Canadian Tourism CommissionLes Clefs d’Or CanadaSeptember 14, 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.

CTC overview

Our visionInspire the world to explore Canada.

Our missionHarness Canada’s collective voice to grow export revenues.

Our valuesInnovation, Collaboration, Respect

� 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

� 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:

CTC business model

Traditional/core markets Emerging/transition markets

• UK • Brazil

• France • China

• Germany • India

• Australia • Mexico

• US (MC&IT, media) • South Korea

• Japan

Mexico

Brazil

UKFrance Germany

India

ChinaSouth Korea

Japan

Australia

US

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

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.

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

Larger competitive set

Source: UNWTO

RANK 1950 World

Share 1970 World

Share 1990 World

Share 2010 World

Share 1 USA

97%

Italy

75%

France

67%

France

56%

2 Canada Canada USA USA

3 Italy France Spain Spain

4 France Spain Italy China

5 Switzerland USA Hungary Italy

6 Ireland Austria Austria UK

7 Austria Germany UK Turkey

8 Spain Switzerland Mexico Germany

9 Germany Yugoslavia Germany Malaysia

10 UK UK Canada Mexico

11 Norway Hungary Switzerland Austria

12 Argentina Czech Greece Ukraine

13 Mexico Belgium Portugal Russia

14 Netherlands Bulgaria Malaysia Hong Kong

15 Denmark Romania Croatia Canada

Other 3% 25% 33% 44%

Total 25 million 166 million 703 million 935 million

Long-haul inbound travel

Source: Tourism Economics

Rank 1999 2009

1 US US

2 UK France

3 France China

4 Canada UK

5 China Italy

6 Germany Canada

7 Italy Germany

8 Spain Turkey

9 Hong Kong Malaysia

10 Mexico Hong Kong

Takeaway 1: Canada has what it takes to compete

WHICH COUNTRY WOULD YOU RECOMMEND TO VISIT THE MOST?

REPUTATION INSTITUTE COUNTRYREPSM RANKING 2010

Impact of export tourism

Sectors 2010 export receipts($ millions)

Motor vehicle manufacturing* 28,125

Food manufacturing* 19,936

Export tourism 14,806

Aerospace products and parts manufacturing* 11,217

Basic chemical manufacturing* 9,774

Financial services* 6,976

Plastic product manufacturing* 6,739

Pharmaceutical and medicine manufacturing* 6,171

Computer and information services* 4,873

Source: Statistics Canada * Denotes Industries in Global Commerce Strategy

How policy impacts tourism business

Impact of China granting Approved Destination Status to the US in 2009

Impact of US government dropping visa requirement for South Korean travellers in late 2008

Impact of implementation of new visa requirements for Mexican visitors in July 2009

Summary of Takeaway 1: Canada has what it takes to compete

� Canada is currently punching above its weight class.

� Canada has a tourism opportunity centered around global growth.

� Canada’s tourism industry is an industry of the future: no subsidies required.

� An opportunity to create new wealth and jobs in every community is within reach.

International travellers’ awareness

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

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

CTC is founded on principle of partnerships

In 2010, partnership contributions totalled $138.5 million:

• CTC-led marketing campaigns: $16.3 million

• Partner-led marketing campaigns: $40.7 million

• Parallel partnerships: $39.7 million

• In-kind partner contributions: $41.8 million

Moving consumers down the path-to-purchase

Brandbuilding

Tacticsconversion

Our marketing channels

� Direct-to-consumer advertising� Increase awareness of Canada as a destination

� Generate interest in travel to Canada

� Create a “vacation movie” in the minds of travellers

� Travel trade promotions� Work with our key accounts

� Train travel agents to sell Canada

Our marketing channels

� MC&IT� Meetings

� Conventions

� Incentive travel

� Media & public relations� Events, publications

� Media stories

� Social media

Strategic role of meetings & conventions

Banff

Ottawa

Vancouver

Winnipeg

LOCALS KNOW

Name: Explore Canada Like a Local

URL: www.explorelikealocal.com

URL: www.exlorelikealocal.com

Real-time

Dynamic

Traveller-to-Traveller

Inside information

Join us!

US Launch PR Programs / Partnerships

Lonely Planet

• Online traffic drivers

• Custom content – Robert Reid vlog

• Lonely Planet social media properties driving traffic to ECLAL

• Points of interest content for ECLAL in Spanish & German

• Contest featuring ECLAL

AMEX (Travel + Leisure, Food & Wine, Executive Travel, Departures)

• Contest featuring ECLAL, influencers and itineraries

• AMEX social media properties driving traffic to ECLAL

• Online, print and iPad media

Some Thought Starters for Les Clefs d’Or…

• Featured lists created by Les Clefs d'Or on Explore Canada Like a Local

• Les Clefs d’Or lists can be featured on the homepage or wherever else it's relevant

• We can badge/identify these lists as well to promote Les Clefs d’Or

• Les Clefs d’Or community can comment on spots that interest them as a 'featured' commenter

• Les Clefs d’Or endorsed itineraries featured in our marketing efforts and social media cultivation

US Launch Online Ads & iPad

Global Markets & Estimated Launch Timing

• US - Aug 11

• UK - Sept 6

• Germany - Sept 15

• France - Oct 1

• Australia - Nov 9

• Mexico - Dec 21

Summary

• CTC is the first NTO to launch a site & app with a robust geo-located, user-generated, itinerary-building tool that can take you from planning to experience.

• “The CTC led the way utilizing user-generated

content of travel experiences in its campaign work,

now they break ground again by placing Canada’s

travel brand in the hands of locals and travellers to

compel the world to visit Canada.”- Josh Fehr, Creative Director, Tribal DDB Vancouver

Summary

Brand Toolkit

� The Brand Toolkit will help get Canada’s tourism brand workingfor you.

� Inside the Brand Toolkit you'll find:

� Information on how we paint a picture with words to inspire travellers to visit Canada now.

� Ideas on how to incorporate the brand essence into your advertising and promotional materials, using clear, simple, evocative images.

� How we create images that best express and evoke what Canada offers travellers.

Explorer Quotient®: the art of segmentation

Experiences Toolkit

� The Experiences Toolkit helps turn tourism products into experiences travellers will keep talking about.

� Inside the Experiences Toolkit you'll find:

�Key information on turning your product into an experience that customers will keep talking about.

�Quick diagnostic tools to ensure your product is aligned with travellers’ expectations.

�Latest travel trends and research insights.

�Examples of successful practices of several tourism operators in Canada.

Signature Experiences Collection

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.

Currently 48 SEC members, including 8 from BC:• The Inside Passage Coastal Adventure - BC Ferries Vacations• Great Bear Rainforest - Bluewater Adventures• High Flying Summer Adventures - CMH Heli-Skiing & Summer Adventures• Granville Island Market Tour - Edible British Columbia• Eye of the Wind/Adrenaline Adventures - Grouse Mountain• Organic Winery and Bistro - Summerhill Pyramid Winery• Luxury in the Wilderness - Sonora Resort• Canadian Rockies Highlights - Rocky Mountaineer

� We are focused on marketing that generates business demand. And Canada has what it takes to compete!

� We work to provide a partnership framework for the Canada’s national tourism industry behind a strong tourism brand “Canada. Keep Exploring.”

� We provide tools to help SMEs compete in the international tourism marketplace.

� We greatly value our important relationship with Canada’s hotel industry.

� We look forward to continuing to work closely together to inspire the world to explore Canada!

To wrap up…

Thank you!

Michele McKenzieTwitter: @CTCCEO