Overseas and Mexican Visitors To California

Overseas and Mexican Visitors To California 2013 A joint marketing venture of Visit California and the California Business, Transportation and Housing Agency, Division of Tourism October 2014

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 (2013) Total Overseas Market. There were approximately 32.0 million overseas visitors to the U.S. in 2013, up 7.7% from 29.8 million in 2012. Approximately 6.6 million overseas visitors (20.6%) indicated California was a destination on their U.S. trip, up 6.6% from 6.2 million overseas visitors to California in 2012. Mexican (Air). There were approximately 2,218,000 Mexican travelers who arrived in the U.S. by air in 2013 (a 4.7% increase from 2012). Approximately 515,000 (23.2%) of these Mexican travelers visited California during their U.S. Trip (a 2.2% decrease from 2012). 1 Country of Origin. California's top ten overseas visitor market countries were: Overseas Visitors to California Rank Country 2012 2013 Percentage Change 1) China (excl. Hong Kong) 671,000 818,000 21.9% 2) United Kingdom 635,000 652,000 2.7% 3) Australia 522,000 553,000 5.9% 4) Japan 558,000 536,000-3.9% 5) Germany 399,000 421,000 5.5% 6) France 373,000 389,000 4.3% 7) South Korea 388,000 389,000 0.3% 8) India 190,000 240,000 26.3% 9) Brazil 183,000 206,000 12.6% 10) Taiwan 138,000 186,000 34.8% In 2013, 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 2013 (818,000) from 2012 (671,000). This resulted in the ranking of Chinese visitors to California remaining in first place. U.K. visitor volume to California increased by approximately 3%, thereby keeping their ranking in second place. The number of Australian visitors went up 6% from 522,000 to 553,000, resulting in the Australian ranking going from fourth to third place. Japanese visitors decreased by approximately 4% thereby going from third to 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 with the exception of Japan. 1 The majority of Mexican visitors to California in 2013 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 35.0 30.0 Millions 25.0 20.0 15.0 Overseas to U.S. 10.0 Overseas to CA 5.0-2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Market Share. Among the ten largest overseas visitor markets, California's share of visitors increased in 2013 from 2012 for visitors from the U.K., Germany, France, India and Taiwan. California Market Share of U.S. Visitors from Selected Overseas Countries Rank By Volume Country 2012 2013 1) China (excl. Hong Kong) 45.5% 45.3% 2) United Kingdom 16.9% 17.0% 3) Japan 15.1% 14.4% 4) Australia 46.5% 45.9% 5) Germany 21.3% 22.0% 6) South Korea 31.0% 28.6% 7) France 25.6% 25.9% 8) Brazil 10.2% 10.0% 9) India 26.2% 27.9% 10) Taiwan 47.6% 48.4% 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 and dropped again in 2013 to 20.6%. v

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Main Destination. More than three-quarters (77%) of 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 (58%) and San Francisco (47%), followed by San Diego (13%), Anaheim-Santa Ana, and San Jose (7% and 6% respectively). Main Purpose of Trip. The main purpose of trip among overseas travelers to California was vacation (52%), followed by visiting friends and relatives (17%), and business (15%). Purpose of Trip. Overseas travelers to California listed multiple reasons for their trip in addition to the main purpose. These included: vacation (64%), visiting friends/relatives (32%), and business (20%). Compared to other overseas travelers, visitors from Australia reported the highest proportion of travelers on vacation/holiday (89%), while visitors from Mexico (air) and India reported the highest proportion of those visiting friends and relatives (35%). Visitors from India and Japan (49% and 46%, respectively) reported the highest proportion of business travelers. Leisure/Recreation Activities. Shopping (88%), sightseeing (84%), and national parks/monuments (49%) were the most common leisure and recreation activities of overseas visitors to California in 2013. More than nine in ten visitors from Australia reported shopping (96%) or sightseeing (93%) as a recreation activity, while almost two-thirds of Australian visitors (66%) reported national parks/monuments. Use of Travel Agents. Travel agent usage in 2013 declined slightly compared with 2012 (31% versus 32% respectively.) Visitors from Australia (58%) and Japan (40%) report the highest dependence on travel agents to book their air trips, though use of the travel agents service declined among each of these groups. Overseas travelers who relied on travel agents to pre-book their lodging arrangements remained at 15% in 2013 as in 2012. An Internet booking service was reportedly used by 31% of travelers in 2013, while 19% reported contacting the hotels/motels directly, and 10% reported that their company s travel department booked their lodging. Accommodations. Similar to 2012, more than three-fourths of overseas travelers to California in 2013 reported staying in hotels or motels at some time during their trip (76%). Visitors from Mexico (air) and India reported the lowest hotel usage (59% and 66%, respectively), while visitors from Japan and Australia and France (88%, 86%, and 84% respectively) reported the highest hotel usage. Gender and Age. Similar to results from previous years, approximately 58% of overseas travelers to California during 2013 were adult males and 42% were adult females. During 2013, the average age of traveling adult males (42 years old) was three years older than the average traveling adult female (39 years old). vii

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Length of Stay. During 2013, California's overseas visitors spent an average of 23 nights in the U.S. and 12 nights in California, similar to the numbers in 2012. Once again, visitors from India reported the highest number of nights stayed in the U.S. (38 nights) as well as in California (21 nights). Visitors from Japan and Mexico (air) reported the least amount of time spent in the U.S. (10 nights and 15 nights respectively), while visitors from Mexico (air) reported the least amount of time in California (7 nights). First International Trip. More than one quarter of overseas visitors to California in 2013 were traveling on their first international U.S. trip (28%) as compared with 26% in 2012. Transportation Use. Approximately four in ten overseas visitors to California made use of airlines, a rental car, or a company or private auto (46%, 43%, and 37% respectively) as a means of transportation within the U.S. These were followed by use of the city subway/tram/bus (33%) and a taxi/cab/limousine (33%). Visitors from Australia were most likely to fly between U.S. Cities (80%), while visitors from Germany and Brazil were most likely to make use of a rental car (63% and 61% respectively). Visitors from Mexico (air) were most likely to make use of a company or private auto (51%), and visitors from Australia and India (58% and 50% respectively) were most likely to make use of a taxi/cab/limousine. Advance Trip Decision. In 2013 the average overseas visitor to California decided to travel a median of 65 days prior to the actual trip, longer than that reported in 2012 (60 days). Visitors from Australia reported the longest trip planning time (median = 150 days). Advance Ticket Reservation and Payment. Overseas visitors to California in 2013 reserved their airline ticket a median of 47 days prior to the actual trip, nearly the same timeframe as that reported in 2012. Visitors from India reported the shortest time frame from airline reservation to departure date (median = 20 days). On the other hand, visitors from Australia and Germany reported the longest time frame from airline reservation to departure (median = 100 days and 90 days respectively). Overseas visitors to California paid for their airline ticket a median of 42 days prior to the actual trip, 5 days after reserving the ticket. Visitors from South Korea and India paid for their ticket a median of 20 days prior to the actual trip (shortest timeframe), while visitors from France and Australia paid for their ticket a median of 90 days prior to their actual trip (longest timeframe). Travel Insurance. More than six in ten (63%) overseas visitors to California in 2013 purchased travel insurance, while 37% did not. Travel Companions. The highest proportion of overseas travelers to California (61%) were traveling alone, while 21% were traveling with their spouse, 13% with family/relatives, 6% with friends, and 4% with business associates. There was a slightly higher proportion of travelers to California traveling alone in 2013 (61%) compared with 2012 (59%). Travel Party Size. Consistent with results from previous years, the average travel party size for all overseas visitors to California during 2013 was 1.6 people. Visitors from China and France were the most likely to include children (16% and 14%, respectively). Prepaid Trip Package. Package tours were used by 15% of all 2013 visitors to California, as compared with 16% in 2012. During 2013, visitors to California who reported the highest use of inclusive tours were from France (24%). ix

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Total Spending in the U.S. by Overseas Visitors to California. In 2013 Overseas visitors to California reported total spending in the U.S. of $23.6 billion. Approximately $12.8 billion (54%) of their total spending in the U.S. was spent in California. Overseas visitors to California reported average spending in the U.S. of $3,577 per visitor. By country, the highest spending in the U.S. was reported by California visitors from South Korea ($4,997 per visitor) followed by visitors from France ($4,148), Australia ($4,129), and China ($4,127). Expenditures in California. 2 In 2013, the total number of overseas visitors to California was 6,609,000, compared with 6,197,000 in 2012. These visitors reported spending an average of $159 per day and they stayed an average of 12.2 nights in California. Estimated spending per visitor in California was about $1,940 in 2013, for an estimated total spending of $12.8 billion in the state. Expenditures in California - Mexican (air) visitors. 3 In 2013, the total number of Mexican (air) visitors to California was 515,000, up from 504,000 in 2012. These visitors reported spending an average of $134 per day and they stayed an average of 7.4 nights in California (3.2 nights shorter than in 2012). Each visitor from Mexico (air) generated average spending of $994 in California during 2013. The total estimated spending by all Mexican (air) visitors to California was $512 million in 2013. Credit Card Use. In 2013, 66% of overseas visitors to California made use of a credit card for purchases and 31% used their credit cards to withdraw cash. Almost two-thirds (65%) used cash from home or travelers checks, 14% withdrew cash using a debit card and 12% used their debit card for purchases. These percentages are from a multiple-response question which records all purchase methods used, unlike previous years where only the main purchase method used was reported. 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 (2013) ALL OVERSEAS VISITORS UNITED KINGDOM GERMANY FRANCE ITALY AUSTRALIA CHINA W/O HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) Estimated Travelers 6,609,000 652,000 421,000 389,000 157,000 553,000 818,000 240,000 536,000 389,000 206,000 515,000 Purpose: Business (% Change 2012/2013) 20% (1%) 20% (6%) 13% (-2%) 13% (-1%) 18% (10%) 6% (-3%) 19% (-9%) 49% (-1%) 46% (13%) 19% (1%) 7% (-4%) 19% (4%) Purpose: Vacation (% Change 2012/2013) 64% (1%) 68% (-5%) 72% (-2%) 79% (5%) 74% (-4%) 89% (3%) 57% (10%) 24% (2%) 35% (-9%) 56% (8%) 79% (15%) 62% (0%) Adv. Trip Decision (mean days) Adv. Air Decision (mean days) 104.7 125.9 140.1 143.5 121.1 174.4 60.6 52.0 60.1 64.6 116.9 66.3 72.2 96.7 104.0 92.9 84.1 115.3 38.7 37.8 42.2 39.9 76.8 42.3 Mean Travel Party Size 1.6 1.5 1.5 1.8 1.8 1.7 2.1 1.2 1.5 1.7 1.7 1.6 Median Male Age (years) 40.0 42.0 38.0 44.0 38.0 40.0 35.0 36.0 46.0 39.0 34.0 37.0 Median Female Age (years) 35.0 44.0 32.0 35.0 30.0 38.0 37.0 30.0 39.0 33.0 31.0 37.0 Mean Household Income ($000) $100,889 $131,449 $104,007 $75,323 $102,893 $125,395 $63,389 $53,546 $135,054 $78,226 $110,525 $65,230 Nights CA (mean) Nights CA (median) (Mean change 2011/2012) 12.2 7.0 (0.9 nts) 10.3 8.0 (-0.3 nts) 11.3 7.0 (-0.2 nts) 9.2 7.0 (-3.6 nts) 10.4 6.0 (-0.4 nts) 10.8 6.0 (2.9 nts) 14.4 6.0 (0.6 nts) 20.7 9.0 (0.1 nts) 8.5 4.0 (0.3 nts) 10.0 5.0 (-0.3 nts) 15.0 9.0 (3.3 nts) 7.4 6.0 (3.2) nts Hotel/Motel 76.4% 78.5% 70.5% 84.0% 77.0% 86.1% 68.6% 66.1% 87.9% 71.3% 80.9% 59.3% Private Home 27.0% 28.0% 30.8% 27.2% 23.0% 13.0% 24.2% 39.1% 14.6% 29.8% 25.1% 43.6% Rental Car 43.0% 45.0% 63.0% 52.6% 55.2% 38.6% 36.2% 21.8% 31.5% 36.1% 60.6% 34.6% Total Spending in CA ($Bil.) $12.8 Bil. $0.87 Bil. $0.70 Bil. $0.67 Bil. $0.31 Bil. $0.99 Bil. $1.95 Bil. $0.45 Bil. $1.05 Bil. $0.91 Bil. $0.44 Bil. $0.51 Bil. Spending /visitor in CA $1,940 $1,329 $1,670 $1,734 $1,987 $1,791 $2,377 $1,859 $1,964 $2,335 $2,106 $994 Mean Spending /day in CA $159 $129 $148 $189 $191 $166 $165 $90 $231 $234 $140 $134 *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, 2013 CIC Research, Inc., and Visit California. xiii

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OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA* SELECTED HIGHLIGHTS (2013) ALL OVERSEAS VISITORS UNITED KINGDOM GERMANY FRANCE ITALY AUSTRALIA CHINA W/O HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) Estimated Travelers 4,508,000 475,000 311,000 317,000 122,000 487,000 485,000 102,000 209,000 250,000 160,000 391,000 Purpose: Business 1.3% 0.4% 0.6% 0.0% 4.1% 1.0% 3.3% 0.0% 3.5% 0.3% 1.3% 3.6% Purpose: Vacation 85.2% 85.8% 87.8% 91.0% 93.2% 97.8% 81.3% 52.6% 79.3% 77.8% 89.4% 72.5% Adv. Trip Decision (mean days) Adv. Air Decision (mean days) 125.3 152.3 152.5 154.6 137.6 186.3 65.0 91.4 83.9 70.9 121.7 83.2 88.6 118.5 121.6 103.3 94.0 122.3 43.9 69.9 65.9 45.9 82.8 49.9 Mean Travel Party Size 1.8 1.7 1.8 2.1 1.9 1.9 2.3 1.6 1.7 1.8 2.1 1.9 Median Male Age (years) Median Female Age (years) 41.0 41.0 41.0 46.0 36.0 42.0 34.0 59.0 44.0 36.0 34.0 44.0 38.0 46.0 33.0 40.0 30.0 34.0 40.0 30.0 40.0 33.0 34.0 37.0 Mean Household Income ($000) $96 $122 $96 $73 $90 $125 $67 $52 $132 $74 $111 $86 Nights CA (mean) Nights CA (median) 10.6 7.0 10.4 8.0 9.7 8.0 9.3 7.0 11.6 7.0 9.3 6.0 9.5 6.0 19.5 10.0 7.3 5.0 9.8 5.0 9.3 8.0 8.2 6.0 Hotel/Motel 73.1% 76.7% 69.1% 81.8% 75.4% 86.6% 61.0% 40.8% 74.7% 65.4% 81.9% 49.8% Private Home 30.2% 30.2% 28.1% 29.6% 24.4% 12.2% 26.6% 69.0% 33.4% 36.9% 23.5% 55.2% Rental Car 46.5% 50.7% 68.3% 53.9% 59.5% 40.9% 41.7% 14.8% 27.9% 29.2% 69.5% 39.4% Total Spending in CA ($Bil.) $8.7 Bil. $0.63 Bil. $0.47 Bil. $0.56 Bil. $0.26 Bil. $0.80 Bil. $1.31 Bil. $0.10 Bil. $0.28 Bil. $0.89 Bil. $0.35 Bil. $0.39 Bil. Spending /visitor in CA $1,921 $1,327 $1,504 $1,777 $2,092 $1,639 $2,694 $980 $1,329 $3,543 $2,196 $1,005 Mean Spending /day in $181 $128 $155 $191 $180 $176 $284 $50 $182 $362 $236 $123 CA *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, 2013 CIC Research, Inc., and Visit California. xv

Figure 1 TOP TEN COUNTRIES OF RESIDENCE OVERSEAS VISITORS TO CALIFORNIA (2013) Visitors (000's) CHINA 818 UNITED KINGDOM AUSTRALIA JAPAN 553 536 652 GERMANY FRANCE SOUTH KOREA 389 389 421 INDIA BRAZIL TAIWAN 206 186 240 0 200 400 600 800 1000 Source: U.S. Department of Commerce, NTTO In-Flight Survey, 2013 CIC Research, Inc. xvi

