Premier vision annual report 2013v2

PREMIER Vision

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2013 © Fintrax Group - All rights reserved

PREMIER TAX FREEW O R L DW I D E TA X F R E E S H O P P I N G 3

PREMIER Vision

COUNTRY ANALYSIS

United Kingdom

France

Italy

Spain

Germany

Portugal

Czech Republic

Greece

Singapore

TRAVELLER PROFILE

China

Middle East

Russia

Brazil

United States

Japan

Australia

Norway

Thailand

South Korea

p 5

Index

S U M M A R Y

p 9

p 13

p 17

p 21

p 25

p 27

p 29

p 31

The impact of travel and tourism

on economic growth is signi-

ficant. The tourism industry is

forecast to grow at an average

of 4% annually over the next 10

years. This growth will come from

an increase in trips per traveller

and also from first time travel-

lers in emerging markets. This all

presents exciting opportunities

for stakeholders in one of the

world’s largest industries.

More and more people are now

travelling worldwide, especially

from emerging economies such as

China, Thailand, Russia and Brazil.

Some of the factors that contri-

buted to the rise in the number

of tourists are their increase in

purchasing power and a bigger

offer of airline routes, including

new flights from low cost airlines.

From January to September 2013,

845 Million tourists travelled

worldwide, an increase of 5%

compared to 2012.

Europe is still the most visited re-

gion in the world with an increase

of 6% in inbound tourists compa-

red to 2012, followed by Asia-

Pacific which also registered a

positive growth of 6%. One of the

reasons for Europe’s popularity

is the importance of their retail

brands and the attraction they

hold in the eye of the internatio-

nal shopper. A more advanced

middle class has emerged, espe-

cially from the BRIC countries

that are using their increase in

disposable income to travel more

and purchase luxury products.

Chinese tourists are now the

biggest tax free shopping spender

and in most European countries

they accounted for over 20% of

the total tax free sales. They are

followed by tourists from Rus-

sia, the United States and the

Middle-East. While Asian visitors

are highly represented in our list

of top spending nationalities, this

spend can be increased if visa

restrictions are lightened. Chinese

tourists made 97 million foreign

trips in 2013, compared to 10

million in 2000. Higher disposable

incomes in the world’s number

two economy and looser foreign

travel restrictions are increasing

access to travel. This part of the

world has been economically

vibrant for the past number of

years and in the year 2020, it is

predicted that Asia will be home

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PREMIER TAX FREEW O R L DW I D E TA X F R E E S H O P P I N G 2013 © Fintrax Group - All rights reserved

4

PREMIER Vision

S U M M A R Y

Fintrax Group From trade associations, trade press, company research, trade and external sources:

UNWTO – World Tourism Barometer, Euromonitor International, WTTC – World Travel and Tourism Council, AT – Kearney (Global Retail Development Index), Atout France, VisitBritain, ITB – Berlin World Travel Trends Report - 2013/2014, Stark Tourism Associate – Russia Tourism Report – 2013, International Passenger Survey Figures - Office for National Statistics Russia, Insights - Japan National Tourism Orga-nisation, The Federation of Norwegian commercial and service enterprise, Mc Kinsey, CNN, BBC, City A.M - www.cityam.com, A view on cities - www.aviewoncities.com, Hurun report -2012, Weibo tracking report, Group M – Knowledge – CIC, ‘The young luxury consumers in China’ - 2013, Virada – Understand Arabia Limited, ‘The Middle East Outbound Travel Market with special insight into the image of Europe as a destination’ -2012.

to a Middle Class population of 1.7

billion which is over double the size

of Europe’s Middle Class.

This rise in consumption has enabled

a whole new market the opportunity

to fly to long haul destinations and

spend on luxury products that were

once the mainstay of only the few

super rich.

Europe is set to benefit from this

growth in spend as it is an attractive

visitor destination and the home of

the world’s top luxury brands. With

the international shopper average

transaction value almost three

times higher than that from a local

shopper, it is no wonder that these

shoppers have become extremely

important to the profit margins of

fashion retailers throughout Europe.

It is forecasted that over 100 million

Chinese tourists will travel abroad in

2014. The international shopper has

never been more important to retai-

lers in Europe and this trend is set to

continue.

AMERICAS

+ 3 %

ASIAPACIFIC

+ 6 %

AFRICA

+ 5 %

EUROPE

+ 6 %

FIG 1: International tourist ArrivalsJanuary-September 2013 (compared to the same period in 2012)

MIDDLEEAST

+ 0.3 %

WORLD+ 5 %



£ 292 Average transaction value

Minimum Amounteligible for tax free sales

£ 25

COUNTRY Analysis

United Kingdom


6

UN

ITE

D K

ING

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M

The UK is the sixth largest internatio-nal tourism destination ranked by visi-tor numbers and London is the most popular city in the UK attracting over 16 million tourists per year. 4.9 mil-lion people visited London from July to September 2013, an increase of 20% on the same period in 2012 when the Olympics took place. Edinburgh was the only other city in the UK that ma-naged to attract more than one mil-lion visitors and Manchester is the third most visited. Leisure arrivals account for three arrivals in four and museums were the fastest growing category of tourism attractions in 2013 recording a 5% increase in value sales.

Visitors from visa-requiring nations accounted for around 11% of all visi-tors to the UK (1.7m) and they gene-rate around £3bn in revenue (19% of the total) due to their high spend per trip (£866 per person vs. the average of £580 per person). Chinese tourists were the leading spenders in tax free sales in 2013, a growth of 29% on the number of transactions compa-red to 2012. Although the number of Chinese tourists has been increasing in the UK, they could be more nume-rous if restrictions for visas were sof-tened. The UK visa system has been criticized for hampering inbound tou-rism. Nonetheless, the UK Chancellor has recently announced that Chinese visitors who are given a Schengen visa will also receive a visa to enter the UK, provided they travel with a selection of approved tour operators. Business people will also be able to apply for

a “super-priority” visa, which will be processed within 24 hours rather than a week. Tourists from the United States were the second biggest spenders with growth of almost 40% on the num-ber of transactions. There has always been strong tourism links between the United States and Europe, however, the strengthening of the US Dollar and a weakening British Pound has given American visitors increased spending power in recent months.Within the Middle East, the important source markets are the six nations also known as Gulf countries: Saudi Arabia, United Arab Emirates, Kuwait, Bahrain, Qatar and Oman. They accounted for 22% of total sales, ma-king them the top region for tax free shoppers in the UK. Kuwait stood out amongst consumers from the Middle-East and performed strongly especially in the UK, accounting for 6% of total sales, an increase of more than 40% compared to 2012. One of the rea-sons for this increase can be attributed to British Airways ongoing investment in the country as they increased capa-city on their Kuwaiti route by more than 20%. Secondly, VisitBritain (UK Tourism Board) have run a number of successful marketing campaigns in recent months in the Middle East, fo-cusing especially on Kuwaiti travellers. Tourists from Saudi Arabia and the United Arab Emirates were also more numerous in the UK with an increase of 34% and 40% on the number of transactions. This trend should conti-nue as from January 1st 2014, citizens from Oman, Qatar and United Arab

Emirates won’t need a visa to enter the UK if they stay less than 6 months. They will only need to fill an on-line request at least 48 hours before entering the country. The exemption should also be extended to citizens of Kuwait during 2014. These changes come after an increase of 29% on the number of visas requested by the tourists from the Middle-east. The rise in the number of tourists should continue in 2014 and VisitBritain predicts new tourism heights will be reached in 2014. They forecast an increase of nearly 2% in overseas visitor numbers that will result in a record-breaking visitor spend of around £21.5 billion, representing growth of 4.2% in nominal terms. Additionally, the agency predicts that the volume of visits will return to pre-global financial crisis record levels of 2008, with 32.6 million arrivals in 2014.

