Tourism Development in Portugal - ccila- · PDF fileRoland Berger has been highly involved in...

Portuguese German Symposium

Lisbon, 20th October 2015

Tourism Development in Portugal: Business Opportunities for German Companies

2 LIS-9970-90000-019-83_Apresentação na CCILA_Oct 2015.pptx

Roland Berger has an extensive track record of cooperating with leading tourism companies throughout the world

Relevant selected clients

ROLAND BERGER

Source: Roland Berger

Founded in 1967 in Germany by

Roland Berger

50 offices in 36 countries, with around

2,400 employees

Nearly 220 RB Partners currently serving

~1,000 international clients

http://www.axaprivateequity.com/

3 LIS-9970-90000-019-83_Apresentação na CCILA_Oct 2015.pptx Source: Roland Berger

In Portugal we also have strongly contributed for tourism development within all main market segments

Roland Berger has been highly involved in Tourism development in Portugal

Cooperation with Turismo de Portugal and Lisbon Tourism Association in the

development of Strategic Plans

Selected Clients in Portugal

Grupo Espírito Santo

Tour Operators Investors

Entertainment Transport Companies

Hospitality

Government


2014

Lisbon

Madeira

Porto

Algarve

2014

Portuguese tourism sector is highly dynamic, with a strong recognition worldwide

Source: Press; Roland Berger


Portugal's notoriety as a top destination market led to a strong Tourism growth – Lisbon with the highest growth rate (14%)

Source: Turismo de Portugal; Roland Berger

Number of Tourists

16 M

Number of Foreign Tourists

9 M

Growth since 2013

12%

Main source market

Tourism performance in Portugal [2014]

United Kingdom

5 M 3 M 14%

4 M 3 M 13%

3 M 1 M 10%

PORTUGAL

Lisbon

North Region

Algarve


Germany has a significant relevance for Portugal as a source market and continues with a strong growth


Main Tourism source markets in Portugal [2014]

North Region

Lisbon

Algarve Madeira

Azores

1) Within foreign tourists

6%

11%

11%

16%

17% 12%

15%

20%

8%

11%

Number of tourists' growth since 2013

8% 4%

12%

7%

9%

German Tourists growth 2013-14


What is behind the success? - Portugal stands out with a set of differentiation factors supporting future development


Value for money Gastronomy

Concentrated diversity

Weather

> Well developed touristic offer with strong quality for relative low prices

> Highly appreciated traditional cuisine

> Pleasant climate throughout the year

> Opportunity to develop off season tourism

> Wide spectrum of touristic products (e.g. culture, sun & beach, nature)

> Different touristic attractions in a small range


Tourism development fueled a strong growth on touristic offers and its contribution to overall economy


2013

+25%

2007

9 '000 M€ 7 '000 M€

Tourism Revenues in Portugal (Accommodation)

Portuguese Tourism Revenues Market Share in Europe

Tourism Exports

2,5%2,3%

2013

+ 0,2 p.p.

2007

14% Weight on

Portuguese total exports

4% Growth since 2007

Tourism offer development


The "tourist journey" translates tourists' selection/acquisition process into 5 phases

"Tourist Journey" – how the Tourist acts along its selection / acquisition process

> Planning begins when tourists start to look for and compare alternatives adjusted to their needs

> Once the best alternative is identified the booking(s) and respective payment(s) begin

> Created expectations are realized in the travel experience

> The experience is than shared within a personal network, feeding the interest of other tourists

> Begins when the interest in travelling to a given destination is triggered

Dreaming 1

Experiencing 4

Planning 2

Booking 3

Sharing 5


Given the sector context it is possible to find business opportunities along the "tourist journey" in Portugal

"Tourist Journey" – type of business opportunities

1 4 2 3 5 Dreaming Experiencing Planning Booking Sharing

Marketing initiatives development a

Services to tourism sector players development d

Touristic assets and products development b

Services to tourists development c


Dreaming, planning and booking phases present opportunities associated to the development of marketing initiatives


Marketing initiatives development – examples of opportunities a

Destination Marketing Organizations

Main clients

Hotels / Airlines / Other transportation

Tour Operators / Travel Agencies

Key opportunities

Tourist knowledge software / tools

Public Relations initiatives

Digital marketing initiatives focused

on tourists

Marketing initiatives focused

on Tourism Operators

Innovative touristic products

Digital content development


Destination Management Organizations in Portugal have been increasing the focus on digital Marketing


Marketing initiatives development – increased investment digital Marketing a

Digital marketing

Opportunity to further sophisticate the online marketing approach

DMO site development Blogs and social media


The growth witnessed continues to require the development of touristic infrastructures – hotels, resorts,…


Main clients

Key opportunities

Hotels development

Wineries development

Resorts development

Restaurants development

Traditional products related

businesses

Entertainment establishments development

Touristic assets and products development – examples of opportunities b


Tourists

Online Specialized Operators


Portugal's touristic offer has been growing – but still has room to grow

Touristic assets and product development – tourism assets development b


Increasing offer

Increasing profitability

Increasing demand

Number of Rooms ['000 #]

RevPar1) [€]

Occupancy Rate Growth 2013-14

2014

137

2010

125

10%

28 33

2010

17%

2014

1) Revenues weighted by occupancy rate

3,4 p.p.


There is also the need to develop innovative solutions to enhance tourists' experience


Main clients

Key opportunities

Mobility services

Experience sharing

applications

"Trip planning" and "real time

agendas" services

E-commerce platforms

development

Innovative tour

development

Arts and events development


Tourists


Offer of services to tourists – examples of opportunities c


In the mobility services for instance, Lisbon witnessed a very successful introduction of the Tuk Tuk concept in 2012

Source: Press; Roland Berger

2012

4

?

Number of Tuk Tuks in Lisbon

2015 2017

>100

Companies Tuk Tuk Lisboa 12 Companies ?

Fuel Fossil Fuel Fossil Fuel & Electric 100% Electric

Offer of services to tourists – Example of Tuk Tuks in Lisbon c


Furthermore, there are several opportunities to develop tourist experience enhancing initiatives

Augmented reality

> Using the smartphone / tablet camera to identify key attractions in the surroundings

> Each key attraction has complementary information, as:

– History

– Architectural style

– Videos

– …

> Different languages audio-guides that can be listened to through the smartphone / tablet

> Improve the tourist experience in Lisbon – allowing for an interactive experience with monuments

– Augmented reality

– Tours with audio-visual information

– …

Concept Example

Offer of services to tourists – Example of innovative tours c



As other examples of tourist experience enhancing initiatives can be considered the development of real time agendas

Concept

> Agenda that allows user feeds, in order to guarantee real time updating

> Personalized agenda according to user preferences and location

> Possibility to share through social networks to reinforce engagement

> Availability of a "best kept secrets" concept – sharing of locals favorite spots

Offer of services to tourists – Example of real time agenda c



Tourism players will need business partners to help them reinforce their positioning


Main clients

Key opportunities

Specific software development

Interior design services

Web apps design

Equipment supply

Content development

General services (accounting; HR

temporary provision; laundry; cleaning)



Offer of services to tourism players – examples of opportunities d

Hotels / Restaurants / Others


All in all, tourism development will keep opening several opportunities for cooperation


> Local players to boost German demand

> German players to promote Portugal

Partnership development

Investment

Service provision

Type of business

opportunities > Greenfield or brownfield initiatives

> Testing platform for other markets

> Innovative solutions

> Products lacking supply

Tourism Development in Portugal - ccila- · PDF fileRoland Berger has been highly involved in...

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