Canadian Tourism Commission Tourism Industry Association of Prince Edward Island December 2, 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.

INTERNATIONAL TOURIST ARRIVALS BY REGION (MILLION)

Are we spending our money in all the right places?

Our goal: Grow tourism export revenues for Canada.

Our vision: Inspire the world to explore Canada.

Our mission: Harness Canada’s collective voice to grow

export revenues.

Our values: Innovation, Collaboration, Respect

CTC OVERVIEW

• 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

• Generate wealth for Canadians by stimulating

demand for Canada’s visitor economy through

effective tourism marketing and promotions

supported by aligned market research.

OUR MANDATE

• 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.

OUR BUSINESS MODEL

OUR MARKETS

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.

INTERNATIONAL TRAVELLERS’ AWARENESS

• Travellers are more aware of countries rather than

regions or attractions.

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

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)

Domestic spending:

$58.5 billion (+6.9% from 2009)

Total tourism

spending:

$73.4 billion (+6.7% from 2009)

CTC’s attributable

contribution:

$1.9 billion

CTC’s attributable

contribution:

16,569

CTC’s attributable

contribution:

$244.2 million

DOMESTIC VS. OVERSEAS* TRAVELLERS’

SPENDING PER TRIP

Domestic travellers

in Canada $305/trip

*Overseas = Travellers from all CTC key markets, excluding the US.

Note: Based on average for 2010.

Overseas* travellers

in Canada $1,400/trip

CANADA HAS

WHAT IT TAKES

TO COMPETE

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

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

HOW WE MARKET

CANADA TO THE

WORLD

BRAND

58% of the decision to

visit Canada is driven by the

tourism brand

*Interbrand

Ranking of the Most Reputable Countries in the World

Country RepTrak™ 2011 External G8 Scores

CUSTOMER

Place • Offers variety

• Vibrant cities on edge of

nature

• Cool accommodations

Product

• Active participation

• Shopping, dining

• Involves the main sites

• Social events, festivals

• Multi-faceted

• Convenient

Price

•Range of options

•Menu of choices to

pick and choose

Promotion

• Lively and direct

• Strong new media

presence

• Fun

• Stylish

• Active adventure

• Mix of city/town and

nature

• Multi-city trips

• Immersive

• Beautiful scenery with

activities

• Allows free exploration

• Environmentally, socially,

responsible

• Will pay for unique

experiences, local, ethical

products

• Value for money

• Transparency of offering

• Varied /extensive media mix

• Include other traveler reviews

• Social connection with locals

• Beautiful scenery/activities

• Stylish/creative

• Places with rich history

and cultural uniqueness

• Secluded, off beaten path

• Historical emphasis

• Authentic, living culture

• Less family/group oriented,

more one-on-one

• Reasonable price with à la

carte options

• Traditional media and

internet

• Practical details

• Cater to older interests

• Less commercial

Cultural

Explorers

Authentic

Experiencers

Free

Spirits

There are currently a total of 115

SEC members, including 2 from PEI:

• Tong and Shuck – Future

Seafoods Inc. / Experiences PEI

• Giant Bar Clam Dig Adventure –

Tranquility Cove Adventures

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.

PATH TO PURCHASE

CTC

CTC/

DMO DMO/

SUPPLIER

CTC

ROLES ALONG THE PATH TO PURCHASE

CONSUMER DIRECT

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

SOCIAL MEDIA

Name: Explore Canada Like a Local

URL: www.explorelikealocal.com

URL: www.explorelikealocal.com

US Launch Online Ads & iPad

MEDIA RELATIONS

Media & public relations • Events, publications

• Media stories

TRAVEL TRADE

Travel trade promotions • Work with our key accounts

• Train travel agents to sell Canada

MC&IT

MC&IT • Meetings

• Conventions

• Incentive travel

MIXED RESULTS

YEAR-TO-DATE

JANUARY-

AUGUST 2011

YEAR-TO-DATE

2011

US total 8,204 -2.3%

UK 470 -5.6%

France 320 +5.8%

Germany 219 -5.9%

Australia 168 +5.1%

China 163 +23.4%

Japan 132 -14.4%

South Korea 109 -8.7%

India 100 +5.8%

Mexico 97 +7.0%

Brazil 59 +9.7%

Total key markets 10,042 -1.4%

Total international markets 11,293 -1.5%

ESTIMATED OVERNIGHT VISITS BY CTC MARKET (000s)

Note: Statistics Canada preliminary estimates.

Source: Statistics Canada, International Travel Survey.

LOOKING

FORWARD

OUR STRATEGY FOR THE NEXT YEAR

• Focusing on generating tourism

demand and export revenues.

• Driving results for Canadian tourism

industry and SMEs who create jobs.

• Focusing on innovation and alignment.

• Leveraging Canada’s strong brand.

• Seeking competitive opportunities.

Michele McKenzie Twitter: @CTCCEO