1. Canadian Travel to the U.S.
Presented to:
Discover America Committee--
CANADA
Presented by:
MARK BROWN
Office of Travel and Tourism Industries
International Trade Administration
U.S. Department of Commerce
October 2010
Good afternoon. It is my pleasure to be here with you once agaon representing the U.S. Department of Commerce….Office of Travel and Tourism Industries.
Thank you DiscoverAmerica Committee for the invitation to share the Canada story, and thank you again Air Canada and Hyatt Regency for making my trip possible. 1

2. Agenda for Today Fun Facts about Canada Big to Small Looking ahead
Global travel trends
Canada outbound volume and trends
Canada to the U.S. volume and trends
Canada’s importance to the U.S. travel industry
Visitation to U.S. states
Canadian visitor profile update and trends
Looking ahead
Primer on the Travel Promotion Act
Q & A
What a difference a year makes. I think that’s what I said last year, too!
Here are the topics I would like to cover in my time with you this afternoon.
My goal is to give you the tools to help you sell to Canadians, and to sell Canada…internally within your organizations. 2

3. Did You Know? Canada Myth-Buster Style
China, China, China Canadian visitation to 21 states exceeds total Chinese visitation to the U.S. 19 million Canadians in hand is worth more than 1.3B Chinese in the bush.
U.K., U.K., U.K. More Canadian air travelers to the U.S. than visitors from the U.K.
Canada is #1 visitors ranking #1 visitor spending ranking (attained in 2007) #1 travel balance of trade surplus ranking (attained in 2008)
Best “Geo Equity” All U.S. states benefit from Canadian travelers. Best equity of any country.
Let’s start with some factoids you might find interesting. 3

4. OTTI’s Canada Travel Program
Dedicated OTTI Research Analyst.
Monthly U.S. Inbound / Outbound visitor volume by travel segments (with ongoing summary).
Annual Report (comprehensive visitor profile).
Dedicated section on TINET website. Substantial addition of historical tables and analyses.
Nurture relationships with Statistics Canada, CTC, CB-C, CS offices, DiscoverAmerica Committee-Canada.
Travel & Tourism Advisory Board consideration for marketing and policy programs.
WHTI tracking on monthly basis.
Monitor demographics / economy changes.
Your head cheerleader as the Travel Promotion Act of 2009 developments unfold.
Here’s a list of elements in OTTI’s Canadian program. This is one of a dozen formal program areas within OTTI.
*The dedicated analyst is me.
*I’d be happy to send periodic updates of the monthly data. You probably don’t need a monthly update.
*The annual reports are available on the TINET website.
*The TINET website is being revised now, partly to conform to ITA standards, but also to greatly embellish content, while improving navigation.
Relationships:
StatsCan:Statistics Canada has a substantial relationship existing with BEA and has permanent staff in BEA’s offices. My role is to ensure OTTI is getting the visitor information we need and to know what is available. (Sylvain, Lotfi, Daniel)
CTC: OTTI and CTC regularly shares information with one another (Roger, Neil).
Conference Board-Canada: I plan to revisit the Canadian tourism Research Institutes information, including the Travel Intentions Survey.
Commercial Service: To date I’ve shared information with the Vancouver office (Cheryl) and Toronto office (Ruth).
SeeAmerica Committee-Canada: My presence here today continues this relationship. I look forward to hearing from you later in the Q&A or at the gathering following our meeting here on how else I can serve this committee..
TTAB: Part of my responsibilities is to ensure useful data on the Canadian visitor origin market is available in consideration of Travel and Tourism Advisory Board and other marketing programs.
Impacts of any sort deriving from the recently enacted TPA won’t be known for awhile, including which countries will be targetted for marketing, but part of my job is to be your head cheerleader to ensure Canada is included in the pool of countries for consideration. 4

