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Top International Markets for Native American Tourism with a Focus on 3 European Countries My role in this session is to talk to you about the role of.

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Presentation on theme: "Top International Markets for Native American Tourism with a Focus on 3 European Countries My role in this session is to talk to you about the role of."— Presentation transcript:

1 Top International Markets for Native American Tourism with a Focus on 3 European Countries
My role in this session is to talk to you about the role of Commerce in expanding travel exports, provide some data on the top countries for spending and arrivals. Then, I will share with you some of the research data we conduct that can assist the tribes understand the international travel market to this country who have an interest in what you have to offer. For this presentation I will focus upon the U.K., Germany and Italy and show you how each of these markets is different and how to use these differences to your advantage. Julie Heizer U.S. Department of Commerce International Trade Administration National Travel & Tourism Office January 2017

2 We Serve as the National Tourism Office…
…by advancing policies and programs that strengthen economic development and export opportunities. Publications Research Industry Relations Travel Promotion Act Policy National Travel & Tourism Office First, a little about my office. I work for the National Travel & Tourism Office, or the former Office of Travel and Tourism Industries . We will continue to do all of the things we have done in the past like……. Research……All of the data you see today and much more are from our office. We manage a set of 7 complementary research programs that provide the industry with the most comprehensive data on international travel to and from the country. Industry Relations: The staff also works with industry associations and businesses delivering presentations at conferences, offering webinars, and issuing articles. Our staff also work directly with the travel industry associations or businesses to help them expand travel exports. TPA…..NTTO serves as the liaison to Brand USA. The Secretary of Commerce approves BUSA’s Board, their yearly marketing objectives and all BUSA’s requests for matching funding go through Commerce. [Policy]……We work with U.S. government agencies as well as other governments and world organizations serving as the tourism industry’s advocate from inside the government. So, if you have issues with a policy, rule, and procedure required by a government that hinders you from doing your international business we would like to here about it. [pubs]……Another service is the NTTO website. We have numerous free publications and…… others that are sold that can help you track travel to and from the U.S., and understand the international traveler at the national, sector, regional and destination level.

3 International Trade Administration Travel and Tourism Resources
National Travel & Tourism Office travel.trade.gov Foreign Commercial Service 128 Offices in 75 countries U.S. Commercial Service Domestic Field Offices in more than 100 U.S. cities In order to provide the industry with comprehensive products and services, Commerce uses the Team approach. To do this, we work with a sister agency within the International Trade Administration, the U.S. Commercial Service – now called Global Markets. They have Offices in the United States and around the globe. In each, there are trade specialists available to assist travel and tourism businesses increase international travel to the country. I would encourage all of you to visit the websites listed here and bookmark them to learn more about the products and services they have to help you.

4 Market Development Cooperator Program (MDCP)
The Cooperator Program provides financial and technical assistance from ITA to support projects that enhance the global competitiveness of U.S. industries. Partnership with ITA and non-profit industry groups like trade associations and chambers of commerce. Industry groups pledge to pay a minimum of two-thirds of the project costs on sustainable projects Award Limits: $500,000. Awards up to 3 years Announcements usually made in Feb./March each year. The award is made usually in Sept./October. In September of 2016, the Commerce Department awarded an MDCP to AIANTA. So, for the next 3 years, we will be working with AIANTA and its members to increase international travel to the tribal lands. Within Commerce, we will take that team approach I just discussed and our office will provide the market intelligence and administer the program with AIANTA. We hope to engage a number of the local Commerce Commercial Service officers in the states that have tribes interested in the international market. Abroad, we will be working with the Commercial Service officers in the U.K. and Italy, and of course, not ignore the work accomplished over the years in Germany. Together, we will work with AIANTA to help drive additional international travelers to tribal attractions and businesses and of course we will need your help.

