AGA’s Freeman warns against proposed cuts to tourism marketing program

May 26, 2017 11:31 AM
  • Aaron Stanley
May 26, 2017 11:31 AM
  • Aaron Stanley

A provision in President Donald Trump’s new budget proposal to cut a key travel promotion body could deter foreign tourists from coming to the United States and potentially harm casinos and other leisure industries, warned Geoff Freeman, CEO of the American Gaming Association, on Thursday.

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Trump’s proposed budget would defund Brand USA, a public-private partnership launched in 2011 to help promote the U.S. overseas as a travel destination. Those funds would be diverted to help pay for an expanded customs and border patrol presence.

Freeman warned that the proposed cuts, combined with the ongoing firestorm surrounding the proposed restrictions on incoming travel from select high-risk nations, are sending a message that foreigners are not welcome in the U.S.

“If there’s one thing I’ve seen so far that has me concerned, it’s our message to foreign travelers. These visitors are so critical – not just to Las Vegas, but to every market in which [casinos] do business,” he said.

“They have options; they have alternative places to go,” he continued, emphasizing that there is a competitive global market for luring long-haul travelers and that there exists a compelling need for a national marketing agency that can make an effective ask.

“We need to have a system that is both inviting and welcoming for bringing travelers. If we’re not going to ask them for their business, they’re not going to come. That’s where Brand USA comes in,” he said. “If you don’t want to make the invitation, I can assure you that there are other markets around the world spending hundreds of millions of dollars to recruit travelers.”

International travelers stayed an average of 18 nights and spent an average of $4,360 per capita, according to the U.S. Travel Association, where Freeman served as an executive before joining the AGA.

Overall, U.S. travel exports totaled $246 billion in 2016, while imports (travel spending by U.S. citizens while outside the country) were $159 billion – resulting in a surplus of $87 billion.

Brand USA is funded by a combination of private contributions and fees paid by applicants seeking visas to travel to the U.S. Trump’s budget would divert those visa fees to the U.S. Customs and Border Patrol.

The group claims that its marketing initiative brought in 4.3 million visitors over the last four years who accounted for $13.6 billion in travel spend.

While Congress actually passing a budget has become a rare event in recent years, and the Trump budget is likely dead upon arrival in the House of Representatives, Freeman insisted that the provision must not be overlooked.

“Everything that’s in that budget you have to take seriously,” he said. “I know there’s strong support for Brand USA in Congress, but the fact that the threat is out there. You certainly can’t rest on your heels and hope it goes away. The industry needs to be activated on this.”