5. Global Travel Trends
Let’s take a brief look at global travel trends to provide perspective on the U.S. performance.

6. World Tourism Arrivals & Receipts (1980-2010)
2009
880m
$852b
2010 YTD
+7%
NOTES TO SPEAKER:
None
SLIDE NOTES:
Lets begin with the numbers looking at the global travel arrivals is 880 million and receipts is $852 billion. Thus, global spending per visitor is roughly $1,000 per trip.
There’s no real shift here….world tourism arrivals and receipts has grown at a consistent rate since 1950 of about 7%...with only a few slow-down periods, such as the early 80s and the early 00s. The graph here shows annual changes from 1950-up through 2010.
The UNWTO forecast for arrivals is a plus 3% or 4% in 2010, and growth in the 5-6% range through YTD growth through half the year is up 7%, but should settle down a bit lower due to a higher bar to beat in the Fall.
We use the terms “arrivals” and receipts to reflect the occurrence of some travelers visiting multiple countries on the same trip. So for example, arrivals is the sum of visits to countries at the destination level, as opposed to the number of TRAVELERS at the origin country level.
Source: U.N. World Tourism Organization
[GRAPHIC SOURCE: I:\Tourism Industries\Outreach\Associations\WTO--UN World Tourism Organization\001 UNWTO U.S. Market Share Indicators (of Global Travel by country)\1950-CURRENT World Arrivals, $$$, US share.xls 6

7. Top Ten Country Rankings of Global Visitors and Receipts (2009)
The United States leads the world in global travel and tourism exports (spending receipts) and ranks 2rd in global visitation.
Destination 2009 World Destination World
Rank Country Receipts* Share Country Visitors Share
($bil) (%) (mil) (%)
All Countries $852 All Countries 880
1 United States $ % France %
2 Spain $ % United States %
3 France $ % Spain %
4 Italy $ % China %
5 China $ % Italy %
6 Germany $ % United Kingdom %
7 United Kingdom $ % Turkey %
8 Australia $ % Germany %
9 Turkey $ % Malaysia %
10 Austria $ % Mexico %
The U.S. dominates in share of world receipts, and is ranked second for international traveler volume.
UNWTO excludes passenger fares in the receipt total. If the U.S. airline industry were a county, it would be the 8th largest in receipts from foreign travelers (foreign residents using U.S. carriers).
U.S. Air Carriers
Source: U.N. World Tourism Organization.
* Latest data available and excludes air passenger fares ($26.4 billion for U.S. alone in 2009). World shares based on unrounded data.

8. Spending Update from
VISA: 20% RISE IN U.S. INBOUND TOURISM SPENDING. A new report from Visa Inc. shows the tourism industry has begun to rebound during the first six months of From Jan. 1 to June 30 of this year, spending by international visitors to the U.S. on their Visa‐branded payment cards was up 20% over the comparable period of At the same time, Americans are spending at higher levels when traveling internationally: Spending by U.S. travelers abroad on Visa cards was up 9.3% in the first quarter of 2010 compared to the same period in Total first‐half visitor spending in the U.S. for Canada was $4.6 billion, up 22%; the U.K. was $1.2 billion, up 16%; Japan $387 million, up 3%; Mexico $819 million, up 24%; and Brazil $835 million, up 73%. ( 8/31)
However, DOC/Bureau of Economic Analysis reports international spending +8% through June and +10% through August.
In the past few years, VISA has increasingly been releasing and marketing data and products based on their transactional data. Here’s a late Summer release of spending trends among international visitors to the USA using VISA-affiliated spending cards. OTTI does not endorse this information, but we share it as another tool in our toolbox to gauge industry performance.
Spending by Canadian visitors to the US is up 22% for the first half of 2010 according to VISA.
However, BEA puts total international spending up only 8% for the same half of year, and up a bit higher additing July and August.
Part of the reason of including this slide is to remind you of the potential of credit card transactional data. This data source could become a useful addition toour research toolbox.

9. Traveler Volume from Canada to the U.S. (stays of 1 or more nights)
Here’s nearly 4 decades of overnight traveler volume from Canada to the U.S. The 2010 performance through August is up 13%.
At this time last year, we had forecast Canada visitor volume to break the long-standing 1991 record of 19.1 million in This Spring, we revised upward the forecast to expect a record in 2010, which now looks very likely needs to finish a bit over +6% to break the record, but through August is up nearly 12%!
2010 YTD INCREASE is 13% through July, but should settle somewhat lower by year-end.
Source: Statistics Canada. 9

10. Trends in Travel from/to Canada (stays of 1 or more nights)
The TOs and FROMs our two countries were mirror opposites until The divergence stopped in 2009 when both trends declined, but is resuming in 2010.
Source: Statistics Canada. 10

