National tourism policy : background report

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Title:
National tourism policy : background report
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v, 61 p. : ; 24 cm.
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English
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United States -- Congress. -- House. -- Committee on Interstate and Foreign Commerce. -- Subcommittee on Transportation and Commerce
United States -- Congress. -- House. -- Committee on Interstate and Foreign Commerce
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Washington
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Subjects / Keywords:
Tourist trade -- United States   ( lcsh )
Tourism -- United States   ( lcsh )
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federal government publication   ( marcgt )
non-fiction   ( marcgt )

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General Note:
July 13, 1979.
General Note:
At head of title: 96th Congress, 1st session. Committee print. Committee print 96-IFC 21.
General Note:
CIS Microfiche Accession Numbers: CIS 79 H502-36
Statement of Responsibility:
prepared for the use of the Committee on Interstate and Foreign Commerce, House of Representatives and its Subcommittee on Transportation and Commerce, Ninety-sixth Congress, first session.

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University of Florida
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All applicable rights reserved by the source institution and holding location.
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aleph - 022594499
oclc - 05680088X
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ddc - 338.4/7/9173
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AA00025907:00001

Full Text
1C2E~1 7 7'


I--]I


ellyY


96th Congress 1 COMMITTEE PRINT COMM -I..
1st Session COMMITTEE PRINT .v1T ; IFC( 21


NATIONAL


TOURISM POLICY


Background Report




PREPARED FOR THE USE OF THE


COMMITTEE


ON INTERSTATE


FOREIGN COMMERCE
HOUSE OF REPRESENTATIVES

AND ITS

SUBCOMMITTEE ON
TRANSPORTATION AND COMMERCE


NINETY-SIXTH


CONGRESS


FIRST SESSION


JULY 13, 1979


U.S. GOVERNMENT PRINTING OFFICE


WASHINGTON : 1979


AND


us-I- C~j~i


48-4140















COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE


HARLEY 0. STAGGERS, West Virginia, Chairman


JOHN D. DINGELL, Michigan
LIONEL VAN DEERLIN, California
JOHN M. MURPHY, New York
DAVID E. SATTERFIELD III, Virginia
BOB ECKHARDT, Texas
RICHARDSON PREYER, North Carolina
JAMES H. SCHEUER, New York
RICHARD L. OTTINGER, New York
HENRY A. WAXMAN, California
TIMOTHY E. WIRTH, Colorado
PHILIP R. SHARP, Indiana
JAMES J. FLORIO, New Jersey
ANTHONY TOBY MOFFETT, Connecticut
JIM SANTINI, Nevada
ANDREW MAGUIRE, New Jersey
MARTY RUSSO, Illinois
EDWARD J. MARKEY, Massachusetts
THOMAS A. LUKEN, Ohio
DOUG WALGREN, Pennsylvania
ALBERT GORE, JR., Tennessee
BARBARA A. MIKULSKI, Maryland
RONALD M. MOTTL, Ohio
PHIL GRAMM, Texas
AL SWIFT, Washington
MICKEY LELAND, Texas
RICHARD C. SHELBY, Alabama


JAMES T. BROYHILL, North Carolina
SAMUEL L. DEVINE, Ohio
TIM LEE CARTER, Kentucky
CLARENCE J. BROWN, Ohio
JAMES M. COLLINS, Texas
NORMAN F. LENT, New York
EDWARD R. MADIGAN, Illinois
CARLOS J. MOORHEAD, California
MATTHEW J. RINALDO, New Jersey
DAVE STOCKMAN, Michigan
MARC L. MARKS, Pennsylvania
TOM CORCORAN, Illinois
GARY A. LEE, New York
TOM LOEFFLER, Texas
WILLIAM E. DANNEMEYER, California


W. E. WILLLIAMSON, Chief Clerk and Staff Director
KENNETH J. PAINTER, First Assistant Clerk
ELIZABETH HARRISON, Profess88ional Staff
LEWIS E. BERRY, Minority Counsel



SUBCOMMITTEE ON TRANSPORTATION AND COMMERCE
JAMES J. FLORIO, New Jersey, Chairman


JIM SANTINI, Neva'a ,
BARBARA A. MIKULSKI, Maryland
JOHN M. MURPHY, New York
MARTY RUSSO, Illinois
HARLEY 0. STAGGERS, West Virginia
(Ex officio)


EDWARD R. MADIGAN, Illinois
GARY A. LEE, New York
JAMES T. BROYHILL, North Carolina
(Ex officio)


CLIFFORD ELKINS, Staff Director


(II)










LETTER OF TRANSMITTAL


CONGRESS OF THE UNITED STATES,
HOUSE OF REPRESENTATIVES,
SUBCOMMrITEE ON TRANSPORTATION AND COMMERCE,
COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE,
Washington, D.C., July 13, 1978.
Hon. HARLEY 0. STAGGERS,
Chairman, Committee on Interstate and Foreign Commerce, U.S. House
of Representatives, Washington, D.C.
DEAR MR. CHAIRMAN: The report, "National Tourism Policy,"
prepared by the professional staff of this Committee, deals with an
important national issue. It is my belief that it would be useful if the
report were published as a Committee Print.
Following four years of study, the U.S. Senate has passed a bill
establishing a new national tourism policy. i1his report analyzes the
legislative history of our current tourism policy, as carried out by the
United States Travel Service, in the District of Columbia, and describes
the work done by the Senate. The Subcommittee on Transportation and
Commerce will hold hearings on the Senate-passed bill, S. 1097, in July
and August, 1979.
I believe that all Members of the House will find the study to be of
interest.
Sincerely,
JAMES J. FLORIO,
Chairman.
Enclosure.
oill)













CONTENTS

Legislative History of International Travel Act of 1961 ...................... 1
Legislative History of D)omestic Travel Promotion.............................. 8
N national Tourism Policy Study ................................................................ 9
P hase I ............................................................................................... 9
P hase II .............................................................................................. 10
P hase III .................................................................................. ......... 11
Report for United States House of Representatives ........... 12
Comparison of the Eight Foreign Government
Tourism Programs by Arthur D. Little, Inc.
A. Comparitive Economic Significance of.................... 12
Tourism and The Impact of Government
Spending on Tourism
B. Comparison of the National Tourism ....................... 14
Policies of the Eight Foreign Governments
Surveyed
C. Comparison of the Structure, Budgets, and............. 16
Staffing of the National Tourist Organizations
Surveyed
D. Comparison of Tourism Programs' Focus............... 19
in the Eight Foreign Governments Surveyed
E. Comparison of Tourism Coordinating ..................... 22
Mechanisms
Report for United States Senate by Arthur D. Little, Inc... 24
International Travel Act of 1961 (P.L. 87-63) ....................................... 27
(as amended through Public Law 94-55)
Senate Bill S. 1097 .......... .......................................................................... 30
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Digitized by the Internet Archive
in 2013















http://archive.org/details/natiourismp00unit











NATIONAL TOURISM POLICY
Background Report

LEGISLATIVE HISTORY OF INTERNATIONAL TRAVEL ACT OF 1961
The main purpose of the International Travel Act of 1961
(P.L. 87-63) was to create a Federal program within the Department of
Commerce specifically designed to encourage foreign tourists to visit the
United States. The United States Travel Service (USTS) was organized
within the Department for this purpose and funded at $3 million for
fiscal year 1962.
The Act directs the Secretary of Commerce to "develop, plan, and
carry out a comprehensive program designed to stimulate and
encourage travel to the United States by residents of foreign countries
* *; encourage the development of tourist facilities, low cost unit
tours; * foster and encourage the widest possible distribution of the
benefits of travel at the cheapest rates * *; encourage the
simplification, reduction, or elimination of barriers to travel * *;
collect, publish and provide for the exchange of statistics and technical
information." (22 U.S.C. 2122).
From 1963 through 1970 the USTS authorization level was $4.7
million a year. In 1970 this Committee held hearings on several bills to
expand the authorization and scope of the USTS. As ordered reported
from this Committee and enacted, the 1970 amendments to the
International Travel Act of 1961 (P.L. 91-477) increased the USTS
authorization to $15 million for each of fiscal years 1971, 1972, and
1973.
The 1970 amendments to the International Travel Act of 1961 also
provided for a National Tourism Resources Review Commission to
survey tourism needs and resources over a two-year period and develop
a program. The Commission issued its report in June 1973. Its main
recommendation was the establishment of a National Tourism
Administration within the Department of Commerce to consolidate the
present scattering of 136 programs in 46 Federal departments and
agencies. The Senate introduced such a bill and held hearings. The
House did not. The fact that this proposal failed to be passed reflected
the consensus in both Houses that the report of the National Tourism
Resources Review Commission did not provide the comprehensive base
necessary for a new Federal program.
The United States suffers from a chronic imbalance in the travel
accounts portion of our balance of payments, which increased from $1.3
billion in 1960 to over $3 billion in 1972. From 1973 through 1978 this
deficit in the travel account has remained at approximately $3 billion
each year. The deficit represents the difference between the sums spent
by Americans traveling abroad or paid to foreign flag carriers and the


(1)





2

sums spent by foreigners in this country or paid to U.S. flag carriers. It
forms a significant part of the overall balance-of-payments deficit. In
1978 total U.S. travel receipts reached $8.5 billion (including $1.2
billion paid to U.S. flag carriers and $7.3 billion spent by foreign
tourists in the U.S.A.). In 1978 total U.S. travel expenditures reached
$11.4 billion (including $2.9 billion paid to foreign air carriers and $8.5
billion spent abroad by American tourists). 1lhe difference of $2.9
billion represents the deficit in the U.S. travel account.'
The USTS, in common with many Federal agencies, has a history of
substantially lower appropriation levels than authorized funding
amounts. The authorization-appropriation history charted below
indicates the difficulty the USTS has had in achieving an adequate level
of appropriated funds.

TABLE 1.-UNITED STATES TRAVEL SERVICE
AUTHIORIZATION/APPROPRIATION HISTORY
[in thousands of dollars]
Appropriation Appropriation
Authority requested made Obligated Outlay
Fiscal year:
1964..................................... 4.700 4.200 2,600 2.495 2,561
1965...................................... 4,700 3,950 3,000 2,991 2,432
1966..................................... 4,700 3,500 3,000 2,975 3,101
1967...................................... 4,700 4,700 3,000 2.936 3.047
1968..................................... 4,700 6,400 3,000 2.910 2,805
1969...................................... 4,700 4,678 4,500 4.441 3,742
1970................................... 4,700 6,000 4,538 4.525 4.847
1971...................................... 15.000 6,605 4,605 4,562 4,713
1972.................................... 15.000 9.454 6,480 6,377 4,952
1973...................................... 15,000 12,081 9,000 8,843 7,515
197: ................................... 15,000 11,344 11,100 11,239 10,900
1975...................................... 20,000 11,533 11,250 11,244 10,243
1976..................................... 127,500 11,587 12,815 312,358 11,457
1
Transition Quarter ............ 15.625 2,897 3,204 3.640 3,428
1977...................................... 27,500 12,220 14,470 14,469 14,373
1978...................................... 32,500 14,199 14,190 14,082 13,847
1979...................................... 30,000 14.543 13,500 N/A N/A

1 Includes domestic tourism authority of $2,500 in FY 1976, FY 1977 and FY 1978 as well as $625 for the Transition
Quarter.
2 None of the figures in this column include supplemental for pay increases.
3 The unobligated balance at the end of FY 1976 automatically carried over to the Transition Quarter.

