CYPRUS TOURISM STRATEGY
CYPRUS TOURISM STRATEGY Stakeholder presentation Nicosia, October 3, 2017 Jรถrn Gieschen
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CYPRUS TOURISM STRATEGY
Not another one for the bookshelves, please!
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CYPRUS TOURISM STRATEGY
Two central pillars for strategy success
Participation System
Implementation System
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CYPRUS TOURISM STRATEGY
Ambitious, knowledgeable, and caring partners
Ministry of Energy, Commerce, Tourism and Industry
Cyprus Tourism Organization
Hermes Airports
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CYPRUS TOURISM STRATEGY
An intensive ongoing participatory process Site inspection trip
• The field visit was a key element of the research phase, as it provided the team with an overall picture of Cyprus and an understanding of how Cyprus performs as a tourism destination
33 One-to-one Interviews
• 33 interviews to selected stakeholders, covering private and public sectors, such as: ⌐ Government ⌐ Regional & local authorities ⌐ Chambers of Commerce ⌐ Museums & leisure entities ⌐ Professional associations ⌐ Universities ⌐ Accommodation
⌐ Developers & Investors ⌐ Tour Operators ⌐ Etc.
17 Workshops (114 participants)
2 Types: • Territorial workshops, one per region • Sectorial workshops
Working sessions & questionnaires to Offices abroad
• Project Management Team sessions • Sounding Board sessions • The CTO (1 week-long session)
⌐ Accommodation ⌐ F&B
Additionally…
⌐ Airlines
• Online questionnaires to CTO offices abroad.
⌐ Historic & cultural heritage ⌐ Natural preservation areas ⌐ Travel agencies & operators ⌐ Handicraft & local products ⌐ MICE ⌐ Wineries ⌐ Tourism planners and managers
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CYPRUS TOURISM STRATEGY
External Analysis – More interviews Secondary Market Research • European Travel Monitor /Behavior • WEF Competitiveness Index • 17 Countries & 7 segments reports
Interviews with collaborators: airlines and tour operators • 31 tour operators in 5 selected source markets. • 10 airlines in main source and key markets.
Consumer Survey in selected source markets • 1.700 interviews in 5 countries • Brand Adoption Process Research
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CYPRUS TOURISM STRATEGY
Two central pillars for strategy success
Participation System
Implementation System
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CYPRUS TOURISM STRATEGY
Balanced Scorecard Become, before 2030, an all year-round sustainable destination Process
Strategy map
Value for stakeholders
Results for Cyprus (2030)
receiving 4,8m intl. tourists - 40% of whom during Nov-Apr
International tourists (M.) 4,8
Tourism Revenue (M. €) 7.000
New tourism keys to develop 30.000
PARTNERS Attractive business opportunities
CUSTOMERS An exceptional tourism experience 1.
Strategic Processes DRIVERS
GDP Contribution 28%
2.
INVESTORS Attractive investment environment & opportunities 3.
Attract the right amount of vetted investors and MSMEs
Wise tourism index 850/1000
SOCIETY Better quality of life and sustainability
4.
A. Develop a system of high value experiences in Cyprus
D. Implement excellent tourism development master planning
G. Attract necessary vetted investors
J. Develop a powerful tourism brand
M. Design and manage a tool to assess tourism sustainability
B. Significantly improve the value along the customer journey
E. Define and manage clear growth models for all regions
H. Ensure competitive MSMEs grow in Cyprus
K. Conquer more higher yielding tourists
N. Reduce carbon footprint of tourism activity in Cyprus
C. Dramatically reduce visual pollution in the destination
F. Increase product diversification and innovation
I. Increase the quantity and quality of market partners
L. Reduce seasonality
O. Enhance vulnerable economic activities and protect cultural identity
P. Promote productivity improvement tools Q. Reengineer legal and regulatory framework R. Educate and train the right people S. Develop air capacity Source: THR based on “The Execution Premium”, Kaplan & Norton
Conquer more better yielding customers
5.
Excel in planning and development
Develop a highly competitive diamond for the tourism sector
ENABLERS
Investment required (public & private) (M. €) 20.000
Deliver an exceptional tourism experience
6.
Learn and growth
Total new Employment 47.000
Benefiting the local society and the environment
7.
