Italy - Siyaha
Transcription
Italy - Siyaha
Tourism Market Profile Italy Google Maps © 2010 This profile was developed by the USAID/Jordan Tourism Development Project in cooperation with Jordan Tourism Board Tourism Market Profile Italy Table of Contents OVERVIEW -------------------------------------------------------------------------------------- 3 COUNTRY BRIEF -------------------------------------------------------------------------Currency -------------------------------------------------------------------------------------Population -------------------------------------------------------------------------------------Ancestry & Migration -------------------------------------------------------------Language & Religion -------------------------------------------------------------Economic Trends -------------------------------------------------------------------------Consumer Confidence -------------------------------------------------------------- 4 4 4 4 5 5 6 TRAVEL TRENDS OF THE ITALIAN MARKET-------------------------------------Outbound Trips -------------------------------------------------------------------------International Travel Expenditure -------------------------------------------------Seasonality & Average Length of Stay -------------------------------------Italian Traveler Profile -------------------------------------------------------------- 7 7 10 11 13 ITALY TRAVEL TRENDS TO JORDAN-------------------------------------------------Tourism Arrivals in Jordan from Italy -------------------------------------Seasonality in Jordan -------------------------------------------------------------Purpose of Trip & Market Penetration -------------------------------------Nature of Trip -------------------------------------------------------------------------Accommodation -------------------------------------------------------------------------Spend in Jordan -------------------------------------------------------------Sites Visited in Jordan -------------------------------------------------------------- 14 14 14 15 16 17 18 18 ACCESS & TRANSPORT -------------------------------------------------------------Airports -------------------------------------------------------------------------------------Access -------------------------------------------------------------------------------------Airline Routes to Jordan -------------------------------------------------------------Cruise Services to Jordan -------------------------------------------------------------- 19 19 19 19 20 ITALY TRAVEL PLANNING & BOOKING -------------------------------------Travel Formalities -------------------------------------------------------------------------Travel Decisions & Bookings -------------------------------------------------Tour Operators & Travel Agencies-------------------------------------------------Online Travel -------------------------------------------------------------------------- 21 21 21 21 23 MEDIA -------------------------------------------------------------------------------------- 24 IMAGE & PERCEPTIONS OF JORDAN -------------------------------------Strengths & Weaknesses -------------------------------------------------------------Competition -------------------------------------------------------------------------- 26 26 26 PROSPECTS -------------------------------------------------------------------------- 27 -------------------------------------------------------------------------------------- 30 SOURCES 1 Tourism Market Profile Italy LIST OF ABBREVIATIONS LIST OF FIGURES & TABLES 2 -------------------------------------------------------------- 31 ----------------------------------------------------------- 32 Tourism Market Profile Italy OVERVIEW The Italian market is ranked as the world’s sixth largest market for outbound travel by UNWTO in terms of international travel spend, which amounted to US$27.8 billion in 2009. In actual trip volume, IPK International ranks Italy fifth in Europe (after Germany, the UK, France and the Netherlands), accounting for some 22 million trips in the same year. Italy’s poor economic performance and weak consumer confidence continue to stifle demand for outbound travel. Current economic forecasts indicate a very gradual improvement, although unemployment will likely continue to rise modestly. While the majority still spend their summer holidays in their home country, a growing number of Italians take long holidays (usually during the winter) and short breaks at other periods of the year outside Italy. There is a small, but growing number of Italians looking to travel beyond Europe and exploring destinations such as Morocco, Egypt and Turkey. Jordan could also benefit strongly from this trend. This new sense of adventure is not restricted to the young; experienced, middle-aged travelers are also looking for more exotic destinations. Research undertaken by various sources suggests that this segment is increasingly seeking a highly interactive travel experience, one in which travelers are active participants. Consequently, these travelers find experiences with a spiritual or escapist element attractive. Capturing 0.2% of the total Italian outbound market, arrivals to Jordan from Italy have been rising steadily. 