United Kingdom

AUSTRALIA Traveller profile p.45

CHINA Traveller profile p.33

UNITED STATES Traveller profile p.41

KUWAIT

NORWAY Traveller profile p.47

* Nationalities to follow in 2014



Top 10 Nationalities by sales value

China 18.4% 26.6% £506

United States 6.2% 23.7% £186

Kuwait 6.1% 42.2% £334

Saudi Arabia 4.3% 23.8% £381

United Arab Emirates 4.3% 21.2% £432

Russia 4.2% 13.8% £305

Nigeria 3.6% 31.4% £298

Thailand 3.5% 46.0% £455

Qatar 3.1% 19.4% £492

Australia 2.8% 21.3% £139

Total 56.5%

Market Share Sales Growth in Sales

Average

Transaction ValueNationalities

UN

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Top 10 Nationalities

by number of

transactions

China 10.6% 29.3%

United States 9.8% 38.8%

Australia 6.0% 43.3%

Norway 5.5% 55.9%

Kuwait 5.3% 43.2%

Russia 4.0% 36.1%

Nigeria 3.5% 45.7%

Saudi Arabia 3.3% 34.0%

Canada 3.0% 43.6%

United Arab Emirates 2.9% 40.8%

Total 54.0%

Market Share Transactions Growth in Transactions

Nationalities

NORWAY

AUSTRALIA

UNITED STATES

CHINA

KUWAIT

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

4%

3%

2%

9%

8%

7%

6%

14%

13%

12%

11%

19%

18%

17%

16%

Activity tracker by % of annual volume

United Kingdom

Note: 17% of the total annual transactions from Kuwaiti were processed in August.* Nationalities to follow in 2014


8

Number of transaction by sales range

Less than £100 50.2%

From £101 to £200 23.5%

From £201 to £500 16.9%

From £501 to £1,000 5.1%

From £1,001 to £2,000 2.2%

Greater than £2,001 2.0%

UN

ITE

D K

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Top 3 cities

for tax free sales

Top 4 weeks

for tax free sales 2013

London - estimated to have welco-med 16 million tourists in 2013. Between July and September, 4.9M visited the city, a growth of 20% on 2012. The arrival of the Royal baby, a long hot summer and popular exhi-bitions around the capital’s mu-seums are all credited for bringing more tourists to the city;

Bicester Village - a shopping outlet in Oxfordshire, opened in April 1995 and is the main attraction in Bicester;

Edinburgh - receives over 1 million tourists every year captivated by the Edinburgh Castle and the Royal Bo-tanic Gardens, among other attrac-tions. Tourists from China, the United States, Norway and Australia are some of the leading shoppers in Princes Street and Multrees Walk.

London

Glasgow

Liverpool

Bristol

1

2

3

LONDON

BICESTER

EDINBURGH

24th to 30th JUNE 2013 Week

26

1st to 7th JULY 2013

8th to 14th JULY 2013

12th to 18th AUGUST 2013

Bicester

Edinburgh

Week

27

Week

28

Week

33



€1,170 Average transaction value


€175.01

COUNTRY Analysis

France


10


FR

AN

CE

Currently France is the most visited country in the world with more than 80 million foreign arrivals annual-ly and around 35 billion euro in tourism revenue. The most visited cities are Paris, Lyon, Toulouse and Nice. Although more than 50% of all tourists in France are from Eu-rope, the number of tourists from non-EU countries has been increa-sing steadily. The French hotel industry registered 38.6% more occupation from Chinese tourists in the first quarter of 2013. Accor-ding to the World Tourism Organi-zation, 1.8 million Chinese tourists are expected to visit France alone in 2013/2014.

Busiest months for tax free sales in France are July, August and Sep-tember, accounting for 32% of the total number of transactions in 2013. Chinese tourists were by far the leading spenders in tax free sales, representing 27% of the total sales, a growth of 29% compared to 2012. France is their favourite destination for luxury shopping and since the Franco-German visa application centres were opened in different cities in China in October 2012, there has been a rise of 20% on the number of visas issued. Most Chinese tou-rists consider shopping for luxury goods the main purpose of a trip to France. Remarkably, between 2010 and 2013 the growth in tax free sales for Chinese tourists was over 300%.

Visitors from Thailand registered the second highest growth in 2013, an increase of 17.5% compared to 2012. From 2010 to 2013 growth was over 170%. Europe is the se-cond most popular destination for outbound Thai travellers, just behind East Asia.

Russian tourists were the second lea-din spender, accounting for 11% of total sales, a growth of 4% compa-red to 2012. Russians are traditional buyers of luxury products in France. They also have contributed to the emergence of a luxury segment in new destinations like the French Riviera and Courchevel. There is a strong belief that the possession of super-premium brands can assure better positioning in Russian society, therefore, Russian millionaires are actively demonstrating their wealth through visible luxury branded goods. Luxury writing instruments, watches and jewellery will remain core products for these wealthy cus-tomers. Customization of products is extremely attractive to these super rich and elite customers.

Tourists from the Unites States were the third biggest spenders in France growing by 7% compared to 2012. Meanwhile, tourists from Brazil were less numerous in 2013 decrea-sing by 12% on sales year-on-year. Although France is considered one of their favourite places for vaca-tion, Brazilians will travel more often to shop in the United States due to

the proximity and lower prices, especially among mid-range brands. Additionally, the devaluation of the Brazilian Real (es-timated at 17% in 2013) also contribu-ted to this decrease in sales.

International tourist arrivals are expected to reach 87 million by 2015 in France. The strategy of the French tourism board is to increase the tourism sector value by 3.5% per year and to position France as the top country in terms of inbound tourism receipts, to reach €49 billion in 2020. French Tourism Board also aims to attract more “high-end” travellers by promoting the country’s numerous at-tractions – especially in regions such as Rhône-Alpes and the Landes to comple-ment the well-known and traditional at-tractions of Paris and the French Riviera.

France

THAILAND Traveller profile p.49


RUSSIATraveller profile p.37


SOUTH KOREA Traveller profile p.51




Note: 14.5% of the total annual transactions from Chinese were processed in July.* Nationalities to follow in 2014


China 26.8% 28.6% €1,779

Russia 11.4% 4.5% €1,310

United States 5.7% 7.3% €1,059

Hong Kong 4.7% -2.6% €1,948

South Korea 4.2% 8.8% €1,192

Japan 3.6% -35.6% €802

Brazil 3.2% -11.9% €718

Saudi Arabia 2.5% -11.6% €1,311

Thailand 2.4% 17.5% €1,555

Singapore 2.4% -1.5% €1,428

Total 66.8%


Average


FR

AN

CE


by number of

transactions

China 17.6% 21.7%

Russia 10.2% 2.6%

United States 6.3% -1.0%

Japan 5.3% -32.7%

Brazil 5.3% -17.7%

South Korea 4.1% 13.2%

Morocco 2.9% -2.7%

Hong Kong 2.8% -5.0%

Algeria 2.4% -5.0%

Saudi Arabia 2.2% -3.3%

Total 59.1%


Nationalities

SOUTH KOREA

THAILAND

RUSSIA

CHINA

UNITED STATES


4%

3%

2%

9%

8%

7%

6%

14%

13%

12%

11%

19%

18%

17%

16%

France

SOUTH KOREA Traveller profile p.51


12


Less than €250 28.3%

From €250 to €500 35.9%

From €500 to €1,000 20.5%

From €1,000 to €2,000 9.8%

From €2,000 to €3,000 2.6%

Greater than €3,000 2.8%

FR

AN

CE

Top 3 cities

for tax free sales

Top 4 weeks


Paris - receives around 16 million tourists every year and it is, along with London, the most visited city in Europe. Main attractions are the Notre-Dame Cathedral, Louvre Mu-seum and Eiffel Tower. Paris is home to several French luxury brands and also accounts for some of the world’s most famous shopping streets such as Champs-Elysées and Avenue Montaigne;

Serris - located 40 min outside Paris and is well known for the outlet La Vallée Village and Disneyland Paris (15.9 million tourists visited Disney-land in 2012). Tourists from China, Russia, Middle-East and Brazil are the most frequent shoppers in La Val-lée;

Cannes - part of the French Riviera and is renowned for its beaches and the Film Festival in May. During the summer months, the city has a huge influx of tourists, especially from Rus-sia.

1

2

3

PARIS

SERRIS

(Val d’Europe)

CANNES

24th to 30th JUNE 2013




Paris

Serris

Cannes

Lyon

Bordeaux

Toulouse

Week

26

Week

27

Week

33

Week

34



€1,033 Average transaction value


COUNTRY Analysis

Italy

€154.94


14

ITA

LY

Italy is home to several luxury brands and combines beautiful landscapes, historical cities, re-nowned famous cuisine, beaches and ski stations. The most visited cities are Rome, Milan, Venice and Florence. Europe and the United States are the biggest markets for inbound tourism in Italy.

Nearly 12 million Germans vis-ited Italy in 2012, making it the number one tourist market for the country, followed by 4 million visitors from the UK and 3 million from the United States. Tourists from the United States spent 11% more in tax free sales in 2013 compared to 2012. Although Chinese tourists have slightly few-er transactions compared to Rus-sians, they will dedicate a higher budget for shopping and are now the top spending nationality on luxury goods.

They accounted for 22% of the total sales recorded by Premier Tax Free, a growth of 35% in sales between 2012 and 2013 and 220% from 2010. Accord-ing to the Italian Embassy in Chi-na, visas for tourist groups from Beijing have increased by about 30% in 2012. Italy has been ac-tively promoting the country in China where a Chinese website for tourism in Italy was launched along with a hotline in Chinese. Their aim is to have over one mil-

lion Chinese tourists visiting Italy during the Milan Expo in 2015.

Tourists from China are the high-est spenders representing 22% of the tax free sales in Italy and al-most 36% growth in sales (+17% growth in the number of transac-tions). They recorded the second highest growth after tourists from Ukraine and this trend should continue in 2014 as Chinese tourists are attracted to Italian Food, Culture and Fashion.

