Overseas and Mexican Visitors To California

Overseas and Mexican Visitors To California 2014 A joint marketing venture of Visit California and the California Business, Transportation and Housing Agency, Division of Tourism November 2015

CIC Research, Inc. 8361 Vickers Street San Diego, CA 92111-2112 PH: (858) 637-4000, FAX: (858) 637-4040 Prepared by For Visit California 555 Capitol Mall, Suite 1100 Sacramento, California 95814 PH: (916) 319-5400, FAX: (916) 319-5401 ii

EXECUTIVE SUMMARY OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2014) Total Overseas Market. There were approximately 34.4 million overseas visitors to the U.S. in 2014, up 7.4% from 32.0 million in 2013. Approximately 7.3 million overseas visitors (21.1%) indicated California was a destination on their U.S. trip, up 9.9% from 6.6 million overseas visitors to California in 2013. Mexican (Air). There were approximately 2,358,000 Mexican travelers who arrived in the U.S. by air in 2014 (a 6.3% increase from 2013). Approximately 542,000 (23.0%) of these Mexican travelers visited California during their U.S. trip (a 5.2% increase from 2014). 1 Country of Origin. California's top ten overseas visitor market countries were: Overseas Visitors to California Rank Country 2013 2014 Percentage Change 1) China (excl. Hong Kong) 818,000 996,000 21.8% 2) United Kingdom 652,000 686,000 5.2% 3) Australia 553,000 589,000 6.5% 4) Japan 536,000 575,000 7.3% 5) France 389,000 445,000 14.4% 6) Germany 421,000 439,000 4.3% 7) South Korea 389,000 397,000 2.1% 8) India 240,000 262,000 9.2% 9) Brazil 206,000 220,000 6.8% 10) Taiwan 186,000 214,000 15.1% In 2014, China, the U.K., and Australia combined generated approximately 31% of the overseas visitors to California. The number of Chinese visitors to California increased by almost 22% in 2014 (996,000) from 2013 (818,000). This resulted in the ranking of Chinese visitors to California increasing its lead in first place. U.K. visitor volume to California increased by approximately 5%, still keeping their ranking in second place. The number of Australian visitors went up almost 7% from 553,000 to 589,000, resulting in the Australian ranking of third place, moving closer to the U.K. Japanese visitors increased by over 7% while remaining in fourth place in the rankings. There was an increase in the volume of overseas visitors to California for all of the top ten overseas visitor market countries. 1 The majority of Mexican visitors to California in 2014 arrived by ground transportation through a U.S. border port of entry. Mexican visitors arriving in the U.S. by ground transportation are not included in the Survey of International Air Travelers and are not included in this study. Please note that Canadians, whether arriving by air or land, are not included in the Survey of International Air Travelers or this study. iii

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Overseas Visitors to the U.S. and California 40.0 35.0 Millions 30.0 25.0 20.0 15.0 10.0 Overseas to U.S. Overseas to CA 5.0-2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Market Share. Among the ten largest overseas visitor markets, California's share of visitors increased in 2014 from 2013 for visitors from seven of these markets including China, the UK, Australia, Japan, France, Germany, and Taiwan. California Market Share of U.S. Visitors from Selected Overseas Countries Rank By Volume Country 2013 2014 1) China (excl. Hong Kong) 45.3% 45.5% 2) United Kingdom 17.0% 17.3% 3) Australia 45.9% 46.1% 4) Japan 14.4% 16.1% 5) France 25.9% 27.4% 6) Germany 22.0% 22.3% 7) South Korea 28.6% 27.4% 8) India 27.9% 27.2% 9) Brazil 10.0% 9.7% 10) Taiwan 48.4% 51.8% Trend in Overseas Visitor Market Share. California s market share of overseas visitors to the U.S. has recorded a general decline since the late 1990s. In 1997, California s market share of overseas visitors to the U.S. was at a high of 26.6%. By 2004, the market share had dropped to 20.7%. In 2009 California s market share of overseas visitors fell to 20.1%, increased to 22.0% in 2011, dropped again in 2013 to 20.6%, and has increased slightly in 2014 to 21.1%. v

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Main Destination. Almost eight in ten (79%) overseas visitors to California indicated that California was their main destination, similar to that reported in previous years. California MSAs Visited. Similar to last year s data, the most common Metropolitan Statistical Areas (MSAs) visited by overseas visitors to California included Los Angeles - Long Beach (62%) and San Francisco (44%), followed by San Diego (14%), Anaheim-Santa Ana, and San Jose (8% and 6% respectively). Main Purpose of Trip. The main purpose of trip among overseas travelers to California was vacation (54%), followed by visiting friends and relatives (18%), and business (13%). Purpose of Trip. Overseas travelers to California listed multiple reasons for their trip in addition to the main purpose. These included: vacation (66%), visiting friends/relatives (34%), and business (18%). Compared to other overseas travelers, visitors from Australia reported the highest proportion of travelers on vacation/holiday (88%), while visitors from Mexico (air) and India reported the highest proportion of those visiting friends and relatives (40% and 37%, respectively). Visitors from Japan and India (38% and 37%, respectively) reported the highest proportion of business travelers. Leisure/Recreation Activities. Shopping (89%), sightseeing (83%), and national parks/monuments (52%) were the most common leisure and recreation activities of overseas visitors to California in 2014. More than nine in ten visitors from Australia reported shopping (97%) or sightseeing (91%) as a recreation activity, while almost seven in ten German visitors (69%) reported national parks/monuments. Use of Travel Agents. Travel agent usage in 2014 declined slightly compared with 2013 (29% versus 31% respectively.) Visitors from Australia (56%) and Italy (43%) report the highest dependence on travel agents to book their air trips, though use of the travel agents service declined among most of the groups. Overseas travelers who relied on travel agents to pre-book their lodging arrangements dropped to 14% in 2014 from 15% in 2013. An Internet booking service was reportedly used by 33% of travelers in 2014, (31% in 2013), while 18% reported contacting the hotels/motels directly (19% in 2013), and 8% reported that their company s travel department booked their lodging (10% in 2013). Accommodations. Similar to 2013, more than three-fourths of overseas travelers to California in 2014 reported staying in hotels or motels at some time during their trip (76%). Visitors from Mexico (air) and China reported the lowest hotel usage (62% and 68%, respectively), while visitors from Japan and Italy (85% each respectively) reported the highest hotel usage. Gender and Age. Similar to results from previous years, approximately 57% of overseas travelers to California during 2014 were adult males and 43% were adult females. During 2014, the average age of traveling adult males (40 years old) was two years older than the average traveling adult female (38 years old). vii

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Length of Stay. During 2014, California's overseas visitors spent an average of 23 nights in the U.S. and 12 nights in California, the same as in 2012. Once again, visitors from India reported the highest number of nights stayed in the U.S. (42 nights) while visitors from South Korea reported the highest number of nights in California (18 nights). Once again, visitors from Japan and Mexico (air) reported the least amount of time spent in the U.S. (9 nights and 12 nights respectively), while visitors from these same countries reported the least amount of time in California (7 nights each respectively). First Air Trip to U.S. More than one quarter of overseas visitors to California in 2014 were traveling on their first air trip to the U.S. (27%) as compared with 28% in 2013. Transportation Use. Approximately four in ten overseas visitors to California made use of airlines, a rental car, or a company or private auto (45%, 44%, and 38% respectively) as a means of transportation within the U.S. These were followed by use of a taxi/cab/limousine and the city subway/tram/bus (31% each respectively). Once again, visitors from Australia were most likely to fly between U.S. Cities (71%), while visitors from Germany and Brazil were most likely to make use of a rental car (64% and 59% respectively). Visitors from China were most likely to make use of a company or private auto (49%), and visitors from Australia were most likely to make use of a taxi/cab/limousine (53%) as well as a city subway/tram/bus (48%). Advance Trip Decision. In 2014 the average overseas visitor to California decided to travel a median of 80 days prior to the actual trip, longer than that reported in 2013 (65 days). As in the previous year, visitors from Australia reported the longest trip planning time (median = 150 days). Advance Ticket Reservation and Payment. Overseas visitors to California in 2014 reserved their airline ticket a median of 50 days prior to the actual trip, compared with 47 days reported in 2013. Visitors from India reported the shortest time frame from airline reservation to departure date (median = 28 days). On the other hand, visitors from Australia, Germany, and the U.K. reported the longest time frame from airline reservation to departure (median = 90 days respectively). Overseas visitors to California paid for their airline ticket a median of 45 days prior to the actual trip, 5 days after reserving the ticket. Visitors from Mexico (air) paid for their ticket a median of 21 days prior to the actual trip (shortest timeframe), while visitors from Australia and the U.K. paid for their ticket a median of 90 and 84 days (each respectively) prior to their actual trip (longest timeframe). Travel Insurance. More than six in ten (63%) overseas visitors to California in 2014 purchased travel insurance, while 37% did not. (The same as in 2013). Travel Companions. The highest proportion of overseas travelers to California (59%) were traveling alone, while 22% were traveling with their spouse, 15% with family/relatives, 6% with friends, and 3% with business associates. There was a slightly lower proportion of travelers to California traveling alone in 2014 (59%) compared with 2013 (61%). Travel Party Size. Consistent with results from previous years, the average travel party size for all overseas visitors to California during 2014 was 1.7 people. Visitors from Mexico (air), China and Australia were the most likely to include children (17%, 15% and 15%, respectively). ix

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Prepaid Trip Package. Package tours were used by 15% of all 2014 visitors to California, the same as in 2013. During 2014, visitors to California who reported the highest use of inclusive tours were from China (27%). Total Spending in the U.S. by Overseas Visitors to California. In 2014 overseas visitors to California reported total spending in the U.S. of $26.1 billion. Approximately $13.6 billion (52%) of their total spending in the U.S. was spent in California. Overseas visitors to California reported average spending in the U.S. of $3,590 per visitor. By country, the highest spending in the U.S. was reported by California visitors from Brazil ($5,067 per visitor) followed by visitors from India ($4,790), China ($4,092), and Australia ($4,054). Expenditures in California. 2 In 2014, the total number of overseas visitors to California was 7,262,000, compared with 6,609,000 in 2013. These visitors reported spending an average of $153 per day and they stayed an average of 12.2 nights in California. Estimated spending per visitor in California was about $1,872 in 2014, for an estimated total spending of $13.6 billion in the state. Expenditures in California - Mexican (air) visitors. 3 In 2014, the total number of Mexican (air) visitors to California was 542,000, up from 515,000 in 2013. These visitors reported spending an average of $135 per day and they stayed an average of 7.2 nights in California (0.2 nights shorter than in 2013). Each visitor from Mexico (air) generated average spending of $970 in California during 2014. The total estimated spending by all Mexican (air) visitors to California was $526 million in 2014. Credit Card Use. In 2014, 69% of overseas visitors to California made use of a credit card for purchases and 34% used their credit cards to withdraw cash. More than six in ten (62%) used cash from home or travelers checks, 15% withdrew cash using a debit card and 13% used their debit card for purchases. These percentages are from a multiple-response question which records all purchase methods used. (This method was used in 2013 but not in prior years.) 2 Spending estimates for visitors to the U.S. and California were prepared by Tourism Economics for Visit California and were based on SIAT data and other secondary data sources. 3 Ibid. xi

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OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA* SELECTED HIGHLIGHTS (2014) ALL OVERSEAS VISITORS UNITED KINGDOM GERMANY FRANCE ITALY AUSTRALIA CHINA W/O HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) Estimated Travelers 7,262,000 686,000 439,000 445,000 178,000 589,000 996,000 262,000 575,000 397,000 220,000 542,000 Purpose: Business (% Change 2013/2014) 18% (-2%) 12% (-8%) 13% (0%) 12% (-1%) 12% (-6%) 9% (3%) 22% (3%) 37% (-12%) 38% (-8%) 18% (-1%) 11% (4%) 14% (-5%) Purpose: Vacation (% Change 2013/2014) 66% (2%) 75% (7%) 78% (6%) 74% (-5%) 79% (5%) 88% (-1%) 54% (-3%) 36% (12%) 41% (6%) 56% (0%) 69% (-10%) 65% (3%) Adv. Trip Decision (mean days) Adv. Air Decision (mean days) 105.6 149.1 137.7 123.5 118.9 177.0 70.0 53.2 71.6 62.5 97.9 67.5 74.2 116.6 105.1 79.3 94.7 125.0 44.0 37.3 50.7 43.6 65.1 43.6 Mean Travel Party Size 1.7 1.7 1.7 1.7 1.7 1.8 2.0 1.3 1.6 1.8 1.6 1.7 Median Male Age (years) 38.0 40.0 40.0 38.0 34.0 35.0 35.0 36.0 47.0 40.0 34.0 39.0 Median Female Age (years) 34.0 40.0 32.0 29.0 32.0 37.0 32.0 37.0 44.0 32.0 30.0 33.0 Mean Household Income $95,782 $111,970 $109,386 $77,470 $69,749 $116,408 $78,665 $52,195 $129,073 $88,643 $81,336 $56,233 Nights CA (mean) Nights CA (median) (Mean change 2013/2014) 12.2 7.0 (0.0 nts) 10.9 8.0 (0.6 nts) 12.3 8.0 (1.0 nts) 11.0 7.0 (1.8 nts) 11.7 6.0 (1.3 nts) 9.0 7.0 (-1.8 nts) 16.3 7.0 (1.9 nts) 15.9 7.0 (-4.8 nts) 7.2 4.0 (-1.3 nts) 17.8 6.0 (7.8 nts) 12.8 8.0 (-2.2 nts) 7.2 5.0 (-0.2 nts) Hotel/Motel 75.5% 76.1% 79.9% 78.6% 84.6% 82.2% 67.5% 72.6% 85.2% 74.3% 82.8% 61.7% Private Home 30.2% 31.9% 29.7% 26.2% 19.3% 18.6% 35.5% 33.1% 19.4% 35.6% 22.1% 44.3% Rental Car 43.7% 45.6% 63.6% 51.4% 55.9% 39.3% 36.4% 16.9% 33.1% 33.8% 58.8% 40.7% Total Spending in CA ($Bil.) $13.6 Bil. $0.91 Bil. $0.72 Bil. $0.79 Bil. $0.28 Bil. $0.91 Bil. $2.24 Bil. $0.48Bil. $1.17 Bil. $0.97 Bil. $0.44 Bil. $0.53 Bil. Spending /visitor in CA $1,872 $1,319 $1,641 $1,765 $1,574 $1,553 $2,253 $1,835 $2,041 $2,430 $2,008 $970 Mean Spending /day in CA $153 $121 $133 $160 $135 $173 $138 $115 $283 $137 $157 $135 *Does not include Canadian visitors. Only Mexican visitors arriving in the U.S. by air were included in the study. Source: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014 CIC Research, Inc., and Visit California. xiii

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OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA* SELECTED HIGHLIGHTS (2014) ALL OVERSEAS VISITORS UNITED KINGDOM GERMANY FRANCE ITALY AUSTRALIA CHINA W/O HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) Estimated Travelers 5,193,000 579,000 348,000 359,000 141,000 528,000 606,000 119,000 281,000 240,000 148,000 419,000 Purpose: Business 2.3% 1.2% 2.2% 0.4% 0.3% 2.5% 7.4% 0.2% 2.3% 0.0% 2.5% 2.4% Purpose: Vacation 84.0% 86.3% 91.9% 86.1% 93.8% 94.6% 76.8% 57.0% 76.7% 78.7% 85.6% 79.4% Adv. Trip Decision (mean days) Adv. Air Decision (mean days) 126.0 171.0 152.5 136.4 130.5 189.5 77.5 72.7 91.2 66.2 105.4 77.8 90.5 133.5 117.8 91.3 105.4 136.0 51.2 51.3 66.9 46.6 81.0 49.0 Mean Travel Party Size 1.9 1.8 1.9 1.8 2.0 2.0 2.3 1.7 1.9 2.0 1.9 2.0 Median Male Age (years) Median Female Age (years) 38.0 42.0 40.0 40.0 33.0 35.0 38.0 50.0 47.0 42.0 41.0 43.0 37.0 43.0 33.0 30.0 36.0 40.0 37.0 55.0 45.0 34.0 32.0 34.0 Mean Household Income ($000) $93 $105 $91 $70 $62 $115 $80 $54 $102 $97 $93 $56 Nights CA (mean) Nights CA (median) 11.4 8.0 10.6 9.0 12.2 8.0 10.6 8.0 9.4 7.0 8.8 7.0 14.9 7.0 18.5 7.0 6.9 5.0 13.2 6.0 10.3 9.0 7.8 6.0 Hotel/Motel 72.5% 76.6% 78.9% 74.7% 83.2% 82.1% 61.2% 52.8% 73.8% 63.8% 83.8% 55.5% Private Home 34.5% 32.6% 31.6% 30.6% 21.2% 18.6% 43.2% 56.1% 32.8% 52.1% 20.0% 48.6% Rental Car 47.7% 49.8% 65.0% 55.4% 63.3% 41.0% 40.2% 10.1% 25.5% 36.3% 63.9% 37.8% Total Spending in CA ($Bil.) $9.9 Bil. $0.80 Bil. $0.58 Bil. $0.54 Bil. $0.26 Bil. $0.89 Bil. $1.30 Bil. $0.21 Bil. $0.60 Bil. $0.48Bil. $0.49 Bil. $0.37 Bil. Spending /visitor in CA $1,913 $1,380 $1,673 $1,516 $1,827 $1,676 $2,138 $1,785 $2,141 $2,011 $3,324 $890 Mean Spending /day in CA $168 $130 $137 $143 $194 $190 $143 $96 $310 $152 $323 $114 *Does not include Canadian visitors. Only Mexican visitors arriving in the U.S. by air were included in the study. Source: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014 CIC Research, Inc., and Visit California. xv

Figure 1 TOP TEN COUNTRIES OF RESIDENCE OVERSEAS VISITORS TO CALIFORNIA (2014) CHINA Visitors (000's) 996 UNITED KINGDOM AUSTRALIA JAPAN 589 575 686 FRANCE GERMANY SOUTH KOREA INDIA BRAZIL TAIWAN 220 214 262 397 445 439 0 200 400 600 800 1000 Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. xvi

Table 1 RESIDENCE OF VISITORS TO THE UNITED STATES AND CALIFORNIA (2014) UNITED STATES CALIFORNIA Number of 2013-2014 Estimated 2013-2014 CA Share of Visitors Percent Visitors to Percent Visitors from RESIDENCE OF VISITORS to the U.S. Change California Change* this Country EUROPE 13,731,948 6.5% 2,733,000 9.2% 19.9% W. EUROPE 12,784,471 6.2% 2,519,000 7.9% 19.7% Austria 195,103 4.9% 42,000-2.3% 21.3% Belgium 280,121 5.4% 54,000 22.7% 19.4% Denmark 305,331 13.3% 73,000 4.3% 24.0% France 1,624,604 8.0% 445,000 14.4% 27.4% Germany 1,968,536 2.7% 439,000 4.3% 22.3% Ireland 395,037 7.6% 121,000 37.5% 30.6% Italy 934,066 11.3% 178,000 13.4% 19.0% Netherlands 615,856 4.5% 126,000 11.5% 20.4% Norway 310,204 9.1% 55,000 3.8% 17.8% Spain 700,084 12.9% 101,000 9.8% 14.4% Sweden 543,336 14.0% 103,000 6.2% 19.0% Switzerland 486,506 2.8% 121,000 9.0% 24.9% United Kingdom 3,972,655 3.6% 686,000 5.2% 17.3% E. EUROPE 947,477 10.1% 225,000 25.7% 23.8% CARIBBEAN 1,338,644 15.8% 17,000 142.9% 1.3% Bahamas 218,864 -- 2,000 -- 0.9% Cayman Islands 39,733 -- 8,000 -- 20.6% Dominican Rep 271,724 31.8% 1,000-50.0% 0.5% Jamaica 205,311 425.3% 3,000 -- 1.7% Other Caribbean 603,012 -- 3,000 -- 0.5% Note: "--" Represents an estimate of less than 500 visitors or a response of less than 0.05%. * Large variances may occur due to small sample sizes. xvii

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Table 1 (Cont.) RESIDENCE OF VISITORS TO THE UNITED STATES AND CALIFORNIA (2014) UNITED STATES CALIFORNIA Number of 2013-2014 Estimated 2013-2014 CA Share of Visitors Percent Visitors to Percent Visitors from RESIDENCE OF VISITORS to the U.S. Change California Change* this Country SOUTH AMERICA 5,480,579 6.6% 466,000 9.1% 8.5% Argentina 684,727-0.2% 55,000 17.0% 8.1% Brazil 2,263,865 9.9% 220,000 6.8% 9.7% Chile 248,512 17.1% 30,000 42.9% 12.1% Colombia 881,219 17.8% 65,000 10.2% 7.4% Ecuador 335,275 31.6% 17,000 112.5% 5.2% Peru 246,438 13.1% 35,000 169.2% 14.3% Venezuela 615,975-21.8% 14,000-81.3% 2.3% CENTRAL AMERICA (Excluding Mexico) 932,866 11.9% 136,000 54.5% 14.6% Costa Rica 202,830 11.4% 27,000 58.8% 13.3% Guatemala 222,213 9.9% 48,000 100.0% 21.8% Honduras 152,967 10.3% 14,000 1300.0% 8.9% Panama 155,280 9.7% 5,000-58.3% 3.1% Other Central America 199,576 17.9% 42,000 23.5% 21.0% AFRICA 513,445 16.9% 55,000 44.7% 10.7% South Africa, Rep. of 113,575 8.2% 24,000 33.3% 20.9% Other Africa 399,870 19.6% 31,000 55.0% 7.8% OCEANIA 1,555,382 8.8% 775,000 10.7% 49.8% Australia 1,276,124 5.9% 589,000 6.5% 46.1% New Zealand 260,601 24.6% 135,000 13.4% 51.8% Note: "--" Represents an estimate of less than 500 visitors or a response of less than 0.05%. * Large variances may occur due to small sample sizes. xix

