[House Hearing, 116 Congress]
[From the U.S. Government Publishing Office]
REAUTHORIZING BRAND USA AND THE U.S. SAFE WEB ACT
=======================================================================
HEARING
BEFORE THE
SUBCOMMITTEE ON CONSUMER PROTECTION AND COMMERCE
OF THE
COMMITTEE ON ENERGY AND COMMERCE
HOUSE OF REPRESENTATIVES
ONE HUNDRED SIXTEENTH CONGRESS
FIRST SESSION
__________
OCTOBER 29, 2019
__________
Serial No. 116-75
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Printed for the use of the Committee on Energy and Commerce
govinfo.gov/committee/house-energy
energycommerce.house.gov
______
U.S. GOVERNMENT PUBLISHING OFFICE
43-859 PDF WASHINGTON : 2021
COMMITTEE ON ENERGY AND COMMERCE
FRANK PALLONE, Jr., New Jersey
Chairman
BOBBY L. RUSH, Illinois GREG WALDEN, Oregon
ANNA G. ESHOO, California Ranking Member
ELIOT L. ENGEL, New York FRED UPTON, Michigan
DIANA DeGETTE, Colorado JOHN SHIMKUS, Illinois
MIKE DOYLE, Pennsylvania MICHAEL C. BURGESS, Texas
JAN SCHAKOWSKY, Illinois STEVE SCALISE, Louisiana
G. K. BUTTERFIELD, North Carolina ROBERT E. LATTA, Ohio
DORIS O. MATSUI, California CATHY McMORRIS RODGERS, Washington
KATHY CASTOR, Florida BRETT GUTHRIE, Kentucky
JOHN P. SARBANES, Maryland PETE OLSON, Texas
JERRY McNERNEY, California DAVID B. McKINLEY, West Virginia
PETER WELCH, Vermont ADAM KINZINGER, Illinois
BEN RAY LUJAN, New Mexico H. MORGAN GRIFFITH, Virginia
PAUL TONKO, New York GUS M. BILIRAKIS, Florida
YVETTE D. CLARKE, New York, Vice BILL JOHNSON, Ohio
Chair BILLY LONG, Missouri
DAVID LOEBSACK, Iowa LARRY BUCSHON, Indiana
KURT SCHRADER, Oregon BILL FLORES, Texas
JOSEPH P. KENNEDY III, SUSAN W. BROOKS, Indiana
Massachusetts MARKWAYNE MULLIN, Oklahoma
TONY CARDENAS, California RICHARD HUDSON, North Carolina
RAUL RUIZ, California TIM WALBERG, Michigan
SCOTT H. PETERS, California EARL L. ``BUDDY'' CARTER, Georgia
DEBBIE DINGELL, Michigan JEFF DUNCAN, South Carolina
MARC A. VEASEY, Texas GREG GIANFORTE, Montana
ANN M. KUSTER, New Hampshire
ROBIN L. KELLY, Illinois
NANETTE DIAZ BARRAGAN, California
A. DONALD McEACHIN, Virginia
LISA BLUNT ROCHESTER, Delaware
DARREN SOTO, Florida
TOM O'HALLERAN, Arizona
------
Professional Staff
JEFFREY C. CARROLL, Staff Director
TIFFANY GUARASCIO, Deputy Staff Director
MIKE BLOOMQUIST, Minority Staff Director
Subcommittee on Consumer Protection and Commerce
JAN SCHAKOWSKY, Illinois
Chairwoman
KATHY CASTOR, Florida CATHY McMORRIS RODGERS, Washington
MARC A. VEASEY, Texas Ranking Member
ROBIN L. KELLY, Illinois FRED UPTON, Michigan
TOM O'HALLERAN, Arizona MICHAEL C. BURGESS, Texas
BEN RAY LUJAN, New Mexico ROBERT E. LATTA, Ohio
TONY CARDENAS, California, Vice BRETT GUTHRIE, Kentucky
Chair LARRY BUCSHON, Indiana
LISA BLUNT ROCHESTER, Delaware RICHARD HUDSON, North Carolina
DARREN SOTO, Florida EARL L. ``BUDDY'' CARTER, Georgia
BOBBY L. RUSH, Illinois GREG GIANFORTE, Montana
DORIS O. MATSUI, California GREG WALDEN, Oregon (ex officio)
JERRY McNERNEY, California
DEBBIE DINGELL, Michigan
FRANK PALLONE, Jr., New Jersey (ex
officio)
C O N T E N T S
----------
Page
Hon. Jan Schakowsky, a Representative in Congress from the State
of Illinois, opening statement................................. 1
Prepared statement........................................... 2
Hon. Cathy McMorris Rodgers, a Representative in Congress from
the State of Washington, opening statement..................... 3
Prepared statement........................................... 5
Hon. Peter Welch, a Representative in Congress from the State of
Vermont, opening statement..................................... 6
Hon. Greg Walden, a Representative in Congress from the State of
Oregon, opening statement...................................... 6
Prepared statement........................................... 8
Hon. Frank Pallone, Jr., a Representative in Congress from the
State of New Jersey, prepared statement........................ 61
Witnesses
Christopher L. Thompson, President and Chief Executive Officer,
Brand USA...................................................... 10
Prepared statement........................................... 12
Additional material submitted for the record \1\
Tori Emerson Barnes, Executive Vice President, Public Affairs and
Policy, U.S. Travel Association................................ 21
Prepared statement........................................... 23
Aaron Burstein, Partner, Wilkinson Barker Knauer, LLP............ 28
Prepared statement........................................... 30
Submitted Material
H.R. 3851, the Travel Promotion, Enhancement, and Modernization
Act of 2019.................................................... 63
Discussion Draft, H.R. 4779...................................... 65
Article of May 15, 2019, ```Brand USA' helps keep Oregon a world-
class travel destination,'' by James Brandt, Hood River News,
submitted by Mr. Walden........................................ 67
Letter of October 25, 2019, from Joseph J. Simons, Chairman,
Federal Trade Commission, et al., to Ms. Schakowsky and Mrs.
Rodgers, submitted by Ms. Schakowsky........................... 69
Letter of October 29, 2019, from Marc Rotenberg, President,
Electronic Privacy Information Center, et al., to Ms.
Schakowsky and Mrs. Rodgers, submitted by Ms. Schakowsky \2\
Letter of October 29, 2019, from Brian C. Crawford, Executive
Vice President, Government Affairs, American Hotel & Lodging
Association, to Mr. Pallone, et al., submitted by Ms.
Schakowsky..................................................... 74
----------
\1\ Two documents submitted by Mr. Thompson, ``Annual Report: Fiscal
Year 2018, Brand USA'' and ``The Return on Investment of Brand USA
Marketing: FY 2018,'' have been retained in committee files and also
are available at https://docs.house.gov/Committee/Calendar/
ByEvent.aspx?EventID=110153.
\2\ The letter has been retained in committee files and also is
available at http://docs.house.gov/meetings/IF/IF17/20191029/110153/
HHRG-116-IF17-20191029-SD006.pdf.
REAUTHORIZING BRAND USA AND THE U.S. SAFE WEB ACT
----------
TUESDAY, OCTOBER 29, 2019
House of Representatives,
Subcommittee on Consumer Protection and Commerce,
Committee on Energy and Commerce,
Washington, DC.
The subcommittee met, pursuant to call, at 2:28 p.m., in
Room 2322, Rayburn House Office Building, Hon. Jan Schakowsky
[chairwoman of the subcommittee] presiding.
Members present: Representatives Schakowsky, Castor,
Veasey, Kelly, O'Halleran, Blunt Rochester, Soto, Matsui,
McNerney, Rodgers (subcommittee ranking member), Burgess,
Latta, Guthrie, Bucshon, Hudson, Carter, and Walden (ex
officio).
Also present: Representatives Welch and Bilirakis.
Staff present: Lisa Goldman, Senior Counsel; Waverly
Gordon, Deputy Chief Counsel; Alex Hoehn-Saric, Chief Counsel,
Communications and Consumer Protection; Zach Kahan, Outreach
and Member Service Coordinator; Meghan Mullon, Staff Assistant;
Joe Orlando, Executive Assistant; Alivia Roberts, Press
Assistant; Tim Robinson, Chief Counsel; Chloe Rodriguez, Policy
Analyst; Sydney Terry, Policy Coordinator; Rebecca Tomilchik,
Staff Assistant; Anna Yu, Professional Staff Member; Margaret
Tucker Fogarty, Minority Legislative Clerk/Press Assistant;
Theresa Gambo, Minority Financial and Office Administrator;
Bijan Koohmaraie, Minority Deputy Chief Counsel, Consumer
Protection and Commerce; Tim Kurth, Minority Chief Counsel,
Consumer Protection and Commerce; and Brannon Rains, Minority
Legislative Clerk.
Ms. Schakowsky. The Subcommittee on Consumer Protection and
Commerce will now come to order. So let me thank all of you for
coming. I appreciate it. We had a vote, and so I am glad that
you are all here, and we can begin.
OPENING STATEMENT OF HON. JAN SCHAKOWSKY, A REPRESENTATIVE IN
CONGRESS FROM THE STATE OF ILLINOIS
So today we are going to be talking about reauthorizing two
important programs in the subcommittee's jurisdiction.
When I talk about my subcommittee to constituents of mine,
I often tell them that the Energy and Commerce Committee has
the broadest jurisdiction of any standing committee in the
Congress, but also that this Subcommittee on Consumer
Protection and Commerce also has the largest jurisdiction. And
nothing makes this point more clear than today's hearing when
we will discuss legislation to promote inbound travel and
tourism to the United States and legislation to help the
Federal Trade Commission protect Americans from fraud that
originates overseas.
Brand USA was authorized to work directly with the United
States tourism and travel industry to maximize the social and
economic benefits of travel. The bill we are considering today
was introduced by my friend and colleague and author of the
legislation, Peter Welch, and I want to thank him for his
leadership on this very important issue.
I am sure that all of my colleagues here would agree that
their lives have been enhanced by their own travel, and we all
appreciate tourism coming to our direction and experiencing
what we each love so much about the districts that we
represent.
Brand USA has been great for Chicago, and I am so excited
to make sure that the program is reauthorized.
I am also pleased that we are reauthorizing the U.S. SAFE
WEB Act. Congress amended the Federal Trade Commission Act in
2006 to bolster the FTC's ability to combat fraud that
originates overseas.
Doing so strengthened the FTC in four ways. One, it
confirmed that the agency's jurisdiction extends to foreign
wrongdoers that harm U.S. consumers. Two, it authorizes limited
but proper collaboration with foreign law enforcement,
including investigative assistance and the sharing of
information. Three, it enhances the FTC's ability to receive
information from foreign countries by allowing confidential
treatment of information received. And four, it promotes
relationship building by allowing the FTC to participate in
staff exchanges with their foreign counterparts.
The bill we are discussing today, which would reauthorize
these authorities for another 7 years, was introduced by my
friend and colleague and ranking member of the subcommittee,
Cathy McMorris Rodgers, and I want to thank her for her
leadership on this issue and her partnership on the
subcommittee as ranking member.
I am proud to be the cosponsor of both these pieces of
legislation and look forward to working with staff and
stakeholders.
[The proposed legislation appears at the conclusion of the
hearing. The prepared statement of Ms. Schakowsky follows:]
Prepared Statement of Hon. Jan Schakowsky
Good morning and thank you all for joining us today for a
hearing on reauthorizing two important programs in this
subcommittee's jurisdiction.
When I talk to constituents about my role here in the
Energy and Commerce Committee, I often tell them that Energy
and Commerce has the broadest jurisdiction of any standing
committee in the House, and that this subcommittee has the
broadest jurisdiction of any Energy and Commerce subcommittee.
And nothing makes this more clear than today's hearing,
where we will discuss legislation to promote inbound travel and
tourism to the United States, and legislation to help the
Federal Trade Commission protect Americans from fraud that
originates overseas.
Brand USA was authorized to work directly with the United
States' tourism and travel industry to maximize the social and
economic benefits of travel. The bill we are considering today
was introduced by my friend and colleague Peter Welch, and I
thank him for his leadership on this important issue.
I am sure that all of my colleagues here would agree that
their lives have been enriched by their own travels, and we all
appreciate tourists coming to our district and experiencing
what we each love so much about the districts we represent.
Brand USA has been great for Chicago, so I am excited to
make sure that the program is reauthorized.
I also am pleased that we are reauthorizing the U.S. SAFE
WEB Act. Congress amended the Federal Trade Commission Act in
2006 to bolster the FTC's ability to combat fraud that
originates overseas. Doing so strengthened the FTC in four key
ways:
1. It confirmed the agency's jurisdiction extends to
foreign wrongdoers that harm U.S. consumers.
2. It authorized limited but proper collaboration with
foreign law enforcement, including investigative assistance and
the sharing of information.
3. It enhanced the FTC's ability to receive information
from foreign counterparts by allowing confidential treatment of
information received.
4. It promoted relationship building by allowing the FTC to
participate in staff exchanges with their foreign counterparts.
The bill we are discussing today, which would reauthorize
these authorities for another seven years, was introduced by my
friend, colleague, and Ranking Member Cathy McMorris Rodgers.
Thank you for your leadership on this, and your partnership on
the subcommittee, Ranking Member Rodgers.
I am a proud cosponsor of both of these bills, and I look
forward to working with stakeholders and colleagues to advance
these important reauthorizations promptly.
Ms. Schakowsky. And now I would like to yield the balance
of my time to Congresswoman Robin Kelly.
Ms. Kelly. Thank you, Chairwoman Schakowsky, for holding
this legislative hearing on H.R. 4779, the SAFE WEB Act, and
H.R. 3851, Reauthorizing Brand USA.
H.R. 4779 is an important bipartisan bill that will allow
the FTC to continue international cooperation for
investigations of fraud and abuse. Online criminals know no
borders, and Americans are often targeted from abroad. With the
SAFE WEB Act, the FTC can share information and prohibit third-
party recipients of a subpoena from notifying the target during
an investigation. These are essential tools to build cases that
can bring victims needed justice.