5 Travel Trends to the U.S. First, I want to set the stage by looking at some major trends that are impacting travel to this country. Understanding what has occurred in the past is extremely important because there are some major shifts that are occurring in the international market that mean you need to shift your approach to this market.

6 U.S. Visitors & Spending Trends
When we look at total travel to the country in terms of arrivals and spending, you can see that while we have seen our “ups” and “downs” that since 2003, we have been on almost a steady path to hosting increasing number of visitors and we have benefited from the spending that comes with these travelers. We did see the downturn that the global recession had in 2009, but for the last 6 years we have continued to set new records for arrivals and spending. r Sources: Department of Commerce, National Travel and Tourism Office; Department of Commerce, Bureau of Economic Analysis; Statistics Canada; Banco de Mexico. R = the 2014 arrivals totals were revised in 2015 Note: The Bureau of Economic Analysis revised the definition of travel exports (spending) in 2014 to better align with international standards. In general, this revision increased U.S. travel exports by 20%. The timeline shown includes the revisions back to 1999 and thus represents comparable data.

7 Top Travel & Tourism Export Markets 2015r in $ Billions
Origin Country Travel Receipts Passenger Fare Receipts Total Travel Receipts 2014/ % change 2011/ % change China $27.7 $2.5 $30.2 15% 117% Canada $17.4 $5.3 $22.7 -13% -10% Mexico $16.8 $2.9 $19.7 5% 22% Japan $11.6 $5.6 $17.2 1% 18% United Kingdom $12.9 $3.3 $16.2 12% 21% Brazil $11.1 $14.4 3% 44% India $10.2 $1.6 $11.8 52% Germany $7.2 $1.7 $8.9 8% 35% Italy $3.1 $1.1 $4.3 4% Total Travel Exports $204.5 $41.7 $246.2 31% Here are the top travel and tourism export markets in The passenger fare totals are the dollars spent by international visitors on U.D. air carriers to fly to the USA. The travel spending is the money spent within the country while they are here for business, pleasure or educational purposes. In looking at the U.K. it was one of the top 3 growth markets for spending in Over the last 5 years its growth has not met the 31% growth for all markets. Germany had slightly slower growth, but over the last 5 years spending by Germans are among the top 5 for the countries shown here. Italy had slower growth in 2015 and over the long term, its growth is very similar to the U.K. The other top countries are provided to put these 3 markets in perspective. Record year for travel exports

8 Top Overseas Markets for International Travelers to the U.S. 2015p
Rank Market of Origin Visitors (000) 2014r/15 % change 2011/15 % change -- Total Arrivals * 77,471 3% 23% Overseas Arrivals ** 38,392 10% 38% 1 United Kingdom 4,901 18% 28% 2 Japan 3,758 4% 16% 3 China (PRC) 2,591 138% 4 Germany 2,272 25% 5 Brazil 2,218 -2% 47% 6 Republic of Korea 1,765 21% 54% 7 France 1,753 6% 17% 12 Italy 1,039 8% When we look at the official count of visitors by country of residence using the UNWTO recommended guidelines you can see the top arrivals markets in 2015 in rank order and that several have set records. Again, you can see how the 3 countries we are focusing upon compare. The U.K. is the top overseas market for the country, a position it has held since Last year, the U.K. was tied with China posting the strongest growth in 2015of the top markets. Over the long term is has grown slightly slower than all overseas, but has generated at least 3.7 million travelers to the country annually every year since 1997. Germany also posted double digit growth in 2015, and over the long term its growth is slightly slower than the U.K. It has seen growth for the last 6 years. Italy surpassed the 1 million mark for the first time in It saw growth slightly lower than Germany in 2015 and has posted increases in arrivals 5 of the last 6 years. * International travelers include all countries generating visitors to the U.S. ** Overseas includes all countries except Canada and Mexico. Record year for travel to U.S. 8

9 Top Origin Markets for International Travelers to the U. S
Top Origin Markets for International Travelers to the U.S. January to June or July 2016 Top Countries Jan.-June or July Arrivals in (000) % change 2015/16 Total Arrivals Overseas 18,534 7% Europe 6,648 -5% United Kingdom 2,063 -2% Germany 911 -11% Italy 405 -4% Last month, the NTTO released the January to June 2016 arrivals data. As available from the Department of Homeland Security, we post monthly arrivals from the counts they obtain at all our ports of entry. Through the first 6 months of 2016 Europe overall is down 5% and the U.K. and Italy are not down as much. Germany is down 11% and currency and the economic situation is Europe will make 2016 a tough year for the region.

