oversight

Corporation for Travel Promotion: Establishment and Planned Programmatic Activities

Published by the Government Accountability Office on 2012-03-21.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

United States Government Accountability Office
Washington, DC 20548




              March 21, 2012

              Congressional Committees

              Subject: Corporation for Travel Promotion: Establishment and Planned Programmatic Activities

              According to the Department of Commerce (Commerce), the travel and tourism industry
              generates nearly $1.1 trillion in economic output for the U.S. economy and supports more than
              7.5 million U.S. jobs each year. Even though the United States received more than 60 million
              visitors in 2010, a 2009 congressional report 1 noted a decline in the U.S. share of the
              international travel market from 9.4 percent in 1992 to 6.2 percent in 2007. Concern over this
              decline led Congress to explore efforts to reinvigorate the tourism industry and recapture lost
              market share. According to the report, government officials and other experts identified the lack
              of a coordinated international marketing campaign as a primary factor contributing to this
              decline. The U.S. Travel and Tourism Advisory Board, which advises Commerce, also cited this
              lack of coordination and recommended the creation of a national tourism policy. To address this
              issue, Congress established the Corporation for Travel Promotion (CTP) under the Travel
              Promotion Act of 2009 to create and execute a nationally coordinated travel promotion
              program. 2 This legislation, enacted in March of 2010, also mandates GAO to review CTP’s
              programmatic activities within 2 years of its enactment.

              As we informed your offices in briefings and other communications on our preliminary findings in
              December 2011, the CTP is in the early stages of planning and is beginning to implement major
              programmatic activities to promote travel to the United States. In this report, we expand upon
              our earlier briefings to describe (1) the status of CTP’s establishment and (2) the activities CTP
              has planned and undertaken to promote travel and tourism to the United States. Enclosure I
              contains our briefing slides from December 2011, which have been updated for clarity.

              To determine the status of CTP’s establishment and the activities CTP has planned to promote
              travel to the United States, we reviewed pertinent CTP planning, budget, and legal documents,
              and interviewed CTP officials. We also interviewed an official with the accounting firm that
              conducted CTP’s first mandated financial audit. We sought to obtain data on the impact CTP
              activities have had on travel to the United States, though such metrics are still under
              development. We conducted this performance audit from September 2011 to March 2012 in
              accordance with generally accepted government auditing standards. Those standards require
              that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a


              1
              S. Rep No. 111-25, 111th Cong., 1st Sess., p. 2 (2009).
              2
              Pub. Law 111-145, sec. 9.




              Page 1                                                     GAO-12-485R Corporation for Travel Promotion
reasonable basis for our findings and conclusions based on our audit objectives. We believe
that the evidence obtained provides a reasonable basis for our findings and conclusions based
on our audit objectives.

Background
The U.S. travel and tourism industry has gone through a series of declines and recoveries over
the last 10 years. Following a steep 3-year decline after the terrorist attacks of September 11,
2001, travel to the United States experienced an annual increase in the number of international
visitors, ranging from 3 to 12 percent annual growth for calendar years 2004 through 2008 (see
fig. 1). After a decline in 2009, Commerce’s Office of Travel and Tourism reported that 2010
was a record-setting year in terms of the number of international travelers visiting the United
States. Notwithstanding the growth in 6 of the last 7 years, the United States has reportedly lost
a significant share of the international travel market over the last decade. According to a study
commissioned by the U.S. Travel Association, an advocacy organization for the travel industry,
international tourist arrivals worldwide grew to 880 million in 2009, up by nearly 200 million since
2000, while overseas visits to the United States fell by 9 percent during the same time period.
According to this study, not keeping pace with the growth in international travel has cost the
United States an estimated $509 billion in lost spending by visitors.

Figure 1: Annual Percentage Change in International Arrivals at the United States, Calendar Years 2000-2010




Note: Data reflect the number of arrivals, not the number of individual visitors. The term “arrivals” reflects the number of times a
passenger arrives in the United States, which maybe more than once per year for any individual.


