FY2016 Objectives, Summary Marketing Plan, & Budget

FY2016 Objectives, Summary Marketing Plan, & Budget As of August 1, 2015

2 ABOUT BRAND USA ABOUT THIS PLAN As required by U.S. Code 2131, the Travel Promotion Act, and as amended the Travel Promotion, Enhancement, and Modernization Act of 2014, Brand USA submits this plan to the Secretary of Commerce on August 1, 2015. Included within these pages are: The annual objectives Brand USA has established for fiscal year 2016 (FY2016) subject to approval by the Secretary of Commerce (after consultation with the Secretary of Homeland Security and the Secretary of State). The FY2016 summary marketing plan in support of the achievement of these objectives. The FY2016 budget, including an explanation of any expenditure provided for by the budget in excess of $500,000 for the fiscal year. This plan is also posted on our corporate website, TheBrandUSA.com. On October 1, 2015, Brand USA will publish its full FY2016 business plan, which will include more detail about its marketing platforms, programs, and initiatives to support the objectives, goals, and strategies included in this summary plan.

TABLE OF CONTENTS About Brand USA...4 Statement of Purpose, Mission, and Vision... 6 Our Role in the Travel Industry... 8 Highlights of Activities & Successes... 9 Situation Analysis... 11 Global Perspective...12 U.S. Perspective...15 The Path to 100 Million International Arrivals...19 Summary Marketing Plan...22 FY2016 Objectives, Strategies, and Goals...23 Ongoing Promotional Activities...28 FY2016 Market Selection Model...35 FY2016 Target Markets and Market Prioritization...36 FY2016 USA Marketing Campaign...37 FY2016 Market Summaries...38 FY2016 Trade Outreach... 50 FY2016 Co-op Marketing Programs...55 FY2016 Affinity programs... 64 FY2016 Brand USA Research & Analytics...65 3 FY2016 OBJECTIVES, SUMMARY MARKETING PLAN, & BUDGET Budget... 70 The Brand USA Team...73 Senior Leadership...74 International Representation...75 Board of Directors...78 Connect With Us... 80

About Brand USA

Brand USA is the destination marketing organization for the United States with the mission of increasing incremental international visitation, spend and market share to fuel the nation s economy and enhance the image of the USA worldwide. Established by the Travel Promotion Act as a the nation's first public-private partnership to spearhead a globally coordinated marketing effort to promote the United States as a premier travel destination and communicate U.S. travel policies, Brand USA began operations in May 2011. As one of the best levers for driving economic growth, international travel to the United States currently supports 1.8 million American jobs (directly and indirectly) and benefits virtually every sector of the U.S. economy. Brand USA works in close partnership with more than 500 partner organizations to invite the world to explore the exceptional, diverse, and virtually limitless travel experiences and destinations available in the United States of America. In May 2012, Brand USA launched its first campaign, which invited the world to Discover This Land, Like Never Before. The inaugural campaign premiered in Canada, Japan, and the United Kingdom. Since then, Brand USA has expanded its marketing effort to reach international travelers in more than 30 markets. Now entering its fifth full year of operations, Brand USA's economic impact has been significant. In fact, according to studies by Oxford Economics, in the past two years alone, Brand USA s marketing initiatives are responsible for welcoming more than 2 million incremental visitors to the United States and generating $6.5 billion in additional visitor spending, which has fueled the U.S. economy by generating nearly $15 billion in business sales, $7.2 billion in GDP, more than $4 billion in personal income, and $1.9 billion in federal, local and state tax revenues. In addition, the program has supported an average of 50,000 incremental U.S. jobs per year. 5 FY2016 OBJECTIVES, SUMMARY MARKETING PLAN, & BUDGET Brand USA s operations are supported by a combination of non-federal contributions from destinations, travel brands and private-sector organizations plus matching funds collected by the U.S. government from international visitors who visit the United States under the Visa Waiver Program. For industry or partner information about Brand USA, please visit www.thebrandusa.com. For information about exceptional and unexpected travel experiences in the United States, please visit Brand USA s consumer website at www.discoveramerica.com.

6 ABOUT BRAND USA STATEMENT OF PURPOSE, MISSION, AND VISION As Brand USA began fiscal year 2015, we revisited and revised our mission and vision statements by developing a broader, more encompassing statement that better reflects our purpose as the destination marketing organization for the United States. Five strategic principles are at the core of our new statement: Create Innovative Marketing Add & Create Value Market the Welcome Drive Results Build & Maintain Trust These foundational elements serve as constant points of reference on how we will build upon the effectiveness of our overall destination marketing strategies. Inclusive of our mission and vision statements, our Statement of Purpose is an enduring declaration of Brand USA s reason for being and how we will accomplish our ultimate objectives and goals. STATEMENT OF PURPOSE: FOUNDATIONAL ELEMENTS DRIVE RESULTS Maximize and optimize ROI: right messages, right channels, right markets, right times and right investment levels CREATIVE INNOVATIVE MARKETING Promote the entirety of the USA to, through and beyond the gateways ADD & CREATE VALUE Pioneer cooperative marketing platforms and programs that leverage and grow the USA brand in ways our partners would be challenged or unable to do on their own MISSION Increase incremental international visitation, spend and market share to fuel our nation s economy and enhance the image of the USA worldwide BUILD & MAINTAIN TRUST Inclusive, proactive and transparent outreach; integrity with key stakeholders worldwide through words, actions and results MARKET THE WELCOME Inspire, inform, welcome and thank travelers while accurately communicating vital and compelling information about visa and entry policies

