Economic stimulus has been the talk of Washington – and the world – for the past several weeks. But one subject has been missing from the discussion so far: the stimulative potential of travel and tourism.
Consider some statistics:
- The World Travel & Tourism Council (WTTC) estimates that travel and tourism generated (directly and indirectly) nearly $6 billion in global economic activity in 2008 – about 10% of worldwide GDP.
- The travel and tourism economy contributes more than 238 million jobs – more than 8% of total employment (WTTC)
- According to the UN World Tourism Organization, 75 countries earn at least $1 billion a year from travel and tourism.
There are more facts and figures here at the WTTC web site.
Even though travel and tourism have declined during the global economic crisis, they remain huge engines of economic growth. In a downturn, it makes more sense than ever to invest in promoting tourism. Yet the United States, with more than $1.4 trillion in travel and tourism GDP (WTTC), does not have an organization with this responsibility at the national level. It’s one of the few developed nations without one.
The U.S. Travel Association estimates the decline in overseas travel to America since 9/11 has cost 46 million visitors, $140 billion in lost visitor spending and $23 billion in lost tax revenue. Had the country tracked global travel trends during this time, the U.S. economy would have created an additional 340,000 jobs in 2007.
Travelport has a big stake in the U.S. travel economy, so these declines affect our business as well.
That’s why Travelport and our industry organizations are aggressively supporting the “Travel Promotion Act.” It would create a public-private partnership to promote travel to the United States and communicate U.S. security and entry policies. It would be funded through private sector contributions and a fee on international travelers who use the Electronic System for Travel Authorization (ESTA) – that is, citizens of countries whose travelers do not need a visa to enter the U.S.
The legislation passed the House easily in 2008 but was held up in the Senate. It is a top industry priority for 2009.
We’re also doing everything we can to make travel easier by advocating for more effective, efficient air travel security. While ESTA, for example, promises to streamline entry into the U.S., it also needs to be implemented well, and communication with international travelers needs to be effective. We’re working with U.S. Customs and Border Protection to get this right.
You can find out more about ESTA by clicking here.
At the same time, the industry supports increased funding for technology and staff at U.S. air and land points of entry, another important step in making it easier to travel to America.
2009 will be a tough year for travel throughout the world. But investment in travel promotion today – along with continued efforts to make travel both efficient and secure – will stimulate the travel economy and ensure a robust recovery once the economy improves.
Jeff
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