Brand USA funding cut is a red flag: Impact storytelling matters more than ever

Travel Weekly

08-07-2025

The slashing of Brand USA's budget by 80% is a red flag that the travel and tourism industry cannot afford to ignore. It raises a deeper question: Who's telling the story of your destination — and whose stories are policymakers listening to?
When federal and state legislators make decisions that defund destination marketing or divert hotel bed tax revenue to other "community-focused" projects, it's often because the true impact of tourism — especially on local economies and underrepresented communities — isn't being told well or at all.
Stephanie Jones is founder and CEO of Disrupt for Change and the Diversity Tourism Academy.
Glamorous marketing campaigns and record-breaking visitor arrivals may grab headlines, but they rarely resonate with policymakers who are tasked with stewarding public dollars. What does resonate? Economic impact. Community impact. Stories of real businesses and neighborhoods that have directly benefited from tourism investment.
But here's the hard truth: If your destination has not been intentional about integrating underrepresented small suppliers and communities into your tourism ecosystem, you will not have these stories to tell when it matters most.
Policymakers want to know:
• Who benefits when tourism dollars flow into a city or region?
• Are those benefits reaching beyond hotel chains, attractions and big-name operators?
• Is tourism helping to scale, sustain and create profitability for small businesses and local communities?
If your destination cannot confidently point to Black-owned tour operators, local artisan shops, cultural museums and underrepresented entrepreneurs who can say, "Tourism helped grow my business," then you are missing a critical piece of your inclusive tourism and advocacy strategy.
This is why the gutting of Brand USA's funding is so telling. It's not just about federal cuts. It's a symptom of a broader disconnect between tourism's perceived glamour and its measurable, equitable economic contribution. When decision-makers don't see how tourism investment creates tangible value across all parts of a destination, they deprioritize it. They reallocate funds. And they look elsewhere for ROI.
For too long, many destinations have approached community engagement as a box to check — tokenism dressed up as outreach. But performative gestures don't build trust, visibility or economic impact. They certainly don't build advocacy allies when your budget is on the chopping block.
What's needed now is a shift toward equity alignment and intentional ecosystem building. That means:
• Integrating underrepresented small and medium-sized enterprises (SMEs) and cultural institutions into local tourism supply chains
• Equipping these businesses with the tools, training and visibility to compete
• Helping them develop case studies and impact stories that can be shared with stakeholders and policymakers alike
This isn't charity — it's strategy.
Ask yourself:
• Can you confidently point to 10 small businesses or cultural attractions that are better off today because of your tourism strategy?
• Can you call on them tomorrow to speak on your behalf to a city council or congressional committee about tourism's impact on their livelihood?
• Are they ready and empowered to help you defend your budget -- not out of obligation, but because they have benefited directly from your leadership?
If the answer is no, that's a red flag — not just for your marketing efforts, but for your long-term sustainability and political leverage.
The Brand USA cuts aren't just about a federal marketing budget. They are a signal to the entire industry. When tourism isn't seen as creating shared prosperity, it loses its legitimacy as a public investment.
Destinations that fail to prioritize inclusive economic development will continue to be vulnerable to defunding and disinvestment.
Here is my call to action: Build now so you don't have to scramble later.
I have seen though my businesses that DMOs and tourism boards can move from talk to transformation by:
• Identifying and engaging underrepresented SMEs and cultural institutions
• Delivering culturally relevant, industry-specific training to make them tourism market-ready
• Equipping them to share truth-telling stories about how tourism has impacted their businesses and communities
When these businesses are fully integrated into your tourism economy, you don't have to manufacture impact stories — you already have them. And when legislators question the value of tourism funding, you have local voices who can speak powerfully and authentically about how those dollars made a difference.
Will you be proactive or reactive? The choice is yours.
Continue to operate in silos and react when funding is threatened. Or act now to build a tourism ecosystem that is inclusive, resilient and politically defensible because its impact is clear, measurable and backed by real voices.
Is your destination ready to move from performative to purposeful? Let's co-create an ecosystem where every stakeholder — especially those traditionally excluded — can benefit and advocate for tourism's rightful place in our economic future.
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