Multiple positioning for maturing tourist destinations
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1 Multiple positioning for maturing tourist destinations Patrick VECE Patrick VECE French Riviera Tourism
2 The French Riviera A case study AS A CASE STUDY
3 France : a leading tourist destination The most visited country Tourism = 6.2% of GDP 80 million foreign stays Famous attractions : -Disneyland Paris 15 million visitors -Louvre Museum 8 million -Eiffel Tower 7 million -Versailles château : 4 million The country of fashion, luxury, perfumes, gastronomy, quality of life,
4 France : diversity of destinations Concentration on seaside 40%, cities (26%) and mountains (18%) French Riviera Côte d Azur : the Mediterranean south coast of France Paris Density of beds by square km Atlantic Ocean French Riviera
5 French Riviera Côte d Azur The leading French tourist destination after Paris 10 tourists per inhabitant : 10 million tourists The tourism industry : 18 % of jobs 6 billion USD in local tourism expenditure
6 Why the French Riviera? Beauty of landscapes - Mild Climate Special mix : a city by the sea, with a mountainous hinterland
7 A famous cultural destination
8 Tourism hard assets investments New developments 500 million USD invested each year : 5* hotel upgrading, convention centers extensions, new museums,
9 Tourism investments A limit to expansion Tourism development key elements : Proximity of transports and facilities Distance to the sea - Integrated resorts
10 Tourism intangible investments
11 Tourism maturity : markets Departure rate of the French residents : 75% 25% do not travel 33% : frequent travellers = 75% of all travel 42% : average travellers = 25% of all travel High concentration of trips by 1/3 of the population
12 Tourism maturity : markets Purchase intentions of the French population in September 2010 What type of expenses are you considering for the coming automn-winter months? Works in the house 19% Holiday - Travel 13% Main home equipment 9% Buying a car 9% Real estate investment 8% Health - Education 5% Strong sustainable tourism demand
13 Tourism maturity : destinations Overnight stays on the French Riviera Long term trend Limited impact of crises on volumes of visitors Limited/slow structural changes, dense and diverse accommodations Well established awareness of the destination, strong widespread image
14 French Riviera Major ratios for a mature destination 50% domestic vs 50% international 75% leisure vs 25% business 75% repeat vs 25% first time visitors 30% short stays (1-3 nights) vs 70% long stays 50% overnights in non commercial accommodations 16 The Greatest challenge: seasonality 55% of all arrivals outside of peak season Visitors by plane All visitors 2 0
15 French Riviera : multiple positioning to reach and face maturity Market segments for diversification Generating markets : regional, domestic, international Social types : young, couples, families, senior Purpose of stay : Leisure / Business Income level : Luxury / middle class Past experience : 1st time / repeat Length of stay : Short stay / long stay Accommodation type : Commercial / non commercial
16 Market diversification Maximum dispersion of French Riviera markets Non Europe 10% Other Europe 20% 50% France United-Kingdom 10% Italy 10% 50% domestic, each international market counts for less than 10% of total visitors
17 Leisure and Business destination Provides : - Reversed seasonality - Higher expense level Not to be opposed to leisure tourism : high level of convergence between both segments
18 First time visitors : Discovery Visitors spontaneous comments : «so many things to see and do» «not enough time»
19 Repeat visitors : Relaxation Visiting and practicing activities only secondary Activities 4% 61% Relaxing 35% Sightseeing
20 Luxury and middle class tourism Keeping a luxury image while targeting middle class segments 0 5% 3% % 24% 2 32% 3 Hotel rooms : 56% in 2-3* Only 3% of visitors spend more than 1000 USD per day
21 Short and long stays Growth of short stays segment with more direct flights to Nice Airport, less than 3 hours away The segment of short stays now appears as mature nights nights Time to connect to the main European destinations
22 Short and long stays Rates for shopping and activities raise in correlation with the length of stay 70% 60% 50% SHOPPING BEACH SPORTS OR ACTIVITIES SHOW OR FESTIVAL 40% 30% 20% 10% 0% 1 night 2 nights 3 nights 4 to 6 7 to to to to 120 Long stays provide a better dispersion of expenditure and impact on the territory
23 Accommodation type Importance of private beds 13% 15% Over 50% of total nights A more stable tourism demand 29% 20% Longer stays, over the whole year 23% Hôtel rented accom. Family/Friends Second home Other commercial private
24 Growing convergence Tourism and residential economies 1st time 25 % of tourists Repeat 98 % wish to return 1/3 visit once every 4 years on av. Frequent 2nd home & VFR Semi residents 45% frequent visitors coming several times a year second homes Double residence : very frequent stays 1 million residents ( homes) 12% foreigners Only 40% live here since they were born Suppressing barriers between residents and tourists
25 Life cycle of tourism 2/3 of main and 2nd homes accommodate relatives and friends on the French Riviera Towards a SUSTAINABLE TOURISM CYCLE MODEL
26 Challenges coming with maturity Loss of interest : lower rate of first timers Aging customers Necessity to renovate/upgrade facilities Difficulty in changing the destination image Renewing interest for the destination
27 Ports : new perspectives for growth Cruise passengers multiplied by 10 : 1 million in 2010
28 Monaco : new cruise port 352 m long tons A new semi-floating sea wall to dock ships
29 Increasing frequency of stays 75% of visitors stayed before 5 1st time times Twice a year 1st stay Less than once a year less than once a year twice a year 3-4 times 5-6 times 7-12 times every month and come back 4 times a year on average
30 Events : a key factor generating OTR (occasions to return)
31 Revealing all cultural potentials of a destination Developing thematic itineraries «Côte d Azur and Painters» Reproduction of artists masterpieces, posted in the original places where they were painted
32 Revealing all cultural potentials of a destination Claude Monet - Antibes Raoul Dufy - Nice
33 French Riviera : 1 % of international trips in the world Investing in succeeding tourism destinations cannot be a bad investment!
34 Thank you for your attention Patrick VECE French Riviera Tourism
35 Produced by Côte d Azur French Riviera Tourist Board 2010 October Patrick VECE French Riviera Tourism Photo credits : CRT Riviera Côte d Azur - Georges Veran Pierre Béhar Balloïde Photo Le Studio - Team Côte d Azur Nice Côte d Azur Airport - DTC Monaco Tourist office Nice - Semec Cannes Town of La Turbie Exedra Hotel Nice SBM Monaco - Cocteau Museum Menton CGAM «La Baie des Anges à Nice» by Raoul Dufy Emilienne Dufy Bequest Work from the National Collections entrusted to the MNAM at the Jules Cheret Museum of Fine Arts Nice ADAGP Michel Graniou «Antibes, Afternoon effect» by Claude Monet Museum of Fine Arts Boston CGAM «Grande Vue de Menton» by Maurice Frido ADAGP Collections of Menton Museum.
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