Table 1 RESIDENCE OF VISITORS TO THE UNITED STATES AND CALIFORNIA (2013) UNITED STATES CALIFORNIA Number of 2012-2013 Estimated 2012-2013 CA Share of Visitors Percent Visitors to Percent Visitors from RESIDENCE OF VISITORS to the U.S. Change California Change* this Country EUROPE 12,895,335 3.3% 2,502,000 3.3% 19.4% W. EUROPE 12,034,880 2.4% 2,335,000 2.4% 19.4% Austria 186,010 1.5% 43,000 22.9% 23.0% Belgium 265,875 2.2% 44,000 29.4% 16.4% Denmark 269,496-0.7% 70,000 11.1% 26.1% France 1,504,654 3.4% 389,000 4.3% 25.9% Germany 1,916,471 2.2% 421,000 5.5% 22.0% Ireland 367,110 10.6% 88,000 12.8% 24.0% Italy 838,883 0.9% 157,000-4.3% 18.7% Netherlands 589,296-0.4% 113,000-7.4% 19.2% Norway 284,311 8.2% 53,000 12.8% 18.5% Spain 619,860 2.1% 92,000-8.9% 14.8% Sweden 476,571 7.8% 97,000 9.0% 20.3% Switzerland 473,064-0.7% 111,000 8.8% 23.5% United Kingdom 3,835,308 1.9% 652,000 2.7% 17.0% Other Western Europe 407,971 2.6% 5,000-86.8% 1.2% E. EUROPE 860,455 18.3% 179,000 33.6% 20.8% CARIBBEAN 1,155,618 2.1% 7,000-72.0% 0.6% Cayman Islands 39,083 -- 2,000 -- 5.3% Trinidad & Tobago 134,567-19.4% 3,000-62.5% 1.9% Other Caribbean 369,345 -- 2,000 -- 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 (2013) UNITED STATES CALIFORNIA Number of 2012-2013 Estimated 2012-2013 CA Share of Visitors Percent Visitors to Percent Visitors from RESIDENCE OF VISITORS to the U.S. Change California Change* this Country SOUTH AMERICA 5,141,987 16.4% 427,000 15.1% 8.3% Argentina 686,098 11.7% 47,000-9.6% 6.9% Brazil 2,060,291 15.0% 206,000 12.6% 10.0% Chile 212,199 13.1% 21,000-25.0% 10.1% Colombia 748,116 24.2% 59,000 156.5% 7.9% Ecuador 254,737 21.4% 8,000-46.7% 3.2% Peru 217,967 14.6% 13,000-35.0% 5.9% Venezuela 788,069 16.8% 75,000 70.5% 9.5% CENTRAL AMERICA (Excld. Mexico) 833,867 3.8% 88,000-6.4% 10.6% Costa Rica 182,063 1.3% 17,000 0.0% 9.6% Guatemala 202,179 4.0% 24,000-38.5% 11.9% Honduras 138,719 6.4% 1,000-50.0% 0.9% Panama 141,578 6.2% 12,000 0.0% 8.6% Other Central America 169,328 2.5% 34,000 41.7% 20.1% AFRICA 439,381 17.7% 38,000-2.6% 8.7% South Africa, Rep. of 105,009 10.4% 18,000-5.3% 17.4% Other Africa 334,372 20.1% 20,000 0.0% 6.0% OCEANIA 1,429,499 8.1% 700,000 10.8% 49.0% Australia 1,205,060 7.4% 553,000 5.9% 45.9% New Zealand 209,136 12.6% 119,000 16.7% 56.9% 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 (2013) UNITED STATES CALIFORNIA Number of 2012-2013 Estimated 2012-2013 CA Share of Visitors Percent Visitors to Percent Visitors from RESIDENCE OF VISITORS to the U.S. Change California Change* this Country ASIA 9,084,649 9.3% 2,389,000 10.1% 26.3% Hong Kong 122,134-8.2% 62,000-1.6% 50.8% India 859,156 18.6% 240,000 26.3% 27.9% Indonesia 88,652 20.5% 48,000 26.3% 53.9% Japan 3,730,287 0.9% 536,000-3.9% 14.4% Korea, South 1,359,924 8.7% 389,000 0.3% 28.6% People's Republic of China 1,806,553 22.5% 818,000 21.9% 45.3% Philippines 200,521 13.8% 99,000 25.3% 49.2% Republic of China (Taiwan) 384,581 32.5% 186,000 34.8% 48.4% Singapore 152,823-5.7% 67,000-11.8% 44.1% Thailand 88,163 7.8% 40,000-2.4% 45.1% MIDDLE EAST 1,058,122 14.3% 225,000 10.8% 21.3% Egypt 66,262 6.3% 5,000-66.7% 7.4% Israel 331,359 9.1% 61,000-3.2% 18.3% Saudi Arabia 221,230 21.4% 55,000 14.6% 24.7% Turkey 160,417 16.8% 40,000 60.0% 25.0% Other Middle East 278,854 116.3% 64,000 23.1% 23.0% TOTAL OVERSEAS VISITORS 32,038,458 7.7% 6,609,000 6.6% 20.6% (Number of Respondents) (36,681) (6,744) Mexico (Air Arrivals Only) 2,218,268 4.7% 515,000 2.2% 23.2% 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. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013. CIC Research, Inc., and Visit California. 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 (2001-2013) 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 2001 22.2% 18.2% 20.6% 15.4% 24.5% 25.0% 19.6% 15.3% 18.1% 30.6% 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% OTHER EUROPE 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 2001 4,847,000 1,728,000 271,000 631,000 215,000 118,000 81,000 42,000 370,000 463,000 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 OTHER EUROPE 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 (2001-2013) 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 2001 32.5% 20.8% 46.3% 60.8% 65.0% 43.0% 64.1% 54.1% 52.1% 11.5% 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% 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 2001 2,053,000 849,000 286,000 104,000 232,000 116,000 149,000 317,000 222,000 291,000 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 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 (2013)...xiii OVERSEAS AND MEXICAN LEISURE VISITORS TO CA HIGHLIGHTS (2013)... xv Table 1 RESIDENCE OF VISITORS TO THE U.S. AND CALIFORNIA (2013)...xvii Table 2 OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA AND SHARE OF TOTAL U.S. MARKET BY COUNTRY 2001-2013... 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 19 TRIP EXPENDITURES... 46 xxxiii

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INTRODUCTION This report on overseas visitors to California is based on data compiled from the 2013 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 6,700 survey respondents reported a California visit in 2013. 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 2013 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 (2013) 3

Figure 2 MAIN STATE DESTINATION OVERSEAS VISITORS TO CALIFORNIA (2013) Other, 11% Florida, 1% Hawaiian Islands, 2% Nevada, 4% New York, 5% California, 77% Source: : U.S. Department of Commerce, NTTO, In-Flight Survey, 2013 CIC Research, Inc. 4

Table 3 MAIN DESTINATION BY STATE OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2013) More than three in four (77%) overseas visitors to California in 2013 indicated that California was their main destination on their U.S. trip. Of all overseas visitors to California, Japanese, South Korea, Mexico (air), and Indian visitors (89%, 86%, 85% and 82% respectively) reported the highest proportion with California as their main state of destination in the U.S. COUNTRY OF RESIDENCE OF VISITORS MAIN DESTINATION* TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) ESTIMATED TRAVELERS 6,609,000 652,000 421,000 389,000 157,000 553,000 818,000 240,000 536,000 389,000 206,000 515,000 (Number of Respondents) (4,772) (476) (315) (190) (111) (182) (249) (175) (834) (266) (142) (111) California 76.7% 79.5% 76.2% 78.3% 73.6% 39.9% 73.3% 82.2% 88.9% 85.9% 73.3% 84.8% New York 5.1 2.6 2.9 6.5 11.2 20.1 7.1 2.1 0.7 4.5 3.8 3.0 Nevada 4.1 6.7 6.9 4.2 1.5 3.5 1.7 0.7 1.4 3.8 12.4 2.0 Hawaiian Islands 2.0 1.9 2.3 3.3 3.6 9.5 0.2 1.3 2.6 0.4 1.6 - Florida 1.3 0.9 1.6 1.1 2.8 1.3 2.3-0.7-3.1 - *Visitors may report only one destination -- States with less than one percent response were not listed. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013. CIC Research, Inc., and Visit California. 5

Figure 3 TOP TEN MSA DESTINATIONS OVERSEAS VISITORS TO CALIFORNIA (2013) Los Angeles - Long Beach 57.2% San Francisco 46.1% San Diego 12.6% Anaheim San Jose Salinas Riverside Santa Barbara - Lompoc Sacramento San Luis Obispo 7.3% 6.3% 4.4% 3.4% 2.9% 2.9% 1.9% 0% 10% 20% 30% 40% 50% 60% 70% Source: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013 CIC Research, Inc. 6

Table 4 CALIFORNIA MSAs VISITED OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA* (2013) The most common Metropolitan Statistical Areas (MSAs) visited by overseas visitors to California in 2013 were Los Angeles Long Beach (57%) (58% in 2012), San Francisco (46%) (48% in 2012), San Diego (13%) (13% in 2012), Anaheim Santa Ana (7%) (8% in 2012), followed by San Jose (6%), Salinas (4%), Riverside-San Bernardino, Santa Barbara, and Sacramento (3% each respectively). METROPOLITAN STATISTICAL AREA* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 6,609,000 652,000 421,000 389,000 157,000 553,000 818,000 240,000 536,000 389,000 206,000 515,000 (Number of Respondents) (6,543) (566) (438) (280) (146) (358) (454) (223) (1,098) (361) (175) (111) SOUTH KOREA BRAZIL MEXICO (AIR) Los Angeles-Long Beach MSA 3,781,000 341,000 215,000 265,000 44,000 383,000 609,000 83,000 198,000 239,000 124,000 215,000 (Los Angeles County) 57.2% 52.3% 51.1% 68.1% 28.0% 69.3% 74.4% 34.6% 36.9% 61.4% 60.2% 41.7% San Francisco MSA 3,044,000 326,000 240,000 281,000 73,000 242,000 379,000 97,000 145,000 181,000 99,000 78,000 (San Francisco-Marin-San Mateo Counties) 46.1% 50.0% 57.0% 72.2% 46.5% 43.8% 46.3% 40.4% 27.1% 46.5% 48.1% 15.1% San Diego MSA 833,000 96,000 71,000 50,000 13,000 71,000 83,000 23,000 67,000 27,000 35,000 35,000 (San Diego County) 12.6% 14.7% 16.9% 12.9% 8.3% 12.8% 10.1% 9.6% 12.5% 6.9% 17.0% 6.8% Anaheim-Santa Ana MSA 481,000 65,000 21,000 17,000 2,000 105,000 14,000 14,000 52,000 31,000 16,000 64,000 (Orange County) 7.3% 10.0% 5.0% 4.4% 1.3% 19.0% 1.7% 5.8% 9.7% 8.0% 7.8% 12.4% San Jose MSA 416,000 46,000 29,000 14,000 3,000 13,000 31,000 63,000 56,000 22,000 4,000 33,000 (Santa Clara County) 6.3% 7.1% 6.9% 3.6% 1.9% 2.4% 3.8% 26.3% 10.4% 5.7% 1.9% 6.4% Salinas MSA 288,000 81,000 25,000 35,000 8,000 11,000 23,000-4,000 3,000 14,000 18,000 (Monterey County) 4.4% 12.4% 5.9% 9.0% 5.1% 2.0% 2.8% - 0.7% 0.8% 6.8% 3.5% Riverside-San Bernardino MSA 224,000 50,000 27,000 9,000 2,000 13,000 13,000 3,000 7,000 5,000 8,000 20,000 (Riverside-San Bernardino Counties) 3.4% 7.7% 6.4% 2.3% 1.3% 2.4% 1.6% 1.3% 1.3% 1.3% 3.9% 3.9% 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 6,609,000 652,000 421,000 389,000 157,000 553,000 818,000 240,000 536,000 389,000 206,000 515,000 (NUMBER OF RESPONDENTS) (6,543) (566) (438) (280) (146) (358) (454) (223) (1,098) (361) (175) (111) SOUTH KOREA BRAZIL MEXICO (AIR) Santa Barbara-Lompoc MSA 192,000 35,000 15,000 20,000 8,000 8,000 11,000 2,000 11,000-14,000 7,000 (Santa Barbara County) 2.9% 5.4% 3.6% 5.1% 5.1% 1.4% 1.3% 0.8% 2.1% - 6.8% 1.4% Sacramento MSA 192,000 19,000 17,000 11,000 3,000 7,000 18,000 9,000 7,000 19,000 6,000 - (El Dorado-Placer-Sacramento- Yolo Counties) 2.9% 2.9% 4.0% 2.8% 1.9% 1.3% 2.2% 3.8% 1.3% 4.9% 2.9% - San Luis Obispo MSA 128,000 38,000 19,000 17,000 4,000 12,000 2,000 - - 1,000 8,000 - (San Luis Obispo County) 1.9% 5.8% 4.5% 4.4% 2.5% 2.2% 0.2% - - 0.3% 3.9% - Oakland MSA 128,000 12,000 13,000 6,000 2,000 2,000 20,000-11,000 10,000 4,000 27,000 (Alameda-Contra Costa Counties) 1.9% 1.8% 3.1% 1.5% 1.3% 0.4% 2.4% - 2.1% 2.6% 1.9% 5.2% *Visitors may report multiple destinations -- percentages are read down the column. Counties with less than a two percent share of the California market were not listed. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013. CIC Research, Inc., and Visit California. 9

Figure 4 TRAVEL COMPANIONS OVERSEAS VISITORS TO CALIFORNIA / U.S. (2013) 70% 60% 61.1% 58.5% California Visitors U.S. Visitors 50% 40% 30% 21.3% 22.6% 20% 13.2% 15.5% 10% 0% 5.9% 6.0% 3.8% 2.8% 0.7% 0.3% Traveling Alone Spouse/Partner Family/Relatives Friends Business Assoc. Tour Group Source: U.S. Department of Commerce, NTTO Survey of International Air Travelers, 2013 CIC Research, Inc. 10

Table 5 TRAVEL COMPANIONS OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2013) More than six in ten overseas visitors to California (61%) were traveling alone, 21% were traveling with a spouse/partner, and 13% were traveling with family or relatives. Visitors from India (81%) had the highest proportion of respondents who were traveling alone, while visitors from Italy (36%) and Australia (35%) had the highest proportion that was traveling with a spouse/partner. Visitors from Mexico (air) (23%) had the highest proportion of respondents who were traveling with family/relatives, and visitors from Japan (14%) and China (9%), had the highest proportion traveling with business associates. COUNTRY OF RESIDENCE OF VISITORS TRAVEL COMPANIONS* TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) ESTIMATED TRAVELERS 6,609,000 652,000 421,000 389,000 157,000 553,000 818,000 240,000 536,000 389,000 206,000 515,000 (Number of Respondents) (6,700) (590) (461) (285) (148) (365) (460) (231) (1,122) (367) (176) (119) Traveling Alone 61.1% 62.4% 59.4% 54.4% 46.0% 50.0% 54.7% 80.9% 65.7% 58.8% 60.1% 57.4% Spouse/Partner 21.3 26.3 25.1 24.0 35.7 35.3 15.9 10.7 9.8 16.6 31.7 15.9 Family/Relatives 13.2 9.6 9.9 18.9 14.2 13.6 18.5 7.9 7.7 18.2 17.4 23.3 Friends 5.9 4.9 8.7 7.5 5.3 7.7 9.5 0.9 4.3 7.8 1.4 4.7 Business Associates 3.8 2.2 1.5 2.2 3.4 0.5 9.0 2.3 14.0 4.0 0.3 1.9 Tour Group 0.7-0.8 4.4 0.1-1.4-0.5 1.3-1.7 *Column percentages may total more than 100% due to multiple responses. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013. CIC Research, Inc., and Visit California. 11

Figure 5 MAIN PURPOSE OF U.S. TRIP OVERSEAS VISITORS TO CALIFORNIA / U.S. (2013) 70% 60% 51.6% 56.9% California Visitors 50% US Visitors 40% 30% 20% 10% 16.6% 17.1% 15.3% 12.0% 9.0% 7.2% 5.7% 4.6% 1.8% 2.4% 0% Vacation Friend/Relative Business Convention Education Other Source: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013 CIC Research, Inc. 12

Table 6 MAIN PURPOSE OF TRIP OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2013) The greatest proportion of overseas visitors to California reported the main purpose of their trip as vacation/holidays (52%). This was followed by those whose main purpose was visiting friends/relatives (17%), and those whose main purpose was business/professional (15%). Visitors from Australia (79%), France (71%), Italy (70%), and Brazil (65%) had the highest proportion of visitors whose main purpose was vacation/holidays, while visitors from India (30%) and South Korea (21%) had the highest proportion of visitors whose main purpose was visiting friends/relatives. Visitors from Japan and India (38% each) had the highest proportion of visitors whose main purpose was business/professional. COUNTRY OF RESIDENCE OF VISITORS MAIN PURPOSE OF TRIP TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) ESTIMATED TRAVELERS 6,609,000 652,000 421,000 389,000 157,000 553,000 818,000 240,000 536,000 389,000 206,000 515,000 (Number of Respondents) (6,097) (550) (423) (272) (138) (345) (420) (193) (1,019) (335) (162) (103) Vacation/Holidays 51.6% 56.8% 57.2% 70.8% 69.7% 79.4% 44.2% 12.6% 26.2% 43.9% 65.0% 50.0% Visit Friends/Relatives 16.6 16.2 16.6 10.6 8.3 8.6 14.9 29.8 12.8 20.5 12.5 25.9 Business/Professional 15.3 18.0 10.8 9.1 13.5 4.3 12.9 38.4 38.0 16.3 4.0 10.3 Attend A Convention 9.0 5.8 6.6 4.3 5.3 4.9 14.2 13.4 16.2 9.3 7.3 4.0 Education 5.7 1.8 5.8 4.4 1.0 1.3 13.1 3.7 4.1 7.8 8.3 3.9 Other 1.8 1.5 2.9 0.8 2.1 1.6 0.7 2.0 2.8 2.3 2.9 5.8 Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013. CIC Research, Inc., and Visit California. 13

70% 60% 64.1% Figure 6 PURPOSE OF U.S. TRIP OVERSEAS VISITORS TO CALIFORNIA / U.S. (2013) 66.7% California Visitors U.S. Visitors 50% 40% 30% 32.2% 28.6% 20% 10% 19.7% 15.4% 12.1% 9.5% 8.3% 6.6% 4.0% 3.6% 0% Vacation Friend/Relative Business Convention Education Other Source: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013 CIC Research, Inc. 14

