South East Europe: achieving competitiveness

3rd Regional Competitiveness Conference

Southeast EuropeMontenegro

May 20 – 22, 2008

Sue WarrenIndependent ConsultantLondon

Challenge is to grow the market for visitorsGet people to stay longer in the regionGet them to spend moreIdentify the strengths / successes & build on them Present a new Balkan faceCelebrate ethnic diversityNot to take neighbour’s touriststo hold on to good ideasto hold on to conflict hangoverget constrained by the time it takes visitors to travel around

South East Europe: achieving competitiveness

Globalisation can drive discovery brands

Each country’s individuality is its unique asset,especially because of globalisation

Strength is the diversity of ethnicity & experiences

Why would countries want to “merge” their competitive identities?

Good strategy, plans, delivery should be rewarded

BUT harmonization, collective activity, practical networking, will raise the game for mutual benefit

Managing globalisation for tourism

Budget airlines lower travel costs Rising spending power of a growing

international middle class Search for new experiences Threat of product parity, how to compete in

the marketplace Growing demand for wider, richer more

diverse cultural diet …enabled & stimulated by the rapid rise of

low-cost digital communications

Managing globalisation for tourism

Globalisation means the opening up of Europe

Bulgaria & Romania going into the EU brings SE Europe closer to the markets in terms of cost, accessibility e.g. more and cheaper flights

Why not aim to create a “mini Europe” within Europe

Not a Balkan “brand” or joint identity

Manage demand and supply

Note the tourism trends - analyze them and play to the opportunities, separately and together

Two markets emerging1 The familiar Tour groups - 2 Growth of the new traveller - Independents

They have different needsWhat does each market require?

Know your markets (segmentation)

Independents - they look for ideasThey do their own research

UNESCO routes - good for Tour groups but not for Independents - they want their own discoveriesBased on good, motivating information, interesting propositionse.g. hook around eventsEXIT festival in Serbia - 11.000 Brits attended last year, more foreigners than localsBosnia and Hercegovina hosting 2009 World White Water Rafting  Championships You each have many examples

What can the SE region offer?

Product that is shared across borders: Eco / village / authentic experiences

Routes for culture, wine, olives

Religious trips and Faith pilgrimages

Adventure / adrenalin - rafting, hiking

Sun, sea and squid

Harness what is there

What can the SE region offer?

Product that is shared across borders: East meets West Routes for culture/heritage, wine, food & hospitality Religious trips and Faith pilgrimages Adventure / adrenalin - rafting, hiking Eco / village / authentic experiences Nature / Birding Eco / village / authentic experiences Sun, sea and squid

Harness what is thereSee where you could join up

Adriatic cities toursthe

Balkansequal

Globalisation: imperatives for tourism

Europe Quartet

Network for strength

Build on existing ICT projects / portals

Network for strength

Create networks to strengthen the regional offer Work with the private sector through existing

associations

eg1 - Association of SE Europe Travel Operatorseg2 - Balkan Alliance of Hotel Associations,

http://www.balkanalliance.org/

Network for strength

Balkan Federation of Travel Agencies Federation’s interactive activities

“……sharing of experience, information and attitudes, including statistical, demographic

and socio-economic approach to tourist recourses of the member countries, as well

as mutual cooperation among them in respect of the existing facilities, tourist

establishments, legislation, organization of the tourist trade by the states, developing strategy and programs and other relevant

factors in the promotion of tourism. “

Cooperation to achieve goals of common interest

Globalisation: public diplomacy

Quality

Use tools such as Quality Marks which can be regional

For promotion and for business improvement

Quality management – the New Zealand model

range & quality of services appropriate to the star grade

rigorous assessment and licensing process

The Authentic Bulgaria Quality Mark complements the State system of certification which takes into account minimum standards.

Much stronger emphasis on the characteristic experiences that authentic tourism provides… hospitality, personalized service, ambience, cuisine & ties to the local communityThese factors carry the strongest weight in this assessment system

Independent assessors assess & provide business advice to operators

Bespoke system for Bulgaria

Created one official, integrated, country-wide Quality Mark for small accommodation providers

The Quality Mark tells travellers that a business is professional & offers a real Bulgarian experience...they can trust their quality and authenticity

The Quality Mark & the systems behind it, help businesses to improve their quality. …provides a valuable business tool for providers to improve their professionalism and credibility in the marketplace, attracting more profitable customers

Bulgaria: focus on quality

Awards of three grades….

….a rose of distinction

Focus on GovernmentPolitical issues between countries in the region

Visa’s, make it easy for visitors

Border points - a lane for lorries and a lane for leisure visitors

Why not have dedicated tourist friendly border crossings?

South East Europe: achieving competitiveness

Ease of accessibility

Airlines - new hubs to feed into less easily accessed markets

Trains - joint tickets

Harmonisation of practices

Eg car hire for independent travellers

South East Europe: achieving competitiveness

Maintain the individuality of countries within SE Europe

Not just value for money

It is about experiences weighted against amount of effort

How hard is it to travel around?

South East Europe: achieving competitiveness

Promotion - practical initiativesJoint media famil’sLet independent journalists chooseMonitor Trip Advisor and similar sites Market focusMarketing more effectively – research and target agreed source markets

Market to the same markets in a consistent way for benefits collectively and individually

South East Europe: achieving competitiveness

Challenge is to grow the market for visitorsGet people to stay longer in the regionGet them to spend moreMake it easy for travellersIdentify the strengths / successes & build on them Present a new Balkan faceNetworkingHarmonization of standards, protocolsConsistent quality – such as a regional Quality Mark Collective activity – work with private sectorPractical activities such as joint online presence, consistency promoting into target marketsMarket focus and anticipating trends

South East Europe: old, but “new” destinations