1. 1 BRICS IN TOUR Report POWERHOUSE ECONOMIES BRIC COUNTRIES BRAZIL RUSSIA INDIA CHINA

2. 2 CONTENTS Introduction Results of the questionnaire: WTM 6-8 November 2012 London and BIT FAIR 14-17 February 2013 Milan Powerhouse Economies Brazil Official data of Brazilian outbound tourism from Anac ( Agência Nacional De Aviação Civil ) and Embratur ( Instituto Brasileiro De Turismo. ) Russia China India 2

3. 3 INTRODUCTION The BRIC thesis posits that - China and India : world's dominant suppliers of manufactured goods and services, - Brazil and Russia : suppliers of raw materials. BRIC is now used as a more generic marketing term to refer to these four emerging economies. South Africa was officially admitted as a BRIC nation in 2010 after being invited by China and the other BRIC countries to join the group. (The capital “S” in BRICS stands now for South Africa) Since 2009 they met yearly and they have now such important projects for the development of the group.

4. 4 RESULTS OF THE QUESTIONNAIRE WTM 6-8 November 2012 LONDON BIT FAIR 14-17 February 2013 MILAN 4 Who answered the questionnaire Nationality of professionals : -3 Russian -Bulgarian -English -Chinese -Italian -2 Indian -Brazilian -Spanish Tourism sector : - tour operator - tourism center/association - education centre - tour operator and travel agency

5. 5 ANALYSIS OF THE QUESTIONNAIRE (2) 5 Key results of the questionnaire Cultural differences and living conditions are the most important issues Brics tourists should be notified about. Tour combining different well-known and less-known European cities could be interesting for BRICS tourists. Any country can do something locally to attract BRICS tourists: -Better destinations marketing for Brazil, Russia and South Africa; -Language for India; -Improving local conditions for all Brics countries. INTERESTS: Powerhouse economies are all attracted by: - Adventure, - Culture, - Fun

6. 6 ANALYSIS OF THE QUESTIONNAIRE (3) Most challenging problems for BRICS tourists language difficulties and prices are common for all BRICS countries; Russia, China and India have been selected for “reliability”, Brazil, Russia, China and India for “quality of services”, Food choice and the seasonality price fluctuation have been added as extra problems to be faced for Indian tourists.

7. 7 BRAZIL (1) 7 Brief overview of Brazil Brazilians is an ageing population, as the number of people over 35 is growing very rapidly. Brazil is the fastest growing country and the most important in South America. 1/3 of Brazilian outbound trips comes to Europe, but Europe’s share shrunk to the increased competition from other destinations (e.g. other parts of Brazil, Latin America and USA/north America) Another important issue which affects tourism is VISA Source: Magdalena Osmola, Marketing & Communications Manager, European Tour Operators Association (ETOA)

8. 8 BRAZIL (2) 8 What Brazilians like? love traveling in January (or for Christmas holidays in general) and they appreciate cold weather and snow; consider traveling abroad a big priority; show off when they come back from Europe; want to go to countries which speak their native language. Why Brazilians travel to Europe? family visits; city lights and shopping; music and entertainment; sport, such as football; cultural visits. Source: André Fass, Global Director of Product, Abreu Online

9. 9 Official data of Brazilian outbound tourism 9 S TRENGTHS WEAKNESSES Great cultural and artistic heritage; Cultural ties; Great variety of tourism packages; Kindness and hospitality of Italian people; High quality of wine and food; Good transports, above all train; Easy accessibility of the areas. High prices of services (compared to USA and South America); High price of flight ticket (compared to North America); Few charter flights; No promotional materials into Portuguese language. The Foreign Ministry and ENIT (National Tourism Agency) made a SWOT analysis of Italian tourism potential and weaknesses.

10. 10 Official data of Brazilian outbound tourism (2) 10 OPPORTUNITIESTHREATS Stability of Brazilian economy and growth of Brazilians’ incomes; Popularity of Italy thanks to the the “ Italia Comes to You ” Project; Strength of Brazilian currency against the euro end the dollar; Good opportunities for selling packages; More flights available for Italian destinations; International tariff liberalization; Growing spending power of Brazilians abroad. Competition of USA, Spain, France, Germany and Portugal, which have been investing in tourism advertising and promotion; Attractiveness of some destinations in America (e.g. Argentina and Chile), which offer good quality and prices; Great variety of cruise opportunities along the Brazilian and Argentinean coast; Few materials in Portuguese language.

