H OSPITALITY AND T OURISM A DVISORY S ERVICES e Introduction and Methodology The Ministry of Tourism Government of Israel November 2006 Quality in Everything.

HOSPITALITY AND TOURISM

ADVISORY SERVICES

e

Introduction and MethodologyThe Ministry of TourismGovernment of Israel

November 2006

Quality in Everything We Do

2Quality in Everything We Do e

1 Introduction

2 The Approach

3 The Methodology

Agenda


Introduction


IntroductionA Fully Integrated Team

Fully integrated advisory team; three groups representing the best in class in their respective fields

Unparalleled team in terms of:

Global presence and resources International and local knowledge International experience in tourism development and marketing Technical and process expertise Proprietary models and unique tourism databases Comprehensiveness of services offered Capacity to serve the world’s largest and most demanding clients


A Fully Integrated Team

The advisory team represents the best in class in their respective fields

Project management and infrastructure assessment

Policy, economic analysis and tracking & forecasting systems

Source markets and future marketing strategy

The Research Team


Ernst & Young, LLP – Project Leader

World’s largest professional services firm:

106,000 employees in 140 countries Global Real Estate, Hospitality and Construction practice with 3,500

employees in more than 25 countries serving more than 4,000 clients

The Hospitality and Tourism Advisory Services group:

Advisor to the leading organizations in the hospitality industry Knowledge leader in hospitality, tourism and leisure Extensive international experience Expertise in hospitality & tourism infrastructure development

The Research Team


The Research TeamErnst & Young, LLP – Hospitality & Tourism Advisory Services

Extensive international experience in:

Hotels Resorts Mixed-Use Developments Convention Centers Amusement Parks Sport Facilities Museums Other Leisure Real Estate


Track global travel demand by origin and destination

Monitor and forecast tourism for 163 country markets

Conduct market strategy, investment policy, and tourism economic development analysis for destinations around the world.

The Research TeamGlobal Insight – Travel & Tourism Advisory


World Travel & Tourism Council NYC and Company Intercontinental Hotels Group Kerzner International Hilton Hotels Abu Dhabi Tourism Authority Travel Industry Association of

America (TIA) US Office of Travel & Tourism

Industries Hong Kong Tourist Board Ontario Tourism Commission

Canadian Tourism Commission Singapore Tourism Board Visit Britain Dubai Tourism and Commerce

Marketing Various Resort Developers American Express Orlando CVB Irish Tourism Board Bahamas Ministry of Tourism Turkish Association of Travel

Agents

The Research TeamShort List of Global Insight Clients


The Research Team IPK International

Leading international tourism consulting groupSpecialist in tourism research and tourism marketing for 35 years

Network of institutes and tourism consultants in all European countries, North America, South America, Africa and Asia/Pacific

Highly skilled researchers and statisticians having vast experience in conducting quantitative and qualitative surveys around the globe

More than 1,000 tourism studies around the globe successfully completed

Owner of the World Travel Monitor®, the world’s most comprehensive tourism data bank on the European, Asian and American outbound travel behavior


The Research TeamIPK International

Public Sector Clients: Ministries, Tourist Boards, Other public organizations from more

than 40 countries worldwide

Private Sector Clients: Hotel Companies Airlines Tour Operators Theme Parks and Other Attractions Numerous other international clients


The Approach


Holistic and Results-Driven ApproachAnalysis and Practical Strategies

Development and Marketing StrategiesDevelopment and Marketing StrategiesDevelopment and Marketing StrategiesDevelopment and Marketing Strategies

SupplySupply- Hospitality & Tourism

Infrastructure- Aviation and Investment

Policy

SupplySupply- Hospitality & Tourism

Infrastructure- Aviation and Investment

Policy

DemandDemand- Source Markets:

Demographics, Attributes, Attitudes & Preferences

DemandDemand- Source Markets:

Demographics, Attributes, Attitudes & Preferences

Economic Impact and Return on InvestmentEconomic Impact and Return on InvestmentEconomic Impact and Return on InvestmentEconomic Impact and Return on Investment

