U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

79–010 

" ! SENATE 

111TH CONGRESS

1st Session 

REPORT

2009

111–25 

Calendar No. 71 

TRAVEL PROMOTION ACT OF 2009 

R E P O R T 

OF THE

COMMITTEE ON COMMERCE, SCIENCE, AND 

TRANSPORTATION 

ON

S. 1023 

JUNE 5, 2009.—Ordered to be printed 

Filed, under authority of the order of the Senate of June 4, 2009 


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(II) 

SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION 

ONE HUNDRED ELEVENTH CONGRESS

FIRST SESSION

JOHN D. ROCKEFELLER IV, West Virginia, Chairman 

DANIEL K. INOUYE, Hawaii 

JOHN F. KERRY, Massachusetts 

BYRON L. DORGAN, North Dakota 

BARBARA BOXER, California 

BILL NELSON, Florida 

MARIA CANTWELL, Washington 

FRANK R. LAUTENBERG, New Jersey 

MARK PRYOR, Arkansas 

CLAIRE MCCASKILL, Missouri 

AMY KLOBUCHAR, Minnesota 

TOM UDALL, Colorado 

MARK WARNER, Virginia 

MARK BEGICH, Alaska 

KAY BAILEY HUTCHISON, Texas 

OLYMPIA J. SNOWE, Maine 

JOHN ENSIGN, Nevada 

JIM DEMINT, South Carolina 

JOHN THUNE, South Dakota 

ROGER F. WICKER, Mississippi 

JOHNNY ISAKSON, Georgia 

DAVID VITTER, Louisiana 

SAM BROWNBACK, Kansas 

MEL MARTINEZ, Florida 

MIKE JOHANNS, Nebraska 

ELLEN DONESKI, Chief of Staff 

JAMES REID, Deputy Chief of Staff 

BRUCE ANDREWS, General Counsel 

CHRISTINE KURTH, Republican Staff Director and General Counsel 

PAUL J. NAGLE, Republican Chief Counsel 

TODD BERTOSON, Republican Senior Counsel 


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Calendar No. 71 

111TH CONGRESS REPORT " ! SENATE 1st Session 111–25 

TRAVEL PROMOTION ACT OF 2009 

JUNE 5, 2009.—Ordered to be printed 

Filed, under authority of the order of the Senate of June 4, 2009 

Mr. ROCKEFELLER, from the Committee on Commerce, Science, and 

Transportation, submitted the following 

R E P O R T 

[To accompany S. 1023] 

The Committee on Commerce, Science, and Transportation, to 

which was referred the bill (S. 1023) to establish a non-profit corporation to communicate United States entry policies and otherwise promote leisure, business, and scholarly travel to the United 

States, having considered the same, reports favorably thereon with 

amendments and recommends that the bill (as amended) do pass. 

PURPOSE OF THE BILL

The purpose of the Travel Promotion Act of 2009, as reported, is 

to increase international travel to all areas of the United States, 

communicate United States travel policies overseas, and make 

entry procedures into the United States more efficient and welcoming. 

BACKGROUND AND NEEDS

Travel and tourism generates approximately $1.3 trillion in economic activity in the United States every year. The United States 

travel and tourism industry is one of the nation’s largest employers 

with approximately 8.3 million direct travel-generated jobs. According to the Department of Commerce (DOC), international travel receipts (travel-related tourism spending, including passenger fares) 

in the United States were $142.1 billion in 2008, which surpassed 

the previous record of 2007 by 16 percent. The bulk of these dollars 

came from purchases made by international visitors, which totaled 

$110.5 billion in 2008. Travel and tourism exports (food, lodging, 


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recreation, gifts, entertainment, transportation, etc.) accounted for 

eight percent of all U.S. exports and 27 percent of services exports. 

