0. Industry & Analysis’ Spotlight Series
July 16, 2013

1. Speakers
Isabel Hill
Travel and Tourism Office of Travel and Tourism Industries
Scott Kennedy
Aerospace
Office of Transportation and Machinery

2. Industry & Analysis’ Spotlight on Travel and Tourism
July 16, 2013
Prepared by
Office of Travel and Tourism Industries

3. Travel and Tourism

4. Impact of Travel on the U.S. Economy (2012)
Total Tourism Sales: $1.46 trillion
Total Tourism Employment: million
Tourism Percentage of GDP: %
Total Tourism Exports: $165.6 billion
Balance of Trade Surplus: $47.5 billion
Percentage of Services Exports: 25%

5. U.S. Competitiveness in Travel and Tourism
Source: United Nations World Tourism Organization (Jan. 2013)

6. Brand USA
Private sector organization funded in part by up to $100 million in fees on travelers from visa waiver countries
OTTI 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.

7. National 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 States
Enabling and Enhancing Travel and Tourism
to and within the U.S.
Providing World-Class Customer Service and
Visitor Experience
Coordinating Across Government
Conducting Research and Measuring Results

8. NEI Priority Markets Per Traveler (18/12)
Origin Country Receipts/ Forecast
Per Traveler (18/12)

9. Opportunities
Global 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 relationships
within ITA and across agencies will increase efficiency.

10. Risks and Issues
Economic 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.

11. Examples of ITA and Interagency Activities
Webinars with the Travel and Tourism Team
FY12: Australia, China, Germany/France, Japan, Korea, Russia, UK, Travel Forecast
FY13: Canada, Mexico, Taiwan, Brazil, Traditional vs. BRIC markets, Travel Forecast
Promotional and Educational Events
IPW and other trade shows
Working with local CVBs
Industry roundtables
Trade Associations
MDCP Grants
NTA – promote the U.S. in China
Capital Region USA – create marketing partnerships with overseas tour operators to increase hotel bookings
U.S. Travel Association – support meetings and events
Mississippi River Country – attract Japanese visitors to the 10 MS River states

12. Research and Analysis
Summary tables highlighting specific tourism trends
Market and regional profiles
Forecast of international travelers to U.S. through 2018
TINews updates on travel and tourism

13. Travel and Tourism Staff
Isabel Hill
Director
Phone:
Curt Cottle
International Trade Specialist
Phone:
Ron Erdmann
Team Lead, Research
Phone:
Jennifer Kirsch
International Trade Specialist
Phone:
Julie Heizer
Team Lead, Industry Relations
Phone:
Margie Parker
Program Assistant
Phone:
Melissa Bennett
Program Analyst
Phone:
Schermin Smiley
Administrative Specialist
Phone:
Mark Brown
Market Research Analyst
Phone:
John Terpening
Economist
Phone:
Richard Champley
Senior Research Analyst,
Phone:
Claudia Wolfe
Economist
Phone:

14. Industry and Analysis’ Spotlight on Aerospace
July 16, 2013
Prepared by
Office of Transportation and Machinery

15. Aerospace The aerospace industry includes:
Large Civil Aircraft (e.g. Boeing 737)
Business Jets
General Aviation Aircraft (including helicopters)
Aircraft Engines
Commercial Satellites and Launches
Unmanned Aerial Systems
Aerospace Parts
Aerospace Products and Equipment (e.g. NextGen Air Traffic Management)

16. NEI Priority Markets: (Figures based on Year-End 2012)
U.S. Aerospace Exports to Target Markets
(“Green Box” Countries)
European Union $33.2 B
GCC * $12.2 B
China $9.1 B
Japan $9.0 B
Brazil $6.8 B
Canada $6.6 B
Korea $3.9 B
Turkey $2.0 B
Russia $1.7 B
India $1.5 B
South Africa $534 M
*Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and UAE
Source: U.S. Census Bureau

17. Opportunities
In 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:
Aircraft
Spare parts
Maintenance services
Flight simulators
Airport equipment, including air traffic management
U.S. manufacturers are world leading producers of new technologies:
Unmanned systems
Green technologies
Composites
NextGen Air Traffic Management
Communication and imaging satellites
Reform 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.

18. Risks and Issues
Foreign 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).

19. Examples of ITA and Interagency Activities
Supporting Ohio Aerospace Industry’s MDCP
U.S. / Canada Aerospace Summit
Educational 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 Airbus
Support USTDA activities like Latin America Summit
Promote 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 Symposium
Support FAA participation at the UN ICAO meetings
Represent Commerce during drafting of National Space Policies to promote pro-export language
Participate in OECD meetings on aircraft financing
NextGen Vendor’s Guide
U/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)

20. Aerospace Team Staff Scott Kennedy; Aerospace Team Leader
Kim Wells; Commercial Space, Middle East, North Africa, Aircraft Engines, Export Controls
Alexis Haakensen; Aircraft Finance, General Aviation, Sub-Saharan Africa, Asia, Latin America
Fred Elliott (currently away on detail); Large Civil Aircraft, Aircraft Parts, Offsets, Export Control, Aircraft Subsidies, EU, Canada, Japan
Jonathan Alvear; NextGen Air Traffic Management, Aviation Security, Airport Infrastructure
CS Aerospace Team:
Melissa Grosso; Global Aerospace Team Leader
(860)