1. Top International Markets for Native American Tourism
Ron Erdmann
National Travel & Tourism Office
Industry & Analysis, International Trade Administration
September 12, 2017
I am delighted to be back speaking at the AIANTA Conference after turning over the presentation to Julie Heizer in our shop last year.
But, as a native Wisconsinite, it is great to be with you here today.
My focus will be on the overseas travel market to the USA and Indian Country and I hope to show you some data available from our office that AIANTA has been using to focus its efforts in the international travel market.
In the data, I will show you that travelers to Indian Country are very different than the average overseas visitors to the country and by using these differences you too can enhance your efforts and convince others that you have something they want and by working together everyone benefits.

2. National Travel & Tourism Office
Primary POC within the Federal Government
NTTO Website & Publications/Outreach
Research, Key Market Intelligence & National Strategy
Principal Liaison to Brand USA
Represents U.S. Travel and Tourism Policy internationally
NATIONAL TRAVEL AND TOURISM OFFICE
At the U.S. Department of Commerce, National Travel & Tourism Office we continue the work started back in the 1970’s by being the source for international travel data to and from this country.
All of the data you will see today comes from our office from 7 complementary and interdependent research programs provides information on the international travel market to and from the USA.
I hope at the end of this presentation you will provide me with your business card so I can send the presentation to you so you can show other travel businesses what you have is that they want……, and so you can also use this data to show others that travel to Indian Country is part of the total travel experience and only by working together with the other components of the travel industry can you improve your efforts in this market.
In addition to the data, you also need to know our office is the federal liaison to Brand USA ensuring they get the industry matching funds. We also work with our Travel and Tourism Advisory Board and Indian Country’s representative us Sherry Rupert.
We are also working with U.S. government and governments around the globe serving as an advocate for travel and tourism on the inside of government.
I encourage you visit our site and look at the export assistance page of the site to find the latest presentations we have delivered on the international market to this country including presentations on U.K., Germans and Italians interested in Indian Country. Plus, there are articles from us and our federal partners about the governments role in assisting businesses in the travel and tourism industry.

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.
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. Additionally, there are 2 CS specialist here from the U.K. and Italy and they too have a session I would like to encourage you to be part of while at this conference.
I also 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 Develop 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
AIANTA was awarded a MDCP to work on promoting U.K. & Italian travel to Indian Country in 2016
The MDCP is thee only ITA matching funds program that provides assistance to U.S. businesses who want to expand exports, including travel and tourism.
In September of 2016, the Commerce Department awarded an MDCP to AIANTA.
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 have built a great team from within the Commercial Service offices here in the U.S. and abroad, and we’re all excited to work with AIANTA in the implementation of this program.
Together, we hope to be able to work with AIANTA to drive additional international travelers to tribal attractions and businesses, which, of COURSE, we can’t do without you!

5. Travel Trends to the U.S.
Now, I would like to set the stage and talk about total travel to the USA in terms of the number of visitors and what they spend.
Because what happens at the national level does have an impact on you.

6. U.S. Visitors & Spending Trends
Since 2009, the U.S. has enjoyed 6 straight years of record setting total arrivals and spending.
Well, that all changed in 2016 as we saw the first decline since the global recession in The declines in 2016 were partially because of the strong USA dollar and issues in many of our key markets contributed to a slight decline.
Sources: Department of Commerce, National Travel and Tourism Office; Department of Commerce, Bureau of Economic Analysis; Statistics Canada; Banco de Mexico.
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. 2016 Top Origin Markets for Traveler Spending (Exports) to/in the U.S.
Origin of the Visitor
2016 $ in Mils
% change 15/16
% change 07/16
Total Travel Exports
$244.7
-1%
70%
Overseas
$203.7 0%
86%
China (1)
$33.0 9%
588%
Canada
$20.9
-8%
18%
Mexico (1)
$20.2 3%
21%
Japan
$16.1
-7%
14%
United Kingdom
$16.0
-4%
13%
India (1)
$13.6
139%
Brazil
$11.0
-20%
182%
Australia
$8.7
118%
South Korea (1)
$8.6 4%
87%
Here you can see what a difference a year makes. In 2015 only 2 of the above countries posted declines in spending. Now, we only have four markets that continued growing and all 4 set records.
China has been the top travel export market for the USA for the last 3 years and has grown by more than 10% in 12 of the last 13 years.
Canada has been the number 2 market for the last three years and has now posted 3 straight years of declines.
Mexico has 7 years of continual growth whereas Japan has been up and down.
The U.K. had six straight years of growth until last year. India and South Korea have grown every year since 2010.
Brazil had posted continual growth from , but then declined the last 2 years whereas Australia has grown 11 of the last 13 years.
Over the long term, you can see the phenomenal growth of China and from India, Brazil and Australia, and the slower growth of our top markets.
To be successful in the international market you need to be in it for the long term so always keep focused on the long term growth column.
Source: U.S. Department of Commerce, Bureau of Economic Analysis
(1) record year for travel spending in 2016

