Visit America Act

The Visit America Act (S.3831) was ordered to be reported favorably by the Committee on Commerce, Science, and Transportation on September 16, 2020. This action signals strong legislative momentum for a bill designed to enhance international travel and tourism to the United States. The bill focuses on promoting the U.S. as a premier travel destination, which directly translates to increased visitor numbers and spending within the country. This development is a clear positive for companies reliant on inbound tourism. The money trail for this type of legislation typically involves increased funding for Brand USA, a public-private partnership responsible for marketing the U.S. internationally. While specific dollar amounts are not detailed in the provided information, historical precedent indicates such bills lead to enhanced marketing campaigns and infrastructure support for tourism. Companies positioned to benefit include major hotel chains like Marriott International ($MAR) and Hilton Worldwide Holdings ($HLT), airlines such as Delta Air Lines ($DAL), United Airlines Holdings ($UAL), and American Airlines Group ($AAL), and online travel agencies like Expedia Group ($EXPE) and Booking Holdings ($BKNG). Additionally, companies in the short-term rental market, like Airbnb ($ABNB), and casino operators, such as MGM Resorts International ($MGM) and Las Vegas Sands ($LVS), will see increased demand. Historically, legislation supporting tourism has shown a direct correlation with sector performance. Following the passage of the Travel Promotion Act of 2009, which established Brand USA, the U.S. saw a sustained increase in international arrivals and tourism spending. While specific stock performance data from that period is complex due to the 2008 financial crisis recovery, the long-term trend for the sector was positive. More recently, post-pandemic recovery efforts, often supported by government initiatives to restore travel, saw companies like $MAR and $HLT recover significantly, with $MAR gaining over 50% from its March 2020 lows to the end of 2020, and $DAL recovering over 30% in the same period, driven by expectations of travel rebound and supportive policies. Specific winners include Marriott International ($MAR), Hilton Worldwide Holdings ($HLT), Delta Air Lines ($DAL), United Airlines Holdings ($UAL), American Airlines Group ($AAL), Expedia Group ($EXPE), Booking Holdings ($BKNG), Airbnb ($ABNB), MGM Resorts International ($MGM), and Las Vegas Sands ($LVS). These companies directly benefit from increased international visitor volume and spending. There are no direct losers from this legislation; rather, companies not exposed to international tourism will simply not benefit from this specific tailwind. With the bill ordered to be reported favorably, the next step is a vote by the full Senate. If passed by the Senate, it moves to the House of Representatives for consideration. The timeline for final passage is uncertain but the committee action indicates strong support, making passage a high probability.