Table 7 PURPOSE OF TRIP OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2013) More than six in ten (64%) overseas visitors to California reported visiting for vacation/holiday purposes, while 32% were visiting friends/relatives (63% in 2012 were on vacation/holiday, and 33% were visiting friends/relatives), and 20% were on business (19% in 2012). Visitors to California attending a convention/conference/trade show accounted for 12% (the same as in 2012). Visitors were allowed to list more than one purpose of their trip. Visitors from Australia (89%) indicated high proportions of vacationing during their U.S. trip, while visitors from India (21%) and Japan (20%) reported high proportions of attending a convention/conference/trade show when compared with visitors from other countries. Visitors to California from India (49%) and Japan (46%) reported a high proportion of visiting for business purposes when compared with visitors from other countries, while visitors from Brazil (7%) and Australia (6%) reported the lowest proportion visiting for this reason. COUNTRY OF RESIDENCE OF VISITORS PURPOSE OF TRIP* TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) ESTIMATED TRAVELERS 6,609,000 652,000 421,000 389,000 157,000 553,000 818,000 240,000 536,000 389,000 206,000 515,000 (Number of Respondents) (6,600) (582) (459) (281) (146) (365) (453) (227) (1,089) (356) (177) (117) Vacation/Holidays 64.1% 67.6% 72.0% 79.3% 74.2% 88.5% 56.8% 23.5% 34.5% 55.9% 79.3% 61.9% Visit Friends/Relatives 32.2 34.4 35.1 21.6 20.1 27.4 27.5 34.5 21.1 33.5 26.0 35.1 Business/Professional 19.7 20.3 13.2 12.7 18.0 6.4 19.4 49.1 45.6 18.8 7.2 19.1 Attend A Convention 12.1 8.4 8.4 6.3 6.8 6.2 18.4 20.9 20.4 11.5 9.2 8.9 Education 8.3 2.7 9.5 7.4 4.7 3.8 16.6 4.1 5.4 9.9 14.6 4.9 Other 4.0 4.1 5.2 3.1 6.0 5.9 3.6 2.1 3.5 3.4 6.5 8.5 *Column percentages may total more than 100% due to multiple responses. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013. CIC Research, Inc., and Visit California. 15

Figure 7 LEISURE RECREATION ACTIVITIES OVERSEAS VISITORS TO CALIFORNIA (2013) Shopping Sightseeing 87.6% 83.7% National Parks/Monuments Experience Fine Dining Small Towns/Countryside Amusement/Theme Parks Historical Locations Guided Tours Art Gallery/Museum 48.9% 42.5% 41.1% 38.3% 36.7% 33.2% 30.4% 0% 20% 40% 60% 80% 100% Source: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013 CIC Research, Inc. 16

Table 8 LEISURE-RECREATION ACTIVITIES OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2013) Shopping (88%) followed by sightseeing (84%) and visiting national parks/monuments (49%) were the most common leisure and recreation activities enjoyed by overseas visitors to California in 2013. Visitors from Australia had the highest proportion of respondents who mentioned shopping, sightseeing, or visiting national parks/monuments as a favorite leisure/recreation activity (96%, 93% and 66% respectively.) Experiencing fine dining was mentioned most frequently by visitors from Australia (55%) and China (51%). 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 6,609,000 652,00 421,000 389,000 157,000 553,000 818,000 240,000 536,000 389,000 206,000 515,000 (Number of Respondents) (5,604) (522) (400) (250) (119) (338) (395) (174) (768) (306) (162) (97)** Shopping 87.6% 84.6% 89.5% 86.6% 80.5% 95.8% 86.7% 88.1% 81.1% 78.2% 91.6% 90.2% Sightseeing 83.7 86.3 88.1 86.6 70.8 92.6 80.1 81.1 73.9 83.9 89.0 59.2 National Parks/Monuments 48.9 54.2 60.0 61.9 54.7 65.5 43.6 26.4 23.1 39.1 51.0 29.0 Experience Fine Dining 42.5 44.9 35.7 46.9 29.8 54.7 50.6 33.0 39.0 26.8 31.2 48.3 Small Towns/Countryside 41.1 48.7 58.9 43.9 41.9 47.1 41.6 27.7 15.0 13.3 33.9 24.0 Amusement/Theme Parks 38.3 32.4 30.8 38.3 31.5 52.8 46.7 30.8 19.3 42.5 52.9 32.8 Historical Locations 36.7 42.4 53.3 39.4 37.2 54.4 31.8 18.7 16.0 17.8 40.8 31.0 Guided Tours 33.2 43.4 31.5 33.2 40.8 62.4 27.4 18.6 15.2 20.1 26.7 19.6 Art Gallery/Museum 30.4 35.1 29.5 28.6 27.9 42.3 38.5 23.1 14.1 21.8 40.1 27.9 Casinos/Gambling 25.0 23.1 27.4 30.2 27.7 43.3 21.2 10.7 10.7 24.2 31.1 8.9 Cultural/Ethnic Heritage 20.9 23.3 25.7 21.3 18.9 28.0 25.2 8.7 8.8 19.2 18.1 17.1 Concert/Play/Musical 20.4 16.8 20.8 10.2 10.7 42.2 14.3 10.2 10.2 25.6 39.2 22.6 Nightclubs/Dancing 16.6 17.4 19.1 13.1 21.5 27.4 5.4 19.4 7.1 3.1 41.1 17.2 Sporting Event 15.7 22.7 15.6 11.8 10.2 31.4 9.7 10.5 9.2 8.9 16.0 14.3 Visit Am. Indian Comm. 9.8 7.2 15.4 18.3 16.5 17.5 8.3 10.8 1.7 9.5 5.2 2.2 Camping/Hiking 8.6 11.5 19.3 11.4 4.4 8.8 5.2 4.8 2.8 5.3 2.7 1.0 Water Sports 7.9 10.0 9.1 8.8 7.7 10.5 7.0 5.2 4.1 3.5 4.0 0.5 Environ./Eco. Excursions 5.4 3.7 7.3 4.1 6.7 5.5 10.4 5.7 1.4 4.4 5.8 2.0 Golfing/Tennis 4.9 4.2 0.9 4.2 3.7 5.9 3.6 10.3 8.3 9.5 6.7 2.0 Snow Sports 3.1 1.3 0.6 1.5-7.7 2.5 2.5 0.4 1.4 6.3 0.3 Hunting/Fishing 1.4 1.8 1.1 1.0-1.0 2.7 1.4 0.4 0.5 0.7 0.7 *Multiple response. Only responses one percent or greater are detailed. **Caution - small sample size. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013. CIC Research, Inc., and Visit California. 17

Figure 8 ADVANCE TRIP DECISION OVERSEAS VISITORS TO CALIFORNIA / U.S. (2013) 40% 30% 20.8% 21.0% 20.4% California Visitors Avg. = 105 Days Median = 65 Days 24.3% 23.1% U.S. Visitors Avg. = 94 Days Median = 60 Days 20% 11.7% 11.8% 17.4% 14.7% 12.3% 10.9% 11.4% 10% 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, 2013 CIC Research, Inc. 18

Table 9 ADVANCE TRIP DECISION OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2013) The median time period for overseas visitors decision to travel was 65 days before the actual trip. In the four previous years, this decision was made a median of 60 days prior to the trip. Respondents from Australia had the longest planning time frame, with a median of 150 days. India, South Korea, and Mexico (air) had the shortest planning time frame with a median of just 30 days. COUNTRY OF RESIDENCE OF VISITORS ADVANCE TRIP TOTAL CHINA SOUTH MEXICO DECISION* OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA w/o HK INDIA JAPAN KOREA BRAZIL (AIR) ESTIMATED TRAVELERS 6,609,000 652,000 421,000 389,000 157,000 553,000 818,000 240,000 536,000 389,000 206,000 515,000 (Number of Respondents) (6,462) (569) (447) (276) (148) (355) (432) (226) (1,084) (355) (173) (115) 14 Days or Less 11.7% 13.0% 9.7% 4.3% 7.9% 4.5% 13.0% 20.8% 19.0% 14.2% 3.5% 17.5% 15-30 Days 20.8 12.2 9.3 8.3 18.9 8.8 35.1 36.9 28.8 38.2 13.5 34.0 31-60 Days 17.4 14.8 10.4 18.7 10.2 8.2 21.9 17.9 23.0 20.5 15.9 21.9 61-120 Days 23.1 23.6 28.5 29.0 22.7 24.2 21.0 17.6 20.2 17.1 36.7 11.9 121-180 Days 12.3 13.5 16.5 13.7 22.5 21.7 6.4 5.1 6.5 4.7 16.0 7.6 181 or More Days 14.7 22.8 25.5 26.0 17.8 32.6 2.7 1.8 2.5 5.3 14.5 7.1 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 104.7 125.9 140.1 143.5 121.1 174.4 60.6 52.0 60.1 64.6 116.9 66.3 Median No. of Days 65.0 90.0 100.0 100.0 100.0 150.0 40.0 30.0 40.0 30.0 90.0 30.0 *Column percentages may not total 100% due to rounding. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013. CIC Research, Inc., and Visit California. 19

Figure 9 ADVANCE AIRLINE DECISION OVERSEAS VISITORS TO CALIFORNIA / U.S. (2013) 40% 30% 25.7% 26.4% California Visitors Avg. = 72 Days Median = 47 Days U.S. Visitors Avg. = 69 Days Median = 45 Days 20% 19.2% 18.7% 17.2% 21.2% 20.1% 20.6% 10% 9.4% 8.3% 7.2% 6.0% 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, 2013 CIC Research, Inc. 20

Table 10 ADVANCE AIRLINE TICKET RESERVATION OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2013) In 2013 an overseas visitor committed to an airline ticket reservation a median of 47 days prior to the actual trip. Seven percent of travelers booked their airline reservations six months or more in advance of their trip. Visitors from Australia made their airline travel reservations a median of 100 days in advance. By contrast, visitors from India booked their airline tickets a median of only 20 days in advance of their U.S. trip. COUNTRY OF RESIDENCE OF VISITORS ADVANCE AIRLINE RESERVATIONS* TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) ESTIMATED TRAVELERS 6,609,000 652,000 421,000 389,000 157,000 553,000 818,000 240,000 536,000 389,000 206,000 515,000 (Number of Respondents) (6,206) (549) (431) (265) (143) (349) (412) (217) (1,031) (346) (169) (113) 14 Days or less 19.2% 18.2% 14.1% 9.0% 16.6% 10.9% 22.9% 33.7% 30.9% 32.4% 8.5% 26.3% 15-30 Days 25.7 12.8 11.2 21.9 18.7 11.4 44.4 36.4 31.1 36.4 18.3 40.2 31-60 Days 17.2 16.2 15.2 16.9 15.5 12.2 18.4 10.0 20.6 14.5 26.1 19.6 61-120 Days 21.2 27.2 31.4 28.9 24.9 30.8 11.1 15.9 12.9 0.7 34.0 8.1 121-180 Days 9.4 12.1 13.6 12.6 16.2 19.7 1.7 3.3 3.7 3.1 11.3 2.7 181 or More Days 7.2 13.6 14.5 10.6 8.2 15.1 1.5 0.8 0.9 2.5 1.7 3.1 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 72.2 96.7 104.0 92.9 84.1 115.3 38.7 37.8 42.2 39.9 76.8 42.3 Median No. of Days 47.0 80.0 90.0 80.0 60.0 100.0 30.0 20.0 30.0 25.0 60.0 30.0 *Column percentages may not total 100% due to rounding. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013. CIC Research, Inc., and Visit California. 21

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Table 11 ADVANCE INTERNATIONAL AIRLINE TICKET PAYMENT OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2013) In 2013 an overseas visitor paid for their international airline ticket a median of 42 days prior to the actual trip. More than five percent of travelers paid for their airline reservations six months or more in advance of their trip. Visitors from France and Australia paid for their international airline tickets a median of 3 months in advance. By contrast, visitors from India and South Korea paid for their airline tickets a median of only 20 days in advance of their U.S. trip. COUNTRY OF RESIDENCE OF VISITORS ADVANCE AIRLINE PAYMENT* TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) ESTIMATED TRAVELERS 6,609,000 652,000 421,000 389,000 157,000 553,000 818,000 240,000 536,000 389,000 206,000 515,000 (Number of Respondents) (5,987) (550) (406) (266) (137) (351) (409) (204) (940) (338) (161) (108) 14 Days or less 24.0% 18.5% 15.3% 8.1% 17.9% 12.4% 30.5% 41.8% 38.4% 46.2% 11.7% 28.0% 15-30 Days 24.3 13.0 17.6 24.6 24.2 13.5 38.0 30.4 31.1 27.7 20.9 29.3 31-60 Days 17.3 18.9 18.3 16.2 10.1 15.1 18.8 13.9 16.1 13.1 20.8 26.7 61-120 Days 19.3 25.1 27.3 27.8 29.4 26.8 10.9 11.9 10.5 9.1 30.5 9.1 121-180 Days 9.7 14.7 10.4 14.2 14.3 22.5 1.7 0.7 3.2 2.1 14.8 4.1 181 or More Days 5.5 9.8 11.0 9.1 4.2 9.8-1.3 0.8 1.9 1.2 2.9 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 68.2 92.0 89.4 93.0 77.9 105.3 35.6 33.4 38.5 36.6 75.4 47.2 Median No. of Days 42.0 60.0 60.0 90.0 60.0 90.0 30.0 20.0 30.0 20.0 60.0 30.0 *Column percentages may not total 100% due to rounding. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013. 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 (2013) In 2013, 31% of overseas visitors to California used a travel agent to make airline reservations. This was followed by 28% who made airline reservations directly with the airline and 24% who made reservations via an Internet booking service. These results are almost unchanged from the previous year. Visitors from Australia reported the highest use of travel agents in booking their air trip (58%). Visitors from Mexico (air) as well as the UK reported the highest use of booking directly with the airline (42% and 41% respectively), while visitors from Mexico (air) (40%), followed by Brazil (32%), Germany and China (30% each) reported the highest use of an Internet booking service to make airline reservations. In comparison, when making lodging reservations, 31% of visitors to California made use of an Internet booking service, 19% contacted the lodging establishment directly, and 15% used a travel agency office. Visitors from Australia (39%) reported the highest proportion who booked their lodging via an Internet booking service. Visitors from Mexico (air) reported the highest proportion who booked directly with the lodging establishment (35%), while visitors from Australia (36%) reported the highest use of a travel agency office in booking their lodging. 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 6,609,000 652,000 421,000 389,000 157,000 553,000 818,000 240,000 536,000 389,000 206,000 515,000 (Number of Respondents) (6,683) (587) (456) (284) (148) (364) (460) (231) (1,111) (368) (178) (119) Travel Agency Office 30.8% 17.3% 33.3% 21.7% 34.1% 58.2% 21.2% 30.8% 39.5% 25.4% 30.7% 22.0% Directly with the Airline 28.4 41.4 22.1 33.2 19.8 23.4 23.3 11.1 23.0 21.9 33.4 41.8 Internet Booking Service 23.5 16.2 30.2 25.2 22.7 15.1 30.0 17.2 15.7 21.8 32.0 39.6 Corporate Travel Dept. 14.5 17.0 12.7 10.8 7.5 7.8 17.6 40.2 18.0 17.4 11.0 8.2 Tour Operator/Travel Club 9.0 12.7 6.2 9.2 19.8 4.3 15.8 4.2 4.8 16.1 11.5 4.9 Other 1.5 1.6 0.4 2.5 2.0 0.4 3.9 0.9 1.2 0.0 1.8 0.2 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% MEANS OF BOOKING LODGING (Number of Respondents) (6,324) (576) (436) (265) (136) (353) (433) (213) (1,059) (342) (171) (110) Yes, Booked by** 71.2% 75.5% 68.0% 66.8% 69.5% 88.6% 77.0% 51.9% 78.1% 61.1% 72.5% 63.1% Internet Booking Service 30.5% 26.9% 32.2% 30.8% 28.5% 39.0% 34.6% 10.3% 23.0% 28.5% 34.0% 22.6% The Lodging Establish. 19.0 29.3 22.1 19.8 13.0 26.9 11.2 8.7 12.6 10.1 23.9 35.3 Travel Agency Office 14.6 9.3 17.9 10.5 23.8 36.3 11.6 2.8 19.6 4.8 20.0 0.9 Corporate Travel Dept. 9.5 12.6 5.2 5.5 2.4 5.2 11.2 30.1 15.6 10.3 4.9 6.0 Tour Operator/Travel Club 5.3 7.5 5.8 5.6 9.1 3.4 10.8 1.6 4.8 6.7 2.6 2.8 Other 2.4 2.1 1.5 2.4 2.3 2.5 4.4 1.2 3.7 2.6 0.8 - No 28.8% 24.5% 32.0% 33.2% 30.5% 11.4% 23.0% 48.1% 21.9% 38.9% 27.5% 36.9% *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, 2013. CIC Research, Inc., and Visit California. 25

