1. The State of Ohio’s
Tourism Industry:
“Visitors are Traveling
and Spending Again”
2012 Ohio Conference on Tourism

4. Wow!

5. Thank You!

6. Quick Overview
TourismOhio:
• Since Last Year’s Conference
– Tourism Funding Model
– Key Accomplishments
– Our Current Budget
– New Partnership Opportunities
Travel Trends:
• Industry Vs. Economy
– Ohio Currents
– National Currents & Outlook

7. Our Industry
• $40 Billion in Total Revenues
• $2.7 Billion in Total State and Local Taxes Generated
• 443,000 FTE’s Supported by Tourism (7% of OH jobs)
Bottom Line: Tourism is a Revenue Generator for OH!
*2011

8. Say “hi” to:

11. Who Are We?
• State’s Destination Marketing Organization
• Premier source of information for travelers
and media about Ohio’s vibrant tourism
experiences, attractions and economy.

12. If We Do Our Job
We enhance the economic health
of Ohio by driving business to
you, thus generating revenue for
the state.

13. How We Do It (10.5 Staff+Agencies)
• Advertising
• Main
• Multicultural
• International
• Public Relations
• Tourism Information Services
• Buckeye Database
• 1-800-BUCKEYE
• DiscoverOhio.com
• Social Media
• Buckeye Fulfillment
Center
• Research

14. Since We Last Met…
• Record R.O.I. = 14:1
• Record Industry Partner Participation!
• Innovation & Partnership
• Online & Social Media Enhancements!
• Mobile Tour – 3nd Year!
• Bronze Anvil, Sabre, & Telly Awards!

15. How Do We Compete?
• Surrounding states currently have an
average budget of $10 million each.
• Michigan’s Tourism MARKETING budget is
$27 million. Office budget total is $32 million.
• We work hard and smart
• We partner with you, and non-traditional
businesses

16. Before I Continue…Write This
Down:
1. Go to DiscoverOhio.com/industry
2. Register for Buckeyeline
3. “Ohio Tourism Industry” FB Group

17. The Continued Basis of Our
Approach:
• UPSELL! - “Too Much Fun for Just One
Day”
• Identifiable Ohio – Differentiate
• Through the eyes of our visitors/target
audiences
• Retail Strategy using New and Trad. Media
• …And the:

18. Tourism Division
Focus Areas for Success
• Industry Partnerships:
– Advertising Co-ops
– PR
– Web/Database
– Telemarketing/Fulfillment
– Multicultural
– Social Media
– Research
– Non-Traditional Partnerships
– Etc…etc…etc…

19. New Opportunities for
FY’13
• Our menu is bigger
than ever!
• Did you grab a 2013
Partnership Book?!
• Most Opportunites
are FREE!
• We will have more
based upon trends
and your needs!

20. The State of the Industry
• Rebounding
Strength
• Resilience
• Recovery
• Release

21. 2011 Re-Cap: Continued growth in
visitor spending
Visitor spending
• After increasing 7.4% in 2010, US$ Billions
Ohio visitor spending expanded $27
$26.3
10%
8%
another 6.5% in 2011, reaching $26 $25.6 6%
$26.3 billion. $25 $24.5
$24.7
4%
2%
• More overnight stays along with $24
0%
-2%
higher prices pushed $23
$23.0
-4%
-6%
accommodations spending up $22 -8%
9.4% in 2011. $21
-10%
-12%
2007 2008 2009 2010 2011
TOTAL % Change
Source : Tourism Economics
Business Day

22. Overnight and Day Markets
Compared
Visits and Spend
2009 2010 2011 %
Total Visitors (millions) 172.45 180.06 181.48 Change
0.8%
Overnight 34.27 35.71 37.39 4.7%
Day 138.18 144.35 144.09 -0.2%
Total Spending (million $) 23,031 24,736 26,336 6.5%
Overnight 9,468 10,298 11,407 10.8%
Day 13,563 14,438 14,928 3.4%
Per Visitor Spending $ 134 $ 137 $ 145 5.6%
Overnight $ 276 $ 288 $ 305 5.8%
Day $ 98 $ 100 $ 104 3.6%

23. SB 314 = Tourism
– Name Change: Office of TourismOhio
– Tourism Funding Model
– Tourism Advisory Board

24. Pilot Funding Model
• Performance-based funding model
• Compare sales-tax receipts year over year
2013 benchmarked against 2012
• Tax receipts are based on NAICS Codes
Restaurants, Hotels, Rental Cars, etc.

