Overseas and Mexican Visitors To California

Overseas and Mexican Visitors To California 2012 A joint marketing venture of Visit California and the California Business, Transportation and Housing Agency, Division of Tourism January 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 (2012) Total Overseas Market. There were approximately 29.8 million overseas visitors to the U.S. in 2012, up 6.7% from 27.9 million in 2011. Approximately 6.2 million overseas visitors (22.0%) indicated California was a destination on their U.S. trip, up 0.8% from 6.1 million overseas visitors to California in 2011. Mexican (Air). There were approximately 2,118,000 Mexican travelers who arrived in the U.S. by air in 2012 (an 8.6% increase from 2011). Approximately 504,000 (23.8%) of these Mexican travelers visited California during their U.S. Trip (a 2.6% increase from 2011). 1 Country of Origin. California's top ten overseas visitor market countries were: Overseas Visitors to California Rank Country 2011 2012 Percentage Change 1) China (excl. Hong Kong) 470,000 671,000 42.8% 2) United Kingdom 656,000 635,000-3.2% 3) Japan 548,000 558,000 1.8% 4) Australia 550,000 522,000-5.1% 5) Germany 409,000 399,000-2.4% 6) South Korea 394,000 388,000-1.5% 7) France 445,000 373,000-16.2% 8) India 184,000 190,000 3.3% 9) Brazil 160,000 183,000 14.4% 10) Italy 185,000 164,000-11.4% In 2012, China, the U.K., and Japan combined generated approximately 30% of the overseas visitors to California. The number of Chinese visitors to California increased by almost 43% in 2012 (671,000) from 2011 (470,000). This resulted in the ranking of Chinese visitors to California moving up to first place. U.K. visitor volume to California decreased by approximately 3%, thereby moving their ranking from first to second place. The number of Australian visitors also went down 5% from 550,000 to 522,000, resulting in the Australian ranking going from second to fourth place. Japanese visitors remained in third place while increasing slightly by less than 2%. There was a decrease in the volume of overseas visitors to California for all of the top ten overseas visitor market countries with the exception of China (increased 43%), Japan (2%), India (3%), and Brazil (14%). 1 The majority of Mexican visitors to California in 2012 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 30.0 Millions 25.0 20.0 15.0 10.0 Overseas to U.S. Overseas to CA 5.0-2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Market Share. Among the ten largest overseas visitor markets, California's share of visitors from all 10 markets except China decreased in 2012 from 2011. California Market Share of U.S. Visitors from Selected Overseas Countries Rank By Volume Country 2011 2012 1) China (excl. Hong Kong) 43.1% 45.5% 2) United Kingdom 17.1% 16.9% 3) Japan 16.9% 15.1% 4) Australia 53.0% 46.5% 5) Germany 22.4% 21.3% 6) South Korea 33.9% 31.0% 7) France 29.6% 25.6% 8) India 29.2% 26.2% 9) Brazil 10.6% 10.2% 10) Italy 20.7% 19.7% 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 2012 to 20.8%. v

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Main Destination. Three-quarters (76%) 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 (48%), followed by San Diego (13%), Anaheim-Santa Ana, and San Jose (8% and 7% respectively). Main Purpose of Trip. The main purpose of trip among overseas travelers to California was vacation (50%), followed by visiting friends and relatives (18%), 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 (63%), visiting friends/relatives (33%), and business (19%). Compared to other overseas travelers, visitors from Australia reported the highest proportion of travelers on vacation/holiday (86%), while visitors from Mexico (air) and India reported the highest proportion of those visiting friends and relatives (42% and 41% respectively). Visitors from India and Japan (50% and 33%, respectively) reported the highest proportion of business travelers. Leisure/Recreation Activities. Shopping (87%), sightseeing (83%), and fine dining (41%) were the most common leisure and recreation activities of overseas visitors to California in 2012. More than nine in ten visitors from Australia reported shopping (95%) or sightseeing (94%) as a recreation activity, while more than half of Australian visitors (54%) reported fine dining. Use of Travel Agents. Travel agent usage has declined in 2012 compared with 2011 (32% versus 46% respectively.) Visitors from Australia (56%) and Italy (50%) continue to 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, decreased from 25% in 2011 to 15% in 2012. An Internet booking service was reportedly used by 29% of travelers in 2012, while 20% reported contacting the hotels/motels directly, and 8% reported that their company s travel department booked their lodging. Accommodations. Similar to 2011, almost eight in ten overseas travelers to California in 2012 reported staying in hotels or motels at some time during their trip (78%). Visitors from Mexico (air) and India reported the lowest hotel usage (51% and 65%, respectively), while visitors from Australia and Japan (86% each respectively), Italy and Brazil (84% each respectively) reported the highest hotel usage. Gender and Age. Similar to results from previous years, approximately 59% of overseas travelers to California during 2012 were adult males and 41% were adult females. During 2012, the average age of traveling adult males (41 years old) was three years older than the average traveling adult female (38 years old). Length of Stay. During 2012, California's overseas visitors spent an average of 22 nights in the U.S. and 11 nights in California, identical to the numbers in 2011. Once again, visitors from India reported the highest number of nights stayed in the U.S. (36 nights) as well as in California (21 nights). Visitors from Mexico (air) and Japan reported the least amount of time spent in the U.S. (13 nights and 14 nights respectively), while visitors from Australia and Japan reported the least amount of time in California (8 nights each, respectively). vii

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First International Trip. More than one quarter of overseas visitors to California in 2012 were traveling on their first international U.S. trip (26%) as compared with 31% in 2011. Transportation Use. Approximately four in ten overseas visitors to California made use of airlines, a rental car, or a company or private auto (45%, 43%, and 39% 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 (31%). Visitors from Australia were most likely to fly between U.S. Cities (74%), while visitors from Germany and France were most likely to make use of a rental car (61% and 56% respectively). Visitors from China were most likely to make use of a company or private auto (52%), and visitors from Australia and India (49% and 44% respectively) were most likely to make use of a taxi/cab/limousine. Advance Trip Decision. In 2012 the average overseas visitor to California decided to travel a median of 60 days prior to the actual trip, the same as that reported in 2011. Visitors from Australia and Germany reported the longest trip planning time (median = 120 days and 100 days respectively). Advance Ticket Reservation and Payment. Overseas visitors to California reserved their airline ticket a median of 45 days prior to the actual trip, the same timeframe as that reported in 2011. Visitors from India reported the shortest time frame from airline reservation to departure date (median = 18 days). On the other hand, visitors from Australia Italy, France and Germany reported the longest time frame from airline reservation to departure (median = 90 days each respectively). Overseas visitors to California paid for their airline ticket a median of 35 days prior to the actual trip, 10 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 U.K., Germany, France and Brazil paid for their ticket a median of 60 days prior to their actual trip (longest timeframe). Travel Insurance. More than six in ten (61%) overseas visitors to California in 2012 purchased travel insurance, while 39% did not. Travel Companions. The highest proportion of overseas travelers to California (59%) were traveling alone, while 24% were traveling with their spouse, 13% with family/relatives, 6% with friends, and 5% with business associates. There was a higher proportion of travelers to California traveling alone in 2012 (59%) compared with 2011 (35%). Travel Party Size. Consistent with results from previous years, the average travel party size for all overseas visitors to California during 2012 was 1.6 people. Visitors from France and Australia were the most likely to include children (12% and 11%, respectively). Prepaid Trip Package. Package tours were used by 16% of all 2012 visitors to California, as compared with 14% in 2011. During 2012, visitors to California who reported the highest use of inclusive tours were from China (30%). ix

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Expenditures in the U.S. by Overseas and Mexican (air) Visitors to California. In 2012, overseas visitors' total trip expenditures averaged $4,018 compared with $4,773 in 2011. Daily expenditures in the U.S. during 2012 decreased $20 from 2011, averaging $97 per person per day (average expenditure in 2011 was $117 per person per day). Visitors to California from Australia ($141) followed by visitors from India ($105) and Japan ($103) reported the highest average daily expenditures. Expenditures in California. In 2012, the total number of overseas visitors to California was 6,197,000, compared with 6,145,000 in 2011. These visitors reported spending $97 per person per day and they stayed an average of 11.3 nights in California. Estimated spending per visitor in California was about $1,096, down from $1,299 in 2011. Expenditures in California - Mexican (air) visitors. In 2012, the total number of Mexican (air) visitors to California was 504,000, up from 491,000 in 2011. These visitors reported spending $64 per person per day (down from the amount reported in 2011 of $71) and they stayed an average of 10.6 nights in California (0.5 nights longer than in 2011). Thus, each visitor from Mexico (air) to California was worth an average of about $678 (compared with $717 in 2011). As a result, the total estimated spending by Mexican (air) visitors to California dropped from $352 million in 2011 to $342 million in 2012. Credit Card Use. In 2012, 43% of overseas visitors to California made use of a credit card for purchases and 16% used their credit cards to withdraw cash. Almost three in ten (28%) used cash from home, 7% withdrew cash using a debit card and 6% used their debit card for purchases. These results cannot be compared with those from 2011 due to different response options presented to travelers in 2012. xi

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OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA* SELECTED HIGHLIGHTS (2012) ALL OVERSEAS VISITORS UNITED KINGDOM GERMANY FRANCE ITALY AUSTRALIA CHINA W/O HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) Estimated Travelers 6,197,000 635,000 399,000 373,000 164,000 522,000 671,000 190,000 558,000 388,000 183,000 504,000 Purpose: Business (% Change 2011/2012) 19% (-4%) 14% (-6%) 15% (-1%) 14% (1%) 8% (-6%) 9% (-2%) 28% (-3%) 50% (2%) 33% (4%) 18% (-20%) 11% (-12%) 15% (-4%) Purpose: Vacation (% Change 2011/2012) 63% (-4%) 73% (4%) 74% (-1%) 74% (-2%) 78% (8%) 86% (<1%) 47% (-14%) 22% (-10%) 44% (-12%) 48% (1%) 64% (-11%) 62% (4%) Adv. Trip Decision (mean days) 99.2 130.4 137.0 136.8 121.9 148.3 70.4 45.8 63.2 51.0 103.1 64.6 Adv. Air Decision (mean days) 70.1 103.5 102.2 102.5 88.6 98.1 38.9 33.6 43.1 31.6 74.4 48.6 Mean Travel Party Size 1.6 1.6 1.6 1.7 1.8 1.8 2.1 1.2 1.7 1.7 1.5 1.4 Median Male Age (years) 40.0 44.0 40.0 40.0 35.0 44.0 36.0 35.0 45.0 41.0 33.0 39.0 Median Female Age (years) 35.0 40.0 30.0 31.0 31.0 38.0 33.0 33.0 41.0 31.0 34.0 46.0 Mean Household Income ($000) $102,577 $125,545 $98,429 $81,627 $62,266 $127,024 $66,754 $62,244 $142,168 $72,177 $100,337 $63,093 Nights CA (mean) Nights CA (median) (Mean change 2011/2012) 11.3 7.0 (0.0 nts) 10.6 8.0 (1.6 nts) 11.5 7.0 (-1.3 nts) 12.8 7.0 (1.3 nts) 10.8 7.0 (-1.4 nts) 7.9 7.0 (0.0 nts) 13.8 5.0 (3.2 nts) 20.6 8.0 (0.1 nts) 8.2 4.0 (0.6 nts) 10.3 5.0 (-6.1 nts) 11.7 7.0 (0.6 nts) 10.6 6.0 (0.5) nts Hotel/Motel 77.9% 80.1% 77.6% 77.1% 84.0% 85.9% 68.2% 64.9% 85.6% 81.1% 83.5% 51.4% Private Home 26.5% 25.6% 26.9% 28.2% 19.1% 15.1% 27.4% 36.4% 18.3% 22.4% 22.4% 41.3% Rental Car 43.1% 49.4% 61.2% 56.4% 49.4% 40.7% 26.0% 24.1% 31.4% 34.5% 52.9% 19.4% Mean Total Trip Exp. (Change in mean trip exp 2011/2012) $4,018 (-$755) $3,446 ($72) $3,254 (-$516) $2,755 (-$1,662) $2,448 (-$1,666) Mean Spending /day in CA $97 $95 $73 $76 $64 $141 $100 $105 $103 $90 $93 $64 Spending /visitor in CA $1,096 $1,007 $840 $973 $691 $1,114 $1,380 $2,163 $845 $927 $1,088 $678 $5,830 (-$1,166) $5,085 (-$1,332) $5,592 ($97) $4,013 (-$489) $3,351 (-$1,535) $4,659 (-$1,098) $1,814 (-$369) *Does not include Canadian visitors. Only Mexican visitors arriving in the U.S. by air were included in the study. Source: ITA/OTTI, Survey of International Air Travelers, 2012 CIC Research, Inc., and Visit California. xiii

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OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA* SELECTED HIGHLIGHTS (2012) ALL OVERSEAS VISITORS UNITED KINGDOM GERMANY FRANCE ITALY AUSTRALIA CHINA W/O HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) Estimated Travelers 4,189,000 509,000 303,000 294,000 139,000 464,000 353,000 74,000 277,000 210,000 108,000 384,000 Purpose: Business 1.5 0.7 1.3 0.3 0.9 1.8 1.9 3.5 1.3 0.6 1.3 3.5 Purpose: Vacation 83.7% 86.2% 91.4% 90.5% 88.4% 92.2% 71.0% 45.1% 77.2% 75.5% 91.9% 81.3% Adv. Trip Decision (mean days) 121.7 147.4 158.6 153.0 130.4 162.8 79.6 77.3 75.4 60.5 122.7 80.5 Adv. Air Decision (mean days) 88.6 119.1 121.8 116.6 95.1 106.7 46.6 57.6 54.3 34.9 92.6 60.1 Mean Travel Party Size 1.8 1.7 1.9 1.9 1.9 1.9 2.3 1.4 1.8 1.6 1.9 1.6 Median Male Age (years) 42.7 45.7 41.3 43.6 35.8 42.5 40.4 48.3 45.0 41.4 37.6 45.5 Median Female Age (years) 39.6 44.1 36.4 39.9 36.5 38.9 36.8 43.1 43.0 36.0 38.5 43.3 Mean Household Income ($000) $99 $113 $83 $79 $53 $127 $62 $70 $128 $69 $86 $65 Nights CA (mean) Nights CA (median) 10.6 7.0 11.1 9.0 10.2 8.0 11.5 8.0 8.5 7.0 7.6 7.0 15.4 5.0 21.2 8.0 7.4 5.0 11.4 5.0 10.7 9.0 8.5 6.0 Hotel/Motel 74.6% 78.7% 73.7% 75.5% 88.4% 86.0% 65.0% 38.3% 75.5% 73.2% 82.1% 45.9% Private Home 31.1% 26.8% 30.5% 31.2% 12.6% 15.2% 33.8% 69.3% 31.0% 33.6% 24.2% 46.6% Rental Car 45.2% 52.6% 63.1% 58.0% 54.4% 38.3% 24.7% 19.7% 24.9% 32.1% 62.6% 20.1% Mean Spending /day in CA $104 $95 $82 $65 $77 $144 $102 $47 $133 $97 $142 $74 Spending /visitor in CA $1,102 $1,055 $836 $748 $655 $1,094 $1,571 $996 $984 $1,106 $1,519 $629 Mean Total Trip Expenditure $3,666 $3,035 $2,876 $2,282 $2,404 $5,668 $4,425 $3,480 $3,067 $3,150 $4,417 $1,896 *Does not include Canadian visitors. Only Mexican visitors arriving in the U.S. by air were included in the study. Source: ITA/OTTI, Survey of International Air Travelers, 2012 CIC Research, Inc., and Visit California. xv

Figure 1 TOP TEN COUNTRIES OF RESIDENCE OVERSEAS VISITORS TO CALIFORNIA (2012) Visitors (000's) CHINA 671 UNITED KINGDOM JAPAN AUSTRALIA 522 558 635 GERMANY SOUTH KOREA FRANCE 399 388 373 INDIA BRAZIL ITALY 190 183 164 0 200 400 600 800 Source: ITA In-Flight Survey, 2012 CIC Research, Inc. xvi

