Travel Promotion Act 2009 - Section 2.e.2.A - Specific Powers

September 25, 2009 – 4:15 pm

Here is where we start getting in to the nitty gritty of the act. The Specific Powers section of the act indicates what in general, this non profit corporation can and cannot do.

Section 2.e.2.A states that the corporation can obtain grants from and make contracts with individuals and private companies, State, and Federal agencies, organizations, and institutions.

This is a HUGE issue. Remember, the vehicle by which the Travel Promotion Act will be enacted is that of a Non-Profit Corporation; as opposed to a federal agency. And as such, section 2.e.2.A gives the right to obtain grants and enter into contracts with individuals and private companies.

One big question….who gets the contracts? If the Non profit was a federal agency, then a public bid process would be the norm. As it stands though, there is no governance as to who gets the contracts….because this is a non profit corporation.

Getting specific….Will American Express get the rights to be the primary booking agency for any one particual overseas marketing campaign…a la Halliburton in the Iraq war? Will Carlson handle the tour business for a campaign being done in Africa? Will Royal Caribbean be the primary beneficiary of a campaign done in Australia thereby bypassing the Travel Agency Distribution channel?

From the statements above and the non profit status of this corporation, it seems as though things could be quite a bit opaque…..thereby lending itself to favoritisms, etc. THERE IS NO TRANSPARENCY for this organization and there needs to be since this is at heart, an inception by congress.

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