International Marketing Strategy for the Tanzania Tourist Board (TTB) focused on the UK-Market commissioned by Africa Oracle produced by the University of Derby, UK written by Emma Pope and Matthias Jessl supervised by Dr. Elina Michopoulou and Dr. Iride Azara
International Marketing Strategy for the Tanzania Tourist Board (TTB) focused on the UK-Market commissioned by Africa Oracle Joyce Sarpong Director, AfricaOracle produced by the University of Derby, UK written by Emma Pope and Matthias Jessl supervised by Dr. Elina Michopoulou and Dr. Iride Azara Page 2 of 94
Content Content... 3 List of Figures... 6 Introduction... 7 Executive Summary... 8 Chapter 1 - External Environment and Market Trends... 9 Introduction 9 Methodology 9 Data Sources 9 Global Tourism Overview... 10 Introduction 10 The African Region 11 External Environment... 12 Introduction 12 Safety 12 Political Landscape and Brexit 13 Technology 14 Sustainability and Environment 15 Travel Trends... 16 Introduction 16 ABTA Travel Trends for 2017 16 World Travel Market Global Trends 2017 16 Key Trends Influencing the UK Market and Tanzania as a Destination 16 1. The Rise of Long Haul 17 2. The Microadventure 17 3. Wellness and Mindfulness 18 4. The Influence of Technology 20 UK Market Customer Profiling... 21 Introduction and Methodology 21 Travel Motivations 22 Travel Destinations 23 Travel Intensity, Frequency, Duration and Seasonality 25 Travel Planning 27 Factors to Consider... 29 Segments based on Costumer Profiling 29 Chapter 2 - Tourism Product Offer Review... 32 Introduction 32 Methodology 32 Economy in Tanzania 33 Components of Travel and Tourism in Tanzania: 36 Range of Tourism Facilities in Tanzania 37 SWOT-Analysis... 38 Tourism Product Offer... 39 Introduction 39 Market Penetration... 40 Page 3 of 94
Definition 40 Opportunities 40 Market Extension and Development... 42 Definition 42 Opportunities 42 Product Development... 43 Definition 43 Opportunities 43 Diversification... 45 Definition 45 Opportunity 45 Factors to Consider... 46 Price Adjustment and Development 46 Distribution Channels 46 Improvements and Additional Considerations 47 Product Market-Fit... 50 Chapter 3 - Travel Trade Outreach... 52 Introduction and Methodology 52 Tour Operators and Travel Agents... 53 Airlines 56 High Street Package Holiday Providers 57 Media... 58 Virtual Reality 58 Travel Websites and Blogs 58 Travel Sections in UK Newspapers and Magazines 59 Bloggers 59 Project Lion Segments Media Engagement 60 Professional Associations... 61 Events and Fairs 63 Industry Events 64 Consumer Events 66 Factors to Consider... 68 Tanzanians in the UK 68 Market Segments with regard to Outreach Channels 69 Priorities and Summary Actions... 71 Strategic Priorities... 71 1. Chapter External Environment and Market Trends 71 - Global Tourism Overview 71 - External Environment 71 - Travel Trends 72 - UK-Market Customer Profiling 73 2. Tourism Product Offer Review 75 - SWOT-Analysis 75 - Tourism Offer 76 - Market Penetration 76 - Market Extension and Development 77 - Product Development 77 Page 4 of 94
- Diversifications 78 - Factors to Consider 78 3. Travel Trade Outreach 80 - Tour Operators and Travel Agents 80 - Media 82 - Professional Associations 83 Framework for Actions with Strategic Implementation... 84 External Environment and Market Trends 84 Framework for Actions with Strategic Implementation... 86 Tourism Product Offer Review 86 Framework for Actions with Strategic Implementation... 89 Travel Trade Outreach 89 References... 91 Appendices... 94 Appendix 1 - Visit England 'Project Lion UK Domestic Tourism Segments 94 Page 5 of 94
