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