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TARGET MARKET: USA MARKETING STRATEGIES FOR TOURISM DESTINATIONS A COMPETITIVE ANALYSIS Marketing Strategies For Tourism Destinations A Competitive Analysis Target Market - USA A report produced for European Travel Commission (ETC) by Tourism Development International Brussels, 2014 Marketing Strategies for Tourism Destinations. Target market: USA Published and printed by: European Travel Commission Rue du Marché aux Herbes, 61 1000 Brussels, Belgium Website: www.etc-corporate.org Email: [email protected] This report was compiled and edited by: Tourism Development International on behalf of the European Travel Commission. The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the European Travel Commission concerning the legal status of any country, territory, city or area, or of its authorities or concerning the delimitations of its frontiers or boundaries. Cover photo: City of Chicago. Aerial view of Chicago downtown at twilight from high above; Copyright: Andrey Bayda Copyright © 2014 European Travel Commission. ISBN No: 978-92-95107-04-5 Marketing Strategies for Tourism Destinations. Target market: USA Contents Forewordi Introduction1 a. Defining the Competitive Environment for Destination Europe 2 b. Destinations in the Global Market Place: a Comparative Analysis2 Summary of United States Market Study10 1. The United States Outbound Travel Market15 1.1. A Recovering Market15 1.2. United States Tourism to Europe 18 1.3. Characteristics of the United States Traveller21 1.4. Drivers of Growth25 1.5. Successful Destination Strategies27 2. Travel Destinations in the United States Outbound Market29 2.1. Visa Regimes29 2.2. Air Connections31 2.3. Political, Economic and Socio-Cultural Links35 2.4. Consumer Assessment (TripAdvisor)37 3. Profile of Europe’s Main Competitors in the United States 39 3.1. Destination Marketing Organisations39 3.2. The Australian Tourism Sector40 3.3. The Brazilian Tourism Sector46 3.4. The People’s Republic of China Tourism Sector 50 3.5. The South African Tourism Sector55 3.6. United States Cities Tourism Sector61 3.7. Conclusions78 4. Marketing Strategy and Activities of Tourism Australia and South Africa Tourism 80 in the United States 4.1. Tourism Australia’s Marketing Strategy and Activities in the United States 80 4.2. South Africa Tourism Marketing Strategy and Activities in the United States86 5. Key Factors in Destination Marketing in the United States88 5.1. Market Perceptions88 5.2. Marketing Performance and Opportunities90 Appendices93 Appendix 1 European and Competing Destinations WEF TTCI and Bloom 94 Country Brand Rankings 97 Appendix 2 Weekly City-to-City Flights from Main United States Centres Appendix 3 TripAdvisor Ratings 101 Bibliography and References103 Appendix 4 Marketing Strategies for Tourism Destinations. Target market: USA Acknowledgments This report was prepared by Peter Mac Nulty and Robert Cleverdon of Tourism Development International on commission to the European Travel Commission (ETC), and was carried out under the supervision of Ms Valeria Croce, Head, Research and Development Department at ETC. The report is part of a series of fact-finding reports on the tourism strategy developed by destinations competing with Europe in select long haul markets. The project was realised as part of the European Commission and ETC joint initiative “Destination Europe 2020”. We would like to acknowledge the support and contributions of the many ETC members, marketing organisations and tour operators associations who contributed to the realisation of this report. We also gratefully acknowledge the support of ETC partners, who committedly contributed to the realisation of this project. A special note of thanks to Mr Charlie Ballard, Director of Advertising Research at TripAdvisor, Mr Xu Jing, Regional Director for Asia and the Pacific at UNWTO, and Mr Daniel Velasco, Consultant at Amadeus Travel Intelligence Unit, for their contributions. Marketing Strategies for Tourism Destinations. Target market: USA Foreword In an increasingly vibrant landscape, marked by new players, technological innovation and rapidly changing consumers, the need arises for European destinations to closely monitor others’ effort to win market shares in the global tourism market. This compilation of best practice examples in tourism and promotion strategies is meant to provide insights relevant to ETC and its member countries through a better understanding of the environment in which they operate. This series of reports provides insights into the strategic vision and the operational actions tourism destinations worldwide are developing to attract an increasing number of visitors from the most promising source markets. This fact-finding research offers a bird’s-eye view of the competitive environment, and a portrait of the tourism strategy and marketing activities of competing destinations. References to official documents and publicly available reports facilitate access to detailed information, for those interested in achieving a higher level of knowledge. For Europe’s strongest competitors, portraits are enriched with first-hand information gathered through personal interviews with NTOs marketing directors, representatives of the travel trade and experts. The common structure of reports facilitates cross-market comparisons. Key results are synthesised in a highly visual executive summary, conceived for dissemination to the public at large. We trust these reports will become for ETC and its members an important tool to identify key opportunities and challenges, and to strengthen their comparative advantage in the global tourism market. Executive Unit European Travel Commission i Marketing Strategies for Tourism Destinations. Target market: USA Introduction This report’s aim is to collect meaningful knowledge about the tourism strategy of destinations competing with destinations in Europe in select long haul markets. This study is part of a series of publications, which offer an overview of the environment, in which European tourism destinations operate, and a profile of the tourism strategy and marketing activities of competing destinations. A listing of official documents, publicly available reports and media features is provided in an appendix and through the footnotes to permit more detailed examination of the information presented and issues raised. Each report also provides first-hand information on a selection of competing destinations, gathered through interviews with NTOs’ marketing directors, travel trade and experts. This project focuses on countries competing with European destinations in high potential long haul markets, namely Brazil, Canada, China, Japan, Russia and the United States. In this analysis, Europe is defined as the 33 countries which are members of the European Travel Commission plus France, the Netherlands and the United Kingdom. The analysis followed a three step approach. The first step was to identify the key markets for Europe and the primary destinations competing with Europe in those markets. These markets are presented in Figure 1. The second step consisted of assessing strengths and weaknesses of destinations, which are significant competitors to Europe in the six target markets. The assessment has been based on the following indicators: • • • • • • • • the World Economic Forum Travel and Tourism Competitive Index (WEF TTCI), travel trade interviews and expert opinion, visa regimes and other visitor entry requirements, air connectivity and capacity, price competitiveness, political, economic and socio-cultural links, destination tourism development policy, destination tourism marketing strategy. The third step consisted of identifying those destinations which are the strongest competitors for Europe in each market, i.e. destinations which attract significant volumes of travellers and are actively investing in increasing their share in the market. A detailed profile of the organisations in charge of promoting inbound tourism to these destinations has been compiled. Information about the strongest competitors has been collected by the means of personal interviews as well as from secondary sources. 1 Defining the competitive environment for Destination Europe Marketing Strategies for Tourism Destinations. Target market: USA a. Defining the Competitive Environment For Destination Europe Experts from the European Travel Commission (ETC) Executive Unit, Market Intelligence Committee and Operation Groups, as well as experts from Tourism Development International (TDI), were involved in a two-stage process to define the competitive environment, in which European destinations operate. In the initial stage, those long haul markets which show the best prospects for Europe as a tourism destination were identified. Based on a compound analysis of the relative importance of, and growth prospects for a large number of markets, six were identified as priorities for Destination Europe. The experts were then asked to list countries which are actively targeting those markets as tourism destinations. These competing destinations are defined as countries which are currently investing in tourism promotion and which already receive considerable volumes of tourists from the selected markets. The outcome of experts’ evaluation of the competitive environment is reported in Figure 1. Figure 1: Market: Destination Pairings Markets Brazil Canada China Japan Russia United States Competitor 1 2 3 4 USA Mexico Australia Russian Federation 5 6 7 USA /USA Mexico large cities China South Africa USA Australia Russian Federation Rep of Korea Thailand Malaysia New Zealand USA Rep of Korea Thailand Malaysia Egypt China Dubai United States Thailand China Brazil Australia USA large cities South Africa b. Destinations in the Tourism Global Market Place: a Comparative Analysis An overall assessment of the comparative resources and capabilities of the selected destinations was undertaken based on publicly available international indicators, which monitor aspects crucial to determine their strength and weaknesses as tourism destinations. Factors and policies conducive of travel and tourism development The World Economic Forum Travel and Tourism Competitiveness Index (WEF TTCI) provides a broad assessment of a large number of characteristics and features that facilitate the development and functioning of tourism in a country. The survey assembles results for 79 pillars under three main “sub-indexes”: 1. Travel & Tourism Regulatory Framework, 2. Business Environment & Infrastructure, 3. Travel & Tourism Human, Cultural and Natural Resources. 2 Marketing Strategies for Tourism Destinations. Target market: USA These illustrate the relative success of destinations in creating conditions to attract investment in tourism development. Figure 2 shows the ranking of the 13 destinations according to each of the sub-indexes and relative to each other. The rankings in columns i to iv are based on a total of 140 countries worldwide included in the WEF TTCI survey. The rankings in column v are within the set of 13 competitor destinations. Figure 2: WEF TTCI Rankings of Competing Destinations, 2013 Country Competitiveness Subindex Travel & Tourism Regulatory Framework Travel & Tourism Business Environment & Infrastructure Travel & Tourism Overall Human, Cultural Ranking & Natural Resources Ranking within 13 Competing Destinations (i) (ii) (iii) (iv) (v) Australia 23 25 4 11 2 Brazil 82 76 12 51 10 China 71 63 13 45 9 Dubai (as UAE) 45 9 35 28 5 Egypt 86 77 84 85 13 Rep of Korea 38 17 20 25 4 Malaysia 55 41 17 34 6 Mexico 83 61 15 44 8 New Zealand 4 12 22 12 3 Russian Federation 92 46 58 63 11 South Africa 81 59 57 64 12 Thailand 76 44 23 43 7 United States 44 2 1 6 1 Source: TDI analysis of WEF TTCI report At a country level, European destinations (both ETC member countries and other countries in Europe) occupy the top positions of the WEF ranking - see Figures 24 to 27 in Appendix 1. The leading five positions in the overall ranking are European i.e. Switzerland, Germany, Austria, Spain and the United Kingdom. A further three European countries are placed in the band of 6th to 15th (i.e. France, Sweden, the Netherlands), and 15 rank in the top quarter up to 35th place. Six of the 13 competing destinations examined in the study achieved a ranking in the top quarter of all destinations worldwide i.e. the United States 6th, Australia 11th, New Zealand 12th, Republic of Korea 25th, Dubai (based on the data for the UAE as a whole) 28th and Malaysia 34th. 3 Marketing Strategies for Tourism Destinations. Target market: USA Figure 3 shows the overall ranking position for four European countries (France, Italy, Spain and the United Kingdom), selected as benchmarks, and the 13 competing destinations. The comparative analysis of the resources and capabilities of the 13 destinations identified as competitors at sub-index level (see Appendix 1) suggests what follows: High ranking: United States, Australia and New Zealand. These countries show strengths in the following areas: • • • New Zealand in respect of its travel and tourism regulatory framework, the United States for the travel and tourism business environment and infrastructure, and for travel and tourism human, cultural and natural resources, Australia for travel and tourism human, cultural and natural resources. The United States fares less well in respect of the travel and tourism regulatory framework, and lower rankings (though still in the top 25 globally) are recorded by Australia in respect of the business environment and infrastructure, and the regulatory framework, and by New Zealand for human, cultural and natural resources. Mid ranking: Republic of Korea, Dubai (UAE), Malaysia, Thailand, Mexico, China, Brazil. Six of these seven destinations, the exception being Dubai, score more highly than their overall ranking in respect of human, cultural and natural resources. The weaknesses for this group of destinations are in the regulatory framework (i.e. Mexico, Brazil, Thailand, China) and the business environment and infrastructure (i.e. Brazil, China, Mexico). Mid-to-low ranking: Russian Federation, South Africa. Both countries’ rankings are pulled down by their low assessment in respect of travel and tourism regulatory framework. In the case of South Africa, this is due to low performance on safety and security, and health and hygiene; while for the Russian Federation, the weaknesses are more widespread across four of the five pillars in the sub-index. Low ranking: Egypt. Its weak positioning reveals in each of the three sub-indexes suggests that this destinations doesn’t have an overall comparative advantage in respect to destinations in Europe, but may be attractive in specific markets and segments. 4 Marketing Strategies for Tourism Destinations. Target market: USA Figure 3: WEF TTCI Overall Rankings Source: WEF-TTCI, 2013, 140 destinations Another competitive edge for destinations is the value of their tourism offer. While the perceived value of tourism services is a subjective construct that varies across markets, segments and experiences, an assessment based on standardised indices can highlight destinations’ comparative advantages related to cost-related aspects. The WEF TTCI survey examines components that impact on price levels at a destination, including taxes levied on ticket sales, airport charges and fuel costs, as well as general taxation levels. The overall price competitiveness of destinations is derived from these five factors. The WEF TTCI also provides a hotel price index, as a proxy of price competitiveness from a consumer perspective. The WEF TTCI’s rank order in terms of overall travel and tourism price competitiveness and the hotel price index for destinations competing with Europe are shown in Figures 4 and 5. It found that Malaysia and Thailand are the most price competitive destinations, although the United States fares well on hotel prices; Australia is the least competitive destination in terms of prices. By comparison, all European destinations are in the lowest tercile (ranked 100th or lower), largely because of travel and fuel taxes. They are more competitive in respect of hotel prices, with Spain featuring 42nd and the United Kingdom 53rd while other European countries score less well, ranging from the Baltic states of Lithuania, Latvia and Estonia (all in the top 12 of hotel price competitiveness) to Switzerland, Serbia and France all ranked worse than 100th in respect of hotel prices. See details in Appendix 1. 5 The value of tourism products across destinations Marketing Strategies for Tourism Destinations. Target market: USA Figure 4: Destination Travel & Tourism Price Competitiveness: 13 Primary Competitors to Europe Source: WEF-TTCI, 2013, 140 destinations Figure 5: Destination Travel & Hotel Price Competitiveness: 13 Primary Competitors to Europe Source: WEF-TTCI, 2013 6 Marketing Strategies for Tourism Destinations. Target market: USA The rating of a country as a brand in the perception of prospective visitors is an important travel decision making criterion in respect of choice of destination. The impressions created in the minds of consumers in travel markets around the world are created through a large number of influences. The Bloom Consulting Group in its annual Country Brand Ranking1 identifies four variables as contributing to a destination’s image and thereby establishing its tourism brand rankings i.e. • • • • tourism economic receipts and growth (a first indicator of a country’s appeal), the destination products and experiences researched online (measuring its online appeal), the country’s brand strategy (assessing the accuracy and effectiveness of its communication efforts), official website and social media performance. The results of the 2013 Country Brand Ranking of 187 countries and territories are outlined in Figure 6. It shows that the United States has the strongest tourism brand followed by Thailand, Australia, China, Malaysia, the Republic of Korea and Mexico which all feature in the top 20 destinations. None of the 13 primary competitors to Europe across the six selected markets is ranked lower than 42nd (Brazil). Nine European countries are ranked in the leading 20 destinations, led by Spain, France, the United Kingdom and Italy. Full details for all European countries are presented in Appendix 1. Figure 6: Country Tourism Brand Ranking: Primary Competitors to Europe Source: Bloom Country Brand Ranking Tourism Edition 2013 1 Bloom Consulting Country Brand Ranking Tourism Edition 2013. http://bloomconsulting.com/sites/default/files/files/Bloom_Consulting_Country_Brand_Ranking_ Tourism_2013.pdf 7 Country Brand Rankings Marketing Strategies for Tourism Destinations. Target market: USA The competitive strength of any country as a tourism destination is a combination of many factors, some of which are fixed or otherwise factual while others are subject to the influence of both product developments and marketing and promotional activities. No destination is outstandingly strong or weak across all parameters. The strongest individual destination is the United States, rated as having the leading tourism brand and achieving 6th place in the global WEF TTCI survey of all tourism development factors (behind five European countries). The power of strong tourism industries combined with market-driven tourism product/experience development and well-targeted marketing is illustrated by comparing rankings on the WEF TTCI broad tourism development and facilitation survey (that does not take account of destination marketing) and the Bloom Consulting Group destination brand ranking (which features destination marketing elements as a key criterion). This is borne out particularly in the cases of Thailand, China, Malaysia, Mexico, Egypt, South Africa and the Russian Federation where weaknesses in either or both of the regulatory framework, and business environment and infrastructure, may be compensated for by price advantages and the appeal of the countries’ tourism product offering. Figure 7: Country Tourism Rankings Country Bloom Country Brand Ranking Overall WEF TTCI Ranking 1 6 8 10 15 18 19 22 25 28 30 38 42 6 43 11 45 34 25 44 85 28 64 63 12 51 2 3 4 5 7 11 14 4 2 7 5 26 3 1 Europe’s Competitors United States Thailand Australia China Malaysia Rep of Korea Mexico Egypt UAE - Dubai South Africa Russian Federation New Zealand Brazil European Benchmarks Spain Germany France United Kingdom Italy Austria Switzerland Sources: WEF TTCI survey, and Bloom Country Brand Ranking Tourism Edition 2013 8 Marketing Strategies for Tourism Destinations. Target market: USA Information Note - Exchange Rates The monetary values quoted in the report are taken from the sources referenced, including amounts stated in the source document in US dollars. In all cases, conversion has been made to Euros. The conversion rates used are the average rates across the year between the local currency (or US dollar where that is the currency stated in the source document) and the Euro for the year of the data. For future forecasts/targets, the rate between the local currency and the Euro as at June 2014 have been used. 9 Summary of USA Market Study Marketing Strategies for Tourism Destinations. Target market: USA OUTBOUND TRAVEL PERFORMANCE AND PROSPECTS KEY DEMOGRAPHIC AND ECONOMIC DATA 20132 Population 316.3 mn GDP Data US$ Current Prices 16.8 tn €12.4 tn GDP PP per capita Current Prices Int$ 53,101 €39,330 USA’S PERFORMANCE IN INTERNATIONAL TOURISM United States outbound travel 62 mn in 2013 United States citizens are the second highest spenders on international travel 2004-2013 up 1.4% 2nd place behind China Virtually 0 growth in outbound trips Over half are cross-border trips to Canada and Mexico by the UNWTO United States citizens’ spending on international travel (excluding international transport) Overseas trips taken by United States residents by air (i.e. excluding land crossings to Canada and Mexico) 29 mn in 2013 US$ 104.7 up 4.3% on 20123 up 1.8% bn €78.8 bn in 2013 OUTBOUND DESTINATIONS VISITED BY USA RESIDENTS Over 50% of US outbound travel is to neighbours Canada and Mexico Destinations receiving 1mn in 2012 Europe - United Kingdom - France - Italy - Germany - Spain arrivals Other Countries - Jamaica - Dominican Republic - China - Bahamas - India A weak performance for Europe as a whole 2 3 World Economic Outlook Database, October 2013, IMF. UNWTO World Tourism Barometer, Volume 12, Statistical Annex, August 2014. 10 Marketing Strategies for Tourism Destinations. Target market: USA GROWTH DRIVERS The performance of the United States economy and the consequent impact on consumer confidence. The impact of destinations’ use of digital technology and social media in promotions. PURPOSE OF VISIT Consumers’ perceptions of how well destinations can fulfil the needs of different market segments, leading to how high United States travellers in those segments rank a destination on their list of future places to visit. TRAVEL ARRANGEMENTS 47% 49% 29% 21% 15% 16% 5% 14% Personal Independently Partially or fully guided trip VFR Business Cruise Education All-inclusive resort OUTBOUND TRAVEL AND COMPETITIVE ENVIRONMENT Success in the United States outbound tourism market will be achieved by destinations that cater for the increasing numbers of United States visitors placing a high priority on a deep, authentic and self-fulfilling experience from their chosen destination. Such destinations will offer travellers value-for-money, interesting and diverse experiences, and unique tourism products, This will require attention to be paid to: 1. Creating and sustaining the image in the market of an “aspirational destination”, 2. Creating a set of tourism products/experiences that have diversity and authenticity, with the opportunity for active participation – all geared to providing a meaningful and fulfilling trip as increasingly demanded by the United States traveller, 3. Extensive investment in, and highly effective use of, online/digital and mobile technology, online advertising and social media marketing, 4. Making it easy to obtain information on the destination, and for that information to be personally relevant to each potential visitor; and making it easy to book – e.g. through digital linkage, 5. Addressing concerns about prices, safety and ease of travel – all of which can be addressed through digital technology, 6. Facilitating the ready availability of different components of the destination so that: combined business and leisure trips can be created and undertaken; and multi-generational travel can be further stimulated – again, predominantly, through online means. Europe’s primary competitors across all aspects of tourism according to the WEF TTCI are other industrialised nations e.g. United States, Australia, New Zealand, Republic of Korea, In terms of overall price competitiveness in travel and tourism, European destinations are perceived as among the world’s most costly. 11 Marketing Strategies for Tourism Destinations. Target market: USA PRINCIPAL COMPETING DESTINATIONS All four overseas destinations are making major efforts to support and increase the competitiveness of their travel and tourism industries by: 1. Stressing the authenticity of their natural and cultural heritage in developing brand images and positioning. This approach is used effectively by both Australia and South Africa in the United States market through television programme sponsorship, 2. Paying equal attention to established source markets and newly emerging ones in order to achieve a balanced set of markets. Such an approach is well-illustrated by the five-tier ranking of tourist markets operated by Tourism Australia, 3. Seeking a market: product “matching” approach that provides high quality experiences in line with the needs and expectations of different market segments based on detailed research and analysis of such markets and segments. Australia is at the forefront of tailoring its marketing strategy on the basis of detailed understanding of the requirements and preferences of consumers in its target markets through the Consumer Demand Research project. The United States outbound market is a priority market for all destinations studied. Each of the four competitor destinations has tourist offices in the United States, with Brazil having three such operations and China two, Five destinations are shortlisted as significant competing destinations to Europe in the United States outbound market: Australia, Brazil, China, South Africa and United States large cities 4. Focussing on providing a diverse and broad set of experiences designed to appeal to a wide cross-section of the United States travel market through the presentation and communication of the various elements of the destination’s tourism product offer. This is done in ways that resonate with the values and requirements of the different segments e.g. Los Angeles targets both the funseekers through its “endless entertainment” positioning and the culinary enthusiasts via its participation in the 14-day dineLA Restaurant Week, 5. Showing a significant and continuing switch away from traditional advertising and promotional methods to electronic digital marketing systems and activities. This is a particularly important strategy for destinations located at distance from the United States and for which knowledge about their attractions among the United States travelling public is relatively undeveloped. COMPETING DESTINATION ORGANISATIONS Australia, Brazil, China, and South Africa are each seeking to develop the United States traveller market. Their approach is to build upon the resources and attractions for which they are renowned, and increasingly broaden prospective travellers’ awareness and knowledge of the features over and above the iconic and well established. This is particularly the case of Australia, Brazil and South Africa, Focussing strongly on digital marketing and travel trade support activities, Tourism Australia is building its reputation as a leading destination on all factors that United States citizens consider when choosing a destination. The reach and impact of the six Oprah Winfrey programmes filmed in Australia has been a major success in achieving these goals, South Africa Tourism works closely with the United States travel trade and has boosted United States consumers’ awareness of the range of both natural and cultural resources it has through partnerships with the United States television programmes The Batchelor and Jeopardy!, South Africa has successfully built on the increased awareness of the destination generated by the 2010 soccer World Cup, and Brazil is planning to do likewise in respect of the 2014 soccer World Cup and the forthcoming 2016 Summer Olympics. 