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Statement of Geoff Freeman, Executive Director
Discover America Partnership

Before the Subcommittee on International Organizations, Human Rights, and Oversight
Committee on Foreign Affairs
United States House of Representatives

"WELCOME TO AMERICA?"
March 20, 2007

Let me first thank Chairman Delahunt, Ranking Member Rohrabacher and members of the Subcommittee for holding today's hearing and taking a critical look at America's broken travel system. My name is Geoff Freeman, and I am the executive director of the Discover America Partnership. The Partnership was launched last year by some of America's foremost business leaders to highlight the unique role that travel can play in bolstering America's economy, security and public diplomacy efforts.

Our country is in the midst of a complex travel crisis that is having an enormous impact on our economy. At a time when the number of travelers worldwide is at an all time high, the number of overseas travelers visiting the U.S. remains well below pre-9/11 levels. In 2000 the U.S. market share of the $6 trillion worldwide travel market stood at 7.5 percent; by 2006 that share had dropped to 6.1 percent. The result is a loss of nearly 60 million visitors over five years, $94 billion in spending nearly $16 billion in tax revenue and approximately 194,000 jobs according to the Travel Industry Association.

In total numbers, the U.S. has experienced a 17 percent decline in overseas visitors since 9/11. In 2000, the U.S. welcomed approximately 25 million Canadians and Mexicans and approximately 25 million overseas visitors. In 2006, the U.S. returned to 50 million visitors, but the make-up was far different: approximately 30 million Canadians and Mexicans, but only 20 million overseas visitors. Overseas visitors tend to stay longer, spend more and can play a critical role in strengthening America's image around the globe by engaging in people-to-people diplomacy.

Declining visitation to the U.S. is not limited to tourists. All forms of travel - business, student and medical - have witnessed a decline. From 2004 to 2005, for example, business travel to the U.S. fell 10 percent according to the World Travel Market. Over this same time period, business travel to Europe increased by eight percent.

Six countries - the UK, Japan, South Korea, Germany, France and Australia - represent the top source markets for long-distance travelers to the U.S. Between 2000 and 2005, fewer people came to the U.S. from the UK, Japan, Germany and France. While we did see a 6.5 percent increase in arrivals from South Korea, the UK experienced an 18.9 percent increase in travel from Korea; Canada experienced a 34.5 percent increase; Australia a 56.3 percent increase; Russia a 58.7 percent increase and Turkey a 451.2 percent increase in arrivals from South Korea. Similarly, the U.S. experienced a 3.5 percent increase in arrivals from Australia, but Canada experienced a 15.8 percent increase; the UK saw a 17.7 percent increase; Japan a 44.5 percent increase; Hong Kong a 49.1 percent increase; and Vietnam a 324.2 percent increase. So while the U.S. did experience modest increases in arrivals from two of our top six top source markets between 2000 and 2005, it's painfully clear that other countries are winning the highly competitive fight for the world's travelers.

The ripple effect of this downturn in travel is significant economically - the potential loss in spending, employment, payroll and tax receipts - as well as diplomatically - fewer opportunities to compete for hearts and minds around the world.

The Discover America Partnership believes that travel is a critical component of America's economic security, but we also believe that travel is a critical component of our national security and public diplomacy efforts.

Last November, the Partnership commissioned RT Strategies, a prominent, bipartisan polling firm, to conduct a survey of more than 2,000 international travelers. The study sought to gauge travelers' perceptions of the U.S. visa and entry process, and how opinions of America differ between those who have visited our country and those who have not. The results, which have been covered extensively by media around the world, were significant.

Among the study's key findings:

The U.S. entry process is considered the "world's worst" by travelers

• Travelers rate America's entry process as the "world's worst" by greater than a 2:1 margin over the next-worst destination area.
• The U.S. ranks with Africa and the Middle East when it comes to traveler-friendly paperwork and officials.
• 54 percent of international travelers say that immigration officials are "rude."
• Travelers to the U.S. are more afraid of U.S. government officials (70%) than the threat of terrorism or crime (54%).
• Two-thirds of travelers surveyed fear they will be detained at the border because of a simple mistake or misstatement.
• Reports of bad treatment at the point of entry have as much an impact on America's image as news reports in the foreign media or comments made by foreign government officials.