11. Canada Outbound / U.S. Share annual growth rates 1999-2010YTD--1+ nights
Canadians have been traveling outside Canada! U.S. performance trailed non-U.S. performance in 9 of the past 11 years. Not so in 2010!
The blue series is year-to-year growth in travel to the U.S. The orange series reflects year-to-year changes in Canada outbound to places other than the U.S. Both reflect trips of 1+ nights.
Canadians are traveling outside the country, but the shorter blue bars over much of the past eight years means the U.S. was losing market share of total outbound--a drop from 77% in 1999 to 70% in That trrend is reversed in 2010 so far. 11

12. Canadian Outbound Traveler Volume (percent change same month from previous year)
Outbound to the U.S. is often inconsistent with outbound to the rest of the world in magnitude…and recently in direction of change. Outbound to the U.S. was 70% of all outbound in 2008—a proportion that has declined for a decade.
06 /05 07 / / / / 09
Here’s the same data on a monthly basis. Trends were in the same positive direction for both outbound to US and all other leading up to the Fall of Then wham-o!...opposite directions beginning in the Fall of 2008 for about 8 months. Over the past 12 months, outbound to the US recovered more quickly than outbound to the rest of the world.

13. Canada to U.S. 12-month moving average
The 12 consecuting months of decline in 2008/2009 has been matched by 8 consecutive increases in 2009/ The growth still has momentum…
A 12-month moving average trend line is a convenient way of showing an ongoing trend, without the month-to-month big swings. It’s based on the actual visitor volume, so big changes in big months (such as July) impact the trend more than changes in small months (February). The mirror image of the rebound since the trough of August 2009 compared to the decline leading up to that month is…interesting! 13

14. Where are Canadians Traveling?
After U.S., all other countries are 1.0 million or fewer.
Top countries: Mexico, U.K., France, Cuba, Dominican Republic, Germany, Italy, Netherlands, China, and Spain.
High growth rates for Mexico, Cuba, DR, China, Spain, HK.
Trends for Canada are similar to those for outbound Americans—growth is to warm sunny Caribbean destinations and Southeast Asia. 14

15. Top Origin Markets for International Travelers to the U.S.
Origin of Visitor 2009p 09 / 08 10/09 AUG. YTD
(000s) (% change) (% change)
International Total * 54, % 12%
1 Canada 17,973 -5% 12%
2 Mexico 13,164 -4% 12%
Overseas ** 23,756 -6% 11%
3 United Kingdom 3, % -2%
4 Japan 2, % 20%
5 Germany 1,687 -5% 2%
6 France 1,204 -3% 8%
7 Brazil % 36%
8 Italy % 12%
9 South Korea % 48%
10 Australia 724 5% 27%
Here’s the performance by the top origin markets in 2009 & 2010 YTD.
2009 Highlights:
* Record for 30 of 183 countries tracked. These 30 account for only 2 million visitors. Moreover, Australia and China are more than half of this total.
* 1 of top 10, and 5 of top 20 posted an increase
* Record for 1 of top 10; 3 of top 20.
2010 Highlights:
waiting for revised Feb, Mar, and April data from DHS/CIC.
Note:
Total international and Mexico YTD reflects only the portion of Mexico captured by the I-94 program, which is all air travel and border traffic beyond the official 25 mile/40km border zone. This portion is typically about a third of total Mexico annually.
* International travelers include all countries generating visitors to the U.S.
** Overseas includes all countries except Canada and Mexico.
Record year for travel to U.S. 15

16. Top Origin Markets for International Travelers to the U.S.
Origin of Visitor 2009p 09 / 08 10/09 AUG. YTD
(000s) (% change) (% change)
11 Spain % 9%
India % 18%
Netherlands % 3%
China (PRC) 525 6% 57%
Venezuela 507 0% -5%
Colombia 425 1% 19%
Ireland % -14%
18 Argentina % 21%
Switzerland 356 4% 9%
Sweden % 12%
Here’s the second half of the top 20 inbound markets.
Record year for travel to U.S. 16

