Travel Intentions Study Wave 9 (February ‘08) · summer season and lead-in spring shoulder. 3 Background (cont’d) This information that can be used by tourism marketers to: Align

Travel Intentions StudyWave 9 (February ‘08)

Telephone Survey

Presented to:Ontario Tourism Marketing Partnership Corp.FedNor – Industry CanadaOntario Ministry of Tourism

April 9, 2008

A1802

2

BackgroundThis annual study is conducted in Ontario’s key US and Canadian source markets with the objective of measuring:

Travel intentions for the spring and summer seasons;

Destination selection during those seasons;

Impressions of Ontario as a possible travel destination;

Perceived impediments to selecting travel destinations in Ontario.

The information is then related to previous waves of tracking inorder to put current intentions into context and establish a meaningful trend.

The findings help forecast market conditions for the peak summer season and lead-in spring shoulder.

3

Background (cont’d)

This information that can be used by tourism marketers to:

Align the seasonal offering to forecast demand;

And, perhaps more importantly, to identify potential impediments to Ontario travel and reduce their impact.

The study can also assist with messaging and targeting of promotional communications and other marketing initiatives.

4

2008 is a transition year between telephone and online data collection methodologies.

The current study consists of two separate matched surveys – one in each of the data collection modes.

The 2008 study therefore maintains continuity with past waves by continuing the time series using telephone data collection, and provide a new benchmark for future waves conducted online.

This two-phased approach will also allow us to isolate methodology effects and possibly establish a calibration routine for retaining comparability to the historical telephone record on key variables once we switch to an entirely web-based approach in subsequent waves.

Methodology

5

The information in this presentation is derived only from the telephone data base to illustrate Travel Intention trends, thereby eliminating methodology effects.

Statistical variance has been thoroughly checked, and all changes that are statistically significant identified in the following charts.

Interviewing was conducted among individuals 18 years or older.

As in previous waves, an exacting methodology was used:Modified random digit dialing (RDD) using a seed sample drawn from up-to-date telephone listings;Multiple callbacks (up to 8 calls to achieve a completion once contact is made with the household);One additional callback to “soft” refusals.The Trohdal-Carter methodology was used to select a single age-eligible respondent in each household.

Methodology (cont’d)

6

The telephone sample was assigned disproportionately by market as follows:


Canada: Assigned Achieved Montreal CMA 150 150 Quebec City CMA 100 99 Toronto 200 201 Ottawa CMA 100 100 Ontario 500M+ ex- Toronto/Ottawa 100 102 Ontario 100-499.9 M 100 101 Ontario 30-99.9M 50 51 Ontario 10-29.9M 30 30 Ontario < 10M 30 35 Manitoba 100 100 Total: 960 969

7


Continued on the next page

US: Assigned Achieved Rochester NY|P 150 151 Buffalo NY 150 152 Syracuse NY 100 106 New York City NY 100 127 Nass. Suff. NY 30 30 Other NY 45 45 Chicago IL 125 132 Other IL 45 45 Indianapolis IN 45 48 Other Indianapolis 50 50 Boston NECMA 75 75 MASS ex Bost. NECMA 30 32 Detroit MI 150 158 North MI MSA's 40 42 MI Bal 30 30 Minn. St Pl MN 100 103 Other MN 25 28

8


Continued from the previous page

US: Assigned Achieved Clev. Lorn. Elyr. OH 100 101 Cincinnati OH 50 51 Columbus OH 50 76 Other OH 70 70 Pittsburgh PA 150 153 Philadelphia PA 85 85 Other PA 70 70 Milw. Waukesha WI 100 105 Other WI 45 46 Washington DC 60 63 MD ex Washington 50 52

Total: 2,120 2,226

US Survey Coverage

Quebec City

Montreal

Ottawa

Toronto

SyracuseBuffalo

New York

Pittsburgh

Detroit

Cleveland

Boston

Columbus Washington

Cincinnati

Milwaukee

Indianapolis

Chicago Philadelphia

Minneapolis

Rochester

Tier 2Tier 3

Tier 1 DMAs

9

Winnipeg

Montreal

Domestic Market

Border MarketsOntario

Montreal

Quebec City

Winnipeg

Quebec City

Canadian Survey Coverage

10

11

In total, 3,195 interviews were completed:969 in Canada;2,226 in the United States.

