[Senate Hearing 117-852]
[From the U.S. Government Publishing Office]
S. Hrg. 117-852
EXAMINING THE 2022 NATIONAL TRAVEL
AND TOURISM STRATEGY
=======================================================================
HEARING
BEFORE THE
SUBCOMMITTEE ON TOURISM, TRADE,
AND EXPORT PROMOTION
OF THE
COMMITTEE ON COMMERCE,
SCIENCE, AND TRANSPORTATION
UNITED STATES SENATE
ONE HUNDRED SEVENTEENTH CONGRESS
SECOND SESSION
__________
JULY 12, 2022
__________
Printed for the use of the Committee on Commerce, Science, and
Transportation
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Available online: http://www.govinfo.gov
__________
U.S. GOVERNMENT PUBLISHING OFFICE
54-988 PDF WASHINGTON : 2024
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
ONE HUNDRED SEVENTEENTH CONGRESS
SECOND SESSION
MARIA CANTWELL, Washington, Chair
AMY KLOBUCHAR, Minnesota ROGER WICKER, Mississippi, Ranking
RICHARD BLUMENTHAL, Connecticut JOHN THUNE, South Dakota
BRIAN SCHATZ, Hawaii ROY BLUNT, Missouri
EDWARD MARKEY, Massachusetts TED CRUZ, Texas
GARY PETERS, Michigan DEB FISCHER, Nebraska
TAMMY BALDWIN, Wisconsin JERRY MORAN, Kansas
TAMMY DUCKWORTH, Illinois DAN SULLIVAN, Alaska
JON TESTER, Montana MARSHA BLACKBURN, Tennessee
KYRSTEN SINEMA, Arizona TODD YOUNG, Indiana
JACKY ROSEN, Nevada MIKE LEE, Utah
BEN RAY LUJAN, New Mexico RON JOHNSON, Wisconsin
JOHN HICKENLOOPER, Colorado SHELLEY MOORE CAPITO, West
RAPHAEL WARNOCK, Georgia Virginia
RICK SCOTT, Florida
CYNTHIA LUMMIS, Wyoming
Lila Helms, Staff Director
Melissa Porter, Deputy Staff Director
George Greenwell, Policy Coordinator and Security Manager
John Keast, Republican Staff Director
Crystal Tully, Republican Deputy Staff Director
Steven Wall, General Counsel
------
SUBCOMMITTEE ON TOURISM, TRADE, AND EXPORT PROMOTION
JACKY ROSEN, Nevada, Chair RICK SCOTT, Florida, Ranking
AMY KLOBUCHAR, Minnesota DAN SULLIVAN, Alaska
TAMMY DUCKWORTH, Illinois MARSHA BLACKBURN, Tennessee
JON TESTER, Montana RON JOHNSON, Wisconsin
KYRSTEN SINEMA, Arizona SHELLEY MOORE CAPITO, West
JOHN HICKENLOOPER, Colorado Virginia
CYNTHIA LUMMIS, Wyoming
C O N T E N T S
----------
Page
Hearing held on July 12, 2022.................................... 1
Statement of Senator Rosen....................................... 1
Statement of Senator Scott....................................... 3
Statement of Senator Hickenlooper................................ 13
Statement of Senator Sullivan.................................... 33
Statement of Senator Klobuchar................................... 35
Witnesses
Hon. Grant T. Harris, Assistant Secretary of Commerce for
Industry and Analysis, International Trade Administration, U.S.
Department of Commerce......................................... 5
Prepared statement........................................... 6
William ``Bill'' Hornbuckle, President and Chief Executive
Officer, MGM Resorts International; Chair, U.S. Travel and
Tourism Advisory Board......................................... 20
Prepared statement........................................... 21
Brad Dean, CEO, Discover Puerto Rico and Vice Chair, Travel and
Tourism Advisory Board......................................... 23
Prepared statement........................................... 25
Appendix
Response to written questions submitted by Hon. Kyrsten Sinema
to:
Hon. Grant T. Harris......................................... 45
William ``Bill'' Hornbuckle.................................. 46
EXAMINING THE 2022 NATIONAL TRAVEL
AND TOURISM STRATEGY
----------
TUESDAY, JULY 12, 2022
U.S. Senate,
Subcommittee on Tourism, Trade, and Export
Promotion,
Committee on Commerce, Science, and Transportation,
Washington, DC.
The Subcommittee met, pursuant to notice, at 10:02 a.m., in
room SR-253, Russell Senate Office Building, Hon. Jacky Rosen,
Chairman of the Subcommittee, presiding.
Present: Senators Rosen [presiding], Klobuchar, Tester,
Sinema, Hickenlooper, Scott, and Sullivan.
OPENING STATEMENT OF HON. JACKY ROSEN,
U.S. SENATOR FROM NEVADA
Senator Rosen. Good morning. And welcome to the seventh
hearing of the Subcommittee on Tourism, Trade and Export
Promotion. Today's hearing, ``Examining the 2022 National
Travel and Tourism Strategy,'' will analyze the Department of
Commerce's recently published strategy to strengthen the global
competitiveness of our Nation's travel and tourism industry,
and to make it more sustainable and resilient.
The Department developed the first National Travel and
Tourism Strategy in 2012 and updated it in 2019, before travel,
tourism, and hospitality businesses and workers were just
devastated by the impacts of the pandemic.
As the pandemic worsened, I joined the Chair and Ranking
Member of the full Commerce Committee, as well as Ranking
Member Scott, in asking Secretary Raimondo to update the
national strategy to address the impacts of the pandemic and
help the travel and tourism industry flourish once again.
I continued to push for a new national strategy when
Ranking Member Wicker and I, joined again by Ranking Member
Scott and several other members of this subcommittee,
introducing the Omnibus Travel and Tourism Act, which passed
the full committee in December.
Our Tour Bus, as we like to call it, would, among many
other things, require the Department of Commerce to regularly
update its travel and tourism strategy and present it to
Congress. So I thank Secretary Raimondo and the Tourism Policy
Council for heeding our call and for developing an ambitious
strategy to enhance travel and tourism in the United States.
This new strategy specifically aims to, one, promote the
United States as a premier travel destination, including
broadening marketing efforts to encourage visitation to
underserved and underrepresented communities.
Number two, to facilitate and--safe and efficient travel to
and within the United States and its territories. Three, to
ensure diverse and accessible tourism experiences with a focus
on showcasing the Nation's Federal lands and national parks and
protecting them for future generations. And number four, foster
resilient and sustainable travel and tourism.
Additionally, the strategy establishes an overarching goal
by 2027 of increasing American jobs by attracting 90 million
international visitors every year who are estimated to spend
about $279 billion annually. Tourism and international travel,
while they grow our country's national output of services, they
increase our foreign currency earning, so they are a service
export.
This new strategy recognizes international travel as a top
U.S. service export. When travelers from global markets visit
U.S. destinations, they buy our goods and services, from
staying in fabulous hotels on the Las Vegas strip, eating in
our amazing restaurants, attending conventions and trade shows
like CES, they pay for tickets to see live entertainment. They
rent cars. They ride tour busses. They spend time in cities and
towns near our fantastic outdoor recreation spots, from Lake
Tahoe to Great Basin National Park to Red Rock Canyon.
This foreign demand means export income for the U.S.
economy. By spending their money in America, international
travelers improve the U.S. trade balance. Just like overseas
buyers of products shipped from a U.S. manufacturer.
In 2019, before the COVID-19 pandemic, nearly 80 million
international visitors came to the U.S. each year and
contributed about $239 billion to the U.S. economy, making the
U.S. the global leader in revenue from international travel and
tourism. But of course, the travel and tourism industry was one
of the hardest hit sectors impacted by the pandemic.
From 2019 to 2020, travel exports decreased nearly 65
percent, and the decline in travel and tourism contributed
heavily to unemployment, with leisure and hospitality jobs
losing just over 8 million jobs between February and April
2020.
In fact, according to the Department of Commerce's National
Travel and Tourism Office, the decline in travel and tourism to
and within the United States accounted for 56 percent of the
decline in U.S. gross domestic product. Thankfully, travel and
tourism, well it is beginning to recover.
I am happy to report that Harry Reid International Airport
in Las Vegas has had the best capacity recovery from the
pandemic from any airport worldwide, and seat capacity last
month, up 7 percent from 2019, which has been its best record.
By following the national tourism and--excuse me, by following
the new National Travel and Tourism Strategy, the Federal
Government can continue to support this growth and help travel
and tourism businesses in Nevada and the Nation fully recover.
Today, we will have two witness panels to review and assess
the recently released strategy. Testifying on our first panel
is Grant Harris, Assistant Secretary of Commerce for Industry
and Analysis. In this role, Mr. Harris and his team help define
the future of international trade, investment, and export
promotion, including tourism promotion through the National
Travel and Tourism Office.
Sitting for the second witness panel, we have the Chair and
Vice Chair of the U.S. Travel and Tourism Advisory Board, which
serves as the advisory body to the Secretary of Commerce on
matters relating to travel and tourism industry right here in
the United States.
The Board advises the Secretary on Government policies and
programs that affect U.S. travel and tourism, offers counsel on
current and emerging issues, and provides a forum for
discussing and proposing solutions to industry related
problems.
We are privileged to have testifying before us Board Chair,
Bill Hornbuckle and Vice Chair, Brad Dean. Mr. Hornbuckle is
Chairman and CEO of MGM Resorts International, and Mr. Dean is
CEO of Discover Puerto Rico. I will introduce them both to the
Subcommittee when we begin panel two.
Thank you to all of our witnesses for being here today. I
look forward to hearing each of you share your experiences and
expertise with us, as well as reviewing the new national
strategy. I will now turn it over to Ranking Member Scott for
his opening statement, and then introduce our first witness
panel. Senator Scott.
STATEMENT OF HON. RICK SCOTT,
U.S. SENATOR FROM FLORIDA
Senator Scott. I want to first thank Chair Rosen for
hosting this hearing today. And I also want to thank Chair
Rosen for her focus on making sure we grow our national and
international travel. Both of our states are our tourism
states, and I know Chair Rosen cares, like I do, that we get
our travel industry back to even better than what was before
the pandemic.
I want to thank all of our witnesses for being here today.
I look forward from hearing from each of you--your testimony.
The travel and tourism industry has a significant impact on the
American economy, and businesses small and large are working
tirelessly to recover from COVID-19. In the great state of
Florida, tourism is the largest driver of economic growth in
the state's economy.
My state is proud to be home to some of the best travel
destinations in the world. I know Chair Rosen would like to
brag a lot about Nevada. We have got some of the best travel
destinations in the world which attracts travelers to come to
Florida to explore all that we have to offer. Tourism is
essential to supporting local businesses, creating jobs, and
increasing the ability for states to invest into critical
environmental projects, transportation, public safety, and
education.
With recent lifting of COVID testing requirements for
vaccinated international travelers, we will see soon--we hope
we will see soon a large increase in international travelers
who want to come to United States during the summer months.
These next few months will be vitally important in COVID
recovery for businesses small and large who rely on strong
tourism industry.
People all over the world desperately want to travel. After
2 years of restrictions and Congress needs to do everything we
can to facilitate their travel to the United States. This 2022
National Travel and Tourism Strategy we will be discussing
today is aimed to do just that. It seeks to promote the United
States as a premier travel destination, facilitate travel
experiences that are available for all, ensure our destinations
and experiences can be employed for many years to come.
However, there are still some challenges holding back the
full return of the United States tourism industry. We are
witnessing large labor shortages across all industries, making
it difficult for businesses to staff their operations. During--
due to massive staff shortages in the airline industry, many
travelers are experiencing unacceptable flight delays and
cancellations, which deters people from traveling.
We are also seeing record prices at the gas pump, making
summer road trips unaffordable for many families. This
committee has been instrumental in championing effective policy
to help the tourism industry recover from the impact of COVID-
19.
Tourism, we talked about the Ominous Travel Tourism Act,
which was dubbed the Tour Bus, which will study the impacts of
COVID on the travel and tourism industry and implement
strategies to promote travel to the United States.
And just days after our last subcommittee meeting, the
Biden Administration finally lifted the testing mandates for
additional travelers who are fully vaccinated. I and many
others have been urging the Administration to take this step
for months, and I am glad we have finally taken this big step
that will help to restore the tourism industry to pre-pandemic
levels and better and promote international travel to the
United States.
Domestic and international travel is slowly but surely
returning to normal. We will do everything we can to protect
small businesses and American jobs. We must continue to work on
the challenges facing the travel and tourism industry.
I look forward to hearing from our witnesses on how
Congress can best serve the tourism industry, meet the goals
laid out in the 2022 travel and tourism strategy. I want to
thank each of you for being here today. Thank you, Chair Rosen.
Senator Rosen. Thank you, Senator Scott. We would like to
begin now with panel one. And it is my pleasure to introduce
Grant Harris. He is Assistant Secretary for Commerce for
Industry and Analysis. He is here today to discuss the
Department of Commerce's recently released National Travel and
Tourism Strategy.
Mr. Harris was sworn into his position on April 19, 2022,
after advancing through the full Commerce Committee and being
confirmed on the Senate floor. In his new role, he leads a
staff of more than 225 trade and industry experts that produce
innovative and in-depth analysis and develop strategies to
maintain the leading competitive edge of American industry
throughout the world.
Mr. Harris also oversees the National Travel and Tourism
Office, which is housed within the Department of Commerce's
International Trade Administration and is the Federal
Government's official source for U.S. travel and tourism
statistics, and the central hub for Federal travel and tourism
efforts.
Mr. Harris, thank you for being here today. And I want to
thank Secretary Raimondo and the Tourism Policy Council for
developing the new national travel strategy. And I recognize
you now for your opening statement.
STATEMENT OF HON. GRANT T. HARRIS,
ASSISTANT SECRETARY OF COMMERCE FOR INDUSTRY
AND ANALYSIS, INTERNATIONAL TRADE ADMINISTRATION,
U.S. DEPARTMENT OF COMMERCE
Mr. Harris. Chair Rosen, Ranking Member Scott, and members
of the Committee, thank you for the opportunity to talk about
the National Travel and Tourism Strategy and the state of the
U.S. travel and tourism industry. Thank you also for your
leadership on travel and tourism. Developed through the Tourism
Policy Council, chaired by Secretary Gina Raimondo, the
strategy brings a whole of Government focus to increasing
American jobs and growing the economy through travel, tourism,
and outdoor recreation.
The strategy will support a more robust and sustainable
industry moving forward, something that I know is a priority
for you and members of the Committee and which I share. I also
want to thank my partners across Departments and agencies
throughout the Administration, as well as the Travel and
Tourism Advisory Board and the many stakeholders who provided
valuable recommendations and input that informed this strategy.
It has truly been a whole of Government effort.
More than two years ago, COVID-19 forced an economic
shutdown across the Nation and the world that the travel and
tourism industry was hit particularly hard by. The industry is
still working to recover. In 2019, 79.4 million visitors came
to the United States. In 2020, that number fell all the way to
19.2 million.
The Administration's robust vaccine rollout and effective
travel policies, including the recent decision to drop pre-
departure testing, have helped U.S. tourism start to rebound,
but we have a lot of work to do to return all segments of
tourism in the United States to pre-pandemic levels.
Announced by Secretary Raimondo last month, the strategy
sets an ambitious goal of increasing American jobs by
attracting and welcoming 90 million visitors by 2027, who we
estimate will spend $279 billion annually. This goal matches
recommendations from our Travel and Tourism Advisory Board.
The strategy is centered around four pillars. First,
promote the United States as a travel destination. Second,
facilitate travel to and within the United States. Third,
ensure diverse, inclusive, and accessible travel experiences.
Fourth, foster resilient and sustainable travel and tourism.
The strategy recognizes that the recovery in the travel and
tourism industry has been uneven. Some regions and market
segments, such as business travel, will need more help to
bounce back. Some of the Federal implementation objectives of
the strategy to grow and improve travel, tourism, and outdoor
recreation, include the following: Showcasing tourism offerings
across the United States.
