Transcript Slide 1

A NEW MARKET – SCANDINAVIA AND THE NORDICS –
MARKET INSIGHTS AND HOW WE COULD BETTER
SYNERGISE TRADE ACTIVITY AND GOVERNMENT
SUPPORT IN NON-CORE SA TOURISM MARKETS”
Panel discussion
Derek Houston –Houston Travel Marketing Services
Per Caroe –Kenya Airways Copenhagen
Patrick Menzies – SAA Copenhagen
Rung Button - Inspirations Travel & Tours
Pelle Landstedt Propel Africa
Collin Thaver Albatros Travel
NORDIC MAP
COUNTRY STATISTICS
SIZE
POPULATION
km2
GDP ppp
UNEMPLOYMENT
dollars per capita
April 2013/14 in %
GATEWAYS
450.000
9.196.000
58,164
8.1
3
43.094
5.475.000
58,930
7.0
3
Norway
385.155
4.752.000
100.819
3.5
6
Finland
338.145
5.308.000
47.219
9,4
1
Estonia
45.227
1.340.000
18,478
8.7
1
Lithuania
65.200
3.369.000
14,478
11.5
1
Sweden
Denmark
ARRIVAL STATISTICS FROM NORDIC COUNTRIES
2012 AND 2013
2012
2013
Sweden 40856
44125 8%
Denmark 25149
26245 4,0%
Norway
23156
24736 7%
Finland
10203
10680 4,5%
Total
99364
105786
+ 5000 from Baltic states =110,000 Grand total
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Kenya arrivals 2013
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Sweden 13087 Norway 10005 Denmark 9771 Finland 4675
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Total 37538
LONG HAUL MARKET EX NORDICS
many competitors fighting for the travelling public
Comparison of the main overseas competition – 2013 stats
– USA, 1.003.000 visitors from DK/NO/SE
– Thailand, 800.000 visitors from DK/FI/NO/SE
– Dubai, 165.000 visitors from DK/FI/NO/SE –.
– Canada, 117.000 visitors from DK/FI/NO/SE
– Australia, 93.400 visitors from DK/FI/NO/SE
• South Africa the 5th largest overseas market
• This shows there definitely is a market for South Africa and the
potential to grow in Scandinavia
01: THE NORDIC
TRAVEL MARKET
ALTHOUGH THE NORDIC COUNTRIES ARE SPARSELY POPULATED, WITH ONLY 25
MILLION INHABITANTS, THE NORDIC REGION IS A HIGHLY IMPORTANT MARKET FOR
OUTBOUND TRAVEL, MAKING IT THE THIRD LARGEST OUTBOUND MARKET IN EUROPE.
They are big spenders
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Spend more than USD 20 billion on travelling per annum.
Travel spending per capita is among the highest in the world.
Nordic countries far surpassing spending from Germany and England.
They are frequent travellers
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The high spending power facilitates frequent travel
Almost nowhere in the world do people travel abroad as often as the Nordic
tourists.
They journey outside Europe
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Currently more than 18 % head beyond the borders of Europe per annum –
Thailand & USA big
Travel outside Europe is in search for leisure and culture. - Growing
They plan more holidays
Statistics show that the Nordic tourists are planning more holiday travels in 2014
and beyond.
The world’s best tourists
2012.
A recent research study revealed that Nordic tourists are the best tourists in the
World – based on ratings in five different areas:
Categories:
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2.
3.
