WELCOMING INTERNATIONAL VISITORSNovember 27, 2018

41st Annual Tourism Summit

Presented by Tourism Nova Scotia

TODAY’S DISCUSSION

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• Why be export-ready

• Priority overseas market insights

• Overseas visitor profiles

• Tourism Nova Scotia’s business

resources

PRIORITY OVERSEAS MARKETS

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United Kingdom Germany China

WHY BE AN EXPORT TOURISM BUSINESS?

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• International visitors stay longer, spend

more

• Expand your distribution network

• Opportunity to build repeat business

• More predictable cash flow

• Potential product and service expansion

• Expanded travel periods

• Risk mitigation

TRAVEL TRADE-READY BASICS

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• Rates

• Supply and inventory

• Booking system and support

• Year-round support

• Response times

• Service level expectations

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RECEPTIVE TOUR OPERATORS

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• 90% of overseas trade business

comes through a receptive tour

operator

• Experts in Atlantic Canada product

• They are brokers of tourism products

and services

• International Inbound Tour Operators

are their clients

• Locally and nationally based

EMMA CASHMORE –UK MARKET

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UK MARKET HIGHLIGHTS

• Largest overseas market for Nova Scotia

• Spend more, stay longer - the average pleasure visitor party from the UK

spends $4,400

• Visit June-October (higher likelihood to visit in Fall than other markets)

• TNS targets Authentic Experiencers, Cultural Explorers and Free Spirits

• NS product match – people, touring, relaxation and scenery and

landscapes

• One-half make their travel decision 5 months or more in advance of their

NS visit

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2017:

Canada – 800K

Nova Scotia – 26,300

2018:

Canada – 825K (est.)

Nova Scotia – 32,100 est. (+22%)

UK TRAVELLERS TO CANADA

GETTING TO NOVA SCOTIA FROM THE UK

UK MARKET INSIGHTS

• 1.5% projected UK GDP growth in 2018

• 1.1% projected UK consumer spending growth

• The £ is strong against the CAD$

• Brexit has led to political and economic uncertainty

• Impacts of warmer weather in Britain

• 73% of Britons took trips overseas in 2017 (+2%)

• UK outbound to Canada has seen double digit growth

• Many accolades in influential media publications

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UK MARKET INSIGHTS – KEY TRADE ACCOUNTS

• Travel Trade is an important sales channel for leisure

travellers to Nova Scotia

• Key sellers: Canadian Sky, Barrhead Travel, Independent

Traveller, Trailfinders, First Class Holidays

• +20% growth in 2018 Nova Scotia sales

• 74 UK based tour operator companies currently selling

258 NS programs through more than 7,000 agencies

• 31 new Nova Scotia programs/product added in 2018

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UK MARKET INSIGHTS - MEDIA LANDSCAPE

• Type: Broadcast (TV/Radio), Print (newspapers/magazines), Online

(social media/blogs)

• Print remains as important as it has ever been. Print and radio perform significantly

better for brand building

• UK’s TV landscape evolving rapidly. TV streaming services overtaking subscription

• Editors’ preference for authentic experiences - clear trend towards discovery.

Journalists who can “look under a rock”

• Media exposure 2018 = £1.5 million ($2.6 million) +5.2%.

• Print is most prominent media channel

UK VISITOR PROFILE (CANADA)

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UK VISITOR PROFILE (CANADA)

Affordability 40%

Competing destinations 20%

Too far/Too long 18%

Exchange rate 15%

Weather 12%

• Top 5 barriers UK visitors consider when choosing Canada as travel destination

UK VISITOR PROFILE – MOTIVATORS/INFLUENCES

• Outdoor experiences

• Cultural experiences

• Relaxation (de-stress)

• Gastronomy

• Wildlife viewing

• City experiences

• Influenced by something they heard or read

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UK VISITOR PROFILE – NOVA SCOTIA’S FIT

• Scenery/Landscapes/Nature

• Whale watching, marine life, seabirds, moose

• Coastal soft adventure – hiking, kayaking, parks

• Local Food, seafood, wineries, breweries, distilleries

• Halifax – urban experience, music, nightlife

• First Nations Celtic, British/French heritage

• Short travel time/distance

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UK VISITOR PROFILE

• Appreciate quality and value for money

• Will pay more for unique experiential activities

• Cultural considerations few

• Millennial market will be important

• Proud to tell others where they have visited

• Appreciate a destination that allows them to de-stress

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MAVIS ZHENG-CHINA MARKET

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• China is one of Canada’s fastest growing tourism markets

