The Power of International Travel

Industry Briefing The Power of International Travel

International Travel Update The Importance of International Tourism – and Why You Should Care

Presented by: julie heizer National Travel & Tourism Office International Trade Administration U.S. Department of Commerce

National Travel & Tourism Office, International Trade Administration, U.S. Department of Commerce

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Visitor Volume 2018 (millions)

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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Visitor Volume Percent Change 2017 to 2018

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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Visitor Volume Change 2017 to 2018

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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Visitor Percent Change 2019 YTD vs. 2018 YTD January-August (Canada Jan-Jul; Total/Mexico Jan-Jun)

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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Visitor Spending 2018 ($billions) June 2019 release

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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Visitor Spending Percent Change 2017 to 2018 (%) June 2019 release

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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Visitor Spending Change 2017 to 2018 ($billions) June 2019 release

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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U.S. Visitor and Spending Trends (millions / $billions)

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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Top Ten Country Rankings of Global Receipts and Visitors (excludes passenger fare exports)

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

(billions / $millions)

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Trends We Watch Miscellaneous

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UNWTO in/out—Global inbound growth continues, ahead of UNWTO schedule of declining growth rates to 2030.

2016:+3.6%; 2017: +7.0%; 2018: +5.6%. 2019 forecast is return to more typical +3% to +4%. Two-year lag in country-level outbound volumes. 2018 total outbound spending (in own country currency) was up for most top USA origin countries (not Brazil, Argentina).

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USA Arrivals—up 0.7% in 2017; Up 3.5% in 2018. Uneven performance across the top origin markets for both years.

2019 is off to a very uneven start. Overseas up, Canada and Mexico both down big.

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Airline Capacity—Very uneven expectations for first half of 2020.

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APIS—a citizenship-based census count of all persons entering the USA via air

USA outbound visitor volume was up 9% in 2018, nearly as much YTD 2019....and thus using seats. This combined with key countries with major transit hubs makes this data less useful when updating the travel forecast. regardless of residence or purpose. The non-USA citizen count was consistently up 3.5% to 4.5% throughout 2018. Softer start to 2019. Note: includes U.S. non-citizen residents returning home, and foreign travelers in transit through the U.S. to other country destinations.

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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Trends We Watch continued

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Electronic System for Travel Authorization (ESTA): Interest in visiting the U.S. from VWP countries is flat over the past 12 months; 2018 ended up 1.8%. 2019 up 0.6% through June.

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BrandUSA—The USG match of up to $100M is capable of being fully funded moving

forward based on ESTA fee collections. Excess of about $52M on 12-month moving sum.

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IMF country-level forecasts—semi-annual database release.

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U.S. visa issuance—FY18 (Oct-Sep) U.S. Department of State visa issuance was

April 2019 release basically the same as October 2018 release. Probably same for upcoming October 2019 release. down -9%...and is down -21% over the past three FYs.

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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The NTTO Travel Forecast Update 2019 Forecast (October 2019)

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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The NTTO Travel Forecast Update 2019 Forecast (October 2019)

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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The NTTO Travel Forecast Update 2019 Forecast (October 2019)

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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The NTTO Travel Forecast Update 2019 Forecast (October 2019)

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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The NTTO Travel Forecast Update 2019 Forecast (October 2019)

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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The NTTO Travel Forecast Update 2019 Forecast (October 2019)

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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The NTTO Travel Forecast Update 2019 Forecast (October 2019)

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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The NTTO Travel Forecast Update 2019 Forecast (October 2019)

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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The NTTO Travel Forecast Update 2019 Forecast (October 2019)

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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The NTTO Travel Forecast Update 2019 Forecast (October 2019)

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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International Visitors to the U.S. and Projections (2000-2024) 2019 Forecast (October 2019)

millions of international visitors

Sources:

U.S. Department of Commerce, ITA, National Travel and Tourism Office; INEGI (Mexico); Statistics Canada. -- 2019 Travel Forecast (October 2019)

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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Hotel-Motel Room Nights (millions) assumes 1 room/party

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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Sooooooo … what ABOUT Atlanta?

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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H/M room-night AtlantaHow anddid International Travel volume decline?

I thought U.K. volume went up in 2018?...

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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International volume— annual data

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International share— annual data

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International top markets— 2016-2018 combined data

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International traveler profile— Atlanta based on 2016-2018 combined data; Overseas based on 2018 data.

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How didVOLUME H/M room-night International to Atlantavolume decline?

I thought U.K. volume went up in 2018?...

thousands of visitors

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International volume to Atlanta –

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

Mexico (air) available starting 2004, since then...

• 485,000 2003 •

892,000

2015

•

744,000

2018

–

Mexico (land) not available, but would be negligible.

–

Canada (also 1+ nights) not available at city level, but was 408,000 to Georgia in 2015. Likely about same level in 2018 given overall volume trends.

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did H/M room-nightVolume volume decline?

AtlantaHow SHARE of International I thought U.K. volume went up in 2018?...