As an international leader in consumer protection, the FTC
will also be able to continue its relationship building with
international staff exchanges. These exchanges provide
continued leadership for the FTC and help train other partners
in enforcementbest practices.
It has been a true pleasure working with Ranking Member
McMorris Rodgers on the SAFE WEB Act.
And I yield back.
Ms. Schakowsky. The gentlelady yields back.
And now I am happy to recognize Mrs. Rodgers, our ranking
member, for an opening statement of 5 minutes.
OPENING STATEMENT OF HON. CATHY McMORRIS RODGERS, A
REPRESENTATIVE IN CONGRESS FROM THE STATE OF WASHINGTON
Mrs. Rodgers. Good afternoon, and welcome to the Consumer
Protection and Commerce Subcommittee legislative hearing today
on reauthorizing two important U.S. programs, Brand USA and the
U.S. SAFE WEB Act.
Earlier this year, this subcommittee held an oversight
hearing with the Federal Trade Commission where we focused much
of our attention on data privacy and how we can come together
in Congress to deliver a Federal bill that provides uniform and
strong consumer protections.
At that same hearing, the Commission impressed upon us the
importance of the U.S. SAFE WEB Act and the need to extend it.
The Commissioners testified that it was key to the FTC's
international work, and we agree.
Today is the first step in extending this vital program. I
want to thank the gentlelady from Illinois, Robin Kelly, along
with Mr. Bucshon and Chair Schakowsky, for joining on this bill
to extend the U.S. SAFE WEB Act so that it doesn't expire next
September. Our proposal extends the program to 2027 and
requires additional reporting from the 2006 bill so the FTC can
report back on the critical work performed over the past
decade.
Since its passage in 2006 and its reauthorization, this
program has proven to be an important part of the Commission's
work. In our digital and connected world, the internet and e-
commerce knows no boundaries, so it is vital to provide tools
for the Commission's international work.
Thanks to the internet, small businesses, like etailz in
Spokane Valley, can now reach people and customers globally.
The internet has also made life-changing innovations possible
that have raised our standard of living and connected us with
the world.
However, it has also presented new opportunities for
criminals and bad actors. There are spam, spyware, misleading
claims, privacy violations, data security breaches,
telemarketing fraud, and more.
To protect Americans, the FTC is our top cop on the beat
both here at home and abroad. Thanks to the SAFE WEB Act, the
Commission can work on cases with an international dimension.
Specifically, the Commission can share evidence and provide
assistance to foreign authorities.
The Commission can also enter into enhanced enforcement
cooperation with foreign counterparts through staff exchanges,
international agreements, and other mechanisms.
And the program has been a resounding success. Because of
the SAFE WEB, the Commission has responded to more than 130
information-sharing requests, issued more than 115 civil
investigative demands in more than 50 investigations on behalf
of foreign agencies, and secured settlements against companies
that violated children's privacy online, engaged in sweepstakes
scams, deception, and so much more.
The program has been critical to securing the EU-U.S.
Privacy Shield, which was extended by the EU Commission last
week. Because the internet is borderless, this agreement safely
and securely preserves the ability for U.S. companies to do
business online in the EU by allowing transatlantic data flows.
U.S. SAFE WEB is a successful tool for the FTC to protect
Americans from online threats from overseas, and I am so
pleased that we are extending it today on a bipartisan basis.
I also want to thank Mr. Welch and Mr. Bilirakis for their
leadership in reauthorizing Brand USA. Brand USA is a vital
program to attract foreign visitors to the U.S. at no cost to
taxpayers. Their focus on bringing tourism to areas like
eastern Washington is spurring economic growth and is creating
excitement around other parts of the country outside of the
big-city gateways.
Thank you again to our witnesses for being with us today,
and I look forward to discussing these two important bills.
I now yield back.
[The prepared statement of Mrs. Rodgers follows:]
Prepared Statement of Hon. Cathy McMorris Rodgers
Good afternoon and welcome to the Consumer Protection and
Commerce Subcommittee legislative hearing today on
reauthorizing two important U.S. programs: Brand USA and the
U.S. SAFE WEB Act.
Earlier this year, this subcommittee held an oversight
hearing with the Federal Trade Commission where we focused much
of our attention on data privacy and how we can come together
in Congress to deliver a Federal bill that provides uniform and
strong consumer protections.
At that same hearing, the Commission impressed upon us the
importance of the U.S. SAFE WEB Act and the need to extend it.
The Commissioners testified that it was key to the FTC's
international work--and we agree. Today is the first step in
extending this vital program.
I want to thank my good friend from Illinois, Ms. Robin
Kelly, along with Mr. Bucshon and Chair Schakowsky, for joining
me on this bill to extend the U.S SAFE WEB Act so that it
doesn't expire next September.
Our proposal extends the program to 2027 and requires
additional reporting from the 2006 bill, so the FTC can report
back on the critical work performed over the past decade.
Since its passage in 2006, and its reauthorization, this
program has proven to be an important part of the Commission's
mission.
In our digital and connected world, the internet and e-
commerce know no borders, so it's vital to provide tools for
the Commission's international work.
Thanks to the Internet, small companies like etailz in
Spokane Valley can now reach people and customers globally.
The internet has also made life-changing innovations
possible that have raised our standard of living and connected
us with the world.
However, it's also presented new opportunities for
criminals and bad actors.
There's spam, spyware, misleading claims, privacy
violations, data security breaches, telemarketing fraud, and
more.
To protect Americans, the FTC is our top cop on the beat--
both here at home and abroad.
Thanks to the SAFE WEB Act, the Commission can work on
cases with an international dimension.
Specifically, the Commission can share evidence and provide
assistance to foreign authorities.
The Commission can also enter into enhanced enforcement
cooperation with foreign counterparts through staff exchanges,
international agreements, and other mechanisms.
And the program has been a resounding success.
Because of the SAFEWEB, the Commission has responded to
more than 130 information sharing requests, issued more than
115 civil investigative demands in more than 50 investigations
on behalf of foreign agencies and secured settlements against
companies that violated children's privacy online, engaged in
sweepstakes scams, deception, and so much more.
The program has been crucial to securing the EU-U.S.
Privacy Shield, which was just extended by the EU Commission
last week.
Because the internet is borderless, this agreement safely
and securely preserves the ability for U.S. companies to do
business online in the EU by allowing transatlantic data flows.
US SAFEWEB is a successful tool for the FTC to protect
Americans from online threats from overseas. I'm glad we are
extending it on a bipartisan basis.
I also want to thank Mr. Welch and Mr. Bilirakis for their
efforts to reauthorize Brand USA. Brand USA is a vital program
to attract foreign visitors to the US, at no cost to taxpayers.
Their focus on bringing tourism to areas like Eastern
Washington is spurring economic growth and it's creating
excitement around other parts of the country outside of big
city gateways.
Thank you again to our witnesses for being with us today
and I look forward to discussing these two important bills.
I yield back.
Ms. Schakowsky. The gentlelady yields back.
And the Chair now recognizes Mr. Welch for 5 minutes for an
opening statement.
OPENING STATEMENT OF HON. PETER WELCH, A REPRESENTATIVE IN
CONGRESS FROM THE STATE OF VERMONT
Mr. Welch. Well, I will be brief, because I think, Madam
Chair, in addition to saying thank you for holding this
hearing, you really covered why this is so important.
But Brand USA, why wouldn't we want to do it when it is
working? And we have a challenge. There is a huge economic
benefit from tourism. International tourism is especially
useful for our economy, and we are going to be hearing from the
witnesses about the thousands of jobs and billions and billions
of dollars of revenue.
But there is another reason, I think, Mr. Bilirakis and I
have worked on this. We do have a dispute, by the way, the two
of us. He has some illusion that foreign visitors are attracted
to Disney World, not Ben & Jerry's, but there is room for both
of us.
Mr. Bilirakis. There is room for both of us, absolutely.
Mr. Welch. But here is the thing that is so important and
what I find so really good working on issues where there is
common ground. The tourism industry, it really requires people
who live in each one of our communities to be so invested in
what it is they are offering, their bed and breakfast or their
Disney World or their Ben & Jerry's, whatever it is. It is
local people who have enormous pride of place. And what they
are selling, in effect, or offering, is this invitation to
visitors to come and enjoy it.
And it is so beneficial not just for the folks who work
there, not just for the State revenues, but for sustaining that
sense of community that all of us, all of us, in every part of
this country, eastern Washington, in Florida, in Vermont, in
Illinois, that we want to encourage and assist.
So this is a public-private partnership, you know, a little
bit on the visa and then significant contributions from the
industry in kind, and this advertising makes a difference.
So it is really a thrill to have this hearing. And thank
you so much for being so strong an advocate of this, Chairwoman
Schakowsky and McMorris Rodgers.
And to my partner, thank you. But come up and get some Ben
& Jerry's, all right?
Thank you.
Ms. Schakowsky. You could bring it.
Does the gentleman yield back?
Mr. Welch. I am sorry. I yield back.
If we get this bill passed, Ben & Jerry's all around.
[Laughter.]
Ms. Schakowsky. That is a deal. Hey.
The Chair now recognizes Mr. Walden, ranking member of the
full committee, for 5 minutes for his opening statement.
OPENING STATEMENT OF HON. GREG WALDEN, A REPRESENTATIVE IN
CONGRESS FROM THE STATE OF OREGON
Mr. Walden. Thank you, Madam Chair.
And good afternoon to our witnesses.
I am very pleased that the chairwoman has agreed to have
this subcommittee hearing. It is really important work. And we
have talked about this a time or two, about moving this
forward.
And while the Travel Promotion Act's funding authorization
of Brand USA, as well as the U.S. SAFE WEB Act, do not expire
until next year, I think it is really important. We know the
challenges of successfully moving legislative priorities
through both Chambers in a timely fashion. It is hard work no
matter what is going on.
This subcommittee can do great things for consumers and
does, and I want to be optimistic we can move these items as
well as other priorities, such as autonomous vehicles, and I
know our teams are working on that, and privacy also, in a
bipartisan manner.
My friend Mrs. Rodgers and myself will surely--well, I
guess they say here debate who has the better wineries in our
neighboring States.
Mrs. Rodgers. No debate.
Mr. Walden. There is no debate, that is right. But maybe we
can agree a good way to solve the argument is if travelers from
abroad come find out for themselves, and we could be there to
help referee this.
The Bureau of Economic Analysis also reinforces our
assessment of such benefits by reporting that foreign visitors
account for a disproportionate amount of U.S. travel and
tourism spending. And for those who might criticize the Brand
USA program, they should know it does not cost taxpayers one
dime.
So please direct your travelers out our way if you are
critical of it. I would like to make them aware of not just our
great wineries and breweries, but also the deepest freshwater
lake in America, Crater Lake, the Painted Hills, the Pendleton
Round-Up, ``Let'er Buck,'' and our countless mountains, rivers,
and forests.
I am sure we all have similar stories, although certainly
not as great as mine, from our districts. I mean, if you are
just down to ice cream and nothing else to talk about, I mean,
really? We have Tillamook ice cream. We could have, like, an
ice cream-off here, you know, before I leave.
Mr. Welch. No Ben & Jerry's to Mr. Walden.
Mr. Walden. I don't think I yielded. I can't imagine why I
would have.
So anyway, we all think this is a great program, I believe.
And I also want to thank Mr. Welch and Mr. Bilirakis in
sponsoring this important legislation, too.
I would also like to ask, Madam Chair, unanimous consent
that an opinion piece by Jason Brandt, who is the CEO of the
Oregon Restaurant and Lodging Association, it appeared in the
Hood River News, my hometown paper, be included in the record,
on the benefits of the program if that meets without objection.
Ms. Schakowsky. So ordered.
[The information appears at the conclusion of the hearing.]
Mr. Walden. And let me segue to another important element
in our international relationship.
Since the committee first created the SAFE WEB Act and our
former colleague, Mary Bono Mack, and our current colleague,
Mr. Butterfield, extended that program in 2012, it has been a
valuable tool for the Federal Trade Commission to cooperate
with foreign enforcement agencies.
So I appreciate that Mrs. McMorris Rodgers is leading this
effort on the extension along with Ms. Kelly. And the way this
program has served as such an important element of cooperation
in dealing with online fraud and deception perhaps serves as a
prelude to us doing another data privacy and protection bill
that establishes strong uniform standards and protections.
Maybe we can do that in the next hearing.
The SAFE WEB Act program also clearly reaffirms the
authority of the Federal Trade Commission, and that fact was
reflected in our hearing with the agency earlier this year,
which is that they know how to take on tough problems, and they
do.
As we have certainly learned in our efforts to fight
robocalls this past year, a lot of harmful traffic we are
dealing with is originating from beyond our borders. So we must
act so we are not further inundated with spam and spyware meant
to mislead us and even rob us.
[The prepared statement of Mr. Walden follows:]
Prepared Statement of Hon. Greg Walden
Good afternoon, and welcome to our witnesses. I am very
pleased that the Consumer Protection and Commerce Subcommittee
is moving these initiatives forward today.
While the Travel Promotion Act's funding authorization of
Brand USA, as well as the U.S. SAFE WEB Act, do not expire
until next year, I believe we are all familiar with the present
challenges of successfully moving legislative priorities
through both chambers in a timely fashion. This subcommittee
can do great things for consumers, and I want to be optimistic
that we can move these items as well as other priorities on
autonomous vehicles and privacy also in a bipartisan manner
soon.
My friend Ms. Rodgers and myself will surely debate who has
the better wineries in our neighboring States, but maybe we can
agree a good way to solve the argument is if travelers from
abroad come find out for themselves. The Bureau of Economic
Analysis also reinforces our assessment of such benefits by
reporting that foreign visitors account for a disproportionate
amount of US travel and tourism spending.
