2016-17 MARKET CONDITIONS Source: Oxford Economics, April 2016

India’s GDP is expected to expand further 2016 2017 Trend Relative value of INR vs. EUR, CAD, USD, AUD in 2016-2017 amid sustained population 120 2008 = 100 GDP 7.4% 7.2% More expensive to visit growth, progress on economic reforms and Canada versus 2008 100 increased productivity, outpacing the economic Consumer spending 7.0% 7.1% EUR growth rate of the other Asian giant, CAD Unemployment 5.5% 5.5% 80 (7.4% vs. 6.2%). While growth is slowing in AUD USD several emerging economies, India’s economy Inflation 5.4% 5.1% 60 2008 2009 2010 2011 2012 2013 2014 2015 2016 and consumer spending will grow in 2016. Unemployment is forecast to remain stable at about 5.5% in the foreseeable future.

OUTBOUND TRAVEL Source: Tourism Economics, April 2016 5.5 M LH trips India Outbound in 2015 Indian long-haul travel expanded at a rapid 200 2008 = 100 Long-haul destination share pace over the past years, outpacing the growth 175 1. United States 19% rate of total outbound travel demand over 2008 38% 2. 9% to 2015. In 2015, LH travel totalled 5.5 million 150 62% 3. 8% trips, accounting for 38% of total outbound 125 trips from India. 4. Hong Kong 5% 100 Short-haul 5. Switzerland 5% Long-haul Amid limited direct air service between India 75 and Canada, travel to Canada rose at a slower Canada 6. 4% pace than total Indian LH travel and other 50 7. China 4% 2008 2009 2010 2011 2012 2013 2014 2015 competing destinations such as the US and 8. 4% European countries. 9. Italy 4% 10. Canada 3%

CANADA’S PERFORMANCE AT-A-GLANCE Source: DC estimates based on Statistics Canada

th India was Canada’s 7 largest source of Significant increases in flight capacity are 2014 2015 2016 overseas visitors in 2015, representing an scheduled for 2016 with direct Air Canada Est. Forecast estimated 3.7% of Canada’s overseas (excl. US) flights to Toronto and . Arrivals (,000s) 173 187 212 tourist export receipts. Overnight Arrivals to Canada Y/Y % + 19.8% + 8.5% +13.0% Approximately 187,000 Indian travellers visited 2008 = 100 Receipts ($M) $264 $315 $363 Canada during 2015, generating $312 million 250,000 187,000 Peak arrivals (2015) in tourist receipts and supporting over Avg. spend $1,531 $1,685 $1,718 2,200 jobs. 2015 has been the highest level 150,000 per trip of visitation ever from India. DC forecasts that 50,000 strong growth will continue through 2016 with a 2013 2014 2015 2016 growth rate of 13%.

TRAVEL TO CANADA: PLEASURE TRIPS 2015 Source: Destination Canada estimates, ITS, Statistics Canada

Trip Purpose (,000s) Pleasure trips from India stood at 10% of total 120 Pleasure trips, 2015 trips to Canada, the lowest of any markets. 32% Total DC 100 IN VFR and business trips accounted for 52% and Overseas 80 52% 10% 32%, respectively. Pleasure trips from India Duration (nights) 12.5 13.4 were one night shorter on average than from 60 Business Avg. spend per trip $1,457 $2,321 DC overseas markets but spending per night 40 Pleasure was 40% less than the DC overseas average. VFR Avg. spend per night $116 $187 20 Other

0 2011 2012 2013 2014 2015

CANADIAN DESTINATIONS VISITED, 2014 Source: International Travel Survey, Statistics Canada, 2014

Home of large South Asian populations, North BC AB MB/SK ON QC Atlantic and BC are the top destinations among Share of visitors3 0% 16% 11% 3% 74% 8% 1% Indian visitors. Avg. annual visits (,000s) 0 28.6 21 5.5 135.4 14.8 1.30

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OVERNIGHT VISITORS BY AGE GROUP, 2014 Source: International Travel Survey, Statistics Canada, 2014

Age Groups Total Leisure Business Millenial visitors (aged 20-34 years) account for the largest share of total visitation from India at <19 4.4% 0.0% 0.7% 29%. The majority of leisure travellers are aged 55 years and over (81%). 20-34 28.7% 12.3% 63.1% 35-44 20.5% 2.7% 28.7% 45-54 15.4% 3.4% 7.2% 55-64 13.2% 11.6% 0.2% >65 16.8% 69.9% 0.0% Not Stated 1.0% 0.0% 0.0% Total 100.0% 100.0% 100.0%

AIR SERVICE TO CANADA Source: Diio Mi, January 2015

Seat capacity between India and Canada Traveller routing to Canada, 2015 2016 seats (,000s) Y/Y # Y/Y % will rise 53% in 2016 amid the new 4x weekly Source: International Travel Survey, Statistics Canada Total 177 + 61 + 53.2% Air Canada Delhi-Toronto flight launched in ON 177 + 61 + 53.2% November 2015. AC will increase to daily 4% Direct from Overseas service in Nov 2016. AC last operated India 19% service in 2007. AC’s new nonstop service will Air via US facilitate easier travel from India to Canada. 15% 62% Land (from US) Seat capacity with rise slightly (+1.8%) on the daily Jet Airways Delhi-Toronto route (via Sea Amsterdam) in 2016.

In 2015, about 62% of Indian visitors entered Canada direct from overseas by air and the rest entered via the US, including 15% by air and 19% by land.

TRAVEL PLANNING

Role of travel agent Role of travel agent is stagnant for trips to Canada: in our 2015 study, about 69% of recent visitors to Canada consulted with a travel agent for information or to book versus 65% in our 2013 study Booking channel for flights Travel agent ≈ 50%, Direct with airline ≈ 30%, Retailer online ≈ 20%

Planning timeframe 30% at least 4 months prior, 70% within 3 months of travelling (Source: GTW, 2013)

Booking timeframe 19% at least 4 months prior, 81% within 3 months of travelling (Source: Intervistas, 2015)

TRAVEL TRADE

9 Key Accounts mostly located in Mumbai, Western/ Rockies – Banff, Jasper, Vancouver, New Delhi and Kolkata Whistler, train, soft adventure, shopping and food Eastern Tours – Niagara Falls, Toronto shopping & nightlife, dining, Quebec culinary Cool weather experiences — for all over and city festivals Canada

DEFINITIONS

1 Long-haul (LH) travel Travel beyond south Asia, southeast Asia and the Middle East

2 Other Leisure trip to Canada A trip where the main reason was something other than holiday, vacation, visiting friends and family or business. Common reasons include educational study, personal motives (e.g. wedding, medical), in transit and shopping.

3 Share of visitors The share of visitors by /region will sum to more than 100% because a visitor may visit more than one province or region.

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