Approved U.S. National CVB Would Rely On European Visitor Fees

The U.S. Travel Promotion Act of 2009, which would establish for the first time ever a federal convention and visitors bureau to promote the United States as a destination for meetings, tourism, scholarship and business travel, passed the U.S. House of Representatives yesterday 358-66, following the Senate's 79-19 approval in September.

However, the act, which is funded in part by travelers who enter the United States from visa-waiver countries, has sparked protest from the European Union, which counts as its members 22 of the 35 countries in the program. While placing the onus of funding on non-U.S. travelers has made the Travel Promotion Act politically palatable in Washington, E.U. representatives point to the possibility of a similar fee on U.S. travelers bound for Europe.

Facing what proponents described as a minor technicality before advancing to the president's desk for final passage, the legislation first must undergo an additional Senate vote, "anticipated in the coming weeks," according to the U.S. Travel Association on Oct. 8.

"Because the legislation creates 'revenue' for the federal government, the Constitution requires that the bill originate in the House—hence the need for the Senate to pass the House version of the bill," U.S. Travel Association president and CEO Roger Dow said in a dispatch yesterday applauding the bill's passage.

Final passage would create a nonprofit corporation—essentially a national convention and visitors bureau—called the Corporation for Travel Promotion, whose mission is to promote the United States to "travelers, travel agents, tour operators, meeting planners, foreign governments, travel media and other international stakeholders" through advertising, outreach and education.

Though half of the program's funds would come from private industry donations and partnerships, DHS would fund the other half by assessing $10 for travel authorization for visitors to the United States from visa-waiver countries. The bill, however, caps at $100 million annually the amount funded from foreign travelers.

The United States has a new mechanism that would aid in collecting the $10 from overseas visitors. DHS last August launched the Electronic System for Travel Authorization and in January mandated the system for U.S.-bound travelers from visa-waiver countries to submit biographic data prior to entering the country.

Through ESTA, residents from the 35 Visa Waiver Program countries can submit information online and, once approved, are cleared to enter the United States for up to two years or until the applicant's passport expires.

U.S. Travel Association senior vice president of public affairs Geoff Freeman of the U.S. Travel Association called the $10 fee levied on travelers once every two years "highly targeted and limited in its execution." However, ambassador John Bruton, head of the European Commission delegation to the United States, said, "ESTA's function is to vet travelers against watchlists, not to collect revenue for the travel industry."

Bruton last month reiterated European objections to the Travel Promotion Act and claimed it would have the opposite impact of overturning negative perceptions of the United States held by overseas travelers. He said the legislation amounts to "a tax on tourists to encourage tourism, which is a questionable—if not paradoxical—concept."

Bruton did not call for a similar fee for U.S. travelers bound for Europe, but he noted that possibility. "We are also concerned that there will be calls for Americans to pay the same fees for travel to Europe, and this could further depress transatlantic travel," he said.