Implement a governance & management framework and culture T. Establish a sound system of modern governance U. Implement an efficient management framework V. Launch a state-of-the-art monitoring system 8
CYPRUS TOURISM STRATEGY
Breaking it down to concrete & measurable actions
22 Objectives
KPIs &
Targets
22 Initiatives
85 Work streams
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CYPRUS TOURISM STRATEGY
A holistic institutional framework
Coordination across Government ministries and other bodies
Monitor and administrate the Strategy development and execution
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2
Inter-Ministerial Committee for Tourism
National Alliance for Tourism
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4
Office of the Strategy Manager
National Tourism Authority
Main government counterpart to reach consensus on major issues
Lead the successful implementation of the Strategy
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CYPRUS TOURISM STRATEGY
Tourism vision 2030
Becoming, before 2030, an all year-round sustainable “premium” destination receiving 4,8m intl. tourists - 40% of whom between Nov-Apr
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CYPRUS TOURISM STRATEGY
A sophisticated Simulation Platform has been developed INPUTS 1. CYPRUS TOURIST BEHAVIOUR ASSUMPTIONS BY PURPOSE OF VISIT (2030)
2. CVP POSITIONING STRATEGY OF CYPRUS (2030)
A. INTERNATIONAL TOURISTS
A. INTERNATIONAL TOURISTS
A1. PLEASURE
A3. VISIT FRIENDS AND RELATIVES Segment by Degree of Sophistication
Behaviour Variables
The simulation model is a comprehensive platform in which the principal tourism figures and macroeconomic impacts are projected for 2030
Low Cost
Mass
Affluent
Luxury
9,5 78,75 1,30 70% 1,85
9,5 105,00 1,00 70% 1,85
9,5 157,50 0,70 75% 1,85
10,0 420,00 0,50 75% 1,85
Average Length of Stay Average Expenditure / Day Price Elasticity of Demand % Usage of Tourism Accomod. Double Occupancy Rate A2. BUSINESS
Segment by Degree of Sophistication
Behaviour Variables
Low Cost
Mass
Affluent
Luxury
12,0 37,88 1,30 0% 1,85
15,0 50,50 1,00 0% 1,85
18,0 75,75 0,70 3% 1,85
21,0 126,25 0,50 5% 1,85
Average Length of Stay Average Expenditure / Day Price Elasticity of Demand % Usage of Tourism Accomod. Double Occupancy Rate
Low Cost
Mass
Affluent
Luxury
4,0 130,50 1,30 95% 1,10
4,5 145,00 1,00 95% 1,10
4,5 290,00 0,70 100% 1,10
5,0 580,00 0,50 100% 1,10
Average Length of Stay Average Expenditure / Day Price Elasticity of Demand % Usage of Tourism Accomod. Double Occupancy Rate
A3. VISIT FRIENDS AND RELATIVES CVP Positioning Strategy
Market Segments Structure
Low Cost Market Mass Market Affluent Market Luxury Market
World Average
20% 50% 25% 5% 100%
Premium
High-End
10% 20% 55% 15% 100%
Low Cost
Mass
Affluent
Luxury
1,0 37,88 1,30 0% 1,00
1,0 50,50 1,00 0% 1,00
1,0 75,75 0,70 0% 1,00
1,0 126,25 0,50 0% 1,00
Average Length of Stay Average Expenditure / Day Price Elasticity of Demand % Usage of Tourism Accomod. Double Occupancy Rate
Low Cost Market Mass Market Affluent Market Luxury Market
World Average
Premium
20% 50% 25% 5% 100%
10% 20% 55% 15% 100%
High-End
5% 15% 60% 20% 100%
A4. DAY VISITORS
Segment by Degree of Sophistication
Behaviour Variables
CVP Positioning Strategy Market Segments Structure
5% 10% 60% 25% 100%
A2. BUSINESS
A4. DAY VISITORS Segment by Degree of Sophistication
Behaviour Variables
A1. PLEASURE
CVP Positioning Strategy Market Segments Structure
Low Cost Market Mass Market Affluent Market Luxury Market
World Average
20% 50% 25% 5% 100%
Premium
High-End
10% 20% 55% 15% 100%
CVP Positioning Strategy Market Segments Structure
5% 10% 60% 25% 100%
Low Cost Market Mass Market Affluent Market Luxury Market
World Average
Premium
20% 50% 25% 5% 100%
10% 20% 55% 15% 100%
High-End
5% 15% 60% 20% 100%