The authorization levels for earlier years were based on
implementation by the USTS of an Integrated Marketing Plan. This
Plan was the result of a study completed in December 1972 for the
Department of Commerce by a management consulting firm. This
five-year travel and promotional program integrated USTS activities to
accomplish stated objectives. Periodic measurement of the program's
effectiveness was incorporated. Effectiveness has been measured by
attempting to determine the number of visitors who have come to the
United States solely due to USTS promotional efforts. This has been a
difficult task for USTS. Over the past four fiscal years, USTS has been

1 Bureau of Economic Analysis, Department of Commerce, supplied this data.






able to qualify the results of its c4 .'
programs: tour development, incentive v I.
four-year period including fi-ca yc., r 1'
programs are as follows:

TABLE 2.-RESL -TS OF U'S i!S I';- /


Bud ,'; .
Fiscal year (ho.,.) (

1974 .................................................. $11,253
1975 .................................................. 11,2 ,
1976 .................................................. 15,5""
1977 .................................................. 14,,-Q
Total...............................................5..2 5 Y-.2
Rounded total ......................... .. 53 (. '

1 Included extra transition quarter between fisc;:. ,'. 976 a 9
from July 1 to October 1 at the tesirinring .oi iu I.... ...
These three measurable prer{'cnv .v
$18.60 in foreign exchange c,.riji, for
Even if these results arc dis.icoint,:.- by '' y
might have come to the Unit'. St:.-.: i --,y
will have generated n-earIy $10 .'f 1.,>-. x
dollar expended.
For FY 1980, the House in:d th .-.t
containing $8 million an :..,.
completion and enactment of a newv ,
primary purpose of this authorizati i to c
and marketing activities of ie USt. .; t
D. C., staff office at a reduced level, iintil ev
bill can be enacted.
The USTS authorization for F,:, y."
appropriation was $13.5. In authc, i
this bill proposes a reduction of S5.5 y, (o
than the fiscal year 1979 .'ip-oIT ri ,ri n. f
authorization is consistent with the eCo
expenditures. The main purpose of th>- r
to maintain the six overseas oftkl es in
Germany, France, and the Unit-: Ki.',
work directly with the travel tr.',de and tour
to encourage foreign residents to visit the U '
The USTS also carries on markcirig ..vi
although its limited resources do not n f i
these countries. Travel promotion efforts
embassies and the travel trade in Ven
Netherlands, Switzerland, Sweden, Br::L
countries generated 91 percent of the vi.t'-
1977. (16.9 million international arrivol-
exchange earnings from tourism ($5.1 billi?:,))


48-414 0 79 2






TABLE 3.-INTERNATIONAL TOURISM ARRIVALS IN THE UNITED STATES

Country of origin 1977 1976 Percent change

Canada........................................................ 12,083,386 11,163,683 +8.2
Mexico........................................................ 2,029,745 1,920,509 +5.7
Japan ........................................................... 748,743 722,386 -3.2
United Kingdom........................................ 533,244 538,486 -1.0
West Germany........................................... 386,587 365,533 + .8
France ......................................................... 215,554 217,284 -.8
Venezuela.................................................... 208,263 152,003 +37.0
Australia...................................................... 155,174 168,470 -7.9
Italy.............................................................. 122,108 131,375 -7.1
Netherlands................................................ 103,736 94,936 +9.3
Switzerland................................................. 89,285 91,206 -2.1
Sweden........................................................ 75,718 75,270 +.6
Brazil ........................................................... 66,268 105,426 -37.1
Spain............................................................ 59,233 57,031 +3.9
Belgium ......................................... 44,929 44,753 + .4
Total ...................................................... 16,903,973 15,898,361 +6.3

Total, all arrivals................................... 18,609,794 17,523,239 +6.2

TABLE 4.-INTERNATIONAL TOURISM RECEIPTS IN THE UNIFIED STATES
(EXCLUDING TRANSPORTATION RECEIPTS)

Country of origin 1977 1976 Percent change

Canada........................................................ $2,150 $1,983 +8.4
Mexico......................................................... 1,414 1,428 -1.0
Japan ........................................................... 436 439 -.7
United Kingdom........................................ 199 183 +8.7
West Germany.......................................... 261 206 +26.7
France ......................................................... 120 96 +25.0
Venezuela.................................................... 157 102 +53.9
Australia...................................................... 96 107 -10.3
Italy.............................................................. 60 59 +1.7
Netherlands................................................ 57 49 +16.3
Switzerland................................................. 51 43 +18.6
Sweden........................................................ 40 37 +8.1
Brazil ........................................................... 50 76 -34.2
Spain......................................................... 29 25 +16.0
Belgium....................................................... 26 22 +18.2
Total ...................................................... $5,145 $4,855 +6.0
Total all receipts................................... $6,164 $5,806 +6.1
(excluding transportation)
Transportation receipts........................ 1,025 937 +9.4
Grand total receipts............................. $7,189 $6,743 +6.6


Source: United States Travel Service. 1977
are available from USTS.


is the last year for which complete statistics






The USTS had made the following points when submitting its fiscal
year 1979 budget estimate a year earlier:
1. Tourism ranks fourth among U.S. exports of goods behind
machinery, transport equipment, grain and cereal preparations;
2. Of the total visitor arrivals and earnings projected for 1979, it
is estimated that 720,000 arrivals and $375 million in earnings can
be identified as being related to USTS program efforts; and
3. International tourists account for less than 2 percent of
consumer gasoline usage and use mass transportation and are
generally less mobile within the United States than are American
tourists.
(Emphasis added.)
In the six major markets and nine other designated markets the
USTS develops and administers several programs designed to:
Service and train foreign wholesalers/tour operators in
developing and marketing Visit USA travel;
Assist U.S. travel industry in increasing its marketing and
selling efforts in foreign markets with the best potential for
U.S. travel development;
Facilitate contacts between U.S. suppliers of tourism services
and foreign buyers;
Encourage private and public sector cooperative travel
development efforts designed to increase travel to the United
States and length of stay in the United States; and
Encourage suppliers of tourism service to provide more
information on travel opportunities to prospective foreign
travelers.
Specifically, among other activities, the USTS conducts mass media
advertising and public information campaigns in Canada, Mexico,
Japan, the United Kingdom, West Germany and France; in cooperation
with representatives of U.S. hotels, airlines, and other suppliers of U.S.
travel arrangements, conducts seminars and workshops for travel sellers
in its designated markets; provides a phone-in, write-in, walk-in source
of Visit USA travel information to attract international conventions to
the United States; distributes convention leads to U.S. convention and
visitor bureaus for follow-up action; conducts incentive travel seminars
to educate executives of foreign companies about the incentive travel
concept, and to persuade incentive operators to include U.S.
destinations in the incentive packages they develop for their corporate
clients; identifies U.S. trade shows of interest to foreign business, and
encourages foreign tour operators to develop and promote special
packages featuring many of these events; and provides technical
support, product promotion, and financial assistance to tour operators
through a program designed to motivate them to create more package
tours to the United States.
The Committee believes that this legislation authorizing $8 million
for FY 1980, primarily for the overseas offices of USTS, represents a
reasonable and prudent way to continue the activities of the U.S. in
promoting international travel to this country. H.R. 2795 is identical to
the Senate bill, S. 233, which passed the Senate on March 8, 1979, by
unanimous consent.






n,'s on these bills also brought out the
di..,rcs by this nation in maintaining the six
1 -71 : 2 ;i- small when compared to the amounts
ti- p:.-omoting travel to their own countries.
S..,:,t $v 5 million in the United States alone in
vd 1\ i3 _xu"itry. Ireland spent $4 million for the

v c-F.'e nations operate national tourist offices.
: tIhe Administration proposes, the United
e 'y S,.iustrializcd nation, and one of the few
i r-,t j 7..jtional tourist office or facilities in

t! r-i.,sc and the Senate are reviewing our
A ,.i Houses have had and continue to have
Sl : .,-ininistration of the International Travel Act
l ?c'vi-:e. There have been many causes:
yscv:-m. administrations and Secretaries of
: r,J.;, policy orientation, and planning by the
; to c ,,rdinate tourism policy with other basic
I,.- as energy conservation, transportation,
ti<- immi:,,-on, and consumer protection.
127 5 i .d be regarded as an interim measure to
v *. rIe -,rj,, within the scope of the USTS
If international travel to this country, as
S ',..-:. offices and the marketing activities in
C jinnittece believes it would be a waste of
Si.ate *', US IS before the Congress has been
1 c ,d'r o, national tourism policy and decide
,e F .e,,, 'Ie rould be.
"t 1 '7 ,rnisurjtior! is recommending that the
1 y fo.i -:ident.; to this country be eliminated
to .e u'.: States can be viewed as a "living
i.i ..ti.n's budget proposal for 1980 also
c-.-- FVderal export program of about 30
c .d that these contradictory positions are
S.ial this country's balance of payments
I r d '.*i;,. trade deficit of over $28 billion in
Si. ,._. ntinued to improve, from $6 billion in
y. ., an increase of about 18 percent.
', .of travel to the United States by
,-.-:t that most foreign governments
iT. -,r other all over the world for travel
i te efios of the private sectors of their
S 'v..te Ami-0;_ican, travel companies not only must
,vu 1 ":_-.'i'. but also must compete with other
U. ; F, international promotional activities are
1 -;:- competitive disadvantage.
S.0e fa.l- L.ji the beneficiaries of international
S tat'. ..'- :, not merely private industries which
,,4,, y :?<,t by foreign visitors provides revenues
t-c,:-.'. large and small, and jobs in the
. 5 J;iilion persons, many of whom are






relatively low skilled and do ni:,,. ',-v j alt
accruing to the States arid citic-. '.. :A'..It
visitors are enormous.
Tourism is one of the top thr,-_, in.ustri, L
and accounts for over $115 billion ar,:-'.. 1i! i c
W hen considered as a sinsc 1,I, ,il ir' 1,, i II
industry in the United St'.. .: .. f
groceryy sales and autumnoti, s.ic).1
'he adverse effect of elimii,iti'r,, :!-.- ve7
was illustrated by the tetinhmy .,1 '.. wi-
hearings who were foreign nation th: ti.
own in Paris, France, and Mexico Cit., P' o 1
\itli the USTS offices in those citi..- 1
offices in foreign countries close. tur I
the United States in close colla '.'i'
few months, channel their efforts :. o r
pressure, encouragement, and in.-_ of n r
which will remain. They also .-,.r.U-d d"t 6 l c
and the decrease in airfares are not .c ._ r
in foreign visitor arrivals to -thi i ....
with offices promoting tourism to their own'.
tied to the dollar and airfares arc going donv
not only to North America. Tl11:, -)ncl.sii..
disappear, competitors from other nation' will
The Senate has completed a four-y1: -...
policy and the Senate Commitlcc on Co
Transportation recently reported a bill, S. 1I
Senate on May 14, 1979, and establish-s -. e.'
The Subcommittee on Tra .spor... d' .
Participated in the last phase of the
hearings in July and August 1979 on '.
tourism policy.