Helping State, local, and tribal Governments identify
opportunities to access funding and technical assistance to
plan, build market, and manage sustainable tourism economies.
Streamlining the entry process as managed by the Departments of
State and Homeland Security.
Supporting travel and tourism workers' access to childcare,
reliable transportation, and career pathways, especially for
people of color and women. And working to build a resilient
travel, tourism, and outdoor recreation sector and reduce its
contributions to the climate crisis. And as we have heard from
many companies in the industry, adopting these mitigation
measures is also good for their bottom lines.
In advancing these goals, the Administration will work in
close partnership with industry, labor organizations, State,
local, and tribal Governments, and, of course, Congress. In
that regard, I want to emphasize our appreciation for the $250
million in emergency funding that Congress made available to
Brand USA.
This will be a significant help as the travel and tourism
industry works to recover. This new strategy is also the only--
only the latest step in the Biden-Harris Administration's work
to revitalize travel, tourism, and the outdoor recreation
industry.
The Commerce Department's Economic Development
Administration has already distributed $510 million in formula
funding to states, territories, and the District of Columbia to
support travel, tourism, and outdoor recreation as part of the
American Rescue Plan of 2021.
It is now working to issue $240 million in competitive
grants. As of June 30, EDA has announced $90.7 million of the
competitive funding. The Administration appreciates this direct
Congressional support for the industry when it was most needed.
In Nevada, the Nevada Commission on Tourism is using this
funding to provide marketing grants across dozens of
organizations to boost tourism to rural communities. In
Florida, funds are being used to conduct marketing campaigns,
which include international digital marketing to promote online
content in foreign countries.
In addition, the International Trade Administration's
National Travel and Tourism Office continues to provide vital
statistics and data to the industry and inform private sector
decisionmaking, while working to enhance the international
competitiveness of the U.S. travel and tourism industry.
In conclusion, a sustained, widespread recovery in the
travel and tourism industry depends in part on our close work
across the Administration and with Congress to support job
creation and foster sustainable growth in communities across
the country for years to come. Thank you. I welcome your
questions.
[The prepared statement of Mr. Harris follows:]
Prepared Statement of Grant T. Harris, Assistant Secretary of Commerce
for Industry and Analysis, International Trade Administration,
U.S. Department of Commerce
Chair Rosen, Ranking Member Scott, and members of the Committee,
thank you for the opportunity to speak about the National Travel and
Tourism Strategy and the state of the U.S. travel and tourism industry.
Thank you also for your leadership on travel and tourism.
Developed through the Tourism Policy Council, chaired by Secretary
Gina Raimondo, the Strategy brings a whole-of-government focus to
increasing American jobs and growing the economy through travel,
tourism, and outdoor recreation. The Strategy will support a more
robust and sustainable industry moving forward--something that I know
is a priority for you and members of this committee and that we share.
I also want to thank my colleagues at the Departments of State,
Homeland Security, Transportation, the Interior, Labor, and
Agriculture, as well as the National Security Council, Environmental
Protection Agency, Small Business Administration, and the Centers for
Disease Control and Prevention, for their partnership and hard work in
developing this Strategy. It is truly an Administration-wide effort. I
also want to thank the U.S. Travel and Tourism Advisory Board and the
many stakeholders who provided valuable recommendations and input that
informed this Strategy.
More than two years ago, COVID-19 forced an economic shutdown
across the Nation and the world that hit travel and tourism
particularly hard. The industry is still working to recover.
In 2019, 79.4 million visitors came to the United States.
In 2020, that number fell all the way to 19.2 million.
The Administration's robust vaccine rollout and effective travel
policies, including the recent decision to drop pre-departure testing,
have helped U.S. tourism start to rebound, but we have a lot of work to
do to return all segments of tourism in the United States to pre-
pandemic levels.
Announced by Secretary Raimondo last month, the Strategy sets an
ambitious goal of increasing American jobs by attracting and welcoming
90 million international visitors by 2027, who we estimate will spend
$279 billion annually. This goal matches recommendations from our
Travel and Tourism Advisory Board.
The Strategy is centered around four pillars:
First, promote the United States as a travel destination.
Second, facilitate travel to and within the United States.
Third, ensure diverse, inclusive, and accessible travel
experiences.
Fourth, foster resilient and sustainable travel and tourism.
The Strategy recognizes that the recovery in the travel and tourism
industry has been uneven. Some regions and market segments, such as
business travel, will need more help to bounce back.
Some of the Federal implementation objectives of the Strategy to
grow and improve travel, tourism, and outdoor recreation, include the
following:
Showcasing tourism offerings across the United States;
Helping state, local, and tribal governments identify
opportunities to access funding and technical assistance to
plan, build, market, and manage sustainable tourism economies;
Streamlining the entry process (as managed by the
Departments of State and Homeland Security);
Supporting travel and tourism workers' access to child care,
reliable transportation, and career pathways, especially for
people of color and women;
And working to build a resilient travel, tourism, and
outdoor recreation sector and reduce its contributions to the
climate crisis.
As we've heard from many companies in the industry, adopting these
mitigation measures is also good for their bottom lines.
In advancing these goals, the Administration will work in close
partnership with industry; labor organizations; state, local, and
tribal governments; and Congress.
In that regard, I want to emphasize our appreciation for the $250
million emergency funding that Congress made available to Brand USA.
This will be a significant help as the travel and tourism industry
works to recover.
This new Strategy is only the latest step in the Biden-Harris
Administration's work to revitalize the travel, tourism, and outdoor
recreation industry.
The Commerce Department's Economic Development Administration has
already distributed $510 million in formula funding to states,
territories, and the District of Columbia to support travel, tourism,
and outdoor recreation as part of the American Rescue Plan Act of 2021,
and is working to issue $240 million in competitive grants. As of June
30, EDA has announced $90.7 million of the competitive funding. The
Administration appreciates this direct Congressional support of the
industry when it was most needed.
In Nevada, the Nevada Commission on Tourism is using this funding
to provide marketing grants across dozens of organizations to boost
tourism to rural communities.
In Florida, funds are being used to conduct marketing campaigns,
which include international digital marketing to promote online content
in foreign countries.
In addition, the International Trade Administration's National
Travel and Tourism Office continued to provide vital data and
statistics to the industry that inform private sector decision-making
and works to enhance the international competitiveness of the U.S.
travel and tourism industry.
A sustained, widespread recovery in the travel and tourism industry
depends in part on our close work across the Administration and with
Congress, to support job creation and foster sustainable growth in
communities across the country for years to come.
Thank you. I welcome your questions.
Senator Rosen. Well, thank you, Mr. Harris. And again,
thank you for being here today to address our questions about
the National Travel and Tourism Strategy. So I am just going to
jump right into my first question.
So we want to talk about agency collaboration to promote
tourism, because a key aspect of the new national strategy is
that it lays the foundation for a whole of Government, excuse
me, approach to increasing travel and tourism in the United
States. So that makes inter-agency collaboration key to the
strategy's success and to the future growth of travel to Las
Vegas, to Reno, tourism destinations throughout Nevada that
depend on international visitors. I am therefore glad to see
the strategy recommends streamlining the communication of U.S.
travel policy by developing coordinated plans at U.S. embassies
and consulates that support increased travel and tourism from
international markets.
So, Mr. Harris, can you discuss your plan for Commerce's
coordination with the State Department? Talk about how you will
work together under this strategy to promote--excuse me. I need
a drink of water. Thank you. And talk to me about how you work
together under this strategy to promote international travel,
including by working to reduce barriers to travel like visa
processing delays?
Mr. Harris. Thank you, Chair Rosen. As you mentioned, this
is going to require intensive coordination across the
Government and with Congress, as well as with stakeholders,
labor organizations, industry groups, State, local, and tribal
Governments. It is going to need to be a massive effort to make
sure that we reach this ambitious goal.
You, Chair Rosen, and Ranking Member Scott both mentioned
various issues in your opening remarks, too, about workforce
shortages, visas and other issues that, as you rightly note,
the Department of Commerce will need to work closely with the
Departments of State and Homeland Security, the Department of
Labor.
We are committed to this effort. I would just mention that
Secretary Raimondo chairs the Tourism Policy Council, which is
charged with creating the strategy and now implementing it. So
we are rolling up our sleeves now to do so.
Senator Rosen. Excuse me, I have to turn my microphone on.
The new strategy also talks about how the Small Business
Administration has a State expansion program, we call it STEP.
It has potential to help tourism related small businesses,
design international travel marketing campaigns, and even
attract international partnerships through the Department of
Commerce's commercial service programs.
So can you talk about how the Department of Commerce is
going to use a travel and tourism strategy to collaborate with
the SBA on STEP to help our tourism small businesses thrive?
Mr. Harris. Thank you, Chair Rosen. Absolutely. Small
businesses comprise the majority of the industry. And with SBA
and with other partners, we are committed to supporting them.
The STEP program that you mentioned is an important example,
and this provides funds and access that can help with export
development and expanding into international markets.
You also mentioned commercial service officers, which we
have--the Department of Commerce has in over 100 sites across
the United States, including in Nevada, of course. And these
are also another important source to help small businesses
think about marketing, promoting the diverse tourism products
that they have on offer, and increasing international
visitation.
Senator Rosen. Well, we want to be sure that all of our
small businesses know about these collaborations, because I can
tell you in our state, 99 percent of business is small
business. Much of that does rely on our travel and tourism
industry. So it is important that you get the word out, that
they know that support is there, collaboration is there, and to
help us reach our goals.
And of course, our communities begin to thrive and grow,
and that is a good thing. But we are focusing a lot today on
the international travel experience. And so to support
inclusive and accessible tourism experiences, the new strategy,
it advocates for additional resources for Federal agencies to
translate and create public materials in multiple languages and
in braille.
So earlier this year, my bipartisan bill, the Translate
Act, which Representative Titus led in the House, it passed out
of this committee. This bill would simplify air travel for non-
English speakers, international travelers, and those with
visual or hearing impairments by ensuring that TSA signage and
materials at airports are available in more languages and in
additional forms.
This is going to support travel and tourism in and out of
the United States. So how does this bill align with the goals
of the Department's recommendation in its travel and tourism
strategy?
And what other steps do you think this committee can take
to make international travel to the United States more
accessible for non-English speakers around the world?
Mr. Harris. Thank you, Chair Rosen. This is another
important issue that receives great focus in the strategy and
is consistent with the themes that you are mentioning, where we
would like to increase the number of languages and the use of
braille to make sure that marketing efforts, signage, and our
messaging across the Board is as accessible as possible.
We also want to make sure that sites are accessible from a
disability perspective, too. This is one of the key pillars of
the strategy in promoting diverse, inclusive, and equitable
experiences, and making sure that we are showcasing this
broader way of tourism products. It is something that I want to
continue to work with you and your staff on as well in this
committee.
Senator Rosen. Well, thank you. We want to make it
efficient and accessible as possible. And you really focused a
lot on harnessing efficiencies, and so TSA checkpoints. We know
that everybody has to go through them and so we have to harness
efficiencies there. We have to discuss the one stop security
pilot program that, wow, you have implemented.
So currently international air passengers, when they arrive
in the United States, who have subsequent transfer flights,
they generally have to be screened again at an airport security
checkpoint before boarding the transfer flight.
My Omnibus Travel and Tourism Act, it includes a provision
that would allow passengers and baggage arriving from certain
foreign airports to bypass a second round of screening if the
point of last departure airport has screening commensurate to
us in the United States, and we know that those airports do
exist.
So how might the establishment of a one stop security pilot
program, how does it directly support and help our inbound
international traveler while maintaining safety?
Mr. Harris. Thank you, Chair Rosen, for that question. I
would defer to my colleagues at the Department of Homeland
Security on what it will take to implement a one stop program.
But what I can say is this, and the strategy mentions a pilot
program.
The strategy mentions looking at some of the operational
and policy considerations and commits the Department of
Homeland Security to continuing to do that. We, taking a step
back, are very committed to facilitating travel to and within
the United States.
DHS and the State Department will be critical. They have
made some important commitments, and we are going to now work
with them to do all that we can to facilitate that travel and
get that number up of visitors.
Senator Rosen. Because collaboration--we are going to
continue to talk about that over and over, collaboration with
the SBA, collaboration with DHS, for TSA, all of those things
are really part of the travel ecosystem. And so when we think
about that, trying to be sure that everybody knows what is
available and that we are all working toward the same goal
becomes really important.
And so Senator Scott is going to be back in a minute. But
we both have fabulous states, and of course, all 50 States
great and wonderful, and some place great to travel to and
something wonderful to see, but our outdoor tourism, especially
as we have seen in the pandemic, people have rediscovered the
outdoors. They really wanted to get out and enjoy those spaces.
And of course, in Nevada, we have got so much natural
beauty. And so your strategy discovers--talks about sustainable
outdoor tourism, collaborating with our outdoor recreation
industry, leveraging that geo-tourism that supports tourism and
sustainability. Outdoor tourism, like I said, a major part of
Nevada's economy, particularly in our rural communities and in
the Northern part of the state.
We have tourism everywhere from Lake Tahoe all the way down
to Lake Mead, our Great Basin National Park, some of the
darkest skies in the United States, you can really see the
stars. And so 15 million visitors annually visit Lake Tahoe,
$5.1 billion in economy. And in recent years, we focused a lot
on Lake Tahoe, has faced challenges of pollution, traffic, a
shortage of affordable housing for the tourism workforce, which
is something we have to think about as well.
And the Tahoe Regional Planning Agency is developing a plan
to address these issues that will center local communities,
equip our local agencies to be effective stewards of the land,
and welcome the millions of visitors to all of our beauty, not
just in our state and my state of Nevada, but across this
Nation.
So, how will the Department of Commerce work with
communities through your new strategy to promote healthy and
sustainable outdoor tourism that really invests in bringing up
our local economies so that they can support the industry and
remain good stewards of the environment?
Mr. Harris. Thank you, Chair Rosen. And I appreciate the
reference to Lake Tahoe. My family has done its small part in
contributing to those numbers and vacationing there as well.
Senator Rosen. And we thank you for that.
Mr. Harris. I think you have hit an important point on
encouraging outdoor recreation, and this strategy is meant to
put on offer, and to use in your terms, to make sure that
everyone knows what is available at the many diverse offerings
across the United States. We are very thankful to Congress for
its support in the American Rescue Plan for these EDA grants,
which I have been referencing.
Those are supportive of outdoor recreation in particular,
with some of the money that is being spent through those to
states and territories and the District of Columbia. We have
also been working in implementing the bipartisan infrastructure
law, which is supporting both national parks, which is
supporting trails, which is supporting other aspects of outdoor
recreation.
I would say in closing, one of the key components of this
strategy is making clear that we need to work with communities
and tourism economies to make this travel sustainable. In
addition to marketing and putting on offer, we need to work
with communities and community based management practices to
ensure that we are ready for this influx of visitors.
Senator Rosen. Thank you. Communities large and small
really need this help. I am going to turn now to Ranking Member
Scott for his set of questions.
Senator Scott. Thank you, Chair Rosen. Thanks for being
here. So I think we all would agree that the best way to get
things done is to have a plan, so thank you for doing this. How
does the Department of Commerce plan on implementing the
strategy so that the goals outlined in the plan are met, and
how did you--who do you consult with to create the strategy?
Mr. Harris. Thank you, Ranking Member Scott. You are
exactly right, we need a plan, and now we need to implement. In
consulting on this strategy, first and foremost, we looked at
the Travel and Tourism Advisory Board, which, as was referenced
earlier, is a very important body in providing recommendations
to Secretary Raimondo, including the target that was selected
for trying to reach 90 million visitors.
That was a recommendation from TTAB based on economic
modeling that they had done. We also did extensive
consultation, not just, of course, across Departments and
agencies, but with external stakeholders.
