Destination Day

1. Destination Day UK and Ireland January 25, 2009

2. Market Overview • UK market worth $55 billion supporting 88 million travellers* • California’s top overseas market • 830,000 visitors from the UK & Ireland • $968 million annual spend • YTD 2008 figures : • 10.9% increase UK (6.1% for UK visits to USA) • 38.9% increase Ireland • Consumer continues to desire, need and book a major holiday** • * Mintel • ** ABTA/FCO consumer report

3. Economic Trends Global economic crisis – UK & Ireland not immune Job losses and major retail names closing on the high street Pessimistic media environment But… UK independent of Eurozone Travel industry affected but not crippled Holidays are the answer to doom and gloom Eurozone destinations more expensive than ever $ still seen as relatively good value versus £ but especially the Euro

4. Price Waterhouse Coopers conducted consumer spending intention survey in March and November 2008: Debt repayment rose to 1st place (20%) but large holidays sticking close by in 2nd (16%) Short breaks dropped from 2nd to 8th place Higher net worth and higher income families still believe buying a holiday is the top priority (Cultured Explorer demographic) Over 65s are the most determined to prioritize holidays in 2009 with 27% putting holiday spend first, with only 15% focused on unsecured debt repayment (Silver Voyager demographic) PCW Survey 2008

5. Market Overview Strong early bookings for 2009/2010 Recession and high profile failure of the XL group has created a different trading environment Consumers returning to tour operators for traditionally booked holidays The major travel company campaigns for 2009 are much more price and offer led - added value, strong free-night offers Operators and travel companies already looking to 2010/11 programmes and beyond California’s main competitors are still targeting UK market New Zealand $4.41m Australia $5.21m

6. 1.3% incremental travel produced 1.8% incremental travel will be produced including trip planners $500 million dollars in incremental travel revenue already $670 million after those who are planning to visit do so $130 in travel spend returned for every dollar spent $8 in tax revenue returned for every dollar spent New Research: Advertising ROI Source: SMARI post campaign ROI study Dec 2008

7. New Research: Times Results • Four-month partnership with the Times featuring 7 advertorials and engaging and informative micro site Online • 48,559 unique users • 2,302,707 impressions • 9,405 competition entries Tracking • 37% of Times readers aware of advertising • 50% increase in positive awareness of CA attributes • 50% more likely to look for information on travel to CA Recommendations • Continue and expand activity for 2009/10 • Cost effective way of increasing awareness (rose to 71% overall) • Allows for deeper and more targeted messaging than TV • Look to target future partnerships more effectively

8. New Research: Target Markets • Employed TGI consumer database of 16,000 to draw key target markets • Unlike family market these were most likely to cope better with economic downturn • Silver Voyagers • ABC1 45+. Older, more settled and conservative travelers • Consume TV, press and magazine advertising • Seeing the sites, touring, relaxing, golf and spa • Cultured Explorers • ABC1 25-45. Young, ambitious travelers • Watch very little TV but consume outdoor, press and online • City breaks, adventure activities and off the beaten track

9. Places I’d like to visit - ever Places I’d like to visit – medium term Places I can visit this year Deal hunting Booking Inspiration Information Action 2008-2009 Strategy • Build on last year’s success and awareness • Touch the consumer at each point during the purchase journey • Use integrated communications and multi-layered channels to create desire, understanding and to overcome common barriers to travel 3--6 month process TV Outdoor Press Partnerships visitcalifornia.co.uk PR/Communications Press Partnerships BA Partnership Trade Activity

10. 2009-2010 Marketing Plans UK & Ireland

11. Strategy Strong results and excellent ROI suggest that our strategy is right for this market Resilient UK market still profitable Shift focus due to economic climate Look to change/refresh key creative for 3rd year cycle Inspire TV versus other media Test and use refreshed TV creative Migrate to more localized print campaign Inform Continue press partnership model in light of strong results Use reduced advertiser spend to leverage more editorial Act Look to partner with the trade to push sales Extend BA partnership across other media channels Develop CRM to use growing database 2009/10 Brand Strategy

