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Travel Promotion Act Signed Into Law: Will It Help or Hurt International Travel?

USA — on March 8, 2010 2:08 pm

American flag - Travel Promotion ActPresident Obama has signed the Travel Promotion Act into law.

The controversial bill will create a national travel marketing program for the United States partially funded by charging foreign tourists a $10 entry fee.

Supporters of the bill say it will help turn around the United States’ struggling international tourism market. But others fear that it could actually drive away potential tourists and even result in tit-for-tat entrance fees from other countries.

Before the Travel Promotion Act, states were on their own to manage their marketing and outreach campaigns. But now, the United States will have its first national program to highlight and promote the country as a travel destination.

Another key aspect of the bill is focused on better explaining complicated travel and security policies to international visitors.

Cash - $10 entry feeThe bill will establish a non-profit corporation funded through a matching program featuring up to $100 million in private sector contributions and a $10 “entry fee” from Visa Waiver Countries. Visa Waiver Countries are foreign countries whose citizens are not required to get a visa to travel to the United States, and include major tourism markets like Australia, Japan, South Korea, and much of Europe.

Proponents of the bill estimate that the program will generate $4 billion in new consumer spending and reduce the federal deficit by $425 million without any cost to taxpayers.

Learn more about the Travel Promotion Act with: Foreign Tourism to USA Down; Can the Travel Promotion Act Save the Day?

But others claim that the best way to revive foreign tourism is to make visiting the United States less of a hassle and a friendlier experience. The $10 charge is a particular point of contention.

Dollar signSome say that the $10 fee is a non-factor and minimal when compared to the overall cost of a vacation, while others insist that it is just another pain in the neck that could turn tourists off of the United States altogether.

It will likely take five to 12 months for the Department of Homeland Security to set up a system to collect the fee from visitors.

The number of international visitors to the United States has gone down every year since 2001.

What do you think? Is the Travel Promotion Act a good idea? Is there a better way to bring tourists back to the United States? Let us know in the comments below.

By Dan Bence for PeterGreenberg.com.

Related links: CNN, The Guardian

PeterGreenberg.com Links:

  • Dan Brower

    It is a good idea. Costa Rica charges tourists a $ 26.00 Tourist Exit Fee and in 2008 Tourism hit a record level in Costa Rica. The tax obviously has not hurt the tourism business in Costa Rica.

  • Panagringa

    US consulates are so unfriendly to tourists seeking visas to the United States, some decide to avoid even passing through the US to another country. Here is an example. Panama does not require a visa for US tourists and the US charges Panama $132 per person  and making them pay $100 deposit before they will even consider their application. If they are turned down the US consulate keeps the $100 and no explanation is provided as to why they were turned down. This is typical of the treatment of other countries including Chile. I was charged $132 by Chile which explained that the charge was levied because that is the treatment of tourists from Chile going to the US. The additional $10 charge is a big mistake. I have visited over a hundred countries and dealt with visas in many and most welcome US citizens and when cruise ships come into their ports, there are welcoming ceremonies including folkloric dances, songs, banners etc. There are no welcoming banners, no songs, nothing in US ports except non-smiling uniformed security representatives. Visas are so costly that many South Americans who would like to take their children to Disney World for instance find having to buy expensive visas for all of their children and themselves is just too expensive.
    Adding another charge will reduce the number of tourists.