25. TourismOhio Budget
• In growth years, TourismOhio will receive up
to $10 million.
• Any increase in Tourism funding will not be
realized until October 2013 for FY14 budget.

26. How Do We Plan?
• Track tax receipts throughout the fiscal
year
• The OhioTourism Fund is Revolving
• Set aside a few million dollars each
fiscal for zero-growth years

27. What Happens in Five Years?
• The pilot funding model terminates end of FY 2018.
• Pilot program to be evaluated and recommendations
made as to whether to make the funding mechanism
permanent.
• If it is recommend to make the funding model
permanent, it could be recommended to establish
TourismOhio as a private nonprofit corporation or a
subsidiary corporation of JobsOhio.

28. Director Search
• Development and Tourism leadership
involved
• Better to find the right candidate than
to hurry
• Have interviewed strong candidates

29. Our Market
• 2011 Visitor Study Highlights
• Industry.DiscoverOhio.com

30. Current Word on the Street
• Occupancy is UP 6.1% in 2011 vs. 2009 YTD (+4.6% U.S.)
• ADR is UP 2.7% (+3.6% U.S.)
• RevPar UP 8.9% (+8.3% U.S.)
• Business Travel is Steadily Improving
• Leisure Holding Its Own in Volume After Soggy Start
• Incremental Visitor Spending is FINALLY going UP
• BUT: Consumer Confidence and Gas Prices are Shaky!

31. Tourism and the National
Economy*
*A special thanks to the US Travel Association and Tourism
Economics for providing much of this data!

32. 2001 – 2011…
One for the books

33. But also a Decade of R’s…
Resilience Renewal Re-Birth
Recovery
Resourcefulness

34. Turning the corner…
But when?
• Another “soft patch”
• Weak housing market
• Americans’ spending plans still on hold
• Weak labor market has weakened again
• Inflationary pressures still high in travel
• Ongoing debt crisis
• Threat of higher taxes

35. Consumer Confidence is on the
rise
The Consumer
Confidence Index is
currently at 70.3, up form
45.5 last year at this time.
90.0 is considered
healthy
1985 = 100
Source: The Conference Board, September 2012

36. Overall Traveler Sentiment IndexTM
saw an uptick in July
April’s overall Traveler
Sentiment IndexTM of 93.5
represents not only a nearly
ten point increase from April
2011’s index of 83.9, but
also marks its highest level
since April 2007 (96.2)
Source: MMGY/U.S. Travel Association, travelhorizonsTM, April 2012

38. US Travel Forecast

39. Younger Americans the Most Positive
Traveler Sentiment Scores about Travel
Source: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011

40. Affordability of Travel Index…
Regains some ground
March 2007 = 100
Gas price rise
Source: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011

41. But travel prices still outpacing
inflation!
Percentage change
through July 2011
Does not include
various fees
YTD TPI = +6.7%
YTD CPI = +2.9%
Source: U.S. Travel Association Travel Price Index

42. Interest in Travel Remains Strong
Traveler Sentiment Scores
Source: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011

43. But affordability of travel remains
elusive
Traveler Sentiment Scores
Positive
Negative
Deep discounts & deals
Source: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011

44. And “money available for travel” not
back to pre-recession levels
Traveler Sentiment Scores
Positive
Negative
Source: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011

45. First Half 2011 Travel Performance…
Pretty good!
Domestic Domestic Domestic Domestic
Volume Leisure Business Spending
Volume Volume
1.9%
2.6%
2.8%
Source: U.S. Travel Association and Tourism Economics
7.8%

46. Leisure Travel Trends

47. Domestic Leisure Visitors…
Exceeded the 2007 high last year
Millions of Person-Trips
Bah!
Source: U.S. Travel Association

48. 56% of U.S. adults planning at
least one leisure trip between
August and January
7 million more travelers
Source: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011

49. Financial factors influencing leisure
travel…
Most not really travel related
Financial Factor Influencing Future % Agree
Leisure Travel July 2011
Price of gallon of gasoline 62%
Price of air travel 59
Meltdown of the U.S. economy 58
High level of credit card debt 57
Expectation of making less money 56
Expectation spouse/partner will lose job 55
High level of personal debt 55
Rising cost of healthcare 51
Size of the national debt 46
Q: To what degree is each of the following financial issues currently affecting your leisure vacation plans over the next 12 months? (Somewhat to
much less likely to travel)
Source: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011