Table 1 RESIDENCE OF VISITORS TO THE UNITED STATES AND CALIFORNIA (2012) UNITED STATES CALIFORNIA Number of 2011-2012 Estimated 2011-2012 CA Share of Visitors Percent Visitors to Percent Visitors from RESIDENCE OF VISITORS to the U.S. Change California Change* this Country EUROPE 12,478,491-1.4% 2,421,000-7.3% 19.4% W. EUROPE 11,751,218-2.0% 2,280,000-8.1% 19.4% Austria 183,276 2.1% 35,000 0.0% 19.2% Belgium 260,267 0.3% 34,000-38.2% 13.2% Denmark 271,363-1.1% 63,000 12.5% 23.1% France 1,455,720-3.2% 373,000-16.2% 25.6% Germany 1,875,952 2.9% 399,000-2.4% 21.3% Ireland 331,850-4.3% 78,000 13.0% 23.5% Italy 831,343-6.8% 164,000-11.4% 19.7% Netherlands 591,746-1.5% 122,000 6.1% 20.6% Norway 262,822 5.5% 47,000-9.6% 17.7% Spain 607,273-13.3% 101,000-27.3% 16.7% Sweden 442,013 0.7% 89,000 12.7% 20.2% Switzerland 476,637 0.0% 102,000-17.7% 21.4% United Kingdom 3,763,381-1.9% 635,000-3.2% 16.9% Other Western Europe 397,575-2.0% 38,000 46.2% 9.6% E. EUROPE 727,273 8.0% 134,000-7.6% 18.4% CARIBBEAN 1,131,480 3.7% 25,000-10.7% 2.2% Dominican Rep 244,417 9.7% 1,000-91.7% 0.3% Jamaica 166,984-27.5% 3,000-25.0% 1.8% Trinidad & Tobago 144,535-9.2% 8,000 700.0% 5.2% 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 (2012) UNITED STATES CALIFORNIA Number of 2011-2012 Estimated 2011-2012 CA Share of Visitors Percent Visitors to Percent Visitors from RESIDENCE OF VISITORS to the U.S. Change California Change* this Country SOUTH AMERICA 4,416,175 17.6% 371,000 10.1% 8.4% Argentina 614,504 20.0% 52,000-1.9% 8.4% Brazil 1,791,103 18.8% 183,000 14.4% 10.2% Chile 187,603 9.4% 28,000 33.3% 14.7% Colombia 602,338 21.2% 23,000-32.4% 3.9% Ecuador 209,828-0.5% 15,000-11.8% 7.2% Peru 190,205 10.7% 20,000 5.3% 10.6% Venezuela 674,754 20.3% 44,000 158.8% 6.5% Other South America 145,840 17.6% 6,000-62.5% 4.1% CENTRAL AMERICA (Excld. 802,956 7.5% 94,000-14.5% 11.7% Mexico) Costa Rica 179,755 6.5% 17,000-26.1% 9.7% Guatemala 194,373 5.8% 39,000 50.0% 20.3% Honduras 130,386 9.0% 2,000-50.0% 1.6% Panama 133,268 11.5% 12,000 33.3% 8.8% Other Central America 165,174 6.2% 24,000-50.0% 14.5% AFRICA 373,441 14.2% 39,000-7.1% 10.5% South Africa, Rep. of 95,086 9.8% 19,000 0.0% 20.1% Other Africa 278,355 15.7% 20,000-13.0% 7.2% OCEANIA 1,321,901 6.3% 632,000-6.1% 47.8% Australia 1,122,180 8.1% 522,000-5.1% 46.5% New Zealand 185,706-1.7% 102,000-2.9% 54.9% 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 (2012) UNITED STATES CALIFORNIA Number of 2011-2012 Estimated 2011-2012 CA Share Of Visitors Percent Visitors to Percent Visitors from RESIDENCE OF VISITORS to the U.S. Change California Change* this Country ASIA Hong Kong India Indonesia Japan Korea, South People's Republic of China Philippines Republic of China (Taiwan) Singapore Thailand 8,311,196 14.7% 2,169,000 4.1% 26.1% 133,104 3.6% 63,000-1.6% 47.3% 724,433 9.2% 190,000 3.3% 26.2% 73,579 11.4% 38,000-2.6% 52.2% 3,698,073 13.8% 558,000 1.8% 15.1% 1,251,432 9.3% 388,000-1.5% 31.0% 1,474,408 35.3% 671,000 42.8% 45.5% 176,218 5.6% 79,000-9.2% 44.6% 290,163-0.1% 138,000-6.1% 47.6% 162,077 1.7% 76,000-7.3% 46.6% 81,802 11.6% 41,000 36.7% 50.4% MIDDLE EAST 925,398 14.1% 198,000 26.9% 21.9% Egypt 62,342 34.5% 15,000 114.3% 24.8% Israel 303,629 0.3% 63,000-4.5% 20.7% Saudi Arabia 182,225 37.1% 48,000 92.0% 26.6% Turkey 137,362 12.6% 25,000 8.7% 18.1% Other Middle East 239,840 116.0% 47,000 34.3% 19.6% TOTAL OVERSEAS VISITORS 29,761,038 6.7% 6,197,000 0.8% 20.8% (Number of Respondents) (39,549) (7,739) Mexico (Air Arrivals Only) 2,117,951 8.6% 504,000 2.6% 23.8% 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, ITA, Survey of International Air Travelers, 2012. 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 (2000-2012) 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 2000 24.5% 21.0% 22.1% 16.3% 30.4% 27.3% 25.1% 32.3% 22.8% 26.0% 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% 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 2000 6,364,000 2,435,000 395,000 767,000 330,000 167,000 139,000 52,000 585,000 452,000 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 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 (2000-2012) 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 2000 33.2% 21.8% 63.3% 62.1% 59.7% 40.1% 59.7% 50.7% 60.8% 11.6% 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% 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 2000 2,508,000 1,103,000 419,000 126,000 273,000 110,000 149,000 328,000 328,000 341,000 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 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 (2012)...xiii OVERSEAS AND MEXICAN LEISURE VISITORS TO CA HIGHLIGHTS (2012)... xv Table 1 RESIDENCE OF VISITORS TO THE U.S. AND CALIFORNIA (2012)...xvii Table 2 OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA AND SHARE OF TOTAL U.S. MARKET BY COUNTRY 2000-2012... 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 2012 Office of Travel & Tourism Industries (OTTI) "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 2. Approximately 7,740 survey respondents reported a California visit in 2012. 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. 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 2012 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 The international visitor volume estimates appearing in this report were based on the U.S. Department of Commerce, "Survey of International Air Travelers" and then were adjusted by the CTTC to reflect additional market information regarding travel to California. 2

OVERSEAS AND MEXICAN (AIR) VISITORS TO CALIFORNIA (2012) 3

Figure 2 MAIN STATE DESTINATION OVERSEAS VISITORS TO CALIFORNIA (2012) Source: ITA In-Flight Survey, 2012 CIC Research, Inc. 4

Table 3 MAIN DESTINATION BY STATE OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2012) More than three in four (76%) overseas visitors to California in 2012 indicated that California was their main destination on their U.S. trip. Of all overseas visitors to California, Mexico (air), Japanese, Indian and French visitors (92%, 87%, 87% and 86% respectively) reported the highest proportion with California as their main state of destination in the U.S. MAIN DESTINATION* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 6,197,000 635,000 399,000 373,000 164,000 522,000 671,000 190,000 558,000 388,000 183,000 504,000 (Number of Respondents) (5,493) (660) (350) (231) (121) (209) (318) (184) (967) (228) (131) (153) California 76.4% 77.4% 76.3% 85.5% 77.2% 51.7% 79.9% 87.1% 87.1% 78.7% 61.8% 91.8% New York 4.5 1.7 1.5 3.1 9.3 14.9 5.2 1.0 0.7 3.5 4.0 - Nevada 3.4 3.2 6.4 3.7 4.2 4.4 2.6-1.0 5.4 12.9 1.8 Hawaiian Islands 2.9 4.6 4.2 2.8 4.7 7.9 0.7-4.3 1.5 0.9 - Florida 1.8 2.0 1.0 0.5 0.6 3.2 0.5 0.6-0.7 7.6 0.1 SOUTH KOREA BRAZIL MEXICO (AIR) *Visitors may report only one destination -- States with less than one percent response were not listed. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 5

Figure 3 TOP TEN MSA DESTINATIONS OVERSEAS VISITORS TO CALIFORNIA (2012) Los Angeles - Long Beach 58.2% San Francisco 47.6% San Diego 13.1% Anaheim San Jose Riverside Salinas Santa Barbara - Lompoc Sacramento Oakland 8.2% 7.1% 3.9% 3.9% 3.6% 3.0% 2.1% 0% 10% 20% 30% 40% 50% 60% 70% Source: ITA In-Flight Survey, 2012 CIC Research, Inc. 6

Table 4 CALIFORNIA MSAs VISITED OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA* (2011) The most common Metropolitan Statistical Areas (MSAs) visited by overseas visitors to California in 2012 were Los Angeles Long Beach (58%) (59% in 2011), San Francisco (48%) (46% in 2011), San Diego (13%) (12% in 2011), Anaheim Santa Ana (8%) (6% in 2011), followed by San Jose (7%), Salinas, Riverside-San Bernardino, and Santa Barbara- Santa Maria (4% 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 6,197,000 635,000 399,000 373,000 164,000 522,000 671,000 190,000 558,000 388,000 183,000 504,000 (Number of Respondents) (7,519) (779) (456) (307) (174) (404) (539) (235) (1,361) (303) (170) (161) SOUTH KOREA BRAZIL MEXICO (AIR) Los Angeles-Long Beach MSA 3,607,000 313,000 214,000 225,000 107,000 379,000 467,000 72,000 257,000 247,000 108,000 290,000 (Los Angeles County) 58.2% 49.3% 53.7% 60.3% 65.4% 72.6% 69.6% 37.8% 46.1% 63.6% 59.1% 57.6% San Francisco MSA 2,950,000 327,000 256,000 230,000 102,000 226,000 248,000 88,000 160,000 172,000 80,000 121,000 (San Francisco-Marin-San Mateo Counties) 47.6% 51.5% 64.1% 61.7% 62.3% 43.2% 36.9% 46.5% 28.6% 44.3% 43.5% 24.1% San Diego MSA 812,000 86,000 63,000 41,000 26,000 61,000 51,000 20,000 99,000 39,000 44,000 52,000 (San Diego County) 13.1% 13.5% 15.8% 11.0% 15.6% 11.7% 7.6% 10.4% 17.8% 10.0% 24.0% 10.4% Anaheim-Santa Ana MSA 508,000 56,000 18,000 18,000 7,000 94,000 14,000 11,000 56,000 21,000 23,000 81,000 (Orange County) 8.2% 8.8% 4.4% 4.8% 4.2% 18.0% 2.1% 6.0% 10.1% 5.5% 12.8% 16.1% San Jose MSA 440,000 30,000 22,000 15,000 5,000 6,000 60,000 44,000 51,000 46,000 21,000 32,000 (Santa Clara County) 7.1% 4.7% 5.6% 4.0% 3.0% 1.2% 8.9% 23.2% 9.2% 11.9% 11.5% 6.3% Riverside-San Bernardino MSA 242,000 67,000 31,000 21,000 3,000 13,000 4,000 1,000 12,000 4,000 5,000 10,000 (Riverside-San Bernardino Counties) 3.9% 10.6% 7.8% 5.5% 1.7% 2.5% 0.6% 0.4% 2.2% 1.1% 2.5% 2.0% Salinas MSA 242,000 64,000 22,000 20,000 7,000 10,000 2,000 1,000 5,000 4,000 12,000 7,000 (Monterey County) 3.9% 10.0% 5.5% 5.4% 4.4% 1.9% 0.3% 0.5% 0.9% 1.0% 6.3% 1.3% 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 6,197,000 635,000 399,000 373,000 164,000 522,000 671,000 190,000 558,000 388,000 183,000 504,000 (NUMBER OF RESPONDENTS) (7,519) (779) (456) (307) (174) (404) (539) (235) (1,361) (303) (170) (161) SOUTH KOREA BRAZIL 2010-11 MEXICO (AIR) Santa Barbara-Lompoc MSA 223,000 39,000 32,000 18,000 6,000 8,000 10,000-9,000 <1,000 16,000 - (Santa Barbara County) 3.6% 6.2% 8.0% 4.9% 3.9% 1.5% 1.5% - 1.7% 0.1% 8.6% - Sacramento MSA 186,000 37,000 23,000 15,000 <1,000 6,000 5,000 4,000 10,000 5,000 3,000 15,000 (El Dorado-Placer-Sacramento- Yolo Counties) 3.0% 5.9% 5.8% 4.1% 0.2% 1.2% 0.7% 1.9% 1.8% 1.4% 1.9% 3.0% Oakland MSA 130,000 12,000 10,000 15,000 4,000 3,000 7,000 7,000 9,000 6,000 3,000 3,000 (Alameda-Contra Costa Counties) 2.1% 1.9% 2.4% 4.0% 2.4% 0.5% 1.0% 3.8% 1.6% 1.5% 1.9% 0.5% San Luis Obispo MSA 130,000 29,000 18,000 8,000-10,000 3,000-1,000-4,000 - (San Luis Obispo County) 2.1% 4.6% 4.4% 2.1% - 1.9% 0.4% - 0.1% - 2.0% - *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, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 9

Figure 4 TRAVEL COMPANIONS OVERSEAS VISITORS TO CALIFORNIA / U.S. (2012) Source: ITA In-Flight Survey, 2012 CIC Research, Inc. 10

Table 5 TRAVEL COMPANIONS OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2012) Almost six in ten overseas visitors to California (59%) were traveling alone, 24% were traveling with a spouse/partner, and 13% were traveling with family or relatives. Visitors from India (82%) and Mexico (air) (75%) had the highest proportion of respondents who were traveling alone, while visitors from Italy (42%) had the highest proportion that was traveling with a spouse/partner. Visitors from Australia (21%) had the highest proportion of respondents who were traveling with family/relatives, and visitors from Japan (13%) and China (12%), had the highest proportion traveling with business associates. TRAVEL COMPANIONS* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 6,197,000 635,000 399,000 373,000 164,000 522,000 671,000 190,000 558,000 388,000 183,000 504,000 (Number of Respondents) (7,675) (796) (475) (311) (177) (413) (543) (249) (1,388) (301) (171) (168) Traveling Alone 58.6% 52.2% 58.2% 55.6% 39.9% 41.7% 51.0% 81.5% 61.8% 62.7% 68.2% 74.9% Spouse/Partner 23.5 37.7 24.5 26.8 42.2 39.1 20.0 11.3 12.1 15.4 18.4 12.7 Family/Relatives 12.8 8.4 12.9 18.5 12.2 20.9 13.3 5.0 10.4 11.8 12.8 10.7 Friends 6.1 4.7 8.1 4.7 9.8 6.7 7.6 0.5 6.0 7.3 8.2 4.9 Business Associates 4.5 2.2 2.0 1.5 0.6 0.8 12.3 3.7 12.7 8.9 0.4 1.7 Tour Group 0.7 0.7 1.0 1.1-0.3 2.9 0.3 1.2 0.6-0.2 SOUTH KOREA BRAZIL MEXICO (AIR) *Column percentages may total more than 100% due to multiple responses. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 11

Figure 5 MAIN PURPOSE OF U.S. TRIP OVERSEAS VISITORS TO CALIFORNIA / U.S. (2012) Source: ITA In-Flight Survey, 2012 CIC Research, Inc. 12

Table 6 MAIN PURPOSE OF TRIP OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2012) The greatest proportion of overseas visitors to California reported the main purpose of their trip as vacation/holidays (50%). This was followed by those whose main purpose was visiting friends/relatives (18%), and those whose main purpose was business/professional (15%). Visitors from Australia (77%) and Italy (74%) had the highest proportion of visitors whose main purpose was vacation/holidays, while visitors from India (27%) had the highest proportion of visitors whose main purpose was visiting friends/relatives, as well as whose main purpose was business/professional. MAIN PURPOSE OF TRIP COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 6,197,000 635,000 399,000 373,000 164,000 522,000 671,000 190,000 558,000 388,000 183,000 504,000 (Number of Respondents) (7,049) (755) (433) (301) (168) (395) (486) (220) (1,268) (287) (155) (153) Vacation/Holidays 49.5% 61.6% 61.5% 61.0% 73.8% 77.4% 33.9% 12.0% 31.9% 33.8% 48.6% 53.8% Visit Friends/Relatives 18.0 18.6 14.4 17.9 10.9 11.5 18.6 27.1 17.8 20.3 10.2 22.5 Business/Professional 15.4 11.1 11.1 11.3 5.8 6.3 22.3 41.4 27.2 15.8 9.0 12.4 Attend A Convention 10.0 5.4 6.4 5.7 3.9 3.0 13.5 11.9 15.2 14.5 13.6 6.9 Education 4.8 1.2 5.3 3.6 4.2 1.0 7.8 6.4 5.9 10.2 10.7 3.2 Other 2.3 2.2 1.3 0.6 1.3 0.8 4.0 1.2 2.0 5.5 7.8 1.3 SOUTH KOREA BRAZIL MEXICO (AIR) Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 13

Figure 6 PURPOSE OF U.S. TRIP OVERSEAS VISITORS TO CALIFORNIA / U.S. (2012) Source: ITA In-Flight Survey, 2012 CIC Research, Inc. 14

