Rohit Talwar - Horizon 2020 Presentation to Estonia International Tourism Conference 29 09 11 - masterdoc


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Rohit Talwar - Horizon 2020 Presentation to Estonia International Tourism Conference 29 09 11 - masterdoc

  1. 1. Horizon 2020 – Key Travel Industry Opportunities and Trends Rohit Talwar CEO – Fast Future www.fastfuture.com6th International Tourism Conference Tallinn Estonia September 29th 2011
  2. 2. ContentsPresentation p3About Fast Future p 57Background Materials p 67Image Sources p 156
  3. 3. Hotels 2020 – Objectives• Identify key drivers of change for the globally branded hotel sector over the next decade• Examine the implications for:  Hotel strategy  Brand portfolio  Business models  Customer targeting  Innovation
  4. 4. Transformational Change? It’s Only Just Begun
  5. 5. What I Want – When I Want
  6. 6. Holographic Laptops
  7. 7. Personalization
  8. 8. Demographic Destinies 2 billion more people in 40 years –Demographics is Driving Economics 448 739 691 5231 344 1998 4157 729 1030 585 2010 2050 Source : United Nations
  9. 9. Tomorrow’s Traveler - Demographics• Over 60‟s in developed economies to rise from 22- 33% from 2009 and 2050.• In developing world, from 9 to 20%• Global retirement market 2010-2020 could grow from $28 - $46 Tn• Global middle class could rise from 430M to 1.2 Bn (2000 – 2030)
  10. 10. Life Redefined – Lifespans are IncreasingUnder 50’s have 90%chance of living to 100.Aubrey de Grey suggestswe could live to 500 or 1000What are the health,consumption and resourceimplications?What kind of opportunitieswill be created?
  11. 11. Tomorrow’s Traveler – Spending Patterns• By 2020, Asian consumers could account for over 40% of global middle class consumption• By 2014 female wealth could reach $18 trillion• Females could control 70% of global consumer spending
  12. 12. The Asian middle classes will make up the largest share of international travel 60 54 50 40 30 25 21 20 10 1600 Respondents 0 Strongly agree Agree Disagree Strongly disagree
  13. 13. Traveller Behaviours Too Busy To Care Complex Lives, Pressurised Finances Craving Simplicity Wealthy and Hard to Please
  14. 14. SustainabilityEnvironmental considerations will play an increasing role inthe choice of business and leisure hotels. 606 Respondents
  15. 15. Crowne Plaza Copenhagen Towers –Solar Power, Geothermal Well, Eco-rooms
  16. 16. Tomorrow’s Traveler – Technology• Number of mobile subscribers could rise from 4Bn to 5Bn 2009-2015• Mobile data traffic to rise 300- fold by 2015 (Nokia).• By 2020 the range and nature of interaction technologies / customer „touch points‟ will expand dramatically.• „Go nowhere‟ gamers• Personal genetic profiles
  17. 17. Customers will increasingly use social media andcollective intelligence travel services (like Dopplr) to define the desired ‘product’ for a temporary self- forming group. 50 45 45 45 40 35 30 25 20 15 9 10 5 0601 Respondents 0 Strongly agree Agree Disagree Strongly disagree
  18. 18. Hotels will need to develop strong social media listening skills tounderstand how customer needs and perceptions of brands and servicequality are truly evolving and to develop service propositions, marketingmessages, and pricing solutions that reflect the needs of an increasingly diverse customer base. 60 54 50 42 40 30 20 10 4 0597 Respondents 0 Strongly agree Agree Disagree Strongly disagree
  19. 19. Hotel Categorization may Need to Evolve to Focus More on Service Than Facilities
  20. 20. Traveler motivations will become increasingly fragmented and diverse and harder to segment into clearly definable customer groupings604 Respondents
  21. 21. Hotel guests will expect their stay to be personalized around a set of choices they make at the time of booking or prior to arrival 60 50 50 42 40 30 20 10 7 1602 Respondents 0 Strongly agree Agree Disagree Strongly disagree
  22. 22. The Emergence of Personalized Service Spectrums86% agreed that by 2020,personalization will have beenembraced wholeheartedly bythe sector and that „customerswill have the ability to choosethe size of room, type of bed,amenities, audio-visualfacilities, business equipment,etc. on booking and payaccordingly‟.
  23. 23. Pricing In a highly automated world, there will be a range of customers at every price point who are willing to pay for personal service610 Respondents
  24. 24. Staff and Service Highly trained staff backed up by technology will be key to delivering personalized service and experiences605 Respondents
  25. 25. Estonia has Strong Economic and Tourism Goals
  26. 26. … and Success in Key Sectors e.g. The Cruise Industry
  27. 27. Ranked as an Innovation Follower (EU Innovation Index 2010) Source: PRO INNO EUROPE Innovation Performance 2010
  28. 28. Travel and TourismCompetitiveness is Improving th
  29. 29. Strong Price Competitiveness th
  30. 30. Highly Ranked Tourism Infrastructure th
  31. 31. A Rising rd Economic Star 33Competitiveness 23 rd 30 th Innovation Business Environment
  32. 32. Innovation –‘Hotel Viru and the KGB’
  33. 33. Sustainable Tourism
  34. 34. Promoting Tourism Through Partnerships
  35. 35. So where are the Opportunities?
