1. POWERHOUSE ECONOMIES BRIC COUNTRIES BRAZIL RUSSIA INDIA CHINA

2. CONTENTS Analysis of the questionnaire (London Fair testing feedback) Speaker 1: Serena Accogli CERES Technician Analysis of BRAZIL & RUSSIA. Speaker 2: Francesca Buongiorno CERES Technician Analysis of CHINA & INDIA. This project has been funded with support from the European Commission. This presentation 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. 2

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

4. ANALYSIS OF THE QUESTIONNAIRE (2) PROBLEMS: -The questionnaire is too long; -There are too many questions; -Half of the questions are open-ended. ADVICES from the interviewees: -join some questions (e.g. n.11 + n.13) -turn open-ended questions into close-ended questions (it would be easier and faster to answer) 4

5. 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 5

6. 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. 6

7. 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 7

8. 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 8

9. 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 9

10. 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. 10

11. 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. 11

12. CHINA INBOUND TURISM Closed to the outside world until just a few short decades ago China has rapidly become one of the world’s top travel destinations. China ranked #4 in international tourist arrivals in 2009 with over 50.9 million visitors and #3 with over 55.98 million visitors in 2011. Top 10 international tourists destinations 2009: 1. France: 74.2 million international visitors 2. U.S.: 54.9m 3. Spain: 52.2m 4. China: 50.9m Top 10 international tourist destinations 2011: 1. France: 78.95m 2. U.S.: 60.88m 3. China: 55.98m 4. Spain: 53.00m 12

13. Travelers to China are from the neighboring Asian countries The Beijing Olympics in 2008, the Expo Shanghai 2010 and other international events further promoted the popularity of China in other countries for worldwide tourists. It is estimated that inbound tours will stay on the same level or slightly lower than that of last year due to: - The international financial crisis - European debt crisis - Rising tour price in China - Foreigner's mentality to avoid peak seasons - China's tightening entry visa policy since April 13

14. 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 Festival and other main Chinese holidays 14

15. 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.

16. 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% 16

17. 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 17

18. 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. 18

19. 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 19

20. 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 20

21. 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. 21

22. THANK YOU FOR YOUR ATTENTION CERES Technicians SERENA ACCOGLI E-mail: sereacc86@libero.it FRANCESCA BUONGIORNO E-mail: francesca.buongiorno@hotmail.com Facebook BRICS in tour Facebook fan page BRICS in tour Twitter BRICS in tour 22