TED Case Studies
Number 742, 2004
by Wafa Al Otaiby

Saudi Arabia Visa and Toursim

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Legal Cluster
Bio-Geographic Cluster
Trade Cluster
Environment Cluster
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I. Identification

1. The Issue The Visa Waiver Program (VWP) enables citizens of certain countries to travel to the United States for tourism or business for 90 days or less without obtaining a visa. This program is a significant policy because visa waiver influences tourism and travel patterns.   Visa waiver helps the tourism industry by generating foreign exchange earning and increasing employment for the host country. On the other hand, visa waiver can create problems in the tourism industry if there is abundance of security concerns.  After 9/11 newer, tighter security measures are introduced every day. Even Visa waiver participants have to deal with the new regulations to enter the USA. Today foreign visitors entering the United States with a visa waiver are subject to the new requirements under a program designed to both enhance U.S. border security and ease travel.  These tight security measures are introduced overtime, and traveler must get used it.

 Furthermore, countries that deal with WVP programs have to meet the U.S government new regulations.  Because of the of security concerns, there is a need to develop a new requirement for countries to be included in the visa waiver programs.  One of the suggested requirements is to have a biometric passport. The problem is that most of the so-called “Visa waiver countries “ like England, France, Germany, Japan have told the United States they will not be able to meet a deadline for issuing travelers a biometric passport. The Department of Homeland Security is conducting a review of all U.S. visa policies including the Visa Waiver Program.

 Congressional statutes require that half of the VWP countries be reviewed each year to determine their fitness to remain in the program. Argentina's six-year participation in the program was terminated the program in 2002 due to the fact that they did not meet the new changes in time.  Changes in the Visa Wavier Program are not only affecting the visa waiver participants but also the American traveler who travel under the VWP.

2. Description           The Visa Waiver Program is an important tourism policy because it helps the economy, and it enables travelers to enter certain countries for a limited time without dealing with visa issues.  Countries that use the Visa Waiver Program (VWP) limit the traveler’s stay from one to three months, which increases the revenue to the countries that host the traveler. Most of the countries that deal with VWP are trusted partners to the USA, and they possess machine-readable passports. But still government needs to identify the security measures required to eliminate any possible threat. The impact of the September 11, 2001, terrorist attacks caused visa restrictions in the United States.  As a result, the United States planned more security measures and more restrictions on visas.   The restrictions on visas caused a decline of travel by foreign tourists in the United States.  The USA used to earn more from international tourism but this restriction caused a negative balance.  Visa applications to the United States, which had been growing by nearly 20 percent a year, fell last year by 20 percent,. In 2003, 13.5 million visitors entered the United States under this program,

Constituting 49% of all overseas visitors.

 

3. Related Cases

4. Author and Date:

Wafa Al-otaiby  

Master's of Tourism Administration and Hospitality Management
The George Washington University
600 21st St., NW
Washington, DC
USA
(alotaiby@gwu.edu )


II. Policy Impacts

5. Social Visa wavier program can change the causal shifts in travel patterns for and preference for travelers from one country to others.  

 

6. Economic Visa waiver helps the tourism industry by generating foreign exchange earning and employment for countries participants. The changes in visa waiver program could cost airlines millions in revenues. Visa wavier programs allow travelers to spend time inside the country while waiting for a connecting flight to another international destination.  If the traveler is not allowed in the country the airlines will have to reroute the traveler through airports outside the USA. The visa waiver program has supported travel and tourism industries in the United States of America.  The Visa Waiver program is an instrument that promotes travel and causes improved economic growth generated by international tourism and commerce for the United States

 

7. Other: New security measures and concerns. Congress required that the 27 countries issue travelers to the United States machine-readable passports with a biometric identifier. The biometric identifier has not yet been defined, but it may be a fingerprint or facial recognition technology. VWP will have to come up with an agreement to define the biometric requirements.