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Table 1 (Cont.) RESIDENCE OF VISITORS TO THE UNITED STATES AND CALIFORNIA (2014) UNITED STATES CALIFORNIA Number of 2013-2014 Estimated 2013-2014 CA Share of Visitors Percent Visitors to Percent Visitors from RESIDENCE OF VISITORS to the U.S. Change California Change* this Country ASIA 9,641,032 6.1% 2,690,000 12.6% 27.9% Hong Kong 122,226 0.1% 60,000-3.2% 49.1% India 961,790 11.9% 262,000 9.2% 27.2% Indonesia 96,273 8.6% 52,000 8.3% 53.8% Japan 3,579,363-4.0% 575,000 7.3% 16.1% Korea, South 1,449,538 6.6% 397,000 2.1% 27.4% People's Republic of China 2,188,387 21.1% 996,000 21.8% 45.5% Philippines 219,632 9.5% 111,000 12.1% 50.6% Republic of China (Taiwan) 413,048 7.4% 214,000 15.1% 51.8% Singapore 150,224-1.7% 62,000-7.5% 41.6% Thailand 95,883 8.8% 38,000-5.0% 39.4% MIDDLE EAST 1,225,120 15.8% 274,000 21.8% 22.4% Egypt 72,247 9.0% 11,000 120.0% 15.1% Israel 355,466 7.3% 59,000-3.3% 16.7% Saudi Arabia 275,770 24.7% 80,000 45.5% 29.1% Turkey 172,369 7.5% 38,000-5.0% 22.2% Other Middle East 349,268 125.3% 86,000 34.4% 24.6% TOTAL OVERSEAS VISITORS 34,419,016 7.4% 7,262,000 9.9% 21.1% (Number of Respondents) (46,231) (8,032) Mexico (Air Arrivals Only) 2,357,676 6.3% 542,000 5.2% 23.0% Note: "--" Represents an estimate of less than 500 visitors or a response of less than 0.05%. Countries and World Region visitor volumes are independently estimated and may not sum to total visitors. * Large variances may occur due to small sample sizes. Source: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2014. CIC Research, Inc. xxi

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Table 2 OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA SHARE OF TOTAL U.S. MARKET BY COUNTRY AND VISITOR VOLUME ESTIMATE (2002-2014) California's Share of Overseas Visitors to the U.S. from Europe and Mexico (Air) YEAR ALL OVERSEAS ALL EUROPE GERMANY UNITED KINGDOM FRANCE ITALY NETHERLANDS IRELAND OTHER EUROPE 2002 21.9% 19.2% 20.4% 17.3% 23.7% 24.6% 22.1% 21.8% 18.8% 27.3% 2003 22.4% 20.3% 21.1% 17.4% 24.7% 19.8% 25.2% 23.9% 23.7% 32.3% 2004 21.5% 18.0% 21.5% 15.9% 24.4% 24.6% 27.0% 11.1% 15.2% 27.4% 2005 22.2% 20.0% 21.7% 16.6% 25.9% 20.7% 25.2% 26.2% 21.1% 29.7% 2006 21.7% 18.1% 18.7% 16.0% 23.4% 20.8% 21.7% 18.2% 17.7% 27.2% 2007 21.6% 18.1% 20.5% 15.8% 23.5% 20.7% 22.7% 13.2% 16.9% 22.8% 2008 20.9% 19.0% 20.8% 16.1% 23.9% 19.6% 26.0% 22.2% 18.3% 24.8% 2009 19.7% 18.0% 20.0% 15.2% 22.8% 18.1% 20.4% 21.2% 17.7% 22.2% 2010 21.1% 19.7% 22.0% 15.8% 28.2% 23.0% 20.3% 20.0% 18.5% 23.8% 2011 22.0% 20.6% 22.4% 17.1% 29.6% 20.7% 19.1% 19.9% 20.1% 25.2% 2012 20.8% 19.4% 21.3% 16.9% 25.6% 19.7% 20.6% 23.5% 17.9% 23.8% 2013 20.6% 19.4% 22.0% 17.0% 25.9% 18.7% 19.2% 24.0% 17.7% 23.2% 2014 21.1% 19.9% 22.3% 17.3% 27.4% 19.0% 20.4% 30.6% 17.5% 23.0% MEXICO (AIR) Estimated Volume of Visitors to California from Europe and Mexico (Air) YEAR ALL OVERSEAS ALL EUROPE GERMANY UNITED KINGDOM FRANCE ITALY NETHERLANDS IRELAND OTHER EUROPE 2002 4,196,000 1,652,000 243,000 660,000 174,000 100,000 78,000 57,000 340,000 402,000 2003 4,031,000 1,754,000 249,000 685,000 170,000 81,000 86,000 58,000 425,000 430,000 2004 4,378,000 1,743,000 284,000 682,000 189,000 116,000 101,000 60,000 311,000 415,000 2005 4,808,000 2,063,000 307,000 721,000 228,000 113,000 103,000 106,000 485,000 497,000 2006 4,710,000 1,835,000 259,000 667,000 185,000 111,000 93,000 96,000 424,000 466,000 2007 5,171,000 2,065,000 312,000 709,000 234,000 131,000 109,000 104,000 466,000 443,000 2008 5,292,000 2,431,000 371,000 734,000 297,000 153,000 158,000 118,000 600,000 424,000 2009 4,670,000 2,078,000 338,000 591,000 275,000 136,000 112,000 87,000 539,000 335,000 2010 5,572,000 2,358,000 380,000 610,000 378,000 193,000 116,000 72,000 609,000 398,000 2011 6,145,000 2,613,000 409,000 656,000 445,000 185,000 115,000 69,000 734,000 491,000 2012 6,197,000 2,421,000 399,000 635,000 373,000 164,000 122,000 78,000 650,000 504,000 2013 6,609,000 2,502,000 421,000 652,000 389,000 157,000 113,000 88,000 682,000 515,000 2014 7,262,000 2,733,000 439,000 686,000 445,000 178,000 126,000 121,000 738,000 542,000 MEXICO (AIR) xxiii

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Table 2 (Cont.) OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA SHARE OF TOTAL U.S. MARKET BY COUNTRY AND VISITOR VOLUME ESTIMATE (2002-2014) California's Share of Overseas Visitors to the U.S. from Asia, Australia, and South America YEAR ASIA JAPAN SOUTH KOREA HONG KONG TAIWAN INDIA CHINA OTHER ASIA AUSTRALIA SOUTH AMERICA 2002 29.1% 18.5% 43.1% 54.9% 64.2% 35.0% 54.5% 46.2% 48.9% 10.2% 2003 30.5% 18.8% 47.3% 56.3% 62.8% 40.0% 48.3% 55.1% 49.5% 9.7% 2004 27.7% 17.6% 44.2% 46.3% 60.1% 35.9% 51.8% 43.2% 49.2% 11.0% 2005 28.3% 18.1% 38.6% 59.8% 59.9% 30.4% 54.0% 47.2% 51.2% 8.8% 2006 29.1% 17.3% 41.3% 48.0% 59.6% 31.7% 57.4% 50.7% 49.2% 7.9% 2007 30.8% 18.4% 40.9% 59.3% 62.7% 31.7% 53.8% 49.7% 49.0% 9.7% 2008 30.9% 18.0% 38.2% 58.0% 61.4% 29.4% 48.5% 55.9% 49.1% 8.5% 2009 27.9% 15.0% 37.9% 55.2% 56.4% 27.8% 46.3% 45.9% 50.0% 8.5% 2010 27.7% 15.4% 37.7% 54.7% 53.2% 28.0% 47.6% 33.4% 54.6% 8.6% 2011 28.8% 16.9% 34.4% 52.1% 50.6% 27.7% 43.1% 40.7% 53.0% 9.0% 2012 26.1% 15.1% 31.0% 47.3% 47.6% 26.2% 45.5% 21.8% 46.5% 8.4% 2013 26.3% 14.4% 28.6% 50.8% 48.4% 27.9% 45.3% 19.2% 45.9% 8.3% 2014 27.9% 16.1% 27.4% 49.1% 51.8% 27.2% 45.5% 20.1% 46.1% 8.5% Estimated Volume of Visitors to California from Asia, Australia, and South America YEAR ASIA JAPAN SOUTH KOREA HONG KONG TAIWAN INDIA CHINA OTHER ASIA AUSTRALIA SOUTH AMERICA 2002 1,656,000 670,000 275,000 74,000 185,000 90,000 123,000 239,000 199,000 185,000 2003 1,526,000 596,000 292,000 64,000 150,000 109,000 76,000 239,000 201,000 148,000 2004 1,607,000 660,000 277,000 57,000 179,000 111,000 105,000 214,000 256,000 181,000 2005 1,754,000 703,000 272,000 81,000 191,000 105,000 146,000 255,000 298,000 160,000 2006 1,790,000 634,000 313,000 66,000 179,000 129,000 184,000 282,000 297,000 152,000 2007 1,964,000 651,000 330,000 84,000 195,000 180,000 214,000 309,000 328,000 220,000 2008 1,907,000 585,000 290,000 81,000 181,000 176,000 239,000 360,000 339,000 216,000 2009 1,581,000 439,000 282,000 64,000 135,000 153,000 243,000 265,000 362,000 233,000 2010 1,941,000 523,000 417,000 72,000 155,000 182,000 382,000 217,000 494,000 280,000 2011 2,084,000 548,000 394,000 67,000 147,000 184,000 470,000 277,000 550,000 337,000 2012 2,169,000 558,000 388,000 63,000 138,000 190,000 671,000 161,000 522,000 371,000 2013 2,389,000 536,000 389,000 62,000 186,000 240,000 818,000 158,000 553,000 427,000 2014 2,690,000 575,000 397,000 60,000 214,000 262,000 996,000 186,000 589,000 466,000 xxv

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TABLE OF CONTENTS Page EXECUTIVE SUMMARY: OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA... iii OVERSEAS AND MEXICAN VISITORS TO CA HIGHLIGHTS (2014)...xiii OVERSEAS AND MEXICAN LEISURE VISITORS TO CA HIGHLIGHTS (2014)... xv Table 1 RESIDENCE OF VISITORS TO THE U.S. AND CALIFORNIA (2014)...xvii Table 2 OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA AND SHARE OF TOTAL U.S. MARKET BY COUNTRY 2002-2014... xxiii LIST OF FIGURES...xxxi INTRODUCTION... 1 OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA... 3 COUNTRY OF RESIDENCE BY: Table 3 - MAIN DESTINATION BY STATE... 5 Table 4 - CALIFORNIA MSAs VISITED... 7 Table 5 - TRAVEL COMPANIONS... 11 Table 6 - MAIN PURPOSE OF TRIP... 13 Table 7 - PURPOSE OF TRIP... 15 Table 8 - LEISURE-RECREATION ACTIVITIES... 17 Table 9 - ADVANCE TRIP DECISION... 19 Table 10 - ADVANCE TICKET RESERVATION... 21 Table 11 - ADVANCE INTERNATIONAL TICKET PAYMENT... 23 Table 12 - MEANS OF BOOKING AIR TRIP AND LODGING... 25 Table 13 - U.S. TRIP INFORMATION SOURCES... 27 Table 14 - AIRLINE TICKET CLASS AND PREPAID TRIP PACKAGE... 29 Table 15 - TRAVEL PARTY SIZE... 31 Table 16 - GENDER AND AGE... 33 Table 17 - ANNUAL HOUSEHOLD INCOME... 35 Table 18 - NIGHTS AWAY FROM HOME... 37 Table 19 - PORT OF ENTRY... 39 Table 20 - OVERNIGHT ACCOMMODATIONS... 41 Table 21 - TRANSPORTATION IN THE U.S.... 43 Table 22 - PAYMENT METHODS FOR TRIP EXPENSES... 45 Table 23 - TRIP EXPENDITURES... 47 Table 24 - CALIFORNIA ONLY EXPENDITURES... 49 xxix

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TABLE OF CONTENTS (continued) Page OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA... 51 Table 25 - RESIDENCE OF OVERSEAS AND MEXICAN LEISURE VISITORS... 53 LEISURE TRAVELERS COUNTRY OF RESIDENCE BY: Table 26 - MAIN DESTINATION BY STATE... 59 Table 27 - CALIFORNIA MSAs VISITED... 61 Table 28 - TRAVEL COMPANIONS... 65 Table 29 - MAIN PURPOSE OF TRIP... 67 Table 30 - PURPOSE OF TRIP... 69 Table 31 - LEISURE-RECREATION ACTIVITIES... 71 Table 32 - ADVANCE TRIP DECISION... 73 Table 33 - MEANS OF BOOKING AIR TRIP AND LODGING... 75 Table 34 - TRIP INFORMATION SOURCES... 77 Table 35 - AIRLINE TICKET CLASS AND PREPAID TRIP PACKAGE... 79 Table 36 - TRAVEL PARTY SIZE... 81 Table 37 - GENDER AND AGE... 83 Table 38 - ANNUAL HOUSEHOLD INCOME... 85 Table 39 - NIGHTS AWAY FROM HOME.... 87 Table 40 - PORT OF ENTRY... 89 Table 41 - OVERNIGHT ACCOMMODATIONS... 91 Table 42 - TRANSPORTATION IN THE U.S.... 93 Table 43 - PAYMENT METHODS FOR TRIP EXPENSES.... 95 Table 44 - TRIP EXPENDITURES... 97 Table 45 - CALIFORNIA ONLY EXPENDITURES... 99 APPENDIX A - Survey Background... 101 APPENDIX B - Questionnaire... 105 APPENDIX C - World by Region and Country or Territory... 115 xxxi

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LIST OF FIGURES Figure Page 1 TOP TEN COUNTRIES OF RESIDENCE... xvi 2 MAIN STATE DESTINATION... 4 3 TOP TEN MSA DESTINATIONS... 6 4 TRAVEL COMPANIONS... 10 5 MAIN PURPOSE OF TRIP... 12 6 PURPOSE OF U.S. TRIP... 14 7 LEISURE RECREATION ACTIVITIES... 16 8 ADVANCE TRIP DECISION... 18 9 ADVANCE AIRLINE DECISION... 20 10 TRAVEL INFORMATION SOURCES... 26 11 TRAVEL PARTY SIZE... 30 12 GENDER OF OVERSEAS AND MEXICAN VISITORS... 32 13 INCOME PROFILE OF OVERSEAS AND MEXICAN VISITORS... 34 14 TOTAL NIGHTS IN THE U.S.... 36 15 PORT OF ENTRY OF OVERSEAS AND MEXICAN VISITORS... 38 16 OVERNIGHT ACCOMMODATIONS... 40 17 TRANSPORTATION IN THE U.S.... 42 18 PAYMENT METHOD FOR TRIP EXPENSES... 44 xxxiii

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INTRODUCTION This report on overseas visitors to California is based on data compiled from the 2014 National Travel and Tourism Office (NTTO) "Survey of International Air Travelers. The survey is conducted by CIC Research, Inc. in cooperation with over 90 major airlines on a sample of their international flights departing from U.S. airports. The survey information is collected from passengers through questionnaires covering traveler demographics, trip activities, places visited and travel expenditures. This survey program was initiated in response to a growing need for information on the volume, characteristics, and travel patterns of international air travelers to and from the United States. The data from the survey are used by the public and private sectors to guide strategic planning and marketing to international air travelers 4. Approximately 8,000 survey respondents reported a California visit in 2014. This is a very robust sample size, providing a unique opportunity to evaluate the characteristics of the international visitor market. However, since airline participation is voluntary and varies from quarter to quarter, country level data should be viewed cautiously. For example, if a major carrier for a particular country was unable to participate for a quarter, the data may not fully represent the market's international travel to California. In order to increase the overall accuracy of the visitor profile for selected countries with small sample sizes, multiple years of survey data were combined for these individual countries. Countries with combined years are indicated at the top of each column for the crosstabulation tables appearing in the body of the report. 4 The international visitor volume estimates appearing in this report were based on the U.S. Department of Commerce, NTTO, "Survey of International Air Travelers" and then were adjusted by the CTTC to reflect additional market information regarding travel to California. 1

With the exception of the number of respondents, all the data in the tables are statistical estimates, based on responses to the survey and supplemented with data from the U.S. Department of Homeland Security. Passengers on most charter flights and passengers traveling by air between the U.S. and Canada are excluded. Travelers to the U.S. from Mexico arriving on an international flight have been included in the 2014 report. However, most travelers from Mexico to California arrive in the U.S. through a land port of entry. A more detailed explanation of the survey methodology appears in Appendix A and a copy of the survey questionnaire in Appendix B. 2

OVERSEAS AND MEXICAN (AIR) VISITORS TO CALIFORNIA (2014) 3

Figure 2 MAIN STATE DESTINATION OVERSEAS VISITORS TO CALIFORNIA (2014) Nevada, 3% New York, 4% Other, 10% Florida, 1% Hawaiian Islands, 2% California, 79% Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 4

Table 3 MAIN DESTINATION BY STATE OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2014) Almost eight in ten (79%) overseas visitors to California in 2014 indicated that California was their main destination on their U.S. trip. Of all overseas visitors to California, Mexican (air), French, Japanese, Chinese, and Indian visitors (89%, 87%, 87%, 85% and 85% respectively) reported the highest proportion with California as their main state of destination in the U.S. COUNTRY OF RESIDENCE OF VISITORS TOTAL CHINA SOUTH MEXICO MAIN DESTINATION* OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA w/o HK INDIA JAPAN KOREA BRAZIL (AIR) ESTIMATED TRAVELERS 7,262,000 686,000 439,000 445,000 178,000 589,000 996,000 262,000 575,000 397,000 220,000 542,000 (Number of Respondents) (5,620) (548) (395) (275) (145) (352) (339) (181) (936) (121) (222) (348) California 79.2% 81.1% 74.7% 87.4% 77.7% 52.8% 84.7% 84.6% 86.7% 79.5% 70.1% 88.7% New York 4.3 1.0 1.8 4.2 12.9 12.3 4.3 1.4 1.4 3.2 3.5 2.0 Nevada 2.9 5.9 3.9 2.6 1.3 2.2 2.0 2.8 0.7 2.6 11.2 1.8 Hawaiian Islands 2.2 1.5 5.5 0.9 0.7 4.0 0.8 0.2 3.6 2.3 1.9 0.1 Florida 1.2 1.2 1.4-2.4 2.5 0.3 0.6 0.6 2.3 4.8 0.3 *Visitors may report only one destination -- States with less than 1% response were not listed. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 5

Figure 3 TOP TEN MSA DESTINATIONS OVERSEAS VISITORS TO CALIFORNIA (2014) Los Angeles - Long Beach 60.7% San Francisco 43.1% San Diego 14.2% Anaheim San Jose Salinas Riverside Santa Barbara - Lompoc Sacramento San Luis Obispo 8.1% 5.7% 4.3% 3.8% 3.8% 2.9% 1.9% 0% 10% 20% 30% 40% 50% 60% 70% Source: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014 CIC Research, Inc. and Visit California 6