3 Tourism Market Profile Italy COUNTRY BRIEF Currency In its early years as the common European currency, the Euro suffered a period of weakness against the US Dollar ($) and therefore against the Jordanian Dinar (JO). However, it rose steadily from an average of US$1=€1.12 in 2001 to US$1=€0.68 in 2008. € per US$ € per JD Avg. 2008 0.68 0.96 Avg. 2009 0.72 1.01 31 Dec 2009 0.70 0.98 1 Jul 2010 0.82 1.15 Table 1 - Euro (€) Exchange Rate 2008-2010 Source: International Monetary Fund (IMF); Economist Intelligence Unit (EIU) Since the financial crisis of September/October 2008, the Euro has been on a roller-coaster, falling sharply against the US Dollar in the last quarter of 2008, largely recovering by the end of 2009, and dropping again in the first half of 2010 in light of the Greek financial crisis. Population According to the UN Population Division, in 2010 the population of Italy is estimated at 60 million, with a 0.3% annual growth rate. The birth rate is low, but the population is being sustained by immigration. Italy also grapples with an aging population. By 2020, those over the age of 65 will increase dramatically. According to a study conducted by the bank BNP Paribas, of all industrialized nations, Italy will be the most affected by aging, with pension spending projected to reach 16% of GDP by 2030. The population can be broken down as follows: 0-24 years: 24.0% 25-59 years: 49.4% Over 60 years: 26.6% Table 2 - Age Distribution in Italy Source: UN Population Division Ancestry & The UN Population Division says that in 2009 there were 3.9 million Migration foreigners registered with the authorities in Italy (plus an unknown number of illegal immigrants). In the past, most came from Albania and North Africa. In recent years, many have come from Eastern Europe (including 0.8 million registered Romanians) and Asia. There are large numbers of people of Italian descent around the world. At least 10 million emigrated during the economic crises between 1870 4 Tourism Market Profile Italy and 1920. Many settled in Brazil, Argentina, the US, Canada and Australia. Smaller numbers went to other countries in Europe (including the UK, Germany, France, Malta, the Netherlands and Sweden), Latin America and elsewhere. Most of those who settled in Italian colonies in Africa were eventually expelled. Language & The national language is ‘Standard Italian’, but there are numerous Religion dialects and regional languages, many of them fading in importance. Franco-Provencal and French are spoken in the Valle d’Aosta, German in Bolzano-Bosen and Slovene in Trieste, Gorizia and parts of Venezia. Italy is strongly Catholic, although only one-third attend church. Other religions include: Figure 1 - Division of Religions in Italy Source: UN Population Division Economic Trends The problems facing Italy are long term and structural rather than related to the world economic crisis in 2008-09. They include: •Large public sector debt (well over 100% of GDP) •Institutional weaknesses (particularly in the south) •Competitive difficulties facing the clusters of specialist industries in the Po Valley Nevertheless, the economy did suffer in the second half of 2008 and the first half of 2009, according to reports by a number of different sources including the Organization for Economic Cooperation and Development (OECD), the EIU and IMF. 5 Tourism Market Profile Italy GDP (US$ billion) Real GDP Growth (%) Inflation f: forecast e: estimate 2007 2,119 1.5 2.0 2008 2,307 -1.3 3.5 2009e 2,118 -5.0 0.8 2010f 2,121 0.8 1.4 2011f 2,159 1.2 1.7 Table 3 - Key Economic Indicators 2007-2011f Source: IMF; Economic Intelligence Unit In light of the state of public finances and with no pressure from stricken banks, the Italian Government did not resort to massive fiscal support in 2009. Without such programs for 2010, the recovery in 2010 can be regarded as relatively safe. Although there have been fears (in view of the high level of public sector debt) of possible contagion from the Greek crisis, this does not seem likely. The forecasts nevertheless project a very gradual improvement, with a continued (but modest) rise in unemployment. Consumer Consumer confidence in Italy has followed the pattern common in most Confidence of the Euro zone, in August 2009 (at 106.5), ISAE’s overall index fell to its lowest level since April 2006 but recovered to 113.7 in December 2009. The market became hesitant again in the first half of 2010 and dropped by the middle of the year. f: forecast Figure 2 - Consumer Confidence Rates Indicators Source: IMF Tellingly, ratings for household situations and employment are lower than those for the economy, and retail trade reports indicate that propensity to spend in Italy is weak. 6 Tourism Market Profile Italy TRAVEL TRENDS OF THE ITALIAN MARKET Outbound Trips Euromonitor estimated that in 2007, 46% of the Italian population