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THE STATE OF U.S. TRAVEL AND TOURISM: 

INDUSTRY EFFORTS TO ATTRACT 100 MILLION 

VISITORS ANNUALLY 

HEARING 

BEFORE THE

SUBCOMMITTEE ON TOURISM, COMPETITIVENESS, 

AND INNOVATION 

OF THE

COMMITTEE ON COMMERCE, 

SCIENCE, AND TRANSPORTATION 

UNITED STATES SENATE 

ONE HUNDRED THIRTEENTH CONGRESS 

SECOND SESSION 

MAY 8, 2014 

Printed for the use of the Committee on Commerce, Science, and Transportation 

( 

(II) 

SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION 

ONE HUNDRED THIRTEENTH CONGRESS 

SECOND SESSION 

JOHN D. ROCKEFELLER IV, West Virginia, Chairman 

BARBARA BOXER, California 

BILL NELSON, Florida 

MARIA CANTWELL, Washington 

MARK PRYOR, Arkansas 

CLAIRE MCCASKILL, Missouri 

AMY KLOBUCHAR, Minnesota 

MARK BEGICH, Alaska 

RICHARD BLUMENTHAL, Connecticut 

BRIAN SCHATZ, Hawaii 

EDWARD MARKEY, Massachusetts 

CORY BOOKER, New Jersey 

JOHN E. WALSH, Montana 

JOHN THUNE, South Dakota, Ranking 

ROGER F. WICKER, Mississippi 

ROY BLUNT, Missouri 

MARCO RUBIO, Florida 

KELLY AYOTTE, New Hampshire 

DEAN HELLER, Nevada 

DAN COATS, Indiana 

TIM SCOTT, South Carolina 

TED CRUZ, Texas 

DEB FISCHER, Nebraska 

RON JOHNSON, Wisconsin 

ELLEN L. DONESKI, Staff Director 

JOHN WILLIAMS, General Counsel 

DAVID SCHWIETERT, Republican Staff Director 

NICK ROSSI, Republican Deputy Staff Director 

REBECCA SEIDEL, Republican General Counsel and Chief Investigator 

SUBCOMMITTEE ON TOURISM, COMPETITIVENESS, AND INNOVATION 

BRIAN SCHATZ, Hawaii, Chairman 

MARK PRYOR, Arkansas 

AMY KLOBUCHAR, Minnesota 

MARK BEGICH, Alaska 

EDWARD MARKEY, Massachusetts 

JOHN E. WALSH, Montana 

TIM SCOTT, South Carolina, Ranking 

Member 

ROY BLUNT, Missouri 

DAN COATS, Indiana 

DEB FISCHER, Nebraska 

RON JOHNSON, Wisconsin 

(III) 

C O N T E N T S 

Page 

Hearing held on May 8, 2014 ................................................................................. 1 

Statement of Senator Schatz .................................................................................. 1 

Prepared statement of Hon. Amy Klobuchar, U.S. Senator from Minnesota ............................................................................................................. 3 

Statement of Senator Scott ..................................................................................... 4 

Statement of Senator Blunt .................................................................................... 28 

Statement of Senator Heller ................................................................................... 34 

WITNESSES

Roger Dow, President and Chief Executive Officer, U.S. Travel Association ..... 5 

Prepared statement .......................................................................................... 7 

Christopher L. Thompson, President and Chief Executive Officer, Corporation 

for Travel Promotion (Brand USA) ..................................................................... 11 

Prepared statement .......................................................................................... 12 

Mike McCartney, President and Chief Executive Officer, Hawaii Tourism 

Authority ............................................................................................................... 18 

Prepared statement .......................................................................................... 20 

Brad Dean, President and Chief Executive Officer, Myrtle Beach Area Chamber of Commerce ................................................................................................... 23 

Prepared statement .......................................................................................... 25 

APPENDIX

Letter dated April 7, 2014 to Hon. Amy Klobuchar from the American Hotel 

& Lodging Association ......................................................................................... 43 

Letter to Hon. Gus Bilirakis from Clyde J. Hart, Senior Vice President for 

Government Affairs and Policy, American Bus Association ............................. 44 

Letter dated April 17, 2014 to Hon. Gus Bilirakis and Hon. Peter Welch 

from Geoff Freeman, President and CEO, American Gaming Association ..... 44 

Letter dated May 8, 2014 to Representative Bilirakis from John H. Graham 

IV, CAE, President and CEO, ASAE—The Center for Association Leadership ........................................................................................................................ 45

Letter dated April 11, 2014 to Hon. Amy Klobuchar and Hon. Roy D. Blunt 

from Zane Kerby, President and Chief Executive Officer, American Society 

of Travel Agents ................................................................................................... 46 

Letter dated May 16, 2014 to Members of Congress from Kevin Mitchell, 

Chairman, Business Travel Coalition ................................................................ 46 

Letter dated April 9, 2014 to Hon. Amy Klobuchar from Christine Duffy, 

President and CEO, Cruise Lines International Association (CLIA) .............. 47 

Letter dated April 24, 2014 from Michael Gehrisch, President and CEO, 

Destination Marketing Association International ............................................. 48 

Letter dated May 8, 2014 to Senator Roy Blunt and Senator Amy Klobuchar 

from Kenneth Svendsen, President, Walt Disney Travel Company and Senior Vice President, Global Sales .......................................................................... 48 

Letter dated May 7, 2014 to Hon. Amy Klobuchar from John F. Edman, 

Director, Explore Minnesota Tourism ................................................................ 49 

Letter dated May 6, 2014 to Hon. Amy Klobuchar and Hon. Roy Blunt 

from Paul Noland, President and CEO, International Association of Amusement Parks and Attractions ................................................................................ 50 

Letter dated May 6, 2014 to Hon. Amy Klobuchar from Maureen Hooley 

Bausch, Executive Vice President, Mall of America ......................................... 50 

Letter to Members of Congress from Wayne Ingram, President and Chief 

Executive Officer, National Tourism and Heritage Association ....................... 51 

Page

IV 

Letter dated April 11, 2014 to Hon. Roy Blunt from Tracy Kimberlin, President/CEO, Springfield Missouri Convention & Visitors Bureau ...................... 52 

Letter dated May 8, 2014 to Hon. Amy Klobuchar and Hon. Roy D. Blunt 

from Stephen Shur, President, Travel Tech ...................................................... 52 

Letter dated April 22, 2014 to Hon. Any Klobuchar and Hon. Roy Blunt 

from R. Bruce Josten, Executive Vice President, Government Affairs, U.S. 

Chamber of Commerce ......................................................................................... 53 

Letter dated April 4, 2014 to Hon. Amy Klobuchar and Hon. Roy Blunt 

from Roger J. Dow, President and CEO, U.S. Travel Association ................... 53 

Letter dated May 23, 2014 to Hon. Amy Klobuchar and Hon. Roy Blunt 

from Desiree Filippone, Managing Director, Government Relations, United 

States Olympic Committee (USOC) .................................................................... 54 

Letter dated April 22, 2014 to Senator Amy Klobuchar from Terry Dale, 

President and CEO, United States Tour Operators Association ...................... 55 

Letter dated March 5, 2014 to Congressman Gus M. Bilirakis from Will 

Seccombe, President and CEO, VISIT FLORIDA ............................................. 55 

Response to written questions submitted to Roger Dow by: 

Hon. Brian Schatz ............................................................................................ 106 

Hon. Bill Nelson ............................................................................................... 108 

Hon. Amy Klobuchar ........................................................................................ 108 

Response to written questions submitted to Christopher L. Thompson by: 

Hon. Bill Nelson ............................................................................................... 109 

Hon. Amy Klobuchar ........................................................................................ 110 

Hon. Roy Blunt ................................................................................................. 112 

Response to written question submitted by Hon. Amy Klobuchar to: 

Mike McCartney ............................................................................................... 114 

Brad Dean ......................................................................................................... 114 

(1) 

THE STATE OF U.S. TRAVEL AND TOURISM: 

INDUSTRY EFFORTS TO ATTRACT 

100 MILLION VISITORS ANNUALLY 

THURSDAY, MAY 8, 2014 

U.S. SENATE, 

SUBCOMMITTEE ON TOURISM, COMPETITIVENESS, AND INNOVATION,

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. Brian Schatz, Chairman of the Subcommittee, presiding. 

OPENING STATEMENT OF HON. BRIAN SCHATZ, 

U.S. SENATOR FROM HAWAII 

Senator SCHATZ. Good morning. I call this hearing to order. This 

is the first hearing of the Subcommittee on Tourism, Competitiveness, and Innovation. I am glad to be here with Ranking Member 

Scott to work together to advance the tourism industry and create 

good jobs in every State, including my home state of Hawaii. 

This hearing will examine whether we are reaching our Nation’s 

goal of attracting 100 million international visitors annually by 

2021. We will hear from key industry stakeholders and get their 

perspective on how the Federal Government can better achieve this 

goal. 

Tourism and hospitality know no ideology. This is an area where 

we can work together across party lines to create and keep jobs in 

the United States. 

The travel and tourism industry is a major economic driver and 

job creator in this country. It generates trillions of dollars in economic output, making it our top services export, and supports more 

than 14 million American jobs. 

When international travelers come to the United States, they 

spend an average of $4,400 on food, lodging, transportation, and 

entertainment, which is directly infused into local economies. 

I have a particular interest in this industry. It is the single largest source of private capital coming into the state of Hawaii, and 

20 percent of our gross state product, creating the most jobs among 

the major economic sectors. 

As an island state located in the Asia-Pacific region, we are 

uniquely positioned to capture the growth in travel and tourism demand from the region’s emerging markets. 

Over the past decade, international visitors to the United States 

have increased from 40 million to nearly 70 million. The United 

2 

States holds the leading global share of international traveler 

spending. 

We are now seeing double digit growth in the number of visitors 

from China and Brazil, the only two countries in America’s top 10 

markets that are not members of the Visa Waiver Program. 

However, while international arrivals are increasing, our overall 

share of the global market is decreasing. This market is growing 

due to the rise of tourism and new emerging economies, so we must 

be proactive to grow our leading market share. The Commerce 

Committee has a history of taking action to strengthen our competitiveness in the global travel marketplace. Although we have 

seen big gains in international visitation in the last 5 years, we 

have to continue to look for additional ways to increase market 

share. 

Today, we will focus on three critical areas to maintain America’s 

competitiveness in travel and tourism. 

The first is how the United States engages in travel promotion. 

Prior to the establishment of Brand USA, the United States lacked 

a coordinated international promotion strategy. We need to creatively and effectively market the United States as a premier travel destination. 

Individual U.S. destinations also market to international visitors 

but understanding how their efforts coordinate with and complement national efforts is key to doing this well. 

The second issue is accessibility. In the past, international visitors have experienced long wait times at our ports of entry, which 

did not create a feeling of welcome. 

A recent U.S. travel survey showed that international travelers 

are less likely to come back because of the long lines and wait 

times. More than 40 percent of international travelers that visited 

said they would recommend avoiding a trip to the United States 

because of the entry process. 

This is costing our economy billions of dollars. 

Customs and Border Protection has tried to reduce wait times by 

establishing the Global Entry program to expedite the processing 

of low-risk travelers, and working with the private sector to implement the model ports program. 

We have also had challenges meeting the visa demand, especially 

in high demand countries, such as China and Brazil. The State Department has made significant progress in reducing the visa interview wait times by adding consular offices and implementing a 

pilot program to waive interviews for low-risk applicants. However, 

as demand rises, we will need to come up with innovative methods 

to maintain low wait times that are competitive with other countries. 

While CBP and the State Department have made some improvements, we need to be looking at how we can further streamline the 

processes, such as by expanding trusted traveler programs and 

leveraging new technologies to increase efficiency. 

Last, the Subcommittee will focus on how we can provide a 

unique visitor experience to attract new visitors and encourage repeat visits. We can achieve this by becoming more customer focused in how we deliver Federal services. We also must help small 

businesses to grow and provide high quality products and services. 

3 

As we work to address these areas, a critical component will be 

public-private partnerships. The Travel and Tourism Advisory 

Board and Brand USA are examples of effective partnerships between the sectors to coordinate efforts and advance travel and tourism policy, but we must continue to build on these successes and 

find ways to increase collaboration to address barriers to travel in 

the tourism industry. 

I look forward to hearing from the witnesses on how we can continue working together to grow our travel and tourism industry. I 

want to thank you all for being here today. 

I would also like to mention that Senator Klobuchar wanted to 

be here today but was unable to attend because she is attending 

Congressman Oberstar’s funeral. She has been a strong leader on 

tourism issues as the co-chair of the Tourism Caucus and on Brand 

USA reauthorization. 

She will be submitting a statement and some questions for the 

record. 

[The prepared statement of Senator Klobuchar follows:] 

PREPARED STATEMENT OF HON. AMY KLOBUCHAR, U.S. SENATOR FROM MINNESOTA

Thank you, Chairman Schatz and Ranking Member Scott for holding this important hearing on strategies to bring more tourists to the United States. 

As the former Chair of this Subcommittee, I know the importance of the tourism 

industry to our Nation’s economy. In fact, tourism is America’s seventh largest private sector industry, and it is America’s number one service export. That is why as 

co-chair of the bipartisan Senate Tourism Caucus with Senators Blunt, Begich and 

Kirk, and as a member of the President’s Export Council, I’ve been working on policies to encourage more international tourists to visit our states. 

The typical international tourist visiting the United States spends an average of 

$4,500. Multiply that by several million and you’re looking at some really significant 

numbers. In 2012, international tourists added nearly $130 billion to the U.S. economy and generated more than $19 billion in federal, state and local tax revenue. 

Last year we set a new record with 70 million international tourists visiting the 

United States. For every 33 foreign tourists who come to the United States, one new 

American job is created and these are jobs that cannot be outsourced. 

One way to increase visitation to the United States is by making sure people 

around the world know all the great places they can see and activities they can do 

here. I supported the bipartisan Travel Promotion Act and the creation of Brand 

USA in 2010 as a marketing resource for destinations around the country and as 

a way for the United States to better compete for market share in the rapidly growing international travel market. 

We’re starting to see that Brand USA is making a difference. A recent report 

found that in 2013, just a few years into operation, Brand USA’s marketing campaigns increased visitation to the United States by 1.1 million people—or a boost 

of 2.3 percent over where it would have been without the marketing campaigns. 

These additional visitors spent $3.4 billion in the United States, supporting 53,000 

new jobs. 

Now Senator Blunt and I are leading the effort in the Senate to get Brand USA 

reauthorized so it can expand to even more markets. We introduced S. 2250, a bill 

to reauthorize Brand USA, a couple of weeks ago and already have 24 bipartisan 

cosponsors on the bill including many members of this Committee. The overwhelming bipartisan support for the bill demonstrates how important tourism is for 

each of our states and to our local economies. 

With news about our reauthorization effort continuing to grow, we are earning 

new endorsement letters from national associations like U.S. Travel Association, the 

American Hotel and Lodging Association, the U.S. Chamber of Commerce, the 

Cruise Line Industry Association, and more. Additionally, state and local businesses 

and visitors bureaus are sending in their support. From my home state I have received letters of support from Explore Minnesota and the Mall of America, both of 

whom have partnerships with Brand USA and have been able to expand their marketing capabilities to bring foreign visitors to the Land of 10,000 Lakes. 

4 

We also need to make sure that our policies at other agencies keep up with the 

demand that Brand USA’s efforts will create on our visa, ports of entry, and transportation systems. Earlier this week I sent a letter to Secretaries Pritzker and 

Jewell, the co-chairs of the President’s Task Force on Travel Competitiveness, asking them to review and renew the Administration’s commitment to the National 

Travel and Tourism Strategy, especially in light of the approaching 100th anniversary of our National Park System. 

I’d like to thank the witnesses for being here today and for your dedication to promoting U.S. tourism so that we can reach the President’s goal of attracting 100 million visitors annually by 2021. 

Senator SCHATZ. Before I recognize Ranking Member Scott for 

his remarks, I would like to say that I appreciate his willingness 

and his leadership in working on these issues in a bipartisan manner. We have been working on a bill to facilitate more international 

visitors in the country. 

Senator Scott and I both come from places that know tourism 

well. He is from Charleston, South Carolina, a great tourism city 

on the East Coast. I expect an invitation shortly. 

We have seen how tourism helps small businesses and is a major 

driver of local economies and creating jobs. I look forward to 

partnering with Ranking Member Scott. 

Ranking Member Scott? 

STATEMENT OF HON. TIM SCOTT, 

U.S. SENATOR FROM SOUTH CAROLINA 

Senator SCOTT. Thank you, Chairman Schatz. I will tell you that 

your invitation is now present. Here you are, sir. 

Senator SCHATZ. Thank you very much. 

Senator SCOTT. I look forward to seeing you in South Carolina 

and in Charleston, specifically, as well. 

Chairman Schatz, thank you for putting this subcommittee hearing together. I look forward to hearing from our panelists. There 

is no doubt, without any question, that one of the most important 

issues that we can discuss today is tourism, and the impact of tourism is fantastic. When we look at the economic output that is derived through tourism, we should be very excited about this conversation. 

Looking for ways to get us to the place where, by 2021, we have 

more than 100 million tourists, international tourists, coming to 

America is a laudable goal. Looking at the success that we have 

seen last year with the 4.7 percent growth to 70 million tourists, 

we are excited that the goal may soon be within our reach. 

I am excited to have on the panel Brad Dean. Mr. Dean is the 

CEO and president of the Chamber of Commerce in the Myrtle 

Beach area. And there is no doubt that when you get to know Mr. 

Dean, you will understand why I am so excited to have what I consider a force of nature before us. 

Here is a fellow who has gone the extra mile so consistently for 

the communities near Myrtle Beach, but also for South Carolina. 

When we think about the challenges of tourism, we think about the 

challenge of infrastructure when we think about Myrtle Beach. 

In fact, I think Myrtle Beach is perhaps the largest tourist destination without a major interstate taking folks there. I hope that 

you have an opportunity to talk about the necessity of further infrastructure investment. 

5 

In South Carolina, one out of every 10 jobs are connected to tourism, much to the credit of folks like Mr. Dean and others throughout South Carolina that make their primary focus tourism. 

I know we are not here simply to talk about South Carolina tourism, but I thought I would go ahead and entice you all to do what 

Chairman Schatz said and come to South Carolina real soon. Our 

success really has happened because of the ability of travel promotion to be prioritized in our country. That focus and that objective has been very successful. 

The notion of accessibility, we will have a chance to talk about 

the success that we have had in Myrtle Beach and throughout 

South Carolina with our Canadian friends, and what that means 

to tourism and what that means to the bottom line. 

And let me talk about the bottom line for just a few seconds here. With a $2.1 trillion economic output—$2.1 trillion economic output—nearly 15 million domestic jobs supported by tourism, I think 

the goal of reaching 100 million international visitors by 2021 will 

take those numbers up by another 30 percent to 40 percent, which 

means we could see another 3 million or 4 million jobs connected 

to the tourism industry, if in fact we are able to achieve our goals. 

2021 sounds like a long way away, but really, it is only 7 years 

from today. And if we are going to be successful, we are going to 

have to take on some critical areas, including two I would like to 

focus on, travel promotion and accessibility, in order for us to 

achieve that goal. 

I look forward to the comments from all the panelists, of course. 

And thank you, Chairman Schatz, for putting together this hearing. I look forward to your successful visit to South Carolina in the 

next few months. 

Senator SCHATZ. Thank you very much, Senator Scott. 

It gives me great pleasure to introduce our witnesses. Today, we 

have Roger Dow, President and CEO of the U.S. Travel Association; Chris Thompson, President and CEO of Brand USA; Mike 

McCartney, President and CEO of the Hawaii Tourism Authority; 

and Brad Dean, President and CEO of the Myrtle Beach Area 

Chamber of Commerce. 

Before we start, I want you to know that your full written statements will be made part of the record, and I would also like to remind you to please limit your oral remarks to 5 minutes. 

Mr. Dow, please proceed with your statement. 

STATEMENT OF ROGER DOW, PRESIDENT AND CHIEF 

EXECUTIVE OFFICER, U.S. TRAVEL ASSOCIATION 

Mr. DOW. Thank you very much, Chairman Schatz and Ranking 

Member Scott. You both understand this travel and tourism business as well as any of us at this table, so we appreciate all your 

support. 

You both did an eloquent job of giving the stats, the numbers, 

so I am not going to repeat what you said. It is big. It is big business. It is jobs. 

When you really look at it, the travel industry really was hit by 

the economic downturn like everyone else, but it is a resilient industry. We are already back. Since 2010, we have added 700,000 

jobs. We are back at record levels of employment. 

6 

And it is really an opportunity. We are adding jobs 49 percent 

faster than any other sector ofthe U.S. economy. And the nice thing 

about these jobs is they can’t be outsourced. When someone works 

in Myrtle Beach, South Carolina, or Hawaii, we can’t send them to 

another country to do their job. They have to be there in this industry. And it is a very labor-intensive industry. 

It is also an industry that provides great upward mobility. Everyone at this table is an example of that and how you can move up 

in this industry. 

If you look at 2000, we had 17 percent of the market share of 

the global international market. The rest of the world has discovered that travel and tourism it is a front door to economic development. And if you look recently, we have gone down in global 

marketshare to 13 percent. When you really look at that, there is 

a tremendous opportunity for growth. 

We have to promote. We have to increase facilitation. We have 

to improve infrastructure, as you said. 

There is a lot of good news with regard to Brand USA, which 

passed in 2010. Brand USA passed by a monstrous margin, 3 to 1 

in the Senate and 3 to 1 in the House. In fact, it passed several 

times. It passed by those big margins, because it made so much 

sense. 

The Travel Promotion Act (TPA) created Brand USA, which you 

will hear about from Chris Thompson, so I will not take his thunder. TPA created an opportunity for a public-private partnership. 

It gave an opportunity to level the playing field. Now small destinations can promote themselves, not just the large destinations 

with big budgets. These destinations can promote where they want 

to. 

The most important thing is by promoting the U.S., they are also 

able to explain our security policies and how to come to the U.S. 

Brand USA is really helping to restore our competitive advantage 

in travel and tourism, so we can get to that goal of 100 million visitors by 2021. 

Brand USA authorization goes through September of next year, 

and it is very important that it be reauthorized. Brand USA was 

a startup 2 years ago, now it is hitting full steam, and you will 

hear about some of their great success. 

The great thing about Brand USA is that not one penny comes 

from U.S. taxpayers. It is unlocking funds from international visitors, a small amount of funds, and from the private sector. This all 

supports American jobs and economic growth. 

If we get it reauthorized, as they say, it is quite a no-brainer. 

Senator Klobuchar and Senator Blunt have introduced legislation 

in the Senate to reauthorize it, and identical legislation has been 

introduced in the House. 

So my first ask is let’s attract 100 million visitors by reauthorizing Brand USA. Let’s move S. 2250 through this committee and 

get it to the floor to be passed. 

We have big developments in regards to our visa process. The 

State Department has reduced visa wait times for interviews by as 

much as 90 percent. We have reduced wait times from 120 days in 

places like China and Brazil down to 2 days. These improvements 

7 

contributed to a 66 percent increase in arrivals from China and a 

38 percent increase in arrivals to the U.S. from Brazil. 

We have added 11 Visa Waiver countries since 2008, which 

makes a huge difference in increasing travel to the U.S. The name 

‘‘Visa Waiver’’ can be a misnomer because it sounds like we are 

looking the other way on security. In fact, we are looking the right 

way, because the program increases security protocols between the 

two nations. To get into the Visa Waiver Program, you have to 

adopt strict security guidelines and information-sharing agreements. 

Since 2008, when South Korea joined the Visa Waiver Program, 

arrivals increased by 65 percent. So expanding the Visa Waiver 

Program should be a priority for Congress. 

You stated that travelers are frustrated when going through Customs. We must provide the resources to properly manage the entry 

process with more Customs and Border Protection officers. The 

2,000 Congress funded are great, but now we have to quickly identify where these officers are most needed and dispatching them to 

the most important ports of entry. 

The frustrations that global travelers have are the same as domestic travelers. I think the most important thing we can do is 

focus on really improving our infrastructure. Brad will tell you how 

he competes with congestion on the interstate highway system, not 

with other destinations. Travel to and within the United States has 

grown, and we must modernize and improve our aviation infrastructure. 

We have a passenger facility charge, which is $4.50, which hasn’t 

gone up since 2000. In order to fund critical modernization projects 

and increase capacity at our airports, we are asking to increase the 

fee to $8.50 to keep up with inflation. 

This is important stuff. I certainly appreciate all of your support 

and look forward to reauthorization of Brand USA. Thank you for 

your time. 

[The prepared statement of Mr. Dow follows:] 

PREPARED STATEMENT OF ROGER DOW, PRESIDENT AND CHIEF EXECUTIVE OFFICER, 

U.S. TRAVEL ASSOCIATION

Chairman Schatz, Ranking Member Scott and members of the Subcommittee: I 

am pleased to offer testimony on behalf of the U.S. Travel Association (U.S. Travel), 

the national non-profit organization representing all sectors of America’s travel community. I had the opportunity to testify before this Subcommittee three years ago 

about the ‘‘lost decade’’ from 2000 to 2010, which saw America’s share of the booming international travel market slip away. I return with good news—and with a prescription to spur even more growth and job creation. 

To address the topic of today’s hearing, the state of travel and tourism is very 

good. In 2011, I testified about the enormous untapped potential for economic 

growth if we made it a national imperative to increase travel to and within the 

United States. Today I can report remarkable progress toward the National Travel 

& Tourism Strategy goal of attracting 100 million international visitors by 2021. 

Last year, the U.S. welcomed a record-breaking 70 million international visitors, 

up 4.7 percent from 2012. This week, nearly 200 communities celebrated the economic impact these travelers have on local communities across America as part as 

part of National Travel and Tourism Week. This grassroots activity coupled with today’s hearing sends the right signal to millions of travel-related workers across 

America: that the White House and Congress agree that the United States will actively compete in the global travel marketplace. 

In all 50 states, travel provides good domestic jobs that cannot be outsourced. In 

2013, direct travel spending in the United States totaled $888 billion, which genVerDate Nov 24 2008 12:17 Feb 19, 2015 Jkt 075679 PO 00000 Frm 00011 Fmt 6633 Sfmt 6621 S:\GPO\DOCS\93275.TXT JACKIE
8 

erated a total of $2.1 trillion in economic output and $134 billion in tax revenue. 

Travel also directly employed nearly 8 million Americans and was among the top 

10 employers in 49 states and the District of Columbia. For example, in 2012 travel 

spending in Hawaii generated $18.6 billion in spending and $2.8 billion in tax receipts, while supporting 175,700 jobs. Similarly, travel employs 118,100 in South 

Carolina, generating $11.8 billion in spending and $1.7 billion in tax revenues. 

The travel industry was not spared by the economic downturn, but we are a resilient industry. Since 2010 we have added 697,000 jobs, restoring employment to prerecession levels. We helped lead the recovery by expanding employment at a 49 percent faster pace than the rest of the economy. And these are jobs with significant 

opportunity for upward mobility, compounding the benefits of this surge in job 

growth over time. 

Today, travel is the Nation’s number one industry export and is growing fast. Last year, travel exports grew 9.1 percent over 2012 to a record $180.7 billion (including 

traveler spending and international passenger fare payments to U.S. carriers), yielding a record $57.1 billion travel trade surplus. According to the first-ever government estimates of GDP growth by industry, travel was the second-fastest-growing 

industry in the Nation last year. 

The most lucrative segment of this sector is ‘‘long-haul’’ or overseas travel to the 

United States. Last year, nearly 32 million overseas travelers visited the U.S. For 

every 34 of these visitors, an additional American job is created. 

The overseas traveler stays longer and spends more while here—an average of 17 nights and nearly $4,500 per visitor per trip. Overseas visitors come to our cities 

and states to spend money and add few demands on public services. The turnstiles 

at our theme parks or national parks already exist; it’s just a question of how many 

more people we can attract to them. 

The potential for further growth is enormous. In 2000, the U.S. had a 17 percent 

share of the worldwide travel market. Last year, even as we competed better in the 

booming global travel market, with four years of sustained growth, our share was 

only 13.2 percent. If the U.S. could regain the 17 percent of global long-haul travel 

market share by 2020, we would add 49.8 million visitors, $222 billion in spending 

and 452,000 more jobs over that period. Our progress to date proves there remains 

tremendous room for further growth. 

Many of the obstacles to restoring our market share are self-imposed and thus 

can be overcome. The keys are to promote expanded international travel to the 

United States and to facilitate border entry for legitimate travelers—without in any 

way compromising security. 

I promised some good news and here’s the first piece: the performance of Brand 

USA. With strong bipartisan support, the Congress in 2010 enacted the Travel Promotion Act. That legislation created the public-private partnership now known as 

Brand USA. By promoting the United States as a destination and clearly explaining 

our security policies, Brand USA is helping to restore our competitive advantage in 

the world travel market. In four short years, Brand USA has become a powerful 

force for American job growth, leveraging partnerships with local travel and tourism 

entities in all 50 states for its global marketing campaign—all without a penny of 

U.S. taxpayer funds. This model of unlocking private sector funds without Federal 

taxpayers footing the bill is one that should be attractive across the political spectrum. 

The results are impressive. With an overwhelming return on investment, Brand 

USA last year attracted 1.1 million additional visitors to the United States—not 

only to gateway cities, but throughout our heartland. Now that Brand USA has hit 

its full stride, those numbers will continue to grow—but only if its authorization is 

extended. Last month, Senators Klobuchar and Blunt, joined by two dozen bipartisan cosponsors, introduced S. 2250 to reauthorize Brand USA for five years—identical legislation has also been introduced on a bipartisan basis in the House. 

So here’s my first ask to get us to 100 million visitors: please move S. 2250 through 

this Committee and pass it on the Senate floor this year. 

The success of Brand USA in turn increases demand on our visa process. In this 

area, I can report on three important developments since my last testimony. 

First, as part of its implementation of the National Travel and Tourism Strategy, 

the State Department made remarkable progress in reducing wait times for visa 

interviews in China, India, Brazil and other high-demand nations. By deploying consular personnel more nimbly and with a focus on customer relations, State has reduced delays in many countries by as much as 90 percent. 

Second, Taiwan and Chile became the 37th and 38th nations admitted to our Visa 

Waiver Program (VWP) allowing for reciprocal visa-free travel in return for stricter 

security protocols between our two nations. More than 19 million travelers, 60 percent of all overseas visitors to the United States, arrived last year through the VWP. 

9 

While here, they spend $79 billion and support more than a half-million jobs. Already, travel demand has risen sharply from Taiwan and Chile. This is no surprise, 

given the example of the staggering increase in visitors from South Korea since its 

inclusion in VWP in late 2008. Within five years, a record 1.3 million visitors arrived in the U.S.; and the pace of increase since has only picked up steam, growing 

by 65 percent since 2008. In 2012, South Koreans traveler spending was $4.2 billion—52 percent higher than in 2008. Travel is now the fifth-largest U.S. export to 

South Korea, constituting seven percent of total U.S. exports to Korea. Most importantly, Korea’s travel spending in the U.S. in 2012 supported 36,200 American jobs. 

Third, as part of the comprehensive immigration reform package passed last year, 

the Senate endorsed the ‘‘Jobs Originating through Launching Travel’’ (JOLT) Act, 

bipartisan legislation to accelerate progress further. The counterpart House bill 

(H.R. 1354), now pending with 150 cosponsors, would likewise expand the VWP and 

Global Entry program, reduce visa processing delays, enhance travel to the U.S. 

during low peak seasons, provide accelerated visa processing for a fee and test the 

use of secure videoconference technology for visa interviews. 

All these changes would address problems first identified in a comprehensive 2011 

U.S. Travel report. Our analysis showed that delay, cost, access and unpredictability 

in the visa process served as a barrier for potential visitors and contributed to our 

lost market share. Progress has been made on these fronts, and the bill would codify 

standards and practices which will become only more critical as demand continues 

to rise. 

We commend the Senate for including the JOLT Act in the comprehensive immigration package passed last year by this chamber and urge your continued work to 

enact these travel facilitation provisions into law. Combined with other visa-related 

reforms—from extending the term of U.S. visas for Chinese travelers to permitting 

sub-national territories to enter the VWP—this legislation would vault us to the 100 

million-visitor mark. 

But all our work to promote the U.S. brand and to ease inefficiencies in the visa 

process will be ineffective unless we also improve the entry experience at our borders. Last year, a U.S. Travel-commissioned survey of 1,200 overseas travelers from 

six top travel markets yielded these extremely disappointing results: 

• Forty-three percent of those who visited the U.S. said they would recommend 

avoiding a trip because of entry process hassles; 

• One in seven travelers said they missed a connection because of entry process 

delays; 

• Visitors report they would share their entry experience with an average of eight 

other people; and 

• Among potential business travelers, 44 percent said they will not visit the U.S. 

in the next five years because of the inefficient entry process. 

As discouraging as those reactions were, here’s the one most important takeaway: 

almost two-thirds said that eliminating long lines and wait times would make the 

U.S. a more attractive destination. In other words: if we fix it, they will come. 

When they do, there must also be greater accountability. Just as our Nation set 

a goal for attracting 100 million visitors to the U.S., we need to process each arriving passenger within 30 minutes under normal operating conditions. Among survey 

respondents who had never come to the U.S., 40 percent said they would consider 

a visit if they knew they could count on timely entry processing. 

That means we must provide the resources to properly manage the entry process—and the Congress has recently taken giant steps in that direction, with funding 

for 2000 new U.S. Customs and Border Protection (CBP) officers. CBP should be 

commended to working quickly to identify where these officers are most needed and 

dispatching them by October 2015 at 44 ports of entry in 18 states. In addition to 

new officer staffing, CBP has worked to identify innovative ways to address the 

growth in traveler volumes. For example, CBP has continued to promote the use of 

Global Entry, a trusted traveler program that now has 1 million participants. Furthermore, they have partnered with America’s gateway airports in developing new 

kiosks that make the processing experience more efficient. 

This is all great news that should help CBP to meet a 30-minute passenger processing goal at our air ports of entry and drive tens of billions of dollars in new visitor 

spending—as long as the new officers are accompanied by transparent metrics to 

demonstrate improvement in the actual passenger experience. 

Domestic travelers face some of the same travel-related frustrations, starting with 

the aviation security system. Many of the problems in this area stem from a refusal 

to accept any risk in the system. In the past, continual layers of security were added 

to address almost every conceivable threat. Even worse, few efforts were made to 

10 

scale back, eliminate or tailor these layers for fear of being perceived as ‘‘weak’’ on 

security. As a result, travelers were stuck with an inefficient, one-size-fits-all 

screening process that hurt our economy and burdened American taxpayers. 

U.S. Travel agrees with TSA that these trends can only be reversed by using a 

risk-based approach with three critical elements. First, TSA and Congress must 

clearly identify the types of threats TSA is responsible for preventing. Second, relying on the latest intelligence, TSA must apply its limited resources to the highest 

priority threats. And third, TSA should always strive to provide the greatest level 

of efficiency in passenger screening, while maintaining security. 

With support from Congress and the private sector, TSA is now using a more riskbased approach. Specifically, U.S. Travel applauds TSA for creating and rapidly expanding PreCheck. This program increases security and efficiency and could eventually also reduce budget costs—just as Global Entry does for international travelers. 

One additional priority that often gets overlooked is the need for baseline travel 

data on international visitors. The most important—and seemingly vulnerable—is 

the monthly Survey of International Air Travelers (SIAT). Initiated by the Commerce Department in 1983, the SIAT provides information on visitors’ length of 

stay, level of spending and activities during their stay. 

These data help determine policies which, in turn, have helped drive industry jobs 

growth and we urge approval of the modest funding to grow and improve the SIAT. 

As critical as are promotion, visa reform, the entry experience and data collection, 

all are dependent on the safety and efficiency of fundamental transportation infrastructure. The United States simply cannot meet its goals to increase domestic and 

international travel without greater investments in our aviation and surface transportation networks. Within the next five years, 24 of the top 30 U.S. airports will 

experience Thanksgiving-like congestion at least one day per week. And the FAA 

predicts that 27 airports located in 15 cities won’t have enough capacity to meet demand by 2025. At JFK and EWR alone, an inability to meet air travel demand will 

cost the U.S. economy $6 billion annually by 2016. 

In order to ensure a vibrant and globally competitive travel industry, Congress 

must act to modernize and improve U.S. aviation infrastructure. This committee can 

help to lead this effort by accelerating deployment of the Next Generation Air Transportation System (NextGen) and allowing U.S. airports to raise their Passenger Facility Charges by up to $8.50, in order to fund critical modernization projects. 

Studies by U.S. Travel also show that within 10 years, major interstate corridors 

will experience daily congestion equal to Labor Day levels of traffic—and that air 

travel will grow from 800 million enplanements per year to almost a billion. If our 

infrastructure is inadequate today, it is completely unprepared for tomorrow. According to the 2013 survey, 38 percent of travelers would avoid between one and 

five trips annually if congestion continues to worsen—which will moot all the rest 

of our work toward attracting 100 million visitors. 

As travel to and within the United States has grown, our transportation network 

has failed to keep pace. While maintenance and modernization are expensive, failure 

to act will cost more. 

Finally, I would like to add a few words about two related concerns. First, while 

the word ‘‘travel’’ frequently connotes tourism, it is about much more than fun in 

the sun. Business travel accounts for 30 percent of all travel spending. In 2013, 

business travel generated an estimated $267 billion in direct spending—three percent higher than the previous year. Totaling the deals done, products sold and opportunities created at industry conferences and trade shows that also employed 

scores of hospitality workers, business travel directly supports 2.3 million American 

workers. 

I also wish to address the specific question of travel by Federal employees. A key 

reason business travel is a strong economic driver is that face-to-face interaction 

leads to greater productivity, a fact that Members of Congress know well. Tele-townhalls are not as effective as personal meetings with constituents, and traveling to 

Washington to work directly with congressional colleagues can’t be replaced by a 

‘‘virtual’’ Congress. To do their work, other Federal employees also need to attend 

occasional meetings and conferences. When conducted responsibly, Federal travel 

yields important returns on investment—from safety inspections to disaster relief 

assistance to professional training. In 2012, government travel generated $33 billion 

for the U.S. economy and directly supported 296,000 American jobs. 