Figure 10 TRAVEL INFORMATION SOURCES OVERSEAS VISITORS TO CALIFORNIA / U.S. (2013) Airline Online Travel Agency Personal Recommendation Travel Agency Office Travel Guide Corporate Travel Department National/State/City Travel Office Tour Operator/Travel Club Other 14.5% 12.4% 14.3% 12.8% 8.0% 9.6% 8.8% 8.5% 5.2% 5.1% 30.6% 30.5% 25.8% 24.1% 25.8% 23.9% 42.6% 43.1% California Visitors U.S. Visitors Source: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013 CIC Research, Inc. 26

Table 13 U.S. TRIP INFORMATION SOURCES OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2013) Trip information sources used by overseas travelers to California in 2013 to plan their trip, consisted of calling the airlines directly (43%), use of an online travel agency (31%), followed by a personal recommendation and a travel agency office (26% each). Use of a travel guide (15%) and corporate travel department (14%) rounded out the top information sources. These results are very similar to those from the previous year. Travelers from the U.K., Mexico (air), and Brazil (56% 51%, and 50% 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 Mexico (air), Italy, and Germany (44%, 41%, and 41% respectively). Use of a personal recommendation as a source of trip information was greatest among visitors from Brazil (50%), while use of a travel agency office was greatest among visitors from Australia (52%). INFORMATION SOURCES* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 6,609,000 652,000 421,000 389,000 157,000 553,000 818,000 240,000 536,000 389,000 206,000 515,000 (Number of Respondents) (6,616) (583) (457) (280) (143) (365) (450) (226) (1,097) (361) (177) (119) Airline 42.6% 55.5% 36.9% 37.9% 34.6% 34.1% 34.6% 38.3% 43.2% 36.1% 50.0% 50.7% Online Travel Agency 30.6 30.4 40.7 28.6 41.3 36.1 24.1 23.5 13.8 27.7 31.7 43.6 Personal Recommendation 25.8 22.7 25.5 27.2 23.3 32.0 27.6 21.3 13.1 24.4 50.3 20.9 Travel Agency Office 25.8 17.0 29.7 18.9 35.5 52.3 12.6 21.7 35.4 14.6 26.5 13.9 Travel Guide 14.5 16.6 20.8 19.1 21.2 12.0 14.0 3.9 13.9 7.2 25.0 10.0 Corporate Travel Dept. 14.3 14.8 14.4 11.7 17.1 9.9 15.9 35.5 10.8 14.3 19.0 9.4 Government Travel Office 8.0 6.5 6.3 6.1 14.4 9.1 5.3 5.1 3.4 3.7 22.7 19.8 Tour Operator/Travel Club 8.8 11.5 7.2 8.3 19.8 9.3 8.1 6.5 4.0 16.9 10.0 6.6 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, 2013. 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 (2013) More than three-quarters (78%) of overseas visitors to California in 2013 used a paid ticket, while 6% used a discount/group fare, and almost 4% used a frequent flier award ticket. Visitors from India, the U.K., Italy, and Australia reported the highest use of a paid fare (86%, 85%, 85%, and 85% respectively), while visitors from Australia and Brazil reported the highest use of a frequent flier award ticket (6% each), and visitors from China and South Korea reported the highest use of a discount/group fare (18% and 17% 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 2013 survey, both prepaid airfare and prepaid accommodations needed to be included at a minimum. Visitors from France, China and Italy took the greatest advantage of all inclusive tour packages (24%, 23% and 23% respectively). On the other hand, visitors from Mexico (air) and India used packages the least (5% and 8% respectively). 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 6,609,000 652,000 421,000 389,000 157,000 553,000 818,000 240,000 536,000 389,000 206,000 515,000 (Number of Respondents) (6,051) (533) (407) (256) (136) (328) (405) (207) (1,042) (345) (162) (100) Paid Ticket 78.1% 85.2% 79.1% 77.8% 84.9% 84.5% 72.0% 85.8% 69.0% 59.7% 71.6% 49.9% Discount/Group Fare 5.5 0.8 3.5 7.2-1.7 17.6-8.6 17.4 2.3 0.1 Frequent Flyer Award Ticket 3.8 3.8 4.9 1.2 1.6 6.4 1.5 1.8 2.1 4.1 6.3 0.5 Paid Upgrade 2.7 3.5 0.3 0.4-2.8 3.4 0.3 8.4 4.2 1.8 2.4 Non-Revenue 1.7 1.7 1.2 1.6 1.1 1.6 0.9 0.3 2.4 2.5 0.8 2.6 Frequent Flyer Upgrade 1.0 0.8 1.4 1.1 2.0 0.5 0.5 0.5 2.4 1.1-1.2 Don't Know 9.9 5.4 11.0 11.8 12.4 4.4 10.4 12.0 11.6 16.2 18.7 46.5 USE OF PREPAID PACKAGE (Number of Respondents) (6,517) (576) (444) (278) (142) (360) (446) (211) (1,106) (359) (172) (111) YES** 14.6% 14.4% 10.1% 23.8% 22.8% 16.7% 23.2% 7.8% 16.0% 18.3% 10.2% 5.1% Bus/Coach 6.5 3.6 3.0 13.9 6.0 11.2 10.6 0.6 5.2 14.5 0.8 1.0 Attract./Events/Entertain. 6.9 2.6 3.9 15.0 6.6 11.7 14.4 0.9 5.6 10.9 0.2 5.1 Meals 6.3 2.1 2.6 15.9 4.8 5.7 13.4 3.9 6.3 13.4 2.7 4.4 Guided Tours 6.1 3.2 2.6 16.2 8.1 8.9 11.8 0.3 6.4 11.7-1.7 Tour Guide for Entire Trip 4.1 1.4 3.2 14.2 3.4 2.2 10.6-3.9 7.4 - - Rental Car 4.7 4.8 4.0 8.6 12.2 5.5 9.6 3.8 0.6 1.0 5.2 - Airfare & Accom. Only 2.5 3.7 2.3 2.5 2.2 0.6 2.9 3.0 5.2 1.0 2.3 - Cruise 1.8 3.1 0.1 5.7 0.7 1.9 4.1-2.0 0.2 - - Recreation 1.3 0.1-6.1-1.6 2.9-1.2 0.6-1.0 Rail Tickets 0.7 0.4 0.7 0.7-1.4 1.3-2.7-0.3 - NO 85.4% 85.6% 89.9% 76.2% 77.2% 83.3% 76.8% 92.2% 84.0% 81.7% 89.8% 94.9% *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, 2013. CIC Research, Inc., and Visit California. 29 SOUTH KOREA BRAZIL MEXICO (AIR)

Figure 11 TRAVEL PARTY SIZE OVERSEAS VISITORS TO CALIFORNIA / U.S. (2013) 100% 91.1% 90.2% California Visitors Avg. Party Size: 1.6 80% U.S. Visitors Avg. Party Size: 1.6 60% 40% 20% 8.9% 9.8% 0% Adults Only Adults and Children Source: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013 CIC Research, Inc. 30

Table 15 TRAVEL PARTY SIZE OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2013) The mean total party size for all overseas travelers in 2013 was 1.6 persons. 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 China (16%) and France (14%), followed by South Korea, Mexico (air) and Brazil (12% each). COUNTRY OF RESIDENCE OF VISITORS TRAVEL PARTY SIZE TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) ESTIMATED TRAVELERS 6,609,000 652,000 421,000 389,000 157,000 553,000 818,000 240,000 536,000 389,000 206,000 515,000 (Number of Respondents) (6,716) (591) (461) (284) (148) (365) (463) (231) (1,124) (367) (178) (118) Adults Only 91.1% 92.8% 92.8% 86.2% 91.6% 89.7% 84.0% 96.9% 94.6% 87.8% 88.4% 87.7% Adults and Children 8.9 7.2 7.2 13.8 8.4 10.3 16.0 3.1 5.4 12.2 11.6 12.3 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 Total Party Size 1.6 1.5 1.5 1.8 1.8 1.7 2.1 1.2 1.5 1.7 1.7 1.6 Median Total Party Size 1.0 1.0 1.0 1.0 2.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 ADULTS ONLY (Number of Respondents) (5,909) (533) (415) (228) (133) (315) (366) (220) (1,057) (316) (152) (103) Average Adult Party Size 1.4 1.3 1.4 1.4 1.6 1.5 1.8 1.2 1.4 1.5 1.4 1.4 Median Adult Party Size 1.0 1.0 1.0 1.0 2.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 ADULTS AND CHILDREN (Number of Respondents) (807) (58)* (46)* (56)* (15)* (50)* (97)* (11)* (67)* (51)* (26)* (15)* Average Party Size 3.7 3.7 3.6 4.1 3.9 3.7 3.7 3 3.1 3.4 3.8 3.4 Median Party Size 3.0 4.0 4.0 4.0 3.0 4.0 3.0 3.0 3.0 3.0 3.0 3.0 *Caution - Small sample size. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013. CIC Research, Inc., and Visit California. 31

Figure 12 GENDER OF OVERSEAS VISITORS OVERSEAS VISITORS TO CALIFORNIA / U.S. (2013) 70% 60% 58.1% 55.5% California Visitors U.S. Visitors 50% 41.9% 44.5% 40% 30% 20% 10% 0% Male Adults Female Adults Source: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013 CIC Research, Inc. 32

Table 16 GENDER AND AGE OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2013) Almost six in ten (58%) overseas travelers to California were adult males, and four in ten (42%) were adult females. The average age of traveling adult males was 42 years, versus 39 years for traveling adult females. COUNTRY OF RESIDENCE OF VISITORS GENDER AND AGE OF VISITOR* TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) ESTIMATED TRAVELERS 6,609,000 652,000 421,000 389,000 157,000 553,000 818,000 240,000 536,000 389,000 206,000 515,000 (Number of Respondents) (6,219) (536) (411) (268) (139) (337) (425) (209) (1,065) (352) (165) (106) MALE ADULTS 58.1% 60.9% 54.2% 49.4% 60.9% 51.3% 56.1% 77.1% 76.0% 54.4% 50.4% 48.6% 18-24 Years 5.9 8.2 5.8 4.2 3.6 5.3 7.6 2.2 3.1 4.0 7.5 7.4 25-34 Years 15.0 12.6 16.6 9.5 20.9 15.3 17.7 29.4 12.1 15.0 20.3 13.3 35-54 Years 25.9 27.5 22.2 23.8 26.2 16.0 24.1 33.0 43.4 29.0 16.0 19.2 55 + Years 11.5 12.6 9.5 11.7 10.3 14.7 6.6 12.4 17.4 6.5 6.6 8.7 Average Male Age 41.7 42.1 41.1 44.6 39.5 43.6 37.7 39.7 45.7 39.8 37.3 39.6 Median Male Age 40.0 42.0 38.0 44.0 38.0 40.0 35.0 36.0 46.0 39.0 34.0 37.0 FEMALE ADULTS 41.9% 39.1% 45.8% 50.6% 39.1% 48.7% 43.9% 22.9% 24.0% 45.6% 49.6% 51.4% 18-24 Years 7.5 6.0 12.4 10.6 7.0 9.8 4.2 3.2 3.3 7.2 12.4 8.3 25-34 Years 12.9 8.7 13.4 14.1 20.0 13.8 11.6 10.3 6.3 19.1 18.3 10.1 35-54 Years 14.2 12.3 14.5 13.0 8.1 15.0 23.4 7.7 9.7 13.8 15.7 29.9 55 + Years 7.2 12.0 5.6 13.0 4.0 10.1 4.7 1.7 4.8 5.5 3.1 3.1 Average Female Age 38.7 44.1 36.1 39.5 35.5 39.5 38.9 34.3 40.9 35.7 33.9 37.1 Median Female Age 35.0 44.0 32.0 35.0 30.0 38.0 37.0 30.0 39.0 33.0 31.0 37.0 *Column percentages may not total to 100% due to rounding. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013. CIC Research, Inc., and Visit California. 33

Figure 13 INCOME PROFILE OF OVERSEAS VISITORS OVERSEAS VISITORS TO CALIFORNIA / U.S. (2013) <$20K 14.6% 17.1% $20 - $59K 27.7% 27.0% $60 - $99K 21.9% 21.7% $100 - $139K 13.6% 14.5% $140 - $179K 7.4% 6.9% California Visitors Avg. Income = $100,900 >$180K 4.8% 14.8% U.S. Visitors Avg. Income = $94,800 Source: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013 CIC Research, Inc. 34

Table 17 ANNUAL HOUSEHOLD INCOME OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2013) The mean household income for overseas visitors to California in 2013 was $100,900, down from $102,600 in 2012 and up from $96,500 in 2011. During 2013 visitors from Japan ($135,100), the U.K. ($131,400), and Australia ($125,400) reported the highest annual average income. Visitors from India ($53,500), China ($63,400), and Mexico (air) ($65,200) reported the lowest annual household income. COUNTRY OF RESIDENCE OF VISITORS ANNUAL HOUSEHOLD INCOME* TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) ESTIMATED TRAVELERS 6,609,000 652,000 421,000 389,000 157,000 553,000 818,000 240,000 536,000 389,000 206,000 515,000 (NUMBER OF RESPONDENTS) (4,239) (333) (218) (156) (68)* (236) (324) (136) (792) (257) (109) (73)* Under $20,000 14.6% 2.6% 14.9% 19.2% 10.4% 5.6% 19.3% 39.5% 4.5% 18.0% 25.4% 42.4% $20,000 - $59,999 27.7 18.7 24.4 29.8 30.9 21.0 44.5 36.5 14.7 33.1 29.8 24.5 $60,000 - $99,999 21.9 32.1 19.6 28.2 30.6 23.3 18.5 11.0 24.9 29.7 7.1 8.7 $100,000 - $139,999 13.6 17.3 13.8 12.5 9.7 14.0 8.6 3.0 23.6 7.9 9.0 12.6 $140,000 - $179,999 7.4 7.3 9.3 3.2 3.2 12.4 5.0 1.6 9.6 2.8 13.3 3.4 $180,000 and over 14.8 22.0 18.2 7.0 15.1 23.9 4.1 8.5 22.8 8.4 15.6 8.3 TOTAL 100% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Average Annual Income $100,900 $131,400 $104,000 $75,300 $102,900 $125,400 $63,400 $53,500 $135,100 $78,200 $110,500 $65,200 Median Annual Income $72,000 $96,600 $81,400 $61,600 $66,300 $100,000 $47,700 $25,600 $101,500 $56,400 $50,000 $32,200 *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, 2013. CIC Research, Inc., and Visit California. 35

Figure 14 TOTAL NIGHTS IN THE U.S. OVERSEAS VISITORS TO CALIFORNIA / U.S. (2013) 1 to 3 6.2% 11.7% 4 to 7 20.0% 31.6% 8 to 14 30.3% 29.6% 15 to 21 12.9% 21.1% 22 to 28 29 to 35 36 + 7.3% 3.7% 5.2% 3.1% 10.0% 7.3% California Visitors Median = 14 Nights in U.S. Avg. = 23 Nights in U.S. U.S. Visitors Median = 10 Nights in U.S. Avg. = 20 Nights in U.S. Source: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013 CIC Research, Inc. 36

Table 18 NIGHTS AWAY FROM HOME / FIRST INTERNATIONAL TRIP OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2013) Overseas visitors to California in 2013 stayed an average of 23 nights in the U.S. and 14 nights in California (up from 23 nights and 11 nights in 2012). Nationalities varied in their average length of U.S. trip. Similar to results from 2012, visitors from Japan and Mexico (air) spent the least amount of time in the U.S. (10 nights and 15 nights respectively), while visitors from Japan and South Korea spent the least amount of time in California (4 nights and 5 nights respectively). Visitors from India spent the most time in the U.S. (38 nights), as well as in California (21 nights). More than one-quarter (28%) of overseas visitors to California were on their first international trip. Visitors from China (51%) followed by visitors from Australia (44%) and South Korea (41%) had the highest proportion traveling internationally for the first time. COUNTRY OF RESIDENCE OF VISITORS NIGHTS IN U.S. TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) ESTIMATED TRAVELERS 6,609,000 652,000 421,000 389,000 157,000 553,000 818,000 240,000 536,000 389,000 206,000 515,000 (Number of Respondents) (6,700) (586) (458) (284) (148) (365) (464) (225) (1,126) (369) (178) (117) Average No. Nights 22.5 16.0 26.4 22.0 16.8 24.9 25.0 38.3 10.4 21.4 25.3 14.8 Median No. Nights 14.0 14.0 17.0 15.0 14.0 20.0 12.0 20.0 5.0 9.0 16.0 10.0 NIGHTS IN CALIFORNIA (Number of Respondents) (5,792) (522) (386) (255) (131) (339) (377) (175) (1,036) (311) (161) (87)* Average Nts. in Dest. 12.2 10.3 11.3 9.2 10.4 10.8 14.4 20.7 8.5 10.0 15.0 7.4 Median Nts. in Dest. 7.0 8.0 7.0 7.0 6.0 6.0 6.0 9.0 4.0 5.0 9.0 6.0 FIRST INTERNATIONAL TRIP (Number of Respondents) (5,920) (530) (397) (257) (130) (331) (395) (201) (999) (318) (163) (97)* Yes 27.9% 14.5% 24.8% 33.5% 23.6% 44.4% 51.2% 26.7% 9.5% 41.1% 22.5% 19.7% No 72.1 85.5 75.2 66.5 76.4 55.6 48.8 73.3 90.5 58.9 77.5 80.3 *Caution - Small sample size. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013. CIC Research, Inc., and Visit California. 37

