Post on 30-Oct-2014
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The State of Ohio’s Tourism Industry:
“Visitors are Traveling and Spending Again”
2012 Ohio Conference on Tourism
Wow!
Thank You!
Quick OverviewTourismOhio:• Since Last Year’s Conference
– Tourism Funding Model– Key Accomplishments– Our Current Budget– New Partnership Opportunities
Travel Trends:• Industry Vs. Economy
– Ohio Currents– National Currents & Outlook
Our Industry• $40 Billion in Total Revenues
• $2.7 Billion in Total State and Local Taxes Generated
• 443,000 FTE’s Supported by Tourism (7% of OH jobs)
Bottom Line: Tourism is a Revenue Generator for OH!
*2011
Say “hi” to:
Who Are We?• State’s Destination Marketing Organization
• Premier source of information for travelers and media about Ohio’s vibrant tourism experiences, attractions and economy.
If We Do Our Job
We enhance the economic health of Ohio by driving business to you, thus generating revenue for the state.
How We Do It (10.5 Staff+Agencies)
• Advertising • Main• Multicultural• International
• Public Relations• Tourism Information Services
• Buckeye Database• 1-800-BUCKEYE• DiscoverOhio.com• Social Media• Buckeye Fulfillment
Center• Research
Since We Last Met…
• Record R.O.I. = 14:1• Record Industry Partner Participation!• Innovation & Partnership• Online & Social Media Enhancements!• Mobile Tour – 3nd Year!• Bronze Anvil, Sabre, & Telly Awards!
How Do We Compete?• Surrounding states currently have an
average budget of $10 million each.
• Michigan’s Tourism MARKETING budget is $27 million. Office budget total is $32 million.
• We work hard and smart
• We partner with you, and non-traditional businesses
Before I Continue…Write This Down:
1. Go to DiscoverOhio.com/industry
2.Register for Buckeyeline
3.“Ohio Tourism Industry” FB Group
The Continued Basis of Our Approach:
• UPSELL! - “Too Much Fun for Just One Day”
• Identifiable Ohio – Differentiate• Through the eyes of our visitors/target
audiences• Retail Strategy using New and Trad. Media• …And the:
Focus Areas for Success
• Industry Partnerships:– Advertising Co-ops– PR– Web/Database– Telemarketing/Fulfillment– Multicultural– Social Media – Research– Non-Traditional Partnerships– Etc…etc…etc…
Tourism Division
New Opportunities for FY’13
• Our menu is bigger than ever!
• Did you grab a 2013 Partnership Book?!
• Most Opportunites are FREE!
• We will have more based upon trends and your needs!
The State of the Industry• Rebounding
Strength
• Resilience
• Recovery
• Release
Business Day
• After increasing 7.4% in 2010, Ohio visitor spending expanded another 6.5% in 2011, reaching $26.3 billion.
• More overnight stays along with higher prices pushed accommodations spending up 9.4% in 2011.
2011 Re-Cap: Continued growth in visitor spending
$24.5
$25.6
$23.0
$24.7
$26.3
$21
$22
$23
$24
$25
$26
$27
2007 2008 2009 2010 2011
-12%-10%-8%-6%-4%-2%0%2%4%6%8%10%
TOTAL % Change
Visitor spending US$ Billions
Source : Tourism Economics
Overnight and Day Markets Compared
2009 2010 2011 % ChangeTotal Visitors (millions) 172.45 180.06 181.48 0.8%
Overnight 34.27 35.71 37.39 4.7% Day 138.18 144.35 144.09 -0.2%
Total Spending (million $) 23,031 24,736 26,336 6.5%
Overnight 9,468 10,298 11,407 10.8%
Day 13,563 14,438 14,928 3.4%
Per Visitor Spending 134$ 137$ 145$ 5.6% Overnight 276$ 288$ 305$ 5.8%
Day 98$ 100$ 104$ 3.6%
Visits and Spend
SB 314 = Tourism
–Name Change: Office of TourismOhio
–Tourism Funding Model
–Tourism Advisory Board
Pilot Funding Model• Performance-based funding model
• Compare sales-tax receipts year over year
2013 benchmarked against 2012
• Tax receipts are based on NAICS Codes
Restaurants, Hotels, Rental Cars, etc.
