Travel Industry Association of
American Press Release
Date: July 9, 1997
Contact: Mike Pina (202) 408-2137
TIA Opposes Airline Tax Hike
WASHINGTON - William S. Norman, president and CEO of the Travel Industry Association of
America (TIA) in a letter to Congressman Bill Archer (R-TX), chair of the House Ways and
Means Committee, and Senator William Roth (R-DE), vice chair of the Senate Joint Committee
on Taxation, expressed serious concern over proposed new international passenger taxes
passed separately by the U.S. House and Senate that would dramatically increase the cost
of visiting the United States.
"International travelers to the U.S. are already
paying a $6 international departure tax, a $6 immigration user fee, a $6.50 customs user
fee, a $1.45 agriculture fee plus as much as $12 per ticket in airport passenger facility
charges. This does not include the 10% ticket tax they would pay for domestic flights they
take within the U.S.," said Norman.
"How much more are these travelers supposed to pay just for the privilege of visiting
the U.S.? The 46 million international travelers who visited this country in 1996, spent
$84 billion here, including $8 billion in taxes, and supported more than one million
American jobs while producing a $21.1 billion positive balance of trade. They are a
tremendous asset to our economy, not cash cows to be squeezed each time the government
needs money."
Norman also pointed out that the new, or increased, passenger taxes will have a negative
impact on visits to the United States through international tour operators. He noted that
many local, regional and national jurisdictions like the European Union bar
tour operators from changing the prices of their tours after they have distributed their
promotional literature. Many international tour operators are already selling tours to the
U.S. for this fall and winter and some are already selling for the summer of 1998.
Many will likely divert their customers to other more competitive world destinations
rather than sell USA tours at a loss, he predicted. Norman also noted a recently
established government agency precedent for recognition of economic realities where
the National Park Service increased entrance fees this year but gave tour operators one
year's notice so they would not have to absorb the additional costs in their already slim
margins.
Legislation passed by the House (H.R. 2014) would increase the International departure fee
from $6 to $15.50 while creating a new $15.50 international arrival fee. A Senate bill (S.
949) includes a $8 departure fee, and an $8 arrival fee and, for the first time, applies
the 10% domestic ticket tax to the U.S. domestic portion of any international flight.
TIA is the national, non-profit organization representing
all components of the $541 billion travel industry. TIA's mission is to represent the
whole of the U.S. travel industry to promote and facilitate increased travel to and within
the United States.
Travel Industry Association of America
1100 New York Avenue, NW, Suite 450, Washington, DC 20005-3934
202-408-8422, Fax 202-408-1255
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