2019 New York State Tourism Conference April 25, 2019 Credit: - PowerPoint PPT Presentation

2019 New York State Tourism Conference April 25, 2019

Credit: NASA/GSFC & AVHRR

Travel Powers the Economy Source: NTTO unless otherwise noted and Enhances the Image of the USA • #1 Services Export • 76.9 million international visitors spent $251.4 billion • $77.4 billion trade surplus • 32% of U.S. service exports; 11% of all U.S. exports • 2.8% of GDP • $1.62 trillion in economic output • $141.5 billion in tax revenue • 7.8 Million Jobs Supported by Travel • 5.5 million direct; 2.3 million indirect ▪ Market Share • Top 10 employer in 49 states and DC • 1.2 million jobs supported by international travelers ▪ The USA welcomes 5.8% share of the world’s travelers and leads the • International Visitation Enhances the Image of the USA* world in global tourism receipts, • 74% more likely to have a favorable view of the USA after they visit commanding 15.8% of world • 61% more likely to support U.S. policies after they visit traveler spending *Source: Pew Research Center

Global Long Haul Trips and US Market Share 450 16% 400 14% 350 12% 300 10% 250 Global Total 8% 200 6% 150 US Market Share 4% 100 2% 50 0 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: NTTO; Oxford Economics Note: Visitation in millions and US Overseas Market Share

The Travel Promotion Act signed into law March 2010

Brand USA’s Role in Travel and Tourism in the USA U.S .S. Travel & PROMOTE ADVOCATE Tou ourism In Industry ry ADVISE (Policy & Competitiveness)

Statement of Purpose: Mission and Vision Brand USA is the Destination Marketing Organization for the United States • Created by the Travel Promotion Act in 2010 • The nation’s first public -private partnership to promote travel to the USA • More than 800 partners since 2011 Our Mission Our Vision Increase incremental We aspire to be to be the best in international visitation, spend, class national destination and market share marketing organization — earning for the United States the USA the largest share of the to fuel the U.S. economy global travel market and and enhance the image significantly contributing to of the USA with job creation, GDP, export growth worldwide travelers. and tax revenues.

Foundational Elements Promote the entirety of the USA with innovative marketing that supports all 50 states, the District of Columbia and five territories to, through, and beyond the gateways Inspire, inform welcome, and thank travelers while accurately communicating vital and compelling information about visa & entry policies Add and Create Value by pioneering cooperative marketing platforms and programs that grow and leverage the USA brand in ways our partners would be challenged or unable to do on their own Maximize and optimize ROI of Brand USA resources by deploying the right messages, through the right channels, in the right markets, at the right times, and at the right investment levels Build and maintain trusted relationships with stakeholders worldwide through inclusive, proactive, and transparent outreach with a commitment to compliance and integrity through words, actions, and results

Brand USA Funding Model and the Electronic System for Travel Authorization (ESTA) Traveler applies for a travel authorization (ESTA) on the Department of Homeland Security website at esta.cbp.dhs.gov/esta The ESTA is valid for multiple trips to The $14 Fee is paid to the Department of Homeland Security. the USA for two years. $14 $4 $10 Covers administrative costs for the Held in the Travel Promotion Fund in the U.S. Department of Homeland Security U.S. Treasury For ever $1 Brand USA raises in cash and in-kind contributions, Brand USA is eligible to receive $1 from the Travel Promotion Fund (up to a maximum of $100 million annually) $100 Million $100 Million from the Travel Promotion Fund from Contributors

ROI Data Source: Oxford Economics

Brand USA Strategy

Domestic Political Environment Global Economy China Trade/Political Tension Brexit

Key Factors Driving Inbound Visitation

GDP Growth % Change (Constant Prices) 16% 14% 12% 10% 8% 6% 4% 2% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 -2% -4% -6% United States Advanced economies Emerging market and developing economies World India China Source: IMF

Mar-19 USD/JPY Feb-19 Jan-19 Dec-18 Nov-18 Oct-18 USD/KRW Currency Exchange Rates (2014 Index) Sep-18 Aug-18 Jul-18 Jun-18 May-18 USD/CNY Apr-18 Mar-18 Feb-18 Jan-18 Dec-17 USD/INR Nov-17 Oct-17 Sep-17 Aug-17 Jul-17 Jun-17 USD/EUR May-17 Apr-17 Mar-17 Feb-17 Jan-17 USD/CAD Dec-16 Nov-16 Oct-16 Sep-16 Aug-16 USD/AUD Jul-16 Jun-16 May-16 Apr-16 Mar-16 Feb-16 USD/GBP Jan-16 Dec-15 Nov-15 Oct-15 Sep-15 USD/MXN Aug-15 Jul-15 Jun-15 May-15 Apr-15 Mar-15 USD/BRL Feb-15 Source: Oanda Jan-15 80% 70% 60% 50% 40% 30% 20% 10% 0% -10%

