Roger Dow, president and CEO of the U.S. Travel Association offered an initial assessment of the 2012 election results, their potential impact on the travel industry and an outlook on U.S. Travel’s policy priorities in Washington.
In a letter to travel industry leaders, Dow said U.S. Travel looks forward to working with President Obama and both chambers of Congress to enact policies that will increase travel to and within the United States and create new American jobs.
However, U.S. Travel cited a host of tough problems. "In a deeply divided Washington, the travel industry is uniquely bipartisan. We have and will continue to build strong working relationships with members of both political parties."
"President Obama’s re-election presents our industry with opportunities to continue removing barriers to travel. Regardless of your political persuasion, we must recognize that President Obama is unique in his commitment to travel and understanding of our extraordinary ability to create jobs."
Dow said the industry can expect President Obama and his Administration to vigorously defend the travel-policy accomplishments he achieved in his first term.
According to Dow this includes:
• Brand USA: The President’s support was important to the passage of the Travel Promotion Act and establishment and development of Brand USA. He is likely to actively defend an organization that was launched during his presidency and that is integral to his international outreach.
• Visa Reform & Visa Waiver Program (VWP) Expansion: The Obama Administration made huge strides in reducing visa processing wait times and implementing U.S. Travel’s recommendations to streamline the visa process. Taiwan’s entry into the VWP and the Administration’s support for legislation to further expand the program shows that the Administration understands how important this program is to economic growth. We expect the Administration to build upon these efforts over the next four years.
• Travel Infrastructure: The Obama Administration strongly supported investments in travel infrastructure, but took a hands-off approach to transportation legislation on Capitol Hill. We expect the Administration to play a more forceful role this time around, as Congress again considers the Federal Aviation Administration reauthorization and highway bill.
• Fiscal Cliff: Near term, Congress and the Administration will work to avoid the effects of a “fiscal cliff” – perhaps striking a “grand bargain.” If that happens, it is likely that President Obama will avoid the deep spending cuts that could impact government travel and meetings budgets and undermine investment in travel infrastructure.
Dow also cited many challenges during a second Obama term, including:
• Gridlock: Continued divided government will make it difficult to get legislation passed.
• Government Travel & Meetings: Fiscal constraints will continue to put pressure on agency budgets. We will need to continue our efforts to prove the benefits of government travel and meetings.
• Trade: Free trade is critical to our industry because it can generate more travel as part of international commerce. President Obama has supported free trade agreements in the past (Columbia FTA), but internal opposition may make it difficult for him to strike additional agreements. This means bipartisan support will be crucial to any new trade deals – and the travel industry can play a role.
• Brand USA: Republicans in Congress will continue to see the political benefits of targeting “Obama” accomplishments, including the Travel Promotion Act and Brand USA.
• Turnover: Turnover at senior levels in the Administration, which we expect to be significant, will require investing time in establishing relationships with new individuals. However, because of high-level support for travel, this transition should not lead to a change in tone across the Administration.
Republicans will remain firmly in control of the House, Dow noted. "The travel industry must strengthen relationships with Congressional leadership and develop new champions."
"When it comes to reducing travel hassles and improving travel facilitation, House Republicans have steadily moved away from a 'security at all costs' stance to a more balanced position where considerations of economic growth and job creation receive more attention, even as safety and security remain strong. The continued focus on employment and job creation should enable stronger relationships between the travel industry and the Republican Caucus." Dow said.
The opportunities, according to Dow include:
• Transportation Security Administration (TSA) Reform: House Republicans are likely to continue to push for TSA reform, including workforce flexibility, Trusted Traveler programs and other ideas that help the average traveler.
• Customs and Border Protection (CBP) Reform: Several committees are interested and engaged in CBP issues – this may allow for fee or staffing reforms that are tougher to move in the Senate.
• Taxes: House Republicans will be strong allies on broad business issues like tax reform.
Other challenges cited by Dow include:
• Brand USA: It is hard to imagine Republican leadership allowing a reauthorization to pass through “regular order” and Senator Jim DeMint (R-SC) may find House allies to conduct the tough oversight that he may be unable to do in the Senate. Recall that the 2012 “Ryan Budget” attempted to eliminate Brand USA.
• Budget Cuts: There is continued concern that House Republicans will push for government travel cuts as part of their overall goals to reduce government spending.
• Immigration Hawks: While new House Judiciary Committee Chairman Bob Goodlatte (R-VA) has an open record on travel issues, his caucus is still largely conservative and we will need to develop broader Republican support for policies like VWP expansion.
In the Senate Dow said Democrats have added to their narrow majority. The Senate has been a productive partner for the travel industry and it will certainly remain so in this next Congress, he noted.
• Brand USA: Majority Leader Harry Reid (D-NV) is well positioned to find opportunities to enact a reauthorization of Brand USA.
• Committee Continuity: Senate Democrats do not impose term limits on committee and subcommittee chairs so there is much less turnover in key slots – our relationships with Senate leadership and committee members will continue to deepen.
• Key Allies: Within the Democratic Caucus there are several bright spots in terms of allies for the travel industry.
• New Opportunities: The re-election of Senator Dean Heller (R-NV) should improve opportunities to develop Republican support across the caucus.
The challenges, according to Dow's analysis, include:
• Immigration: Democrats won the overwhelming majority of the Hispanic vote. This will likely prompt intense deliberation among Republican Party leaders about how to handle immigration policy. This may encourage Senators such as Marco Rubio (R-FL) and Roy Blunt (R-MO) to embrace travel as part of a shift on immigration issues.
• Fiscal Conservative Republicans: “Bipartisan cooperation” was the mantra of virtually all victory speeches. Despite this, U.S. Travel will have to continue to work hard to minimize the sway of the most conservative members in the Republican Conference when it comes to our priorities (Brand USA oversight and TPA reauthorization).
Dow concluded with an appeal for continued support of U.S. Travel: "Together, we have invested years of hard work and dedication promoting the bipartisan message that travel creates millions of good jobs and drives economic growth – and both Congress and the White House are responding favorably to our efforts. The travel industry could not be in a better position to advance our agenda in Washington – and it is due in large part to our strong partnership with you."
Dow also announced a “Travel Blitz” – targeted in-district orientation events for new members of Congress.
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