Visa usa-tourism-2011-2

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Visa usa-tourism-2011-2

  1. 1. TOURISM OUTLOOKUnited StatesAPRIL 2011
  2. 2. T O U R I S M O U T L O O K | U N I T E D S TAT E SIntroduction At this time last year, I wrote of the vitality of tourism to local, national and global economic growth, despite a depressed and challenging economy. Following severe but expected drops in tourism spending in both 2008 and 2009, we were hopeful that 2010 would bring about significant global economic recovery and with it, more positive news for the travel and tourism industry. Today, I am pleased to write that U.S. and international Visa cardholders were optimistic in2010, took more trips and increased their spending on international tourism. Last year, U.S. and international Visacardholders increased spending across a majority of key merchant categories.1 Total inbound tourism spending onVisa cards by international travelers visiting the U.S. increased by 18 percent from 2009.2 Outbound internationaltravel and tourism also rebounded, with major sporting events such as the 2010 FIFA World Cup South Africa andVancouver 2010 Olympic Winter Games beckoning U.S. travelers to venture outside the country.Support from the U.S. government via the Travel Promotion Act, which aims to attract foreign tourists to the U.S.by improving international perception of the country, and the Visa Waiver Program, which in 2010 allowed citizensfrom certain countries to travel to the U.S for tourism or business for up to 90 days without having to obtain avisa, also likely contributed to these impressive rises in U.S. travel and tourism spending.Visa is committed to providing the U.S. tourism industry with accurate, comprehensive and current spendinginformation, known as VisaVue Travel Data, to help the country and its tourism entities accomplish theirobjectives of long-term and sustainable growth. As such, we are very pleased to present Visa’s fourth annualTourism Outlook: USA report. This annual publication details spending on Visa cards by international visitors to theU.S., as well as spending by U.S. travelers overseas, for the previous two years.Visa digital currency is transforming the world, bringing us closer together and providing secure economicempowerment to more people than ever before. It is currency that enables a shopper to buy gifts in mid-air, whilereturning from vacation, and a merchant in Florida to process a transaction with a tourist from Istanbul. As theworld’s largest retail electronic payments network, Visa has the unique ability to provide valuable insights to fostera better understanding of where and how travelers are spending their money. Turning Visa transaction data intoactionable information enables Visa to provide U.S. retailers, businesses and tourism partners critical spendingdata to help create targeted tourism programs that promote the country’s growth.As the use of digital currency continues to play a significant role in the everyday lives of local and internationalconsumers alike, Visa will continue to work with its partners in the tourism industry to ensure that both residentsand visitors to the U.S. enjoy the benefits of electronic payments.William M. SheedyGroup President, AmericasVisa Inc.1 VisaVue Travel Data, 2009 - 20102 VisaVue Travel Data, 2009 - 2010 Page 3
  3. 3. In 2010, international touristarrivals were up by almost 7%
