Tourism and Hotel Groups in PortugalCompetitive Analysis Work accomplished by: Luisa Pires nº2460
Excutive Summary Brief BackGroung Market analysis In Numbers Segments Mega events The hotel market Strategic Operations Emitting countries strategic Destination competitor Project for the future Conclusion
In this presentation I plan to which defined the major hotelgroups in Portugal, which its strategy of differentiation,making an analysis of current supply.What is the impact of Euro 2008 and the current economiccrisis in Portuguese tourism.To analyze the competitive external environment.And finally, analyze the tourist development in the future.
Portugal• Portugal is a country on the Iberian Peninsula. Located in southwestern Europe, The Atlantic archipelagos of the Azores and Madeira are also part of Portugal..• The official language is portuguese.• Area total is 92,345km and the estimate population is 10,617,575 persons.• The capital is Lisbon.• The currency is Euro.• Tourism represents 11% of GDP (Gross Domestic Product).• Revenue more than 6 billion euros per year• 11.5 million tourists• 27 million visitors• 8 million domestic tourists• Approximately temperature in Portugal is: Summer 30º-40º Winter 10º-20º
10 strategic tourism products and areas of supply : Gastronomy and Cultural and Meetings and Wines Landscape Congresses TouringResidential Golf Sun and Beach Health and Wellness Tourism City Break Nature Tourism Nautical Tourism
Overall average stay of tourists 2006 (in days) Numero de turistas em 2006 Average daily spending by tourists in 2006 (Euros)• Domestic tourism accounts for 30%.• The emitting countries most important are Spanish, United Kingdom ,German.• Portugal occupies the 19th in the ranking of countries with more international tourists.
More than 80% of the number of beds is concentrated in theregions of Lisbon, Porto and Madeira.The segment that is more market power is the mostexpensive.Portugal is affirming its position as a tourism destination ofexcellence.
The number of tourists in the years of mega events do not increase significantly but has increased consecutively. According to information from site "tourism of*Tourists in Portugal (million) Portugal," : The “Euro2004” increased the number of tourists this year but also promote Portugal’s image as a City Break destination and re-enhance modernity and contribute to restructuring the offer and/or give visibility to the destination
Number of tourists increased 5.1% in 2007 Portugal received 23.7 million visits in 2007, representing a growth of 5.1 percent compared to the previous year, according to data from the National Institute of Statistics (INE) released today. Last year, an increase of entries of visitors in Portugal was due, mainly, the movement of tourists (visitors who stay at least one night in the place visited), which recorded a rise of 9.2 percent for 2006. Most tourists (7425 persons) came into Portugal by air, compared with 4896 tourists who entered the country by the border road. "To increase the air at the border [more 10.5 percent in 2007, compared to last year] has certainly contributed to creation of new airlines to national airports and the strong momentum of low-cost flights," states the report by INE . According to the institute, "during the year 2007, the three major markets issuers of tourists were from Spain, the UK and France", but "the markets issuers that have contributed most to the increase in tourists were from Switzerland, the U.S. and Ireland. " Most tourists (72.3 percent) visited Portugal for purposes of recreation, leisure and vacation. The also contribute to the growth of the entry of people in Portugal were the movements of excursionists (visitors who do not overnight accommodations in the place visited), which increased by 1.1 percent between 2006 and 2007. 2008 was much less tourists. That can be attributed to the economic crisis. Consequently increased domestic tourism.
There is still a lot of small hotels (80%) withoutdefined strategic plan.The the main players are:
The strategies adopted by major hotel groups can be summarized in: • Mergers and Acquisitions • Franchise • Management arrangements • Consortia • Joint-venture • Sole-venture • Licenses To fulfill the new transformations of the market, traders felt the needto develop ways of vertical integration; Own networks of travel agencies, hotel chains, airline companies andvarious support services to tourists; In Portugal the travel distribution is not comparable with that of themajor markets of Europe emitters.
More promotion in 21 target including the domestic market, anddifferentiated in function of their growth potential and Portugals competitive positioning,and classified into three groups:Strategic markets - Portugal, United Kingdom, Spain, Germany and France - that shouldbe subject to a major promotional drive, guaranteeing a significant absolute contribution totourism and stimulating relative growth in the low season (October to May), higher than that inthe high season;Markets to be developed - Scandinavian countries, Italy, United States of America, Japan,Brazil, the Netherlands, Ireland and Belgium - where we aim to achieve significant absolutegrowth;Diversification markets - Austria, Switzerland, Russia, Canada, Poland, Czech Republic,Hungary and China - where the objective is to increase market share, while strengthening thenotoriety of Destination Portugal.
The countries making direct competition to Portugal is Spain. Spain has the same climate, culture very similar, is much larger geographically, has more investors and thus have cheaper prices Because the main markets for Portugal are totally dominated by Spain: United Kingdom Germany HolandaPortugal 2 0,8 0,5Spain 15 10 2,5million tourists Is increasingly difficult for Portugal to compete on price and quality.
In my opinion, firs time Portugal need to improve human resources and good investors, broaden the range of promotional packages, the inter-linking the entire transportation network, hotels, restaurants and cultural activities.Portugal has adopted a strategy of targeted regions. In each area that has very different characteristics.If Spain has the power to the tourist masses, Portugal must work with niche markets worldwide.Opt for a policy of differentiating radical.Explore opposite segments, as 6 stars and the low cost.