Table 4 CALIFORNIA MSAs VISITED OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA* (2014) The most common Metropolitan Statistical Areas (MSAs) visited by overseas visitors to California in 2014 were Los Angeles Long Beach (62%) (57% in 2013), San Francisco (44%) (46% in 2013), San Diego (14%) (13% in 2013), Anaheim Santa Ana (8%) (7% in 2013), followed by San Jose (6%), Salinas (5%), Riverside-San Bernardino and Santa Barbara (4%), and Sacramento (3%). METROPOLITAN STATISTICAL AREA* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 7,262,000 686,000 439,000 445,000 178,000 589,000 996,000 262,000 575,000 397,000 220,000 542,000 (Number of Respondents) (8,032) (715) (570) (392) (208) (623) (581) (270) (1,299) (177) (277) (381) SOUTH KOREA BRAZIL MEXICO (AIR) Los Angeles-Long Beach MSA 4,406,000 330,000 264,000 297,000 122,000 454,000 724,000 110,000 247,000 241,000 145,000 349,000 (Los Angeles County) 60.7% 48.1% 60.1% 66.7% 68.5% 77.1% 72.7% 42.0% 43.0% 60.7% 65.9% 64.4% San Francisco MSA 3,132,000 290,000 254,000 245,000 94,000 272,000 411,000 110,000 136,000 164,000 77,000 97,000 (San Francisco-Marin-San Mateo Counties) 43.1% 42.3% 57.9% 55.1% 52.8% 46.2% 41.3% 42.0% 23.7% 41.3% 35.0% 17.9% San Diego MSA 1,033,000 107,000 77,000 34,000 19,000 87,000 103,000 23,000 79,000 59,000 45,000 57,000 (San Diego County) 14.2% 15.6% 17.5% 7.6% 10.7% 14.8% 10.3% 8.8% 13.7% 14.9% 20.5% 10.5% Anaheim-Santa Ana MSA 585,000 56,000 16,000 11,000 7,000 129,000 28,000 12,000 75,000 23,000 16,000 99,000 (Orange County) 8.1% 8.2% 3.6% 2.5% 3.9% 21.9% 2.8% 4.6% 13.0% 5.8% 7.3% 18.3% San Jose MSA 413,000 28,000 20,000 26,000 5,000 11,000 63,000 49,000 64,000 14,000 9,000 24,000 (Santa Clara County) 5.7% 4.1% 4.6% 5.8% 2.8% 1.9% 6.3% 18.7% 11.1% 3.5% 4.1% 4.4% Salinas MSA (Monterey County) 310,000 60,000 26,000 21,000 16,000 15,000 20,000 5,000 7,000 3,000 23,000 2,000 4.3% 8.7% 5.9% 4.7% 9.0% 2.5% 2.0% 1.9% 1.2% 0.8% 10.5% 0.4% Riverside-San Bernardino MSA 275,000 48,000 33,000 18,000 4,000 24,000 13,000 1,000 7,000 12,000 5,000 14,000 (Riverside-San Bernardino Counties) 3.8% 7.0% 7.5% 4.0% 2.2% 4.1% 1.3% 0.4% 1.2% 3.0% 2.3% 2.6% 7

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METROPOLITAN STATISTICAL AREA* Table 4 (Cont.) COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 7,262,000 686,000 439,000 445,000 178,000 589,000 996,000 262,000 575,000 397,000 220,000 542,000 (NUMBER OF RESPONDENTS) (8,032) (715) (570) (392) (208) (623) (581) (270) (1,299) (177) (277) (381) SOUTH KOREA BRAZIL MEXICO (AIR) Santa Barbara-Lompoc MSA 275,000 44,000 30,000 26,000 8,000 11,000 22,000 3,000 7,000 3,000 14,000 24,000 (Santa Barbara County) 3.8% 6.4% 6.8% 5.8% 4.5% 1.9% 2.2% 1.1% 1.2% 0.8% 6.4% 4.4% Sacramento MSA 207,000 28,000 20,000 6,000 6,000 15,000 9,000 4,000 14,000 9,000 9,000 2,000 (El Dorado-Placer-Sacramento- Yolo Counties) 2.9% 4.1% 4.6% 1.3% 3.4% 2.5% 0.9% 1.5% 2.4% 2.3% 4.1% 0.4% San Luis Obispo MSA 138,000 40,000 18,000 6,000 1,000 5,000 4,000-4,000 3,000 7,000 - (San Luis Obispo County) 1.9% 5.8% 4.1% 1.3% 0.6% 0.8% 0.4% - 0.7% 0.8% 3.2% - Oakland MSA 138,000 4,000 18,000 8,000 2,000 3,000 24,000 12,000 7,000 1,000-9,000 (Alameda-Contra Costa Counties) 1.9% 0.6% 4.1% 1.8% 1.1% 0.5% 2.4% 4.6% 1.2% 0.3% - 1.7% *Visitors may report multiple destinations -- percentages are read down the column. Counties with less than a 2% share of the California market were not listed. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 9

Figure 4 TRAVEL COMPANIONS OVERSEAS VISITORS TO CALIFORNIA / U.S. (2014) 70% 60% 58.6% 58.0% California Visitors 50% U.S. Visitors 40% 30% 22.2% 22.3% 20% 14.6% 15.9% 10% 0% 5.9% 6.0% 3.3% Traveling Alone Spouse/Partner Family/Relatives Friends Business Assoc. 2.6% 0.5% Tour Group 0.3% Source: U.S. Department of Commerce, NTTO Survey of International Air Travelers, 2014 CIC Research, Inc. and Visit California 10

Table 5 TRAVEL COMPANIONS OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2014) Almost six in ten overseas visitors to California (59%) were traveling alone, 22% were traveling with a spouse/partner, and 15% were traveling with family or relatives. Visitors from India (78%) had the highest proportion of respondents who were traveling alone, while visitors from Australia and Italy (34% and 33% respectively) and Germany and the U.K. (32% each respectively) had the highest proportion that was traveling with a spouse/partner. Visitors from China, Mexico (air), and Australia (23%, 22% and 20% respectively) had the highest proportion of respondents who were traveling with family/relatives, while visitors from Japan (11%) and South Korea (8%), had the highest proportion traveling with business associates. COUNTRY OF RESIDENCE OF VISITORS TOTAL CHINA SOUTH MEXICO TRAVEL COMPANIONS* OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA w/o HK INDIA JAPAN KOREA BRAZIL (AIR) ESTIMATED TRAVELERS 7,262,000 686,000 439,000 445,000 178,000 589,000 996,000 262,000 575,000 397,000 220,000 542,000 (Number of Respondents) (7,966) (714) (564) (389) (208) (617) (572) (264) (1,292) (176) (277) (374) Traveling Alone 58.6% 54.1% 50.8% 59.2% 51.2% 46.8% 53.8% 78.0% 63.8% 55.7% 64.3% 63.6% Spouse/Partner 22.2 31.5 32.2 22.6 32.9 34.1 16.5 14.5 12.2 14.8 20.9 10.9 Family/Relatives 14.6 12.9 13.2 14.6 14.5 20.0 22.8 8.2 10.6 15.9 11.7 21.9 Friends 5.9 5.0 6.3 4.3 4.5 6.9 7.4 1.1 5.3 9.8 7.3 5.0 Business Associates 3.3 1.9 2.0 1.3 0.7 0.4 5.8 1.8 11.2 7.9 0.9 2.0 Tour Group 0.5-0.8 1.8 0.1 0.1 1.1 0.1 0.9 0.5-0.4 *Column percentages may total more than 100 percent due to multiple responses. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 11

Figure 5 MAIN PURPOSE OF U.S. TRIP OVERSEAS VISITORS TO CALIFORNIA / U.S. (2014) 70% 58.2% 60% 53.7% California Visitors 50% US Visitors 40% 30% 20% 10% 17.8% 17.7% 13.3% 11.7% 8.2% 6.6% 5.6% 4.4% 1.4% 1.6% 0% Vacation Friend/Relative Business Convention Education Other Source: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014 CIC Research, Inc. and Visit California 12

Table 6 MAIN PURPOSE OF TRIP OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2014) The greatest proportion of overseas visitors to California reported the main purpose of their trip as vacation/holidays (54%). This was followed by those whose main purpose was visiting friends/relatives (18%), and those whose main purpose was business/professional (13%). Visitors from Australia (79%), and Italy (73%) had the highest proportion of visitors whose main purpose was vacation/holidays, while visitors from India (26%) and Mexico (air) (23%) had the highest proportion of visitors whose main purpose was visiting friends/relatives. Visitors from India (35%) and Japan and (33%) had the highest proportion of visitors whose main purpose was business/professional. COUNTRY OF RESIDENCE OF VISITORS TOTAL CHINA SOUTH MEXICO MAIN PURPOSE OF TRIP* OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA w/o HK INDIA JAPAN KOREA BRAZIL (AIR) ESTIMATED TRAVELERS 7,262,000 686,000 439,000 445,000 178,000 589,000 996,000 262,000 575,000 397,000 220,000 542,000 (Number of Respondents) (7,244) (679) (524) (367) (197) (582) (516) (221) (1,172) (164) (249) (334) Vacation/Holidays 53.7% 64.4% 68.3% 62.5% 73.3% 79.0% 42.8% 19.1% 32.6% 44.2% 55.9% 54.7% Visit Friends/Relatives 17.8 19.9 11.0 18.0 6.2 10.7 18.1 26.3 16.2 16.3 11.4 22.6 Business/Professional 13.3 9.8 8.3 9.3 7.4 4.8 14.4 34.8 32.6 14.4 8.8 10.9 Attend A Convention 8.2 4.7 7.2 4.8 6.0 3.6 11.1 15.4 12.7 11.5 6.0 4.9 Education 5.6 0.7 4.7 3.5 6.8 0.9 11.9 2.7 4.8 12.0 15.4 4.1 Other 1.4 0.4 0.5 1.8 0.3 1.0 1.8 1.8 1.2 1.5 2.5 2.8 *Column percentages may not total 100 percent due to rounding. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 13

Figure 6 PURPOSE OF U.S. TRIP OVERSEAS VISITORS TO CALIFORNIA / U.S. (2014) 70% 65.5% 68.2% California Visitors 60% U.S. Visitors 50% 40% 33.9% 30.1% 30% 20% 10% 17.7% 15.0% 11.5% 8.8% 7.8% 6.3% 2.7% 2.8% 0% Vacation Friend/Relative Business Convention Education Other Source: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014 CIC Research, Inc. and Visit California 14

Table 7 PURPOSE OF TRIP OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2014) Two-thirds (66%) of overseas visitors to California reported visiting for vacation/holiday purposes, while one-third (34%) were visiting friends/relatives (64% in 2013 were on vacation/holiday, and 32% were visiting friends/relatives), and 18% were on business (20% in 2013). Visitors to California attending a convention/conference/trade show accounted for 12% (the same as in 2013). Visitors were allowed to list more than one purpose of their trip. Visitors from Australia (88%) indicated high proportions of vacationing during their U.S. trip, visitors from Mexico (air) reported high proportions of visiting friends/relatives (40%), while visitors from India (22%) reported high proportions of attending a convention/conference/trade show when compared with visitors from other countries. Visitors to California from Japan (38%) and India (37%) reported a high proportion of visiting for business purposes when compared with visitors from other countries, while visitors from Australia (9%) reported the lowest proportion visiting for this reason. COUNTRY OF RESIDENCE OF VISITORS TOTAL CHINA SOUTH MEXICO PURPOSE OF TRIP* OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA w/o HK INDIA JAPAN KOREA BRAZIL (AIR) ESTIMATED TRAVELERS 7,262,000 686,000 439,000 445,000 178,000 589,000 996,000 262,000 575,000 397,000 220,000 542,000 (Number of Respondents) (7,843) (710) (557) (387) (207) (619) (559) (255) (1,256) (173) (271) (374) Vacation/Holidays 65.5% 74.9% 78.0% 73.7% 79.3% 87.7% 54.3% 36.3% 41.0% 55.6% 69.0% 65.1% Visit Friends/Relatives 33.9 34.8 29.5 28.3 16.5 29.3 31.6 37.3 27.8 32.8 25.8 40.1 Business/Professional 17.7 12.1 12.6 12.0 11.8 8.5 22.4 37.4 38.1 17.6 11.4 14.0 Attend A Convention 11.5 6.7 8.6 8.2 8.1 7.4 15.6 22.1 16.5 12.4 9.4 6.0 Education 7.8 2.2 7.2 4.6 9.3 1.6 15.9 3.4 6.9 13.4 18.5 6.8 Other 2.7 1.0 1.0 2.9 0.3 2.2 4.6 4.8 2.0 1.8 4.0 4.2 *Column percentages may total more than 100 percent due to multiple responses. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc. and Visit California 15

Figure 7 LEISURE RECREATION ACTIVITIES OVERSEAS VISITORS TO CALIFORNIA (2014) Shopping Sightseeing 83.4% 89.0% National Parks/Monuments 51.5% Experience Fine Dining Small Towns/Countryside Amusement/Theme Parks Historical Locations Guided Tours Art Gallery/Museum 44.0% 42.5% 39.9% 35.2% 32.9% 31.4% 0% 20% 40% 60% 80% 100% Source: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014 CIC Research, Inc. and Visit California 16

Table 8 LEISURE-RECREATION ACTIVITIES OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2014) Shopping (89%) followed by sightseeing (83%), visiting national parks/monuments (52%) and fine dining (43%) were the most common leisure and recreation activities enjoyed by overseas visitors to California in 2014. Visitors from Australia had the highest proportion of respondents who mentioned shopping (97%) and sightseeing (91%), while visitors from Germany (69%) and France (66%) had the highest proportion visiting national parks/monuments as a favorite leisure/recreation activity. Experiencing fine dining was mentioned most frequently by visitors from China (55%). COUNTRY OF RESIDENCE OF VISITORS LEISURE/RECREATION TOTAL CHINA SOUTH MEXICO ACTIVITIES* OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA w/o HK INDIA JAPAN KOREA BRAZIL (AIR) ESTIMATED TRAVELERS 7,262,000 686,000 439,000 445,000 178,000 589,000 996,000 262,000 575,000 397,000 220,000 542,000 (Number of Respondents) (6,752) (645) (508) (336) (181) (587) (496) (189) (897) (149) (234) (296) Shopping 89.0% 90.0% 89.1% 86.9% 75.3% 96.7% 94.7% 79.6% 81.5% 74.2% 92.1% 82.3% Sightseeing 83.4 88.8 87.1 80.6 72.4 90.8 84.9 80.5 76.8 76.7 82.8 63.9 National Parks/Monuments 51.5 55.0 69.1 66.0 60.1 63.4 48.1 38.0 21.5 34.7 54.2 21.8 Small Towns/Countryside 44.0 51.9 61.7 49.5 43.7 47.0 45.9 34.3 16.0 15.5 37.0 22.3 Experience Fine Dining 42.5 39.3 34.8 46.7 25.0 48.3 55.3 27.3 40.5 22.7 28.4 33.5 Amusement/Theme Parks 39.9 30.9 32.9 40.3 29.0 58.2 48.9 31.1 24.6 37.0 50.5 43.1 Historical Locations 35.2 42.7 53.7 35.3 33.7 50.1 24.9 23.7 15.8 21.8 40.2 23.1 Guided Tours 32.9 44.9 36.4 30.3 29.9 62.6 27.4 21.2 19.2 19.9 24.5 13.3 Art Gallery/Museum 31.4 30.9 26.6 27.6 25.7 45.7 41.6 24.1 17.1 29.6 32.4 14.0 Casinos/Gambling 24.0 25.5 27.5 32.2 16.5 41.3 20.3 14.7 7.7 15.6 22.6 8.8 Concert/Play/Musical 20.6 18.6 17.7 17.2 10.2 42.1 13.2 11.3 13.0 21.5 37.7 4.4 Cultural/Ethnic Heritage Sites 19.7 21.2 28.4 16.8 26.2 29.1 22.2 11.5 7.7 17.7 13.2 14.2 Nightclubs/Dancing 16.7 18.5 18.0 18.3 14.5 27.6 6.5 17.1 4.2 4.2 38.2 14.4 Sporting Event 15.8 14.7 15.7 9.0 8.7 34.7 8.6 10.0 10.6 16.0 16.9 21.8 Visit Am. Indian Comm. 10.3 9.1 12.5 21.1 13.8 12.9 10.0 12.5 1.3 10.0 4.5 4.4 Camping/Hiking 9.4 11.7 19.7 12.1 6.8 10.3 4.6 10.3 2.3 7.0 5.2 2.5 Water Sports 9.1 8.2 11.8 8.2 5.2 16.8 9.5 7.0 6.6 3.6 4.9 2.6 Environ./Eco. Excursions 6.0 4.4 11.8 3.7 11.2 4.0 12.0 2.5 1.0 6.2 2.0 1.5 Golfing/Tennis 4.1 4.6 4.3 2.2 3.1 3.7 3.1 5.6 7.2 8.5 0.4 1.4 Snow Sports 2.5 2.6 1.7 0.6 0.5 7.6 1.5 3.0 0.3 1.3 3.0 - Hunting/Fishing 1.9 1.2 1.4 0.2 1.7 3.1 2.0 0.7 0.6 2.4 0.9 1.9 *Multiple response. Only responses 1.0 percent or greater are detailed. **Caution - Small sample size. Source: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc. and Visit California 17

Figure 8 ADVANCE TRIP DECISION OVERSEAS VISITORS TO CALIFORNIA / U.S. (2014) 40% 30% California Visitors Avg. = 106 Days Median = 80 Days 24.3% 23.8% U.S. Visitors Avg. = 97 Days Median = 60 Days 20% 10% 9.6% 11.6% 19.6% 20.8% 20.0% 19.2% 12.5% 11.4% 14.7% 12.4% 0% 0-14 15-30 31-60 61-120 121-180 181 + Days Source: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014 CIC Research, Inc. and Visit California 18

Table 9 ADVANCE TRIP DECISION OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2014) The median time period for overseas visitors decision to travel was 80 days before the actual trip. In the 2013 study, this decision was made a median of 65 days prior to the trip, (two weeks less). Respondents from Australia and Germany had the longest planning time frame, with a median of 150 and 120 days respectively. India, South Korea, and Mexico (air) had the shortest planning time frame with a median of 40, 45 and 45 days respectively. COUNTRY OF RESIDENCE OF VISITORS TOTAL CHINA SOUTH MEXICO ADVANCE TRIP DECISION* OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA w/o HK INDIA JAPAN KOREA BRAZIL (AIR) ESTIMATED TRAVELERS 7,262,000 686,000 439,000 445,000 178,000 589,000 996,000 262,000 575,000 397,000 220,000 542,000 (Number of Respondents) (7,686) (681) (541) (381) (203) (601) (548) (252) (1,261) (171) (274) (352) 14 Days or Less 9.6% 8.0% 3.7% 10.2% 6.5% 3.8% 9.1% 19.2% 15.7% 10.3% 6.1% 17.9% 15-30 Days 19.6 11.1 10.1 11.8 15.6 7.1 30.0 28.5 25.1 35.2 14.0 26.5 31-60 Days 19.2 15.7 15.4 16.5 15.7 10.4 22.5 21.6 25.5 27.4 25.3 26.1 61-120 Days 24.3 22.3 28.4 25.5 26.7 24.3 26.5 24.7 20.0 15.8 35.0 15.3 121-180 Days 12.5 15.0 16.4 19.8 18.3 15.2 9.3 4.3 9.0 6.3 10.7 9.2 181 or More Days 14.7 28.0 26.0 16.3 17.1 39.1 2.6 1.5 4.7 5.1 9.0 5.1 TOTAL 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Average No. of Days 105.6 149.1 137.7 123.5 118.9 177.0 70.0 53.2 71.6 62.5 97.9 67.5 Median No. of Days 80.0 100.0 120.0 90.0 90.0 150.0 60.0 40.0 60.0 45.0 90.0 45.0 *Column percentages may not total 100 percent due to rounding. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014 CIC Research, Inc. and Visit California 19

Figure 9 ADVANCE AIRLINE DECISION OVERSEAS VISITORS TO CALIFORNIA / U.S. (2014) 40% California Visitors Avg. = 74 Days Median = 50 Days U.S. Visitors Avg. = 71 Days Median = 50 Days 30% 27.3% 26.2% 20% 15.9% 18.4% 19.2% 19.6% 20.0% 19.9% 10% 9.9% 8.9% 7.8% 7.0% 0% 0-14 15-30 31-60 61-120 121-180 181 + Days Source: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014 CIC Research, Inc. and Visit California 20

Table 10 ADVANCE AIRLINE TICKET RESERVATION OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2014) In 2014 an overseas visitor committed to an airline ticket reservation a median of 50 days prior to the actual trip (47 days in 2013). Eight percent of travelers booked their airline reservations six months or more in advance of their trip (seven percent in 2013). Visitors from Australia, Germany and the U.K. made their airline travel reservations each a median of 90 days in advance. By contrast, visitors from India booked their airline tickets a median of only 28 days in advance of their U.S. trip. COUNTRY OF RESIDENCE OF VISITORS ADVANCE AIRLINE TOTAL CHINA SOUTH MEXICO RESERVATIONS* OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA w/o HK INDIA JAPAN KOREA BRAZIL (AIR) ESTIMATED TRAVELERS 7,262,000 686,000 439,000 445,000 178,000 589,000 996,000 262,000 575,000 397,000 220,000 542,000 (Number of Respondents) (7,425) (655) (525) (368) (195) (592) (530) (244) (1,182) (166) (271) (340) 14 Days or less 15.9% 11.0% 8.0% 13.2% 11.3% 5.8% 16.0% 30.8% 25.4% 22.1% 8.4% 31.4% 15-30 Days 27.3 15.8 13.7 25.9 19.1 14.1 43.0 32.3 30.6 43.8 32.6 32.9 31-60 Days 19.2 17.0 19.6 18.6 16.3 15.5 23.1 20.5 21.9 16.2 22.0 17.6 61-120 Days 20.0 20.6 27.0 19.7 24.6 24.0 15.0 14.0 15.1 12.4 28.5 9.7 121-180 Days 9.9 15.2 16.1 17.0 18.8 16.8 2.6 2.5 4.5 2.4 6.7 7.0 181 or More Days 7.8 20.4 15.6 5.6 10.0 23.7 0.4-2.4 3.2 1.8 1.4 TOTAL 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Average No. of Days 74.2 116.6 105.1 79.3 94.7 125.0 44.0 37.3 50.7 43.6 65.1 43.6 Median No. of Days 50.0 90.0 90.0 60.0 80.0 90.0 30.0 28.0 30.0 30.0 60.0 30.0 *Column percentages may not total 100 percent due to rounding. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 21

