WASHINGTON, D.C. - The Senate Committee on Commerce, Science, and Transportation held a Competitiveness, Innovation, and Export Promotion Subcommittee hearing titled Tourism in Troubled Times.

Witness List*

The Honorable Harry Reid, United States Senator, Nevada

Panel I

Ms. Mary Saunders, Acting Assistant Secretary for Manufacturing and Services,
U.S. Department of Commerce

Panel II

Mr. Jay Rasulo, Chairman of Walt Disney Parks and Resorts

Mr. Jay Witzel, President and CEO of Carlson Hotels

Mr. Sam Gilliland, Chairman and CEO of Sabre Holdings; parent of Travelocity.com
         
Panel III

Mr. Rossi Ralenkotter, President and CEO of Las Vegas Convention and Visitors Authority

Mr. Chad Prosser, Director of the South Carolina Department of Parks, Recreation, and Tourism

Ms. Judy Zehnder Keller, Owner of the Bavarian Inn Lodge, Frankenmuth, Michigan

*Not Necessarily in Order of Appearance

Key Quotes from Today’s Hearing:

“Nevada has no state income tax, and in 2007, 27 percent of state budget came from revenues generated by the travel industry. Revenues from hotel-room taxes, car rentals and sales taxes fund most of the basic services provided to local governments scattered around the state. The recent decline in visitors to Nevada has unfortunately contributed to the worst state budget shortfall in the state’s history. Simply put, our state depends on visitors. The more you come and enjoy our great state, the better off Nevada is.”
Senator Harry Reid, Senate Majority Leader

“Now is the time for the United States to work on a comprehensive approach to promoting some of our nation’s greatest assets: our small towns and villages, our thriving metropolitan cities, and our beautiful National Parks system.  Solutions are needed now and that is why we are here today. Families, businesses, and communities who rely on this revenue to stay afloat know - we don’t have a moment to wait.”
Senator John D. (Jay) Rockefeller, IV, Chairman of the Commerce, Science & Transportation Committee

“Families are cutting back on vacations to save money. And businesses are cutting back on meetings and events for their employees and customers. When a family decides to forgo a vacation or a business cancels a meeting, there’s a ripple effect across the country. Fewer airline tickets are sold… fewer cars are rented… hotels and lodges rent fewer rooms… tourist attractions have fewer visitors… These are serious challenges.”
Senator Amy Klobuchar, Chairwoman of the Competitiveness, Innovation, and Export Promotion Subcommittee

“The U.S. travel and tourism industry continues to be a key part of our nation’s economy. The United States generates more revenue from travel and tourism than any other country in the world. The Department of Commerce has an active program dedicated to expanding travel and tourism business opportunities for employment and economic growth.”
Ms. Mary Saunders, Acting Assistant Secretary for Manufacturing and Services, U.S. Department of Commerce

“We are only asking the United States to establish what nearly every other major foreign market already has: a nationally coordinated and well-funded travel promotion campaign. It is important to point out that in these times when the Congress is understandably wary of new spending, the Travel Promotion Act would use NO taxpayer dollars. Instead, it would be funded through a small fee collected from overseas visitors, combined with matching funds from the travel industry. This isn’t a free ride for industry. We will be contributing our fair share to make it work.”
Mr. Jay Rasulo, Chairman of Walt Disney Parks and Resorts

“An environment has been created in America where legitimate business travel is being questioned and cancelled. This translates into additional loss of jobs, taxes, and travel-related revenues for an industry that is already hard-hit from the general economic recession.”
Mr. Jay Witzel, President and CEO of Carlson Hotels

“For every dollar spent on travel, the US Travel Association estimates that $2.34 of additional spending cascades through the economy. With that sort of multiplier for a sector that represents $740 billion in spending each year, travel and tourism can provide not just a stimulus, but a jolt, to the U.S. economy if Congress and the Administration were to put policies in place that help, rather than hinder, its recovery.”
Mr. Sam Gilliland, Chairman and CEO of Sabre Holdings; parent of Travelocity.com

“Las Vegas is a microcosm of the entire tourism industry. And while many of the challenges are because of the recession, there are long-term issues we also must address. Every developed nation – except for the United States – operates a nationally coordinated travel promotion campaign. Other countries outspend the United States by enormous amounts when promoting travel and tourism.”
Mr. Rossi Ralenkotter, President and CEO of Las Vegas Convention and Visitors Authority

“Tourism is distinctly different from most large export industries because it is comprised of mostly small to medium-sized businesses, over 90 percent according to the U.S. Chamber of Commerce. Given the fragmented and diverse nature of the industry, no single group or trade association can effectively represent the entire industry abroad without the coordination of the federal government.”
Mr. Chad Prosser, Director of the South Carolina Department of Parks, Recreation, and Tourism

“You might ask how the state of Michigan can justify spending tax dollars on tourism promotion given the huge deficit we are experiencing with the auto industry meltdown. The latest research found that every advertising dollar spent in out-of-state markets over the past four years generated $2.86 in new additional state tax revenues. To repeat, $1 gets you $2.86 in return.”
Ms. Judy Zehnder Keller, Owner of the Bavarian Inn Lodge, Frankenmuth, Michigan

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