April’s overall Traveler Sentiment IndexTM of 93.5 represents not only a nearly ten point increase from April 2011’s index of 83.9, but also marks its highest level since April 2007 (96.2). There was speculation that April’s TSI would decline in a manner similar to the sharp drop recorded in April 2011 following a sharp rise in February 2011; however, in this instance, the April 2012 TSI more than held its own. While up almost ten points from April 2011, the April 2012 TSI represents no change from February’s TSI of 93.6. The fact that February’s increase was sustained in April coupled with a near-record high bodes well for domestic travel during the next six months.
The State of Ohio’s Tourism Industry:“Visitors are Traveling and Spending Again” 2012 Ohio Conference on Tourism
Quick OverviewTourismOhio:• Since Last Year’s Conference – Tourism Funding Model – Key Accomplishments – Our Current Budget – New Partnership OpportunitiesTravel Trends:• Industry Vs. Economy – Ohio Currents – National Currents & Outlook
Our Industry• $40 Billion in Total Revenues• $2.7 Billion in Total State and Local Taxes Generated• 443,000 FTE’s Supported by Tourism (7% of OH jobs)Bottom Line: Tourism is a Revenue Generator for OH!*2011
Who Are We?• State’s Destination Marketing Organization• Premier source of information for travelers and media about Ohio’s vibrant tourism experiences, attractions and economy.
If We Do Our JobWe enhance the economic healthof Ohio by driving business toyou, thus generating revenue forthe state.
How We Do It (10.5 Staff+Agencies)• Advertising • Main • Multicultural • International• Public Relations• Tourism Information Services • Buckeye Database • 1-800-BUCKEYE • DiscoverOhio.com • Social Media • Buckeye Fulfillment Center • Research
Since We Last Met…• Record R.O.I. = 14:1• Record Industry Partner Participation!• Innovation & Partnership• Online & Social Media Enhancements!• Mobile Tour – 3nd Year!• Bronze Anvil, Sabre, & Telly Awards!
How Do We Compete?• Surrounding states currently have an average budget of $10 million each.• Michigan’s Tourism MARKETING budget is $27 million. Office budget total is $32 million.• We work hard and smart• We partner with you, and non-traditional businesses
Before I Continue…Write This Down:1. Go to DiscoverOhio.com/industry2. Register for Buckeyeline3. “Ohio Tourism Industry” FB Group
The Continued Basis of Our Approach:• UPSELL! - “Too Much Fun for Just One Day”• Identifiable Ohio – Differentiate• Through the eyes of our visitors/target audiences• Retail Strategy using New and Trad. Media• …And the:
Tourism Division Focus Areas for Success• Industry Partnerships: – Advertising Co-ops – PR – Web/Database – Telemarketing/Fulfillment – Multicultural – Social Media – Research – Non-Traditional Partnerships – Etc…etc…etc…
New Opportunities for FY’13• Our menu is bigger than ever!• Did you grab a 2013 Partnership Book?!• Most Opportunites are FREE!• We will have more based upon trends and your needs!
The State of the Industry• Rebounding Strength• Resilience• Recovery• Release
2011 Re-Cap: Continued growth in visitor spending Visitor spending• After increasing 7.4% in 2010, US$ Billions Ohio visitor spending expanded $27 $26.3 10% 8% another 6.5% in 2011, reaching $26 $25.6 6% $26.3 billion. $25 $24.5 $24.7 4% 2%• More overnight stays along with $24 0% -2% higher prices pushed $23 $23.0 -4% -6% accommodations spending up $22 -8% 9.4% in 2011. $21 -10% -12% 2007 2008 2009 2010 2011 TOTAL % Change Source : Tourism Economics Business Day
SB 314 = Tourism– Name Change: Office of TourismOhio– Tourism Funding Model– Tourism Advisory Board
Pilot Funding Model• Performance-based funding model• Compare sales-tax receipts year over year 2013 benchmarked against 2012• Tax receipts are based on NAICS Codes Restaurants, Hotels, Rental Cars, etc.
TourismOhio Budget• In growth years, TourismOhio will receive up to $10 million.• Any increase in Tourism funding will not be realized until October 2013 for FY14 budget.
How Do We Plan?• Track tax receipts throughout the fiscal year• The OhioTourism Fund is Revolving• Set aside a few million dollars each fiscal for zero-growth years
What Happens in Five Years?• The pilot funding model terminates end of FY 2018.• Pilot program to be evaluated and recommendations made as to whether to make the funding mechanism permanent.• If it is recommend to make the funding model permanent, it could be recommended to establish TourismOhio as a private nonprofit corporation or a subsidiary corporation of JobsOhio.
Director Search• Development and Tourism leadership involved• Better to find the right candidate than to hurry• Have interviewed strong candidates
Our Market• 2011 Visitor Study Highlights• Industry.DiscoverOhio.com
Current Word on the Street• Occupancy is UP 6.1% in 2011 vs. 2009 YTD (+4.6% U.S.)• ADR is UP 2.7% (+3.6% U.S.)• RevPar UP 8.9% (+8.3% U.S.)• Business Travel is Steadily Improving• Leisure Holding Its Own in Volume After Soggy Start• Incremental Visitor Spending is FINALLY going UP• BUT: Consumer Confidence and Gas Prices are Shaky!
Tourism and the National Economy**A special thanks to the US Travel Association and Tourism Economics for providing much of this data!