In an effort to reinvigorate the tourism industry and recapture lost world market share, Congress
established CTP under the Travel Promotion Act of 2009. CTP is not a federal agency; instead it
was conceived as a nonprofit, public-private partnership with the mission of promoting increased
international leisure, business, and scholarly travel to the United States. CTP is charged with
executing a nationally coordinated travel promotion program, which includes accurately



Page 2                                                                             GAO-12-485R Corporation for Travel Promotion
communicating U.S. travel policies and providing international exposure for areas of the United
States not traditionally visited by international travelers. CTP expects to position the United States
as a compelling destination for international travelers and increase visitors by promoting multiple
destinations and attractions in the country through an integrated marketing and communications
strategy. It expects that promotional efforts will result in financial benefits to the U.S. economy,
such as increased spending from visitors and new jobs in travel and related sectors.

U.S. law requires CTP’s annual budget to be provided through a combination of private and
public funds. Fifty percent of the budget is intended to come from private sector contributions. At
least 20 percent of private sector donations must be in cash, while the rest may be in the form of
in-kind contributions. Although CTP is a nonprofit corporation, matching private contributions are
not tax deductible. The other 50 percent of CTP’s budget is funded through matching funds
drawn from the Electronic System for Travel Authorization (ESTA), administered by the
Department of Homeland Security. 3 The ESTA system assesses a $14 fee per foreign visitor
traveling to the United States from visa waiver countries; $10 of this amount is used to fund
CTP. 4 CTP staff noted that, because funding is provided through ESTA fees, no taxpayer funds
are used to establish or operate the corporation. In fiscal year 2012, which by law 5 is the first
year of CTP’s operation in which it can obtain federal matching funds, CTP will receive funding
through ESTA fees that will match private funding at a 2 to 1 ratio; after the first year, federal
funds will match private funding at a 1 to 1 ratio. 6

CTP Has Taken Several Steps to Begin to Promote Travel to the United States but
Is Not Yet Operating at Full Capacity
In September 2010, as directed by the Travel Promotion Act, the Secretary of Commerce
appointed a board of 11 directors to govern CTP. Board members represent private and public
sector areas related to travel and tourism—including lodging, city and state convention and
visitors’ bureaus, small business, travel distributors, airlines, and others. Subsequently, under
the direction of the board, CTP was incorporated in November 2010 as a nonprofit corporation
in Washington, D.C. Once incorporated, CTP was able to initiate operating activities such as
hiring staff and entering into contracts. Thus, the board conducted a search and hired a Chief
Executive Officer (CEO) in May 2011. By December 2011, other senior staff positions had been
filled. With the CEO in place, CTP began operations and has worked to develop strategic
objectives, establish an organizational structure, and plan programmatic activities.




3
 For GAO’s work related to ESTA, see GAO, Visa Waiver Program: DHS Has Implemented the Electronic System for
Travel Authorization, but Further Steps Needed to Address Potential Program Risks, GAO-11-335 (Washington D.C.:
May 5, 2011).
4
 The Visa Waiver Program allows eligible nationals from 36 member countries to travel to the United States for
tourism or business for 90 days or less without a visa. The 36 countries currently participating in the Visa Waiver
Program are Andorra, Australia, Austria, Belgium, Brunei, Czech Republic, Denmark, Estonia, Finland, France,
Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta,
Monaco, the Netherlands, New Zealand, Norway, Portugal, San Marino, Singapore, Slovakia, Slovenia, South Korea,
Spain, Sweden, Switzerland, and the United Kingdom.
5
 Public Law 111-198, sec. 5(b)(5).
6
  After fiscal year 2012, federal funds will match private funding at a 1 to 1 ratio up to $100 million each year from
fiscal year 2013 through fiscal year 2015.