12 South Africa has successfully built on the increased awareness of the destination generated by the 2010 soccer World Cup, and Brazil is planning to do likewise Marketing Strategies for Tourism Destinations. Target market: USA COMPARATIVE ASSESSMENT: EUROPE, AUSTRALIA, SOUTH AFRICA The image of Europe in the United States is resilient, renowned and admired for its heritage, friendly people and cultural diversity. Even amongst the younger generation of European ancestry, whose affinity with Europe is much looser than their parents’ generation and who could have been expected to be less interested in Europe – Europe is widely seen as an aspirational destination, While older generations continue to make repeat visits, for many younger United States citizens (e.g. “Generation Y” / “Echo Boomers” – aged 18-30) Europe offers a primarily cultural and unique experience that meets their holiday requirements, either on a one-off basis (i.e. as a “must- see” destination) or from time to time (as somewhere worth re-visiting, probably to different countries each trip), It is clear that all destinations are seeking to broaden their appeal to the United States traveller, focussing both on their cultural heritage and natural environment, and stressing their modernity as well as their history and traditions. By challenging traditional perceptions, broadening people’s understanding of the destination, and stimulating interest in it, marketing can both provide a more extensive menu of travel opportunities to those who have been to the country before. It can also generate demand from those who were not spurred into action from their previously-held opinions and attitudes towards the destination. All destinations have campaigns to broaden United States citizens’ perceptions combining the traditional and contemporary, thereby attracting a wider number of market segments seeking different sets of experiences, The prime opportunities in the United States outbound travel market in the coming decade will be through distinctive and distinct tourism offerings. The key factor in the United States market will be the compilation of easy-to-put-together and personalised itineraries that enable the tourists to gain privileged insights and immerse themselves culturally in the destination thereby gaining self-fulfilment. The need for direct engagement with the features and activities in the destination is important for United States travellers whether on trips focussed on cultural heritage or natural environment, The number of destinations offering such a range of tourism experiences with extensive cultural diversity is growing. For example, Central and South American countries are actively targeting the United States market focussing on their exoticism. Europe maintains a competitive advantage, however, with greater cultural diversity in a small geographic area, better connections and less border formalities, The opportunities for Europe to remain as a preferred destination for the United States outbound tourist are based both on the established visitor patterns and newer forms that incorporate more countries within Europe and feature different things to see and do. 13 It is clear that all destinations are seeking to broaden their appeal to the United States traveller, focussing both on their cultural heritage and natural environment, and stressing their modernity as well as their history and traditions Marketing Strategies for Tourism Destinations. Target market: USA 14 Marketing Strategies for Tourism Destinations. Target market: USA The United States Outbound Travel Market 1 1.1 A Recovering Market United States outbound travel rose by 1.4% in 2013 to a level of 62 million trips, with over half being made across the borders to Canada to the north and Mexico to the south. Overseas trips taken by United States residents by air (i.e. excluding land crossings to Canada and Mexico) totalled 29 million in 2013, a rise of 1.8% over 20124. The pattern of growth has been mixed over the past decade with the levels of 2007 (i.e. 64 million total trips with 31 million of these to overseas destinations) still standing as the record5. Over half of outbound trips from USA are cross border The average annual growth for the past decade (2004 – 2013) has been virtually zero for all trips and less than 1% for overseas trips by air. Overseas trips fell in each successive year from 2008 – 2011, in response to the economic and financial crisis, before recording growth of 5% in 2012 and 2% in 2013. Figures for the first two months of 2014 indicate that the recovery is continuing with a rise of 8% in all outbound trips and nearly 5% in overseas air trips by United States residents6. The United States was the world leader until 2012. Average annual growth for the past decade has been virtually zero Figure 8: United States Citizen Travel to International Regions, 2013 Destination Region US Citizen Air Trips (mn) % market share % change 2013/2012 Europe 11.4 18.5 1.5 Caribbean 6.5 10.6 1.7 Asia 4.3 7.0 6.3 South America 1.7 2.8 1.9 Central America 2.5 4.1 4.2 Oceania 0.6 0.9 4.5 Middle East 1.6 2.6 5.3 Africa 0.4 0.6 (3.5) Total overseas by air 29.0 47.1 1.8 Mexico – all modes 20.5 33.4 1.2 Source: US Citizen Travel to International Regions, Office of Travel and Tourism Industries (OTTI), International Trade Administration (ITA), US Department of Commerce 4 US Citizen Travel to International Regions, 2013. http://travel.trade.gov/view/m2013-O-001/index.html 5 2012 United States Resident Travel Abroad. National Travel and Tourism Office NTTI), ITA, US Department of Commerce 6 US Citizen Travel to International Regions, 2014. http://travel.trade.gov/view/m2014-O-001/index.html 15 Marketing Strategies for Tourism Destinations. Target market: USA Data Collection Methodologies The United States authorities publish two series of data for overseas trips: 1. Air trips direct from United States port to destination region port, 2. Trips involving a visit of one or more night. For destinations without extensive direct flights, the overnight trips figures can be higher than the direct flight data series; while for regions with a good supply of direct flights (e.g. Europe), the overnight stay visits may be lower than the air trips data, as these may include travellers transiting through Europe to their ultimate destination. Outbound travel spending has risen by around a quarter in the past decade United States travellers spending on international travel (excluding international transport) is estimated by the UNWTO at US$104.7 billion (EUR78.8 billion) in 2013, a rise of 4.3% over 20127. Outbound travel spending has risen by around a quarter in the past decade, but by only half that rate when allowances are made for inflation and the decline of the US dollar. Per capita expenditure outside the United States on all overnight trips to overseas destinations was S3,018 (EUR2,320) in 2012, while for leisure and VFR trips the level was slightly lower at US$2,634 (EUR2,026)8. USA citizens are the second highest spenders on international travel United States citizens are the second highest spenders on international travel, ranked in 2nd place by the UNWTO, behind only China, which took over as leading nation in tourism expenditure from the United States in 20129. Over half of United States citizens’ outbound travel is to the neighbouring countries of Canada and Mexico. In 2012, the 20 million United States travellers’ spending in Mexico totalled US$10.6 billion (EUR8.1 billion) while 12 million in Canada spent US$7.6 billion (EUR5.8 billion)10. Next after Mexico and Canada in 2012 come (in order) the United Kingdom, Dominican Republic, France, Italy, Germany, Jamaica, China and Spain, each of which recorded in excess of 1 million United States citizens’ trips. The average length of stay for all overseas destinations is 18.3, while the median duration is 10 nights. 7 Values refer to expenditure measured in local currencies, current prices. UNWTO World Tourism Barometer, Volume 12, Statistical Annex, August 2014. 8 Profile of US Resident Travelers Visiting Overseas Destinations: 2012 Outbound. NTTI, ITA, US Department of Commerce 9 UNWTO World Tourism Barometer, Volume 12, August 2014 10 United States Travel and Tourism Exports, Imports and the Balance of trade: 2012. OTTI, ITA, US Department of Commerce http://travel.trade.gov/outreachpages/ download_data_table/2012_International_Visitor_Spending.pdf 16 Marketing Strategies for Tourism Destinations. Target market: USA Figure 9: Top 10 Outbound Destinations Visited by United States Residents by Air in 2013 1. Mexico 3. United Kingdom 5. Italy 7. Germany 9. China 6.2 mn (air arrivals only) 2.6 mn 1.8 mn 1.7 mn 1.1 mn 2. Canada 4. France 5. Jamaica 8. Dominican Rep. 10. Bahamas 2.9 mn 2.0 mn 1.8mn 1.6mn (NB total arrivals all means of transport 20.9 mn) (air arrivals only) (NB total arrivals all means of transport 12.0 mn) (note actual figure 1,799,000) (note actual figure 1,799,000) 1.1mn Source: All destinations except Dominican Republic and the Bahamas: 2013 United States Resident Travel Abroad. US Department of Commerce, International Trade Administration, Industry & Analysis, National Travel and Tourism Office. http://travel.trade.gov/outreachpages/download_data_table/2013_US_Travel_Abroad.pdf Dominican Republic: Central Bank of the Dominican Republic. http://www.bancentral.gov.do:8080/ english/statistics.asp?a=Tourism_Sector Bahamas: Bahamas Ministry of Tourism Department of Research and Statistics. http://www.tourismtoday.com/home/statistics/stop-overs/ In the period since 2003, the notable changes in the composition and profile of the leading destinations for United States citizens have been11: • • • • • strong growth to areas with relatively low 2003 base volumes e.g. the Middle East up two-and-a-half-times, Africa almost double, a number of countries, characterised by one or a combination of expanding economies (for business travel), strong VFR links, and a vacation product preferred by United States citizens, have recorded a more than twofold rise in trips between 2003 and 2012 i.e. India, China, the Philippines, Dominican Republic, steady growth in line with, or slightly above, the overall average to Mexico, other winter sun destinations (apart from the Dominican Republic), Central America and many European destinations, a weak performance for Europe as a whole with the sharpest falls being recorded in the United Kingdom and the Netherlands, but above average growth in Greece, Austria, Spain and Ireland, a sharp decline in trips to Canada (down 16% over the period), Brazil, Japan and the Oceania region. 11 2012 United States Resident Travel Abroad. NTTI, ITA, US Department of Commerce 17 Europe has recorded a weak performance since 2003 Marketing Strategies for Tourism Destinations. Target market: USA Figure 10: Outbound United States Residents Tourism Growth Trends, 2003 2012 -1% +26% Caribbean South America Central America +90% +154% +38% -38% Europe Africa +1% Middle East Asia +25% Oceania Source: 2012 US Resident Travel Abroad (one or more nights). US Department of Commerce, Industry and Analysis, National Travel and Tourism Office. December 2013 The USA travel market is recovering from the economic crisis The United States travel market is recovering from the recent economic and financial crisis. International travel incidence rates have been rising by three percentage points to 76% over the past three years. United States citizens are cautiously optimistic about future international prospects, with the market outlook at its highest level since 200812. Further signs of recovery are reductions in the proportions of United States citizens citing barriers to travel. While costs remain the main concern, the number of travellers mentioning this has fallen from 47% in 2012 to 42% in 2013. Safety concerns remain the 2nd most likely factor to limit international travel. The weakness of the economy was raised by 25% in 2013, down from 31%; and the number of travellers saying “nothing could prevent international travel” rose to 12% in 2013 from 9% a year earlier13. USA international travel is forecast to grow at an annual rate of 4.5% to 2019 United States international travel (based on aggregate arrivals) is forecast to grow at the average annual rate of 4.5% between 2014 and 2019, with long haul (i.e. everywhere outside North America) expanding at the faster rate of almost 6%, serving to increase long haul’s share by three percentage points to 66%14. 1.2 United States Tourism to Europe Europe’s share of USA overseas air trips has declined by six percentage points between 2003 and 2013 United States citizens’ air trips to Europe (measured as non-stop from United States port to European port) totalled 11.4 million in 2013, a 1.5% rise over 2012. Between 2007 and 2013, the level has declined by 14% from 13.3 million. In consequence, Europe’s share of all United States overseas air trips has declined six percentage points from 45% in 2003 to 39% in 2013. 12 Global Tourism Watch: 2013 US Summary Report. http://en-corporate.canada. travel/sites/default/files/pdf/Research/Market-knowledge/Market-profile/US/gtw_ summary_report_us_2013.pdf 13Ibid 14 European Tourism in 2014: Trends and Prospects (Q1 2014). Tourism Economics. May 2014. ETC 18 Marketing Strategies for Tourism Destinations. Target market: USA This trend is confirmed in the levels of visitation involving a stay of at least one night in Europe15. In 2013 United States citizens made 10 million such trips to Europe, over two million less than in the record year of 2007 when 12.3 million overnight trips were recorded. The 2007 level had risen slowly from 2004 after a strong growth of 13% in that year over 2003. Europe’s market share of overseas one night plus trips fell from 42% in 2003 to under 36% in 2013. Despite this reduction in share, Europe still accounts for over one-in-every-three overseas trips made by United States travellers. Excluding international air transport, United States travellers spent US$24.3 billion (EUR18.7 billion) on their European trips in 2012. Including passenger fare payments brings the total to US$38.7 billion (EUR18.7 billion), up 7% on the level in 201116. The ETC Dashboard data show total United States arrivals in all European countries in 2013 of 22.2 million in 2013, a rise of 4.3% over 2012. The Dashboard data relate to aggregated arrivals so are higher reflecting the fact that more than one country is visited per trip (1.5 countries on average, according to OTTI regional profiles17). Both data series show a big jump in 2004, low growth between 2004 and 2007, followed by two years of decline in the wake of the global economic and financial crisis, and a gradual recovery over the past three years. Data Collection Methodologies There is, however, a significant variance between United States departures to Europe and United States arrivals in European countries for 2012 and 2013. While data series developed on such different bases (i.e. air departures compared with arrivals based on different methods such as at border, accommodation registrations etc.) will show some variance, other factors are likely to be: • • • • the definition of which countries are included in Europe, the fact that the OTTI data do not include charter flights and are based on a self-selection survey, destination statistics include all visits of a duration of more than one day but less than one year, for all purposes, including for instance students and United States citizens resident in Europe on business, who may not be fully reflected in the OTTI’s results, different data collection methods across destinations. The ETC Dashboard information is based on UNWTO Factbook data made up of arrivals on the best available definition which can be a mix of arrivals at borders, arrivals at accommodation establishments or arrivals at hotels. It then standardises and scales all arrivals to the same definition for consistency and to allow easier comparison across countries. 15Ibid 16 2012 United States Travel and Tourism Exports, Imports and the Balance of trade: 2012. OTTI, ITA, US Department of Commerce 17 OTTI Regional Profiles http://travel.trade.gov/outreachpages/outbound.general_ information.outbound_overview.html) 19 Europe still accounts for one in three overseas trips made by US travellers Marketing Strategies for Tourism Destinations. Target market: USA Figure 11: United States Arrivals in Europe, 2003 to 2012 Year Arrivals (million) % change on previous year 2003 15.9 (6.5) 2004 19.2 20.7 2005 19.7 2.6 2006 21.4 8.5 2007 21.5 0.6 2008 19.8 (8.1) 2009 18.9 (4.5) 2010 19.4 2.6 2011 20.8 7.6 2012 21.3 2.2 2013 22.2 4.3 Source: ETC Dashboard The USA is the leading nonEuropean source of visitors to Europe The UK is the leading European destination for US residents The United States is the leading non-European source of visitors to Europe generating three times the number of the next largest market, China. The leading European destinations for United States’ residents are, in order by volume of trips, the United Kingdom, accounting for a quarter of all trips from the United States to Europe, followed by France, Italy, Germany and Spain. Individual European destinations have experienced differing patterns of United States trips, both within the decade and between each other. There are three broad groups: • • • those that fared well in the period between 2003 and 2007 but have suffered declines since i.e. France, Italy, Germany, Ireland, Greece, those that have achieved growth throughout the period i.e. Spain, Austria, those that have suffered a decline throughout the decade i.e. the United Kingdom, Netherlands, Switzerland. Figure 12: United States Residents’ Trips to Europe by Leading Country European Country 2012 Visits of One or More Nights (‘000) % change 2003 -2012 % change 2007-2012 United Kingdom 2,537 (22.0) (18.8) France 2,024 7.4 (8.7) Italy 1,938 18.3 (18.3) Germany 1.710 11.0 (11.7) Spain 1,140 22.7 4.3 Ireland 684 21.7 (8.7) Netherlands 656 (21.1) (30.0) Switzerland 570 (6.7) (13.1) Austria 456 24.3 12.3 Greece 399 36.2 (29.0) 10,204 (1.1) (17.1) Total Europe Notes: 1. multiple country visits included. 2. Figures in parentheses () indicate a fall over the period Source: 2012 United States Resident Travel Abroad. NTTI, ITA, US Department of Commerce 20 Marketing Strategies for Tourism Destinations. Target market: USA Within Europe, Western Europe receives the largest number of United States tourists, with arrivals of over 8.7 million in 2013, followed by Southern and Northern Europe with 5.9 million and 5.2 million United States tourist arrivals respectively. Central/Eastern Europe has the smallest share of the United States market, with 2.9 million United States tourist arrivals in 201318. The leading country recipients of United States overnight tourists’ spending in 2012 were19: • • • • the United Kingdom US$9.7 billion (EUR7.5 billion), representing a quarter of total United States resident expenditure in Europe, Germany US$6.5 billion (EUR5 billion), France US$4.5 billion (EUR3.5 billion), Italy US$3.9 billion (EUR3 billion). Western Europe receives the largest number of US tourists The leading four countries account for almost two thirds of US travellers’ spending in Europe Together the leading four countries accounted for almost two thirds of total United States travellers’ spending in Europe. United States residents’ trips to Europe are forecast to grow at an average annual rate of over 4.7% over the next five years. At the same time total United States long haul overnight trips are likely to grow at close to 6% a year, resulting in a further loss of 1.5 percentage points in Europe’s share of the United States long haul market, to just over 42% in 201820. US trips to Europe are forecast to grow at an annual rate of 4.7% over the next five years 1.3 Characteristics of the United States Traveller Population: 316.1 million population (2013 estimate)21. The population of the United States is expected to continue to grow due to the high migration rates and the birth rate to death rate ratios. By 2030, the population will reach 358 million under the middle scenario, an average annual rate of growth since 2013 of between 0.7 and 0.8%22. The natural increase to net international migration ratio of in excess of 2:1 currently will change to close to 1:1 by 2030. 18 European Tourism Portfolio Analysis: Market Share and Origin Market Growth. Tourism Economics. April 2014. ETC. 19 2012 United States Travel and Tourism Exports, Imports and the Balance of trade: 2012. OTTI, ITA, US Department of Commerce http://travel.trade.gov/ outreachpages/download_data_table/2012_International_Visitor_Spending.pdf 20 European Tourism in 2014: Trends and Prospects (Q1 2014). Tourism Economics. May 2014. ETC 21 USA Quick Facts from the US Census Bureau http://quickfacts.census.gov/qfd/ states/00000.html 22 2012 National Population Projections. US Census Bureau. http://www.census.gov/ population/projections/data/national/2012/summarytables.html 21 The population of the USA is expected to continue to grow due to high migration and birth rates Marketing Strategies for Tourism Destinations. Target market: USA Figure 13: Demographic and Economic Facts Population 316.3 mn Gross domestic product 2013 us $16,800 trillion (EUR12,400 trillion) GDP per capita current prices us $53,101 (EUR39,330) GDP per capita International dollars us $53,101 (EUR39,330) Unemployment rate 7.4% and falling Inflation 1.5% and likely to rise slowly from 2015 onwards The top origin regions/states from which United States residents travelled to overseas destinations were23: • • • • • US citizens travel abroad predominantly in months of June to August Middle Atlantic States (New York, New Jersey and Pennsylvania): 26% share of all United States regions: no increase over 2011, South Atlantic States (Florida, Georgia, Virginia, Washington, D.C., Maryland and North Carolina): 18% share, but down 18%, Pacific States (California): 15% share, up 22% over 2011, East North Central (Illinois, Ohio, Michigan and Wisconsin): 10%, up 42%, West South Central States (Texas): 10 % share, up 35%. United States citizens travel abroad predominantly in the northern hemisphere summer months of June, July and August with a second peak in December. The favoured time to visit Europe is between May and September, while the lowest volumes of US-to-Europe travel are in November, January and February24. United States residents travel by air to their long haul destinations (i.e. outside North America). Trips by United States citizens to Canada and Mexico are a mixture of short cross-border travel using land transportation, and longer trips normally by air. Land crossings outnumber air trips in both the cases of Canada and Mexico by two-and-a-half to three times. Over three quarters of US outbound trips are for leisure Over three-quarters of all overnight outbound trips undertaken by United States residents are for leisure/pleasure (47%) or VFR purposes (29%) with about 15% being business and convention etc. trips, and 5% educational purposes. Europe accounts for 36% of all overseas trips in 2012, 35% of leisure and VFR trips and 43% of business and convention etc. trips. 23 U.S. Travel to International Destinations Increased Three Percent in 2012. http://travel.trade.gov/outreachpages/download_data_table/2012_Outbound_ Analysis.pdf 24 US Outbound Travel by World Regions http://travel.trade.gov/research/monthly/ departures/ 22 Marketing Strategies for Tourism Destinations. Target market: USA The key sources of travel information and options consulted by United States citizens for all overseas trips in 2012 were: airline (50%), online travel agency (31%), travel agency office (20%) and personal recommendations (19%), with all four sources slightly more important when considering leisure trips25. The survey conducted for the ETC-UNWTO study on the United States Outbound Travel Market to Europe found that most important was friends and relatives recommendation (35%), followed by must-see world renowned destination (24%), information on the Internet (14%), travel agency recommendation (10%) and ‘appealing advertising’ (8%)26. This suggests that United States travellers determine the destination before seeking out the travel arrangements. Airlines and online travel agencies are the key sources of travel information Air trips are mainly booked directly with the airline (36%), through an internet booking service (28%) or via a travel agency office (22%)27. Distribution in the United States travel market is driven by four major channels. This includes two online channels: • • supplier-direct websites, online travel agencies (OTAs), and two offline channels: • • central reservation/walk-in, travel agencies/travel management companies (TMCs). There has been a continued shift in distribution from offline to online channels as travellers switch booking options, but the transition has slowed down in recent years as suppliers have concentrated on maximising direct bookings. Roughly half of United States travellers travel independently, preferring a customised itinerary compared to a packaged trip. 21% took a partially or fully guided trip, 16% went on a cruise and a further 14% went to an all-inclusive resort28. Prepaid packages account for 12% of United States residents’ overnight trips overseas, though 52% pre-booked lodging29. The average travel party size for United States citizens on overseas overnight trips is 1.5 persons for all purposes, 1.6 for leisure/VFR trips, and 1.2 for business/convention trips30. 59% of United States leisure travellers to overseas destinations travel alone, 26% with a spouse or partner, 15% with family/relatives and 5% with friends. 25Ibid 26 ETC-UNWTO United States Outbound Travel Market to Europe 27 Profile of US Resident Travelers Visiting Overseas Destinations: 2012 Outbound. NTTI, ITS, US Department of Commerce 28 Global Tourism Watch: 2013 US Summary Report. http://en-corporate.canada. travel/sites/default/files/pdf/Research/Market-knowledge/Market-profile/US/gtw_ summary_report_us_2013.pdf 29 Profile of US Resident Travelers Visiting Overseas Destinations: 2012 Outbound. NTTI, ITS, US Department of Commerce 30Ibid 23 There has been a continued shift from offline to online booking channels Roughly half of US travellers travel independently Marketing Strategies for Tourism Destinations. Target market: USA There is growing interest in unique/ local experiences and summer activities Nature, culture, unique / local experiences, and urban activities remain the top vacation interests of United States travellers. The Global Tourism Watch 2013 results show there is growing interest in unique / local experiences, aboriginal attractions, and summer activities31. These are broad interests and activities that many long haul destinations can meet. The principal segments based on people’s attitudes and values by life stage are identified in the ETC-UNWTO study of the United States outbound travel market32: • • • • • The great majority of US travellers undertake sightseeing and engage in shopping Baby Boomers (Young Boomers (45-54), Older Boomers (55-65)) comprise approximately 38% of all United States online leisure travellers33. They are older, richer, fitter, more confident, and more experienced than their predecessors. These include traditional older travellers (i.e. wealthier, retired), and the more adventurous “middle youth” travellers who do not see themselves as elderly and are most commonly found in professional, managerial or self-employed positions, Generation X (31-44) comprise approximately 30% of all United States online leisure travellers. Averse to conventionality, with low boredom thresholds having grown up with the 24 hour media, they nonetheless reject all things conventional. They are creative, and open to learning. They are attracted to destinations with sustainable practices and that offer the opportunity to discover new destinations, cultures and experiences, The “Creative Class” (the Bobos – Bourgeois Bohemians) straddles both the Baby Boomers and Generation X segments. Their interest is deeper than just the experience. They engage in active participation and experiential activities that are intriguing, fulfilling, and personally enriching, meeting both their sense of status and self-improvement, Echo Boomers (18-30) comprise approximately 22% of all United States online leisure travellers34. They live in the digital realm, trusting their peers’ advice over most forms of advertising. They are potentially the most lucrative but demanding future travellers. The extent to which they will opt for independent - versus packaged - travel will be a challenge for the United States outbound travel industry, Seniors (66+) comprise 10% of all United States online leisure travellers35 but represent a strong segment for mature destinations with which they have the strongest affinity, because of ancestral links, which are weakening with each successive generation. The great majority of United States travellers, irrespective of purpose of trip, undertake sightseeing and engage in shopping36. Just under a half of leisure and VFR travellers visit small towns and/or the country side, but the incidence is much less for business travellers. Leisure and VFR travellers are also much more likely than business/convention travellers to go to historical, cultural heritage or national park locations, take guided tours, engage in water sports or go to nightclubs, casinos or theme parks. 31 Global Tourism Watch: 2013 US Summary Report. http://en-corporate.canada. travel/sites/default/files/pdf/Research/Market-knowledge/Market-profile/US/gtw_ summary_report_us_2013.pdf 32 ETC-UNWTO United States Outbound Travel Market to Europe 33 Travel Trends 2011 - Prospering in 2011. Presentation at USTOA, December 2010. Henry Harteveldt, Forrester Research 34Ibid 35Ibid 36 Profile of US Resident Travelers Visiting Overseas Destinations: 2012 Outbound. NTTI, ITA, US Department of Commerce 24 Marketing Strategies for Tourism Destinations. Target market: USA Two-fifths, across the board in respect of purpose of visit, like to experience fine dining. Figure 14: Leading Activities of United States Travellers Visiting Overseas Destinations, 2012 (% Engaging in the Activity) Leisure/recreational activities All United States Travellers Leisure & VFR Travellers Business & Convention etc Travellers Sightseeing 78 81 67 Shopping 76 78 67 Small Town/Countryside 43 46 28 Experience Fine Dining 41 42 44 Historical Locations 40 42 29 Guided Tours 35 37 19 Art Galleries/Museums 33 35 26 Cultural/Ethnic Heritage Sites 31 33 23 National Parks/Monuments 28 30 19 Nightclub/Dancing 26 27 18 Water Sports 18 21 7 Concert/Play/Musical 14 15 10 Amusement/Theme Parks 10 11 6 Casino/Gamble 9 10 5 Camping/Hiking 8 8 4 Source: Profile of US Resident Travelers Visiting Overseas Destinations: 2012 Outbound. NTTI, ITA, US Department of Commerce 1.4 Drivers of Growth The United States has a far lower level of overseas travel per capita than neighbouring Canada. The incidence of outbound travel is particularly undeveloped away from the major metropolitan areas and among the black population i.e. 13% of the population but only 9% of United States overseas travellers. The key to growth comes from three factors: the underlying economic factors and consumer confidence arising from these; the impact of digital technology and social media; and consumers’ perception of the destination and the extent to which they have it high on their list of places to visit. The USA has a far lower level of overseas travel than neighbouring Canada The steady recovery of the United States economy since the downturn of 2008/9 has begun to restore consumer confidence, as witnessed by the lessening of perceived barriers to overseas travel as reported in section 1.1.4. The recovery is likely to continue in a similar manner with rises in GDP of 2.8% and 3% anticipated in 2014 and 2015 respectively after the 1.9% growth in 201337. Traveller confidence will continue to rise and, with it, overseas travel, as anticipated in the United States outbound forecasts outlined in section 1.1. The steady recovery of the US economy has begun to restore confidence 37 World Economic Outlook Update. January 2014. IMF. https://www.imf.org/external/ pubs/ft/weo/2014/update/01/ 25 Marketing Strategies for Tourism Destinations. Target market: USA US citizens’ use of the Internet and mobile phones is amongst the highest in the world Over 80% of US travellers are active on social media United States citizens’ use of the Internet and mobile phones is among the highest in the world with more than one mobile phone per head of population – 328 million phones in April 201438 – and a penetration of 81% in internet usage – 254 million users39. Over 80% of United States travellers are active on social media. Facebook is the most popular social networking site, with over three-quarters of United States travellers reporting use in the past 3 months, followed by YouTube (48%) and Twitter (26%)40. With the great majority of United States travellers opting for tailormade itineraries, information to enable the necessary planning is typically sought online directly with suppliers like airlines or through OTAs. On-line searches are more for planning purposes than determining destination choice It appears that the online searches and consultations with travel agencies – whether online or through personal consultation - are more for planning purposes than for determining the destination choice which is predominantly influenced by the traveller’s perceptions (built up from personal experience and recommendations of friends/relatives) and how highly rated the destination is for a visit. United States travellers evaluate destinations according to how well they can meet their needs for: • • • • • • authentic experiences in new destinations (75%), rest and relaxation (68%), desire to spend time with/reconnecting with loved ones (48%), personal enrichment e.g. voluntourism, cultural experience, learning, etc. (43%), discovering new experiences in previously visited destinations (24%), adventure (24%)41. The most important determining factors in choosing a vacation are, in order42: 1. 