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1 Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce Travel Trends for USA and Utah: An International Perspective Presented by: Mark Brown Office of Travel and Tourism Industries MANUFACTURING & SERVICES International Trade Administration U.S. Department of Commerce May 2010 Presented to: The Utah Travel & Tourism Industry

1 Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce Travel Trends for USA and Utah: An International

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1Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Travel Trends for USA and Utah:An International Perspective

Presented by:

Mark BrownOffice of Travel and Tourism IndustriesMANUFACTURING & SERVICESInternational Trade AdministrationU.S. Department of CommerceMay 2010

Presented to:

The Utah Travel & Tourism Industry

2Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Agenda for Today

• Overview of OTTI & Commerce Travel & Tourism Services

• Travel Trends for the U.S.& Western USA

• Forecast for International Travel

• Policy and Promotion Issues

• Q & A

3Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

“Who is OTTI?”

The National Tourism Office for the U.S.

4Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Department of Commerce (DOC)

International Trade Administration (ITA)

Manufacturing and Services (MAS)

Services (S)

Office of Travel and Tourism Industries (OTTI)

Department of Commerce Agencies Involved

5Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

What We Do at OTTI…

Research

Publications

Office ofTravel & Tourism

Industries

IndustryOutreach

Policy

BusinessDevelopment

6Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

U.S. Integrated Statistical Systemfor Measuring International Travel & Tourism

DeliverablesDeliverablesInputsInputs

GDP / Contributionof Travel & Tourism

to GDP

TTSATravel & Tourism

Satellite Accounts System(OTTI / BEA)

Balance of TradeReceipts & Payments

(Bureau of Economic Analysis)

I-92Estimate of U.S. Departures(DHS Immigration Statistics)

CANADASurvey of Visitorsto/from the U.S.

(Statistics Canada)

Survey of InternationalAir Travelers

(OTTI) Market Potentialand Profiles

for industry export expansionand competitiveness

Other FederalAgency Uses

DHS (CBP & TSA performance) State (consulate staffing needs)

BLS (Airfare Pricing index)

I-94Census of International Arrivals

(DHS Immigration Statistics)

OFFICIAL AIRLINE GUIDECensus of International

Flight Schedules(OAG)

MEXICOSurvey of Visitorsto/from the U.S.

(Banco de Mexico)

Forecast(OTTI / GII)

Travel Trade Barometer(OTTI / TMI / TIA)

Topical Studiese.g. Japan Outbound

7Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

U.S. Department Of CommerceInternational Trade Administration Tourism Resources

OFFICE OF TRAVEL &TOURISM INDUSTRIES

Office of Domestic Operations105 U.S. Offices

Foreign Commercial Service151 Offices in 83 Countries

http://www.buyusa.gov/eme/tra.html

http://trade.gov/cs/

8Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Impact of Travel on the U.S. Economy

(2009)

Source: U.S. Department of Commerce: Office of Travel and Tourism Industries & Bureau of Economic Analysis.

9Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Travel and Tourism Employment(2009)

Travel and tourism industries support 8.2

million American jobs!

• Food Services and Drinking Places– 2.5 million employees (31%)

• Traveler Accommodations– 1.6 million employees (20%)

• Shopping (Retail)– 844 thousand employees (10%)

• Air Transportation Services– 757 thousand employees (9%)

70% of all travel and tourism employment is accounted for by four sectors

Source: U.S. Department of Commerce, Office of Travel and Tourism Industries, Bureau of Economic Analysis.

10Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

International Travel & Tourism to the U.S.(2009)

• Largest services sector export –$121 billion in 2009.

• Third-largest merchandise/services export category.

• Generated a trade surplus of $22 billion.

• Supported 1.1 million jobs.

• International travelers spend 4-7 times more than domestic travelers on a trip:– Length of the trip is 2-4 times greater than domestic travelers.– International travelers have higher activity participation rates than domestic

travelers.– International travelers were more inclined to stay at hotels/motels & rent cars

than a domestic traveler.

