International Travel to the U.S.:Trends, Forecast and Tourism Export Promotion Programs and Services

Anastasia Xenias, PhDSenior International Trade Specialist and Global Travel & Tourism Team LeaderU.S. Commercial ServiceInternational Trade AdministrationU.S. Department of Commerce

Receptive Services Association of America, March 2012

“We Can’t Wait”

• “Every year, tens of millions of tourists from all over the world come and visit America. And the more folks who visit America, the more Americans we get back to work. We need to help businesses all across the country grow and create jobs; compete and win. That’s how we’re going to rebuild an economy where hard work pays off, where responsibility is rewarded, and where anyone can make it if they try,”

– President Obama January 19, 2012

• Executive Order: increase nonimmigrant visa processing capacity in China and Brazil by 40% in 2012; 80% of nonimmigrant visa applicants are interviewed within 3 weeks; increase efforts to expand the Visa Waiver Program and travel by nationals of Visa Waiver Program participants

Beyond the Travel Promotion Act (March 2010)…National Export Initiative (March 2010)

• Goal: Double exports over the next 5 years

• Creates Export Promotion Cabinet

• Focuses on three key areas:– 1. Expanding trade advocacy– 2. Improving access to credit

for small and medium-sized businesses

– 3. Continuing enforcement of international trade laws

Target Industry Sectors

Healthcare / Medical DevicesInfrastructureDefenseEnvironmental / EnergyTechnology IndustriesEducationTravel and Tourism

International Travel & Tourism to the U.S.

• Represents 7% of all exports for the U.S. • Largest services sector export –$134 billion or 25% of

services.• Third-largest merchandise/services export category.• Supported 1.2 million jobs.• International visitation represents 4% of travelers, but 17% of

traveler spending, payroll, employment and taxes.• U.S. leads the world in international visitor receipts (over 10%

of world total)• U.S. is second in world visitor arrivals (over 6% of world total,

second only to France)• U.S. welcomed 63 million international visitors in 2011*• Generated a trade surplus of $38 billion*

Sources: Department of Commerce, Office of Travel & Tourism Industries; Department of Commerce, Bureau of Economic Analysis;

U.S. Department Of CommerceInternational Trade Administration

Office of Travel and Tourism Industries

Washington, D.C.

Commercial Service151 overseas offices in 83 countries

105 U.S. Offices in all 50 states

http://www.tinet.ita/doc/gov

http://www.export.gov/industry/travel

http://trade.gov/cs/

Active Visit USA / Discover America Committees

U.S. Commercial Service

VisitUSA/Discover America Committees

Source:

Year/Year Change of Total Exports (%)January 2011 – January 2012

Total Monthly U.S. Travel and Tourism Exports (Receipts)January 2011 – January 2012 (in millions USD)

Source: Bureau of Economic Analysis

International Travelers to the U.S. by Region % change 2011/2010

Sources: Department of Commerce, Office of Tourism Industries; Department of Commerce, Bureau of Economic Analysis; Statistics Canada; Banco de Mexico.

International Travelers to the U.S. by Key Market total arrivals and % change 2011/2010

What to expect this year

Sources: Department of Commerce, Office of Tourism Industries; Department of Commerce, Bureau of Economic Analysis; Statistics Canada; Banco de Mexico.

Grand Total 84.8 million 51% 84851%Canada 26,432 47%

Mexico 19,742 49%

United Kingdom 4,719 21%

Japan 4,285 47%

Brazil 2,662 198%

China 2,341 346%Germany 2,273 35%Korea 2,105 171% France 1,566 30%Australia 1,288 78%India 1,226 123%

Long-Term Forecast – Top Future Markets

Visitor Arrivals Change

Origin 2015f 15/09

(Ranked by 2015) (000s) (%)

Sources: Department of Commerce, Office of Tourism Industries; Statistics Canada; Banco de Mexico -

Spending ($ billions)

CANADA

JAPAN CHINA U.K. BRAZIL MEXICO INDIA

2015f $23.7 $19.7 $16.1 $13.8 $13.6 $12.0 $8.0

Internet Usage for Travel By Region

REGIONPercentage using internet to gather

INFORMATION

  2009 2010

AFRICA 24% 29%

ASIA 39% 42%

CARIBBEAN 28% 34%

CENTRAL AMERICA 23% 32%

EASTERN EUROPE 45% 48%

EUROPE 49% 48%

MIDDLE EAST 37% 41%

OCEANIA 45% 48%

SOUTH AMERICA 31% 32%

WESTERN EUROPE 49% 48%Source: Department of Commerce, Office of Tourism Industries

Internet Usage for Travel (Sample Countries)

COUNTRYPercentage travelers using internet to

gather INFORMATION

  2009 2010

BRAZIL 33% 36%

CHINA 32% 32%

UNITED KINGDOM 48% 48%

JAPAN 46% 49%

GERMANY 51% 51%

LOWEST USAGE: INDIA 21% 23%

HIGHEST USAGE: RUSSIA 55% 58%

Source: Department of Commerce, Office of Tourism Industries

Internet Usage for Travel

Source: Department of Commerce, Office of Tourism Industries

The Bottom Line

• Partnerships with tour operators still crucial

• Travel to USA back to solid growth mode

– Total growth of 36% from 2010 through 2016;– Highest growth RATES from China (+274%), Brazil (+135%), Russia

(+131%), Australia (94%), Argentina (+70%), and Peru (+67%);

– Largest GROWTH from Canada (+6.7M), Mexico (+2.9M), China (+2.2M), Brazil (1.6M), U.K. (+914K), Australia (+849K), and Korea (+589).

– Travel Promotion Act of 2009.

– This is the Time to Promote Your Travel Product Internationally

Commercial Service Programs for Travel Industry

• Lists of Outbound Tour Operators

• Sales missions• Single Destination

Promotions• Market intelligence

– OTTI data– Commercial Service

market reports• Promotional events

– Catalog shows– Embassy events

• Media Outreach

• FAM Tours

• Delegations to U.S. Travel Shows

– International PowWow

– LaCumbre

– GoWest Summit

• Grants for travel export promotion

– National Tour Association

– U.S. Travel Association

– Capital Region

Global Travel & Tourism Team

Many more… visit www.export.gov/industry/travel

Webinars

• Keep Up with Emerging Markets and Industry Trends via Webinars

• The Global Travel & Tourism Team offers online webinars on key issues facing the travel industry and information on key markets.

• These webinars will feature industry experts and provide you with the opportunity to ask questions. We will be announcing the dates of these webinars, so check back here to register for these events. [standard fee: $50]

• Upcoming: April 3rd International Travel & Tourism Markets Focus on Japan

– Register at www.export.gov/industry/travel

Contact info

Anastasia Xenias, Ph.D.Senior International Trade Specialist and Global Travel & Tourism Team Leader

U.S. Department of CommerceInternational Trade AdministrationU.S. Commercial Service33 Whitehall Street, suite 22ANew York, NY 10004Tel: 212-809-2685Fax: 212-809-2687

Email: anastasia.xenias@trade.govwww.export.gov/industry/travel

thank you!

OTTI contacts

• Contacts:• Julie Heizer, Acting Director, OTTI, +1(202) 482-4904, or at:

julie.heizer@trade.gov • Ron Erdmann, Deputy Director, Research, OTTI, +1 (202) 482-

4554, or at: ron.erdmann@trade.gov • Richard Champley, Program Manager & Senior Analyst, +1

202.482.4753, richard.champley@trade.gov

http://tinet.ita.doc.gov

http://www.Export.gov/industry/travel