Page 3                                                                     GAO-12-485R Corporation for Travel Promotion
The CEO organized CTP into four teams, each responsible for meeting one of its four strategic
objectives. Led by the CEO, the four teams cover marketing, business development, strategic
outreach, and operations. Specifically,

•   the marketing team is responsible for overseeing and coordinating development and
    implementation of a marketing strategy designed to attract increased international travel to
    the United States;

•   the business development team is responsible for attracting the necessary private
    investment through different revenue programs to encourage participation from the U.S.
    private sector;

•   the strategic outreach team is tasked with maintaining communications with stakeholders,
    which include Congress, the private sector, and the general public; and

•   the operations team has responsibility for general administrative activities, including budget
    operations.

Senior staff are in place for all four teams, as are some support staff. As of December 2011, 14
staff had been hired; CTP officials expect to have a total of 42 staff on board once the hiring
process is completed.

CTP expects to reach a budget of $150 million in 2012 by raising $50 million in private sector
contributions, which would qualify it to receive a match of $100 million in federal funds collected
through ESTA. Of the expected $150 million budget, $110 million would constitute the cash
component of the operating budget, while the $40 million would be in-kind contributions. Since
fiscal year 2012 is considered CTP’s first year of operations, federal funding will match private
sector contributions in a ratio of 2 to 1. As of November 2011, over $4 million in cash and over
$12 million in in-kind contributions had been committed by private sector donors. CTP expects
to reach an annual budget of $200 million within 2 to 3 years, with half of that amount coming
from private sector contributions.

According to CTP staff, of the $110 million in cash in the 2012 budget, 90 percent will be used
to conduct programmatic activities, including contracting an advertising agency to implement a
global marketing campaign. This campaign includes an initial 3-month contract to develop and
launch a brand—the first phase of the global marketing campaign—and a Master Service
Agreement with contractor responsibilities for subsequent core activities of the global marketing
campaign. The initial 3-month contract was an interim agreement allowing the marketing and
advertising campaign to proceed promptly with specific assignments and deadlines falling within
the first 90 days. The Master Service Agreement is a long-term contract that will include the
core activities of the global marketing campaign to promote international travel in the United
States. CTP has chosen J. Walter Thompson (JWT) Worldwide in New York City to develop a
brand and conduct a global advertising campaign. As of November 2011, the initial 3-month
contract to develop a brand has been implemented, and as of early February 2012 CTP was in
negotiations with JWT to sign a Master Service Agreement that will include JWT’s costs and
responsibilities for core activities for the global marketing campaign.




Page 4                                                      GAO-12-485R Corporation for Travel Promotion
CTP Conducted a Structured Selection Process to Contract the Advertising Agency, but
Federal Guidelines that Would Facilitate Evaluation Have Not Been Adopted
Before selecting JWT, CTP hired an international consultant to conduct a search for advertising
agencies qualified to conduct the global marketing campaign. The CTP selection committee
which included board members and staff, selected JWT from among 14 advertising agencies
identified by the consultant using performance criteria that included global brand leadership,
global presence, related sector experience, and account management and operation
capabilities. CTP staff explained that the cost of services was not a leading component of the
performance criteria, but it was one of many business factors considered to rank the agencies
competing for the global marketing campaign contract. CTP staff noted they had considered
cost since the finalist competing agencies all provided draft cost proposals for the 3-month initial
contract. According to CTP officials, although the cost proposals submitted by all finalist
agencies were considered within acceptable range by CTP’s contract review committee, JWT
was the most cost-effective.

After the initial 90-day contract was implemented, CTP entered into negotiations with JWT on
the Master Service Agreement without conducting any further cost comparisons or a bidding
process. CTP officials explained they did this since JWT had already been awarded the initial
contract. According to CTP officials, while certain considerations were given to costs of services
in ranking the agencies competing for the global campaign contract, JWT was not selected
principally based on such costs, but on the extent to which it met CTP’s performance criteria
and on the quality of its work proposal. The Master Service Agreement will include JWT’s costs
and responsibilities for core activities for the global marketing campaign. Under the Master
Service Agreement, the scope of work will be determined on an annual basis and will be based
on agreed-upon services to be provided by JWT for that year. CTP staff stated that under this
contract, JWT will play a key role in developing and implementing the global marketing
campaign.

