REACHING FOR HIGHER GROUNDSport Tourism and Advocacy REACHING FOR HIGHER GROUNDREACHING FOR HIGHER GROUNDSport Tourism and Advocacy Sport Tourism and Advocacy

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• TIAC is the only national organization representing the full cross-section of Canada's $81.7 billion tourism industry

• Mission - Increasing Canada’s competitiveness through:•Increased advocacy•Increased outreach •Research capacity

Who We Are and What We Do

Vision: Create change to drive incremental international visitation

Goal: Drive visitor growth in line with global growth rate (5% annually)

TIAC represents the full value chain of Canada's $81.7 billion travel and tourism sector

TRAVELERS

Outside Goods and Services Local Goods and ServicesEmployment + Sales + Taxes + Wages

Air Cruise Lines Train

Auto

LeisureFood Retail Resorts ConventionsLodging

Agriculture Pensions Education

TouringBusiness

Outdoor

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Canada’s Travel and Tourism Industry

Global Opportunity Continues

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Tourism is the world’s 4th fastest growing export sector

ONE BILLION international travellers

$1 TRILLION in global revenues

5% GROWTH annually

Future growth coming from emerging middle classes: Asia, and South Central America (Brazil)

International Arrivals – Driving Our Fair Share

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Need to get Canada to the 5% international average

2013 Canada Arrivals

Growth

= 1%

2013 World Arrivals Growth

International Visitation - A Long Climb Back

• In 2012, Canada improved to 16th

in international arrivals (from 18th)

• Despite this modest improvement, we’re still short of 2002 levels by about 3.8 million visitors

• In 2012, Canada improved to 16th

in international arrivals (from 18th)

• Despite this modest improvement, we’re still short of 2002 levels by about 3.8 million visitors

Source: UN World Tourism Organization

International Tourist Arrivals (Top 20 Countries – Millions)

Rank 2002 2011 2012

1 France 77.0 France (2010) 77.1 France 83.0

2 Spain 52.3 U.S. 62.3 U.S. (2011) 62.3

3 U.S. 43.6 China 57.6 China 57.7

4 Italy 39.8 Spain 56.7 Spain 57.7

5 China 36.8 Italy 46.1 Italy 46.4

6 U.K. 24.2 Turkey 29.3 Turkey 35.7

7 Canada 20.1 U.K. (2010) 28.3 Germany 30.4

8 Mexico 19.7 Germany 28.4 U.K. 29.3

9 Austria 18.6 Malaysia 24.7 Russian Fed. 25.7

10 Germany 18.0 Austria 23.0 Malaysia 25.0

11 Hong Kong 16.6 Russian Fed. 22.7 Austria 24.2

12 Hungary 15.9 Mexico 22.7 Hong Kong 23.8

13 Greece 14.2 Hong Kong 22.3 Mexico 23.1

14 Poland 14.0 Ukraine 21.4 Ukraine 23.0

15 Malaysia 13.3 Thailand 19.1 Thailand 22.4

16 Turkey 12.8 Saudi Arabia 17.3 Canada 16.3

17 Portugal 11.6 Greece 16.4 Greece 15.5

18 Thailand 10.9 Canada 16.0 Poland 14.8

19 Ukraine 10.5 Poland 13.4 Saudi Arabia 13.7

20 Netherlands 9.6 Macau 12.9 Macao (China) 13.6

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Top 10 Markets for CanadaMany Mitigating Factors – But Policy Matters

China has surpassed GermanyChina has surpassed Germany

US up 2.5%US up 2.5%China strong 15.5%China strong 15.5%

Mexico up 5.7%Mexico up 5.7%

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Increase due to China ADS

Increase due to China ADS

2009 decline due to visa

2009 decline due to visa

How to Get to 5% - Elephant in the Room

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1%US Market

40%China

The 5% Plan

91) Based on $768 average spend per visitor 2) Based on 68% of visitors arrived by air, 200 seats/plane in 2013

3) Based on every $135 365 in additional spending creating 1 new job

$180 million in room night spending

$613 million more in overall

spending1

2,700 more flights2

4,538 more jobs 2,269 for youth3

An additional $80,406,881

in federal revenue

TIAC’s Key Challenge: Advancing the Federal Policy

Agenda

• Key competitive challenges are policy driven

• Under right circumstances, tourism can make a more meaningful contribution to the Canadian economy

• There is no easy button. Industry has to make case for change compelling in an environment where interest groups are clamouring for attention

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How Do We get to 5%? Competitive Barrier Reduction Plan

• A competitively funded marketing effort that drives alignment and can balance key and emerging markets –including US

• A modern aviation and visitor facilitation structure enabling the “mobility economy”

• Addressing infrastructure, programming and labour market issues

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ACCESS PRODUCT & PEOPLE

MARKETING

SUCCESS

Marketing: Connecting America

• $35M Federal Co-Investment per year for 3 years

• Co-investment 1:1 – forging alignment with local/provincial & private sector marketing investment

• Significant opportunities exist• Existing city-pairs

with air access• US economy recovering• US outbound travel up 6% in 2012• 120 M US passport holders

(up 100% since 2001)

Connecting America would be a coordinated campaign to reconnect with t he US travel consumer, leading up to Canada’s 150 th in 2017.

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Access : Visa and Border Issues

Significant progress made - more to do!

Current Recommendations:

•Reducing red tape using technology (ETA) – leading to Visa Waiver for markets like Chile & Brazil

•Optimizing Existing Security Infrastructure (Beyond the Borders)

•Reinvest in Visa Processing

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Access: The Club Sandwich of Taxes and FeesAccess: The Club Sandwich of Taxes and Fees

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The government collects more than $2.17 billion annually in aviation taxes and fees… Plus GST

*estimated

Product: Demand DriversProduct: Demand Drivers

• Business travel• Meetings and conventions

• Sporting events

• Concerts• Festivals

• National Parks

• Cities, food wine• Hunting and fishing

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Advocacy: Make Your Voice Heard

• Subjects have the right to address their concerns with the Crown

• Lobbying – 2 nd oldest profession

Magna Carta, 1215

The 10 Commandments of Influence

1. Reconnaissance saves lives!

2. Think like the animal you hunt

3. Only talk when it improves the silence

4. It’s not who you know, it’s who you get to know

5. Bulls can succeed, Bears can succeed…Pigs get slaughtered

17Inspired in part by Chris Matthews’ book Hardball.

The 10 Commandments of Influence

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6. Don’t treat your friends like the plumber

7. Don’t get mad, don’t get even, get ahead

8. There is no “I” in TEAM – this is a team sport

9. Sometimes winning is losing and losing is winning

10. “All politics is local!” - Tip O`Neil

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Advocacy-All politics is local

• Leverage Parliamentary support

• “Localize”

• Build on established momentum

• Sr. gov’t officials

• Political class

• Building industry consensus and Commitment

Create an Environment for Change

• TIAC Top 50 Strategy

• More than 70 meetings with cabinet ministers, MPs and senior officials

• Regular dialogue PMO and key ministers’ offices

• Federal Tourism Strategy Roundtable meetings

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TIAC ranked 17 th out of 2800 national industry organizations (connectivity)

Frame the Issues: Relevant Research

www.tiac.travel/publications

Gateway to Growth Series

• Create narrative to advance

agenda• Substantiate in economic terms

• Offer realistic practical solutions

• Speak the language of your

audience

• “What’s in it for them?”

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The Next 600 Days

• Get involved at the local, provincial or national level

• Engage your local politicians,opinion-leaders and media

• Alignment: we need to speak with a unified voice and cohesive message

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