Trends & opportunities

for the Canadian Tourism Industry Presented by Paul Nursey, VP Strategy and Corporate Communications

April 22, 2013

Factors for consideration: PESTEL

Social

Legislative

Economic

Technological

Environmental

Political

TripAdvisor Reaches 100m Reviews/Opinions

Elections in Germany: September

20

13

Tim

elin

e

Elections in Italy: Feb. 24-25/Xi Jinping Mar 14

Elections in Israel: Jan. 22

Elections in Iran: June 14

Inauguration of Barack Obama: 21 January

The 2013 FIFA Confederations Cup will be held in Brazil June 15 – 30

Report from UN International Panel on Climate Change: Fall

Jan

Feb

Mar

Apr

May

June

July

Aug

Sep

Oct

Nov

Dec

State of play – the new norm

• Energy cost leveling

• Fiscal cliff avoided

• Loonie to remain strong, but stable

• Slow European recovery amid uncertainty

• China to lead economy, but at a reduced pace

-0.2% 2013 GDP

• DE: GDP slowing to 0.8% due to uncertain export outlook • FR: Resilient economy, GDP edging up to 0.2% • UK: Slow recovery , no fiscal stimulus, but GDP to improve to 1%

EUROZONE STRUGGLES TO REGAIN GROWTH

GDP growth

• 2012 7.6%

• 2013: 8.1%

• 2014: 9.0%

CHINA LEADS SLOWER PACE

2013 Forecasts Volumes - 2013/2012% Receipts- 2013/2012%

US Leisure +1.0 +5.8

US MC & IT +5.1 +0.1

Total US Travel +1.6 +4.4

United Kingdom +0.3 +0.7

France +1.3 +1.5

Germany +2.2 +4.2

Australia +4.5 +6.3

Japan +2.8 +7.3

South Korea -1.5 -2.0

China +20.4 +15.2

India +5.1 +8.1

Brazil +6.2 +2.1

Mexico +6.1 +9.1

Total Target Markets +2.1 +3.1

Source: CTC forecasts, December 2012

Big ticket travel items

0

0.25

0.5

0.75

1

1.25

1.5

1.75

2

1980 1990 1995 2000 2005 2010 2020 2030

Tho

usa

nd

s

Europe Asia and the Pacific Americas Africa Middle East

Arrivals to reach 1.8B by 2030 World International Tourist Arrivals, billions

1.8

Bill

ion

Big ticket travel items

Trade and tourism - it’s usually increased tourism between

countries that causes more trade; not the other way around.

Nation Brand

Tourism

Exports

Governance

Investment and

Immigration

Culture and Heritage

People

Dreaming, Planning & Booking

Who to watch:

Emerging Markets: BRICS Mature Markets:

Shifting demographics, rapid urbanization & a growing middle class population

Aging population results in 2 –tier baby boomers

Dreaming, Planning & Booking

Who to pursue:

"Boomers should be

called "Zoomers.“ LeRoy Hanneman, president and CEO of Del Web

Projected Acceleration of Population Aging

Source: United Nations, 2009

Dreaming, Planning & Booking

Who to pursue: Millennials

Global youth (Age 18-29),

by the numbers

• 187 million travellers

worldwide

• 20% of all annual global

arrivals

• Tourism’s fastest-growing

segment at 3-5% increase

per year

Dreaming, Planning & Booking

Who to pursue:

Business Leisure Blur: • The 2012 study “U.S. Business Traveler:

Managed, Unmanaged and Rogue”, states 47% of business travellers add leisure extensions to at least one of their trips every year.

• 25% of global business travellers always include

some personal time when in their business travel itineraries. (Wyndham Hotel Group)

How to connect:

Connectivity

Dreaming, Planning & Booking

Source: The New Multi-screen World, Ipsos and Sterling Brands, August 2012.

How to connect:

Transparency

Dreaming, Planning & Booking

• New Media sees the biggest rise in trust, jumping 75%

Source: Eldelman trustbarometer, 2012.

How to connect:

Big data

Dreaming, Planning & Booking

72 hours of video are added to YouTube every minute

Google records 2 million searches & something is bought on eBay via a mobile device every second

Today’s smartphone would have been the most powerful computer in the world in 1985

In the U.S. alone, 120 million people now own smartphones, up 30 million in just the past year

For $600 you can buy a disk that can store all of the world’s music

120 billion pieces of data are added to Facebook every month

92% of the world’s data was created in just the past two years

By the end of 2012, comScore was capturing 1.4 trillion digital interactions per month

Dreaming, Planning & Booking

How to connect:

Travel agents – service specialization & technology

A recent Thomas Cook study revealed that while electronic devices might be popular for researching trips, 46% of its customers still preferred to book holidays face-to-face.

Dreaming, Planning & Booking

How to connect:

Dreamliner Airbus 350X

• 20% less fuel consumption • New world record for speed & distance • Mid-size plane: 210-250 • Entry into service: Oct. 2011

Game Changer & Hub Buster

Experiencing & Sharing

Trends to take notice of:

Top 10

Destinations National Geographic has cited Nova Scotia’s Cape Breton and British Columbia’s Great Bear Rainforest as two of its top 10 destinations for 2013.

Experiential Travel – adventure, authenticity, with broader definitions

Experiencing & Sharing

Trends to take notice of:

– Digital detox – disconnection

Forward looking opportunities

Take notice of big picture

Tap into markets

Listen to the conversation

Facilitate travel decision

Align offerings

Consumer site: Canada.travel

Corporate site: corporate.canada.travel

Follow-us @CTCCCT

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