PRESS RELEASE

March 9, 2004
FOR IMMEDIATE RELEASE
Contact: Debra Kelman Loew
212.794-3577

TRAVEL BUSINESS ROUNDTABLE TAKES LEAD IN CREATING A STRATEGY ON HOW TO STRIKE A BALANCE BETWEEN HOMELAND SECURITY AND THE ECONOMY

The Travel Business Roundtable (TBR) has taken a lead role within the travel and tourism industry with the release of a white paper for the Department of Homeland Security that includes recommendations to fortify America’s borders while sustaining an industry that contributes to a prospering U.S. economy.

Entitled, "Homeland Security and the Travel and Tourism Industry - Finding the Proper Balance," the document underscores DHS Secretary Tom Ridge’s admonition about the need to create the proper balance between protecting our homeland and promoting free and open commerce. As such, TBR’s goal is to ensure that protecting our nation’s security does not compromise economic vitality.

"Protecting our homeland from terrorist threats is the primary focus of the government and of the travel and tourism industry," notes Jonathan Tisch, Chairman of TBR and Chairman and CEO of Loews Hotels. "However, The Department of Homeland Security, the State Department, Congress and the Bush Administration must consider the collective impact of all the various policies that are being incrementally implemented. At TBR our goal is to ensure that the paramount objective of protecting our nation’s security is pursued in a manner that is effective and coherent. Together, though, we must also work to protect the economic vitality of the travel and tourism industry and, ultimately, the U.S. economy. Hopefully, this paper will serve as a vehicle for developing sound policies that will work."

One of the biggest challenges that is affecting the travel and tourism industry in particular is the competing and sometimes conflicting homeland security issues. Among them are the Visa Waiver Program (VWP), visa processing, U.S. Visitor and Immigration Status Identification Technology (US-VISIT) program, and Computer Assisted Passenger Pre-Screening Program (CAPPS II).

The seemingly haphazard implementation of these programs, along with the lack of a coherent outreach strategy to educate foreign travelers about U.S. travel requirements, is inadvertently reaffirming the perception of “Fortress America,” where foreigners are not welcome to visit the U.S. This image also presents the corollary threat of reciprocity from these countries, some of which are the nation's closest allies.

While specific recommendations are outlined in the policy paper, TBR advocates the need to develop a multi-media public education campaign in foreign countries in conjunction with private sector entities and conducted by U.S. embassies and the U.S. Foreign and Commercial Service to clarify the concerns of vacationers and business travelers. Without such an effort, and in the absence of efficient and workable homeland security policies, American job growth, tax and travel trade surplus revenues, as well as the image of the U.S. around the world, could be disastrous.

“We believe that it is imperative that homeland security policy strike the necessary balance that will allow the vibrant travel and tourism industry to help America continue on the road to economic recovery,” Tisch adds.

The following are highlights from the Paper on the key issues the industry is most concerned about:

Visa Waiver Program (VWP) — The October 26, 2004 deadline requiring travelers from VWP countries to have passports with biometric identifiers coincides with the extended deadline for all VWP passports to be machine-readable. A potential crisis was postponed with the delay of the MRP deadline last October. However, the new deadline still looms on the horizon. While TBR supports the implementation of these technologies for strengthening security at our nation’s borders, we are concerned that enforcing such requirements without allowing sufficient time to meet them could cause harm not only to our industry but also to our nation’s image around the world. Sixty eight percent of all inbound arrivals to the U.S. come from VWP countries. Failure to delay the biometrics deadline, or at least increase funding for additional personnel at our consular offices, could adversely affect bilateral relationships and our own economy. In addition, the United States itself does not intend to begin issuing biometric passports until 2005, which suggests we are asking our allies to conform to deadlines that we ourselves cannot meet.

Visa Processing æ Delays at consular offices and airports are beginning to lead international travelers to assume that cumbersome and intrusive delays are the norm. The U.S. government has conducted insufficient public relations outreach to the international traveling public to offset these perceptions, and the negative views are growing. TBR is concerned that delays and inefficient interviewing processes have ensued due to the fact that no increased staffing, federal funding or overtime hours were authorized to make this process efficient.

US-VISIT — The US-VISIT program was officially launched on January 5, 2004 at 115 airports and 14 seaports. The system, created by Congress to better track foreign travelers crossing our borders, requires all visitors entering the U.S. with a visa to submit biometric identifiers at ports of entry. The initial phase requires two fingerprint scans and a digital photograph. According to reports from DHS, US-VISIT has already uncovered 30 known criminals and is building on its suspected terrorist watch list. TBR is pleased that no significant delays at entry ports have been reported. However, it is critical that all aspects of the system function in accordance with one another in order to monitor our borders and protect our homeland effectively. Therefore, it is vital that DHS conduct a thorough evaluation of the US-VISIT system in its initial implementation phase to determine where problems might exist, develop projections of capacity for inclusion of additional classes of travelers, test concepts for future implementation phases and set realistic goals to ensure the success of this endeavor.

CAPPS II — Designed to identify potential terrorists before they board a commercial aircraft, the CAPPS II system is scheduled to undergo testing as early as this summer. As a fully functioning system, CAPPS II will require airlines to provide information to the government on all passengers traveling through the U.S. Risk assessment technology will then rank passengers according to their possible threat to security and assign them to one of three risk categories – acceptable, unknown or unacceptable. A recent report from the General Accounting Office (GAO) found that TSA is behind schedule in the initial planning stages. Additionally, questions about the system’s functionality, cost and privacy safeguards have yet to be answered.

Currently, it seems the execution of CAPPS II will be delayed while no definitive timeline for testing and implementation has been established. While means for ensuring security, privacy and redress are currently being examined, TBR encourages TSA to develop a definitive plan citing tasks to be achieved, deadlines to be met and estimated costs. TBR is encouraging the government to ensure that the system will effectively secure the airways while not overstepping the bounds of personal privacy.

In the White Paper, TBR also outlines some additional concerns regarding the following:

• Transit Without Visa and International-to-International programs;
• First responder funds for U.S. cities;
• Food security; and
• Airline Missile Defense;

For a complete copy of the White Paper, click here.

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