Boxer: Passage of Travel Promotion Act Will Create Jobs, Reduce Deficit

Washington, D.C. – U.S. Senator Barbara Boxer (D-CA) today praised the passage of the Travel Promotion Act, bipartisan legislation that will create thousands of jobs and generate economic growth through a nationally coordinated travel promotion campaign to attract more international visitors to the United States. The bill was passed last night by a vote of 78 to 18.

“Tourism is a huge economic driver in California, which is the nation’s most-visited state,” Senator Boxer said. “This legislation will create thousands of jobs in California and across the country by promoting our country as a destination for international visitors. The bill will not only spur economic growth, it will reduce the deficit by $425 million over a decade.”

The average overseas visitor puts over $4,000 into the economy, but since the attacks of September 11, 2001, overseas travel to the United States has decreased, even as worldwide travel increased. In 2009, there were nearly 2.4 million fewer international visitors than in 2000, which resulted in an estimated $214 billion lost in direct visitor spending and hundreds of thousands of lost jobs.

To counter this trend, the Travel Promotion Act will create the non-profit Corporation for Travel Promotion to promote travel to every part of the country. The program will be a public-private partnership, funded by a $10 fee paid by foreign travelers from Visa Waiver Program countries and matching contributions from the travel industry.

The U.S. Travel Association estimates that the bill will bring an additional 1.6 million international visitors annually to the United States, creating 40,000 new jobs in the first year. The Congressional Budget Office has said the bill also will reduce the federal deficit by $425 million over a decade.

As the most visited state in America, California attracts 351 million domestic and international visitors, who in 2008 alone spent $97.6 billion. Travel spending generated $5.8 billion in state and local taxes that year and directly supported 924,000 jobs, according to the California Travel & Tourism Commission.

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