Industry & Analysis’Spotlight Series

July 16, 2013

Speakers

Scott KennedyAerospace

Office of Transportation and Machinery

Isabel HillTravel and Tourism

Office of Travel and Tourism Industries

Industry & Analysis’Spotlight on

Travel and Tourism

July 16, 2013

Prepared by Office of Travel and Tourism Industries

Travel and Tourism

Impact of Travel on the U.S. Economy(2012)

Total Tourism Sales: $1.46 trillion

Total Tourism Employment: 7.8 million

Tourism Percentage of GDP: 2.8%

Total Tourism Exports: $165.6 billion

Balance of Trade Surplus: $47.5 billion

Percentage of Services Exports: 25%

U.S. Competitiveness in Travel and Tourism

Source: United Nations World Tourism Organization (Jan. 2013)

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 1230%

35%

40%

45%

50%

55%

60%

65%

70%

Advanced Economies

Emerging Economies

Brand USA

• Private sector organization funded in part by up to $100 million in fees on travelers from visa waiver countries

• OTTI is the liaison to Brand USA.

• Actively marketing in international markets to increase demand.

• Working with partners and destinations from across the country and with federal agencies.

• 5 Primary Sections:­ Promoting the United States­ Enabling and Enhancing Travel and Tourism

to and within the U.S.­ Providing World-Class Customer Service and

Visitor Experience­ Coordinating Across Government­ Conducting Research and Measuring Results

National Travel and Tourism Strategy

• Goal: Attract and welcome 100 million international visitors, estimated to spend $250 billion, annually by the end of 2021, and encourage Americans to travel within the U.S. and its territories to see all that our country has to offer.

NEI Priority Markets

Origin Country 2012 Receipts/ ForecastPer Traveler (18/12)

Opportunities• Global Growth – global travel and tourism is expected to

grow by 4% through 2020 (UNWTO)

• Promotion – Brand USA active engagement in multiple markets will help us stay competitive with other countries that have ongoing national marketing campaigns.

• Changes in Travel Facilitation Policy – risk-based screening identifies and removes low-risk travelers through trusted traveler programs.

• Private Sector Engagement – provides insights, sets priorities.

• Collaboration – strong working relationships within ITA and across agencies will increase efficiency.

Risks and Issues• Economic downturns in source markets (resulting in lower household incomes).

• Natural and man-made disasters in the United States.

• As visitation continues to increase to our country, travel facilitation systems may get overwhelmed, resulting in long wait times for visas, long lines upon entry, etc.

• Ability of Brand USA to successfully raise $100 in order to receive the full matching funds.

• MDCP Grants­ NTA – promote the U.S. in China­ Capital Region USA – create marketing partnerships

with overseas tour operators to increase hotel bookings­ U.S. Travel Association – support meetings and events­ Mississippi River Country – attract Japanese visitors to

the 10 MS River states

Examples of ITA and Interagency Activities• Webinars with the Travel and Tourism Team

– FY12: Australia, China, Germany/France, Japan, Korea, Russia, UK, Travel Forecast– FY13: Canada, Mexico, Taiwan, Brazil, Traditional vs. BRIC markets, Travel Forecast

• Promotional and Educational Events– IPW and other trade shows– Working with local CVBs– Industry roundtables– Trade Associations

Research and Analysis

Summary tables highlighting specific tourism trends

Market and regional profiles

Forecast of international travelers to U.S. through 2018

TINews email updates on travel and tourism

http://tinet.ita.doc.gov

Travel and Tourism StaffIsabel HillDirectorPhone: 202-482-5120Email: Isabel.Hill@trade.gov

Ron ErdmannTeam Lead, ResearchPhone: 202-482-4554Email: Ron.Erdmann@trade.gov

Melissa BennettProgram AnalystPhone: 202-482-4004Email: Melissa.Bennett@trade.gov

Julie HeizerTeam Lead, Industry RelationsPhone: 202-482-4904Email: Julie.Heizer@trade.gov

Mark BrownMarket Research AnalystPhone: 202-482-4754Email: Mark.Brown@trade.gov

Richard ChampleySenior Research Analyst,Phone: 202-482-4753Email: Richard.Champley@trade.gov

Curt CottleInternational Trade SpecialistPhone: 202-482-4601Email: Curt.Cottle@trade.gov

Jennifer KirschInternational Trade SpecialistPhone: 202-482-2404Email: Jennifer.Kirsch@trade.gov