2. 3. 4. 5. US travellers invest effort in seeking out the right destination The right destination, Value for money paid, Once-in-a-lifetime experiences, The activities available, Price. United States travellers, therefore, invest a good deal of time and effort in seeking out the right destination. That destination may be one they have already visited if they find a new set of opportunities or experiences there; or it may be a new destination that has created, through its marketing and social media feedback from previous visitors, a desire among the market to visit it. 38 Wireless Quick Facts. CTIA. http://www.ctia.org/your-wireless-life/how-wirelessworks/wireless-quick-facts 39 List of countries by number of internet users. http://en.wikipedia.org/wiki/List_of_ countries_by_number_of_Internet_users 40 Global Tourism Watch: 2013 US Summary Report. http://en-corporate.canada. travel/sites/default/files/pdf/Research/Market-knowledge/Market-profile/US/gtw_ summary_report_us_2013.pdf 41 Top Trends from the Virtuoso – Luxe Report 42Ibid 26 Marketing Strategies for Tourism Destinations. Target market: USA Europe has a competitive advantage among the United States traveller through its image, which is deeply embedded in the psyche of many United States citizens, as an aspirational, sophisticated, diverse destination. It is seen as offering not only an iconic historical experience, but it also offers United States citizens the opportunity to immerse themselves in Europeans’ way of life, to visit iconic buildings and monuments of which they’ve been aware since childhood, and to discover unexpected and special experiences by virtue of their ability to communicate with Europeans, who are largely considered friendly and hospitable43. Europe has a competitive advantage through its image The types of interests and activities of United States travellers can be met by many – not necessarily - long haul destinations. Europe’s main competition is increasingly likely to come from Central and South America, as the demographic make-up of the United States changes with people with Hispanic roots increasing their share of the United States population. The product offering of the Central and South American region – its history, culture, and hospitable people – represents direct competition for Europe, its advantages being its accessibility (closer and cheaper), and general perception of greater warmth, colour, vibrancy and extroversion44. Europe’s main competition is increasingly likely to come from Central and South America 1.5 Successful Destination Strategies The United States outbound travel market will be increasingly characterised by those seeking a deeper, more authentic and self-fulfilling experience from their chosen destinations than has been the case in past decades. Success for any destination will be based on offering travellers value-for-money, interesting and diverse experiences, and unique tourism products. Any destination’s ability to attract an increasing share of the United States citizen outbound market over the coming decade will require attention to be paid to: 1. Creating and sustaining the image in the market as an “aspirational destination”, inspiring potential visitors about the calibre and range of experiences available in the destination, with a focus on how visitors can gain privileged insights and immerse themselves culturally in the destination45, 2. Creating a set of tourism products/experiences that have diversity and authenticity combining both historic and modern components, featuring big cities and smaller places, and providing cultural and natural features, with the opportunity for active participation – all geared to providing a meaningful and fulfilling trip as increasingly demanded by the United States traveller, 3. Extensive investment in, and highly effective use of, online/digital and mobile technology, online advertising and social media marketing, since this represents an efficient and effective way of reaching the United States consumer in all market segments, with a dual focus: image building, and detailed information for trip planning. It will be vital for destination marketing agencies to bring the destination to life and to enable the potential visitor to interrogate the website interactively, as they have come to expect from current leading technology applications in their daily lives46, 43 44 45 46 ETC-UNWTO United States Outbound Travel Market to Europe Ibid Ibid Ibid 27 US outbound travel will be increasingly characterised by demand for authentic and self-fulfilling experiences Marketing Strategies for Tourism Destinations. Target market: USA 4. Making it easy to obtain information on the destination, and for that information to be personally relevant to each potential visitor; and making it easy to book – e.g. through digital linkages47, 5. Addressing concerns (particularly among the older generations, and the inexperienced United States traveller – each year one-in-fourteen is a first time overseas traveller48) about prices, safety and ease of travel – all of which can be addressed through digital technology, 6. Facilitating the ready availability of different components of the destination so that: combined business and leisure trips can be created and undertaken; and the increase in multi-generational travel (i.e. two or three generations travelling together) can be further stimulated – again, predominantly, through online means. 47Ibid 48 Profile of US Resident Travelers Visiting Overseas Destinations: 2012 Outbound. NTTI, ITA, US Department of Commerce 28 Marketing Strategies for Tourism Destinations. Target market: USA Travel Destinations in the United States Outbound Market Based on the investigations and research conducted into recent trends in United States outbound travel flows and the comparative assessment that introduces this report, a short list of five destinations was selected for further examination in respect of the United States market. The five – in alphabetical order – are: 1. 2. 3. 4. 5. Australia, Brazil, China, South Africa, United States Large Cities. The remainder of this chapter illustrates the positioning of these destinations in the United States outbound market as compared to Europe. The positioning is assessed on factors that facilitate tourism flows, such as visa regimes, transport routes, and the political, socio-economic and cultural links between the United States and the four foreign country destinations. This section is enriched by an analysis of TripAdvisor ratings on accommodation, attractions and eateries, presented in Appendix 3. While not representative of United States travellers, TripAdvisor ratings are used as a proxy for consumers’ appreciation of key aspects of a holiday experience across competing destinations. 2.1 Visa Regimes The detailed comparison of visitor entry requirements for the selected 13 destinations competing with Europe considered three elements: 1. Whether the destination imposes a visa requirement for entry to the country, 2. The documentation and other details demanded for issuance of a visa, 3. A qualitative assessment of the “hassle” factor involved in obtaining the visa. Among the four countries selected as prime competitors to Europe in the United States outbound travel market, United States travellers require visa for entry to Australia, Brazil and China whereas there is no such requirement for travel to South Africa or Europe (i.e. both ETC and non-ETC member countries). 29 2 Marketing Strategies for Tourism Destinations. Target market: USA The Chinese visa process makes travel more complicated compared to competitor destinations. Though there are exceptions for transit passengers and visa on arrival in certain instances, most United States citizens, whatever their purpose of visit, require to obtain a visa in advance, typically taking four days processing, though an emergency application can be made at higher charge. The Electronic Travel Authority introduced for United States travelers to Australia significantly reduces the complication for United States citizens visiting that country. The visa regime in place for United States travellers to Brazil represents an obstacle, both in terms of processing time and cost. Figure15: Visa Requirements of United States Travellers in Key Destinations Destination Yes/No Requirements/Process Australia Y United States citizens qualify for Electronic Travel Authority obtained through travel agent or airline participating in the scheme and verified by the airline prior to boarding and immigration officials on arrival. Max stay 90 days. AUD20 (EUR14) for online applications. Brazil Y China Y South Africa N ETC Members N Tourist visa application, visitor visa sub-class 600. Prior to travel, application to Australian authorities in the USA. Travel documentation required. Processing time 4 to 6 weeks. From AUD130 (EUR90). Prior to travel, application to Brazilian authorities in the United States. Round ticket and evidence of sufficient funds required. Max stay 90 days. Processing time up to 15 days. US$180 (EUR133). Tourist visa L: prearranged. Requirements: documents showing the itinerary including air ticket booking record (round trip) and proof of a hotel reservation, etc. or an invitation letter issued by a relevant entity or individual in China, containing information on: the applicant (full name, gender, date of birth, etc.), the planned visit (arrival and departure dates, place(s) to be visited, etc.), the inviting entity or individual (name, contact telephone number, address, official stamp, signature of the legal representative or the inviting individual). Single entry, 90 days visa US$140 -160 (EUR104 – 118). No visa required for stays of up to 90 days. Passports must be machine readable. Onward travel documentation required. No visa required for stays of up to 3 months in Schengen member countries. No visa required for visits to non-Schengen ETC members (Bulgaria, Croatia, Ireland, Romania, Serbia) nor to non-Schengen, non-ETC members e.g. the United Kingdom. 30 Marketing Strategies for Tourism Destinations. Target market: USA 2.2 Air Connections The scheduled air capacity from the airports of the United States’ main metropolitan centres of Los Angeles, Miami and New York to the shortlisted destinations competing with Europe was monitored on ETC’s behalf by Amadeus. Two points in the year were examined – week 24 in 2013 (broadly corresponding to high season) and week 6 in 2014 (low season), though this can only be taken as an approximate measure given the difference in northern and southern hemisphere climates at the different times of the year. Data for two years were considered in order to provide an indication of the trend in capacity on the various routes i.e. June 2008/June 2013, and February 2009/February 2014. There are substantial rises in direct flight capacity recorded for the two periods under review to all the four destinations competing with Europe, particularly on routes from Los Angeles, while for Europe the picture is mixed: June 2008-June 2013 - % change in direct flight seats • • • • • • • Australia capacity up 43% on LAX-SYD route, Brazil capacity up 45%, principally on routes to Rio de Janeiro which increased share of United States-Brazil seats from 9% in June 2008 to 25% in June 2013, China routes up overall by 175%, made up of a doubling of seats to Beijing (from both Los Angeles and New York) and a more than fourfold increase in capacity to Shanghai, introduction of a direct service between New York and Johannesburg with over 2,000 weekly seats, a decline in overall capacity on United States routes to Amsterdam, London, Paris and Rome ranging from 10 to 23% over the five year period, a rise of 18% in direct seats to Madrid, routes from Los Angeles to Europe held up better with rises in capacity to Amsterdam, Madrid, Paris and Rome. February 2009-February 2014 - % change in direct flight seats • • • • • • Australia capacity up 21% on the Los Angeles – Sydney (LAX-SYD) route, similar growth in direct seats in between February 2009 and 2014, as recorded between June 2008 and 2013 i.e. 45%, though principally in this period on Sao Paulo routes. Sao Paulo accounted for 78% of seats in February 2014, a two-and-a-half-fold rise in combined capacity on routes from Los Angeles and New York to Beijing and Shanghai, introduction of a direct service between New York and Johannesburg with 1,700 weekly seats, a fall in weekly capacity on all routes to European centres except Madrid which achieved a 7% rise i.e. down by over 20% to Amsterdam, 5% to London, 10% to Paris and by almost a half to Rome, as in the June 2008-June 2013 period, seats available on direct flights to Europe from Los Angeles (i.e. to Amsterdam, London and Paris) held up better than from New York (except to Madrid where a 10% rise was recorded). 31 There are substantial rises in direct flight capacity Marketing Strategies for Tourism Destinations. Target market: USA The weekly capacity of direct flights from the three main United States cities to the two principal Brazilian airports ranged between 30 and 35,000 (with the higher volume in February, the month of Carnival in Rio de Janeiro) Capacity on flights to the two main Chinese centres amounted to just over 24,000 in the most recent periods, with little difference between June and February. Capacity to Australia (solely on the Los Angeles – Sydney route) is a consistent 12,000 across the year. The recently introduced New York to Johannesburg route gives South Africa its first direct connection with the United States providing between 1,700 and 2,200 seats according to time of the year. European routes still dominate in terms of capacity from the US European routes still dominate in terms of capacity from the US, despite the recent declines. United States seats from Los Angeles, Miami and New York to London is between 77 and 85,000 on between 280 and 310 flights, depending on time of year. Paris is served by between 25 and 37,000 seats, Rome by between 14 and 21 thousand, Amsterdam by between 13 and 15,000 and Madrid by between 10 and 16,000 seats. In all instances, capacity is significantly higher in June than in February. There are no direct scheduled air services between any of the United States cities and Perth (Australia) or Cape Town (South Africa); while there are no direct services from Miami to Sydney, Beijing, Shanghai, or Johannesburg; and no direct flights from New York to Sydney nor from Los Angeles to Rio de Janeiro or Johannesburg. Competing destinations to Europe have a comparative advantage in growth in direct air capacity on US routes The analysis points to a comparative advantage of the competing destinations to Europe in terms of growth in direct air capacity on United States routes. Over the past five years, direct air capacity from the United States to all four destinations has expanded more significantly than to Europe. 32 Marketing Strategies for Tourism Destinations. Target market: USA Figure 16: Changes in Weekly Direct Flight Seat Capacity from the United States (Los Angeles, New York and Miami Aggregated) to Selected Destinations, June 2008-June 2013 and February 2009-February 2014 Source: TDI calculations based on data supplied by Amadeus Full details of flights, capacities and flight time for direct and connecting flights for a week in June 2008 and 2013, and a week in February 2009 and 2014 are shown in Appendix 2. NOTE: figures in front of break (/) relate to the first year in the time series i.e. June 2008, while those after the break are for the later year i.e. June 2013. 33 Source TDI calculations based on data supplied by Amadeus 34 0 5000 10000 15000 USA -‐ Brazil Feb-‐09 Feb-‐14 Jun-‐08 Los Angeles Jun-‐13 Feb-‐09 Feb-‐14 Jun-‐08 Jun-‐13 New York Miami Los Angeles – Los Angeles – Los Angeles – Los Angeles – Los Angeles – Amsterdam London Madrid Paris Rome Los Angeles-‐ Miami -‐ Rio de Miami-‐Sao New York -‐ Rio New York-‐Sao Sao Paulo Janeiro Paulo de Janeiro Paulo 0 5,000 10,000 15,000 20,000 25,000 Los Angeles -‐ Europe Figure 17: Direct Flights Capacity 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Jun-‐13 Feb-‐14 Jun-‐08 New York -‐ Johannesburg Jun-‐13 New York -‐ Johannesburg Jun-‐08 Miami– Miami – Paris Miami -‐ Madrid Rome Feb-‐14 Miami-‐ London Feb-‐09 0 5000 Feb-‐09 Miami -‐ Amsterdam Miami -‐ Europe 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Feb-‐09 8,000 6,000 4,000 2,000 0 Feb-‐14 Jun-‐13 Feb-‐14 Jun-‐08 Feb-‐14 Jun-‐08 New York-‐ Shanghai Jun-‐13 Jun-‐13 Los Angeles – Sydney Los Angeles -‐ Sydney Feb-‐09 0 20,000 Feb-‐09 Los Angeles -‐ New York-‐Beijing Shanghai Los Angeles & New York -‐ China Los Angeles-‐ Beijing Jun-‐08 New York -‐ Europe Marketing Strategies for Tourism Destinations. Target market: USA Figure 17: Direct Flights Capacity Marketing Strategies for Tourism Destinations. Target market: USA 2.3 Political, Economic and Socio-Cultural Links As the world’s leading economy the United States maintains active relations at all levels with each of the countries included in the study as main destination competitors for United States tourists to Europe. Australia has continually strengthened its relationship with the United States since 1942, relations being formalised by the ANZUS treaty and the Australia-United States Free Trade Agreement. Trade between the United States and Australia is strong, the United States being Australia’s fourth largest export market and its second largest source of imports. The United States is also the largest investor in Australia, while Australia is the fifth largest investor in the United States49. There are 100,000 United States citizens living in Australia50 , half the level Australians living in the United States51. The Crocodile Dundee series of films created considerable interest in Australia among United States citizens. The United States and Brazil have enjoyed generally close relations for 200 years. The two countries currently cooperate on trade issues, HIV/AIDS efforts, regional concerns, and the international peacekeeping operation in Haiti. Brazil is the world’s seventh largest economy and the United States’ eighth-largest merchandise trading partner. Two way trade in 2012 was a record US$76 billion (EUR58 billion). The United States had a record US$11.6 billion (EUR8.9 billion) trade surplus with Brazil in 2012 representing the sixth highest surplus market for the United States. Brazil’s main imports from the United States are machinery, chemicals, aircraft/spacecraft, and computer and electronic products52. The United States is Brazil’s second largest export market. The United States is the leading foreign investor in Brazil, with an accumulated foreign direct investment stock in 2012 of US$79 billion (EUR61 billion). Brazilian investment in the United States has grown rapidly. In 2012, Brazil was named one of ten countries for the SelectUSA pilot programme to attract foreign investment to the United States. As the world’s largest biofuels producers, the United States and Brazil have worked together to help make sustainable biofuels a global commodity53. There are an estimated 70,000 United States citizens living in Brazil54 but the greatest influence on United States perceptions of Brazil is made by the near half a million Brazilian population in the United States, and almost as many again with Brazilian heritage. 49 http://en.wikipedia.org/wiki/Australia%E2%80%93United_States_relations 50 2011 Census QuickStats http://www.censusdata.abs.gov.au/census_services/ getproduct/census/2011/quickstat/0 51 Special Feature: Australians in New York http://newyork.usa.embassy.gov.au/nycg/ ANY1Wi09.html 52 US Relations with Brazil. October 2 2013. US Department of State. http://www. state.gov/r/pa/ei/bgn/35640.htm 53Ibid 54 Brazil http://www.state.gov/outofdate/bgn/brazil/191355.htm 35 The United States is the leading foreign investor in Brazil Marketing Strategies for Tourism Destinations. Target market: USA The end of the 1960s brought a period of transformation, following the end of the United States’ involvement in the Vietnam war. China and the United States resumed trade relations in 1972 and 1973. While there are tensions in United States-Chinese relations, there are also many stabilising factors. The countries are major trade partners and have common interests in the prevention and suppression of terrorism and nuclear proliferation. Their trade relationship is the second largest in the world, behind only that between the United States and Canada. Most analysts characterise present Chinese-United States relations as being complex and multifaceted. The United States government regards China as a competitor in some areas and a partner in others. Though public opinion polls in recent years show that a majority of United States citizens and Chinese have a negative view of the other country, United States residents and Chinese under age 30 have a more positive outlook of each other’s country55. The Chinese diaspora in the United States counts over 3.3 million There are around 71,000 United States citizens living in China56, but by far the greatest influence on United States residents’ perception of China is the large Chinese-American community in the United States. The 2010 US Census Bureau found that Chinese were the largest Asian immigrant group in the United States with over 3.3 million. According to the subsequent 2012 Census estimates, the three metropolitan areas with the largest Chinese-American populations were the combined statistical areas of Greater New York (0.7 million), San Jose-San Francisco-Oakland (0.6 million), and Greater Los Angeles (approaching 0.6 million). New York has the highest Chinese-American population of any city proper, with seven Chinatowns in different parts of the city57. South Africa is a strategic partner of the United States, particularly in the areas of health, security, and trade Since the end of apartheid and with the advent of democracy in1994, the two countries have enjoyed a solid bilateral relationship. South Africa is a strategic partner of the United States, particularly in the areas of health, security, and trade. The two countries share development objectives throughout Africa, and South Africa plays a key economic and political role on the African continent. The United States seeks opportunities for increased United States - South African cooperation on regional and international issues. In 2010, the United States and South Africa launched a strategic dialogue aimed at deepening cooperation on a range of issues of mutual interest and concern58. Trade between the two countries amounted to almost US$16 billion (EUR11.6 billion) with South African exports to the United States amounting to US$8.5 billion (EUR6.3 billion). According to the Organisation for Economic Cooperation and Development, there are 78,616 people born in South Africa that currently live in the United States59. 55 http://en.wikipedia.org/wiki/China%E2%80%93United_States_relations 56 American Diaspora http://en.wikipedia.org/wiki/American_diaspora#cite_note-17 57 http://en.wikipedia.org/wiki/List_of_U.S._cities_with_significant_Chinese-American_ populations 58 US relations with South Africa http://www.state.gov/r/pa/ei/bgn/2898.htm 59 How many South Africans live overseas? http://www.thesouthafrican.com/news/ how-many-south-africans-live-overseas.htm 36 Marketing Strategies for Tourism Destinations. Target market: USA 2.4 Consumer Assessment (TripAdvisor) This section presents an analysis of ratings provided by TripAdvisor users from the United States on three elements of a visitor experience: attractions, accommodation and eateries. While not representative of United States visitors’ behaviour, TripAdvisor ratings allow for cross-destination comparisons on components of a holiday experience. The analysis covers the four destinations competing with Europe in the United States, and four European destinations used as benchmark in this study (France, Italy, Spain and United Kingdom). The results for European countries and competing destinations are presented in Appendix 3. TripAdvisor users in the United States are very satisfied with accommodation, giving an overall rating for the eight destinations of over 4.2, as against a rating of 4 for accommodation in their home country. Leading the way are South Africa with an average rating of 4.6 and Italy with 4.4. The United Kingdom, France and Spain all match the average of between 4.2. and 4.3. TripAdvisor users from the United States rate accommodation in Australia and China at a slightly lower rate, but still higher than accommodation in their own country. Only ratings for accommodation in Brazil are marginally below those of United States accommodation. Average ratings for all destinations in Europe suggest that TripAdvisor users from the United States were in general satisfied with accommodation (just over 4.3). These visitors were most satisfied with the location and cleanliness (at over 4.5) of the accommodation they selected for their stay, while they tended to be slightly less positive when evaluating the quality and value of the rented room (both over 4.2). Service was well rated (midpoint between 4.4 and 4.5.). Quality of sleep was averagely rated (at 4.3). Eateries score the lowest average of the three services in exam, 4.2. Six of the eight destinations receive higher rates from TripAdvisor users from the United States than eateries in the US. The highest rated destinations for eateries are South Africa, Italy and Spain – all between 4.2. and 4.3. Next in order come the United Kingdom, Brazil and France – each just under 4.2. Only eateries in Australia and China are assessed of equal quality as the United States eateries. The attractions category receives the highest ratings from TripAdvisor users in the US, averaging just under 4.6 across the eight destinations. This is slightly above the 4.5 accorded by TripAdvisor users in the United States to attractions in their own country. The top-rated destination for attractions is Italy at close to 4.7, followed by South Africa (4.6), Spain, Australia, France, the United Kingdom and Brazil (each at between 4.5 and 4.6). Only China, despite a good rating of 4.3, scored below the assessment given by United States travellers to attractions in their own country – 4.5. 37 Marketing Strategies for Tourism Destinations. Target market: USA Figure 18: TripAdvisor Ratings of Tourism Services in Competing Destinations TripAdvisor operates sites in 41 countries and 23 languages. TripAdvisor offers 150 million+ reviews and opinions on its site and receives 100+ user contributions a minute. TripAdvisor covers 810,000+ hotels, B&Bs and specialty lodgings, 2.2 million+ restaurants and 420,000+ attractions worldwide. As the world’s largest travel site, with nearly 260 million unique monthly visitors*, TripAdvisor has valuable, global insights regarding travel patterns and trends. TripAdvisor data, such as user traffic patterns and average review ratings, can provide relevant insights for local hospitality and other travel industry businesses. *Source: comScore Media Metric for TripAdvisor Sites, worldwide, Q1 2014. 38 Marketing Strategies for Tourism Destinations. Target market: USA Profile of Europe’s Main Competitors in the United States 3.1 Destination Marketing Organisations Within each competing destination, tourism authorities responsible for promoting their country as a tourism destination in the United States have been identified (Figure 19). Information about these organisations have been collected from existing sources and, whenever possible, through personal interviews. Figure 19: Listing of Competitor Destination DMOs and Tourism Representative Bodies Competitor Destination Destination Marketing Organisations Australia Visit Australia http://www.australia.com Tourism Australia http://www.tourism.australia.com Association of Australian Convention Bureaux Inc. http://www.aacb.org.au Association of Australian Convention Bureaux Inc. http://www.aacb.org.au Brazil Embratur www.visitbrazil.com and http://www.embratur.gov.br/ BRAZTOA – Brazilian Tour Operators Association http://www/braztoa.com.br China China National Tourism Administration (CNTA) http://en.cnta.gov.cn/ China National Tourism Organization (CNTO) http://cnto.org South Africa South African Tourism http://www.southafrica.net USA – Los Angeles Los Angeles Tourism http://www.discoverlosangeles.com/tourism USA – Miami Greater Miami Convention & Visitors Bureau http://www.miamiandbeaches.com/ USA – New York NYC & Company http://www.nycgo.com/ Source: TDI 39 3 Marketing Strategies for Tourism Destinations. Target market: USA The Australian Tourism Sector Australia received 6.5 million international tourist arrivals in 2013, a rise of 5.5% over 2012. Between 2008 and 2013, arrivals grew at the rate of just over 3% a year. Main markets are New Zealand, China, the United Kingdom, the United States and Japan. The United States is Australia’s 4th most important source market after New Zealand, the United Kingdom and China The increase in United States visitor arrivals in 2013 at 6.2% was slightly above the overall rise in that year of 5.5%, a total of 509,000 United States arrivals being recorded. The United States market suffered a downturn in consequence of the financial and economic crisis of 2008/09 with arrivals down through to 2011. The last two years have seen a recovery with growth in United States arrivals of 5 and 6% respectively60. The recovery is continuing in 2014 with a 12% rise in United States arrivals during the first five months of the year61. Tourism receipts totalled US$31.1billion (EUR23.4 billion) in 201362. Expressed in local currency terms the level of tourism receipts shows little change over the past five years, though receipts peaked in 2009 at AUD34.7 billion (EUR21.7 billion)63. When viewed in US dollar and Euro terms, the appreciation of the Australian dollar against these currencies between mid-2008 and 201264, resulted in the 2012 level being higher when measured in US dollars (i.e. US$31.7 billion) and Euros (EUR24.7 billion) than in earlier years. However, in 2013, when the Australian currency declined against international currencies – by 7% against the US dollar and 11% against the Euro - the 5% rise in the country’s receipts in Australian dollar terms became a fall of 2.1% and over 5% respectively in US dollar and Euros. Visitors to Australia from the United States generated AUD2.6 billion (EUR1.8 billion) in total expenditure in 2013. Australia, it is the 10th highest recipient of tourist spending Though there are over 40 countries around the world that receive more international tourists than Australia, it is the 10th highest recipient of tourist spending as a consequence of its long distance from generating markets leading to few low spending, cross border and other short duration visits. 