Help for tourism industry pushed

Benjamin Grove

Monday, Nov. 5, 2001 | 9:56 a.m.

WASHINGTON -- As Congress this week mulls proposals designed to jumpstart the economy, Nevada's four lawmakers want some help for the sagging tourism industry.

They are urging fellow Congress members to remember legislation designed to prod tourists back to Nevada.

But it's a tough fight. The nation's lawmakers are sifting through dozens of proposals that could eventually become part of a massive economic stimulus bill. Giving aid to the $582 billion tourism industry is just one of many.

"There will be a tourism component," Sen. Harry Reid, D-Nev., said confidently. "Whether it's one or two or three things, we don't know. Everything is in the mix."

The economic stimulus package is still in flux, slowed by partisan differences. President Bush goaded Congress into action last week telling lawmakers, "Get to work."

The Republican-controlled House passed its version of the bill Oct. 24, a $99 billion plan that reflects Bush's call for emphasis on tax cuts.

The Senate could act this week. Many Senate Republicans back a $89 billion bill that is also heavy on tax cuts, such as breaks for business investment.

But Senate Democrats want fewer tax cuts, bigger unemployment and health-care benefits for laid-off workers and more spending on anti-terrorism projects. Reid backs $20 billion in spending on infrastructure projects, such as roads, trains and urban transit.

Somewhat lost in the broader debate are tourism-specific proposals that could help Las Vegas.

Reid is a co-sponsor of the American Travel Industry Stabilization Act, which allocates $5 billion in loans for travel-related businesses hurt by the Sept. 11 attacks. But the bill has just four other co-sponsors and has not drawn widespread interest.

Nevada senators have not signed the Travel America Now bill introduced by Sen. John Kyl, R-Ariz., which offers individual tourists a $500 tax credit for bus, train, cruise ship or plane tickets purchased by Dec. 31.

It also increases from 50 percent to 100 percent the amount a business meal can be tax deducted until the end of the year. Reid generally backs those proposals, although he hasn't thrown his weight behind the bill.

Sen. John Ensign backs the full meal tax deduction, but has not committed to a travel tax break for tourists, spokeswoman Traci Scott said.

About 20 senators have "expressed an interest in the concept" of Kyl's bill, an aide said. But only three have committed support by signing it.

Rep. Shelley Berkley, D-Nev., was one of seven to co-sign the House version of Kyl's bill, introduced by Rep. John Shadegg, R-Ariz.

The Sept. 11 attacks had a "devastating" effect on Las Vegas, Berkley told her colleagues at a House hearing last month on the tourism industry. "Congress must move quickly -- quickly -- on legislation to turn the economic tide."

But the House passed its economic stimulus plan without the Shadegg legislation. He is optimistic it will be accepted by House and Senate lawmakers when they meet to hammer out a final version of the bill, spokesman John Pappas said.

"It would be hard to argue that an industry has been harder hit by the events of Sept. 11 than the tourism industry," Pappas said.

Rep. Jim Gibbons, R-Nev., last week endorsed a bill that ups the ante, offering individuals $1,000 tax deductions for money spent on travel within the nation, plus $500 for vacation meals, lodging and entertainment until the end of the year. It offers an 80 percent business meal deduction until the end of the year, which Gibbons said is more politically realistic than 100 percent.

Despite these scattered efforts -- and others launched by various tourism-state lawmakers -- help for the industry is hardly assured.

Bush administration officials have expressed a reluctance to support significant tourism industry aid. Skeptical lawmakers have pointed to the $15 billion airline industry bailout Congress already approved.

So tourism lobbyists are scrambling.

Congress likely will approve both the meal tax deduction and tourism tax break, predicted Mike Pina, spokesman for the Travel Industry Association of America. Lawmakers look favorably on the tourism tax credit because it is short term, Pina said.

"A number of people in the Senate" support the proposals, he said, not specifying exactly how many.

The association is also pushing proposals to expand the small business loan program; offer workforce tax credits for retraining and hiring tourism industry workers; and offer advertising money to promote travel in the United States. Congress has embraced none of them.