B. DOMESTIC TOURISTS
B. DOMESTIC TOURISTS
B1. DOMESTIC
B1. DOMESTIC Segment by Degree of Sophistication
Behaviour Variables
Low Cost
Average Length of Stay Average Expenditure per Day Price Elasticity of Demand % Usage of Tourism Accomod. Double Occupancy Rate (DOR)
5,5 35,20 1,20 35% 1,85
Mass
Affluent
Luxury
6,0 44,00 1,00 40% 1,85
6,0 66,00 0,80 40% 1,85
6,5 132,00 0,60 40% 1,85
CVP Positioning Strategy Market Segments Structure
Low Cost Market Mass Market Affluent Market Luxury Market
Calculat ions: Price elasticity in absolute v alue E = dQ/dP
World Average
30% 40% 25% 5% 100%
Premium
High-End
25% 40% 30% 5% 100%
20% 40% 35% 5% 100%
OUTPUTS 8. PROJECTED DEMAND & ROOM NIGHTS (2030)
9. REQUIRED ACCOMMODATION (2030)
A. PROJECTED TOURISM ARRIVALS World Av. 5.834.401 4.887.195 323.520 367.017 256.670 1.406.745 7.241.147
Difference from World Av erage
A. TOURISM ACCOMMODATION KEYS REQUIRED
Projected Tourism Arrivals
CVP Positioning Strategy
Purpose of Visit International Pleasure Business VFR Day Visitors Domestic Total
Premium 4.848.804 4.062.143 259.401 310.274 216.987 1.365.611 6.214.415
High-end 4.374.634 3.648.205 232.130 290.877 203.422 1.324.477 5.699.111
-1.026.731
-1.542.036
7.000.000
Domestic
6.000.000
Day Visitors
5.000.000
VFR
4.000.000
Business
3.000.000
Pleasure
2.000.000 1.000.000 0
World Av.
B. TOURISM ACCOMMODATION ROOM NIGHTS World Av. 19.126.680 17.858.666 1.239.118 28.895 0 1.681.871 20.808.551
Difference from World Av erage
High-end
Tourism Accommodation Room Nights
CVP Positioning Strategy
Purpose of Visit International Pleasure Business VFR Day Visitors Domestic Total
Premium
Premium 16.388.633 15.287.087 1.032.762 68.784 0 1.653.014 18.041.647
High-end 14.987.393 13.958.038 949.577 79.778 0 1.624.156 16.611.549
-2.766.904
-4.197.002
25.000.000 20.000.000
Domestic Day Visitors
15.000.000
VFR Business
10.000.000
Pleasure 5.000.000 0 World Av.
Premium
High-end
Hotel Keys Required
CVP Positioning Strategy
8.000.000
Accom. Cat egory Hotels / Hotel Apart. 5* Grand Luxury 5* 4* 3* Inns Comfort Basic (Economy) Special Lodging Enhanced Comfort Comfort Basic (Economy) Guest Houses Enhanced Comfort Comfort Basic (Economy) Campsites Enhanced Comfort Comfort Basic (Economy) Total keys - Current licensed keys Net Total to be developed
World Av. 74.203 742 10.388 29.681 33.391 5.429 2.715 2.715 8.144 2.036 2.850 3.258 1.810 452 633 724 905 226 317 362 90.492 -48.144 42.348
Difference from World Av erage
Premium 66.690 1.667 18.340 23.342 23.342 3.138 2.040 1.098 6.277 1.883 3.138 1.255 1.569 471 628 471 785 235 353 196 78.459 -48.144 30.315
High-end 64.293 3.215 22.503 22.503 16.073 2.167 1.517 650 4.334 1.734 1.734 867 722 289 289 144 722 289 361 72 72.240 -48.144 24.096
-12.033
-18.252
80.000 70.000
3*
60.000
4*
50.000
40.000
5*
30.000
5* Grand Luxury
20.000 10.000 0
World Av.
Premium
High-end
Other Accommodation Keys Required 18.000 16.000
Inns
14.000 12.000
Campsites
10.000
Guest Houses
8.000
Special Lodging
6.000 4.000 2.000 0
World Av.
Premium
High-end
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CYPRUS TOURISM STRATEGY
3 different growth models for Cyprus A
B
C
“Standard” model
“Premium & wise growth” model
“Premium & soft growth” model
Aiming to maximise the full growth potential. This model attracts a higher number of tourists, although not of revenues (as lower expenditure tourists are targeted).
Focuses on growing intelligently and with greater economic, social and environmental profitability. This model attracts fewer tourists than the “Standard” as a result of a demand strategy that targets higher spending tourists
Based on the “Premium & wise growth” model but with an even lower volume of tourists, but maintaining their high spending profile, therefore it requires less new developments.