60 Arrivals data archive. Tourism Australia http://www.tourism.australia.com/statistics/ arrivals-data-archive.aspx 61 May 2014. Tourism Australia http://www.tourism.australia.com/statistics/ArrivalMay-2014.aspx 62Ibid 63 OECD Tourism Trends and Policies 2014. March 2014. OECD. 64 Yearly Average Currency Exchange Rates. IRS. http://www.irs.gov/Individuals/ International- Taxpayers/Yearly-Average-Currency-Exchange-Rates 40 Marketing Strategies for Tourism Destinations. Target market: USA Direct tourism GDP for the financial year ending June 2013 amounted to AUD42.3 billion (EUR31.8 billion), up 3.7% over the previous year, for a 2.8% share of the country’s GDP. Tourism provided employment for 544,000 in 2012/1365. The Tourism 2020, Tourism Australia’s Journey 2010 to 2013 report concludes that tourism in Australia: • • • • • • Tourism provides direct employment for half a million Australians generates AUD107 billion (EUR80 billion) in consumption66 , provides direct employment for half a million Australians, represents the country’s leading services export sector, contributes towards the funding of airports, roads, hotels and other infrastructure, assists in the economic development of regional Australia with 45 cents of every dollar being spent outside the major conurbations, achieves a high multiplier – 91 cents generated for every tourist dollar. On 3 October 2013, responsibility for tourism policy, programmes and research transferred from the former Department of Resources, Energy and Tourism to Austrade (the Australian Trade Commission). Australia’s tourism marketing authority, Tourism Australia, remains a separate statutory authority with primary responsibility for the international marketing of Australian tourism, reporting to the Minister for Trade and Investment. Tourism Australia has primary responsibility for international marketing Tourism is one of four Australian National Investment Priorities. In recognition of the importance of high quality infrastructure, products and experiences, as a key component of maintaining the country’s competitiveness as a tourism destination, Tourism Australia, the-then Department of Resources Energy and Tourism and Austrade officially commenced a five-year partnership in 2012 to drive investment opportunities in tourism. The National Long-Term Tourism Strategy, published in 2009, is the overarching Australia tourism industry strategy supported by federal, state and territory Tourism Ministers. The 2020 Tourism Industry Potential, published in 2010, explains what a successful Australian tourism industry will look like in 2020. The Tourism 2020 overview, published in 2011, provides an overview of Australia’s national strategy to enhance growth and competitiveness in the tourism industry. The aims of Tourism 2020 are to achieve increases in: • • • • • overnight tourism spend from AUD70 billion (EUR44 billion) in 2009 to between AUD115 billion and AUD140 billion (EUR80 to 97 billion) by 2020, tourism labour and skills, accommodation rooms, particularly in capital cities, international and domestic aviation capacity, standards in industry quality and productivity. 65 Australian National Accounts: Tourism Satellite Account 2012-13. Australian Bureau of Statistics http://www.abs.gov.au/AusStats/[email protected]/MF/5249.0 66 Tourist Satellite Account, 2011-12, Australia Bureau of Statistics, 2013. 41 A five-year partnership to drive investment opportunities in tourism Marketing Strategies for Tourism Destinations. Target market: USA Key targets for areas in which additional infrastructure investment and/or development is required are: • • increasing accommodation capacity by between 6,000 and 20,000 rooms, increasing international-operated and domestic aviation capacity over 2009 levels by up to 50% and 30% respectively67. It focuses on 6 strategic areas: • • • • • • grow demand from Asia, build competitive digital capability, encourage investment and implement regulatory reform, ensure tourism transport environment supports growth, increase supply of labour, skills and indigenous participation, build industry resilience, productivity and quality. Initiatives included the release of a Tourism Investment Guide, a Tourism Investment Monitor and investment opportunities database; identifying and targeting key overseas investors; and establishing close working relationships with tourism specialists in state and territory tourism investment agencies68. Tourism Major Project Facilitation service launched to assist tourism investment In November 2012 the Australian Government launched the Tourism Major Project Facilitation service to assist new tourism investment in gaining development approvals. A case manager is appointed to significant new tourism projects to provide support and broker solutions to problems. 24 enquiries have been made to the TMPF scheme, four of which – involving investment of AUD2 billion (EUR1.4 billion) and the creation of 12,000 jobs – are being assisted through Australian Government approvals. The 2020 Potential for the Business Events Sector, published in 2013, outlines how Australia’s business events sector has the potential to double the overnight expenditure by visitor delegates to between AUD15.8 billion and AUD16.0 billion (i.e. around EUR11 billion) to by 2020. Tourism 2020, Tourism Australia’s Journey 2010 to 2013, published in October 2013, provides an update on Tourism Australia’s progress through phase one of the Tourism 2020 strategy about ‘setting the foundation’. Tourism Australia is an Australian Government statutory authority and the Federal Government agency responsible for international and domestic tourism marketing, attracting international visitors to Australia and encouraging Australians to travel domestically, both for leisure and business events. Its purpose is to increase the economic benefits to Australia of tourism. To do this it has implemented a new strategic approach – Tourism 2020 – aimed at growing overnight tourism expenditure to as much as AUD140 billion (EUR97 billion) by the end of the decade. 67 OECD Tourism Trends and Policies 2014. March 2014. OECD. http://www.keepeek. com/Digital-Asset- Management/oecd/industry-and-services/oecd-tourism-trendsand-policies-2014/australia_tour-2014-8- en#page6 68 Tourism 2020, Tourism Australia’s Journey 2010 to 2013, Tourism Australia, October 2013 42 Marketing Strategies for Tourism Destinations. Target market: USA As a marketing body, Tourism Australia’s resources are dedicated to facilitating trade marketing opportunities for established businesses that will generate high yielding, sustainable market opportunities. Critical to its global marketing effort is reaching the customers most likely to enjoy what Australia has to offer. Resources are dedicated to facilitating trade marketing opportunities Tourism Australia is highly active in undertaking extensive research into tourist markets, trends and performance with the view to guiding future tourism development and marketing strategies. It disseminates such information widely to the private sector with which it has a number of partnerships and alliances to create demand for the destination using the current theme of “There’s Nothing Like Australia”. Under the Tourism Australia Act (2004) Tourism Australia’s objectives are: • • • • to influence people travelling to Australia to also travel throughout Australia, to influence Australians to travel throughout Australia, including for events, to help foster a sustainable tourism industry in Australia, to help increase the economic benefits to Australia from tourism. Its outcome statement for 2013/14 as approved by the Government is to increase demand for Australia as a destination, strengthen the travel distribution system and contribute to the development of a sustainable tourism industry through consumer marketing, trade development and research activities. Tourism Australia’s current slogan is “There’s Nothing Like Australia”. Tourism Australia receives AUD130 million (EUR90 million) in yearly funding, and total tourism funding in the country (including for Austrade’s Tourism Quality grants and the Tourism Industry Regional Development Fund) is about AUD185 million (EUR129 million). Three quarters of the marketing element of the 2013/14 appropriation for tourism is concentrated on category 1 and 2 markets, including North America. The country’s focus is as a destination of leisure, events (including business events) and education. The Australian Commission of Audit has argued that the benefits of the near twothirds of Tourism Australia’s budget directed to advertising and other promotional activities accrue to tourism operators and, as such, address market failures within the tourism industry. The Commission proposed that marketing Australia as a destination for international tourists should be undertaken at a Commonwealth level rather than on a State-by-State level whereby grant funding for the tourism industry would ceases and Tourism Australia’s funding reduced by a half to focus on international marketing, with the function incorporated into a commercial arm of the Department of Foreign Affairs and Trade69. The Government of Australia rejected the National Commission of Audit proposals and has confirmed that the Federal Budget will include AUD130 million (EUR90 million) in base funding for Tourism Australia and AUD13.5 million (EUR9.4 million) towards the Asia Marketing Fund70. 69 National Commission of Audit Recommendations. http://www.ncoa.gov.au/report/ phase- one/recommendations.html 70 Tourism Funding Safe in 2014/15 Budget. http://www.travelweekly.com.au/news/ tourism-funding- maintained-in-2014-15-budget 43 Tourism Australia receives AUD130 million (EUR90 million) in funding annually Marketing Strategies for Tourism Destinations. Target market: USA Activities include advertising, Public Relations and media programmes, trade shows and industry programmes, consumer promotions, online communications and consumer research. Digital marketing used to personalise tourism product offerings Tourism Australia operates a 35 language website and uses digital marketing focussed on personalising, socialising and mobilising its product offerings, enabling consumers to share their own stories and experiences. Tourism Australia’s Facebook page exceeded 4.5 million fans worldwide in 2012–13. Tourism Australia launched its customised YouTube channel, youtube.com/Australia, in 16 countries in November 2012, the first for national tourism organisations and the travel industry. Tourism Australia is active in around 30 key markets including Australia, promoting the unique attributes which will entice people to visit and targeting those people who its research indicates will spend more and travel most widely. Tourism Australia’s Key Market Regions are: • • • • • • • Australia (domestic), Americas - United States of America, Canada and Brazil, Europe - France, Germany, Italy and the United Kingdom, Greater China - China and Hong Kong, Japan and the Republic of Korea, New Zealand, South and South East Asia - Singapore, Malaysia, India, Indonesia, Vietnam and Gulf Countries. Key markets have been categorised by the potential of growth in visitor spend by 2020. Visitor spend, tracked by the International Visitor Survey refers to the amount of AUD spent by travellers in Australia (*denotes countries where Tourism Australia also targets Business Events in addition to leisure consumers): • • • • • Youth market and experience seekers are key segments visitor spend by these markets has the potential to be worth over AUD5 billion (EUR3.4 billion) by 2020: Greater China* (China and Hong Kong), North America* (United States and Canada), United Kingdom*, Australia, visitor spend by these markets has the potential to be worth over AUD2.5 billion (EUR1.7 billion) by 2020: New Zealand*, Republic of Korea, Singapore, Malaysia, visitor spend by these markets has the potential to be worth over AUD1 billion (EUR0.7 billion) by 2020: Japan*, Indonesia*, India*, Germany, Middle East, fast emerging: Brazil, Vietnam, high priority: Italy, France. In each key market, Tourism Australia targets specific consumer segments which represent the best prospect for achieving the Tourism 2020 targets. Reaching this customer is at the core of all of Tourism Australia’s consumer, distribution and partnership marketing activities. • Youth - the youth segment is an important part of Australia’s visitor mix. Youth contribute nearly AUD12 billion (EUR8.3 billion) annually in tourism spending and represent a quarter of all Australia’s international arrivals, 44 Marketing Strategies for Tourism Destinations. Target market: USA • • • • Experience Seekers are, by definition, looking for unique, involving and personal experiences from their holidays, the Cruise Industry - cruising is an important segment in Australia and one that is significant to our tourism industry, Aboriginal Tourism, Luxury Tourism. To do this they have gained greater insights in the past year to better understand what motivates their target customers to visit Australia through their Consumer Demand Research project, conducted in 11 key international markets plus Australia. The research findings showed that potential visitors have high expectations of Australia, and for those considering a repeat visit the destination’s biggest strengths are its world class beauty, safety and welcoming people. These insights will help to further shape and fine tune Tourism Australia’s marketing in order to maintain Australia as a compelling proposition for travellers. Tourism Australia operates from its headquarters in Sydney and maintains overseas offices in Canada, China, Hong Kong, India, Japan, Republic of Korea, Malaysia, New Zealand, Singapore, the United Kingdom (covering the United Kingdom, Ireland and Nordic countries) and the United States. It has representative offices in Brazil, France, Germany (covering Continental Europe) and Italy. 45 Beauty, safety and welcome are primary motivators for repeat visitors Marketing Strategies for Tourism Destinations. Target market: USA The Brazilian Tourism Sector United States arrivals in 2012 being 586,000, the second largest individual source market International tourist arrivals in Brazil grew by 4.5% in 2012 and by a further 2.4% in 2013 to reach 5.8 million. After strong growth in 2004 and 2005, arrivals plateaued, recording a rate of growth between 2005 and 2012 of slightly under 1% a year71. Arrivals from fellow South American countries account for half of arrivals, with Argentina the leading source country with 1.7 million arrivals in 2012. Europe accounts for 29% of arrivals, leading countries being Germany, Italy, France, Spain, Portugal and the United Kingdom. North American countries account for one-in-eight arrivals with the number of United States arrivals in 2012 being 586,000, the second largest individual source market. Brazil’s receipts from international tourism totalled US$6.7 billion (EUR5.1 billion) in 2013, having grown from US$3.9 billion (EUR3.15 billion) in 200572, an average annual rise of 7% in US dollar terms, and at a slightly lower rate in Euros, reflecting changing currency exchange rates over the period. Travel and tourism’s contribution to Brazil GDP represented 3.5% in 2013 The direct contribution of Travel & Tourism to Brazil’s GDP in 2013 was BRL166.1 billion (EUR55.4 billion)73. This represents 3.5% of GDP. The World Travel and Tourism Council forecasts that the level of contribution would rise by 3% in 2014 and by 3.9% a year between 2014 and 2024 reaching BRL250.2 billion (EUR83 billion), 3.7% of GDP. Adding in indirect contributions, brings the total travel and tourism industry contribution to BRL443.7 billion (EUR149 billion) in 2013, a level that is forecast to rise by 5.2% in 2014 and by an average annual rate of 4.1% between 2014 to 2024 reaching BRL696.6 billion (EUR231 billion)74, over one tenth of the country’s GDP. Travel and tourism directly supported 3 million jobs in 2013 Travel and tourism directly supported 3 million jobs in 2013, representing 3.0% of total employment, with a further three quarters of a million jobs forecast to be added by 2024; while adding on jobs supported by the industry brings the 2013 level to over 10 million by 2024, almost 10% of total employment in Brazil75. 71 UNWTO World Tourism Barometer, Volume 12, Statistical Annex. August 2014 72Ibid 73 Travel and Tourism Economic Impact 2014: Brazil. World Travel and Tourism Council. http://www.wttc.org/site_media/uploads/downloads/brazil2014.pdf 74Ibid 75Ibid 46 Marketing Strategies for Tourism Destinations. Target market: USA The Government of Brazil administrates and plans the development and operation of tourism through the Ministry of Tourism. The Ministry’s mission is to develop tourism as “a sustainable economic activity with a relevant role for the generation of jobs and foreign currency and providing social inclusion”. It seeks to be innovative in its handling of public policies with a decentralised management model, guided by strategic thinking76. The National Secretariat of Tourism Policies has the role of carrying out the national policy for the sector, oriented by the directives from the National Council of Tourism. In addition, it is responsible for the internal promotion and oversees the quality of provision of the Brazilian tourism service. The National Secretariat of Programs for the Development of Tourism is responsible for subsidising the formulation of plans, programmes and actions for the strengthening of national tourism. Its duties are infrastructure promotion and development, and the improvement of service quality77. The 2013-2016 National Tourism Plan78 sets the target of 7.9 million international tourist arrivals by 2016, an increase of 8% a year from the 6.2 million in 2013. Visitor spending is expected to increase to US$10.34 billion (EUR7.6 billion), or of 12% a year. Formal employment in the sector should rise to 3.6 million (an increase of 7% per year). The Plan targets taking Brazil to 3rd position in the world tourist economy by 2022. In the soccer World Cup period of June/July 2014, Brazil expected to receive 600,000 foreigners and benefit from 3.1 million domestic trips. The new Plan builds on the 2012-2015 plan’s strategic guidelines79 of: • • • • • • • expanding participation and dialogue with society, generating job opportunities and entrepreneurship, reducing social and regional disparity, promoting sustainability, providing incentives for innovation and knowledge, establishing regionalisation as a territorial reference for planning, undertaking continuous monitoring and evaluation of the process. The objectives are to: • • • • • encourage domestic travel by Brazilians, increase international tourist arrivals and spending in Brazil, increase Brazil’s competitiveness, strengthen the decentralised management of tourism, prepare Brazilian tourism for more mega events, following the soccer World Cup of 2014 and the Cup America and Summer Olympics scheduled for 2015 and 2016 respectively. 76 Ministerio do Turismo: The Mission http://www.turismo.gov.br/turismo/ingles/ 77Ibid 78 Brazilian Government’s National Tourism Plan http://www.resonanceco.com/Library/ brazilian-governments-national-tourism-plan/ 79 OECD Tourism Trends and Policies 2012 Brazil. http://www.keepeek.com/ Digital-Asset-Management/oecd/industry-and-services/oecd-tourism-trends-andpolicies-2012/brazil_tour-2012-43-en#page5 47 The National Tourism Plan set a target of 7.9 million international tourist arrivals by 2016 Marketing Strategies for Tourism Destinations. Target market: USA EMBRATUR, the Brazilian Tourism Institute - was established in 1966 with the objective of fostering tourism activity by making feasible the conditions for the generation of jobs, income and development throughout the country. With the establishment of the Ministry of Tourism, its role changed to the promotion, marketing and support for tourism destinations and product and service operators. The Aquarela Plan calls for generating consumer awareness about Brazil and attracting more tourists The Brazilian Federal Government and EMBRATUR have implemented the Aquarela Plan which calls for generating consumer awareness about Brazil and attracting more tourists. The international tourist marketing strategy sets forth goals and objectives over the next decade outlining work highlighting five key areas: • • • • • sun and beach, eco-tourism, culture, sports, business/events. A series of Brazilian Tourism Offices have been established abroad, a dedicated management team established to support the uptake and promotion of international events in Brazil, and public relations activities programme undertaken to build a closer relationship with the media. The budget for international marketing of Embratur in 2011 was placed at BRL180 million (EUR78 million), a 40% increase when compared to 200980. The Aquarela Plan has the vision of Brazil as a country with great natural and cultural diversity The Aquarela Plan has the vision of Brazil as a country with great natural and cultural diversity, with a distinctive identity. It sees Brazil as a modern country and a model for sustainability. Its aims are: 1. To show Brazil as a continental, immense country, with a great diversity of product/experience offers for a range of market segments, 2. To develop architecture for the Brazil brand based on four axes: • Brazil destination, an umbrella identity that encapsulates the desired global positioning for the country as a tourist destination, and focussed on the key most beneficial segments for Brazil, • Brazil products, through the support of, and partnership with, the international tourism private sector groups e.g. airlines, tour operators, hotel groups, event organisers etc. with products/services in Brazil, • To prioritise the strengthening of the Latin American market as source markets for Brazil, keeping the strategy of variation of European and North American markets, • To enhance the competitiveness of Brazil through increased accessibility from three source regions: neighbouring markets, intercontinental markets (including Western Europe, the United States and Canada) and very distant markets (namely China, Japan and Australia). 80 Brazil prepares for Olympic-scale expansion. October 2010. http://www.ttnonline. com/Article/10359/Brazil_prepares_for_Olympic-scale_expansion 48 Marketing Strategies for Tourism Destinations. Target market: USA Based on the vision and aims, the positioning (or comparative image) for Brazil as a tourist destination was specified in the Aquarela Plan. From a focus of differentiating itself from its main Latin American competitors, Brazil is now competing with a wider network of destinations, according to different values and strengths, as illustrated in Figure 20. Brazil is now competing with a wider network of destinations Figure 20: Global Position of Brazil Source: Aquarela Plan 2020 As indicated in the aims of the Aquarela Plan, Brazil is seeking both to consolidate its strength in fellow Latin American markets while developing all significant long haul markets with special emphasis on North America, Western Europe and Asia. The global publicity associated with the soccer World Cup and the forthcoming Summer Olympic games gives high exposure to Brazil in these markets and represent the foundation on which Embratur will build its future marketing efforts to meet the ambitious goals set in the 2013-2016 National Tourism Plan. The five areas outlined in section 3.3. will be the key targets. Niches such as gastronomy, luxury, adventure, afro-ethnic, and GLBT (gay, lesbian, bisexual, transsexual) tourism are also being promoted in the United States market. Embratur changed its approach to its overseas network in 2013, opening 13 Brazilian Tourism Offices in four continents; Europe (The Netherlands, Germany, Spain, France, Italy, Portugal and the United Kingdom), North America (3 offices in the United States - New York, Chicago and Los Angeles), South America (Argentina and Peru) and Asia (Japan). The offices will function as real embassies for Brazil’s tourist attractions, gathering information which will be available to operators, travel agents and end consumers, in order to increase their influence on tourists’ choice of destination at the time of planning their trip. The offices will also support Embratur agencies’ marketing and PR actions abroad providing more accurate information about market trends. 49 The global publicity associated with the soccer World Cup and forthcoming Olympic games gives high exposure to Brazil Marketing Strategies for Tourism Destinations. Target market: USA The People’s Republic of China Tourism Sector China received 56 million international tourist arrivals in 2013 China received 56 million international tourist arrivals in 2013, a decline of nearly 4% over 2012. Between 2005 and 2013, arrivals grew at the average annual rate of 2%, a period when it consolidated its 4th place in the international tourism destination rankings81. These figures include arrivals from the Special Administrative Regions of Hong Kong and Macau as well as from Taiwan, with the level of foreign tourists amounting to 20.8 million in 2013, a fall of 5.2% over the previous year. However, the average annual rise in foreign tourist arrivals (i.e. excluding those from the special administrative regions and Taiwan) between 2005 and 2013 was near to 5%, demonstrating the strength of demand. Travel from Hong Kong and Macao accounts for over 80% of all visitors to China Travel from Hong Kong and Macao to China accounts for over 80% of all visitors to China, and for over 62% of overnight international tourists. Travel from the United States and Western Europe makes up to 1.6% and 1.2% respectively of total arrivals, with increases over the period from 2008 to 2012. The United States is the fourth largest foreign market, with the number of arrivals having grown by 24% between 2009 and 2012, though a fall of 1.5% was recorded in 2013 to a level of 2.1 million. The Republic of Korea and Japan are the leading markets for China Excluding Hong Kong, Taiwan and Macao, the leading markets for China are the neighbouring countries of the Republic of Korea and Japan. The United States is the 4th most important source market for China, but ranks as the 2nd leading nonAsian market after Russia. United States tourist arrivals exceeded 2 million in 2013, a fall of 1.5% over 2012. Between 2006 and 2013, United States arrivals have risen by an average of just over 1%, around half the overall international tourist arrival level of around 2% since 200582. Between 2005 and 2013 China’s tourism receipts rose by over 7% a year International tourism receipts amounted to US$51.7 billion (EUR38.9 billion) in 2013, a rise of 3.3% over 201283. Between 2005 and 2013, China’s receipts rose by over 7% a year in US dollar terms (but by over 11% a year in local currency as a result of the fall in the value of the Chinese Yuan Renminbi over the period). China is placed 4th in the international tourism receipts table, as in respect of arrivals, after the United States, Spain and France. 81 UNWTO World Tourism Barometer, Volume 12, Statistical Annex, August 2014. 82 China Tourism http://www.travelchinaguide.com/tourism/ 83 UNWTO World Tourism Barometer, Volume 12, Statistical Annex, August 2014. 