Covering the Inbound Tourism Industry Since 1996
by Tom Berrigan
by Tom Berrigan
Canadian rapper Drake (born Aubrey Drake Graham) is singlehandedly changing the media channels of distribution priorities by which a major destination, Toronto, promotes itself. And in doing so, one study says, he has become responsible for generating about $440 million of the city’s $8.8 billion in annual tourism revenues.
The Toronto-born Drake, who is also a singer, songwriter, record producer, actor, and entrepreneur, initially gained recognition as an actor on the teen drama television series “Degrassi: The Next Generation” in the early 2000s.
His growing audience and popularity has reached the point that, last year, his “More Life” album generated more than a billion streams in a month—from within the United States alone.
In a recent Vice News report, marketing and branding consultant Gordon Hendren said that Drake’s influence is responsible for about 5 percent of the Toronto’s $8.8 billion total annual tourism income. This translates into some $440 million coming into the city, due to the way he serves as a representative for the city, its Toronto Raptors NBA team and various restaurants and clubs around the city.
Said Hendren: “He’s helped to rebrand the city … He’s kind of made himself the same as Toronto.”
For more, click on the link to this Billboard video news report on the subject: https://www.billboard.com/articles/columns/hip-hop/8464298/drake-5-percent-toronto-tourism-economy-expert
by Tom Berrigan
While the record-making outbound travel numbers to the United States over the past decade by Chinese travelers have overshadowed those of neighboring India, the latter has grown steadily and strongly, establishing itself as the Number 9 overseas source market for inbound travel to the USA. Interestingly, the market has been able to achieve this status even though less than 10 percent of air service to the United States from India is non-stop.
This and more information is contained in the most recent report from Brand USA on India Market Trends is rich in detail with facts and figures for U.S. travel suppliers interested in selling product to India, as well as a handy tool for companies already in the market seeking to know more. The INBOUND Report has condensed
India’s Growth Potential—Some Key Numbers:
Source(s): Brand USA India research; CIA World Fact
Indian Traveler Profile:
Main Holiday Seasons:
April – July:
October – November:
Fall Holidays
December:
Consumer Trends:
Source(s): B2C/B2B surveys in collaboration with travel trade media partners/tour operators/pan India travel trade database; UN World Tourism Organization (UNWTO)
Consumer Trends 2:
Source(s): B2C/B2B surveys in collaboration with travel trade media partners/ tour operators/pan India travel trade database
Digital Trends:
Source : Internet & Mobile Association of India (IAMAI)
Increasing Airline Lift—Only 8.6% from India is non-stop
Most of the traffic between India and the U.S. travels via an intermediate hub— only 8.6 percent of India-U.S. traffic is non-stop.
Via Atlantic:
British Airways (49 Weekly Flights, 26 U.S. cities)
Directly to USA:
Source: Booking.com research
Increasing Airline Lift—No. 2
At the Indian end, 50 percent or origin and destination traffic is ticketed to/from Delhi or Mumbai.
Via Pacific:
Cathay Pacific (48 Weekly Flights, 6 U.S. cities)
Singapore Airlines (99 Weekly Flights, 4 U.S. cities)
Source: Booking.com research
Via Gulf
Emirates Airlines (176 Weekly Flights, 11 U.S. cities)
Etihad Airways (172 Weekly Flights, 11 U.S. cities)
Qatar Airways (102 Weekly Flights, 10 U.S. cities)
Turkish Airlines (98 Weekly Flights, 9 U.S. cities)
Source: Booking.com research
Major Gateways:
Source(s): Brand USA India Research
Industry Overview—Distribution System Players:
Working with the Travel Trade:
Cultural Nuances:
The Market’s Potential:
by Tom Berrigan
The Hawaii Tourism Authority (HTA) has announced that it is terminating its contract with president and CEO George Szigeti. The announcement was made June 28, during an HTA board meeting. A spokesman for the authority said that Szigeti’s contract, which was supposed to last until June 2020, was terminated without cause. Szigeti’s last day will be Oct. 31, after which he will receive a severance package worth of six months of pay.