THR recommends this model
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CYPRUS TOURISM STRATEGY
A Premium Demand Strategy is recommended
Luxury Affluent
Standard strategy 5%
Premium strategy 15%
25%
High-end strategy 25%
Higher per day expenditure 55%
Mass market
50%
60%
More discerning and lower negative impacts
20%
Low cost
20%
10%
Longer stay
10% 5%
* The CTS is adopting a Premium Demand Strategy, according to which by 2030 Cyprus will be visited annually by 4.63 million international tourists, 0.21 million same day visitors and 1.36 million domestic visitors. This will represent lower visitor numbers, with higher expenditure and economic contribution, and with lower negative impacts.
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CYPRUS TOURISM STRATEGY
Tourism demand results alternatives (2030) Standard Premium High-end destination destination destination 2030 2030 2030
Main variables
Units
2015
1
International Visitors
Thousands
2.656(1)
5.578
4.631
4.368
2
Same day Visitors
Thousands
120(2)
257
216
203
3
Domestic Tourism
Thousands
1.297(3)
1.407
1.366
1.324
4
Total Visitor volume
Thousands
4.070
7.241
6.214
5.699
(1) CYSTAT 2015, (2) CYSTAT 2014-Statistics on Movements of Travellers, (3) CYSTAT 2014-Annual data on domestic and outbound trips of Residents of Cyprus
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CYPRUS TOURISM STRATEGY
Tourism demand results alternatives (2030) Main variables
Standard Premium High-end destination destination destination 2030 2030 2030
Units
2015
Overnight Stays (4)
Thousands
30.545
61.076
53.263
49.037
Average 6 expenditure / day
Euro
94(5)
102,53
133,91
157,78
Average 7 expenditure / stay
Euro
794(6)
874,84
1.147,74
1.357,59
Mill. Euro
2.352
6.335
7.133
7.737
5
8
Tourism Expenditure
(4) No distinction is made between accommodation types (hotels/apartments, licensed/unlicensed) (5) CYSTAT 2014 (6) CYSTAT 2014
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CYPRUS TOURISM STRATEGY
Cyprus’ strategic change agenda From…
…To
Tourism model
Standard destination
Premium destination
Type of tourism
A single product
Multiple products
GDP %
13%
28%
Markets
UK + Russia (58%)
UK + Russia (45%)
Marketing
Traditional
360º Digital
Investment
Unattractive
Attractive
Real estate
A problem
A solution
PP collaboration
Very low
High
Seasonality
Very high
Medium-low
Air connectivity
Medium
High
Wise tourism
Hardly considered
Very considered
Governance
Inefficient
Very efficient
Associationism
Weak
Strong 17
CYPRUS TOURISM STRATEGY
Table of contents
Vision
External Analysis
Internal Analysis
Key issues to be tackled
the Strategy
2 Formulating the Strategy
The Core Strategy
3 Planning
the Strategy B. Score Card
Objectives, KPI´s & Initiatives
Separate action plans
Strategy Direction Statements
Growth & territorial models
4 Implementing the Strategy
Implementation framework Investments, budget and impacts Social and economic impacts
Roadmaps and critical actions
Achieving the Vision
1 Preparing
CYPRUS TOURISM STRATEGY
2.1 The Main Competitive Advantage
Best climate in Europe, all year-round
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CYPRUS TOURISM STRATEGY
2.2 The 3 reinforcers of the main advantage A great menu of tourism experiences A strong system of tourism experiences (to be developed) • Top experiences (5-10) • Branded experiences (3-5) • Signature experiences (2040)
8 special destination attributes
A competitive advantage per business model
The country:
• Sun & Sea
A modern, EU member state
• Itineraries and culture • Meetings
The destination’s 6 special features: an ideal tourist destination
• Cycling • Sport stages
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CYPRUS TOURISM STRATEGY
Scope: Strategic source markets UK
Belgium Netherlands Source market attractiveness
Poland
France
Russia
Switzerland
Germany Nordic
Invest
Ireland Italy China
India
Lebanon
Israel
Austria
Ukraine
UAE/Qatar
USA Bulgaria Belarus
Manage
Hungary Lithuania
Greece
Romania
Jordan
Manage selectively
Japan
Competitive strength of Cyprus
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CYPRUS TOURISM STRATEGY
Brand adoption funnel Cyprus - Lots of work to do‌
Not having visited Cyprus 100%
Having visited Cyprus 100%
Total universe
Understanding
66%
Attractivness
95%