Russian shoppers are the second highest spenders with growth of 17% in the total sales from 2012 (first in number of transactions).

For Russian tourists, Italy is a popular destination for sightsee-ing trips, beaches and ski resorts. A favourite beach resort is Forte dei Marmi in Tuscany. Travellers both rich and budget-conscious are attracted to Milan and its fashion sales.

Although Japanese visitors had a negative growth between 2012 and 2013 (-31%), they remain the third biggest spenders in Italy. Tourists from Thailand en-tered the top 10 for the first time in 2013 with a growth of almost 30% in sales. They have the sec-ond highest average spend per transaction (€ 1380), after tour-ists from Hong Kong (€ 1690). The highest growth in sales was

from tourists from Ukraine (+ 42%) and if the same growth is registered in 2014, they will surpass spend from Brazilians.

The National Agency of Tourism es-timated that more than 49 million tourists visited Italy in 2013 and the 2014 forecast offers even bet-ter prospects, with an additional 3% increase on the number in inbound tourists. Non-European countries are expected to grow by 4.8% this year, thanks to the stability of the American market and rise of purchasing power from emerging economies.

Italy

THAILAND Traveller profile p.49


RUSSIA Traveller profile p.37

JAPANTraveller profile p.43

UKRAINE





China 22.5% 35.9% €1,287

Russia 20.8% 17.7% €1,053

Japan 5.3% -31.0% €728

United States 5.0% 11.6% €830

Hong Kong 4.8% 17.4% €1,690

Taiwan 4.7% -1.0% €1,116

Singapore 3.1% -2.6% €1,251

Thailand 2.9% 29.5% €1,379

Brazil 2.5% 7.2% €791

Ukraine 2.4% 42.3% €1,183

Total 74.0%


Average


ITA

LY


by number of

transactions

Russia 20.4% 17.3%

China 18.0% 15.1%

Japan 7.5% -30.3%


Taiwan 4.3% -7.0%

Brazil 3.2% 0.1%

Hong Kong 2.9% 2.5%

Singapore 2.6% -6.7%

Thailand 2.2% 21.9%

Ukraine 2.1% 37.7%

Total 69.5%


Nationalities

UKRAINE

THAILAND

RUSSIA

CHINA

UNITED STATES


4%

3%

2%

9%

8%

7%

6%

14%

13%

12%

11%

19%

18%

17%

16%


Note: 19% of the total annual transactions from Thais were processed in April.

Italy



16



From €251 to €500 27.9%

From €501 to €1,000 20.4%

From €1,001 to €2,000 14.5%

From €2,001 to €3,000 6.4%


ITA

LY

Top 3 cities

for tax free sales

Top 4 weeks


Rome - 8 million tourists visited Rome and the most popular historical sites are the Coliseum, St. Peter’s Basilica and Circus Maximum. Via Condotti is one of the most famous streets in Rome and receives a large amount of shop-pers, especially from China, Russia and Japan;

Milan - home to Via Montena-poleone, the most important street in the Milan Fashion District and home to many luxury brands. Tourists from Rus-sian are biggest tax free shoppers in Milan, followed by tourists from China, Hong Kong and Ukraine. The Milan Cathedral, one of the largest Gothic Cathedral is the main tourist attraction;

Florence - a Renaissance city located in Tuscany, is famous for its cathedrals, elegant buildings and squares such as Piazza della Signoria. The most famous streets for shopping are Via Tornabuoni and Via della Vigna Nuova that re-ceives shoppers from Russia (biggest shoppers in Milano), China, Hong Kong and Ukraine.

1

2

3

ROME

MILAN

FLORENCE


8th to 14th JULY 2013

16th to 22th SEPT 2013


Rome

Palermo

Milan

Florence

Napoli

Venice

Week

27

Week

28

Week

38

Week

39



€373 Average transaction value


COUNTRY Analysis

Spain

€90.15


18

SP

AIN

Spain is the second most visited country in Europe and the fourth worldwide. Besides European tourists from the UK and Ger-many, Spain has been attracting more tourists from Russia and Latin America. From January to December 2013, 1.58 Million Russians visited Spain, a growth of 31.6% compared to the same period in 2012.

The Spanish Tourism Board cred-its a rise in the number of direct flights to Spain, easier visa rules and the growing appetite of Rus-sia’s middle class for foreign travel as the main reasons for the continued success of Spain’s travel market. Furthermore a new Spanish Visa application centre opened in Omsk in March 2013. Situated almost 2,300 kilome-tres from Moscow, in the heart of south western Siberia, the open-ing of this centre will encourage the city’s 1.2 million habitants to discover Spain.

Tourists from South America were also more numerous, account-ing for 20% of total transactions processed in Spain, a growth of 38% compared to 2012. In May 2013, the Spanish Tourism Office launched a campaign to attract more tourists from Latin America. Entiled “I need Spain”, based on the sanctuary of their country, as well as its cultural attractions, large choice of shopping venues

and the vast array of high end hotels.

Chinese visitors surpassed tour-ists from the United States and are now the second biggest spenders in Spain, a growth of more than 40% on total sales. According to the Spanish Tourism Board, in the first 10 months of 2013 there was a 33% rise in Chinese tourists to the country.

They predict that over 200,000 Chinese tourists visited Spain in 2013 (177,000 in 2012). Their aim is to welcome 1 million Chi-nese tourists in 2020. To reach this goal, it essential to increase the number of direct flights from China to Spain and teach the staff at the stores basics of Mandarin and cultural aspects . Today there are only four direct connections a week, while France and Ger-many have over 60 direct flights a week.

The total number of tourists in 2013 surpassed 2012; from January to December 60.6 mil-lion people visited Spain, an in-crease of +5.6% from 2012. The total spend from foreign tourists reached 59 billion euros (+ 9.6%) and it is a significant boost to the Spanish economy, which depends on tourism for more than 10% of its economic activity. Most visited cities are Barcelona, Madrid, Se-ville and Malaga. The region of

Cataluña received 27.1% of the total number of tourists in Spain, accord-ing to the Spanish Tourism Board.

This trend should continue as some European airlines announced that they are adding extra routes to Spain to fulfil the Autumn/Winter season.

Ryanair also announced new routes to their 2013-2014 winter schedules and Norwegian Air increased the number of direct flights to Tenerife, Gran Canaria, Malaga and Alicante.

Spain




BRAZILTraveller profile p.39

MEXICO





Russia 20.5% 49.7% €360

China 10.1% 41.5% €590

United States 3.9% 82.7% €460

Brazil 3.6% 10.5% €296

Mexico 2.8% 25.7% €334

Venezelua 2.2% 41.1% €260

Argentina 2.1% 25.1% €237

Morocco 2.1% 28.5% €338

Ukraine 1.8% 69.0% €462

Singapore 1.6% 44.7% €604

Total 50.7%


Average


SP

AIN


by number of

transactions

Russia 21.3% 51.2%

China 6.4% 33.0%

Brazil 4.5% 17.1%

Argentina 3.4% 39.1%

Venezuela 3.2% 61.2%


Mexico 3.1% 32.7%

Morocco 2.4% 28.5%

Colombia 2.0% 43.4%

Norway 1.9% 296.1%

Total 51.3%


Nationalities

MEXICO

UNITED STATES

RUSSIA

CHINA

BRAZIL


4%

3%

2%

9%

8%

7%

6%

14%

13%

12%

11%

19%

18%

17%

16%


Note: 18.5% of the total annual transactions from Russians were processed in July.

Spain



20



From €101 to €200 49.7%

From €201 to €500 26.8%

From €501 to €1,000 6.2%

From €1,001 to €2,000 2.8%


SP

AIN

Top 3 cities

for tax free sales

Top 4 weeks


Barcelona - most famous for Gaudi’s magnificent Sagrada Familia Cathe-dral, La Rambla street and the Parc Guell. Tourists also visit and shop in Passeig de Gracia street for luxury brands and in Rambla de Catalunya street for fast fashion stores.

Madrid - Spain’s capital welcomed around 6 million tourists every year. Its main attractions are the Retiro Park and the Plaza Mayor. Salamanca Dis-trict Area is the most famous for shop-ping including Calle Ortega y Gasset street where most of the luxury brands are located.

Malaga - lies on the Costa del Sol and seduces tourists with its beaches and a variety of restaurants and bars with trendy rooftop terraces. Malaga has also a great number of museums, including Picasso Museum opened in 2013 and shopping pedestrian areas such as Calle Marqués de Larios near the port.