STATEMENT OF PURPOSE Our vision is to be the best in class national destination marketing organization - earning the USA the largest share of the global travel market and significantly contributing to job creation, GDP, export growth and tax revenues. Our mission is to increase incremental international visitation, spend and market share to fuel our nation s economy and enhance the image of the USA worldwide. We will realize our vision and accomplish our mission by staying true to these foundational elements: Create Innovative Marketing Promote the entirety of the USA with innovative marketing that supports all 50 states, the District of Columbia and five territories to, through, and beyond the gateways. Market the Welcome Inspire, welcome and thank travelers while accurately communicating vital and compelling information about visa and entry policies. Build & Maintain Trust Build and maintain trusted relationships with stakeholders worldwide through inclusive, proactive and transparent outreach with a commitment to compliance and integrity through words, actions and results. Add & Create Value Add and create value by pioneering cooperative marketing platforms and programs that leverage and grow the USA brand in ways our partners would be challenged or unable to do on their own. 7 FY2016 OBJECTIVES, SUMMARY MARKETING PLAN, & BUDGET Drive Results Maximize and optimize the return on investment of Brand USA s resources by deploying the right messages, through the right channels, in the right markets, at the right times and at the right levels of investment. While specific objectives, goals, strategies and measures will be developed on an annual basis to successfully realize our purpose, these elements establish the foundation for all we do. As we track our progress in pursuit of this purpose, the true measure of our success will be the degree by which we create sustainable funding sources and meet our responsibility to drive significant, year-over-year increases in incremental international visitation, spend and market share and our country benefits in economic prosperity and growth as a result of our efforts. We will build upon the effectiveness of our overall destination marketing strategies by leveraging the strength of Federal resources, including embassies and consulates, worldwide.

8 ABOUT BRAND USA OUR ROLE IN THE TRAVEL INDUSTRY Brand USA plays a unique role as the nation s first cooperative destination marketing organization. We focus our efforts on delivering programs and platforms that increase awareness and enhance the image of the United States among worldwide travelers in order to influence intent to travel to the United States and, most importantly, visitation and spend. In addition to promoting the United States as a premier travel destination through consumer and travel trade marketing, advertising, events and promotions, we work with the Federal government to communicate U.S. entry and security processes that will help make the journey to and into the United States easier and more welcoming. The collective efforts of Brand USA, the U.S. Department of Commerce led Travel and Tourism Advisory Board, and the U.S. Travel Association will increase the desire and ability for international travelers to come to the United States. And as we welcome millions of new international visitors, we make our country stronger creating jobs essential to the economy and providing opportunities for millions of U.S. citizens. LEADERSHIP ROLES IN THE TRAVEL INDUSTRY TO INCREASE INBOUND TRAVEL TO THE UNITED STATES PROMOTE Lead the nation s global marketing effort to increase inbound travel to the United States Enhance awareness and the image of the USA as a diverse, exciting, and premier travel destination Create programs and platforms that add and create value for partners and support the National Travel and Tourism Strategy Work with the Federal agencies to develop programs to communicate U.S. entry and security processes and create a welcoming experience for international tourists TRAVEL & TOURISM INDUSTRY ADVISE Travel and Tourism Advisory Board Advise and provide policy recommendations to the Secretary of Commerce on issues affecting the U.S. travel industry ADVOCATE As the leading voice of the U.S. travel industry, increase travel to and within the United States Advocate for and advance pro-travel policies and remove travel barriers Provide authoritative research and networking opportunities Communicate the positive widespread impact of travel to policy makers and the media Leverage the collective strength of everyone who benefits from travel to grow their business beyond what they can do individually

HIGHLIGHTS OF ACTIVITIES & SUCCESSES Brand USA has made continued progress toward its mission of increasing international visitation to the United States since inception. Highlights include: Visitation, Spend, Market Share From 2013 through 2014, Brand USA s marketing initiatives have helped welcome more than 2 million incremental visitors to the United States, which generated $6.5 billion in additional visitor spending. These additional visitors and the money they spend during their travels have fueled our economy by generating nearly $15 billion in business sales, $7.2 billion in GDP, more than $4 billion in personal income, and $1.9 billion in federal, local and state tax revenues. And the program has supported an average of 50,000 incremental U.S. jobs per year. An increase in the United States share of total international travel from 6.4% in 2013 to 6.6% in 2014 (Source: The World Tourism Organization/UNWTO). OVER THE PAST TWO YEARS, BRAND USA S MARKETING EFFORTS HAVE GENERATED: 2 million incremental visitors $ 6.5 billion in incremental spending 9 FY2016 OBJECTIVES, SUMMARY MARKETING PLAN, & BUDGET 50,000 incremental jobs supported each year federal, state, & local taxes close to $ 2 billion almost $ 15 billion in total economic impact more than 500 94% partners partner program retention rate Sources: ROI data provided by Oxford Economics. Partner and partner program retention data provided by Brand USA internal reporting.

