International Tourism Marketing Workshop: Presented by: Western States Tourism Policy Council 2003-2005 International Tourism Marketing Workshop


What is WSTPC?Western States Tourism Policy Councilwww.wstpc.com: What is WSTPC? Western States Tourism Policy Council www.wstpc.com Consortium of 13 Western states Supports, preserves and protects federal and tribal lands Raises awareness of the role those lands play in sustainable tourism for communities they border Advances public policy goals critical to tourism in the West The Market Development Cooperator Program’s (MDCP) mission is to develop, maintain, and expand international markets through public-private sector partnerships by increasing the number of small and medium-sized enterprises that participate in it.


Who are the WSTPC partners?: Who are the WSTPC partners? National Park Service USDA Forest Service Bureau of Land Management Bureau of Indian Affairs Bureau of Reclamation U.S. Fish and Wildlife Service U.S. Army Corps of Engineers Natural Resources Conservation Service Federal Highway Administration Environmental Protection Agency Department of Commerce Office of Travel and Tourism Industries


What do we hope to accomplish today?: What do we hope to accomplish today? Review the scope, future, and benefits of the international market, and in particular, of the WSTPC target markets. Understand how participants can fit into the market, how they can develop and price product, and how they can reach the market. Learn how to successfully do business with international companies and host international guests. Determine if this market is a good fit for individual businesses in the Western states.


What is the scope of the international market?: What is the scope of the international market? 2002-2006(predicted) Arrivals in millions Source: US Dept. of Commerce, ITA, OTTI


Who is traveling to the U.S?: Who is traveling to the U.S? Top International Visitor Markets to the U.S. Arrivals % change 2002 2001/2002 Canada 12,986,000 -4% Mexico 9,807,000 3% United Kingdom 3,816,736 -7% Japan 3,627,264 -11% Germany 1,189,856 -9% France 734,260 -16% South Korea 638,697 3% Australia 407,130 -4% Italy 406,160 -14% Brazil 405,094 -27%


International visitors…: International visitors… stay longer than domestic visitors. have more paid vacation so travel more. spend more than domestic visitors. help balance domestic tourism swings. have fairly high disposable income. are not climate dependent. book further in advance.


International visitors…: International visitors… book out-of-the-way places. want to see the “American way of life”. enhance the experience of domestic visitors. add to the federal, state, and local tax base. give jobs to many residents. often travel in our off-seasons. offer a pathway to world peace.


What’s ahead for the international market?: What’s ahead for the international market? Long-Term Forecast 2002(r)-2006(p) (in thousands) Source: US Dept. of Commerce, ITA, OTTI


What are the WSTPC target markets and why? : What are the WSTPC target markets and why? United Kingdom – 3,816,736 arrivals Japan – 3,627,264 arrivals Germany – 1,189,856 arrivals They are the three largest overseas visitor markets. Their travel patterns and travel styles are a good match for the Western states. They appreciate the unique assets of the Western States. They are forecast to continue growing in visitation.


What’s ahead for the WSTPC target markets?: What’s ahead for the WSTPC target markets? Long-Term Forecast 2002(r)-2006(p) Source: US Dept. of Commerce, ITA, OTTI


United Kingdom: United Kingdom Travel Montana, Dept. of Commerce has been marketing in the UK for several years with our partner states of South Dakota, Wyoming and Idaho. All four states contract with a company called Rocky Mountain International (RMI) to coordinate our marketing activities in several European countries. RMI has established an office in the UK as well as in our other European markets. Our RMI-UK representative is Claire Blacknell, International Representation Services, email: rmi.uk@btinternet.com RMI-UK attends World Travel Market (WTM), the largest travel show in the UK, on behalf of the four states to meet with tour operators and media to promote our region as a vacation destination. In addition, the four state representatives and RMI staff do annual sales calls and staff training in various cities in the UK. UK visitors generally travel as F.I.T.’s (foreign independent traveler) or take “fly-drive” vacations, and enjoy national parks, scenery, ranch stays, cattle drives, pack trips, culture, Indian heritage, soft adventure, outdoor activities and shopping. There are four ranch specialist tour operators in the UK – Ranch America, Ranch Rider, In the Saddle and American Round-Up. These companies provide ranch vacations and soft adventure activities and all have a large Montana inventory. Go Fishing,/Windows on the Wild /America as You Like It and Roxton Bailey are two UK companies that offer fishing, outdoor and ranch activities. There are 16 tour companies in the RMI-TRIP Report (Tourism Research Inventory Product) that currently offer Montana package product that include the types of vacations you offer to your clients.


