Travel and Tourism in Portugal

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Travel and Tourism in Portugal

  1. 1. Travel and Tourism in PortugalReport Details:Published:September 2012No. of Pages:Price: Single User License – US$1900Discover the latest market trends and uncover sources of future market growth for the Travel andTourism industry in Portugal with research from Euromonitors team of in-country analysts.The Travel and Tourism in Portugal market research report includes:•Analysis of key supply-side and demand trends•Detailed segmentation•Historic volumes and values, company and brand market shares•Five year forecasts (of market share, market trends, market growth)•Robust and transparent market research methodology, conducted in-countryOur market research reports answer questions such as:•What is the market size of Travel and Tourism in Portugal?•What are the major brands in Portugal?•What are the major brands in Portugal?Why buy this report?•Gain competitive intelligence about market leaders•Track key industry trends, opportunities and threats•Inform your marketing, brand, strategy and market development, sales and supply functionsEXECUTIVE SUMMARYTravel and tourism in Portugal proves resilient to crisisThe Portuguese travel and tourism market has shown strong resilience in the face of the economiccrisis which has affected both Portugal and the rest of the EU. While the decline in Portugueseconsumers’ purchasing power has hampered outgoing tourism flow, Portuguese tourists haveincreasingly opted for domestic trips. In addition, efforts to promote Portuguese travel and tourismabroad have been successful in attracting foreign tourists. This enabled travel and tourism toperform more strongly in 2011 than in 2010 with some major categories performing more stronglythan during the benchmark year of performance in 2008.Austerity measures change tourist consumerismDespite the positive performance of travel and tourism in Portugal in 2011, the austerity measuresimposed by the Portuguese government and by the governments of other European countrieshave led to changes in tourist consumerism. In order to meet consumer demand for good price-quality tourist packages, operators in travel and tourism have engaged in various promotions withthe aim of attracting tourists by offering appealing services and products at increasingly
  2. 2. competitive prices. This growing competitiveness has been a positive factor behind theperformance of travel and tourism.Luxury tourism performs wellThe financial situation in Portugal at the end of the review period indicated an increasing gapbetween consumers in different income brackets. While there has been a continued decline in thelevel of purchasing power and demand of low-income tourists, demand for luxury services hasremained among affluent tourists. This has led to strengthening of the trend of luxury tourism. In2011, luxury travel accommodation facilities were in high demand and they registered elevatedoccupancy rates.Low cost carriers continue to achieve strong growthThe dynamism created by low cost airlines continued to boost the performance of travel andtourism in Portugal in 2011. Supported by powerful marketing structures and strategies based onthe offer of low-fare air connections, companies such as Ryanair Holdings Plc, easyJet Airline CoLtd and Transavia Airlines CV have managed to attract tourists. This has fuelled the trend of citybreaks. As well as encouraging Portuguese tourists to travel to European capital cities, such asParis, London, Rome and Amsterdam among others, it has also encouraged foreign tourists tovisit various Portuguese cities, such as Porto, Lisbon, Faro and Funchal.Economic recovery expected to drive positive forecast period performanceDespite a continued level of economic uncertainty, the economic situation across the EU isexpected to start to recover from the adverse climate over the review period and sustainableeconomic growth is expected to occur. This is expected to form the basis of the positiveperformance of travel and tourism in Portugal over the forecast period. Nevertheless, economicand financial recovery in Portugal is expected to face various difficulties over the forecast period,with intensification of the government’s austerity measures a certainty in 2012. This is expected tohamper opportunities for growth in outbound tourism flow and domestic tourism flow.Get your copy of this report @http://www.reportsnreports.com/reports/191343-travel-and-tourism-in-portugal.htmlMajor points covered in Table of Contents of this report includeTable of ContentsTravel and Tourism in Portugal - Industry OverviewEXECUTIVE SUMMARYTravel and tourism in Portugal proves resilient to crisisAusterity measures change tourist consumerismLuxury tourism performs wellLow cost carriers continue to achieve strong growthEconomic recovery expected to drive positive forecast period performanceKEY TRENDS AND DEVELOPMENTSTourism an opportunity for recovery of Portuguese economyNational tourism strategy fuels development of travel and tourismNew legislation aims to prevent losses to tourists in travel retail
