Competitiveness of Greek tourist industry Presented by: THR, - PowerPoint PPT Presentation

Athens 2. What do they like less/more? kynthos Heraklion Absence of crowd / traffic Cleanliness well-kept Access / local transport Shopping facilities Entertainment night life Personal safety / security Cultural natural attract. Beach facilities /equipm. Food outside hotel Hotel Overall Friendliness / Hospitality 1 2 3 4

Athens 3. What other destinations do they consider? kynthos Heraklion Preference Crete 19% Corfu 13% Rhodes 11% 13% of answers: Ibiza 6% Did not reply / Mallorca 5% don’t know Malta 5% Menorca 5% Kefalonia 4% Kos 4% Santorini 4%

Athens 5. What do the tourists want in Zakynthos? kynthos Heraklion Hotel Overall 76% Cleanliness and well-kept environment 44% Personal safety and security 41% Friendliness and hospitality of local 39% people Beach facilities and equipment 32%

Athens 6. What influences more the satisfaction? kynthos Heraklion Hotel Overall Cleanliness / well-kept environm. Personal safety / security Friendliness / Hospitality Beach facilities /equipm. Food outside hotel Entert. night life Cultural natural attract. Access / local transport Shopping facilities Absence of crowd / traffic 0,0 0,5 1,0 IMPORTANCE IMPACT

Athens Zakynthos Heraklion

Athens 1. Are they satisfied? kynthos Heraklion Overall Value for satisfaction money =3,38 =3,05 Unsatisfied 4% 17% Satisfied 54% 59% Completely 42% 24% satisfied

Athens 2. What do they like less/ more? kynthos Heraklion Entertainment / night life Shopping facilities Food outside hotel Access / local transport Absence of crowd / traffic Cleanliness well-kept Beach facilities / equipment Personal safety / security Cultural natural attractions Hotel Overall Friendliness / Hospitality 1 2 3 4

Athens 3. What other destinations do they consider? kynthos Heraklion Preference Rhodes 13% Mallorca 6% Corfu 4% 8% of answers: Kos 3% Did not reply / Santorini 3% don’t know Malta 3% Sharm El Sheikh 3% Gran Canaria 2% Chania 2% Formentera 2%

Athens 5. What do the tourists want in Heraklion? kynthos Heraklion Hotel Overall 84% Cleanliness and well-kept environment 44% Friendliness and hospitality of local 43% people Cultural/natural attractions 35% Personal safety and security 35%

Content Introduction Research Strategies Partnership

Competitiveness is managed at cluster level

Strategies for a more competitive industry

1. Value creation is a condition for profitability Increasing price and reducing cost is not the right way. It is better to increase the WTP and reduce the suppliers cost.

2. Manage the competitiveness within the destinations The destinations should not wait for the other to resolve their problems….. because these won’t be resolved.

3. Beware of the peril of “high volume markets” Ensure that you will be able to capture value. Niche markets can be beautiful.

4. Revise the portfolio of each cluster Diversify. Identify attractive sectors (nowadays over 60). Progressively abandon sectors without attractiveness.

5. Create attractive industry structures It’s necessary to have a “Minimum Efficient Size” for creating more value. The small ones cannot follow which helps the consolidation of industry.

6. Create competitive advantage Know how your activities affect costs and WTP through the chain. Re-engineer the value chain.

7. Build on your cluster strengths It is good to reduce the weaknesses. But only if this does not reduce the strengths.

8. Understand the limits of your advantage Each advantage is specific for its market and in a specific context. Do not pretend that it serves you for everything.

9. Understand that the “value” is in experiences It is neither in beds nor in the quality.

10. Cooperation, cooperation, cooperation… Public-public. Private-private. Public-private.

The Puerto de la Cruz case

Puerto de la Cruz: 20 years without competitors � Sun and beach � The Teide landscape � Hotel inventory � Prestige � Closeness to the airport

The Problems arrived � New competitors � Clients with new interests � Low capacity to serve the new clients � Aviation accident � New airport in the south

Searching for the solutions Option 1 Decrease prices Client barely Small sophisticated investment Not very complex product Diabolic circle

Searching for the solutions Option 2 Develop Competitive Advantages Invest in Human Sophisticated Resources client Complex product Precious circle

Weak Diamond Strategy There is no common strategy Factors Demand Lack of investment Lack of knowledge Cluster in capacitating on the new market tendencies Lack of team work within the cluster

Action plan Strategy Develop the Factors Demand strategy Improve the Understand the Cluster advanced market and its factors tendencies Develop the cluster

1. Creation of a working committee � Public and Private sector � Business meetings � Presentations to cluster � Will be maintained in the future

2. Creation of a mix fund � 50% public sector � 50% private sector � 900.000 € for promotional actions and improvement of competitiveness

3. Concrete strategies are being discussed and agreed upon � Product development: Health � Implications: � Coastal adaptation � Hotel infrastructure adaptation (benchmarking trip) � Creation of pedestrian areas, etc.

