Market UpdatesBrazil, Mexico, India, Japan, S.Korea Siobhan Chretien, Regional Managing Director

UPDATE ON BRAZIL Sheila Nassar, Account Director - Brazil GSA

Steady Growth & High Spend

TRAVELLER CHARACTERISTICS

CHALLENGES

Low destination awareness Lack of seasonal and direct air capacity Visa Process Fierce competition Total outbound travel growing faster than

Canada’s share

MARKET OPPORTUNITIES

Travel Trade keen to sell Canada Strong brand perceptions and travel intentions Increased air access all year Online visa process Strong media exposure Dynamic growth in social media use #1 for students

TOP PRIORITIES 20131. Key Account Marketing

2. Signature Experiences Collection promotion

3. Trade and media integration

4. Consumer campaigns with media diversification

5. Canada Specialist Program

6. Student Market

7. B2B marketplaces

2013 MULTI-CHANNEL APPROACH

Trad

e Coop MarketingTraining nationwideCSP developmentFAM TripsTrade fairsPOS materialNew product development (SEC)Showcase Brazil

Med

ia Fam Trips lifestyle Fam trips trade mediaReleases all yearPitch stories

Cons

umer Social Media channels

Consumer marketing campaign on print, digital mediaNew website

WHO IS ATTENDING RENDEZ-VOUS?

Brazilian Tour Operators Association

members (Braztoa)

Non-Braztoa members

Trade Media

THINGS TO KEEP IN MIND ABOUT BUYERS

Time-stressed

Responsible for more than 5 countries

Need certainty and flexibility

Clear and direct communication a must

BUSINESS TIPS

Keep your Receptive in the loop

Provide relevant sales benefits

Show your strengths compared to Canada’s

international competitors

Show how selling your experience will make their

business more profitable

Make it Win-Win

BUILD THE RELATIONSHIP

Start with key accounts that fit your business

Focus on good communication

Provide relevant information in Portuguese

Approach RTOs with special deals for your key

accounts

Stay committed

Thank you!

Merci beaucoup!

Obrigado!

UPDATE ON MEXICOJorge Morfin, Managing Director - Mexico

THE STORY OF A RESILIENT MARKET

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

140 148 161132

169 179202

230257

161

116 125142

160/e

Total Overnight (,000s)

Overnight revenue from the Mexican market was up nearly 13% in 2011 to $177.3 million

Average spend per person: $1,424

MARKET OPPORTUNITIES Build confidence in travel agencies to support sales

Continue developing joint strategies between the provinces and the CTC to keep our leading position on the market

Support wholesalers and airlines’ activities

Become more creative in positioning the destination among potential travelers

MARKET OPPORTUNITIES

Continue working with the Canadian Embassy to facilitate the acquisition of visas

Reinforce strategies in social networks that will contribute to a positive communication of the destination

Maintain the privileged position among the media

TOP TEN PRIORITIES

Partnerable consumer campaigns

Industry and corporate

communications plan

Young Adult/Student development

Airline and Tour Operators Co-ops

Canadian Signature Experiences B2B Marketplaces Canada Specialist

Program Canada Receptives

and Tour Operators

Celebrity/Influencer and broadcast MR Embassy relations

HOW TO DO BUSINESS IN MEXICO

SEC

Consumer

RTO

Wholesaler Consumer

Retailer Consumer

OTA Consumer

HOW TO DO BUSINESS DURING RVC Start building relations with RTOs Understand your business case Local operators place high value on

personal relations Materials translated in Spanish are preferred

UPDATE ON INDIATina Singh, Account Director – India GSA

FIRST THINGS FIRST

Canada enjoyed a record

132,000 overnight Indian arrivals in 2011

CTC has forecast arrivals growth of 5% in

2012 and 2013

2011 revenue: $139 Million (10% growth)

SOME FACTS

Source: India Market Profile, CTC. 2013

WHEN DO THEY VISIT?

THE INDIAN TRAVELLER TO CANADA

Educated Affluent with desire to travel Age: 35-55+ Seasoned travellers English speaking Want extraordinary experiences Experiential & soft adventure products are appealing Love to shop

THE INDIAN MARKET Ranked in top five for % growth potential for outbound travel

(10-15%)

Growing and affluent middle class has a desire to travel, especially to new destinations like Canada

Average stay per trip: 23 nights

Experienced, sophisticated travellers with history of long-haul travel

UNWTO: estimates 50 million outbound tourists by 2020

THE INDIAN MARKET

A high-end niche market seeking luxury travel (up to 3 weeks) . A popular itinerary: cruising plus Rockies using Fairmont Hotels.