This included my recent travel to Florida to attend IPW,
the industry's premiere event, where we had the strategy in
hand, but we are still continuing the conversations, as we are
now, about how do we make it work? How do we make sure that
these commitments are seen and felt by communities across the
country?
Senator Scott. Thank you. As we know in Florida, tourism--
and I am sure the same thing is true for Nevada, tourism can be
a huge revenue generator for the State. Does the Department of
Commerce have an estimate on how much tax revenue will be
generated by achieving the goals in this strategy?
Mr. Harris. Thank you, Ranking Member Scott. You are
exactly right about it being a revenue generator. Of course, we
are trying to reach the goal of getting to $279 billion in
spend for this 90 million visitors.
I don't have a number offhand on revenue beyond that but
would be happy to take that back. We are exceedingly focused on
the job creation aspect, and as the strategy notes, 1 in 20
jobs are linked to travel and tourism, and we will be focused
like a laser on getting these numbers up.
Senator Scott. Great. There has been a series of holiday
weekends this year that we have seen large numbers of delayed
and canceled flights, disrupting people's travel which hampers
tourism's full comeback. How has this been addressed in your
strategy, and are you working with other Departments and
stakeholders to mitigate these travel disruptions?
Mr. Harris. Thank you, Ranking Member Scott. You have
touched on another important issue about the workforce, and
this has come up repeatedly as well in making sure that a labor
shortage is not a bottleneck to the travel and tourism
industry's continued recovery.
What we are doing with the Department of Labor and with
others is trying to make sure that our programming and our
outreach is working with industry to think about career
pathways, to think about apprenticeship programs, to think
about how funding and assistance can be geared toward solving
this challenge.
And to your previous point, Senator, about working with
industry, I am hearing this a lot in my consultations about the
need to solve an immediate short-term problem, but also the
need to make these career pathways attractive on a going
forward basis to make sure that the industry, not just right
now, but in years to come, has the people that it needs to
serve this influx of visitors that we are hoping for.
Senator Scott. Thank you. The cruise industry is a vital
part of Florida's tourism industry, as you know, as well as
many other states represented here in this committee. How has
the Department of Commerce worked with the CDC to safely ease
COVID requirements for the cruise industry?
Mr. Harris. Thank you, Ranking Member Scott. This has been
a close collaboration. It is indeed a very important industry.
And I know how important it is to your state, and not to keep
referencing my family, but we have cruised many times out of
Florida as well.
Secretary Raimondo has been focused, especially working
with the White House, on making sure that there is a balanced
perspective of thinking about economic security and jobs, as
well as thinking about the advice of public health experts in
making these decisions going forward.
I would say when it comes to remaining COVID policies and
what next steps would look like, that based on what we are
seeing in data and on the COVID situation, there is an intent
to transition to normal operations. I think there will be more
coming in that space.
And finally, I would note that the Cruise Lines
International Association, from the numbers that I have seen
from them, are hoping that nearly all of their memberships are
back in the water and sailing by the end of this summer. So we
will continue to keep supporting this progress.
Senator Scott. So what do you think are the--what is going
to be our limitations to fully recovering our tourism industry
and getting all of our businesses reopened?
Mr. Harris. Thank you, Ranking Member Scott. That gives me
a wide lane here to talk about some of the challenges that we
know that we are going to confront. Collaboration will be key
in working on visa wait times and getting those numbers down.
That is a persistent issue, especially since the COVID-19
pandemic caused the closure of so many embassies and
consulates. And now, as the State Department is restaffing
those, they are hopeful that the backlog will decrease. The
workforce development issues are key, as I have talked about,
both the immediate problem and on a going forward basis, making
sure that we have the right people ready to go.
As part of that, we want to make sure that equity and
diversity and inclusion are key themes to broaden the inclusion
both for attracting personnel, but also the communities that
are affected by this.
We are also going to have to be very mindful that there may
be future public health crises, there may be other issues that
surprise us. We set an ambitious number to try to reach, and we
are going to keep working with stakeholders to try to reach
that based on what we know now.
Senator Scott. Can I ask one more question? Oh--sure.
Senator Rosen. Senator, then I will come right back to you.
Senator Hickenlooper, you are recognized for your round of
questions.
STATEMENT OF HON. JOHN HICKENLOOPER,
U.S. SENATOR FROM COLORADO
Senator Hickenlooper. Thank you, Chair Rosen, and thank
you, Mr. Harris, for your service and for being here today. And
I have had several discussions over the past year or two with
Secretary Raimondo, and I know that you are all working hard on
the issues around climate rescue and making sure that we have
resilience.
The strategy that you guys, that you are discussing today,
this is a goal to build a travel and tourism sector that is
resilient to the impacts of climate change. Obviously, in
Colorado, we have got a big ski industry.
Average temperatures in the last 40 years have risen about
three degrees, which is just a remarkable number in such a
short period of time. Our spring snowmelt now comes somewhere 2
to 4 weeks earlier than it did several decades ago.
Many of the ski resorts are taking aggressive actions to
address the issues of resilience and sustainability to make
sure that they are more efficient in their use of water and the
equipment for snowmaking. Basically they are trying to offset a
lack of natural snow.
Can you discuss some of the, what you all perceive as the
importance of decarbonization and resilience planning in terms
of the health of our national tourist agency or tourist
industry, not just in Colorado?
Mr. Harris. Thank you, Senator, for that question. You are
right to note the climate factors vary heavily into the
strategy. It even includes mention about seasonality and
changing temperature, affecting ski locales and others that
where this will need to be factored in and how they welcome and
what they do with respect to recovering from the pandemic.
I would say, Senator, more concretely, this strategy is
committed to decarbonization as it is a primary goal of the
Administration, which means investing in things like electric
vehicles, charging stations, thinking about working with
industry on sustainable fuel sources as well.
It is also focused on working with local communities to
make sure that the planning is in place to have sustainable
tourism ecosystems. That is the planning and management with a
sustainability focus so that these resources and these amazing
destinations will be here for decades and decades to come.
Senator Hickenlooper. Yes, and I think that is a--again, we
think of the natural wonders as such a resource that
contributes so significantly to our economy but is something
that depends on longevity and basically hopefully eternity. Let
me switch to the different aspect of the ski resorts.
Most of our ski resorts pay fees to the National Forest
Service and on Forest Service land. To a large extent, fees
that nationwide are almost $40 million a year now. To offset
the cost of increased recreational use by ski resorts,
Colorado's national forest need more financial resources to
reinvest in the long-term maintenance needs of the national
forests in Colorado and in the Nation, and to address
sustainability needs as we see them in the condition of our
forest and our--in our recreational facilities.
We cosponsored, I was one of the co-sponsors on the Ski
Hill Resources for Economic Development. That sounds unusual
name of it, so that we could get to the acronym SHRED, but the
SHRED Act to support our outdoor recreation communities. And I
want to ask you to discuss the Department's 2022 National
Travel and Tourism Strategy. How does it support the needs of
the outdoor recreation community?
Mr. Harris. Thank you, Senator. Supporting the needs of the
outdoor recreation community is a priority of this strategy. It
is both in terms of the commitments that we are making, that we
want to showcase our offerings and we want to make sure that
all communities benefit, whether it is urban and rural, whether
it is outdoor recreation, particularly in underserved
communities.
It also is a factor in the EDA grants in supporting the
ecosystems to welcome and make sure that these outdoor
recreation sites aren't over utilized or are unable to cope,
particularly in gateway communities.
And it is a point too in implementing and carrying forward
with the bipartisan infrastructure law as infrastructure
related to national parks, trails, and others are ready to go.
We are really ambitious in setting this number for increased
visitation, but it will be crucial that we work with
communities to be ready to receive visitors and increase
numbers in a sustainable way.
Senator Hickenlooper. Great. Just perfect. Then, just about
out of time so I will yield back to Chair Rosen, but just point
out that the skiing in Colorado still is slightly better than
the skiing in Tahoe. All right, well, I will throw out the last
question, then.
[Laughter.]
Senator Hickenlooper. She just tried to cut me off.
Senator Rosen. We have some great skiing in Nevada. Is
there skiing in Florida, Senator Scott?
[Laughter.]
Senator Hickenlooper. Let me ask one quick last question.
Many hardworking tourism employees provide the services, create
the enjoyable experiences that drive this tourism economy. And
we need to provide housing and transportation options, options
because the communities and where these resorts are have priced
themselves out of such transportation and housing choices.
Colorado cities and towns in Colorado, or Colorado cities
and towns are benefiting from grant programs in the bipartisan
infrastructure law, the infrastructure bill, to help build
public transit that connects livable areas with popular
mountain destinations. How does the 2022 National Travel and
Tourism Strategy support the needs of the tourism workforce?
Mr. Harris. Thank you for that question, Senator.
Supporting the needs of the workforce is a priority. It is
going to be crucial to implement this strategy. One thing that
this strategy really builds on is the ongoing work of the
Travel and Tourism Advisory Board, which sent a letter to
Secretary Raimondo in December of last year outlining a lot of
key recommendations related to the workforce.
And we have included many of those recommendations and are
looking to Departments and agencies to think through
implementation of how we can be doing more. It lists some of
the examples that you mentioned, like housing. It also includes
things like career pathway programs, reliable worker
transportation, and supporting family care access.
We need to look holistically at supporting workers and
their families so that they can partake in this industry and
find the career pathways that will serve them, including and
particularly related to people of color and women.
Senator Hickenlooper. Great. Thank you, Mr. Harris. I
appreciate it.
Mr. Harris. Thank you.
Senator Hickenlooper. Yield back. I thank the Chair.
Senator Rosen. Senator Scott.
Senator Scott. Mr. Harris, thanks again for being here. Can
you talk about the issue that I think we are hearing all over
the country, I hear it in Florida, with work visas and how
difficult it has been to get work visas? And do you think the
rules are right around work visas? Because it really impacts us
and our seasonal workers for tourism.
Mr. Harris. Thank you, Ranking Member Scott. The visa issue
is one where we need to be making a lot of progress across the
Board and the Department of State is seized with this. I
referenced earlier coming back from the pandemic and thinking
about processing times.
When it comes to processing visas for workers in
particular, this is another issue where we are collaborating
with the State Department. I defer to them on how quickly they
think they can get these numbers down, but it is an ongoing
conversation with them.
We are very aware that we need to be collaborative across
the Government, but especially with the State Department, to
think about bringing in the people that are needed. And I am
also very aware that many businesses rely on these workers,
particularly for seasonal, summer work.
Senator Scott. Thank you.
Senator Rosen. Thank you. I would like to build a little
bit on what Senator Hickenlooper was talking about to build our
tourism workforce, because last year, the Tourism Travel
Advisory Board, we are just going to call it TTAB for short,
did advise the Secretary of Commerce that the pandemic had
worsened.
Mike, you have spoken to already longstanding barriers to
workforce participation in the travel and tourism industry, and
it has just created new hurdles to workplace satisfaction. So
TTAB recommended that Federal agencies take these steps to
support travel and tourism's--our workers.
Access to childcare is so important. People may work, of
course, in Las Vegas and some of our hotels, they work all 24
hours a day, three full shifts. And so really important that we
have broad access to childcare. Of course, affordable housing
all across this Nation. Reliable transportation to and from
work.
And like you said, career pathways for women and
underrepresented minorities. So does the Department of
Commerce--again, this is going to probably require
collaboration, but does it itself, do you have the workforce
and resources you need to meet the needs of implementing and
carrying out the recommendations and policies that you have put
forward in this strategy?
Mr. Harris. Thank you for that question, Chair Rosen. On
implementation, this is going to need to be a whole of
Administration effort. Secretary Raimondo leads the Tourism
Policy Council, which includes all the Departments and agencies
that have programs and equities related to implementing this.
And resourcing them and supporting them will be ongoing
needs. I want to thank Congress as well for the important work
that has already been done in supporting Brand USA, in
supporting the bipartisan infrastructure law, and in supporting
the American Rescue Plan funds that EDA is using right now,
which again touches on some workforce development and career
pathway issues.
These are important efforts that will need to continue. And
finally, I would just say that you have no greater proponent of
such work than Secretary Raimondo, who has been speaking about
the access to care and the need to think holistically about
supporting workers.
Senator Rosen. Yes, thank you again, because it is
communities. When communities thrive, our workforce thrives,
and our businesses thrive. But we will go back again. Senator
Scott was talking about the visa waiver program.
How important that is for seasonal workers and other kinds
of workers that we need. And we need flexibility and
modification there. And that is a whole other subject. But
Senator Scott and I do have a new bill for promoting tourism
between United States and Israel.
And so the strategy recommends enhancing programs to expand
data sharing with other countries, such as the new broader
information--security information sharing requirement for the
visa waiver program. It serves as a boon to international
travel.
We recently led a letter--led a group of our colleagues in
sending this letter to Secretary Blinken and Secretary
Mayorkas, encouraging them to certify Israel as an eligible
country for participation in the visa waiver program. Adding
Israel to the program would both enhance national security and
boost the U.S. travel and tourism industry.
And so, according to the U.S. Travel Association, adding
Israel to the visa waiver program could bring an additional
450,000 visitors from Israel to the U.S. over a 3-year period.
That is an estimate to generate $3.6 billion in economic output
and support over 6,000 American jobs.
And so can you talk about how this partnership with Israel
and possibly other international--other countries, how do we
expand that and help us make it easier, again, for the
international tourists?
Mr. Harris. Thank you, Chair Rosen. I appreciate the
opportunity again to speak to visas and the work that the State
Department and the Department of Homeland Security have
committed to undertaking as part of the strategy.
A big focus here is on increasing efficiencies and
streamlining processes, and there are multiple commitments that
are made there too, which include working with partners Canada,
and Mexico. It includes looking at our visa programs and making
sure that we have efficiencies wherever we can.
I am aware of your letter and that the State Department has
received it, and we are going to be continuing to work with
them, not just on the visa waiver program, but across the Board
for seasonal worker visas and nonimmigrant tourist visas and
the like, to make sure that we are capturing these efficiencies
and supporting them as they restaff embassies and consulates,
and work to reduce the processing time, and make further gains
in facilitating travel to the country.
Senator Rosen. Thank you. Senator Hickenlooper, do you have
additional questions? OK. I wasn't sure so I just wanted to
check. Senator Scott, do you have additional questions?
Senator Scott. Could you talk about how you work with our
territories like Puerto Rico and others to make sure they can
grow their tourism industry? I know we are going to hear from
the head of the tourism for Puerto Rico in a few minutes.
Mr. Harris. Right. Thank you, Ranking Member Scott. Very
dangerous, given that on the next panel will be the foremost
expert on what is happening. But I would say, particularly with
respect to Puerto Rico, for instance, they have received an EDA
grant that is looking at a workforce development related issue.
It is part of this strategy throughout. We are very careful
to, even in the language at every point, to make sure that we
were speaking not just to State Governments, but also to
territories and tribal Governments as well. And to your
question, Senator, from the beginning, about what it will take
to implement this strategy, these are important travel and
tourism destinations.
They are also important partners in understanding how these
issues affect the workforce, how we need to grow the workforce.
So for everything that I have talked about today, all
territories and Governments will need to be important partners
and factored in.
Senator Rosen. Well, thank you. Well, that leads me to the
last question we have as a great segue, so I appreciate it. I
want to have you just talk about innovative ways that you might
imagine that promotes international travel. What are some of
the innovative platforms you and your team, you have been
thinking of to really promote this? It is so exciting.
Everybody loves to travel.
Like I said, so many wonderful places in the United States,
of course, and around the world. And is this a place where you
plan to leverage a public-private partnership? So tell us what
you and your team are thinking of and give us a little peek
into that?
Mr. Harris. Thank you, Chair Rosen. I always enjoy watching
the Subcommittee as well and individual Senators touting their
states and bragging. It is very easy to be passionate about
what we are talking about.
And what I am trying to do with my team and working with
Brand USA, the public-private partnership on marketing the
United States, is bring that passion to a coherent story of
everything that is on offer here, including across rural,
urban, and underserved communities and the like.