11. 11 RUSSIA 11 Brief overview of Russia Russian tourism is a dynamic market, which grows every year. 43 ml people traveling abroad - a good share choose European destinations thanks to new flight connections and tickets prices. Russian travelers are middle-aged people who go to European countries for - leisure (the most important reason) - business. They are not influenced by the political state of one country (e.g. Despite crisis, they choose Spain/Greece). Some destinations are limited in their potential due to the VISA problems, but in the last 5 years a new system of Visa offices have helped people get a Visa in just 3 or 4 days. Source: Helène Lloyd, Director, TMI Consultancy

12. 12 RUSSIA (2) Russians in the UK They are -middle class traveling in groups; -“big spenders”; -most of them: young, aged 25, male and female with no distinction, looking for traditional heritage, educational and exciting tourism. Russians focus not on destination, but on individual needs and love booking excursions. Source: Alina Shamsutdinova, Sales & Marketing Director, Business Services International UK

13. 13 CHINA (1) Brief overview of China China has the world's largest population and the second largest GDP, with US 5,400 GDP per capita. The spending in international tourism in US dollars went up in 4 years time by 30%. The middle-aged people are: -coming up and the elderly people are coming up even more heavily. - the potential travels who are employed and gain most of the money. (As soon as they retired, they travel more.) Looking at the outbound trips, the annual growth rate is raising. Europe: -destination for education investments -an investment (in terms of experience). Source: Hans Dominicus, Marketing Manager of the Amsterdam Tourism & Convention Board 13

14. 14 Challenges of European tourism markets in China The visa application process is still an issue for Chinese tourists. As the majority of Chinese tourists coming to Europe are traveling in a group, they have hotels included, tickets for tourists attractions and they must have Chinese meals. Chinese tourists love shopping the most and are second to India when asked for luxury brands. Chinese people are willing to buy luxury brands considering that brand products are 40% cheaper in Europe thanks to VAT refund and lower taxes. Source: Dorosthy Teng, Department Manager Inbound Services of Kuoni/GTA 14 CHINA (2)

15. 15 GOOD PRACTICE CASES Best practice cases of European organizations and companies in Chinese outbound tourism COTRI (Germany, 2004) CFI (Spain, 2011) ChinaContact (Great Britain, 2005) GDA (Italy, 1987) Orientalia Lab (Italy, 2012) Starwood Hotels & Resorts Worldwide, Inc. (USA) Hilton Worldwide (USA) Harrods Limited (UK) The Fondazione Palazzo (Italy, 2006) Toscana Promozione (Italy, 2001) Source: Antonella Decadia from ORIENTALITALIA LAB 15

16. 16 INDIA Brief overview of India Indian population growth is slowing but ageing more quickly The economy is slowing but inflation is accelerating The outbound travel market is fast growing and competitive The air connectivity to Europe is still facing challenges Indian economy and its impact on tourism industry The Indian middle class is now the fastest growing in the world. Over 28 million passport holders in the country who are potential travelers. The GDP per capita is still low by western standards. But it is forecast to grow rapidly in the next decade. Source: Peter Nash, Head of Strategy Development of Tourism Ireland 16

17. 17 Image of Europe as a destination Europe share has declined over the last years (from 19% to 14% of all Indian outbound departures). The Indian travel trade estimates that the market for Europe is growing at a steady pace. Europe could accelerate it with greater focus by European tourism boards on the Indian market. Five European destinations: – United Kingdom, France, Italy, Germany and Switzerland. Switzerland is doing very good thanks to the Swiss tourism board that specially addressed India and launched some very special promotions creating links with Bollywood. Source: Peter Nash, Head of Strategy Development of Tourism Ireland 17

18. 18 Air transport capacity During the last few years there have been shortages in the availability of airline seats out of India on key routes. These have been caused by two factors, (i) the retrenchment which has been taken place by the national airline, Air China, which has made it difficult for the airline to fulfill its part of reciprocal route sights and (ii) the slow pace of liberalization within the air transport sector. The liberated transport regime has favored scheduled services rather than charters and led to a rapid expansion in services, with up to 20 airlines operated in Europe. Source: Peter Nash, Head of Strategy Development of Tourism Ireland 18

19. 19 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 19 This project has been funded with support from the European Commission. This publication [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.