Table 7 PURPOSE OF TRIP OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2012) More than six in ten (63%) overseas visitors to California reported visiting for vacation/holiday purposes, while 33% were visiting friends/relatives (67% in 2011 were on vacation/holiday, and 34% were visiting friends/relatives), and 19% were on business (23% in 2011). Visitors to California attending a convention/conference/trade show accounted for 12% (up from 9% in 2011). Visitors were allowed to list more than one purpose of their trip. Visitors from Australia (86%) indicated high proportions of vacationing during their U.S. trip, while visitors from Mexico Air (42%) and India (41%) and reported high proportions of visiting friends and relatives when compared with visitors from other countries. Visitors to California from India (50%) reported a high proportion of visiting for business purposes when compared with visitors from other countries, while visitors from Italy (8%) and Australia (9%) reported the lowest proportion visiting for this reason. PURPOSE OF TRIP* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 6,197,000 635,000 399,000 373,000 164,000 522,000 671,000 190,000 558,000 388,000 183,000 504,000 (Number of Respondents) (7,535) (786) (470) (312) (175) (411) (527) (243) (1,346) (293) (168) (168) Vacation/Holidays 62.8% 72.8% 73.9% 73.9% 78.2% 86.1% 47.0% 22.4% 43.6% 48.2% 63.9% 62.2% Visit Friends/Relatives 32.7 31.3 29.4 28.1 19.6 27.3 29.4 40.7 27.0 30.5 24.8 42.2 Business/Professional 19.3 13.6 15.4 13.5 8.1 9.1 28.3 49.9 32.5 18.4 10.5 15.1 Attend A Convention 12.4 7.3 9.0 5.8 4.3 6.1 15.8 18.8 19.2 15.7 14.8 8.0 Education 7.2 3.1 9.3 5.3 7.0 2.0 9.5 6.4 8.7 14.1 14.2 4.3 Other 3.5 3.0 1.9 0.8 3.0 4.0 5.4 1.9 2.9 7.1 7.7 6.8 SOUTH KOREA BRAZIL MEXICO (AIR) *Column percentages may total more than 100% due to multiple responses. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 15

Figure 7 LEISURE RECREATION ACTIVITIES OVERSEAS VISITORS TO CALIFORNIA (2012) Source: ITA In-Flight Survey, 2012 CIC Research, Inc. 16

Table 8 LEISURE-RECREATION ACTIVITIES OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2012) Shopping (87%) followed by sightseeing (83%) were the most common leisure and recreation activities enjoyed by overseas visitors to California in 2012. While dining in restaurants was mentioned as the second most common activity in 2011 (86%), in 2012 the wording to this question was changed to read experience fine dining. This resulted in a response rate of 41%. Visiting National Parks/Monuments increased from 39% in 2011 to 49% in 2012. Visitors from Australia had the highest proportion of respondents who mentioned shopping, sightseeing, or fine dining as a favorite leisure/recreation activity (95%, 94% and 54% respectively.) Visiting National Parks/Monuments was mentioned most frequently by visitors from France (63%) and Germany (62%). 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 6,197,000 635,00 399,000 373,000 164,000 522,000 671,000 190,000 558,000 388,000 183,000 504,000 (Number of Respondents) (6,489) (729) (408) (264) (150) (393) (494) (167) (1,026) (259) (145) (126) Shopping 87.4% 85.8% 88.9% 89.1% 81.2% 95.0% 88.7% 86.4% 82.8% 67.9% 84.4% 87.4% Sightseeing 83.3 88.9 85.7 86.8 72.9 94.1 83.7 76.4 76.7 79.2 71.1 69.2 National Parks/Monuments 49.1 58.4 61.8 63.1 59.5 59.3 40.8 38.3 21.4 35.5 44.6 35.9 Small Towns/Countryside 41.3 54.9 56.8 53.9 39.0 42.6 39.8 35.2 16.2 16.2 25.0 24.4 Experience Fine Dining 40.9 48.4 28.7 43.7 15.0 53.5 47.9 36.4 38.3 18.7 27.7 41.6 Amusement/Theme Parks 37.3 25.0 31.7 36.1 39.4 53.2 40.4 38.4 23.0 39.1 62.5 45.0 Historical Locations 34.4 44.2 41.6 33.2 37.4 50.0 25.2 19.7 16.8 19.2 41.3 23.6 Guided Tours 32.6 45.1 29.5 29.1 34.7 62.2 32.0 18.5 17.1 17.2 23.5 15.4 Art Gallery/Museum 30.0 36.2 24.0 31.1 24.4 46.6 31.3 30.2 14.8 18.0 29.3 16.8 Casinos/Gambling 26.1 27.2 28.1 33.5 32.8 45.6 23.6 18.7 10.8 17.9 25.9 13.2 Concert/Play/Musical 20.5 22.8 18.0 16.6 15.9 45.3 16.4 14.9 8.6 19.2 27.4 13.5 Cultural/Ethnic Heritage 19.9 24.3 19.3 20.6 26.0 26.5 23.4 9.2 8.4 18.8 16.9 17.8 Sites Nightclubs/Dancing 16.7 16.0 16.8 14.9 15.7 26.1 6.9 21.1 6.4 3.6 40.3 14.0 Sporting Event 13.2 14.5 14.3 6.5 3.5 27.9 8.5 9.2 9.1 7.2 17.0 6.8 Visit Am. Indian Comm. 10.3 10.5 13.8 19.9 22.3 15.7 12.7 6.6 1.2 7.8 3.1 4.8 Camping/Hiking 8.7 12.3 16.5 10.6 5.7 8.0 4.7 13.6 3.6 6.6 0.7 5.2 Water Sports 7.8 9.6 10.0 9.7 5.4 14.6 4.8 12.6 4.7 2.8 2.4 7.9 Environ./Eco. Excursions 5.9 5.3 8.8 5.2 11.2 6.6 14.5 3.0 0.5 4.0 7.9 4.3 Golfing/Tennis 5.0 5.1 2.2 3.4 2.1 6.4 3.2 6.1 7.0 10.3 0.5 0.7 Snow Sports 2.1 2.1 1.0-0.5 6.9 0.7 10.2 0.5 1.7 2.0 0.9 Hunting/Fishing 1.6 1.7 1.9 1.2 1.8 1.3 4.0 0.7 1.5 1.0 1.0 - *Multiple response. Only responses one percent or greater are detailed. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 17

Figure 8 ADVANCE TRIP DECISION OVERSEAS VISITORS TO CALIFORNIA / U.S. (2012) Source: ITA In-Flight Survey, 2012 CIC Research, Inc. 18

Table 9 ADVANCE TRIP DECISION OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2012) The median time period for overseas visitors decision to travel was 60 days before the actual trip. In the three previous years, this decision was also made a median of 60 days prior to the trip. Respondents from Australia and Germany had the longest planning time frame, with a median of 120 and 100 days each respectively. ADVANCE TRIP DECISION* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 6,197,000 635,000 399,000 373,000 164,000 522,000 671,000 190,000 558,000 388,000 183,000 504,000 (Number of Respondents) (7,360) (758) (450) (298) (171) (407) (523) (236) (1,326) (297) (168) (157) 14 Days or Less 11.2% 9.6% 10.5% 3.5% 6.2% 7.7% 9.0% 21.5% 16.6% 16.1% 2.7% 13.5% 15-30 Days 20.5 10.7 11.7 12.1 19.2 8.5 29.9 41.8 25.8 39.7 11.5 38.1 31-60 Days 20.1 17.2 12.9 18.8 12.3 14.2 29.0 13.5 24.0 25.2 21.9 22.6 61-120 Days 22.9 24.7 20.5 24.0 22.4 26.5 19.4 19.1 24.9 12.1 44.2 16.0 121-180 Days 12.0 15.1 18.2 18.4 21.4 18.3 7.5 3.1 5.6 5.0 12.8 2.7 181 or More Days 13.3 22.8 26.2 23.3 18.6 24.9 5.4 0.9 3.0 2.0 7.0 7.3 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 No. of Days 99.2 130.4 137.0 136.8 121.9 148.3 70.4 45.8 63.2 51.0 103.1 64.6 Median No. of Days 60.0 90.0 100.0 90.0 90.0 120.0 60.0 30.0 60.0 30.0 90.0 30.0 SOUTH KOREA BRAZIL MEXICO (AIR) *Column percentages may not total 100% due to rounding. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 19

Figure 9 ADVANCE AIRLINE DECISION OVERSEAS VISITORS TO CALIFORNIA / U.S. (2012) Source: ITA In-Flight Survey, 2012 CIC Research, Inc. 20

Table 10 ADVANCE AIRLINE TICKET RESERVATION OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2012) In 2012 an overseas visitor committed to an airline ticket reservation a median of 45 days prior to the actual trip. Almost seven percent of travelers booked their airline reservations six months or more in advance of their trip. Visitors from Germany, France, Italy and Australia made their airline travel reservations a median of 3 months in advance. By contrast, visitors from India booked their airline tickets a median of only 18 days in advance of their U.S. trip. ADVANCE AIRLINE RESERVATIONS* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 6,197,000 635,000 399,000 373,000 164,000 522,000 671,000 190,000 558,000 388,000 183,000 504,000 (Number of Respondents) (7,085) (739) (446) (287) (167) (397) (497) (228) (1,246) (287) (167) (152) 14 Days or less 18.4% 13.4% 14.0% 5.9% 12.0% 9.6% 23.5% 35.0% 27.4% 27.0% 6.1% 33.2% 15-30 Days 27.3 15.5 14.6 19.9 18.5 16.4 42.4 34.3 31.1 49.5 31.7 30.0 31-60 Days 18.5 18.0 17.2 18.3 15.8 20.1 20.3 17.1 22.7 13.7 18.7 19.9 61-120 Days 19.8 24.0 21.6 22.6 28.1 26.5 11.3 11.6 15.4 0.8 33.1 10.0 121-180 Days 9.2 13.0 18.1 21.9 16.2 15.9 2.1 2.1 2.2 1.0 4.5-181 or More Days 6.8 16.2 14.5 11.5 9.4 11.4 0.5-1.1 0.3 5.9 6.8 TOTAL 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Average No. of Days 70.1 103.5 102.2 102.5 88.6 98.1 38.9 33.6 43.1 31.6 74.4 48.6 Median No. of Days 45.0 80.0 90.0 90.0 90.0 90.0 30.0 18.0 30.0 25.0 60.0 30.0 SOUTH KOREA BRAZIL MEXICO (AIR) *Column percentages may not total 100% due to rounding. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 21

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Table 11 ADVANCE INTERNATIONAL AIRLINE TICKET PAYMENT OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2012) In 2012 an overseas visitor paid for their international airline ticket a median of 35 days prior to the actual trip. More than five percent of travelers booked their airline reservations six months or more in advance of their trip. Visitors from France 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. ADVANCE AIRLINE PAYMENT* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 6,197,000 635,000 399,000 373,000 164,000 522,000 671,000 190,000 558,000 388,000 183,000 504,000 (Number of Respondents) (6,840) (745) (412) (297) (166) (408) (481) (203) (1,177) (275) (155) (140) 14 Days or less 24.2% 14.8% 13.3% 9.4% 19.5% 14.2% 26.9% 39.5% 36.3% 44.4% 15.6% 30.5% 15-30 Days 25.4 12.9 20.9 20.6 20.8 18.7 45.9 29.9 33.6 33.7 23.5 31.4 31-60 Days 17.5 23.3 19.0 16.7 14.2 17.5 14.2 15.2 15.9 14.9 17.8 19.5 61-120 Days 18.1 24.3 17.6 26.5 22.0 24.6 9.2 12.5 12.1 5.6 31.6 11.4 121-180 Days 9.5 12.5 18.4 17.5 16.9 16.6 3.4 1.8 1.7 0.7 10.9 0.6 181 or More Days 5.3 12.2 10.7 9.3 6.5 8.3 0.4 1.0 0.4 0.7 0.7 6.5 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 No. of Days 66.1 96.6 92.3 95.8 81.4 92.1 37.8 35.6 36.2 29.5 69.5 50.9 Median No. of Days 35.0 60.0 60.0 90.0 60.0 60.0 30.0 20.0 30.0 20.0 60.0 30.0 SOUTH KOREA BRAZIL MEXICO (AIR) *Column percentages may not total 100% due to rounding. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. 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 (2012) In 2012, 32% 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 cannot be compared with previous years due to a change in the format of the question. Visitors from Australia and Italy reported the highest use of travel agents in booking their air trip (56% and 50% respectively). Visitors from the UK reported the highest use of booking directly with the airline (43%), while visitors from Mexico (air) (35%), Brazil (33%), and France (30%) reported the highest use of an Internet booking service to make airline reservations. In comparison, when making lodging reservations, 29% of visitors to California made use of an Internet booking service, 20% contacted the lodging establishment directly, and 15% used a travel agency office. Visitors from Brazil (45%) reported the highest proportion who booked their lodging via an Internet booking service. Visitors from Australia reported the highest proportion who booked directly with the lodging establishment (31%), while visitors from Australia (33%) and Italy (32%) 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 6,197,000 635,000 399,000 373,000 164,000 522,000 671,000 190,000 558,000 388,000 183,000 504,000 (Number of Respondents) (7,633) (790) (475) (313) (177) (414) (541) (247) (1,358) (302) (171) (168) Travel Agency Office 32.3% 20.5% 30.6% 22.6% 50.0% 55.5% 23.3% 29.8% 43.2% 29.6% 19.7% 24.0% Directly with the Airline 27.9 42.5 27.9 31.4 16.9 28.4 25.5 15.9 21.9 12.3 34.2 31.2 Internet Booking Service 23.8 18.1 28.1 30.2 21.9 18.8 20.8 17.7 14.9 26.6 33.1 34.6 Corporate Travel Dept. 13.3 9.6 13.0 13.5 3.1 4.8 25.4 41.4 15.0 12.3 8.8 7.9 Tour Operator/Travel Club 8.1 11.5 4.7 6.7 15.7 4.0 9.8 8.3 3.7 19.6 18.6 4.3 Other 1.3 1.2 1.8 0.3 0.6 0.3 1.7 1.6 2.9 0.5 1.2 2.4 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% MEANS OF BOOKING LODGING (Number of Respondents) (7,339) (782) (455) (304) (165) (410) (495) (232) (1,326) (290) (164) (158) Yes, Booked by** 69.7% 74.0% 69.8% 65.0% 72.2% 85.3% 73.0% 52.4% 74.1% 56.4% 72.7% 51.3% Internet Booking Service 29.3% 23.8% 27.4% 31.7% 27.1% 38.0% 25.4% 18.6% 23.0% 28.7% 44.8% 23.9% The Lodging Establish. 20.2 27.7 20.5 17.0 10.4 30.9 13.4 16.2 15.2 9.2 20.0 8.5 Travel Agency Office 15.0 12.8 19.8 12.7 32.2 33.1 11.7 3.0 21.5 4.6 13.1 6.3 Corporate Travel Dept. 8.1 7.3 8.1 6.1 1.0 2.6 17.9 20.2 11.2 7.2 2.6 8.0 Tour Operator/Travel Club 4.7 8.5 3.4 4.2 8.1 4.3 7.5 0.9 3.0 6.9 6.7 5.3 Other 1.8 1.5 2.3 1.2-0.7 3.5 1.7 3.4 0.8 0.7 0.3 No 30.3% 26.0% 30.2% 35.0% 27.8% 14.7% 27.0% 47.6% 25.9% 43.6% 27.3% 48.7% *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, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 25

Figure 10 TRAVEL INFORMATION SOURCES OVERSEAS VISITORS TO CALIFORNIA / U.S. (2012) Source: ITA In-Flight Survey, 2012 CIC Research, Inc. 26