Willingness to speak the local language
Polite and approachable
Willingness to adapt to local culture
AIR ACCESS TO SOUTH AFRICA
KQ/AF/KL
 SAA
 Lufthansa/Swiss
 British Airways
 Gulf carriers
 Turkish
 Ethiopian
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2015/07/16
AIR FRANCE AND KLM IN NORTH EUROPE
Summer schedule 2014
Trondheim
(3 daily to Amsterdam)
Ålesund
(2 daily to Amsterdam)
Bergen
Oslo
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(3 daily to Paris,
6 daily Amsterdam)
Helsinki
Stockholm
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Stavanger
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● Linköping
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Sandefjord
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Göteborg
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Kristiansand
Aalborg
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(5 daily to Paris,
3 daily to Amsterdam)
(5 daily to Amsterdam)
(3 daily to Paris,
5 daily to Amsterdam)
(5 daily to Amsterdam
2 daily to Paris)
(3 daily to Amsterdam
2 daily 7JUL-31AUG)
(2 daily to Amsterdam)
(2 daily to Amsterdam)
(3 daily to Amsterdam)
(3 daily to Paris,
5 daily to Amsterdam, 1 daily
(except Sat to Lyon)
Billund
(1 daily to Paris, Copenhagen
5 daily to Amsterdam) (5 daily to Paris,
6 daily to Amsterdam)
STAR ALLIANCE NORDIC & BALTIC CONNECTIONS
In cooperation with our Star Alliance
Partners Scandinavian Airlines &
Lufthansa, SAA offers multiple
connections to London, Frankfurt
& Munich from:
Copenhagen & Billund in Denmark
Bergen, Oslo & Stavanger in Norway
Gothenburg & Stockholm in Sweden
Helsinki in Finland
Tallinn in Estonia
Riga in Latvia
Vilnius in Lithuania
LONG HAUL MARKET PROFILE EX NORDICS
Long Haul travel is on the increase where Thailand and the USA are by far
the biggest. A couple of reasons for this:
1. DK and SE have long standing cultural ties with Thailand. A small
example of this is the start up of Thai Airways which was largely
aided by SAS executives and operational staff. Even Thai’s “motto”
Smooth As Silk is a tribute to SAS
• Thai Airways offer 10 weekly from CPH and daily from STO and
OSL
• Finnair offer 10 weekly flights HEL-BKK
• Norwegian (LCC) offer 4 weekly OSL-BKK, 3 weekly STO-BKK and
from OCT14 2 weekly CPH-BKK.
• the entry of EK and QR has put enormous pressure on all Asian
destinations – all in all more capacity and lower fares
2. SAS, Norwegian, AC, AY, DL & UA all have non-stop services to the
USA
3. seasonal charters to some Caribbean destinations.
03: THE NORDIC
ECONOMIC SITUATION
• The level of income in the Nordic countries is generally
high
• Record-high percentage of income is spent on
travelling.
• Nordic tourists’ per capita travel spending is among the
highest.
• They travel abroad more frequently than other tourists
in the world.
• The research also shows that after Germany and UK
the Nordic countries are the marked that spends the
most money on travelling in Europe.
• In the past ten years, the Nordic countries have had a
noticeably greater increase in GDP.
• Nordic tourists’ private consumption is also seeing a
positive trend.
• Nordic tourists spend 90% more money than the
average European tourist on food, accommodation
and attractions while on holiday.
03: THE NORDIC
ECONOMIC
SITUATION
How much money do they
cont…
spend on travelling?
• The average Nordic tourist spends more than 1,000 euro when
vacationing within Europe.
(transport, accommodation & consumption).
• Whilst a greater amount is spent outside Europe, *This is also a
growing market as most have visited Europe over the years and is
looking for new destinations.
• Research shows that Nordic tourists spend more money on travelling
than any other European group and the numbers are increasing each
year.
 Danish travel spending has for instance
grown 63 % in just three years.
 Swedish tourists’ holiday consumption in
2015 is expected to amount to 11.1
billion Euro.
Research shows that
Nordic tourists spend
more money on travelling
than any other European
group and the numbers
are increasing each year.
PROFILE OF NORDIC TOURISTS TO SOUTH AFRICA BY
RUNG BUTTON
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Travellers are generally 30+ years (younger book flight tickets online
Groups Travel popular for older passengers who need specialist language guiding
/ help with practical check-in/out and other arrangements.
English is widely spoken. Finnish clients where English is not as widely spoken
Increasing demand for FIT bookings, including bigger family groups 8 – 12 pax.
Most ask for SA only, some ask for combination with other destinations they tend
to visit only one country at a time (with exception of extension visits to Vic Falls)
Duration: generally 8 – 14 days
Approximately 80% of requests are for 4* hotels / lodges
Main drawcards are: nature / wildlife / safari and also city life / city
exploration. Culture is less of a drawcard.
