DEVELOPMENT OF SPANISH OUT- BOUND TRIPS

DEVELOPMENT OF SPANISH OUT- BOUND TRIPS 2 TRAVEL PATTERNS 2.1 NUMBER OF TRIPS Spanish statistics count the number of trips involving at least one night spent away from the usual place of residence. Then they establish a difference between tourist trips (with leisure, recreation or holiday as their central motive) and trips to second residences (an important part of the total, given the high number of these owned by Spaniards). Finally tourist trips can be domestic or international. In 2004 Spaniards took a total of 132.9 million trips. Tourist trips were 47.1 million (4.6 million or 10% of them international). The numbers for 2005 were 171.6 million total trips and 84.1 million tourist trips (10.5 million of them international). OUTBOUND TRIPS FROM * Since 1999 the share of international tourist trips in the total has grown significantly while their rate of growth has been around five times higher than domestic ones. In 2004 international trips rose 17% over 2003; in 2005 they more than doubled. Spain, however, remains the main tourist destination for Spaniards with close to 90% of the total market for tourist trips. But international travel is growing rapidly. Spanish tourism, both domestic and international, has a marked seasonality with two high peaks over July-August (the highest) and around Easter (falling in either March or April of each year). By region, Catalonia is number one in the volume of outgoing tourists followed by Madrid, Valencia and Andalusia. Spain +15 % Russia Poland +14 % +14 % Ireland Norway Denmark France +8 % +8 % +8 % +7 % * European outbound travel markets with more than 5 million outbound trips IPK International - Int l Tourim Consulting Group, World Travel Monitor Company 4

SPANISH TOURIST ARRIVALS TO VIETNAM 2.2 EUROPEAN DESTINATIONS The bulk of outgoing Spaniards chooses Europe as its main holiday destination. In 2004 over three-quarters of all international tourist trips were intra-regional. Main destinations are France, Portugal, Italy, Great Britain and Germany. Morocco is the most important non- European destination with 5% of outgoing tourist trips. 2.3 REST OF THE WORLD The rest of the pie is shared by the Americas (13.3%) and Asia-Pacific (less than 5%). There are no detailed data on the Spanish side for tourist trips to Southeast Asia. The most attractive destination there for Spaniards seems to be Thailand, visited by 52,386 in 2005 (data from the Tourism Authority of Thailand). However, numbers of trips to Thailand from Spain are not growing. 2.4 VIETNAM The recent evolution of Spanish tourism to Vietnam has been quite impressive, even though absolute numbers still remain low in comparison with other European nationalities. (See chart below) YEAR NUMBER GROWTH (%) 1999 3,840 ---- 2000 5,577 45.2 2001 7,406 32.8 2002 10,306 39.1 2003 5,851-43.3 2004 11,340 93.8 2005 (est.) 2006 (est.) 18,618 19,218 64.1 3.2 Spanish Tourist arrivals to Vietnam Based on VNAT data 5

2.5 EXPENDITURES In 2004, Spanish travellers spent a total of 17.86 billion. Average expenditure per person per trip came up to 134.3 while daily per capita expenditure was 32.1. International trips involve the highest total and daily expenditures. Even though they are but a mere 10% of total tourist trips, they concentrate 23.4% of total travel expenditures by Spanish households with a daily average amount of 107.6. 2.6 SOCIO-DEMOGRAPHIC PROFILE Income, formal education, employment and occupation are the main predictors of travel for Spanish tourists. Although data do not allow separation of domestic and international tourists, clearly all those features are even more concentrated in the latter, especially when it comes to long-haul destinations. In general, the Spanish traveller has a monthly income over 2,500; a university degree (71.6% of them travel); is employed and works as manager, professional or intermediate staff; resides in Catalonia, Madrid, Valencia or Andalusia. There are not many data about what Spaniards like to do when on long-haul holidays. Given their socio-demographic profile, it is expected that they will enjoy high-standard accommodation, good restaurants, and the local cultural life. Spaniards like partying at night, drinking and talking until late, going to discotheques and/or to karaoke bars. Although evidence is only anecdotal, they complain that there is not enough nightlife in Vietnam. If they travel with children, they worry about the lack of entertainment for them. They also say that they would stay longer in the country if they could find what they are looking for. 2.7 BOOKINGS When it comes to international travel, Spaniards use air transport above all other means (57% of foreign travel is by air). The distant location of Spain accounts for this preference. In the same way, foreign travel is usually more organized than domestic, and for similar reasons distance, both physical and cultural. Most Spaniards therefore make reservations previous to departure in the form of package tours, partial reservations through a travel agent or directly with the providers. Reservations are made well in advance of trips. 41% of them are planned at least a month beforehand. However, Spaniards are less eager than other Europeans to buy whole packages, preferring limited reservations. Preferred accommodation for international travel is in hotels (53% use 3 or 4 star hotels). Package 23.6 % Partial booking via travel agent 23.1 % Direct booking with supplier 26.4 % Without booking 25.6 % Source: Movimientos Turísticos de los Españoles (Familitur). IET. 6