Margie ParkerProgram AssistantPhone: 202-482-2408Email: Margie.Parker@trade.gov

John TerpeningEconomistPhone: 202-482-6390Email: John.Terpening@trade.gov

Claudia WolfeEconomistPhone: 202-482-4555Email: Claudia.Wolfe@trade.gov

Schermin SmileyAdministrative SpecialistPhone: 202-482-4866Email: Schermin.Smiley@trade.gov

Industry and Analysis’Spotlight on

Aerospace

July 16, 2013

Prepared by Office of Transportation and Machinery

AerospaceThe aerospace industry includes:

Large Civil Aircraft (e.g. Boeing 737) Business Jets General Aviation Aircraft (including helicopters) Aircraft Engines Commercial Satellites and Launches Unmanned Aerial Systems Aerospace Parts Aerospace Products and Equipment (e.g. NextGen Air Traffic

Management)

NEI Priority Markets: (Figures based on Year-End 2012)

*Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and UAESource: U.S. Census Bureau

1. European Union $33.2 B2. GCC * $12.2 B3. China $9.1 B4. Japan $9.0 B5. Brazil $6.8 B6. Canada $6.6 B7. Korea $3.9 B8. Turkey $2.0 B9. Russia $1.7 B10. India $1.5 B11. South Africa $534 M

U.S. Aerospace Exports to Target Markets(“Green Box” Countries)

Opportunities• In general, U.S. aerospace manufacturers see continued global growth for their

products. Looking ahead over the next 20 years, Boeing sees demand for 35,280 new airplanes, valued at $4.8 trillion (at list prices).

• Growing markets like China, India and Latin America show promise for increased exports:

Aircraft Spare parts Maintenance services Flight simulators Airport equipment, including air traffic management

• U.S. manufacturers are world leading producers of new technologies:

Unmanned systems Green technologies Composites NextGen Air Traffic Management Communication and imaging satellites

• Reform of U.S. export control laws simplifies the process for U.S. companies to export many products that were previously on the more strictly controlled ITAR list.

Risks and Issues• Foreign governments seeking to create/bolster their domestic industries

create programs to subsidize their manufacturers.

• Foreign governments also create OECD-inconsistent programs to finance their aerospace exports.

• The aerospace industry is highly regulated both in the United States and abroad. Fees in foreign markets can be an issue.

• Many of the fastest growing markets rate poorly on ease-of-doing business rankings.

• Many sales campaigns and infrastructure projects may take years to come to fruition.

• Investment in the domestic market may be necessary to win a sale (may be mandated offsets or just local business practice).

• U.S. products are expensive (but high quality) (e.g. easier to buy 1 non-U.S. produced helicopter a year than 1 U.S. helicopter that will last 10 years).

Examples of ITA and Interagency Activities• Supporting Ohio Aerospace Industry’s MDCP

– U.S. / Canada Aerospace Summit – Educational Seminars – Export control reform, financing, etc.– Proposed trade mission to Brazil 2014 (open to all U.S. companies)

• Coordinate with USTR on highest value WTO dispute settlement case regarding European subsidies to Airbus

• Support USTDA activities like Latin America Summit

• Promote U.S. exports at aerospace trade shows, including Farnborough and Paris, other shows like Singapore and Dubai, and the annual Air Traffic Control Association conference and the annual Space Symposium

• Support FAA participation at the UN ICAO meetings

• Represent Commerce during drafting of National Space Policies to promote pro-export language

• Participate in OECD meetings on aircraft financing

• NextGen Vendor’s Guide

U/S Sanchez at the opening of the U.S. Pavilion at the Farnborough Air Show (June 2012)

DAS Chandra Brown opening the Alternative Aviation Fuels Pavilion at the Paris Air Show (July 2013)

Aerospace Team StaffScott Kennedy; Aerospace Team Leader Scott.Kennedy@trade.gov; 202-482-1474

Kim Wells; Commercial Space, Middle East, North Africa, Aircraft Engines, Export ControlsKim.Wells@trade.gov; 202-482-2232

Alexis Haakensen; Aircraft Finance, General Aviation, Sub-Saharan Africa, Asia, Latin America Alexis.Haakensen@trade.gov; 202-482-6235

Fred Elliott (currently away on detail); Large Civil Aircraft, Aircraft Parts, Offsets, Export Control, Aircraft Subsidies, EU, Canada, Japan Fred.Elliott@trade.gov; 202-482-1233

Jonathan Alvear; NextGen Air Traffic Management, Aviation Security, Airport Infrastructure Jonathan.Alvear@trade.gov; 202-482-4125

Melissa Grosso; Global Aerospace Team Leader Melissa.Grosso@trade.gov; (860) 638-6955

CS Aerospace Team:

http://trade.gov/mas/manufacturing/OAAI/index.asp