Brand USA Is Facing Declining Contributions From Travel Brands This Year

After President Donald Trump released his proposed fiscal 2018 budget in May that called for the elimination of Brand USA, the United State's national tourism marketing arm, president and CEO Christopher Thompson said that it was business as usual and that the organization wouldn't get side-tracked. To that effect, Brand USA launched its "One Big Welcome" campaign last month, in part, to help combat the mixed messages many international travelers have heard from the Trump Administration. But a decline in partner cash and in-kind contributions – two key pillars of Brand USA's funding model which come from tourism boards and other travel brands – for January through April indicate that some brands aren't on board this year or are facing funding problems of their own. Partner cash contributions, were down $6.7 million year-to-date through April compared the first four months of 2016. In-kind contributions, or donations of non-cash goods or services that help Brand USA with its marketing campaigns and programs, were also down year-to-date through April – $4.7 million less than the same period last year. CFO Donald Richardson, speaking during the organization's second quarter board meeting on June 28, said the partner contributions goal for fiscal 2017, which ends on September 30, was $55 million but has since been revised to $52 million. In-kind contributions, however, have a more positive outlook as the organization had projected $50 million for fiscal 2017 but has revised that amount to $52 million. Brand USA's expenses, which include expenditures on marketing campaigns, were also $28 million behind budget year-to-date