CONTACT: Caleb Tiller | 703-684-0836 Ext. 138
Alexandria, VA (January 28, 2005) -- The National Business Travel Association (NBTA) today voiced its opposition to a reported proposal to increase the federal security fee assessed on air travelers, often referred to as the September 11th Security Fee. NBTA sent letters to the President of the United States and the Chairmen and ranking members of the Senate Finance Committee; the Senate Commerce, Science, and Transportation Committee; the House Ways and Means Committee; and the House Transportation and Infrastructure Committee, explaining the negative impact of such an increase on the travel industry and the American economy.
The President’s proposed budget, which is expected to be submitted to Congress within two weeks, reportedly calls for increasing the air travel security fee from $2.50 to $5.50 per segment, with a maximum of $8.00 per one-way trip, up from $5.00. NBTA estimates that this increase will cost businesses more than $400 million on domestic travel each year.
NBTA President & CEO, Carol A. Devine, CCTE, said, “NBTA believes that travel security is national security and should be funded by the government just as other national security programs. Travel is an essential component to the American economic engine and should not be discouraged by yet another tax. An additional tax levied against price-sensitive passengers and businesses just as the aviation industry is beginning to recover from the toughest period in its history is not only unfair but reckless.”
NBTA Executive Director & COO Bill Connors, CTC, added, “NBTA recognizes the importance of air travel security, but we do not feel a travel tax increase is the appropriate way to raise funds for new security measures. Air travel is already taxed higher than almost anything else Americans buy. The average ticket purchase includes taxes and fees totaling 26 percent of the base cost — higher than the so-called sin taxes that are designed to suppress demand. Why would we want to suppress demand for travel?”
Travel is one of the most important segments of the American economy, employing one in seven workers in the U.S. The economic importance of travel touches all segments of the economy, because all businesses depend on travel to accomplish key business objectives. In 2003, domestic business travelers spent $153.2 billion, nearly one-third of all money spent on travel in the US.
This security fee increase would come on the heels of an increase in the Agriculture and Plant Health Inspection Services (APHIS) agricultural quarantine and inspection fee charge to travelers and airplanes entering the US, effective January 1, 2005. That increase is estimated to cost international business travelers entering the United States and their companies an additional $500 million in the next six years.
The overall impact of the high fees and taxes levied on travel needs to be assessed with input from representatives of the travel industry. NBTA proposes that a national advisory board be created to facilitate such input on all legislation and regulation that affect travel. As the representative of the corporate travel industry, NBTA would welcome the opportunity to sit on such a panel.
The National Business Travel Association is the source for critical information on the business travel industry. For more than 35 years, NBTA has dedicated itself to the professional development of its members through advocacy, education and training, and networking opportunities. NBTA represents over 2,500 corporate travel managers and travel service providers, who collectively manage and direct more than $170 billion of expenditures within the business travel industry.
###