THE ALPS – ADRIA TOURISM SPIRIT AND SMART TOURISM
From Sustain…agility, Bipolarity, Stock up on life, Flex Living and the Proximity Locus to Wellpitals, Eco-fit Resorts, Dreamscapes and Hol-Life Retreats
Professor Luiz MoutinhoFoundation Chair of MarketingUniversity of Glasgow,Scotland.
TOURISM TRENDS – 10 general trends in tourism
Trend 1: Changing demography
Trend 2: Mega trend Health
Trend 3: Increasing Awareness & Education
Trend 4: Less leisure time
Trend 5: Increasing travel experience
Trend 6: Changing lifestyles
Trend 7: New information technology
Trend 8: Changing transport behaviour
Trend 9: Rising importance of sustainability
Trend 10: Increasing importance on safety and security
TRENDS IN LUXURY
A bipolar luxury market
Following a post-crisis period during which there was some overlap between certain elements of luxury and the mass market, we are now seeing differentiation of ultra-luxury from affordable luxury. While supply was geared for a while towards the middle classes, there is now a re-direction to meet the resilient demand by the super-wealthy.
CHINA
Another important trend is the increasing demand from the BRIC countries, especially from China. By 2020, we expect to see 100 million outbound tourists from China. The Chinese market is considered the key driver of global luxury, with an estimated 250 million Chinese now able to afford luxury products. (Interestingly, The Wall Street Journal recently reported that the number of millionaire households in the world grew by 12.2% in 2010 to 12.5 million. The U.S. continues to lead the world in millionaires, with 5.2 million millionaire households, followed by Japan with 1.5 million millionaire households, China with 1.1 million and the U.K. with 570,000. Global wealth reportedly grew by US$9 trillion, or 8%, to $121.8 trillion last year, slowing from the pace set in 2009 when markets snapped back 10%.)
SMART TOURISM
Europe 2020 Strategy Customer/Market Innovation
Customer / Market Innovation Product Innovation
Resource Innovation Process Innovation
EU POLICY
• Respecting Natural Assets for Economic Potential
• Transforming Local Products into Touristic Assets. Loco over Local. Locazens. Locavores.
• Preserving the Natural Integrity
ALPS – ADRIA area as a tourism destination
Alps – Adriatic Spirit
Alps – Adriatic – a global brand
To maintain Europe’s leading position amongst tourist destinations and that tourism is also leading industry in Europe, comprising 5.2% of the workforce and in general more than 5% of the GDP, and moreover app. 1.8 million small and medium enterprises are integrated in the tourism industry.
Europe has 52% of the global market with 535 million foreign tourists in the year 2012.
How can we continuously improve the competitiveness of European tourism?
The following are indispensible:
• Product expansion
• Improvement of quality
• Increase of professional know-how
• Improvement and better use of existing tourist infrastructure
• Planned measures
• Further increase of information on a European level
• Support of sustainable and responsible tourism
• More intensive promotion of Europe in third country markets
• Development of innovative projects in the tourism industry
We live in a time of up-to-date, ever changing technology, which affects all areas of human life and creates a complex network between economy and media that requires constant interdisciplinary cooperation and adaptation.
A key factor is cultural openness throughout the Alps-Adriatic area. The guest no longer sees a blocked border, but rather a cross-border cultural zone and interplay between various influences of the last centuries.
TRAVEL AND TOURISM IN AUSTRIA
More frequent travel but shorter holidays
One strong trend in Austria was the move towards shorter holidays, either spent in a domestic destination or comprising a long week-end city trip. “Mini-weeks” (3 day getaways) grew in popularity at the expense of longer skiing trips. Another popular short trip option was to visit one of the many spa and wellness resorts for respite or treatment.
Record year for MICE
In 2012, Austria strengthened its position as one of the leading MICE venues in Europe. In 2012, Vienna was confirmed, for the seventh time in a row, as the number one conference city by the International Congress and Convention Association (ICCA).
Austrians warm to staycation
Rising interest in local cuisine and healthy lifestyles boosted domestic tourism, as many Austrian cherish regionally grown, and increasingly organic products.
Record year for city tourism
In 2012, travel and tourism in Austria profited from a pronounced trend for city travel, which produced record numbers of visitors to its major cities.
The internet is expected to shape growth within travel and tourism.
Key economics risks for Austria still loom on the horizon. While traditional retailing formats are set to register only moderate value sales growth, it seems clear that internet retailing is expected to continue to grown strongly to support the overall performance of travel and tourism. As such, travel and tourism is projected to post positive constant value growth.
