ontario tourism market assessment research study - ministry of

Ontario Tourism Market Assessment Research Study

Final Report

Presented to:

Ontario Ministry of Tourism Competitiveness Study

February 2009

2

© Queen’s Printer for Ontario, 2009

Although copyright in the research papers is held by the Queen's Printer for Ontario, the papers were prepared by external companies and their conclusions do not necessarily represent the views of the

Government of Ontario.

ISBN 978-1-4249-8933-1 (PDF)

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Table of Contents

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Executive Summary ................................ 4

Strategic Overview and Recommendations .................................. 16

Detailed General Summary ..................... 22

Overview of Visitation and Spending - Domestic versus U.S. versus Overseas .. 23

Overview of Visitation and Spending - U.S. versus Overseas.............................. 26

North American Opportunity Markets....... 32

Overseas Opportunity Markets ................ 37

Domestic Markets.................................... 44

Quebec Market........................................ 46

United States........................................... 57

Detroit...................................................... 69

New York................................................. 71

Massachusetts ........................................ 82

Illinois ...................................................... 93

New Jersey/Connecticut........................... 104

Florida ............................. 115

Texas .............................. 126

California ......................... 137

Overseas Markets ........... 148

Europe............................. 150

The U.K. .......................... 152

France ............................. 163

Germany ......................... 178

South America................. 193

Central America............... 195

Mexico............................. 197

Asia ................................. 210

Korea............................... 212

Japan .............................. 224

China............................... 236

India ................................ 248

Australia .......................... 257

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Executive Summary

5

Study Overview

Although the global tourism market is growing, Ontario is competing with more destinations than ever before:

The global tourism industry is characterized by newly popular destinations;

Intensified competition; and

Growing disposable incomes worldwide.

For Ontario to be competitive, it needs to strategically pursue markets with the highest potential for growth over the next 10 years or so, in terms of total tourist expenditures, while nurturing its current base of source markets.

This Study provides recommendations for the Province on:

Best prospect markets (Canadian provinces, U.S. states and Overseas markets) which present Ontario with the highest potential for growth over the next several years in terms of total tourist expenditures by targeting:

Populations that are interested in Ontario; and Populations offering the best prospects for translating interest in Ontario to a behavioural response and increased tourism volume.

6

MethodologyThis Study undertook research in the following markets:

Domestic Markets including Quebec and Western Canada.Tier One/Near U.S. markets to provide recommendations on the potential of various consumer groups within these border regions.Tier Three and Tier Four U.S. potential markets.High potential Overseas growth markets.

Attention was given to:

Size

Nature of these markets

Needs and interests of the target populations

Based on available data, this study produced expenditure projections for various potential markets.Within the identified markets, consumer segments were identified that represent Ontario’s most likely consumers.

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Overview Key Findings

Domestic Markets - Ontario’s domestic market continues to be the anchor for the province’s tourism industry and its main source of volume:

Ontario’s domestic market is 4.5 times larger than the U.S. market in terms of numbers of visitors (person visits) and 3.5 times larger than the U.S. market in terms of total dollars spent.Ontario’s proximity to major U.S. population centres and relatively ease of access to many overseas destinations via Toronto’s transportation hub is a double-edged sword. It presents opportunities to attract large numbers of visitors from the U.S. and overseas but also facilitates the outbound movement of domestic travellers. Although recent currency exchange rates may have moderated the outbound effects, the potential for this sort of “leakage”is always present.

While Canada’s western provinces (B.C., Alberta, Saskatchewan) and Quebec hold the largest untapped pools of potential visitors to Ontario, Quebec is a better prospect than the West. In fact, U.S. Tier One markets are a better opportunity than the western provinces and should be pursued ahead of Western Canada.

U.S. - The U.S. market is eight times larger than the overseas market in terms of visitors (person visits) and U.S. overnight visitors spend more per person, per night in Ontario than do overnight travellers from other overseas markets:

U.S. Tier One is Ontario’s key U.S. market: Eastern Michigan (including Detroit); Northern Ohio and Western New York; Tier Three U.S. markets hold considerable potential: New York City, Chicago, New Jersey, Philadelphia and Washington D.C.; and Tier Four U.S. markets hold some potential (principally, California, Texas, Florida, Arizona, Georgia and North Carolina). However, potential visitors are scattered across these states making them less attractive than the aforementioned Tier Three U.S. markets. There is, however, potential to strategically target large population centres in this Tier such as Los Angeles, San Francisco-Oakland, Phoenix and Dallas-Fort Worth.

Overseas - While the UK will remain the top overseas market through 2012, it is clear that China will be overtaking the traditional markets of Germany and France in terms of total visitor spending in Ontario in the next year or two. Mexican tourism expenditures are also expected to overtake those of Germany and France. Indian tourism expenditures may overtake those of Germany by 2012. Although a lower priority, monitor Brazil and South Korea.

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Ontario’s Best Prospect Markets: Quebec

Quebec

Key Segments:

Mature Families, Mature Singles and Couples, and Seniors

Market RecommendationsProfileMarketing should seek to familiarize Quebecers with

Ontario.

Address engrained cultural resistance to Ontario, and English Canada generally, among Francophones. Reach out to Francophones (e.g., French advertising that is sensitive to Quebec cultural nuances; French-speaking tourism staff; French travel information and signage). Destination websites and brochures are popular among Francophones.

Target Montreal and communities along the border.

Similarly, give some emphasis to Ontario destinations and product in close proximity to the Quebec border in order accentuate the ease and convenience of choosing Ontario.

Profile Ontario’s small towns and villages, parks, hiking trails, natural landmarks, beaches, family attractions, B & Bs, country inns, winery tours and theme parks.

Don’t compete directly with Quebec’s iconic attractions, but place more emphasis on differentiating Ontario from Quebec. (e.g., different cultural experience, different landscape and history). Perceived familiarity with Ontario and assumed similarity to Quebec (particularly in terms of landscape and history) represent impediments to stimulating interest.

Leverage cultural/language differences (“it’s like visiting a foreign country without the hassles”)

Mass media have a role to play. Television is hugely popular in Quebec.

Anglophones can also be targeted via non-destination websites and travel magazines.

Untapped potential comprised of roughly 0.5M non-visitors open to the idea of visiting Ontario under the right conditions.

Represents the largest source of Canadian visitors from outside Ontario.

Current visitors are disproportionately Anglophones who are visiting friends and relatives and tend to stay overnight.

Interest in Ontario is fairly broad-based and includes those of average means. Value is an important criterion in trip selection.

Quebecers attuned to visiting Ontario express a wide range of interests which fit well within Ontario’s existing tourism offering: visiting small towns and villages, beaches, parks, hiking trails, natural landmarks, family attractions and to stay at a B & B or country inn, winery tours and theme parks.

Areas of interest: Ottawa, Toronto, Kingston, Prince Edward County and Southern Ontario. Northern Ontario is particularly appealing to Quebecers from the nearby Outaouais/Abitibi region.

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Ontario’s Best Prospect Markets: Tier 1 U.S. Markets

Tier One U.S. Markets: Eastern Michigan; Northern Ohio; Western New York urban markets

Consumer Segments:

Key Target: 45-64 age-range (older parents, working older couples and retired couples)

Secondary Target: 25-44 age-group comprised of a fragmented market with diverse life stages (older and younger families, young and middle-aged singles, and young couples without children)

Market RecommendationsProfile

Maintain focus on these core markets.

Build interest in a return visit to Ontario by broadening the range of products promoted and building bridges from popular, familiar ones.

Ontario should position itself as a “safe locale” without the “hassle” associated with foreign travel.

Promote the availability of quality, mid-range accommodation.

Promote how Ontario’s product meets the interests of both active and less-active travellers in communications.

In the short-term, leverage the lower Canadian dollar and work to reduce existing concerns about border crossing difficulties.

Apathy toward Ontario - “been there, done that”.

The pool of “open” non-visitors is small; the potential lies with previous visitors.

It is important to maintain support here, particularly with respect to fueling incoming short-stay and same-day revenues. However, growth potential is limited and therefore the marketing strategy, here, would be defensive.

Concerns include: economic uncertainty, safety of a destination, wants to avoid the hassle of foreign travel.

Urban and cultural pursuits are popular.

Have broad-ranging interests and are more active and outdoors-oriented than the typical U.S. pleasure traveller. Activities of interest: golfing, horseback riding, sailing and cycling.

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Ontario’s Best Prospect Markets: Tier 3 U.S. Markets

Tier Three U.S. Markets:New York City, Chicago

Consumer Segments:


Secondary Target: 25-44 age-group (younger, upwardly mobile individuals and couples)

Market RecommendationsProfile

There is a general need to build an awareness and image profile or ‘umbrella’ for the Ontario brand in these markets under which specific offerings and destinations can be positioned.

Continue to build on past efforts by promoting key components of the Ontario tourism product.

Promote Ontario’s urban environment and related activities to allure and enhance commitment to return.

Generate “buzz” around the urban experience offered by the GTA.

Given the growing interest in environmental matters, promote Ontario as “green/clean”.

Ontario should position itself as a “safe locale”.

Promote Ontario as an affordable destination e.g., availability of mid-range accommodation.

Promote Ontario’s historical offerings to Chicago market.

Currently maintain large populations of“open” non-visitors to Ontario.

Urban and cultural pursuits are popular. Some evidence that U.S. travellers to Ontario tend to have broad-ranging interests and are more active and outdoors-oriented than the typical U.S. pleasure traveller.

Ontario’s appeal more congruent with natural features (i.e., Niagara Falls) and the natural environment rather than with man-made entertainment offerings or “sun and sand”.

Concerned with economic uncertainty.

Toronto viewed as more green/clean than any U.S. urban centre.

Specific to New York City:

Toronto’s profile and image are virtually non-existent among New Yorkers.

Safety is highly desirable.

Specific to Chicago:

Interested in historic sites.

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Ontario’s Best Prospect Markets: Tier 3 & 4 U.S. Markets

Tier Four Distant U.S. Markets: California, Florida, Georgia, Texas and Arizona

Undeveloped Tier Three U.S. Markets: New Jersey, Philadelphia, Washington, DC

Consumer Segments:


Secondary Target: 25-44 age-group (younger, upwardly mobile individuals and couples)

Market RecommendationProfile

Monitor the numbers of potential Ontario visitors, possibly undertaking research if numbers of potential visitors appear to be growing.

The next step would involve identifying activity and life-stage/psychographic segments for targeting.

The initial approach should be tightly focused geographically to optimize ROI (e.g., Los Angeles, San Francisco, Dallas-Fort Worth, etc.).

Large numbers of open non-visitors.

Launch marketing efforts as budgets allow.

Target New Jersey much like a large urban centre (a campaign targeting New York City could potentially be expanded to include the state of New Jersey).

Promote Ontario as “green/clean”.

Promote Ontario as an affordable destination e.g., availability of high quality, mid-range accommodation (superior to NYC in this respect).

New Jersey ranks first among all states for household income.

Philadelphia and Washington DC each offer a large pool of potential visitors.

May prefer travel to New York and Boston, as closer to home than Toronto.

Drawn by urban and cultural interests, as well as more active/outdoor pursuits.

Growing interest in environmental matters. Toronto viewed as more green/clean than any U.S. urban centre.

Concerned with the economic uncertainty.

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Ontario’s Best Prospect Markets: United Kingdom

United Kingdom

Average age of a British visitor to Canada has fallen from 51 (in 1997) to 44 years of age (in 2007

Market RecommendationProfileIncrease awareness of Ontario destinations within

Canada and Ontario’s unique regional product offer.

Promote the natural beauty of wilderness areas, rivers and lakes, as well as Ontario’s historical sites particularly in relation to British colonial history.

Promote Ontario’s diversity in terms of urban/rural product, and use this to continue to attract larger numbers of younger travellers on their first trip to Canada.

As with all overseas destinations, don’t shy away from the possibility of packaging Ontario with other Canadian provinces to enhance drawing power within a national (CTC) strategy.

Promote Ontario as an affordable destination.

Use clear and comprehensive personalized web services that offer clear travel plans and itineraries.

Testimonies and word-of-mouth (given that U.K. travellers who have visited Canada are typically satisfied and rate Canada ahead of the U.S. and Australia as a destination they want to visit).

TV commercials and travel shows which would highlight the various parts of Ontario should also be considered for U.K. television programming.

While travel to Canada and in particular to Ontario has been decreasing in recent years, the U.K. is Ontario’s largest overseas source of tourism revenue and will continue to be for at least the next 5 to 10 years.

As a commonwealth country, UK travellers feel a high level of comfort in visiting Canada. and view Canadians as warm and friendly.

One of the key motivational factors for visiting Canada is the natural scenery which seems to intermingle with large cities and urban destinations.

Visiting friends and relatives (“VFR”) is a key reason for British travel to Canada.

Lack of sufficient knowledge about Canada as a destination and the product available are the largest barriers to visiting. Canada is often viewed as too vast and can be intimidating to visitors who are used to travelling shorter distances.

British very commonly use the internet to book travel .

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Ontario’s Best Prospect Markets: China

China

Well-established, middle-aged families with a visiting friends and relatives (“VFR”) connection.

Nouveau riche.

Managerial employees likely Joint Venture, foreign company.

35 - 54 years of age.

Canton province strongest market followed by Beijing.

Market RecommendationProfileConcentrate on increasing awareness for

future travel rather than short term gain.

Lack of familiarity with Canada (Ontario) needs to be addressed. Create a strong brand image that has cache value that will stand out against competitive destinations.

Use the web to promote all of Ontario’s product providing details on how to get the most out of a trip as this market wants to see as much as possible. Again, links to neighbouring provinces could increase overall drawing power.

Create a risk-free itinerary to make travel as easy as possible.

TV has strong influence on choice of travel destination (investigate the success of Dashan television show featuring Canada to determine if it would be useful to do a follow-up in the same format).

VFR from Canton province constitutes most immediate potential.

Try to leverage Vancouver 2010 games to benefit Ontario as a necessary destination if you visit Canada.

China’s growing middle class presents the best opportunity to increase visitation. But, without ADS there continue to be limitations.

VFR tends to be the key reason for Chinese to visit Canada, particularly from Guangzhou/Canton province.

Canada is not perceived as a destination with lots to see or do.

Growth of consumerism in China could dissuade travel in near future as consumers purchase household conveniences.

The internet is a strong source of information for Chinese overseas travellers.

Great lack of awareness of Ontario, and its tourism offerings. Ontario/Canada seen as a destination for immigration or education but not necessarily for travel.

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Ontario’s Best Prospect Markets: Mexico

Mexico

travellers tend to be middle-aged or older and well educated.

Strong brand recognition.

Educational travellers- look for education elements incorporated in their trips.

Shopping is very popular, even in comparison with other overseas visitors.

Market RecommendationProfileStrong internet penetration. Use web to

provide greater knowledge about Ontario’s product.

Focus on outdoor experiences and historic sites, potentially Northern experiences, such as wildlife viewing to compete with travel motivators more associated with B.C or other destinations (e.g., whale watching, Rockies).

Use travel media to target this group (e.g., articles, editorials, videos, etc.) to build the Ontario brand. Word of mouth is also important.

Incorporate urban learning experiences with rural outdoors experiences to respond to interests in education, shopping, and seeing wildlife and world heritage sites.

Highlight heritage sites (Niagara Falls, The Rideau Canal), the outdoors, as well as cultural elements within the outdoors, and shopping as key elements in presentation to Mexicans. The combination of these diverse elements in concert with education/historical underpinnings offer good potential to differentiate Ontario from other provinces in Canada.

Growing middle class that is likely to travel outside of the country.

Outdoors and major attractions seem to be key motivational activities for Mexican travellers

Educationally-orientated travellers.

Tend to be pleasure travellers who like to sightsee, shop, and participate in outdoor activities and local culture.

Ontario is the strongest Canadian market for Mexican tourists but is facing competition from B.C.

Strong desire to see places of historical importance such as world heritage sites, and as much as possible on one trip.

Lacking awareness of available product in Ontario.

Travel magazines, shows and guides are strong sources of information.

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Ontario’s Best Prospect Markets: India

India

Higher socio-economic class (one-third of population).

VFR market is strong.

Tends to be younger 18-49 years of age.

Status Seekers.

Ontario captures most of the trips from India to Canada.

Market RecommendationProfilePromote Ontario as a must see status making

destination, particularly Niagara Falls. Build profile of other iconic, potentially status-worthy Ontario attractions and activities.

Consider building on VFR connections. Use Canadian hosts as ambassadors and conduits for extending the travel experience.

Aim to build word-of-mouth advertising as Indians tend to recount travel experiences to colleagues, friends and family.

Potential opportunity in winter months (honeymoon season) as the tendency is to travel to colder climates of the Himalayans but could create more status to visit Canada, particularly if linked to unique “must-do” activities (e.g., snowmobiling, dog-sledding, etc.)

Promote the nightlife and local culture available in Ontario as enticements to this market.

Promote the strong Indian cultural enclaves in Ontario as evidence of a welcoming non-threatening environment within a distinctively foreign land.

Television and radio are appropriate vehicles, focusing on major urban centres. The regional capital of Chandigarh should be included in any media plan given the large number of Ontarians originally from that region.

VFR tends to be a principal reason for travelling to Canada, but more as an afterthought to seeing the sights.

Higher socio-economic class, younger.

Social activities, such as nightlife, clubbing, and experience local culture.

Sightseeing and shopping top motivators.

Niagara Falls is a key attraction for most Indian visitors.

Status is a key travel motivator for Indian travellers.

Interest in Canada is limited compared to other more exotic destinations in Asia or Europe, which may be perceived as more enriching from both a cultural and status perspective.

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Strategic Overview and Recommendations

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Strategic Overview

Focus

Spend to Ontario’s strengths, i.e., where knowledge of Ontario and pools of convertible interest are greatest. This is especially important in the current economic climate. Indeed, even maintaining current volume may be a challenge.