aged 15 and over made a trip abroad. Tourism Decision Metrics estimates that Italy generated 26.9 million arrivals worldwide in 2009, 4.9% fewer than in 2008. In 2010 according to the survey carried out by the National Tourism Observatory 30 million Italians went on holiday in summer 2010 (+ 16% over 2009). Of these, 72% spent their holiday in Italy and 28% abroad. Total Arrivals (‘000) % Annual Change 2005 24,426 2006 26,374 2007 27,260 0.8 8.0 3.4 2008 2009 2010 28,262 26,872 28,000 3.7 -4.9 3.7 Table 4 – Italy Outbound Travelers in Millions (2005 - 2010) Source: World Tourism Organization (UNWTO); Tourism Decision Metrics, Tourism / Oxford Economics The market was mildly affected by the global economic downturn in 200809. A survey of travel agencies by Tourism Australia found that the youth, honeymoon and luxury segments continued to perform well. Europe attracts the bulk of Italian outbound travelers (roughly 90%). Asian and Middle East countries have made the greatest gains over the last few years in terms of market share, with China accounting for much of the growth. Non-EU European countries on the other hand have seen a drop in Italian visitors, with the notable exception of Turkey. 7 Tourism Market Profile Italy Measure France TF Spain TF UK VF Germany TCE Croatia TCE Greece TF Egypt VF Austria TCE USA TF Switzerland THS Tunisia TF Turkey TF Portugal TCE Brazil TF Ireland TF 2005 7,234 2,957 1,186 1,291 1,253 1,129 823 1,102 546 461 473 282 315 304 190 2006 7,584 3,379 1,477 1,358 1,235 1,188 786 1,106 532 499 464 315 394 288 248 2007 8,140 2,623 1,615 1,440 1,249 1,252 983 1,058 634 542 444 398 402 269 265 2008 8,177 3,333 1,639 1,422 1,168 1,100 1,073 1,033 779 553 445 440 380 266 232 2009 na 3,179 1,221 na 1,200 na na 1,056 753 547 na na na na 276 Table 5 - Top 15 Leading Overseas Destinations 2005-2009 (Millions) Source: UNWTO VF: Visitors at frontiers TF = Tourists at frontiers TCE = Tourists at all forms of commercial accommodation THS = Tourists at hotels and similar Egypt is undoubtedly Jordan’s main competitor. Egypt currently ranks 6th in terms of number of arrivals from Italy, and 5th in terms of expenditure volume by Italians (Euromonitor). Despite a series of terrorist attacks in the mid-2000s, coupled with travel warnings from the Italian Government, Egypt has retained its appeal. Deals offered in conjunction with the Egyptian Tourism Ministry have played a vital role in preserving demand. Foreign tour operators were encouraged by the tourism ministry’s promise to share the financial risk of chartering aircraft they might not be able to fill. Some hotels even dropped the high-season surcharges they normally impose in August, maintaining their July prices. Egypt’s positioning as a value destination makes it an attractive choice for Italians looking to trim their expenditure on travel, but who are unwilling to compromise on quality. 8 Tourism Market Profile Italy Competing destinations in the region include: Figure 3 - Italian Arrivals in Competing Destinations (‘000), 2008 Source: UNWTO According to Eurostat data, the Italian propensity to travel is at 40.3%, which although is not the lowest in the whole of the EU, it is substantially lower than that of northern Europe. For instance, the German propensity to travel currently stands at around 92%, while those in the UK have a whopping 110% propensity to travel. This relatively lower propensity can be attributed to the fact that Italians are more inclined to holiday at home. According to the National Institute of Statistics (ISTAT), domestic trips comprise around 84% of all holidays taken by Italians. Furthermore, the average Italian traveler, as outlined by various market studies, tends to have little mastery of English compared to his/her northern European counterparts. Therefore, traveling outside the country is a more daunting task for Italians in general. Euromonitor provided the following breakdown of holiday activities (circa 2007): Visiting Places of Interest Visiting Cities Nature / Landscape Interacting with Local People Enjoying Meals and Drinks Visiting Museums Relaxing Enjoying Holiday 61% 59% 52% 43% 41% 38% 38% 38% Table 6 - Breakdown of Holiday Activities by Italians Source: Euromonitor International 9 Tourism Market Profile Italy According to Euromonitor data, Italian outbound travel by segment in 2009 can be summarized as follows: Figure 4 - Italy Outbound: Purpose of Travel Source: Euromonitor International International Travel UNWTO ranks Italy as the world’s sixth largest market for tourism after Expenditure Germany, the US, UK, China and France. Italy overtook Japan in 2007, but was itself overtaken by China in 2008. 2005 2006 2007 Total (US$ billion) 22.4 23.1 27.3 Annual Change (%)* 9.0 2.2 8.4 Spend per Trip / 920 880 1,000 Arrival (US$)** 2008 30.8 4.9 1,090 2009e 27.8 -4.6 1,040 2010 N/A N/A 1,550 Table 7 - Italian Expenditure on Travel Source: UNWTO * In local currency terms ** € 1.140 per head abroad according to the National Tourism Observatory e: estimate The growth in spending on travel abroad has been better than for trip volume, but it has nevertheless been below earlier expectations. Italy and Germany remained the highest spending outbound destinations in 2009, each with around Euro 2 billion (Euromonitor). 