Security: not a major obstacle.
Only a few book self-drive holidays, they are unsure of driving ‘on the wrong side
of the road’
Mainly leisure travellers, very small portion of business travellers.
Most popular travel period: the traditional high season (Oct – Apr).
Remember that Scandinavia have a longer, colder and darker winter - need for a
warm and sunny holiday destination is very important.
combination of beach / city / wildlife,
MARKET PROFILE SWEDISH TRAVELLERS –PELLE
LANGSTEDT
Ages Incentive groups: 30-55 Leisure groups: 55+
FIT or Groups : groups from Sweden has gone down over the last
five years FIT-segment is rapidly growing.
South Africa Only or multi country Incentive groups:vast
majority only RSA. A few choose an add-on country, and almost
always Victoria Falls. Leisure groups: Most leisure groups do more
countries than just RSA.
Length of Stay in SA Incentive: 3-5 nights .Leisure: 7-12 nights
Three star or Five star Incentive: 3-4 star (but most often 4)
Leisure FIT’s: 3-4 star (but most often 3)
Culture Incentives: always encourage a visit to the townships linked
to some CSR activity.-often seen as the highlight of the trip
Leisure : Definitely high cultural interest
MARKET PROFILE SWEDISH VISITORS –PELLE LANGSTEDT
Main destinations Incentive: mostly just Cape Town (but also
safari if budget)
Leisure Travellers: Cape Town, Winelands, bush often overland
Garden Route
Security concerns Incentives: Very little. Leisure : Some
concerns but has decreased over the last 5-7 years
Self Drive growing segment from Sweden.
Youth- voluntourism 2-3 groups per year, but this is not a huge
segment.
Beach Resorts –In SA or Mozambique No demand for SA
beach resorts - some add-on’s to Mozambique
Safaris -in SA or neighbouring countries Primarily Greater Kruger,
Pilanesberg, Madikwe and some in Eastern Cape & Botswana.
MARKET PROFILE FINNISH TOURISTS BY TOUR
OPERATOR
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Characteristics of the Finnish travellers to South Africa
Ages +40 ( main interest 50-65)
FIT or Groups FIT,
special groups, who do have special interest are growing ( Wine, golf, safari..)
South Africa Only but can be with Namibia/ Botswana &Mozambique
Length of Stay in SA Minimum 10, average 14 days
4* -5*
Main attraction for visiting South Africa - Nature/ Safari/Wine/Golf
Culture Zulu culture, culture would be one part of the tour(max two days in 14
days journey)
Main destinations , Cape Town , Garden Route, Kruger, KZN
Security concerns Very much
Self Drive Very popular
Youth- voluntourism Very few
General Market Conditions in Finland - Increasing demand for Long Haul travel
80,000 Finnish tourists to Thailand per year
CURRENT PROMOTIONAL ACTIVITY BY SOUTH
AFRICAN EMBASSIES IN NORDICS
Denmark
Continued publishing of the Embassy’s monthly newsletter presenting
events taking place in South Africa two months ahead. The electronic
newsletter is circulated to tour operators, wine importers and other
Embassy contacts..
Apart from the newsletter, nothing has been planned due to lack of funds
FINLAND
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Nothing planned for rest of the year. Participate in MATKA and TOUREST
ESTONIA
SWEDEN
TUR Gothenburg –February 2015 but funding problem
ANTOR Sweden Roadshow .
Senior Show October Stockholm –as very travel focused
NORWAY
Short staffed .Have not exhibited at Trade shows for past few years
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WHAT SHOULD SAT /DEPT. OF TOURISM BE DOING TO
PROMOTE TOURISM TO SOUTH AFRICA
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Cultural events for the public
Workshops for tour operators
Establish a network for tour operators and travel agents selling South
Africa…FUNDI programme?
Invite Danish travel journalists to cultural events in South Africa
Organize promotion of golf in South Africa to Danish golf clubs
A Danish website promoting tourism to South Africa
Co-operate with staff clubs in bigger Danish companies and organisations
about SA evenings with SA food, wine and tourism presentations.
