TourOperatorLand Comes to Life at World Travel Market: Thirty U.S. destinations and attractions who are partners of the NAJ Group on TourOperatorLand.com website will be live and in person next week (Nov. 6-8) World Travel Market in London to answer tour operator questions about new hotels, group friendly dining options and help customize itineraries to the needs of their clients. So, view mini-profiles of those who will be there to help click here: http://conta.cc/2ix5ghv. Additionally, NAJ’s intrepid reporter will be “walking the floor” posting daily photos of the American pavilion on our Facebook account. To stay up with the latest, join our TourOperatorland.com facebook page here. https://www.facebook.com/TourOperatorLand/?ref=settings
Park Service Plans to Triple Tour Bus Entrance Fees at Top Parks
Operators could pay as much as $1,200 for largest buses during peak season: The U.S. National Park Service announced last week that it is proposing to increase tour bus entrance fees at some of the nation’s most popular and increasingly overcrowded national parks, and it has predictably met with some concern among the millions of people who visit the facilities, as well as the U.S. tour operators, receptive tour operators and international tour operators who promote and sell national park product.
The NPS says that 80 percent of the commercial tour entrance fees remain in parks that collect them. The other 20 percent is spent on projects in other national parks. NPS would expend the funds on projects and activities that further the mission and purpose of the NPS, with an emphasis on deferred maintenance. That is, the NPS says it has a $12 billion backlog of projects.
Major Associations Taken Aback: Pam Inman, president of NTA, told us that the organization and its tour operators were “concerned about the reasonableness and size of the proposed increase.”
NTA has had a longstanding agreement with the National Park Service, she explained, that the association would be notified 18 months ahead of any entrance fee increases so our members could implement pricing adjustments. “This is critical for our members and their customers,” she noted, “as companies book tour groups months in advance. With this recent announcement of the proposal to establish seasonal pricing on many of the most visited parks, NTA is concerned how this will impact not only our tour companies but also those area supplier members who serve their travelers.”
Inman pointed out that the proposed change “has no reasonable implementation period of the fee increase, with only a 30-day public comment period,” she said, while announcing that NTA has formed a coalition with other industry organizations to express the industry’s concerns.
Meanwhile, the International Inbound Travel Association (IITA) echoed NTA’s concern, with spokesperson Lisa Simon—she’s IITA’s executive director—saying that the organization was “shocked at the proposed peak-season commercial tour entrance fee structure. While we have advocated for (the Park Service’s) standardized Commercial Use Authorization (CUA) fees and processes, these proposed increases – which could be more than 400 percent during peak season for one motorcoach tour group – are outrageous.”
“We have consistently advocated for more funding for the National Park Service to address serious backlogged infrastructure issues, so we’re not opposed to reasonable fee increases,” she said. “However, this proposal is not the answer. We will provide comments on the proposal by the November 23 deadline and will encourage our members to do the same.”
It’s More than just Entrance Fee Increases: The entrance fees are part of a package of what one might call a realignment in the way the NPS conducts business with the tour operator community. In the report that explained the proposal, the NPC pointed out that The Omnibus Budget Reconciliation Act of 1993 amended the Land and Water Conservation Fund Act of 1965 by requiring the Secretary of Interior to establish a commercial tour fee “…to be imposed on each vehicle entering (each unit of the National Park Service for which an entrance fee is charged) for the purpose of providing commercial tour services within the unit.”
The NPS has not updated the commercial tour entrance fee schedule since implementation in 1998. Beginning May 1, 2019 all parks that have a vehicle entrance rate must charge the commercial tour entrance fees based upon the most recent Commercial Vehicle Fee Schedule below. Parks that have a per person entrance rate only will charge the per person fee.
The Park Service is also proposing to implement peak-seasonal commercial tour entrance fees at 17 national parks. The peak-season for each park is defined as its busiest contiguous five month period of visitation. The proposed new fee structure will be implemented in Arches, Bryce Canyon, Canyonlands, Denali, Glacier, Grand Canyon, Grand Teton, Olympic, Sequoia & Kings Canyon, Yellowstone, Yosemite, and Zion National Parks with peak season starting on May 1, 2019; in Acadia, Mount Rainier, Rocky Mountain, and Shenandoah National Parks with peak season starting on June 1, 2019, and in Joshua Tree National Park with peak season starting on January 1, 2020. Proposed peak-season commercial tour entrance fees are below.
The proposed entrance fee increases are part of several changes in Park Service policy developed, the NPS says, “in response to feedback from the commercial tour industry.” Other proposed revisions will change its Commercial Use Authorization (CUA) permitting policies. “A number of road-based commercial tour1 providers operate in more than one park unit and expressed frustration over inconsistencies in the NPS CUA program,” the NPS explained. “Currently, operators must deal with varying CUA fees and lack of a standard CUA application process. This lack of consistency has led to tour operator confusion.”
The Park Service invites the public to comment on the proposed changes to commercial tour requirements and fees. Public comments will be accepted until November 23, 2017. To submit written comments, mail comments to: National Park Service, Recreation Fee Program, 1849 C Street, NW, Mail Stop: 2346 Washington, DC 20240.