Figure 15 PORT OF ENTRY OF OVERSEAS VISITORS OVERSEAS VISITORS TO CALIFORNIA (2013) Los Angeles, CA San Francisco, CA New York, NY Other Chicago, IL Miami, FL Las Vegas, NV Atlanta, GA Seattle, WA Newark, NJ Dallas/Ft. Worth, TX 5.3% 6.9% 3.1% 3.5% 1.9% 1.5% 1.5% 1.9% 1.0% 25.9% 43.3% Source: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013 CIC Research, Inc. 38

Table 19 PORT OF ENTRY OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2013) A high ratio of California ports of entry is expected for overseas visitors to the State. California ports of entry in 2013 (69%) were reported either through Los Angeles (43%) or San Francisco (26%). These results were the same as in 2012 (69%) and similar to 2011 (67%). PORT OF ENTRY* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 6,609,000 652,000 421,000 389,000 157,000 553,000 818,000 240,000 536,000 389,000 206,000 515,000 (Number of Respondents) (6,744) (591) (462) (285) (149) (365) (465) (231) (1,127) (369) (179) (121) Atlanta, GA 1.5% 0.9% 3.6% 1.6% 1.4% - - 1.3% - - 12.0% 0.6% Chicago, IL 3.1 2.2 8.2 1.4 4.5 0.4% 3.3% 9.8 0.9% 0.2% 2.8 0.4 Dallas/Ft. Worth, TX 1.0 0.3 0.6 0.9-0.6 - - 0.5-13.6 2.7 Detroit, MI 0.8 0.3-3.2 2.1-2.0 - - 0.4 4.8 - Honolulu, HI 1.3 0.4 0.5 - - 2.7 3.7-4.0 0.8 - - Houston, TX 0.9 0.5 0.7 - - 0.1-0.4 0.1-6.2 1.5 Las Vegas, NV 1.9 9.2 3.9 2.6 2.1-0.3-0.2 1.3 5.1 - Los Angeles, CA 43.3 32.9 32.4 45.0 37.8 80.2 46.7 21.4 45.2 47.5 18.8 69.1 Miami, FL 3.5 1.5 1.7 4.6 2.0 0.4 0.1 0.5 - - 18.3 - New York, NY 5.3 4.9 4.8 6.7 13.4 2.9 2.7 4.9 1.5 1.1 9.2 - Newark, NJ 1.9 2.6 3.2 1.2 - - 0.6 8.4 0.2-0.7 0.4 Orlando, FL 0.1 0.5 0.1 - - - - - - - - - San Francisco, CA 25.9 28.9 29.1 25.1 25.7 11.9 28.2 44.7 33.2 30.6 2.9 18.7 Seattle, WA 1.5 1.5 1.3 1.8 0.9 0.3 2.5 4.2 2.2 2.8-0.1 Washington, DC 1.3 1.8 1.9 1.8 0.6-1.8-0.1-1.7 0.4 Other 6.9 11.7 8.2 4.1 9.4 0.5 8.1 4.5 12.0 15.3 3.8 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% 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, 2013. CIC Research, Inc., and Visit California. 39

Figure 16 OVERNIGHT ACCOMMODATIONS OVERSEAS VISITORS TO CALIFORNIA / U.S. (2013) 76.4% 78.4% California Visitors U.S. Visitors 27.0% 29.9% 5.7% 4.2% Hotel / Motel Private Home Other Source: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013 CIC Research, Inc. 40

Table 20 OVERNIGHT ACCOMMODATIONS OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2013) Approximately three-fourths (76%) of California visitors chose to stay in a hotel/motel during their stay this year, compared with 78% in 2012. Visitors from Japan and Australia (88% and 86% respectively), followed by France and Brazil (84% and 81% respectively) reported the highest use of hotels/ motels. Visitors from Mexico (air) reported the lowest hotel/motel usage (59%). The highest use of private homes was found among visitors from Mexico (air) (44%), followed by India (39%). COUNTRY OF RESIDENCE OF VISITORS TYPE OF ACCOMMODATIONS* TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) ESTIMATED TRAVELERS 6,609,000 652,000 421,000 389,000 157,000 553,000 818,000 240,000 536,000 389,000 206,000 515,000 (Number of Respondents) (5,350) (504) (361) (237) (120) (317) (306) (162) (935) (289) (157) (87)** Hotel / Motel 76.4% 78.5% 70.5% 84.0% 77.0% 86.1% 68.6% 66.1% 87.9% 71.3% 80.9% 59.3% Average Nights in Dest. 8.1 7.9 7.7 6.9 5.8 8.8 9.2 12.2 7.3 5.3 10.9 6.3 Median Nights in Dest. 5.0 6.0 6.0 5.0 5.0 6.0 6.0 5.0 4.0 3.0 8.0 5.0 Private Home 27.0% 28.0% 30.8% 27.2% 23.0% 13.0% 24.2% 39.1% 14.6% 29.8% 25.1% 43.6% Average Nights in Dest. 20.0 12.2 15.5 12.4 23.4 18.3 24.0 33.1 13.0 19.2 23.7 9.6 Median Nights in Dest. 10.0 8.0 10.0 9.0 10.0 7.0 13.0 10.0 6.0 12.0 14.0 7.0 Other 5.7% 7.7% 12.1% 5.3% 8.4% 5.3% 12.6% 4.4% 2.7% 3.2% 1.7% 1.4% *Column percentages may not total to 100% due to multiple responses. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013. CIC Research, Inc., and Visit California. 41

Figure 17 TRANSPORTATION IN THE U.S. OVERSEAS VISITORS TO CALIFORNIA / U.S. (2013) 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 11.6% 10.2% 7.7% 6.7% 5.4% 2.9% 4.2% 4.2% 1.8% 0.9% 18.2% 18.2% 32.7% 33.3% 37.1% 31.3% 33.0% 32.3% 32.8% 34.8% California Visitors U.S. Visitors 43.0% 45.5% Source: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013 CIC Research, Inc. 42

Table 21 TRANSPORTATION IN THE U.S OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2013) Transportation in the U.S. used by visitors to California in 2013 was predominantly airlines (46%), rented autos (43%), company/private auto (37%), city subway/tram/bus (33%), and taxi/cab/limousines (33%). Visitors from Australia made the highest use of airlines (80%) as well as city subway/tram/bus (53%) and taxi/cab/limousines (58%) to travel around the U.S. Visitors to California from Germany and Brazil (63%, and 61% respectively) made the highest use of a rented auto, while the highest use of a company or private auto was among visitors from Mexico (air) (51%). 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 6,609,000 652,000 421,000 389,000 157,000 553,000 818,000 240,000 536,000 389,000 206,000 515,000 (Number of Respondents) (5,995) (532) (430) (262) (137) (331) (406) (194) (1,009) (328) (167) (91)** Air Travel btw. U.S. Cities 45.5% 31.8% 44.3% 32.1% 41.2% 79.6% 43.7% 49.6% 33.2% 32.5% 62.7% 21.7% Rented Auto 43.0 45.0 63.0 52.6 55.2 38.6 36.2 21.8 31.5 36.1 60.6 34.6 Company or Private Auto 37.1 39.3 29.7 27.0 30.5 41.1 36.8 27.0 31.6 32.8 41.0 51.3 City Subway/Tram/Bus 33.0 33.6 42.3 37.6 32.6 53.2 25.3 21.8 26.6 20.8 38.6 13.6 Taxi/Cab/Limousine 32.8 40.2 23.9 23.6 26.6 57.5 18.0 50.0 47.7 22.0 35.4 22.2 Bus between Cities 18.2 11.2 14.4 26.6 19.9 26.0 19.6 25.3 18.1 26.0 12.9 18.5 Ferry/River Taxi/Short Scenic Cruise SOUTH KOREA BRAZIL 11.6 14.8 14.1 13.8 12.8 28.8 6.2 9.0 3.5 3.4 8.8 6.3 Railroad between Cities 7.7 9.0 8.1 3.5 4.5 13.0 7.8 15.3 9.2 4.4 1.7 6.5 Rented Bicycle /Motorcycle/Moped Cruise Ship/River Boat 1+ Nights 5.4 5.3 5.3 7.9 8.8 6.1 3.9 2.4 3.3 1.3 11.7 2.5 4.2 7.3 1.9 3.0 4.4 10.9 4.5 1.6 0.6 1.4 1.2 2.4 Motor Home/Camper 1.8 4.0 5.8 1.4 0.3 0.8 0.1 4.2 0.3 1.2 0.9 2.0 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, 2013. CIC Research, Inc., and Visit California. 43

Figure 18 PAYMENT METHOD FOR TRIP EXPENSES OVERSEAS VISITORS TO CALIFORNIA / U.S. (2013) Purchases Using Credit Card 41.5% 44.1% Cash from Home/Travelers Checks 26.0% 31.3% Cash Adv./Wdrawal Using Credit Card Cash Adv./Wdrawal Using Debit Card 6.6% 5.7% 17.5% 15.8% California Visitors U.S. Visitors Purchases Using Debit Card 5.7% 5.7% Source: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013 CIC Research, Inc. 44

Table 22 PAYMENT METHODS FOR TRIP EXPENSES OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2013) 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 2012, purchases in 2013 using a credit card (44%) followed by cash from home/travelers checks (26%) 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 2013 from China (56%) followed by visitors from Italy (55%), Germany and Japan (54% each) 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 South Korea (44%). Visitors from South Korea, France, and Germany had the highest propensity to use a cash advance/withdrawal using a credit card (24%, 23% and 23% respectively), while visitors from Australia (16%) and India (15%) had the highest propensity to use a cash advance/withdrawal using a debit card. Visitors from Australia and Brazil were the most likely to make purchases using a debit card (15% each). 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 6,609,000 652,000 421,000 389,000 157,000 553,000 818,000 240,000 536,000 389,000 206,000 515,000 (Number of Respondents) (4,962) (415) (321) (229) (100) (268) (322) (134) (968) (279) (116) (83)** Purchases Using Credit Card 44.1% 37.4% 54.4% 35.1% 55.4% 34.5% 56.0% 41.4% 53.8% 28.9% 44.3% 49.3% Cash from Home/Travelers Checks 26.0 24.8 15.2 34.9 21.9 19.1 24.2 22.8 25.7 44.1 22.7 18.7 Cash Adv./Wdrawal Using Credit Card 17.5 15.0 22.9 22.6 15.2 16.0 16.3 14.5 17.9 24.0 10.4 16.2 Cash Adv./Wdrawal Using Debit Card 6.6 14.2 4.3 3.6 4.7 15.6 0.9 15.2 1.7 2.3 7.9 8.3 Purchases Using Debit Card 5.7 8.5 3.1 3.9 2.8 14.8 2.7 6.1 0.9 0.7 14.7 7.5 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, 2013. CIC Research, Inc., and Visit California. 45

Figure 19 TRIP EXPENDITURES OVERSEAS VISITORS TO CALIFORNIA / U.S. (2013) California Visitors Expenditure in U.S. $1,732 $2,270 U.S. Visitors International Airfare $1,558 $1,885 Inclusive Tour Price $2,365 $3,670 Total Trip $3,435 $4,415 Source: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013 CIC Research, Inc. 46

Table 23 TRIP EXPENDITURES OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2013) Overseas visitors to California in 2013 spent an estimated $1,940 per capita in California. Total spending in California by the 6.6 million overseas visitors in 2013 was an estimated $12.8 billion in the state out of their total spending in the U.S. of $23.6 billion. Visitors from China reported the highest average spending in California of $2,377 per visitor. The lowest average spending $994 was reported by visitors to California from Mexico. COUNTRY OF RESIDENCE OF VISITORS VISITOR SPENDING* TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN TOTAL VISITORS TO THE U.S. 32,038,000 3,835,268 1,916,471 1,504,562 838,883 1,205,060 1,806,553 859,156 3,730,287 1,359,924 2,060,291 2,218,000 Total Spending in the U.S. ($ Mil.) $106,772 $9,212 $5,059 $4,373 $2,886 $5,017 $7,643 $3,735 $11,612 $4,685 $7,038 $3,168 Spending in the U.S. per Visitor $3,333 $2,402 $2,640 $2,907 $3,440 $4,163 $4,231 $4,347 $3,113 $3,445 $3,416 $1,428 SOUTH KOREA BRAZIL MEXICO (AIR) CALIFORNIA VISITORS SPENDING AND NIGHTS ESTIMATED VISITORS TO CA 6,609,000 652,000 421,000 389,000 157,000 553,000 818,000 240,000 536,000 389,000 206,000 515,000 (Number of Respondents) (2,736) (264) (180) (117) (64)** (173) (125) (60)** (487) (156) (70)** (48)** Total Spending in CA ($ Mil.) $12,820 $867 $703 $673 $312 $990 $1,948 $446 $1,052 $909 $435 $512 Est. Spending in CA per Visitor $1,940 $1,329 $1,670 $1,734 $1,987 $1,791 $2,377 $1,859 $1,964 $2,335 $2,106 $994 Est. Spending in CA per Day $159 $129 $148 $189 $191 $166 $165 $90 $231 $234 $140 $134 Average Nights in CA 12.2 10.3 11.3 9.2 10.4 10.8 14.4 20.7 8.5 10.0 15.0 7.4 Median Nights in CA 7.0 8.0 7.0 7.0 6.0 6.0 6.0 9.0 4.0 5.0 9.0 6.0 SPENDING IN THE U.S. BY VISITORS TO CA* Total Spending in U.S. ($ Mil.) $23,643 $1,346 $1,643 $1,613 $504 $2,283 $3,376 $826 $1,288 $1,944 $732 $1,024 Spending in U.S. per CA Visitor $3,577 $2,065 $3,902 $4,148 $3,210 $4,129 $4,127 $3,440 $2,403 $4,997 $3,553 $1,988 Nights in U.S.-- CA Visitors 22.5 16.0 26.4 22.0 16.8 24.9 25.0 38.3 10.4 21.4 25.3 14.8 SPENDING IN THE U.S. BY CATEGORY (%) Lodging in U.S. 29.1% 35.5% 33.2% 23.3% 36.4% 26.1% 19.2% 44.7% 48.4% 23.9% 27.9% 31.7% Air Transport in U.S. 6.9% 3.0% 6.0% 6.5% 4.3% 8.8% 11.8% 7.0% 4.3% 5.0% 3.6% 9.3% Entertainment 12.2% 13.9% 13.7% 16.4% 12.6% 16.9% 8.6% 8.7% 7.1% 12.2% 13.4% 9.8% Food and Beverages 17.8% 23.9% 21.3% 24.3% 24.7% 21.6% 11.3% 13.9% 17.8% 19.2% 12.9% 16.8% Ground Trans. in U.S. 5.6% 6.1% 6.6% 6.3% 5.4% 3.8% 7.2% 10.1% 5.7% 6.9% 7.5% 3.4% Gifts and Souvenirs 21.9% 14.0% 13.9% 18.3% 13.4% 19.7% 37.2% 12.8% 13.2% 23.4% 27.8% 23.4% Other 6.3% 3.5% 4.8% 5.1% 3.0% 3.0% 4.7% 2.7% 3.3% 9.5% 6.9% 4.9% * Spending estimates were based on SIAT survey data and revised by Tourism Economics for Visit California, August 2013. **Caution - Small sample size. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013. CIC Research, Inc. and Tourism Economics 47

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Table 24 EXPENDITURES OVERSEAS VISITORS WHO REPORTED ONLY CALIFORNIA DESTINATIONS* (2013) Almost half (45%) of overseas visitors to California in 2013 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 $2,177 per capita in California. This was higher than the average spending in California of $1,940 reported for All Overseas visitors to California. As should be expected the California-only visitors reported longer lengths of stay in California (16.5 days v. 12.2 days). Average daily spending by California only visitors was $132 per day, which was lower than the average daily spending of $159 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) (1,277) (2,736) SPENDING IN CALIFORNIA (est.)** $2,177 $1,940 PER DAY $132 $159 SPENDING IN THE U.S. BY VISITORS TO CALIFORNIA (%) AIR TRANSPORT IN U.S. 4% 29% GROUND TRANSPORT IN U.S. 5% 7% LODGING 35% 12% FOOD, BEVERAGES 19% 18% GIFTS, SOUVENIRS 22% 6% ENTERTAINMENT 10% 22% OTHER 6% 6% AVERAGE NIGHTS IN CALIFORNIA 16.5 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 2013. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013. CIC Research, Inc. and Tourism Economics. 49