A New Era of Tourism Growth for IsraelA New Era of Tourism Growth for IsraelA New Era of Tourism Growth for IsraelA New Era of Tourism Growth for Israel


Research in Fifteen Countries

Interviews with 104 tourism industry stakeholders in Israel

135 site inspections of tourism infrastructure

500,000 annual interviews for World Travel Monitor survey

Survey interviews with a total of 8,400 respondents in 8 countries

18 focus groups in 8 countries

51 interviews with international tour operators in 8 countries

The Primary Research


The main goal is…The main goal is…

To substantially grow inbound tourism To substantially grow inbound tourism and to establish tourism as a leading and to establish tourism as a leading

engine of growth for the Israeli engine of growth for the Israeli economyeconomy


The main obstacle…The main obstacle…

Perception versus RealityPerception versus Reality


Israel – Current Perception


Israel – Current Reality


The Methodology for the Research of the International Outbound Markets


Phase 1: Research of 17 International Key Markets based on IPK’s World Travel Monitor®

Phase 2: Further In-Depth Research of the 8 most promising Markets

Based on:- Qualitative Research Focus Groups- Quantitative Research Population Surveys- Trade Research Tour Operator Interviews

Phase 1: Research of 17 International Key Markets based on IPK’s World Travel Monitor®

Phase 2: Further In-Depth Research of the 8 most promising Markets

Based on:- Qualitative Research Focus Groups- Quantitative Research Population Surveys- Trade Research Tour Operator Interviews

MethodologyMethodology


Methodology of Phase 1Research of 17 International Key Markets

the most important international outbound markets worldwide the most important markets for Israel at present markets having a high share of Jewish populationand worldwide coverage: Europe (West and East) America, Asia

the most important international outbound markets worldwide the most important markets for Israel at present markets having a high share of Jewish populationand worldwide coverage: Europe (West and East) America, Asia

The selection of the 17 outbound key markets was made accordingto the following criteria:

Consideration of

The selection of the 17 outbound key markets was made accordingto the following criteria:

Consideration of


America

USA

Canada

Western-Europe

UK

Germany

France

Italy

The Nordic Countries

The Netherlands

Switzerland

Eastern-Europe

Russia

Poland

Hungary

Asia

China

India

Fulfilling these criteria, the following 17 int’l markets were selected (in accordance with the Tourism Ministry)

These 17 markets represent

60% of all outbound trips worldwide 75% of the outbound trips to Israel 90% of the Jews living in Diaspora

These 17 markets represent

60% of all outbound trips worldwide 75% of the outbound trips to Israel 90% of the Jews living in Diaspora


The 17 Int’l Key Markets were surveyed / analyzed regarding:

the general outbound travel behavior

the travel behavior to Israel

and as a benchmark

the travel to the most important competitors (Turkey, Greece, Italy, Egypt)

Method and Database:

IPK’s World Travel Monitor®

The 17 Int’l Key Markets were surveyed / analyzed regarding:

the general outbound travel behavior

the travel behavior to Israel

and as a benchmark

the travel to the most important competitors (Turkey, Greece, Italy, Egypt)

Method and Database:

IPK’s World Travel Monitor®


World Travel Monitor® Facts

The World Travel Monitor® is

an annual study surveying the outbound travel volume and travel behavior in all European and all important American and Asian countries, since 1988

representative of the population in each country

interviewing more than 500,000 consumers per year(15 years and older)

carried out via telephone interviews (CATI system)

applying the same questionnaire / method in all countries


an annual study surveying the outbound travel volume and travel behavior in all European and all important American and Asian countries, since 1988

representative of the population in each country

interviewing more than 500,000 consumers per year(15 years and older)

carried out via telephone interviews (CATI system)

applying the same questionnaire / method in all countries


World Travel Monitor® Facts


the sole and largest tourism information databank worldwide

providing comparable tourism data on European, American and Asian outbound travel behavior

