From 2001 through 2010, the United States' share of long-haul global travelers fell from 17 percent to 12 percent, according to the Washington, D.C.-based U.S. Travel Association. The loss of 78 million potential visitors is not only shocking but far-reaching. "The failure of the United States to simply keep pace with the growth in international long-haul travel cost our economy an estimated $509 billion in total spending and 441,000 American jobs that could have been created or sustained during that time," says U.S. Travel president and CEO Roger Dow. In addition, he notes, the country forfeited about $32 billion in direct tax receipts.
Even more distressing: The downturn occurred at a time when there was a huge upswing in the number -- 46 million -- of worldwide travelers, and the relatively weak U.S. dollar made America a travel bargain.
Industry leaders have no difficulty pinpointing reasons for this "lost decade." They cite the stringent visa policies put into place after 9/11, which greatly increased applicant scrutiny and, ultimately, wait times to up to 150 days; curtailed the country's visa-waiver agreements with other nations; and fueled perceptions of nightmare lines at airports and gruff treatment by customs, TSA and airport workers.
The good news: Over the past two years, U.S. Travel and the federal government have focused on affecting a sea change in these agencies and crippling policies to recapture, and even surpass, America's traditional share of these lucrative international visitors, including business travelers and meeting attendees. "If we want to increase our international visitors by 5 percent a year through 2021, a goal laid out by President Obama, we have to continue to improve the experience," stresses Dow.
Following is an update on the key concerns for incoming travelers, and what is being done to ease their path.
Speeding Up the Visa Process Visa hassles are the most pressing problem planners and industry leaders cite for losses of international visitors. According to a study by the Dallas-based Center for Exhibition Industry Research, visa issues precluded 116,000 international participants (78,400 attendees and 37,900 exhibitors) from attending U.S. exhibitions in 2010 alone. According to Roger Dow, energy giant Shell stopped holding global senior management meetings in the U.S. altogether because the company's brief lead times often prevented executives from getting visas in a timely fashion.
The dollar loss is particularly significant, as participants from afar tend to spend liberally. Data from a 2011 Oxford Economics research study found that international buyers and attendees spend an average of $13,600 each in the U.S., and spending by international exhibitors averages $36,100.
"There must be more effective ways to ensure that global buyers and sellers have more convenient opportunities to participate in U.S.-based exhibitions," says David DuBois, CMP, who took the reins as president and CEO of the Dallas-based International Association of Exhibitions and Events last month.
In fact, progress is being made. While wait times for visas for citizens from some countries have been as high as six months, the time it takes to process the documents has been greatly reduced in the past two years, due to changes enacted by the U.S. State Department, which include, according to Dow, "an increase in embassy and consulate hours, more personnel to devote to applications and even more locations where people can apply for visas."
Per a progress report released by the White House this past September, 88 percent of applicants worldwide now are interviewed within three weeks of submitting their paperwork. And in key markets like China, interview wait times (which take place after initial applications are processed) are being kept down to an average of five days, even though visa demand in China has increased by 37 percent this year over 2011.
Meanwhile, a pilot program that allows consular officers to waive in-person interviews for certain nonimmigrant visa-renewal applicants is now in operation in 52 processing posts in 28 countries. As a result, interviews have been waived for more than 120,000 low-risk visa applicants, including meeting attendees and exhibitors.
Another priority for the White House, the State Department and the travel industry is expanding the official Visa Waiver Program, which now enables nationals of 37 participating countries (Click below to see full chart) to travel to the United States for tourism or business for stays of up to 90 days without obtaining a visa.
The most recent country admitted to the program is Taiwan, effective this month. According to projections by U.S. Travel, the waived visa requirements will result in an estimated 346,000 Taiwanese travelers to the U.S. in 2013, up by 55,500 over 2011 figures, and they will spend some $1.3 billion while here, an increase of $213 million over 2011.
Brazil is next up to be considered for the loosened requirements. Gary Shapiro, president and CEO of the Arlington, Va.-based Consumer Electronic Association, which owns and produces the Consumer Electronics Show, is among those who have lobbied the Obama administration on the benefits of adding the South American nation to the visa-free ranks. CES, the largest annual international technology show, typically attracts 150,000 participants from 150 countries.
"At the 2012 International CES, exhibitors benefitted from business discussions with more than 800 Brazilian executives who traveled to Las Vegas, despite having to wait an average 100 days to schedule an interview and obtain a U.S. travel visa," notes Shapiro. "Imagine how many more Brazilian business leaders would come to trade events in America if these restrictions were removed."