As part of data processing, the RDD sample was weighted in three stages using the most recently available census information from each country:

Household size within market;Household conversion weight (to correct for differential selection probabilities within household due to variations in number of age-qualified individuals within each);Age within gender within market.


Propensity To Travel &Trip Planning

13

Trend in General Travel Intentions and Propensity to Travel

Q. Are you considering taking an out-of-town trip of one or more nights away from home in the next 12 months?Q. How, if at all, have your travel plans changed over the past two years? Are you inclined to… ?

Percent of Americans

71% 67% 67% 66% 66%

18% 22% 21% 21% 20%

0

20

40

60

80

100

Nov'03

Feb'04

May'04

Aug '04

Feb '05

May '05

Feb '06

Feb '07

Feb '08

%

Plan to travel innext 12 months

Non-Travellers (Havenot travelled overnightin past 2 years andplan not to do so innext 12 months)

14

Trend in General Travel Intentions and Propensity to Travel

Q. Are you considering taking an out-of-town trip of one or more nights away from home in the next 12 months?Q. How, if at all, have your travel plans changed over the past two years? Are you inclined to… ?

Percent of Canadians

65% 64% 62% 66% 69%

24% 24% 24% 21% 20%

0

20

40

60

80

100

Nov'03

Feb'04

May'04

Aug '04

Feb '05

May '05

Feb '06

Feb '07

Feb '08

%

Plan to travel innext 12 months

Non-Travellers (Havenot travelled overnightin past 2 years andplan not to do so innext 12 months)

15

Spring Travel Intentions (March/May)

Americans

53% 52% 52%58%

54%

Feb'04

Feb'05

Feb'06

Feb'07

Feb'08

Intend to take at least one

overnight trip this March/May

Percent of American and Canadian Adults

Canadians

52% 54%57%

52% 52%

Feb'04

Feb'05

Feb'06

Feb'07

Feb'08

16

Rationale For Not Travelling This March/May

Why not?* …. US Canada

Too busy 29% 31%

Not at this time of year 31% 25%

Financial reasons 16% 22%

Family reasons 11% 12%

Lack of interest 9% 10%

*Based on response to open-ended question.

52%

14%34%

Do not planto travel

in next 12months

Not thiscoming season

In this coming season

Total American Adults

57%

12%31%

Do not planto travel

in next 12months

Not thiscoming season

In this coming season

Total Canadian Adults

17

81%

79%

68%

61%

30%

25%

Statistically significant increase at 95% level of confidence.

Various Aspects Considered in Planning Process for Pleasure Travel

Percent of travellers — Feb ‘08

In general I look for discounts on travel

Like to have all travel arrangements taken care

of before I leaveUse the Internet to plan my

pleasure travel and to access various choices

Use the Internet to bookmy pleasure trips

I am likely to make lastminute booking decisions

I prefer to use a travel agent rather than research

options on my own

Americans

79%

75%

64%

51%

39%

41%

Canadiansvs. Feb. ‘04

-2%

-3%

±0%

+4%

+3%

-1%

vs. Feb. ‘04

+3%

-4%

+6%

+9%

+6%

+3%

vs. Feb. ‘07

-2%

-1%

+1%

+3%

+1%

-3%

vs. Feb. ‘07

+4%

-4%

+3%

+4%

+6%

±0%

Statistically significant decrease at 95% level of confidence.

