4Impact of Travel on the U.S. Economy (2012) Total Tourism Sales: $1.46 trillionTotal Tourism Employment: millionTourism Percentage of GDP: %Total Tourism Exports: $165.6 billionBalance of Trade Surplus: $47.5 billionPercentage of Services Exports: 25%
5U.S. Competitiveness in Travel and Tourism Source: United Nations World Tourism Organization (Jan. 2013)
6Brand USAPrivate sector organization funded in part by up to $100 million in fees on travelers from visa waiver countriesOTTI is the liaison to Brand USA.Actively marketing in international markets to increase demand.Working with partners and destinations from across the country and with federal agencies.
7National Travel and Tourism Strategy Goal: Attract and welcome 100 million international visitors, estimated to spend $250 billion, annually by the end of 2021, and encourage Americans to travel within the U.S. and its territories to see all that our country has to offer.5 Primary Sections:Promoting the United StatesEnabling and Enhancing Travel and Tourismto and within the U.S.Providing World-Class Customer Service andVisitor ExperienceCoordinating Across GovernmentConducting Research and Measuring Results
8NEI Priority Markets Per Traveler (18/12) Origin Country Receipts/ ForecastPer Traveler (18/12)
9OpportunitiesGlobal Growth – global travel and tourism is expected to grow by 4% through 2020 (UNWTO)Promotion – Brand USA active engagement in multiple markets will help us stay competitive with other countries that have ongoing national marketing campaigns.Changes in Travel Facilitation Policy – risk-based screening identifies and removes low-risk travelers through trusted traveler programs.Private Sector Engagement – provides insights, sets priorities.Collaboration – strong working relationshipswithin ITA and across agencies will increase efficiency.
10Risks and IssuesEconomic downturns in source markets (resulting in lower household incomes).Natural and man-made disasters in the United States.As visitation continues to increase to our country, travel facilitation systems may get overwhelmed, resulting in long wait times for visas, long lines upon entry, etc.Ability of Brand USA to successfully raise $100 in order to receive the full matching funds.
11Examples of ITA and Interagency Activities Webinars with the Travel and Tourism TeamFY12: Australia, China, Germany/France, Japan, Korea, Russia, UK, Travel ForecastFY13: Canada, Mexico, Taiwan, Brazil, Traditional vs. BRIC markets, Travel ForecastPromotional and Educational EventsIPW and other trade showsWorking with local CVBsIndustry roundtablesTrade AssociationsMDCP GrantsNTA – promote the U.S. in ChinaCapital Region USA – create marketing partnerships with overseas tour operators to increase hotel bookingsU.S. Travel Association – support meetings and eventsMississippi River Country – attract Japanese visitors to the 10 MS River states
12Research and AnalysisSummary tables highlighting specific tourism trendsMarket and regional profilesForecast of international travelers to U.S. through 2018TINews updates on travel and tourism
13Travel and Tourism Staff Isabel HillDirectorPhone:Curt CottleInternational Trade SpecialistPhone:Ron ErdmannTeam Lead, ResearchPhone:Jennifer KirschInternational Trade SpecialistPhone:Julie HeizerTeam Lead, Industry RelationsPhone:Margie ParkerProgram AssistantPhone:Melissa BennettProgram AnalystPhone:Schermin SmileyAdministrative SpecialistPhone:Mark BrownMarket Research AnalystPhone:John TerpeningEconomistPhone:Richard ChampleySenior Research Analyst,Phone:Claudia WolfeEconomistPhone:
14Industry and Analysis’ Spotlight on Aerospace July 16, 2013Prepared byOffice of Transportation and Machinery
15Aerospace The aerospace industry includes: Large Civil Aircraft (e.g. Boeing 737)Business JetsGeneral Aviation Aircraft (including helicopters)Aircraft EnginesCommercial Satellites and LaunchesUnmanned Aerial SystemsAerospace PartsAerospace Products and Equipment (e.g. NextGen Air Traffic Management)
16NEI Priority Markets: (Figures based on Year-End 2012) U.S. Aerospace Exports to Target Markets(“Green Box” Countries)European Union $33.2 BGCC * $12.2 BChina $9.1 BJapan $9.0 BBrazil $6.8 BCanada $6.6 BKorea $3.9 BTurkey $2.0 BRussia $1.7 BIndia $1.5 BSouth Africa $534 M*Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and UAESource: U.S. Census Bureau
17OpportunitiesIn general, U.S. aerospace manufacturers see continued global growth for their products. Looking ahead over the next 20 years, Boeing sees demand for 35,280 new airplanes, valued at $4.8 trillion (at list prices).Growing markets like China, India and Latin America show promise for increased exports:AircraftSpare partsMaintenance servicesFlight simulatorsAirport equipment, including air traffic managementU.S. manufacturers are world leading producers of new technologies:Unmanned systemsGreen technologiesCompositesNextGen Air Traffic ManagementCommunication and imaging satellitesReform of U.S. export control laws simplifies the process for U.S. companies to export many products that were previously on the more strictly controlled ITAR list.
18Risks and IssuesForeign governments seeking to create/bolster their domestic industries create programs to subsidize their manufacturers.Foreign governments also create OECD-inconsistent programs to finance their aerospace exports.The aerospace industry is highly regulated both in the United States and abroad. Fees in foreign markets can be an issue.Many of the fastest growing markets rate poorly on ease-of-doing business rankings.Many sales campaigns and infrastructure projects may take years to come to fruition.Investment in the domestic market may be necessary to win a sale (may be mandated offsets or just local business practice).U.S. products are expensive (but high quality) (e.g. easier to buy 1 non-U.S. produced helicopter a year than 1 U.S. helicopter that will last 10 years).
19Examples of ITA and Interagency Activities Supporting Ohio Aerospace Industry’s MDCPU.S. / Canada Aerospace SummitEducational Seminars – Export control reform, financing, etc.Proposed trade mission to Brazil 2014 (open to all U.S. companies)Coordinate with USTR on highest value WTO dispute settlement case regarding European subsidies to AirbusSupport USTDA activities like Latin America SummitPromote U.S. exports at aerospace trade shows, including Farnborough and Paris, other shows like Singapore and Dubai, and the annual Air Traffic Control Association conference and the annual Space SymposiumSupport FAA participation at the UN ICAO meetingsRepresent Commerce during drafting of National Space Policies to promote pro-export languageParticipate in OECD meetings on aircraft financingNextGen Vendor’s GuideU/S Sanchez at the opening of the U.S. Pavilion at the Farnborough Air Show (June 2012)DAS Chandra Brown opening the Alternative Aviation Fuels Pavilion at the Paris Air Show (July 2013)
20Aerospace Team Staff Scott Kennedy; Aerospace Team Leader Kim Wells; Commercial Space, Middle East, North Africa, Aircraft Engines, Export ControlsAlexis Haakensen; Aircraft Finance, General Aviation, Sub-Saharan Africa, Asia, Latin AmericaFred Elliott (currently away on detail); Large Civil Aircraft, Aircraft Parts, Offsets, Export Control, Aircraft Subsidies, EU, Canada, JapanJonathan Alvear; NextGen Air Traffic Management, Aviation Security, Airport InfrastructureCS Aerospace Team:Melissa Grosso; Global Aerospace Team Leader(860)