1. POWERHOUSE ECONOMIES BRIC COUNTRIES BRAZIL RUSSIA INDIA CHINA Duzce University, 9° May 2014

2. CONTENTS Analysis of the questionnaire (London Fair testing feedback collected by Serena Accogli and Francesca Buongiorno) and qualitative support of experts: Diego D’Ermoggine for Brazil Alessio and Leonardo Fredduzzi for Italia – Russia association and then in Company Most Italia Wolfang Arlt for China Outbounding tourism and Antonella Decandia for Orientalialab Literature review See moodle platform 2

3. ANALYSIS OF THE QUESTIONNAIRE (1) 6 experts answered the questionnaire in London Fair Nationality: -Russian -Bulgarian -English -Chinese -Italian -Indian Kind of agency/institution: Tour Operator; Tourism Center/Association Education in Travel Tourism Sector 3

4. 4 B RAZILIAN TOURISTS : A NEW AND RICH OPPORTUNITY Some macroeconomic factors - Stability of the economy and strength of democracy - Strength of the money - Social ascension for millions of citizens changed the shape of the social pyramid Impact on tourism industry - Higher internal prices - Increasing of Brazilian tourism outside Brazil - More people travelling abroad - Higher spending per capita

5. 5 W HERE B RAZILIAN TOURISTS HAS GONE UP TO NOW ? Source: “Época”, n.723, 26 th March 2012. elaboration on OMT and Brazilian Ministery of Tourism data

6. BRAZIL-B RAZILIAN TRAVEL TO E UROPE (1) Background 1/3 of Brazilian outbound trips Good growth potential but: -Europe’s share shrunk in recent years -Increased competition -Domestic & short-haul is growing Changes in the visa process (US & Mexico) Higher airfares and additional surcharges What Brazilians want -Family visits -City lights & shopping -Music & entertainment -Sport -Cultural visits 6

7. BRAZIL-B RAZILIAN TRAVEL TO E UROPE (2) How Brazilians book their trip 1. Online 2. Tour operator & travel agency 3. Direct website of accomodation providers What Brazilians need when they travel -working public transport (and so reaching easily a place) -cultural visits (in particular places/things which are very ancient; historical. e.g. : Switzerland) Adventages of European countries with the same culture/linguistic ties: Spain and Portugal. Brazilians feel uncomfortable in other countries because they don’t speak/understand English or other European languages very well. 7

8. BRAZIL-B RAZILIAN TRAVEL TO E UROPE (3) Requirements: -taxes and regulations are not a big issue right now -the language is the most important requirement News in the travel market The improvement in Visa regulation for the Americas could bring to a decrease in outbound tourism to Europe Europe should show Brazilians not just its famous destinations/capitals, such as Madrid, Paris, Rome. Increased competition>Europe has to show something different/unknown to attract Brazilians’ attention. European clichés of Brazilians: -football -samba -warm weather 8

9. BRAZIL-B RAZILIAN TRAVEL TO E UROPE (4) Brazilians: love travelling in January or for Christmas holidays in general and they expect and appreciate cold weather; consider travelling a big priority; show off when they come back from Europe; want to go to countries which speak their native language. But who travels? Growing Brazilians Middle class with more spending power Middle-aged 9

10. 10 S OME CONSIDERATIONS ABOUT DATA USA - Florida, Boston, New York, Los Angeles - Business travel Portugal - Historical links - Entry gate to Europe due to the aggressive politics of TAP airlines France - Glamour - Historical and cultural links - Promotion

11. 11 S OME CONSIDERATIONS ABOUT DATA Italy - Historical and cultural links - Below-potential - Unexploited target of IB people - Unexploited target of wine and culinary tourism - Big potential for new destinations - Big results when they invested in strong and alternative communication (remember Momento Italia-Brasil, remember Tuscany) Spain - Historical and cultural links - Below-potential -Unexploited target of wine and culinary tourism - Big potential for new destinations United Kingdom, Germany - Study tourism - Business travel