Travel Intention Details

19

Percent Of Total US Adults Stating Intend To Travel To …

March/May

Destinations:

Feb. ‘04 %

Feb. ‘05 %

Feb. ‘06 %

Feb. ‘07 %

Feb. ‘08 %

Within Own State 28 24 23 21 24 Elsewhere In US 44 42 41 40 41

Ontario 8 6 6 7 4

Toronto 4 3 3 3 2

Niagara Falls 4 3 3 3 2

Elsewhere in Ont. 3 3 3 4 2

Other Canada 5 3 3 5 5

Mexico/Caribbean 9 8 7 8 8

Other Country 9 8 8 9 8

-1,745

-1,375

-2,340

-978

-1,647

-737

-131

-473

-282

As % Of

Feb. ‘04 Projection

-9%

-4%

-42%

-37%

-56%

-31%

-4%

-7%

-4%

Intended Travel Patterns Of US Residents— Next Season

– +

Change 04 - 08(Projected Number

In Thousands)

Significant decrease versus Feb. ‘04 at 95% confidence level

Figures in blue are significantly higher versus Feb ’07. Those in red are significantly lower

20

Percent Of Adults In Each Case Stating Intend To Travel

To Ontario During … March/May June/August

Feb ‘04

Feb ‘05

Feb ‘06

Feb ‘07

Feb ‘08

Feb ‘04

Feb ‘05

Feb ‘06

Feb ‘07

Feb ‘08

Buffalo % 29 31 21 20 27 36 27 24 25 31 Rochester % 23 20 20 16 13 37 19 21 19 17 Syracuse % 17 8 12 10 18 26 14 16 12 32 Cleveland % 18 12 10 14 6 26 13 15 11 15 Detroit % 20 13 12 14 16 27 20 16 14 12 Boston % 3 6 7 3 5 9 8 9 4 5 New York City % 9 10 9 8 3 14 9 10 4 5 Pittsburgh % 8 8 6 6 6 18 9 10 8 7 Philadelphia % 9 2 5 6 2 11 9 9 7 7 Washington DC % 9 4 4 2 3 10 6 5 1 7 Cincinnati % 6 5 10 7 2 14 6 10 9 8 Chicago % 2 2 4 6 8 10 6 7 12 11 Indianapolis % 6 2 2 2 * 14 5 7 7 0 Milwaukee % 3 2 4 1 2 6 7 4 2 3 Minneapolis % 5 1 4 4 2 9 6 4 6 6 TOTAL US % 8 6 6 7 4 12 8 8 8 8

Ontario Travel Intention IncidenceBy Specific US Market

Significant increase versus Feb. ‘04 at 95% Significant decrease versus Feb. ‘04 at 95% * Less than 0.5%.

21

-373

+248

+262

+183

+672

+295

+517

+261

Percent Of Total Canadian Adults Stating Intend To Travel To …

March/May

Destinations:

Feb. ‘04 %

Feb. ‘05 %

Feb. ‘06 %

Feb. ‘07 %

Feb. ‘08 %

Ontario 30 26 25 28 30

Toronto 13 10 10 10 9




United States 20 19 21 21 24



As % Of


+7%

-23%

+27%

+11%

+9%

+27%

+23%

+45%

Intended Travel Patterns Of Canadian Residents— Next Season

– +


In Thousands)

Significant increase versus Feb. ‘04 at 95%Significant decrease versus Feb. ‘04 at 95%


22

-443

+14

+98

+58

+483

+115

+416

+191

Percent Of Total Canadian Adults Stating Intend To Travel To …

March/May

Destinations:

Feb. ‘04 %

Feb. ‘05 %

Feb. ‘06 %

Feb. ‘07 %

Feb. ‘08 %

Ontario 30 26 25 28 30

Toronto 13 10 10 10 9




United States 20 19 21 21 24



As % Of


+0%

-29%

+21%

+4%

+3%

+20%

+4%

+35%

Change In Volume Among Canadians Adjusted For Source Market Pop. Growth — Next Season

– +


In Thousands)*

Significant increase versus Feb. ‘04 at 95%Significant decrease versus Feb. ‘04 at 95% *Adjusted for population growth

