To direct the Secretary of State to enhance diplomatic relations with foreign countries and to promote domestic business interests abroad by establishing a grant program to promote international travel to the United States.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Improving Public Diplomacy through 
International Travel Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The United States has experienced a 17 percent decline 
        in overseas visitors since September 11, 2001.
            (2) Business travel to the United States fell 10 percent 
        from 2004 to 2005 while Europe witnessed an 8 percent increase 
        over this same time period.
            (3) The United States market share of international travel 
        has declined from 7.5 percent before September 11, 2001, to 
        about 6 percent in 2007.
            (4) The economic impact of declining United States market 
        share has resulted in 60 million fewer travelers, 194,000 lost 
        jobs, $94 billion in lost spending, and $15.6 billion in lost 
        tax receipts.
            (5) While in 2007 the United States will spend less than $4 
        million on international travel promotion, currently Greece 
        spends $151 million, Mexico spends $149 million, Australia 
        spends $113 million, the United Kingdom spends $80 million, and 
        Canada spends $60 million.
            (6) In a recent survey by the Discover America Partnership, 
        international travelers ranked the United States as having the 
        ``world's worst'' entry process, and 66 percent of travelers in 
        the survey feared that a simple mistake could lead to being 
        detained for hours or worse.
            (7) The perception around the world is that the United 
        States does not welcome international visitors, but that 
        perception could be changed by adopting an international travel 
        promotion program.
            (8) An international travel promotion program can expect a 
        6:1 return on investment.
            (9) An international travel promotion program can be an 
        effective tool to enhance the United States public diplomacy 
        efforts.

SEC. 3. ESTABLISHMENT OF GRANT PROGRAM.

    (a) In General.--In order to enhance diplomatic relations with 
foreign countries and promote domestic business interests abroad, the 
Secretary of State (in this Act referred to as the ``Secretary''), 
acting through the Under Secretary of State for Public Diplomacy and 
Public Affairs, shall establish a competitive grant program to promote 
international travel to the United States in foreign countries.
    (b) Range of Grant Monetary Amounts.--No grant shall be less than 
$150,000 or more than $1,000,000.
    (c) Use of Grant Funds.--
            (1) In general.--A recipient of a grant under this Act 
        shall use the funds to develop a promotion program focused on 
        the overseas markets described in paragraph (2) to encourage 
        international travel to the United States and to effectively 
        communicate United States entry requirements, including 
        required documentation, fees, and processes.
            (2) Phase-in of markets.--The promotion programs described 
        in paragraph (1) shall target, in each of the following fiscal 
        years that begin after the date of enactment of this Act, the 
        following markets:
                    (A) In the first fiscal year, Canada.
                    (B) In the second fiscal year, Canada and Mexico.
                    (C) In the third fiscal year, Canada, Mexico, and 
                the United Kingdom.
                    (D) In the fourth fiscal year, Canada, Mexico, the 
                United Kingdom, and Japan.
                    (E) In the fifth fiscal year, Canada, Mexico, the 
                United Kingdom, Japan, and Germany.
    (d) Eligibility.--In order to be eligible to receive a grant under 
this Act, an entity shall prepare and submit an application at such 
time, in such form, and with such information and assurances as the 
Under Secretary of State for Public Diplomacy and Public Affairs may 
require, including a description of the populations and foreign 
countries targeted by the promotion program, the marketing strategy, 
how the entity intends to execute its promotion program, and the 
expected return on investment.
    (e) Matching Requirement.--
            (1) In general.--As a condition of receipt of a grant under 
        this Act, the grant recipient shall provide (directly or 
        through donations from public or private entities) non-Federal 
        matching funds, which may include in-kind donations of goods 
        and services valued at their fair market rate, in an amount 
        equal to the amount of the grant.
            (2) Special rule for in-kind donations.--Of the amount of 
        non-Federal matching funds required to be provided by each 
        grant recipient under paragraph (1), not more than 25 percent 
        shall be provided through in-kind donations of goods and 
        services.
    (f) Reservations.--The Secretary shall reserve 20 percent of the 
funds used to award grants under this Act for grants for promotion 
programs for destinations that do not currently have the resources to 
market themselves internationally.
    (g) Reports.--Not later than 6 months after the end of each fiscal 
year in which grants were awarded by the Secretary under this Act, the 
Secretary shall submit a report to Congress on--
            (1) whether the promotion programs increased the number of 
        international travelers from the targeted countries;
            (2) the return on investment analysis of the grant program; 
        and
            (3) recommendations for changes in law necessary to improve 
        communication about United States entry requirements, including 
        required documentation, fees, and processes.

SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There is authorized to be appropriated $10,000,000 
for grants under this Act for each of the first 5 fiscal years that 
begin after the date of enactment of this Act.
    (b) Carry Over.--Amounts appropriated pursuant to the authorization 
of appropriations under subsection (a) shall remain available until 
expended.

Summary: Improving Public Diplomacy through International Travel Act - Directs the Secretary of State to enhance diplomatic relations with foreign countries and promote domestic business interests abroad by establishing a grant program to promote international travel to the United States.

Directs a grant recipient to develop a promotion program to encourage international travel to the United States and to effectively communicate U.S. entry requirements, including required documentation, fees, and processes.

Sets forth the following market phase-ins: (1) year one, Canada; (2) year two, Canada and Mexico; (3) year three, Canada, Mexico, and the United Kingdom; (4) year four, Canada, Mexico, the United Kingdom, and Japan; and (5) year five, Canada, Mexico, the United Kingdom, Japan, and Germany.

Reserves 20% of grant funds for promotion programs for destinations that lack the resources to market themselves internationally.