VIETNAM S IMAGE IN SPAIN 3 VIETNAM S IMAGE IN SPAIN 3.1 IN GENERAL Vietnam is not yet a well-known destination for Spanish tourists. Even today, the country is mostly associated with the memories of the American War, especially among the baby boomers born between 1940 and 1960. Few people are aware of the changes the country has undergone since the early 1980s. Among those who know better, three main groups of travellers can be named. The first and perhaps biggest is that of the baby boomers trying to rejuvenate by visiting the country of their youthful sympathies. The second includes special interest travellers who look for specific products (scuba diving, biking, trekking). Backpackers in search of pristine environments and peaceful surroundings (Sa Pa, Phu Quoc, Nha Trang) are the third. However, all of those groups are really small in numbers. Spanish media, whether newspapers or magazines, printed or audiovisual, general or specializing in travel, devote very little attention to Vietnam. The travel sections of the main dailies (El País, El Mundo, ABC, La Vanguardia) and travel magazines (Viajar, Revista De Viajes, 80 Días) only devoted a trickle of notices and articles to Vietnam in 2005 and 2006. This lack of attention on the Spanish side is matched by its Vietnamese counterpart. Promotional materials produced by VNAT still rely mainly on printed media that are often obsolete; branding is practically non-existent; official Vietnamese marketing seems unable to take advantage of the Internet. Fortunately, the country itself seems attractive enough to have increased its market volume in Spain six times since 1999, but absolute numbers of Spanish arrivals in Vietnam are still far below their potential. 3.2 COMPARISON WITH OTHER SEA COUNTRIES Thailand is the best-known Southeast Asian destination in Spain. Nevertheless, Thailand seems to be losing traction over the last two years, which creates an opportunity for Vietnam. There is increased competition however from other newcomers such as Cambodia and the Philippines. As most Spanish tourists take tours of the countries they visit in Southeast Asia, this offers an opening for combined promotion with some of Vietnam s neighbours (Laos, Cambodia, even Thailand). 7

TRAVEL DISTRIBUTION SYSTEM 4 TRAVEL DISTRIBUTION SYSTEM 4.1 AIRLINES One serious problem Vietnam faces in its promotional activities in Spain is the lack of a direct air link between the two countries. To fly to Vietnam Spaniards may have to make one or even two connections. 4.2 TOUR OPERATORS & TRAVEL AGENTS The number of travel mediators reached an alltime high of 4,220 in 2003. Of this number, tour operators or wholesalers had a share of about 12%, with the rest being travel agents or retailers. Spanish tour operators are highly concentrated. Most of them belong to AMAVE (Spanish Association of Travel Wholesalers), but some important companies that play a central role in long-haul travel, such as Catai and Kuoni, are not members of the group. Many Spanish tour operators are owned by air companies (Mundicolor/Iberia) or other European tour operators (Ambassador Tours/TUI). The current members of AMAVE have combined revenue of over 1,900 million and staff of over 2,500 employees. Altogether there are over 400 wholesalers operating in the Spanish market. Though there are no official data, Ambassador Tours, Politours, Travelplan, Kuoni and Catai seem to concentrate over 90% of the Southeast Asian market, including Vietnam. See their addresses and websites below. Travel agents are represented by AEDAVE (Spanish Association of Travel Agents). Many of them are owned by or affiliated with main tour operators, while independent travel agents make for a small part of the market. However, when it comes to special interests they are very important for faraway destinations such as Vietnam. See their addresses and websites below. MEMBERS Ambassador Tours, S.A. Club de Vacaciones, S.A. Club 5 Estrellas, S.A. Condor Vacaciones, S.A. Julia Tours, S.A. Tiempo Libre/Mundicolor, S.A. Travelplan, S.A. Politours, S.A. Pullmantur, S.A. Royal Vacaciones Rhodasol / Turimar (G.Tivoli) Touralp Trapsatur, S.A. Panavision / C.A Fondo, S.A. 8

