PRESS RELEASE

FOR IMMEDIATE RELEASE
Contact: Debra Kelman Loew
212-794-DKPR (3577)
917.612.2325 (cell)
dkelman@dkpr.com

September 9, 2003

TRAVEL BUSINESS ROUNDTABLE APPLAUDS STATE DEPARTMENT FOR EXERCISING WAIVER AUTHORITY

Reversal of Visa Policy Spells Victory for the U.S. Travel and Tourism Industry

WASHINGTON, D.C. — In response to concerns raised by the Travel Business Roundtable (TBR) and other industry organizations, the State Department has agreed to use its waiver authority and postpone the implementation of a regulation requiring travelers from Visa Waiver Program (VWP) countries to have Machine Readable Passports (MRP) for entry into the United States. The policy is now scheduled to go into effect on October 26, 2004 rather than next month.

In the USA Patriot Act, Congress included language moving the deadline for implementation of MRPs from 2007 to 2003, but granted the Secretary of State the authority to postpone implementation if the eligible VWP country was making progress toward issuing MRPs and taking appropriate measures to protect against the misuse of passports.

Twenty-six of the 27 VWP countries, including the United Kingdom, Japan, Switzerland, Spain, Italy and France, will now have an additional year to enforce the new requirement. Belgium, which has had the requirement since May 15, 2003, will not be affected.

"We are very pleased the State Department has addressed our concern that the October 1, 2003 deadline could have severely impacted international travel to the United States, causing a further decline in international visitors," says Jonathan Tisch, Chairman of TBR and Chairman and CEO of Loews Hotels. “We must strive to implement these new policies in a manner that will protect our security while being the least disruptive to the traveling public and minimizing the detrimental effect on the U.S. economy.”

International travel has declined by 12 percent in the last two years, resulting in a loss of $12 billion. There is some cause for optimism, however. Following Congressional approval earlier this year, $50 million was appropriated to fund an international destination marketing campaign, the first such undertaking by the U.S. government. The U.S. Travel and Tourism Promotion Advisory Board, appointed by Secretary of Commerce Donald Evans earlier this summer, will advise the Commerce Department on the creation and implementation of the marketing and communications campaign, designed to increase the number of international visitors to the U.S. The Board held its first meeting on September 8 at Ellis Island in New York City.

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