1 US. Travel Data Center.










LEGISLATIVE HISTORY OF DOMESTIC TRAVEL PROMOTION


The domestic travel program originated in 1940 in the Department of
the Interior as part of the National Park Service program. Mere were
sporadic efforts to generate activity, interrupted by World War II and
Te Korean War. Although authorizing legislation was approved for
fiscal years 1971 and 1972, the Department of the Interior requested no
funds for fiscal year 1972 and permitted the program to become
dormant. The 93d Congress was convinced that the domestic travel
program needed new vitality, and for that reason, this Committee held
earnings and reported a bill which became law in December 1973
P.L. 93-193). This law transferred the domestic travel program to the
cretary of Commerce. The Committee intended that the domestic
travel promotion authority be coordinated with the Department of
Commerce program (in USTS) encouraging foreign residents to visit the
United States under the International Travel Act of 1961.
Another reason for the transfer of the domestic travel authority to the
USTS was the restrictive view taken by the Department of Commerce
concerning the authority of USTS to promote travel within the United
States by a foreign visitor once he arrived at a port of entry in this
country. In the Department's view, the International Travel Act of 1961
did not confer authority on USTS to promote travel by a foreign visitor
past his port of entry. This narrow interpretation greatly restricted
USTS promotional efforts.
The Administration would not agree to fund the domestic travel
program during the 93d Congress. $2.5 million was authorized for each
of fiscal years 1976-78 for use by USTS to promote domestic travel. As
the USTS Authorization/Appropriation history (on page 2) notes, the
actual appropriations for those years were: FY 1976-$1.25 million;
FY 1977-$1.5 million; and FY 1978-$1.008 million. There was no
FY 1979 authorization. The same lack of goals, program planning, and
good staff work that has hampered the USTS office in Washington,
D.C. in the international travel promotion area carried over into the
domestic program. For this reason, Congress did not include funding
for domestic travel promotion in the FY 1980 bill.


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NATIONAL TOURISM POLICY STUDY


The need for this study had been apparent since the National
Tourism Resources Review Commission sent its report to Congress in
June 1973 according to the mandate in the 1970 amendments to the
International Travel Act. This report made clear that although there
were a multitude of programs and policies within dithe Federal
government which impacted tourism, they appeared to be fragmented,
diffused, and often conflicting. Moreover, little had been done to
develop and refine the Federal role in helping both the public and
private sectors to assure that tourism would contribute to the country's
welfare.

PHASE I
To correct these problems and maximize the beneficial aspects of
tourism while minimizing the costs and conflicts, the Senate undertook
a study of the Federal role in tourism. Senate Resolution 347,
cosponsored by 71 Senators and unanimously agreed to by the Senate
on June 24, 1974, authorized the Senate Commerce Committee to
conduct a study and recommend a national tourism policy and the
mechanisms to coordinate and implement it.
Phase 1 of the National Tourism Policy Study (the Study) was
completed in August 1976. Chiefly based on work done for the
Committee by Robert R. Nathan Associates, Inc., it identified the
Federal programs and policies which significantly impact tourism. The
conclusion states:
The preceding legislative review illustrates the diversity of purposes
for which tourism and tourism-related legislation have been enacted,
and the ways in which various program mandates affect tourism supply
and demand. The statutes covered in this chapter form the legislative
foundation for significant Federal tourism and tourism-related
programs, and will provide the basis for the subsequent analysis of
specific programs.
A clearly enunciated Federal tourism policy is conspicuously absent
in the legislation surveyed here. To the extent that such a Federal
policy exists, its expression has been confined mainly to legislation
associated with the U.S. Travel Service. For instance, there is little
explicit recognition of tourism considerations either in the legislation or
legislative histories underlying major Federal outdoor recreation
programs.
In general, the Federal tourism programs created by the International
Travel Act of 1961 and the Domestic Travel Act were conceived in a
vacuum, with no substantial relation to other Federal programs
significantly affecting tourism. These other programs, the product of the
"tourism-related" legislation reviewed here, are administered for a
variety of purposes that directly or indirectly affect the supply of
tourism resources and the demand for tourist travel. To date, no


(9)




10

t. '.j ,rcvicde a cohesive link among Federal
Stc _..im.,. or to provide tourism-related
i'- l..:g^ding the national interests in



y w. cc!.. let.cd in June, 1977, and was done
oinrittee's direction by Arthur 1). Little,
*e :...,;lyzed the tourism needs of the States,
Sf.r .*.:.;i t he tourism needs of the States
: ,.te private sector was a series of regional
T *..:. mee.:s.s provided an opportunity for
,* (. 2w.ovcrnments and the private sectors to
1 ,',-.ontin tihe tourism and travel industry,
o t' oic their recommendations concerning
.. .i11 i:-volvcmncnt in tourism and travel
: -d ,c-.onsibe to these needs.
ur Little, Inc.'s table setting forth the 25
v;"I' s cc,. :,,rccd upon by the participants at

," 17D TO P .SM AND TRAVEL NEEDS
-t. ,:-rgy plaiiinnig to promote efficient
S,..-.r.lI y sources.
t F.-erai emergency energy allocation and
. t--,,.. the tourism/travel industry equal
cr m.-: r :idustries.
,- y \rikh representative segments of the
i *uts to development of Federal policies and
v' ..-ln.pment on an ongoing basis.
ScI U^I'S pr-:,moti:i of the United States in
.markets (e.g.. Canada, Mexico, Western
., eC.,:ve rcans to conserve energy in the
S c- creationtion measures have only shifted
S..,; H nr-lly conserving energy.)
: tof ,. g--:,ge contingency plans for the tourism
.,f r,.ential energy shortages, economic
c t f ;iv impacts of Federal regulations and
'. ,;. .Lr' development efforts prior to
. for preparation of a tourism impact

'ty ,dr tourin ,.ong State Department offices
.. of',: ic cpirtment of Commerce overseas.
*Live f_-.,.al promotion by USTS and USIA of
*" in rr 'ijor fio',reign visitor markets.






10. Need for greater research on the relative costs and benefits of
tourism development projects as a means of raising the priority of
tourism development in the public eye.
11. Need tourism development planning to alleviate the long-term
negative impacts of rising energy costs on the growth of the
domestic tourism and travel industry.
12. Need to reconcile conflicting rules and regulations among Federal
regulatory agencies which often make proper compliance impossible
and have a dampening effect on development of new facilities and
services in the tourism/travel industry (e.g., Deparutment of Labor
and Internal Revenue Service; Federal Energy Administration and
Occupational Safety and Health Administration).
13. Need for Federal promotional activities to be based on adequate
and sound market research.
14. Need more extensive quantitative data collection and economic
impact studies at the regional, State, and local levels of the tourism
industry (including rura and small city areas).
15. Need better coordination between Federal agencies involved in
tourism promotion and those involved in tourism development.
16. Need streamlining of EPA's environmental impact statement review
process to reduce delays in tourism facility development.
17. Federal energy policies need to provide for regional differences.
18. Need assessment of possible negative impacts of Federal regulations
and rulings on tourism industry promotional efforts prior to
promulgation (e.g., licensing of tour brokers, CAB regulations, etc.).
19. Need promotional efforts in foreign tourism markets aimed at
altering the image of the United States as an expensive international
tourism destination.
20. Need greater coordination between CAB and other regulatory
agencies whose activities have an impact on the tourism and travel
industry.
21. Need to improve training, behavior, and attitudes of U.S. customs
and immigration officials to facilitate foreign visitor clearance.
22. Federal energy policies should support development of alternative
forms of transportation to the automobile (e.g., railroads and mass
transit).
23. Need to ensure uniform statistical data collection procedures at the
regional, state, and local levels, which would permit nationwide
dissemination and sharing of such data.
24. Need to establish guidelines for common definitions of tourism
terms, standardized methodologies for data collection, and research
data categories responsive to tourism research needs.
25. Need for a uniform promotion policy and better coordination of
promotional activities among USTS, USIA and other agencies and
U.S. offices abroad having some responsibility for international
visitor promotion.

PHASE III
Phase III, the final phase, was also completed by Arthur D. Little,
Inc., under the direction of the Senate Commerce Committee.


48-414 0 79 3






The House Interstate and Foreign Commerce Committee, through
the Subcommittee on Transportation and Commerce, also funded and
participated in Phase III. The House contract with Arthur D. Little,
Inc.. required a survey of the national tourism organizations and
programs of eight foreign governments-Canada, Mexico, the United
kingdom, Ireland, France, Spain, Hong Kong. and Japan. During this
survey the Arthur 1). Little, Inc., study team conducted more than 100
personal interviews with key tourism personnel in both the national
governments and the private sectors of these eight foreign tourism
organizations.
'lle major comparisons of the eight foreign tourism programs are
reprinted below. Except for Japan, they represent major
government-supported, successful endeavors whose results are
important to this Committee in deciding how to formulate a new
policy. Arthur D. Little, Inc.'s Table 7 is particularly important, because
it is a summary comparison of the form, budgets, and staffing of the
eight foreign tourism organizations surveyed.
Comparison of the Eight Foreign Government Tourism Program
by Arthur 1). litle
for the Subcommittee on transportationn and Commerce of the
House Committee on Interstate and Foreign Commerce
A. Comparative Economic Significance of Tourism and The Impact of
Government Spending on Tourism
Arthur D. Little's Table 5 (not shown) compares in summary fashion
the economic significance of tourism revenues and government
expenditures on tourism in the United States with the seven foreign
countries surveyed and with Hong Kong.
o Direct expenditures for tourism services in 1976 formed an important
component of total gross national product (GNP) in all of the
countries surveyed, from a low of 1.3% of GNP in Japan to a high of
8.3% in Hong Kong. In five of the six countries for which data is
readily available, tourism revenues accounted for more than 5% of
GNP. In the case of the U.S., tourism revenues accounted for 5.7% of
GNP in 1976.
0 The significance of international tourism revenues for gross national
product (excluding the balance of payments impact) varied
significantly among countries, from less than one-half of one percent
in the U.S. and Japan to 4.2% in Ireland and 8.3% in the case of
Hong Kong.
o The total 1976 appropriation of $12.8 million for the U.S. Travel
Service (USTS) was substantially lower than budget appropriations
for government tourism agencies in Canada, Mexico, the United
Kingdom, and Ireland. Although data is not listed, the evidence
indicates that government tourism appropriations in France and
Spain were significantly higher than the U.S. appropriation as well.
Direct Japanese government appropriations for tourism, on the other
hand, were substantially lower than U.S. appropriations, as was the
case for Hong King.






o The United States had the lowest per capital expenditure for national
tourist organization (NTO) activities ($.06) of any of the countries
surveyed, "'he United Kingdom per capital expenditure was 7.3 times
the U.S. expenditure, the Canadian per capital expenditure was 18.1
times the U.S. expenditure, and the Irish per capital expenditure was
120 times the U.S. per capital expenditure.
o Expenditures per capital on promotional activities in general and on
international promotion in particular were similarly significantly lower
in the U.S. than in seven of the eight areas surveyed. The average per
capital expenditure on international promotion was $.54; the U.S.
spent $.03 per capital on international promotion, or 18 times less
tan the average. Even the Japanese government, for which
international tourism has only a marginal economic impact, spent
twice what the U.S. spent on a per capital basis for international
tourism promotion.
o The U.S. appropriation per capital for tourism research, planning, and
development by the U.S. Travel Service was $0.01, 50 times less than
the average per capital expenditure on NTO research, planning, and
development by the nine countries combined.
SAt 0.1%, U.S. Government international promotional expenditures as
a percentage of international visitor revenues were significantly lower
than those of the eight foreign governments surveyed. The same was
true for total U.S. expenditures on USTS activities as a percentage of
total tourism revenues. In the international field, Ireland and Japan
had the highest government promotional expenditures as a percentage
of international revenues-3.4% and 2.6% respectively. The other
governments were in the 0.3% to 0.8% range.
At first glance, this might appear to support the contention that the
U.S. is doing a relatively effective job in international promotion,
spending only one-tenth of one percent in promotion for what the
Nation gets back in revenues.
However, to accurately measure effectiveness, it would be necessary
at a minimum to examine data on international tourism revenues
before and after the implementation of an international promotional
program, and to continue tracking the growth of revenues vis-a-vis the
growth in promotional expenditures over time. A one- year static
analysis is insufficient for drawing conclusions concerning effectiveness.
On the other hand, the data can also be interpreted to mean that
U.S. international promotion efforts are currently minimal, relative to
other countries and to the overall size of the United States' current and
potential foreign visitor market. It is thus likely that a moderate
increase in U.S. funding for international promotion would have more
than offsetting positive effects on the growth of international tourism
revenue. In other words, it is unlikely there would be a serious
escalation in the percentage ratio of expenditures to revenues.
Finally, we should note that many government officials feel that the
economic benefits of international promotion are only one form of the
benefits which result from growth in international visitor traffic.
International goodwill, intercultural appreciation, and understanding
and acceptance of U.S. domestic and international policies are
important non-economic reasons for supporting growth in international
visitor flow.
(Emphasis added.)






