Betsy Wall, Executive Director
FOCUS ON CHINA Friday, December 14th Hall of Flags, State House Boston, MA
PROGRAM OF EVENTS 10 – 11am 11– 11:45am
Overview of China Visitation Data & Visitor Profiles Overview of the Chinese Leisure Market & the Tour Industry in China 11.45 – 12.30pm Lunch break 12.30– 1.30pm The Chinese International Student in Massachusetts – A Primer 1:30– 2:30pm Panel of Experts - Understanding the Marketplace 2: 30 – 3pm Q&A
US-China Group Leisure Travel Memorandum of Understanding (MOU) signed December 11, 2007 US Travel Destinations are allowed to market their brands in China Increase in number of Chinese tourists to the US Chinese travelers will become more familiar with different US destinations
China inbound tourism to the US is the
fastest growing tourism source to the USA and will continue to be so for the foreseeable future.
US Government granted Chinese visitors ‘Approved
Destination Status’ (ADS) visas Stated Goal of the U.S. Dept of State
“Increase non immigrant visa processing capacity in China and Brazil by 40 per cent in the coming year’ Recognition of Obama Administration to both protect
US borders but nurture international visitation
What Are The Facts?
International Traveler Spending from United Nations World Tourism Organization
OUTBOUND!
Top Origin Markets for International Travelers to the U.S. Origin of Visitor International Total * 1 2
Canada Mexico Overseas ** 3 United Kingdom 4 Japan 5 Germany 6 Brazil 7 France 8 South Korea 9 China (PRC) 10 Australia * **
2011
2011/2010
(000s)
(% change)
12/11 May YTD (% change)
62,711
5%
6%
21,337 13,491 27,883 3,835 3,250 1,824 1,508 1,504 1,145 1,089 1,039
7% 0% 6% -0% -4% 6% 26% 12% 3% 36% 15%
4% 5% 9% -2% 14% 12% 19% 5% 12% 42% 6%
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.
Top Travel Export Markets ($billions of 2011 receipts)
Origin Country
Travel Receipts 2011r
Passenger Fare Receipts
Total Travel Receipts 2011
Canada Japan United Kingdom Mexico Brazil
$19.4 $10.1 $9.0 $6.4 $5.9
$4.6 $4.6 $3.0 $2.8 $2.6
$24.0 $14.8 $12.0 $9.2 $8.5
China Germany Australia France India South Korea
$5.7 $4.9 $4.3 $3.8 $3.1 $3.7
$2.1 $1.4 $0.7 $1.2 $1.3 $0.1
$7.7 $6.3 $5.0 $5.0 $4.4 $3.8
U.S. TOTAL
$116.1
$36.6
$152.7 r = revised
Chinese Visitors & Spending (1997 – 2011, current $’s) In 2011 visitor volume was a record 1.09 million, while spending was a record $7.74 billion. visitors (000s)
spending ($billions)
1200
$12
1000
$10 Visitors (lhs)
800
$8
600
$6
400
$4 Spending (rhs)
200
$2
0
$0 97
98
99
00
01
02
03
04
05
06
07
08
09
10
Sources: Department of Commerce, Office of Tourism Industries; Department of Commerce, Bureau of Economic Analysis
11
Chinese Traveler Superlatives Since 2007 (1st new record among current string of records) Including 2007, five consecutive visitor volume records—one of
the longest record strings; Highest visitor volume growth rate—by far—among top 40 origin markets (174% vs. 136% for Brazil); 3rd-highest visitor growth volume among all countries (700k vs Canada’s 3.6m and Brazil’s 900k); Highest visitor spending growth rate (187%) vs Brazil (170%); 3rd-highest growth spending volume among all countries ($5b vs Canada’s $7.6b and Brazil’s $5.3b);
Chinese Visitors’ Top U.S. Ports of Entry 5
#5 Blaine, WA 74k (6.8%)
#2 San Francisco (SFO) 166k (15.2%) 2 1 #1 Los Angeles (LAX) 201k (18.5%)
#3 Chicago (ORD) 129k (11.8%) 3
#4 New York (JFK) 119k (10.9%) #6 Newark (EWR) 58k (5.4%)
4 6
Top Cities Cities Visited New York City Los Angeles DC Metro Area San Francisco Las Vegas Boston Chicago Buffalo Seattle Atlanta Philadelphia Detroit San Jose
2005 31 % 31 % 15 % 26 % 22 % 7% 16 % 1% 4% 2% 2% 1% 6%
2006 27 % 39 % 13 % 24 % 23 % 8% 11 % 2% 6% 2% 3% 3% 6%
2007 31 % 37 % 17 % 24 % 18 % 8% 13 % 2% 3% 2% 5% 1% 4%
2008 35 % 31 % 18 % 22 % 17 % 8% 11 % 5% 2% 4% 6% 1% 4%
2009 29 % 30 % 17 % 22 % 17 % 9% 11 % 1% 5% 3% 3% 0% 2%
2010 28 % 34 % 14 % 22 % 16 % 9% 10 % 1% 4% 2% 4% 2% 1%