Affordability Purchase intention short/mid term
48%
92%
-3%
97%
Awareness
-34% -5%
-52%
85% -15%
Source: Brand adoption survey Base: Past visit to Cyprus: 691 / No past visit to Cyprus: 1.025
22%
-8%
-78%
94%-6% 40%
-60%
63%
-37% 22
CYPRUS TOURISM STRATEGY
Positive and negative perceptions Climate / sun
39%
Beaches
18%
Landscape / nature
14%
Rich / interesting culture
12%
Friendly / warm people Good food / Gastronomy
10% 6%
Geopolitic problems / tensions with Turkey
24%
Too busy / touristy / overcrowded /noisy
13%
Expensive, unfavorable exchange rate
13%
Unsafe, crime, terrorism risks
10%
Too hot, unpleasant climate
8%
Too long flight, too far
6%
Flight connection / easy to reach
4%
Economic crisis / poverty
5%
Affordable / cheap
4%
Migrants, refugees presence
5%
Quiet / relax / peaceful
3%
Not enough sites to visit / too small destination
Lots to see and do
2%
Language barriers
Source: THR based on Brand adoption survey Base: Total sample: 1.700
4% 2%
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CYPRUS TOURISM STRATEGY
Scope: Market segments
Short breaks
Sun & Sea
Itineraries & Culture
Product attractiveness
Meetings
Adventure
Medical
4th gen. resorts Wellness Sailing&Yachting High-end homes Nature
Amateur-Pro Sports
Invest
Manage
Cycling
Golf
Manage selectively
Weddings
Strategic fit
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CYPRUS TOURISM STRATEGY
Example: Itineraries & Culture business model Action
X Type of action
KEY PARTNERS M
R
Establish a network of “Grand Tour of Cyprus” partners
KEY ACTIVITIES E Conduct specialized educational programs for different stakeholder groups
M In Attract renowned international hospitality brands
COST STRUCTURE
M Design and manage the experiential system of the “Grand Tour of Cyprus”
CUSTOMER RELATIONSHIPS M
Develop the brand “Grand Tour of Cyprus”
Communicate the market strategy for the “Grand Tour of Cyprus”
M
Develop and manage a network of diverse, thematic and attractive routes
KEY RESOURCES
CUSTOMER SEGMENTS
M
I
A Coordinate the development of “Grand Tour of Cyprus” with rental companies
VALUE PROPOSITION
Implement a communication strategy for the “Grand Tour of Cyprus”
CHANNELS M Develop a dedicated “Grand Tour of Cyprus” website
REVENUE STREAMS (2030)
620.000 arrivals
X ≈1.280 EUR/arrival =
≈ 790 mill. EUR
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CYPRUS TOURISM STRATEGY
Example: The Grand Tour of Cyprus Comfortable “drive yourself” routes
Memorable experiences
Attractive mix of natural and cultural attractions
High quality service
Boutique hotels
Booking platform
Cypriot flavours and eating experiences
24-hrs road assistance service
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CYPRUS TOURISM STRATEGY
Example: Itineraries & Culture development plan Actions 1
Communicate a market strategy for the “Grand Tour of Cyprus”
2
Develop and manage a portfolio of diverse and attractive routes
3
Design and manage an experiential system of “Grand Tour of Cyprus”
4
Develop and manage a "Grand Tour of Cyprus" accredited network of partners
5
Coordinate the development of “Grand Tour of Cyprus with rent-a-car companies”
6
Provide training and workshops to key stakeholders involved in “Grand Tour of Cyprus”
7
Attract renowned international hospitality brands
8
Develop a dedicated “Grand Tour of Cyprus” website
9
Develop the brand “Grand Tour of Cyprus”
10 Implement a communication strategy for the “Grand Tour of Cyprus” 27
CYPRUS TOURISM STRATEGY
Table of contents 2 Formulating
the Strategy
Internal Analysis
the Strategy
B. Score Card
Key issues to be tackled
Vision
External Analysis
the Strategy
3 Planning
The Core Strategy
Objectives, KPI´s & Initiatives
Separate action plans Strategy Direction Statements
Growth & territorial models
4 Implementing the Strategy
Implementation framework Investments, budget and impacts Social and economic impacts
Roadmaps and critical actions
Achieving the Vision
1 Preparing
CYPRUS TOURISM STRATEGY
25 key issues identified to be tackled by strategy
Vision Key enablers
25 key issues Key obstacles Present
CYPRUS TOURISM STRATEGY
Example: Issues, Strategy Directions and Objectives (cont.) 2. Customer journey’s value Issue / Strategic Question Tourism experiences How can we develop a unique system of tourism experiences in Cyprus?