  36. 36. Community Engagement - Aruba
  37. 37. City Regeneration - Malmo
  38. 38. City Branding - Berlin
  39. 39. Sydney ‘Vivid’Joined up Thinking
  40. 40. Adelaide Convention Centre Creating Experiences source: Adelaide Convention Centre
  41. 41. Business Events
  42. 42. Using Social Media
  43. 43. Agri-Tourism –25% Income boost to Farmers
  44. 44. Market Targeting
  45. 45. Leveraging Natural Assets
  46. 46. Tallinn as one of Europe’s Capital’s of Culture 2011
  47. 47. Museum Partnerships
  48. 48. Art Exhibits
  49. 49. Hi-Tech Estonia
  50. 50. Medical Tourism
  51. 51. Gourmet Dining
  52. 52. Distinctive Experiences
  53. 53. Create Tolerance of Uncertainty
  54. 54. Partner and Be Magnetic
  55. 55. Conclusion Designing Your Future• All to Play for• Think Partnership• Curiosity and Magnetism are Key• Experiment
  56. 56. Thank YouRohit TalwarCEOFast Futurerohit@fastfuture.comTel +44 (0)20 8830 0766Mob +44 (0)7973 405145Twitter http://widerhorizons.wordpress.comSignup for our newsletters / Download past editions at www.fastfuture.comWatch a short video of Rohit at the Hotels 2020: Beyond Segmentation Report at
  57. 57. About Fast Future 57
  58. 58. Fast Future – Travel and Meetings Industry Services• Briefings and workshops for executive management and boards of hotels, venues, CVB‟s and associations• Customised research on trends, technologies and new markets• Development of strategies and business plans• „Deep dives‟ on key trends and technology developments• Consultancy and workshop facilitation on innovation and new business models
  59. 59. Fast Future• Research, consulting, speaking, leadership• 5-20 year horizon - focus on ideas, developments, people, trends and forces shaping the future• Clients – Industry Associations – ICCA, ASAE, PCMA, MPI – Corporates - GE, Nokia, Pepsi, IBM, Intel, Samsung, GSK, SAP, Orange, O2, E&Y, KPMG, Amadeus, Sabre, Travelport, Travelex, ING, Santander, Barclays, Citibank, DeutscheBank – Governments - Dubai, Finland, Nigeria, Singapore, UK, US – Convention Bureaus – Seoul, Sydney, London, San Francisco, Toronto, Abu Dhabi, Durban, Athens, Slovenia, Copenhagen – Convention Centres – Melbourne, Adelaide, Qatar, QEIICC – Hotels - Accor Group, Preferred, – Intercontinental – Congrex, Kenes – Aeroports de Paris / Schiphol Group
  60. 60. Convention 2020• Global strategic foresight study to help the meetings industry prepare for the decade ahead - Industry-wide sponsors• Multiple outputs Nov 2009 – December 2011• Current studies on future strategies for venues and destinations
  61. 61. Future Convention Cities Initiative• Cities that want to be at the leading edge of delivering business events• Focus on maximising long term economic benefit of events• Research, sharing of expertise and best practices• Meet four time a year• Initiated and co-ordinated by Fast Future
  62. 62. Rohit Talwar• Global futurist and founder of Fast Future Research.• Award winning speaker on future insights and strategic innovation – addressing leadership audiences in 40 countries on 5 continents• Author of Designing Your Future – Published 08/2008• Profiled by UK‟s Independent Newspaper as one of the Top 10 Global Future Thinkers• Led futures research, scenario planning and strategic consultancy projects for clients in telecommunications, technology, pharmaceuticals, banking, travel and tourism, environment, food and government sectors• Clients include 3M, BBC, BT, BAe, Bayer, Chloride, DTC De Beers, DHL, EADS, Electrolux, E&Y, GE, Hoover, Hyundai, IBM, ING, Intel, KPMG, M&S, Nakheel, Nokia, Nomura, Novartis, OECD, Orange, Panasonic, Pfizer, PwC, Samsung, Shell, Siemens, Symbian, Yell , numerous international associations and governments agencies in the US, UK, Finland, Dubai, Nigeria, Saudi Arabia and Singapore.• To receive Fast Future‟s newsletters please email
  63. 63. Designing Your Future Key Trends, Challenges and Choices Facing Association and Nonprofit Leaders• 50 key trends• 100 emerging trends• 10 major patterns of change• Key challenges and choices for leaders• Strategic decision making framework• Scenarios for 2012• Key futures tools and techniques• Published August 2008• Price £49.95 / €54.95/ $69.95• Email invoice request to
  64. 64. Our Services Bespoke research; Identification & Analysis of Future Trends, Drivers & Shocks Public Speaking, In- Company Briefings, Accelerated Scenario Seminars and Planning, Timelining & Workshops Future MappingPersonal Futuring forLeaders and Leadership Expert Consultations &Teams Futures Think Tanks Identification of Design & Facilitation of Opportunities for Innovation, Incubation Innovation and Strategic & Venturing Programmes Strategy Creation & Investment Development of Implementation Roadmaps
  65. 65. Example Projects• Public and private client research e.g. : – Convention 2020 – the Future of Business Events – Future Convention Cities Initiative – Maximising Long-term Economic Impact of Events – One Step Beyond – Future trends and challenges for the events industry – Hotels 2020: Beyond Segmentation – Future Hotel Strategies – The Future of Travel and Tourism in the Middle East – a Vision to 2020 – Future of Travel and Tourism Investment in Saudi Arabia – Aviation and Airports e.g. Aviation 2030 – Scenario Projects – Migration 2030, Future of Narcotics, Chemical Sector, Family 2030 – Scenarios for the global economy for 2030 and the implications for migration – Designing Your Future (Published August 2008) – book written for the American Society of Association Executives & The Center for Association Leadership – Global Economies – e.g. The Future of China – the Path to 2020 – The Shape of Jobs to Come – Emerging Science and Technology Sectors and Careers – Winning in India and China• Strategic advice to industry players• Confidential advisory and coaching services to CEOs and top teams• Public speaking at public conferences and in-company events• Future thinking workshops and retreats
  66. 66. Example Clients
  67. 67. Background Materials
  68. 68. An Economic OverviewGDP• According to the IMF the GDP at current prices in Estonia was reported at 214.83 billions euros in 2009, in 2015, Estonias GDP at current prices is expected to be 267.07 billions Euro.• In 2009, Estonias economy share of world total GDP, adjusted by Purchasing Power Parity, was 0.04 percent. In 2015, Estonias share is forecasted to be 0.03 percent. (1)• The Estonian economy has been predicted to grow by 5.9% this year. (2)Source 1: Trading Economics, 2: Bloomberg, May, 2011,
