U.S. looks at tourist tax to fund company to promote tourism

To entice more international travelers to visit, U.S. tourism officials and lawmakers may start charging some who do make the trip an extra $10 for the privilege.

The money collected will be used to create and fund a non-profit company that will market the USA as an attractive destination for tourists, business travelers and students.

But before any money can be spent on marketing, the company must find a dollar-for-dollar match from the private sector, up to $100 million. The enterprise will be a private-public partnership overseen by Congress and the secretary of Commerce.

Last week, the U.S. House voted overwhelmingly for the Travel Promotion Act, which includes the $10 charge. The measure now heads to the Senate, where passage is likely before year's end, predicts Geoff Freeman of the U.S. Travel Association (USTA).

Only visitors from countries not required to have entry visas for up to 90 days of travel in the U.S. — most European countries, Australia, Brunei, Japan, Korea, Singapore and New Zealand — will be required to pay the fee. Travelers only have to pay once in a two-year period, regardless of the number of trips.

The legislation attempts to create an agency similar to those found in other countries, where a cabinet-level government entity or a national tourism company promotes tourism. The Department of Commerce has trade and economic development units but doesn't directly promote tourism. [Read More]