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	<title>Business Beyond the Reef &#187; Brazil</title>
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	<link>http://kekepana.com/blog</link>
	<description>Making Trade Happen</description>
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		<title>Opening The Tourism Gates</title>
		<link>http://kekepana.com/blog/2012/01/23/3735/</link>
		<comments>http://kekepana.com/blog/2012/01/23/3735/#comments</comments>
		<pubDate>Mon, 23 Jan 2012 10:15:27 +0000</pubDate>
		<dc:creator>Steve</dc:creator>
				<category><![CDATA[Brazil]]></category>
		<category><![CDATA[China]]></category>
		<category><![CDATA[Taiwan]]></category>
		<category><![CDATA[Tourism]]></category>

		<guid isPermaLink="false">http://kekepana.com/blog/?p=3735</guid>
		<description><![CDATA[President Obama swung by Disneyworld Thursday to announce his new executive order on promoting travel and tourism to the United States. Finally, it seems, somebody is taking this magnificent export industry seriously. Crippled by post-9/11 restrictions on visas and the TSA&#8217;s constant hassles at airports, travel and tourism still account for 7% of total U.S. [...]]]></description>
			<content:encoded><![CDATA[<p><div id="attachment_3736" class="wp-caption alignright" style="width: 210px"><a href="http://kekepana.com/blog/wp-content/uploads/2012/01/20120119-potus-disney.jpeg"><img src="http://kekepana.com/blog/wp-content/uploads/2012/01/20120119-potus-disney.jpeg" alt="" title="20120119-potus-disney" width="200" height="303" class="size-full wp-image-3736" /></a><p class="wp-caption-text">Who will Mickey vote for?</p></div>President Obama swung by Disneyworld Thursday to announce his new executive order on promoting travel and tourism to the United States. Finally, it seems, somebody is taking this magnificent export industry seriously. Crippled by post-9/11 restrictions on visas and the TSA&#8217;s constant hassles at airports, travel and tourism still account for 7% of total U.S. exports and are by far our leading service export. What&#8217;s that in real money? A cool $134 billion. The industry as a whole employs 7.5 million people, with overseas visitors providing much of the profit margin that enables the industry and its jobs to grow. Unlike more stingy domestic travelers, or foreign travelers who can walk or drive into the country, long-haul international visitors spend, on average, about $4,000 per trip to the United States. </p>
<p>The <a href="http://www.whitehouse.gov/the-press-office/2012/01/19/we-can-t-wait-president-obama-takes-actions-increase-travel-and-tourism-">White House press release</a> emphasized three markets for growth in U.S.-bound tourism: Brazil, China and India. But India somehow got left out of the specific plans and proposals. There is much in the executive order that will boost travel from Brazil and China, some that is global, and a big potential boost to traffic from Taiwan. </p>
<p>Tourism promotion has largely been left in the hands of the states and individual destinations. True, there have been Federal boosts to tourism over the years, often at the behest of Hawaii&#8217;s Senator Inouye, but Washington support for tourism has hardly been consistent. It makes supreme sense to do some joint marketing for the whole country. After all, few tourists are interested only in Mount Rushmore, but they might be attracted by a trip that would also take in Yellowstone, the Grand Tetons, Devils Tower and Glacier National Park &#8211; none of which are promoted by South Dakota. So I am pleased to see a new national approach. </p>
<p>The executive order doesn&#8217;t say much about tourism promotion beyond ordering the secretaries of Commerce and Interior to come up with a strategy. The order does, however, address some of the major impediments to attracting foreign visitors to our country and its sights. The departments of State and Homeland Security have been ordered to increase visa processing capacity in China and Brazil by 40% in 2012, presumably based on the successful visa processing program piloted at the American Consulate in Shanghai over the past couple years. Both China and Brazil have a huge backlog of non-immigrant visa applications and the goal is to be able to process 80% of applications within three weeks. No more waiting months to even see a consular officer. </p>
<p>The Global Entry Program is a &#8220;trusted traveler&#8221; program in which frequent visitors to the United States can have background checks done in advance so that processing through immigration at U.S. airports is accelerated. They scan their passports and their fingerprints, and they are on their way. Despite the pilot nature of the program and its availability at only twenty airports, nearly a quarter million foreign travelers have signed up. The executive order makes GEP permanent and orders expansion to more airports. </p>
<p>Listed last, but certainly not least, is a decision to add Taiwan to the 35 countries that already are covered by the Visa Waiver Program. Technically, Homeland Security has to approve this, but with an instruction from the President, it seems likely to happen quickly. We already see a lot of visitors from Taiwan, but expect a profound increase when they get the visa waivers. </p>