4.3 RESERVATIONS SYSTEMS Travel agencies are feeling the combined crunch of reduced revenue and new travel distribution tools such as reservation systems and increased access to the Internet, used by their former customers. Iberia reduced their commissions to zero from January 2004. Increasingly, airlines (including lowcost companies) are becoming direct sellers trying to turn their passengers into customers by offering inclusive tours, fly and drive arrangements and other complex services. At the same time, Central Reservations Systems (CRS) and global travel companies to be found online allow customers to book and pay for travel services without going to a travel agency. Spanish consumers have direct access to US-based global travel companies (Orbitz, Travelocity, Expedia, Excite and others) and their European competitors like OPODO. OPODO was founded in 2001 and its owners are nine European airlines (including Iberia) and CRS Amadeus. Asian offers from OPODO to the Spanish market only include China and Thailand. 4.4 THE INTERNET Internet navigation plays an increasing role among potential Spanish travellers. Already close to 40% of the population are Internet users and their numbers are growing by leaps and bounds. YEAR USERS POPULATION % POP. USAGE SOURCE 2000 2004 5,387,800 40,827,300 14,095,451 43,435,136 13.2 % 32.5 % ITU Nielsen / NetRatings 2006 17,142,198 44,351,186 38.7 % Nielsen / NetRatings The most recent data on Internet use by potential Spanish tourists date from 2004 and have surely increased since then. At that time, 12% of Spanish tourists (25% of Madrid residents, 21% of Catalonia residents) used the Internet to plan their travel. A large majority (84%) looked for information on travel and accommodation, but 29% made a reservation and 5% paid for their trips online. As in most developed countries, the Internet has become one of the main sources for travel information in Spain, making Destination Management Organizations (DMO) websites a crucial part of their marketing. USE OF THE INTERNET TO PLAN TRAVEL BY SPANISH TOURIST (%) Used the Internet 12.1 % Don't know / No answer 9.4 % Do not use the Internet 78.6 % Source: Movimientos Turísticos de los Españoles (Familitur). IET. 9

PROMOTING VIETNAM IN SPAIN 5 PROMOTING VIETNAM IN SPAIN 5.1 CONSUMER PROMOTIONS Careful selection of media is necessary to ensure the best possible coverage of your target markets. For most purposes, adverts in national newspapers (especially when they coincide with travel articles on Vietnam) are the most effective way of generating high awareness of the product to a wide audience. PRESS AND ADVERTISING National printed media are one of the main sources considered by potential holidaymakers at the decision-making stage. Travel programmes on TV provide unusual and innovative holiday ideas. The main Spanish dailies are: El País (2 million readers/day) El Mundo (1.3 million readers/day) El Periódico (0.85 million readers/day) ABC (0.84 million readers/day) La Vanguardia (0.65 million readers/day) El Correo (0.59 million readers/day) La Voz de Galicia (0.57 million readers/day) TELEVISION Television advertising is expensive and beyond the budgets of most operators. On the other hand, television is number one in penetration of national markets among the media. Spaniards devote 3 hours and 40 minutes per day to watching television. The main open channels are Antenna 3 (24% share), Telecoms (23%) and TVE1 (20%). Among travel-related channels, Discovery, Viajar and National Geographic are at the top. HOLIDAY SHOWS SITC (Barcelona, May) counted 200,000 visitors in 2005. Catalonia (where Barcelona is located) is the main long-haul tourism generating area of Spain. ExploOcio (Madrid, October) also had a high number of visitors. ExpoVacaciones (Bilbao, May) had over 270,000 visitors. Feria Internacional del Turismo (Valencia, April) reached 45,000. Overall, general information papers are seen as the best way to reach long-haul travellers. Weekly magazines published by national papers are an excellent medium for travel awareness. No weekly magazines are exclusively dedicated to travel and tourism. Among monthly publications related to travel, National Geographic (1.1 million readers) and Viajes National Geographic (0.33 million readers) are widely read by affluent travellers. Spanish media such as Revista Viajar, Revista de Viajes and others have a limited readership. 10