12. 12 W HAT ARE THE PRINCIPALS CHARACTERISTICS OF B RAZILIAN TOURISTS ? Polarization of the market Mass Key points: - price - standardisation - “more for less” - big numbers Luxury - exclusivity - curiosity - emotions - experience - guarantee of standards - new destinations

13. 13 W HAT THEY NEED ? Common characteristics - Attention to details and personal touch - Attention to services for children - Romantic trips for couples - Culture and education - Courtesy is a must! - Smile! Smile! Smile! - Minimum standards of comfort are compulsory! - Language can be a winning strategy - Surprises (exceeding expectations) - Brazilian people are social (social networking, photos, 2.0)

14. 14 W HAT IS POSSIBLE TO DO ? Big potential and big ignorance - To know the market and its segmentation in depth - To sell dreams and reality - To make strong follow-up actions - To think different, with attention to the totally unknown Europe for Brazilian (example Italy: Italy is more than simply Rome-Venice-Florence-Milan...there is an enormous potential)

15. RUSSIA-R USSIAN TRAVEL TO EUROPE (1) OVERVIEW- RUSSIAN MARKET Russian Tourism =Dinamic Market. 2010: increased trend compared to 2009 43 ml people travel abroad: CIS countries Europe Most common destination Turkey Egypt China 15

16. RUSSIA-R USSIAN TRAVEL TO EUROPE (2) Europe is considered: an easy destination to be reached (in some cases only 3hours or 3 hours and half ); cheap (as there’s a lot of competition with flights) Some destinations limited in their potential due to the VISA, BUT in the last 5 years many European countries have set up Visa offices –easy to get aVisa in 3-4 days. How Russians book their vacation Online Tour operator Travel agency Russians focus not on destination, but on individual needs; love booking excursions. 16

17. RUSSIA-R USSIAN TRAVEL TO EUROPE (3) Who travels? Middle-aged Young People Purpose Leisure (the most important) Traditional heritage Education (However, in London Russians come for business) Russians are not influenced by the political state of one country (e.g. Despite crisis, they choose Spain/Greece). Russian market is developing and is independent from political matters. 17

18. Vip Classic (oligarchs, establishment, big entrepreneurs) Budget: unlimited 7 Milions travellers Richmen (entrepreneurs, middle establishment) Budget: € 10.000 - € 40.000 2 Milions travellers 9 milions travellers: Target for 5 Stars Hotels&Services R USSIAN T OURISTS O VERVIEW - 1

19. «Snobbish» (it’s a new kind of tourist) Sport and Ecology Oriented Budget: € 5.000 – € 15.000 Part of the middle class Middle Class (qualified workers, little entrepreneurs, managers) Budget: € 1.500 - € 3.000 3 and 4 stars hotels ( 3 stars mostly) 1 Milion travellers R USSIAN T OURISTS O VERVIEW - 2

20. «working class» Tour and Group travel Oriented Budget: € 500 – € 1.500 10 milions travellers 14% of Russian Citizens spends holiday outside Russian Federation. 20 milions travellers R USSIAN T OURISTS O VERVIEW - 3

21. 14% of Russian Citizens spends holiday outside Russian Federation. 20 milions travellers 40% of the russian travellers books 5 stars hotels. R USSIAN T OURISTS O VERVIEW - 4

22. SERVICE% Preference Food & Beverage34% Room27% General service level25% Staff availability16% Family oriented facilities16% Wide services offer14% Entertainment&Music13% Bar Service7% R USSIAN T OURISTS P REFERENCES ABOUT ITALIAN TOURISTIC MARKET SERVICES

23. R USSIAN T OURISTS P REFERENCES Room Service 24/h Satellite – Russian TV Boiler for tea Menu with soups also in Summer

24. CHINA OUTBOUND TOURISM Likewise, as China’s middle class continues to grow, the number of Chinese tourists traveling the globe continues to rise as well.

