Update on U.S. Tourism Strategy Mandala Research

1. Update on U.S. Tourism Strategy Mandala Research

2. Tourism is the #1 Service Export “Tourism is the number one service we export.” Tourico Clients: Thanks to you

3. Travel Promotion Act of 2009 • Signed by President Obama March 4, 2010 • Establishes an independent nonprofit Corporation for Travel Promotion: • To promote the U.S. to world travelers • To augment USG communications on entry/exit policies Corporation Website: http://www.thebrandusa.com/

4. U.S. National Travel and Tourism Strategy • Executive Order 13597 on 1/19/12 by President Obama • Created Task Force on Travel and Competitiveness • Called for National Travel and Tourism Strategy • Travel and Tourism Advisory Board was tasked with creating the strategy

5. Year to Date May 2012: Nine of the Top 20 Countries Registered Double-Digit Increases Source Department of Commerce OTTI

6. Enabling and Enhancing Tourism to the U.S. • Enhancing US visa processing to meet the expected growth in demand • Response: • State Department is adding 50 new consular positions in China and 60 new adjudicators in Brazil in 2012. • State Department investing millions of dollars to expand facilities. • In FY 2013 – • New consulate building in Guangzhou • Establish visa processing at the consulate in Wuhan • Expand other facilities in China to increase interview capacity by more than 50 percent. • The U.S. will establish new consulates in Belo Horizonte and Porto Alegre in Brazil. Forecasted increase in overseas travelers 2011-2016 who REQUIRE a Visa for entry Forecasted increase in overseas travelers 2011-2016 who DO NOT require a Visa for entry 53% 17%

7. Visa Waiver Process is Being Expanded • Expanding the Visa Waiver Program(VWP) • Currently 36 participating countries • July, 2012, Department of Homeland Security announced a Statement of Intent to establish a Visa Waiver Program (WWP) Working Group with Brazil

8. Entry Process Aimed at Improving the Process for Travelers • Expanding Trusted Traveler Programs • Provide expedited clearance for pre-approved low-risk travelers • Over 1M eligible users enrolled in Global Entry Program • Kiosks at 37 sites, reduce inspection staff hours • Expedited screening initiatives and improving the processes for arrivals and aviation security • DHS established Model Ports Initiative in 20 of the busiest airports across the county to improve customer experience during US admissions process • Enhanced Queuing • Improved signs for international visitors • Wait-time monitoring and reporting • Passenger Service Manager Program (PSM) • Training • Communications • Surveying of travelers • Nov 2011 survey found that 90% of travelers had a positive feeling about the US after experiencing the entry process, officers are welcoming and entry process time is short or reasonable

9. Industry has a BIG Role: Travel and Tourism Advisory Board

10. A Coordinated Effort Months of discussion and drafting by TTAB members along with colleagues at a variety of US federal departments produced a blueprint for success

11. Increasing Jobs by Increasing Visitors This National Travel and Tourism Strategy establishes an overarching goal of increasing American jobs by attracting and welcoming 100 million international visitors, who we estimate will spend $250 billion, annually by the end of 2021. We will also encourage Americans to travel within the United States and its territories to see all that our country has to offer.

12. These are Several Strategies to ACHIEVE THIS GOAL • Three of the Key Strategies include: • Promoting the United States • Enabling and enhancing travel and tourism to and within the United States • Conducting research and measuring results

13. Promoting the United States – Brand USA Land of Dreams

14. Helping You Sell the U.S.A. as a Destination • Public/Private Partnership • Multi-Channel Marketing • Television • Web • Print • Digital • Social • Twitter • Facebook • YouTube • Pinterest

15. The Composition of International Visitors is Changing Quickly The number of overseas travelers from countries whose nationals require U.S. visas increased 34 percent from 2006 to 2011 and is forecasted to increase by 53 percent from 2011 to 2016. The number of overseas travelers from countries whose nationals do not require visas increased only 26 percent and is forecasted to increase by 17 percent. In the next five years, countries whose nationals require visas are expected to have the highest growth rates in travel to the United States, including China (+198 percent), Brazil (+70 percent), and Argentina (+46 percent).

16. The Composition of International Visitors is Changing Dramatically The combined visitation levels of Brazil, China, and India grew 159 percent between 2000 and 2011, while total international arrivals increased 22 percent and total overseas arrivals increased seven percent over the same period. (DOC/OTTI)

17. And USA is Making an Investment To Accommodate This In anticipation of continued high growth in demand for visas, State Department is investing millions of dollars to expand facilities. In FY 2013, it plans to open a new consulate building in Guangzhou, establish via processing at the consulate in Wuhan, and expand other facilities in China to increase interview capacity by more than 50 percent. The U.S. will establish new consulates in Belo Horizonte and Porto Alegre in Brazil. Bem-vindo à América 미국에 오신 걸 환영합니다 ¡Bienvenidos a los Estados Unidos de América!

18. Time is Money: The Less Time, The More Money Brazil and China are both large markets where visa processing capacity has grown to meet sharply-rising demand. State is issuing more visas than ever before. In the first six months of 2012, demand for tourist and short-term business visas in Brazil increased 48 percent over 2011, and in China, demand increased by 38 percent. The State Department is adding 50 new consular positions in China and 60 new adjudicators in Brazil in 2012.

19. Measurable Progress in China and Brazil – Wait Times Decrease . Wait times for interviews at the five visa granting missions in China have fallen from as long as 100 days in 2010 to current wait times that are typically two days or less. In the first four months of FY2012, the number of visa processed in China grew by 33 percent. Wait times in Brazil have declined from 100 days to 2 weeks in some locations. Number of Visas processed in 2012 have increased by 62%

20. A REALLY Bright Spot for the US Economy – up 8% from May 2011. This caps 29 straight months of growth. Miami International Airport is a great example of the increase in international visitors. Table below Source: GMCVB

21. Leaders in International Travel and Tourism Revenue In 2011, the travel and tourism industry generated $1.2 trillion and supported 7.6 million jobs. Real travel and tourism spending grew 3.5 percent in 2011,outpacing the 1.7 percent growth rate for the economy as a whole. The United States leads the world in revenues from international travel and tourism and ranks second in the number of international visitors. In 2011, 62 million international visitors came to the United States and spent a record $153 billion on U.S. travel- and tourism-related goods and services, which are counted as U.S. exports. Source Department of Commerce OTTI

22. 1 in 8 American Jobs is Supported by Travel 1 in 8: American jobs (private sector) supported by travel 14.4 million: The total number of American jobs supported by travel 33: The number of overseas visitors that create one American job

23. Tourism Gets U.S. Back To Work • 287,300 new jobs • Contributing 7.2 percent of overall job growth since early 2010. • Outpacing other industries in employment recovery.

24. Year to Date May 2012: Nine of the Top 20 Countries Registered Double-Digit Increases Source Department of Commerce OTTI

25. U.S. Visitors & Spending (1997-2011) Visitor spending (receipts) closely mirrors visitor volume. Visitor volume was a record 62.3 million, while spending was a record $153 billion in 2011. Sources: Department of Commerce, Office of Tourism Industries; Department of Commerce, Bureau of Economic Analysis; Statistics Canada; Banco de Mexico.

26. International Visitors to the U.S. and Projections (2000-2016) Arrivals in Millions Sources: U.S. Department of Commerce, ITA, Office of Travel & Tourism Industries; Secretaria de Turismo (Mexico); Statistics Canada. -- April 2012 forecast

27. Some of Our Clients

28. Mandala Research Insights - Strategy - Results Laura Mandala, 703.820.1041 Laura@MandalaResearch.com