worked for us. It has enabled us to give the industry the recognition it properly deserves.

The creation of a national tourism policy will assist the States with their travel programs in getting the recognition and financial assistance they need to develop their tourism resources.

We have done a great deal in Tennessee, as have other States, but many States have only begun to recognize what they can do through effective programs to develop their tourism resources.

The Federal policy will serve as a model for many States.

States may enact their own tourism policy, thereby gaining the additional recognition to improve the travel experience and keep it growing as an important part of the economy.

And, I would caution this committee that State governments as well as the Federal Government have a very real concern regarding the travel and tourism industry, and that they should be full partners in the policy formulation process.

For this reason I must recommend that whatever is done, that it be done with provisions for an equal role for State participation as well as the participation of private industry.

This can be accomplished by providing for subcouncils made up of State agency heads to be established along regional lines.

These subcouncils would have both the opportunity and the responsibility of making recommendations to the national council regarding State and Federal activities affecting the travel and tourism industry.

I cannot emphasize too strongly that the States must be equal partners with the Federal Government, and that the expertise which currently exists within the various regional and national travel and tourism organizations be utilized-and that representatives of those organizations be given the opportunity to be an integral part of the policy formulation and decisionmaking process.

The States stand ready to assist the Federal Government in developing a national travel and tourism policy, and building mechanism to implement that policy.

Senator Inouye and I can't say this too strongly from my heart and in representing the National Governors Association-you have provided the badly needed leadership in travel and tourism in Congress.

I am aware of your efforts during the Arab oil embargo when the travel industry was declared nonessential.

Your leadership in these hearings will undoubtedly result in a greater awareness and importance of tourism to the U.S. economy and society.

I applaud your efforts and trust that you will keep tourism as one of your Senate congressional responsibilities.

The State of Tennessee and those Governors I work with in the National Governors Conference are committed to improving travel and tourism, and working with you in the creation of a more effective, better coordinated Federal involvement.

I thank you very much for allowing me to appear here and sent the National Governors Association and the tourism and industry from the State government level. I know that of expertise here and people that are involved directly in and in the industry and from other governmental off

you:

plaud their effort and again say thanks for your effort. I would be happy to respond to any questions that you may have at this time. [The attachment referred to follows:]

TRAVEL AND TOURISM

The travel and tourism industry, with its many diverse components, has become an increasingly important element in the national economy. It is vital at this time that we as a nation grant the tourism and travel industry the attention it deserves. Its importance affects no only the economic stability of the nation but also strengthens the hope of better communications and understanding between all the nations of the world. Its importance as an economic educational, cultural and diplomatic tool has long been underestimated. In many circles tourism is viewed more as an unstructured recreational pastime than as a productive industry.

This attitude is reflected in the fact that there are 115 tourism-related federal programs spread among 50 federal departments and agencies with funding capabilities. Lack of coordination transcends the federal government and is pervasive in tourism-related negotiations among the agencies, state and local governments, and private interests.

Tourism and travel are an economically viable industry which generates thousands of jobs and contributes millions of dollars to the U.S. economy. For 1976, tourism and travel directly generated 3.8 million jobs and, indirectly, an estimated 2 million more, including significant employment of minorities, women, and youth. In addition, for that same year, domestic and foreign visitors spent over $104 billion in the United States, providing $22 billion in wage and salary income and $13 billion in federal, state and local tax revenues. Over $300 million is spent annually by the private sector to promote tourism. The states' contribution is over $65 million, with $17 million used directly for advertising. The federal government, on the other hand, estimates its promotion efforts to be approximately $12 million. Aside from being an industry which offers a diversity of benefits to state and local governments, tourism also serves as a conduit for learning, outside the school system, the many cultures and languages existent in the world. Very often it provides a bridge for better communications and understanding between the different countries of the world.

Because of its importance in economic, educational, cultural and diplomatic terms, the travel and tourism industry requires a new level of attention and consideration within national priorities.

Federal fiscal policies should not discriminate against the tourism and travel industry. Current policies discourage loans and creative development in these areas. The National Governors' Association urges that the travel and tourism industry be treated equally with the other major industries regarding national fiscal policies.