A three-tier planning and investment strategy is recommended:

1. Regional Markets

Focus on markets where there is high potential for return on investment now. In a weaker economy, travellers may be restricting their destination options geographically allowing Ontario to tap into a relatively larger pool of potential visitorscloser to home. Key markets include, Ontario, U.S. near markets, select U.S. mid-markets and Quebec.

This does not imply accepting the status quo. To the contrary, these markets need to be approached with growing sophistication in terms of reaching relevant target groups with appropriate product and messages, and making use of emerging media to engage potential visitors with greater assurance. Packaging product will also become increasingly important as a means of simultaneously adding value and encouraging extended stays.

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Strategic Overview

2. Traditional Overseas Markets

It is important for Ontario to maintain its standing in the traditional overseas markets, where the province already has a presence.

While these markets are not necessarily growing, they will continue to provide valuable revenue streams for the foreseeable future. In particular, the U.K. market is expected to remain the largest source of overseas visitors for at least the next five to ten years.

Work with the Canadian Tourism Commission (CTC) and independently to educate U.K. travellers and provide them with trip-planning information.

Online sources will be a cost-effective medium for communicating the desired message. Customize websites for other major overseas markets such as Germany and Japan.

3. New Overseas Markets

Plan longer-term to build new overseas markets. Monitor and consider assigning higher priority to budgets for Mexico, China and India. First steps should include online educational and promotional efforts, tailoring the site for each market. Co-ordinate and collaborate with the CTC to ensure that Ontario’s desired message and images are included in CTC

efforts.

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Strategic Overview

Although a lower priority than the aforementioned three countries, South Korea and Brazil have also been identified as holding potential. In particular, Brazilian spending in Ontario currently surpasses that of Australians and is projected to grow to match that of visitors from France by 2012.

Significant budgets should not be devoted to developing these emerging markets immediately. Instead, emphasis should be placed on the exploration of opportunities and the eventual crafting of growth plans. Some fundamental questions still need to be answered, such as:

How should these markets be segmented and target groups defined in a manner that best serves Ontario’s interests?

What messages and product are relevant to these target groups?

How much will it cost to break into these markets, and which media and communications approaches will be most effective?

It is also likely necessary to come to terms with the CTC’s leading role in marketing Canadian destinations overseas and whether Ontario’s objectives can be accommodated effectively within the existing structure. Is it possible for Ontario to gain the leverage it needs within these emerging markets and, if not, what are the alternatives? It may very well be that Ontario’s objectives can be well accommodated within the overseas marketing program for the Canadian brand, and certainly this would be desirable. Regardless, it will be necessary to work closely with the CTC to ensure that strategic directions are congruent, that Ontario receives appropriate attention, and that budgets are sufficient and media mix optimized to achieve success.

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Overview – Recommendations and Priorities

Canada

Don’t ignore Ontario as a source market. It is absolutely vital to the health of the domestic industry and open to competitive encroachment.Continue to develop the Quebec market, placing particular emphasis addressing Francophone sensibilities, emphasizing points of differentiation from Quebec and aligning product to interest (both in terms of geographical proximity and activities).The three western provinces (B.C., Alberta, Saskatchewan) do not represent high potential for Ontario at the present time.

United States

Maintain a presence in all Tier One markets as an important defensive/ maintenance measure.Pursue the Tier Three markets of New York City and also Chicago.Develop New Jersey, Philadelphia and Washington D.C. as budgets allow.Consider a targeted strategy for major Tier Four markets longer term.

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Overview – Recommendations and Priorities

Overseas

Work with the CTC to ensure that Ontario’s desired presence and positioning is appropriately represented in overseas marketing for Canada (coordination of strategic direction).Maintain a presence in the traditional core European countries (Germany, France) and Japan.Focus on the U.K. as it will continue to be the overseas revenue leader.Develop China, followed by Mexico and India, as budgets allow. Due to proximity, Mexico represents a better immediate target than India. Mexicans travellers’ interests in nature and outdoor experiences, history and educational experiences fit well with the Ontario offering.Monitor the growth of the middle-class in India and develop communication and advertising programs as budgets allow. Determine whether a low-cost ‘host strategy’ targeted to major ethnic communities in Canada (Chinese, Indian) is viable as a means of generating greater tourism revenue from incoming VFR.Although a lower priority, monitor Brazil and South Korea

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Detailed General Summary

23

Overview of Visitation and Spending - Domestic versus U.S. versus Overseas

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Ontario Continues to be a Key Tourism MarketWhile the purpose of this Study is to explore the tourism potential of specific countries and U.S. regions, the importance of the domestic market cannot be ignored:

It is 4.5 times larger than the U.S. market in terms of numbers of visitors, and 3.5 times larger than the U.S. market in terms of total dollars spent.

Ontarians need to be continually reminded of the tourism opportunities within the province. And these, products and product combinations need to be regularly refreshed.

4.7

17.5

2.2

78.9

$1.5

$3.8

$2.6

$13.0 $165

$319

$216

$1,204

Ontario

Canada (excl. Ont)

U.S.

Overseas

Traffic Volume(#)

Expenditure Volume($)

Expenditure Per Person($)

Person-visits to Ont.(millions)

# spent in Ont.(billions)

Average $ per person

Source: Statistics Canada Travel Survey of the Residents of Canada (TSRC) 2006; International Travel Survey (ITS) 2002-2006

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Proportion of Visitors by Origin Market (2006)Three-quarters (76%) of visitors to Ontario are travelling within the Province (i.e., Ontario residents).Next to Ontario’s domestic market, one in six (17%) are U.S. visitors - by far Ontario’s largest source of foreign visitors. In fact, in 2006, U.S. visitors outnumbered other international travellers by a ratio of 8:1.Visitors from other Canadian provinces are the next largest group, accounting for one in twenty (5%) visitors to Ontario.Finally, two per cent of visitors are international visitors.

OntarioOther CanadaU.S.International

Source: Statistics Canada Travel Survey of the Residents of Canada (TSRC) 2006; International Travel Survey (ITS) 2002-2006

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Overview of Visitation and Spending - U.S. versus Overseas

27

Total VisitsVisitors from the U.S. comprise the lion’s share of foreign travellers to the Province. In 2006, U.S. residents made more than 17M visits to Ontario, compared to 2M visits by overseas residents.There has been a fairly steady downward trend in U.S. visits from 2002 through 2006.Overseas visits faltered in 2003 (SARS was the main reason) and despite recovering in 2004, have been stagnant since then.Although data is not yet available, the high fuel prices experienced in 2007 and 2008, coupled with the economic challenges of 2008 are expected to have considerably curtailed travel to Ontario from U.S. and overseas markets.

2631

7

2013

2200

8

1558

2139

1

2049

1933

4

2172

1750

4

2197

US Visitors (000)* Overseas Visitors (000)*

20022003200420052006

*Source: Statistics Canada ITS, 2002-2006

28

Total Visitors

The decline in U.S. visitors between 2002 and 2006 stemmed mainly from a decrease in same day visitors.Same day visits in 2006 still outnumbered overnight visits (61% vs. 39% of all U.S. visits, respectively). However, unless this negative trend changes by the end of the decade, the proportion of same day visitors could decline to levels below that of overnight visitors.

0

5,000

10,000

15,000

20,000

25,000

30,000

2002 2003 2004 2005 2006

#in

'000

US Total VisitorsOverseas Total VisitorsUS Overnight VisitorsOverseas Overnight VisitorsUS Same day VisitorsOverseas Same day Visitors

Source: Statistics Canada ITS, 2002-2006

29

Same Day Spending

1,385

1,1421,058

885771

191 136 143 118 127

0

500

1,000

1,500

2002 2003 2004 2005 2006

$in

million

USOverseas


Same-day visitors’ spending patterns generally reflect the same trends as same-day visits to the province, with a significant downward trend in spending among U.S. visitors.Overseas same-day visitors are more lucrative to Ontario than U.S. same-day visitors, as the former likely compress more tourist activities into a single day. While overseas visitors represent only 2% of the total same-day visitors in 2006, they account for a disproportionately large share (14%) of the total dollars spent by same-day visitors in Ontario.

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Overnight Spending

3,491

2,815

3,3253,045 3,024

2,292

1,661

2,199 2,370 2,519

0

1,000

2,000

3,000

4,000

5,000

2002 2003 2004 2005 2006

$in

million

USOverseas

Overnight visitors’ spending patterns generally reflect the same trends as overnight visits to the province, with a slight downward trend among U.S. visitors and a slightly upward trend among overseas visitors.Overseas overnight visitors tend to be thrifty compared to their U.S. counterparts and are worth marginally less per person per night, than U.S. overnight visitors. However, because they tend to stay longer, overseas visitors spent almost 3 times as much in Ontario in 2006 than did U.S. overnight visitors on a per person basis. Thus, while they represent only 22% of the total overnight visitors in 2006, they account for a disproportionately large share (45%) of the total dollars spent by overnight visitors in Ontario, making them valuable contributors to Ontario.


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Total Spending – Overnight and Same-Day

4,876

3,9574,383

3,930 3,795

2,483

1,797

2,341 2,489 2,646

0

1,000

2,000

3,000

4,000

5,000

2002 2003 2004 2005 2006

$in

million

USOverseas

Visitors’ spending patterns generally reflect the same trends as overnight visits to the province, with a slight downward trend among U.S. visitors and a slightly upward trend among overseas visitors.Most of this decline is due to a decrease in same-day visitors. Overnight visitation from the U.S. has weakened only slightly. The U.S. will continue to be an important source of visitors in both the short and long-term. There is an immediate need to keep Ontario in the mind-set of U.S. residents and take advantage of opportunities to reinvigorate volume flow.


32

North American Opportunity Markets

33

Ontario’s Best Prospect Markets: North America

RecommendationMarket

Monitor the numbers of potential Ontario visitors, possibly undertaking research if numbers of potential visitors appear to be growing.

The next step would involve identifying activity and life-stage/psychographic segments for targeting within significant population clusters.

Distant U.S. markets with large numbers of open non-visitors such as California, Florida, Georgia, Texas and Arizona (Tier Four)

5.

Launch marketing efforts as budgets allow.New Jersey, Philadelphia, Washington DC (undeveloped Tier Three markets)

4.

Target Montreal and Quebec communities along the Ontario border.

Quebec3.

Continue to build on past efforts.New York City, Chicago (Tier Three)2.

Maintain focus on core markets.Eastern Michigan/Northern Ohio/ Western New York urban markets (Tier One)

1.

34

$99 $105 $106 $120 $134

$261

$739

$213 $465

$127 $659

$13,059 $14,523

$612

$232 $178 $150$146

All CanadaOntario

QuebecManitoba

Western CanadaAtlantic Canada

MichiganNY State

OhioCalifornia

PennsylvaniaIllinois

MinnesotaFloridaTexas

WisconsinMassachusetts

New Jersey


Source: Statistics Canada Travel Survey of the Residents of Canada (TSRC) 2006 ; International Travel Survey (ITS) 2002-2006,

North American Tourism Dollars (2006)Michigan and New York represent the largest U.S. markets for Ontario, while Quebec and Western Canada (B.C., Alberta and Saskatchewan) represent the largest domestic markets.In terms of total visitor expenditures, Michigan, New York State and Quebec are comparable. The long-term decline of same day visitor traffic from the U.S. will continue to present a challenge for Ontario

2006 Visitor Expenditures (in millions)

35

North American Opportunity MarketsNorth America - Important Core Markets:

The U.S. market currently offers Ontario a much more attractive opportunity than individual overseas markets. The U.S. market is eight times larger than the overseas market in terms of visitors and U.S. overnight visitors spend more per person per night, in Ontario than do overnight overseas market visitors. Tier One markets will continue to be key. Within Tier One, there are several markets that carry particular weight: Eastern Michigan (including Detroit), Northern Ohio and Western New York are each home to more than 100,000 non-visitors who are open to the idea of travelling to Ontario if the right opportunity were to be presented to them. More importantly, there is strong support for Ontario among the 4.7M visitors from these states who might be encouraged to make a return visit.

North America - Potential Markets:

Tier Three markets hold considerable potential. The top two, in terms of numbers of potential visitors are New York City and Illinois (largely Chicago), each with more than 500,000 residents who are non-visitors to Ontario but who are quite open to choosing it for a future trip.Southeastern Pennsylvania (principally Philadelphia), New Jersey and Washington D.C. also hold considerable promise and should be included in future planning as budgets allow:

Southeastern Pennsylvania has 324,000 who are open to visiting Ontario (with 204,000 residing in Philadelphia).New Jersey has 457,000 who are open to visiting Ontario.Washington D.C. has 289,000 who are open to visiting Ontario.

36


North America - Potential Markets:

Tier Four also holds some potential for Ontario but is less attractive than Tier Three (and not simply due to greater distance). While there are large numbers of people open to visiting Ontario living in the states of: California, Texas, Florida, Arizona, Georgia and North Carolina, these potential visitors are geographically scattered and therefore difficult to reach cost-effectively with sufficient weight and frequency to be persuasive. For example, while Texas has 614,000 potential visitors to Ontario, they are scattered across a large state, which poses a significant challenge with respect to marketing. In contrast, a Tier Three city such as Washington D.C. has 289,000 potential visitors within one MSA, which lends itself to more focused communication efforts (i.e., messaging and media).Tier Two markets hold some potential but are clearly less attractive than those in Tier One and Tier Three since Tier Two essentially represents more distant areas within the Border States with generally lower population concentrations. The Tier Two market potential is largely spread over Western Michigan, Central & Western Ohio and Eastern New York State. Efforts to target Tier One are also likely to have a positive impact on some of the Tier Two markets through advertising spillover.

Canada

Within Canada, the West and Quebec hold the largest untapped pools of potential visitors to Ontario (997,000 and 554,000, respectively). Quebec’s proximity presents Ontario with a relatively greater opportunity to attract potential visitors from this province than from among the more distant pools of potential visitors scattered throughout the three most western provinces.

37

Overseas Opportunity Markets

38

Ontario’s Best Prospect Markets: Overseas

Overseas

Somewhat lower priority than China; Launch marketing efforts as budgets allow, focusing on key urban markets. Place emphasis on the unique combination of urban life, natural experiences history and education that Ontario offers within Canada.

Mexico4.

RecommendationMarket

Monitor economic conditions and tourism statistics to see whether it may be worthwhile to launch marketing efforts.

Brazil6.

Launch marketing efforts as budgets allow, focusing on key urbanmarkets, including the Punjab. Place emphasis on differentiating, unique, status-worthy experiences that will fuel conversation ‘back home’.

India 5.

Increase marketing efforts in major urban centresChina3.

Maintain a presence in these core marketsGermany, France, Japan2.

Boost efforts to attract more U.K. residents (while the U.K. is a traditional market, it contains undeveloped potential which may require less effort to capture than new, emerging markets). There are significant opportunities among emerging overseas outbound travellersin the younger age cohorts.

U.K.1.

39

$24$48$66$69$92$104$113$116$151$154

$250$530

$612$739Michigan

NY State

UK Japan China

Germany Mexico France

India Brazil

South KoreaAustralia

NetherlandsSpain

Source: Statistics Canada ITS, 2002- 2006

Overseas Opportunity MarketsTo help set the overseas markets into context, U.S. visitors provide an extremely important revenue stream. Visitors from Michigan and New York State spend more in Ontario annually than do overseas visitors from the top six countries combined.The U.K. and to a lesser extent Japan are currently the two most attractive overseas sources of tourism spending in Ontario.

2006 Visitor Expenditures (in millions)

40

Overseas Opportunity MarketsThe Overseas Market:

Regionally, Europe is by far the largest overseas market for Ontario generating 1.1M visitors in 2006. In distant second position, the region of Asia supplied 658,000 visitors to Ontario during the same year.In terms of growth, while the European outbound market has been expanding considerably in recent years, visits to Canada and to Ontario have not been growing. Asia and the much smaller region of South America however, are exhibiting steady growth in Ontario visitation.Despite this, at current growth rates, Asia will not overtake Europe in terms of numbers of visitors to Ontario for at least 10 years.Nevertheless, Asian expenditures in Canada and Ontario are strong and growing. In particular, spending by Chinese visitors to Ontario is expected to overtake that of Japanese visitors in the next couple of years. Similarly, spending by Indian visitors to Ontario is expected to overtake that of French visitors in the next few years.All of this implies that it is important for Ontario (via Canada) to maintain a strong presence in its traditional overseas markets over the next few years, but to also begin implementation of strategies to develop a presence and tap into the potential of newly emerging markets. This is a transitional phase that is likely to play itself out over a long period of time. It should be noted as well, that there is no intended implication here to abandon the traditional source markets long-term. It is anticipated that they will continue have a prominent place as drivers of external tourism volumes. However, they will ultimately become part of a larger and more diverse global mix of source markets.

41

Annual Growth in Long-Haul Travel from Key MarketsThe following chart reflects the potential of various key markets – based on their travel to destinations that are at least as far as Ontario. It does not reflect the incidence of visiting Ontario. Based on this definition, Brazil, Spain, Australia and Mexico hold considerable potential. This data is taken from the report “Identifying Ontario’s Opportunities in the Overseas Travel Market”.