Table 13 U.S. TRIP INFORMATION SOURCES OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2012) Trip information sources used by overseas travelers to California in 2012 to plan their trip, consisted of calling the airlines directly (43%), use of an online travel agency (30%), followed by a personal recommendation and a travel agency office (27% each respectively). Results cannot be compared with those from previous years as some of the categories presented in 2012 are different to those from prior years. Use of a travel guide (15%) and corporate travel department (14%) rounded out the top information sources. Travelers from Brazil, and the U.K. (57%and 56% 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), Australia, and Brazil (40%, 39% and 39% respectively). Use of a personal recommendation as a source of trip information was greatest among visitors from Brazil (40%), while use of a travel agency office was greatest among visitors from Australia (54%). INFORMATION SOURCES* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 6,197,000 635,000 399,000 373,000 164,000 522,000 671,000 190,000 558,000 388,000 183,000 504,000 (Number of Respondents) (7,557) (789) (470) (304) (176) (410) (537) (243) (1,347) (297) (170) (167) Airline 42.8% 55.9% 39.1% 38.3% 29.8% 46.6% 38.1% 38.8% 37.6% 23.8% 57.0% 43.3% Online Travel Agency 30.3 32.2 34.9 29.1 28.6 38.9 19.3 20.8 17.4 28.2 38.6 39.6 Personal Recommendation 27.2 22.9 31.2 26.6 21.6 29.3 32.1 26.2 15.5 26.7 40.0 27.3 Travel Agency Office 27.1 21.9 30.9 21.9 42.8 53.8 15.6 26.2 37.7 18.6 18.1 16.7 Travel Guide 14.5 15.8 24.6 21.2 18.0 16.5 9.9 7.7 13.0 7.4 19.0 11.1 Corporate Travel Dept. 13.8 11.0 18.6 13.7 6.8 7.9 21.6 35.8 9.3 13.4 12.7 8.6 Government Travel Office 8.3 4.6 8.7 7.3 17.4 6.0 5.5 7.9 5.1 3.8 22.1 21.5 Tour Operator/Travel Club 8.2 13.1 5.5 7.7 12.9 6.6 6.8 13.9 4.5 18.7 8.7 8.9 SOUTH KOREA BRAZIL MEXICO (AIR) *Column percentages may total more than 100% due to multiple responses. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. 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 (2012) As a result of the change in wording from the 2011 to the 2012 survey, data cannot be compared with prior years data. Three-quarters (76%) of overseas visitors to California used a paid ticket, while 5% used a discount/group fare, and almost 5% used a frequent flier award ticket. Visitors from Australia reported the highest use of a paid fare (86%), while visitors from France reported the highest use of a frequent flier award ticket (8%), and visitors from South Korea and China reported the highest use of a discount/group fare (14% and 13% respectively). Sixteen percent (16%) 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 2012 survey, both prepaid airfare and prepaid accommodations needed to be included at a minimum. As a result of the change in wording from the 2011 survey, data cannot be compared with prior years data. Visitors from China took the greatest advantage of all inclusive tour packages. On the other hand, visitors from India and Brazil used packages the least. TYPE OF AIRLINE TICKET* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA 29 CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 6,197,000 635,000 399,000 373,000 164,000 522,000 671,000 190,000 558,000 388,000 183,000 504,000 (Number of Respondents) (6,962) (737) (425) (270) (154) (390) (477) (224) (1,296) (283) (154) (139) Paid Ticket 76.1% 80.3% 82.7% 75.6% 81.8% 86.4% 72.1% 85.4% 62.8% 64.8% 72.4% 60.4% Discount/Group Fare 5.0 1.3 2.1 6.1 0.2 1.4 13.1 0.9 9.1 13.8 5.5 2.6 Frequent Flyer Award Ticket 4.8 5.4 5.3 7.6 4.0 6.1 2.6 1.5 3.4 1.3 6.3 3.3 Paid Upgrade 3.4 4.6 1.1 1.9 1.1 1.8 2.8 0.8 9.4 2.7 3.9 1.9 Non-Revenue 1.6 1.9 0.9 1.2-1.3 1.2 1.4 1.3 1.2 2.7 4.1 Frequent Flyer Upgrade 1.1 1.8 0.8-2.0 0.6 0.4 1.6 1.8 1.6 2.7 2.0 Don't Know 11.4 7.8 10.3 8.9 13.6 3.8 11.0 9.2 15.9 20.8 17.2 27.0 USE OF PREPAID PACKAGE (Number of Respondents) (7,475) (786) (463) (298) (172) (411) (520) (233) (1,352) (297) (168) (157) YES** 15.6% 17.2% 10.7% 18.7% 22.8% 12.3% 30.1% 6.3% 21.4% 20.4% 6.5% 7.9% Bus/Coach 6.8 4.8 4.0 6.7 9.3 8.0 14.9 1.9 9.8 17.1 1.8 2.8 Attract./Events/Entertain. 6.7 5.7 4.1 5.5 7.7 7.4 22.0 1.3 7.1 10.2 0.6 1.7 Meals 6.4 4.4 3.1 7.5 5.8 3.5 18.2 4.4 7.6 16.2 2.3 2.4 Guided Tours 6.1 4.9 2.7 7.5 5.7 4.7 18.0 1.0 6.6 13.9 0.2 1.8 Tour Guide for Entire Trip 4.6 2.4 3.1 5.6 7.2 1.5 14.3 0.8 5.0 12.9 0.4 1.1 Rental Car 4.4 7.4 3.4 9.9 9.3 2.0 10.1 1.9 0.9 1.0 2.3 - Airfare & Accom. Only 2.9 3.2 2.2 2.2 3.2 1.3 3.2 1.5 7.1 0.3 1.9 4.9 Cruise 1.4 2.3 0.2 1.0 0.5 1.1 4.4 0.3 1.1 0.8-1.6 Recreation 1.1 1.2 0.2 0.3-0.4 4.9 1.0 1.3 0.4-1.8 Rail Tickets 0.9 1.8 0.5 - - 0.6 1.4 0.2 2.8 2.4 - - NO 84.4% 82.8% 89.3% 81.3% 77.2% 87.7% 69.9% 93.7% 78.6% 79.6% 93.5% 92.1% *Column percentages may not total 100% due to multiple responses. **Multiple response. Includes all package combinations. Each category not mutually exclusive. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. SOUTH KOREA BRAZIL MEXICO (AIR)

Figure 11 TRAVEL PARTY SIZE OVERSEAS VISITORS TO CALIFORNIA / U.S. (2012) Source: ITA In-Flight Survey, 2012 CIC Research, Inc. 30

Table 15 TRAVEL PARTY SIZE OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2012) The mean total party size for all overseas travelers in 2012 was 1.6 persons. Overall, 92% of overseas travel parties were adults only and eight percent were adults traveling with children. The greatest proportion of visitors who reported traveling with children was from France (12%) and Australia (11%). TRAVEL PARTY SIZE COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 6,197,000 635,000 399,000 373,000 164,000 522,000 671,000 190,000 558,000 388,000 183,000 504,000 (Number of Respondents) (7,694) (797) (476) (311) (178) (412) (545) (250) (1,392) (304) (172) (168) Adults Only 91.7% 94.6% 90.9% 88.0% 89.7% 88.8% 90.0% 97.0% 92.8% 92.2% 90.9% 90.9% Adults and Children 8.3 5.4 9.1 12.0 10.3 11.2 10.0 3.0 7.2 7.8 9.1 9.1 TOTAL 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% SOUTH KOREA BRAZIL MEXICO (AIR) Average Total Party Size 1.6 1.6 1.6 1.7 1.8 1.8 2.1 1.2 1.7 1.7 1.5 1.4 Median Total Party Size 1.0 1.0 1.0 1.0 2.0 2.0 1.0 1.0 1.0 1.0 1.0 1.0 ADULTS ONLY (Number of Respondents) (6,818) (730) (419) (256) (157) (353) (470) (236) (1,288) (283) (140) (139) Average Adult Party Size 1.5 1.5 1.4 1.4 1.6 1.6 1.8 1.2 1.5 1.6 1.3 1.2 Median Adult Party Size 1.0 1.0 1.0 1.0 2.0 2.0 1.0 1.0 1.0 1.0 1.0 1.0 ADULTS AND CHILDREN (Number of Respondents) (876) (67)* (57)* (55)* (21)* (59)* (75)* (14)* (104) (21)* (32)* (29)* Average Party Size 3.6 3.5 3.6 3.8 3.3 3.8 4.0 3.8 3.3 3.1 3.7 3.8 Median Party Size 3.0 3.0 3.0 4.0 3.0 4.0 3.0 4.0 3.0 3.0 4.0 4.0 *Caution - Small sample size. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 31

Figure 12 GENDER OF OVERSEAS VISITORS OVERSEAS VISITORS TO CALIFORNIA / U.S. (2012) Source: ITA In-Flight Survey, 2012 CIC Research, Inc. 32

Table 16 GENDER AND AGE OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2012) Almost six in ten (59%) overseas travelers to California were adult males, and four in ten (41%) were adult females. The average age of traveling adult males was 41 years, versus 38 years for traveling adult females. GENDER AND AGE OF VISITOR* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 6,197,000 635,000 399,000 373,000 164,000 522,000 671,000 190,000 558,000 388,000 183,000 504,000 (Number of Respondents) (7,106) (750) (435) (278) (161) (379) (487) (229) (1,316) (292) (158) (147) MALE ADULTS 58.7% 55.1% 56.8% 54.1% 55.9% 48.2% 60.0% 78.7% 71.6% 52.5% 63.2% 51.5% 18-24 Years 4.9 5.3 4.3 5.8 5.6 6.2 4.7 3.3 3.1 4.1 10.0-25 - 34 Years 15.7 12.1 15.8 11.6 20.6 11.3 20.2 31.0 11.5 11.9 23.4 20.1 35-54 Years 27.5 22.6 27.2 27.9 24.0 17.6 30.1 32.7 40.7 27.5 24.3 19.4 55 + Years 10.6 15.0 9.6 8.8 5.7 13.2 5.1 11.7 16.3 8.9 5.5 12.1 Average Male Age 41.3 44.2 41.3 40.8 37.3 43.1 38.1 38.7 45.3 41.0 35.8 42.2 Median Male Age 40.0 44.0 40.0 40.0 35.0 44.0 36.0 35.0 45.0 41.0 33.0 39.0 SOUTH KOREA BRAZIL MEXICO (AIR) FEMALE ADULTS 41.3% 44.9% 43.2% 45.9% 44.1% 51.8% 40.0% 21.3% 28.4% 47.5% 36.8% 48.5% 18-24 Years 7.0 7.3 11.2 9.9 6.5 9.5 9.2 2.0 2.3 4.9 3.7 5.0 25-34 Years 13.4 11.9 17.1 14.8 18.6 12.8 12.2 9.3 6.9 23.7 16.1 8.1 35-54 Years 14.2 14.1 10.3 12.3 12.5 19.4 14.4 6.7 13.3 16.2 12.4 21.0 55 + Years 6.7 11.7 4.7 8.9 6.5 10.0 4.2 3.4 5.9 2.8 4.4 14.4 Average Female Age 38.3 42.0 34.0 38.3 37.4 40.0 35.3 36.6 42.8 34.9 36.3 45.1 Median Female Age 35.0 40.0 30.0 31.0 31.0 38.0 33.0 33.0 41.0 31.0 34.0 46.0 *Column percentages may not total to 100% due to rounding. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 33

Figure 13 INCOME PROFILE OF OVERSEAS VISITORS OVERSEAS VISITORS TO CALIFORNIA / U.S. (2012) Source: ITA In-Flight Survey, 2012 CIC Research, Inc. 34

Table 17 ANNUAL HOUSEHOLD INCOME OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2012) The mean household income for overseas visitors to California in 2012 was $102,600, up from $96,500 in 2011 and $96,200 in 2010. During 2012 visitors from Japan ($142,200), Australia ($127,000), and the U.K. ($125,500) reported the highest annual average income. Visitors from India ($62,200), Italy ($62,300), and Mexico (air) ($63,100) reported the lowest annual household income. ANNUAL HOUSEHOLD INCOME* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 6,197,000 635,000 399,000 373,000 164,000 522,000 671,000 190,000 558,000 388,000 183,000 504,000 (NUMBER OF RESPONDENTS) (4,890) (495) (213) (166) (85)* (247) (372) (165) (990) (200) (110) (98)** Under $20,000 13.7% 3.2% 11.0% 13.4% 9.1% 3.0% 24.0% 32.9% 5.6% 14.0% 21.8% 44.6% $20,000 - $59,999 25.7 19.1 19.8 31.2 50.2 15.2 41.1 39.6 11.0 37.3 21.2 27.3 $60,000 - $99,999 22.6 31.3 29.1 30.8 23.1 26.0 15.3 12.0 22.7 26.6 15.7 9.7 $100,000 - $139,999 15.5 14.9 20.7 10.1 7.3 23.4 6.8 7.1 27.7 11.5 12.1 4.6 $140,000 - $179,999 8.3 14.4 8.1 5.8 6.2 9.1 7.2 2.0 10.8 6.0 7.3 1.7 $180,000 and over 14.4 17.1 11.3 8.6 4.1 23.3 5.4 6.3 22.3 4.6 21.9 12.1 TOTAL 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% SOUTH KOREA BRAZIL MEXICO (AIR) Average Annual Income $102,600 $125,500 $98,400 $81,600 $62,300 $127,000 $66,800 $62,200 $142,200 $72,200 $100,300 $63,100 Median Annual Income $77,300 $94,100 $90,100 $67,600 $50,000 $104,700 $47,300 $36,400 $114,600 $55,200 $69,800 $25,000 *Column percentages may not total to 100% due to rounding. **Caution - Small sample size. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 35

Figure 14 TOTAL NIGHTS IN THE U.S. OVERSEAS VISITORS TO CALIFORNIA / U.S. (2012) Source: ITA In-Flight Survey, 2012 CIC Research, Inc. 36

Table 18 NIGHTS AWAY FROM HOME / FIRST INTERNATIONAL TRIP OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2012) Overseas visitors to California in 2012 stayed an average of 22 nights in the U.S. and 11 nights in California (the same as in 2011). Nationalities varied in their average length of U.S. trip. Similar to results from 2011, visitors from Mexico (air) and Japan spent the least amount of time in the U.S. (13 nights and 14 nights respectively), while visitors from Australia and Japan spent the least amount of time in California (8 nights each). Visitors from India and Brazil spent the most time in the U.S. (36 and 34 nights respectively), while visitors from India spent the most amount of time in California (21 nights). Approximately one-quarter (26%) of overseas visitors to California were on their first international trip. Visitors from China (54%) 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 6,197,000 635,000 399,000 373,000 164,000 522,000 671,000 190,000 558,000 388,000 183,000 504,000 (Number of Respondents) (7,685) (798) (475) (310) (176) (416) (549) (240) (1,393) (304) (170) (160) Average No. Nights 21.8 17.9 22.7 19.9 19.3 22.6 30.9 36.2 13.5 19.6 34.0 12.8 Median No. Nights 14.0 14.0 17.0 14.0 15.0 19.0 13.0 17.0 6.0 8.0 14.0 7.0 SOUTH KOREA BRAZIL MEXICO (AIR) NIGHTS IN CALIFORNIA (Number of Respondents) (6,739) (734) (411) (269) (149) (388) (460) (182) (1,305) (236) (151) (124) Average Nts. in Dest. 11.3 10.6 11.5 12.8 10.8 7.9 13.8 20.6 8.2 10.3 11.7 10.6 Median Nts. in Dest. 7.0 8.0 7.0 7.0 7.0 7.0 5.0 8.0 4.0 5.0 7.0 6.0 FIRST INTERNATIONAL TRIP (Number of Respondents) (6,778) (755) (420) (269) (151) (385) (452) (217) (1,221) (264) (152) (133) Yes 26.3% 12.2% 28.0% 31.1% 38.0% 37.3% 54.1% 25.3% 13.0% 40.7% 17.8% 11.6% No 73.7 87.8 72.0 68.9 62.0 62.7 45.9 74.7 87.0 59.3 82.2 88.4 Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 37

Figure 15 PORT OF ENTRY OF OVERSEAS VISITORS OVERSEAS VISITORS TO CALIFORNIA (2012) Source: ITA In-Flight Survey, 2012 CIC Research, Inc. 38

Table 19 PORT OF ENTRY OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2012) A high ratio of California ports of entry is expected for overseas visitors to the State. California visitors in 2012 (69%) reported U.S. entry either through Los Angeles (43%) or San Francisco (26%). These results were similar to 2011 (67%) and 2010 (66%). PORT OF ENTRY* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 6,197,000 635,000 399,000 373,000 164,000 522,000 671,000 190,000 558,000 388,000 183,000 504,000 (Number of Respondents) (7,739) (801) (478) (313) (180) (416) (551) (251) (1,394) (305) (172) (169) Atlanta, GA 2.0% 2.5% 4.2% 0.8% 2.5% - 0.6% 1.8% 0.6% 0.8% 8.7% 0.5% Chicago, IL 3.0 2.2 3.4 3.5 1.4 0.2% 3.6 9.1 1.0 1.2 2.9 - Dallas/Ft. Worth, TX 1.6 1.2 2.2 1.5-0.8 0.1 2.3 0.3 0.7 13.2 2.8 Detroit, MI 0.5 0.1 2.1 1.4 - - 0.2 0.9 0.5 1.6 0.5 - Honolulu, HI 1.5 0.4-0.9-4.5 3.6-4.8 0.7 - - Houston, TX 1.0 0.4 1.0 0.5 - - - 1.8 - - 6.5 4.7 Las Vegas, NV 2.2 11.6 4.1 1.6 0.3-0.3 - - 1.4 1.9 1.0 Los Angeles, CA 43.1 34.3 30.6 47.1 36.2 79.0 46.1 22.0 51.0 44.5 20.4 58.9 Miami, FL 2.8 0.8 0.3-3.3 - - 0.2 0.3-21.5 - New York, NY 5.8 2.6 3.3 7.0 19.1 2.5 6.9 5.6 0.5 2.5 6.2 0.1 Newark, NJ 1.6 2.0 2.9 1.2 3.8 0.4 0.1 2.0 - - 1.6 - Orlando, FL 0.5 0.5-0.1-0.1-0.5 - - 11.1 - San Francisco, CA 26.1 29.1 35.0 24.2 25.0 11.5 28.2 46.5 31.3 30.3 4.0 19.7 Seattle, WA 1.6 0.6 1.7 2.4 1.7-2.2 1.9 2.2 5.4 - - Washington, DC 1.4 1.3 2.1 1.3-0.4 1.6 3.7 0.2-1.2 - Other 5.2 10.3 6.8 6.3 6.6 0.7 6.5 1.8 7.3 10.9 0.3 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% SOUTH KOREA BRAZIL MEXICO (AIR) *Column percentages may not total to 100% due to rounding. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 39

Figure 16 OVERNIGHT ACCOMMODATIONS OVERSEAS VISITORS TO CALIFORNIA / U.S. (2012) Source: ITA In-Flight Survey, 2012 CIC Research, Inc. 40