  69. 69. An Economic Overview
  70. 70. An Economic OverviewWorld Bank Data• GDP per capita, (current US$) 2009 - $14,238 2008 - $17,541 2007 - $15,938 2006 - $12,359• GNI per capita, Atlas method (current US$) 2009 - $14,060 2008 - $14,410 2007 - $13,210 2006 - $11,500• Current account balance, (BoP,current US$) 2009 - $893,212,362 2008 - $ -2,339,984,968 2007 - $ -3,720,827,433 2006 - $ -2,585,466,594 Source: The World Bank,
  71. 71. An Economic Overview Unemployment - 1st Quarter of 2011: 14.4%, - down from 16.9% in 2010. Unemployment %18 16.916 13.6 Unemployment % 13.814 12.2 12.612 10.3 10 9.7 9.9 9.6 9.810 7.9 8 5.9 6 4.7 5.5 4 2 0Source: Statistics Estonia, July 2011,
  72. 72. An Economic OverviewDebt levels• Estonia has kept its budget deficit below the EU limit of 3 percent of GDP every year since joining the bloc in 2004.• Estonia implemented austerity measures equal to 9 percent of GDP in 2009, preventing the budget gap from ballooning and keeping the country on course to adopt the euro.• Estonia had the EU‟s only budget surplus, equal to 0.1 percent of GDP, and lowest public debt in 2010, which totalled 6.6 percent, as it prepared to become the 17th euro member on the 1st of January 2011.• The country has no outstanding bonds and has no plans to sell any.• In terms of credit risk the country has jumped from the third-riskiest EU member in 2009, to amongst the 10 best in 2011. Source: Bloomberg Business Week, June 2011, rewarded-amid-greek-woes.html
  73. 73. Macro Statistics - Czech republic,Slovakia, Romania, Estonia, Latvia & Lithuania Growth % Productivity Business Environment Growth of Real Labour Global Rank Regional Rank GDP 2011 – Productivity (out of 82) (Out of 16)* 2030 % change Growth 2011- 2030 % change 2006- 2011- 2006- 2011- Annual av. 2010 2015 2010 2015 annual av. Czech Rep. 2.2 2.7 27 29 1 2 Estonia 3.5 4.1 28 30 2 3 Latvia 3.6 3.8 45 47 8 9 Lithuania 3.4 3.6 43 46 7 8 Romania 3.4 3.4 50 50 10 10 Slovakia 3.4 3.6 31 30 4 3 * Azerbaijan, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Kazakhstan, Latvia, Lithuania, Poland, Romania, Russia, Serbia, Slovakia, Slovenia and Ukraine Economist Intelligence Unit,
  74. 74. Competitiveness and Innovation Rankings World Economic INSEAD – Global Innovation for Forum – Global Innovation Index Development Competitiveness 2011 Rankings Report 2010-2011 – Report 2011-2012 (out of 125) [2] Innovation Rankings Capacity Rankings (out of 142) [1] (out of 130) [3] Czech Rep. 38 27 32 Estonia 33 23 25 Latvia 64 36 30 Lithuania 44 40 26 Romania 77 50 55 Slovakia 69 37 36Source 1: World Economic Forum, Global Competitiveness Report 2011-2012, 2: INSEAD , Global Innovation Index 2011, 3: Innovation for Development Report 2010-2011, ICI Rankings,
  75. 75. Estonia’s Ambition • Prime Minister Andrus Ansip has set the goal for Estonia to enter the list of Europe‟s top 5 richest countries by 2020. • To achieve this is estimated that Estonia‟s average GDP growth rate would have to be at least 8%.Source: Baltic News Network, February 2011,
  76. 76. Future Economic PredictionsPositive Future Scenario from Estonia‟s Ministry Finance and Government Office Source: National Reform Programme „Estonia 2020‟, April 2011,
  77. 77. Future Economic Concerns• Potential Eurozone break up - The London-based Centre for Economics and Business Research has predicted that the euro zone could break up by 2013 as budget cuts slow growth in southern Europe and Germany balks at continuing to support Greece.Source: Bloomberg Business Week, June 2011,
  78. 78. Future Economic Concerns • Demographic Changes - Estonia is similarly afflicted by the same trend in population decline that can be witnessed across Europe. This could have a serious impact upon the economy as the working-age population decreases, creating the need to ensure higher employment rates amongst Estonian adults. Working-age Decrease from Decrease in population (15- 2010 working-age 64) population % 2010 908 000 - - 2020 843 000 - 65 000 -7 % 2030 801 000 - 107 000 - 12% Source: Eurostat, European Commission‟s Ageing ReportSource: National Reform Programme „Estonia 2020‟, April 2011,
  79. 79. The Growth of the Estonian Travel Industry
  80. 80. The Growth of the Estonian Travel Industry Overnights of foreign and domestic tourists at accommodation establishments of Estonia (incl. health spas), 1994-2006 (thous.). Source: Statistics Estonia. 4543460044004200 41114000 37583800 overnights of domestic tourists 15233600 1129 overnights of foreign tourists34003200 3085 10113000 26962800 2537 81726002400 2211 6982200 626 19352000 1780 6131800 15961600 606 1349 1404 2982 3020 5931400 2747 5171200 1117 518 22681000 596 1998 1911800 523 1598600 1329 1079 1187400 753 886 594200 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Source: Visit Estonia, Tourism in Estonia 1993-2006 Key Indicators,
  81. 81. The Growth of the Estonian Travel Industry• There has been a steady rise in the number of both domestic and foreign visitors in the Estonian travel and tourism industry over the past decade.• Whilst tourism in Europe stagnated during the 2008 economic crisis (according to the UNWTO, tourism to European countries increased by just 0.3%), Estonia still achieved a 3.7% increase in tourist arrivals in 2008.• However in 2009 Estonian travel and tourist industry followed the Europe- wide trend of decline due to the economic crisis.• In 2009, 1.38 million1 foreign tourists stayed overnight at the accommodation establishments of Estonia (-3.7% compared to 2008). The number of nights spent was 2.74 million (-6.5% compared to 2008). Foreign overnights on holiday trips decreased by 5% and overnights on business trips decreased by 4%, whereas overnights on other trips (incl. spa and health treatment trips) decreased by 13%.Source: Visit Estonia, Tourism in Estonia in 2009, March 2010,
  82. 82. The Growth of the Estonian Travel Industry • In addition to the 1.38 million foreign tourists who stayed at the accommodation establishments, about 0.5 million stayed with friends or relatives or at their own apartments. The total number of foreign overnight visitors in 2009 was therefore about 1.9 million (the same as in 2007). (1) • In 2010, 1.56 million foreign tourists stayed overnight at accommodation establishments in Estonia. Their number increased by 13%, or by 183,412 compared with 2009. Foreign overnights exceeded the pre-crisis level (i.e. 2008) by as much as 9% and the previous record level (from 2006) by 6%. • In 2010, 837,811 domestic tourists stayed overnight at the accommodation establishments of Estonia. Their number increased by 9% compared with the respective period of 2009. (2)Source 1: Visit Estonia, Tourism in Estonia in 2009, March 2010, 2: Visit Estonia, Tourism in Estonia in 2010, March 2011,
