PEI Tourism Performance

Transcription

1 PEI Tourism Performance Chris Jones Director of Strategic Initiatives Department of Economic Development and Tourism November 27, 2015

2 Presentation Outline Tourism Performance and Trends Main Results of the 2014 Exit Survey 2015 Outlook

3 Tourism Performance and Trends

4 Number of Arrivals (billion) World Tourism Inbound tourism International Tourist Arrivals and Growth Rate during the Period from 2010 to (+6.5%) 997 (+5.1%) 1,038 (+4.1%) 1,087 (+4.7%) 1,138 (+4.7%) Fifth consecutive year of robust growth International tourist arrivals (overnight visitors) hit a record billion worldwide in 2014, up from billion in Demand continued to be strong in most source markets and destinations, despite ongoing geopolitical, economic and health challenges in some parts of the world. Source: UNWTO, World Tourism Barometer, Volume 13, January 2015.

5 Rebounding Consumer Confidence Low Fuel Prices Favourable exchange rate Geopolitical uncertainty Canada s Reputation Economic Impact of Tourism 2014 Factors Influencing Tourism

6 Consumer Confidence Aug 15 Sep 15 Oct 15 CANADA Atlantic QC ON SK/MB AB Prairies (SK/MB/AB) BC Index of Consumer Confidence by Region, All Respondents (index, 2014 = 100) Source: The Conference Board of Canada

7 Consumer Confidence Improving but still not back to pre-recession levels Index of Consumer Confidence by Region, All Respondents (index, 2014 = 100) Source: The Conference Board of Canada

8 Low Prices Fueling Tourism That s about $1,500 per family, or almost enough for three Timmy s coffees per day for a year, BMO senior economist Sal Guatieri on decreased fuel prices in Source: Gas Buddy

9 Exchange Rate Influence YTD September US Trips to Canada (inbound) up 8.2% YTD September Canadian Trips to US (outbound) down 15.4% Source: Bank of Canada

10 Canada #1 Country to Visit The 2015 Country RepTrak report* ranked Canada as the country with the No. 1 best overall reputation in the world! Canada s top ranking in the 2015 Country RepTrak report is a testament to the global desire to come and visit our country and we re honoured by the recognition - Jon Mamela, CMO, Destination Canada 2015 Country Rank 1 Canada 2 Norway 3 Sweden 4 Switzerland 5 Australia 6 Finland 7 New Zealand 8 Denmark 9 Netherlands 10 Belgium *The 2015 Country RepTrak report is based on the online answers from 26,000 consumers in the G8 countries and focuses on the 55 countries around the world with the highest GDP.

11 Tourism Fuels Prosperity Tourism is a Trillion $ global business* 3 Billion dollars per day 2 Million dollars every minute 1 in 12 jobs worldwide $86 billion in 2013 in Canada, representing 618K jobs** Overseas travelers aged 24 and under surged 24% to represent 20% of all travelers to Canada Sources: * UNWTO Annual Report 2014 ** Destination Canada

12 Canada YTD to September 2015 Overall trips from all non-residents up 7.7% Overall trips from the U.S. up 8.2% Overall trips from Europe up 3.9% Overall trips from Asia up 7.2% Overall trips from China up 9.6% Overall trips from Japan up 5.5% Source: Statistics Canada Service Bulletin International Travel: Advance Information Note: The above numbers include both same day and overnight trips.

13 Number of Visitors (million) In 2014, Canada received approximately 25.6 million international visitors, up 1.6% over Of 25.6 million international visitors to Canada, million were overnight visitors, up to 3.2% over During the period from 2010 to 2014, two years (2010 and 2013), international visitors slightly declined, -0.1% and -0.4% respectively (-0.1%) 25.1 (+1.0%) 25.3 (+1.0%) Canada International Visitor Arrivals and Growth Rate during the Period from 2010 to (-0.4%) 25.6 (+1.6%) Source: Statistics Canada, International Travel: Advance Information ( )

14 Atlantic Canada Tourism

15 Nova Scotia YTD to September 2015 Visitor entries up 6% Visitor entries by road up 9% Overall room-nights sold up 2% Overall site-nights sold up 1% Airport activity up 2% Source: Nova Scotia Department of Economic and Rural Development and Tourism

