Michele McKenzie: Power of Tourism at the Tourism Industry Association of Prince Edward Island meetingPresentation Transcript
Canadian Tourism CommissionTourism Industry Association of Prince Edward IslandDecember 2, 2011
THE POWER OF TOURISM Growth of global arrivals: • 25 million in 1950. • 935 million in 2010. • 1.6 billion by 2020. In 2010, Canada’s tourism sector contributed: • $73.4 billion in revenues to the Canadian economy • $29.3 billion to Canada’s GDP • $20.1 billion in government taxation revenues. Tourism marketing benefits other sectors, like trade and education. Tourism generates enormous secondary benefits for the economy and the employment of a country.
INTERNATIONAL TOURIST ARRIVALS BY REGION (MILLION)
CTC OVERVIEW• Canada’s national tourism marketing organization (NTO)• Investing in 11 countries around the world• Headquartered in Vancouver with a regional hub in UK• Federal Crown corporationOur goal: Grow tourism export revenues for Canada.Our vision: Inspire the world to explore Canada.Are we spending our moneyOur mission: Harness Canada’s collective voice to growin all the right export revenues. places?Our values: Innovation, Collaboration, Respect
OUR MANDATE• Generate wealth for Canadians by stimulating demand for Canada’s visitor economy through effective tourism marketing and promotions supported by aligned market research.OUR BUSINESS MODEL• Roles-based return on investment (ROI) model: target long-haul, high-spending consumers who tend to spend more and stay longer.• Provide leadership with representation in each of our 11 key markets.
ROLE OF DESTINATION MARKETERS ISTRANSFORMING• Emerging economies are investing heavily in tourism marketing (e.g. India, Turkey).• Internationally, progressive NTOs are re-vamping their models to be more efficient (e.g. VisitBritain, Tourism New Zealand, Tourism Australia).• Canadian marketing partners (i.e. PMOs and DMOs) are increasingly well-funded.• New US Corporation for Travel Promotion is a public- private partnership with the mission of promoting increased international travel to the US.
INTERNATIONAL TRAVELLERS’ AWARENESS • Travellers are more aware of countries rather than regions or attractions. Source: Global Tourism Watch, Unaided Destination Awareness (Harris/Decima 2010)
CANADA’S TOURISM INDUSTRYPERFORMANCE IN 2010 Canadian jobs: Domestic spending: 594,500 (-1.1% from 2009) $58.5 billion (+6.9% from 2009) CTC’s attributable contribution: Total tourism 16,569 spending: $73.4 billion CTC’s attributable (+6.7% from 2009) contribution: $244.2 million Foreign spending: $14.9 billion Federal tax (+5.7% from 2009) revenues: CTC’s attributable contribution: $9.4 billion (+5.8% from 2009) $1.9 billion
DOMESTIC VS. OVERSEAS* TRAVELLERS’SPENDING PER TRIP Domestic travellers in Canada Overseas* travellers $305/trip in Canada $1,400/trip*Overseas = Travellers from all CTC key markets, excluding the US.Note: Based on average for 2010.
CANADA HASWHAT IT TAKES TO COMPETE
LARGER COMPETITIVE SET 1950 World 1970 World 1990 World 2010 WorldRANK Share Share Share Share1 USA Italy France France2 Canada Canada USA USA3 Italy France Spain Spain4 France Spain Italy China5 Switzerland USA Hungary Italy6 Ireland Austria Austria UK7 Austria Germany UK Turkey8 Spain 97% Switzerland 75% Mexico 67% Germany 56%9 Germany Yugoslavia Germany Malaysia10 UK UK Canada Mexico11 Norway Hungary Switzerland Austria12 Argentina Czech Greece Ukraine13 Mexico Belgium Portugal Russia14 Netherlands Bulgaria Malaysia Hong Kong15 Denmark Romania Croatia CanadaOther 3% 25% 33% 44%Total 25 million 166 million 703 million 935 millionSource: UNWTO
LONG-HAUL INBOUND TRAVELRank 1999 20091 US US2 UK France3 France China4 Canada UK5 China Italy6 Germany Canada7 Italy Germany8 Spain Turkey9 Hong Kong Malaysia10 Mexico Hong Kong Source: Tourism Economics
HOW POLICY IMPACTS TOURISM BUSINESSImpact of implementation of Impact of US government dropping Impact of China grantingnew visa requirements for visa requirement for South Korean Approved DestinationMexican visitors in July 2009 travellers in late 2008 Status to the US in 2009
HOW WE MARKETCANADA TO THE WORLD
58% of the decision to visit Canada is driven by the tourism brandBRAND *Interbrand
Ranking of the Most Reputable Countries in the World Country RepTrak™ 2011 External G8 Scores
Free Cultural Authentic Spirits Explorers Experiencers • Active participation • Immersive • Historical emphasis • Shopping, dining • Beautiful scenery with • Authentic, living culture • Involves the main sites activities • Less family/group oriented, • Social events, festivals Product • Multi-faceted • Allows free exploration • Environmentally, socially, more one-on-one • Convenient responsible • Offers variety • Vibrant cities on edge of • Mix of city/town and • Places with rich history Place nature nature and cultural uniqueness • Cool accommodations • Multi-city trips • Secluded, off beaten path • Range of options • Will pay for unique • Reasonable price with à la • Menu of choices to experiences, local, ethical carte options products pick and choose Price • Value for money • Transparency of offering • Lively and direct • Varied /extensive media mix • Traditional media and • Strong new media • Include other traveler reviews internet presence • Social connection with locals • Practical details • Fun • Beautiful scenery/activities • Cater to older interests Promotion • Stylish • Active adventure • Stylish/creative • Less commercialCUSTOMER
What is a Signature Experience? An immersive, hands-on experiential offering that is alignedwith Canada’s tourism brand and is unique and differentiated, that engages local people and showcases special places. There are currently a total of 115 SEC members, including 2 from PEI: • Tong and Shuck – Future Seafoods Inc. / Experiences PEI • Giant Bar Clam Dig Adventure – Tranquility Cove Adventures
ESTIMATED OVERNIGHT VISITS BY CTC MARKET (000s) JANUARY- YEAR-TO-DATE AUGUST 2011 2011 US total 8,204 -2.3% UK 470 -5.6% France 320 +5.8% Germany 219 -5.9% Australia 168 +5.1% China 163 +23.4% Japan 132 -14.4% South Korea 109 -8.7% India 100 +5.8% Mexico 97 +7.0% Brazil 59 +9.7% Total key markets 10,042 -1.4% Total international markets 11,293 -1.5%Note: Statistics Canada preliminary estimates.Source: Statistics Canada, International Travel Survey.
OUR STRATEGY FOR THE NEXT YEAR • Focusing on generating tourism demand and export revenues. • Driving results for Canadian tourism industry and SMEs who create jobs. • Focusing on innovation and alignment. • Leveraging Canada’s strong brand. • Seeking competitive opportunities.