And Brand USA, thank you to Congress again for the
emergency funds. The $250 million will be critical for them
building up this marketing and putting more products on offer.
They are being quite innovative as well.
One example that they were referencing to me the other day
was hiring certain influencers and allowing them to be able to
take trips through some of the less visited parts of the United
States and to be posting and telling the stories of these
travel destinations that have received less media coverage or
that are lesser known.
That is just one of many ways in highlighting State
specific territories, specific offerings. I think, Chair Rosen,
the idea here is put forward an ambitious goal and make sure
that we are all bringing every tools that we have to bear.
Public, private partnerships, and working with industry,
and those ideas, and that ongoing collaboration is going to be
absolutely essential to success, as will be working with you
and your staffs too.
Senator Rosen. Well, thank you. I can tell you are exactly
right. We have a lot of fun on this committee because
everybody, we have competition between the states and all the
great fun things that we have.
Usually Florida has pretty much everything, but you don't
have skiing. So, we get to win out on that. They have water
skiing. So it just goes to show how important this is. A few
alligators. That is right. We have to be careful of those. But
before I--we thank you again for your time and your team's
time.
I really think one thing I forgot to mention is how the
bipartisan infrastructure law, increasing that broadband all
across this country, particularly in our small and rural
communities. Like I said, we have some of the darkest skies in
the center of Nevada. You can see the Milky Way. I know
everyone has seen those great telescope pictures that were
published yesterday looking out into the universe.
And so it is really important that we have this broadband
strategy. So I know that is going to be a big part of your
marketing. So, Mr. Harris, thank you so much for your time
today, for your team's efforts. We look forward to having you
back and seeing how we are going to work together on this.
Mr. Harris. Thank you. Thank you again for your leadership
and commitment on this issue. I welcome the opportunity at any
point.
Senator Rosen. Thank you.
Senator Scott. Good job.
Senator Rosen. Great job. And so now we are going to go to
our second part of the panel who is here virtually with us
today. And I would first like to introduce Mr. Bill Hornbuckle.
He is President and CEO of MGM Resorts International. Like I
said, testifying remotely, so you will see him on the screen
from beautiful Las Vegas.
Mr. Hornbuckle serves as the Chair of the U.S. Travel and
Tourism Advisory Board, which is the advisory body to the
Secretary of Commerce on matters relating to the travel and
tourism industry in the United States. Under his leadership,
the Advisory Board provided critical input to the Department on
a National Travel and Tourism Strategy that we are reviewing
today.
A veteran of the hospitality industry before taking over as
CEO, Mr. Hornbuckle was acting CEO and President of MGM Resorts
International, and prior to that served as Chief Marketing
Officer of MGM Resorts International from 2009 to 2012. From
2005 until August 2009, he served as President and Chief
Operating Officer of Mandalay Bay Resort and Casino.
He also previously served as President and Chief Operating
Officer of MGM Resorts International Europe, where he worked on
the development of the company's operations in the United
Kingdom.
Mr. Hornbuckle is also a pillar of the Nevada community,
not only because he leads our state's largest private sector
employer, but also because of his work to give back to our
great state, from education initiatives to serving on the Board
of Three Square, a food bank in southern Nevada that is the
area's largest hunger relief organization.
Mr. Hornbuckle, thank you so much for testifying today, for
your work to promote travel and tourism, and revive this key
industry in the wake of the pandemic. I recognize you for your
opening remarks, and I look forward to your insight on the new
travel and tourism strategy.
STATEMENT OF WILLIAM ``BILL'' HORNBUCKLE,
PRESIDENT AND CHIEF EXECUTIVE OFFICER,
MGM RESORTS INTERNATIONAL; CHAIR, U.S. TRAVEL
AND TOURISM ADVISORY BOARD
Mr. Hornbuckle. Thank you, Chair Rosen. And good morning,
everybody, Ranking Member Scott and members of the
Subcommittee. Again, I want to thank you all for allowing me to
present the video conference today.
Again, I am Bill Hornbuckle, Chair of United States Travel
and Tourism Advisory Board, otherwise known as TTAB, and CEO
and President of MGM Resorts International. The TTAB represents
a diverse range of travel and tourism organizations, including
private sector CEOs, State tourism officers, and destination
marketing leaders.
We advise Secretary of Commerce on travel related
Government policies to ensure the United States remains the
preeminent destination for international travel and tourism.
The 2022 National Travel and Tourism Strategy lays a strong
foundation for the travel industry's recovery and future
growth.
The strategy focuses on four pillars: promoting the U.S. as
a travel destination, facilitating travel to and within the
United States, ensuring a diverse, inclusive, and accessible
tourism experience, and fostering resilient and sustainable
travel and tourism.
The strategy established a very bold goal, bringing 90
million international visitors to the United States by 2027, up
from the 79.4 million in 2019. Meeting this goal will generate
over $279 billion in annual economic activity. Achieving the
aims of the strategy requires engagement and cooperation from
public and private sectors. Together, our priority must be to
provide positive visitor experiences.
From my perspective as Chair of TTAB and as a travel
industry leader, I believe there are three essential elements
that define a competitive travel experience. It must be
welcoming. It must be accessible. And it must be seamless.
Let's start with welcoming. Travelers to the U.S. can enjoy a
breadth of destinations representing the diversity of America,
its people, its natural wonders, and its cultural traditions.
This diversity is a unique asset and competitive advantage.
Therefore, the strategy underscores the need for the travel
industry to closely partner with State, local, and tribal
Governments to promote a diverse variety of experiences to
international visitors. The strategy also recognizes that
attracting and retaining a diverse workforce is indispensable
to welcoming travelers.
Stronger recruitment, retention, and career pathway
programs for women and people of color are essential to
building on that workforce. At MGM Resorts, the company that I
proudly get to run, we have long prioritized such investments
in majority minority communities where we operate like Prince
George's County, not far from you there in D.C.; Springfield,
Massachusetts; and Detroit, Michigan.
We are proud of our workforce development and training
efforts that create stronger local employment pipelines, and we
intentionally design experiences to immerse regional and
international guests alike in diverse architecture, culture,
and cuisine.
Accessible travel means addressing the impact of climate
change, which threatens availability in many iconic
attractions. Recent flooding in Yellowstone and record low
levels in Lake Mead highlight these challenges. This strategy
prioritizes sustainable practices and environmental stewardship
to ensure our national treasures can continue to be responsibly
shared with our visitors.
Accessibility also means that our Nation's infrastructure
in support of travel and tourism. I applaud the
Administration's effort to pass the $1.2 trillion bipartisan
infrastructure law. And as our country begins investing the
billions of infrastructure dollars authorized by law, I hope
that we will consider what we must do to support our travel and
tourism infrastructure as well.
States and communities across the country depend on the
travel and tourism economy, and visitors and employees alike
must have reliable modes of transportation around these
destinations. Consider Interstate 15 into Nevada, California
border, where last Thanksgiving travelers faced a 20 mile
backdrop.
Expanding that section by 15 is the kind of much needed
investment in high performing travel infrastructure that will
be foundational to our industry's success. Finally, travel must
be seamless. Technology and infrastructure play an enormous
role in enhancing the overall ease and enjoyment of travel. The
entire travel industry is innovating.
Companies like ours are investing significantly in digital
platforms to deliver speed, convenience, and personalized
service. But we alone cannot achieve the transformation needed
to make travel more seamless. The strategy calls for Federal
investments to upgrade the travel experience, streamlining the
security process, and preparing for a new era of digital IDs,
the new digital equipment, and new processes for the CBP and
the TSA.
Taken together, the recommendations of the strategy are
essential to the economy and to American workers. Working
together, Government and the private sector can assure a highly
competitive travel future, one that is welcoming, accessible,
and seamless, and focused squarely on delivering growth. Thank
you, and I look forward to your questions.
[The prepared statement of Mr. Hornbuckle follows:]
Prepared Statement of William ``Bill'' Hornbuckle, President and Chief
Executive Officer, MGM Resorts International; Chair, U.S. Travel and
Tourism Advisory Board
Chair Rosen, Ranking Member Scott, Members of the Subcommittee:
I'm Bill Hornbuckle; chair of the United States Travel and Tourism
Advisory Board (TTAB) and President and CEO of MGM Resorts
International. The TTAB represents a diverse range of travel and
tourism organizations, including private sector CEOs, state tourism
officers, and destination marketing leaders. We advise the Secretary of
Commerce on travel-related government policies ``to ensure the United
States remains the preeminent destination for international travel and
tourism.''
The 2022 National Travel and Tourism Strategy lays a strong
foundation for the travel industry's recovery and future growth. The
Strategy focuses on four pillars: promoting the U.S. as a travel
destination; facilitating travel to and within the United States;
ensuring a diverse, inclusive, and accessible tourism experience; and
fostering resilient and sustainable travel and tourism.
The Strategy establishes a bold goal: bring 90 million
international visitors to the United States by 2027--up from 79.4
million in 2019. Meeting this goal will generate $297 billion in annual
economic activity.
Achieving the aims of the Strategy requires engagement and
cooperation from public and private sectors. Together, our priority
must be to provide a positive visitor experience. From my perspective
as chair of the TTAB and as a travel industry leader, I believe there
are three essential elements that define a competitive travel
experience: it must be welcoming, accessible, and seamless.
Let's start with welcoming. Travelers to the U.S. can enjoy a
breadth of destinations representing the diversity of America--its
people, natural wonders, and cultural traditions. This diversity is a
unique asset and competitive advantage. Therefore, the Strategy
underscores the need for the travel industry to closely partner with
state, local, and Tribal governments to promote a diverse variety of
experiences to international visitors.
The Strategy also recognizes that attracting and retaining a
diverse workforce is indispensable to welcoming travelers. Stronger
recruitment, retention, and career pathway programs for women and
people of color are essential to building that workforce.
At MGM Resorts, we have long-prioritized such investments in
majority-minority communities where we operate, like Prince George's
County and Detroit. We are proud of our workforce development and
training efforts that create a stronger local employment pipeline. And
we intentionally design experiences to immerse regional and
international guests alike in diverse architecture, culture, and
cuisine.
Accessible travel means addressing the impact of climate change,
which threatens the availability of many iconic attractions. Recent
flooding in Yellowstone and record low water levels in Lake Mead
highlight these challenges. The Strategy prioritizes sustainable
practices and environmental stewardship to ensure our national
treasures can continue to be responsibly shared with visitors.
Accessible also means that our Nation's infrastructure must support
travel and tourism. I applaud the Administration's efforts to pass the
Bipartisan Infrastructure Law. As our country begins investing the
billions of infrastructure dollars authorized by this law, I hope that
we will consider what we must do to support our travel and tourism
infrastructure, as well. States and communities across the country
depend on the travel and tourism economy and visitors and employees
alike must have reliable modes of reaching these destinations.
Consider Interstate 15 at the Nevada-California border, where last
Thanksgiving, travelers faced 20-mile back-ups. Expanding that section
of I-15 is the kind of much-needed investment in high-performing travel
infrastructure that will be foundational to our industry's success.
Finally, travel must be seamless. Technology and infrastructure
play an enormous role in enhancing the overall ease and enjoyment of
travel.
The entire travel industry is innovating. Companies like mine are
investing significantly in digital platforms to deliver speed,
convenience, and personalized service. But we alone can't achieve the
transformation needed to make travel more seamless. The Strategy calls
for Federal investments to upgrade the travel experience, streamlining
the security process, and preparing for a new era of digital IDs, with
new digital equipment and new processes for CBP and TSA.
Taken together, the recommendations of the Strategy are essential
to the economy and to American workers. Working together, government
and the private sector can assure a highly competitive travel future--
one that is welcoming, accessible, and seamless--and focused squarely
on delivering growth.
Thank you, and I look forward to your questions.
Senator Rosen. Well, thank you, Bill. I am going to turn it
over to Senator Scott to introduce our witness here, and next
witness here in person, Brad Dean. Senator.
Senator Scott. Thanks, Chair Rosen. I would like to welcome
Mr. Brad Dean to the Subcommittee. Mr. Dean is the CEO of
Discover Puerto Rico. Anybody that hasn't been to Puerto Rico,
you should go. It is a beautiful place with wonderful people.
But Discover Puerto Rico is an organization that promotes
tourism to foster economic growth through the island of Puerto
Rico.
Mr. Dean got his start in the great State of Florida and
did a great job there and has led a successful career in
championing tourism in Myrtle Beach and now Puerto Rico. He is
also the Vice Chair of the United States Travel and Tourism
Advisory Board, which played a large part in crafting the 2022
travel and tourism strategy that we are discussing today.
We look forward to your testimony about the importance and
success of tourism in the great island of Puerto Rico.
STATEMENT OF BRAD DEAN, CEO, DISCOVER PUERTO RICO AND VICE
CHAIR, TRAVEL AND TOURISM ADVISORY BOARD
Mr. Dean. Thank you. Good morning. Buenos dias. I am Brad
Dean, CEO of Discover Puerto Rico and Vice Chair of the Travel
and Tourism Advisory Board. Thank you, Chair Rosen, and thank
you, Ranking Member Scott, for the opportunity to come before
you today to address the 2022 National Travel and Tourism
Strategy.
In our role as an advisor to the Department of Commerce,
the Travel and Tourism Advisory Board has offered numerous
recommendations that positively impact our travel and tourism
industry nationwide, and many of those recommendations have
made it into the strategy.
I can confirm that the process was collaborative,
inclusive, and involved a diverse array of perspectives from
both the public and the private sector. I commend Secretary
Raimondo for her leadership and vision in establishing this new
strategy and also for being a champion of the industry within
this Administration.
Also want to thank Assistant Secretary Harris, the
International Travel Administration and International Travel
and Tourism Office staff for their work, as well as the Tourism
Policy Council, and of course, our TTAB colleagues, especially
our Chair, Mr. Hornbuckle, for the exceptional work and
dedication they have shown.
The organization I lead, Discover Puerto Rico, is a public,
private partnership created in 2018 to lead a recovery of
tourism throughout the Commonwealth of Puerto Rico following
the devastation wrought by Hurricanes Irma and Maria. To the
surprise of many, Puerto Rico began with an amazing recovery, 2
years, in fact.
And then 2020 arrived and we started 2020 with a successive
string of earthquakes, followed by a global pandemic. Yet we
emerged from the depths of this crisis reaching all-time record
levels of performance in terms of tourism revenues, taxes
collected, and most importantly, more people employed in
leisure and hospitality than ever before in our industry.
And through the first 6 months of this year, we are on pace
to set even new records and greater heights in travel and
tourism. In our island, we have relied upon travel and tourism
to strengthen the Commonwealth of Puerto Rico as we transition
from merely surviving to thriving.
Puerto Rico in many ways is a model for the kind of
progress that our Nation's travel and tourism industry must
pursue as we seek not to simply recover to pre-pandemic levels
of commerce, but rather build back better, stronger, more
competitive, and more resilient.
And it is with this perspective that I evaluate and
consider the National Travel and Tourism Strategy. This new
strategy is broad, bold, and it is ambitious, laying out a
roadmap to accelerate travel's recovery and reach 90 million
international visitors by the year 2027.
Because the national strategy is so broad, I think it is
imperative that Congress and the Administration focus on key
priorities to ensure that we accomplish the goals in this
strategy. And when it comes to promoting the United States as a
travel destination, Congress and the Administration are to be
commended for reauthorizing and fully funding Brand USA, our
highly impactful and very efficient national destination
marketing organization.
A remarkable example of what can be accomplished through
public, private partnerships. We now need to consider
additional measures to ensure that we meet the goals set forth
in the strategy. For example, leisure travel has enjoyed a
robust pace of recovery. Business travel still lags behind.
The Federal Government should build upon the success
achieved with the EDA grants for tourism within the American
Rescue Plan and consider a second round of grants specifically
targeted at reviving the meetings and conventions travel
segment.