  4. 4. T O U R I S M O U T L O O K | U N I T E D S TAT E SOverview The U.S. contributes an enormous amount to the global tourism economy. When the recession first hit the U.S. in the fall of 2008, the effects swept across the country like a wildfire and quickly engulfed the rest of the world. According to last year’s Tourism Outlook: USA report, international travel by U.S. tourists decreased drastically, and the amount spent by international visitors to the U.S. declined just as quickly. 3 In 2010, the global tourism industry showed signs of strength. According to the United Nations World Tourism Organization (UNWTO), international tourist arrivals were up by almost 7 percent to 935 million.4 According to VisaVue travel data, spending by international Visa cardholders traveling to the U.S. yielded a significant $34 billion in total spend.5 Similarly, spending by Visa cardholders traveling outside of the U.S. also grew, with U.S. travelers spending nearly $31 billion on Visa payment cards outside the country, a 6 percent increase over 2009.5 Perhaps even more promising was the fact that growth in spending by both U.S. and international Visa cardholders was registered across 92 percent of merchant segments.5 Lodging and restaurants both recognized significant double-digit increases from inbound and outbound tourism spending – a stark contrast to the declines of 2008 and 2009. 5 Looking ahead, tourism operators in the U.S. have continued reasons for optimism. As the gradual rebound of the global economy continues, so does the recovery of consumer confidence, which will continue to drive travel and tourism spending. Visa has been a longtime supporter of tourism industries around the world, and this report is intended to be a tool that provides insight on how to support tourism’s contribution to national and global economies so that the industry is well-positioned for years to come. 3 VisaVue Travel Data, 2008 - 2009 4 UNWTO World Tourism Barometer, Advance Release, January 2011 5 VisaVue Travel Data, 2009 - 2010 Page 5
  5. 5. T O U R I S M O U T L O O K | U N I T E D S TAT E S United States Inbound Tourism Spending The U.S. travel and tourism industry scored a major victory in 2010 when President Barack Obama approved the first-ever national travel promotion and communications program to attract more international visitors to the U.S. Funded through fees and private sector contribution, the Travel Promotion Act aims to attract foreign tourists to the U.S. by improving international perception of the country. In addition to the Act, the U.S. also instituted the Visa Waiver Program in 2010 allowing citizens from specific countries to travel to the U.S. for tourism or business for up to 90 days without having to obtain a visa. These initiatives, along with improved global economic conditions in 2010, led to a rise in spending on Visa cards by international travelers visiting the U.S. Similar to last year, visitors from Canada and the United Kingdom made the largest contribution to U.S. inbound tourism spending during 2010.6 Canadian travelers spent $9.2 billion on their Visa cards when traveling to the U.S. last year, up 18 percent over 2009 spending, while travelers from the United Kingdom spent just over $2.5 billion, up 11 percent from the previous year.6 This was followed by Mexico ($2 billion), Brazil ($1.9 billion), Japan ($1.8 billion) and China ($1.1 billion).6 Of the top 25 contributors to U.S. tourism revenue, Visa cardholders from China (64%), Brazil (63%), Saudi Arabia (61%), Colombia (42%), and Russia (42%) had the largest growth in 2010 compared to 2009.6 Furthermore, 15 of the top 25 source countries saw double-digit growth from 2009 to 2010.6 6 VisaVue Travel Data, 2009 - 2010Page 6
  6. 6. Top 2010Inbound Source CountriesCanada | +18% $9.2B $7.8BUnited Kingdom | +11% $2.5B $2.3BMexico | +18% $2.0B $1.7BBrazil | +63% $1.9B $1.2BJapan | +6% $1.8B $1.7BChina | +64% $1.1B $700MAustralia | +32% $1.1B $861MFrance | +6% $1.0B $975MSouth Korea | +27% $824M $651MGermany | +4% $800M $769M 2010 2009 Page 7Source: VisaVue Travel Data, 2009 - 2010
