USA Tourism Trends & Statistics

April 2013

Did You Know?

In US…the travel and tourism industry generates nearly $1.3 trillion in economic output each year?... supports more than 8.2 million jobs?... accounts for 24% of services exports and 8% of all exports?

2009:A Difficult Year

• Inbound Passenger fare receipts* 16 % decline ($26.4 billion) Travel receipts** 15% decline ($93.9 billion) Total International visitor spend 15% decline ($21.0 billion)

• Outbound 3% decline; Spending down 12 %

2010:Rise In Tourism

• Inbound Passenger fare receipts More than 18 % rise ($30.9 billion) Travel receipts $103.5 billion (nearly 10% increase) Total International visitor spend More than $134 billion

• Outbound 2% decline; Spending up 4%

2011:Record In Receipts

• Inbound Passenger fare receipts More than 18 % rise ($36.6 billion) Travel receipts More than 12% rise ($116.1 billion) Total International visitor spend 14% rise ($152.7 billion)

• Outbound 3% decline Increase in travel from non-traditional states Increase in women travel

Travel & Tourism Contribution, 2011

• 2.7% of GDP• 7.5 million jobs - 5.36 million direct; 2.15 million indirect - 1.2 million total jobs supported by international travellers• $1.4 trillion in travel & tourism total sales - $814 billion direct; $555 billion indirect

Market Share

• 6.4% of world travelers • 11.3% of world traveler spending

• Advanced economies losing market share of global arrivals to emerging economies, especially China , Hong Kong, Malaysia, and Thailand.

Busiest Airports, Aircraft Movements

Rank Airport City Aircraft Movements 1 Atlanta GA,US 930250 2 Chicago IL,US 878108 3 Dallas/Fortworth TX, US 650124 4 Denver Co, US 612557 5 Los Angeles, CA, US 605480 6 Beijing, CN 557167 7 Charlotte NC,US 552093 8 Las Vegas NV, US 527739 9 Houston TX, US 51024210 Paris, FR 497763

8 of World’s Top Ten Busiest Airports are in US

Busiest Airports, Passenger Traffic

Rank Airport City Passengers

1 Atlanta GA,US 95462867 2 Beijing, CN 81929359 3 London, GB 70037417 4 Tokyo, JP 66795178 5 Chicago IL,US 66633503 6 Los Angeles, CA, US 63688121 7 Paris, FR 61611934 8 Dallas/Fortworth TX, US 58591842 9 Jakarta, ID 5777276210 Dubai, AE 57684550

4 of World’s Top Ten Busiest Airports are in US

Low Cost Carrier Penetration• Highest in the traditional European and North American markets. • Europe has the highest concentration - 38% of total air travel in 2012. • The South West Pacific and North America regions also have significant LCC penetration, with 37% and 30% respectively.

Source: Amadeus

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%38.0%

36.6%

30.2%

24.9%

18.6%

13.5%

9.9%

LCC share of traffic 2012

Top Hotel Groups

Rank Groups Hotels Rooms2013 2013 2013

1 IHG GB 4602 6759822 Hilton Hotels USA 3992 6523783 Marriott International USA 3672 6387934 Wyndham Hotel Group USA 7342 6274375 Choice USA 6198 4970236 Accor FRA 3515 4501997 Starwood Hotels & Resorts USA 1121 3280558 Best Western USA 4024 3116119 Home Inns CHI 1772 21407010 Carlson Rezidor Hotel Group USA 1077 166245

Source: MKG Hospitality

7 of World’s Top 10 Hotel Groups are in US

Top Hotel Brands

Rank Brands Group 2013

1. Holiday Inn + Hi Express IHG GB2. Best Western Best Western USA3. Marriott Hotels Resorts Marriott International USA4. Comfort Inn & Suites Choice Hotels International USA5. Hilton Hotels & Resorts Hilton Worldwide USA 6. Hampton Inn by Hilton Hilton Worldwide USA 7. Ibis (Megabrand*) Accor FRA8. Home Inns Home Inns CHI9. Sheraton Hotels & Resorts Starwood Hotels USA 10. Days Inn of America Wyndham Hotel Group USA

*Ibis Hotels, Etap Hotel, All SeasonsSource: MKG Hospitality

7 of World’s Top 10 Hotel Brands are in US

US Outbound

Outbound: 2007- 2011

Chart Title

• Outbound market was down 3% in 2011

• Totaled 58.7 mn

• Travel to overseas regions (excluding Canada and Mexico) declined 5 %.

2007

2008

2009

2010

2011

56

57

58

59

60

61

62

63

64

65

64 64

61.460.3

58.7

Outbound(in millions)Polynomial (Outbound(in millions))

Top Outbound Destinations• Most of the top destinations have witnessed a decline in US visitor numbers.• UK, France have had marginal increases in US arrivals, compared to 2010.• Of the top 15, India (+23%) and Aruba(+20%) witnessed highest growth in US arrivals.