Atlanta share of overseas visitors

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International share to Atlanta – highest in early 00s – higher for repeat (1.8%) than 1st-time (1.5%) – higher for business (net) (3.6%) and convention (net) (3.0%) than for leisure/VFR (net) (1.4%) and vacation (net) 1.1%) – higher for India (4.4%),

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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Atlanta Top International Markets (all other countries <2%)

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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Trip Planning and Decision Timing

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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Selected Key Traveler Characteristics

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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USA Port of Entry (all other ports <1%)

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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Transportation Modes

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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States Visited

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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States Visited (continued) (all other states <1%)

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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Activities in USA During Trip (not collected at a state level)

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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Activities in USA During Trip (continued) (not collected at a state level)

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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Key Takeaways...

1) Global travel remains robust based on the sum of country arrivals and 2019 outbound spending. Growth in 2019 may be lower, but lower from higher-than-originally-forecasted levels.

2) USA volume increased in 2018 to a record level, but country performances were uneven.

2019 change metrics through August are very uneven...including many declines.

3) NTTO forecast calls for a new volume record in 2020...and growth to continue through 2024.

Five countries will account for nearly 58% of the growth over the forecast period—Canada, Mexico, U.K., China, and India.

4) As with all destinations, the Atlanta visitor profile shows similarities and differences versus the national averages.

-- Atlanta’s top origin markets are the U.S.’s top markets, but Germany and India higher.

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Don’t forget about Canada, for which NTTO does not have city-level data.

ATL the POE for half of Atlanta overseas visitors...it ISN’T for half.

Atlanta visitors visit elsewhere, confirmed by higher use of air travel within the USA.

National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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How to Find Us

https://travel.trade.gov julie heizer National Travel & Tourism Office U.S. Department of Commerce Phone: 202 482 4904 julie.heizer@trade.gov Find emails for each NTTO staff member at: https://travel.trade.gov/about/overview.asp National Travel and Tourism Office, International Trade Administration, U.S. Department of Commerce

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DELTA AIR LINES, INC. Brad Sill General Manager, APAC Strategy

SUPERIOR EXPERIENCE

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Delta Uniquely Placed to Meet Growing Demand Consumers increasingly look for connections to other people, places, and cultures Consumer shift from goods to services continues to grow Share of Personal Consumption Expenditures (1980-2018)

69%

Experiential services are driving growth â&#x20AC;&#x201C; particularly air & foreign travel Growth in Personal Consumption Expenditures (2007-2017) GDP: +35% Overall PCE: +37%

+54%

54% +45%

46% 31%

1980

+63%

1989

1998 Goods

2007 Services

2018 YTD

+48%

+23%

Goods

Services

Experiential Services

Air Travel

Foreign Travel

From #1 Airline to Beloved Brand #1 U.S. Carrier

Network

U.S. Market Share Baggage Handling

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ATL Passengers Flying Internationally

2018 Statistics

107

101

89

88

Passenger Daily Each Way (PDEW)

CA730

87 11%

APAC

1,111

17%

2,671

EMEAI

42%

41%

LAC

2,612

Atlanta a Key Destination for Travel and Cargo − 15% of DL capacity from ATL is international, with +90 departures per day − 25% of DL passengers on our international flights originate and disembark in ATL − DL carries 105M tons of cargo business between ATL and international destinations

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THANK YOU

The All-Feather Association

ACVB Industry Briefing The Power of International Travel

October 15, 2019

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IPPE Overview IPPE has 72 years of history in Atlanta, currently utilizing all buildings of Georgia World Congress Center.  2019 had 600,732 sq. ft. 1,426 exhibitors and 56,000 sq. ft. of additional floor space for food courts, lounges, onfloor meeting space and activity areas.  32,645 Attendees – 8,830 internationals from 133 countries; 23,815 represented by all 50 states & DC  13,932 guests in hotel room blocks (plus 1000 rooms for students and NPFDA)  53 Hotels in block, downtown, midtown, airport, Buckhead and Galleria area  $46.3m economic impact 

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2019 IPPE International Attendee Breakout 4.54% 1.11%

5.49%

South America Central America/Caribbean

24.87%

11.94%

Mexico Canada Europe 7.13%

Asia

Latin AmericaOceana 42.1% Middle East

19.72%

10.06%

Africa

15.14%

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Top Countries Represented

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10 Year Attendee Trend 40000 35000

32,64 5

30000 25000

5448

20000 15000

2010; 3866

4371

4142

2011

2012

7245

7280

2015

2016

8018

7093

2017

2018

8830

5456

10000 5000 0 2010

2013

Domestic

2014

2019

International 55

International Visitors      

1,300 part of the U.S. Department of Trade & Commerce International Buyers Program Easy transportation through Atlanta Shopping, culture and entertainment Hospitality and welcoming environment Welcome reception at Georgia Aquarium New attendee first time to Atlanta or even U.S.

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Thank you to our Sponsors!

Fox Theatre

Kilgore Music Entertainment

Adult Big Wheel Group

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12 Mile Company