17. Top Ten Travel Export Markets (2009 & record receipts/year)
Total Travel Record Year
Receipts Travel Record
Origin Country 2009 Receipts Set
($bil) ($bil)
Canada $16.13 $
Japan $13.05 $
United Kingdom $11.43 $
Mexico $8.05 $
Germany $5.57 $
Brazil $4.57 $
France $4.12 $
China $3.60 $
India $3.57 $
Australia $3.42 $
U.S. TOTAL $ $
We saw earlier how the countries ranked in terms of arrivals to the U.S. Here’s a look at their economic importance to the U.S. These top-10 countries account for 61% of total spending.
Canada attained the top spot in 2007.
Japan was in the top spot prior to 2007, was pushed down to 3rd by UK growth..only to move up to 2nd due to UK’s steep decline in 2009 spending.
Brazil moved up to 6th place due to continued growth coupled with declines for countries that had been ranked higher.
China moved up from 11th to 7th in 2009 because of flatness in spending coupled with declines for other countries.
Conversely, Italy was pushed to 11th place because of a large drop in 2009 spending.
The right-hand column shows that 2008 was the record year for most markets. The exceptions are Japan, whose record remains 1995, and Brazil, the only top 10 country with a 2009 record.
All spending data are shown in current or nominal dollars, that is, NOT adjusted for inflation.

18. International Travel to The U.S. in Perspective
4% of travelers
17% of travel spending (and…employment, payroll, taxes)
21% of all lodging, 13% of all sightseeing services, 10% of all gaming, 2%-4% of all restaurants, recreation/entertainment, sports.
Orlando
6% of travelers
17% of spending
Large % of lodging
NYC
18% of travelers
41% of spending
52% of lodging
The importance of international has grown over the past five years relative to the domestic sector travel performance. This trend may temporarily reverse in 2009 and 2010, but will likely shift back if the U.S. domestic industry is mature from a life-stage cycle perspective. Is it? It is for some segments (national parks visitation; travel agents; Northeast origin markets ), but not all. 18

19. Importance of the Canadian Travel Market to the U.S.
Canada accounts for 32.7% of U.S. international visitors and 13.4% of visitor spending.
…and...
Spending had been growing at high rates for several years to produce consecutive records….but tumbled 12% in 2009…but in 2010…
For many destinations, Canadian visitation occurs in non-peak seasons and helps to distribute visitors more uniformly throughout the year.
All states benefit from Canadian travelers! Geographic equity is best among origin countries (27 states of 2+% of total visitors).
Rankings:
#1 visitors (17.97 M)
#1 spending ($16.13 B)
#1 travel balance of trade surplus ($9.91 B)
These and similar points reflecting the importance of the Canadian visitor market will be developed more thoroughly moving forward.
Having numerous border states and snowbirds driving down through the country to their southern border state destinations certainly contribute to the geographic dispersion of Canadian travelers. 19

20. Key Travel Characteristics of Canadian Travelers (2009)
Main Trip Purpose
60% Leisure (49% holiday, vacation; 5% 2nd home; 6% events)
19% Visit Friends or Relatives (VFR)
11% Business (4% meetings; 5% convention; 2% other work)
10% Other (3% pers., 1% transit; 1% study; 3% shop; 2% other)
Origin Province
Ontario 39% of population but 45% of travelers. BC also higher share of visitors than population (13% vs. 17%).
State Destinations
A few destinations dominate the numbers. Florida is 15% of visitors, but 33% of visitor-nights due to snowbirds.
Every U.S. region and state was down for 2009 in visitors, visitor-nights, and spending. 20

21. Top U.S. State Destinations Visitors, Visitor-Nights, and Spending (2009)
U.S. State Visitors Nights Spending
(millions) (millions) ($millions)
TOTAL U.S. (NET) $11.031
1 New York $921
2 Florida $3,140
3 Washington $475
4 Michigan $295
5 Nevada $1.120
6 California $1,143
  7 Maine $265
8 Pennsylvania $148
9 Vermont $161
10 Massachusetts $264
…state destinations:
Numbers in purple reflect increases of 8+%. Red numbers reflect declines. Obvious patterns are not apparent.
I just mentioned that all states benefit from Canadian travelers, but a few states dominate the numbers…
Most of the “down” states were states with small visitor numbers, which makes the volume estimates subject to normal sampling variation.
The nearly 19 million visitors (NET) generated just under 147 million visits when accounting for multiple state visits for some trips. Florida dominates in visitor-nights and spending.
Keep in mind that spending numbers here are those reported by Statistics Canada. Elsewhere in the presentation, spending estimates comparing countries is from Department of Commerce, Bureau of Economic Analysis. The two statistical organizations reconcile their collection and methodology differences in reporting the estimates released by BEA. 21

