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CBI Outbound Tourism Poland Baltic States Czech Republic Slovakia Tourism 2013

Jan 05, 2016

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Outbound tourism in Baltic States

  • Source: CBI Market Information Database URL: www.cbi.eu Contact: [email protected] www.cbi.eu/disclaimer

    CBI Product Fact Sheet: Outbound tourism from emerging Eastern EU countries

    Practical market insights into your product

    The Eastern EU market is an emerging market for outbound

    tourism which still has to reach maturity. Due to rapidly

    growing economies, an increasing number of Eastern EU

    travellers are travelling abroad. The Eastern EU market had

    the highest growth in outbound trips in 2012. Growth forecasts

    are also expected to be highest here. Opportunities for tourism

    providers from developing countries (DCs) are highest in

    Poland, the Baltic States, Czech Republic and Slovakia. As

    most of the travellers in these countries are first generation

    travellers and first generation travellers generally choose

    mainstream holidays, sun and beach holidays and round trips

    offer the best potential. Demand for niche products is still

    relatively small, but interest is expected to increase.

    Product Definition

    Emerging Eastern EU countries refer to EU countries that are located in the

    Eastern part of the EU market. In this study this includes the following

    countries: Estonia, Latvia, Lithuania, Poland, Czech Republic, Slovakia, Hungary,

    Romania, Bulgaria and Slovenia.

  • CBI Product Factsheet: Outbound tourism from emerging Eastern EU countries

    Source: CBI Market Information Database URL: www.cbi.eu Contact: [email protected] www.cbi.eu/disclaimer

    Figure 1: Emerging Eastern EU countries

    Source: Facts Figures Future

    The Eastern EU market is an emerging market for outbound travel which still

    has to reach maturity in comparison to the outbound markets of other major

    EU+EFTA markets. This is because people in the Eastern EU were not able to

    leave their countries for years due to political reasons, and did not have the

    financial means to do so. However, now that the borders are open and their

    economies and incomes are growing, they are increasingly travelling abroad.

    Trade and Macro-Economic Statistics

    Outbound statistics

    Figure 2: Growth of total outbound trips, European regions, 2010-2014, in %

    *Including Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania,

    Slovakia

    Source: European Travel Commission

    -4 -2 0 2 4 6 8 10

    Southern/Mediterranean

    Northern Europe

    Western Europe

    EU

    Eastern Europe*

    2010

    2011

    2012 estimate

    2013 forecast

    2014 forecast

  • CBI Product Factsheet: Outbound tourism from emerging Eastern EU countries

    Source: CBI Market Information Database URL: www.cbi.eu Contact: [email protected] www.cbi.eu/disclaimer

    Eastern EU region shows highest

    growth in outbound trips. According to research by the European Travel Commission, the Eastern EU region had the highest growth in outbound trips in 2012. Growth forecasts for 2013 and 2014 are also highest (Figure 2). This is particularly the result of the rapidly growing economies of Eastern EU markets. Eastern EU markets could, therefore, offer interesting opportunities for DC tourism providers. However, as they are all emerging markets with many travellers who are travelling abroad for the first time (first generation travellers), most long haul destinations are not very well known.

    3 promising clusters. In terms of

    opportunities, the Eastern EU tourism

    market can be divided into 3 most

    promising clusters:

    1. Poland: volume

    2. Baltics (Estonia, Latvia and

    Lithuania):

    strong growth in GDP and

    willingness to travel

    3. Czech Republic and Slovakia:

    high number of outbound trips per

    capita and increasing economies.

    The main focus in this Product Fact

    Sheet will, therefore, be on these 3

    clusters.

    Considerations for action

    Positive country branding is vital to

    increasing awareness of your

    destination among first generation

    travellers. However, you need both the

    public and the private sector.

    Therefore, join forces with other

    tourism stakeholders in your country

    and together invest in country

    branding campaigns.

    If you are already active in other

    EU+EFTA markets, you could duplicate

    the business model that you used

    there (provided that business model

    has proven to be successful). Always

    adapt your approach to the segment

    you are targeting.