In percentage terms, U.S. travel and tourism related exports 

showed the strongest growth for Italy (up 38 percent), France (up 

38 percent), Argentina (up 32 percent), Netherlands (up 32 percent), and China (up 31 percent). The top five international markets for U.S. travel and tourism exports include Canada ($18.7 billion), United Kingdom (17.5 billion), Japan ($15.1 billion), Mexico 

($9.8 billion), and Germany ($6.5 billion). According to the U.S. 

Travel Association, an increase of one percent in international travel market share would produce a $3.9 billion increase in payroll receipts. While the tourism industry continues to be vital to the U.S. 

economy, the United States’ share of the world market of international tourism is in decline. The U.S. Travel Association noted 

that since 9/11, the 17 percent decline in America’s share of international travelers has resulted in the loss of more than 200,000 

jobs and nearly $100 billion in lost visitor spending. According to 

the DOC, in 1992, the United States attracted 9.4 percent of all 

international tourist arrivals from around the world. In 2007, the 

United States attracted only 6.2 percent of total international arrivals. Federal officials and travel and tourism industry executives 

have been grappling with how to reinvigorate the tourism industry 

to recapture lost world market share. Officials and experts note 

two issues that contribute to the decline and need to be addressed: 

(1) lack of a coordinated international tourism advertising campaign; and (2) increased difficulty for international visitors to gain 

entry to the United States. 

The Federal government recognizes the importance of travel to the 

U.S. economy. The DOC has taken an active role to promote international travel to the United States, but Departmental emphasis 

on specific promotions has waxed and waned over time. In addition, 

following September 11, 2001, the U.S. government increased border security dramatically, which resulted in a significant decrease 

in the number of visitors to the United States. Recently, the State 

Department and the Department of Homeland Security (DHS) have 

recognized the need to make the visa and entry process more efficient and welcoming for foreign visitors, while maintaining border 

security. In 2006, former Secretary of State Condoleeza Rice and 

former Secretary of Homeland Security Michael Chertoff initiated 

a joint agreement, the Rice-Chertoff Joint Vision to Ensure Secure 

Borders and Open Doors (Rice-Chertoff Joint Vision), to utilize 

technology and eliminate inefficiencies to improve border security 

and the ability for international travelers’ to participate in United 

States tourism and border security. Despite these efforts, the travel 

industry continues to push for greater reforms. 

The Economic Crisis and the Impact on Business Travel. Industry 

experts believe that the travel and tourism industry could lose 

nearly 250,000 travel-related jobs in 2009 due to the economic 

downturn and the growing public perception that business travel is 

wasteful and unethical. A report commissioned by The Economist 

and released on February 10, 2009, found that executives will 

make fewer, shorter, and cheaper business trips in 2009 and prefer 

basic efficiency over luxury services. Similarly, a recent survey by 

the Association for Corporate Travel Executives, found that 60 percent of American businesses would avoid taking business trips to 


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an exotic locale to avoid public backlash, even if the proposed location were cheaper. 

History of Federally Funded International Travel Promotion. Federal promotion of tourism in the United States dates back to the 

establishment of the U.S. Travel Bureau in 1937. However, only in 

the past 40 years has the DOC had an office or administration that 

promotes U.S. tourism to foreign nationals through coordinated advertising. Enacted in 1961, the International Travel Act required 

the Secretary of Commerce, through the establishment of the U.S. 

Travel Service (USTS), to carry out a program that encouraged 

travel to the United States by foreign nationals. Appropriations directed to the USTS increased until 1977, when Congress and the 

White House began scaling back the government’s role in advertising. Federal funding for advertising was eliminated in 1996, 

when Congress abolished the U.S. Travel and Tourism Administration (USTTA), the successor of USTS. Between 2001 and 2003, 

total tourism receipts dropped almost 12 percent, and tourism-related industries lost approximately 390,000 jobs. Congress decided 

to reinitiate Federal tourism advertising in 2003 in response to the 

downturn. The FY 2003 Consolidated Appropriations Resolution 

(P.L. 108–7, Sec. 210), authorized the Secretary of Commerce to 

‘‘award grants and make direct lump sum payments in support of 

an international advertising and promotional campaign developed 

in consultation with the private sector to encourage individuals to 

travel to the United States consisting of radio, television, and print 

advertising and marketing programs.’’ This law also established 

the United States Travel and Tourism Advisory Board (USTTAB) 

and provided a one-time $50 million appropriation, though $44 million was later rescinded. The USTTAB, re-chartered in August 