22. Key Travel Characteristics of Canadian Travelers (continued) (2009)
Transportation (mode of entry into U.S.)
60% auto (34% plane; 3% bus; 3% other).
71% of business travelers flew.
Accommodations
56% hotel/motel (16% friends/relatives; 10% camp/trailer/cabin).
Hotel/motel differs by purpose (88% bus.; 57% leisure; 29% vfr).
Stay Length
37% of Canadian state-visits are day trips.
Among overnight trips:
10% are 1-night trips.
6% are 3 weeks or longer. 3+ weeks accounts for 40% of visitor-nights.
7.93 nights average stay length, 9.55 leisure…but this average is misleading…
Under accommodations:
Note : 29% of persons whose trip purpose was to visit friends and relatives stayed in hotels/motels. 22

23. Canadian Nights in the U. S
Canadian Nights in the U.S. (among overnight LEISURE visitors--60% of total state visits--2009)
This graph doesn’t change much from year-to-year (average changes some), and the importance of its message doesn’t change, either. Average represented by the “mean” average can be misleading depending on the use. Thus, for example, if a package was developed for 9-10 nights in the U.S.—the average—a small proportion of Canadian travelers would be interested in the product.
The mean, median and mode all inched up in 2009. 23

24. Key Travel Characteristics of Canadian Travelers -- continued (2009)
Spending (source: Statistics Canada; all records)
$11.0 billion (excludes fares to travel to the U.S.)
$1,320 per party
$614 per visitor
$77 per visitor per night
Of the 76% of spending reported with detail:
34% accommodations
22% food & beverage
18% other (souvenirs, shopping, etc)
13% transportation (in U.S.)
12% entertainment
This year I’ve kept the spending data specific to estimates from Statistics Canada, mostly because data are available and comparable across states and across other details such as spending category. Statistics Canada EXcludes air passenger fare from this total. This number will differ from travel receipts reported elsewhere in this presentation computed by the U.S. Bureau of Economic Analysis because of some refinements to numbers between the two statistical agencies and treatment of day trips.
The $83 spending per visitor per day is lower than the average for all overseas, but is comparable to U.S. domestic average. For comparison, BEA’s Canada spending/ person of $900 is much less than the total international BEA average of $2,400. This is NOT a bad thing, but undoubtedly reflects the many short visits of 1-3 nights, an event that seldom happens in travel to the United States from overseas.
A better comparison of Canadian spending to other countries is spending per visitor per night. 24

25. Canadian Activity Participation Rates while in the U.S. (2009)
Activity Total Business VFR Pleasure Other
Sum of all 18 activities 348% 233% 341% 392% 225%
Go Shopping 73% 53% 69% 78% 73%
Go Sightseeing 45% 33% 35% 54% 25%
Visit Friends Or Relatives 37% 16% 95% 24% 31%
Participate Sports/Out. Activities 32% 12% 24% 40% 17%
Go To A Bar Or Night Club 23% 35% 15% 24% 17%
Visit A Historic Site 22% 17% 18% 25% 11%
Visit A Nat. Or State Nature Park 17% 8% 12% 22% 8%
Visit A Museum Or Art Gallery 16% 14% 14% 18% 8%
Attend Cultural Events 13% 9% 10% 15% 7%
Go To A Casino 13% 7% 5% 17% 7%
Canadians are active travelers, even business travelers, and those visiting friends or relatives or for other miscellaneous reasons. The “sum across activities” gives a convenient way of looking at and comparing across segments. It is simply the sum of activity percentages in any one column. Of note is the relatively high level of activity participation even among business travelers and “other” trip purpose travelers.
Always keep in mind the difference between activity and trip purpose. For example:
Shopping for perspective: 3% Main trip purpose; 73% as an activity; 18% of reported spending total.
2009 activity participation rates are the same as for 2007 for nearly every, and up by a percentage point for a few activities. The “sum of activities” is also similar. 25

