U.S. Visas: The Big Picture

Transcription

1 U.S. Visas: The Big Picture For million foreign visitors are forecast to visit the U.S. For 2011 spending is forecast at $152 million by all foreign visitors 5 to 6% growth projected over next 5 years BUT Overseas Visitors (Excludes Canada/Mexico) Have Not Grown million visitors million visitors Why? The U.S.visa issuance system makes it difficult for visitors from the Emerging Markets to secure visas China, India, Brazil, Chile, Argentina United States has a two-track system for issuing business and tourist visitor visas Visa Waiver Program Covers visitors from Western Europe, Japan, Korea, Australia, New Zealand No visitor visa required for up to 90 days ESTA applies Visa Issued by U.S. Consulate Covers Brazil, China, India, Chile, and the Rest of the World Required interview at U.S. consulate Lengthy wait times for interview appointments; limited U.S. consulates overseas $140 application fee 1

2 In 2010, three-times more Chinese visited Europe than the U.S. Number of Visits per Year from China (2010) Source: U.S. Travel and Tourism Advisory Committee Report to DOC Secretary, Feb. 1, 2011, p. 11 2

3 Outbound Tourism from China and Other Emerging Markets is Avoiding the U.S.: Europe currently captures almost 2.3 times more China/Brazil/India outbound tourist travel than the U.S. % Share of Long-Haul Market from Brazil, China, and India (2010) Source: U.S. Travel Association, based on data from Office of Travel & Tourism Industries and Oxford Economics 3

4 There are only 5 Chinese cities with U.S. Consular services The U.K. has 12 and France has 6 Leading Urban Centers in Mainland China (Millions) Source: Travel and Tourism Advisory Board, Report of Travel and Tourism Advisory Committee to DOC, Feb. 1, 2011, p. 14 4

5 Current U.S. Visa processing time in China is excessive Avg. Wait/Processing Time in Calendar Days Number of Visa Processing Locations Source: Report of T&T Advisory Committee to DOC, Feb. 1, 2011, p. 14 5

6 The U.S. Visa Application Process Source: U.S. Government Accountability Office; State Department websites for Brazil, China, India; U.S. Travel Association research 6

7 Visitors from the Emerging Markets of China, Brazil and India are High Per Trip Spenders, Contributing Billions to the U.S. Economy Country Average Travel Spending per Visitor Arrivals to U.S. Total Travel Spending in the U.S. Jobs Supported by Travel to the U.S. China $6, ,000 $5.0 billion 35,500 India $6, ,000 $4.0 billion 28,300 Brazil $4,940 1,198,000 $5.9 billion 42,000 Germany $3,347 1,726,200 $5.8 billion 41,000 France $3,047 1,342,200 $4.1 billion 29,000 United Kingdom $3,001 3,850,900 $11.6 billion 82,100 Source: 2010 data from U.S. Travel Association; U.S. Department of Commerce; Bureau of Economic Analysis; Office of Travel & Tourism Industries 7

8 The key to $15 Billion in new foreign visitor spending is to make it easier for nationals from China, India and Brazil to secure U.S. visitor visas by reducing processing backlogs and bureaucratic requirements. Doubling tourist visitors from the three largest emerging markets China, Brazil and India would be worth $15 Billion in new export earnings and create over 105,000 jobs A conservative $15 Billion increase in foreign visitor spending represents 12.5% of the $120 Billion spent by foreign visitors as a component of U.S. Exports (2010) There are no bilateral air transport barriers to doubling foreign visitors from the 3 emerging markets The U.S. has Open Skies Agreements with Brazil and India The U.S. is negotiating Open Skies with China, but there are substantial unused frequencies under the Current Bilateral. Source: 2010 data from U.S. Commerce Department, Office of Travel & Tourism Industries; U.S. Travel Association, Ready for Takeoff, May

9 Expanding the Visa Waiver Program (VWP) is a medium-term solution One of the most effective ways to attract additional U.S. visitors is to encourage travel from the countries that participate in the Visa Waiver Program (VWP). Under the VWP, visitors are able to travel to the United States for up to 90 days without obtaining a nonimmigrant visa. Japanese and Korean nationals are already eligible to participate in VWP The VWP is also an important security program because it allows the State Department to focus precious visa-screening resources on higher-risk countries. The VWP improves our national security, encouraging secure travel to the United States while enhancing our international competitiveness and advancing important foreign policy goals. Security programs such as Secure Flight, APIS, ESTA, and PNR Access provide the necessary security data on VWP travelers. Source: U.S. Travel Association, Ready for Takeoff, May 2011, p. 18 9