2011 Country 2011 ChangeRank (000) 1 Mexico 20,084 0% 2 Canada 11,595 -1% 3 United Kingdom 2,405 2% 4 France 1,756 1% 5 Italy 1,702 -2% 6 Dominican Rep - na 7 Germany 1,594 -8% 8 Jamaica 1,486 0% 9 China 1,108 -12%10 Spain 1,081 12%11 India 946 23%12 Costa Rica 757 na13 Hong Kong 676 -5%14 Netherlands 649 -5%14 Israel 649 -5%14 Aruba 649 20%

Top US Airports For Outbound

• John F Kennedy airport of New York tops the list.• New York (JFK), Miami(MIA), Atlanta(ATL), Newark (EWR), Los Angeles (LAX) and Chicago (ORD) accounted for almost 60% of U.S. departures

2011 Airport Overseas* Market Rank Share

1 New York(JFK) 4,665,776 17.3%2 Miami(MIA) 2,828,430 10.5%3 Atlanta(ATL) 2,338,847 8.7%4 Newark(EWR) 2,210,502 8.2%5 Los Angeles(LAX) 2,019,626 7.5%6 Chicago (ORD) 1,853,990 6.9%7 Washington Dulles (IAD) 1,505,135 5.6%8 San Francisco (SFO) 1,330,702 4.9%9 Houston(IAH) 1,202,064 4.4%10 Philadephia (PHL) 920,917 3.4%

* Excludes Canada and Mexico

Top Source Regions

27%

23%

13%

8%

8%

Share

Middle AtlanticSouth AtlanticPacific East North CentralWest South Central

Top source region was the Middle Atlantic States:New York, New Jersey and Pennsylvania (27%)

Modes Of Inter - city Transportation

Top modes of inter-city transportation used between destinations were:Airline : 33 % Railroad: 16 %Bus:14%

Top modes of intra-city transit were :Taxicab/limo : 41%Subway/tram/bus : 18%

Top Leisure Activities• Dining in restaurants • Shopping• Visiting historical places • Visiting small towns and villages • Sightseeing in cities• Touring the countryside • Visiting cultural heritage sites.

Spending Abroad

• Spending by US residents travelling abroad: $109.8 billion; up 7%

• Spending within foreign countries: $78.7 billion, up 3 %.

• Spending on transportation, via foreign carriers: $31.1 billion, up 5%.

• Top countries for U.S. spending:

Mexico ($9.3 bn) The United Kingdom ($8.7 bn) Canada ($7.7 bn) Germany ($5.6 bn) Japan ($5.0 bn)

Profile Of Overseas Travellers

• Advance trip decision time: 95 days, in 2011

• Airline reservation time: 63 days, in 2011

• Pre paid package usage: grew to 13% of US travellers in 2011.

• Percentage visiting one destination: 65% in 2011.

• Percentage visiting three or more destinations:16% in 2011.

• Percentage on their first international trip: 7%, up one point from 2010.

• The average length of trip (number of nights) outside US: increased to 19.6 nights in 2010, up one night.

• Average number of international trips taken: 2.4, same as in 2010.

US Inbound

Top 10 Source Countries, 2011

Canada 21.3 million Mexico 13.5 million U.K. 3.8 million Japan 3.3 million Germany 1.8 million Brazil 1.5 million France 1.5 million S. Korea 1.2 million China 1.1 million Australia 1.0 million

Highest Increase in arrivals was from China (+36%), Brazil (+ 26%) and Australia (+15%)

Top 10 Cities Of North America By International Visitor Spend, 2012

19.4

12.5

8.87.0

6.9

4.74.3

4.03.2

3.0

Visitor Spend(US$ Billion)

New YorkLos AngelesMiamiChicagoSan FranciscoTorontoAtlantaWashingtonHoustonVancouver

• New York Leads (US$19.4 bn)

• Apart from Toronto and Vancouver, all the others are US cities.

Source: MasterCard Wordwide Insights

Top 10 Spenders, 2011

Canada(+15%)

$24.0 billion

Japan(+2%)

$14.8 billion

United Kingdom(+6%)

$12.0 billion

Mexico(+6%)

$9.2 billion

Brazil(+36%)

$8.5 billion

Top 10 Spenders, 2011

China (+47%)

$7.7 billion

Germany (+12%)

$6.3 billion

France (+18%)

$5.0 billion

Australia (+22%)

$5.0 billion

India (+10%)

$4.4 billion

Travel Trends

The Americas: Most ‘Open’

• Average 31% of the world’s population do not need a Visa to visit Americas.

• 8.0% could obtain a Visa on arrival.

• 1.0% an eVisa.