10 Tourism Market Profile Italy “Other Tourism Expenditure” includes travel agent services “Entertainment” includes attractions, theatres, guided city tours, etc. “Food ” includes restaurants Figure 5 – Italy’s Outgoing Tourist Expenditure by Sector in Millions of Euros: Value 2008/2009 Source: Euromonitor International According to the Ipsos-Europe Assistance Barometer, the average spending per tourist in 2010 will be 2,083 Euros; an increase of 17 Euros compared to 2009 (it was 2,235 Euros four years ago). The Italians, with a budget of 2,132 Euros (down by 72 Euros compared to 2009) are the fourth largest spending market in Europe, ranking after Britain, Belgium and Austria. Seasonality & Euromonitor estimated that in 2007-08, Italian residents aged 15 and over Average Length of made 23.0 million trips abroad, involving 174.4 million nights. Of these 23.0 Stay million trips, 15.6 million were holiday trips – 28% short trips (1-3 nights) and 72% long trips. In recent years there has been a trend towards taking two or three shorter holidays abroad instead of one long holiday. Data gathered by JTB’s MBR in Italy shows that national holidays in 2010 fall on: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1/6 4-5/25 1 2 15 1 8/25-26 Table 8 - Public Holidays in Italy Source: JTB MBR Italy 11 Tourism Market Profile Italy The precise dates of school holidays vary in each region, but typically are as follows: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 7 1 week 8 7 1 week 23 Table 9 - School Holidays in Italy Source: JTB MBR Italy Employees are typically entitled to 5-21 days of holiday, in addition to national and state holidays. Although August has been the traditional month for taking extended holidays, in recent years there has been a trend (especially by families without school aged children) towards taking holidays in September or June. There is also a trend towards shorter, more frequent holidays. Table 10 examines the average length of stay for Italians abroad: Table 10 - Average Length of Stay for Italians Internationally Source: Euromonitor International 12 Tourism Market Profile Italy Italian Traveler The Boston Consulting Group estimated that in 2006 there were around Profile 240,000 Italian households with investable assets of over US$1 million and 195,000 Italians with annual incomes of over US$1 million (most of them self-employed and a quarter of them living in Lombardy). Leisure continued to represent the main reason for Italians traveling abroad, accounting for almost 16 million departures in 2009. Leisure departures decreased by 3% in 2009 as difficult economic conditions in Italy forced Italians to remain at home or to opt for less expensive domestic tourism options. Business departures decreased by 4% in 2009 due to the difficult economic environment created by the global financial crisis. Business travelers usually visit a destination individually with the aim of meeting clients or attending/visiting conferences or exhibitions. The duration of stay can vary from a few days to some months. Moreover, in the past, companies using incentive travel as a motivational tool (mainly manufacturing, pharmaceutical and financial firms) was the main driver for business departures outside Italy. The financial crisis in 2009 and the need of many Italian companies to reduce expenses lay behind the decline in business departures in 2009. Backpackers and organized tour groups were the strongest growing traveler segments in 2009. This can be explained by the rising popularity of youth travel to youth hostels and to participate in work camps and workplace committees and staff in many large companies organize outbound travel for tour groups to benefit from cheaper prices. Women are also traveling more than in the past and they are also more likely to travel alone. This is in line with the share of women in the general Italian population, which stood at 50% in 2009. 13 Tourism Market Profile Italy ITALIAN TRAVEL TRENDS TO JORDAN Tourism Arrivals in Arrivals in Jordan from Italy have been rising strongly in recent years. Jordan from Italy They surged by over 50% in both 2007 and 2008 and managed a modest increase in the difficult circumstances of 2009. Figure 7 - Italian Arrivals to Jordan 2005-2009 Source: Ministry of Tourism and Antiquities (MOTA) e: estimate According to NTVS data of all Italian visitors 15% are Jordanian. Seasonality in The seasonality aspect for the Italian market (excluding August and Jordan Christmas) is completely changing. Industry groups are currently unable to predict seasonality (due to the increase of leisure, religious and MICE markets). During 2010 Royal Jordanian registered full bookings in May and November, which means the following are the “classic” low and high seasons for Italian visitors: • High Season: April (Easter and bridge holidays 25/4-1/5), August, September, October, Christmas time • Low Season: January, February, 1-5 March, June, 1-20 July, 1-20 December Note: ALS for Italians in Jordan is for package tours The average length of trip by Italians internationally is 7.6 nights, while the average length of trip for visits to Jordan in 2006-07 was 15.2 nights. 