50 Marketing Strategies for Tourism Destinations. Target market: USA The direct contribution of Travel & Tourism to Chinese GDP in 2013 was CNY1,487billion (EUR180 billion)84. This represents 2.6% of GDP. The World Travel and Tourism Council forecasts that the level of contribution will rise by 8.1% to over CNY1,600 billion (EUR193 billion) in 2014, and to CNY3,273 billion (EUR395 billion) by 2024, at constant 2013 prices, an average annual growth of 7.4%. The value of the direct contribution primarily reflects the economic activity generated by industries such as hotels, travel agents, airlines and other passenger transportation services (excluding commuter services), but it also includes the activities of the restaurant and leisure industries directly supported by tourists. Adding in indirect contributions, brings the total to CNY5,229 billion (EUR631 billion) in 2013 and a forecast level of CNY11,888 billion (EUR1,435 billion) by 2024, at 2013 values. Travel and tourism directly supported almost 23 million jobs in 2013, representing 3.0% of total employment, with a further 4 million jobs forecast to be added by 2024; while adding on jobs supported by the industry brings the 2013 level to almost 64 million, with a further 29 million anticipated by 202485. The China National Tourism Administration (CNTA) is responsible for tourism, directly affiliated to the State Council. Its main responsibilities are86: 1. Plan and coordinate the development of the tourism industry, prepare development policies, programmes and standards, draft up relevant laws and regulations and supervise the implementation, as well as guide regional tourism, 2. Establish and organise the implementation of market development strategies for domestic tourist, inbound tourism and outbound tourism, organise external publicity and significant promotional activities on the overall image of China’s tourism. Guide the work of China’s tourist institutions stationed abroad, 3. Organise the survey, planning, development and protection of tourism resources. Instruct the layout and development of key tourist regions, tourism destinations and tourist routes and guide the leisure vocation industry. Supervise the operation of tourist economy and take charge of tourist statistics and release of trade information. Coordinate and instruct the Holiday Tourism and the Red Tourism, 4. Normalise the order of the tourist market, supervise and manage the service quality and maintain legal rights and interests of tourism consumers and operators. Normalise the operation and services of tourist enterprise and practitioners. Organise the drafting of standards on tourist regions, tourist services and tourist products, etc., and organise the implementation. Take charge of the overall coordination, supervision and management of tourist safety and emergency rescues. Guide the construction of the ideological infrastructure and the credibility system as well as operations of trade organisations, 84 Travel and Tourism Economic Impact 2014: China. World Travel and Tourism Council. http://www.wttc.org/focus/research-for-action/economic-impact-analysis/ country-reports/ 85Ibid 86 CNTA In Brief http://en.cnta.gov.cn/about/Forms/AboutCnta/CNTAInBrief.shtml 51 Marketing Strategies for Tourism Destinations. Target market: USA 5. Promote the international communication and cooperation of tourism and take charge of affairs relating to the cooperation with international tourist organisations. Establish policies on outbound tourism and border tourism and organise the implementation. Examine and approve foreign travel agencies established in China, examine the market access qualifications of foreign-invested travel agencies and travel agencies engaged in international tourism, examine and approve overseas (outbound) tourism and border tourism cases. Take charge of affairs on special tourism, 6. Establish policies on travel to Hong Kong, Macao & Taiwan and organise the implementation, guide the promotion of tourist markets in Hong Kong, Macao & Taiwan. Take charge of affairs on Mainland residents travelling to Hong Kong, Macao & Taiwan, examine and approve travel agencies of Hong Kong, Macao & Taiwan established in the Mainland, examine the market access qualifications of travel agencies with investments of Hong Kong, Macao & Taiwan, 7. Organise and instruct tourism education and training, stipulate the vocational qualification system and ranking system for tourism employees with relevant authorities and supervise the implementation, 8. Undertake other issues assigned by the State Council. China has embarked on a new era in tourism Roadmap for the restructuring of the current paid leave system China has embarked on a new era in tourism in its national agenda following the release by the State Council of China of The Outline for National Tourism and Leisure (2013-2020)87, aimed at bringing about the complete redefinition of tourism development and management in the country, spark an increase in Chinese outbound tourism and promote a greater distribution of the economic, socio-cultural and environmental benefits of tourism. It presents a roadmap for restructuring the current paid leave system across China and outlines the technical, multi-sector aspects of creating a more productive environment for sustainable tourism development and management in the country. Its release comes four years after the tourism sector in China was acknowledged as a ´pillar´ industry of modern services, recognizing its role as one of the major social and economic industries on the government´s agenda. The successful implementation of the Outline will lead to both a further boost to Chinese inbound tourism (and domestic tourism), and to Chinese outbound tourism around the world. Among the tasks and measures contained in the Outline are88: • • • improvements and ready access to parks, museums etc., increased and improved infrastructure e.g. recreation belts and distinctive tourism villages, family inns and budget hotels, motels and camping facilities, ports for cruise ships and yachts, better protected parks and forests, increased disabled access, product development and activity e.g. encouragement of rural holidays close to cities, development of recreation and leisure activities such as cycling tourism, self-drive, sport and fitness tourism, medical and healthcare tourism, hot spring and snow tourism, cruise and yacht tourism, and focus on traditional culture, 87 China’s New Landmark Strategy. http://asiapacific.unwto.org/en/news/201303-21/china-s-new-landmark-tourism-strategy-outline-national-tourism-andleisure-2013-2020 88 Notice on the Publication of The Outline for National Tourism and Leisure (20132020) by the General Office of the State Council 52 Marketing Strategies for Tourism Destinations. Target market: USA • • • • • • facilities for different market segments (such as seniors, women, children, people with disabilities, rural population) including urban leisure, city sightseeing, cultural recreation, popular science education, cultural performance, healthcare and fitness, shopping, practical and convenient information service system through signage, information points, website development, improved service quality standards through education, training and supervisory programmes, strong leadership and organisation involving clear guidance and liaison with local administrations on the development and management of their tourism sectors, to ensure that tourism and leisure development is fully incorporated into economic and social development plans at all levels, investment in public service infrastructure for tourism and leisure, and encouragement of private sector investment in facility and product development, strong supervision and regulation. The China National Tourism Authority undertakes destination marketing through its network of China National Tourist Offices. The CNTO seeks to work closely with the travel trades in key generating markets through participation at exhibitions and fairs, and promotions. CNTA undertakes destination marketing through its network of offices To strengthen international cooperation in tourism, and to promote the recovery of inbound tourism, CNTA has undertaken a number of large-scale overseas promotional programmes, and organised the successful Sino-Russia Tourism Year in 201289, with the reciprocal Tourism Year taking place in the following year. The CNTO overseas offices are non-profit government organisations. Their mission is to develop and promote all aspects of tourism to China within their given territories. They are responsible for educating both the general public and the travel industry about China. The total CNTA budget in 2012 CNY240.5 million (EUR38.5 million), drawn from central and local governments, funded in part by allocations from the Tourism Development Fund made up from the CNY20 (EUR2.4 ) charge on all outbound travellers. The focus of the CNTA destination marketing activities are travel trade shows, consumer shows, seminars, familiarisation trips and other ongoing promotions. The CNTO offices assist travel agents and tour operators in selling China by providing them with sales tools, including travel brochures, videos, displays, maps, magazine advertising and general information to the public. Buoyed by the success of the tourism exchange programmes with Russia over the past two years, the CNTA is expected to make stronger efforts to promote China as an ideal travel and tourism destination by launching a series of similar marketing activities90. 89 OECD Tourism Trends and Policies 2014 90 Travel and tourism inbound in China http://www.euromonitor.com/tourism-flowsinbound-in-china/report 53 CNTA budget in 2012 CNY240.5 million (EUR38.5 million), drawn from central and local governments Marketing Strategies for Tourism Destinations. Target market: USA Chinese tourism authorities have been slow to embrace Facebook, Twitter and YouTube There is criticism in the Chinese media and travel trade of the China destination website. In the face of intense competition from neighbouring Asian countries, foreign travellers’ online searches for Chinese tourism destinations are increasing much more slowly than for its competitors e.g. the year-on-year growth of the search for Chinese destinations was only 7% in 2012, while the growth for India was 21% and Thailand was 19%91. Chinese tourism authorities have been slow to embrace Facebook, Twitter and YouTube, but the designation of 2014 as the Year of Smart Travel suggests a possible intention to use social media more extensively. A constant in the CNTA’s marketing has been the naming of each year with a specific theme. Starting with “Friendly Sightseeing Year” in 1992, the past two years have been called respectively “China Ocean Tourism Year” and “Beautiful China”. WTTC advised that China should promote the country as a whole In launching the WTTC report92, President and CEO, Mr David Scowsill advised that China should promote the country as a whole, instead of a group of individual provinces.93 The CNTO is actively promoting China in the 16 key markets where it maintains offices i.e. the United States, Canada, the United Kingdom, France, Germany, Italy, Spain, Switzerland, the Russian Federation, Singapore, India, Nepal, Australia, Republic of Korea, Japan, and Hong Kong. The CNTA operates 18 offices in 16 countries with double representation in the United States (Los Angeles and New York) and Japan (Osaka and Tokyo). Most of these are China National Tourist Offices but in Osaka it operates as the CNTA itself and in Hong Kong through Asia Tourism Exchange Centre. 91 China lags behind in inbound tourism. July 2013. http://news.xinhuanet.com/ english/china/2013-07/27/c_132578913.htm 92 Travel and Tourism Economic Impact 2013: China. World Travel and Tourism Council. http://www.wttc.org/site_media/uploads/downloads/china2013.pdf 93 China must ramp up for inbound tourism China Daily USA March 2014 http://usa. chinadaily.com.cn/epaper/2014-03/19/content_17359504.htm 54 Marketing Strategies for Tourism Destinations. Target market: USA The South African Tourism Sector International tourist arrivals in South Africa in 2013 totalled 9.5 million, a rise of 3.8% over the previous year94. This makes South Africa the 30th largest tourist receiving country in terms of tourist arrivals. The increase in 2013 maintains the average annual rate of growth recorded between 2005 and 2013. International tourist arrivals in South Africa totalled 9.5 million in 2013 International tourism receipts amounted to US$9.2 billion (EUR7 billion) in 201395. While this represents a fall of 8.7% in US dollar terms, the sharp fall of the South African rand between 2012 and 2013 – 17.7% and 21.6% respectively against the US$ and the Euro - translated into a rise of 8.7% in local currency. The principal source countries for South Africa are neighbouring African states while the outside Africa the leading markets are the United Kingdom (442,000 in 2013), the United States (349,000), Germany (304,000), and China (151,000)96. The World Travel and Tourism Council forecasts that the level of contribution would rise by 4.3% in 2014, and to ZAR158 billion (EUR16 billion) by 2024, at constant 2011 prices, an average annual growth of 4%. Direct and indirect contributions sum up to ZAR323 billion (EUR25 billion) in 2013 and a forecast level of ZAR478 billion (EU37 billion) by 2022, at 2013 values. Travel and tourism directly supported 645,000 jobs in 2013, representing nearly 5% of total employment, with a rise to 840,000 jobs predicted in 2024. Adding on jobs indirectly supported by the industry brings the 2013 total to over 1.4 million, with a further 3.8 million jobs forecast to be added by 2024, bringing the total employment generated by the tourism industry to 1.8 million in 2024, 10.8% of the Republic’s total employment97. The Department of Tourism is the government body responsible for the planning, management, administration and regulation of the tourism industry. 94 UNWTO World Tourism Barometer, Volume 12, Statistical Annex, August 2014. 95Ibid 96 http://www.southafrica.net/uploads/files/Tourists_Table_A_DEC2013_12052014_1. pdf 97Ibid 55 The direct contribution of Travel & Tourism to South Africa GDP in 2013 was ZAR103 billion (EUR8 billion). This represents 3% of GDP Marketing Strategies for Tourism Destinations. Target market: USA The Department of Tourism operates as a catalyst for tourism growth and development in South Africa. Its mission is stated98: “As a strategy focused department, we are committed to creating a conducive environment for growing and developing tourism through: • • • • Goal is for South Africa to be a top 20 destination by 2020 innovation, strategic partnerships and collaboration, providing information and knowledge management services, strengthening institutional capacity”. The 2011 National Tourism Sector Strategy sets the goal of South Africa being a top 20 destination in the world by 2020. Its mission is to significantly grow a sustainable tourism economy with domestic, regional and international components, based on innovation and service excellence, meaningful participation and partnerships99. The strategy is premised on the values of mutual trust; accountability; respect for our culture and heritage; responsible tourism; transparency and integrity; service excellence; upholding the values of our Constitution; a commitment to transformation, and flexibility and adapting to change100. The National Tourism Sector Strategy101 has three broad themes, as follows: THEME 1: • to grow the tourism sector’s absolute contribution to the Tourism Growth economy, and the Economy • to provide excellent people development and decent work within the tourism sector, • to increase domestic tourism’s contribution to the tourism economy, • to contribute to the regional tourism economy. THEME 2: An • to deliver a world-class visitor experience, Enhanced Visitor • to entrench a tourism culture among South Africans, Experience • to position South Africa as a globally recognised tourism destination brand. THEME 3: Sustainability and Good Governance • to achieve transformation within the tourism sector, • to address the issue of geographic, seasonal and rural spread, • to promote ‘responsible tourism’ practices within the sector, • to unlock tourism economic development at a local government level. 98http://www.tourism.gov.za/Pages/Home.aspx 99 National Tourism Sector Strategy 2011. http://www.tourism.gov.za/AboutNDT/ Publications/National%20Tourism%20Sector%20Strategy%20Executive%20 Summary.pdf 100Ibid 101Ibid 56 Marketing Strategies for Tourism Destinations. Target market: USA A series of Strategic Clusters and Thrusts are set out, each with strategic gaps identified and actions specified to address these gaps: CLUSTER 1: Policy, Strategy, Regulations, Governance, and Monitoring and Evaluation • • • • research, information and knowledge management, policy and legislative framework, collaborative partnerships, prioritising tourism at national, provincial and local government level. CLUSTER 2: CLUSTER 2.1: Tourism Growth Tourism and Development Growth and Development – DEMAND CLUSTER 2.2: Tourism Growth and Development – SUPPLY • • • • marketing and brand management, domestic tourism, regional tourism, business and events tourism. • relevant capacity building, • niche-product development and rural tourism, • product information, • responsible tourism, • investment promotion, • quality assurance. CLUSTER 3: People Development • • • • transformation, decent work, service excellence, community beneficiation. CLUSTER 4: Enablers of Growth • • • • • general tourism awareness among South Africans, safety and security, international and regional airlift, ground transportation, domestic airlift. South Africa Tourism (SAT) is the government agency responsible for international and domestic marketing of South Africa as well as for information management in consultation with provincial tourism authorities. It is under the National Ministry of Tourism and reports through its board to the Minister. The SAT board engages the Chief Executive Officer (CEO). SAT has five divisions as follows: • • • • • finance, quality assurance, operations, human resources and research, Convention Bureau, marketing. 57 SAT is the government agency responsible for international and domestic marketing Marketing Strategies for Tourism Destinations. Target market: USA Marketing is the largest division. Under the Chief Marketing Officer there are ten departments for Africa, Asia and Australia, Europe and the United Kingdom, Americas, Southern Africa, global campaigns, watch list markets, product, communications and e-marketing. There are eleven non-executive board members most of whom are from the private sector, and two executive board members, the CEO and Chief Financial Officer. SAT operates a Forum for Business to drive private sector’s contribution to the implementation of national strategy. It also has a Government Forum, a Knowledge Group (covering research) and a Communications Forum. The Tourism Business Council of South Africa is a key private sector partner A key private sector partner in marketing South African tourism is the Tourism Business Council of South Africa (TBCSA): TBCSA has initiated the Tourism Marketing South Africa (TOMSA) levy, which directly funds marketing initiatives, generally in partnership with SAT. SAT also has an ongoing partnership with the national carrier, South African Airways. SAT’s mission is the development and implementation of a world-class international tourism marketing strategy SAT’s mission is stated as the development and implementation of a world-class international tourism marketing strategy for South Africa. In pursuance of this mission, SAT will: • • • • facilitate the strategic alignment of the provinces and industry in support of the global marketing of tourism to South Africa, remove all obstacles to tourism growth, build a tourist-friendly nation, ensure that tourism benefits all South Africa102 . SAT had an operating budget of ZAR912 million (EUR70 million) in 2013, of which ZAR759 million (EU59 million) was spent on international activities including marketing. In 2012 the overall budget was ZAR820.5 million (EUR79 million) and international and domestic marketing activity accounted for ZAR 772 million (EUR75 million). Note: the South African rand fell by a fifth against the Euro between 2012 and 2013. Tourism promotion is funded primarily by the TOMSA levy Tourism promotion is funded primarily by the Tourism Marketing South Africa (TOMSA) levy. Since its inception in 1998, TOMSA has grown from collecting ZAR9.9 million in 1999 (EUR1.6 million) with less than 50 collectors, to collecting in excess of ZAR90 million (EUR9.8 million) in 2011. The marketing of destination South Africa has increased dramatically over the same period. Currently, the TOMSA levy is collected from four sectors namely accommodation, car rental, tour operator and travel agencies, who collect levy as follows: • • • • accommodation – 1% of room rate, car rental – 1% of vehicle booking, travel agency – 1% of service fee, tour operator – R3 per tour booking. 102 South African Tourism Annual Report 2009/10 58 Marketing Strategies for Tourism Destinations. Target market: USA Representative associations receive a 10% monthly commission of the TOMSA levies collected from members recruited by the associations. South Africa is described as ‘a world in one country’, and presents the visitor a breathtaking variety of scenery, from desert and lush forest, to soaring mountains and vast empty plains. Culturally diversity is also promoted and visitors are drawn to experience for themselves the post-apartheid ‘rainbow nation’. Others are attracted by the golden beaches, big game, and activities such as diving and snorkelling, or bird-watching. There is a national brand, Brand South Africa which aims to increase familiarity and knowledge of South Africa as a viable, world class and profitable business destination in targeted international trade, investment and tourism markets. It supports SAT strategy. South Africa is described as ‘a world in one country’ SAT’s marketing blueprint is actively focussed on improving conversion ratios by brand, increasing awareness and positivity that results in improved closure ratios in core markets. Marketing plans focus on protecting South Africa’s leadership in the wildlife and adventure segments, supported by hospitality, design/art and welcoming people. SAT aims to develop a stronger “emotional connection” with consumers. Marketing plans focus on protecting South Africa’s leadership in the wildlife and adventure segments SAT participates in major travel shows; co-ordinates advertising, public relations and direct mailing campaigns; and holds educational work sessions with the international partners of South Africa’s travel industry. Furthermore, the organisation is active in promoting South Africa as a destination for Business Events through its National Convention Bureau (launched in 2012). The global campaign is driven online with a 360º integrated portal on www.southafrica.net, where consumers learn more about the different experiences and benefits of a journey through South Africa. SAT communicates its brand message on National Geographic, CNN and SuperSport Africa, reaching over one billion consumers. Media reach gaps in the United Kingdom, Germany, India, China and Australia markets are complemented by global cinema buys, train wraps and outdoor activations, supplemented by in-country marketing activities through SAT’s representatives. The global campaign is driven online through www.southafrica.net To enhance global media campaigns, search-engine optimisation (SEO), social media, online media, websites, mobi sites and online applications are used. Public relations and communications form an integral part of campaigns. In e-marketing SAT operates partnerships with leading online travel players such as TripAdvisor, WAYN.com and Expedia. These are supplemented by platforms such as Google Adwords, Lastminute.com, YouTube, Opodo, E-bookers, CNN, NatGeo and a number of others. SAT operates partnerships with leading online travel planners 59 Marketing Strategies for Tourism Destinations. Target market: USA SAT currently markets the tourism destination with the following priorities: Core markets • France, • Germany, • Netherlands, • United Kingdom, • Australia, • China, • India, • Brazil, • United States, • Africa - Angola, Kenya, Mozambique, Nigeria, and Tanzania, being identified by SAT as representing the greatest potential, • Domestic. Investment Market • Italy, • Russia, • Japan, • Republic of Korea, • Canada, • Africa - Botswana, DRC, Ghana, Lesotho, Uganda, Zimbabwe. Tactical Markets • Switzerland, • Singapore, • Africa - Namibia, United Arab Emirates, Zambia, • Watch-list Markets, • Austria, • Belgium, • Denmark, • Finland, • Norway, • Spain. SAT has eleven overseas country offices namely Amsterdam (Netherlands), Beijing (China), Frankfurt (Germany), London (United Kingdom), Milan (Italy), Mumbai (India), New York (United States), Paris (France), Sydney (Australia), Luanda (Angola) and Tokyo (Japan). A further two offices, Brazil and Nigeria, are in the process of being opened. 60 Marketing Strategies for Tourism Destinations. Target market: USA The United States Tourism Sector Total visitation to the city of Los Angeles and the surrounding metropolitan area reached a record level in 2013 of over 42 million. Of these, over 36 million were domestic travellers and 6 million were from foreign countries. Domestic arrivals rose by 2% in 2013 following a growth of 2.7% in 2012. Total international visitation set a record with 6.2 million visitors, a 2.6% percent increase over 2012. Total visitation to Los Angeles reached a record of 42 million in 2013 According to LATCB officials, tourists spent about US$16.5 billion (EUR12.7 billion), generated US$30.5 billion (EUR23.5 billion) in economic benefit, and supported 340,000 jobs in Los Angeles in 2012103. Tourism is one of the key sectors in the development of the economy of the City and County of Los Angeles. Two of the objectives stated in the Los Angeles County Economic Development Corporation‘s Strategic Plan for Economic Development 2010-2014104 are: • • Tourism is one of the key sectors in the development of the economy of LA create employment and business opportunities for local firms by supporting the development of international trade, tourism, and by promoting Los Angeles County as a destination for foreign direct investment, encourage and expand cultural and artistic amenities that celebrate our diversity and attract local and global patrons. The LATCB is a private, non-profit business association whose primary mission is to market and promote Los Angeles as the premier site for leisure travel, meetings and conventions as the City’s official tourism marketing organisation. It has a variety of public and private representation – from hotels, attractions, airlines, airports and TV channels. The LATCB operates a structured partnership scheme with two tiers: Promotional Partners (Amex, Expedia, hotels.com, LA Live, Universal); and Strategic Partners (American Airlines, Amex, Amtrak, La Live, Metro, Universal, Wells Fargo). 10342.2.million people visited Los Angeles in 2013. http://www.kcet.org/living/travel/ travel-news/422-million-people-visited-los-angeles-in-2013.html 104Los Angeles County Strategic Plan for Economic Development 2010-2014 http:// laedc.org/documents/LACountyStrategicPlanforED.pdf 61 LATCB is a private, non-profit business association Marketing Strategies for Tourism Destinations. Target market: USA The mission of LATCB is to advance the prosperity of LA’s visitor economy The mission of the LATCB is to advance the prosperity of L.A.’s visitor economy and the livelihoods that depend on it. This is achieved by sales and marketing to the principal segments of both the domestic and international travel trade and consumer. In particular, L.A. Tourism represents the L.A. destination to the meetings and convention industry nationwide; the international travel trade and traveller; the cruise passenger and cruise lines; the domestic leisure traveller; as well as the worldwide travel media105. Total funding for the financial year 2012-2013 was US$32.9million (EUR25 million), sourced from the City Tourism Occupancy Tax 39%, Tourism Marketing Tax 41%, Co-op & Sponsorships 9%, Los Angeles Airports 8%, and Membership Fees 4%106. Marketing spend was US$22.7 million Marketing spend in the year ending June 2013 was US$22.7million (EUR17.2 million)107. Brand Overview details given at the Los Angeles Tourism Market Outlook Forum108: Our Position: Endless Entertainment The identity of Los Angeles - it’s interesting to look at what we are by looking at what we’re not: Los Angeles is NOT: • • • • • • • one thing, playing it safe, nostalgia, monuments, standing still, one moment in time, Europe. The focus for LATCB: • • • • domestic travel is 85% of the visitors, however international travellers spend 92% more money, last year, LATCB focussed on top six feeder markets, which is 40% of total visitors, discoverlosangeles.com has been relaunched, DineLA grew into the largest restaurant week in America. 105Los Angeles Tourism and Convention Board. http://www.discoverlosangeles.com/ tourism 106LATCB Annual Report FY 12-13 http://www.discoverlosangeles.com/content/annualreport-fy-12-13 107Ibid 108Los Angeles Tourism Market Outlook Forum http://www.heilbrice.com/los-angelestourism-market-outlook-forum-don-skeoch-cmo-latcb/ 62 Marketing Strategies for Tourism Destinations. Target market: USA For 2014: • • • • a tighter focus on the international markets that matter, focussing on China, domestic markets, • continue “You think you know me”, • increase leisure opportunities with a focus on on-line travel agencies, • capitalise earned media opportunities, the “Culture of Tourism” for LA residents, research into tourism to drive strategic planning. Measures of Success for LATCB: • • increase room nights, increase web site visitation. Target Markets: • • • entertainment seekers across the socio-demographic spectrum based on the positioning of endless entertainment, arts and culture, including the culinary scene, arts and culture, LGBT (lesbian, gay, bisexual, transsexual). The LATCB Brand Marketing team globally promotes the endless entertainment experience inherent in Los Angeles, highlighting its unique dining, shopping, entertainment and cultural offerings, and promoting stays at Tourism Marketing District (TMD) and member hotels. LATCB brand advertising and marketing programmes were supported by promotional partners (e.g. American Express, Universal Studios HollywoodSM, L.A. LIVE, Expedia.com and Hotels.com), and supported through strong earned media (Public Relations) and owned media (Social Media) tactics109. The LATCB Brand Marketing team globally promotes the endless entertainment experience In February 2013, LATCB launched its new domestic spring advertising campaign through a series of three TV commercials, titled “You Think You Know Me,” that ran in key domestic markets with a complementary digital campaign. The campaign featured the breadth and depth of activity LA, supported by LA-based celebrities who made cameos in the spots to illustrate that you never know what celebrity you might have a “chance encounter” with when in LA110. New domestic advertising campaign was supported by LA based celebrities The campaign was supported by national and key market publicity and included a hotel promotion, in conjunction with Expedia.com, hotels.com and Orbitz.com to drive hotel room nights. Its results included111: • • • • • more than 60,000 room nights, gross bookings of nearly US$10.5 million (EUR7.8 million), overall room night increase results up to 61% in participating hotels, more than US$11 million (EUR8.1 million) in Earned Media, 6% increase in the intent to visit Los Angeles. 109 LATCB Annual Report FY 12-13 http://www.discoverlosangeles.com/content/ annual-report-fy-12-13 110 Ibid 111 Ibid 63 Marketing Strategies for Tourism Destinations. Target market: USA Promotions - (by type, joint with private sector) included112: • • Revamped website grew year-on-year traffic by 42% dineLA Restaurant Week, with partner American Express, resulted in US$31 million in spending, Arts and Culture campaign, generated more than 26,000 hotel room nights, over 60 million earned and paid media impressions, and US$10.2 million (EUR7.6 million) in direct visitor spending. DiscoverLosAngeles.com revamped website launched autumn 2012, grew yearon-year traffic by 42%. Features include: tips from local celebrities; map-based neighourhood guides; experience builder for custom itineraries; events calendar; 3D virtual tours of convention centre and LA Live; special offers. Social media: Facebook - first United States city tourist board to reach 1 million followers; Twitter - 54,000 followers; Youtube - 758,000 views; Pinterest - 35,000 followers, 54 boards, 1,515 pins. LATCB launched a year-long national LGBT advertising campaign with an emphasis on Southern California’s near-perfect weather and depth of cultural offerings, the top two reasons LGBT travellers choose a destination to visit. The campaign was supported with a robust microsite and a group press trip for top national LGBT media outlets113. Representation throughout the United States, marketing offices in Tokyo, London and Beijing, and some representation in Germany, Australia, Republic of Korea. Greater Miami attracted 14.2 million overnight visitors in 2013 The domestic: international market split was even in 2013 Greater Miami and the Beaches attracted 14.2 million overnight visitors in 2013114, a rise of over 2% over the level of 2012. The domestic:international split was even in 2013, with 7.1 million from each source. Between 2009 and 2013, domestic visits increased by 3% a year, while the growth in overseas visitors grew at the faster annual rate of 5.7%, producing an overall rise in overnight visitation to the area of 4.5% over the period. The top domestic markets are: New York (one-in-four domestic visits in 2013), Chicago (6%), Philadephia (5.6%), Boston (4.3%), and Atlanta (3.9%). Neighbouring Mexico and Canada generate the largest numbers of international visitors in Los Angeles, at 1.7 million and 0.7 million respectively in 2012. China, however, is the biggest driver of overseas visitation recording rises in arrivals of 36% in 2012 followed by a further increase of more than 21% in 2013 with arrivals rising to 0.55 million. In 2013, visitors generated US$22.8 billion (EUR16.9 billion) in direct expenditures, though applying the conventional industry multiplier of 1.5, the direct and indirect impact of expenditures exceed US$34.2 billion (EUR25.3 billion) to the economy of Greater Miami, with around 30% of direct spending attributable to domestic visitors115. The average daily spending of domestic visitors in 2013 was US$239 (EUR177) which, over the average stay in the area of 4.63 nights, produces a total level of spending per visit made by United States residents of US$1,106 (EUR819)116. 