CANADIAN TOURISM COMMISSIONANNUAL PUBLIC MEETINGLOCAL OPPORTUNITIES, GLOBAL MARKETSGreg KlassenSenior Vice President, Marketing Strategy & Communications

HAMILTONHOUSTON, WE HAVE A PROBLEM1.BARRIERS TO TRAVEL TO CANADA

2.SHIFTING CONSUMER TASTES/DESTINATIONS;

3.CHANGING COMMUNICATION AND MEDIA LANDSCAPES

1. AIR, VISAS, BORDERS, PASSPORTS, EXCHANGE RATES;

2.SHIFTING CONSUMER AND DESTINATION TASTE

15.9M -8.1%

940M+110.7%

Source: UNWTO

SHIFTING CONSUMER AND DESTINATION TASTES

12.0 M +25.3%

946.5M+55.4%

Source: UNWTO

A BETTER REVENUE PICTURE

-8.1%

+150%

Mature markets: Composite of UK, France, Germany, Switzerland, AustraliaNew/Emerging markets: Composite of China, Thailand, Vietnam, Turkey

FIERCE COMPETITORS – NEW/EMERGING DESTINATIONS

Source: Statistics Canada

Asian Crisis 911

SARS

GlobalRecession

FOLLOWING SARS - REVERSED GROWTH TRENDS

50

100

150

96 97 98 99 0 1 2 3 4 5 6 7 8 9 10

Core Market Arrivals to CanadaEmerging Market Arrivals to Canada

New/Emerging Markets for Canada

Source : Statistique Canada

Asian Crisis

Sept.11

SARSGlobal Recession

Rank 1990 World Share 

2010 World Share 

1 France France2 USA USA3 Spain   China4 Italy Spain5 Hungary Italy6 Austria UK 7 UK Turkey8 Mexico        67% Germany        55%9 Germany Malaysia10 Canada Mexico11 Switzerland Austria12 Greece Ukraine13 Portugal Russia14 Malaysia Hong Kong15 Croatia CanadaOther 33% 45%Total 703 million 940 million

Source: UNWTO

COUNTRY RANKING - GLOBAL TOURIST ARRIVALS

Global Ranking – Long-Haul Tourist Arrivals

Rank 1999 2009 1 US US 2 UK France 3 France China 4 Canada UK 5 China Italy 6 Germany Canada 7 Italy Germany 8 Spain Turkey 9 Hong Kong Malaysia 10 Mexico Hong Kong

Source: UNWTO

COUNTRY RANKING - LONG-HAUL GLOBAL TOURIST ARRIVALS

HAMILTONHOUSTON, WE HAVE AN OPPORTUNITY

8

Ranking Most Reputable Countries in the World

Country RepTrak™ 2011 External G8 Scores

9

visit work live

Which countries are most attractive for key supportive behaviors?

10

CANADA’S CHALLENGE: TO LEVERAGE OUR COMPETITIVE ADVANTAGE THROUGH MARKETING EFFECTIVENESS

3. CHANGING COMMUNICATIONS AND MEDIA LANDSCAPES

SO ARE “WE” SPENDING OUR MONEY IN ALL THE RIGHT PLACES……

TO NOT ONLY COMPEL AND INSPIRE OUR CUSTOMERS TO CANADA, BUT TO CLOSE THE SALE AND TURN THE DREAMERS INTO DO-ERS?

OF THE DECISION TO VISIT CANADA IS DRIVEN BY THE TOURISM BRAND

*Interbrand

TRAVELLERS AROUND THE WORLD ARE

TELLING US THAT THEY WANT TO

EXPLORE AND LIVE A LIFE THAT’S LESS

ORDINARY.

WE’RE PROMISING THAT CANADA IS THE PLACE WHERE THEY CAN FULFILL THIS DREAM & CREATE STORIES ALL THEIR OWN.