Satisfaction on services What can we do to improve service satisfaction?
Visual pollution How can we dramatically reduce visual pollution in Cyprus?
Strategy Directions
Objective
All over Cyprus we will “wow” our guests with a range of unique and authentic natural and cultural experiences. The public sector will lead this development of a new experience culture, applying highly creative methods and smart management, generating happy visitors and profitable businesses.
A. Develop a system of high value experiences in Cyprus.
With the help of an attractive labelling system, we will increase and guarantee selected quality standards and characteristics, guide tourists, and help to manage expectations. We will constantly monitor and manage customer satisfaction across the different labelled destinations, products, and services.
B. Significantly improve the value along the customer journey
All stakeholders will make maximum efforts to enhance and protect the visual aesthetic of Cyprus. We will remove unnecessary and/or degraded signage and advertising panels, protect urban spaces from unregulated development and pollution and reflect our cultural heritage in our planning and building design.
C. Dramatically reduce visual pollution in the destination
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CYPRUS TOURISM STRATEGY
Table of content 2 Formulating
the Strategy
Internal Analysis
the Strategy
B. Score Card
Key issues to be tackled
Vision
External Analysis
the Strategy
3 Planning
The Core Strategy
Objectives, KPI´s & Initiatives
Separate action plans Strategy Direction Statements
Growth & territorial models
4 Implementing the Strategy
Implementation framework Investments, budget and impacts Social and economic impacts
Roadmaps and critical actions
Achieving the Vision
1 Preparing
Outcome 1
Deliver an exceptional tourism experience Strategic objective
Measure
KPI 2018: 2 brand experiences 2019: 3 top and 10 signature experiences
Initiative
A
Develop a system of high value experiences in Cyprus
Number of experiences developed/ year
B
Significantly improve the value along the customer journey
% of tourism services and companies labelled/ year
2018: 15% 2019: 20% 2020: 30%
Introduce the 2 Cyprus Quality Label system
C
Dramatically reduce visual pollution in the destination
“Black spots” removed /year
2018: 10 2019: 15 2020: 20
3 pollution initiative
Set up the 1 “Experience Cyprus” program
Run a visual
Cyprus Tourism Strategy
32
CYPRUS TOURISM STRATEGY
The Strategy Map
Value for stakeholders
Results for Cyprus (2030)
Become, before 2030, an all year-round sustainable destination receiving 4,8m intl. tourists - 40% of whom during Nov-Apr
International tourists (M.) 4,8
Tourism Revenue (M. €) 7.000
New tourism keys to develop 30.000
PARTNERS Attractive business opportunities
CUSTOMERS An exceptional tourism experience 1.
Strategic Processes DRIVERS
GDP Contribution 28%
2.
INVESTORS Attractive investment environment & opportunities 3.
Attract the right amount of vetted investors and MSMEs
Wise tourism index 850/1000
SOCIETY Better quality of life and sustainability
4.
A. Develop a system of high value experiences in Cyprus
D. Implement excellent tourism development master planning
G. Attract necessary vetted investors
J. Develop a powerful tourism brand
M. Design and manage a tool to assess tourism sustainability
B. Significantly improve the value along the customer journey
E. Define and manage clear growth models for all regions
H. Ensure competitive MSMEs grow in Cyprus
K. Conquer more higher yielding tourists
N. Reduce carbon footprint of tourism activity in Cyprus
C. Dramatically reduce visual pollution in the destination
F. Increase product diversification and innovation
I. Increase the quantity and quality of market partners
L. Reduce seasonality
O. Enhance vulnerable economic activities and protect cultural identity
P. Promote productivity improvement tools Q. Reengineer legal and regulatory framework R. Educate and train the right people S. Develop air capacity Source: THR based on “The Execution Premium”, Kaplan & Norton
Conquer more better yielding customers
5.
Excel in planning and development
Develop a highly competitive diamond for the tourism sector
ENABLERS
Investment required (public & private) (M. €) 20.000
Deliver an exceptional tourism experience
6.
Learn and growth
Total new Employment 47.000
Benefiting the local society and the environment
7.
