MarketScan Brazil The Hague, August 2015

Transcription

1 MarketScan Brazil 2015 The Hague, August 2015

2 NBTC Holland Marketing NBTC Holland Marketing (NBTC) NBTC is responsible for branding and marketing the Netherlands nationally and internationally. Using the 'Holland' brand, NBTC puts the country on the map as an attractive destination for holidays, business meetings and conventions. We carry out marketing activities in 13 markets, under the name of NBTC Netherlands Board of Tourism & Conventions. In cooperation with public and private partners, we attract visitors who spend money in Holland. We cultivate countries and regions that supply the most visitors to the Netherlands. Based on this philosophy, NBTC is active in Europe, North America, Asia and South America (Brazil). MarketScan Brazil 2015 Inside knowledge of the Brazilian travel market is essential in order to gain access to this market. The MarketScan Brazil 2015 offers relevant information about this country and its travel market to organisations in the travel industry and others. In this MarketScan, you will find a brief overview of the travel market as well as an insight into trends and developments. Contents MarketScan Brazil Brazil in a nutshell 3 Outbound travel market 5 Internet and travel 6 Incoming tourism to Holland 7 Holland as a vacation spot 12 Image of the Dutch people 13 Trends and developments 14 Destination Holland: SWOT 15 References 16 Contact 17 This MarketScan was put together by NBTC Research. 2

3 Brazil in a nutshell (1) Population Brazil has a total population of almost 205 million people (estimation July 2015), with the South-East region accounting for the highest number of habitants (42%) due to big cities Rio de Janeiro and Sao Paulo (7 th largest metropolitan area in the world). Together with the other regions North (8%), North-East (28%), South (14%) and Central-West (8%). ( The main language is Portuguese. 60% of the Brazilian people are aged 15-54, 24% are aged 0-14 and only 16% is aged as 54+. A diversity of cultures can be found in the country. (The World Factbook, 2014) 55% of the population are European ancestors (mostly Portugal, Italy, Germany and Eastern Europe). (ETC Market Insights: Brazil, 2009) 3

4 Brazil in a nutshell (2) The economic development of Brazil Since the mid 1990s, the economy of Brazil has improved. After record growth in 2007 and 2008, the GDP shows a decline in 2009 due to less export because of the global financial crisis. The economy recovered rapidly in 2010 but slowed down again in 2011 and 2012 because of global uncertainties and previous policy tightening. In 2013 high growth rates were predicted for the coming years, but these rates have been revised down. This is due to high inflation and low business investment partly reflecting low business confidence. All this resulted in a growth rate of 0.1% in 2014 and predictions of a negative rate for Economic growth is projected to rise over the medium term, if the structural reforms are being implemented successfully. Exchange rate Euro-BRL 1=3,49 Brazilian Real (BRL) ( June 2015) ( ( *forecast) * 2016* GDP growth The global event FIFA World Cup (2014) in Brazil forced the country to invest in infrastructure and tourism. Many Brazilians protested against the high spending of their government on the World Cup. With the current preparations for the Olympic Games (2016), continued development of the infrastructure is needed. ( Overall the unemployment rate decreased over the years 2002 until 2013, but from that moment it started rising again. In June 2015, unemployment rate was 6.9% compared to 4.8% a year earlier. The unemployment rate was highest Northeast and North Brazil and lowest in South Brazil in ( 4

5 Outbound travel market Outbound travel is increasing Brazilians continued to explore international destinations in Overall, a total of 9.1 million Brazilians travelled abroad in 2013, recording a 12% rise from the previous year. It is expected that the number of outbound trips reaches 14.9 million in Shopping is a key reason for travelling abroad (cheaper prices). (Euromonitor, August 2014) United States is popular After United States, most popular are the two South-American destinations Argentina and Uruguay. Also many European destinations are represented in the top 10 which is presented on the right. (Euromonitor, 2013) Few Brazilians travel abroad for sun and beach; they have plenty at home. (ETC Market Insights Brazil 2009) International tourism expenditure (US$ billion) 2014* * The development of Brazilians spending on outbound travel slowed down after some years of dynamic growth (+2% in 2014 compared to +13% in 2013). Still, Brazil takes in 10th place in the ranking of international tourism spending. (UNWTO, April 2015) * Preliminary results Most long haul travelers (outside of South America) come from São Paulo (42%) and Rio de Janeiro (15%). These long haul travelers mentioned visiting historical sites, experiencing an interesting culture, visiting friends and relatives, and trying different cuisines as motivating factors for visiting Europe. The most important motivator for visiting the US is shopping. (Global Tourism Watch 2012, The Canadian Tourism Commission) Outbound travelling expected to grow Brazilians spending on international outbound travel is expected to grow 13% in 2014 and 8% in 2015, reaching US $7.2 billion. Brazil takes the 8 th place in the global business travel ranking. Brazil might surpass South Korea and France over the next ten years, if they get the economy back on track. (Global Business Travel Association, April 2014) * (Euromonitor, 2013) 5