16 New Brunswick YTD to September 2015 Overall room nights sold down 1% Room nights sold to New Brunswick residents down 2% Room nights sold to U.S. and International visitors up 6% Room nights sold to Canadian non-resident visitors down 1% Provincial Park campsites sold up 6% Source: New Brunswick Department of Tourism and Parks

17 Newfoundland and Labrador YTD to September 2015 Non-resident auto visitors up 4.5% Air visitors up 1.8% Fixed-roof occupancy rate down 0.3% point (YTD to August) Marine Atlantic passenger traffic up 4.8% (both directions) Source: Newfoundland & Labrador Department of Tourism, Culture and Recreation

18 Prince Edward Island Performance Non-Resident Visitors Traffic Accommodations Key Markets Key Segments 2014 Economic Impact

19 The BUILDING BLOCKS of our Research (External Sources) Traffic Attendance, etc. Surveys / Research STRAIT CROSSING LTD NORTHUMBERLAND FERRIES TRAFFIC CHARLOTTETOWN HARBOUR AUTHORITY CHARLOTTETOWN AIRPORT AUTHORITY SABRE DATA (AIR PASSENGERS) PARKS CANADA MEETINGS AND CONVENTIONS PEI GOLF PEI DESTINATION CENTRES TRAVEL INTENTIONS SURVEYS (ACTP) TRAVEL CONVERSION SURVEYS (ACTP) STATISTICS CANADA CONFERENCE BOARD OF CANADA OTHER SECONDARY RESEARCH Self-Serve Statistics Passengers Statistics Meetings on from from Lanes Enplanements and Passengers Green Ticketing Conventions, Statistics Gables, and System and Crew Province # Deplanements of Delegate Manual Air # Parties Sailings Non-Member Passenger Counselled Vehicles / # Cancellations, Origins Rounds, / Passengers Statistics # Member #Passengers Statistics Rounds at Attended Lanes License Capacity House, Upcoming Cruise Campground Passenger Plate Ships Statistics Meetings Origins Recognition / # Cancellations and Conventions Park s Statistics (Camera) Entry Statistics Points

20 The Building Blocks of our Research (Internal Sources) Occupancy Attendance / Calls Surveys OPERATORS OCCUPANCY Online PUBLICATION REQUESTS enewsletter SUBSCRIPTIONS GOOGLE ANALYTICS VISITORS INFO CENTRES CALL CENTRES HERITAGE SITES TRAVEL INTENTIONS SURVEYS TRAVEL CONVERSION SURVEYS PEI EXIT SURVEYS ROOM RATE SURVEY ECONOMIC IMPACT SOCIAL MEDIA CRM - CUSTOMER RELATIONSHIP MGT AD HOC RESEACH Room Statistics Online Nights Statistics on Subscriptions Sold, (e.g. Site Sessions Nights and Sold, & Users, Automation Acquisition, Number Engagement Parties Number Counselled of Visitors Statistics of on Publications Calls Facebook, Each Sent TPEI Twitter, and Phone Place Origin Activities Behavior, Customer of Party, (Open Conversion, Relationship Motorcoach Rates, Geo Clickthrough Management Location, Room Rates, Keyword Bounce of YouTube, Number, Residence Queues, Pinterest Duration Nights, Rates, Searches, Unsubscribes) Unit etc) Nights Available

21 Non-Resident Visitors

22 Number of Non-resident Visitors Trends in Visitation during Shoulder Season 268,265 (-2.1%) 261,133 (-2.7%) 257,595 (-1.4%) 258,941 (+0.5%) 252,221 (-2.6%) 269,500 (+6.9%) Avg. growth rate for fall shoulder season: +1.4% Avg. growth rate for spring shoulder season: +2.5% 178,943 (-1.5%) 180,993 (+1.1%) 170,186 (-6.0%) 189,353 (+11.3%) 202,596 (+7.0%) 205,928 (+6.9%) Sep-Oct Fall Shoulder Season May-Jun Spring Shoulder Season Source: Centre for Tourism Research, PEI Tourism Volume Estimation

23 Performance of Traffic Bridge. Air. Ferry. Cruise. Motorcoach.

24 Overview - YTD to October Significant increase in Motorcoach ONS, Bridge and Ferry traffic as compared to Positive growth compared to the last 5 years average. YTD to October 2015 vs vs. Last 5 Years Average Bridge +6.0% +5.0% Air -1.9% +5.2% Ferry +9.1% +3.9% Cruise -2.5% +8.1% Motorcoach Overnight Stays (YTD to Sept) +8.6% +19.4% Strait Crossing Ltd (Bridge), Charlottetown Airport Authority (Air), Northumberland Ferries Ltd (Ferry), Charlottetown Harbour Authority (Cruise), Tourism PEI ITS (Motorcoach)