  3. 3. The increasing importance of the internet and social mediaLuxury tourism unaffected by unstable economic climateImpact of external factors on travel and tourismPerformance of emerging source countries benefits travel and tourismGolf tourism gains prominenceDEMAND FACTORSTable 1 Leave Entitlement: Volume 2006-2011Table 2 Holiday Takers by Age: % Breakdown 2006-2011Table 3 Seasonality of Trips 2006-2011BALANCE OF PAYMENTSTable 4 Balance of Tourism Payments: Value 2006-2011DEFINITIONSTourism FlowsTourism Receipts and ExpenditureTravel AccommodationTransportationCar RentalTravel RetailTourist AttractionsOnline SalesHealth and WellnessSOURCESSummary 1 Research SourcesTravel and Tourism in Portugal - Company ProfilesEspirito Santo Turismo SA in Travel and Tourism (Portugal)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDCOMPETITIVE POSITIONINGSummary 4 Espirito Santo Turismo SA: Competitive Position 2011Europcar Portugal Lda in Travel and Tourism (Portugal)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDCOMPETITIVE POSITIONINGSummary 7 Europcar Portugal Lda: Competitive Position 2011TAP - AirPortugal SA in Travel and Tourism (Portugal)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDCOMPETITIVE POSITIONINGSummary 10 TAP - AirPortugal SA: Competitive Position 2011
  4. 4. Vila Galé SA in Travel and Tourism (Portugal)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDCOMPETITIVE POSITIONINGSummary 13 Vila Galé SA: Competitive Position 2011Car Rental in Portugal - Category AnalysisHEADLINESTRENDSDespite its increasing importance within travel and tourism, car rental has proven to be veryvolatile in the context of economic cycles in Portugal. After proving unable to take advantage of itsgood performance over the first half of the review period, car rental suffered a decline in currentretail value terms in 2008, which continued in 2009 due to the severe financial difficulties affectingthe European economy. Nevertheless, the short-lived recovery of the Portuguese economyregistered in the first quarter of 2010, along with the reinstatement of inbound tourism flows, wassufficient to generate improvement in the performance of car rental. In 2011, car rental was able tofurther consolidate its position in travel and tourism.COMPETITIVE LANDSCAPEIn continuation of its performance over the review period, Europcar Portugal Lda continued toaccount for the highest retail value share of car rental in 2011. Driven by mature managementpolicies, this company has been able to consolidate its position in car rental. The company’s directcompetitors in Portugal are Hertz Portugal SA and Sovial - Sociedade Viaturas Aluguer Lda, whichowns the Avis brand in Portugal.PROSPECTSCar rental is expected to maintain its positive performance of 2011 and to continue to achievegrowth over the forecast period. Despite the instability of the Eurozone and in particular of thePortuguese economy, it is anticipated that this negative financial situation will be overturned overthe forecast period. This is expected to have a favourable effect on the level of disposable incomeof European tourists and, consequently, on demand for products such as car rental that boosttourist comfort while on holiday.CATEGORY DATATable 5 Car Rental Sales by Category and Location: Value 2006-2011Table 6 Car Rental Sales: Internet Transaction Value 2006-2011Table 7 Structure of Car Rental Market: 2006-2011Table 8 Car Rental National Brand Owner Market Shares 2007-2011Table 9 Car Rental Brands by Key Performance Indicators 2011Table 10 Forecast Car Rental Sales by Category and Location: Value 2011-2016Table 11 Forecast Car Rental Sales by Category: Internet Transaction Value 2011-2016Health and Wellness Tourism in Portugal - Category AnalysisHEADLINESTRENDSAside from a considerable increase in number of foreign tourists choosing to enjoy the range of