CANADA. KEEP EXPLORING IS A STORYTELLING BRAND THAT DELIVERS ON THIS PROMISE. IT’S BUILT AROUND CANADA’S…

GEOGRAPHY PEOPLE CULTURE

35%

24%

17%

7%

4%

2%

2%

1%

1%

6%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Free Spirits

Cultural Exlporers

Authentic Experiencers

Group Tourists

Rejuvenators

Gentle Explorers

No-Hassle Travellers

Cultural History Buffs

Personal History Explorers

Virtual Travellers

WITH EQ AT THE HEART OF THE BRAND PROVIDING INSIGHTS ON WHO OUR BEST PROSPECTIVE CUSTOMERS ARE…

…AND HOW THEY LIKE TO TRAVEL

Social ValuesIndex Score Social Values

Index Score

Joy of Consumption  273 Selective Use of Professional Services  164

Social Mobility 262 Time Stress  163

Importance of Brand 260 Adaptability to Complexity 162

Attraction for Crowds 258 Introspection & Empathy 153

Penchant for Risk 249 Confidence in Advertising  147

Fashion & Trends 213 Culture Sampling 147

Importance of Aesthetics  212 Importance of Spontaneity  144

Pursuit of Novelty  198 Multiculturalism 139

Happiness  195 Need for Uniqueness  133

Need for Status Recognition  189 Discriminating Consumerism  126

Enthusiasm for New Technology 188 Largesse Oblige  125

Social Intimacy 184 Upscale Consumerism  125

Concern for Appearance  177 Effort toward Health  119

Networking  176 Spiritual Quest  117

Personal Escape 171 Discount Consumerism  64

Vitality  164

FREE SPIRITS

OF THE DECISION TO VISIT CANADA IS DRIVEN BY THE TOURISM BRAND

*Interbrand

WHAT ABOUT THE OTHER

STEP 1

STEP 2

STEP 3

STEP 4

STEP 5

STEP 6

STEP 7

ON CONSIDERATION LIST

CREATING A MOVIE

ITINERARY PLANNING

TRAVEL ARRANGEMENTS

BOOKED A TRIP

ON DREAM LIST

AWARENESS

SERIOUSLY CONSIDERING IN NEXT 2 YRS

SERIOUS INVESTIGATION

PLANNING DETAILS OF ITINERARY

FLIGHT AND LAND ARRANGEMENTS

PROSPECT HAS BOOKED

INTEREST IN GOING SOMETIME IN FUTURE

FIRST HEAR ABOUT DESTINATION

PATH TO PURCHASE

UK’S TRAVELLER’S PATH TO PURCHASE

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7

2009

2008 100%

100% 82.6%

96.1%

42.6%

44.4% 16.4%

19.5% 6.1%

3.7% 1.4%

2.0% 1.0%

0.8%

Market Potential 22.5M 18.6M 9.6M 4.4M 1.4M 450K 225K

Global 2009 100% 83.1% 49.5% 23.7% 8.0% 2.1% 0.7%

Step 3

Step 4

Step 5

Step 6

Step 7

On Consideration List

Creating a Movie

Itinerary Planning

Travel Arrangements

Booked a Trip

On Dream List

Awareness 17%

33%

26%

15%

6%

2%

1%

CTC

Regions/Provinces

Local governments & Suppliers & package tour

providers

Suppliers & Trade

Step 2

Step 1

KEY RESPONSIBILITIES ALONG THE PATH

NEED FOR A HIGH DEGREE OF COLLABORATION ALONG THE PATH

Path to Purchase 2009

100%

83%

44%

1%2%5%20%

Step 1:Aware

Step 2:Dream

Step 3:Consider

Step 4:Movie

Step 5:Itinerary

Step 6:Arrange

Step 7:Purchase

Long

Hau

l Ple

asur

e Tr

avel

lers

(%)

Core Mkts

WE NEED TO INSPIRE TRAVELLERS TO CONSIDER CANADA AND CREATE A VACATION MOVIE

Aware of the brandAware of the brand

On dream listOn dream list

On serious consideration

list

On serious consideration

list

Creating a movie

Creating a movie

Itinerary PlanningItinerary Planning

Arrangeme

nts

Arrangeme

nts

BookedBooked

CONSIDERATION

EXPERIENCE/ADVOCACY

EVALUATION

PURCHASE

COMMUNICATIONS

TRADITIONAL FUNNEL DIAGRAM

REDISTRIBUTING OUR EFFORTS

Evaluation

Experience/

Advocacy

Consideration

Purchase

CHARACTERIZED BY 4 KEY STAGES

TO CONVERSION

FROM AWARENESS

WE NEED TO MOVE TRAVELLERS

1.Vibrant cities on the edge of nature

2.Personal journeys by land, water and air

3.Active adventure among awe-inspiring natural wonders

4.Award-winning Canadian local cuisine

5.Connecting with Canadians

OUR USPs:

STRENGTHEN PERCEIVED WEAKNESSES IN AREAS OF HIGH IMPORTANCE TO TARGET CUSTOMERS (CUISINE, URBAN, CULTURE)

The Signature Experiences Collection will help us deliver that powerful, consistent marketing message

WE HAVE AN OPPORTUNITY TO DELIVER A POWERFUL MESSAGE BY LEVERAGING INFLUENCERS HAVING PROFOUND CANADIAN EXPERIENCES TO FUTURE CUSTOMERS.

IN THE PAST WE’VE DELIVERED THE CANADA MESSAGE THROUGH SOME VERY POWERFUL INFLUENCERS

COOL, BUT

WE ARE MISSING OUT ON REGULAR TRAVELLERS TO CANADA WHO COULD BE EVEN BETTER INFLUENCERS FOR FUTURE TRAVELLERS

PARTICULARLY, WHEN WE DO OFFER THEM SUPERB EXPERIENCES!

NOT BECAUSE THEY ARE PASSIONATE ABOUT A BRAND, RATHER MORE INTERESTED IN PROJECTING THEIR LIVES THROUGH BRAND ASSOCIATION

KEY COMPONENTS FOR SUCCESSFUL ADVOCACY : RIGHT PERSON (FREE SPIRITS): RIGHT CATEGORY (TRAVEL): RIGHT EXPERIENCE (CANADA):

WHY DO PEOPLE ADVOCATE?