We agree there is no place for waste or excess in government conferences or meetings. And we support strict compliance with best-practice guidelines established by 

the Office of Management and Budget, together with individual agencies. But we 

also know the dangers of across-the-board reductions that don’t distinguish meritorious travel that achieves important public missions—and urge you to keep that 

distinction in mind as these issues arise. 

11 

Again, thank you Chairman Schatz, Ranking Member Scott and all members of 

the subcommittee for inviting me to testify today. I look forward to answering your 

questions. 

Senator SCHATZ. Thank you very much, Mr. Dow. 

Mr. Thompson? 

STATEMENT OF CHRISTOPHER L. THOMPSON, 

PRESIDENT AND CHIEF EXECUTIVE OFFICER, 

CORPORATION FOR TRAVEL PROMOTION (BRAND USA) 

Mr. THOMPSON. Good morning, Chairman Schatz, Ranking Member Scott. Thank you for the opportunity to be here and talk about 

the Corporation for Travel Promotion, which is doing business as 

Brand USA. Thank you also for your appreciation for our industry 

and your comments on the frontend, as it relates to the impacts 

that it provides in each of your states. 

Brand USA is the national not-for-profit public-private partnership that was created by the Travel Promotion Act. Its main function is to promote the United States around the world as a premier 

travel destination and also to communicate visa and entry policy. 

Brand USA’s global efforts play a substantial role in reaching the 

goal established by the national travel and tourism strategy to attract 100 million annual international visitors that will contribute 

to $250 billion. 

By executing the first-ever integrated marketing communications 

plan, Brand USA is attracting new international visitors to and 

through and beyond our gateways. I think that is a point that 

Roger brought up, and it is something really critical to what we do 

on a regular basis. 

I also would like to emphasize one of the facts that Roger 

brought up, that is this is done with the zero taxpayer dollars. It 

is visitors paying to grow the visitor industry. 

Our marketing plan consists of three main buckets. It is direct 

to consumer in the markets that we promote in around the world, 

which we are now in 30 different markets around the world. It is 

a cooperative marketing platform and programs that we do in partnership with our partner states and our partner cities. And it is 

also our trade outreach. Much of travel is facilitated by the travel 

trade, still in our emerging markets and, certainly, in our existing 

markets. 

The consumer campaign is a fully integrated campaign that consists of broadcast television, billboards, out of home advertising, 

and we are very active in social and digital platforms. 

We also market through a global and growing network of representation firms that help us navigate the cultures and mediums 

in all the markets that we are involved in around the world. 

Our marketing campaign invites the world to discover this land 

like never before. It not only encourages travelers to see it for the 

first time, but to see it for the first time again by those who have 

come in the past. 

By 2014, our consumer campaign will now be in 10 markets. 

Those 10 markets account for 75 percent of all the travel to the 

United States. We now have over 100 cooperative marketing platforms that provide over 200 different marketing opportunities for 

our partners to be engaged and be involved with us. 

12 

Our partners highlight and reach all sorts of sectors. We have 

platforms that promote the great outdoors, that promote culture, 

that promote indulgence through spas and whatnot, and through 

urban excitement. 

Our business-to-business platforms, we work obviously with our 

supplier partners here in the United States that represent the destinations and the hospitality brands, and then we work with our 

buyer partners all over the world as they help facilitate travel and 

help us tell our story. 

Our partners represent all sectors of industry, and it represents, 

more importantly, large and small. A majority of businesses that 

are involved with us now, 400 partners, actually represent small 

businesses that make up the backbone of the community. 

And probably the most important partner we have is the Federal 

Government. Without the Federal Government’s commitment to 

travel and tourism, and providing the funds that are attributed to 

our marketing program, we could not lay the foundation of the 

marketing efforts that we put out there. And it would not attract, 

last year, the $134 million that the private sector brought to the 

table to complement what the Federal Government put in place. 

One of the most recent things that we are very proud of is Oxford 

Economics, a recognized expert in our space, put out a study that 

suggested that what we are doing in cooperation with our partners, 

our supplier partners here in the United States, our buyer partners 

from around the world, accounted for last year, in 2013, 1.1 million 

incremental visitors that spent $3.4 billion. 

When you churn that through the economy, it meant $7.4 billion 

in overall economic impact. It supported 53,000 jobs. It generated 

over $1 billion of sales tax at the Federal, State, and local levels. 

And again, that was with zero taxpayer dollars. 

That return on investment of what we put in and what was returned was a 47 to 1 return. So we are obviously very proud that. 

In conclusion, as Roger said, our work has only just begun. We 

are in our fourth year of existence, third year of operation. But we 

are really now just hitting on all gears. 

We look forward to our partnership with the Federal Government. We are fully engaged through the Department of Commerce 

with the Tourism Policy Council that now has nine Federal agencies fully recognizing the contributions that the Nation’s number 

one service export provides to the United States. 

And also, it provides one of the most positive balances of trade. 

So we feel very fortunate to be able to be partnering with the Federal Government. We feel indebted to our partners who recognize 

the value that we bring to the equation, and we look forward to 

doing more great things in the years ahead. 

Thank you for the opportunity to be here, and I look forward to 

answering any questions you may have. 

[The prepared statement of Mr. Thompson follows:] 

PREPARED STATEMENT OF CHRISTOPHER L. THOMPSON, PRESIDENT AND CHIEF

EXECUTIVE OFFICER, CORPORATION FOR TRAVEL PROMOTION (BRAND USA) 

Introduction 

Chairman Schatz, Ranking Member Scott and Members of the Subcommittee: I 

am pleased to offer testimony on behalf of the Corporation For Travel Promotion, 

13 

which does business as Brand USA. Brand USA is the national, non-profit, publicprivate partnership established by the Travel Promotion Act to promote the United 

States as the world’s premier international travel destination and communicate visa 

and entry policy. Our mission is to increase international visitation to and spend 

in the United States in order to create jobs, grow exports and fuel the U.S. economy. 

As one of the best levers for driving economic growth, international travel to the 

United States currently supports 1.8 million American jobs and benefits virtually 

ever sector of the U.S. economy. 

I thank you for the opportunity to testify today and discuss how Brand USA’s 

global efforts play a substantial role in reaching the goal established in the National 

Travel and Tourism Strategy of 100 million annual international visitors generating 

$250 billion in spend by 2021. 

International visitation contributes to the U.S. economy as the leading services 

export and one of the few areas in which the U.S. has a trade surplus. According 

to statistics from the U.S. Travel Association, international visitors spend on average $4500 per person during their trip and every 33 overseas visitors creates one 

new American job. 

By executing the United States’ first-ever integrated marketing communications 

plan promoting the entirety of the United States, Brand USA is attracting new 

international travelers to, through and beyond the gateways. 

Our 400 partners represent private industries within and outside the travel industry from around the world and the United States. Many of these partners are 

destination marketing organizations, travel agents, tour operators, hotel and lodging 

companies, leading car-hire organizations and airlines. Our partners also include 

Major League Baseball, ESPN, the National Football League as well as leaders in 

the retail sector like Macys, Mall of America, and America’s Premier Shopping 

Places. 

One of our most critical partners is the Federal Government, without whose support through the Travel Promotion fund and coordinated effort toward the goal of 

welcoming 100 million international visitors in one year, would make our ability to 

achieve our mission very difficult. The public-private partnership that is at the core 

of Brand USA’s business model enables both gateway destinations and destinations 

well beyond the gateways to participate effectively in the international tourism marketing effort. 

Our partners, large and small, have seen the value of working with Brand USA 

in increasing international visitation to their states, cities, attractions and destinations. As a result, we have been able to earn a 97 percent core partner retention 

rate and significantly expand our partnership base to include smaller destinations 

and organizations—many of which are the backbone of local economies. 

It is particularly notable that $0 taxpayer dollars are used to fund the marketing 

effort. 

Background 

Since the passage of the Travel Promotion Act in 2010, Brand USA has created 

a full-scale marketing campaign consisting of consumer, co-operative marketing and 

trade outreach in 10 markets with trade outreach or marketing initiatives in more 

than 30 markets all at no cost to the U.S. taxpayer. 

The Travel Promotion Act was signed into law in 2010, creating Brand USA. In 

the fall of 2010, the U.S. Department of Commerce selected a Board of Directors. 

As required by the Travel Promotion Act, applicants across several sectors of the 

travel industry, including representation from the hotel and lodging, restaurant, 

small business or retail, travel distribution, attractions, city convention and visitor 

bureau, passenger air, intercity passenger railroad sectors as well as a member who 

has immigration law and policy expertise were selected. Brand USA hired its first 

employees in the spring of 2011. Those initial employees established what was a 

true start-up: there had not been an organization to ever market the USA as a 

whole. Research was conducted in 17 countries to guide our initial marketing campaign, partnerships were developed and established and policies and programs were 

put in place. 

Brand USA launched its marketing efforts in May of 2012 in the United Kingdom, 

Japan and Canada. The campaign encouraged visitors to ‘‘discover this land like 

never before’’ and showcased to these markets, a United States that is not only welcoming, but is a country full of vast experiences and endless travel possibilities. 

In our first year we received contributions from the travel industry in order to 

receive the full Federal match of $100 million, as allowed by the Travel Promotion 

Act. Without first receiving private sector contributions, Brand USA is not eligible 

to receive any Federal funds. The Federal funds that supply the Travel Promotion 

Fund are collected from a portion of the fees paid by international travelers from 

14 

visa waiver countries, known as the Electronic System For Travel Authorization 

(ESTA) fee. Applicants pay a fee of $14 that is valid for travel within a two-year 

period or when a traveler’s passport expires—whichever comes first. The fee is split 

between Customs and Border Protection and the Travel Promotion Fund with $4 

going to Customs and Border Protection to run a security check and $10 going into 

the Travel Promotion Fund. As a result, all of our marketing efforts are at zero cost 

to the U.S. taxpayer. 

Brand USA is eligible to receive money from the Travel Promotion Fund at a onefor-one basis, up to $100 million per Federal fiscal year. These funds can be unlocked through contributions of cash or in-kind such as airline tickets, hotel rooms, 

cooperative advertising or content (photos, videos) for use in our marketing efforts. 

These in-kind contributions have a fair market value determined by established 

methodologies created in cooperation by the Department of Commerce and Brand 

USA. Additionally, each submission goes through a thorough review by several offices within the Department of Commerce. Currently, The Travel Promotion Act requires that we receive 20 percent of our funds through cash contributions. 

The ESTA fees collected actually exceed $100 million per year, with that overage 

going to Federal deficit reduction. The Congressional Budget Office has assessed 

that to be $425 million over a ten-year period. 

In 2013, we increased the number of markets we are deployed in from three to 

nine, adding Australia, Brazil, China (including Hong Kong and Taiwan), Germany, 

Mexico and the Republic of Korea. We ended the Federal fiscal year with 340 partners who had contributed nearly $130 million to our efforts. 

Our marketing efforts are having a significant and positive impact on international arrivals. Oxford Economics, a worldwide leader in economic impact studies, 

recently released a study on Brand USA’s impact on travel for 2013. They analyzed 

our efforts in eight markets, of which we were marketing the United States 

throughout the year. The study showed that Brand USA’s marketing campaigns 

generated 1.1 million incremental visitors to the United States during 2013. These 

additional visitors spent $3.4 billion in the United States, including travel and U.S. 

carrier fare receipts. 

This spending fueled the U.S. economy by generating $7.4 billion in business 

sales, $3.8 billion in GDP, and $2.2 billion in personal income, as well as supporting 

over 53,000 new jobs in the United States. These results equate to a marketing return on investment of 47:1 based on Brand USA’s marketing expenses of $72 million 

and incremental international visitor spend of $3.4 billion. Notably, these results exceed projections of Brand USA’s potential impact, which were estimated during the 

contemplation of the passage of the Travel Promotion Act. 

In 2014, Brand USA has introduced new programs and platforms within our 

broad range of marketing efforts to help reach the 100 million-visitor goal. We have 

increased the number of partners to 400 and anticipate this year’s contributions will 

exceed last year’s. 

As I mentioned, we are also proud of the fact that we have had a 97 percent partner retention rate from our first year to our second signaling to us that our partners 

believe we are accomplishing our mission and adding or creating value for the mutual benefit of these organizations and the local economies they represent. We have 

also been able to keep our administrative/overhead costs to approximately 10 percent a year, ensuring that the vast majority of our budget is spent on marketing 

the United States as the premier travel destination. 

Last year, the Government Accountability Office conducted its second programmatic assessment of Brand USA. The report concluded that we are effectively 

and efficiently marketing the United States as a whole and doing so in compliance 

with the Travel Promotion Act and other standards. 

Brand USA’s Efforts to Reach 100 Million Visitors Annually 

Here is a more in-depth overview of each aspect of our marketing efforts and how 

they will help us contribute towards reaching the goal of 100 million international 

visitors by 2021: 

Consumer Campaign: The consumer campaign is a fully integrated multi-channel campaign—comprised of TV advertising, billboards, and other out of home 

media, print and social media—plus direct in-market marketing through a global network of representation firms being established in key international markets. 

Country specific Facebook and Twitter pages showcase targeted promotions and 

our website DiscoverAmerica.com acts as an information portal for trip inspiration and planning. 

15 

The key message in the campaign is to ‘‘Discover this land, like never before.’’ 

We also wanted to spread the USA’s welcoming message around the world, inviting travelers to visit us and see us again—or for the first time. 

Through this call to action, we are reminding the world’s travelers that the 

United States is a land of possibilities—from the well-known, iconic places to 

go, as well as destinations beyond the gateway. Throughout the United States, 

the District of Columbia, and the five territories, there are virtually limitless 

experiences to discover. 

Brand USA bases its target market selection on a quantitative model that consists of a variety of factors, including: macroeconomic factors, such as GDP 

growth; demographic factors, such as population size and age; sociopolitical factors, such as civil liberty; situational factors, such as visa waiver status; and 

diversification factors, targeting a mix of established and emerging markets. 

By doing so, we are ensuring that we are concentrating our marketing efforts 

in the right markets that have the greatest potential for sustained and continued growth in order to achieve the goal of the National Travel and Tourism 

Strategy of 100 million annual visitors by 2021. 

To that end, by the end of 2014, Brand USA will be fully deployed in 10 markets with an integrated consumer campaign, co-op marketing and trade outreach in: Australia; Brazil; Canada; China; Germany; Mexico; New Zealand; 

Japan; South Korea and the United Kingdom. 

Our country specific social media efforts have generated over 5 million fans 

throughout the globe, mostly in our target markets. Over the course of this 

year, we are featuring various content campaigns on our website and social 

media channels designed to showcase the vibrancy and depth of tourism opportunities that the USA has to offer. 

The first campaign ‘‘Great American Road Trips’’ covers 39 states across the 

United States on our websites and social channels. To bring this content to life 

we have sent influential international travelers to experience these road trips 

first hand and share their travel stories with their fans. Each road trip was 

paired to a country interested in that region. We have had amazing results so 

far and millions of engagements, and the campaign continues throughout the 

summer. 

In anticipation of the centennial of the National Park System, Brand USA, in 

partnership with a leading producer of giant screen films, is producing a giant 

screen film celebrating travel to the United States and in particular our national parks and Federally managed lands. This giant screen film will capture 

the myriad of experiences available through the Nation’s great outdoors and inspire visitors to discover the beauty and diversity across the United States. 

This initiative is a great opportunity to not only showcase our National Parks, 

but to reach a large number of our key international markets. There are over 

800 giant screen theatres in over 57 countries and that number is growing. 

China, one of the United States’ top 10 countries in both international visitation 

and spend, has the second largest market with over 75 giant screen theatres 

located throughout the country. Giant screen theatres can be found in many of 

Brand USA’s key target markets. 

Cooperative Marketing: Our co-op programs and platforms include a variety of 

opportunities for partners to support and engage in the national marketing effort to increase visitation and spend in mutually beneficial ways. 

Brand USA has created over 100 new programs to give partners over 200 opportunities to promote their destination and encourage travel to the United States. 

These programs reach and inspire travelers highlighting the diverse and unique 

travel experiences in the United States from the great outdoors, to culture, to 

indulgence, to urban excitement. We have platforms that promote retail experiences, recreational pursuits and cultural activities. 

Brand USA has created several original co-operative marketing platforms including: Discover America Global Inspiration Guides (language-specific guides), 

Marketing and Advertising Opportunities on DiscoverAmerica.com (Brand 

USA’s consumer website), Media Planning and Buying (coordinated efforts to 

amplify international advertising efforts), Custom In-Country Multi-Channel 

Programs (print, digital, video, e-mail, radio and television), Media/PR and 

Travel Trade Outreach (online platforms that enable destinations, attractions 

and travel brands to connect directly with international journalists and travel 

professionals), USA Discovery Programs (online training tool to educate the 

16 

international travel trade to sell the diverse destinations and experiences available in the USA). 

Many of these programs allow destinations to target markets and create opportunities to increase visitation that they wouldn’t be able to do without our existence. For instance, the Discover America Inspiration Guides are sent out 

throughout our markets and have participation from large and small, urban and 

rural destinations. These inspiration guides explore some of the most authentic 

travel experiences and destinations in the U.S. We print 500,000 copies in several different languages and the digital editions receive over 100 million impressions. Because of the size and scale that Brand USA can produce, destinations 

are able to tailor their participation in a way that allows them to gain exposure 

far beyond what they would be able to create with spending the same amount 

on their own. 

Virtually every state, the 5 territories, and the District of Columbia contribute 

to the production of these inspiration guides. Alaska, Arkansas, Hawaii, Massachusetts, Minnesota, Missouri, Montana and South Carolina, have contributed 

to be featured in the inspiration guide. Every state, whether they contribute or 

not, is a part of the guide to ensure Brand USA is marketing the whole of the 

United States. The guide also provides information on visa and entry requirements into the United States. 

Trade Outreach: The business-to-business marketing efforts includes trade 

shows, sales missions, road shows, themed events, training initiatives, mega-familiarization tours of various destinations, and advisory boards—all designed to 

engage and influence tour operators, travel agents and other travel professionals to increase business and leisure bookings to the United States. As part 

of the business-to-business effort, Brand USA is establishing one of the largest 

networks of international representation firms to support its efforts internationally. 

American Airlines and British Airways have collaborated with Brand USA to 

conduct what is called a ‘‘mega-familiarization (megafam)’’ tour in 2013 and 

2014. Familiarization tours, or ‘‘fams,’’ are an integral part of Brand USA’s marketing strategies to create awareness of the diverse destinations and travel experiences that are available throughout the United States and increase international visitation to and beyond the gateways. When fam tour participants experience the USA first hand, they are able to better relay information to their 

clients. The Brand USA fam tours are called ‘‘MegaFams’’ because they are the 

largest simultaneous familiarization tours conducted in the United States—and 

as such, represent something only Brand USA through a coordinated national 

tourism effort can do. 

British Airways encourages travel agents within the United Kingdom and the 

Republic of Ireland to sell trips to the United States on British Airways within 

the first quarter of a calendar year. Agents become eligible to participate when 

they complete an online training program that was designed by Brand USA and 

created specifically to educate agents to better sell the U.S. market. The top 100 

highest selling agents join the MegaFam and are split into groups to experience 

different itineraries across the United States. 

These itineraries include not only the gateway cities that British Airways flies 

into but more off-the-beaten-path destinations as well. For instance this year, 

travel agents will visit Arizona, California, Colorado, Florida, Georgia, Massachusetts, Nebraska, Nevada, New Hampshire, New Mexico, New York, North 

Carolina, South Carolina, South Dakota, Texas, Utah and Vermont. Other 

states were featured the year before included Minnesota, Pennsylvania and 

Wisconsin. We work with our local partners in each of those states to help 

showcase what each location has to offer. The travel agents participate in social 

media programs while on the trip to learn what the other agents are covering 

across the different itineraries. They return to their home markets with a greater awareness, enthusiasm and knowledge for each destination and therefore are 

able to better sell and increase travel to those locations. 

We have also conducted familiarization tours for travel agents and journalists 

with Delta Airlines, Qantas Airlines, Lufthansa Airlines and are developing 

similar efforts with several other potential partners. 

Familiarization tours are a great example of in-kind contributions we receive. 

The airlines we partner with provide plane tickets for travel agents, tour operators, and journalists to participate, and all of the local entities help provide 

lodging, meals and other activities. Often times smaller establishments are unVerDate Nov 24 2008 12:17 Feb 19, 2015 Jkt 075679 PO 00000 Frm 00020 Fmt 6633 Sfmt 6621 S:\GPO\DOCS\93275.TXT JACKIE
17 

able to participate in large scale international marketing efforts but can make 

in-kind contributions as part of these familiarization tours. 

One of the other successes in engaging the travel trade is increasing and improving the presence of U.S. destinations at international trade shows. Prior to 

our existence, U.S. destinations and entities would attend these shows separately, competing with countries that would have (due to their size and budgets) 

a much greater presence. 

In creating and hosting Brand USA pavilions, we have brought U.S. participants 

together and given the country the presence that truly reflects what the United 

States has to offer. These pavilions allow entities to share a combined space and 

help reduce the cost of participating in these shows as well as creating far more 

interaction with tour operators and travel agents. As a result of our efforts, trade 

show participation by U.S. destinations and entities has increased in many markets. 

Partnership with Federal Partners 

To efficiently pursue the goals of the National Travel and Tourism Strategy, 

Brand USA and the interagency Tourism Policy Council coordinate a variety of activities. These activities, which ultimately involve the engagement of nearly a dozen 

Federal agencies, include things like clarifying visa policy and promoting Global 

Entry, promoting Federally-managed areas, and building promotional programs 

with government agencies. Some highlights of this collaborative approach include: 

• Laid the foundation for strategic marketing collaboration with the Tourism Policy Council—including thematic promotions like culinary and great outdoors 

and geographic focuses in key markets. 

• Developed a program with the Tourism Policy Council Marketing and Promotion Working Group to showcase the culinary travel experiences in the 

United States, including a culinary guide to inspire travel to the United States, 

a digital platform, and in-market PR from renowned American chefs. 

• Began work with the Departments of Interior, Agriculture, Commerce and the 

Army Corps of Engineers to promote America’s national treasures through a 

digital focus on the great outdoors and a giant screen feature film that will be 

produced in time for the Centennial of the National Park Service. 

• Collaborated with the Foreign Commercial Service and the State Department 

to equip diplomatic personnel with high-quality marketing materials for embassy facilities and promotional events, including video, poster and banner files. 

• Brand USA initiated and completed a redesign of the consular area at U.S. Embassy London to make it a more welcoming environment and distribution information to waiting visa applicants on travel experiences in the United States. 

• Brand USA continues to work with U.S. Foreign Commercial Service and State 

Department personnel on a wide variety of in-market activities around the 

world including trade shows, industry roundtables, trade and sales missions, PR 

events, and promotional opportunities in markets where Brand USA does not 

have a presence. These events promote travel to the United States and communicate visa and entry policy and changes to those policies such as ESTA familiarization in places like Taiwan and Chile that recently joined the Visa Waiver 

Program. 

These highlights only begin to tell the tale of the united front that our Federal 

partners and the travel industry are presenting to the world. By leveraging the best 

of each other’s efforts, the National Travel and Tourism Strategy is helping our public-private collaboration live up to all that it was intended to be. 

Conclusion 

In summary, Brand USA is effectively and efficiently fulfilling its mission as prescribed by the Travel Promotion Act. 

But our work has only just begun. In fact, the work of Brand USA is more important than ever. While we have been able to incrementally increase international visitation to the United States, we still have a lot of ground to make up to get even 

close to the market share we once enjoyed more than 10 years ago. Between 2000 

and 2010, the U.S. share of international arrivals dropped 36 percent (from a market share of 17 percent to 12.4 percent), which equates to a loss of 78 million visitors, $606 billion international spend, and support for 467,000 jobs annually. 

Now in our third full year of operation, Brand USA is demonstrating that a nationally coordinated tourism marketing effort through a public private partnership 

can make a significant difference in competing for the share of the world travel market. The 1.1 million incremental visitors we generated were from just eight markets 

18 

where we were fully deployed last year. Imagine what the results will be as we fully 

deploy our marketing efforts to additional international markets. 

We will continue to build on the success we already have had and will continue 

to operate in an efficient and transparent manner. As we continue to grow and increase the number of partners and programs, we will help fulfill the goal of the National Travel and Tourism Strategy of welcoming 100 million annual visitors by 

2021. Our efforts will continue to help increase visitation and therefore improve the 

economy, create jobs, increase revenue and exports across the entire country. 

Thank you for the opportunity to testify before you today. I would be happy to 

answer any questions you might have. 

Senator SCHATZ. Thank you, Mr. Thompson. 

Mr. McCartney? 

STATEMENT OF MIKE MCCARTNEY, PRESIDENT AND CHIEF 

EXECUTIVE OFFICER, HAWAII TOURISM AUTHORITY 

Mr. MCCARTNEY. Aloha, Mr. Chairman. 

Senator SCHATZ. Aloha. 

Mr. MCCARTNEY. It is a pleasure and honor to be here before 

you. And on behalf of all your friends back in Hawaii, we are very 

proud that you are chairing this committee, so thank you for the 

opportunity, for all the gentlemen here. 

I would like to introduce Ron Williams, who is in the back there. 

He is the Chair of the Hawaii Tourism Authority. 

So thank you very much. I would like to share a quick story with 

you of where we are at, where we are going, and some Federal initiatives that you may be interested in. 

I think, just looking quickly back at 2008, it was a tough time 

for us, a tough time for the country. What happened to Hawaii? 

Five really bad things happened. 

We lost one major airline, ATA. They went bankrupt. We lost 

Aloha Airlines, a neighbor island carrier. We lost 1.4 million air 

seats. We lost 1 million visitors. Oil reached $150 a barrel. We had 

the Lehman Brothers financial meltdown. And we had the H1N1 

virus. 

It hit us all at once. Our tax revenues went from over $1 billion 

coming in from visitors to less than $935 million. 

Slowly, we have climbed back out of it. We now raise about $1.7 

billion in State tax revenue, because of that, about $15 billion is 

generated through our visitor industry. But it was a long climb 

coming back out. 

So when we talk about tourism, I will talk about three purposes 

and then maybe how we can tie into the Federal side. 

I think the lowest level, and best level, to explain is jobs and resources. If you look at tourism, it is a great export. And for Hawaii, 

every single day, visitors spend $43 million out of their pocket, 

their hard-earned money, private capital coming into Hawaii that 

they spend on a vacation. 

And about $20 million on Oahu, about $11 million in Maui County, $6 million in Hawaii County, and about $4 million in Kauai 

County. Every single day. That is about $4.7 million in State tax 

revenue that goes to pay teachers, that funds the State budget. 

It supports 175,000 jobs. So for every 49 visitors that get off a 

plane in Hawaii—because you can’t drive in; you have to get off a 

plane—— 

[Laughter.] 

19 

Mr. MCCARTNEY.—it supports one job in our state. 

So it is very, very important, and it provides a way of life. 

Number two, it provides access. We only have 1.3 million people. 

We are 2,200 miles away from the nearest land. However, we have 

10.5 million air seats, probably 11 million by the end of this year 

when you count charter flights. 

You think about that, we have about 920 flights a week, from 53 

cities around the world directly connected to the Hawaiian Islands 

by 21 different carriers. 

That gives us strategic access to the world. That gives the world 

access to us. And it gives us access to the world. 

When you think about innovation, what a great opportunity for 

higher education, people coming to Hawaii and going to school. 

Just one idea to create innovation off of. 

I think the highest level and highest benefit from tourism is it 

gives us purpose. Some places have mines, and they are proud of 

it. Some places have automobile factories, and they are proud of it. 

Some places have casinos, and they are proud of it. 

In Hawaii, we have guests. People, they come and they visit. 

They experience our people. They experience our place. They experience our culture. 

Somehow, they go back home a little better than they were. We 

benefit from that because we learn a lot from them. 

So it creates purpose. It creates a sense of purpose of who we 

are. And when you look at travel, it is more than a business. And 

if you look at an ancient Hawaiian proverb that was given to us 

by one of our kupuna, Aunty Pilahi Paki, she said, as the world 

searches for peace, the world will turn to Hawaii because Hawaii 

has the key, and that key is aloha. 

So what we like to think that we are in the business of is that 

we are not just making money. We are not just creating jobs. But 

we are creating this opportunity for peace. 

So when we work with you on the Federal level, we have listed 

about nine priorities that we would like you to maybe consider. We 

know you have been a strong advocate for opening up Kona, so I 

won’t go into that. 

We are the fourth largest port of entry for the United States. We 

have grown at 25 percent in international arrivals. We need a second port of entry that is certified. 

Right now, if planes come from Japan, they have to clearly unload in Honolulu, take everything off the plane, reload, get back on 

the plane, and go to Kona. I think we need a second port of entry. 

We would like to work with you on that. 

We would like to expand opportunities of preclearance in Japan. 

Right now in Canada, you can get off any plane because of customs 

and immigration in Canada. Just imagine if you could do that from 

Japan or Korea. 

They are our allies. They are our trading partners. Why wouldn’t 

we want to do that? Why wouldn’t we want to give that opportunity to each other and use travel as an export? 

There are many ideas that we want to pursue with you, from our 

National Parks to improving our MCI market. We just hosted 

APEC. And as Lynn Wood from the State Department said, there 

is no substitute for face-to-face meetings around the country. 

20 

So we want to promote that market, and we just want to continue to work with you as a partner, because we do see it as a private-public partnership. Everyone can’t do it alone. Cities, states, 

municipalities, the Federal Government, all working together, and 

I think that is the key to our success. So America can be a leader 

in travel and tourism, not only in making money and creating jobs, 

but helping to create peace. 

Thank you very much, Mr. Chairman. 

[The prepared statement of Mr. McCartney follows:] 

PREPARED STATEMENT OF MIKE MCCARTNEY, PRESIDENT AND CHIEF EXECUTIVE

OFFICER, HAWAI‘I TOURISM AUTHORITY

On behalf of the Hawai‘i Tourism Authority (HTA), the State of Hawai‘i’s tourism 

agency, thank you for the opportunity to present to the Subcommittee on Tourism, 

Competitiveness, and Innovation of the United States Senate Committee on Commerce, Science and Transportation, on the benefits of international travel to our 

state and its impact on the overall U.S. economy. 

Hawai‘i’s strategic location connects the Asia Pacific region with the United 

States. Despite our size and geographic location, Hawai‘i receives 920 flights from 

53 cities around the world, making it the fourth largest international port of entry 

in the U.S. Hawai‘i also has the fifth highest occupancy in the U.S. with a 76 percent average statewide, and the second highest hotel average daily rate of $227. 

As a result, tourism is one of the lead economic drivers in the state of Hawai‘i 

which generates approximately $14.5 billion in visitor expenditures every year, approximately 20 percent of our state’s total GDP. The tourism industry is also one 

of the biggest employers in state and supports more than 173,000 jobs for residents. 

This means for every 1,000 visitors, 20 local jobs are supported. 

In 2013, Hawai‘i reached record numbers with year-over-year growth in visitor 

spending (+2 percent to $14.5 billion) and arrivals (+2.6 percent to 8.2 million), despite slower growth during the second half of the year. Through the cyclical pattern 

of the tourism economy, we are anticipating a downturn starting this year, with continual declines in spending and arrivals, especially from our core markets. 

Our largest international market, Japan, showed four percent growth in arrivals 

in 2013, with 1.5 million visitors. On an average daily basis, Japanese visitors spend 

more ($280) than U.S West ($155) and U.S. East ($200) visitors to Hawai‘i. 

Although Japan’s economy remains relatively unstable due to a recent hike in 

consumption tax (the first tax increase in 17 years with another increase in 2015), 

there are still opportunities to promote travel to Hawai‘i and the U.S. in Japan. 

Nearly 60 percent of Japanese visitors to Hawai‘i are repeat travelers, mainly from 

the major metropolitan areas. We continue to work with our marketing contractor 

in Japan to target regional areas of the country as well as promote first-time travel 

to all of the Hawaiian Islands. 

In order to balance the softening of our mature U.S. and Japan markets, the HTA 

is focusing on growing and expanding developing international markets, especially 

in ‘‘Other Asia,’’ which includes Korea, China and Taiwan. While these markets 

make up a relatively smaller market share in comparison to Japan, they continue 

to show significant growth and potential. 

Ease of access through the U.S. visa waiver program in Korea and Taiwan, and 

improvements to the visa process in China have led to a rise in outbound travel 

from these regions. With new direct service and nonstop flights connecting these 

markets to Hawai‘i, arrivals from Other Asia markets continue to increase yearover-year. In 2013, arrivals grew 18.4 percent to 343,327 visitors and we anticipate 

reaching 438,800 arrivals, a 27.8 percent increase in 2014. 

Recent travel trends from Korea to Hawai‘i demonstrate how the U.S. visa waiver 

program has helped to stimulate travel. Since being implemented in Korea in 2008, 

arrivals to Hawai‘i jumped 350 percent from 38,110 to 171,506 visitors. Total expenditures also increased substantially from $79.4 million in 2008 to $314.6 million 

in 2013. And we anticipate continual growth in 2014, targeting 190,000 visitors from 

Korea (+10.8 percent) and $350 million (+11.3 percent) in expenditures. 

Implementing the U.S. visa waiver program in Taiwan created opportunities for 

airlift to Hawai‘i. In June 2013, China Airlines launched its first nonstop flight between Taipei and Honolulu. Within one year of implementing the visa waiver program in November 2012, visitor arrivals have increased 208 percent. 

21 

These results show the impact of the U.S. visa waiver program in supporting travel and validate a need to extend it to other major markets. 

We also appreciate the improvements made to the visa process in China, where 

travel demand continues to grow. In 2013, 132,634 Chinese visitors (+13.5 percent) 

came to Hawai‘i and spent $329 million in total expenditures. As our highest daily 

spenders (average $397 per day), we anticipate total expenditures to increase 37.6 

percent in 2014, with a 21.5 percent increase in visitors, to 180,000. 

Oceania, which include Australia and New Zealand, continues to be one of the 

fastest growing markets for Hawai‘i. In 2013, visitor arrivals grew 29 percent to 

353,965 arrivals, while spending grew 31 percent to $840 million in annual expenditures. With additional access and supplemental marketing efforts by the HTA and 

its partners, we anticipate nearly 11 percent year-over-year growth in arrivals from 

this region in 2014. 

Increasing international arrivals throughout our state is a high priority for 

Hawai‘i. The following are initiatives that will help us to accomplish this goal and 

where we would like to request Federal support in: 

1. Enhancing access to Hawai‘i through: 

» Reestablishing Kona Airport (KOA) on Hawai‘i Island as a second international port of entry; 

» Expanding border pre-clearance authorization for major international market 

areas like Japan; 

» Allocating Federal funding for airport improvements for Hawai‘i’s airports; 

2. Expanding the Visa Waiver Program; 

3. Reauthorizing the Brand USA initiative; 

4. Creating Federal tax credits for destination development and upgrades; 

5. Maintaining investments in our National Parks and other cultural and natural 

attractions and resources; 

6. Supporting legislation that will enable tourism workforce and career development; 

7. Advocating Hawai‘i as a meetings, convention and incentive (MCI) destination; 

8. Sustaining funding and support for the National Oceanic and Atmospheric Administration (NOAA) and its programs in Hawai‘i; and 

9. Developing a public awareness campaign to educate Americans about the importance and benefits of tourism to our country. 

Our Honolulu International Airport (HNL) on the island of O‘ahu is currently the 

fourth busiest international airport in the Nation. In 2013, there were more than 

3.6 million international visitors that came to Hawaiʻi through HNL. The 

ability to open a second international port of entry would help to alleviate the high 

traffic at U.S. Customs at HNL during peak arrivals from international flights and 

cut down on additional costs and time for interisland transfers. 

Kona Airport, which was previously certified to receive nonstop flights from 

Japan, welcomed 138,539 Japanese visitors via HNL in 2013, making it the second 

most popular destination for this market. 

Granting a five-year exemption to reestablish KOA as a second international port 

of entry will allow us to re-open and develop to full potential, a Federal international inspection facility. This requires additional staffing of Federal and border 

control officials. The State of Hawai‘i Department of Transportation (DOT) is also 

looking at new technology, like Auto Passport Control (APC) kiosks to support customs and alleviate the strain on staffing. The APC technology that the DOT is considering can help to process up to 162 passengers per hour versus 41 passengers 

by a customs official. 

With Federal Government, the HTA will also work with Hawai‘i state DOT to facilitate collaborative support with the State, Hawai‘i County and our industry partners. Reestablishing Kona as a second international port of entry and granting border pre-clearance authorization in Japan will greatly alleviate strain and resources 

at HNL as well as grow international demand not only for Hawai‘i but for the U.S., 

overall. 

We are also working with the Ministry of Land, Infrastructure, Transport and 

Tourism (MLIT) in Japan to discuss the option of establishing pre-clearance authorization for international flights from Japan to the U.S. The HTA has been in discussions with the MLIT to start trial efforts in Narita International Airport in Tokyo, 

Japan’s largest international airport, which services 63 flights to Hawai‘i per week. 

In order to accomplish this, the U.S. Government would need to sign a treaty with 

the Japanese government. 

22 

While the HTA continues to work with the State of Hawai‘i Department of Transportation (DOT) to renovate and improve our airports statewide, additional Federal 

funding would help to upgrade our facilities in order to accommodate newer aircrafts, like the Airbus 380. These newer aircraft models offer larger passenger capacity and can fly longer distances nonstop, which will help to improve international 

access and promotions. 

Air access is Hawai‘i’s lifeline and supporting these airlift initiatives is essential 

to sustaining and growing one of the state’s largest industries. Therefore, we hope 

that you take into consideration, ways to support reestablishing Kona as a second 

port of entry, granting pre-clearance authorization and funding airport upgrades in 

Hawai‘i. 

