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Statement to U.S. Secretary of Commerce Donald Evans -
Marilyn Carlson Nelson / September 25, 2001
September 25, 2001 

Mr. Secretary and distinguished friends and colleague from the travel and tourism industry, thank you for coming together today.  And thank you, Mr. Secretary, as well as the administration, for convening this meeting.  

In doing so, you have shown an understanding of a base industry in the American economy that is often overlooked - the travel and tourism sector, a 650 billion dollar industry to which 1 in 17 American jobs are directly linked, which generates 99 billion dollars in tax revenue, and produces a 14 billion dollar trade surplus.

Just a 10% decrease in travel and tourism will result in a loss of 1.2 million jobs in the U.S., and a GDP drop of 2%.  

A 30% decrease will result in a loss of 2.4 million jobs and a 4% decrease in GDP.  

Mr. Secretary, right now, America's economy needs a jumpstart.  The travel and tourism industry, represented here today, can deliver a powerful spark.  

To put it another way: to get America moving, we need to start moving Americans.  

We applaud the short-term fix now in place for the airline industry - but airlines are only one part of the travel and tourism picture.  

They only carry people to the hotels, restaurants, theme parks, airlines, cruise lines, car rental companies, and myriad other businesses that make up the rest of this sector.   

If we do not address the larger issues affecting them, you can be assured that airlines will be forced to return for a second round of taxpayer funding.

Together we must accomplish three objectives:

  • First, to ensure that travel is safe and secure.  
  • Second, make sure that travel is perceived as safe and secure by the public.  
  • Third, we must give the marketing arm of this industry something to fight with.  I am referring to the 300,000 travel agents in 29,000 travel agencies across America, who sell 80% of airline tickets each year.  In addition, travel agents are responsible for 98% of tour travel sales, 95% of cruise sales, and at least 30% of hotel room night sales.   
Why help this industry?

Travel and tourism is clearly the sector that has been hardest and most directly hit.  

And, no other sector of the economy can havc as broad a "recovery effect".  

The President and other national leaders have issued a call for a return to the highest possible level of "normalcy".  We must move on.  And you cannot "move on" without first moving.  

We propose that:

1)  A high-level President's Advisory Council on Travel and Tourism be formed to assist in the accomplishment of the objectives I have outlined here today.

2)  And, most importantly:  the administration should immediately consider implementing an across-the-board, 100% tax deduction on travel and related expenses for both corporations and consumers.  

American businesses and individual Americans would take that delayed trip, reschedule that canceled meeting or convention, and begin a return to a normal economic activity.

Given that households and companies are highly leveraged right now, monetary easing will do much less than expansionary fiscal policy.  
 
Mr. Secretary, most people know Carlson Companies for our travel and tourism interests.  But� we also operate a billion dollar marketing company, that is the acknowledged expert in incentive and behavior modifying sales programs.  

Because of this, we know good marketing programs, and this would be one, because it meets all the criteria:  

- it's simple and easy to understand
- it's easy to communicate
- its return is far greater than its cost

We need to reach consumer hearts, not just heads.  To spark their interest, we will have to make an emotional connection - to make them an "offer too good to refuse."
 
I know I speak for all us at this meeting when I say we're ready to do our part in getting America moving again.   Just give us the tool to do the job - a tax moratorium will give us a story to tell that is strong enough to overcome our fears.

Thank you.

 
###
Contact:
Carlson Companies
 http://www.carlson.com

 
Also See How to Turn Lookers into Bookers - Recommendation Engines in Travel and Hospitality / Max Starkov / Aug 2001 
HSMAI Attempts to Answer the Question Confronting Every Hospitality Business: How in a World Without Walls, Can You Effectively Market, Develop and Compete? / April 2001 

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