december 9, 2005 the asian american market: a lucrative untapped opportunity for caribbean tourism...
TRANSCRIPT
December 9, 2005
The Asian American Market: A Lucrative Untapped Opportunity
for Caribbean Tourism
presented to
2
Who Is The Ideal Target For Caribbean Tourism ??
• Sizeable Population with future growth
• Educated / Affluent
• Frequent Travelers (strong per-trip spending)
• Close Proximity
• Distinctly Targetable / Reachable
4
Automotive
5
Telecommunications
6
Others
Who are the Asian Americans?
8
The Asian American Market
• 11.9 million: 4.2% of the US population (includes 1.7 million multiracial Asians)
• 10.2 million: 3.6% of the US population (single-race Asians only)– 50+% in CA, NY, TX– 12% of California– 10% of NYC, 10% of LA, 30% of SF– Key secondary markets:
• Chicago, DC-MD-VA, Houston/Dallas, Seattle, Philadelphia, Boston, Atlanta
• Fastest growing racial groups in the U.S.- 49% population growth since 1990– (White 5.8%, Black 15.8%, Native American 22.9%)
• Highest median HHI > $9,000 ahead of non-Hispanic white– Asian $55K, Non-Hispanic White $46, Hispanic $33k, Black $30k
• Highest level of educational attainment: 44% BA or higher– Non-Hispanic White 28%, Black 17%, Hispanic 11%
• One of the highest rates of entrepreneurial activity– 1997: 893K businesses nationwide = $302 billion in revenue
– 1997: 11% of all businesses in CA, 8% of all businesses in NY
9
Source: US Census Bureau, Census 2000
The Asian American Market
• Asian households are more likely than any other group to be in the $75K or above annual income range.
Household Income above $75,000
35%
27%
13% 13%
0%
10%
20%
30%
40%
Asian White Hispanic Black
10
Top Asian Groups in the U.S.
• 87.5% of Asian Americans are accounted for by the top six subsegments*:
In rank order by national population
• Chinese 2,432,585
• Filipino 1,850,314
• Asian Indian 1,678,765
• Vietnamese 1,122,528
• Korean 1,076,872
• Japanese 796,700
*Note: only includes Asians who reported a single race.
Asians by sub-segment
Asian Indian 16.4%
Chinese 23.7%
Filipino 18.1%
Japanese 7.8%
Korean 10.5%
Vietnamese 11.0%
Other Asian 13%
Source: US Census 2000
11
% Of Foreign Born
45%
91%
76%
70%
65%
78%
0% 20% 40% 60% 80% 100%
Vietnam
Korea
Philippines
India
Chinese
Japan
65%70%
81%94%94%
53%
0%10%20%30%40%50%60%70%80%90%
100%
Vietn
ames
e
Korean
Chines
e
Asian
-Ind
Filipin
o
Japan
ese*
In-language Preference
Source: Foreign Born Current Population Survey, 2000; In-Language Preference Census 2000
*NOTE: US Census statistics for Japanese are exclusive of Japanese expats/foreign students,approximately 250k in any given year. These groups are highly Japanese-language preferred.
The overwhelming majority of Asians are foreign born and exhibit a
corresponding strong preference for in-culture/language communications.
The overwhelming majority of Asians are foreign born and exhibit a
corresponding strong preference for in-culture/language communications.
Asian-American Demography: Foreign Born & Language Preference
As of Census 2000, and for the first time in history, Chinese is now the 2nd
most prevalent foreign language spoken in US households after Spanish.
As of Census 2000, and for the first time in history, Chinese is now the 2nd
most prevalent foreign language spoken in US households after Spanish.