1

2

3

BARCELONA

MADRID

MALAGA





Barcelona

Almeria

Madrid

Málaga

León

Valencia

Week

27

Week

33

Week

34

Week

35



COUNTRY Analysis

Germany

€542 Average transaction value


€ 25


22

GE

RM

AN

Y

Germany is the fourth most vis-ited country in Europe after Italy, accounting for around 30.4 Mil-lion tourists each year. The most visited cities are Berlin, Munich, Hamburg and Frankfurt. Berlin received 12.4 Million tourists in 2012. Berlin has always been a popular destination for tourists and luxury shoppers from Eastern Europe. It hosts 38 out of the 100 top luxury brands and is attract-ing more and more tourists from China and Thailand. According to German Tourism Statistics, tourists from Asia rank in the top 2 behind European tourists, with share of 11% of the total Ger-man tourism (2.1 million Asia travellers in Germany in 2012), according to IPK International’s World Travel Monitor.

Chinese shoppers accounted for a stunning one third of the total tax free sales in 2013, with in-crease of 14% from 2012. France and Germany opened joint visa centres to facilitate their travel to Europe and Lufthansa is the second largest airline on Europe-China routes (accounting for 37% of the total seats), after Air China. German travel boards have also adopted the strategy of recruiting Chinese speakers for tour com-panies and the retailers. Accord-ing to the German tourism board, since 2009, overnight stays by Chinese in Germany reached 1.6 million in 2012, followed by

Japanese at 1.3 million. In 2012, the most visited regions by Chi-nese travellers in Germany were Bavaria, Hesse, Baden-Wuert-temberg, North Rhine-Westphalia and Berlin.

German tourism authorities are also targeting outbound tourists from Thailand, having identified the country as a key Asian growth market given its rapidly growing middle class. They made 55,000 trips to Germany in 2012 and the tourism board expect that they will receive 100,000 Thai visitors (annually) by 2020. Although the number of tourists is 15 times smaller compared to the Chinese, accounting for only 4% of the total sales, they had the second highest growth of tax free sales from 2012 to 2013 (+39%). Av-erage spend per transaction is also the second highest (€ 1190) just after tourists from Hong Kong (€1230).

Arabic countries are the fourth most important tourists in Ger-many and about 450,000 visi-tors have arrived at German air-ports during the first six months of 2013, 74% of them for tour-ism purposes. They accounted for 9.8% of the total tax free sales in 2013, a growth of 26% from 2012.

In 2014 we should expect a high-er number of tourists from Asia

and the Middle-East. The popular-ity of the country is also linked to its safeness: Germany has been rated by Travel and Tourism Competitiveness Reports as the safest travel destina-tion worldwide. From the Baltic Sea to the Alps, Germany today is more popular as a tourist destination than it has ever been before.

Germany

UNITED ARAB EMIRATES Traveller profile p.35



THAILANDTraveller profile p.49

TAIWAN





China 30.5% 13.9% €645

Russia 15.8% 21.1% €670

Thailand 4.3% 39.2% €1,190

United Arab Emirates 3.3% 16.6% €589

Hong Hong 2.3% 1.5% €1,230

Taiwan 2.2% 14.0% €516

Kuwait 2.0% 50.5% €574

Singapore 1.9% -1.1% €867

Ukraine 1.8% 24.0% €850

Switzerland 1.8% 30.2% €289

Total 65.9%


Average


GE

RM

AN

Y


by number of

transactions

China 25.7% 9.5%

Russia 12.7% 21.0%

Switzerland 3.3% 45.4%

United Arab Emirates 3.0% 17.6%

Japan 2.4% -10.1%

Taiwan 2.3% 22.7%

Thailand 2.0% 27.5%

Kuwait 1.9% 65.4%


Brazil 1.3% 12.8%

Total 56.3%


Nationalities

TAIWAN

UNITED ARAB EMIRATES

RUSSIA

CHINA

THAILAND


4%

3%

2%

9%

8%

7%

6%

14%

13%

12%

11%

19%

18%

17%

16%


Note: 24% of the total annual transactions from tourists from United Arab Emirates were processed in August.

Germany



24



From €101 to €200 22.6%

From €201 to €500 24.7%

From €501 to €1, 000 10.5%

From €1,001 to €2,000 6.1%


GE

RM

AN

Y

Top 3 cities

for tax free sales

Top 4 weeks


Munich - the third largest city in Ger-many and most visited attractions are the historic square Marienplatz, the Cathedral Frauenkirche and the beer hall Hofbräuhaus. The most famous streets for shopping in Munich are Maximillianstrasse and Theatinerstraße for luxury brands, and Kaufingerstraße for its department stores

Frankfurt - the main places to shop are in the pedestrian zone of Zeil. This shopping area has a large concentra-tion of luxury boutiques, department stores and a modern shopping centre with 10 floors called `Zeil Galerie’.

Berlin - most visited attractions are the Berlin Wall, the Brandenburg Gate and the historic Reichstag building. In the shopping streets of Kurfürsten-damm and Friedrichstrasse many ex-clusive and luxury products can be found, while young adults and students normally go shopping at Hackischer Markt. Additionally the shopping malls of Alexa and Schloβtraβe are popular for tourists.

1

2

3

MUNICH

FRANKFURT

BERLIN





Berlin

Dresden

Frankfurt

Munich

Hanover

Stuttgart

Week

33

Week

34

Week

35

Week

38



€ 377 Average transaction value


COUNTRY Analysis

Portugal

€61.35


26

Top 5 Nationalities by transactions


Angola 36.6% 32.7% €372

Brazil 26.6% 4.6% €322

China 7.1% 89.2% €1,102

Russia 6.0% 44.9% €366

Mozambique 2.6% 33.8% €301

Total 79.0%

Market Share

Sales

Growth in

Sales

Average

Transaction

ValueNationalities

BRAZIL

ANGOLA

CHINA


4%

3%

2%

9%

8%

7%

6%

14%

13%

12%

11%

19%

18%

17%

16%

PO

RT

UG

AL

Angola and Brazil accounted for 63% of the total sales in 2013 in Portugal. The number of shopping transactions for tourists from Angola increased by over 30% and Brazilians registered a growth of 9% on transactions. Portugal is a very important hub, especially for tourists from northern Brazil, not only due to the language and cultural links but also as Portugal is the first port of call for tourists entering Europe on the Schengen visa, thanks to direct flights to Lisbon with the airline TAP. Tourists from China are now the third biggest spenders in Portugal with growth of 89% on sales compared to 2012, followed by tourists from Russia who increased spend by 45%. In 2012, 143,000 Russians visited Portugal, 40% more than in 2011. As a result, a Portuguese visa centre was opened in Moscow in 2013, to encourage and facilitate tourism and business links between the two countries.

Angola 31.7% 32.8%

Brazil 31.1% 8.9%

Russia 6.2% 38.1%

Mozambique 3.3% 28.5%

China 2.4% 65.5%

Total 80.1%

Market Share

Sales

Growth in

SalesNationalities

PortugalTop 3 cities

for tax free sales

LISBON

PORTO

ALCOCHETE

1

2

3

ANGOLA

BRAZIL Traveller profile p.39


Activity tracker by % of annual volumeNote: 16% of the total annual transactions from Angolans were processed

in July.




COUNTRY Analysis

Czech RepublicAngola 36.6% 32.7% €372

Brazil 26.6% 4.6% €322

China 7.1% 89.2% €1,102

Russia 6.0% 44.9% €366

Mozambique 2.6% 33.8% €301

Total 79.0%

Market Share

Sales

Growth in

Sales

Average

Transaction

Value

BRAZIL

ANGOLA

Market Share

Sales

Growth in

Sales

LISBON

PORTO

ALCOCHETE

CZK 12,720Average transaction value


CZK2,001


28



Russia 54.1% 41.8% CZK13,563

China 7.3% 5.7% CZK13,463

Taiwan 6.2% 0.2% CZK6,007

Azerbajian 4.6% 32.8% CZK58,139

Ukraine 3.7% 26.2 % CZK15,845

Total 75.9%

Market Share

Sales

Growth in

Sales

Average

Transaction

ValueNationalities

CHINA

RUSSIA

TAIWAN

19%

18%

17%

16%

CZ

EC

H R

EP

UB

LIC

Around 750,000 Russian tourists visited the Czech Republic in 2013, up 8% year on year. Russians are the second largest group of tourists visiting the Czech Republic, after Germans. According to local newspaper Prague Post, Russian tourists are interested in historical and cultural monuments, cultural events, quality tourist services, shopping and Czech spas. Most Russian tourists that visited the Czech Republic are aged between 15 and 40 years old and looking for access to entertainment and shopping. More mature tourists will visit Czech spas and historical and cultural monuments.Tourists from Russia accounted for more than half of all tax free sales in Czech Republic, a growth of 48% on the number of transactions compared to 2012. Tourists from Ukraine also registered a positive growth of 49% on the number of transactions from 2012. Chinese represents 7,3% of the total sales, with growth of 15% on the number of transactions. They should be more numerous in 2014 as repeat travellers from China are looking for new destinations to visit in Europe.