10 ABOUT BRAND USA Marketing Effectiveness A 3.8% increase in the number of net promoters of the USA across Brand USA s primary target markets (Australia, Brazil, Canada, China, France, Germany, India, Japan, South Korea, Mexico, and the United Kingdom) from 45.8% in 2013 to 47.6% in 2014. Net promoters are defined as those who selected I would bring [the USA] up to recommend as a destination in a quantitative survey conducted by PhoCusWright. A 6% increase in the percentage of campaign recognizers who indicated they will definitely or probably visit the United States in the next six to 12 months from 60% in 2013 to 64% in 2014. Continued strong and positive social sentiment of 89% across all of Brand USA s digital channels based on informal monitoring. Visible was selected in the RFP process for an advanced social monitoring tool and is currently being configured. Partnerships and Contributions Growth Cash contributions totaling $34 million, comprising 31% of total contributions. In-kind contributions totaling $75 million, comprising 69% of total contributions. A five-fold increase in our partnership network from 89 partners in FY2012 to 339 in 2013 to 475 through 2014 and more than 500 to date. Quadrupled the number of partner programs from 25 in FY2012 (the year prior to this arrival) to more than 100 programs with 200 opportunities. A 94% partner program retention rate as measured by the number of partners participating in Brand USA co-op programs in consecutive years. Marketing Reach Expanded the USA consumer campaign from three markets in 2012 to 14 key markets that generate more than 80% of all international visitation to the United States. Tripled international representation from four offices (covering seven markets) in 2012 to 12 offices covering 20 markets, including Australia, Austria, Brazil, Canada, China, Costa Rica, Germany, Guatemala, Hong Kong, India, Ireland, Japan, Mexico, Nicaragua, New Zealand, Panama, South Korea, Switzerland, Taiwan, and the United Kingdom. Tripled Brand USA s international marketing presence (defined as markets with at least two Brand USA marketing initiatives in country) from 10 in 2012 to more than 30 today. Increased the number of markets where Brand USA is fully deployed (with its USA consumer marketing campaign, co-op marketing initiatives, and trade outreach) from two markets in FY2012 (Japan and the United Kingdom) to 11 markets through 2014.

Situation Analysis

12 SITUATION ANALYSIS GLOBAL PERSPECTIVE SHORT-TERM CONVERGENCE OF ECONOMIC GROWTH Since the dawn of this century, emerging markets have charged forward, elevating millions of people into middle-class lifestyles and transforming global consumption patterns. Despite media headlines warning of China s slowdown and Brazil s general economic gridlock over the next decade, emerging markets will continue to grow faster than advanced economies. In the near term, however, normalization will dampen overheated markets such as China and boost recession-plagued European markets like Spain that are finally regaining positive momentum. Predictions for total global GDP growth remain relatively flat for 2015. The International Monetary Fund (IMF) predicts global GDP to reach 3.5% this year (see Chart 1), changing little from 2013 (3.4%) and 2014 (3.4%). The consistency is only on the surface, however, as many individual countries are shifting significantly. Advanced economies accelerated from 1.4% in 2013 to 1.8% in 2014 and are projected to reach 2.4% in 2015 while emerging markets are decelerating from 5% to 4.6% to 4.3%. This convergence is somewhat unusual, as trends have historically moved in a similar direction year to year. Chart 1

13 One driver for the positive trend among advanced economies is the long-awaited recovery of markets like Italy and Spain, after a double dip recession. Europe's GDP growth increased from 0.1% in 2013 to 1.4% in 2014 and is expected to reach 1.8% in 2015. Because the stronger growth for advanced economies to some extent reflects recovery rather than a systemic long term trajectory, the IMF expects the growth to flatten in 2016 and then slow gently thereafter. The current dip in emerging market growth is also expected to be short-lived. Brazil and China are both major contributors to the trend, though they have completely different scenarios. Brazil s slowdown is significant enough to put the country in recession in 2015 (-1%) as a problematic combination of high inflation and high interest rates foils potential government stimulus tactics. In contrast, China s slowdown is far from recessionary at an expected 6.8% in 2015. The effects of unrealistically optimistic speculation (e.g. real estate supply surplus, manufacturing overcapacity) are key drivers of the trend, while stock market volatility has undoubtedly shaken investor confidence. China is expected to suffer through a challenging corrective period as supply and demand are brought into balance. Even through these challenges, however, China is expected to maintain GDP growth of 6% or above over the next seven years. CURRENCY HEADWINDS One of the key challenges facing all U.S. exports in 2015 is the remarkable strength of the dollar against other currencies. In the fourth quarter of 2014, the dollar s value began to rise, reaching a peak against many currencies in March (see Chart 2). Among the top visitor origin markets, Brazil is the most severely impacted. For much of 2015, a U.S. vacation has been essentially 40-50% more expensive to Brazilians compared to 2013. The Canadian dollar, the Mexican peso and the Euro have been approximately 20% weaker against the dollar. Due to advanced bookings, the impact of currency exchange in the first half of 2015 will be limited. Many of the travelers arriving in March, for example, would have booked months before the dollar jumped in value. Exchange rates will therefore have a stronger impact on U.S. arrivals in the latter half of the year. FY2016 OBJECTIVES, SUMMARY MARKETING PLAN, & BUDGET Chart 2

