News continues to break quickly regarding a legislative proposal that would keep federal employees from attending association and other non-governmental meetings and conferences, and we need your help to ensure our views are taken into account on Capitol Hill.

Since we delivered a sign-on letter to Congress last week with 2,100 signatures, the Obama administration has responded with a directive to federal agencies to cut their travel budgets for fiscal year 2013 by 30 percent and cap spending on government-sponsored conferences at $500,000. These new restrictions apply only to government travel and conference spending, and do not have the broader implications for association and other private sector meetings that were evident in the amendments cleared by the House and Senate just prior to the last Congressional recess.

However, it’s clear that many legislators on Capitol Hill feel the administration’s guidance to federal agencies does not go far enough to curb wasteful and inefficient spending. For this reason, we remain concerned that Congress will insert language into another legislative vehicle that includes broader restrictions on non-governmental meetings and conferences where government employees can learn about challenges facing the private sector and maintain a dialogue with the businesses and industries regulated by the government.

To protect this dialogue and prevent any unintended consequences for association and other non-governmental conferences, use our web template to send a personalized message to your members of Congress asking them to support the following specific changes to the amendments that passed the House and Senate.

1. Change the definition of a conference to apply only to government-sponsored meetings as intended, and not include meetings and conferences held by associations and other private sector organizations.

2. Strike the provision in the amendment that restricts agencies from attending more than one conference held by a private organization per fiscal year.

We continue to make progress in educating Congress about the unintentionally broad scope of these travel restrictions, but the issue remains very fluid and unpredictable on Capitol Hill. Thank you for adding your voice to our advocacy efforts.

According to tourism research firm Longwoods International, the campaign resulted in 3.2 million visitors during last summer alone. Because Zimmermann has focused much of the advertising campaign on markets outside the state of Michigan, 1.2 million of those visitors traveled to Michigan from more distant locations, which resulted in longer stays and increased visitor spending. According to Longwoods, summertime visitors to Michigan spent $1 billion in 2011 compared with $600 million the year before.

Those kinds of outstanding increases have put Zimmermann in a position to successfully attract increased governmental spending for tourism promotion. His $25 million budget still pales in comparison to that of major consumer brands (to draw a stark comparison, Zimmermann points out that Chrysler spends $1.2 billion on domestic advertising annually). But at a time when demands on government budgets make well-funded statewide tourism promotion efforts the exception rather than the rule, Michigan’s increased commitment to attracting visitors is a worthy model for other states to emulate.

Zimmermann has also deployed sports sponsorship in new and creative ways to help attract an increasing number of visitors to Michigan. A NASCAR race in Michigan has been renamed the “Pure Michigan 400” and both the home and visitor dugouts at Comerica Park feature the campaign’s logo. As Zimmermann looks for ways to gain additional exposure for the Pure Michigan brand, sports commissions and convention bureaus across the state are joining in a marketing consortium called “Pure Michigan Sports,” which is intended to promote the sports-friendly nature of communities all over the state.

In our experience of working with statewide sports marketing organizations, those that can prove their value are the ones that are best equipped to survive the inevitable shifting of political winds that occurs in state governments. In Zimmermann’s case, he points to research that shows that for every dollar the state invests, nearly $5 in tax revenue is generated for the state through visitor spending. That’s the kind of story that can position travel and tourism as a truly nonpartisan economic engine for governments at every level.

The efforts of Pure Michigan, Pure Michigan Sports and other statewide tourism and sports-marketing efforts will be discussed in depth at the TEAMS ’12 Conference & Expo, October 1–4 in Detroit. Please note that the early-bird registration discount of $100 will end on June 1. For more information or to register, please call toll-free (877) 577-3700 or visit TEAMSconference.com.

Tim Schneider
Schneider Publishing Company

I want to make you aware of a memorandum that the U.S. Office of Management and Budget (OMB) issued late this afternoon. While we are still reviewing the full details, the memo will allow federal travel to continue to take place but with added oversight and internal controls, which is consistent with a U.S. Travel proposal put forth earlier this week to strengthen oversight of government conferences. The memo also clearly recognizes the value of travel by stating that: “Travel is often necessary for Federal employees to discharge their duties effectively and the travel industry plays an important role in creating jobs and supporting local economies …”

However, U.S. Travel has some initial concerns about language in the memo, including provisions to cut travel budgets by an additional 10 percent (for a total of 30 percent when added to cuts already in place) through 2016. We will report to you with additional details of the memo after we conduct a more thorough analysis.

In the meantime, a link to information about the memo can be found here. Please review the information and report back to us with any concerns you have on how this could impact your business. Please direct any comments or concerns to Erik Hansen, Director, Domestic Policy.

We will continue to monitor this issue closely and work with the administration to mitigate any adverse impacts to travel.

Sincerely,

Roger J. Dow
President & CEO

The National Strategy is a blueprint for expanding travel to and within the U.S., laying out concrete steps to be taken in five key areas:

1. Promoting the United States

2. Enabling and Enhancing Travel & Tourism to and within the U.S.

3. Providing World-Class Customer Service and Visitor Experience

4. Coordinating across Government

5. Conducting Research and Measuring Results

Additionally, the strategy sets out a goal of increasing American jobs by attracting and welcoming 100 million international visitors annually by the end of 2021, more than a 50 percent increase over the number expected this year. These international visitors would spend an estimated $250 billion per year, creating jobs and spurring economic growth in communities across the country.