PRAGUE

KARLOVY VARY

Russia 50.8% 47.8%

Taiwan 13.0% 5.2%

China 6.9% 15.0%

Ukraine 3.0% 48.9%


Total 76.5%

Market Share

Sales

Growth in

SalesNationalities

Czech Republic

Top 2 cities

for tax free sales2

3

RUSSIATraveller profile p.37


TAIWAN

Activity tracker by % of annual volumeNote: 12% of the total annual transactions from Russians were processed in May.



4%

3%

2%

9%

8%

7%

6%

14%

13%

12%

11%



Russia 54.1% 41.8% CZK13,563

China 7.3% 5.7% CZK13,463

Taiwan 6.2% 0.2% CZK6,007

Azerbajian 4.6% 32.8% CZK58,139

Ukraine 3.7% 26.2 % CZK15,845

Total 75.9%

Market Share

Sales

Growth in

Sales

Average

Transaction

Value

CHINA

RUSSIA

Market Share

Sales

Growth in

Sales

COUNTRY Analysis

Greece

Average transaction value


€ 120

€ 597


30



Russia 38.0% 51.0% €623

China 13.1% 78.0% €927

Fyro.Macedonia 7.3% 16.9% €261

Ukraine 5.9% 201.3% €1,089

United States 4.6% 12.2% €1,317

Total 69.0%

Market Share

Sales

Growth in

Sales

Average

Transaction

ValueNationalities

RUSSIA

CHINA

FYRO.MACEDONIA

MAY JUN JUL AUG SEP OCT NOV

4%

3%

2%

9%

8%

7%

6%

14%

13%

12%

11%

19%

18%

17%

16%

GR

EE

CE

Tourists from Russia accounted for 38% of all international shopping sales in Greece. While Turkey is still the first destination for Russian tourists, followed by Egypt, Greece had the highest overall growth in number of Russian tourists between 2011 and 2012 (+69%), and are the third preferred country destination. Russia’s neighbouring countries have also been travelling more to Greece. Ukrainians accounted for 6% of total tax free sales with an increase of almost 200% on sales from 2012. Chinese tourists were the second biggest spenders with growth of 78% from 2012, accounting for 13% of total tax free sales. At the historic sites of Greece, Chinese tourists are arriving in growing numbers - a welcome boost for Greece’s biggest industry. In 2012, 100,000 Chinese visited Greece and 21,000 of these tourists flew straight from China to Greece, a 25% rise on 2011. Chinese are also travelling more for business in Greece; they are the current managers of the Greek port of Piraeus and they are also interested in expanding its presence in other Greek ports.

Russia 36.4% 114.3%

Fyro.Macedonia 16.8% 22.8%

China 8.5% 88.9%

Serbia 8.0% 34.7%

Ukraine 3.3% 117.5%

Total 72.9%

Market Share

Sales

Growth in

SalesNationalities

GreeceTop 3 cities

for tax free sales

CHINATraveller profile p.33


FYRO.MACEDONIA


Note: 23% of the total annual transactions from

Russians were processed in August.


ATHENS

THESSALONIKI

RHODES

1

2

3

JAN FEB MAR APR DEC



Russia 38.0% 51.0% €623

China 13.1% 78.0% €927

Fyro.Macedonia 7.3% 16.9% €261

Ukraine 5.9% 201.3% €1,089

United States 4.6% 12.2% €1,317

Total 69.0%

Market Share

Sales

Growth in

Sales

Average

Transaction

Value

RUSSIA

CHINA

FYRO.MACEDONIA

Market Share

Sales

Growth in

Sales

ATHENS

THESSALONIKI

RHODES

COUNTRY Analysis

Singapore

$ 634 Average transaction value


$100


32



China 20.4% 16.4% $801

Indonesia 15.8% -11.0% $537

India 12.6% 20.4% $1,186

Malaysia 3.9% 11.1% $894

Australia 2.9% -39.8% $446

Total 55.6%

Market Share

Sales

Growth in

Sales

Average

Transaction

ValueNationalities

INDIA

CHINA

INDONESIA


4%

3%

2%

9%

8%

7%

6%

14%

13%

12%

11%

19%

18%

17%

16%

SIN

GA

PO

RE

International arrivals in Singapore for the first 11 months of 2013 grew 7.2% to 14 million from the previous year based on preliminary figures, according to Singapore’s Tourism Board. Around 76% (11 million) of visitors in 2012 were Asians compared to 73% (6.5 million) during 2005. China, Indonesia, Malaysia, Australia and India are the top 5 markets. Tourists from China, Indonesia and India accounted for almost 50% of total tax free sales in 2013. The proximity, cleanliness, luxury shopping centres, natural scenery and beaches are some of the reasons why these visitors travel to Singapore. The number of tourists visiting Singapore should continue to rise in 2014, thanks to a fast growing middle class from neighbouring emerging economies eager to acquire luxury products that were not affordable some years ago. The city also includes other highlights such as the Formula One racing and Universal Studios Singapore. Additionally, the meetings, incentives, conventions and exhibitions industry is also important as Singapore has been denominated for the 11th consecutive year as “Asia’s Top Convention City.

Indonesia 18.6% -7.3%

China 16.1% 23.0%

India 6.7% 14.6%

Thailand 5.0% 5.6%

Australia 4.1% -30.8%

Total 50.5%

Market Share

Sales

Growth in

SalesNationalities

Singapore

CHINATraveller profile p.33

INDIA

INDONESIA

Activity tracker by % of annual volumeNote: 12% of the total annual transactions from Chinese were processed

in February.




More tourists in UK are expected due to revised visa application process.

Rise in the number of individual travellers after the New Chinese Law on Tourism.

TRAVELLER Profile

ChinaChina 20.4% 16.4% $801

Indonesia 15.8% -11.0% $537

India 12.6% 20.4% $1,186

Malaysia 3.9% 11.1% $894

Australia 2.9% -39.8% $446

Total 55.6%

Market Share

Sales

Growth in

Sales

Average

Transaction

Value

INDIA

CHINA

Market Share

Sales

Growth in

Sales


34

TRAVELLER PROFILE

ChinaLuxury consumers in

China are mostly under

the age of 40. Chinese

consumers between

the ages of 20 and 30

(one child policy gene-

ration) are becoming

a significant segment

for luxury consump-

tion. Accounting for

approximately 300

million people, these

young consumers are

not only unique as a

collective group, but

they also are highly

individualistic.

Age Purpose of visit

Expanding classes

Leisure departures accounts for around 69% of total outbound trips,

25% of which are group leisure departures. Chinese individuals typi-

cally travel in groups of 3 to 10 people (68%).

Business departures increased by 13% in 2012 due to the expansion

of Chinese companies abroad.

The continuing expansion of the Chinese middle class has resulted in

increasing levels of disposable income among the population and a

rise in the desire to travel abroad.

On average, wealthy Chinese take three international trips a year,

with 33% of billionaires taking more than five annual international

trips (Euromonitor).

Chinese people are very passionate about brands and are enthusiastic shoppers. They want to be served

efficiently and appreciate suggestions in order to find the best gifts for their family and friends. They love

exclusive goods and can be sceptical of free promotions.

They travel to Europe especially during summer (July is the busiest month) and also during the official

Chinese holidays of New Year in the beginning of the year and National Day in October.

General profile

CH

INA

1 FRANCE Country analysis p.9

GERMANY Country analysis p.21

AUSTRIA

ITALY Country analysis p.13

UNITED KINGDOM Country analysis p.5

High education levels,

Predominantly male,

Prioritises convenience, therefore, they

like shopping in department stores,

shopping streets and at the airport,

Pragmatic pay more attention to the

practicality of products and services,

Focus on timeliness, comfort and health.

The Business Traveller

Top 5 destination in Europe

LEISURE ACTIVITIES

2

3

4

5

Shopping . Culture . Gastronomy . Business potential . Historical visits . Unique experiences . Theme parks . Sightseeing

The Connoisseur The Package group Traveller

Young trend setters,

Predominantly female and individualistic,

Love luxury brands and spend a great

amount of time on shopping,

Seek out shopping experiences and

exclusivity (different products to those

found in China),

Women play an important role in their

partner’s purchase decision when it

comes to luxury shopping.

Less experienced tourists,

Predominantly female and family

oriented,

Search for convenience and safety,

Value for money - they tend to shop

at department stores and outlets,

Limited time and knowledge to plan

the trip themselves thus they visit shops

close to main tourist attractions.



TRAVELLER Profile

MiddleEast

UK to abolish visa for Saudi Arabians and tourists from Qatar.

Before and after Ramadan are preferred times to visit Europe.


36

TRAVELLER PROFILE

International leisure

travellers from the

Middle East are more

male than female,

around 50% are

between 18-34 years

age group. More than

50% are married, with

children in the house-

hold.


Expanding classes

Leisure departures accounted for 90% of total outbound trips taken

in Saudi Arabia in 2012, 63% of which were family departures.

They enjoy travelling abroad specially for the variety of entertain-

ment options.