26. Activity Participation Rates (2009) (continued)
Activity Total Business VFR Pleasure Other
Visit A Theme Park 12% 5% 6% 16% 2%
Visit A Zoo, Aquar. / Bot. Garden 11% 6% 9% 13% 4%
Golfing 9% 3% 6% 12% 2%
Attend Sports Events 9% 6% 9% 10% 5%
Attend Festivals Or Fairs 8% 6% 7% 9% 3%
Water sports (Canoe, etc.) 6% 2% 5% 7% 3%
Downhill Skiing Or Snow Boarding 2% 0% 1% 3% 1%
Fishing 2% 0% 2% 3% 1%
No Activity Stated 10% 25% 6% 7% 13% 26

27. Looking Ahead
So far, we’ve focused on past trends and current profiles. Now let’s take a peek into what we see occurring in the next few years. But instead of using the CRYSTAL ball…

28. Outlook for Canada Travel to the United States
…we have begun using the more accurate Mattel Magic 8-Ball. The 2010 outlook is good (with data through more than half the year already in the bag…”…

29. Outlook for Canada Travel to the United States
…but looks good for 2011 and beyond as well.

30. Traveler Volume from Canada to the U.S. (stays of 1 or more nights)
Here’s nearly 4 decades of overnight traveler volume from Canada to the U.S. The 2010 performance through August is up 13%.
At this time last year, we had forecast Canada visitor volume to break the long-standing 1991 record of 19.1 million in This Spring, we revised upward the forecast to expect a record in 2010, which now looks very likely needs to finish a bit over +6% to break the record, but through August is up 12%!
The OTTI forecast for the next five years calls for a bit lower growth in the next few years, and then higher growth based on the assumption of sizable positive impact of the Travel Promotion Act-related marketing efforts in Canada.
2010 YTD INCREASE is 13% through July, but should settle somewhat lower by year-end.
Source: Statistics Canada. 30

31. Factors for 2010 and Beyond Economy
Unemployment about 8.1% and improving-ish. A year ago 8.7%.
GDP up 3.7% in September. Down 2.6 in 2009.
Household finances strong-ish Household wealth strong-ish.
Near-retirees on track regarding retirement planning.
Inflation about 1.7% in September (annual rate)a year ago -1%
Mortgage / credit card debt???
The graph shows monthly annualized unemployment rate for the past decade or so. It inched up in the most recent month, but had been declining since I was hear a year ago.
I’m not familiar with credit card debt issues in the Canadian market. But in the U.S….
75% or so U.S. households have 1+ credit cards…of them…
61% are only paying the minimum payment monthly.
Average balance is $10,000
I’ve not found comparable data for Canada households.
Unemployment Rate 31

32. Factors for 2010 and Beyond Exchange Rate
Mark makes presentation to DA-Canada 2008
Here’s where the exchange rate was when I was here two years ago… 32

33. Factors for 2010 and Beyond Exchange Rate
Mark makes presentation to DA-Canada 2009
Bad things happened after I left…but then recovered… 33

34. Factors for 2010 and Beyond Exchange Rate
…until I left a year ago. Still, the exchange rate is a very positive factor in looking for growth over the next few years.
The exchange goes up and down. The 10-year average is meaningless, because it was reached on just a couple of days during the 10 years. 34

35. Factors for 2010 and Beyond + Economy + Currency exchange rate +- WHTI
+ New U.K. Air Passenger Duty (APD)
+- Travel Promotion Act
— U.S. destination marketing levels
— Low and slowing growth of U.S. economy (but much of the impact is from a growth in U.S. imports (Canada a beneficiary). 35

36. Travel Promotion Act of 2009
Dates:
Passed on February 25, 2010, as Section 9 of H.R. 1299, United States Capitol Police Administrative Technical Corrections Act of 2009
Signed into law by President Obama on March 4, 2010.
Subsequently amended as Section 5 of H.R. 5623, Homebuyer Assistance and Improvement Act of 2010.
Establishes the Corporation for Travel Promotion
a nonprofit entity, to communicate U.S. entry policies and otherwise promote leisure, business and scholarly travel to the United States.
Authorizes the Secretary of Commerce, in consultation with the Secretaries of State and Homeland Security, to appoint the Corporation’s board of directors, review and approve the Corporation’s annual objectives, and transmit the Corporation’s report to Congress.
Funds the Corporation from the collection of a fee assessed on travelers from visa waiver countries ($14.00) in the completion of a form under the DHS requirement for the Electronic System of Travel Authorization (ESTA).
Here’s a quick primer on the Travel Promotion Act of 2009, which of course was signed into law in March 2010.

