PRESS RELEASE

For Immediate Release

TRAVEL BUSINESS ROUNDTABLE URGES CONGRESS TO INCLUDE SUPPORT FOR THE TRAVEL AND TOURISM INDUSTRY IN ANY ECONOMIC STIMULUS PACKAGE

Hundreds of thousands of industry jobs have been lost since September 11; local economies reporting millions of dollars in tourism-related losses

WASHINGTON, D.C. - October 5, 2001 -- With Congress and the Bush administration expected to act on a package of tax relief and other initiatives designed to stimulate economic growth, the Travel Business Roundtable (TBR), has called on lawmakers to take immediate action to help the travel and tourism industry recover from the devastating economic fallout that followed the events of September 11.

In a letter distributed to all members of Congress, Jonathan M. Tisch, chairman of the TBR and chairman and CEO of Loews Hotels, said that the terrorist attacks have crippled the industry as public confidence in the safety of travel has been severely undermined. "Hard data as well as anecdotal experience suggest that meetings are being postponed; all but critical corporate travel is being delayed; and individuals are canceling or postponing personal travel plans within the U.S. and abroad," wrote Tisch. "These disturbing trends are all occurring against the backdrop of an overall U.S. economy that is in decline."

According to Tisch, travel and tourism activity-related federal, state and local tax revenues, which were nearly $100 billion in 2000, stand to be significantly impacted as well. Local governments often rely on hotel room or hospitality surcharges for revenue to fund projects such as stadiums or convention centers. With a significant decrease in this revenue source, servicing the debt on existing projects will be difficult and new civic projects could be stalled, or abandoned altogether.

TBR urged Congress to adopt immediate and long-term measures that would help the travel and tourism industry get back on its collective feet. Specific measures for Congress to include in an economic stimulus package are:

	Steps to help displaced workers. Including, direct assistance by the federal government to those states that may be overwhelmed with worker compensation and unemployment claims resulting from the September 11 attacks, and assurance by the federal government that health benefits will be continued for displaced workers.
	Measures to encourage people to travel again. Including the full restoration of the business meal and entertainment deduction, and restoration of the tax deduction for travel expenses of a spouse accompanying an employee on a business trip to 100 percent.
	Actions to ensure liquidity for the industry. Including payroll tax relief for employers and employees, and the extension of eligibility for the Small Business Administration’s (SBA) Economic Injury Disaster Relief Program to otherwise qualified small businesses across the country that are unable to meet necessary financial obligations as a result of the September 11 attacks. TBR also requested that the SBA Administrator be granted discretionary authority to adjust the size standards for eligibility to ensure that firms falling outside the SBA’s definition of "small" are not inadvertently left behind.

In addition to the stimulus package, TBR reaffirmed its call for the creation of a Presidential Advisory Council on Travel and Tourism that would be comprised of representatives from the public, private and non-profit sectors, and would work with the Executive Branch on tourism policymaking and implementation. The TBR also urged the federal government to partner with the travel and tourism industry to launch a substantive advertising and marketing campaign that promotes the United States as a travel destination.

According to Tisch, immediate action on both of these initiatives would further stimulate a much-needed recovery of the travel and tourism industry.

The Travel Business Roundtable is a CEO-based organization representing all sectors of the travel and tourism industry, including major airlines, hotels and lodging, restaurants, retail outlets, travel management companies, car rental companies, financial services institutions and others. Comprised of more than 60 corporate, labor and trade associations, TBR’s roster of members reflects the interdependence of all sectors of the travel and tourism industry and demonstrates the need to work collaboratively. Additional information on the TBR can be found at www.tbr.org.

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EDITOR’S NOTE: A copy of the letter is attached.

Media Contacts:
Matt Triaca - 202/530-4690
Jeffery Stewart - 212/521-2816
Debra Kelman - 212-794-DKPR (3577)

ATTACHMENT: TRAVEL BUSINESS ROUNDTABLE LETTER TO CONGRESS

October 4, 2001

Dear [NAME HERE] :

On behalf of the Travel Business Roundtable ("TBR"), I am writing to alert you to the crisis now confronting the U.S. travel and tourism industry and to outline several concrete steps that the Administration and Congress can take to help the industry recover from the crushing blow it received as a result of the September 11th terrorist attacks on our country.