Percent Change

2003 2004 2005 2006 2002-2006

Average Annual Rate Of Growth

% % % % % % Country: UK -2.8 +16.4 +8.5 +6.4 +30.6 +7.1 France +0.4 +12.7 +7.5 +1.5 +23.4 +5.5 Japan -11.9 +14.4 +4.6 -3.1 +2.1 +1.0 Germany -4.8 +12.7 +5.9 +2.2 +16.1 +4.0 Australia +2.5 +30.2 +13.4 +5.0 +59.0 +12.8 Italy -2.4 +16.8 +4.7 +7.5 +28.3 +6.6 Netherlands -1.2 +14.6 +5.5 +4.9 +25.3 +6.0 Spain +5.1 +22.5 +22.0 +10.3 +73.3 +15.0 Mexico -5.3 +14.5 +19.3 +6.8 +38.0 +8.8 Brazil -18.7 +43.7 +24.1 +24.1 +79.9 +18.3

Source: Ministry of Tourism: Identifying Ontario’s Opportunities In The Overseas Travel Market (Oct. 2008)

42

Overseas Opportunity MarketsOverseas Market – Projected Change in Long-Haul Travel

Of these key markets with the exception of Japan, all are expected to grow substantially between 2006 and 2012 based on the analysis in the report “Identifying Ontario’s Opportunities in the Overseas Travel Market”. Although China and to a lesser extent Brazil, are expected to realize the greatest growth, the potential opportunities for Ontario need to be considered in light of actual visitation and expenditures. The U.K. will continue to be the leading source of overseas visitors based on these projections. It should be noted that India is not included in this analysis.

Visits To Places Equal Or Farther Than Ontario

2006 2009 2012

Rate Of Change

2012/2006 Country Of Origin: UK 13,512,870 14,525,810 16,099,580 +19.1% France 5,666,060 6,600,580 7,170,050 +26.5% Germany 5,497,170 6,405,930 6,920,260 +25.9% Japan 5,019,890 4,391,290 4,872,510 -2.9% Australia 2,700,000 3,137,510 3,566,830 +32.1% Italy 2,532,270 2,940,590 2,940,590 +16.1% Netherlands 2,238,180 2,695,080 2,939,700 +31.3% Spain 2,169,960 2,492,480 2,721,860 +25.4% Brazil 1,665,280 2,253,310 2,523,250 +51.5% Mexico 1,573,840 1,790,890 2,035,790 +29.4% Switzerland 1,280,820 1,487,330 1,648,010 +28.7% Sweden 1,270,580 1,509,690 1,628,280 +28.2% Korea, Republic 1,051,730 1,105,360 1,233,150 +17.2% Belgium 786,910 877,910 954,040 +21.2% China 646,600 869,980 1,054,850 +63.1% Source: Ministry of Tourism: Identifying Ontario’s Opportunities In The Overseas Travel Market (Oct. 2008)

43

Potential Spending based on Visitation Forecasts

20122010200820062012201020082006

$30,000,000$29,000,000$27,000,000$23,995,98338,211 36,988 33,693 30,313 Spain

$132,000,000$118,000,000$109,000,000$91,744,95166,318 59,258 54,721 45,983 Brazil

$53,000,000$48,000,000$51,000,000$47,745,13063,144 56,987 59,914 56,519Netherlands

$77,000,000$72,000,000$72,000,000$65,597,37170,866 65,636 65,609 60,125 Australia

$102,000,000$87,000,000$89,000,000$68,877,591101,103 85,757 88,370 68,046 South Korea

$282,000,000$234,000,000$215,000,000$154,198,155157,134 130,623 119,596 85,952 China

$171,000,000$145,000,000$135,000,000$103,573,942143,339 121,195 112,654 86,691 India

$186,000,000$165,000,000$165,000,000$115,528,089159,370 140,913 141,318 98,949 Mexico

$129,000,000$118,000,000$114,000,000$112,521,878149,000136,000132,000130,124 France

$160,000,000$155,000,000$154,000,000$151,266,219138,000134,000133,000130,704 Germany

$219,000,000$204,000,000$195,000,000$250,095,230159,000148,000142,000181,771 Japan

$528,000,000$499,000,000$509,000,000$530,334,577419,000396,000404,000421,847 UK

Current and Projected Spending in OntarioCurrent and Projected Total Visits in OntarioOrigin

Source: Ministry of Tourism: Identifying Ontario’s Opportunities In The Overseas Travel Market (Oct. 2008); ITS 2002-2006

The top five overseas revenue generators are expected to retain their leading positions through 2010, but by 2012, India may overtake Germany. Moreover, while the U.K. clearly is expected to retain its number one status, the ranking of the other top countries will change. China is expected to overtake Japan as the runner-up in terms of tourism dollars. Mexican tourist spending will possibly overtake that of the Germans.Note: The projected visitation and potential spending are based on a forecast by Oxford Economics for visitation to Ontario.

44

Domestic Markets

45

Canada – Current and Potential Domestic VisitorsDomestic Market

Border Provinces

Manitoba

The West

Atlantic

Ontario

Quebec

Rest of Canada

VisitorOpen

# in '000

433 299

Atlantic

1,436554

Quebec

316 53

OntarioPermanentResidents

1996 - 2006

5,679

565

Total Ontario

255 252

Manitoba

149997

The West

Source: TAMS Conversion Model, 2006

The West holds the greatest untapped potential for visitors (non-visitors open to visiting Ontario). However, due to distance, Quebec may offer greater potential reward.

46

Quebec Market

47

Quebec Summary

The Quebec market represents the largest source of Canadian visitors from outside Ontario. Overnight visitors constitute the majority of visitors from Quebec.However, these visitors are disproportionately Anglophone and visiting friends and relatives.Quebec also holds untapped potential, with roughly 0.5M non-visitors open to the idea of visiting Ontario under the right conditions.Quebecers who express any interest in visiting Ontario, express a wide range of interests which fit well with the existing tourism offering. In particular they mention that they would like to visit small towns and villages, parks, hiking trails, natural landmarks, family attractions and to stay at a B&B or country inn. Winery tours and theme parks are also high on the list of intended activities.Interest in Ontario is centered around the cities of Ottawa, Toronto and Kingston, but also extends to include southern Ontario. Northern Ontario is particularly appealing to those from the nearby Outaouais/Abitibi region.To make inroads into Quebec, Ontario needs to reach out to Francophone travellers as well as Anglophones. This requires French advertising that is sensitive to Quebec cultural nuances and does not appear to compromise. Travel information also needs to be provided in French. French signage will also create positive touch-points. The key to advertising and communications is to address the lack of familiarity with Ontario and perceptions of Ontarians as being unfriendly/unwelcoming people. There is also a need to focus on what is distinctive relative to Quebec itself. This is a challenge given similarities in geography, environment (the outdoors) and the strength of Montreal and other centres in Quebec as focal points for culture and entertainment.Strategies need to be developed to make Francophones feel welcome in Ontario. Having staff who can reach out to Francophones in their own language could be leveraged to make French Quebecers feel comfortable in Ontario.

48

Quebec Summary

Interest in Ontario is fairly broad-based, and includes those of average means. Value is an important criterion in trip selection.Mature Families, Mature Singles and Couples and Seniors are the best prospects.Given its population, the Greater Montreal area is a good target.However, all regions along the Quebec/Ontario border offer good prospects, particularly if an effort is made to attract Quebecers to specific local events and attractions in close proximity to their point of origin.Similarly, give some emphasis to Ontario destinations and product in close proximity to the Quebec border in order accentuate the ease and convenience of choosing Ontario.Profile Ontario’s small towns and villages, parks, hiking trails, natural landmarks, beaches, family attractions, B & Bs, country inns, winery tours and theme parks.Don’t compete directly with Quebec’s iconic attractions. Place more emphasis on differentiating Ontario from Quebec (e.g., different cultural experience, different landscape and history). Perceived familiarity with Ontario and assumed similarity to Quebec (particularly in terms of landscape and history) represent impediments to stimulating interest.Leverage cultural/language differences (“it’s like visiting a foreign country without the hassles”).Mass media have a role to play. In particular, television is hugely popular in Quebec.Destination websites and brochures are popular among Francophones and provide good means of delivering secondary support to broadcast and print.Other means of targeting Francophones include non-destination websites and government tourism offices.In addition to mass media and brochures, Anglophones can also be targeted via non-destination websites and travel magazines.

49

Total Visitors from Quebec (000,000)

1.226

2.008

2006

Same Day Overnight Total *

Average # Of Nights: 2.8

Source: Statistics Canada TSRC, 2006

3.234

The Quebec market represents the largest source of Canadian visitors from outside Ontario. Overnight visitors constitute the majority of visitors from Quebec, representing more than 1.5 times the number of same-day visitors (ratio of 1.6:1 for overnight versus same-day visitors).

50

Main Purpose of TripVisiting friends and relatives is the main reason for Quebecers to visit Ontario, accounting for one-half (49%) of all trips to Ontario.

5%

11%

35%

49% VFR

Pleasure

Other

Busi-ness

Sources Statistics Canada TSRC 2006 Base: All visitors from Quebec 3,234,000

51

Potential to Visit Ontario from QuebecThere is a pool of 554,000 Quebecers across the province who have not visited Ontario but who are open to the idea of doing so if presented with the right opportunity.

1.436

0.554

Quebec

VisitorsOpen

Source: TAMS Conversion Model, 2006Base: Quebec Residents (000,000)

52

Travel Motivators

51%

56%

43%

31%

30%

17%

17%

13%

37%

31%

39%

36%

35%

26%

26%

25%

88%

87%

82%

67%

65%

43%

43%

38%

Main reasons for travel among Quebecers are: “seeing or learning something new and different”; “resting and relaxation”; and “enjoying nature and outdoor activities”.

Seeing or learning something new and different

Resting and relaxing

Enjoying nature and outdoors activities

Experiencing local history and culture

Finding intimacy and romanceExperiencing Francophone history and culture

outside QuebecBeing pampered

Finding excitement and adventure

Always Often Total

Source Decima Quebec Tourism Consumer, 2006 Base: (n=2302).

53

Travel Activities In Ontario - Universal Activities (Top Mentions)

Quebecers who express any interest in visiting Ontario express a wide range of interests which fit well with the existing tourism offering. In particular they mention that they would like to visit small towns and villages, parks, hiking trails, natural landmarks, family attractions and to stay at a B&B or country inn. Winery tours and theme parks are also high on the list of intended activities.

40%

41%

42%

39%

30%

37%

29%

44%

41%

31%

30%

26%

49%

47%

44%

46%

54%

46%

53%

37%

40%

50%

43%

51%

89%

88%

86%

85%

84%

83%

82%

81%

81%

81%

79%

77%

Visiting small towns and villages

National and provincial parks/nature preserves

Other family attractions

Staying at a bed and breakfast or country inn

Natural landmarks

Hiking/nature trails

Historic and heritage sites

Winery tours

Theme parks

Museums

Beaches

Festivals

Very Interested Somewhat Interested Total

Base: Those who are very or somewhat interested in visiting at least one Ontario region (n=1884).

Source: Decima Quebec Tourism Consumer, 2006

54

Barriers to Visiting OntarioQuebecers who are not interested in travelling to Ontario mention a variety of reasons for not visiting the Province. See below. Lack of familiarity, distance, discomfort with the language and perceptions of Ontarians as unfriendly/unwelcoming people are also viewed as major barriers.

Top 13 Barriers To Visiting Region 1. Don’t know enough about it 2. Nothing there that appeals to me 3. Too far 4. Prefer to travel within Quebec 5. Personal reasons 6. Prefer to be served in French 7. Language difficulties 8. No nightlife or entertainment 9. Poor attitude towards people from Quebec 10. Poor/unreliable weather 11. Too expensive 12. Been there before and didn’t like it 13. People are unfriendly/not welcoming

Source: Decima Quebec Tourism Consumer, 2006

55

Destinations Visited in the Last Year

70%

25%

10%

8%

24%

10%

8%

7%

Quebec

Ontario

Atlantic Canada

Other Canada

United States

Caribbean

Europe

Other International

When leaving the province of Quebec, Quebecers tend to travel to two destinations: Ontario or the U.S. They are as likely to visit Ontario as they are to travel to the U.S, demonstrating that the U.S. is a competitive threat and that Ontario must recognize this when trying to entice visitation from Quebec.

Source: Decima Quebec Tourism Consumer, 2006 Base: Took a Trip in the Last Year (n=2,302)

56

70%

72%

79%

40%

43%

27%

83%

72%

English Montreal81%

70%

59%

57%

46%

34%

74%

71%

79%

66%

58%

64%

61%

46%

79%

69%

84%

67%

53%

65%

45%

71%

64%

86%

66%

51%

50%

Total Montreal

na

na

na

na

naQ15) How interested are you in travelling to each of the following destinations within the next 12 months?

Sources: Ontario Ad and Brand Tracking Fall 2007

Interest In Travelling To/Within Specific Destinations During The Next 12 MonthsPercent among pleasure travellers residing in Montreal

87%

70%

47%

67%

48%

39%

70%

71%

French MontrealNote: All illustrated waves contained English and French Montreal samples.

Quebec

New York State

Ontario

New Brunswick

Vermont

Massachusetts

Anywhere else in Canada

Anywhere else in US

Nov '07 Wave

June '07 Wave

Sept '06 Wave

Oct '05 Wave

57

United States

58

Total Visitors from the U.S. – Ontario Market Share

01020304050

2002 2003 2004 2005 2006# (mil)

Total Canada Visitors

Total OntarioVisitors

2002 2003 2004 2005 2006

Share of Total CDN Visitors 65% 63% 62% 62% 61%

Same Day CDN Visitors 75% 73% 72% 71% 72%

Overnight CDN Visitors 50% 47% 50% 50% 50%


Since 2002, the proportion of U.S. travellers to Canada visiting Ontario has slipped slightly from 65% to 61%. This decrease is largely due to declines in same day visitation.

59

All Reasons For Travel To Ontario – U.S. Visitors (2006)

24%20%

14%10%9%

7%7%6%5%4%4%3%3%2%2%1%

ShoppingSightseeing

VFRHistoric SitesBar/Nightclub

Museum/Art GalleriesNature Parks

Cultural PerformancesFishing

CasinosBoating

Festival/FairsZoos/Botanical Gardens

Sports EventsTheme Parks

Golfing ± 0

+1

± 0

+1

± 0

+1

+1

+1

± 0

± 0

+1

+2

+2

+4

+3

+4

Change vs. 2002


The proportion of U.S. visitors who came to Ontario for shopping, sightseeing and VFR has increased since 2002.

60

Main Purpose Of Trip – U.S. Visitors 2006Pleasure is the main reason (mentioned by one-half) for U.S. residents to visit Ontario. In contrast, Quebec visitors are most likely to visit Ontario for VFR (49%), as noted earlier.

16%

51%

25%

8

VFR

Pleasure

Other

Business

[+1]

[-2]

[-1]

[+2]

Source: Statistics Canada ITS, 2002-2006. Visitors to Ontario 17,503,879[ ]= Change from 2002

61

Destinations Visited In Past 3 Years – TravelsAmerica

15%

14%

14%

10%

5%

3%

3%

3%

2%

2%

2%

2%

60%

Mexico

Canada

Caribbean/Bermuda

Western Europe

Ontario

Asia

Eastern Europe

Central America

South America

Pacific

Middle East/Africa

Other

NoneSource: TravelsAmerica 2008 Q1/Q2

In the past 3 years, U.S. travellers have tended to visit three destinations: Mexico, Canada and the Caribbean.

62

Planned Destinations in Next 2 years – TravelsAmerica

17%

13%

13%

12%

5%

4%

4%

3%

3%

3%

2%

58%

Caribbean/Bermuda

Canada

Mexico

Western Europe

Ontario

Eastern Europe

Asia

Central America

South America

Pacific

Other

NoneSource: TravelsAmerica 2008 Q1/Q2

In terms of where U.S. residents are planning to travel in the next 2 years: the Caribbean (17%) ranks ahead of Canada (13%); and Canada is tied with Mexico (13%) and Western Europe (12%).

63

U.S. – Current and Potential Visitors from the U.S.

