Realizing Canada’s International Tourism Potential

Realizing Canada’s

International Tourism

Potential Greg Klassen

SVP Marketing

Canadian Tourism Commission

November 20, 2012

How are you doing?

crossroads

ch

an

ge

ch

oic

e uncertainty transition

hu

b

continue alter course

impasse

inte

rsect

Tourism 2012: what is it?

RELIANCE ON DOMESTIC TRAVELLERS

Domestic market…

big growth

US market…

hit bottom

Travel deficit…

ballooned

$36.2b

$10.4b

$2.1B

$63.7b

$7.2b

$16.3b

2001 2011

Overseas market…

flat $7.5b $8.0b

*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).

=

=

$300

$1,459

Spend per trip**

Domestic revenue accounts for

81% of tourism revenue

…AND DOMESTIC

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

Growth in outbound tourism

spending since 2009

BRAND USA BRAZIL AUSTRALIA

BRITAIN

COMPETITION

IS FIERCE

opportunity

luc

k

ch

an

ce hard work learning

risk

reward

gro

wth

evolution

op

en

ing

progress

knocks

Rank 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

FUTUREBRAND COUNTRY BRAND INDEX

2012-2013

“A strong country reputation builds stakeholder support, making

Canada a country people will recommend as a place to visit, invest

in, live in and work in.”

– Nicolas Trad, Managing Partner, Reputation Institute

MOST RECOMMENDED

DESTINATION TO VISIT

WHICH COUNTRIES ARE THE MOST ATTRACTIVE

FOR KEY SUPPORTIVE BEHAVIORS?

Visit

Canada

Australia

New Zealand

82.42

82.29

79.88

“… is a country I would recommend visiting”

Invest

Switzerland

Canada

Sweden

70.08

67.40

66.16

“… is a country I would recommend investing in”

Live

Canada

Australia

Switzerland

74.81

73.14

70.97

“… 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

Switzerland

Canada

Sweden

72.22

72.11

71.17

“… is a country I would recommend buying

products & services from”

Work

Canada

Australia

Switzerland

73.66

71.54

71.49

“… is a country I would recommend working in”

Study

Canada

U.K.

Australia

74.16

71.67

71.62

“… is a country I would recommend studying in”

© 2012 Reputation Institute, all rights reserved.

Canada’s Federal

Tourism Strategy

Canada’s Global

Commerce

Strategy

http://www.international.gc.ca/commerce/assets/pdfs/GCS-en.pdf

Tourism 2020:

what could be?

“If we can’t export the scenery, we’ll import the tourists.”

UNWTO 1950 Global Ranking

1 US

97%

2 Canada

3 Italy

4 France

5 Switzerland

6 Ireland

7 Austria

8 Spain

9 Germany

10 UK

11 Norway

12 Argentina

13 Mexico

14 Netherlands

15 Denmark

Other 3%

Total 25 million


1 Italy

75%

2 Canada

3 France

4 Spain

5 US

6 Austria

7 Germany

8 Switzerland

9 Yugoslavia

10 UK

11 Hungary

12 Czech

13 Belgium

14 Bulgaria

15 Romania

Other 25%

Total 166 million


1 France

67%

2 US

3 Spain

4 Italy

5 Hungary

6 Austria

7 UK

8 Mexico

9 Germany

10 Canada

11 Switzerland

12 Greece

13 Portugal

14 Malaysia

15 Croatia

Other 33%

Total 703 million


1 France

56%

2 US

3 China

4 Spain

5 Italy

6 Turkey

7 UK

8 Germany

9 Malaysia

10 Mexico

11 Austria

12 Russia

13 Hong Kong

14 Ukraine

15 Thailand

Other 44%

Total 983 million

Canada 2011-

18th place

What we’ve learned

CANADA’S INTERNATIONAL

TOURISM BRAND

Target the right customers

FREE SPIRITS

CULTURAL EXPLORERS

AUTHENTIC EXPERIENCERS

NO-HASSLE TRAVELLERS

GENTLE EXPLORERS

REJUVENATORS

market share, revenue

potential

age, gender, income

travel motivators – trip type,

accommodation, food,

activities

preferred media sources for

inspiration, planning,

advocacy

what sorts of Canadian

tourism experiences appeal to

them

marketing considerations –

messaging, voice, personality

SOCIAL MEDIA

Platforms for real

travellers to provide us

that powerful ‘advocacy’

