Brand USA has experienced a staggering 80% reduction in funding this year, significantly altering the manner in which the United States engages with Australia’s long-haul travel sector.
Recently, the VISIT USA Act was introduced in Congress, seeking to reinstate this crucial funding ahead of pivotal events such as the 2026 World Cup and the 2028 Olympics.
This juncture holds immense importance for Australian travelers and the travel industry alike, with signs indicating a probable reinstatement of funding that would bolster U.S. presence in the long-haul market.
Australia remains a key long-haul market for the United States, anticipated to receive nearly one million visitors in 2024. Nevertheless, demand can rapidly shift when visibility wanes, and diminished U.S. promotional efforts may redirect travelers toward more actively marketed destinations.
Variations in booking trends, fare structures, and destination preferences are inevitable when the U.S. recedes from consideration.
Data from the Australian Bureau of Statistics reveals a decline in the number of Australians returning from the U.S. in 2024-25 compared to the previous year. While the United States continues to rank among the top five destinations, its share of outbound travel is diminishing.
But has it passed? A brief guide on the trajectory of the VISIT USA Act
This Act enjoys bipartisan support across both chambers of Congress, with initial indicators suggesting a likely pathway to passage. Nonetheless, the process entails committee evaluations, chamber-wide votes, and ultimately, presidential approval.
For Australian stakeholders, the potential for approval portends a resurgence of U.S. visibility at a time when competition in the long-haul sector is intensifying.
Implications for Australian trade performance
Australian wholesalers, airlines, and inbound operators depend on a robust U.S. brand presence to generate long-haul demand. A contraction in that presence leads to increased customer acquisition costs and heightened pressure on margins.
Australian travelers are a vital long-haul audience for the United States, with nearly 1 million arrivals projected in 2024.
The successful passage of the VISIT USA Act could unlock new avenues for co-marketing efforts, enhance competition with other long-haul destinations, and promote stronger load factors among airlines operating routes between Australia and the U.S.
The World Cup and Olympics as catalysts for Australia
Major global events inevitably influence both demand and visibility, and the U.S. is poised to enter a critical promotional phase that coincides with two of the world’s premier tourism events.
The 2026 World Cup and the 2028 Olympics are anticipated to draw nearly 40 million visitors, with millions of fans expected to travel to the United States for these occasions.
“The VISIT USA Act represents an astute bipartisan initiative that guarantees America’s competitive presence on the global stage,” remarked Geoff Freeman, President and CEO of the U.S. Travel Association.
“We possess a once-in-a-generation opportunity to welcome international visitors—through the World Cup, America 250, and the Olympics—but achieving this hinges on Brand USA having sufficient resources to fulfill its mission. Congress must act promptly to restore funding, attract global travelers, and exhibit the unparalleled allure of America.”
Early engagement from Australian agents could seize opportunities for growth ahead of this surge, particularly if U.S. marketing assets are reactivated at scale.
Consequences of stalling the VISIT USA Act
If Congress delays action on the VISIT USA Act, Brand USA will persevere with reduced capabilities, diminishing U.S. competitiveness in a market where long-haul competitors are expanding their foothold.
For the Australian travel industry, this translates to fewer incentives, constrained marketing resources, and increased dependence on independent demand generation.
Australia continues to divert substantial outbound traffic to regions that invest heavily in marketing. Japan, with over 500,000 Australians expected in 2024, remains an active long-haul competitor.
Meanwhile, Europe, welcoming more than 1.2 million Australian travelers through major hubs last year, sustains high-visibility campaigns across trade and consumer platforms.
Next steps for Australian travelers and the travel industry
The Australian travel sector should monitor the legislative progress of the VISIT USA Act and urge suppliers for insights regarding forthcoming co-marketing initiatives. Operators will need to recalibrate their U.S. strategies as funding restoration may rapidly alter demand dynamics.
Travelers are likely to perceive enhanced value, particularly as campaigns recommence, and early booking incentives associated with the World Cup and Olympics may be introduced sooner than anticipated.
Renewed funding for Brand USA would amplify U.S. destination visibility in Australia and facilitate revitalized trade marketing in the long-haul sector.
Strategies for advisors to leverage Brand USA’s campaign tools for client promotion
The United States remains a cornerstone in Australia’s long-haul travel landscape, supported by extensive airline capacity, diverse product offerings, and consistent demand.
A diminishment in visibility jeopardizes these competitive advantages, risking a shift in market share to destinations with a more vigorous in-market presence.
A revitalized budget for Brand USA would restore equilibrium and furnish Australian travelers and agents with clearer guidance to re-engage with U.S. offerings.
KARRYON UNPACKS: The anticipated passage of the Act indicates a resurgence in U.S. visibility, with early movers within Australia’s travel sector poised to capture substantial long-haul benefits.
Source link: Karryon.com.au.
