International Marketing

INTERNATIONAL MARKET OVERVIEW

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In 2007, the Masachusetts Office of Travel and Tourism implemented a public relations and marketing campaign to position Massachusetts as a preferred visitor destination in the core markets of the United Kingdom, Ireland, Germany, and Canada, as well as the secondary markets of Japan, France, the Netherlands, and Italy. In addition, MOTT actively monitors the emerging markets of Spain, Argentina, and Brazil.

MOTT has developed a comprehensive market effort focusing on the travel trade (travel agents and tour operators), consumer and trade media, and consumer-driven promotional efforts.

Below is an overview of core and secondary international markets.

Canada

• #1 source of international visitation to the USA; 583,000 visitors traveled to Massachusetts in 2005
• Canada is a resilient market that provides visitors to all states and cities
• Reletavely small population (31 million), majority of Canadians live within close proximity to a US border
• Strength of Canadian dollar provides great opportunity for Canadians to travel to USA
• According to Statistics Canada, 16 million Canadian visitors traveled to the USA in 2006, which was an increase of one million visitors

U.K.

• #1 source of overseas visitation to the USA
• USA is most popular long-haul destination for the British traveler
• Boston is closest transatlantic getaway to London
• #1 source of overseas visitors to Massachusetts
• Massachusetts if ranked the fifth most visited state in the USA
• Despite strong economy, it is a market that is price driven
• Strong British Pound Sterling makes American holidays very affordable
• There are approzimately 70-80 brands and tour operators (much higher than other markets, ile. Germany with 12-15 brands/operators)

Germany

• Ranked #2 in terms of overseas visitation to the USA
• German visitation suffered during economic slowdown during the late 90s
• However, the strong euro once again makes the USA an affordable destination
• The German market is dominated by three main tour operators with a combined market share of more than 65%

Ireland

• Relatively small population of 4.2 million; however, in 2006 one in seven Irish traveled to the USA
• Boston is one of the most popular destination for Irish traveling to the USA
• Social Security bonds (known as SSIAs) have provided many Irish with additional income that is anticipated will be used for travel
• The Irish economy is booming and the strong euro makes America an affordable destination
• There are three main operators located in Dublin that sell the UDA as well as other smaller niche operators

France

• Ranked #6 in overseas visitation to the USA
• 2007 arrivals suffered a serious setback due to visa issues; however, the strong euro coupled with the fact that visa issues have been rectified suggest that 2008 will be a very strong year
• Boston and Massachusetts have a strong and positive brand image in France; the French are aware of the educational institutions and cultural sophistication of the region
• The area's image has been bosted by French President Nicolas Sarkozy vacationing in nearby New Hampshire

Italy

• Deeply affected by 9/11, Italian visitation to the USA and Massachusetts dropped considerably
• Many tour operators ceased to feature the region and a considerable amount of visibility was lost
• Preference for the character properties of Massachusetts/New England
• Likely to combine a long-haul visit to the USA with a visit to a tropical island as demand for beach and relaxation, away from the daily routine, is important to the Italian traveler
• The strong euro is once again incentive for Italian to travel to the USA

The Netherlands

• Ranked #9 in overseas visitation to the USA
• Recently introduced new flight to Hartford, CT on KlM is important for Massachusetts, especially Central & Western Massachusetts

Japan

• Ranked #4 in overseas visitation to the USA
• Vast majority of these arrivals go to Hawaii and the West Coast
• Opportunities with Japanese Red Sox players who have raised awareness of Boston and Massachusetts

Spain

• A secondary emerging market that has experienced steady growth in visitor arivals to the USA since 2004
• Increased air capacity with direct service Madrid/Boston is advantageous
• Direct service stimulating business traffic and development

Argentina

• Population lives in largely urban areas (mainly Buenos Aires) and is potentially easy to target
• Projections from Department of Commerce that Latin America leisure travel will increase

Brazil

• Largest market of visitor arrivals from Latin America to the USA
• Since 2003 USD has fallen over 50% against the Brazilian Real making the USA an attractive/affordable destination
• However, economic instability is still problematic for marketing
• Is considered to have the largest potential (of Latin America) for travel growth to the USA