Tiac 2014 hlt advisory presentation

Tourism Congress 2014Tourism Industry Association of Canada

November 25, 2014

Four Key Questions

How are we doing….really?

What’s the upside?

Who’s responsible (the case for alignment)?

What’s next?

How are we doing…really?

UNWTO International Tourist Arrivals 2013

+5% WORLD

CANADA 1.5%

US 4.6% Biggest competitor

5

Country Rankings

The top 20 countries barely comprise 50% of total visitation.

Between 2013/2010:

•Turkey 37% �

•United States 16% �

•Spain 15% �

•United Kingdom 11% �

•Canada 3% �

Canada’s Share of Outbound Travel

Ten core non-North American source markets

% Penetration of total outbound by year:2001….2012

Declining penetration from every country, in every year, except China/Hong Kong

Adjusted Overnight Spending

The decline in overnight spending is more pronounced in constant $.

Almost one-third less spending when inflation adjusted.

Overnight Visitor Spending (Current vs 2007 Constant $)

Total Tourism Spending in Canada (2007 Constant $)

2000

Domestic 67%

Foreign 33%

2012

Domestic 80%

Source: Statistics Canada Table 387-0001. Tourism Domestic Spending is the spending in Canada by Canadian visitors on domestically produced commodities. Foreign Tourism

Spending is spending by foreign visitors on Canadian-produced tourism goods and services. It includes spending that may take place outside of Canada, for instance, the purchase of an

airline ticket from a Canadian international carrier, to travel to Canada. It does not include expenses of crew members or medical and educational expenses.

$75.06 billion$61.44 billion

Foreign 20%

Comparison of Domestic Spend

Canadians are among the world’s most prolific spenders…and a highly-coveted market.

Canada’s Travel Deficit Continues to Grow

What’s the Upside?

Youth market—under 24 component grew to over 20% of total arrivals in 2012 …..France largest growth %

Global Instagram activity tied to CTC social media efforts quadrupled in 2013

Lots of Positive Signals . . .

Canada added 150,000 seats to existing overseas capacity last year, primarily to/from China, next to/from France


Business Events Canada (BEC) secured $120m in future business in Canada


• Broad-based benefit of Canadian Signature Events

• Ground breaking “Explorer Quotient” Initiative

• Federal tax generated by CTC programs: $72m with a payback of 1.2:1

U.S. Passport Ownership on the Rise

U.S. passport ownership has doubled in the last decade.

More than 100 million Americans able to travel internationally.

U.S. overnight trips to Canada remain anemic.

Canadian Penetration into American Travel

Despite surge in passport ownership…limited increase in U.S. outbound travel:

• 61.3 million outbound in 2000 vs. 61.9 million outbound in 2013

• Canadian penetration into U.S. outbound has fallen from 28% to 19%.

• Caribbean and Mexican destinations picked up most incremental outbound.

Fundamental Shift in U.S. Fly vs. Drive

• Growing air capacity from/between major U.S. and Canadian cities

• U.S. air arrivals to Canada up 7.3% YTD August 2014

• PhoCusWright research shows that:

– Canada is top of mind for 7% of Americans planning vacations.

– Previous vacation experience a good indicator of future interest

– Vancouver, Toronto and Montreal leading destinations

All “Tourism” Spending is Not the Same

Core tourism commodities/services:

• Lodging

• Food & Beverage

• Recreation & Entertainment

• Transportation (within Canada)

Other spending includes:

• Groceries

• Retail purchases

• Living expenses

U.S. travellers spend more on “core” tourism commodities than any other travellers

The Two-Nation VacationInternational Visitors to Canada that visited the U.S. Prior to Arrival (2012)

USA: Partner or Competitor?

• Complete alignment on target markets

• 21% of visitors to Canada stopped in U.S. first

• Greater prevalence with greater distance travelled

Who’s Responsible?

