America’s new tourist tax to bring in more tourists

The United States is one of the world’s most popular travel destinations with 55 million tourists arriving on its shores last year.

But numbers are still lower than hoped for. So for the first time ever, they’ve decided to run a national tourism campaign to attract more visitors.

However, rather than paying for it with the usual taxpayer money, they’ll be charging visitors $10 every time they come in.

For some, the home of Disneyland, New York and the Grand Canyon is an irresistible holiday. In fact, America is the second most popular destination after France.

But it’s not all Goofy and hot dogs. The tourism industry in America has taken a few hits in the years following 9/11.

Tourism numbers have decreased partly due to the perceived danger of travelling to a terrorist target, and partly due to the increase in hard line airport security and screening procedures as a result of it.

Many people who would have otherwise gone to the States have decided to travel to more laid-back holiday spots instead.

Given the size of the country and its tourism industry, a drop of 2 million visitors or so from one year to the next may not seem to be too much of an issue.

But if that equates to around US$500 billion in lost revenue, as some commentators suggest, it’s no wonder the US government has decided to act.

America as a whole has never run an advertising campaign to attract foreign tourists. Instead, individual states and some cities have run their own tourism campaigns – the “I Love New York” campaign being a more popular one.

And now that even the smallest nations are out there touting their wares, America has been left resting on its laurels somewhat.

Hence the Travel Promotion Act, introduced in March this year.

This new law will levy a $10 tax on tourists coming into the States from Visa Waiver countries (citizens of 36 mostly European and Asian-Pacific countries who now have to submit their details online before entering the country).

The money will be used to fund advertising campaigns promoting the US as a holiday destination.

It’s great that the government has managed to give its tourism industry a boost without requiring the US taxpayer to pay for it. But not everyone is happy with the new charge.

EU officials have said they don’t feel the tax is necessary, and that if America continues with it they will retaliate with a tax on US tourists.

There’s also disquiet in the US itself. The International Air Transport Association has voiced concerns that the tax merely adds another layer of red tape, and the government would be better off reducing the country’s stringent customs and immigration procedures.

However, with experts predicting it could draw in an extra 1.6 million visitors a year, and billions in consumer spending, it has been welcomed by most in the American tourism industry.

The fee will be in place by September this year, so it’s yet to be seen how tourists will react. It could be said that US$10 is not a huge sum of money and nobody will notice.

But multiply that over a family of four and it could have an impact, not to mention the principle of it for some.

And it does add another item to the already long list of requirements for getting past the US border guards known for their uncompromising attitude.

The tax may not be a deal breaker and it’s small compared to the cost of a holiday. But there’s a danger it could reinforce America’s reputation as an unwelcoming destination, rather than actually serving its purpose of bringing more visitors in.

By Jo Blick

Photo – Manhattan and Central Park, New York.