International Travel Trends to the U'S'

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International Travel Trends to the U.S.
Presented to SHOP AMERICA TOURISM SUMMIT
Presented by Helen Marano Office of Travel and
Tourism Industries International Trade
Administration U.S. Department of
Commerce January 2009
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Department of Commerce Agencies Involved

• Department of Commerce (DOC)
• International Trade Administration (ITA)
• Manufacturing and Services (MAS)
• Services (S)
• Office of Travel and Tourism Industries
  (OTTI)

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What We Do at OTTI
Office ofTravel TourismIndustries
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U.S. Department Of CommerceInternational Trade
Administration Tourism Resources
OFFICE OF TRAVEL TOURISM INDUSTRIES
Office of Domestic Operations 105 U.S. Offices
Foreign Commercial Service 151 Offices in 83
Countries
http//www.buyusa.gov/eme/tra.html
http//trade.gov/cs/
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Impact of Travel on the U.S. Economy

• Total Tourism Sales 1.32 trillion Direct
  tourism sales 747 billion Indirect tourism
  sales 573 billion
• Top sectors
• Transportation 507 billion
• Recreation, entertainment, shopping 384 billion
• Food service drinking places 232 billion
• Traveler accommodations 197 billion
• Total Tourism Employment 8.54 million
• Direct employment 5.87 million Indirect
  tourism employment 2.68 million
• Tourism Percentage of GDP 2.6

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Travel and Tourism Employment

• Food Services and Drinking Places
• 2.4 million employees (29)
• Traveler Accommodations
• 1.7 million employees (20)
• Shopping (Retail)
• 905 thousand employees (11)
• Air Transportation Services
• 877 thousand employees (11)

Travel and tourism industries support 8 million
American jobs!
More than 70 of all travel and tourism
employment is accounted for by four sectors
Source U.S. Department of Commerce, Office of
Travel and Tourism Industries, Bureau of Economic
Analysis..
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International Travel Tourism to the U.S.(2007)

• Largest services sector export 122 billion in
  2007.
• Third-largest merchandise/services export
  category.
• Generated a trade surplus of 17.6 billion.
• Supported 900,000 jobs.
• Generated 14 billion in federal, state local
  taxes.
• International travelers spend 4-7 times more than
  domestic travelers on a trip
• Length of the trip is 2-4 times greater than
  domestic travelers.
• International travelers have higher activity
  participation rates than domestic travelers.
• International travelers were more inclined to
  stay at hotels/motels rent cars than a domestic
  traveler.