  83. 83. Source: Tourism in Estonia 2010, Visit Estonia, 16/03/2011, 27/06/2011
  84. 84. The Growth of the Estonian Travel Industry• In the first quarter of 2011, 259,024 foreign tourists stayed overnight in the accommodation establishments of Estonia. Their number increased by 16.5% or by 36,609 compared with the same period last year.• The number of nights spent was 581,824 (19% up on the same period of 2010). It is worth noting that in the first quarter of 2010, foreign overnights also increased by 19% compared with the same period of 2009.• Thus, in 2011 inbound tourism to Estonia has increased significantly compared with 2010 which was already a record year for Estonia.Source: Visit Estonia, Tourism in Estonia in 2011 (1st quarter), May 2011,
  85. 85. The Cruise Industry
  86. 86. The Cruise Industry • The majority of foreign tourists into Estonia arrive by ship. • In 2009, almost 7.26 million passengers arrived and departed through the Port of Tallinn. This represents an increase of 0.1% on 2008, which itself was a record year. • The number of cruise passengers visiting Tallinn for one day increased by 10.6% (from 375,578 in 2008 to 415,575 in 2009). • The number of cruise ships sailing on the Baltic Sea increased and several ships were also larger than in the previous years. • Of the cruise passengers visiting Tallinn, 24% were from North America, 18% from the United Kingdom, 18% from Germany, 10% from Spain and 6% from Italy.Source: Visit Estonia, Tourism in Estonia in 2009, March 2010,
  87. 87. The Cruise Industry• With 305 cruise ship calls, Tallinn was the third most visited destination on the Baltic Sea, following St. Petersburg and Copenhagen (which attracted 331 and 321 calls, respectively).(1)• In 2011, The port of Tallinn received 60 861 cruise passengers in the first month of the traditional cruise season that kicked off on 1 May, which marks a year-on-year increase of 32.8%.• Since the beginning of the year 2.9 million passengers have passed through the port of Tallinn, an increase of 7.2% in annual comparison.(2) Source 1: Visit Estonia, Tourism in Estonia in 2009, March 2010, Source 2: Visit Estonia, June 2011,
  88. 88. Estonia’s Place in the Tourism World Rankings
  89. 89. Estonia’s Place in the Tourism World RankingsWorld Economic Forum – Global Travel and Tourism Competitiveness Index 2011• Globally Estonia ranked 25th in 2011, up from 27th in 2009.• It is the first emerging/developed economy to appear in the top 30 of the table, followed closely by Barbados at 28, and the United Arab Emirates at 30.• Regionally in Europe – Estonia ranks 18th.- Compared to Estonia‟s regional rivals – Sweden – 5th, Finland – 12th, Latvia – 30th, Russia -33rd. Source: World Economic Forum, The Travel and Tourism Competitiveness Report 2011,
  90. 90. Estonia’s Place in the Tourism World Rankings• Globally Estonia is ranked - 54th for its air infrastructure, - 17th for its port infrastructure, - 13th for its ICT infrastructure, - 11th for its tourism infrastructure (including 14th for its hotel rooms and 1st for the presence of rental cars), - 44th in terms of the price competitiveness of the tourism and travel industry (including 19th in the hotel price index). Source: World Economic Forum, The Travel and Tourism Competitiveness Report 2011,
  91. 91. The Importance of Travel to Estonia
  92. 92. The Economic Contribution• GDP: Direct Contribution The direct contribution of Travel &Tourism to GDP is expected to be EUR0.6bn (3.5% of total GDP) in 2011. This rising by 3.4% pa to EUR0.8bn (3.2%) in 2021 (in constant 2011 prices).• GDP: Total Contribution The total contribution of Travel &Tourism to GDP, including its wider economic impacts, is forecast to rise by 3.3% pa from EUR2.1bn (13.6% of GDP) in 2011 to EUR3.0bn (12.2%) by 2021. Source: The World Travel and Tourism Council,, Travel and Tourism Economic Impact 2011 – Estonia,
  93. 93. The Economic Contribution• Visitor Exports Travel & Tourism visitor exports are expected to generate EUR1.2bn (9.9% of total exports) in 2011, growing by 6.2% pa (in nominal terms) to EUR1.8bn (8.8%) in 2021.• Investment Travel & Tourism investment is estimated at EUR0.2bn or 6.6% of total investment in 2011. It should rise by 4.9% pa to reach EUR0.3bn (or 6.0%) of total investment in 2021. Source: The World Travel and Tourism Council,, Travel and Tourism Economic Impact 2011 – Estonia,
  94. 94. Contribution to Employment • Employment: Direct Contribution Travel & Tourism is expected to support directly 21,000 jobs (3.6% of total employment) in 2011, remaining unchanged at 21,000 jobs (3.4%) by 2021. • Employment: Total Contribution The total contribution of Travel & Tourism to employment, including jobs indirectly supported by the industry, is forecast to fall by 0.2% pa from 77,000 jobs (13.3% of total employment) in 2011 to 76,000 jobs (12.4%) by 2021. (1) • In addition to this the tourist industry is a boon to female employment, as nearly three quarters of those employed in hotels and restaurants are women. (2)Source 1: Source: The World Travel and Tourism Council,, Travel and Tourism Economic Impact 2011 – Estonia, 2: Riigi Teataja, 24/11/2006 29/06/2011(Translated using Google Translate)
  95. 95. The Economic ContributionSource: The World Travel and Tourism Council,, Travel and Tourism Economic Impact 2011 – Estonia,
  96. 96. The Economic Contribution• Leisure travel spending (inbound and domestic and domestic) is expected to generate 77% of direct travel and tourism revenue GDP in 2011, compared with 23% for business travel spending.• Leisure travel spending is expected to total EUR 1.2bn in 2011, projected to rise to EUR 1.8bn in 2021.• Business travel spending is expected to total EUR 0.4bn in 2011, and is projected to be EUR 0.4bn in 2021. Source: The World Travel and Tourism Council, Travel and Tourism Economic Impact 2011 – Estonia,
  97. 97. The Economic ContributionSource: The World Travel and Tourism Council, Travel and Tourism Economic Impact 2011 – Estonia,