6 Internet and travel Use of mobile internet expected to grow According to budde.com the use of fixed and mobile broadband, mobile telephony, smart phones and mobile applications is expected to rise. Not only due to increasing spending power, but also because of the improved infrastructure due to the FIFA World Cup in 2014 and the upcoming Olympics in The number of mobile phone internet users in Brazil was in 2014 circa 63 million. It is expected that these numbers will respectively be 73 million and 56% in 2015, and 98 million and 82% in (emarketer, april 2015) Brazil top social media users of the world Brazilians are heavy social media users. They account for 10% of all the time that people spend on social media worldwide. This makes them the second country in the world when we look at the total time spent on social media. Facebook is the most popular social media platform and the number of fans is still increasing. (comscore, September 2014) Approximately 80% of Brazilians social media users indicate that they look for special offers via social media. Blogs, forums, and social networks have become important platforms for social media users in Brazil for sharing thoughts and opinions about travel destinations. (ETC & UNWTO, 2013) Internet and friends and relatives important source for inspiration The top three factors that influence consumers to make a purchase online are: information which they research online (57%), friend s opinions (42%) and opinions found on price comparison websites (41%). (emarketer, 2014) Travel sales have and will continue to play a major role in the country s e-commerce landscape. Roughly a quarter of travel sales are being transacted online. Consumers are holding back though, due to concerns about privacy and security. Mobile commerce in Brazil is still underdeveloped. Important reasons for not buying via mobile phones are takes too much time to open websites, cannot see detailed product/service information and cannot trust credit card security on mobile device. (emarketer, ) The internet usage is relatively high amongst young Brazilian <15 years 17% years 22% years 23% years 21% years 12% 55+ years 5% ( March 2015) 6

7 Incoming tourism to Holland (1) 139,000 Brazilian visits to Holland in 2014 The number of Brazilian visitors to Holland increased with 40% in 2010 and 20% in Just as the economy, the growth in number of Brazilian guests slowed down in 2012 and In ,000 Brazilians visited the Netherlands, which is an increase of 17% compared to (CBS, 2015 and analysis & forecast NBTC) Average stay of five nights The average stay of Brazilian in Holland is 5.0 nights. (NBTC Statistics Incoming Tourism, 2014) Main travel purpose is leisure Of all Brazilian visits to Holland, 73% has a holiday motive. Trips with a business motive account for one quarter of all trips. (NBTC Statistics Incoming Tourism, 2014) Development number of guests from Brazil (x 1,000) 350 Travel motive Business 25% Other 3% * (Source: CBS, 2015) * Change in research design guests nights Leisure 73% 7

8 Incoming tourism to Holland (2) Stay mainly in Amsterdam Almost 8 out of 10 Brazilian visitors stayed in Amsterdam in 2014 (109,000 Brazilian guests). The number of visitors in the other three big cities remained stable. 83% of the total number of Brazilian visitors stayed in the four big cities. (Source: CBS, 2015) Almost two out of three stay in three or four star hotels 99% of the Russian visitors stay in hotels during their stay in Holland. They stay mainly in three and four star hotels (57%). Number of hotel stars Brazilian visitors No star 25% 2% 6% 27% 31% 9% (Source: CBS, 2015) Brazilian guests by quarter 26% 18% Jan-Mar Apr-Jun Jul-Sept 27% 29% Oct-Dec (Source: CBS, 2015) 8