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World Tourism Arrivals Receipts(2002-2007)
Traveler Receipts (billions)
Number of Travelers (millions)
Source U.N. World Tourism Organization r
revised preliminary estimate
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Travel Trends to the U.S.
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U.S. Visitors Spending(1996-2007)
Visitor spending (receipts) closely mirrors
visitor volume. Spending was a record 122.4
billion in 2007, while visitor volume was a
record 56.0 million.
millions of visitors
billions in spending
Spending
Visitors
Sources Department of Commerce, Office of
Tourism Industries Department of Commerce,
Bureau of Economic Analysis Statistics Canada
Banco de Mexico.
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Top Origin Markets forInternational Travelers to
the U.S.
Origin of Visitor 2007 07 / 06 08/07 Oct.
YTD (000s) ( change) ( change)
International Total 55,986 10 7 1 Canada 17,76
1 11 10 2 Mexico 14,333 8 -6 Overseas
23,892 10 8 3 United Kingdom 4,498 8 5 4
Japan 3,531 -4 -7 5 Germany 1,524 10 19 6 Fr
ance 998 26 28 7 Korea 806 6 -3 8 Australia
670 11 5 9 Brazil 639 22 21 10 Italy 634 19
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International travelers include all countries
generating visitors to the U.S. Overseas
includes all countries except Canada and Mexico.
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Record Outlook ( )International
Travelers to the U.S.
Origin of Visitor 2007 07 / 06 08/07 Oct.
YTD (000s) ( change) ( change)
International Total 55,986 10 7 1 Canada 17,76
1 11 10 2 Mexico 14,333 8 -6 Overseas
23,892 10 8 3 United Kingdom 4,498 8 5 4
Japan 3,531 -4 -7 5 Germany 1,524 10 19 6 Fr
ance 998 26 28 7 Korea 806 6 -3 8 Australia
670 11 5 9 Brazil 639 22 21 10 Italy 634 19
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International travelers include all countries
generating visitors to the U.S. Overseas
includes all countries except Canada and Mexico.
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Top Origin Markets forInternational Travelers to
the U.S.
Origin of Visitor 2007 07 / 06 08/07
Oct.YTD (000s) ( change) ( change)
11 India 567 39 8 12 Spain 516 22 33 13 Net
herlands 507 13 24 14 Ireland 491 18 12 15 V
enezuela 459 24 12 16 China
(PRC) 397 24 26 17 Colombia 390 12 9 18 Swed
en 337 18 20 19 Israel 313 10 8 20 Taiwan 31
1 4 -4
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Trends in Total Overseas Visitors who Shop
(1996-2007)
Estimate in Millions
Overseas includes all countries except Canada
Mexico
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Activity Participation while in the U.S.(2007)
Information Overseas U.K. Germany France Japan S
ources () () () () ()
Shopping 87 87 82 84 92 Dining in
Restaurants 83 93 87 88 86 Sightseeing
in Cities 41 39 38 41 45 Visit
Historical Places 35 36 41 48 14
Amusement/Theme Parks 25 35 18 15 14
Visit Small Towns 25 22 26 30 27 Art
Gallery/Museum 21 19 26 39 7 Cultural
Heritage Sites 20 21 35 30 11 Water
Sports/Sunbathing 19 26 19 13 38
Touring Countryside 18 17 32 15 15
Visit National Parks 17 18 23 23 10
Guided Tours 16 18 15 11 23
Concert/Play/Musical 15 16 16 17 8
Note Multiple choice responses allowed for
activity participation.
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Who are those Shoppers?
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Top Overseas Shopping Markets 2007

• Shopping Shopping /Visitor Gifts/
• Visitors Incidence Souvenirs
• All Overseas 20,762 87 359
• 1 U.K. 4,111 87 241
• 2 Japan 3,654 92 320
• 3 Mexico (Air Travelers Only) 1,482 79 421
• 4 German 1,308 82 279
• 5 France 830 84 241
• 6 South Korea 664 76 412
• 7 Australia 644 92 450
• 8 Brazil 540 85 666
• 9 Italy 498 79 285
• Netherlands 457 87 174
• China (PRC) 351 88 585

Overseas includes all countries except Canada
Mexico
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Canadian and Mexican Shoppers

• 79 of Mexican air travelers shop during their
  trip (air travelers 12 of all travelers)
• 72 of Canadian travelers shop during their trip
  (increased steadily from 65 in 2000).

