Overcoming Seasonality in Tourism: Limits and Challenges a blueprint for Crete

Transcript

1 Overcoming Seasonality in Tourism: Limits and Challenges a blueprint for Crete Cyprus Hotel Association 38 th Annual Hotel Conference Nicosia, 02/02/2016 Dr. Aris Ikkos, ISHC Research Director, INSETE

2 About INSETE Institute of the Greek Tourism Confederation (SETE) SETE Intelligence- Documentation and Policy. Documentation of the tourism sector Studies and Policy Papers Human Resources development Quality Systems SETE Training- Tourism. People. Development.

3 Seasonality in Cyprus distribution of arrivals 30% 27% 24% 21% 18% 15% 12% 9% 6% 3% 0% Source: National Statistical Offices, processed by SETE Intelligence

4 Seasonality in the Med distribution of arrivals 30% 27% 24% 21% 18% 15% 12% 9% 6% 3% 0% CROATIA CYPRUS TURKEY SPAIN MALTA GREECE ITALY Source: National Statistical Offices, processed by SETE Intelligence

5 Seasonality Worldwide million arrivals

6 Seasonality in Europe million arrivals

7 Seasonality elsewhere million arrivals

8 S&B is Europe s top product 105,3 102,2 Σύνολο Ταξιδίων στην Ευρώπη, εκ. Συνολική Τουριστική Δαπάνη, δισ Million Trips in Europe billion spend 63,6 61,1 46,4 59,0 34,2 25,9 10,7 9,1 6,5 7,0 2,7 2,6 Sun & Beach City Break Cultural & Religious MICE Sport & Wellness Nautical Medical Source: IPK International, processed by SETE Intelligence

9 Impact of tourism on Greek economy CONTRIBUTION TO GDP Direct 10% Indirect 15% DIRECT CONTRIBUTION TO REGIONAL GDP CONTRIBUTION TO BALANCE OF PAYMENTS CONTRIBUTION TO SALARIED JOBS Tourism 30% Source: The Contribution of Tourism to the Greek Economy in 2014, SETE Intelligence

10 Seasonality in Greece International air arrivals distribution in % 14% 12% 10% 8% 6% 4% 2% 0% 30% 25% 20% 15% 10% 5% 0% Athens Thessaloniki Rhodes Cyclades Ionian Islands Source: Hellenic Civil Aviation Authority, processed by SETE Intelligence Reducing the overall seasonality of the country through city breaks etc. will not necessarily reduce the seasonality of S&B destinations

11 Seasonality in Crete International air arrivals distribution in % 21% 18% 15% 12% 9% 6% 3% 0% January February March April May June July August September Οctober Νovember December Crete Herakleion Chania Source: Hellenic Civil Aviation Authority, processed by SETE Intelligence

12 SETE strategic plan products City Break S&B C&R Sports Adventure Infrastructue F&B Health and Wellness CB CONF Culture & Religion Accommodation Security Sun & Beach plus Transport Events Agritourism SPORT Routing SEA MED Nautical Tourism Conference Tourism Source: PwC Εξειδίκευση της ζήτησης των τουριστικών προϊόντων και υπηρεσιών ανά κατηγορία προορισμού Πιλοτική εφαρμογή στην Περιφέρεια Κρήτης

13 Product analysis Per Region DEMAND FACTORS - Size of the market worldwide - Rate of Growth - Size of market at destination - Ease of access of destination SUPPLY FACTORS - Regional Priorities - Product Readiness - Multiplier Potential - Competitiveness (USPs) - Admin & Other obstacles Source: PwC Εξειδίκευση της ζήτησης των τουριστικών προϊόντων και υπηρεσιών ανά κατηγορία προορισμού Πιλοτική εφαρμογή στην Περιφέρεια Κρήτης

14 Strategic & Operational Plan SUN & BEACH ENRICHED (GASTRONOMY & CULTURE) SUN & BEACH + CULTURE & RELIGION SUN & BEACH + ACTIVITY & EXPERIENCE TARGET MONTHS MAIN TARGET MARKETS SECONDARY SOURCE MARKETS PROFILE OF TOURISTS LENGTH OF STAY ACCOMMODATION TYPE LIMITED BY FLIGHT CONNECTIONS BASED ON ANALYSIS OF CHARACTERISTICS OF TOURISTS FROM MORE THAN 10 MARKETS REPRESENTING > 80% INCOMING Source: PwC Εξειδίκευση της ζήτησης των τουριστικών προϊόντων και υπηρεσιών ανά κατηγορία προορισμού Πιλοτική εφαρμογή στην Περιφέρεια Κρήτης

15 Road Map Actions & Timeframe SUN & BEACH ENRICHED ACCESSIBLITY ENRICHMENT AIRPORT & OTHER INFRASTRUCTURE INFRASTRUCTURE & SERVICES SUN & BEACH + RELIGION COMPETITIVENESS COMMUNICATION & PROMOTION PRICING, HR, COSTS (TAXATION) MATERIAL, EXPOS, PR SUN & BEACH + ACTIVITY (HIKING) MONITORING FINANCING DMO SETUP EU & REGIONAL FUNDS Source: PwC Εξειδίκευση της ζήτησης των τουριστικών προϊόντων και υπηρεσιών ανά κατηγορία προορισμού Πιλοτική εφαρμογή στην Περιφέρεια Κρήτης

16 PACKAGE COST - P.P. Off season travelers do not spend less - just different Hotel Transfer Flight Excursion incl Excursion opt Margin Hi Season T.O. Off Season T.O. Source: Mitigating Seasonality & Impact on local economy, Andreas Birner Inova Hospitality

17 5 year target & impact + 60,000 passengers for October and 600 p.p. Direct Impact + 36,000,000 1,000 Jobs Total Impact + 90,000,000 2,250 Jobs

18 Thank you Dr. Aris Ikkos, ISHC