No. 28/09
June 25, 2009

STATEMENT BY AMBASSADOR JOHN BRUTON ON THE TRAVEL PROMOTION ACT OF 2009

Ambassador John Bruton, Head of the European Commission Delegation to the United States, issued the following statement today to raise concerns about the Travel Promotion Act of 2009 pending before Congress:

"Congress is currently considering the Travel Promotion Act of 2009, which would establish a nonprofit corporation to better communicate US entry policies to international travelers and promote leisure, business and scholarly travel to the United States. 

"That all sounds very reasonable. But there’s a catch. While seeking to attract international visitors, the same legislation would also foot them with the bill to pay for this program. If passed, a fee of at least $10 would be assessed on foreign travelers. It would be a tax on tourists to encourage tourism – a questionable concept.

"I fully sympathize with the US intent behind this bill. Just as in Europe, the United States has seen a significant drop in visitors due to the economic downturn. That in turn leads to a loss in revenue and thousands of travel-related jobs. Being a prime tourist destination ourselves in Europe, we fully understand the desire to boost tourism.

"The US Department of Commerce recently announced that 3.8 million international visitors traveled to the United States in March 2009, a decrease of 20 percent compared to March 2008. Because of our strong transatlantic bonds, Europeans are frequent visitors to the US - either for business or pleasure – and close to 13 million Europeans crossed the Atlantic last year. That number is expected to be far lower for 2009. The European Union is happy to see Europeans coming to the United States because this improves mutual understanding. 

"In addition to the economic downturn, the Senate Commerce Committee noted recently that tightened security standards and waiting periods at US borders following 9/11 'had the unintended consequence of erecting barriers to travel.'

"Adding to that, by charging $10 per passenger would simply mean erecting yet another barrier to travel to the US and would be a step backwards in our joint endeavor to ease transatlantic mobility. The fee might actually result in fewer, not more travelers coming to the United States. 

"Once introduced, the visitor tax could be increased to meet unrelated funding needs. Unlike exit taxes that are sometimes levied in other countries, but apply to all travelers including citizens of the country concerned, this tax will only apply to non-Americans coming to the United States and not to Americans and is thus discriminatory. This tax on European travelers entering the United States, in combination with other Congressional measures in the FAA [Federal Aviation Administration] reauthorization bill, substantially increases the cost of flying across the Atlantic.

"Furthermore, as the bill stipulates, the fee would be paid as part of a traveler's application for an Electronic (System for) Travel Authorization (ESTA), which is required for every visitor traveling to the US under the Visa Waiver Program. The imposition of the fee is a change in the understanding under which ESTA was established as a security program by the US. It was difficult to achieve consensus inside the European Union on meeting the data collection requirements of this US system, but although consensus was achieved, ESTA remains unpopular in Europe. Charging a fee as well will not help matters. 

"The link of the visitor tax with ESTA may discourage travelers from registering their information well in advance to avoid losing the fee if they end up not travelling. This risks undermining the security objectives of the system.

"The European Commission would also have to re-examine if ESTA can be considered as a visa in disguise, with potentially negative implications on reciprocal visa-free travel between the European Union and the United States.

"Furthermore, we are concerned that with the establishment of this entrance tax by the Congress, there will be a demand for Americans to pay the same fees for travel to Europe, which could further depress transatlantic travel."

Further Contact Information:
Press and Public Diplomacy
Delegation of the European Commission
2300 M Street, NW
Washington, DC 20037
Tel: 202-862-9552