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Tourism Great for Economy

Click to see original imageWithout a lot of hoopla, the travel and tourism industry makes a great economic contribution in the United States – despite a decline in our competitive position since 1976. In 1982 the industry generated 4.5 million American jobs, $133 billion in business receipts, $41 billion in payroll income, and more than $20 billion in federal, state, and local tax revenue. Those figures were quoted by Rep. James F. Florio, D-N.J., who has informed Congress of a private sector initiative to reverse the decline and improve American competitiveness for international travel and tourism business. The U. S. share of world tourism receipts dropped from 13 percent in 1976 to 10.6 percent in 1982. The trend is alarming, considering that each market-share point is worth more than $1 billion in foreign exchange earnings. lnbound international tourism constitutes the nation’s third largest source of export income. Last year alone, international visitors spent $11.3 billion, generated $640 million in federal tax revenues and supported 300,000 jobs. Florio says the drop in tourism receipts in the last several years has been paralleled by a steady decline in the federal promotion effort. The government should correct that problem by developing a long-needed international tourism marketing strategy, coordinated with the program being sponsored by private industry. Spearheading the latter’s response, the Travel Industry Association of America has accepted the role of an umbrella organization representing all sections of the travel and tourism industry. It has assembled a committee of senior international travel marketing executives to lead the national effort. Called the International Marketing Plan Development Committee, the group’s goal is to create a five-year strategy to return the U. S. to a 13-percent market share of world tourism dollars. This would create 200,000 new jobs and increase foreign exchange from inbound tourism 60 to 70 percent. The committee plans to submit its suggested blueprint to Congress and the administration by the end of the year. Those involved with the program envision economic gains, new jobs, and improvement in the balance of payments picture. Florio is chairman of the House Subcommitte on Commerce, Transportation and Tourism. If you have ideas to share, he could forward them to the right parties.