Japan: Japan The Trade and International Relations Bureau, Dept. of Commerce, has an office in Kumamoto, Japan as part of the Montana Sister State relationship with the Kumamoto Prefectural Government. Our representative is Ms. Mako Sakaguchi, email: makos@bigskyjapan.com The website is http://www.bigskyjapan.com/ Travel Montana’s current marketing efforts in Japan include only those projects we work on with the Trade Office in Kumamoto. To be successful in the Japanese market, it takes a major investment in time, Japanese speaking staff, and budget. In July 2003, travel journalist Ms. Miki Ihara with Rapita magazine in Japan joined the working ranch vacation fam tour in Yellowstone Country. Her article will appear in the spring of 2004. The typical first-year Japanese employee is granted only 10 days vacation time, in comparison to 22 days in the UK, and 24 days in Germany.


Germany: Germany Germany is one of Montana’s major European markets, and along with the UK was one of the first European markets in which Travel Montana invested our marketing efforts. RMI has established an office in Frankfurt. Susanne Schmitt, Wiechmann Tourism Services, email: susanne@wiechmann.de Travel Montana attends the ITB trade show in Berlin every March, the largest travel show in Germany. This gives us the opportunity to meet with tour operators and media to promote Montana as a vacation destination. Vacation travel is a higher priority for Germans than most consumer durables. They tend to be independent travelers and trendsetters in international travel. Bookings through travel agents and tour operators have increased to 46% and only 4% book on the internet (2002). German visitors enjoy scenery, national parks, Indian culture, history, soft adventure, ranch vacations, soft adventure and outdoor activities. There are four ranch specialists in Germany offering ranch vacations, cattle drives, and outdoor adventure. They are Argus Reisen, Pferde & Mehr, Pferde und Reiter Internationale Reiterreisen and Ride Away. There are18 tour companies in Germany listed in the RMI-TRIP Report (Tourism Research Inventory Product) that currently offer Montana package product that include the types of vacations you offer to your clients.


What are the emerging markets?: What are the emerging markets? Mexico (2nd largest visitor market) France (6th ) South Korea (7th) Australia (8th) Italy (9th) Netherlands (12th)


What tools do I have to reach this market?: What tools do I have to reach this market? Trade shows Sales/Training missions Familiarization (research) trips Websites Advertising Editorials Guidebooks Word-of-Mouth!


What trade shows can I participate in?: What trade shows can I participate in? International Pow Wow – rotates in U.S. cities All markets WTM – London, England Primarily UK market ITB – Berlin, Germany Primarily German market JATA/World Travel Fair – Tokyo, Japan Primarily Japanese market


Who should I partner with?: Who should I partner with? State, local, regional DMOs Airlines/Airports Tour operators/Receptive operators In-country state representatives Visit USA/TIA overseas offices WSTPC Federal partners/Tribal partners Other suppliers/Industry associations


Where do I begin?: Where do I begin? Choose one market at a time. Decide which products fit the market. F.I.T. Group Work with receptive operators. Packages Tariffs Make high quality promotional materials available. Commit to the market for 3-5 years.


What is a receptive operator and how do I work with them?: What is a receptive operator and how do I work with them? Receptive operator - A ground operator who packages and sells services such as hotels, sightseeing, attractions, and transfers. Get their advice on markets and how your products must be packaged and priced to sell in those markets. Offer them a first-hand experience with your product. Make your rates available to receptives 1½ years out for their tariffs. Offer receptives net/net rates which are 25-35% off regular rates. Keep receptives up to date on your product.


