Canadian tourism industry update to the Tourism Industry Association of Canada November 25, 2014

1. Tourism Congress 2014
Tourism Industry Association of Canada
November 25, 2014

3. Four Key Questions
How are we doing….really?
What’s the upside?
Who’s responsible (the case for alignment)?
What’s next?

4. How are we doing…really?

5. UNWTO International Tourist Arrivals 2013
CANADA 1.5%
US 4.6%
Biggest competitor
+5% WORLD
5

6. Country Rankings
The top 20 countries barely
comprise 50% of total
visitation.
Between 2013/2010:
•Turkey 37%
•United States 16%
•Spain 15%
•United Kingdom 11%
•Canada 3%

7. Canada’s Share of Outbound Travel
Ten core non-North
American source
markets
% Penetration of total
outbound by year:
2001….2012
Declining penetration
from every country, in
every year, except
China/Hong Kong

8. Adjusted Overnight Spending
The decline in
overnight spending is
more pronounced in
constant $.
Almost one-third less
spending when inflation
adjusted.
Overnight Visitor Spending (Current vs 2007 Constant $)

9. Total Tourism Spending in Canada (2007 Constant $)
2000
Domestic 67%
Foreign 33%
2012
Domestic 80%
Foreign 20%
$61.44 billion $75.06 billion
Source: Statistics Canada Table 387-0001. Tourism Domestic Spending is the spending in Canada by Canadian visitors on domestically produced commodities. Foreign Tourism
Spending is spending by foreign visitors on Canadian-produced tourism goods and services. It includes spending that may take place outside of Canada, for instance, the purchase of an
airline ticket from a Canadian international carrier, to travel to Canada. It does not include expenses of crew members or medical and educational expenses.

10. Comparison of Domestic Spend
Canadians are among
the world’s most prolific
spenders…and a
highly-coveted market.

11. Canada’s Travel Deficit Continues to Grow

12. What’s the Upside?

13. Lots of Positive Signals . . .
Youth market—under 24
component grew to over 20%
of total arrivals in 2012
…..France largest growth %
Global Instagram activity tied
to CTC social media efforts
quadrupled in 2013

14. Lots of Positive Signals . . .
Business Events Canada
(BEC) secured $120m in
future business in Canada
Canada added 150,000
seats to existing overseas
capacity last year, primarily
to/from China, next to/from
France

15. Lots of Positive Signals . . .
• Broad-based benefit of Canadian Signature Events
• Ground breaking “Explorer Quotient” Initiative
• Federal tax generated by CTC programs: $72m
with a payback of 1.2:1

16. U.S. Passport Ownership on the Rise
U.S. passport
ownership has doubled
in the last decade.
More than 100 million
Americans able to
travel internationally.
U.S. overnight trips to
Canada remain
anemic.

17. Canadian Penetration into American Travel
Despite surge in passport
ownership…limited increase in
U.S. outbound travel:
• 61.3 million outbound in 2000
vs. 61.9 million outbound in
2013
• Canadian penetration into U.S.
outbound has fallen from 28%
to 19%.
• Caribbean and Mexican
destinations picked up most
incremental outbound.

18. Fundamental Shift in U.S. Fly vs. Drive
• Growing air capacity from/between major
U.S. and Canadian cities
• U.S. air arrivals to Canada up 7.3% YTD
August 2014
• PhoCusWright research shows that:
– Canada is top of mind for 7% of
Americans planning vacations.
– Previous vacation experience a
good indicator of future interest
– Vancouver, Toronto and Montreal
leading destinations

19. All “Tourism” Spending is Not the Same
Core tourism commodities/services:
• Lodging
• Food Beverage
• Recreation Entertainment
• Transportation (within Canada)
Other spending includes:
• Groceries
• Retail purchases
• Living expenses
U.S. travellers spend more on “core” tourism commodities than any other travellers

20. The Two-Nation Vacation
International Visitors to Canada that
visited the U.S. Prior to Arrival (2012)
USA: Partner or Competitor?
• Complete alignment on target markets
• 21% of visitors to Canada stopped in
U.S. first
• Greater prevalence with greater distance
travelled

