Just as US tourism is taking a hit, a US Senate committee has proposed slashing Brand USA’s budget from USD100 million to USD20 million.
Before the cuts were floated, The World Travel & Tourism Council found the US visitor economy was set to lose a ‘staggering’ USD12.5 billion in spending this year. The council’s boss Julia Simpson said the world’s biggest travel and tourism economy is heading in the wrong direction, not because of a lack of demand, but because of a failure to act. “While other nations are rolling out the welcome mat, the US government is putting up the ‘closed’ sign.” The US Senate Committee on Commerce, Science & Transportation, chaired by Republican senator Ted Cruz proposes that Brand USA funds channelled from ESTA fees be slashed. Over 10 years that will save $150m. Travel industry groups are aghast at the visitor promotion proposal with US media reporting them as fearing for Brand USA’s ability to promote the country ahead of the 2026 World Cup, America250 and the 2028 Olympics.
. . . Brand USA’s Wins
For last year alone Brand USA calculates its marketing efforts generated an extra USD6 billion in incremental spend, USD13b in total economic impact and sustained 80,000 extra jobs. The WTTC forecasts international visitor spending to the US is projected to fall to just under USD169b a 22.5% decline compared to the previous peak. According to the US Department of Commerce data for Mar 2025, inbound travel was down from Britain by 15%, Germany 28% and Canada 20%. Stats NZ figures for Apr show a 9% dip in the number of New Zealand residents arriving back from the US, compared to Apr 2024.
