In my last post, I wrote about the need for the U.S. to do more at the national level to promote travel and tourism. But some in Congress appear to be more intent on discouraging travel – business travel in particular.
The target of their ire is travel by companies receiving emergency federal loans. The problem is that the impact of their declarations hasn’t been limited to the companies in the financial services industry that are receiving government assistance. It is also discouraging responsible business travel as companies seek to avoid the perception that they’re being extravagant in their travel decisions. This is damaging an industry already in a deep recession.
According to the U.S. Travel Association, meetings, events and incentive travel generate $101 billion in spending, $16 billion in taxes and one million jobs annually. Business-related travel overall generates $240 billion in spending, $39 billion in taxes and 2.4 million jobs.
The global recession has already had a dramatic effect on our industry in the U.S. and around the world. The Commerce Department reports that the U.S. lost 200,000 travel and tourism related jobs in 2008. The U.S. Department of Labor predicts an additional 247,000 job losses this year.
It’s easy to see why. In December, for example, the number of meetings held in Las Vegas was down nearly 17%, and the number of visitors fell 11%. Hotel occupancy in downtown Atlanta – a big convention city – was down 20% in December. Orlando attracted 25% fewer conventions and trade shows during the second half of 2008 than it did during the same period in 2007. Those statistics are repeated in cities around the country.
In the midst of the worst travel recession since 9/11, lawmakers should be encouraging responsible business travel – and all other kinds of travel as well – instead of discouraging it. The U.S. Department of Commerce reports that for every two direct travel jobs, one additional indirect travel job is created. This sounds a lot like economic stimulus to me.
I also want to reinforce the point I made in my last post. We need to promote travel and tourism at the national level, just as the vast majority of developed nations do. And we can do it without spending taxpayers’ money.
At the same time, our industry needs to step up its efforts to educate Congress, the Administration and the public about the vital role that travel and tourism play in our economy – business travel, leisure travel, all kinds of travel. The events of the past few weeks indicate that lawmakers don’t make the connection between business travel and jobs. We need to help connect the dots.
I’m pleased to say that President Obama is one of those who recognize the economic impact of travel. I was with a group of travel industry leaders who met with the President on March 11 to discuss these issues. You can view our press statement here.
The more we do now to promote travel and tourism – not just in the U.S. but around the world – the better off we’ll be when the economy eventually begins to recover.
Jeff
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