  5. 5. products in health and wellness tourism, the survival of this category has been highly dependenton demand among domestic tourists. Despite the instability of the Portuguese economy, whichhas resulted in a decrease in the level of disposable income and of the purchasing power of manyPortuguese consumers, health and wellness tourism experienced a year of recovery in 2011 and itwas thus able to overcome the adversity of 2009 and 2010.PROSPECTSHealth and wellness tourism is expected to continue to consolidate its positive performance overthe forecast period. In order to do so, spa related companies are expected to receive crucialassistance from both Portugal Thermae and the Portuguese Tourism Board. It is anticipated thatthese institutions will continue to dedicate their efforts to publicising the category’s potential both atan international level, through attendance at international fairs and events, and domestically, withparticipation in local fairs and regional events. The internet and online social networks are alsoexpected to become increasingly important as a marketing tool.CATEGORY DATATable 12 Number of Hotel/Resort Spas: Units 2006-2011Table 13 Health and Wellness Tourism Sales by Category: Value 2006-2011Table 14 Spa Consumer Markets: Domestic Tourism 2006-2011Table 15 Spa Consumer Markets: Arrivals 2006-2011Table 16 Forecast Health and Wellness Tourism Sales by Category: Value 2011-2016Tourism Flows Domestic in Portugal - Category AnalysisHEADLINESTRENDSThe 2008-2011 period reflected the way in which the evolution of domestic tourism flows is largelyinfluenced by internal economic cycles. In 2009, the adverse financial climate in Portugal drovedomestic tourists to rein in their level of tourism expenditure, leading to a considerable increase indomestic trips. Despite the economic improvements registered over the first half of 2010, thefinancial instability which continued to affect the Portuguese economy prompted domestic touriststo moderate their spending and consequently there was a decline in number of domestic trips in2010.PROSPECTSIn 2012, as a result of the adverse financial climate which is expected to undermine thePortuguese economy, Portuguese tourists are expected to continue to holiday domestically.However, over 2013-2016 this scenario is expected to change. From 2013 onwards thePortuguese economy is expected to show signs of stability and improvement as a result of whichPortuguese consumers’ purchasing power is expected to increase. This in turn is expected to leadto a decline in number of domestic trips as Portuguese tourists start to favour holidays in foreigncountries.CATEGORY DATATable 17 Domestic Tourism by Destination: 2006-2011Table 18 Domestic Tourism by Purpose of Visit and by Mode of Transport: 2006-2011Table 19 Domestic Tourist Expenditure: Value: 2006-2011Table 20 Method of Payments for Domestic Tourism Spending: % Breakdown 2006-2011
  6. 6. Table 21 Forecast Domestic Tourism by Purpose of Visit and by Mode of Transport: 2011-2016Table 22 Forecast Domestic Tourist Expenditure: Value: 2011-2016Tourism Flows Inbound in Portugal - Category AnalysisHEADLINESTRENDSTravel and tourism in Portugal has shown strong resilience to external factors. Despite economicvolatility in the Eurozone and in Portugal, over 2010 and 2011 arrivals registered growth in numberof trips which surpassed growth in 2008.COUNTRY OF ORIGINBUSINESS VS LEISURECITY ARRIVALSPROSPECTSFuelled by arrivals from the main source countries, in particular Spain, the UK and France,incoming tourism flows is expected to perform well over the forecast period. According to tradesources, the economies of most countries in Western Europe are expected to succeed inovercoming the economic crisis and to recover over the forecast period. Additionally, arrivals fromemerging sources countries such as Brazil, Russia, China, India and Angola are expected tocontinue to contribute to the growth in number of trips in arrivals in Portugal.CATEGORY DATATable 23 International Arrivals by City 2007-2011Table 24 Arrivals by Country of Origin: 2006-2011Table 25 Leisure Arrivals by Type 2006-2011Table 26 Business Arrivals: MICE Penetration 2006-2011Table 27 Arrivals by Mode of Transport: 2006-2011Table 28 Arrivals by Purpose of Visit: 2006-2011Table 29 Incoming Tourist Receipts by Geography: Value 2006-2011Table 30 Incoming Tourist Receipts by Category: Value 2006-2011Table 31 Method of Payments for Incoming Tourist Receipts: % Breakdown 2006-2011Table 32 Forecast Arrivals by Country of Origin: 2011-2016Table 33 Forecast Arrivals by Mode of Transport: 2011-2016Table 34 Forecast Arrivals by Purpose of Visit: 2011-2016Table 35 Forecast Incoming Tourist Receipts by Geography: Value 2011-2016Tourism Flows Outbound in Portugal - Category AnalysisHEADLINESTRENDSThe poor performance of outbound tourism flows in 2011 reflects the weak state of the Portugueseeconomy. The deterioration of the Portuguese financial system which culminated in the request fora monetary bailout has led to an increase in austerity measures in an attempt to stabilise thenational deficit. Policies such as VAT increases and Christmas bonus cuts, among many others,have been driving the progressive decrease in Portuguese citizens’ purchasing power. With thecontinual decrease in the amount of money that many Portuguese tourists have available to spendon holidays, the number of trips in departures has decreased. This trend started in 2010 and it
