AMAZING The mission of the Arizona Office of Tourism is to strengthen and grow IS HAPPENING HERE. Arizona’s economy through travel and tourism promotion.

For information regarding the agency’s programs, contact the Public Information Officer at 602.364.3723. visitarizona.com | tourism.az.gov

Sources: Tourism Economics, Longwoods International, Dean Runyan Associates, Bureau of Economic Analysis and Bureau of Labor Statistics, Strategic Marketing and Research, updated 7/2018. Figures represent 2017 data.

2018 ANNUAL REPORT ARIZONA TRAVEL AND TOURISM INDUSTRY – 2017 DATA

Number of domestic and Amount of direct travel LETTER FROM THE DIRECTOR international overnight visitors spending injected into our 43.9 who experienced Arizona $62.2 state’s economy every single million as a travel destination, million day, up 7.1 percent. up 2.1 percent. The results speak for themselves. Arizona’s tourism industry has once again produced a record- breaking economic impact that resonated across the Grand Canyon State. With the collective efforts of our industry, we have achieved a new high for visitation – 43.9 million overnight visitors – Number of international Amount of earnings generated visitors to Arizona, including by Arizonans employed by and direct visitor spending – $22.7 billion. 5.56 Mexico and Canada. $6.9 tourism jobs, up 6.6 percent. million billion This past fiscal year was just as productive for the Arizona Office of Tourism. As a direct result of our marketing efforts, we generated millions of dollars in incremental travel-related spending, which in turn created jobs across the state and reduced the tax burden for every Arizona citizen. Amount of direct travel Amount of local, state and In addition, our advertising efforts have produced the best return on investment that we have seen spending generated within federal tax revenues generated in several years – $25 in state and local tax revenue for each $1 invested. $22.7 Arizona, up 6.7 percent. $3.37 as a result of direct travel billion billion spending, up 9.0 percent. As you read through our Fiscal Year 2018 Annual Report, you will see more highlights of our successes and how each achievement has helped fulfill our core mission: to strengthen and grow Arizona’s economy through travel and tourism promotion.

There is an undeniable connection between destination marketing and Arizona’s economic Tax revenue generated by the tourism industry lessens the annual tax burden by $1,293 for success. And, the Office of Tourism is committed to producing marketing programs that keep this $1,293 every Arizona household. positive economic cycle moving forward.

I am pleased to share the results of the work we conducted on behalf of the State of Arizona and our tourism industry. The entire AOT team looks forward to working with you in the year ahead Number of industry-related jobs directly generated by travel spending, up 1.6 to achieve even greater results. percent. When combined with indirect employment, direct travel spending affects347,900 jobs. Sincerely, 187,100

Debbie Johnson, Director Where the travel and tourism industry ranks among Arizona’s export-oriented industries. Arizona Office of Tourism #1

Source: Dean Runyan Associates, Tourism Economics, Longwoods International AOT FY18 HIGHLIGHTS

July 2017 August 2017 September 2017 October 2017 October 2017 November 2017

Collaborated with Brand USA Led a delegation of Arizona and Lufthansa Airlines to host tourism partners to Chicago in 12 top travel trade collaboration with the Chicago Partnered with Brand USA to Attended World Travel Market achievers from Germany, Cubs for four days of Launched AOT’s new showcase Arizona during the (WTM) in London, the largest Austria and Switzerland on a 33 statewide tourism consumer, media and {Un} Real travel advertising Arizona Cardinal’s National trade show in the UK. AOT Announced record-breaking MegaFAM. The FAM, led to partners participated in travel trade events at campaign in national Football League game at took its largest delegation visitation and spending data three participants tattooing an AOT’s Arizona Media Matched community Wrigley Field. and key domestic markets: Twickenham Stadium in to WTM to date, with to 457 tourism partners image of a saguaro cactus with Marketplace in Tucson. The contributions with $1 million Chicago, Seattle, San Francisco London, England. Attended 10 tourism partners at the 2017 Governor’s “AZ” onto their ankles. event was held on the opening in advertising funds as Co-hosted with Visit Tucson a and Minneapolis. Out-of- Conference on Tourism. by nearly 74,000 fans, the day of the Travel Classics West in the booth. The group part of AOT’s Rural Marketing media reception in New York home placements included event gave AOT a unique conference. conducted one-on-one Cooperative Program. More City with seven top travel bus wraps, billboards, transit opportunity to directly engage appointments with 27 travel editors affiliated with Travel than 30 statewide tourism stations and other locations with consumers, travel agents Co-hosted Travel Classics writers and freelance Classics. partners participated. throughout the selected cities. and travel journalists. West, which hosted 30 journalists and held editors and 60 freelance 37 trade appointments. writers for meetings and Hosted international journalists seminars. from Canada, China, France, Mexico, Switzerland Hosted nearly 40 and the UK on a central Los Angeles-based Hosted nine trade Arizona media tour. Chinese tour operators representatives from China during in-market sales mission. on a familiarization (FAM) tour Released Season 3 of in partnership with American Arizona Expedition. Airlines and Detours of the West. Led a delegation of statewide Outside Magazine reported tourism partners to the Travel Announced that the 2017 Hosted 10 tour operators Condor that its content received more and Adventure Shows in Supported the new NCAA Men’s Final Four from Mexico City who Airlines air service than 10,000 page views Chicago and Los Angeles. brought an estimated participated in the American between Frankfurt and and users spent an average Co-hosted a reception for The Arizona exhibit won 60,000 visitors to Arizona Airlines Mexico FAM tour. Phoenix by hosting eight of 11.5 minutes on site – more than 120 media and “Best in Show” in both and generated more than travel writers and well above industry standard trade representatives to locations. $324 million in economic three tour operators of two minutes. support Air Canada’s new impact. from Germany. Guided a FAM tour for five non-stop flight from Montreal Canadian travel agents. to Phoenix. AOT FY18 HIGHLIGHTS