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Table 11 ADVANCE INTERNATIONAL AIRLINE TICKET PAYMENT OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2014) In 2014 an overseas visitor paid for their international airline ticket a median of 45 days prior to the actual trip (42 days in 2013). Almost six percent of travelers paid for their airline reservations six months or more in advance of their trip. Visitors from Australia paid for their international airline tickets a median of 3 months in advance. By contrast, visitors from Mexico (air) paid for their airline tickets a median of only 21 days in advance of their U.S. trip. COUNTRY OF RESIDENCE OF VISITORS ADVANCE AIRLINE TOTAL CHINA SOUTH MEXICO PAYMENT* OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA w/o HK INDIA JAPAN KOREA BRAZIL (AIR) ESTIMATED TRAVELERS 7,262,000 686,000 439,000 445,000 178,000 589,000 996,000 262,000 575,000 397,000 220,000 542,000 (Number of Respondents) (7,184) (667) (510) (367) (185) (606) (522) (219) (1,104) (164) (254) (336) 14 Days or less 20.6% 0.1% 0.1% 0.2% 0.2% 0.1% 0.2% 0.3% 0.3% 0.4% 0.1% 0.3% 15-30 Days 26.0 0.1 0.2 0.3 0.2 0.1 0.4 0.3 0.3 0.4 0.3 0.3 31-60 Days 18.1 0.2 0.2 0.2 0.1 0.2 0.2 0.2 0.2 0.1 0.2 0.2 61-120 Days 19.6 0.3 0.3 0.2 0.2 0.2 0.1 0.1 0.1 0.1 0.2 0.1 121-180 Days 9.9 0.1 0.2 0.1 0.1 0.2 0.0 0.0 0.0 0.0 0.1 0.0 181 or More Days 5.7 0.1 0.1 0.1 0.1 0.2 0.0-0.0 0.0 0.0 0.0 TOTAL 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Average No. of Days 70.0 99.3 94.5 74.4 84.2 120.5 42.5 37.5 49.8 42.2 69.0 43.3 Median No. of Days 45.0 84.0 77.0 60.0 60.0 90.0 30.0 30.0 30.0 30.0 60.0 21.0 PURCHASED TRAVEL INSURANCE (Number of Respondents) (7,211) (690) (523) (336) (183) (614) (468) (236) (1,248) (153) (259) (322) Yes 63.3% 68.6% 51.9% 38.1% 79.3% 88.7% 73.7% 80.1% 53.6% 76.3% 74.9% 22.3% No 36.7% 31.4% 48.1% 61.9% 20.7% 11.3% 26.3% 19.9% 46.4% 23.7% 25.1% 77.7% *Column percentages may not total 100 percent due to rounding. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 23

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Table 12 MEANS OF BOOKING AIR TRIP AND LODGING OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2014) In 2014, overseas visitors to California made their airline reservations predominantly via a travel agent (29%), directly with the airline (29%), or via an internet booking service (27%). In 2013, these results were 31%, 28% and 24% respectively. Visitors from Australia reported the highest use of travel agents in booking their air trip (56%). Visitors from Mexico (air) reported the highest use of booking directly with the airline (46%), while visitors from China, South Korea and France (33%, 31% and 31% respectively) reported the highest use of an Internet booking service to make airline reservations. In comparison, when making lodging reservations, 33% of visitors to California made use of an Internet booking service, 18% contacted the lodging establishment directly, and 14% used a travel agency office. Visitors from Australia, Germany and China (39% each respectively) reported the highest proportion who booked their lodging via an Internet booking service. Visitors from Australia reported the highest proportion who booked directly with the lodging establishment (30%), and the highest use of a travel agency office in booking their lodging (33%). COUNTRY OF RESIDENCE OF VISITORS MEANS OF BOOKING AIR TRIP* TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) ESTIMATED TRAVELERS 7,262,000 686,000 439,000 445,000 178,000 589,000 996,000 262,000 575,000 397,000 220,000 542,000 (Number of Respondents) (7,943) (710) (566) (387) (205) (618) (574) (264) (1,282) (177) (274) (375) Travel Agency Office 29.2% 19.9% 32.2% 21.2% 43.1% 55.6% 17.8% 28.4% 36.3% 23.1% 22.8% 25.0% Directly with the Airline 28.8 39.7 27.9 32.5 19.0 26.2 22.7 17.9 26.4 21.1 32.0 45.7 Internet Booking Service 26.5 21.1 28.1 30.9 21.2 18.5 33.3 15.5 18.8 30.7 31.0 21.6 Corporate Travel Dept. 12.4 8.5 12.5 10.8 6.1 4.7 18.5 33.7 15.5 13.7 10.7 10.0 Tour Operator/Travel Club 9.6 14.0 4.9 9.2 14.3 5.5 14.3 9.2 3.9 18.0 14.3 4.1 Other 1.2 1.4 0.8 0.3 2.2 0.7 1.5 0.4 2.2 1.5 2.2 2.5 TOTAL 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% MEANS OF BOOKING LODGING (Number of Respondents) (7,626) (704) (536) (375) (199) (611) (539) (241) (1,252) (174) (265) (349) Yes, Booked by** 70.4% 70.1% 72.8% 65.6% 78.3% 86.5% 77.5% 53.6% 77.5% 60.7% 70.2% 57.1% Internet Booking Service 33.4% 29.5% 39.4% 36.6% 30.0% 39.4% 38.7% 10.9% 24.9% 33.0% 37.9% 21.5% The Lodging Establish. 17.8 20.6 20.1 13.9 12.8 29.5 14.4 13.9 15.9 9.8 18.1 17.3 Travel Agency Office 13.8 12.5 17.5 11.0 29.1 33.4 9.1 3.9 20.9 5.2 7.9 13.4 Corporate Travel Dept. 8.0 6.9 6.2 7.7 5.0 3.7 10.5 24.3 13.2 6.3 9.3 5.1 Tour Operator/Travel Club 5.7 10.6 4.6 4.5 9.8 5.0 8.5 3.9 3.3 9.5 5.7 2.7 Other 2.8 2.4 4.6 1.4 3.5 2.2 4.0 2.1 3.8 1.1 2.2 2.4 No 29.6% 29.9% 27.2% 34.4% 21.7% 13.5% 22.5% 46.4% 22.5% 39.3% 29.8% 42.9% *Column percentages may not total to 100% due to rounding. ** Multiple Response. Percentages based on total number of respondents. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 25

Figure 10 TRAVEL INFORMATION SOURCES OVERSEAS VISITORS TO CALIFORNIA / U.S. (2014) Airline Online Travel Agency Personal Recommendation Travel Agency Office Travel Guide Corporate Travel Department Tour Operator/Travel Club National/State/City Travel Office Other 15.0% 12.5% 12.2% 12.1% 9.5% 8.4% 8.0% 9.7% 6.1% 5.5% 31.9% 32.2% 29.1% 25.3% 25.2% 22.7% 42.9% 43.5% California Visitors U.S. Visitors Source: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014 CIC Research, Inc. and Visit California 26

Table 13 U.S. TRIP INFORMATION SOURCES OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2014) Trip information sources used by overseas travelers to California in 2014 to plan their trip, consisted of calling the airlines directly (43%), use of an online travel agency (32%), followed by a personal recommendation (29%) and a travel agency office (25%). Use of a travel guide (15%) and corporate travel department (12%) rounded out the top information sources. These results are very similar to those from the previous year. Travelers from Brazil, the U.K., and Mexico (air) (54% 54%, and 52% respectively) reported the highest use of calling the airline directly. The use of an online travel agency as an information source was indicated by the highest proportion of visitors from Brazil and Germany (45% and 42% respectively). Use of a personal recommendation as a source of trip information was greatest among visitors from Brazil (47%), while use of a travel agency office was greatest among visitors from Australia (50%). INFORMATION SOURCES* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 7,262,000 686,000 439,000 445,000 178,000 589,000 996,000 262,000 575,000 397,000 220,000 542,000 (Number of Respondents) (7,882) (708) (565) (386) (203) (616) (566) (255) (1,273) (174) (274) (376) Airline 42.9% 53.6% 37.8% 38.2% 32.0% 37.5% 39.0% 39.0% 39.1% 28.7% 53.7% 51.7% Online Travel Agency 31.9 35.7 41.8 32.6 23.7 39.6 24.3 19.5 18.4 31.1 45.0 24.6 Personal Recommendation 29.1 23.4 30.6 24.0 25.6 33.9 32.4 26.7 16.4 27.6 46.5 26.8 Travel Agency Office 25.2 19.1 30.6 18.2 35.9 49.5 15.1 24.3 37.1 13.3 20.5 20.1 Travel Guide 15.0 14.1 29.6 15.5 15.9 17.5 14.6 8.1 14.5 5.3 18.4 5.0 Corporate Travel Dept. 12.2 9.5 13.2 11.7 9.3 6.4 15.7 33.8 8.0 10.8 15.3 9.9 Tour Operator/Travel Club 9.5 14.5 7.7 10.1 13.7 10.2 13.3 9.6 4.1 16.9 11.9 4.8 Government Travel Office 8.0 4.5 11.6 3.3 16.4 6.4 4.8 5.3 6.2 4.2 26.5 23.5 Other 6.1 6.0 6.9 3.6 3.8 5.2 5.9 4.8 6.6 11.2 7.6 4.5 SOUTH KOREA BRAZIL MEXICO (AIR) *Column percentages may total more than 100% due to multiple responses. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 27

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Table 14 AIRLINE TICKET CLASS AND PREPAID TRIP PACKAGE OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2014) Eight in ten (80%) overseas visitors to California in 2014 used a paid ticket, while 4% used a discount/group fare, and 3% used a frequent flier award ticket. Visitors from Australia, Germany, the U.K., and India reported the highest use of a paid fare (89%, 87%, 87%, and 86% respectively), while visitors from Brazil and Germany reported the highest use of a frequent flier award ticket (7% and 5% respectively), and visitors from South Korea, China, and Japan reported the highest use of a discount/group fare (12%, 10% and 9% respectively). Fifteen percent (15%) of overseas travelers to California traveled with a prepaid inclusive tour package, where airfare, lodging, ground transportation, or other items were prepaid prior to departure. In order to qualify as a package, in the 2014 survey, both prepaid airfare and prepaid accommodations needed to be included at a minimum. Visitors from China, Japan, and France took the greatest advantage of all inclusive tour packages (27%, 21% and 20% respectively). On the other hand, visitors from Brazil and Germany used packages the least (8% and 10% respectively). TYPE OF AIRLINE TICKET* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA 29 CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 7,262,000 686,000 439,000 445,000 178,000 589,000 996,000 262,000 575,000 397,000 220,000 542,000 (Number of Respondents) (7,120) (657) (502) (334) (181) (563) (514) (223) (1,176) (160) (235) (321) Paid Ticket 80.0% 86.5% 86.6% 80.0% 83.5% 89.0% 78.7% 85.6% 70.0% 67.4% 67.8% 56.9% Discount/Group Fare 4.3 1.8 1.4 3.2 0.3 2.1 9.5 1.5 9.3 11.7 2.9 3.7 Frequent Flyer Award Ticket 3.1 2.3 5.2 3.0 3.7 3.7 2.8 0.8 2.3 1.5 7.2 2.2 Paid Upgrade 2.2 3.6 2.1 1.5 1.4 1.4 1.4 0.7 7.2 1.7 2.0 0.9 Non-Revenue 1.4 1.5 0.5 1.9-0.7 0.5 0.4 1.5 4.6 1.7 0.5 Frequent Flyer Upgrade 0.8 0.7 1.2-0.3 0.6 0.2 1.6 1.9 - - 1.0 Don't Know 10.5 6.7 6.2 12.5 11.5 4.1 8.6 9.3 12.7 14.8 20.4 37.1 USE OF PREPAID PACKAGE (Number of Respondents) (7,747) (699) (554) (381) (198) (612) (553) (240) (1,263) (171) (269) (362) YES** 15.0% 18.6% 10.4% 20.3% 19.7% 13.0% 26.8% 13.0% 20.7% 14.6% 8.2% 12.9% Bus/Coach 6.3 5.5 4.5 10.3 8.5 6.8 11.0 4.3 10.1 11.5 2.9 2.8 Attract./Events/Entertain. 6.8 4.7 3.6 9.3 5.5 6.8 17.5 4.5 8.8 8.2 3.7 4.7 Meals 6.4 4.7 3.7 11.8 4.5 6.0 15.2 7.2 7.3 9.7 1.9 3.4 Guided Tours 5.5 4.0 1.6 9.1 7.2 5.5 13.5 3.3 8.5 7.3 0.4 2.2 Tour Guide for Entire Trip 4.1 2.2 3.7 10.9 4.0 1.5 11.5 1.6 4.7 5.3 0.4 1.5 Rental Car 4.7 7.5 4.7 6.9 10.5 2.4 9.8 3.6 1.0 1.8 3.5 5.3 Airfare & Accom. Only 2.3 3.1 1.0 1.7 1.7 1.8 1.9 3.3 6.6 1.3 1.8 2.1 Cruise 2.0 4.1 1.0 2.1-2.5 3.4 2.4 1.6 1.9 0.1 0.1 Recreation 1.5 0.4 1.7 2.4 0.4 1.8 3.8 0.5 2.1 0.3 0.4 1.0 Rail Tickets 1.1 0.3 1.3 0.9-1.1 1.8 0.6 2.4-0.3 - NO 85.0% 81.4% 89.6% 79.7% 80.3% 87.0% 73.2% 87.0% 79.3% 85.4% 91.8% 87.1% *Column percentages may not total 100% due to multiple responses. **Multiple response. Includes all package combinations. Each category not mutually exclusive. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. SOUTH KOREA BRAZIL MEXICO (AIR)

Figure 11 TRAVEL PARTY SIZE OVERSEAS VISITORS TO CALIFORNIA / U.S. (2014) 100% 90.7% 89.7% California Visitors Avg. Party Size: 1.7 80% U.S. Visitors Avg. Party Size: 1.7 60% 40% 20% 9.3% 10.3% 0% Adults Only Adults and Children Source: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014 CIC Research, Inc. and Visit California 30

Table 15 TRAVEL PARTY SIZE OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2014) The mean total party size for all overseas travelers in 2014 was 1.7 persons (1.6 persons in 2013). Overall, 91% of overseas travel parties were adults only and nine percent were adults traveling with children. The greatest proportion of visitors who reported traveling with children was from Mexico (air) (17%), followed by China (15%) and Australia (15%). TRAVEL PARTY SIZE COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 7,262,000 686,000 439,000 445,000 178,000 589,000 996,000 262,000 575,000 397,000 220,000 542,000 SOUTH KOREA (Number of Respondents) (8,002) (715) (570) (390) (208) (623) (576) (264) (1,293) (177) (277) (377) Adults Only 90.7% 91.6% 92.3% 90.4% 91.2% 85.2% 84.9% 94.2% 91.9% 90.8% 94.3% 82.8% Adults and Children 9.3 8.4 7.7 9.6 8.8 14.8 15.1 5.8 8.1 9.2 5.7 17.2 TOTAL 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% BRAZIL MEXICO (AIR) Average Total Party Size 1.7 1.7 1.7 1.7 1.7 1.8 2.0 1.3 1.6 1.8 1.6 1.7 Median Total Party Size 1.0 1.0 1.0 1.0 1.0 2.0 1.0 1.0 1.0 1.0 1.0 1.0 ADULTS ONLY (Number of Respondents) (6,991) (634) (508) (334) (185) (506) (451) (239) (1,155) (156) (251) (305) Average Adult Party Size 1.5 1.5 1.5 1.4 1.5 1.5 1.7 1.2 1.5 1.6 1.5 1.3 Median Adult Party Size 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 ADULTS AND CHILDREN (Number of Respondents) (1,011) (81)* (62)* (56)* (23)* (117) (125) (25)* (138) (21)* (26)* (72)* Average Party Size 3.6 3.6 3.3 3.8 3.5 3.7 3.7 3.4 3.3 3.6 3.3 3.6 Median Party Size 3.0 4.0 3.0 4.0 4.0 4.0 3.0 3.0 3.0 4.0 3.0 4.0 *Caution Small sample size Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 31

Figure 12 GENDER OF OVERSEAS VISITORS OVERSEAS VISITORS TO CALIFORNIA / U.S. (2014) California Visitors 70% 60% 57.3% 54.4% U.S. Visitors 50% 42.7% 45.6% 40% 30% 20% 10% 0% Male Adults Female Adults Source: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014 CIC Research, Inc. and Visit California 32

Table 16 GENDER AND AGE OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2014) Almost six in ten (57%) overseas travelers to California were adult males, and four in ten (43%) were adult females. The average age of traveling adult males was 40 years, versus 38 years for traveling adult females. GENDER AND AGE OF VISITOR* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 7,262,000 686,000 439,000 445,000 178,000 589,000 996,000 262,000 575,000 397,000 220,000 542,000 (Number of Respondents) (7,429) (675) (514) (366) (193) (584) (530) (244) (1,221) (168) (243) (348) MALE ADULTS 57.3% 49.5% 59.5% 53.3% 65.4% 46.9% 53.1% 83.6% 69.3% 56.6% 54.2% 55.5% 18-24 Years 6.0 6.5 9.7 6.2 8.3 6.7 4.6 2.4 3.0 4.8 7.8 8.8 25-34 Years 17.4 14.1 14.1 17.1 24.9 14.8 17.4 36.4 9.4 13.3 19.8 10.7 35-54 Years 23.5 16.7 24.9 17.0 24.6 18.2 25.1 29.2 38.1 28.9 21.1 28.4 55 + Years 10.4 12.2 10.7 12.9 7.7 7.3 5.8 15.7 18.8 9.7 5.6 7.5 Average Male Age 40.4 42.4 40.2 41.0 37.2 39.0 37.7 40.3 46.7 40.7 36.5 38.7 Median Male Age 38.0 40.0 40.0 38.0 34.0 35.0 35.0 36.0 47.0 40.0 34.0 39.0 SOUTH KOREA BRAZIL MEXICO (AIR) FEMALE ADULTS 42.7% 50.5% 40.5% 46.7% 34.6% 53.1% 46.9% 16.4% 30.7% 43.4% 45.8% 44.5% 18-24 Years 8.5 8.8 9.1 14.1 4.8 11.8 12.5 1.9 3.1 5.4 7.6 8.0 25-34 Years 13.2 12.6 13.3 13.1 15.5 13.7 13.1 5.6 5.2 18.2 23.9 16.1 35-54 Years 13.7 12.2 12.1 12.6 9.8 16.6 18.9 4.1 14.8 13.6 9.9 17.1 55 + Years 7.4 16.7 6.0 6.9 4.5 11.1 2.5 4.8 7.6 6.1 4.5 3.4 Average Female Age 38.3 43.1 37.5 36.1 36.3 39.0 34.3 42.9 44.2 37.6 34.1 36.0 Median Female Age 34.0 40.0 32.0 29.0 32.0 37.0 32.0 37.0 44.0 32.0 30.0 33.0 *Column percentages may not total to 100% due to rounding. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 33

Figure 13 INCOME PROFILE OF OVERSEAS VISITORS OVERSEAS VISITORS TO CALIFORNIA / U.S. (2014) <$20K 15.3% 17.5% $20 - $59K 27.7% 27.8% $60 - $99K 21.5% 22.7% $100 - $139K 15.2% 13.5% $140 - $179K 7.4% 6.5% California Visitors Avg. Income = $98,800 >$180K 12.7% 11.9% U.S. Visitors Avg. Income = $90,400 Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014 CIC Research, Inc. and Visit California 34

Table 17 ANNUAL HOUSEHOLD INCOME OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2014) The mean household income for overseas visitors to California in 2014 was $95,782, down from $100,900 in 2013 and $102,600 in 2012 (formatting changed in 2014 to show exact dollar amounts for the income categories). During 2014 visitors from Japan ($129,073), Australia ($116,408), and the U.K. ($111,970), reported the highest average annual income. Visitors from India ($52,195) and Mexico (air) ($56,233) reported the lowest annual household income. ANNUAL HOUSEHOLD INCOME* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 7,262,000 686,000 439,000 445,000 178,000 589,000 996,000 262,000 575,000 397,000 220,000 542,000 (NUMBER OF RESPONDENTS) (4,990) (420) (281) (220) (95)** (423) (401) (143) (884) (124) (160) (203) Under $20,000 15.3% 5.3% 13.7% 13.4% 11.6% 6.2% 21.2% 39.4% 5.3% 15.6% 31.3% 45.6% $20,000 - $59,999 27.7 23.3 19.7 31.0 42.9 19.9 35.3 27.8 19.2 34.6 26.8 31.3 $60,000 - $99,999 21.5 25.0 21.8 32.0 24.4 22.7 16.8 15.2 30.4 20.7 9.1 5.7 $100,000 - $139,999 15.2 19.5 20.4 14.9 10.9 20.7 11.8 8.7 17.5 17.7 11.8 6.0 $140,000 - $179,999 7.4 12.2 9.1 3.1 1.5 12.0 6.3 3.3 9.9 0.9 7.0 2.1 $180,000 and over 12.7 14.9 15.4 5.8 8.6 18.7 8.6 5.7 17.8 10.4 14.0 9.2 TOTAL 100% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% SOUTH KOREA BRAZIL MEXICO (AIR) Average Annual Income $95,800 $112,000 $109,400 $77,500 $69,700 $116,400 $78,700 $52,200 $129,100 $88,600 $81,300 $56,200 Median Annual Income $68,900 $91,900 $83,500 $67,000 $55,300 $105,000 $49,000 $30,300 $97,900 $58,900 $44,700 $25,000 *Column percentages may not total to 100% due to rounding. **Caution - Small sample size. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 35

