“Trends and Opportunities”

4th Annual Statia Sustainable Conference

September 24th,2015

Question

• What do these trends mean to us and how can we take advantage of them to build a more competitive, relevant and innovative industry?

Imperative: Strategic planning ,close scrutiny and

adapting of relevant and emerging trends!

Agenda

• Global Perspective on Tourism • List of Key Trends • Assessment of each Trend and how we can convert to

Opportunities

Global Perspective on Tourism

• Ever-increasing number of destinations

• Experienced continued expansion and diversification to become one of the fastest growing economic sectors.

• Shown virtuallyuninterrupted growth

Tourism in the World: Key Figures

9% of GDP

1 in 11 Job

US$

1.4 Trillion in Exports 6 %

Of worlds Exports

From25 MILLION

INTERNATIONAL TOURISTS

1950

To 1087 MILLION

INTERNATIONAL TOURISTS

2013

1.8 Billion

International Tourists

Forcast for 2030

5-6 Billion

Domestic tourists

Caribbean Tourism

• Most tourism dependent economy • Majority of tourism arrivals were concentrated in the following 7

markets: DR, Puerto Rico, Cuba, Bahamas, Aruba, Jamaica and Barbados

• Performance has declined since the mid 1990’s due to increased competition from new markets and underinvestment.

7 Key Trends in T & T put your great subtitle here

01 02 03 04 05 06

Increased Competition

The New ‘Traveller’

Emerging Economies

Demographic Shifts

Technology Continued Growth in

Responsible Tourism

07

Safety & Security Concerns

Other Industry Changes

ᾫ

0078

Increased Competition

• International arrivals have risen from 25 million in 1950 to 1.1 billion in 2014 and expected to grow to 1.8 billion in 2030.

• Over 180 tourism destinations around the globe. • Over a 100 is receiving over a million arrivals • 6 of these are Caribbean islands ( Aruba, DR, Jamaica, Cuba, The

Bahamas, PR)

Increased Competition: What can we do?

• Diversification of its main source markets whilst being more strategic in traditional markets

• Local initiatives and entrepreneurship • Increasing intra-regional travel • Identifying your USP and celebrating your authenticity

Emerging Economies: What can we do?

• Opportunities for islands to penetrate new consumers • Revitalize our diverse characteristics , proximity to Latin and Central

America markets, diversity of its product to provide travel inspiration to attract new consumers from emerging and advanced markets

• Growth of EEs will create opportunities to attract new visitors to region

Growing Middle Class: What can we do?

• Understand changing demographics and non traditional markets’ consumer behavior to develop a clear USP.

• Participate in US multi-destination itineraries targeting Brazilians, Asians etc. to raise awareness.

The “New Traveler”

• Driven by scientific, social, emotional and spiritual influences • Knowledgeable, experienced, technologically savvy, harder to please,

socially conscious, participators not spectators and looking for experiences.

• Focus on service excellence, personalized, experience, good value for money

• Unique and memorable experiences which offer experiential, cultural and educational themes.

The “New Traveler” : What can we do?

• Product Differentiation and Personalization • New Technologies, innovative marketing programs, empowerment of

staff • Quality Improvement, service excellence across all categories • Broaden base of product offerings • Effective use of data

Global demographic Shifts (GDS)

• Shapes the age, origin and behavior of tomorrow’s tourists • Aging populations, living longer with higher disposable income • Multiple trips due to work pressure • Change to family structures • Power of the Millennial (1977-2000)

GDS: What can we do?

• Ensure right product mix is available and effectively marketed based on research

• Develop varied attractions and activities that cater to diverse age groups

• Focus on having diverse culinary, health and wellness, adventure offerings

Sustainable and Responsible Tourism

• Sustainability as a priority area • Green Travel is a new normal • Consumer Education and Awareness • Energy Efficient Practices, Use of environmentally friendly materials

and technology

Sustainable Tourism: What can we do?

• Establish sustainable niche products like community tourism, cultural heritage tourism, agro-tourism that will involve local communities to provide memorable experiences.

• Promotion of cultural industries : our food, music, art, heritage etc. • Utilize storytelling as a driver of powerful change: Powerful stories of

history, culture, values, beliefs etc.

Terrorism, Safety and Health

• Industry has become highly susceptible to natural, man-made and health crises

• Culture of Fear exists • High Quality healthcare systems have become a crucial determinant

in destination choice

Terrorism, Safety and Health: What can we do?

Safety and Security for Visitors and Locals Promote Sexual Awareness Health Controls at Ports Benchmark best practices for gun and drug trafficking

Technology

• Prominence of the internet, online travel, mobile technology and social media influence travel decisions

• Tech innovation in aviation, immigration and travel purchase has transformed the tourism sector

• More reliant on technology across phases of the travel cycle (from search to post trip)

Technology: What can we do?

• A multi-channel strategy to capture demand especially from consumers in emerging markets

• Ensure that online customer experience is seamless and personable • Keep abreast of trends : global online booking , OTA’s, Mobile Web,

Online rental (Airbnb),

Other Changes within the Industry • Sharing and Renting • Mergers and Acquisitions • The Millennial War

Highlights

• Global Tourism is growing • Competition is Fierce • Pay attention to trends and relevant data • Customer experience is the future • Anticipate consumer needs • Take into account your unique and diverse characteristics to attract

new consumers and entice repeat visitors

Highlights cont’d

• Create distinctive experiences with clear USP • Deliver using mechanisms to make experience personal for target

audience • Education and training: Attract the brightest, industry certification

&training , public education • Strategic Partnerships : That’s Key!

THE CORE

• THE CUSTOMER EXPERIENCE in order to WIN THE BATTLE for LOYALTY

• It decides IFsomeone RETURNS as they GROW more aware, become more TECHNOLOGICALLY SAVY, become more CHOICE-CONSCIOUS.

• Suppliers and Intermediaries MUST OWN the CUSTOMER RELATIONSHIP, CREATE DISTINCTIVE EXPERIENCES tailored to each target audience.