  98. 98. The Economic Contribution• Domestic travel spending is expected to generate 22.3% of direct travel and tourism GDP in 2011, compared with 77.7% for visitor exports (foreign visitor spending or international tourism receipts).• Domestic travel spending is expected to total EUR 0.3bn in 2011, and is projected to rise to EUR 0.4bn in 2021.• Visitor exports are expected to total EUR 1.2bn in 2011, and is projected to rise to EUR 1.8bn in 2021. Source: The World Travel and Tourism Council, Travel and Tourism Economic Impact 2011 – Estonia,
  99. 99. The State of Travel andTourism as seen in Estonia’s National TourismDevelopment Plan, 2007-2013
  100. 100. Strengths • Tallinn, the capital; • Cultural heritage (medieval town centers, castles, manor houses, national handicraft, folk festivals, practices, etc.); • the natural environment (landscapes, waterways, wetlands, nature reserves, parks); • North and East of Estonia (north coast, Lahemaa National Park, Kõrvemaa Tuhala and nature reserves, castles and manor architecture, the gateway to Russia); • Western Estonia and Saaremaa and Hiiumaa (landscape, beach holidays, health resort, Pärnu); • South-Estonia (kuppelmaastik, lakes, cultural events, national parks, winter sports, religious ethnic Setu people and the old area of Tartu); • modern and thriving spa and wellness services; • good transport links with neighbouring countries.Source: Riigi Teataja, 24/11/2006 29/06/2011(Translated using Google Translate)
  101. 101. Weaknesses • Lack of awareness of Estonia as a travel destination; • one-sidedness of tourism products; • high dependence on the Finnish market; • seasonality; • the concentration of the major tourist centres in cities such as Tallinn and Pärnu; • uneven quality of tourism services; • inadequate transport facilities; • lack of cooperation between public, private and third sectors.Source: Riigi Teataja, 24/11/2006 29/06/2011(Translated using Google Translate)
  102. 102. The State of Estonia’s Meetings Industry
  103. 103. The State of Estonia’s Meetings Industry• For the past decade Estonia and the rest of the Baltic states have benefited from the global growth of the conference organising business.• The Baltic States are still seen as a new and affordable destination for many people and organisations to hold their events.• Conferences in Estonia have been varied and focused on a range of topics including security and IT security, tourism, finance, construction and real estate, service quality, insurance, and development .• They have also been able to attract high-level keynote speakers, including the former US president Bill Clinton who spoke at the Economy Forum in 2002. Source: The Baltic Times, September 2010,
  104. 104. Estonia’s Meetings Industry - Trends Number of ICCA Meetings Held in Estonia Per Year5045 46 4340 3935 3430 29 2725 25 Number of ICCA 2320 Meetings Held in15 Estonia Per Year 1410 7 7 5 0Source: ICCA, The Association Meetings Market 2000-2009, July 2010, Convention Bureau, June 2011,
  105. 105. Estonia’s Meetings Industry - Trends Number of ICCA Meetings Held In Tallinn Per Year4035 3530 27 2825 2220 20 21 17 17 Number of Meetings15 Held In Tallinn Per Year10 9 5 3 3 0Source: ICCA, The Association Meetings Market 2000-2009, July 2010, Convention Bureau, June 2011,
  106. 106. Estonia’s Meetings Industry – Regional Trends Number of ICCA Meetings Held Per Year Per Country 200 180 160 140 Estonia 120 Finland 100 Latvia 80 Lithuania 60 Russia Sweden 40 20 0 2007 2008 2009Source: ICCA, The Association Meetings Market 2000-2009, July 2010,
  107. 107. Estonia’s Meetings Industry – Regional Trends Number of ICCA Meetings Held Per Year Per City120100 80 Helsinki Riga 60 Stockholm St Petersburg 40 Tallinn Vilnius 20 0 2007 2008 2009 Source: ICCA, The Association Meetings Market 2000-2009, July 2010,
  108. 108. The State of Estonia’s Meetings Industry Country Rankings: • Estonia continues to place well in the International Congress and Convention Associations rankings of top meeting destinations. • A new report by the ICCA ranked Estonia in 46th position as a global meetings destination, with 43 association meetings held in the country in 2010. • The ranking makes Estonia the number one ICCA destination country in the Baltic States.(1) Year Rank (2) 2010 46 2009 40 2008 43 2007 48Source 1: Estonian Convention Bureau, June 2011, 2: Estonian Convention Bureau, May 2010, and Travel Magazine, September 2009,
  109. 109. The State of Estonia’s Meetings Industry • Among the 340 cities covered by the rankings, Estonias capital Tallinn comes in 65th place with 28 international conferences held last year. Although this marks a drop in the rankings it still shows Tallinn is holding onto the gains it has made since 2007 when it was ranked 83rd. • The university city of Tartu has also climbed the city rankings list, jumping from 171th place in 2009 to 120th in 2010, hosting 15 events in 2010 compared to 10 in 2009.(1) The Performance of Tallinn in the ICCA City Rankings (2) Year Rank 2010 65 2009 44 2008 65 2007 83Source 1: Estonian Convention Bureau, June 2011, 2: Estonian Convention Bureau, May 2010, and Travel Magazine, September 2009,
  110. 110. The State of Estonia’s Meetings IndustryNotable future conferences to be held in Estonia –• The International Association of Science Parks will hold its 2012 conference in the Estonian capital Tallinn. The 2012 conference is expected to bring together the leaders of 800 science parks worldwide. (1)• Tallinn Airport has been chosen to host the 7th Routes Europe, an annual gathering of air service decision makers for the European region. Around 750 delegates will be expected to take part in the forum.(2)• A conference of the International Federation for European Law (FIDE) will take place in Estonia in 2012, the first country from Eastern Europe to host the conference. The event, held every two years, brings together more than 500 lawyers from all over the world. Furthermore Tallinn will serve as the capital of European law for 2012, the first city to bear this title. (3) Source 1: Estonian Convention Bureau, May 2010, estonia-in-2012/ Source 2: Estonian Convention Bureau, June 2011, Source 3: Estonian Convention Bureau, June 2010,
  111. 111. Innovation –‘Hotel Viru and the KGB’
  112. 112. Innovations - ‘Hotel Viru and the KGB’• Capitalising upon Estonia‟s rich history the first hotel museum in Estonia called „Hotel Viru and the KGB‟ has officially opened at Sokos Hotel Viru as part of this year‟s European Capital of Culture.• The museum located on the 23rd floor of the hotel can hold up to 25 visitors at a time, who will be able to enter the museum through the lobby of the hotel.• In addition to the free entry to the museum, visitors will also be able to enjoy the free thematic bus tours, riding in Soviet era bus, lasting for 30 minute that begin and end in front of Sokos Hotel Viru. Source: Estonian Convention Bureau, January 2011,