B. Comparison of the National Tourism Policies of the Eight Foreign
Governments Surveyed
Table 6 summarizes key characteristics of the national tourism policies
of the various foreign governments surveyed aspart of the study.
o Seven of the eight governments have some form of national tourism
policy. Hong Kong, because of its status as a British colony and its
small size, conducts tourism activities on the basis of international
tourism agency policy.
o Four of the seven national tourism policies (Mexico, United
Kingdom, Ireland, Japan) were developed in the form of a specific
legislated mandate independent of other legislative actions. In these
four cases, the legislation consisted of a statement of overall policy
goals and objectives and the identification of specific organizational
or programmatic means for implementing the national policy.
o In the other three cases-France, Spain, and Canada-national
tourism policies were reportedly developed on the basis of legislation
or executive orders mandating new or reorganized government
departments or bureaus. In the case of Canada, the detailed Federal
policy on tourism was the result of recommendations by an
inter-departmental committee which were adopted as internal policy
g guidelines.
o In several countries, national tourism policy goals and the means for
policy implementation have been modified over time from the
original mandated legislation in the light of changing requirements,
conditions, and political needs. Successful policies have frequently
embodied a degree of ambiguity or generality which permitted
flexible and changing interpretation of the tourism policy mandate
over time.
o Within the written mandate, statements of tourism policy goals and
objectives ranged from the very brief and general to very detailed
statements of programmatic objectives. Repeatedly mentioned policy
goals included:
stimulation of domestic and international visitor traffic;
maximization of employment, income, and revenue benefits from
tourism;
use of tourism for regional economic development goals;
development and conservation of historic, cultural, and natural
resources for tourism;
maximization of efficiency in the tourism industry;
development of tourism opportunities for particular segments of
the population, such as youth, minorities, or the economically
disadvantaged;
protection of the environment; and
maximization of tourism's contribution to the overall quality of life.





















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C. Comparison of the Structure, Budgets, and Staffing of the National
Tourist Organizations Surveyed
Table 7 provides a summary comparison of the form, budgets, and
staffing of the eight foreign national tourist organizations surveyed.
0 There are three key forms of national tourist organizations in the
eight governments surveyed:
State tourism secretariats (independent or within larger ministries);
government agencies or bureaus within larger departments; and
quasi-public tourism authorities or boards.
0 Three of the eight NTO's are State secretariats for tourism. The
Mexican Secretariat is independent; the French and Spanish Tourism
Secretariats are located within ministries charged with additional
responsibilities-the Ministry of Cultural Affairs and the
Environment in the case of France, and the Ministry of Commerce
and Tourism in the case of Spain.
o Two of the NTO's are government agencies within larger
departments. The Canadian Government Office of Tourism is located
within the Department of Industry, Trade, and Commerce. The
Japanese Department of Tourism is located within the Secretariat of
the Department of Transportation. Mexico has an independent
government agency-the National Tourism Council-which is
primarily responsible for international promotion; the Council,
however, reports to the State Tourism Secretariat for policy guidance
and budgetary approval.
0 The United Kingdom, Ireland, and Hong Kong all have tourist
authorities or boards which are quasi-public, government-funded
corporations which are able to carry out commercial activities and
which receive some funding in the form of subscriptions from the
Private sector. All of these boards look to a government department
or overall policy guidance and funding. In the United Kingdom,
responsibility for international and domestic tourism activities is
divided between the British Tourist Authority and three national
tourist boards for England, Scotland, and Wales.
The Japanese also have a quasi-public government-funded
organization-the Japan National Tourist Organization
(JNTO)-which is responsible for international promotion. JNTO
receives overall policy guidance and budget approval from the
Department of Tourism.
o One of the principal advantages of the quasi-public tourist authority or
board lies in its potential for flexible management, staffing and
operation in dealing with the commercial aspects of tourism
development and promotion. Government agencies and departments
frequently tend to be bureaucratized and "rigid" in adapting to and
serving the specialized needs of the industry and the traveling public.
The quasi-public authority has the capability for close liaison and
coordination with private sector interests and the consuming public.
Commonly, private sector interests are subscribing members of such
authorities and frequently they are asked to act as board directors.
0 One of the key advantages of the government agency as a national
tourist organization lies in its full capability to develop, interpret,
implement, and be responsive to national tourism policy and to
represent with authority within the government the interests of the






tourism industry. In most cases, the quasi-public tourist enterprise is
responsive to a bureaucratic office within a government department or
ministry which, in effect, has the real political authority and influence
through its powers to approve or disapprove budgetary allocations.
(Emphasis added.)
o Among the foreign governments surveyed, the average 1977 national
tourist organization budget was in the $20 million range, from a high
of $24.6 million for Canada to a low of $6.5 million for Hong Kong.'
o Among the six foreign governments which reported the size of staff
for their national tourism organizations, the average staff totals about
320 individuals. The smallest staffs belong to NTOs in Hong Kong
and Japan, with 152 and a total of 181 respectively. The largest staffs
belong to NTOs in the United Kingdom, with an estimated total of
more than 700, including the national tourist boards for England,
Scotland, and Wales.
o The majority of NTOs surveyed are organized internally along
functional lines into divisions, branches, or subsecretariats for tourism
marketing and development. Some NTOs have additional divisions or
independent departments for planning and/or research. In others,
these are subsumed within the marketing and development divisions.
In some cases, departments or bureaus for industry regulation and for
technical assistance are placed within divisions with combined
responsibility for development and industry relations. In other cases,
bureaus or offices with regulatory responsibilities are separated out,
reporting directly to the agency or department head. Officials in
several of the foreign governments indicated that internal
departmental structure was frequently modified to suit the
bureaucratic needs of top agency officials rather than necessarily to
expedite the effectiveness of the organization's operations.


















1 Spain, in 1975. had an estimated $25 million budget, but a large proportion of this was channeled Into
investment funds for hotel development. Budget figures should be used for purposes of general comparison
only.













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D. Comparison of Tourism Programs' Focus in the Eight Foreign
Governments Surveyed
Table 8 summarizes data on tourism technical assistance, planning,
development, and regulatory programs of the eight foreign governments
surveyed. Table 9 provides a summary of key characteristics of
international tourism promotional programs of the eight governments.
0 The NTOs of the eight governments have an average of 20.6 foreign
promotional offices. France has the largest number with 32, while
Hong Kong with nine has the smallest number. Several of the NTOs
share office space with their national airlines in some destinations to
reduce overhead costs of maintaining the offices.
0 All of the NTOs provide direct service for consumers through their
international promotion offices, although some clearly focus their
F promotional efforts on the travel trade. Most of the NTOs have at
east some street-level offices abroad.


48-414 0 79 4
















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22


E. Comparison of Tourism Coordinating Mechanisms
Table 10 compares tourism coordinating mechanisms.
0 Five of the eight governments reported the existence of a single
central inter-agency coordinating council or committee for tourism.
For the most part, these councils or committees are made up of
representatives of departmental or subdepartmental heads from
departments with programs having key impacts on tourism, in
addition to the head of the tourism agency or secretariat (who is
frequently chairman of the interagency coordinating body). In some
cases, these coordinating bodies have been set up by specific
legislation, in other cases by executive order. In most cases, the
councils meet at regularly specified times, with a general mandate to
advise the government on tourism policy, resolve conflict among
agencies, and eliminate duplication in tourism and tourism-related
programs.
For the most part, these coordinating councils of committees were
reported to operate with only partial success, with their chief
weaknesses being variously identified as:
a lack of clear mandate;
a lack of accountability to other than the executive head of the
government;
insufficient specification of procedures for conducting the business
of the council or committee;
insufficient staff support to make the council or committee truly
effective; and
insufficient high-level departmental representation.
0 Two of the eight governments-Canada and France-reported the
existence of a single chief central government/regional/local
government policy and planning coordinating body. Most of the
other governments had either a number of overlapping regional and
local coordinating bodies or handled regional and local coordination
through the regional offices of their NYOs.
o Two of the eight governments-Canada and France-reported the
existence of a single central government/private sector coordinating
and advisory body. Again, the other governments either handled such
coordination through their regional tourist organizations or through
links with a number of different private sector associations and ad
hoc advisory committees.







