Travel, Tourism Industry Takes Another Blow Under Proposed INS Visa Rules; Advocacy Testifies on Small Businesses' Behalf

6/19/2002

From: John McDowell of the U.S. Small Business Administration Office of Advocacy, 202-205-6941, john.mcdowell@sba.gov; http://www.sba.gov/advo

WASHINGTON, June 19 -- Proposed Immigration and Naturalization Service (INS) rules for tourists entering the United States may be "economically devastating to small businesses in an industry that has yet to recover from the tragedy of September 11," said Thomas M. Sullivan, Chief Counsel for Advocacy, today in testimony before U.S. House of Representatives Committee on Small Business.

The proposed INS rules may keep foreign tourists from knowing how long they can stay in the country until they actually arrive in the United States. "If foreign visitors decide to travel elsewhere due to the uncertainty in this new visa policy, the travel and tourism industry could lose billions of dollars," said Sullivan. In 2000, foreign visitors boosted the economy with $70 billion in spending.

According to Sullivan, the INS did not "consider the impact that the proposal may have on members of the travel industry." The travel and tourist industry is dominated by small business, with many of them still suffering from the downturn in travel after the terrorist attacks. For instance, 95 percent of travel agencies, 84 percent of tour operating companies, 93 percent of sightseeing bus companies, and 99 percent of souvenir shops are small businesses.

Protecting our borders is vital to the security of every American. Advocacy strongly supports homeland security measures that will increase our national security. Advocacy also supports measures that will increase our economic security, which includes maintaining the health of small business. To help this balance, Sullivan said that the INS should have considered less restrictive alternatives to the proposed changes in the minimum admission period of visitors with B-2 visas (tourists).

Sullivan testified on behalf of affected businesses as part of the Office of Advocacy's on-going effort to listen to the needs of small business. Advocacy first learned of the potential problems from travel and tourism representatives during a House Small Business Committee outreach session held in Washington. Advocacy responded by asking the INS to reconsider its proposed regulations and by working with the Small Business Committee to explore effective, although less burdensome, alternatives to the rules.

For more information, visit the Office of Advocacy Web site at http://www.sba.gov/advo.

------ Created by Congress in 1976, the Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. The Chief Counsel for Advocacy, who is appointed by the President and confirmed by the U.S. Senate, directs the office. The Chief Counsel advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policy makers. Issues are identified through economic research, policy analyses, and small business outreach. The Chief Counsel's efforts are supported by offices in Washington, D.C., and by Regional Advocates. For more information on the Office of Advocacy, visit http://www.sba.gov/advo, or call 202-205-6533.