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11 GBTA 2012 Government Relations Agenda Shane Downey Director, Public Policy Global Business Travel Association.

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Presentation on theme: "11 GBTA 2012 Government Relations Agenda Shane Downey Director, Public Policy Global Business Travel Association."— Presentation transcript:

1 11 GBTA 2012 Government Relations Agenda Shane Downey Director, Public Policy Global Business Travel Association

2 2 The Global Business Travel Association

3 3 Business Travel is Vital to U.S. Economy $250 Billion U.S. Spend (Exceeds the Consumer Electronics Industry $190 Billion Spend) 1/3 rd of all U.S. Travel Spend 8 Million Total Travel/Tourism-Related U.S. Jobs One in Ten U.S. Jobs is Supported by the Travel and Tourism Industry Businesses Continued to Invest in Finance, Equipment, Software, Mergers & Acquisitions and Business Travel Good Return on Investment: Every $1 Increase in Business Travel Spending Increases Company Profits by $20 on Average $1 Trillion Worldwide Spend International Travel Outpaced Domestic Travel Business Travel Was Responsible for One Third of the Growth in Global Trade Over the Past Decade

4 4 Increased Business Travel = Increased Jobs The GBTA BTI is Derived from Total Business Travel Spending and is a Statistical Indicator of the Health of the Overall U.S. Economy  A Significant Increase in Business Travel During The 4 th Quarter of 2010 Was Followed By a 658,000 Increase in U.S. Employment During Q1 2011

5 5 GBTA Represents the Collective Voice of the Business Travel Industry in Washington, D.C. Why Business Travel Needs an Advocate? –Policy, Tax and Funding Decisions Made by Congress and the Administration Impacts the Growth and Success of our Industry We Are Your Advocate

6 6 January 2012: Influencing the Debate Testified on Discriminatory Rental Car Taxes at House Judiciary Committee Hearing Met With Key Congressional Staff to Support Long-term FAA Reauthorization Bill, Including Acceleration Of Nextgen Supported Visa Waiver Program Improvements with House Judiciary Committee Supported Further Expansion of Global Entry and Intelligence-Driven, Risk-Based Passenger Screening Joined Broad Coalition Letters Urging Congress to Bar U.S. Airlines From Participating in Illegal European Union Emissions Trading Scheme

7 7 2012 Legislative Symposium June 18-20 Washington, DC Summit/Pages/default.aspx June 18 – Evening Reception June 19 – Education Day June 20 – Capitol Hill Visits

8 8 2012 Government Relations Agenda …Protecting the Business Travel Community Faster, Smarter and Safer Passenger Screening Fair Taxation and Fees Efficient and Accessible Travel Infrastructure

9 9 Faster, Smarter and Safer Passenger Screening

10 10...Moving Business Travelers Faster Through Security Voluntary Passenger Pre-Screening Initiative −Enables TSA to Focus its Efforts on Passengers the Agency Knows Less About −Information is Embedded in the Barcode of the Passenger’s Boarding Pass Currently in – Atlanta, Dallas, Detroit, Miami, Minneapolis, Las Vegas, and Los Angeles −Expanding to 28 Airports in 2012  Seattle Included in Expansion Expedited Screening Could Include No Longer Removing the Following Items: −Shoes −3-1-1 Compliant Bag from Carry-on Bag −Laptop from Bag −Light Outerwear/Jacket −Belt

11 11 Global Entry Program Expedited Clearance for Pre-approved, Low-risk Travelers Upon Arrival in the U.S. Currently Operating in 20 “International Airport” Locations Within the U.S. −Including Sea-Tac Global Entry Enrollment = Enrollment

12 12 Global Entry at Sea-Tac

13 13 GBTA Supports Expanding to Additional Airports, Airlines and Other Known Frequent Traveler Pools Expanding Global Entry to International Airports and Supporting U.S. Government Entering into Reciprocal Security Screening Agreements ACTION for GBTA MEMBERS: –Encourage Airlines, TSA and Airports to Expand –Advise GBTA as to Lengthy Wait Times at Checkpoints

14 14 What Do These Have in Common? Budget Deficit Performing Arts Center Police Station Highway Construction Sewage Treatment Facility Culinary Institute Baseball Stadium General Revenue Convention Center Domestic Security Police Radios Basketball Arena Art Museum Fire Station RENTAL TAXES Fair Taxes & Fees

