Domestic Tourism Development as a Tourist Product Diversification Tool

1
Domestic Tourism Development as a Tourist Product
Diversification Tool

• Mr Stanislav Novakov
• Deputy Chairman of the Bulgarian State Agency for
  Tourism
  
• Vice-President of UNWTO Programme Committee

Moscow, Russian Federation 23 March 2009
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Some Examples

• Importance of Domestic Tourism for two of
  leading Tourist Destinations in Europe Germany
  UK
  
• Germany UK more than 35 per cent of European
  outbound travel
  

3
Europes Leading Markets Germany

• Population 82 million
• Most important source market worldwide
• 74.8 mil. holiday trips /2007/
• More than 1/3 of them are domestic trips
• Most popular regions in Germany coast regions,
  Bavaria, the Alps
  

Source F.U.R. Reiseanalyse
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Europes Leading Markets Germany

• Preferences
• 59.82 are interested in landscape and nature
• 10.27 interested in sport activities
• 29.91 Interested in leisure - recreation

Source F.U.R. Reiseanalyse
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Europes Leading Markets UK

• Second largest source market in Europe
• About 60 mio holidays for 2008
• 27,29 mio of overseas (47)
• 75 relaxation SSS
• 25 enjoy nature different land and culture

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• Example of Bulgaria

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Tourism in Bulgaria 1). Facts Figures

• Priority sector of the Bulgarian economy
• International and domestic tourism revenues
  contribute 14 to GDP
  
• Direct employment in tourism over 170 000
• Total number of employees including sectors
  related to tourism 474000
  
• 15.6 of the Bulgarian economy is a result of the
  multiple tourism effect
  

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Tourism in Bulgaria total demand

• Bulgarias Travel Tourism is expected to
  generate EUR 8,379.4 million of economic activity
  (total demand) in 2010, growing (nominal terms)
  to EUR 17,728.5 million by 2017.
• Total demand is expected to grow by 4,7 in 2008
  and by 4,6 per annum, in real terms, between
  2008 and 2017.
  
• 2007 Total demand represents 0.1 of world market
  share.
  

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Source WTTC, 2007
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International Tourist Arrivals (in mio.)
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Receipts Expenditures from International
Tourism /2001 2008/ in mio. Euro
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Tourist Arrivals by Main Markets /2007/
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Tourism in Bulgaria Statistics 2009

• The revenues from international tourism
  (exclusive of transport) for the 2008 totaled
  2 533.4 million EURO (10.8 compared to the year
  2007).
• from 8 532 972 arrivals incl. 2 753 144 transits
  
  
• The revenues from domestic markets 2 050 000
• The expenditures of Bulgarian nationals on
  travels abroad for the period January December
  2008totaled 1 597.5 million EURO
  
• 5 726 767 travels abroad

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Classification of tourism trips according to
main purpose

• Holidays leisure and recreation
• Visiting relatives
• Culture historical curiosity
• Health medical cares
• Pilgrimage/religion
• Shopping
• Gourmet tourism
• General behavior and quality of services
• Others

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Perform analyses

• Availability of
• Natural resources
• Human resources
• Infrastructure
• Product pricing
• Area competitiveness

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FINDING OF POTENTIAL AND COMPETITIVE
ADVANTAGES IN

• The available recreation and tourist resources
  allow the development of different types of
  tourism and combinations thereof, as well as
  their utilization round the year or at least for
  two seasons.
• Around half of the national territory possesses
  favourable conditions for the development of
  diverse types of tourism as well as that there
  are no large areas without opportunities for
  tourism development.
• All over the country tourism is perceived as one
  of the main tools to support regional and local
  development.
  

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FINDING OF POTENTIAL AND COMPETITIVE
ADVANTAGES IN

• Creations of competitive price level packages for
  domestic travellers (reasonable value for
  money)
  
• upgrading and building new accommodation and
  other facilities
  
• Developing of authentic nishe products
• the still relatively low degree of development of
  areas that are attractive for tourism (in terms
  of constructed tourist accommodation and
  technical facilities), more specifically in the
  mountains to develop eco and rural tourism
• and creating the legal framework for that

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Actions of BSAT

• Immediate preparation of studies and drafts on
• Strategy for sustainable development of tourism
  in Bulgaria 2009-2020
  
• Draft of Programme for development of eco-tourism
  in Bulgaria and an Action plan for implementation
  (2009-2014)
  

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• Fast development of Eco and rural tourism
• Predominantly small facilities family hotels,
  villas, chalets, etc.
  
• The quality of service is guaranteed through
  obligatory categorization and voluntary
  certification (PAN parks, Authentic Bulgaria)

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NEW OUTDOOR ACTIVITIES ,
ADVENTURE AND SPORTS IN

• Rock climbing
• Delta- and paragliding
• Caving
• Off-road safari,

• Wild water rafting
• Scuba diving
• Horseback riding etc.

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NEW OUTDOOR ACTIVITIES ,
ADVENTURE AND SPORTS IN
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DVELOPMENT OF SPA, WELLNESS AND BALNEO TOURISM
Lots of new balneogical, spa wellness complexes
About 1 600 hydro mineral springs are clustered
in over 240 water formations, with a total
capacity of nearly 4900 liter per second.
Temperature cold - below 37 C, warm - up to 60
C, hot - up to 101 C. There is wide variety and
abundance of hydrothermal, bioclimatic, sea cure
and other health resources.
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Tourism in Bulgaria5). Marketing Approach
Guidelines

• Year round home advertising campaigns radio, TV
  
  
• Home Research-based approach
• Integrated and consistent brand management
• Concentration on key markets and key marketing
  tools
  
• Emphasis on both traditional and new media of
  communication
  

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Extensive local advertising Positioning domestic
market as

• An all-year-round destination offering
  diversified tourist products
  
• offering excellent conditions for summer holidays
  
  
• Best ski destination on the Balkan peninsula
• Destination offering excellent conditions for
  medical spa, spa wellness tourism

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International Facts Figures /2008/

• International tourist arrivals worldwide 924
  mil. (1.8 growth to 2007)
  
• International tourist arrivals in Europe 489
  mil. (0.1)
  
• Europe is still the leading region with a market
  share of 52.9 of international arrivals
  
• but

Source UNWTO
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Facts Figures /2008/

• Market share of Europe has been constantly
  reducing from 57.5 in 2000 to 52.9 in 2008
  
• Europes performance in 2008
• Jan. June 3.0
• July December - 3.0

Source UNWTO
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Factors of change /2008/

• Financial / credit crisis
• Lack of confidence
• Economic downturn
• Looming global recession
• High interest rates
• Rising inflation

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Consequences Perspectives /2009

• Travel closer to home, Late booking
• Growing importance of value for money
  destinations
  
• Reducing length of stay duration

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But..

• Be realistic embrace changes in markets
• Traveling locally or overseas Travel means
• Jobs, Infrastructure, Trade, Development
• and.EMOTION !!!