Betsy Wall, Executive Director FOCUS ON CHINA Friday, December 14 th Hall of Flags, State House Boston, MA.

Betsy Wall, Executive Director

FOCUS ON CHINA Friday, December 14th

Hall of Flags, State HouseBoston, MA

PROGRAM OF EVENTS

10 – 11am Overview of China Visitation Data & Visitor Profiles

11– 11:45am Overview of the Chinese Leisure Market & the Tour Industry in China

11.45 – 12.30pm Lunch break12.30– 1.30pmThe Chinese International Student in

Massachusetts – A Primer1:30– 2:30pm Panel of Experts - Understanding the

Marketplace 2: 30 – 3pm Q & A

US-China Group Leisure Travel Memorandum of Understanding (MOU) signed December 11, 2007

US Travel Destinations are allowed to market their brands in China

Increase in number of Chinese tourists to the US

Chinese travelers will become more familiar with different US destinations

China inbound tourism to the US is the fastest growing tourism source to the USA and will continue to be so for the foreseeable future.

US Government granted Chinese visitors ‘Approved Destination Status’ (ADS) visas

Stated Goal of the U.S. Dept of State“Increase non immigrant visa processing capacity in

China and Brazil by 40 per cent in the coming year’

Recognition of Obama Administration to both protect US borders but nurture international visitation

What Are The Facts?

International Traveler Spendingfrom United Nations World Tourism Organization

OUTBOUND!

International Total * 62,711 5% 6%1 Canada 21,337 7% 4%2 Mexico 13,491 0% 5%

Overseas ** 27,883 6% 9%3 United Kingdom 3,835 -0% -2%4 Japan 3,250 -4% 14%5 Germany 1,824 6% 12%6 Brazil 1,508 26% 19%7 France 1,504 12% 5%8 South Korea 1,145 3% 12%9 China (PRC) 1,089 36% 42%10 Australia 1,039 15% 6%

Origin of Visitor 2011 2011/201012/11 May YTD

(000s) (% change) (% change)

Top Origin Markets forInternational Travelers to the U.S.

* International travelers include all countries generating visitors to the U.S.** Overseas includes all countries except Canada and Mexico. Record year for travel to U.S.

Travel Passenger Total Travel

Receipts Fare ReceiptsOrigin Country 2011r Receipts 2011

Top Travel Export Markets($billions of 2011 receipts)

Canada $19.4 $4.6 $24.0 Japan $10.1 $4.6 $14.8United Kingdom $9.0 $3.0 $12.0Mexico $6.4 $2.8 $9.2Brazil $5.9 $2.6 $8.5

China $5.7 $2.1 $7.7Germany $4.9 $1.4 $6.3Australia $4.3 $0.7 $5.0France $3.8 $1.2 $5.0India $3.1 $1.3 $4.4South Korea $3.7 $0.1 $3.8

U.S. TOTAL $116.1 $36.6 $152.7r = revised

Chinese Visitors & Spending(1997 – 2011, current $’s)

$0

$2

$4

$6

$8

$10

$12

0

200

400

600

800

1000

1200

97 98 99 00 01 02 03 04 05 06 07 08 09 10 11

Visitors (lhs)

Spending (rhs)

In 2011 visitor volume was a record 1.09 million, while spending was a record $7.74 billion.

visitors (000s) spending ($billions)

Sources: Department of Commerce, Office of Tourism Industries; Department of Commerce, Bureau of Economic Analysis

Chinese Traveler Superlatives

Including 2007, five consecutive visitor volume records—one of the longest record strings;

Highest visitor volume growth rate—by far—among top 40 origin markets (174% vs. 136% for Brazil);

3rd-highest visitor growth volume among all countries(700k vs Canada’s 3.6m and Brazil’s 900k);

Highest visitor spending growth rate (187%) vs Brazil (170%);3rd-highest growth spending volume among all countries ($5b vs Canada’s

$7.6b and Brazil’s $5.3b);

Since 2007 (1st new record among current string of records)

Chinese Visitors’ Top U.S. Ports of Entry

#1 Los Angeles (LAX)201k (18.5%)

1

2

#2 San Francisco (SFO)166k (15.2%)

3

#3 Chicago (ORD)129k (11.8%)

4

#4 New York (JFK)119k (10.9%)

5#5 Blaine, WA74k (6.8%)

6

#6 Newark (EWR)58k (5.4%)

Top CitiesCities Visited 2005 2006 2007 2008 2009 2010 2011

New York City 31 % 27 % 31 % 35 % 29 % 28 % 39 %Los Angeles 31 % 39 % 37 % 31 % 30 % 34 % 31 %DC Metro Area 15 % 13 % 17 % 18 % 17 % 14 % 20 %San Francisco 26 % 24 % 24 % 22 % 22 % 22 % 18 %Las Vegas 22 % 23 % 18 % 17 % 17 % 16 % 16 %Boston 7 % 8 % 8 % 8 % 9 % 9 % 12 %Chicago 16 % 11 % 13 % 11 % 11 % 10 % 8 %Buffalo 1 % 2 % 2 % 5 % 1 % 1 % 6 %Seattle 4 % 6 % 3 % 2 % 5 % 4 % 5 %Atlanta 2 % 2 % 2 % 4 % 3 % 2 % 4 %Philadelphia 2 % 3 % 5 % 6 % 3 % 4 % 4 %Detroit 1 % 3 % 1 % 1 % 0 % 2 % 4 %San Jose 6 % 6 % 4 % 4 % 2 % 1 % 4 %

