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GBTA 2012 Government Relations Agenda

Patty Higginbotham Vice President, Government Relations and General Counsel September 20, 2012

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What We’ll Talk About Today…

• Advocacy – Why It Makes a Difference

• Business Travel – Drives Economy and Jobs

• GBTA 2012 Priorities – Your Bottom Line Matters

• 2013 Legislative Symposium

• Chapter Challenge/PAC

• Next Steps

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GBTA Represents the Collective Voice of the Business Travel Industry in Washington, D.C.

• Policy, Tax and Funding Decisions Made by Congress and the Administration Impact the Success of the Industry

• Educating Members of Congress About the Industry and How It Drives the Economy and Jobs Is Essential

• GBTA Member Support Is Key!

YOU CAN MAKE A DIFFERENCE

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“Political Action is the Highest Responsibility of a Citizen."

- John F. Kennedy

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GBTA Influencing the Debate

• Supporting Expansion and Full Funding For TSA PreCheck, CBP Global Entry

• Supporting Full NextGen Funding

• Supporting Pending Bills To Stop Local Car Rental Taxes

– Testified at House Judiciary Committee Hearing

• Supporting Bill to Expand the Visa Waiver Program and Fund Visa Process Improvements

• Supporting Bill to Eliminate Redundant Screening from PreClearance Airports

• Supporting National Travel And Tourism Policy That Recognizes Importance of Pro Business Travel Policies

• Supporting Bills Opposing EU Emissions Trading Scheme

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GBTA and Business Travel Industry WINS

FAA Reauthorization

– Long-term, Stable Funding for Safety Programs

– Acceleration of NextGen Implementation

– Additional Passenger Protections

– No PFC Increase

Expansion of TSA PreCheck

– At Least 28 Additional Airports in 2012

Expansion of CBP Global Entry

– Global Entry Kiosks in 37 airports

– Pilot Program Made Permanent

No Security Fee Increase/No New Departure Fee

Visa Improvements

– Executive Order Expediting Application Process/Adding VWP Countries

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Business Travel Industry: Potential 2012 Risks

• Aviation Security Fee Increase/New Departure Fee

• Insufficient Funding for TSA PreCheck and CBP Global Entry

• Erosion of Business Travel/Meetings Deduction

• Delay in NextGen Implementation

• Increased State/Local Rental Car and Hotel Taxes

• More International Emissions Taxes

• Congress is Looking Hard for More Revenue… We Don’t Want to be a Target

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Business Travel: Vital to U.S. Economy

• $250 Billion U.S. Spend

• 30 Percent of all U.S. Travel Spend

• 8 Million Travel/Tourism-Related U.S. Jobs

• 1 in 10 U.S. Jobs Supported by the Travel/Tourism Industry

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Business Travel : Vital to World Economy

• $1 Trillion Worldwide Spend

• International Travel Outpaced Domestic Travel

• Responsible for 30 Percent of the Growth in Global Trade Over the Past Decade

• Good Return on Investment: Every $1 Increase in Business Travel Spending Increases Company Profits by $20 on Average

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Increased Business Travel = Increased Jobs

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GBTA Business Travel Index™ andUS Employment

137

139

141

143

145

147

95

100

105

110

115

120

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2005Q2 2007Q2 2009Q2 2011Q2

US Employment

GBTA BTI™

GB

TA

BT

I™

US

Em

plo

yment (m

illio

ns)

Sources: Business Travel Quarterly Outlook – US, GBTA Foundation (January 2012)

Bureau of Labor Statistics, United States (December 2011)

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GBTA 2012 Priorities: Simpler, More Affordable Business Travel

Safe, Fast and Secure Passenger Screening

• Expand/Fund TSA PreCheck and CBP Global Entry

Fair Taxes and Fees

• No Fee Increases or New Fees

• Stop Discriminatory State and Local Travel Taxes

Efficient and Accessible Travel Infrastructure

• Accelerate NextGen – Reduce Flight Delays

• Expand Visa Waiver Program/Improve Visa Processing

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No Hassle Fly Act… You Made a Difference Last Week