Most of international leisure travellers from the Middle East to Eu-

rope are well educated and belong to the upper socio-economic

strata of society. Some individuals travel abroad several times a

year. They like to travel further and longer of at least two weeks. The

Middle-East is characterized by a high proportion of expatriate resi-

dents that also undertake international holidays. The Gulf countries

are characterized by a high proportion of expatriate residents that

also undertake international holidays (UNWTO).

42% of tourists spend their holidays in the Middle East and 58% outside the region. Most of them try to

escape the hot summer months, and travel between June and August when the temperatures in the Gulf

States are at the highest. The periods before and after Ramadan are also very popular with Middle Eastern

tourists in Europe. Wealthy and royal individuals and families from the Middle East are seeking an authentic

and legitimate experience in Europe. Service, authenticity and exclusivity are very important factors. They

enjoy a bargain and regularly ask for a discount because it is normal for them. They also prefer to choose

the person who they will deal with and ask for assistance regarding extra services and advice.

Travellers from Middle East are most reliant on traditional sources when planning and booking. The opinion

of friends and relatives has a particularly high sway on the destination choices.

General profile

MID

DL

E E

AS

T

1 UNITED KINGDOM Country analysis p.5


FRANCE Country analysis p.9

TURKEY

SWITZERLAND

Most of them are expatriate,

Middle and upper-class,

Male and family oriented,

Book their trip during on the months

before and after Ramadan and the New

Year period,

They have time for shopping and will

search for a staff.

The Leisure Traveller


LEISURE ACTIVITIES

2

3

4

5

Shopping . A family day out . Social competition . Shopping experiences . Weather . Business

The Business Traveller The Visiting Traveller

Travel for business and conference

purposes,

Male,

Search for courtesy and hospitality,

Travel throughout the year therefore

there is no seasonal trend,

Average spend is relatively high.

Visiting friends and relatives,

Male and family oriented,

Travel at least once a year, sometimes

more often,

Like a sales person who respects their

customs and who knows their hierarchy

and etiquette,

Admire generosity and manners.

Middle East



TRAVELLER Profile

Russia

Importance of luxury brands is linked to social status.

Main holidays are during May (Victory day), summer months of July, August and January.


38

TRAVELLER PROFILE

RussiaThe age of a wealthy

individual in Russia will

gradually decrease,

creating significant

potential in the market

for luxury goods closely

connected with the ha-

bits of young people.


Expanding classes

Leisure departures account for around 75% of outbound trips and busi-

ness 25%, although some business travellers will report that they are tra-

velling for leisure purposes in order to simplify visa and other processes.

More than 40% of outbound international travellers are from Moscow.

The middle class accounts for 25% of the population. There is an in-

crease in young Russian millionaires in their twenties or thirties. They wish

to take care of their image by demonstrating their wealth through visible

luxury branded goods. The belief that possession of super-premium

brands can assure better position in society is strong in Russia.

Russians wish to take care of their image by demonstrating their wealth through visible luxury branded

goods. Russians traditionally love glitz and glamour. They cherish fashion and luxury goods, especially

writing instruments, watches and jewellery which remain at the epicentre of the wealthiest class.

They are very proud, sensitive and spontaneous shoppers who tend to ‘think big’. Russian visitors are

prepared to pay for a wide range of services but expect high standards in return. They are direct and like

to be treated with respect.

It is becoming common practice for Russian men to invest more in their own looks by choosing goods

which were not common heretofore for a male consumer in Russia. Similarly, the increasing number of

business women in Russia is generating demand for traditionally luxury items.

General profile

RU

SS

IA

1 FINLAND

ESTONIA



SPAIN Country analysis p.17

Working for foreign companies (banks,

energy sector, government),

Predominantly male and older,

Status is very important,

Interested in cheaper branded goods

and classical brands,

They are very concerned about

appearance as they believe this is a

reflection of their success.

The Business Traveller


LEISURE ACTIVITIES

2

3

4

5

Shopping . Luxury . Weather . Gastronomy . Traditionalism . Study . Business . Well known attractions

The Luxury Traveller The Young Upper Traveller

Higher education,

Rich and ultra-rich middle aged,

Predominantly couple and male

oriented,

More interested in power than money,

they search for conspicuous, exclusivity,

customisation and luxury services,

Have no need to acquire goods for status,

They are interested in the link between

culture and history in their purchases.

Young cosmopolitan employed by

multinationals or big Russian groups,

Speak fluent English,

Travels frequently,

Predominantly individual and couples

with children, travel in small groups,

Searches for authentic brands. They are

extremely brand and status conscious,

They are interested in concept stores,

designers and they praise technology.



TRAVELLER Profile

Brazil

The World Cup could negatively affect the number of Brazilian tourists in Europe this year.

Devaluation of Brazilian Real had a negative impact on the number of outbound Brazilian tourists.


40

TRAVELLER PROFILE

BrazilMainly travel indivi-

dually or as a couple

(partner, friend, fa-

mily member). Family

groups are rare but

they travel sometimes

with children under the

age of eighteen.


Expanding classes

Leisure departures accounted for 70% of outbound trips in Brazil in

2012, 42% of leisure trips were by singles.

Brazil’s middle class is growing significantly, providing individuals

with increased means for expenditure and the ability to travel over-

seas. The upper class travel frequently to Europe and United States

for shopping. Due to the high import rates, the luxury products are

much more expensive in Brazil compared to Europe.

Brazilians shop a lot but it’s changing. They are still shopping in the United States because of proximity,

cheaper prices and exchange rate but there is a decrease in shopping in Europe. According to ITB, out-

bound visitors who travelled first in 2008 and 2009 are experimenting with new or different destinations

such as Dubai and Turkey.

They want an authentic tourism experience and affordable travel. They want to choose their travel destina-

tions because of the country currency rates.

They travel in distinctive groups. They sometimes join friends or family members for a few days during their

travels but they mainly travel in couples. This implies that they dislike travelling in organised groups.

They search for relationships and loyalty. Showing enthusiasm will have a positive impact. They treasure

social conversation before getting to the point of business.

Brazilians constantly seek the opinion of peers and word of mouth plays an important role in the early stages

of their shopping experience.

General profile

BR

AZ

IL



PORTUGAL Country analysis p.25



X/Y generations,

Interested by middle range brands

(Masstige, Premium),

Looking for innovations and trends, they

want a full social life, deeply felt and full

of emotion,

Prioritise pleasure of traveling therefore

they like shopping in department stores,

Curious, providing advice on products is

very much appreciated.

The Young Middle Traveller


LEISURE ACTIVITIES

2

3

4

5

Shopping . Culture . Gastronomy . Study . Historical sites . Fashion trends . Wine

The Trend Traveller The Luxury Repeater Traveller

Predominantly couples and friends

travelling without children,

Interested by countries where they have

their roots and cultural heritage,

Trendsetters, high-end brands oriented,

Focus on urban tourism,

Preoccupied with fashion as well as by

world of glittering social activity,

Appreciate personalized attention and

top-of-the-range facilities and service.

High education levels,

Predominantly female,

Travel frequently to Europe for the

European way of life and for shopping,

Looking for originality and creativity, they

love to be surprised and can be finicky,

Appreciate taking time to decide and

enjoy strolling through streets and stores,

They will shop in luxury stores and buy

top end products, specially shoes and bags.



TRAVELLER Profile

United States

Middle aged travellers close to retirement are an important segment.

Preferred time to visit Europe is from June to September.


42

American tourists to Eu-

rope tend to be middle-

aged or older, wealthier

and better educated.

American baby boo-

mers are coming in to

retirement age and will

have more time to travel,

particularly to long-haul

destinations.


Expanding classes

Leisure departures accounted for 82% of outbound trips in the USA in

2012, which was distributed relatively equally between singles (32%),

couples (29%) and families (25%).

Business trips decreased by 13% during the five year period of 2007-

2012 due to the impact of the recession of US businesses. According

to UNWOTO, Most of the American tourists to Europe visit only one

country per trip (70%).

Middle aged travellers with no children at home and strong purcha-

sing power will travel to Europe most often.

American tourists like to be in places where traditional local products are showcased. They are interested in

discovering and learning about history. They travel mostly from May to September.

They are casual; they communicate their requirements easily and appreciate recommendations.

They are open, adventurous and passionate. They seek out a friendly and personalised service.

General profile

UN

ITE

D S

TA

TE

S

1 UNITED KINGDOMCountry analysis p.5

FRANCECountry analysis p.9




High social status and revenues,

Appreciate comfort,

Travel to learn and to discover something new,

Cherish experiences that allow them to

live like ‘local’ person,

Formerly interested in fashion trends,

they are more interested in authenticity

and loyalty,

They love concept stores and unique

shopping area.

The Single Traveller


LEISURE ACTIVITIES

2

3

4

5

Shopping . Culture . Gastronomy . Business . Historical sites . Study . Visit friends and relatives . Pilgrimages / Religion . Health treatment .

