1. Update on U.S. Tourism Strategy
Mandala Research

2. Tourism is the #1 Service Export
“Tourism is the number one service we export.”
Tourico Clients:
Thanks to you

3. Travel Promotion Act of 2009
Signed by President Obama March 4, 2010
Establishes an independent nonprofit Corporation for Travel Promotion:
To promote the U.S. to world travelers
To augment USG communications on entry/exit policies
A momentous day in the Oval Office, to be sure. March 4, 2010, marked the signing of the Travel Promotion Act (TPA).
As President Obama was leaving the Oval Office, he said to Secretary Locke , “Gary Locke, be sure you do this right!”
Secretary Locke has been working very hard to ensure that the TPA and the Corporation for Travel Promotion (CTP) are rolled out appropriately, accurately, and expeditiously.
The CTP’s key responsibility is to promote the United States to the world’s travelers and to augment USG communications on entry/exit policies.
Corporation Website:

4. U.S. National Travel and Tourism Strategy
Executive Order on 1/19/12 by President Obama
Created Task Force on Travel and Competitiveness
Called for National Travel and Tourism Strategy
Travel and Tourism Advisory Board was tasked with creating the strategy
Federal Register Notice open for comments through 2/28/12
Dashboard/Metrics
Commerce and Interior to lead on this.

5. (on Number of Arrivals)
Year to Date May 2012: Nine of the Top 20 Countries Registered Double-Digit Increases
Country of Residence
% Growth Rate
Year to Date
May-12
May
Rank
2011 vs
(on Number of Arrivals)
People’s Republic of China excl Hong Kong 43 8
Venezuela 21 16
Argentina 20 13
Brazil 19 6
Colombia 15 17
Japan 14 4
Germany 12 5
South Korea 9
India 11
Source Department of Commerce OTTI

6. Enabling and Enhancing Tourism to the U.S.
Enhancing US visa processing to meet the expected growth in demand
Response:
State Department is adding 50 new consular positions in China and 60 new adjudicators in Brazil in 2012.
State Department investing millions of dollars to expand facilities.
In FY 2013 –
New consulate building in Guangzhou
Establish visa processing at the consulate in Wuhan
Expand other facilities in China to increase interview capacity by more than 50 percent.
The U.S. will establish new consulates in Belo Horizonte and Porto Alegre in Brazil.
Forecasted increase in overseas travelers who REQUIRE a Visa for entry
Forecasted increase in overseas travelers who DO NOT require a Visa for entry
53%
17%

7. Visa Waiver Process is Being Expanded
Expanding the Visa Waiver Program (VWP)
Currently 36 participating countries
July, 2012, Department of Homeland Security announced a Statement of Intent to establish a Visa Waiver Program (WWP) Working Group with Brazil

8. Entry Process Aimed at Improving the Process for Travelers
Expanding Trusted Traveler Programs
Provide expedited clearance for pre-approved low-risk travelers
Over 1M eligible users enrolled in Global Entry Program
Kiosks at 37 sites, reduce inspection staff hours
Expedited screening initiatives and improving the processes for arrivals and aviation security
DHS established Model Ports Initiative in 20 of the busiest airports across the county to improve customer experience during US admissions process
Enhanced Queuing
Improved signs for international visitors
Wait-time monitoring and reporting
Passenger Service Manager Program (PSM)
Training
Communications
Surveying of travelers
Nov 2011 survey found that 90% of travelers had a positive feeling about the US after experiencing the entry process, officers are welcoming and entry process time is short or reasonable

9. Industry has a BIG Role: Travel and Tourism Advisory Board
Who?
Chartered in 2003
30 members in (32 in )
Appointed by the Secretary of Commerce
Represent the diverse nature of the travel & tourism industry
What?
Advises the Secretary on policies and programs that affect the U.S. travel & tourism industry
Offers counsel on current and emerging issues
Provides a forum for discussing and proposing solutions to industry-related challenges

10. A Coordinated Effort
Months of discussion and drafting by TTAB members along with colleagues at a variety of US federal departments produced a blueprint for success

11. Increasing Jobs by Increasing Visitors
This National Travel and Tourism Strategy establishes an overarching goal of increasing American jobs by attracting and welcoming 100 million international visitors, who we estimate will spend $250 billion, annually by the end of 2021.
We will also encourage Americans to travel within the United States and its territories to see all that our country has to offer.

12. These are Several Strategies to ACHIEVE THIS GOAL
Three of the Key Strategies include:
Promoting the United States
Enabling and enhancing travel and tourism to and within the United States
Conducting research and measuring results

13. Promoting the United States – Brand USA
Land of Dreams

14. Helping You Sell the U.S.A. as a Destination
Public/Private Partnership
Multi-Channel Marketing
Television
Web
Print
Digital
Social
Twitter
Facebook
YouTube
Pinterest

15. The Composition of International Visitors is Changing Quickly
The number of overseas travelers from countries whose nationals require U.S. visas increased 34 percent from 2006 to 2011 and is forecasted to increase by 53 percent from 2011 to 2016.
The number of overseas travelers from countries whose nationals do not require visas increased only 26 percent and is forecasted to increase by 17 percent.
In the next five years, countries whose nationals require visas are expected to have the highest growth rates in travel to the United States, including China (+198 percent), Brazil (+70 percent), and Argentina (+46 percent).