25. The number of Chinese people who traveled overseas as a group organized by travel services was 20.2192 million, up 21.5%. Top Foreign Destinations of Chinese People 1. South Korea 236.782 0.3% 2. Malaysia 173.786 8.1% 3. Japan 162.79 -17.3% 4. Thailand 152.26 50.1% 5. The United States 136.04 26.3% 6. Cambodia 121.552 231.0% 13. Italy 38.12 40.2% 25

26. Chinese people are eager to go sightseeing overseas which creates an immense market for some nearby countries Since mid August, overseas tour products have been in great demands. South Korea, Thailand, U.S., and Europe are among the most popular destinations. European tours in some agencies have been sold out. UK tours have become a major highlight after the Olympic Games. In terms of destination, the Europe-bound tourist market is exceptionally thriving thanks largely to the Olympiad and foreign exchange. Due to less strict visa policy, the American markets have become a new force. Short-distance products in Southeast Asia are major players in the Golden Week market. Maldives, Bali, Seychelles, and other islands are also popular destinations. Source: CE.cn 26

27. WHAT CHINESE TOURISTS LOOK FOR? According to statistics provided by CYTS' aoyou.com, holiday consumption is becoming a powerful force. The average price of an order exceeds RMB 15,000 Yuan High-end holiday products in great demands Tourists now are more inclined to casual vacationing, extensive exploration tours, and other unrestricted itineraries, deigning their own routs and booking flight tickets and hotel online More importance to improving product content, resources control, quality guarantee, and differentiated products Customized tour products tailored to vacation demands have been growing rapidly in recent years, and are expected to grow by about 20 percent during the double holidays. 27

28. CHALLENGES? Edu Tourism : Partnership Social development Business models (different systems) Cultural Issues: Language abilities Cultural understanding Food Visa controls: Invitation system Visa Product evaluation: Airlines Accomodation Restaurants Transportation during Spring holidays and other main Chinese holidays 28

29. INDIA TOURISM MARKET OVERVIEW India represents one of the most potential tourism markets in the world. India shows slowing population growth, but ageing more quickly : - Becoming more middle class, as well as middle aged - Upwards of 50m middle class consumer, of which 30m hold passport - The middle class will continue to grow for the foreseeable future Slowing economy, but inflaction accelating : - Indian per capita GDP is still low by western (and BRICS) countries - Indian GDP per capita is forecast to grow rapidly - Inflaction will continue to be a problem 29

30. Indian fast growing but competitive outbound market - Outbound travel from India has grown double-digit most years in last decade, but with big fluctuation - Outbound to Europe has moved ahead strongly but our share is declining - Trips to Europe should break the 2m barrier by 2015 - Switzerland remains the role model for NTO’s Air capacity to Europe is now easing back FLIGHTSSEATS 201028577.300 201129279.300 201226473.800 30

31. Air connectivity and capacity - The liberated air transport regime has favoured scheduled services rather than charters - Liberation led to a rapid expansion in services with up to 20 airlines operating to Europe - Flights have eased back since the great recession, with seats at around 70,000 average weekly capacity this year - Lufthansa, Air India and Jet Airways are the high share carries The phenomenal growth in outbound travel could be a by-product of many economic and social factors, most important being material prosperity and urge for travel and life styles. Other contributing factors being ease of travel documents like passport, visa, relaxation in foreign exchange regulations, better awareness of destinations and benefits of travel etc. 31

32. F OCUS C INA : APULIA IN BRICS CASE STUDY A model of tourism based on the seaside – especially in summer BUT There are a lot of other potentials So we have identified 10 attractors to visit Apulia exploiting the Expo 2015 event that has as symbol of the Italian stand the tree of the life- otranto cathedral Otranto is the eastern Italian city that fighted the Ottoman emperor and avoid the invasion «Mamma li turchi» 32

33. F OCUS C INA : APULIA IN BRICS CASE STUDY WHAT Training sections In combination with Promotion of the territory WHEN until now Training seminars with tourism operators in Apulia focusing on China Participation at the COOTM Fair in Beijing BRICS in tour project won the silver award for product of innovation 33

34. APULIA IN BRICS A network of tourism companies, local authorities and training centres 34

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38. Thank you for your attention Gabriella Pappadà, direzione@ce-res.org This project has been funded with support from the European Commission. This communication reflects the views only of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein. Facebook BRICS in tour Facebook fan page BRICS in tour Twitter BRICS in tour