15 15 GBTA Testifies: END DISCRIMINATORY RENTAL CAR TAXES GBTA Testifies on February 2 Before House of Representatives Judiciary Committee in Support of the End Discriminatory State Taxes for Automobile Renters Act of 2011 118 Car Rental Taxes in 43 states –Artificially Raise Travel Costs –Decrease Demand –Often Funding Sports Stadiums and Museums that DON’T Benefit Business Travelers

16 16 GBTA Testifies: END DISCRIMINATORY RENTAL CAR TAXES StateCity Location Central City General sales Tax if applied to $55.22 rental Actual taxes on $55.22 rental Discriminatory increase over general sales tax MNMinneapolis$4.02$10.48$6.46 NVLas Vegas$4.47$11.10$6.63 ILChicago$5.38$13.79$8.41 ORPortland$0.00$9.39 MABoston$3.45$13.45$10.00 Worst 5 Central City General Sales Tax versus Discriminatory Travel Taxes Cities Car Rental Taxes Top 50 Destinations Seattle – 42 nd worst city

17 17 Air Transportation Taxes United States –Increased Security Fee  Increase in the TSA Passenger Security Fee from $2.50 per Passenger Enplanement to $5.00 per one-way trip, with Incremental Increases of 50 cents from 2013 to 2017  A Fee of $7.50 Per One-Way Trip in FY 2017 –New Per-Flight Departure Surcharge $100-Per-Flight Fee  Commercial Aircraft and Corporate/General Aviation

18 18 Air Transportation Taxes International –U.K.’s Air Passenger Duty (APD) Tax  Government Considering Increase of 10% Family of 4 Flying from the U.K. to the U.S. –$410 in APD, Up from $126 in 2006 Family of 4 from Florida to the U.K –Total APD of About $419 (up from $129 in 2006) 4 Business Travelers in Premium Economy Seats to the U.S. would be Faced with $820 in APD, up from $250 in 2006 –A 225% Increase in Taxes

19 19 Air Transportation Taxes EU Emissions Trading Scheme –January 1, 2012 Levy Carbon Taxes on a Per-Mile Basis  U.S. Airlines Required to Pay Emissions Tax to the EU Member State to which They Most Frequently Fly  Purchase Allowances for Miles Flown over Free Allowances  No Requirements for EU countries to Use the Funds Collected in Emissions Reduction Efforts –Traveler Tax from San Francisco to London > Traveler Tax from Washington to London –Likely Fare Increase  IATA Estimates Tax would add $21 to $45 to Flights to Europe  Opposed by U.S. Government, U.S. Airlines and Most Nations Global Solution Developed by ICAO is Best Option

20 20 GBTA Supports H.R. 2469, the End Discriminatory State Taxes on Renters Fair, Non Discriminatory Taxes ACTION for GBTA MEMBERS: –Ask Your Representative to Co-Sponsor H.R. 2469 Oppose Administration Efforts to Drastically Increase Security Fees Oppose United Kingdom’s Air Tax Oppose EU Emissions Trading Tax

21 21 Inefficient, Outdated Air Traffic Control Modernized Through NextGen 21 Washington, D.C. Boston, MA Optimal Route Burn 5883 lbs. Actual Route flown Actual Route Burn 7376 lbs. Additional burn due to reroute 1493 lbs Large Air Carrier: DCA to BOS, December 2008 Optimal Route Travel Infrastructure: Efficient & Accessible

22 22 GBTA Win: FAA Reauthorization Fewer Cancellations, Faster Flights for U.S. Business Travelers

23 23 GBTA Win: FAA Reauthorization Accelerates NextGen − Creates Chief NextGen Officer to Coordinate Programs − Accelerates Implementation of Key NextGen Technologies/Metrics − Four year, $64 billion Long-term Funding No Passenger Facility Charge (PFC) Increase/No Tax Increases Passenger Protections − Establishes Passenger Complaint Hotline − Requires Joint Airport/Airline Response to Tarmac Delays − Requires Government Study on Adequacy of Lost/Delayed Baggage Compensation − Requires Additional Reporting of Flight Delays/Cancellations

