President Trump’s budget and policy bill delivered a mix of celebration and concern for the travel industry, as long-sought investments in infrastructure and business-friendly tax policies came with steep cuts to Brand USA’s federal funding.
Trump signed the bill into law July 4.
U.S. Travel Association CEO Geoff Freeman praised the law’s investments in air traffic control modernization and staffing for Customs and Border Protection, but he warned that reductions to Brand USA and visa fee hikes risk deterring inbound travel. The bill includes a $250 Visa Integrity Fee for nonimmigrant visas and a near doubling of the ESTA fee from $21 to $40 for Visa Waiver Program travelers. It also slashed Brand USA’s federal matching funds from $100 million to $20 million.
“This legislation is a giant step in the right direction when it comes to improving America’s travel infrastructure and security,” said Freeman. “Bold, necessary investments in air traffic control and Customs and Border Protection will make a meaningful difference in the traveler’s experience.
“The smart investments in the travel process make foolish new fees on foreign visitors and reductions to Brand USA, America’s promotion arm, that much harder to swallow,” he added. “Making America the world’s most visited destination, and capitalizing on the upcoming World Cup and Summer Olympics, requires smarter policy and legislative changes that we are already pursuing.”
“it’s effectively pulling the rug out from under an entire sector of our economy,” writes Spark executive vice president Dulani Porter.
Freeman said that “raising fees on lawful international visitors amounts to a self-imposed tariff on one of our nation’s largest exports: international travel spending. These fees are not reinvested in improving the travel experience and do nothing but discourage visitation at a time when foreign travelers are already concerned about the welcome experience and high prices.”
Fred Dixon, CEO of Brand USA, said that while the organization is “disappointed” with the reduction in federal matching funds the bill, Brand USA “remains committed to our mission and looks forward to opportunities for funding restoration in the future.”
“The current reduction will require a significant recalibration of our resources and programming that is still to be determined,” Dixon said. “But we remain focused on growing legitimate international inbound travel and the vital boost it provides to the U.S. economy, especially with major global events on the immediate horizon like America250 and the FIFA World Cup.”
The American Hotel & Lodging Association (AHLA) praised the bill’s inclusion of tax provisions that it called critical to the hospitality industry.
“This law provides long-term tax certainty and powerful incentives for small business owners and will help business owners re-invest in their communities and create more jobs,” said AHLA CEO Rosanna Maietta. “Quite simply, it’s a game-changer for small businesses across all industries.”