14 Tourism Market Profile Italy Figure 8 - Italian Arrivals to Jordan per Month Source: MOTA Purpose of Trip & Figures from the 2006-07 NTVS indicate that Italians travel to Jordan for Market Penetration the following reasons: 9% Note: 15% of total VFR visitors are Jordanians residing in Italy 26% 60% Figure 9 - Italian Arrivals to Jordan by Purpose of Travel Source: National Tourism Visitor Survey 2006-07 It is anticipated that 37% of Italian travelers to Jordan visited other counries on the same trip: 10% to Israel, 9% each to Palaestine and Syria, and 7% to Syria alone. Purpose of Travel Italy’s Outbound 2009 (‘000) Italy’s Arrivals into Jordan 2009 Jordan’s Market Share % Total Leisure Business MICE Other 23,260 15,708, 5,908 1,664 N/A 24,732 21,031 2,315 100 1,286 0.11% 0.13% 0.04% 0.01% N/A Table 11 - Jordan’s Penetration of Italy Outbound by Purpose of Travel Source: Euromonitor: Country Sector Brief & NTVS Data Reflected in 2009: Overnight only 15 Tourism Market Profile Italy Nature of Trip The 2006-07 National Tourism Visitor Survey (NTVS) found that 50% of visitors from Italy were first-time visitors and 15% were ‘frequent visitors’ (visiting the country more than four times in the previous five years), while 37% visited other countries in the same trip. Table 12 - Italian Traveler to Jordan Profile Source: Compilation by JTB & USAID / JTDP based on NTVS 2006-07 Data (Based on Overnight Visitors Only) 16 Tourism Market Profile Italy Accommodation Euromonitor and the 2006-07 NTVS reported the following breakdown for accommodation chosen by Italian travelers: Accommodation Type Hotels Holiday Homes Friends & Family Other Italians Traveling Internationally 61% 18% 10% 10% Italians Traveling to Jordan 59% 17% - Table 13 - Accommodation Preferences by Italians Source: Euromonitor International and NTVS 2006-07 Figure 10 shows the accommodation trends of Italian travelers to Jordan by location: Figure 10 - Total Arrivals and Nights in Hotels for Italians, Distributed by Location and Classification, 2009/ Based on Package Tours Source: MOTA 17 Tourism Market Profile Italy Spend in Jordan Italians on holiday spend more than people from other European countries, JD84 per day compared with a global average of JD65, according to the NTVS. Those visiting their friends spend only slightly more than average at JD31, while those on business (at JD55) spend somewhat less than the global average of that segment. Figure 11 - Italians’ Spend in Jordan By Purpuse of Visit (JD) Source: NTVS 2006-07 Sites Visited in Of all visitors from Italy, 89% went to at least one tourist site in Jordan. Jordan Italian visitors overwhelmingly liked Petra the best, with the Rose-Red city the site of choice for 52%. The Dead Sea and Aqaba were very distant second and third choices for Italian visitors at 8% and 7% respectively. According to the NTVS, following is a breakdown of most attractive sites as rated by Italian tourists in Jordan in 2006-07: Figure 12 - Most Attractive Sites in Jordan as Rated by Italian Travelers Source: NTVS 2006-07 18 Tourism Market Profile Italy ACCESS & TRANSPORT Airports The principal international airports in Italy are Rome Fiumicino (FCO) and Milan Malpensa (MXP). Other international airports include Alghero, Ancona, Bari, Bologna, Brescia, Brindisi, Cagliari, Catania, Florence, Forli, Genoa, Lamezia, Milan Linate, Milan Orio al Serio, Naples, Olbia, Palermo, Parma, Perugia, Pescara, Pisa, Rimini, Rome Ciampino, Treviso, Trieste, Turin, Venice and Verona. Access It is anticipated that with the start of new cruise operations by Costa Cruises in October 2010, the number of Italians arriving by sea will significantly increase. Figure 13 - Arrivals by Type of Transport Source: NTVS 2006-07 Airline Routes to Royal Jordanian offers five flights a week from Rome Fiumicino to Amman Jordan and three from Milan Malpensa to Amman in both summer and winter. Alitalia offers four flights a week from Rome Fiumicino to Amman. Indirect flights commonly used by passengers to Jordan include: •Austrian Airlines (via Vienna) •Turkish Airlines (via Istanbul) •Lufthansa (via Frankfurt) •Air France (via Paris) •El Al (via Tel Aviv). 