 

8. Suggested Interventions

The problem is that most of the so-called “Visa Waiver countries “ like England, France, Germany, Japan have told the United States they will not be able to meet a deadline for issuing travelers biometric passports. It is estimated that one or two countries might be able to comply by 2005, namely Japan and England. As a result the Immigration and Nationalization Services (INS) should ensure the safety of traveler to the USA by using profiling and gathering data from the airline.  This data can help fight terrorism, however, there is a risk that the data could be used for other purposes, including transfer to other services of the US administration or to third parties. As a result, there is a need to structure a new regulation for traveler privacy that insures that government or other agents use that data only for ensuring the safety of the traveler and not use it against fundamental freedoms or the rights of travelers. Develop data protection laws and privacy standards internationally. These laws and agreements help in transferring data internationally and define how it should be used and should be made within the framework. Using the Sydney Agreement as international data protection laws. In Sydney they define the condition necessary for ensuring data protection, have clear targets to justify the collection of the data, strict limits on storage period and provision of adequate use of the information gathered.

 III. Legal Clusters

10. Discourse an The Visa Waiver Program (VWP) was created by an act of Congress as a pilot program in 1986 and implemented in 1988. Congress passed legislation to make the program permanent in October 2000, and the President signed the legislation on October 30, 2000; however, after September 11, 2001, concerns have been raised about the possibility of terrorists to enter the United States under the visa waiver program.  Under Department of Homeland Security (DHS) regulations, travelers who wish to enter the United States through the VWP are subject to the biometric requirements of the US-VISIT program. These new regulations may cause a decline in the number of travelers.

The VWP program helps international travel and commerce and eases the workload abroad. However there is a concern about the screening process for foreign visitors. Countries can be immediately terminated from VWP if any crisis occurs that threatens the law enforcement or safety interest of the United States and the USA PATRIOT Act. All of these Laws and acts were developed to enhanced border security in all the participating countries.

d Status/Policy Issue:

 

11. Forum and Scope/Existing Policy Framework:

o       International 27 countries involved international

o        

o       National Department of Homeland Securities, INS Immigration and Nationalization Services

o        

o       Regional USA

o       Local Washington DC , Government agencies and business

 

12. Decision Breadth/Stakeholders/Policy Actors: Currently, 27 countries participate in the Visa Waiver Program, and the government of the United States of America

 

 

Andorra (MRP)

Iceland

Norway

Australia

Ireland

Portugal

Austria

Italy

San Marino

Belgium (MRP)

Japan

Singapore

Brunei (MRP)

Liechtenstein (MRP)

Slovenia (MRP)

Denmark

Luxembourg

Spain

Finland

Monaco

Sweden

France

The Netherlands

Switzerland

Germany

New Zealand

United Kingdom

 

13. Legal Standing/Legal Regulatory 

Visa Waiver Permanent Program Act Congress passed legislation to make the program permanent in October 2000, and the President signed the legislation on October 30, 2000

Framework/Suggested Policy Intervention

New Act for international privacy and profiling

 

 

IV. Trade Clusters

14. Type of Measure: regulation and safety of traveler and the ease of travelers

 

15. Relation of Trade Measure to Environmental/Tourism Impact

a. Directly Related to Product: Yes   tourism and travel industries in the USA

b. Indirectly Related to Product: Yes foreigners Policy and international relation and trades

c. Not Related to Product: Western influence and culture diffusion

 

16. Trade Product Identification/Trade and Services:

17. Economic Data The visa waiver Program have caused a steadily increase of number of traveler to the United States, up to 17.7 million in the year 2000. After 9/11 the number of visitors entering under the VWP declined by 3.4 million or 20% between 2001 and 2002; however, the number of people entering under the VWP increased in 2003 from 13.2 million to 13.5 million 15.  Impact of Trade Restriction: The U.S. Department of Justice announced on February 20th 2002, that Argentina would be officially removed from the Visa Waiver Program (VWP) because Argentina did not meet the US requirements. Other countries have acted in response to the USA restriction in a negative way.

