Gloria Guevara CTO
St Thomas USV. September 2014
Travel is a way of life…
Drives economy and creates jobs
Economic impact reports 184 countries
Travel and Tourism Industry
Travel and Tourism
9.5% GDP
266 millon jobs
$7 trillion contribution
1 in 11 jobs
9% of GDP
3rd source of foeing income
2.5 million direct jobs plus 5 mill indirect
+ 43 K economic units
80% SMEs
+28 mill international travelers + 180mill domestic
Tourism for Mexico
U.S. Border 3K kms
11,121 kms Litoral Extension
Mexico at a Glace
Area 2million kms sq
29 yrs Average age
31 States + DF
Exports 320,524 US$ mill
GDP p/capita 1,154 USD
“the Perfect storm”
What was our situation?
Challenges
Security
7
Crisis financial and economic
Outbreak AH1N1
In addition ..
Who was controling our destiny?
“When it is dark enough, you can see the stars.” Ralph Waldo Emerson
Inside – Out strategy
1. Every Destination is Different and UNIQUE
1. 360º view - Methodology
Our DNA ? what assets?
Our value proposition? Different?
2. Market Segments? Products? Target? Our Brand Mature?
3. Alignment? IP and Government? Unions?
4. Communication ? Media? Message?
DNA Destination Developme
nt
Market and Traveler
Segmentation
Product Developme
nt
Experience Design
Commercialization Strategy
Promotion Strategy
Branding Positionin
g
360o
Consulting
Cultural
Heritage
Adventure
Religious
Luxury
Medical
MICE
Tour operators
Travel agencies
OTA´s
Partners
Regions
Locations
Destinations
Campaigns
International Fairs
Roadshows
Gastronomic Hospitality
Events Live Cultures Sports
Couples
Retired Families Domestic
Targeted
Countries
International
Image & Brands
Public Relations
Communication
+ 640K hotel rooms
14 AAA Hotels 5 Diamond Award
Cruises (Cozumel large port of call)
174 protected natural areas
70 convention centers/MICE
Sun & beach icon destination (Los
Cabos, Cancun, etc.)
Num 2 Luxury segment (Virtuoso)
1er place num of SPAs (SpaIntnal)
Best place for retirement (AARP)
1
2
38 UNESCO World Heritage
Sites/goods (Top 5 Worldwide)
Gastronomy (2010) and Mariachi
(2011) World Heritage
83 Magic Towns
+ 3K years of history
40K archaelogical sites and 62 ethnic
groups
Routes of Mexico
+ 50 world-class golf courses
Strategic Plan
1. 2011 “The Year of Tourism in ”
2. National Agreement of Tourism
3. Increase Investment
4. Diversification
5. “Marca País” initiative to
Reposition the image of Mexico
Public Private
Product Market
International presence
{
{
{ 13
Unprecedent alignment : One plan Federal-State-Municipal
Collaboration and teamwork
• President Felipe Calderón and his entire cabinet
• Taleb Rifai, Secretary General UNWTO
• David Scowsill, CEO WTTC
• All Gobernors
• Congress and Senators
• Private Sector
• Universities and Academia
• Unions
National Agreement for Tourism (Feb 28 2011)
14
1. Increase conectivity and facilitate travel to and from Mex.
2. Build, maintian and improve, touristic infraestructure y support urban ordenamiento.
3. Sterngthen and invest in the tourist promotion in Mexico and international markets
4. Foster public and private investment and faciliate financing.
5. Improve and increase competiveness of destinations and touristic enterprises to guarantee the experience to the visitor.
6. Diversify and increase toursitic offering and products
7. Promote and support the integration of the entire dosmetic productive chain.
8.Offer the best service and promote our culture.
9.Propose regulatory changes and laws in favor of turism.
10.Promote a balance and sustentable development
Key Pillars of National Agreement
Connected to each state plan
15
Product Diversification
DNA provided uniqueness of each top destination
New potential Markets and Segments Create and launch new products for the new segments
Developed a marketing campaing for new products
Promoted experiences according to new consumers
Capitalized opportunities: MAYA CALENDAR
DNA Destination Developme
nt
Market and Traveler
Segmentation
Product Developme
nt
Experience Design
Commercialization Strategy
Promotion Strategy
Branding Positionin
g
360o
Consulting
Cultural
Heritage
Adventure
Religious
Luxury
Medical
MICE
Tour operators
Travel agencies
OTA´s
Partners
Regions
Locations
Destinations
Campaigns
International Fairs
Roadshows
Gastronomic Hospitality
Events Live Cultures Sports
Couples
Retired Families Domestic
Targeted
Countries
International
Image & Brands
Public Relations
Communication
Product Diversification
Adventure Travel
Medical Tourism
Sun & Beach
18
Cultural Tourism
Mayan World
Gastronomical Religious Tourism
Meetings & Conventions Magical Towns
Positive Signals Foreign Income and Spending
Source: Bank of Mexico 20
(Million Dollars)
• On May 2011 Mexico accepted US Visa as Valid
• US Residency or flying from US – NO Need Visa
• Online 24 hrs Visa for Russia and China
• Certify Travel Agencies to support processing
• Remove visas for Pacific Alliance (Colombia, Chile, Peru and
Mexico) and Brazil
• APEC Business Card
• Global Entry with USA
Consider: Accepting Canadian and Schenghen; Regional Visas
Market Diversification
New Immigration Policies implemented
21
85.6%
51.1%
27.2%
29.0%
1.0%
18.7%
2.8%
11.6% Strategic
Emerging
143 nationalities grew
January-August 2012
Market Diversification
Source: Immigration Statistics System (SIOM)
224 nationalities arrived in 2011
In 18 months +1.8 million visitors with American Visa
Main Nationalities with increases (Jan-jul 2012)
Variations
Country 11/10 12/11 Rusia 59.4% 83.1% Brasil 45.6% 56.2% Sweden 35.4% 33.1% China 33.9% 30.4% Peru 42.5% 29.3% Argentina 16.1% 28.0% Japan 9.2% 19.3%
Occupancy Rates
17 months of continued growth
(April 2011 - August 2012)
23
Repositioning the Image of Mexico
“Marca Pais initiative”
24
Public Relations
Online Strategy
Testimonials and Opinion Leaders
Advertising Campaigns
Invite Celebrities and Major Events
Private Sector Involved and other Ministries (Foreign Affairs , Economy, etc.)