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OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA* (2013) * 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 (2013) UNITED STATES CALIFORNIA ESTIMATED ESTIMATED CALIFORNIA LEISURE 2012/2013 LEISURE 2012/2013 SHARE OF VISITORS PERCENT VISITORS PERCENT VISITORS FROM RESIDENCE OF VISITORS TO THE U.S. CHANGE TO CALIFORNIA CHANGE* THIS COUNTRY EUROPE 9,851,000 4.0% 1,789,000-5.3% 18.2% W. EUROPE 9,254,000 2.9% 1,688,000-5.3% 18.2% Austria 136,000-2.2% 31,000 10.7% 22.8% Belgium 190,000 9.2% 33,000 43.5% 17.4% Denmark 197,000-2.5% 55,000 19.6% 27.9% France 1,181,000 7.3% 317,000 7.8% 26.8% Germany 1,391,000 4.3% 311,000 2.6% 22.4% Ireland 255,000-3.4% 69,000 46.8% 27.1% Italy 613,000 2.3% 122,000-12.2% 19.9% Netherlands 444,000-2.6% 81,000-15.6% 18.2% Norway 197,000-1.5% 33,000 13.8% 16.8% Spain 483,000 9.5% 53,000-33.8% 11.0% Sweden 362,000 5.8% 64,000-4.5% 17.7% Switzerland 375,000 2.2% 86,000 2.4% 22.9% United Kingdom 3,118,000 1.9% 475,000-6.7% 15.2% E. EUROPE 565,000 24.2% 100,000 4.2% 17.7% CARIBBEAN 753,000-6.8% 7,000-12.5% 0.9% 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 2012/2013 LEISURE 2012/2013 SHARE OF VISITORS PERCENT VISITORS PERCENT VISITORS FROM RESIDENCE OF VISITORS TO THE U.S. CHANGE TO CALIFORNIA CHANGE* THIS COUNTRY SOUTH AMERICA 4,180,000 21.5% 347,000 45.2% 8.3% Argentina 582,000 10.0% 40,000-9.1% 6.9% Brazil 1,652,000 20.1% 160,000 48.1% 9.7% Chile 165,000 18.7% 17,000 6.3% 10.3% Colombia 551,000 19.5% 43,000 152.9% 7.8% Ecuador 229,000 30.1% 4,000-55.6% 1.7% Peru 183,000 29.8% 12,000-20.0% 6.6% Venezuela 705,000 40.2% 68,000 223.8% 9.6% Other South America 113,000-1.7% 3,000-66.7% 2.7% CENTRAL AMERICA (Excluding Mexico) 581,000 4.5% 45,000-27.4% 7.7% Costa Rica 135,000 14.4% 3,000-40.0% 2.2% Guatemala 137,000 5.4% 23,000-32.4% 16.8% Panama 103,000 1.0% 3,000-66.7% 2.9% Other Central America 206,000 0.0% 16,000 14.3% 7.8% AFRICA 260,000 14.5% 20,000 0.0% 7.7% South Africa, Rep. of 53,000 8.2% 11,000 0.0% 20.8% Other Africa 207,000 16.3% 9,000-18.2% 4.3% OCEANIA 1,242,000 9.3% 610,000 8.5% 49.1% Australia 1,054,000 9.1% 487,000 5.0% 46.2% New Zealand 174,000 10.8% 100,000 16.3% 57.5% 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 2012/2013 LEISURE 2012/2013 SHARE OF VISITORS PERCENT VISITORS PERCENT VISITORS FROM RESIDENCE OF VISITORS TO THE U.S. CHANGE TO CALIFORNIA CHANGE* THIS COUNTRY ASIA 6,032,000 7.8% 1,216,000 14.6% 20.2% Hong Kong 66,000-12.0% 34,000 17.2% 51.5% India 363,000 24.3% 102,000 37.8% 28.1% Indonesia 52,000 15.6% 24,000 0.0% 46.2% Japan 2,884,000-3.5% 209,000-24.5% 7.2% Korea, South 957,000 19.6% 250,000 19.0% 26.1% Malaysia 45,000 25.0% 26,000 4.0% 57.8% People's Republic of China 956,000 30.2% 485,000 37.4% 50.7% Philippines 155,000 55.0% 81,000 107.7% 52.3% Republic of China (Taiwan) 243,000 39.7% 107,000 46.6% 44.0% Singapore 63,000-13.7% 32,000-20.0% 50.8% Thailand 44,000 2.3% 20,000-20.0% 45.5% MIDDLE EAST 671,000 33.1% 161,000 71.3% 24.0% Israel 204,000 25.2% 38,000 58.3% 18.6% Saudi Arabia 150,000 45.6% 39,000 116.7% 26.0% Turkey 98,000 44.1% 24,000 100.0% 24.5% Other Middle East 219,000 28.8% 60,000 50.0% 27.4% Total Overseas Leisure Visitors 23,675,000 8.5% 4,508,000 7.6% 19.0% (Number of Respondents) (24,912) (3,823) Mexico (Air Travelers Only) 1,519,000 8.3% 391,000 1.8% 25.7% 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, 2013. CIC Research, Inc., and Visit California. 57

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Table 26 MAIN DESTINATION BY STATE OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2013) California was the main U.S. state destination for almost three-quarters (73%) of overseas leisure travelers to California in 2013, similar to the proportion from previous years. The highest proportion of leisure travelers, with California as their main destination, was from Mexico (air) (87%), followed by Japan (86%), and France (80%). Australia once again reported the lowest proportion of leisure travelers with California as their main destination (34%). This result was down from 48% in 2012. COUNTRY OF RESIDENCE OF VISITORS MAIN DESTINATION* TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) ESTIMATED TRAVELERS 4,508,000 475,000 311,000 317,000 122,000 487,000 485,000 102,000 209,000 250,000 160,000 391,000 (Number of Respondents) (2,561) (312) (193) (136) (75)** (146) (102) (59)** (277) (141) (88)** (71)** California 73.1% 75.3% 74.2% 79.8% 70.1% 34.1% 72.4% 70.8% 85.7% 83.7% 70.2% 87.0% New York 6.3 3.1 2.8 7.9 12.6 25.1 2.8 6.3 0.6 6.2 4.9 4.6 Nevada 5.4 8.9 10.5 1.7 0.8 4.4 0.5 1.1 2.0 2.3 15.8 3.1 Hawaiian Islands 3.0 2.7 3.0 4.4 4.9 9.8 0.4-7.3 0.7 2.2 - Florida 1.4 1.3 1.2 1.4 3.8 1.6 1.1-0.4-3.6 - *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, 2013 CIC Research, Inc. and the California Travel and Tourism Commission. 59

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Table 27 MAIN DESTINATION BY STATE OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2013) The most common Metropolitan Statistical Areas (MSAs) visited by overseas leisure travelers to California in 2013 were Los Angeles Long Beach (68%) and San Francisco (53%), followed by San Diego (14%), Anaheim (8%), Salinas (6%), and Riverside-San Bernardino (4%). MAIN DESTINATION* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 4,508,000 475,000 311,000 317,000 122,000 487,000 485,000 102,000 209,000 250,000 160,000 391,000 (Number of Respondents) (3,700) (378) (293) (214) (104) (297) (240) (78) (368) (198) (109) (69) Los Angeles-Long Beach MSA 3,047,000 286,000 190,000 230,000 92,000 353,000 399,000 52,000 103,000 183,000 121,000 192,000 (Los Angeles County) 67.6% 60.2% 61.1% 72.5% 75.1% 72.4% 82.3% 51.3% 49.5% 73.2% 75.5% 49.2% SOUTH KOREA BRAZIL MEXICO (AIR) San Francisco MSA 2,376,000 247,000 200,000 237,000 81,000 223,000 248,000 41,000 72,000 124,000 100,000 69,000 (San Francisco-Marin-San Mateo Counties) 52.7% 52.1% 64.2% 74.8% 66.3% 45.7% 51.1% 39.8% 34.3% 49.7% 62.3% 17.6% San Diego MSA 618,000 85,000 59,000 45,000 9,000 59,000 52,000 16,000 27,000 10,000 24,000 46,000 (San Diego County) 13.7% 17.9% 19.1% 14.3% 7.6% 12.2% 10.7% 15.9% 13.0% 3.9% 15.2% 11.8% Anaheim-Santa Ana MSA 374,000 47,000 16,000 9,000 2,000 104,000 5,000 9,000 35,000 24,000 11,000 93,000 (Orange County) 8.3% 9.8% 5.0% 2.8% 1.7% 21.4% 1.0% 8.5% 16.7% 9.4% 7.1% 23.9% Salinas MSA 248,000 61,000 21,000 25,000 10,000 11,000 20,000-3,000 1,000 17,000 22,000 (Monterey County) 5.5% 12.9% 6.6% 7.8% 8.6% 2.3% 4.1% - 1.5% 0.3% 10.8% 5.7% Riverside-San Bernardino MSA 194,000 40,000 26,000 7,000 2,000 7,000 7,000 3,000 5,000 4,000 9,000 30,000 (Riverside-San Bernardino Counties) 4.3% 8.5% 8.3% 2.2% 1.8% 1.5% 1.4% 3.4% 2.2% 1.4% 5.6% 7.6% 61

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Table 27 (Cont.) COUNTRY OF RESIDENCE OF VISITORS MAIN DESTINATION* TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) ESTIMATED TRAVELERS 4,508,000 475,000 311,000 317,000 122,000 487,000 485,000 102,000 209,000 250,000 160,000 391,000 (Number of Respondents) (3,700) (378) (293) (214) (104) (297) (240) (78) (368) (198) (109) (69) Santa Barbara-Lompoc MSA 180,000 31,000 13,000 16,000 12,000 8,000 11,000 <1,000 4,000 1,000 18,000 9,000 (Santa Barbara County) 4.0% 6.6% 4.2% 4.9% 9.8% 1.7% 2.3% 0.6% 1.8% 0.3% 11.0% 2.2% Sacramento MSA 149,000 15,000 16,000 10,000 3,000 2,000 10,000 7,000 5,000 7,000 1,000 - (El Dorado-Placer- Sacramento-Yolo Counties) 3.3% 3.1% 5.1% 3.2% 2.7% 0.5% 2.1% 7.0% 2.6% 2.7% 0.8% - San Jose MSA 144,000 17,000 12,000 6,000 5,000 1,000 16,000 25,000 9,000 4,000 2,000 35,000 (Santa Clara County) 3.2% 3.6% 3.8% 2.0% 3.8% 0.2% 3.2% 24.3% 4.5% 1.6% 1.4% 9.0% *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, 2013. CIC Research, Inc., and Visit California. 63

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Table 28 TRAVEL COMPANIONS OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2013) The highest proportion of Overseas and Mexican leisure visitors to California were traveling alone (47%), followed by 33% traveling with a spouse/partner and 20% traveling with family/relatives. Visitors from India and China (56% and 51% respectively) had the highest proportion of respondents who were traveling alone, while visitors from Brazil and Italy (52% and 48% respectively) had the highest proportion of respondents who were traveling with a spouse/partner. Visitors from Mexico (air) (33%) had the highest proportion of respondents who were traveling with family/relatives. COUNTRY OF RESIDENCE OF VISITORS TRAVEL COMPANIONS* TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) ESTIMATED TRAVELERS 4,508,000 475,000 311,000 317,000 122,000 487,000 485,000 102,000 209,000 250,000 160,000 391,000 (Number of Respondents) (3,801) (395) (313) (217) (105) (304) (244) (83)** (374) (199) (109) (76)** Traveling Alone 46.9% 48.0% 39.8% 40.1% 35.0% 38.8% 50.6% 55.8% 48.4% 49.3% 37.4% 44.8% Spouse/Partner 32.6 38.1 38.8 33.7 48.4 44.1 25.0 29.2 26.1 23.0 51.9 27.5 Family/Relatives 20.4 14.9 15.2 25.4 16.5 17.0 25.8 19.9 20.1 26.8 28.2 33.2 Friends 7.9 6.9 13.2 10.7 6.8 9.7 7.9 0.4 8.4 7.5 0.5 1.5 Tour Group 1.0-1.1 4.9 0.1-2.3-1.3 2.0-1.8 Business Associates 0.2 - - 1.2 - - 0.6-0.9 - - - *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, 2013. CIC Research, Inc., and Visit California. 65

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Table 29 MAIN PURPOSE OF TRIP OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2013) Overseas leisure visitors to California reported the main purpose of their trip as predominantly vacation/holidays (76%) and, to a lesser extent, visiting friends/relatives (24%). Leisure visitors from Australia (90%) and Italy (89%), followed by leisure visitors from Brazil (84%) had the highest proportion of visitors whose main purpose was vacation/holidays, while leisure visitors from Mexico (air) (34%) followed by Japan and South Korea (33%, 32% respectively) had the highest proportion of visitors whose main purpose was visiting friends/relatives. COUNTRY OF RESIDENCE OF VISITORS MAIN PURPOSE OF TRIP TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) ESTIMATED TRAVELERS 4,508,000 475,000 311,000 317,000 122,000 487,000 485,000 102,000 209,000 250,000 160,000 391,000 (Number of Respondents) (3,823) (396) (313) (217) (106) (304) (248) (83)* (375) (200) (111) (76)* Vacation/ Holidays 75.6% 77.8% 77.5% 87.0% 89.3% 90.2% 74.8% 29.7% 67.2% 68.2% 83.9% 65.9% Visit Friends/Relatives 24.4 22.2 22.5 13.0 10.7 9.8 25.2 70.3 32.8 31.8 16.1 34.1 *Caution-Small sample size Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013. CIC Research, Inc., and Visit California. 67

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Table 30 PURPOSE OF TRIP OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2013) More than eight in ten (85%) overseas leisure travelers to California reported they were on vacation/holiday, while 40% reported visiting friends or relatives. This is similar to results from previous years. Leisure travelers from Australia, Italy, and France (98%, 93%, and 91% respectively) recorded the highest proportion of travelers on vacation/holiday in 2013. On the other hand, only 53% of leisure visitors from India reported they were on vacation/holiday. A large proportion of visitors from India (74%) reported coming to California to visit friends and relatives, while only 22% of travelers from Italy reported this purpose. COUNTRY OF RESIDENCE OF VISITORS PURPOSE OF TRIP* TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) ESTIMATED TRAVELERS 4,508,000 475,000 311,000 317,000 122,000 487,000 485,000 102,000 209,000 250,000 160,000 391,000 (Number of Respondents) (3,823) (396) (313) (217) (106) (304) (248) (83)** (375) (200) (111) (76)** Vacation/ Holidays 85.2% 85.8% 87.8% 91.0% 93.2% 97.8% 81.3% 52.6% 79.3% 77.8% 89.4% 72.5% Visit Friends/Relatives 39.5 39.2 38.2 26.1 22.2 27.7 35.6 74.4 43.5 46.2 29.9 47.7 Education 2.2-2.3 3.7 4.9 1.3 4.8-1.1 2.8 2.8 - Business 1.3 0.4 0.6-4.1 1.0 3.3-3.5 0.3 1.3 3.6 Attend Convention 1.1 0.7 1.2 0.7 1.6 0.8 1.4-1.1 1.2 0.5 - Other 2.0 0.6 0.7 2.8 4.7 4.0 3.5 0.0 0.6 0.2 3.1 0.0 *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, 2013. CIC Research, Inc., and Visit California. 69

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Table 31 LEISURE-RECREATION ACTIVITIES OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2013) Overseas leisure visitors reported a greater participation rate in almost all activities, compared with all overseas visitors to California (Table 8). Sightseeing (89%) and shopping (89%) were the most common leisure and recreation activities of overseas leisure visitors to California in 2013. These results are similar to those mentioned in 2012. Categories listed in prior years were different, thus no comparison can be made with results prior to 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 4,508,000 475,000 311,000 317,000 122,000 487,000 485,000 102,000 209,000 250,000 160,000 391,000 (Number of Respondents) (3,385) (360) (281) (191) (89)** (284) (212) (65)** (319) (178) (102) (61)** Sightseeing 89.4% 92.9% 90.6% 88.7% 72.5% 95.5% 83.6% 94.1% 87.8% 90.3% 93.3% 76.3% Shopping 89.3 90.2 93.7 88.5 77.2 95.9 87.5 90.4 83.7 78.9 93.0 93.1 National Parks/Monuments 57.1 63.3 70.8 69.9 62.4 69.3 48.9 49.6 32.6 44.0 54.9 32.1 Small Towns/Countryside 46.7 53.8 66.5 43.7 47.1 51.5 48.9 46.0 19.3 16.4 35.5 27.9 Amusement/Theme Parks 44.5 39.5 33.7 41.8 28.9 59.8 52.4 45.0 29.7 54.3 53.7 36.1 Experience Fine Dining 44.2 43.3 34.7 49.6 27.3 56.3 55.1 48.9 40.5 25.4 35.9 54.4 Historical Locations 42.0 43.9 59.9 44.6 42.5 59.5 38.4 27.9 23.2 20.0 41.5 31.5 Guided Tour(s) 38.7 49.3 33.8 33.5 43.1 68.2 31.8 29.1 25.8 26.2 25.6 14.7 Art Galleries/Museums 32.9 36.8 32.0 24.5 29.9 45.7 44.9 47.0 17.7 24.6 40.5 30.6 Casino/Gamble 30.3 27.6 30.3 34.3 34.0 48.6 27.2 10.8 12.3 27.2 33.8 11.5 Cultural/Ethnic Heritage 23.6 25.9 29.4 25.1 22.9 30.5 26.8 18.5 10.5 21.6 16.7 19.1 Concert/Play/Musical 23.4 16.8 21.9 11.0 9.1 47.9 14.7 20.6 10.6 29.1 47.6 22.2 Nightclubbing/Dancing 15.3 15.2 15.5 8.7 24.4 27.6 3.7 9.9 6.0 3.1 39.8 12.9 Sporting Event 15.8 19.4 15.1 9.2 11.1 31.3 8.5 17.9 8.3 11.1 16.8 14.2 American Indian 12.3 8.1 18.2 23.0 21.1 19.0 10.9 18.7 3.1 12.0 5.6 3.4 Camping/Hiking 9.8 12.8 21.2 13.8 4.8 9.6 7.8 2.0 2.8 4.3 2.4 0.8 Water Sports 8.3 11.0 9.7 9.5 6.3 11.1 4.7 6.7 6.2 3.5 4.3 0.8 Environmental/Eco. 5.2 3.0 7.4 4.7 8.0 6.6 9.4 15.4 0.8 3.4 3.1 3.1 Golfing/Tennis 4.4 4.2 0.6 4.5 4.7 6.4 3.5 16.1 5.6 7.0 8.6 3.1 Snow Sports 2.8 1.2-1.7-7.6 0.8 3.5-1.0 2.9 0.4 Hunting/Fishing 1.2 2.2 0.9 1.2-1.2 1.5 1.6 0.3 0.3-1.1 *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, 2013. CIC Research, Inc., and Visit California. 71