Table 20 OVERNIGHT ACCOMMODATIONS OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2012) Almost eight in ten (78%) California visitors chose to stay in a hotel/motel during their stay this year, compared with 79% in 2011. Visitors from Japan and Australia (86% respectively), followed by Italy and Brazil (84% respectively) reported the highest use of hotels/ motels. Visitors from Mexico (air) reported the lowest hotel/motel usage (51%). The highest use of private homes was found among visitors from Mexico (air) (41%), followed by India (36%). TYPE OF ACCOMMODATIONS* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 6,197,000 635,000 399,000 373,000 164,000 522,000 671,000 190,000 558,000 388,000 183,000 504,000 (Number of Respondents) (6,264) (697) (378) (260) (133) (366) (372) (166) (1,197) (231) (142) (119) SOUTH KOREA BRAZIL MEXICO (AIR) Hotel / Motel 77.9% 80.1% 77.6% 77.1% 84.0% 85.9% 68.2% 64.9% 85.6% 81.1% 83.5% 51.4% Average Nights in Dest. 7.3 7.2 6.9 7.2 8.8 7.2 7.3 12.7 5.9 7.1 7.0 5.8 Median Nights in Dest. 5.0 6.0 5.0 5.0 7.0 6.0 5.0 6.0 4.0 5.0 6.0 5.0 Private Home 26.5% 25.6% 26.9% 28.2% 19.1% 15.1% 27.4% 36.4% 18.3% 22.4% 22.4% 41.3% Average Nights in Dest. 19.0 16.4 18.4 24.2 18.8 9.1 28.8 32.0 14.6 17.9 24.6 18.8 Median Nights in Dest. 10.0 11.0 9.0 11.0 9.0 6.0 12.0 10.0 8.0 12.0 11.0 10.0 Other 6.1% 6.4% 12.4% 11.9% 3.7% 5.7% 6.8% 5.0% 2.0% 3.3% 3.4% 9.6% *Column percentages may not total to 100% due to multiple responses. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 41

Figure 17 TRANSPORTATION IN THE U.S. OVERSEAS VISITORS TO CALIFORNIA / U.S. (2012) Source: ITA In-Flight Survey, 2012 CIC Research, Inc. 42

Table 21 TRANSPORTATION IN THE U.S. OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2012) Transportation in the U.S. used by visitors to California in 2012 was predominantly airlines (45%), rented autos (43%), company/private auto (39%), city subway/tram/bus (33%), and taxi/cab/limousines (31%). Visitors from Australia made the highest use of airlines (74%) as well as city subway/tram/bus (46%) and taxi/cab/limousines (49%) to travel around the U.S. Visitors to California from Germany, France and Brazil (61%, 56%, and 53% respectively) made the highest use of a rented auto, while The highest use of a company or private auto was among visitors from China (52%). 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 6,197,000 635,000 399,000 373,000 164,000 522,000 671,000 190,000 558,000 388,000 183,000 504,000 (Number of Respondents) (6,839) (740) (431) (280) (155) (386) (468) (185) (1,248) (271) (157) (128) Air Travel in U.S. Cities 45.2% 31.1% 39.6% 31.3% 52.8% 73.7% 52.2% 54.1% 35.2% 25.4% 59.6% 27.3% Rented Auto 43.1 49.4 61.2 56.4 49.4 40.7 26.0 24.1 31.4 34.5 52.9 19.4 Company or Private Auto 38.7 36.5 34.1 32.9 32.5 36.8 51.6 28.7 33.5 35.9 33.6 34.7 City Subway/Tram/Bus 32.5 32.7 38.3 30.2 39.0 46.2 23.6 32.1 26.7 26.8 24.8 9.4 Taxi/Cab/Limousine 31.4 38.5 28.0 22.2 33.9 49.4 21.4 44.1 39.5 14.0 19.0 35.5 Bus between Cities 15.5 10.9 15.0 11.6 20.5 23.6 12.9 22.6 15.6 26.3 9.5 21.3 Ferry/River Taxi/Short Scenic Cruise 10.7 17.5 12.1 12.5 20.8 18.9 6.1 10.1 5.0 6.0 3.4 9.4 Railroad between Cities 7.3 6.5 5.2 5.1 2.2 15.6 5.1 8.3 9.1 2.8 2.9 0.6 Rented Bicycle/ Motorcycle/Moped 4.3 4.1 6.0 4.5 3.4 7.4 2.7 2.2 3.6 0.8 3.0 2.2 Cruise Ship/River Boat 1+ Nights 3.4 6.2 3.4 3.2 2.6 7.3 1.0 2.7 0.6 1.8 2.0 3.1 Motor Home/Camper 2.2 3.2 7.7 1.5 0.7 1.0 0.4 3.8 0.2 0.3 0.6 - SOUTH KOREA BRAZIL MEXICO (AIR) *Column percentages may not total to 100% due to multiple responses. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 43

Figure 18 PAYMENT METHOD FOR TRIP EXPENSES OVERSEAS VISITORS TO CALIFORNIA / U.S. (2012) Source: ITA In-Flight Survey, 2012 CIC Research, Inc. 44

Table 22 PAYMENT METHODS FOR TRIP EXPENSES OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2012) The question concerning payment methods for trip expenses used by visitors to California in 2012 was different to that in 2011. As a result, responses from previous years cannot be compared with the current year. Purchases using a credit card (43%) followed by cash from home/travelers checks (28%) were the predominant forms of trip expense payment methods. These were followed by cash advance/withdrawal using a credit card (16%). Visitors to California in 2012 from Germany (58%) followed by visitors from China (52%) were most likely to use a credit card as a payment method. On the other hand, cash from home/travelers checks was most likely to be used by visitors from South Korea (44%). Visitors from South Korea and India had the highest propensity to use a cash advance/withdrawal using a credit card (26% and 24% respectively), while visitors from Australia had the highest propensity to use a debit card (16%) as well as a cash advance/withdrawal using a debit card (15%). 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 6,197,000 635,000 399,000 373,000 164,000 522,000 671,000 190,000 558,000 388,000 183,000 504,000 (Number of Respondents) (5,729) (581) (327) (226) (127) (314) (382) (129) (1,167) (226) (122) (110) Purchases Using Credit Card 42.8% 38.3% 58.3% 35.1% 48.3% 35.2% 52.3% 41.9% 49.8% 25.8% 43.3% 33.9% Cash from Home/Travelers Checks 28.4 29.8 16.2 28.1 26.9 20.9 31.5 19.8 32.4 44.0 30.4 34.8 Cash Adv./Withdrawal Using Credit Card 16.1 11.7 20.0 20.5 16.9 13.0 10.3 23.6 16.0 25.8 12.7 14.0 Cash Adv./Withdrawal Using Debit Card 6.5 10.2 3.4 8.1 2.9 15.3 1.1 10.2 1.1 3.5 2.6 8.3 Purchases Using Debit Card 6.3 10.0 2.0 8.2 5.0 15.6 4.8 4.5 0.8 0.8 11.1 9.0 SOUTH KOREA BRAZIL MEXICO (AIR) *Column percentages may not total to 100% due to rounding. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 45

Figure 19 TRIP EXPENDITURES OVERSEAS VISITORS TO CALIFORNIA / U.S. (2012) Source: ITA In-Flight Survey, 2012 CIC Research, Inc. 46

Table 23 TRIP EXPENDITURES OVERSEAS AND MEXICAN VISITORS TO CALIFORNIA (2012) Overseas visitors to California reported spending approximately $4,018 per capita on their entire trip away from home. The method used for calculating expenditures in 2012 is based on per person expenditures and uses different weighting factors than prior years. Thus, results are not comparable with previous years. Visitors from Australia recorded the highest total trip spending ($5,830). COUNTRY OF RESIDENCE OF VISITORS AVERAGE PER VISITOR TRIP EXPENDITURES TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 6,197,000 635,000 399,000 373,000 164,000 522,000 671,000 190,000 558,000 388,000 183,000 504,000 TOTAL TRIP $4,018 $3,446 $3,254 $2,755 $2,448 $5,830 $5,085 $5,592 $4,013 $3,351 $4,659 $1,814 (Number of Respondents) (4,850) (558) (285) (201) (105) (295) (311) (113) (880) (168) (109) (91)** INCLUSIVE TOUR PRICE $3,404 $3,409 $2,874 $2,811 $4,026 $5,482 $3,448 $4,955 $3,540 $2,307 $3,603 $1,250 (Number of Respondents) (847) (96)** (34)** (49)** (29)** (37)** (146) (14)** (202) (33)** (13)** (7)** INTERNATIONAL AIRFARE $1,908 $1,745 $1,585 $1,238 $1,210 $2,630 $1,978 $1,797 $2,617 $1,576 $1,500 $989 (Number of Respondents) (2,965) (369) (203) (112) (58)** (214) (115) (68)** (466) (73)** (73)** (61)** EXPENDITURE IN U.S.* $2,110 $1,701 $1,669 $1,518 $1,238 $3,200 $3,106 $3,796 $1,396 $1,775 $3,160 $825 (Per Day) $97 $95 $73 $76 $64 $141 $100 $105 $103 $90 $93 $64 (Number of Respondents) (3,275) (385) (195) (141) (66)** (200) (150) (73)** (603) (115) (70)** (59)** MEAN ITEMIZED EXPENDITURES IN U.S.* (Number of Respondents) (3,275) (385) (195) (141) (73)* (200) (150) (73)** (603) (115) (70)** (59)** LODGING IN U.S. $641 $636 $658 $500 $246 $935 $665 $1,289 $489 $692 $597 $175 AIR TRANSPORT IN U.S. $121 $43 $53 $129 $40 $226 $186 $297 $41 $86 $86 $25 ENTERTAINMENT $258 $268 $211 $221 $153 $500 $275 $317 $116 $110 $605 $157 FOOD,BEVERAGES $381 $422 $344 $294 $385 $601 $315 $526 $253 $316 $507 $120 GOUND TRANS. IN U.S. $134 $76 $90 $122 $79 $144 $163 $464 $101 $168 $278 $44 GIFTS, SOUVENIRS $476 $186 $243 $215 $289 $706 $1,256 $733 $326 $274 $1,017 $273 OTHER $65 $45 $54 $13 $34 $52 $144 $149 $28 $93 $41 $6 AVERAGE NIGHTS IN U.S. 21.8 17.9 22.7 19.9 19.3 22.6 30.9 36.2 13.5 19.6 34.0 12.8 AVERAGE NIGHTS IN CALIF. 11.3 10.6 11.5 12.8 10.8 7.9 13.8 20.6 8.2 10.3 11.7 10.6 MEDIAN NIGHTS IN CALIF. 7.0 8.0 7.0 7.0 7.0 7.0 5.0 8.0 4.0 5.0 7.0 6.0 SPENDING /VISITOR IN CA (est).) $1,096 $1,007 $840 $973 $691 $1,114 $1,380 $2,163 $845 $927 $1,088 $678 SOUTH KOREA BRAZIL MEXICO (AIR) *Overseas visitors on exclusive tour packages were excluded. **Caution - Small sample size. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 47

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Table 24 EXPENDITURES OVERSEAS AND MEXICAN VISITORS WHO REPORTED ONLY CALIFORNIA DESTINATIONS* (2012) More than four in ten (45%) overseas visitors to California in 2012 did not visit any other state in the U.S. Visitors who only visited California during their U.S. trip reported spending $3,484 per capita on their entire trip away from home, down 16.4% from $4,165 per visitor in 2011. Almost half of their total trip expenditures were in California ($1,542). Average daily California expenses for California only visitors were $89 per day, down 26.1% from $117 per day in 2011. Average daily expenditures for all overseas visitors to California and to the U.S. were $97 and $99 each respectively. AVERAGE PER VISITOR TRIP EXPENDITURES OVERSEAS TRAVELERS WHO ONLY VISITED CALIFORNIA ON THEIR U.S. TRIP ALL OVERSEAS VISITORS TO CALIFORNIA ALL OVERSEAS VISITORS TO THE U.S. TOTAL TRIP $3,484 $4,018 $3,259 (NUMBER OF RESPONDENTS) (2,151) (4,850) (24,497) INCLUSIVE TOUR PRICE $3,308 $3,404 $2,375 (NUMBER OF RESPONDENTS) (278) (847) (4,971) INTERNATIONAL AIRFARE $1,942 $1,908 $1,578 (NUMBER OF RESPONDENTS) (1,336) (2,965) (14,200) EXPENDITURE IN CALIFORNIA $1,542 $2,110 $1,681** PER DAY $89 $97 $99** (NUMBER OF RESPONDENTS) (1,532) (3,275) (16,221) AVERAGE ITEMIZED EXPENDITURES IN CA (NUMBER OF RESPONDENTS) (1,532) (3,275) (16,221) AIR TRANSPORT IN U.S. $49 $121 $80 GROUND TRANSPORT IN U.S. $94 $134 $94 LODGING $515 $641 $459 FOOD, BEVERAGES $273 $381 $315 GIFTS, SOUVENIRS $375 $476 $449 ENTERTAINMENT $139 $258 $198 OTHER $58 $65 $55 AVERAGE NIGHTS IN CALIFORNIA 15.1 11.3 17.0** *Overseas visitors could report up to seven U.S. destinations. **Total expenditure in the U.S./ Average nights in the U.S. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 49

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OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA* (2012) * 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 (2012) UNITED STATES CALIFORNIA ESTIMATED ESTIMATED CALIFORNIA LEISURE 2011/2012 LEISURE 2011/2012 SHARE OF VISITORS PERCENT VISITORS PERCENT VISITORS FROM RESIDENCE OF VISITORS TO THE U.S. CHANGE TO CALIFORNIA CHANGE* THIS COUNTRY EUROPE 9,471,000-4.0% 1,890,000-7.2% 20.0% W. EUROPE 8,990,000-4.2% 1,783,000-8.2% 19.8% Austria 139,000-13.7% 28,000-6.7% 20.1% Belgium 174,000-7.9% 23,000-42.5% 13.2% Denmark 202,000 21.0% 46,000 35.3% 22.8% France 1,101,000-10.6% 294,000-19.2% 26.7% Germany 1,334,000-6.5% 303,000-5.3% 22.7% Ireland 264,000 1.9% 47,000-9.6% 17.8% Italy 599,000-12.0% 139,000-1.4% 23.2% Netherlands 456,000-6.4% 96,000 3.2% 21.1% Norway 200,000 65.3% 29,000 16.0% 14.5% Spain 441,000-26.9% 80,000-33.3% 18.1% Sweden 342,000 2.7% 67,000 11.7% 19.6% Switzerland 367,000-8.3% 84,000-28.8% 22.9% United Kingdom 3,060,000 2.9% 509,000 0.2% 16.6% Other Western Europe 311,000-12.1% 38,000-5.0% 12.2% E. EUROPE 455,000-0.2% 96,000-2.0% 21.1% CARIBBEAN 808,000-1.5% 8,000-69.2% 1.0% 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 2011/2012 LEISURE 2011/2012 SHARE OF VISITORS PERCENT VISITORS PERCENT VISITORS FROM RESIDENCE OF VISITORS TO THE U.S. CHANGE TO CALIFORNIA CHANGE* THIS COUNTRY SOUTH AMERICA 3,440,000 58.3% 239,000 22.6% 6.9% Argentina 529,000 100.4% 44,000 41.9% 8.3% Brazil 1,376,000 34.5% 108,000 0.9% 7.8% Chile 139,000 127.9% 16,000 100.0% 11.5% Colombia 461,000 130.5% 17,000 30.8% 3.7% Ecuador 176,000-0.6% 9,000-35.7% 5.1% Peru 141,000 261.5% 15,000 150.0% 10.6% Venezuela 503,000 23.3% 21,000 75.0% 4.2% Other South America 115,000 * 9,000 12.5% 7.8% CENTRAL AMERICA (Excluding Mexico) 556,000 33.3% 62,000 8.8% 11.2% Costa Rica 118,000 20.4% 5,000-61.5% 4.2% Guatemala 130,000 12900.0% 34,000 -- 26.2% Panama 102,000 537.5% 9,000 800.0% 8.8% Other Central America 206,000-31.8% 14,000-67.4% 6.8% AFRICA 227,000 18.8% 20,000-16.7% 8.8% South Africa, Rep. of 49,000 11.4% 9,000 0.0% 18.4% Other Africa 178,000 21.1% 11,000 10.0% 6.2% OCEANIA 957,000-11.6% 562,000-4.4% 49.5% Australia 966,000 6.0% 464,000-3.9% 48.0% New Zealand 157,000 0.6% 86,000-1.1% 54.8% Note: -- Represents a sample size of less than 50 visitors to California who gave a main purpose of trip, or a response of less than 0.05%. Countries and World Region visitor volumes are independently estimated and may not sum to total visitors. * Large variances may occur due to small sample sizes. 55

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Table 25 (Cont.) UNITED STATES CALIFORNIA ESTIMATED ESTIMATED CALIFORNIA LEISURE 2011/2012 LEISURE 2011/2012 SHARE OF VISITORS PERCENT VISITORS PERCENT VISITORS FROM RESIDENCE OF VISITORS TO THE U.S. CHANGE TO CALIFORNIA CHANGE* THIS COUNTRY ASIA 5,593,000 41.7% 1,061,000-3.4% 19.0% Hong Kong 75,000 5.6% 29,000-17.1% 38.7% India 292,000-1.0% 74,000-9.8% 25.3% Indonesia 45,000 0.0% 24,000-11.1% 53.3% Japan 2,988,000 62.7% 277,000-10.6% 9.3% Korea, South 800,000 38.4% 210,000 5.5% 26.3% Malaysia 36,000 71.4% 25,000 212.5% 69.4% People's Republic of China 734,000 23.8% 353,000 37.9% 48.1% Philippines 100,000-12.3% 39,000-7.1% 39.0% Republic of China (Taiwan) 174,000 20.0% 73,000 0.0% 42.0% Singapore 73,000-27.0% 40,000-21.6% 54.8% Thailand 43,000-10.4% 25,000 25.0% 58.1% MIDDLE EAST 504,000-1.2% 94,000-4.1% 18.7% Israel 163,000 1.2% 24,000-20.0% 14.7% Saudi Arabia 103,000-18.9% 18,000-25.0% 17.5% Turkey 68,000-26.9% 12,000-29.4% 17.6% Other Middle East 170,000 31.8% 40,000 53.8% 23.5% Total Overseas Leisure Visitors 21,815,000 12.3% 4,189,000-1.3% 19.2% (Number of Respondents) (26,166) (4,469) Mexico (Air Travelers Only) 1,416,000 9.3% 384,000 1.1% 27.4% Note: -- Represents a sample size of less than 50 visitors to California who gave a main purpose of trip, or a response of less than 0.05%. Countries and World Region visitor volumes are independently estimated and may not sum to total visitors. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 57

