realizing canada’s international tourism potential
TRANSCRIPT
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
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
UNWTO 1970 Global Ranking
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
UNWTO 1990 Global Ranking
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
UNWTO 2011 Global Ranking
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
↑ from 16th in 2011
NIGHTLIFE
12th
↑ from 17th in 2011
RESORT & LODGING OPTIONS
10th
↑ from 14th in 2011
SHOPPING
12th
↑ from 15th in 2011
FOOD
11th
↑ from 30th in 2011
Canada improved its rank significantly among key
attributes for HERITAGE & CULTURE
2012 KEY HERITAGE & CULTURE ATTRIBUTES
ART & CULTURE
15th
↑ from 29th in 2011
AUTHENTICITY
12th
↑ from 34th in 2011
NATURAL BEAUTY
6th
↑ from 15th in 2011
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?