India Market Report. Visit Finland India. Kalsi Gurpreet November

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1 India Market Report Visit Finland India Kalsi Gurpreet November

2 Semiannual Report - INDIA Summer season 2017 and outlook for winter CONTENTS What factors have affected the results of the summer season, especially with regard to Finland? What are the prospects for the coming winter season? Other important things to pay attention to Trends and other travel related topics Facts and figures

3 What factors have affected the results of the summer season, especially with regard to Finland? Reasons for the increase/decrease in travelling to Finland? Some of the reasons for the outbound growth are: GDP growing over 7 %, growing air connectivity with LCC s expanding its footprint in India, urban middle class expected to cross over 500mn marks by 2025 (McKinsey), growth of woman business travelers by 891 % by 2030 which is currently pegged at 25 % of the total business travel and rise in senior travelers to 7.3 million by 2030 from 1.3 million in Joint events (marketing & publicity) with Embassy. Actively in touch with TA/TO and support from Finnair. Every year, more than 5.4 million Indians go abroad to conduct business, attend meetings, study, sight-see, shop, honeymoon and especially to visit friends and relatives (VFR). The volume of outbound travel is increasing about 25% a year. According to UNTWO, Indian outbound has potential to grow to 50 million by Number of nights spent by Indian travelers to Finland increased in this summer (June-August 2017) as compare to last year summer, by 41 %, from 15,800 to 22,200. Helsinki area accounted for of those nights, and Helsinki also showed biggest growth in absolute figures (+2700 nights, 22 %). There was 84 % increase in nights spent at coastal & archipelago and remarkable increase of 270 % for Lapland. Lakeland got 48 % more overnights as well. We achieved these numbers without having a full time representative to sell the product. Successfully approached TA/TO for selling Finland as tourist destination. It is also so that Indian travelers wants to explore new destination in Europe and Finland provides real experience of nature, northern lights, Lapland, husky safaris etc.

4 What are the prospects for the coming winter season? The overall outlook of travelling to Finland for the coming winter? Its is expected to have a steady growth in winter season too. Group visits (MICE/Students) are ready with few TA/TO for coming months. Interest towards Lapland (especially Rovaniemi) increased, this was to experience the northern lights and glass igloos etc. Monthly night spent by Indian travellers in Finland are growing and growth rate increased by +37,4% How attractive are round trips (visiting at least two Nordic countries or at least two destinations in Finland)? Two-three Nordic countries package seems more interesting for the Indian travellers instead of travelling to Finland exclusively. We have to make sample itineraries for TA/TO, they don t have much knowledge/information of preparing 7-10 days exclusive Finland package. What trends should be considered in product development to increase the demand in the winter time? Educate TA/TO, media promotion e.g. creative social media, endorsements, newspaper, advertisement etc., joint promotional activities with other Team Finland players. Which target groups should be considered to increase the demand? In new target groups, we can include youth, females, elderly groups, well-seasoned travelers, adventure traveler, group travelling to other part of Europe with Finnair, targeting selective large Finnish or Nordic companies. Going by Indian travelers profile, of the total outbound travel 40 per cent is business travelers, 20 per cent (leisure), 20 per cent (VFR) and 20 per comes under others including students..

5 What are the prospects for the coming winter season? Marketing opportunities Meeting event/s with TA/TO to motivate them in selling Finland as a tourist destination, helping them with visa issues, providing them few sample itineraries which help them to sell Finland as Tourist destination. Team Finland synergy: Finnish Embassy is organising Northern lights exhibitions in different States and in neighbouring countries, VF can support & participate in such activities for next year. A brief presentation about Finland offering (hotels, Indian meals, logistic options etc.) for tourism promotion, sample itineraries, contact info of TA/TO in Finland in one ppt, - Marketing material, brochures, gift or token e.g. pen drive (with VF presentation or offering) or pen with VF branding etc.

6 Other important things to pay attention to New distribution channels, online channels VF should engage with media (social & commercial), attend travel events/exhibitions (e.g. SATTE in 31 st Jan 02 nd Feb 2018). Should create promotional material with Indian faces. More actively participate & distribute brochures in Team Finland events, make few sample itineraries (e.g. Finland- Estonia-Sweden or Finland-Russia-Estonia or Finland-Estonia-Sweden-Norway). Sponsor Students/MICE-Corporates/TA-TO FAM trips. Can have joint promotional activity with big brands (Maruti-NEXA, Future group, Reliance, H&M), normally these brands gives offer to their customers during festive seasons, year end & financial year end and then VF & Finnair can jointly participate with one of the brand to create awareness by sponsoring winner couple flight, 4-5 days accommodation expenses or sponsor free trip for winner (couple) to Finland.