As mentioned above, the Visa Waiver Program is a significant factor in stimulating interest in travel abroad and has resulted in exponential growth in visitor 

arrivals and expenditures for Hawai‘i from developing markets like Korea and Taiwan. By expanding the program, we will not only continue to strengthen the Nation’s tourism economy, but also enhance our global relations. 

We also hope to continue collaborating with the Brand USA team. Through working with them and our global marketing contractors, we have developed co-op campaigns and been able to better leverage funding and resources to increase outreach 

in our international markets. We recently partnered with Brand USA on their ‘‘Discover America Road Trip’’ campaign, in which they brought a Chinese influencer to 

help promote the unique experiences on O‘ahu and Maui. We worked together to 

enroll our partners for co-op support, resulting in extensive exposure for our state 

in China. 

We would also like to propose creating Federal tax credits for new hotels and renovations. Mexico and the Caribbean are among our biggest competitors, who continue to redevelop and upgrade their accommodations and offerings. They are currently developing 260 new projects, which translates to 26,000 rooms to accommodate an influx of travelers. In order to remain competitive, Hawai‘i needs to invest 

in increasing the number of accommodations available to our guests as well as focus 

on upgrading and improving the existing hotel inventory. A tax credit would support 

destination development, and also create jobs not only in construction but also support long-term job stability within the tourism industry once the finished products 

are complete. 

Our National Parks and other cultural and natural attractions and provide visitors with unique travel experiences. The World War II Valor of the Pacific, also 

known as Pearl Harbor and other attractions like the National Memorial Cemetery 

of the Pacific at Punchbowl and the Iolani Palace offer visitors a deeper look at the 

history and culture of our state. 

Growing our meetings, convention and incentive (MCI) market is also a priority 

for the HTA. During the 2011 Asia Pacific Economic Cooperation (APEC) Summit, 

Hawai‘i proved to be a world-class MCI destination. Our strategic location, connecting Asia Pacific with the U.S. makes us an ideal destination for global meetings 

and we continue to work on positioning Hawai‘i as the location of choice for international meetings and conventions. 

We also encourage you to continue to support the National Oceanic and Atmospheric Administration (NOAA), which is a major partner for the HTA. As an island 

state, the sustainability of marine life is a key element in our destination appeal. 

The Hawaiian Islands Humpback Whale National Marine Sanctuary is a joint effort 

between NOAA and the State of Hawai‘i, which helps to protect one of the world’s 

most important humpback whale habitats. Thousands of visitors from around the 

world come to Hawai‘i each winter to experience this natural wonder, which sets 

us apart from anywhere else in the world. We need to work together to continue 

to preserve this effort. 

NOAA also supports the Polynesian Voyaging Society and their efforts to perpetuate the ancient tradition of Hawaiian voyaging. The upcoming world tour of the 

Hokule‘a has not only allowed us to revive this tradition but share the Hawaiian 

culture with the world. Their 2009 voyage to Japan further fortified our relations 

through port greetings throughout the country. It is important to support the preservation of our natural resources as well as our cultural traditions that make 

Hawai‘i so unique. 

Thank you and mahalo for allowing us this opportunity to present an update on 

Hawai‘i’s tourism economy and our efforts in expanding our international travel 

markets. Travel is more than just a business. It is a valuable export that allows 

us to enhance our global relations and share our unique people, place and culture 

that we have not only in Hawai‘i but in the U.S. Like one of Hawai‘i’s community 

leaders, Aunty Pilahi Paki once said, ‘‘The world will turn to Hawai‘i as they search 

for world peace because Hawai‘i has the key . . . and that key is aloha.’’ 

23 

We must continue to work together with our industry partners, marketing contractors, government agencies and the Brand USA Team to promote travel to the 

U.S. with aloha. We are all in the same canoe and must sail together in the right 

direction to grow our Nation’s tourism economy. 

Senator SCHATZ. Thank you, Mr. McCartney. Thank you for making the trip. 

Thank you, Ron, for being here as well. 

Mr. Dean? 

STATEMENT OF BRAD DEAN, PRESIDENT 

AND CHIEF EXECUTIVE OFFICER, 

MYRTLE BEACH AREA CHAMBER OF COMMERCE 

Mr. DEAN. Chairman Schatz, Ranking Member Scott, Senator 

Blunt, thank you for the opportunity to join you today to discuss 

the state of America’s travel and tourism industry. 

In my capacity as president of the Myrtle Beach area Chamber 

of Commerce, I serve nearly 3,000 businesses that employ 46,000 

hardworking Americans in the Palmetto state. 

This hearing as well-timed as communities throughout our Nation are celebrating National Tourism Week, a week set aside to 

recognize the very positive impact of travel and tourism on our Nation and its people. 

As America recovers from this great recession and grapples with 

the challenge of creating jobs and fueling economic growth, I believe that travel and tourism must be a part of the national economic solution. 

Myrtle Beach, South Carolina, is a relatively small town with 

only 30,000 residents. And yet, despite that size, we welcome more 

than 15 million visitors each year. 

As you might expect, tourism is our number one industry. It sustains two-thirds of our local jobs and generates an economic impact 

of nearly $7 billion. 

It is not just Myrtle Beach that thrives on tourism in South 

Carolina. In my home state, tourism has an annual economic impact of nearly $18 billion and sustains one in 10 jobs throughout 

South Carolina. From the historical elegance of Charleston, to the 

natural beauty of Hilton Head, to the grandeur of the upstate, to 

the charm of the thoroughbred country, and all throughout, a state 

known for its history, its heritage, its hospitality, and very good 

barbecue, tourism is thriving and doing quite well today. 

Industry metrics have improved. Revenues are rising. The tax 

base is growing. Jobs have been created. New businesses have 

opened up. And these jobs, as Roger Dow mentioned, can’t be 

outsourced to other countries. 

But while there is much to celebrate during this year’s National 

Tourism Week, much remains to be accomplished. As you know, 

many of the jobs lost during this recession will not return. Today, 

too many Americans are either unemployed or underemployed. 

Proactive leadership from this Congress and the White House is 

essential to the future success of our travel and tourism industry. 

I come before you today to thank you and your peers for your 

leadership on key initiatives that have helped our industry rebound. Reductions in wait time for travel visas have expanded our 

visitor base. Creation of Brand USA as part of a national proVerDate Nov 24 2008 12:17 Feb 19, 2015 Jkt 075679 PO 00000 Frm 00027 Fmt 6633 Sfmt 6601 S:\GPO\DOCS\93275.TXT JACKIE
24 

motional strategy has been very impactful, generating returns on 

investment that rival our best marketing programs. 

Expanding the use of preclearance processing and improvements 

in security procedures have made travel to the U.S. much more enjoyable and more efficient. 

A U.S.-Canadian border agreement in 2012 has helped to grow 

travel to and from our neighbor to the north. And the leadership 

and attention given to tourism by key Federal agencies, like the 

Department of Commerce, have been very positive and very 

impactful. 

But we shouldn’t stop here. Much remains to be done. And with 

this in mind, I offer a few simple recommendations today that 

could have a very positive, long-lasting impact on our travel and 

tourism industry. 

Prior to the creation of Brand USA, our Nation was far from 

competitive in international travel. As you are well aware, we lost 

out on a huge surge of global travel in years past, in what Roger 

Dow and others have termed the lost decade of tourism. 

But under the leadership of Chris Thompson, Brand USA has 

flourished and delivers a very positive, measurable impact on international travel to the U.S. Brand USA allows me and my peers in 

Charleston and Hilton Head to collaboratively promote coastal 

South Carolina in numerous countries throughout the world. 

Since our partnership with Brand USA began, we have seen double-digit growth in international travel to the U.S. and to our community. And that growth, I might add, in our community has outpaced domestic growth by nearly 3 times. 

When it comes to Brand USA, I would say to the Senate just two 

simple words: Thank you. And if you would permit me to add two 

more: please reauthorize. 

In addition, if we intend to grow international travel to the U.S., 

we need to greet our visitors with a world-class transportation system. As you know better than I, our highways are crumbling, airports are crowded, and roadways are jammed. 

We need a transportation plan that begins to address the Nation’s backlog of construction and maintenance of our roads and 

bridges. As Senator Scott rightly mentioned, Myrtle Beach is the 

busiest vacation destination in America without interstate access. 

Each year, millions of visitors drive to the Myrtle Beach area on 

one four-lane State highway. Our first impression and last impression is traffic congestion. And as you might imagine, my greatest 

competitor is my local highway system. 

Whether it is completing Interstate 73 in South Carolina, modernizing our airports, solidifying the highway trust fund, or a variety of other important infrastructure investments, transportation 

infrastructure will create jobs and sustain our economy. 

Our Nation’s travel and tourism industry has emerged from dire 

economic circumstances, and today it is healthy and growing. The 

recent increases in international tourism are a big part of the success, and we can point to the bold leadership from Congress and 

key Federal agencies, advancements made in preclearance processes and travel visa processing, improved security measures and 

along with promotional success of Brand USA, to understand why 

all of this has occurred. 

25 

1Salvino, Dr. Robert F. 2012. ‘‘The Economic Impact of Tourism on the Grand Strand.’’ Coastal Carolina University. http://www.tourismworksforus.com/docs/TourismImpactStudyCCIl5- 

16-12lfinal.pdf 2South Carolina Parks Recreation and Tourism. May 2, 2014. 2013 Fiscal Analysis. 

3South Carolina Parks Recreation and Tourism. May 2, 2014. 2013 Fiscal Analysis. 

Nevertheless, much remains to be accomplished. Reauthorization 

of Brand USA, investing in infrastructure, and a sensible approach 

to government regulation, will help fuel economic growth and job 

creation. 

I thank you for the opportunity to join you today. On behalf of 

the 46,000 South Carolinians and the Myrtle Beach tourism industry, I thank you for your leadership. Like you, I believe that great 

days lie ahead for our Nation. And I believe that travel and tourism will be a part of that. 

[The prepared statement of Mr. Dean follows:] 

PREPARED STATEMENT OF BRAD DEAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER, 

MYRTLE BEACH AREA CHAMBER OF COMMERCE

Chairman Schatz, Ranking Member Scott and distinguished members of the Senate Committee on Commerce, Science, and Transportation, thank you very much for 

the opportunity to join you to discuss the state of America’s travel and tourism industry. I am Brad Dean, President of the Myrtle Beach Area Chamber of Commerce, 

in Myrtle Beach South Carolina. In that capacity, I represent nearly 3,000 businesses which employ more than 46,000 hard-working Americans. Our organization 

is a proud member of the U.S. Travel Association, the American Hotel and Lodging 

Association and the U.S. Chamber of Commerce. 

I appreciate your invitation to testify on the state of travel and tourism and future growth opportunities. This hearing of the subcommittee on tourism, competitiveness and innovation is well-timed, as communities throughout our nation, in 

every one of our 50 states, are celebrating National Tourism Week, a week dedicated to recognizing the significant and positive impact travel and tourism has on 

our Nation and its people. More importantly, as America recovers from the Great 

Recession and grapples with the challenge of creating jobs and fueling economic 

growth, I believe travel and tourism can be a key part of the solution. 

Background 

Myrtle Beach, South Carolina is a small town of approximately 30,000 permanent 

residents. Several small communities are tied economically to the City of Myrtle 

Beach but the entire population of our region is still very small by most standards. 

Despite our small permanent population, the Myrtle Beach area is a major tourism 

mecca, welcoming more than 15 million visitors each year. As you might expect, 

tourism is our number one industry, and it fuels other local industries like real estate, construction and retail. 

Visitors come to Myrtle Beach to enjoy the 60 miles of beautiful, pristine beaches, 

100-plus championship golf courses, and a wide array of amusements, attractions, 

dining, shopping and entertainment options. While the activities and amenities are 

a draw, the Myrtle Beach area has been fortunate to enjoy a high repeat visitation 

rate, due in large part to the extraordinary southern hospitality our visitors enjoy 

during each visit. The tourism industry in Myrtle Beach generates an annual economic impact of nearly $7 Billion and sustains more than 73,000 jobs.1 In fact, twothirds of all full-time jobs in our community are tied to tourism. 

But it’s not just Myrtle Beach that thrives on tourism. In my home state of South 

Carolina, tourism has an annual economic impact of $17.6 Billion.2 Tourism accounts for 10 percent of all jobs in South Carolina.3 And it’s worth noting that tourism jobs can’t be outsourced to other countries. Suffice to say that tourism is big 

business in my community and throughout our state, as it is in many states 

throughout America. Yet we must be mindful that the travel and tourism industry 

is made up of many small businesses that depend upon the flow of commerce created through travel and tourism. For every Marriott or Disney or Delta, there are 

hundreds of small, independently-owned businesses that fuel the travel and tourism 

industry and these small businesses create jobs that keep America working. 

26 

4Dow, Roger J. November 21, 2011. ‘‘The Lost Decade of Tourism.’’ Wall Street Journal. 

Tourism Leading the Recovery 

In my community, tourism has led the economic recovery in recent years. Facing 

a severe economic downturn in 2008 and 2009, we invested heavily in additional 

promotion and tourism-related infrastructure, and the results have been astounding. 

We have experienced three straight years of economic growth, propelling our tourism industry to near-record levels, and the outlook for 2014 is very encouraging. 

Bear in mind, in my community, when tourism grows, tax revenues for schools and 

local governments grow, too, so what’s good for tourism is good for everyone. 

Likewise, the tourism industry throughout South Carolina has rebounded from 

the recession. Last year, Revenue per Available Room, a key measurement in our 

industry, was up 6.7 percent. Tourism tax revenues are rising and many new jobs 

have been created. Both in my community of Myrtle Beach, and throughout South 

Carolina, our economy has improved substantially and tourism has been a key part 

of that economic growth. 

While there is much to celebrate during this 2014 National Tourism Week, we 

should not let the success of the recent past cloud our vision of the future, for much 

remains to be accomplished. As you know, many of the American jobs lost during 

the recession will not return and too many Americans remain unemployed or underemployed. For too many years, we were not competitive in international travel and 

tourism, causing us to fall further and further behind and largely missing out on 

a boom in global travel, resulting in what Roger Dow, CEO of the U.S. Travel Association, in The Wall Street Journal rightly termed the ‘‘Lost Decade of Tourism’’.4

Small businesses today face a growing level of regulatory burdens which can stifle 

growth, even with the best of intentions. And, sadly, our transportation infrastructure is failing. If we are to grow America’s economy, create jobs and successfully 

compete in global trade, we must seize the opportunities that lie before us, and 

growing travel and tourism must be a part of that. The businesses that I represent 

are prepared to do so, and I suspect that is true not just in Myrtle Beach, not just 

in South Carolina, but throughout this great nation. But we cannot do this without 

you. Proactive leadership from this Congress, and the White House, is essential to 

the future success of our travel and tourism industry. Mr. Chairman, I come before 

you today to thank you, and your peers, for your leadership in key initiatives that 

have helped our industry. The attention given travel and tourism by the U.S. Department of Commerce has been superbly managed and administered. Creation of 

Brand USA, as part of a national travel promotion strategy, was necessary and very 

impactful. Expanding the use of pre-clearance processes and travel visa waiver programs has positively impacted our industry. A U.S.-Canadian border agreement in 

2012 helped grow travel to and from our neighbor to the north. 

But let’s not stop here. Much remains to be done. With this in mind, I come before 

you today with three simple recommendations that could have a very positive, longlasting impact on travel and tourism and, as a result, on our national economy. 

Promotion of Travel and Tourism Worldwide 

Prior to the creation of Brand USA, our Nation was far from competitive in international travel. There was no ‘come visit America’ message. Advertising and promotion in foreign countries was largely limited to top-tier cities and worldwide 

brands. As a result, communities like Myrtle Beach, South Carolina had little or no 

opportunity to compete on the global scale. As it’s now baseball season, allow me 

to put this in terms that any baseball fan can appreciate: America’s international 

tourism strategy before Brand USA was much like trying to hit a major-league 

fastball using a broom handle. You can swing all you want, and every now and then 

you might get lucky, but long-term success is highly improbable, if not impossible. 

Under the leadership of Chris Thompson, Brand USA has flourished. In addition 

to promoting the beauty, grandeur and widespread appeal of America and all it has 

to offer, Brand USA has opened up promotional doors for communities like mine in 

countries throughout the world. They provide valuable research and generate addedvalue publicity that far exceeds anything we could create on our own. More importantly, they allow individual destinations and states to leverage our promotional resources in multiple foreign markets. Prior to Brand USA, my efforts to promote the 

Myrtle Beach brand were largely limited to Canada. Today, through partnerships 

with Brand USA, I am able to collaboratively promote our brand, along with my 

peers in Charleston and Hilton Head, in numerous countries both in Europe and 

the Far East. Because of Brand USA, our promotional investments generate a much 

higher return-on-investment and we can now leverage our brands in more markets. 

27 

5Myrtle Beach Area Chamber of Commerce. May 2, 2014. 2009–2013 Credit Card Expenditure 

Analysis. 6 Hackbarth, Sean. April 17, 2014. ‘‘Regulation Nation: Federal Bureaucracy is as Busy as 

Ever.’’ United States Chamber of Commerce. https://www.uschamber.com/blog/regulation-nation-federal-bureaucracy-busy-ever. 

Since our partnership with Brand USA began, we have seen double-digit growth 

in international travel to the Myrtle Beach area.5 In fact, the growth in international travel to my community has risen at nearly three times the rate of domestic travel. We also now have two airlines providing non-stop service from Toronto 

to Myrtle Beach. When it comes to Brand USA I have two words for Congress: 

Thank You. And, if you’ll permit me, I have two more words to offer: please reauthorize. This program, which does not cost U.S. taxpayers a dime, is helping to grow 

tourism and create jobs, not only in Myrtle Beach, but throughout South Carolina 

and the other forty-nine states. 

Invest In Our Infrastructure 

In addition, if we intend to market America as the premier place for world travelers to vacation, we need to make sure they are greeted with a world-class transportation system. You are no doubt aware of the delicate situation we face with our 

Nation’s infrastructure. Our highways are crumbling and many bridges are not safe. 

Our airports are crowded and our roadways are jammed. This problem was not created overnight and it won’t be solved overnight, either. But something must be done 

now. Our infrastructure system is largely inadequate for our needs today, and the 

situation is only going to get worse. And while we have tremendous prospects for 

growing travel and tourism, both domestically and internationally, if we cannot 

meet the demands of our infrastructure system today, we can safely assume we will 

not be able to seize the opportunity to grow travel and tourism in the future. 

Congress must find an adequate source of funding for the highway trust fund 

which is currently projected to run out in late August. Sadly, there is little to trust 

about this trust fund. Also, Congress and the Administration should enact a longterm reauthorization of MAP–21 which will expire on October 1st. While the President’s proposal last week was a step in the right direction, much more needs to be 

done. We need the next Federal highway, transit, and safety program authorization 

bill to be a solution that will work for the future and begin to address the Nation’s 

backlog of construction and maintenance of our roads and bridges. 

Congress should also finish what it began with the interstate system. Today, Myrtle Beach South Carolina is the busiest vacation destination in America without 

interstate access. More than 15 million visitors travel to our community, with most 

of them coming during the spring and summer months via automobile. Yet we have 

one four-lane state highway that serves as the main thoroughfare. As you might expect, the first impression, and last impression, our visitors gain is that of congestion 

and traffic jams. We have used local and state taxes to begin the construction of 

Interstate 73 and only look to Congress to reauthorize a highway bill and finish 

what it began so many years ago by completing 35 miles of highway and connecting 

the Myrtle Beach area to the U.S. interstate system. This will create twenty-nine 

thousand jobs, boost tourism, attract new industries and save lives in the event of 

a hurricane. 

Likewise, we should seek to modernize our airports and air travel systems. Airport delays at our Nation’s gateway airports are becoming far too common and will 

increasingly become a limiter of productivity and travel. 

Reform Regulatory Process 

Regulation of business and other industries is necessary and appropriate in many 

instances, but when regulations are issued without appropriate consideration of 

their impact and burdens, they become onerous. As a result, businesses, employees 

and consumers all suffer. 

While the pundits often criticize the gridlock in Congress, this apparently has no 

impact on Federal regulatory activity. According to the Competitive Enterprise Institute, the Federal Register finished 2013 at 79,311 pages, yet there appears to be 

no slowing down. This same report estimates that there are 3,305 regulations in the 

pipeline, 191 of which are ‘‘economically significant’’, meaning they carry an annual 

cost of at least $100 million.6

Just one example of regulatory changes being discussed that could have a tremendous impact on travel and tourism, have been precipitated by the Administration’s 

recent memo to the U.S. Department of Labor to update of the Fair Labor StandVerDate Nov 24 2008 12:17 Feb 19, 2015 Jkt 075679 PO 00000 Frm 00031 Fmt 6633 Sfmt 6621 S:\GPO\DOCS\93275.TXT JACKIE
28 

7Obama, President Barack. March 13, 2014. ‘‘Presidential Memorandum: Updating and Modernizing Overtime Regulations.’’ Memorandum to Secretary of Labor Thomas E. Perez. 8 Congressional Budget Office. February 14, 2014. ‘‘The Effects of a Minimum-Wage Increase 

on Employment and Family Income http://www.cbo.gov/publication/44995 

ards Act (FLSA),7 with the expressed goal of rewriting overtime regulations. The 

tourism industry is labor intensive and requires workers that are very flexible in 

the hours they work and the jobs they perform. New unnecessary or burdensome 

requirements that will only serve to raise the cost of labor without any foresight 

as to the overall economic impact of new rules and guidelines would weaken the 

very industry that is helping to lead our Nation out of the Great Recession. Similar 

to the recent Congressional Budget Office’s report on ‘‘The Effects of MinimumWage Increase on Employment and Family Income’’,8 changes to the overtime regulations could benefit some and cost others their jobs. 

In this era of increasing regulation, some measures exceed sensible reform and, 

occasionally, exceed Congressional intent, as well. Small businesses are caught in 

the cross-hairs and can easily become the victim of unintended consequences. We’ve 

seen this in Myrtle Beach and I suspect we are not alone. Congress, when devising 

new laws, and the administration when implementing them should apply the same, 

basic principle that well-managed businesses and households apply: think before 

you act, and weigh the costs as well as the intended benefits. 

Conclusion 

Our nation’s travel and tourism industry has not merely rebounded from the dire 

economic circumstances we faced just a few years ago. Today, this industry has 

emerged from the toughest of times and is healthy and growing. And it’s no coincidence that America’s national economy is experiencing similar growth. The recent 

increases in international tourism are a big part of this success, and we can point 

to the leadership from the U.S. Department of Commerce, advancements made in 

pre-clearance processes and border security, along with the promotional success of 

Brand USA, to understand why this has occurred. 

Nevertheless, much remains to be accomplished. Our nation faces difficult fiscal 

circumstances amidst an increasingly competitive worldwide marketplace. At the 

same time, too many Americans remain unemployed and some of the jobs lost during the Great Recession will not return. 

These are big problems. Yet I believe travel and tourism is part of the solution. 

We can, and I believe we will, reach the objective of 100 million international visitors annually. But doing so requires reauthorization of Brand USA, improvements 

to our transportation infrastructure, and a sensible approach to government regulation. 

I thank you for the opportunity to join you here today. And on behalf of the nearly 

3,000 businesses I serve and the more than 46,000 employees I represent, I thank 

you for your service to our Nation. I, and those in the industry in which I am a 

part of, stand ready, willing and able to work with you to help propel America forward. There is no doubt we face significant challenges, but thankfully, the problems 

we face are solvable. And the opportunity for success today is unprecedented. Like 

you, I still believe that America’s best days lay before us, and not behind us, and 

I thank you for your commitment in leading our Nation forward. 

Senator SCHATZ. Thank you very much, Mr. Dean. 

Before recognizing Senator Scott for questions, we would like to 

recognize Senator Blunt for an opening statement. 

STATEMENT OF HON. ROY BLUNT, 

U.S. SENATOR FROM MISSOURI 

Senator BLUNT. Thank you, Chairman. And, Chairman, thank 

you and Senator Scott for leading this committee. We couldn’t have 

two people who are more dedicated to the effort of travel and tourism, and understand what it means to our economy. Both of your 

states, as Senator Heller’s and mine, represent this industry as an 

important part of our overall economy. I am glad to have this hearing today. 

29 

All of our states have things to talk about. In my state, from 

Branson to St. Louis, Kansas City, Hannibal, St. Joseph, and other 

places, it makes a difference. 

Just last month, I was pleased to introduce, with our colleague 

that I have worked with on these issues before, Senator Klobuchar, 

the Travel Promotion Enhancement and Modernization Act of 2014. 

We have been joined already in this effort by two dozen Senate 

members, bipartisan in nature. A bipartisan companion measure 

has been introduced in the House by Congressman Bilirakis and 

Congressman Welch. 

This bill would reauthorize the Travel Promotion Act, signed into 

law in 2010 after 5 years of effort. 

Of course, we had a dramatic decline in foreign visitors between 

2000 and 2010. When you look at the economic opportunities before 

us, nothing is more attainable than more foreign visitors, if we just 

do the right thing. 

That is why I was so pleased to be able to work with Roger Dow 

and his team at U.S. Travel Association, as well as our colleagues 

in the House to pass this. I think in the House, when I was there, 

we actually passed the original authorization bill several times. 

And finally, the Senate caught up and we were able to have a bill 

on the President’s desk and got it signed into law. 

The centerpiece for the Travel Promotion Act was establishing 

the Corporation for Travel Promotion, known now as Brand USA. 

And, certainly, Brand USA has benefited from the leadership of 

Mr. Thompson. The efforts that have been made at Brand USA 

have been significant. 

Brand USA is a private-public partnership that markets American tourism abroad, and keeps international travelers informed 

about our security policies. Other countries have been doing this 

for a long time. We have only been doing it for a few years now, 

but I think with obvious results. Virtually every developed nation 

makes this kind of effort, and the United States is finally joining 

that competition. 

According to a study conducted by Oxford Economics, tourism arrivals grew faster than expected from the countries where Brand 

USA did its marketing, generating 1.1 million additional international visitors in 2013. 

Foreign visitors spend more. They stay longer. And they like us 

better when they leave, in virtually every single case. Just the 

sheer diplomatic gains from this, the ability to extend who we are 

by sharing who we are with people who visit, is by itself, I think, 

enough of a reason to reauthorize this program. But the economic 

impact, of course, is great as well. 

Brand USA, Mr. Chairman, members of Committee, and the people here at this hearing, is not funded by any Federal tax dollars. 

Half of its budget comes from the private sector through cash and 

in-kind contributions. The rest of the budget is funded by a nominal fee assessed on international travelers in the Visa Waiver Program. 

So this is money that would not be available if people weren’t 

traveling. It doesn’t involve U.S. taxpayer money. But it certainly 

creates lots of revenue whenever we are part of a successful travel 

and tourism industry. 

30 

Brand USA can’t receive these funds without first raising private sector contributions. It can only collect up to $100 million in fees 

paid by foreign travelers. Any fees collected in excess of that cap 

go to the Treasury. And more than $50 million has already gone 

to the Treasury since Fiscal Year 2012. 

So every traveler that is encouraged to come here actually is likely to help us exceed the amount of money that we collect to promote travel abroad. 

Anytime Congress passes legislation, we need to keep the goal of 

that legislation in mind. And, clearly, those goals have already 

been stated here in both economic and diplomatic terms. 

So I am glad we have this panel here today to talk about travel, 

generally, and foreign travel, specifically. 

And I look forward to an opportunity when we see this legislation on the floor and extend the current program that is clearly 

proving it can accomplish exactly what we hoped it would accomplish. 

Senator SCHATZ. Thank you very much, Senator Blunt. 

Senator Scott? 

Senator SCOTT. Thank you, Mr. Chairman. 

This is a two-part question for Mr. Dean and Mr. Thompson. I 

saw the announcement by WestJet of an increase of flights from 

Toronto to Myrtle Beach this summer. These flights can come directly to a smaller airport like Myrtle Beach because of the 

preclearance program that allows travelers to go through Immigration and Customs processing before boarding the plane, rather than 

having to connect through a larger international airport. 

I was hoping to hear from Mr. Dean about how the Canadian 

market is contributing visitors to South Carolina. And then perhaps Mr. Thompson could talk a little bit about the success of 

Brand USA and what it is doing to stimulate the Canadian market 

specifically. 

Mr. DEAN. Thank you, Senator. As you point out, the Myrtle 

Beach area has grown its penetration in Canada recently. For 

many years, we welcomed Canadian visitors, but it was typically 

for about an 8-week season. And it was really only those Canadians 

living in Ontario who were willing to make an 18-hour drive. 

One of our challenges was to broaden our reach, and not simply 

raise our name I.D. in Canada, but to attract more Canadian visitors to the area. 

Through the partnership with Brand USA, we have been able to 

expand our destination awareness not only in Ontario, but 

throughout other areas. Part of the benefit of that has been attracting direct air service from Toronto to Myrtle Beach. 

To use a sports analogy, this is a game changer. This allows us 

to bring Canadian visitors not only for 8 weeks out of the year but 

for now 8 months out of the year. And it reaches a whole new segment of travelers who wouldn’t have come to the area before. 

And what we have seen even in the past 12 months is some of 

those Canadians are now buying real estate in the Myrtle Beach 

area and becoming investors. So this is truly helped to expand our 

presence there. 

Part of that are the promotional efforts and support from Brand 

USA. But, Senator, part of that as well is the preclearance that has 

31 

been established, and helps make the travel more efficient and 

more enjoyable when coming to this area. 

I daresay, as a small destination that is not a port of entry, without that, we would not have much success in attracting air service 

to the Myrtle Beach area. But because of preclearance and Brand 

USA, we have been able to do that. 

Senator SCOTT. Thank you. That is, certainly, important for a 

community with 30,000 residents and 15 million tourists. The importance of the program and its success with preclearance really 

has been illuminated. 

Thank you, Mr. Dean. 

Mr. Thompson? 

Mr. THOMPSON. Senator, I appreciate the opportunity to talk 

about the Canadian market. It is clearly our number one market. 

We share a border, which obviously explains a lot of that. 

It is also one of our established markets. So if we look at our goal 

of 100 million visitors by 2021, we currently are at 70 million. In 

order to get to that goal, we are not going to get huge numbers out 

of Canada because we already enjoy a huge market share, not only 

in South Carolina, Myrtle Beach, but many states along the Eastern seaboard, in particular. And the Western seaboard, from the 

Vancouver area, already enjoys great Canadian visitation. 

But in order get to the 100 million visitors annual number, we 

have to maintain in our existing markets. So we are deeply deployed in Canada. It is not really talking about the dream phase 

of visiting. These are visitors who have been here many times. So 

in a lot of cases, it is asking them to continue to come back and 

go to the destinations that they have been to before, but otherwise, 

explore beyond the gateways and maybe to other cities and other 

states that they haven’t been to before. 

And this example is what Brad was talking about as far as our 

partnership. If you look at our ability to be able to find ways to add 

value to what is already there, this is a partnership with Brand 

USA working with our supplier partner in this case, which is Myrtle Beach, our buyer partner in this case, which is WestJet, to actually leverage the opportunity to promote that destination and to 

bring greater focus to it. 

And I think what Brad would tell you, what he shared with me, 

is the ability to bring in the additional flights and the reach has 

actually expanded their season from what was 5 months to 9 

months. And he is telling me that with a little more promotion, 

that we are liable to turn it into a year-round market. 

So those little success stories are going to allow us to be as successful in the markets that have been supporting us for so long, but 

continue to help communities like Myrtle Beach as they are trying 

to expand their international footprint. 

Senator SCOTT. Thank you, sir. 

I have just a couple minutes left, so I want to get to two more 

questions. 

There is no doubt, Mr. Thompson, that the Brand USA activities 

and program have been very successful. And as we think about 

going from 70 million visitors to 100 million visitors, and looking 

specifically at the in-kind contribution, you said earlier that the 

32 

program has been supported by 3 to 1 by Members of Congress and 

3 to 1 here in the Senate. 

One of the concerns focused on are the in-kind contributions, and 

the GAO reports suggest perhaps that the way the in-kind contributions are being counted needs to be done better. 

Do you have any comments about what the organization has 

been doing to address those concerns? 

Mr. THOMPSON. Yes, sir. In particular, those concerns were tied 

to—first of all, our charge is to not only attract cash contributions, 

but in-kind contributions. Those in-kind contributions that we get, 

where we can—for instance, for media that is donated to us and 

there is an invoice tied to that media, and it would be what we 

would have to pay in order to replicate that media, that is something that is an easy in-kind match dollar for dollar. 

When it is, for instance, logo advertising in ads, we have a thirdparty outside source that actually helps us evaluate what that is 

worth to us. And then that is shared with Commerce and Treasury, 

and also vetted by Commerce and Treasury, to be able to determine 

that value. 

That process is what was called into question, and agency that 

we hired initially to bring on board was not done in our normal 

procurement procedures. But since then, we have RFPed that process. And we have a regular, ongoing working relationship with the 

Department of Commerce where we literally addresses those issues 

on a daily basis for sure, and at minimum twice a year. 

Senator SCOTT. Thank you. 

Mr. Dow, as you testified, last year we were able to attract about 

70 million visitors, international visitors, a 4.7 percent growth rate. 

For us to achieve a goal of 100 million visitors, we are going to 

have to have a slightly higher growth rate that is sustained over 

the next 6 or 7 years. 

Do you think this growth rate is achievable? And what other 

changes would we need to consider for us to achieve that goal? 

Mr. DOW. It is absolutely achievable. 

Number one, reauthorize Brand USA because it is promoting the 

United States as a travel destination to many international markets. 

Two, add more countries to the Visa Waiver Program. There are 

9 countries that would make a lot of sense, such as Brazil, Poland, 

and Israel. Visa Waiver Program countries increase travel and improve security. 

Three, making sure that those low visa wait times for interviews 

stay there. That is what the JOLT Act does in the comprehensive 

immigration bill that moved forward in the Senate. We want to 

make sure either the JOLT Act or the immigration bill gets passed, 

or you attach JOLT to something else, because you don’t want to 

lose the gains that you have achieved in visa reform. 

And lastly, we have to find a way to make it easier for international travelers to come and return to the U.S. easily. A lot of 

them are shifting to—you mentioned Canada. The Chinese go to 

Canada because they can get a 10-year visa. We only give them a 

1-year visa. They can go to and from Canada very easily. 

33 

We don’t want to lose those travelers because a lot of them are 

not only leisure travelers, they come here for business, and to buy 

American products. 

Senator SCOTT. Thank you. 

Final question, Mr. Dean, I was interested in the points you 

brought up about the Federal regulatory environment and its impact on local tourism, whether it is a 30-hour workweek, or other 

issues. I would love just to hear you expound a little bit on the impact of the regulatory environment and what we can do to perhaps 

stimulate more tourism if we were able to have a different secret 

sauce. 

Mr. DEAN. Sure. Thank you, Mr. Scott. 

You know, you referenced some numbers earlier, $2 trillion of 

economic output, and, of course, the tens of millions of dollars that 

come with that. There is no doubt tourism in America today is big 

business. 

But we shouldn’t lose sight of the fact that the big business of 

tourism is made up of small businesses. 

I run the largest chamber and CBB in the Carolinas, yet four out 

of five businesses that I represent have 20 employees or fewer. So 

tourism is big business but made up of small businesses. 

And oftentimes it seems that the regulation that comes out of 

Washington, while well-intentioned, and in many cases very necessary, can also stifle growth in small business, if it is not appropriately considered and implemented. 

I think of a recent situation in the Myrtle Beach area where it 

was nothing other than a bizarre overreach by one Federal agency 

that held 3,000 jobs at bay. I realize here in Washington, that is 

probably a rounding error. 

But for me, that wasn’t a number. These were friends and neighbors and coworkers. 

And with all due respect, I should point out that regulatory decision was not made by Congress, and it took 4 1/2 years and 42 

trips to the Nation’s capital to rectify that. Now, the Congress did 

rectify that, but the effort it took just to solve an issue that never 

really existed—there was no problem to begin with—it was just 

very challenging for our business community. 

You know, if I could wave a magic wand and change one thing 

in Washington today, it would be that Congress when passing laws 

and the administration when implementing them would to what 

well-managed businesses and households do: Think before you act, 

and weigh the consequences as well as the intended benefits. And 

that, with a heavy dose of common sense, I think would lead to regulation that would be fruitful for our Nation. 

I noticed the Federal Register last year, I think, ended up at over 

79,000 pages, but what is alarming to me is that there are 3,300 

regulations in the pipeline. Many of those are economically significant. 

Some of them are very important and necessary. But if we are 

not careful, we could stifle the very growth that all of us are working together to try to achieve. 

Senator SCOTT. Thank you, Mr. Dean. 

Mr. Chairman, thank you for the lavish amount of time that you 

have provided me during this hearing. I haven’t had this experiVerDate Nov 24 2008 12:17 Feb 19, 2015 Jkt 075679 PO 00000 Frm 00037 Fmt 6633 Sfmt 6601 S:\GPO\DOCS\93275.TXT JACKIE
34 

ence previously to talk more than 5 minutes. I appreciate being a 

ranking member under your leadership. 

Senator SCHATZ. Well, thank Senator Heller for waiting. 

Senator Heller? 

STATEMENT OF HON. DEAN HELLER, 

U.S. SENATOR FROM NEVADA 

Senator HELLER. Is this a community where we all get 10 minutes? 

Senator SCOTT. No, sir. 

[Laughter.] 

Senator SCHATZ. So ordered. 

Senator HELLER. Thank you very much for holding this hearing, 

to both the Chairman and Ranking Member. 

I also want to thank our witnesses for taking time to be here 

today. 

I don’t think you can have a discussion on tourism, these issues, 

without someone talking about Nevada and the growth we are seeing, especially in Las Vegas. And that is what I would like to do 

today, I would like to give some perspective of what is going on in 

Las Vegas. 