8. Top 10 International Arrival Markets in 2016
Country of Residence
2016 (Mils)
2015/16 % change
2007/16 % change
Canada
19.3
-7% 9%
Mexico (1)
18.7 2%
29%
United Kingdom
4.6
Japan
3.6
-5% 1%
China (1)
3.0
15%
648%
Germany
2.0
-10%
34%
South Korea (1)
12%
145%
Brazil
1.7
-24%
165%
France
1.6
63%
Australia
1.3
101%
We see a similar situation for the 2016 arrivals. In 2015, only 2 of these markets were down, and in 2016 only 3 markets posted an increase; all set records.
Canada & Mexico dominate as visitor markets to the country.
The U.K. had posted 3 straight years of growth before falling in 2016, whereas Japan has been up and down with very little growth.
China has posted double-digit growth for 12 of the last 13 years. Germany had 6 straight years of growth until the decline last year.
Korea has posted 7 straight years of growth in arrivals, Brazil had grown for 11 straight years before posting declines the last 2 years now.
France had posted 3 straight years of increase before declining last year and Australia had 12 straight years of growth before 2016.
Italy is the 12th largest arrival market for the USA and it too had 3 years of growth before the set back in 2016.
Over the long term, like we saw in spending, we see the same markets with the fastest growth in arrivals and it’s the long term growth you need to remember during the short downturns.
(1) record year for travel spending in 2016

9. Jan-April 2017 arrivals in (000)
Top International Arrivals to the U.S. 2017
Country
Jan-April 2017 arrivals in (000)
% change 2016/2017
2017 Rank in total arrivals
Total Arrivals
22,233
-1%
---
Canada
6,459 8% 1
Mexico
5,395
-5% 2
United Kingdom
1,196
-7% 3
Japan
1,133
-2% 4
China
854 5
South Korea
706
19% 6
Germany
556 7
Brazil
493
-13% 8
France
475 1% 9
Italy
266 7% 12
So, what do we know about 2017 so far. Not as much as we would like. There is only 1 source for international arrivals data for this country and that is the Department of Homeland Security, Customs & Border Protection Office. They are going through an automation of the arrivals data that has not been very smooth.
We just received the April 2017 and year-to-date data and while there are still decline, they are not as bad as last year. We hope that April is the start of the turn around as 14 of the top 20 markets all posted increases.
Note the slowing of China so far this year. After years of increases can it add another?
Brazil is still down double-digits, but we hear will be back in 2018.
On the NTTO website, you can actually monitor the monthly arrivals in 2017 with all the uncertainty around the world, watching the arrivals rates of change will be important so that you are ready to take advantage of the markets when they move back into a growth stage.

10. Visitation Estimates & Traveler Characteristics of Overseas Travelers to American Indian Communities
For the rest of my presentation, I will shift to what we know about overseas visitors to the USA interested in Indian country.
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 share with you some survey research that can be used by AIANTA and the tribes to show that you are part of a much bigger travel experience for our overseas guests and its is critical that you work with others in the industry so that you can capture your share of this market and to show others in the travel industry that you have something they want.

11. Trends in Total Overseas
Trends in Total Overseas * Visitors to American Indian Communities ( )
Let’s start with the big picture. When we look at the overseas totals for visiting Native American Communities when compared to all overseas arrivals there are similar ups and downs as well, because what happens at the national level has a major impact on you.
Since the low point in 2002 and 2003, the trend has been a movement upward for the last 6 years.
The number of travelers visiting Native American sites has increased to set records for the last 5 years, only to dip slightly in 2016 when overseas travel to the USA declined by 2%.
And, overall, you can see its is trending upward.
* Overseas includes all countries except Canada & Mexico

12. Visiting American Indian Communities: Regions of Origin in 2016
Region/ Country of Residence
Visit Amer.
Indian Comm.
2016
(000)
2015/16 % change
Overseas
1,995 0%
Europe
883
Asia
601
13%
South America
149
19%
Oceania/Pacific
104
-47%
In addition to providing the big picture, estimates can also be developed at the regional and country level.
Traditionally, Europe has been the largest market interested in Native Americans. After double digit growth for two years we saw it slow in 2016.
Asia has seen 3 straight years of double-digit growth after a slow year in 2013.
South America saw huge growth in 2013 to surpass the Pacific region for the first time since The region has posted declines for the last 2 years and then grew again in 2016 whereas Oceania as also been up and down.

