8/14/2019 T5 B65 GAO Visa Docs 4 of 6 Fdr- 6-17-02 GAO Record of Meeting Re Tourism and Visa Waiver 791

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r Prepared by: Kendall SchaeferDate: 06/17/02Job Code: 320101Index: Type bundle index here

DOC Library: Type library name hereDOC Number: 150723

Record of Interview

Office of Travel andTourism Industries,Commerce DepartmentTodiscuss the importance of travel from Visa Waiver Program Countriesand the impact on travel demand if the VWP program were eliminated.In PersonContact Method

Contact Place G A O H QContact Date 06/05/02Participants Mr. Doug Baker, DeputyAssistant Secretary ofService Industries,202-482-5261, doug baker@ita.doc.govMs. Helen Marano, Director of OTTI202-482-4752/0140, helen marano@ita.doc.govMr. Ron Erdmann, Tourism Statistics202-482-4554, ron erdmann@ida.doc.gov

U.S. GAPKendall Schaefer, Economist, IAT/HQBruce Kutnick, Economist, IAT/HQ

Comments/Remarks The Office ofTravel and Tourism Industries (OTTT) is the government'snational tourism office with a current staff of 12. OTTI is responsible forrepresenting the tourism industry in the national policy arena as well as inorganizations like GATT, OECD, and WTO. They play an active role intourism expansion and are secretary of the Tourism Policy Council, aninteragency coordination mechanism for promoting tourism. They alsoprovide technical assistance to the private sector as well as othercountries and have a statistics program. Theyare partners with the statetourism offices, the convention and visitors bureaus and national tourismassociations.Their statistics programThrough their in-flight survey, OTTI collects both export and import datafor tourism services. Data is collected on the number of arrivals fromeach country and estimated expenditures of travelers (note: expendituredata is not available for all countriessince some countries do not haveenough survey respondents to be statistically significant). OTTI sends thisdata to the Bureau ofEconomic Affairs (BEA) who then input the data

Pagel Record of Interview

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Prepared by: Kendall Schaefer Index: TypeDate: 06/17/02 DOCLibrary: TypeJob Code: 320101 DOC Number:into their national accounts, balance ofpayments,and Traveland TourismSatellite Account (TTSA).The TTSA is an account that measures the economic contributionof thetourism sector in the national economy. The TTSA was one of the firstservice industry satellite accounts to be constructed by BEA and served asa pilot program. The satellite accounts are valuable in that they allow fora comparison of different service industries (i.e. comparing apples withapples) and can accommodate impact analysis (i.e. they have doneanalysis of the impact of9/11 on tourism).The first TTSA was constructed in 1998 using data from 1993. BEA hasjust finished updatingthe TTSA with data from 1997and has published2001 quarterly estimates. Theconstruction ofthese accounts, however,has been limited due to lack of funding. For instance, BEA has not beenable to do the TTSA on a state level yet. However, somestateshave triedto do a simulation of the TTSA for their own state using information fromthe World Traveland Tourism Council (i.e. South CarolinaandHawaii).Other models that estimate the economic contribution of the travelindustry include the model from the Travel Industry Association (TIA),which was developed in 1983 with assistance from OTTI and BEA(as partof their "REIMS" model). The methodology employedby BEA's TTSA isdifferent than byTIA, so BEA's estimate of the economic importanceoftourism is lower than TIA's. OTTTs approach has been to consider arange ofestimates byincluding both sources.Studies on the impact of visa requirements on tourism demand

/T)OTTI has not yet donea study to estimate empiricallythe impact ofvisarequirements on tourism demand. However,Ms.Marano said this couldbe done. In order to do this, Ms. Marano thought they should look at theirin-market commercial services and speak with travel representatives inthe private sector. She also emphasized the importance of factors suchas: 1) the cultural disposition of travelers (i.e. travelers from countrieswith violence mayfear comingto the U.S.less than travelers frompeaceful countries), 2)nature of their booking behavior (i.e. do they bookthrough agents, take package tours or travel independently), and 3) thecommunication level (i.e. how are travelers getting information about thevisa process?)OTTI has looked at the importance oftravel from VWP countries. Forexample, they have looked at utilization rates for the V WP (not all arrivalsfrom V WP countries enter under the VWP). They have been working withState somewhat on this issue as well and are serving as the Department ofCommerce's representative on the DMIA Taskforce. (Auditors note:TheImm igration and Naturalization Service Data Management Improvement Act(DMIA) of 2000 created a Task Force to evaluate how the flow of traffic atUnited States airports, seaports and land border ports of entry can be improved

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Prepared by: Kendall Schaefer Index: TypeDate: 06/17/02 DOC Library: TypeJob Code: 320101 DOC Number:while enhancing security and implementing systems for data collection and datasharing.)In OTTI's opinion, visas are a deterrent to travel. Helen said that theircommercial service officers have stated that visas are a significantimpediment to travel in the U.S.Mr.Baker emphasized that at theInternational Traveland Tourism Trade Show held in early June, theiroffice received many questions about the recent INS proposals to changeentry regulations and expressedLconcerrLabout.the; pos ibje jmjpactofTheir office has also received many inquiries. Embassies about how countries can be admitted to the VWP.For Follow-Up with Ron and HelenW e discussed the possibility of Commerce doing a study on visas. Wediscussed the timeframes for this project (as well as the possibility ofneeded information earlier for a July testimony) and the fact thatCommerce could initially provide some general estimates based on amoresimple methodologyand later update the information with moresophisticated estimates. Particulars to follow up on include:

Ron is goingto send us a table onexpendituresfrom VWPcountries and 2001 preliminary estimates. Helenis goingto check with DEI to see if they will do a studyonvisa's for OTTI as well as other sources that could provideinformation onvisas such as:o The foreign commercial service (when the V W P wasthreatened in 1994, there was a White House Conferencewhere they may have done some analysis)o John Cook- a consular officer they mentionedo Their Showcase Europe Group (a program through theforeign commercial service focused on tourism in the EU)o The U.K. Travel and Trade Barometer (a groupofU.S.travel representatives inprivate sector in U.K.) Helen and Ron are attending the Travel andTourism ResearchAssociation Annual Meetings from June 23-26 inArlington.Documents Received Impact of International Visitor Spending on State Economies, 1997

Key Facts About 2001 Inbound Tourism. 5/02 In-Flight Survey Country Sample Sizes, 2000 Description of the TTSA Export America Magazine

Other contactsBEA: Sumiya Okubo and Steve LanderfieldSouth Carolina Travel Office: Julie FlowersHawaii Travel Office: Pearl Ibushu

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