Figure 14 TOTAL NIGHTS IN THE U.S. OVERSEAS VISITORS TO CALIFORNIA / U.S. (2014) 1 to 3 5.8% 10.7% 4 to 7 17.2% 30.6% 8 to 14 29.5% 31.6% 15 to 21 13.6% 21.2% 22 to 28 29 to 35 36 + 7.4% 4.0% 5.0% 3.4% 8.1% 11.7% California Visitors Median = 14 Nights in U.S. Avg. = 23 Nights in U.S. U.S. Visitors Median = 9 Nights in U.S. Avg. = 18 Nights in U.S. Source: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014 CIC Research, Inc. and Visit California. 36

Table 18 NIGHTS AWAY FROM HOME / FIRST AIR TRIP TO U.S. OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2014) Overseas visitors to California in 2014 stayed an average of 23 nights in the U.S. and 12 nights in California, as compared with 23 nights and 14 nights respectively in 2013. Nationalities varied in their average length of U.S. and California trip. Similar to results from 2013, visitors from India spent the most time in the U.S. (42 nights), while visitors from Japan and Mexico (air) spent the least amount of time in the U.S. (9 nights and 12 nights respectively). Visitors from Australia and China spent the most amount of time in California (13 nights and 11 nights respectively), while visitors from India and Brazil spent the least amount of time in California (3 nights each respectively). More than one-quarter (27%) of overseas visitors to California were on their first trip by air to the U.S. Once again, visitors from China (46%) had the highest proportion traveling on their first trip by air to the U.S., followed by visitors from India (38%), Australia (36%), Italy and South Korea (35% respectively). NIGHTS IN U.S. COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 7,262,000 686,000 439,000 445,000 178,000 589,000 996,000 262,000 575,000 397,000 220,000 542,000 (Number of Respondents) (7,934) (710) (562) (384) (206) (621) (571) (260) (1,298) (174) (274) (364) Average No. Nights 23.4 17.7 25.0 20.3 21.3 23.5 29.6 41.5 9.3 27.7 32.3 12.4 Median No. Nights 14.0 13.0 17.0 14.0 14.0 19.0 14.0 18.0 6.0 9.0 14.0 7.0 SOUTH KOREA BRAZIL MEXICO (AIR) NIGHTS IN CALIFORNIA (Number of Respondents) (6,841) (633) (482) (336) (173) (580) (451) (200) (1,196) (133) (239) (277) Average Nts. in Dest. 12.2 10.9 12.3 11.0 11.7 9.0 16.3 15.9 7.2 17.8 12.8 7.2 Median Nts. in Dest. 7.0 8.0 8.0 7.0 6.0 7.0 7.0 7.0 4.0 6.0 8.0 5.0 FIRST AIR TRIP TO U.S. (Number of Respondents) (7,038) (660) (496) (335) (185) (575) (507) (225) (1,129) (149) (227) (309) Yes 27.1% 12.8% 25.9% 31.6% 34.8% 36.2% 45.5% 38.2% 12.7% 34.6% 21.3% 14.3% No 72.9 87.2 74.1 68.4 65.2 63.8 54.5 61.8 87.3 65.4 78.7 85.7 Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 37

Figure 15 PORT OF ENTRY OF OVERSEAS VISITORS OVERSEAS VISITORS TO CALIFORNIA (2014) Los Angeles, CA 45.5% San Francisco, CA 23.3% New York, NY Other Chicago, IL Miami, FL Las Vegas, NV Atlanta, GA Seattle, WA Newark, NJ Dallas/Ft. Worth, 3.0% 1.6% 1.7% 1.5% 1.6% 1.7% 1.1% 6.0% 8.0% Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014 CIC Research, Inc. and Visit California. 38

Table 19 PORT OF ENTRY OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2014) A high ratio of California ports of entry is expected for overseas visitors to the State. California ports of entry in 2014 (69%) were reported either through Los Angeles (46%) or San Francisco (23%). These results were similar in 2012 and 2013. PORT OF ENTRY* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 7,262,000 686,000 439,000 445,000 178,000 589,000 996,000 262,000 575,000 397,000 220,000 542,000 (Number of Respondents) (8,032) (715) (570) (392) (208) (623) (581) (270) (1,299) (177) (277) (381) Atlanta, GA 1.5% 0.8% 2.9% 0.6% 2.3% 0.1% 0.2% 1.0% 0.2% 1.2% 13.9% 0.6% Chicago, IL 3.0 3.0 7.5 4.0 2.6-3.1 2.9 1.0 1.1 1.3 0.5 Dallas/Ft. Worth, TX 1.1 0.9 1.4 0.9-1.6 - - 0.8 1.7 7.3 2.7 Detroit, MI 0.7 0.4 1.6 1.1 0.4 0.1 0.9-1.2 0.5 2.2 - Honolulu, HI 1.8 0.1 0.6 0.6-5.0 5.5-4.4 1.4 - - Houston, TX 1.4 0.6 1.0 0.4 0.9 0.4 0.5 1.8 0.8-6.7 2.0 Las Vegas, NV 1.7 7.2 3.9 2.0 1.6 0.1 1.3 - - 0.9 3.5 2.0 Los Angeles, CA 45.5 39.0 29.6 48.8 34.0 77.4 42.4 23.1 46.0 50.8 40.5 60.4 Miami, FL 1.6 0.8 0.9 0.8 1.6 0.3-1.2 - - 12.8 0.6 New York, NY 6.0 3.8 4.7 4.1 23.1 3.3 5.6 6.3 1.3 2.9 4.6 1.8 Newark, NJ 1.7 2.6 3.0 1.3 3.2 0.5 1.5 8.7 0.1 - - - Orlando, FL 0.1 0.1 - - - - - - - - 0.8 - San Francisco, CA 23.3 26.8 30.1 24.5 20.6 8.2 25.5 44.0 26.5 26.4 2.0 12.9 Seattle, WA 1.6 2.2 1.4 0.6 2.4 0.3 2.1 3.0 3.8 3.0 - - Washington, DC 1.2 0.6 1.3 0.4 2.1-2.0 0.2 0.2-1.4 0.1 Other 8.0 11.3 10.0 10.1 5.1 2.8 9.3 7.7 13.7 10.0 3.1 16.5 TOTAL 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% SOUTH KOREA BRAZIL MEXICO (AIR) *Column percentages may not total to 100% due to rounding. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 39

Figure 16 OVERNIGHT ACCOMMODATIONS OVERSEAS VISITORS TO CALIFORNIA / U.S. (2014) 75.5% 77.1% California Visitors U.S. Visitors 30.2% 31.8% 6.0% 4.8% Hotel / Motel Private Home Other Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014 CIC Research, Inc. and Visit California. 40

Table 20 OVERNIGHT ACCOMMODATIONS OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2014) Approximately three-fourths (76%) of California visitors chose to stay in a hotel/motel during their stay this year, the same as in 2013. Visitors from Japan and Italy (85% each respectively) followed by Brazil and Australia (83% and 82% respectively) reported the highest use of hotels/ motels. Visitors from Mexico (air) reported the lowest hotel/motel usage (62%), and the highest use of private home accommodation (44%). TYPE OF ACCOMMODATIONS* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 7,262,000 686,000 439,000 445,000 178,000 589,000 996,000 262,000 575,000 397,000 220,000 542,000 (Number of Respondents) (6,341) (602) (465) (314) (161) (541) (358) (180) (1,071) (128) (233) (283) SOUTH KOREA BRAZIL MEXICO (AIR) Hotel / Motel 75.5% 76.1% 79.9% 78.6% 84.6% 82.2% 67.5% 72.6% 85.2% 74.3% 82.8% 61.7% Average Nights in Dest. 8.0 7.7 7.2 7.0 8.8 7.5 11.1 10.5 5.2 10.2 10.6 4.7 Median Nights in Dest. 6.0 7.0 6.0 6.0 6.0 7.0 6.0 6.0 4.0 4.0 7.0 4.0 Private Home 30.2% 31.9% 29.7% 26.2% 19.3% 18.6% 35.5% 33.1% 19.4% 35.6% 22.1% 44.3% Average Nights in Dest. 18.8 14.8 21.5 19.9 20.9 10.1 28.4 26.2 14.5 20.9 17.1 9.1 Median Nights in Dest. 9.0 10.0 8.0 9.0 8.0 7.0 13.0 9.0 7.0 9.0 10.0 6.0 Other 6.0% 4.3% 5.2% 5.0% 6.0% 8.1% 6.2% 2.5% 2.3% 4.2% 3.9% 1.2% *Column percentages may not total to 100% due to multiple responses. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 41

Figure 17 TRANSPORTATION IN THE U.S. OVERSEAS VISITORS TO CALIFORNIA / U.S. (2014) Air Travel between U.S. Cities Rented Auto Auto, Private or Company City Subway/Tram/Bus Taxicab/Limousine Bus between Cities Ferry/River Taxi/Srt Scenic Cruise Railroad between Cities Rented Bicycle/Motorcycle Cruise Ship/River Boat 1+ Nights Motor Home/Camper 10.2% 9.6% 6.9% 6.5% 4.9% 3.0% 4.0% 4.6% 1.8% 0.9% 18.5% 17.8% 30.0% 35.3% 38.3% 32.1% 31.3% 30.9% 31.4% 33.1% California Visitors U.S. Visitors 44.8% 43.7% Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014 CIC Research, Inc. and Visit California. 42

Table 21 TRANSPORTATION IN THE U.S OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2014) Transportation in the U.S. used by visitors to California in 2014 was predominantly airlines (45%), rented autos (44%), company/private auto (38%), taxi/cab/limousines and city subway/tram/bus (31% each respectively). Visitors from Australia made the highest use of airlines (71%) as well as city subway/tram/bus (48%) and taxi/cab/limousines (53%) to travel around the U.S. Visitors to California from Germany and Brazil (64%, and 59% respectively) made the highest use of a rented auto, while the highest use of a company or private auto was among visitors from China as well as Mexico (air) (49% and 44% respectively). TRANSPORTATION IN U.S.* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 7,262,000 686,000 439,000 445,000 178,000 589,000 996,000 262,000 575,000 397,000 220,000 542,000 (Number of Respondents) (7,079) (642) (518) (339) (193) (578) (512) (215) (1,150) (156) (234) (289) Air Travel btw. U.S. Cities 44.8% 34.1% 42.6% 34.1% 46.8% 70.9% 44.9% 52.1% 31.3% 37.6% 58.1% 21.9% Rented Auto 43.7 45.6 63.6 51.4 55.9 39.3 36.4 16.9 33.1 33.8 58.8 40.7 Company or Private Auto 38.3 33.4 28.0 31.2 31.1 41.6 49.1 29.4 28.4 28.0 38.0 44.3 City Subway/Tram/Bus 31.3 32.5 39.9 35.1 24.3 47.7 26.9 32.9 24.4 29.9 23.1 14.5 Taxi/Cab/Limousine 31.4 36.0 25.3 26.9 21.8 53.3 20.9 41.8 42.4 29.1 20.7 21.7 Bus between Cities 18.5 17.1 16.6 22.2 19.8 26.2 14.8 26.5 16.9 32.4 16.1 16.4 Ferry/River Taxi/Short Scenic Cruise 10.2 13.9 12.7 8.6 13.0 23.2 6.8 8.5 4.6 7.5 7.6 2.8 Railroad between Cities 6.9 6.0 7.8 4.1 3.9 10.8 6.7 11.1 9.1 3.6 1.3 4.6 Rented Bicycle /Motorcycle/Moped 4.9 5.6 5.8 7.1 8.7 7.7 3.3 1.4 6.0 1.2 7.4 1.1 Cruise Ship/River Boat 1+ Nights 4.0 8.1 4.6 4.0 4.6 8.3 2.5 4.2 0.4 2.4 2.9 1.0 Motor Home/Camper 1.8 1.7 4.2 0.5 0.7 2.3 0.3 6.1 0.4 2.2 0.6 - SOUTH KOREA BRAZIL MEXICO (AIR) *Column percentages may not total to 100% due to multiple responses. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 43

Figure 18 PAYMENT METHOD FOR TRIP EXPENSES OVERSEAS VISITORS TO CALIFORNIA / U.S. (2014) Purchases Using Credit Card 43.9% 41.4% Cash from Home/Travelers Checks 26.8% 32.3% Cash Adv./Wdrawal Using Credit Card Cash Adv./Wdrawal Using Debit Card 6.0% 5.2% 17.6% 15.6% California Visitors U.S. Visitors Purchases Using Debit Card 5.8% 5.5% Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014 CIC Research, Inc. and Visit California. 44

Table 22 PAYMENT METHODS FOR TRIP EXPENSES OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2014) The question concerning payment methods for trip expenses used by visitors to California was changed in 2012 and is therefore not comparable in years prior to 2012. Similar to results in 2013, purchases in 2013 using a credit card (44%) followed by cash from home/travelers checks (27%) were the predominant forms of trip expense payment methods. These were followed by cash advance/withdrawal using a credit card (18%). Visitors to California in 2014 from China (57%) followed by visitors from Germany (56%), Italy (53%), and Japan (52%) were most likely to use a credit card as a payment method. On the other hand, cash from home/travelers checks was most likely to be used by visitors from France and Germany (27% and 25% respectively). Visitors from France and Germany also had the highest propensity to use a cash advance/withdrawal using a credit card (27% and 25% respectively), while visitors from Australia had the highest propensity to use a cash advance/withdrawal using a debit card (16%), as well as to make purchases using a debit card (16%). TRIP EXPENSES PAYMENT METHOD* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 7,262,000 686,000 439,000 445,000 178,000 589,000 996,000 262,000 575,000 397,000 220,000 542,000 (Number of Respondents) (5,797) (490) (393) (278) (146) (468) (400) (147) (1,082) (145) (191) (239) Purchases Using Credit Card 43.9% 33.9% 56.0% 37.0% 52.6% 33.8% 57.3% 44.5% 52.3% 31.0% 36.3% 30.0% Cash from Home/Travelers Checks 26.8 32.3 12.4 28.5 24.0 18.8 23.7 23.2 29.5 40.9 43.0 42.2 Cash Adv./Wdrawal Using Credit Card 17.6 15.6 25.2 26.6 16.2 15.6 11.9 18.2 16.1 20.2 12.4 14.9 Cash Adv./Wdrawal Using Debit Card 6.0 9.8 4.1 3.9 3.5 15.9 2.9 8.4 0.9 6.0 3.9 8.3 Purchases Using Debit Card 5.8 8.4 2.3 4.0 3.8 15.9 4.2 5.6 1.2 1.9 4.4 4.6 SOUTH KOREA BRAZIL MEXICO (AIR) *Column percentages may not total to 100% due to rounding. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 45

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Table 23 TRIP EXPENDITURES OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2014) Overseas visitors to California in 2014 spent an estimated $1,872 per capita in California. Total spending in California by the 7.3 million overseas visitors in 2014 was an estimated $13.6 billion in the state out of their total spending in the U.S. of $26.1 billion. Visitors from South Korea reported the highest average spending in California of $2,430 per visitor. The lowest average spending $970 was reported by visitors to California from Mexico. COUNTRY OF RESIDENCE OF VISITORS VISITOR SPENDING* TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN TOTAL VISITORS TO THE U.S. 34,419,016 3,972,655 1,968,536 1,624,604 934,066 1,276,124 2,188,387 961,790 3,579,363 1,449,538 2,263,865 2,357,676 Total Spending in the U.S. ($ Mil.) $110,675 $9,466 $5,105 $4,806 $2,545 $4,607 $8,775 $4,127 $11,576 $5,197 $7,372 $3,285 Spending in the U.S. per Visitor $3,216 $2,383 $2,593 $2,958 $2,725 $3,610 $4,010 $4,291 $3,234 $3,586 $3,257 $1,393 CALIFORNIA VISITORS SPENDING AND NIGHTS ESTIMATED VISITORS TO CA 7,262,000 686,000 439,000 445,000 178,000 589,000 996,000 262,000 575,000 397,000 220,000 542,000 (Number of Respondents) (3,277) (305) (214) (171) (70)** (301) (144) (86)** (565) (78)** (97)** (151) Total Spending in CA ($ Mil.) $13,591 $905 $720 $786 $280 $914 $2,244 $481 $1,173 $965 $442 $526 Est. Spending in CA per Visitor $1,872 $1,319 $1,641 $1,765 $1,574 $1,553 $2,253 $1,835 $2,041 $2,430 $2,008 $970 Est. Spending in CA per Day $153 $121 $133 $160 $135 $173 $138 $115 $283 $137 $157 $135 Average Nights in CA 12.2 10.9 12.3 11.0 11.7 9.0 16.3 15.9 7.2 17.8 12.8 7.2 Median Nights in CA 7.0 8.0 8.0 7.0 6.0 7.0 7.0 7.0 4.0 6.0 8.0 5.0 SPENDING IN THE U.S. BY VISITORS TO CA* Total Spending in U.S. ($ Mil.) $26,068 $1,469 $1,464 $1,450 $510 $2,388 $4,075 $1,255 $1,516 $1,501 $1,115 $905 Spending in U.S. per CA Visitor $3,590 $2,141 $3,335 $3,257 $2,866 $4,054 $4,092 $4,790 $2,636 $3,782 $5,067 $1,670 Nights in U.S.-- CA Visitors 23.4 17.7 25.0 20.3 21.3 23.5 29.6 41.5 9.3 27.7 32.3 12.4 SPENDING IN THE U.S. BY CATEGORY (%) Lodging in U.S. (3,277) (305) (214) (171) (70)** (301) (144) (86)** (565) (78)** (97)** (151) Air Transport in U.S. 30.4% 29.2% 38.2% 30.6% 25.7% 27.2% 27.3% 40.8% 47.5% 34.0% 22.3% 16.3% Entertainment 6.6% 2.3% 4.3% 7.0% 5.9% 8.1% 7.8% 11.3% 1.7% 5.9% 6.6% 8.9% Food and Beverages 12.5% 17.2% 11.3% 16.9% 11.9% 16.0% 8.0% 7.9% 8.1% 9.1% 14.1% 14.6% Ground Trans. in U.S. 18.1% 26.7% 22.4% 19.5% 29.5% 18.6% 11.3% 14.3% 17.3% 18.7% 14.0% 16.0% Gifts and Souvenirs 6.2% 5.6% 5.4% 5.7% 8.5% 4.9% 7.9% 8.4% 6.4% 7.0% 6.7% 7.0% Other 21.1% 14.1% 13.7% 14.4% 15.8% 19.7% 30.5% 11.3% 14.9% 20.8% 34.4% 32.9% * Spending estimates were based on SIAT survey data and revised by Tourism Economics for Visit California, August 2014. **Caution - Small sample size. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014.... CIC Research, Inc. and Tourism Economics SOUTH KOREA BRAZIL MEXICO (AIR) 47

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Table 24 EXPENDITURES OVERSEAS VISITORS WHO REPORTED ONLY CALIFORNIA DESTINATIONS* (2014) More than four in ten (44%) overseas visitors to California in 2014 did not visit any other state in the U.S. while on their international trip. Visitors who only visited California during their U.S. trip reported spending $2,204 per capita in California. This was higher than the average spending in California of $1,872 reported for All Overseas visitors to California. As would be expected the California-only visitors reported longer lengths of stay in California (15.5 days v. 12.2 days). Average daily spending by California only visitors was $142 per day, which was lower than the average daily spending of $156 per day reported for all overseas visitors to California. AVERAGE PER VISITOR TRIP EXPENDITURES OVERSEAS TRAVELERS WHO ONLY VISITED CALIFORNIA ON THEIR U.S. TRIP ALL OVERSEAS VISITORS TO CALIFORNIA (NUMBER OF RESPONDENTS) (1,455) (3,277) SPENDING IN CALIFORNIA (est.)** $2,204 $1,872 PER DAY $142 $153 SPENDING IN THE U.S. BY VISITORS TO CALIFORNIA (%) AIR TRANSPORT IN U.S. 4% 7% GROUND TRANSPORT IN U.S. 7% 6% LODGING 33% 30% FOOD, BEVERAGES 18% 18% GIFTS, SOUVENIRS 23% 21% ENTERTAINMENT 10% 12% OTHER 6% 5% AVERAGE NIGHTS IN CALIFORNIA 15.5 12.2 *Overseas visitors could report up to eight U.S. destinations. ** Spending estimates were based on SIAT survey data and revised by Tourism Economics for Visit California, August 2014. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc. and Tourism Economics. 49