For those that might criticize the Brand USA program they
should know it does not cost taxpayers one dime, so please
direct your travelers out our way. I'd like to make them aware
of not just our wineries and breweries, but also beautiful
Crater Lake, the Painted Hills, the Pendleton Round-Up and our
countless mountains, rivers and forests.
I'm sure we all have similar stories, although certainly
not as great of examples as I do, from our districts. That
represents the true benefits of the Brand USA program, which is
having travelers to our largest gateway cities gain awareness
of all the wonders the rest of our lands have to offer. I thank
Mr. Welch and Mr. Bilirakis in sponsoring this important
extension. I'd also like to ask for unanimous consent that an
op-ed by Jason Brandt, CEO of the Oregon Restaurant and Lodging
Association, that appeared in the Hood River News be included
in the record on the benefits of the program.
Let me segue to another important element in our
international relationships. Since the committee first created
the SAFE WEB Act, and our former colleague Mary Bono Mack and
our current colleague Mr. Butterfield extended the program in
2012, it has been a valuable tool for the Federal Trade
Commission to cooperate with foreign enforcement agencies. I
appreciate that Ms. Rodgers is leading this effort on the
extension, along with Ms. Kelly. The way this program has
served as such an important element of cooperation in dealing
with online fraud and deception perhaps serves as a prelude to
us doing another data privacy and protection bill that
establishes strong uniform standards and protections--perhaps
we can do that for the next hearing?
The SAFE WEB program also clearly reaffirms the authority
the FTC has. That fact was reflected in our hearing with the
agency earlier this year, which is that they know how to take
on tough problems. As we have certainly learned in our efforts
to fight robocalls this past year, a lot of harmful traffic we
are dealing with is originating from beyond our borders, so we
must act so we are not further inundated with spam and spyware
meant to mislead us and even rob us.
With that, I'd like to yield my remaining time to Mr.
Bilirakis to relay opposing views on the need to visit the East
Coast of our country.
Thank you.
Mr. Walden. With that, Madam Chair, I would like to yield
my remaining time to the gentleman from Florida, Mr. Bilirakis,
to relay opposing views on the need to visit the East Coast of
the country.
Mr. Bilirakis, the time is yours if you so choose to use
it.
Mr. Bilirakis. Thank you. Thank you, Mr. Chairman. I want
to thank you. You are a true statesmen. We are definitely going
to miss you, Mr. Chairman. I appreciate you so very much.
And we have the--Mr. Welch and I have probably the best
darn title of all the legislation, I mean, there is no
question, Brand USA. And it is a wonderful bill. And again, it
is a no-brainer as far as I am concerned. But we have got to
get it through the House and the Senate as soon as possible and
get it to the President's desk.
I want to thank the leadership on both sides of the
committee for holding this hearing and for allowing me to wave
onto the subcommittee to discuss the Brand USA program and the
bipartisan bill I am coleading with my good friend and
colleague Peter Welch, H.R. 3851.
Brand USA is responsible for increasing international
visits to the U.S. by 6.6 million since 2013 and generating
$47.7 billion in economic impact, all at no cost to the
taxpayer, I think the best public-private partnership that we
have in this country. I previously worked on a bipartisan basis
to reauthorize the program with Mr. Welch, and our bill this
year will fix and extend the funding source for Brand USA
through 2027.
I want to thank our witnesses for testifying this
afternoon. I look forward to hearing from all of you. And,
again, I want to let you know that we have the number-one beach
in the United States, Clearwater Beach, just outside----
Mr. Walden. Reclaiming my time.
Mr. Bilirakis. All right.
Mr. Walden. We have a little ocean by our State, sir.
Oh, look, we are out of time. I yield back.
Ms. Schakowsky. The gentleman yields back.
The Chair would like to remind Members that, pursuant to
committee rules, all Members' written opening statements shall
be made part of the record.
And now I would like to introduce our witnesses at today's
hearing. Mr. Christopher Thompson is the president and CEO of
Brand USA. Ms. Tori Barnes is executive vice president of
public affairs and policy for U.S. Travel Association. And Mr.
Aaron Burstein is a partner at Wilkins Barker and Knauer.
And we would like to thank all of our witnesses today for
joining us. We look forward to hearing your testimony.
At this time, the Chair will recognize each witness for 5
minutes to provide an opening statement. Before we begin, I
just want to make sure that everybody understands the lighting
system here.
In front of you is a series of lights. The light will be
initially green at the start of your presentation, and the
light will turn to yellow when there is 1 minute left, and
please begin to wrap up at that time, and the light will turn
red when your time has expired.
So, Mr. Thompson, we welcome your presentation for 5
minutes.
STATEMENTS OF CHRISTOPHER L. THOMPSON, PRESIDENT AND CHIEF
EXECUTIVE OFFICER, BRAND USA; TORI EMERSON BARNES, EXECUTIVE
VICE PRESIDENT, PUBLIC AFFAIRS AND POLICY, U.S. TRAVEL
ASSOCIATION; AND AARON BURSTEIN, PARTNER, WILKINS0N BARKER
KNAUER, LLP
STATEMENT OF CHRISTOPHER L. THOMPSON
Mr. Thompson. Chairwoman Schakowsky, Ranking Member
McMorris Rodgers, members of the subcommittee, thank you for
inviting me to testify before you today. It is a great
privilege to represent Brand USA, the destination marketing
organization for the United States. I would also like to thank
each of you for your support on behalf of Brand USA, because
this body has demonstrated overwhelming support publicly for
the reauthorization of Brand USA.
As you know, Brand USA is a public-private partnership
established by the Travel Promotion Act in 2009 and
reauthorized in 2014. Our mission is to increase incremental
international visitation, spend, and market share to fuel our
Nation's economy and to improve and enhance the image of the
USA worldwide.
Brand USA inspires visitors from around the globe to visit
the USA and showcases amazing destinations, experiences, and
culture, one that you can only experience in the United States
of America. We directly influence consumers and companies in
the travel industry across international markets and through a
variety of platforms and campaigns.
One example of this type of engagement is our innovative
megafamiliarization tours. We refer to them as MegaFams. We
recruit qualified travel agents and tour operators and create
multistate itineraries that not only take them to, but through
and beyond, our gateway cities, as was stated earlier. We
provide education tools and firsthand knowledge so that they
will need to sell those destinations when they are back in
their hometowns.
Since the first MegaFam in 2013, 1,000 international travel
sellers have visited 50 States, Puerto Rico, U.S. Virgin
Islands, and our District of Columbia. Participants enjoy
experiences such as a tour of Chicago's Chess Records, the
unique atmosphere of Black Bart's Steakhouse in Flagstaff,
Arizona, and strolling the quaint parks of Newark, Delaware,
among many other places.
We do all of this because it works. According to Oxford
Economics, since 2013 Brand USA's marketing efforts have
generated 6.6 incremental international visitors. They spent
21.8 billion incremental dollars. It has generated $6.2 billion
in Federal, State, and local sales taxes. Overall economic
impact is $47.7 billion, and nearly 52,000 jobs are supported
on an annual basis.
These positive impacts benefit and affect the entirety of
the U.S. economy, well beyond the travel and tourism sector.
Roughly 50 percent of the direct, indirect, and induced spend
include good jobs, created and supported by multiple
industries, including finance, insurance, real estate, business
services, and manufacturing.
Detailed information about our campaigns, our economic
impact, and our return on investment is available for you and
your staffs in the annual report for fiscal 2018 that was
included and submitted for the record.
Brand USA is more important than ever. The United States
faces stiff competition in the global tourism marketplace due
to factors such as a strong U.S. dollar, growing investment
from competitor destinations, and the misperception among
travelers that they already know everything that there is to do
in the United States of America.
To maintain our effectiveness and not lose ground in
markets around the globe, Brand USA needs to be reauthorized
now. While the current authorization does not expire until
September 30 of 2020, destination marketing plans are developed
at least 12 months out, prior to the deployment of marketing
campaigns.
This means that Brand USA is currently planning for
campaigns that extend beyond the current fiscal year. We are
already making decisions about expenditures such as market
research, message testing, and digital asset deployment that
lay the foundation for our fiscal 2021 campaigns.
This type of long-term planning is the reason our results
have been so positive over the last 6 years. But without
clarity beyond September, it is difficult to justify these
types of expenditures.
At the same time, tour operators and travel media companies
around the world are making their investment decisions for
travel that will occur in the next year. Without confidence
that Brand USA will continue to promote the USA to consumers,
connect U.S. destinations and travel retailers and more, these
companies are far less likely to make investments in selling
the USA.
This will have a particularly acute impact for U.S.
destinations beyond the gateways, because international tour
operators and travel companies take more risk when they sell
the destinations beyond the gateways. The longer the wait, the
longer the recovery time. This will lead to a reduction in jobs
supported by international travel.
Delays in reauthorization will also impact our partners,
who are also already in their business cycle planning and
counting on Brand USA's presence in these key markets around
the world.
When Brand USA is reauthorized, we will continue to inspire
people from all across the globe who enjoy the unique
experiences that they can only enjoy in our 50 States, the five
territories, and our District of Columbia. Our efforts will
continue to power the economy, increase revenues, and create
jobs across the country.
I thank you again for each of your individual support and
for the opportunity to testify before you today. I am happy to
answer any questions you may have. Thank you very much.
[The prepared statement of Mr. Thompson follows:]
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
[Two documents submitted by Mr. Thompson, ``Annual Report:
Fiscal Year 2018, Brand USA'' and ``The Return on Investment of
Brand USA Marketing: FY 2018,'' have been retained in committee
files and also are available at https://docs.house.gov/
Committee/Calendar/ByEvent.aspx?EventID=110153.]
Ms. Schakowsky. Thank you.
And now, Ms. Barnes, you are recognized for 5 minutes.
STATEMENT OF TORI EMERSON BARNES
Ms. Barnes. Thank you. Chairwoman Schakowsky, Ranking
Member McMorris Rodgers, members of the subcommittee, good
afternoon. I am Tori Barnes, executive vice president of public
affairs and policy for the U.S. Travel Association.
I would like to thank the committee leadership, also
Chairman Pallone and Ranking Member Walden, for prioritizing
this critical issue, and I would also like to thank Congressman
Welch and Congressman Bilirakis for leading this bill.
Brand USA does all of this important work at no cost to
U.S. taxpayers, and it is absolutely critical that Congress
reauthorizes Brand USA this year.
U.S. Travel is the only association that represents all
sectors of the travel industry: hotels, airports, State and
local tourism offices, car rental companies, theme parks and
attractions, and many others. Our membership is diverse, but we
are aligned behind a focused mission: to increase travel to and
within the United States.
In 2018, spending by nearly 80 million international
visitors to the U.S. produced $256 billion in export income for
the American economy. Overseas visitors spend approximately
$4,200 per trip and stay an average of 18 days, spending money
on hotels and transportation, as well as in restaurants, retail
establishments, and more. And 74 percent of these visitors
leave with a more favorable view of the United States.
Travel is the seventh-largest industry in terms of
employment, and international visitor spending is essential to
growing the economy and the American workforce. But the United
States is rapidly losing its share of the global travel market,
falling 2 percent since 2015. That decline represents a
difference of 14 million visitors and a hit to the economy of
about $60 billion in spending and 120,000 American jobs. If
nothing is done, our market share will continue to erode and is
projected to fall below 11 percent by 2021.
This is why it is crucial for Congress to reauthorize Brand
USA this year. If Brand USA were eliminated, the United States
would be the only top 20 country destination without a national
travel promotion budget. Brand USA's proven effectiveness is
jeopardized by uncertainty over its future. Budgets need to be
written and campaigns need to be planned, none of which can
effectively be done unless Brand USA is reauthorized now.
Quite simply, this is a program that works. Brand USA keeps
the United States competitive in the global race to attract
visitors and prevents the decline in market share from being
worse.
Over the past 6 years, Brand USA's marketing has brought
6.6 million international visitors to the United States, who
created $47.7 billion in economic impact.
Brand USA brings these visitors through and beyond the U.S.
gateway cities, ensuring all pockets of America reap the
economic benefits of international inbound travel. Some of
these partnerships around the country include Meet Atlantic
City in New Jersey, Visit Spokane in Washington, Choose
Chicago, and Travel Oregon.
Brand USA is also essential to improving the U.S. trade
balance. Travel is America's second-largest export. While the
overall U.S. economy ran a trade deficit in 2018, U.S. travel
exports generated a $69 billion trade surplus. Without this
surplus, the United States' overall trade deficit would have
been 11 percent higher.
It must be noted that Brand USA does not cost American
taxpayers a dime. Other countries with whom we directly compete
for tourism dollars, have large taxpayer-funded promotion
budgets, but Brand USA instead is funded through a small fee
charged to international visitors approved for travel here
under the Visa Waiver Program, plus matching contributions from
the American private sector.
Earlier this year, more than 600 travel industry
organizations representing all 50 States signed a letter in
support of Brand USA to Speaker Pelosi and Leader McCarthy. And
of course, Brand USA was reauthorized once, in 2014, with
overwhelming bipartisan support.
The time is now. The future of the United States' ability
to welcome and attract international visitors as one collective
voice and the health of the overall economy depend on it.
I would like to thank once again the committee for
recognizing the critical need to reauthorize Brand USA as soon
as possible. We look forward to working with you to secure the
future of this valuable program, and I look forward to your
questions.
[The prepared statement of Ms. Barnes follows:]
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Ms. Schakowsky. Thank you.
Mr. Burstein, you are recognized for 5 minutes.
STATEMENT OF AARON BURSTEIN
Mr. Burstein. Thank you. Chairwoman Schakowsky, Ranking
Member McMorris Rodgers, and members of the subcommittee, thank
you for the opportunity to testify today. My name is Aaron
Burstein, and I am a partner at Wilkinson Barker Knauer in
Washington, DC.
Before joining Wilkinson Barker in 2016, I was a legal
adviser on consumer protection matters to former FTC
Commissioner Julie Brill. My perspective on the U.S. SAFE WEB
Act is informed by my experiences at the FTC and in private
practice. However, my testimony represents only my own views
and not those of Wilkinson Barker or any of its clients.