10 Forecast for International Travel to the United States
In addition to looking at current arrivals and historical data, our office also tries to provide some guidance to the industry on what the future may hold for international travel to the country. Twice a year we revise our forecast for arrivals from all world regions and the top 20 countries. The forecast looks at key economic data and the shifts in arrivals and the US’s share. We use this to project what we think will happen to arrivals and the rates of change over the next 5 years. We update the forecast using the most current data from the International Monetary Fund’s economic forecasts and post the data to the NTTO website.

11 2015 Actual Arrivals & Short-Term Forecast Inbound Travel to the U.S.
Visitor Origin 2015r (000) % Change 2016 (000) 2017 (000) Total Visitors 77,510 3% 76,783 -1% 78,598 2% Overseas 38,392 10% 38,584 1% 40.015 4% United Kingdom 4,901 18% 0% 4,852 Japan 3,758 3,721 China 2,591 3,006 16% 3,457 15% Germany 2,272 2,204 -3% 2,226 Brazil 2,219 -2% 1,842 -17% 1,731 -6% Italy 1,039 8% 1,008 1,019 In October, we had forecast overseas to be up 1%, and the U.K. was seen as posting no growth over 2015 by year end. The U.K. is forecast to continue to have problems in 2017 but will still generate over 4.8 million visitors to the country. Germany was forecast to be down 3% but will need some stronger growth in the second half of 2016 to reach this total. Germany if forecasted to post only slow growth in 2017. Italy was also forecasted to be down 1% in 2016 as well, and the turn around will be slow in 2017 when we forecast only 1% growth. On the NTTO website, for each of these markets and the top 21 arrival countries to the United States you can find a forecast to 2021. By 2021, the U.K. is forecasted to reach 5.3 million visitors and additional 400,000 over 2015. Germany is forecast to only see slow growth through 2021 and will be around 2.2 million by Italy too will see very slow growth, but stay over the 1 million mark each year to 2021. Based upon NTTO’s October 2016 forecast, using the % change for 2016 and 2017 and actual 2015 arrivals

12 Visitation Estimates & Traveler Characteristics of Overseas Travelers to American Indian Communities
For the rest of my presentation, I will share with you the big picture over time for all overseas travelers visiting Native American sites and then talk about the top world regions and countries. Then, I will shift to what we know about the top 3 countries generating visitors to Indian country, and how each of these markets are very different. Then, I will share with you some survey research that can be used by AIANTA and the tribes to show potential partners that working with you in the international market is important as you have something the travel industry wants. I plan to talk about these items and how you can use this to help expand international travel to tribal lands and attractions.

13 Trends in Total Overseas Visitors to American Indian Communities (1996-2015)
In 000s Let’s start with the big picture. When we look at the overseas totals for visiting Native American Communities we see like the country, it has seen its ups and downs. Since the low point in 2002 and 2003, the trend has been a movement upward with yearly shifts in share and volume with equal gains and losses until the last 6 years. The number of travelers visiting native American sites has increased to set records for the last 5 years. The shares have been up and down, but only slightly to almost see 2 million overseas visitors in 2015. Overseas includes all countries except Canada & Mexico