• 4% of travelers, but 17% of traveler spending, payroll, employment and taxes.

11Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Global Travel Trends

12Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

$0

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$1,000

0

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1950

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2010

World Arrivals World Receipts

World Arrivals (millions) World Receipts ($billions)

1950 - 1980 1981 - 2010

World Tourism Arrivals & Receipts(1980-2010)

Source: U.N. World Tourism Organization

2009p880m$878b

13Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Top Ten Country Rankings of GlobalVisitors and Receipts (2009/2008)

All Countries $944 All Countries 880

1 United States $110 11.7% France 74 8.4%2 Spain $62 6.5% United States 55 6.2%3 France $56 5.9% Spain 52 5.9%4 Italy $46 4.8% China 51 5.8%5 China $41 4.3% Italy 43 4.9%

6 Germany $40 4.2% United Kingdom 28 3.2%7 United Kingdom $36 3.8% Turkey 26 2.9%8 Australia $25 2.6% Germany 24 2.8%9 Turkey $22 2.3% Malaysia 24 2.7%

10 Austria $22 2.3% Mexico 22 2.4%

Destination 2008 World Destination 2009 WorldRank Country Receipts* Share Country Visitors Share

($bil) (%) (mil) (%)

Source: U.N. World Tourism Organization.* Latest data available and excludes air passenger fares ($31.6 billion for U.S. alone). World shares based on unrounded data.

The United States leads the world in global travel and tourism exports (spending receipts) and ranks 2rd in global visitation.

U.S. Air Carriers

14Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Top 15 * Non-Asian Countries’ vs. Asia’sShare of Global International Arrivals (2002 -

2011)

* The top market share trend line includes the top 19 world destination countries excluding China (ranked 5), Hong Kong (ranked 12),Malaysia (ranked 15), and Thailand (ranked 18). The 4 Asian countries’ market share is forecasted to grow from 11.4% in 2002 to16.2% in 2011, depicted in the lower trend line.

Sources: Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce; Global Insight, Inc.

Note: the top four countries (France, Spain, U.S, and Italy) represented 31% of world visitors in 2002.

Top 15 Non-Asian Countries

10%

17%China + Hong Kong + Malaysia + Thailand

15Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Travel Trends to the U.S.

16Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

U.S. Visitors & Spending(1996-2009)

$0

$20

$40

$60

$80

$100

$120

$140

$160

0

20

40

60

80

100

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Visitors

Spending

Visitor spending (receipts) closely mirrors visitor volume. Spending was a record $121.1 billion in 2009, while visitor volume was 54.9 million.

millions of visitors $billions in spending

Sources: Department of Commerce, Office of Tourism Industries; Department of Commerce, Bureau of Economic Analysis; Statistics Canada; Banco de Mexico.

17Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

International Total * 54,884 -5% 15%1 Canada 17,964 -5% 53%2 Mexico 13,164 -4% 3%

Overseas ** 23,756 -6% 10%3 United Kingdom 3,899 -15% -3%4 Japan 2,918 -10% 11%5 Germany 1,687 -5% 4%6 France 1,204 -3% 3%7 Brazil 893 16% 34%8 Italy 753 -3% 9%9 South Korea 744 -2% 47%10 Australia 724 5% 28%

Origin of Visitor 2009p 09 / 08 10/09 Feb. YTD

(000s) (% change) (% change)

Top Origin Markets forInternational Travelers to the U.S.

* International travelers include all countries generating visitors to the U.S.** Overseas includes all countries except Canada and Mexico. Record year for Travel to U.S.

18Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Total Travel Record YearReceipts Travel Record

Origin Country 2009p Receipts Set($bil) ($bil)

Top Ten Travel Export Markets(2009 & record receipts/year)

Canada $16.22 $18.66 2008 Japan $12.88 $17.80 1995United Kingdom $12.13 $17.72 2008Mexico $8.34 $9.74 2008Germany $5.60 $6.68 2008

Brazil $4.25 2009France $4.23 $4.78 2008India $3.58 $4.29 2008China $3.50 $3.61 2008Australia $3.31 $3.70 2008

U.S. TOTAL $121.07 $141.71 2008

19Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Top U.S. Destinations1 for Overseas Visitors(2008)

New York 33.2% New York City 32.4%California 20.9% Los Angeles 11.0%Florida 20.7% San Francisco 10.3%Nevada 8.3% Miami 10.2%Hawaii 7.2% Orlando 9.6%

Illinois 5.6% Las Vegas 8.0%Massachusetts 5.0% Honolulu 5.9%Guam 4.7% Washington, D.C. 5.5%Texas 4.3% Chicago 5.4%New Jersey 4.1% Boston 4.4%

Top Market Top MarketStates Share Cities Share

1 These percentages are based on multiple responses. Main destination (one response) is also available.

20Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Western USA Visitors by Origin Country (2008)

Visitor Share Western USAOrigin Country Visitors of Western USA Share of Country

(000s) (%) (%)

TOTAL OVERSEAS 25,341 - - - - - -

Western USA 7,577 - - - 29.9%1 United Kingdom 1,260 16.6% 27.6%2 Mexico (air) 837 11.0% 49.0%3 Japan 702 9.3% 21.6%4 Germany 579 7.6% 32.5%5 Australia 417 5.5% 60.5%

6 France 389 5.1% 31.3%7 South Korea 350 4.6% 46.1%8 China 299 3.9% 60.6%9 India 297 3.9% 49.6%10 Netherlands 235 3.1% 38.7%Note: Overseas includes all countries except Canada and Mexico.

21Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Western USA Visitors by State (2008)

Western USA State Share State ShareDestination State Visitors of Western USA of Overseas

(000s) (%) (%)

TOTAL OVERSEAS 25,341 - - - - - -

Western USA States 7,577 - - - - - -

California 5,296 69.9% 20.9%Nevada 2,103 27.7% 8.3%Texas 1,090 14.4% 4.3%Arizona 710 9.3% 2.8%Washington 456 6.0% 1.8%Utah 380 5.0% 1.5%Colorado 380 5.0% 1.5%

2-year averageOregon 184 2.5% 0.7%Wyoming 84 1.1% 0.4%Alaska 64 0.9% 0.3%Montana 44 0.6% 0.2%Idaho 35 0.5% 0.1%

Note: Overseas includes all countries except Canada and Mexico.

22Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Travel Characteristics of Visitors fromTop Origin Markets (2008)

Travel U.K. France Western USACharacteristic Overseas Germany Japan

# of nights in U.S. 16 14 16 16 8 21

% 1st-time U.S. 24 % 15 % 23 % 29 % 31 % 22 %

Party Spending in U.S. $5,939 $5,902 $5,181 $5,336 $5,619 $7,163

Purpose of trip (net) 1 :

Leisure / Rec. / Holiday 64 % 70 % 60 % 62 % 78 % 58 %

Visit Friends/Relatives 33 % 28 % 35 % 37 % 16 % 38 %

Business / Convention 33 % 28 % 35 % 31 % 21 % 45 %

1 These trip purpose items are based on multiple responses. Main purpose of trip (one response) is also available.

23Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Information Sources Used by Visitors fromKey Markets to the U.S. (2008)

Information Overseas U.K. Germany France Japan W. USASources (%) (%) (%) (%) (%) (%)

Personal Computer 41 48 47 44 45 40 Travel Agency 39 29 26 33 48 42Airlines Directly 20 23 28 23 10 21Friends/Relatives 15 13 15 11 15 15Corporate Travel Dept. 9 9 14 9 7 12Travel Guides 8 7 14 7 18 8Tour Company 7 6 4 5 25 5State/City Travel Office 4 1 19 1 1 4Newspapers/Magazines 3 2 3 1 8 3Advance Decision (days): Trip Decision: 87 118 104 97 68 89 Airline Booking 61 94 74 67 43 58

Note: Multiple choice responses allowed for information sources.

24Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Information Overseas U.K. Germany France Japan W. USA

Sources (%) (%) (%) (%) (%) (%)Shopping 88 88 84 83 89 85 Dining in Restaurants 84 94 85 83 85 87Sightseeing in Cities 44 42 36 46 48 49Visit Historical Places 38 37 45 49 15 42Amusement/Theme Parks 26 32 25 20 14 31Visit Small Towns 26 26 31 23 29 33Art Gallery/Museum 22 19 26 37 7 22Cultural Heritage Sites 22 21 40 32 12 27Water Sports/Sunbathing 22 26 23 16 37 16Touring Countryside 19 21 37 17 15 28Visit National Parks 18 20 26 22 7 32Guided Tours 17 18 16 16 20 19Concert/Play/Musical 16 17 17 21 8 18

Note: Multiple choice responses allowed for activity participation.

Activity Participation while in the U.S.(2008)

25Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Overseas Travel to Utah2006-2008 average

• Utah share of total increasing past four years:1.2%, 1.4%, 1.5%, 1.6%

• Trip purpose to USA(net):– 73% leisure/vacation– 19% business– 10% convention– 9% visit friends/relatives

26Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Utah Overseas Visitors by Origin Country(2006-08)

Visitor Share

Origin Country Visitors of Utah

(%)

Utah Overseas 325,000

Western Europe 212,000 65%France 48,000 15%

United Kingdom 47,000 14%Germany 40,000 12%

Netherlands 27,000 8%

Asia 54,000 17%Japan 16,000 5%

South Korea 10,000 3%China (PRC) 8,000 2%

Oceania 17,000 5%Australia 12,000 4%

South America 15,000 5%Brazil 9,000 3%

27Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Traveler Volume from Canada(stays of 1 or more nights)

Source: Statistics Canada.

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

11,000,000

12,000,000

13,000,000

14,000,000

15,000,000

16,000,000

17,000,000

18,000,000

19,000,000

20,000,000

21,000,000

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

19,113,000

8,665,000

18,914,000

12,666,000

Pre-2009

2009p

Forecast

All-time Record

28Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

U.S. State Visitors Visitor-Nights Spending (000s) (000s) ($000s)

TOTAL U.S. (NET) 18,914 146,602 $12,159,398

Western US (sum 2008) 7,317 41,921 $3,993,500 Washington 2,142 6,078 $461,309 California 1,257 10,774 $1,072,402 Nevada 1,059 4,936 $867,651 Montana 650 2,035 $192,398 Arizona 515 8,587 $564,131 Oregon 409 1,386 $104,080

3-Year Average

Texas 371 3,749 $301,367 Idaho 259 757 $60,604 Utah 171 754 $84,329

Colorado 145 825 $108,707 Wyoming 88 236 $19,829

Canadian Visitors to Western USA States (2008)

29Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Canada to Utah3-year averages based on 2006-2008 combined data (1+ nights)

• Visitors: 171 thousand producing 754 thousand visitor-nights.

• Spending: $84 million; $/visitor = $493; $/visitor/night =$112.

• Purpose: holiday/vacation-65%; VFR-17%; business-14%; other-4%.

• Stay length: 4.4 nights, 1 night-30% ; 2-6 nights-49% , 7+ nights-21%

• Province: Alberta-39%; Ontario-26%; BC-20%; Saskatchewan-8%.

• Mode: auto-58%; Air-38%.

• Accommodations: hotel-53%; f/r-10%; not stated 20% (RV?).

• Age: 55 or older-54%; children under 20-6%.

• Timing: Q2-30%; Q1-27%; Q4-26%; Q3-17%.

30Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Forecasts for International Travel

31Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

UN/WTO Forecast for World Arrivals & Spending

for 2009 & 2010• 5% decline in world arrivals for 2009.

• The UN/WTO forecast for travel spending in 2009 is to expect a decrease of 6-8%.

• For 2010, the UN/WTO forecast for world arrivals is a 1-3% growth rate.

