Understanding the Brazilian consumer

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1 Understanding the Brazilian consumer A major tourism research project into how international consumers view and the factors most likely to motivate them to visit the country has been undertaken by Tourism. The scale and depth of the research is unprecedented and provides unique insights into consumer demand in 15 of s most important inbound markets. Insights from the work will contribute towards the industry achieving its Tourism 2020 goal to increase annual overnight tourism spending to between A$115bn and A$140bn by the end of the decade. The research will be used to help shape the future marketing of and identify opportunities to make the country s tourism offering more attractive to overseas visitors. Respondent Profile Gender Age Place of Residence Male Female 5 4 Under 24 years years years years years 65+ years São Paulo Rio de Janeiro Minas Gerais Rio Grande do Sul Paraná Bahia Pernambuco 4 Santa Catarina Goiás Ceará Income Living Situation Employment Status Occupation Under R$ 12,000 R$ 12,000-23,999 R$ 24,000-47,999 R$ 48,000-71,999 R$ 72,000-95,999 R$ 96, ,999 R$ 120, ,999 R$ 144, ,999 Over R$ 204,000 Prefer not to answer 1 Partner and children 1 Parents Partner 1 Along Relatives/ family members Single parent Housemates living situation 3 Work full time Work part time Looking for work Full time student Retired Home duties 6 Professional Self-employed Manager Clerical and Admin Worker Labourer / trade Sales Worker Community Worker Farmer % Sample size n=954 Most important factors when selecting a holiday destination (Top 5) Respondents were asked what they look for when choosing any holiday destination. Interesting attractions to visit Good food, wine, local cuisine and produce A safe and secure destination Rich history and heritage World class beauty and natural environments Clean cities, good road infrastructure with clear signposts Great shopping/ world class brand names Friendly and open citizens, local hospitality A family friendly destination Native or cultural heritage or activities Romantic destination Ease of obtaining visa Exciting events, local festivals and celebrations Spectacular coastal scenery A range of quality accommodation options Flights with no stop-overs A destination that offers value for money Vibrant city lifestyle Great swimming beaches Different and interesting local wildlife A destination that offers the best in luxury accommodation and facilities Indigenous experiences Read as: of respondents ranked interesting attractions an important factor when choosing a destination

2 How does Rank? Respondents were asked to indicate which destinations they associated with the following factors. Each respondent was provided with a list in excess of 50 international destinations. Interesting attractions to visit % Read as: 5 of all respondents associated with interesting attractions to visit. Elements of interesting attractions Respondents were asked what constitutes interesting attractions when choosing a holiday destination. Historical landmarks Natural landmarks/ Heritage Sites Theme parks (e.g. Disneyland) Amusement/ Themed attractions Museums/ art galleries/ theatres Spectacular architecture Shopping centres and malls Restaurants Zoos/ Aquariums/ Wildlife Sanctuary Casinos/ nightclubs/ bars Cultural or religious sites Safety and security Switzerland Read as: 4 of all respondents associated with safety and security. Elements of a safe and secure destination Respondents were asked what constitutes a safe and secure destination. Respondents who indicated was not safe and secure were asked why not. A low chance of being robbed or assaulted 4 A destination whose people have different beliefs to mine A low chance of terrorism Bad reports about the treatment of fellow travellers 2 A low chance of health risk Law enforcement system with integrity that can be trusted A destination whose people have similar beliefs to mine 1 Law enforcement system without integrity that cannot be trusted A high chance of being robbed or assaulted Lack of bad reports about the treatment of fellow travellers A high chance of terrorism (Lack of overall knowledge, different beliefs and bad reports)

3 Good food, wine, local cuisine and produce Switzerland 80% 70% % 2 Read as: 2 of all respondents associated with good food, wine, local cuisine and produce. Elements of good, wine, local cuisine and produce Respondents were asked what constitutes good food, wine, local cuisine and produce when choosing a holiday destination. Respondents were asked what are the most important types good food, wine, local cuisine and produce. A national style of cooking I like A range of multicultural food options 5 Interesting and exciting street-food High grade meat and livestock 1 Fresh local produce grown or raised in pristine natural environments 2 Fresh seafood A heritage of food and wine culture 1 Natural fruit and vegetables Vineyards with great food offerings Award winning wineries Award winning fine dining restaurants Renowned cheese and dairy How is n food and wine currently viewed by Brazilian consumers? Respondents were asked which factors they currently associate with the n food and wine offering. Fresh local produce grown or raised in pristine natural environments Fresh seafood High grade meat and live stock Spectacular outdoor dining Multicultural food Outback Steakhouses A heritage of food and wine culture Wineries with great food Stunning food and wine trails Fish and chips on the beach Unique culinary experiences Food and wine events and local festivals Backyard BBQs Fine dining restaurants Meat pie with sauce Read as: 3 of respondents associated n food and wine with fresh food produce grown or raised in pristine natural environments.