Key ActivitiesActivities 2005 2006 2007 2008 2009 2010 2011

1 Shopping 89 % 90 % 88 % 90 % 92 % 94 % 87 %2 Dining in Restaurants 83 % 82 % 80 % 84 % 83 % 83 % 78 %3 Sightseeing in Cities 49 % 53 % 51 % 45 % 57 % 48 % 54 %4 Visit Historical Places 42 % 45 % 47 % 43 % 43 % 45 % 53 %5 Amusement/Theme Parks 31 % 25 % 28 % 28 % 27 % 33 % 36 %6 Visit National Parks 28 % 25 % 29 % 23 % 27 % 24 % 29 %7 Cultural Heritage Sites 21 % 24 % 21 % 25 % 29 % 23 % 28 %8 Art Gallery/Museum 24 % 18 % 19 % 22 % 24 % 19 % 25 %9 Casinos/Gambling 24 % 29 % 22 % 21 % 18 % 19 % 24 %

10 Visit Small Towns 24 % 23 % 22 % 19 % 22 % 23 % 23 %11 Guided Tours 8 % 12 % 13 % 14 % 15 % 17 % 20 %12 Touring Countryside 23 % 16 % 18 % 15 % 13 % 14 % 16 %13 Cruises 8 % 8 % 8 % 14 % 10 % 9 % 15 %

Activities, continued…Activities 2005 2006 2007 2008 2009 2010 2011

14 Water Sports/Sunbathing 11 % 8 % 5 % 14 % 12 % 9 % 12 %15 Concert/Play/Musical 10 % 11 % 10 % 9 % 12 % 8 % 10 %16 Nightclubs/Dancing 6 % 12 % 8 % 4 % 11 % 6 % 8 %17 Environ./Eco. Excursions 6 % 5 % 4 % 4 % 8 % 4 % 8 %18 Camping/Hiking 2 % 3 % 5 % 4 % 7 % 4 % 6 %19 Visit Am. Indian Comm. 2 % 2 % 5 % 4 % 4 % 3 % 6 %20 Attend Sports Event 8 % 5 % 6 % 4 % 3 % 7 % 6 %21 Ethnic Heritage Sites 4 % 4 % 5 % 3 % 9 % 5 % 5 %22 Golfing/Tennis 7 % 5 % 6 % 6 % 6 % 4 % 4 %23 Ranch Vacations 1 % 2 % 3 % 4 % 3 % 4 % 4 %24 Snow Skiing 1 % 2 % 1 % 2 % 2 % 2 % 3 %25 Hunting/Fishing 3 % 2 % 2 % 1 % 3 % 4 % 3 %

51.246.9

43.641.2

46.149.2 51.0

56.057.9

55.0

59.862.3

65.468.3

71.173.8

76.6

0

20

40

60

80

100

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012(f)2013(f)2014(f)2015(f)2016(f)

Arrivals in Millions

Sources: U.S. Department of Commerce, ITA, Office of Travel & Tourism Industries; Secretaria de Turismo (Mexico); Statistics Canada. -- April 2012 forecast

International Visitors to the U.S. and Projections(2000-2016)

OTTI Travel ForecastInbound Travel to the U.S. from Asia

Source: OTTI - April 2012 forecast

2011 2012 2013 2014 2015 2016 16 / 11

Asia 7,247 7,915 8,562 9,229 9,979 10,799 3,552

J apan 3,250 3,336 3,403 3,482 3,564 3,635 385

Korea 1,145 1,233 1,319 1,394 1,473 1,552 407

China 1,089 1,474 1,853 2,248 2,713 3,246 2,157

India 663 692 734 778 827 879 216

Taiwan 290 313 330 345 360 378 88

12 / 11 13 / 12 14 / 13 15 / 14 16 / 15 16 / 11

Asia - - - 9 % 8 % 8 % 8 % 8 % 49 %

J apan - - - 3 % 2 % 2 % 2 % 2 % 12 %

Korea - - - 8 % 7 % 6 % 6 % 5 % 36 %

China - - - 35 % 26 % 21 % 21 % 20 % 198 %

India - - - 4 % 6 % 6 % 6 % 6 % 32 %

Taiwan - - - 8 % 6 % 4 % 4 % 5 % 30 %

2011 2012 2013 2014 2015 2016 16 / 11

Asia 7,247 7,915 8,562 9,229 9,979 10,799 3,552

J apan 3,250 3,336 3,403 3,482 3,564 3,635 385

Korea 1,145 1,233 1,319 1,394 1,473 1,552 407

China 1,089 1,474 1,853 2,248 2,713 3,246 2,157

India 663 692 734 778 827 879 216

Taiwan 290 313 330 345 360 378 88

12 / 11 13 / 12 14 / 13 15 / 14 16 / 15 16 / 11

Asia - - - 9 % 8 % 8 % 8 % 8 % 49 %

J apan - - - 3 % 2 % 2 % 2 % 2 % 12 %

Korea - - - 8 % 7 % 6 % 6 % 5 % 36 %

China - - - 35 % 26 % 21 % 21 % 20 % 198 %

India - - - 4 % 6 % 6 % 6 % 6 % 32 %

Taiwan - - - 8 % 6 % 4 % 4 % 5 % 30 %

Forecast for Chinese Visitation to the U.S.

What does this mean for MA?

Chinese MA Numbers

Visitation to MA: 139,000 visitorsEst. Visitor Spending: $285 millionState & Local Taxes: $18 million

Massachusetts prestigious academic institutions are critical to the image of the state in China

Prep SchoolsUndergraduate coursesPostgraduate coursesExecutive TrainingBusiness Investment

MOTT Moving Forward in China

Capitalize on Brand USA partnership as they develop marketing strategy for China

Strengthen relationships with Chinese receptive operators and tour operators

Coordinate MA presence at key China trade shows

Host press trips and trade familiarization tripsInvest in social media & promotional presence

International Marketing ProgramQuestions?

Betsy LarkinSenior Manager, International Marketing

Massachusetts Office of Travel & [email protected]