I don’t have to defend the importance of tourism for the state of 

Nevada and specifically Las Vegas. We can talk about Reno, we 

can talk about Lake Tahoe, but obviously the hook would be in 

southern Nevada. 

I would say the brand is probably as strong as ever in southern 

Nevada, the Las Vegas area. I think that resonates around the 

world. 

We have seen some pretty good statistics, there is some growth. 

And it is good to see after this recession, because as you can imagine, Nevada was hit pretty hard the last 5 years. To see the kind 

of growth we are now seeing in visitations, not only domestically 

but internationally, it plays out quite well. 

Just this past March, we had a record of nearly 3.7 million visitors into Las Vegas. The first quarter of this year, 10.2 million visitors. For the first time, we believe, for 2014, we will break the 40 

million visitor mark. 

And I think the business community is so confident in the future 

of the growth of Las Vegas that we now have $9 billion worth of 

projects under construction or near construction over the next several years. 

So it all bodes very well. I don’t think I have to make the argument that, as important as tourism is for South Carolina and Hawaii, that Las Vegas has been and will continue to be the number 

one meeting and convention destination in North America. 

But I do also want to move over to international visitation. We 

know that international visitors stay longer and spend more. And 

currently 20 percent, or nearly 8 million, of our visitors are international. And our goal is to grow that international number to 30 

percent in Las Vegas over the next decade. And that is probably 

where most of you come in. 

The top three international markets for Las Vegas in 2012, it 

probably doesn’t surprise you, are Canada, Mexico, and the U.K. 

35 

But they are followed by Australia, China, Hong Kong, France, 

Germany, South Korea, Brazil, and Japan. 

We want to expand this particular market. Places like Brazil 

show tremendous promise for cities like Las Vegas. 

I know there are hurdles. I want to talk to you about what some 

of these hurdles are. Mr. Thompson, maybe you specifically. I wish 

there were some representatives here from the government, but 

maybe you can enlighten us on what some of these hurdles are in 

order to bring some of these international visitors into the country. 

Mr. THOMPSON. Thank you, Senator. I appreciate the opportunity 

to comment on that. 

Certainly, our focus is on the marketing side of the equation, so 

we want to market, first of all, the opportunity and the vast 

amount of experiences that are provided by our destinations and 

our brands. And if we do our job well enough, then that is going 

to obviously continue to fuel the demand that you are talking about 

that Las Vegas has experienced very well. 

I think a lot of what has been highlighted here through my colleagues are the issues at hand, both at the national level and the 

local level. 

I think as far as Visa Waiver, the opportunity to be able to bring 

additional countries into Visa Waiver, our ability to improve and 

expand upon the welcoming aspect of the travel and tourism industry as it relates to the first impression once they get here, particularly in some of the areas that are the major chokepoints, are probably two of the main things that could contribute significantly to 

being able to expand not only visitation to the entire country, but 

also to Nevada. 

And I know my colleague, Roger Dow, would be able to speak to 

even more on that. 

Senator HELLER. If you could, please. 

Mr. DOW. Yes, Senator. Again, thanks for all your support with 

the JOLT Act and all those things that you are behind. 

The hurdles, I will take Las Vegas and be very specific. For example, McCarran International Airport is expanding greatly internationally, but PFC funds for McCarran are tapped out for the next 

40 years, because the passenger facility charge is already committed to pay for bonds and future projects. If we increase the fee 

to $8.50, it gives the airport a huge opportunity to increase investment and modernize. That investment can only be made for capacity, security, airport noise, safety, and competition. It can’t be used 

for a McDonald’s or revenue-generating areas. So funding for airport infrastructure is a big hurdle. 

Another hurdle is not having enough Customs and Border Protection officers at our gateway airports to process international 

travelers. We applaud the first 2,000 officers that were just appropriated, but we need more. 

When you look at the number of visitors we are getting, and the 

goal to attract 100 million, the current CBP staffing during peak 

times can sometimes feel like having one cashier at Costco during 

the holidays. It just doesn’t work. 

When these people stand in line for hours, it is a shame. They 

are ticked off before they get to Las Vegas. 

36 

So there are two big hurdles, having enough CBP officers to get 

them through entry and having the opportunity to build adequate 

infrastructure at our airports. 

Senator HELLER. I agree. I have stood in those lines, by the way. 

And it can be very frustrating. And I wondered what the return 

rate is, having stood in those lines for so long. 

Going to Brand USA, I think Brand USA has been very instrumental to cities like Las Vegas. For that reason, those promotion 

efforts to premier travel destinations, I think, have done a great 

job. And for that reason I have cosponsored the legislation and the 

reauthorization, as you mentioned, Mr. Dow. 

But I guess my question is this, I think there needs to be more 

transparency and accountability. I think CBO came out with a report regarding performance indicators, performance measures, and 

addressed concerns regarding the competitive procurement process. 

Can you speak on that a little bit, what we have been doing to 

try to improve that, Mr. Thompson? 

Mr. THOMPSON. Absolutely. Initially, as far as the performance 

indicators that are in place, the main part of our emphasis in the 

first couple years was the launch of our brand campaign. As we deployed that in three markets around the world, Canada, the U.K., 

and Japan, our measures on the frontend of it was what was our 

message, how is that influencing the intent to travel. So we feel 

like at our level, three times removed from our partners at the city 

and State levels, and in cooperation with our brands, if we can load 

the funnel, we can keep the USA top of mind, that is our ability 

to then have an impact on that. 

What we are now putting into place are not just those broad 

measures, but how do we deploy against specific marketing channels. And probably the most obvious example of accountability has 

been the most recent study, which looked at the entirety of what 

we are doing, not just as Brand USA, but in partnership with our 

suppliers and our buyers around the world, and that overall ROI 

that was incremental visitors that Senator Blunt talked about, and 

that I talked about my presentation. 

As far as accountability, the GAO really only cited one example 

of where we stepped outside of our procedures, and it was in the 

very early stages of the existence of the organization. It was in that 

ability for us to be able to bring forward an outside third party that 

could help us evaluate our in-kind contributions. And there are actually very few companies that do that. So in cooperation with the 

Department of Commerce and with Treasury, we actually identified 

a company that could do that. It wasn’t a competitive process, but 

it was the best company at the time that could to that. 

But since then, as I mentioned just a while ago, we are entering 

into an RFP process as we speak to actually verify that that company is the correct one or to look at others that are going to be able 

to help us. 

Senator HELLER. Thank you very much. My time has run out. 

Thank you, Mr. Chairman. 

Senator SCHATZ. Thank you, Senator Heller. And thank you for 

raising the question of bringing some of our government agencies 

to the table in subsequent hearings. And, certainly, Ranking MemVerDate Nov 24 2008 12:17 Feb 19, 2015 Jkt 075679 PO 00000 Frm 00040 Fmt 6633 Sfmt 6601 S:\GPO\DOCS\93275.TXT JACKIE
37 

ber Scott and I will be taking a hard look at that, so we can get 

some additional information. 

Thank you to all of the testifiers. I will have some additional 

questions for the record, as well. 

I would like to start with Mr. McCartney. 

You know that Hawaii has been doing travel promotions since 

the 1900s. I would like to ask you if you have any lessons learned 

for the Committee or for Brand USA or U.S. Travel to offer to us. 

Mr. MCCARTNEY. It is not just marketing. It is putting everything together. It is an experience. It is the people, place, and culture. 

You can market all you want, but if you don’t have a great destination, people don’t have a good time and enjoy themselves. 

When you look at some of the issues of standing in line or not 

getting to their vacation destination as quickly as possible, those 

all have cumulative negative impacts on the vacation experience. 

So I think one of the lessons we have learned over the years is 

that you have to provide a great experience. You can have all the 

marketing you want in the world, but if you don’t provide a great 

experience, it won’t last. 

Number two, I think what we have learned as competitors: We 

have to work together. We all live on an island. We all live in the 

U.S. We all live in the world. We are all going to have to work together. 

And there are enough visitors to go around, if we all work together and make that happen. We can learn a lot from each other. 

So what we have done in Hawaii, many times, competitors work together. And we sit down and we talk about what is good for Hawaii, not so much their business, but for Hawaii. 

And we know that if Hawaii grows, their business will grow. And 

I think we see partnership lining up very closely with Brand USA. 

Really quickly, Mr. Chair, we are working on a special program 

with Brand USA, where we have a marketing co-op program where 

we have a 3 to 1 match. Now we have a 4 to 1 match because we 

are working closely with them on Japan marketing programs. So, 

for example, Japan travel bureau, instead of us getting a $300,000 

program, thanks to them, we have a $400,000 program. 

It helps America. It helps us. It helps improve exports. 

So we are looking to working with each other on how to leverage 

our resources. We are probably going to spend $1 million on that 

type of programming as we go forward into the future. 

Senator SCHATZ. Thank you. 

One more question for you, Mr. McCartney, about the Asia-Pacific region. Can you talk about the potential generally, but I am 

interested for the purposes of the record for you to kind of take us 

through the major targets that you see from an HTA standpoint, 

but also from Brand USA and U.S. Travel. 

Mr. MCCARTNEY. There is a PowerPoint in my presentation, and 

it actually gives circles of the major markets. And if you were to 

look at Hawaii’s visitor portfolio, we are like a mutual fund, and 

we want to diversify our investments. 

We are diversifying our investments by pivoting to Asia. And by 

pivoting to Asia, we are going to our core market in Japan, where 

we have almost 20 flights a day, and adding direct flights from varVerDate Nov 24 2008 12:17 Feb 19, 2015 Jkt 075679 PO 00000 Frm 00041 Fmt 6633 Sfmt 6601 S:\GPO\DOCS\93275.TXT JACKIE
38 

ious destinations—Fukuoka, Nagoya, Osaka, Haneda, Sapporo. 

Those are all direct flights. 

We are looking at creating direct access. We are creating charter 

flights where farmers finish their farm season and catch a direct 

flight from their city to Hawaii. Direct access is so critical and important. 

Korea, because it is a Visa Waiver country, and we see the 

growth. We have four flights per day now, Hawaiian Airlines 

flights, two Korean Airlines flights, and an Asiana flight. Incheon 

International Airport is one of the best hubs in the world. I invite 

all of you to go there. 

They connect to over 20 cities in China. They connect all over 

Europe. You can catch flights from India there. 

We are expanding to China. I just came back from China last 

week on the first Hawaiian Airlines flight to Beijing. So we are 

having Air China and Hawaiian Airlines go to Beijing, and we have 

China Eastern with direct flights from Shanghai. So we have nine 

flights per week. 

We are also working very aggressively in Oceania. That would be 

Australia. So we are not only going to Sydney but Brisbane and 

Melbourne. 

They are doing well economically because they are selling minerals to China. They have disposable income. They love to come to 

Hawaii. So those markets are growing. 

We are expecting almost half a million visitors from Oceania. We 

also have markets growing in Australia. 

We are working hard to expand Taiwan. Taiwan is a new Visa 

Waiver country. We had two carriers, but we are back to one. We 

think that is going to continue to grow. We see growth in Hong 

Kong. 

So Asia has a lot of potential for America. So we talk about 

preclearance. That should be a no-brainer for us. Just as Canada 

is one of our best partners, our greatest ally, so is Japan. Why 

shouldn’t we create a relationship with them where we can do business with each other? They can fly directly. I can see JAL flying 

directly into Myrtle Beach, getting off the plane and having a wonderful experience. It benefits us all. 

I think Hawaii will get our fair share. But I think we need to 

seriously look at that. And that is going to take the work of a lot 

of you. It is going to take work of Senators, because it takes a treaty to make that happen. 

The last big treaty that took place was between Shannon, Ireland, and the United States, and I wonder what Senator helped 

with that. 

So you are in a position where you can make a great difference, 

and we are in a position where we can help you. All our cities, all 

our States, would benefit. If we work together, get a few countries 

in on preclearance, it could make a big difference. 

Senator SCHATZ. Thank you very much. 

Mr. Dow, I know that U.S. Travel published a report, which conveyed to me the urgency on improving the entry process. And you 

provided some of the key findings in your testimony. I am wondering whether you wouldn’t mind further explaining, especially 

the polling data that I found alarming, that almost 4 out of 10 visiVerDate Nov 24 2008 12:17 Feb 19, 2015 Jkt 075679 PO 00000 Frm 00042 Fmt 6633 Sfmt 6601 S:\GPO\DOCS\93275.TXT JACKIE
39 

tors would be less likely to come back to the United States as a 

result of the delays. I am wondering if you could convey to us some 

of your findings. 

Mr. DOW. Yes, sir. As we spoke earlier, this is a major challenge 

to overcome, when you have 43 percent of overseas travelers saying 

they would recommend against coming to the U.S. The worst news 

is that those visitors are going to tell eight people about their entry 

experience. 

So you have these people that become tourism terrorists, that 

begin telling their friends don’t go there because of major delays at 

airports. 

One in seven people are missing connections. So they get to their 

destinations late or not at all. They think they are going on a 

cruise. Guess what? They can’t make their connection, so they miss 

their cruise, or they miss the flight to Hawaii, or their flight home. 

Improving our entry process is very, very important. One of the 

things we have to get right, along with the right number of officers, 

is metrics. I applaud many things that CBP is doing. They are 

doing a great job putting together schedules and where officers 

should be deployed. 

But we also need metrics. We need to know, is it working? What 

are the numbers? This is customer satisfaction. 

When you run a business, and you have been a businessman 

yourself, you want to know: Are my customers happy? Are they 

telling their friends they ought to come here, versus telling their 

friends they shouldn’t come here? 

Senator SCHATZ. Thank you very much. 

Senator Blunt? 

Senator BLUNT. Well, thank you again for having this hearing. 

I know a couple questions Senator Heller asked were questions I 

would ask. I may have a question or two for the record. 

Do we have any indication, I know I had some numbers in my 

testimony, Mr. Thompson, on increases from countries that you 

were advertising in, that Brand USA was active in. Is that trend 

continuing? Do we have any later numbers than 1.1 million additional visitors we believe we got from countries where you have 

made your effort? 

Mr. THOMPSON. No, sir. Thank you for the question. We are actually working right now on being able to translate that down from 

the overall 1.1 million incremental visitor number. And a lot of 

that, unfortunately, or fortunately, is tied to the Department of 

Commerce numbers as it relates to our ability to be able to account 

for that. 

We do know that, in the markets we have been very active in, 

on the indicators that we have in place, which is our ability to influence intent to travel, which is keeping the USA top of mind in 

a very competitive marketplace with lots of promotion and advertising going on from an increasing number of countries around the 

world. What we are looking for now is to be able to translate that 

intent into actual visitation. 

Our first attempt to be able to do that was the study by Oxford 

Economics. They looked at it in a macro way. And now we are 

working with Commerce to figure out how to take the macro numbers and put it down to individual countries. 

40 

Senator BLUNT. And in terms of the private sector matching 

funds, how do you look at that today after the several years of experience we now have had? And what kind of thing do you think 

really should qualify? And what kind of thing would you think is 

less of a matching component to what you are doing? 

Do you have some standards that have changed over the last 

couple years? Would you talk a little bit about that? 

Mr. THOMPSON. Yes, sir. That is a relationship that we have in 

partnership with the Department of Commerce. Commerce is the 

lead agency as it relates to our relationship with Congress and our 

relationship with the Federal Government. And we have been 

working on those standards for matching, particularly as it goes to 

in-kind, from day one. 

We talk about those on a regular basis. We refine those at least 

a minimum of twice a year. 

I would say that what we have in place right now is pretty good. 

It is actually very strong. We have refined the things that have 

proved to be very valuable both to us and in the eyes of Commerce 

and Treasury. So that has been an ongoing relationship. 

And what we are actually finding is the cash contributions, that 

is where people see value in what we are doing in marketing the 

country around the world, have increased significantly. In our first 

year, we brought $26 million of cash contributions from industry to 

the table. Last year it was $32 million. We actually expect the current Fiscal Year to actually exceed the number from last year. 

So we see a growing confidence by our partners, the supplier 

partners around the country, in what we are doing and the value 

proposition we are creating. And we see great strength in the relationship we have with the Department of Commerce to make sure 

that, the resources that we are given by the Federal Government, 

that we spend those in a very efficient and effective manner. 

Senator BLUNT. And what new countries are you looking at that 

you would want to be making efforts in beyond where you are now? 

Or maybe you just want to concentrate on the decisions you already made? 

Mr. THOMPSON. Out of the gate, we were in Canada, U.K., Japan, 

because those were some of our established market that we wanted 

to maintain our market share. But now, we are actively involved 

in Japan, South Korea, China, Taiwan, Hong Kong, India, Australia, New Zealand, Brazil, and Mexico. So we have expanded our 

footprint considerably over the last year. 

We, actually, through our representation or through the activity 

that we have in market, we are actively involved in 30 major markets around the world that represent 92 percent of the inbound 

travel that comes to the United States. So we feel that is a really 

good footprint now that we got to where we were originally planning to get to. 

But now the three keywords that we are operating on is how do 

we continue to collaborate, integrate, and optimize with what we 

are doing. As you can imagine, when I was at the state of Florida, 

90 percent of the visitation came from around the country. So when 

you were deploying resources domestically, it is pretty uniform as 

far as mediums and opportunities and whatnot. But you can imagine, as we are trying to deploy resources around the world, we not 

41 

only have different cultures but different mediums within countries. 

So now, what we are trying to do is figure out how to optimize 

our resources against all of those countries and different opportunities that they provide. 

Senator BLUNT. Thank you. 

Thank you, Mr. Chairman. 

Senator SCHATZ. Thank you, Senator Blunt. Thank you for your 

leadership on this issue for many, many years, on a bipartisan 

basis. 

I think you have seen from this subcommittee hearing that there 

is strong bipartisan support for this issue, because it knows no ideology, because in a lot of ways, what we have to do is difficult, but 

it is not complicated. It may be a real challenge for us to be as 

helpful as we really need to be and want to be in the Congress, but 

there is not very much disagreement among members in either 

chamber or either party. 

The other thing that strikes me is how much private sector leadership is required, and there continues to be. So I want to thank 

the testifiers, thank my ranking member, thank Senator Blunt for 

his leadership. 

And we are looking forward to working with you on ongoing 

basis. 

[Whereupon, at 11:12 a.m., the hearing was adjourned.] 

(43) 

A P P E N D I X 

AMERICAN HOTEL & LODGING ASSOCIATION

Washington, DC, April 7, 2014 

Hon. AMY KLOBUCHAR, 

United States Senate, 

Washington, DC. 

Dear Senator Klobuchar: 

The American Hotel & Lodging Association, the sole national association representing all segments of the 1.8 million-employee U.S. lodging industry, commends 

you for introducing legislation extending the Travel Promotion Act of 2009 until FY 

2020 and reauthorizing a critical tourism promotion entity, BrandUSA. 

BrandAUSA (formerly the Corporation for Travel Promotion) was established by 

the Travel Promotion Act to help attract millions of new international visitors, explain U.S. security policies, and promote the U.S. as a premier travel destination. 

It is paid for entirely by international travelers and voluntary industry donations; 

no taxpayer money is involved. 

Nearly every other country in the world has an official program to welcome international tourists to their nation, and the lack of a similar promotional program in 

the U.S. is preventing us from maximizing the number of visitors to our country. 

Through industry efforts like BrandUSA, travel is now increasingly recognized as 

a leading growth industry and a source of valuable jobs that cannot be outsourced. 

Between 2011–2012, international travel to the United States increased 7 percent 

to a record 67 million visitors, resulting in the U.S. claiming the most tourism receipts (11.7 percent) in the world in 2012. In 2012, international visitors contributed 

$180.7 billion in travel spending and supported 14.6 million jobs in all 50 states, 

including 7.7 million directly in the travel industry. Reauthorization of BrandUSA 

will help ensure a sustained increase in international travelers coming to the U.S. 

and staying in our hotels, which will allow the lodging industry to continue driving 

this economic activity and much needed job creation. Further, we appreciate your 

efforts to include additional transparency and accountability measures to allow for 

the program’s success into the future. 

AH&LA and our members across the country thank you for your leadership on 

this issue, and we look forward to working with you to make sure BrandUSA is reauthorized. 

Sincerely, 

The American Hotel & Lodging 

Association 

Alabama Restaurant & Hospitality 

Alliance 

Alaska Hotel & Lodging Association 

Arizona Lodging & Tourism Association 

Arkansas Hospitality Association 

California Hotel & Lodging Association 

Colorado Hotel & Lodging Association 

Connecticut Lodging AssociationFlorida 

Restaurant & Lodging Association 

Georgia Hotel & Lodging Association 

Hawai‘i Lodging & Tourism Association 

Illinois Hotel & Lodging Association 

Indiana Restaurant & Lodging 

Association 

Louisiana Hotel & Lodging Association 

Maine Innkeepers Association 

Massachusetts Lodging Association 

Michigan Lodging and Tourism 

Association 

Montana Lodging & Hospitality 

Association 

Nebraska Hotel & Motel Association 

Nevada Hotel & Lodging Association 

New Hampshire Lodging & Restaurant 

Association 

New York Hospitality & Tourism 

Association 

North Carolina Restaurant & Lodging 

Association Ohio Hotel & Lodging 

Association 

Oklahoma Hotel & Lodging Association 

Oregon Restaurant & Lodging 

Association 

Pennsylvania Restaurant & Lodging 

Association 

Rhode Island Hospitality Association 

44 

South Carolina Restaurant & Lodging 

Association 

Tennessee Hospitality Association 

Texas Hotel & Lodging Association 

The Hawai’I Lodging & Tourism 

Association 

Utah Hotel & Lodging Association 

Vermont Chamber of Commerce 

Virginia Hospitality & Travel 

Association 

Washington Lodging Association 

West Virginia Hospitality & Travel 

Association 

Wisconsin Hotel & Lodging Association 

Wyoming Lodging & Restaurant Association 

AMERICAN BUS ASSOCIATION

Washington, DC 

Hon. GUS BILIRAKIS, 

United States House of Representatives, 

Washington, DC. 

RE: SUPPORT FOR HR 4450 

Dear Mr. Bilirakis: 

My name is Clyde J. Hart and I am the Senior Vice President for Government 

Affairs and Policy for the American Bus Association (ABA). The ABA is the premier 

trade association for the private over-the-road bus and motorcoach industry. The 

ABA is home to some 800 bus operator companies and also represents some 3200 

associations, companies, destinations, attractions, hotels and restaurants in the 

North America. Our bus operating companies transports some 640 million passengers annually. We transport more passengers in two weeks than Amtrak does 

in one year. 

At the same time ABA is very interested and very engaged in promoting travel 

to the United States as a tourist destination. Our membership includes many convention and visitors’ bureaus (CVBs) and Chambers of Commerce whose mission is 

to increase tourism to their areas. Moreover, ABA membership extends to attractions and destinations in Canada. It is because of our mission to grow the motorcoach travel industry that we support HR 4450, the Extend the Travel Promotion 

Act of 2009, bill. 

The Travel Promotion Act of 2009 did much to promote travel into the United 

States. It is responsible for bringing 1.1 million tourists into the country. The TPA 

demonstrated the success of a public-private partnership in advancing tourism and 

the need for it. ABA is happy to be a part of the coalition of tourism entities to continue the work of the TPA. 

Sincerely yours, 

CLYDE J. HART, 

Senior Vice President for 

Government Affairs and Policy. 

Cc: Adam Russell Adam.Russell@mail.house.gov 

AMERICAN GAMING ASSOCIATION

Washington, DC, April 17, 2014 

Hon. GUS BILIRAKIS, 

United States House of Representatives, 

Washington, DC. 

Hon. PETER WELCH, 

United States House of Representatives, 

Washington, DC. 

Dear Representatives Bilirakis and Welch, 

On behalf of the members of the American Gaming Association, I write to express 

our endorsement of your legislation to strengthen our Nation’s ability to promote 

and market that international travelers visit the United States. AGA strongly supports the reauthorization the Travel Promotion Act and the good work of agency responsible for achieving this mission, Brand USA. 

Overwhelmingly approved by Congress in 2010, the Travel Promotion Act, which 

created the public-private partnership Brand USA, helps our nation: 

• Regain its share of the booming travel market, thereby enhancing U.S. economic growth; 

45 

1Source: U.S. Travel Association 

• Spur American job creation—as international travel supports 1.2 million American jobs; 1 and 

• Advance public diplomacy through better communication of U.S. security policies and clearly articulating that the U.S. welcomes international travelers. 

Moreover, all of these benefits come at zero cost to American taxpayers, as the 

costs for Brand USA are underwritten jointly by private-sector contributions, which 

are matched by a $10 fee incurred by visitors from Visa Waiver Program nations. 

International business and leisure travel is critical to gaming communities across 

the U.S., as gaming serves is a popular activity among international visitors and 

as many of our Nation’s most attractive and desirable destinations are also home 

to casinos. 

The fastest growing inbound travel market, Chinese identify ‘‘visiting casinos’’ as 

one of the top ten activities during a visit to the U.S. With the average Chinese 

traveler spending more than $7,000 per visit, it’s essential that we’re marketing and 

promoting for these and other international visitors to spend their money here rather than the other emerging overseas gaming markets, which are located in closer 

proximity and—at times—easier places to visit than the U.S. 

Reauthorizing Brand USA to help market and promote gaming along with the 

myriad benefits of visiting the U.S. is critical to our economies continued success 

and global competitiveness. 

Thank you for championing this legislation and working with Senators Klobuchar 

and Blunt toward a bipartisan, bicameral passage of the reauthorization of the 

Travel Promotion Act and, in turn, Brand USA. 

We appreciate your leadership and stand along with our 332,000 strong gaming 

employees ready to assist your efforts. 

Sincerely, 

GEOFF FREEMAN, 

President and CEO, 

American Gaming Association. 

ASAE—THE CENTER FOR ASSOCIATION LEADERSHIP

Washington, DC, May 8, 2014 

Dear Representative Bilirakis: 

ASAE represents more than 21,000 association executives and industry partners 

from nearly 10,000 tax-exempt organizations. Our members manage leading trade 

associat ions, individual membership societies, and voluntary organizations in every 

state as well as in 50 countries around the globe. Associations are highly supportive 

of policies that facilitate international travel to meetings and conventions here in 

the U.S. 

As a stakeholder in the travel industry, ASAE fully supports your bill, H.R. 4450/ 

S. 2250—the Travel Promotion, Enhancement, and Modernization Act of 2014. This 

bipartisan bill will reauthorize Brand USA, allowing the public private partnership 

to continue its critical work promoting the U.S. abroad and attracting international 

travelers to our shores. 

International travel is a major economic driver for the U.S. economy. When international visitors travel to the United States, they inject new money into the U.S. 

economy by staying in hotels, spending in stores, visiting attractions and eating at 

restaurants. In 2013, international visitors to the U.S. spent $180.7 billion, making 

it the leading service export of all U.S. industries. 

While it is clear that travel is helping drive the U.S. economic recovery, the benefits could be far greater. The United States’ share of global international long-haul 

travel actually fell from 17 percent in 2000 to just 13.2 percent in 2013 despite a 

nearly 60 percent growth in overall global travel. While global international travel 

boomed over the last decade, America failed to keep pace. In 2010, Brand USA was 

created by the Travel Promotion Act to reverse this trend and has already begun 

to show an impressive return on investment. 

For every $1 Brand USA spent in 2013 promoting the U.S. abroad, $47 were 

spent by added international visitors. For Fiscal Year 2013 alone, Brand USA attracted 1.1million additional international travelers whose spending supported more 

than 53,000 new American jobs. The average international visitor spends $4,500 per 

trip on American goods and services in communities across the country. 

46 

This legislation would help the U.S. regain our lost market share by allowing 

Brand USA to continue promoting the U.S. in what has become a truly competitive 

global travel market. Half of Brand USA’s budget is funded by the private sector, 

with a match (up to $100 million) provided by $10 from a fee assessed on visa-free 

international travelers screened through Department of Homeland Security’s Electronic System for Travel Authorization (ESTA). Under this funding structure, Brand 

USA benefits the U.S. economy at no cost to American taxpayers. 

I urge you to help us create more American jobs by advancing H.R. 4450/S. 

2250—the Travel Promotion, Enhancement, and Modernization Act of 2014, a common sense, bipartisan approach to boosting travel to the U.S. and strengthening our 

economy. 

Sincerely, 

JOHN H. GRAHAM IV, CAE, 

PRESIDENT AND CEO. 

AMERICAN SOCIETY OF TRAVEL AGENTS

Alexandria, VA, April 11, 2014 

Hon. AMY KLOBUCHAR, 302 Hart Senate Office Building, 

Washington, DC. 

Hon. ROY D. BLUNT, 

260 Russell Senate Office Building, 

Washington, DC. 

Dear Senators Klobuchar and Blunt: 

I am writing on behalf of the American Society of Travel Agents (ASTA) to express our full support for the Travel Promotion, Enhancement, and Modernization 

Act of 2014 (S. 2250), bipartisan legislation to reauthorize Brand USA. 

ASTA represents 3,300 travel agencies and related travel companies who collectively account for 80 percent of the estimated $141 billion in travel booked through 

the travel agency channel in the U.S. Our members vary in size from the smallest 

home-based agent to the large travel management companies like Carlson Wagonlit 

to the household-name online agencies like Expedia and Priceline. 

Internationally, we are proud to count among our members nearly 800 travel 

agencies in 120 different countries who drive a substantial amount of ‘‘inbound’’ 

travel to the U.S., a fact recognized by the 2012 National Travel and Tourism Strategy, which noted that ‘‘travel agents are important sources of trip planning information for many international travelers.’’ 

As such, ASTA strongly supports S. 2250, which will help the U.S. recapture our 

historic share of worldwide overseas travel. We view the Travel Promotion, Enhancement, and Modernization Act as essential to marketing the U.S. as a desirable 

destination for international tourists, conferences and business, and applaud your 

commitment to generating jobs and economic activity through increased travel. If 

there is anything ASTA can do to help advance this legislation, please let us know. 

Thank you for considering ASTA’s views on this critical issue. If you or your staff 

have any questions on this or any issue related to the travel industry, please don’t 

hesitate to contact me or Eben Peck, ASTA’s VP of Government Affairs. 

Yours sincerely, 

ZANE KERBY, 

President and Chief Executive Officer. 

BUSINESS TRAVEL COALITION

May 16, 2014 

Dear Members of Congress, 

As Chairman of the Business Travel Coalition, I urge you to co-sponsor H.R. 4450/ 

S. 2250—the Travel Promotion, Enhancement, and Modernization Act of 2014. Introduced in the House by Representatives Gus Bilirakis (R–FL–12) and Peter Welch 

(D–VT–1) and in the Senate by Senators Amy Klobuchar (D–MN) and Roy Blunt 

(R–MO), this bipartisan bill will reauthorize Brand USA, allowing the public-private 

partnership to continue its critical work promoting the U.S. abroad and attracting 

international travelers to our shores. 

International travel is a major economic driver for the U.S. economy. When international visitors travel to the United States, they inject new money into the U.S. 

economy by staying in hotels, spending in stores, visiting attractions and eating at 

47 

restaurants. In 2013, international visitors to the U.S. spent $180.7 billion, making 

it the leading service export of all U.S. industries. 

While it is clear that travel is helping drive the U.S. economic recovery, the benefits could be far greater. The United States’ share of global international long-haul 

travel actually fell from 17 percent in 2000 to just 13.2 percent in 2013 despite a 

nearly 60 percent growth in overall global travel. While global international travel 

boomed over the last decade, America failed to keep pace. In 2010, Brand USA was 

created by the Travel Promotion Act to reverse this trend and has already begun 

to show an impressive return on investment. 

For every $1 Brand USA spent in 2013 promoting the U.S. abroad, $47 were 

spent by added international visitors. For Fiscal Year 2013 alone, Brand USA attracted 1.1 million additional international travelers whose spending supported 

more than 53,000 new American jobs. The average international visitor spends 

$4,500 per trip on American goods and services in communities across the country. 

This legislation would help the U.S. regain our lost market share by allowing 

Brand USA to continue promoting the U.S. in what has become a truly competitive 

global travel market. Half of Brand USA’s budget is funded by the private sector, 

with a match (up to $100 million) provided by $10 from a fee assessed on visa-free 

international travelers screened through Department of Homeland Security’s Electronic System for Travel Authorization (ESTA). Under this funding structure, Brand 

USA benefits the U.S. economy at no cost to American taxpayers. 

I urge you to help us create more American jobs by co-sponsoring H.R. 4450/S. 

2250—the Travel Promotion, Enhancement, and Modernization Act of 2014, a common sense, bipartisan approach to boosting travel to the U.S. and strengthening our 

economy. 

Sincerely, 

KEVIN MITCHELL, 

Chairman, 

Business Travel Coalition. 

CRUISE LINES INTERNATIONAL ASSOCIATION

Arlington, VA, April 9, 2014 

Hon. AMY KLOBUCHAR, 

United States Senate, 

Washington, DC. 

Dear Senator Klobuchar: 

The Cruise Lines International Association (CLIA) is pleased to join with the 

broader travel and tourism industry in commending your leadership in introducing 

legislation to reauthorize the Travel Promotion Act (TPA), and for recognizing the 

importance of travel and tourism to the U.S. economy. The TPA resulted in the creation of Brand USA, the Nation’s first global marketing initiative to promote travel 

and tourism to and within the U.S. 

CLIA North America is comprised of 26 cruise lines and 10,700 travel agencies 

representing more than 35,000 individual travel agents and works closely with the 

U.S. Travel Association and other U.S. travel and tourism organizations to encourage travel to United States. The expansive U .S. tourism industry seeks to facilitate 

more travel to the U.S. so that it can be a long-term contributor to U.S. economic 

growth. In 2012, the cruise industry provided significant economic benefits throughout the U.S., generating $42.3 billion in gross output and 356,311 direct and indirect 

jobs paying $17.4 billion in wages. Cruise passenger embarkations at U.S. ports, a 

number of which are international visitors, reached a record 10.1 million, an increase of 2.5 percent over 2011. 

Brand USA is a catalyst for economic growth and job creation. In Fiscal Year 

2013, Brand USA generated 1.1 million additional international trips to the U.S., 

an increase of 2.3 percent in inbound international travel, and those visitors spent 

an average of $4,400 per visit. Overall, visitors to the U.S. add nearly $130 billion 

annually to the U.S. economy. 

CLIA, along with other travel industry assoiations and , businesses, believes that 

by reauthorizing the Travel Promotion Act, the scope and scale of Brand USA’s outreach to potential international visitors will continue to increase. Even a one percent increase in travel from America’s top ten inbound travel markets would add 

more than $1 billion per year to the U.S. economy. 

48 

Thank you again for your leadership on this legislation and promoting the contributions of travel and tourism to the U.S. economy. 

Sincerely, 

CHRISTINE DUFFY, 

President and CEO. 

DESTINATION MARKETING ASSOCIATION INTERNATIONAL

Washington, DC, April 24, 2014 

We are writing in support of the reauthorization of Brand USA and urge your continued support of The Travel Promotion, Enhancement and Moderation Act of 2014 

(H.R. 4450 and S. 2250). 

Brand USA (BUSA) is funded by international visitors and private contributions— 

not U.S. taxpayer dollars. Their work promoting the United States is essential in 

contributing to the U.S. economy and reducing the deficit. Half of BUSA’s budget 

comes from the private sector through cash and in-kind contributions. Many of these 

contributors are members of Destination Marketing Association International 

(DMAI). 

DMAI represents nearly 600 official destination marketing organizations across 

the United States. These organizations are charged with promoting their respective 

destinations and helping the long-term development of their communities through 

a travel and tourism strategy. Collectively, these cities, counties and states invest 

nearly $3 billion annually to fuel the economy and create jobs. While $3 billion is 

a significant investment collectively, over 50 percent of DMAI members have total 

budgets of less than $1 million. These destinations, in particular, are largely reliant 

on the representation of Brand USA to drive high value international traveler dollars to their destinations. 

In a recent analysis performed by Oxford Economics, the study estimated in FY13 

Brand USA generated 1.1 million additional visitors who spent an estimated $3.4 

billion. A one percent increase in visitation from America’s top 10 inbound travel 

markets would add more than $1 billion per year to the U.S. economy—thus offsetting taxpayer burden in local communities and creating jobs. 

The travel industry’s trade surplus is 6.7 percent higher so far this year compared 

to the first two months of last year, far better than the 3.4 percent improvement 

in the U.S. trade balance of other goods and services. Without the $10.1 billion travel trade surplus so far in 2014, the U.S. overall trade deficit would be 12.4 percent 

larger. As you consider making the necessary Federal budget adjustments and investments our Nation needs, we ask you to help preserve the economic stability of 

destinations by supporting the Travel Promotion, Enhancement and Modernization 

Act of 2014, including the reauthorization of funding the Brand USA. 

Sincerely, 

MICHAEL GEHRISCH, 

President and CEO, 

Destination Marketing Association International 

DISNEY DESTINATIONS

Lake Buena Vista, FL, May 8, 2014 

Senator ROY BLUNT, 

260 Russell Senate Office Building, 

Washington, DC. 

Senator AMY KLOBUCHAR, 

302 Hart Senate Office Building, 

Washington, DC. 

Dear Senators Blunt and Klobuchar: 

Walt Disney Parks and Resorts is pleased to support your efforts to pass the Travel Promotion, Enhancement and Modernization Act (S. 2250). 

Each year, Disney welcomes millions of guests from around the world who come 

to America to make memories that will last a lifetime. We are uniquely positioned 

to understand the added value of organizations like Brand USA in increasing visitation. In fact, our positive experience with similar public-private partnerships in both 

Florida and California makes us strong advocates for the reauthorization of Brand 

USA. 

Brand USA is the Nation’s first international marketing endeavor to promote the 

United States as a premier travel destination. With a mission of increasing international visitation to the United States, Brand USA works in close partnership with 

the travel industry to maximize the economic and social benefits of travel. 