14 SITUATION ANALYSIS Value of U.S. Dollars (Indexed against 2013 average) The United States receives the largest volume of global tourism spending according to the United Nations World Tourism Organization (UNWTO). In 2014, overseas visitors to the USA spent $177 billion, up 2.5% from 2013. At less than half the volume, Spain is the next largest destination at $65 billion in 2014. China s tourism receipts jumped 10% to $57 billion in 2014, bringing it from fifth place in 2013 to replace France as the number three destination. China overtook the United States as the world s largest origin market of tourism spending in 2012, and its lead continues to grow. Chinese travelers spent $165 billion in 2014, up 27% from the prior year. Over the next decade, Asian markets will lead growth both as a source and a destination for international travelers. The UNWTO projects that Asia Pacific s share of global arrivals will increase from 22% in 2010 to 30% in 2030. In turn, mature destinations will recede share, as their growth rate (2.2%) will be half that of emerging markets (4.4%). In order to reach the National Travel and Tourism strategic goal of reaching 100 million visitors by 2021, the United States must outperform its competitive set of mature tourism markets. THE UNITED STATES CONTINUES TO REGAIN LOST MARKET SHARE According to Oxford Economics, Brand USA s marketing efforts have generated over 2 million incremental visitors to the United States over the past two years (2013-2014). While the standalone results clearly demonstrate the success of Brand USA initiatives, global market share analysis adds additional perspective on our impact. The collective efforts of Brand USA and the travel and tourism industry have propelled the United States ahead of the global average since 2010. (see Chart 3)

15 Chart 3 Long Haul Arrivals (millions) 300 250 200 150 100 50 0 GLOBAL LONG HAUL ARRIVALS AND U.S. MARKET SHARE 2000 2001 2002 2003 2004 2005 Note: Data was last updated 7/15/15 and is continually revised as better global information is made available. 2006 2007 2008 2009 2010 2011 2012 2013 2014 0.18 0.16 0.14 0.12 0.10 0.08 0.06 0.04 0.02 Source: Oxford Economics, NTTO FY2016 OBJECTIVES, SUMMARY MARKETING PLAN, & BUDGET Nevertheless, the United States still has a long way to go to regain the market share that was conceded during The Lost Decade, a period after 9/11 during which the USA lost 30% of its global long haul market share. Absent the industry s specialized, coordinated efforts to attract additional international visitors, the United States would have continued ceding more share to other tourism markets around the world. For each measure of progress, we are not only counteracting, but outpacing a current that flows against us. THE U.S. PERSPECTIVE U.S. ARRIVALS: OUTPERFORMING EXPECTATIONS The United States welcomed a record 74.7 million international visitors in 2014, reflecting a 6.8% increase from 2013 (see Chart 4). While growth was slightly overstated due to a change in methodology used by the Department of Commerce's National Travel and Tourism Office (NTTO), U.S. arrivals outperformed previous expectations as growth was expected to decline rather than accelerate in 2015. Accurate year-over-year trending may be somewhat challenged in the short-term as the Department of Commerce and Department of Homeland Security consider any methodology enhancements to improve the accuracy and timeliness of arrivals reporting.

16 SITUATION ANALYSIS In the years ahead, NTTO forecasts that arrivals will maintain an average growth rate of 4.3%. Arrivals growth is expected to fall below that average in 2015, however, due to the comparative strength of the U.S. dollar. Swift recovery of 2015 s lost momentum is essential in order to reach our long-term target of reaching 100 million visitors by 2021. Brand USA has continued its marketing efforts in 2015 with this in mind, recognizing that the return may not actualize until after the short-term currency disadvantages are resolved. This strategy may impact the ROI of Brand USA's 2015 activities, but lays the foundation for bolstering growth in 2016 and beyond. Chart 4 U.S. INTERNATIONAL ARRIVALS & GROWTH US Arrivals (millions) 80 70 60 50 40 30 20 10 15% 10% 5% 0% -5% 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014-10% Source: NTTO

17 TOP 10 MARKETS Brand USA is focused on markets that supply international travelers to the United States. Throughout FY2016, a strong combination of consumer marketing and trade outreach will be active in each of the top 10 markets that have the potential to generate the majority of international inbound travel and spend to the United States. 2014 INTERNATIONAL VISITATION TO THE USA FY2016 OBJECTIVES, SUMMARY MARKETING PLAN, & BUDGET Source: NTTO

18 SITUATION ANALYSIS TOP 10 MARKETS An important part of the equation when considering the markets where we promote travel to the United States is spend. In addition to total spend, we also consider how various markets rank in terms of spend per traveler. 2014 INTERNATIONAL SPENDING IN THE USA Source: NTTO

19 THE PATH TO 100 MILLION INTERNATIONAL ARRIVALS After five years of coordinated effort between Brand USA, the Federal government and the travel industry, the United States is well positioned to reach the National Travel and Tourism Strategy s goal of welcoming 100 million international visitors to the USA by 2021. To achieve this goal, arrivals growth must maintain an average of 4.24% each year from 2015 to 2021. Current forecasts show the United States reaching the target by a narrow margin. It will be challenging to maintain consistently strong growth over the next seven years. Brand USA has developed a Path to 100 Million International Arrivals as a method to represent specific annual targets for top origin markets. It is based mainly on origin market trends the departures leaving a particular market and U.S. market share of those departures. Utilizing this information allows us to identify opportunities in markets where we have low market share. Unlike the forecast released by NTTO, this information is not intended as a prediction of actual arrivals. NORTH AMERICA OUTLOOK Canada and Mexico contribute over half of all U.S. international visitation. Despite the maturity of these source markets, their arrivals patterns have deviated significantly over the past decade (see Chart 5). Most notably, in 2014, arrivals from Canada declined by 2% while visitation from Mexico jumped 19%. Though at a far more moderate pace, future arrivals from Mexico are expected to continue growing substantially faster than arrivals from Canada. Mexico s stronger gains will be driven by overall economic progress and expansion of the middle class. FY2016 OBJECTIVES, SUMMARY MARKETING PLAN, & BUDGET Chart 5 U.S. ARRIVALS NORTH AMERICAN MARKETS