25 Performance of Accommodations Fixed Roof. Campground.

26 Fixed Roof Room Nights Sold 2015 Occupancy Highlights (YTD to Sep) Two (2) consecutive years of growth. +0.5% growth this year compared to last year. +5.8% growth since Campground Site nights Market Four (4) consecutive years of growth. +4.7% growth this year compared to last year. 50% growth since Growth in ONS. Quebec (+6.2%), Ontario (+2.7%), and New England (+4.3%). Source: Tourism PEI (ITS) (Occupancy) September occupancy at compliance rate of 99.9%.

27 Occupancy (Yearly Trends) +1.5% -1.6% -0.2% +1.2% +6.4% +1.0% -0.9% -1.9% -0.8% +5.5% +2.7% -3.5% +4.2% +6.1% +8.4% Fixed Roof 570, , , , ,882 Campsite 230, , , , ,218 Total 800, , , , ,100 Source: Tourism PEI (ITS) (Occupancy) September occupancy at compliance rate of 99.9%.

28 Occupancy - Overall YTD to September Occupancy (1) Fixed Roof RNS Campground SNS Overnight Stays 2015 vs 2014 % Change (Variance) +0.5% (+2,758) +4.7% (+12,363) +2.0% (+15,121) 2015 vs Last 5 Years Avg. +3.5% +16.2% +7.6% Source: Tourism PEI (ITS) (Occupancy) (1) September occupancy at compliance rate of 99.9%.

29 60% 50% 40% 30% 20% 10% Occupancy Rate (YTD) by Star Rating (All Accommodation Types) Higher Occupancy Upward Trend Lower Occupancy Downward Trend 51% to 53% 44% to 47% 33% to 30% Star Star 5 Star Star Star 0% 10 year avg ( ) 2015 Source: Tourism PEI (ITS) (Occupancy)

30 Performance of Key Markets Nova Scotia. New Brunswick. Ontario. Quebec. United States (New England & Mid-Atlantic)

31 2015 vs Occupancy by Market YTD to September Fix Roof RNS Campground SNS Overnight Stays Quebec +3.9% +10.3% +6.2% Ontario +1.2% +10.3% +2.7% US - New England +4.6% +2.8% +4.3% Nova Scotia -3.0% -1.3% -2.5% New Brunswick +0.8% -4.7% -0.8% US - Mid-Atlantic -6.8% +16.5% -3.4% Source: Tourism PEI (ITS) (Occupancy) September occupancy at compliance rate of 99.9%.

32 2015 vs Bridge Traffic by Market YTD to October Traffic Source: Strait Crossing Ltd. Ontario +17.8% Quebec +4.8% Other Canada +49.1% US - New England +6.8% Other US +17.0% Nova Scotia -9.3% New Brunswick -6.3%

33 Performance of Key Segments

34 Millenials Who are they? Born between % OF CANADA S WORKING POPULATION

35 Millenials How are they quantified? M Canadians age group (23% of all Canadians) $165B in global tourism receipts 187M international trips 20% of global travel Number of international trips forecast to double by 2020 Millennials value travel as a life experience more than any other travel segment Tech Savvy and heavy users of social media 9/10 have Facebook (8/10 Gen Xers & 7/10 Baby Boomers) Source: CTC, Canada Millennial Domestic Travel Summary Report, March 2015

36 Millenials How are they quantified? Average 3.7 Out-of-province pleasure trips of 3 or more night over a three year period (1.7 trips within Canada, and 2.5 trips abroad). July is the most popular month to travel. Cost conscious, but travel for longer periods. Average spend per trip within Canada is $1,500 Incidence of travel varies by province. Ontario and Atlantic Canadian Millennials take more trips than the rest of Canada. Quebec takes the least. Source: CTC, Canada Millennial Domestic Travel Summary Report, March 2015

