Realizing Canada’s International Tourism Potential

Realizing Canada’sInternational TourismPotentialGreg KlassenSVP MarketingCanadian Tourism CommissionNovember 20, 2012

How are you doing?

intersect impassetransition uncertainty crossroadschoice change continue hub alter course

Tourism 2012: what is it?

RELIANCE ON DOMESTIC TRAVELLERS 2001 2011 Spend per trip**Domestic market…big growth $36.2b $63.7b = $300US market… $10.4b $7.2bhit bottomOverseas market…flat $7.5b $8.0b = $1,459Travel deficit…ballooned $2.1B $16.3b*US/overseas figures are export revenue (not receipts), therefore include air fares and same-day travel **Average spend per traveller from the CTC’s key markets (excluding the US) per overnight trip to Canada in 2011 (source: International Travel Survey 2011, Statistics Canada).

Domesticrevenueaccounts for81%of tourismrevenue

…AND DOMESTIC Growth in outbound tourism spending since 2009 MARKET IS AT RISK 7th fastest growth in outbound spending since 2009 Hotel book of business is weak for next 2-3 years Starting to see ‘rust-out’ effect Domestic business is much less profitable & less long term growth

BRITAIN COMPETITION IS FIERCEBRAND USA AUSTRALIA BRAZIL

opening knocks evolution learning hard workchance opportunity luck progress reward risk growth

FUTUREBRAND COUNTRY BRAND INDEX2012-2013Rank 2005 2006 2007 2008 2009 2010 2011 2012 1 Italy Australia Australia Australia USA Canada Canada Switzerland 2 Australia USA USA Canada Canada Australia Switzerland Canada 3 USA Italy UK USA Australia NZ NZ Japan 4 France France France Italy NZ USA Japan Sweden 5 Maldives Greece Italy Switzerland France Switzerland Australia NZ 6 Greece UK Canada France Italy Japan USA Australia 7 Fiji Spain Spain NZ Japan France Sweden Germany 8 Thailand NZ NZ UK UK Finland Finland USA 9 Egypt Maldives Greece Japan Germany UK France Finland 10 Bahamas India Japan Sweden Spain Sweden Italy Norway 11 n/a n/a n/a n/a Switzerland Germany Germany UK 12 n/a Canada n/a n/a Ireland Italy Norway Denmark

MOST RECOMMENDEDDESTINATION TO VISIT“A strong country reputation builds stakeholder support, makingCanada a country people will recommend as a place to visit, investin, live in and work in.”– Nicolas Trad, Managing Partner, Reputation Institute

WHICH COUNTRIES ARE THE MOST ATTRACTIVE FOR KEY SUPPORTIVE BEHAVIORS? Visit Invest Live Canada 82.42 Switzerland 70.08 Canada 74.81 Australia 82.29 Canada 67.40 Australia 73.14 New Zealand 79.88 Sweden 66.16 Switzerland 70.97“… is a country I would recommend visiting” “… is a country I would recommend investing in” “… is a country I would recommend living in” © 2012 Reputation Institute, all rights reserved.

WHICH COUNTRIES ARE THE MOST ATTRACTIVE FOR KEY SUPPORTIVE BEHAVIORS? Continued… Buy Work Study Switzerland 72.22 Canada 73.66 Canada 74.16 Canada 72.11 Australia 71.54 U.K. 71.67 Sweden 71.17 Switzerland 71.49 Australia 71.62“… is a country I would recommend buying “… is a country I would recommend working in” “… is a country I would recommend studying in”products & services from” © 2012 Reputation Institute, all rights reserved.

Canada’s FederalTourism Strategy

Canada’s GlobalCommerceStrategy

Tourism 2020:what could be?

“If we can’t exportthe scenery, we’llimport the tourists.”

UNWTO 1950 Global Ranking UNWTO 1970 Global Ranking 1 US 1 Italy 2 Canada 2 Canada 3 Italy 3 France 4 France 4 Spain 5 Switzerland 5 US 6 Ireland 6 Austria 7 Austria 7 Germany 8 Spain 8 Switzerland 9 Germany 97% 9 Yugoslavia 75% 10 UK 10 UK 11 Norway 11 Hungary 12 Argentina 12 Czech 13 Mexico 13 Belgium 14 Netherlands 14 Bulgaria 15 Denmark 15 Romania Other 3% Other 25% Total 25 million Total 166 million

UNWTO 1990 Global Ranking 1 France 2 US 3 Spain 4 Italy 5 Hungary 6 Austria 7 UK 8 Mexico 9 Germany 67% 10 Canada 11 Switzerland 12 Greece 13 Portugal 14 Malaysia 15 Croatia Other 33% Total 703 million