37. Travel Promotion Act of 2009
Establishes an Office of Travel Promotion
within the Commerce Department to serve as a liaison to the Corporation and be responsible for a broad range of additional activities.
Authorizes a major expansion of the research programs
currently administered by the International Trade Administration’s Office of Travel and Tourism Industries.
The intent of the bill
To increase international travel to the United States by improving the image of the United States around the world, thereby creating jobs and stimulating economic growth.
An independent analysis by Oxford Economics found that the legislation could help create more than $4 billion in consumer spending annually and generate 40,000 new U.S. jobs. According to the Congressional Budget Office, the program will reduce the federal budget deficit by $425 million in the next 10 years.
It is very important to keep in mind that the “OFFICE” created within the Department of Commerce has “PROMOTION” in the name, but this office will not be conducting travel promotion. Rather, only serving as a liaison between the USG and the non-profit Corporation for Travel Promotion, who will do the marketing heavy lifting.

38. Travel Promotion Act of 2009 Corporation for Travel Promotion Funding Details
In year one, the Corporation is to be funded from a drawdown of up to $10 million.
In year two, the drawdown is up to $100 million with a 50% match by industry (80% of the match can be in-kind, 20% must be in cash).
In years three, four and five, the drawdown is up to $100 million with 100% industry match.
In year six and beyond, funding of the Corporation would be by industry assessment only as the Act sunsets in 2015.
Here’s an overview of the funding mechanism and process. Please note that the USG component of the promotion funding sunsets in 2015.

39. Corporation for Travel Promotion Board of Directors
Caroline Beteta President and CEO, California Travel & Tourism Commission, CA
Stephen Cloobeck Chairman and CEO, Diamond Resorts International
Las Vegas, Nev.
Daniel Halpern, President and CEO, Jackmont Hospitality, Inc.
Atlanta, Georgia
David Lim Chief Marketing Officer, Amtrak, Washington, D.C.
George Fertitta CEO, NYC & Company,
New York, N.Y
Tom Klein President, Sabre Holdings, Southlake, Texas
Here’s the board of directors of the Corporation for Travel Promotion. They met for the first time two weeks ago.
Mark Schwab Senior Vice President-United Airlines, Chicago, Illinois
Diane Shober Tourism Director, State of Wyoming, Cheyenne, Wyo.
Al Weiss President, Worldwide Operations, Walt Disney Parks and Resorts
Orlando, Florida
Roy Yamaguchi Owner and Founder, Roy’s Restaurant, California
Lynda S. Zengerle Partner, Steptoe & Johnson LLP, Washington, D.C.

40. Summary of Key Findings
Global Travel: Strong +7% rebound YTD led by Asia and South America.
Canada Travel: Strong 13% rebound YTD (Aug) to USA following 5% decline in Non-U.S.2010 YTD also up, but only +3%. New record THIS YEAR is assured strongly likely highly possible!
Canada Rankings: #1 visitors, #1 spending, #1 travel trade balance.
Profile: travel attributes mostly stable. Watch DEcreases in travel party spending, but increases in casino, souvenir/shopping spending, average stay length.
Forecast: Favorable outlook>>economy, currency exchange rate, TPA!!
WHTI: Phase III June 2009 full implementation now a year behind us.
Travel Promotion Act : Potential for significant level of marketing effort in a year or two and subsequent increase in visitor volume/spending. MVB is head cheerleader for promoting the USA to the Canada market. 40

41. Summary of Why Canada!
Top dog: #1 in visitors and visitor spending and travel trade balance.
Geo-equity: Best of any visitor origin country.
Canada marketing (was) on rise: DiscoverAmerica.com, state-level efforts.
Shoulder season: helps fulfill many destinations’ expansion goals.
Open wallets: $$$ per-visitor per-night grew fast until Comparisons to other countries is not valid due to short-term stays bringing down average.
Economics: looking much better, especially compared to Europe.
International!!!!: Canada is a big part of the general story of international (growing) importance perhaps an anomaly to long-term trend. Domestic industry may be mature from an industry life-stage perspective??? 41

42. Thank You! MARK BROWN Office of Travel and Tourism Industries
Questions?
MARK BROWN
Office of Travel and Tourism Industries
International Trade Administration
U.S. Department of Commerce
Phone: 42