© 2015 deloitte business solutions hadjipavlou sofianos & cambanis s.a.0 vassilis kafatos, 20...
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© 2015 Deloitte Business Solutions Hadjipavlou Sofianos & Cambanis S.A. 1
Vassilis Kafatos, 20 October 2015
14th Tourism & Development Conference
The competitiveness of the Greek Travel & Tourism sector – a point of view
© 2015 Deloitte Business Solutions Hadjipavlou Sofianos & Cambanis S.A. 2
Contents
Key questions
The WEF Travel & Tourism (T&T) Competitive Index
The competitive position of Greece in the T&T Sector
Strengths and weaknesses of the Greek T&T sector
Strategies for improving the competitive position of Greece in the T&T sector
Key trends shaping the global T&T sector
© 2015 Deloitte Business Solutions Hadjipavlou Sofianos & Cambanis S.A. 3
Key questionsEnhancing the competitiveness of the Greek Travel & Tourism sector is a multidimensional and complex task. Let’s start by asking the following questions…
1. What is the current
competitive position of
Greece in the T&T Sector?
2. Where do Greece’s
strengths and weaknesses lie
in the T&T sector?
3. What strategies can
Greece follow to improve its competitive
position in the T&T sector?
© 2015 Deloitte Business Solutions Hadjipavlou Sofianos & Cambanis S.A. 4
Framework for assessing Greece’s current positionThe Travel & Tourism Competitiveness Index (TTCI) of the World Economic Forum.
The TTCI is a comprehensive strategic tool for measuring “the set of factors and policies that enable the sustainable development of the Travel & Tourism sector, which in turn, contributes to the development and competitiveness of a country.” Deloitte is a partner of the WEF TTCI.
Travel & Tourism Competitiveness Index
Enabling Environment
T&T Policy and Enabling Conditions
InfrastructureNatural and
Cultural Resources
Business Environment
Safety and Security
Qualification of the Labour Force
Labour Market
ICT Readiness
Prioritization of Travel & Tourism
International Openness
Price Competitiveness
Environmental Sustainability
Air Transport Infrastructure
Ground and Port Infrastructure
Tourist Service Infrastructure
Natural Resources
Cultural Resources and Business Travel
Source: World Economic Forum
15
5
4
Health & Hygiene
6
5
8
43
6
3
4
10
23
6
7
4
17
5
5
10
93
1 Number of indices
© 2015 Deloitte Business Solutions Hadjipavlou Sofianos & Cambanis S.A. 5
2015 TTCI global rankingsSpain tops the 2015 edition of the TTCI global rankings for the first time. 6 out of top-10 countries are European, whereas Greece ranks 31st, moving up one place from 2013.
Source: World Economic Forum
Spain01France02
Germany03USA04UK05
Switzerland06Australia07
Italy08Japan09
Canada10
Greece31
© 2015 Deloitte Business Solutions Hadjipavlou Sofianos & Cambanis S.A. 6
Selected historic rankingsGreece’s TCCI ranking exhibits a declining trend, whereas other Mediterranean destinations are strengthening their position.
Source: World Economic Forum
Spain and Portugal are widening the gap with
Greece
Croatia and Turkey are closing the gap with
Greece
Greece and Cyprus are showing a declining trend
out of 124 countries out of 133 countries out of 139 countries out of 140 countries out of 141 countries
© 2015 Deloitte Business Solutions Hadjipavlou Sofianos & Cambanis S.A. 7
T&T competitiveness and performance
Global RankingsWEF T&T
Competitiveness Index - 2015
International Tourist
Arrivals - 2014
International Tourist
Receipts - 2014
Country Brand Index 2014-15
Spain 1 3 2 2
France 2 1 4 5
Germany 3 7 8 3
USA 4 2 1 1
UK 5 8 7 11
Switzerland 6 39 24 15
Australia 7 44 11 6
Italy 8 5 6 10
Japan 9 25 20 14
Canada 10 20 23 17
Greece 31 17 22 25
Turkey 44 6 12 16
There appears to be a strong correlation between competitiveness and performance in the T&T sector.
Source: World Economic Forum, World Tourism Organization, Bloom
© 2015 Deloitte Business Solutions Hadjipavlou Sofianos & Cambanis S.A. 8
Singapore
Finland
Austria
Japan
Switzerland
Finland
Malta
Iran
Switzerland
Canada
Hong Kong
Austria
Brazil
Spain
Venezuela
Nigeria
Mozambique
Chad
Mauritania
Chad
Burundi
Angola
Switzerland
Pakistan
Chad
Mauritania
Burundi
HaitiLesotho
Singapore
Competitive position per pillarAreas where large gaps with top performers exist, may provide the most opportunities for improvement.