But also a Decade of R’s…Resilience Renewal Re-Birth Recovery Resourcefulness
Turning the corner… But when?• Another “soft patch”• Weak housing market• Americans’ spending plans still on hold• Weak labor market has weakened again• Inflationary pressures still high in travel• Ongoing debt crisis• Threat of higher taxes
Consumer Confidence is on the rise The Consumer Confidence Index is currently at 70.3, up form 45.5 last year at this time. 90.0 is considered healthy1985 = 100Source: The Conference Board, September 2012
Overall Traveler Sentiment IndexTM saw an uptick in July April’s overall Traveler Sentiment IndexTM of 93.5 represents not only a nearly ten point increase from April 2011’s index of 83.9, but also marks its highest level since April 2007 (96.2)Source: MMGY/U.S. Travel Association, travelhorizonsTM, April 2012
Domestic Leisure Visitors… Exceeded the 2007 high last year Millions of Person-Trips Bah!Source: U.S. Travel Association
56% of U.S. adults planning at least one leisure trip between August and January 7 million more travelersSource: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011
Financial factors influencing leisure travel… Most not really travel relatedFinancial Factor Influencing Future % AgreeLeisure Travel July 2011Price of gallon of gasoline 62%Price of air travel 59Meltdown of the U.S. economy 58High level of credit card debt 57Expectation of making less money 56Expectation spouse/partner will lose job 55High level of personal debt 55Rising cost of healthcare 51Size of the national debt 46Q: To what degree is each of the following financial issues currently affecting your leisure vacation plans over the next 12 months? (Somewhat tomuch less likely to travel)Source: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011
Reasons for taking more leisure trips… 3 Rs -- Rest, Relax, Reconnect• Reconnect with family/fiends (43%)• Relieve stress/need to relax (34%)• Break from home/work routine (26%)• Have put off traveling due to economy – feeling housebound (25%)Q: Why are you planning on taking more leisure trips during the next 6 months?Source: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011
Other Leisure Travel Trends• The “Staycation” has been revived – Regional Travel!• Balancing Effect with Long-Haul Travel• Bargain-Hunting “New Consumer” sees your discount rate as the beginning point of the haggle!• Explosive adaptation of Smart Mobile and Tablet technology redefines the marketplace…More are booking via mobile!• The Social Media ROI debate rages on, but you must be there!
Outlook through January 2012 • Still willing to travel, but making adjustments in spending • Still traveling close to home • Overnight leisure trips shorter in duration • More day trips • More long weekend getaways • Plans can change, but…..Source: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011
Vacations/Getaways are Needed Now More than Ever!
Incidence of Business Travel Down 14 Points Over Past 5 Years, but Stabilizing Percent taking business trip in past yearSource: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011
Domestic business travel inches up… Well below 1998 record high Millions of Person-Trips 520 508.7 500 494.3 480 461.1 460 447.8 Ouch! 440 431.1 420 400 380 2006 2007 2008 2009 2010Source: U.S. Travel Association
Business travel… The province of the young Plan to take a business trip between August 2011 and January 2012Source: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011
Hotel demand… Stronger than expected Percent change in room-nights sold over prior year 2010 2011Source: Smith Travel Research, September 2011
% change in RevPAR through August 2011 - Getting better 6.1 10.4 8.8 9.2 5.8 10.0% or more 7.5% to 9.9% 5.0% to 7.4% 0.0% to 4.9% DecreaseSource: Smith Travel Research, August 2011
STR Forecasts for 2011 and 2012 ADR drives up RevPARSource: Smith Travel Research, July 2011
International Visitors… Welcome back!• Spend more per trip ($4,000 per overseas visitor)• Stay longer (18 nights in U.S.)• $31.7 billion trade surplus• Stay in hotels (78%)• They enjoy seeing the America we take for granted
International arrivals to U.S. sets new record! 9 million more visitors than 2000(in millions)Source: Office of Travel and Tourism Industries
Forecasts Through 2013…Break out the Ouija boards!
Total domestic visitors… Modest growth*ForecastSource: U.S. Travel Association; Tourism Economics
Domestic leisure visitors… More solid growth*ForecastSource: U.S. Travel Association; Tourism Economics
Domestic business travel improves… But still well below 1998 record high In millions* Forecast as of May 11, 2011Source: U.S. Travel Association and Tourism Economics
International and Overseas arrivals continue strong as well *Forecast Source: U.S. Travel Association; Tourism Economics
Summary…sustained, but slow growth expected in 2011…and 2012 and 2013 Domestic Domestic International Domestic International Leisure Business Visitors Spending Spending* Volume Volume 1.2% 2.4% 5.8% 7.3% 10.0%*Excluding international airfaresSources: U.S. Travel Association; Oxford Economics/Tourism Economics;U.S. Department of Commerce-Office of Travel and Tourism Industries
42 million “not sures”… Must be in the marketplace Not Sure 18% 42 Million No Plans to Travel 26% 60 MillionQ: Over the next 6 months, do you plan to take any leisure trips of at least 50 miles one way from home or that will include an overnight stay?Source: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011
Just a couple more thoughtsbefore you can get ready for tonight…
Tourism Division A Few Messaging Opportunities• VALUE!!!• Authenticity• Focus on “Re” - Connections• Ease of Travel – Time• Social Media – Be Strategic• Show Your Mobility• PACKAGE!!!• INTEGRATE!!!