• House Bill to Eliminate Repeat Screening of Checked Bags from Pre Clearance Airports

• ACTION ALERT Resulted in Over 150 Letters to House Members Urging Support

• Bill Passed House

• Introduced in the Senate

TAKE ACTION

http://capwiz.com/nbta/home

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ASAC Risk-Based Security Committee

• Key Advisory Committee to TSA and DHS

• Focus on Expanding PreCheck in Every Direction

• Other Risk-Based Policies on Table

• Chair: Mike McCormick, GBTA

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...Fly Through Airport Security Checkpoints

• Voluntary Passenger Pre-Screening Initiative −TSA Can Focus on Higher-Risk Passengers −Element of Unpredictability/Randomness

• Currently in 26 Airports • Including Cincinnati, Detroit, Indianapolis

• Expedited Screening Could Include No Longer Removing:

−Shoes and Belt, 3-1-1 Compliant Bag from Carry-on Bag, Laptop from Bag and Light Outerwear/Jacket

• Global Entry Enrollment = PreCheck Enrollment

• Fall 2012: Full Funding

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Global Entry Program • Expedited Clearance for

Pre-approved, Low-risk Travelers on Arrival in the U.S.

• Currently Operating in 37 Airports

• Automated CBP Entry Process using Kiosks

• Open to U.S. Citizens, Lawful Permanent Residents, Dutch Citizens, Korean and Mexican Nationals.

• Canadians Receive Global Entry Benefits through NEXUS Program

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Global Entry Enrollment

• Global Entry Enrollment EQUALS Enrollment

• Enter “PASSID” Number in Airline Profile Pages “Known Traveler” Box

• Fall 2012: Full Funding

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Global Entry at Detroit

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Global Entry Locations

Boston-Logan International Airport (BOS)

Calgary International Airport (YYC)

Charlotte-Douglas International Airport (CLT)

Chicago O'Hare International Airport (ORD)

Dallas/Ft. Worth International Airport (DFW)

Denver International Airport (DEN)

Detroit Metropolitan Airport (DTW)

Dublin Airport (DUB)*

Edmonton International Airport (YEG)

Ft. Lauderdale/Hollywood International Airport (FLL)

George Bush Intercontinental Airport, Houston (IAH)

Halifax Stanfield International Airport (YHZ)

Hartsfield-Jackson Atlanta International Airport (ATL)

Honolulu International Airport (HNL)

John F. Kennedy International Airport, New York (JFK)

Los Angeles International Airport (LAX)

McCarran International Airport, Las Vegas (LAS)

Miami International Airport (MIA)

Minneapolis/St. Paul International Airport (MSP)

Montreal Pierre Elliott Trudeau International Airport (YUL)

Newark Liberty International Airport (EWR)

Orlando International Airport (MCO)

Orlando-Sanford International Airport (SFB)

Ottawa Macdonald-Cartier International Airport (YOW)

Philadelphia International Airport (PHL)

Phoenix Sky Harbor International Airport (PHX)

Raleigh-Durham International Airport (RDU)*

San Antonio International Airport (SAT)*

San Diego International Airport (SAN)*

San Francisco International Airport (SFO)

San Juan-Luis Muñoz Marin International Airport (SJU)

Seattle-Tacoma International Airport-SeaTac (SEA)

Shannon Airport (SNN)*

Toronto Pearson International Airport (YYZ)

Vancouver International Airport (YVR)

Washington-Dulles International Airport (IAD)

Winnipeg James Armstrong Richardson International Airport (YWG)

* No enrollment center

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FAA Reauthorization FINALLY!

• Move from Outdated Ground-based to Satellite-based (GPS) Air Traffic Control

• No PFC or Ticket Tax Increases

• European GHG Trading Scheme Opposition Language

• Performance Metrics and Consumer Protections

• Fall 2012: Full Funding

Faster Flights and Less Delays, Cancellations and Fuel

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NextGen – Beginning of the End for Traffic Jams

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Washington, D.C.