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Table 26 MAIN DESTINATION BY STATE OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2012) California was the main U.S. state destination for three-quarters (74%) of overseas leisure travelers to California in 2012, similar to the proportion from previous years. The highest proportion of leisure travelers, with California as their main destination, was from Mexico (air) (90%), followed by Japan (86%), India and France (85% each respectively). Australia once again reported the lowest proportion of leisure travelers with California as their main destination (48%). This result was up from 41% in 2011. MAIN DESTINATION* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 4,189,000 509,000 303,000 294,000 139,000 464,000 353,000 74,000 277,000 210,000 108,000 384,000 (Number of Respondents) (3,043) (477) (221) (163) (90)** (168) (134) (57)** (411) (102) (85)** (104) California 73.6% 74.9% 73.5% 84.9% 76.2% 47.7% 82.7% 85.4% 86.0% 82.5% 61.9% 90.2% New York 5.9 1.8 1.6 4.3 9.5 16.5 6.8 3.0 0.3 1.8 5.7 - Nevada 3.7 3.7 8.1 3.8 5.3 3.7 0.4-1.2 1.9 19.3 2.6 Hawaiian Islands 4.4 6.2 5.7 3.9 6.0 9.4 1.6-7.6 2.7 - - Florida 2.2 2.6 1.6 0.8-3.6 1.2 0.3 0.1 1.6 1.6 0.2 *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, ITA, Survey of International Air Travelers, 2012 CIC Research, Inc. and the California Travel and Tourism Commission. SOUTH KOREA BRAZIL MEXICO (AIR) 59

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Table 27 MAIN DESTINATION BY STATE OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2012) The most common Metropolitan Statistical Areas (MSAs) visited by overseas leisure travelers to California in 2012 were Los Angeles Long Beach (64%) and San Francisco (53%), followed by San Diego (14%), Anaheim (10%), Salinas, and Riverside-San Bernardino (5% each respectively.) MAIN DESTINATION* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 4,189,000 509,000 303,000 294,000 139,000 464,000 353,000 74,000 277,000 210,000 108,000 384,000 (Number of Respondents) (4,417) (646) (304) (150) (119) (424) (239) (95) (631) (135) (156) (115) Los Angeles-Long Beach MSA 2,664,000 271,000 188,000 188,000 94,000 346,000 276,000 30,000 134,000 147,000 72,000 224,000 (Los Angeles County) 63.6% 53.2% 62.2% 63.9% 67.9% 74.6% 78.2% 40.1% 48.4% 70.2% 66.9% 58.3% SOUTH KOREA BRAZIL 2010-11 MEXICO (AIR) San Francisco MSA 2,224,000 276,000 208,000 192,000 92,000 201,000 152,000 39,000 83,000 108,000 60,000 98,000 (San Francisco-Marin-San Mateo Counties) 53.1% 54.2% 68.5% 65.3% 66.5% 43.3% 43.1% 52.5% 30.0% 51.5% 55.5% 25.5% San Diego MSA 566,000 73,000 55,000 33,000 21,000 59,000 20,000 11,000 48,000 20,000 27,000 21,000 (San Diego County) 13.5% 14.4% 18.0% 11.2% 15.3% 12.8% 5.8% 15.1% 17.4% 9.3% 25.1% 5.4% Anaheim-Santa Ana MSA 415,000 47,000 17,000 15,000 4,000 92,000 10,000 4,000 42,000 14,000 26,000 81,000 (Orange County) 9.9% 9.3% 5.7% 5.0% 2.8% 19.8% 2.9% 4.9% 15.1% 6.7% 24.1% 21.0% Salinas MSA 222,000 65,000 19,000 18,000 8,000 7,000 2,000-3,000 4,000 13,000 4,000 (Monterey County) 5.3% 12.8% 6.3% 6.1% 5.5% 1.6% 0.6% - 1.2% 2.0% 11.9% 1.1% Riverside-San Bernardino MSA 205,000 61,000 30,000 17,000 3,000 12,000 4,000-7,000 <1,000 3,000 7,000 (Riverside-San Bernardino Counties) 4.9% 11.9% 10.0% 5.9% 2.1% 2.6% 1.0% - 2.5% 0.2% 2.4% 1.7% 61

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Table 27 (Cont.) MAIN DESTINATION* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 4,189,000 509,000 303,000 294,000 139,000 464,000 353,000 74,000 277,000 210,000 108,000 384,000 (Number of Respondents) (4,417) (646) (304) (150) (119) (424) (239) (95) (631) (135) (156) (115) Santa Barbara-Lompoc MSA 184,000 38,000 21,000 14,000 7,000 6,000 9,000-5,000 <1,000 9,000 - SOUTH KOREA BRAZIL 2010-11 (Santa Barbara County) 4.4% 7.4% 6.8% 4.6% 4.9% 1.4% 2.5% - 1.7% 0.2% 8.2% - MEXICO (AIR) Sacramento MSA 155,000 38,000 17,000 14,000 <1,000 5,000 2,000 3,000 5,000 5,000 1,000 13,000 (El Dorado-Placer- Sacramento-Yolo Counties) 3.7% 7.4% 5.5% 4.9% 0.3% 1.1% 0.7% 3.8% 1.8% 2.2% 0.8% 3.5% San Jose MSA 138,000 11,000 8,000 6,000 2,000 2,000 18,000 16,000 14,000 13,000 5,000 25,000 (Santa Clara County) 3.3% 2.1% 2.6% 2.2% 1.7% 0.4% 5.2% 21.6% 5.2% 6.0% 4.3% 6.5% Visalia-Porterville MSA 101,000 14,000 22,000 14,000 8,000 1,000-1,000 <1,000 - - - (County) 2.4% 2.8% 7.4% 4.8% 6.1% 0.2% - 0.9% 0.2% - - - *Visitors may report multiple destinations -- percentages are read down the column. Counties with less than a two percent share of the California leisure market were not listed. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 63

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Table 28 TRAVEL COMPANIONS OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2012) The highest proportion of Overseas and Mexican leisure visitors to California were traveling alone (45%), followed by 36% traveling with a spouse/partner and 20% traveling with family/relatives. Visitors from Mexico (air), South Korea and India (68%, 64% and 64% respectively) had the highest proportion of respondents who were traveling alone, while visitors from the U.K. and Italy (51% respectively) had the highest proportion of respondents who were traveling with a spouse/partner. Visitors from France (27%) and China (26%) had the highest proportion of respondents who were traveling with family/relatives. TRAVEL COMPANIONS* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 4,189,000 509,000 303,000 294,000 139,000 464,000 353,000 74,000 277,000 210,000 108,000 384,000 (Number of Respondents) (4,443) (587) (320) (230) (138) (348) (266) (93)** (594) (143) (110) (113) Traveling Alone 45.2% 38.9% 40.4% 40.4% 29.7% 34.9% 37.2% 63.5% 47.9% 63.6% 50.6% 68.1% Spouse 35.6 51.1 36.7 37.2 50.8 45.0 34.8 28.8 25.1 21.4 30.3 18.1 Family/Relatives 19.5 10.7 20.6 26.5 14.0 23.0 25.7 9.8 21.0 17.4 23.9 14.5 Friends 7.7 5.8 11.5 5.3 11.7 7.9 8.7-11.6 5.4 9.1 5.3 Tour Group 0.9 0.9 0.7 1.6-0.4 4.7-1.5 0.9-0.2 Business Associates 0.3 0.1 0.4 0.4-0.2 0.2-1.1 0.6-0.7 SOUTH KOREA BRAZIL 2010-11 MEXICO (AIR) *Column percentages may total more than 100% due to multiple responses. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 65

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Table 29 MAIN PURPOSE OF TRIP OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2012) Overseas leisure visitors to California reported the main purpose of their trip as predominantly vacation/holidays (73%) and, to a lesser extent, visiting friends/relatives (27%). Leisure visitors from Italy and Australia (87% each respectively), followed by Brazil and Germany (83% and 81% respectively) had the highest proportion of visitors whose main purpose was vacation/holidays, while leisure visitors from India (69%) followed by South Korea, Japan and China (38%, 36% and 36 respectively) had the highest proportion of visitors whose main purpose was visiting friends/relatives. MAIN PURPOSE OF TRIP COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 4,189,000 509,000 303,000 294,000 139,000 464,000 353,000 74,000 277,000 210,000 108,000 384,000 (Number of Respondents) (4,469) (587) (322) (230) (139) (350) (271) (94)* (597) (145) (110) (114) Vacation/ Holidays 73.3% 76.9% 81.0% 77.3% 87.1% 87.1% 64.5% 30.8% 64.2% 62.5% 82.6% 70.5% Visit Friends/Relatives 26.7 23.1 19.0 22.7 12.9 12.9 35.5 69.2 35.8 37.5 17.4 29.5 SOUTH KOREA BRAZIL MEXICO (AIR) Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 67

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Table 30 PURPOSE OF TRIP OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2012) More than eight in ten (84%) overseas leisure travelers to California reported they were on vacation/holiday, while 41% reported visiting friends or relatives. This is similar to results from previous years. Leisure travelers from Australia and Brazil (92% each respectively), Germany and France (91% each respectively) recorded the highest proportion of travelers on vacation/holiday in 2012. On the other hand, only 45% of leisure visitors from India reported they were on vacation/holiday. A large proportion of visitors from India (84%) reported coming to California to visit friends and relatives, while only 17% of travelers from Italy reported their purpose was to visit friends and relatives. PURPOSE OF TRIP* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 4,189,000 509,000 303,000 294,000 139,000 464,000 353,000 74,000 277,000 210,000 108,000 384,000 (Number of Respondents) (4,469) (587) (322) (230) (139) (350) (271) (94)** (597) (145) (110) (114) Vacation/ Holidays 83.7% 86.2% 91.4% 90.5% 88.4% 92.2% 71.0% 45.1% 77.2% 75.5% 91.6% 81.3% Visit Friends/Relatives 40.5 33.6 34.7 33.2 17.3 26.3 44.4 83.5 44.2 50.0 32.4 50.0 Education 2.1 1.5 5.0 1.7 1.2 0.8 2.6-3.3 1.8 5.1 1.2 Business 1.5 0.7 1.3 0.3 0.9 1.8 1.9 3.5 1.3 0.6 1.3 3.5 Attend Convention 0.9 0.8 - - - 2.2 1.1-1.2 - - - Other 1.0 0.9 0.3 0.0 0.0 3.5 1.0 1.0 0.6 0.5 1.0 0.0 SOUTH KOREA BRAZIL MEXICO (AIR) *Column percentages may total more than 100% due to multiple responses. ** Caution-Small Sample Size Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 69

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Table 31 LEISURE-RECREATION ACTIVITIES OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2012) Overseas leisure visitors reported a greater participation rate in almost all activities, compared with all overseas visitors to California (Table 8). Shopping (91%) and sightseeing (89%) were the most common leisure and recreation activities of overseas leisure visitors to California in 2012. Categories listed in 2012 were different to those listed in previous years, thus no comparison can be made. 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 4,189,000 509,000 303,000 294,000 139,000 464,000 353,000 74,000 277,000 210,000 108,000 384,000 (Number of Respondents) (3,979) (558) (283) (202) (120) (333) (248) (63)** (511) (131) (98)** (89)** Shopping 90.6% 89.1% 92.5% 91.7% 83.8% 95.9% 91.1% 82.8% 87.1% 70.4% 98.1% 85.5% Sightseeing 89.4 93.6 93.5 89.1 77.5 95.7 87.9 90.4 87.3 87.9 83.1 70.8 National Parks/Monuments 59.1 65.4 73.4 68.9 61.3 61.5 53.2 55.4 24.0 47.0 56.9 36.6 Small Towns/Countryside 47.8 60.3 62.9 56.6 41.2 43.0 44.2 55.4 17.1 21.7 32.9 23.7 Amusement/Theme Parks 43.7 27.1 40.0 38.6 44.1 57.9 55.2 46.1 29.9 50.8 69.5 49.4 Experience Fine Dining 42.1 48.3 24.3 45.4 15.3 53.9 53.3 45.6 35.0 20.4 24.7 38.9 Historical Locations 40.1 48.6 47.3 34.7 43.9 50.2 32.7 41.6 14.7 18.0 44.2 21.0 Guided Tour(s) 39.8 51.4 34.1 34.7 41.5 64.0 43.0 16.0 20.7 20.6 29.5 19.5 Art Galleries/Museums 34.1 37.1 27.4 30.8 24.5 48.8 40.5 47.9 13.8 24.3 29.5 9.8 Casino/Gamble 31.3 30.5 32.7 34.8 36.1 49.6 30.7 20.8 12.2 16.8 31.3 18.0 Cultural/Ethnic Heritage 24.0 27.0 23.8 21.3 27.2 27.0 32.6 17.4 7.3 25.8 22.4 16.5 Sights Concert/Play/Musical 23.6 23.0 17.8 17.0 14.9 48.2 19.9 21.3 10.2 24.6 31.5 9.6 Nightclubbing/Dancing 16.3 13.6 16.2 12.0 14.6 26.1 7.1 12.8 6.0 2.8 34.3 12.2 Sporting Event 13.3 14.3 13.7 7.6 1.6 29.7 5.4 8.6 7.7 8.0 12.5 8.1 American Indian 12.9 12.8 16.4 23.1 26.5 16.4 15.6 3.2 1.7 7.8 5.5 5.7 Communities Camping/Hiking 9.6 13.5 19.3 9.8 4.8 7.3 5.6 7.2 5.6 11.4 1.3 0.9 Water Sports 9.0 9.7 10.8 10.9 4.3 16.0 5.2 7.5 5.8 4.1 0.9 4.7 Environmental/Eco. 6.6 5.9 10.2 5.8 11.6 7.4 17.6 9.2 0.8 6.3 4.5 5.0 Excursions Golfing/Tennis 4.8 5.4 2.1 2.7 1.1 6.9 2.8 5.5 5.5 8.2 1.0 0.9 Snow Sports 2.2 2.3 - - 0.6 7.1 0.7 3.4 0.2 2.8 1.7 1.2 Hunting/Fishing 1.3 1.7 1.7 1.5 2.2 1.1 2.3 0.3 0.7 0.9 1.7 - *Multiple response. Only responses greater than one percent are detailed. **Caution Small sample size. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 71