23

Percent Of Adults In Each Case Stating Intend To Travel

To/Within Ontario During … March/May June/August

Feb ‘04

Feb ‘05

Feb ‘06

Feb ‘07

Feb ‘08

Feb ‘04

Feb ‘05

Feb ‘06

Feb ‘07

Feb ‘08

Quebec City % 9 11 10 7 6 14 14 8 7 9

Montreal % 18 18 17 13 15 22 16 18 10 17

Ottawa % 44 35 34 32 47 48 32 32 41 43

Toronto % 28 28 23 25 37 37 26 29 32 39

Other Ontario % 40 31 33 41 36 43 31 29 38 31

Winnipeg % 17 18 16 17 10 29 21 21 18 25

TOTAL CANADA % 30 26 26 28 30 35 26 26 29 30

Ontario Travel Intention IncidenceBy Specific Canadian Market

Significant increase versus Feb. ‘04 at 95%Significant decrease versus Feb. ‘04 at 95%


General Experience With And Interest In Ontario

25

29%

14%

25%

1%

31%

35%

9%25%

1%

30%

Latent Interest In Ontario Travel Among Americans (Feb ‘08)Percent of US Residents

20%

10%

9%

61%

Plan to take overnight trip to Ontario

in next 6 months

Not in next 6 monthsand haven’t been

there in past 2 years

Not in next 6 months but have

been to Ontario in past 2 years

27%

13%

29%

1%

30%

Very

Fairly

Not very

Not at all

Don't knowToronto

Interest in visiting in next 2 years

Niagara Falls

Other Ontario

Change In Interest vs. Feb. ‘04

Very Not At All

+2% ±0%

±0% -1%

+1% -3%Non-travellers

= 68 million

Significant decrease versus Feb. ‘04 at 95%Significant increase versus Feb. ‘04 at 95%

Impact Of Negativity SpecificTo Ontario

27

What are these specifically?

34%

18%

16%

7%

7%

7%

5%

4%

3%

Passport requirements

Difficulty/delays at the border

Cost/exchange rate

Bad weather

Issues of safety/violence/security

Anti Americanism

Terrorists (in Canada)

The Airport (negative mentions)

Diseases/SARS

Change vs.

Feb ‘07

-6

+6

+12

-1

±0

+1

-1

N/A

+2

Are there any specific events or issues that you have heard about that make you less inclined to travel to Toronto, Niagara Falls or other places in Ontario?

Percent of Americans aware of Ontario

90%10% Yes

No

9% in Feb ‘07

Statistically significant at 95% level of confidence.

28


59%

42%

26%

14%

7%

5%

4%

2%

Difficulty/delays at the border

Passport requirements

Cost/exchange rate

Too Much Traffic

Issues of safety/violence/security

People are not Friendly

Terrorists (in Canada)

Diseases/SARS


Percent of Buffalo Residents aware of Ontario

73%

27%Yes

No

23% in Feb ‘07


Change vs.

Feb ‘07

+43

+1

+23

+8

-10

+2

-11

+1

(n=34^^)** Caution: Extremely small base

29

78%

22%Yes

No


Percent of Canadians

17% in Feb ‘07

Change vs. Feb ‘07

+13

+2

+5

+3

N/A

+1

-2

-3

N/A

N/A

52%

12%

12%

5%

4%

4%

4%

3%

3%

3%

Issues of violence/crime

Too much traffic

Cost/expensive

Not safe/secure

Dirty

Too many people

Diseases/SARS

City too big

Transport issues

Poor highway conditions



Perceptions Of Ontario

31

Overall Rating Of Ontario As Pleasure Travel Destination & Comparison With Ideal (Feb ‘08)Average rating on 10-point scale among travellers