• Asia will show the strongest rebound, Europe & the Americas will probably take longer to recover.

32Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Arrivals in Millions

Sources: U.S. Department of Commerce, ITA, Office of Travel & Tourism Industries; Secretaria de Turismo (Mexico); Statistics Canada & IHS Global Insight, Inc. -- May 2010 forecast

46.943.6 41.2

46.149.2 51.0

56.0 57.954.9

58.261.2

64.267.3

71.877.0

0

10

20

30

40

50

60

70

80

90

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010(f) 2011(f) 2012(f) 2013(f) 2014(f) 2015(f)

International Visitors to the U.S. and Projections

(2001-2015)

33Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Zimbabwe

Zambia

YemenVietnam

Venezuela

Vanuatu

Uzbekistan

Uruguay

United States

United Kingdom

U.A.E.

Ukraine

Uganda

TurkmenistanTurkey

Tunisia

Togo

Thailand

Tanzania

Tajikistan

Syria

Switz.

Sweden

Swaziland

Suriname

Sudan

Sri Lanka

Spain

South Africa

Somalia

Solomon Islands

Slovenia

Slovakia

Sierra Leone

Senegal

Saudi Arabia

Rwanda

Russia

Romania

Qatar

Portugal

Poland

Philippines

Peru

Paraguay

PapuaNew Guinea

Panama

Pakistan

Oman

Norway

Nigeria

Niger

Nicaragua

New Zealand

Netherlands

Nepal

Namibia Mozambique

Morocco

MongoliaMoldova

Mexico

Mauritania

Malta

Mali

Malaysia

Malawi

Madagascar

Macedonia

Lux.

Lithuania

Libya

Liberia

Lesotho

Lebanon

Latvia

Laos

Kyrgyzstan

Kuwait

S. Korea

Taiwan

N. Korea

Kenya

Kazakhstan

Jordan

Japan

Jamaica

Italy

Israel

Ireland

Iraq Iran

IndonesiaIndonesia

India

Iceland

Hungary

Honduras

Haiti

Guyana

Guinea-BissauGuinea

Guatemala

Greenland

Greece

Ghana

Germany

Georgia

Gambia

Gabon

French Guiana

France

Finland Russia

Fiji

Ethiopia

Estonia

Eritrea

Equatorial Guinea

El Salvador

Egypt

Ecuador

East Timor

Dominican Republic

Dijbouti

Denmark

Czech Rep.

Cyprus

Cuba

Coted’IvoireCosta Rica

CongoDem. Rep.of Congo

Colombia

China

China

Chile

Chad

CentralAfrican

Republic

Cape Verde

Canada

Cameroon

Cambodia

Burundi

Burma

BurkinaFaso

Bulgaria

Brunei

Brazil

Botswana

Bolivia

Benin

Belize

Bel.

Belarus

Bahamas

Azerbaijan

Austria

Australia

Armenia

Argentina

Angola

Algeria

Albania

Afghanistan

Western Sahara

Bosnia &Herz.Serbia

Montenegro

Croatia

The BRIC(K)s

34Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Visitors to the U.S. from Brazil

555

652

838 848

941909

665

737

551

405349

385

485525

639

769

893

0

200

400

600

800

1000

93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09

000s of visitors

7

35Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Brazil

• Positives: Total outbound increasing trend. US share increasing. Economic and social environment on a roll. 9 consecutive monthly increases, many dramatic. Strong potential benefactor of any TPA impacts 2013+.

• Negatives: Potential World Cup cannibalization. Can US visa processing keep pace with demand.

• Forecast: very strong growth.

36Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Visitors to the U.S. from Russia

6580

94112 121 116

81 77 70 64 62 72 85 95115

143 143

0

100

200

300

400

500

93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09

000s of visitors

35

37Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Russia

• Positives: Flat 2009 visitation despite massive GDP decline. Three months of solid growth to USA. Low GDP growth in 2010 changing to solid GDP growth. Outbound has doubled in ten years. Simplified visa processing. growing middle class. new flights. Could benefit from any TPA impacts, if only because it's a "BRIC."

