S. 3220: Vital Investment in Sustaining International Tourism to the USA Act

This bill, titled the "Vital Investment in Sustaining International Tourism to the USA Act" or "VISIT USA Act," proposes the following actions:

Purpose of the Bill

The main goal of the bill is to enhance international tourism in the United States by providing financial support to Brand USA, which is an organization dedicated to promoting the U.S. as a travel destination.

Funding Transfer

The bill authorizes the transfer of $160 million from the Travel Promotion Fund to Brand USA. This fund collects fees from international travelers who are applying for a visa waiver, and these funds are intended to promote tourism to the U.S.

Timeline for Action

Once the bill is enacted, the transfer of funds must occur within 30 days. The Secretary of the Treasury is responsible for executing this transfer.

Exemption from Limitations

The transfer amount specified in the bill is exempt from some existing limitations that may apply under the Travel Promotion Act of 2009, which means this funding is a special allocation that does not count against the normal maximum amounts available.

Conditions of Use

Even though the bill exempts the transfer from certain limits, it still maintains some requirements from the Travel Promotion Act, such as matching requirements where Brand USA must secure additional funding from other sources.

Impact on International Tourism

The bill aims to support activities that enhance tourism to the U.S., potentially increasing the number of international visitors and benefiting the economy through tourism-related spending.

State of the Travel Promotion Fund

The Travel Promotion Fund, from which the $160 million will be drawn, consists of unobligated balances, meaning these funds are not currently allocated for other purposes and can be used to promote tourism effectively.

Expected Benefits

The funding is intended to boost Brand USA's marketing efforts, aiming to attract more international tourists, which can contribute significantly to local economies, job creation, and the overall travel sector.

Relevant Companies

• EXPE (Expedia Group, Inc.): As a leading online travel agency, Expedia could see increased business from heightened tourism resulting from the promotional efforts of Brand USA.
• MA (Mastercard Incorporated): More international tourists may lead to increased transaction volumes on credit and debit cards, benefiting Mastercard.
• AAL (American Airlines Group Inc.): An uptick in international travel could positively impact airline revenues, including American Airlines.
• HLT (Hilton Worldwide Holdings Inc.): More visitors to the U.S. could increase occupancy rates in hotels, benefiting Hilton.
• CXR (Carnival Corporation & plc): Increased tourism might lead to greater cruise bookings from and around U.S. ports, impacting Carnival's business positively.