 

19. Industry Sector: Tourism and Airlines, car rental, hotels occupancy…etc

V. Macro/Environment Clusters/Tourism Policy Clusters

23. Urgency and Lifetime/Urgency and Policy Review:  Most countries will not meet the deadline for the biometric passport. People who were already legally in the United States perpetrated September 11 attacks.  Spending money on scanning all travelers is not very cost efficient. It will be of more benefit if they narrow down the number of travelers that they will scan by using profiling. Profiling is gathering data about traveler and matching it the data with travelers’ personality and patterns of spending.

 

24. Substitutes/Alternative Policies: Profiling and Building a database that is used all over the world to gather information on travelers and their patterns of behavior, in addition to using the biometric passport. Which will eliminate the number of unlawful use of other passports to enter the US, biometric passport will help to ensure the identity of the travelers.

 


VI. Conclusion

26. Recommendations Extend the congress-mandated time required for the 27 countries using biometric passports.  Come to agreement as to which is a better measurement for biometric identifiers such as fingerprints or facial recognition technology and use one or the other as a standard for the biometric passport.  Use profiling and train government agents to use it in an effective way for visitors, and develop more regulations to protect traveler’s privacy.

 

VII Other Factors

27. Culture: Privacy concerns and standards for the biometric identifier, governments

 

29. Rights: Privacy concerns and Course of action

 

30. Relevant Literature

1- How to save the tourist industry. By: Sandilands, Ben. BRW, 06/29/98, Vol. 20 Issue 24, p64, 3p, 3c; (AN 830394)

 2-Business v Bush ,  Economist, 00130613, 10/18/2003, Vol. 369, Issue 8346

3- Visa-Waiver Reprieve ,  By: Bond, David, Aviation Week & Space Technology, 00052175, 9/15/2003, Vol. 159, Issue 11

Krohn, Franklin, Ahmed, Zafar U,."Reversing the United States Decline competitiveness in the marketing of international tourism: A perspective on future policy." Journal of travel Research  (Fall 200)
Anonymous, Visa examine European difference on corporate spending Habits? European Business review. Bradford: 2001 Vol. 13 iss 3 

Magazine Article
Robeson, Eric,  Change in Visa Wavier program can cost Airline Millions American and Untied Airline Inc. Knight Rider Tribune Business news  Aug 7, 2003

Devine Carol, Volume, 20, issue 17,

Robert Block in Washington and Philip Shishkin in Brussels. Wall Street Journal (Eastern edition). New York, N.Y.: Apr 5, 2004. p. A.6

Companies:

European Union (NAICS: 926110 )

Author(s):

DANIEL DOMBEY and RAPHAEL MINDER

Section:

WORLD NEWS

Publication title:

Financial Times. London (UK): Mar 13, 2004.  pg. 9

U.S. Security Moves Worrying Industry
Donna M Airoldi. Meeting News. New York: Feb 16, 2004. Vol. 28, Iss. 2; p. 1 (3 pages)

Critical Nature of the J-1 Visa Waiver Program for Foreign Medical Graduates
Mark G Tozzio. Journal of Healthcare Management. Chicago: Jan/Feb 2004. Vol. 49, Iss. 1; p. 61

U.S. government expels legitimate reporters
Maria Trombly. The Quill. Chicago: Jul 2003. Vol. 91, Iss. 5; p. 64

U.S. Passport Rules Could Hit Allies --- Security-Oriented Policy Could Discourage Travel For Citizens of 27 Nations
By Marjorie Valbrun. Wall Street Journal (Eastern edition). New York, N.Y.: Jun 20, 2003. p. A.2

Visa waiver rules tightened
TTG, Travel Trade Gazette, U.K. and Ireland. Tonbridge: Apr 28, 2003. p. 28

Companies:

Continental Airlines Inc(Ticker:CAL , NAICS: 481111 , Duns:09-944-7401 )

Publication title:

Airport Security Report. Potomac: Dec 18, 2002.  pg. 1

Special issue:

Vol. 9, Issue: 26 [Copyright 2002 PBI Media, LLC. All rights

Source Type:

Periodical

 

 

 

 

 

 

 



1/2001;4/2004