37 Millenials Driver for Future Growth

38 Millenials Travel Preferences Main Trip Drivers (Canada) (1) Outdoors Culture Spectator Sports Theme Parks Historic Sites Culinary Shopping Preferred Travel Activities (Canada) (1) Eat & drink local food Visit popular attractions Visit cultural attractions Relax on the beach Meet local people Visiting friends and relatives Attend festivals & events Get off the beaten path Hiking Top Travel Activities in PEI (2) Sightseeing/driving tour Sampling local culinary products Shopping for local crafts/souvenirs/antiques Going to a beach Visiting friends and/or relatives Visiting historical and cultural attractions Visiting a national or provincial park Sources: (1) CTC, Canada Millennial Domestic Travel Summary Report, March 2015 (2) Centre for Tourism Research. Exit Survey 2014

39 Millenials Travel Advocates Source: comscore Mobile Metrix, June 2014

40 2014 Economic Impact

41 2014 Economic Impact $401.5 Million - Direct Expenditures (1) $418.2 Million Indirect & Induced Expenditures (2) $98.9 Million in Direct Wages and Salaries (2) 7,741 Full Time Equivalent Jobs (2) $59 Million in Provincial Taxes (2) $2.6 Million in Local Taxes (2) 6.4% contribution to Provincial GDP (2) Sources: (1) Centre for Tourism Research (2) Econometric Research Ltd. Economic Impact of Tourism Expenditures in PEI

42 Main Results of the 2014 Exit Survey

43 Overview of Markets Same-Day vs. Overnight Overnight 90.5% 91.4% 93.1% Same Day 9.5% 8.6% 6.9% Significant change Source: Centre for Tourism Research. Exit Surveys 2007/08, 2012 and 2014

44 Overview of Markets First Time vs. Repeat Visitors Repeat 78.8% 80.6% 80.7% First Time 21.2% 19.4% 19.3% Significant change Source: Centre for Tourism Research. Exit Surveys 2007/08, 2012 and 2014

45 Primary Feature that Attracted Repeat Overnight Pleasure Visitor Parties to PEI 63.1% 61.3% 58.2% % 18.4% 14.1% n/a 2.6% n/a 5.0% 4.2% 4.8% 2.2% 3.6% 2.0% 1.4% 1.9% 2.2% 17.3% 9.7% 9.1% Natural beauty/ Culture Festival/Event Culinary Golf Outdoor Other Pastoral Settings/ Beaches Source: Centre for Tourism Research. Exit Surveys 2012 and 2014 Note: Results were based on a 5-point Likert type scale.

46 Party Composition Families 29.8% 28.2% 24.1% 3 or more Adults 10.9% 15.0% 15.4% 2 Adults 49.5% 46.0% 51.0% Adults travelling alone 9.8% 10.8% 9.5% Significant change Source: Centre for Tourism Research. Exit Surveys 2007/08, 2012 and 2014

47 Overall Evaluation and Satisfaction Overall Evaluation of the Trip Significant change Overall Satisfaction Source: Centre for Tourism Research. Exit Surveys 2012 and 2014 Note: Results were based on a 5-point Likert type scale.

48 Increase in Average Travel Expenditures Average Spending per Party per Visit $1, $1, Average Spending per Person per Night $72.26 $76.16 $83.51 $ Significant change Source: Centre for Tourism Research. Exit Surveys 2007/08, 2012, 2014

49 2015 Outlook

50 Canada Tourism Forecast Forecast 2016f 2017f 2018f Overnight Visits Canada 2% 2.8% 1.9% PEI 2.2% 3.2% 1.6% NS 2.3% 1.9% 1.4% NB 2.1% 1.9% 1.5% Expenditures Canada 4.7% 5.6% 4.5% PEI 4.7% 6.8% 4% NS 5.0% 4.5% 3.9% NB 4.6% 4.4% 3.9% Source: Conference Board of Canada, Travel Markets Outlook. National Focus: Tourism Insights for Canada, the Provinces, and Yukon

51 Trend in Travel Expenditures +5.1% +1.0% +5.4% +0.8% -0.3% +0.3% $379M $382M $380M $382M $401M $405M f Note: Include tourism-related spending from both non-residents and residents Source: Total expenditure: Centre for Tourism Research at TIAPEI

52 Trend in Visitation (Million) +4.3% +1.4% +5.7% +2.7% -5.4% -0.2% f Note: Include both same-day and overnight non-resident visitation Source: Total visitation: Centre for Tourism Research at TIAPEI

53 Comments & Questions?