4 World class beauty and natural environments Hawaii South Africa New Zealand North Africa Read as: 5 of all respondents associated with world class beauty and natural environments. Elements of world class beauty and natural environments Respondents were asked what constitutes World class beauty and natural environments Respondents were asked what are the most important types world class beauty and natural environments Remarkable scenery to soak up and enjoy 3 Tropical islands and beaches Engaging with nature first hand, for example by hiking, bike riding or scuba diving 3 Natural developed coastal Visiting sites of historical, cultural or religious significance Historical / cultural / religious Wilderness / mountain 1 1 World Heritage status areas 1 Natural remote coastal 1 0% Wide open inland / outback Rich history and heritage Clean cities, good road infrastructure with clear signposts % % 4 60% Switzerland China 5 4 Russia United Arab Emirates 3 24th Read as: of all respondents associated with rich history and heritage. Friendly and open citizens, local hospitality Read as: 4 of all respondents associated with clean cities, good road infrastructure with clear signposts. Great shopping South Africa Hawaii 3 United Arab Emirates Switzerland 30% 2 2 China 2 Read as: 3 of all respondents associated with friendly and open citizens, local hospitality. 13th 1 Read as: 1 of all respondents associated with great shopping.

5 N Exciting events, local festivals and celebrations Read as: of all respondents associated with exciting events, local festivals and celebrations. Elements of exciting events, local festivals and celebrations Unit Respondents were asked whether they always time their holiday and places visited with an event or festival of interest. Respondents were asked what constitutes exciting events, local festivals and celebrations when choosing a holiday destination. Average - 5 Average Music festivals China Indonesia India Arts and entertainment events Cultural celebrations 1-6 South Korea Family events - 6 Brazil Local/ regional events Malaysia Russia Sporting events Food and Wine festivals -1 4 USA Natural and wildlife events - Singapore Religious events -1-30% New Zealand Disagree Agree Reads as: 6 of Brazillian respondents indicated they always time their holiday and places visited with an event or festival of interest. Spectacular coastal scenery Range of quality accommodation options Hawaii Mauritius 3 4 Indonesia/ Bali 2 3 South Africa 2 3 Read as: 5 of all respondents associated with spectacular coastal scenery. Read as: 5 of all respondents associated with a range of quality accommodation options.

6 Associations with vs. importance when selecting a holiday destination This chart shows the importance of each factor when selecting a holiday destination and the extent to which is associated with each of these factors. The horizontal axis indicates the importance level, with low importance on the left side of the chart to high importance on the right. The vertical axis indicates the extent to which is associated with each of these factors, with weak associations at the bottom to strong associations at the top. Strength Associations with Weak Different and interesting local wildlife The best in luxury accommodation and facilities Vibrant city Quality accommodation Flights with no stop-overs Great swimming beaches Exciting events Native or cultural heritage or activities Value for money Spectacular coastal scenery Family friendly Romantic destination Clean cities / good road infrastructure Friendly and open citizens Strengths for World class beauty and natural environments Interesting attractions to visit Safe and secure Good food, wine, local cuisine and produce Rich history and heritage 0 Indigenous experiences Ease of obtaining visa Great shopping Opportunities for Low importance when selecting a holiday destination High The factors placed in the top right quadrant are considered the strengths for as a destination, given the high importance in destination choice and the strong association with as a holiday destination. The factors placed in the bottom right quadrant are considered the opportunities for as a destination, given the high importance in destination choice but currently weak association with as a holiday destination. Strengths for : Spectacular coastal scenery, family friendly, clean cities / good road infrastructure, world class beauty and natural environments, safety and security and interesting attractions to visit. Opportunities for : Romantic destination, great shopping, friendly and open citizens, good food, wine, local cuisine produce, rich history and heritage. Aspiration and Intention to visit Respondents were asked which destinations they would most like to visit in the next four years (aspiration), and which destinations they are actively planning to visit in the next two years (intention). Aspiration Which of the following destinations are you considering travelling to in the next 4 years? Intention Which of the following destinations are you actively planning to visit for a holiday in the next 2 years? Visitation 000 s of trips in 2012 (TE) Visitation rankings derived from Tourism Economics (excluding Hawaii) (excluding Hawaii) (including Hawaii) Western Continental Europe Western Continental Europe Central America, 11th Western Continental Europe Central America, 12th Eastern Europe 20th Key: Eastern Europe (e.g. Poland, Hungary, Czech Republic, Croatia, Slovenia) (e.g. England, Scotland, Wales, Ireland) Western Continental Europe (e.g., Netherlands, Austria, Portugal) Read as: : of Brazilian consumers are considering travel to in the next 4 years, with intending to visit. is ranked 20th for visitation against other long haul destinations for outbound travel from Brazil. Note: Hawaii is included in US for visitation figures as cannot be separated. Charts only display the top 10 destinations across aspiration, intention and visitation.

