Inbound Tourism - US - March 2007

TABLE OF CONTENTS

• Scope and Themes
• What you need to know
• Definition
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Snapshot of the market
• Principle factors driving the inbound tourism market
• Trade interview findings
• What the future holds
• Market Drivers
• Key Points
• 9/11 security concerns tighten travel restrictions to the U.S.
  • Figure 1: World's worst U.S. visa wait times, as of January 16, 2007
• Marketing the U.S.: failures and new opportunities
  • Figure 2: Marketing and promotion of travel and tourism by the governments of other countries, 2005
• 'Blueprint to Discover America'
• Commerce department and TIA create websites in multiple languages
• Commerce department focuses on UK and Japanese tourists
• U.S. faces challenge from global competition
  • Figure 3: International tourist arrivals in ten largest destination countries, 2004 and 2005
  • Figure 4: International tourist receipts in ten largest destination countries, 2004 and 2005
  • Figure 5: International tourist arrivals, by region and sub-region, 2004 and 2005
• Shopping dominates history attractions, sports and culture
  • Figure 6: Overseas travelers to the U.S. leisure/recreation activities, 2005
• Anti-Americanism leveling off
  • Figure 7: Favorable opinion of the U.S., 2001-05
• U.S. Dollar remains weak
  • Figure 8: Key currency rates against the U.S. Dollar, yearly average, 2003-06
• Market Size and Trends
• Key Points
  • Figure 9: Total inbound travelers to the U.S., 2001-06
  • Figure 10: Total international travel and tourism spending in the U.S., at current and constant prices, 2001-06
  • Figure 11: International travel and tourism spending in the U.S., by passenger fares and other travel expenses, at current and constant prices, 2001-06
• Market Segmentation
• Key Points
• Countries and world regions
  • Figure 12: Number of international visitors to the U.S., by country of residency and world region, 2004 and 2006
• North America
  • Figure 13: Total international visitors to the U.S. from Canada and Mexico, 2001-06
• Canada
  • Figure 14: Total international visitors to the U.S. from Canada, 2001-06
  • Figure 15: Travel between Canada and the U.S. versus other countries, August 2001-July 2006
  • Figure 16: Expected loss of Canadian travelers to the U.S. due to WHTI, 2007-10
  • Figure 17: Top 15 U.S. states visited most frequently by Canadians in 2005
• Mexico
  • Figure 18: Total international visitors to the U.S. from Mexico, 2001-06
  • Figure 19: Annual receipts by Mexican tourists traveling to the U.S., 1999-2005
• California remains the top destination
  • Figure 20: Favored destinations for Mexican arrivals, 2005
  • Figure 21: Mode of arrival to the U.S. from Mexico, 2004 and 2005
• Western Europe
  • Figure 22: Total international visitors to the U.S. from Western Europe, 2001-06
• New York City and Orlando top destinations
• United Kingdom
  • Figure 23: Total international visitors to the U.S. from the UK, 2001-06
• British travelers more independent
• Germany
  • Figure 24: Total international visitors to the U.S. from Germany, 2001-06
• New York and San Francisco remain top destinations
  • Figure 25: Favored destinations for German arrivals, 2005*
  • Figure 26: Favorite activities for German arrivals, 2005
• France
  • Figure 27: Total international visitors to the U.S. from France, 2001-06
  • Figure 28: Favored destinations for French arrivals, 2005 *
  • Figure 29: Purpose of trip for French arrivals, 2005
• Italy
  • Figure 30: Total international visitors to the U.S. from Italy, 2001-06
• U.S. a dream destination for Italians
• New York suits Italian lifestyle
  • Figure 31: Destinations visited and purpose of trip for Italian arrivals, 2005
• Italians prefer summer
• The Netherlands
  • Figure 32: Total international visitors to the U.S. from the Netherlands, 2001-06
• Dutch travelers staying longer, spending more
  • Figure 33: Destinations visited and purpose of trip for Dutch arrivals, 2005
• Asia
  • Figure 34: Total international visitors to the U.S. from Japan and South Korea, 2001-06
• Oahu/Honolulu and Los Angeles top destinations