13. Visiting American Indian Communities: Country of Origin in 2016
Region/ Country of Residence
Visit Amer.
Indian Comm.
2016
(000)
2015/16 % change
Overseas
1,955 0%
China
214
-10%
South Korea
188
44%
United Kingdom
178
-2%
Germany
136 5%
France
134
-18%
Italy 76
-7%
When we look at the top markets considering 2016 was down 2% Indian Country held its own. But, like each year you have certain markets that do well and others who suffer.
This year China declined after it had growth in 5 of the last 7 years from very small numbers in 2010 to jump to the top spot for the last 3 years.
South Korea which was the number 5 market last year had a phenomenal year in 2016 to take over the number 2 spot. But, its growth too has been very inconsistent.
The U.K. which was the top market back in 2010 and 2011, had held the number two spot for the last four years, until it dropped last year.
Germany which had held the number 2 or 3 spot for the last several years also declined in 2013 only to rebound in 2014, then another decline in 2015 and a strong rebound in 2016 when total German travel to the USA was down 10%.
France has held the 3rd or 4th spot for several years posted a double-digit decline causing it to drop another spot.
Italy back in was the 5th largest market for Indian country. It too has fallen in 4 of the last 6 years. That is why it is important to work these markets so you can keep them coming.

14. Visiting American Indian Communities: Country of Origin 2007 vs. 2016
Region/ Country of Residence
Visit Amer.
Indian Comm.
2016
(000)
2007/16 % change
Overseas
1,955
182%
China
214
1026%
South Korea
188
889%
United Kingdom
178
28%
Germany
136
143%
France
134
153%
Italy 76
105%
As you saw with the total travel arrivals data, travel to the U.S. has been up and down over the decades. Declines occur but what is most important is that if you are going to get into the international travel market, you need to be in it for the long term. As you can see here, the growth is over the long term.
If you recall when I showed the top arrival markets to the USA for 2016 and their long term growth rates look at the long term growth for Indian Country.

15. Overseas Travelers to the U.S.
Information Sources & Trip Decision Times by Overseas Visitors to the USA compared to Visitors to American Indian Communities 2016
Information Sources/ Decision Times
Visit Amer. Indian Comm.
Overseas Travelers to the U.S.
Point Change
Airline
41%
44%
-3%
Personal Recommendations
38%
28%
10%
Online Travel Agency
36%
32% 4%
Travel Agency Office
25%
20% 5%
Travel Guides
19%
12% 7%
Decision Timing (days):
Trip Decision:
125 98 27
Airline Booking: 90 73 17
So, how are you going to entice overseas travelers to visit you? Well, you need to understand where they go to make travel decisions. Here we see the importance of airlines in disseminating information to overseas travelers, and that travelers who visit you are not using it as much.
But, for you, providing the traveler with a positive experience is extremely important as travelers interested in Indian really rely upon personal recommendations.
Closely following the personal recommendations is the on-line travel agency so having content on-line for these agents is critical as it can also be used by the brick and mortar agent as well.
Now that you know the relative importance of the information sources used. Another key thing you need to know is that the planning times for travelers who visit you are much longer than the average traveler to the country meaning you have to have your message out much, much earlier.

16. Overseas Travelers to the U.S.
Selected Key Traveler Characteristics Overseas Visitors to the USA compared to Visitors to American Indian Communities 2016
Trip / Party Characteristic
Visit Amer. Indian Comm.
Overseas Travelers to the U.S.
Point Change
Purpose of Trip: Vacation
83%
68%
15%
Purpose of Trip: VFR
33%
30% 3%
# of Nights in U.S.: Mean 26 18 8
# of Nights in U.S.: Median 15 10 5
% 1st-Time U.S.
37%
24%
13%
Visited Only 1 State
40%
73%
-33%
Ave # of Destinations Visited
3.5
2.1
1.4
1+ Night in Hotel/Motel
78% 0%
Earlier I had mentioned that you have certain things that others want…….., so what are they?
Most destinations focus upon attracting the vacation market because business and VFR travelers go to specific places because of their purpose of trip. Vacation travelers go to places that offer what they want. Look at how much higher the vacation shares are. You have the vacation market.
Additionally, look at the long visitor stays. With lengths of stays in the country nearly a week longer, it is far easier to share these visitors when you have nearly one month to share.
Furthermore, unlike all overseas travelers who only visit one state, only 40% do so if they visit Indian Country and when you look at the nearly 4 places they visit while within the country. This too shows you are part of a much larger travel experience and only by working with these other destinations will you see increasing numbers.
Last year, you also saw a large increase in first time travelers to the country. These travelers tend to be very inconsistent in what they do and it may have lead to some of the shifts you saw last year.

