MM - Annual Public Meeting - Oct. 3, 2011 - EN

CANADIAN TOURISM COMMISSIONMichele McKenzie, President & CEOAnnual Public Meeting – October 3, 2011

THE POWER OF TOURISM Growth of global arrivals:

• 25 million in 1950.• 935 million in 2010.• 1.6 billion by 2020.

In 2010, Canada’s tourism sector contributed:• $73.4 billion in revenues to the Canadian economy• $29.3 billion to Canada’s GDP• $20.1 billion in government taxation revenues.

Tourism marketing benefits other sectors, like trade and education.

Tourism generates enormous secondary benefits for the economy and the employment of a country.

INTERNATIONAL TOURIST ARRIVALS BY REGION (MILLION)

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Are we spending our money in all the right places?

Our goal: Grow tourism export revenues for Canada.

Our vision: Inspire the world to explore Canada.

Our mission: Harness Canada’s collective voice to grow export revenues.

Our values: Innovation, Collaboration, Respect

CTC OVERVIEW• Canada’s national tourism marketing organization (NTO)• Investing in 11 countries around the world• Headquartered in Vancouver with a regional hub in UK• Federal Crown corporation

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• Generate wealth for Canadians by stimulating demand for Canada’s visitor economy through effective tourism marketing and promotions supported by aligned market research.

OUR MANDATE

• Roles-based return on investment (ROI) model: target long-haul, high-spending consumers who tend to spend more and stay longer.

• Provide leadership with representation in each of our 11 key markets.

OUR BUSINESS MODEL

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OUR MARKETS

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CTC Does CTC Does NotGenerate international demand for Canada through innovative marketing.

Undertake activities that cannot be measured.

Create business to business sales & marketplace opportunities for Canadian business.

Support international trips without a firm business purpose.

Work with Provinces/Territories & private sector with ease on a commercial footing.

Grant to 3rd parties or provide subsidies to other levels of government.

Market Canada’s tourism brand and those experiences that best exemplify “Canada. Keep Exploring”.

Have vertical niche product campaigns to support one sub-sector over another.

Provide leadership in Canada and globally with cutting edge marketing research. Pertinent business information for Canadian business.

Spend time or resources on research or other activities that do not support demand generation. CTC is not a think tank.

CTC FUNDING: 2001-2012

Tourism marketing organization 2010 base appropriations ($CDN)*

Tourism India $248.5 million

Tourism Ireland $211.3 million

Tourism Australia $147.1 million

Tourism Malaysia $128.2 million

Las Vegas Convention & Visitors Authority $119.7 million

South Africa Tourism $118.1 million

Atout France $111.5 million

Korea Tourism Organization $94.2 million

Tourism New Zealand $88.5 million

Brazil Ministry of Tourism $83.9 million

The Bahamas Ministry of Tourism $81.8 million

Switzerland Tourism $80.0 million

Canadian Tourism Commission $77.4 million

Hawaii Tourism Authority $73.9 million

California Travel & Tourism Commission $51.5 million

VisitBritain $48.6 million

NTO COMPETITIVE FUNDING LEVELS

ROLE OF DESTINATION MARKETERS IS TRANSFORMING

• Emerging economies are investing heavily in tourism marketing (e.g. India, Turkey).

• Internationally, progressive NTOs are re-vamping their models to be more efficient (e.g. VisitBritain, Tourism New Zealand, Tourism Australia).

• Canadian marketing partners (i.e. PMOs and DMOs) are increasingly well-funded.

• New US Corporation for Travel Promotion is a public-private partnership with the mission of promoting increased international travel to the US.

INTERNATIONAL TRAVELLERS’ AWARENESS

• Travellers are more aware of countries rather than regions or attractions.

Source: Global Tourism Watch, Unaided Destination Awareness (Harris/Decima 2010)

Canadian jobs:594,500

(-1.1% from 2009)

Federal tax revenues:

$9.4 billion(+5.8% from 2009)

CANADA’S TOURISM INDUSTRY PERFORMANCE IN 2010

Foreign spending: $14.9 billion(+5.7% from 2009)

Foreign spending: $14.9 billion(+5.7% from 2009)

Domestic spending: $58.5 billion(+6.9% from 2009)

Domestic spending: $58.5 billion(+6.9% from 2009)

Total tourism spending:

$73.4 billion(+6.7% from 2009)

CTC’s attributablecontribution:$1.9 billion

CTC’s attributablecontribution:

16,569

CTC’s attributablecontribution:

$244.2 million

DOMESTIC VS. OVERSEAS* TRAVELLERS’ SPENDING PER TRIP

Domestic travellers in Canada$305/trip

*Overseas = Travellers from all CTC key markets, excluding the US.Note: Based on average for 2010.

Overseas* travellers in Canada$1,400/trip

HIGHLIGHTS OVER THE LAST YEAR

November 5, 2010:CANADA NAMED #1 COUNTRY BRAND

February 10, 2011:ANNIVERSARY OF THE 2010 WINTER GAMES

February 22, 2011:LAUNCH OF CANADA’S FIRST CONSUMER-FOCUSED AD CAMPAIGN IN CHINA

May 15-18, 2011:RENDEZ-VOUS CANADA 2011 IN QUÉBEC CITY

May 15, 2011:OPENING OF “SIGNATURE EXPERIENCES COLLECTION” APPLICATION PROCESS

What is a Signature Experience?An immersive, hands-on experiential offering that is

aligned with Canada’s tourism brand and is unique and differentiated, that engages local people and showcases

special places.

June 15, 2011:INAUGURAL FLIGHT OF CHINA SOUTHERN AIRLINES

June 30 – July 8, 2011:DUKE AND DUCHESS OF CAMBRIDGE ROYAL VISIT TO CANADA

July 10, 2011:ANNOUNCEMENT OF $5 MILLION TO PROMOTE CENTENNIAL OF CALGARY STAMPEDE IN 2012

July 11, 2011:LAUNCH OF THE INAUGURAL “SIGNATURE EXPERIENCES COLLECTION”

August-September 2011:LAUNCH OF THE “EXPLORE CANADA LIKE A LOCAL” WEBSITE

September 27, 2011:REPUTATION INSTITUTE NAMES CANADA THE MOST REPUTABLE COUNTRY IN THE WORLD

MIXED RESULTS YEAR-TO-DATE

JANUARY-JULY 2011

YEAR-TO-DATE 2011

US total 6,531 -1.7%UK 381 -5.2%France 248 +7.2%Germany 168 -6.0%Japan 104 -15.8%Australia 140 +5.8%China 128 +21.9%South Korea 92 -7.0%India 83 +6.0%Mexico 82 +6.2%Brazil 50 +9.9%Total key markets 8,007 -1.4%Total international markets 9,015 -1.0%

ESTIMATED OVERNIGHT VISITS BY CTC MARKET (000s)

Note: Statistics Canada preliminary estimates. Source: Statistics Canada, International Travel Survey.

LOOKING FORWARD

OUR STRATEGY FOR THE NEXT YEAR• Focusing on generating tourism

demand and export revenues.

• Driving results for Canadian tourism industry and SMEs who create jobs.

• Focusing on innovation and alignment.

• Leveraging Canada’s strong brand.

• Seeking competitive opportunities.

Michele McKenzieTwitter: @CTCCEO