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Target Market: Brazil TARGET MARKET: BRAZIL MARKETING STRATEGIES FOR TOURISM DESTINATIONS A COMPETITIVE ANALYSIS Marketing Strategies For Tourism Destinations A Competitive Analysis Target Market - Brazil A report produced for European Travel Commission (ETC) by Tourism Development International Brussels, 2014 Marketing Strategies for Tourism Destinations. Target market: BRAZIL Published and printed by: European Travel Commission Rue du Marché aux Herbes, 61 1000 Brussels, Belgium Website: www.etc-corporate.org Email: [email protected] This report was compiled and edited by: Tourism Development International on behalf of the European Travel Commission. The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the European Travel Commission concerning the legal status of any country, territory, city or area, or of its authorities or concerning the delimitations of its frontiers or bound- aries. Cover photo: Christ, symbol of Rio de Janeiro, standing on top of Corcovado Hill, overlooking Guanabara Bay and Sugarloaf, Rio de Janeiro, Brazil; Copyright: T photography. Copyright © 2014 European Travel Commission. Marketing Strategies for Tourism Destinations. Target market: BRAZIL Contents Foreword i Introduction 1 a. Defining the Competitive Environment for Destination Europe 2 b. Destinations in the Global Market Place: a Comparative Analysis 2 Summary of Brazil Market Study 10 1. The Brazil Outbound Market 15 1.1. A High Spending Market 15 1.2. Brazilian Tourism to Europe 17 1.3. Characteristics of the Brazilian Traveller 19 1.4. Drivers of Growth 21 1.5. Successful Destination Strategies 22 2. Travel Destinations in the Brazilian Market 24 2.1. Visa Regimes 24 2.2. Air Connections 26 2.3. Political, Economic and Socio-Cultural Links 29 2.4. Consumer Assessment (TripAdvisor) 32 3. Profile of Europe’s Main Competitors in Brazil 34 3.1. Destination Marketing Organisations 34 3.2. The Australian Tourism Sector 35 3.3. The Mexican Tourism Sector 40 3.4. The Russian Federation Tourism Sector 46 3.5. The United States of America Tourism Sector 50 3.6. Conclusions 4. Marketing Strategy and Activities of Brand USA in Brazil 57 4.1. Brand USA’s Marketing and Promotional Activities in Brazil 57 4.2. Brand USA’s Success in Brazil 60 5. Key Factors in Destination Marketing in Brazil 62 5.1. Market Perceptions 62 5.2. Marketing Performance and Opportunities 63 Appendices Appendix 1 European and Competing Destinations WET TTCI and 66 Bloom Country Brand Rankings Appendix 2 Weekly City-to-City Flights from Main Brazilian Centres 69 Appendix 3 TripAdvisor Ratings 71 Appendix 4 Bibliography and References 73 Marketing Strategies for Tourism Destinations. Target market: BRAZIL Acknowledgments This report was prepared by Peter Mac Nulty and Robert Cleverdon of Tourism Development International on commission to the European Travel Commission (ETC), and was carried out under the supervision of Ms Valeria Croce, Head, Research and Development Department at ETC. The report is part of a series of fact-finding reports on the tourism strategy de- veloped by destinations competing with Europe in select long-haul markets. The project was realised as part of the European Commission and ETC joint initiative “Destination Europe 2020”. We would like to acknowledge the support and contributions of the many ETC members, marketing organisations and tour operators associations who contrib- uted to the realisation of this report. We also gratefully acknowledge the support of ETC partners, who committedly contributed to the realisation of this project. A special note of thanks to Mr Charlie Ballard, Director of Advertising Research at TripAdvisor, Mr Xu Jing, Regional Director for Asia and the Pacific at UNWTO, and Mr Daniel Velasco, Consultant at Amadeus Travel Intelligence Unit, for their contributions. Marketing Strategies for Tourism Destinations. Target market: BRAZIL Foreword In an increasingly vibrant landscape, marked by new players, technological inno- vation and rapidly changing consumers, the need arises for European destina- tions to closely monitor others’ effort to win market shares in the global tourism market. This compilation of best practice examples in tourism and promotion strategies is meant to provide insights relevant to ETC and its member countries through a better understanding of the environment in which they operate. This series of reports provides insights into the strategic vision and the operation- al actions tourism destinations worldwide are developing to attract an increas- ing number of visitors from the most promising source markets. This fact-finding research offers a bird’s-eye view of the competitive environment, and a portrait of the tourism strategy and marketing activities of