The Y Traveller The Family Traveller

High end, experienced and fashionable

travellers,

Comprised of singles and couples,

Predominantly female,

Love innovative and young exclusive

brands,

They appreciate European luxury

expertise and well-known street areas,

Search for customised products,

exclusivity and fashion trends.

Middle class traveller with a very high

purchasing power,

Travels with family, often with children,

City dwelling,

Search authentic and culturally

distinctive experiences,

Seek a sales person who respects their

habits and understands the importance of

hierarchy and ‘moral values’,

They are focused on short term

purchases.

TRAVELLER PROFILE

United States



TRAVELLER Profile

Japan

The average duration of outbound trips is 4-7 days.

Rise in retired travellers that are less inclined to buy luxury goods.


44

TRAVELLER PROFILE

JapanSeniors, particularly baby

boomers, have been tra-

velling abroad as they

are reaching retirement

age and have increased

time for travel notably to

locations which are fur-

ther away.


Expanding classes

Leisure departures accounted for 82% of outbound trips in Japan in

2012, 34% of these trips were taken as part of a group.

By taking advantage of the strong Japanese yen, there is a growing

number of young people travelling overseas. With plenty of time to

travel, young people were eager to learn something new about dif-

ferent cultures and lifestyles while traveling abroad.

Sophisticated Japanese tourists are obsessive about presentation, cleanliness and finesse of details.

They acknowledge when sales people pay attention to their questions and take time to inform them. They

love personal services.

Japanese enjoy returning to their favourite places. They are polite and formal. They want their experience

in Europe to be ‘special’, particularly women who have a low status in Japan.

Japanese believe that turning down someone’s request can cause embarrassment and loss of face to the

other person which explains why most Japanese people maintain an impassive expression when speaking.

Saving face in society is extremely important and is a mark of personal dignity.

General profile

JA

PA

N

1 ITALY Country analysis p.13





Middle aged,

Want to experience local cultures and

explore the world,

Interested in history and brand expertise,

They love brands with a strong cultural

heritage,

Personal space is very important to

respect,

Appreciate when a sales person knows

some phrases in Japanese.

The Culture Traveller


LEISURE ACTIVITIES

2

3

4

5

Shopping . Culture . Gastronomy . Historical visits . Museums visits . Experiences . Sightseeing

The Y Traveller The Senior Traveller

Privileged class,

Travel with friends to improve their

knowledge,

Attracted to the freedom associated with

European countries,

Mainly students from well-known

universities or employees in prestigious

companies,

They love purchasing in high-end stores,

They like well-known brands and gifts.

High class

Strongly influenced by European and

American lifestyle and culture

Older Japanese people do not like

contact with strangers, particularly

physical contact.

Want a sales person who understands

their demands and provides the best

service.

Appreciate quality gifts (not necessarily

expensive gifts)



TRAVELLER Profile

Australia

Increase in the number of high-net-worth individual (HNWI).

Australians took advantage of their strong dollar to shop in Europe, especially in the UK.


46

TRAVELLER PROFILE

Australia

AU

ST

RA

LIA

Middle-aged travellers

whose children are no

longer living at home,

taking full advantage of

their increased discre-

tionary expenditure and

travelling abroad.


Expanding classes

Leisure departures accounted for 87% of outbound visits in Australia

in 2012, 26% of this category were singles whereas 24% were com-

prised of couples.

The upper class is expected to continue to rise in Australia. In 2012,

this category represented 1.8 million people and is expected to in-

crease to 2 million by the end of the decade. The growth in the

number of professionals and individuals in well-paid employment will

increase the desire for luxury goods and international travel.

Australian men are concerned about their appearance. Apparel at

home and in the workplace are essential staples in the young affluent

wardrobe.





GREECE Country analysis p.29


LEISURE ACTIVITIES

2

3

4

5

Shopping . Culture . History . Heritage . Visiting friends and relatives . Sport . Beverages

General Profile

The number of Aus-tralians in the high-net-worth individual

(HNWI) category is cur-rently increasing at a higher rate than any other country internationally.

These individuals are usually defined as having investable finance in excess of one million US dollars. The increase in this HNWI

is also due to the increa-sing number of females in the workforce. These women are characterised as being well-educated and increasingly astute in their consumption of luxury goods.

The Australian population is comprised of individuals from a variety of back-grounds and heritages, therefore, the country’s citizens are interested in travelling abroad to see family, friends and to em-brace their heritage. This

is evident from the large number of Australians who visit Europe.

This demand is also illustra-ted by large airline carriers such as Ethiad and Emi-rates and their tailored air routes such as a one-stop service operating between Australia and Ireland.Cultural heritage and in-formation on European civilizations is sought out by Australian tourists.

Quality products and ser-vice delivery are perceived

as being very important but price plays a stronger role decision making. However, Australian customers are not solely focused on price as they also expect good customer service during and after their purchases.

Centrally located stores and in-store merchandising are effective tools in encou-raging Australian tourists to shop.



TRAVELLER Profile

Norway

Increasing demand for luxury services such as spa facilities.

Singles and couples without children are the biggest travel segment.


48

There are three impor-

tant segments: (a) fami-

lies with children, typi-

cally travel during school

holidays so they can be

together and have new

experiences; (b) singles

who travel alone or with

other singles (c) Empty

Nesters who are adult

couples, aged 45+ with

no children.


Expanding classes

Leisure departures accounted for 70% of outbound trips in Norway in

2012, 42% of leisure trips were by singles.

Aberdeen, Edinburgh and Glasgow welcome thousands of Norwe-

gian engineers each day working in the partner oil companies of

both countries.

Singles culture is growing and a large proportion of singles have no

children. Thus the singles’ holiday industry is expected to continue

to grow.



PORTUGAL Country analysis p.25




LEISURE ACTIVITIES

2

3

4

5

Shopping advantages . Culture . Relaxation . Business potential . Sport

General Profile

Norwegians enjoy tra-velling to countries with warmer climates

and developed services for travellers in search of the sun. This is particularly evident in the summer season as the ave-rage temperatures in Norway are lower than their European counterparts in more southern parts of the continent.

The strength of the Norwegian

krone is also an influencing factor as it provides Norwe-gians with increased spending power and makes travelling abroad a favourable deci-sion. There is also an increase in demand for luxury services including exclusive accommo-dation and spa facilities.

Competition among low-cost airlines has lowered the cost of travel for Norwegians. 70% of all outbound tips in 2012 were made by air. In 2012, Norwe-gians travelled abroad an ave-rage of twice a year. However it is important to note the many

citizens living on the border of Sweden make several trips a year and in 2012 trips to Swe-den accounted for 36% of all outbound trips. Neighbouring countries Sweden, Denmark and Finland offer lower prices than those found in Norway.

These tourists are looking for luxury, unique experiences and culture when travelling. Package tours and city breaks are especially popular. They are becoming more and more demanding and will increa-singly look for unique travel experiences. Norwegians are

wealthy and purchasing power is very high. They are very pa-triotic and often choose local products. However, they love European luxury expertise and they are receptive of informa-tion about EU goods and the advantages of shopping there.

Environmental issues are im-portant for Norwegian consu-mers. These consumers are especially interested in new products and are willing to pay for quality. Norwegians are not price sensitive and are wil-ling to spend more, especially when buying durable goods.

TRAVELLER PROFILE

Norway

NO

RW

AY



TRAVELLER Profile

Thailand

Affluent families travel to Europe at least once a year.

Preferred time to shop in Europe is April during the holidays of Songkran festival.


50

Thai tourists are middle-

aged. Statistics indica-

ted that 50.7% were

female and 49.3% were

male. The majority of

outbound tourists were

between 20-49 years

of age and half of them

were married.


Expanding classes

Affluent families travel internationally at least once a year and plan

their trips in order to coincide with either leave from work or scho-

ol’s summer vacation. The most popular time for travelling abroad

is during April due to three days off for Songkarn Festival (Thai New

Year). Leisure departures accounted for 55% of outbound trips in

Thailand in 2012. Single business departure travellers seem to be on

a management level heading for annual meetings in head offices of

international companies.

The largest demographic group of tourists was product and service

workers, sales, government officials (30.2%) and about 26.0% were

business owners and business employees. 47.0% of the respondents

held bachelor degrees and 26.5% were doctorate awarded. Most

of the Thai outbound tourists claimed to be from Bangkok (45.3%).





SWITZERLAND


LEISURE ACTIVITIES

2

3

4

5

Shopping . Culture . Relaxation . Architectural sites . Theme parks .Business conferences and exhibitions

General Profile

Thais love to travel either domestically or abroad, but in particular in Euro-

pean countries where they are very aware of and influenced by the desire to experience Euro-pean lifestyles and landscapes, to enrich themselves intellec-tually, increase their knowledge and desire to try something new. The most influential motivating factor is therefore the desire to discover new places but also

to pay particular attention to security when travelling abroad. Interested by a favourable ex-change rates, also play a signi-ficant part in making European countries attractive.