2,306

4,041

West

VisitorOpen

5,047

2,093

Midwest

4,431

2,418

Northeast

1,016 553

NewEngland

1,9542,772

SouthAtlantic

478 506

East SouthCentral

620 945

West SouthCentral

# in '000Source: TAMS Conversion Model, 2006

64

CM – Potential Visitors – Tier 1 and 2

Tier 1 Visitors Open (# ‘000) (# ‘000)

Total 2,661 505 Eastern Michigan (sub-net) 1,033 149

Detroit 921 112 Northern Ohio (sub-net) 635 123

Cleveland 370 76 Western New York (sub-net) 612 137

Buffalo 291 49 Rochester 264 58

Pennsylvania (sub-net) 380 97

Pittsburgh 290 79 11


Total 1,652 489 Western Michigan (sub-net) 525 122 Central/Western Ohio (sub-net) 423 153

Columbus 176 42 Eastern New York (sub-net) 331 135

Syracuse 125 52 Indiana (sub-net) 104 34 Pennsylvania (sub-net) 99 24 Vermont (sub-net) 57 9

11


65

CM – Potential Visitors – Tier 3


Total 5,212 3,481 Greater New York City (sub-net) 865 715 Illinois 675 556 South Eastern Pennsylvania (subnet) 601 324

Philadelphia 292 204 New Jersey 493 457 Massachusetts (sub-net) 416 253

Boston, MA 264 116 Washington DC 314 289 Wisconsin (sub-net) 344 144

Milwaukee 88 55 Minnesota 337 141

Minneapolis 213 88 11

Tier 3 (Cont’d) Visitors Open (# ‘000) (# ‘000)

Connecticut 277 182 Southern Indiana (sub-net) 213 117

Indianapolis 78 67 Southern Ohio (sub-net) 165 99

Cincinnati, OH 106 58 Maryland (sub-net) 158 114

Baltimore, MD 141 96 New Hampshire 161 51 Delaware 85 35 Maine (sub-net) 83 20 Rhode Island 42 41 South Western Michigan (sub-net) 56 3

11


66

CM – Potential Visitors – Tier 4


Total 5,610 8,623 California 1,231 2,461 Florida 702 1,196 Texas 437 614 Washington state 333 113 Virginia 327 378 Georgia 229 398 Maryland 209 167 Tennessee 192 162 North Carolina 177 349 Kentucky 159 117 Arizona 156 452 Iowa 144 70 Colorado 136 284 Missouri 135 214 Oregon 122 139

11

Tier 4 (Cont’d) Visitors Open (# ‘000) (# ‘000)

Louisiana 107 114 Nevada 105 180 South Carolina 104 178 Alabama 76 154 Kansas 73 96 New Mexico 57 117 Mississippi 52 74 Alaska 50 16 Nebraska 47 52 Oklahoma 41 117 Utah 37 144 Arkansas 36 100 North Dakota 36 18 Montana 31 60 Wyoming 28 27 South Dakota 24 14 Idaho 20 48

11


67

CM – Potential Visitors by Origin State Visitors Open (# ‘000) (# ‘000)

New York 1,903 1,022 New York City 597 514

Michigan 1,615 274 California 1,231 2,461 Ohio 1,187 350 Pennsylvania 1,019 386

Philadelphia 292 204Pittsburgh 290 79

Florida 702 1,196 Tampa 128 144Miami 96 203Orlando 82 117

Illinois 675 556 Chicago 487 430

New Jersey 493 457 Minnesota 444 150 Texas 437 614 Massachusetts 354 234

Boston 264 116 Wisconsin 349 146

11

Visitors Open (# ‘000) (# ‘000)

Washington 333 113 Virginia 327 378 Indiana 318 152 Washington, D.C 314 289 Connecticut 277 182 Georgia 229 398

Atlanta 148 231Maryland 209 167 Tennessee 192 162 North Carolina 177 349 New Hampshire 161 51 Kentucky 159 117 Arizona 156 452 Iowa 144 70 Colorado 136 284 Missouri 135 214 Oregon 122 139 Louisiana 107 114 Nevada 105 180 South Carolina 104 178

11


68

CM – Potential Visitors by Origin State Visitors Open (# ‘000) (# ‘000)

Vermont 100 24 Delaware 85 35 Maine 83 20 Alabama 76 154 Kansas 73 96 West Virginia 62 33 New Mexico 57 117 Mississippi 52 74 Alaska 50 16 Nebraska 47 52 Rhode Island 42 41 Oklahoma 41 117 Utah 37 144 Arkansas 36 100 North Dakota 36 18 Montana 31 60 Wyoming 28 27 South Dakota 24 14 Idaho 20 48

11


69

Detroit

70

Short Trip – 1- 3 nights away from Home

Place Mention Region Mention Chicago, IL 34% Michigan 49%Toronto, ON 18% Ontario 26%Las Vegas, NV 15% New York 14%New York, NY 5% Florida 12%

Long-Haul Destination 4+ nights

Place Mention Region Mention Las Vegas, NV 19% Florida 42%Mexico 10% California 21%Disney World, FL 8% Hawaii 17%Orlando, FL 7% Michigan 8% Toronto, ON 3% Ontario 8%

Very LikelyDefinitely

9%

9%

8%

21%

16%

20%

25%

Buffalo

Rochester

Detroit

Total Unaided Recall of Destinations for a Short Trip (1-3 nights) Away from Home (up to five mentions)

Likelihood of Taking an Overnight Pleasure Trip to/within Ontario in Next Year

Detroit Michigan Travel Intentions

Total Unaided Recall of Destinations for a Longer Trip (4+ nights)Away from Home (up to five mentions)

30%

28%

Source: Ontario Ad & Brand Tracking, Fall 2007Summer Ad & Brand Tracking report – U.S. Near Markets

71

New York

72

Total Visitors (‘000)

2,0002,5003,0003,5004,0004,5005,0005,5006,0006,5007,0007,5008,0008,5009,0009,500

2002 2003 2004 2005 2006

#

Total CanadaVisitors FromNew York

Total OntarioVisitors FromNew York


As would be expected, Ontario continues to holds the lion’s share of Canadian visits from New York State residents. However, there has been a negative trend in Canadian visits since 2002, also negatively affecting visits to Ontario.

73

Total Overnight Visitors (‘000)

500600700800900

1,0001,1001,2001,3001,4001,5001,6001,7001,8001,9002,0002,100

2002 2003 2004 2005 2006

#

Total CanadaVisitors FromNew York



Overnight visits to Canada and also Ontario have declined slightly from 2002 through 2006.

74

Total Same Day Visitors (‘000)

2,0002,5003,0003,5004,0004,5005,0005,5006,0006,5007,0007,500

2002 2003 2004 2005 2006

#

Total Canada Visitors FromNew York



Same-day visits to Canada and also Ontario have declined sharply from 2002 through 2006.

75

Ontario Market Share Of Canadian TripsOntario holds an extremely large share of the same-day trips to Canada from New York State (96%) and a large proportion (75%) of overnight visits to Canada.

Ontario Market Share… 2002 2003 2004 2005 2006

From New York: % % % % %

Total 91 90 90 90 90

Overnight 75 73 76 75 75

Same Day 95 95 95 96 96


76

Potential to Visit Ontario from New York StateThere is a pool of 1M New Yorkers across the state, who have not visited Ontario but who are open to the idea of doing so if presented with the right opportunity.

1903

1022

New York

VisitorsOpen

Source: TAMS Conversion Model, 2006Base: New York Residents (000)

77

Main Purpose Of Trip - Leisure Travellers To Canada From New York

Pleasure is the main reason for New Yorkers to travel to Canada, whether they come by air or by auto. However, those who fly are more likely to be planning to visit friends or relatives than those who travel by car.

Air

14%

37%

49% Pleasure

VFR

Other

Auto

68%

19%

12%

Pleasure

VFR

Other

Source: CTC Air and Auto Leisure Market For Canada, 2007

78

Average ExpenditureAir travellers spend more per person, and more per night, and stay a day longer, on average, than their counterparts who travel by car.

Leisure Travellers To Canada From New York

Air Auto

Per person per trip $693 $291

Per person per night $165 $92

Average # of nights 4.2 3.0


79

Activities on TripConsistent with their purpose for travelling, New Yorkers arriving by air are more likely to have visited friends or relatives than those arriving by car. Air travellers are also more likely to have visited a museum or art gallery. While those driving to Canada are much more likely to have participated in sports or outdoor activities and to have visited a casino.

Leisure Travellers To Canada From New York In 2006

Air Auto % % Go shopping 67 58 Visit friends or relatives 51 33 Go sightseeing 43 42 Visit a museum or art gallery 35 15 Go to a bar or nightclub 27 20 Visit a historic site 25 18 Participate in sports or outdoor activities 16 34 Visit a national or provincial nature park 15 10 Attend a cultural performance 10 15 Attend a festival or fair 8 9 Visit a zoo, aquarium or botanical garden 8 6 Go to a casino 5 10 Attend a sports event 3 5


80

Destination Of 2006 Overseas Outbound Air Tourists From New York (All Purposes)

Ontario could be faced with competition from the Caribbean and Europe.

28%

6%

6%

2%

42%

7%

4%

13%

2%

0%

4%

1%

2%

Europe (Net)

—UK

—Italy

—France

Caribbean

South America

Cental America

Asia (Net)

—China

—Taiwan

—Japan

—South Korea

Oceania


81

Characteristics Of 2006 Overseas Outbound Air Tourists From New York (All Purposes)

Dining and shopping, top the list of activities of overseas air travellers from New York.

Top 10 Activities

Dining in restaurants 80%

Shopping 70%

Visit historical places 41%

Visit small towns 36%

Sightseeing in cities 35%

Touring countryside 30%

Nightclubs/dancing 29%

Cultural Heritage sites 27%

Art gallery/museum 20%

Guided tours 14% 11


82

Massachusetts

83


While Ontario still gets a relatively small share of Canadian visits from residents of Massachusetts, it is doing slightly better in this regard in 2006 (27%) compared to 2002 (25%).

050

100150200250300350400450500550600650700750800850900950

1,000

2002 2003 2004 2005 2006

#

Total CanadaVisitors FromMassachusetts

Total OntarioVisitors FromMassachusetts


84


Ontario is not generating a large share of overnight visits from Massachusetts residents (23%).

050

100150200250300350400450500550600650700750800

2002 2003 2004 2005 2006

#

Total CanadaVisitors FromMassachusetts



85


However, Ontario is getting a large share of same-day visitors from Massachusetts to Canada.

0

25

50

75

100

125

150

175

200

225

250

2002 2003 2004 2005 2006

#

Total Canada Visitors FromMassachusetts



86

Ontario Market Share Of Canadian Trips (‘000)

Ontario holds a large share of the same-day trips to Canada from Massachusetts (73%) and a much smaller proportion (30%) of overnight visits to Canada.


From Massachusetts: % % % % %

Total 34 34 36 36 37

Overnight 25 25 26 26 30

Same Day 60 62 71 72 73


87

Potential to Visit Ontario from MassachusettsThere is a pool of 234,000 Massachusetts residents across the state who have not visited Ontario but who are open to the idea of doing so if presented with the right opportunity. While they are concentrated in a relatively small geographic area, numerically they are only a fourth of the size of the equivalent population scattered across New York State.

354

234

Massachusetts

VisitorsOpen

Source: TAMS Conversion Model, 2006 Base: Massachusetts Residents (000)

88

Main Purpose Of Trip - Leisure Travellers To Canada From Massachusetts

Three out of five Massachusetts residents coming to Canada by car, are taking a pleasure trip.

Auto

60%29%

10%

PleasureVFR

Other

Source: CTC Auto Leisure Market For Canada, 2007

89

Average ExpenditureRegardless of the mode of transportation, Massachusetts residents tend to spend about $400 per person while in Canada.

Leisure Travellers To Canada From Massachusetts

All Modes Auto



Average # of nights NA 3.7


90

Activities On TripIn contrast to New York State residents whose activities differed somewhat by mode of transportation, those travelling to Canada from Massachusetts by car are not substantially different from those using other modes of transportation.

Leisure Travellers To Canada From Massachusetts In 2006

All Modes Auto % % Go shopping 62 65 Go sightseeing 57 59 Visit a historic site 36 36 Visit friends or relatives 34 43 Visit a museum or art gallery 28 26 Go to a bar or nightclub 26 30 Visit a national or provincial nature park 25 24 Attend a cultural performance 22 13 Participate in sports or outdoor activities 21 25 Visit a zoo, aquarium or botanical garden 13 11 Go to a casino 12 7 Attend a festival or fair 11 12 Attend a sports event 7 9


91

Destination Of 2006 Overseas Outbound Air Tourists From Massachusetts (All Purposes)

In contrast to New York State residents who travelled overseas by air, those from Massachusetts are much more likely to have flown to Europe than to the Caribbean.

51%

19%

5%

3%

18%

4%

4%

16%

2%

1%

3%

1%

3%

Europe (Net)

—UK

—Italy

—France

Caribbean

South America

Cental America

Asia (Net)

—China

—Taiwan

—Japan

—South Korea

Oceania


92

Characteristics of 2006 Overseas Outbound Air Tourists from Massachusetts (All Purposes)

Dining and shopping top the list of activities of overseas air travellers from Massachusetts, as they do for New York State residents.

Top 10 Activities


Shopping 68%





Cultural heritage sites 30%

Water sports/sunbathing 28%


Nightclubs/dancing 23% 11


93

Illinois

94


While visits to Canada from Illinois fell from 2002 through 2006, Ontario continued to get a reasonable share of Canadian visits from residents of Illinois. In 2006 Ontario’s share stood at 41%.

100150200250300350400450500550600650700750800

2002 2003 2004 2005 2006

#

Total CanadaVisitors FromIllinois

Total OntarioVisitors FromIllinois


95


The decline in visitors to Ontario from Illinois affected overnight and same-day travel equally. The proportion of overnight visitors captured by Ontario in 2006 stood at 41%.

050

100150200250300350400450500550600

2002 2003 2004 2005 2006

#

Total CanadaVisitors FromIllinois



96


The decline in visitors to Ontario from Illinois affected overnight and same-day travel equally. The proportion of same-day visitors captured by Ontario in 2006 stood at 42%.

0

25

50

75

100

125

150

175

200

2002 2003 2004 2005 2006

#

Total Canada Visitors FromIlinois



97

Ontario Market Share Of Canadian TripsOntario holds a large share of the same-day trips to Canada from Illinois (74%), as it did for Massachusetts (73%). However, in contrast to the situation with residents of Massachusetts, Ontario also holds a large share of the overnight visits (69%) of Illinois residents.


From Illinois: % % % % %

Total 70 74 76 73 70

Overnight 67 71 73 73 69

Same Day 80 83 84 73 74


98

Potential to Visit Ontario from IllinoisThere is a pool of 556,000 Illinois residents, across the state, who have not visited Ontario but who are open to the idea of doing so, if presented with the right opportunity.

675

556

Illinois

VisitorsOpen

Source: TAMS Conversion Model, 2006 Base: Illinois Residents (000)

99

Main Purpose Of Trip - Leisure Travellers To Canada From Illinois

Pleasure is the main reason for residents of Illinois to travel to Canada whether they come by air or by auto. However, as noted among New Yorkers visiting Canada, those who fly are more likely to be planning to visit friends or relatives than those who travel by car.

Air

18%

36%

47% Pleasure

VFR

Other

Auto

73%

21%

6%

Pleasure

VFR

Other


100

Average ExpenditureThose flying to Canada tend to spend more per person, than those arriving by auto, and they also stay one extra night, on average.

Leisure Travellers To Canada From Florida

Air Auto





101

Activities On TripIn contrast to New York State residents, whose activities differed somewhat by mode of transportation, those travelling to Canada from Illinois by car are only marginally different from those using other modes of transportation.

Leisure Travellers To Canada From Illinois In 2006

Air Auto % % Go shopping 67 56 Go sightseeing 45 61 Visit friends or relatives 44 37 Visit a historic site 32 32 Visit a national or provincial nature park 31 32 Participate in sports or outdoor activities 28 32 Go to a bar or nightclub 26 17 Visit a museum or art gallery 25 29 Visit a zoo, aquarium or botanical garden 15 10 Attend a cultural performance 10 9


102

Destination Of 2006 Overseas Outbound Air Tourists From Illinois (All Purposes)

In contrast to New York State residents who travelled overseas by air, those from Illinois are much more likely to have flown to Europe than to the Caribbean.

50%

8%

7%

7%

14%

4%

2%

22%

3%

1%

5%

2%

2%

Europe (Net)

—UK

—Italy

—France

Caribbean

South America

Cental America

Asia (Net)

—China

—Taiwan

—Japan

—South Korea

Oceania


103

Characteristics of 2006 Overseas Outbound Air Tourists from Illinois (All Purposes)

Dining and shopping, not surprisingly, top the list of activities of overseas air travellers from Illinois, as they do for New York State residents. However, Illinois travellers are slightly more likely to visit historical places than their counterparts from New York State or Massachusetts.

Top 10 Activities


Shopping 75%








Guided tours 16% 11


104

New Jersey/Connecticut

105


While visits to Canada from New Jersey and Connecticut fell from 2002 through 2006, Ontario continued to get a reasonable share of Canadian visits from residents of both states. In 2006, Ontario’s share of New Jersey visitors stood at 51% and of Connecticut visitors at 44%.

0

100

200

300

400

500

600

2002 2003 2004 2005 2006

#

Total CanadaVisitors FromNew Jersey

Total CanadaVisitors FromConnecticut

Total OntarioVisitors FromNew Jersey

Total OntarioVisitors FromConnecticut


106


While total overnight visits to Canada declined slightly between 2002 and 2006 for residents of both states, the number of overnight visits to Ontario from these states remained relatively flat between 2002 and 2006.

050

100150200250300350400450500550600

2002 2003 2004 2005 2006

#

Total CanadaVisitors FromNew Jersey





107


While same-day visits to Canada declined for residents of New Jersey and Connecticut, Ontario’s share of same-day visitors from these states did not decline substantially between 2002 and 2006.

0

25

50

75

100

125

150

175

200

2002 2003 2004 2005 2006

#

Total Canada Visitors FromNew Jersey





108

Ontario Market Share of Canadian TripsOntario holds a large share of the same-day trips to Canada from New Jersey (62%), as it does for Illinois (74%) and Massachusetts (73%). However, Ontario only gets half (49%) of overnight visits from New Jersey travellers. Ontario captures a large share of the same-day trips from Connecticut (61%), but only gets 38 per cent of overnight visits from Connecticut travellers.

Ontario Market Share 2002 2003 2004 2005 2006 From New Jersey: % % % % %

Total 52 46 53 54 51

Overnight 49 45 53 53 49

Same Day 65 50 50 62 62

From Connecticut: % % % % %

Total 39 40 38 47 44

Overnight 33 35 32 39 38

Same Day 53 49 56 71 61


109

Potential to Visit Ontario from New Jersey and Connecticut

There is a pool of 457,000 New Jersey residents and 182,000 Connecticut residents who have not visited Ontario but who are open to the idea of doing so if presented with the right opportunity.

493

277

457

182

New Jersey Connecticut

VisitorsOpen

Source: TAMS Conversion Model, 2006 Base: New Jersey and Connecticut Residents (000)

110

Main Purpose of Trip - Leisure Travellers to Canada from New Jersey/Connecticut

Pleasure is the main reason for residents of New Jersey and Connecticut to travel to Canada whether they come by air or by auto. Unlike New Yorkers and Illinois residents visiting Canada, those who fly are no more likely to be planning to visit friends or relatives than those who travel by car.

Air

13%

26%61% Pleasure

VFR

Other

Auto

67%

26%

7%

Pleasure

VFR

Other


111

Average Expenditure

Those flying to Canada tend to spend more per person, than those arriving by auto. Both groups tend to stay four or five days on average.

Leisure Travellers To Canada From New Jersey/Connecticut

Air Auto





112

Activities on TripIn contrast to New York State residents, whose activities differed somewhat by mode of transportation, those travelling to Canada from New Jersey or Connecticut by car are only marginally different from those arriving by air.