The SAFE WEB Act provides the FTC with important tools to
protect U.S. consumers and enforce standards that responsible
companies strive to meet. It bolsters the FTC's ability to work
with its foreign counterparts and supports the FTC's
international leadership and standing.
Reauthorizing SAFE WEB would keep these essential tools in
place and send a strong signal of support for the FTC's
consumer protection mission and its role as an international
leader in this arena.
I support reauthorization through H.R. 4779, which would
leave unchanged the core provisions of the SAFE WEB Act that
were enacted in 2006 and reauthorized in 2012. I would like to
highlight a few of the benefits of those provisions.
First, SAFE WEB provides the FTC with a clear grant of
extraterritorial authority. A core purpose of SAFE WEB is to
help protect U.S. consumers from cross-border scams and fraud
in a globalized and networked world.
Consistent with this purpose, SAFE WEB expressly allows the
FTC to prosecute overseas conduct that foreseeably harms
American consumers. The act also expressly allows the FTC to
take action against companies that operate in the U.S. and
cause harm overseas.
Second, SAFE WEB has allowed the FTC to build an impressive
record of assisting its foreign counterparts in their
investigations. As we heard, according to FTC data from March
2019, the FTC has issued more than 115 administrative subpoenas
and responded to more than 130 information-sharing requests
under SAFE WEB.
SAFE WEB requires the FTC to carefully evaluate these
assistance requests under a variety of factors. For example,
the FTC has to consider whether the requesting agency will
reciprocate when the FTC makes its own requests. This helps to
ensure that assistance is done carefully and is not a one-way
street.
This leads me to a third benefit of the SAFE WEB Act, which
is the meaningful assistance the FTC obtains from foreign law
enforcement agencies. In the past few years, the FTC has
credited the act with securing assistance and cooperation in
cases involving large-scale data breaches, children's privacy
violations, and a sweepstakes scam that led the FTC to recover
over $30 million.
Finally, the SAFE WEB Act helps the FTC build relationships
with foreign law enforcement agencies through staff exchanges.
The officials the FTC hosts as international fellows or interns
return to their home countries with a better understanding of
the laws the FTC enforces, how it conducts investigations, and
how it operates as an agency.
These visitors also develop personal contacts within the
agency, and these relationships can bolster trust, promote
future enforcement cooperation, and facilitate communications
between the FTC and its counterparts.
All of these outcomes benefit U.S. companies and consumers.
In conclusion, the FTC has used its SAFE WEB Act
effectively in its own investigations and to assist its
counterparts abroad.
Thank you, and I look forward to your questions.
[The prepared statement of Mr. Burstein follows:]
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Ms. Schakowsky. Thank you so much.
We have concluded now witness opening statements. At this
time, we will move to Member questions. Each Member will have 5
minutes to ask questions of our witnesses, and I am going to
start by recognizing myself for 5 minutes.
You are going to hear a lot of touting of our hometowns,
and that is all to the good.
For the third consecutive year, Conde Nast Traveler has
voted--the readers have voted Chicago as the, quote, ``best
large city in the U.S. to visit,'' unquote. Pace Magazine
praises Chicago's theater as, quote, ``one of the most thriving
theater scenes on the planet,'' unquote. And Bon Appetit
magazine has dubbed Chicago as ``America's most exciting city
to eat in right now,'' unquote. And of course, Chicago is also
home to the largest science museum in the Western Hemisphere,
champion sports teams, and the famous Art Institute of Chicago.
I have to express one gripe, however. Yesterday my city was
maligned to some extent. The President of the United States was
there, and Chicago, he said, quote, ``is embarrassing to us as
a Nation,'' unquote, and that, quote, ``Afghanistan is a safer
place by comparison than Chicago.'' Not helpful.
But I wanted to ask you, Mr. Thompson, Chicago has a
thriving tourism market, despite some other comments, and
everything is in place to support even more tourism. How can
Chicago specifically benefit from its partnership with Brand
USA? We do have Choose Chicago--as I think you mentioned, Ms.
Barnes, or one of you--that partners with Brand USA. But what
recommendations do you have for cities in general to maximize
the tourism?
Mr. Thompson. So, Madam Chairwoman, this might be the
answer to each and every one of your similar questions about
your respective hometowns.
The foundation of our marketing and promotion efforts
really promote--and by law we are required to promote--the
entirety of the USA, all 50 States, five territories, and the
District of Columbia. So our marketing promotion campaigns
through our own assets do that.
But I am happy to report that both Choose Chicago and the
Illinois Office of Tourism are some of our most active
partners. So, beyond our foundational marketing campaigns, we
have cooperative marketing across many channels, mostly on the
digital platforms and in the social media, and both of those
organizations, on behalf of the city and the State, have been
very, very active.
I don't have to tell their stories because on my best day I
couldn't tell it as well as they could do. What we have to do
is find ways to magnify their stories, and that is the way that
we add value to what is being done at the local and State
level.
So I am proud to say that I am not sure what else more they
can do other than what they have been doing, and it is our job
to continue to bring forward programs and marketing
opportunities that they see value in.
Ms. Schakowsky. Thank you.
So people from all over the world are visiting the United
States, and today the top five countries for international
tourism to the U.S. are Canada, Mexico, the United Kingdom,
Japan, and China. However, there are certain countries where
you probably see tremendous potential, even more than tourists
right now who are visiting the U.S.
So, Mr. Thompson, what are some countries that you view as
emerging markets for inbound tourism to the United States?
Mr. Thompson. Well, you mentioned four of our most stable
markets, the two we share a border with and the U.K. and Japan.
China is a market that has climbed the top 10 in a rapid pace.
It is the largest outbound tourism market in the world, 140
million Chinese travel outside the borders every year. The U.S.
is the most aspirational destination for our Chinese visitors.
So as lift improves, as access improves, our job is to
continue to tell the stories that they actually know, which are
many of the gateway cities and opportunities through those
gateways, and more importantly, what they don't know, because
they are very curious visitors and we expect them to grow in
numbers.
Ms. Schakowsky. And I assume you are trying to promote
that.
Mr. Thompson. Oh, absolutely. We have four offices in
China.
Ms. Schakowsky. Great.
I now yield to the gentleman, Mr. Bucshon, who is the
acting vice chair of this committee right now.
Mr. Bucshon. Well, thank you very much.
In a digital age where the world is simply a click away,
bad actors often try to take advantage of international borders
to defraud consumers. We should ensure that the FTC has the
tools to work with international law enforcement to bring these
bad actors to justice.
That is why I am proud to colead the U.S. SAFE WEB
Extension Act with Ranking Member McMorris Rodgers, Chairwoman
Schakowsky, and Congresswoman Kelly, which reauthorizes the
U.S. SAFE WEB Act of 2006.
Mr. Burstein, you mentioned that the core purpose of the
SAFE WEB Act was to affirm the FTC extraterritorial authority.
Can you provide examples of how the foreseeable and materiality
standard has protected consumers in the United States?
Mr. Burstein. Certainly. This aspect of the SAFE WEB Act
has come up in a couple of recent cases. And just to set the
frame in a little bit larger perspective, part of the concern
that would arise from the expiration of SAFE WEB Act authority
is that, without that express authority in place, FTC
defendants might have greater incentive to litigate the FTC's
jurisdiction over them. So having it in place makes bringing
cases a little bit easier for the FTC.
That has come up in a couple of cases recently. One example
would be the case against Triangle Media, which involved an
operation that had a foreign component. Some of it was based in
Bulgaria. And part of the defense against the FTC's action on
the part of one of the defendants was that those operations
were walled-off foreign channels entirely. The FTC presented
evidence that that wasn't the case and that there was a
material connection of sorts to the U.S. and was able to defeat
that defense.
Mr. Bucshon. Sounds great.
Mr. Thompson, Indiana offers many great experiences for
tourists, such as a chance to ride in the Spirit of Jasper
Train, engulf themselves in the holidays in Santa Claus,
Indiana.
By the way, if you have children and they send a letter to
Santa Claus, Santa Claus, Indiana, 47579, you will get a
personal response. They have a whole team of people that work
with Santa Claus to respond back to every letter, just so you
know. And if you send a box of Christmas cards, which we get
from all over the world, they will be personally stamped with a
stamp in Santa Claus, Indiana, with a logo that is designed by
local schoolchildren every year. So I just want to put that
plug in.
By the way, I love Chicago. I went to med school in
Chicago. My son lives there.
Ms. Schakowsky. And I have a house in Indiana.
Mr. Bucshon. But in all seriousness, Mr. Thompson, can you
expand on how Brand USA works with States like Indiana to help
promote tourism?
Mr. Thompson. Congressman, as I said earlier, I don't have
to tell the Indiana story because, as you well do and as they
do at the State office, they tell the story very well. But when
we are able to take some of our dollars, match them with their
dollars, and in many cases, we have city-State pairings, where
the cities will actually partner with the States, then you take
one plus one plus one, equaling four and five and six, so that
we are all able to leverage our resources beyond what we would
be able to do on our own. And I know in many cases that has
proved to be very successful for many of the States.
Mr. Bucshon. Great.
In my remaining time, Mr. Burstein, can you describe how
the SAFE WEB Act provides accountability measures for both the
Commission and foreign law enforcement agencies?
Mr. Burstein. I think one of the key features of SAFE WEB
along those lines is that, when the FTC provides information to
a foreign law enforcement agency, it requires certain
certifications that the receiving agency will use it only for
appropriate law enforcement purposes and will provide
confidentiality protections. And those obligations also apply
to information that the FTC receives from its overseas
counterparts.
Mr. Bucshon. Great. I appreciate that.
And by the way, you can also hike in Hoosier National
Forest. I just wanted to throw that in.
With that, Madam Chairwoman, I yield back.
Ms. Schakowsky. The gentleman yields back.
And I now recognize Congresswoman Castor for 5 minutes.
Ms. Castor. Well, thank you, Madam Chair, for organizing
this hearing.
Thanks to our witnesses today.
I want to thank my good friends and colleagues Peter Welch
and Gus Bilirakis for moving this bill. I am very pleased to be
a cosponsor.
Brand USA is working, and we really need to move this bill
out of committee expeditiously and get it passed. I hear all of
the reasons why that you have categorized for us. But it is so
important in this big, diverse country that we have a focal
point like Brand USA that can combine efforts and be as
efficient as possible with the dollars--not the tax dollars,
but the foreign dollars that come to help organize private-
sector business partners with our public institutions and come
up with a strategy to market all of the beautiful places and
destinations across the United States.
And this is who we are in the State of Florida. The Tampa
Bay area, we are the hip urban heart of Florida's Gulf Coast.
The hospitality there is as warm as the weather. Gus Bilirakis
is absolutely right. Let the record reflect that the beaches of
the Gulf Coast are the best in the world. In fact, Dr. Beach,
when he announced the best beaches of 2019 this year, Florida
was the only State with 2 of those beaches in the top 10, but
they are all fabulous. I know Congressman Soto is going to
second that motion.
But I am concerned that the international traveler numbers
are--I think, Ms. Barnes, you said the market has been falling
since 2014, 2 percent, down 2 percent. That is what we see in
the State of Florida, a lot of domestic travelers that--we love
them. They all come to Florida to enjoy their vacations. But we
want the international travelers back. They are important to
us. As you said, they spend more money. They often stay longer.
What are the trends? Mr. Thompson, you know the State of
Florida very well, and I appreciate all of your years of
service to our State. What is going on, Mr. Thompson, Ms.
Barnes, on the international traveler numbers? What should we
understand so that we can make sure that we are doing
everything to attract those visitors?
Mr. Thompson. Congresswoman, I was going to say, you know
my home State is Florida, and I have a long track record with
Visit Florida, so I know much of what you were saying about
your area very well.
I will say that, although the numbers have slowed, the near
80 million visitors in 2018 and the over a quarter-trillion
dollars in spend were record numbers. So we are still seeing
increased visitation, just at a slower pace.
You know, much of the reason why things slow has as much to
do with the strength of the dollar, has much to do with, as I
said earlier, competing destinations, and a lot to do with what
people are feeling and experiencing back in their points of
origin.
So we have consumer sentiment that we track in 10 markets
every month, so we have a good pulse about what people are
thinking and what their intent to travel to the United States
is in the next couple years, and we use that to inform a lot of
our decisions.
And I would say that is really the urgency of our request
to be reauthorized now as opposed to later is a lot of our
success that we have had over the last 6 years has really been
dependent on that ability to plan 12 to 18 months out and to
have the resources that informs those decisions so that we can
stay on top of any issues that might be affecting people's
ability or intent to travel.
Ms. Barnes. And thank you for the question.
I think I would add to that as well that we are seeing this
global travel boom. Global travel is up about 5 to 7 percent.
So, as Mr. Thompson noted, we are still continuing to see
growth here in the U.S., but it could be that much more. We are
losing the market share, really. Countries like Spain and
Australia and Canada are beating us at this game, or have the
potential to beat us at this game if we don't have Brand USA.
So Brand USA, we think, is really what sustained this
continued growth, and the urgency, as Mr. Thompson mentioned,
is really around that certainty moving forward.
As I noted in my opening statement, if Brand USA were to go
away the U.S. would be the only 1 of the top 20 destinations to
have no organized marketing arm, and that would be a real
detriment to the economy. And quite frankly, because 74 percent
of folks leave the U.S. with a more favorable view, it would
also be a negative diplomatic impact as well.
Ms. Castor. Well, thank you very much.
And I imagine, Mr. Bucshon, if the U.S. Travel Association
and Brand USA was going to write to Santa Claus, they would
probably ask for swift passage of this bill out of committee
and the floor, but also probably for all of us to get busy on
an infrastructure package to help repair our airports, our
roads, and make travel around the United States of America a
little more pleasurable.
So thank you very much. I yield back.
Ms. Schakowsky. The gentlelady yields back.
And now I recognize Mr. Latta for 5 minutes.
Mr. Latta. Well, thank you very much, Madam Chair.