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OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA* (2014) * Leisure visitors were defined as those visitors whose main purpose of trip was vacation/holidays or visiting friends and relatives. 51

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Table 25 RESIDENCE OF OVERSEAS AND MEXICAN LEISURE VISITORS TO THE UNITED STATES AND CALIFORNIA (2014) UNITED STATES CALIFORNIA ESTIMATED ESTIMATED CALIFORNIA LEISURE 2013/2014 LEISURE 2013/2014 SHARE OF VISITORS PERCENT VISITORS PERCENT VISITORS FROM RESIDENCE OF VISITORS TO THE U.S. CHANGE TO CALIFORNIA CHANGE* THIS COUNTRY EUROPE 10,835,000 10.0% 2,099,000 17.3% 19.4% W. EUROPE 10,164,000 9.8% 1,936,000 14.7% 19.0% Austria 151,000 11.0% 31,000 0.0% 20.5% Belgium 194,000 2.1% 34,000 3.0% 17.5% Denmark 232,000 17.8% 51,000-7.3% 22.0% France 1,262,000 6.9% 359,000 13.2% 28.4% Germany 1,488,000 7.0% 348,000 11.9% 23.4% Ireland 339,000 32.9% 100,000 44.9% 29.5% Italy 721,000 17.6% 141,000 15.6% 19.6% Netherlands 451,000 1.6% 102,000 25.9% 22.6% Norway 239,000 21.3% 39,000 18.2% 16.3% Spain 561,000 16.1% 75,000 41.5% 13.4% Sweden 438,000 21.0% 75,000 17.2% 17.1% Switzerland 380,000 1.3% 85,000-1.2% 22.4% United Kingdom 3,353,000 7.5% 579,000 21.9% 17.3% E. EUROPE 640,000 13.3% 169,000 69.0% 26.4% CARIBBEAN 1,033,000 37.2% 12,000 71.4% 1.2% Note: Represents a sample size of less than 50 visitors to California who gave a main purpose of trip, or a response of less than 0.05%. Countries and World Region visitor volumes are independently estimated and may not sum to total visitors. * Large variances may occur due to small sample sizes. 53

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Table 25 (Cont.) UNITED STATES CALIFORNIA ESTIMATED ESTIMATED CALIFORNIA LEISURE 2013/2014 LEISURE 2013/2014 SHARE OF VISITORS PERCENT VISITORS PERCENT VISITORS FROM RESIDENCE OF VISITORS TO THE U.S. CHANGE TO CALIFORNIA CHANGE* THIS COUNTRY SOUTH AMERICA 4,521,000 8.2% 316,000-8.9% 7.0% Argentina 591,000 1.5% 43,000 7.5% 7.3% Brazil 1,831,000 10.8% 148,000-7.5% 8.1% Chile 188,000 13.9% 25,000 47.1% 13.3% Colombia 731,000 32.7% 50,000 16.3% 6.8% Ecuador 289,000 26.2% 16,000 300.0% 5.5% Peru 206,000 12.6% 20,000 66.7% 9.7% Venezuela 531,000-24.7% 12,000-82.4% 2.3% Other South America 154,000 36.3% 2,000-33.3% 1.3% CENTRAL AMERICA (Excluding Mexico) 713,000 22.7% 101,000 124.4% 14.2% Costa Rica 147,000 8.9% 17,000 466.7% 11.6% Guatemala 190,000 38.7% 43,000 87.0% 22.6% Panama 107,000 3.9% 1,000-66.7% 0.9% Other Central America 269,000 30.6% 40,000 150.0% 14.9% AFRICA 322,000 23.8% 29,000 45.0% 9.0% South Africa, Rep. of 67,000 26.4% 12,000 0.0% 17.9% Other Africa 255,000 23.2% 17,000 88.9% 6.7% OCEANIA 1,353,000 8.9% 662,000 8.5% 48.9% Australia 1,132,000 7.4% 528,000 8.4% 46.6% New Zealand 217,000 24.7% 119,000 19.0% 54.8% Note: -- Represents a sample size of less than 50 visitors to California who gave a main purpose of trip, or a response of less than 0.05%. Countries and World Region visitor volumes are independently estimated and may not sum to total visitors. * Large variances may occur due to small sample sizes. 55

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Table 25 (Cont.) UNITED STATES CALIFORNIA ESTIMATED ESTIMATED CALIFORNIA LEISURE 2013/2014 LEISURE 2013/2014 SHARE OF VISITORS PERCENT VISITORS PERCENT VISITORS FROM RESIDENCE OF VISITORS TO THE U.S. CHANGE TO CALIFORNIA CHANGE* THIS COUNTRY ASIA 6,450,000 6.9% 1,442,000 18.6% 22.4% Hong Kong 81,000 22.7% 48,000 41.2% 59.3% India 409,000 12.7% 119,000 16.7% 29.1% Indonesia 56,000 7.7% 30,000 25.0% 53.6% Japan 2,813,000-2.5% 281,000 34.4% 10.0% Korea, South 1,065,000 11.3% 240,000-4.0% 22.5% Malaysia 35,000-22.2% 16,000-38.5% 45.7% People's Republic of China 1,217,000 27.3% 606,000 24.9% 49.8% Philippines 150,000-3.2% 77,000-4.9% 51.3% Republic of China (Taiwan) 240,000-1.2% 127,000 18.7% 52.9% Singapore 77,000 22.2% 33,000 3.1% 42.9% Thailand 47,000 6.8% 20,000 0.0% 42.6% MIDDLE EAST 800,000 19.2% 194,000 20.5% 24.3% Israel 241,000 18.1% 37,000-2.6% 15.4% Saudi Arabia 193,000 28.7% 50,000 28.2% 25.9% Turkey 101,000 3.1% 26,000 8.3% 25.7% Other Middle East 265,000 21.0% 81,000 35.0% 30.6% Total Overseas Leisure Visitors 26,122,000 10.3% 5,193,000 15.2% 19.9% (Number of Respondents) (30,550) (4,932) Mexico (Air Travelers Only) 1,717,000 13.0% 419,000 7.2% 24.4% Note: -- Represents a sample size of less than 50 visitors to California who gave a main purpose of trip, or a response of less than 0.05%. Countries and World Region visitor volumes are independently estimated and may not sum to total visitors. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 57

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Table 26 MAIN DESTINATION BY STATE OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2014) California was the main U.S. state destination for more than three-quarters (77%) of overseas leisure travelers to California in 2014, slightly higher than the proportion from previous years. The highest proportion of leisure travelers, with California as their main destination, was from France (89%), followed by Mexico (air) and China (88% and 86% respectively). Australia once again reported the lowest proportion of leisure travelers with California as their main destination (51%). This result was up from 34% in 2013. MAIN DESTINATION* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 5,193,000 579,000 348,000 359,000 141,000 528,000 606,000 119,000 281,000 240,000 148,000 419,000 (Number of Respondents) (3,309) (424) (268) (202) (102) (285) (162) (65)** (399) (59)** (132) (234) California 77.3% 79.3% 73.3% 89.4% 76.8% 51.3% 86.3% 77.9% 84.2% 80.7% 66.1% 88.3% New York 4.5 1.0 2.1 2.4 13.5 12.9 4.9 4.3 0.5 1.3 1.3 2.8 Nevada 3.6 7.0 5.5 3.4 1.2 2.6 0.7 3.4 1.4 0.4 17.5 2.1 Hawaiian Islands 3.1 2.0 6.2 1.2 1.0 4.0 1.7 0.7 6.3 4.4 3.3 0.2 Florida 1.5 1.6 1.2-3.0 2.4 - - 0.7 4.7 3.8 0.5 *Visitors may report only one destination States with less than one percent response were not listed. **Caution Small sample size Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014 CIC Research, Inc. and Visit California. SOUTH KOREA BRAZIL MEXICO (AIR) 59

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Table 27 CALIFORNIA MSAs VISITED OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2014) The most common Metropolitan Statistical Areas (MSAs) visited by overseas leisure travelers to California in 2014 were Los Angeles Long Beach (67%) and San Francisco (47%), followed by San Diego (15%), Anaheim (10%), Salinas (6%), Riverside-San Bernardino (5%), and Santa Barbara (5%). MAIN DESTINATION* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 5,193,000 579,000 348,000 359,000 141,000 528,000 606,000 119,000 281,000 240,000 148,000 419,000 (Number of Respondents) (4,932) (569) (411) (293) (158) (519) (306) (105) (560) (100) (174) (254) Los Angeles-Long Beach MSA 3,495,000 323,000 223,000 250,000 110,000 389,000 466,000 72,000 153,000 172,000 109,000 284,000 (Los Angeles County) 67.3% 55.8% 64.0% 69.7% 78.0% 73.6% 76.9% 60.1% 54.5% 71.7% 73.7% 67.7% SOUTH KOREA BRAZIL MEXICO (AIR) San Francisco MSA 2,420,000 267,000 217,000 211,000 76,000 221,000 282,000 50,000 65,000 118,000 62,000 86,000 (San Francisco-Marin-San Mateo Counties) 46.6% 46.1% 62.4% 58.8% 54.2% 41.9% 46.6% 42.1% 23.2% 49.2% 42.0% 20.6% San Diego MSA 774,000 94,000 62,000 23,000 13,000 79,000 66,000 18,000 47,000 36,000 33,000 38,000 (San Diego County) 14.9% 16.2% 17.8% 6.5% 9.4% 15.0% 10.9% 15.1% 16.8% 14.8% 22.1% 9.1% Anaheim-Santa Ana MSA 493,000 59,000 13,000 6,000 4,000 122,000 15,000 4,000 55,000 18,000 14,000 94,000 (Orange County) 9.5% 10.2% 3.7% 1.7% 3.0% 23.1% 2.4% 3.1% 19.7% 7.3% 9.4% 22.4% Salinas MSA 296,000 68,000 24,000 20,000 15,000 12,000 15,000 1,000 6,000 3,000 21,000 2,000 (Monterey County) 5.7% 11.7% 6.9% 5.6% 10.7% 2.2% 2.4% 1.2% 2.0% 1.1% 14.2% 0.4% Riverside-San Bernardino MSA 244,000 47,000 28,000 13,000 4,000 18,000 13,000 <1,000 6,000 10,000 3,000 9,000 (Riverside-San Bernardino Counties) 4.7% 8.1% 8.0% 3.7% 2.8% 3.4% 2.1% - 2.3% 4.1% 1.7% 2.2% 61

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Table 27 (Cont.) MAIN DESTINATION* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 5,193,000 579,000 348,000 359,000 141,000 528,000 606,000 119,000 281,000 240,000 148,000 419,000 (Number of Respondents) (4,932) (569) (411) (293) (158) (519) (306) (105) (560) (100) (174) (254) Santa Barbara-Lompoc MSA 244,000 45,000 27,000 22,000 8,000 12,000 19,000 2,000 5,000 <1,000 13,000 21,000 (Santa Barbara County) 4.7% 7.8% 7.8% 6.2% 5.5% 2.2% 3.1% 1.7% 1.9% - 8.7% 4.9% SOUTH KOREA BRAZIL MEXICO (AIR) Sacramento MSA 151,000 27,000 18,000 7,000 4,000 14,000 4,000 1,000 6,000 9,000 4,000 1,000 (El Dorado-Placer- Sacramento-Yolo Counties) 2.9% 4.7% 5.2% 1.9% 3.1% 2.7% 0.6% 0.7% 2.1% 3.9% 2.9% 0.2% San Jose MSA 145,000 20,000 7,000 13,000 1,000 3,000 21,000 18,000 12,000 6,000 5,000 18,000 (Santa Clara County) 2.8% 3.5% 2.1% 3.7% 0.6% 0.6% 3.4% 14.9% 4.3% 2.3% 3.3% 4.2% *Visitors may report multiple destinations -- percentages are read down the column. Counties with less than a two percent share of the California leisure market were not listed. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 63

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Table 28 TRAVEL COMPANIONS OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2014) The highest proportion of Overseas and Mexican leisure visitors to California were traveling alone (45%), followed by 33% traveling with a spouse/partner and 21% traveling with family/relatives. Visitors from India and Mexico (air) (55% and 54% respectively) had the highest proportion of respondents who were traveling alone, while visitors from Germany and Italy (47% each respectively) had the highest proportion of respondents who were traveling with a spouse/partner. Visitors from China (37%) followed by Mexico (air) (31%) had the highest proportion of respondents who were traveling with family/relatives. TRAVEL COMPANIONS* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 5,193,000 579,000 348,000 359,000 141,000 528,000 606,000 119,000 281,000 240,000 148,000 419,000 (Number of Respondents) (4,899) (568) (407) (292) (158) (516) (301) (103) (558) (99)** (174) (250) Traveling Alone 44.6% 42.6% 32.1% 47.0% 29.9% 38.2% 37.9% 54.8% 47.8% 41.8% 47.1% 53.8% Spouse/Partner 33.2 41.5 47.6 29.8 46.9 40.1 27.4 34.0 26.0 26.0 30.8 14.1 Family/Relatives 21.2 16.6 17.8 19.7 20.4 23.7 36.5 16.2 22.0 26.8 21.4 30.7 Friends 7.7 6.3 9.0 5.7 7.0 8.0 8.0 0.9 10.6 12.8 8.7 5.5 Tour Group 0.5-1.1 2.4 0.2 0.1 1.1 0.1 0.9 0.9-0.5 Business Associates 0.2-0.2 0.3 - - 0.7-0.5-0.1 0.3 SOUTH KOREA BRAZIL MEXICO (AIR) *Column percentages may total more than 100% due to multiple responses. **Caution-Small sample size Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 65

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Table 29 MAIN PURPOSE OF TRIP OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2014) Overseas leisure visitors to California reported the main purpose of their trip as predominantly vacation/holidays (75%) and, to a lesser extent, visiting friends/relatives (25%). Leisure visitors from Italy (92%), followed by leisure visitors from Australia (88%) and Germany (86%) had the highest proportion of visitors whose main purpose was vacation/holidays, while leisure visitors from India (58%) followed by Japan (33%) had the highest proportion of visitors whose main purpose was visiting friends/relatives. MAIN PURPOSE OF TRIP COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 5,193,000 579,000 348,000 359,000 141,000 528,000 606,000 119,000 281,000 240,000 148,000 419,000 (Number of Respondents) (4,932) (569) (411) (293) (158) (519) (306) (105) (560) (100) (174) (254) Vacation/ Holidays 75.0% 76.4% 86.1% 77.6% 92.2% 88.1% 70.3% 42.0% 66.7% 73.0% 83.1% 70.7% Visit Friends/Relatives 25.0 23.6 13.9 22.4 7.8 11.9 29.7 58.0 33.3 27.0 16.9 29.3 SOUTH KOREA BRAZIL MEXICO (AIR) Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 67

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Table 30 PURPOSE OF TRIP OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2014) More than eight in ten (84%) overseas leisure travelers to California reported they were on vacation/holiday, while almost four in ten (39%) reported visiting friends or relatives. This is similar to results from previous years. Leisure travelers from Australia, Italy, and Germany (95%, 94%, and 92% respectively) recorded the highest proportion of travelers on vacation/holiday in 2014. On the other hand, only 57% of leisure visitors from India reported they were on vacation/holiday. A large proportion of visitors from India (66%) reported coming to California to visit friends and relatives, while only 13% of travelers from Italy reported this purpose. PURPOSE OF TRIP* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 5,193,000 579,000 348,000 359,000 141,000 528,000 606,000 119,000 281,000 240,000 148,000 419,000 (Number of Respondents) (4,932) (569) (411) (293) (158) (519) (306) (105) (560) (100) (174) (254) Vacation/ Holidays 84.0% 86.3% 91.9% 86.1% 93.8% 94.6% 76.8% 57.0% 76.7% 78.7% 85.6% 79.4% Visit Friends/Relatives 39.3 37.4 31.2 31.8 12.8 27.7 44.5 66.2 42.8 43.6 28.8 40.7 Education 2.0 1.6 3.1 1.4 3.2 0.2 5.3-1.8 0.3 1.7 0.2 Business 2.3 1.2 2.2 0.4 0.3 2.5 7.4 0.2 2.3-2.5 2.4 Attend Convention 1.4 0.6-0.4 0.5 2.1 3.1 0.2 0.2-1.0 - Other 1.5 0.4-1.2-1.1 4.4 2.1 1.2 0.4 2.0 1.3 SOUTH KOREA BRAZIL MEXICO (AIR) *Column percentages may total more than 100% due to multiple responses. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 69

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Table 31 LEISURE-RECREATION ACTIVITIES OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2014) Overseas leisure visitors reported a greater participation rate in almost all activities, compared with all overseas visitors to California (Table 8). Shopping (91%) and sightseeing (89%) were the most common leisure and recreation activities of overseas leisure visitors to California in 2014. These results are similar to those mentioned in 2013 and 2012. COUNTRY OF RESIDENCE OF VISITORS LEISURE/RECREATION ACTIVITIES* TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) ESTIMATED TRAVELERS 5,193,000 579,000 348,000 359,000 141,000 528,000 606,000 119,000 281,000 240,000 148,000 419,000 (Number of Respondents) (4,396) (527) (384) (255) (140) (492) (265) (68)** (489) (91)** (149) (201) Shopping 90.5% 91.7% 89.4% 88.8% 76.8% 97.0% 95.7% 78.3% 85.4% 71.2% 94.7% 80.4% Sightseeing 88.5 90.9 91.3 86.3 77.6 94.3 89.1 91.2 87.0 82.7 86.5 72.0 National Parks/Monuments 58.7 60.9 73.5 74.6 64.1 65.9 53.3 56.9 25.4 37.9 58.5 25.0 Small Towns/Countryside 48.6 54.9 65.1 51.9 43.7 47.6 53.6 44.2 18.9 15.6 39.1 25.5 Amusement/Theme Parks 45.7 33.7 37.0 45.7 29.0 61.6 56.2 52.1 31.7 41.9 52.7 49.9 Experience Fine Dining 43.3 40.0 36.1 46.3 20.5 48.9 56.8 25.8 34.9 26.5 31.0 29.9 Historical Locations 39.7 46.4 56.2 37.8 35.1 51.9 28.3 27.3 16.7 24.4 43.5 27.3 Guided Tour(s) 38.9 49.9 40.1 34.4 29.0 67.5 32.0 26.6 23.0 25.8 29.2 14.2 Art Galleries/Museums 32.9 32.5 26.0 27.2 20.4 46.8 46.6 32.4 16.2 29.5 33.6 13.7 Casino/Gamble 28.7 29.3 29.8 36.1 15.2 45.3 24.1 24.1 11.0 17.3 26.4 9.5 Cultural/Ethnic Heritage 21.5 22.2 28.8 19.6 27.8 31.6 25.3 6.6 6.8 15.4 13.5 15.0 Sights Concert/Play/Musical 22.8 19.8 17.3 17.9 10.9 45.0 15.1 15.8 11.2 19.6 38.2 4.3 Nightclubbing/Dancing 16.8 18.6 15.7 15.6 11.8 27.9 5.6 15.1 3.8 4.9 38.4 11.4 Sporting Event 15.5 14.7 12.4 5.8 8.4 35.0 7.7 10.9 10.2 15.4 13.5 28.4 American Indian 12.2 9.8 14.3 25.0 15.0 14.2 10.8 16.6 1.4 11.3 5.1 3.3 Communities Water Sports 9.8 8.1 11.1 8.8 6.1 17.2 12.2 7.5 7.1 2.9 6.3 3.4 Camping/Hiking 9.7 12.4 19.8 12.0 4.2 9.9 4.9 8.6 3.6 8.9 4.5 2.9 Environmental/Eco. 6.5 4.7 11.9 3.2 13.6 3.1 14.2 1.5 0.7 10.2 2.3 1.6 Excursions Golfing/Tennis 4.0 4.1 3.1 1.9 4.1 3.6 3.7 8.4 7.3 8.0-1.7 Snow Sports 2.5 2.7 0.8 0.3 0.6 7.2 0.4 3.4 0.4 0.5 4.0 - Hunting/Fishing 1.9 1.1 0.9 0.2 0.3 2.8 2.2 2.0 1.0 1.4 1.5 1.9 *Multiple response. Only responses greater than one percent are detailed. **Caution Small sample size. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 71