1-7 scale
© 2015 Deloitte Business Solutions Hadjipavlou Sofianos & Cambanis S.A. 9
Ranking per pillarGreece exhibits its lowest rankings in the areas of “business environment”, “labour market” and “price competitiveness”. “Health and hygiene” and “tourist service infrastructure” are the areas where Greece holds top position.
Singap
ore
Finlan
d
Austri
a Japa
n
Switzer
land
Finlan
d Malt
a
Singap
ore
Iran
Switzer
land
Canad
a
Hong
Kong
Austri
a
Brazil
Spain
Strong position
Middle ground
Weak position
Ranking among 141 countries
Trend of Greece’s ranking
© 2015 Deloitte Business Solutions Hadjipavlou Sofianos & Cambanis S.A. 10
Key strong and weak pointsMost of Greece’s lower rankings (6 out of top-10) are related to “business environment” and secondarily “human resources & labour market”, whereas strong points are more diverse and mainly related to “health and hygiene”, and “tourist service infrastructure”.
1. Effect of taxation on incentives to invest (138)
2. Effect of taxation on incentives to work (135)
3. Business impact of rules on FDI (131)
4. Efficiency of legal framework in settling disputes (125)
5. Labour and contributions tax rate (124)
6. Pay and productivity (119)
7. Total tax rate (114)
8. Extent of staff training (111)
9. ICT use for business-to-business transactions (101)
10. Hiring and firing practices (91)
1. Number of regional trade agreements in force (1)
2. Hotel rooms per 100 pop (2)
3. Number of physician per 1,000 pop (3)
4. Primary and secondary education enrollment (9 & 13)
5. Number of World Heritage cultural sites (10)
6. Environmental treaty ratification (11)
7. Number of operating airlines (14)
8. Wastewater treatment (15)
9. T&T government expenditure (18)
10. Airport density (19)
Weak points (notable low rankings) Strong points (notable high rankings)
© 2015 Deloitte Business Solutions Hadjipavlou Sofianos & Cambanis S.A. 11
Key takingsEnhancing the competitiveness of the Greek Travel & Tourism sector can start by building on our strong points and overcoming our weaknesses.
1
2
3
Encourage and facilitate private investment and business activity in the T&T sector
• Strive for a more simple and efficient legal and regulatory framework
• Introduce a friendlier and more stable tax regime
• Promote penetration of ICT (incl. mobile) technologies in business transactions (B2B & B2C)
• Create a more open, efficient and flexible labour market
• Improve T&T staff training
Make travelling to Greece easier and more attractive
• Capitalize on Greece being a safe destination with top health and hygiene conditions
• Improve effectiveness of marketing activities and strengthen the country’s brand
• Pursue global repositioning based on diversified tourism product portfolio
• Increase value offered to travelers to enhance competitiveness
• Build on the high government and private sector prioritization of T&T industry
Further improve T&T infrastructure and assets
• Focus on quality rather than quantity of tourist service infrastructure
• Enforce regulation to improve environmental sustainability
• Focus on improving quality of air transport infrastructure, roads and ports
• Promote business travel and focus on attracting international conferences and events
• Actively protect and promote the country’s rich natural and cultural resources
© 2015 Deloitte Business Solutions Hadjipavlou Sofianos & Cambanis S.A. 12
T&T trendsUnderstanding the key trends shaping the global travel & tourism sector is paramount to developing a flexible strategy for enhancing competitiveness.
DemographicsLGBT
Millionaires
Elders
Millennials
Mid
dle
clas
ses
of
emer
ging
mar
kets
Global travel
BRICs
Pressure to
infrastructure
Continuous
growth
Adm
in b
arrie
rs
to tr
avel
Impact of shocks &
perception of instability
Consumer
prefe
rencesAuthentic
Experiences
Personalization
Conspicuous leisure
Multi-generation
travel Bleisure
Golf vs. Cycling(the rise of MAMILs)
Transparency& value for money
Technology
Analytics
Mobile
Social
Shared economy
Sustainability
Carbon
footprint
“Go-green”
campaigns &
initiativesT&T
sector
Multi-channel
distribution & new
payment m
ethods
© 2015 Deloitte Business Solutions Hadjipavlou Sofianos & Cambanis S.A. 13
What’s Next?Inspiring and engaging the empowered holiday maker …
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