And to our witnesses, thanks very much for being here.
Before I do start, I would like to tell my good friend, the
gentleman from Indiana, that I happen to have Rudolph, Ohio.
And every year at Rudolph, they have tens of thousands of
letters that come in that they will stamp with their famous
Rudolph the Red-Nosed Reindeer postmark, so you can have that
done in my district.
So thank you very much again, Madam Chair, and thanks again
to our witnesses. The first bill we are hearing in this
legislative hearing today is H.R. 3851, would reauthorize the
Brand USA program so that public and private resources will
continue to be leveraged to promote the United States as a
tourist attraction for international visitors.
According to Ohio tourism, 46 million people came to Ohio
in 2017, spending $19 billion and contributing $3.1 billion in
tax revenue. Ohio has been my home for my entire life, and I
believe it has much to offer to our visitors from inside the
United States and from around the globe who are looking for new
and memorable travel experiences.
For example, every year in my hometown of Bowling Green, we
host the National Tractor Pulling Championships, which draws
thousands of visitors to Bowling Green from all over the
country and the world for a 3-day event, and it also ends up
contributing greatly to our local economy.
In addition to events like the tractor pull, northwest Ohio
welcomes millions of visitors to the world-class Toledo Zoo and
Aquarium, Lake Erie shores, the historic Sauder Village, sports
teams like the Toledo Mud Hens, the roller coaster capital of
the world at Cedar Point, and the internationally renowned
Toledo Museum of Art.
I have heard from local business leaders that Brand USA has
helped bring visitors to see these attractions and patronize
local restaurants, hotels, and shops. Because of the positive
economic benefits of this program--which doesn't, again, cost
the taxpayer a dime--I am supporting its reauthorization.
And, Ms. Barnes, if I could start my questions with you. In
your testimony, you speak of bringing visitors to parts of the
United States beyond those gateway cities. As I said earlier,
we have a lot to offer in Ohio. What is Brand USA doing to
promote the Midwest and the Great Lakes States as a tourist
destination for international visitors?
Ms. Barnes. Thank you.
So I think Mr. Thompson can probably best answer this
question, but I would note that part of Brand USA's
requirements are that they actually go well beyond the gateways
and help to promote all of the U.S.
So I know that they are doing a lot of good work in Ohio. I
was recently there for a big travel event, and your State was
wonderful, a wonderful host. So if I may, Mr. Thompson might be
able to best address this specific region.
Mr. Latta. And also, Mr. Thompson, if you could also talk
about some of the indirect impacts that the Brand USA has on
our local economies back home along with that.
Mr. Thompson. Congressman, I appreciate your comments. As I
listen to all of you promoting your destinations, we have a
campaign called Ask a Local, and we always say that you can
know the heart and soul of a community if you know what the
locals know. So I think if I just take this recording and send
it out, you know, you guys are as good promoters as any of us.
So I would reinforce what we said earlier as far as our
core campaigns, which is our own assets that we promote through
12 major markets around the world, promote the entirety of the
United States, 50 States, five territories, and the District of
Columbia.
We layer in on top of that some streamed marketing
campaigns. And I know, for example, we have a campaign that
recently launched called United Storage, where we are sending
content creation labs, real-time content creation labs, around
the United States. And that campaign recently visited Cleveland
and focused on what Cleveland has to offer and pushed it out on
digital and social and other marketing platforms.
I would also remind everyone that included in our testimony
on the record is our annual report for 2018, and most every--
all of the accountability that we have as it relates to the
overall promotion and what we might have done in specific
destinations is listed in there. So I don't have all of that
committed to memory and certainly would refer to that as a
resource to be able to do, and happy to provide after the fact
any more detail.
Mr. Latta. Well, thank you very much.
Madam Chair, I will yield back the balance of my time.
Ms. Schakowsky. Would you want to ask permission to put
that in the record, what was just mentioned by Mr. Thompson?
Mr. Latta. Absolutely.
Ms. Schakowsky. So ordered.
Mr. Latta. Ask unanimous consent.
Ms. Schakowsky. So ordered.
Ms. Schakowsky. And now Mr. O'Halleran is recognized for 5
minutes.
Mr. O'Halleran. Thank you, Madam Chairwoman.
I am not going to start off with a long list of shameless
promotions that the other districts have talked about. I am
sorry. I am going to go back to where I started. I wanted to
get that in early.
I am glad that we are here having serious discussions about
reauthorizing two very important pieces of legislation, and I
want to thank the witnesses for their time today.
First, I am proud to be a cosponsor of the legislation that
would reauthorize Brand USA. It is critical that we pass this
legislation by the end of the year to ensure that its operation
and partnerships can continue well into the future.
Brand USA has tremendous impacts on the First District of
Arizona. We attract tourists from all over the world, millions
of them. In 2018, domestic and international travel to my
district generated $2.5 billion in economic impact and
supported over 18,000 jobs. That is a pretty good return by
brand on investment, I would think. The travel industry is the
fourth-largest employer, and there may be partnerships between
Brand USA and organizations in my district.
Now getting back to the important issue of bragging about
our districts. I would like to have anybody want to come out to
the district that is larger than the State of Illinois. I grew
up in Illinois, but----
Ms. Schakowsky. A little respect.
Mr. O'Halleran. Yes. I am sorry. But come to the Colorado
Plateau or any of the 22 national parks and monuments, the Salt
River Canyon, all of the wonderful water lands that we have
that are contained in the 6 national forests that are within
the district, Lake Powell, the 12 Native American Tribes in the
district, heritage of the southwestern United States, and I
almost forgot the Grand Canyon and Sedona, which are close to
my heart also.
Thank you very much. I yield.
Ms. Schakowsky. The gentleman yields back.
And next is Mr. Guthrie, who is now the----
Mr. Guthrie. Acting ranking member.
Ms. Schakowsky [continuing]. Acting ranking member.
Mr. Guthrie. Thank you very much. I appreciate it very
much.
And we were talking earlier, I have got to go through my
list. The Bluegrass Museum in Owensboro--you did a video
there--which is the birthplace of one of America's forms of
music, totally American, was born right next to my district,
used to be my district, Jerusalem Ridge, with Bill Monroe.
Abraham Lincoln. I know my friend from Illinois claims
Abraham Lincoln. That is where he became an adult, but he was
formed on the hardscrabble land of Kentucky, born, and then
Hardin County and now LaRue County. Drank his first drink of
water out of Sinking Creek. And then he learned his chores as a
boy at the boyhood home that you can visit in Hardin.
In LaRue County, Kentucky, Mammoth Cave National Park, one
of the great cave systems of the world, is right near where I
live. Unfortunately, we have new caves open up. We try to keep
our water away from our houses so we don't become part of
Mammoth Cave where we live.
And then all the scenic rivers and small towns, of course
the gold vault at Fort Knox, which you can only see from the
road, but you can see it just like the movie ``Goldfinger.''
And as I got to know Ms. Barnes when I first came to town,
she used to represent another business that manufactures the
great American sports car, Corvettes, in my hometown of Bowling
Green. So if you bring a little cash, you can drive a Corvette
away from my home district. They are worth every penny of it,
that is what they are. So moving forward.
But I want to get to a couple of questions, one for Mr.
Thompson and Ms. Barnes. And my friend was talking about her
great city of Chicago, and I agree, it is a great city, and I
love the great museums and so forth. But we want people
sometimes to get out of the big cities and see Kentucky and see
other areas off the beaten path because, you know, when we go
to some of those countries overseas in Europe, you want to see
the great cities and the great cathedrals and things. But
sometimes when you find that little surprising little town if
you get off the beaten path, it really is what you come back
and talk about.
And so what kind of systems or things does Brand USA do to
try to get people out of the gateway cities--which I am not
dismissing them at all--but into the places like the Bourbon
Trail and the bluegrass and things like that?
Mr. Thompson. So, Congressman, aside from the plateau or
the foundation of promotion that as a result of the internet
and through our own channels promotes the entirety of the
United States, we actually--through our campaigns that are
otherwise cooperative marketing--we actually do a very
calculated effort to make sure that we are covering the
entirety of the United States.
For example, you mentioned the Hear the Music campaign for
Owensboro, Kentucky. I think a lot of people would not have
known that Owensboro, Kentucky, was the home to Bluegrass Music
Museum and the Hall of Fame there. And I think that is a great
example. Of all the participants in that campaign, that
Owensboro, Kentucky, video is actually indexing as high as any.
Mr. Guthrie. That is great.
Mr. Thompson. So that just goes to prove that many of our
visitors know our gateway cities, they are familiar with our
gateway cities.
And I think that is the strength of the USA as a
destination, that in times when people might be challenged,
even with the U.S. dollar, that we have a variety of options
even around gateways that give people tremendous opportunity so
that they can change their travel plans and actually stay in
and around the gateway, and within 4 or 5 hours of a gateway
there are things that they have no idea that existed. So we
take very seriously the charge of promoting beyond the
gateways.
Mr. Guthrie. Thanks.
Ms. Barnes. And I would just add that the average
international traveler spends about $4,200 when they come to
the U.S. Travelers from China might spend upwards of $7,000.
So, as Mr. Thompson noted, when they are staying in and around
a gateway city, they also stay, on average, for 18 days, and so
that allows for them to go and experience different
opportunities.
And I think one of the things that Brand USA has really
done well, to highlight lately, in particular, is the desire of
the traveler to participate in the authentic American
experience, which obviously goes well beyond just our cities
but to destinations within rural and suburban areas alike. So
those international dollars are such a huge benefit to the
economy. And when those folks come here and stay for that long
period of time, it really helps them to experience the real
America.
Mr. Guthrie. Thank you.
And I will transition. I know that you say a lot of it is
through internet trafficking--or internet traffic, and so I
wanted to talk to Mr. Burstein about the SAFE WEB Act. So we
have another bill before us. It provides the Federal Trade
Commission--so can you explain what tools the USA SAFE WEB Act
provides the FTC that it would not otherwise have, and how does
it use the tools?
Mr. Burstein. Sure. Just briefly, there are four main areas
of tools that SAFE WEB Act provides. First is a clear grant of
authority to go after frauds and other types of consumer
protection harms that occur overseas. The second is the ability
to assist foreign law enforcement investigations that may
involve conduct in the United States or that harm consumers in
the U.S. The third is that the FTC can share information that
it would otherwise be required to keep confidential or be
prevented from sharing with foreign law enforcement partners.
And then the fourth is that it allows for staff exchanges
primarily so that foreign law enforcement officials can come to
the U.S., get better acquainted with the FTC, build strong
relationships, and provide a stronger foundation for future
cooperation.
Mr. Guthrie. Thank you.
My time has expired. I yield back.
Ms. Schakowsky. I didn't hear you say that when Mr. Welch
brings ice cream, that you would provide a bourbon chaser. I
was listening for that.
Voice. Now you are talking.
Ms. Schakowsky. Yes, yes.
Mr. Guthrie. I want the maple syrup.
Ms. Schakowsky. And, Congressman Kelly, you are recognized
for 5 minutes.
Ms. Kelly. Thank you so much, Madam Chair.
I just want to remind my colleague from Kentucky that, yes,
Lincoln was born in Kentucky, but his library is in--his museum
is in Springfield, Illinois. But I do agree with him, as far as
the big city. My district is urban, suburban, and rural, and
most is out of Chicago, and I want to make sure that we do as
much for those areas. And we do have--the chairwoman talked
about all the virtues of Chicago, so I won't double down, but
we have Olympia Fields Country Club, which is in the top 50 in
the country, where the PGA has visited, and I am very proud
that that is in my district. So we want them to keep on coming.
So--and thank you for your testimony.
I did want to turn to the SAFE WEB Act. Can you talk about
what are some examples of how the U.S. and Canada have
cooperated to the benefit of American consumers, since they
modeled legislation after the SAFE WEB Act?
Mr. Burstein. Sure. The FTC has cited cooperation with a
variety of Canadian law enforcement agencies as being helpful
in FTC investigations. Some of the places that that has come up
recently include a children's privacy case involving the
company V-Tech, that sold connected toys, wasn't obtaining--
allegedly, wasn't obtaining--appropriate consent to collect
information from children. The FTC apparently worked with the
Canadian Office of the Privacy Commissioner, which conducted
its own investigation and released its own findings.
Also, another recent case involving Canadian assistance or
cooperation was the Ashley Madison case, a breach of a dating
website, involving millions of users of that site. There were
reportedly users in some 46 countries, including Canada, and
again, the FTC had obtained assistance from Canada to collect
evidence in that case.
Ms. Kelly. So when you talk about the U.S. SAFE WEB Act, it
doesn't just protect consumers from traditional cases of fraud
and deception, but as you said, also threats to privacy and
children's privacy also?
Mr. Burstein. That is correct.
Ms. Kelly. And then also, can you discuss some of the types
of cross-border fraud against U.S. consumers that you see
originating from different countries? And are there some
countries that are tougher to deal with or we see more fraud
originating from?
Mr. Burstein. From outside the FTC, which is where I
currently sit, it is a little bit hard to really get a lot of
insight into where specific things are coming from or where
large trends come from. But, certainly, based on the cases the
FTC brings, as well as some of what I hear in my practice
currently, things like tech support scams remain a very large
problem. I certainly hear from my father that he receives ads
or popups indicating that he has some sort of problem and needs
to employ the services of the company behind the advertiser.
Those often have a cross-border component to them. And then
also, things like even U.S.-mail-based scams promoting prizes
that may not really exist as well as sweepstakes and those
sorts of schemes can involve actors residing overseas or moving
money around and keeping assets offshore.
So those are all things that SAFE WEB gives the FTC the
authority to work with foreign law enforcement agencies to
investigate as well as to prosecute, if it is appropriate, the
parties that are involved in the conduct.
Ms. Kelly. Do you think there are certain groups that
these, whoever, go after more than others, or is it equal
across the board, or is it like seniors or children?