2005 and again in September 2007, is comprised of up to 15 senior 

travel and tourism executives from across the United States. These 

members advise the Secretary of Commerce on how best to increase 

the number of international visitors to the United States and make 

sure that the share of the country’s international receipts continues 

to grow. In addition, the board advises the Secretary on the creation of a national tourism policy. On September 5, 2006, the 

USTTAB issued a report to the DOC entitled, Restoring America’s 

Travel Brand: A National Strategy to Compete for International 

Visitors, in which it recommended actions in the following four 

areas to help improve America’s standing in the international travel market. Its recommendations are summarized below. 

Barriers to Travel. The USTTAB report recommended removing 

unnecessary barriers to travel. The report highlighted concerns 

about the current waiting periods for legitimate travelers. The 

USTTAB noted that the Nonimmigrant Visa Program is understaffed. It cited a General Accountability Office report that found 

almost half of the State Department’s 211 visa-issuing posts reported maximum wait times for visa interviews of 30 days or more. 

The USTTAB was particularly concerned about the long waits in 

Brazil, China, India, Mexico and Venezuela. Since the report was 

released, the State Department has greatly improved its interview 

wait times. 

Creating a Welcoming First Impression. The report contained numerous suggestions about how to make the first arrival experiences 

of international travelers more welcoming. The USTTAB report recVerDate Nov 24 2008 23:23 Jun 05, 2009 Jkt 079010 PO 00000 Frm 00005 Fmt 6659 Sfmt 6602 E:\HR\OC\SR025.XXX SR025

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ommended fully staffing the Customs and Border Patrol (CBP) and 

the Transportation Security Administration (TSA) to reduce wait 

times at inspection points. Another problem discussed in the report 

was the delay caused by re- screening passengers by TSA. The report noted the examples of Canada and the Netherlands as countries that prioritized efficient inspections and succeeded in attracting more travelers because of the changes. Members of the 

USTTAB and other industry participants have offered their expertise in managing waiting lines and staffing patterns to Federal 

agencies interfacing with travelers. The U.S. Travel Association 

began discussions with the Under Secretary of State for Public Diplomacy and Public Affairs in that effort. The travel and tourism 

industry also has offered to advise Federal agencies on signage and 

the use of international symbols to direct and prepare travelers for 

the inspection process. Several leading travel companies stated 

their willingness to loan customer service/hospitality experts to 

provide training for CBP officers at the Federal Law Enforcement 

Training Center in Georgia. 

Provide a Stronger Voice for Travel and Tourism in Government. 

The USTTAB report found that the countries that claim the largest 

share of the growth in the international travel market are those 

that have either ministries of tourism or other governmental entities that help coordinate tourism policy decisions. The United 

States, by contrast, has neither a dedicated office of tourism nor an 

official to advocate at the highest policy levels. The USTTAB report 

recommended the creation of an office with the power to coordinate 

government policy to enhance the nation’s competitive standing in 

the global travel market. That Federal office would: 

Serve as an institutional home and voice for the industry; 

Energize the interagency process for travel and tourism through 

an elevated Tourism Policy Council, with ex officio status for private sector representatives, and ensure all government decisions 

potentially affecting this industry receive early attention in the 

interagency process; 

Identify existing private sector advisory committees that included 

representatives from the tourism industry, while widely sharing 

their recommendations across agencies and with other private sector groups and the public; and Coordinate the roles of other government agencies to more effectively expand travel and tourism promotion while addressing infrastructure needs and development. 