9 Incoming tourism to Holland (3) Flight capacity increases 2012 and 2013 showed a rapid increase of the flight capacity (both seats and departures). The growth in capacity slowed down in The number of seats was 221,149 in 2014 and increased with almost 4% compared to The number of departures was 617, which is an increase of almost 2%. The increasing capacity makes further growth of the number of Brazilian guests to Holland possible Seats x , , , , ,766 Please note: the figure above gives insight into the total capacity in terms of seats and flight departures, but not into the occupation. Departures , (Source: Capstats.com, 2015) KLM flights a week from Rio de Janeiro 7 KLM flights a week from Sao Paulo Amsterdam Airport Schiphol (Amsterdam Airport Schiphol, July 2015) Spending Brazilians in Holland (2014) Per person per day: 298 (Average all incoming visitors: 213) Per person per stay: 1,017 (Average all incoming visitors: 726) Total spending Brazilians: 141 million (Source: NBTC Statistics Incoming Tourism, 2014) 9

10 Incoming tourism to Holland (4) Most Brazilians make a city tour Of all Brazilian visitors to Holland, 73% walks through a town/city and for 16% is this the most important activity during their stay. 71% visits a museum and for 15% is this the most important activity. Other popular activities are walking (75%), visiting a bar or café (80%), walking (75%) or visiting the Red Light District (70). However, these activities are seldom the most important activities during the visit. (NBTC Statistics Incoming Tourism, 2014) Intention to visit Holland again maybe 4% probably 12% probably not 2% definitely 83% (NBTC Statistics Incoming Tourism, 2014) Top 5 undertaken activities of Brazilian in Holland 2014 Top 5 most important activity of Brazilian in Holland Visit a bar or café (80%) 1. Walk through a town/city (16%) 2 Walking (75%) 2. Visit museum (15%) 3. Walk through a town/city (73%) 3. Walking (14%) 4. Visit museum (71%) 4. Visit buildings or places of architectural interest (10%) 5. Visit the Red Light District (de Wallen) in Amsterdam (70%) 5. Visit notable places/places of interest (6%) Almost two thirds are city trips Of all visits by Brazilians to Holland with a leisure motive, 62% defines the type of holiday as a city trip, 14% as being a cultural holiday. Majority visitors has the intention to visit Holland again in the future Of all Brazilian visitors in the Netherlands, 83% said that they definitely have the intention to visit the country again in the future. Twelve percent stated to probably return for a visit. Four percent answered with maybe and only 2% said probably not. (NBTC Statistics Incoming Tourism, 2014) 10

11 Incoming tourism to Holland (5) Future perspective Destination Holland 2025 Following an earlier future perspective in 2008, NBTC Holland Marketing has published an updated outlook for the future for the destination Holland. Stakeholders from within and outside the industry have contributed even more to this update than to the previous edition, through round-table discussions, via the Internet and social media. The Future Perspective Destination Holland 2025, available as a digital magazine on (in Dutch), indicates the market perspective with respect to international visitors and their spend towards Over sixteen million international visitors in 2020, of which approx. 160,000 from Brazil With the exception of a few slumps, the number of inbound tourists to Holland continued to increase over the last decades. In 2012 over 12.2 million tourists from abroad visited our country for a holiday or for business. Inbound tourism will continue to grow in the coming years, with an expected average growth of 2.4% annually until After 2018 this growth will level off to an average annual growth of 1.5%. The growth percentages are higher for Brazil: 3.5% in the first period ( ) and 2.5% in the second period ( ). Resulting in 160,000 inbound visitors from Brazil in For more information on the future of this market, please check out the digital magazine on our website. (Source: NBTC, 2015) Development incoming tourism from Brazil Source: CBS, forecast UNWTO & Tourism Economics (analysis NBTC) 11

12 Holland as a vacation spot The Brazilian* consider Holland as an easy going country which offers good quality and as a country that has a lot to offer in terms of art and culture. offers a lot in terms of nature (reserves) high quality culinary range good price/quality ratio in hospitality lots of (window) shopping possibilities offers a lot to be active\sporty short breaks 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% hospitable country family-friendly expensive well accessible surprising destination More than half of the Brazilian* considers Holland as an expensive destination. Especially non-visitors are less aware of the fact that Holland has many things in close proximity. * Brazilian from Rio de Janeiro and Sao Paulo (Holland image study, 2012) Brazil visitors Brazil non-visitors mainly tulips, windmills and clogs easy going many things in close proximity offers a lot in terms of architecture and design offers a lot in terms of art and culture more to offer than A'dam variety, diversity good quality good service For more information on this image study, visit for the summary and infographic. 12