23






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24


REPORT FOR THE UNITED STATES SENATE BY ARTHUR D. LrTLE,. INC
The work for the Senate under Phase III involved an assessment of
selected key programs in 26 Federal agencies identified during earlier
study phases as having important impacts on tourism and travel. The
purpose of interviews with these agency personnel was to assess the
level of priority each agency placed on tourism and travel, to review
programs that significantly affected the tourism industry, and to
determine what obstacles to a more effective Federal response existed in
each agency.
The Phase III report set out:
A proposed national tourism policy for the United States;
General recommendations for programs to implement the policy;
Two recommended alternatives for a Federal interagency
coordinating mechanism (Policy Council);
Two recommended alternatives for a Federal/State/local
coordinating body (Planning Board); and
Two recommended alternatives for a Federal/private industry
coordinating body.
The Senate Committee on Commerce, Science, and Transportation
expressly disclaimed any approval or disapproval of the Arthur D.
Little, Inc., reports. However, the reports were printed and circulated.
At the Senate hearings on April 21, 1978, the Arthur D. Little study
team formally presented the National Tourism Policy Final Report to
the Committee in a public hearing. At that hearing, the ADL
representatives explained that they had recommended the following:
A national tourism policy which recognizes the importance of the
existing Federal role in such traditionally defined tourism and travel
areas as transportation and lodging as well as the importance of the
Federal commitment to support and enhance our recreational and
national heritage resources.
The national tourism policy should include at least seven principal
policy goals:
Optimize the contribution of the tourism and recreation industries
to economic prosperity, full employment, regional economic
development, and improved international balance of payments;
Make the opportunity for, and the benefits of travel and recreation
universally accessible to residents of the United States and foreign
countries;
Contribute to personal growth and education of the population,
and encourage their appreciation of the geography, history, and
ethnic diversity of the Nation through tourism and recreation;
Encourage the free and welcome entry of foreigners traveling to
the United States, consistent with the national interest in protecting
the revenue, and preventing the entrance of illegal aliens, and the
importation of prohibited merchandise at ports of entry;
Protect and preserve the historical and cultural foundation of the
Nation as a living part of community life and development, and to
insure future generations an opportunity to appreciate and enjoy
the rich heritage of the Nation;
Insure the compatibility of tourism and recreation policies and
activities with other national interests in energy development and
conservation, environmental protection, and judicious use of
natural resources; and






Harmonize, to the maximum extent possible, all Federal activities
supporting the needs of the general public and the public and
p private sectors of the tourism and recreation industries. Take a
leadership role with all concerned with tourism, recreation, and
national heritage preservation.
To implement the proposed national tourism policy, the Congress
should create two organizational entities to assure effective
programmatic interpretation of the olicy: a principal Federal travel
and recreation agency and a principal Federal interagency coordinating
council. The Congress should also encourage State and local
governments and the private sectors of the tourism and recreation
industries to create, in close cooperation with Federal officials, a
principal Federal/State/local coordinating body and a principal
Federal/private industry coordinating body for travel and recreation.
T''he proposed principal Federal travel and recreation agency-the
U.S. Travel and Recreation Agency-should be created as an executive
agency outside of existing departmental structures (headed by an
Administrator appointed by the President) through a consolidation of
the staff, budgets, and most activities now carried out by the U.S.
Travel Service, the Bureau of Outdoor Recreation, the National Visitor
Center of the National Park Service, and the Office of Archeology and
Historic Preservation of the National Park Service.
The programs in the U.S. Travel and Recreation Agency should
chiefly be concerned with the following areas: basic and applied
research in travel and recreation; assistance in and coordination of
tourism and recreation planning at the local, State, and national levels;
technical assistance, education, and informational clearinghouse services
to both industry and consumers; and consolidation of existing
grants-in-aid programs for the development of touristic, recreational
and national heritage resources, attractions, and facilities. International
tourism promotional activities should be stepped up, while domestic
promotional activities on the part of the Federal Government should be
limited to indirect support for State, local, and private sector
promotional activities.
The National Travel and Recreation Policy Council should be
established as an independent Federal policy coordinating body chaired
by a member of the President's domestic and international economic
advisory staff and consisting of the 18 department or agency heads
whose departments or agencies have important tourism and
recreation-related programs or programs which significantly impact on
tourism and recreation interests. The Policy Council would be charged
with monitoring Federal agencies* compliance with national tourism and
recreation policy and coordination of the policy's interpretation with
other national interests. To assure the effectiveness of the Council and
the cooperation of participating agencies, annual reports to the Congress
would be required.
State and local governments, working in coordination with Federal
officials, should be encouraged to establish an Intergovernmental Travel
and Recreation Planning Board as a principal Federal/State/local public
sector coordinating body made up of State and local travel and outdoor
recreation officials and representatives from the U.S. Travel and
Recreation Agency. The Planning Board's primary purpose would be to






coordinate State and local tourism and recreation interests with Federal
activities related to national tourism and recreation policies.
Private sector officials of the travel and recreation industries should
be encouraged to establish a Travel and Recreation Board as a principal
Federal/private industry coordinating body in tourism and recreation.
The Development Board would coordinate private sector interests with
Federal activities related to national tourism and recreation policies,
including identification of private sector problems, development of
industry programs, and reviewing, commenting, and making
recommendations of Federal tourism, recreation and heritage resource
preservation policies and programs to the U.S. Travel and Recreation
Agency and the National Fravel and Recreation Policy Council.
In addition to the recommendations the report contained drafts of
two alternative pieces of legislation to implement its two organizational
options. According to AD)L either option appeared to be achievable
within an annual increased expenditure range (from general revenue) of
$1.9 to $2.7 million. The first option involved consolidation of several
existing agencies into a new, separate entity. The second option
proposed to restructure completely the U.S. Travel Service.
Following these and several other days of hearings, the Senate bill,
S. 1097, was considered, ordered reported by the Committee, and
passed the Senate unanimously on May 14, 1979.











INTERNATIONAL TRAVEL ACT OF 1961
(Public Law 87-63)
(as amended through Public Law 94-55)
To strengthen the domestic and foreign commerce of the United States by providing
for the establishment of a United States Travel Service within the Department of
Commerce.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled That it is the purpose
of this Act to strengthen the domestic and foreign commerce of the
United States, and promote friendly understanding and appreciation of
the United States by encouraging foreign residents to visit the United
States and by facilitating international travel generally.
SEC. 2. In order to carry out the purposes of this Act the Secretary of
Commerce (hereafter in this Act referred to as the "Secretary") shall-
(I) develop, plan, and carry out a comprehensive program
designed to stimulate and encourage travel to the United States by
residents of foreign countries for the purpose of study, culture,
recreation, business, and other activities as a means of promoting
friendly understanding and good will among peoples of foreign
countries and of the United States;
(2) encourage the development of tourist facilities, low cost unit
tours, and other arrangements within the United States for meeting
the requirements of foreign visitors;
(3) foster and encourage the widest possible distribution of the
benefits of travel at the cheapest rates between foreign countries
and the United States consistent with sound economic principles;
(4) encourage the simplification, reduction, or elimination of
barriers to travel, and the facilitation of international travel
generally;
(5) collect, publish, and provide for the exchange of statistics and
technical information, including schedules of meetings, fairs, and
other attractions, relating to international travel and tourism; and
(6) encourage to the maximum extent feasible travel to and from
the United States on United States carriers.
SEC. 3. (a) In performing the duties set forth in section 2, the
Secretary-
(1) shall utilize the facilities and services of existing agencies of
the Federal Government to the fullest extent possible including the
maximum utilization of counterpart funds; and, to the fullest
extent consistent with the performance of their own duties and
functions, such agencies shall permit such utilization of facilities
and services;
(2) may consult and cooperate with individuals, businesses, and
organizations engaged in or concerned with international travel,
including local, State, Federal, and foreign governments, and
international agencies;
(27)


48-414 0 79 5






(3) may obtain by contract and otherwise the advice and services
of qualified professional organizations and personnel;
(4) after consultation with the Secretary of State, may establish
such branches in foreign countries, as he deems to be necessary
and desirable; and
(5) upon the application of any State or political subdivision or
combination thereof, or private or public nonprofit organization or
association, may make grants for projects designed to carry out the
purposes of this Act if he finds that such projects will facilitate and
encourage travel to any State or political subdivision or
combination thereof by residents of foreign countries. No financial
assistance will be made available under this clause unless the
Secretary determines that matching funds will be available from
State or other non-Federal sources and in no event will the
amount of any grant under this clause for any project exceed 50
per centum of the cost of such project. The Secretary is authorized
to establish such policies, standards, criteria, and procedures and to
prescribe such rules and regulations as he may deem necessary or
appropriate for the administration of this clause;
(6) may enter into contracts with private profit- or non-profit-
making individuals, businesses, and organizations for projects
designed to carry out the purposes of the Act whenever he
determines that such projects cannot be accomplished under the
authority of clause (5) of this subsection; and
(7) may make awards of merchandise manufactured and
purchased in the United States to travel agents and tour operators
in foreign countries as an incentive for their promotion of travel to
the United States by residents of foreign countries. The Secretary is
authorized to establish such policies, standards, criteria, and
procedures as he may deem necessary or appropriate for the
administration of this clause.
(b) The Secretary, under the authority of this Act, shall not provide
or arrange for transportation for, or accommodations to, persons
traveling between foreign countries and the United States in
competition with businesses engaged in providing or arranging for such
transportation or accommodations.
(c) Each recipient of assistance under clause (5) of subsection (a) of
this section shall keep such records as the Secretary shall prescribe,
including records which fully disclose the amount and disposition by
such recipient of the proceeds of such assistance, the total cost of the
project or undertaking in connection with which such assistance is given
or used, and the amount of that portion of the cost of the project or
undertaking supplied by other sources, and such other records as will
facilitate an effective audit.
(d) The Secretary and the Comptroller General of the United States,
or any of their duly authorized representatives shall have access for the
purpose of audit and examination to any books, documents, papers, and
records of the recipients that are pertinent to the assistance received
under clause (5) of subsection (a) of this section.
SEC. 4. There is established in the Department of Commerce a
United States Travel Service which shall be headed by an Assistant
Secretary of Commerce for Tourism who shall be appointed by the






President, by and with the advice and consent of the Senate, and who
shall report directly to the Secretary. All the duties and responsibilities
of the Secretary under this Act shall be exercised directly by the
Secretary or by the Secretary through the Assistant Secretary of
Commerce.
SEC. 5. The Secretary shall submit semi annually to the President and
to the Congress a report on his activities under this Act.
SEC. 6. For the purpose of carrying the provisions of this Act, there is
authorized to be appropriated an aggregate amount not in excess of
(1) $15,000,000 for the fiscal year ending June 30, 1974; (2) $20,000,000
for the fiscal year ending June 30, 1975; (3) $25,000,000 for the fiscal
year ending June 30, 1976: (4) $5,000,000 for the transition period of
July 1, 1976, through September 30, 1976; (5) $25.000,000 for the fiscal
year ending September 30, 1977; (6) $30,000,000 for the fiscal year
ending September 30, 1978; and (7) $30,000,000 for the fiscal year
ending September 30, 1979.
SEC. 7. As used in this Act, the term "United States" and the term
"State" are defined to include the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands, Guam, American
Samoa, and the Trust Territory of the Pacific Islands.
SEC. 8. This Act may be cited as the "International Travel Act of
1961".













Calendar No. 133


96TH CONGRESS
1ST SESSION


S. 1097


[Report No. 96-126]

To establish a national tourism policy, a Cabinet level coordinating council and a
nonprofit corporation as an implementing agency to carry out the national
tourism policy.




IN THE SENATE OF THE UNITED STATES
MAY 8 (legislative day, APRIL 9), 1979
Mr. CANNON, from the Committee on Commerce, Science, and Transportation,
reported the following bill; which was read twice and ordered placed on the
calendar




A BILL
To establish a national tourism policy, a Cabinet level coordinat-
ing council and a nonprofit corporation as an implementing
agency to carry out the national tourism policy.

1 Be it enacted by the Senate and House of Representa-
2 ties of the United States of America in Congress assembled,
3 That this Act may be cited as the "National Tourism Policy
4 Act".


(31)




32


2
1 TITLE I-NATIONAL TOURISM POLICY
2 SEC. 101. FINDINGS AND PURPOSE.