Tourism Austria and Europe
Costal and mountain tourism are the segments that are most vulnerable to climate change. A forecast of international tourist arrivals in Europe for 2030 expects an average annual growth of 2.4% between 2005 and 2015 and 2.3% between 2015 and 2030.
The direct contribution of the tourism industry to Austrian GDP is 4.9%, with indirect effects it increase to 15.4%. For Austria, an average annual growth rate of international tourist arrivals is expected of 1.5% between 2005 and 2015 and 1.0% between 2015 and 2030.
Vulnerabilities
There are four broad categories of climate change impacts that will affect tourism destinations, their competitiveness and sustainability.
• Direct climate impacts
• Indirect environmental change impacts. Changes in water availability, biodiversity loss, reduced landscape aesthetic, altered agricultural production (e.g., wine tourism), and coastal erosion.
• Impacts of mitigation policies on tourist mobility. Policies that seek to reduce GHG emissions will lead to an increase in transport costs and may foster environmental attitudes that lead tourists to change their travel patterns.
• Indirect societal change impacts. Climate change is thought to pose a risk to future economic growth and to the political stability of some nations.
Due to changing conditions, the overall number of lifts in the Alps is slightly decreasing and in areas at low altitudes ski-resorts are already closed or will be closed in the near future.
It is estimated that the snowline, as well as the line of natural snow-reliability, will rise by 150 m with 1ºC warming. On the basis, climate change could result in a 150 m, 300 m and 600 m increase in the altitude of natural snow reliability for 1, 2 and 4ºC of warming.
A 2ºC warming with no precipitation change would reduce the seasonal snow cover at a Swiss Alpine site by 50 days/yr, and with a 50% increase in precipitation by 30 days.
Due to the expected negative effects on winter tourism, the Austrian tourism industry will be one of the overall losers from climate change.
At the moment, there is reliable snow at altitudes above about 1,200 metres. This critical boundary could increase to 1,500 m by 2030.
The Alps
Under present climate conditions, 609 out of the 666 (or 91%) Alpine ski areas in Austria, France, Germany, Italy and Switzerland can be considered as naturally snow-reliable. The number of naturally snow-reliable areas would drop to 500 under 1ºC, to 404 under 2ºC and to 202 under a 4ºC warming of climate.
In Austria, demographic changes will have a higher impact on skiing tourism than climate change in the first half of the twenty-first century, while change could be the more dominant driving force towards the end of the century. Demographic changes include population declines in source countries, and a trend to ageing populations.
Adaptation Strategies – in general
Climate change is slowly entering into decision-making of a range of tourism stakeholders (e.g. investors, insurance companies, tourism enterprises, governments, and tourists); studies that have examined the climate change risk appraisal of local officials and operators have consistently found relatively low levels of concern and little evidence of long-term strategic planning in anticipation of future changes in climate.
Adaptation Strategies – Austria
Climate change is already affecting the strategies and plans of the winter sport resorts today. Artificial snow-making remains the dominant adaptation strategy. Ski season simulations show that snowmaking technology can maintain snow-reliable conditions in Austria until the 2040s to the 2050s, but by the end of the century the required production in snow volume is projected to increase by up to 330%.
It is more likely that demand for skiing tourism may decline seriously in the upcoming decades than that current demand could be maintained or even increased. Thus, current trends on the supply side e.g. further extensions of ski areas and increases in transport or accommodation capacity, might not be financially viable.
The Future of Winter Tourism
Not even one third of those who travel abroad each year, do so in the winter. Of those only 12% go for a vacation in the snow. Nevertheless Austria remains one of the most popular winter holiday destinations in Europe.
Four scenarios were developed for the future of winter tourism in Austria.
• Heaven and Hell: This scenario is based on the anticipated future income gap. There will be a first class tourism segment on the one hand with all-inclusive low price packages on the other.
• Good Bye Snow! These are affordable only by high end clients. The need for a ‘snow experience’ slowly fades in people’s minds. Instead artificial snow in huge ski domes with typical Austrian features provides the only substitute.
• Ecological Winter Breaks: An increase in so called eco-taxes. High fuel prices lead to a preference for holidays in the neighbour countries rather than in far away places. Austria's geographically central position and its advanced position in ecologically sound tourism is well matched to existing demand.