49 

This effort has been successful in attracting millions of new international visitors 

to the United States, and these visitors are spending billions of dollars during their 

travels, creating thousands of new American jobs each year, at no cost to the U.S. 

taxpayer. In Fiscal Year 2013, Brand USA generated 1.1 million additional international trips to the United States, resulting in an estimated $3.4 billion in new 

visitor spending, $7.4 billion in increased economic output and $972 million in federal, state and local tax revenue. The program also supported 53,000 U.S. jobs and 

returned an estimated $47 in direct economic benefits for every $1spent on travel 

promotion. 

In addition to promoting the United States as a premier travel destination 

through consumer and travel trade marketing, advertising, events and promotions, 

Brand USA partners with the Federal Government to communicate U.S. entry and 

security processes in order to facilitate an easier and more welcoming journey into 

the United States. 

Walt Disney Parks and Resorts supports reauthorization of this very important 

program and applauds your efforts to pass the bipartisan, bicameral Travel Promotion, Enhancement and Modernization Act, S. 2250 and H.R. 4450. 

Sincerely, 

KENNETH SVENDSEN, 

President, 

Walt Disney Travel Company, 

Senior Vice President Global Sales. 

EXPLORE MINNESOTA TOURISM

St. Paul, MN, May 7, 2014 

Hon. AMY KLOBUCHAR, 

United States Senate, State of Minnesota, 

302 Hart Senate Office Building, 

Washington, DC. 

Dear Senator Klobuchar: 

On behalf of the 245,000 Minnesotans employed in the tourism industry, thank 

you for your leadership on the reauthorization of Brand USA. 

In 2010, the Congress overwhelmingly approved the Travel Promotion Act to establish a public-private partnership to help regain the U.S. share of the global travel market. Brand USA has proven to be successful in increasing international visitors to the United States. 

Thank you for introducing the Travel Promotion, Enhancement and Modernization Act of 2014 to reauthorize the work of Brand USA to promote the United States 

as an international destination. By attracting more visitors, Brand USA enhances 

U.S. economic growth, creates jobs, and advances public diplomacy—all at no cost 

to taxpayers. 

Explore Minnesota’s partnership with Brand USA is extremely important as we 

look to increase the number of international visitors to our region and Minnesota 

in particular. 

Explore Minnesota Tourism is proud to support Brand USA and remains committed to working with them to create coop marketing programs that allow Minnesota’s tourism businesses to advertise on a world stage at a scale not otherwise 

possible. We urge Congress to keep this vital resource for the U.S. travel and tourism industry by reauthorizing Brand USA this year. 

Sincerely, 

JOHN F. EDMAN, 

Director, 

Explore Minnesota Tourism. 

50 

INTERNATIONAL ASSOCIATION OF AMUSEMENT PARKS AND ATTRACTIONS

Alexandria, VA, May 6, 2014 

Hon. AMY KLOBUCHAR, 

United States Senate, 

302 Hart Senate Office Building, 

Washington, DC, 

Hon. ROY BLUNT, 

United States Senate, 

260 Russell Senate Office Building, 

Washington, DC. 

Dear Senators Klobuchar and Blunt: 

The International Association of Amusement Parks and Attractions (IAAPA) represents more than 4,500 facility, supplier, and individual members from more than 

90 countries. In the United States, IAAPA has members in all 50 states. Member 

facilities include amusement/theme parks, waterparks, attractions, family entertainment centers, arcades, zoo, aquariums, museums, science centers, and resorts. We 

thank you for introducing S. 2250 which reauthorizes the ‘‘Travel Promotion, Enhancement, and Modernization Act of 2014.’’ 

Attractions in the United States have an economic impact of nearly $219 billion 

each year. Additionally, in the past ten years, the industry has also grown at twice 

the rate of the U.S. economy increasing employment opportunities across the country. Amusement parks and attractions are among the top draw for international 

visitors to the U.S. 

The Travel Promotion Act and Brand USA have been extraordinarily successful 

in increasing international tourism in the United States. A recent study by Oxford 

Economics found Brand USA marketing generated 1.1million incremental trips to 

the U.S. in 2013 and those visitors spent $3.4 billion. The success of the program 

has also allowed the return of $52 million to the United States Treasury in FY2012 

and 2013 from fee collection. 

The reauthorization of Brand USA will allow the program to strengthen and build 

on the success it has already achieved. The bill strengthens the oversight for the 

program, requiring more performance metrics and reporting. These changes will 

allow the program to continue to flourish and hopefully work to further increase 

international tourism through 2020. 

IAAPA enthusiastically supports the reauthorization of the Travel Promotion Act 

through S. 2250. Amusement parks and attractions are an important sector of the 

U.S. economy, providing thousands of jobs. The industry will only continue to grow 

and benefit the U.S. economy with greater international tourism. 

Sincerely, 

PAUL NOLAND, 

President and CEO. 

MALL OF AMERICA

Bloomington, MN, May 6, 2014 

Hon. AMY KLOBUCHAR, 

United States Senate, 

302 Hart Senate Office Building, 

Washington, DC. 

Dear Senator Klobuchar, 

Mall of America, ‘‘America’s Mall’’ and one of the most visited attractions in the 

country, would like to thank you for introducing S. 2250, the ‘‘Travel Promotion, Enhancement, and Modernization Act.’’ Tourists, particularly those from international 

markets have a huge positive impact on our local and national economy. Brand USA 

has been instrumental in increasing visitation to the United States since 2011. This 

increase resulted in 53,000 new jobs and a $7.4 billion impact on the U.S. economy. 

The international tourist market is the most significant opportunity for Mall of 

America’s $1 billion expansion plan over the next 10 years. Our research shows an 

international visitor spends on average at least 2.5 times more money per visit to 

MOA than a local shopper and 1.5 more than a U.S. tourist. In addition, for every 

$1 international visitors spend at the Mall, they spend at least $3 more in the local 

economy on lodging, car rental, dining, theater, professional sports, etc. Brand USA 

is the critical fuel for MOA to achieve this growth through partnership activities. 

At Mall of America we have seen an increase in visitors from China due to partner marketing with Brand USA and complementary promotional activities. Chinese 

visitors have quickly become the highest spending international tourists in our 

country. Brand USA is our key to promote effectively in China, Brazil, Mexico and 

many other international markets which we otherwise could not. 

51 

Brand USA has another important benefit in that it allows Mall of America to 

partner closely with Explore Minnesota Tourism, the Bloomington Convention and 

Visitors Bureau and other state tourism entities through coordinated opportunities. 

For example, MOA partnered with EMT and BCVB last summer to produce in-language promotional videos for China, Japan, Brazil, Mexico, Germany and Canada. 

We are showcasing Minnesota’s state-wide tourism entities on many websites and 

through social media to international audiences throughout the world. Brand USA 

is the basis for these targeted and effective tourism activities. 

As you know, tourism is a $12.5 billion industry in Minnesota and employs 

245,000 residents. MOA and other state tourism organizations are working closely 

with EMT to grow tourism to a $20 billion industry by 2020. This is an aggressive 

plan and achievable only with Brand USA providing the international marketing 

platform. A $20 billion state tourism industry will produce thousands of new jobs 

and increase state revenue for a multitude of benefits including education, transportation and health care. 

It is critical to our economy that we keep marketing the United States through 

Brand USA. Letting the world know that all parts of America are full of history, 

cultural attractions, entertainment, unique cuisine and of course, great retail will 

continue to increase visits and create thousands of new jobs. 

S. 2250 would strengthen the United States’ position in the global travel and tourism market by reauthorizing Brand USA, a vital public-private partnership that 

promotes international travel to the U.S. and at no cost to taxpayers. 

The travel and tourism industry is an important piece of the overall U.S. economy, and Brand USA strengthens that sector by encouraging millions of international visitors to come to the U.S., who spend billions of dollars in our economy. 

Mall of America thanks you for introducing this important bill and for your continued support of our tourism industry. 

Sincerely, 

MAUREEN HOOLEY BAUSCH, 

Executive Vice President, 

Mall of America. 

NATIONAL TOURISM AND HERITAGE ASSOCIATION

Dear Members of Congress: 

As a leader within the travel industry, I urge you to co-sponsor H.R. 4450/S. 

2250—the Travel Promotion, Enhancement, and Modernization Act of 2014. Introduced in the House by Representatives Gus Bilirakis (R–FL–12) and Peter Welch 

(D–VT–1) and in the Senate by Senators Amy Klobuchar (D–MN) and Roy Blunt 

(R–MO), this bipartisan bill will reauthorize Brand USA, allowing the public-private 

partnership to continue its critical work promoting the U.S. abroad and attracting 

international travelers to our shores. 

International travel is a major economic driver for the U.S. economy. When international visitors travel to the United States, they inject new money into the U.S. 

economy by staying in hotels, spending in stores, visiting attractions and eating at 

restaurants. In 2013, international visitors to the U.S. spent $180.7 billion, making 

it the leading service export of all U.S. industries. 

While it is clear that travel is helping drive the U.S. economic recovery, the benefits could be far greater. The United States’ share of global international long-haul 

travel actually fell from 17 percent in 2000 to just 13.2 percent in 2013 despite a 

nearly 60 percent growth in overall global travel. While global international travel 

boomed over the last decade, America failed to keep pace. In 2010, Brand USA was 

created by the Travel Promotion Act to reverse this trend and has already begun 

to show an impressive return on investment. 

For every $1 Brand USA spent in 2013 promoting the U.S. abroad, $47 were 

spent by added international visitors. For Fiscal Year 2013 alone, Brand USA attracted 1.1 million additional international travelers whose spending supported 

more than 53,000 new American jobs. The average international visitor spends 

$4,500 per trip on American goods and services in communities across the country. 

This legislation would help the U.S. regain our lost market share by allowing 

Brand USA to continue promoting the U.S. in what has become a truly competitive 

global travel market. Half of Brand USA’s budget is funded by the private sector, 

with a match (up to $100 million) provided by $10 from a fee assessed on visa-free 

international travelers screened through Department of Homeland Security’s Electronic System for Travel Authorization (ESTA). Under this funding structure, Brand 

USA benefits the U.S. economy at no cost to American taxpayers. 

52 

I urge you to help us create more American jobs by co-sponsoring H.R. 4450/ 

S. 2250—the Travel Promotion, Enhancement, and Modernization Act of 2014, a 

common sense, bipartisan approach to boosting travel to the U.S. and strengthening 

our economy. 

Sincerely, 

WAYNE INGRAM, 

President and Chief Executive Officer, 

National Tourism and Heritage Association. 

SPRINGFIELD MISSOURI CONVENTION AND VISITORS BUREAU

Springfield, MO, April 11, 2014 

Hon. ROY BLUNT, 

U.S. Senate, 

B40C Dirksen Senate Office Building, 

Washington, DC. 

Dear Senator Blunt, 

Thank you for your role in introducing the Travel Promotion, Enhancement and 

Modernization Act. Reauthorizing Brand USA to continue promoting international 

travel to the United States will help the Nation’s economy and help keep the economy strong in Missouri. 

Your ongoing support of the travel and tourism industry is appreciated and is 

making a difference for your constituents. 

Sincerely, 

TRACY KIMBERLIN, 

President/CEO. 

TRAVEL TECH

Washington, DC, May 8, 2014 

Hon. AMY KLOBUCHAR, 

302 Hart Senate Office Building, 

Washington, DC. 

Hon. ROY D. BLUNT, 

260 Russell Senate Office Building, 

Washington, DC. 

Dear Senators Klobuchar and Blunt: 

On behalf of The Travel Technology Association (Travel Tech), the association for 

the online travel industry, I would like to extend our full support for the Travel Promotion, Enhancement and Modernization Act of 2014 (S. 2250). 

Travel Tech’s members include online travel companies Expedia, Orbitz, Priceline, 

Travelocity and Vegas.com and travel technology service providers Amadeus, Sabre 

and Travelport. As travel distributors and technology solutions providers to the 

travel marketplace, our members see first-hand how travel and tourism positively 

impacts our local, state and national economies. International visitors spent $181 

billion on U.S. travel-related goods and service in 2013. Congress should continue 

its commitment to growing and enhancing travel to the United States by foreign 

travelers and the reauthorization of Brand USA is and has been a successful investment in that endeavor. Brand USA, in its unique structure and make-up, must also 

ensure that American taxpayer dollars are used wisely and ensure that taxpayers 

are getting the most from their investment. This includes sound management of the 

organization, strategic deployment of resources, and a continued focus on resultsbased initiatives. 

The recent data reported by Brand USA demonstrates the tangible impact of their 

efforts and the campaign is paying dividends. Based on these recent successes and 

Travel Tech’s full backing and support of the travel and tourism economy here and 

around the world, please add Travel Tech to the list of supporters for the passage 

of the Travel Promotion, Enhancement and Modernization Act of 2014. 

Please feel free to contact me with any questions about this issue or other travelrelated topics where Travel Tech may be a resource for your continued deliberations. 

Sincerely, 

STEPHEN SHUR, 

President. 

53 

U.S. CHAMBER OF COMMERCE

Washington, DC, April 22, 2014 

Hon. AMY KLOBUCHAR, 

United States Senate, 

Washington, DC. 

Hon. ROY BLUNT, 

United States Senate, 

Washington, DC. 

Dear Sens. Klobuchar and Blunt: 

The U.S. Chamber of Commerce, the world’s largest business federation representing the interests of more than three million businesses of all sizes, sectors, 

and regions, as well as state and local chambers and industry associations, and 

dedicated to promoting, protecting, and defending America’s free enterprise system, 

thanks you for introducing S. 2250, the ‘‘Travel Promotion, Enhancement, and Modernization Act.’’ 

S. 2250 would strengthen the United States’ position in the global travel and tourism market by reauthorizing Brand USA, a vital public-private partnership that 

promotes international travel to the U.S. and at no cost to taxpayers. Since it began 

operations in 2011, Brand USA has been a successful driver of increased travel and 

tourism to the U.S., supporting millions of jobs and creating economic growth. In 

fact, Brand USA’s activities resulted in a $7.4 billion impact on the U.S. economy 

in Fiscal Year 2013 according to an Oxford Economics study. 

The travel and tourism industry is an important piece of the overall U.S. economy, and Brand USA strengthens that sector by encouraging millions of international visitors to come to the U.S., who spend billions of dollars in our economy. 

The Chamber thanks you for introducing this important bill and looks forward to 

working with you on this issue. 

Sincerely, 

R. BRUCE JOSTEN, 

Executive Vice President, Government Affairs. 

U.S. TRAVEL ASSOCIATION

April 4, 2014 

Hon. AMY KLOBUCHAR, 

United States Senate, 

302 Hart Senate Office Building, 

Washington, DC. 

Hon. ROY BLUNT, 

United States Senate, 

260 Russell Senate Office Building, 

Washington, DC. 

Dear Senators Klobuchar and Blunt: 

On behalf of the 14.6 million Americans whose jobs are supported by travel, I am 

writing to thank you for introducing the Travel Promotion, Enhancement, and Modernization Act of 2014 to reauthorize the work of Brand USA to promote the United 

States as an international destination. By attracting more visitors, Brand USA enhances U.S. economic growth, spurs job creation and advances public diplomacy— 

all at no cost to taxpayers. We strongly support your legislation. 

In March 2010, the Congress overwhelmingly approved the Travel Promotion Act, 

to establish a public-private partnership—now called Brand USA—to help regain 

the U.S. share of the booming global travel market and to better communicate U.S. 

security policies. The cost is underwritten jointly by private sector contributions, 

matched by a $10 fee on visitors from Visa Waiver Program nations. 

Because overseas business and leisure travel to the United States is critical to 

local economies across the nation, the President’s National Travel and Tourism 

Strategy set an ambitious goal in 2012 of attracting 100 million additional international visitors within 10 years. To help realize this objective, Brand USA has 

forged working relationships with American communities—large and small, urban 

and rural—and leveraged their promotional efforts into a coherent, cost-effective 

and successful national marketing campaign. 

According to Oxford Economics, during 2013, Brand USA’s worldwide marketing 

campaigns generated 1.1 million incremental visitors to the United States—a 2.3 

percent increase that generated an additional $3.4 billion in revenues. This spending generated $7.4 billion in business sales, $3.8 billion in GDP and $2.2 billion in 

personal income, as well as supporting 53,000 new jobs. That equates to a remarkable return on investment of 47 to 1. 

Travel is already America’s top services export. International visitors spent nearly 

$181 billion in the U.S. on travel-related goods and services last year, an increase 

of more than nine percent over 2012. U.S. travel exports now account for over 26 

percent of all U.S. service exports and nearly eight percent of total U.S. exports. On 

54 

average, overseas visitors spend $4,500 per trip, yielding a travel balance of trade 

surplus exceeding $50 billion. Moreover, these visitors then return home to spread 

the word about America’s attractions and hospitality, generating goodwill for years 

to come. 

That is why we are so enthusiastically supportive of your bill to reauthorize 

Brand USA. Through Brand USA and at no public expense, the United States can 

continue to expand its share of the extraordinarily lucrative international travel 

market. Toward that end, we are very pleased that you—with Reps. Welch and Bilirakis, the lead House sponsors—are working on a bipartisan, bicameral basis for its 

reauthorization. We appreciate your leadership and stand ready to help in any way 

possible. 

Sincerely, 

ROGER J. DOW, 

President and CEO, 

U.S. Travel Association. 

UNITED STATES OLYMPIC COMMITTEE

May 23, 2014 

Hon. AMY KLOBUCHAR, 

United States Senate, 

302 Hart Senate Office Building, 

Washington, DC. 

Hon. ROY BLUNT, 

United States Senate, 

260 Russell Senate Office Building, 

Washington, DC. 

Dear Senators Klobuchar and Blunt: 

On behalf of the United States Olympic Committee (USOC), we would like to 

thank you for introducing the Travel Promotion, Enhancement, and Modernization 

Act of 2014 to reauthorize the work of Brand USA to promote the United States 

as an international destination. By attracting more visitors, Brand USA enhances 

U.S. economic growth, spurs job creation, and of particular interest to us, advances 

public diplomacy—all at no cost to taxpayers. 

The United States Olympic Committee is itself an organization chartered by Congress through the Ted Stevens Olympic and Amateur Sports Act. We are the umbrella organization for 47 Sport National Governing Bodies, encompassing sport disciplines competed in at the Olympic, Paralympic, and Pan American Games. 

The USOC remains uniquely and actively engaged in international travel and security issues with our International Olympic Committee (IOC), International 

Paralympic Committee (IPC), and International Sport Federation (IF) counterparts 

around the globe. We regularly work with the Department of Homeland Security 

and the Department of State to facilitate the visa and entry process for athletes, 

coaches, referees, the IOC, IPC, and IF officials during the dozens of competitions 

and conferences hosted in the U.S. annually. Overseas business travel to these U.S.- 

hosted events is not only critical to local economies across the nation, but to the vibrancy of the Olympic Movement in general, and the sustained competitive excellence of Team USA especially. 

The USOC was supportive in 2012 of the President’s National Travel and Tourism 

Strategy, which set an ambitious goal of attracting 100 million additional international visitors within 10 years. The facilitation of the image of the U.S. as a welcoming destination has other direct implications—many of those individuals who 

come to the U.S. for the abovementioned competitions and conferences will be in decision-making positions about whether major events, such as World Championships, 

World Cups, and even Olympic and Paralympic Games, will be hosted in the United 

States. Hosting these major events can be a potential driver for job creation, and 

these individuals’ entry experience into the United States will continue to shape 

their perceptions and opinions about how receptive the U.S. is to foreign travelers. 

Positive changes to these perceptions are important benchmarks along the path to 

the U.S. potentially being selected again to host the Olympic and Paralympic 

Games. 

Thank you, again, for introducing this important legislation. We enthusiastically 

support the reauthorization of Brand USA. Through Brand USA, and at no public 

expense, the United States can continue to expand its share of the economically 

vital international travel market. We look forward to continuing to support your efforts—and those of Representatives Welch and Bilirakis, the lead House sponsors— 

55 

to move this bi-partisan, bi-cameral legislation through Congress. We appreciate 

your leadership and stand ready to be of assistance. 

Sincerely, 

DESIREE FILIPPONE, 

Managing Director, Government Relations. 

UNITED STATES TOUR OPERATORS ASSOCIATION

New York, NY, April 22, 2014 

Senator AMY KLOBUCHAR, 302 Hart Senate Office Building, 

Washington, DC. 

Dear Senator Klobuchar: 

On behalf of the United States Tour Operators Association (USTOA), Iam writing 

to thank you for introducing the Travel Promotion Act, S. 2250, which would reauthorize Brand USA through 2020. You have long been a great supporter of the travel and tourism industry, and we truly appreciate your continued leadership in pushing for important, successful programs like Brand USA. 

As the trade association for America’s tour operators, USTOA strongly supports 

efforts to build and promote a vibrant travel and tourism industry in the U.S. Our 

industry is a major sector of the nationaleconomy,generating $2 trillion annually in 

economic activity. It supports 14.6 million American jobs and has far-reaching economic impacts throughout the supply chain. Since it was formed, Brand USA has 

been instrumental in promoting American travel and tourism. We are grateful that 

you recognize the program’s success and are proposing to reauthorize it through 

2020. We are also very encouraged that your bill has wide bipartisan support from 

Senators across the U.S. When it comes to creating jobs and improving the economy, 

Democrats and Republicans can agree that the travel and tourism industry presents 

unique opportunities for growth in all fifty states. 

Again, please accept our sincere thanks for introducing the Travel Promotion Act. 

About USTOA 

The United States Tour Operators Association (USTOA) is a professional, voluntary trade association created with the primary purpose of promoting integrity 

within the tour operator industry. USTOA was founded in 1972 by a small group 

of California tour operators concerned about tour operator bankruptcies. These 

founding members recognized the need for a unified voice to protect the traveling 

public, as well as to represent the interests of tour operators. In 1975, USTOA became a nationalorganization with its headquarters in New York. USTOA Active Members represent an $11 billion industry that purchases over $8 

billion in goods and services for travel packages. Together with its Associate Members they employ over 450,000 U.S. citizens. 

Sincerely, 

TERRY DALE, 

President and CEO, 

United States Tour Operators Association. 

VISIT FLORIDA 

March 5, 2014 

Congressman GUS M. BILIRAKIS, 

2313 Rayburn House Office Building, 

Washington, DC. 

Dear Rep. Bilirakis: 

On behalf of the nearly 1.1 million Floridians employed in the tourism industry, 

thank you for your leadership on the reauthorization of Brand USA. 

Brand USA has proven to be extremely successful in increasing international visitation to the United States. A recent Oxford Economics report on the impact of 

Brand USA shows that their marketing efforts in 2013 increased inbound international travel to the United States by 2.3 percent, spurred $3.4 billion in new visitor spending,supported 53,000 jobs and generated $972 million in taxes. Brand 

USA returns $47 in direct economic benefits for every $1 spent on travel promotion. 

VISIT FLORIDA’s partnership with Brand USA is extremely important as we 

work to establish Florida as the No. 1travel destination in the world. Brand® USA 

56 

allows VISIT FLORIDA and our Florida tourism industry partners to leverage our 

international resources, increase our presence in the global marketplace and participate in innovative global marketing partnerships that could only be implemented 

on a national scale. VISIT FLORIDA was the first destination marketing organization to sign on as a Brand USA Founding Partner and because of the value that 

they add to our destination marketing efforts and their success in growing the number of international visitors to the U.S. we will continue to increase our investment 

moving forward. 

VISIT FLORIDA is proud to have supported Brand USA from their inception and 

remains committed to working with them to create co-op marketing programs that 

allow Florida’s tourism businesses to advertise on a world stage at a scale not otherwise possible. We urge Congress to keep this vital resource for the U.S. travel and 

tourism industry by reauthorizing Brand USA this year. 

Sincerely, 

WILL SECCOMBE, 

President and CEO, 

VISIT FLORIDA. 

HAWAI‘I TOURISM AUTHORITY

HAWAI‘I’S VISITOR INDUSTRY BACKGROUND AND DATA

Table of Contents 

1. Fact Sheet: Context for 2014 

2. Targets 

3. Return of Investment 

4. Airseat Outlook 

5. Fact Sheets: By Island 

a. O‘ahu 

b. Maui 

c. Kaua‘i 

d. Hawai‘i Island 

6. Fact Sheets: by Major Market Area 

a. North America 

b. Japan 

c. Oceania 

d. China 

e. Korea 

f. Taiwan 

g. Europe 

7. Appropriations and TAT Allocation 

8. Powerpoint: Hawai‘i’s Visitor Industry 

9. Aloha 

CONTEXT FOR 2014 

For the first 90 days, we have seen a plateau or leveling off of our 2014 arrivals 

and expenditures which has resulted in: 

• Slightly lower numbers than our record 2013 year. 

• 516 fewer air passenger arrivals per day (–2.3 percent). 

• Approximately 215,927 guests on all islands on any given day (–2.1 percent). 

• $1.33 less per day in visitor spending in comparison to last year (–3.1 percent). 

• An average of $1,854 in visitor spending per trip, $3 more than last year (0.2 

percent). 

• An average of $42.3 million in total visitor spending per day: $20 million on 

O‘ahu, $11.8 million in Maui County, $4.3 million on Kaua‘i, $6.1 million on 

Hawai‘i Island, and $156,000 by visitors who arrived by cruise ship. This resulted in $406 in state tax revenue. 

57 

• 173,000 jobs annually supported by the tourism industry. 

• Fewer arrivals from the U.S. West and East during the first three months of 

the year. In 2013, 1,240,665 visitors (60 percent of all visitors) came to the Hawaiian Islands compared to 1,178,610 (58 percent of all visitors) in 2014. 

• Increases in international visitor arrivals during the first three months of the 

year with 1,282,490 (62 percent of all visitors) in 2013 compared to 1,291,121 

(64 percent of all visitors) in 2014. 

• 5th highest occupancy in the U.S., with 76.2 percent average statewide. 

• 2nd highest ADR in the U.S., with an average rate of $227. 

• Fourth largest international port of air entry in the U.S. 

• 1.3 million residents and yet more than 11 million air seats. 

• 920 flights per week from more than 53 cities by 21 carriers. 

In Summary 

We have to keep on top of the trends for our customers, airlines, hotels and destination experiences. What we do in the next five years will affect the next 25. Time 

is short and the list is long. Reopening Kona as a secondary international port of 

entry, creating new inventory to growing international markets, and increasing our 

MCI segment are all key initiatives for the HTA. 

We must collectively work together with focus and purpose for the long-term sustainability of Hawai‘i’s tourism economy. 

Our partnerships with Hawai‘i Business Round Table, Enterprise Honolulu, 

Hawai‘i Chamber of Commerce and the Hawai‘i Retail Merchants Association will 

be very powerful, dynamic and helpful as we move forward collectively. As will our 

leadership role with the U.S. Travel Association. These collaborations will help us 

move forward and keep tourism, as well as the military and other businesses and 

industries strong, while creating a new vehicle for promoting science and innovation 

to benefit Hawai‘i’s economy and community. 

58 


508HTA1.eps
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508HTA2.eps
60 

Hawaii Tourism Authority 

Comparison of Visitor Industry and Economic Indicators to HTA FY Expenditures 

Calendar Year 2002 2003 2004 2005 2006 2007 2008 

Visitor Arrivals (air + cruise) 6,452,834 6,442,020 6,991,927 7,494,236 7,628,118 7,627,819 6,822,911 Visitor Expenditures (millions $) 1 $9,994 $10,055 $10,862 $11,904 $12,492 $12,811 $11,399 Visitor Days 60,515,052 59,227,930 63,343,173 68,241,986 69,884,925 70,075,021 63,857,378 Per Person Per Day Spending (PPPD$) 1 $165.15 $169.77 $171.48 $174.44 $178.75 $182.82 $178.51 Length of Stay (LOS) 9.38 9.19 9.06 9.11 9.16 9.19 9.36 Air Seats (scheduled & charter) 8,252,306 8,557,770 9,317,245 10,024,142 10,361,052 10,190,698 9,162,013 State tax revenues (million $) $912.00 $905.40 $950.80 $1,046.50 $1,158.30 $1,220.60 $1,076.30 TAT (FY) $157,634,488 $170,864,689 $181,847,751 $198,774,268 $216,996,215 $224,931,245 $229,377,993 Jobs 2 165,978 167,582 169,062 178,047 175,115 172,416 151,331 Cost per Arrival 3 $9.26 $9.82 $9.05 $8.65 $9.27 $9.61 $11.47 ROI: Tax Revenue Generated/HTA Expenditures 15.3 14.3 15.0 16.1 16.4 16.6 13.8 ROI: Visitor Expenditures/HTA Expenditures 167.3 158.9 171.6 183.7 176.6 174.7 145.7 HTA FY Expenditures $59,743,471 $63,292,000 $63,292,000 $64,800,411 $70,740,766 $73,327,586 $78,229,323 

Hawaii Tourism Authority—Continued 

Comparison of Visitor Industry and Economic Indicators to HTA FY Expenditures 

Calendar Year 2009 2010 2011 2012 2013 2014T 

Visitor Arrivals (air + cruise) 6,517,054 7,018,133 7,299,047 8,028,743 8,235,510 8,443,500 Visitor Expenditures (millions $) 1 $9,993 $11,066 $12,158 $14,365 $14,735 $15,314 Visitor Days 60,836,666 65,465,125 68,466,519 74,519,278 75,395,940 76,557,979 Per Person Per Day Spending (PPPD$) 1 $164.26 $169.04 $177.6 $192.8 $195.44 $200.02 Length of Stay (LOS) 9.33 9.33 9.38 9.28 9.15 9.07 Air Seats (scheduled & charter) 8,676,773 9,299,913 9,392,291 10,322,464 10,896,815 11,086,424 State tax revenues (million $) $932.46 $1,045.55 $1,324.66 $1,501.21 $1,539.93 $1,600.35 TAT (FY) $210,613,996 $224,242,539 $284,462,891 $323,939,591 368,555,996 $403,048,000 Jobs 2 133,618 145,235 155,732 166,480 170,775 177,475 Cost per Arrival 3 $11.05 $9.85 $10.98 $9.39 $8.40 $10.12 ROI: Tax Revenue Generated/HTA Expenditures 12.9 15.1 16.5 19.9 22.3 18.7 ROI: Visitor Expenditures/HTA Expenditures 138.7 160.1 151.7 190.6 213.1 179.2 HTA FY Expenditures $72,029,987 $69,139,336 $80,139,000 $75,375,000 $69,152,000 $85,455,000 

T—HTA target (February 2014) 1 Includes Supplemental Business Expenditures 2 Jobs generated from tourism sector 3 Cost is HTA’s FY Expenditures 

61 

HTA Airline Seat Capacity Outlook for Second Quarter 2014 

The Hawai‘i Tourism Authority (HTA), the state’s tourism agency, forecasts the 

continued growth of total scheduled nonstop air seats to Hawai‘i in the second quarter of 2014. The projection is based on flights appearing in Diio airline schedules 

as of March 2014. 

Following a 2.4 percent increase in the first quarter of 2014, scheduled nonstop 

air seats to Hawai‘i are expected to grow at a slightly faster rate (+3.1 percent) in 

the second quarter. 

Growth in the second quarter of 2014 is expected to be driven by continued increases from international cities (+4.8 percent), along with a 2.2 percent increase 

in domestic seats. Supported by growth in both the domestic and international markets, airlines are expected to operate more than 2.7 million air seats to the Hawaiian Islands in the second quarter, a record high for inbound scheduled capacity to 

the state during the April through June period. 

2014 Q2 2013 Q2 % 

TOTAL 2,740,102 2,659,002 3.1% 

DOMESTIC 1,851,086 1,811,018 2.2% 

US WEST 1,644,857 1,596,995 3.0% 

US EAST 206,229 214,023 –3.6% 

INTERNATIONAL 889,016 847,984 4.8% 

JAPAN 508,993 481,906 5.6% 

CANADA 82,282 75,494 9.0% 

OTHER ASIA 127,844 105,178 21.6% 

OCEANIA 105,602 109,798 –3.8% 

OTHER 64,295 75,608 –15.0% 

Source: Diio Mi Airline Schedules as of March 2014 

U.S. West 

Scheduled seats from each of Hawai‘i’s top core U.S. West gateway markets are 

expected to rise (Los Angeles, +7.9 percent; San Francisco, +1.6 percent; Seattle, 

+6.3 percent), more than offsetting capacity reductions from San Jose (–4.0 percent) 

and smaller markets operated by Allegiant (i.e., Eugene, Fresno, Phoenix-Mesa, 

Santa Maria and Spokane). Overall, U.S. West scheduled seat capacity is expected 

to be up 3.0 percent above prior year levels. 

U.S. East 

Second quarter seat capacity from the U.S. East market is expected to decrease 

3.6 percent, as additional service from Dallas (+5.1 percent) and Houston (+3.9 percent) is offset by reductions in capacity from Washington, D.C. (–35.3 percent) and 

New York (–13.2 percent). 

Japan 

Scheduled nonstop seats from Japan are expected to rise 5.6 percent in the second 

quarter, boosted by Japan Airlines’ upgrading to larger Boeing 777 aircraft on the 

majority of its flights to Hawai‘i, as well as an increase in flights out of TokyoNarita. United Airlines’ upgrading from Boeing 777 to larger Boeing 747 aircraft is 

also expected to contribute to the second quarter increase. Notable year-over-year 

increases are expected from Osaka (+8.4 percent) and Nagoya (+37.1 percent). 

Canada 

Nonstop air seats from Canada to Hawai‘i are expected to rise 9.0 percent in the 

second quarter of 2014, driven by significant increases in service to the neighbor islands: Maui (+10.2 percent), Kaua‘i (+66.7 percent) and Hawai‘i Island (+50.8 percent). 

Other Asia 

Other Asia is expected to be Hawai‘i’s fastest growing region for scheduled air 

seats during the April through June 2014 period, boosted by the launch of nonstop 

Beijing-Honolulu flights by Air China (January) and Hawaiian Airlines (April), and 

the expansion of Shanghai-Honolulu service by China Eastern Airlines (+73.2 percent). The continuation of nonstop Taipei-Honolulu flights by China Airlines 

(launched in June 2013) and Hawaiian Airlines (launched in July 2013, but suspended as of April 2014) will also contribute to the expected double-digit increase 

(+21.6 percent) in seats from the overall Other Asia market. Meanwhile, nonstop 

seats from South Korea are expected to decrease 10.1 percent in the second quarter. 

62 

Oceania 

After posting double-digit increases in annual air seats every year since 2011, air 

seat growth from Oceania is leveling off with a projected 3.8 percent decrease in air 

seats in the second quarter. While scheduled seats from Auckland (+7.3 percent), 

Brisbane (+8.1 percent) and Melbourne (+9.7 percent) are all expected to register 

notable year-over-year gains, these increases are expected to be offset by an 11.1 

percent decrease in capacity from Sydney. 

For more information about the Airline Seat Capacity Outlook or other research 

related reports, please contact: 

Daniel Na ̄ho‘opi‘i 

Director of Tourism Research 

Hawai‘i Tourism Authority 

daniel@gohta.net 

www.hawaiitourismauthority.org/research 

CITY & COUNTY OF HONOLULU OVERVIEW 

Visitor Statistics 

Honolulu 2014 

YTD* 

2013 

YTD* 

YTD % 

change 2013p 2012 2011 % change 2013/12 

Total Expenditures ($mil) 587.4 670.4 –12.4% 7,277.9 7,672.5 5,593.1 –5.1% 

Visitor Arrivals 413,425 407,151 1.5% 5,100,169 4,904,045 4,372,181 4.0% 

PPPD Spending ($) 193.2 214.4 –9.9% 205.0 213.9 176.8 –4.2% 

Source: Hawai‘i Tourism Authority 

*YTD actuals through January 2014 and January 2013 

Air Seats 

Honolulu 2014 

YTD* 2013 YTD* YTD % change 2013p 2012 2011 % change 2013/12 

Domestic Seats 356,805 351,098 1.6% 4,372,884 4,215,824 3,968,283 6.2% 

International Seats 305,403 276,563 10.4% 3,416,433 3,043,155 2,592,284 17.4% 

Total Seats 662,208 627,661 5.5% 7,789,317 7,258,979 6,560,567 10.6% 

Source: Diio for 2013 YTD and 2012 YTD, OAG for whole years 2012 and 2011 

*YTD actuals through January 2014 and January 2013 

Transient Accommodations Tax to City & County of Honolulu 

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 

TAT ($mil) 44.44 45.32 41.61 39.94 45.39 41.01 41.01 

Note: City & County of Honolulu receives 44.1% of the TAT revenues distributed to the counties. 

HTA Programs and Funding 

2012 2013 2014 

HTA Programs No. of 

Programs Amount No. of Programs Amount No. of Programs Amount 

County Product Enrichment 40 $325,000 28 $310,000 26 $325,000 

*Ku ̄kulu Ola: Hawaiian Culture Community 5 $303,323 9 $268,000 8 $220,000 

Major Festivals 4 $361,000 4 $591,000 4 $591,000 

Native Hawaiian Festivals 5 $420,000 5 $420,000 5 $470,000 

*Natural Resources Community-Based 8 $543,448 8 $291,612 7 $234,000 

Safety & Security 1 $230,000 1 $218,000 1 $272,000 

Sporting Events 6 $5,135,000 7 $5,212,500 7 $5,790,000 

**Career Development 1 $20,000 0 $— 1 $25,000 

***O‘ahu Visitors Bureau $3,269,812 $3,245,269 $3,279,269 

Total HTA Program Funding $10,607,583 $10,556,381 $11,206,269 

*In 2013, the HTA funded 4 statewide Natural Resources Community-based programs at $133,058 and 1 statewide Hawaiian Culture Community program at $28,000 

In 2014, the HTA funded 3 statewide Natural Resources Community based programs at $100,000 and 4 statewide Hawaiian Culture 

Community program at 138,000. 

**In 2013, the HTA funded 2 statewide Career Development programs at $72,500 ($45,000 DOE CTE and $27,500 LEI) 

***HTA provides funding for the Hawai‘i Visitors and Convention Bureau. Total amounts are inclusive of leisure, MCI, HVCB and 

international contractors funding. 