16. The Composition of International Visitors is Changing Dramatically
The combined visitation levels of Brazil, China, and India grew 159 percent between 2000 and 2011, while total international arrivals increased 22 percent and total overseas arrivals increased seven percent over the same period. (DOC/OTTI)

17. And USA is Making an Investment To Accommodate This
In anticipation of continued high growth in demand for visas, State Department is investing millions of dollars to expand facilities.
In FY 2013, it plans to open a new consulate building in Guangzhou, establish via processing at the consulate in Wuhan, and expand other facilities in China to increase interview capacity by more than 50 percent.
The U.S. will establish new consulates in Belo Horizonte and Porto Alegre in Brazil.
Bem-vindo à América
미국에 오신 걸 환영합니다
¡Bienvenidos a los Estados Unidos de América!

18. Time is Money: The Less Time, The More Money
Brazil and China are both large markets where visa processing capacity has grown to meet sharply-rising demand.
State is issuing more visas than ever before. In the first six months of 2012, demand for tourist and short-term business visas in Brazil increased 48 percent over 2011, and in China, demand increased by 38 percent.
The State Department is adding 50 new consular positions in China and 60 new adjudicators in Brazil in 2012.

19. Measurable Progress in China and Brazil – Wait Times Decrease.
Wait times for interviews at the five visa granting missions in China have fallen from as long as 100 days in 2010 to current wait times that are typically two days or less. In the first four months of FY2012, the number of visa processed in China grew by 33 percent.
Wait times in Brazil have declined from 100 days to 2 weeks in some locations. Number of Visas processed in 2012 have increased by 62%

20. A REALLY Bright Spot for the US Economy
– up 8% from May This caps 29 straight months of growth.
Miami International Airport is a great example of the increase in international visitors. Table below Source: GMCVB
January – July 2012
January – July 2011
% Change
5,763,799
5,372,053
+7.3%

21. Leaders in International Travel and Tourism Revenue
In 2011, the travel and tourism industry generated $1.2 trillion and supported 7.6 million jobs.
Real travel and tourism spending grew 3.5 percent in 2011, outpacing the 1.7 percent growth rate for the economy as a whole.
The United States leads the world in revenues from international travel and tourism and ranks second in the number of international visitors.
In 2011, 62 million international visitors came to the United States and spent a record $153 billion on U.S. travel- and tourism-related goods and services, which are counted as U.S. exports.
Source Department of Commerce OTTI

22. 1 in 8 American Jobs is Supported by Travel
1 in 8: American jobs (private sector) supported by travel
14.4 million: The total number of American jobs supported by travel
33: The number of overseas visitors that create one American job

23. Tourism Gets U.S. Back To Work
287,300 new jobs
Contributing 7.2 percent of overall job growth since early 2010.
Outpacing other industries in employment recovery.

24. (on Number of Arrivals)
Year to Date May 2012: Nine of the Top 20 Countries Registered Double-Digit Increases
Country of Residence
% Growth Rate
Year to Date
May
2011 vs
May 2012
Rank
(on Number of Arrivals)
Japan 14 4
Germany 12 5
Brazil 19 6
People’s Republic of China excl Hong Kong 43 8
South Korea 9
India 11
Argentina 20 13
Venezuela 21 16
Colombia 15 17
Source Department of Commerce OTTI

25. U.S. Visitors & Spending (1997-2011)
Visitor spending (receipts) closely mirrors visitor volume. Visitor volume was a record 62.3 million, while
spending was a record $153 billion in 2011.
Now to the data. Let’s start with the big picture. As you can see for over a decade plus, the changes in the number of visitors and what they spent to get to and within the country have been up and down.
The U.S. has set records for total arrivals in 2007, 2008, 2010 and 2011.
The country also set records for total spending by international visitors in 2008 and 2011.
In 2009, you can see the dramatic impact the global economic downturn had on the USA. The declines in 2009 were the largest single year declines in visitors and spending the country has ever seen.
Visitor spending increased by more than 10% points in 4 of the last 5 years.
Sources: Department of Commerce, Office of Tourism Industries; Department of Commerce, Bureau of Economic Analysis; Statistics Canada; Banco de Mexico.

26. International Visitors to the U.S. and Projections (2000-2016)
Arrivals in Millions
here is the big picture for travel to the U.S. over the next several year. This forecast was issued in April 2012 and revises downward the October 2011 forecast as have most other forecasting entities.
The blue bars are actual arrivals and the bars in red our the current revised forecast. As you can see, we plan to set new records for total arrivals for the next several years posting 4 to 5 percent growth each year.
This is still in line and actually slightly stronger growth than the United Nations World Tourism Organization forecasts in its latest forecast for global travel. They like us revised downward the forecast for global travel over the next several years, but both of us show growth.
OTTI issues forecast for all arrivals, 10 world regions and 40 countries.
Sources: U.S. Department of Commerce, ITA, Office of Travel & Tourism Industries; Secretaria de Turismo (Mexico); Statistics Canada April 2012 forecast

27. Some of Our Clients 27

28. Insights - Strategy - Results
Mandala Research
Insights - Strategy - Results
Laura Mandala,