“The creation of this national strategy – under direction of President Obama and the leadership of Secretaries Bryson and Salazar – is a monumental milestone for the United States. We commend the these leaders for recognizing the many economic, social and diplomatic benefits of travel, and their renewed commitment to supporting travel and tourism – the number one services export in the United States,” said Michael D. Gehrisch, President & CEO, DMAI.

Despite an incredibly short timeframe, the staffs of both the Department of Commerce and the Department of Interior were committed to integrating recommendations from the travel industry into the strategy sent to the President. As part of that process DMAI collaborated with 30 travel organizations, including US Travel, and submitted a 19-page document

The Center for Association Leadership (ASAE) has delivered their open letter to Congress with more than 2,000 signatures attached, urging lawmakers to rework the bill that could cause potentially damaging effects to the travel industry. Here’s an update from ASAE:

ASAE sent an open letter to Congressional offices this week urging lawmakers to revise provisions that would severely restrict government employees from attending meetings and conferences held by associations, nonprofits and other private sector organizations.

More than 2,000 organizations signed on to ASAE’s letter, which was prompted by amendments attached to two different bills that passed the House and Senate in late April, just prior to a Congressional recess. The amendments were designed to curtail spending on government-sponsored conferences and enhance reporting of government travel expenses, but were written in such a way as to have broader application to private sector meetings as well.

The House added the restrictions on conference spending to the Digital Accountability and Transparency Act, known as the DATA Act, that passed by voice vote April 25. That same day, the Senate attached identical language to the postal reform bill that it cleared 62-37, also by voice vote.

ASAE, while supportive of government accountability and transparency, is concerned about the chilling effect the provisions would have on government participation in association meetings and other types of educational conferences. ASAE’s letter asks Congress to revise the definition of conferences covered by the amendment, and correct another provision that limits agencies from expending funds to attend more than one conference held by an outside organization per fiscal year.

Since the issue first arose, ASAE, the U.S. Travel Association and other associations have been meeting with key offices on Capitol Hill to explain how the provisions would impact non-governmental meetings and hinder the necessary interchange between government and the private sector. While many of these meetings have been encouraging, ASAE is urging organizations that are concerned about this issue to send personalized messages to their elected offices asking them to take action to keep these provisions from taking effect. ASAE has created an easy web template for associations to use to communicate with Capitol Hill on this issue.

2. WAYS AND MEANS SUBCOMMITTEE TO EXAMINE TAX-EXEMPTS: House Ways and Means Subcommittee on Oversight Chairman Charles Boustany (R-LA) has scheduled a May 16 hearing to examine the operations and existing oversight of tax-exempt organizations.

This will be the first in a series of hearings by the subcommittee on the tax-exempt sector and IRS oversight of tax-exempt activities. Last fall, Boustany sent a letter to the IRS seeking information about the tax-exempt sector related to governance, the process for applying for tax-exempt status, and compliance. While that letter partly focused on issues related to colleges and universities and nonprofit hospitals, next week’s hearing is expected to be broader in scope.

Boustany did not announce the names of any witnesses who will be invited to speak at the hearing, but said the subcommittee will ask members of the tax-exempt community to provide a more complete picture of the sector and its activities.

“This review allows us to examine the state of the tax-exempt sector, as it currently exists today, and consider this information as we continue the committee’s efforts toward comprehensive tax reform,” Boustany said this week. “In both cases the goal is the same – to ensure that the tax-exempt sector is operating in an efficient manner and that the laws governing tax-exempt organizations are being applied fairly and evenly.”

Organizations wishing to submit comments for the record can do so through the committee’s website.

Given Missouri’s past success with its co-op marketing efforts, we can expect to see destinations match much of the state allocation, doubling the impact of the state dollars devoted to tourism promotion.

For more information, visiti the Missouri Hotel & Lodging Association website at http://www.lodgingmissouri.com

The Administration’s action recognizes travel and tourism as making a critical contribution to our economy and provides us with an opportunity to establish travel and tourism as fundamental to America’s prosperity. Since the job recovery began, our industry has created more than 260,000 new jobs, far outpacing job growth in the rest of the economy. A study released last year by the McKinsey Global Institute projects the leisure and hospitality sector could add between 2.1 million and 3.3 million new jobs in this decade.

The strategy outlined today by U.S. Secretary of Commerce John Bryson and Secretary of the Interior Ken Salazar, who co-chaired a intra-agency task force to develop the plan, commits our government to address numerous issues that can help improve travel to and within the United States and increase American jobs in the process.

National Strategy Highlights

The National Travel and Tourism Strategy broadly includes:

—Expanding the government’s promotional efforts to market the United States as a destination: This will include greater visibility of travel and tourism by senior officials, using technology and data resources more effectively, and coordinating with Brand USA to promote international travel to the U.S.