63 

MAUI COUNTY OVERVIEW 

Visitor Statistics 

Maui County 2014 

YTD* 

2013 

YTD* 

YTD % 

change 2013P 2012 2011 % change 2013/12 

Total Expenditures ($mil) 366.8 391.6 –6.3% 3,737.5 3,461.2 3,043.8 13.7% 

Visitor Arrivals 195,400 200,937 –2.8% 2,362,629 2,309,194 2,168,487 6.5% 

PPPD Spending ($) 193.2 212.0 –8.9% 194.0 185.5 173.5 6.9% 

Source: Hawai‘i Tourism Authority 

*YTD actuals through January 2014 and January 2013 

MOLOKAI 2014 

YTD* 

2013 

YTD* 

YTD % 

change 2013P 2012 2011 % change 2013/12 

Total Expenditures ($mil) 6.7 4.5 4.4% 30.1 28.3 28.0 1.3% 

Visitor Arrivals 5,143 5,588 –8.0% 55,237 53,323 55,250 –3.5% 

PPPD Spending ($) 193.2 129.7 49.0% 113.7 109.5 108.9 0.5% 

*Source: Hawai‘i Tourism Authority 

**YTD actuals through January 2014 and January 2013 

Lanai 2014 

YTD* 

2013 

YTD* 

YTD % 

change 2013P 2012 2011 % change 2013/12 

Total Expenditures ($mil) 4.4 7.9 –44.3% 87.2 79.6 80.2 –0.7% 

Visitor Arrivals 5,697 6,527 –12.7% 74,526 72,649 75,004 –3.1% 

PPPD Spending ($) 193.2 317.0 –39.1% 334.9 303.1 304.0 –0.3% 

Source: Hawai‘i Tourism Authority 

*YTD actuals through January 2014 and January 2013 

Air Seats 

Kahului 2014 

YTD* 

2013 

YTD* 

YTD % 

change 2013P 2012 2011 % change 2013/12 

Domestic Seats 137,709 141,269 –2.5% 1,671,934 1,613,642 1,537,738 4.9% 

International Seats 26,704 27,056 –1.3% 171,994 168,399 150,856 11.6% 

Total Seats 164,413 168,325 –2.3% 1,843,928 1,782,041 1,688,594 5.5% 

Source: Diio for 2013 YTD and 2012 YTD, Diio database for whole years 2012 and 2011 

*YTD actuals through January 2014 and January 2013 

Transient Accommodations Tax (TAT) Distributed 

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 

TAT ($mil) 22.98 23.43 21.51 20.65 23.47 21.20 21.2 

Note: Maui County receives 22.8% of the TAT revenues distributed to the counties. 

HTA Programs and Funding 

2012 2013 2014 

HTA Programs No. of 

Programs Amount No. of Programs Amount No. of Programs Amount 

County Product Enrichment 24 $332,000 22 $305,000 23 $345,000 

*Ku ̄kulu Ola: Hawaiian Culture Community 0 $— 0 $— 1 $ 20,000 

Major Festivals 1 $105,000 1 $105,000 1 $105,000 

Native Hawaiian Festivals 2 $60,000 2 $60,000 2 $60,000 

*Natural Resources Community-Based 2 $59,225 4 $90,700 6 $136,000 

Safety & Security 1 $25,000 1 $46,000 1 $46,000 

Sporting Events 3 $579,000 3 $565,000 3 $565,000 

**Career Development 2 $55,000 0 $— 0 $— 

***Maui Visitors & Convention Bureau $2,906,436 $2,882,071 $2,877,071 

***Moloka‘i Visitors Association $248,782 $244,741 $244,741 

**Destination Lana‘i $144,000 $143,000 $143,000 

Total HTA Program Funding $4,514,443 $4,441,512 $4,541,812 

*In 2013, the HTA funded 4 statewide Natural Resources Community-based programs at $133,058 and 1 statewide Hawaiian Culture Community program at $28,000 

In 2014, the HTA funded 3 statewide Natural Resources Community based programs at $100,000 and 4 statewide Hawaiian Culture 

Community program at 138,000. 

** In 2013, the HTA funded 2 statewide Career Development programs at $72,500 ($45,000 DOE CTE and $27,500 LEI) 

*** HTA provides funding for the Hawai‘i Visitors and Convention Bureau and each of the island chapter bureaus. Total amounts 

are inclusive of leisure, MCI, HVCB and international contractors funding. 

64 

KAUA‘I COUNTY OVERVIEW 

Visitor Statistics 

Kaua‘i County 2014 

YTD* 

2013 

YTD* 

YTD % 

change 2013p 2012 2011 % change 2013/12 

Total Expenditures ($mil) 160.0 136.6 17.1% 1,453.2 1,290.3 1,174.0 12.6% 

Visitor Arrivals 91,161 92,142 –1.1% 1,113,523 1,084,681 1,011,500 2.7% 

PPPD Spending ($) 193.2 175.3 10.2% 171.0 158.0 154.5 8.3% 

Source: Hawai‘i Tourism Authority 

*YTD actuals through January 2014 and January 2013 

Air Seats 

Kaua‘i County 2014 

YTD* 

2013 

YTD* 

YTD % 

change 2013p 2012 2011 % change 2013/12 

Domestic Seats 48,807 53,603 –8.9% 581,754 575,667 511,660 1.1% 

International Seats 5,394 2,158 150.0% 18,514 16,434 7,504 12.7% 

Total Seats 54,201 55,761 –2.8% 600,268 589,030 519,164 1.4% 

Source: Diio for 2013 YTD and 2012 YTD, OAG for whole years 2012 and 2011 

*YTD actuals through January 2014 and January 2013 

Transient Accommodations Tax to Kaua‘i County 

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 

TAT ($mil) 14.61 14.90 13.68 13.13 14.92 13.48 13.48 

Note: Kaua‘i receives 14.5% of the TAT revenues distributed to the counties. 

HTA Programs and Funding 

2012 2013 2014 

HTA Programs No. of 

Programs Amount No. of Programs Amount No. of Programs Amount 

County Product Enrichment 21 $325,000 28 $325,000 24 $350,000 

*Ku ̄kulu Ola: Hawaiian Culture Community 1 $40,000 2 $79,000 2 $50,000 

Major Festivals 1 $63,500 1 $63,500 1 $63,500 

Native Hawaiian Festivals 2 $22,200 2 $24,000 1 $20,000 

*Natural Resources Community-Based 2 $64,225 5 $169,372 2 $80,000 

Safety & Security 1 $56,000 1 $53,000 1 $53,000 

Sporting Events 0 $— 1 $25,000 1 $25,000 

**Career Development 1 $10,000 0 $— 0 $— 

***Kaua‘i Visitors Bureau $2,315,209 $2,285,893 $2,280,893 

Total HTA Program Funding $ 2,896,134 $ 3,024,765 $ 2,922,393 

* In 2013, the HTA funded 4 statewide Natural Resources Community-based programs at $133,058 and 1 statewide Hawaiian Cul- ture Community program at $28,000 

In 2014, the HTA funded 3 statewide Natural Resources Community based programs at $100,000 and 4 statewide Hawaiian Culture 

Community program at $138,000. 

** In 2013, the HTA funded 2 statewide Career Development programs at $72,500 ($45,000 DOE CTE and $27,500 LEI) 

*** HTA provides funding for the Hawai‘i Visitors and Convention Bureau and each of the island chapter bureaus. Total amounts are 

inclusive of leisure, MCI, HVCB and international contractors funding. 

HAWAI‘I COUNTY OVERVIEW 

Visitor Statistics 

Hawai‘i County 2014 

YTD* 

2013 

YTD* 

YTD % 

change 2013p 2012 2011 % change 2013/12 

Total Expenditures ($mil) 234.9 217.3 8.1% 1,898.8 1,660.8 1,459.2 13.8% 

Visitor Arrivals 130,059 133,953 –2.9% 1,450,247 1,433,282 1,318,310 8.7% 

PPPD Spending ($) 193.2 181.3 6.6% 177.1 158.9 150.6 5.5% 

Source: Hawai‘i Tourism Authority 

* YTD actuals through January 2014 and January 2013 

Air Seats 

Kona 2014 

YTD* 

2013 

YTD* 

YTD % 

change 2013p 2012 2011 % change 2013/12 

Domestic Seats 55,685 55,884 –0.4% 588,403 609,337 574,934 6.0% 

International Seats 6,238 3,832 62.8% 26,311 21,439 11,980 79.0% 

Total Seats 61,923 59,716 3.7% 614,714 630,776 586,914 7.5% 

Source: Diio for 2013 YTD and 2012 YTD, OAG for whole years 2012 and 2011 

* YTD actuals through January 2014 and January 2013 

65 

Hilo 2014 

YTD* 2013 YTD* YTD % change 2013p 2012 2011 % change 2013/12 

Domestic Seats 3,804 4,239 –10.3% 48,588 58,577 37,052 58.1% 

International Seats 0 0 na 0 0 0 na 

Total Seats 3,804 4,239 –10.3% 48,588 58,577 37,052 58.1% 

Source: Diio for 2013 YTD and 2012 YTD, OAG for whole years 2012 and 2011 

* YTD actuals through January 2014 and January 2013 

Transient Accommodations Tax (TAT) to Hawai‘i County 

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 

TAT ($mil) 18.74 19.11 17.55 16.85 19.15 17.3 17.3 

Note: Hawai‘i County receives 18.6% of the TAT revenues distributed to the counties. 

HTA Programs and Funding 

2012 2013 2014 

HTA Programs No. of 

Programs Amount No. of Programs Amount No. of Programs Amount 

**County Product Enrichment 22 $357,083 18 $ 329,200 18 $ 328,983 

*Ku ̄kulu Ola: Hawaiian Culture Community 1 $45,000 1 $25,000 5 $52,000 

Major Festivals 1 $63,500 1 $63,500 1 $63,500 

Native Hawaiian Festivals 3 $107,500 3 $109,000 4 $125,000 

*Natural Resources Community-Based 2 $60,527 5 $185,258 7 $250,000 

Safety & Security 1 $123,500 1 $117,500 1 $120,500 

Sporting Events 2 $400,000 3 $390,000 2 $380,000 

Workforce Development 1 $10,000 0 $— 0 $— 

***Big Island Visitors Bureau $2,265,968 $2,236,356 $2,231,356 

Total HTA Program Funding $ 3,433,078 $ 3,455,814 $ 3,551,339 

* In 2013, the HTA funded 4 statewide Natural Resources Community-based programs at $133,058 and 1 statewide Hawaiian Culture Community program at $28,000 

In 2014, the HTA funded 3 statewide Natural Resources Community based programs at $100,000 and 4 statewide Hawaiian Culture 

Community program at 138,000. 

** The County Product Enrichment Program (CPEP) FY 12 budget is $335,583. In addition, $21,500 was rolled over from 2011 & 

2010 CPEP budgets. 

*** HTA provides funding for the Hawai‘i Visitors and Convention Bureau and each of the island chapter bureaus. Total amounts are inclusive of leisure, MCI, HVCB and international contractor funding. 

NORTH AMERICA FACT SHEET

North America Overview 

North America continues to be Hawai‘i’s largest source market for visitors. This 

market includes visitors who travel to the Hawaiian Islands from the U.S. West (defined as the 11 Pacific states west of the Rockies), U.S. East (all other states) and 

Canada. As the U.S. economy is projected to grow in 2014, demand for travel to the 

Hawaiian Islands from the region remains strong, with domestic air seats accounting for 66 percent of total seats to the state. The HTA continues to work with the 

Hawai‘i Visitors & Convention Bureau (HVCB), its marketing contractor for North 

America, to reach aggressive targets set by the HTA. 

2013 Quick Facts 

Visitor Expenditures: $9.38 billion.

Primary Purpose of Stay: Pleasure (4,499,274) vs. MCI (288,195).

Average Length of Stay: 10.14 days.

First Time Visitors: 27.6%.

Repeat Visitors: 72.4%.

U.S. West 

U.S. WEST MMA (by Air) 2011 2012 2013p % Change 

2012–2013p 2014 Target % Change 2013p–2014T 

Visitor Expenditures* 

($ Millions) 4,142.8 4,640.1 4,772.8 2.9% 4,839.0 1.4% 

Visitor Days 28,768,587 30,471,505 30,733,731 0.9% 30,549,130 –0.6% 

Arrivals 2,994,731 3,178,824 3,219,621 1.3% 3,219,600 0.0% 

Per Person Per Day 

Spending* ($) 144.0 152.3 155.3 2.0% 158.4 2.0% 

Per Person Per Trip 

Spending* ($) 1,383.4 1,459.7 1,482.4 1.6% 1,503.0 1.4% 

Length of Stay (days) 9.61 9.59 9.55 –0.4% 9.49 –0.6% 

66 

U.S. East 

U.S. EAST MMA (by Air) 2011 2012 2013p % Change 

2012–2013p 2014 Target % Change 2013p–2014T 

Visitor Expenditures* 

($ Millions) 3,108.2 3,434.2 3,566.6 3.9% 3,612.9 1.3% 

Visitor Days 17,178,727 17,852,103 17,821,304 –0.2% 17,786,143 –0.2% 

Arrivals 1,642,279 1,699,625 1,698,454 –0.1% 1,698,500 0.0% 

Per Person Per Day 

Spending* ($) 180.9 192.4 200.1 4.0% 203.1 1.5% 

Per Person Per Trip 

Spending* ($) 1,892.6 2,020.6 2,099.9 3.9% 2,127.1 1.3% 

Length of Stay (days) 10.46 10.50 10.49 –0.1% 10.47 –0.2% 

Canada 

CANADA MMA (by Air) 2011 2012 2013p % Change 

2012–2013p 2014 Target % Change 2013p–2014T 

Visitor Expenditures* 

($ Millions) 906.0 1,022.8 1,044.8 2.2% 1,047.5 0.3% 

Visitor Days 6,040,316 6,497,799 6,470,918 –0.4% 6,435,869 –0.5% 

Arrivals 477,564 499,144 509,565 2.1% 519,800 2.0% 

Per Person Per Day 

Spending* ($) 150.0 157.4 161.5 2.6% 162.8 0.8% 

Per Person Per Trip 

Spending* ($) 1,897.1 2,049.0 2,050.4 0.1% 2,015.2 –1.7% 

Length of Stay (days) 12.65 13.02 12.70 –2.5% 12.38 –2.5% 

* Excludes supplemental business spending 

Contact Information 

Hawai‘i Tourism Authority: 

Laci Goshi, Tourism Brand Manager 

laci@gohta.net 

Hawai‘i Visitors & Convention Bureau: 

Jay Talwar, Senior Vice President, Marketing 

Hawaii Visitors & Convention Bureau 

2270 Kalakaua Avenue, Suite 801 

Honolulu, Hawaii 96815 

jtalwar@hvcb.org 

Market Summary 

U.S. West 

• In 2013, total expenditures reached $4.77 billion at a 2.9 percent YOY increase. 

The average daily spending increased to $155 per person and total visitor arrivals increased YOY by 1.3 percent to 3,219,621. 

• For 2014 YTD, visitor expenditures are currently $743 million. The average 

daily spending increased to $158.60 per person and total visitor arrivals are at 

454,750. Average length of stay is off to a strong start at 10.3 days. 

• Airlift: In 2013, air seats increased YOY by 2.1 percent to 6,373,358 scheduled 

seats. 

• As for 2014, domestic seats are forecasted to increase with an estimate of 

6,574,021 compared to 6,373,358 in 2013 for U.S. West. Discontinued service 

from Santa Maria and reduced service from Anchorage, Bellingham, Boise, Eugene, Fresno, Phoenix Mesa, San Jose, Spokane and Stockton are offset by increased service from Denver, Los Angeles, Oakland, Portland, Salt Lake City, 

San Diego and Seattle. 

U.S. East 

• In 2013, total expenditures reached $3.57 billion at a 3.9 percent YOY increase. 

The average daily spending increased to $200 per person and total visitor arrivals slightly decreased YOY by –0.1 percent to 1,698,454. 

• For 2014 YTD, visitor expenditures are currently $714.7 million. The average 

daily spending increased to $209.60 per person and total visitor arrivals are at 

289,877. Average length of stay is targeted at 11.67 days with the 2014 YTD 

slightly exceeding it at 11.76. 

• Airlift: In 2013, air seats increased YOY by 7.8 percent to 832,797 scheduled 

seats. 

67 

• As for 2014, air seats are expected to slightly increase with an estimate of 

841,059 compared to 832,797 in 2013. Flights out of Washington D.C. have been 

reduced and there is also a reduction in seats from New York JFK and Chicago. 

These declines are offset by additional seats out of Dallas and Houston, a result 

of a shift toward larger aircrafts used for Hawai‘i flights. 

Canada 

• In 2013, total expenditures reached $1.04 billion at a 2.2 percent YOY increase. 

The average daily spending increased YOY by 2.6 percent to $161.50 per person. Total visitor arrivals increased YOY by 2.1 percent to 509,565. 

• For 2014 YTD, visitor expenditures are currently at $293.6 million. The average 

daily spending decreased to $154 per person and total visitor arrivals are at 

136,400. Average length of stay increased to 13.98 days compared to 13.55 YTD 

in 2013. 

• Airlift: In 2013, air seats increased YOY by 1.4 percent to 367,825 nonstop 

seats. 

• As for 2014, Canada is expected to grow to 386,517 scheduled air seats to Hawaii, a 5.1 percent increase compared to 2013. WestJet’s expanded service from 

Vancouver to Kona and Lihue from December 2013 has contributed to growth 

in the market. 

Market Conditions 

• Overall U.S. 

» Slow economic growth. 

» ‘‘Affordability’’ and ‘‘value’’ continue to play a large role in consumer willingness to travel. 

» While demand for travel to Hawai‘i remains strong among U.S. air leisure 

travelers, rising travel prices continue to play a factor with converting this 

demand into actual Hawai‘i vacations. 

» After the U.S. Consumer Confidence Index showed increases for December 

2013 and January 2014, it decreased to 78.1 in February. 

» Unemployment rate showing gradual improvement. 

» U.S. housing market showing slow improvement. 

» U.S. GDP increased at an annual rate of 2.4 percent in the fourth quarter of 

2013. 

» U.S. mainland continues to be Hawai‘i’s single largest air service market, accounting for approximately 66 percent of scheduled seats to the state. 

• Canada 

» Canadian outbound travel is expected to grow, but at a more modest pace 

than previous years. 

» Canadian consumer confidence showing gradual improvement. 

» Unemployment rate remains low. 

» A strong housing market, especially in the Vancouver target market. 

» Canada GDP increased at an annual rate of 0.7 percent in the fourth quarter 

of 2013. 

» A slightly unfavorable exchange rate. 

68 

Visitor Statistics 2008–2014 

U.S. West 

U.S. WEST MMA (by Air) 2008 2009 2010 2011 2012 2013p % Change 2012–2013p 2014 Target % Change 2013p–2014T 

Visitor Expenditures* ($ Millions) 3,897.3 3,468.2 3,913.3 4,142.8 4,640.1 4,772.8 2.9% 4,839.0 1.4% Visitor Days 26,649,336 26,027,984 27,966,613 28,768,587 30,471,505 30,733,731 0.9% 30,549,130 –0.6% Arrivals 2,769,229 2,718,818 2,924,430 2,994,731 3,178,824 3,219,621 1.3% 3,219,600 0.0% Per Person Per Day Spending* ($) 146.2 133.3 139.9 144.0 152.3 155.3 2.0% 158.4 2.0% Per Person Per Trip Spending* ($) 1,407.4 1,275.6 1,338.2 1,383.4 1,459.7 1,482.4 1.6% 1,503.0 1.4% Length of Stay (days) 9.62 9.57 9.56 9.61 9.59 9.55 –0.4% 9.49 –0.6% 

U.S. East 

U.S. EAST MMA (by Air) 2008 2009 2010 2011 2012 2013p % Change 2012–2013p 2014 Target % Change 2013p–2014T 

Visitor Expenditures* ($ Millions) 3,225.1 2,694.6 2,876.4 3,108.2 3,434.2 3,566.6 3.9% 3,612.9 1.3% Visitor Days 17,586,975 16,271,465 16,815,125 17,178,727 17,852,103 17,821,304 –0.2% 17,786,143 –0.2% Arrivals 1,683,114 1,561,468 1,610,421 1,642,279 1,699,625 1,698,454 –0.1% 1,698,500 0.0% Per Person Per Day Spending* ($) 183.4 165.6 171.1 180.9 192.4 200.1 4.0% 203.1 1.5% Per Person Per Trip Spending* ($) 1,916.1 1,725.7 1,786.1 1,892.6 2,020.6 2,099.9 3.9% 2,127.1 1.3% Length of Stay (days) 10.45 10.42 10.44 10.46 10.50 10.49 –0.1% 10.47 –0.2% 

Canada 

CANADA MMA (by Air) 2008 2009 2010 2011 2012 2013p % Change 2012–2013p 2014 Target % Change 2013p–2014T 

Visitor Expenditures* ($ Millions) 710.6 628.8 745.7 906.0 1,022.8 1,044.8 2.2% 1,047.5 0.3% Visitor Days 4,632,068 4,396,325 5,143,821 6,040,316 6,497,799 6,470,918 –0.4% 6,435,869 –0.5% Arrivals 359,580 346,583 405,040 477,564 499,144 509,565 2.1% 519,800 2.0% Per Person Per Day Spending* ($) 153.4 143.0 145.0 150.0 157.4 161.5 2.6% 162.8 0.8% Per Person Per Trip Spending* ($) 1,976.1 1,814.3 1,841.1 1,897.1 2,049.0 2,050.4 0.1% 2,015.2 –1.7% Length of Stay (days) 12.88 12.68 12.70 12.65 13.02 12.70 –2.5% 12.38 –2.5% 

* Excludes supplemental business spending 

69 

North America: Distribution by Island 

U.S. West 

U.S. WEST MMA (by Air) 2008 2009 2010 2011 2012 2013p % Change 2012–2013p 2014 Target % Change 2013p–2014T 

O’ahu 1,254,836 1,255,017 1,317,632 1,318,505 1,393,321 1,434,369 2.9% 1,357,756 –5.3% Maui 979,253 931,078 1,032,190 1,047,825 1,109,708 1,113,539 0.3% 1,139,777 2.4% Moloka’i 25,414 20,682 20,612 22,010 21,709 22,839 5.2% 22,423 –1.8% La ̄na’i 30,858 24,650 27,920 30,501 29,468 29,952 1.6% 30,752 2.7% Kaua’i 515,378 482,732 485,698 517,849 553,222 565,920 2.3% 562,910 –0.5% Hawai’i Island 526,192 506,052 527,689 547,724 574,246 564,267 –1.7% 639,721 13.4% 

U.S. East 

U.S. EAST MMA (by Air) 2008 2009 2010 2011 2012 2013p % Change 2012–2013p 2014 Target % Change 2013p–2014T 

O’ahu 1,029,778 960,985 968,056 976,305 1,015,673 1,011,752 –0.4% 976,566 –3.5% Maui 655,435 570,831 595,701 606,430 622,452 626,933 0.7% 630,804 0.6% Moloka’i 20,984 15,788 15,264 17,032 14,918 15,447 3.5% 15,204 –1.6% La ̄na’i 29,364 23,303 24,656 26,998 24,902 24,598 –1.2% 25,641 4.2% Kaua’i 351,478 306,976 313,675 320,096 338,756 339,095 0.1% 340,097 0.3% Hawai’i Island 402,908 352,734 353,065 366,155 380,022 383,917 1.0% 417,714 8.8% 

Canada 

CANADA MMA (by Air) 2008 2009 2010 2011 2012 2013p % Change 2012–2013p 2014 Target % Change 2013p–2014T 

O’ahu 195,034 168,911 195,472 223,283 209,380 213,986 2.2% 209,788 –2.0% Maui 179,139 170,754 197,722 237,434 255,602 259,426 1.5% 269,930 4.0% Moloka’i 6,735 3,751 3,349 4,276 3,927 3,931 0.1% 4,171 6.1% La ̄na’i 6,128 4,623 4,664 4,801 4,735 5,293 11.8% 5,081 –4.0% Kaua’i 51,356 44,638 54,627 64,128 66,205 68,249 3.1% 69,264 1.5% Hawai’i Island 73,060 67,122 75,137 87,703 96,274 96,677 0.4% 110,275 14.1% 

CALENDAR YEAR 1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER 

2014F 2013 %Chge 2014F 2013 %Chge 2014F 2013 %Chge 2014F 2013 %Chge 2014F 2013 %Chge 

US West 6,574,021 6,373,358 3.1% 1,575,711 1,587,388 –0.7% 1,644,521 1,596,995 3.0% 1,766,567 1,656,217 6.7% 1,587,222 1,532,758 3.6% US East 841,059 832,797 1.0% 205,317 202,894 1.2% 206,229 214,023 –3.6% 224,444 217,034 3.4% 205,069 198,846 3.1% Canada 386,517 367,825 5.1% 163,860 152,496 7.5% 82,282 75,494 9.0% 44,431 41,995 5.8% 95,944 97,840 –1.9% 

70 

North America: Group vs. FIT; Leisure vs. Business 

U.S. West 

U.S. WEST MMA (by Air) 2008 2009 2010 2011 2012 2013p % Change 

2012–2013p 

Group vs FIT 

Group tour 71,623 51,795 56,211 55,697 54,556 57,539 5.5% 

True Independent 2,132,943 2,097,624 2,243,921 2,313,576 2,517,281 2,590,586 2.9% 

Leisure vs business 

Pleasure (Net) 2,229,622 2,226,385 2,408,309 2,474,356 2,644,238 2,678,581 1.3% 

MCI (Net) 146,822 123,627 119,814 128,335 128,014 134,079 4.7% 

Convention/Conf. 90,514 82,138 76,839 76,799 78,401 81,185 3.6% 

Corp. Meetings 36,236 26,856 27,890 33,760 32,710 34,550 5.6% 

Incentive 24,695 18,309 18,863 22,302 21,071 23,378 10.9% 

U.S. East 

U.S. EAST MMA (by Air) 2008 2009 2010 2011 2012 2013p % Change 

2012–2013p 

Group vs FIT 

Group tour 105,006 72,499 69,661 79,006 79,493 79,079 090.5% 

True Independent 1,207,278 1,138,678 1,157,985 1,185,636 1,260,957 1,619,375 28.4% 

Leisure vs business 

Pleasure (Net) 1,290,209 1,209,145 1,252,562 1,271,468 1,332,544 1,342,467 0.7% 

MCI (Net) 162,112 139,005 122,614 138,586 136,944 139,003 1.5% 

Convention/Conf. 103,221 97,194 77,710 88,033 84,890 84,240 –0.8% 

Corp. Meetings 30,293 21,769 22,635 26,204 28,306 27,310 –3.5% 

Incentive 34,811 24,960 27,019 30,235 29,734 33,253 11.8% 

Canada 

CANADA MMA (by Air) 2008 2009 2010 2011 2012 2013p % Change 

2012–2013p 

Group vs FIT 

Group tour 14,920 8,978 10,429 16,195 11,296 9,512 –15.8% 

True Independent 254,534 250,577 287,466 346,733 371,840 389,146 4.7% 

Leisure vs business 

Pleasure (Net) 328,792 318,894 374,413 442,851 465,799 478,226 2.7% 

MCI (Net) 16,637 17,109 15,934 20,208 18,745 15,113 -19.4% 

Convention/Conf. 12,462 12,329 11,712 15,087 13,098 10,725 –18.1% 

Corp. Meetings 2,073 2,858 2,003 2,650 2,318 1,824 –21.3% 

Incentive 2,484 2,790 2,830 3,232 4,009 3,019 –24.7% 

North America: First Timers vs. Repeat Visitors 

U.S. West 

U.S. WEST MMA (by Air) 2008 2009 2010 2011 2012 2013p % Change 

2012–2013p 

1st timers (%) 19.6 19.1 19.1 18.6 18.5 18.6 0.1 

Repeaters (%) 80.4 80.9 80.9 81.4 81.5 81.4 –0.1 

U.S. East 

U.S. EAST MMA (by Air) 2008 2009 2010 2011 2012 2013p % Change 

2012–2013p 

1st timers (%) 43.9 43.0 42.3 41.6 41.8 42.1 0.3 

Repeaters (%) 56.1 57.0 57.7 58.4 58.2 57.9 –0.3 

Canada 

CANADA MMA (by Air) 2008 2009 2010 2011 2012 2013p % Change 

2012–2013p 

1st timers (%) 38.7 37.5 36.9 36.8 35.6 36.3 0.7 

Repeaters (%) 61.3 62.5 63.1 63.2 64.4 63.7 –0.7 

71 

Cost per Arrival/Return on Investment/Tax Revenue 

U.S. West 

U.S. WEST MMA (by Air) 2010 2011 2012 2013p 

HTA Expenses ($ Millions) 18.775 19.758 15.115 13.293 

State tax revenue generated* ($ Millions) 426.4 451.4 505.5 520.0 

Return on Investment (Tax Revenue) 22.71 22.84 33.45 39.12 

Cost Per Arrival 6.42 6.60 4.75 4.13 

U.S. East 

U.S. EAST MMA (by Air) 2010 2011 2012 2013p 

HTA Expenses ($ Millions) 12.10 13.48 15.09 15.05 

State tax revenue generated* ($ Millions) 313.4 338.6 374.2 388.6 

Return on Investment 25.90 25.12 24.80 25.82 

Cost Per Arrival 7.51 8.21 8.88 8.86 

Canada 

CANADA MMA (by Air) 2010 2011 2012 2013p 

HTA Expenses ($ Millions) 1.10 1.09 1.57 1.42 

State tax revenue generated* ($ Millions) 81.2 98.7 111.4 113.8 

Return on Investment 74.06 90.31 71.02 80.45 

Cost Per Arrival 2.71 2.29 3.14 2.78 

*State government tax revenue generated (direct, indirect, and induced) 

JAPAN FACT SHEET

Japan Overview 

Japan is Hawai‘i’s largest international market and plans are underway to build 

on our momentum. In 2014, the HTA set targets aimed at reaching two million annual visitor arrivals by 2016. These increases were based on planned aircraft upgrades, new carriers entering the market, and route expansion. HTJ continues to 

display increased collaboration with both travels partners in Japan and Hawai‘i, 

thus enabling the Hawaiian Islands to remain well positioned as a preferred vacation destination for the Japanese traveler. 

2013 Quick Facts 

Visitor Expenditures: $2,527.1 million.

Primary Purpose of Stay: Pleasure (1,266,324) vs. MCI (87,432).

Average Length of Stay: 6.02 days.

First Time Visitors: 40.3%.

Repeat Visitors: 59.7%.

Average Number of Trips: 3.93.

JAPAN MMA (by Air) 2011 2012 2013 % Change 

2012–2013 2014 Target % Change 2013–2014 

Visitor Expenditures* 

($ Millions) 2,164.0 2,734.9 2,527.1 –7.6% 2,742.3 8.5% 

Visitor Days 7,484,700 8,819,493 9,014,563 2.2% 9,590,400 6.4% 

Arrivals 1,241,805 1,465,654 1,523,302 3.9% 1,620,000 6.3% 

Per Person Per Day 

Spending* ($) 289.1 310.1 280.3 –9.6% 285.9 2.0% 

Per Person Per Trip 

Spending* ($) 1,742.6 1,866.0 1,659.0 –11.1% 1,692.8 2.0% 

Length of Stay (days) 6.03 6.02 5.92 –1.7% 5.92 0.0% 

* Excludes supplemental business spending 

Contact Information 

Hawai‘i Tourism Authority: 

Miki Wakai, Brand Manager 

Miki@gohta.net 

Hawai‘i Tourism Japan: 

Eric Takahata, Managing Director 

etakahata@htjapan.jp 

72 

Market Summary 

• Arrivals from Japan rose 3.9 percent to 1,523,302 visitors in 2013. 

• 81 percent of total visitors stayed only on O‘ahu, 2 percent visited Kaua‘i, 5.5 

percent visited Maui county and 13.6 percent visited Hawai‘i island. Total of 

neighbor island visits increased by 6.5 percent, compared to 2012. 

• 83 percent of all passengers visited Hawaii for pleasure and 5.7 percent visited 

Hawaii for MCI. 

• 74 percent traveled on a package tour, which is 5.3 percent higher compared 

to 2013. 

• 23 percent of the total visitors were Net True Independent traveler, which is 

similar to 2013. 

• 40.3 percent of Japanese visitors were first timers, 1.6 percent lower than 2012. 

• 59.7 percent of the visitors were repeaters and the average number of trips to 

the islands was 3.93 times. 

• 88 percent of visitors stayed in a hotel, 8.4 percent stayed in Condo and 3.4 percent stayed in a timeshare. 

• There were 2,027,820 air seats from Japan in 2013, an 11.3 percent increase 

from 2012. 

• Average growth of the outbound travel from Japan is 4.2 percent for the last 

10 years. 

• JAL provides 102 less seats daily from 4/1 to 9/30 due to aircraft change. 

• China Airline provides 82 less seats daily from 5/7 to 6/29. 

• Korean Airline provides 89 more seats daily in 2014. 

• Hawaiian Fukuoka—Honolulu route stops its service on 6/1. 

Market Conditions 

• In an effort to spur the Japanese economy, Prime Minister Abe is adjusting the 

country’s financial plans through ‘‘Abenomics.’’ The Japanese government approved a record spending budget for Fiscal Year 2014 to 2015, amounting to 

$920 billion USD (95.9 trillion yen) aimed at lowering their public debt and further growing the economy. 

• Consumption tax will increase from 5 percent to 8 percent in April 2014. 

• JPY is trading at just above 100 yen to a dollar. 

• GDP growth for Japan in 2013 was 2.6 percent. 

• 2013 Unemployment rate in Japan remained steady at 4.0 percent. 

• Private consumption has been on the rise with increases in consumer confidence. These effects show that consumers are willing to spend, but with the 

devaluation of the yen and tax increase, Hawai‘i will become a more expensive 

destination for Japanese visitors. 

73 

Visitor Statistics 2008–2014 

JAPAN MMA (by Air) 2008 2009 2010 2011 2012 2013p % Change 2012–2013p 2014 Target Change 2013p 

Visitor Expenditures* ($ Millions) 1,944.5 1,826.3 1,899.6 2,164.0 2,734.9 2,527.1 –7.6% 2,742.3 8.5% Visitor Days 6,744,053 6,806,138 7,276,211 7,484,700 8,819,493 9,014,563 2.2% 9,590,400 6.4% Arrivals 1,175,199 1,168,080 1,239,307 1,241,805 1,465,654 1,523,302 3.9% 1,620,000 6.3% Per Person Per Day Spending* ($) 288.3 268.3 261.1 289.1 310.1 280.3 –9.6% 285.9 2.0% Per Person Per Trip Spending* ($) 1,654.6 1,563.5 1,532.8 1,742.6 1,866.0 1,659.0 –11.1% 1,692.8 2.0% Length of Stay (days) 5.74 5.83 5.87 6.03 6.02 5.92 –1.7% 5.92 0.0% 

* Excludes supplemental business spending 

Japan: Distribution by Island 

JAPAN MMA (by Air) 2008 2009 2010 2011 2012 2013p % Change 2012–2013p 2014 Target Change 2013p 

O’ahu 1,127,441 1,132,226 1,185,368 1,193,378 1,409,721 1,462,073 3.7% 1,499,173 2.5% Maui County 67,266 57,103 62,061 63,683 69,719 81,141 16.4% Kaua’i 26,166 20,892 21,356 23,571 27,907 29,407 5.4% 30,989 5.4% Hawai’i Island 174,701 164,745 187,236 165,250 203,009 198,456 –2.2% 246,806 

CALENDAR YEAR 1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER 

2014F 2013 %Chge 2014F 2013 %Chge 2014F 2013 %Chge 2014F 2013 %Chge 2014F 2013 %Chge 

Japan 2,025,638 2,029,288 –0.2% 516,820 471,466 9.6% 509,223 481,906 5.7% 502,894 547,568 –8.2% 496,701 528,348 –6.0% Fukuoka 126,609 175,775 –28.0% 43,650 43,020 1.5% 44,135 43,515 1.4% 19,412 44,620 –56.5% 19,412 44,620 –56.5% Nagoya 221,715 192,787 15.0% 55,350 40,320 37.3% 55,965 40,826 37.1% 55,200 54,831 0.7% 55,200 56,810 –2.8% Osaka 361,884 348,878 3.7% 87,840 79,942 9.9% 88,816 81,900 8.4% 95,436 95,328 0.1% 89,792 91,708 –2.1% Sapporo 40,663 40,460 0.5% 10,101 10,140 –0.4% 10,101 10,118 –0.2% 10,101 10,101 0.0% 10,360 10,101 2.6% Tokyo-HND 328,877 328,008 0.3% 81,404 81,252 0.2% 81,627 80,236 1.7% 83,536 83,536 0.0% 82,310 82,984 –0.8% Tokyo-NRT 945,890 943,380 0.3% 238,475 216,792 10.0% 228,579 225,311 1.5% 239,209 259,152 –7.7% 239,627 242,125 –1.0% 

74 

Japan: Group vs. FIT; Leisure vs. Business 

JAPAN MMA (by Air) 2008 2009 2010 2011 2012 2013p %Change 

2012–2013p 

Group vs FIT 

Group tour 457,113 397,244 408,361 333,929 396,031 403,773 2.0% 

True Independent 183,189 222,885 267,587 298,886 350,172 350,353 0.1% 

Leisure vs business 

Pleasure (Net) 1,048,593 1,074,178 1,067,488 1,074,578 1,268,715 1,266,324 –0.2% 

MCI (Net) 51,626 35,576 47,613 43,305 52,386 87,432 66.9% 

Convention/Conf. 10,179 14,803 17,634 9,593 18,173 10,813 –40.5% 

Corp. Meetings 5,817 4,688 8,756 5,875 8,087 2,181 –73.0% 

Incentive 36,937 16,529 21,954 29,173 27,068 75,517 179.0% 

Japan: First Timers vs. Repeat Visitors 

JAPAN MMA (by Air) 2008 2009 2010 2011 2012 2013p 

percent 

Change 

2012–2013p 

1st timers ( percent) 42.3 42.1 41.5 41.1 41.9 40.3 –1.6 

Repeaters ( percent) 57.7 57.9 58.5 58.9 58.1 59.7 1.6 

Cost per Arrival/Return on Investment/Tax Revenue 

JAPAN MMA (by Air) 2008 2009 2010 2011 2012 2013p 

HTA Expenses ($ Millions) 8.89 10.14 7.22 6.53 8.47 7.62 

State tax revenue generated* 

($ Millions) 173.1 185.6 207.0 235.8 298.0 275.3 

Return on Investment 19.47 18.29 28.67 36.11 35.18 36.13 

Cost Per Arrival 7.56 8.68 5.83 5.26 5.78 5.00 

* State government tax revenue generated (direct, indirect, and induced) 

OCEANIA FACT SHEET

Oceania Overview 

The HTA, through Hawai‘i Tourism Oceania (HTO), targets visitors from the 

countries of Australia and New Zealand which have experienced steady growth in 

outbound travel to Hawai‘i over recent years. Since 2004, the HTA has contracted 

with the Walshe Group Pty Ltd, to provide marketing services in Oceania. In September 2011, the HTA announced that the Walshe Group has been selected for a 

new multi-year contract starting Jan. 1, 2012 with the first year valued at $1.1 million. HTO moved into 2013 at the same base funding level and in 2014 received 

$1.34 million, but with higher targets. 