Leisure Travellers To Canada From New Jersey/Connecticut In 2006

Air Auto % % Go shopping 63 68 Go sightseeing 47 62 Visit friends or relatives 38 37 Participate in sports or outdoor activities 33 37 Visit a museum or art gallery 29 20 Visit a historic site 28 36 Visit a national or provincial nature park 27 26 Go to a bar or nightclub 26 20 Visit a zoo, aquarium or botanical garden 15 10 Go to a casino 10 6 Attend a sports event 9 8 Attend a festival or fair 7 12 Visit a theme or amusement park 6 5 Attend a cultural performance 5 11 Source: CTC Air and Auto Leisure Market For Canada, 2007

113

Destination of 2006 Overseas Outbound Air Tourists from New Jersey (All Purposes)

In contrast to New York State residents who travelled overseas by air, those from New Jersey and Connecticut are as likely to have flown to Europe as to the Caribbean. Asia also figures more prominently as a destination among New Jersey and Connecticut residents compared to those living in New York State.

29%

9%

5%

2%

27%

11%

4%

20%

3%

1%

3%

2%

2%

Europe (Net)

—UK

—Italy

—France

Caribbean

South America

Central America

Asia (Net)

—China

—Taiwan

—Japan

—South Korea

Oceania


114

Characteristics of 2006 Overseas Outbound Air Tourists from New Jersey (All Purposes)

Dining and shopping top the list of activities of overseas air travellers from New Jersey as they do for New York State residents.

Top 10 Activities


Shopping 75%








Guided tours 18% 11


115

Florida

116


Total visits to Canada were slightly lower in 2006 compared to 2002, and this same pattern is reflected in the visits to Ontario. In 2006, Ontario captured 46% of Canada’s Florida visitors.

050

100150200250300350400450500550600650700

2002 2003 2004 2005 2006

#

Total CanadaVisitors FromFlorida

Total OntarioVisitors FromFlorida


117


Total overnight visits to Canada declined slightly between 2002 and 2006, and the number of overnight visits to Ontario followed this pattern.

0

50

100

150

200

250

300

350

400

450

500

2002 2003 2004 2005 2006

#

Total CanadaVisitors FromFlorida



118


Total same-day visits to Canada declined slightly between 2002 and 2006, and the number of same-day visits to Ontario declined more sharply.

0

25

50

75

100

125

150

175

200

2002 2003 2004 2005 2006

#

Total Canada Visitors FromFlorida



119

Ontario Market Share of Canadian Trips

Ontario holds a reasonably large share of the same-day trips to Canada from Florida (54%), slightly less than it holds among same-day visitors from New Jersey (62%) and Connecticut (61%). In terms of overnight visits, Ontario captures 42%, comparable to its share of overnight visitors from New Jersey (49%) and Connecticut (38%).


From Florida: % % % % %

Total 52 48 47 47 46

Overnight 45 37 40 45 42

Same Day 71 78 63 53 54


120

Potential to Visit Ontario from Florida

There is a pool of 1.2M Florida residents who have not visited Ontario but who are open to the idea of doing so, if presented with the right opportunity.

702

1196

Florida

VisitorsOpen

Source: TAMS Conversion Model, 2006 Base: Florida Residents (000)

121

Main Purpose of Trip - Leisure Travellers to Canada from Florida

Pleasure is the main reason for residents of Florida to travel to Canada, whether they come by air or by auto. Like New York State and Illinois residents visiting Canada, those who arrive by air are more likely to be planning to visit friends or relatives than those who travel by car.

Air

11%

43%

46% Pleasure

VFR

Other

Auto

63%30%

7%

PleasureVFR

Other


122

Average Expenditure

Those flying to Canada tend to spend more per person, than those arriving by auto, and they also stay one extra night, on average.

Leisure Travellers To Canada From Florida

Air Auto





123

Activities on Trip

In addition to being more likely to visit friends or relatives, those arriving by air are also more likely to visit a zoo, aquarium or botanical garden, and attend a festival or fair, than those arriving by car.

Leisure Travellers To Canada From Florida In 2006

Air Auto % % Go shopping 70 68 Go sightseeing 62 68 Visit friends or relatives 59 44 Visit a historic site 42 36 Visit a national or provincial nature park 33 26 Visit a museum or art gallery 23 23 Go to a bar or nightclub 21 14 Visit a zoo, aquarium or botanical garden 20 7 Attend a festival or fair 14 7 Attend a cultural performance 10 11 Attend a sports event 9 7 Go to a casino 6 9


124

Destination of 2006 Overseas Outbound Air Tourists from Florida (All Purposes)

Ontario could be faced with competition from Europe, the Caribbean and South America.

42%

4%

9%

10%

18%

22%

6%

8%

1%

0%

1%

0%

1%

Europe (Net)

—UK

—Italy

—France

Caribbean

South America

Cental America

Asia (Net)

—China

—Taiwan

—Japan

—South Korea

Oceania


125

Characteristics of 2006 Overseas Outbound Air Tourists from Florida (All Purposes)

Those travelling overseas from Florida were likely to have dined in restaurants and shopped. Like residents of Illinois, they are relatively more likely to have visited historical places, compared to residents of New York State, Massachusetts, New Jersey or Connecticut.

Top 10 Activities


Shopping 65%








Guided tours 19% 11


126

Texas

127


The proportions of visitors from Texas to Canada and to Ontario have both decreased slightly since 2002. Ontario captured 44% of all Texas visitors to Canada in 2006.

050

100150200250300350400450500550600

2002 2003 2004 2005 2006

#

Total CanadaVisitors FromTexas

Total OntarioVisitors FromTexas


128


The number of overnight visitors from Texas to Ontario was stable between 2002 and 2006. In 2006, the share was 39%.

0

50

100

150

200

250

300

350

400

450

500

2002 2003 2004 2005 2006

#

Total CanadaVisitors FromTexas



129


Reflecting the same trends noted for many other U.S. states, there has been a decline in same-day visits to both Canada and Ontario between 2002 and 2006.

0

25

50

75

100

125

150

175

200

2002 2003 2004 2005 2006

#

Total Canada Visitors FromTexas



130

Ontario Market Share of Canadian TripsOntario holds a reasonably large share of the same-day trips to Canada from Texas (64%), not far below the proportion of same-day trips from Illinois (74%) and Massachusetts (73%). In terms of overnight visits, Ontario captures 40%, comparable to its share of overnight visitors from New Jersey (49%) and Connecticut (38%).


From Texas: % % % % %

Total 45 47 47 49 44

Overnight 38 40 40 46 40

Same Day 64 70 67 62 64


131

Potential to Visit Ontario from TexasAs noted for Florida, Texas holds a substantial population (614,000) who have not visited Ontario but who would be open to the idea of travelling to Ontario if they were presented with the appropriate package.

437

614

Texas

VisitorsOpen

Source: TAMS Conversion Model, 2006Base: Texas Residents (000)

132

Main Purpose of Trip - Leisure Travellers to Canada from Texas

Pleasure is the main reason for residents of Texas to travel to Canada, whether they come by air or by auto. Like New York State, Illinois and Florida residents visiting Canada, those who arrive by air are more likely to be planning to visit friends or relatives than those who travel by car.

Air

20%

31%49%

Pleasure

VFR

Other

Auto

68%22%

11%

PleasureVFR

Other


133

Average ExpenditureThose flying to Canada tend to spend more per person than those arriving by auto, which is consistent with those arriving from other states. However, air travellers do not stay longer on average than those arriving by car.

Leisure Travellers To Canada From Texas

Air Auto





134

Activities on TripThose arriving by car are more likely to go shopping and sightseeing and visit an historic site, than those arriving by air.

Leisure Travellers To Canada From Texas In 2006

Air Auto % % Go shopping 62 79 Go sightseeing 58 82 Visit friends or relatives 46 36 Visit a national or provincial nature park 43 45 Visit a historic site 33 49 Visit a museum or art gallery 27 33 Participate in sports or outdoor activities 23 18 Go to a bar or nightclub 22 20 Go to a casino 13 6 Visit a zoo, aquarium or botanical garden 13 14 Attend a cultural performance 11 8 Attend a sports event 7 1 Attend a festival or fair 3 10


135

Destination of 2006 Overseas Outbound Air Tourists from Texas (All Purposes)

Overseas travellers from Texas are likely to have gone to Europe and to Asia, suggesting that these destinations could be competitive with Ontario.

40%

4%

3%

9%

7%

12%

9%

21%

2%

1%

3%

1%

1%

Europe (Net)

—UK

—Italy

—France

Caribbean

South America

Cental America

Asia (Net)

—China

—Taiwan

—Japan

—South Korea

Oceania


136

Characteristics of 2006 Overseas Outbound Air Tourists from Texas (All Purposes)

Texans travelling overseas participated in the same pattern of activities as residents of other U.S. states.

Top 10 Activities


Shopping 80%








Guided tours 17% 11


137

California

138


Not surprisingly given the distance, Ontario captured only 31% of visits to Canada by Californians.

0100200300400500600700800900

1,0001,1001,200

2002 2003 2004 2005 2006

#

Total CanadaVisitors FromCalifornia

Total OntarioVisitors FromCalifornia


139


The pattern of overnight visitors to Ontario follows the pattern of visits to Canada in general. Ontario’s share is low (29%).

150200250300350400450500550600650700750800850900950

1,000

2002 2003 2004 2005 2006

#

Total CanadaVisitors FromCalifornia



140


The number of same-day visitors to Ontario declined between 2002 and 2006, although not as sharply as to Canada as a whole.

0255075

100125150175200225250275300

2002 2003 2004 2005 2006

#

Total Canada Visitors FromCalifornia



141

Ontario Market Share of Canadian TripsOntario holds a reasonably large share of the same-day trips to Canada from California (43%), but considerably below the proportion of same-day trips from Illinois (74%) and Massachusetts (73%). In terms of overnight visits, Ontario captures 29%, not much lower than its share of overnight visitors from New Jersey (49%) and Connecticut (38%).


From California: % % % % %

Total 27 25 27 26 31

Overnight 23 23 25 24 29

Same Day 41 34 35 34 43


142

Potential to Visit Ontario from CaliforniaAs noted for Florida and Texas, California holds a substantial population 2.5M who have not visited Ontario but who would be open to the idea of travelling to Ontario if they were presented with the appropriate package.

1231

2461

California

VisitorsOpen

Source: TAMS Conversion Model, 2006Base: California Residents (000)

143

Main Purpose of Trip - Leisure Travellers to Canada from California

Pleasure is the main reason for residents of California to travel to Canada, whether they come by air or by auto. Like New York State, Illinois and Florida residents visiting Canada, those who arrive by air are more likely to be planning to visit friends or relatives than those who travel by car.

Air

11%

41% 49% PleasureVFR

Other

Auto

66%27%

6%

PleasureVFR

Other


144

Average ExpenditureThose flying to Canada tend to spend more per person\, than those arriving by auto, which is consistent with those arriving from other states. However, air travellers do not stay longer on average than those arriving by car.

Leisure Travellers To Canada From California

Air Auto





145

Activities on TripThose arriving from California by air are more likely to visit friends or relatives, but otherwise participate in the same range of activities as those arriving by auto.

Leisure Travellers To Canada From California In 2006

Air Auto % % Go shopping 73 71 Go sightseeing 62 70 Visit friends or relatives 60 46 Visit a historic site 38 39 Visit a national or provincial nature park 32 35 Participate in sports or outdoor activities 32 44 Visit a museum or art gallery 28 28 Visit a zoo, aquarium or botanical garden 20 22 Go to a bar or nightclub 20 25 Attend a festival or fair 11 7 Go to a casino 10 5 Attend a cultural performance 8 8 Visit a theme or amusement park 8 8 Attend a sports event 5 3


146

Destination of 2006 Overseas Outbound Air Tourists From California (All Purposes)

Overseas travellers from California are likely to have gone to Europe and to Asia, suggesting that these destinations could be competitive with Ontario.

37%

10%

5%

4%

4%

4%

6%

41%

8%

8%

7%

4%

5%

Europe (Net)

—UK

—Italy

—France

Caribbean

South America

Cental America

Asia (Net)

—China

—Taiwan

—Japan

—South Korea

Oceania


147

Characteristics of 2006 Overseas Outbound Air Tourists from California (All Purposes)

Not surprisingly, those travelling overseas from California were likely to have dined in restaurants and shopped. Like residents of Illinois, they are relatively more likely to have visited historical places, compared to residents of New York State, Massachusetts, New Jersey or Connecticut.

Top 10 Activities


Shopping 78%








Guided tours 16% 11


148

Overseas Markets

149

1,1091,150

1,080879

1,072

20062005200420032002

Europe

658619586

395583

20062005200420032002

Asia

1141071038693

20062005200420032002

Caribbean

Central and Other North America (mainly Mexico)

10990877897

20062005200420032002

102100674765

20062005200420032002

South America

6972915477

20062005200420032002

Australia Region

3231352026

20062005200420032002

Africa

# in '000Source: Statistics Canada ITS, 2002-2006

• Solid growth is noted for South America and Asia based on 2002 to 2006 data

The World – Trends in Visitation to Ontario

150

Europe

151

Europe – Trends in Visitation to Ontario

422454429

344406

20062005200420032002

UK5761595461

20062005200420032002

Netherlands

131143141112145

20062005200420032002

Germany

4140423746

20062005200420032002

Switzerland

7276624065

20062005200420032002

Italy

3034282029

20062005200420032002

Spain

130123118107135

20062005200420032002

France

3836342221

20062005200420032002

Ireland

# in '000

1,1091,150

1,080879

1,072

20062005200420032002

Total Europe


152

The U.K.

153

Total VisitorsWhile the number of long-haul overseas trips made by U.K. residents increased considerably between 2002 and 2006, Canada’s and Ontario’s share decreased.This is very alarming given that the U.K. is Ontario’s largest source market in Europe.

0100200300400500600700800900

2002 2003 2004 2005 2006

#



2002 2003 2004 2005 2006

Total Long-Haul Outbound* 5,733 5,895 6,555 7,145 10,555

Canadian Market Share 12.6 11.7 12.2 12.4 8.0

Ontario Market Share 7.0 6.0 6.5 6.4 4.2

Source: Statistics Canada ITS, 2002-2006 *CTC European Consumer and Travel Trade Research, February 2008

154

All Reasons for Travel to Canada - Among Past 3 Year Travellers (All Mentions)

55%68%

36%39%

48%27%

34%32%

15%24%

14%25%

34%24%

29%11%13%

4%6%5%6%8%

6%

To see new placesTo enjoy the natural scenery

To relax, unwind, and decompressTo experience local culture

To visit friends and relativesTo go shopping

To visit historic sites, museums, or galleriesTo interact with the local peopleFor entertainment and nightlife

To be together as a familyLow rates, good ideals, and discounts

To realize a long term dreamTo visit protected areas - nature reserve, parks

To experience big cities in another countryTo see and watch wildlife

To attend festivals and/or eventsTo participate in outdoor activities

HoneymoonA trip that combined business with pleasureTo visit a spa, health centre, or hot springs

To view aboriginal sites and eventsTo go downhill skiing or snowboarding

Other ReasonsSource: CTC European Consumer and Travel Trade Research, February 2008

The top two reasons for coming to Canada for U.K. residents are to “Enjoy the natural scenery” and “to see new places”

155

Long-Haul Destination PriorityCanada ranks third among residents of the U.K., after the U.S. and Australia.

Rank

1. United States

2. Australia

3. Canada

4. Caribbean

5. New Zealand

Source: CTC European Consumer and Travel Trade Research, February 2008

156

Canada’s Priority Ranking Key Segment

Canada’s Priority Ranking

Segment:

Overall 3rd

Repeat travellers (travelled to Canada in past 3 years) 1st

Friends and relatives in Canada 2nd 11

While Canada ranks below the U.S. and Australia, overall, it is the number one destination for those who have travelled to Canada in the past 3 years. While undoubtedly some travel is driven by VFR, this top ranking also suggests that Canada has generally met, or exceeded expectations.


157

Interest in Canada’s ActivitiesConsistent with reasons for travelling to Canada, activities of interest among prospective travellers are “rivers and waterfalls”, “mountains”, “places of historical interest” and “visiting small towns”.With the exception of mountains, Ontario has the potential to deliver on the other nine activities.

Prospective Markets Ideal Trip To Canada (Next 2 Years)

Top 10 Activities (In Order)

1. Viewing rivers or waterfalls

2. Viewing mountains

3. Visiting places of historical interest

4. Visiting small towns

5. Observing wildlife in their natural environment

6. Visiting wilderness areas

7. Getting to know the local inhabitants

8. Taking city tours

9. Seeing beautiful beaches and coastlines

10. Visiting world heritage sites 11


158

Barriers to Visiting Canada

Top 16 Barriers To Visiting Canada 1. Concerns about the cost 2. Insufficient information or knowledge about what deals are available 3. Insufficient information or knowledge about where to go in Canada 4. Insufficient information or knowledge about types of accommodation available 5. Insufficient information or knowledge about where to get information on the internet 6. Insufficient information or knowledge about what there is to do besides seeing nature 7. Concerns about the weather 8. Concerns about distance between accommodation and nature based activities (8, 9, 10,

11 tied) 9. Insufficient information or knowledge about cultural activities available (8, 9, 10, 11 tied) 10. Concerns about safety in Canadian nature (8, 9, 10, 11 tied) 11. Concerns about country too vast for a one or two week holiday (8, 9, 10, 11 tied) 12. Insufficient information or knowledge about restaurants bars and clubs 13. Concerns about lack of convenient flights to Canada 14. Insufficient information or knowledge about nightlife and entertainment options 15. Concerns about gas emissions due to air travel 16. Concerns about not being able to speak the language

Besides cost, lack of information is a major barrier to visiting Canada.