UNWTO 2011 Global Ranking 1 France 2 US 3 China 4 Spain 5 Italy 6 Turkey 7 UK 8 Germany 9 Malaysia 56% 10 Mexico 11 Austria 12 Russia 13 Hong Kong 14 Ukraine 15 ThailandCanada 2011- Other 44%18th place Total 983 million

What we’ve learned

CANADA’S INTERNATIONALTOURISM BRAND

 market share, revenue FREE SPIRITS potentialTarget CULTURAL EXPLORERS  age, gender, incomethe right AUTHENTIC  travel motivators – trip type, accommodation, food,customers EXPERIENCERS NO-HASSLE TRAVELLERS activities  preferred media sources for inspiration, planning, advocacy GENTLE EXPLORERS  what sorts of Canadian REJUVENATORS tourism experiences appeal to them  marketing considerations – messaging, voice, personality

SOCIAL MEDIAPlatforms for realtravellers to provide usthat powerful ‘advocacy’

Bringing Canada’sUnique SellingPropositionsto life through theSignatureExperiencesCollection

IN 2011 THE CTC…For every $1 dollar invested in advertising, $37flowed intothe country’s tourism sector created orGenerating $15b in export revenue protectedCTC with partner’s effortsgenerated an estimated and $180 4,781 tourism jobs$590 million in million in government tax across thetourism revenue for Canada’s revenues countryeconomy

challenge enigma perplexing conjecture stumped solve paradox puzzle conundrum unexplained confusion riddle

FutureBrand CBI DIMENSIONSCountry Brand TOURISM HERITAGE & CULTUREIndex 2012-2013Canada climbed 7 places in tourism dimensionCanada climbed 15 places in heritage & culture

Canada improved its rank significantly among keyattributes for TOURISM 2012 KEY TOURISM ATTRIBUTES VALUE FOR MONEY ATTRACTIONS RESORT & LODGING OPTIONS 4 th 6 th 10 th ↑ from 17th in 2011 ↑ from 16th in 2011 ↑ from 14th in 2011 SHOPPING FOOD NIGHTLIFE 12 th 11 th 12 th ↑ from 15th in 2011 ↑ from 30th in 2011 ↑ from 17th in 2011

Canada improved its rank significantly among keyattributes for HERITAGE & CULTURE 2012 KEY HERITAGE & CULTURE ATTRIBUTES ART & CULTURE AUTHENTICITY NATURAL BEAUTY 15 th 12 th 6 th ↑ from 29th in 2011 ↑ from 34th in 2011 ↑ from 15th in 2011

fromAWARENESS to CONVERSION

Only20%of Canada’s customersmake it to the point ofimaging themselves inCanada.

USA TOURISM SUCCESS STORY Brand USA

OVERNIGHT TRIPS US VS. CANADA Arrivals 10:1 US : CA Source: Statistics Canada, ITS, OTTI

CANADA’S TOURISM EXPORTREVENUE IS ONE TENTH OF THE US EXPORT REVENUE U.S. $153 B Canada $ 15 B Source: Statistics Canada, NTI, OTTI

AIR SEAT CAPACITYOverseas seat capacity: Canada vs. USMillions of seats, 2000 – 2012 (source: Diio Mi) 2000 2012 81.2 74.4 7.0 11.1 US Canada

US TOP OF MIND

How will we competewith Brand USA?

LEVERAGE OUR COMPETITOR’S MARKETMUSCLE Brand USA

Massive Marketing Active spend consideration visitation and repeat $200MLeverage Brand USA strengths #1 destination Proximity Air access for all our to Canada EQ segments

US is already the gateway to Canada for all our markets. US Canada

ego energy hubris convictionidentity composure pride reputation trust confidence courage assured self-esteem belief

Channel strategyWe have big consideration hurdles. 66% Fall off Barriers: Distance. Cost. UnderstandingSource: P2P Research 49

Channel strategyAggressively interceptat point of purchase. 50

+Canada

+Canada Pilot……in reaction to Brand USA, promoting thedual-nation vacation

Banners

Travel agent poster 54

Travel agent poster 55

Small space 56

2017 YOUTH STRATEGY

35 MILLION DIRECTORS

2013 GLOBAL COMMERCE STRATEGY 5 Structured Sector Practices Aerospace Clean Technology (Wind, Solar etc) Infrastructure/Engineering Business Life Sciences Events Information/Communication Technology Canada 2 Key Priorities Natural Resources Agriculture & Food

SET YOUR ALARMTOURISM 2020Nov 20, 2020?What will tourism forCanada look like?

http://en-corporate.canada.travel	23
https://twitter.com	21
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http://uat.en-corporate.canada.travel	1

Realizing Canada’s International Tourism Potential

by Canadian Tourism Commission / Commission canadienne du tourisme on Dec 05, 2012

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