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International travel by American citizens is the fourth largest contributing factor to the imbalance of payments. Accelerated efforts should be made to expand the number of cities with regular and chartered international airline services for passengers and cargo. Only when direct, regular service between cities and overseas markets is improved can this nation realize its full potential. A comprehensive travel and tourism policy should be adopted by federal, state and local governments to maximize the effectiveness of present resources. The lead tourism and travel agency should be given the responsibility of coordinating with state and local governments, as well as private interests, the development of programs promoting domestic and foreign tourism.

Senator INOUYE. Governor, on behalf of the committee, I thank you for your participation this afternoon. You have been extremely helpful.

Like you, I find it extremely difficult to understand why in this administration and all preceding administrations they have never considered tourism to be an important industry. As you cited in your prepared testimony, today the most conservative estimate will indicate that foreign and domestic travelers and tourists spend at least $115 billion a year. The industry provides jobs for about 5 million men and women, jobs that are sorely needed at this time by the minori

ties, by women, and by those who find employment very difficult to get. And yet either by act or by word, it's never been considered a truly important industry.

I note that your State has taken the lead in this area on the State level. Could you tell us what you have done, sir?

Governor BLANTON. Well, the first thing we did in recognizing our State's potential in travel was to create a Department of Tourism at the Cabinet level. We have a Commissioner of Tourism. And in doing so, with a full-time cabinet-level effort that had access both to the Governor's office and the legislature, without a great deal of expenditure of funds-it was a matter of organization—we have doubled the tourism industry in Tennessee in 4 years. It's now a $1.5 billion industry; 47 million people come to Tennessee and, an important fact that you as a U.S. Senator would recognize in dealing with financial affairs of government, it pays 27 percent of our State's government taxes, and that's very important to us, and I believe it will be important to this country to recognize.

We now have 115 programs in the Federal Government scattered in 50 different agencies, with no real coordinated effort to take advantage of the devalued dollar abroad and bring it back to help in our balance of payments, besides give these jobs and pay taxes, too.

Senator INOUYE. At a time in our history when we are deeply concerned with what is happening in the Middle East, what is happening in Moscow and other capitals, I realize that one would feel as though you're imposing upon the President of the United States to request a conference to discuss tourism.

Well, I most respectfully suggest to you, sir, that a message be sent to the President to indicate to the President your concerns and your belief that this industry is worthy of his personal consideration, because I do not believe that this message has been very effectively conveyed to our President. I think it's very important.

We can set up an organizational structure, but if it is not manned with the proper people who are dedicated and who are committed, it will just be a structure on paper. So I would hope that the Governors Association would send some word to the President.

Governor BLANTON. Well, we have passed a resolution in the National Governors Association and in the National Governors Conference. We passed it in the Southern Governors Conference. We also passed in the Southern Governors Conference just a few days ago a resolution recommending that the President be awarded the Nobel Prize for Peace, and I noticed that some comics said there's $100,000 that went along with this Nobel Prize for Peace, and the President asked that it not be in American dollars. I would like, Mr. Chairman, if I could, to have that stricken from the record.

This is what our thrust is; that we can, as people promoting the tourism industry, have a tremendous effect in offsetting the balance of payments, with retrieving these dollars and therefore making them stronger.

To give you an example of that, we took advantage-Tennessee is the most bordered State in the Nation, and yours is the least bordered. We have eight States that touch our borders. During the gasoline shortage, we promoted the idea of taking a short trip from other States to our State to conserve energy, and it worked. But we did that

through an organized Department of Tourism. So you need to take advantage of bad situations. This was a bad national situation, but we took advantage of the fact that we could entice our bordering States to come to our State on short vacation trips, and it worked very effectively.

We, as a Nation, can now take advantage of the devaluation of the dollar abroad because they can buy more with it here than they can over there and bring it back, but we will have to have an organized thrust to do it. We can't make a fragmented approach. Just like the President did at Camp David, it has to be an organized approach to solve a difficult situation.

Senator INOUYE. Well, I hope when the time comes your talent and your expertise will be put to use by the Federal Government.

Governor BLANTON. I'm retiring from government, Mr. Chairman. I'll be happy, as a citizen of Tennessee, to do whatever I can, but not in a governmental capacity.