21. Who’s Responsible?

22. Marketing, Advocacy Sector Organizations (A-G)
Albert County Tourism Association British Columbia Hotel Association Destination Osoyoos
Alberta Bed Breakfast Association Burin Heritage Tourism Association Destination Southwest Nova Scotia
Alberta Country Vacations Association Camping in Ontario Destination St. John’s
Alberta Culinary Tourism Alliance Canada West Ski Areas Association Digby Area Tourism Association
Alberta Hotel Lodging Association Canadian Airports Council Eastern Manitoba Tourism Association
Alberta Sport Connection Canadian Badlands Eastern Newfoundland Tourism Partnership
Alberta's Lakeland Tourism Canadian Camping and RV Council Economic Development Lethbridge
Association des Hôteliers du Quebec Canadian Garden Tourism Council Edmonton Tourism
Association des hôtels du grand Montreal Canadian Inbound Tourism Association Asia Pacific Edson and District Chamber of Commerce
Association of Canadian Travel Agencies (ACTA) Canadian Sport Tourism Alliance (CSTA) Explore Southwest Alberta
Association québécoise de l'industrie touristique Cariboo Chilcotin Coast Tourism Association Explorers' Edge
Athabasca County Cavendish Beach PEI Festivals and Events Ontario
Atlantic Canada Tourism Partnership Central Counties Tourism (RTO 6) Festivals and Major Events Canada
Atlantic Canada Trails Association Central Nova Tourist Association Forks North Portage Partnership
Attractions Ontario Chinook Country Tourist Association Fort McMurray Tourism
ATV Ontario Clarington Tourism Fredericton Tourism
Aventure Écotourisme Québec Cree Outfitting and Tourism Association Go Ski Alberta
Baccalieu Trail Tourism Association Crown of the Continent Golf PEI
Banff Lake Louise Tourism Deer Island Tourism Association Grand Manan Tourism
Battlefords Tourism Convention Association Destination Bluenose Coast Grande Prairie Regional Tourism Association
BC Commercial Snowmobile Operators Association Destination British Columbia Greater Toronto Hotel Association
BC Fishing Resorts and Outfitters Association Destination Cape Breton Island Guelph Tourism Services

23. Marketing, Advocacy Sector Organizations (H-T)
Hamilton Halton Brant Regional Tourism Association Mountain Bike Tourism Association Paddling Ontario – Canoe and Kayak Adventure Ontario
Harrington Harbour Tourism Association Muskoka Tourism Parksville Qualicum Beach Tourism
Heritage Run Tourism Association New Brunswick Bed and Breakfasts and Inns Association PEI Aboriginal Tourism Marketing Circle
Hike Ontario New Brunswick Outfitters Association PEI Gay Tourism Association
Hospitality Newfoundland and Labrador New Brunswick Tourism, Heritage and Culture Pilgrim Routes Travel Inc.
Hotel Association of Canada Newell Region Tourism Association Quebec City Motorized Recreational Sports Show
Hotel Association of Nova Scotia Newfoundland and Labrador Tourism Regional Tourism Organization 4
Hotel Association of P.E.I. Niagara Falls Tourism Regional Tourism Organization 7
Hotel Association of Vancouver Northern British Columbia Tourism Association Regional Tourism Organization 8
Hotel/Motel Association of Newfoundland Labrador Northwest Territories Tourism Resorts of Ontario
Interkake Tourism Association Nova Scotia Bed Breakfast Association Rocky Mountain House and Clearwater County
Iron Horse Trail Nova Scotia Tourism Agency Saskatchewan Hotel Hospitality Association
Kalyna Country Nunavut Tourism Saskatchewan Southwest Tourism Association
Kootenay Rockies Tourism Association NWT Campgrounds: Spectacular Parks Campgrounds Shuswap Tourism - Columbia Shuswap Regional District
Lac La Biche Region Ontario Accommodation Association Société des Attractions Touristiques du Québec
Lacombe Regional Tourism Ontario Culinary Tourism Alliance Sooke Region Tourism Association
Lakeland Tourism Association Ontario Cycling Association Southwest Ontario Tourism Corporation
Lanaudiere-Mauricie, Le Quebec authentique Ontario Federation of Anglers and Hunters Spectacular Northwest Territories
Lesser Slave Lake Regional Tourism Ontario Federation of Snowmobile Clubs St. Jacobs Country
Lloydminster Tourism Ontario Museums Association Sudbury Association of Bed and Breakfasts
Mackenzie Frontier Tourist Association Ontario Restaurant, Hotel Motel Association Sunshine Coast Canada, BC
Manitoba Hotel Association Ontario Tourism Marketing Partnership Tantramar Tourism Association
Manitoba Rural Tourism Association Ontario's Highlands The Cowboy Trail Tourism Association
Meetings Conventions Prince Edward Island Ottawa Tourism The Great Waterway (RTO 9)
Mighty Peace Country Ottawa Valley Tourist Association Thompson Okanagan Tourism