Apparently, the decision did not exactly come as a surprise to Szigeti, who told news outlets, “I’ve been in discussion with the board and that’s why we mutually agreed upon a termination without cause, and they made a decision today that they want to take another direction, and I respect the board.” he said.
He added, “It’s been a good three-year run with record arrivals, record spending, record tax revenue back to the state, record access back to the state with the seats going from 10.5 to 12 million with new airlines coming in, and the most important thing is record job creation for our local people.”
Another Side of the Story: Although the public statements of both Szigeti and the HTA board members were polite and civil, news accounts brought up the fact that a state audit had criticized spending by HTA executives. And last December, the state Ethics Commission fined several of the authority’s executives, including Szigeti, for failing to report free travel upgrades. He was fined $1,750 for getting courtesy upgrades to business class on Japan Airlines.
The tenure of Szigeti, who took over as head of HTA in May 2015, was filled with some bumpy spots. Within seven months, five positions were eliminated to meet a $1.3 million administrative cap and a brand manager resigned. He also fired the popular Keli’i Wilson, a native Hawaiian, from her position as director of cultural affairs. Wilson had been in the post for nearly 10 years.
Before joining HTA, Szigeti had served as president and CEO of the Hawaiian Lodging and Tourism Association. Previously, he was president and CEO of Hawaii-based Better Brands.
by Tom Berrigan
Pat Moscaritolo, CEO of the Boston Convention and Visitors Bureau, to Leave after 28 Years—It was Beginning to Look Like a Steady Job: When Patrick Moscaritolo announced recently that he will retire from his post as president and CEO of the Boston Convention and Visitors Bureau on Valentine’s Day next year, completing 28 years to the day on the job, it prompted many of us who’ve observed the Boston brand reach a place of pre-eminence under his tenure: Was there ever anyone else who held the job that represents and sells and markets the brand?
Indeed, among famous Boston brands, Moscaritolo has held his job as president and CEO of the Boston brand longer than Boston’s late Mayor Thomas Menino held his job (1993-2014); longer than the tenures of Boston Celtics NBA Hall of Famers Bill Russell (13 years) and Larry Bird (13 years); longer than the run the legendary Bobby Orr had with the Boston Bruins (10—he also spent two years with another team that will not be named); longer than Tom Brady has been with the NFL’s New England Patriots (17 years); and longer than the World Wide Web has formally existed.
And while Moscaritolo has led his team for a generation, he can’t really be classified as part of an era, or of a specific demographic group. For, a major reason that he has survived—indeed, prospered—as the head of one of the USA’s marquee CVBs, is what he told us near the end of a lengthy interview recently: “About every eight to ten years, Boston re-invents itself.” This means, roughly speaking, that the Boston bureau has experienced nearly three-and-a-half iterations under his leadership.
What follows is INBOUND’s attempt to make coherent the main points that Moscaritolo stressed during our lengthy discussion; through the uploading and review of annual reports, board presentations and numerous e-mail messages that were more briefings than messages; and digressions that ranged from how Richard Branson became a personal friend to jokes about what an economist is, to how he got two baseball legends, Joe Dimaggio and Ted Williams, to autograph the same baseball.
Born and raised in East Boston, a part of the city that welcomed immigrants from Europe for years, Moscaritolo is from a family with deep roots in the community in which he grew up, including, up the street from the late Tony Conigliaro and his brother Billy—the former was considered a sure bet to set major league home run records until he was hit in the face with a pitch that effectively cut short his career, while Billy went on to win a World Series Championship rings with the Oakland Athletics.
The Moscaritolo family operated a restaurant for some 70 years and a liquor-wine-beer retail store for more than 50 years. Pat earned his way into the prestigious Boston Latin School—founded in 1635, it is older than Harvard— graduating with honors. He then went on to Boston College, where he was a magna cum laude graduate, and then on to the London School of Economics, where he received his Master’s Degree in economics. His professional resume is impressive from the start
He went on to teach for two years at the State University of New York in Albany, then from 1968-1970 and then returned to Boston and worked for Gov. Francis Sargent’s Economic Development Office. He was later part of a consultant team working on economic redevelopment projects. “Probably the simplest way to say it was that I taught political and economic development and political economy at the university level and then went out and did it for six years.” Near the end of the 1970s, Moscaritolo joined the Administration of Gov. Michael Dukakis, and heading up his Federal State Relations Office in Washington, D.C. “The common thread,” he explains, is “economic development teaching, preaching, implementing it at the city level and then at the state level.” So, despite a few short-term tenures elsewhere, he told us, “I’ve been tethered to Boston.”