5.2 TRADE PROMOTIONS It is highly recommended to consult with the Vietnamese Embassy in Spain (Embajada de Vietnam en España, C/ Arturo Soria 201-1A 28043 Madrid España. Phone: 0034 91 5102867 - Fax: 0034 91 4157067 - http://www.embavietnam-madrid.org/) before planning any promotional activity for trade. SPANISH TRAVEL TRADE PUBLICATIONS Articles in the travel trade press are an effective method of distributing product information and increasing awareness. There are a number of travel trade publications in Spain. The publications should be contacted for details on advertising rates. The main ones are EDITUR. Weekly, both in print and online. Best-known trade publication. News and analysis of market trends and developments (http://www.editur.info) SPIC. Online, with daily information (http://www.revista-spic.net/) La Voz Digital (http://www.lavozdelturismo.es/) The Tourist (http://www.thetourist.es/) TRADE FAIRS The main travel trade fair in Spain is FITUR (http://www.ifema.es/ferias/fitur/default.html). Usually held at the end of January. It is usually preceded by FITUR CONGRESOS, a MICE fair. FITUR is devoted to the trade. It had 44,000 visitors in 2006 with 1,984 exhibitors and 83,815 sq. metres of space. FITUR has become one of the big events in the world and has a special resonance in Latin America. REPRESENTATION To promote your product in Spain consider having someone representing you locally to act as a sales representative, a reservation contact or both. 5.3 PUBLIC RELATIONS The aim of a public relations campaign is to encourage potential visitors to come to Vietnam and at the same time create a positive image of the country in Spain. Individual operators cannot accomplish this. It is the task of VNAT. It is widely recognized how much people are influenced in their travel decisions by articles and films they may see about a given destination. It is therefore of key importance that journalists and press contacts are kept well aware of Vietnam and are positively inclined to report about it on a regular basis. PUBLIC RELATIONS ACTIVITIES INCLUDE Maintaining close contact with general and specialist media in Spain Influencing and encouraging television stations and specialized channels to feature Vietnam as an ideal holiday destination Maintaining a constant activity of press releases geared to increase awareness of Vietnam in the Spanish media Inviting selected travel writers and photographers to visit Vietnam, focusing primarily on the national media. Encouraging the specialized travel press to run articles featuring Vietnam. These media are widely distributed among Spanish travel professionals who need to be kept well informed on travel developments in Vietnam. FACILITATING TRAVEL Visa requirements are one of the main barriers for Spaniards visiting foreign countries. It would be very welcome if the Vietnamese and Spanish governments could reach an agreement to waive such requirements. Meanwhile, Vietnamese travel professionals should make it very clear to their counterparts that this is nothing individuals can do much about. A similar situation prevails for airport taxes. It was very difficult for Spaniards to accept the inconvenience of having to pay a tax to leave Vietnam when many may have spent all their cash down to the last dong or dollar before going home. But according to Vietnam Airlines, the national flag carrier, starting on November 1st, the departure fee for all international flights departing from Vietnam will be included in the ticket price. For the convenience of customers, after the new policy takes effect in November, this fee will be paid at the time of buying an international ticket from any airline with flights departing from Vietnam, and customers will no longer need to pay a separate fee at the airport. 11

5.4 SALES/PROMOTIONAL VISITS Vietnamese professionals willing to make a visit to their Spanish counterparts should bear in mind the following: THE PRODUCT Should be high quality and suitable for Spanish consumers For affluent Spaniards, image counts for much You should have a thorough knowledge of the product you are trying to sell access routes, selling points, etc. Brochures should be of good quality, supported by visual materials (pictures, CDs, websites), and include rates sheets in Euro Prices quoted to tour operators should be lower than the published retail price and open to negotiation depending on size of order, reliability, etc. THE VISIT Talk to the appropriate staff at the Vietnamese embassy to advise you on how to organize your visit and, possibly, have doors opened for you. Make sure you are travelling at the appropriate time for the business you are seeking. Tour operators should be visited in the spring of the year previous to the one in which you want to sell your product. Avoid public holidays (see list below) and major promotions or trade events. Know the main selling points of your product. Do not expect Spanish professionals to have a deep knowledge of Vietnam, unless they specialize in your country. Do your homework before going to find out who are your real customers. Avoid trying to sell to people who are already working for your competitors. Bring a plentiful supply of business cards (both in Vietnamese and Spanish/English) and brochures for any contacts you want to make. Serious preparation is the key to a successful sales/promotional visit. Gather as much information as you can on the Spanish market and select those contacts best suited to you. 12

