[Congressional Record Volume 147, Number 154 (Thursday, November 8, 2001)]
[Senate]
[Page S11605]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
DOMESTIC TRAVEL AND TOURISM INDUSTRY
Mr. KYL. Madam President, as my colleagues know, Senator Zell Miller
and I have introduced bipartisan legislation to help our domestic
travel and tourism industry recover from the devastating effects of
September 11. I believe that we must focus an emergency economic
stimulus package on the sector that has been most harmed: our travel
and tourism industry. If we are to prevent thousands of bankruptcies,
hundreds of thousands of lost jobs, and a host of indirect consequences
to the rest of the economy, it is essential that we provide some
immediate help to the travel and tourism industry.
The most important element of the legislation would provide a
temporary $500 tax credit per person, $1,000 for a couple filing
jointly, for personal travel expenses incurred by the end of the year.
This temporary measure will help encourage Americans to resume their
normal travel habits. Unlike general rebate checks to taxpayers, a tax
credit conditioned on travel expenses ensures that the money is spent
on a specific activity, in this case an activity that will generate
positive economic ripples throughout the entire American economy. It
will also help create confidence and encourage Americans to get back on
airplanes.
Since business-travel expenses are already deductible, temporarily
restoring full deductibility for all business-entertainment expenses,
including meals, that are now subject to a 50 percent limitation, also
would help restore the mainstay of the travel industry: the business
traveler.
In a recent letter to the President, the members of the Travel
Industry Recovery Coalition endorsed the travel credit as well as
elimination of the current 50 percent penalty on business meals and
entertainment. I ask unanimous consent that the letter be printed in
the Record.
I hope my colleagues will cosponsor S. 1500 and join in our
bipartisan effort to preserve jobs and revive this vital sector of the
economy by getting travelers traveling again.
There being no objection, the letter was ordered to be printed in the
Record, as follows:
November 2, 2001.
The President,
The White House,
Washington, DC.
Dear Mr. President: On behalf of the twenty-six member
organizations comprising the Travel Industry Recovery
Coalition representing all segments of our nations $582
billion travel and tourism industry and listed in detail on
the enclosed sheet, I write to thank you for encouraging
Americans to travel again and for your Administration's
ongoing efforts to make travel safe and secure. Working with
your Administration, our industry has made progress ensuring
that travel is safe and secure and in restoring consumer
confidence in travel.
We are grateful for your leadership in expanding the low
interest SBA Economic Injury Disaster Loan program to small
business across the entire country. We also appreciate the
congressional leaders who have expressed their strong support
for an expansion of the net operating loss carry-back that
will be of real benefit to our industry. Unfortunately, these
important efforts have not been sufficient to encourage
enough travelers to travel and thus to keep workers working.
The state of our travel and tourism industry thus remains
precarious.
We write to urge your Administration to support bipartisan
legislation introduced in both the Senate and the House that
would provide a $500 per person ($1,000 per couple) tax
credit for travel booked by the end of the year. The proposed
tax credit meets your Administration's central condition for
inclusion in the economic stimulus package in that it would
have an immediate and significant impact on the entire
economy, and would not require a permanent change to the tax
code (and thus would not affect future interest rates). We
believe its enactment would generate $50 billion in economic
activity and 590,000 jobs over the course of the next year.
We urge you to support this temporary travel tax credit to
stimulate the economy, to preserve jobs, and to bring
families together this year at Thanksgiving and during the
December holidays.
We urge your Administration to support short-term measures
that would eliminate the current 50% penalty on business
meals and entertainment expenses and to work with our
industry on a comprehensive promotional campaign to encourage
travel to and within the United States. We also ask your
Administration to work with us in providing assistance to the
valuable employees in our industry who have lost their jobs,
face reduced hours, or face the imminent loss of their jobs
if travel does not rebound quickly.
Thank you again for leading our country at this difficult
time and for your Administration working with us to achieve
our twin objectives to ensure safe traveling and restoring
confidence in travel to and within America.
Sincerely,
William S. Norman,
President and CEO.
Travel Industry Recovery, Coalition
Coalition Member and Key Contact:
Air Transport Association, Carol Hallett, President and
Chief Executive Officer; American Association of Museums,
Edward Able, Jr., President and Chief Executive Officer;
American Bus Association, Peter Pantuso, President and Chief
Executive Officer; American Recreation Coalition, Derrick
Crandall, President, and Association of Retail Travel Agents,
John Hawks, President.
American Society of Travel Agents, William Maloney,
Executive Vice President and Chief Operating Officer;
Association of Travel Marketing Executives, Kristin Zern,
Executive Director; Carlson Companies, Marilyn Carlson
Nelson, Chairman and Chief Executive Officer; Cruise Lines
International Association, Jim Godsman, President, and
Hospitality Sales and Marketing Association International,
Ilsa Whittemore, Associate Executive Director.
International Association of Amusement Parks and
Attractions, Brett Lovejoy, President; International
Association of Convention and Visitors Bureaus, Michael
Gehrisch, President and Chief Executive Officer;
International Council of Cruise Lines, Michael Crye,
President; National Association of RV Parks and Campgrounds,
David Gorin, President, and National Business Travel
Association, Marianne McInerney, Executive Director.
National Council of Attractions, Randy Fluharty, Senior
Vice President, The Biltmore Company; National Council of
Destination Organizations, Joe D'Alessandro, President and
Chief Executive Officer, Portland Oregon Visitors
Association; National Council of State Tourism Directors,
Patty Van Gerpen, Cabinet Secretary, South Dakota Department
of Tourism; National Tour Association, Hank Phillips,
President, and Receptive Services Association, Michele
Biordi, Executive Director.
Recreational Vehicle Industry Association, David Humphreys,
President; Society of Government Travel Professionals, Duncan
Farrell, General Manager; Student Youth Travel Association of
North America, Michael Palmer, Executive Director, Travel
Goods Association, Anne DeCicco, President; Travel Industry
Association of America, William S. Norman, President and
Chief Executive Officer, and United States Tour Operators
Association, Bob Whitley, President.
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