The Travel Promotion Act of 2009 does not require CTP to follow federal procurement laws and
regulations, but the Act imposes accountability measures on CTP, by requiring the corporation
to engage an independent accounting firm to conduct an annual financial audit of its operations.
Federally chartered nonprofits that receive federal funding, such as CTP, may adopt, as a
matter of good practice, certain federal policies and procedures to guide the implementation of
their programs. According to an official with the accounting firm that conducted CTP’s first
financial audit, the corporation had not decided whether to adhere to federal guidance often
followed by similar nonprofits, such as OMB circulars A-110 7 or A-133. 8 These circulars provide
guidance on financial and program management, property standards, and procurement
standards; and facilitate the conduct of audits and evaluation of the entity receiving federal



7
 OMB Circular A-110, Uniform Administrative Requirements for Grants and Other Agreements with Institutions of
Higher Education, Hospitals and Other Non-Profit Organizations (11/19/1993) (further amended 09/30/1999),
Relocated to 2 CFR, Part 215. This circular sets forth standards for obtaining consistency and uniformity among
federal agencies in the administration of grants to and agreements with institutions of higher education, hospitals, and
other nonprofit organizations.
8
 OMB Circular A-133, Audits of States, Local Governments and Non-Profit Organizations (includes revisions
published in the Federal Register 06/27/2003 and 06/26/2007). This circular is issued pursuant to the Single Audit Act
of 1984, P.L. 98-502, and the Single Audit Act Amendments of 1996, P.L. 104-156. It sets forth standards for
obtaining consistency and uniformity among federal agencies for the audit of States, local governments, and nonprofit
organizations expending federal funds.




Page 5                                                                   GAO-12-485R Corporation for Travel Promotion
funds, respectively. This official explained that, since a determination has not been made
whether CTP would follow these circulars, the audit team did not assess CTP’s contracting
practices, such as the process followed to select JWT, because it lacked criteria for such an
assessment. Therefore, this official noted the scope of the audit was limited to whether CTP’s
financial statements are prepared, in all material respects, in conformity with generally accepted
accounting principles. According to CTP staff, they have not made a determination to follow
OMB circulars A-110 and A-133 because they are seeking legal counsel and are waiting a
determination about their applicability.

CTP Major Programmatic Activities to Promote International Travel Are under
Development
CTP has taken initial steps to implement preliminary programmatic activities to promote
international travel to the United States, but core programmatic activities are still under
development and are expected to be implemented beginning in May 2012. To begin
implementing these activities, CTP with the creative assistance of JWT has created a new
brand identity with a globally relevant name and brand attributes—Brand USA—that will serve
as the platform for a global advertising campaign. Since the introduction of the brand at the
World Travel Market Show in London in November 2011, CTP has been operating as “Brand
USA.” CTP considers launching the brand a major step because this is the brand and logo that
international travelers will recognize as part of the advertising campaign.

CTP’s major planned programmatic activity will be coordinating the global marketing campaign it
is designing and implementing with JWT. According to CTP officials, as Brand USA, they expect
to work with JWT and other partners to execute a marketing program that includes a global
advertising campaign, public relations strategies, a social media outreach plan, promotional and
incentive campaigns, trade shows and sales missions, and educational campaigns for prospective
visitors about U.S. entry policies. CTP expects the global advertising campaign to be launched at
a trade shown known as the International Pow Wow, in Los Angeles in April 2012. The advertising
campaign will include a variety of media types, including television, print, billboards, digital, and
mobile ads. After the trade show in Los Angeles, CTP plans to launch advertising campaigns in
three major markets for U.S. travel, including Canada, Japan, and the United Kingdom, later
followed by emerging markets, such as Brazil and South Korea. 9 The marketing tools and
audiences in each country will be determined by an analysis of existing and original market
research, and tactics will be geared toward the cultural preferences of the markets in which they
are deployed. In addition, CTP officials said they were developing a global network of
representational firms to manage trade press and other communications in various countries.
These firms will disseminate CTP materials in key markets, even where CTP’s advertising
campaign has not been launched. According to CTP staff, not all the components of the marketing
campaign have been developed, and they have not made final decisions on the selection, timing,
and cost of marketing campaigns in all the countries discussed.

