The American Hotel & Lodging Association is continually examining policies that will produce the best environment to expand the lodging business. The Travel Promotion Act planted a flag firmly in the international market, and for good reason—there are incredible opportunities to attract new visitors from overseas. President Obama established a goal of doubling exports by 2015, and international travel remains a major growth market to achieve this target. Attracting more international visitors means more jobs and more tax dollars at every level of government—dollars that stay in this country.
The Senate Commerce Subcommittee on Competitiveness, Innovation, and Export Promotion held a hearing April 5, 2011, on attracting international visitors to the United States. A major issue examined at the hearing was the bottleneck problem for visitors in obtaining visas. The visa process can be incredibly burdensome and, as a result, travelers are heading to destinations where it is easier to obtain access. Since 9/11, the United State has lost a third of its market share in the international long-haul tourism market. If the United States can recapture its lost market share by 2015, it has the opportunity to create up to 500,000 new jobs and generate up to $60 billion in additional exports annually, as reported by the Travel and Tourism Advisory Board (TTAB) Travel Facilitation Sub-Committee Feb. 1, 2011. One solution to this problem is expanding the number of countries in the Visa Waiver Program (VWP).
Visa Waiver Program
The VWP is administered by the Department of Homeland Security (DHS), in consultation with the Secretary of State, and enables citizens of 36 designated “program countries” to travel to the United States for tourism or business for stays of 90 days or less without first obtaining a visa.
The VWP encourages tourism, makes business interactions easier, and allows allies to interact freely. In addition, the VWP improves security.
To become a VWP country, the DHS requires strict security standards and data sharing with the United States. VWP members are also required to maintain high counterterrorism, law enforcement, and border control standards. This information helps to identify suspected terrorists, international criminals, and visitors who overstay their allotted time.
Expanding the Program
In 2009, there were 23.8 million international travelers to the United States. These visitors from overseas generated $75 billion in spending in the United States, which represents about 700,000 jobs. Each additional million international visitors generate $3.2 billion in additional exports and 27,000 new jobs, according to an October 2010 report from the Travel & Tourism Advisory Board. Obviously, growing the international market is in the country’s best interests.
The Secure Travel and Counterterrorism Partnership Act of 2011 (H.R.959/S.497) identifies the opportunities presented in expanding the VWP and lays out a plan to admit more countries. The AH&LA-supported bills were proposed in Congress this March by Rep. Mike Quigley, D-Ill., Sen. Barbara Mikulski, D-Md., and Sen. Mark Kirk, R-Ill. They propose focusing on admitting countries with low visa overstay rates, thereby addressing the main concern of critics.
Nine countries have been admitted to the VWP since Sept. 11, 2001, which has helped both commerce and security. By bringing more countries into a strong security and economic partnership with the United States, we can further these critical benefits.
The Role of Lodging
The TTAB Travel Facilitation Subcommittee Chairman Hubert Joly, president and CEO of Carlson, identified visa issues as one of the greatest impediments to attracting international travelers in a report issued to the Department of Commerce on Feb. 1, 2011. TTAB, of which AH&LA is a leading partner, recommended expanding the VWP as part of a solution.
To facilitate VWP expansion, the subcommittee asked the Secretary of Homeland Security to look at relevant data when evaluating countries for admission into the program. Currently, certain bureaucratic requirements not based on security, visa violations, or visitor overstay rates restrict the expansion of the program. AH&LA believes that admission to the VWP should be based on strategic U.S. security and economic policy, and not arbitrary bureaucratic designations.
“When South Korea was admitted to the Visa Waiver Program, we saw an increase of Korean travelers to the United States by 49 percent,” said Nancy Johnson, vice chair of the AH&LA and executive vice president of select service hotels for Carlson. “Opening the program to additional countries would have a profoundly positive impact on travel and the economy.”
Expanding the number of countries in the VWP would allow for several strategic markets to join the program, such as Poland, Argentina, and Brazil, facilitating the entry of millions of new visitors to the United States, and thus adding much needed jobs and tax revenue to the U.S. economy.
This move would bring more international visitors, promote greater international cooperation, and advance U.S. security. If we cannot make it easier and more welcoming to visit our country, these travelers will pack their bags and head elsewhere. There is simply too much at stake to ignore this issue.