Change Since Feb ‘07 %

Feb ‘06 %

Feb ‘05 %

Feb ‘04 %

+0.1 +0.1 -0.1 N/A±0.0 ±0.0 -0.2 -0.1

-0.1 +0.1 +0.1 N/A+0.1 +0.1 -0.2 -0.1+0.1 ±0.0 -0.2 N/A

Comparison with “Ideal” (Ideal = 10)Overall rating

+0.2 +0.2 -0.1 N/A+0.2 +0.2 +0.1 -0.1

+0.1 +0.2 ±0.0 N/A-0.1 +0.1 ±0.0 -0.3±0.0 +0.4 +0.3 N/A

7.2

7.6

7.3

6.5

5.3Ontario

Niagara FallsTorontoChicago

Americans

7.7

7.8

7.2

6.2

5.6Ontario

Niagara FallsToronto

Chicago

Canadians

32

1%

Any Destination In Ontario(Toronto = 0.1% Niagara Falls = 0.2%)

1%

Any Destination In Ontario(Toronto = 0.4% Niagara Falls = 0.0%)

Ontario’s Standing Among “Must See” Destinations

American Travellers

Canadian Travellers

20%18%

15%13%

12%12%

What do Americans look for in a ideal destination?

What do Canadians look for in a ideal destination?

Beautiful ScenerySpecific Activities/

ExperiencesHistory

Nature

Culture

Curiosity

19%19%

17%13%

11%9%

Beautiful Scenery

History

CultureCuriosity/Always Wanted To Visit

NatureSpecific Activities/Experiences

(sightseeing/sports/outdoor activities)

33

Ontario Imagery RatingsAverage on 10-point scale among American travellers


Among Americans

Feb ‘04

Feb ‘06

Feb ‘07

Feb ‘08

Attributes In Order Of Importance:

Safe from terrorists & criminals 7.9 7.5 7.6 7.6

Good value for the money 7.4 6.9 6.9 6.7

Lots to see and do 7.8 7.6 7.6 7.4

Friendly destination 7.9 7.5 7.6 7.7

Don’t have to worry about your health 7.8 7.6 7.6 7.5

Offers unique & different experiences N/A 7.2 7.2 7.3

Offers destinations you can drive to 7.5 7.3 7.2 7.3

Good health services for visitors 7.2 6.7 6.6 6.8

A place for having fun and being entertained NA NA 7.2 7.3

A place you would recommend visiting NA NA NA 7.2

-0.3

-0.7

-0.4

-0.2

-0.3

-0.3

-0.2

-0.4

-0.1

NA

Change SinceFeb ‘04

– +

Vs.Feb. ‘05

Vs.Feb. ‘07


34

Ontario Imagery RatingsAverage on 10-point scale among Canadian travellers

Among Canadians

Feb ‘04

Feb ‘06

Feb ‘07

Feb ‘08

Attributes In Order Of Importance:

Safe from terrorists & criminals 8.5 7.8 7.8 7.9

Good value for the money 7.5 7.2 7.3 7.2

Friendly destination 8.2 7.8 7.9 7.8

Don’t have to worry about your health 8.5 8.3 8.3 8.4

Lots to see and do 8.3 7.9 7.9 7.9

Offers unique & different experiences N/A 6.8 6.9 6.8

Good health services for visitors 8.0 7.7 7.6 7.8

Offers destinations you can drive to 8.6 8.2 8.2 8.3

A place for having fun and being entertained NA NA 7.4 7.7

A place you would recommend visiting NA NA NA 7.8

-0.6

-0.3

-0.4

-0.1

-0.4

-0.2

-0.3

+0.3

±0.0

NA


– +

Vs.Feb. ‘05

Vs.Feb. ‘07

Statistically significant at 95% level of confidence.Figures in blue are significantly higher versus Feb ’07. Those in red are significantly lower

35

Ontario Ratings For Trip TypesAverage on 10-point scale among American travellers

Among Americans

Feb ‘04

Feb ‘06

Feb ‘07

Feb ‘08

Nature & outdoors 7.6 7.4 7.5 7.5

Touring trip 7.1 6.9 6.9 6.9

Arts, culture & history 6.8 6.7 6.5 6.6

Big city trip 6.7 6.6 6.6 6.7

Resort trip 6.5 6.4 6.4 6.3

-0.1

-0.2

-0.2

-0.2

±0.0


– +


36

Ontario Ratings For Trip TypesAverage on 10-point scale among Canadians travellers