<p>One small thing puzzles me from my parochial perspective in Honolulu. The President announced new appointments to the U.S. Travel &#038; Tourism Advisory Board, an advisory committee housed in the Commerce Department which should be heavily involved in developing tourism promotion strategies. There are 32 private sector members of the board, <strong>not one of whom comes from Hawaii</strong>, which I understand is a major U.S. tourism destination. Four out of the 32 come from Florida &#8211; and the announcement was made at Disneyworld. Now, let&#8217;s see, Hawaii is a safe state for Obama and has few electoral votes. Florida, on the other hand, &#8230; Silly me! The President wouldn&#8217;t play politics, would he?</p>
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		<title>Breaking Waves</title>
		<link>http://kekepana.com/blog/2010/02/27/breaking-waves-4/</link>
		<comments>http://kekepana.com/blog/2010/02/27/breaking-waves-4/#comments</comments>
		<pubDate>Sat, 27 Feb 2010 16:56:04 +0000</pubDate>
		<dc:creator>Steve</dc:creator>
				<category><![CDATA[Brazil]]></category>
		<category><![CDATA[China]]></category>
		<category><![CDATA[Cuba]]></category>
		<category><![CDATA[Finance & Investment]]></category>
		<category><![CDATA[Korea]]></category>
		<category><![CDATA[Shipping]]></category>
		<category><![CDATA[Trade Policy]]></category>

		<guid isPermaLink="false">http://kekepana.com/blog/?p=981</guid>
		<description><![CDATA[The mind boggles.  Club Med has invested in a ski resort in China.  Way up in the northeast, in Heilongjiang Province, Club Med has bought into a financially-strapped ski resort.  This may be an intriguing clash of cultures. President Obama&#8217;s approval of loan guarantees for two nuclear reactors in Georgia has split the unions.  Construction [...]]]></description>
			<content:encoded><![CDATA[<ul>
<li>The mind boggles.  <a href="http://www.scmp.com/portal/site/SCMP/menuitem.2af62ecb329d3d7733492d9253a0a0a0/?vgnextoid=6c2e55a7eb6e6210VgnVCM100000360a0a0aRCRD&amp;ss=Companies&amp;s=Business">Club Med has invested in a ski resort in China</a>.  Way up in the northeast, in Heilongjiang Province, Club Med has bought into a financially-strapped ski resort.  This may be an intriguing clash of cultures.</li>
<li>President Obama&#8217;s approval of loan guarantees for two nuclear reactors in Georgia has split the unions.  Construction unions love it, but <a href="http://www.nytimes.com/2010/02/20/business/20nukes.html?hpw">the approval is drawing fire from the United Steelworkers</a> because some 20% of the package will buy critical components from steelmakers in China or South Korea.  The union is trying to create doubts about the safety of Chinese steel, but we are not talking about consumer goods here.  China has been successfully manufacturing reactors, while our own industry has been moribund for thirty years.  Why should we expect to be competitive on something with which we have little experience?</li>
<li>We had the pasta war, several chicken wars, even the turkey ball war.  But <strong>the toilet paper war</strong> is just beginning.  <a href="http://news.smh.com.au/breaking-news-national/overturn-toilet-paper-decision-union-20100222-ooaw.html">Unions in Australia are challenging imports of cheap toilet paper from China and Indonesia</a>, saying the product is being dumped (I&#8217;m not going to touch that pun).  Having had personal experience with cheap toilet paper in both Indonesia and China, this dispute is self-limiting.  Australian consumers are only going to buy it once.</li>
<li>Brazil now exports more to China than it does to the United States, a reflection, of course, of the recession.  The problem is that China buys a vastly different group of products than Brazil sells to U.S. customers.  Brazil&#8217;s trade with the United States is mainly in industrial goods, but China is mostly buying commodities such as soybeans and iron ore.  This destroys the value-added business of Brazilian product companies and sends Brazil back to the days of simply being a commodity supplier.  This will presumably end when the U.S. economy moves into recovery.  In the meantime, not everybody is dancing in Brazilian streets.  <a href="http://www.atimes.com/atimes/China_Business/LB23Cb01.html">For more, see the article in <strong><em>Asia Times</em></strong>.</a></li>
<li>The<a href="http://economix.blogs.nytimes.com/2010/02/22/another-recession-casualty-cuban-cigars/"> recession also hurts the Cuban cigar trade</a>.  Sales were down by 8% in 2009, reflecting reduced international travel (which, of course, cuts sales at duty-free airport shops) and Spain&#8217;s economic downturn.  Spain has historically been Cuba&#8217;s largest cigar market, but &#8230; up in smoke.</li>
<li>A suit brought by Totes-Isotoner alleging gender discrimination in customs classifications was tossed out by a Federal appeals court this week.  The company argued that having different duty rates for men&#8217;s and women&#8217;s clothing (a time-honored practice around the world) discriminated against whichever gender got the higher rate on a particular item of clothing.  I would guess this is about gloves.  The court in New York disagreed.  Totes-Isotoner says they will appeal to the Supreme Court.  (note: these classifications are set, at the 4-digit level, by international agreement &#8211; not by any one country.)</li>
<li>Shipping lines complain loudly about all the empty containers they have to move westbound across the Pacific.  So what do they do about it? <a href="http://ow.ly/1bffl"> They raise their westbound rates.</a> What a novel idea &#8211; raise prices to attract business.  Gotta think about that.</li>
</ul>
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