10 Trends in comparison of Chinese and Korean visitors to the U.S. Korean visitors grew rapidly from a relatively large base after VWP admission for Korea. Arrivals 2010 Visitor 2010 Visitors Population Increase vs as % of Population China 1.3B 225, , , , % Korea 48.7M 638, ,394 1,107, , % Due to China s much larger population base, using the Korean post-vwp admission percentage of visitors to the U.S. in proportion to its population on China would equate to approximately 29.5 million visitors annually. Source: DOC/ITA, International Visitors to the United States: Country of Residency, Historical Arrivals ( ). 10

11 Some Immediate Policy Options to Reduce China/Brazil/India Visa Processing Times Extend visa duration period from one to five years for Chinese nationals Exempt visa renewals, students and tour groups from in-person interview requirement Add new visa processors at existing China/Brazil/India consular locations and/or add new visa processing centers in additional Chinese cities 11

12 Visas: Some Recent Developments on Brazil and China Visa Issuances for Foreign Visitors are On The Rise China 1,000,000 visas issued in FY 2011, a 34% increase over FY 2010 Brazil 820,000 visas issued in FY 2011, a 42% increase over FY 2010 Visa Issuance Goals China 2,200,000 visas in FY 2013 Brazil 1,800,000 visas in FY 2013 Visa Wait Times China Down to 3 to 9 days in Nov 2011 per DOS website Brazil Stated as 81 to 105 days in Nov 2011 per DOS website DOS Steps Taken to Date 50 additional officers to each of Brazil and China in 2012 (Now 50 officers in Brazil and 100 in China). Limited non-career appointees with language skills to handle visa processing in Brazil and China. Amb. Locke proposes to Chinese officials that two-year visas should be issued on reciprocal basis New Consulates: No plans to add new consulates in either Brazil (now 4) or China (now 5). Source: DOS/Bureau of Consular Affairs Briefing, Nov. 8,

13 CBP Facilitation: The Big Picture Travel facilitation through U.S. airports is vital for reinvigorating international business and tourism travel which creates U.S. jobs. The President s recent National Export Initiative Report says foreign tourism was worth $120 billion (now $152 billion) annually to the U.S. economy, ahead of agriculture and autos in U.S. export sales. Many airports, including DFW, are experiencing growing delays at CBP passenger processing points. The largest lines tend to occur at the major international gateways. At Newark Liberty, for example, the maximum wait time during March May 2011 was routinely over one hour, with a peak of 110 minutes from 3 to 4 p.m. In the absence of corrective action, the situation is likely to deteriorate further. 13

14 Top Ten U.S. Airports by Longest Customs Wait August 2011 Washington Dulles Chicago O'Hare Houston Bush Miami Airports Los Angeles Philadelphia New York JFK Honolulu Newark Atlanta Maximum Wait Average Wait Minutes Data for the 10 busiest airports for the busiest time period at each airport s busiest international facility. Source: U.S. Customs and Border Protection. 14

15 CBP Wait Times and Off-Hour Staffing are Critical Problems at DFW CBP primary inspection wait times exceeded 30 minutes on 507 occasions year to date, and of those, 97 exceeded 45 minutes. While DFW YE June 2012 total international capacity is projected to increase 2.2% over the prior year, passenger arrivals during the peak arrival period will increase 10.5%. DFW and other airports encounter CBP staffing problems trying to accommodate international flights arriving outside of standard operating hours, e.g. 2 a.m. from a Central America point. CBP airport staffing levels at DFW have decreased to support land border initiatives. 15

16 CBP wait times are a critical problem at DFW Year over year growth during the peak 13:00-18:00 arrival period will be significantly higher. Monthly Inbound International Seat Capacity (13:00-18:00 Arrivals) +9.9% +9.0% +12.5% +11.4% +6.2% +11.9% +7.9% % % +19.4% +13.0% +1.9% Source: Sabre ADI, Innovata Schedules with DFW anticipated new service. 16

17 Steps to Address this Situation CBP funding and airport staffing levels should not be cut for FY2012 or future years Implement CBP port of entry processing standard. At least 80 percent of arriving passengers to clear CBP primary inspection within 30 minutes A CBP processing standard will drive staffing levels at U.S. gateway airports Must be no compromise on CBP security mission. Congress should increase CBP User Fees Customs/Immigration/USDA Fees now $17.50 Combined Per Arriving Passenger Make sound decisions on resources. Transparency on CBP resource allocation decisions. Optimize existing resources (flexible work rules, augment with local resources during peak demand). 17