  7. 7. 2010 Monthly ComparisonPerhaps one of the most significant signs of spending increases on Visa cards, with eachtourism recovery is the consistent increase in month netting around $3.1 billion dollars ininternational travelers visiting the U.S. each tourism revenue.7month in 2010. The month with the greatest increase wasWhile August and July were the most popular May (25%), followed by March and April,months for international travelers to the U.S., which each saw 23 percent growth.7October through December also saw significant 7 VisaVue Travel Data, 2009 - 2010Month-to-MonthInbound International Spending ComparisonJanuary | +13% $2.6B $2.3BFebruary | +18% $2.3B $1.9BMarch | +23% $2.7B $2.2BApril | +23% $2.8B $2.3BMay | +25% $2.8B $2.2BJune | +18% $2.5B $2.1BJuly | +19% $3.1B $2.6BAugust | +15% $3.3B $2.9BSeptember | +14% $2.9B $2.5BOctober | +15% $3.1B $2.7BNovember | +20% $3.1B $2.6BDecember | +13% $3.1B $2.7B 2010 2009Source: VisaVue Travel Data, 2009 - 2010Page 8
  8. 8. August and July were the most popularmonths for international travelers to the U.S. Page 9
  9. 9. State-by-State Tourism GrowthAccording to VisaVue data, travel destinations the biggest year-over-year growth were Northsuch as Florida, New York, California, Texas Dakota (39%), Tennessee (33%), Utah (27%),and Nevada were the most popular states and Wisconsin (26%).10 In total, 48 of the 50amongst international travelers to the U.S. states reported year-over-year increases induring 2010.8 Disney World, Times Square and spending on Visa cards, and of those states,Las Vegas were some of the top destinations 46 saw double-digit year-over-year growth.10within those states, respectively.9International visitors to Florida contributedmore than $6.6 billion on their Visa cards in2010, followed by New York ($5.6 billion) andCalifornia ($5.4 billion).10 States which saw 8 VisaVue Travel Data, 2009 - 2010 9 “Top 25 Most Visited Tourism Destinations in America,” TheTravelZone.com, May 10, 2011 10 VisaVue Travel Data, 2009 - 2010Top 5 U.S. States Based on Inbound International Spending New York +22% Nevada +21%California +19% Texas +16% Florida +17%Page 10
  10. 10. Top 2010U.S. States Based on Inbound International SpendingFlorida | +17% $6.6B $5.7BNew York | +22% $5.6B $4.6BCalifornia | +19% $5.4B $4.5BTexas | +16% $2.1B $1.8BNevada | +21% $1.8B $1.5BHawaii | +16% $1.3B $1.2BWashington | +22% $980M $805MArizona | +17% $802B $688MIllinois | +16% $799M $686MMassachusetts | +18% $784M $665M 2010 2009Source: VisaVue Travel Data, 2009 - 2010 Page 11
  11. 11. Top 2010Outbound Destination CountriesCanada | +8% $3.5B $3.3BMexico | +7% $3.1B $2.9BUnited Kingdom | +7% $1.6B $1.5BItaly | +4% $1.3B $1.3BFrance | +4% $1.3B $1.2BGermany | -2% $1.1B $1.2BPuerto Rico | +9% $1.1B $967MChina | +18% $741M $626MSpain | +5% $731M $695MJapan | +7% $659M $614M 2010 2009 Page 12Source: VisaVue Travel Data, 2009 - 2010
  12. 12. United States Outbound SpendingU.S. travelers ventured outside the country $3.1 billion during 2010, followed by popularat an increased rate in 2010, spending nearly European destinations including the United$31 billion on Visa payment cards, a 6 percent Kingdom ($1.6 billion), Italy ($1.3 billion),increase over 2009.11 France ($1.3 billion) and Germany ($1.1 billion).11However, American travelers continued to stay Of the top 10 most popular internationalcloser to home while traveling internationally destinations amongst U.S. travelers, all but onein 2010, as Canada and Mexico were the saw moderate year-over-year growth accordingmost popular destinations according to Visa to Visa cardholder spending data.11 Of thesecardholder spend data.11 countries, China (18%) saw the biggest year- over-year growth, followed by Puerto Rico (9%),Canada was the most popular destination Canada (8%), Mexico (7%), and Japan (7%).11for U.S. international travelers, as they spent$3.5 billion on their Visa payment cards in thecountry during 2010.11 Mexico was a closesecond, with American travelers spending 11 VisaVue Travel Data, 2009 - 2010Top 5 Outbound Destination Countries Canada +8% United Kingdom +7% France +4% Italy +4% Mexico +7% Page 13