19 Tourism Market Profile Italy JTB’s MBR in Italy says that tour operators offering Jordan in combination with Syria may use Syrianair flights to Aleppo and Damascus or Alitalia flights to Damascus. Charter services in 2009-10 have included weekly flights from Bergamo and Bologna to Aqaba by Eurofly for Viaggi del Turchese; and weekly flights from Milan MXP and Bologna to Amman (flying on to Sharm-el-Sheikh) by Neos and Meridiana, with a third flight from Bologna during the high season flying on from Amman to Sharm-el-Sheikh. In August-October and December-January Neos also flew a weekly service for Turisanda from Milan MXP to Amman. Cruise Services to Cruises are very popular among Italians. More than 6 million took a Jordan cruise holiday in 2006 and the number has reportedly risen sharply since then – particularly for winter cruises. However, arrivals by sea in Jordan represented only 3% of total arrivals from Italy - a much lower share than for other major European markets. Commencing in October 2010, Italy’s most popular cruise company, Costa Crociere, started operating the Red Sea Cruise as part of it’s winter trips (November through April) that call at Aqaba after starting in Egypt. The cruise ships also dock at Eilat/Israel. Costa Crociere offer daily excursions to Petra and Wadi Rum as part of the their stop in Aqaba. Costa also operates a monthly ‘Red Sea-Dubai’ cruise with a call at Aqaba. 20 Tourism Market Profile Italy ITALY TRAVEL PLANNING & BOOKING Travel Formalities In 2009, Jordan relaxed its visa restrictions for many important markets, including Italy. Italian nationals traveling to Jordan on tour operated packages (in groups or as individuals) can now receive their visas upon arrival. Starting January 2011, an increase in visa fees will be applied for all nationalities as follows: One Visit 20 JD Two visits 30 JD 6 Months and Multiple Entries 60 JD Tourist Groups for Free Foreign Currencies Exchange (Euro & USD) JD 1 : For 1.5 Euro / 1.5 USD Table 14 - Jordan Entry Visa Fees (Starting 1/1/2011) Source: MOTA A departure tax of JD8 (US$12) was reintroduced in summer 2010. Travel Decisions & JTB’s MBR in Italy reports that around 60% of all holiday trips are booked as Bookings package tours or tailor-made itineraries through a travel agency, 5% directly from a tour operator, 5% online from a tour operator or travel agency, and 30% online through individual suppliers or other intermediaries. For trips to Jordan, most Italian visitors (75%) booked through a travel agency, however a relative few (15%) booked online through individual suppliers and other intermediaries. A supplementary question in the Nation Brands Index survey of 2008 found that Italians rate conversations with friends or relatives as the most inspirational and trustworthy source of information for holidays. Italians refer to a particularly wide range of published and broadcast information (including travel guides and brochures, television programs, articles in magazines and newspapers and on the internet), and regard most as reasonably trustworthy. They are more suspicious of advertizing, social networking sites, and travel blogs. Tour Operators & There are over 400 tour operators and over 12,000 travel agents in Italy. Travel Agencies Although many tour operators sell direct to consumers over the internet, the overwhelming majority of their sales are through their networks of travel agents. Most operate on a regional basis, rather than covering the whole country. 21 Tourism Market Profile Italy The following tourism associations are operating in Italy: • FIAVET (Italian Federation of Associations of Travel and Tourism Agencies and Operators) was founded in 1961 and is the main association of travel agencies and more generally of tourism operators. FIAVET group is scattered throughout Italy in 16 regional associations, each one articulated by provincial representatives. FIAVET links 2500 regional travel agencies and tour operators. • ASSOTRAVEL is the national association of travel agents and tour operators, with a head office in Rome and branches in 19 Italian regions. ASSOTRAVEL is a partner of Confindustria (Italian Industrial Companies Association), Federturismo and Federexport. • FEDERTURISMO is the National Federation of the Travel and Tourism of Confindustria. It represents the entire tourism industry production chain. Federturismo Confindustria has 89 members, which currently include 25 organizations, 9 company members and 55 local associations. • ASTOI commenced in 2000 following the merger of Assotour and Atoi, both of which represented the Italian TOs that were already members of Federturismo. ASTOI is the most important representative tourism trade association, recognizing most of the travel industry, and working closely with the media and all sector stakeholders. ASTOI joined IFT (International Federation of Tour Operators), which enabled it to develop contacts with local counterparts in other European countries and allowed for close cooperation with leading non-governmental organizations in tourism, including the WTO (World Tourism Organization). The most important tour operators (by order) and travel agencies are: Tour Operators Alpitour Hotelplan Eden Viaggi Kuoni Quality Travel Agencies Giramondo Buonviaggio Welcome Travel Last Minute Tour Bluvacanze Table 15 - Leading Tour Operators & Travel Agencies in Italy Source: JTIB MBR Italy Some travel agency chains are associated with individual tour operators, such as Welcome Travel (associated with Alpitour), VentaPoint (Ventaglio), Gattinoni (Hotelplan) and CTS (linked to CTS Viaggi, the youth operator). There are approximately 5 leading tour operators that offer Jordan in their programs and bring annually over 30,000 Italian visitors, which constitutes just over 60% of total Italian arrivals. The rest come through smaller operators or on their own. 22 Tourism Market Profile Italy Online Travel Internet penetration in Italy is, by European standards, modest. Internet World Stats reports that 30 million people in Italy were internet users in June 2010, 52% of the population, compared with 58% in Europe as a whole, 82% in the UK, 79% in Germany and 69% in France. Broadband connections are relatively scarce and expensive. However, 3G mobile phone penetration is high. E-commerce has also been relatively slow to develop, partly because the use of credit cards is limited (and usually subject to modest monthly spending limits) and because Italians are reluctant to release personal information over the internet. Most travel spending over the internet consists of air and rail tickets. VisitBritain notes a tendency for Italian travelers to book their air passages over the internet and then go to a travel agency for a tour operator’s ground package. It is estimated that no more than 5% of tours and accommodation for trips to Jordan are booked over the internet. However, the internet is extensively used for gathering information about travel. Unattributed research reported by VisitBritain found that 53% of Italians choose the internet as a source of information for the organization of their holidays. The most important travel search sites in Italy include: •Expedia.it •Lastminute.it •Edreams.it •Opodo.it 23 Tourism Market Profile Italy MEDIA Newspaper readership in Italy is not high according to JTB’s MBR in Italy. The leading national newspapers, with daily circulations of around 3 million are: •Corriere della Sera (Milan) •La Repubblica (Rome) •La Stampa (Turin). Their national, regional and online editions carry travel sections and La Repubblica has a weekly travel supplement, I Viaggi di Repubblica. The leading financial daily is Il Sole 24 Ore. There are another dozen newspapers with a circulation of over 1 million and about four dozen more with a circulation of over 100,000, many of them regionally based. Italy has an extremely wide range of consumer magazines, including many sports, lifestyle, women’s, men’s and religious titles. The principal news magazines are: •Panorama •L’Espresso. Consumer travel monthly magazines include: •Bell’Europa •Club 3 •Dove •Gente Viaggi •Golf & Turismo •In Viaggio •Itinerari e Luoghi •Meridiani •Panorama Travel •Partiamo •Plein Air •Qui Touring •Traveller •Tuttoturismo •Vie del Gusto •V&S •Weekend Viaggi. 24 Tourism Market Profile Italy The leading trade publications are: •Travel Quotidiano •L’Agenzia di Viaggi •Guida Viaggi •TTG Italia •Turismo & Attualità •Trend for Leisure Tourism and MICE •Incentivare, Meeting e Congressi, for the business tourism sector •Mission and Convegni for the business tourism sector. The main terrestrial TV networks (each with several channels) are the state-owned RAI, the commercial Mediaset and La7. In contrast to many other major European markets, these still carry travel programs as well as a number of lifestyle and geographic/wildlife programs, which sometimes feature travel destinations. The main subscription service providers are Sky Italia, Mediaset Premium, Alice and Fastweb. The principal radio broadcasters are RAI (with a range of programs), Radio 24, R101 and Radio Italia. 25 Tourism Market Profile Italy IMAGE & PERCEPTIONS OF JORDAN Strengths & The Middle East generally has risen in popularity among Italians over the Weaknesses past decade and this has been in line with a growth in interest for cultural and historical experiences while on holiday. Nevertheless, the market for Jordan and its neighbors is relatively small and likely to remain a niche segment for the foreseeable future. As with visitors from other countries, 99% enjoyed their trip and 85% would come again, while 93% would recommend Jordan to other people. The travel trade seems to be well disposed towards Jordan. Factors listed by JTB’s MBR in Italy include a good image among the public, good travel services, easy access via a short-haul flight, high standards of safety, hospitality and religious tolerance, and a complete range of products, including unique attractions such as Petra, Wadi Rum and the Dead Sea. Tour operator staff are generally well qualified to sell Jordan. Many tour operators periodically send their counter staff and managers to Jordan as group escorts. Competition Like the Middle East, which includes a number of competing destinations (see below), Africa has been experiencing an upturn in Italian tourists in recent years. Djerba in Tunisia and various cities and beach resorts in Morocco have been gaining popularity. Jordan’s main competitors in the region are believed to be: Figure 14 - Jordan’s Main Regional Competitors by Niche Source: JTB MBR Italy 26 Tourism