List of Figures Fig. 1. International Tourism in 2015 (UNWTO, 2016a: 2)... 10 Fig. 2. UNWTO Tourism Towards 2030: Actual Trend & Forecast 1950-2030 (UNWTO, 2016a: 2)... 11 Fig. 3. The Impact of Terrorism on Travel... 12 Fig. 4. The Impact of Brexit... 13 Fig. 5. What concerns, if any, do you have about Brexit? (WTM, 2016a: 15)... 13 Fig. 6. Mobile and Online Travel Sales Power 2011-2020 (WTM, 2016b: 9)... 14 Fig. 7. Likelihood of supersonic as a mainstream form of transport (WTM, 2016a: 27)... 14 Fig. 8. Responsible Tourism (WTM, 2016a: 31)... 15 Fig. 9. Motivations for Adventure Travel (ATTA, 2017)... 17 Fig. 10. Wellness in the Wilderness. Information adapted from WTM (2016b)... 18 Fig. 11. Global Tourism Industry (Global Wellness Institute, 2017a)... 19 Fig. 12. Customer Profiling Process... 21 Fig. 13. The Motivations for Travel, Source: Data adapted from ABTA (2016)... 22 Fig. 14. Project Lion Segments Motivations for Travel. Information quoted from Visit England (2016)... 22 Fig. 15. Holiday Types in the Past 12 Months (ABTA, 2016: 4).... 23 Fig. 16. Top 10 Countries Visited by UK Residents for at least one Night, 2015 (Office for National Statistics Travel Trends 2015).... 24 Fig. 17. Project Lion Segments Holiday Types, Source: Data quoted from Visit England (2016)... 24 Fig. 18. Britons Taking a Holiday 2012-2016 (ABTA, 2016: 2).... 25 Fig. 19. Average Number of Holidays 2012-2016 (ABTA, 2016: 2).... 25 Fig. 20. Project Lion Segments Travel Frequency and Seasonality, Source: Data quoted from Visit England (2016)... 26 Fig. 21. Holiday Bookings Channels, Source: Data adapted from ABTA, 2016... 27 Fig. 22. What has been booked in the last 12 months? (ABTA, 2016: 7)... 28 Fig. 23. Project Lion Segments Planning, Source: Data quoted from Visit England (2016)... 28 Fig. 24. External Environment and Market Trends overview with key points and factors to consider... 31 Fig. 25. Travel & Tourism's Total Contribution to GDP, (WTTC, 2015)... 33 Fig. 26. Number of international tourist arrivals in Tanzania (The World Bank Group, 2017)... 35 Fig. 27. International Tourist Arrivals to Tanzania in 2013; Source: Immigration Department, 2013, quoted in NBS, 2015... 35 Fig. 28. Leisure travel spending in Tanzania, Source: WTTC, 2015... 36 Fig. 29. The Ansoff Matrix, quoted in Stone (2001)... 39 Fig. 30. The Ansoff Matrix - practical illustration, quoted in Stone (2001)... 39 Fig. 31. The Travel & Tourism Competitiveness Index 2015: Sub-Saharan Africa, (WEF, 2016)... 40 Fig. 32. Primary Tourism Activities by Country of Residence, 2013, Source: NBS, 2015... 41 Fig. 33. Analysis of the nature lover's tour planning, quoted in Dalberg and Solimar (2015)... 42 Fig. 34. Global Wellness Institute (2017b) Top Ten Wellness Tourism Markets in Sub-Sahara Africa, 2015, Source: Global Wellness Institute, Global Wellness Economy Monitor, January 2017... 45 Fig. 35. Product and service adjustment strategies, Source: Kotler, et al., 2015.... 46 Fig. 36. Three opinions of different distribution channel combinations, Source: Ray, 2015... 46 Fig. 37. The Travel & Tourism Competitiveness Index 2015: Sub-Saharan Africa, (WEF, 2016)... 47 Fig. 38. Tourism Product Offer - Strategic opportunities... 49 Fig. 39. Who Holidays Have Been Booked with in 2016 (%) Source: ABTA, 2017a... 52 Fig. 40. Selection of tour operators and travel agents, Source: adapted from African Travel and Trade Association (2017)... 53 Fig. 41. Awarded UK-Tour-Operators regarding to Tanzania, Source: Travel Weekly (2016); Telegraph (2016); The Times (2016); The Guardian (2016)... 54 Fig. 42. British Travel Awards Winners and whether they operate in Tanzania or not, Source: Adapted from British Travel Awards (2017b)... 55 Fig. 43. Top 10 UK Travel Blogs recommended by Vuelio in 2016, Source: Veulio (2016)... 59 Fig. 44. Logo ABTA, Source: ABTA (2017b)... 61 Fig. 45. Logo TIES, Source: TIES (2017)... 62 Fig. 46. Logo Adventure Travel Trade Association,... 62 Source: Adventure Travel Trade Association (2017b)... 62 Fig. 47. Attended Events by Tanzanian Tourist Board from January to June 2017, Source: Tanzania Tourist Board (2017)... 63 Fig. 48. Attendees of Adventure Travel Trade Association Global Summit, Source: Adventure Travel Travel Trade Association (2017c)... 65 Fig. 49. Attendees of Destination Show, London, Source: Destinations Show (2016)... 66 Fig. 50. Demographics of Adventure Travel Show Visitors, Source: Adventure Show (2016)... 67 Page 6 of 94