112 Ibid 113 Ibid 114 Greater Miami and the Beaches 2013 Visitor Industry Overview http://www. miamiandbeaches.com/~/media/files/gmcvb/partners/research%20statistics/ annual_report_2013 115Ibid 116Ibid 64 Marketing Strategies for Tourism Destinations. Target market: USA Chinese visitors are bigger spenders than visitors from all other international origins. According to federal statistics, Chinese tourists spend an average of US$2,652 (EUR1,960) on each visit compared to the average of US$1,209 (EUR890) from all other foreign countries117. Leisure and hospitality provided employment for 126,200 in Miami-Dade County in 2013, almost one-in-every eight persons employed outside the agricultural sector118. Leisure and hospitality provided employment for 126,200 in 2013 The City of Miami Tourism, Culture and Economic Development Department was established to centralise and unify the City’s tourism and cultural initiatives and programmes. The Department supports, maintains and develops programmes, which generate, satisfy and enhance the City’s cultural institutions and infrastructure, as well as the City’s cultural and tourist industries, while striving to provide year-round tourism activity that enhances both the visitor’s experience and the quality of life of the City’s residents119. The Department also partners with the Miami Beach Visitor and Convention Authority (VCA) and the Greater Miami Convention and Visitors Bureau (GMCVB) to market and promote the City of Miami Beach as a destination. The GMCVB is a private, not-for-profit sales and marketing organisation. It is a private-public partnership with more than 1,000 private business members and four local governments. It is built on its relationships with private sector operators. Strategic partnerships are with American Airlines, American Express TRS Co. Inc., Bank of America, KPMG LLP, and Norwegian Cruise Line Ltd. 42 corporate sponsors are listed in the Miami Vacation Planner. The GMCVB has a focus on partnerships with airlines. The mission of the City of Miami’s Tourism, Culture and Economic Development Department is enriching the economic and cultural fabric of Miami Beach through the support of tourism, production, and entertainment by fostering events and cultural arts programming120. The mission of the GMCVB is to attract, encourage and induce all persons and organisations to visit Greater Miami and its Beaches for conventions, business and pleasure. To this end, it promotes all segments of the community as a preferred destination; and supports and encourages actions and programmes that enhance the desirability and attractiveness of Greater Miami and its Beaches for its visitors. 117http://hmghotelsblog.com/2013/05/21/los-angeles-tourism-2013-hospitality-industrystatistics-new-construction/ 118Greater Miami and the Beaches 2013 Visitor Industry Overview http://www. miamiandbeaches.com/~/media/files/gmcvb/partners/research%20statistics/ annual_report_2013 119 Tourism, Culture and Economic Development. http://www.miamibeachfl.gov/tcd/ 120 Ibid 65 GMCVB is a privatepublic partnership with more than 1,000 private business members Mission is to enrich the economic and cultural fabric of Miami beach Marketing Strategies for Tourism Destinations. Target market: USA GMCVB’s total budget in 2012/2013 is estimated at US$26 million The GMCVB is allocated 13% of tourism taxes US$24.4 million (EUR18.5 million) in 2012/13, with its total budget estimated at US$26.0 million (EUR19.7 million). Details of the brand, positioning and activities are presented in the Greater Miami Convention and Visitors Bureau Marketing Plan 2013/2014121. The current brand positioning was born both of the necessity for evolution, and the fundamental need to become not just an experiential brand, but a relevant, participatory, brand122. The stated goals of GMCVB are to: • • • • • • Objective is to develop a marketing programme that reflects Miami’s unique destination experience The priority target is the sophisticated, well-educated consumer implement strategic brand and tactical consumer advertising programmes, with an emphasis on integrated media programmes, outdoor media, and digital video, increase the performance and efficiency of the GMCVB’s co-operative advertising programmes to increase partner bookings, continue to evolve the GMCVB’s established digital properties, and test innovative platforms, engage and remarket to visitors and locals via mobile, digital and targeted social marketing, reinforce relationships through development of digital marketing resources that support key business-to-business audiences: partners, travel agents, tour operators and meeting planners, expand use of targeted marketing and analytics tools to optimise marketing programmes and identify opportunities for innovation. A key objective is to develop an integrated marketing programme that reflects Miami’s unique destination experience in order to attract and engage visitors and local residents, and create affinity among our members and distribution partners. The primary target customer for Greater Miami is a sophisticated, well-educated consumer looking for the opportunity to experience Miami’s wide range of activities. • • • • • ages 25 to 64, highly educated, above-average income, active lifestyle, summer and shoulder season travellers. In the domestic market, the primary geographic targets include Chicago, Boston, Philadelphia, Washington, DC and Atlanta, with a heavy emphasis on the metropolitan New York market. New York is attracting international tourists from its traditionally strong markets in North America (i.e. Canada, Mexico) and Europe as well as from developing markets in Asia and Latin America, where it has expanded its tourism marketing efforts. Its leading international markets in 2012 were: Canada 1.1 million visitors, United Kingdom 1.0 million, Brazil 0.8 million, France 0.7 million, Germany and Australia both 0.6 million, China just over half a million. 121 Marketing Plan 2013/2014 http://www.miamiandbeaches.com/~/media/files/gmcvb/ guides%20-%20pdfs/13-14-mktng-plan 122 Ibid 66 Marketing Strategies for Tourism Destinations. Target market: USA Marketing programmes are developed for separate segments i.e. Cultural Tourism & LGBT, Heritage Tourism, Boutique & Lifestyle Hotels / Film, Fashion & Entertainment; while campaigns are undertaken targeted at media, travel industry, convention sales and partnerships development. Goals- Advertising and Digital Marketing: to increase overnight visitors and attendant visitor resort, sales, food & beverage taxes, and jobs through optimum occupancy and highest possible room rates. This goal is supported by developing and implementing strategies and tactics that continue to develop and implement a brand image while targeting high-value consumers about the diversity of options and interests in fulfilling the visitor experience. There is a correlating priority goal of developing “year-round” tourism, taking advantage of not only the destination’s peak periods of success but continuing to develop and expand the shoulder and summer periods as well. • • • • • There is a priority to develop “year-round” tourism Strategy 1: implement an Integrated Marketing Programme that reflects Miami’s unique destination experience in order to attract and engage visitors, local residents and meeting planners, and create affinity among our members and distribution partners, Strategy 2: continue to develop and implement programmes that convey Miami’s cosmopolitan, chic brand image. Educate high-value consumers about the diversity of the destination, Strategy 3: understand that branding or brand identity is the total sum of the words, images and associations that form the customer’s perception of the destination. The brand, therefore, is the conveyed personality of the visitor’s experience. It is the promise, the link, or the bridge between the customer and the visitor product, Strategy 4: recognise that the Marketing & Tourism Programme guides the development of the GMCVB’s array of communications efforts including advertising, direct mail fulfilment and promotions, website positioning, media publicity programs, exhibits, etc, Strategy 5: continue to support Miami’s tropical/cosmopolitan image, while further expanding the brand positioning with influential people, trendsetters and others who will present the status of a Miami vacation to potential visitors. Goal: Continue to enhance and expand the GMCVB’s website and digital marketing programmes as outreach, fulfilment and sales and conversion tools. The GMCVB’s website should be a “central meeting place” for all inquiries about a vacation to Greater Miami and the Beaches. • • Strategy 1: continue to update the GMCVB’s digital web properties in order to stimulate consideration of Miami as a vacation option, and increase visitation and usage of GMCVB member offerings, Strategy 2: enhance and expand digital marketing programmes in order to leverage the online medium’s reach, engagement and conversion potential. The GMCVB has an extensive presence across all major social media channels: Facebook - 150,000 likes; Twitter – 89,000 followers; Youtube - most views on a video is 45,000; Pinterest - 1,932 followers, 21 boards; Flickr - hosting images of trade events, not consumer focussed; and Instagram - consumer facing, updating every couple of days. 67 Enhance and expand GMCVB’s website and digital marketing GMCVB has an extensive presence across all major social media channels Marketing Strategies for Tourism Destinations. Target market: USA Goals - Cultural Tourism and LGBT: • • • • • • • • • • • Integration of heritage tourism into all programmes work with the GMCVB Community Relations Committee to help secure state backing for a tour guide ordinance for Miami-Dade County and expand Heritage Tourism in areas such as Little Havana, Overtown, Little Haiti and others, in addition to Art Deco, promote the architectural aspects in the area’s architectural landmarks, and showcase Miami’s heritage by highlighting Village West, Little Havana, Little Haiti and Virginia Key including Miami Marine Stadium, implement a Cultural Tourism and Heritage travel programme including hosting and facilitating familiarisation tours, industry presentations and collateral support, further ongoing support of major festivals and events, supplemented by a targeted advertising effort that will showcase the Miami brand and the signature LGBT events in the community, with the support of City of Miami Beach officials, further promote the highly successful Gay Pride Miami Beach, and promote “Orgullo” — the newest Gay & Lesbian Hispanic Heritage Pride Event in Miami Beach, implement a targeted LGBT Travel programme including participation in trade shows, conferences and special events in partnership with the Miami-Dade Gay & Lesbian Chamber of Commerce and other key stakeholders, continue to strengthen the strategic alliance with the Miami Design Preservation League (MDPL) to help showcase and promote Miami’s Boutique & Lifestyle Hotels and the Art Deco District, assist in providing Gay and Lesbian sensitivity training for tourism industry employees and help the Miami-Dade Gay & Lesbian Chamber of Commerce develop its Flamingo Hospitality Programme, as a board member, continue to work with the Miami-Dade Gay & Lesbian Chamber of Commerce and its tourism/travel programmes, continue the expansion of Miami Museum Month to include more Miami museums and highlight Miami’s museum product, attract new conferences to the destination: The Sustainable & Authentic Florida Conference and DANCE/USA, and work for the success of Out Games 2017, the largest LGBT sporting event in the world. Goals - Heritage Tourism: • • • • • • • integrate Heritage Tourism into all 10 monthly Miami Temptations Programmes, attend national tradeshows to obtain the latest information about Heritage Tourism and to learn how to develop strategies to market to the Cultural & Heritage Traveller, develop a new Heritage Neighbourhood/Cultural Guide that will showcase the diverse heritage neighbourhoods that Miami has to offer, develop relationships with community partners to expand the GMCVB’s role in each of the heritage neighbourhoods, distribute the Heritage Guide year-round through various visitors centres and relevant conferences, partner with Visitor Centres for Heritage Tourism integration, award partnership grants to small businesses in additional heritage neighbourhoods, 68 Marketing Strategies for Tourism Destinations. Target market: USA • • • • promote heritage and cultural related events via the “Miami Insider” e-newsletter and social media posts, expand the heritage neighbourhood sections within the new MiamiandBeaches.com, work with the Media Relations Division to develop press trips such as the “Highway to Heritage” Press Trip and the African American/Black Media Press Trip, continue to pitch the multicultural assets of the community and its heritage neighbourhoods to media from all markets, domestic and international. Goals - Boutique & Lifestyle Hotels / Film - Fashion & Entertainment: • • • • • • • • • • • continue to pitch the multicultural assets of the community and its heritage neighbourhoods to media from all markets, domestic and international, further expand the Boutique & Lifestyle Hotels/Film, Fashion & Entertainment programme, through specialty trade, partnerships and consumer lifestyle, focussing on film, fashion, entertainment, music, production, travel agents, design events, lifestyle consumers and the LGBT market, both nationally and internationally, work closely with several marketing divisions across the GMCVB to further expand a dedicated social and traditional media strategy for Boutique & Lifestyle Hotels, design and implement a Boutique & Lifestyle Hotels/Film, Fashion & Entertainment media plan to support sales and marketing efforts, attend both national and international trade shows, consumer shows and VIP functions to generate leads with travel agents and lifestyle/ urban consumers with primary interest in Miami Boutique & Lifestyle Hotels, develop sponsorships/partnerships and new opportunities with appropriate brands at several lifestyle events, partner with the Miami-Dade Office of Film & Entertainment, the City of Miami Beach Department of Tourism and Cultural Development and the City of Miami Mayor’s Office of Film, Arts & Entertainment to support the production industry, promote the destination to the local production market and key decision makers in the industry, as well as location scouts at the national and international levels, via the Miami in the Spotlight book, support Boutique & Lifestyle Hotels Press Trips, in addition to targeting lifestyle publications with continued emphasis on Miami Boutique & Lifestyle Hotels, develop partnerships at the national and international levels with events, festivals, and conferences specifically catering to the fashion, music, film, production, commercial, and design and architecture industries, further expand the alliance with the Miami Design Preservation League (MDPL) to help showcase and promote the Boutique & Lifestyle Hotels and the Art Deco District. 69 Marketing Strategies for Tourism Destinations. Target market: USA Influence press and consumer perceptions about Miami Goals - Media Relations and Programmes: Influence press and consumer perceptions about Miami as an art-centric, heritage-rich, tropical and cosmopolitan destination of choice to the high-value customer through: placement of editorial stories in a variety of consumer and travel media outlets in core markets; and through experiential promotional consumer experiences and stunts. • • • • Increase meeting business Strategy 1: expand our international Public Relations network, Strategy 2: create stronger and more relevant editorial calendars as dictated by market needs and nuances, Strategy 3: reach out to key consumer travel editors, contributing editors and freelance writers who represent major publications within our target markets, to reinforce the brand, Strategy 4: host production crews for strategic broadcast opportunities. Goal: Promote Miami as the preferred venue for meetings, trade shows and public shows to increase meeting business. • • Strategy 1: direct a Press Release Programme promoting meeting facilities, development updates and new tourism products to targeted meeting planner publications, Strategy 2: provide advertorial content to trade publications. Goal: Create experiential consumer marketing opportunities in key markets that resonate and encourage engagement with the Boutique & Lifestyle Hotel brand as well as the Miami and Beaches brand. • Influence and educate travel planners Strategy: continue to promote the Boutique & Lifestyle Hotel brand via a road tour and leverage strategic brand partnerships in order to benefit from non-competing brand equity. In addition, the GMCVB will focus on “owning” the event and having a larger share of voice through stronger social media integration. Goal - Travel Industry Sales: Influence and educate travel planners and travel industry decision makers about Greater Miami as the destination of choice for their clients and successfully meet their sales objectives by providing comprehensive support. • • • • Strategy 1: expand the scope of services in the GMCVB’s representation network, Strategy 2: continue to strengthen partnerships with airlines, cruise lines and tour operators globally, Strategy 3: design and direct an annual International and Domestic Travel Industry Sales Programme which will interact with and support key travel planners and influencers in key and emerging markets, Strategy 4: create supporting programmes designed to target a variety of High-Value Customers (leisure and international groups) based on creating consumer and trade awareness and demand. 70 Marketing Strategies for Tourism Destinations. Target market: USA Goal - Convention Sales and Services: Maintain long-term bookings of conventions and trade shows at the Miami Beach Convention Center (MBCC) and increase hotel meetings in 2014 and beyond. • • • • Strategy 1: generate Miami Beach Convention Center leads by targeting cities in select geographic areas and businesses in key categories, Strategy 2: continue to generate excitement about new city developments by representing the destination at major trade shows and meetings, and by continuing the convention destination familiarisation review programme, sponsorships at industry functions, conducting small dinner destination events and taking showcase events on the road to tell the destination’s story with the new developments, Strategy 3: continue to target major multi-management and trade show companies which represent a significant number of organisations that can generate new business for the Convention Center and individual hotel properties, Strategy 4: advertise in key trade publications to position Greater Miami favourably, highlighting new developments that will draw attendees for trade shows, smaller meetings and conventions. Goal: Continue to develop short-term business opportunities targeting corporate and association meeting planners with short-term meeting requirements. • Strategy: maintain the staff in our sales department, with managers handling both small and large groups for continuity of service to the customer and best usage of sales staff. Goal: Maintain and confirm a defined number of annual long-term Miami Beach Convention Center bookings of conventions to generate a defined number of room nights for our hotel community. • • Strategy 1: Washington, DC sales office to accomplish sales objectives through personal sales calls and telephone sales efforts, and to conduct extensive networking at Washington, DC industry events, Strategy 2: conduct small client dinners for 10-12 association and trade show clients in order to update them on hospitality developments in Greater Miami. Goal: The Convention Sales Department will continue to develop strong communication with the destination’s hotels and other key business partners. • Develop shortterm opportunities targeting corporate and association meeting planners Maintain and confirm long-term convention center bookings Strategy: maintain and strengthen relationships with annual trade show clients that have made the Miami Beach Convention Center their home, by soliciting their input to identify industry-wide trends and suggestions for increasing Miami’s attractiveness as a convention destination. Goal: Produce new business through the Washington, DC remote office. • Maintain longterm bookings of conventions and trade shows Strategy: continue roundtable meetings with key hotels as well as other business partners to share ideas and discuss marketing opportunities, thereby keeping key business partners informed of the Bureau’s responsibilities to the community while discussing current and future goals. 71 Produce new business through the Washington, DC remote office Develop strong communications with hotels and other business partners Marketing Strategies for Tourism Destinations. Target market: USA Grow a base of GMCVB members/ partners to provide a base of services and marketing tools Goal - Partnership Development: Establish and continue to grow a core base of GMCVB members/partners to provide visitors and convention attendees with a broad base of services and marketing tools. • • • • • Strategy 1: create more actual and perceived value for members, particularly in the benefit training area. Continue to increase the quality and level of participation in the GMCVB through social media and member-to-member interaction with personalised outreach from the sales and support team for opportunities for members to showcase their brands and services, Strategy 2: pursue more, and maintain all current, Corporate Partner level members, as well as expand general membership by targeting previously untapped companies. Maximise Corporate Partner membership retention through personalised communications and invitations throughout the year, Strategy 3: continue to grow the visibility of the Medical Tourism Programme. Create more value and buy-in by existing partners. Increase the number of partners, Strategy 4: work closely with the GMCVB Temptations Programme team (i.e. cruising, romance, shopping, sports, museums, film, spa – August, Miami Spice – September, attractions. Miami Live events) to showcase the benefits of participation to new target members and existing partners while increasing the quality and depth of programmes, Strategy 5: expand the Miami Begins with Me Customer Service initiative, with re-energised training at MIA, PortMiami and with the Taxicab Advisory Group, and launch a new public awareness campaign to engage consumers to value the importance of tourism and always lend a helping hand or share a friendly smile with visitors. The GMCVB maintains representation in California, New York, Washington DC, and Miami. It also runs 2 offices in Canada; 25 offices throughout Central America, South America, and the Caribbean; 10 throughout Europe, and has representation in Russia, India, and China. New York attracted over 54 million visitors in 2013 New York City attracted over 54 million visitors in 2013, maintaining the growth pattern since the formation in 2006 of the city’s marketing organisation, New York City & Co. Between 2006 and 2013, visitor numbers rose from under 44 million at an average annual rate of over 3%, despite a fall in 2009, since when growth has been at 4.5% a year. Domestic visitors accounted for just under 80% of the total in 2013, a 3 percentage point fall compared with 2006, as a faster growth in international tourist numbers than in domestic visits was recorded between 2006 and 2013123. New York is attracting international tourists from its traditionally strong markets in North America (i.e. Canada, Mexico) and Europe as well as from developing markets in Asia and Latin America, where it has expanded its tourism marketing efforts. Its leading international markets in 2012 were: Canada 1.1 million visitors, United Kingdom 1.0 million, Brazil 0.8 million, France 0.7 million, Germany and Australia both 0.6 million, China just over half a million. 123 NYC & Co 2013 Annual Summary http://www.nycgo.com/assets/files/ pdf/2013annualsummary.pdf 72 Marketing Strategies for Tourism Destinations. Target market: USA Since 2006, the City’s share of inbound overseas arrivals in the United States has increased from 28% to 33%. Each share point increase has generated an additional US$750 million (EUR570 million, taking the average exchange rate over the period) in direct spending and more than US$1 billion (EUR750 million yearly average) in economic impact annually. In total, since 2006 the economic impact of tourism has grown 42% to reach US$55.3 billion (EUR41 billion) in 2012124, and an estimated US$60 million (over EUR43 billion) in 2013. The City’s share of inbound overseas arrivals in the US has increased to 33% Direct tourist spending was just under US$39 billion (nearly EUR29 billion) across the City’s five boroughs in 2013, having grown from US$26 billion (EUR 20.5 billion) in 2006, at an average annual rate of 5.8% (in US dollar terms)125. Leisure and hospitality provided employment for over 350,000 in the five boroughs of New York City in 2013126. The tourism sector is strongly supported by the New York Mayor’s office and the economic development departments of the five boroughs. It is seen as a key component in the City’s economy: Leisure and hospitality provided employment for over 350,000 “Diversifying our economy and making tourism a focus has resulted in record after record for our tourism industry, including employment, which continues to show growth and strength,” Deputy for Economic Development Mayor Robert K. Steel127. The various City government departments – City Planning, Economic Development, Small Business Services, Environmental Protection – each have policies and programmes to support the growth of tourism and recreation. As an example, The Department of Environmental Protection opened over 5,900 acres of Cityowned land across the watersheds for the first time for public recreation in 2013; and established new recreation opportunities on lands and reservoirs that were already open. It worked with its partners to: • • • establish new hiking trails, create a rental boating programme at four reservoirs in the Catskills, allow state-licensed outdoor guides to lead hiking, fishing, and other tours on water supply lands for the first time128. 124 New York City Tourism: a Model for Success http://www.nycgo.com/assets/files/pdf/ New_York_City_Tourism_A_Model_for_Success_NYC_and_Company_2013.pdf 125 NYC & Co 2013 Annual Summary http://www.nycgo.com/assets/files/ pdf/2013annualsummary.pdf; NYC Statistics http://www.nycgo.com/articles/nycstatistics-page 126 Ibid 127 Mayor Bloomberg Announces New York City Will Reach a Record 54.3 Million Visitors in 2013 – Increase of Nearly 20 Million Additional Annual Visitors from 2002 http://www1.nyc.gov/office-of-the-mayor/news/393-13/mayor-bloomberg-new-yorkcity-will-reach-record-54-3-million-visitors-2013-#/0 128 Department of Environmental Protection Opened Nearly 6,000 Acres of Watershed Land for Recreation in 2013 and Added New Programs to Support the Catskills Tourism Industry http://www.nyc.gov/html/dep/html/press_releases/14-003pr.shtml#. VAm3ORbp9i0 73 Various government departments have policies to support the growth of tourism and recreation Marketing Strategies for Tourism Destinations. Target market: USA NYC & Co is a public-private membership based organisation New York City & Company (NYC & Co) is a public-private, membership-based organisation. It was formed in 2006, when the private sector and public sectors merged to create a single full-service entity. Additionally, NYC and Company Foundation is a charitable and educational organisation that supports tourism to NYC by promoting arts, cultures and sports. There are 2,000 businesses on the membership roster There are 2,000 businesses on the membership roster including hotels, restaurants, retailers, entertainment venues and cultural attractions in the hospitality and tourism industry. These sectors are split into 6 board committees: • • • • • • NYC & Co is predicated entirely on its partnerships arts & culture, dining, retail, trade shows, hotels, Broadway, entertainment & attractions. NYC & Co is predicated entirely on its partnerships, which are at the core of every activity. The company has a department specifically for generating corporate partnerships and sponsorships http://www.nycandcompany.org/partnerships. This department offers partners access to services and media assets. Custom packages are developed that allow partners to avail of New York City assets, whether as part of a co-branded campaign, or using NYC & Co media for their own purposes. NYC & Co media include outdoor spaces (such as bus shelter advertising space, street pole banners), or space on NYC media group TV channel which reaches 7.3m households across 5 cable networks. All of the major campaigns have a supporting partner. These include Amex, OpenTable, Sony, Travelocity, Time Out New York, Syfy channel, QVC. There are also cross-promotion activities with partner cities such as London, Sao Paulo, Madrid and Seoul. Promotions are supported by deals with airline carriers. The NYC & Co website states its mission as follows: NYC & Company is New York City’s official marketing, tourism and partnership organisation. Our mission is to maximise travel and tourism opportunities throughout the five boroughs, build economic prosperity and spread the dynamic image of New York City around the world. With an array of major communication channels— including nycgo.com, our digital kiosks, Official NYC Information Centers and publications—NYC & Company becomes the ultimate resource for visitors and residents to find everything they need about what to do and see in New York City129. NYC & Co’s budget in 2013 was US$36.8 million (EUR27 million), generated through eight different sources. Its City funds decreased by US$1 million (EUR0.7 million), or 7%, as a result of City budget reductions. The Company’s other sources of revenue increased by US$3.1 million (EUR2.2 million), or 15%, due primarily to its work with the National Football League to facilitate the City’s co-hosting of Super Bowl XLVIII. Increases were also realised in website advertising revenue and ticket sales as a result of traffic increases and improved site functionality, and in “Other Income” due to increased attraction ticket sales at the Company’s expanded Official NYC Information Center platform. 