Avoid Inappropriate Taxes, Fees, and Regulations. The USTTAB 

report argued that Federal, state, local, special entity and foreigngovernment imposed taxes and fees on rental cars, commercial 

aviation, hotels and restaurant meals, among other services, increase the cost of travel and can dampen demand for inbound travel. In the report, the USTTAB asked the DOC to advocate against 

discriminatory taxing structures and to work within the interagency process to discourage travel taxes imposed by international 

authorities when the revenue raised has no clear benefit or connection to the travel and tourism industry. 

In addition, the report reiterated and supported the airline industry’s request for a review of the CBP rates and charges based 

on costs, due to concerns about further increasing costs on international travelers. 


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Travel Promotion Activity by States. Many States invest significant time and resources to promote tourism. According to the U.S. 

Travel Association, the projected State tourism office budget for 

2007–2008, for all 50 States, is $869 million. The average State 

budget is $17 million. For most States, however, only a small portion of their budgets is designated for international advertising and 

sales promotions. State international promotions generally focus on 

a limited number of attractions in the state and target countries 

with likely visitors. States rarely work in conjunction with their 

neighbors to cross-promote destinations and encourage longer, 

more expansive visits to the United States. Moreover, many States 

cannot afford large international initiatives and therefore foreign 

visitors are less likely to know about and travel to such States. 

A national travel promotion program would be well positioned to 

spotlight a range of travel destinations and tourist options throughout America. States that do not have the resources to target international travelers would benefit from increased exposure through 

a national campaign. 

In addition, State-operated promotion programs have neither the 

resources nor the incentive to address international travelers’ concerns and questions regarding the U.S. visa application process and 

entry procedures. As the USTTAB pointed out, the United States’ 

visa and entry procedures have created the perception that international travelers are not welcome to the United States. Some analysts contend that a national promotion program operated with 

input from the DOC, the State Department, and the DHS would be 

in a position to ameliorate the concerns of international travelers 

over Federal government processes. 

SUMMARY OF PROVISIONS

S. 1023 would establish a nonprofit corporation (Corporation) to 

create and execute a nationally coordinated travel promotion program. The program’s purpose would be to accurately communicate 

the Nation’s travel policies, to encourage travel to the United 

States, and to provide international exposure for areas of the 

United States that do not have the resources to promote themselves overseas. The Corporation would be governed by an 11-member board of directors appointed by the Secretary of Commerce, 

which consists of representatives from States, the Federal government, and the sectors of the travel industry. In the first year, the 

Corporation would be provided $10 million from moneys collected 

from travelers under the Electronic System for Travel Authorization (ESTA) system currently being established by the DHS. After 

FY 2010, in order to be entitled to receive Federal funding, the 

Corporation would be required to raise non-Federal money and inkind matching contributions at the rate of 50 percent in fiscal year 

2011 and 100 percent in the subsequent years. 

In addition, the Travel Promotion Act would establish an office 

in the DOC known as the Office of Travel Promotion. The Office 

would serve as a liaison to the Corporation, work with the Secretaries of State and Homeland Security to ensure that international 

visitors are processed efficiently, and to promote travel to the 

United States. 


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LEGISLATIVE HISTORY

The Subcommittee on Competitiveness, Innovation and Export 

Promotion on May 13, 2009, held a hearing on the Travel Promotion Act of 2009, as well as the economic and security issues relevant to promoting travel to America. The Subcommittee heard testimony from representatives of the travel industry and State tourism agencies regarding their perspectives as to the state of the 

travel industry, difficulties that travelers face coming to the United 

States, and recommendations for encouraging international travel 

to America. 

On May 12, 2009, Senator Byron Dorgan introduced S. 1023, the 

Travel Promotion Act of 2009, which was referred to the Committee 

on Commerce, Science, and Transportation. Chairman Rockefeller 

was an original cosponsor of the measure. When S. 1023 was considered in executive session, Senators Ensign, Inouye, Martinez, 

Klobuchar, Begich, Udall of New Mexico and Vitter also were cosponsors of the legislation. 

