Statement of Administration Policy: S. 680 - Tourism Policy and Export Promotion Act of 1991

SENT 10/8/91
(Senate)
(Rockefeller (D) West Virginia and 20 others)

The Administration strongly opposes S. 680, because it would severely and harmfully restrict the authority of the Secretary of Commerce to manage the United States Travel and Tourism Administration (USTTA). Unless S. 680 is amended to delete or satisfactorily modify the following provisions, the Secretary of Commerce will recommend a veto:

Section 10(c). Capping administrative expenses at 50 percent of the annual appropriation would force the USTTA to reduce its staff from 94 to 51 full-time equivalents. This reduction would severely curtail USTTA's service to: (1) potential first-time visitors to the United States; (2) U.S. cities. States, and regions; and (3) small- and medium-size private sector members of the travel industry.

Section 10(b). Requiring USTTA to establish three overseas regional offices to manage its 13 international offices would impose an unnecessary layer of management. It would also waste scarce funds and personnel slots.

Section 6(b). Authorizing USTTA to make grants for tourism trade development programs could lead to the diversion of scarce program dollars needed for current, higher-priority programs. A floor amendment may be offered that would replace the authorization for grants with an authorization for cooperative marketing activities. This would be preferable, because cooperative marketing activities, which involve State and local government, the private sector, and the Federal Government, are a more effective way to provide assistance to promote tourism.

Section 10(a). Requiring a career civil servant to be designated Deputy Under Secretary for Tourism Trade Development is an inappropriate infringement on the Secretary's ability to manage the Department of Commerce. Given the sensitive policy matters that can arise when the Under Secretary is absent, the Deputy Under Secretary should be a political appointee. The functions specified for the new career Deputy Under Secretary are presently performed by a career Deputy Assistant Secretary for Tourism Marketing.

The Administration also urges that S. 680 be amended to:

— Eliminate the provisions of Section 3 which lay the foundation for moving from quarterly to monthly publication of international travel receipts and payments. Switching to a monthly reporting system would be burdensome and would not yield benefits commensurate with the costs, which could be as high as $15 million.

— Delete Section 8, which would establish a Rural Tourism Development Foundation as a charitable and nonprofit corporation. Creation of a Federally-chartered, nominally private foundation to assist a Federal agency in accomplishing its mission would pose legal problems.

— Revise Section 11 to authorize appropriations of "such sums as may be necessary" for FYs 1993, 1994, and 1995.

— Delete Section 7, which would require the Secretary to ensure that the services of the United States and Foreign Commercial Service continue to be available to assist USTTA. It is inappropriate to require in law that the Secretary ensure that agencies in his Department assist each other.