Brian Maggiotto: Vermont’s post-pandemic tourism business gets a big boost

This commentary is by Brian Maggiotto, owner and operator of The Inn at Manchester. 

In the competitive world of international travel, the United States has a well-earned reputation as one of the most desirable destinations for travelers from all over the world.

However, the Covid-19 pandemic severely limited global travel, impacting the small businesses and workers that depend on international guests. Fortunately, Congress has come together to provide much-needed support to this vital sector by passing the Restoring Brand USA Act.

Tourism is part of the lifeblood of Vermont’s economy. After two long years of necessary pandemic restrictions, every sector of our tourism industry is eager to accelerate the return of visitors back to our state and community. That especially includes travelers from other countries.

Given the challenges, international travel has been slow to recover in Vermont, including from key inbound markets like Canada and the United Kingdom. That’s why we are so grateful to Congressman Peter Welch for his leadership to pass the Restoring Brand USA Act, which is vital to jumpstarting international travel to Vermont.

Brand USA is a public-private partnership that supports American jobs and economic activity by promoting international travel to the United States, all at no cost to U.S. taxpayers.

As the days get warmer and longer, local businesses will benefit from Brand USA’s efforts to entice tourists back to our state in the months ahead. With help from this valuable program, we look forward to welcoming visitors back to our great state.

The passage of the Restoring Brand USA Act as part of a larger funding package shows that Congress understands the essential role international inbound travel plays in boosting our economy.

Prior to the pandemic, international travel was our nation’s top services export and the second-largest industry export overall — generating $239 billion in total travel exports and supporting nearly 1.2 million American jobs.

Unfortunately, the pandemic severely diminished international visitation. While domestic leisure travel is returning to pre-pandemic levels, international travel spending in the U.S. is still approximately 78 percent below 2019 levels. Economic forecasts predict that international travel spending will not recover until 2024 without this significant federal support.

The reduction in international travel to the U.S. has also impacted Brand USA’s funding source. Half of its budget is generated through a fee that international visitors from Visa Waiver Program countries pay when applying to come to the United States.

Without visitors coming in during the pandemic, that support evaporated and without federal assistance could have remained dry for years to come. The recently passed Restoring Brand USA Act provided one-time emergency funding to restart and reinvigorate the work of bringing travelers back to Vermont.

Brand USA can help travel, hospitality and other service sectors that depend on international visitors by restarting promotional campaigns in critically important source markets and driving the demand that will revive the American travel economy. As a bonus, this support comes without taxpayer funds. The source of this one-time emergency funding is from previously collected surplus visitor fees. Those fees provide an excellent return on investment.

Since its founding in 2009, Brand USA has helped to bring more than 7.5 million international visitors to our shores, with a total economic impact of $55 billion. That spending supports over 52,000 American jobs that can’t be automated or outsourced. For every dollar spent through Brand USA, the return on investment is 25 to 1. This valuable program is a shining example of how we can help reinvigorate industries affected by the pandemic without incurring additional debt.