CTC 101 – Looking forward Michele McKenzie, President and CEO, Canadian Tourism Commission,

Ted Rogers School of Hospitality and Tourism Management, February 5, 2013

Tourism presents

unprecedented

opportunity

1.8

bill

ion

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

Source: Tourism Towards 2030 / Global Overview, UNWTO

Source: UNWTO

By 2015, arrivals to

emerging economies will

surpass those of advanced

By 2030, emerging

economies will surpass

1 billion arrivals

Emerging economies will

add on average 30 million

arrivals a year

0

20

40

60

80

100

120

140

160

180

200

2005 2006 2007 2008 2009 2010 2011

Ove

rnig

ht

Tri

ps (

000

's)

Overnight trips to Canada Index 2005=100

Core (UK, DE, FR)

Emerging (CH, BZ, IN)

Transition (JP, MX, SK)

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

What we’ve learned

Since the 1940s…

We relied on three calling cards….

MOOSE MOUNTAINS & MOUNTIES

…and nothing changed in 60 years

2003

1940s

Needed a new frame of reference to make everything that potential travellers believe to be true about Canada more interesting.

A Northern country

Cold

Pristine

Natural

Moutains

Multicultural

Clean

Relaxation

Safety Vast

Nature

Inclusiveness

Tolerance

Peace,

Order

Good

Governance Peacemaker TO

DA

Y

Top of Mind Attribute Benefit Territory Value Role

And we wanted to find something that would make us stand out from the rest.

Desk Research

Hypotheses

Stakeholder Interviews

Field Research

& Industry

Consultations

Positioning Refinement

Field Research

Brand Articulation

Marketing Plan Research, Research, Research…

Top of Mind Attribute Benefit Territory Value Role

A northern

country

Cold, pristine,

natural,

mountains,

Mounties,

multicultural

clean

Relaxation /

safety

Vast

Nature

Inclusiveness,

tolerance,

peace, order,

good

government

TO

DA

Y

TO

MO

RR

OW

?

Peacemaker

A catalyst Beauty,

Freedom,

Compassion,

Creativity, Lack

of Artifice

A life less

ordinary

Intimate,

Modern,

Evocative,

Upbeat,

Clean

Extra-ordinary

Stories

Intrigue

Connects the curious traveller with everything rewarding about a vacation in Canada —stunning geography, diverse culture and progressive society— and attaches that to the idea of exploration, the fundamental joy of travel.

Canada. Keep Exploring

The new brand launched in 2006….

A new look and feel

Brand Canada

22

What we continue to

learn and apply

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

Bringing Canada’s

Unique Selling

Propositions to life through the

Signature

Experiences

Collection

SOCIAL MEDIA

Platforms for real

travellers to provide us

that powerful ‘advocacy’

Only

20% of Canada’s customers

make it to the point of

imaging themselves in

Canada.

Purchase decisions are vulnerable to change – even at Point of Purchase.

A business model

for success

58% of the decision to visit Canada is driven by the tourism brand*

Marketing helps drive visitation

* Interbrand study

32

A strong national brand is critical

administered by Harris Decima.

We focus on markets of highest ROI where Canada’s brand leads

34

2011

FORMAL INFORMAL

VS

Transition

keepexploring.canada.travel new consumer site – inspiration and information for the traveller

Business Development

Visitor Entry Air Service

are an essential ingredient to success

89% Partner

satisfaction

0.8 : 1

partnership ratio

(target is 0.6)

Challenges exist

Brand USA

Brazil

Australia

Britain

43

Competition is fierce

Bolder Integrated

Competitive Tourism Policy

• UK announcing 10 M Pound Sterling investment in China & 150 new visa officers

• Australia linking Air Passenger Movement charge to increased marketing in Asia

45

* CTC research † Budget for 2012-2013 ‡ Budget for 2013 § Budget for 2010

Tourism Marketing Budgets of Select Countries*

46

And we are being severely outpaced in our marketing investments

$61

$73

$75

$76

$79

$84

$88

$112

$134

$164

$168

$171

$222

Canada‡

Brazil§

Switzerland§

Ireland‡

New Zealand†

South Korea§

UK†

France†

Malaysia†

Australia†

South Africa†

Mexico†

India†

$58M by 2014

Our world is shrinking…

Full Market

Withdrawal

Active

Market

Lemonade

Lemons to

Brand USA

LEVERAGE OUR COMPETITOR’S MARKET

MUSCLE

US is already the gateway to Canada for all our markets.

Canada US

66% Fall off

We have big consideration hurdles.

Source: P2P Research

Barriers: Distance. Cost. Understanding

+Canada… …in reaction to Brand USA, promoting the dual-nation vacation

Greater

Recognition of

Link Between

Tourism

Promotion &

Trade Growth

Nation Brand

Tourism

Exports

Governance

Investment and

Immigration

Culture and Heritage

People

Source: The Nation Brand Hexagon, Simon Anholt, 2000

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

2017 YOUTH STRATEGY

35 MILLION DIRECTORS

Consumer site: Canada.travel

Corporate site: corporate.canada.travel

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