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Table 32 ADVANCE TRIP DECISION OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2014) Overseas leisure visitors to California reported a median advance trip decision period of 90 days, 10 days longer than the 80 days for all overseas visitors to California (Table 9). The median advance airline ticket reservation period for leisure visitors was 60 days in 2014, (the same as in previous years) compared with a median of 50 days for all overseas visitors to California (Table 10). In 2014 leisure visitors from Mexico (air) (45 days), followed by South Korea (50 days), China, India and Japan (60 days each respectively) had the shortest advance trip decision period, as well as the shortest advance airline ticket reservation time (30, 30, 30, 40, and 60 days respectively). Once again, leisure visitors from Australia reported the longest advance trip decision period (180 days), as well as the longest advance airline ticket reservation time (120 days), compared to visitors from other countries. COUNTRY OF RESIDENCE OF VISITORS ADVANCE TRIP DECISION* TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) ESTIMATED TRAVELERS 5,193,000 579,000 348,000 359,000 141,000 528,000 606,000 119,000 281,000 240,000 148,000 419,000 (Number of Respondents) (4,737) (546) (391) (289) (153) (498) (292) (100) (548) (97)** (172) (233) 14 Days or Less 5.6% 4.2% 1.8% 8.4% 4.1% 2.4% 4.6% 5.7% 6.9% 7.6% 4.4% 10.5% 15-60 Days 32.8 23.4 21.2 26.5 26.3 14.8 50.8 45.5 44.8 65.1 28.7 53.4 61-120 Days 26.9 20.6 27.9 22.8 30.9 24.5 31.0 40.6 29.8 16.0 43.5 18.4 121-180 Days 14.6 17.7 17.7 22.4 19.4 15.1 9.8 4.8 11.1 5.1 15.9 11.7 181 Days or More 20.1 34.2 31.4 19.9 19.2 43.2 3.7 3.4 7.3 6.2 7.6 6.0 TOTAL 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Average No. of Days 126.0 171.0 152.5 136.4 130.5 189.5 77.5 72.7 91.2 66.2 105.4 77.8 Median No. of Days 90.0 150.0 120.0 100.0 100.0 180.0 60.0 60.0 60.0 50.0 90.0 45.0 ADVANCE AIRLINE RESERVATIONS* ESTIMATED TRAVELERS 5,193,000 579,000 348,000 359,000 141,000 528,000 606,000 119,000 281,000 240,000 148,000 419,000 (Number of Respondents) (4,576) (524) (376) (278) (147) (489) (280) (96)** (504) (94)** (171) (227) 14 Days or less 9.9% 6.4% 4.8% 10.1% 3.4% 4.1% 10.6% 12.7% 12.2% 17.0% 5.5% 24.9% 15-60 Days 42.4 30.4 28.2 39.7 37.2 26.5 64.9 57.9 55.6 64.8 40.4 53.5 61-120 Days 24.1 20.1 29.3 22.6 27.9 23.8 20.4 27.1 22.9 12.0 41.2 11.5 121-180 Days 12.5 18.0 19.5 20.2 19.9 17.6 3.3 2.3 5.2 2.1 10.6 8.5 181 Days or More 11.2 25.1 18.1 7.4 11.6 28.0 0.8-4.2 4.3 2.3 1.5 TOTAL 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Mean No. of Days 90.5 133.5 117.8 91.3 105.4 136.0 51.2 51.3 66.9 46.6 81.0 49.0 Median No. of Days 60.0 100.0 100.0 70.0 90.0 120.0 30.0 40.0 60.0 30.0 85.0 30.0 *Column percentages may not total to 100% due to rounding. **Caution-Small sample size Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 73

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Table 33 MEANS OF BOOKING AIR TRIP AND LODGING OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2014) Booking directly with the airline has become the most common method used by overseas leisure visitors to book air trips in 2014 (32%). Use of this means was highest among leisure visitors from Mexico (air) (53%) followed by leisure visitors from the U.K. (42%), and lowest among leisure visitors from Italy (16%). Use of a travel agent for airline ticket reservations has consistently decreased over time. Travel agents booked 30% of airline ticket reservations for overseas leisure travelers to California in 2014, down from 33% in 2013, and 34% in 2012. The proportion of travel agent air bookings ranged from a low of 17% for leisure travelers from China, to a high of 58% for leisure travelers from Australia. An Internet booking service played an increasing role in airline ticket reservations (29% in 2014 vs. 27% in 2013) as well as lodging reservations (36% in 2014 vs. 35% in 2013) for all overseas travelers to California in 2013. COUNTRY OF RESIDENCE OF VISITORS MEANS OF BOOKING AIR TRIP* TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) ESTIMATED TRAVELERS 5,193,000 579,00 348,000 359,000 141,00 528,000 606,000 119,000 281,000 240,000 148,000 419,000 (Number of Respondents) (4,896) (565) (409) (291) (156) (514) (301) (103) (558) (100) (174) (251) Airline Directly 32.3% 42.1% 29.8% 36.2% 16.1% 27.1% 25.7% 28.5% 36.0% 25.8% 35.5% 52.5% Travel Agency Office 29.9 21.8 31.8 20.9 51.8 57.7 16.9 38.2 32.9 19.4 21.8 27.7 Internet Booking Srvc. 28.8 22.1 32.5 34.7 21.5 18.4 38.3 21.1 26.9 27.4 27.5 20.2 Tour Oper./Travel Club 10.7 15.9 5.6 10.2 14.4 5.2 14.6 16.0 4.1 28.3 19.8 4.2 Corporate Travel Dept. 4.0 1.6 5.5 2.2 1.1 1.3 8.8 4.7 1.8 1.2 4.5 4.0 Other/Don t Know 0.8 1.0 0.8 0.4 2.7 0.3 0.6 0.0 1.4 0.0 3.3 1.8 TOTAL 100.0% 100.0 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% MEANS OF BOOKING LODGING** (Number of Respondents) (4,719) (561) (390) (286) (153) (510) (279) (91)*** (540) (98)** (170) (234) Yes, Booked by: 69.9% 71.5% 74.3% 62.7% 79.2% 87.1% 77.3% 34.5% 74.8% 51.4% 74.7% 55.5% Internet Booking Srvc. 36.4% 32.9% 46.3% 37.8% 26.7% 39.9% 41.2% 10.1% 28.5% 27.8% 43.7% 22.3% Hotel/Motel Directly 17.9 21.5 19.7 13.0 11.9 28.2 13.4 15.7 17.1 8.2 18.4 17.0 Travel Agency Office 16.2 14.4 18.4 11.6 35.8 35.6 11.4 4.6 22.7 2.7 8.2 16.9 Tour Oper./Travel Club 6.7 12.2 4.6 5.2 10.7 5.8 8.8 6.4 4.3 12.9 9.0 2.5 Corporate Travel Dept. 2.0 2.7 3.0 1.4-1.2 2.5 0.2 1.7 1.1 2.9 1.1 Airline Staff 0.9 1.4 1.2 - - 1.1 1.6 0.5 1.6 0.3-1.5 Other 1.5 1.0 2.8 1.5 1.4 0.9 2.1 2.2 1.9-2.5 0.6 No 30.1% 28.5% 25.7% 37.3% 20.8% 12.9% 22.7% 65.5% 25.2% 48.6% 25.3% 44.5% *Column percentages may not total to 100% due to rounding. ** Multiple Response. Percentages based on total number of respondents. ***Caution-Small sample size Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 75

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Table 34 U.S. TRIP INFORMATION SOURCES OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2014) Referring directly to the airlines (44%) was a key source of trip information and travel planning among leisure visitors to California. This was followed by use of an online travel agency (35%), personal recommendation (33%) and travel agency office (26%). Use of a travel guide was the next most frequently mentioned trip information source among leisure travelers to California (17%). Results are similar to those from 2012 and 2013. Due to the categories changing in 2012, prior years results cannot be compared. Use of the airline directly was highest among leisure visitors from the U.K. (55%) followed by Mexico (air) (54%), and lowest among leisure visitors from South Korea (27% each). Use of an online travel agency was highest among leisure visitors from Brazil (50%) and Germany (48%), and lowest among visitors from India (19%). Similar to results from 2013, use of a personal recommendation was highest among leisure visitors from Brazil and India (49% and 45% respectively) and lowest among leisure visitors from Japan and France (25% and 24% respectively). INFORMATION SOURCES* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 5,193,000 579,000 348,000 359,000 141,000 528,000 606,000 119,000 281,000 240,000 148,000 419,000 (Number of Respondents) (4,859) (564) (410) (292) (153) (514) (297) (97)** (555) (98)** (173) (251) Airlines Directly 44.4% 54.9% 37.9% 40.9% 30.2% 38.8% 38.0% 44.6% 45.6% 27.0% 49.3% 54.1% Online Travel Agency 34.7 38.7 47.6 36.4 21.4 39.9 26.0 18.8 22.5 32.0 50.0 24.0 Personal Recommendation 33.2 26.6 34.7 24.0 27.0 33.3 40.5 45.4 24.7 34.0 49.2 28.9 Travel Agency Office 25.9 21.9 30.2 17.9 41.1 52.1 18.9 25.0 27.2 10.4 18.0 24.2 Travel Guide 17.3 16.5 34.1 17.5 15.0 17.0 19.1 10.1 20.8 3.1 20.2 6.1 Tour Operator/Travel Club 10.9 16.4 8.3 12.0 16.3 10.5 13.7 20.3 5.4 25.1 13.1 5.9 Government Travel Office 8.0 5.2 11.1 3.6 16.8 7.0 3.9 6.3 5.6 1.7 26.5 29.1 Corporate Travel Dept. 5.8 4.1 9.0 4.5 5.2 4.0 7.5 4.2 6.1 3.1 10.9 4.8 Other 5.2 5.5 6.7 3.7 4.5 4.8 3.2 4.9 5.9 6.8 6.2 1.9 SOUTH KOREA BRAZIL MEXICO (AIR) *Column percentages may not total to 100% due to multiple responses. **Caution-Small sample size Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 77

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Table 35 AIRLINE TICKET CLASS AND PREPAID TRIP PACKAGE OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2014) Most of the overseas leisure travelers to California (81%) purchased their airline ticket, particularly visitors from Australia, the U.K. and Germany (89%, 88% and 88% respectively). Leisure visitors from Mexico (air) (55%) had the lowest tendency toward purchasing an airline ticket. In 2013, 77% of leisure travelers purchased their airline ticket. Results cannot be compared with years prior to 2012 due to a change in categories. Similar to 2012 and 2013, approximately 17% of overseas leisure travelers to California used a prepaid inclusive tour package. Results cannot be compared with years prior to 2012 due to a change in wording of the question. TYPE OF AIRLINE TICKET COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 5,193,000 579,000 348,000 359,000 141,000 528,000 606,000 119,000 281,000 240,000 148,000 419,000 (Number of Respondents) (4,381) (525) (369) (248) (140) (470) (274) (83)** (503) (92)** (147) (213) Paid Ticket 81.0 87.6 87.8 82.7 86.1 89.4 78.1 81.0 72.4 68.8 66.4 54.6 Discount/Group Fare 4.0 2.0 1.7 2.7 0.4 2.4 9.4 3.3 8.4 15.3 3.7 5.1 Frequent Flyer Award 3.6 2.4 4.6 1.9 2.7 3.7 4.1 2.3 4.3 2.5 10.2 3.0 Paid Upgrade 1.8 3.4 2.3 0.4 1.2 1.1 1.1 0.8 3.4 1.3 1.9 0.3 Non-revenue 1.5 1.7 0.6 1.7-0.7 0.5 1.2 1.9 3.6 1.4 0.7 Frequent Flyer Upgrade 0.6 0.7 0.4-0.3 0.3 0.2 3.9 1.3 - - 1.2 Don't Know 9.4 5.2 5.3 11.2 10.3 3.7 7.8 7.4 13.5 9.3 18.5 37.3 SOUTH KOREA BRAZIL MEXICO (AIR) USE OF PREPAID PACKAGE (Number of Respondents) (3,691) (386) (300) (212) (102) (301) (237) (73)** (367) (196) (106) (71)** Yes, Airfare and Accom.* 16.7% 21.8% 12.1% 23.6% 22.8% 13.3% 30.0% 10.4% 27.9% 19.7% 8.7% 17.0% Airfare and Accom. Only 2.2% 3.4% 1.2% 1.6% 1.6% 1.9% 1.5% 2.0% 9.1% 1.0% 1.2% 2.6% Attractions/Events/Ent. 7.9 5.9 4.2 11.2 6.9 7.4 21.8 7.3 10.5 13.2 4.8 6.5 Meals 7.3 5.2 4.7 15.3 6.1 6.3 18.5 7.3 9.7 14.7 2.6 3.7 Bus/Coach 7.0 6.9 5.5 13.6 8.5 7.3 11.7 6.5 12.3 15.4 3.5 3.6 Guided Tours 6.7 4.8 1.9 12.0 9.6 6.0 17.4 4.9 10.4 11.8 0.6 2.8 Rental Car 5.5 9.1 5.5 6.6 14.1 1.4 11.6 4.1 0.7 1.1 4.5 7.6 Tour Guide for Entire Trip 5.0 2.6 4.2 14.5 5.4 1.6 15.3 3.9 6.7 7.0 0.6 1.9 Cruise 2.6 5.1 0.9 2.8 0.1 2.9 4.8 4.5 2.1 2.4 0.2 0.2 Recreation 1.7 0.5 1.6 3.1 0.5 1.8 4.7 1.5 2.3 0.6 0.6 1.5 Rail Tickets 1.1 0.3 1.2 1.2-0.9 2.4 1.6 4.0 - - - No 83.3% 78.2% 87.9% 76.4% 77.2% 86.7% 70.0% 89.6% 72.1% 80.3% 91.3% 83.0% TOTAL 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% * Multiple Response. Must include airfare and accommodation and may include others. **Caution - Small sample size. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 79

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Table 36 TRAVEL PARTY SIZE OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2014) Almost nine in ten (87%) of all leisure travel groups to California consisted of adults only, while 13% were adults traveling with children. The mean total party size for leisure travelers was 1.9 persons. These results are similar to those from the previous year. TRAVEL PARTY SIZE* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 5,193,000 579,000 348,000 359,000 141,000 528,000 606,000 119,000 281,000 240,000 148,000 419,000 (Number of Respondents) (4,925) (569) (411) (293) (158) (519) (306) (102) (558) (100) (174) (252) Adults Only 86.5% 89.3% 89.2% 87.3% 88.6% 82.6% 75.5% 91.8% 85.4% 83.9% 90.0% 75.9% Adults and Children 13.5 10.7 10.8 12.7 11.4 17.4 24.5 8.2 14.6 16.1 10.0 24.1 TOTAL 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% SOUTH KOREA BRAZIL MEXICO (AIR) Mean Total Party Size 1.9 1.8 1.9 1.8 2.0 2.0 2.3 1.7 1.9 2.0 1.9 2.0 Median Total Party Size 2.0 2.0 2.0 2.0 2.0 2.0 2.0 1.0 2.0 2.0 2.0 1.0 ADULTS ONLY (Number of Respondents) (4,079) (493) (357) (242) (140) (413) (212) (87)** (453) (82)** (151) (191) Mean Adult Party Size 1.6 1.6 1.8 1.5 1.8 1.6 1.8 1.5 1.6 1.6 1.8 1.4 Median Adult Party Size 1.0 2.0 2.0 1.0 2.0 2.0 2.0 1.0 1.0 2.0 1.0 1.0 ADULTS AND CHILDREN (Number of Respondents) (846) (76)** (54)** (51)** (18)** (106) (94)** (15)** (105) (18)** (23)** (61)** Mean Party Size 3.6 3.6 3.3 3.7 3.4 3.7 3.7 4.0 3.2 3.8 3.1 3.7 Median Party Size 3.0 4.0 3.0 4.0 4.0 4.0 3.0 3.0 3.0 4.0 3.0 4.0 *Column percentages may total more than 100% due to rounding. **Caution - Small sample size. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 81

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Table 37 GENDER AND AGE OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2014) Slightly more female (51%) than male (49%) overseas leisure visitors to California were surveyed. The median age for females in 2014 was 37 years (38 years in 2013), versus 38 years for males (41 years in 2013). GENDER AND AGE OF VISITOR* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 5,193,000 579,000 348,000 359,000 141,000 528,000 606,000 119,000 281,000 240,000 148,000 419,000 (Number of Respondents) (4,566) (538) (372) (273) (145) (489) (281) (92)** (527) (98)** (152) (231) MALE ADULTS 49.3% 44.4% 50.8% 50.5% 58.4% 44.9% 46.6% 78.1% 47.4% 45.2% 49.4% 45.3% 18-24 Years 5.8 5.7 10.0 5.5 8.2 7.2 5.3 3.2 3.6 5.7 1.1 6.4 25-34 Years 15.3 13.7 13.0 14.8 25.5 15.0 11.5 19.5 8.2 6.4 17.9 11.2 35-54 Years 16.7 12.2 18.1 14.2 16.3 15.2 22.8 20.8 19.8 22.8 20.0 16.9 55 + Years 11.4 12.9 9.8 15.8 8.5 7.5 7.0 34.5 15.8 10.4 10.3 10.9 Average Male Age 41.4 43.4 40.2 43.0 37.0 38.5 40.0 47.5 46.8 43.8 41.9 41.3 Median Male Age 38.0 42.0 40.0 40.0 33.0 35.0 38.0 50.0 47.0 42.0 41.0 43.0 SOUTH KOREA BRAZIL MEXICO (AIR) FEMALE ADULTS 50.7% 55.6% 49.2% 49.5% 41.6% 55.1% 53.4% 21.9% 52.6% 54.8% 50.6% 54.7% 18-24 Years 8.8 8.1 10.6 12.7 2.4 11.4 9.7 3.8 6.2 2.9 4.2 8.8 25-34 Years 14.8 14.5 15.1 13.8 16.3 13.0 13.3 1.6 8.9 26.7 24.6 18.7 35-54 Years 16.4 12.6 14.5 14.5 16.0 18.6 25.2 5.4 22.1 15.4 13.7 21.4 55 + Years 10.8 20.4 9.2 8.5 6.9 12.1 5.2 11.0 15.4 9.8 8.2 5.6 Average Female Age 40.1 44.5 39.1 37.9 39.7 40.3 38.2 49.1 44.6 38.8 37.4 37.2 Median Female Age 37.0 43.0 33.0 30.0 36.0 40.0 37.0 55.0 45.0 34.0 32.0 34.0 *Column percentages may not total to 100% due to rounding. **Caution Small sample size. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 83

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Table 38 ANNUAL HOUSEHOLD INCOME OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2014) Overseas leisure travelers to California in 2014 had a median household income of $67,934, up slightly from $66,700 in 2013, but still not at the 2012 level of $75,000. Results cannot be compared with years prior to 2012 as the data is captured differently in previous years. The median household income for all overseas travelers to California in 2014 (Table 17) was $68,877. Overseas leisure visitors from Australia ($108,422) and the U.K. ($83,414) reported the highest median household income. Leisure visitors from Mexico (air) ($12,963) and India ($25,624) reported the lowest median household income. ANNUAL HOUSEHOLD INCOME* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 5,193,000 579,000 348,000 359,000 141,000 528,000 606,000 119,000 281,000 240,000 148,000 419,000 (NUMBER OF RESPONDENTS) (2,984) (329) (195) (163) (70)** (350) (213) (49)** (372) (75)** (104) (126) Under $20,000 14.4% 6.6% 15.3% 15.9% 9.4% 4.9% 17.1% 42.8% 6.5% 14.0% 25.5% 56.0% $20,000 - $59,000 29.4 24.6 23.4 28.8 53.2 18.7 40.5 24.7 32.0 39.4 26.3 23.9 $60,000 - $99,999 21.9 27.3 24.2 35.7 23.0 23.9 13.8 7.2 28.8 19.7 13.0 3.8 $100,000 - $139,999 15.0 16.5 20.4 14.5 7.2 22.5 13.2 18.2 10.9 13.5 11.6 3.8 $140,000 - $179,999 7.6 13.0 6.9 2.6 1.0 12.0 6.6 4.5 8.6 0.0 7.6 2.4 $180,000 and over 11.8 12.1 9.8 2.6 6.1 18.2 8.7 2.6 13.3 13.6 16.1 10.2 TOTAL 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% SOUTH KOREA BRAZIL MEXICO (AIR) Average Annual Income $92,500 $105,000 $91,100 $70,100 $61,700 $115,000 $79,900 $53,500 $102,300 $96,900 $92,800 $55,800 Median Annual Income $67,900 $83,400 $70,400 $64,800 $45,700 $108,400 $49,100 $25,600 $78,100 $56,400 $55,100 $13,000 *Column percentages may not total to 100% due to rounding. **Caution - Small sample size. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 85