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Table 32 ADVANCE TRIP DECISION OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2012) Overseas leisure visitors to California reported a median advance trip decision period of 90 days, 30 days longer than the 60 days for all overseas visitors to California (Table 9). The median advance airline ticket reservation period for leisure visitors was 60 days in 2012, 2011, as well as in 2010, compared with a median of 45 days for all overseas visitors to California (Table 10). In 2012 leisure visitors from South Korea (40 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 45 days respectively). Leisure visitors from Germany reported the longest advance trip decision period (150 days), as well as the longest advance airline ticket reservation time, together with France (100 days each respectively), 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 4,189,000 509,000 303,000 294,000 139,000 464,000 353,000 74,000 277,000 210,000 108,000 384,000 (Number of Respondents) (4,272) (567) (299) (220) (136) (342) (259) (87)* (566) (142) (110) (106) 14 Days or Less 6.6% 4.4% 6.6% 1.5% 6.8% 5.2% 6.8% 7.8% 6.5% 10.2% 2.2% 11.2% 15-60 Days 33.0 24.4 18.9 22.4 25.7 18.0 52.9 42.1 49.6 66.6 22.4 53.3 61-120 Days 25.9 26.3 19.6 26.4 24.6 28.5 23.6 41.9 33.7 11.8 46.3 21.3 121-180 Days 16.3 17.6 22.2 23.3 22.9 20.4 10.5 5.5 6.8 8.3 18.8 3.6 181 Days or More 18.2 27.2 32.7 26.3 20.0 27.9 6.0 2.8 3.5 3.0 10.2 10.7 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% Average No. of Days 121.7 147.4 158.6 153.0 130.4 162.8 79.6 77.3 75.4 60.5 122.7 80.5 Median No. of Days 90.0 112.0 150.0 120.0 120.0 120.0 60.0 70.0 60.0 40.0 120.0 60.0 ADVANCE AIRLINE RESERVATIONS* ESTIMATED TRAVELERS 4,189,000 509,000 303,000 294,000 139,000 464,000 353,000 74,000 277,000 210,000 108,000 384,000 (Number of Respondents) (4,103) (551) (298) (210) (133) (336) (242) (83)* (518) (136) (110) (104) 14 Days or less 10.9% 7.1% 8.3% 3.1% 11.8% 7.0% 15.0% 10.3% 13.3% 21.3% 4.0% 29.0% 15-60 Days 41.2 30.9 26.2 31.4 28.4 33.4 64.4 55.3 61.9 65.7 42.4 48.3 61-120 Days 24.5 26.3 22.2 25.9 31.0 28.6 15.5 31.0 5.6 1.1 36.0 12.9 121-180 Days 13.4 15.8 24.9 26.2 17.2 17.5 4.6 3.3 3.0 1.2 7.5-181 Days or More 10.0 19.9 18.4 13.4 11.5 13.5 0.5-1.8-10.2 9.8 TOTAL 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Mean No. of Days 88.6 119.1 121.8 116.6 95.1 106.7 46.6 57.6 54.3 34.9 92.6 60.1 Median No. of Days 60.0 90.0 100.0 100.0 90.0 90.0 30.0 60.0 45.0 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, ITA, Survey of International Air Travelers, 2012. 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 (2012) Travel agents booked 34% of airline ticket reservations for overseas leisure travelers to California in 2012, compared with 47% in 2011, and 46% in 2010. The proportion of travel agent air bookings ranged from a low of 22% for leisure travelers from Mexico (air), to a high of 58% 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 (32%). Use of this means was highest among leisure visitors from the U.K. (45%) and Mexico (air) (42%), and lowest among leisure visitors from Italy and South Korea (13% and 15% respectively). An Internet booking service played a role in booking U.S. airline (26%) as well as lodging reservations (32%) for all overseas travelers to California in 2012. 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 4,189,000 509,00 303,000 294,000 139,00 464,000 353,000 74,000 277,000 210,000 108,000 384,000 (Number of Respondents) (4,421) (582) (321) (230) (138) (349) (263) (93)*** (581) (145) (110) (114) Travel Agency Office 33.8% 23.0% 33.2% 22.8% 53.5% 58.0% 23.2% 44.5% 43.2% 28.1% 24.0% 22.0% Airline Directly 31.6 44.9 31.1 35.8 13.3 26.5 31.8 24.1 26.3 14.7 35.0 41.5 Internet Booking 26.4 18.3 29.7 34.0 19.6 20.2 22.7 20.7 21.0 31.6 27.5 31.2 Service Tour Oper./Travel Club 9.3 14.4 6.5 8.6 14.0 4.0 13.3 8.7 4.5 23.3 17.7 2.5 Corporate Travel Dept. 3.8 1.8 3.9 3.7 0.8 1.9 13.5 9.3 2.3 2.8 1.4 5.2 Other/Don t Know 1.0 0.3 1.4 0.4 0.0 0.0 2.1 0.4 4.3 0.5 0.0 2.7 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% MEANS OF BOOKING LODGING** (Number of Respondents) (4,261) (581) (305) (223) (128) (347) (239) (83)*** (569) (138) (106) (106) Yes, Booked by: 68.8% 72.6% 70.7% 66.3% 74.0% 85.9% 70.1% 23.6% 70.5% 46.6% 74.6% 40.1% Internet Booking 32.0% 25.5% 30.6% 37.2% 26.7% 39.8% 27.9% 10.9% 24.8% 28.6% 51.5% 14.0% Service Hotel/Motel Directly 20.3 28.7 21.7 13.2 8.7 30.5 10.5 8.0 12.7 8.2 20.9 10.2 Travel Agency Office 18.5 14.9 26.2 14.7 36.7 35.4 15.9 3.4 26.6 6.0 5.9 7.4 Tour Oper./Travel Club 5.7 10.9 4.6 5.5 9.5 4.8 11.2 2.0 3.8 3.0 7.6 4.0 Corporate Travel Dept. 1.7 0.8 1.0 2.8 0.6 0.8 7.4-1.6 0.5 0.4 5.4 Airline Staff 1.3 4.7 1.1 - - 0.8 0.8-0.9 0.9 0.4 1.7 Other 1.3 0.5 1.1 1.4-0.2 3.9 2.1 3.2 0.6-0.4 No 31.2% 27.4% 29.3% 33.7% 26.0% 14.1% 29.9% 76.4% 29.5% 53.4% 25.4% 59.9% *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, ITA, Survey of International Air Travelers, 2012. 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 (2012) Referring directly to the airlines (43%) 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 (34%), personal recommendation (32%) and travel agency office (28%). Results in 2012 cannot be compared with previous years as categories have changed in 2012. Use of a travel guide was the next most frequently mentioned trip information source among leisure travelers to California (18%). Use of the airline directly was highest among leisure visitors from Brazil (59%), and the U.K. (57%), and lowest among leisure visitors from South Korea (17%). Use of an online travel agency among leisure visitors from Mexico (air), Brazil and Australia (42%, 41% and 41% respectively), and lowest among visitors from China, India and Japan (21%, 23% and 25% respectively). Use of a personal recommendation was highest among leisure visitors from India and Brazil (44% and 43% respectively) and lowest among leisure visitors from Italy and Japan (24% and 25% respectively). INFORMATION SOURCES* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 4,189,000 509,000 303,000 294,000 139,000 464,000 353,000 74,000 277,000 210,000 108,000 384,000 (Number of Respondents) (4,377) (579) (316) (224) (137) (345) (263) (90)** (576) (141) (109) (112) Airlines Directly 43.4% 56.9% 37.1% 37.2% 26.4% 47.0% 44.1% 35.7% 38.2% 17.3% 58.7% 41.3% Online Travel Agency 33.8 33.9 38.2 31.8 28.3 41.0 20.6 23.1 24.6 31.3 41.3 41.7 Personal Recommendation 32.0 26.0 39.2 27.6 24.3 30.5 39.6 44.1 24.8 35.1 43.0 32.0 Travel Agency Office 28.1 25.1 32.0 24.5 46.1 56.6 15.0 33.6 31.9 16.0 11.0 13.6 Travel Guide 17.7 18.8 30.9 23.6 17.8 17.3 14.4 10.5 18.9 7.2 18.4 7.5 Tour Operator/Travel Club 9.8 16.7 7.3 10.0 9.6 6.6 8.8 19.3 5.2 24.7 9.4 5.5 Government Travel Office 9.0 5.3 9.3 6.7 17.8 5.1 7.4 8.2 8.2 3.9 26.1 17.3 Corporate Travel Dept. 5.6 3.2 10.2 5.0 3.9 5.1 8.7 9.6 6.0 2.9 4.6 2.3 Other 5.0 2.5 8.1 8.3 5.5 4.6 4.7 4.0 5.3 2.8 3.7 3.5 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, ITA, Survey of International Air Travelers, 2012. 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 (2012) Most of the overseas leisure travelers to California (76%) purchased their airline ticket, particularly visitors from Australia, Italy and Germany (87%, 82% and 81% respectively). Leisure visitors from Korea (59%) and Mexico (air) (60%) had the lowest tendency toward purchasing an airline ticket. Results cannot be compared with previous years due to a change in categories. Approximately 18% of overseas leisure travelers to California used a prepaid inclusive tour package. Results cannot be compared with previous years 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 4,189,000 509,000 303,000 294,000 139,000 464,000 353,000 74,000 277,000 210,000 108,000 384,000 (Number of Respondents) (4,027) (545) (288) (202) (123) (327) (235) (79)** (552) (131) (101) (89)** Paid Ticket 75.9 79.0 81.4 71.7 81.7 86.5 73.1 78.4 63.8 59.2 78.0 60.2 Paid Upgrade 2.6 4.7 0.6 1.6 1.4 1.2 2.0 1.5 6.2 0.8 5.9 2.9 Frequent Flyer Award 6.0 6.6 6.0 9.9 4.9 6.9 1.9 3.8 5.5 2.3 11.2 0.9 Frequent Flyer Upgrade 0.9 2.1 0.7-0.9 0.4 0.4 0.8 0.6 0.7 4.9 3.1 Discount/Group Fare 4.6 1.7 2.4 8.0 0.2 1.2 15.4 0.7 8.9 15.4 2.1 2.1 Non-revenue 2.0 2.4 1.1 1.6-0.8 1.8 4.5 1.7 2.0 4.8 6.3 Don't Know 11.1 6.7 10.4 9.0 14.2 3.4 9.3 11.7 17.8 25.5 12.2 26.5 SOUTH KOREA BRAZIL MEXICO (AIR) USE OF PREPAID PACKAGE (Number of Respondents) (4,317) (579) (311) (218) (135) (347) (249) (86)** (573) (141) (108) (105) Yes, Airfare and Accom.* 17.5% 14.6% 10.8% 31.3% 30.2% 11.2% 35.8% 4.2% 20.8% 27.0% 16.2% 13.1% Airfare and Accom. Only 2.8% 2.9% 2.7% 2.0% 2.6% 1.6% 2.5% 2.6% 10.0% 0.5% 2.1% 6.1% Bus/Coach 8.3 6.3 5.7 9.0 11.0 8.3 21.9 2.8 15.6 20.5 2.3 1.8 Attractions/Events/Ent. 7.9 7.3 5.9 7.1 9.0 8.4 29.3 3.0 11.0 10.4 0.4 0.2 Guided Tours 7.4 6.4 3.9 10.1 7.1 5.1 26.8 2.8 10.9 15.5 0.4 1.8 Meals 6.8 5.7 4.5 9.3 6.6 3.5 22.7 3.0 11.0 18.5 0.4 2.0 Rental Car 5.3 9.3 4.5 10.9 10.2 2.1 12.1 0.3 1.2 1.3 2.7 - Cruise 1.7 3.0 0.3 1.3-1.1 6.2 0.9 1.7 1.5 - - Rail Tickets 1.3 2.3 0.7 - - 0.7 1.3 0.6 5.2 4.7 - - Recreation 1.3 1.6 0.3 0.4-0.5 7.1 0.9 1.6 0.7-1.8 Tour Guide for Entire Trip 5.5 3.2 4.4 7.5 9.0 1.7 21.1 2.5 7.8 13.4 0.7 - No 81.8% 79.3% 85.4% 78.6% 74.3% 86.8% 62.4% 94.4% 67.3% 75.8% 93.9% 92.0% TOTAL 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% * Multiple Response. Must include airfare and accommodation and may include others. **Caution - Small sample size. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 79

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Table 36 TRAVEL PARTY SIZE OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2012) Almost nine in ten (88%) of all leisure travel groups to California consisted of adults only, while 12% were adults traveling with children. The mean total party size for leisure travelers was 1.8 persons. These results are 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 4,189,000 509,000 303,000 294,000 139,000 464,000 353,000 74,000 277,000 210,000 108,000 384,000 (Number of Respondents) (4,457) (587) (322) (230) (138) (347) (268) (94)** (595) (145) (110) (114) Adults Only 87.6% 93.2% 86.0% 83.3% 88.5% 87.1% 83.0% 95.6% 86.5% 90.3% 82.6% 88.3% Adults and Children 12.4 6.8 14.0 16.7 11.5 12.9 17.0 4.4 13.5 9.7 17.4 11.7 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 1.9 1.9 1.9 1.9 2.3 1.4 1.8 1.6 1.9 1.6 Median Total Party Size 2.0 2.0 2.0 2.0 2.0 2.0 2.0 1.0 2.0 1.0 1.0 1.0 ADULTS ONLY (Number of Respondents) (3,730) (529) (269) (181) (121) (292) (214) (86)** (510) (130) (84)** (89)** Mean Adult Party Size 1.6 1.6 1.6 1.6 1.7 1.6 2.0 1.3 1.6 1.4 1.5 1.3 Median Adult Party Size 1.0 2.0 2.0 2.0 2.0 2.0 2.0 1.0 1.0 1.0 1.0 1.0 ADULTS AND CHILDREN (Number of Respondents) (727) (58)** (53)** (49)** (17)** (55)** (54)** (8)** (85)** (15)** (26)** (25)** Mean Party Size 3.6 3.5 3.4 3.7 3.2 3.9 3.8 3.8 3.1 3.1 3.7 3.8 Median Party Size 4.0 3.0 3.0 4.0 3.0 4.0 3.0 4.0 3.0 3.0 4.0 4.0 *Column percentages may total more than 100% due to rounding. **Caution - Small sample size. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 81

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Table 37 GENDER AND AGE OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2012) Slightly more female (51.5%) than male (48.5%) overseas leisure visitors to California were surveyed. The median age for females in 2012 was 36 years (38 years in 2011), versus 41 years for males (43 years in 2011). 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 4,189,000 509,000 303,000 294,000 139,000 464,000 353,000 74,000 277,000 210,000 108,000 384,000 (Number of Respondents) (4,115) (551) (290) (210) (127) (320) (243) (86)** (560) (139) (102) (98)** MALE ADULTS 48.5% 49.8% 51.1% 44.6% 51.9% 46.7% 49.7% 63.5% 51.0% 32.1% 50.1% 51.9% 18-24 Years 5.5 6.8 3.9 5.8 2.7 5.5 7.3 4.7 5.4 5.6 8.2-25 - 34 Years 12.5 9.3 15.0 9.4 24.1 12.2 12.0 17.0 10.8 7.6 19.8 17.6 35-54 Years 18.1 15.8 22.7 17.3 22.2 17.2 22.9 11.2 19.3 8.9 10.7 18.4 55 + Years 12.4 17.9 9.5 12.1 2.8 11.8 7.6 30.6 15.7 10.0 11.5 15.8 Average Male Age 42.7 45.7 41.3 43.6 35.8 42.5 40.4 48.3 45.0 41.4 37.6 45.5 Median Male Age 41.0 46.0 40.0 44.0 34.0 41.0 40.0 47.0 44.0 44.0 32.0 46.0 SOUTH KOREA BRAZIL MEXICO (AIR) FEMALE ADULTS 51.5% 50.2% 48.9% 55.4% 48.1% 53.3% 50.3% 36.5% 49.0% 67.9% 49.9% 48.1% 18-24 Years 7.5 6.4 9.4 9.3 7.1 12.0 9.6 3.6 4.5 3.8 2.2 6.1 25-34 Years 16.7 12.6 19.4 19.0 23.9 14.3 14.7 9.7 11.3 32.5 23.4 9.7 35-54 Years 17.1 15.7 13.0 14.3 10.5 15.8 19.7 12.8 22.9 28.1 17.7 20.3 55 + Years 10.0 15.5 7.1 12.8 6.6 11.2 6.4 10.5 10.4 3.4 6.8 11.8 Average Female Age 39.6 44.1 36.4 39.9 36.5 38.9 36.8 43.1 43.0 36.0 38.5 43.3 Median Female Age 36.0 44.0 33.0 32.0 30.0 35.0 35.0 44.0 41.0 31.0 34.0 43.0 *Column percentages may not total to 100% due to rounding. **Caution Small sample size. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 83

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Table 38 ANNUAL HOUSEHOLD INCOME OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2012) Overseas leisure travelers to California in 2012 had a median household income of $75,000. Results cannot be compared with previous years as the data is captured differently in 2012 to all prior years. The median household income for all overseas travelers to California in 2012 (Table 16) was $77,300. Overseas leisure visitors from Australia ($104,700) and Japan ($98,900) reported the highest median household income. Leisure visitors from Mexico (air) ($24,000) reported the lowest median household income. ANNUAL HOUSEHOLD INCOME* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 4,189,000 509,000 303,000 294,000 139,000 464,000 353,000 74,000 277,000 210,000 108,000 384,000 (NUMBER OF RESPONDENTS) (2,679) (355) (138) (125) (63)** (205) (179) (56)** (392) (89)** (72)** (65)** Under $20,000 13.1% 3.2% 11.0% 12.2% 10.3% 3.2% 23.3% 41.5% 6.1% 16.4% 20.6% 50.0% $20,000 - $59,000 26.7 21.0 23.3 31.8 54.4 15.1 43.2 33.5 16.0 43.4 30.0 20.2 $60,000 - $99,999 24.6 35.5 33.5 32.8 25.0 26.0 13.8 7.8 28.1 19.2 16.1 13.1 $100,000 - $139,999 14.7 15.2 20.3 11.3 7.7 22.4 6.1 3.9 26.9 9.6 13.8 2.9 $140,000 - $179,999 8.3 12.5 5.5 3.8 0.9 7.8 10.1 4.4 5.5 7.6 9.5 1.2 $180,000 and over 12.8 12.7 6.3 7.9 1.7 25.6 3.5 8.8 17.4 3.7 9.9 12.6 TOTAL 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% SOUTH KOREA BRAZIL MEXICO (AIR) Average Annual Income $98,512 $112,670 $82,733 $78,732 $52,586 $126,826 $62,140 $69,897 $127,761 $69,021 $85,522 $65,197 Median Annual Income $75,000 $80,579 $81,762 $67,636 $44,755 $104,707 $47,355 $30,000 $98,880 $50,000 $55,641 $24,000 *Column percentages may not total to 100% due to rounding. **Caution - Small sample size. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. 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 (2012) Overseas leisure visitors to California in 2012 had an average U.S. trip stay of 20 nights and an average stay in California of 11 nights. Japanese (10 nights) followed by Mexico (air) leisure travelers (12 nights) reported the shortest trip stays in the U.S., while Japanese, Australian, Italian, and Mexico (air) leisure visitors reported the shortest stays in California (7 nights, 8 nights, 9 nights and 9 nights respectively). Once again, leisure travelers from India and China reported the longest stays in the U.S. (39 nights and 28 nights respectively), as well as in California (21 nights and 15 nights respectively). (Caution small sample size for India and Mexico Air). In 2012, 29% of overseas leisure visitors to California were on their first international trip (33% in 2011). Leisure visitors from China (61%) and South Korea (50%) 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 4,189,000 509,000 303,000 294,000 139,000 464,000 353,000 74,000 277,000 210,000 108,000 384,000 (Number of Respondents) (4,444) (585) (321) (228) (136) (350) (269) (91)* (596) (144) (108) (106) Mean No. Nights 19.7 17.9 19.4 18.7 16.0 22.7 27.9 39.2 9.6 17.7 21.3 11.9 Median No. Nights 15.0 14.0 19.0 15.0 15.0 21.0 13.0 30.0 6.0 10.0 15.0 7.0 SOUTH KOREA BRAZIL MEXICO (AIR) NIGHTS IN CALIFORNIA (Number of Respondents) (3,881) (537) (271) (203) (120) (328) (227) (67)* (548) (113) (95)* (77)* Mean Nights in Dest. 10.6 11.1 10.2 11.5 8.5 7.6 15.4 21.2 7.4 11.4 10.7 8.5 Median Nights in Dest. 7.0 9.0 8.0 8.0 7.0 7.0 5.0 8.0 5.0 5.0 9.0 6.0 FIRST INTERNATIONAL TRIP (Number of Respondents) (3,924) (555) (279) (202) (121) (322) (221) (78)* (520) (124) (98)* (90)* Yes 28.8 13.9 30.7 32.2 42.4 40.6 61 19.8 19.4 50 16.8 13.9 No 71.2 86.1 69.3 67.8 57.6 59.4 39 80.2 80.6 50 83.2 86.1 *Caution Small sample size. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 87

