Gloria Guevara CTO. St Thomas USV. September 2014
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1 Gloria Guevara CTO St Thomas USV. September 2014
2 Travel and Tourism Industry Travel is a way of life Drives economy and creates jobs Economic impact reports 184 countries
3 Travel and Tourism $7 trillion contribution 266 millon jobs 9.5% GDP 1 in 11 jobs
4 Tourism for Mexico 9% of GDP 3 rd source of foeing income 2.5 million direct jobs plus 5 mill indirect + 43 K economic units 80% SMEs +28 mill international travelers + 180mill domestic
5 Mexico at a Glace U.S. Border 3K kms GDP p/capita 1,154 USD Area 2million kms sq 29 yrs Average age Exports 320,524 US$ mill 11,121 kms Litoral Extension 31 States + DF
6 the Perfect storm
7 What was our situation? Crisis financial and economic Challenges Outbreak AH1N1 Security 7
8 In addition.. Who was controling our destiny?
9 When it is dark enough, you can see the stars. Ralph Waldo Emerson
10 Inside Out strategy 1. Every Destination is Different and UNIQUE º view - Methodology Our DNA? what assets? Our value proposition? Different? 2. Market Segments? Products? Target? Our Brand Mature? 3. Alignment? IP and Government? Unions? 4. Communication? Media? Message?
11 Image & Brands Public Relations Communication Campaigns International Fairs Roadshows Tour operators Travel agencies OTA s Partners Promotion Strategy Branding Positionin g Commercializati on Strategy DNA 360 o Consulting Experience Design Gastronomic Hospitality Events Live Cultures Sports Destination Developme nt Market and Traveler Segmentatio n Product Developme nt Regions Locations Destinations Couples Retired Families Cultural Heritage Adventure Religious Luxury Medical MICE Domestic Targeted Countries International
12 38 UNESCO World Heritage Sites/goods (Top 5 Worldwide) Gastronomy (2010) and Mariachi (2011) World Heritage 83 Magic Towns + 3K years of history 40K archaelogical sites and 62 ethnic groups Routes of Mexico + 50 world-class golf courses + 640K hotel rooms 14 AAA Hotels 5 Diamond Award Cruises (Cozumel large port of call) 174 protected natural areas 70 convention centers/mice Sun & beach icon destination (Los Cabos, Cancun, etc.) Num 2 Luxury segment (Virtuoso) 1er place num of SPAs (SpaIntnal) Best place for retirement (AARP) 1
13 13 Strategic Plan The Year of Tourism in 2. National Agreement of Tourism 3. Increase Investment { Public Private 4. Diversification { Product Market 5. Marca País initiative to Reposition the image of Mexico { International presence
14 National Agreement for Tourism Unprecedent alignment : One plan (Feb ) Federal-State-Municipal Collaboration and teamwork President Felipe Calderón and his entire cabinet Taleb Rifai, Secretary General UNWTO David Scowsill, CEO WTTC All Gobernors Congress and Senators Private Sector Universities and Academia Unions 14
15 15 Key Pillars of National Agreement 1. Increase conectivity and facilitate travel to and from Mex. 2. Build, maintian and improve, touristic infraestructure y support urban ordenamiento. 3. Sterngthen and invest in the tourist promotion in Mexico and international markets 4. Foster public and private investment and faciliate financing. 5. Improve and increase competiveness of destinations and touristic enterprises to guarantee the experience to the visitor. 6. Diversify and increase toursitic offering and products 7. Promote and support the integration of the entire dosmetic productive chain. 8.Offer the best service and promote our culture. 9.Propose regulatory changes and laws in favor of turism. 10.Promote a balance and sustentable development Connected to each state plan
16 Product Diversification DNA provided uniqueness of each top destination New potential Markets and Segments Create and launch new products for the new segments Developed a marketing campaing for new products Promoted experiences according to new consumers Capitalized opportunities: MAYA CALENDAR
17 Image & Brands Public Relations Communication Campaigns International Fairs Roadshows Tour operators Travel agencies OTA s Partners Promotion Strategy Branding Positionin g Commercializati on Strategy DNA 360 o Consulting Experience Design Gastronomic Hospitality Events Live Cultures Sports Destination Developme nt Market and Traveler Segmentatio n Product Developme nt Regions Locations Destinations Couples Retired Families Cultural Heritage Adventure Religious Luxury Medical MICE Domestic Targeted Countries International
18 Product Diversification Cultural Tourism Sun & Beach Adventure Travel Gastronomical Religious Tourism Medical Tourism Mayan World Magical Towns Meetings & Conventions 18
19
20 Positive Signals Foreign Income and Spending (Million Dollars) Source: Bank of Mexico 20