• Ski, Snow & More: Clients like to mix skiing with extra features such as show and concert events.
The Summer Challenge
For the Europeans, vacations in the countryside or in the mountains account for about 6% of all holiday travel.
The Real Austria
The development of such a market is supported by a strong demand for authenticity or experience and for natural products. ‘Nature’ however is in relatively short supply and people are willing to pay a high price for last surrender-spots of authentic nature in ‘Good Old Europe’.
• Mountain Experience
• Lonely Mountain
• Sea or Lake: The high water-quality of Austrian lakes
• Stock up on Life: Austria is a leading wellness resort destination.
• Flex Living: The city as a virtual reality show, where everything happens just in time. Technology supports and enables the new fast-and-flexible lifestyle of the future city tourist-with-no-time.
A New Vision of Living
The main goal for people in the new millennium is to prevent illness and to avoid the need for recovery. It is not enough anymore to reach a significant age. Fitness of the mind and overall well-being in terms of the overall quality of one’s health is a crucial personal goal.
What Does this Mean for the Future?
Services provided must follow a holistic approach. This may means considering ‘new wave’ treatments. The tourist experience will be based around facilities such as well-being oases, competence centres or hotels as well as multi-option health resorts.
The ‘City Escape’ scenario for city tourism, societies’ requires the availability of individualised hotels and above all 24 hour service in retail and gastronomy.
The ‘Experience City’. Tourist ‘competence’ is a key issue. Handicrafts and trade have to be recreated in a historic setting while addressing the new needs of the time. Beside, the creation of new niche products price optimisation will be very important.
In the case of ‘Real Austria – Demand for Real Nature’, Austria’s authentic creditability must be established or increased . Local and regional service cards combined with continuous service chains and a variety of events with regional identity can match tourists’ need for flexibility.
Responding to New Social Drivers
Essential social drivers such individualisation, flexibility and the aging of society will fundamentally change social relations. Patchwork-families, single households, serial partnerships and jobs will replace traditional structures and change how people holiday, with whom and when. So called flex-jobs and project orientated engagements will replace traditional full time jobs. The average age of retirement will be 70. All of this will affects the ‘new customer’ in the ageing Europe of 2015.
One out of four customers will be above 60 and seniors will be among the most affluent clients.
The middle class will slowly disappear and the in the hyper flexible, digital, networked economy, hybrid products will be designed. Discount will meet the premium class and the gap between those with ‘lots of time and little money’ and the ones with ‘no time and lots of money’ will get bigger.
Products and services will melt together. Product diversity will be crucial.
SLOVENIA – TRSE
When the small ones join together, they become great.
• Strengthening of the Alpe-Adria trademark
• Possibility of connections among tourist service providers in the Alps-Adriatic region and thus also an opportunity for joint promotion of the region within it and outside of it
• Segmented offer by destinations, which facilitates the presentations of offers of macro as well as micro destinations
Slovenian tourism – the industry accounts for 12.3% of the GDP. 1.6 million tourists. 10% growth rate.
Tourist Tribes
The “Traveller tribe”
• The “holiday tribe”
• The “excursion tribe”
• The “active tribe” will
The Proximity Locus
• Contextual Proximity
• Local Proximity
• Physical Proximity
• Digital Proximity
Sharing Local Knowledge
Green Tourism Trends
How can we align a desire to see the world alongside a conscience that calls for the education in our everyday carbon emissions?
1. Trend: Travel for a reason
The arrival of budget airlines a few years ago changed tourism for many people into a rush from destination to destination, and into ticking off a checklist of specific experiences and sites.
So the question should be “Why do you want to go?” of “How would you like to spend your holidays?” Today there is increasing emphasis on what you want, expect and need from holidays – and how you can give back to the destination and people who live there for your experience.
At this time “why” and “how” will become much more important. Travel in the future will therefore have a greater, more profound meaning – and not just for us, but also for destinations and the people who live there.
This kind of travel will be called”Profound Travel”.
Today we are seeking authenticity and real experiences. Increasingly it will involve a respect to the local identity, its special features, things that make a destination different and special. This could be the aroma of fresh spices in Kerala in India or blueberries in a Slovenian forest.
2. Trend: Local
• Travel in the future will be geo-local. This means that people will travel much closer to their home.
• Tourism will no longer be controlled by “Westerners”.
