Solid results strengthen case for Brand USA

Solid results strengthen case for Brand USA
By admin


Although the future of Brand USA remains subject to review, the destination marketing organisation is upbeat as it confirmed that it is delivering on its major objectives, with Australia a standout performer.

Stakeholders will review its success next year, with the results to determine its future. But, although the first incarnation of the tourism body got off to a “rough start”, this latest push is seeing tangible results, according to senior vice president international partnerships Alfredo Gonzalez.

In Australia for a series of industry and media events, he revealed that Brand USA will start the 2014 fiscal year with close to $100 million in the bank, with more than $130m received in partner contributions over the 2013 fiscal year in addition to the funds collected from the ESTA visa program.

Brand USA has spread its network of offices from three offices just seven months ago to now cover markets that generate a combined 92% of traffic into the US. It will expand into Central Europe and Russia within the next six months, Gonzalez revealed.

In addition, a recent report conducted by Oxford Economics across eight key markets found that Brand USA had generated 1.1 million incremental visitors in 2013, $3.4 billion in visitor spending, 53,181 new jobs and $47 for every $1 spent.

But Gonzalez stressed the importance of ensuring that these benefits are felt across the entire country rather than just at the gateways which will be vital to ensuring its future, particularly as other sectors eye the ESTA program as a potential source of income.

“Everybody decided if Brand USA stays, not just the gateways,” he said. “Our goal is to make sure that everybody gets the benefits of the gateways.”

While Brazil demonstrated the highest levels of growth between September 2012 and October 2013, Australia is a close second with a rise in visitation of 11% recorded over that period, despite the fact Brand USA has only been locally represented by Gate7 since June and with limited air capacity.

“With that limited amount of seats, to achieve 11% growth – that’s nuts,” Gonzalez said. “We need to put more seats here.”

He welcomed United Airlines’ announcement last week that it will launch a new direct service between Melbourne and Los Angeles from October, with the boost expected to deliver an even greater increase from the Australian market in 2014.

“Let’s look at those numbers again next year once those extra flights have started,” he said.

If Brand USA is "reauthorised" next year, its future will be secure until 2025.

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