Leaders of the travel and tourism sector of the national economy will convene to share ideas and prepare recommendations to assist President-elect Barack Obama in accelerating the economy through travel and tourism. The outcomes will be presented to Obama, his transition team and key members of Congress following a Dec. 16 meeting in Washington, D.C.

A broad cross-section of travel and tourism leaders has been invited to be a part of creating workable solutions for the struggling economy. The participation of more than 20 organizations has been confirmed, including leaders representing packaged travel, lodging, travel agents, cruise lines, ground transportation, air transportation and special interest travel, according to the National Tour Association, which is managing the effort. 

 “We believe it is critical to equip President-elect Obama and his administration with the ways in which travel can fuel the U.S. economy,” said NTA President Lisa Simon, CTP. “We know that travel and tourism is a way to quickly inject new jobs, new income and new tax revenues into our national economy. We simply need a unified plan to make it happen.”

Strategic partners and leaders within the travel and tourism sector have been asked to prepare their policy and cooperative marketing ideas, share them in advance with the entire group and then attend the summit in Washington, D.C., where the plans can be prioritized and coordinated into pragmatic solutions to assist the economic recovery.

The travel and tourism sector of the national economy contributes $700 billion to the United States annually. (www.ntaonline.com)

The Travel Industry Association released its annual travel forecast, which said that while the travel industry will continue to face challenges through 2009 and in some segments through 2010, leisure travel will sustain the industry while business travel retrenches. However, the search for value is greater than ever, and travelers will cut back -shortening trips, downscaling the level of hotels they choose and perhaps switch to lower-cost destinations.

Leisure travel remains more resilient than business travel, said Dr. Suzanne Cook, senior vice president of research for the TIA. “Consumers are responding as we might expect during an economic slowdown,” said Cook. “But travel should not simply be viewed as an economic indicator; it should be seen as a part of the solution to our economic woes. There’s no doubt that if we can spur travel, we can help to turn the economy around.”

Despite current economic conditions and lagging consumer confidence, the forecast shows that leisure travel volume remains stable for 2008 (down 0.2 percent) and is expected to decline modestly in 2009 (down 1.3 percent). According to the latest travelhorizons survey co-authored by TIA and Ypartnership, seven out of 10 (71 percent) respondents intend to take an overnight trip of 50 miles or more from home during the next six months. Nearly half (48 percent) of all respondents stated they were not planning any changes to their future travel plans as result of the recent turmoil in the financial markets.

The outlook for business travel is more challenging, with a 3.7 percent decline in volume projected for 2008 and another 2.7 percent decline forecast for 2009, according to TIA’s annual travel forecast. Companies are making decisions to scale back in the current environment and business travel is no exception. Business, meeting and convention travel volume is expected to begin to recover in 2010, increasing 2 percent.

Dr. Peter Yesawich, chairman of Ypartnership, echoed Cook, saying that demand for leisure travel represents the majority of the demand for travel services in the United States today. “More people are boarding aircraft and checking into hotels for leisure than for business,” he said.

The Travel Sentiment Index (TSI) is at 78, the same level it was in July but down from a high of 93 in February. Yesawich said that the TSI appears to have bottomed out, in part because of the industry’s response to the current economic downturn with attractive promotional offers. Three of the six factors that determine the TSI are up -- the perceived safety of travel, the perceived quality of service and the perceived affordability. Three measures are down, a major one being the perceived time available. Time poverty has been taking a toll for quite some time, Yesawich said. There’s been a slight decline of interest in travel, which Yesawich attributed to the current financial crisis and the third criteria, money to spend on travel, is also down.

Yesawich said that the current financial crisis has made value “king” for travelers. That has made inclusively priced vacations -all-inclusives, cruises and vacation packages that include many components paid for in advance- appeal to about 75 percent of active travelers. “To Americans, vacation is a birthright,” Yesawich said, “but many of them will be trading down in terms of budget, length of stay and expenditures on food, beverage and souvenirs.” Yesawich said that the travel industry can stimulate demand with attractive offers but that it must take care to build these offers around the weekend, which sets the parameters for most American vacations.