12. Brand Strategy • Years 1 & 2 have seen activity aimed primarily at spring & summer markets • Fall & winter market 39% • Exchange rate & falling brand count means funds are available for 2nd burst of activity • Ski and non-ski • Press activity highlighting California’s winter sun • CRM activity aimed at long lead family market Irish market • Radio campaign with trade partners • Establish PPC campaign during key months Niche Markets • Luxury, Golf, LGBT

13. Technology Online elements to support consumer, trade and media initiatives CMS upgrade SEO to reduce PPC spend Travel Trade Banner advertising and enhanced online agent listing, easy-to-use online Trade Portal Media Interactive media resource portal Consumer Online competitions to drive data collection, downloadable itineraries to promote California diversity, Events Calendar Web Site development Review existing Web site to ensure compliance with design, quality and technical standards Technology Strategy

14. Communications Strategy • Cultured Explorers • Online sites – national press sites in excess of 20 million unique users • Cooler opinion forming titles • Insider’s guide to California with A Hedonist’s Guide to… • Travel Blueprint – California feature in Wanderlust • Silver Voyagers • Radio promotions • Female lifestyle magazines • Reader event with House & Garden at Vogue House 2009 2010 Q2 Q3 Q4 Q1 Q2 Q1 Classic FM promotion Good Housekeeping subscription offer Ski group trip Off the Beaten Track group trip Urban California – Guardian Unlimited House and Garden reader event Hedonist’s Guide to…California Wanderlust – Travel Blueprint

15. Travel Trade Strategy UK Trade Continue to complement brand activity and push sales Higher level of product awareness with product managers/decision makers Higher level destination knowledge at booker level Develop marketing tools that assist the UK trade to sell California California Trade Ensure that California is competitive versus other major destinations Ensure the CA industry is educated of the benefits and opportunities of understanding and working closely with the UK market Target audiences Silver Voyagers Premium Families Cultured Explorers All sectors of the UK & Irish travel trade

16. Travel Trade Strategy: Key Elements Consumer 3-4 trade co-op campaigns with key operators to reach Silver Voyager and Premium Families Target activities to audience brochure inserts for Silver Voyagers or direct mail activities for Premium Families Greater trade activity and call to action on UK Web site offers, trade adverts, more direct links to purchasable product Expand program of consumer shows Trade Enhance trade section of UK Web site to create greater B2B interaction online image libraries, communication tools, brochure wordings Develop familiarization programme to include CA industry education seminars and B2B activities Build on redeveloped online training programme to add new modules and content Greater trade press activities including incentives and collateral distribution

17. California’s largest market and growing ensures strong ROI Competitive landscape needs attention Dedicated California Office & full service agency Marketing Program Planner (MPP) at tourism.visitcalifornia.com/mpp or individual contracting Travel Trade Opportunities exist to take part in full trade representation 2010 Sales and Media Mission - April 2010 Three-day market place program in UK & Ireland One-on-one appointments with product managers Media networking event with key journalists and travel editors All key UK trade and media pre-PowWow 2009 SuperFam - September 2009 Following the success of inaugural program with British Airways already confirmed Opportunities to host up to 15 agents Opportunities to pitch for finale event Partnering with CTTC UK

18. 2009 WTM and VIP Event, November 8-12 Delegate space at the UK’s largest travel trade event Larger stand creates space for 22 delegates Be part of the California VIP Film Premiere on Sunday prior the WTM attended by150 key UK/Irish trade and media Full management, hosting and support offered by CTTC and UK office Group Fams 2 product fams a year opportunities to host key trade Geographically or themed (ski, luxury, culinary) Market Intelligence Brochure analysis Weekly, monthly reporting Collateral Distribution Brochures and travel planers at trade and consumer shows Available to the public Image and content supply and management Partnering with CTTC UK

19. Communications 2 themed group press trips per year 2010 Sales and Media Mission - April Full pro-active PR representation Consumer & Technology Presence on visitcalifornia.co.uk Enhanced content Creation of hot spots and banner advertising on consumer and trade portals Full creative services for UK programs Partnering with CTTC UK