7 Destination expectations and satisfaction Based on their last trip, respondents were asked what their expectations were before they visited. Based on their last trip, respondents were asked how satisfied they were with their holiday experience. Trip expectation Top 10 Trip satisfaction Top West Europe West Europe 3 7 USA 3 6 UK USA 6 UK Read as: 4 of respondents had high trip expectations of. Read as: 7 of respondents who recently visited were highly satisfied with their trip. Note: Insufficient sample for as a destination. Obstacles preventing consumers from planning a holiday to Respondents were asked if they had specific obstacles preventing planning a holiday in. Expensive airfares Flight is too long High cost of travelling around High cost of living expenses I don t know anyone who lives there Not the best experiences I can afford I don t know how to travel in/ around I don t know enough about what to do there Experiences are not unique / had anywhere else Difficult to obtain visas Bad reports about the treatment of fellow travellers A high chance of being robbed or assaulted Destination whose people have different beliefs A high chance of terrorism Told of a bad experience by someone I know Law enforcement system without integrity / trust Read as: 6 of respondents indicated expensive airfares was a key obstacle for not planning a holiday to.

8 Consumer passions and interest segmentation Respondents were provided with a list of 52 individual passions points (i.e. hobbies) and asked to indicate which ones were of interest. Respondents were then asked to indicate which of these passions they would travel overseas to specifically follow or participate in. After a thorough segmentation each individual passion was grouped into segments of which consumers would travel overseas to follow or participate in. Nature 6 Arts and History 5 Shopping 4 Food and Wine 4 Foreign Culture Music and festivals 3 Photography Art Participation Sport 2 Aquatic activities 1 Adventure activities Self Drive Gambling Read as: 6 of consumers suggested they would travel overseas to follow or participate in a nature based passion or area of interest. Nature Activities (6) Bird watching, campervan-ing, camping, gardening, observing wildlife, natural wonders, tramping and walking. Sports (2) Cricket, golf, gym / fitness, horse racing, motor racing, netball, rugby, running, soccer and tennis. Food and Wine (4) Trying new / different foods, cooking / learning to cook and wine tasting. Adventure Activities () Four wheel driving, horse riding, hunting, kayaking, mountain biking, road cycling and skiing. Art Appreciation and History (5) Admiring architecture / design, art appreciation, museums and history. Art Participation () Drawing / illustration, painting, sculpture / pottery and writing, dancing and singing. Aquatic Activities (1) Diving, fishing, sailing, snorkelling / scuba diving, surfing / paddle boarding and swimming. Single Activity Segments Experiencing foreign culture () / Shopping (4) / Photography () Self Drive () / Gambling (). Concerts and Festivals (3) Attending concerts / shows, attending music festivals.

9 About the research The Consumer Demand Project (CDP) is a major international tourism research project into how global consumers view and what most motivates them to visit, identifying the triggers and experiences important to the consumer when selecting a holiday destination. The research project was carried out by BDA Marketing Planning, a consultancy who specialise in international demand side strategy development and consumer research. BDA Marketing Planning was originally employed by Tourism in 2010 to work on a major strategic project which was the forerunner to the industry s Tourism 2020 strategy. The aim of this follow-up consumer research project was to help determine the strategic priorities to achieve the Tourism 2020 goal, by providing a comprehensive assessment of s current destination appeal and the future tourism potential of key n holiday options. The research was carried out in fifteen of s key tourism markets: China,, India, Indonesia,, Malaysia, New Zealand, Singapore, South Korea, Brazil, Russia,,, UK and USA.

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