Metropolitans: Mumbai & Delhi have been main traffic producers but much growth is seen from Tier II cities and CTC is expanding its sales network to reach them

BUSINESS THROUGH TRADE

It is important for

Receptives to be in touch

with Indian travel partners

Why? 80% of the Indian market

purchase tickets for international

travel through a Travel Agent

DRIVERS OF DESTINATION CHOICE

Weather Advocacy / Word of Mouth Experience / New product Opulence: Luxury / Lifestyle Shopping Visiting Friends & Relatives Scenic Beauty Entertainment / Children friendly (Family destination)

A GLIMPSE OF 2012

MARKET BARRIERS Competition / Big Spends Long-haul destination Air Access / Rising airfares Strict Visa Perception Brand USA Rising Dollar Prices (25%)

WHY INVEST IN THE INDIA MARKET

Continued annual growth driving the economy Growing middle-class Potential long-haul outbound travel robust High-end niche market seeking luxury travel Canada arrivals growing FIT / GIT strong Strong VFR Deep trade ties

1. Develop and increase number of key accounts

2. Launch SEC: Oct 2013

3. Deliver trade education and marketplaces in Tier I & II cities

4. Develop co-op programs with tour operators and Canada

Specialist training with top-performing agents

5. Expand Visa Preferred Agent Program

MOVING FORWARD: 2013 PRIORITIES

MOVING FORWARD: 2013 PRIORITIES

6. Further develop media relations to include a

stronger tour operator call to action

7. Road shows / B2B marketplaces

8. Leverage dual nation (US) itineraries to overcome

direct air access barrier in the short-term

HOW TO DO BUSINESS WITH IN BUYERS AT RVC Build relations with trade partners Ask about their issues and hear them out Massage their ego’s, Indians love it! Go the “extra-mile” Business could change hands for $5 per

head

BEYOND RVC Stay committed and be flexible

Maintain a consistent presence

Prepare a range of itineraries

Merci, Thank you.

Update on JapanMaureen Riley, Managing Director - Japan

JAPAN BY THE NUMBERS

2005 2006 2007 2008 2009 2010 2011 20120

100,000

200,000

300,000

400,000

500,000

Lehman Shock

3/11

ARRIVALS IN COMPETITOR DESTINATIONS 2006-2011

MARKET OPPORTUNITIESTour operator partnerships / Team Canada Increased interest in FIT options Increased travel with younger demographic Air accessStrong Media Exposure Creative in positioning of CanadaDynamic growth in social media use

INTEGRATED MARKETING ACTIVITIES

Trade

MediaTrade

Campaign

• Multi-tiered, fully integrated media visits

• Social Media

• Co-op marketing • Trade Campaigns• New product and market

development• Enhanced airline partnerships• Tour operator education

• Multi-tiered, fully integrated trade campaign

MAXIMIZING RVC ROI

Focus on:

What does this buyer need? How can I fulfill that need? What makes me unique? Who is this buyer’s RTO? Follow up!!!

Thank you!

Merci beaucoup!

ありがとうございました !

SOUTH KOREA UPDATE Don Byun, Managing Director - S. Korea

VALUE AND POTENTIAL OF THE MARKET

Strong outbound travel market in Korea

2007 2011 2012

Outlook of Koreans to Canada

• Strong leisure driven market• Average spend per person per trip is

$1,593 (ranks 3rd after Australia and Brazil among CTC’s Int’l Markets)

• 1.2 M Korean travelers seriously consider holidays in Canada in next 2 years

Source : CTC’s Annual Report 2011 & GTW 2012

13.3M

13.7MNew Record

VISITORS TO CANADA FROM KOREA

2004 2005 2006 2007 2008 2009 2010 2011 2012 -

50,000

100,000

150,000

200,000

250,000

ARRIVALS IN COMPETITOR DESTINATIONSEurope: Not available

USA Australia Canada New Zealand -

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2006200720082009201020112012

US VISA WaiverNOV 2008

KEY TRENDS FOR OUTBOUND TRAVEL IN 2013

• Outbound volume continues to grow but mainly to short-hauls with LCC • Huge growth of Low Cost Carriers going overseas (95.6% increase over 2011) • Continuing growth of Foreign Independent Travellers with increasing number of

experienced travellers and less language barriers• Online travel agents where travellers can individually arrange flight, hotel,

transportation and attractions are booming • Fierce competition among destinations• Influencers : TV, Internet & blog(words of mouth), Product Placement and trendy

travel/life guidebooks

TOP 3 TIPS TO BOOST BUSINESS

• Koreans value personal relationships - Persistent visits help• Best Timing for Sales call - Spring(March-April) or Fall(October-

November)Relationship

• Learn local business practice• Be flexible with market• Korean translator will bring more effective communication

Understand

• No invest, no earn: No the attitude to see the results first• At least prepare ‘product information, promotional idea, special

discounted rates’ for the business meetings• Develop Korean marketing materials

Invest

INTEGRATED MARKETING ACTIVITIES

Trip to CanadaWinter

FallSummerSpring

Trade

MediaSocial Media

Consumer• Korean information

(website, brochures)• Online Campaign• Travel Exhibition• E-newsletter

• Star Blogger Program• Facebook(43K fans)• Twitter• Youtube

• Canada Specialist Program• Trade Co-op promotion• Airline Campaign• Market Place• Sales Call

• Media Visits (TV & Print)• Media Co-op Promotion• Celebrity Program• Media events• Press Release

INTEGRATED MARKETING ACTIVITIES

CANADAOnline

campaignBloggers

FacebookPR Activity

SHOW TIME: 3 MIN VIDEO

Sample of CTC Korea’s integrated

market approach