The lost decade leads to looming US tourist crisis

Tuesday, 02 Dec, 2010 0

International tourism is not just a big business. It’s also a huge export. And that’s why the US is on the brink of a tourism crisis, many observers increasingly agree.
 

“The United States is losing market share as a tourist destination,” writes Martha C. Wright in Slate.

According to the US Travel Association, the US’s market share of global tourism dropped by almost one third from 2000 to 2009. That means 2.4 million fewer visitors in 2009 than at the beginning of the decade.
 

Foreign tourists bring in US$120 billion to the US economy. The business makes up eight percent of the US’s overall exports, or one quarter of all exports in the services category. Tourism is one area where the US runs a healthy trade surplus.
 

One explanation of why the US is discouraging visitors comes from J. W. Marriott Jr. He largely blames increasingly tight airport security.
 

“We’ve become a risk-averse country,” said the 78-year-old hotel leader at a recent conference on economic growth.
 

Intrusive bureaucracy also discourages visitors, he said. At the same time, places such as Europe are making it easier for foreign visitors.
 

“More Chinese visited Paris last year than the US,” said Marriott. He pointed out that each Chinese traveler spends about $7,000 per US visit compared to $1,200 for each domestic traveler.
He called the last ten years “The Lost Decade” because the US saw a loss of $450 billion in exports and 440,000 jobs because of the decline of foreign visitors.
 

Worldwide, long haul flights are up by one third since 2000, so it’s no problem for foreign visitors to get here. So what is the problem?
 

Problems, as in plural.
 

—Part of America’s tourism problem is marketing, Slate says.” We don’t have any at the national level,” the article says. While states and cities do promotions to their specific areas, there aren’t any agencies promoting the entire US as a country.
 

—Visa requirements. There are three dozen countries on a visa-waiver list but since 9-11, others not on that list go through an intensive process that includes an in-person interview just to visit here for a vacation. In some countries such as Brazil, there are only a handful of offices where personal interviews can take place. That process can take several months just for an interview.
 

—Perception. For the past decade, there’s been a growing overseas sentiment that the US is increasingly becoming “Fortress America” with travelers complaining not only about growing security but also about a general feeling of not being welcome.
 

There have been some positive recent moves towards promoting international tourism.
 

The Travel Promotion Act last year set up the Corporation for Travel Promotion. An initial $10 million was set aside (from fees on travelers coming to the US) to promote travel here. More money is expected from the new agency in the future.
 

"People have a perception of the US as protectionist, arrogant and inhospitable, and I think we need to change that image," said chairman Stephen J. Cloobeck, who is CEO of Diamond Resorts International. "We’re going to jump-start the marketing of America."
 

International visitors are specific in their individual needs. So the agency will target specific groups of people from various countries. One example: marketing to the Chinese market might involve the depth of cultural opportunities available here.
 

Some of the new agency’s money will have to go for the image issue.
 

"We’ve got to overcome the perception that has built up of Fortress America," said Roger Dow, president and chief executive of the US Travel Association.
 

By David Wilkening
 



 

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