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Table 32 ADVANCE TRIP DECISION OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2013) Overseas leisure visitors to California reported a median advance trip decision period of 90 days, 25 days longer than the 65 days for all overseas visitors to California (Table 9). The median advance airline ticket reservation period for leisure visitors was 60 days in 2013, (similar to previous years) compared with a median of 47 days for all overseas visitors to California (Table 10). In 2013 leisure visitors from South Korea (45 days), followed by Mexico (air), China 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 and 60 days respectively). 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 4,508,000 475,000 311,000 317,000 122,000 487,000 485,000 102,000 209,000 250,000 160,000 391,000 (Number of Respondents) (3,662) (381) (303) (209) (105) (297) (232) (83)** (359) (192) (109) (72)** 14 Days or Less 6.7% 6.1% 6.6% 2.5% 4.9% 3.0% 9.3% 6.5% 6.5% 6.5% 1.4% 12.4% 15-60 Days 31.8 21.1 14.0 22.5 23.8 12.7 56.6 39.2 43.4 62.8 27.6 53.6 61-120 Days 27.1 26.3 31.4 31.4 24.9 26.4 25.6 35.5 34.7 18.4 39.5 12.1 121-180 Days 15.2 17.2 19.7 14.5 25.1 23.0 5.1 14.0 11.3 6.2 15.0 11.5 181 Days or More 19.1 29.3 28.3 29.1 21.3 34.8 3.2 4.9 3.9 6.1 16.3 10.4 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 125.3 152.3 152.5 154.6 137.6 186.3 65.0 91.4 83.9 70.9 121.7 83.2 Median No. of Days 90.0 120.0 120.0 120.0 120.0 180.0 60.0 70.0 60.0 45.0 90.0 60.0 ADVANCE AIRLINE RESERVATIONS* ESTIMATED TRAVELERS 4,508,000 475,000 311,000 317,000 122,000 487,000 485,000 102,000 209,000 250,000 160,000 391,000 (Number of Respondents) (3,493) (367) (295) (200) (101) (289) (215) (80)** (317) (188) (106) (72)** 14 Days or less 12.2% 10.9% 8.6% 5.4% 9.8% 9.0% 13.6% 13.6% 12.8% 26.7% 7.3% 22.2% 15-60 Days 39.2 24.1 21.4 35.7 34.1 19.8 69.8 35.9 50.3 54.2 39.1 57.8 61-120 Days 26.1 30.6 34.5 32.1 27.4 32.9 14.2 39.2 6.5 0.3 38.0 11.9 121-180 Days 12.8 16.8 17.7 13.0 20.4 22.9 0.9 9.0 8.5 5.1 14.0 3.9 181 Days or More 9.8 17.5 17.7 13.7 8.4 15.4 1.4 2.2 2.2 3.9 1.5 4.2 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% Mean No. of Days 88.6 118.5 121.6 103.3 94.0 122.3 43.9 69.9 65.9 45.9 82.8 49.9 Median No. of Days 60.0 90.0 95.0 90.0 90.0 120.0 30.0 65.0 60.0 30.0 90.0 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, 2013. 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 (2013) Travel agents booked 33% of airline ticket reservations for overseas leisure travelers to California in 2013, compared with 34% in 2012, and 47% in 2011. The proportion of travel agent air bookings ranged from a low of 21% for leisure travelers from the U.K., to a high of 62% for leisure travelers from Australia. Booking directly with the airline was the second most common method used by overseas leisure visitors to book air trips (31%). Use of this means was highest among leisure visitors from the U.K. (46%) and Mexico (air) (38%), and lowest among leisure visitors from India and Italy (17% and 21% respectively). An Internet booking service played a role in booking U.S. airline (27%) as well as lodging reservations (35%) 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 4,508,000 475,00 311,000 317,000 122,00 487,000 485,000 102,000 209,000 250,000 160,000 391,000 (Number of Respondents) (3,797) (394) (311) (217) (106) (303) (247) (83)*** (369) (200) (110) (75)*** Travel Agency Office 32.9% 21.3% 36.8% 23.3% 36.2% 62.1% 23.5% 56.0% 34.1% 23.3% 25.9% 23.4% Airline Directly 31.3 45.9 24.3 35.3 20.5 23.7 25.6 17.3 35.9 23.9 34.9 38.2 Internet Booking Srvc. 26.8 19.0 30.8 26.1 26.1 16.3 33.1 25.5 23.5 27.3 31.6 41.1 Tour Oper./Travel Club 10.0 14.3 7.7 10.2 24.4 3.5 15.9 3.4 7.8 21.9 8.6 2.8 Corporate Travel Dept. 4.2 4.0 4.7 3.6 0.9 2.8 6.6-0.4 5.3 4.2 2.0 Other/Don t Know 1.3 1.1 0.3 3.2 0.0 0.5 4.0 0.3 0.9 0.0 0.3 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% MEANS OF BOOKING LODGING** (Number of Respondents) (3,608) (388) (302) (201) (98)*** (293) (232) (77)*** (353) (188) (106) (71)*** Yes, Booked by: 70.2% 76.0% 71.2% 65.9% 69.5% 90.8% 77.3% 30.7% 68.7% 54.4% 73.7% 60.1% Internet Booking Srvc. 34.5% 32.2% 34.1% 32.3% 29.1% 42.0% 37.2% 16.7% 26.6% 27.2% 42.7% 28.0% Hotel/Motel Directly 19.6 31.7 24.4 19.5 10.7 28.4 9.4 8.6 12.1 12.2 24.7 31.2 Travel Agency Office 17.5 12.7 22.5 11.3 26.7 41.1 14.2 3.5 20.4 5.0 20.3 1.0 Tour Oper./Travel Club 5.9 9.9 8.2 5.9 11.0 2.7 11.3 3.5 8.4 7.7 1.8 2.5 Corporate Travel Dept. 2.2 0.8 1.8 2.2-1.9 5.8-0.7 0.5 0.6 - Airline Staff 0.9 2.8 - - - 0.7 1.8 0.3 1.3 0.4 - - Other 2.0 1.5 1.1 2.5 2.3 1.5 6.1 2.7 1.2 2.2 0.6 - No 29.8% 24.0% 28.8% 34.1% 30.5% 9.2% 22.7% 69.3% 31.3% 45.6% 26.3% 39.9% *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, 2013. 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 (2013) 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 (36%), personal recommendation (30%) and travel agency office (28%). Use of a travel guide was the next most frequently mentioned trip information source among leisure travelers to California (18%). Results are similar to those from 2012. However, 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. (60%) followed by Brazil (48%), and lowest among leisure visitors from Italy and Australia (34% each). Use of an online travel agency was highest among leisure visitors from Mexico (air) and Italy (49% each), and lowest among visitors from Japan and India (24% and 27% respectively). Use of a personal recommendation was highest among leisure visitors from Brazil and India (55% and 40% respectively) and lowest among leisure visitors from Japan and Mexico (air) (23% 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 4,508,000 475,000 311,000 317,000 122,000 487,000 485,000 102,000 209,000 250,000 160,000 391,000 (Number of Respondents) (3,770) (392) (311) (213) (102) (304) (244) (81)** (368) (195) (110) (75)** Airlines Directly 43.8% 59.7% 38.2% 35.6% 34.0% 34.2% 35.7% 40.6% 44.7% 40.9% 48.4% 44.9% Online Travel Agency 35.5 34.4 43.3 29.2 48.9 40.3 28.6 26.8 23.6 33.6 33.8 49.3 Personal Recommendation 30.3 25.3 31.2 28.9 27.5 34.3 27.0 39.6 23.2 30.4 55.0 24.1 Travel Agency Office 28.0 18.6 33.6 21.5 39.7 56.3 17.1 41.4 28.6 10.5 23.7 8.8 Travel Guide 17.8 20.5 26.2 20.6 25.7 13.6 16.9 7.6 25.6 5.4 24.3 8.3 Tour Operator/Travel Club 11.0 15.2 10.0 8.8 24.7 8.7 11.9 8.5 5.8 24.3 8.9 7.3 Government Travel Office 9.1 7.4 7.6 5.1 17.7 9.7 6.3 5.1 5.3 4.5 19.6 21.1 Corporate Travel Dept. 5.6 2.8 7.1 6.9 10.4 5.0 6.8 4.2 6.5 4.2 11.2 4.8 Other 4.5 3.5 6.2 2.1 6.8 3.5 4.1 6.9 4.3 3.5 7.5 4.7 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, 2013. 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 (2013) Most of the overseas leisure travelers to California (77%) purchased their airline ticket, particularly visitors from Italy, Australia, India and the UK (85%, 84% 83% and 82% respectively). Leisure visitors from Mexico (air) (44%) and South Korea (55%) had the lowest tendency toward purchasing an airline ticket. Results are similar to those from 2012, but cannot be compared with years prior to that due to a change in categories in 2012. Similar to 2012, 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 4,508,000 475,000 311,000 317,000 122,000 487,000 485,000 102,000 209,000 250,000 160,000 391,000 (Number of Respondents) (3,424) (361) (277) (190) (95)** (272) (215) (75)** (348) (186) (101) (60)** Paid Ticket 76.9 81.8 79.0 77.6 84.8 83.6 68.6 83.4 67.8 55.2 71.7 43.8 Discount/Group Fare 5.9 1.2 3.9 7.6-2.0 19.5-8.3 25.3 1.9 0.1 Frequent Flyer Award 4.9 4.7 6.2 1.2 1.0 7.7 1.9 4.7 4.9 4.8 5.6 0.8 Paid Upgrade 2.5 4.1 0.5 0.5-1.9 4.6-5.7 3.6 2.0 2.0 Non-revenue 2.2 2.1 0.3 2.0 1.5 2.0 1.3 1.0 3.0 3.4 0.6 2.2 Frequent Flyer Upgrade 0.7 0.8 0.4 1.0 2.7 0.6 0.5 1.0 1.7 1.1 - - Don't Know 9.9 6.7 11.1 11.3 12.6 4.5 10.7 11.9 14.0 13.0 19.2 51.0 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.* 17.2% 19.4% 13.4% 27.2% 28.2% 17.6% 27.2% 1.0% 28.3% 24.1% 9.0% 6.1% Airfare and Accom. Only 2.4% 4.5% 2.9% 2.3% 2.9% 0.6% 3.6% - 7.2% 1.4% 1.5% - Bus/Coach 8.1 5.2 3.9 17.0 8.0 11.1 14.7 0.9 9.9 19.1 0.8 - Attractions/Events/Ent. 8.6 3.7 5.2 18.2 7.5 11.9 17.9 1.0 11.4 15.5-6.1 Guided Tours 7.8 4.7 3.2 19.6 10.9 9.5 13.9 1.0 12.1 17.0-1.0 Meals 7.4 2.6 3.4 18.0 6.4 6.4 15.5 0.9 12.7 18.8-5.1 Rental Car 5.7 6.4 5.3 10.0 15.4 6.6 8.3 0.1 0.8 0.6 7.0 - Cruise 2.3 4.5 0.1 7.3 1.0 1.9 3.5-3.2 0.4 - - Rail Tickets 0.9 0.5 1.0 0.9-1.7 1.2-6.3-0.4 - Recreation 1.6 0.2 0.1 7.8-0.9 3.5-1.9 1.0 - - Tour Guide for Entire Trip 5.3 2.0 4.6 17.5 4.5 2.6 11.7-8.4 8.6 - - No 82.8% 80.6% 86.6% 72.8% 71.8% 82.4% 72.8% 99.0% 71.7% 75.9% 91.0% 93.9% 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, 2013. CIC Research, Inc., and Visit California. 79

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Table 36 TRAVEL PARTY SIZE OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2013) 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 1.8 persons. These results are nearly the same as 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 4,508,000 475,000 311,000 317,000 122,000 487,000 485,000 102,000 209,000 250,000 160,000 391,000 (Number of Respondents) (3,809) (396) (313) (216) (105) (304) (246) (83)** (375) (199) (111) (75)** Adults Only 86.8% 89.0% 89.5% 80.4% 91.2% 88.0% 80.1% 91.2% 86.7% 82.6% 80.9% 85.3% Adults and Children 13.2 11.0 10.5 19.6 8.8 12.0 19.9 8.8 13.3 17.4 19.1 14.7 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 1.8 1.7 1.8 2.1 1.9 1.9 2.3 1.6 1.7 1.8 2.1 1.9 Median Total Party Size 2.0 2.0 2.0 2.0 2.0 2.0 1.0 1.0 2.0 2.0 2.0 2.0 ADULTS ONLY (Number of Respondents) (3,153) (345) (275) (162) (93)** (259) (179) (75)** (324) (162) (87)** (62)** Mean Adult Party Size 1.6 1.5 1.6 1.6 1.7 1.6 1.8 1.4 1.5 1.5 1.7 1.6 Median Adult Party Size 1.0 1.0 2.0 2.0 2.0 2.0 1.0 1.0 1.0 1.0 2.0 1.0 ADULTS AND CHILDREN (Number of Respondents) (656) (51)** (38)** (54)** (12)** (45)** (67)** (8)** (51)** (37)** (24)** (13)** Mean Party Size 3.7 3.7 3.5 4.1 4.1 3.8 4.1 3.0 3.1 3.3 3.7 3.9 Median Party Size 4.0 4.0 4.0 4.0 4.0 4.0 3.0 3.0 3.0 3.0 3.0 3.0 *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, 2013. CIC Research, Inc., and Visit California. 81

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Table 37 GENDER AND AGE OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2013) Slightly more female (53%) than male (47%) overseas leisure visitors to California were surveyed. The median age for females in 2013 was 38 years (36 years in 2012), versus 41 years for males (the same as that in 2012). 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 4,508,000 475,000 311,000 317,000 122,000 487,000 485,000 102,000 209,000 250,000 160,000 391,000 (Number of Respondents) (3,493) (356) (275) (204) (97)** (279) (225) (77)** (347) (189) (100) (67)** MALE ADULTS 47.3% 52.2% 48.2% 46.3% 52.0% 45.0% 45.3% 54.6% 51.1% 35.9% 55.6% 41.6% 18-24 Years 5.2 7.3 3.5 2.4 3.1 5.7 6.5 1.4 5.2 2.8 7.9 10.5 25-34 Years 12.3 12.7 14.7 9.8 21.1 11.1 17.1 2.2 12.7 14.5 23.7 6.9 35-54 Years 16.5 17.5 17.0 20.3 19.7 12.4 14.8 14.4 17.2 12.4 16.6 11.4 55 + Years 13.4 14.7 13.0 13.8 8.2 15.8 6.9 36.6 16.0 6.1 7.4 12.8 Average Male Age 43.3 42.5 43.7 46.5 38.0 45.3 37.2 55.4 44.5 39.9 37.8 41.4 Median Male Age 41.0 41.0 41.0 46.0 36.0 42.0 34.0 59.0 44.0 36.0 34.0 44.0 SOUTH KOREA BRAZIL MEXICO (AIR) FEMALE ADULTS 52.7% 47.8% 51.8% 53.7% 48.0% 55.0% 54.7% 45.4% 48.9% 64.1% 44.4% 58.4% 18-24 Years 8.3 7.5 13.3 9.0 8.4 9.9 3.1 9.7 5.1 6.7 6.5 11.5 25-34 Years 15.8 8.9 13.6 13.8 25.2 17.7 11.5 17.5 13.6 28.3 15.7 9.8 35-54 Years 17.8 14.9 16.0 15.4 8.5 15.7 34.1 13.2 16.4 20.5 17.8 31.2 55 + Years 10.8 16.3 8.8 15.6 5.8 11.6 6.1 5.0 13.8 8.6 4.2 5.8 Average Female Age 40.1 45.7 38.3 41.8 35.5 38.9 40.5 35.5 42.7 36.8 36.3 38.1 Median Female Age 38.0 46.0 33.0 40.0 30.0 34.0 40.0 30.0 40.0 33.0 34.0 37.0 *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, 2013. CIC Research, Inc., and Visit California. 83