NOTE: There has never been a charge to enter the Great Smoky Mountains National Park, the most visited (more than 11 million a year) park in the system. This is because a property deed restricts the Great Smoky Mountains facility from charging admission. Nearly 1,200 landowners parted with their land to make the park in 1936. In 1951, when the state of Tennessee handed over control of the highways that run through the Smokies, it stipulated that the park had to be free for everyone to visit. Specifically, “no toll or license fee shall ever be imposed,” which is generally how National Parks generate revenue.
Is the Trump Slump His Fault?
The speculation over whether there is a causal relationship between the actions of U.S. President Donald Trump and the anemic performance this year of the inbound tourism industry in the United States spiked again early last week— as it has done every so often during the past year—with the publishing of the newest poll or set of survey results that show certain country markets (and/or the overall international inbound travel market) are sending fewer people to the USA.
So, the situation poses the question: Are President Trump and the policies he advocates causing international travelers not to visit the United States?
The question requires two answers. First, President Trump’s policies (and, it seems, his personality) are, in part, responsible for a slump in the amount of inbound travel to the United States—more for some country markets than for others. And, second, the real damage and impact of the Trump Slump might be systemic and long-term. That is, the damage could be long-term and require years to repair. Some further thoughts on the two answers follow.
- Yes, Trump’s Policies Have an Impact
First, the latest statistical salvo came early last week with the release of study from ForwardKeys—a young Valencia, Spain research and marketing company that has received a lot of attention of late because of the model it uses to develop its findings—showing that, since Jan. 27, 2017, when President Trump announced what turned out to be the first of three bans on travel from mostly Muslim-majority nations, there had been a 1.4 percent decline in international visitors vs. the same period in 2016.
(At about the same time the ForwardKeys report came out, a federal judge blocked implementation of the latest version of the Trump travel ban, which was directed at the citizens of Chad, Iran, Libya, North Korea, Somalia, Syria, and Yemen — and some Venezuelan government officials and their families.)
Meanwhile, from our own prepared tables, based on the preliminary results of the surveys of the U.S. National Travel and Tourism Office (NTTO), we found the drop-off in travel to the USA from abroad—though for a slightly different time period in 2016 and 2017—to be even greater than that calculated by ForwardKeys.
What about the Strong U.S. Dollar and its Impact?
While the dollar has had an impact for the past two-plus years, a recently stronger Canadian dollar and euro have actually produced increases in visitor numbers from Canada and some European nations (France, Spain, Italy and the Netherlands). Otherwise, the decreases shown in the above table would be even greater.
- The Impact will also be Long-Term
When one contemplates the decrease in visitor numbers reflected in the ForwardKeys study and the data furnished by NTTO, it becomes clear that the impact of the Trump travel ban has extended well beyond the capacity of the eight nations affected as, collectively, they send few visitors to the United States. But each time the globally unpopular travel ban gets mentioned in news reports, according to one article, “travelers around the world are turned off and shy away from visiting this country.”
This effect has been especially pronounced in Mexico, where public opinion on President Trump’s overall positions on immigration reflects outrage, as well as an all-time record low for approval of a U.S. President; earlier this year, Trump registered a 5 percent approval rating among Mexicans. (Meanwhile, visitation to the United States for the first five months of 2017 was down by 6.1 percent vs. the same period last year.)
But worse is the corresponding attitude that Mexicans have about the United States as a whole. Among Mexican, the percentage who have a favorable perception of the United States is the lowest it’s been in the past 15 years, while the percentage of those who have an unfavorable perception of the United States has reached an all-time high for the same period.
ut, in Spite of all of the Above … the USA is still No. 1: At NAJ’s recent RTO Summit six weeks ago in Orlando, David Reichbach, director of analytics and data security for San Francisco-based Destination Analysts, highlighted some findings from the company’s 2017 State of the International Traveler report showing just how well the USA fares as a destination. For the report, Destination Analysts surveyed 14 U.S. feeder markets: Canada, Mexico, Brazil, China, Japan, India, Australia, Germany France, UK, Argentina, South Korea, Netherlands and Italy. Overall the company tracks more than 65 America destinations by familiarity, appeal, likelihood of visitation, promotional buzz and “bragging rights.” Following are two tables which show that the USA remains a durable and desirable destinations from the 14 key markets.
At a Glance: Atlanta
Inbound Arrivals to Canada is Setting Records
Destination Canada, the official tourism promotion agency for the country, has issued its latest monthly graphic (the full monthly reports follow by a couple of weeks) showing that, for the peak season-closing month of August, a half-dozen of its 11 targeted country markets had their best August ever in the number of visitors they send to Canada.
At a Glance: August Arrivals to Canada
August 2017
Numbers from Mexico Soar: For seven consecutive months, the increase in the number of visitors to Canada from Mexico has been in percentages that are in the high double digits with August totals setting a record for the month—nearly 38,000.
Is the increase in Mexican visitation at the expense of the USA? Meanwhile, for the nearest comparable period between the U.S. and Canada—arrivals figures from the U.S. National Travel and Tourism Office are available for the first five months of 2017—inbound traffic from Mexico to the USA has fallen by 6.1 percent; in hard numbers, this is a decline of 441,000 visitors vs. the same period in 2016. At the same time, the market from Canada seems to be recovering following two consecutive years of contraction.
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