14 Visiting American Indian Communities: Country of Origin 2014r vs. 2015
When we look at the top markets, 2015 was another very good year for all of the countries except Germany, which was the bright spot last year. The U.K. which was the top market back in 2010 and 2011, has held the number two spot for the last four years. The U.K. now has 2 straight years of double digit growth after the decline in 2013. Germany which had held the number 2 or 3 spot for the last several years also declined in 2013 only to rebound as well in 2014, but another decline in 2015 has caused the market to decline to the 6th spot in 2015. Italy is the next largest market following Germany and saw tremendous growth in You will hear from our Commercial Service officer in Italy today. Back in , this market was in the 5th largest market for Indian country. It too has fallen in 3 of the last 5 years, until posting the strong growth last year. That is why it is important to work these markets so you can keep them coming, and the work in the market last year really paid off. One way to keep travelers coming and reduce the huge swings in visits is through partnership, and as I show you in the next several slides you will learn that you have what others destinations and visits want from their visitors. So, you will need to use these strengths to your advantage to leverage getting the industry to work with you, but you too must be willing to work with others. r = revised arrivals to USA totals which impact visitation figures for 2014 as well

15 Information Sources & Trip Decision Times for 3 Countries Visiting American Indian Communities 2015
U.K Germany Italy Airline 51% 43% 37% Online Travel Agency 39% 42% 29% Personal Recommendation/Friends 24% 35% 28% Travel Agency Office 22% 34% Travel Guides 19% 30% 15% National/State/City Tourism Office 6% Advance Trip Decision Time (Mean) 171 168 133 So, let’s talk about partnerships. One partner you will need is the travel trade starting with the sources of information international travelers use to make their trip decisions. You need to start by developing airline partnerships as they are the number one source used by all top 3 markets, and I would start in the U.K. as it is the largest source among the top 3. Working to get the online travel agencies familiar with what you offer is the next important partner for the U.K. and Germany, and it was ranked 3rd for Italy. Providing a quality experience is extremely important as personal recommendations from friends is the 3rd most important source used and especially with Germany. The brick and mortar travel agencies are most important in Italy and Germany. For Germany, you need to be working with more of each of these sources as they have the highest use for 4 of the 6 shown. When it comes to placing your message the U.K. and Germany have the longest planning time, so you message needs to be out there much further than it does for Italy.

16 Selected Key Traveler Characteristics for 3 Countries Visiting American Indian Communities 2015
U.K. Germany Italy Some other key pieces of information you also need to know about each country can be seen here. Again, the differences in the market will mean different partners and approaches to attract these visitors to your sites. The package market is key in Italy. Plus, generating visitors from this market is even harder because look at the first time visitor numbers. With 40% of the travelers coming to the country for the first time, you have a much heavier burden in educating these visitors on the country. In contrast, the U.K. has very few first time visitors and you need to be leery of the “been there, done that syndrome” and show the U.K. the many differences among the tribes. Purpose of trip is also a key thing to understand as well. Having leisure travelers makes it far easier to get them to your sites and other travel businesses interested in the leisure market will be key partners for you like the state and city tourism offices. Here Italy leads, but all have very high leisure purpose of trip totals. Another key traveler characteristic you have in your favor to help you generate partnerships is the longer stays you have for each of the markets in Indian Country than when they come to visit for other reasons. With stays of 6 to 12 days longer, there is plenty of days to share these visitors with others. Another reason you will need to share is that travelers to Indian country visiting 2 or more states and nearly or 4 destinations. So, with these very mobile travelers you will need to work with more partners to provide the visitor with the experience they want. Plus, the number of destination visited figure is nearly or over double that of the average traveler so this too is a competitive advantage for others to work with you.