Implement a governance & management framework and culture T. Establish a sound system of modern governance U. Implement an efficient management framework V. Launch a state-of-the-art monitoring system Cyprus Tourism Strategy
33
CYPRUS TOURISM STRATEGY
Example: Initiative and workstreams Initiative 1. Set up the “Experience Cyprus Programme�
1. Install the Cyprus Experience Agency
2. Start the Top Experience programme 3. Launch the Signature Experiences programme
4. Promote Brand Experiences 5. Initiate experience marketing and communication system 34
CYPRUS TOURISM STRATEGY
Example: Initiative and workstreams Initiative 4.
Implement the National Tourism Planning Initiative
1. Establish a Centralised Tourism Planning Unit (CTPU)
2. Launch Regional Tourism Development Master Plans 3. Review and redraft the Legal and Regulatory Framework
4. Establish a Land Acquisition Strategy 35
CYPRUS TOURISM STRATEGY
Example: Initiative and workstreams Initiative 8.
Launch a MSME support programme
1. Create a MSME support service
2. Develop a special start-up and entrepreneurship programme
36
CYPRUS TOURISM STRATEGY
Example: Initiative and workstreams Initiative 13.
Elaborate the Wise Tourism Index
1. Define Cyprus’ Wise Tourism Index 2. Measure and publish the Wise Tourism Index results 3. Provide technical support for local authorities for continuous sustainability improvement 37
CYPRUS TOURISM STRATEGY
Example: Initiative and workstreams Initiative 17.
Reengineer the legal and regulatory framework
1. Elaboration of the Cyprus Tourism Law
2. Simplification of the current regulatory framework 3. Create Public Electronic Platform for legal matters 4. Create a One-Stop Shop/fast track for administrative processes 5. Facilitate regularisation of the unlicensed accommodation offer 38
CYPRUS TOURISM STRATEGY
Example: Initiative and workstreams Initiative 22.
Launch performance monitor
1. Determine sector’s performance metrics
2. Launch a Tourism Intelligence Platform
39
CYPRUS TOURISM STRATEGY
Table of content 2 Formulating
Vision
External Analysis
Internal Analysis
the Strategy
Key issues to be tackled
the Strategy
The Core Strategy
3 Planning
the Strategy
B. Score Card Objectives, KPI´s & Initiatives Separate action plans
Strategy Direction Statements
Growth & territorial models
4 Implementing the Strategy
Implementation framework Investments, budget and impacts Social and economic impacts
Roadmaps and critical actions
Achieving the Vision
1 Preparing
CYPRUS TOURISM STRATEGY
Actions
Work streams
The 14 main actions of the Quality Plan
Set up the Cyprus Quality Labels (CQL) Management Unit
1. Reach an agreement on the organisational structure for the CQL Unit 2. Staffing the CQL Unit
Develop the Cyprus Quality Label System
3. Define the labels (concepts plus visuals) 4. Define the quality standards and the rules of the game for the CQL
Deploy the CQL System
5. Develop the EPlatform to support the CQL System 6. Provide training to the team of advisors 7. Organise public launching event of the CQL system 8. Conduct initial assessments of applicants
Market and promote the CQL in Cyprus and the markets
9. Prepare and implement a CQL Marketing Plan 10. Develop rich and engaging B2C online marketing content 11. Audit periodically the Cyprus brand performance
Implement a strong monitoring and enforcement system
12. Control compliance with the quality standards on a regular basis 13. Continuously monitor customer satisfaction 14. Launch the Quality Excellence Awards
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CYPRUS TOURISM STRATEGY
Actions
Work streams
The 13 main actions of the Branding Plan
Implement the branding system
1. Achieve a general agreement on the proposed brand identity and its positioning 2. Approve a tourism brand architecture encompassing product and regional brands and labels
Align the new tourist brand visual and baseline with the Strategy
3. Commission the design of the new brand visual and baseline 4. Test the proposals of baseline / brand visual and get the official approval 5. Implement a strong launching of the new brand
Develop an integrated 360º brand communication system
6. Commission and implement Cyprus’ ‘Big idea’ 7. Launch Media Relations Special Programme 8. Develop branded content 9. Launch targeted online advertising campaigns 10. Perform co-op branding actions
Monitor the brand implementation and its performance
11. Appoint a Brand Manager with clear responsibilities and functions 12. Create the ‘Brand Committee’ 13. Audit periodically the Cyprus brand performance