As part of their programmatic activities, CTP officials are working on developing metrics to
assess the impact of their efforts in increasing international travel to the United States.
According to CTP staff, they have assembled a panel of industry experts who are working to
select appropriate metrics that will allow them to measure the impact of CTP’s promotion efforts


9
 These target markets were narrowed down from the initial list of potential markets considered by CTP at the time of
our briefing for congressional committees of jurisdiction in December 2011.




Page 6                                                                 GAO-12-485R Corporation for Travel Promotion
and develop a process to determine the return on investment. The panel includes experts in the
area of travel and tourism from federal and state agencies, academia, and the private sector.
The metrics plan is expected to track awareness and perceptions of Brand USA marketing
efforts and messaging, consideration of travel to the United States in response to the Brand
USA marketing, incremental trips originating in the launch markets, and travel behaviors and
attitudes of foreign travelers when traveling to the United States, among other items. CTP plans
to validate its metrics plan with data from various sources, including Commerce’s Office of
Travel and Tourism Industries, the World Tourism Organization, and major credit card
companies such as Visa and American Express. CTP expects to measure success in terms of
the number of new visitors to the United States, increased spending by visitors, and the creation
of new jobs in the United States that CTP can attribute to its activities.

Conclusions
While the Travel Promotion Act of 2009 does not require CTP to follow federal procurement
policies and procedures, the Act imposes accountability measures on CTP. Among other things,
it requires the corporation to engage an independent accounting firm to conduct an annual
financial audit of its operations. However, CTP officials are seeking a legal determination as to
whether the corporation should adhere to policies and procedures such as those in OMB
circulars A-110 and A-133. Since CTP has not reached such a determination, the first external
financial audit of CTP was limited to assessing whether financial statements were prepared in
accordance with generally accepted accounting principles. Other financial decisions undertaken
by CTP officials were not audited, including selection of JWT to conduct the global marketing
campaign, the corporation’s major programmatic activity to date.

Recommendation for Executive Action
To help CTP comply with the accountability provisions established under the Travel Promotion
Act of 2009, GAO recommends that, as a good practice, the CEO of CTP consider adopting
federal policies and procedures such as OMB circulars A-110 and A-133, to the extent possible,
for use in carrying out the corporation’s programs and activities.

Agency Comments and Our Evaluation
We provided a draft of this report for comment to the Chief Executive Officer of CTP. On March
8 and 9, 2010, we received final comments orally and via e-mail from CTP’s Vice-President of
Operations and Deputy Director of Strategic Outreach on behalf of the agency. CTP officials
said that they consider our recommendation prejudicial given that the corporation has sought
external legal counsel and is waiting to obtain a determination on whether CTP is subject to
federal regulations, including OMB circulars A-110 and A-133. As we explained in our report,
such federal policies and procedures as the OMB circulars are to be adopted not as a legal
requirement but as a good practice that is often followed by similar federally chartered
nonprofits that receive federal funding. Adopting such good practices will facilitate future
assessments of CTP financial management and programmatic activities. Allowing for a fuller
and more transparent audit of CTP activities will help ensure that CTP is readily accountable to
Congress for the federal funds it manages. CTP also provided technical comments, which were
incorporated in the report as appropriate.




