Reigniting Growth in Travel and Tourism Opening Remarks

U.S. Chamber of Commerce
April 9, 2003

Good morning, ladies and gentlemen. Welcome to the U.S. Chamber of Commerce. I'm Tom Donohue, the Chamber's president and CEO, and I'm very pleased to have the opportunity to kick off this event.

The organizations and individuals gathered in this room represent virtually every sector of our nation's job engine - the travel and tourism industry.

I'd like to start by thanking our summit co-chair and partner, Jonathan Tisch, chairman and CEO of Loews Hotels and chairman of the Travel Business Roundtable. No single individual has done more to promote this industry.

This summit is organized by a steering committee that includes nearly a dozen national organizations that have not only helped shape our agenda but have also ensured that by working together, we can make certain that this summit is just one milestone in our efforts to support the revitalization and growth of travel and tourism.

• The Travel Industry Association of America
• The International Association of Convention and Visitors Bureaus
• The U.S. Department of Commerce
• The National Restaurant Association
• The American Hotel and Lodging Association
• The International Council of Cruise Lines
• The American Resort Development Association
• The Air Transportation Association of America

I'd also like to extend a special thanks to our corporate partners:

• American Express
• American Tours International
• The Carlson Companies
• Six Continents Hotels
• And, Universal.

So why is the Chamber of Commerce involved in something like this? It's simple, really.

Travel and tourism is an indispensable ingredient to our overall economic health. Few, if any, industries generate jobs and commerce like travel and tourism.

One out of every seven people in the U.S. private-sector workforce — or 18 million — are employed directly or indirectly in travel and tourism related jobs.

This industry contributes nearly $100 billion in tax revenue for federal, state, and local governments.

With states and localities suffering their worst budget deficits in half a century, travel and tourism-generated funds are critical for providing essential services such as health care, education, and transportation system improvements.

Finally, because international travelers spend more money in the U.S. than American travelers do abroad, the U.S. travel and tourism industry is one of very few that generates a multi-billion dollar trade surplus.

International and domestic travelers combined spend $1.5 billion a day in the U.S.

Yet the travel and tourism industry is facing unprecedented challenges, and that's why we're here today.

Fear of terrorism since 9-11, economic uncertainty, the war in Iraq, and now a mysterious respiratory disease have disrupted travel plans, which in turn have delayed a sustained and robust economic recovery.

In part because travelers have elected to stay home, U.S. airlines lost $10 billion last year and expect to lose $11 billion this year. Half of all U.S. jobs lost since the 9/11 terrorist attacks have been in aviation and travel.

When people stop flying, they also stop staying in hotels, eating in restaurants, visiting museums or theme parks, renting cars, or shopping.

The result is more job losses and further economic stagnation.

The war in Iraq looks very encouraging at the moment, but the potential for terrorism and an extended conflict remains, and this uncertainty means our travel and tourism industry will suffer even more.

According to one study, a prolonged war would cost the U.S. travel and tourism industry tens of billions of dollars and about 450,000 jobs.

So how do we strengthen the travel and tourism industry, and by extension, our economy?

Essentially, it boils down to getting America moving again. Businesses should end travel bans or restriction on their employees, and travelers should make plans and follow through with vacations.

In the wake of 9/11, many companies imposed travel restrictions or delayed sales conventions or meetings. The results were predictable. Market research by AT Kearney revealed that auto companies that sent their sales teams out to meet with dealers – took business away from those who stayed home.

Now, many of the same companies have imposed new travel restrictions, including – and this seems unbelievable to me – some in the travel and tourism industry.

To them I say: the best thing you can do for your company, for the American economy and to do your part to support our troops – is to keep selling, meeting and traveling.

Our fears of war, terrorism, and economic uncertainty, though understandable, must be overcome.

An open society and the freedom to travel without fear are basic rights we've come to expect in this country — we must not let Osama bin Laden, Saddam Hussein, or anybody else take them away.

By hunkering down and refusing to move about, we will be handing the terrorists the victory they are seeking.

Your presence here today speaks loudly and clearly — you're willing to work together to tackle these mutual challenges, and the Chamber is willing to work with you.

The challenges we face are significant. However, I'm convinced that by working together there is much we can accomplish:

We can work with government to make sure we make it easier to travel, even as we enhance security;

We can help restore confidence in travel among the American people; and

We can make sure our nation continues to make foreign visitors to the United States feel safe and well treated.
Helping to lead that effort is Jonathan Tisch, chairman and CEO of Loews Hotels and, as I mentioned earlier, chairman of the Travel Business Roundtable, a prominent coalition of chief executives representing various sectors of the travel and tourism industry. We are especially grateful to Jon and TBR not only for moving their annual meeting to coincide with this summit, but working hand-in-hand with our team to arrange this impressive line-up.

As Chairman of NYC & Company, New York City's convention and visitors bureau, Jonathan has led efforts to rebuild that city in the aftermath of September 11th.

In recognition of his leadership and civic involvement, Jonathan was named by Crain's New York Business as one of the top ten most influential business leaders.

His awards, media appearances, and community and philanthropic activities are far too numerous to name here.

Please join me in welcoming Jonathan Tisch.