24. Marketing, Advocacy Sector Organizations (T-Z)
TIA PEI Tourism Saskatchewan Tourisme Laval
Tourism Association of Vancouver Island Tourism Saskatoon Tourisme Manicouagan
Tourism Atlantic Tourism Sun Peaks Tourisme Montréal
Tourism Burnaby Tourism Tofino Tourisme Outaouais
Tourism Calgary Tourism Toronto Tourisme Québec
Tourism Camrose Tourism Vancouver Tourisme Saguenay—Lac-Saint-Jean
Tourism Canmore Tourism Victoria Tourisme Mauricie
Tourism Industry Association of B.C. Tourism Westman Tourisme Montérégie
Tourism Industry Association of New Brunswick Tourism Whistler Tourisme Nunavik
Tourism Industry Association of Nova Scotia Tourism Winnipeg Travel Alberta
Tourism Industry Association of Ontario Tourisme Bas-Saint-Laurent Travel Drumheller
Tourism Industry Association of Vancouver Island Tourisme Centre-du-Québec Travel Manitoba
Tourism Industry Association of Yukon Tourisme Abitibi-Temiscamingue Travel Nordegg
Tourism Jasper Tourisme Autochtone Québec Twenty Valley Tourism Association
Tourism Kamloops Tourisme Baie-James Vancouver, Coast and Mountains Tourism Region
Tourism Kelowna Tourisme Cantons-de-l'Est Viking Trail Tourism Association
Tourism Kingston Tourisme Centre-du-Québec Visit Red Deer
Tourism Medicine Hat Tourisme Charlevoix Waskesiu Wilderness Region
Tourism Nanaimo Tourisme Chaudière-Appalaches Western Canada Mountain Bike Tourism Association
Tourism Northern Ontario Tourisme Duplessis Western NL Destination Management
Tourism Partnership of Niagara Tourisme Eastern Townships Wilderness Tourism Association
Tourism Prince Edward Island Tourisme Gaspésie Wilderness Tourism Association of Yukon
Tourism Prince George Tourisme Îles-de-la-Madeleine Yarmouth Acadian Shores
Tourism Regina Tourisme Lanaudière Yukon First Nation Tourism Association
Tourism Richmond Tourisme Laurentides Yukon First Nations Tourism Adventures

25. Leadership
How should the industry best align itself to approach the U.S. market?
233
228
43
76
43
A centralized approach led by a single
entity such as the CTC?
A decentralized approach with key
regional players (e.g., city or
province)?
A single or consortium of private sector
tourism entities?
A third-party hired through a
competitive process and dedicated to
this initiative?
Other
• Industry Survey in Spring 2014
• Focused on several issues
• Connect America/reaching the
U.S. market one question area
• Two polarized approaches to
undertake initiative
n = 623

26. Combined Marketing Spending (2013)
$622,048,175

27. $622,048,175 • Victoria
• Vancouver
• Whistler
• Banff/Lake
Louise
• Calgary
• Edmonton
• Winnipeg
• Toronto
• Ottawa
• Montreal
• Quebec City
• Mt. Tremblant
• Halifax
CTC
(11.5%)
Provincial Marketing Organizations
(60%)
Territorial Marketing
Organizations (1.5%)
13 Largest
Municipalities and
Resort Areas
(27%)
RTOs
Crown Corps
Operations
Ministry budgets

28. What’s Next?

29. The 5% Plan
Exceed the UNWTO forecasted growth
rate for developed economies
Return to 2002 visitation levels by 2017
Generate cumulative incremental
spending of $5 billion by 2020
Create $1.7 billion in incremental tax
revenue to all levels of government
CANADA 1.5%
U.S. 4.6%
+5% WORLD

30. What’s the Game Plan?
Connecting America CTC-led campaign to reconnect with
the US travel consumer, leading up to Canada’s 150th in
2017.
$35M federal co-investment per year for 3 years
Co-investment 1:1 – forging alignment
Significant opportunities exist:
• Ample air access
• US economy recovering
• 100M US passport holders
• Electronic Travel Authorization (ETA)
Prime customer base

31. The 5% Plan—Impact on All Sectors
International visitation of 22.3 million
Spending by international visitors of $17.2 billion
(constant 2014$)

32. The 5% Plan—Impact on All Sectors

33. Specialized services for the Canadian and
international hospitality, leisure and tourism industry.
Lyle Hall Rob Scarpelli
Ken Lambert Katia Muro
Carla Giancola Drew Chamberlain
Matthew Klas
lylehall@hlta.ca
www.hlta.ca
370 King Street West, Toronto, Ontario
(416) 924-7737

34. Questions???