Additional funding will boost trade partnerships, says Brand USA senior vice-president for public affairs Aaron Wodin-Schwartz
Brand USA was created over a decade ago to position the country competitively and inspire global travellers to visit the USA; now part of the government funding bill President Biden signed into law on 15 March, the US is making a critical investment in rebuilding the international traveller economy.
While international arrivals have demonstrated an extraordinary resilience with the reopening of US borders to the world of vaccinated travellers in November 2021, numbers remain far below 2019 levels.
The Commerce Department reports that last month non-citizen air arrivals to the United States totaled 2.159 million, which is a 236% increase over February 2021 but still down 53.7% compared to February 2019. Two-way air traffic between the United States and Europe was up a whopping 659%, with London ranking third in point-of-departure volume after Cancun and Mexico City.
By passing and signing into law the Restoring Brand USA Act as part of the 2022 appropriations bill, Congress and the Biden Administration have ensured the US travel industry has the resources to bring back the high-value international segment of the travel economy and achieve a full recovery, sooner than later.
As we shift from pandemic to endemic, Brand USA has developed a comprehensive approach to rebuild traveller confidence, stimulate demand, and welcome the world back to our shores. We will implement a series of marketing strategies that include inspiring storytelling, compelling partnership opportunities, and a deeper engagement with tour operators and travel agents.
While these campaigns are global in nature, the UK and Ireland are critical first stops on the path to the next normal. In addition to their longstanding connection with and affinity for the United States, both markets test among the readiest to resume long-haul travel. Brand USA will continue to work with the British and Irish travel trade to create innovative campaigns that tell the stories of the entirety of the USA.
From pioneering platforms like GoUSA TV and Brand USA Global Marketplace, to tour operator co-ops and fam trips, there is a rich path ahead as we collectively rebuild transatlantic connections.
The pandemic has had a devastating effect on global travel and tourism, crippling communities, businesses, and individuals that rely on international visitor spending. New data released by the US Department of Commerce reveal just how dramatic this impact was felt in the United States: Total economic output generated by travel and tourism in 2020 decreased by more than 50% year-over-year.
More stunning still is the outsized role of the sector to the overall economy – the decline in travel and tourism output accounted for more than half of the decline in US GDP (56%) and more than a third of total employment decline (34.2%) in 2020.
These data are a stark reminder of the important role the travel sector plays in the vitality of economies at the local, state, and national levels. The international segment is particularly valuable because on average international visitors spend more time and money, and visit more places, than domestic travellers.
US travel and tourism exports were $233.5 billion in 2019, accounting for 9% of all US exports and 27% of services exports and furnishing a $51 billion trade surplus. Notably, the UK has for many years been the top source market for overseas visitors to the USA, trailing only Canada and Mexico in total arrivals.
As more of the world opens back up and air routes come back online, this dedicated funding will help the United States attract its fair share of the competitive global travel market. This will translate directly into economic growth, quality jobs, and tax revenues in communities throughout the nation.
We are living through extraordinary times. All of us in the travel space must remain cognizant and respectful of events like the Russian invasion of Ukraine that will shape cross-border flows and global structures for years to come. But what hasn’t changed is the innate human desire to explore and connect across languages and boundaries. Together, we will define what the next normal looks like for our industry. We are now one giant step closer.
For more information on the importance of the funding, listen to Aaron speak on Brand USA’s Talks Travel podcast here.