Behavior vs. Sentiment Commercial Opportunity Messaging/Channel Strategy

Consumer Sentiment

Likely to Visit the US in the Next Two Years Jun-16 100% Jul-16 Aug-16 90% Sep-16 Oct-16 80% Nov-16 Dec-16 70% Jan-17 Feb-17 60% Mar-17 Wk1 Mar-17 Wk3 50% Apr-17 Wk1 Apr-17 Wk3 40% May-17 Wk4 Jul-17 Wk3 30% Oct-17 Dec-17 20% Mar-18 Jun-18 10% Aug-18 Sep-18 0% Dec-18 Australia Brazil Canada China Germany France India Japan South Korea Mexico U.K. Mar-19 Source: Engine, custom study

Political Climate as Reason for Not Visiting USA (Among those not planning to visit) 60% Aug-16 Oct-16 Dec-16 Wk1 50% Dec-16 Wk3 Feb-17 Mar-17 Wk1 40% Mar-17 Wk3 Apr-17 Wk1 Apr-17 Wk3 30% May-17 Wk4 Jul-17 Wk3 Oct-17 20% Dec-17 Mar-18 Jun-18 10% Aug-18 Sep-18 0% Dec-18 Australia Brazil Canada China Germany France India Japan South Korea Mexico U.K. Mar-19 Source: Engine, custom study

Ranking of Reasons for Not Visiting USA (Among Non-Visitors) (March 2019) Aus Australia Br Brazil Can Canada Ch China Germ ermany France Fr Ind ndia Jap Japan Korea Mexico I want to visit other countries first 1 1 1 2 3 3 3 1 2 1 It is a big trip that I want to plan well in 2 2 7 1 4 2 1 3 1 6 advance I want to save some money for the trip 3 3 5 3 2 1 2 2 3 2 The currency exchange rate is unfavorable 4 5 2 8 9 9 5 8 7 7 I am influenced by political commentary in the 5 7 3 4 1 4 9 6 6 4 USA I have been there before so I don't feel a desire 6 6 4 7 5 5 6 4 5 5 to go back so quickly I do not know much about it; I'd like to get more familiar with individual cities/areas 7 9 9 5 7 6 8 5 4 8 before I plan a trip Other 8 10 8 10 6 8 10 9 9 10 I want to go for a specific event 9 8 6 9 8 7 7 7 8 9 I believe it would be difficult to get a visa 4 6 4 3 Source: Engine, custom study

Canada Arrivals/Exchange/Political Sensitivity 18-Dec 18-Nov Oct-18 Sep-18 Aug-18 Jul-18 Jun-18 May-18 Apr-18 Mar-18 Feb-18 Jan-18 Dec-17 Nov-17 Oct-17 Sep-17 Aug-17 Jul-17 Jun-17 May-17 Apr-17 Mar-17 Feb-17 Jan-17 Dec-16 Nov-16 Oct-16 Sep-16 Aug-16 Jul-16 Jun-16 Political Sensitivity May-16 Apr-16 Mar-16 Feb-16 Jan-16 Dec-15 Nov-15 CAD/USD Exchange Oct-15 Sep-15 Aug-15 Source: NTTO/Oanda/ORC Jul-15 Jun-15 May-15 Apr-15 Mar-15 Arrivals Feb-15 Jan-15 50% 40% 30% 20% 10% 0% -10% -20% -30%

How We Market the USA Brand USA’s core strategies to increase international visitation, spend, and market share for the United States include our consumer-focused USA Campaigns, trade outreach, and cooperative marketing programs that, in total, promote the United States in its entirety while adding and creating value for our partners. Global Consumer Travel Trade Cooperative Campaigns Outreach Marketing Programs

The USA’s Unique Value Proposition Diversity Experiences The diversity of the USA’s The USA offers nearly limitless destinations and people is authentic travel experiences . exciting and unique. Proximity The proximity of the USA’s diverse and authentic travel experiences (to, through, and beyond the gateways) provides travelers more value in a single visit than any other destination in the world.

Global Positioning Give a voice to real travel experiences within the USA Create urgency and provoke Lend authenticity to our Incorporate and build on our “travel dreaming” by communications, as well as foundational value proposition highlighting first person creating a sense that there (proximity), competitive edge storytelling & perspectives are many United States (possibility) and tone (welcome). Our content strategy will focus on curating individual voices that each express a particular point of view and place of interest.

Integrated Marketing USA Campaigns We weave engaging narratives and create powerful, authentic storytelling across owned, paid, and earned media in order to entertain, engage, and inspire travelers to visit the USA. Storytelling Device Entertainment Social Consumer Approach Strategy Platforms and Digital and Trade PR