• Japan
  • Figure 35: Total international visitors to the U.S. from Japan, 2001-06
• Frequent travelers to the Americas
• Media-savvy customers
• Tour operators active
• Aging generation also luxury travelers
  • Figure 36: Purpose of trip for Japanese arrivals, 2005
• U.S. targets Japanese tourists for the first time
• South Korea
  • Figure 37: Total international visitors to the U.S. from South Korea, 2001-06
• Relatively low business travel volume
  • Figure 38: Purpose of trip for South Korean arrivals, 2005
• South America
  • Figure 39: Total international visitors to the U.S. from South America, 2001-06
• Brazil
  • Figure 40: Total international visitors to the U.S. from Brazil, 2001-06
• U.S. remains top choice
  • Figure 41: Destinations visited and purpose of trip for Brazilian arrivals, 2003
• Venezuela
  • Figure 42: Total international visitors to the U.S. from Venezuela, 2001-06
• Unrest under Hugo Chavez
• Exchange rates go up as visa restrictions tighten
• Florida primary destination
  • Figure 43: Destinations visited and purpose of trip for Venezuelan arrivals, 2005
• Colombia
  • Figure 44: Total international visitors to the U.S. from Colombia, 2001-06
• Miami primary destination
  • Figure 45: Destinations visited and purpose of trip for Colombian arrivals, 2005
• Argentina
  • Figure 46: Total international visitors to the U.S. from Argentina, 2001-06
• Business travel shrinks less than 50%
  • Figure 47: Destinations visited and purpose of trip for Argentinean arrivals, 2005
• Oceania
• Australia
  • Figure 48: Total international visitors to the U.S. from Australia, 2001-06
• Stable economy fuels outbound market
• Business travel down, leisure up
  • Figure 49: Destinations visited and purpose of trip for Australian arrivals, 2005
• Other developing source markets
• China
• India
• Russia
• Poland
• Supply Structure
• Key Points
• Trends in selling the U.S.
• Online travel affects brick-and-mortar agencies
  • Figure 50: Active home Internet users, by country, December 2006
  • Figure 51: Online leisure/unmanaged business travel sales in the U.S., Europe and Asia-Pacific, 2005
• Consolidation heats up
  • Figure 52: Travel agency sites in the UK, by market share of visits, June 2005
• Package holidays down, tour operators up
  • Figure 53: Share of travel agent vs tour operator package holiday bookings in the UK, 1990-2004
• Convention and visitors' bureaux & other DMOs
• Air, rail and bus providers
• Airlines
• Amtrak
• Greyhound
• Megabus
• Advertising and Promotion
• Key Points
• Overview
• Discover America Partnership
• TIA and the SeeAmerica brand
• USA Travel Guide
• Trek America
• SeeAmerica UK 2006
• SeeAmerica UK 2006
• State advertising
  • Figure 54: Projected international advertising and sales promotion budgets, 2004
• Department of Commerce efforts
• What the Industry Says
• Key Points
• 'War on terror' effect
• Tourist safety seems to be in check...
• ...while visa concerns are threatening a slowdown
• The U.S. Dollar
• For some it is not a necessity to travel
• For the retail market, business is booming
• Is the Federal government doing enough?
• Fuel prices threaten to hinder airline industry
• Health outbreaks and disasters affect tourism
• U.S. competition: is America's game face working?
• The Future
• Key Points
• U.S. government to speed progress promoting America
• Asia-Pacific market to show major growth
• Canada and Mexico to remain strongest markets
• El Salvador will lead in least visitation
• Online travel to become industry standard
• Weak Dollar favors overseas travel to the U.S.
• Border security to impair flow of inbound visitors
• Overhaul of visa program to streamline tourist flow
• Open Skies will ease air flow and open new markets
• Market forecast
• Total international travel and tourism spending
  • Figure 55: Forecast of total international travel and tourism spending in the U.S. at current and constant prices, 2007-11
• Spending on travel expenses
  • Figure 56: Forecast of International travel and tourism spending in the U.S., by other travel expenses, at current and constant prices, 2007-11
• Appendix: Trade Associations