2011 39 % 31 % 20 % 18 % 16 % 12 % 8% 6% 5% 4% 4% 4% 4%
Key Activities Activities 1 Shopping 2 Dining in Restaurants 3 Sightseeing in Cities 4 Visit Historical Places 5 Amusement/Theme Parks 6 Visit National Parks 7 Cultural Heritage Sites 8 Art Gallery/Museum 9 Casinos/Gambling 10 Visit Small Towns 11 Guided Tours 12 Touring Countryside 13 Cruises
2005 89 % 83 % 49 % 42 % 31 % 28 % 21 % 24 % 24 % 24 % 8% 23 % 8%
2006 90 % 82 % 53 % 45 % 25 % 25 % 24 % 18 % 29 % 23 % 12 % 16 % 8%
2007 88 % 80 % 51 % 47 % 28 % 29 % 21 % 19 % 22 % 22 % 13 % 18 % 8%
2008 90 % 84 % 45 % 43 % 28 % 23 % 25 % 22 % 21 % 19 % 14 % 15 % 14 %
2009 92 % 83 % 57 % 43 % 27 % 27 % 29 % 24 % 18 % 22 % 15 % 13 % 10 %
2010 94 % 83 % 48 % 45 % 33 % 24 % 23 % 19 % 19 % 23 % 17 % 14 % 9%
2011 87 % 78 % 54 % 53 % 36 % 29 % 28 % 25 % 24 % 23 % 20 % 16 % 15 %
Activities, continued… Activities 14 Water Sports/Sunbathing 15 Concert/Play/Musical 16 Nightclubs/Dancing 17 Environ./Eco. Excursions 18 Camping/Hiking 19 Visit Am. Indian Comm. 20 Attend Sports Event 21 Ethnic Heritage Sites 22 Golfing/Tennis 23 Ranch Vacations 24 Snow Skiing 25 Hunting/Fishing
2005 11 % 10 % 6% 6% 2% 2% 8% 4% 7% 1% 1% 3%
2006 8% 11 % 12 % 5% 3% 2% 5% 4% 5% 2% 2% 2%
2007 5% 10 % 8% 4% 5% 5% 6% 5% 6% 3% 1% 2%
2008 14 % 9% 4% 4% 4% 4% 4% 3% 6% 4% 2% 1%
2009 12 % 12 % 11 % 8% 7% 4% 3% 9% 6% 3% 2% 3%
2010 9% 8% 6% 4% 4% 3% 7% 5% 4% 4% 2% 4%
2011 12 % 10 % 8% 8% 6% 6% 6% 5% 4% 4% 3% 3%
International Visitors to the U.S. and Projections (2000-2016) Arrivals in Millions 100
80 65.4
60
56.0 51.2
49.2
46.9 43.6
57.9
59.8
68.3
71.1
73.8
76.6
62.3
55.0
51.0
46.1
41.2
40
20
0 2000
Sources:
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011 2012(f) 2013(f) 2014(f) 2015(f) 2016(f)
U.S. Department of Commerce, ITA, Office of Travel & Tourism Industries; Secretaria de Turismo (Mexico); Statistics Canada. -- April 2012 forecast
OTTI Travel Forecast Inbound Travel to the U.S. from Asia Asia Asia
Asia Asia
Japan Japan Korea Korea China China India India Taiwan Taiwan
2011 2011
2012 2012
2013 2013
2014 2014
2015 2015
2016 2016
16 / 11 16 / 11
7,247 7,247 3,250 3,250 1,145 1,145 1,089 1,089 663 663 290 290
7,915 7,915 3,336 3,336 1,233 1,233 1,474 1,474 692 692 313 313
8,562 8,562 3,403 3,403 1,319 1,319 1,853 1,853 734 734 330 330
9,229 9,229 3,482 3,482 1,394 1,394 2,248 2,248 778 778 345 345
9,979 9,979 3,564 3,564 1,473 1,473 2,713 2,713 827 827 360 360
10,799 10,799 3,635 3,635 1,552 1,552 3,246 3,246 879 879 378 378
3,552 3,552 385 385 407 407 2,157 2,157 216 216 88 88
12 / 11 12 / 11
13 / 12 13 / 12
14 / 13 14 / 13
15 / 14 15 / 14
16 / 15 16 / 15
16 / 11 16 / 11
----Japan --Japan --Korea --Korea --China --China --India --India --Taiwan - - Taiwan - - Source: OTTI - April 2012 forecast
9% 9% 3% 3% 8% 8% 35 % 35 % 4% 4% 8% 8%
8% 8% 2% 2% 7% 7% 26 % 26 % 6% 6% 6% 6%
8% 8% 2% 2% 6% 6% 21 % 21 % 6% 6% 4% 4%
8% 8% 2% 2% 6% 6% 21 % 21 % 6% 6% 4% 4%
8% 8% 2% 2% 5% 5% 20 % 20 % 6% 6% 5% 5%
49 % 49 % 12 % 12 % 36 % 36 % 198 % 198 % 32 % 32 % 30 % 30 %
Forecast for Chinese Visitation to the U.S.
What does this mean for MA?
Chinese MA Numbers Visitation to MA:
139,000 visitors Est. Visitor Spending: $285 million State & Local Taxes: $18 million
Massachusetts prestigious academic institutions are
critical to the image of the state in China Prep Schools Undergraduate courses Postgraduate courses Executive Training Business Investment
MOTT Moving Forward in China Capitalize on Brand USA partnership as they develop
marketing strategy for China Strengthen relationships with Chinese receptive operators and tour operators Coordinate MA presence at key China trade shows Host press trips and trade familiarization trips Invest in social media & promotional presence
International Marketing Program Questions? Betsy Larkin Senior Manager, International Marketing Massachusetts Office of Travel & Tourism
[email protected]
