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

{

{

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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!

Gloria Guevara CTO

St Thomas USV, September 2014

gloria@gloriaguevara.com @GGuevaraM