  113. 113. Innovations - ‘Hotel Viru and the KGB’• Anu Soosaar, the Managing Director of Sokos Hotel Viru – “Hotel Viru has been an undisputed landmark of Tallinn and the source of uncountable legends for almost 40 years now” “The idea of opening up a museum has been pondered over for more than ten years due to our visitors‟ extreme curiosity about the activities of the KGB in the hotel and the room on the 23rd floor of the hotel that the organisation left behind. We believe that now that Tallinn has become an European Capital of Culture is the perfect time to tell the story of Hotel Viru, the KGB‟s part in this story and speak about the entire era in general as it can give the guests who have travelled great distances to visit us the chance to get a sense of our past.”Source: Estonian Convention Bureau, January 2011,
  114. 114. Promoting Tourism Through Partnerships• Developing Cultural Tourism as a joint network in Capitals of Culture 2011 is a project built by The Centre of Expertise Tourism (OSKE) of Turku Touring together with the Turku 2011- and Tallinn 2011- foundations.• The aim of the project is to unite the operators of culture and tourism in Turku and Tallinn and create new and more customer friendly services and product combinations.• The main partner of the project is Turku Touring/city of Turku, additional partners are Turku 2011 – foundation, Tallinn 2011 – foundation and the culture organisations of the city of Tallinn. The project got started at the beginning of 2010 and will end 30.8.2012 and it is funded by EU. Source: Turku Touring, July 2010
  115. 115. Promoting Tourism Through Partnerships• The targets of the project:• To join the operators of culture and tourism in Turku and Tallinn in order to create more customer orientated services and product combinations.• To build up a permanent network between tourism and culture operators in the Turku and Tallinn regions both inside the cities and crossing the borders.• To increase the accessibility and the fame of the joint product combinations.• To increase the know-how of the operators and to build up a permanent route of learning and know-how which can be used even after the project• To create an identical and good quality service culture in Turku and Tallinn regions by increasing the knowledge of the service providers in accessibility and in customer-orientated approach. Source: Turku Touring, July 2010
  116. 116. Estonia’s Natural Assets
  117. 117. Estonia’s Natural Assets• Estonia is internationally renowned for its natural beauty and its national parks including Lahemaa and Soomaa National Park.• 54% of Estonia‟s territory is covered by forest and other wooded land, the 6th highest percentage of EU member states. (1)• In the WEF Global Travel and Tourism Competitiveness Index 2011 Estonia is ranked 24th globally for the quality of its natural environment, 20th for its protected areas and 75th for its World Heritage natural sites. (2) Source 1: Welcome to Estonia, June 2011, Source 2: World Economic Forum, The Travel and Tourism Competitiveness Report 2011,
  118. 118. Utilising Nature • Estonia has been able to successfully utilise its natural assets to attract both domestic and foreign tourists. With many of the national parks offering a variety of outdoor experiences such as kayaking, wildlife watching, berry picking and ice fishing.Source: Soomaa National Park,
  119. 119. Sustainable Tourism• In the future Estonia can pursue Eco-Tourism to help support environmental and economic goals.• Tourism can be utilised to help support the conservation of rare and endangered Estonian plant and wildlife, support the local economy through job creation and create an opportunity for tourism entrepreneurism to flourish. (1)• Estonian national parks can utilise the surrounding environment to offer innovative tourism experiences such as skating trips on the frozen sea or dugout-canoe building. (2) Source 1: Aivar Ruukel, Sustainable Tourism Development Strategy: the Case of Soomaa National Park Estonia, June 2010, Source 2: Estonian Ecotourism Cluster, Marketing Innovation: The Case of Estonian Nature Tourism, 2009,
  120. 120. Sustainable TourismSource: Estonian Ecotourism Cluster, Marketing Innovation: The Case of Estonian Nature Tourism, 2009,
  121. 121. Sustainable Tourism
  122. 122. Sustainable TourismSource: Estonian Ecotourism Cluster, Marketing Innovation: The Case of Estonian Nature Tourism, 2009,
  123. 123. Bogshoeing
  124. 124. Bogshoeing • One of the more unique offerings is Bogshoeing, where the specialised footwear allows the wearer to freely explore Estonia‟s untouched wetlands. • Bogshoeing has been suggested by the Lonely Planet travel guide as one of the greatest activities on offer in Estonia.Source: Soomaa National Park,
  125. 125. Sustainable Tourism• The Estonian Eco-Tourism sector has also embraced new social media to raise its profile.• Websites such as Facebook, Flickr and Youtube have all been utilised for users to share their experiences in Estonia‟s natural spaces and to help promote Estonia as a Eco-Tourist destination. Source: Estonian Ecotourism Cluster, Marketing Innovation: The Case of Estonian Nature Tourism, 2009,
  126. 126. Sustainable Tourism • Future Challenges - Eco-Tourism: Conservation vs. Hunting • The Estonian Ecotourism Cluster has opposed the decision by the Estonian Ministry of the Environment to issue additional licences for wolf hunting, as this could result in the death of more than half of the Estonian wolf population, currently numbering 270. 140 licences were issued for the 2009/2010 hunting season. • The Estonian Ecotourism Cluster‟s 2009 annual strategy argued that Estonia‟s eco-tourism industry suffered in comparison to their regional rivals in Northern and Eastern Europe due to the relative smaller numbers of many species of larger predators such as wolves, bears, lynxes, that are popular with tourists.Source: Parimusmatkad, January 2010,
  127. 127. Future strategies
  128. 128. Main Target MarketsAs set out in the Estonian Tourism Development Plan – 2007-2013.• Finland• Sweden• Russia• Norway• Germany• LatviaOverall shows a primary regional focus. Source: Riigi Teataja, 24/11/2006 29/06/2011(Translated using Google Translate)