Mr. Burstein. That is a great question. You know, these
schemes can affect anyone. One of the recent cases that the FTC
brought that involved SAFE WEB powers did involve, I believe,
targeting of elderly consumers. So there certainly are
vulnerable categories of consumers who can be targeted.
Ms. Kelly. Thank you.
And I want to yield some of my time to my colleague from
Arizona.
Mr. O'Halleran. I thank you.
Just wanted to make a correction. It is the Colorado River,
not Plateau. And it is the Coconino Plateau, and I should have
fixed that in my notes. Thank you very much.
And I yield.
Ms. Schakowsky. We will get that correction in the record
now.
Who is it? Oh, Mr. Walden is back.
Mr. Walden. I am back.
Ms. Schakowsky. And I welcome your questioning for 5
minutes.
Mr. Walden. Thank you. Thank you, Madam Chair. And thanks
again to our panel.
Ms. Barnes, you got some explaining to do. Can you explain
how Brand USA helps drive international visitors to parts of
Oregon they may not otherwise hear about? I stayed up all night
working on that one. And then I am going to ask you about
whether you think Oregon wine is better than, say, Washington
wine--but, no, I won't put you in that spot. Because we know
the answer.
Ms. Barnes. Thank you for the question, and the Oregon wine
is quite good. I like that, thank you.
You know, Brand USA really goes well beyond the gateways in
their efforts, in what they do to market all of the United
States as they are working throughout the world. And I think,
as I noted previously, we have the opportunity here to really
increase our market share. We are losing out to other countries
that are doing a lot to try to gain the travelers that would
otherwise come here. And without Brand USA we really would be
hamstrung. We would be, without Brand USA, one of the top--the
only one of the top 20 destinations that has no marketing arm.
So reauthorization is critical. But Mr. Thompson probably can
get more specific on exactly what is happening in Oregon.
Mr. Walden. Thank you.
Mr. Thompson. So, Congressman, as I said before, by law we
are required to promote all 50 States, five territories, the
District of Columbia, not only to, but through and beyond the
gateways, and we are also, by law, responsible for promoting
both urban and rural destinations. With that kind of charge and
a lot of it being focused on geography, we don't really focus
on geography. We focus on lifestyle interests. So in doing
that, and particularly in your case, as you were referencing,
people that are coming for a wine experience, certainly Oregon
has a great opportunity to tell a great story about the wine
experience that can be had there. And so on those platforms,
where that storytelling is being told, Oregon is a prominent
part of the story.
Mr. Walden. Yep. And we got great breweries too. It is not
just about the alcohol, but we have great food too and farm-to-
table. It is really pretty cool what is happening in sort of
the ecoterrorism world--ecoterrorism--ecotourism world. Yes,
the other is not really cool. But ecotourism world. We see that
a lot too and everything else out there.
Mr. Burstein, robocalls, I know the FTC has been involved
in a lot of different international cooperation issues and all,
and I am just curious, this committee, at its larger level, has
done a lot of work together in a bipartisan way to try and shut
down these illegal calls that are often made from overseas.
What guidance can you give us? What impact do you see? What can
we do more to lessen the burden of these things?
Mr. Burstein. Well, as far as robocalls specifically go, I
don't have any recommendations right now, except to point to
the SAFE WEB Act and what it does generally for the FTC's
ability to cooperate with international partners.
Mr. Walden. Yes.
Mr. Burstein. All of the tools that it provides are useful
with respect to international robocall schemes, whether it is
working with law enforcement agencies abroad, getting
information from them or, you know, helping them obtain
evidence from the United States that might be useful to shut
down operations.
Mr. Walden. Yes, I guess that is kind of what I am looking
for, is how do we build on those international partnerships.
Because what we find is this stuff doesn't stop at the water's
edge, it keeps going. And I know there are scams in the hotel
lodging industry as well where there are third-party operators
alleging to be XYZ Hotel, and turns out it was a total fraud,
and the guest shows up and--I actually was at a hotel in my
district and overheard one of these conversations, somebody at
the desk talking--you know, a guest thought they were all
signed up, and it is like, nope, and they were a victim of a
fraud. And I think we are all trying to figure out how do we
stop that as we encourage tourism.
So, Madam Chair, I don't have anything else. Thanks for
having this hearing. This is really an important set of issues
we hopefully will move forward on soon and get them across the
finish line. So with that, I yield back.
Ms. Schakowsky. The gentleman yields back.
And now I recognize Congresswoman Matsui for 5 minutes.
Ms. Matsui. Thank you very much, Madam Chair.
And it seems like we are having a competition here about
which got the best breweries and wineries and things like that,
but, you know, I have to hand it to Brand USA, you seem to keep
it all kind of balanced out.
Because tourism in California in particular is a major
economic driver, in my district of Sacramento alone, the travel
industry earned $4.1 billion in spending and supported more
than 31,000 jobs. And Visit California is a founding partner of
Brand USA, and this partnership has been really vital to our
State's economy. And as tourism in California continues to
grow, I want new international tourists coming to experience my
district of Sacramento's wineries, museums, and restaurants.
Now, I have to compliment Brand USA, because we always hear
about the gateway cities like Los Angeles and New York, but the
midsize cities like Sacramento really do appreciate your
emphasis, in a sense, attention to these cities, because we
have a growing economy with interesting types of tourist
attractions.
I want to talk about the international competition. Since
it was authorized, Brand USA has helped the U.S. stay relevant
in an increasingly competitive international tourism
marketplace. While tourism in the United States still makes a
significant contribution to the economy, it has been declining
recently. The United States' share of the international tourism
marketplace dropped from 13.7 percent in 2015 to just 11.7
percent in 2018. Brand USA's campaigns have supported nearly
52,000 incremental jobs per year and helped combat this drop.
Ms. Barnes, what risk do you see associated with failing to
promptly reauthorize Brand USA in terms of employment in the
travel and travel-related industries?
Ms. Barnes. Sure. So, in the travel industry, it is a top-
10 employer in the United States, and without Brand USA, we
would be at a real risk of losing not only the international
visitors that spend on average $4,200, but we would be putting
ourselves in a position, vis-a-vis the market share with other
countries, of being the only one of the top 20 destinations
that would have no marketing arm. And with $47.7 billion of
economic input as a result of Brand USA and the 52,000
incremental jobs each year that you have noted, it would really
be bad for the economy.
Furthermore, 74 percent of international travelers, when
they come to the U.S., leave with a more favorable view of the
U.S. And so the diplomacy value is also very significant. So it
would be negative from an economic perspective, and it would be
negative from a diplomatic perspective. So we need Brand USA to
continue to welcome international visitors here.
Ms. Matsui. OK, certainly. Now, Brand USA plays a critical
role in marketing the U.S. as a travel destination to
international travelers, but marketing is only part of the
solution to increase international tourism spending in the
United States. International visitors often struggle with the
long Customs lines at airports, and we know that some are so
concerned about uncertainty and wait times that they choose not
to visit at all. These delays can really stifle tourism and
hamper economic growth.
Mr. Thompson, can you describe Brand USA's role in
communicating U.S. visa and entry policies to international
travelers?
Mr. Thompson. Yes, Congresswoman. Aside from the legal
responsibility on the promotion side, we are also responsible
for communicating accurate and timely travel policy. So in many
cases, we are dealing with perceptions versus reality of what
is actually happening versus what people are perceived that is
happening. And that has to do with people's abilities to get
visas. Certainly, there are isolated instances of longer wait
times, but for the most part, the wait times have come down
pretty drastically over the last couple of years.
As it relates to how we welcome everybody, certainly there
are isolated instances of long lines, but again, those are, in
most part, the exceptions to the rule, and our job is to make
sure that we separate the perception from the reality and make
sure people understand how easy it is to get here and how easy
it is still to get a visa.
Ms. Matsui. OK. I was wondering about this, because you all
have been very successful on marketing yourself and our
country, but how does Brand USA's funding structure differ from
other countries'?
Mr. Thompson. I will start. I can't speak to every other
country, but I think the one thing that makes ours very
different--and I like to say it in lay terms--ours is visitors
paying to grow the visitor entry. So our funding comes from the
small fee that members of the visa waiver countries, visitors
from visa waiver countries pay. So I think that is the biggest
difference. I think Ms. Barnes in her testimony suggested that
much of our competition that is as well-funded or more funded
than us are public dollars that are actually being contributed.
Ours is no tax dollars, no tax burden.
Ms. Matsui. Fine. Thank you. And I ran out of time.
Appreciate it. Thanks. I yield back.
Ms. Schakowsky. The gentlewoman yields back.
And now we have yet another acting----
Mr. Carter. Not just another, Madam Chair, this is a
special one.
Ms. Schakowsky [continuing]. A special acting, and I
recognize Mr. Carter for 5 minutes.
Mr. Carter. Thank you, Madam Chair. And thank all of you
for being here.
I am sorry to tell you that I represent an area, the
coastal area of Georgia--unfortunately, we don't have a lot of
tourism. I mean, all we have to offer is the largest national
historic landmark district in the United States in Savannah,
Georgia. All we have to offer is the beautiful hundred miles of
pristine coastline with the Golden Isles. All we have to offer
is the Okefenokee Swamp and the Land of the Trembling Earth. So
tourism is not really that important to us, I will tell you.
We are very proud, as you can tell. Savannah is my home. It
is where I have lived all my time. I was born and raised there,
intend to live the rest of my life. And I am so proud of it,
and so proud of the tourism part of it because, obviously, it
is a job producer for us. Our economy depends so much on it. So
that is why this is so very important to us and so very
important to me as well. And I mentioned the Golden Isles, Sea
Island, St. Simons, everything that we have--all that we have
to be proud of, and that is certainly important.
I wanted to ask you, Ms. Barnes, since 2013, do you know
how many international visitors have come to the U.S.?
Ms. Barnes. Oh, sorry. I believe that there have been--it
has created 1.2 million American jobs, and Mr. Thompson
probably has the exact number, but we have had--I am--it is
lost my head.
Mr. Carter. That is OK.
Mr. Thompson?
Ms. Barnes. Sorry, 52,000 incremental American jobs each
year.
Mr. Carter. Wow.
Mr. Thompson. Yes, sir.
Mr. Carter. So very important, obviously, to the First
Congressional District of Georgia that I have the honor and
privilege of representing. So thank you for your work.
Can you explain to me, Ms. Barnes, how does the partnership
model work between Brand USA? And how do you equate that
marketing specific areas of the United States?
Ms. Barnes. Sure. So I am going to let Mr. Thompson answer
that question.
Mr. Carter. Yes, that is fine.
Mr. Thompson. So we deploy resources, Congressman, across
three major buckets. One is our direct-to-consumer messaging,
which is our owned assets that we take to 14 markets around the
world. We have an active relationship with the travel trade
around the world with 16 offices that we actually have. And
over half of our resources are spent in cooperative marketing.
That is with us channeling our dollars in partnership with the
cities and States all around the country.
And, again, that is a formula of cooperative marketing that
allows us all to extend our resources so that, if it is one
plus one, it equals three or four. If it is one plus one plus
one, it equals four or five, six or seven. And that is the
ability that we bring mostly because of the economies to scale
that we have in the marketing relationships we have with media
sources around the world.
Mr. Carter. So the model that you use, which applies the
fees through ESTA and the Visa Waiver Program, is that better
than any other model that you can think of?
Mr. Thompson. Congressman, as for what I know, I know of no
other that does not involve tax dollars. Or if there are, there
are very few of them.
Mr. Carter. Great.
Mr. Thompson. And I think that is the beauty of this
public-private partnership, that it is, in layman terms, as I
said earlier, visitors paying to grow the visitor industry,
which makes it one of the purest public-private partnerships
and allows us all to extend resources to the benefit of the
entire country.
Mr. Carter. Right. You know, not only are we home to all
the great things that I mentioned before, but we also have two
major seaports, the port of Savannah and the port of Brunswick,
that we are very proud of. And one of the things that we often
talk about there is the trade deficit.
And I wanted to ask you, Ms. Barnes, in your testimony, you
said that travel is America's second-largest export. If we
didn't have that, would our trade deficit be even higher?
Ms. Barnes. Absolutely. In 2018, we had a travel trade
surplus of $69 billion. Without international travel, it would
have been 11--the trade deficit would have been 11 percent
higher. So when international visitors come here, they spend
money in our restaurants, in our hotels, in retail and
otherwise. That is considered an export. And in the travel
industry, it is the number-two export for the U.S. economy
overall.
Mr. Carter. Great. And that only adds to the fact, and I
certainly would be remiss if I didn't mention that the Port of
Savannah is one of the few ports in America that consistently
has more exports than they do imports. So adding onto that with
the tourism, we are doing our part in that part of the country
as well.
Mr. Burstein, can you explain very quickly the SAFE WEB
Act's provision that authorizes staff exchanges between our
benefits and how it benefits the Commission?
Mr. Burstein. In a nutshell, basically, this provision
allows the FTC to onboard visiting officials from foreign
agencies, subject to appropriate security and confidentiality
requirements. The benefits of doing that are--sort of play out
over the long term. It helps a lot to have partners overseas
who understand the FTC well and the laws that it enforces. That
just helps build trust and helps both agencies on both sides
identify opportunities for cooperation and figure out how to
navigate it in specific cases.
Mr. Carter. Great. Well, thank you very much, and thank all
of you for your work. As I say, this benefits our district and
our country tremendously. So thank you.
Ms. Schakowsky. The gentleman yields back.
And, Mr. McNerney, you are recognized for 5 minutes.
Mr. McNerney. I thank the chair, and I thank the acting
ranking member. And I thank the panel for your time today.
There are some lesser-known destinations, like my district,
that are really hidden gems for foreign tourists. Whether it is
visiting Lodi wineries or the Bay Delta or Big Break or Antioch
Dunes, there is a lot in my district for travelers around the
world to look at.
Mr. Thompson, can you talk about how Brand USA benefits
less traditional destination spots?
Mr. Thompson. Yes, sir. Again, the legal charge is that we
are responsible for doing that, promoting beyond the gateways.