3 (a) The Congress finds that-
4 (1) the tourism and recreation industries are im-

5 portant to the United States, not only because of the

6 numbers of people they serve and the vast human, fi-
7 nancial, and physical resources they employ, but be-

8 cause of the great benefits tourism, recreation, and re-
9 lated activities confer on individuals and on society as

10 a whole;

11 (2) the Federal Government for many years has

12 encouraged tourism and recreation implicitly in its stat-

13 utory commitments to the shorter workyear and to the

14 national passenger transportation system, and explicitly

15 in a number of legislative enactments to promote tour-

16 ism, and support development of outdoor recreation,

17 cultural attractions, and historic and natural heritage

18 resources;
19 (3) as incomes and leisure time continue to in-

20 crease, and as our economic and political systems de-

21 velop more complex global relationships, tourism and

22 recreation will become ever more important aspects of

23 our daily lives and our growing leisure time; and

24 (4) the existing extensive Federal Government in-

25 volvement in tourism, recreation, and other related ac-




33


3
1 tivities needs to be better coordinated to effectively re-
2 spond to the national interests in tourism and recrea-
3 tion and where appropriate, to meet the needs of State
4 and local governments and the private sector.
5 (b) It is the purpose of this Act to establish a coopera-
6 tive effort between the Federal Government and State and
7 local governments and other concerned public and private or-

8 ganizations, to use all practicable means and measures, in-
9 cluding financial and technical assistance, to implement a na-
10 tional tourism policy that will-
11 (1) optimize the contribution of the tourism and
12 recreation industries to economic prosperity, full em-
13 ployment, and the international balance of payments of
14 the Nation;
15 (2) make the opportunity for and benefits of tour-
16 ism and recreation in the United States universally ac-
17 cessible to residents of the United States and foreign
18 countries and to insure that present and future genera-

19 tions be afforded adequate tourism and recreation re-
20 sources;
21 (3) contribute to personal growth, health, educa-
22 tion, and intercultural appreciation of the geography,
23 history, and ethnicity of the United States;
24 (4) encourage the free and welcome entry of indi-
25 viduals traveling to the United States, in order to en-




34


4
1 hance international understanding and goodwill, con-
2 sistent with immigration laws, the laws protecting the

3 public health, and laws governing the importation of
4 goods into the United States;
5 (5) eliminate unnecessary trade barriers to the

6 United States tourism industry operating throughout
7 the world;

8 (6) encourage competition in the tourism industry
9 and maximum consumer choice through the continued
10 viability of the retail travel agent industry and the in-
11 dependent tour operator industry;
12 (7) promote the continued development and avail-

13 ability of alternative personal payment mechanisms
14 which facilitate national and international travel;

15 (8) promote quality, integrity, and reliability in all

16 tourism and tourism-related services offered to visitors
17 to the United States;

18 (9) preserve the historical and cultural foundations
19 of the Nation as a living part of community life and

20 development, and to insure future generations an op-
21 portunity to appreciate and enjoy the rich heritage of

22 the Nation;

23 (10) insure the compatibility of tourism and recre-
24 ation with other national interests in energy develop-




35


5
1 ment and conservation, environmental protection, and
2 the judicious use of natural resources;
3 (11) assist in the collection, analysis, and dissemi-

4 nation of data which accurately measure the economic
5 and social impact of tourism to and in the United
6 States, in order to facilitate planning in the public and
7 private sector; and

8 (12) harmonize, to the maximum extent possible,
9 all Federal activities in support of tourism and recrea-

10 tion with the needs of the general public and the
11 States, territories, local governments, and the private
12 and public sectors of the tourism and recreation indus-

13 try, and to give leadership to all concerned with tour-
14 ism, recreation, and national heritage preservation in
15 the United States.

16 TITLE 11-NATIONAL TOURISM POLICY COUNCIL
17 SEC. 201. ESTABLISHMENT OF COUNCIL.

18 (a) There is established as an independent entity in the
19 executive branch a National Tourism Policy Council (herein-

20 after referred to as the "Council"). The Council shall be the
21 principal coordinating body for policies, programs and issues
22 relating to tourism, recreation, or national heritage resources

23 involving Federal departments, agencies, or other entities.

24 (b) The Council shall consist of-




36


6
1 (1) the Assistant to the President for Domestic
2 Affairs and Policy, who shall serve as the Chairman of
3 the Council;
4 (2) the President of the United States Travel and
5 Tourism Development Corporation (as created in title
6 1IT of this Act), who shall serve as the Vice Chairman
7 of the Council and who shall act as Chairman of the
8 Council in the absence of the Chairman;
9 (3) the Secretaries of the Department of Trans-
10 portation; the Department of the Interior; the Depart-
11 ment of Commerce; the Department of State; the De-
12 apartment of Agriculture; the Department of Labor; the
13 Department of Treasury; the Department of Health,
14 Education, and Welfare; the Department of Energy;
15 the Department of Defense; the Department of Hous-
16 ing and Urban Development;
17 (4) the Attorney General of the United States;
18 (5) the Chairmen of the Civil Aeronautics Board;
19 the Interstate Commerce Commission; and the Federal
20 Trade Commission; and
21 (6) the Administrators of the International Comn-
22 munication Agency and the Environmental Protection
23 Agency.
24 (c) Each member of the Council, other than the Chair-
25 man and the Vice Chairman may designate an alternate, who




37


7
1 shall serve as a member of the Council whenever the regular
2 member is unable to attend a meeting of the Council or any
3 committee of the Council. A member of the Council who as-
4 signs an alternate to serve as a member of the Council on
5 those occasions when the regular member is unable to attend
6 a meeting shall make such assignment for the remainder of
7 the member's term on the Council. Any such designated al-
8 ternate shall be selected from individuals who exercise sig-
9 nificant decisionmaking authority in the Federal agency in-
10 volved and shall be authorized to make decisions on behalf of
11 the member for whom he is serving.
12 (d) Whenever the Council, or a committee of the Coun-
13 cil, considers matters that affect the interests of Federal
14 agencies that are not represented on the Council or the com-
15 mittee, the Chairman may invite the heads of such agencies,
16 or their alternates, to participate in the deliberations of the
17 Council or committee.
18 (e) The Council shall conduct its first meeting not later
19 than 90 days after the enactment of this Act. Thereafter the
20 Council shall meet not less than once each 90 days.
21 (f) All meetings of the Council, including any committee
22 of the Council, shall be open to the public.
23 (g) The Chairman, with the approval of the Council,
24 shall appoint an Executive Director who shall serve in a full-




38


8
1 time capacity as the chief executive officer of the Council.
2 The Executive Director-

3 (1) shall be an individual who by virtue of train-
4 ing, experience, and attainments is exceptionally well-

5 qualified to appraise programs and activities of the
6 Federal Government in light of the policies set forth in
7 title I of this Act and to formulate recommendations

8 for the improvement of such programs and activities;
9 (2) shall be appointed without regard to title 5 of
10 the United States Code governing appointments in the
11 competitive service;
12 (3) shall be compensated at the rate now or here-

13 after prescribed for level V of-the Executive Schedule

14 by section 5316 of title 5, United States Code; and
15 (4) shall not concurrently hold any other office or

16 position of employment with the United States.

17 (h) Members of the Council shall serve without addition-
18 al compensation, but shall be reimbursed for actual and nec-
19 essary expenses, including travel expenses, incurred by them

20 in carrying out the duties of the Council.

21 SEC. 202. FUNCTIONS OF POLICY COUNCIL.
22 (a) The Council shall be the principal coordinating body

23 for policies, programs, and issues relating to tourism, recrea-

24 tion, or national heritage resources involving Federal depart-




39


9
1 ments, agencies, or other entities. Among other things, the

2 Council shall-

3 (1) direct Council staff activities, such as the

4 study of appropriate issues and the preparation of re-

5 ports;

6 (2) approve or disapprove the Council staff recom-
7 mendations and reports;

8 (3) coordinate the policies and programs of
9 member agencies that have a significant effect on tour-

10 ism, recreation, and national heritage preservation;

11 (4) develop areas of cooperative program activity;
12 (5) resolve interagency program and policy con-

13 flicts;

14 (6) seek and receive concerns and views of State

15 and local governments and the private sector with re-

16 spect to Federal programs and policies deemed to con-
17 flict with the orderly growth and development of tour-

18 ism; and

19 (7) refer problems to the Council's policy commit-

20 tees for study, recommendations, and resolution.

21 SEC. 203. ADMINISTRATIVE POWERS AND PROVISIONS.

22 In order to carry out the provisions of this title-

23 (1) the Council may promulgate, issue, rescind,
24 and amend regulations governing the manner or oper-

25 ation of the Council;




40


10
1 (2) the Executive Director, with the approval of
2 the Council, may appoint and fix the compensation of
3 such employees, according to the provisions of title 5,
4 United States Code, governing appointments in the
5 competitive service, as may be necessary to carry out
6 the functions of the Council: Provided, That no such
7 employee (other than the Executive Director) shall be
8 compensated at a rate exceeding the rate now or here-
9 after prescribed for positions under GS-15 of the Gen-
10 eral Schedule by section 5332 of title 5 of the United
11 States Code;
12 (3) the Executive Director, with the approval of
13 the Council, may obtain the services of experts and
14 consultants in accordance with section 3109 of title 5,
15 United States Code, at rates for individuals not to
16 exceed the daily equivalent now or hereafter prescribed
17 for positions under GS-18 of the General Schedule by
18 section 5332 of title 5 of the United States Code;
19 (4) the Executive Director, with the approval of
20 the Council, may request directly from any Federal de-
21 apartment or agency such personnel, information, serv-
22 ices, or facilities, on a compensated or uncompensated
23 basis, as he deems necessary to carry out the functions
24 of the Council;









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(5) each Federal department or agency shall fur-

nish the Council with such information, services, and

facilities as it may request to the extent permitted by

law and within the limits of available funds;

(6) Federal agencies and departments may, in

their discretion, detail to temporary duty with the

Council, such personnel as the Council may request for

carrying out the functions of the Council, each such

detail to be without loss of seniority, pay, or other em-

ployee status; and

(7) the General Services Administration shall pro-

vide administrative services for the Council on a reim-

bursable basis.

SEC. 204. EXECUTIVE COMMITTEE.

The Council shall have an Executive Committee which

shall be comprised of the Council Chairman, the Council Vice

Chairman, and the Secretaries of the Department of Com-

merce, the Department of the Interior, the Department of

Transportation, the Department of State, the Department of

Agriculture, and the Department of Labor. The Executive

Committee of the Council shall have such authority as the

Council may from to time delegate to it, Provided, That any

such delegation shall be consistent with the other provisions

of this title and shall not relieve the Council of full responsi-

bility for the carrying out of its duties and functions.




42


12
1 SEC. 205. POLICY COMMITTEES.
2 (a) The Council shall have 4 Policy Committees as fol-
3 lows:
4 (1) The Transportation and Facilitation Policy

5 Committee which shall consist of the heads of the fol-
6 lowing agencies or their designated representatives: the
7 United States Travel and Tourism Development Cor-

8 portion, the Federal Maritime Administration, the
9 Federal Highway Administration, the Federal Aviation
10 Administration, the Urban Mass Transportation Ad-
11 ministration, the United States Coast Guard, the

12 Bureau of Economic and Business Affairs, the Depart-
13 ment of Energy, the Immigration and Naturalization
14 Service, the Animal and Plant Health Inspection Serv-
15 ice, the United States Customs Service, the Civil
16 Aeronautics Board, the Interstate Commerce Commis-
17 sion, the Federal Trade Commission, the Bureau of
18 Security and Counselor Affairs, and the National Rail-
19 road Passenger Corporation.