Market Profile Italy PROSPECTS Destinations which are commonly offered in combination with Jordan include Israel, Syria, Egypt, Dubai, the Red Sea and Lebanon, roughly in that order. Although there are some serious long-term questions about the prospects for the Italian economy, the country has weathered the world economic downturn relatively well. Consumer confidence has nevertheless been weak and propensity to spend remains low. A Flash Euro Barometer survey on travel intentions confirms a reluctance to spend; the responses in Italy were significantly weaker than the EU average and even weaker than those in Spain, a country much more severely affected by the downturn. Only 29% replied that they could cope without major difficulties, compared with 39% in Spain and 41% in Europe. Interestingly, 49% said they might cancel their winter holidays if necessary, while main holidays and short breaks seemed to be safer in Italy than other EU markets. Outbound tourism is therefore expected to stage a modest recovery in 2010 and 2011. Tourism Decision Metrics forecasts that outbound trips from Italy will recover to their 2008 levels by 2012, but almost all growth in the following few years will be to destinations within Europe. The Italian market showed a dramatic 51% increase in 2007 over 2006. Some 16 million people in Italy are between the ages of 40 and 59 (only 35% of Italian visitors to Jordan are in this age group). While propensity to travel has traditionally declined among Italians over the age of 55, this is changing. A number of niche travel operators have become increasingly popular in Italy. 27 Tourism Market Profile Italy Based on research conducted for the Jordan Tourism Board, the best markets and segments to tap to ensure optimum growth in the short to medium term would be the following: 28 Tourism Market Profile Italy 29 Tourism Market Profile Italy SOURCES The principal sources used for this market profile included: • Euromonitor International • Jordan Tourism Board (JTB) • JTB Market-based Representative in Italy (JTB MBR Italy) • International Monetary Fund (IMF) • Institute for Studies and Economic Analyses (ISAE) • IPK International’s European Travel Monitor • Italian National Institute of Tourism Research (ISART) • Ministry of Tourism and Antiquities (MOTA) • National Institute of Statistics, Rome (ISTAT) • United Nations Population Division • USAID/Jordan Tourism Development Project (JTDP) 2009 study “Tourism Patterns in Jordan: Analysis of the National Tourism Visitor Survey” • VisitBritain.com • World Tourism Organization (UNWTO) 30 Tourism Market Profile Italy LIST OF ABBREVIATIONS ALS Avg. EIU EU GDP IMF Incl. ISAE ISTAT JTB JTDP MBR MICE MOTA N/A NTVS OECD PPP TOs UNWTO USAID VFR 31 Average Length of Stay Average Economic Intelligence Unit European Union Gross Domestic Product International Monetary Fund Including Institute for Studies and Economic Analyses National Institute of Statistics Jordan Tourism Board Jordan Tourism Development Project Market-based Representative Meetings, Incentives, Conferences and Exhibitions Ministry of Tourism and Antiquities Not Available National Tourism Visitors Survey Organization for Economic Cooperation and Development Purchasing Power Parity Tour Operators United Nations World Tourism Organization United States Agency for International Development Visiting Friends and Relatives Tourism Market Profile Italy LIST OF FIGURES & TABLES Figure 1 - Division of Religions in Italy Figure 2 - Consumer Confidence Rates Indicators Figure 3 - Italian Arrivals in Competing Destinations (‘000), 2008 Figure 4 - Italy Outbound: Purpose of Travel Figure 5 - Italy’s Outgoing Tourist Expenditure by Sector in Millions of Euros: Value 2008 / 2009 Figure 6 - Italian Leisure Departures by Type (%) Figure 7 - Italian Arrivals to Jordan 2005-2009 Figure 8 - Italian Arrivals to Jordanper Month Figure 9 - Italian Arrivals to Jordan by Purpose of Travel Figure 10 - Total Arrivals and Nights in Hotels for Italians, Distributed by Location and Classification, 2009 / Based on Package Tours Figure 11 - Italians’ Spend in Jordan by Purpose of Visit (JD) Figure 12 - Most Attractive Sites in Jordan as Rated by Italian Travelers Figure 13 - Arrivals by Type of Transport Figure 14 - Jordan’s Main Regional Competitors by Niche Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14 Table 15 - 32 Euro (€) Exchange Rate 2008-2010 Age Distribution in Italy Key Economic Indicators 2007-2011f Italy Outbound Traveler in Millions (2005 - 2010) Top 15 Leading Overseas Destinations 2005-2009 (Millions) Breakdown of Holiday Activities by Italians Italian Expenditure on Travel Public Holidays in Italy School Holidays in Italy Average Length of Stay for Italians Internationally Jordan’s Penetration of Italy Outbound by Purpose of Travel Italian Traveler to Jordan Profile Accommodation Preferences by Italians Jordan Entry Visa Fees (Starting 1/1/2011) Leading Tour Operators & Travel Agencies in Italy 5 6 9 10 11 14 14 15 15 17 18 18 19 26 4 4 6 7 8 9 10 11 12 12 15 16 17 21 22