TourismOhio Budget
• In growth years, TourismOhio will receive up to $10 million.
• Any increase in Tourism funding will not be realized until October 2013 for FY14 budget.
How Do We Plan?
• Track tax receipts throughout the fiscal year
• The OhioTourism Fund is Revolving
• Set aside a few million dollars each fiscal for zero-growth years
What Happens in Five Years?
• The pilot funding model terminates end of FY 2018.
• Pilot program to be evaluated and recommendations made as to whether to make the funding mechanism permanent.
• If it is recommend to make the funding model permanent, it could be recommended to establish TourismOhio as a private nonprofit corporation or a subsidiary corporation of JobsOhio.
Director Search
• Development and Tourism leadership involved
• Better to find the right candidate than to hurry
• Have interviewed strong candidates
Our Market
• 2011 Visitor Study Highlights
• Industry.DiscoverOhio.com
Current Word on the Street
• Occupancy is UP 6.1% in 2011 vs. 2009 YTD (+4.6% U.S.)
• ADR is UP 2.7% (+3.6% U.S.)
• RevPar UP 8.9% (+8.3% U.S.)
• Business Travel is Steadily Improving
• Leisure Holding Its Own in Volume After Soggy Start
• Incremental Visitor Spending is FINALLY going UP • BUT: Consumer Confidence and Gas Prices are Shaky!
Tourism and the National Economy*
*A special thanks to the US Travel Association and Tourism Economics for providing much of this data!
2001 – 2011… One for the books
But also a Decade of R’s…
Resilience Renewal Re-Birth
Recovery
Resourcefulness
Turning the corner…But when?
• Another “soft patch”• Weak housing market• Americans’ spending plans still on hold • Weak labor market has weakened again • Inflationary pressures still high in travel• Ongoing debt crisis• Threat of higher taxes
Consumer Confidence is on the rise
The Consumer Confidence Index is
currently at 70.3, up form 45.5 last year at this time.
90.0 is considered healthy
1985 = 100
Source: The Conference Board, September 2012
Overall Traveler Sentiment IndexTM saw an uptick in July
April’s overall Traveler Sentiment IndexTM of 93.5 represents not only a nearly ten point increase from April 2011’s index of 83.9, but also marks its highest level since April 2007 (96.2)
Source: MMGY/U.S. Travel Association, travelhorizonsTM, April 2012
US Travel Forecast
Younger Americans the Most Positive about Travel Traveler Sentiment Scores
Source: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011
Affordability of Travel Index… Regains some ground
Source: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011
March 2007 = 100
Gas price rise
But travel prices still outpacing inflation!
Source: U.S. Travel Association Travel Price Index
Percentage change through July 2011YTD TPI = +6.7%YTD CPI = +2.9%
Does not include various fees
Interest in Travel Remains Strong
Source: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011
Traveler Sentiment Scores
But affordability of travel remains elusive
Positive
Negative
Source: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011
Traveler Sentiment Scores
Deep discounts & deals
And “money available for travel” not back to pre-recession levels
Traveler Sentiment Scores
Positive
Negative
Source: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011
First Half 2011 Travel Performance…Pretty good!
DomesticVolume
DomesticLeisure Volume
Domestic BusinessVolume
2.6%2.8%
1.9%
DomesticSpending
7.8%Source: U.S. Travel Association and Tourism Economics
Leisure Travel Trends
Domestic Leisure Visitors…Exceeded the 2007 high last year
Source: U.S. Travel Association
Bah!
Millions of Person-Trips
56% of U.S. adults planning at least one leisure trip between
August and January7 million more travelers
Source: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011
Financial factors influencing leisure travel…
Most not really travel relatedFinancial Factor Influencing Future Leisure Travel
% AgreeJuly 2011
Price of gallon of gasoline 62%
Price of air travel 59
Meltdown of the U.S. economy 58
High level of credit card debt 57
Expectation of making less money 56
Expectation spouse/partner will lose job 55
High level of personal debt 55
Rising cost of healthcare 51
Size of the national debt 46Q: To what degree is each of the following financial issues currently affecting your leisure vacation plans over the next 12 months? (Somewhat to much less likely to travel)Source: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011
Reasons for taking more leisure trips…3 Rs -- Rest, Relax, Reconnect
• Reconnect with family/fiends (43%) • Relieve stress/need to relax (34%)
• Break from home/work routine (26%)
• Have put off traveling due to economy – feeling housebound (25%)
Q: Why are you planning on taking more leisure trips during the next 6 months?Source: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011
Other Leisure Travel Trends• The “Staycation” has been revived – Regional Travel!