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Table 40 PORT OF ENTRY OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2012) Similar to results from previous years, Los Angeles was the major port of entry for all leisure travelers to California (45%) followed by San Francisco (23%). PORT OF ENTRY* COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 4,189,000 509,000 303,000 294,000 139,000 464,000 353,000 74,000 277,000 210,000 108,000 384,000 (Number of Respondents) (4,469) (587) (322) (230) (139) (350) (271) (94)** (597) (145) (110) (114) Atlanta, GA 1.8% 2.7% 5.2% 0.1% 2.7% - 1.0% 0.5% 0.5% 1.6% 0.8% - Boston, MA 0.4 0.6 0.6-1.1 - - 3.4 - - - - Chicago, IL 2.8 2.4 3.4 4.1 1.7-2.8 2.4 0.3 2.3 3.2 - Dallas/Ft. Worth, TX 1.5 0.6 1.7 2.0-0.7% 0.2 1.4-1.3 12.2 3.6% Detroit, MI 0.6 0.1 1.8 1.9 - - 0.3 1.5-2.0 1.0 - Honolulu, HI 2.2 0.6-1.2-5.2 7.5-8.7 1.1 - - Houston, TX 1.0 0.5 0.8 0.7 - - - 2.2 - - 9.7 2.9 Las Vegas, NV 3.1 14.0 5.7 2.1 0.4 - - - - - 3.6 1.4 Los Angeles, CA 45.1 35.6 32.2 48.7 35.5 80.3 49.1 18.7 48.7 45.2 33.6 66.3 Miami, FL 2.8 0.8 0.4-4.2 - - - 0.4-21.6 - Minn./St. Paul, MN 0.2 0.3 0.2 - - - - - - - - - New York, NY 6.1 2.1 3.1 8.6 17.7 2.6 8.3 9.1 0.3 2.5 5.3 0.1 Newark, NJ 1.6 2.0 2.8-2.5 0.5-2.7 - - - - Philadelphia, PA 0.6 0.1 2.7 0.5 0.4 - - 0.8 - - - - San Francisco, CA 23.2 26.5 31.5 20.4 26.8 9.8 20.6 51.8 31.8 28.4 7.5 19.7 Seattle, WA 1.2 0.3 1.6 3.2 1.9 - - - 1.4 3.6 - - Washington, DC 1.4 1.4 2.2 1.7 - - 2.4 4.7 - - 1.2 - Other Port 4.5 9.3 4.1 4.8 5.0 0.8 7.9 0.9 7.8 12.2 0.4 5.9 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% SOUTH KOREA BRAZIL MEXICO (AIR) *Column percentages may not total to 100% due to rounding. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 89

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Table 41 OVERNIGHT ACCOMMODATIONS OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2012) Three-quarters (75%) of overseas leisure travelers to California reported staying in hotels or motels at some time during their trip, and 31% reported staying in private homes. Hotel usage was highest among visitors from Italy (88%) followed by visitors from Australia and Brazil (86% and 82% respectively). Similar to 2011, hotel usage was lowest among visitors from India (38%), followed by Mexico (air) (46%). A high proportion of Indian (69%) and Mexico (air) (47%) leisure travelers stayed in private homes. TYPE OF ACCOMMODATIONS * COUNTRY OF RESIDENCE OF VISITORS TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN ESTIMATED TRAVELERS 4,189,000 509,000 303,000 294,000 139,000 464,000 353,000 74,000 277,000 210,000 108,000 384,000 (Number of Respondents) (3,611) (510) (244) (195) (104) (307) (182) (55)** (509) (109) (92)** (77)** SOUTH KOREA BRAZIL MEXICO (AIR) Hotel / Motel 74.6% 78.7% 73.7% 75.5% 88.4% 86.0% 65.0% 38.3% 75.5% 73.2% 82.1% 45.9% Mean Nights in Dest. 6.9 7.5 7.3 7.5 7.3 7.0 6.5 7.5 3.9 4.8 8.3 5.0 Median Nights in Dest. 6.0 6.0 5.0 5.0 7.0 6.0 4.0 3.0 4.0 4.0 9.0 4.0 Private Home 31.1% 26.8% 30.5% 31.2% 12.6% 15.2% 33.8% 69.3% 31.0% 33.6% 24.2% 46.6% Mean Nights in Dest. 16.1 17.0 10.7 17.3 14.0 8.8 38.7 23.4 13.0 18.8 16.0 13.9 Median Nights in Dest. 10.0 12.0 9.0 10.0 8.0 6.0 18.0 10.0 8.0 14.0 7.0 10.0 Other 7.1% 7.9% 16.0% 12.0% 4.6% 5.5% 5.6% 6.4% 2.9% 3.7% 2.1% 9.3% *Column percentages may not total to 100% due to multiple responses. **Caution - Small sample size. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. 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 (2012) Leisure travelers relied upon a variety of transportation means within the U.S. including rental cars (45%), domestic flights (44%), private or company autos (39%), subways/trams/buses (35%), and taxis/limousines (29%). Rental car use was highest among German and Brazilian leisure visitors (63% each respectively). Leisure visitors from Australia had the highest use of domestic airline travel (76%), subways/trams/buses (48%), as well as taxi/cab/limousines (48%). Leisure visitors from China (54%) relied heavily on a company or private auto. 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 4,189,000 509,000 303,000 294,000 139,000 464,000 353,000 74,000 277,000 210,000 108,000 384,000 (Number of Respondents) (3,985) (546) (289) (207) (124) (325) (231) (62)** (529) (130) (102) (85)** Rented Auto 45.2% 52.6% 63.1% 58.0% 54.4% 38.3% 24.7% 19.7% 24.9% 32.1% 62.6% 20.1% Airlines in U.S. 44.1 29.3 37.4 33.6 53.9 76.0 47.5 54.4 29.0 24.9 38.2 22.3 Company or Private Auto 38.8 35.3 32.9 31.1 30.5 35.6 53.5 35.7 39.5 36.6 34.1 41.5 City Subway/Tram/Bus 35.3 35.2 39.2 32.8 38.2 48.1 23.1 41.7 31.0 28.8 27.2 10.5 Taxicab/Limousine 28.7 34.1 22.1 16.8 32.3 47.6 17.4 36.3 28.1 11.9 23.3 23.2 Bus between Cities 16.7 11.7 13.9 11.1 19.6 24.9 12.2 26.6 21.9 31.9 11.2 28.6 Ferry/River Taxi/Srt. Cruise 13.6 21.1 12.4 14.1 19.3 20.6 9.1 18.7 6.6 9.3 3.1 10.8 Railroad between Cities 7.8 6.4 3.7 4.3 1.0 17.0 3.9 9.7 12.5 4.2 1.5 0.9 Rented Bicycle/ Motorcycle/Moped 4.8 4.6 5.6 4.7 2.0 6.8 2.6-4.5 0.6 4.3 3.2 Cruise Ship/River Boat 4.3 7.3 4.5 3.5-7.7 0.7 2.7 1.1 2.0 2.4 4.0 Motor Home/Camper 3.1 3.9 9.8 2.0 0.9 1.1 0.3 11.0 0.2 0.6 - - 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, ITA, Survey of International Air Travelers, 2012. 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 (2012) Leisure travelers to California predominantly make use of a credit card (38%), cash from home/travelers checks (32%), as well as a cash advance/withdrawal using a credit card (15%) as a method of payment for their trip expenses. Leisure visitors from Germany (59%) had the highest use of credit cards for purchases, while leisure visitors from South Korea had the highest use of cash/travelers checks (52%), as well as cash advance/withdrawal using credit card (23%). 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 4,189,000 509,000 303,000 294,000 139,000 464,000 353,000 74,000 277,000 210,000 108,000 384,000 (Number of Respondents) (3,276) (421) (212) (168) (102) (267) (190) (40)** (498) (110) (74)** (71)** Purchases Using Credit Card 38.3% 33.1% 59.0% 32.3% 46.3% 32.6% 46.7% 44.8% 43.4% 19.0% 30.6% 30.0% Cash from Home/Travelers Checks 31.9 34.6 19.4 34.4 27.5 21.7 34.9 26.6 40.8 52.4 41.8 41.4 Cash Adv./Withdrawal Using Credit Card 15.1 11.0 17.0 18.7 18.0 12.4 10.7 22.2 13.4 23.4 11.0 14.5 Purchases Using Debit Card 7.4 10.0 1.7 6.5 4.7 17.4 6.7 2.1 1.1 1.6 13.8 7.6 Cash Adv./Withdrawal Using Debit Card 7.2 11.3 2.9 8.1 3.6 15.9 1.1 4.3 1.2 3.7 2.9 6.5 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, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 95

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Table 44 TRIP EXPENDITURES OVERSEAS AND MEXICAN LEISURE VISITORS TO CALIFORNIA (2012) Overseas leisure travelers in 2012 reported total expenditures in the U.S. of $2,051, 14% lower than that reported in 2011 ($2,388). The 2012 mean daily expenditure was $104 per visitor, down 12% from $118 per day in 2011. As a comparison, all overseas travelers to California reported U.S. expenditures of $2,110 or $97 per day (Table 22). Leisure visitors from Australia reported the highest international airfare per visitor per trip in 2012 ($2,390), almost identical to that from 2011 ($2,370). On the other hand, Mexico (air) travelers reported the least expensive international airfare in 2012 ($1,010), compared with $1,190 in 2011. COUNTRY OF RESIDENCE OF VISITORS AVERAGE PER VISITOR TRIP EXPENDITURES TOTAL OVERSEAS U.K. GERMANY FRANCE ITALY AUSTRALIA CHINA w/o HK INDIA JAPAN SOUTH KOREA BRAZIL MEXICO (AIR) ESTIMATED TRAVELERS 4,189,000 509,000 303,000 294,000 139,000 464,000 353,000 74,000 277,000 210,000 108,000 384,000 TOTAL TRIP $3,666 $3,035 $2,876 $2,282 $2,404 $5,668 $4,425 $3,480 $3,067 $3,150 $4,417 $1,896 (Number of Respondents) (2,852) (417) (186) (153) (85)** (249) (162) (34)** (396) (84)** (71)** (57)** INCLUSIVE TOUR PRICE $3,302 $3,422 $2,809 $2,847 $4,130 $5,514 $3,172 $2,510 $3,489 $2,019 $3,714 $1,037 (Number of Respondents) (620) (90)** (31)** (46)** (27)** (31)** (92)** (5)** (151) (24)** (8)** (4)** INTERNATIONAL AIRFARE $1,615 $1,334 $1,275 $1,064 $1,159 $2,389 $1,572 $1,615 $1,780 $1,432 $1,380 $1,014 (Number of Respondents) (1,713) (265) (131) (79)** (44)** (182) (47)** (23)** (170) (33)** (46)** (42)** EXPENDITURE IN U.S.* $2,051 $1,701 $1,600 $1,218 $1,245 $3,279 $2,853 $1,865 $1,288 $1,719 $3,037 $882 (Per Day) $104 $95 $82 $65 $77 $144 $102 $47 $133 $97 $142 $74 (Number of Respondents) (1,846) (278) (120) (98)** (54)** (169) (76)** (14)** (245) (51)** (47)** (37)** MEAN ITEMIZED EXPENDITURES IN U.S.* (NUMBER OF RESPONDENTS) (2,526) (380) (165) (82)** (48)** (261) (104) (34)** (410) (81)** (100) (70)** LODGING IN U.S. $532 $567 $567 $318 $192 $925 $308 $107 $257 $654 $654 $126 AIR TRANSPORT IN U.S. $119 $44 $45 $129 $44 $220 $213 $414 $42 $75 $113 $14 FOOD,BEVERAGES $401 $453 $340 $271 $416 $623 $189 $199 $230 $330 $470 $133 GROUND TRANSPORT IN $122 $68 $96 $105 $79 $151 $152 $353 $72 $93 $329 $36 U.S. GIFTS, SOUVENIRS $492 $216 $259 $210 $291 $764 $1,429 $571 $416 $287 $791 $345 ENTERTAINMENT $292 $280 $223 $162 $175 $511 $342 $214 $186 $140 $639 $202 OTHER $62 $47 $55 $5 $38 $53 $114 $3 $49 $108 $23 $6 AVERAGE NIGHTS IN U.S. 19.7 17.9 19.4 18.7 16.0 22.7 27.9 39.2 9.6 17.7 21.3 11.9 AVERAGE NIGHTS IN CALIF. 10.6 11.1 10.2 11.5 8.5 7.6 15.4 21.2 7.4 11.4 10.7 8.5 MEDIAN NIGHTS IN CALIFORNIA 7.0 9.0 8.0 8.0 7.0 7.0 5.0 8.0 5.0 5.0 9.0 6.0 SPENDING /VISITOR IN CA (est.) $1,102 $1,055 $836 $748 $655 $1,094 $1,571 $996 $984 $1,106 $1,519 $629 *Overseas visitors on exclusive tour packages were excluded. **Caution - Small sample size. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 97

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Table 45 EXPENDITURES OVERSEAS AND MEXICAN LEISURE VISITORS WHO REPORTED ONLY CALIFORNIA DESTINATIONS* (2012) Similar to the 2011 result, approximately 37% of overseas leisure visitors to California in 2012 did not visit any other state in the U.S. These California-only leisure visitors reported spending $2,833 per capita on their entire trip, 20% less than the $3,558 spent in 2011. Almost half of their total trip expenditures were in California ($1,315). Average daily California expenses for California-only leisure visitors were $75, down 23% from the $97 per day reported in 2011. In comparison, average daily expenses were $104 and $105 for all overseas leisure visitors to California and to the U.S. respectively. AVERAGE PER VISITOR TRIP EXPENDITURES OVERSEAS LEISURE TRAVELERS WHO ONLY VISITED CALIFORNIA ON THEIR U.S. TRIP ALL OVERSEAS LEISURE VISITORS TO CALIFORNIA ALL LEISURE OVERSEAS VISITORS TO THE U.S. TOTAL TRIP $2,883 $3,666 $3,075 (NUMBER OF RESPONDENTS) (1,049) (2,852) (18,495) INCLUSIVE TOUR PRICE $3,129 $3,302 $2,324 (NUMBER OF RESPONDENTS) (171) (620) (4,345) INTERNATIONAL AIRFARE $1,518 $1,615 $1,395 (NUMBER OF RESPONDENTS) (648) (1,713) (10,708) EXPENDITURE IN CALIFORNIA $1,315 $2,051 1,679** PER DAY $75 $104 $105** (NUMBER OF RESPONDENTS) (712) (1,846) (11,884) AVERAGE ITEMIZED EXPENDITURES IN CA (NUMBER OF RESPONDENTS) (712) (1,846) (11,884) AIR TRANSPORT IN U.S. $49 $119 $79 GROUND TRANSPORT IN U.S. $63 $122 $90 LODGING $278 $532 $390 FOOD, BEVERAGES $263 $401 $322 GIFTS, SOUVENIRS $400 $492 $492 ENTERTAINMENT $167 $292 $221 OTHER $65 $62 $55 AVERAGE NIGHTS IN CALIFORNIA 15.3 10.6 10.0** *Overseas visitors could report up to seven U.S. destinations. **Total expenditure in the U.S./ Average nights in the U.S. Sources: U.S. Department of Commerce, ITA, Survey of International Air Travelers, 2012. CIC Research, Inc., and Visit California. 99

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APPENDIX A SURVEY BACKGROUND Introduction This report on overseas visitors to California is based on data compiled from the Office of Travel & Tourism Industries (ITA OTTI), 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. 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. 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. 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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