Highlights of the Cayman Islands Marketing in Europe, Canada & the United States

Pilar BushDept of Tourism,

September 13, 2007

Product Development & Management

Public Relations &Image Management

Research & Information Management

Strategic Planning & Technical Policy Advice

Marketing & Promotions

Roles & Function of the Dept. of Tourism

Dept. of Tourism

Overview of Role & Responsibilities

Agenda

DOT Background Information

Current Situation & Objectives

Highlight marketing activities in Europe, Canada and the US

Marketing Challenges for the Future

Situational Analysis

Visitor Arrivals Year to Date

Cruise Arrivals with Year-to-Date (YTD) Totals

Stay-over Arrivals with YTD Totals

Stay-over Arrivals - YTD Totals (Jan – Aug)

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100000

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250000

2003 2004 2005 2006 2007

year

# of

visitor

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Arrivals by Region: AUGUST

2006 2007 % Diff. 2006 2007 % Diff. 2006 2007 # Diff.

USA 14,556 15,317 5.20% 34,872 36,414 4.40% 82.80% 80.90% 9,729

Northeast 5,266 5,299 0.60% 10,559 10,985 4.00% 26.60% 26.50% 4,237

Midwest 2,154 2,014 -6.50% 5,366 5,066 -5.60% 18.40% 17.60% 1,240

Southeast 3,533 3,938 11.50% 9,128 9,939 8.90% 18.80% 18.00% 1,307

Southwest 2,477 2,586 4.40% 7,171 7,242 1.00% 13.10% 12.60% 1,130

West Coast 1,126 1,480 31.40% 2,647 3,182 20.20% 5.80% 6.20% 1,815

Europe 1,258 1,425 13.30% 2,302 2,894 25.70% 6.10% 6.60% 2,047

UK & Ireland 869 1,005 15.70% 1,643 2,138 30.10% 4.40% 4.90% 1,749

Continental Europe 389 420 8.00% 659 756 14.70% 1.60% 1.60% 298

Canada 574 708 23.30% 1,203 1,527 26.90% 5.40% 5.50% 1,232

DOT Subtotal 16,388 17,450 6.50% 38,377 40,835 6.40% 94.30% 93.00% 13,008

Other 1,676 2,031 21.20% 3,943 5,541 40.50% 5.70% 7.00% 3,648

Total Air 18,064 19,481 7.80% 42,320 46,376 9.60%

Total Cruise 144,179 99,753 -30.81% 266,960 208,949 -21.73%

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For Month August Quarter 3 % Total Air Arrivals YTD

Year to Date 2006 –vs- 2007 Arrivals

COUNTRIES YTD for 2006 YTD Difference YTD for 2007 %

 USA 159,669 9,729 169,398 6.1

Canada 10,357 1,232 11,589 11.9

Europe 11,800 13,847 2,047 17.3

<UK & Ireland> <8,574> <10,323> <1,749> 20.4

Other 10,980 14,628 3,648 33.2

Total Air Arrivals 192,806 209,462 16,656 8.6

Current Room Stock

Current Room Stock*Current Room Stock*GCM, CYB, LYB

Category GCM CYB LYC TOTAL

GUESTHOUSE 294 75 18 387

APT / CONDO 1788 64 48 1900

HOTEL 2058 63 76 2197

TOTAL 4140 202 142 4484

Based on available bedrooms, as of August 30th 2007

Current Room Stock*Current Room Stock*GCM, CYB, LYB

Category GCM CYB LYC TOTAL

GUESTHOUSE 294 75 18 387

APT / CONDO 1788 64 48 1900

HOTEL 2058 63 76 2197

TOTAL 4140 202 142 4484

Based on available bedrooms, as of August 30th 2007

Occupancy Statistics

Occupancy Statistics GCM, CYB, LYB

Hotels Hotels Apts/Condos & Guesthouses

Apts/Condos & Guesthouses

2006 2007 2006 2007

January 59% 69% 42% 40%

February 71% 77% 56% 51%

March 79% 81% 56% 56%

April 72% 69% 52% 47%

May 64% 65% 38% 40%

June 62% 62% 44% 46%

July 56% 60% 46% 48%

August 48% 43% 32% 39%

Non-Stop Airlift

Public & Private Sector Goals For 2008

Increase Stay Over Visitation

2007 … … Goal is for 300,000 Visitors

2008 … … Goal is for 317,000 Visitors

Improve the Visitor Experience

Develop effective information exchange between stakeholders

Agenda

DOT Background Information

Current Situation & Objectives

Highlight marketing activities in Europe, Canada and the US

Marketing Challenges for the Future

Top 3 Strategic Objectives

Generate Brand Awareness

Communicate Brand Relevance

Motivate Visitation

CI Marketing in the Europe

Marketing Objectives

To increase European visitor arrivals

Raise awareness for the Cayman Islands as a luxury holiday destination through increased marketing investment

Redefine the target market and geographical priorities

Drive traffic to website as the primary source of information

Whilst also addressing structural challenges affecting growth - airlift, hotels, focus on Europe, Cayman Airways and DMC

Redefining the target market

74% of all European visitors from the UK

Target redefined as up market 50+, HHI £100,000+

Well traveled

Adventurous but want creature comforts

‘Five Star Explorers’

Geographically live in wealthier areas - London and the North West

Advertising strategy

Media strategy

Two bursts of activity - February and October

Radio, press and online mix

Weekend focus on radio promotions and airtime (e.g. Classic FM) and in national newspaper supplements (e.g. Times, Telegraph)

