CANADIAN TOURISM COMMISSIONMichele McKenzie, President & CEOAnnual Public Meeting – October 3, 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 4
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. 5
CTC Does CTC Does NotGenerate international demand for Undertake activities that cannot beCanada through innovative marketing. measured.Create business to business sales & Support international trips without amarketplace opportunities for firm business purpose.Canadian business.Work with Provinces/Territories & Grant to 3rd parties or provideprivate sector with ease on a subsidies to other levels ofcommercial footing. government.Market Canada’s tourism brand and Have vertical niche productthose experiences that best exemplify campaigns to support one sub-“Canada. Keep Exploring”. sector over another.Provide leadership in Canada and Spend time or resources onglobally with cutting edge marketing research or other activities that doresearch. Pertinent business not support demand generation.information for Canadian business. CTC is not a think tank. 7
NTO COMPETITIVE FUNDING LEVELSTourism marketing organization 2010 base appropriations ($CDN)*Tourism India $248.5 millionTourism Ireland $211.3 millionTourism Australia $147.1 millionTourism Malaysia $128.2 millionLas Vegas Convention & Visitors Authority $119.7 millionSouth Africa Tourism $118.1 millionAtout France $111.5 millionKorea Tourism Organization $94.2 millionTourism New Zealand $88.5 millionBrazil Ministry of Tourism $83.9 millionThe Bahamas Ministry of Tourism $81.8 millionSwitzerland Tourism $80.0 millionCanadian Tourism Commission $77.4 millionHawaii Tourism Authority $73.9 millionCalifornia Travel & Tourism Commission $51.5 millionVisitBritain $48.6 million
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*Overseas = Travellers from all CTC key markets, excluding the US. $1,400/tripNote: Based on average for 2010.
November 5, 2010:CANADA NAMED #1 COUNTRY BRAND
February 10, 2011:ANNIVERSARY OF THE2010 WINTER GAMES
February 22, 2011:LAUNCH OF CANADA’S FIRST CONSUMER-FOCUSED AD CAMPAIGN IN CHINA
May 15-18, 2011:RENDEZ-VOUS CANADA 2011 IN QUÉBEC CITY
May 15, 2011:OPENING OF “SIGNATURE EXPERIENCESCOLLECTION” APPLICATION PROCESS What is a Signature Experience? An immersive, hands-on experiential offering that is aligned with Canada’s tourism brand and is unique and differentiated, that engages local people and showcases special places.
June 15, 2011:INAUGURAL FLIGHT OF CHINA SOUTHERNAIRLINES
June 30 – July 8, 2011:DUKE AND DUCHESS OF CAMBRIDGE ROYALVISIT TO CANADA
July 10, 2011:ANNOUNCEMENT OF $5 MILLION TO PROMOTECENTENNIAL OF CALGARY STAMPEDE IN 2012
July 11, 2011:LAUNCH OF THE INAUGURAL “SIGNATUREEXPERIENCES COLLECTION”
August-September 2011:LAUNCH OF THE “EXPLORE CANADA LIKE ALOCAL” WEBSITE
September 27, 2011:REPUTATION INSTITUTE NAMES CANADA THEMOST REPUTABLE COUNTRY IN THE WORLD
ESTIMATED OVERNIGHT VISITS BY CTC MARKET (000s) JANUARY- YEAR-TO- JULY 2011 DATE 2011 US total 6,531 -1.7% UK 381 -5.2% France 248 +7.2% Germany 168 -6.0% Japan 104 -15.8% Australia 140 +5.8% China 128 +21.9% South Korea 92 -7.0% India 83 +6.0% Mexico 82 +6.2% Brazil 50 +9.9% Total key markets 8,007 -1.4% Total international markets 9,015 -1.0% 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.