129 NYC The Official Guide http://www.nycgo.com/about-us/ 74 Marketing Strategies for Tourism Destinations. Target market: USA Figure 21: NYC & Co’s Revenues, 2012 and 2013 Source of Funds 2012 2013 S % S % New York City Funds 13.5 38.9 12.5 34.0 Sponsorships 6.9 19.9 8.8 23.9 Member Dues 4.5 13.0 4.7 12.8 Publications 2.3 6.6 2.5 6.8 Website 2.0 5.8 2.4 6.5 Other Income 3.3 9.5 4.2 11.4 Licensing 1.4 4.0 1.1 3.0 Other Grants 0.8 2.3 0.6 1.6 Total 34.7 100.0 36.8 100.0 Source: NYC & Co 2013 Annual Summary New York City is fortunate in having nearly 100% global brand recognition but to reach 55m in 2015 they will be focussing on: • • • • • targeting emerging markets with large growth potential i.e. Brazil, India, China, targeting the youth, families, seniors and LGBT (lesbian, gay, bisexual, transgender) segments, five borough promotional strategy, aimed at ‘intrepid’ international traveller, repeat visitor, and local audience, power of culture. Since New York City’s cultural institutions draw almost half of the visitors to the City, supporting and promoting cultural assets is seen as key, heavy digital focus - all tools developed to emphasise core messages, while removing any barriers to booking. Market positioning varies according to geographic market, with a focus on the City’s icons to entice first-time visitors from Asian and other growth markets, and the encouragement of repeat visitation from Europe using the slogan “live like a local”. For the domestic United States traveller, the focus is on demographic groups, especially families. In the ‘Model for Success’ document130, the target groups are explained: • • Neighbourhood tourism. Strong emphasis in moving visitors from Manhattan out to the 5 boroughs. Campaign called Neighborhood X Neighborhood launched in 2013, supporting local businesses and distributing tourism throughout the area. Repeat visitors are a strong component of this, having already seen the traditional spots, and with some previous knowledge, they are attracted to lesser known areas, Lesbian / Gay / Bisexual / Transexual (LGBT). Many products and campaigns developed to market to this audience. The Rainbow Pilgrimage celebrates the 40th anniversary of modern gay-rights movement. Following the legalisation of gay marriage in the city, NYC I Do focuses on LGBT looking to marry or honeymoon in the city, 130 New York City Tourism: a Model for Success http://www.nycgo.com/assets/files/pdf/ New_York_City_Tourism_A_Model_for_Success_NYC_and_Company_2013.pdf 75 New York City has nearly 100% global brand recognition Market positioning varies according to geographic market Marketing Strategies for Tourism Destinations. Target market: USA • • • NYC & Co develops a wide array of initiatives and promotional platforms Youth. To attract the Youth Traveller, they launched NYC<30 to showcase the city as a rite of passage. Additionally, they are looking to legalise hostels, which are currently not registered - this alone is expected to bring in additional 175,000 visitors, Family. A heavy promotional drive to package New York City to families, pulling together the family-friendly attractions across the boroughs. The official NYC Family Ambassador programme drove a 15% increase in family travel, Seniors. A great opportunity due to the growing size of this segment, and their flexibility of travel time. NYC & Co work with AARP (American Association of Retired Persons) to reach this market, including special access to Broadway Week tickets. NYC & Company develops a wide array of initiatives and platforms that support and promote the City and help drive traffic to member businesses. Programme examples include: • • • • NYC Restaurant Week (Summer/Winter): A 21-year-old programme celebrating NYC’s vibrant and diverse dining culture, offering prix-fixe lunch and dinner menus at hundreds of the City’s finest restaurants, Broadway Week (Fall/Winter): A programme featuring two-for-one ticket offers to participating Broadway shows, Save the Date: A dynamic planning tool that allows locals and visitors to discover events and offers in New York City throughout the year with plenty of notice. Visitors can find savings, deals, tips and events to optimise their New York City experience, NYC Culture Collection: A programme that highlights offers for cultural programming—from zoos and botanical gardens to museums and performance venues—across the City. Each quarter, an area of focus (e.g., dance, visual arts, outdoors and recreation) is featured and promoted on nycgo.com through email campaigns and in collateral pieces distributed at Official NYC Information Centers and Kiosks and the participating cultural institutions. NYC & Co participated at an extensive range of travel trade shows, including: • • • • • ABA, DSA, Cruise3Sixty, IPW, SYTA. as well as a total of 28 convention sales shows and events over the course of 2013131. As the official guide to New York City, nycgo.com and supporting channels work to stimulate visitation to, and navigation of, the five boroughs. This is achieved through timely, original editorial content, dynamic trip-planning tools and e-commerce channels, designed to ease the trip-planning process for our visitors. The website also serves as the hub of activity for all NYC & Company marketing programmes, a platform to showcase member businesses and an effective advertising vehicle for partners to generate new business. 131 NYC & Co 2013 Annual Summary http://www.nycgo.com/assets/files/ pdf/2013annualsummary.pdf 76 Marketing Strategies for Tourism Destinations. Target market: USA In 2013 nycgo.com reached and influenced more than 12 million tourists and locals. Visitation to the desktop site grew 18% compared to 2012, and traffic is up over 125% since the site’s relaunch in 2009. The mobile site grew 23% in 2013 compared to 2012; mobile traffic is up 126% since 2011. With an average of 5 million page views per month, five page views per visit and 10 minutes spent on nycgo.com per visitor, users are increasingly engaging with the site to learn about the City, plan their visit and book their trip. In 2013, developments included132: • • • • introduction of an enhanced hotel booking engine, powered by Booking.com, exclusive to NYC & Company members, development of a new e-commerce experience for purchasing Broadway tickets; enhancement of the site-wide e-commerce channels; and relaunch of the site’s special offers platform - all with the aim of generating new business for members and facilitating planning for visitors, relaunched the mobile site, featuring a new design, and enhanced geo-targeting capabilities, created a new look and enhanced navigation on the core nycgo.com desktop home page. NYC & Company has an extensive presence across all major social media channels: Facebook - 113,000 likes; Twitter – 119,000 followers; Youtube – 180,000 views over the six years it has existed; and Instagram – 6,401 followers, 500 posts. New York City & Company has only two offices in the United States: in New York itself, and in Washington DC. NYC and Company has marketing teams in 18 foreign markets. 132 Ibid 77 In 2013, nycgo. com reached and influenced more than 12 million tourists and locals Marketing Strategies for Tourism Destinations. Target market: USA 3.7 Conclusions The four shortlisted international destinations competing with Europe for the United States tourist are pursuing product development and marketing strategies that, in overall terms: Europe’s competitors are targeting established source markets and newly emerging ones • Approaches recognise the trend towards authentic and self-fulfilling visitor experiences • • • Europe’s competitors are adopting a market:product matching approach • • target both established source markets and newly emerging ones, seeking a balance between the two groups. Australia, for example, identifies fast emerging markets for marketing efforts (e.g. Brazil, Vietnam) as well as those with high earning potential (e.g. China, North America and domestic Australia), regard the United States as a priority market. It is the second largest market in terms of overseas spending. It also has relatively low levels of participation in overseas travel, with only one-third of the United States population owning a passport. Between 2000 and 2012 passport ownership doubled, an indication that the United States traveller is increasingly engaging in overseas travel133, gear their product development and marketing approaches in recognition of the trend for United States citizens in all segments to increasingly seek experiences which provide a rounded appreciation of the natural and cultural heritage of the destination, thereby providing an authentic and self-fulfilling visit. One strategy by which Australia and South Africa achieve this goal is through the sponsorship of television programmes that illustrate the range and diversity of tourist attractions and activities in their countries, identify combinations of different facets of their natural and cultural attributes to appeal to different segments within source markets, with a focus on a diversified range of things to see and do, something that is important for the increasing numbers of United States citizens using digital technology in planning their own trips. The ability to bring the destination alive in the homes of United States citizens is being exploited by Tourism Australia through a customised YouTube channel and a website that features personal experiences of visits, undertake research leading to product/experience development and marketing strategy planning based on a market:product “matching” approach in order both to realise the potential from these various market segments, and to frame marketing strategies and utilise communications methods that resonate with the values and desires of these segments. This is particularly important for those United States travellers who are highly influenced in making the destination decision by the extent to which it is seen as an “aspirational” destination. Again, Australia is at the forefront of tailoring its marketing strategy on the basis of detailed understanding of the requirements and preferences of consumers in its target markets through the Consumer Demand Research project. This research identified the priorities for the United States traveller to Australia as: safety and security, value for money, good food and wine, world class beauty and natural environments, and friendly locals, provide reassurance about issues of safety, ease of travel and price levels – concerns that many United States travellers have. South Africa’ National Tourism Strategy addresses the need to prepare its population by instilling a “tourism culture” in South Africans and focussing on providing educational and training programmes leading to good jobs in the industry producing benefits to local communities, 133 Record number of Americans now hold passports. http://www.forbes.com/sites/ andrewbender/2012/01/30/record-number-of-americans-now-hold-passports/ 78 Marketing Strategies for Tourism Destinations. Target market: USA • all competing destinations effect their marketing strategies of showing their attributes in the most attractive way designed to influence destination decision-making through wide ranging marketing communications and promotional activities. Central – and increasingly important – in the marketing tools used are digital electronic technology applications in recognition of the high level of use of the internet, online booking channels and social media by United States travellers. The multilingual destination websites provided by Australia, Brazil, China and South Africa enable prospective tourists to research and arrange personalised itineraries related to their specific interests. The three selected United States cities are all receiving large numbers of domestic visitors and seek to maintain volumes by targeting younger age groups, families with children who may not have previously visited the city, past visitors attracting them to see parts of the destination not previously experienced, the LGBT segment, and conventions and events. However, responding to the faster growth rates being achieved in recent years, and recognising the high – but to date – still largely unrealised potential of international markets, United States cities are concentrating their marketing efforts on the main foreign markets (e.g. Canada and the main European markets for all three cities, China and other Asian markets for Los Angeles and New York, Brazil and other Latin American markets for Miami and New York). In selecting the destinations competing with Europe to be subject to study in respect of the United States market, it is clear than many destinations are able to present combinations of features that satisfy United States travellers’ growing desire to understand and fully experience the destinations they visit. Consideration was given to: • • • • • • • • the recent growth trends in tourism from the United States, and future motivational, attitudinal and behavioural changes, current and planned future destination marketing strategy and priority given to the United States market, the extent to which the destinations compete for the same/similar market segments in the United States market as Europe does, price levels, airline connectivity, political, economic and socio-cultural links, overall destination tourism policy development, entry requirements for United States visitors. On this basis, the destinations selected for full analysis and assessment in respect of the United States travel market are AUSTRALIA SOUTH AFRICA 79 Digital electronic applications are central in the marketing activities of Europe’s competitors US cities are concentrating marketing efforts on the main foreign markets Marketing Strategies for Tourism Destinations. Target market: USA 4 Tourism Australia seeks to maintain a balanced portfolio approach Marketing Strategy and Activities of Tourism Australia and South Africa Tourism in the United States Tourism Australia seeks to maintain a balanced portfolio approach, and continues to invest heavily in markets such as the United Kingdom, France, Italy, Germany, the United States and Canada134, while actively developing Asian markets. To make significant progress towards the goal of doubling overnight tourism expenditures in Australia between 2009 and 2020 to reach AUD140 billion (EUR97 billion), Tourism Australia is targeting consumers in 17 markets in 2013-14, with over three-quarters of its campaign investment being given to nine priority markets. These are grouped into Category 1 markets, estimated to be worth at least AUD5 billion (EUR3.4 billion) a year by 2020 to the Australian economy and Category 2 markets, with the potential to generate more than AUD2.5 billion (EUR1.7 billion) a year. United States are classified as a Category 1 type of market, together with Canada as the North America region. The June 2014 issue of Tourism Research Australia’s bi-annual Tourism Forecasts estimated a 8% rise in United States arrivals in 2013/14 (July to June) but a lower 5.5% increase in 2014/15 with an annual compound growth rate of 4% expected until 2022/23. Over the decade it expects the United States to contribute just under 7% to the additional 3 million international tourist arrivals forecast (i.e. from 6.6 million in 2013/14 to 9.6 million in 2022/23)135. This represents between 20,000 and 25,000 additional United States citizens visiting Australia each year over the period. All Tourism Australia’s activities in the United States are coordinated through its office in Los Angeles, which liaises with the Canadian office in Toronto in respect of North America-wide campaigns. 134Chairman’s Report to Tourism Australia’s 2012-13 Annual http://www.tourism. australia.com/documents/corporate/TACA7893_AnnualReport_2012_13.pdf 135Tourism Forecasts Autumn 2014. June 2014. Tourism Research Australia. http://www.tra.gov.au/documents/forecasts/Tourism_Forecasts_Autumn_2014_ FINAL_18062014.pdf 80 Marketing Strategies for Tourism Destinations. Target market: USA Partnerships and relationships with both traditional and non-traditional distributors are used to ensure the target customer can easily access quality Australian tourism products. Tourism Australia is dedicated to facilitating trade marketing opportunities for established businesses that will generate high yielding, sustainable market opportunities. It offers four ways for Australia’s tourism stakeholders to keep up to date and access industry resources, marketing opportunities etc. i.e. its home website www.tourism.australia.com, subscription to its weekly newsletter Essentials, following it on Twitter and LinkedIn, and attending its industry briefings. Airline partnerships help to convert consumer desire to travel to Australia into travel bookings by combining destination and tactical price point marketing. For 2013/14, Tourism Australia partnered with 19 airlines in 16 markets to promote Australia collectively spending more than AUD32 million (EUR22 million) internationally on There’s nothing like Australia campaigns. For the United States market, the important alliances are with Qantas and Virgin Australia (which codeshares with Virgin America on United States-Australia routes, and has expanded its alliance with Delta Airlines which operates direct flights from Los Angeles to Sydney); as well as with Air New Zealand which increased its weekly flights between Los Angeles and Auckland from 14 to 17 in March 2014 (and plans to increase its San Francisco service to Auckland for the December 2014 to March 2015 season), all flights having multiple connector services to Australia136. Airline partnerships help to convert consumer desire to travel to Australia into travel bookings International airlines marketing The United States travelboost distribution systempresence is large and complex, with a limitWorked during 2012–13, tourism australia partnered with 19 airlines in 16 international ed number of specialist operators featuring Australia. Though consumers havewith markets to promote australia, collectively spending more than $32 million 19 airlines turned to online travel agents to book some or all of their trips, traditional distriinternationally on There’s nothing like Australia campaigns. these partnerships bution channels remain important for customised itineraries and booking 1. ground air asia X enabled tourism australia to double its marketing investment in key markets. arrangements. Tourism Australia provides advice and guidance for Australian 2. air canada the organisation signed new memoranda of understanding (mou) with service operators on how best to carry out sales calls and conduct business with 3. air china china eastern, etihad, air china and air new Zealand. United States distributors137. 4. air New Zealand 5. cathay Pacific Figure 22: Top Six Co-operative Partnerships by Revenue Contribution TOP sIx CO-OPeRATIVe PARTneRsHIPs bY ReVenue COnTRIbuTIOn 6. china eastern 7. china Southern 8. Delta airlines 9. emirates 10. etihad 11. Garuda 12. Japan airlines 13. Malaysian airlines 14. Qantas 15. Scoot 16. Sichuan airlines 17. Silk air 18. Singapore airlines 19. Virgin australia Source: Tourism Australia’s 2012-13 Annual Report 136USA Profile 2014 http://www.tourism.australia.com/documents/Markets/ AirlinesMarket Memoranda of Understanding (*new in 2012–13) MarketProfile_USA_May14.pdf > air china* > Qantas > china southern 137 Ibid > air new Zealand* > emirates > singapore airlines 81 > china eastern* > etihad* > virgin australia Marketing Strategies for Tourism Destinations. Target market: USA The 2014-15 schedule of Tourism Australia’s marketing activities in North America, includes both consumer and trade-focussed elements. It will continue to implement marketing campaigns and events in prioritised markets using its “There’s nothing like Australia (TNLA)” creative platform and working with key partners. This calendar highlights when Tourism Australia plans to be active in the United States, including when in conjunction with Canada. In addition, TNLA advertising for Public Relations/International Media Hosting Program, Social Media and other activity will run throughout the year138. Figure 23: United States Market Consumer and Industry Events, 2014/15 Event IMEX America – business event There’s Nothing Like Australia (TNLA) Brand Campaign TNLA Airline Partnership Campaign Youth Campaign Location Las Vegas for North America North America 2014/2015 October 2014 North America G’Day USA/Australia Tourism Summit Australia Marketplace Various locations across North America North America August-November 2014, January-March 2015 September-October 2014 January 2015 North America September/October 2014, January/February 2015 March 2015 – to be confirmed Source: Working with Tourism Australia, 2014-15 Four episodes of the Oprah Winfrey Show were filmed in Australia in December 2010 The value of Tourism Australia’s marketing campaigns in the United States is best illustrated through the value generated through its facilitation and support of, and promotions conducted in conjunction with, four episodes of the Oprah Winfrey Show which were filmed in Australia in December 2010 and broadcast in January 2011. The Oprah Winfrey Show is the longest running and highest-rated talk show in the United States’ television history, averaging 14 million viewers per day, broadcast in 147 countries and with a global estimated weekly audience of more than 70 million people. The four shows in Australia involved the host and 300 members of the audience visiting every State and experiencing the full range of what Australia has to offer. It was a major project with many different organisations involved. The objective was to use the global spotlight created by Oprah’s visit to demonstrate to the world why ‘There’s nothing like Australia’ for a holiday. Tourism Australia and 16 partners invested EUR4.15 million in associated marketing activities In the United States, Tourism Australia and 16 partners invested more than AUD5.4 million (EUR4.15 million) in associated marketing activities. In total, these partnerships generated just under US$20 million (EUR14 million) of bookings. In Australia, AUD1.4 million (EUR1.07 million) was invested in the six-week Ultimate Aussie Holiday Sale following the Australian screening of Oprah’s visit139. 138 Working with Tourism Australia, 2014-15 http://www.tourism.australia.com/ documents/Markets/Report_WorkingwithTA_May14.pdf 139 The Oprah Effect, December 2011 – Tourism Australia http://www.tourism.australia. com/documents/corporate/The_Oprah_Effect.pdf 82 Marketing Strategies for Tourism Destinations. Target market: USA In its evaluation of the impact of the show and the associated campaign of Tourism Australia and its partners – The Oprah Effect, December 2011 – Tourism Australia found that140: Premier show in prime time Equivalent Advertising Value (EAV) AUD3.76 million (EUR2.9 million) per episode x 4 episodes = AUD15.04 million (EUR11.6 million). Off peak episodes Public Relations EAV AUD260,380 (EUR0.2 million) per episode x 4 episodes = over AUD1 million (over EUR0.8 million). Total media value = AUD16.08 million (EUR12.4 million) February 2011 Media Generated – provided by Corporate Communications, Tourism Australia • • global: more than 3,900 stories with a value of over AUD193 million (EUR148 million), domestic: more than 83,000 stories valued at over AUD182 million (EUR140 million). Website Impact – provided by Digital Marketing, Tourism Australia • globally, there was a 66% jump in visitors to Australia.com in January, with the United States accounting for almost 20% of this increased traffic. Media Analysis – provided by Repucom International • • • the total worldwide viewing audience of Oprah’s Ultimate Australian Adventure was 41 million for the primary shows across the United States, Australia, Canada, New Zealand and the United Kingdom, the Oprah Winfrey Show ranked as the most popular variety TV programme amongst the interviewed Oprah viewers, Australia branded content accounted for 52% of the broadcast duration of Oprah’s Ultimate Australian Adventure and generated a total media exposure value of AUD31.19 million (EUR24 million). United States Consumers – provided by Repucom International • • • • 5 in 10 Oprah viewers in the United States indicated they place a high importance on Oprah product recommendations, with 6 in 10 having made a past product purchase based on an Oprah recommendation, 7 in 10 United States consumers who were aware of Oprah’s Ultimate Australian Adventure agreed that Australia is “worth travelling to”, 6 in 10 United States consumers who were aware Oprah’s Ultimate Australian Adventure took action in exploring Australian holiday options after the show aired, with 47% stating a likelihood to book an Australian vacation in the future, United States consumers aware of Oprah’s Ultimate Australian Adventure were 50% more likely to book a vacation than those unaware of the event. 140 Ibid 83 Marketing Strategies for Tourism Destinations. Target market: USA Domestic Brand Health Monitor – provided by TNS • 49% of Australian consumers who had seen Oprah’s Ultimate Australian Adventure were more likely to take their next holiday in Australia. June 2011 United States Brand Health Monitor – provided by TNS As a result of seeing, reading or hearing about The Oprah Winfrey Show coming to Australia, • • • • • • 4 in 10 people said they’d want to find out more about a holiday in Australia, 3 in 10 - more likely to consider Australia as a vacation destination over another international destination, 3 in 10 - wanted to visit Australia for a vacation in the next 12 months, 8 in 10 - see Australia as an adventure vacation destination, 8 in 10 - see Australia as a welcoming/ friendly vacation destination, almost 7 in 10 - see Australia as a destination they would consider going for a one or two week vacation. September 2011 United States consumers – provided by TNS • • • • from the United States consumers who remember seeing, reading or hearing about Oprah’s Ultimate Australian Adventure, 7 in 10 said the show influenced their decision to choose Australia as a destination, 49% of United States consumers that visited Australia in the past 6 months said their decision to choose Australia as a destination was influenced (to some extent) by Oprah’s Ultimate Australian Adventure, 38% of United States consumers that have booked a trip to Australia in the next 12 months said their decision to choose Australia as a destination was influenced (to some extent) by Oprah’s Ultimate Australian Adventure, when asked about the likelihood of recommending Australia to a colleague or friend: 65% would be considered promoters of Australia, 22% would be considered passives in recommending Australia, 13% would be considered detractors of Australia, producing a - Net Promoter Score of 52. November 2011 United States consumers – provided by TNS To qualify for the questionnaire the respondents MUST have visited Australia in the past six months, or have booked a trip to Australia in the next 12 months AND seen, read or heard about Oprah’s Ultimate Australian Adventure. United States consumers who visited Australia in the past 6 months • • from the United States consumers who remember seeing, reading or hearing about Oprah’s Ultimate Australian Adventure, 6 in 10 agreed the show made them visit places outside of the main cities they previously had not considered, having seen Oprah’s Ultimate Australian Adventure, 6 in 10 were prepared to spend more time during their trip than they originally thought they would, while the same proportion were prepared to spend more money on their trip than they originally thought they would, 84 Marketing Strategies for Tourism Destinations. Target market: USA • • • 83% of United States consumers that visited Australia in the past six months agreed that Australia is a high quality destination with a further 68% agreeing Australia offers good value for money, 8 in 10 United States consumers that visited Australia in the past six months said their visit to Australia exceeded their expectations with 7 in 10 likely or very likely to return to Australia for a vacation, since visiting Australia, 79% are likely or very likely to recommend Australia as a vacation destination for friends and family. United States consumers who have booked a trip to Australia in the next 12 months • • from the United States consumers who remember seeing, reading or hearing about Oprah’s Ultimate Australian Adventure, 69% agreed the show made them want to explore and experience Australia outside the main cities, having seen Oprah’s Ultimate Australian Adventure, 50% now plan to spend more time travelling in Australia than they originally thought they would, while 43% now plan to spend more money in Australia than they originally thought they would, 55% now plan on visiting an Aboriginal Cultural Centre when they visit Australia, and 84% agreed the experience of visiting Australia is worth the time, distance and cost involved. 85 Marketing Strategies for Tourism Destinations. Target market: USA South Africa Tourism The volume of US travelers to South Africa in 2013 was over one-and-a-half times greater than four years earlier The volume of United States travellers to South Africa – 349,000 in 2013 – was over one-and-a-half times greater than just four years earlier. From 230,000 in 2009, successive years have seen rises of 22.6%, 1.9%, 13.6% and 6.7%. The United States was one of the countries with the most fans at the 2010 FIFA World Cup held in South Africa, with over 30 000 United States supporters travelling for the tournament alone. Rather than sinking back to pre-World Cup levels in 2011, a further growth was recorded, indicating that despite the uncertain economy the successful hosting of the tournament had a strongly positive impact in the United States market. South Africa Tourism research confirms this by the finding that its brand attributes have surged among the 26 to 40 age group being targeted by South Africa Tourism (SAT)141. Following the success of the World Cup, SAT sought to keep South Africa fresh in the minds of United States travellers by conducting consumer focus groups and trade forums in key cities around the country to better understand its target segments and their perceptions and expectations142. South Africa Tourism has its United States office in New York. It realigned its trade relations team in 2013 by appointing two assistant relations managers – based in Los Angeles and Atlanta – to service the western and south-eastern regions of market143. Get exposure on prime time television through partnerships with popular programmes South Africa Tourism has pursued a strategy of getting exposure on prime time television through partnerships with popular programmes. It hosted the reality television series “The Batchelor” in November 2010, with the two episodes filmed in South Africa and broadcast in February and March 2011 having an audience of over 20 million. This led to record website visitors and drove bookings. This was followed by SAT’s partnership with quiz show Jeopardy! to create a six-episode destination showcase focussing on the diversity of experiences in South Africa including safari, culture, adventure and lifestyle144. Online deals platform offering value-formoney packages In 2011, SAT used the information obtained through the consumer and trade consultations following the World Cup to relaunch an updated online deals platform offering pre-negotiated value-for-money packages with its trade partners on southafrica.net. It also used regional television and radio advertising with major campaigns in New York, Los Angeles, Florida, Seattle and Houston, each promoting special deals145. 