17 Top Ports of Entry by Overseas & U. K
Top Ports of Entry by Overseas & U.K. Travelers to Native American Sites – 2015 Las Vegas (LAS) – 16% Los Angeles (LAX) - 14% New York (JFK) – 14% Newark (EWR) – 8% San Francisco (SFO) – 7% Chicago (ORD) – 6% Atlanta (ATL) – 5% Seattle (SEA) – 4% Miami (MIA) – 3% Overseas Travelers To Native American Sites - Top Ports Los Angeles (LAX) - 24% New York (JFK) – 15% Miami (MIA) – 10% San Francisco (SFO) – 9% Chicago (ORD) – 5% Honolulu (HNL) – 4% Atlanta (ATL) – 3% Newark (EWR) – 3% Agana, Guam (GUM) – 3% U.K. Travelers to Native American Sites - Top Ports * So, how do you get them to your sites? Well another partner you can work with is the airport. International airports are aggressive at trying to attract international arrivals and are willing to let them visit other places as that expands their catchment area or sphere of influence. Again, you will need to understand each market as they enter the country at different ports than the average traveler to the USA and when we look at the top 3 countries compared to all overseas travelers to Indian Country you find differences as well. Look how much more important Las Vegas is for the U.K. It is not even one of the top 10 ports. Seattle also shows up as a top port for the U.K. but not for all overseas travelers.

18 Top Ports Of Entry by German & Italian Travelers to Native American Sites – 2015
New York (JFK) – 33% Los Angeles (LAX) – 21% Miami (MIA) – 11% San Francisco (SFO) - 7% Charlotte (CLT) – 6% Chicago (ORD) – 5% Atlanta (ATL) – 5% German Travelers to Native American Sites - Top Ports * Los Angeles (LAX) - 18% San Francisco (SFO) – 13% Miami (MIA) – 12% New York (JFK) –9% Chicago (ORD) – 9% Atlanta (ATL) – 6% Philadelphia (PHL) – 4% Newark (EWR) – 4% Denver (DEN) – 4% Italian Travelers to Native American Sites - Top Ports * For Germany, San Francisco, Miami, Chicago, and Atlanta, all have higher shares for German visitors to Indian country than they do for all overseas visitors. Philadelphia and Denver are not among the top 10 ports for all overseas travelers, but they are Germans to Indian Country. For Italy, you have JFK, and Atlanta showing up with larger shares for visitors to Indian Country than it does for all overseas visitors and Charlotte shows up as a top port of entry for Italian visitors to Indian Country but not for overseas. But, just because they used this port to enter the country does not always mean they visit there, Remember the 4 destinations visited figure. These travelers are very mobile. So, again, by working with the states and cities tourism offices can lead you to contacts at the airports. * Only ports with at 4% market share of visitors to Native American sites are listed

19 Transportation Used by 3 Countries Visiting American Indian Communities - 2015
Mode of Transport U.K. Germany Italy Now that you know where they enter, how do you move them from their port of entry to your area of the country? This is your next partner, the transportation companies. Here again, if you visit the NTTO website, we post the overseas profiles on-line and each of the 3 top countries can be seen as well. If you were to look at this data, you would again find that travelers to Indian Country are different than the average travelers to the USA for each of your top 3 markets. Auto rental firms would be key partners for you in Germany and the Italy. and even developing partnerships with bus companies could be a sound strategy in Italy, and Italy tops the use in 4 of the 6 categories. Domestic airlines become your top partner for Italy as these travelers are very willing to hop on another flight to reach the 3-4 destinations they will visit plus it also makes longer distances from their port of entry far more possible. Working with the local citizens who are visited by U.K. visitors can also net you travelers who visit their friends and relatives and have access to a private car to visit. But, because of the differences in each of the 3 countries, you again will need to tailor your approach to be successful.