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CYPRUS TOURISM STRATEGY
Work streams
Create the PPS Product Club and a PPS Label System
Actions
The 11 main actions of the Seasonality Plan
1. Create the Pre and Post Season Product Club 2. Design and implement a PPS Label System
Develop attractive products for the PPS 3. Identify and prioritise product/ segments with PPS potential 4. Develop marketable PPS experiences 5. Support the organisation of PPS events
Develop a specific PPS communicatio n strategy 6. Communicate PPS advantages through PR and targeted advertising 7. Develop an attractive website to market the PPS offering
Develop and implement a specific PPS sales system 8. Provide training for PPS Product Club members 9. Develop a “push� attitude towards the travel trade and airlines 10. Foster direct online sale of PPS products
Prepare and implement the Winter Season strategy 10. Prepare and test the Winter Season strategy in one cluster 11. Implement the tested Winter Season on all clusters with potential
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CYPRUS TOURISM STRATEGY
Table of content 2 Formulating
Vision
External Analysis
Internal Analysis
the Strategy
Key issues to be tackled
the Strategy
The Core Strategy
3 Planning
the Strategy
B. Score Card Objectives, KPI´s & Initiatives Separate action plans
Strategy Direction Statements
Growth & territorial models
4 Implementing the Strategy
Implementation framework Investments, budget and impacts Social and economic impacts
Roadmaps and critical actions
Achieving the Vision
1 Preparing
CYPRUS TOURISM STRATEGY
5 Planning tools for a sustainable tourism planning A
B
C
Tourism sites & attractions
Clusters
Resorts
D
Touristic zones of National Interestยน
E
Itineraries
Touristic Zones of National Interest are large areas (200 -2000 hectares) that hold various resorts that share big infrastructures and equipment. These areas form tourism destinations by themselves and usually have more than 6,000 keys.
1
45
CYPRUS TOURISM STRATEGY
Integrated spatial plan guiding principles 1
Recognise the need for action
2
Support the elements of tourism that require special care
3
Establish binding development objectives
3
Retain tight control over protected lands - follow a pro-active policy towards its management and use;
4
Strengthen agriculture and forestry through tourism, and accept them as partners in the tourism development process;
5
Maintain and preserve cultural traditions
6
Integrate the knowledge of tourism industry stakeholders into the decisionmaking and management system 46
CYPRUS TOURISM STRATEGY
Development areas and clusters Development areas Clusters
Nicosia Paralimni Marathasa
Polis
Troodos
Kathikas
Omodos
Larnaca
Ayia Napa
Zygi
Pafos
Mazotos Pissouri
Limassol
47
CYPRUS TOURISM STRATEGY
Example: Eastern region > Protaras - Pernera (Paralimni) Vision 2030 Paralimni will be the most sought after family tourism cluster in Cyprus Customer value proposition A cluster of resorts offering the best quality family sun, beach experience in Cyprus, complemented by adjacency to nature and exceptional marine experiences Market positioning A 4-star ‘sun, sea and family entertainment’ destination Target International Domestic Key tourist activities and experiences
Sun & Sea
Potential development areas
Multigenerational
Water sports
Sailing / boating
Diving
48
CYPRUS TOURISM STRATEGY
Total investment by typology 2017-2030 (Million Euro)
Note: The numbers have been rounded up, so slight differences may be found. 49
CYPRUS TOURISM STRATEGY
Contribution to tourism growth to the GDP(Euro Million) 30 25
GDP 17.421 Mill €
GDP 19.953 Mill €
20
16% 15
GDP 22.856 Mill €
20%
GDP 24.338 Mill € 28%
15% 3.476
13%
10
5 0 2015
2020
2025
2030
Note: GDP annual increase of 2,3%
50
CYPRUS TOURISM STRATEGY
Contribution of tourism growth to employment Total tourism employment (direct and indirect) by 2030
61.456
63.831
69.098
49.500
24.000 2015
39.941
43.107
50.130
2020
2025
2030
Direct tourism employment
Indirect tourism employment
Source: THR projections * Does not include the direct and indirect required construction employment related with investment 51
CYPRUS TOURISM STRATEGY
Value Gap in Direct Tourism production 2030 - 0% vs. 100% “Wise growth” strategy implementation -
Value Gap
Factors
(Million Euro)
%
Increase of tourists
4.911
18
Longer Average stay
5.962
22
16.416
60
27.285
100
Greater tourist Total
Daily
Expenditure
per
52
CYPRUS TOURISM STRATEGY
Cyprus’ tourism mission
Offer the world memorable tourism experiences and improve the quality of life of the Cypriots
53