Department of Tourism Breakfast Briefing Presentation

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DESTINATION REPORT


MISSION Attract and retain visitation to the Cayman Islands by developing and implementing sustainable policies and initiatives in collaboration with all stakeholders for the benefit of our people.


Role & Functions of the DOT Product Development & Management

Marketing & Promotions

Strategic Framework & Technical Policy Advice

Public Relations, Image Management & Crisis Communication s

Research & Information Management


Our Partners


Cayman Islands 5 YR GROWTH Comparison 10.8%

8.5% 7.4%

6.9%

6.6% 4.9%

6.7%

4.6%

4.3%

3.9%

4.1%

3.2%

1.7% 0.7% 2013

2014

2015 World

Caribbean

0.0% 2016

Cayman Islands

2017 Source: UNWTO, CTO, Cayman Islands Immigration



USA 2017 Arrivals 340,571 YOY Diff: + 40,384 % Increase: 13.4%

Northeast Midwest Southeast Southwest West Coast

2016

2017

% Diff.

95,721 56,317 48,394 54,187 18,314

110,763 65,843 61,430 61,098 19,894

15.71% 16.91% 26.94% 12.75% 8.63%


2018 PRIORITIES


CIDOT Overarching Priorities • Good Governance • Implement National Tourism Plan • Advance Aviation • Expand markets in Europe • Launch new CAL market from USA

• Business Intelligence and Reporting

• Foster greater understanding and analysis of travel behaviors • Increase brand awareness and visitation

• Global Strategic Direction

• Develop integrated global planning


Key Travel Industry Growth Drivers • Healthy consumer spending: Amid low inflation and low unemployment, the US economy seems poised to sustain 2 to 2.5 percent growth through 2018. Consumers are at the heart of that growth. Incomes are rising, along with home values and stocks. That points to more income and more confidence to spend it. • Intense airline competition: Downward pricing pressures are at play thanks to a mix of international competition, and low-cost entrants. That may be tough news for airline industry margins, but low fares drive spending throughout the travel sector. • Healthy corporate travel demand: Strong economies drive business activity. Business travel is projected to grow by more than 6 percent in 2018. • From products to experiences: Travel is outpacing the demand for goods. Spending on recreation, travel, and eating out is up, while spending on many durable goods and staples like clothing is down. • Mitigate risk & plan for success: • Vulnerable travel Ecosystem • Innovation Deloitte – 2018 travel and hospitality industry outlook


The Consumer Landscape • Bombardment of negative news on global unrest • Terrorism • Un-predictable Weather - Climate change • Fight for civil rights (#metoo, #blacklivesmatter #parkland…) + the superficiality of hyperconnectivity and social media Luxury travelers are looking for ways to escape these realities and reprioritize what matters to them on a personal level.


2018 Marketing Priorities • • • • • •

Achieve Visitation Targets Secure and Grow Aviation Leverage Trade Relationships Renew Focus on Group Travel Digital Leadership Innovative Promotions


Visitation Achieve Visitation Target • Address Seasonality • Year round traveller

• Increase targeted segments • Affluent, Family, Couples

• Grow Repeat Visitation • Focused LATAM Strategy


FLAME

PROTECT & GROW

BREAKTHROUGH

INNOVATE & DIFFERENTIATE

differentiation + esteem

GET KNOWN

FUEL knowledge + relevance


Leading The Way For $200K+

differentiation + esteem

FLAME

140

Cabo San Lucas

Puerto Vallarta

60

85

FUEL knowledge + relevance


PUSH THE BASE: $100K+

differentiation + esteem

FLAME

125

Puerto Vallarta

Cabo San Lucas

80 90

FUEL knowledge + relevance


LOST RELEVANCE WITH COUPLES

differentiation + esteem

FLAME

150

Puerto Vallarta

Cabo San Lucas

70 85

FUEL knowledge + relevance


STRENGTH IN FAMILIES

differentiation + esteem

FLAME

125

Cabo San Lucas

Puerto Vallarta

80 90

FUEL knowledge + relevance

110


Visitors Intention to Return to the Cayman Islands STAYOVER

2017, 2.8% 2016, 3.2%

2016, 96.8% 2017, 97.2%

2017, 28.1%

Yes

2016, 40.1% 2016, 59.9% 2017, 71.9%

Yes

CRUISE


Focused LATAM Strategy • Grow destination awareness among trade and consumers. • Continue Marketing promotional efforts in our targeted (3) Latin American primary markets 1. Argentina 2. Brazil 3. Mexico


MEXICO – Why Caribbean? • Nearby to destination • Affordable Packages from Mexico City, Guadalajara and Monterrey, three local primary markets for the DOT in Mexico • Population over 120 million

• Cuba was one of the most visited destinations by Mexicans in 2016 • Mexicans will spend less time in USA in 2017 – 2018 therefore Caribbean is an accurate alternative for them

• 20% of the population belong to class A and B+ and Mexico leads the list of countries that prefer a luxury hotel with 38%, then this segment fits to Cayman Islands offerings • The volume of outbound tourists from Mexico is expected to rise at a forecast period CAGR of 8.3%, to reach 24.6 million by 2020. • In Mexico there is an average of 14 vacation days per year. • 3-hour flight from Mexico City to Miami


Aviation Secure and Grow Aviation • Grow USA West Coast access • Increase capacity from Canada • Develop new air access from Europe


Relationships Leverage Trade Relationships • Renewed trade engagement strategy • Secure new destination partnerships • Dive

• Optimize Wholesaler Partnerships


Groups Renew Focus on Group Travel • Dive Travel • Meeting, Incentive, Conferences and Exhibitions (MICE) • Sports Tourism


Digital Digital Leadership • Advance digital presence • visitcaymanislands.com • Social Media strategy



Promotions Innovative Promotions • Influencer Programming • Creative Redevelopment • Couples Engagement


Couples Engagement


Grace & Trai byers Partnership Objective “Increase the Cayman Islands profile as a couples destination by leveraging the mass appeal of Grace & Trai Byers’ connection to the destination”.


GRACE AND TRAI


Grace and Trai • Created and executed a “Romance” advertising campaign around celebrities Grace and Trai Byers • Campaign ran on print, digital and out of home advertising • Generated additional PR coverage


Cayman Vows Magazine 2017 2017 Content Marketing Strategy Winner – Impact Award (IMA)


Grace & Trai (Print)



ACCOLADES



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