Obama Administration's policies on the Travel Industry

While there is much left to shake out from Barack Obama’s recent election, meetings & travel industry professionals have come out in support of the administration's moves thus far.

While nothing has been laid out in detail, the new administration has given the industry a sign of good faith by agreeing to meet with top travel and tourism officials on December 16 to hear their recommendations on how our industry can help spur the economy.

SPOTLIGHT ON POSITIONS
The main issues being considered include the value of the U.S. dollar, open sky agreements, modernizing air traffic control, airline bailouts & merger approvals, TSA overhaul, passenger rights, funding for rail transportation and infrastructure, visa waivers, and promotion of the U.S. as an international tourism destination. Obama’s position on these issues remains to be seen, primarily because his immediate attention will be focused on the state of the economy, the war in Iraq or the state of the health care system.

The Obama Administration does support the Travel Promotion Act, as he was one of the 51 Senators supporting S. 1661 on the Hill. The House has already passed its version of the bill, whose implementation will largely determine which way the wind blows for the travel industry. A huge budget, federal support and promotional campaigns for inbound U.S. tourism all hang in the balance with this bill. He also supports the Airline Passenger Bill of Rights Act of 2007, as he was a co-sponsor, but that’s mostly a matter of party lines.

Obama is focusing his economic recovery strategy on making the biggest investment in the nation's infrastructure since President Eisenhower created the interstate highway system a half-century ago. Obama will scrutinize 'ambiguous' transportation spending, which in years past went out to states under the guise of improving highways and building bridges without definite plans. We might expect some targeted increases in funding for these programs, which could mean good news for the hospitality industry, because new developments and commercial construction typically surround many of these infrastructure projects.

There is no doubt that the main issue determining the future of the industry is the state of the U.S. Dollar. A sagging dollar will boost inbound overseas tourism, while a rising dollar will allow more Americans to travel abroad. Most Americans would prefer a rising dollar and Obama has said that he favors taking immediate measures to bolster its strength.

If the Airlines are planning to beg for bailout like Detroit is now, they can forget about it. Obama can, and will, hang the private industry out to dry if necessary. Basically, the sum of all this is that under an Obama Administration, the industry can expect reasonable help and sane policies, but the days of handouts and ‘advantageous’ legislation are behind us.

One thing you can be sure of with the Obama Administration; Amtrak will do very well. Obama was a co-sponsor of the Passenger Rail Investment and Innovation Act of 2007, which provides for long term funding for Amtrak. It also doesn’t hurt that Joe Biden has been one of Amtrak’s best customers, having commuted to work by Amtrak’s daily service between DC & his home in Delaware for over 35 years.

REACTION FROM TRAVEL INDUSTRY LEADERS

National Tour Association (NTA)
“NTA believes it is the duty of the travel and tourism sector of the national economy to step up immediately and deliver recommendations to President-elect Obama on how travel and tourism can stimulate the national economy. As a first step, this cross-section of travel leaders has been invited to submit ideas and convene to develop the recommendations. A broad cross-section of travel and tourism leaders has been invited to be a part of creating workable solutions for the struggling economy. The participation of more than 20 organizations has been confirmed including leaders representing packaged travel, lodging, travel agents, cruise lines, ground transportation, air transportation, and special interest travel, according to the National Tour Association, which is managing the effort.”

“We believe it is critical to equip President-elect Obama and his administration with the ways in which travel can fuel the U.S. economy,” said NTA President Lisa Simon, CTP. “We know that travel and tourism is a way to quickly inject new jobs, new income and new tax revenues into our national economy. We simply need a unified plan to make it happen.” Strategic partners and leaders within the travel and tourism sector have been asked to prepare their policy and cooperative marketing ideas, share them in advance with the entire group and then attend the summit in Washington, D.C., where the plans can be prioritized and coordinated into pragmatic solutions to assist the economic recovery within the United States. The collective recommendations of the group will be presented to President-elect Obama and his Transition Team promptly thereafter.

National Business Travel Association (NBTA)
NBTA president Kevin Maguire said: “We see great synergies in the goals of our members and those of president-elect Obama, and will work with his Administration to advance those common goals. "Obama’s public diplomacy agenda and promises to work cooperatively with world leaders and businesses are good news for the increasingly multinational business community.
"His emphasis on infrastructure investment bodes well for the long-sought-after upgrade to the Next Generation air transportation system.

