Más contenido relacionado Similar a Growing tourism in cyprus (20) Growing tourism in cyprus2. INTRODUCTION
• Summary • Contents
• The old days aren’t coming back • Situation
• A new approach is needed • Opportunities
• That’s based on today’s market • Strategies
realities • Appendices
• This is an analysis of:
• The facts
• The opportunity
• What needs to happen
© Mike McCormac 2011
4. 10 YEARS OF DECLINING TOURIST
NUMBERS
• Actual tourist numbers to
3,000
Cyprus have fallen 33% 2,500
between 2000 and 20101
Numbers of visitors on holiday (,000)
2,000
• Worldwide tourism has
grown c.25% in the same 1,500
period2
1,000
• That means in market terms
Cyprus tourism has fallen 500
47% in the last ten years
0
© Mike McCormac 2011
5. 10 YEARS OF DECLINING TOURISM
REVENUE
• Actual tourist revenue in
2000
Cyprus has fallen 24%
between 2000 and 20101
1500
• In the same period inflation
Tourism Revenue (€m)
in Cyprus has been 30%1
1000
• That means in real terms
Cyprus tourist revenue has
500
fallen 44% in the last ten
years
0
© Mike McCormac 2011
6. PACKAGES DECLINE,
INDIVIDUAL TRAVEL GROWS
• In the period 2001 to 2010:
80%
• Package holidays declined from
70%
75% to 54% of the total 60%
• Individual travel grew from 25% 50%
Perentage of total
to 46% of the total
40%
30%
20%
10%
0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
© Mike McCormac 2011
7. DECLINE IN SELF PACKAGING
• Self packaging has peaked • Factors:
• Customers don’t have time • 30% increase in the importance
to organise it themselves of comfort
• 40% increase in the importance
• They want their holiday to of security (bonded tour
be easy operator)
• 40% increase in the importance
of destination knowledge
© Mike McCormac 2011
8. UK REMAINS THE PRIMARY SOURCE
• Between 2000 and 2010:
2000 2010
• UK visitors have declined from
UK 64% 58%
64% to 58%
Germany 11% 8%
• German visitors have declined Greece 5% 7%
from 11% to 8%
Switzerland 4% 2%
• Russian visitors have increased Norway 3% 4%
from 6% to 13% Russia 6% 13%
Sweden 6% 6%
France 2% 2%
© Mike McCormac 2011
9. PERCEPTIONS OF CYPRUS
• Negative • Positive
• Expensive • Weather
• Poor quality • Sea
• Downmarket • Countryside
• Rip off Cyprus • English speaking
• Untidy • Weddings
© Mike McCormac 2011
10. IMPACT OF SOCIAL MEDIA
• Quotes from Total Media Social Travel Report:
• “Almost 70% of consumers use the internet to book their holidays,
compared to 23% by phone and just 8% with travel agents”
• “Consumers aged 35-44 were found to be most likely (74%) to book online”
• “Price (80%) was cited as the main reason for using the internet along with
information (53%) and convenience (50%)”
• “Online reviews from the likes of TripAdvisor are now more influential than
brochures, advertising, travel supplements and agents”
• “People trust complete strangers over recommendations from the travel
industry”
• “The holiday industry is facing a social media revolution”
© Mike McCormac 2011
11. WORLD’S TOP 10 WEB SITES IN ORDER
• The web today is about • Google
social networking • Facebook
• Static websites are not good • YouTube
enough • Yahoo
• People browsing the web • Blogger
want to be involved • Baidu
• User reviews like Tripadvisor • Windows Live
are trusted more than • Wikipedia
commercial sites • Twitter
• QQ.com
© Mike McCormac 2011
12. WHY SOCIAL MEDIA CANNOT BE IGNORED
• Facebook
• More than 500 million users.
More popular than Google in
USA
• YouTube
• Over 500 million visits every
month. 92 billion page views
each month
• Twitter
• 200 million users. 110 million
tweets daily
© Mike McCormac 2011
13. IMPACT OF TRIPADVISOR
• One in three UK holidaymakers
use Tripadvisor for
information.