159

Destinations Visited in Past 3 Years

57%53%

47%30%29%

24%19%

17%17%16%15%14%

12%10%10%

Western Europe (Net)North America (Net)

United StatesAsia (Net)

SpainFrance

The Pacific (Net)Middle East (Net)

Eastern Europe (Net)Italy

CaribbeanAustraliaCanada

GermanySouth/Central Asia


Interestingly, residents of the U.K. are as likely to have visited North America (53%) as Western Europe (57%) in the past 3 years. The incidence of visiting Canada, however, is relatively low (12%).

160

Under-Performing Countries for UK Long-Haul OutboundThe report: “Identifying Ontario’s Opportunities in the Overseas Travel Market” suggests that Ontario is underperforming in terms of garnering long-haul trips from the U.K.

4,176,211

866,299

732,585

421,847

169,627

488,166

216,476

75,397

31,239

14,506

58,612

110,412

11,337,144

1,670,431

1,464,655

816,227

857,047

630,039

876,308

317,859

220,523

111,635

154,036

180,637

US

Canada

Australia

ONTARIO

Brazil

Singapore

Japan

Korea

Taiwan

New Zealand

Trinidad & Tobago

Indonesia

Actual VisitsPredicted Visits

Source: Ministry of Tourism – Ontario Travel Opportunities, October 2008

161

Over-Performing Countries for UK Long-Haul OutboundOn the other hand, countries such as Jamaica, Malaysia, Dominican Republic, Barbados and the Philippines are overperforming, capturing a greater share of long-haul U.K. travellers than expected.

178,429

252,035

239,328

211,523

334,298

275,143

431,000

734,240

745,525

1,912,700

53,561

121,571

103,992

55,439

140,138

39,649

118,228

253,117

180,447

12,640

Jamaica

Malaysia

Dominican Republic

Barbados

Philippines

Oman

Hong Kong

India

Thailand

Nepal



162

U.K. Canadian Visitor Expenditure Profile

Average # of nights on trip 18

Average # of nights in Canada 13

Average expenditure per trip (Pounds) 3,300

Exchange rate (Nov. 3, 2008) 1.91632

Average expenditure per international trip (Cdn.) $6,322.78

Average expenditure per night (Cdn.) $351.27

Average expenditure per trip in Canada (Cdn.) $4,566.51 11


163

France

164

Total Visitors

050

100150200250300350400

2002 2003 2004 2005 2006

#



2002 2003 2004 2005 2006

Total Outbound* 4,637 4,526 5,559 5,810 4,953



Source: Statistics Canada ITS, 2002-2006 *CTC European Consumer and Travel Trade Research, February 2008

While the number of long-haul overseas trips increased marginally between 2002 and 2006, and Canada’s share increased slightly, Ontario’s share did not increase.

165


78%53%

44%61%

33%35%35%

32%44%

24%38%

25%28%

19%7%

15%11%

16%8%

4%3%5%5%

To enjoy the natural sceneryTo see new places

To experience local cultureTo interact with the local people

To relax, unwind, and decompressTo visit historic sites, museums, or galleries

To realize a long term dreamTo visit friends and relatives

To visiting protected areasTo view aboriginal sites and events

To see and watch wildlifeTo go shopping

To experience big cities in another countryTo be together as a family

Low rates, good deals, and discountsTo participate in outdoor activities

For entertainment and nightlifeTo attend festivals and/or events

A trip that combined business with pleasureHoneymoon

To visit a spa, health centre, or hot springsTo go downhill skiing or snowboarding

Other reasons


While travellers from France came to enjoy natural scenery and to see new places, as did their counterparts from the U.K., those from France were more likely to have interacted with the local people.

166

Long-Haul Destination PriorityUndoubtedly aided by the francophone culture of Quebec, Canada ranks first as a long-haul destination among residents of France.

Rank

1. Canada

2. United States

3. Caribbean

4. Australia

5. Mexico


167



Segment:

Overall 1st

Repeat travellers (travelled to Canada in past 3 years) 2nd


Canada ranks first overall, and second for repeat travellers and those visiting friends and relatives.


168

Interest in Canada’s ActivitiesConsistent with reasons for travelling to Canada, activities of interest among prospective travellers are “rivers and waterfalls”, “getting to know local establishments”, “experiencing French Canadian culture and cuisine” and “visiting small towns”.




2. Getting to know the local establishments

3. Experiencing French Canadian culture and cuisine


5. Taking nature tours





10. Viewing mountains 11


169


Top 16 Barriers To Visiting Canada (Among Those Not Likely To Visit Canada In The Next 12 Months)

1. Concerns about the cost 2. Insufficient information or knowledge about where to go in Canada 3. Concerns about the weather 4. Insufficient information or knowledge about types of accommodation available 5. Insufficient information or knowledge about what deals are available 6. Concerns about distance between accommodation and nature based activities 7. Insufficient information or knowledge about what there is to do besides seeing nature 8. Insufficient information or knowledge about where to get information on the internet 9. Concerns about safety in Canadian nature 10. Concerns about country too vast for a one or two week holiday (10, 11 tied) 11. Concerns about lack of convenient flights to Canada (10, 11 tied) 11. Concerns about not being able to speak the language 12. Insufficient information or knowledge about cultural activities available 14. Insufficient information or knowledge about nightlife and entertainment options 15. Insufficient information or knowledge about restaurants bars and clubs 16. Concerns about greenhouse gas emissions due to air travel

Apart from cost, lack of information is a major barrier to visiting Canada.


170


45%

33%

30%

28%

20%

19%

19%

16%

15%

13%

12%

12%

11%

11%

Western Europe (Net)

Africa (Net)

Asia (Net)

North America (Net)

Caribbean

United States

Spain

South/Central America

Italy

Morocco

UK

Canada

Tunisia

Turkey


Not surprisingly given the common language, one in three travellers from France have visited Africa in the past 3 years, about the same proportion that has visited Asia.

171

Size of the Potential Market to Canada (Next 2 Years)4.5M French tourists are planning to visit Canada in the next 2 years. Despite their interest in French Canadian culture, it will be shown later that Ontario has the potential to capture a substantial share of this group.

Base: Long-haul pleasure travellers (n=1,537)

Size Of Potential Market To Canada

Total potential long-haul pleasure travellers (aged 18 plus) 15,177,000

Target Market For Canada:

Very/somewhat interested in visiting Canada in the next 2 years 76%

Size of the target market 11,535,000

Immediate Market For Canada:

Will definitely/very likely visit Canada in the next 2 years 30%

Size of the immediate market 4,553,000 11

Source: Global Tourism Watch France Report, 2007

172

Likelihood of Visiting Canada in the Next 2 Years

10%

17%

35%

28%

10%

French travellers planning to visit Canada will likely be spending four or more nights in Canada.

Likelihood Of Taking A Trip Of Four Or More Nights (n=1,537)

Likelihood Of Taking A Trip Of One To Three Nights (n=1,537)

Definitely

Very Likely

Somewhat likely

Not very likely

Not at all likely

5%

14%

27%

32%

22%

Definitely

Very Likely

Somewhat likely

Not very likely

Not at all likely

Overall, 30% are definitely or

very likely to visit Canada in the next 2 years

Base: Long-haul pleasure travellersNote: Including trips to other countries (e.g., the US) that involve a stay of one to three nights in Canada.


173

Market Potential for the Provinces

BC MB ON ATL NORTH

Size of immediate market to Canada 4,553,000

Likely to visit province 67% 21% 84% 50% 30%

Size of immediate market for the provinces 3,051,000

956,000 3,825,000 2,277,000 1,366,000

11

Next to Quebec, Ontario stands to capture a large share of French travellers to Canada.

Base: Long-haul pleasure travellers (n=1,537)Note: Provincial estimates are not additive since travellers may visit more than one province on a single trip.


174

Canadian Destination Most Likely to Visit

95%

84%

67%

50%

30%

27%

26%

56%

31%

6%

3%

3%

1%

1%

Quebec

Ontario

British Columbia

Atlantic Canada

Northern Canada

Alberta

Manitoba/Saskatchewan

Regions Likely To Visit

Region MOST Likely ToVisit

Base: Those likely to visit Canadian in the next 2 years and/or those who are considering have decided to visit or have booked a trip there (n=1,011).

Source: Global Tourism Watch in France Report, 2007

Next to Quebec, French travellers planning to visit Canada are likely to visit Ontario. One in three (31%) are most likely to visit Ontario of all provinces in Canada.

175

Under-Performing Countries for France Long-Haul Outbound

French travellers are not visiting the U.S. to the extent that they might, which is also the case among travellers from the U.K.

789,815

117,785

47,111

20,231

275,913

175,345

9,396

67,379

2,674

23,487

1,542,838

371,780

151,176

96,721

321,936

217,878

45,196

100,615

25,473

41,520

US

Japan

Korea

Taiwan

Brazil

India

Pakistan

Australia

Bangladesh

Venezuela



176

Over-Performing Countries for France Long-Haul Outbound

Canada is clearly overperforming as a destination, although Ontario also overperforms to a lesser extent.

369,624

130,124

402,174

71,978

132,304

147,500

182,295

163,180

193,699

319,910

299,168

607,600

240,922

126,576

346,538

9,379

35,859

49,919

9,851

4,367

28,612

73,136

221,704

12,234

Canada

ONTARIO

China

Cambodia

Viet Nam

Hong Kong

Mauritius

Madagascar

Philippines

Thailand

Dominican Republic

Nepal



177

France - Canadian Visitor Expenditure Profile



Average expenditure per trip (Euros) 4,400






178

Germany

179

Total Visitors

050

100150200250300350

2002 2003 2004 2005 2006

#



2002 2003 2004 2005 2006

Total Outbound* 6,961 6,574 7,612 6,817 6,508



Source: Statistics Canada, ITS 2002-2006 *CTC European Consumer and Travel Trade Research, February 2008

While the number of long-haul trips decreased marginally between 2002 and 2006, Canada’s share increased slightly, and Ontario’s share was stable.

180


75%44%

36%41%42%

24%26%

46%29%32%

30%8%

35%13%13%

19%12%

10%12%

5%5%

3%5%

To enjoy the natural sceneryTo experience local culture

To visit historic sites, museums, or galleriesTo interact with the local people

To see new placesTo relax, unwind, and decompress

To go shoppingTo visit protected areas

To realize a long term dreamTo visit friends and relatives

To experience big cities in another countryLow rates, good deals, and discounts

To see and watch wildlifeFor entertainment and nightlife

To view aboriginal sites and eventsTo participate in outdoor activities

To be together as a familyTo attend festivals and/or events

A trip that combined business with pleasureTo visit a spa, health centre, or hot springs

HoneymoonTo go downhill skiing or snowboarding

Other ReasonsSource: CTC European Consumer and Travel Trade Research, February 2008

Like their counterparts from the U.K. and France, Germans enjoy the natural scenery of Canada. Similar to those from France, they are interested in experiencing local culture and interacting with the local populace.

181

Long-Haul Destination PriorityGermans rank Canada 5th, overall, as a long-haul destination priority.

Rank

1. United States

2. Caribbean

3. Turkey

4. Australia

5. Canada

6. Thailand

7. New Zealand


182



Segment:

Overall 5th

Repeat travellers (travelled to Canada in past 3 years) 1st


While Germans rank Canada lower, overall, than travellers from the U.K. or France, those who have actually visited Canada had a positive experience and rank Canada first.


183

Interest in Canada’s ActivitiesConsistent with reasons for travelling to Canada, activities of interest among prospective travellers are “rivers and waterfalls”, “taking nature tours”, “taking city tours” and “visiting wilderness areas”.




2. Taking nature tours



5. Getting to know the local inhabitants




9. Viewing mountains

10. Trekking in a nature area 11


184


Top 16 Barriers To Visiting Canada (Among Those Not Likely To Visit Canada In The Next 12 Months)

1. Concerns about the cost 2. Concerns about country too vast for a one or two week holiday 3. Insufficient information or knowledge about where to go in Canada 4. Insufficient information or knowledge about what deals are available (4, 5, 6 tied) 5. Insufficient information or knowledge about types of accommodation available (4, 5, 6 tied) 6. Insufficient information or knowledge about what there is to do besides seeing nature (4, 5, 6 tied) 7. Concerns about lack of convenient flights to Canada 8. Insufficient information or knowledge about where to get information on the internet (8, 9 tied) 9. Concerns about not being able to speak the language (8, 9 tied) 10. Concerns about distance between accommodation and nature based activities (10, 11 tied) 11. Insufficient information or knowledge about cultural activities available (10, 11 tied) 12. Insufficient information or knowledge about restaurants bars and clubs (12, 13 tied) 13. Insufficient information or knowledge about nightlife and entertainment options (12, 13 tied) 14. Concerns about the weather (14, 15 tied) 15. Concerns about safety in Canadian nature (14, 15 tied) 16. Concerns about greenhouse gas emissions due to air travel

Consistent with their counterparts from the U.K. and France, Germans are concerned about costs and lack of information.


185


59%39%

37%34%33%33%

30%29%29%

27%27%

23%19%

16%16%15%15%15%14%14%13%12%12%11%10%10%9%9%9%8%

Western Europe (Net)Middle East (Net)

North America (Net)Asia (Net)

TurkeyUnited States

Eastern Europe (Net)Africa (Net)

AustriaSpain

ItalyFrance

UKGreece

SwitzerlandNetherlands

ThailandCheck Republican

EgyptSouth/Central

PacificTunisia

CaribbeanRussia

HungaryPoland

CanadaAustraliaPortugal

ChinaSource: CTC European Consumer and Travel Trade Research, February 2008

Germans are widely travelled and are as likely to have visited the Middle East as North America or Asia.

186

Size of the Potential Market to Canada (Next 2 Years)3.6M German tourists are planning to visit Canada in the next 2 years.










Source: Global Tourism Watch Germany Report, 2007

187


4%

16%

29%

31%

21%

Unlike French travellers who will likely be spending four or more nights in Canada, those from Germany are as likely to be planning a short stay as one of four or more nights.



Definitely

Very Likely

Somewhat likely

Not very likely

Not at all likely

4%

15%

24%

30%

28%

Definitely

Very Likely

Somewhat likely

Not very likely

Not at all likely





188


BC MB ON ATL NORTH



Size of immediate market for the provinces

2,828,000 1,074,000 3,150,000 1,862,000 1,575,000

11

German travellers to Canada are likely to visit Ontario.



189


88%

79%

72%

52%

49%

44%

35%

52%

22%

8%

4%

4%

8%

2%

Ontario

British Columbia

Quebec

Atlantic Canada

Alberta

Northern Canada




Base: Those likely to visit Canadian in the next 2 years and/or those who are considering have decided to visit or have booked a trip there (n=871).

Source: Global Tourism Watch in Germany Report, 2007

Not only are German travellers to Canada likely to visit Ontario, but Ontario is the province that they are most likely to visit (mentioned by 52%).

190

Under-Performing Countries for Germany Long-Haul Outbound

Both Canada and Ontario underperform in terms of capturing German long-haul tourists.

1,385,520

130,704

115,337

76,407

277,182

34,943

302,323

148,239

6,706

3,190

14,421

19,050

3,320,550

239,598

926,464

342,296

517,511

237,067

492,216

282,804

29,303

21,052

28,200

32,746

US

ONTARIO

Japan

Korea, Republic

Brazil

Taiwan

Canada

Australia

Trinidad and Tobago

Bangladesh

Uruguay

Colombia



191

Over-Performing Countries for Germany Long-Haul Outbound

Thailand, the Dominican Republic and South Africa greatly overperform as destinations for German long-haul travel.

76,745

162,800

47,402

57,251

68,214

70,830

500,567

258,517

223,715

507,942

46,129

130,182

12,596

18,555

8,257

2,656

429,698

140,450

64,205

99,737

Vietnam

Hong Kong

Sri Lanka

Mauritius

Namibia

Maldives

China

South Africa

Dominican Republic

Thailand



192

Germany - Canadian Visitor Expenditure Profile



Average expenditure per trip (Euros) 5,700






193

South America

194

South America – Number of Visitors to Canada

102100

6747

65

20062005200420032002

Total South America

126

234

20062005200420032002

Guyana89

52

7

20062005200420032002

Venezuela

4650

3421

26

20062005200420032002

Brazil

1299

65

20062005200420032002

Argentina

108

436

20062005200420032002

Columbia


195

Central America

196

Central and other North America and Caribbean – Number of Visitors to Canada

1099087

7897

20062005200420032002

Central and Other North America

2220181319

20062005200420032002

Barbados

2421201719

20062005200420032002

Trinidad & Tobago

998278

6882

20062005200420032002

Mexico

222121

1619

20062005200420032002

Jamaica

114107103

8693

20062005200420032002

Total Caribbean


197

Mexico

198

Total Visitors

Mexican long-haul travel has clearly increased between 2002 and 2006. However, neither Canada’s nor Ontario’s share increased over this period.

0

50

100

150

200

2002 2003 2004 2005 2006

#



2002 2003 2004 2005 2006

Total Long-Haul Outbound* 1.141.6 1,061.5 1,186.5 1,319.0 1,373.5



Source: Statistics Canada ITS, 2002-2006 *CTC Mexico Consumer and Travel Trade Research, September 2007

199

Reasons for Past Three Year Overseas Travel(Canada or Most Recent Overseas Destination)

Like their counterparts from Europe, Mexicans enjoy the natural scenery of Canada. However, in contrast to visitors from Europe, a substantial proportion are looking to explore and learn and possibly assess educational opportunities for their children.

