CBI Outbound Tourism Poland Baltic States Czech Republic Slovakia Tourism 2013

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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

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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

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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

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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