Canadian Tourism CommissionUniversity of CalgaryNovember 17, 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)

Foreign spending: $14.9 billion(+5.7% from 2009)

Domestic spending: $58.5 billion(+6.9% from 2009)

Domestic spending: $58.5 billion(+6.9% from 2009)

Total tourism spending:

$73.4 billion(+6.7% from 2009)

CTC’s attributablecontribution:$1.9 billion

CTC’s attributablecontribution:

16,569

CTC’s attributablecontribution:

$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 20091 US US2 UK France3 France China4 Canada UK5 China Italy6 Germany Canada7 Italy Germany8 Spain Turkey9 Hong Kong Malaysia10 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 used to market Canada…

Canada in the 40’s/50’s

“YOUR NATURE PRODUCT MAY BE BETTER THAN OURS, BUT IT LOOKS

COLD AND INACCESSIBLE.IS THERE SOMETHING TO DO WHEN WE

GET THERE?”- CNN

“GET REAL, WE HAVE NEW YORK, VEGAS, ETC…TELL US WHY WE SHOULD

TAKE A CITY VACATION IN CANADA?”- The Washington Post

“When I look at your advertising, it seems like you are talking to yourself. Consumers want to hear stories about what they will experience --not ads about who you are.”

- Peter Greenberg, NBC Today Show

17 millionAmericans visited Canada in 1947.

17 millionAmericans visited Canada 60 years later in 2006.

TRAVELLERS AROUND THE WORLD ARE

TELLING US THAT THEY WANT TO

EXPLORE AND LIVE A LIFE THAT’S LESS

ORDINARY.

WE’RE PROMISING THAT CANADA IS THE PLACE WHERE THEY CAN FULFILL THIS DREAM & CREATE STORIES ALL THEIR OWN.

CANADA. KEEP EXPLORING IS A STORYTELLING BRAND THAT DELIVERS ON THE PROMISE OF A LIFE LESS ORDINARY.

How we market Canada today…

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

FreeSpirits

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.

Currently 115 SEC members, including 18 from Alberta.

PATH TO PURCHASE

CTC

CTC/DMODMO/

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

We are focused on marketing that generates business demand. And Canada has what it takes to compete!

We work to provide a partnership framework for the Canada’s national tourism industry behind a strong tourism brand “Canada. Keep Exploring.”

We provide tools to help tourism businesses compete in the international tourism marketplace.

We greatly value our important relationships with Canada’s tourism industry.

To wrap up…

Michele McKenzieTwitter: @CTCCEO