20 (2) The Economic Development Policy Committee
21 which shall consist of the heads of the following agen-
22 cies, or their designated representatives: the United
23 States Travel and Tourism Development Corporation,
24 the Economic Development Administration, the Indus-
25 try and Trade Administration, the Bureau of the
26 Census, the Rural Development Service, the Regional







13
1 Commissions of the Department of Commerce, the In-
2 ternal Revenue Service, the Occupational Safety and
3 Health Administration, the Employment Standards Ad-
4 ministration, the Bureau of Labor Statistics, the
5 Bureau of Indian Affairs, the Economic Research

6 Service, the Farmers Home Administration, the Coop-
7 erative State Research Service, the Department of

8 Energy, the Office of Community Planning and Devel-
9 opment of the Department of Housing and Urban De-
10 velopment, the Small Business Administration, and the
11 Appalachian Regional Commission.

12 (3) The Energy and Natural Resources Policy
13 Committee which shall consist of representatives of the
14 following agencies, or their designated representatives:
15 the United States Travel and Tourism Development
16 Corporation, the Department of Energy, the National
17 Oceanic and Atmospheric Administration, the Bureau

18 of Reclamation, the Bureau of Land Management, the
19 United States Forest Service, the National Park Serv-
20 ice, the United States Fish and Wildlife Service, the

21 Army Corps of Engineers, and the Environmental Pro-
22 tection Agency.

23 (4) The Health, Education, and Cultural Policy
24 Committee which shall consist of heads of the follow-

25 ing agencies, or their designated representatives: the




44


14
1 United States Travel and Tourism Development Cor-
2 portion, the National Institutes of Health, the Nation-
3 al Institute of Mental Health, the Office of Education,
4 the National Institute of Education, the Extension
5 Service, the National Endowment for the Arts, the

6 National Endowment for the Humanities, the Interna-
7 tional Communication Agency, and the Smithsonian
8 Institution.
9 (b) Each of the Policy Committees shall review and
10 comment on Federal agency program and planning docu-
11 ments that will have a substantial effect on tourism, recrea-

12 tion and heritage resource preservation and that are appro-

13 private to the Committee's functional responsibilities and
14 agency representation. Each Policy Committee may also ini-
15 tiate its own agenda and discuss tourism, recreation, and
16 heritage resource preservation related issues, and problems
17 referred to it by the tourism and recreation industry through
18 the Council.
19 (c) The members of each of the Policy Committees shall
20 from time to time elect one of its members to serve as Chair-
21 man of the Policy Committee and one or more of its members
22 to serve as Vice Chairman or Vice Chairmen.

23 (d) Each head of an agency serving on a Policy Commit-
24 tee may designate an alternate to serve for him on the Policy

25 Committee, so long as such alternate is designated perma-







15
1 nently for the representative whom he replaces and is em-

2 powered to act fully for the agency or entity whom he repre-

3 sents.

4 (e) Each of the Policy Committees shall hold its initial
5 meeting within 90 days of the enactment of this Act and

6 thereafter shall meet at the call of the Chairman of the Policy

7 Committee or the Chairman of the Council, but not less than
8 six times a year.

9 (f) Members of a Policy Committee shall serve without

10 additional compensation, but shall be reimbursed for actual
11 and necessary expenses, including travel expenses, incurred

12 by them in carrying out the duties of the Policy Committee.

13 SEC. 206. ANNUAL REPORT TO THE PRESIDENT AND CON-

14 GRESS.

15 The Council shall, beginning with the first complete

16 fiscal year following the date of enactment of this Act, submit

17 an annual report for the preceding fiscal year, to the Presi-

18 dent for transmittal to Congress on or before the 31st day of
19 December of each year. The report shall include-

20 (1) a comprehensive and detailed report of the ac-

21 tivities and accomplishments of the Council and its

22 Policy Committees;

23 (2) the results of Council efforts to coordinate the

24 policies and programs of member agencies that have a

25 significant effect on tourism, recreation, and national




46


16
1 heritage preservation, resolve interagency conflicts,

2 and develop areas of cooperative program activity;

3 (3) an analysis of problems referred to the Council
4 by State and local governments, the tourism industry,

5 the United States Travel and Development Corpora-

6 tion, or any of the Council's Policy Committees along
7 with a detailed statement of any actions taken or an-

8 ticipated to be taken to resolve such problems; and
9 (4) such recommendations as the Council deems

10 appropriate.
11 SEC. 207. AUTHORIZATIONS OF APPROPRIATIONS.
12 To carry out the provisions of title II of this Act, there
13 is hereby authorized to be appropriated for each of the fiscal

14 years ending on September 30, 1980, and 1981, the sum of

15 $500,000.
16 TITLE m-THE UNITED STATES TRAVEL AND

17 TOURISM DEVELOPMENT CORPORATION

18 SEC. 301. PURPOSE.
19 It is the purpose of this title to establish a nonprofit
20 corporation, to be known as the "United States Travel and

21 Tourism Development Corporation".

22 SEC. 302. CONGRESSIONAL DECLARATION OF POLICY.

23 The Congress finds and declares-




47


17
1 (1) that it is in the national interest to encourage
2 the orderly growth and development of tourism to and

3 within the United States;
4 (2) that orderly growth and development of tour-

5 ism depends on the efforts of the public and private

6 sectors of that industry to assure that the objectives of
7 the national tourism policy are implemented to the

8 maximum extent consistent with other public policy ob-
9 jectives;

10 (3) that orderly growth and development of tour-
11 ism, while matters for regional, State, local, and pri-
12 vate development, are also of appropriate and impor-
13 tant concern to the Federal Government;

14 (4) that it furthers the national interests to assure
15 that the extensive Federal policy and programmatic
16 involvement in tourism is responsive to the needs and

17 interests of the public and private sectors of that
18 industry;

19 (5) that in view of the importance of travel and
20 tourism to the economy of the United States, and the
21 pervasive Federal policy and programmatic involve-

22 ment in tourism, it is necessary and appropriate for the

23 Federal Government to complement, assist and support
24 mechanisms that will most effectively assure implemen-
25 station of the national tourism policy; and




48


18
1 (6) that a federally chartered, nonprofit corpora-

2 tion should be created to promote and facilitate the or-

3 derly growth and development of tourism and to assist
4 in the implementation of the national tourism policy.
5 SEC. 303. CORPORATION ESTABLISHED.

6 There is established a nonprofit corporation, to be
7 known as the "United States Travel and Tourism Develop-

8 ment Corporation", which shall not be an agency or estab-
9 lishment of the United States Government. The Corporation

10 shall be subject to the provisions of this Act, and, to the
11 extent consistent with this Act, to the District of Columbia
12 Nonprofit Corporation Act.
13 SEC. 304. BOARD OF DIRECTORS.

14 (a) The Corporation shall have a Board of Directors

15 (hereinafter referred to as the "Board"), consisting of 15
16 members appointed by the President, by and with the advice

17 and consent of the Senate. Not more than 8 members of the

18 Board may be members of the same political party.
19 (b) The members of the Board (1) shall be appointed

20 from among citizens of the United States (not regular full-
21 time employees of the United States) who are senior execu-

22 tive officers of tourism corporations and other organizations

23 representative of such segments of the tourism industry as,

24 but not limited to, transportation, lodging, wholesale and

25 retail travel sales, employee relations, attractions and out-







19
1 door amusement facilities, recreation, heritage resources,
2 consumers, convention and visitor bureaus, travel trade asso-

3 ciations and elected officials of cities and States; and (2) shall
4 be selected so as to provide as nearly as practicable a broad
5 representation of different geographical regions within the

6 United States and of the diverse and varied segments of the
7 tourism industry. At least one member of the Board shall be

8 a consumer advocate/ombudsman from the nonprofit sector
9 of the organized public interest community, and at least one
10 member of the Board shall be a senior representative from a
11 labor organization representing employees in the tourism in-

12 dustry.

13 (c) The members of the initial Board of Directors shall
14 be appointed by the President within 120 days of the enact-
15 ment of this Act and shall serve as incorporators and take

16 whatever actions are necessary to establish the Corporation
17 as expeditiously as possible under the District of Columbia
18 Nonprofit Corporation Act.

19 (d) The term of office of each member of the Board shall
20 be 3 years; except that (1) any member appointed to fill a

21 vacancy occurring prior to the expiration of the term for
22 which his predecessor was appointed shall be appointed for
23 the remainder of such term; and (2) the terms of office of
24 members first taking office shall begin on the date of incorpo-
25 ration and shall expire, as designated at the time of their




50


20
1 appointment, five at the end of the 1st year, five at the end of
2 the 2d year, and five at the end of the 3d year. No member

3 shall be eligible to serve in excess of 2 consecutive terms of 3

4 years each. A member who does not regularly attend meet-
5 ings of the Board shall be replaced. Notwithstanding the pre-

6 ceding provisions of this paragraph, a member whose term
7 has expired mnay serve until a successor has qualified.

8 (e) Any vacancy in the Board shall not affect its power,
9 but shall be filled in the manner in which the original ap-
10 pointment was made.
11 (f) A majority of the directors shall constitute a quorum

12 and action shall be taken only by a majority vote of those

13 present.
14 SEC. 305. ELECTION OF CHAIRMAN: COMPENSATION.

15 (a) The President shall designate one of the members

16 first appointed to the Board as Chairman and thereafter the
17 members of the Board shall annually elect one of their

18 number as Chairman. The members of the Board shall also

19 elect one or more of them as Vice Chairman or Vice Chair-

20 men.

21 (b) The members of the Board shall not, by reason of
22 such membership, be deemed to be employees of the United

23 States. Members of the Board shall serve without compensa-

24 tion, but shall be reimbursed for actual and necessary ex-







21
1 penses, including travel expenses, incurred by them in carry-

2 ing out the duties of the Board.

3 SEC. 306. OFFICERS AND EMPLOYEES.
4 (a) The Corporation shall have a President, and such

5 other officers as may be named and appointed by the Board

6 for terms and at rates of compensation fixed by the Board.
7 No individual other than a citizen of the United States may

8 be an officer of the Corporation. No officer who is an em-
9 ployee of the Corporation may receive any salary or other

10 compensation from any source other than the Corporation
11 during the period of his employment by the Corporation. All
12 officers shall serve at the pleasure of the Board. The officers

13 and employees of the Corporation shall not be deemed to be

14 employees of the United States.
15 (b) Except as provided in the second sentence of section

16 304(a) of this Act, no political test or qualification shall be

17 used in selecting, appointing, promoting, or taking other per-

18 sonnel actions with respect to officers, agents, and employees
19 of the Corporation.

20 SEC. 307. NONPROFIT AND NONPOLITICAL NATURE OF THE

21 CORPORATION.
22 (a) The Corporation shall have no power to issue any

23 shares of stock, or to declare or pay any dividends.

24 (b) The income and assets of the Corporation shall not

25 be used for any purpose other than carrying out the purposes




52


22
1 of the Corporation as set forth in this title, and no part of
2 such income or assets shall inure to the benefit of any direc-
3 tor, officer, employee, or any other individual except as

4 salary or reasonable compensation for services.
5 (c) The Corporation may not contribute to or otherwise
6 support any political party or candidate for elective public
7 office.
8 SEC. 308. PURPOSES AND ACTIVITIES OF THE CORPORATION.
9 (a) In order to achieve the objectives and to carry out
10 the purposes of this title the Corporation is authorized to
11 assist the Congress of the United States, the National Tour-

12 ism Policy Council, all Federal agencies having policy and
13 programmatic responsibilities affecting tourism, and the

14 public and private sectors of the tourism industry.
15 (b) The primary purpose and activity of the Corporation
16 shall be developing and administering a comprehensive tour-
17 ism program designed to stimulate and encourage travel to
18 the United States by residents of other countries for the pur-
19 poses of study, culture, international congresses, recreation,
20 business, and other activities. The Corporation's activities
21 may not compete with activities of any State, city, or private

22 agency.

