Terry Dale, president and CEO of the U.S. Tour Operators Association
(USTOA), addressed the Swahili International Tourism Expo (S!TE) in Dar
es Salaam, Tanzania, with what he called a “fireside chat, an intimate
conversation with our partners,” in which he explained to travel
professionals selling the destination of Tanzania that partnership was
an essential tool in building their destination.
Now in its second year, S!TE is a travel trade show showcasing the Swahili Coast produced by the Tanzania Tourist Board.
The
tourist board invited Dale to be a keynote speaker in recognition of
the belief that targeting the elite tour operator association is the
most effective way to reach the broad base of consumers in the U.S.
Dale
began his talk with a brief introduction of the USTOA, explaining that
it is not an organization that derives its value from its large number
of members, but by their quality. The association has 54 corporate
members representing 160 brands and also has 690 associate members, of
which the Tanzania Tourist Board is one.
“It’s not about
quantity,” Dale said. “You’re not going to see that number grow next
year by a great deal. We are more like a family. We’re not driven by
growth, but by quality.”
Thirty-eight of the association’s brands already have programs to Tanzania, Dale noted.
“We
need to see that number grow to 50, to 75, to 100,” he said. “Part of
my responsibility in being here today is to go back to our members and
tell them, ‘I have seen firsthand how amazing Tanzania is and
(recommend) that they include more of Tanzania, more of Eastern Africa
into the products that we have to sell to the U.S. consumer.'”
Dale
cited a Price Waterhouse Cooper economic impact study showing that tour
operator members of the USTOA account for $13.5 billion in business
annually. They moved 8 million travelers last year, a five percent
increase over the previous year, and sold $9.8 billion in goods and
services.
The way for Tanzania to build itself as a tourism destination, said Dale, is by constructing a partnership.
“That’s why I’m here today,” he said, “to try to forge that partnership and make that business grow on behalf of Tanzania.”
Dale explained to the audience the reasons why he is “bullish about the U.S. travel industry.
“It
has tremendous potential,” he declared. “There is an educational
hurdle” to surmount in getting into the American market, he conceded,
but “it is feasible and possible” and something that needs to be
addressed immediately.
Dale cited a number of reasons why the
American market is an excellent target market for Tanzania, including
the following facts and statistics:
Fifty-six percent of Americans
are in the world’s high income group, and 46 percent have passports, a
total of 110 million people, a number that has doubled since 2000.
“They
have financial wherewithal to travel,” asserted Dale. “They have
passports, but we have the educational challenge of helping them
understand why Tanzania needs to be one of the places they visit."
In 2013, 30 million Americans traveled internationally, Dale pointed out. “But you have to educate them."
In
referring to the global economy, Dale cited a list of trends that may
have an impact on getting people to travel to Tanzania, including the
softening of the Chinese economy; Greece trying to figure out how to
handle its responsibilities to the International Monetary Fund as well
as the European Union; the Fed’s upcoming raising of interest rates and
the presidential political circus.
All of these have a potential impact on global economy, Dale stated, but he is still bullish about the U.S. economy.
Dale
cited the Packaged Travel Index, produced by Cornell University, which
studies U.S. consumers. The survey, conducted twice a year, showed that
84 percent of U.S. consumers said they want to travel internationally.
In households with income of $150,000 or more, people want to travel
three times a year.
“Those factors combined bode well for Tanzania,” said Dale, showing a strong potential U.S. market for Tanzania.
Dale
then explained what USTOA members need from Tanzania tourism services
providers, including “professional quality partners who can deliver the
kind of experience that make our members proud. Professionalism is
really key. Our members are all about building a personal relationship.
They want to be able to look at you across the table and have the
confidence that together you can create the kind of experience that we
can all be proud of.”
That kind of experience, Dale said, is “all about authenticity.”
The
U.S. consumer wants to rub shoulders with locals, he said. “And they
can only do that if you have the interaction, the engagement between the
traveler and the citizens of this country.”
Dale cited Tanzania’s
"Soul of Africa" campaign as a step in the right direction, but said,
“We still have a huge job ahead of us in getting that brand in front of
the U.S. traveler.”
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