  13. 13. T O U R I S M O U T L O O K | U N I T E D S TAT E S Digital Currency and Team Spirit International sporting events were popular among American international travelers in 2010. At both the Olympic Winter Games and FIFA World Cup, U.S. international travelers spent more on their Visa cards than travelers from any other country.12 As evidenced by Visa’s proprietary spend data, events of this scope and magnitude have significant and lasting effects on their host country. As a proud Worldwide Sponsor of the Olympic Games and a partner of the FIFA World Cup™, Visa is uniquely qualified to help the U.S. understand where its consumers are traveling, to help establish effective cross-border tourism partnerships that fuel economic growth. World Cup Stats • More than 30,000 U.S. travelers made their way to South Africa for the 2010 FIFA World Cup.13 • U.S. travelers visiting South Africa during the FIFA World Cup spent more than $59 million on their Visa cards.14 • Interest in the 2010 FIFA World Cup spurred dramatic year-over-year growth for U.S. travelers visiting South Africa, as spending on Visa cards by American travelers increased by 21 percent from 2009 to 2010.14 Olympic Winter Games Recap • The number of U.S. travelers visiting Canada rose by almost 6 percent from the previous year during the Vancouver 2010 Winter Olympic Games.15 • American travelers visiting British Columbia during the Vancouver Winter Olympic Games spent approximately $61 million on their Visa cards.16 12 VisaVue Travel Data, 2009 - 2010 13 South Africa Ministry of Tourism, South Africa, December 2011 14 VisaVue Travel Data, 2009 - 2010 15 Statistics Canada, April 2010 16 VisaVue Travel Data, 2009 - 2010Page 14
  14. 14. Proud Worldwide Sponsor ofthe Olympic Games and aPartner of the FIFA World Cup™ Page 15
  15. 15. Tourism Spending by Market Segment Inbound International travelers using their Visa card, showed signs of caution over the past two years. The amount spent within popular categories, including lodging, retail, restaurants, and airlines saw extreme decreases from 2008 to 2009.17 However, according to 2010 VisaVue Travel Data, international Visa cardholders are feeling more optimistic about economic recovery and are spending within key U.S. tourism market segments accordingly.18 17 VisaVue Travel Data, 2008 - 2009 18 VisaVue Travel Data, 2009 - 2010Page 16 13 VisaVue Travel Data, 2009 - 2010
  16. 16. 2010Inbound Cardholder Spending by Market Segment $14B $13B $12B $5.2B $5B Department Stores $4.3B General Retail Restaurants $1.7B $1.8B $1.6B $1.6B Lodging Airlines $1.4B $1.3B $1.2B $1.2B $1B After a sharp The airline industry After double-digit drops from 2008 to 2009, In 2010, general retail 15 percent drop saw a significant international Visa cardholders reinvigorated purchases made by from 2008 to 2009, 24 percent increase spending on both lodging and restaurants. international Visa spending at in spending by Lodging increased from $4.3 billion in 2009 cardholders increased department stores international Visa to $5.0 billion in 2010 and represented by 16 percent, totaling saw positive growth cardholders in 2010, almost 15 percent of total international Visa more than $14 billion in 2010. Spending by surpassing cardholder spend in 2010. Restaurants compared to international Visa pre-recession increased from $1.6 billion in 2009 to $12 billion in 2009. cardholders increased spending by more $1.8 billion in 2010 and represented more This impressive spend from $1.0 billion to than $2.0 million. than 5 percent of total international amount represents $1.2 billion. cardholder spending last year. 42 percent of total international Visa cardholder spending in 2010.VisaVue Travel Data, 2009 - 2010
  17. 17. Tourism Spending by Market Segment Outbound Similar to the patterns of international Visa continue to grow. Visa will work with retailers, cardholders traveling to the U.S., American businesses and its U.S. tourism partners to travelers using their Visa cards increased provide critical spending data that will help the spending throughout key market segments in country create targeted tourism programs that 2010, making a tremendous comeback promote the country’s growth. from the 2008 to 2009 period. As the global economy steadily recovers, consumer confidence will continue to rise and spending by international travelers will likelyPage 18