DOING BUSINESS IN SPAIN 6 DOING BUSINESS IN SPAIN 6.1. NATIONAL HOLIDAYS Other than their yearly holidays, Spaniards have a number of public holidays over the working year. Some of them are national days; others are only observed in the different autonomous regions (see above, under Overview). National holidays are January 1: New Year s Day January 6: Epiphany May 1: Labour Day Variable: Good Friday Variable: Corpus Christi July 25: St. James August 15: Assumption Day October 12: National Day November 1: All Souls Day December 6: Constitution Day December 8: Immaculate Conception Day December 25: Christmas Day Although there are only two official holidays in the Christmas and New Year period, businesses do not work at full speed between December 24 and January 6. Spaniards also tend to take puentes or bridges, meaning that many will try to take time off when a working day falls between a holiday on a Thursday and a Saturday or between a Sunday and a holiday on a Tuesday. Most offices, both public and private, are closed on Saturdays and Sundays. August is a very inconvenient time to travel for business, as many companies will be closed for a part or the whole of the month. It is advisable to check on holidays in the different autonomous regions before taking a trip to them. Information can be found at http://www.planetware.com/national-information/spain-tourist-offices-national-holidays-e.htm#holidays 13

6.2. WORKING AND LEISURE HOURS Even though habits are changing quickly since accession to the European Union, you should bear in mind that Spaniards have unusual ways of work and leisure. Lunch usually starts after 2pm and dinner is often taken between 9 and 11pm. Most offices begin working at 9am. If you are invited to go out at night, bear in mind that the activities can last until very late indeed. 6.3. BUSINESS ETIQUETTE APPEARANCE Spaniards dress more formally than many other Europeans. It is important to project good taste in apparel. Business attire includes well-made, conservative suits and ties. Avoid flashy colours, as it is not popular to stand out. Shorts are not usually worn in public. In Spain, crossing your fingers has several good meanings, usually things such as "protection" or "good luck". Although many Spanish businesspeople speak English, it is a good idea for foreigners to have their materials printed in Spanish. Business in Spain is often a result of personal relationships. While the relationship building process takes time, it is imperative to gain such relationships if you are to be effective in Spain. Be prepared for complicated business negotiations. Often numerous people will be speaking simultaneously. Handshaking is the normal way of greeting people. Men who are close friends will often exchange a hug. Women who are close friends usually meet and part with a kiss on each cheek. Negotiations are usually an extremely long and arduous task; do not be in a rush to close a deal in Spain. Dining is usually associated with establishing business in Spain. You will often be invited to lunch or dinner. BEHAVIOUR The family is very important thing to most people in Spain. Time is relaxed. Spaniards have become rather punctual. They often consider deadlines an objective but do not become overly concerned if the deadline is not achieved. 14

LIST OF USEFUL CONTACTS 7 LIST OF USEFUL CONTACTS 7.1 PROFESSIONAL ASSOCIATIONS AMAVE (Spanish Association of Tour Operators) http://www.amave.org/indexnew.asp AEDAVE (Professional Association of Spanish Travel Agents http://www.aedave.com/publico/aedave/aedave.shtm 7.2 MAIN TOUROPERATORS FOR VIETNAM Ambassador Tours http://www.ambassadortours.es/static/3933.p DF Catai Tours http://www.catai.es/ Excellence Tours http://www.excellencetours.com/ Kuoni http://193.135.59.205/kuoni/folletos.asp Politours http://www.politours.com:8082/indexlt.htm 7.3 MAIN SPECIALIST TRAVEL AGENCIES Bidon5. Expediciones y Viajes http://www.bidon5.es/ Caravanserai Viajes http://www.caravanseraiviajes.com/ Club Marco Polo https://www.clubmarcopolo.es/principal.htm Ko-Samui Viatges http://www.ko-samui.com/spanish/adventure/welcome.html Nobel Tours http://www.nobeltours.com/ Pasaporte3 http://www.pasaporte3.com/ Terres Llunyanes http://www.terresllunyanes.com/ Transrutas http://www.transrutas.com/ Trekking y Aventura http://www.trekkingyaventura.com Viajes Planeta Azul http://www.planetaazul.net/ Viajes Tuareg http://www.tuaregviatges.es/ Nhµ xuêt b n Lao éng X Héi ChÞu tr ch nhiöm xuêt b n: Gi m èc NguyÔn nh Thiªm Tr nh bµy: HAKI ng ký kõ ho¹ch xuêt b n sè: 731-2006/CXB/8-187/L XH cêp ngµy 23-10-2006 Sè lưîng: 400 quyón Ngµy nép lưu chióu: Th ng 10 n m 2006 15