24 24 Accessible: U.S. Visa Policy Key Barriers To Increasing Overseas Travel to America: −A Highly Inefficient and Unpredictable Visa Application Approval Process −Lack Of Personnel to Process and Interview Visa Applicants and Lack of Access to a U.S. Consular Facility −Poor Planning and Communication to Applicants

25 25 Smart Visa Policy… Key to More American Jobs, More U.S. Exports & More Growth Increase America’s Overseas Travel to U.S. −A−Align Consular Affairs with Market Demands −R−Reduce Visa Interview Wait Times to 10 Days or Fewer and Match Western Europe’s Share of International Visitors in Brazil, China and India −I−Improve Planning −P−Preserve and Expand the Visa Waiver Program

26 26 GBTA Supports Full Funding of NextGen to Aggressively Modernize the Nation’s Air Infrastructure Improving U.S. Visa Policy –Expanding Visa Waiver Program –Expediting Visa Application Process –H.R. 2055 Congress Directs the State Department to Take the Necessary Steps to Reduce Visa Processing Times in China, Brazil and India ACTION for GBTA MEMBERS –Urge Elected Representatives to Support Adequate Funding for NextGen & Visa Policy Improvements

27 27 “Political Action is the Highest Responsibility of a Citizen." - John F. Kennedy

28 28 6 th Chapter Challenge is ON! GBTA is Challenging Its 40 Chapters to Engage Their Elected Officials on Business Travel Issues The Voice of the Travel Industry in Washington, DC and Congressional Districts Let Your Voice Be Heard

29 29 Chapters Completing 4 Tasks = PARTNERS 30% of Membership Send a Communication to an Elected Official Through the Legislative Action Center Invite an Elected Official to Speak at a Chapter Meeting or Host a GBTA Government Relations Focused Meeting Send a Letter to Its Representative or Senator Endorsing a GBTA Endorsed Bill or Vote Raise $1,000 in PAC Contributions Regardless of Chapter Size (Must Have 30% of Members Contribute)

30 30 2011 Chapter Challenge Partners Arizona BTA Austin (TX) BTA Central & North Florida BTA Chicago BTA Dallas/Ft. Worth (DFW) BTA Georgia BTA Michigan BTA North Central (MN) BTA North Carolina BTA New England BTA Ohio Valley BTA Pittsburgh BTA Rocky Mountain BTA Texas (Houston) BTA St. Louis BTA Silicon Valley BTA Utah BTA Virginia BTA Wisconsin BTA

31 31 Puget Sound BTA Standings

32 32 Puget Sound BTA Standings

33 33 NBTAPAC… Only PAC that Represents the Business Travel Industry WHO PROTECTS YOUR INTERESTS? –Congress Has Lots of Lawyers (208) and Even an Almond Orchard Owner, but NO Travel Professionals WHAT IS THE NBTAPAC? –Fund that Combines Your Support with Thousands of Your Colleagues to Make Contributions to Key Leaders and Members of Congress NEED YOUR SUPPORT –A Key Resource to Protect the Industry from Harmful Policies –Enables the Business Travel Industry to Support Legislators Who Share Our Views –Gives GBTA a Seat at the Table  If You’re Not in the Game, You Will NOT Win

34 34 NBTAPAC Donor Levels SHOW Your Dedication to the Industry Contributors at the following levels are recognized at Convention –PLATINUM MEMBERS - $2,000 + GOLD MEMBERS - $1,000 + SILVER MEMBERS - $500 + BRONZE MEMBERS - $100 +

35 35 DONATE TODAY TO MAKE A DIFFERENCE NBTAPAC is a federal political committee that makes contributions to federal candidates and committees. Contributions to NBTAPAC are voluntary and any member has a right to refuse to contribute without reprisal. The contribution guidelines are merely suggestions and a member may contribute more or less or not at all without concern of favor or disadvantage by the association. Corporate donations will be used to pay for other grassroots political activities. Contributions are not deductible as charitable contributions for federal tax purposes. Federal law requires NBTAPAC to request the name, address, occupation and employer for each person whose contributions exceed two hundred dollars ($200.00) or more in a calendar year.

36 36 Make Puget Sound BTA A 2012 PARTNER

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