50. Reasons for taking more leisure trips…
3 Rs -- Rest, Relax, Reconnect
• Reconnect with family/fiends (43%)
• Relieve stress/need to relax (34%)
• Break from home/work routine (26%)
• Have put off traveling due to economy – feeling
housebound (25%)
Q: Why are you planning on taking more leisure trips during the next 6 months?
Source: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011

51. Other Leisure Travel Trends
• The “Staycation” has been revived – Regional Travel!
• Balancing Effect with Long-Haul Travel
• Bargain-Hunting “New Consumer” sees your discount
rate as the beginning point of the haggle!
• Explosive adaptation of Smart Mobile and Tablet
technology redefines the marketplace…More are
booking via mobile!
• The Social Media ROI debate rages on, but you must be
there!

52. Outlook through January 2012
• Still willing to travel, but making
adjustments in spending
• Still traveling close to home
• Overnight leisure trips shorter in
duration
• More day trips
• More long weekend getaways
• Plans can change, but…..
Source: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011

53. Vacations/Getaways are Needed
Now More than Ever!

54. Business Travelers…
Not what it used to be

55. Incidence of Business Travel Down 14
Points Over Past 5 Years, but Stabilizing
Percent taking business trip in past year
Source: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011

56. Domestic business travel inches up…
Well below 1998 record high
Millions of Person-Trips
520 508.7
500 494.3
480
461.1
460 447.8
Ouch!
440 431.1
420
400
380
2006 2007 2008 2009 2010
Source: U.S. Travel Association

57. Business travel…
The province of the young
Plan to take a business trip between August 2011 and January 2012
Source: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011

58. Lodging Trends

59. Hotel demand…
Stronger than expected
Percent change in room-nights sold over prior year
2010 2011
Source: Smith Travel Research, September 2011

60. % change in RevPAR through August
2011 -
Getting better
6.1
10.4
8.8
9.2 5.8
10.0% or more
7.5% to 9.9%
5.0% to 7.4%
0.0% to 4.9%
Decrease
Source: Smith Travel Research, August 2011

61. STR Forecasts for 2011 and 2012
ADR drives up RevPAR
Source: Smith Travel Research, July 2011

62. International Visitors…
Welcome back!
• Spend more per trip ($4,000 per overseas visitor)
• Stay longer (18 nights in U.S.)
• $31.7 billion trade surplus
• Stay in hotels (78%)
• They enjoy seeing the America we take for granted

63. International arrivals to U.S. sets new
record!
9 million more visitors than 2000
(in millions)
Source: Office of Travel and Tourism Industries

64. Promoting the U.S

65. Forecasts Through 2013…
Break out the Ouija boards!

66. Total domestic visitors…
Modest growth
*Forecast
Source: U.S. Travel Association; Tourism Economics

67. Domestic leisure visitors…
More solid growth
*Forecast
Source: U.S. Travel Association; Tourism Economics

68. Domestic business travel improves…
But still well below 1998 record high
In millions
* Forecast as of May 11, 2011
Source: U.S. Travel Association and Tourism Economics

69. International and Overseas arrivals
continue strong as well
*Forecast
Source: U.S. Travel Association; Tourism Economics

70. Summary…sustained, but slow growth
expected in 2011…and 2012 and 2013
Domestic Domestic International Domestic International
Leisure Business Visitors Spending Spending*
Volume Volume
1.2%
2.4%
5.8%
7.3%
10.0%
*Excluding international airfares
Sources: U.S. Travel Association; Oxford Economics/Tourism Economics;
U.S. Department of Commerce-Office of Travel and Tourism Industries

71. 42 million “not sures”…
Must be in the marketplace
Not Sure
18%
42 Million
No Plans to Travel
26%
60 Million
Q: Over the next 6 months, do you plan to take any leisure trips of at least 50 miles one way from home or that will include an overnight stay?
Source: U.S. Travel Association/Ypartnership, travelhorizonsTM, July 2011

72. Just a couple more thoughts
before you can get ready for
tonight…

73. Tourism Division
A Few Messaging Opportunities
• VALUE!!!
• Authenticity
• Focus on “Re” - Connections
• Ease of Travel – Time
• Social Media – Be Strategic
• Show Your Mobility
• PACKAGE!!!
• INTEGRATE!!!

74. Tourism Division
Questions?

75. Tourism Division
Thank You!
Amir Eylon
Amir.Eylon@Development.ohio.gov
(614) 466-3704
DiscoverOhio.com/industry
(Buckeyeline!)

76. Tourism Division