• The average pleasure visitor party from China spends $2,400

• TNS targets Authentic Experiencers, Cultural Explorers and Free

Spirits

• NS product match – scenery and landscapes, summer outdoor

activities, world heritage sites, different experiences than at home,

and local food experiences, and seafood

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CHINA MARKET HIGHLIGHTS

• China’s Gateway Cities

to Canada

➢ Beijing

➢ Shanghai

➢ Guangzhou

➢ Hangzhou

➢ Nanjing

➢ Qingdao

➢ Chengdu

➢ Xiamen

➢ Shenyang

➢ Zhengzhou

➢ Kunming

Population: 1,396 million (2015)

Size of Adult: 1,051 million

China has 206 airports

and building another 66

new airports

CHINA MARKET HIGHLIGHTS

2017: 672,300 – 12% increase

2018: continue growing due to

➢ more visa application centers

➢ CCYT (Canada China Year of Tourism)

➢ Increases in direct air capacity

CHINESE TRAVELLERS TO CANADA

GETTING TO NOVA SCOTIA FROM CHINA

• Economic Growth: Second largest economy in the world after the U.S. with

willingness to spend on travel

• Disposable Incomes: Chinese incomes growing at 10% per year

• FX Rate: RMB to the U.S. dollar

• Chinese Desire to Travel: Travel is the most desired leisure pursuit for 56% of

middle and upper-class Chinese

• Willingness to Spend: 19% of disposable incomes spent on travel on average

• China Outbound Travel Growth: 130M outbound in 2017

• Growth: Number of Chinese outbound travellers is projected to more than

double in the next 5 years

CHINA MARKET INSIGHTS

CHINA MARKET INSIGHTS - MOBILE PAYMENT

Chinese visitors most frequently used mobile payments for shopping and dining

while abroad

➢ Shopping – 63%

➢ Dining – 62%

➢ Attractions – 58%

of Chinese visitors used mobile payments for their

expenses abroad 65%

of people who use mobile payments are likely to

spend more 90%

TV stations: CCTV is the most competitive mainstream TV, with 98.3% nationwide coverage

Major Newswires: China News Service, China News Agency, etc.

Daily Broadsheets/Newspapers: Global Times, China Daily, Shanghai Morning Post, Southern

Metropolis Daily etc.

Weekly Lifestyle Publications: Lifestyle, The Bund, The Weekend, Let’s, Traveler Weekly, Grazia, etc.

Power Fashion Publications: Vogue, Cosmopolitan, ELLE, GQ, Esquire, Modern Bride etc.

Leading Consumer Travel Publications: Condé Nast Traveler, Voyage, National Geographic Traveler,

Top Travel, etc.

Video Sites: iQiyi, Phoenix, Channel Young, World Traveller etc.

Radio stations

Newspapers

Magazines

Travel Trade

Publications

Over 200

Countless

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16 National dailies with circulations of 480,000+Regional newspapers with circulations of 260,000+

50 Lifestyle, tourism and fashion magazines Average circulation of 80,000+

11 Travel Trade magazine, circulations of 50,000+2 Travel Trade newspaper, circulations of 150,000+

CHINA MARKET INSIGHTS - MEDIA LANDSCAPE

➢ Baidu’s search dominance

➢ Owns 25% of Ctrip, Ctrip owns 45% of Qunar and 36% of eLong.

➢ Owns a rich ecosystem made for the mobile age

➢ Tencent owns 15% of eLong and is invested in LY.com,

Tuniu and Meituan

➢ Payment platform and e-commerce scale

➢ Fliggy, and also linked with Meituan

Reasons for using internet

➢ Instant messaging – 90.8%

➢ News – 83.1%

➢ Search – 80.3%

➢ Blogs – 72%

➢ Video – 69.1%

➢ Online shopping – 56%

➢ Travel booking – 34.3%

CHINA MARKET INSIGHTS - ONLINE TRAVEL LANDSCAPE

WeChat

China’s “Facebook and WhatsApp

combined”

Occupation: 80% of the high income

earners in China use WeChat

Used by 90% of users as a major work

communication tool

60% of WeChat users in China are aged

between 16 & 35 years of age

China Market Insights – WECHAT/WEIBO

Weibo

China’s “Facebook and Twitter combined”

Build brand name. Create awareness to

attract fans

Pictures and videos can be published in a

single post, and each post can contains 140

words, 9 images, videos, emoji, hashtags

Widely used by government, media,

celebrities, corporates to deliver hottest

news

CHINA VISITOR PROFILE (CANADA)

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• Skew female: 61.8% of Chinese travellers are female

• Younger Demographic: 87% of Chinese outbound travelers are under

40

• Well-educated: 67% with a bachelor's degree and 13% with a

master’s = 80% are highly educated

• Exploding mobile access

CHINA VISITOR PROFILE

• Top 5 factors Chinese visitors consider when choosing an overseas

travel destination

CHINA VISITOR PROFILE

Beauty and uniqueness of attractions 56%

Safety 47%

Easy visa procedures 45%

Friendliness of locals to visitors 35%

Affordability 34%

CHINA VISITOR PROFILE – TRADITIONAL VISITOR

Characteristics of the traditional Chinese visitor:

