Security measures cost U.S. billions in lost tourism revenue

The war on terror has its costly in many ways. Some of these costs are inevitable, others may be reduced. In evidence: The cost to the United States in lost revenues from tourism since 9/11. Several senators believe it is possible to make the United States again an attractive tourist destination, and they are planning to pass bills to do just that. The Senate Commerce Committee has approved a bill to establish a nonprofit public-private corporation to promote the United States as a tourist destination and clear up misperceptions about U.S. travel policies. The new bill would would also create a new office in the Commerce Department to work with other agencies on fixing visa policies and entry processes that discourage visits.

AP’s Jim Abrams reportsthat visits to the United States from countries outside of Canada and Mexico totaled 21.7 million in 2006, down 17 percent from a peak of 26 million in 2000. In the same period, cross-border travel around the world was up 20 percent. “The global pie of international travel is steadily increasing, while the U.S. share has been slowly decreasing,” said Roger Dow, president and CEO of the Travel Industry Association. Visits to the United States from the six countries which provide the most tourists — Britain, Japan, Germany, France, South Korea, and Australia — have dropped 15 percent since 2000, while travel from those six to other countries was up 39 percent. There were 4.2 million arrivals from Britain last year, down 11 percent from 2000, and 3.7 million visits from Japan, down 27 percent.

“It’s a situation that really is disastrous when you take into account the overall global trends in international travel, and the fact that the U.S. currency makes travel to the country so attractive,” said Adam Sacks, managing director for tourism economics at Oxford, England-based Oxford Economics. The weakening of the dollar against the euro and other currencies makes the money of foreign tourists go further. In a recent report, Oxford Economics said the 17 percent drop in visits since 2000 has cost the United States $100 billion in lost visitor spending, almost 200,000 jobs, and $16 billion in lost tax receipts. The research firm noted that the United States is the only global destination without an ongoing program to promote itself. Greece spends $150 million a year, Australia $113 million, and Britain $90 million.

The Senate bill calls for creating a corporation which would be funded by industry contributions and a $10 user fee levied on travelers from the 27 countries participating in a visa waiver program with the United States. Industry experts, however, say promotion and advertising are not enough, and that both must be accompanied by changes in the visa and entry systems that keep people away. Analysts note that entry problems are not confined to tourists. Investors from countries such as Brazil or India, where it can take months to get a visa to enter the United States, may take their business elsewhere. People willing to pay considerable amounts to study in the United States or receive medical treatment here may consider other options.

Back to the Oxford study: It recommends that the United States expand the visa waiver program and apply the proposed $10 visa waiver fee to both promotion and entry security improvements including hiring more border and customs officers. It said such steps could increase overseas travel to the United States by nearly 1.6 million visitors a year, and yield $8 billion in new visitor spending and $850 million in federal tax revenue.