26% Estimated GDP per capita (2012) $41,231 USD. 2% GDP growth (2011) 3.4% 10% GDP growth (2012) 0.9% 19% Forecasted GDP growth (2013) 0.

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1 Germany Overview Germany was British Columbia s (BC) sixth largest international market in terms of direct customs entries in 2013; up one spot from Germany was Canada s fifth largest market in 2013; down one spot from Germany remained the second largest European market for BC and third largest for Canada in In 2013, Germany accounted for 19% of BC s European entries and 14% of Canada s European market share. These proportions remained relatively stable compared to The market at a glance JUNE 2014 Top countries to BC (2013) USA overnight 1 South Korea 7 China 2 Hong Kong 8 United Kingdom 3 Mexico 9 Australia 4 India 10 Japan 5 Philippines 11 Germany 6 Taiwan 12 Source: Statistics Canada Outbound trips from Germany (2012) 82.7 million Population (2012) 81.2 million Direct customs entries to BC (2013) 82,095 Unemployment rate (2012) 5.5% BC s share of Canada s German custom entries (2013) Germany as a share of BC s total international customs entries (2013) Europe as a share of BC s total international customs entries (2013) Germany as a share of BC s European customs entries (2013) German overseas travellers Over 82 million outbound trips were taken by German travellers in 2012; down from 84 million trips in In 2013, over 300,000 Germans travelled to Canada; just over one-quarter entered directly through BC. The number of German entries to BC remained relatively flat between 2004 and 2013; however, German entries to Canada decreased 4%. In 2013, annual inbound air capacity into Vancouver International Airport (YVR) from Germany was 1% of total capacity to YVR. Total inbound air capacity from Germany increased 19% between 2009 and 2013, with air capacity at 165,332 in This reflects non-stop, one direction flights for all passengers (travellers/non-travellers) into YVR. Sources: EuroStat, Statistics Canada, Vancouver International Airport 26% Estimated GDP per capita (2012) $41,231 USD 2% GDP growth (2011) 3.4% GDP growth (2012) 0.9% 19% Forecasted GDP growth (2013) 0.5% 600, , ,000 0 Sources: OECD, Statistics Canada German overnight customs entries ( ) Rest of Canada BC

2 The German traveller in Canada 1 Visitor characteristics In 2012, there were more male visitors to Canada than female visitors. These proportions remain unchanged since 2009 (54% male to 46% female). The average party size for German visitors increased slightly since 2009 (from 2.0 to 2.4). In 2012, nearly a quarter of German visitors traveled alone and almost half traveled in a party of two. Travel in parties of three or more almost doubled since 2009 (from 16% to in 2012). In 2012, almost one-third of German visitors to Canada were young adults (20 to 34 years). Within this group, three-in-four fell into the 25 to 34 age bracket; roughly an 8% increase from The proportion of travellers aged 65 plus declined while the proportion of travellers aged 45 to 54 increased 7% between 2009 and Trip characteristics In 2012, German travellers to Canada (who also visited BC) spent on average 20 nights in Canada and 15 nights in BC. The average trip length decreased compared to 2009 (24 nights in Canada and 18 nights in BC). In general, average trip length for German travellers decreased since However, nearly of German travellers spent three to eight weeks in Canada. Within the 21 to 59 night category, 8 of people stayed between 21 and 30 nights (including educational stays). In 2012, almost 7 of German visitors to Canada arrived between May and August with three-quarters arriving in July and August. Summer travel rates in 2014 could be affected by the World Cup, hosted by Brazil. 4 2 In Canada 4 2 In BC Travel party size (2012) 3 or more 2 people 46% 1 person 24% Visitors by age group < Average trip length (nights) Visitors by trip length in nights % 2 15% 5% Data sources for German travellers in Canada The International Travel Survey (ITS) is an ongoing survey conducted by Statistics Canada in partnership with the Canadian Tourism Commission and some provinces, including BC. The survey contains questions designed to collect data on the characteristics of travellers. The ITS provides statistics on the volume and demographics of international travellers and on characteristics of their trips such as activities, expenditures, places visited, accommodations and length of stay. The data in this section is based on the 2012 ITS results and on those who entered Canada from Germany and who spent at least one night in BC. Comparisons to the 2009 ITS results are discussed where available. For more information, please visit Visitors to Canada by month (2012) Jan Mar May Jul Sep Nov 1 Some totals may not sum to 10 due to rounding.