  7. 7. continued in 2011.DESTINATIONSBUSINESS VS LEISUREPROSPECTSOutgoing flows are expected to return to positive performance in 2012. For this to come about, thecompetitive environment amongst airlines is likely to be a determining factor. Low-cost airlineinvestments in Portugal, mainly from Ryanair, Easyjet and Transavia, are expected to continuegrowing in the coming years. With competition increasing and, in order to secure the preference ofPortuguese tourists, price promotions are expected to play an important role in internal businessstrategies. New airline connections are also forecast to emerge in the 2012-2016 period.CATEGORY DATATable 36 Departures by Destination: 2006-2011Table 37 Leisure Departures by Type 2006-2011Table 38 Business Departures: MICE Penetration % Breakdown 2006-2011Table 39 Departures by Mode of Transport: 2006-2011Table 40 Departures by Purpose of Visit: 2006-2011Table 41 Outgoing Tourist Expenditure by Geography: Value 2006-2011Table 42 Outgoing Tourist Expenditure by Category: Value 2006-2011Table 43 Method of Payments for Outgoing Tourism Spending: % Breakdown 2006-2011Table 44 Forecast Departures by Destination: 2011-2016Table 45 Forecast Departures by Mode of Transport: 2011-2016Table 46 Forecast Departures by Purpose of Visit: 2011-2016Table 47 Forecast Outgoing Tourist Expenditure by Geography: Value 2011-2016Tourist Attractions in Portugal - Category AnalysisHEADLINESTRENDSThe number of people visiting Portuguese tourist attractions registered a considerable increase in2011. This was closely linked to the growth in number of trips of arrivals as well as the decline innumber of trips in departures. As many Portuguese tourists chose not to travel abroad sofrequently in 2011 in order to reduce their expenditure, they opted to visit tourist attractions onboth day and overnight trips.PROSPECTSTourist attractions is are expected to record a healthy performance over the forecast period interms of both retail value and volume. The Portuguese Tourism Board is expected to play a crucialrole in this positive performance. By promoting Portugal and its most important and interestingtourist attractions, the organisation is expected to succeed in encouraging tourists to visit nationalsites of interest. In addition, new competitions similar to 7 Maravilhas Naturais de Portugal,focusing on other types of tourist attractions, are expected to emerge over the forecast period andto increase the visibility of this category.CATEGORY DATATable 48 Tourist Attractions Sales by Category: Value 2006-2011Table 49 Tourist Attractions Visitors by Category: 2006-2011
  8. 8. Table 50 Tourist Attractions Online Sales: Internet Transaction Value 2006-2011Table 51 Leading Tourist Attractions by Visitors 2006-2011Table 52 Forecast Tourist Attractions Sales by Category: Value 2011-2016Table 53 Forecast Tourist Attractions Visitors by Category: 2011-2016Table 54 Forecast Tourist Attractions Online Sales: Internet Transaction Value 2011-2016Transportation in Portugal - Category AnalysisHEADLINESTRENDSDriven in particular by the dynamism of companies in air, transportation has managed toovercome the decline it experienced in 2009 and it thus achieved current retail value growth over2010 and 2011. Due to economic constraints, the travel plans of many Portuguese tourists havebeen changing. Although, over the review period, domestic tourists were willing to travel abroad,for example to Spain or France, using their own vehicles, in 2011 there was an increasedpreference for less frequent travel but more comfortable forms of transportation, for exampleplanes.AIRLINESCOMPETITIVE LANDSCAPETAP - AirPortugal SA managed to retain its position as the leading company in air in 2011,followed by SATA Internacional, Serviços Transportes Aereos SA, which, despite the increasingcompetitiveness of the category, managed to retain its position as the second leading company.These two companies have a strong tradition and history in Portugal and they are recognised fortheir quality standards.PROSPECTSDriven by air as well as by other categories, especially rail and cruise, transportation is expectedto prosper over the forecast period. Despite the financial difficulties that Portuguese tourists areexpected to face over 2012-2013 in particular, it is foreseen that they will start to regain confidencein the economy and that demand will recover.CATEGORY DATATable 55 Transportation Sales by Category: Value 2006-2011Table 56 Transportation Sales: Internet Transaction Value 2006-2011Table 57 Airline Capacity: 2006-2011Table 58 Air by Category: Passengers Carried: 2006-2011Table 59 Airline Passengers Carried by Distance: 2006-2011Table 60 Airline National Brand Owner Market Shares 2007-2011Table 61 Airline Brands by Key Performance Indicators 2011Table 62 Forecast Transportation Sales by Category: Value 2011-2016Table 63 Forecast Transportation Sales: Internet Transaction Value 2011-2016Travel Accommodation in Portugal - Category AnalysisHEADLINESTRENDSIn 2011, as well as managing to recover from the negative economic factors of 2009, travelaccommodation achieved the highest current retail value growth since 2007. This favourable