  18. 18. 2010Outbound Cardholder Spending by Market Segment $19.1B $15.9B $15.4B Other Travel & Entertainment $6.2B $5.6B $5B General Retail Restaurants $2.7B Lodging Airlines $1.8B $1.8B $1.6B $1.8B $900M $899M $999M $1.1B From 2008 to 2009, After a dramatic Visa cardholders from the U.S. reinvigorated General retail the airline industry 19 percent dip from spending on both lodging and restaurants. purchases made by su ered dramatically 2008 to 2009, Lodging increased from $5.0 billion in 2009 U.S. Visa cardholders and absorbed a other travel and to $5.6 billion in 2010 and represented traveling 66 percent loss. entertainment related 18 percent of total international Visa cardholder internationally In 2010 that number expenses saw a spending in 2010. Restaurants increased from totaled nearly has plateaued to 12 percent increase $1.6 billion in 2009 to $1.8 billion in 2010 and $16 billion compared $889 million. in 2010. The amount represented 6 percent of total international Visa to $15 billion in 2009, spent in this popular cardholder spending last year. representing an category by U.S. Visa extraordinary cardholders traveling 52 percent of total internationally spending by U.S. Visa represented 3 percent cardholders traveling of total tourism internationally in 2010. spending on Visa cards ($1.1 billion).VisaVue Travel Data, 2009 - 2010
  19. 19. T O U R I S M O U T L O O K | U N I T E D S TAT E S Looking Ahead 2010 proved to be a successful year for the U.S. tourism economy and many of the industry’s key stakeholders are doing everything within their power to ensure a similar story unfolds in the year ahead. As we move into 2011, tourism and business entities all over the world will need to carefully monitor not only the longer-term effects of the devastating economic crisis, but also from current events that take us by surprise throughout the year, like the disastrous earthquake and tsunami in Japan this past March. While the global effects of this catastrophic event are still unknown, it is inevitable that the international travel and tourism industry will be affected. For the U.S. alone, Japanese Visa cardholders were the fourth-largest source of tourism spend in 2010, contributing $1.8 billion.19 Visa is committed to working with its tourism partners and will share important Visa cardholder travel spending data to help these groups better understand how to navigate the long-term impacts of the recent economic crisis and any natural disasters. By providing not only the currency for cross-border transactions, but also a reliable and secure global payments network that includes millions of cardholders around the world, Visa is committed to working with the global tourism industry and regional businesses to support continued growth. For more information regarding Tourism Outlook: USA and Visa’s tourism initiatives, please contact globalmedia@visa.com. 19 VisaVue Travel Data, 2009 - 2010Page 20
  20. 20. MethodologyVisa cardholder spending data cited is based upon a review of cross-border spending on Visa-branded payment cards by cardholders fromkey source countries while in the U.S. during the calendar years 2009(January 1 – December 31, 2009) and 2010 (January 1 – December31, 2010). These findings are based upon VisaVue® Travel data.Visa introduced the VisaVue® Travel tourism reports to U.S. tourismorganizations in 2008 and continue to provide them to paid subscriberswithin the destination marketing community. The reports are sharedwith a broad audience of state and convention and visitors bureaudestination marketing entities provided to paid subscribers within thedestination marketing community. Page 21
  21. 21. T O U R I S M O U T L O O K | U N I T E D S TAT E SAppendix