2013 Quick Facts 

Visitor Expenditures: $840.8 million.

Primary Purpose of Stay: Pleasure (328,728) vs. MCI (7,912).

Average Length of Stay: 9.48 days.

First Time Visitors: 54.1 percent.

Repeat Visitors: 45.9 percent.

Average Number of Trips: 2.12.

OCEANIA MMA (by Air) 2010 2011 2012 2013p % Change 

2012–2013p 2014 Target 

% Change 

2013p– 

2014T 

Visitor Expenditures* 

($ Millions) 328.2 477.4 639.8 840.8 31.4% 952.1 13.2% 

Visitor Days 1,586,379 2,092,356 2,606,362 3,348,374 28.5% 3,717,350 11.0% 

Arrivals 161,060 209,976 273,039 353,065 29.3% 391,300 10.8% 

Per Person Per Day 

Spending* ($) 206.9 228.1 245.5 251.1 2.3% 256.1 2.0% 

Per Person Per Trip 

Spending* ($) 2,037.9 2,273.4 2,343.4 2,381.4 1.6% 2,433.2 2.2% 

Length of Stay (days) 9.85 9.96 9.55 9.48 –0.7% 9.50 0.2% 

* Excludes supplemental business spending 

75 

Contact Information 

Hawai‘i Tourism Authority: 

Mike Story, Tourism Brand Manager 

story@gohta.net 

Hawai‘i Tourism Oceania: 

Australia: Ashlee Galea, Country Manager 

agalea@hawaiitourism.com.au 

New Zealand: Darragh Walshe, Country Manager 

dwalshe@hawaiitourism.com.au 

Market Summary 

• In 2013, Oceania KPI’s continued to grow YOY (29.3 percent) in total arrivals, 

daily spending was $251.1 per person; up 2.3 percent compared to last year. 

Visitor expenditures by Oceania visitors reached $840.8 million. The increased 

arrivals can partially be attributed to a strong Australia dollar and additional 

airlift out of both Australia and New Zealand. 

• Airlift grew in 2013 and continues in 2014, but less aggressively. In 2013, the 

majority of the growth in air seats is attributed to Hawaiian Airlines new service from Brisbane to Honolulu, Auckland to Honolulu, Jetstar’s restarting Melbourne to Honolulu service and Air New Zealand increasing Auckland to Honolulu service. New service from Jetstar out of the Brisbane market is expected 

to start in December of 2014. 

• An additional carrier which also supports the market is Qantas. 

• Hawaiian Airlines new routes and connectivity throughout the State is contributing to greater neighbor island awareness in Oceania. However with the increase in visitor arrivals Hawai‘i is hosting more first-time visitors and these 

visitors generally travel only to O‘ahu on their first trip. 

• The increase in the price to travel to Hawai‘i will affect the growth of Oceania 

KPI’s in 2014. 

Market Conditions 

• Record low interest rates are having a positive effect on the economy. The rates 

have been cut to 2.5 percent. Reserve Bank of Australia 

• Australia’s Reserve Bank expects economic growth at between 2.25 percent and 

3.25 percent in 2014. Reserve Bank of Australia 

• The recent rebound in the Australian dollar, combined with expectations of 

tight Federal and state government budgets and slow wage growth, leaves the 

Reserve Bank expecting an improvement in consumer and business confidence. 

Reserve Bank of Australia 

• Unemployment is anticipated to continue to increase gradually for the next year 

or so as the economy grows at a below-trend pace. Current unemployment rate 

is 5.7 percent. Reserve Bank of Australia 

• The sustained good value of the Australian dollar continues to provide favorable 

conditions for Australian overseas travel in the near term. Reflecting this, the 

outlook remains positive with outbound departures forecast to increase YOY by 

4.9 percent to 8.8 million in 2013–14. Tourism Australia 

76 

Visitor Statistics 2008–2014 

OCEANIA MMA (by Air) 2008 2009 2010 2011 2012 2013p % Change 2012–2013p 2014 Target % Change 2013p–2014T 

Visitor Expenditures* ($ Millions) 290.4 256.2 328.2 477.4 639.8 840.8 31.4% 952.1 13.2% Visitor Days 1,343,771 1,262,591 1,586,379 2,092,356 2,606,362 3,348,374 28.5% 3,717,350 11.0% Arrivals 155,480 136,717 161,060 209,976 273,039 353,065 29.3% 391,300 10.8% Per Person Per Day Spending* ($) 216.1 202.9 206.9 228.1 245.5 251.1 2.3% 256.1 2.0% Per Person Per Trip Spending* ($) 1,867.8 1,873.7 2,037.9 2,273.4 2,343.4 2,381.4 1.6% 2,433.2 2.2% Length of Stay (days) 8.64 9.24 9.85 9.96 9.55 9.48 –0.7% 9.50 0.2% 

* Excludes supplemental business spending 

OCEANIA MMA (by Air) 2008 2009 2010 2011 2012 2013p 2014 Target 

O’ahu 146,118 128,127 153,554 202,075 260,317 340,413 358,942 Maui 31,586 26,599 32,597 45,651 50,625 72,212 73,575 Moloka’i 3,022 1,380 2,542 3,184 3,742 4,652 5,469 La ̄na’i 2,907 1,528 2,167 3,508 4,240 5,513 6,261 Kaua’i 14,605 12,142 14,789 19,304 22,807 31,197 32,837 Hawai’i Island 25,674 23,434 27,642 37,832 45,749 58,074 72,114 

CALENDAR YEAR 1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER 

2014F 2013 %Chge 2014F 2013 %Chge 2014F 2013 %Chge 2014F 2013 %Chge 2014F 2013 %Chge 

Oceania 420,668 416,863 0.9% 98,760 90,863 8.7% 105,602 109,798 –3.8% 110,331 108,835 1.4% 105,975 107,367 –1.3% Auckland 88,452 77,620 14.0% 20,766 11,244 84.7% 21,294 19,842 7.3% 24,864 23,938 3.9% 21,528 22,596 –4.7% Brisbane 50,764 47,727 6.4% 10,101 12,480 –19.1% 13,468 12,455 8.1% 13,727 11,655 17.8% 13,468 11,137 20.9% Melbourne 40,602 35,451 14.5% 9,696 8,181 18.5% 10,302 9,393 9.7% 11,817 8,484 39.3% 8,787 9,393 –6.5% Sydney 240,850 256,065 –5.9% 58,197 58,958 –1.3% 60,538 68,108 –11.1% 59,923 64,758 –7.5% 62,192 64,241 –3.2% 

77 

Oceania: Group vs. FIT; Leisure vs. Business 

OCEANIA MMA (by Air) 2008 2009 2010 2011 2012 2013p % Change 

2012–2013p 

Group vs FIT 

Group tour 5,906 5,291 7,178 8,411 5,840 10,046 72.0% 

True Independent 79,406 72,814 78,572 103,835 139,707 180,736 29.4% 

Leisure vs business 

Pleasure (Net) 139,521 122,454 145,009 192,351 256,340 328,728 28.2% 

MCI (Net) 5,769 5,502 6,827 5,669 3,879 7,912 104.0% 

Convention/Conf. 4,385 4,995 6,192 3,936 3,202 6,414 100.3% 

Corp. Meetings 333 331 338 455 197 535 171.6% 

Incentive 1,222 241 537 1,360 534 996 86.5%% 

Oceania: First Timers vs. Repeat Visitors 

OCEANIA MMA (by Air) 2008 2009 2010 2011 2012 2013p % Change 

2012–2013p 

1st timers (%) 52.9 55.5 54.3 56.6 56.1 54.1 (1.9) 

Repeaters (%) 47.1 44.5 45.7 43.4 43.9 45.9 2.0 

Cost per Arrival/Return on Investment/Tax Revenue 

OCEANIA MMA (by Air) 2008 2009 2010 2011 2012 2013p 

HTA Expenses ($ Millions) 1.16 1.32 1.06 1.56 1.36 1.41 

State tax revenue generated* ($ Millions) 25.8 26.0 35.8 52.0 69.7 91.6 

Return on Investment 22.32 19.66 33.74 33.34 51.26 64.97 

Cost Per Arrival 7.45 9.68 6.58 7.43 4.98 3.99 

* State government tax revenue generated (direct, indirect, and induced) 

CHINA FACT SHEET

China Overview 

The HTA, through Hawai‘i Tourism China (HTC), implements targeted marketing 

programs to increase awareness and drive travel demand to Hawai‘i. In January 

2014, the HTA contracted the Travel Link Marketing (TLM) to provide marketing 

representation services in Mainland China. TLM was established in 2005 with offices in Beijing, Shanghai, Guangzhou and Chengdu. Together with TLM, the new 

HTC, HTA aims for accelerated growth compared to previous years with increased 

air seat capacity out of China. 

2013 Quick Facts 

Visitor Expenditures: $328.6 million.

Primary Purpose of Stay: Pleasure (115,640) vs. MCI (10,397).

Average Length of Stay: 6.24 days.

First Time Visitors: 85.2%.

Repeat Visitors: 14.8%.

China MMA (by Air) 2010 2011 2012 2013p % Change 

2012–2013p 2014 Target 

% Change 

2013p– 

2014T 

Visitor Expenditures* 

($ Millions) 127.7 178.2 277.1 328.6 18.6% 452.1 37.6% 

Visitor Days 364,543 479,447 699,703 827,129 18.2% 1,135,607 37.3% 

Arrivals 61,455 81,738 116,866 132,634 13.5% 182,100 37.3% 

Per Person Per Day 

Spending* ($) 350.3 371.7 396.0 397.3 0.3% 398.1 0.2% 

Per Person Per Trip 

Spending* ($) 2,077.9 2,180.1 2,370.9 2,477.5 4.5% 2,482.4 0.2% 

Length of Stay (days) 5.93 5.87 5.99 6.24 4.1% 6.24 0.0% 

Contact Information 

Hawai‘i Tourism Authority: Jadie Goo 

Tourism Brand Manager 

jadie@gohta.net 

Hawai‘i Tourism China: Brenda He 

General Manager 

hemiao@tlmchina.com 

78 

Market Summary 

• 2013 arrivals from China rose 13.5 percent over 2012 to 132,634 visitors. 2014 

YTD (Jan-Feb) arrivals increased 4.8 percent over the same period of last year. 

• In 2013, most (95 percent) visited O‘ahu, 16.6 percent visited Hawai‘i Island, 

15.3 percent went to Maui and 2.9 percent went to Kaua‘i. Number of visitors 

to Kaua‘i remains the lowest, mainly due to a lack of Chinese speaking receptive tour operators and tour guides on that island. 2014 YTD (Jan-Feb) data 

showed a 29.6 percent growth YOY in arrivals to the neighbor islands. 

• In 2013, Chinese visitors spent an average 6.2 days in the islands, slightly 

longer (+4.2 percent) than the same period in 2012. 

• Average daily spending by Chinese visitors in 2013 was $397.3, the highest out 

of all visitors to Hawai‘i. Shopping was their number one expenditure, followed 

by lodging, food, and entertainment. 

• Majority of Chinese visitors to Hawai‘i are first timers. In 2013, 85.2 percent 

visited Hawai‘i for the first time and 51 percent came on group tours. As the 

market continues to develop and mature, repeat visitations and FITs will increase gradually. 

• Airlift: In 2013, the total number of direct service air seats from China was 

42,903. In 2014, with an additional connecting Beijing and Honolulu and additional frequencies out of Shanghai, the total air seats jumped to 139,473, a 225 

percent increase. Currently, China Eastern flies five weekly flights between 

Shanghai and Honolulu. Air China flies three times a week between Beijing and 

Honolulu. Hawaiian Airlines will launch direct Beijing-Honolulu services in 

April 2014. 

Market Conditions 

• Slowdown in economic/GDP growth; relatively strong compared to other economies 

• Currency exchange rate in favor of Chinese visitors 

• Growing middle class and experienced and affluent travelers 

• Continued improvement in U.S. visa processing; the U.S. Consulate in Wuhan 

will open its visa service to the public in 2015 processing 200,000 (est.) visa applications per year. 

• Approximately 1.858 million Chinese visited the U.S. in 2013, a 26 percent increase from 2012. Total arrivals from China in 2014 are expected to increase 

by 24 percent to 2.304 million according to the U.S. Department of Commerce. 

• Brand USA predicted China will become one of the top tourist source markets 

for the United States in 2018 when the number of visiting Chinese hits 4.7 million. Chinese travelers spent US$8.8 billion last year in America, making America the top spending destination for Chinese tourists. 

• New regulations and caps on Chinese government spending continue to impact 

oversea travel by government and state owned businesses. 

• Since the new China tourism law took effect on October 1, 2013, prices of group 

tour packages have increased as the law forbids the levying of extra costs during tours. 

• Increased competition from other destinations 

79 

Visitor Statistics 2008–2014 

China MMA (by Air) 2008 2009 2010 2011 2012 2013p % Change 2012–2013p 2014 Target % Change 2013p–2014T 

Visitor Expenditures* ($ Millions) 93.3 83.8 127.7 178.2 277.1 328.6 18.6% 452.1 37.6% Visitor Days 287,945 293,538 364,543 479,447 699,703 827,129 18.2% 1,135,607 37.3% Arrivals 54,235 41,924 61,455 81,738 116,866 132,634 13.5% 182,100 37.3% Per Person Per Day Spending* ($) 324.0 285.6 350.3 371.7 396.0 397.3 0.3% 398.1 0.2% Per Person Per Trip Spending* ($) 1,720.0 1,999.8 2,077.9 2,180.1 2,370.9 2,477.5 4.5% 2,482.4 0.2% Length of Stay (days) 5.31 7.00 5.93 5.87 5.99 6.24 4.1% 6.24 0.0% 

** Excludes supplemental business spending 

China: Distribution by Island 

China MMA (by Air) 2008 2009 2010 2011 2012 2013p % Change 2012–2013p 2014 Target % Change 2013p–2014T 

O’ahu 49,778 38,734 58,057 76,063 109,729 125,829 14.7% 164,505 30.7% Maui 7,601 4,802 6,683 10,564 15,343 20,297 32.3% 24,244 19.4% Moloka’i 1,356 405 579 934 1,560 1,108 –29.0% 2,478 123.7% La ̄na’i 862 358 464 1,090 641 770 20.1% 1,029 33.6% Kaua’i 2,360 1,391 2,026 2,868 3,828 3,803 –0.7% 5,992 57.6% Hawai’i Island 8,328 6,191 8,655 12,115 17,929 21,983 22.6% 30,728 39.8% 

2014Q1 2013Q1 %Chge 2014Q2 2013Q2 %Chge 2014Q3 2013Q3 %Chge 2014Q4 2013Q4 %Chge CY 2014 CY 2013 %Chge 

China 25,575 11,086 130.7% 35,811 9,905 261.5% 44,170 10,560 318.3% 33,917 11,352 198.8% 139,473 42,903 225.1% 

80 

China: Group vs. FIT; Leisure vs. Business 

China MMA (by Air) 2008 2009 2010 2011 2012 2013p % Change 

2012–2013p 

Group vs FIT 

Group tour 37,790 25,644 37,807 48,339 68,613 67,402 –1.8% 

True Independent 9,040 9,045 12,964 15,364 22,863 33,237 45.4% 

Leisure vs business 

Pleasure (Net) 35,395 30,734 48,812 61,592 99,916 115,640 15.7% 

MCI (Net) 7,235 5,410 5,879 11,242 8,709 10,397 19.4% 

Convention/Conf. 2,307 2,518 2,808 4,558 3,064 4,003 30.6% 

Corp. Meetings 1,998 910 1,142 3,798 1,223 2,223 81.8% 

Incentive 2,962 2,038 2,073 3,379 4,458 4,675 4.9% 

China: First Timers vs. Repeat Visitors 

China MMA (by Air) 2008 2009 2010 2011 2012 2013p % Change 

2012–2013p 

1st timers (%) 83.7 83.9 83.8 83.9 86.3 85.2 –1.1 

Repeaters (%) 16.3 16.1 16.2 16.1 13.7 14.8 1.1 

Tax Revenue 

China MMA (by Air) 2008 2009 2010 2011 2012 2013p 

State tax revenue generated* ($ Millions) 8.3 8.5 13.9 19.4 30.2 35.8 

* State government tax revenue generated (direct, indirect, and induced) 

KOREA FACT SHEET

Korea Overview 

The HTA, through Hawai‘i Tourism Korea (HTK), implements targeted marketing 

programs to increase awareness and drive travel demand to Hawai‘i. From 2004 to 

2011, the HTA has contracted the Aviareps Marketing Garden Ltd. to provide marketing services in Other Asia that covers Korea, China, Taiwan, Hong Kong, Philippines, and Singapore. In September 2011, the HTA announced that the Aviareps 

Marketing Garden Ltd. had been selected for another new two-year contract from 

January 1, 2012 through December 31, 2013. Aviareps Marketing Garden Ltd. has 

been extended to provide marketing services in Korea only through December 31, 

2014. 

2013 Quick Facts 

Visitor Expenditures: $314.6 million 

Primary Purpose of Stay: Pleasure (156,481) vs. MCI (8,017).

Average Length of Stay: 7.03 days.

First Time Visitors: 82.2%.

Repeat Visitors: 17.8%.

Avg. Number of Trips: 1.49.

Korea MMA (by Air) 2011 2012 2013p % Change 

2012–2013p 2014 Target 

% Change 

2013p– 

2014T 

Visitor Expenditures* 

($ Millions) 194.0 282.4 314.6 11.4% 350.3 11.3% 

Visitor Days 813,989 1,078,814 1,205,501 11.7% 1,335,494 10.8% 

Arrivals 112,567 153,338 171,506 11.8% 190,000 10.8% 

Per Person Per Day 

Spending* ($) 238.3 261.8 261.0 –0.3% 262.3 0.5% 

Per Person Per Trip 

Spending* ($) 1,723.0 1,841.9 1,834.3 –0.4% 1,843.4 0.5% 

Length of Stay (days) 7.23 7.04 7.03 –0.2% 7.03 0.0% 

* Excludes supplemental business spending 

T: Targets 

p: Preliminary 

Contact Information 

Hawai‘i Tourism Authority: Grace Lee, Tourism Brand Manager 

grace@gohta.net 

Hawai‘i Tourism Korea: Emily Kim, Marketing Director 

ekim@aviareps.com 

81 

Market Summary 

• In 2013, Korean arrivals rose 11.8 percent year to date, as compared to the 

same period in 2012, to 171,506 visitors. However, this was a decrease of 10.5 

percent below our targets of 191,671 visitors for year-end 2013. 

• In 2013, 82.2 percent were first time visitors similar to 85.3 percent a year ago. 

• Most Korean visitors went to O‘ahu (98 percent), while 25 percent went to 

Maui, 8.9 percent went to Hawai‘i Island and 2.9 percent went to Kaua‘i. 

• One out of three Korean visitors (37.1 percent) were true independent travelers. 

• Hotels accommodated 92 percent of the Korean visitors, a few stayed in condominium properties (5.3 percent), with friends or relatives (3.0 percent) and in 

bed and breakfast properties (0.7 percent). 

• In 2013, there were 379,810 airseats from Seoul, which is similar as compared 

to 2012, which had a total of 379,089 airseats. In 2014, there will be a projected 

decrease of 7.7 percent to 350,583 airseats. This is mainly due to Hawaiian Airlines reducing their daily flight to 5 times a week. 

• Hawai‘i has gained huge attention in Korea as the leading long haul destination 

for honeymoons. 

» The number of Korean honeymooners accounted for 39.3 percent of total visitors from Korea in 2013. 

Market Conditions 

• Over 24 percent of Korea’s entire population of 50 million travels overseas each 

year. Total outbound travel in 2013 increased 8.1 percent over 2012 reaching 

14.8 million, surpassing the all-time record high of 13.7 million set in 2012. 

• According to the Korea Tourism Organization, the number of Korean outbound 

travelers in January 2014 was calculated at 1,468,903, 3 percent higher than 

the number of outbound travelers in January 2013. 

• Number of Korean visitors to Hawai‘i is projected to continually increase, anticipating strength among the family and FIT segments. 

• With rising interest in healthy lifestyles and a higher quality of life—individual 

wellness and healthy lifestyle have become popular themes; luxury travel products with well-being themes, such as spas and golf holidays are becoming increasingly popular among high-end consumers. 

• Plans to affect origination point expansion from the Busan/Youngnam Region 

in 2014–2015. 

• Emergence of LLC’s offering attractive prices to other Asia countries will be a 

challenge. 

• Major purposes of travel: Pleasure (52 percent), Honeymoon (39 percent), Business (4.6 percent), Other (4.4 percent). 

Travel Trends 

• May and September used to be the most popular months for honeymoons; however it is now more distributed throughout the year. According to the current 

survey conducted by Korea Gallup, 16 percent of the participants said they got 

married in December while only 4 percent answered September. Since wedding 

day and honeymoon expenses are much higher during the traditional wedding 

season, couples are getting married during non-traditional times. 

» October and November 2014 are leap months in Korea, which are normally 

‘‘bad luck’’ periods to get married. There will be less honeymoons during this 

time frame. 

• Traditionally, overseas travel are soft during the Winter Olympics and World 

Cup seasons. 

82 

Visitor Statistics 2008–2014 

Korea MMA (by Air) 2008 2009 2010 2011 2012 2013p % Change 2012–2013p 2014 Target % Change 2013p–2014T 

Visitor Expenditures* ($ Millions) 79.4 78.7 145.8 194.0 282.4 314.6 11.4% 350.3 11.3% Visitor Days 348,244 405,762 654,025 813,989 1,078,814 1,205,501 11.7% 1,335,494 10.8% Arrivals 38,110 51,353 81,758 112,567 153,338 171,506 11.8% 190,000 10.8% Per Person Per Day Spending* ($) 227.9 194.0 222.9 238.3 261.8 261.0 –0.3% 262.3 0.5% Per Person Per Trip Spending* ($) 2,082.1 1,532.6 1,783.1 1,723.0 1,841.9 1,834.3 –0.4% 1,843.4 0.5% Length of Stay (days) 9.14 7.90 8.00 7.23 7.04 7.03 –0.2% 7.03 0.0% 

*Excludes supplemental business spending T: Targets p: Preliminary 

Korea: Distribution by Island 

Korea MMA (by Air) 2008 2009 2010 2011 2012 2013p 2014 Target % Change 2013p–2014T 

O’ahu 34,883 46,731 74,973 104,655 147,039 167,552 174,491 4.1% Maui County 10,764 14,208 22,531 34,288 43,611 44,064 55,127 25.1% Maui 10,670 14,081 22,169 33,880 43,413 43,690 54,301 24.3% Moloka’i 169 461 506 484 363 779 456 –41.5% La ̄na’i 256 286 274 268 291 359 370 3.0% Kaua’i 1,331 1,971 1,844 3,268 2,503 5,010 3,102 –38.1% Hawai’i Island 4,631 6,797 8,681 11,156 13,392 15,278 18,168 18.9% 

CALENDAR YEAR 1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER 

2014F 2013 %Chge 2014F 2013 %Chge 2014F 2013 %Chge 2014F 2013 %Chge 2014F 2013 %Chge 

Seoul 350,583 379,810 –7.7% 85,989 102,001 –15.7% 83,169 92,510 –10.1% 89,057 92,761 –4.0% 92,368 92,538 –0.2% 

*As of March 31, 2014 

83 

Korea: Group vs. FIT; Leisure vs. Business 

Korea MMA (by Air) 2008 2009 2010 2011 2012 2013p 

% Change 

2013p– 

2014T 

Group vs FIT 

Group tour 9,731 14,435 24,346 31,167 41,870 37,301 –10.9% 

True Independent 17,806 20,474 27,727 35,742 50,815 63,737 25.4% 

Leisure vs business 

Pleasure (Net) 28,381 40,011 70,625 100,791 137,317 156,481 14.0% 

MCI (Net) 4,261 5,309 5,062 4,926 9,218 8,017 13.0% 

Convention/Conf. 3,308 3,828 2,863 3,081 4,726 4,189 –11.4% 

Corp. Meetings 399 615 793 983 612 1,169 91.0% 

Incentive 611 950 1,451 927 3,968 2,840 –28.4% 

Korea: First Timers vs. Repeat Visitors 

Korea MMA (by Air) 2008 2009 2010 2011 2012 2013p % Change 

2012–2013p 

1st timers (%) 67.7 76.6 81.9 83.9 85.3 82.2 –3.6% 

Repeaters (%) 32.3 23.4 18.1 16.1 14.7 17.8 21.1% 

Tax Revenue 

Korea MMA (by Air) 2008 2009 2010 2011 2012 2013p 

State tax revenue generated* ($ Millions) 7.1 8.0 15.9 21.1 30.8 34.3 

* State government tax revenue generated (direct, indirect, and induced) 

TAIWAN FACT SHEET

Taiwan Overview 

The HTA, through Hawai‘i Tourism Taiwan (HTT), implements targeted marketing programs to increase awareness and drive travel demand to Hawai‘i. In January 2014, the HTA contracted the JWI Marketing (JWI), the new HTT, to provide 

marketing representation services in Taiwan. JWI Marketing was established in 

2009 and is a wholly owned subsidiary of the Lion Group. 

Taiwan provides growth opportunities for Hawai‘i with the approval of VISA 

waiver and the startup of direct air services from China Airlines which enables 

Hawai‘i to connect deeper into and cultivate more of Southeast Asian markets. 

2013 Quick Facts 

Visitor Expenditures: N/A.

Primary Purpose of Stay: Pleasure (20,358) vs. MCI (3,047).

Average Length of Stay: 7.59 days.

First Time Visitors: 61.3%.

Repeat Visitors: 38.7%.

Average Number of Trips: 1.96.

TAIWAN (by Air) 2010 2011 2012 2013p % Change 

2012–2013p 2014 Target 

% Change 

2013p– 

2014T 

Visitor Expenditures* 

($ Millions) NA NA NA NA NA 95.0 NA 

Visitor Days 126,445 69,303 84,643 205,035 142.2% 395,200 92.7% 

Arrivals 15,625 8,186 8,769 27,013 208.1% 52,000 92.5% 

Per Person Per Day 

Spending* ($) NA NA NA NA NA 240.3 NA 

Per Person Per Trip 

Spending* ($) NA NA NA NA NA 1826.9 NA 

Length of Stay (days) 8.09 8.47 9.65 7.59 –21.4% 7.60 0.1% 

Contact Information 

Hawai‘i Tourism Authority: Jadie Goo, Tourism Brand Manager 

jadie@gohta.net 

Hawai‘i Tourism Taiwan: Andrew Koh, Account Director 

andrewkoh@hawaiitourism.com.tw 

Market Summary 

• 2013 arrivals from Taiwan increased 142 percent compared to 2012 to 27,013 

visitors. 2014 YTD (Jan–Feb) arrivals rose 211 percent over the same period of 

last year. 

84 

• In 2013, 92 percent visited O‘ahu, 27.4 percent visited Hawai‘i Island, 27.4 percent went to Maui and 3.3 percent went to Kaua‘i. For the first two months of 

2014, O‘ahu received 6,071 visitors (+228 percent); Hawai‘i Island received 

1,029 visitors (+236 percent); Maui received 1,020 visitors (+374 percent); and 

Kaua‘i received 371 visitors (+244 percent). 

• In 2013, more than half of Taiwanese visitors to Hawai‘i are first-time visitors 

(61.3 percent) and 46.2 percent are true independent travelers. 

• The average length of stay in Hawai‘i for Taiwanese visitors in 2013 was 7.59 

days. There was a slight increase for the first two month of 2014 to 8.42 days. 

• Airlift: 

» On June 2, 2013, China Airlines started direct non-stop service, twice a week, 

between Taipei and Honolulu. 

» China Airlines maintains its existing 7 weekly Taipei—Tokyo—Honolulu service. 

» Hawaiian Airlines will end its three weekly Taipei to Honolulu flights in April 

2014 after 9 months of serving the Taiwan market. 

Market Conditions 

• Economic forecast in 2014 for Taiwan is generally positive with GDP expected 

to rise to roughly 3 percent. The outbound travel industry for Taiwan is expected to remain strong with over 10 percent growth. 

• In February 2014, Consumer Confidence Index (CCI) increased by 7.69 points 

to 82.93 points, compared to the same period of the previous year. Overall, the 

variables of CCI were increasing, including Intention for Stock Investment, Domestic Economic Performance, Household Economic Performance, Employment 

Status and The Standard of Commodity Prices. 

• Unemployment rate remains low 

• U.S. VISA waiver continues to attract visitors to U.S. 

• Reduction in air seat capacity to Hawai‘i will impact the market 

• Competition from short-haul destinations offering attractive and affordable 

deals 

• According to the U.S. Department of Commerce, in 2013, approximately 363,000 

Taiwanese visited the U.S., a 25 percent increase over 2012. In 2014 and 2015, 

a year over year growth rate of 15 percent and 10 percent is expected from the 

Taiwan market. 

Visitor Statistics 2010–2014 

TAIWAN (by Air) 2010 2011 2012 2013p % Change 

2012–2013p 2014 Target 

%Change 

2013p 

–2014T 

Visitor expenditures ($ 

Millions) NA NA NA NA NA 95.0 NA 

Visitor Days 126,445 69,303 84,643 205,035 142.2% 395,200 92.7% 

Arrivals 15,625 8,186 8,769 27,013 208.1% 52,000 92.5% 

Per Person Per Day 

Spending ($) NA NA NA NA NA 240.3 NA 

Per Person Per Trip 

Spending ($) NA NA NA NA NA 1826.9 NA 

Length of Stay (days) 8.09 8.47 9.65 7.59 -21.4% 7.60 0.1% 

* Excludes supplemental business spending 

Taiwan: Distribution by Island 

TAIWAN (by Air) 2012 2013p % Change 

2012–2013p 2014 Target 

% Change 

2013p– 

2014T 

O’ahu 7,852 24,821 216.1% 47,323 90.7% 

Maui 1,621 7,407 357.0% 11,360 53.4% 

Moloka’i 11 93 736.5% 357 284.8% 

La ̄na’i 89 624 599.1% 202 –67.6% 

Kaua’i 380 894 135.2% 1,285 43.7% 

Hawai’i Island 1,699 7,391 335.1% 6,982 –5.5% 

85 

Taiwan: Airlift (2014 vs. 2013) 

2014Q1 2013Q1 % Chge 2014Q2 2013Q2 % Chge 2014Q3 

Taiwan 19,448 0 NA 8,864 2,763 220.8% 7,982 

Taiwan: Airlift (2014 vs. 2013)—Continued 

2013Q3 % Chge 2014Q4 2013Q4 % Chge CY 2014 CY 2013 % Chge 

Taiwan 18,566 –57.0% 8,289 19,448 –57.4% 44,583 40,777 9.3% 

Taiwan: Group vs. FIT; Leisure vs. Business 

TAIWAN (by Air) 2012 2013p % Change 

2012–2013p 

Group vs FIT 

Group tour 980 5,450 456.0% 

True Independent 4,904 12,489 154.7% 

Leisure vs business 

Pleasure (Net) 6,608 20,358 208.1% 

MCI (Net) 1,266 3,047 140.6% 

Convention/Conf. 1,038 1,273 22.6% 

Corp. Meetings 158 926 487.5% 

Incentive 107 871 713.8% 

Taiwan: First Timers vs. Repeat Visitors 

TAIWAN (by Air) 2012 2013p % Change 

2012–2013p 

1st timers (%) 57.7 61.3 3.6 

Repeaters ( percent) 42.3 38.7 –3.6 

EUROPE FACT SHEET

Europe Overview 

The HTA, through Hawai‘i Tourism Europe (HTE), targets visitors from the countries of the United Kingdom and Germany, the two top source markets in the Europe Major Market Area (U.K., Germany, France, Italy and Switzerland). In 2013 

and 2014, HTA also provided additional funds to support trainings in France and 

Scandinavia. Europeans continue to travel despite their economic situation, however, they are watching their budget and spending less. Year end 2013 visitor arrivals are up 9.4 percent compared to the same period last year, and per person per 

day spending is down 1.5 percent. The UK Pound and Euro continue to relatively 

stable against the dollar. 

2013 Quick Facts 

Visitor Expenditures: $292.1 million.

Primary Purpose of Stay: Pleasure (111,188) vs. MCI (6,489).

Average Length of Stay: 12.91 days.

First Time Visitors: 70.8%.

Repeat Visitors: 29.2%.

EUROPE MMA (by Air) 2010 2011 2012 2013p % Change 

2012–2013p 2014 Target 

% Change 

2013p— 

2014T 

Visitor Expenditures* 

($ Millions) 228.5 244.0 292.1 334.5 14.5% 358.3 7.1% 

Visitor Days 1,437,409 1,525,705 1,669,269 1,883,581 12.8% 1,978,020 5.0% 

Arrivals 112,765 119,825 129,252 141,408 9.4% 148,500 5.0% 

Per Person Per Day 

Spending* ($) 159.0 160.0 175.0 177.6 1.5% 181.2 2.0% 

Per Person Per Trip 

Spending* ($) 2,026.2 2,036.7 2,259.7 2,365.7 4.7% 2,413.0 2.0% 

Length of Stay (days) 12.75 12.73 12.91 13.32 3.2% 13.32 0.0% 

* Excludes supplemental business spending F: Final P: Preliminary 

86 

Contact Information 

Hawai‘i Tourism Authority: Caroline Anderson, Tourism Brand Manager 

canderson@hawaiitourismauthority.org 

Hawai‘i Tourism Europe: 

Germany: Inga Dockendorf, Account Marketing and PR Manager 

idockendorf@aviareps.com 

UK: Namisha Prajapati, Account Manager 

nprajapati@aviacircle.com 

Market Summary 

Overall 

• European arrivals increased +9.4 percent in 2013 (exceeding targets), with the 

countries of UK, Germany, France and Switzerland showing positive growth 

with the exception of Italy. 

• Daily spending was also up 1.5 percent at $177.6, and thus total visitor spending to increase 14.5 percent. 

• Length of stay increased +3.2 percent to 13.3 days, which brought about doubledigit growth to total visitor days at +12.8 percent. 

• Majority (74 percent) visited O‘ahu, followed by Maui (42 percent), Hawai‘i Island (34 percent) and Kaua‘i (22 percent) in 2013. 

• The first two months of 2014 show visitor arrivals up 7.5 percent over the same 

period last year. 

Market Conditions 

Outlook 

• The U.S. Department of Commerce, ITA, Office of Travel & Tourism Industries’ 

forecasts the following growth for 2014 (against 2013): UK (+1 percent); Germany (+4 percent); France (+5 percent); Italy (–1 percent); Switzerland (+2 percent). Visitor volume from Europe is expected in to increase 2.4 percent in 2014, 

followed by similar and slowly increasing growth over the next four years. The 

largest growth from Europe will come from the U.K., France and Germany. 

While the growth forecasts reflect low-growth rates, it is based on large traveler 

volume bases. (as of November 2013, OTTI) 

• IMF expects the UK economy to grow 2.4 percent this year—faster than any 

other major European economy—against its previous forecast of 1.9 percent. 

• Germans consider the domestic economy to be clearly on the upturn at present. 

In the wake of this, income prospects climbed to reach a 13-year high. Willingness to buy also improved and surpassed its seven-year high of the previous 

month. The considerable increase in the consumer climate is further boosted by 

a recent slump in propensity to save. From the consumers’ point of view, the 

economic upswing in Germany is gaining momentum. 

Competitive Environment 

• In the UK market, early indications are that Vietnam, Mexico and Cuba are 

becoming three of the most requested long-haul destinations for 2014. (Kuoni) 

Travel Trends 

• Hotels are becoming ever more important as the main holiday element, demand 

is growing for smaller destinations and technology is a must while on holiday— 

those are the three key findings of a new TUI consumer survey. Long-haul destinations are more popular than ever while demand is also growing for smaller 

destinations such as Menorca, Kos and Dalaman. Technology is the heart of the 

other three trends. Customers want to combine online and offline, especially for 

bookings, while they also want to be connected while on holiday. 

• Demand for winter holidays was good with a 6.3 percent bookings increase last 

month. Cumulative winter bookings are now 3.8 percent ahead of the previous 

year. There is a massive 42 percent increase in April bookings, mostly due to 

this year’s late Easter, which more than compensates for the 13 percent drop 

in March bookings. However, Germans were also just as interested in booking 

their summer holidays last month. Sales of summer holidays grew by 5.9 percent, with bookings for June and August soaring by 20 percent. Demand for 

May and July was lower than last year, however. Cumulated bookings for summer 2014 are now 7.5 percent higher than one year previously. 