How is the international tourism product distributed?: How is the international tourism product distributed? Consumer Travel Agent International Tour Operator U.S. Receptive Operator U.S. Travel Supplier


How do I price my products?: How do I price my products? To receptive operators Net/net rate equivalent to 25-35% off rack rate To international tour operators Net rates equivalent to 20-25% off rack rate


When do my clients need my pricing/product information?: When do my clients need my pricing/product information? General Guidelines United Kingdom – July (for the following summer) Rest of Europe – September (for the following summer) Pacific Rim – January (for the following summer) Remember… each market and each client has different timing, so be sure to provide your rates to each when they need them.


What types of promotional materials do I need?: What types of promotional materials do I need? Provide high quality images for promotional purposes. Hire a reputable professional to translate your promo materials. Have promo materials translated using the most current language style. Be sure videotapes are in the correct format for each market.


What do I need to know about doing business internationally?: What do I need to know about doing business internationally? Know about the culture ahead of time. Allow time for relationships to grow. Be familiar with expectations of socializing, gift-giving, and presenting business cards. Provide up-to-date translations for brochures in a straight, factual manner. Learn to read “between the lines” in business dealings. Understand various communication styles. Respect seniority.


What do I need to know to successfully host international visitors?: What do I need to know to successfully host international visitors? Use family names with titles. Handle smoking and tipping issues with grace. Be ready with appropriate conversational topics, avoid “dangerous topics”. Avoid the term “foreigner”. Resist the temptation to generalize about cultures.


What special service considerations may arise?: What special service considerations may arise? Language assistance International signage Currency exchange, credit card usage Early arrivals/late check-outs Bed configuration, amenities in rooms Use of public transportation Size conversion charts Restaurant issues (the check, water, ice, coffee, etc.)


Am I ready for the international market?: Am I ready for the international market? Do I have a product attractive to this market? How many years can I commit to this market? Am I willing and able to be part of a marketing team? Can I offer the rates required? How accessible is my business? Can I offer the services needed? What do I need to consider regarding language and customs?


International visitors to our state: International visitors to our state Montana actively markets in Germany, UK, Belgium, France, the Netherlands, Italy, and works on tourism projects with our trade offices in Taipei, Taiwan and Kumamoto, Japan. It is estimated that non-Canadian visitation to Montana is 3% of the total visitation of 9,776,000 in 2002. Prior to poor economies, consolidation of European tour companies and 9/11 in 2001, our non-Canadian visitation was at 6% or higher. The travel statistics and trends forecast done by the Travel Industry Association of America (TIA) indicates that international visitor arrivals to the U.S. will reach and/or exceed pre-2001 numbers by 2005. Through the RMI contract, we track “product on the shelf”; that is, tourism product offered by all tour operators in each of our target markets. This is compiled in a TRIP Report (Tourism Research Inventory Product) annually by RMI. Each of the four states experienced double-digit percentage growth from FY02 to FY03. Montana has recovered nicely, growing 43% this year to 381,394 overnights, easily surpassing our FY01 level of 294,438. Trade shows that we regularly attend are Pow Wow (USA), RMI Round-Up (USA), Go West Summit (USA), ITB (Germany), BIT (Italy), WTM (UK), and Visit USA Showcase (Italy).


My personal action plan: My personal action plan Which market will I try first and why? What marketing tools will I use? Who will I partner with? Where will I get the information about cultural issues? By when?


Where can we go for more market information?: Where can we go for more market information? Websites, newsletters, publications (pg. 14) Publications about cultural issues (pg. 22) Industry Terms (Appendix A) ITA offices, Visit USA committees (Appendix B,C) State tourism offices, partners, visitor statistics (Appendix D, E, F,G)


Go for it!Go global!Good luck!: Go for it! Go global! Good luck!


International Tourism Marketing Workshop: Presented by: Western States Tourism Policy Council 2003-2005 International Tourism Marketing Workshop