competing destinations. Ref- erences to official documents and publicly available reports facilitate access to detailed information, for those interested in achieving a higher level of knowl- edge. For Europe’s strongest competitors, portraits are enriched with first-hand information gathered through personal interviews with NTOs marketing directors, representatives of the travel trade and experts. The common structure of reports facilitates cross-market comparisons. Key re- sults are synthesised in a highly visual executive summary, conceived for dis- semination to the public at large. We trust these reports will become for ETC and its members an important tool to identify key opportunities and challenges, and to strengthen their comparative advantage in the global tourism market. Executive Unit European Travel Commission i Marketing Strategies for Tourism Destinations. Target market: BRAZIL Introduction This report’s aim is to collect meaningful knowledge about the tourism strategy of Defining the destinations competing with destinations in Europe in select long-haul markets. competitive This study is part of a series of publications, which offer an overview of the en- environment for vironment, in which European tourism destinations operate, and a profile of the Destination Europe tourism strategy and marketing activities of competing destinations. A listing of official documents, publicly available reports and media features is provided in an appendix and through the footnotes to permit more detailed examination of the information presented and issues raised. Each report also provides first-hand in- formation on a selection of competing destinations, gathered through interviews with NTOs’ marketing directors, travel trade and experts. This project focuses on countries competing with European destinations in high potential long-haul markets, namely Brazil, Canada, China, Japan, Russia and the United States. In this analysis, Europe is defined as the 33 countries which are members of the European Travel Commission plus France, the Netherlands and the United Kingdom. The analysis followed a three step approach. The first step was to identify the key markets for Europe and the primary desti- nations competing with Europe in those markets. These markets are presented in Figure 1. The second step consisted of assessing strengths and weaknesses of destina- tions, which are significant competitors to Europe in the six target markets. The assessment has been based on the following indicators: • the World Economic Forum Travel and Tourism Competitive Index (WEF TTCI), • travel trade interviews and expert opinion, • visa regimes and other visitor entry requirements, • air connectivity and capacity, • price competitiveness, • political, economic and socio-cultural links, • destination tourism development policy, • destination tourism marketing strategy. The third step consisted of identifying those destinations which are the strongest competitors for Europe in each market, i.e. destinations which attract significant volumes of travellers and are actively investing in increasing their share in the market. A detailed profile of the organisations in charge of promoting inbound tourism to these destinations has been compiled. Information about the strongest competitors has been collected by the means of personal interviews as well as from secondary sources. 1 Marketing Strategies for Tourism Destinations. Target market: BRAZIL a. Defining the Competitive Environment for Destination Europe Experts from the European Travel Commission (ETC) Executive Unit, Market Intelligence Committee and Operation Groups, as well as experts from Tourism Development International (TDI), were involved in a two-stage process to define the competitive environment, in which European destinations operate. In the initial stage, those long-haul markets which show the best prospects for Europe as a tourism destination were identified. Based on a compound analysis of the relative importance of, and growth prospects for a large number of mar- kets, six were identified as priorities for Destination Europe. The experts were then asked to list countries which are actively targeting those markets as tourism destinations. These competing destinations are defined as countries which are currently investing in tourism promotion and which already receive considerable volumes of tourists from the selected markets. The outcome of experts’ evaluation of the competitive environment is reported in Figure 1. Figure 1: Market: Destination Pairings Competitor Markets 1 2 3 4 5 6 7 USA Mexico Australia Russian Brazil Federation USA /USA Mexico China South Canada large cities Africa USA Australia Russian Rep of Thailand Malaysia New China
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