Financial support to participate in Trade Fairs
Consumer Advertising
Press trips-air tickets always a problem
BROCHURES & POSTERS –particularly from Cities and Provinces
WHAT DO THE INTERNAL ROLE PLAYERS FEEL ABOUT
TOURISM GROWTH TO SOUTH AFRICA:
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Abstracts taken out from published articles or discussions with Henrick Koch, CEO of Scandinavian tourism PR agency,
Karin Gert Nielsen, MD and CEO of Tourism Promotion Agency, Atlantic Link, Ben Hurst, Product Developer, Albatros
Travel AS; Eva Stenmarck, Travel Marketing Nordic, Nick Buckland, Into Africa, Johnny Henson,Vice Chair NSBC and
director IFU, Monika Luel, GM International Marketing
 Nordic Travellers offer great and untapped potential to Southern Africa –
Suppliers and TO – Based on disposable income and length of holidays each
year
 Compelling arguments for investing in Nordic Countries – Large part spent on
travelling, 90% more money spent on Food, accommodation and
attractions, 60% take a holiday once a year, 3rd largest market for outbound
tourism
 Scandinavian travellers are very resilient in the face of economic crisis – they
tend to travel more – 66% said when surveyed and 23% tailor their holiday
plans
 Nordic travel spend is more than US$ 20 bn or R 199 bn and steadily
increasing
 Annual growth of about 5.9% collectively YOY (based on SAT) could be far
greater.
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South Africa is the perfect match – as Nordic travellers are seeking authentic
WHAT FACTORS DO WE NEED TO CONSIDER AS ROLE
PLAYERS WANTING A GREATER SHARE OF THIS MARKET:
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SAT needs to consider NORDICS as a region and not as individual countries. Will
show greater tourism impact as compared to current setup.
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Dedicated Nordic SAT person based in the region or out of London– worked
better in the past – SAT need to ensure greater involvement and awareness
 SAT Collaboration with independent roadshows and marketing efforts. Why work
divided rather pool resources
 English is a common understood medium in Scandinavia not so much Finland –
communication barrier is not so much of a challenge as made out.
 Learnings from Swedish key trade partners, TUR and familiarisation trips – needs
to be capitalised within the full potential in this region – not just one country –
currently Sweden
 Sweden currently an investment market going to be downgraded as Watchlist
market– questionable – all 3 Scandinavian countries will be watchlist markets.
Could kill future growth.
 Embassy involvement needs to be increased
WHAT SOUTH AFRICA COULD DO TO INCREASE
NUMBERS FROM NORDICS MARKET
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Active advertising:
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Appoint a good PR agency ensure the “good stories” are told in the local press. This could
also be the channel to change any negative perceptions
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joint marketing with various tour ops./agents to keep costs down and help create
“loyalty” from the agents. They are more likely to sell products they advertise.
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Join forces with other SATSA countries to better promote the region
Some TV channels have “this programme is brought to you by….” This could be used to create
a link between various relevant nature programmes and South Africa
Support SA DMCs and “individual products” that are active, specifically in this market – there
are several that visit Scandinavia on a yearly basis to keep in touch with clients and to seek
new business.
Continued and more active participation at TUR trade show in Gothenburg – ensure exhibiters
search for business rather than sit and wait for it to come
Encourage DMCs and suppliers to visit the area and have individual meetings
Ensure all campaigns cover the full spectre of SA properties
Focus on specific segments – as mentioned Golf is very popular here.
Actively market Indaba in Scandinavian Travel Trade media
LONG HAUL MARKET EX NORDICS
many competitors fighting for the travelling public
Comparison of the main overseas competition – 2013 stats
– USA, 1.003.000 visitors from DK/NO/SE
– Thailand, 800.000 visitors from DK/FI/NO/SE
– Dubai, 165.000 visitors from DK/FI/NO/SE –.
