Karen Kerrigan is president & CEO of the Small Business & Entrepreneurship Council.
Even in "normal" economic times, small business owners are forced to navigate countless challenges in order to stay competitive and successful. But these are not yet normal times, albeit more normal than the pandemic years, as challenges remain complicated for many businesses and industries, particularly for those reliant on tourism.
With many COVID-related travel restrictions lifted at home and abroad, along with a record-breaking travel rebound this summer, one would think travel-related businesses would be well on their way to making up for economic losses fueled by the virus' spread.
However, newly released estimates reveal that visa wait times for visitors from abroad is a key barrier to the full recovery of travel dependent businesses.
According to the U.S Travel Association, delays by the State Department in issuing visas could prevent 6.6 million people from traveling to the U.S. this year alone, resulting in spending losses of $11.6 billion. The same research found that most international travelers cite the cumbersome visa process as the biggest deterrent to visiting our shores. What should be a tool to attract overseas visitors to spend time and money in our country has now become a huge barrier to U.S. travel.
The U.S. only accepts visitors from a handful of countries whose citizens do not need a visa in order to visit our country. The remaining many must apply for a visa in their home country. While it varies, many visitors can expect many months of waiting and even year-long backlogs just for an interview.
In comparison, many of our international peers offer a much less burdensome process for tourists and business visitors. The average wait time for a tourist visa interview in the U.S. is 28 weeks. In the United Kingdom, it is less than seven weeks. In Australia, 90 percent of appointments are conducted in less than six weeks. With the potential of waiting over 100-plus days for an appointment, it is no wonder many foreign tourists are ditching their plans to travel to the U.S. and taking their money elsewhere.
If this was not frustrating enough, the U.S. State Department's plodding runs counter to other government agencies that are working to boost U.S. tourism. The Department of Commerce released a 2022 National Travel and Tourism Strategy that is focusing federal government efforts on promoting the U.S. as a premier destination. The effort aims to welcome 90 million international visitors, who are estimated to spend $279 billion by 2027. Alternatively, the State Department has yet to fully address staffing shortages that were the result of the lower level of visa processing during the pandemic.
Many businesses that scraped by and grinded it out through the pandemic are still digging their way back to financial health and "normalcy." The residual effects are still with us in the boarded-up windows and storefronts in many cities and downtowns, places that would benefit from a boost in tourism and tourist spending.
Travelers are an invaluable component of economic development, especially in locales such as New York City, Los Angeles, and Washington, D.C. These are the very same areas where the great debate rages on about getting workers back in the office (at least for a few days of the week). How about bringing the overseas tourist back? They actually want to come voluntarily.
Leadership is needed now within the Biden administration to resolve the unprecedented and problematic delays. The nominee for the Deputy Secretary of State is scheduled for a hearing this month. Members of Congress need to inquire about this issue, probing why there is no movement on implementing minor changes to expedite the issuance of tourism visas.
Getting back to business by issuing visas on a timely basis would surely demonstrate that our government can work, and it would be a big boost to our economy and those businesses who suffered long enough through the pandemic.
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