On May 20, 2009, the Committee met in an open executive session to consider S. 1023. Senator Dorgan offered an amendment 

that made technical corrections to the legislation. 

The Travel Promotion Act of 2009, as amended, was accepted by 

voice vote and the Committee ordered the bill be reported. 

ESTIMATED COSTS

In compliance with subsection (a)(3) of paragraph 11 of rule 

XXVI of the Standing Rules of the Senate, the Committee states 

that, in its opinion, it is necessary to dispense with the requirements of paragraphs (1) and (2) of that subsection in order to expedite the business of the Senate. 

REGULATORY IMPACT STATEMENT

In accordance with paragraph 11(b) of rule XXVI of the Standing 

Rules of the Senate, the Committee provides the following evaluation of the regulatory impact of the legislation, as reported: 

Number of persons covered 

The formation of the Corporation would require representatives 

of various sectors of the travel industry to participate on its board 

of directors. The general travel and tourism industry will not be 

impacted by S. 1023 directly, unless the Corporation chose to initiate a referendum under Section 6. At that point, impacted members of the travel and tourism industry would participate in a referendum and, if an assessment is approved, pay the assessment. 

Economic impact 

S. 1023 is not expected to have an adverse impact on the Nation’s economy. Rather, promoting international travel to the 

United States through the creation of the Corporation and establishing an Office of Travel Promotion within the DOC should substantially increase the number of international travelers to America, which will result in economic growth in the travel industry. 


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Privacy 

S. 1023 would have no anticipated impact on the privacy rights 

of individuals. 

Paperwork 

In general, there will not be an increase in paper work for members of the travel and tourism industry. If the Corporation initiates 

a referendum and assessment under Section 6, then affected companies would need to submit associated paperwork. 

SECTION-BY-SECTION ANALYSIS

Section 1. Short title 

The section cites the short title of the bill as the ‘‘Travel Promotion Act of 2009.’’ 

Section 2. The Corporation for Travel Promotion 

The section establishes the Corporation for Travel Promotion as 

a nonprofit corporation governed by an 11-member board of directors appointed by the Secretary of Commerce. The members shall 

represent State and local interests, the Federal government, the 

small business community, hotels, restaurants and retail businesses, air transportation, attraction businesses, the intercity passenger railroad business, and travel distribution services. The 

members of the board are required to have professional expertise 

in travel and international travel promotion and marketing, and to 

broadly represent all regions of the United States. No member of 

the board may be considered a Federal employee by virtue of his 

or her service on the board. 

The board shall appoint an executive director and other officers 

who shall be responsible for hiring staff necessary to carry out the 

mission of the Corporation. No political test or qualification shall 

be used in personnel actions with respect to officers or employees 

of the Corporation. The Corporation may not contribute to or otherwise support any political party or candidate for elective public office. The Committee further intends that the Corporation not engage in activities to directly or indirectly influence legislation. 

The Corporation must develop and implement a plan to: (1) provide information to travelers, tour operators, and other international travel stakeholders, including materials provided by the 

Federal government concerning entry requirements and other information that would allow travelers to better navigate the process 

of entering the United States; (2) counter and correct international 

misperceptions regarding United States travel policy; (3) maximize 

the economic and diplomatic benefits of travel to America through 

promotional activities; (4) ensure that the Corporation’s promotional efforts benefit all 50 states and the District of Columbia, 

including areas not traditionally visited by international travelers; 

and (5) prioritize the use of Corporation resources towards countries and potential travelers that are most likely to travel to America. In order to carry out its mission, the Corporation is empowered 

to contract with public and private entities hire or accept voluntary 

services of consultants and experts, and such other actions as may 

be necessary. Promotional expenditures of over $25,000,000 must 


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be authorized by a vote of at least 2/3 of the board at a meeting 

at which six of more members are present. 