  129. 129. Emerging Target Markets• Great Britain• Denmark• Italy• Denmark• The Netherlands• Spain• France• Poland• The United States• Japan Source: Riigi Teataja, 24/11/2006 29/06/2011 (Translated using Google Translate)
  130. 130. China as a Target Market
  131. 131. China as a Target Market• The rise of China on the world stage and the growth in disposable income of its vast population means that it has become valuable target market for the travel and tourist industry.• The share of Chinese tourists amongst visiting tourists to Estonia has risen year to year.• The latest visa statistics from Estonias embassy in Peking and main consulate in Shanghai show record numbers of visa applications processed in the first five months of the 2011.• In June 2011 Enterprise Estonias tourism development centre held an informational seminar in Shanghai to introduce Estonia to Chinas travel agents, journalists, and airline representatives with the objective of raising the general awareness of Estonia in China and giving Chinese tourists an overview of goods and services that Estonia offers. Source: Estonia Public Broadcasting, June 2011,
  132. 132. China as a Target Market• Bilateral relations have been given a boost by last years EXPO exhibition in Shanghai which significantly enlarged Chinese awareness of Estonia. The Estonian pavilion was visited by 2.23 million people, 99 percent of them Chinese.• The number of Chinese businesses which have visited Estonia has risen noticeably thanks to widening business relations. Also increasing is cooperation between Estonian and Chinese universities, resulting in the running of joint summer courses in Estonia. Source: Estonia Public Broadcasting, June 2011,
  133. 133. Tallinn as one of Europe’s Capital’s of Culture 2011
  134. 134. Tallinn - European Capital of Culture• Tallinn has been chosen as one of Europe‟s Capital‟s of Culture 2011. The theme of the year long event is Stories of the Seashore, highlighting the legends and inspiration that the sea has given to countless generations of Estonians. Source: Tallinn 2011,
  135. 135. Tallinn - European Capital of Culture• The largest storytelling event in Estonia‟s history. Writers, musicians, artists and actors will tell, paint, sing and act tales inspired by the sea, speaking of Estonia and its people.• The stories will be short and long, modern and ancient, exciting and tragic; most importantly, they will all be genuinely Estonian-like.• Events will include the First Fire Sculpture World Championships, a Venetian carnival, a water carnival, and various music festivals, theatre productions and art installations.• Both the tourism and meetings industry can capitalise on this year long event to raise the profile of Estonia as a travel destination.• The increased attention brought has already been to seen to greatly help aid the tourism industry in the first quarter of 2011. Source: Tallinn 2011,
  136. 136. Future Innovations
  137. 137. Capitalising Upon Technology• The technological capacity of Estonia is a matter of national pride, and has been lauded for the development of a comprehensive ICT infrastructure, making it one of the most digitally networked countries in the world.• As previously mentioned the WEF Global Travel and Tourism Competitiveness Index 2011 ranks Estonia 13th globally for its ICT infrastructure.• This includes being ranked 2nd globally for the extent to which the internet is utilised for business purposes, 22nd in terms of internet users, 24th for broadband internet subscribers and 3rd for mobile telephone subscribers.• Estonia has been vaunted for its implementation of E-Government, allowing Estonian citizens to access a range of services online and vote by electronic ballot• It also plays host to NATO‟s Centre of Excellence for Cybersecurity. Source: World Economic Forum, The Travel and Tourism Competitiveness Report 2011,
  138. 138. Tallinn: The Wireless City
  139. 139. Tallinn: The Wireless City • In 2008, International Summit for Community Wireless Networks named Tallinn as the city with the greatest coverage of wireless internet. (1) Free internet is partly provided by the city and is everywhere - in parks, pubs and hotels etc, and the hotspots are clearly marked with orange and black signs and stickers • Tallinn has also been chosen as one of the seven most intelligent communities in the world by the Intelligent Community Forum for the last fours year in a row. • Tallinn earned recognition for the speedy and widespread implementation of new and innovative information technology solutions. The City of Tallinn has guaranteed an internet connection to all schools, and there are over 300 wireless Internet hotspots in the city of which 60 have free Internet connections provided by the city. (2) • With one of the biggest complaints at conferences the lack of readily available Wi-Fi, this surely gives Tallinn the edge over many of its European rivals.Source 1: Materials and technologies for a green chemistry conference Tallinn 2011, 2: Tallinn University, November 2010,
  140. 140. Tallinn: The Wireless City• The provision of free broad-based computer training for the residents, the comprehensive implementation of e-governance solutions in the management of the city, the continual growth of the number of e-services directed at the population, use of ID cards as public transportation tickets are only some examples of the activities that characterize Tallinn as a community that functions dynamically and innovatively. Source: Tallinn University, November 2010, most-intelligent-communities-again
  141. 141. Tallinn: The Wireless City• The wireless entrepreneur Veljo Haamer, who was instrumental in helping Tallinn set up its wireless coverage, has since put free Wi-Fi on two long distance bus lines, one from Tallinn to Riga in Latvia, and on another from Tallinn to St. Petersburg in Russia.• He has also teamed up with a local cellular provider to pilot test a fourth generation (4G) data service, due to the increasing numbers of Estonians accessing the Internet through smart phones. Source: Discovery News, July 2011,
  142. 142. Tallinn: The Wireless City • Furthermore Veljo hopes to help Tallinn emulate Helsinki in Finland where there is already offering free Wi-Fi access on some of the citys trams and busses. • The greater availability of wireless connectivity on both computers and smart phones means that the city of Tallinn and Estonia will be an increasingly attractive destination for the meetings industry and will surely be an attractive feature for tourists demanding continuous.Source: Discovery News, July 2011,