Marketing, Advocacy & Sector Organizations (A-G)

Albert County Tourism Association British Columbia Hotel Association Destination OsoyoosAlberta Bed & Breakfast Association Burin Heritage Tourism Association Destination Southwest Nova Scotia

Alberta Country Vacations Association Camping in Ontario Destination St. John’s

Alberta Culinary Tourism Alliance Canada West Ski Areas Association Digby Area Tourism Association

Alberta Hotel & Lodging Association Canadian Airports Council Eastern Manitoba Tourism Association

Alberta Sport Connection Canadian Badlands Eastern Newfoundland Tourism Partnership

Alberta's Lakeland Tourism Canadian Camping and RV Council Economic Development LethbridgeAssociation des Hôteliers du Quebec Canadian Garden Tourism Council Edmonton TourismAssociation des hôtels du grand Montreal Canadian Inbound Tourism Association Asia Pacific Edson and District Chamber of CommerceAssociation of Canadian Travel Agencies (ACTA) Canadian Sport Tourism Alliance (CSTA) Explore Southwest Alberta

Association québécoise de l'industrie touristique Cariboo Chilcotin Coast Tourism Association Explorers' EdgeAthabasca County Cavendish Beach PEI Festivals and Events Ontario

Atlantic Canada Tourism Partnership Central Counties Tourism (RTO 6) Festivals and Major Events Canada

Atlantic Canada Trails Association Central Nova Tourist Association Forks North Portage PartnershipAttractions Ontario Chinook Country Tourist Association Fort McMurray Tourism

ATV Ontario Clarington Tourism Fredericton Tourism

Aventure Écotourisme Québec Cree Outfitting and Tourism Association Go Ski AlbertaBaccalieu Trail Tourism Association Crown of the Continent Golf PEI

Banff Lake Louise Tourism Deer Island Tourism Association Grand Manan Tourism

Battlefords Tourism & Convention Association Destination Bluenose Coast Grande Prairie Regional Tourism Association

BC Commercial Snowmobile Operators Association Destination British Columbia Greater Toronto Hotel Association

BC Fishing Resorts and Outfitters Association Destination Cape Breton Island Guelph Tourism Services

Marketing, Advocacy & Sector Organizations (H-T)

Hamilton Halton Brant Regional Tourism Association Mountain Bike Tourism Association Paddling Ontario – Canoe and Kayak Adventure Ontario

Harrington Harbour Tourism Association Muskoka Tourism Parksville Qualicum Beach Tourism

Heritage Run Tourism Association New Brunswick Bed and Breakfasts and Inns Association PEI Aboriginal Tourism Marketing Circle

Hike Ontario New Brunswick Outfitters Association PEI Gay Tourism Association

Hospitality Newfoundland and Labrador New Brunswick Tourism, Heritage and Culture Pilgrim Routes Travel Inc.

Hotel Association of Canada Newell Region Tourism Association Quebec City Motorized Recreational Sports Show

Hotel Association of Nova Scotia Newfoundland and Labrador Tourism Regional Tourism Organization 4

Hotel Association of P.E.I. Niagara Falls Tourism Regional Tourism Organization 7

Hotel Association of Vancouver Northern British Columbia Tourism Association Regional Tourism Organization 8

Hotel/Motel Association of Newfoundland & Labrador Northwest Territories Tourism Resorts of Ontario

Interkake Tourism Association Nova Scotia Bed & Breakfast Association Rocky Mountain House and Clearwater County

Iron Horse Trail Nova Scotia Tourism Agency Saskatchewan Hotel & Hospitality Association

Kalyna Country Nunavut Tourism Saskatchewan Southwest Tourism Association

Kootenay Rockies Tourism Association NWT Campgrounds: Spectacular Parks & Campgrounds Shuswap Tourism - Columbia Shuswap Regional DistrictLac La Biche Region Ontario Accommodation Association Société des Attractions Touristiques du Québec

Lacombe Regional Tourism Ontario Culinary Tourism Alliance Sooke Region Tourism Association

Lakeland Tourism Association Ontario Cycling Association Southwest Ontario Tourism Corporation

Lanaudiere-Mauricie, Le Quebec authentique Ontario Federation of Anglers and Hunters Spectacular Northwest Territories

Lesser Slave Lake Regional Tourism Ontario Federation of Snowmobile Clubs St. Jacobs Country

Lloydminster Tourism Ontario Museums Association Sudbury Association of Bed and Breakfasts

Mackenzie Frontier Tourist Association Ontario Restaurant, Hotel & Motel Association Sunshine Coast Canada, BC

Manitoba Hotel Association Ontario Tourism Marketing Partnership Tantramar Tourism Association

Manitoba Rural Tourism Association Ontario's Highlands The Cowboy Trail Tourism Association

Meetings & Conventions Prince Edward Island Ottawa Tourism The Great Waterway (RTO 9)

Mighty Peace Country Ottawa Valley Tourist Association Thompson Okanagan Tourism

Marketing, Advocacy & Sector Organizations (T-Z)