13 Image of the Dutch people Brazilian* people are very positive about the Dutch population. Brazilian* consider the Dutch open, tolerant, ingenious/inventive, helpful, hospitable/welcoming and enterprising. pragmatic/result-oriented sporty reliable 90% 80% 70% 60% enterprising innovative Relatively low scores were given by the Brazilian* for pragmatic/resultoriented, internationally-oriented and businesslike. 50% * Brazilian from Rio de Janeiro and Sao Paulo 40% (Holland image study, 2012) 30% internationally-oriented 20% open Brazil visitors 10% Brazil non-visitors 0% businesslike tolerant arrogant hospitable/welcoming helpful ingenious/inventive For more information on this image study, visit for the summary and infographic. friendly 13

14 Trends and developments The economy in Brazil is still growing, but not as fast as expected. On top of that, traveling to Europe has become more expensive due to the decline of the Brazilian Real. Despite these developments, the number of international departures are expected to increase. Accessibility and infrastructure in Brazil is expected to improved because of the 2016 Summer Olympics. The seat capacity from Brazil to Holland has increased rapidly in the period 2009 to 2013 (+78%). European destinations remain very popular amongst Brazilian long haul travelers. This is because the strong cultural links between the country and the European continent. Also Europe offers many cultural/historical attractions and shopping opportunities which are very appealing to the Brazilian travelers. Shopping is a strong motivational factor to travel abroad. Although more and more Brazilian from the middle class are able to travel, long haul travelers are still moreover well educated people from the higher social classes and from the big cities São Paulo or Rio de Janeiro. 14

15 Destination Holland: SWOT Strenghts High popularity of Amsterdam Interest in Dutch culture/folklore Compact: short distances between cities, short travelling time Holland is small, which makes it easy to combine with visits to one or more other European countries No visum required Direct flights from Sao Paulo and Rio de Janeiro Many restaurants, bars and cafes Brazilians have a positive image of Holland & the Dutch Weaknesses Preference for countries where many Brazilian or their ancestors come from (Portugal, Germany, Italy) Holland is less popular for a single destination tour; the average stay is short Quality of service in hotels, restaurants, bars and cafes Opportunities High popularity of European countries, because of history/origin Growing population that is financial able to travel Improving infrastructure in Brazil means better accessibility of the airports Growing use of (mobile) internet/social media Increased flight capacity Threats Expensive (accommodation, transport, guides) compared to other European destinations Limited 3/4 hotel capacity Huge competition between countries in Europe but also with short haul destinations/us High inflation Brazilian Real Lower economic growth rates than expected Upcoming Olympics can cause more Brazilian to stay at home/decide to spend a holiday in own country during the events 15

16 References Amsterdam Airport Schiphol, 2015 ( BBC.com, article Brazil economy in slowdown ahead of World Cup ( Budde.com, 2012 ( Capstats.com, 2015 ( Centraal Bureau voor de Statistiek, 2015 ( Central Intelligence Agency. The World Factbook Brazil ComScore, 2014 emarkter ( ETC Market Insights: Brazil, 2009 ETC & UNWTO, Understanding Brazilian Outbound Tourism - What the Brazilian Blogosphere is Saying About Europe Euromonitor, 2014 ( Global Business Travel Association, 2015 Global Tourism Watch, The Canadian Tourism Commission IMF, World Economic Outlook Database ( Instituto Brasileiro de Geografia e Estatítica ( Internet Live Stats ( NBTC Holland image study 2012 NBTC Statistics Incoming Tourism 2014 Statista ( UNWTO, 2015 Valuta.nl, 2015 ( 16

17 Contact Added value NBTC NBTC can offer your organisation tailor-made advice, for instance: - Local network: trade and press - Local market opportunities, cultural expertise - Advice on marketing, communication - Co-marketing opportunity Contact NBTC For further details on the Brazilian market and Holland-marketing activities in Brazil, please contact: NBTC Holland Marketing P.O. Box JL The Hague The Netherlands T:+31 (0) E: nbtc4you@holland.com Contact at NBTC Holland Marketing Headquarters Ms. Ditte Ooms T: +31 (0) E: dooms@holland.com 17