3 The German traveller in Canada Activities and transportation About 7 percent of German travellers to Canada visited for leisure (holiday/vacation) purposes. Nearly one-in-five indicated that they were visiting friends or relatives (VFR), an increase from Travel for business and other purposes decreased slightly in In 2012, sightseeing (87%) and shopping (79%) and were the most popular activities for German travellers. However, interest in these activities has decreased since In general, participation in a majority of trip activities saw a decrease between 2009 and Visiting a museum or art gallery decreased from 48% in 2009 to 31% in Attending a bar or night club, boating, golfing and skiing or snowboarding were the only trip activities that saw an increase in participation rates in % 5 75% 10 14% 19% VFR Business Primary trip purpose 7 7 7% 6% Other activities while in Canada 9% 5% Holiday/Vacation Other Trip activities* National or provincial park 78% 75% Sport or outdoor activity 56% 42% Historic sites 52% 41% Visit friends or relatives 43% 4 Zoo, aquarium or gardens 37% 34% Museum or art gallery 48% 31% Bar or night club 25% 27% Boating 17% 26% Festivals or fairs 15% 12% *Other than shopping and sightseeing In 2012, over 5 of German travellers used rented automobiles, and 49% half used metros, subways or taxis. These proportions were roughly seven percentage points higher than in Fewer German travellers used buses, boats, planes, trains, private boats and private automobiles as transportation within Canada compared to Transportation while in Canada Transport method Rented automobile 51% 58% Metro, subway, taxi 43% 49% *Boat 37% 31% Private automobile 32% 25% Plane 24% 19% Bus 28% 19% Train 4% 2% Private boat 3% 1% Private plane *Includes cruise, ferries, etc. Spending and perceived value On average, German travellers spent $3,451 per party during their visit to Canada in 2012, up 3% from In 2012, travel parties spent $175 a night, up 25% from In 2009 and 2012, about 8 of travel expenses were directed to food, lodging and transport. Germans tend to spend more on accommodation and food and beverage than other overseas visitors to Canada. Expenditures by travel party Expenditure type Accommodation 36% 4 Transportation 19% 17% Food and beverage 23% 24% Recreation/entertainment 9% Other costs 13% Total spend by party $3,340 $3,451 Party spend by night $140 $175 Overall, German visitors to Canada were satisfied with the building blocks of travel transportation, accommodation, local hospitality and the variety of activities available during their trip. In 2012, over 8 of visitors rated these aspects as good with the hospitality of local people receiving the highest rating (93% were satisfied). German travellers have been less satisfied with their trip to Canada in terms of value for money than in the past. In 2012, while one-quarter indicated their trip was good value for their money, another one-quarter felt the value was poor. Since 2009, poor ratings increased significantly and good ratings decreased nearly. According to the Canadian Tourism Commission (CTC) in 2012, the German economy slowed and the Euro continued to decline against major global currencies which could account for German travellers being less satisfied with the value of their money while travelling in Canada. Trip experiences in Canada Satisfaction with Transportation services Good 76% 83% Average 2 16% Poor 4% 1% Accommodation services Good 82% 83% Average 17% 17% Poor 1% Hospitality of local people Good 96% 93% Average 4% 7% Poor Value for your money Good 54% 25% Average 42% 5 Poor 4% 25% Variety of things to see and do Good 84% 89% Average 14% 11% Poor 2%

4 Germany s economic profile Germany s economy has a considerable global presence. Two decades after the costly reintegration of East Germany the country has re-established its position as an economic force: 1st in Europe and 5th in the world (in terms of purchasing power parity). Germany plays a key role in the stability of Europe; the country has been Europe s anchor during the recent European sovereign debt crisis. Despite further setbacks to emerging markets in early 2014 and the crisis in Ukraine, the European recovery still looks intact. The German economy is expected to experience modest growth of 1.7% in The main impetus behind the Eurozone currency s recovery in 2014 will also be Germany, which makes up nearly of the currency club s collective output, and which is predicted to grow by 1.8% and continue to strengthen upwards into Additional recent bright spots seen for Germany in early 2014 include improved consumer sentiment, a drop in the unemployment rate and signs of weakening inflation pressures. Competition for Canada and BC The Canadian Tourism Commission (CTC) defines Canada s competitive set for the long-haul German leisure travel market as the United States (US), Australia, New Zealand, South Africa, Brazil and China. Economic uncertainty, weaker consumer confidence and the decline of the Euro are some of the factors responsible for the shift in long-haul travel patterns among German travellers over the past number of years. Despite these uncertainties, Germany is considered the world s largest tourism market, with a majority of travel concentrated in Europe. The US captures the bulk of the long-haul pleasure market with awareness growing significantly in the past year. Almost 2 of long-haul travellers report a pleasure trip to Canada but the vast majority of those trips were more than three years ago. However, Germans appear to be optimistic about their future travel. The intention of German travellers to take long-haul trips is at its highest rate in the past six years. Canada continues to remain in third position on aided and unaided destination awareness, behind the US and Australia. However, knowledge of vacation opportunities in South Africa, Brazil and China are continuing to grow. Within Canada, Ontario and BC are the destinations of choice. However, interest in visiting Vancouver, Niagara Falls and Toronto all experienced substantial declines over the past year. The German economy has remained strong because of its skilled workforce and the strength of its industrial manufacturing and exports. However, like its Western European neighbors, Germany faces significant demographic challenges to sustained long-term growth. Low fertility rates and declining net immigration are increasing pressure on the country's social welfare system, necessitating structural reforms. Sources: Bank of Canada, Bloomberg, CIA World Factbook, Moody's Analytics, The Economist The interests of German travellers appear to be changing. All but one trip experience included in the Canadian Tourism Commission s Global Tourism Watch had a decreased level of interest in the most recent survey, which may suggest that many are seeking a different type of trip. Seeing beautiful scenery, experiencing a country s unique character, historic, local and aboriginal culture and participation in summer activities are top experiences sought by German travellers. Winter activities, ski vacations and other water-based excursions have not gained traction in the German market, although these products are seen as some of Canada s top strengths. While Canadian culture and local products are not perceived strongly among German travellers, Canada does share a competitive space with the US in summer activities. While Canada ranks high in beautiful scenery, national parks and its outdoorsy image, the US continues to have the most diverse set of strengths in city activities, local and cultural products, entertainment experiences and vibrant cities close to nature. As far as strong competitive advantage on product, Australia has a defined image based on aboriginal culture while South Africa has a global reputation for wildlife viewing, all prevalent interests among German travellers. Source: Canadian Tourism Commission