More than
800 interviews more than
12.5 billion
of impacts
25
Public Relations
Roadshows and interviews in
international markets with Media (Mexican Government & Private sector leaders)
Online Strategy
26
www.mexicotoday.org
MexicoToday.org
+1 billion views 617,961 unique visitors
Main Networks • Pinterest • Twitter • Facebook • YouTube • Flickr
MexicoToday in Europe
✓Positives aspects from Mexico ✓ Closing the gap between perception and reality ✓ Direct to the target Audience ✓Culture, Environment, Economy, Tourism and Mexico in the world
Testimonials
Key Leaders of Opinion 5.8 million impressions/impacts
27
Mexico, the place
you thought you knew
North America
Major Campaigns & Programs
MexicoToday
Europe
28
Testimonials Campaign
Celebrities
30
+13 Billion media impressions
Powerful vehicle to reach their fan base
Tonality of Media Coverage Measurement
31
Domestic and International Tourists
International Tourists Domestic Tourists Total Estimated Tourists 2012
32
+9.3%
+19.6%
20 Members G20
7 Invited Countries
7 International Organizations
Major Events
T20 in Merida and declaration
Importance of Travel and Tourism
Tourism as a driver for Economic
Growth
Additional Jobs: 5.1 Million
Receipts: $206 Billion USD
Proposals
Travel and Visa Facilitation
G20 Los Cabos, Mexico
5 Priorities
G20 Declaration of Leaders
“We recognize the role of as a vehicle for
job creation, economic growth and development, and, while
recognizing the sovereign right of states to control the entry
of foreign nationals, we will work towards developing
in support of job creation, quality work,
poverty reduction and global growth.”
36
Visión del Turismo de México en el Mundo “The leadership of Mexico in Tourism has become a model to the rest of the world for the support and the actions implemented in favor of Tourism worldwide” (Taleb Rifai, Secretary General of UN World Tourism Organization) “We have to congratulate the Mexican Government for their support to Tourism and Travel, it is great model of a Government that believes in the power and capacity of the Travel and Tourism Industry” (President del WTTC, David Scowsill) “According to the Mayan Calendar, the end is near. Or is it? Our travelers are discovering Mexico and booking at record numbers”. Dara Khosrowshahi CEO Expedia “Mexico is a significant part of our travel business and has been for many years. Over the past twelve months, we have seen double digit growth in Mexico sales and travelers. We look forward to continued growth in Mexico tourism in 2013.” Jack Richards, President de Pleasant Holidays
37
Tourism of Tomorrow …
Industry that has changed
Technology …
Arrival experience
Travel and Tourism: Global Forecast 2023
10% GDP
$10.5 trillion contribution
70 million new jobs
1 in 10 jobs
Latin America in the next 10 years
$379 billion (9%GDP) $629 billion GDP
16 million (8%) 21 million jobs
$38 billion $85 billion
Caribbean Economy next 10 Years
$48 billion (14%GDP) $ 69 billion
$25 billion $37 billion visitor exports
2 million 2.5 million jobs
Direct spend 30% Domestic, 70% Foreign
12% employment
Regional Alignment : Asia
Take it to next level ..
!
Opportunities 1. WORK Together
One Caribbean – move faster as ONE
Where is the competition? (Here? Other Regions?) cooperate to compete
2. Find/validate your DNA, each island/destination has something different, and unique.. – Positioning
3. EASY to Travel (Freedom to Travel) Immigration process (Consider options, departure, arrival, US Visa)?
Multi destination .. (example national from 7 top countries vs visas)
Welcome travelers and Embrace technology
4. It is ALL About the Experience Make it the BEST (return ratio) – Service is Key
Every destination is UNIQUE..
Travel gives us an opportunity to see it,
to learn and understand other cultures
Travel creates Empathy!
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