Berkley proposes help for tourism

Benjamin Grove

Wednesday, Oct. 17, 2001 | 10:28 a.m.

WASHINGTON -- To revive the flagging tourism industry, Congress should allocate new small-business loans, give travelers a $500 tax credit and make business meals 100 percent tax deductible, Rep. Shelley Berkley told House colleagues today.

Berkley, D-Nev., testified that the economy in her Las Vegas district continues to suffer ripple effects of the Sept. 11 terrorist attacks.

"My district will likely lose 20 percent of its convention business in the coming months," Berkley today told the House Subcommittee on Commerce, Trade and Consumer Protection, which had convened to assess the state of the tourism industry.

"Revenues from casino entertainment, shopping, showrooms, lodging and dining have plunged," Berkley said.

Congress is considering a wide array of terrorism-related legislation, including measures aimed at jumpstarting the tourism industry.

But with lawmakers debating a number of spending priorities -- having already doled out $15 billion to airlines -- it's not clear how much help they will be willing to give the travel industry.

The $600 billion tourism industry and related businesses employ 17 million workers in the United States, producing roughly 5 percent of the nation's gross domestic product, subcommittee chairman Rep. Cliff Stearns, R-Fla., said.

Business leaders from amusement park, cruise line, hotel, and other sectors pleaded with the committee for swift action. Industry officials sought help in the Senate last week asking for grants, government-backed loans and federal spending to promote travel.

Travel Industry Association of America president William Norman told the House panel today that the industry needs: federal funding for tourism advertising campaigns; a workforce tax credit for re-training and hiring tourism workers; COBRA health insurance assistance; and a proposed $500 tax credit that could be applied to personal travel.

Lawmakers from Hawaii, Florida and Guam joined Berkley at the witness table today. Rep. Ric Keller, R-Fla., said Orlando had been "devastated" with a 55 percent spike in unemployment claims since the attacks. Hawaii's international tourist rate dropped 78 percent in the two weeks after the attacks and is still down 47 percent, Rep. Neil Ambercrombie, D-Hawaii, said.

Berkley also made a plea for lawmakers to extend health care benefits to newly laid-off workers.