20 Top States Visited by Overseas & U. K. Travelers to the U. S
Top States Visited by Overseas & U.K. Travelers to the U.S. & Native American Sites – 2015 Overseas Travelers To Native American Sites - State Visited* California (44%) Nevada (33%) New York (27%) Florida (20%) Arizona (15%) Utah (9%) Hawaii (8%) Illinois (5%) Massachusetts (5%) Texas (5%) Washington State (5%) Louisiana (4%) U.K. Travelers to Native American Sites - Top Ports * California (41%) Nevada (39%) New York (24%) Arizona (21%) Utah (12%) Florida (11%) Washington State (6%) New Mexico (6%) Illinois (5%) Tennessee (5%) Massachusetts (5%) Earlier I talked about partnering with the state and city tourism bureaus. On the NTTO website we report the top states and cities visited by all overseas. What you will find is that travelers to Indian Country are again different than the average travelers to the country and by using these differences when your market share is higher should help you get the attention of these offices. For the U.K., the states listed in green saw their share of travelers increase by 2 times or more than their share for all U.K. travelers to the country meaning visits by travelers to Indian Country helped drive up these states market shares for visitors. * Note: trip information is collected separately for destinations visited while in the U.S. and activities. Thus, visitors to a state may not have visited a Native American site in that state.

21 Top States Visited German & Italian Visitors to the U. S
Top States Visited German & Italian Visitors to the U.S. & Native American Sites – 2015 German Travelers to Native American Sites - State Visited* California (50%) Nevada (36%) Arizona (30%) Florida (21%) Utah (21%) New York (15%) Colorado (7%) Georgia (6%) Illinois (6%) Washington State (5%) North Carolina (5%) Texas (5%) Italian Travelers to Native American Sites - State Visited* California (56%) Nevada (45%) New York (37%) Arizona (26%) Utah (22%) Florida (16%) Colorado (7%) Wyoming (6%) Tennessee (6%) Louisiana (5%) Illinois (4%) Likewise for the Germany and Italy. The states listed in green saw there share of visits almost 2 or more times higher for travelers to Indian Country than it was for all travelers from these two countries to the USA. So, it shows Indian country can have an impact and for the states in green, you will hopefully have a better chance for partnerships as your visitors have helped the state increase its shares. * Note: trip information is collected separately for destinations visited while in the U.S. and activities. Thus, visitors to a state may not have visited a Native American site in that state.

22 Activity Participation for 3 Countries Visiting American Indian Communities 2015
Activities U.K. Germany Italy Finally, here is the biggest leverage point you have in obtaining partners and showing the potential impact of working together. Because of the longer stays, higher share of leisure visitors and the many places they visit, if you compare the average travelers from these countries to the figures shown in this table, you will see for certain activities, higher participation rates as well. These are your local business partners as travelers to Indian country also do these things in addition to visiting you. For the U.K. and Germany, they each have the top participation rates for 5 of the activities listed here. And, if you ranked the other 2 markets you would see difference in what they do. These differences are what you need to use to generate visitors to your area. So, the bottom line is you can use the high vacation, longer stays, multiple destinations visited and the ability to bring people to different destinations using the multiple modes of transport and activities are your key messages to the travel industry. You have what they want and if they partner with you, they too may benefit. * New Activity categories starting in 2012

23 Includes International Travel Research Online
The Quickest Way to U.S. International Tourism Information: Includes International Travel Research Online Order, read, download & print the latest statistics on international travel to and from the U.S. All of the latest summary tables highlighting specific tourism trends More than 30 plus market and regional profiles available Forecast of international travelers to the U.S. through 2021 Information on NTTO’s eight ongoing market analysis (research) programs Updated monthly statistics on arrivals and departures Late-breaking TI News announcements and information releases Links and information on the Commerce, Commercial Service Travel & Tourism Team in the USA & Abroad Links to other organizations in the travel industry Sign up for TINews, NTTO’s FREE news service, for the latest in tourism industry news and program updates So, I want to thank you for allowing me to talk about some of the products and services available from Commerce, show you some of the latest trends in arrivals, spending and traveler characteristics data that can be used to help you in the market. I hope you will book mark and visit the website. It will take you to the best source for international travel data. To be successful in the international markets requires a commitment and planning, and what?…..Partnerships. Hopefully, we can be part of that. Thank you.


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