• Consider a Chinese-speaking guide essential

• Want a highly organized itinerary

• Like the safety and convenience of group travel

• Visit many locations in a short time

• Usually stay in clean, budget lodgings

• Prefer to eat only Chinese food

• Enjoy shopping for luxury consumer goods to bring back home

• Tend to travel during the national holiday periods

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CHINA VISITOR PROFILE – THE FIT TRAVELLER

Characteristics of FIT traveller:

• Language not a barrier to travel, willing to travel where Chinese is not

spoken

• They want freedom to linger at attractions or locations they enjoy

• Concerned with safety, and food hygiene in particular, and like ‘the details’

to be taken care of for them when enjoying an experience

• Prefer unique and luxury lodgings - the accommodation is part of the

experience

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CHINA VISITOR PROFILE – THE FIT TRAVELLER

Characteristics of FIT traveller:

• Want to have authentic, local experiences, to eat local foods and try local

delicacies

• Also appreciate small comforts from home like congee for breakfast, hot

drinking water, and hotel slippers- ultimately, choice is important

• Instead of returning with luxury purchases, they want to return with

experiences they can use as social capital

• Very likely to document their visit, live-as-it’s-happening, on social media

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CHINA VISITOR PROFILE – TRAVEL MOTIVATORS

• Interesting culture

• Want to have fun experiencing the culture of a destination

• Historical sites and attractions

• Want to experience the important, iconic places and attractions and document

themselves experiencing it on social media

• Beautiful, unspoiled nature

• Most FIT travellers are coming from urban areas with poor air quality

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CHINA VISITOR PROFILE – TRAVEL MOTIVATORS

• Sense of freedom

• Physically, China is population dense, especially in urban areas

• Socially, there is a sense of restriction due to the political regime

• Experiential travel, that emphasizes different areas of local life

• Interested in local cuisine, culture, history, shopping, nature and social life

• Drawn to experiences that promise to be ‘authentic’, ‘exclusive’, or ‘VIP’

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CHINA VISITOR PROFILE – NOVA SCOTIA’S FIT

• Historical sites and attractions

• Iconic Nova Scotia landmarks: Peggy’s Cove, Bay of Fundy, Cabot Trail

• Important historical sites: Fortress Louisbourg and Pier 21

• UNESCO World Heritage sites: Lunenburg and Southwest Nova Biosphere

Reserve

• Beautiful, unspoiled nature/sense of freedom

• Purity of the air; clean, unspoiled landscapes; Wide open spaces

• Freedom to have fun and express your individuality

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CHINA VISITOR PROFILE – NOVA SCOTIA’S FIT

• Experiential travel/Interesting culture

• A survey of recent Chinese visitors to Canada indicates that 45% are in the

Free Spirit EQ segment. Experiences that appeal to Free Spirits will appeal to

FIT Chinese

• Xin Xian: food is seen in its natural state, caught/picked at the source, and the

visitor is involved in the process of sourcing, preparing and cooking it.

They expect not just fresh, quality ingredients, they also want amazing flavours

• Wine tours, especially ice wine

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• Surnames come first in China

• Handshake is soft, sometimes bow

• Have bilingual cards, don’t write on them but consider them an extension of yourself

• Be ready for personal questions that we wouldn’t consider asking: How much do you

earn? Are you married?

• Use simple English and speak slowly and clearly

• Be mindful of authority and personal space

• Avoid talking politics or religion

• Good topics: Chinese food, sports or places to visit

CHINA VISITOR PROFILE – EXPECTATIONS

• Learn a few words of Chinese. This shows an interest in your host’s

language and culture

➢ HELLO Nihao (knee-how)

➢ THANK YOU Xiexie (shye shye)

➢ GOOD-BYE Zài jiàn (dzai jyan)

CHINESE VISITOR PROFILE – EXPECTATIONS

CHINA VISITOR PROFILE – PAYMENT EXPECTATIONS

Xiexie!

PHILIPP GRIMM -GERMAN MARKET

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GERMANY MARKET HIGHLIGHTS

• Visitation from Germany shows strong growth in recent years

• Stay longer, spend more - the average pleasure visitor party from Germany

spends $4,400

• Visit June-October (higher likelihood to visit in Fall than other markets)

• TNS markets to Authentic Experiencers, Cultural Explorers and Free Spirits

• Strong NS product match – nature based activities, friendly people, culture

and heritage, outdoor scenery and landscapes, touring options

• One-half make their travel decision 5 months or more in advance of their

NS visit

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2017:

Canada - 388K

Nova Scotia – 13,800

2018:

Canada – 400K (est.)