When it comes to facilitating travel throughout the United
States, wait times for visitor visas, which in some countries
have recently exceeded 380 days, are a major impediment to
growing international inbound travel.
The Congress and the Administration should certainly take
necessary steps to modernize and improve visa travel
processing. Our Nation's infrastructure is, of course, the
backbone of the travel and tourism industry.
Yet this is one area where nationally our competitiveness
has waned. Congress and the Administration should target
infrastructure dollars toward the travel industry's most
pressing industry's needs, and the Department of Transportation
should quickly update its national travel and tourism
infrastructure strategy.
One of the most pressing challenges faced by our industry
is the lack of available workforce. In Puerto Rico today, we
employ 86,250 American citizens in leisure and hospitality, and
yet many businesses are still understaffed. So when record
employment is not enough, it speaks to the significant
challenge we face in workforce.
Of course, the private sector bears a lot of responsibility
for building that competitive, diverse, and inclusive
workforce, but there are a number of things the Federal
Government can do to assist in that process.
The development of this new National Travel and Tourism
Strategy is an important step forward in building a more
resilient, sustainable, robust, and highly competitive travel
and tourism industry for the future.
The bold agenda laid out in this new strategy offers a
pathway forward to not simply recover, but to do for our Nation
what travel and tourism has done for the island of Puerto Rico,
transforming us from surviving to thriving with record levels
of visitation, spending, and employment.
Again, I would like to thank Subcommittee Chair Rosen,
Ranking Member Scott, Chair Cantwell, Ranking Member Wicker,
and all of the Subcommittee members for not just holding this
important hearing, but for your support for our Nation's travel
and tourism industry.
I am confident that together we can ensure that the best
days of our travel and tourism industry lie before us and not
behind us, and I look forward to answering your questions.
[The prepared statement of Mr. Dean follows:]
Prepared Statement of Brad Dean, CEO, Discover Puerto Rico
and Vice Chair, Travel and Tourism Advisory Board
Subcommittee Chair Rosen, Ranking Member Scott, Chair Cantwell,
Ranking Member Wicker, and members of the subcommittee, I'm Brad Dean,
CEO of Discover Puerto Rico and the Vice Chair of the Travel and
Tourism Advisory Board (TTAB). Thank you for the opportunity to appear
before you today to address the 2022 National Travel and Tourism
Strategy (``Strategy'').
The TTAB serves as the advisory body to the Secretary of Commerce
on matters related to America's travel and tourism industry. Over the
past year, the TTAB's efforts have focused on advising and supporting
the Department of Commerce in various matters related to travel and
tourism.
The organization I lead, Discover Puerto Rico, is a public-private
entity created in 2018 to help shape and lead a recovery of tourism in
the Commonwealth of Puerto Rico following the devastation wrought by
Hurricanes Irma and Maria, which occurred nearly five years ago. To the
surprise and amazement of many, Puerto Rico's tourism industry
recovered in just two years after those hurricanes but, of course, like
our counterparts worldwide, we were severely impacted by the global
pandemic. In fact, our 2020 began with several successive earthquakes
followed by the pandemic. Yet as we emerged from the depths of that
crisis, the worst ever in the history of our industry, Puerto Rico's
tourism industry set all-time records in 2021, with more visitors, more
tax collections and (perhaps the most important statistic of all) more
people employed in leisure and hospitality than ever before in our
history. And, through the first six months of 2022, we are on pace to
reach even greater heights this year. In an island that is no stranger
to adversity, we have relied upon travel and tourism to strengthen the
Commonwealth of Puerto Rico as we transition `from surviving to
thriving'.
It is with this perspective that I earnestly study and evaluate the
strategies and tactics identified in the Strategy.
National Travel and Tourism Strategy
First and foremost, I commend Secretary Raimondo for her leadership
and vision to establish a new national strategy, and for being an
outspoken champion for travel and tourism within the administration.
I'd also like to thank Assistant Secretary Harris, the Tourism Policy
Council, and the leadership and staff of the International Trade
Administration (ITA) and the National Travel and Tourism Office for
their work to craft the Strategy. Last, but certainly not least, I'd
like to thank my TTAB colleagues, especially our Chair Mr. Bill
Hornbuckle, who joins me here today, for the time and expertise they
contributed to this important effort.
Over the past year, the TTAB developed seven sets of
recommendations to positively impact travel and tourism, covering
topics such as COVID-19 recovery, national visitation goals, workforce,
technology, and climate change.\1\ Several of the TTAB's
recommendations were included in the final Strategy, and I can
confidently say that the process has been collaborative, inclusive and
thorough--bringing together diverse perspectives from across the public
and private sectors.
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\1\ https://www.trade.gov/travel-and-tourism-advisory-board-
recommendations-0
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The Strategy lays out a roadmap to accelerate travel's economic
recovery and build a more sustainable, inclusive, resilient, and
globally competitive industry for the future. The strategy also
establishes a national goal of welcoming 90 million international
visitors who will spend an estimated $279 billion annually by 2027.
To achieve these goals, the Strategy is organized around four
pillars:
Promoting the United States as a travel destination;
Facilitating travel to and within the United States;
Ensuring diverse, inclusive, and accessible tourism
experiences; and
Fostering resilient and sustainable travel and tourism.
Within these pillars, the plan describes 21 separate strategies and
more than 100 identified actions that the Federal government can take.
Analysis, Priorities, and Next Steps
The timing of this new Strategy could not come at a more important
time, as we should not simply seek to return to pre-pandemic levels
but, rather, aim to accomplish nationally what the people of Puerto
Rico have recently accomplished: rising up in the face of adversity,
building forward bigger, better and stronger, using the power of travel
and tourism to spur economic growth and create opportunities for
Americans in all 50 states and every U.S. jurisdiction.
The Strategy is broad, bold, and ambitious. There is, perhaps, no
more ambitious goal stated in the Strategy than the new national goal
of welcoming 90 million annual international visitors by 2027, which
aligns with TTAB's recommendations and would ensure the U.S. regains
its global market share of international visitation.
Considering the profound reduction in international travel over the
past two years, that goal might appear to be unrealistic. Admittedly,
to grow from 22 million international visitors in 2021 to 90 million in
2027 is a huge leap which requires a record pace of growth never before
seen at the national level. Yet recent research reassures us that
international visitors are eager to visit the United States and that
recovery is already underway.\2\ In my island of Puerto Rico, we
welcomed more than twice the number of international visitors in the
first quarter of 2022 as compared to 2021,\3\ and we expect that
recovery pace to accelerate now that COVID-19 testing for inbound
international arrivals has been lifted. We must now take the necessary
steps to convert traveler interest into commerce.
---------------------------------------------------------------------------
\2\ International Air Transport Association (IATA), Passenger
Forecast March 2022.
\3\ Airline Data Inc., March 2022 International Passenger Analysis.
---------------------------------------------------------------------------
Because the Strategy is so broad, one key challenge will be to
identify areas of focus and specific next steps. To overcome this
challenge, I believe the administration, Congress, and the travel and
tourism industry should focus on a few key areas and take several
specific steps this year.
When it comes to promoting the U.S. as a travel destination, the
United States Congress and the administration are to be commended for
taking a first and very important step that makes recovery possible:
reauthorizing and fully funding Brand USA, the Nation's destination
marketing organization. The results produced by Brand USA prior to the
pandemic have proven the efficiency and unrivaled impact of this
public-private partnership and I firmly believe full recovery of
international inbound travel would not be possible without a fully
funded Brand USA. In addition, the Federal government should:
Launch a second round of Economic Development Administration
(EDA) grants specifically targeted at reviving the meetings,
conventions and events travel segment. While leisure travel has
enjoyed a robust recovery, the meetings, conventions and events
segments lag behind. The Travel, Tourism and Outdoor Recreation
grants administered by the EDA under the American Rescue Plan
have enabled communities throughout our Nation to revive travel
and tourism and are an important part of the robust leisure
travel recovery. Learning from the successes of this grant
program, the government should consider launching a second
grant program designed to accelerate the recovery of meetings,
conventions and events.
Focus on facilitating state, local, territory and tribal
bids for large-scale international events. In 2021, domestic
and international business travel spending on large meetings
and events was down a startling 70 percent compared to 2019.
Unfortunately, U.S. bids for large international events are
often unsuccessful due to concerns about lengthy visa
processing times, long wait-times at customs, or inadequate
infrastructure.
The administration can commit visa processing resources, customs
staffing, or infrastructure investments to support large
international events that will be hosted in the U.S. or to make
U.S. bids for future events more competitive. Congress can
provide additional funding for ITA, Customs, and State to
support facilitation services.
When it comes to facilitating travel to and within the United
States:
Focus on reducing visa wait-time to an average of 15 days or
less in the top inbound markets that require a visitor visa. Of
the top inbound markets that require a visitor visa and are
able to travel to the U.S., Brazil, Mexico, and India account
for 77 percent of the visitors. As of May, average wait-times
in these three countries exceeded 380 days. To achieve the
national goal of welcoming 90 million international visitors by
2027, the administration should focus first on reducing average
visa wait times to less than 15 days in these three markets\4\:
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\4\ Note: China is the second largest inbound travel market as
measured by visitor volume. However, we did not include China in this
initial list of recommended countries because the Chinese government
still severely restricts outbound travel by Chinese citizens.
Congress and the administration should also take steps to modernize
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and improve visa processing, including:
Increased staffing at the embassies and consulates in
high-priority countries.
Conducting group processing for large tours and events
being held in the U.S.
Offering expedited visa processing fees for B1 and B2
applicants
Waiving B1 and B2 visa renewal interviews for low-risk
applicants.
Enacting legislation to authorize the use of video
conferencing technology for low-risk renewals.
Seek a secure, seamless, touchless travel process. Beyond
visa processing, we should aspire to develop a best-in-class
system of travel facilitation and processing that optimizes the
use of technology, protects personal privacy and ultimately
delivers a safe, seamless, and efficient travel process by
eliminating unnecessary touch points. This will require
extensive collaboration with private sector partners, but the
Federal government must play a key role. Beyond cost and time
savings, reducing person-to-person contact has important public
health benefits, as we observed during the pandemic.
Target infrastructure dollars towards the travel industry's
most pressing infrastructure needs. The Infrastructure
Investment and Jobs Act can transform how Americans move and
how destinations compete in the decades to come--but only if
the travel industry has a seat at the table, identifies its
investment priorities, and actively seeks funding.
The administration should proactively develop guidance for State
Tourism Offices, regional tourism alliances, local destination
marketing organizations, and travel businesses that identifies
funding opportunities for investments in travel mobility,
resiliency and sustainability.
The Department of Transportation should promptly update its
national travel and tourism infrastructure strategy and appoint
a Chief Travel and Tourism Officer to promote travel related
investments and policies across all modes.
When it comes to ensuring diverse, inclusive, and accessible
tourism experiences, the Strategy prioritizes this as a primary
objective necessary to extend the benefits of travel to all communities
throughout the United States. In Puerto Rico, we recognized early on
that to differentiate our island from the competition and position
Puerto Rico as the premier leisure and business travel destination in
the Caribbean region, we must rely upon something more than sandy
beaches and warm weather. Promoting the rich, vibrant culture of Puerto
Rico and a myriad of unique, memorable experiences while ensuring we
remain a welcoming, inclusive island has provided a foundation for a
brand marketing strategy that has grown annual visitation to record
levels. In fact, this has been so successful our marketing strategy has
evolved to positioning Puerto Rico as not simply a vacation destination
but, more so, a fun, vibrant, passionate lifestyle through an open
invitation to travelers to Live Boricua. From our experience, I can
attest to the remarkable potential of offering diverse, inclusive and
accessible tourism experiences, but I must also acknowledge that we
could not have accomplished this without unwavering support and
widespread cooperation from our partners throughout the Commonwealth of
Puerto Rico, including businesses, municipalities and the central
government. If we are to leverage this same type of effort nationally,
it will require widespread collaboration on numerous fronts.
Additionally:
Congress and the administration should focus on restoring a
diverse and inclusive travel workforce. Like the rest of the
economy, the leisure and hospitality sectors are experiencing
significant workforce shortages. Filling open positions in our
industry was not easy before the pandemic, but it's proving to
be even more challenging today. In Puerto Rico, we currently
employ 86,250 U.S. citizens\5\ in leisure and hospitality, an
all-time record for our island. Yet local businesses regularly
tell me they are still understaffed. When record employment is
not enough, it's clear just how deep and expansive this
workforce challenge is.
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\5\ Bureau of Labor Statistics, May 2022.
Today, there are 1.5 million jobs open in the leisure and
hospitality sector, which accounts for one-out-of-eight jobs
open nationwide. For every 100 jobs that are open nationwide,
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there are only 48 Americans looking for work.
The administration can build a more diverse, inclusive, and robust
travel industry workforce by taking steps to:
Target Department of Labor and Department of Commerce
grants towards workforce recruitment and apprenticeships in
the travel industry.
Expand access to and prioritize efficient processing
for temporary work visas, especially in the top countries
for H-2B and J-1 visas.
Collaborate with the private sector to develop and
utilize career education content that can be useful to
young Americans evaluating future career options.
Congress can help by enacting legislation to expand the number of
available temporary work visas, especially the H-2B and J-1
programs.
When it comes to fostering resilient and sustainable travel and
tourism:
Focus on reducing the carbon intensity of transportation
fuels. According to the World Travel and Tourism Organization,
more than 50 percent of emissions from travel and tourism come
from transportation.
The administration can focus on expanding the availability of EV
charging stations at popular travel destinations and
attractions by targeting Community Grants towards popular
travel destinations and attractions, such as convention
centers, hotels, National Parks, entertainment venues, and
other businesses that travelers frequent.
Congress can also enact legislation to expand and
increase the Alternative Fuel Infrastructure Tax Credit
(Section 30C credit) through 2031.
Congress can also establish a $1.50-$2.00 per gallon
blender's tax credit for SAF that achieves at least a 50
percent reduction in lifecycle greenhouse gas (GHG)
emissions compared to conventional jet fuel. The World
Economic Forum and others have called SAF ``the only viable
option to decrease emissions in the aviation sector.''
i
---------------------------------------------------------------------------
\i\ World Economic Forum, ``Ten Critical Insights on the Path to a
New Zero Aviation Sector,'' October 2021. https://
missionpossiblepartnership.org/wp-content/uploads/2021/10/MPP-Aviation-
Transition-Strategy-2021.pdf
Congress can also enact legislation to increase the
Section 179D deduction for energy efficiency projects that
enable a building to acquire LEED Platinum certification,
currently capped at $1.88 per square foot.ii
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\ii\ Office of Energy Efficiency & Renewable Energy, ``179D
Commercial Buildings Energy-Efficiency Tax Deduction.'' https://
www.energy.gov/eere/buildings/179d-commercial-buildings-energy-
efficiency-tax-deduction
Engage small businesses and seek community-based solutions.
While our industry is becoming more aware of its environmental
impact, many small businesses still lack the expertise to
effectively address complex issues such as sustainable
development, climate impact or carbon emissions. Providing
meaningful, reliable baseline measures and assisting small
businesses by identifying actionable steps will be necessary if
we are to make broadscale progress. Ultimately, these efforts
must extend well beyond the C-suite into the local networks of
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citizens, governments and tourism-related business operators.
In Puerto Rico, El Yunque, the only tropical rainforest in the U.S.
Forest Service System, is a treasured asset and our most
visited attraction. Innovative leadership by the local U.S.
Forest Service Office is making major strides of progress in
sustainable tourism, balancing economic growth with eco-
friendly travel practices and community impact. By addressing
basic issues such as accessibility and water quality through
local community-based planning, engagement and training, what
began as a quest for sustainable tourism has evolved into
micro-business economic development and more efficient visitor
flows.
Conclusion
The development of the first National Travel and Tourism Strategy
in more than a decade is a necessary step forward in building a more
resilient, sustainable, robust and competitive travel industry for the
future.