The strategy sets a goal of increasing American jobs by attracting and welcoming 100 million international visitors annually by the end of 2021, more than a 50 percent increase over the number expected this year.

—Enabling and enhancing greater facilitation of travel to and within the U.S.: This includes taking action to expand the Visa Waiver Program, improving visa processing, expanding the trusted traveler program and improving screening processes at airports, and using grants to improve transportation infrastructure.

Significance of the National Strategy

The Administration is embracing the power of travel and the strategy suggests a newfound appreciation for several key points:

—Every 33 overseas visitors to the United States support one American job that cannot be outsourced.

—We need to re-establish the United States as the world’s top travel destination. Our country owns just 12 percent of the global travel market — down from 17 percent a decade ago.

—The travel experience is littered with hassles that can be eliminated. Improving the air travel experience, for example, can add $85 billion in air traveler spending, which will support 900,000 jobs.

—Making it easier for people to attend business meetings, tradeshows and conventions boosts our economy by $263 billion annually and supports 1.7 million American jobs.

—The travel industry provides jobs for 14.4 million Americans and generates $124 billion in tax revenues nationally and for states and local communities. Travel can drive the economic recovery and put millions of Americans back to work.

Looking Ahead

The President and the Administration deserve thanks for taking an enormously important step forward for our industry during this 29th annual National Travel and Tourism Week.

We are pleased to see that the national strategy has an expanded role for travel and tourism within the federal government. These actions and others will improve our industry’s ability to engage effectively with government leaders.

But what matters most is not what’s spelled out in this document, it’s what industry and government will do together to put the strategy into action.

The industry will continue to do its part and work hard to restore the United States to its proper position as the world’s number one travel destination.

Just like the taxpayer, the travel industry depends on adequate oversight and ethical standards for all federal travel – because this is the only way that legitimate and productive travel can continue to take place.

Industry Proposal to Strengthen Oversight

To ensure that conferences remain an effective tool of the federal government that provides value to the taxpayer, U.S. Travel recommends that Congress:

—Extend and enhance oversight provisions enacted in FY2012 by requiring federal agencies to report all conference-related expenditures and conference contracting procedures to its Inspector General at the end of each fiscal year; and

—Ensure that agencies select conference locations based solely on cost-effectiveness by permanently eliminating the “blacklisting” of American cities for government conferences and meetings.

What to Expect from Congress This Week

This week Congress will consider several appropriations bills containing proposals to increase oversight of government conferences and curb travel spending. The House is considering the FY13 Commerce, Justice and Science appropriations bill, which contains similar language to the U.S. travel proposal to increase oversight. Meanwhile, the Senate Homeland Security Appropriations Subcommittee will markup its FY13 spending bill that requires the Department of Homeland Security(DHS) report its conference spending to the DHS Inspector General every three months.

Additionally, the House and Senate continue work on the Postal Reform bill and the DATA Act, which contain concerning proposals by Senator Tom Coburn (R-OK) to severely limit government conferences. No further action is scheduled for either bill at this time but we must do everything we can to fight this proposal.

Next Steps

U.S. Travel is meeting with lawmakers on Capitol Hill to advocate for our proposal to increase oversight and preserve government conferences, while dissuading Members of Congress from supporting other measures that could have unintended consequences for our industry. Additionally, we are continuing to focus resources on informing lawmakers on the value of meetings, events and conferences.

The Center for Association Leadership (ASAE) garnered more than 2,000 signatures for its open letter to Congress, which was sent last week. However, ASAE and the U.S. Travel Association are still working toward pushing Congress to revise the language in a recently passed bill that would place several damaging restrictions on the meetings industry, and are again asking for your help educating lawmakers about the potential fallout of their actions:

Thank you to everyone who signed our 2,000+ signature letter to Capitol Hill and who have actively shared their stories and examples on the harm the provisions restricting federal meeting attendance would have on their organization. However, we still need your help to make a difference on this issue.

Since we sent the letter to Capitol Hill, ASAE, the U.S. Travel Association, and other associations have been visiting key Congressional offices to explain what the provisions mean and how it harms our meetings and conferences. Many offices understand our explanations, but misunderstood what the provisions said when the amendment passed very quickly prior to the Congressional recess. We are concerned that Congress could act and pass these provisions without understanding the implications, and so we need to conduct a major educational effort on what the provisions mean and why they need to be amended.

Here is how you can help:

1. Using our template, send a personalized message to your members of Congress educating them on the provisions and what it would mean to your association.

2. If your organization works with members of the Senate Homeland Security & Governmental Affairs Committee AND/OR the House Oversight & Government Reform Committee, contact us to coordinate meeting with or contacting those offices to ensure these committees of jurisdiction understand the issue.

3. Send your stories, anecdotes, and examples of how these provisions would impact your organization to rhay@asaenet.org. ASAE will be posting these examples on its Power of A site to give members of Congress a place to visit and see the real-life implications of this policy.

4. If your organization would like to conduct Hill visits on this issue, contact us and we will help with arrangements and information.

If you have any questions, contact us at 202.626.2703 or publicpolicy@asaenet.org, and thank you for your support on this important issue.