• Of those, one third change
their plans as a result
• Tripadvisor consistent Cyprus
themes:
• ‘Expensive’
• ‘Rip off’
• ‘Scams’
• ‘Ghost town’
© Mike McCormac 2011
14. IMPACT OF ALL INCLUSIVE
• Major tour operators
seeking to increase their
share of revenue
• Trend to all inclusive will
reduce revenue in Cyprus
and damage tertiary
businesses
© Mike McCormac 2011
15. WEDDINGS HAVE BEEN A SUCCESS STORY
• 1 in 4 UK couples now marry • Cyprus is in the top ten of
abroad destinations for UK
• 27% increase in British weddings abroad
couples marrying abroad • But indications are Cyprus’
between 2005 and 20102 share is slipping
• Up from 45,000 in 2005 to
just over 57,000 in 2010
© Mike McCormac 2011
16. CYPRUS TOURISM ORGANISATION
• Underfunded
• 20% budget reduction in 2011
• High costs
• High administration costs as a
percentage of budget
• Cost base growing
• Needs
• Budget growth
• Administration and operating
cost reduction
© Mike McCormac 2011
17. IMPLEMENTATION MATTERS
• Example – golf
• Why do Elea and Secret
Valley work?
• Focus on quality activity product
• Why do Secret Valley and
Minthis Hills/Tsada fail?
• Focus on property development
• Activity product secondary
© Mike McCormac 2011
18. CONCLUSIONS
• Radical action needs to be taken to reposition and promote the
Cyprus’ tourism product because:
• Today’s customers want more than sun, sea and sand
• Volumes and revenues will continue to decline
• Traditional packaged holidays will decline faster
• Despite optimism about Russia, the UK remains the primary market
• Cyprus’ current tourism product is expensive and sub-standard
• The internet is the primary means to research and book holidays
• ‘All inclusive’ will further damage local businesses
• Weddings have been a success story but quality needs to improve
• Independent travel is a growing opportunity
© Mike McCormac 2011
20. BACK TO BASICS
• What are Cyprus’ assets? • What are Cyprus’ liabilities?
• Weather • Perceptions:
• Sea • High cost
• Mountains • ‘Rip off’
• Long season • Down market
• Open access to countryside • Beaches not as good as
competing destinations
• Long flight
• Untidy
© Mike McCormac 2011
21. LENGTHEN THE SEASON
• Cyprus’ climate makes a long Visitors by Month (%)
season possible 16%
14%
• Shoulder months are a
12%
growth opportunity
10%
• March, April 8%
• October, November 6%
4%
2%
0%
Feb
Nov
Dec
Apr
Sep
Aug
Mar
May
Oct
Jul
Jun
Jan
2009 2010
© Mike McCormac 2011
22. FASTEST GROWING SECTORS
• Top five growth sectors.
Environmentally friendly
Three fit Cyprus’ strengths
• Environmentally friendly holiday
Adventure holiday
• Adventure holiday
• Nature and wildlife holiday Nature and wildlife holiday
• Discovery holiday
• Special interest holiday Discovery holiday
Special interest holiday
0% 100% 200% 300%
© Mike McCormac 2011
23. ADVENTURE HOLIDAYS
• The Adventure Travel Trade
Association defines
adventure travel as:
• Any tourist activity including
two of the following three
components:
• A physical activity
• A cultural exchange
• Interaction or engagement with
nature
© Mike McCormac 2011
24. ADVENTURE TRAVEL INCLUDES
• Special interest • Active adventure
• Culture • Mountaineering
• Nature • Off road cycling
• Wildlife – especially bird watching • Sailing
• Walking and hiking • Water sports
• Cycling • Diving
• Mind, body, spirit – and health • Off road driving
• Photography • Horse riding
• Wine/vineyard
• Pottery
© Mike McCormac 2011
25. UK OVERSEAS ADVENTURE TRAVEL
MARKET4
• Statistics • Largest operators
• 400,000 passengers a year • Tour operators take 50% of the
• £180m per annum market
• The Adventure Company (TUI)
• Forecast to grow 70% over next
three years • Explore
• Average spend increased 21% • Exodus (TUI)
