Speaking at the NYU International Hospitality Industry Investment Conference in early June, Jonathan Tisch, the Chairman and CEO of Loews Hotels & Co. has called upon the travel industry to unite in support of pro-travel policies
Tisch said the industry must apply the lessons it learned in the wake of 9/11 when "an anti-travel political climate severely impacted international travel to the U.S." The industry, urged Tisch, must band together to avoid a second such lost decade.
In the decade after 9/11, the United States lost 68 million visitors, costing the country some $606 billion in traveler spending and 467,000 in lost jobs. While global travel jumped 90 percent during that 10-year period, the United States saw a mere 13 percent growth.
"Ending this ten-year slump required a united industry effort to push for pro-travel policies," said Tisch. "We learned some valuable lessons that we need to put into action again today."
Tisch cited several recent policy rollouts that could be an indicator that the U.S. is returning to a similar anti-travel stance, including "extreme vetting" policies, executive orders on immigration, the ban on large electronics and the potential elimination of Brand USA.
But we should be careful since travel drives the U.S. economy. Last year, travel to the United States generated nearly $246 billion in U.S. exports and helped cut nearly $90 billion off America's trade deficit.
Tisch strongly pushed for continued financial support for Brand USA, which Trump has proposed eliminating in his proposed budget.
"Eliminating Brand USA will increase the federal deficit by $510 million over three years. And by reducing international travel to the U.S., it will also widen America's trade deficit," said Tisch.
[READMORE]READ MORE: Trump's Budget Proposal Would Eliminate Brand USA [/READMORE]
"When destination marketing programs are cut, the explanation is always basically the same. . . some version of 'our region sells itself' so there's no reason to invest," said Tisch. He went on to cite the example of cuts to the Pennsylvania tourism budget. "From 2009 to 2014, the state slashed $125 million in tourism marketing. The result: 37 million fewer tourists and $7.7 billion in lost visitor spending."
Tisch, long an advocate for upgrading the nation's infrastructure, also encouraged stakeholders to serve as partners with Trump as he looks to create a new public-private partnership to jump start new construction projects.
"We need to make sure improving our aviation infrastructure - our airports, runways and other essentials - is front and center," said Tisch. "
He cited the fact that in a list of the world's top 100 airports, the US entered the list at the number 26 spot. "And that's not New York or Chicago or Los Angeles or any of our major gateways."
He also urged the strong support of "replacing our World-War-II-era, radar-based air traffic control system with the satellite-based NextGen. After all, don't you think the technology directing our planes should be at least as sophisticated as the GPS system used by the average Uber driver?"
Modernizing and upgrading airports and aviation systems will help grow travel, while also spurring economic expansion and job creation across America, he said.
At the core of his speech, Tisch called on the travel industry to take a coordinated, proactive stance and for the industry to speak up, especially since many current lawmakers are novices to the ways Washington and even government itself.
"We should not presume they all understand travel's critical role in powering America's economy," said Tisch. "Remember, the Obama Administration didn't exactly take office with an idea of promoting travel. We had our shares of ups and downs - including the president himself calling on companies to cancel trips to Las Vegas."
"Travel drives the U.S. economy," said Tisch. "It's our job to engage the new leadership in Washington to make sure they understand the role we can play in achieving our shared economic goals. If the Trump administration really wants to cut the trade deficit, they'll need our help."
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