• In the future the majority of hotels will obtain their products, materials, services and employees from the direct vicinity. We will see a new type of hotel, the so-called “10 kilometre hotel”, which will purchase or obtain all its resources within a radius of 10km. Moreover consumption will be measured for each guest, and bills will show separate accounts for the use of electricity, water and similar resources. Those whose consumption is less than average will get discounts.
3. Trend: Alternative Transport
With the growing cost of flying, travel will follow the slow food trend. We will be increasingly aware of the value of “slow travel”, by using trains, boats and bicycles. With the rising cost of fuel (if this continues) cheap flights will not be with us for much longer. Travel by train will be simpler and the global reservation system will be created.
New websites will enable travellers to select a flight from those airlines that for certain itineraries generate less emissions. We will see the growth of more environment-friendly biofuels, and in the cruise industry we will see a lot of new ideas that will reduce the carbon footprint, such as adding sails to large cruise ships, or a return to airships for shorter trips.
4. Trend: Changing climate conditions and planning the future
The traditional migration from northern to southern Europe in the summer months will be threatened by temperatures that will be too hot for the majority of tourists. Extreme weather phenomena will become more frequent, which will reduce the tourist season in many destinations, such as in the Caribbean. Tourism ministers will become wiser in planning – a few years ago they were still setting targets for doubling tourist numbers, and believed that this would bring in more cash. Now they will be aware that this is not necessarily the right way to increase the benefit and income from tourism. Smart destinations will not just pursue an increase in tourist numbers. The sharing of experiences by consumers and travellers, and this will promote the democratisation of travel. Both travellers and local people will have greater incentives to share their experiences.
5. Trend: Labelling holidays and travel
In the past few decades we have witnessed how the food industry introduced numerous brands and labels such as fair trade, organic, locally made – and we will see a similar concept in the tourism and travel industry. The holistic approach to responsible tourism will include the labelling of holidays depending on how they impact the local community and its culture and environment.
Summary: Seeking Utopia
• In the future, the tourism and travel industry will acquire a sustainable and responsible orientation, with emphasis on preserving identity and culture, and will recognise what is unique and will preserve what is different.
• We will fly less and will fall back in love with what is closer to home.
• We will have no more personal, in-depth relationship with the destinations we visit.
• We will better understand our individual and internal motivations to travel.
Trends in Tourism: Green Sleeping
The demand for green holidays is on the increase and so in the European Union eco tourism is becoming ever more important. One of the main priorities is eco-friendly accommodation in rural areas. One of the most important trends is holidaying in rural areas.
The future of rural tourism in Europe, Slovenia included, lies in self-initiative of the communities to attract investors and meet the increasing demands for rural-based holidays. This drive to grow will, of course, need to respect the intrinsic values of each territory, so all policies and supports must be based on achieving sustainable development.
A bright green eco future seems to await the rural areas in Slovenia.
The Vision of Slovene Tourism
Slovenia’s vision should differ from the visions or large and established tourist destinations due to Slovenia’s relative smallness and still–un-discovered character. One the increase will be that segment of people who in choosing the destination will primarily be guided by the search for authenticity and connection with their (self-) image.
Vision:
Slovenia will become a developed tourist destination with diversified and quality tourism focused on shorter holidays. Furthermore, Slovenia will also become a desired destination for longer vacations with its attractive and diversified integrated tourism products.
In Slovenia, all European elements can be found, and therefore everyone feels at home. Because of its central position in Europe, it is an ideal starting point for visiting all major European sites of interest.
Values:
• Hospitality and well-being
• Protection of natural and cultural heritage
• Healthy and active life
• mysteriousness
Objectives
In this strategic period, six basic objectives are going to be set. Three quantitative objectives:
• Increase in tourism volume
• Increase in tourist expenditure
• Improvement of recognisability
Increase in tourism Volume:
• For the number of tourists: 60%
• For the overnight stays: 4%
• For tourist receipts: 8%
Improvement of recognisability: Slovenia are not interested in recognisability of the total population, but within target groups (in terms of demography, geography and/or motives). The recognisability of Slovenia within these target groups must reach at least 50%.
Three qualitative objectives:
• Decentralisation
• Deseasonalisation
• Promotion of changes
Decentralisation: They key competitive advantage of Slovenia is it delivery within a relatively small space. Therefore, it is necessary to design up to ten basic thematic tourism products
Deseasonalisation: Slovene tourism should be designed so as to create motives for the arrival of tourist out of high season. Deseaonalisation (annual and weekly) will also contribute to a stable an sustainable development of destinations and to a higher quality of services, a better annual utilisation of tourist capacities, improved working conditions, a better attitude to the local population towards tourism, etc.