17. Overseas Travelers to the U.S.
Top Ports Of Entry by Overseas Travelers to the U.S. & Native American Sites – 2016
Visit Amer. Indian Comm.
Overseas Travelers to the U.S.
LAX – 21%
JFK – 17%
JFK – 16%
MIA – 13%
MIA – 10%
LAX – 11%
SFO – 9%
HNL – 6%
EWR – 5%
SFO – 6%
GUM – 5%
ORD – 5%
ORD – 4%
LAS – 4%
MCO – 4%
HNL – 3%
GUM – 4%
SEA – 3%
4 ports - 3%
To get travelers to your destination, you need to move them from their port of entry to your tribal lands and attractions. Overseas travelers who Visited Native American sites used very different ports of entry than the average travelers to the country. Look at Los Angeles, it was more than twice as likely to generate visitors to Indian Country.
Then, look at the higher shares you have out of San Francisco. In addition, Las Vegas and Seattle are not even on the top ports list for all overseas visitors, but they are for you. So, to get to you, travelers are willing to fly to different ports of entry, but you still need to move them from these ports to you.
One way to move travelers to your area is of course by working with transportation companies.
The ports listed had at least a 3% share of arrivals

18. Overseas Travelers to the U.S.
Transportation Used by Overseas Visitors to the USA compared to Visitors to American Indian Communities 2016
Transportation Modes in U.S.
Visit Amer. Indian Comm.
Overseas Travelers to the U.S.
Point Change
Rented Auto
44%
33%
11%
Airlines between U.S. Cities
40%
29%
Auto Private or Company
37% 4%
City Subway/Tram/Bus
34%
31% 3%
Taxicab/Limousine
32% 1%
Bus Between Cities
24%
17% 7%
As I said earlier, overseas travelers who visit Native American sites tend to visit on average over 4 places while in the country. To do so, they use one of these many modes of transport shown here.
Look at how much higher the use of domestic airlines and rental car firms are in moving travelers to you and the other places they visit. These 2 transport modes are key to getting travelers to you.
When you are looking to convince tribal businesses and others in the travel industry that you need to work together, you can use these numbers to show both the airlines and rental car firms that visitors to they too will benefit if they work with you as well as the other differences you have.

19. Overseas Travelers to the U.S.
Top States Visited by Overseas Travelers to the U.S. & Native American Sites – 2016
1.955 million overseas visitors
37.5 million visitors
Visit Amer. Indian Comm.
Overseas Travelers to the U.S.
California (44%)
New York (27%)
Nevada (35%)
Florida (25%)
New York (29%)
California (22%)
Florida (18%)
Nevada (9%)
Arizona (18%)
Hawaii (8%)
Utah (10%)
Texas (5%)
Hawaii (6%)
Massachusetts (4%)
Massachusetts (6%)
Guam (4%)
Illinois, Guam, & Colorado (5%)
Illinois (4%)
WA / TX / LA / WY (4%)
When we look at where overseas travelers to Indian country visit, take a look at the much higher shares that show up for visitors to California and Nevada. Both have benefited from overseas travelers to Native American sites.
In addition, look at the 6 states show in green. They are not among the top states visited by the average overseas travelers to the country. But, they are among the top destinations visited for travelers to Native American sites.
So, this shows that specific activities can move travelers to different destinations. Use this to your advantage.
* Only states with at least 4% market share are shown

20. Overseas Travelers to the U.S.
Activity Participation Overseas Visitors to the USA compared to Visitors to American Indian Communities 2016
Activities
Visit Amer. Indian Comm.
Overseas Travelers to the U.S.
Point Change
Visit American Indian Communities
100% 5%
95%
Sightseeing
88%
78%
10%
Shopping
86% 2%
National Parks/Monuments
74%
35%
39%
Small Towns/Countryside
61%
27%
34%
Historical Locations
Cultural/Ethnic/Heritage Sites
50%
15%
Amusement/Theme Park
29%
21%
Art Galleries/Museums
49%
28%
Experience Fine Dining
48%
32%
16%
Finally, I talked about how you were part of a very large and active traveler segment.
Look at the huge participation rates for the top activities compared to the average overseas traveler to the USA.
Travelers who visit you are far more active meaning that these businesses too could see this level of participation rates by working with you.
Brand USA is also charged with moving people to rural areas or small towns, and each of these business will benefit more if Brand USA works with you.
So, I want to strongly encourage you to use the high vacation, longer stays, multiple destinations visited travelers you have who also have 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 you all work together each of you may benefit.

21. 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 nearly 40 country, regional & sector profiles available
Forecast of international travelers to the U.S. through 2021 with a new forecast in Oct. 2017
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, and the data we have that could help you.
I have shown you that we saw a slowing in 2016 and it is starting out slow in But, to be successful in the international travel market, you need to understand you are one of many, many things that overseas travelers do. My hope is you will take the long term view and use this data to show other travel businesses that by working with you they too will see more benefits.
I hope you will also book mark and visit the website and you and use it.
Thank you.