Page 7                                                     GAO-12-485R Corporation for Travel Promotion
We are sending copies of this report to the appropriate congressional committees, the
CEO of CTP, and other interested parties. In addition, this report will be available at no charge
on the GAO website at http://www.gao.gov. If you or your staffs have any questions about this
report, please contact me at (202) 512-4104 or gomezj@gao.gov. Contact points for our Offices
of Congressional Relations and Public Affairs may be found on the last page of this report.
Major contributors to this report were made by Juan Gobel, Assistant Director, Francisco
Enriquez, Senior Analyst, and Ernie Jackson, Senior Attorney.




Alfredo Gomez
Acting Director
International Affairs and Trade




Enclosure




Page 8                                                     GAO-12-485R Corporation for Travel Promotion
List of Congressional Committees

The Honorable Jay D. Rockefeller IV
Chairman
The Honorable Kay Bailey Hutchison
Ranking Member
Committee on Commerce, Science,
  and Transportation
United States Senate

The Honorable John F. Kerry
Chairman
The Honorable Richard G. Lugar
Ranking Member
Committee on Foreign Relations
United States Senate

The Honorable Joseph I. Lieberman
Chairman
The Honorable Susan M. Collins
Ranking Member
Committee on Homeland Security
  and Governmental Affairs
United States Senate

The Honorable Fred Upton
Chairman
The Honorable Henry A. Waxman
Ranking Member
Committee on Energy and Commerce
House of Representatives

The Honorable Ileana Ros-Lehtinen
Chairman
The Honorable Howard Berman
Ranking Member
Committee on Foreign Affairs
House of Representatives

The Honorable Peter T. King
Chairman
The Honorable Bennie G. Thompson
Ranking Member
Committee on Homeland Security
House of Representatives




Page 9                                GAO-12-485R Corporation for Travel Promotion
Enclosure: Briefing on Preliminary Findings, December 2011




  Corporation for Travel Promotion (CTP)

                                                    Briefing on Preliminary Findings for:

  Senate Committee on Commerce, Science,                                            House Committee on Energy and Commerce
             and Transportation                                                      House Committee on Homeland Security
   Senate Committee on Homeland Security                                               House Committee on Foreign Affairs
          and Governmental Affairs
   Senate Committee on Foreign Relations


                      December 13, 2011                                                                      December 15, 2011




    Note: Some slides in this enclosure were modified after the briefing dates for the purpose of clarity.




                  Page 10                                                                                    GAO-12-485R Corporation for Travel Promotion
Objectives and Methodology


 Objectives
   • What is the status of CTP’s establishment?
   • What activities has CTP programmed to promote travel and
     tourism to the United States?

 Methodology
     To determine the progress made in CTP’s establishment and
     activities CTP has programmed to promote travel to the United
     States we reviewed CTP planning, budget, and legal documents,
     and interviewed CTP officials.



                                                                            Page 2




     Page 11                                 GAO-12-485R Corporation for Travel Promotion
Background


• CTP was created by Congress to help the United States
  capture a greater share of the international travel market
  and the profit it generates.

• CTP was established by the Travel Promotion Act of 2009
  (Pub. Law 111-145, sec. 9). Enacted in March 2010, the
  Act also directs GAO to review CTP’s programmatic
  activities within 2 years of its enactment.



                                                                         Page 3




      Page 12                             GAO-12-485R Corporation for Travel Promotion
Background


 CTP is established as a nonprofit corporation funded through a
 private-public partnership.

  • Public funding is provided through a program known as the Electronic
    System for Travel Authorization (ESTA), which is used to collect fees
    from travelers visiting the United States from countries that do not
    require a visa.

  • As envisioned, the private sector is expected to cover at least 50
    percent of the program’s budget through a combination of cash and
    in-kind contributions.