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Table 38 ANNUAL HOUSEHOLD INCOME OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2013) Overseas leisure travelers to California in 2013 had a median household income of $66,700, down slightly from $75,000 in 2012. 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 2013 (Table 17) was $72,000. Overseas leisure visitors from Australia ($95,300) and the U.K. ($92,000) reported the highest median household income. Leisure visitors from India ($15,800) reported the lowest median household income. COUNTRY OF RESIDENCE OF VISITORS ANNUAL HOUSEHOLD INCOME* TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) ESTIMATED TRAVELERS 4,508,000 475,000 311,000 317,000 122,000 487,000 485,000 102,000 209,000 250,000 160,000 391,000 (NUMBER OF RESPONDENTS) (2,258) (213) (141) (119) (44)** (189) (175) (40)** (237) (134) (75)** (44)** Under $20,000 15.4% 3.7% 13.3% 20.8% 15.2% 6.3% 16.3% 54.7% 4.3% 17.8% 24.5% 29.0% $20,000 - $59,000 29.5 21.6 31.4 30.9 29.1 20.9 44.2 23.3 27.9 34.3 24.3 34.5 $60,000 - $99,999 23.3 34.2 19.6 25.8 35.4 23.9 19.6 6.1 26.2 33.1 9.5 2.5 $100,000 - $139,999 11.7 15.4 13.9 12.8 12.6 13.6 9.8 2.9 15.4 5.6 10.9 16.0 $140,000 - $179,999 6.7 4.6 8.5 3.5 2.5 13.0 5.9 0.0 6.3 1.9 15.7 5.5 $180,000 and over 13.3 20.4 13.2 6.2 5.1 22.5 4.2 13.0 19.9 7.2 15.1 12.5 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% Average Annual Income $96,400 $122,100 $95,500 $72,800 $90,300 $125,300 $66,600 $52,200 $132,500 $74,300 $110,600 $85,600 Median Annual Income $66,700 $92,000 $74,700 $59,700 $65,300 $95,300 $48,500 $15,800 $83,200 $55,800 $68,600 $38,400 *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, 2013. CIC Research, Inc., and Visit California. 85

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Table 39 NIGHTS AWAY FROM HOME / FIRST INTERNATIONAL TRIP OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2013) Overseas leisure visitors to California in 2013 had an average U.S. trip stay of 20 nights and an average stay in California of 11 nights. Leisure travelers from India and Australia reported the longest stays in the U.S. (46 nights and 25 nights respectively), while those from India and Italy reported the longest stays in California (20 nights and 12 nights respectively). (Caution small sample size for India and Mexico Air). 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 (7 nights and 8 nights respectively). In 2013, 31% of overseas leisure visitors to California were on their first international trip (29% in 2012). Leisure visitors from China (55%), Australia (49%), and South Korea (47%) had the highest proportion traveling internationally for the first time. 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 4,508,000 475,000 311,000 317,000 122,000 487,000 485,000 102,000 209,000 250,000 160,000 391,000 (Number of Respondents) (3,802) (392) (312) (216) (105) (304) (247) (82)* (374) (200) (111) (73)* Mean No. Nights 19.6 15.8 19.2 18.4 18.6 24.6 18.3 45.8 8.8 16.0 15.7 12.3 Median No. Nights 15.0 14.0 18.0 15.0 15.0 21.0 12.0 30.0 6.0 9.0 15.0 10.0 SOUTH KOREA BRAZIL MEXICO (AIR) NIGHTS IN CALIFORNIA (Number of Respondents) (3,266) (352) (263) (193) (94)* (281) (204) (63)* (335) (165) (100) (54)* Mean Nights in Dest. 10.6 10.4 9.7 9.3 11.6 9.3 9.5 19.5 7.3 9.8 9.3 8.2 Median Nights in Dest. 7.0 8.0 8.0 7.0 7.0 6.0 6.0 10.0 5.0 5.0 8.0 6.0 FIRST INTERNATIONAL TRIP (Number of Respondents) (3,340) (358) (266) (195) (91)* (275) (208) (71)* (329) (170) (100) (57)* Yes 31.3 15.3 27.3 37.3 28.3 49.2 55.2 37.2 14.9 47.2 18.5 18.8 No 68.7 84.7 72.7 62.7 71.7 50.8 44.8 62.8 85.1 52.8 81.5 81.2 *Caution Small sample size. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013. CIC Research, Inc., and Visit California. 87

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Table 40 PORT OF ENTRY OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2013) Similar to results from previous years, Los Angeles was the major port of entry for all leisure travelers to California (46%) followed by San Francisco (23%). COUNTRY OF RESIDENCE OF VISITORS PORT OF ENTRY* TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) ESTIMATED TRAVELERS 4,508,000 475,000 311,000 317,000 122,000 487,000 485,000 102,000 209,000 250,000 160,000 391,000 (Number of Respondents) (3,823) (396) (313) (217) (106) (304) (248) (83)** (375) (200) (111) (76)** Atlanta, GA 1.7% 0.7% 4.2% 1.4% - - - 1.1% - - 14.0% 1.0% Boston, MA 0.2-0.9 - - - - 6.1 - - - - Chicago, IL 3.4 1.7 9.1 1.6 5.7% 0.2% 4.3% 16.5 0.1% - 3.5 0.3 Dallas/Ft. Worth, TX 1.1 0.2 0.6 1.0-0.6 - - - - 14.0 2.1 Detroit, MI 0.5 0.5-0.9 - - 1.3 - - 0.6 4.9 - Honolulu, HI 1.5 0.6 0.7 - - 3.0 3.4-8.8 1.4 - - Houston, TX 0.9 0.1 0.7 - - 0.1-1.1 - - 8.8 2.4 Las Vegas, NV 2.7 12.2 5.2 3.1 2.9-0.2-0.5 0.5 7.1 - Los Angeles, CA 45.6 35.2 32.8 49.1 43.1 83.4 46.1 18.1 49.0 50.1 16.7 69.1 Miami, FL 3.3 1.9 0.8 4.8 2.7-0.2 0.6 - - 13.2 - Minn./St. Paul, MN 0.1 0.1-0.4 - - 0.5 - - - - - New York, NY 5.7 4.7 5.2 7.0 14.5 3.0 2.9 7.1 0.3 0.5 8.2 - Newark, NJ 2.1 3.7 3.6 1.3 - - 0.6 14.3 0.3-0.5 0.6 Philadelphia, PA 0.8 1.4 1.2 0.7 3.2 - - 0.8 - - - - San Francisco, CA 22.5 24.3 26.1 23.3 19.6 8.9 25.5 34.3 32.6 31.6 2.9 16.0 Seattle, WA 1.1 1.3 1.3 0.9 1.2 0.3 3.5 - - - - - Washington, DC 1.6 2.2 1.7 2.0 0.8-2.7 - - - 0.9 - Other Port 5.4 9.3 5.6 2.5 6.3 0.5 8.9 0.1 8.4 15.3 5.3 8.4 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% *Column percentages may not total to 100% due to rounding. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013. CIC Research, Inc., and Visit California. 89

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Table 41 OVERNIGHT ACCOMMODATIONS OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2013) Nearly three-quarters (73%) of overseas leisure travelers to California reported staying in hotels or motels at some time during their trip, and 30% reported staying in private homes. Hotel usage was highest among visitors from Australia (87%) followed by visitors from France and Brazil (82% each). Similar to 2012, hotel usage was lowest among visitors from India (41%), followed by Mexico (air) (50%). A high proportion of Indian (69%) and Mexico (air) (55%) leisure travelers stayed in private homes. COUNTRY OF RESIDENCE OF VISITORS TYPE OF ACCOMMODATIONS * TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) ESTIMATED TRAVELERS 4,508,000 475,000 311,000 317,000 122,000 487,000 485,000 102,000 209,000 250,000 160,000 391,000 (Number of Respondents) (3,000) (342) (244) (181) (86)** (261) (161) (57)** (297) (148) (100) (55)** Hotel / Motel 73.1% 76.7% 69.1% 81.8% 75.4% 86.6% 61.0% 40.8% 74.7% 65.4% 81.9% 49.8% Mean Nights in Dest. 6.8 7.1 7.3 7.1 6.0 7.0 6.3 3.9 4.3 3.8 8.0 6.3 Median Nights in Dest. 6.0 6.0 6.0 5.0 6.0 5.0 6.0 3.0 4.0 3.0 8.0 6.0 Private Home 30.2% 30.2% 28.1% 29.6% 24.4% 12.2% 26.6% 69.0% 33.4% 36.9% 23.5% 55.2% Mean Nights in Dest. 17.1 13.2 11.7 11.0 27.9 17.8 20.3 25.3 12.4 21.4 10.9 10.5 Median Nights in Dest. 10.0 10.0 10.0 7.0 14.0 7.0 13.0 14.0 6.0 15.0 7.0 8.0 Other 6.9% 8.2% 15.0% 6.7% 9.5% 5.9% 18.4% 7.8% 3.5% 1.8% 0.3% 0.1% *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, 2013. 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 (2013) Leisure travelers relied upon a variety of transportation means within the U.S. including rental cars (47%), domestic flights (46%), private or company autos (38%), subways/trams/buses (35%), and taxis/limousines (29%). Rental car use was highest among Brazilian and German leisure visitors (70% and 68% respectively). Leisure visitors from Australia had the highest use of domestic airline travel (84%), subways/trams/buses (54%), as well as taxi/cab/limousines (58%). Leisure visitors from Mexico (air) (56%) relied heavily on a company or private auto. COUNTRY OF RESIDENCE OF VISITORS TRANSPORTATION IN U.S.* TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) ESTIMATED TRAVELERS 4,508,000 475,000 311,000 317,000 122,000 487,000 485,000 102,000 209,000 250,000 160,000 391,000 (Number of Respondents) (3,381) (354) (292) (198) (98)** (278) (215) (68)** (312) (178) (104) (56)** Rented Auto 46.5% 50.7% 68.3% 53.9% 59.5% 40.9% 41.7% 14.8% 27.9% 29.2% 69.5% 39.4% Airlines in U.S. 46.3 28.3 41.5 30.4 45.0 84.0 43.3 59.4 30.6 30.6 62.3 28.0 Company or Private Auto 37.5 40.1 26.0 27.5 31.3 42.4 33.4 45.2 35.1 31.4 36.9 56.0 City Subway/Tram/Bus 34.6 35.2 44.2 38.7 33.1 53.9 23.2 23.9 32.9 22.9 30.9 11.6 Taxicab/Limousine 29.1 35.3 16.3 19.2 26.1 58.3 17.7 29.5 36.4 18.8 32.4 8.2 Bus between Cities 19.7 10.0 14.4 25.9 21.6 28.2 22.6 34.0 25.2 33.6 14.0 21.1 Ferry/River Taxi/Srt. Cruise 13.7 16.3 15.4 15.3 15.5 32.3 6.7 13.8 4.9 4.6 7.7 3.2 Railroad between Cities 7.4 7.7 7.6 2.0 3.5 12.5 8.0 21.5 13.4 4.6 0.9 6.0 Rented Bicycle /Motorcycle/Moped 6.0 6.4 6.6 8.8 10.1 6.4 3.0 3.2 4.4 1.3 14.6 3.5 Cruise Ship/River Boat 5.3 9.2 2.1 2.7 3.0 12.7 4.0 3.1 1.0 1.7 0.7 - Motor Home/Camper 2.2 5.1 7.8 1.8-1.0 0.1 11.2-1.9-3.2 *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, 2013. 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 (2013) Leisure travelers to California predominantly make use of a credit card (39%), 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 Italy, Germany, and China (55%, 54%, and 53% respectively) had the highest use of credit cards for purchases, while leisure visitors from South Korea and France had the highest use of cash/travelers checks (48% and 40% respectively), and along with Germany, the highest use of cash advance/withdrawal using credit card (22% each). 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 4,508,000 475,000 311,000 317,000 122,000 487,000 485,000 102,000 209,000 250,000 160,000 391,000 (Number of Respondents) (2,705) (270) (210) (168) (66)** (221) (171) (37)** (304) (159) (70)** (51)** Purchases Using Credit Card 39.4% 28.3% 54.3% 31.1% 54.8% 32.8% 53.2% 37.2% 46.0% 27.3% 48.0% 47.0% Cash from Home/Travelers Checks 29.9 29.4 17.8 39.7 26.8 20.5 25.0 37.7 36.1 47.9 24.6 24.8 Cash Adv./Withdrawal Using Credit Card 17.1 17.3 22.3 21.6 11.9 13.2 17.9 18.4 13.9 21.7 9.6 12.4 Purchases Using Debit Card 6.1 9.2 1.6 3.8 2.0 15.8 3.4 6.0 1.3 0.9 10.5 4.5 Cash Adv./Withdrawal Using Debit Card 7.5 15.8 4.0 3.8 4.6 17.6 0.6 0.7 2.7 2.3 7.3 11.3 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, 2013. CIC Research, Inc., and Visit California. 95

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Table 44 TRIP EXPENDITURES OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2013) Overseas leisure travelers to California in 2013 reported total expenditures in California of $8.7 billion. The 2013 mean daily expenditure in California per leisure visitor, was $181, with total spending in California of $1,921 per visitor. As a comparison, all overseas travelers to California reported spending $1,940 per visitor in CA (Table 23). COUNTRY OF RESIDENCE OF VISITORS LEISURE VISITOR SPENDING* TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN TOTAL LEIS. VISIT. TO U.S. 23,675,000 3,118,000 1,391,000 1,181,000 613,000 1,054,000 956,000 363,000 2,884,000 957,000 1,652,000 1,519,000 Total Spending in the U.S. ($ Mil.) $77,671 $7,362 $3,648 $3,181 $1,986 $4,540 $4,678 $816 $7,885 $3,084 $5,763 $1,951 Spending in the U.S. per Leis. Visitor. $3,281 $2,361 $2,623 $2,693 $3,241 $4,308 $4,893 $2,248 $2,734 $3,223 $3,488 $1,285 CALIFORNIA LESIURE VISITORS SPENDING AND NIGHTS EST. LEISURE VISIT. TO CA 4,508,000 475,000 311,000 317,000 122,000 487,000 485,000 102,000 209,000 250,000 160,000 391,000 (Number of Respondents) (1,442) (171) (111) (83)** (38)** (139) (58)** (17)** (144) (79)** (46)** (31)** Total Spending in CA ($ Mil.) $8,661 $631 $468 $563 $255 $798 $1,307 $100 $278 $886 $351 $393 Spend. in CA per Leis. Visitor $1,921 $1,327 $1,504 $1,777 $2,092 $1,639 $2,694 $980 $1,329 $3,543 $2,196 $1,005 Spending in CA per Day $181 $128 $155 $191 $180 $176 $284 $50 $182 $362 $236 $123 Average Nights in CA 10.6 10.4 9.7 9.3 11.6 9.3 9.5 19.5 7.3 9.8 9.3 8.2 Median Nights in CA 7.0 8.0 8.0 7.0 7.0 6.0 6.0 10.0 5.0 5.0 8.0 6.0 SPENDING IN THE U.S. BY LEISURE VISITORS TO CA* Total Spending in U.S ($ Mil.) $16,015 $958 $926 $1,115 $409 $2,111 $2,517 $235 $335 $1,446 $593 $589 Spending in U.S. per CA Leis. Visitor $3,553 $2,017 $2,978 $3,516 $3,354 $4,336 $5,190 $2,301 $1,602 $5,785 $3,707 $1,507 Nts in U.S. per CA Leis. Visitor 19.6 15.8 19.2 18.4 18.6 24.6 18.3 45.8 8.8 16.0 15.7 12.3 SPENDING IN THE U.S. BY CATEGORY (%) Lodging in U.S. 23.5% 27.9% 26.1% 21.7% 31.8% 24.4% 17.0% 9.0% 27.0% 15.8% 28.0% 10.0% Air Transport in U.S. 7.9% 3.5% 4.2% 5.1% 4.2% 9.5% 13.0% 8.1% 3.4% 5.4% 2.6% 17.2% Entertainment 14.8% 17.2% 16.0% 16.0% 15.2% 18.1% 8.6% 18.1% 13.4% 14.7% 14.9% 13.6% Food and Beverages 18.8% 25.8% 23.6% 23.6% 26.5% 20.1% 11.4% 14.6% 20.1% 20.3% 13.0% 12.2% Ground Trans. in U.S. 5.8% 6.2% 8.5% 7.4% 5.9% 3.6% 7.6% 16.8% 6.4% 6.1% 7.0% 2.9% Gifts and Souvenirs 25.2% 16.0% 18.3% 19.8% 14.0% 21.0% 39.1% 30.0% 25.3% 29.8% 29.7% 35.6% Other 4.0% 3.4% 3.2% 6.4% 2.4% 3.3% 3.4% 3.5% 4.7% 7.8% 4.8% 8.5% * Spending estimates were based on SIAT survey data and revised by Tourism Economics for Visit California, August 2013. **Caution - Small sample size. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013. 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* (2013) Almost four out of ten (37%) overseas leisure visitors to California in 2013 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 $1,979 per capita in California. This was a little more than the average spending in California of $1,921 reported for All Overseas leisure visitors to California. As should be expected the California-only leisure visitors reported longer lengths of stay in California (15.0 days v. 10.6 days). Average daily spending by California only leisure visitors was $132 per day, which was lower than the average daily spending of $181 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 $1,979 $1,921 PER DAY $132 $181 (NUMBER OF RESPONDENTS) (523) (1,442) AVERAGE ITEMIZED EXPENDITURES IN CA AIR TRANSPORT IN U.S. 4% 23% GROUND TRANSPORT IN U.S. 5% 8% LODGING 21% 15% FOOD, BEVERAGES 21% 19% GIFTS, SOUVENIRS 29% 6% ENTERTAINMENT 13% 25% OTHER 6% 4% AVERAGE NIGHTS IN CALIFORNIA 15.0 10.6 *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 2013. Sources: U.S. Department of Commerce, NTTO, Survey of International Air Travelers, 2013. 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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