Among Canadians

Feb ‘04

Feb ‘06

Feb ‘07

Feb ‘08

Nature & outdoors 8.1 8.0 7.9 8.1

Touring trip 7.4 7.2 7.2 7.4

Arts, culture & history 7.4 7.2 7.2 7.3

Big city trip 7.3 7.2 7.2 7.3

Resort trip 6.9 6.6 6.7 6.8

-0.1

-0.1

±0.0

±0.0

±0.0


– +


Toronto Details

Projected Travel To Toronto Next Season (Spring) By Specific Market

39

Percent Of Adults In Each Case Stating Intend To Travel To Toronto During …. March/May

Feb ‘04 Feb ‘05 Feb ‘06 Feb ‘07 Feb ‘08 Buffalo % 15 15 10 12 15 Rochester % 13 9 8 8 9 Syracuse % 3 5 4 5 6 Cleveland % 8 2 4 5 1 Detroit % 10 8 8 5 6 Boston % 1 3 1 2 5 New York City % 6 8 4 4 1 Pittsburgh % 4 2 2 3 2 Philadelphia % 3 * 2 1 2 Washington DC % 8 3 3 1 3 Cincinnati % 4 1 5 1 2 Chicago % 1 2 2 1 5 Indianapolis % 1 2 1 2 – Milwaukee % 2 1 3 1 1 Minneapolis % 3 * 1 1 – TOTAL US % 4 3 3 3 2

Toronto Travel Intention IncidenceBy Specific US Market

Significant decrease versus Feb. ‘04 at 95%Significant increase versus Feb. ‘04 at 95%


40

Toronto Travel Intention IncidenceBy Specific Canadian Market

* Excluding TorontoSignificant decrease versus Feb. ‘04 at 95%

Percent Of Adults In Each Case Stating Intend To Travel To/Within Toronto During … March/May

Feb ‘04 Feb ‘05 Feb ‘06 Feb ‘07 Feb ‘08

Quebec City % 6 7 4 4 3

Montreal % 12 11 11 9 10

Ottawa % 33 23 26 18 32

Other Ontario* % 22 15 15 9 16

Winnipeg % 9 12 6 11 6

TOTAL CANADA % 18 13 12 10 9


Toronto’s Image

42

Overall Rating Of Toronto & Chicago As PleasureTravel DestinationsAverage rating (10-point scale) among travellers aware of Toronto

Americans

7.2 7.5

6.4 6.5 6.77.3 7.2

6.5

Feb2008

Feb2007

Feb2006

Feb2005

Americans

7.2 7.5

6.4 6.5 6.77.3 7.2

6.5

Feb2008

Feb2007

Feb2006

Feb2005

Toronto Chicago

Canadians

7.1 7.26.2 5.8 5.9

7.2 7.3

6.2

Feb2008

Feb2007

Feb2006

Feb2005

43

Toronto Ratings For Specific Attributes (Feb. ‘08) Average rating (10-point scale) among travellers aware of Toronto

Americans

7.1

7.2

7.0

7.6

6.6

6.7

7.2

7.2

7.4

7.2

A place with great restaurants

A place with great nightlife

Great place for shopping

Great place for theatre/cultural performances

Great place for cultural& arts festivals

Strolling around to seebuildings & sights

Great place for visiting art galleries & museums

Lots for adults to see & do

Lots for children to see & do

Great place for pro sports events

Canadians

7.6

7.8

8.0

7.8

7.3

7.7

7.9

7.4

7.8

8.0

44

CN Tower 8%

32%27%

17%15%15%

12%11%

9%7%

Reasons For Interest In TorontoPercent of those who state an interest in visiting Toronto

30%12%

10%10%

8%7%7%7%7%

Americans:Culture/the arts

RestaurantsSports

ShoppingMuseums

NightlifeSpecific tourist sites

SightseeingNever been there before

Canadians:Culture/the arts

ShoppingSports

Specific tourist sitesRestaurants

Visit familyMuseums

Visit friendsWork/business

Niagara Falls Detail

46

Intend To Visit Niagara Falls This Spring (Mar/May ‘08)Percent of Americans

23%18%

5%

9%

3%3%

2%2%

9%

2%

1%

0%

3%13%

3%Total Americans*

BuffaloRochesterSyracuse

New York CityOther NYS

Chicago

DetroitNorth Michigan

ClevelandOther OhioPittsburgh

Washington, DC

Wisconsin

Other US *New and Mid Markets only.