Senator INOUYE. Well once again, Governor, I thank you for your participation this afternoon. You have been extremely helpful and I will urge my committee members to very carefully read your statement. Governor BLANTON. Thank you, Mr. Chairman.

Senator INOUYE. Thank you very much.

Our next witness represents the U.S. Conference of Mayors, the distinguished mayor of Oklahoma City, the Honorable Patience Latting.

Mayor Latting, it's a great pleasure having you here.

STATEMENT OF HON. PATIENCE LATTING, MAYOR, OKLAHOMA CITY, OKLA., MEMBER, U.S. CONFERENCE OF MAYORS

Ms. LATTING. Thank you very much, Mr. Chairman, and I appreciate so much the opportunity to speak with you and the committee this afternoon on a subject which is of great concern to me and to the U.S. Congress. We appreciate your interest in it very much.

In my own city, as well as in many other cities across the country, tourism is a growing industry, certainly more important today than ever before. Especially in the urban areas it has the potential for creating jobs and generating revenues.

The President's urban policy is intended to improve the impact of Federal programs and policies on cities and to better coordinate Federal action. The establishment of a national tourism policy and an approach for interagency coordinaation is in keeping with the intent of the urban policy.

In developing a national tourism policy, you must recognize tourism in cities as a distinct phenomena and realize that cities are especially important to tourism and travel. Cities are the meeting places of the Nation for entertainment and commerce and they hold high concentrations of our Nation's heritage. Throughout history, cities have served as the intermodal nodes for our transportation systems where goods and ideas are brought to be exchanged and marketed. In the cities of America, from the Empire State Building in New York, to the trolley cars in San Francisco, to the Liberty Bell of Philadelphia, to the National Cowboy Hall of Fame and the Western Heritage Center in Oklahoma City are probably found most of the greatest attractions for travelers, both within the United States and from abroad.

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The tourism and convention industry is becoming an increasingly large segment of the economy of urban America. The industry is labor intensive and provides job opportunities for the traditionally hard-toemploy section of our society, including women, minorities and youth. The tourism industry is nonpolluting and can serve as a basis of capital investment in downtown areas. And, the industry generates badly needed tax revenues for local governments.

The Conference of Mayors recognizes the need for a national tourism policy and fully supports its development. A national policy will call attention to the importance of this growing field and will serve as a focal point for Federal, State, and local coordination. It will cause Federal agencies to consider the impact of their actions on tourism and will reduce the unintentional negative effects that such action may have. In addition, a national tourism policy will serve to encourage State and local governments to develop their own policies and programs relating to tourism and travel development.

After 3 days of hearings and several hundred pages of study, I'm sure that you have a fairly comprehensive list of elements for a national policy. Let me, then, just touch on a few which are of particular importance to cities:

The policy should include a statement regarding the importance of tourism for various areas of the country and for cities in particular. It should make clear that the importance of tourism for these areas is economic, esthetic and environmental as well as for entertainment.

A wide diversity of Federal actions impact the tourism and travel development industry. There is a need to better understand their effects on the industry and its benefactors, and to heighten the awareness of Federal agencies which are affecting and are concerned with tourism. There is a role for State and local governments in travel development and Federal agencies should work with them to develop policies and programs and to plan for the increases occurring in the industry.

There is a need for a range of activities relating to tourism to be undertaken by Federal, State and local governments including: planning, research, data collection and analysis, foreign promotion, and public education.

We have also been asked to comment today on a coordinating mechanism through which the national policy can be implemented. The Conference of Mayors feels that whether the approach is through a new independent agency or an existing department, or both:

It should include participation by all agencies involved in tourismrelated activities-broadly defined including: Commerce, HUD, DOT, EPA, the National Park Service, and others. It must also have a mandate and directive from the Executive Office of the President.

It should have an ongoing consultation role for State and local government and the private sectors-in an advisory capacity, for program and regulation review and for information gathering.

It should oversee a broad range of activities including review of Federal actions, elimination of duplicative programs, and State and local technical and grant-in-aid assistance; and finally,

Any organization assigned this responsibility should be funded at a sufficient level to compare with tourism programs in other countries and to insure that all mandated responsibilities are carried out.