SHOWCASE EUROPE TRAVEL & TOURISM SECTOR STRATEGIC PLAN FOR FY 2007
1. MARKET OVERVIEW
The U.S. travel and tourism sector is one of the most vital and far reaching segments of the U.S. economy. In 2005, some 50 million international visitors spent well over $93.3 billion while visiting and traveling in the United States. The sector supported more than 7.3 million jobs in America, with a direct payroll of $163 billion. The sector generated roughly $645 billion in travel related revenues and contributed a trade surplus of over $4 billion to the U.S. balance of payments. In addition, the U.S. travel and tourism sector contributed approximately $99.4 billion in tax revenues to federal, state and local governments in virtually every corner of United States.
With 10.3 million visitors, a six percent increase from 2004’s 9.7 million, Europe accounted for more than 20 percent of the total number of international visitors to the United States in 2005. European visitors also increased their spending in the U.S. economy by seven percent, from $25.5 billion in 2004 to $27.2 billon in 2005. They accounted for 29 percent of total expenditures made by international visitors.
Many major European markets, including France, Italy, Spain, Ireland, Sweden, Denmark and Finland, reported double-digit growth for inbound travel to the United States in 2005. While still the number one market for overseas arrivals to the United States, with 4.3 million visitors and 42 percent of total European visitors, the United Kingdom lagged behind other major European markets with only a one percent increase in visitors to the United States.
The United States offers most European travelers tremendous value due to the strength of the euro and the pound against the U.S. dollar, as well as elatively easy entry under the “visa waiver program,” which applies to many EU member states. However, tighter security regimes imposed on international travel in general and misperceptions about the America’s disposition towards international visitors and students have had a negative impact on market growth. In fact, the number of international visitors to the United States remains below levels registered prior to the terrorist attacks of September 11, 2001 and the U.S. share of the global travel market has also declined in recent years.
The Showcase Europe Travel and Tourism Team has been working diligently with its public and private sector partners in the United States and in the host countries to overcome the negative factors that slow U.S. market growth in an industry that is expanding globally. The team applauded the launch of the U.S. “Open Doors Secure Borders in the Information Age” initiative, launched in January 2006, to balance the nation’s travel and visitors’ needs and security concerns.
The Showcase Europe Travel and Tourism Team has also undertaken active outreach efforts to keep European travelers and the travel trade informed about the US-VISIT program which requires all visitors entering the U.S. to possess either a biometric or machine-readable passport as of October 26, 2006. The fact that most European governments now have technology in place to comply with the new passport requirements will significantly reduce much of the uncertainty and confusion that has affected travel planning to the United States over the past several years.
The U.S. Department of Commerce’s two federally funded promotional campaigns in the United Kingdom helped to produce positive results for the U.S. travel industry, according to findings released by the Office of Travel and Tourism. Over two million additional visits were expected as a result of the first “You’ve Seen The Films, Now Visit The Set” promotional campaign that ran in the UK from December 2004 through February 2005. The results of the second campaign, December 2005 through February 2006, have yet to be released.
Under new leadership, the Travel Industry Association of America (TIA) has developed a strategy designed to galvanize the U.S. travel and tourism industry into a single voice working together and aggressively to market the United States as a travel destination, with increased U.S. government financial support and professional U.S. Commercial Service assistance around the world. Therefore, our 2007 Showcase Europe Travel and Tourism Strategic Plan is designed to strengthen our cooperation with TIA and other trade associations as well as to capitalize on our reputation and the industry’s confidence in our team’s ability to make significant contributions in promoting this important service industry.
Our SCE Team is committed to help the U.S. travel and tourism industry raise it’s profile in Europe among travelers, travel agents, tour operators and the travel media; and to promote the United States as a welcoming, open, and safe long-haul destination that offers visitors the best value and the widest array of products and services in the world. Our 2007 plan places a strong emphasis on promoting core programs, increasing utilization of CS user fee services and generating trust funds that can be used to support increased promotional activities and team member participation in Tier-One events. In addition the SCE Travel and Tourism Team will reinforce its efforts to utilize our embassy country teams to advance industry goals and objectives; strengthen our strategic alliances with USG, State and local government agencies; and increase our offering of cost-effective market access vehicles to diverse and expanded range of U.S. clients.
Download the full Travel & Tourism Strategic Plan FY07 (48KB)