20 SITUATION ANALYSIS OVERSEAS OUTLOOK Barring any economic shocks due to Greece s financial woes, European markets will be a substantial source for visitor growth over the next several years (see Chart 6). After the steep recession of 2009, many European markets like France, Italy and Spain remained volatile as their economies struggled for stability. After more than four years of conservative spending patterns, pent-up demand will boost volume from these European markets for the next several years as consumers once again feel confident enough to indulge in long haul leisure travel. Unfortunately, currency exchange rates are dampening the trajectory of the recovery in the short term. In some ways, current arrivals trends may seem like a reversal of recent years. In 2015, emerging markets like Brazil are cooling off while Europe is heating up. These trends are temporary. Brazil will return to higher than average growth and Europe will again settle into a more modest pace after an initial wave of recovery. Chart 6 U.S. ARRIVALS OVERSEAS MARKETS

21 China s economy has been the subject of much conjecture due to a number of negative indicators, including real estate and stock market volatility. Regardless of China s ability to hit its GDP target of 7%, the country still maintains more than double the GDP growth of most established markets. Therefore, despite longer term deceleration of growth, Chinese arrivals are expected to maintain a strong, double digit trajectory for years to come. By 2021, China may overtake the United Kingdom as the largest overseas market. FY2016 OBJECTIVES, SUMMARY MARKETING PLAN, & BUDGET

Summary Marketing Plan

23 FY2016 OBJECTIVES, STRATEGIES, AND GOALS Note: FY2015 numbers are projected as of 7/19/15 #1 DRIVE RESULTS Increase international visitation, spend, and global market share for the USA. Goals: 1.04 million incremental international visitors (vs. 903,440 in 2014 and 1 million in 2015) $3.8 billion in incremental international spend (vs. $3.1 billion in 2014 and $3.4 billion in 2015) $7.6 billion in total economic impact (vs. $7.06 billion in 2014 and $7.3 billion in 2015) 51.400 incremental jobs supported (vs. 50,000 average in 2013 and 2014) Manage overhead to remain below 15% Strategies: Maximize return on investment by deploying the right messages, in the right markets, through the right channels, at the right times, and at the right levels of investment. FY2016 OBJECTIVES, SUMMARY MARKETING PLAN, & BUDGET Establish processes and systems to maximize, track, and report use of our overhead to ensure the majority of our annual budget goes to effective marketing initiatives. Shift marketing expenditure to markets that drive higher ROI (emerging markets) by securing contributions that are optimized for growth/higher ROI markets and maintaining presence in co-op programs. Execute consumer advertising in selected markets that effectively target travelers and positively impact their intent to visit the USA (according to market prioritization and segmentation strategies). Track and document results of all programs segmented by country and ensure that all programs meet our messaging objectives. Execute third annual ROI study summarizing the impact of all Brand USA marketing activities. Conduct in-market post-campaign studies and monthly brand tracking reports.

24 SUMMARY MARKETING PLAN #2 CREATE INNOVATIVE MARKETING Promote the entirety of the USA with innovative marketing that supports all 50 states, the District of Columbia and five territories to, through, and beyond the gateways. Goals: Launch the USA marketing campaign in 14 key markets as outlined in the Marketing Plan Summary. Improve appeal of creative and brand recognition by 5%. Increase website visitation and social engagements by 5%. Execute metrics evaluation plan according to planned delivery schedule. Strategies: Develop and launch compelling new creative, messaging, content, and marketing plan that inspire travelers to visit the USA. Optimize the mix of consumer marketing, trade outreach, and co-op programs and platforms to increase awareness, intent to travel and demand. Engage and inspire travelers through storytelling that emphasizes experience and provides a call to action. Build and distribute dynamic content with a focus on the Great Outdoors, Urban Escapes, Culinary, and other inspiring experiences. Maximize the launch of the giant-screen film to celebrate the Centennial of the National Park Service and promote travel to the USA and the National Parks.. Leverage traveler segmentation and market prioritization to maximize effectiveness and efficiency of all efforts, including identifying the most valuable traveler segments as well as key markets for investment. Develop programs to engage partners along this roadmap. Establish a development roadmap and partner programs plan that supports the deployment of marketing spend in the markets that drive the strongest increases in, or defense of, visitation, spend, and/or market share. Design and launch a new consumer website that informs, engages, and inspires travelers to proceeding through the travel planning journey. Develop and deliver 2016 metrics plan to provide leading and lagging indicators of market conditions, trends and ROI to support the Path to 100 Million International Arrivals.

