The Corporation for Travel Promotion (CTP), a public-private partnership created to execute the first ever nationally coordinated international travel marketing program for the United States, has announced that it has received financial commitments from the private sector to qualify for $22.2 million in matching federal contributions.
The CTP is funded partially through private sector contributions and partially through funds collected by the Department of Homeland Security from international travelers who come to the U.S. under the Visa Waiver Program. October 1 marked the start of the entity's first full fiscal year and the first time federal funds were made available to the CTP to match private contributions raised.
"Today marks an important milestone for the CTP. The fiscal year is just beginning, and already we have solid commitments from the private sector, putting us well on our way towards activating the release of the full $100 million in federal matching funds available to us in FY'12," said CTP CEO Jim Evans. "This first influx of funds will enable us to build and begin promoting the extraordinary power of 'Brand USA' in select markets around the world. We know there is still much work to be done to attract the significant private investment we require to execute our plans and deliver the maximum return to the business partners who are supporting this cause."
The Travel Promotion Act of 2009 created the CTP and established a funding structure that allows all private sector funding, both cash and in-kind, to be matched 1:1 by the monies collected from the $10 Electronic System for Travel Authorization (ESTA) fee paid by travelers under the Visa Waiver Program. In the CTP’s first full fiscal year that started October 1, however, the ESTA will fund the CTP based on a 2:1 match. That means that for every dollar collected from the private sector, the ESTA fund will contribute two during the 2012 fiscal year.
In addition to its efforts marketing the U.S. as a destination, the CTP is also responsible for garnering private financial support to build the travel promotion program. To date, the CTP has received $4.1 million in private commitments in cash, and $7 million in private contributions "in-kind," which can include anything from hotel stays and vacation giveaways to volunteer time focused on the CTP's goals. No more than 80 percent of the private investments the CTP receives may be “in-kind.”
"Our business development team will be focused on creating innovative programs for private-sector investors and industry stakeholders that will generate the revenue to unlock federal funding and finance our marketing efforts," said CTP Chairman Stephen J. Cloobeck. "The CTP would not exist without the outstanding past efforts of the travel industry and its partners, and it will not succeed in growing the U.S. economy and creating new jobs without their continued financial and creative support moving forward."
Visit www.CorporationForTravelPromotion.com