• Negatives: High inflation. USA share of total outbound stable. Population decline; visitor growth must come from more outbound trips and/or US higher share of total.

• Forecast: very strong growth.

38Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Visitors to the U.S. from India

102 104 123 143173

211 228274 270 257 272

309345

407

567599

549

0

200

400

600

800

1000

93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09

000s of visitors

12

39Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

India

• Positives: 5 consecutive months of growth. Many of the down months in 2009 were the largest annual share months, so bar is low. Strong and growing GDP. Total outbound growing, US share varies. "Travel-worthy" middle class now estimated at 100 million of 1.1B. Low potential of any TPA impacts.

• Negatives: can visa processing keep up with demand. Growth partially dependant increases in leisure travel, not just dominant business.

• Forecast: very strong growth

40Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Visitors to the U.S. from China (PRC)

178 158 167199 210 209 191

249 232 226

157203

270320

397

493525

0

200

400

600

800

1000

93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09

000s of visitors

14

41Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

China

• Positives: Seven consecutive months of monthly increases including near doubling in Feb. Will be a huge beneficiary of any TPA impacts. Tremendous growth in total outbound for more than a decade. U.S. share increasing since SARS. Very strong GDP growth. USA-China MOU.

• Negatives: Shanghai World Expo might keep some Chinese home.

• Forecast: Wowwie!

42Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Visitors to the U.S. from South Korea

408

498

592

749 747

364

499

662618 639 618 627

705758

806759 744

0

200

400

600

800

1000

93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09

000s of visitors

9

43Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

South Korea

• Positives: won at .000866 and stable. 6 consecutive months of fantastic growth off of dramatic declines. Solid GDP growth, then strong growth. Industrial production fully recovered. Moderate beneficiary of any TPA impacts in 2013+. Strong growth in total outbound up until 2008.

• Negatives: Important Q3 was actually up in 2009, thus bar is not that low. US share of total outbound declining. Potential World Cup cannibalization.

• Forecast: Very strong growth

44Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

National Export Initiative

• Goal: Double exports over the next 5 years to support 2 million American jobs

• Creates Export Promotion Cabinet that will consist of leaders from top agencies

• Focuses on three key areas:– 1. Expand trade advocacy in all its forms by:

• Educating U.S. companies about foreign opportunities• Directly connecting them with customers

– 2. Improving access to credit for small-and medium-sized businesses that want to export through the Export-Import Bank, and

– 3. Continuing enforcement of international trade laws.

45Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Travel Promotion Act

• Bill signed by President Obama on March 4, 2010

• Establishes an independent non-profit Corporation for Travel Promotion with a Board of Directors appointed by the Secretary of Commerce.

PURPOSE:

• To promote the U.S. to world travelers

• To augment USG communications on entry/exit policies

46Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Travel Promotion Act

• Umbrella - opportunity to shine beneath

• Exposure for top markets without full investment cost

• Work with corporation for travel promotion to ensure Utah product is seen!

• Better measures possible for ROI

47Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Travel Regional Investment Partnership ActT.R.I.P.

• H.R. 4676, introduced by U.S. Representative Sam Farr (CA).

• Creates a matching grant program in DOC to promote domestic tourism through local and regional partnerships.

• Administered by OTTI.

• CVBs, parks, resorts, attractions.

• Grants of $100,000 to $1 million: from annual $10 million fund. (5 years)

48Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

The Quickest Way to U.S. International Tourism Information: http://tinet.ita.doc.gov

Includes International Travel Research OnlineOrder, read, download & print the latest statistics on

international travel to and from the U.S.