TIA PEI Tourism Saskatchewan Tourisme Laval

Tourism Association of Vancouver Island Tourism Saskatoon Tourisme Manicouagan

Tourism Atlantic Tourism Sun Peaks Tourisme Montréal

Tourism Burnaby Tourism Tofino Tourisme Outaouais

Tourism Calgary Tourism Toronto Tourisme Québec

Tourism Camrose Tourism Vancouver Tourisme Saguenay—Lac-Saint-Jean

Tourism Canmore Tourism Victoria Tourisme Mauricie

Tourism Industry Association of B.C. Tourism Westman Tourisme Montérégie

Tourism Industry Association of New Brunswick Tourism Whistler Tourisme Nunavik

Tourism Industry Association of Nova Scotia Tourism Winnipeg Travel Alberta

Tourism Industry Association of Ontario Tourisme Bas-Saint-Laurent Travel Drumheller

Tourism Industry Association of Vancouver Island Tourisme Centre-du-Québec Travel Manitoba

Tourism Industry Association of Yukon Tourisme Abitibi-Temiscamingue Travel Nordegg

Tourism Jasper Tourisme Autochtone Québec Twenty Valley Tourism Association

Tourism Kamloops Tourisme Baie-James Vancouver, Coast and Mountains Tourism Region

Tourism Kelowna Tourisme Cantons-de-l'Est Viking Trail Tourism Association

Tourism Kingston Tourisme Centre-du-Québec Visit Red Deer

Tourism Medicine Hat Tourisme Charlevoix Waskesiu Wilderness Region

Tourism Nanaimo Tourisme Chaudière-Appalaches Western Canada Mountain Bike Tourism Association

Tourism Northern Ontario Tourisme Duplessis Western NL Destination Management

Tourism Partnership of Niagara Tourisme Eastern Townships Wilderness Tourism Association

Tourism Prince Edward Island Tourisme Gaspésie Wilderness Tourism Association of Yukon

Tourism Prince George Tourisme Îles-de-la-Madeleine Yarmouth & Acadian Shores

Tourism Regina Tourisme Lanaudière Yukon First Nation Tourism Association

Tourism Richmond Tourisme Laurentides Yukon First Nations Tourism Adventures

Leadership

233

228

43

76

43

A centralized approach led by a singleentity such as the CTC?

A decentralized approach with keyregional players (e.g., city orprovince)?

A single or consortium of private sectortourism entities?

A third-party hired through acompetitive process and dedicated tothis initiative?

Other

How should the industry best align itself to approach the U.S. market?

• Industry Survey in Spring 2014

• Focused on several issues

• Connect America/reaching the U.S. market one question area

• Two polarized approaches to undertake initiative

n = 623

Combined Marketing Spending (2013)

$622,048,175

$622,048,175 • Victoria• Vancouver• Whistler• Banff/Lake

Louise

• Calgary• Edmonton• Winnipeg• Toronto

• Ottawa• Montreal• Quebec City• Mt. Tremblant• Halifax

CTC(11.5%)

Provincial Marketing Organizations (60%)

Territorial Marketing Organizations (1.5%)

13 Largest Municipalities and

Resort Areas(27%)

RTOsCrown CorpsOperationsMinistry budgets

What’s Next?

The 5% Plan

� Exceed the UNWTO forecasted growth rate for developed economies

� Return to 2002 visitation levels by 2017

� Generate cumulative incremental spending of $5 billion by 2020

� Create $1.7 billion in incremental tax revenue to all levels of government

+5% WORLD

CANADA 1.5%

U.S. 4.6%

What’s the Game Plan?

Connecting America CTC-led campaign to reconnect with the US travel consumer, leading up to Canada’s 150th in 2017.

$35M federal co-investment per year for 3 years

Co-investment 1:1 – forging alignment

Significant opportunities exist:

• Ample air access

• US economy recovering

• >100M US passport holders

• Electronic Travel Authorization (ETA)

Prime customer base

The 5% Plan—Impact on All Sectors

International visitation of 22.3 million

Spending by international visitors of $17.2 billion (constant 2014$)

The 5% Plan—Impact on All Sectors

Lyle Hall Rob Scarpelli

Ken Lambert Katia Muro

Carla Giancola Drew Chamberlain

Matthew Klas

Specialized services for the Canadian and international hospitality, leisure and tourism industry.

[email protected]

www.hlta.ca

370 King Street West, Toronto, Ontario

(416) 924-7737

Questions???