5 Emerging trends in travel Germans have a reputation as being big travellers. Despite recent economic challenges in Germany, Europe and globally, travel and tourism have stayed strong for Germans. Most Germans remain rather optimistic and annual holidays are one of the last areas where significant cuts are made during more difficult times. Nature and culture are the top vacation interests of German travellers. Key considerations when choosing any holiday destination are: value for money, world-class beauty and natural environments, safety and security, great swimming beaches and good food and wine. According to Canadian Tourism Commission research, in the minds of German travellers, Canada rates first in two brand perception categories Inspired geography and Offering an authentic experience. Canada is weaker on beaches and food and wine. They have a relatively short trip-planning and booking cycle: 57% travellers plan their trip three months or less before travel and 63% book in the same time frame. German National Holidays New Year's Day January 1 January 1 Good Friday March 29 April 18 Easter Monday April 1 April 21 May Day (Labour Day) May 1 May 1 Ascension Day May 9 May 29 Whit Monday May 20 June 9 Day of German Unity October 3 October 3 Christmas Day December 25 December 25 Boxing Day December 26 December 26 For more information, please contact: Destination British Columbia Research, Planning & Evaluation tourismresearch@destinationbc.ca Website: Source: timeanddate.com (c) 2014 Destination BC Corp. All rights reserved. DESTINATION BRITISH COLUMBIA is an Official Mark of Destination BC Corp. Germans are discerning and knowledgeable travel consumers. They are careful planners, seeking detailed information from a range of sources prior to departure. Due to extensive competition as well as the pricesensitive nature of German consumers (especially in comparison with other Western European countries), prices for most tourism and travel products and services are under pressure to be cost-effective. There are two major distribution channels for travel product within the German travel trade: wholesalers who sell their products through travel agencies (mainly chains, franchise systems, co-operations and independents) and direct sellers who use their own retail offices and partner agencies as their distribution channel. Consolidation in the retail sector is making it difficult for travel agencies to remain independent, as more medium-sized travel agencies are joining retail agency alliances. This has been taking place in Germany for many years and is expected to continue. Specialty segments include operators targeting youth, study and education trips and luxury travel. The internet is a well-established element of everyday life in Germany. Travel bookings through traditional retail agencies remain strong for long-haul travellers over 40 years of age; however, there has been an increase in longhaul online bookings for airfares and accommodations by travellers under 30 years of age, particularly those travelling for extended periods of time. When comparing offline and online value sales across the board in all major areas like car rental, transportation, accommodation and travel retail, online sales continue to grow strongly (albeit not as fast as pre-2012), whereas offline sales are declining. Germans favour online sources such as general internet searches and travel advice websites and forums to research their overseas travel. Talking to family and friends who have previously visited is also important. Key Online Travel Agencies (OTAs) in Germany include Opodo, Expedia, Lastminute, Weg.de, ebookers and Itur. A large proportion (7) of German travellers participate in social networks like Facebook, Twitter and YouTube. These sites have become increasingly valuable for tourism and travel promotion, and the same is true for mobile booking services, which recorded strong growth rates, albeit from very low sales levels. Further significant growth in these areas is expected looking forward. Sources: Euromonitor International, Canadian Tourism Commission, Tourism Australia