•All of the latest summary tables highlighting specific tourism trends•More than 30 market and regional profiles available•Forecast of international travelers to the U.S. through 2013• Information on OTTI’s nine on-going market analysis (research) programs•Updated monthly statistics on arrivals and departures•Late-breaking TI News announcements and information releases•Links and information on the Commerce, Commercial Service Travel &

Tourism Team in the USA & Abroad•Links to other organizations in the travel industry

Sign up for TINews, OTTI’s FREE news service, for the latest in tourism industry news and program updates

50Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Travel Summary WHTIthrough November 2009

• Visitors to U.S.– Canada: Visitation up past 4 months, but down prior to and thru

pII.– Canada: Auto day visitors down 14 months prior to Nov rebound.– Mexico: Records set four years prior to 2008. Visitation down

big, started before WHTI. Air 14% of total Mexican inbound.– Caribbean: Visitation near 2000 record in 2008. Recent declines

started prior to WHTI phase II.

• U.S. Outbound Travelers--generally down– Canada: Down most months for past 5 years. Record low level. – Canada: Auto day visitors down every month for 5+ yrs.– Mexico: Up over previous two years; declines prior to WHTI pII.– Caribbean: Patterns nearly identical to Mexico; recent big declines.

51Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Policy Challenges

• Pandemic Issues

• Travel Promotion Act

• Visa Issues

• Border Security Issues—WHTI and ESTA

• Market Barriers

• World Perceptions

• Indicators of Competitiveness

• Climate Change and Sustainability Issues

52Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Travel Policy UpdateElectronic System for Travel Authorization

(ESTA)

On June 3, 2008 - The Department of Homeland Security announced a new online system that is part of the Visa Waiver Program (VWP). There are 35 countries eligible for the Visa Waiver Program.

Nationals or citizens of Visa Waiver Program (VWP) countries are required to complete an approved ESTA prior to boarding a carrier to travel by air or sea to the United States. 

Travelers under the VWP log on to the ESTA web-based system and complete an application online providing the biographical and eligibility information currently required on the paper I-94W form.

ESTA implemented as a mandatory program effective January 20, 2010.ESTA Web site: https://esta.cbp.dhs.gov.

53Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Travel Policy UpdateElectronic System for Travel Authorization

(ESTA)

An approved ESTA travel authorization is:

1.valid for up to two years or until the traveler’s passport expires, whichever comes first;

2.valid for multiple entries into the U.S.; and

3.not a guarantee of admissibility to the United States at a port of entry.  ESTA approval only authorizes a traveler to board a carrier for travel to the U.S. under the VWP.  In all cases, CBP officers make admissibility determinations at our ports of entry.

54Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

U.S.-China Memorandum of Understandingupdate

• Framework to permit group leisure travel from China to U.S.

• Needed because Chinese regulations restrict package tours to countries without a bi-lateral agreement, commonly known as Approved Destination Status. This MOU serves that purpose in opening these doors.

• U.S. travel destinations/companies able to organize and market package group leisure tours and market their brand.

• Open to 21 provinces now

55Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Market Development Cooperator Program(M.D.C.P)

• MDCP awards are partnerships between ITA and *non-profit industry groups that foster global competitiveness and enhance export capability.

• Competitive opportunity for innovative projects with a special emphasis on small and medium sized enterprises (SMEs).

* Who’s Eligible?•Trade associations

•State departments of trade•Chambers of commerce

•Small business development centers•Regional associations of trade and

economic development•Generally, private enterprises are not

eligible, unless partnering.

HTTP://ITA.DOC.GOV/TD/MDCP

Example: Local travel and tourism

businesses with Convention and Visitors Bureau

56Office of Travel & Tourism Industries, International Trade Administration, U.S. Department of Commerce

Market Development Cooperator Program(M.D.C.P)

Fast Facts:•Industry groups pledge to pay minimum of two-thirds of project cost•Cash match must at least equal the federal financial assistance then in-kind contributions can be used. •Individual award limit of $500,000. •Period does not exceed 3 years

Example: •If you receive $100,000, you must put up $200,000 in

match.•At least $100,000 of the $200,000 must be in cash, the rest may be in-kind contributions or cash.

HTTP://ITA.DOC.GOV/TD/MDCP