H.R. 7454: USMCA Travel and Tourism Resiliency Act

This bill, known as the USMCA Travel and Tourism Resiliency Act, aims to enhance cooperation and discussions regarding the travel and tourism industry within the framework of the United States-Mexico-Canada Agreement (USMCA). Here’s a breakdown of what the bill proposes:

Establishment of a Working Group

The bill directs the United States Trade Representative to establish a Travel and Tourism Trade Working Group during the next joint review of the USMCA. The Working Group will be co-chaired by representatives from the U.S., Canada, and Mexico, involving officials responsible for travel and tourism issues.

Purpose of the Working Group

The Working Group is intended to:

• Discuss and address current and emerging issues affecting travel and tourism across North America.
• Enhance the international competitiveness of the travel and tourism industry.
• Work towards increasing exports of travel and tourism services from North America.
• Create employment opportunities and promote economic growth through tourism.
• Foster collaboration between the U.S., Canada, and Mexico on travel and tourism policies.

Meetings and Reporting

The Working Group is required to meet at least once a year. Additionally, U.S. government representatives in the Working Group must regularly update Congress on the group's activities, particularly to the relevant committees overseeing finance and commerce.

Importance of Travel and Tourism

The bill recognizes the significant impact of the travel and tourism sector on the U.S. economy, noting that it is a vital industry contributing approximately $1.3 trillion and supporting about 15 million jobs. It highlights the importance of Canada and Mexico as key partners in the U.S. travel and tourism economy, with Canada being the top source of international visitors to the U.S.

Overall Goals

The overall goal of the legislation is to secure and improve the travel experience between the U.S. and its neighboring countries, while promoting growth in the tourism industry, which is considered integral to economic stability and job creation.

Relevant Companies

• LYFT - As a ride-sharing service, Lyft may see increased demand from tourism growth. Improved travel conditions could lead to more users in tourist-heavy areas.
• EXPE - Expedia Group operates as an online travel agency, likely benefiting from increased tourism between the U.S., Mexico, and Canada.
• UAL - United Airlines may experience direct benefits from a surge in travel activities as a result of improved trade cooperation in tourism.
• AAL - American Airlines could also see growth in travel demand leading from the provisions of this bill.