25 #3 MARKET THE WELCOME Inspire, inform, welcome, and thank travelers while accurately communicating vital and compelling information about visa and entry policies. Goals: Achieve 100% of annual objectives shared with the Tourism Policy Council Deploy Federal resource program in three embassies by fiscal year-end Deploy international arrival program in five international arrival halls with 100% compliance to brand and national voice FY2016 OBJECTIVES, SUMMARY MARKETING PLAN, & BUDGET Strategies: Collaborate with the Federal government to communicate vital and compelling information regarding visa and entry policies through all Brand USA channels. Develop FY2016 shared objectives and work plan with the Tourism Policy Council to execute collaboratively during the fiscal year. Collaborate with the U.S. missions abroad to develop new collateral and enhance existing communications materials that can be distributed and displayed at embassies, consulates, key information centers, digital properties, meetings, and high-profile events. Redevelop and expand a rich digital site and communications plan in cooperation with our Federal partners and travel suppliers to provide information to improve the travel experience. Support the expansion of the Market the Welcome program developed for airports to U.S. embassies and other relevant welcome organizations to carry the brand and national voice. This effort will include, but will not be limited to, the creation of video, signage, and other collateral for international arrival halls. Collaborate with the Department of Homeland Security to promote trusted traveler programs, such as Global Entry. Working with the Tourism Policy Council, determine the key metrics to track the success of entry policy communication and other joint promotional efforts.

26 SUMMARY MARKETING PLAN #4 BUILD AND MAINTAIN TRUST Build and maintain trusted relationships with stakeholders worldwide through inclusive, proactive, and transparent outreach with a commitment to compliance and integrity through words, actions, and results. Goals: Achieve 100% compliance with policies, procedures, and the Travel Promotion Act Benchmark year: Earn an 85% overall annual satisfaction rating with domestic partners (with benchmark year survey questions to measure against the marketing and communications strategies for this objective) Manage ESTA submission cycle time to 85 days or fewer for cash contributions and 120 days or fewer for in-kind contributions Strategies: Ensure ongoing compliance management and monitoring with appropriate policies, procedures, and controls. Deliver well-documented and compliant ESTA submissions. Produce and deliver the organization s FY2015 annual report to the Department of Commerce for transmittal to Congress by May 15. Produce and deliver the organization s annual objectives, budget, and marketing plan to the Department of Commerce by August 1 for FY2017. Develop a communications and cultivation strategy to support all departments and ensure we consistently employ inclusive, proactive and transparent outreach with stakeholders worldwide. Ensure full engagement with partners to maximize partner satisfaction and retention that establishes Brand USA as their go-to partner to support their international marketing effort. Execute partner feedback study and report results. Continue to deploy and expand strategic communications, industry relations, and media relations plans that ensure consistent, accurate, and frequent updates on progress through a series of webinars, newsletters, meetings, and other communications. Cultivate industry relationships and seek partner input and feedback through a series of partner roundtables and other cultivation events. Maintain active participation in key industry conferences.

27 #5 ADD AND CREATE VALUE Pioneer cooperative marketing platforms and programs that leverage and grow the USA brand in ways our partners would be challenged or unable to do on their own. Goals: Generate $100 million in contributions from private industry and other non-federal sources Target 50% from cash contributions and 50% from in-kind contributions, but no less than 30% cash and no more than 70% in-kind Maintain a 90% or higher partner program retention rate in FY15 over FY14 Increase partnership base to 525 Strategies: Build upon the effectiveness of our overall destination marketing strategies by leveraging the strength of Federal resources, including embassies and consulates, worldwide. Participate in the development of in-country strategies with Department of Commerce Commercial Service offices and Visit USA committees. Collaborate with the State Department and the Foreign Commercial Service on in-market communications, social media, and embassy events. FY2016 OBJECTIVES, SUMMARY MARKETING PLAN, & BUDGET Engage with partners to create scalable programs across multiple budget levels by sharing insights, best practices from past programs, and co-creating 2017 initiatives with ample lead times. Create industry-leading, compelling and scalable turnkey programs that showcase the full variety of U.S. destinations. Continue to establish programs that allow partners to contribute and engage across all markets to leverage and promote their assets to international audiences. Focus development efforts on securing in-kind media to enhance Brand USA consumer campaigns or co-op campaigns, extending the reach of USA marketing efforts. Establish a strategy with major partners to amplify a national voice in markets and expand reach while developing other market entry programs. Share proprietary Brand USA insights with partners to provide guidance for cooperative marketing strategies.

28 SUMMARY MARKETING PLAN ONGOING PROMOTIONAL ACTIVITIES Brand USA will utilize a number of market-driven platforms and programs to increase inbound visitor travel to the United States and drive tourism dollars to communities in all 50 states, the District of Columbia and the five territories. Our programs will include the USA marketing campaign, trade outreach initiatives, co-op marketing opportunities, and media/ public relations outreach that, in total, promote the United States in its entirety, and add and create value for partners. THE USA MARKETING CAMPAIGN (DIRECT-TO-CONSUMER) The USA Marketing Campaign, which includes any combination of broadcast, out-of-home, and digital/social, plus earned media and public relations, has been fundamental to Brand USA s aim to create awareness and inspire travel to the United States. During FY2016 we will refresh and expand the creative approach and calls-to-action inherent in this campaign to further enhance the ROI of these efforts. While the media mix will vary by market, Brand USA will consider and utilize the following channels: Broadcast and Online Video The creative featured in our campaign advertisements was informed by consumer research and will continue to be enhanced by learnings from consumer testing in target markets. In addition to the tangible results these campaigns deliver, they provide opportunities for our partners to reach international travelers through co-op markeitng opportunities. Out-of-Home Out-of-home advertising, which includes signage (print and digital), video, and other public/ on location advertising, will be utilized in appropriate markets in order to reach international travelers when they are in active public places. These include, but are not limited to public transportation and transit (subway, taxi, bus, etc.), and commercial locations (city centers, retail venues, cinema, etc).