– Canada, 117.000 visitors from DK/FI/NO/SE
– Australia, 93.400 visitors from DK/FI/NO/SE
• South Africa the 5th largest overseas market
• This shows there definitely is a market for South Africa and the
potential to grow in Scandinavia
WHAT SHOULD SATSA MEMBERS BE DOING TO
GENERATE SALES
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Get basics right
Train partners in local seminars,
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Supplement with Educationals.
Do joint calls with partners to key customers
Concentrate on targetted activities and work
shops
Take advantage of partners database
challenge the use of it. Be certain who you
target; Tos, Tas, MICE, Individuals,
Corporates (line of business), Public offices
Be active in PR
Work Closely with the Embassies
NEW MARKET TO
04: TRAVEL HABITS
cont…
Popular destinations
The most popular European holiday destination for Nordic
tourists is Spain. However, there seems to be an increasing
interest in non-European destinations when buying package
tours.
Approximately one out of four holidays go to a destination outside Europe
• Thailand is a very popular holiday destination outside Europe.
 This is due to low prices for flights and hotels – and the possibility
for different experiences.
• The US is also one of the most popular destinations.
• It is mainly in the winter that Nordic tourists make these overseas
journeys.
They like a good deal
Nordic travelers are very aware of exchange rates and make
good use of the possibilities this brings. i.e. the low dollar
rate encourages them to travel across the Atlantic and down
South.
How do they prefer to travel?
The most popular forms of travel among
Nordic tourists are:
1. All-inclusive Package Tours – Longer stay
04: TRAVEL HABITS
cont…
Length of travel
Nordic people have long holidays compared to other
countries. 5-6 weeks is the average for all four countries.
They often take 3 successive weeks in the summer or
winter time.
• During 2011, Finnish residents aged 15-74 made a total of 5.6
million leisure trips abroad.
• In Norway, there has been an increase of 4.6% in travelling abroad
from 2008-2012
• Since the millennium, Swedes’ holiday travel has Increased by
17.5%
• According to new research, 50% of Swedish Tourists are planning
more travels abroad.
• In 2014 compared to 2013. The corresponding figures for Norway
What
will they be looking for?
and Denmark are 42% and 36% respectively.
New perspectives
Thailand, USA and Canada will remain popular.
Other destinations such as Brazil, Australia, Japan and unique places
such as Southern Africa and East Africa will become even more popular
travel destinations in the future.
05: IMPORTANT
SEGMENTS
There are three important market segments with great
potential when entering the Nordic travel market.
They are:
1. Families with children
2. Singles with no children
3. Empty Nesters
*Travel activity is increasing for all groups.
Families with children
• Families with children are an important Segment of the Nordic
tourism market.
• These families typically use the school holidays to be together.
• Experiencing things together is important because the parents
have less and less time.
The most important
aspects for these families
when travelling are:
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The children should have fun
The family should have shared
experiences.
The parents want to relax
The parents need time with their
children.
The children should be active
05: IMPORTANT
cont…
SEGMENTS
Singles
Singles either travel with other singles or they go
alone on group related tours, which more and
more singles are daring to try.
• Single culture is growing, and a large proportion of singles
have no children.
• This makes singles’ holiday travel a growing industry within
the Nordic countries.
Why do they go?
The advantages of singles’ holidays
are freedom and social interaction
between single travellers.
• Only 30 % of the women and half of the men would travel to
find a partner.
• Instead, the majority choose singles vacations in order to
find new friends and share experiences.
Empty Nesters
Empty nesters are adult couples, aged
45+ with no children living at home.
Empty nesters are an attractive target group due to
the fact that they
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Have a great desire to travel
Have a lot of money
Spend more money than the average tourist
Take longer vacations
Can take vacations outside the peak season
Empty nesters are a rapidly
growing segment globally
and in all the Nordic
countries
In Denmark, the number of people over 60
makes up 33 % of the Danish population.
Nordic region empty nesters are very interesting as an
outbound travellers due to their richer travel spend.
They also take longer vacations and most of them are
able to travel outside of peak season, for instance
06: BOOKING
BEHAVIOUR &
PLATFORMS
Active Online Searchers
Nordic tourists are active online
searchers gathering more
information than the average
European tourist. Information
searches on the Internet are
increasing and an average of
60 % book their vacations online.