Clients from the public and private sector are, among others:- The European Travel Commission (ETC) - The UNWTO- Numerous tourism destinations worldwide (Spain, Greece, Italy, Mexico, Brazil, etc.)- Tour operators (TUI, Thomas Cook, Kuoni, etc.)- Consultancies (McKinsey, Boston Consulting, etc.)


the sole and largest tourism information databank worldwide

providing comparable tourism data on European, American and Asian outbound travel behavior

Clients from the public and private sector are, among others:- The European Travel Commission (ETC) - The UNWTO- Numerous tourism destinations worldwide (Spain, Greece, Italy, Mexico, Brazil, etc.)- Tour operators (TUI, Thomas Cook, Kuoni, etc.)- Consultancies (McKinsey, Boston Consulting, etc.)


Methodology of Phase 2In-Depth Research of the 8 Most Promising Key Markets

8 markets offering the best opportunities for Israel were identified out of the 17 international Key Markets

Criteria for the selection (among others): Size of the market / market prospects Affinity towards Southeast Mediterranean destinations / Israel Affinity towards specific products / holiday types Religious affiliation Spending behavior / share of high spenders etc.

8 markets offering the best opportunities for Israel were identified out of the 17 international Key Markets

Criteria for the selection (among others): Size of the market / market prospects Affinity towards Southeast Mediterranean destinations / Israel Affinity towards specific products / holiday types Religious affiliation Spending behavior / share of high spenders etc.


America

US

Western-Europe

UK

Germany

France

Italy

Sweden

Eastern-Europe

Russia

Asia

China

Based on these Criteria the selected 8 Markets were:


In-Depth Research Program for each of these 8 Markets

1. Qualitative Research

2 Focus Groups per country

In the US and UK 3 Focus Groups each

1. Qualitative Research

2 Focus Groups per country

In the US and UK 3 Focus Groups each

based on 18 Focus Groupsbased on 18 Focus Groups


Method of Focus Groups

Per group 8-10 participants (consumers)

Men and women (approx. 50% each)

Different age groups (25-65 years old)

Middle and higher education and income classes

Religious affiliation (except for China):2-3 participants practicing Christians / Evangelicalsat least one representative of the Jewish population

Per group 8-10 participants (consumers)

Men and women (approx. 50% each)

Different age groups (25-65 years old)

Middle and higher education and income classes

Religious affiliation (except for China):2-3 participants practicing Christians / Evangelicalsat least one representative of the Jewish population


Method of Focus Groups

All participants with travel experience to the Southeast Mediterranean (especially Egypt, Greece, Turkey)

All participants interested in a trip to Israel / at least 2–3 persons with travel experience to Israel

Selection / identification of participants:

in the scope of pre-screening / pre-interviews

All participants with travel experience to the Southeast Mediterranean (especially Egypt, Greece, Turkey)

All participants interested in a trip to Israel / at least 2–3 persons with travel experience to Israel

Selection / identification of participants:

in the scope of pre-screening / pre-interviews


Conduction of Focus Groups

The Focus Groups were conducted by institutes specialized in qualitative research (ICC/ESOMAR members) in the individual countries (under the guidance of IPK)

Each Group was guided and analyzed by an expert / psychologist specialized in qualitative research

All Focus Groups were conducted according to a guideline of topics

The Focus Groups were conducted by institutes specialized in qualitative research (ICC/ESOMAR members) in the individual countries (under the guidance of IPK)

Each Group was guided and analyzed by an expert / psychologist specialized in qualitative research

All Focus Groups were conducted according to a guideline of topics


Focus Group Tasks

Determination of topics such as

awareness / perception of Israel factors of attraction factors of rejection assessment of the different products / offers / holiday types strengths / weaknesses of the offer expectations towards the product comparison with other destinations / competitors etc.

as well as a test of TV commercials

Determination of topics such as

awareness / perception of Israel factors of attraction factors of rejection assessment of the different products / offers / holiday types strengths / weaknesses of the offer expectations towards the product comparison with other destinations / competitors etc.

as well as a test of TV commercials


2. Quantitative Research

in each of the 8 markets

2. Quantitative Research

in each of the 8 markets

based on surveys “representative of the population”based on surveys “representative of the population”

In-Depth Research Program for the 8 Top Markets


Sample of the Population Survey

Only persons with outbound tourism experience last 5 years and / or intention next 5 years.