Bringing Canada’s

Unique Selling

Propositions to life through the

Signature

Experiences

Collection

IN 2011 THE CTC…

For every $1 dollar invested in advertising, $37flowed into

the country’s tourism sector

Generating $15b in export revenue

and $180 million in

government tax

revenues

CTC with partner’s efforts

generated an estimated

$590 million in

tourism revenue for Canada’s

economy

created or

protected

4,781

tourism jobs

across the

country

conundrum

perp

lexin

g

ch

allen

ge puzzle paradox

confusion

rid

dle

stumped

so

lve

unexplained

conjecture

en

igm

a

FutureBrand

Country Brand

Index 2012-2013 TOURISM

HERITAGE & CULTURE

CBI DIMENSIONS

Canada climbed 7 places in tourism dimension

Canada climbed 15 places in heritage & culture

Canada improved its rank significantly among key

attributes for TOURISM

2012 KEY TOURISM ATTRIBUTES

VALUE FOR MONEY

4th

↑ from 17th in 2011

ATTRACTIONS

6th


NIGHTLIFE

12th


RESORT & LODGING OPTIONS

10th


SHOPPING

12th


FOOD

11th


Canada improved its rank significantly among key

attributes for HERITAGE & CULTURE

2012 KEY HERITAGE & CULTURE ATTRIBUTES

ART & CULTURE

15th


AUTHENTICITY

12th


NATURAL BEAUTY

6th


to

CONVERSION

from

AWARENESS

Only

20% of Canada’s customers

make it to the point of

imaging themselves in

Canada.

Brand USA

USA TOURISM SUCCESS STORY

OVERNIGHT TRIPS US VS. CANADA

Arrivals

10:1 US : CA

Source: Statistics Canada, ITS, OTTI

CANADA’S TOURISM EXPORT

REVENUE IS ONE TENTH OF THE US

U.S. $153 B

Canada $ 15 B

EX

PO

RT

RE

VE

NU

E

Source: Statistics Canada, NTI, OTTI

AIR SEAT CAPACITY

Overseas seat capacity: Canada vs. US Millions of seats, 2000 – 2012 (source: Diio Mi)

US Canada

74.4 81.2

7.0 11.1

2000

2012

US TOP OF MIND

How will we compete with Brand USA?

Brand USA

LEVERAGE OUR COMPETITOR’S MARKET

MUSCLE

Leverage Brand USA strengths

Active

consideration

Massive

visitation

and repeat

Marketing

spend

$200M

Air access Proximity

to Canada

#1

destination

for all our

EQ

segments

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

Canada US

confidence

co

nvic

tio

n

iden

tity

trust reputation

courage belief

pride

hu

bri

s

self-esteem

assu

red

en

erg

y

eg

o

composure

66% Fall off

Channel strategy

49

We have big consideration hurdles.

Source: P2P Research

Barriers: Distance. Cost. Understanding

Channel strategy

50

Aggressively intercept at point of purchase.

+Canada

+Canada Pilot… …in reaction to Brand USA, promoting the dual-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

Life Sciences

Information/Communication Technology

2 Key Priorities

Agriculture & Food

Natural Resources

Business

Events

Canada

SET YOUR ALARM

TOURISM 2020

Nov 20, 2020?

What will tourism for

Canada look like?

Realizing Canada’s International Tourism Potential

Travel

Transcript of Realizing Canada’s International Tourism Potential