(UNWTO, 28 January 2013)

Outbound, Long Haul Increases

North American outbound travel increased by 3%

• Long haul travel grows by 6%.

• The US outbound market expected

to stabilise in 2013.

(World Travel Monitor)

Likely To Cross New Borders

With improved diplomatic relations, American Holiday-makers likely to visit North Korea, Cuba, Myanmar.

(WTM Global Trends Report, 2012)

Rise in Family Travel

83% of survey respondents plan to take at least one vacation with family members in 2011, up 79%. (TripAdvisor)

37% plan to take a multi-generational family trip in 2011. (Hotelmarketing.com, 2011)

Women Travellers Increase

• Females comprised 51% of US travellers; 39% in 2000.

• Up from 2010• Averaged 44.2 years

The Next Generation Travellers

• Generation born between 1980 and 1999

• Known as Gen Y, The Millenials, Gen Next.

• Population: 76mn Baby Boomers vs 79 mn Millenials now

• By 2030: 58mn Baby Boomers vs 78 mn Millenials

The Millenials

The Millenials - Profile

• Instant Service & Flexibility • Need real time information• Shorter booking window of 75

days to 93 days• Could prefer hostels with a

clean bed, hot shower and Wifi

• Looks for that “something extra” in a hotel

• Demand to be integrated with authentic local experience

• Wish to promote social responsibility

• Lovers of pod hotel concept – limited room size, unique luxury design and high-tech gadget features.

• Peer Review – a powerful tool, social creatures online and offline

Online Trends

Online Population

• Total Online Population(000's),2012: 245,203 (78.1%)

• US Internet Users - 2010: 221.0 million (71.2%)- 2011: 229.2 million (73.2%)- 2012: 236.9 million (74.9%)- 2013: 244.1 million (76.5%)- 2014: 250.7 million (77.8%)

2010

2011

2012

2013

2014

66.00%

68.00%

70.00%

72.00%

74.00%

76.00%

78.00%

80.00%

71.20%

73.20%

74.90%

76.50%

77.80%

Internet Users

Top OTAs

31.6%

17.3%12.9%

9.2%

7.6%

6.9%2.3% 1.4% 1.1%0.6%

Share of Page Views

Expedia Inc

Priceline.com Inc

Orbitz Worldwide

Fareportal Media Group

Travelocity

Kayak.com Network

BookingBuddy Sites

CheapCaribbean.com

BookIt.com

AppleVacations.com

Internet, Leading Travel Planning Source

Internet

Family, friends

•

Information brochures

•

Magazine

TV

• Internet 85% among personal travellers 78% among business travellers

• Family, friends, or colleagues 60% / 38%

• Information brochures 32% / 28%

• Magazines 24% / 25%

• TV 22% / 26%

Source: Google Study

Smart Phone Penetration

• Gen Z (18-23): 95% have mobile phone

64% have smartphone

• Gen Y Millennials (24-32): 97% ; 72%

• Gen X (33-46): 95% ; 61%

• Younger boomers (47-56) 92% ; 39%

• Older boomers (57-67): 89% ; 28%

• Golden generation (68-88): 85% ; 16%

Increase In Travel Bookings By Smartphones• Travel bookings made through mobiles to reach $25

Billion by 2014 • Mobile revenue will be 18% of the online market and 8%

of the total travel market.• In 2012, 22% of the total travel bookings/purchases are

from mobile websites, 12% from native apps and the rest from non-mobile sources.

Forecast, Outbound• Outbound market expected to stabilise in 2013 after

declining in 2012• IPK forecasts zero growth for US outbound travel next year. • The key trend in the North American outbound market is

more travel within the region

Source: IPK International

Forecast, Inbound• Inbound forecast to grow over the period, 2011 – 2017• From the Caribbean (+3%) , Asia (+64%), South America (+60 %), Oceania (+41%). • Countries with the largest total growth percentages: China (+259%), Brazil (+83%), Argentina (+67%), South Korea (+51 %), India (+47%), Australia (+46%), Venezuela (+45%). • North America world region will account for largest

proportion of the total visitor growth of nearly 18 million visitors (42%).

References• U.S. Department of Commerce, International Trade

Administration, Manufacturing and Services • Office of Travel and Tourism Industries • U.S. Department of Commerce, Bureau of Economic

Analysis• Statistics Canada• Banco de Mexico• U.N. World Tourism Organization• MKG Hospitality• Courtesy for images www.123rf.com;, Wikipedia, www.sxc.hu,

www.telegraph.co.uk, www.womenbizlife.com

DisclaimerThe report is based on the information from the published sources and References mentioned and inferences drawn are from them. Stark Tourism Associates and its parent organization, The Stark Group and the Group Companies - Stark Communications, Stark Expo, Stark World Publications are not responsible for errors/omissions that could have crept in knowingly or unwittingly.