47

Intend To Visit Niagara Falls This Spring (Mar/May ‘08)Percent of Canadians

32%

15%

3%3%

4%

14%

17%12%

Total Canadians

Residents of:Toronto

HamiltonOttawa

Ontario 100 - 499M

MontrealQuebec City

Winnipeg

48

Overall Rating Of Niagara Falls Relative To Toronto As Pleasure Travel DestinationAverage rating (10-point scale) among travellers aware of Niagara Falls

Americans

7.6 7.7 7.5 7.57.2 7.57.3 7.2

Feb2008

Feb2007

Feb2006

Feb2005

TorontoNiagara Falls

Canadians

7.8 7.7 7.6 7.87.1 7.27.2 7.3

Feb2008

Feb2007

Feb2006

Feb2005

49

63%

54%

17%

8%

6%

5%

5%

5%

Reasons For Interest In Niagara Falls - CanadaPercent of those who state an interest in visiting Niagara Falls

61%

37%

10%

8%6%

Americans:The Falls

Have been there before

Beautiful

The Casino

The water/river

Canadians:Been there before

The Falls

The Casino

Shopping

Restaurants

Nature

Attractions (general)

Wineries

32% in Buffalo31% in Rochester

35% in Hamilton24% in Toronto

Summary And Implications

51

Summary

Spring Travel Intentions

Over the past year, Ontario appears to have had some domestic success in terms of igniting enthusiasm for overnight travel within the province among residents of its major urban markets.

In fact, among Toronto residents, interest in visiting Ontario’s destinations during the spring season has reached the highest level registered over the course of this tracking series.

And, interest expressed among residents of Ottawa suggests recovery to levels last seen in 2004.

52

Summary (cont’d)

Beyond the boundaries of Ontario, however, intransigence persists.

There is some indication that momentum continues to build in Chicago and that recovery has taken place in certain Near Markets – Buffalo, Syracuse and, more gradually, Detroit.

However, there is no evidence that intentions to travel to Ontario during the spring season have improved in any consistent manner versus last year across the US Near and Mid Markets.

Moreover, intentions have declined in Rochester and across Ohio.Interest also appears to be suppressed in major Mid Market cities, such as New York , Philadelphia and Washington DC.

53

Summary (cont’d)

The situation in Quebec implies stability, although stated interest in Quebec City itself currently sits at the low end of the range recorded over the past few years.

In Winnipeg, the trend line points to declining momentum as residents of this city set their sites on alternative destinations both within Canada and elsewhere.

From these trends, it might be hypothesized that the industry will be supported increasingly by the domestic market in the coming months…

…with perhaps somewhat greater input from regions of the US that are within the immediate vicinity of the major border crossings (Buffalo and Detroit).

54

Summary (cont’d)

Overall, significant unrealized opportunity continues to exist elsewhere in the US.

And, the French Quebec market continues to represent a challengewith respect to encouraging a firm commitment to choose Ontario.

55

Summary (cont’d)

Summer Travel Intentions

Looking forward to the summer season, there is no reason to believe that prospects in the US will improve substantively relative to last year, at least under existing marketing conditions.

If anything, declining US economic prospects and the persistenceof a relatively strong Canadian dollar are likely to further suppress interest in Ontario among Americans during this year’s peak season.

Evidence suggests that the major domestic urban markets and possibly English Montreal will play a more robust part in fueling summer travel within the province.

Possibilities for sourcing volume from smaller Ontario communities during the summer are uncertain at this time.

