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Pow Wow: US travel tax could fund more fams

Proactive travel agents should benefit from millions of dollars worth of marketing support and fam trips once funds from a new US travel levy are distributed.


A $10 charge is expected to be introduced this autumn for travellers to the US, with all funds going into a pot to be used for promotional activities from the end of 2011.


Decisions on how the funds are spent will be made by a 12-strong Tourism Promotion Corporation, but the chief executive of industry body US Travel believes spending should be proportionate to size of market and should be directed at promotional and educational activity.


Speaking at the International Pow Wow trade show in Orlando, Roger Dow said: “People think it’s going to be an advertising fund, but it should be a lot more focused on PR, fam trips and funding trade shows.”


Dow admitted that the per person charge was likely to be between $13 and $15 once administration charges had been added, but stressed that it was a one-off charge that would cover two years of travel to the US.


And he encouraged agents to work to implement the new system as they were likely to see the benefits in the long run.


“If I’m a travel agent I would be thinking I’ve got to work through a little hassle to educate my clients and then I’m going to benefit directly and indirectly from millions of dollars of improved marketing,” he said.


Dow said he hoped the corporation would work with the Visit USA Association in the UK to work out how best to spend any marketing funds, a comment echoed by Visit USA chair Kate Burgess-Craddy.


She said: “We are keen for the board to listen to the experts to ensure any money is spent on relevant activity.”


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