Percent Of Travellers To… Percent Of

Travellers Canada US Europe Other World

Total—Actual (2,173) (506) (1,133) (260) (268) % % % % % Visiting friends and relatives 43 33 50 38 33 Learning or exploring something new and engaging 39 49 33 44 42 Relaxing, unwinding and decompressing in another country 39 42 39 31 40 Experiencing local culture 30 37 19 50 46 Attending events/attractions 29 20 36 22 22 Sightseeing 27 50 17 28 37 Shopping 24 22 30 13 13 Combining study with pleasure 15 22 13 18 9 Experiencing a specific outdoor adventure or activity 13 25 9 9 18 Assessing if the country is a good place for my children to go to school 12 18 11 10 8 Visiting someone studying abroad 10 12 10 11 8 Other reasons 6 4 8 4 6 Source: CTC Mexico Consumer and Travel Trade Research, September 2007

200

Level of Interest in Canadian Activities (Very Interested)

82%82%

78%76%

73%68%

65%65%

63%61%60%60%60%

58%57%57%

53%50%50%

43%39%39%38%37%

Seeing Niagara FallsVisiting Canada's major cities

Aurora viewing in Canada's northVisiting a world heritage site

Seeing the Canadian RockiesExperiencing fine cuisine, good wine, being pampered

Visiting authentic, aboriginal villages and attractionsSeeing wildlife in their natural environment

Going whale watchingGoing hiking in Canadian parks

Staying at a luxury Canadian resortExperiencing French Canadian culture in Quebec

Enjoying a variety of cuisineTaking a coastal cruise

Viewing autumn leaves changing coloursTaking a river/sea cruise

Taking a rail tourGoing skiing/snowboarding

Renting a car to exploreEnjoying a spa experience

Visiting wineriesStudy FrenchStudy English

Visit Canada for shoppingBase: Percent of intenders who are definitely/very likely to visit Canada in the next two years (n=985).

Source: CTC Mexico Consumer and Travel Trade Research, September 2007

Potential visitors to Canada from Mexico would like to see Niagara Falls, visit major cities, view the aurora borealis and see world heritage sites.

201


Top 19 Barriers To Visiting Canada 1. Bad time for you financially 2. Other more interesting places to go 3. Bad weather in Canada 4. Cost of travel to Canada 5. Not enough vacation time 6. Better shopping opportunities elsewhere 7. Not enough knowledge of Canada (7, 8 tied) 8. Cost of travel within Canada (7, 8 tied) 9. Lack of interest in Canada 10. No interesting tours available in Canada (10, 11 tied) 11. Language difficulties in Canada (10, 11 tied) 12. Nothing special or unique in Canada 13. An unfavourable exchange rate (13, 14, 15 tied) 14. Amount of time required to get to Canada (13, 14, 15 tied) 15. Difficult to find information about Canada (13, 14, 15 tied) 16. Not a good value for money (16, 17 tied) 17. Not enough services or products in Spanish (16, 17 tied) 18. Document and/or visa requirements 19. Border crossing difficulties

Cost is clearly a major barrier to visiting Canada, and bad weather is also more concerning to Mexicans than to visitors from the U.K. and Europe.


202

Destination Visited in Past 3 Years

69%

24%

14%

11%

8%

6%

5%

5%

18%

8%

5%

1%

1%

2%

United States

Europe (Net)

Spain

France

Italy

Germany

UK/England

Other Europe

Canada

South America

Caribbean/Cuba

Far East/Asia

Australia/New Zealand

Other WorldBase: Percent of travellers (n=2,173).


Not surprisingly, the U.S. is the most often cited destination for foreign travel in the past 3 years. Canada is slightly behind Europe, in this regard.

203

Destination Definitely/Very Likely to Visit in Next 2 Years

80%77%

64%62%

58%58%

51%50%49%48%

46%35%35%

32%31%30%

21%

Europe (Net)United States

SpainCanadaFrance

ItalyCaribbean/Cuba

Other South AmericaUK/England

Other EuropeGermany

Central AmericaBrazil

HawaiiFar East/Asia

Australia/New ZealandOther World

Base: Percent of intenders (n=1,581).Source: CTC Mexico Consumer and Travel Trade Research, September 2007

While most Mexicans who travelled abroad made a visit to the U.S., Europe edges out the U.S., slightly as a destination that they would like to visit in the next 2 years. Spain tops the list of European countries. Canada, however, also performs well and is as likely to be mentioned as Spain.

204

Size of the Potential Market to Canada (Next 2 Years)1.6M Mexican tourists are planning to visit Canada in the next 2 years.

Base: Long-haul pleasure travellers in Mexico City, Guadalajara and Monterrey (n=1,447)

Source: Global Tourism Watch in Mexico Report, 2007









205


14%

33%

31%

15%

7%

Mexican travellers planning to visit Canada are equally likely to be planning an extended and a short stay in Canada. Although supporting data is not available, it is hypothesized that they might be considering spending time in both the U.S. and Canada, and that the proportion of time spent in Canada might be extended depending on their Canadian experience.



Definitely

Very Likely

Somewhat likely

Not very likely

Not at all likely

15%

33%

31%

15%

7%

Definitely

Very Likely

Somewhat likely

Not very likely

Not at all likely




Source: Global Tourism Watch Mexico Report, 2007

206


BC MB ON ATL NORTH



Size of immediate market for the provinces 1,462,000

699,000 1,576,000 861,000 748,000

11

Mexicans planning to visit Canada are likely to be planning to visit Ontario.


Source: Global Tourism Watch in Mexico Report 2007

207


97%

94%

90%

70%

53%

50%

46%

55%

20%

17%

6%

1%

1%

0%

Ontario

Quebec

British Columbia

Alberta

Atlantic Canada


Northern Canada



Base: Those likely to visit Canadian in the next 2 years and/or those who are considering have decided to visit or have booked a trip there (n=1,197).

Source: Global Tourism Watch in Mexico Report, 2007

Not only are Mexican travellers planning to visit Ontario, but Ontario is generally the province that they are most likely to visit in Canada.

208

Mexico - Canadian Visitor Expenditure ProfileThe amount spent per night is relatively low for Mexican tourists. However, the time spent in Canada is relatively long so the total Canadian expenditure is substantial. Ontario gets the lion’s share of their tourism spending.

Average # of nights 19

Average expenditure per person per trip $1,363

Average expenditure per person per night $71 11


209

Main Purpose of TripPleasure trips accounts for a relatively large share of Mexican visits to Canada.

10%

19%

50%

21%

VFR

Pleasure

Other

Busi-ness

Source: CTC Mexico Consumer and Travel Trade Research, September 2007 Total Mexican Visitors to Canada

210

Asia

211

Asia – Number of Visitors to Canada86

61344256

20062005200420032002

Mainland China

182195207

86197

20062005200420032002

Japan

535152

3545

20062005200420032002

Hong Kong8780

644338

20062005200420032002

India

7076635770

20062005200420032002

Israel 2121171417

20062005200420032002

Philippines

658619586

395583

20062005200420032002

Total Asia

686570

4759

20062005200420032002

South Korea


212

South Korea

213

Total Visitors

0

50

100

150

200

2002 2003 2004 2005 2006

#



2002 2003 2004 2005 2006

Total Outbound N/A N/A N/A N/A N/A

Canadian Market Share N/A N/A N/A N/A N/A

Ontario Market Share of Canadian Visits 42 38 44 45 42


South Korean visits to Canada are growing, although the proportion captured by Ontario is stable.

214

Primary Reasons for Travel - Canada

42%

16%

13%

11%

8%

5%

2%

2%

1%

Sightseeing

See friends and family

Local culture

Combine school with pleasure

Combine business with pleasure

To assess if the country is a good place for children to go to school

To visit a study studying abroad

Other reasons

To relax, unwind, and decompress in a larger country

Source: CTC South Korea Consumer and Travel Trade Research, 2006

Apart from sightseeing, education is a major reason for travel to Canada.

215


Top 3 Barriers To Visiting Canada

1. Lack of knowledge

2. Lack of product

3. Lack of inexpensive flights

The barriers that South Koreans face are similar to those faced by travellers from established markets such as the U.K., and include cost and lack of knowledge.


216

South Korean Departures by Destination- 2004 vs. 2005Between 2004 and 2005, South Korean travel increased to China, the Philippines, Vietnam and Taiwan.

Korean Departures 2005 Rank Destination Country 2005 2004 Change % 1. China 2,960,642 2,334,781 +26.8 29.4 2. Japan 1,739,424 1,569,175 +10.8 17.3 3. United States 665,181 627,575 +6.0 6.5 4. Thailand 661,779 754,093 -12.2 6.6 5. Philippines 481,397 377,217 +27.6 4.8 6. Hong Kong 344,393 305,351 +12.8 3.4 7. Vietnam 268,110 203,300 +31.9 2.7 8. Singapore 210,060 189,949 +10.6 2.1 9. Australia 198,088 172,265 +15.0 2.0 10. Taiwan 172,262 134,734 +27.9 1.7 11. Germany 141,606 141,854 -0.2 1.4 12. Canada 134,975 133,836 +0.9 1.3 13. Indonesia 124,980 124,828 +0.1 1.2 14. England 116,224 111,945 +3.9 1.2 Source: KNTO


217

Latent Demand for Canada

13,278,000

3,984,000

2,064,000

516,000

173,000

The number of South Koreans who plan to visit Canada in the next 12 months is much higher than the proportion who visited Canada in 2005.

Travelled long-haul in the past 3 years or definitely/very likely to in the next 2 years

Very interested in visiting Canadain the next 2 years (31.0%)

Definitely/very likely to visit Canadain the next 12 months (15.2%)

Definitely likely to visit Canadain the next 12 months (3.38%)

Current number of visitorsto Canada (2005) (1.3%)


218

Size of the Potential Market to Canada (Next 2 Years)2.6M South Koreans plan to visit Canada in the next 2 years.










Source: Global Tourism Watch South Korea, 2007

219


7%

18%

39%

22%

15%

South Korean travellers planning to visit Canada are equally likely to be planning an extended and a short stay in Canada.



Definitely

Very Likely

Somewhat likely

Not very likely

Not at all likely

5%

19%

38%

21%

16%

Definitely

Very Likely

Somewhat likely

Not very likely

Not at all likely





220


BC MB ON ATL NORTH


Likely to visit again 89% 6% 89% 41% 20%

Size of immediate market for the regions 2,331,000 157,000 2,331,000 1,074,000 524,000

11

South Koreans planning to visit Canada are likely to be planning to visit Ontario.



221


89%

89%

76%

41%

38%

20%

11%

55%

29%

9%

2%

2%

1%

1%

Ontario

British Columbia

Quebec

Atlantic Canada

Alberta

Northern Canada




Base: Those likely to visit Canadian in the next 2 years and/or those who are considering have decided to visit or have booked a trip there (n=1,062).Source: Global Tourism Watch in South Korea Report, 2007

South Koreans planning to visit Canada are most likely to be planning to visit Ontario (55%).

222

Activities Participated in on Most Recent Trips (Culturally Oriented)

74%

68%

67%

63%

53%

45%

42%

37%

23%

19%

13%

Eating at a Korean restaurant

Seeing old architecture

Visiting places of historical interest

Attending theatres, clubs or showsAboriginal cultural experiences,

celebrations and attractions

Visiting museums and art galleries

Staying at a luxury resort

Getting to know the local inhabitants

Visiting friends or relatives

Visiting a spa

Studying English


While South Korean travellers enjoy seeing old architecture and historic places, they are looking for something familiar when eating out.

223

Activities Participated in on Most Recent Trips

72%57%

54%53%

45%41%

36%25%

23%18%

12%11%

9%5%

3%

Seeing beautiful beaches and coast linesTrekking in a nature area

Seeing beautiful rivers or waterfallsSunbathing or other beach activities

Taking a garden or flower tourSeeing wildlife in their natural environment

Viewing majestic mountainsVisiting wilderness areas

Canoeing/kayaking/boatingTravelling by train

GolfingFishing

Whale watchingSkiing/snowboarding

Dog-sledding


Nature activities are popular with South Korean travellers, as they are with those from European countries.

224

Japan

225

Total Visitors (000)

050

100150200250300350400450

2002 2003 2004 2005 2006

#



2002 2003 2004 2005 2006

Total Outbound (mil)* 16,520 13,300 16,830 17,400 17,540



Source: Statistics Canada, 2002-2006 *CTC Restoring Canada’s Growth/Yield with the Japanese travel Market July 2007

While long-haul travel from Japan has increased from 2002 to 2006, Canada’s and Ontario’s shares have decreased slightly.

226


29%

27%

23%

12%

9%

5%

5%

2%

2%

1%

1%

1%

1%

United States

Asia

Europe

Australia

Canada

South Pacific

New Zealand

Africa

South America

Middle East

Mexico

Caribbean

Central AmericaBase: Long-haul pleasure travellersNote: Includes pleasure trips of 4 or more nights where at least one night was spent in paid accommodations.

Canada’s Share Of Destination Visits = 7.6%

Source: Global Tourism Watch Japan, 2007

Japanese tourists are as likely to have visited the U.S. as to have travelled to an Asian destination in the past 3 years. Due to distance, it is not surprising that they are more likely to have visited Australia than Canada.

227

Unaided Destination Consideration (Next 2 Years)

20%10%10%

9%7%7%7%7%7%7%

6%6%

4%4%

3%3%3%3%

2%2%

HawaiiItaly

AmericaCanadaFrance

New ZealandThailandAustralia

Airlie Beach (Australia)Europe

GermanyUK

SpainGuam

TurkeyEgypt

BaliSwitzerland

VietnamMalaysia

Base: Those who are planning on using a long-haul trip in the next two years (n=1.063).


Hawaii is the most often cited destination for a long-haul trip in the next 2 years - well ahead of Italy, mainland United States and Canada.

228

Size of The Potential Market to Canada (Next 2 Years)3.4M Japanese tourists are planning to visit Canada in the next 2 years.











229


3%

13%

33%

30%

21%

Japanese tourists are as likely to be planning an extended as a short stay in Canada.



Definitely

Very Likely

Somewhat likely

Not very likely

Not at all likely

2%

12%

33%

31%

21%

Definitely

Very Likely

Somewhat likely

Not very likely

Not at all likely





230


BC MB ON ATL NORTH


Likely to visit region 71% 2% 79% 26% 15%

Size of immediate market for the regions 2,437,000 69,000 2,712,000 893,000 515,000

11

Japanese tourists planning to visit Canada are likely to be planning to visit Ontario. And despite the popularity of Anne of Green Gables and Prince Edward Island with Japanese readers, only a quarter of Japanese tourists plan to visit the Atlantic region.



231


79%

71%

49%

39%

26%

15%

3%

49%

27%

7%

9%

3%

4%

1%

Ontario

British Columbia

Quebec

Alberta

Atlantic

North

Saskatchewan/Manitoba



Base: Those likely to visit Canada in the next 2 years and/or those who are considering have decided to visit or have booked a trip there (n=728).


Japanese travellers planning to visit Canada are more likely to be planning to visit Ontario than any other Canadian province.

232

Under-Performing Countries for Japan Long-Haul Outbound

Portugal greatly underperforms in terms of capturing Japanese tourists.

373

2,325

4,466

1,611

4,329

634

380

1,933

10,847

1,695

1,512

33,709

16,200

14,038

8,846

8,739

2,762

2,434

3,926

12,734

3,234

2,454

Portugal

Algeria

Colombia

Dominican Republic

Venezuela

Trinidad & Tobago

Angola

El Salvador

Tunisia

Mauritius

Uganda



233

Over-Performing Countries for Japan Long-Haul Outbound

The U.S., Canada and Ontario all over perform in terms of capturing Japanese long-haul travellers.

181,771

74,638

13,671

12,124

33,925

269,780

257,200

386,485

421,808

72,754

69,002

5,255

2,264

1,952

152,395

43,973

163,594

6,877

1,244,541

ONTARIO

Brazil

Nigeria

Zimbabwe

Paraguay

Spain

South Africa

Canada

Peru

US



234

Japan - Canadian Visitor Expenditure ProfileWhile Japanese visitors spend between $6,000 and $7,000, per party, in Canada, this amount is generally spread across several provinces. Nevertheless, B.C. and Ontario each capture a substantial portion.

Average expenditure per party per trip (Yen) 534,000

Exchange Rate (Nov. 3, 2008) 80.4299

Average expenditure per party per trip (Cdn.) $6,638.21


Average expenditure per person per night (Cdn) $548.61 11

Source: CTC Restoring Canada’s Growth/Yield with the Japanese Travel Market, July 2007

235

Main Purpose of TripSightseeing is the main reason Japanese tourists come to Canada.

38%

62% Sight-seeing

Other

Source: CTC Restoring Canada’s Growth/Yield with the Japanese Travel Market, July 2007

Japanese travellers To Canada

236

China

237


0255075

100125150

2002 2003 2004 2005 2006

#

Total CanadaVisitors


2002 2003 2004 2005 2006

Total Outbound* 16,602 20,215 28,850 NA NA

Canadian Market Share 0.5 0.3 0.3

Ontario Market Share 0.3 0.2 0.1

Source: Statistics Canada, ITS 2002-2006 *CTC Consumer Research In China Quantitative Report, January 2007

While the number of long-haul overseas trips increased considerably between 2002 and 2006, Canada’s and Ontario’s share decreased, according to the available data.

238

Main Reason for TripIn contrast to travellers from France and Germany who want to mingle with the local population, Chinese travellers are more interested in enjoying the company of their travelling companions.

Ontario Canada (214) (260) % % To spend quality time with friends and family 24 26

For rest and relaxation 21 21

For learning and discovery 18 17

To have fun and be entertained 16 15

To see something new and different 12 12

To enjoy the good life and be pampered 5 5

To improve my body and spirit 3 4

Source: CTC Consumer Research In China Quantitative Report, January 2007

239

Interest in Visiting Canada by Market

19%

33%

17%

19%

7%

41%

35%

32%

47%

50%

60%

68%

49%

66%

57%

Overall, one in five Chinese long-haul travellers is very interested in visiting Canada in the next 2 years.