7 Other important things to pay attention to Competitors actions According to statistics, Dubai, USA, Thailand, and Singapore are the top choices for Indian outbound tourists. The UK, Australia, Indonesia, Turkey, Oman, Sri Lanka and Maldives are the other conventionally most visited countries by Indian travelers. In recent times, countries such as Canada, Philippines, Mauritius, Jordan, Taiwan and Kenya are also showcasing an increase in Indian tourists rush. Sri Lanka eyes on its neighbour (India) for tourism growth and expects 1 million tourists by Statistics suggests that Dubai, USA, Thailand and Singapore have already welcomed 1 mn+ Indian guests and aiming to have a consistent double-digit growth. The UK, Australia, Indonesia, Turkey, Oman, Sri Lanka and Maldives have already set their targets for the Indian market. Countries like Canada, Indonesia, Philippines, Mauritius, Jordan, Taiwan and Kenya amongst others are also seeing an increase in influx of Indian tourists. In keeping with the rising trend and with NTOs eyeing double digit growth, many of them have increased their budgets for India by %. In fact, a few have even doubled their budgets and been innovative to waive visa fees. According to the officials of the German National Tourist Office (GNTO), Germany has emerged as the number one tourist destination for Indians coming to Europe. Last year, Germany witnessed around 0.75 million visitor overnights from India. This year they are hoping to attract around 0.8 million Indians. 1 Czech Republic witnesses 40 % growth in Indian tourist arrivals. 2 Holland recorded a growth of over 19 % in Indian arrivals to Holland from January to March this year

8 Other important things to pay attention to Free word Something else that you would like to say to the Finnish travel trade or Visit Finland VF has to participate in trade exhibition (e.g. SATTE 2018 in New Delhi) as an exhibitors and involve Finnish DMCs to participate. To create more awareness in the Indian market to promote tourism towards Finland. Visa issue (1. processing time and 2. shorter duration of visa). Visa process especially for FIT s needs to be clarified with consulate.

9 Facts and figures Share of overnights by regions Indian Overnights in Finland Indian Overnights by Season Winter season (11-04) Summer season (05-10) % 14% 9% 9% Indian travelers mainly travel to Helsinki Finnair s direct flight Most Indian families live in Helsinki Travelers use stopover to Helsinki Most of the travelers travel on business trips Demand towards to experience the northern lights in Lapland is increasing Most Indian travelers travel to Finland in summer In winter, the holiday period is 1/3 of the summer holidays Big increase in the number of Indian travelers in winter season 2016/17 in Finland Duration of stay in winter is longer than in summer Sources: Statistics Service Rudolf, Visit Finland Market Review by Jukka Holappa 6/2017

10 Indian overnights in Finland High seasons: winter and summer 2017 India High winter season (12-02) 2017 Nights spent Change of nights spend, % WHOLE COUNTRY ,5 HELSINKI METROPOLITAN AREA ,5 LAPLAND ,8 COAST AND ARCHIPELAGO ,8 LAKELAND ,6 India High summer season (06-08) 2017 Nights spent Change of nights spend, % WHOLE COUNTRY ,7 HELSINKI METROPOLITAN AREA ,6 COAST AND ARCHIPELAGO ,1 LAPLAND ,5 LAKELAND ,4 Source: Visit Finland Statistics Service Rudolf, Statistics Finland

11 India Latest overnight figures Jan-Aug 2017 Nights spent Nights spent Jan-Aug 2017 Foreign Russian Federation Germany Sweden United Kingdom China and Hong Kong France United States Netherlands Japan Norway Estonia Switzerland Italy Spain India Change of nights spent, % Total foreign 19,4 20,2 23,7 16,3 11,7 12,2 11,2 11,6 India 77,2 40,6 14,3 36,2 32,9 41,4 32,1 49,8 India Nights spent Change of nights spent, % Jan-Aug 2017 Jan-Aug 2017 WHOLE COUNTRY ,9 HELSINKI METROPOLITAN AREA ,2 COAST AND ARCHIPELAGO ,1 LAPLAND ,3 LAKELAND ,8 Source: Visit Finland Statistics Service Rudolf, Statistics Finland

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