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Top States Visited by Overseas Travelers to the
U.S. for Shoppers
Overseas Travelers for Shopping Travelers -
State Visited
All Overseas Travelers To the U.S. - State
Visited New York California Florida Hawaii Nevad
a DC Metro Massachusetts Illinois Texas New
Jersey
New York California Florida Nevada Massachusett
s DC Metro area Illinois Texas New
Jersey Pennsylvania
Note trip information is collected separately
for destinations visited while in the U.S. and
activities. Thus, visitors to a state may not
have visited a shopping site in that state.klp
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Selected Key Traveler CharacteristicsOverseas
Visitors, Shoppers, and Cultural Heritage
Travelers2007
Overseas Cultural Visitors Shoppers Heritage U
se of Packages 16 18 18 First International
Trip to USA 22 23 27 Main Purpose of Trip -
Vacation 46 50 56 Main Purpose of Trip -
VFR 22 21 22 Nights in the USA
(mean/median) 16/8 16/8 19/10 Visiting only
One State 70 69 65 Visiting only One
Destination 56 54 49
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Activity ParticipationOverseas, Shopping, and
Cultural Heritage
Overseas Shopping Cultural Heritage Shopping 87
100 90 Dining in Restaurants 83 87 86 Sights
eeing in Cities 41 44 52 Visit Historical
Places 35 37 56 Amusement/Theme
Parks 25 28 41 Visit Small Towns 25 26 32 A
rt Gallery/Museum 21 22 33 Water
Sports/Sunbathing 19 21 21 Cultural Heritage
Sites 20 20 31 Touring Countryside 18 18 24
Visit National Parks 17 18 28 Guided
Tours 16 18 21 Concert/Play/Musical 15 17 24
Nightclub / Dancing 12 13 15 Casinos /
Gaming 9 10 12
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Decisions, Decisions, Decisions.Influences
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Currency Exchange Rate Trendsentering 2009 (from
foreign travelers perspective)

• Exchange rate and in-country GDP change are key
  factors in forecast travel econometric model
• Currency trends similar across key markets
• Loonie 5-year strengthening. Reached par in Nov
  2007. Since then declined 20, mostly in last
  four months.
• Pound 6-year strengthening. Exceeded 2 in Nov
  2007. Since then declined 27, mostly in last
  four months.
• Euro 6-year strengthening. Reached record 1.59
  in July 2008. Since then declined 20, mostly
  in last four months.
• Peso 13-year decline. 0.13 in 1996, 0.07 in
  2008.
• Yen Above and below 0.0088 average for a
  decade. 6-month rise to 0.0110 in Dec 2008.

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Policy Challenges

• Western Hemisphere Travel Initiative (WHTI)
• Visa Issues
• Electronic System for Travel Authorizations
• Entry/Exit Procedures
• World Competition
• World Perception

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Western Hemisphere Travel Initiative

• What is WHTI?
• Congressional mandate of the Intelligence Reform
  and Terrorism Prevention Act(Dec 2004).
• WHTI requires all travelers to and from the US,
  Canada, Mexico, Central America, South America,
  Caribbean and Br. Bermuda to present a passport
  or other accepted document that establishes the
  bearers identity and nationality to
  enter/re-enter the U.S.
• Phases
• Phase 1 Persons entering or re-entering the U.S.
  by AIR must have a valid passport or approved
  documents as of January 23, 2007.
• Phase 2 Oral declarations of citizenship no
  longer accepted.
• Phase 3 Persons entering or re-entering the U.S.
  by ANY MODE must have a single DHS-approved
  document proving identity and citizenship by
  June 1, 2009.

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www.KnowYourBorder.gov www.GetYouHome.gov

12M campaign
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Travel Policy UpdateElectronic System for Travel
Authorization(ESTA)

• On June 3, 2008 - The Department of Homeland
  Security announced the Interim Final Rule for
  ESTA - a new online system that is part of the
  Visa Waiver Program (VWP).
• Nationals or citizens of Visa Waiver Program
  (VWP) countries will require an approved ESTA
  prior to boarding a carrier to travel by air or
  sea to the United States. 
• Travelers under the VWP will log on to the ESTA
  web-based system and complete an application
  online providing the biographical and eligibility
  information currently required on the paper I-94W
  form.
• ESTA implemented as a mandatory program effective
  January 12, 2009.ESTA Web site
  https//esta.cbp.dhs.gov.

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Travel Policy UpdateElectronic System for Travel
Authorization(ESTA)

• An approved ESTA travel authorization is
• valid for up to two years or until the travelers
  passport expires, whichever comes first
• valid for multiple entries into the U.S. and
• not a guarantee of admissibility to the United
  States at a port of entry.  ESTA approval only
  authorizes a traveler to board a carrier for
  travel to the U.S. under the VWP.  In all cases,
  CBP officers make admissibility determinations at
  our ports of entry.