Promotion of changes:
On the charts of top-performing tourist destinations, Slovenia ranks poorly. The Slovenian tourist offer should become:
• Connected
• Of high quality
• Specialised
• Innovative
• Become and remain authentic, and be based on knowledge and information.
Strategies – Basic Strategy
In order to successfully compete in the new, global and growing market, tourist activity (whether at the international, national, regional or even local level) has to be integrated into “Symbolic networks” (at the international, national, regional or local level) and to cooperate in the network of organisational with others in such a way as to jointly optimise the overall tourist services/offer/ITP.
Networking represents the future. We will only be successful is we are linked into networks. The global market will intensify the network relationships as a basis for maintaining and expanding influence and position on global markets.
Marketing and Promotion Policy
In drawing up the promotion and marketing policy of Slovene tourism, the following facts have been taken into account:
• Poor recognisability (of Slovenia as a country and destination) beyond the neighbouring regions.
• A small number of tourism brands enjoy better recognition than the destination of Slovenia itself.
• Low acceptability due to ignorance and stereotypes stemming from Slovenia’s location in Eastern Europe and the Balkans. Furthermore, there is still a tendency to confuse Slovenia with Slovakia.
• Consequently, low expectations in terms of quality tourism.
• Consequently, expectations for lower prices.
• Slovenia has no national symbols recognised abroad, such as towns, natural, cultural and other attractions, brands, national dishes or drinks.
• In terms of investments in marketing, Slovenia cannot compete with the investments of major tourist destinations.
• Slovenia will have to reach a national consensus on national and destination symbols to be focused on in terms of promotion. Initially, a maximum of 3 internationally recognisable national (and not only regional) symbols should be developed, while the rest should be introduced gradually.
Common Promotion……..
Strategy of Slovenian Tourism
In 2016, tourism in Slovenia will be entirely based on sustainable development and Slovenia will be a developed tourist destination with a modern, diverse and top-quality tourist offer, based on innovative and quality integral tourist products and high value-added services aimed to satisfy tourists.
The working name of the new Development Strategy for Slovenian Tourism is “2012 – 2016 Partnership for the Sustainable Development of Slovenian Tourism.”
Tourism in Slovenia, to a large extent, still represents unexploited possibilities in terms of its economic and social development and recognisability in the world. In terms of relative volume of tourist capacity and number of tourism operators in Slovenia, as well as tourism traffic and employment in tourism (in view of Slovenia’s natural attractions), Slovenia still lags behind other comparable countries and regions in Europe.
These can only be realised with the valorisation of Slovenia’s natural and unique assets.
Travel and Tourism in Slovenia
Incoming tourist receipts grows slower than arrivals. Lower prices driven by competition and many special offers and discounts offered by Slovenian tourist operators have led to significantly lower growth of income receipts than arrivals growth. It does not mean that Slovenia has become a cheaper tourism destination, but tourists are not willing to pay like before the recession and they are trying to find cheaper tourism products within the same segments as during the pre-crisis period.
Online Sales
Although the online channel still makes a minority of all transaction value, it is becoming an increasingly important model of payment. This became especially important during the economic crisis when both tourists and tourism operators were trying to avoid intermediaries because of higher prices. Most Slovenian tourism operators sell their services through the well-designed and updated websites, so tourist with lower budgets can easily find special offers and last-minute arrangements.
Croatia
Arrivals stimulated by promotional activities and destination repositioning. 2012 showed positive trends for arrivals, with an increase in visitors from almost all markets. Arrival numbers are expected to grow.
Accommodation structure continues to lag behind market trends. It seems Croatia still has not found the best formula to consolidate its enormous private accommodation sector. This highly fragmented market has no price consensus or regulations and accumulates low revenue. Now non-traditional markets have found their way to Croatia. The majority of new arrivals arose from China and Brazil rapidly increasing arrival trends.
Domestic travel levels indicate slow economic recovery. Croatia is still experiencing post-recession recovery influences through relative high unemployment levels and low purchasing power.
All tourism sectors showing good future prospects. With the current economic perspectives, including Croatia’s EU succession in 2013, the travel and tourism industry is expected to be the driving force for the country’s future development with positive trends seen in almost all tourism sectors, Croatia – a country once labelled only as a transitional country with unclear future prospects – shows good tendencies for future development of its tourism sector.
Strategic Principles:
