International Visitors - VERMONT TOURISM SUMMITWHY TOURISM MATTERS Source: UNWTO Tourism Highlights,...

VERMONT TOURISM SUMMITInternational Visitors

Vermont Tourism Summit April 13-14, 2016 Killington Vermont

The right data – relevant KPI’s

“Not everything that can be counted counts, and not everything that counts can be measured”

- Albert Einstein

Strategic Market Analysis

- Identify Opportunity- Understand Competitive Position- Analyze Strengths & Weaknesses- Strategic Recommendations for Growth

Consumer (Visitor)

Country specific

Biannual

Annual

Trade

Country specific

Biannual

Annual

Passenger

Country specific

Biannual

Annual

Annual Visitor Analysis: Custom Strategic SupportU.S. Inbound Travel Monitor: Projected visits and competitive situationTravel Trade Barometer: Product demand, bookings, projected bookings

Travel Market Insights Inc.

2Vermont Tourism Summit April 2016

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International Visitors to New England

Vermont Tourism Summit April 2016

World Tourism Arrivals & Receipts

1950-2014

Source: U.N. World Tourism Organization, April 2015.

2014Arrivals1.145 B

Receipts$1.25 T



30%OF SERVICE

EXPORTS

6%OF WORLD EXPORTS

US$1.5

TRILLION IN

EXPORTS

1/11 JOBS

(direct, indirect, and induced)

9% GDP

(direct, indirect, and induced)

WHY TOURISM MATTERS

Source: UNWTO Tourism Highlights, 2015 Edition

1.8 Billion International Tourists Forecast for 2030

The Rise of the Global Middle ClassLinda Yue, Chief business correspondent BBC June 2013


Resilient Growth

(P) Preliminary, subject to revisions.Sources: Department of Commerce, National Travel and Tourism Office; Bureau of Economic Analysis; Statistics Canada; Banco de Mexico.

7Map Design by Jeff Quire

International Arrivals increased 36% from

2009 to 2014

Visitor Spending (exports) increased

51% since 2009


International Travel Share of Total U.S. Travel

Note: Subject to revisions.Sources: Department of Commerce, National Travel and Tourism Office; Bureau of Economic Analysis; Statistics Canada; Banco de Mexico.

Bureau of Economic Analysis demand components

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18% of all Travel Spend is International


Improving Shoulder Season


6,887,934

8,898,28710,134,942

8,497,853

1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER

Overseas Visitors to USA 2014

531,859 521,538560,008

650,460

1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER

Brazilian Travel to USA 2014

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Sources: Travel Market Insights, DNE custom SIAT data; NTTO; Statistics Canada.

2014 New England Total Overnight Visits = 5.04 Million

Canada = 61%

Overseas = 38%

Mexico = 1%

Note: Canadian visits are cumulative which includes multiple visits by one traveler to more than one state.


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2014 New England Visitor Nights

Sources: Travel Market Insights; NTTO; Statistics Canada.

Average Nights Spent In New

England:

Overseas = 12.7

Canada = 3.6

Overseas visitors spent 3.5 times longer in New England than Canadian visitors in 2014.


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2014 New England Total Spend by Overnight Visitors

Sources: Travel Market Insights; DNE custom SIAT data, NTTO; Statistics Canada.

$1,857,704,500

$1,203,415,400

Overseas Visitor Spend

Canada Visitor Spend

2014 New England Spend by Overnight Visitors

Overseas visitors spent 1.5 times more than Canadian visitors in 2014.


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• Annual Report

• Initiated in 2012

• Focused on New England

• In-depth Metrics by Top Countries


Record Overseas Visitor ArrivalsUp 48% Since 2002


0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0

Detroit, MI

San Francisco,CA

Washington, DC

Chicago, IL

Los Angeles, CA

Miami, FL

Newark, NJ

New York, NY

Boston, MA

2.2

2.5

3.0

4.0

4.2

4.3

7.8

28.9

31.5

PORT OF ENTRY OF OVERSEAS VISITORSOVERSEAS VISITORS TO NEW ENGLAND

2014

Source: Travel Market Insights, Survey of International Air Travelers to the United States - 2014

Percent


Converting Passengers to Visitors

• 90% of 2014 passengers officially entering Boston Logan International Airport visited New England.

• Growth in air routes into Boston Logan International Airport equates to more visitors throughout New England.


Boston Int’l Routes Added & Retained Since 2006

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BOS Int'l Routes Added & Retained Since 2006

BOS Route Start 1 Cologne Jun'16 2 Dusseldorf May'16 3 Manchester May'16 4 Oslo May'16 5 Copenhagen Mar'16 6 London-Gatwick Mar'16 7 Doha Mar'16 8 Fort de France Dec'15 9 Pointe a Pitre Dec'15 10 Barbados Nov'15 11 Hong Kong May'15 12 Mexico City Jun'15

13 Tel Aviv Jun'15 14 Shanghai Jun'15 15 Port au Prince Jun'15 16 Dubai Mar'14 17 Istanbul May'14 18 Beijing Jun'14 19 Liberia, CR Nov'14 20 Puerto Plata Nov'14 21 St Lucia Nov'14 22 Panama City, Panama Jul'13 23 Tokyo Apr'12

24 Grand Cayman Nov'12 25 Santiago, DR Jun'11 26 St. Maarten Feb'09 27 Toronto-City Ctr Sep'09 28 Dublin Mar'07 29 Madrid May'07 30 Punta Cana Jan'06 31 Lisbon Jun'06 32 Terceira Jun'06

• 32 International Routes

• 1.1 Million Non-U.S. Citizen Passenger Arrivals in 2014

• 2015 Non-U.S. Citizen Passenger Arrivals increased 9%

• New routes being added in 2016


Counting Visitors To, Within,& Throughout the USA

Understanding NE competitive position


0.0

0.5

1.0

1.5

2.0

2.5

3.0

1.5

2.4

NUMBER OF STATES VISITEDOVERSEAS VISITORS TO NEW ENGLAND / U.S.

2014

U.S. Visitors New England Visitors

Ave. Number of States Visited


Percent of visitors visiting only ONE STATE:

U.S. Visitors = 73%

New England Visitors = 31%


0.0

10.0

20.0

30.0

40.0

50.0

60.0

Vacation Friend/Relative Business Convention Study Other

58.2

17.7

11.7

6.6

4.4

0.9

41.5

22.2

15.0

9.3 9.7

1.6

MAIN PURPOSE OF U.S. TRIPOVERSEAS VISITORS TO NEW ENGLAND / U.S.

2014

U.S. Visitors

New EnglandVisitors


Percent


Leisure Visitor Potential

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

Yes No

23.8

76.2

22.0

78.0

FIRST TRIP BY AIR TO THE U.S.OVERSEAS VISITORS TO NEW ENGLAND / U.S.

2014

U.S. Visitors

New EnglandVisitors


Percent

21Discover New England September 2015

Discover New England 21st Annual Tourism Summit April 2016

78.0%

89.5%

87.1%

86.9%

86.3%

84.5%

83.4%

83.1%

76.2%

72.7%

68.9%

47.1%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%

OVERSEAS

UK

FRANCE

SCANDINAVIA

UK LEISURE

GERMANY

GERMANY LEISURE

JAPAN

BRAZIL

ITALY

AUSTRALIA

CHINA

Percent of Repeat Visitors to New England

22Discover New England 21st Annual Tourism Summit April 2016

Information Sources

0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0

Other

Tour Operator/Travel Club

Nat'l/State/City Travel Ofc.

Travel Guide

Corporate Travel Department

Travel Agency Office

Personal Recommendation

Online Travel Agency

Airline

5.5

8.4

9.7

12.5

12.1

22.7

25.3

32.2

43.5

5.0

5.8

8.2

12.2

15.8

19.8

25.7

31.7

47.4

TRAVEL INFORMATION SOURCES*OVERSEAS VISITORS TO NEW ENGLAND / U.S.

2014

New EnglandVisitors

U.S. Visitors

Source: Travel Market Insights, Survey of International Air Travelers to the United States - 2014* = multiple response

Percent


Cumulative Comparative Ranking - CCR


Product Demand Assessment IndexIndex Rank for Country to NE vs. Country to USA

UK to New England Index Rank

Snow Sports 1

Historical Locations 2

Small Towns/Countryside 3

Art Galleries/Museums 4

Camping/Hiking 5

Guided Tour(s) 6

Experience Fine Dining 7

Cultural/Ethnic Heritage Sights 8

Environmental/Eco. Excursions 9

National Parks/Monuments 10

Sporting Event 11

Sightseeing 12

Shopping 13

Water Sports 14

Golfing/Tennis 15

Concert/Play/Musical 16

Amusement/Theme Parks 17

Hunting/Fishing 18

Other 19

Nightclubbing/Dancing 20

American Indian Communities 21

Casino/Gamble 22

Index under 100


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Sources: Travel Market Insights, DNE custom SIAT data; NTTO; Statistics Canada.

2014 Vermont Total Overnight Int’l Visits = 798,000

Canada = 91%

Overseas = 9%

Mexico = 0%



2014 Vermont Visitor Nights

Sources: Travel Market Insights; NTTO; Statistics Canada.

Average Nights Spent In New

England:

Overseas = 8.5

Canada = 2.5

Overseas visitors spent 3.4 times longer in Vermont than Canadian visitors in 2014.

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2014 Vermont Total Spend by Overnight Visitors

Total Direct Spending in 2014 = $220.4 million


Vermont Overseas Visitors - Historical


30Sources: Travel Market Insights; DNE custom SIAT data, NTTO; Statistics Canada.


Vermont Overseas Highlights

Visits 70,000

Total Direct Spend $49.4 million

Average nights in VT 8.5

Average nights spent in Hotel 7.8

Room nights in VT 188,500

Vermont Tourism Summit April 2016 31


Vermont Overseas Highlights

• Top Ports of Entry Boston 27%

NYC 27%

Newark 13%

DC 8%

• Main Purpose of Trip Vacation 55%

VFR 19%

Business 15%

• Repeat Visitor 79%

• First-Time Visitor 21%

• Transportation Car Rental 50%

Private Auto 48%

Flew (domestic) 38%

Bus 14%

Rail 11%

(multiple response)



Vermont Overseas Highlights• Occupation

Management/Business/ Science/Arts 44%

Retired 14% Service 10%

• Top Leisure Activities Shopping Small Towns/Countryside Sightseeing Historical Locations Experience Fine Dining

• Household Income $95,500 (avg. annual) 14% over $200,000

• Travel as couple 33%• Family-friends 17%• Children 9%

• Gender & Age Male 59% / 44 Years old Female 41% / 41 Years old





Vermont Overseas Visitor Market Share - Historical

High point

What If…?

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What if VT maintained market share = to 2009?

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What if VT maintained overseas visitormarket share = to 2009?



Canada Actual 2014

Overseas Potential “if market share was maintained”

70,000 more overseas visits

$49 million more in overseas spend

595,000 more nights

Reaching 100 Million by 2021

(P) Preliminary, subject to revisions.Sources: Department of Commerce, National Travel and Tourism Office; Bureau of Economic Analysis; Statistics Canada; Banco de Mexico.

37Map Design by Jeff Quire – Alaska, Hawaii, Guam and other U.S. Territories not shown.


Forecast, subject to revisions.Sources: U.S. Department of Commerce, National Travel and Tourism Office; Bureau of Economic Analysis; Statistics Canada; Banco de Mexico – Fall 2015 Forecast.

Perc

ent

chan

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01

4-2

02

0



Arr

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Opportunity Growth – 100 Million Visitors by 2021… Both Traditional and Emerging Markets are key.

Partnerships! VT Tourism, Discover New England, Brand USA, airports/airlines, Trade (receptive/operators/agents).Also retail, attractions, sports clubs/assoc., and even other states offer unprecedented marketing leverage and means to grow.

Growth in Air Routes at Boston Logan International – and potentially other New England airports = ACCESS to the global visitor opportunity.

Overseas Visitors to NE and VT – Travel Regionally! Stay longer, increase room nights – and RevPar, offer off-season growth and diversity.

Summary

Thank You!Scott C. Johnson, President Travel Market Insights Inc.

Vermont Tourism Summit April 13-14, 2016 Killington Vermont

International Visitors - VERMONT TOURISM SUMMITWHY TOURISM MATTERS Source: UNWTO Tourism Highlights,...

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