Comprised of more than 60 corporate, labor, and trade association members, the TBR is proud to represent the broad diversity of the U.S. travel and tourism industry. During the past decade, travel and tourism has emerged as one of our nation’s most productive engines of economic growth. As of last January, more than 17 million Americans were employed in travel and tourism-related jobs, with an annual payroll of $159 billion. Travel and tourism was the first, second, or third largest industry in 28 states and the District of Columbia. And last year, travel and tourism generated an annual trade surplus of $17 billion as well as nearly $100 billion in tax revenues for Federal, state, and local governments.

Unfortunately, the September 11th attacks have crippled our industry as public confidence in the safety of travel has been severely undermined, if not shattered. Hard data as well as anecdotal experience suggest that meetings are being postponed; all but critical corporate travel is being delayed; and individuals are canceling or postponing personal travel plans within the U.S. and abroad. These disturbing trends are all occurring against the backdrop of an overall U.S. economy that is in decline.

Let me be even more specific: Since September 11, hundreds of thousands of travel and tourism jobs have been lost across the country; major U.S. cities are already reporting tens of millions of dollars in tourism-related losses; airlines, having drastically reduced their flight schedules are filling less than 60 percent of their seats on most flights; hotels stand to lose more than $2 billion in room revenue; more than 25% of meetings and conventions scheduled to take place by the end of the year have been canceled; and travel agencies are reporting tens of millions of dollars in sales losses each day.

To stop and reverse these alarming trends, we need your help and we need it now.

As an immediate step, we urge you to speak out in as many forums as possible about the continued safety of travel and its importance to the U.S. economy. The message to the American people must be clear-to change our way of life is a capitulation to the terrorists. We applaud President Bush’s recent public comments about the importance of travel as well as his decision to reopen Reagan National Airport.

We also understand that Congress and the Administration are developing a package of tax relief and other initiatives designed to stimulate economic growth. As you review the range of options available to you, we hope you will consider the following proposals that will be particularly helpful to the U.S. travel and tourism industry in the near term as the industry tries to get back on its collective feet. These proposals are designed to achieve three goals: 1) to assist the hundreds of thousands of workers within the travel and tourism industry who have been displaced since September 11th; 2) to encourage people to travel again for both business and leisure purposes; and 3) to increase liquidity for travel and tourism-related businesses, both large and small, that are currently confronting severe cash flow problems.

Accordingly, we propose:

Helping Displaced Workers

	Direct assistance by the Federal government to those states that may be overwhelmed with worker compensation and unemployment claims resulting from the September 11th attacks.
	Assurance by the Federal government that health benefits will be continued for displaced workers.

Encouraging People to Travel Again

	Full restoration of the business meal and entertainment deduction.
	Restoration of the tax deduction for travel expenses of a spouse accompanying an employee on a business trip to 100%.

Liquidity

	Payroll tax relief for employers and employees.
	Extension of eligibility for the Small Business Administration’s Economic Injury Disaster Relief Program to otherwise qualified small businesses across the country that are unable to meet necessary financial obligations as a result of the September 11th attacks.
	Granting discretionary authority to the SBA Administrator to adjust size standards for eligibility to ensure that firms falling outside the SBA’s definition of "small" are not inadvertently left behind.

On a longer-term basis, two additional steps should be taken. First, a top priority for the TBR has been the creation of a Presidential Advisory Council on Travel and Tourism. We envision the Advisory Council, whose members would hail from the public, private and non-profit sectors, as the fulcrum for tourism policymaking and implementation within the Executive Branch. The Advisory Council should be established as quickly as possible. Second, the Federal government, in partnership with the private sector, should help finance an advertising campaign that promotes the United States as a travel destination of choice for the foreign tourist and stimulates greater travel within the United States. The TBR strongly believes that such a campaign, if properly conceived, can pay substantial dividends in the form of increased tourism throughout our country.

As more governors and mayors speak out about the damaging consequences of September 11th for state and local governments, both in terms of lost revenues and spiraling unemployment claims, one salient truth emerges: Travel and tourism is a nationwide industry whose enormous economic presence in all 435 Congressional Districts must not be ignored.

Thank you for giving me this opportunity to share my thoughts with you. If you have any questions or suggestions, please contact me directly or call Chuck Merin, TBR’s Washington representative, at (202) 530-4829. For your review, I have also attached TBR’s membership list and a snapshot summary of the devastating impact that September 11th has had on our industry.

Those of us at the TBR wish you every success as you undertake your important responsibilities during these difficult times. Our thoughts and prayers are with you.

Sincerely,

Jonathan M. Tisch
Chairman

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