• Balancing Effect with Long-Haul Travel
• Bargain-Hunting “New Consumer” sees your discount
rate as the beginning point of the haggle!
• Explosive adaptation of Smart Mobile and Tablet
technology redefines the marketplace…More are
booking via mobile!
• The Social Media ROI debate rages on, but you must be
there!
Outlook through January 2012• Still willing to travel, but making
adjustments in spending
• Still traveling close to home
• Overnight leisure trips shorter in
duration
• More day trips
• More long weekend getaways
• Plans can change, but…..Source: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011
Vacations/Getaways are Needed Now More than Ever!
Business Travelers…Not what it used to be
Incidence of Business Travel Down 14 Points Over Past 5 Years, but Stabilizing
Percent taking business trip in past year
Source: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011
508.7494.3
461.1
431.1
447.8
380
400
420
440
460
480
500
520
2006 2007 2008 2009 2010
Source: U.S. Travel Association
Millions of Person-Trips
Domestic business travel inches up…Well below 1998 record high
Ouch!
Business travel… The province of the young
Plan to take a business trip between August 2011 and January 2012
Source: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011
Lodging Trends
Hotel demand… Stronger than expected
Source: Smith Travel Research, September 2011
2010 2011
Percent change in room-nights sold over prior year
% change in RevPAR through August 2011 -
Getting better
Source: Smith Travel Research, August 2011
10.0% or more
Decrease
7.5% to 9.9%
5.0% to 7.4%
0.0% to 4.9%
9.2
10.4
8.85.8
6.1
STR Forecasts for 2011 and 2012ADR drives up RevPAR
Source: Smith Travel Research, July 2011
International Visitors…Welcome back!
• Spend more per trip ($4,000 per overseas visitor)• Stay longer (18 nights in U.S.)• $31.7 billion trade surplus• Stay in hotels (78%)• They enjoy seeing the America we take for granted
International arrivals to U.S. sets new record!
9 million more visitors than 2000
Source: Office of Travel and Tourism Industries
(in millions)
Forecasts Through 2013…Break out the Ouija boards!
Total domestic visitors…Modest growth
*ForecastSource: U.S. Travel Association; Tourism Economics
Domestic leisure visitors…More solid growth
*ForecastSource: U.S. Travel Association; Tourism Economics
In millions
Domestic business travel improves…But still well below 1998 record high
* Forecast as of May 11, 2011Source: U.S. Travel Association and Tourism Economics
International and Overseas arrivals continue strong as well
*ForecastSource: U.S. Travel Association; Tourism Economics
Summary…sustained, but slow growth expected in 2011…and 2012 and 2013
DomesticLeisureVolume
DomesticBusinessVolume
InternationalVisitors
InternationalSpending*
2.4%1.2%
5.8%
10.0%
DomesticSpending
7.3%
*Excluding international airfaresSources: U.S. Travel Association; Oxford Economics/Tourism Economics; U.S. Department of Commerce-Office of Travel and Tourism Industries
42 million “not sures”…Must be in the marketplace
Not Sure18%
42 Million
No Plans to Travel26%
60 Million
Q: Over the next 6 months, do you plan to take any leisure trips of at least 50 miles one way from home or that will include an overnight stay?Source: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011
Just a couple more thoughts before you can get ready for
tonight…
A Few Messaging Opportunities• VALUE!!!
• Authenticity
• Focus on “Re” - Connections
• Ease of Travel – Time
• Social Media – Be Strategic
• Show Your Mobility
• PACKAGE!!!
• INTEGRATE!!!
Tourism Division
Questions?
Tourism Division
Thank You!
Amir Eylon
Amir.Eylon@Development.ohio.gov
(614) 466-3704
DiscoverOhio.com/industry
(Buckeyeline!)
Tourism Division
Tourism Division