"His green economy goals could help airlines, hotels, and ground transportation providers more rapidly deploy services that are both environmentally friendly and economically viable for corporate customers.”

According to many political experts, the next Congress will have its hands full with current pressing transportation issues, but revenue sources for these proposals and projects remain unknown. Obama supports swift passage of a FAA reauthorization bill and believes that “soon we can develop and deliver a modernized air traffic control system. He has often addressed the issue from a passenger point of view, having this summer said, “Airline passengers are sick and tired of delays and cancellations.” Senator Obama would work to build “confidence in the American people that funds will be spent well.” NBTA is working closely with both campaigns to ensure corporate travel issues and concerns are understood. “Travel issues haven’t made it quite to the top tear of the political agenda in Washington, but they are not far away,” said Stewart Verdery, Jr., NBTA Government Relations & Federal Strategies Consultant. “NBTA will continue its work with the new administration to advocate for the policies and proposals that will help make travel more affordable and secure.”

Visa Waiver Program
The current Administration has recently moved to admit seven new countries to the Visa Waiver Program (VWP). Citizens from 34 nations are now able to travel to the United States for 90 days or less without a visa. As Senator, Obama supported the admission of Poland and other countries in Europe, Asia, and South America into the program.

“Given the new Administration’s focus on international cooperation, we’re certain to see additional countries pressing for VWP status,” said Verdery. NBTA has been a leading advocate of strengthening the VWP. Last month, NBTA’s efforts were recognized with an invitation to represent the corporate travel industry at a White House Rose Garden event to acknowledge the advancement of VWP.

“The visa-free travel made possible by the VWP enables the free flow of commerce between the United States and its most important business and trade partners around the world,” said NBTA Executive Director Bill Connors.

Meeting Planners International (MPI-surprisingly quiet)
Tourism Leaders Prepare Recommendations for Obama

Leaders of the travel, tourism and meeting industries will present ideas and recommendations on the economy to U.S. President-elect Barack Obama his transition team and key members of Congress following a December 16 meeting in Washington, D.C.

Strategic partners and leaders within the travel and tourism sector have been asked to prepare their policy and cooperative marketing ideas, share them in advance with the group and then attend the summit in Washington, D.C., where the plans can be prioritized and coordinated into pragmatic solutions to assist economic recovery. The collective recommendations of the group will be presented to Obama promptly thereafter.

Travel Industry Association (TIA)
WASHINGTON, DC -- The Travel Industry Association (TIA) today applauded President-elect Obama's announcement of his top-level foreign policy and national security nominees. Roger Dow, president and CEO of the Travel Industry Association, issued the following statement:

"Protecting the homeland while strengthening America's economy and image in the world is one of the great challenges of our time. TIA stands ready to work with President-elect Obama and his team to leverage travel to create jobs and economic growth and strengthen America's image abroad."

"Senator Clinton, Secretary Gates and Dr. Susan Rice all recognize the need for more robust U.S. public diplomacy efforts, and people-to-people diplomacy is one of our country's most effective tools for winning hearts and minds throughout the world. Whether it is for business, leisure or education, the travel experience is unique in its ability to shape public opinion. Studies show that those who have visited the United States are 74 percent more likely to have a favorable image of the country and its policies in the world.

"We are encouraged with the nomination of Governor Napolitano to head the Department of Homeland Security (DHS). Governor Napolitano knows firsthand how to strike the right balance between security and prosperity at our nation's borders. We are confident that Governor Napolitano can improve upon the progress made by the Department of Homeland Security to date, and we look forward to working with her to ensure that our country strengthens its security and attractiveness to foreign visitors."

FAA Reauthorization: The House of Representatives in September passed legislation, H.R. 2881, the FAA Reauthorization Act of 2007, which lays out a blueprint for how to address the systemic problems that affect our air transportation system. The Senate has passed its version of the bill out of committee, but has yet to consider it on the Senate floor.

Across the aviation industry and in Congress, there is wide agreement that our air transportation system needs to make the transition to a satellite-based navigation system from a radar-based system. In addition, our airports need additional runways and other infrastructure improvements to handle the increasing number of air travelers, a number estimated to reach 1 billion annually by 2015. Enhanced technology will eventually allow more real-time information on the position of aircraft, allowing plans to fly closer together and more efficiently use our airspace.