CANADA.KEEP EXPLORING BRAND ALIGNED WITH VALUES HELD BY OUR CUSTOMERS

TOP 5 MOST RECOMMENDED DESTINATIONS—FUTURE BRAND WITH 95% ADVOCACY RATE

81% OF PAST VISITORS RECOMMEND CANADA WITH 67% OF THOSE INFLUENCING OTHERS TO POSITIVE EFFECT

WHY IS THIS GOOD FOR CANADA?

WHICH COUNTRY WOULD YOU RECOMMEND TO VISIT THE MOST?

REPUTATION INSTITUTE COUNTRYREPSM RANKING 2010

DIGITAL ARE THE NEW POST CARDS AND I-PADS THE NEW TOOLS

FACEBOOK IS THE “MEDIA” FOR NETWORKING

TRIPADVISOR IS THE NETWORK FOR SHARING TRAVEL STORIES

50

ECLAL THE NEW CTC TOOL TO COMPEL AND INSPIRE SHARING OF “LOCAL” EXPERIENCES IN CANADA

ADVOCACY

Share on site

ECLAL LAUNCH ARCHITECTURE

*Interbrand53

2b - ELAL video.mov

Evaluation

Experience/Advocacy

Consideration

Purchase

CHARACTERIZED BY 4 KEY STAGES

The Signature Experiences Collection will help us deliver that powerful, consistent marketing message

WE HAVE AN OPPORTUNITY TO DELIVER A POWERFUL MESSAGE BY POSITIONING THE RIGHT EXPERIENCES IN FRONT OF THE RIGHT CUSTOMERS.

A COMMONLY USED INVENTORY OF BRAND-ALIGNED EXPERIENCES THAT CONVEY THE BRAND PROMISE AT ALL TOUCH POINTS.

SIGNATURE EXPERIENCES COLLECTION

SIGNATURE EXPERIENCES COLLECTION MEMBERS:

SELL A CANADIAN BASED ‘EXPERIENCE’

MATCH ONE OR MORE OF CANADA’S ‘UNIQUE SELLING PROPOSITIONS’

PRACTICE A HIGH STANDARD OF MARKETING (DELIVER QUALITY EXPERIENCE, MARKET THEMSELVES PROFESSIONALLY)

DO BUSINESS INTERNATIONALLY (EXPORT READY)

SIGNATURE EXPERIENCES COLLECTION

INDUSTRY MORE INTERNATIONAL DEMAND FOR CANADIAN

EXPERIENCES IMPROVED CUSTOMER EXPERIENCE

EXPERIENCE SUPPLIER BETTER ODDS THAT THEIR EXPERIENCE WILL

BE MARKETED INTERNATIONALLY ENHANCED BUSINESS REPUTATION AMONG

INDUSTRY PEERS

SIGNATURE EXPERIENCES COLLECTION

TRADE HEIGHTENED AWARENESS OF CANADA’S

DIFFERENTIATING EXPERIENCES SUPPLY EASILY ACCESSIBLE CONTENT FOR

TRADE CHANNEL TO USE IN BROCHURES, CAMPAIGNS, ETC.

CTC BETTER LEAD INDUSTRY IN BRAND

ENHANCEMENT AND ALIGNMENT OPERATIONAL EFFICIENCIES COORDINATED APPROACH

SIGNATURE EXPERIENCES COLLECTION

HOW’S IT GOING?

48NUMBER OF EXPERIENCES ALREADY IN THE PROGRAM

MEDIA RELATIONS ACTIVITIES RESULTED IN SIGNIFICANT AMOUNTS OF POSITIVE PRINT, BROADCAST AND HEAVY ONLINE NEWS COVERAGE.

158APPLICATIONS UNDER REVIEW

SEC APPLICATION PROCESS

NOVEMBER 15, 2011WINTER APPLICATION INTAKE

A VERY ENGAGED SHAREHOLDER

TOURISM SUPPLIERS: EXCITEMENT AND SUPPORT

PMO/DMO ENGAGEMENT

RECEPTIVE & KEY ACCOUNT ACTIVATION

CTC INTEGRATION OF SEC ACROSS ALL PROGRAMS

KEEPING THE MOMENTUM GOING

THE VISION

Vision A fully integrated program that fully leverages brand-aligned tourism businesses in the CTC’s priority international markets

Inspiring international

travellers to choose Canada

SEC members

CTC In-market salesCTC GloMar/GloCom

Be one of the most innovative NTOs

THE SEC ECOSYSTEM – TIED TO THE CORPORATE PLAN

SEC members

In-market salesGloMar/GloCom

CONTENT

TOOLS

MARKET ACCESS

PROGRAM REPUTATION

GOAL

AN SEC PROGRAM ECOSYSTEM THAT IS SUPPORTED WITH CONTENT, TOOLS AND ACCESS TO INTERNATIONAL MARKETS IN A WAY THAT DRIVES THE PROGRAM’S REPUTATION & VALUE THROUGHOUT INDUSTRY.

Integration Process

(ecosystem development)

In-market impacts

Program evaluation & improvement

PROGRAMDEVELOPMENT

& IMPLEMENTATI

ON

2010 2011-2012 2013-2014

TIMING

THANK YOU

WWW.CANADA.TRAVEL