CMT Hearing: Daylight and Destinations: Examining Time, Travel, and Tourism

2025-11-20

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Summary

The meeting primarily focused on the critical role of travel and tourism in the U.S. economy, discussing both its current state and future prospects, alongside a debate on the economic and societal impacts of Daylight Saving Time (DST) adjustments[ 00:06:18 ]

[ 00:09:53 ] . Witnesses provided insights into challenges faced by the industry and potential policy solutions to enhance its growth and mitigate negative influences.

Themes

Promotion of U.S. Tourism and Brand USA

Brand USA, a public-private partnership established by the Travel Promotion Act of 2009, is crucial for promoting the United States to international tourists and has significantly contributed to visitor numbers over the past 12 years. It consistently delivers a high return on investment and operates without U.S. taxpayer dollars, relying on private sector contributions and fees from international visitors. Congress cut Brand USA's funding by 80%, which is seen as detrimental at a time when a unified, welcoming message is needed globally. There is strong support for the bipartisan Visit USA Act to restore full funding to Brand USA, highlighting its importance for showcasing American culture, diversity, and local economies[ 00:33:46 ]

[ 00:35:27 ] .

Economic Impact of Travel and Tourism

Travel and tourism are essential to the American economy, contributing trillions of dollars, creating millions of jobs, and supporting local businesses nationwide[ 00:06:18 ]

[ 00:06:44 ] [ 00:09:53 ] . Hotels, for instance, generate nearly $900 billion in GDP annually, contribute $83 billion in tax revenue, and employ over 2 million workers, supporting one in every 25 jobs. International travelers spend significantly more than domestic travelers, making them a crucial export industry for the U.S. economy. The industry faces challenges from rising operating costs (insurance, interest rates, labor, healthcare), which have increased four times faster than revenue, and persistent staffing shortages, with nearly half of hotels still understaffed. Solutions proposed include increasing the maximum allowable number of supplemental H2B visas and addressing economic factors that deter both domestic and international travel[ 01:14:24 ] .

Daylight Saving Time (DST) Debate

The discussion highlighted the significant impacts of Daylight Saving Time (DST) on various aspects of life and the economy[ 00:07:46 ]

. Research indicates that DST adjustments negatively affect individuals, leading to increased accidents, judicial sentencing, and health issues like heart attacks and brain dysfunction[ 01:54:52 ] [ 01:55:09 ] . From an economic perspective, DST advances dampen investor responsiveness to earnings news, suggesting cognitive impairment and reduced market efficiency, particularly disadvantaging retail investors[ 01:24:39 ] [ 01:24:41 ] . While there's broad consensus against biannual clock changes, there's no agreement on whether to adopt permanent DST or permanent standard time[ 01:22:18 ] . Proponents of permanent DST, especially from industries like golf and hospitality, argue it boosts economic activity by providing more afternoon daylight for recreation and commerce, as Americans overwhelmingly prefer afternoon and evening activities[ 01:21:27 ] [ 01:21:30 ] [ 01:21:44 ] [ 01:26:33 ] . They project significant revenue losses under permanent standard time. Concerns about permanent DST include negative health impacts from disrupted circadian rhythms and potential disadvantages for industries like agriculture that prefer earlier daylight. The difficulty of a "patchwork" of state-specific time observances was also raised, advocating for a uniform federal approach[ 00:47:55 ] [ 00:48:05 ] .

Challenges to International Tourism

International inbound travel to the U.S. is declining, with international arrivals down 3.5% through September and projected to end the year 6% lower than previous expectations. Projections for recovery to pre-pandemic visitor levels have been pushed out to 2029[ 00:51:52 ]

. The U.S. is the only major country expected to see a decline in international visitor spending in 2025, losing global market share to other destinations. Key deterrents include steep fee increases for international visitors, such as a proposed $250 visa integrity fee and increased entry fees for visa waiver and land border travelers. Stricter border and immigration policies, stories of legal tourists being detained, and strained diplomatic relationships create an unwelcoming image and negative sentiment, discouraging travel[ 00:10:38 ] . Long visa appointment wait times also pose a significant barrier, though efforts are being made to address this for major events.

Impact of Mega Events (World Cup, Olympics)

The U.S. is set to host several major international events, including the FIFA World Cup in 2026, the Olympics and Paralympics in 2028 and 2034, and the USA 250 celebrations[ 00:10:19 ]

. These events are expected to be huge draws, driving surges in major and secondary markets, generating tax revenue, infrastructure investment, and workforce development. They present a significant opportunity to bolster the economy, create jobs, and showcase America to the world[ 00:10:28 ] . Hotels and other stakeholders are actively preparing, collaborating with law enforcement and city officials to ensure seamless experiences[ 01:28:45 ] [ 01:28:54 ] . Maximizing the long-term benefits requires consistent messaging and promotion to international travelers, emphasizing that "visitation is not immigration" and ensuring a welcoming environment[ 01:15:29 ] [ 01:15:32 ] [ 01:15:36 ] .

Impact of Regulations and Policies on Tourism

Government policies and regulations significantly influence the tourism industry. Recent government shutdowns, for example, cost the hotel industry alone over $1.2 billion in lost economic activity and hurt communities. Proposed policies such as higher entrance fees for international visitors to national parks and a bill to codify an international visitor surcharge are viewed as prohibitive and unwelcoming. The American Franchise Act is supported to provide clarity and protection for the franchise relationship, which forms the backbone of 60% of U.S. hotels[ 02:00:34 ]

. Additionally, the importance of addressing rising costs for American families, which can force them to cut back on travel, was highlighted. The Bipartisan Hotel Fees Transparency Act is also seen as crucial for ensuring travelers understand the total cost of lodging upfront[ 01:05:00 ] .

Tone of the Meeting

The tone of the meeting was largely concerned but constructive[ 00:51:20 ]

[ 00:51:38 ] . There was a shared recognition of the economic importance of travel and tourism and the challenges it faces, prompting calls for bipartisan legislative solutions. While differing views were expressed, particularly regarding the specifics of Daylight Saving Time, there was an underlying desire for consensus and practical solutions to benefit the U.S. economy and its citizens[ 01:22:37 ] . Speakers often expressed pride in their local and state attractions, reinforcing the value of tourism across diverse regions[ 00:06:27 ] [ 00:10:00 ] [ 00:57:17 ] [ 01:13:43 ] [ 01:28:16 ] [ 01:33:10 ] [ 01:51:58 ] .