City Travel Briefing: Chicago

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INTRODUCTION
Key findings
More emphasis on
marketing
The newly formed Choose Chicago is working to boost Chicago’s profile
among tourists, which will help the city achieve its goal of 50 million visitors by
2020. The opening of more international marketing offices will help the city
move into the top five most visited cities by international tourists by 2020.
Domestic tourism
2011 saw a strong recovery in domestic tourism, led by robust growth in
experiences growth in 2011 leisure travellers. This growth reversed three years of declines. However,
domestic trips are still below their 2007 peak.
Being competitive in
conventions
At the height of the recession, in 2009, conventions moved to Las Vegas and
Orlando to save money. The Illinois General Assembly responded by passing
legislation that reduced costs at McCormick Place (the largest convention
centre in the US).
Slow recovery for hotels
Chicago and its surrounding suburbs is the third largest hotel market in the US
according to Smith Travel Research, behind Las Vegas and Orlando. While a
recovery in average daily rates and occupancy rates began in 2010, it will take
some time for both to recover to their peak 2007-2008 levels.
O’Hare Modernization Plan The O’Hare Modernization Plan continues, with expansion in capacity and
continues
fewer delays, although the addition of a fourth runway is still being debated by
the government and airlines.
Successful NATO Summit
© Euromonitor International
While there were skirmishes between protesters and police during the NATO
Summit in May 2012, there were no significant incidents and most consider the
event a success for Chicago. The publicity surrounding the event could lead to
more visitors the city, especially foreigners.
TRAVEL AND TOURISM: CHICAGO
PASSPORT 1
KEY FACTS
SWOT: Chicago
STRENGTHS
WEAKNESSES
World class attractions
Transportation hub
 From museums to
sporting events to
festivals, Chicago has
world class attractions
as well as a reputation
for gastronomy.
 O’Hare, one of the
busiest airports in the
world, is a strength for
the city, making it
accessible from all
corners of the world.
OPPORTUNITIES
A successful NATO
 The success of hosting
the NATO Summit in
May 2012 put Chicago
in a positive light on the
international stage,
which could lead to
more visitors and other
high profile events.
© Euromonitor International
Lack of international
Geographic location
recognition
 Chicago does not have  Located in the middle of
the iconic status that
the US, which is not
New York City or Los
densely populated,
Angeles have, so many
Chicago has fewer
foreign tourists skip the
people within driving
city in favour of
distance and is a bit
exploring the coastal
more difficult for
cities.
international tourists to
reach.
THREATS
Stronger emphasis on
marketing
 With a new marketing
entity, a new
commercial and more
foreign marketing
offices, Chicago is on
the right track to boost
its profile domestically
and internationally.
Weak US recovery
Competition for
conventions
 The bulk of domestic
 Chicago continues to
tourists come from
feel competitive
surrounding states that
pressure for convention
were hard hit during the business from Orlando
recession. An economic and Las Vegas, which
relapse could cause
can be cheaper
domestic tourism to
destinations for
decline.
meetings.
TRAVEL AND TOURISM: CHICAGO
PASSPORT 2
TOURISM FLOWS
2010 is a year of recovery for spending
 Tourists to Chicago spent a
total of US$11 billion in 2010 –
89% of which came from
domestic tourists.
 Tourism spending and visits
were both impacted by the
recession in 2009, but 2010 saw
a return to growth. However,
tourism spending for domestic
and international tourists
remained lower than levels in
2008.
Source: Chicago Convention & Tourism Bureau, Travel Industry Association of America
© Euromonitor International
TRAVEL AND TOURISM: CHICAGO
PASSPORT 3
TOURISM FLOWS
Inbound arrivals
Top International Source Markets for Chicago 2010
Rank
Overseas
International
1
UK
Canada
2
Germany
UK
3
Japan
Mexico
4
China
Germany
5
India
Japan
6
South Korea
China
7
France
India
8
Spain
South Korea
9
Brazil
France
10
Australia
Spain
 The top overseas markets, which excludes visitors
from Canada and Mexico, were the UK, Germany
and Japan.
 According to the State of Illinois, 158,000 visitors
came from the UK to the state in 2010, and 71% of
those used Chicago as their port of entry. They
spent US$123 per day and had an average
household income of US$117,500.
 91,000 Germans came to Illinois in 2010,
according to the same source, with 57.6% using
Chicago as the port of entry. Their average daily
expenditure was US$67 and they had an average
household income of US$102,900.
Source: The Illinois Bureau of Tourism
Note: Overseas excludes travellers from Canada and Mexico
© Euromonitor International
 In 2010, 1.1 million overseas visitors visited
Chicago, a growth of 2%. This is still below the
record of 1.4 million in 2008 and 2000.
 According to the State of Illinois, 97,000 visitors
came to the state from the People’s Republic of
China and Hong Kong, with 51.7% arriving via
Chicago. Their average daily expenditure was
US$136 and their average household income was
US$83,100.
TRAVEL AND TOURISM: CHICAGO
PASSPORT 4
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