Connecting you with the Asia Pacific Market November 29, 2018

What is CITAP Canadian Inbound Tourism – Asia Pacific Not for profit organization established in 1997 by Receptive Tours Operators. Vision: to increase the business from the Asia Pacific market into Canada Members: over 350 members from various sectors in the tourism industry from across Canada and the United States.

The world’s fastest-growing outbound travel markets. The emerging markets: India, Malaysia, Thailand, Indonesia, Philippines and Vietnam. The developed economies: China, Japan, South Korea, Taiwan, Hong Kong, Singapore, Australia and New Zealand.

Why Asia Pacific- Japanese Market Interest in Western Canada is on the rise with BC and Alberta seeing significant increases in 2017. Interest in visiting Banff is up significantly. Among long-haul destinations, Canada remains 5th on unaided consideration, behind the US, Australia, Italy, and France. The immediate potential market remains relatively unchanged from the previous year: 2.55 million travelers are definitely or very likely to visit Canada in the next 2 years Source: Destination Canada- 2017 Japan Public Summary Report

Why Asia Pacific- Japanese Market Challenges: Global competition in price and hotel availability. (Vancouver, Canadian Rockies and Niagara Falls. Japanese Group Package Tours are down overall. The need for qualified Japanese speaking tour guides in Quebec. (no need for junior guides)

Why Asia Pacific- Japanese Market Opportunities: Eastern Canada Travellers 50+ FIT markets growing rapidly Customized Group Sales growing Educational tours remain strong Private Schools in Japan Student exchange programs (May, October and November) Japanese Travellers are looking for experiential programs (cultural, nature walking, culinary) Corporate Incentive Groups (financial, cosmetic, and health related industries) Additional AC flight to Montreal. Social Media: Twitter, Facebook, Instagram.

Why Asia Pacific- Chinese Market Asia Pacific remains a leading growth market for world travel with a 5% rise in outbound trips so far this year despite the slowdown in the Chinese economy.* The top destinations of interest to Chinese visitors are all located within the two most popular provinces – Ontario and BC; Ontario edges BC as the most popular province among prospective visitors, with Niagara Falls having the greatest appeal by far. ** Chinese travellers spent an estimated $920 million in Canada, making China Canada’s second-largest market in terms of tourism expenditures.*** Sources: ITB World Travel Trends Report 2015/2016 ** Destination Canada- 2017 China Public Summary Report ** Destination Canada – Where we market Canada: China

Why Asia Pacific- Chinese Market Challenges: China economy slowing causing the middle class to look at saving money. Chinese Travellers finding pricing higher than expected in key tourism areas. Booking patterns for attractions and accommodations is relatively compared to other markets. (six weeks prior to travel). Lack of professional Chinese Tour Guides available. Limited availability of hotel rooms. Air B&B Visa Required

Why Asia Pacific- Chinese Market Opportunities: Aged Travellers (50 plus) Abundant available air capacities into Canada. Good pricing on airfares due to lift capacities. Chinese travellers are looking for new areas in Canada to explore. Off season travel is popular with Fall Colours and Aurora programs. Shopping- Brand name items/made in Canada. Student/Incentive Groups Leisure Groups. Business/VFR/Holiday Social Media: WeChat, WhatsApp, Skype, Facebook, Line, Instagram

Why Asia Pacific- Chinese Market Singapore Malaysia Indonesia Thailand Philippines Singapore Age of Traveler: 25 – 60 Holiday Seasonal travel Nature scenery FIT Leisure group tour Price sensitive Visa Exempt, eTA request Wholesale, Travel Agent/ on line bookings Series bookings Age of Traveller: 40-60 Seasonal Travel Shopping – Brand Name Leisure Group Visa Required Travel Agent Age of Traveller 30-60 Nature Scenery Small Group Leisure group Visa required Travel agent Series Booking Age of Traveller 40-60 Business/Leisure Group Tour Age of traveller 25-55 Holiday/VFR Nature Scenery, Shopping FIT/Group

INTERNATIONAL TOUR OPERATOR → HOW TO TAP INTO THIS MARKET? Distribution channels to reach end consumer SUPPLIERS → RECEPTIVE → OVERSEAS WHOLESALER/ INTERNATIONAL TOUR OPERATOR → TRAVEL AGENT → CONSUMERS Hotels Attractions Transportations CITAP members In-market wholesaler In market retail travel agencies Visitors from China and other Asia Pacific markets

HOW TO TAP INTO THIS MARKET? Pros and cons Sell directly to end consumer: bigger profit margin but expensive and high risk Work with overseas travel agent, tour operator or wholesaler: limited knowledge on the destination and the suppliers’ products; not necessarily specialize in Canadian tourism suppliers’ products Work with receptive tour operator (RTO): how to work with them as a supplier of our products. Expert: specializing in Canadian tourism experiences and products Partner: based in Canada and represents Canadian tourism suppliers’ products to tour operators in international markets and looking for a long term partnership. They source, package, market, distribute and deliver the services of Canadian tourism products to provide a world class Canadian experience to international visitors Cost effective: suppliers can have their products featured in thousands of brochures in countries all over the world at virtually no cost. This can eliminate the need for expensive sales missions to foreign countries and they reduce your financial risk

HOW TO TAP INTO THIS MARKET? Different kind of RTOs Global RTO – Jonview Regional RTOs: only specialize in a certain region of Canada or certain segment of business like ‘education’ or may only focus on a certain market (region) only Korea Integrated RTOs like HIS Canada: parent company has Retail and Wholesale

HOW YOUR BUSINESS CAN ENGAGE AND BE SUCCESSFUL As a supplier… Your products/experiences are export ready Safe and professional operation Have the ability to accept payment from overseas clients Have the commitment to stay in international markets for a minimum of 3 yrs. Have language capability to service an international clients Have the willingness to adapt to the needs of overseas clients

HOW CAN CITAP HELP YOU? What is CITAP Canadian Inbound Tour Operator for Asia Pacific CITAP, non-profit organization established in 1997, is a united force with members from various market segments of the Hospitality Tourism Industry. Growing from 10 pioneers to over 350 members in just a short period of time does mean something to us at CITAP – a genuine interest with sincere and devoted support in further developing Canada as the preferred destination for Asia Pacific travellers.

Who are CITAP members? Over 350 members from various sectors in the tourism industry from across Canada and the United States. Associations, Receptive Tour Operators Retail Travel Agencies DMOs, PMOs, Canadian and US Suppliers (accommodations, attractions, transportation etc.), Individual/Independent, Media Invite CITAP members who are attending to stand up…thanking them for their commitment to work together in further developing Canada as the preferred destination for Asia Pacific travellers.

Benefits as Members There are numerous advantages you gain by joining CITAP: Networking events Marketplace Asia Pacific market updates Member profile directory Seminars and workshops Advocacy Quarterly e-newsletter and e-updates

CITAP MISSION STATEMENT Get connected. Stay connected  If you want Asian Pacific customers there are numerous advantages you gain by joining CITAP and working with RTOs. I hope the presentation stimulates thought on how your business can engage and be successful with the Chinese market and other Asia Pacific markets.