141 South African Tourism Annual Report 2012/13 http://www.southafrica.net/uploads/ files/SA_Tourism_2012-13_Annual_Report.pdf 142 South African Tourism Annual Report 2011/12 http://www.tourism.gov.za/ AboutNDT/Publications/Tourism_AnnReport_2011_12.pdf 143 South African Tourism Annual Report 2012/13 op cit 144 South African Tourism Annual Report 2012/13 op cit 145 South African Tourism Annual Report 2011/12 op cit 86 Marketing Strategies for Tourism Destinations. Target market: USA Social media is extremely important for a market like South Africa with limited awareness in the marketplace. It was pivotal as a platform for most of the World Cup-related campaigns, while the global Diski dance campaign was brought to life in the United States through Facebook, YouTube, MySpace, Google, WAYN and through a partnership with Coca Cola, a partner in the tournament146. Social media is extremely important for a market like South Africa Media partnerships are a central component of SAT’s United States marketing plan, yielding combined impressions of over 38 million and public relations value of US$45 million (EUR34 million) in 2012/13. Training remains the focus of SAT’s trade engagements with almost 1,000 agents completing its online FUNDI training course, and over 200 agents participating in the “have you considered South Africa?” call centre campaign. In 2012/13, more than 3,000 leads were sent directly to trade from the deals portal on southafrica.net147. The strong recent growth in United States tourism to South Africa is evidence of the success of its efforts through partnership with television programmes and travel trade support. Not only have arrivals shown strong growth rates, but spending has also risen. The average net inbound tourist spend of United States tourists rose from ZAR36,660 (EUR3,750) in 2011 to ZAR46,291 (almost EUR4,500) in 2012. While the depreciation of the South African rand has served to attract United States visitors, the increase in spending per trip is still significant – at 4% - in US dollar terms. One of the most successful activities undertaken by South Africa Tourism in the United States market was its partnership with quiz show Jeopardy! The South Africa-themed episodes were viewed by over 36 million people, and the Sat website received nearly 20,000 visitors the day after the first episode. A customised online competition featuring content in the Jeopardy! format reached 3.7 million people and attracted over 70,000 entries. This integrated campaign focussed on Jeopardy! had a strong social media element leading to over 218,000 Facebook fans and 20,000 Twitter followers148. 146 Ibid 147 South African Tourism Annual Report 2012/13 op cit 148 Ibid 87 The recent growth in US tourism is evidence of partnership efforts Marketing Strategies for Tourism Destinations. Target market: USA 5 Competition is likely to intensify Key Factors in Destination Marketing in the United States 5.1 Market Perceptions The programme of research and analysis undertaken in the four destinations competing with Europe, as well major domestic cities, leads to the conclusion that competition is likely to intensify as a consequence of: • • • the changing demographic nature of the United States market (the two main changes being the increased proportion of Hispanic and Asian populations, and the ageing of the population as a whole), the ever-increasing competition from other destinations, attracted by the potential of the richest economy in the world where outbound travel has not reached the level of other major industrialised nations, the fast pace of technological developments, with digital technology exerting a dominant influence of people’s perceptions and behaviour. Australia ranks highest in a survey149 among United States citizens of leading destinations across the world for: • • • • • world class beauty and natural environments, friendly and open citizens/local hospitality, family friendly destination, spectacular coastal scenery, great swimming beaches. Among those United States citizens who had previously visited Australia, the rankings for other elements are higher than for those who had not been to Australia. It comes top for: • • • • • • • • • safety and security, value-for-money, interesting attractions to visit, good food, wine and local cuisine/produce, exciting events, local festivals and celebrations, clean cities, good road infrastructure with clear signposts. Only for one of the 13 factors – rich history and heritage – is Australia rated poorly. 149 Understanding the American Consumer. May 2014. Tourism Australia http://www. tourism.australia.com/documents/Statistics/Consumer-demand-project-USA.pdf 88 Marketing Strategies for Tourism Destinations. Target market: USA The difference in perception between those who have visited Australia and those who have not is striking, indicating both the opportunities for Australia to exploit and the task it has in convincing United States citizens of the merits of its tourism attractions and facilities. Brazil is highly rated by United States citizens in respect of: exciting events, local festivals and celebrations (2nd in the global survey of destinations150), world class beauty and natural environments (3rd), great swimming beaches (4th), spectacular coastal scenery (5th), and good food, wine and local cuisine/produce (9th). These results indicate the influence on United States citizens’ perceptions of broadcast imagery of Brazil’s natural features and the Rio Carnival. United States citizens’ perceptions of China are still clouded in uncertainty and lack of clarity. The only factors in which it achieves a top ten ranking in the global destination survey of Americans151 are: rich history and heritage (6th), interesting attractions to visit, and exciting events, local festivals and celebrations (both 10th). Though there is considerable suspicion among the populations of the United States and China about each other – as reported in section 2.3. – the more open attitudes of younger generations is positive for increased interaction, including through tourism, between the two countries. The difference in perception between those who have visited Australia and those who have not is striking US citizens’ perceptions of China are still clouded in uncertainty Though South Africa does not feature in the top ten for any of the 13 factors that influence holiday destination in the global destination survey, it is increasing United States citizens’ awareness and stimulating their desire to visit through the television programme partnerships it engages in, and following up on the momentum created by its hosting of the 2010 soccer World Cup. For many United States citizens, their image of South Africa is the stereotypical one of wildlife and safaris but this is broadening as their knowledge of the country increases. The image of Europe in the United States is resilient, renowned and admired for its heritage, friendly people and cultural diversity. Even amongst the younger generation of European ancestry, whose affinity with Europe is much looser than their parents’ generation and who could have been expected to be less interested in Europe – Europe is widely seen as an aspirational destination152. While older generations continue to make repeat visits, for many younger United States citizens (e.g. “Generation Y” / “Echo Boomers” – aged 18-30) Europe offers a primarily cultural and unique experience that meets their holiday requirements, either on a one-off basis (i.e. as a “must- see” destination) or from time to time (as somewhere worth re-visiting, probably to different countries each trip)153. It is clear that all destinations are seeking to broaden their appeal to the United States traveller, focussing both on their cultural heritage and natural environment, and stressing their modernity as well as their history and traditions. By challenging traditional perceptions, broadening people’s understanding of the destination, and stimulating interest in it, marketing can both provide a more extensive menu of travel opportunities to those who have been to the country before and generate demand from those who were not spurred into action from their previously-held opinions and attitudes towards the destination. All destinations have campaigns to broaden United States citizens’ perceptions combining the traditional and contemporary, thereby attracting a wider number of market segments seeking different sets of experiences. 150 Ibid 151 Ibid 152 US Outbound Travel Market Op cit 153 Ibid 89 The image of Europe in the USA is resilient Marketing Strategies for Tourism Destinations. Target market: USA 5.2 Marketing Performance and Opportunities Without significant investment in studies and surveys to more fully understand the attitudes, motivations and behaviour and characteristics of United States travellers, destinations targeting the United States market will not be able to develop fully effective communication strategies and campaigns to convert undoubted growing interest in outbound travel into actual travel to their destinations. Europe – through ETC, and even long haul destinations like Australia and South Africa are leading the way in this regard. Budgetary information for marketing campaigns in the United States is not made publicly available. It is clear, however, that destinations competing with Europe are investing substantially in the United States market. Tourism Australia classifies North America (i.e. the United States and Canada) as a category 1 market (believed to be worth over AUD5 billion – EUR 3.4 billion – in tourist spend per year by 2020. To realise this potential, it is investing a substantial part of the 75% of its marketing budget allocated to category 1 and 2 markets to activities in North America. South Africa Tourism’s budget for international tourism marketing in 2012/13 was ZAR407 million154 (EUR 39 million), of which 60% (ZAR240 million – EUR 23 million) was spread across its “core markets” i.e. France, Germany, Netherlands, the United Kingdom, Australia, China, India, Brazil and the United States. Prime opportunity to combine cultural and national heritage in easy-to-put-together itineraries The programme of research and analysis reported on in earlier chapters indicates that the prime opportunities in the United States outbound travel market in the coming decade will go through distinctive and distinct tourism offerings that combine cultural and natural heritage in easy-to-put-together itineraries that allow the tourist to gain privileged insights and immerse themselves culturally in the destination thereby gaining self-fulfilment. Many United States travellers also look for good shopping, opportunities to relax and high quality dining. Target markets will be across the generations and interests as destinations like Brazil and South Africa follow Australia’s lead in persuading United States citizens that they offer more than those features for which they are well known i.e. nature and Carnival and safari/wildlife respectively. At the same time, destinations like the other Southern American countries and Central American countries like Mexico are actively diversifying and promoting the breadth of their tourism product offer, with the advantage of appealing to the growing Hispanic population in the United States, and becoming stronger competitors to established destinations like Europe. The measurement of a destination’s performance is how well the products it develops meet market demand and how effectively it communicates to the target segments the attributes of its offering, engendering the desire to visit and converting such desire into actual travel. Success means establishing: 1. The evolution of market trends and tastes – assessing the likely future impact of changes in aspects such as demographic composition (with growing Hispanic and Asian communities a particularly important factor in the United States) and technology (with increasing proportions of the population having grown up with 24-hour access to all forms of digital technology) which are serving to change socio-cultural values and behaviour, 154 http://www.tourism.gov.za/AboutNDT/Publications/NW2928_Dept%20budget%20 to%20market%20SA%20as%20tourist%20destination%20intern_1.pdf 90 Marketing Strategies for Tourism Destinations. Target market: USA 2. The ways in which the destination tourism offer should be developed to meet these changing traveller requirements, and the media and messages by which the traveller experiences can best communicated to the market. A scattergun approach to marketing will not be effective with the increasingly knowledgeable and demanding travellers. Destination marketing has to focus on specific sets of consumers (and the specific channels that serve them), and speak directly to their specific holiday buying criteria. A scattergun approach to marketing will not be effective The segment analysis of United States outbound travellers outlined in section 1.3 identifies a set of segments showing travel preferences based on demographics, lifestyle and values, and use and reliance on the different forms of digital technology i.e. • • • • • Baby boomers – ranging from 45 to 65 years of age, comprising almost two-fifths of the United States population, Generation X – the 31 to 44 year olds making up 30% of the population who are looking for something/somewhere that is both different and sustainable, Creative class – seeking self-fulfilment from deep experiences, Echo boomers – 22% of the population, a highly demanding set of travellers, Seniors – the 65+ age group with a strong affinity to Europe. Given United States citizens’ high level of usage of digital technology, all these segments can be most effectively realised through the provision of information and booking facilities via the internet, one particular target being the self-organised individual traveller or small groups. All opportunities to obtain positive exposure on social networks can also be of great benefit to destinations, as many United States travellers look to recommendations from friends, relatives and others with experience of the destination to supplement their own research when considering trips. The reputation of a destination is important to many United States travellers in choosing where to go. Europe is a well-established destination with which the core of United States society has close affinity and on which they hold positive views. That does not mean that future United States tourist flows to Europe are assured. The opportunities for Europe to remain as a preferred destination for the United States outbound tourist are based both on the established visitor patterns and newer forms that incorporate more countries within Europe and feature different things to see and do. Europe is a well-established destination with which the core of US society has close affinity For the older United States traveller on a return visit, the European experience may comprise a number of the iconic features, but the emphasis will be on showing a different side of Europe, either through a focus on a specific aspect, like gastronomy, or including visits to less well-known destinations, each with their own history, natural features and cultures. While each European country has a rich range of resources of appeal to visitors, it is the combination of countries on themed itineraries that can provide the greatest set of experiences for the returning United States visitor, especially with information available in such a way that travellers can plan and arrange their own itineraries. The emphasis will be on showing a different side of Europe 91 Marketing Strategies for Tourism Destinations. Target market: USA Opportunity to provide cultural immersion combined with Europe’s accessibility For younger United States travellers, seeking for their destinations to be both distinct and distinctive, Europe’s opportunity rests on placing a greater emphasis on the vibrancy of its living culture and the possibilities to engage with its hospitable people (“cultural immersion”) alongside its powerful historical and cultural icons155. The way to boost growth in United States tourism to Europe lies in making Europe feel full of fun as well as historic156. This will entail embracing the opportunity to provide cultural immersion combined with an emphasis on Europe’s accessibility, living history, special personal experiences and insiders’ tips presented in a way that is appealing, exciting and demonstrates the warmth of Europeans. A Europe-wide marketing campaign outlining the opportunities for, and relative ease of realising, multi-destination trips (i.e. simple immigration process with no visa requirement, good inter-destination land and air transport services) provides the basis on which individual European country tourism marketing organisations can build on individually or in partnership with neighbouring countries. Creating greater market awareness of the extensive range, difference but complementarity of European countries’ tourist features – including Europe’s “new” destinations - can enable tailormade itineraries and packages to be put together for, and by, United States travellers. 155 ETC-UNWTO United States Outbound Travel Market to Europe 156 Ibid 92 Marketing Strategies for Tourism Destinations. Target market: USA Appendices 93 Marketing Strategies for Tourism Destinations. Target market: USA Appendix 1 European and Competing Destinations WET TTCI and Bloom Country Brand Rankings Figure 24: WEF TTCI and Bloom Country Brand Rankings of European Countries World Economic Forum Travel and Tourism Competitive Index 2013 (out of 140 countries) Country T&T Regulatory Framework Switzerland 1 Germany Austria Spain United Kingdom France T & T Business Environment & Infrastructure T & T Human, Overall Cultural Rank and Natural Resources Bloom Country Brand Rank (Out of 187 Countries/ Territories) 1 2 1 14 8 6 7 2 3 2 11 9 3 11 14 5 6 4 2 17 10 3 5 5 9 7 11 7 4 Sweden 12 23 8 9 29 Netherlands 16 15 16 13 21 Iceland 3 13 36 16 99 Finland 5 22 24 17 46 Belgium 18 26 18 18 34 Ireland 7 19 40 19 37 Portugal 20 27 19 20 23 Denmark 25 16 26 21 45 Norway 11 28 33 22 40 Luxembourg 21 20 39 23 62 Malta 15 14 49 24 53 Italy 50 29 14 26 7 Cyprus 22 21 46 29 65 Estonia 10 30 51 30 57 Czech Republic 28 37 28 31 36 Greece 39 33 30 32 16 Croatia 42 39 42 35 27 Slovenia 33 35 52 36 48 Hungary 26 49 54 39 39 Montenegro 34 50 47 40 95 Poland 49 58 32 42 32 Turkey 64 52 27 46 9 Latvia 35 40 77 48 80 Lithuania 41 48 61 49 86 Bulgaria 58 45 53 50 52 Slovak Republic 43 60 55 54 60 Romania 66 68 73 68 74 Serbia 74 81 109 89 96 Monaco - - - - - San Marino - - - - - Source: WEF TTCI Survey, and Bloom Country Brand Ranking, Tourism Edition 2013 94 Marketing Strategies for Tourism Destinations. Target market: USA Figure 25: WEF TTCI Travel and Tourism Regulatory Framework Source: WEF-TTCI, 2013, 140 destinations Figure 26: WEF TTCI Business Environment and Infrastructure Source: WEF-TTCI, 2013, 140 destinations 95 Marketing Strategies for Tourism Destinations. Target market: USA Figure 27: WEF TTCI Travel and Tourism Human, Cultural and Natural Resources Source: WEF-TTCI, 2013, 140 destinations 96 Marketing Strategies for Tourism Destinations. Target market: USA Appendix 2 Weekly City-to-City Flights from Main United States Centres Figure 28: Weekly City-to-City Flights from Main United States Centres to Primary Destinations, June 2008 and 2013 Route Direct Flights Flights Connecting Flights Aggregate Capacity Average Flight Time (minutes) Flights Average Flight Time 10 Quickest Connections (minutes) AUSTRALIA LAX (Los Angeles) – PER (Perth) -/- -/- -/- 135/229 1304/1282 MIA (Miami) - PER -/- -/- -/- -/- -/- NYC (New York) - PER -/- -/- -/- 29/57 1502/1484 LAX – SYD (Sydney) 24/35 8,882/12,775 877/897 546/581 1008/1024 MIA – SYD -/- -/- -/- 86/82 1294/1358 NYC - SYD -/- -/- -/- 319/472 1328/1304 LAX – RIO (Rio de Janeiro) -/- -/- -/- 90/349 898/859 MIA - RIO 8/21 1,800/4,648 501/515 145/325 636/616 NYC - RIO -/13 -/2,931 -/603 367/901 712/759 LAX-SAO (Sao Paulo) 3/3 783/873 690/715 542/736 864/849 MIA-SAO 32/40 8,556/12,134 488/485 352/577 672/656 NYC-SAO 38/33 9,799/9,824 595/580 1,022/1,610 717/719 LAX-BJS (Beijing) 7/14 2,149/7,196 760/760 555/723 873/899 MIA-BJS -/- -/- -/- 69/133 1071/1054 NYC-BJS 14/18 4,651/7,572 815/820 674/1,154 941/970 LAX-SHA (Shanghai) 5/21 1,610/5,901 825/818 688/744 944/940 MIA-SHA -/- -/- -/- 86/117 1134/1136 NYC-SHA 2/14 644/4,172 915/895 696/965 1040/1050 LAX – CPT (Cape Town) -/- -/- -/- 50/39 1548/1459 MIA - CPT -/- -/- -/- 8/14 1739/1720 NYC – CPT -/- -/- -/- 77/154 1229/1156 LAX – JNB (Johannesburg) -/- -/- -/- 194/245 1404/1302 MIA – JNB -/- -/- -/- 33/97 1352/1132 NYC - JNB -/7 -/2,219 -/905 288/427 1078/1140 BRAZIL CHINA SOUTH AFRICA 97 Marketing Strategies for Tourism Destinations. Target market: USA Figure 28: Weekly City-to-City Flights from Main United States Centres to Primary Destinations, June 2008 and 2013 (cont.) Route Direct Flights Flights Connecting Flights Aggregate Capacity Average Flight Time (minutes) Flights Average Flight Time 10 Quickest Connections (minutes) EUROPEAN DESTINATIONS LAX – AMS (Amsterdam) 7/12 1,981/3,756 620/632 933/1,063 750/765 MIA - AMS 7/2 1,918/544 530/580 669/747 640/672 NYC - AMS 49/42 12,499/10,363 460/459 3,170/3,652 543/546 LAX – LON (London) 70/56 22,442/18,661 622/625 2,186/2,897 732/744 MIA- LON 36/35 11,349/10,392 508/512 1,416/2,314 630/643 NYC - LON 221/217 64,136/57,123 427/426 5,617/6,192 528/545 LAX – MAD (Madrid) -/3 -/850 -/680 645/792 807/800 MIA– MAD 18/21 4,607/5,933 510/519 493/804 712/676 NYC - MAD 35/38 8,850/9,050 447/451 2,118/2,777 523/585 LAX – PAR (Paris) 25/23 7,282/7,846 636/648 1,244/1,504 766/762 MIA – PAR 14/14 4,753/4,627 522/532 1,013/1,099 669/664 NYC - PAR 102/99 28,465/24,175 451/452 4,650/4,732 574/549 LAX – ROM (Rome) 5/7 1,455/2,051 710/710 611/634 843/826 MIA - ROM 7/7 2,037/1,701 585/595 562/594 706/704 NYC - ROM 62/40 15,020/10,543 509/515 2,305/2,619 606/614 Source: Amadeus Travel Intelligence unit/Amadeus IT Group 98 Marketing Strategies for Tourism Destinations. Target market: USA Figure 29: Weekly City-to-City Flights from Main United States Centres to Primary Destinations, February 2009 and 2014 Route Direct Flights Connecting Flights Flights Aggregate Capacity Average Flight Time (minutes) Flights Average Flight Time 10 Quickest Connections (minutes) LAX (Los Angeles) – PER (Perth) -/- -/- -/- 161/214 1252/1280 MIA (Miami) - PER -/- -/- -/- -/- -/- NYC (New York) PER -/- -/- -/- 21/34 1560/1522 LAX – SYD (Sydney) 28/34 10,437/12,582 887/891 501/599 1022/1022 MIA – SYD -/- -/- -/- 80/94 1342/1389 NYC - SYD -/- -/- -/- 271/434 1317/1312 -/- -/- -/- 158/367 888/870 MIA - RIO 19/21 4,212/4,487 511/518 158/585 646/633 NYC - RIO 7/14 1,539/2,961 609/585 563/1,229 713/734 LAX-SAO (Sao Paulo) 3/10 783/2,665 690/705 484/726 840/841 MIA-SAO 34/42 8,880/12,922 495/499 393/1,051 663/621 NYC-SAO 35/37 8,239/11,345 594/585 1,011/1,831 704/725 7/14 2,149/7,196 770/770 420/617 914/896 AUSTRALIA BRAZIL LAX – RIO (Rio de Janeiro) CHINA LAX-BJS (Beijing) MIA-BJS -/- -/- -/- 46/144 1221/1063 NYC-BJS 12/18 3,886/7,579 813/826 466/939 1014/978 LAX-SHA (Shanghai) 7/20 2,254/5,360 840/847 584/763 981/990 MIA-SHA -/- -/- -/- 70/100 1161/1165 NYC-SHA 3/13 966/3,904 920/900 521/857 1076/1061 LAX – CPT (Cape Town) -/- -/- -/- 59/71 1442/1392 MIA - CPT -/- -/- -/- 29/36 1591/1585 NYC – CPT -/- -/- -/- 144/279 1226/1132 LAX – JNB (Johannesburg) -/- -/- -/- 123/187 1365/1306 MIA – JNB -/- -/- -/- 56/114 1221/1122 NYC - JNB -/7 -/1,771 -/885 314/433 1060/1162 SOUTH AFRICA 99 Marketing Strategies for Tourism Destinations. Target market: USA Figure 29: Weekly City-to-City Flights from Main United States Centres to Primary Destinations, February 2009 and 2014 (cont.) Route Direct Flights Connecting Flights Flights Aggregate Capacity Average Flight Time (minutes) Flights Average Flight Time 10 Quickest Connections (minutes) LAX – AMS (Amsterdam) 7/7 1,981/1,925 615/615 582/665 771/768 MIA - AMS 7/2 1,918/544 520/585 577/667 642/671 NYC - AMS 38/32 9,989/8,457 448/452 2,247/2,598 543/555 LAX – LON (London) 45/42 14,343/15,041 624/632 1,303/2,279 738/766 MIA- LON 38/39 11,997/11,920 504/507 1,107/2,210 634/616 NYC - LON 180/199 54,836/50,112 422/426 4,065/5,474 523/542 LAX – MAD (Madrid) -/- -/- -/- 402/522 790/820 MIA– MAD 14/17 4,151/4,294 492/509 399/661 686/672 NYC - MAD 22/25 5,004/5,529 444/446 1,543/2,017 571/591 LAX – PAR (Paris) 17/12 5,276/5,046 637/650 744/941 752/778 MIA – PAR 14/13 4,753/3,662 515/526 864/925 641/675 NYC - PAR 74/67 18,299/16,601 439/446 3,238/3,236 557/561 LAX – ROM (Rome) -/- -/- -/- 317/267 813/830 MIA - ROM 7/7 2,037/2,051 560/580 340/407 712/710 NYC - ROM 29/11 7,176/2,823 506/510 1,250/1,475 598/608 EUROPEAN DESTINATIONS Source: Amadeus Travel Intelligence unit/Amadeus IT Group 100 Marketing Strategies for Tourism Destinations. Target market: USA Appendix 3 TripAdvisor Ratings Figure 30: TripAdvisor Ratings of Tourism Services in Competing Destinations Destination Country Aspect Rating 2012 2013 Destination Country Aspect Rating 2012 2013 Accommodation 4.3 4.3 US Eatery 4.1 4.1 Austria Accommodation 4.0 4.0 Attraction 4.5 4.4 4.5 Eatery 4.3 4.3 Attraction 4.4 China Accommodation 4.1 4.1 Brazil Accommodation 4.0 4.0 Attraction 4.3 4.3 Attraction 4.5 4.5 Eatery 4.1 4.1 Eatery 4.2 4.2 Italy Accommodation 4.4 4.4 Portugal Eatery 4.3 4.3 Eatery 4.3 4.3 Accommodation 4.4 4.4 Attraction 4.7 4.7 Attraction 4.5 4.6 United Kingdom Accommodation 4.2 4.3 Belgium Accommodation 4.2 4.2 Eatery 4.2 4.2 Eatery 4.2 4.1 Attraction 4.5 4.5 Attraction 4.4 4.4 France Accommodation 4.2 4.2 Hungary Attraction 4.5 4.5 Eatery 4.2 4.2 Eatery 4.3 4.3 Attraction 4.6 4.5 Accommodation 4.4 4.5 Spain Accommodation 4.2 4.2 Iceland Attraction 4.6 4.6 Eatery 4.3 4.2 Accommodation 4.2 4.2 Attraction 4.6 4.6 Eatery 4.3 4.3 Ireland Accommodation 4.5 4.5 Croatia Accommodation 4.3 4.4 Attraction 4.5 4.6 Eatery 4.2 4.3 Eatery 4.4 4.4 Attraction 4.6 4.5 Germany Accommodation 4.2 4.2 Poland Attraction 4.6 4.6 4.3 Attraction 4.5 4.5 Accommodation 4.3 Eatery 4.2 4.2 Eatery 4.2 4.2 Attraction 4.3 4.3 Turkey Accommodation 4.4 4.4 Denmark Attraction 4.6 4.6 Accommodation 3.9 3.9 Eatery 4.3 4.3 Eatery 4.1 4.2 Greece Accommodation 4.5 4.5 Sweden Accommodation 4.1 4.2 Eatery 4.5 4.4 Attraction 4.4 4.4 Attraction 4.6 4.6 Eatery 4.2 4.2 Australia Attraction 4.5 4.6 Norway Attraction 4.4 4.4 Accommodation 4.1 4.1 Accommodation 4.0 4.0 Eatery 4.1 4.1 Eatery 4.1 4.1 4.3 The Netherlands Accommodation 4.2 4.2 Romania Accommodation 4.2 Attraction 4.5 4.5 Eatery 4.1* 4.1 Attraction 4.4 4.4 Eatery 4.3 4.3 South Africa Accommodation 4.6 4.6 Finland Accommodation 4.0 4.1 Attraction 4.6 4.6 Attraction 4.4* 4.3 Eatery 4.3 4.3 Eatery 4.2* 4.2 Czech Republic Attraction 4.6 4.6 Slovenia Accommodation 4.4 4.4 Accommodation 4.4 4.4 Attraction 4.6* 4.6 Eatery 4.2 4.2 Eatery 4.3* 4.3 Switzerland Accommodation 4.2 4.3 Malta Eatery 4.3* 4.3 Eatery 4.1 4.2 Attraction 4.4* 4.4* Attraction 4.6 4.5 Accommodation 4.1* 4.1* 101 Marketing Strategies for Tourism Destinations. Target market: USA Figure 30: TripAdvisor Ratings of Tourism Services in Competing Destinations (cont.) Destination Country Aspect Rating Estonia Attraction 4.6* 4.5 Eatery 4.4* 4.3* Accommodation 4.1* 4.2* Bulgaria Accommodation 4.1* 4.0 Attraction 4.5* 4.5* Eatery 3.9* 4.3* Cyprus Accommodation 4.1* 4.3* Eatery 4.3* 4.4* Attraction 4.2* 4.2* Slovakia Accommodation 4.4* 4.4* Attraction - 4.3* Eatery - 4.2* Latvia Eatery - 4.1* Accommodation 4.2* 4.2* Attraction 4.4* 4.5* Luxembourg Accommodation 4.0* 4.1* Eatery - 4.1* Attraction - - Monaco Eatery 4.1* 4.1* Attraction - 4.2* Accommodation - - Lithuania Accommodation 4.0* 4.3* Eatery - 4.3* Attraction 4.5* 4.5* Serbia Accommodation - 4.3* Eatery - - Attraction - - Montenegro Accommodation - 4.3* Attraction - - Eatery - - 2012 2013 San Marino Eatery - - Accommodation - - Attraction - - 102 Marketing Strategies for Tourism Destinations. Target market: USA Appendix 4 Bibliography and References The following reports, plans and other documentation have been consulted. References are given as footnotes in the body of the report and only published reports and statistical sources are repeated below. United States of America • • • • • • • • ETC Market Insights: USA 2009 ETC-UNWTO Study on the United States Outbound Travel Market to Europe (draft) 2011 Profile of United States Resident Travelers Visiting Overseas Destinations: 2012 Outbound. National Travel and Tourism Office, International Trade Administration, US Department of Commerce 2012 United States Resident Travel Abroad. National Travel and Tourism Office, International Trade Administration, US Department of Commerce Fast Facts: United States Travel and Tourism Industry, 2009 – 2013. International Trade Administration, US Department of Commerce Global Tourism Watch 2013. US Summary Report. Canadian Tourism Commission USA Market Profile. May 2014. Tourism Australia OECD Tourism Trends and Policies 2014. US section. OECD. Statistics, reports and other data relating to all markets • • • • • • • • • • • • • • • • • • • OECD Scheduled air traffic from each market into Europe, 2012, IATA Scheduled air traffic from all global origins into Europe, Jan – June 2014, IATA ETC Survey of Members’ Priorities: Markets and Products for 201415. ETC ETC Marketing Activity Report, 2013, ETC Tourism Satellite Accounts in Europe, 2010, EUROSTAT Methodologies and Working Papers ITB World Travel Trends Report, 2011/12. IPK Consulting Europe, the world’s No 1 tourist destination – a new political framework for tourism in Europe, June 2010, European Commission The Travel and Tourism Competitiveness Report, 2013, World Economic Forum UNWTO World Tourism Barometer, Volume 12, August 2014 Tourism Towards 2030/Global Overview, UNWTO, October 2011 UNWTO 25th CAP-CSA and UNWTO Conference on Sustainable Tourism Development, April 2013 2011 Census. Australian Bureau of Statistics Australian National Accounts: Tourism Satellite Account 2012-13. Australian Bureau of Statistics Tourist Satellite Account, 2011-12, Australia Bureau of Statistics, 2013 Tourism 2020, Tourism Australia’s Journey 2010 to 2013, Tourism Australia, October 2013 Portfolio Budget Statements 2013-14 Budget Related Paper 1.16 Resources, Energy and Tourism Portfolio. Tourism Australia Budget Tourism Australia’s 2012-13 Annual Report CIA World Factbook Megatrends: Ten new directions transforming our lives, 1982. Naisbitt, J. 103