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Klobuchar Puts Spotlight on "Tourism in Troubled Times"

Chairs Senate Hearing on Challenges & Opportunities for Tourist Industry, Calls on Congress to pass the Travel Promotion Act

May 13, 2009

Washington, D.C. – Highlighting the vital importance of tourism to Minnesota’s economy, U.S. Senator Amy Klobuchar chaired a Senate Commerce Committee hearing today to examine the challenges and opportunities facing the travel and tourism industry in the midst of the current economic downturn.  Klobuchar called on Congress to pass the Travel Promotion Act.  Video of the hearing is available here. 

Klobuchar is chair of the Senate Subcommittee on Competitiveness, Innovation and Export Promotion.

“From the business hotels in the Twin Cities to the lodges on the North Shore, from the scenic Root River bike trail in southeastern Minnesota to the hundreds of fishing resorts on our lakes, Minnesota has an abundance of travel and vacation opportunities,” said Klobuchar.

She noted that tourism is the fifth largest industry in Minnesota, generating $11 billion in sales and providing nearly 11 percent of the state’s total private sector employment.

Nationally, the travel and tourism industry has suffered in the current economy.  In 2008, nearly 200,000 travel-related jobs were lost nationally, and the U.S. Commerce Department forecasts that another 247,000 jobs will be lost in 2009.

“When a family decides to forgo a vacation or a business cancels a meeting, there are ripple effects across the economy,” said Klobuchar.  “Fewer airline tickets are sold, fewer cars are rented, hotels and resorts fill fewer rooms, tourist attractions see fewer visitors, local businesses suffer a decline in sales and workers lose their jobs.”

Despite these challenges, Klobuchar said there are opportunities to help the travel and tourism industry.  She proposes that more should be done to:

• Promote the United States as a destination for international travelers by passing the Travel Promotion Act, which will enact a five-year campaign to attract overseas visitors.
• Highlight travel bargains and options for more affordable, close-to-home vacations; and
• Encourage companies to resume business travel, including meetings for employees and customers.

“In the current economy, many families are rethinking their vacation plans,” said Klobuchar.  “While a major vacation may not be possible for some people, they still have the option of taking shorter, closer, more affordable getaways.  For most Americans, it’s a matter of choosing the right vacation at the right price – and getting the best deal possible.”
 
Witnesses at today’s hearing included:

-          Jay Rasulo, Chairman, Walt Disney Parks and Resort
-          Jay Witzel, President and CEO, Carlson Hotels
-          Sam Gilliland, Chairman and CEO, Travelocity/Sabre
-          Rossi Ralenkotter, President and CEO, Las Vegas Convention and Visitors Authority
-          Mary Saunders, Acting Assistant Secretary, Department of Commerce
-          Chad Prosser, Director, South Carolina Department of Parks, Recreation & Tourism
-          Judy Zehnder Keller, Owner of the Bavarian Inn Lodge, Frankenmuth, Michigan               

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