29 Digital/Social Platforms and Channels Digital and social media strategies will continue to be an important method to inspire, engage, and activate international travelers to visit the United States during the plan year through: Proprietary website platforms Social media channels Global digital marketing and social campaigns Proprietary Consumer Website Platforms Brand USA has two online consumer identities in the marketplace: Discover America (www.discoveramerica.com), which is active in most markets where Brand USA markets the United States to international travelers, and Go USA, which is active in Chinese-speaking markets, including China and Hong Kong (GoUSA.cn) and Taiwan (GoUSA.tw). Together, the Discover America and Go USA website platforms are the consumer-facing online identities that international travelers associate with travel to the United States. Social Media Channels In addition to the global and market-specific Discover America and Go USA proprietary websites, Brand USA leverages related social media accounts in consumer-facing content and communications. Each market where Brand USA has a fully-developed marketing presence has a dedicated, in-language website and social channels, which Brand USA uses to reach consumers in its target markets. FY2016 OBJECTIVES, SUMMARY MARKETING PLAN, & BUDGET

30 SUMMARY MARKETING PLAN Current Global Footprint for Social Media Activity In addition to its global channels, Brand USA, through its Discover America brand, currently has localized social media efforts globally and in 14 markets. All in-language content is tagged with the country-appropriate handles and websites via the channels shown below: Country In-Language Website Facebook Page URL* Twitter Handle* Global DiscoverAmerica.com Facebook.com/DiscoverAmerica Twitter: @DiscoverAmerica YouTube: youtube.com/ DiscoverAmerica Instagram: DiscoverAmerica Google+: google.com/+discoveramerica Australia au.discoveramerica.com Facebook.com/DiscoverAmericaAUS @DiscoverusaAUS Brazil discoveramerica.com.br Facebook.com/DescubraEUA @DescubraEUA Canada English: discoveramerica.ca French: discoveramerica.ca/fr Facebook.com/DiscoverAmericaCA @DiscoverUSAca @DiscoverUSAqc Chile discoveramerica.cl Facebook.com/DescubreUSAcl @DescubreusaCL China GoUSA.cn GoUSA.tw Sina Weibo (Chinese microblogging site/hybrid of Twitter and Facebook): http://e.weibo.com/u/3606551013 Tencent Weibo (Chinese microblogging site): http://t.qq.com/discovergousa Youku (YouTube equivalent): http://u.youku.com/ 美 国 国 家 旅 游 局 GoUSA Weishi (similar to Vine): http://www.weishi.com/u/23484775 Facebook (Hong Kong & Taiwan): Facebook.com/gousa.official France discoveramerica.fr Facebook.com/discoveramericafr @DiscoverUSAFR Germany de.discoveramerica.com Facebook.com/EntdeckeAmerika n/a (not locally relevant) Hong Kong GoUSA.cn Facebook (Hong Kong & Taiwan): Facebook.com/gousa.official Tencent Weibo (Chinese microblogging site): http://t.qq.com/discovergousa: Youku (YouTube equivalent in market): http://u.youku.com/gousa India discoveramerica.co.in Facebook.com/DiscoverAmericaIndia @DiscoverusaIN Japan discoveramerica.jp Facebook.com/DiscoverAmericaJP @DiscoverUSAjp South Korea discoveramerica.co.kr Facebook.com/DiscoverAmericaKR @DiscoverUSAkr Mexico discoveramerica.mx Facebook.com/DescubreeuaMX @DescubreeuaMX Taiwan GoUSA.tw Sina Weibo (Chinese microblogging site/ hybrid of Twitter and Facebook): http://e.weibo.com/u/3606551013 Facebook (Hong Kong & Taiwan): Facebook.com/gousa.official United Kingdom discoveramerica.com Facebook.com/DiscoverAmericaUK @DiscoverUSAuk * or similar channels in market

31 Global Digital Marketing Social Campaigns Throughout the year, the Brand USA digital team partners with local experts in each market to apply their global marketing insights to create culturally-relevant social media content and campaigns. Brand USA Current Campaign Hashtags General Content #DiscoverAmerica Giant-Screen Film #VisitTheUSA Road Trips #RoadTripUSA Great Outdoors #OutdoorsUSA Culinary #TasteUSA The custom social campaigns provide localized digital and social presence in nine international markets, with one global presence in English. In addition to engaging international travelers through ongoing conversations via social media channels, Brand USA also develops a variety of custom programming, including a series of road trips that showcase the United States and inspire travelers to take their own journeys. As Brand USA s social media influencers drive across the United States, they share their experiences blogging and posting photos and videos of their travels, with Brand USA further supports their communication efforts with comprehensive digital content and promotion plans, as well as functionality on Brand USA s Discover America platforms that move travelers from inspiration to action by providing them the tools to plan and create their own road trips, access curated playlists inspired by iconic routes, and share their experiences. FY2016 OBJECTIVES, SUMMARY MARKETING PLAN, & BUDGET