87 

• Brand USA has selected Thomas Cook Group for a multi-million dollar co-operative marketing deal to promote the country as the world’s leading destination 

for European visitors. The agreement is the biggest media and partnership deal 

Brand USA has made with a travel retailer in Europe. The partnership, which 

will initially last for three months from mid-January and run simultaneously 

across the UK, Germany, Belgium and Holland, will see Cook and Brand USA 

embark on a high-profile, multi-media campaign that fully utilizes all the company’s consumer and trade touch-points. 

• TUI and Thomas Cook dominate the European tour operators market, according 

to and fvw overview. Together, these two leisure travel groups have a combined 

market share of more than 50 percent in the major source markets of the UK, 

Scandinavia, Netherlands and Belgium, and more than 30 percent of the German mark. Kuoni is Europe’s third largest tour operator followed by DER 

Touristik, Costa (a cruise firm), FTI and Alltours. 

Airlift 

• Asiana Air is now offering flights exclusive Germany to Honolulu. Daily service, 

except Monday and Tuesday, Germans can fly from Frankfurt via Seoul to Honolulu. 

88 

Visitor Statistics 2008–2013p 

EUROPE MMA (by Air) 2008 2009 2010 2011 2012 2013p % Change 2012–2013p 2014 Target % Change 2013p–2014T 

Visitor Expenditures* ($ Millions) 248.9 197.2 228.5 244.0 292.1 334.5 14.5% 358.3 7.1% Visitor Days 1,474,584 1,366,674 1,437,409 1,525,705 1,669,269 1,883,581 12.8% 1,978,020 5.0% Arrivals 115,172 104,403 112,765 119,825 129,252 141,408 9.4% 148,500 5.0% Per Person Per Day Spending* ($) 168.8 144.3 159.0 160.0 175.0 177.6 1.5% 181.2 2.0% Per Person Per Trip Spending* ($) 2,161.5 1,888.7 2,026.2 2,036.7 2,259.7 2,365.7 4.7% 2,413.0 2.0% Length of Stay (days) 12.80 13.09 12.75 12.73 12.91 13.32 3.2% 13.32 0.0% 

*Excludes supplemental business spending 

Europe: Distribution by Island 

2008 2009 2010 2011 2012 2013p % Change 2012–2013p 2014 Target % Change 2013p–2014T 

O’ahu 82,877 76,412 81,352 86,432 89,337 104,677 17.2% 98,755 –5.7% Maui County 43,348 39,698 44,120 47,678 54,331 59,122 8.8% Maui 42,128 39,012 43,253 46,955 53,556 57,685 7.7% 62,399 8.2% Moloka’i 1,816 1,763 1,801 1,949 2,132 2,225 4.4% 2,499 12.3% La ̄na’i 1,941 1,733 1,801 1,803 1,469 2,540 72.9% 1,739 –31.5% Kaua’i 22,233 20,938 21,908 24,273 28,773 31,099 8.1% 33,210 6.8% Hawai’i Island 31,748 30,397 30,868 34,916 40,687 48,571 19.4% 51,417 Hilo 14,007 14,567 14,533 16,591 18,766 25,914 38.1% Kona 25,584 24,263 24,631 28,679 33,299 36,788 10.5% 

89 

Europe: Group vs. FIT; Leisure vs. Business 

VISITOR ARRIVALS BY 

AIR 2008 2009 2010 2011 2012 2013p % Change 2012–2013p 

Group vs FIT 

Group tour 9,503 7,236 6,913 8,493 9,124 8,009 –12.2% 

True Independent 62,769 59,568 63,342 68,749 74,481 89,280 19.9% 

Leisure vs business 

Pleasure (Net) 97,676 89,807 97,522 103,072 111,188 121,856 9.6% 

MCI (Net) 7,312 7,077 5,533 7,695 6,489 9,059 39.6% 

Convention/Conf. 4,765 5,507 4,045 5,185 4,148 6,018 45.1% 

Corp. Meetings 1,310 773 700 1,159 952 1,034 8.6% 

Incentive 1,537 966 962 1,557 1,573 2,318 47.4% 

Europe: First Timers vs. Repeat Visitors 

2008 2009 2010 2011 2012 2013p % Change 

2012–2013p 

1st timers (%) 70.4 70.4 71.2 69.9 70.8 71.6 0.8 

Repeaters (%) 29.6 29.6 28.8 30.1 29.2 28.4 –0.8 

Cost per Arrival/Return on Investment/Tax Revenue 

2008 2009 2010 2011 2012 2013p 

HTA Expenses ($ Millions) 0.998 0.185 0.306 0.377 0.497 0.451 

State tax revenue generated* 

($ Millions) 22.2 20.0 24.9 26.6 31.8 36.4 

Return on Investment 22.20 108.29 81.35 70.52 64.03 80.81 

Cost Per Arrival 8.67 1.77 2.71 3.15 3.85 3.19 

* State government tax revenue generated (direct, indirect, and induced) 


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RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. BRIAN SCHATZ TO

ROGER DOW

Question 1. U.S. Customs and Border Protection rolled out the Model Ports of 

Entry Program at America’s top 20 gateway airports starting in 2006 to encourage 

public-private collaboration to improve the U.S. entry process. How effective has the 

Model Ports of Entry Program been? 

Answer. The Model Ports Program was initially piloted at Houston’s George Bush 

Intercontinental Airport (IAH) and Washington Dulles International Airport (IAD) 

and focused on improvements to three particular areas of the entry process: staffing, 

queue management, and signage. Working in collaboration with the private sector, 

entry improvements were made to provide a more welcoming experience to international travelers through the more descriptive signage and materials in various 

languages, the creation and implementation of Passenger Service Managers, and the 

development (in coordination with Disney) of a welcoming video for the queuing 

area. That being said, the private sector’s expertise was not fully utilized during the 

pilot program or rollout to the top 20 airports. 

To the surprise of the travel industry, DHS declared the Model Ports program 

fully implemented at the following airports: Atlanta, Boston, Dallas/Ft. Worth, Dulles, Chicago, Detroit, Ft. Lauderdale, Honolulu, Houston, Las Vegas, Los Angeles, 

Miami, Newark, New York (JFK), Orlando, Philadelphia, Sanford (FL), San Juan, 

San Francisco, and Seattle. Although improvements were made, the travel industry 

feels that the program never lived up to its potential and that additional organized 

stakeholder engagement could have led to a more robust program. 

Question 1a. How could this program be better leveraged to improve the U.S. 

entry process? 

Answer. While there was some collaboration with private sector entities as part 

of the Model Ports program, adoption of a series of recommendations could have led 

to significant improvements in the customer experience for international visitors 

and returning U.S. citizens. Understanding CBP’s limited resources, it is unreasonable to expect the elimination of all wait times during peak processing hours, however, improvements to queue management, customer service, and the physical inspection hall could significantly improve a passengers perception of the entry process. Additionally, leveraging the private sector expertise could allow CBP to make 

significant improvements while under tight budget constraints. The re-launching of 

the Loaned Executive program is the perfect vehicle for a renewed Model Ports of 

Entry effort to reexamine enhanced public/private sector collaboration. By working 

with industry stakeholders including—airports, theme parks, local destinations, convention and visitor bureaus, online travel companies, airlines, and other organizations—CBP could develop best practices for the customer experience that could be 

applied at our Nation’s busiest international entry airports. 

Question 2. The U.S. Department of Homeland Security has taken steps to reduce 

wait times at U.S. ports of entry by expanding U.S. Customs and Border Protection’s trusted traveler programs, primarily the Global Entry Program. What specific 

actions could the Federal Government take to further expand the program and increase enrollment to boost enrollment and expedite the entry process? 

Answer. U.S. Travel has been a strong advocate for the Global Entry program. 

The program has provided benefits to CBP, program enrollees, and the general traveling public by allowing CBP to focus their limited resources on the ‘unknown’ travelers, while allowing the trusted individuals expedited entry upon arrival. That 

being said, the specific initiatives below could lead to a significant increase in Global 

Entry enrollees and additional efficiencies for CBP: 

• Domestic: 

» DHS and the Department of State should coordinate visa renewals and Global 

Entry enrollment. 

» DHS should revamp and simplify the online application process for Global 

Entry, without sacrificing any security protocols. 

» CBP should consider waiving the Global Entry application fee for children of 

Global Entry members. 

» CBP should consider using retired CBP officers for Global Entry interviews 

to ensure current officers are utilized for frontline screening and security operations. 

• International: 

» CBP should aggressively pursue bilateral agreements with foreign governments and transition current pilots into full-fledged programs. 

107 

» DHS and the Department of State should coordinate visa and Global Entry 

enrollment for the citizens of countries that are currently have bilateral trusted traveler programs but are not part of the visa waiver program. 

Question 3. As the United States continues to reduce visa wait times, it is important to consider how we compare to our biggest competitor countries in terms of how 

long the visa application process takes. The perception of a lengthy wait time for 

visas hurts the United States’ competitiveness in the global travel marketplace. 

Could you please provide examples of how the United States compares to key competitors in terms of the visa application process? 

Answer. The United States’ visa process can be more onerous than other countries. A report by the World Travel & Tourism Council found that in 2011, the 

United States required visas for 36 percent of tourist arrivals—more than double 

the G20 average of 17 percent. In fact, among the G20 countries, only Saudi Arabia 

and India had a higher percentage of foreign tourists who were required to have 

visas. The United States requires all Brazilians to have visas when entering the 

country, while European countries waive this requirement for tourists staying under 

90 days. Likewise, the United States offers fewer consular services in emerging markets than its competitors. Whereas the United Kingdom has 12 consulates capable 

of processing visas in China, the United States only has six. 

Question 3a. What specific actions could the Federal Government take to further 

streamline the visa application process? 

Answer. The Federal Government can take several actions to improve the visa 

process. I urge Congress to pass the JOLT Act. This bill would streamline the application process by creating a videoconferencing program for visa interviews, expanding the Visa Waiver Program, creating an expedited visa service, and encouraging 

travelers apply for visas during periods of low demand. I also recommend that Congress take actions to extend the length of U.S. visas for Chinese nationals, which 

currently are only valid for one year. This is cumbersome to travelers, and it requires an inordinate amount of time and staff to process the current number of visa 

renewal applications. 

Question 4. Certain travel and tourism data is necessary for the Federal Government and the private sector to target the international markets with the greatest 

future growth potential to remain competitive in the global travel marketplace. The 

Travel Promotion Act (P.L. 111–145) called for the U.S. Department of Commerce 

to expand and continue its research and development activities in connection with 

the promotion of international travel to the United States. Does the U.S. Department of Commerce collect the necessary data the industry requires? 

Answer. The Department of Commerce’s National Travel and Tourism Office 

(NTTO) has been collecting statistical data about air passenger travelers from overseas, Canadian and Mexican markets from the Survey of International Air Travelers 

(SIAT) since 1983. 

In general, the content and information collected through the survey is valuable 

and provides the government and the U.S. travel community detailed information 

on the number of arrivals, visitors’ length of stay, level of spending and activities 

during their stay. 

One of the major challenges for the program over the years has been a lack of 

funding, which has reduced the number of surveys collected and processed since 

costs for conducting the research have increased over time. Many state travel offices 

and city convention and visitor’s bureaus no longer find the data from the In-Flight 

Survey to be reliable due to the small sample size. This is particularly true for small 

to medium-sized states. 

If the SIAT could reach a one-percent sample size, all States would be better able 

to determine what demographic is travelling into and out of their market and thus 

use the data to attract greater numbers of international visitors. These visitors on 

average spend $4,500 per trip to the U.S. Increased tourism at the state level will 

create more jobs and contribute significantly to individual state economies. 

The SIAT is a critical tool in our countries continued efforts to boost international 

travel. We firmly believe that funding for the SIAT is critical to fully realizing the 

benefits of private and public sector efforts to market the U.S. as a premier destination and drive international visitation that is vital to our Nation’s economy. As a 

result, we support the Administration’s request for an additional $1.5 million for the 

program in Fiscal Year 2015. 

108 

RESPONSE TO WRITTEN QUESTION SUBMITTED BY HON. BILL NELSON TO

ROGER DOW

Question. In your testimony, you note the fact that visa issues and customs clearance experiences and wait times are one of the main deterrents for international 

visitors to the United States. I frequently hear about these concerns from a number 

of tourism companies in Florida—particularly about Customs and Border Protection 

(CBP) staffing and delays at the Miami airport. From your perspective, how much 

of an impediment are these factors for international visitors? In particular, I am interested in your experience in the Brazilian market—which is a major source of visitors to Florida. 

Answer. Entry delays at our international airports are alarmingly pervasive, including at Miami International (MIA). Because of the steep demand in Brazil to 

visit the United States, the fact that Miami is the key gateway for this traffic, and 

the steep growth in passenger volumes through Miami, there is no doubt that delays 

there discourage potential Brazilian visitors. 

Last September, a U.S. Travel report documented that over the preceding 12 

months, more than 40,000 passengers waited over two hours to be processed at 

MIA. Surveys reflected in that report also showed that 43 percent of overseas travelers who visited the U.S. said they will recommend that others avoid a trip here 

because of the entry process. Among business travelers, 44 percent said that they 

will not visit the U.S. in the next five years because of the entry inefficiencies. 

This affects travel from many overseas nations, but the impact is particularly 

acute for the enormous volume of prospective visitors from Brazil, the third-largest 

overseas (excluding Canada and Mexico) inbound travel market. In 2013, the fourth 

consecutive record-breaking year, the volume of Brazilian visitors rose by 15 percent, accounting for three percent of last year’s total visitor volume. One can only 

imagine how much faster the volume would increase without the U.S. entry problems. 

It is my understanding that the situation has been at least temporarily eased, although at significant local expense, by installation of Automated Passport Control 

kiosks and by pilot programs to cover CBP personnel overtime during peak periods. 

However, as the fastest-growing airport in the Nation with 30 percent increase in 

international passengers since 2007, these strides clearly have been hampered by 

the static number of CBP officers available to process entering visitors. As the bipartisan Miami area congressional delegation has articulated clearly on many occasions, it is difficult to exaggerate the impact on travel and trade. 

All concerned appreciate the congressional decision, in the recently-enacted omnibus appropriations package for Fiscal Year 2014, to fund 2000 new CBP officers; 

and DHS Secretary Johnson’s commitment to fill these positions on an expedited 

basis. While we believe additional CBP personnel are still needed to solve the problem you raise, assigning a substantial amount of these initial new-hires is a good 

first step. 

In that context, I must stress our strong view that this must be accompanied by 

new metrics to make sure that actions such as hiring more CBP officers actually 

improve the traveler experience. For this reason, we call on CBP to adopt a goal 

to process 80 percent of all inbound travelers within 30 minutes and 100 percent 

of inbound travelers within 45 minutes. 

RESPONSE TO WRITTEN QUESTION SUBMITTED BY HON. AMY KLOBUCHAR TO

ROGER DOW

Question. Many people underestimate what encouraging international tourists to 

visit the United States means for diplomacy—international visitors to the United 

States are 74 percent more likely to have a favorable view of America after they 

come and visit. Do you feel that as tourism is making a come-back in the United 

States after the economic downturn, that we are once again starting to gain the 

international diplomatic benefits of international visitation to the United States? In 

your opinion do you think that this type of informal diplomacy makes our country 

a more secure place? 

Answer. I certainly agree that, in addition to the economic benefits, inbound international travel yields significant public diplomacy dividends for the United States. 

Our best ambassadors are ordinary Americans, who convey our fundamental values 

through personal engagement with visitors. When they drive along our coastline, 

stop at our vineyards, camp at our national parks, go to a ballgame, or follow the 

Underground Railroad or Freedom Trail, they experience not just our attractions 

but the fabric of our communities. 

109 

That’s why today, more than ever, overseas travelers visit not only our gateway 

cities but also make extended tours of the American heartland. Increasingly, foreign 

tour operators are encouraging itineraries that may begin and end in large metropolitan areas but also wind through smaller and rural regions, to showcase more 

fully the genuine American spirit. More than any government policy, that kind of 

people-to-people hospitality breaks through cultural and political barriers, making 

a lifelong impression on visitors that they return home to report to others. 

There is no doubt this has decidedly positive public diplomacy implications. In 

2007, the House Foreign Affairs Committee held a series of hearings on this subject, 

examining considerable survey research showing precisely what your question suggests: that nearly every foreign citizen who visits here returns home more favorable 

toward the United States, toward Americans and even about our foreign policies. 

And we can assume that these visitors include many of tomorrow’s leaders in each 

of these nations—individuals who may then come back to the U.S. in a work capacity with a much more nuanced understanding for the American psyche, benefitting 

all concerned. As the volume of international visitors rises, these benefits will grow 

as well. 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. BILL NELSON TO

CHRISTOPHER L. THOMPSON

Question 1. Mr. Thompson, I know Brand USA is currently conducting advertising 

and outreach in Brazil. What are your thoughts on how problems visitors experience 

with visas and wait times at customs impact travel to the U.S. from Brazil? 

Answer. Brand USA’s mission is to market the United States as the premier travel destination for international travelers. In Brazil, we have engaged the Brazilian 

market in three ways. First by targeting the consumer audience by running a consumer based advertising campaign. Second by engaging the travel trade having participated in travel and trade shows in Brazil in 2013 and 2014. And finally through 

co-operative partnerships with our partners to market the many destinations in the 

United States. Brazil has shown tremendous growth and opportunity and Brand 

USA is actively engaged in the Brazilian market to ensure the U.S. remains a top 

travel destination for Brazilian tourists. 

According to the recent ITB World Travel Trends Report, Brazilians are driving 

the outbound travel growth in South America in large part due to their love of short 

shopping trips, but this trend is shifting as well. Middle-income consumers that may 

have traveled for the first time five or six years ago are beginning to explore new 

places and types of trips, especially in Europe. The challenge in the United States 

is to better expose Brazilians to the diversity of opportunities available here. 

Entry into the Visa Waiver Program has proven to grow visitation from accepted 

countries. Being able to compete on a level playing field with Europe and other destinations would help our efforts. We will continue to market the United States 

under any conditions and are confident that number of Brazilians coming to the 

United States will continue to grow. 

Question 2. Over the past few years, Brand USA has expanded its outreach to a 

number of countries. However, the only South American country currently included 

is Brazil. In the future, do you contemplate expanding outreach to other South 

American countries? 

Answer. In South America, we actually have some form of marketing activity in 

Argentina, Brazil, Chile, Columbia, and Uraguay. 

With the establishment of our international representation office in Brazil in early 

2014, we have been able to roll out consumer marketing through our co-operative 

marketing programs and public relations, as well as reach consumers through our 

outreach with the travel trade. Latin America is a key focus for Brand USA, and 

we intend to continue our expansion in those markets—particularly in Chile, which 

has recently been admitted into the Visa Waiver Program. 

Brand USA has also talked to several airlines within South America on developing new routes to the United States. 

We also have efforts throughout Mexico and Central America. In Mexico, we have 

a full consumer campaign and have participated in several trade shows and have 

conducted public relations efforts in Costa Rica, Dominican Republic and Guatemala. 

110 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. AMY KLOBUCHAR TO

CHRISTOPHER L. THOMPSON

Question 1. Brand USA was created in 2010 and has now been operational for 

three years. As a new type of public-private partnership, Brand USA has had to 

pave its way to success through cooperation and partnerships across the industry. 

A recent study by Oxford Economics concluded that Brand USA has a return on investment rate of 47 to 1. That means that for every $1 spent on travel promotion 

the United States gets $47 worth of economic benefits. That is a testament to Brand 

USA’s efficiency . . . we’re still spending less than many of our global competitors 

but we’re getting more bang for our buck. Can you explain the reasoning behind this 

return on investment rate and why it is such a positive story for the U.S. economy? 

Answer. The Oxford Economics study utilized an econometric model, validated 

with both consumer post-ad campaign studies and competitive destination market 

share trends, to calculate the incremental impact of Brand USA’s marketing activities. In addition to effective general marketing practices, there are a couple of reasons why Brand USA has been able to achieve such a high ROI percentage: 

• Cooperative partner marketing (which represents a majority of Brand USA’s 

marketing) allows us to pool funds to boost advertising reach, and reduce cost 

• In-kind contributions often further reduce marketing cost (e.g., sourcing images) 

or enhance consumer reach (e.g., placements in magazines) 

The additional international visitors attracted by Brand USA marketing generated $3.4 billion for U.S. companies and supported over 53,000 jobs—and without 

a single dollar collected from U.S. taxpayers. In addition, nearly $1 billion was collected in state, local and Federal taxes. 

It’s also important to note that when the Travel Promotion Act was being considered back in 2009, the projected return on investment of Brand USA’s activities 

once fully operational was a 20 to 1 with support for 47,000 jobs. Clearly, Brand 

USA is exceeding that estimate—and that was accomplished from the organization’s 

presence in eight markets. Today, Brand USA is fully deployed in 10 markets, has 

travel trade outreach in 20 markets, and has a marketing presence in more than 

30 markets. 

Question 1a. Can you give us a preview of what is next for Brand USA? 

Answer. As Brand USA moves forward in achieving the goal of welcoming 100 

million international visitors to the United States by 2020, we will continue to develop new programs and platforms and expand our full-scale consumer marketing 

campaign into additional markets. Brand USA plans to focus its efforts in multiple 

ways—from working in partnership with the Federal Government in support of the 

National Travel and Tourism Strategy, to promoting the great outdoors, to implementing culinary and retail strategies, to developing the Nation’s first comprehensive calendar of events and experiences, to expanding our fully integrated consumer 

campaign, to continuing to build out the Nation’s largest international representation network, to promoting and celebrating the National Parks with the production 

of a giant screen film, to sales missions, roadshows and mega familiarization trips, 

and more. All of these efforts serve to promote the experiences available throughout 

the 50 states, the District of Columbia, and the five territories to, through, and beyond the gateways. 

Great outdoors and National Parks 

Brand USA will market around the great outdoors and national parks. As part 

of that overall marketing strategy, in the fall of 2014, we will begin production on 

a film for giant screen theatres that celebrates National Parks and Federally Managed lands. We plan to release the film in mid-2015 to honor the centennial anniversary of the National Park Service. 

Giant screen theatres can be found in many of Brand USA’s key target markets. 

There are over 800 giant screen theatres in over 57 countries around the world and 

that number continues to grow. One market which this film can have significant impact is China, one of the United States’ top 10 countries in both international visitation and spend, has the second largest market with over 75 giant screen theatres 

located throughout the country. 

In conjunction with the big screen film, we will launch a social media campaign 

highlighting the great outdoors and U.S. national parks to over 5 million fans across 

our social media channels. 

Culinary Initiatives 

We are also launching our culinary initiative inviting the world to explore the 

country’s rich culinary landscape. The Great American Food Stories provides 31 

111 

chief-inspired recipes and a variety of culinary stories for each of the six culinary 

regions of the United States. The 31 chefs featured in the guide are drawn from 

the State Department’s Diplomatic Culinary Partnership with the James Beard 

Foundation. The culinary initiative is a high-quality tool to promote U.S. Food and 

travel experiences around the globe, and will launch with an integrated digital platform. 

Promoting Retail 

Shopping is the number one leisure activity for 88 percent of all overseas visitors. 

In 2014 and beyond, we will continue and expand upon our retail strategy with campaigns in Australia, Brazil, Canada, China, Japan, Korea and the United Kingdom. 

Calendar of Events 

We will also launch a calendar of events across our consumer website. This platform will allow our partners and destinations around the country to showcase their 

festivals, sporting and cultural events to international travelers. This will be the 

first national calendar of events of its kind, created to inspire to international tourists to visit the United States. 

Consumer Campaign 

The Brand USA consumer campaign will target specific markets and be timed to 

roll out in markets when our target markets enter the planning phase of their travel—with a focus on experiences that resonate most with travelers in each market. 

For example, Brand USA has recently launched targeted consumer campaigns, in 

Mexico and Brazil, highlighting the great skiing the country has to offer. The timing 

of this campaign was designed to target audiences as they are planning their winter 

trips. Noting the attention and demand generated has prompted Brand USA to extend this campaign. We will continue to develop new campaigns around the great 

skiing experiences the United States has. 

Later this year we will be launching a campaign in several markets around the 

great golf courses this country has to offer. The campaign will be active in several 

markets including Brazil, Canada, Mexico and feature golf courses across the country. 

Question 1b. Where are your making your biggest investments and are you continuing to enter new markets in the coming year? 

Answer. As the Nation’s destination marketing organization, we currently have 

marketing initiatives in more than 30 markets that we believe have the highest potential for growth—a combination of emerging and established markets that currently generate more than 90 percent of all inbound travel to the United States. The 

markets are Argentina, Australia, Austria, Belgium, Belize, Brazil, Canada, Chile, 

China, Costa Rica, El Salvador, France, Guatemala, Germany, Honduras, Hong 

Kong, India, Ireland, Italy, Japan, South Korea, Mexico, Netherlands, New Zealand, 

Nicaragua, Panama, Russia, Singapore, Spain, Sweden, Switzerland, Taiwan, 

United Arab Emirates and the United Kingdom. 

To date, we have fully deployed our marketing outreach efforts in 10 markets 

with an effective combination of our consumer brand campaign, co-operative marketing programs and platforms, and travel trade outreach. Those markets are Australia, Brazil, Canada, China, Germany, Japan, South Korea, Mexico, New Zealand 

and the United Kingdom. 

Brand USA is currently analyzing which international source markets to expand 

and deploy our marketing outreach efforts. Our analysis will focus on identifying the 

markets, which have the greatest opportunity for growth in the near term. This 

analysis is done to ensure we are deploying our resources in the most efficient and 

effective way possible. 

Question 2. Brand USA has been able to form a number of industry partnerships 

but it has also been able to form many partnerships with local and regional visitors 

bureaus, such as Explore Minnesota in my state, that are benefiting from the leverage Brand USA gives them to market abroad more widely. Not all states have large 

marketing budgets so Brand USA is opening doors to new markets around the 

world. What services do you offer not only to state visitors bureaus but local or regional visitors bureaus who are looking to expand their marketing by partnering 

with Brand USA? 

Answer. Brand USA offers a variety of marketing-driven cooperative programs to 

inspire inbound visitor travel to the United States and drive tourism dollars to communities in all 50 states, the District of Columbia and the five territories. Our programs include consumer, co-operative marketing and trade outreach opportunities 

that add and create value for our partners. 

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We currently have over 100 programs that create over 200 opportunities for our 

partners to grow their international presence and increase international visitation, 

all at a scale and cost that wouldn’t be possible without Brand USA. 

Many local and regional visitor bureaus have participated in our programs. Some 

of the most popular include our Inspiration Guides, In-Language Videos and Discover America Global Websites. 

The Inspiration Guides are Brand USA’s official language-specific print and online 

guides created to inspire travel by displaying the richness and variety of the American experiences to international travelers. Stunning photography and compelling 

copy are the hallmarks that attract readers. Participating partners also have the opportunity to promote their destination through a featured photo essay. This year, 

more than 550,000 print copies will be produced in 10 languages for 18 international 

audiences. 

Brand USA’s In-Language Video program creates and distributes in-language 

multimedia content to help U.S. destinations promote their experiences to international travelers. Video content is customized to the specific international audience’s point of view and targeted to interest (Culture, Indulgence, Great Outdoors 

or Urban Excitement) and country (Australia, Brazil, Canada, China, France, Germany, Italy, Japan, Mexico and/or the United Kingdom). Participating destinations 

can distribute video content through their own marketing channels. Additionally, 

Brand USA will distribute the videos through its digital channels. With our partners, we have produced over 500 videos, featuring many large and small destinations including Bloomington, Minnesota; Myrtle Beach, South Carolina; Loudon 

County, Virginia; Bismarck, North Dakota and many more. 

Many of our partners have also enhanced their presence on our consumer website, 

DiscoverAmerica.com. DiscoverAmerica.com was designed to help inspire international visitors and travel influencers to choose U.S. travel destinations, travel providers and experiences. There are several options on DiscoverAmerica.com that help 

international travelers learn more about specific destinations, travel brands or organizations. These pages create another cost effective way for these entities to expose 

themselves to several markets while gaining international visibility through the 

consumer promotions, which lead travelers to our websites. 

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. ROY BLUNT TO

CHRISTOPHER L. THOMPSON

Question 1. The Travel Promotion Act authorizes Brand USA to receive in-kind 

contributions. Can you give examples of these in-kind contributions, and the value 

they provide? 

Answer. Brand USA receives valuable in-kind contributions from domestic and 

international partners that allow the organization to conduct promotional activities 

that it would not otherwise be able to do. 

For example, in May 2013, Brand USA organized the first ever ‘‘mega-familiarization tour’’ (MegaFam) to the United States. MegaFams are marketing initiatives 

that are key to promoting destinations to, through, and beyond the gateways. Familiarization tours are a common practice in destination marketing in which a city or 

state recruits sellers of travel or travel journalists to tour the destination in order 

to sell and/or write about it when they return home. The Brand USA inaugural 

MegaFam expanded this to a larger scale that only the national DMO can accomplish. Brand USA brought the top 100 sellers of travel to the United States from 

the UK—in fact, the participants had to compete on volume of sale over the preceding fiscal quarter—and put them on seven different itineraries around the 

United States that highlighted well-known and off-the-beaten path experiences. All 

seven groups assembled in Miami at the end of the tour to present their respective 

itineraries to the other Megafam participants. 

The MegaFam was possible because of in-kind contributions to Brand USA from 

its partners. British Airways provided all the airline tickets to fly the participants 

to and from the United States. American Airlines provided airline tickets to Miami 

for the final send-off. All ground transportation and lodging was also contributed by 

a variety of partners on an in-kind basis. These valuable contributions not only allowed this groundbreaking campaign to take place—and to serve as a model for 

similar fam tours from other markets—but also increased the reach of the publicity 

associated with the trips. 

Building on this success and leveraging the in-kind model, this year Brand USA 

ran additional MegaFams from the UK, Australia and Germany. These MegaFams 

showcased several destinations across 25 states. The results of the Megafams are 

impressive—during the three-month competition phase alone, in this year’s second 

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Megafam from the UK, participating travel agents booked over 12,000 flights to and 

within the USA, up from 5,500 flights during the competition phase in 2013. As a 

marketing initiative, MegaFams are key to promoting all of the experiences the 

United States has to offer, especially non-gateway destinations that agents normally 

would not visit. 

This example of an in-kind contribution is just one among many. Other forms of 

in-kind include contributed advertising space such as full-page ads and dedicated 

inserts in major newspapers like The Guardian, placement in major tour guides 

around the world, and free video and still images that Brand USA would otherwise 

have had to create from scratch. In-kind contributions of media augment Brand 

USA’s marketing plans, which enables Brand USA to reallocate resources and spend 

its cash budget on promotional activities elsewhere. 

All submissions for Federal matching funds for in-kind contributions are evaluated by a vetted third-party valuator (if no invoice for sale of a comparable good 

or service exists) before being certified by an independent public accounting firm 

and meticulously reviewed and confirmed by the Department of Commerce. 

Question 2. The recent Government Accountability Office (GAO) programmatic review and report of Brand USA included three key recommendations. Can you explain in greater detail how you addressed these recommendations from GAO? What 

other findings were there in the report? 

Answer. The GAO report covers the period from March 2012 to July 2013 and was 

a follow-up to the assessment finalized in March 2012 as required by the Travel 

Promotion Act. The title of the document is ‘‘Brand USA Needs Plans for Measuring 

Performance and Updated Policy on Private Sector Contributions.’’ GAO reported 

that Brand USA successfully promotes international travel to rural and urban areas 

equally and to all 50 states, DC and the five territories. The report provides detailed 

descriptions of Brand USA’s personnel and procurement policies, which are compliant with all requirements of the Travel Promotion Act. It also provided an in-depth 

explanation of the in-kind valuation methodologies and Federal matching funds 

oversight administered by the Department of Commerce with input from Brand 

USA. 

The report identifies three key recommendations: (1) to develop metrics plans that 

measure not only the effectiveness of the campaign, but its ultimate macro impact 

on travel to and spending in the United States; (2) to competitively select the firm 

that assists in media valuation for matching funds; and (3) to formalize procedures 

with the Department of Commerce to revise the matching funds policies if necessary. 

At the time of the GAO report we shared with the GAO both our existing metrics 

around advertising reach and consumer sentiment as well as our pathway toward 

measure impact on macroeconomic outcomes like actual international visitation and 

spend. Since the report was issued, we have released an Oxford Economics study 

that demonstrates Brand USA’s incremental impact on actual visitation and spend. 

The study employs an econometric model that is validated by a consumer sentiment 

model and a market share model. The results showed that in FY13 Brand USA was 

responsible for 1.1 million incremental international visitors that spent $3.4 billion 

and led to total economic activity of $7.4 billion, support for over 53,000 new U.S. 

jobs and a 47:1 marketing ROI. 

As the GAO report points out, Brand USA’s hiring and procurement policies are 

consistent with the Travel Promotion Act and other applicable standards. However, 

in one instance the policy was not followed in the selection of the media valuation 

firm, which is a third-party valuator of media that is given to Brand USA as an 

in-kind contribution. The reason the firm was selected without a competitive bid is 

that the task is unique and complex, and the firm was selected after extensive vetting and approval from the Departments of Commerce and Treasury, which included 

review and approval of methodology. However, Brand USA has since put that contract out to bid in accordance with the GAO recommendation. 

The GAO report found that the system of valuation, validation and extensive oversight that has been set up to process applications for Federal matching funds is 

quite robust and compliant with the Travel Promotion Act and all relevant standards. The recommendation is not about the in-kind policies themselves but about 

how those policies might be amended if changes are necessary in the future. The 

policies pertain to the Department of Commerce but are mutually developed to ensure they stay of stay abreast of new types of contributions and best practices, and 

the two sides have successfully amended the policies several times. In response to 

the GAO recommendation, Brand USA and the Department of Commerce have codified the process we use to amend those procedures whenever novel types of contributions arise that necessitate changes. 

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RESPONSE TO WRITTEN QUESTION SUBMITTED BY HON. AMY KLOBUCHAR TO

MIKE MCCARTNEY

Question. Brand USA has been able to form a number of industry partnerships 

but it has also been able to form many partnerships with local and regional visitors 

bureaus, such as Explore Minnesota in my state, that are benefiting from the leverage Brand USA gives them to market abroad more widely. Not all states have large 

marketing budgets so Brand USA is opening doors to new markets around the 

world. Can you expand on what your efforts were like before Brand USA and what 

your international promotion efforts are like now with Brand USA? 

Answer. The HTA has invested in the international markets for many years. Our 

approach was driven more through direct travel trade collaborative efforts that 

where focused on Japan, Oceania (Australia and New Zealand), Europe, Canada, 

Taiwan, China and Korea. Brand USA has enabled us to elevate our efforts in these 

countries as well as expand our efforts into Latin America and intended entries into 

Hong Kong and Southeast Asia in 2015. 

Several areas where we will grow our efforts will be in co-op advertising and online exposure through search engine websites and social media. 

RESPONSE TO WRITTEN QUESTION SUBMITTED BY HON. AMY KLOBUCHAR TO

BRAD DEAN

Question. Brand USA has been able to form a number of industry partnerships 

but it has also been able to form many partnerships with local and regional visitors 

bureaus, such as Explore Minnesota in my state, that are benefiting from the leverage Brand USA gives them to market abroad more widely. Not all states have large 

marketing budgets so Brand USA is opening doors to new markets around the 

world. Can you expand on what your efforts were like before Brand USA and what 

your international promotion efforts are like now with Brand USA? 

Answer. International tourism is a tremendous growth opportunity for the United 

States tourism industry. The typical international traveler stays longer and spends 

more than the average domestic traveler. As you are well aware, our Nation missed 

out on the growth in international travel prior to the creation of Brand USA, resulting in what many experts have termed the ‘‘Lost Decade of Tourism.’’ 

Prior to our partnership with Brand USA, our efforts were limited to seasonal 

promotional in Ontario, Canada and a very limited promotional effort in the United 

Kingdom and Germany. The Canadian promotion resulted in a seasonal influx of 

visitors from the Toronto area for approximately six weeks each year. Due to budget 

limitations and the inability to establish sufficient brand awareness, our efforts in 

Europe yielded very limited results. 

Through Brand USA, our message is amplified and our investments are more efficient. Brand USA provides us with the market intelligence and tools which enable 

us to be much more competitive in international marketing in the following ways: 

(1) Through Brand USA, we can reach a much larger audience. Prior to Brand 

USA, we had to be very selective on where we could promote, today we are 

able to enter markets with our destination message simply by working 

through the agency. Essentially, Brand USA opens the door to new global 

markets and our cost of entry is much more affordable, enabling us to promote 

in more places. 

(2) Brand USA enables us to leverage our resources through media purchases and 

publicity strategies that we simply could not achieve on our own. One example 

of how this benefits a local tourism promoter is the relationships Brand USA 

has established with large, multinational media companies and promotional 

entities. We could not develop those relationships on our own. As a result, our 

marketing dollars are stretched farther and the return on our marketing investment is much higher. 

(3) Brand USA is able to serve in a key part of three-way partnerships with local/ 

state promoters and airlines, which are essential to our ability to significantly 

grow international tourism. By partnering with Brand USA, we can bring additional resources and expertise to the table, which gives airline partners 

needed assurance that the establishing air service to U.S. destinations will be 

successful. 

(4) Brand USA provides insightful research and essential knowledge and expertise that help us navigate the maze of necessities in growing international 

tourism. Language translation is one challenge, but understanding and adapting to the many cultural, social, and generational nuances and practices in 

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countries throughout the world is not something we can easily attain on our 

own. Through Brand USA, we become better marketers prepared to compete 

on the global scale. 

Brand USA enables us to expand and enhance our international marketing efforts. In the past three years, we’ve seen double-digit growth in international tourism, outpacing our domestic growth by nearly three times. Brand USA has helped 

spur economic growth and job creation in our community, and we believe the best 

is yet to come. 

Æ