By deterring visitors, the U.S. is missing an enormous diplomatic and economic opportunity

• Those with experience visiting America are 74 percent more likely to have an extremely favorable opinion of the country versus those who have not visited recently.
• 63 percent of travelers feel more favorable towards the U.S. as a result of their visit.
• 61 percent agree that, once a person visits the U.S., they become friendlier towards the country and its policies.
• Negative attitudes about U.S. treatment of visitors are having a much larger effect on keeping travelers away from the U.S. than negative attitudes about U.S. policies in the world.
• Nearly nine in 10 travelers tell their friends, relatives about their travel experiences most or all of the time.

Minor changes in the U.S. treatment of foreign business and leisure travelers would yield substantial gains

• In every destination criteria but the point of entry experience, international travelers rank America in the top three. Travelers want to come to the U.S.
• Travelers are willing to wait an average of 46.5 days to get a visa to visit the U.S - 15 days beyond U.S. State Department standards, but far less than current wait times in many countries.
• Travelers' expectations include clear communications, respect and courteous treatment.

Anecdotal evidence uncovered in focus groups, media reports and conversations as well as empirical evidence support the findings from our survey. From companies like Exxon-Mobile that are looking to hold major meetings in other countries because they can not get their own workers back in to the U.S., to universities that have seen dramatic declines in applications from international students, to other countries being chosen over the U.S. to host major international sporting events - such as a Pan American games coming up this summer that would have contributed $1-$2 billion in economic activity for the city of San Antonio - America is no longer a destination of choice. Whether perceptions are based in truth or not they have a way of becoming reality. The reality today is that travelers are choosing other destinations - largely because of the U.S. entry experience. We must do something to reverse this trend.

Security is America's Number One priority. However, the Discover America Partnership does not believe that inefficiencies should be mistaken for security. Long lines, inadequate use of technology and poor treatment of visitors does nothing to make America more secure.

To that end, in our Blueprint to Discover America the Partnership recently issued a three-point plan to strengthen America's security and fix our country's travel crisis. Our plan calls on government to:

• 1. Create a 21st century visa system;
• 2. Modernize and secure our ports of entry; and
• 3. Change global perceptions of America through coordinated communications.

There are several key points about our plan that must be understood.

• First, we strongly believe that travel and security are not mutually exclusive, and at no point do we recommend a loosening of security measures. In fact, we call for a strengthening of America's security, but we insist that it be done with the right resources, new technologies and a focus on travelers as an opportunity.
• Second, we recommend common-sense solutions, not revolutionary changes. Fixing America's travel system requires that we hire appropriately, engage the private sector and learn from our peers around the world.
• Finally, we think that a relatively modest investment - $300 million according to our plan - will have extraordinary results. If the United States gains one share point of global travel (about 10 million new visitors), we can create 190,000 new jobs, $17 billion in new spending and nearly $3 billion in tax revenue. Not only are those number significant to our economy, but 10 million new visitors represent enormous public diplomacy potential and would help fund new security programs thus making our country even more secure.

America is at a travel crossroads and how we respond as a nation will be hugely determinative of our standing in the world and of international support for U.S. policies in the future. International travel to the U.S. is the greatest public diplomacy tool we have and declining overseas travel only serves to weaken our diplomacy efforts.

Chairman Delahunt and Ranking Member Rohrabacher, it is time that we fix a flawed travel system and take advantage of this incredible vehicle for economic security, national security and public diplomacy. On behalf of the CEOs who make up the Discover America Partnership, we stand ready to help in this effort.

Again, thank you for the opportunity to testify before you today. I would be happy to answer any questions that you may have.