It also highlights the need for Congress to enact the Omnibus
Travel and Tourism Act of 2021. Simply put, the Act would:
Ensure national travel and tourism strategies are
consistently developed and carried out across administrations;
Establish an Assistant Secretary of Travel and Tourism
charged with carrying out the national strategies on an annual
basis and coordinating travel policies across the Federal
government; and
Provide permanent statutory authority for the TTAB to
solidify this productive public-private-partnership.
I'd like to thank Subcommittee Chair Rosen, Ranking Member Scott,
Chair Cantwell, Ranking Member Wicker, and all subcommittee members for
holding this important hearing and for your continued support of
America's travel and tourism industry. Together, I believe we can
ensure that the best days of our travel and tourism industry lie before
us, and not behind us. I look forward to answering your questions.
Senator Rosen. Well, thank you. I am confident that they
lied before us as well, and I know Senator Scott is confident
of that. And so as we think about assessing the national
strategy, the Tourism and Travel Advisory Board, you did
provide key recommendations to the Department of Commerce
during the development of the National Tourism and Travel
Strategy that we have just been discussing with Assistant
Secretary of Commerce Harris.
And we have also been talking about how it might be
implemented. So before I get into specific questions about
particular aspects of the strategy and how it can revive our
tourism economy, I would really like to hear from both of you
representing the Nation's key private sector tourism
stakeholders on the advisory Boards you oversee, about your
assessment of the Department's plan.
So, Mr. Hornbuckle, what is your overall assessment of the
strategy they put forth? What do you feel are its key strengths
and where do you think it falls short? What else do we need to
include or think about here in Congress? And then, of course,
we will follow up with Mr. Dean.
Mr. Hornbuckle. Thank you, Senator Rosen, for the question.
Let me just echo my thanks to my colleague and ultimately to
Secretary Raimondo and Assistant Secretary Harris. The
collaboration on this has been extensive. It has been
thoughtful. It was taken on through TTAB and others, a great
deal of stakeholder input, and so they ought to be thanked for
that. And generally and overall, the strategy is bold.
When you talk about 90 million visitors by 2027, that will
be upon us quickly. When you think that they took it seriously,
and I think ultimately this committee and the Administration
has taken tourism and travel seriously, obviously, 1 in 20 jobs
in the United States depend on it. And the investment has been
there.
Your support of Brand USA and the $250 million will go a
long way in re-igniting what has been a great tourism story
over the last several decades. A couple of thing I would point,
maybe to point to or point out, focusing on making travel to
and in, and out of the United States, but once you get in, is
critical.
I think you heard it throughout the Assistant Secretary's
comments, my comments, Mr. Dean's comments, you know, making an
easier pathway is essential. You also heard me talk about
investment in infrastructure. There is $1.2 trillion sitting
there making sure that in the instance I gave, whether it is
our I-15 or airports--I recently had the opportunity to go
through Amsterdam Airport and the technology that is deployed
there to get people through that with ease is amazing and
critical.
So I would not necessarily critique it in the context of
what is not there. I think it would be about what gets done. I
think it is an encompassing plan. I think it is a well thought
through plan. I think it is incumbent upon all of us to make
sure we have got the resource, the focus, and the necessary
dedication it needs to implement it, because I think that
becomes the trickier part.
Given the scale and scope, these are not small goals, and
it will take a great deal of focus. So with that, Madam Chair,
I turn the question back to you.
Senator Rosen. Your thoughts on the strategy.
Mr. Dean. As I mentioned earlier, this is a bold, ambitious
strategy. And I am reminded of my grandfather, who was not a
learned man, but maybe one of the wisest people I ever met, who
often reminded me that you always have time for those things
which you place first.
And so to me, the real question is where do we go in terms
of action steps and items, especially in light of the questions
earlier in this hearing about the collaboration that is
required between State, Federal Governments, and the private
sector partners. I think it is absolutely critical that we
build upon the success that Brand USA has already created. The
interest is there, and we are already seeing that with an
amazing body of research that tells us that international
travelers are ready and eager to return to the United States.
And in fact, even in Puerto Rico, in the first quarter of
2022, we welcomed more than twice as many international
visitors as we did a year ago. So that recovery is already
underway. But the visa time processing is going to be a major
impediment going forward. And I think it is important that we--
we consider where we were with the 2012 national strategy,
which reflected the same concern at that time.
And we saw a lot of progress thereafter. I think it is
absolutely important that we focus on those countries where the
greatest lag and short term potential exists. I believe three
out of four potential visa processing opportunities lie within
three countries: Mexico, Brazil, and India. So we should
certainly start there.
I think also in terms of the quick and necessary actions to
accelerate the recovery, it is going to be absolutely
imperative that we look to the second tier and third tier
cities, not just the top tier cities. It's one of the great
benefits of Brand USA is they really level the playing field
and allow all of us to participate.
So I think their plan going forward to promote and expand
travel and tourism, especially with their current innovative
effort of the united stories, telling those amazing stories
throughout the United States, and I think that is particularly
relevant as we think about approaching a very important and
historic milestone, the 250th anniversary of this great Nation.
What an extraordinary opportunity.
All communities, large, small metro world, both in the 50
United States, as well as the other jurisdictions of the U.S.,
to be able to amplify that message and share with the world
what great stories we have, the beautiful places and the
beautiful faces that we offer, making extraordinary travel
experiences.
So for me, the plan is solid. Now we have to take the next
steps to put this plan into action to ensure that we return our
travel and tourism industry to the robust, economic, vibrant
machine it was before.
Senator Rosen. Well, thank you. I share your enthusiasm for
that. And I do think your grandfather was a very wise man.
Those are wise words. I am going to turn it over to Senator
Scott for a round of questioning.
Senator Scott. OK. Thank you, Chair Rosen. Puerto Rico is a
standout destination for tourism in the Caribbean and is a
shining example of economic recovery from not only pandemic, as
you talked about, but also from two large hurricanes. So what--
why don't you talk about what you did and what were the
contributing factors?
Mr. Dean. Thank you, Ranking Member Scott. I would be
remiss if I did not acknowledge the support we received from
Visit Florida, I believe at the time you were Governor. But
Visit Florida, the State of Nevada, the State of California,
Texas, South Carolina, a number of others were actively
involved in helping us create this new public, private
partnership.
And that was particularly important because after decades
of tourism promotion that had been inconsistent, largely due to
the frequent changes in leadership of the Puerto Rico
Government, we finally now have a private sector-led public-
private partnership that is delivering record results, and I
think that was certainly an important step.
But I must admit, I think the real strength and certainty
of the recovery in Puerto Rico is the spirit of strength and
resiliency within the people of Puerto Rico. When you consider
what they have faced over the last six to 7 years, the Zika
virus, hurricanes Irma and Maria, earthquakes, not to mention,
you know, financial challenges and then a global pandemic,
their sense of unity transcends Governmental, political, and
socioeconomic barriers, and that has certainly been the
foundation for the recovery.
I also think that the Beatles said it best, ``we get by
with a little help from our friends.'' We have had
extraordinary support from the Federal Government, which
continues on through this day. We have had partners, not only
the State tourism levels, but at Brand USA, which dedicated a
lot of time and resources to that.
And I have to acknowledge one of the most successful
programs that helped fuel that recovery was a community
development block grant, the CDBG disaster recovery funds that
HUD authorized. The final estimate of the return on investment
for the Federal Government after it was all said and done was
$106 of direct economic impact for every Federal dollar
invested.
A great ROI not only for the island of Puerto Rico and for
the Federal Government, but I think it really comes down to the
character and resiliency of the people of Puerto Rico, the
innovative model that we have been able to apply, which
promotes the rich, vibrant culture of the island, and then the
partnerships both in the private, public sector which has
allowed us to set a record pace for recovery in travel and
tourism.
Senator Scott. So in Florida, I think one out of every
about six jobs is tied to tourism. What is it like in Puerto
Rico and how important is tourism to the workforce in Puerto
Rico, and the base of taxes for the state and her island
Government?
Mr. Dean. When you consider, you know, pre-pandemic, a $9
billion economic engine that employs 86,000 people and
generates over $760 million of taxes, to an island that
admittedly has faced its fair share and then some have
financial difficulties, I don't think we can even begin to
properly state, at least I can't, the true value of travel and
tourism. But I think oftentimes, Senator, we in the industry
perhaps do ourselves a bit of a disservice by always pointing
to the numbers, jobs and taxes and revenues are important.
But I think travel and tourism is more effective and
impactful in Puerto Rico, and I would say the same for my peers
and communities throughout the 50 states. When you think about
travel and tourism, it is not simply a generator of economic
activity, but oftentimes the first date for relocation and
commercial investment.
Before people invest in your community and create jobs,
they experience your hotels, your restaurants, your taxicabs.
And we have seen even by using the Longwood's Heywood--Halo
study to measure the impact of travel and tourism advertising,
how much more likely people are to think favorably about your
community or in this case, your island, through travel and
tourism marketing.
It reminds us of the sheer importance of this industry. It
is not lost upon me, and I am sure not upon you or any member
of this subcommittee, that there is no other industry in the
United States of America that on any given day employs more
people, speaks to more people, and serves more people than the
travel and tourism industry.
So when you consider that, the importance of travel and
tourism in Puerto Rico is far beyond my ability to describe in
words.
Senator Scott. So what--so in Florida, what you just talked
about was absolutely true. You know, generally no one moves to
Florida before they come as a tourist first, and then they
move, possibly themselves, or a business. So we sold a lot of
homes that way. Does that happen in Puerto Rico?
Mr. Dean. It certainly does. And we have seen that not only
in the metropolitan area, but in some of the outlying areas.
In fact, like your states of Florida and Nevada and I am
sure others represented on this subcommittee, oftentimes that
demand for housing that starts with a visitor who is now
relocating or investing maybe a second home or rental property
often competes with the housing needed for local residents,
which I think underscores the importance of affordable housing
strategies in all that we do.
But we have definitely seen both before and after the
pandemic, the impact that travel and tourism has on the real
estate and development industry. And I don't expect that to
slow down anytime soon.
Senator Scott. Thank you. Thank you, Chair.
Senator Rosen. I would like to recognize Senator Sullivan.
Great state of Alaska.
STATEMENT OF HON. DAN SULLIVAN,
U.S. SENATOR FROM ALASKA
Senator Sullivan. Thank you. Well, another great discussion
on the Subcommittee, so I want to thank the Ranking Member and
the Chair. I think this is a--you know, I just wish a lot of
our colleagues could be hearing, Mr. Dean, your discussion.
I never really thought about it that way about, tourism
brings the kind of tip of the spear of investments and buying
homes and a vacation home. That is--obviously that happens in
all of our states. So that is really a great insight. I never
really thought about it that way. I have been someone who has
kind of been thinking about it on the numbers.
And in Alaska, you know, the numbers for us are really big.
It is a big part of our economy like it is for Nevada and
Florida and so many other states. So it also helps us with our
trade deficit. As you know, tourism on our services account
favorably to the goods and service surplus that we need.
I just hosted Ambassador Tai up in Alaska last week, the
U.S. trade rep and kind of walked her through a lot of the
ideas of promoting tourism. So my question for you and Mr.
Hornbuckle is the issue of our Tour Bus legislation that has
within it legislation that I have been pushing for a while, the
Visit America Act.
And I am not a big Government guy. I don't think the
Ranking Member is. I am not sure about the Chair, but either
way. But I do think, to your point, our tourism sector, given
how important it is to the economy of the United States, really
doesn't have a strong, singular voice. Now, I know we just had
Mr. Harris testifying, but if you look at his responsibilities,
I mean, he has a huge portfolio, right.
And tourism is kind of at the bottom. So here is my
question to both of the witnesses. First of all, the Tourism
and Travel Advisory Board I think has done a really good job.
In my legislation, we have two, kind of, things that would, we
think, help make our Government have a more strong, steady
focus, stay on tourism.
Number one, make the Travel and Tourism Advisory Board
permanent. Pretty simple. Keep you guys focused and make sure
you know that you are going to be around for a while. And then
second is, we have this idea of an Assistant Secretary of
Commerce, Senate confirmed, to be focused solely on tourism,
period.
No offense to Mr. Harris, but we want somebody every day to
get up and say, hey, what are we doing for this industry? And
it is important because when you look at, say, most G20
countries, not only do they have that, they all have tourism
ministers, cabinet officials in charge of tourism.
And we don't have anything. We don't even have a Senate
confirmed position. So to you and Mr. Hornbuckle, what would
your views on making the advisory committee permanent, but this
idea of a senior American official who does this every day when
they wake up--Senate confirmed, not Mr. Harris, that is their
only job?
The way most other countries in the world have that.
Actually, like I said, at a cabinet level position. What is
your thought about that? And then Mr. Hornbuckle.
Mr. Dean. I am happy to offer my thoughts, but I will defer
to my Chair, Mr. Hornbuckle to respond first and then I will
follow up after that if that is OK.
Senator Sullivan. OK. Good, sure.
Mr. Hornbuckle. Senator, thank you for your question. Yes
and yes. In the context of, I think the work we have been able
to accomplish, particularly through Secretary Raimondo and now
again, obviously in recent appointment, Assistant Secretary
Harris, has been meaningful. Much like Puerto Rico, Nevada,
where my company employs over 50,000 people in Southern Nevada
alone, we are the industry of the state.
And what happens in our industry happens in the state, and
so goes its economy. And so to the extent that there would be
potentially a Federal position that is appointed by the Senate,
that would be solely focused on an industry that captures 1 in
every 20 jobs and is the lifeblood of maybe a half a dozen
states in this Nation, and is critical, highly supportive of
that.
To the extent, we all do a great job locally, we all do a
great job, generally speaking, in promoting our own tourism,
but the effort, the energy and the coordination it would take
to take, whether it is Federal money through infrastructure or
ultimately even tourism money and focus it and have somebody
who wakes up every day, that work gets focused on, gets
accomplished, it is quite simple. And so we would be highly
supportive of that.
Senator Sullivan. Great. Good. Thank you very much. Mr.
Dean, do you have a--?
Mr. Dean. I would echo what Mr. Hornbuckle said. I
absolutely think this is a necessary and important next step.
When you think about the magnitude of the travel and tourism
industry, the jobs created, the revenues, the taxes, to borrow
from you, to have someone who wakes up every morning asking,
what can we do to take that next step?
And not just on a national scale, but how do we take these
programs and work it through this intricate network of regional
tourism promoters, State tourism organization, destination
marketers. I think having that point person to lead that effort
actually complements the work being done by the National Travel
and Tourism Office and Assistant Secretary Harris.
So I see it as a plus up, certainly not a replacement. And
more so to that point, I am a bit biased because I have served
multiple terms on the Travel and Tourism Advisory Board, but I
do think statutorily guaranteeing this sends a powerful message
to the industry that it is important to engage.
Of course, we have to make sure that the Board continues to
be diverse and inclusive and reaches all different segments of
destinations as well as industry segments, which I think it
currently does in many respects. So I certainly think that is
an important--and I would take it one step further.
My hope is the Department of Transportation will perhaps
follow the same path, update their national travel tourism
infrastructure strategy, and I believe, you know better than I
do, prior legislation actually called for a similar position in
the DOT. In a dream scenario for me, but maybe it is not a
dream because I am speaking to the people who can make this
reality.
I think every major Federal agency should have a top level,
highly placed individual that is there to make certain that the
travel and tourism industry and the Federal Government are
closely aligned. It happens sometimes not efficiently because
we find the right people within the Administration.
But I think having a highly placed leadership position in
major agencies will not only make us more efficient, I think it
would help the industry better liaise with the Federal
Government and I think it would prepare the Federal Government
to be even more impactful in helping grow this important
industry that impacts every community throughout our great
Nation.
Senator Sullivan. Great. And Madame Chair, you know, just
following up on two other points, I think, from this hearing.
One is that, you know, this is also an industry that is so
impactful for states like ours. It is really impactful, but I
think it impacts everybody. And it is also an industry that
everybody supports, right.