4. The market opportunities are being studied � Interviews with Tour Operators, Travel Agencies and Tourists � Spaniards � Northern Europe � Tendencies and strategic options Wellness sector

5. Puerto de la Cruz recovers the coastal area

6. Benchmarking trip � Main health centres � Double objective: learn and negotiate the possibility to create subsidiaries

7. Short term product development is being discussed and agreed upon Short term: attraction of events , adaptation of the sand areas , attraction of business meetings , special interest (National Parks, astronomy)..

8. Creation of the Valle de la Orotava Corporative Identity

9. Improvement of quality � Implantation of an integrated quality system: directed to all tourist services (from taxis to beach cleaning service, police, tourist information, car rental, restaurants, etc.)

Conclusion The comparative advantages do not last forever; these have to be surrounded by some good competitive advantages

Content Introduction Research Strategies Partnership

Cruise business from the USA to the Occidental Mediterranean Opportunities for Barcelona 1. Growth of cruise sector 2. Mistakes of Genova Goal To become the main “home port” in this part of the Mediterranean seas

� Genova mistake 1: No slots available in Genova between 7 and 10 a.m. � Barcelona reaction: slots guaranteed from 8 to 10 a.m.

� Genova mistake 2: 70 minutes for immigration, customs and baggage claim � Barcelona reaction: All process guaranteed in 30 minutes

� Genova mistake 3: Difficult access to buses � Barcelona reaction: special parking

� Genova mistake 4: Very difficult transport of luggage to the harbour � Barcelona reaction : By “magic” the luggage appears at 6p.m. In the ship (clients’ room)

� Genova mistake 5: Difficulty to organize city tours � Barcelona reaction: Special Tourist Bus with departure at the airport

� Genova mistake 6: Anarchic and disperse shopping � Barcelona reaction: “Barcelona Shopping line”. 1200 signs + special shopping guide

� Genova mistake 7: Difficulty to book rooms for pre and post cruise � Barcelona reaction: Creation of the “Barcelona Centre Hotels” and opening of two sales offices in NY and Miami

3. Other competitive activities � Special Horse Show by Municipal Police � Creation of 8 special excursions pre & post cruise � Art triangle: Dalí Museum, Picasso Museum, Miró Foundation � Modernist Art Circuit � Barcelona: THE FUN CITY

4. Result of the match Market share 1995 2000 Genova 67% 25% Barcelona 15% 65% Others 18% 10% Genova Barcelona 0 1

5. Partnership 1. Tourist Board of Barcelona � Coordination of the whole project 2. National Airports Authority � Slots and guarantee 3. Handling company � Special handling system 4. Guardia Civil (Customs) � Reengineering of the customs procedures 5. National Police � Reengineering of the immigration procedures

5. Partnership 6. Luggage bell boys � Special identification system for luggage 7. Transport company � Special transport to the harbour 8. Tourist Bus � Matching its schedules to airplanes’ arrival 9. Barcelona Chamber of Commerce � Shopping line 10.Ground Operators Association � Creation of special excursions

5. Partnership 11.Barcelona Centre Hotels (association) � Created the association and opened USA sales offices 12.Customs of the harbour � Special procedures 13.Transporters of luggage in the harbour � Put the luggage in the room 14.Guardia Urbana de Barcelona � Special show

Total 14 players � Some 20 “value chains” linked � 300 million us $ new business

Resources + Public Infrastructures + Services + Organization + Private Comercialization Offering =

A Shift from Competing Businesses to Business Networks Traditional = “Competing Businesses” Company Company Company Company A B A B Company Company Company Company C D C D Emerging = “Business Networks” Company Company B B Strategic Consortium Alliance 1 Company Company Company Company A D A D Joint Venture Cooperative Company Company 2 Marketing C C Arrangement 3