21 Market Diversification New Immigration Policies implemented On May 2011 Mexico accepted US Visa as Valid US Residency or flying from US NO Need Visa Online 24 hrs Visa for Russia and China Certify Travel Agencies to support processing Remove visas for Pacific Alliance (Colombia, Chile, Peru and Mexico) and Brazil APEC Business Card Global Entry with USA Consider: Accepting Canadian and Schenghen; Regional Visas 21
22 Main Nationalities with increases (Jan-jul 2012) Market Diversification Variations Country 11/10 12/11 Rusia 59.4% 83.1% Brasil 45.6% 56.2% Sweden 35.4% 33.1% China 33.9% 30.4% Peru 42.5% 29.3% Argentina 16.1% 28.0% Japan 9.2% 19.3% Emerging 29.0% 51.1% 85.6% 18.7% 27.2% 143 nationalities grew January-August 2012 Strategic 11.6% 224 nationalities arrived in % 2.8% Source: Immigration Statistics System (SIOM) In 18 months +1.8 million visitors with American Visa
23 23 17 months of continued growth (April August 2012) Occupancy Rates
24 Repositioning the Image of Mexico Marca Pais initiative Public Relations Online Strategy Testimonials and Opinion Leaders Advertising Campaigns Invite Celebrities and Major Events Private Sector Involved and other Ministries (Foreign Affairs, Economy, etc.) 24
25 25 Public Relations Roadshows and interviews in international markets with Media (Mexican Government & Private sector leaders) More than 800 interviews more than 12.5 billion of impacts
26 26 Online Strategy MexicoToday.org +1 billion views 617,961 unique visitors Main Networks Pinterest Twitter Facebook YouTube Flickr Positives aspects from Mexico Closing the gap between perception and reality Direct to the target Audience Culture, Environment, Economy, Tourism and Mexico in the world MexicoToday in Europe
27 27 Testimonials Key Leaders of Opinion 5.8 million impressions/impacts
28 28 Major Campaigns & Programs Mexico, the place you thought you knew North America Testimonials Campaign MexicoToday Europe
29
30 30 Celebrities +13 Billion media impressions Powerful vehicle to reach their fan base
31 Tonality of Media Coverage Measurement 31
32 32 Domestic and International Tourists +9.3% +19.6% International Tourists Domestic Tourists Total Estimated Tourists 2012
33 Major Events T20 in Merida and declaration 20 Members G20 7 Invited Countries 7 International Organizations Importance of Travel and Tourism Tourism as a driver for Economic Growth Additional Jobs: 5.1 Million Receipts: $206 Billion USD Proposals Travel and Visa Facilitation
34 G20 Los Cabos, Mexico 5 Priorities
35
36 G20 Declaration of Leaders We recognize the role of as a vehicle for job creation, economic growth and development, and, while recognizing the sovereign right of states to control the entry of foreign nationals, we will work towards developing in support of job creation, quality work, poverty reduction and global growth. 36
37 Visión del Turismo de México en el Mundo The leadership of Mexico in Tourism has become a model to the rest of the world for the support and the actions implemented in favor of Tourism worldwide (Taleb Rifai, Secretary General of UN World Tourism Organization) We have to congratulate the Mexican Government for their support to Tourism and Travel, it is great model of a Government that believes in the power and capacity of the Travel and Tourism Industry (President del WTTC, David Scowsill) According to the Mayan Calendar, the end is near. Or is it? Our travelers are discovering Mexico and booking at record numbers. Dara Khosrowshahi CEO Expedia Mexico is a significant part of our travel business and has been for many years. Over the past twelve months, we have seen double digit growth in Mexico sales and travelers. We look forward to continued growth in Mexico tourism in Jack Richards, President de Pleasant Holidays 37
38
39 Tourism of Tomorrow Industry that has changed Technology
40 Arrival experience
41 Travel and Tourism: Global Forecast 2023 $10.5 trillion contribution 1 in 10 jobs 10% GDP 70 million new jobs
42 Latin America in the next 10 years $379 billion (9%GDP) $629 billion GDP 16 million (8%) 21 million jobs $38 billion $85 billion
43 Caribbean Economy next 10 Years $48 billion (14%GDP) $ 69 billion 2 million 2.5 million jobs 12% employment $25 billion $37 billion visitor exports Direct spend 30% Domestic, 70% Foreign
44
45 Regional Alignment : Asia
46 Take it to next level..!
47 1. WORK Together Opportunities One Caribbean move faster as ONE Where is the competition? (Here? Other Regions?) cooperate to compete 2. Find/validate your DNA, each island/destination has something different, and unique.. Positioning 3. EASY to Travel (Freedom to Travel) Immigration process (Consider options, departure, arrival, US Visa)? Multi destination.. (example national from 7 top countries vs visas) Welcome travelers and Embrace technology 4. It is ALL About the Experience Make it the BEST (return ratio) Service is Key
48 Every destination is UNIQUE.. Travel gives us an opportunity to see it, to learn and understand other cultures Travel creates Empathy!
49
50 Gloria Guevara CTO St Thomas USV, September
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