So the beauty of the internet, the beauty of the fact that most
of our marketing is done on digital and social marketing
channels, allows us to see those conversations on those social
marketing channels, see the conversations that are deployed and
the marketing that we do on the digital channels, and then it
all refers back to our website. And on our website, we have the
ability to promote the entire geographic experiences, the
lifestyle experiences that you can have anywhere in the United
States. So most of what would be represented in your great part
of the State of California would be included in that overall
promotion.
Mr. McNerney. Well, thanks. So how could smaller towns and
businesses take advantage of Brand USA's resources?
Mr. Thompson. Well, in a lot of cases, there is a local
convention and visitors bureau or one nearby that is charged
with telling the story, specifically about that part of the
State of California. And, as was mentioned by the Congresswoman
also from California, Visit California is a very good statewide
representation of what all there is to see and do in
California. We would not attempt to try to tell those stories
on our own because we couldn't tell it as well as those
destinations tell those stories.
Mr. McNerney. True.
Mr. Thompson. Our job is to make sure those stories are on
our platforms, are amplified through our platforms, and are
pushed out to those that are interested in those type of
lifestyle interests or specifically visiting the State of
California.
Mr. McNerney. Well, thank you. That is good.
Mr. Thompson. Yes, sir.
Mr. McNerney. Mr. Burstein, a lot has changed since 2006
when the SAFE WEB Act was passed. Ninety-eight percent of
Americans own cell phones. Eighty-one percent own smartphones.
Internet usage has exploded. And that really opens up
opportunities for malicious actors who are employing more
sophisticated techniques and technologies.
Would you agree that the need for the U.S. SAFE WEB Act has
increased since 2006?
Mr. Burstein. I would certainly agree, for the reasons that
you point out. And as use of connected devices has increased
and the number of devices has increased, perpetrators of fraud
and scams have also become increasingly sophisticated and can
take advantage of other ways to carry out their schemes.
Mr. McNerney. Are there specific types of cross-border
fraud that we ought to be aware of?
Mr. Burstein. You know, I think any of the types of
consumer protection matters that the FTC deals with generally
can have a cross-border element. It becomes especially
challenging for the FTC and helpful to have SAFE WEB authority
where there is money moving overseas, and the Act gives the FTC
the authority to go after--very specific authority to go after
foreign actors and to potentially obtain assets to help
compensate victims.
Mr. McNerney. I mean, for an individual that has been
defrauded, is it viable for them to go to the FTC and get some
remedy?
Mr. Burstein. The FTC, I think, as a general matter,
doesn't really address specific individual complaints but
instead looks at trends and looks at cases where they can
obtain relief for a significant number of consumers. And that
is sort of what guides the agency's decision, but certainly,
they receive individual complaints, and those are important
elements of determining what to investigate and which cases to
bring.
Mr. McNerney. What would happen to U.S. companies if the
U.S. SAFE Act were to expire?
Mr. Burstein. If the act were to expire, all of the
authorities that it provides to the FTC currently would go
away. So, for example, the fact that some companies are victims
of cross-border frauds, you know, whether it is sort of
business-to-business types of schemes, those could potentially
be more difficult for the FTC to prosecute. Sometimes
companies' names might be used. For example, a company's name
might be used to, say, tell a consumer that they need to get
their device serviced as a sort of tech support scam. So that
would be another way that companies could lose out if SAFE WEB
were not to be renewed.
Mr. McNerney. OK. I yield back.
Ms. Schakowsky. The gentleman yields back.
And now I recognize Congressman Soto for 5 minutes for
questioning.
Mr. Soto. Thank you, Madam Chairwoman.
Certainly, we are big supporters of Brand USA in the
Orlando and central Florida area. I think it bears discussing
real quick how Brand USA works for my constituents. Fourteen
dollars through the Visa Waiver Program for the Electronic
System Travel Authorization, passenger screening fees, all that
goes together to develop $100 million paid for by tourists
coming into the country and matched by private-sector money. So
$200 million. Plus, another $60 million back to the Treasury,
which certainly is no shabby feat there. So this is a self-
funded program with $47.7 billion in economic output. So
definitely a great value.
We know the story in Orlando: 126 million tourists to
Florida, seventy-five million of those went to our region. Of
those, about 10.8 million international tourists. We are up
with Canada, we are up with Brazil, but we are down with the
U.K. and some of our European brothers and sisters. So we know
we can't take it for granted, international travel, and that is
where Brand USA, with our partners in Florida and other States,
play such a critical role.
The other thing to understand, and I know our panel
understands, is the big attractions they are already
advertising: Disney, Universal, Sea World, Legoland. Try to go
to any State or territory in the Nation and beyond and not see
the commercials. But it is the small businesses that seem to
get the most bang for the buck out of Brand USA and Visit
Florida. Like the U.S. Tennis Association and Gatorland in
eastern Orlando, east Orange County; the Paddling Center, if
you want to paddle on the Shingle Creek; or Pioneer Village in
Osceola County, and see our rancher heritage there; Bok Tower,
where you can see unique flora and fauna, as well as the
central Florida sports complex, both in Polk County; and then
all the mom-and-pop hotels that are along 192, and I drive, all
benefit from having those little internet ads and getting those
Google searches right and all the other little tricks of the
trade to connect to this.
So it would be helpful if I could hear from both Mr.
Thompson and Ms. Barnes about your opinions on how this helps
small tourist businesses in a lot of our districts. And we will
start with Ms. Barnes and then Mr. Thompson.
Ms. Barnes. So thank you for the question. I think one of
the things to highlight or that you noted is that the Disneys
of the world, who are very important members and partners in
this, have the resources to sort of market themselves. But it
is these smaller destinations that don't have the resources
without collaborating with Brand USA that wouldn't be able to
market in such platforms across the globe. So it is really
those smaller destinations that benefit the most. And I will
let Mr. Thompson answer more specifically that answer as well.
Mr. Soto. Sure.
Mr. Thompson. Congressman, I appreciate your comments.
Again, Florida is my home State. And I was with Visit Florida
for 15 years, so I know that model well, and I know the
relationship that we have had with them.
You know, even though Disney and those major players in
Orlando do a lot on their own, they also find ways to partner
with us.
Mr. Soto. And we don't take them for granted----
Mr. Thompson. Yes, sir.
Mr. Soto [continuing]. That they are leading the charge in
central Florida. But I think sometimes there is a notion that
it is just going to some of these major tourism attractions,
when it goes all throughout.
Mr. Thompson. And I think with our sensitivity to and legal
responsibility to looking beyond the gateways, I will use a
destination that often--that doesn't have the recognition
Orlando has, which is Kissimmee. You mentioned 192.
Mr. Soto. Sure----
Mr. Thompson. Kissimmee is a major cooperative marketing
partner with us because--for that very reason. They see the
opportunity to raise the awareness of that destination, which
is, you know, right border to Orange County and oftentimes not
recognized at the same level that Orange County because of all
the major infrastructure. A lot of people don't realize there
is a big portion of Disney that is actually in Osceola County.
Mr. Soto. Sure. It is in my district.
Mr. Thompson. Yes, sir. So you know it well. So I think
that is--I think you are just preaching the real value
proposition that we bring to the equation, is that we certainly
do not take our gateways for granted, because other than the
two countries we share a border with, that is the only way
people get here. But once they get here, we make sure they
understand that, not only are there those opportunities in
those gateways, but within just a couple hours of each of those
gateways, there is opportunities they are not even aware of.
Mr. Soto. Sure.
Mr. Thompson. Yes, sir.
Mr. Soto. Well, thanks for that.
I just want to end with a brief story that I was kayaking
at the Paddling Center in Osceola and Kissimmee. It is no more
than probably 5 miles, 7 miles from Disney World, and you get
to kayak on Shingle Creek. And they get pretty much most if not
all their customers from just a simple Google search of Disney
and kayaking, or Orlando or Kissimmee and kayaking. And it is
all based upon those ads that come from Visit Florida that work
with Brand USA. So we appreciate what you all do.
And I yield back.
Ms. Schakowsky. The gentleman yields back.
And now I recognize Mr. Bilirakis for--what? I am sorry.
What? Oh.
Mrs. Rodgers. Go to Bill.
Ms. Schakowsky. Thank you. Out of order, but still I
recognize Mr. Bilirakis.
Mr. Bilirakis. Thank you. I appreciate the recognition.
OK. Well, Madam Chair, I know a lot has been said, and this
is a great program, particularly for our hidden treasures. And
I represent the Tampa Bay area, and we have many, many hidden
treasures in the Tampa Bay area. I am not going to go through
all of them, but this is a wonderful program, particularly for
entities, whether they are cities, counties, chambers, what
have you, and they don't have a lot of money to advertise. And
this is a great partnership.
So I have a couple questions. Mr. Thompson and Ms. Barnes,
is there any other program in the Government that doesn't cost
taxpayers a dime but provides 25-to-1 return on investment? And
can you explain how Brand USA determines its success in this
regard? It is a tough question, right?
Mr. Thompson. So, Congressman, thank you for your
sponsorship of this bill and for all you have done for the
State of Florida, my home State, and for what you are doing for
Brand USA. We are very--I am not in a position to speak to any
other program and how they are funded and how it would compare
to ours. All I can speak to is ours. We are very proud of our
ROI study. You mentioned the 25-to-1 return on investment. That
is consistent over the 6 years of our existence. It is verified
by an outside third party with credibility. It measures our
reach into markets across all of our marketing channels and our
ability to influence the intent to travel to the United States.
It has been consistent over the 6 years, and the numbers that
have been well documented and articulated here is that it is
in--you know, resulted in the over 6 million incremental
visitors over those 6 years and the collective spend of nearly
$48 billion.
So I would say that that has been the one consistent thing
that I think we have been able to bring forward as our
accountability to Congress. And the methodology, the entire
study for the last year's ROI, is included on the record and is
available for each and every one of you and your staff to be
able to look at, as far as the methodology and the end result.
Mr. Bilirakis. I appreciate it very much. Again, the proof
is in the pudding.
Mr. Thompson. Yes, sir.
Mr. Bilirakis. And we did put in--when we reauthorized 5
years ago, we put in further accountability measures, and we
have improved the bill as well this year.
So another softball here. Mr. Thompson and Ms. Barnes, your
testimonies both discuss the urgency of reauthorizing Brand USA
and extending its funding source. Can you elaborate on this and
explain why we need to get this done this year as opposed to
waiting until next year? And I know that is very important. It
is critical.
Mr. Thompson. Congressman, I will take that one, if you
don't mind, also.
Mr. Bilirakis. Sure.
Mr. Thompson. I emphasized that in my testimony and the
fact that destination marketing requires at least a 12-year
planning window and--I mean, excuse me, 12-month planning
window. In many cases, it is 18 months.
Mr. Bilirakis. Right.
Mr. Thompson. Our success over these 6 years, documented by
our ROI study, is our ability to go in and do the research
necessary to qualify the markets, to qualify the opportunities,
and to make sure that we are deploying the resources in the
most efficient and effective way that we can do it. We are
already inside the 12-month window for planning for 2021, much
less the current fiscal year. So every month that goes by, it
is compromising our ability to have an influence on this
current fiscal year and also compromising our ability to have
the same influence we have had over the last 6 years and the
following fiscal year.
And that is not just for us, it is our partners here in the
United States who also have their own planning cycles, and as
important, our tour operators and our media companies that we
work with in the markets that we are promoting in. They are
also making decisions on where they are going to deploy their
dollars and who they are going to promote. Without adequate
planning time, we compromise our ability to be as efficient and
as effective as we have been in the past.
Mr. Bilirakis. The bottom line is, you need certainty.
Ms. Barnes, do you want to add anything?
Ms. Barnes. Sure. I would just add that the certainty
really is critical. I mean, this is not a typical government
program. It can't be retroactively reinstated in a way that
would allow Brand USA to continue the strong work that it does,
as Mr. Thompson just noted. And I would also just highlight
that, you know, as I noted, if Brand USA were to go away, we
would be one of the top 20 destinations, the only one, that
doesn't have a travel promotion marketing budget, and that
would be really catastrophic from an economic perspective.
Mr. Bilirakis. I agree.
I have a couple more questions but, Madam Chair, in the
interest of time, I will submit them for the record. But I will
encourage all Members to please cosponsor this bill, and also,
the people listening at home, this is really great for your
economy, and encourage your Member. Please encourage your
Member to cosponsor the bill and support the bill.
Thank you, and I yield back, Madam Chair.
Ms. Schakowsky. The gentleman yields back, and I thank him
for his leadership.
And now I recognize for 5 minutes Congresswoman Blunt
Rochester.
Ms. Blunt Rochester. Thank you, Madam Chairwoman. And thank
you to the panelists.
I would be remiss if I did not do a commercial for the
First State, which no one can take away from us, because we are
the first State, Delaware, and in that regard, we have culture,
everything from the Clifford Brown Jazz Festival and Rehoboth
Beach Jazz Festival to the Bob Marley People's Festival,
Firefly, and the Apple Scrapple Festival, for those of you who
like apples and scrapple. We also are very historic, including
stops on the Underground Railroad. We have farms that grow
great vegetables and fruit, but also we have dairy. So we have
the best ice cream in the United States of America. And also,
we are known for tax-free shopping. I know there are some snaps
out there for tax-free shopping. And last but not least, I
would just mention our pristine beaches. We have some beautiful
beaches. Our slogan is ``endless discoveries'' because there
are many discoveries that a lot of times people don't know
about such a small State. And I think that is why this hearing
is really vitally important for the economic viability of our
country, but also just to share across the world the things
that we have.
And I had the opportunity to live in China for a few years,
and the country of America is called Meiguo. Mei is for
beautiful. We are known as the beautiful country. And so what
you do is really an opportunity for us to showcase that.
And my questions really start with taking up with Mr.
Soto's comment about small areas, small States. Particularly, I
understand that the Travel Promotion Act mandated that Brand
USA treat rural and urban markets equally, including smaller
markets that are not as visited by international travelers.