23 (c) Included in the activities of the Corporation author-

24 ized for accomplishment of the purposes set forth in this title,

25 are, among others not specifically named-




53


23
1 (1) establishing branch offices in foreign countries
2 and facilitating services at United States ports-of-entry
3 without, to the maximum extent feasible, consultation
4 with the Secretary of State or other Government agen-
5 cies;

6 (2) consulting with foreign countries on travel and
7 tourism matters and, in accordance with applicable

8 law, representing United States travel and tourism in-
9 terests in international meetings, conferences, and ex-
10 positions;
11 (3) participating as a party in interest in proceed-
12 ings before Federal agencies when such initiation or in-
13 tervention is necessary to implement or further the na-
14 tional tourism policy as set forth in title I of this Act;

15 (4) monitoring the existing and proposed policies
16 and programs significantly affecting tourism of all Fed-

17 eral agencies to ascertain whether, insofar as consist-

18 ent with other public policy objectives, they are in fur-

19 therance of the objectives of the national tourism

20 policy, and reporting the results of its monitoring activ-

21 ities at least semiannually to the Congress and the Na-
22 tional Tourism Policy Council, or more frequently if

23 necessary;

24 (5) monitoring the policies and programs signifi-

25 cantly affecting tourism of all Federal agencies for the




54


24
1 purpose of ascertaining instances of intraagency and
2 interagency duplication or contradiction and reporting

3 the results of its monitoring activities at least semian-
4 nually to the concerned agencies, the Congress, and

5 the National Tourism Policy Council, or more fre-
6 quently if necessary;
7 (6) developing and administering a comprehensive

8 program relating to industry information, data service,
9 training and education, and technical assistance;
10 (7) developing and administering a comprehensive
11 program relating to consumer information, protection,
12 and education;

13 (8) developing a program to seek and to receive
14 information on a continuing basis from the tourism in-

15 dustry, including consumer and travel trade associ-
16 nations, regarding needs and interests which should be

17 met by an agency or program, and directing that infor-
18 mation to the appropriate agency; and

19 (9) encouraging to the maximum extent feasible
20 travel to and from the United States on United States
21 carriers.

22 SEC. 309. ADMINISTRATIVE POWERS AND PROVISIONS.

23 (a) To carry out the purposes and activities of the Cor-
24 portion as set forth in section 308 of this Act, the Corpora-

25 tion shall have the usual powers conferred upon a nonprofit







25
1 corporation by the District of Columbia Nonprofit Corpora-

2 tion Act to the extent that such powers are not inconsistent
3 with this Act. In addition the Corporation is authorized to-
4 (1) enter into such contracts, agreements, or other

5 transactions as the Board of Directors deems appropri-
6 ate. Provided, That in entering into any contract,

7 agreement, or transaction the Corporation shall rely on
8 competitive bidding to the maximum extent practicable;
9 (2) accept in the name of the Corporation and

10 employ or dispose of in furtherance of the objectives of
11 this title any money, or property, real, personal, or
12 mixed, tangible or intangible, received by gift, devise,
13 bequest, or otherwise;

14 (3) appoint such officers and employees as the
15 Board deems necessary, and fix their compensation

16 without regard to the provisions of chapter 51 and sub-

17 chapter HElI of chapter 53 of title 5, United States
18 Code, except that no officer or employee of the Corpo-
19 ration may be compensated in excess of the rates now

20 or hereafter prescribed for level I of the Executive

21 Schedule under section 5312 of title 5 of the United
22 States Code;
23 (4) obtain the services of experts and consultants

24 without regard to section 3109 of title 5 of the United

25 States Code except that no such expert or consultant


55




56


26
1 may be compensated at rates which exceed the daily
2 equivalents of rates now or hereafter prescribed for

3 GS-18 of the General Schedule by section 5332 of
4 title 5 of the United States Code;
5 (5) accept voluntary and uncompensated services
6 of attorneys, consultants, and experts notwithstanding
7 any other provision of law;
8 (6) appoint without compensation, such advisory
9 committees as the Board deems appropriate; and
10 (7) accept and use with their consent, with or
11 without reimbursement, such personnel, services,
12 equipment, and facilities of agencies of the Federal
13 Government, State governments, or local political sub-
14 divisions thereof, as are necessary to conduct the activ-
15 ities of the Corporation efficiently.
16 (b) Upon request made by the President of the Corpora-
17 tion, each Federal agency is authorized and directed-
18 (1) to make its services, personnel, and facilities
19 available to the greatest practicable extent to assist the
20 Corporation in the performance of its functions; and
21 (2) to furnish to the Corporation, subject to the
22 provisions of applicable law, such information, sugges-
23 tions, estimates, and statistics as the President of the
24 Corporation may request.
25 (c) The Corporation may not-




57


27
1 (1) provide or arrange for transportation or ac-
2 commodations for persons traveling between other

3 countries and the United States, or between points
4 within the United States, in competition with busi-
5 nesses engaged in providing or arranging for such

6 transportation or accommodations;
7 (2) operate industry trade shows or related activi-

8 ties within the United States or provide personnel or
9 financial assistance for such trade shows or activities;
10 (3) promulgate any rules or regulations;
11 (4) solicit dues or memberships from any State,
12 city, or private agency;

13 (5) lend money to employees; and
14 (6) own stock in another corporation.
15 SEC. 310. REPORT TO CONGRESS.
16 The Corporation shall, beginning with the first complete
17 fiscal year following the date of enactment of this Act, submit
18 an annual report for the preceding fiscal year, to the Presi-

19 dent for transmittal to the Congress on or before the 31st day
20 of December of each year. The report shall include a compre-
21 hensive and detailed report of the Corporation's operations,
22 activities, financial condition, and accomplishments and may

23 include such recommendations as the Corporation deems ap-
24 propriate.




58


28
1 SEC. 311. RECORDS AND AUDIT.
2 (a) The accounts of the Corporation shall be audited an-
3 nually in accordance with generally accepted auditing stand-
4 ards by independent certified public accountants or independ-
5 ent licensed public accountants certified or licensed by a reg-
6 ulatory authority of a State or other political subdivision of
7 the United States. The audits shall be conducted at the place
8 or places where accounts of the Corporation are normally
9 kept. All books, accounts, financial records, reports, files and

10 all other papers, things or property belonging to or in use by
11 the Corporation and necessary to facilitate the audits shall be
12 made available to the person or persons conducting the
13 audits, and full facilities for verifying transactions with the
14 balances or securities held by depositories, fiscal agents, and
15 custodians shall be afforded to such person or persons.
16 (b) The report of each such independent audit shall be
17 included in the annual report required by section 310. The

18 audit report shall set forth the scope of the audit and include
19 such statements as are necessary to present fairly the Corpo-
20 ration's assets and liabilities, surplus or deficit, with an anal-
21 ysis of the changes therein during the year, supplemented in

22 reasonable detail by a statement of the sources and applica-

23 tion of funds, together with the independent auditor's opinion
24 of those statements.

25 (c)(1) The financial transactions of the Corporation for
26 any fiscal year during which Federal funds are available to




59


29
1 finance any portion of its operations may be audited by the
2 General Accounting Office in accordance with the principles

3 and procedures applicable to commercial corporate transac-
4 tions and under such rules and regulations as may be pre-
5 scribed by the Comptroller General of the United States. Any

6 such audit shall be conducted at the place or places where
7 accounts of the Corporation are normally kept. The repre-

8 sentatives of the General Accounting Office shall have access
9 to all books, accounts, records, reports, files, and all other
10 papers, things, or property belonging to or in use by the Cor-
11 portion pertaining to its financial transactions and necessary
12 to facilitate the audit, and they shall be afforded full facilities

13 for verifying transactions with the balances of securities held

14 by depositories, fiscal agents, and custodians. All such books,
15 accounts, records, reports, files, papers, and property of the

16 Corporation shall remain in the possession and custody of the

17 Corporation.

18 (2) A report'of each such audit shall be made by the
19 Comptroller General to the Congress. The report to the Con-
20 gress shall contain such comments and information as the

21 Comptroller General may deem necessary to inform Con-

22 gress of the financial operations and condition of the Corpo-

23 ration, together with such recommendations with respect
24 thereto as he may deem advisable. The report shall also show

25 specifically any program, expenditure, or other financial




60


30
1 transaction or undertaking observed in the course of the
2 audit, which in the opinion of the Comptroller General, has
3 been carried on or made without authority of law. A copy of
4 each report shall be furnished to the President and to the
5 Corporation at the time submitted to the Congress.
6 SEC. 312. FUNDING STUDY; AUTHORIZATION.
7 (a) The Corporation shall immediately undertake a corn-
8 prehensive study of the funding levels required to effectively
9 implement a comprehensive tourism development program
10 and all alternative funding measures other than direct Treas-
11 ury funding and report its findings and recommendations to
12 the Congress and the President within 6 months of its incor-
13 portion.
14 (b) There is authorized to be appropriated for the ex-
15 penses of the Corporation $9,500,000 for the fiscal year
16 ending September 30, 1980. Funds appropriated for any
17 fiscal year shall remain available for obligation until expend-
18 ed, but no more than 5 per centum of the funds appropriated
19 in any fiscal year may be used for the general administrative
20 costs of the Corporation, the salaries or related expenses of
21 Corporation personnel and members of the Board, or for ex-
22 penses of consultants and advisers to the Corporation.
23 (c) Nothing contained in this Act shall be construed to
24 commit the Federal Government to provide any sums for the
25 payment of any obligation of the Corporation which exceeds

26 amounts provided in advance in appropriation Acts.







31
1 SEC. 313. TRANSFER OF FUNCTIONS.
2 (a) Within 180 days after the incorporation of the

3 United States Travel and Tourism Corporation pursuant to
4 this title, the Corporation and the United States Travel Serv-
5 ice (hereinafter referred to as the Travel Service) shall take
6 such steps as are necessary to transfer to the Corporation-

7 (1) the assets, funds, supplies, materials, equip-
8 ment, and records of the Travel Service;

9 (2) the rights, privileges, powers, duties, and li-
10 abilities of the Travel Service in respect to any con-

11 tract, agreement, loan, account, or other obligation:
12 Provided, That, such transfer shall not limit or extend

13 any period of limitation otherwise applicable to such
14 contract, agreement, loan, account, or obligation; and
15 (3) any unexpended balances of funds appropriated
16 or otherwise accruing to the Travel Service for ex-

17 penditure by the Corporation for the payments of any
18 expenses lawfully incurred by the Travel Service.

19 (b) One hundred and eighty-one days after the incorpo-
20 ration of the United States Travel and Tourism Development

21 Corporation pursuant to this title, the International Travel

22 Act of 1961 (22 U.S.C. 2121 through 2127) and the Act of

23 July 19, 1940 (relating to the encouragement of travel) (16

24 U.S.C. 18 through 18d) are repealed and the United States

25 Travel Service is abolished.





UNIVERSITY OF FLORIDA


3 1262 09119 4018