56

Summary (cont’d)

Impediments to choosing Ontario

In the domestic market, safety issues associated with crime represent the major impediment to choosing an Ontario destination for pleasure travel in the near future.

One can only assume that much of this negativity is directed to Toronto and plays some role in reducing the volume of domestic travellers projected to choose this specific destination during the spring season.

Such issues are likely to be particularly worrisome in smaller communities beyond Ontario’s major cities.

In the US, there are indications that perceived border crossing issues continue to act as a drag on interest and that cost and financial concerns are beginning to make their presence felt more strongly.

57

Summary (cont’d)

Image

With respect to brand image, overall perceptions of Ontario as atravel destination have remained stable and moderately positive.

Ratings for specific attributes have not altered in any substantive way since February of 2007.

This means that Ontario continues to be more widely criticized for safety issues in the domestic and other Canadian markets than was the case in the earlier part of the decade,

…and that value for the money impressions remain suppressed in the US versus 2004.

These data suggest, as well, that it is difficult to impress travellers with the diversity of experience offered in the highly competitive and evolving tourism environment that exists across these broad markets.

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Conclusions (cont’d)

As one might expect, given the overall pattern of stability, Ontario’s positioning in the marketplace continues to be tied primarily to its natural, outdoor heritage.

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Implications

Main Implications

Results of this most recent wave of tracking suggest that Ontario should could continue to pursue the strategic course set for marketing and development of the province’s tourism industry.

There is evidence that, while Toronto, as a destination, continues to present unique challenges, recent communications and marketing efforts put in place over the past year have helped sustain increased interest in the province among domestic travellers.

This is true, despite the buoyancy of the Canadian dollar and a growing desire among Ontario residents not only to travel to theUS, but to visit overseas destinations as well.

As with any marketing initiative, however, there is a need to adapt as conditions change and consumer preoccupations and preferences shift.

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Implications (cont’d.)

With regard to the immediate future, there is an argument for focusing on the domestic market with the objective of making the most of the fertile ground that currently exists here.

Short term objectives should also place some emphasis on the Near US Markets with a view to translating resurgent interest into behaviour, and in a manner that addresses existing needs and concerns.

Attractive packaging and pricing

Effective targeting to consumer groups that are congruent with Ontario’s desired offer and price points

Tactically matching specific attractions and events near the border to relevant interest groups on the US side

Continued communication of the absence of passport requirements and the relative ease with which the border can be crossed– This may be particularly relevant to Ontario border regions, such as

Niagara Falls

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With the exception of dealing with border perceptions, a similarapproach might be adopted for English Montreal.

Still, significant growth potential and unrealized opportunity exists largely in the major US Mid Markets.

A longer-term approach is required to see a return here, but the process should be put in place now.

Identify the specific markets of focus

Isolate the demographic and psychographic targets

Determine the positioning and product of relevance in each case

Envision a long-term strategy

Contemplate promoting iconic attractions, such as the Falls morewidely in the US, but link them to the broader tourism offering to enhance appeal and consideration for extended stays

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With regard to creative and image, the current emphasis on emotive drivers, diversity and key proof points of distinctiveness remains relevant, as does an integrated multi-media approach to drive this mulit-faceted message home.

It should be realized, though, that corresponding shifts in fundamental impressions of the province are likely to occur quite gradually, thereby calling for sustained and consistent effort.

There is also perhaps a need to treat Toronto as a special case, at least within the domestic market. Given its traditional place as a primary tourism driver, Toronto may require specific image enhancement to continue contributing in this manner.

Recent softening of intentions directed toward the GTA support an argument to take some initiative in this areaBeyond PR initiatives, an emphasis on culture and the arts with links to culinary and shopping opportunities may offer the most immediatepotential to stimulate positive intentionsToronto’s spring/summer sporting events may also offer significant growth potential, particularly in the domestic market

Documents

Travel Intentions Study Wave 9 (February ‘08) · summer season and lead-in spring shoulder. 3 Background (cont’d) This information that can be used by tourism marketers to: Align