Lisbon Challenge Tourism Day was organized by Lisbon Challenge (Beta-i) and Turismo de Portugal to join first time entrepreneurs with seasoned startups, investors and key players in the tourism sector held on July 4 2014, at Microsoft headquarters in Lisbon. Full program here http://lisbonchallenge-tourismday.eventbrite.pt
1. Entrepreneurship and Innovation
An opportunity for a Global Tourism Industry
Lisbon Challenge Tourism Day | 4 July 2014
José Epifânio da Franca
2. Economic relevance of Tourism
IT industry: an opportunity for globalization
The role of VC investment fostering innovation and entrepreneurship
Challenges (!) / Opportunities (?) for the Tourism industry
Agenda
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3. Economic relevance of Tourism
IT industry: an opportunity for globalization
The role of VC investment fostering innovation and entrepreneurship
Challenges (!) / Opportunities (?) for the Tourism industry
Agenda
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4. Despite the expansion in recent years, exports are “just” 19.5% above
their pre-Lehman value, or about 1.8% CAGR since 2008
Export trends may suggest structural resistance of the economy to undertake a major
globalization revolution.
Tourism plays a major role in exports.
4
AICEP: Comércio Internacional Português, Fev 2013
Lisbon Challenge Tourism Day | 4 July 2014
5. Export of goods have declined 0.5% year-on-year, whereas export of
services have grown by 0.5%.
A strong knowledge-based economy should be able to foster the
development of a fast growing outbound flow of tradable services…
Exports dominated by goods with a significant content of “traditional”
industrial sectors. In services, Tourism prevails!
5
AICEP: Comércio Internacional Português
Lisbon Challenge Tourism Day | 4 July 2014
6. Exports still largely dominated by near-shore markets.
EU exports have declined 0.4% from 2012, while extra-EU exports have grown 0.4% from 2012.
Exercise: Growing extra-EU exports 15% a year over the next 5 years, and assuming EU exports
stay flat, Portugal exports would grow just about 30% from today value; this would be just below
50% of GDP value
Exports beyond near-shore markets are growing, but the starting point
is very low
6
AICEP: Comércio Internacional Português
Lisbon Challenge Tourism Day | 4 July 2014
7. Afterall, we just need to go back to the markets we called ours 5
centuries ago
5 centuries of entrepreneurship, innovation and leadership.
Today, Portugal is still one of the most entrepreneurial countries in Europe.
The (big) challenge is to significantly increase its technology content.
$11.6
trillion
$5.7
trillion
$16.7
trillion
$17.6
trillion
$2.3
trillion
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8. Economic relevance of Tourism
IT industry: an opportunity for globalization
The role of the VC investment fostering innovation and entrepreneurship
Challenges (!) / Opportunities (?) for the Tourism industry
Agenda
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9. Overcoming the paradox of the numbers:
What creates value does not export and what exports does
not create value…
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10. Economic relevance of Tourism
IT industry: an opportunity for globalization
The role of VC investment fostering innovation and entrepreneurship
Challenges (!) / Opportunities (?) for the Tourism industry
Agenda
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11. Investment in high-potential, high-risk,
growth start-up companies based on solid
knowledge foundations.
Investment in novel technologies or
business models in global industries.
Venture Capital invests in start-up companies to create value for all the
stakeholders and the economy
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12. Source: National Venture Capital Association – Venture Impact - The Economic Importance of Venture Capital-Backed Companies to the U.S. Economy
Courtesy of ES Ventures
Courtesy ES Ventures
FEUP – Oporto 2nd June 2010 11
evidence of superior economic importance...
Venture-backed companies creating value in the US economy
Source: National Venture Capital Association – Venture Impact - The Economic Importance of Venture Capital-Backed Companies to the U.S. Economy
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Venture Capital backed entrepreneurship is known to be a source of
major economic impact, creating both wealth and jobs
13. Drive the change of the national industry paradigm.
Drive an export-oriented economy.
Combat the unacceptable mismatch between knowledge and
human capital produced in the national scientific system and
the economy.
Retain talent and prevent outbound flow of human capital.
Why should it matter even more in Portugal?
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14. Open the national knowledge-based ecosystem to the World
Capital & Talent
“Inbound”
Internationalization
“Outbound”
Inbound and outbound flows in a global economy can create a significant market opportunity for
the tourism industry, especially if proactivity, new processes and practices and creative solutions
leverage both business and leisure.
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15. Accelerate, as a matter of national urgency, the emergence
of a critical mass of technology entrepreneurship and
facilitate the creation of start-up companies to sell goods
and services in global markets
For this to happen, technology entrepreneurship should be a national
endeavour
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16. A healthy investment pyramid requires a strong foundation built with
ingredients to attract private capital, both national and international
Seed
Early-stage
Scale-up
40per year
20per year
10per year
Number of Cos Capital
0.5 M€ per Co
20 M€/year
100 M€ in 5 years
(100% public)
2.5 M€ per Co
50 M€/year
250 M€ in 5 years
(50% public)
10 M€ per Co
100 M€/year
500 M€ in 5 years
(20% public)
Public: National private: International private:In 5 years: 850 M€ 325 M€ 375 M€ 150 M€
16XV PAPS Forum, Washington DC | 30-31 May 2014
17. Ignition Program
Ignition Partners
Network
42 Partners
Call for
Entrepreneurship
20M€/year
Acceleration &
Innovation
Hubs in the World
SF, Boston
Ignition Capital
Network
15 Partners
Stimulate deal
flow and achieve
critical mass
Streamline
process for capital
supply
Catalyst for
outbound
globalization
Attract private
capital
participation
17XV PAPS Forum, Washington DC | 30-31 May 2014
The Ignition Program has been designed to address the perceived
structural weakness at the basis of the pyramid
18. 100 new technology-based
companies for global markets:
communications?
electronics? biotech? health
care? tourism? energy?
information technology?
10,000 highly qualified “minds
& souls”...
Total turnover of € 2 billion...
Entrepreneurs, innovators and
capital to match
Portugal circa 2025
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19. Economic relevance of Tourism
IT industry: an opportunity for globalization
The role of VC investment fostering innovation and entrepreneurship
Challenges (!) / Opportunities (?) for the Tourism industry
Agenda
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20. Challenges (!) / Opportunities (?) for the tourism industry
The same old booking process with a still significant human participation: back
and forth emails with information about flights, hotels, transportation, prices, …
Is it possible to change?
Personalization and empowerment of global companies and world citizens,
capturing the travel profiles of both companies and people
Is it possible to change?
Market still driven by the offer, rather than by demand
Is it possible to change?
By nature, Tourism is an industry of Big Data but it still relies on a myriad of
spaces of small data.
Is it possible to change?
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