  22. 22. Appendices TOP 2010 INBOUND SOURCE COUNTRIES Issuer Country 2010 2009 Percent Growth (+/-) 1 Canada $9.2B $7.8B 18% 2 United Kingdom $2.5B $2.3B 11% 3 Mexico $2.0B $1.7B 18% 4 Brazil $1.9B $1.2B 63% 5 Japan $1.8B $1.7B 6% 6 China $1.1B $700M 64% 7 Australia $1.1B $861M 32% 8 France $1.0B $975M 6% 9 South Korea $824M $651M 27% 10 Germany $800M $769M 4% Source: VisaVue Travel Data, 2009-2010 2010 MONTH-BY-MONTH INBOUND INTERNATIONAL SPENDING COMPARISON Month 2010 2009 Percent Growth (+/-) • January $2.6B $2.3B 13% • February $2.3B $1.9B 18% • March $2.7B $2.2B 23% • April $2.8B $2.3B 23% • May $2.8B $2.2B 25% • June $2.5B $2.1B 18% • July $3.1B $2.6B 19% • August $3.3B $2.9B 15% • September $2.9B $2.5B 14% • October $3.1B $2.7B 15% • November $3.1B $2.6B 20% • December $3.1B $2.7B 13% Source: VisaVue Travel Data, 2009-2010Page 24
  23. 23. AppendicesTOP 2010 U.S. STATES BASED ON INBOUND INTERNATIONAL SPENDING Issuer Country 2010 2009 Percent Growth (+/-)1 Florida $6.6B $5.7B 17%2 New York $5.6B $4.6B 22%3 California $5.4B $4.5B 19%4 Texas $2.1B $1.8B 16%5 Nevada $1.8B $1.5B 21%6 Hawaii $1.3B $1.2B 16%7 Washington $980M $805M 22%8 Arizona $802M $688M 17%9 Illinois $799M $686M 16%10 Massachusetts $784M $665M 18%Source: VisaVue Travel Data, 2009-2010TOP 2010 OUTBOUND DESTINATION COUNTRIES Issuer Country 2010 2009 Percent Growth (+/-)1 Canada $3.5B $3.3B 8%2 Mexico $3.1B $2.9B 7%3 United Kingdom $1.6B $1.5B 7%4 Italy $1.3B $1.3B 4%5 France $1.3B $1.2B 4%6 Germany $1.1B $1.2B -2%7 Puerto Rico $1.1B $967M 9%8 China $741M $626M 18%9 Spain $731M $695M 5%10 Japan $659M $614M 7%Source: VisaVue Travel Data, 2009-2010 Page 25
  24. 24. Appendices OUTBOUND TRANSACTION VOLUME IN TOP MERCHANT CATEGORIES - THREE YEAR COMPARISON Country 2008 2009 Percent Change 2010 Percent Change 1 General Retail $19.1B $15.4B -19% $15.9B 3% 2 Lodging $6.2B $5.0B -19% $5.6B 13% 3 Restaurants $1.8B $1.6B -12% $1.8B 12% 4 Other Travel & $1.8B $999M -43% $1.1B 7% Entertainment 5 Airlines 2.7B $900M -66% $899M — Source: VisaVue Travel Data, 2008-2010 INBOUND TRANSACTION VOLUME IN TOP MERCHANT CATEGORIES - THREE YEAR COMPARISON Issuer Country 2008 2009 Percent Change 2010 Percent Change 1 General Retail $13.0B $12.0B -8% $14.0B 16% 2 Lodging $5.2B $4.3B -18% $5.0B 18% 3 Restaurants $1.7B $1.6B -10% $1.8B 15% 4 Airlines $1.4B $1.3B -6% $1.6B 24% 5 Department Stores $1.2B $1.0B -15% $1.2B 3% Source: VisaVue Travel Data, 2008-2010Page 26
  25. 25. AppendicesMETHODOLOGYVisa payment card spending by international visitors in the U.S. cited in the previous pageswas evaluated across the following broad merchant spending categories:• Airlines• Auto Rental• Lodging• Healthcare• Business to Business Includes printing, freight, commercial goods, industrial supplies, stationery, office supplies, uniforms, etc.• Other Retail Includes general merchandise, contractors, confection, bakeries, home supply, lumber, paint, garden supply, clothing, software, music, wine/liquor, antiques, bookstores, jewelry, toys, camera/photo supply, luggage/leather, glassware, cosmetics, newsstands, etc.• Remaining Merchant Includes railroads, marinas, ATMs, financial institutions, insurance, money transfers, etc.• Other Emerging Includes local commuter transport, taxis, etc.• Other Travel & Includes buses, boat rentals, airport purchases, duty free Entertainment purchases, home furnishings, catering, bars, casinos, golf courses, etc.• Steamship/Cruise Lines• Bill Pay Includes courier services, warehousing/storage, telecommunication services, internet services, and utilities• Travel Agencies• Toll and Bridge Fees• Wholesale Clubs• Discount Stores• Department Stores• Supermarkets• Oil• Furniture/Equipment Stores• Radio, TV and Stereo Stores• Restaurants• Quick Service Restaurants• Drug Store and Pharmacies• Sporting Goods Stores• Direct Marketing• Government Page 27
  26. 26. T O U R I S M O U T L O O K | U N I T E D S TAT E S © 2011 Visa Inc. All rights reserved.Page 28

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