Booking patterns should be flexible
• Prefer booking online because it is flexible and they can
search and plan their holiday exactly the way they want
it.
 63 % are satisfied with planning their holiday
themselves
 57 % used three or more websites to plan their
holiday
 39 % will definitely plan their next
holiday themselves
*When travelling into Africa or unknown
destinations, preference is given to use
a travel specialist.
The women make the decisions
• Research shows that women take the lead when
The most important sources of information
The most important sources of information for choosing a specific
destination for Nordic tourists, are:
In Norway, travel and holidays are
the most bought or ordered
products online.
1. Been there before
2. Google.com
3. Recommendations from friends or families
4. Official website for travel agency
5. Official website for hotels, attractions etc.
6. Newspaper advertising
What’s important?
Inspiration from the Internet makes up
three out of five information sources and
therefore it plays a very important role
in terms of searching for inspiration and
booking a holiday.
What’s not important?
The most ineffective information sources
are TV spots, exhibition visits and travel
04: TRAVEL
HABITS
The Nordic tourists travel a lot and they will be travelling more
in 2015 than in recent years. (Increase expected to exceed)
About 50% of all their travels are to foreign countries.
Overseas holiday travel will become more popular in the future.
The Nordic countries are the third largest
Outbound market in Europe.
They are starting to travel in their summertime
• 30 % of all Danish vacations in 2012 took place in July and August.
• This is almost the same in Sweden with 32.2 %
of all annual outbound travel.
Shorter trips becoming popular
• For instance, they take city breaks in the Easter period or autumn
holidays, and then a longer vacation in the summer or during the
winter.
They prefer a warm climate
• Nordic tourists prefer to travel to destinations with a warm climate
where they can relax and spend time with family, relatives and
friends.
• Experiencing big cities and different cultures are other elements that
attract Nordic tourists when traveling abroad.
SA is the perfect match with
SA EMBASSY DENMARK MARKET PROFILE
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In general, the biggest group of travellers to South Africa are 50+,
Danes are often travelling to South Africa in smaller groups (often in families).
most Danes organize their own holidays and book everything on the internet.
Most of the Danish tourists only travel to South Africa.
Length of the stay is often around 14 days.
Accommodation is often three-four star and small guesthouses and B&Bs are
popular amongst self-drive tourists.
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The main attractions nature and animal life but culture and history are
growing.
Main destinations are Kruger Park, Cape Town, Wine lands, Garden Route.
The security situation has certainly discouraged some potential tourist from
going to South Africa..
Self-drive is very popular.
Voluntourism is growing for youth as well as for pensioners. Danish NGOs are
offering such tours.
TRAVEL & TOURISM
The 2014 Travel Image report on Nordic Outbound Travel has just been published. The study encompasses
responses from 2300 people over 18 years of age and looks at the Image of and the respondents Awareness and
Attractiveness of 89 destinations.
See: http://www.related.dk/files/pdf/Travel_Image/travel_image_2014.pdf
Some interesting details:
1.
The Image of SA ranks 45 overall and 18 of the overseas destinations, with New Zealand the winner, it’s
popularity mainly driven by the two movies, Lord of the Rings and The Hobbit – however arrivals to NZ are
about half of to SA
2.
The Image of SA ranks 4 when asked about Africa and Indian Ocean Islands
3.
The Awareness of SA ranks 50 overall and 14 of the overseas destinations
4.
The Attractiveness of SA ranks 48 overall and 21 of the overseas destinations
Destinations like USA & Thailand are very well marketed in this area. Both offer excellent value for money and
safety. The US is known for its diversity, shopping, “culture” i.e. movies and books etc. There is also a rather large
VFA market to the States.
Thailand has always highlighted its beaches in the south and the tribes of the north. I think we are all familiar with
their culture and cuisine.
Scandinavians know of South Africa, but not enough to make it highly attractive. This clearly indicates there is
”room to improve” and the most important tool must be Marketing - see the following slides.