The majority are most concer-ned with the high cost associa-ted with travelling and poten-tial language problems. Almost 85% of Thai travellers preferred to stay in 3/4 star accommoda-tion and planned to stay 1 to 3 weeks. The Thai culture is one of a very close family, so they feel more comfortable travel-ling within a group of families

together; couples are growing in popularity as in travelling with someone of the same sex. It’s very unusual to see mixed sexes travelling together due to the Thai culture. The majority of Thai are followers of Thera Vada Buddhism.

Most fashion buyers are heavily influenced by Korean culture meanwhile they are no parti-cular fashion rules in Thailand regarding what to wear. Thai people choose their own styles and are influenced by interna-tional fashion magazines. Thai female love jewellery, especially

gold and diamonds. Although wearing a ring is not a Thai tra-dition, many couples spend lot of money on a diamond rings. They really appreciated luxury shopping malls for the reason that shopping is really conside-red as a leisure activity.

Brand names for products such as clothes, bags and acces-sories tend to be the most im-portant factor for middle aged women who work in more pro-fessional jobs, as their image is important to their daily lives. They prefer buying clothes from the original countries.

TRAVELLER PROFILE

Thailand

TH

AIL

AN

D



TRAVELLER Profile

South Korea

Over 65 years old and retired are becoming a strong group.

Young and savy single travellers are the most important segment.


52

There are two important

segments: (a) young

single travellers, looking

to explore the world –

experiencing unique

places and expanding

their knowledge; (b)

middle aged couples

with children at home

– travelling to explore a

different lifestyle for their

family.


Expanding classes

Leisure departures are stronger than business departures. Outbound

travel is becoming common is South Korea as the country has a posi-

tive economic index.

Group departures showed a downward trend in the last years, which

can partially be attributed to increased access to travel information

available through internet.

The most important population shift occurring is a large increase in

the number of those over 65 years, the senior travellers. Long-run

projections suggest that South Korea could have one of the oldest

populations of any country in the world by 2050. Luxury travel is

growing in the South Korean market, especially in the older age

demographic.

1 GERMANY Country analysis p.21



SWITZERLAND



LEISURE ACTIVITIES

2

3

4

5

Shopping . Culture . Gastronomy . Art . Historical sites . cultural heritage . inoovations . health . Business

General Profile

Visiting Europe is a must see educa-tional experience,

focusing on history and culture. Experience of Eu-ropean countries carries a great deal of personal sta-tus which is is very impor-tant to Koreans.

Resulting from this social interest, luxury goods were real status symbols for Ko-

reans, members of the up-per class seek to distinguish themselves from the lower classes by buying expen-sive, creative and innova-tive goods.

Koreans are also very sophisticated in terms of trends. They appreciate clear and convincing brand message and are very conscious of the quality.

Affluent South Korean consumers purchasing high-end brands and cele-brities certainly influence

South Korean fashion trends and there is a great interest in what the leading stars are wearing, particu-larly K-pop idols who main-ly wear the latest collections of the international fashion brands.

When they travel abroad, they particularly aspire to experience a safe, secure, relaxing clean and heal-thy environment. They also wish to explore beau-tiful landscapes, try local specialities, and aspire to practice a real European

lifestyle experience.

As a consequence, they tend to return at a later date and want to discover regional provinces. Resorts, spas, historical attractions and delicious food are the other reasons why most Korean travellers love Euro-pean destinations.

SO

UT

H K

OR

EA

TRAVELLER PROFILE

South Korea



International Holidays and Events Calendar 2014

South KoreaJANUARY

1 New Year’s Day ALL

7 Orthodox Christmas Day RUS

7 Coptic Christmas Day EGY

13 Coming of Age Day JAP

13 Milad un Nabi (Prophet Mohamed’s Birthday) KUW . UAE

14 Milad un Nabi (Prophet Mohamed’s Birthday)

EGY . SAU . MAL NIG . IND

14 Pongal IND

14 Makar Sankranti IND

20 Martin Luther King Day USA

25 Revolution Day EGY

26 Republic Day IND

26 Australia Day AUS

30.5 Spring Festival Golden Week Holiday CHN

31 Chinese New Year CHN

31.3 Chinese Lunar New Year’s Day Festival HK . THA . MAL

FEBRUARY

1 Federal Territory Day MAL

4 Vasant Panchami IND

11 National Foundati on Day JPN

14 Valentine’s Day UK . USA

17 President’s Day USA

23 Defender of the Fatherland Day RUS

25 Kuwait National Day KUW

26 Kuwait Liberation Day KUW

27 Maha Shivaratri IND

MARCH

1.5 Carnival BRA

4 Carnival/Shrove Tuesday BRA

8 International Women’s Day RUS . CHN . NIG

16 Holi IND

21 Spring Equinox JPN

31 Ugadi IND

APRIL

5 Qing Ming Jie CHN

5 Ching Ming Festival HK

6 Chakri Day THA

13 Mahavir Jayanti IND

13.15 Songkran Festival (Thai New Year) THA

17 Maundy Thursday NOR

18 Good FridayHK . USA . NIG . AUSUK . BRA . NOR . IND

19 Holy Saturday HK

20 Easter SundayUSA . NIG . AUS . UKBRA . NOR . IND

20 Coptic Easter EGY

21 Easter MondayHK . USA . NIG . AUSUK . BRA . NOR . IND

21 Sham El- Nessim (Spring Festival) EGY

APRIL

21 Tiradentes Day BRA

25 Sinai Liberation Day EGY

25 Anzac Day AUS

29 Shõwa Day JPN

MAY

1 Workers’ Day NIG

1 Spring and Labour Day RUS

1 Official Holiday NOR

1 Labour Day/ May DayCHN . BRA . HKMAL . EGY

3 Constitution Memorial Day JPN

4 Greenery Day JPN

5 Children’s Day JPN

5 Early May Bank Holiday UK

5 Coronation Day THA

6 Buddha’s Birthday HK

8 Day of Liberation NOR

9 Victory Day RUS

14 Buddha Purnima/ Vesak IND

17 Constitution Day NOR

26 Memorial Day USA

26 Spring Bank Holiday UK

27 Lailat Al Miraj (The Prophet’s Ascension) KUW . UAE

29 Ascension Day NOR

29 Democracy Day NIG

JUNE

2 Dragon Boat Festival CHN . HK

7 The Yang di-Pertuan Agong’s Birthday MAL

8 Whit Sunday NOR

9 Whit Monday NOR

12 Russia Day RUS

19 Corpus Christi BRA

28 Start of RamadanSAU . EGY . NIG . KUW UAE . QAT . IND

JULY

1 Hong Kong Special Administrative Region Establishment Day HK

4 Independence Day USA

21 Sea Day JPN

23 Revolution Day EGY

28.30 Eid- al- Fitr (End of Ramadan)SAU . EGY . NIG . KUW UAE . QAT . IND

29.30 Hari Raya Puasa Day MAL

AUGUST

12 The Queen’s Birthday THA

15 Independence Day IND

25 Summer Bank Holiday UK

29 Ganesh Chaturthi IND

31 National Day MAL

SEPTEMBER

1 Labour Day USA

7 Independence Day BRA

8 Mid-Autumn Festival CHN

9 Day After Mid-Autumn Festival HK

15 Respect for the Aged Day JPN

16 Malaysia Day MAL

23 Autumn Equinox JPN

23 National Day SAU

OCTOBER

1 National Day of the People’s Republic of China HK

1 National Day CHN

1 Independence Day NIG

2 Chung Yeung Festival HK

2.7 National Day Golden Week Holiday CHN

2 Mahatma Gandhi Birthday IND

3 The Day of Arafat EGY

3 Dussehra (Maha Navami) IND

4.6 Eid al- Adha (Feast of Sacrifice)EGY . KUW . UAE SAU . QAT . IND

5 Id el Kabir NIG

5 Hari Raya Haji MAL

6 Armed Forces Day EGY

12 Our Lady Aparecida BRA

13 Columbus Day USA

13 Sports Day JPN

23 Chulalongkorn Day THA

23 Diwali / Deepavali IND

25 Al Hijra/ Muharram (Islamic New Year)

EGY . KUW . UAE SAU . MAL . IND

NOVEMBER

2 All Souls Day BRA

3 Culture Day JPN

4 Unity Day RUS

6 Guru Nanak Birthday IND

11 Veterans Day USA

15 Republic Proclamation Day BRA

23 Labor Thanksgiving Day JPN

27 Thanksgiving Day USA

DECEMBER

2 National Day UAE

5 The King’s Birthday THA

10 Constitution Day THA

18 Independence / National Day QAT

23 Emperor’s Birthday JPN

25 Christmas Day ALL

26 Boxing Day ALL

31 New Year’s Eve ALL

C A L E N D A R


54

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