32 SUMMARY MARKETING PLAN Discover this land, like never before. DISCOVER america 19 Amazing vacation Road Trips discounts inside Market Information 2015 Germany, Austria & Switzerland Market Information 2015 CO-OP MARKETING PLATFORMS AND PROGRAMS (DIRECT-TO-CONSUMER) BRAZIL Brand USA Co-op marketing platforms and programs make up the majority of our marketing efforts and deliver an array of marketing options to increase awareness, visitation and spend. They also provide opportunities for partners of all shapes and sizes to participate and are an important way we promote travel experiences in the United States to, through and beyond the gateways. Brand USA Originals Brand USA Originals are marketing programs developed and offered exclusively by Brand USA. They include proprietary programs developed by Brand USA and those created in partnership with influential travel media and major travel and lifestyle brands. Brand USA Affinity Programs Affinity programs are programs that Brand USA has developed with media, online travel agencies (OTAs) or other travel-related publishers to advertise and promote U.S. destinations, experiences, attractions and other travel opportunities. They are a particularly valuable way to highlight partner offers and inspire USA travel experiences. Market-Specific Programs Through market specific programs, Brand USA connects partners with its in-country experts to ensure co-op marketing efforts are deployed in the right markets. Programs are designed for either partner launch or expansion in established or emerging markets. These programs are ideal for cities and states that are focusing on specific markets or entering a market for the first time. TRADE OUTREACH Brand USA currently works with its expanding network of international representatives, Visit USA committees, travel and tourism advisory boards, U.S. embassy personnel and U.S. Commercial Service teams to support participation in numerous trade activities, including: Trade Shows Sales Missions, Road Shows, and Themed Events Training Initiatives MegaFams and Other Familiarization Tour Opportunities Advisory Boards

33 Trade Shows Throughout the year, Brand USA hosts a series of USA-branded pavilions at influential travel and trade shows providing participating U.S. exhibitors the opportunity to reach 1.6 million international travel buyers and inspire future travel to the United States. Brand USA serves as the unifying element at these shows, representing U.S. travel and tourism interests on a global scale, with destinations, travel brands and other organizations participating as exhibitors. Participating organizations retain their own identity yet benefit from being part of a more visible, collaborative United States effort. To further amplify the USA s and participating partners presence, Brand USA also organizes related events before, during and after many of these shows. Unified Brand USA pavilions provide exhibitors: Market analytics and insights Marketing, advertising, public relations activities and media exposure Increased global exposure Customer engagement and entertainment opportunities Sales Missions, Road Shows, and Themed Events Another essential component of Brand USA s trade outreach includes sales missions. These Brand USA-hosted events invite travel industry professionals in key markets to meet with U.S. organizations at designated international locations. Through a series of planned events, Brand USA and sponsor partners connect directly with international travel buyers, including tour operators, airlines, travel agents, incentive and meeting planners and media. These connections allow us to provide a more in-depth look at U.S. destinations and experiences in order to increase travel bookings to the United States. FY2016 OBJECTIVES, SUMMARY MARKETING PLAN, & BUDGET Our outreach also includes taking participants directly to the travel trade in international markets via Road Show events. Brand USA and partner organizations are able to connect directly with tour operators, travel agents and travel buyers through a series of seminars, receptions and events where participating partners acquire the knowledge and information needed to better promote the United States as a travel destination. Based on market need and opportunity, Brand USA also organizes custom themed events in key international markets that position and promote the United States as the go-to travel destination. These events are generally celebratory programs, themed around specific holidays and experiences to help promote destinations, travel brands and other organizations. Training Initiatives Two distinct Brand USA travel trade training initiatives provide the tools and information our international travel buyers need in order to sell, up-sell and cross-sell U.S. travel destinations and experiences.

34 SUMMARY MARKETING PLAN USA Discovery Online Training Platform This experience-based, hands-on training platform features a variety of destination modules to inspire and motivate the travel industry to sell this land like never before. Modules focus on certain states or areas, and travel agents and tour operators can earn specialist badges as they complete each section. Training Seminars Brand USA also presents in-market training seminars that focus on a specific experience or region in the United States providing a targeted approach to promoting U.S. travel destinations. MegaFams and Other Familiarization Tours Familiarization tours, or fams, with the travel trade are an integral part of the organization s marketing strategies to create awareness of the diverse destinations and travel experiences available throughout the United States. The Brand USA fam tours are called MegaFams because they are the largest multi-itinerary simultaneous familiarization tours conducted in the United States. Brand USA organizes and coordinates these diverse U.S. travel experiences in order to more fully promote multiple destinations. They are especially effective in motivating the travel trade to sell beyond-the-gateway experiences to their clients, because the itineraries include a broad range of travel experiences, attractions and brands from the popular gateway cities to off-the beaten-path encounters. Through Brand USA MegaFam experiences, travel agents and tour operators become better informed, empowered and inspired to sell a multitude of U.S. destinations to, through and beyond the gateways. MEDIA AND PUBLIC RELATIONS OUTREACH (CONSUMER AND TRADE) Brand USA works with media outlets to promote the entirety of the United States and offers a number of programs that provide partners opportunities to increase awareness and inspire travel to their destinations through the power and credibility of earned media coverage. Leveraging its access to and relationships with journalists, plus its online newsroom platform and ongoing scheduling of journalist familiarization tours, Brand USA promotes destinations and travel experiences in every state, the District of Columbia and the five territories with extensive media coverage in both travel trade and consumer media, including broadcast, print and online.