  9. 9. performance was directly related to the outstanding results registered in terms of arrivals. Theincrease in number of domestic trips also played an important role in the growth of travelaccommodation in 2011.HOTELSCOMPETITIVE LANDSCAPEThe continued commitment of M & J Pestana SA to tourist excellence and exclusive and luxuryservices is proving successful. This chained hotel operator was able to retain its leading position inhighly varied travel accommodation in 2011. The company was able to consolidate its position,gaining retail value share from its main competitors, Vila Galé SA and Accor Group. In addition tothe great tradition of Pestana in Portugal, which enables the country’s tourists to have confidencein the brand, this group continues to invest in expansion in other countries, such as Brazil,England and Germany. This international investment has also been a positive factor behindincreased brand recognition among tourists worldwide.PROSPECTSThe growth in number of trips in arrivals and in domestic tourism flows is expected to be crucial tothe growth of travel accommodation over the forecast period.CATEGORY DATATable 64 Travel Accommodation Sales by Category: Value 2006-2011Table 65 Travel Accommodation Outlets by Category: Units 2006-2011Table 66 Travel Accommodation by Broad Category: Number of Rooms 2006-2011Table 67 Regional Hotel Parameters 2011Table 68 Travel Accommodation Sales: Internet Transaction Value 2006-2011Table 69 Hotel National Brand Owners by Market Share 2007-2011Table 70 Hotel Brands by Key Performance Indicators 2011Table 71 Forecast Travel Accommodation Sales by Category: Value 2011-2016Table 72 Forecast Travel Accommodation Outlets by Category: Units 2011-2016Table 73 Forecast Travel Accommodation Sales: Internet Transaction Value 2011-2016Travel Retail in Portugal - Category AnalysisHEADLINESTRENDSIn the context of the challenging economic situation in most EU countries and particularly inPortugal over the second half of the review period, many companies in travel retail managed tomodernise and adapt to changing trends and demand. This enabled the category to grow incurrent retail value terms over 2010-2011 following the decline in 2009.LEISURE TRAVELCORPORATE BUSINESS TRAVELCOMPETITIVE LANDSCAPEIn line with the review period, Espirito Santo Turismo SA managed to remain the leading player intravel retail in 2011. With four recognised brands operating in travel retail, specifically Mundo VIP,Top Atlântico, Top Atlântico DMC and NetViagens, this company was able to consolidate itsposition in travel retail in 2011 and to register an increase in terms of retail value share. As well asbeing connected with the well-known and reputed Portuguese bank Banco Espirito Santo (BES),
  10. 10. this company was a national pioneer in terms of travel retail online sales with its NetViagens brandand it is the only company to have a specialist business travel retail brand, Top Atlântico DMC.The combination of these factors has contributed to its strong position.PROSPECTSTravel retail is expected to be one of the categories of travel and tourism most afected by theexpected instability of the Portuguese economy over the forecast period. At the end of the reviewperiod, the Portuguese government had already decreed that all state employees receiving overEUR1,000 per month will receive neither a Christmas bonus nor a holiday bonus in 2012.According to trade sources, with a number of well-known and influential Portuguese economistsand sociologists claiming that this measure goes against social equality, this policy may alsospread to the private sector. This adverse situation is expected to lead to a decrease in thepurchasing power of many Portuguese consumers. As a consequence, non-essential expenses,such as travel retail related costs, are expected to be more tightly controlled.CATEGORY DATATable 74 Travel Retail Sales by Category: Value 2006-2011Table 75 Travel Retail Corporate Business Sales: Value 2006-2011Table 76 Travel Retail Leisure Sales: Value 2006-2011Table 77 Travel Retail Online Sales by Category: Internet Transaction Value 2006-2011Table 78 Travel Retail National Brand Owner Market Shares 2007-2011Table 79 Travel Retail Brands by Key Performance Indicators 2011Table 80 Forecast Travel Retail Sales by Category: Value 2011-2016Table 81 Forecast Travel Retail Corporate Business Sales: Value 2011-2016Table 82 Forecast Travel Retail Leisure Sales: Value 2011-2016Table 83 Forecast Travel Retail Online Sales by Category: Internet Transaction Value 2011-2016Contact: sales@reportsandreports.com for more information.

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