Leveraging President Obama’s Executive Order for Improved Tourism in the United States

Tzung-Lian Tzeng, Political Science Visiting Scholar, Duke University

Gene L. Brothers and Duarte B. Morais, PRTM, North Carolina State University

Every year, tens of millions of tourists from all over the world come and visit America. Although the United States economy began to slow significantly in 2007 due to the related financial problems such as real-estate slump and gas prices, the U.S. tourism and travel industry is still a substantial component of U.S. GDP and employment, representing 2.7% of GDP and 7.5 million jobs in 2010[i]. However, international travel to the United States accounts for a small portion of this industry (16%)[ii], and our international competitiveness has decreased from 2000 to 2010 (from 17% to 11% of total inbound travel)[iii]. President Obama’s recent executive order proposes the streamlining of non-immigrant visa applications and the processing of visit requests[iv]; factors that most tourism observers have noted as major constraints limiting America’s ability to attract international visitors[v]. Additionally, President Obama is forming a Task Force to develop a travel and competitiveness strategy. The focus of this task force is less defined; and considering the welcomed, yet top-down nature of this initiative, we would like to make a few recommendations.

Growth of international visitor numbers to the US will undoubtedly benefit multinational lodging companies, restaurants, air and ground transportation, themed attractions; as well as public areas like national parks, wildlife refuges, and heritage sites. In 2010, more than 400 million visits were made by American and international travelers to these lands, contributing nearly $50 billion in economic activity and 400,000 jobs[vi]. Each overseas visitor to the United States spent an average of $4,000 at hotels, restaurants, retail and other U.S. businesses.

In addition, Chinese and Brazilian tourists currently spend more than $6,000 and $5,000 respectively each, per trip[vii] making them very appealing markets. Improving visa processing capacity for China and Brazil is particularly important because of their higher-than-average travel expenditures. Therefore, reducing visa interview wait times and expanding the Visa Waiver Program (as proposed by President Obama) will indeed help the United States achieve its goal of becoming more competitive in the global tourism market.

However, tourism is also said to engage small businesses! And, in the words of President Obama, “small business is the backbone of America”[viii]! Therefore, any strategy to make tourism more beneficial to the US society and economy should incorporate measures to engage small tourism businesses in serving these new international visitors. These tourism micro-entrepreneurs should not only be targeted as important contributors to the international visitor experience but also should be considered as an important component in measuring the success of this shift in national policy.

An additional reason to deliberately enable tourism entrepreneurship is that small businesses will provide visitors with a more genuine encounter with Americans.  Tourism, some would argue, can be a mechanism for peace! America’s small tourism entrepreneurs might be our best ambassadors to the world - showcasing the free spirit and industriousness that defines America’s national identity.

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[i] Department of Commerce, 2011, International Visitation to the United States

[ii] Department of Commerce, 2011, International Visitation to the United States

[iii] Department of Commerce, 2011, International Visitation to the United States

[iv] President Obama, 2012, Executive Order

[v] The U.S. Travel Association, 2011, Ready for Takeoff

[vi] U.S. Department of Commerce, 2011, International Visitor Spending in the United States

[vii] U.S. Department of Commerce, 2011, International Visitation to the United States

[viii] Quotation of President Obama’s conversation in Breakout session of the White House Rural Economic Summit, August 16, 2011