  143. 143. Technological Innovation - Skype• Estonia views itself as the „cradle of Skype‟, as the software was developed by a team of young Estonian programmers. (1) The majority of the company still resides in Estonia, with over 300 of Skype‟s over 500 workforce located in their office in Tallinn. (2)• In 2010 the Nordic Hotel Forum in Tallinn became the first hotel in the Baltic States to offer its clients the opportunity to use Skype telephones. The new business class rooms have wireless internet connection with Skype telephones that can be used without a computer. Clients don‟t even have to log on to their personal Skype accounts as the Nordic Hotel Forum provides Skype Credit. If the Skype telephones in 18 business class rooms are a success there are plans to add Skype telephones to all rooms. (3) Source 1: The Christian Science Monitor, May 2011, tiny-Estonian-start-up-to-8.5-billion-Microsoft-buy Source 2: Skype, Source 3: Estonian Convention Bureau, May 2010,
  144. 144. Technological Innovation - Skype
  145. 145. Technological Innovation - Skype • The worlds first Skype telephone booth opened in opened to the public at Tallinn Airport on March 18, 2011. • Merilin Pärli, communications coordinator at Enterprise Estonia told ETV - "We wanted to introduce Estonia foremost as a smart e-solution country – small but innovative – which led to the logical idea to make a Skype phone booth."Source 3: Visit Estonia, March 2011,
  146. 146. Medical Tourism
  147. 147. Medical Tourism • The Estonian Development Fund commissioned a report “Healthcare Services 2018,” as part of a wider project on developing Estonia‟s service economy. It concluded that there is real potential in health tourism for Estonia, fitting in with the development of a knowledge-intensive, predominantly service-based export-oriented economy. • The report projected a global growth in healthcare tourism as consumers searched for better service quality, lower prices and shorter queues. • A survey conducted for the report highlighted that two out of three managers of Estonian healthcare institutions and businesses expected European consumers to increasingly seek healthcare in other EU states, and that that younger and more educated people are most likely to use services outside their home country.Source: International Medical Travel Journal, February 2011,
  148. 148. Medical Tourism • The report concluded that Estonia should capitalise on this trend, arguing that the Estonian healthcare system already provides a good base for health tourism, due to state-of-the-art technology, high-quality expertise and price advantages over many European rivals. • Furthermore 30% of health providers in the country already deal with international patients, including a few where the majority of their customers are from abroad. • Estonian Development Fund suggests that a possible model for Estonia to systematically develop health tourism is to set up a public-private partnership agency to develop cooperation between the different players and devise ways of marketing what is on offer. • The report pointed to the health related challenges of neighbouring EU countries - alcoholism, obesity, elderly related care, and suggested offering innovative service packages for these.Source: International Medical Travel Journal, February 2011,
  149. 149. New Opportunities
  150. 150. Enterprise Estonia – SMBC Cooperation Agreement
  151. 151. Enterprise Estonia – SMBC • In June 2011 Enterprise Estonia signed a Cooperation Agreement with the Japanese Banking Group Sumitomo Mitsui Banking Corporation (SMBC), the aim of which is to promote business partnerships between Estonian and Japanese enterprises. • The cooperation memorandum establishes a basis for information exchange, with the purpose of promoting trade between Japanese and Estonian enterprises and encouraging the inclusion of Japanese investments in the Estonian economy. • Business opportunities include the IT field, the development of biotechnology and environmental technology, as well as investments in energy-efficient technologies, were discussed at the meeting. • SMBC is one of the three biggest banking groups in Japan and is interested in facilitating the expansion of Japanese enterprises in Europe, and more specifically in the Baltic States.Source: Enterprise Estonia, June 2011,
  152. 152. Estonia as Financial Services Hub
  153. 153. Estonia as Financial Services Hub • Estonia‟s aim to grow rich as a regional provider of financial services was given a boost in June 2011 with the launch of FinanceEstonia, a new project started by several major players in the countrys investment realm. • The non-profit organizations goal will be to "jointly develop financial services, related support services and technology export in Estonia.“ • Among its 18 founders are the Service Industry Association, NASDAQ OMX Tallinn, KPMG Baltics, Ernst & Young Baltic and a number of law firms and support service bureaus. • Service Industry Association chairman Viljar Arakas said that Estonia should develop business advantages vis-à-vis Scandinavia, and that the country has the potential to be far more than simply a nation of subcontractors. "There is increasing need for financial services, and Estonia could help meet part of this need,” he said.Source: Estonian Investment and Trade Agency, June 2011,
  154. 154. Estonia - Latvia Programme 2007-2013
  155. 155. Estonia - Latvia Programme 2007-2013• The Estonia-Latvia Programme 2007-2013, began in 2007 as a cross-border European Commission initiative to promote mutual sustainable development and economic competitiveness through achieving an integrated and cross- border economic, social and environmental development.• The Programme aims to facilitate collaboration on the development of mutual ICT and transport infrastructures and co-operation on environmental issues and the provision of education and other public services. (1)• 14 new projects were announced in May 2011 including – the reconstruction of the road between Killingi-Nõmme, in Estonia, and Mazsalaca, in Latvia; the DELBI initiative to help small and medium enterprises and start-ups access the cross-border market, as well as facilitate cross-border partnerships in different fields; and the FoodArt project, which aims at strengthening the ties between the rural food producers and gourmet restaurants. (2)Source 1: The Estonia-Latvia Programme, March 2010, 2: The Estonia-Latvia Programme, May 2011,
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