Sub-sample of Jewish / religious people, respectively Evangelicals (depending on the countries’ predominant religious group)

Only persons with outbound tourism experience last 5 years and / or intention next 5 years.

Sub-sample of Jewish / religious people, respectively Evangelicals (depending on the countries’ predominant religious group)

The sample (in each of the 8 countries) was determined by a pre-screening.

The appropriate pre-screening questions were asked in a sample being representative of the population (according sex, age, regional distribution, etc.).

The sample (in each of the 8 countries) was determined by a pre-screening.

The appropriate pre-screening questions were asked in a sample being representative of the population (according sex, age, regional distribution, etc.).


Population Surveys

At least 1,000 interviews per market

Telephone interviews (CATI method: Computer Assisted Telephone Interviews) in all markets

Random selection of the interviewees

Partner institutes of IPK, specialized in quantitative population surveys in the respective countries

All institutes following ICC / ESOMAR standards / codex

At least 1,000 interviews per market

Telephone interviews (CATI method: Computer Assisted Telephone Interviews) in all markets

Random selection of the interviewees

Partner institutes of IPK, specialized in quantitative population surveys in the respective countries

All institutes following ICC / ESOMAR standards / codex


Task of the Population Survey

image of Israel future interest potential for Israel interest in different holiday products factors of attraction / motives of Israel relevance of religious motives price image travel season accommodation preference booking preference future target groups

image of Israel future interest potential for Israel interest in different holiday products factors of attraction / motives of Israel relevance of religious motives price image travel season accommodation preference booking preference future target groups

Specific questions with regard to Israel were asked, such asSpecific questions with regard to Israel were asked, such as


3. Trade Research

In total for all 8 markets

Per market 5 – 8 interviews

3. Trade Research

In total for all 8 markets

Per market 5 – 8 interviews

In-Depth Research Program for the Top 8 Markets

based on 51 Tour Operator Interviewsbased on 51 Tour Operator Interviews


Method of the Trade Research

51 Tour Operators in total

Europe: 37 / USA: 9 / China: 5

51 Tour Operators in total

Europe: 37 / USA: 9 / China: 5

In accordance with the client, important Tour Operators offering / not offering Israel were chosen for each market:In accordance with the client, important Tour Operators offering / not offering Israel were chosen for each market:

30 Tour Operators “offering” Israel

30 Tour Operators “offering” Israel

21 Tour Operators “not offering” Israel21 Tour Operators “not offering” Israel


The Tour Operator Interviews were conducted

via telephone

with senior managers responsible for Israel / the Southeast Mediterranean

with the help of a guideline / questionnaire

via telephone

with senior managers responsible for Israel / the Southeast Mediterranean

with the help of a guideline / questionnaire


Task of the Tour Operator Survey

image of Israel in the tour operator’s view

strengths / weaknesses of Israel

positioning of Israel vs. competitor destinations

interest in including / extending the Israel offer

expectation regarding sales support

aviation and lodging

etc.

image of Israel in the tour operator’s view

strengths / weaknesses of Israel

positioning of Israel vs. competitor destinations

interest in including / extending the Israel offer

expectation regarding sales support

aviation and lodging

etc.

Determination of topics such asDetermination of topics such as


Method & Data Pool for the International Markets

All in all

a very comprehensive data pool

with a high validity and reliability

allowing the development of secured marketing strategies

for Israel in the international markets

All in all

a very comprehensive data pool

with a high validity and reliability

allowing the development of secured marketing strategies

for Israel in the international markets


H OSPITALITY AND T OURISM A DVISORY S ERVICES e Introduction and Methodology The Ministry of Tourism Government of Israel November 2006 Quality in Everything.

Documents

tourism research

tourism marketing

tourism development

tourism consultants

forecast tourism

research team slide

integrated team

introduction slide