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Table 39 NIGHTS AWAY FROM HOME / FIRST AIR TRIP TO U.S. OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2014) Overseas leisure visitors to California in 2014 had an average U.S. trip stay of 21 nights and an average stay in California of 8 nights. Leisure travelers from India reported the longest stays in the U.S. (51 nights), while those from China and Australia reported the longest stays in California (14 nights and 12 nights respectively). (Caution small sample size for India). Japanese (9 nights) followed by Mexico (air) leisure travelers (12 nights) reported the shortest trip stays in the U.S., while Japanese, and Mexico (air) leisure visitors reported the shortest stays in California (9 nights and 14 nights respectively). In 2014, 28% of overseas leisure visitors to California were on their first trip by air to the U.S. (31% in 2013). Leisure visitors from China (49%) had the highest proportion traveling on their first trip by air to the U.S. NIGHTS IN U.S. COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 5,193,000 579,000 348,000 359,000 141,000 528,000 606,000 119,000 281,000 240,000 148,000 419,000 (Number of Respondents) (4,879) (564) (405) (288) (156) (518) (303) (100) (560) (98)** (173) (243) Mean No. Nights 20.7 17.0 23.8 17.8 15.7 22.1 26.1 50.5 9.1 17.8 16.0 14.3 Median No. Nights 15.0 14.0 18.0 14.0 14.0 19.0 15.0 32.0 6.0 9.0 14.0 8.0 SOUTH KOREA BRAZIL MEXICO (AIR) NIGHTS IN CALIFORNIA (Number of Respondents) (4,199) (512) (345) (248) (131) (483) (238) (66)* (506) (72)* (154) (172) Mean Nights in Dest. 11.4 10.6 12.2 10.6 9.4 8.8 14.9 18.5 6.9 13.2 10.3 7.8 Median Nights in Dest. 8.0 9.0 8.0 8.0 7.0 7.0 7.0 7.0 5.0 6.0 9.0 6.0 FIRST AIR TRIP TO U.S. (Number of Respondents) (4,342) (523) (359) (252) (141) (481) (272) (83)* (487) (86)** (138) (202) Yes 28.1% 12.5% 28.5% 33.6% 36.5% 37.9% 49.0% 38.9% 15.0% 34.2% 17.0% 17.4% No 71.9 87.5 71.5 66.4 63.5 62.1 51.0 61.1 85.0 65.8 83.0 82.6 *Caution Small sample size. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 87

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Table 40 PORT OF ENTRY OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2014) Similar to results from previous years, Los Angeles was the major port of entry for all leisure travelers to California (49%) followed by San Francisco (21%). PORT OF ENTRY* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 5,193,000 579,000 348,000 359,000 141,000 528,000 606,000 119,000 281,000 240,000 148,000 419,000 (Number of Respondents) (4,932) (569) (411) (293) (158) (519) (306) (105) (560) (100) (174) (254) Atlanta, GA 1.3% 0.6% 2.4% 0.6% 1.0% 0.1% - - 0.5% 2.1% 10.6% 0.5% Boston, MA 0.5 1.6 0.8 0.6 - - 1.0% - - - - - Chicago, IL 2.8 2.7 7.6 4.5 3.5-2.3 2.3% 0.7-1.8 0.7 Dallas/Ft. Worth, TX 1.0 0.7 1.8 1.2-1.3 - - 0.9 2.4 4.9 3.4 Detroit, MI 0.6 0.4 1.2 0.8 0.6 0.1 - - 1.0 0.8 3.1 - Honolulu, HI 2.1 0.2 0.8 - - 5.3 7.5-8.0 2.2 - - Houston, TX 1.0 0.2 0.5 0.4 0.4 0.3 0.9 1.8 - - 6.4 1.0 Las Vegas, NV 2.1 8.1 5.1 1.4 2.1 0.2 1.4 - - - 5.7 2.5 Los Angeles, CA 48.8 41.7 28.8 50.2 35.0 79.1 41.7 25.3 52.2 55.3 42.2 59.2 Miami, FL 1.8 0.9 0.6 0.3 2.1 0.3-1.1 - - 14.5 0.4 Minn./St. Paul, MN 0.3-0.6 1.8 - - - 0.6 0.2 - - - New York, NY 5.8 3.6 4.2 3.5 24.8 3.1 4.7 8.2 0.6 3.3 3.3 2.5 Newark, NJ 1.3 1.6 3.7 1.1 2.0 0.6 1.0 8.8 - - - - Philadelphia, PA 1.1 2.6 3.1 2.7 0.9 - - - - - - - San Francisco, CA 20.8 24.9 30.2 24.2 20.8 7.0 25.4 41.9 23.4 21.7 2.8 12.6 Seattle, WA 1.4 1.9 1.8 0.8 3.2 0.1 2.6 4.8 2.7 - - - Washington, DC 1.2 0.7 1.5-1.7-2.5 - - - 0.5 - Other Port 5.9 7.3 5.3 6.0 1.8 2.5 8.9 5.2 9.8 12.1 4.2 17.2 TOTAL 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% SOUTH KOREA BRAZIL MEXICO (AIR) *Column percentages may not total to 100% due to rounding. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 89

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Table 41 OVERNIGHT ACCOMMODATIONS OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2014) Nearly three-quarters (73%) of overseas leisure travelers to California reported staying in hotels or motels at some time during their trip, and 35% reported staying in private homes. Hotel usage was highest among visitors from Brazil (84%), Italy (83%), and Australia (82%). Similar to previous years, hotel usage was lowest among visitors from India (53%), followed by Mexico (air) (56%). A high proportion of Indian (56%) and South Korean (52%) leisure travelers stayed in private homes. TYPE OF ACCOMMODATIONS * COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 5,193,000 579,000 348,000 359,000 141,000 528,000 606,000 119,000 281,000 240,000 148,000 419,000 (Number of Respondents) (3,883) (487) (336) (225) (121) (447) (177) (58)** (453) (69)** (146) (181) SOUTH KOREA BRAZIL MEXICO (AIR) Hotel / Motel 72.5% 76.6% 78.9% 74.7% 83.2% 82.1% 61.2% 52.8% 73.8% 63.8% 83.8% 55.5% Mean Nights in Dest. 7.3 7.9 7.6 7.4 7.0 7.5 9.3 4.6 4.6 3.9 8.1 5.3 Median Nights in Dest. 6.0 7.0 7.0 6.0 6.0 7.0 6.0 3.0 4.0 3.0 7.0 5.0 Private Home 34.5% 32.6% 31.6% 30.6% 21.2% 18.6% 43.2% 56.1% 32.8% 52.1% 20.0% 48.6% Mean Nights in Dest. 17.0 12.7 18.7 14.8 16.2 9.2 28.0 30.5 10.5 20.2 14.4 9.0 Median Nights in Dest. 9.0 9.0 8.0 8.0 8.0 7.0 13.0 12.0 7.0 9.0 10.0 6.0 Other 6.8% 4.7% 5.8% 6.5% 8.2% 8.0% 6.6% 2.6% 3.6% 7.0% 4.0% 1.9% *Column percentages may not total to 100% due to multiple responses. **Caution - Small sample size. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 91

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Table 42 TRANSPORTATION IN THE U.S OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2014) Leisure travelers relied upon a variety of transportation means within the U.S. including rental cars (48%), domestic flights (45%), private or company autos (38%), subways/trams/buses (32%), and taxis/limousines (28%). Rental car use was highest among German, Brazilian and Italian leisure visitors (65, 64, and 63% respectively). Leisure visitors from Australia and India had the highest use of domestic airline travel (73% and 71% respectively), whereas leisure visitors from Mexico (air) and China relied heavily on a company or private auto (49% and 47% respectively). Leisure visitors from Australia had the highest use of City subways/trams/buses (49%), as well as taxi/cab/limousines (55%). TRANSPORTATION IN U.S.* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 5,193,000 579,000 348,000 359,000 141,000 528,000 606,000 119,000 281,000 240,000 148,000 419,000 (Number of Respondents) (4,375) (513) (381) (253) (145) (483) (273) (68)** (496) (93)** (146) (191) Rented Auto 47.7% 49.8% 65.0% 55.4% 63.3% 41.0% 40.2% 10.1% 25.5% 36.3% 63.9% 37.8% Airlines in U.S. 45.0 35.0 41.0 30.2 45.1 72.9 46.3 70.5 32.0 36.4 55.1 21.4 Company or Private Auto 38.2 32.5 24.0 29.0 31.0 41.0 47.1 28.3 33.8 31.7 29.3 49.2 City Subway/Tram/Bus 31.7 32.4 41.6 36.4 24.5 48.9 24.0 30.9 29.3 29.6 12.3 15.1 Taxicab/Limousine 27.5 33.4 21.7 21.2 21.5 54.7 16.8 24.0 31.4 24.7 12.2 19.8 Bus between Cities 19.0 17.2 16.8 23.5 18.7 26.1 11.3 29.9 22.6 40.9 15.1 19.1 Ferry/River Taxi/Srt. Cruise 11.8 15.8 13.6 9.5 11.2 23.1 8.3 6.5 7.2 8.9 7.4 3.1 Railroad between Cities 6.4 5.2 7.5 4.3 2.7 11.1 7.1 4.3 10.3 2.3-5.5 Rented Bicycle /Motorcycle/Moped 5.0 6.1 5.1 7.8 9.4 7.3 4.6-5.1 0.1 2.9 0.7 Cruise Ship/River Boat 4.9 9.6 5.5 4.5 6.2 9.0 2.9 4.1 0.6 2.1 4.4 1.5 Motor Home/Camper 2.1 2.1 4.5-0.9 2.8 0.5 14.1 0.5 1.2 - - SOUTH KOREA BRAZIL MEXICO (AIR) *Column percentages may not total to 100% due to multiple responses. **Caution Small sample size. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 93

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Table 43 PAYMENT METHODS FOR TRIP EXPENSES OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2014) Leisure travelers to California predominantly make use of a credit card (40%), cash from home/travelers checks (30%), as well as a cash advance/withdrawal using a credit card (17%) as a method of payment for their trip expenses. Leisure visitors from Germany, China and Italy (54%, 53%, and 51% respectively) had the highest use of credit cards for purchases, while leisure visitors from Brazil and India had the highest use of cash/travelers checks (52% each respectively). Germany and France had the highest use of cash advance/withdrawal using credit card (25% and 24% respectively). TRIP EXPENSES PAYMENT METHOD* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 5,193,000 579,000 348,000 359,000 141,000 528,000 606,000 119,000 281,000 240,000 148,000 419,000 (Number of Respondents) (3,520) (392) (280) (209) (108) (398) (207) (38)** (470) (83)** (114) (148) Purchases Using Credit Card 40.3% 31.9% 54.3% 34.2% 51.0% 31.6% 53.0% 27.8% 48.9% 31.3% 33.9% 24.0% Cash from Home/Travelers Checks 29.5 34.9 14.7 33.9 25.5 19.2 23.9 51.8 40.1 43.7 52.4 45.0 Cash Adv./Withdrawal Using Credit Card 17.0 15.4 24.7 23.8 16.0 15.9 15.6 15.9 8.6 18.0 9.0 19.7 Cash Adv./Withdrawal Using Debit Card 6.8 10.0 4.3 3.9 3.1 16.8 3.0 3.3 0.8 4.7 1.7 6.8 Purchases Using Debit Card 6.3 7.9 2.0 4.3 4.4 16.5 4.5 1.2 1.6 2.3 3.1 4.5 SOUTH KOREA BRAZIL MEXICO (AIR) *Column percentages may not total to 100% due to rounding. **Caution Small sample size. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc., and Visit California. 95

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Table 44 TRIP EXPENDITURES OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2014) Overseas leisure travelers to California in 2014 reported total expenditures in California of $9.9 billion. The 2014 mean daily expenditure in California per leisure visitor, was $168, with total spending in California of $1,913 per visitor. As a comparison, all overseas travelers to California reported spending $1,872 per visitor in CA (Table 23). COUNTRY OF RESIDENCE OF VISITORS LEISURE VISITOR SPENDING* TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN TOTAL LEIS. VISIT. TO U.S. 26,122,000 3,353,000 1,488,000 1,262,000 721,000 1,132,000 1,217,000 409,000 2,813,000 1,065,000 1,831,000 1,717,000 Total Spending in the U.S. ($ Mil.) $82,765 $7,908 $3,795 $3,487 $1,891 $4,174 $4,257 $1,457 $8,640 $3,310 $5,986 $2,278 Spending in the U.S. per Leis. Visitor. $3,168 $2,359 $2,550 $2,763 $2,622 $3,688 $3,498 $3,561 $3,071 $3,108 $3,269 $1,327 CALIFORNIA LESIURE VISITORS SPENDING AND NIGHTS EST. LEISURE VISIT. TO CA 5,193,000 579,000 348,000 359,000 141,000 528,000 606,000 119,000 281,000 240,000 148,000 419,000 (Number of Respondents) (1,993) (241) (159) (127) (49)** (251) (66)** (25)** (240) (39)** (66)** (86)** Total Spending in CA ($ Mil.) $9,933 $799 $582 $544 $258 $885 $1,296 $212 $602 $483 $492 $373 Spend. in CA per Leis. Visitor $1,913 $1,380 $1,673 $1,516 $1,827 $1,676 $2,138 $1,785 $2,141 $2,011 $3,324 $890 Spending in CA per Day $168 $130 $137 $143 $194 $190 $143 $96 $310 $152 $323 $114 Average Nights in CA 11.4 10.6 12.2 10.6 9.4 8.8 14.9 18.5 6.9 13.2 10.3 7.8 Median Nights in CA 8.0 9.0 8.0 8.0 7.0 7.0 7.0 7.0 5.0 6.0 9.0 6.0 SPENDING IN THE U.S. BY LEISURE VISITORS TO CA* Total Spending in U.S ($ Mil.) $18,036 $1,281 $1,136 $914 $430 $2,222 $2,270 $580 $793 $651 $764 $684 Spending in U.S. per CA Leis. Visitor $3,473 $2,213 $3,264 $2,547 $3,051 $4,208 $3,745 $4,872 $2,824 $2,712 $5,163 $1,632 Nts in U.S. per CA Leis. Visitor 20.7 17.0 23.8 17.8 15.7 22.1 26.1 50.5 9.1 17.8 16.0 14.3 SPENDING IN THE U.S. BY CATEGORY (%) Lodging in U.S. 25.9% 24.6% 38.5% 27.5% 18.9% 26.4% 21.9% 22.9% 46.9% 15.5% 19.4% 10.7% Air Transport in U.S. 6.5% 1.9% 4.5% 5.1% 3.2% 8.4% 9.3% 8.2% 2.4% 5.5% 6.1% 6.5% Entertainment 14.6% 19.8% 11.1% 14.5% 14.8% 16.5% 9.0% 13.2% 9.8% 12.0% 15.8% 19.8% Food and Beverages 19.8% 28.7% 24.1% 24.0% 32.7% 18.3% 13.4% 17.0% 14.1% 19.1% 14.2% 17.1% Ground Trans. in U.S. 5.9% 5.5% 4.9% 6.7% 8.9% 4.6% 11.3% 6.1% 3.6% 10.1% 7.3% 6.2% Gifts and Souvenirs 22.4% 14.9% 12.6% 18.0% 19.0% 20.1% 26.7% 17.4% 19.1% 32.8% 35.7% 35.6% Other 4.9% 4.5% 4.2% 4.2% 2.6% 5.7% 8.4% 15.3% 4.0% 5.2% 1.6% 4.4% * Spending estimates were based on SIAT survey data and revised by Tourism Economics for Visit California, August 2014. **Caution - Small sample size. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc. and Tourism Economics SOUTH KOREA BRAZIL MEXICO (AIR) 97

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Table 45 EXPENDITURES OVERSEAS LEISURE VISITORS WHO REPORTED ONLY CALIFORNIA DESTINATIONS* (2014) Almost four in ten (38%) overseas leisure visitors to California in 2014 did not visit any other state in the U.S. while on their international trip. Leisure visitors who only visited California during their U.S. trip reported spending $2,137 per capita in California. This was higher than the average spending in California of $1,913 reported for All Overseas leisure visitors to California. As should be expected the California-only leisure visitors reported longer lengths of stay in California (15.2 days v. 11.4 days). Average daily spending by California only leisure visitors was $141 per day, which was lower than the average daily spending of $168 per day reported for all overseas leisure visitors to California. AVERAGE PER VISITOR TRIP EXPENDITURES OVERSEAS LEISURE TRAVELERS WHO ONLY VISITED CALIFORNIA ON THEIR U.S. TRIP ALL OVERSEAS LEISURE VISITORS TO CALIFORNIA EXPENDITURE IN CALIFORNIA $2,137 $1,913 PER DAY $141 $168 (NUMBER OF RESPONDENTS) (752) (1,993) AVERAGE ITEMIZED EXPENDITURES IN CA AIR TRANSPORT IN U.S. 3% 26% GROUND TRANSPORT IN U.S. 6% 6% LODGING 25% 15% FOOD, BEVERAGES 19% 20% GIFTS, SOUVENIRS 27% 6% ENTERTAINMENT 13% 22% OTHER 7% 5% AVERAGE NIGHTS IN CALIFORNIA 15.2 11.4 *Overseas visitors could report up to eight U.S. destinations. ** Spending estimates were based on SIAT survey data and revised by Tourism Economics for Visit California, August 2014. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2014. CIC Research, Inc. and Tourism Economics. 99

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APPENDIX A SURVEY BACKGROUND Introduction This report on overseas visitors to California is based on data compiled from the National Travel and Tourism Office (NTTO), Survey of International Air Travelers. The survey information is collected from passengers through questionnaires covering the traveler, the air trip, activities and places visited, and air travel expenditures. The survey is conducted voluntarily by selected major airlines on a sample of their international flights departing from U.S. airports. This survey program was initiated in response to a growing need for information on the volume, characteristics, and travel patterns of international air travelers to and from the United States. The data from the survey are used to guide planning oriented toward the activities of international air travelers for both the public and private sectors. Survey Operations Data are collected monthly through in-flight passenger surveys conducted on a sample of the participating airlines' scheduled international flights that depart from United States airports during the seven days beginning with the third Monday of the month. Participating airlines receive advance listings of the flights to be surveyed, followed by a survey kit for each sample flight. The kits each contain instructions and questionnaires in the appropriate language. (The questionnaire is available in English, French, German, Italian, Japanese, Spanish, Korean and Chinese). Airline cabin personnel distribute the self-administered questionnaires to all adult passengers and collect the completed forms prior to debarkation. Questionnaire Content The survey questionnaire is designed to obtain responses from U.S. as well as non-u.s. residents. The questionnaire contains questions about the travelers (e.g., age, sex, family income, country and city of residence, previous travel experience, etc.). It also contains many basic questions about the current trip (e.g., type of air ticket, travel party composition, nights away from home, trip purpose, etc.). The distinguishing features of this questionnaire are the complete trip itinerary and the trip expenditure data items. These items collect more complete data on these areas than are available elsewhere. Every major destination visited is covered, as is the length of stay and the type of accommodations utilized. Travel expenditures are also covered by type of expenditure. The entire questionnaire is reproduced in Appendix B. Sample Design The sample is designed around the geographic detail desired for the resulting estimates and the specific airlines willing to participate in the survey. The design is a stratified, two-stage cluster sample, where scheduled flights are randomly selected from strata defined by airline and foreign destination in the first stage of the sample. When the survey is conducted on a selected flight, those passengers who respond are considered to represent all passengers on that flight. Understanding the Estimates Since airline participation is voluntary and changes from quarter to quarter, country level data should be viewed cautiously. For example, if a major carrier for a particular country was unable to participate for a quarter, the data for that country may not fully represent the country's international travel. 101

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With the exception of the number of respondents, all the data in the tables are statistical estimates, based on responses to the survey and supplemented with data from the Immigration and Naturalization Service. Passengers on charter flights and persons traveling by air between the U.S. and Canada are excluded. The estimates are subject to a certain amount of error resulting from the sampling, data collection, and estimation processes. Because of the complicated nature of the sample design and the resulting computational burden, sampling variability has not been calculated for the estimates. Instead, an indication of the reliability of a set of related estimates is given by the number of respondents to the relevant questionnaire items. The reader must exercise judgment in determining the amount of confidence to place in an estimate and in its proper use. For example, an estimate based on 500 respondents is more reliable than one based on 200 respondents. Several kinds of estimates appear in the tables. The majority are in the form of percent distributions of the responses to questionnaire items. Distributions for items allowing only one choice of response will total to 100%. Those allowing more than one choice may total to more than 100%. Where the symbol -- appears, this means that no or limited data is available for that response. In addition to estimates of percents, estimates of means and medians are shown for travel party size, age, annual family income, number of nights stayed and by type of accommodations. Definitions Notes of explanation for selected variables appearing in the row headings of the tables are given below. Residence of Visitors: In the overseas tables the major trafficgenerating countries are listed by world regions, as described in Appendix C. Countries not listed are combined by region into the "Other Region X" categories. Type and Size of Travel Party: A travel party can fall into only one of these categories: traveling alone; family group; business group; and mixed business, family, and other. These four categories total 100%. A party is classified as mixed if the party is a combination of two or more of the other categories. Mean and median party size are computed from the distribution of frequencies of parties of different sizes (for example, three passengers traveling together are counted as a single party in the frequency distribution from which mean and median party size are computed). Air Expenditures: The amounts shown for mean international airfare and mean expenditures while in the United States on this trip are those amounts spent over and above any inclusive tour expenditures paid prior to beginning the trip. The categories are mutually exclusive. Mean: The mean is the sum of all responses divided by the number of responses. Median: The median is that value for which 50% of the values lie below it and 50% are above it. Leisure Visitors: Are defined as those visitors whose main purpose of trip is vacation/holidays or visiting friends/relatives. 103

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APPENDIX B QUESTIONNAIRE 105

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