Although overseas travel to the United States still has not returned to pre-9/11 levels, recent increases in international travel have cushioned the blow of declining domestic travel. This is not expected to hold true in 2009. The Department of Commerce estimates that international arrivals will decline by 1.6 percent in 2009. Overseas travel to the U.S. is expected to decline 3 percent in 2009 and grow very modestly in 2010. By the end of 2011, overseas arrival still will not exceed the record level in 2000. “As the dollar gains strength and the global economy cools, the need to make America more attractive to international travelers grows,” said Cook. “America’s visa process, the entry experience and the lack of communication and promotion all need a second look in this difficult environment. Now is not the time for unnecessary barriers and inefficiencies.”

Yesawich noted that the Canadian dollar has dropped substantially, making Canada a much better value for Americans, and that the peso has dropped 35 percent, making Mexico an extremely affordable winter vacation destination and the English pound has dropped as well.

The National Tour Association Board of Directors has approved decreasing membership dues for 2009 in order to assist its members during the current economic crisis. Members will receive a nearly 15 percent deduction in their membership dues, thanks in part to the tremendous growth the association experienced in 2008.

"We know that times are tough in today’s economy,” said NTA Chairman and CEO Bob Hoelscher, CTP. “NTA wants to continue to be an affordable resource for our members and an available option to new travel companies looking for assistance in dealing with the challenges of running a business in today's marketplace.”

In 2008, NTA experienced unprecedented growth, including the addition of more than 150 new tour operator members. This growth has allowed the association to offer this cost-savings assistance to current and future members in the coming year.

“In addition to the many new members we have already welcomed this year, NTA Headquarters is experiencing a high call volume from businesses interested in joining the association,” said Hoelscher. “In times like these, more companies realize the importance of a professional business organization to find potential partners and tap new markets. NTA offers the business opportunities, such as tour operator partnering and regional product development, to help facilitate this.”

The National Tour Association is the preferred association in the tourism industry for packaged travel professionals. NTA's diverse membership and progressive nature make it an industry leader as the place to do business. NTA consistently seeks innovations for the services and business tools it provides to members, and the leadership keeps its fingers on the pulse of the ever-changing world. In turn, NTA members are some of the most creative in the dynamic travel industry. NTA membership represents 36 countries, and tour and travel packagers of all types, including a group, independent, student, and more. To learn more, please visit www.NTAonline.com.

The Salem Convention and Visitors Association has changed its name, secured a new downtown location for its headquarters, and is expanding visitor information to two locations on Interstate 5.

The group, formerly known as SCVA, will now be Travel Salem. The new name is more concise, a call to action and is in line with recent name changes within the industry such as Travel Oregon and Travel Portland. 

By year’s end, Travel Salem will be relocating its administrative operation as well as the official Salem Area Visitors Center to the Grand Hotel (181 High St.) in the heart of historic downtown Salem.

Travel Salem has coined its new downtown destination visitors center the Salem Travel Cafe. This state-of-the-art visitors center will be designed to showcase the region’s amenities and economic development opportunities.

Travel Salem has operated the official Salem Area Visitors Center, currently located at Mission Mill Museum (1313 Mill St. SE), for 25 years. Gaining access to travelers along Interstate 5 has been a long-time goal of the association.

Travel Salem plans to unveil the Travel Cafe to the public on Dec. 13, in celebration of the Festival of Lights Holiday Parade occurring in downtown Salem that evening.

Along with personal assistance and traditional brochures, the Travel Cafe will offer innovative technology and showcase new non-traditional partnerships. From Wi-Fi access and plasma screens with podcasting to revolving exhibits and promotions, the new Salem Travel Cafe will be one of a kind.

In addition to the downtown Travel Cafe, Travel Salem will be opening two visitor center locations on I-5 via partnerships with the Best Western Mill Creek Inn (3125 Ryan Dr. SE /I-5, exit # 253) and the Red Lion Hotel (3301 Market St. NE/I-5, exit 256). The Best Western Mill Creek Inn location will be a designated Oregon Travel Information Council Travel Plaza. The Red Lion Hotel will be a Travel Salem satellite visitors center. Both locations will be open year-round, 24 hours a day. (503-581-4325, www.travelsalem.com)