                                                                                Page 4




     Page 13                                     GAO-12-485R Corporation for Travel Promotion
Status of Establishing CTP

• Sept. 2010: Board of Directors appointed

• Nov. 2010: Incorporated as nonprofit corporation in DC

• May 2011: CEO brought on board, followed by other senior staff

• Aug. 2011: Marketing agency selected for global campaign

• Nov. 2011:
   • CTP implemented its first major marketing activity,
     introducing its new brand name
   • External auditor initiated first mandated financial audit
                                                                               Page 5




      Page 14                                   GAO-12-485R Corporation for Travel Promotion
 Status of Establishing CTP

       CTP Organizational Chart

                                                  Chief Executive Officer

                       Deputy to the CEO



Chief Marketing               Chief Business           Vice-President of         Vice-President of Operations
    Officer                 Development Officer       Strategic Outreach              & General Counsel

   Marketing Team                                   Strategic Outreach Team
3 of 9 positions filled                               3 of 6 positions filled

                       Business Development Team                                         Operations Team
                         2 of 10 positions filled                                       1of 6 positions filled



      Source: GAO analysis of CTP information.                                                             Page 6




             Page 15                                                        GAO-12-485R Corporation for Travel Promotion
Status of Establishing CTP

CTP’s Financial Situation

    Federal funds:
        • $10 million in ESTA funds were approved by Commerce and
          distributed by Treasury for CTP’s first-year start-up costs in 2011.

    Private sector funding:
         • As of Nov. 2011, CTP had received over $4 million in commitments in
           cash and over $12 million in contributions in-kind. (This level of private
           sector financial commitment would allow CTP to qualify for over $32
           million in matching federal contributions.)




                                                                                         Page 7




       Page 16                                            GAO-12-485R Corporation for Travel Promotion
Program Activities

First Major Marketing Activity Implemented:

• Creation of a new brand identity with globally relevant name and
  brand attributes; CTP will operate under this brand.

• Brand USA and logo were introduced Nov. 7, 2011, at the World
  Travel Market Show in London.




                                                                             Page 8




       Page 17                                GAO-12-485R Corporation for Travel Promotion
Program Activities

•   Global advertising campaign
    Global Campaign launch at travel trade   Potential Markets Targeted by CTP
    conference in Los Angeles, April 21,
    2012


•   Trade shows and sales
                                                  Canada
    missions                                                           EU
                                                                                          China Japan
                                              Mexico
•   Social media                                                                        India
                                                                  Brazil

•   Educational campaigns
    regarding U.S. entry policy
                                             Source: GAO analysis of CTP information.

                                                                                                 Page 9




       Page 18                                                    GAO-12-485R Corporation for Travel Promotion
Program Activities
Anticipated FY 2012 CTP Budget Outlays

                     Marketing: 63%
                          • Brand Advertising/Promotions: 59%
                          • Web and Interactive Marketing: 4%



                                                                                                                 Trade Shows: 7%



                                                                                                               International
                                                                                                               Representation: 7%
                                               Other: 7%
           (Industry Relations, Research and Publications)                                             Communications: 5%

                                                                                         Operations : 10%
  Notes:
    •    Totals do not add up to 100% due to rounding.
    •    CTP assumes revenues generated and contributed will provide a budget of $150 million for FY 2012. Of the expected $150
         million budget, $110 million would constitute the cash component of the operating budget, while the $40 million would be in-
         kind contributions.
   Source: GAO analysis of CTP information.                                                                                             Page 10




             Page 19                                                                                GAO-12-485R Corporation for Travel Promotion
Program Activities


How CTP intends to measure success                  Efforts to develop
                                                   performance metrics

•   Number of new visitors to communities       • Plans to convene panel of
    across the country                          industry experts to develop
                                                metrics
•   Increased spending at businesses,           • Will use metrics to seek
    attractions, and destinations               private sector funding

                                                • Expects to increase
•   Number of U.S. jobs created (projected as   collection of Commerce
    tens of thousands)                          survey of departing
                                                travelers




                                                                              Page 11




       (320869)




       Page 20                                  GAO-12-485R Corporation for Travel Promotion
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