12
Asian American Media Landscape
NEWSPAPERS MAGAZINES TELEVISION RADIO TOTAL
Chinese 68 20 25 17 130
Vietnamese 34 45 12 11 102
Korean 46 16 16 13 91
Filipino 37 11 24 8 80
Indian 20 13 26 17 76
Japanese 20 18 23 5 66
TOTAL 225 123 126 71 545
PRINT BROADCAST
• Asian American in-language preference for communications is evidenced by a rich in-language media environment
13
Asian Media Cost
Source: NBC Spot Sales, Nielsen, Bravo, Kang & Lee
14
Chinese Media CPM
Geo
Geo
Asian Americans -Geographic Distribution
16Source: U.S. Census Bureau, Census 2000
Asian-American Demography: Geographic Distribution
Over half of Asians live in three states: California, New York, Texas
Rank State Asian Cum %1 California 3,697,513 36%2 New York 1,044,976 46%3 Texas 562,319 52%4 Hawaii 503,868 57%5 New Jersey 480,276 61%6 Illinois 423,603 66%7 Washington 322,335 69%8 Florida 266,256 71%9 Virginia 261,025 74%
10 Massachusetts 238,124 76%11 Pennsylvania 219,813 78%12 Maryland 210,929 80%13 Michigan 176,510 82%14 Georgia 173,170 84%15 Minnesota 141,968 85%16 Ohio 132,633 86%17 North Carolina 113,689 88%18 Oregon 101,350 89%19 Colorado 95,213 89%20 Arizona 92,236 90%
90% of allAsians livein the top 20states
76% of allAsians live inthe top 10states
17
Closest Asian Feeder Markets For The Caribbean
New YorkTotal Asians - 1,437,583 Top Groups:Chinese - 504,793Asian Indian - 398,425Korean - 171,423
Atlanta Total Asians - 133,073Top Groups:Asian Indian - 35,761Vietnamese - 24,248Korean - 21,862
BostonTotal Asians - 231,492 Top Groups:Chinese - 83,238Asian Indian - 42,153Korean - 33,164
ChicagoTotal Asians - 389,403 Top Groups:Asian Indian - 115,501Filipino - 82,936Chinese - 69,662
Washington DCTotal Asians - 393,957 Top Groups:Asian Indian - 86,496Chinese - 76,596Korean - 74,052
Houston Total Asians - 224,303Top Groups:Vietnamese - 64,155Asian Indian - 51,678Chinese - 47,022
DallasTotal Asians - 192,726Top Groups:Asian Indian - 48,854Vietnamese - 45,488Chinese - 34,581
18
Asian Profile In Core Caribbean Feeder Markets
Source: Census 2000
Asians Alone New York Washington DC Chicago Boston Houston
Median Household Income $54,548 $60,846 $59,376 $52,307 $50,816
Percentage of Asian Americans (>25yrs) who have a Bachelor’s degree or higher
48% 54% 57% 51% 48%
Total Population New York Washington DC Chicago Boston Houston
Median Household Income for Total Population
$50,795 $57,291 $51,046 $52,792 $50,816
Percentage of Total Population (>25yrs) who have a Bachelor’s degree or higher
31% 37% 29% 34% 27%
Opportunities to Market Tourism to
Asian Americans
20
Asian American Traveling Behavior
• Since Asian-Americans have, on average, the most affluent
households in the US, they are among the most attractive
consumer audiences for marketers of international travel
products:
– Most likely to travel by air.
– Most likely to travel first-class or business class.
– Most likely to spend more on a per-trip basis.
Source: The Minority Traveler
21
157
143
113109
100
0
20
40
60
80
100
120
140
160
180
Gambling Nightlife/dancing Theme/AmusementParks
Shopping Golf/Tennis/Skiing
Ind
ex v
s. T
ota
l U
S D
om
esti
c Tr
avel
lers
Top Five Popular Destination Activities• Gambling is the most popular tourist destination activity for Asian
Americans followed by Nightlife and Theme Parks
Source: The Minority Traveler 100=Total U.S. Domestic Travel
22
93
103
100
100
7 nights or more
3 to 6 nights
1 or 2 nights
Day trips
Asian American Traveling Behavior• On average, Asian Americans take longer trips (4.4 nights) when
compared to the average domestic traveler
100=Total U.S. Domestic TravelSource: The Minority Traveler
23
Asian American Traveling Behavior• Asian Americans tend to spend more heavily per trip when compared
to the average domestic traveler
100=Total U.S. Domestic TravelSource: The Minority Traveler
74
100 100
107
133
0
20
40
60
80
100
120
140
Less than $100 $100-$249 $250-$499 $500-$1,000 $1,000+
Ind
ex v
s.
To
tal
US
Do
mesti
c T
ravell
ers
The Tourism Industry Competitive
Landscape in the Asian American
Market
25
Asian American Tourism Industry Competitive Landscape
• US Tourism– State tourist boards– City Destinations– National Landmarks– Environmental Parks &
Sanctuaries– Theme destinations– Domestic hotel chains, airlines,
rental cars
• Canada Tourism– National tourist board, provincial,
city
• Mexico Tourism– National tourist board, resort
destinations, hotels, other.
• South America Tourism– National tourist boards
• European Tourism– Pan-European tourist authorities– National tourist boards– City destinations– Regional destinations
(Mediterranean)– Eurail– Airlines, hotels, property/car
rentals
• International Airlines
• International Cruise lines
• International hotel chains
• Other travel & leisure marketing– Asia– Africa– Other regions
26
The Only Active Category …..
27
In Conclusion, The Asian American Market…
Has an ideal target profile for a
wide variety of Caribbean
marketers…
Can be distinctly
reached/addressed through
dedicated Asian media and
marketing channels ….
Exhibits a near-complete lack of
competitive clutter in the travel
& leisure categories !!