Meetings of the board must be open to the public with the limited exception that portions of a meeting may be closed for the period of time necessary to preserve the confidentiality of commercial 

or financial information or to discuss legal matters. An independent accounting firm must conduct an annual audit of its operations, and the Corporation must provide the Comptroller General 

and the Congress full and complete access to its books and records. 

Section 3. Accountability measures 

The section requires the Corporation’s board to establish annual 

objectives for the Corporation subject to approval by the Secretary 

of Commerce and establish a marketing plan for each fiscal year. 

It also must submit an annual budget to the Secretary with an explanation of any expenditure in excess of $5 million, which shall be 

made available to the public. The Corporation must submit an annual report to the Secretary of Commerce for transmittal to Congress detailing its operations, activities, financial conditions, and 

accomplishments, as well as an objective and quantifiable measurement of the Corporation’s progress on an objective-by-objective 

basis, and an explanation of the reason for any failure to achieve 

an objective established by the board. 

Section 4. Matching public and private funding 

The section establishes a fund in the Treasury known as the 

Travel Promotion Fund (Fund). For fiscal year 2010, the Corporation shall be provided up to $10 million from the ESTA to cover its 

initial expenses and activities under the Act. Subsequently, the 

Secretary of Treasury shall transfer not more than $100,000,000 in 

fees collected pursuant to section 5 of the Act to the Fund. Based 

on the amount of private industry contributions raised by the Corporation, the Secretary of the Treasury may distribute to the Corporation matching moneys from the Fund. At least 20 percent of 

the private-sector contributions must be in cash and remaining 

contributions may be in-kind contributions such as television advertising time, advertisement space or services calculated at the 

fair market value of such goods or services. The Corporation shall 

have the right to refuse any contribution that is not useful or inappropriate. For fiscal year 2011, the Corporation must provide 

matching funds from non-Federal sources equal to 50 percent of the 

amount received from the government. After fiscal year 2011, the 

Corporation must provide matching funds from non-Federal 

sources equal to 100 percent of the amount received from the government. Matching Federal funds will not exceed $100 million per 

year. To the extent that industry contributions entitle the Corporation to more matching money than is available in the Fund in a 

given year, the value of contributions may be carried forward for 

matching purposes in subsequent years. 

Section 5. Travel Promotion Fund fees 

The Secretary of the Department of Homeland Security shall establish and collect a fee from the ESTA, which will include a $10 

fee for the matching funds for the Corporation. The authorization 


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to collect the fee for the Travel Promotion Fund will expire on September 30, 2014. 

Section 6. Assessment authority 

The Corporation may impose an annual assessment on the 

United States travel industry, other than airlines and small businesses, of up to $20 million. Prior to initiating such an assessment, 

the members of the industry that would be assessed must agree to 

such an assessment by referendum. The Corporation shall establish 

a means of collecting the assessment and may bring suit in Federal 

court to compel compliance with an assessment. Pending disbursement of the funds assessed, the Corporation may invest the funds 

in any interest-bearing account. 

Section 7. Office of Travel Promotion 

The section establishes the Office of Travel Promotion in the 

DOC. The office would serve as liaison to Corporation, support and 

develop programs to increase the number of international visitors 

to the United States, support state, regional, and private sector initiatives to promote travel to and within the United States, and 

work with the Departments of State and Homeland Security to ensure that international visitors are processed efficiently. Within a 

year after the date of enactment, the Secretary shall transmit a report to Congress describing the office’s work with the State Department and DHS to ensure that international visitors are processed 

efficiently. 

Section 8. Research program 

The section amends the International Travel Act of 1961 and requires that the Office of Travel and Tourism Industries to expand 

its research and development activities in support of promoting 

international travel to the United States, including expanding access to official Mexican travel surveys data, improving the DOC’s 

Survey of International Travelers, developing estimates of international travel exports on a State-by-State basis, and evaluating 

the success of the Corporation in achieving the objective set forth 

in the Act. 

Æ 


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