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Visa Waiver Program Expansion

• 27 Current countries
• Andorra, Australia, Austria, Belgium, Brunei,
  Denmark, Finland, France, Germany, Iceland,
  Ireland, Italy, Japan, Liechtenstein, Luxembourg,
  Monaco, Netherlands, New Zealand, Norway,
  Portugal, San Marino, Singapore, Slovenia, Spain,
  Sweden, Switzerland, United Kingdom,
• Accounted for 64 of 2007 overseas visitors.
• 7 New countries
• Czech Republic, Estonia, Latvia, Lithuania,
  Hungary, the Republic of Korea and the Slovak
  Republic
• Accounted for 4 of 2007 overseas visitors.
• Beginning mid-November, requires biometric
  passport and ESTA registration.

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DiscoverAmerica.comThe Official Travel and
Tourism Website of the United States
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DiscoverAmerica.com gtgt homepage
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DiscoverAmerica.com gtgtshopping
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2009 Focus

• Overall Objective Provide low cost channel for
  US Travel Association member organizations in
  order to drive business demand in a challenging
  economic environment
• International Focus
• 700,000 investment in marketing combined with
  ongoing PR and other viral marketing efforts.
• Domestic Focus
• Development of a domestic site to stimulate
  increased travel within US
• Launch by May 1
• Free special offers and display ads available to
  provide more value to the consumer and drive more
  traffic to US Travel Association members.
• Promote site through aggressive PR effort
  building awareness one stop shop for an all U.S
  special offers database.

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The World Has Turned on a Dime
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Top Origin Markets forInternational Travelers to
the U.S.
Origin of Visitor 2007 08/07 Oct.
YTD October (000s) ( change) ( change)
International Total 55,986 7 -2 1 Canada 17,76
1 10 -5 2 Mexico 14,333 -6 -6 Overseas
23,892 8 1 3 United Kingdom 4,498 5 -5 4
Japan 3,531 -7 -12 5 Germany 1,524 19 16 6 F
rance 998 28 24 7 Korea 806 -3 -15 8 Austral
ia 670 5 -6 9 Brazil 639 21 20 10 Italy 634
27 12
International travelers include all countries
generating visitors to the U.S. Overseas
includes all countries except Canada and Mexico.
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Forecasts for International Traveland Trends to
Watch
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UNWTO Panel of Tourism Experts
Publicperformance past 4 months vs. next 4 months
index
MuchBetter Better Equal Worse MuchWorse
2003
2004
2005
2006
2007
2008
2009
2010
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UNWTO Panel of Tourism Experts
Privateperformance past 4 months vs. next 4
months
index
MuchBetter Better Equal Worse MuchWorse
2003
2004
2005
2006
2007
2008
2009
2010
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International Visitors to the U.S. and
Projections(2000-2012)
Arrivals in Millions
Sources U.S. Department of Commerce, ITA, Office
of Travel Tourism Industries Secretaria de
Turismo (Mexico) Statistics Canada Tourism
Economics
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Short-Term ForecastInbound Travel to the U.S.
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Long-Term ForecastInbound Travel to the U.S.
Origin Country 2007 Change 2012 Change
Actual 07/06 Forecast 12/07 (000s) ()
(000s) ()
Total Visitation 55,986 10 64,944 16 Canada 17,7
61 11 20,958 18 Mexico 14,333 8 16,626 16 Ove
rseas 23,892 10 27,237 14 Asia /
Oceania 7,211 4 7,932 10 Europe 10,406 13 11,96
7 15 Latin America and Carib. 4,377 15 5,252 20
Middle East and Africa 898 11 1,041 16

• Overseas includes all countries except Canada and
  Mexico.
• Sources OTTI Statistics Canada Banco de
  Mexico Tourism Economics

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OUTLOOK FOR 2009 AND BEYOND
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MY OFFICE HAS SO MUCH HOPE..
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SO MANY FACTORS..