from £987 in 2006 to £1,198 in • Geckos
2009 • Headwater
• …
© Mike McCormac 2011
26. WHO TAKES ADVENTURE HOLIDAYS?
• Demographic groups: • Typical customer profile:
• Younger people in the 16-34 age • Confident, well travelled
group consumers wanting more than
• Single professionals, especially sun, sea and sand
females • Demanding an authentic ‘off the
• Affluent active families beaten track’ experience
• Inquisitive 50+ males and • Active
females
© Mike McCormac 2011
27. CTO SPECIAL INTEREST TOURISM
INCLUDES…
• Rural tourism • Religious tourism
• Agrotourism • Nature tourism
• Nautical tourism • Nature trails
• Marinas, beaches, cruises • Sports tourism
• Casinos • Football, cycling, golf
• Cultural tourism • Health
• Cultural and artistic events • Conference and incentive
• Wine Routes • Weddings and honeymoons
© Mike McCormac 2011
28. EACH ACTIVITY IS A SMALL MARKET
OPPORTUNITY
• Some solutions • For example
• Group similar activities • A week’s activities including
• Run activities to a calendar mountain biking, climbing and
hiking
• A week’s activities staying in an
Agrotourism location and
exploring vineyards
© Mike McCormac 2011
29. SUMMARY OF OPPORTUNITIES
• Cyprus is potentially a year round destination – for the right
sort of holidays
• Cyprus can be positioned for:
• Adventure holidays
• Nature and wildlife holidays
• Special interest holidays
• The market for these opportunities is growing
© Mike McCormac 2011
31. TWO CORE STRATEGIES FOR CHANGE
• Communication
• Update communication and promotion channels to fully capitalise on the
internet/social media opportunity
• Focus on the growth adventure sectors
• Reposition from ‘Love Cyprus’ to ‘Fun Cyprus’
• Review the infrastructure
• Active promotion
© Mike McCormac 2011
32. PLUG THE HOLE IN THE ADVERTISING
BUCKET
• Customers believe social
media
• Advertising investment
is being negated by the
social media effect
• It’s like a big hole in the
bottom of the promotion
bucket
© Mike McCormac 2011
33. COMMUNICATION IS THE FIRST THING
TO CHANGE
• Communicate differently: • With better information:
• The target market is highly • Customers want lively, engaging
internet aware information
• Facebook • Create a virtual ‘try before you
• Twitter buy’ using:
• Forums • Videos
• Live chat • Google Earth
• Decrease conference spend, • Customer testimonials and
increase internet spend photos
© Mike McCormac 2011
34. ADVENTURE HOLIDAY REQUIREMENTS
• Access to the countryside or coastline
• Facilities for the activity
• Activity providers such as accredited activity operators,
outdoor education centres, schools and freelance instructors
• Accommodation catering for the needs of participants
• Simple, visible booking services for lessons, courses and taster
sessions
© Mike McCormac 2011
35. INFORMATION REQUIREMENTS
• The Internet is the primary source of information for adventure
activity takers
• Participants want pre-visit activity information
• Some people can be influenced by at-destination information on
local activity providers
• Sports governing bodies and associations are a key source of
information for participants
• Some activities will require pre-visit and at-destination information
including:
• Access and parking arrangements
• Equipment hire, repair and sales
• Times, charges, contact information
© Mike McCormac 2011
36. DESTINATION MANAGEMENT
OPPORTUNITIES
• Development of specific activity focussed marketing
• Coverage of adventure activities on websites with specific information
• Key marketing messages: trying out, learning, or pursuing an adventure
sport
• Encouraging and supporting the development of:
• Local networks of operators to provide a basis for networking and business referrals
• Collaborative marketing initiatives
• Promotion of environmental and quality messages to operators
• Business support and training into the sector
• Facilitating local adventure activities information services
• Creating local booking services for adventure activity courses and sessions
• Promotion of appropriate adventure sports events and competitions
© Mike McCormac 2011
37. ACCOMMODATION OPPORTUNITIES
• Development of activity specific accommodation
• Differentiation by providing activity specific facilities
• Providing local information
• Target individuals looking for activities in specialist magazines
• Develop working relationships with local activity operators
© Mike McCormac 2011
38. SUMMARY OF STRATEGIES REQUIRED
• Move the message from ‘sun’ to ‘sun and fun’
• Need a big focus on the internet –content and social media
• Analyse the special interest sub-sectors to get best fit between:
• Current volume
• Potential, growth
• Cyprus’ attributes
• Work on improving product quality in the target sub-sectors
© Mike McCormac 2011
39. ABOUT THE AUTHOR
• Mike McCormac is a sales
and marketing consultant
specialising in the travel and
tourism sector and living in
Cyprus.
• Contact Mike at:
• +357 99 860725
• mike.mccormac@hotmail.co.uk
• www.salessuccessandmore.com
© Mike McCormac 2011
41. SOURCES
• 1: Republic of Cyprus Statistical Service
• 2: Mintel
• 3: Total Media Social Travel Report
• 4: YouGov
© Mike McCormac 2011