Boston, MA

Optimal Route Burn 5883 pounds

Actual Route flown

Actual Route Burn 7376 pounds

Additional Fuel Burn Due to Reroute 1493 pounds

Large Air Carrier: DCA to BOS

Optimal Route

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What Do These Have in Common?

• Budget Deficit

• Performing Arts Center

• Police Station

• Highway Construction

• Sewage Treatment Facility

• Culinary Institute

• Baseball Stadium

• General Revenue

• Convention Center

• Domestic Security

• Police Radios

• Basketball Arena

• Art Museum

• Fire Station

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Fighting Discriminatory Car Rental Taxes...Taking on Price Gouging of Business Travelers

• 118 Taxes in 43 States

• 800% Increase Since 1990 Taxes Used for Non-Travel Purposes – Museums and Stadiums

• Similar Protections Given to Air, Train and Bus Tickets

• GBTA Testifies at House Judiciary Committee

• Bad Actors – MN, NV, IL, OR, MA

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Fall 2012 – Greatest Risks

• Aviation Security Fee Increase

• Sequestration/Deficit Reduction Targets

• Funding Decrease for PreCheck, NextGen, Global Entry and Visa Reforms

• Elimination of Tax Benefits/Deductions

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More About Government Relations…..

GBTA Website

MOST IMPORTANT - What You Can Do to Engage, Issue Briefs, Legislative Action Center, Priorities, Resources, Chapter Challenge, PAC and More

http://www.gbta.org/usa/governmentrelations/Pages/Default.aspx

GBTA Washington Update

What GBTA is Doing in Washington to Push our Priorities and Shape Policies

http://www.gbta.org/SiteCollectionDocuments/GovernmentRelations/WASHINGTON_UPDATE_FEB12.pdf

GBTA Legislative Action Center

On-line advocacy is effective! Send a letter about key issues to your elected officials in a few clicks

http://capwiz.com/nbta/home/

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2013 Legislative Symposium

June or July

Washington, DC

•Make Your Plans Now!

•Make A Difference!

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2012 Legislative Symposium

• Capitol Hill Reception Hosted by Travel and Tourism Caucus

• Education Sessions in Capitol Hill Visitors Center

• Presentations by Chairs of Key Congressional Committees

• Over 100 Hill Visits

Our Voice was Heard

Loud and Clear

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2012 Legislative Symposium

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7th Chapter Challenge is ON!

GBTA is Challenging Its Chapters:

Engage YOUR Elected Officials on

Business Travel Issues

The Voice of the Travel Industry in Washington, DC and Congressional Districts

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Chapters Completing 4 Tasks = PARTNERS

• 30% of Membership Send a Communication to an Elected Official Through the Legislative Action Center

• Invite an Elected Official to Speak at a Chapter Meeting OR Host a GBTA Government Relations Focused Meeting

• Send a Letter to Its Representative or Senator Endorsing a GBTA Endorsed Bill or Vote

• Raise $1,000 in PAC Contributions Regardless of Chapter Size (Must Have 30% of Members Contribute)

YOU CAN MAKE A DIFFERENCE

Additional information: Shane Downey, sdowney@gbta.org, 703/236-1131and NBTA Political Action Committee/Members -Only Area of Government Relations Website

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DONATE TODAY TO MAKE A DIFFERENCE • NBTAPAC is a federal political

committee that makes contributions to federal candidates and committees. Contributions to NBTAPAC are voluntary and any member has a right to refuse to contribute without reprisal. The contribution guidelines are merely suggestions and a member may contribute more or less or not at all without concern of favor or disadvantage by the association. Corporate donations will be used to pay for other grassroots political activities. Contributions are not deductible as charitable contributions for federal tax purposes. Federal law requires NBTAPAC to request the name, address, occupation and employer for each person whose contributions exceed two hundred dollars ($200.00) or more in a calendar year.

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Make Ohio Valley BTA A 2013 PARTNER

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Make Michigan BTA A 2013 PARTNER

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Next Steps…