Let's face it, there are certain industries, I am a big
energy--my state is a big energy producer. OK, we have got some
colleagues who aren't so, you know, thrilled about producing
oil and gas. I think we need it. I think the men and women who
produce oil and gas are heroic and producing something that we
need and have helped us win wars and make our country strong.
But not everybody is a big supporter. But the tourism
sector, I mean, who is not--what U.S. Senator is not a big
supporter of the tourism sector. That is one. But I think, you
know, just looking at Mr. Harris's portfolio, right, seven
different offices, many of which are very different, trade,
manufacturing.
I mean, so again, no offense to him, but I think the
witness on the first panel almost proves our point, which is
having someone focused on this industry day in and day out,
Senate confirmed so it is a high level position, is good and
helps us compete with other countries who have minister level
Government officials in charge. So hopefully we will keep
moving on this.
Senator Rosen. Thank you, Senator. I appreciate it. I will
tell you, I think everyone on this committee thinks that we
should have a national director for tourism and travel. And I
know that Senator Klobuchar, who I am going to recognize next,
author of Brand USA, of course, 10,000 likes in Minnesota, lots
of things.
As I have said, it is a great committee. We all know all
the wonderful things about our states. Senator Klobuchar, I
would like to recognize you, please.
Senator Sullivan. Madam Chair, I just want to mention, you
know, 10,000 likes in Minnesota. I think I mentioned in the
last hearing, 3 million likes in Alaska. So, I just, I know
Senator Klobuchar likes to----
[Laughter.]
STATEMENT OF HON. AMY KLOBUCHAR,
U.S. SENATOR FROM MINNESOTA
Senator Klobuchar. OK. So, I have heard about this. And I
think we can take this offline for our discussion.
[Laughter.]
Senator Klobuchar. I will note your biggest street in
Anchorage, or at least one of them is called Minnesota Avenue.
Senator Sullivan. That is very true. That is very true.
Senator Klobuchar. That is true. We have a lot of people
going back and forth between our states. But with that, I want
to thank our two witnesses from beautiful places that I have
visited, spent some time in. And I want to, first of all, just
start out. I know a lot of people have mentioned Brand USA and
thank you to the Chairwoman for her leadership on that and so
many other things.
But the Brand USA is a bill that Senator Blunt and I have
long championed, and in March we were able to restore funding
to Brand USA. Mr. Dean, I know you have talked about the
importance of destinations and evening the playing field. Can
you talk about how important it is to keep this going?
Because we have some places that are big destinations that
everyone can afford their own their own public relations and
strategies and ads, but some can't. And it is important to have
a national strategy when it comes to Brand USA. Mr. Dean.
Mr. Dean. Thank you, Senator. I think you have underscored
to me one of the most important and perhaps under-recognized
benefits of Brand USA. We can certainly point to the
efficiency, the return on investment. There is no question our
Nation is getting a great return on its investment through
Brand USA.
But one of the greatest benefits is how Brand USA allows
smaller communities, rural communities, regions that couldn't,
even with the budget, promote themselves around the world. And
we certainly see that in Puerto Rico.
I think to some of the recent international visits that we
were able to attract with influencers and media coming to help
us tell the story of the recovery in Puerto Rico, they are
going to the coffee haciendas in Eduardo and at Juntas. You
might never know they existed if you are an international
visitor, but Brand USA allows us to benefit our industry and
our coffee farmers that way.
They allow us to showcase our communities like Cabo Rojo on
the West Coast, and Ponce, the glorious city on the South
coast. These are unique destinations within the island that
offer an extraordinary opportunity for--to experience the rich,
vibrant culture, to live Boricua, as we like to say. And we
simply could not do that even with a substantial increase in
our budget.
What Brand USA allows us to do, for all of us, is to tell
our stories as part of those united stories and showcase
ourselves to the global travelers that many of us wouldn't be
able to reach otherwise.
So beyond the economic impact, which is substantial and
clearly proven over and over again, I think their ability to
level that playing field, allowing rural communities, second
tier and third tier cities that wouldn't otherwise compete, to
be able to accomplish that.
Senator Klobuchar. Thank you. Now, of course you are
challenging me with all the mention of places in Puerto Rico,
which, as I have said, I have enjoyed your--you know, Mr.
Hornbuckle is going to want to mention every place----
Mr. Hornbuckle. I want to--I promise, I promise----
Senator Klobuchar.--you know, I have probably visited, and
I of course, you are just getting me going to want to mention
Duluth and Lanesboro, and in addition to the Mall of America
and many, many great places in my own state. I want to turn to
something else, and that is the wait times that we are seeing,
long visa wait times as we return to international travel.
And I have appreciated some of the work that has been done
recently to make it easier to travel internationally. You know,
right now, inbound travelers can expect to wait 702 days in
Guadalajara, 354 days out of Brazil, 643 days out of Colombia,
and other things. And these are, of course, the international
travelers, as we all know, bring in, you know, a lot of funds,
and that means good for our jobs and good for our businesses in
the U.S.
I know the Administration is focused on increasing visa
processing capacity by 40 percent in the top countries that
require a visitor visa, including Brazil and India. Either Mr.
Hornbuckle, maybe you can answer this.
Do you see Congress as playing a role in helping to reduce
wait times and increasing processing capacities? And do you
think that would be helpful?
Mr. Hornbuckle. Unequivocally, yes, Senator. Thank you for
the question. Look, we just experienced July 4th in Las Vegas,
not only wait time for visas, but once you have got here to get
through the process, once you landed with another two and a
half hours. And so welcome to Las Vegas.
Welcome to America. Please stand in this line for two and a
half hours. And so, honestly, anything and everything that can
be done not only to continue to fund because resources are
essentially what is behind this, but to create workplace
environments where training is effective and appropriate, where
people want to go to work. We have all gone through TSA.
It is not a pleasant experience for the consumer, probably
for most of the employees. And so to the extent we can put
technology at play, whether it is in pre-visa in some of these
particularly foreign countries, we have an environment that you
may know we operate a couple of properties in Macao and before
the COVID and the ongoing COVID crisis and close down, many,
many, many of those jurisdictions in mainland China were
putting automated visas through.
And so it was simple as getting something on your phone,
and you are pre-qualified, and you literally went through a
process. Technology has impacted and helped our business. We
now have mobile check-ins, something that COVID kind of forced.
And with the reality that, it is 25 percent of the people
who come to one of our resorts and never touch the front desk.
They then use that device for other ways around the resorts.
And ultimately it gives us a connectivity to those people for
marketing to hopefully have them return to us.
And so the essence and the idea that we could start at home
because the trip does start at home, the moment you decide to
go, what is that process, and ultimately elevate a focus on all
of it would be just something that is desperately needed at
this point.
I think it has been mentioned a couple of times, but 700
days for a visa is not acceptable. It is just not. And so----
Senator Klobuchar. Exactly. Just last year, quickly, I
assume workforce shortage as well as we look toward immigration
reform, doing something here to make sure we have workers in
these jobs, would also be helpful in travel and tourism.
Mr. Hornbuckle. Without a doubt. Again, I mentioned a
number earlier. We employ about 62,000 people. We have had in
Las Vegas alone 5,000 job openings since we came out of the
COVID pandemic.
We stabled up the workforce pretty quickly, but now we have
hit a plateau and we have been sitting on a number like that
for better part of a year. It is a couple things. Yes, it is
economics. It is always economics at core. But there is a whole
new mindset around workforce--work life balance.
People in our industry work hard. They work long hours.
They work mostly when people don't want to work, weekends,
nights, holidays. And so training, getting people in. Yes, I
will tell you my story. I literally was a busboy who made it to
CEO. This industry has a lot to offer.
And to the extent we can get people in programs for
training, we do, I think, a fairly good job both in the company
and throughout some of our industries to do that. But we just
need more help.
We need more support, and frankly more resource to put
people into effective training programs that can live and lead
to lifelong careers.
Senator Klobuchar. Exactly. Well, thank you very much to
both of you. And mostly thank you, Senator Rosen, for your
incredible leadership. Thank you.
Mr. Hornbuckle. Thank you, Senator.
Senator Rosen. Thank you, Senator Klobuchar. Senator Scott,
do you have any second round of questions?
Senator Scott. Sure. Well, first off, I want to thank both
of our witnesses for being here. In both of your jobs, one as
Chair and Vice Chair of the U.S. Travel and Tourism Advisory
Board, and in your roles, in your respective roles in your
companies, can you tell us what you are excited about as far as
the strategy and how you will implement it in your different
roles? And so, we will start with Mr. Hornbuckle.
Mr. Hornbuckle. Thank you, Senator, again for the question.
Look, what is amazing to me is the rebound of travel
domestically. Obviously, we have spent a great deal of time
talking about international travel, but we are up from where we
were in 2019. Our resorts are filled principally with domestic
travelers.
And so there is a mindset, whether it is escape, whether it
is a whole new mindset on life given COVID and all that that
has brought emotionally to people in their families, travel is
on--you know, we are on fire in the context of domestic travel.
Our corporate business is coming back.
And now thank you to the Administration and to yourselves
for lifting the testing requirements, our international
business is starting to come back. So I am just very excited
about the notion of travel, the notion of international travel.
Of note, we are about to host next year for the first time
something you enjoy hosting in Florida, F1. That will draw
150,000 visitors, I think, to our community as it does to
Miami. And so those are the kinds of things that excite me. And
so a basic overview.
Senator Scott. Mr. Dean.
Mr. Dean. Ranking Member Scott, I think perhaps what
excites me the most is, I think back over the past couple of
years, the worst crisis ever in the history of this industry.
If you have ever seen the movie, ``It's a Wonderful Life,'' you
remember the character George Bailey, who got to see what the
world was like without him.
And we have had our George Bailey moment. We have seen what
the world is like without travel and tourism. And it wasn't a
pretty picture. I am hopeful that as we emerge from this
crisis, that we have a greater appreciation for the impact of
travel and tourism, not only as a huge economic generator that
creates millions and millions of jobs, but also as an important
source of elevating the profile of our Nation and the
communities therein.
So perhaps a greater appreciation. And that is not just
those in the public sector. That is us is the private sector as
well. I am especially excited when I think back to the last
National Travel and Tourism Strategy in 2012, the kind of
innovation that it spurred.
So I am hopeful that some of these seemingly aspirational
but yet realistic possibilities, like a truly seamless, secure,
efficient travel process that is touchless, that not only helps
to reduce cost in time for travelers and businesses, but also
enhances public health, I think those kinds of opportunities
are the kinds of yield that we could see out of this.
There is so many actions and strategies recommended in this
National Travel and Tourism Strategy that, as I mentioned
earlier, we certainly need to prioritize. But as I look at this
plan, if we can establish and maintain the kind of
collaboration nationally that we have seen in the island of
Puerto Rico and build upon of our successes, recognizing the
importance of this industry, I think our best days truly are
before us.
And I am excited and optimistic about what lies ahead.
Senator Scott. Thank you. For each of you in your roles, in
your roles on your jobs, what are the--what would you say were
the two or three biggest things Congress could do to improve
what you are trying to do in your respective roles?
Mr. Hornbuckle. Senator, if I may, and thank you for the
question. One thing we haven't really touched on, although you,
I heard this conversation earlier about lakes, we have a lake
in Las Vegas called Lake Mead.
One of the things that concerns us and the things that at
least keep us up at night aren't the things we can control, it
is the things we can't control. And so leaning into this
committee, into the other agencies that impact this, Lake Mead
is in trouble. We are down to 26 percent of its original high.
It feeds 90 percent of our valley with the water. We only
get, meaning Southern Nevada and Nevada, 2 percent of the
lake's water. But it is essential to our livelihoods and to
ultimately the continuing growth and prosperity in the
community.
So anything and everything that can be done and focused
around resources, obviously that is our example. We have other
issues that are caused by rising water, temperature change.
Yellowstone, that I mentioned in my opening remarks and
comments, just all critical to our success, and the kind of
thing that obviously we will focus on through TTAB, and
ultimately, hopefully this committee can help us focus on with
the right Federal resources to make sure that things that are
essential as water are continuing to be fed to the community is
like ours. So, thank you.
Senator Scott. Mr. Dean.
Mr. Dean. Yes. I think one thing that we didn't touch on
when we talk about the meetings and events sector is the
important role the Federal Government can play in helping
facilitate bids for these large, massive events and
conventions. The times, the visa processing time, the wait
time, the customs challenges, and other infrastructure issues
can be a competitive impediment.
So it is not looking to the Federal Government to
necessarily lead the process, but to help facilitate some of
these bids, which I think would help not just our major
markets, but the compression therein.
Another thing that certainly the Congress can lead is to
help make sure the Department of Transportation targets not
just resources for high priority travel and tourism
infrastructure projects, but to provide guidance for regional
tourism alliances and State and regional tourism promoters to
allow us to better access some of those travel and tourism
dollars that we know are going to be important to building the
infrastructure we need.
And certainly targeting workforce related grants that would
help young Americans who perhaps don't realize the amazing
future that awaits them with a career in travel and tourism, I
think is certainly something to help.
And last but certainly not least in Puerto Rico, anything
the Congress can do to encourage FEMA to accelerate the
investment that you have already made. I think there is
billions of dollars that are on the way to Puerto Rico to
rebuild its infrastructure.
Last I checked, just a small percentage of the 13,000
projects that have been approved and funded by the U.S.
Congress and Administration have been completed. So we need to
accelerate that process.
And while that may not be directly up to you, anything you
can do to influence that is certainly helpful to the future of
Puerto Rico, not just travel and tourism, but to the people
overall.
Senator Scott. Thank you. Thank you, Chair.
Senator Rosen. Well, thank you. Well, you both set me up
for my last two questions. And so we are going to build a
little bit upon what, Mr. Dean, what you just mentioned about
leveraging large scale events. And no one does it better than
Las Vegas. We are home to national and international
conventions and special events. We draw hundreds of thousands
of visitors at a time to the Las Vegas strip, downtown,
throughout our entire valley.
We know that these marquee events, from the Consumer
Electronics Show to the really exciting NFL draft, along with
Nevada small businesses, well they drive revenue not only for
their hosts but for the hotels, restaurants, live
entertainment, businesses nearby, shopping, and the like.
And the travel and tourism strategy, I know, understands
this direct impact. It recommends that the Federal Government
tie marketing of U.S. travel and tourism to these large scale
events, collaborate with State, local, tribal efforts to bring
more international events to the United States.
So, Mr. Hornbuckle, I know in Las Vegas, I am not sure, I
think we are still number one, but we are one of the top of the
list for conventions in this country. And so give us your take
on what you think we, this strategy and what we should be doing
to be sure that we grow these conventions and our tourism?
Mr. Hornbuckle. Thank you, Senator, for the question. Look
for Nevada, we have about 45 million visitors. I think we have
had a peak and we are heading back toward that number, which
about 7 million of them were convention delegates and
conventioneers, in benchmark by things like Consumer
Electronics Show and other international events at scale.
And so everything we have been talking about is essential
to all of that. I think to stay focused on visa, to stay
focused on the actual process once you get and get through the
system, on TSA and just the receptivity and the arrival itself
is critical.
You know, continuing to work with, I think, other countries
and other consulates around getting real information out to
people about the destination and about the process and the
education around how to apply for visas is essential.
I think there is a great deal of effort that is going into
that and more needs to continue to go. But there is no place
like Las Vegas for events. I mentioned earlier F1, something we
are excited by. We will host Super Bowl in a month--next month
we are hosting two international FIFA soccer teams. I think it
is Liverpool against Leeds, if I am remembering correctly.
I think Barcelona is coming out as well. And those events,
you know, thousands of people, there is a team coming up from
Mexico and we will put 60,000 people in the stadium, much like
they do all around the country.
But just ease of access and travel is really the critical
point. Those events will help promote some of themselves. There
are such large scale. Brand USA is very impactful and
meaningful, but particularly for the smaller destinations.
