Portuguese German Symposium Lisbon, 20 th October 2015 Tourism Development in Portugal: Business Opportunities for German Companies
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
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
4 LIS-9970-90000-019-83_Apresentação na CCILA_Oct 2015.pptx
2014
Lisbon
Madeira
Porto
Algarve
2014
Portuguese tourism sector is highly dynamic, with a strong recognition worldwide
Source: Press; Roland Berger
5 LIS-9970-90000-019-83_Apresentação na CCILA_Oct 2015.pptx
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
6 LIS-9970-90000-019-83_Apresentação na CCILA_Oct 2015.pptx
Germany has a significant relevance for Portugal as a source market and continues with a strong growth
Source: Turismo de Portugal; Roland Berger
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
7 LIS-9970-90000-019-83_Apresentação na CCILA_Oct 2015.pptx
What is behind the success? - Portugal stands out with a set of differentiation factors supporting future development
Source: Roland Berger
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
8 LIS-9970-90000-019-83_Apresentação na CCILA_Oct 2015.pptx
Tourism development fueled a strong growth on touristic offers and its contribution to overall economy
Source: Turismo de Portugal; Roland Berger
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
9 LIS-9970-90000-019-83_Apresentação na CCILA_Oct 2015.pptx Source: Roland Berger
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
10 LIS-9970-90000-019-83_Apresentação na CCILA_Oct 2015.pptx Source: Roland Berger
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
11 LIS-9970-90000-019-83_Apresentação na CCILA_Oct 2015.pptx
Dreaming, planning and booking phases present opportunities associated to the development of marketing initiatives
Source: Roland Berger
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
12 LIS-9970-90000-019-83_Apresentação na CCILA_Oct 2015.pptx
Destination Management Organizations in Portugal have been increasing the focus on digital Marketing
Source: Turismo de Portugal; Roland Berger
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
13 LIS-9970-90000-019-83_Apresentação na CCILA_Oct 2015.pptx
The growth witnessed continues to require the development of touristic infrastructures – hotels, resorts,…
Source: Roland Berger
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
Tour Operators / Travel Agencies
Tourists
Online Specialized Operators
14 LIS-9970-90000-019-83_Apresentação na CCILA_Oct 2015.pptx
Portugal's touristic offer has been growing – but still has room to grow
Touristic assets and product development – tourism assets development b
Source: Turismo de Portugal; Roland Berger
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.
15 LIS-9970-90000-019-83_Apresentação na CCILA_Oct 2015.pptx
There is also the need to develop innovative solutions to enhance tourists' experience
Source: Roland Berger
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
Tour Operators / Travel Agencies
Tourists
Online Specialized Operators
Offer of services to tourists – examples of opportunities c
16 LIS-9970-90000-019-83_Apresentação na CCILA_Oct 2015.pptx
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
17 LIS-9970-90000-019-83_Apresentação na CCILA_Oct 2015.pptx
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
Source: Roland Berger
18 LIS-9970-90000-019-83_Apresentação na CCILA_Oct 2015.pptx
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
Source: Roland Berger
19 LIS-9970-90000-019-83_Apresentação na CCILA_Oct 2015.pptx
Tourism players will need business partners to help them reinforce their positioning
Source: Roland Berger
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)
Tour Operators / Travel Agencies
Online Specialized Operators
Offer of services to tourism players – examples of opportunities d
Hotels / Restaurants / Others
20 LIS-9970-90000-019-83_Apresentação na CCILA_Oct 2015.pptx
All in all, tourism development will keep opening several opportunities for cooperation
Source: Roland Berger
> 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