Tourism

FEDERAL TOURISM

International visitors to the United States spend an average of $4,500 per person, per trip in the United States. They stimulate economic growth and generate new tax revenues in every state and community without placing a burden on local services. Unlike every other developed country in the world, the US does not have a nationally-coordinated travel promotion campaign to attract international visitors and promote America as a premier travel destination. In the depths of an economic crisis, the consequences stemming from the lack of outreach and promotion are even more apparent. While international travel has boomed over the past several years, with 48- million more worldwide trips booked in 2008 than in 2000, America actually lost 633,000 overseas travelers last year. Loss in overseas visitation since 2000 has cost America $182-billion in lost visitor spending and $27-billion in lost tax receipts. If the United States had simply kept pace with global travel trends, the US economy would have created an additional 245,000 jobs in 2008.

Expedite Implementation of the Travel Promotion Act (TPA)

The Travel Promotion Act (signed into law on March 4, 2010) establishes a public-private partnership to create the first-ever US promotion and communications program aimed at travelers around the world. The Travel Promotion Act is projected to yield millions of new visitors, $4-billion in new economic stimulus, and $320-million in new federal tax revenue. The Congressional Budget Office has reported that the TPA will reduce the deficit by $425-million over the next 10 years.

The TPA was originally drafted two years ago and was written under the assumption that it would pass before the beginning of FY2010 (Oct 1, 2009). As a result, the bill’s five-year authorization and funding mechanism begin in FY2010 and end in FY2014. The intent was to have a full year of FY2010 to appoint the Board of Directors of the new Corporation for Travel Promotion and for the Department of Homeland Security (DHS) to implement the fee collection system established by TPA to fund the Corporation’s first year. Historically, it has taken one year for federal agencies to accomplish similar tasks.

Fiscal Year 2010 is critical because the legislation authorizes $10 million from the fee to be transferred to the Corporation to hire staff, develop marketing plans and conduct other activities that will ensure the long-term success of the program. However, we are extremely concerned that it will take six to nine months for the new fee mechanism to be implemented by DHS. With only six months left in FY2010, it appears that calendar constraints would thus prevent the Corporation from receiving the $10-million in funding through this fee and jeopardize the core objective of the bill.

We strongly encourage Congress to expedite full implementation of the Travel Promotion Act through coordinated efforts with the Department of Homeland Security so as not to further delay the start-up funding necessary to begin operations under the new Corporation for Travel Promotion.

Support Funding for Walk of Fame Repairs

To be honored with a star in Hollywood’s Walk of Fame, the world’s most famous sidewalk, is a tribute as coveted and sought after as any of the entertainment industry’s equally prestigious awards — including the Oscar, Emmy, Grammy, Golden Mike or Tony. And, because it recognizes a life-long contribution of both public and peer appreciation, it is an honor uniquely in a class of itself, a permanent monument of the past, as well as the present. Envisioned in 1953 as a lasting tribute to the personalities who helped make Hollywood the most famous community in the world, the Walk continues today as a superior asset to the city, perpetuating the aura that has made the name “Hollywood” synonymous with glamour, and remains one of the city’s most widely seen tourist attractions. The historic landmark however, is badly in need of repairs, estimated at approximately $4-million.

STATE TOURISM

Travel and tourism generates $82.5 billion annually in California and supports jobs for nearly 900,000 Californians, accounting for $5.2 billion in state and local tax revenues. Tourism is California’s fourth largest employer and fifth largest contributor to the gross state product. Los Angeles County generates approximately $12.2 billion per year in direct travel spending. As a key industry in Hollywood and as a major donor of tourism-related business assessments, the Hollywood Chamber of Commerce urges the State to increase its efforts to maintain this vital industry and ensure that visitors are able to access reliable information on visiting the most famous city in the world – HOLLYWOOD! With an annual CTC marketing budget of $25 million, the Hollywood delegation would like to know how the California Tourism Commission is marketing this worldwide end destination and how we can better work with the Commission.