Next Two Years Next Five years

Total (n=1,373)

Guangzhou (n=348)

Shanghai (n=343)

Beijing (n=346)

Shenzhen (n=336)

26%

41%

21%

28%

14%

47%

30%

37%

51%

70%

73%

71%

58%

79%

84%

Total (n=1,336)

Guangzhou (n=344)

Shanghai (n=339)

Beijing (n=338)

Shenzhen (n=315)

Very Interested Somewhat Interested Total


240


46%11%

15%8%

3%1%2%2%2%

0%0%1%

6%2%1%0%

60%40%

30%24%23%

20%16%15%

12%10%9%9%9%9%9%9%

First MentionAll Mentions

Don't know enough about Canada/too unfamiliar

Other places I want to see firstSimply no interest in going

Don't have friends or relatives in CanadaPoor weather/too cold

Too hard to get entry visas

Too far/flight to Canada too longToo expensive (roll up)

Don't know anyone that has gone to CanadaPrefer more exotic places

Waiting for work situation to improveNo major tourist attractions there

Been there alreadyNothing to see and do there

Prefer to travel within AsiaToo big/main attractions too far apart


While lack of familiarity is a major barrier among Western European travellers, it is an overwhelming barrier for many potential Chinese travellers.

241

Dream Destination

52%

39%

37%

66%

27%

11%

9%

10%

6%

5%

48%

44%

32%

32%

25%

23%

16%

15%

8%

8%

United States

France

Australia

Canada

Switzerland

UK

Italy

Japan

New Zealand

Germany

25%

9%

35%

12%

2%

4%

2%

2%

0%

1%

23%

16%

13%

13%

6%

6%

4%

4%

2%

2%

United States

France

Canada

Australia

UK

Switzerland

Italy

Japan

New Zealand

GermanyInterested In Visiting Canada

Total

Note: Respondents were asked to indicate their top three dream destinations. Interested in visiting Canada as defined as those who are very interested in visiting in the next 2 years (n=262). Total N-1,295).


First Mentions All Mentions

Nevertheless, Canada ranks fairly high among places that Chinese travellers would like to visit, about on par with Australia.

242

Activities Participated InChinese travellers enjoy seeing cities, shopping and visiting scenic landmarks. Similar to their counterparts from South Korea, they are looking for something familiar when eating out.

Canada All Destinations (260) (1140) % % City sightseeing 93 93 Shopping 79 81 Visiting scenic landmarks 64 67 Dining in Chinese restaurants 64 53 Visiting places of historical interest 46 48 Touring by bus, boat or train 37 40 Visiting a theme park 40 40 Walking tours 38 37 Visiting a garden attraction 36 32 Visiting museums or galleries 25 28 Visiting friends and relatives 37 27 Dining in other fine restaurants 25 25 Enjoying arts and culture (e.g., theatre, concerts) 16 24 Visiting a zoo, aquarium or planetarium 19 22 Visiting national or provincial parks 32 22 Visiting local Chinese communities 31 21 Visiting places commemorating important people 20 21 Visiting night clubs, karaoke bars or other 23 20 Source: CTC Consumer Research In China Quantitative Report, January 2007

243

Destinations Visited on Most Recent Trip Outside of Asia

25%19%19%

16%14%

9%9%

6%6%

2%2%2%1%1%1%

AustraliaFrance

United KingdomUS Mainland

GermanySwitzerland

ItalyNew ZealandOther Europe

HawaiiSpain

South AfricaGreece

Guam/American Samoa/SaipanMexico

Base: Those who travelled outside of Asia in the past three years, but not to Canada (n=600)Note:Percentages may not add to 100% due to multiple responses. Note that Canada is not included in this exhibit as this question was only asked to the Outside Asia group (i.e., those who travelled Outside of Asia, but not to Canada).


Australia, France and the U.K., all rank ahead of the U.S. as destinations visited by Chinese travellers.

244

Incidence Rates and Potential Market Size for Travel Outside Area

2.8M Chinese travellers are likely to travel outside Asia in the next 2 years.

Guangzhou Shanghai Beijing Shenzhen (1375) (1375) (1375) (1375) Population: Total population (2004) 5,863,528 10,171,661 7,072,000 5,975,506 Population 18 years or older (estimated) 4,390,305 7,616,011 5,295,146 4,474,148 Pleasure Travellers To Destinations Outside Asia:

Pleasure travellers to destinations outside area (past 3 years) 3.0% 5.6% 6.0% 3.9% Plan to travel outside Asia (next 2 years) 6.9% 9.9% 7.8% 6.5% Total pleasure travel outside Asia incidence 9.9% 15.5% 13.8% 10.4% Potential Market Size: Potential pleasure travellers outside Asia by market 435,000 1,180,000 731,000 465,000 Potential pleasure travellers outside Asia (all mentions) 2,811,000 Base: Those who did not travel outside of Asia in the past three years, but are definitely or very likely to in the next two years.Note: Estimates derived from random telephone survey.


245

Size Of The Potential Market To CanadaOf the 2.8M Chinese tourists who are planning to travel outside Asia in the next 2 years, 2.0M are planning to visit Canada.

Guangzhou Shanghai Beijing Shenzhen Total (348) (343) (346) (336) (1373) Total adult pleasure travellers outside Asia 435,000 1,180,000 731,000 465,000 2,811,000 Potential Market Size—Conservative Estimate:

Interest in visiting Canada (very interested in the next 2 years) 33% 17% 19% 7% Potential pleasure visitors to Canada (next 2 years) 144,000 201,00 139,000 33,000 517,000 Potential Market Size—Broader Estimates:

Interest in visiting Canada (very interested in the next 5 years) 71% 58% 79% 84% Potential pleasure visitors to Canada (next 5 years) 309,000 684,000 577,000 391,000 1,961,000 Source: CTC Consumer Research In China Quantitative Report, January 2007

246

China - Canadian Visitor Expenditure Profile

Average expenditure per party per trip $9,702


Average Expenditure Per Person Per Day:

Including airfare $456

Excluding airfare $321

Average # of nights for Canada 15 11


247

Main Purpose of TripVisiting friends and relatives is a major reason for planning to travel outside Asia in the next 2 years.

1%

14%

19%

26%

39% VFR

Pleasure/Vacation

Personal/Other

Com-bine Busi-ness/ Plea-sure

Study/ Pleasure

Source: CTC Consumer Research In China Quantitative Report, January 2007 Visitors To Canada (n=260)

248

India

249


0

50

100

150

200

2002 2003 2004 2005 2006

#



2002 2003 2004 2005 2006

Total Outbound* 4,940 4,502 5,400 6,183 7,500



Source: Statistics Canada, 2002-2006 *CTC India Consumer and Travel Trade Research, December 2007

The number of long-haul overseas trips increased considerably between 2002 and 2006, and Ontario’s share increased as well.

250


72%

55%

52%

51%

49%

47%

39%

22%

38%

15%

13%

5%

5%

Shopping

Beach/waterside holiday

Outdoor adventure/recreational activities

Experiencing local culture

Sightseeing and relaxing

Visit friends/relatives (Net)

A visit to see friends/relativesA visit to see friends/relatives combined with

additional leisure travel away from friends/relativesFor the nightlife/clubbing

To see if it is a good place to emigrate toA trip that combined business with additional

pleasureHoneymoon

To assess if a country is a good place for my children to go to school

Source: CTC India Consumer and Travel Trade Research, December 2007

Indian travellers to Canada enjoy shopping, spending time on the waterfront or an outdoor adventure, and experiencing the local culture.

251

Interest In Canada’s Activities (Very Interested)Potential Indian travellers to Canada are interested in seeing local Indian festivals as well as taking in the sights such as Niagara Falls and visiting historic sites.



1. Observing local Indian festivals

2. Seeing Niagara Falls

3. Visiting historical sites

4. Visiting majestic mountains

5. Visiting friends and relatives

6. Going to the theatre/ballet/other shows

7. Touring the country by car

8. Going clubbing/other nightlife

9. Snow skiing/snowboarding/ice skating

10. Experience French Canadian cuisine 11


252

Barriers To Visiting CanadaCost is by far the largest barrier to visiting Canada.

Top 20 Barriers To Visiting Canada (Among Those Not Likely To Visit Canada In The Next 12

Months) 1. High cost of packaged tours to Canada 2. High cost of hotels within Canada 3. High cost of air transportation to Canada 4. Overall trip would be too expensive 5. High cost of tours within Canada 6. Expensive to travel within Canada 7. High cost of entertainment 8. High cost of meals within Canada 9. Do not have friends or relatives in Canada 10. Personal reasons 11. Do know enough about Canada/too unfamiliar 12. Unfavourable exchange rate 13. Poor value for money 14. Prefer to travel to destination closer to India 15. There are more interesting/exotic places to go 16. Too busy at work 17. Too far to travel/Flight to Canada is too long 18. Country is too vast to see on one trip 19. Safety concerns (18, 19 tied) 20. Nothing special or unique about Canada Source: CTC India Consumer and Travel Trade Research, December 2007

253

Long-Haul Countries Visited in Past 3 Years

50%27%

18%15%

12%12%

10%8%7%6%6%

4%4%4%3%3%3%3%

Asia (Net)Singapore

Europe (Net)Middle East (Net)

MalaysiaDubia

UKAustraliaThailand

United States MainlandNepal

CanadaGermany

SwitzerlandFrance

New ZealandHong Kong

UAESource: CTC India Consumer and Travel Trade Research, December 2007

Indian long-haul travellers mention a wide variety of destinations, with Asia not surprisingly, at the top of the list. A substantial proportion also visited Singapore.

254

Very Interested in Visiting… In Next Year 2 years

23%

20%

15%

14%

8%

Southeast Asia

Europe

United States

Australia

Canada

Twice as many Indians are very interested in visiting the U.S. and Australia as Canada.


255

India - Canadian Visitor Expenditure Profile

Average party size (excluding lone travellers) 4.5




Average expenditure per person per night $160.49 11


256

Main Purpose Of Trip to CanadaWhile visiting friends and relatives is often a motivating factor for a trip to Canada, it tends to take a back seat to other activities such as sightseeing, experiencing natural wonders and shopping.

51%

29%

20%

VFR

Sightseeing And Relaxing

Other

Source: CTC India Consumer and Travel Trade Research, December 2007Total Indian travellers to Canada

257

Australia

258

Total Visitors

0

50

100

150

200

2002 2003 2004 2005 2006

#



2002 2003 2004 2005 2006

Total Outbound* 3,461 3,388 4,369 4,759 4,941



Source: Statistics Canada, 2002-2006 *CTC Australia Consumer and Travel Trade Research, August 2007

Outbound long-haul travel from Australia increased considerably between 2002 and 2006. However, Canada’s and Ontario’s shares both decreased.

259


70%55%

37%56%

38%32%

35%27%28%

35%31%

15%

16%27%

7%10%

6%7%8%

Sightseeing (Net)Sightseeing - mainly city

Sightseeing - mainly natureTo see friends and relatives (Net)A visit to see friends and relatives

To see friends/relatives combined with additional leisure travel away from friends and relatives

To experience different cultures and ways of lifeTo visit historical sites and important places in historyTo relax, unwind and decompress in a larger country

Outdoor activities (Net)Outdoor adventure/recreational activities

To participate in skiing/snowboarding

To visit a popular, trendy placeTo experience unspoiled nature

A trip that combined with additional leisure travelTo take a coastal cruise

To see if it is a good place to immigrate toTravelling on a working visa

Other reasons

Source: CTC Australia Consumer and Travel Trade Research, August 2007

Sightseeing and visiting friends and relatives top the list of activities of Australian tourists.

260

Interest in Canadian ActivitiesAustralians have a unique list of activities on their to-do list when planning a trip to Canada including seeing the Rockies, visiting historical sites, seeing unspoiled natural places and experiencing French Canadian culture/cuisine.



1. Seeing and experiencing the Rockies and Mountains

2. Visiting historical sites

3. Feeling the purity and freshness of untouched nature

4. Experiencing French Canadian culture/cuisine

5. Wild animals in their environment

6. See polar bears

7. Visiting museums and galleries

8. Culinary experiences (e.g., fine dining, winery tours)

9. Viewing aurora

10. Participate in an activity related to their hobbies 11


261

Barriers To Visiting CanadaSimilar to visitors from Asian countries, cost is the largest barrier facing prospective tourists.

Top 20 Barriers To Visiting Canada (Among Those Not Likely To Visit Canada In The Next 12

Months) 1. Overall trip would be too expensive 2. High cost of air transportation to Canada 3. High cost of packaged tours to Canada 4. Not enough money available 5. High cost of hotels within Canada 6. Expensive to travel within Canada 7. Bad time for me financially 8. Too expensive to travel as a family with kids 9. Poor value for money 10. Unfavourable exchange rate 11. Too busy at work 12. There are other more interesting/exotic places to go 13. Personal reasons 14. Prefer to travel within Asia 15. Too far to travel/Flight to Canada is too long (15, 16, 17 tied) 16. Country is too vast to see on one trip (15, 16, 17 tied) 17. Too busy with kids (15, 16, 17 tied) 18. Do not have friends or relatives in Canada (18, 19 tied) 19. Safety concerns (18, 19 tied) 20. Risk of terrorism Source: CTC Australia Consumer and Travel Trade Research, August 2007

262

Long-Haul Countries Visited in Past 3 Years

64%45%

30%19%19%

16%15%14%13%12%12%12%

10%10%

7%7%

AsiaEurope

UKUS Mainland

SingaporeThailand

FranceNew Zealand

ItalyHong Kong

IndonesiaMalyasia

ChinaGermany

CanadaHawaii


Given the distance, it is not surprising that Asia tops the list of places visited in the past 3 years. Canada is well down the list below China and Germany.

263

Long-Haul* Destination PriorityCanada ranks 10th of countries Australians plan to visit.

Rank

1. United Kingdom

2. United States Mainland

3. Thailand

4. Hawaii

5. Singapore

6. Italy

7. China

8. Hong Kong

9. France

10. Canada


*Defined: Long-Haul Market - Australians who have travelled outside Oceania in the past three years and those who say they are very likely / definitely taking a pleasure trip outside Oceania in the next two years.

264

Size Of The Potential Market To Canada (Next 2 Years)









1.4M Australian tourists are planning to visit Canada in the next 2 years.


Source: Global Tourism Watch Australia, 2007

265

Likelihood Of Visiting Canada In The Next 2 Years

6%

12%

31%

33%

18%

Unlike their counterparts from the U.K. and France, Australians are no more likely to be planning an extended stay in Canada than a short stay.



Definitely

Very Likely

Somewhat likely

Not very likely

Not at all likely

5%

10%

27%

34%

24%

Definitely

Very Likely

Somewhat likely

Not very likely

Not at all likely





266


BC MB ON ATL NORTH


Likely to visit region 88% 18% 90% 42% 36%

Size of immediate market for the regions 1,197,000 245,000 1,224,000 571,000 490,000

11

Australians planning to visit Canada are likely to be planning to visit Ontario.



267


90%

88%

67%

59%

42%

36%

27%

37%

36%

8%

10%

4%

5%

1%

Ontario

British Columbia

Quebec

Alberta

Atlantic Canada

Northern Canada




Base: Those likely to visit Canadian in the next 2 years and/or those who are considering have decided to visit or have booked a trip there (n=797).


Australians planning to visit Canada are as likely to be planning to visit Ontario as B.C.

268

Australia - Canadian Visitor Expenditure Profile

Average party size 2.8


Median # of nights 12

Average expenditure per person per trip $4,385.71

Average expenditure per person per night $365.48 11


269

Main Purpose Of TripVisiting friends and relatives accounts for a substantial proportion of travel to Canada.

40%

23%

37% VFR

Sightseeing

Other

Source: CTC Australia Consumer and Travel Trade Research, August 2007 Total Australian travellers to Canada

270

ReferencesTravel Activities and Motivations Survey (TAMS) 2006, Canada and US;ITS 2001-2006 / CTS 2001-2004 data;Travel Survey of Residents of Canada 2006 (TSRC);The OTMPC Brand and Advertising tracking series. (Fall 2007)Quebec Tourism Consumer Research, 2006 Decima ResearchIdentifying Ontario’s Opportunity In The Overseas Travel Markets - Ontario Ministry of TourismGlobal Tourism Watch - October 2008

1. Australia Report 2007 Draft2. France Report 2007 Draft3. Germany Final Report 20074. Japan Report 2007 Draft5. South Korea Report 2007 Draft Copy6. Mexico Report 2007 – Draft

Canadian Tourism Commission1. Australian Consumer and Travel Trade Research Project Summary August 20072. Consumer Research in China – Quantitative Report January 30, 20073. European Consumer and Travel Trade Research Project Summary February 20084. India Consumer and Travel Trade Research Project Summary December 20075. Restoring Canada’s Growth/Yield with the Japanese Travel Market Project Summary July 20076. Mexico Consumer and Travel Trade Research Project Summary September 20077. South Korea Consumer and Travel Trade Research Project Summary 20078. California Market Profile – Air and Auto Leisure Market For Canada 20079. Florida Market Profile – Air and Auto Leisure Market For Canada 200710. Illinois Market Profile – Air and Auto Leisure Market For Canada 200711. Massachusetts Market Profile – The Auto Leisure Market For Canada 200712. New Jersey/Connecticut Market Profile – Air and Auto Leisure Market For Canada 200713. New York Market Profile – Air and Auto Leisure Market For Canada 200714. Texas Market Profile – Air and Auto Leisure Market For Canada 2007

TravelsAmerica– TNS Travel and Leisure Q1&Q2 2008Market and Trade Profile Mexico – December 2006

LimitationsThis research was limited by the availability of data related to specific markets.

ontario tourism market assessment research study - ministry of

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