December 2017 January 2018 February 2018 March 2018

Collaborated with High Life, the official in-flight magazine of British Airways, to produce a nine-page cover/feature about northern Arizona’s slot Led a travel trade delegation canyons. Each issue reaches to Toronto and Montreal to 3.6 million potential promote Arizona as a leading readers with an estimated travel destination. Held Led the Arizona delegation to Participated in Destination advertising-equivalency valued Launched the new Visit Collaborated with National trainings at three travel ITB Berlin and conducted Capitol Hill, along with 10 Led a media delegation to in excess of $194,000. Geographic Travel to “take agencies, offered a trade more than 80 appoint- tourism-industry partners Germany and Switzerland with Arizona App. The app uses over” the @natgeotravel show for 200 travel agents, ments with travel media, from Arizona. Visit Phoenix, Experience location technology and behavioral-data collection to Instagram account for two provided a networking lunch travel agencies and tourism Scottsdale and Visit Tucson to with 20 tour operators and companies – most of them Launched the 2018 Arizona deliver customized recom- days. The takeover featured promote Condor Airlines’ new hosted a Western-style event based in Germany, Arizona’s Official State Visitor’s Guide mendations to travelers who the posting of 10 consecutive nonstop air service to Arizona. for all destination partners with largest source of overseas and Map. use it. Arizona is the first state Arizona photos taken by The delegation met with 50 50 trade and media in visitors. journalists in three major to apply this technology. National Geographic photographers. Those images attendance. cities – Munich, Hamburg Earned five trophies at The garnered nearly 2.5 million and Zurich – to promote Partnered with REI to promote American Advertising Awards likes and 12,000 positive Arizona destinations and easy Arizona at the company’s ceremony. AOT’s {UN} Real comments. AOT’s Instagram accessibility. flagship store in downtown and Arizona Expedition feed gained nearly 9,500 Seattle. Hosted four free consumer travel advertising new followers. expert-led hiking classes Joined Visit USA Committee campaigns won for branded complemented by an in-store and Brand USA on a five-day content, imagery and Exhibited Arizona at the 2018 activation featuring AOT’s media and trade road show copywriting. Collaborated with the popular Cubs Convention. Staff virtual-reality experiences, in Australia with our tourism Canadian television program and brand ambassadors talked mountain biking in Sedona and partners from Northern Arizona. “The Marilyn Denis Show” to attendees about spring skydiving at the Grand Canyon. AOT shared Arizona informa- to feature an Arizona vacation training trips and tacking on package as the grand prize tion with nearly 900 travel Hosted three Chinese extra days to explore the rest Launched the Arizona social on the show’s 10 Days of professionals and 100 golf-focused tour of the state. media channel on WeChat, Giveaways series. On an media. operators and four Attended Go West Summit one of the most popular average week, “The Marilyn Hosted six French travel Chinese golf-focused where the Arizona team met Collaborated with Cactus messaging apps in China. Denis Show” reaches writers on a group press trip. media outlets to experience with 33 tour operators and League to host nine The platform currently has 3.1 million viewers, and The writers represented the the state’s excellent golf buyers from Europe, Latin in-stadium activations Led an Arizona delegation to 963 million monthly its 10 Days of Giveaways travel sections of many French Hosted seven travel courses and amenities. America and Asia, in addition during spring training providing China and hosted more than active users. series features some of the online and print publications, writers from Mexico, China, to U.S.-based receptive tour the chance to engage with 190 trade and media most-watched episodes each with the potential to Britain, France, Germany, operators. 21 Arizona visitors face-to-face and attendees during events of the season. reach millions of readers. Canada and the U.S. on a tourism partners attended distribute information about and appointments in Shanghai, southern Arizona FAM. the event. things to do around the state. Beijing and Chengdu. AOT FY18 HIGHLIGHTS AOT FY18 RESULTS

April 2018 May 2018 June 2018 ADVERTISING Domestic & International 5 High-Impact Campaigns Promoted National Travel and Tourism Week. AOT AOT advertising directly influenced more than celebrated in several different 564,000 trips and generated ways including with media $21.6 million segments, community events generated in hotel revenue from trackable bookings connected million and even a sweepstakes. in travel revenue. to AOT advertising. $986