Banner activity on relevant websites (e.g. 50 connect, CN Traveler)

Continuous online presence - search

Advertising strategy

Creative strategy focused on ‘educating’ the audience on what the Cayman Islands has to offer

Further information available on the website or as downloadable podcasts on radio station websites

Appeals to audience interests

Taking attractions and aspects of the Cayman Islands that match these interests

Nature, wildlife, restaurants, relaxation, dive/snorkelling

Creative - press and online

PR strategy

Supporting the same strategy and targeting the same core audience

Also supporting niche audiences and special interests: family, dive, adventure, romance, wildlife

Multi-faceted campaign combines communication of key targeted messages with the distribution of additional themes and stories

Responding to changes in consumer media habits

Dynamic and organic campaign incorporating all types of media

Big Thinking

BBC Wildlife supplement

Broadcast TVRugby 7’s and SportsAdventure

Radio syndicationBlue Iguana

Online developments

Booking portal - www.caymanislandstravelmarket.com

Introduction of a booking portal, supporting the trend towards independent bookings

Increase in the use of the internet to research and book holidays (it is predicted that 66% of all travel bookings will be made online)

Cayman Islands microsite to be launched in October

Supporting the strategy of ‘educating’ our target audience

A visual and interactive experience

European visitor arrivalsYTD Aug 2007 +17.34%

EUROPEAN ARRIVAL FIGURES

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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Months of Arrival

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2006

2007

Canadian Marketing Strategy

2007 | 2008

Presented September, 2007

Consumer Market Matrix

• Meetings and Incentives•Romance

Festivals • Spa • Cruise• Culture & Heritage

Core Canadian Target Market: Consumer

ATTRIBUTES• HHI 100 K+

• Predisposed to Luxury Travel• Age 35 - 65

• Expect quality experience for money

NICHE• Cross Generational Families (female skew)

• Dive/Nature/Soft Adventure• Culinary

SUPPORT• P.R.

•AdvertisingSecondary Market

Filler Market

Target Markets Matrix

PROVINCES • Quebec • MaritimesCITIES • Montreal • Quebec City

•Halifax

Secondary Target Markets

Core Trade/ConsumerTarget Market - Region

PROVINCES• Ontario • Alberta

• British ColumbiaCITIES

• Economically-viable cities intarget provinces:• Toronto GTA

• Ottawa• Calgary/Edmonton

• Vancouver

Canadian Advertising 2007 | 2008

Brand

Awareness

Image / look

Publications

Ad Frequency

Relevance

Targeted Message

Niche Markets

Integrate Sales / PR

Visitation

Promote Ease of Access

Promote Partners

Call to action / Web

Advertising Priorities

Magazine Ads: Consumer

Magazine Ads: Consumer / Romance

Canadian Public Relations 2007 | 2008

2007 | 2008 – PR Objectives

• Position the Cayman Islands as THE leading, up market Caribbean destination for discerning Canadian travellers

• Elevate the profile of the Cayman Islands in Canada, seize this opportunity to “refresh” the brand with media and key influencers

• Further develop existing relationships with media contacts, forge new ones

• Work in unison with Marketing & Advertising to fully leverage opportunities

2007 | 2008 - PR Strategy

• Immediately establish a clear presence with the media

• Utilize creative tactics to build excitement/buzz for the brand

• Expand media base to include niche outlets consumed by discerning Canadians, ie. fashion, cuisine, home décor, professional pubs, etc. in addition to working with core travel media

• “Create the news” with proactive media relations efforts, keep CI on the radar throughout the year

Cayman Islands Department of Tourism - Canada

RBA ADVERTISING

CI Marketing in the United States

Families

Travel Trade

Dive

Romance

Interest-based transients

Sun, sea, sand and spa seekers

Age 30-64

HHI = $100K+College Grad+

Experiential

Active

Predisposed to Caribbean travel

Own Passport

CORECORE

EXTENDEEXTENDERR

FILLERFILLER

Cayman Islands Target Audience

‘Sunken Treasures, Sparkling Pleasures’ new luxury ad developed for the luxury publications that were added recently to media plan.

Response to the increase in HHI to >100k

US Print Creative

‘Jazz Riffs, Fork Lifts’ brand ad with the 2007 Cayman jazz fest tag.

US Print Creative

‘Spoiled Little Kids’ brand ad developed to speak to the ‘Baby Boomer’ demographic

US Print Creative

Cayman jazz fest ad featuring Brian McKnight.

November 29 & 30 and December 1st.

US Print Creative

US Print Creative

Cayman Airways ad promoting new non-stop service to JFK in New York.

Out of Home

Interactive

caymanislands.ky/jfk landing page

caymanislands.ky/jfk landing page

Hotel offers

Agenda

DOT Background Information

Current Situation & Objectives

Highlight marketing activities in Europe, Canada and the US

Marketing Challenges for the Future

Keys to Success

Focus on Getting the Right Visitor To the Cayman Islands and at the Right Time

Dedicate our time and money to that deliver highest ROI

Ensure that all stake holders are engaged, committed and results-oriented

Embrace new technologies & leverage our combined marketing resources

Sustain current cooperation between public and private sector

Maintain visitor safety

Ensure responsible management of the marine environment

Manage the broader image of the Cayman Islands

Thank you