While still in D.C., he ended up spending time dealing with the U.S. Department of Transportation and the old Civil Aeronautics Board in order to help Logan International Airport get back its London-Boston routes. (This was before there was an Open Skies agreement between the U.S. and the UK; instead, there had been a bilateral treaty which changed that. Boston’s Congressional delegation, which included the then-Speaker of the House, Tip O’Neill, worked to reverse the treaty.)
He then joined The Massachusetts Port Authority, or Massport, as director of Logan International Airport, where he was able to convince different constituencies in Boston of the economic importance of international inbound travel by telling them, “Every time those planes land at Logan, the cash register goes off and the port authority makes lots of money from it.” He was also able to show that the per capita spend of international visitors was higher than domestic travelers.
That message resonated with the Boston Convention and Visitors Bureau when its board of directors went looking in 1990 for someone to succeed its first and only president and CEO—the departing Bob Cumings, who had held the job since 1975.
When board members at the CVB suggested to Moscaritolo that he apply for the job, he eagerly seized the opportunity, for he saw in the move a chance to be the president of a business, albeit in the non-profit sense of the word: “Massport was fabulous. I liked it … but the fact that I could come to the bureau and ‘run my own company’—that’s what it was. It was my desire to run a company that, while not a not for-profit … I could do this, and I saw it as kind of an extension of what I was doing at Logan.”
Because of his success at Logan Airport, making the move to the bureau, he told INBOUND, “was more like a business decision.” To him, “it seemed kind of natural because I had the experience in the aviation world, and in developing the air routes, I think that’s what interested the CVB board in convincing me to apply (for the job) and in selecting me.”
One way in which he fosters such collaboration is that he answers his own phone—no third party, no voice prompted message, no recorded menu options. Everyone can (and does) contact him at any time and in any place. This is a daunting challenge at times, as there are more than 60 people on the Boston CVB’s board of directors, and they represent every conceivable sector and sub-sector of the industry—from hotels and restaurants to ground tour operators, the Boston Red Sox, and some of Boston’s universities and industry suppliers.
But it has also enabled Boston’s heterogeneous tourism community to connect those who want to tap into the growing Chinese market through programs that interact with the 21,000 Chinese students who go to school in Boston and elsewhere in the state (“I want every one of them to be a sales person for Boston.”). Moscaritolo’s focus on China, by the way, is another example of how his ability to translate its potential into economic development terms—buttressed by fact-based economic models—is working to re-prioritize overseas marketing emphasis to attract more Chinese visitors who, the spend data tells him, makes it a lucrative market for Boston’s tourism community. As a result, China is now the city’s top overseas market—its number of visitors to Boston has gone from 31,000 in 2007 to 265,000 in 2017, on track to reach Moscaritolo’s goal of 500,000 by 2021.
Similarly, the tourism community realizes that the Boston Red Sox don’t mean just baseball games. The brand and its location also mean special events, tours, tour stops and locations for television and movies that bring visitors.
Collaboration with competitors, too? Of course. Twenty years ago, not long after Mike Gallagher and Mike Morey launched their CityPASS discounted multiple attractions program in San Francisco and Seattle, Moscaritolo got a call from John Marks (from 1987 to 2005, he was president and CEO of the San Francisco CVB—now the San Francisco Travel Association) who told him how great the CityPASS concept was working in San Francisco and Seattle, and how the company would be looking for an East Coast destination in which to launch the product. The result was that Boston was able to get into the program quickly and, along with other early CityPASS destinations, began developing co-op programs that would not have been possible before.
15 Technology Parkway South
Suite 205
Norcross, Ga 30092