Nova Scotia – 15,900 +13%

GERMAN TRAVELLERS TO CANADA

GETTING TO NOVA SCOTIA FROM GERMANY

MARKET INSIGHTS - GERMANY

• Population: 82.79 million (2017)

• 4th largest immediate potential market size for Canada overall

• Immediate market potential for Canada: 5.1 million in the next 2

years (979K for Atlantic Canada)

• 2% projected consumer spending growth in 2018

• 3rd largest outbound market in tourism expenditures with USD

$80 billion in 2016

• Very strong € compared to CAD$

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GERMANY MARKET INSIGHTS

• 77.2% of all Germans travelled in 2017 – a record high

• 8.4% of all German traveller holidays in 2017 were long-

haul

• Stationary travel agencies and tour operators remain

main sales channel – especially for long-haul

• Canada has a very positive image/safe destination

• Capacity issues in Western Canada

• Growing interest in Atlantic provinces

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MARKET INSIGHTS – KEY TRADE ACCOUNTS• Travel trade is the most important sales channel for leisure

travellers to Nova Scotia

• Key sellers for NS: DER Touristik, TUI and specialist like

Canusa, CRD International

• 35+ major tour operator companies and specialists selling Nova

Scotia product through more than 10,000 travel agencies

• +13% growth in 2018 Nova Scotia sales

• New Nova Scotia programs/product being added/extended in

2019

• Travel brochures still important

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GERMANY MARKET INSIGHTS - MEDIA LANDSCAPE

• Broad travel-related media landscape (travel section in every

newspaper and many magazines)

• Increased importance of online media/social media for destinations

(close to 90% of Germans use the internet daily)

• Leading social media network is Facebook: 32 million active users (23

million daily), followed by Instagram: 15 million users (Nov/2018)

• But: Traditional media outlets are still of key importance

• Germans are among the world‘s keenest newspaper readers (44.6

million people read a newspaper regularly; print and digital)

GERMANY VISITOR PROFILE

• Average of 30 vacation days/year plus 10-14 public

holidays

• Average length of stay: 9.5 days in Nova Scotia

• FIT vs. Group Travellers

• Many German travellers will visit multiple provinces

• Willing to pay more for quality

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GERMANY VISITOR PROFILE – TRAVEL MOTIVATORS

• Nature/Beauty

• Cultural Immersion

• Relaxation (de-stress)

• Safety

• Uncrowded

• Wildlife

• Influenced by something they heard or read

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GERMANY VISITOR PROFILE – NOVA SCOTIA’S FIT

• Scenery/Landscapes/Nature – coastal hiking/parks

• Wildlife viewing – whale watching/moose/eagles

• Coastal soft adventure – kayaking/canoeing

• Camping/Motorhome travel

• Uncrowded

• Authentic

• Unique experiences

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GERMANY VISITOR PROFILE - EXPECTATIONS

• Most German travellers speak English

• No Surprises! Germans like to have all relevant details

• Important not to over-promise or under-deliver

• Appreciate authenticity

• Direct and efficient

• Consistency is important

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GERMANY VISITOR PROFILE - EXPECTATIONS

• Unique inns, B&Bs, cottages, lodges preferred

• Personal and friendly service

• Cleanliness and well maintained properties and

equipment

• Value for money – a 4-star rating needs to deliver

Danke!

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TOURISM NOVA SCOTIA BUSINESS RESOURCES

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MARKET DEVELOPMENT

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• Relationships with key accounts

• Travel trade and media familiarization tours (FAMS)

• Tradeshows/Marketplaces

• Proactive client communications

• Destination training

• Industry training

SECTOR DEVELOPMENT

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• Business development guides:

https://tourismns.ca/development/business-

development/business-resources

EXPERIENCE DEVELOPMENT

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• Experience Nova Scotia: A Toolkit: Workbook and planning

worksheets help you create, price, and sell a visitor-focused, hands-on

tourism experience. https://tourismns.ca/development/experience-

development/experience-toolkit

• World-Class Experience EXCELLerator Program: Participants

benefit from one-on-one coaching, research insights, professional

development, photo and video production, and more

https://tourismns.ca/programs/world-class-experience-excellerator-

program

RESEARCH

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• Find the latest information about Tourism Nova Scotia’s

research

https://tourismns.ca/research/research-overview

• Visitor Exit Survey

https://tourismns.ca/research/visitor-exit-survey

TRAVEL TRADE READINESS PROGRAM

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• Toolkit

• Webinars

• Workshops

• Mentoring

• https://tourismns.ca/travel-trade-toolkit

STAY CONNECTED

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• Newsletter

Sign-up for inTouch

• Twitter

Follow @TourismNS

• LinkedIn

Follow Tourism Nova

Scotia

• Website

Visit tourismns.ca

THANK YOUPeter JohnsonManager, Market DevelopmentTourism Nova ScotiaP 902 798 6922E peter.johnson@novascotia.ca