For us, the focus needs to be and wants to be ease of
coming in and getting to the jurisdiction or the destination,
excuse me, so that the experience would be something that they
want to repeat.
Formula 1 is a great example. We have signed it up for 3
years with an option to do more. I would like that to be a
permanent thing for this community and for the country for a
very long time. I think it is a place that this industry hasn't
gone and something that could be really net additive.
Senator Rosen. Well, thank you. I see Senator Tester just
came online. Senator Tester, if you have some questions, I want
to throw it over to you since we are in our second round, if
you are ready. Are you there? He was there. No, he's not. Well,
then I will--thank you for that answer, Mr. Hornbuckle.
Anything you want to add for coming to a wonderful island
resort for your convention, perhaps?
Mr. Dean. Puerto Rico has a lot of things to offer, but we
can't compete with Mr. Hornbuckle in the meetings that he
hosts. But what I can offer is a couple of things. We have
talked a lot about visa processing times. One thing we could do
that would help us attract larger events is to allow for group
processing of travel visas.
When you bring in a large event, a conference, that would
certainly make it more efficient, a competitive advantage, or
at least improvement of where we are at today. And that could
actually benefit other communities that aren't necessarily
hosts for major events.
When you think about large tour operators, which will
probably be the tip of the spear of the recovery when it comes
to international travel. The other thing, I mentioned earlier
but I will emphasize this is, I believe you are going to have
an extraordinary array of success stories from the $750 million
of travel and tourism grants, many of which went toward leisure
travel and outdoor recreation.
I think it merits consideration, a second round of those
grants to target specific needs, whether it is programs, it is
equipment, infrastructure to allow communities to be better
prepared and more competitive in hosting these events. When you
think about it, just a few weeks ago, the Island of Puerto Rico
hosted a sustainability summit hosted by the World Travel and
Tourism Council.
Extraordinary, you would think that they could have gone
anywhere in the world, and they ended up in Puerto Rico.
Thankfully, we have a large, technologically advanced
convention center, so communities that don't have those
advantages might not be able to compete. So those are two
things that we could certainly do to help that.
Senator Rosen. Well, thank you. Well, that--I have one last
question. And it really is, or comment. I want to hear what you
have to say. Of course, all of this, as we have mentioned more
broadly, really lies on a national strategy for our
infrastructure.
If we don't have ports and roads and bridges and trains,
airports, all of those things, then people can't travel
efficiently and effectively and go to see so many of the
beautiful destinations that we have. And I would say on the
base of a lot of that really is broadband and our investment in
broadband.
And the bipartisan infrastructure law, which I was proud to
help write and pass, it does include provisions I helped draft
that make significant broadband investments in rural and
underserved communities, something that I know are going to be
critical for leveling the playing field for travel.
And people come to our large destination and then may want
to venture out to see some other beautiful things in the state
of Florida. They might go to Miami and then go down to maybe
the Florida Keys, right, do I have that right? In Nevada, they
may visit if they are in Las Vegas, our beautiful Red Rock
Canyon just a few minutes off the Las Vegas strip.
So according to the NTIA broadband maps, I am going to ask
you a little bit about Puerto Rico, then, Mr. Hornbuckle. I
will ask you what you think about infrastructure generally as
we allude to climate change and the others.
Less than half of Puerto Ricans have access to basic
broadband service. Can--so can you talk about how this
investment in broadband is going to just help your economy
overall? And of course, yours is really a tourist based
economy.
Mr. Dean. Yes. Subcommittee Chair Rosen, you are absolutely
right in terms of the importance and impact, not just on travel
and tourism, but commerce in general and the quality of life.
We have been very fortunate in Puerto Rico to see a huge
historic investment in infrastructure in our island as a result
of some very unfortunate circumstances almost 5 years ago with
two major hurricanes.
But having seen what has happened since the massive
investment of infrastructure, today we have three 5G
communication networks and 31 Internet service providers, which
has actually become a competitive advantage for us in competing
for many types of travel and tourism business within the
Caribbean region. However, that is limited to certain areas of
Puerto Rico.
So the importance of expanding those types of networks,
particularly broadband connectivity, not only levels the
playing field, I think it opens up important business
opportunities. And in an island like Puerto Rico, where there
is so many Federal assets, the only rainforest in the U.S.
Forest Service system, to be able to access technology is a--it
is a multiplier, if you will, of the economic potential.
And what we have seen is that and the focus on local
community engagement is actually allowing the Federal
rainforest in Puerto Rico, El Yunque, to become a micro-
business economic development tool. So I think it is incredibly
important and it speaks to the future potential of travel and
tourism, not just in Puerto Rico, but throughout the United
States.
Senator Rosen. Well, we could use some of that rain
certainly in the state of Nevada and all the West Coast where
we are experiencing extreme drought. Mr. Hornbuckle, anything
you want to add about how these investments in our
infrastructure, workforce, housing, childcare, how it is going
to make a difference to support your industry.
Mr. Hornbuckle. Sure. It is again, thank you for the
question, Senator. As I alluded to earlier, obviously there are
large scale projects. I am grateful that Secretary Raimondo
opened up the very subject of infrastructure, because obviously
most of it and most of the heavy lift and the work has been
done over the Department of Transportation.
But what we are endeavoring to do is to identify large and
small projects that will have a major impact on our industry.
And so whether it is the I-15 corridor that I mentioned
earlier, whether it is funding for technology and development
of ease of getting through airports, particularly the process
through TSA, or that last mile, as I call it, where it is
workforce, where it is helping in a couple of our instances
where the public transportation just doesn't quite get to the
last mile, where so many people, so many of our entry level
positions rely on public transportation to get to work, to make
it accessible, because right now it isn't in every place.
Obviously, some of our destinations are remote, but the
vast majority, and particularly the ones that are near a city,
getting people to work, getting them home safely from work is a
critical thing. And candidly, it has become a deterrent in some
instances where we can't get people to take a job to begin with
because that transportation is a substantive issue for them.
So it is broad stroke, it is broad based. What we have
committed to is to focus on it and then ultimately try to push
it. I hope we don't end up in an environment with the
transportation monies of note and the infrastructure monies,
much like I just heard in Puerto Rico, where you fund it, but
getting it done, it is taking some time and some energy.
And so the ability to focus on what is important to all of
us and identify by priority, I think is essential. And
ultimately to help with that last mile for workforce management
and getting people in and home safely from work, is critical to
just basic employment.
Senator Rosen. Well, thank you. I want to thank both of
you. The enthusiasm for what you do, for your communities, for
travel and tourism is really infectious. And there is just so
much excitement, the ability to renew and to grow and innovate.
And I do believe that this is the Government, private
partnership, the public, private partnership that will build
communities large and small across this Nation. Just like
Senator Sullivan alluded to, this is the place that every
state, it matters, and everyone is behind it.
And I think that we can hopefully get our Tour Bus passed
and get someone who wakes up every day, every day, and this is
what they are focused on. So thank you again for being here.
The reason our Committee is named Tourism, Trade, and Export
Promotion is because when people come here, they see who we
are.
It promotes us all around the world, and we just want to
continue to do that. So I appreciate your time. For course, Mr.
Brad Dean from the first panel. He is no longer with us. We
appreciate him as well. And so this hearing record will remain
open for two weeks until Tuesday, July 26, 2022.
Any Senators who would like to submit questions for the
record should do so by Tuesday, July 26, 2022. For those of you
who testified today, we ask that your responses be returned to
the Committee as quickly as possible and in no case later than
two weeks after receipt.
That concludes today's hearing. Thank you again.
Mr. Hornbuckle. Thank you, Senator.
Senator Rosen. Thank you, Bill.
[Whereupon, at 11:53 a.m., the hearing was adjourned.]
A P P E N D I X
Response to Written Questions Submitted by Hon. Kyrsten Sinema to
Hon. Grant T. Harris
Tourism Visa Backlog. During the height of the COVID-19 pandemic in
2020, the number of international visitors arriving in Arizona declined
by 76 percent. The number of overseas visitors traveling to Arizona
declined by 88 percent during the same time period. In addition to
Canada and Mexico, large numbers of international visitors from the
United Kingdom, France, and Germany travel to Arizona to enjoy our
majestic landscapes and desirable climate. During the hearing, several
of my colleagues highlighted backlogs in visa processing for tourist
visas. Tourist visa appointment wait times in the top ten inbound
markets, including many European nations, are over 400 days on average.
Question. How does this visa backlog affect international travel?
What steps can Congress take to address this issue? Have you seen any
recent changes in the tourism visa wait times?
Answer. The Department is aware of concerns about visa wait times,
and the challenges which came about largely due to closures at
embassies and consulates around the world in the wake of COVID-19.
Through the development of the Strategy, the Department of Commerce has
been working closely with the Department of State to encourage steps to
address this challenge. I will defer to the Department of State on how
this can best be addressed as that agency is responsible for the
adjudication of visa applications, but Commerce is committed to working
with them as they address visa wait time issues and work to get
embassies and consulates back to full staffing. In addition, this
challenge is addressed at a high level in the ``Facilitating Travel to
and within the United States'' pillar of the Strategy, which calls for
the development of technologies to streamline efficiencies in visa
processing, among other items, which DHS and State will lead.
Omnibus Travel and Tourism Act. I am a proud cosponsor of
bipartisan legislation S. 3375, the Omnibus Travel and Tourism Act. S.
3375 includes a number of bipartisan bills to promote U.S. tourism. The
bill establishes an Assistant Secretary of Commerce for Travel and
Tourism to coordinate with Commerce Department and other Federal
agencies on U.S. domestic travel and tourism issues and develop
strategies to enable more international travelers to visit the United
States. It also requires the Commerce Department to set annual travel
export goals and provide recommendations related to improving visa
processing and improving domestic in addition to international tourism.
Question. If enacted, how will the Department utilize the new tools
provided in the Omnibus Travel and Tourism Act?
Answer. If enacted, we pledge to implement the law and keep
Congress informed on its implementation.
National Tourism Strategy. I appreciate that the 2022 National
Travel and Tourism Strategy includes a focus on promoting diverse and
accessible tourism experiences. Several Native American tribes in
Arizona host significant numbers of visitors each year to visit sites
and attractions such as Monument Valley and Four Corners on the lands
of the Navajo Nation and the Grand Canyon Skywalk on the lands of the
Hualapai Tribe.
Question. How will promoting these diverse experiences affect the
communities that tourists visit?
Answer. The Department believes the diversity of tourism
attractions and experiences is a great asset in attracting travelers to
the United States. Commerce also believes that a sustainable tourism
ecosystem maximizes the benefits of travel and tourism to our
communities. The Strategy specifically calls for working with state,
local, and tribal governments to identify the tourism opportunities
that they desire and to support them with planning and, where possible,
funding assistance to achieve their goals. Supporting local
communities' planning and preparation for the future will help balance
their needs while attracting increased numbers of visitors. We also
believe involving underserved populations in local planning is
essential to advancing equity and environmental justice.
______
Response to Written Question Submitted by Hon. Kyrsten Sinema to
William ``Bill'' Hornbuckle
National Tourism Strategy. I appreciate that the 2022 National
Travel and Tourism Strategy includes a focus on promoting resilient and
sustainable tourism. The Southwest is currently in the midst of the
worst drought in 1,200 years, and the Bureau of Reclamation has called
on Colorado River Basin states to conserve two to four million acre-
feet of water in order to protect Lake Mead and Lake Powell.
Question. How would conserving water levels at Lake Mead affect
tourism in Las Vegas and southern Nevada?
Answer. In 2021, the Lake Mead National Recreation Area was the
fifth most visited park in the National Park System, with 7.6 million
people \1\ visiting its 750 miles of shoreline. Visitors come to the
lake to hike, swim, boat, and fish. Additionally, Lake Mead serves as
the primary water source for Las Vegas, providing approximately 90
percent of the water supply in southern Nevada.\2\
---------------------------------------------------------------------------
\1\ ``Most famous national parks set visitation records in 2021,''
National Park Service, February 16, 2022.
\2\ ``Our current water supply,'' Southern Nevada Water Authority,
Accessed August 2022.
---------------------------------------------------------------------------
When it comes to water in southern Nevada, every drop matters. For
decades, MGM Resorts, the state of Nevada, and our partners have
consistently and robustly supported efforts to conserve and reuse as
much water as possible. Las Vegas resorts welcome millions of visitors
each year, but due to our collective efforts, resorts throughout
southern Nevada consume only 4.9 percent of municipal water.\3\ Water
conservation and sustainability is ingrained in our industry--in who we
are.
---------------------------------------------------------------------------
\3\ ``2021 Water Resources Plan,'' Southern Nevada Water Authority,
Accessed August 2022.
---------------------------------------------------------------------------
While southern Nevada relies on the Colorado River for most of its
water supply, the community is entitled to less than 2 percent \4\ of
the river's water. Las Vegas Strip resorts, including those operated by
MGM Resorts, use a globally leading circular water management system
managed by the Southern Nevada Water Authority (SNWA) which requires
each new casino to provide a detailed water conservation plans to SNWA
before being approved for construction. Through this collaboration,
nearly every gallon of water used inside buildings is recycled back to
its source, Lake Mead, allowing Las Vegas to grow into a global tourism
destination despite its desert landscape. Through our water
conservation efforts, which include water efficient buildings, drought-
tolerant landscaping, water recycling, and an onsite well for use by
the iconic Fountains at Bellagio, MGM Resorts is well on our way to
achieving our goal of reducing water use at our properties by 33
percent by 2025.
---------------------------------------------------------------------------
\4\ ``I-Team: `Colorado River Compact' continues to limit how much
water Nevada receives,'' 8 News Now, November 15, 2021.
---------------------------------------------------------------------------
Still, the Colorado River Basin is experiencing the worst drought
in history. Water levels at Lake Mead and Lake Powell have resulted in
significant water level declines, prompting the Federal government to
issue shortage declarations threatening our communities' access to
water and the United Nations to issue a warning that Lake Mead and Lake
Powell are in danger of reaching `dead pool status,' a water level so
low, it could no longer flow downstream \5\ .
---------------------------------------------------------------------------
\5\ ``As the climate dries the American west faces power and water
shortages, experts warn,'' United Nations, August 2, 2022.
---------------------------------------------------------------------------
In order to prepare our communities and businesses for the future,
states must collaborate in preparing and implementing long-term
solutions for adequate water sources. We need collaboration that
crosses state and local lines, welcomes business innovation, and
enlists everyone in the battle to preserve our water resources. The
Federal government has a critical role in this effort--and that role
should include funding efforts to promote water conservation,
especially across Colorado River Basin states to make our water
supplies sustainable and making investments in the infrastructure and
water security programs needed to supply it to our homes and
businesses. If we do not act, the water level in Lake Mead is going to
become an increasingly important factor in the business decisions not
only in Nevada, but all across the West. And just as we have tried to
incorporate a holistic approach to water issues, we hope Congress and
Federal agencies will look for a holistic approach as well.
Last year, the Bipartisan Infrastructure Law included the Drought
Contingency Plan (DCP) designed to protect Lake Mead and Lake Powell
from reaching critical water elevations through voluntary reductions
and increased conservation. Additionally, the House recently passed
H.R. 5118, the Wildfire Response and Drought Resiliency (WRDR) Act,
which includes legislation to provide $500 million to prevent key
reservoirs of the Colorado River from declining to unsafe levels,
providing investments to support drought resiliency. The bill would
also invest in water recycling and desalination projects to improve our
Nation's water infrastructure. I applaud your leadership on addressing
the historic water crisis we are facing at Lake Mead. I urge Congress
and the Administration to fully fund drought resilience efforts and
work together prioritize our country's water reliability and
resiliency.
I also encourage the Federal government to support initiatives that
help keep more water in the Colorado River Basin as well as
collaborative work with states, with matching funds, and technical
assistance. That would help not only Nevada, but everyone throughout
the entire Colorado River Basin system.
Please feel free to contact me should you have additional thoughts
or concerns.
[all]