Alaska Travel Industry Association

Alaska Tourism in the Chinese Market

• Jesse Carlstrom • Travel Trade & International Marketing Manager • Alaska Travel Industry Association

Alaska Travel Industry Association

Al k TTravell Industry Alaska I d t AAssociation i ti • 1,100 Member Association – Diverse makeup

• State’s Official Tourism Marketing Organization – Promote and facilitate travel to and throughout the State of Alaska by executing a global marketing campaign promoting Alaska as a visitor destination

Alaska Travel Industry Association

Chinese Chi Outbound O tb d Travel T lM Market kt • Rapidly becoming the most important outbound tourism market in the world – 40 40.95 95 million illi iinternational t ti l ttravelers l iin 2007 tto, an 18.6% increase over the previous year – 100 00 million o international e a o a travelers a e e s by 2020 0 0

• Growing number of U.S. arrivals – 397,405 , in 2007 – Estimated to reach 579,000 by 2011 Alaska Travel Industry Association

Chi Chinese TTourism i iin UU.S. S • U.S. becoming increasingly popular as well as accessible • In 2007, China ranked 17th largest international market – 397,405 397 405 visitors i it

• Spent $2.56 billon – Average A expenditure dit off $6 $6,000 000 per person Alaska Travel Industry Association

B i to Barriers t UU.S. S EEntry t • Visa requirements pp Destination Status ((ADS)) • Approved – Bilateral agreement • ADS granted to 134 countries and regions i – U.S. does not have ADS

– Framework for developing p g Chinese outbound tourism Alaska Travel Industry Association

N OOpportunities New t iti • December 11, 2007 U.S. & China sign a memorandum of understanding to facilitate Chinese group leisure travel to the U.S. –U U.S. S destinations d ti ti can now market k t iin Chi China – Establishes framework to permit group leisure travel from China to the U.S. • Will not ease individual travel restrictions

Alaska Travel Industry Association

Memorandum M d off UUnderstanding d t di • China requires that policies and procedures be in place to ensure their groups have the best possible travel experience – Thiss iss a role o e ge generally e a y filled ed by tthe e host ost cou country’s t ys government – The U.S. will not fulfill this role Alaska Travel Industry Association

N ti l Tour National T AAssociation i ti • NTA is the only U.S. U S based association to have a tour operator qualification program approved pp by y the China National Tour Administration – Program includes requirements such as access to Chinese-speaking guides, materials, etc. – Alaskan companies include: • All Alaska Tours • Premier Alaska Tours

Alaska Travel Industry Association

U S Travel U.S. T l Promotion P ti Act At • U.S. House recently passed the “Travel Promotion Act” – Legislation now goes to the Senate floor for Final Passage – If passed, will create a government body to promote the U.S. travel industry abroad

Alaska Travel Industry Association

U.S. U S TTravell AAssociation i ti • Privately funded, membership based – Promotes travel to and within the U.S. – Works W k with ith the th U U.S. S governmentt tto ease travel t l procedures – Ron Peck, ATIA President, serves on the board – Recently met with a Chinese delegation in Orlando on behalf of the organization

• Has been a strong g advocate of p passage g of the “Travel Promotion Act” Alaska Travel Industry Association

N Arrivals New A i l • June, 2008 the first groups of Chinese leisure travelers visit the U.S. – Gateway cities such as New York, Las Vegas and L.A.

Alaska Travel Industry Association

Alaska Al k • S Success iin other th A Asian i Markets • Close geographical proximity • Desire to experience: – Glaciers – Mountains – Wildlife – Wilderness Alaska Travel Industry Association

M k ti PPrograms Marketing North to Al k Alaska

Instate

Collateral

U.S. Consumer Marketing

Research Website W b it Development Public Relations

International Marketing

Alaska Travel Industry Association

Travel Trade Marketing

• $11.7 million FY10 Marketing g Budget • 9% dedicated to International Marketing

International Marketing •

Overseas offices – – – – –

•

United Kingdom Germanyy Australia Japan South Korea

Partner with the Governor’s Office of International Trade – China – Taiwan T i

Alaska Travel Industry Association

• •

Trade Focus Media Focus

2008 Vi Visitor it VVolume l • 1.7 million summer visitors – 190,000 from overseas (11%) – Approximately 100,000 from Canada (5%)

• 247,000 Winter visitors

Alaska Travel Industry Association

–5 5,400 400 Japanese – 5,000 other overseas countries

C t i off OOrigin Countries ii International Visitor Volume, Volume Summer 2008 By Region GSE Aust/NZ 20,000 38,000

Asia 18,000

UK 68,000

Mexico 7,000 Other Internatl 10,000

Alaska Travel Industry Association

Other Europe 29,000

• 10% of visitors originate in Asia • 1,000 1 000 Chinese are estimated to visit i it Al Alaska k annually

Al k in Alaska i Chi China • Tradeshows • Training seminars • Travel familiarization tours • Partnerships with tour operators Alaska Travel Industry Association

Xie xie (Thank you)

Alaska Travel Industry Association