And so I just wanted to ask Mr. Thompson, does Brand USA
face any barriers to achieving that goal of promoting travel to
small and rural markets? Are there areas of improvement that
you see? And then, how can we as Members of Congress help in
those areas of improvement, in addition to supporting the great
work of Mr. Welch and Mr. Bilirakis?
Mr. Thompson. Congresswoman, lots of questions. I would
say, as it relates to our mandate to promote the entirety of
the United States, a State like yours is well represented on
our digital platforms. You know, traditional advertising in the
destination space was a 30-second ad, and it would be
impossible to talk about what there is to see and do in the
United States in a 30-second ad. So that is why we really
concentrate on the digital platforms, the social media
platforms. And so all the stories being told by your
destinations within your State that are on the internet are
then amplified by what we are doing.
You know, support of this bill and our ability to move
forward is the most critical part of what we are looking for.
Obviously, there are other travel policy issues that are
related, but being selfish, our reauthorization is the one I am
focused on right at the moment.
Ms. Blunt Rochester. Well, I want to tie it into your
reauthorization. That is why I asked the question.
And, Ms. Barnes, you might want to answer as well, if there
are things that we could do, particularly for smaller and rural
areas.
Ms. Barnes. I think, quite honestly, the voice of Members
of adding as a cosponsor, which I believe you are, encouraging
other colleagues from other small States as well, I think
States throughout all of the United States, and I think also
voicing, you know, the strong bipartisan support, moving
forward with the congressional leadership and really urging
this to be, you know, not only marked up but included in a
must-pass legislation before the end of this year.
Ms. Blunt Rochester. Gotcha. Great.
One other question I had was about people who travel here
internationally but they are already in the country. And I
know, through concierges and other ways, you are able to reach
out to them, but can you describe just some successful efforts
that you had in that regard, people who get here and then have
to go out to other places?
Mr. Thompson. You know, long-haul travel is a major
investment, not only of dollars, but of planning. So in many
cases, our visitors are coming here, and as Ms. Barnes stated,
they stay for an extended period of time. So they are here for
weeks at a time. So much of what they are planning is they know
that they are going to come in at one destination, and they may
be leaving at another destination, and they may be driving or
flying in between.
The ability that we have on our platforms to be able to
talk about what there is to see and do in between is what fuels
a lot of those decisions, yes, ma'am.
Ms. Blunt Rochester. Great. Thank you.
And I yield back.
Ms. Schakowsky. And now it is my pleasure to yield 5
minutes to the real ranking member of this committee, Mrs.
McMorris Rodgers.
Mrs. Rodgers. I thank the chair for yielding.
And I apologize, I was down at DOT speaking on autonomous
vehicles, self-driving cars, which is also exciting. Clearly,
though, I am picking up on here, I think we are going to have
to do a taste test on ice cream, because we have the Washington
State University Creamery that I will put up against anyone
else, and we will have a little social in our future. That will
be good.
But great to hear about Brand USA. I wanted to go back to
the legislation that I am proud to be helping lead this
Congress, and that is the reauthorization of the U.S. SAFE WEB
Act. And we had a hearing earlier this year with the FTC. All
five FTC Commissioners were at the hearing, and they were
talking about how critical it was to reauthorize the
legislation, critical to the agency's international work.
So I wanted to ask Mr. Burstein--and Robin Kelly and I are
working on this legislation together--would you just explain
how the Commission uses the tools the Act provides, and what
the effect would be if we failed to reauthorize it?
Mr. Burstein. Yes. Thank you for the question. I think
there are three main ways that the FTC uses the SAFE WEB Act in
its investigative capacity, and then one that is more of a
general agency relationship-building mechanism.
In terms of its use in investigations, you can think of it
as helping information to flow in two directions. One is that
it allows the FTC to provide assistance to foreign law
enforcement agencies, to provide information to them, and the
actions of those agencies can support or complement actions
that the FTC itself brings. The Act also allows the FTC to
guarantee confidentiality of information that it receives from
foreign law enforcement agencies. And then a third
investigative and operational impact of the Act is that it
gives a very clear grant of authority for the FTC to bring
cases against foreign actors who cause harm in the United
States, as well as to bring actions against entities that have
some aspect of their conduct occur in the U.S. but harm
consumers overseas.
So those are the three main ways that the act supports the
FTC's investigations and enforcement actions.
In addition to that, there is a provision that allows the
FTC to conduct staff exchanges, and under this authority the
FTC has hosted dozens of officials from foreign law enforcement
agencies. Those folks gain a better understanding of how the
FTC works. And when they return to their home countries and go
back to working in their law enforcement agencies, they can
become better contacts, trusted contacts at the FTC, and that
can establish a foundation for more effective enforcement
cooperation.
Mrs. Rodgers. Would you give us some examples of what would
happen if we did not have the U.S. SAFE WEB Act in law?
Mr. Burstein. So I think, generally, it would impair the
FTC's ability to get information from foreign sources. The
confidentiality protections are very important in that regard,
and it might make foreign law enforcement agencies less willing
to provide information that can help the FTC conduct its
investigations.
The extraterritorial authority that I mentioned is also, I
think, extremely useful in some FTC cases. Foreign defendants
might become more willing or emboldened to challenge the FTC's
authority if there weren't this clear statutory authorization
saying that they are subject to the FTC's authority.
Mrs. Rodgers. OK, thank you.
And then, Ms. Barnes, I know we have been talking a lot
about USA Brand. Would you just speak to the economic impact
and the number of American jobs that Brand USA has meant?
Ms. Barnes. Sure. So since 2013, Brand USA has brought
$47.7 billion in economic input to the U.S., creating 52,000
jobs annually, incrementally, incremental jobs. And
importantly, international travelers, when they come here, they
spend $4,000. Chinese travelers, for example, might spend as
much as $7,000. So in addition to the positive, economic
benefits when these international travelers come here and
leave, that is considered an export. And so there has also been
a $69 billion travel trade surplus created by international
travel, helped by Brand USA in 2018. And were it not for
international travel, the trade deficit would be 11 percent
higher, so significant economic input and jobs created.
Mrs. Rodgers. Super. Thank you.
I yield back.
Ms. Schakowsky. Thank you. The ranking member yields back.
And now, last but not least, I want to give 5 minutes for
questioning to the sponsor of the legislation, and that is
Peter Welch.
Mr. Welch. Thank you very much.
You have been good witnesses, so we have gotten the
information. I was going to reiterate the importance--you have
been clear about the importance of passing this now because of
the lead time, so I won't ask you to say it again. I think you
have made the point very, very clearly. But I do want to
emphasize the urgency that we act. And I want to thank
Chairwoman Schakowsky because she realized that very much, and
that is why we are having this hearing.
Secondly, though, I do want to talk a little bit about what
is happening with China, because we used to have significant
visitors from China. Obviously, there is some turmoil. We have
got a battle about trade and other political issues. And their
visits are down and their spending is down.
How can Brand USA help us mitigate that loss of a very
important market?
Ms. Barnes. Thank you. And thank you so much, Congressman,
for your leadership on this important issue. Brand USA is so
important, and we would not be where we are without you, so
thank you.
Travel from Chinese is, in fact, down. It is down from
about 3.2 million visitors to about 3 million. And a lot of
that is a result of not only the strong dollar, but the trade
tensions with China. I will let Mr. Thompson talk a little bit
more about this, but from our perspective, from an industry
perspective, were Brand USA not in China with their four
offices, we would be in a really bad position, because we know
that they are there, and they are still encouraging and working
to drive international travel.
Mr. Welch. So you have to get the counter story out----
Ms. Barnes. Yes, absolutely.
Mr. Welch [continuing]. That it is safe to be here, you are
welcome to be here, and we are waiting for you to come.
Go ahead, Mr. Thompson.
Mr. Thompson. Congressman, I will add my thanks for your
leadership in this regard. It is very much appreciated.
You know, I said in my testimony and in response to some of
the questions, the amazing power about travel is that it has
the ability to transcend politics. We have our fingers on the
pulse of the sentiment in China, and the sentiment in China as
it relates to U.S. being the most aspirational destination in
the world has not changed.
Mr. Welch. That is good.
Mr. Thompson. So, as there are trade tensions between our
two countries, what makes the United States aspirational has
little to do with politics. It has everything to do with the
destinations, the experiences you can have here, and also some
of the most welcoming people in the world.
Mr. Welch. Great.
Mr. Thompson. So our ability to stay connected to the
travel trade through our four offices, our ability to stay
active on the digital and the social media platforms, and doing
it in China is like no other place. We had to build a whole
separate digital platform to do so. So we are there and we are
staying strong as far as our commitment there, because it is
such an emerging market.
Mr. Welch. Thank you very much.
And one other question that always arises when there are
advertising campaigns is how do you measure whether it is
working, because you can't link a particular purchase to a
particular ad. But on the other hand, it is in your interest,
obviously, to have some confidence that it is working. And can
you just speak to that?
Mr. Thompson. Well, I would speak to it in two ways. One is
the ROI study that is on the record that talks about our ROI,
which over 6 years has been 25 to 1, as far as dollars
invested. Again, no taxpayer dollars but----
Mr. Welch. Right.
Mr. Thompson [continuing]. Visitor dollars that are
invested to grow the visitor industry, a 25-to-1 return. And I
would suggest the other way that we measure that is, over our
history, we now have over a thousand partners that partner with
us on a regular basis. Those are destinations and brands here
in the United States, it is tour operator companies, and it is
media companies around the world. And we have a 94 percent
retention rate with those partnerships. And, if what we were
doing in deploying in market wasn't working, I don't think that
we would have that high of a retention rate.
Mr. Welch. Ms. Barnes, do you have anything to add?
Ms. Barnes. No. I would just echo that. And I think that,
in addition to that, testimonials on the ground. I know you
were recently at a fall foliage festival in Vermont, and I
think hearing firsthand from the bed and breakfasts and the
other folks in different States highlighting the importance of
Brand USA driving customers, there is another important touch
point in the testimonial voice.
Mr. Welch. Great. Thank you.
I yield back.
Ms. Schakowsky. Thank you.
I want to thank our witnesses. You had an opportunity to
have a little travelogue here, yourselves, the wonderful
districts that we are so proud to represent. And I want to
thank all of you for coming, sometimes having to repeat
yourself, but I am so happy that people were in and out of this
hearing and were able to hear the background on both of these
pieces of legislation.
I remind Members that, pursuant to committee rules, you
have 10 business days to submit additional questions for the
record to be answered by the witnesses who have appeared. And I
ask the witnesses, please, to respond promptly to any questions
that you may receive.
I request unanimous consent now to enter the following
documents into the record: a letter from the Federal Trade
Commission, a letter from the Electronic Privacy Information
Center, and a letter from the American Hotel & Lodging
Association. And with no objection, so ordered.
[The information appears at the conclusion of the
hearing.]\1\
---------------------------------------------------------------------------
\1\ The Electronic Privacy Information Center letter has been
retained in committee files and also is available at http://
docs.house.gov/meetings/IF/IF17/20191029/110153/HHRG-116-IF17-20191029-
SD006.pdf.
---------------------------------------------------------------------------
Ms. Schakowsky. At this time, the subcommittee, with our
thanks, is adjourned.
[Whereupon, at 4:25 p.m., the subcommittee was adjourned.]
[Material submitted for inclusion in the record follows:]
Prepared Statement of Hon. Frank Pallone, Jr.
We are here today to discuss the reauthorization of two
important programs that protect and support American consumers
and businesses. The first promotes foreign travel to the United
States, which bolsters our economy and creates American jobs.
The second enhances the Federal Trade Commission's cross-border
cooperation and enforcement so it can protect U.S. consumers
and businesses from foreign actors engaged in fraud and
deception.
Our Nation has a broad variety of unique treasures that
attract tourists from all around the world. Whether you're
looking for arts or adventure, nature or theme parks, music or
sports, there is something for everyone in our country.
Tourism is a critical industry in my district and
throughout New Jersey. From hiking in Sandy Hook to pilgrimages
to the Stone Pony in Asbury Park, foreign and domestic
travelers are helping hotels, restaurants, and other small
businesses grow and succeed. But we can always welcome more
visitors from abroad.
Brand USA--established by the Travel Promotion Act of
2009--makes sure that foreign tourists are aware of the endless
possibilities available to them when they travel to the United
States.
I applaud Representatives Welch and Bilirakis for their
work over the years to ensure the success and long-term
viability of this important program. They have now introduced
legislation that would ensure Brand USA is funded through 2027.
It's important that we continue to support Brand USA's
mission. International travel to the United States supports 1.2
million American jobs. It also adds billions of dollars to our
economy. A new study shows Brand USA's global marketing
initiatives deliver an excellent bang for the buck. For every
dollar spent on marketing by Brand USA, 28 dollars are added to
the U.S. economy. As we continue to work to strengthen our
economy, we should certainly look at extending Brand USA beyond
next year.
I also look forward to discussing legislation introduced by
Ranking Member McMorris Rodgers and Representative Kelly to
extend the U.S. SAFE WEB Act of 2006. Last reauthorized in
2012, the SAFE WEB Act enhances the FTC's ability to protect
U.S. consumers and businesses from cross-border fraud and
deception.
With the internet, advances in telecommunications, and our
increasingly connected homes and businesses, Americans are more
susceptible than ever to foreign actors engaged in fraud and
deception, illegal scams, and spyware.
The SAFE WEB Act affirms the FTC's ability to go after
foreign actors engaged in wrongdoing. The law also bolsters the
FTC's ability to exchange information and to provide
investigative assistance to foreign law enforcement agencies.
This kind of cross-border cooperation is crucial to the FTC's
ability to bring strong enforcement actions.
The FTC has relied on provisions of the SAFE WEB Act for a
wide range of cases--from its takedown of a sweepstakes
telemarketing scam targeting older adults to its action against
a manufacturer of connected toys that violated the Children's
Online Privacy Protection Act.
However, without Congressional action this law will expire
next year.
We should extend both these programs to protect American
businesses and consumers.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]