Travel Promotion Act Clears Key Committee

USTA Claims Bipartisan Legislation will Help U.S. Economy, Attract Millions More International Visit

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. May 21, 2009

MAY 21, 2009 - Today the Senate Commerce Committee passed the Travel Promotion Act of 2009. Klobuchar is a cosponsor of the landmark legislation that will help stimulate U.S. economic growth, create thousands of new American jobs and generate hundreds of millions of dollars in new tax revenue for communities across the country. Today's action comes just a week after Klobuchar chaired a hearing examining the challenges facing the travel and tourism industry in the midst of the current economic downturn and called on Congress to pass the Travel Promotion Act.

"From the business hotels in the Twin Cities to the lodges on the North Shore, from the scenic Root River bike trail in southeastern Minnesota to the hundreds of fishing resorts on our lakes, Minnesota has an abundance of travel and vacation opportunities," said Klobuchar.

She noted that tourism is the fifth largest industry in Minnesota, generating $11 billion in sales and providing nearly 11 percent of the state's total private sector employment.

The tourism industry employs one out of every eight Americans and generates approximately $1.3 trillion in yearly economic activity nationally.

Nationally, the travel and tourism industry has suffered in the current economy. In 2008, nearly 200,000 travel-related jobs were lost nationally, and the U.S. Commerce Department forecasts that another 247,000 jobs will be lost in 2009.

"When a family decides to forgo a vacation or a business cancels a meeting, there are ripple effects across the economy," said Klobuchar. "Fewer airline tickets are sold, fewer cars are rented, hotels and resorts fill fewer rooms, tourist attractions see fewer visitors, local businesses suffer a decline in sales and workers lose their jobs."

The "Travel Promotion Act" will establish a public-private partnership to promote the United States as a premier international travel destination and communicate U.S. security and entry policies. The legislation specifies that travel promotion would be paid for by private sector contributions and a $10 fee on foreign travelers that enter the United States. The bill is estimated to create $4 billion in economic stimulus and require no funding from the American taxpayer.

The bill could help attract 1.6 million new international visitors, who by spending an average of $4,500 per person, could create $4 billion in new spending and drive $321 million in new federal tax revenue annually. An analysis by the U.S. Travel Association reveals that this program would create nearly 40,000 new American jobs.