Led a large delegation of Led a trade and media Led a delegation of statewide Total campaign Return On Investment (ROI): statewide tourism partners to delegation of statewide Visitors exposed to AOT digital advertising partners to Mexico City and IPW, the travel industry’s partners to Glasgow and booked hotel rooms at an average daily rate of $172 . in state and local tax revenue for each Guadalajara. Met with 74 premier international London to promote travel to Hosted five journalists and $1 invested. trade representatives and marketplace and the largest Arizona. The delegation met $25.83 one photographer from A rate 36 percent higher than the state’s ADR of $128.70. 26 media representatives generator of travel to the U.S. with 59 trade representa- Mexico City on a culinary- Please note: Digital represents approximately 43% of AOT’s domestic campaign. AOT’s FY18 campaign produced the highest ROI in recent years. in Mexico City, along with 69 AOT conducted 144 trade tives and 33 media focused tour of Arizona. trade representatives and appointments and representatives. eight media representa- 20 media appointments. tives in Guadalajara. SOCIAL MEDIA

Participated in the Brand USA and UK MegaFAM. Hosted 17 travel agents from Britain.

Collaborated with Panasonic Facebook Twitter Instagram Attended the Arizona- to host six Chinese (including five international pages) Mexico Commission’s journalists. To document 2018 Summit where the trip, each journalist was Arizona Governor Doug provided with a LUMIX G9 Launched Ducey and Sonora Governor camera. ExpeditionFoodieAZ.com, Claudia Pavlovich signed a 423,538 48,200 107,000 a collaboration with the Arizona Memorandum of Understanding followers followers followers Restaurant Association. The focused on promoting the Arizona-Sonora region as a site offers ideas on how to (5.9% annual increase) (12.3% annual increase) (46.7% annual increase) experience and learn about travel destination. Arizona’s culinary destinations and attractions. AOT FY18 RESULTS

FULFILLMENT MEDIA RELATIONS COMMUNITY OUTREACH

The Arizona Official State Visitor’s Guide (OSVG) and Map Primary international countries include Canada, China, France, Germany, Mexico and the United Kingdom. Presentations and Webinars Local PR Coverage Print Version Digital and iPad App Version 155 1 billion 530,301 journalists hosted article impressions OSVGs distributed Coverage included 254 newspaper articles and 16,750 Delivered 53 presentations and held 25 circulated to reach 141,471,027 readers. downloaded 1,354 8 million Regional Research Webinars to promote tourism’s 475,401 articles generated global readers reached economic impact to regions of the state. maps distributed Total Value: $603,455

Monthly Consumer Visit Arizona App BA High Life Magazine eNewsletter 333,000+ 7,700 AVE = $194,000 subscribers downloads, 68 percent 0123456789 0123456789 Explorations Valley of the Sun CONNECT WITH US CHANGE YOUR VIEW FEBRUARY 2018 retention rate 2018 FEBRUARY PRAISING ARIZONA THE LAST RESORT THE BEST LOCATIONS THE LOST CLASSIC A seaside utopia on the edge of Europe Cinematographers’ scene-stealing landscapes Meet the blini baron bringing back borscht In a remote desert in southwest USA, Antelope Canyon is one of the most surreal and seductive places ROCK STAR on Earth – setting the scene for this season’s boldest looks. Writer and one-time resident Ruffle dress, £370, Solace London at Richard Grant Net-a-Porter (net-a-porter.com). Boots,

AARHUS pays homage to the spectacular landscape. Photography by Kate Martin. Styling by Laury Smith £250, Jayne Pierson (jaynepierson.co.uk)

BUCHAREST ARIZONA NAIROBI MAURITIUS LONDON

MOSCOW Customer Service YORK NEW VEGAS LAS For information regarding AOT’s programs, research, media plans For information regarding how to enjoy Arizona travel experiences, HONG KONG AMMAN KONG HONG and the Arizona Tourism Industry, please visit: please visit: TORONTO SEYCHELLES

The highway to

PHUKET Antelope Canyon MILAN 8,720 BERLIN GLAM ROCK call center and chat inquiries Website Twitter Website Instagram Tourism.Az.gov @AZTourismNews VisitArizona.com @Visit_Arizona TRAVEL TRADE INDUSTRY Facebook Pinterest Primary international countries include Canada, China, France, Germany, Mexico and the United Kingdom. To subscribe to our eNewsletters, please visit: arizonatravel VisitArizona

Familiarization Tours Brand USA MegaFAM Partnerships Tourism Tuesday Visit Arizona Twitter YouTube (Industry) (Consumer) @ArizonaTourism ArizonaTourism 11 FAM tours 3 1 Canada; 3 China; 4 Germany; 2 Mexico; 1 UK Tourism.Az.gov VisitArizona.com Trade and Sales Appointments 81 participants and Destination Training

17 Arizona communities visited 4,533