    Do not view Eastern EU countries as a

    whole homogeneous entity. Despite

    some similarities, such as the level of

    market maturity and economic growth,

    there are also differences which you

    should take into account. Therefore.

    focus on one or two priority countries.

    Figure 3: Outbound trips, Eastern EU

    markets, 2007-2011, in millions

    Source: WTO

    Figure 4: Outbound trips per capita, Eastern

    EU markets, 2011

    Source: WTO

    Poland offers volume. Poland is by

    far the largest source market in the

    Considerations for action

    Approach Polish tour operators who

    already offer trips to your region, and

    0

    2

    4

    6

    8

    10

    12

    14

    16

    Million

    trip

    s 2007

    2008

    2009

    2010

    2011

    0

    0,2

    0,4

    0,6

    0,8

    1

    1,2

    1,4

    1,6

    Outbound trips

    per capita

    Trips to

    developing

    countries percapita

  • CBI Product Factsheet: Outbound tourism from emerging Eastern EU countries

    Source: CBI Market Information Database URL: www.cbi.eu Contact: [email protected] www.cbi.eu/disclaimer

    Eastern EU (Figure 3) and is, therefore, one of the most promising countries in that region. A strong decline in outbound trips in 2009 was the result of changes in the exchange rate of the Zloty/US Dollar, rising costs for fuel, and the purchase of modern aircrafts. Outbound trips are expected to increase as a result of maturing travel patterns, growing GDP and strong growth in international aviation capacity. The limited access to aeroplane seats in charters to DCs represents a threat to DC tourism providers, since the market is dominated by a few suppliers who make block bookings of charter allocations (TUI, Thomas Cook). However, scheduled flights by international airlines to and from Poland are growing. In February 2013, for example, the largest airline operator in the Middle East, Emirates, started scheduled services to Poland. This is benefitting Polish and other Eastern EU travellers with direct flights to Dubai and onward travel to Asia, Australia and Africa.

    Slovakia and Czech Republic have among the highest outbound trips

    per capita. Czech Republic is the second largest Eastern EU source market. Furthermore, Slovakia and the Czech Republic have, together with the Baltic States, the highest number of outbound trips per capita (Figure 4). They also have growing economies and good accessibility to scheduled flights, especially the Czech Republic. Although they tend to travel less to long haul destinations (Czech travellers especially go to Germany, Slovak travellers focus more on other Eastern countries), interest in new destinations is increasing and long haul travel is, therefore, expected to grow. Airlines in the Czech Republic, for example, are promoting undiscovered destinations and this provides opportunities for DCs.

    present your tourism product to them.

    Evaluate first generation Polish

    travellers in order to find out their

    interests and requirements and adjust

    your product to them.

    The increase in airlift is very important.

    However, you cannot do this alone.

    You need both the public and the

    private sector. Therefore, join forces

    with other tourism stakeholders in your

    country and together lobby airlines,

    tour operators and tourism

    organisations in order to increase the

    airlift. Together, also lobby your own

    government to liberalise international

    air services as this has been proven to

    increase international traffic

    significantly.

    Approach Czech and Slovak tour

    operators and present your tourism

    product to them.

    The promotion of your destination by

    Czech Airlines would be a good way to

    create awareness in the Czech

    Republic and in Slovakia. However, you

    cannot do this alone. You need both

    the public and the private sector and

    together you should lobby Czech

    airlines.

  • CBI Product Factsheet: Outbound tourism from emerging Eastern EU countries

    Source: CBI Market Information Database URL: www.cbi.eu Contact: [email protected] www.cbi.eu/disclaimer

    GDP and international tourism expenditure

    Figure 5: GDP growth, Eastern EU markets, 2010-

    2015*, real change in %

    *2013, 2014, 2015 forecast

    Source: Economic Intelligence Unit

    Figure 6: International tourism expenditure per

    capita, Eastern EU markets, 2011, in

    Source: WTO

    The Baltics have the highest GDP

    growth. Although Estonia, Latvia and

    Lithuania are small in terms of outbound

    tourism volume, they have the highest

    growth in GDP (Figure 5). People in the

    Baltics have relatively high and growing

    disposable incomes, and tend to spend more

    on international tourism than most other

    Eastern EU markets, especially Es