TOURISM PRODUCT PRIORITIZATION SURVEY RESULTS

Key Takeaways: has both depth (multiple types of appeal per destination) and breadth (many potential destinations) for alternative tourism development:

• 44 different places were entered by respondents as high-potential areas; • 15 different types of tourism were entered by respondents (Eco, cultural, archaeology/history, medical/health, touring, MICE, beach, sports, hunting, events, equestrian, religious, cruises, hot springs, wine). Many sun & sand destinations have multiple areas of alternative tourism appeal to develop, providing confirmation of our strategy to: 1) Draw beach tourists to alternative tourism products; 2) Support beach hotels to transition a portion of business from mass to alternative within their own product offering and positioning. Progress towards workplan goals: The results of this survey are the first step in a four-step process to select areas for development of alternative tourism products: 1) Through local private sector, identify a broad list of highest-potential areas for development. 2) Apply internal selection criterion to shortlist destinations with highest “ROI” potential 3) Private sector feedback from source markets – what do the people selling tourism products in Tunisia’s major markets think they can sell (familiarization trips). 4) Final selection. Given our inability to bring people to Tunisia in the short-term, we are looking into alternative methods of acquiring private sector feedback from source markets. TOURISM PRODUCT PRIORITIZATION SURVEY RESULTS Survey conducted in March 2020 Sample size: 122

In March 2020, JOBS launched a survey to gather industry feedback on geographic areas and tourism products to develop. The aim of the survey is to identify a list of the best products and areas for potential development, congruent with JOBS’ strategy to promote alternative tourism. JOBS’ approach to bringing tourists to new places has two parts: 1- Attracting new tourists from non-traditional segments (cultural, historical, adventure, wellness, etc.). 2- Pull existing tourists from the sun & sand segment to new products and experiences inland. Tunisia boasts a diversified product offering across the country. JOBS will choose up to 3 geographic areas for targeted product development. With other donor agencies working in other areas of the country, also supporting diversification of the product offering, the overall impact will be larger. With the help of trade associations, JOBS developed a survey tool that was sent to around 2000 tourism businesses spread around the country. 122 responses were received. Some respondents represent multiple business types, for example a travel agent who owns a hotel and provides transportation services: Type of Business Number Percent Inbound Travel Agencies 71 58% Tour Guides 55 45% Lodging Facilities 17 14% Transport Companies 11 9% Experience/Service Provider 6 5%

The large percentage of travel agents and tour guides represent valuable feedback in selecting products and experiences to develop, as these companies are at the front of the promotional/sales cycle. Below is a detailed analysis of the questions and responses.

Q1: – Type d’entreprise touristique (Type of business)

TUNISIA HAS A HIGHLY DIVERSIFIED PRODUCT OFFERING When asked to “name the top three areas they think should be further developed as tourism destinations”, the Sahara, //Medina and received the highest number of votes (13 and 14 respectively). The most selected destinations are inland areas offering alternative tourism experiences, except for Tabarka, which offers untapped potential across adventure, wellness, and eco- tourism experiences. Respondents also included 43 additional sites or areas they nominated as destinations with high potential. This testifies to the huge potential available in Tunisia.

Top 10 Destinations/Geographic Areas

Oudhna South/Southwest Sahara Tunis/Carthage/Medina Tabarka/NW

0 2 4 6 8 10 12 14 16 EVEN BEACH DESTINATIONS OFFER UNTAPPED ALTERNATIVE AND DIVERSIFIED TOURISM PRODUCTS When JOBS conducted a site visit to Djerba in February 2020, one of the most visited beach destinations in Tunisia, discussions with representatives of the tourism industry there revealed that no more than 40% of overnight visitors actually leave their hotels to explore the nearby attractions.

Q3 : Pour chacune des destinations balnéaires suivantes, identifies les deux meilleures caractéristiques touristiques

Further discussions with travel agencies, tour guides and hotel owners revealed similar findings. With 60% remaining resorts, there is an opportunity to promote alterative tourism products within the beach destination itself. When asked about “the appeal and attractiveness of top beach destinations to offer additional alternative products and experiences”, all respondents answered favorably.

Further analysis of the responses revealed the following opportunities in certain beach destinations that scored 75% or more in terms of product/segment appeal.

1- Tabarka scored very high for eco/adventure potential (83%). The potential in eco/adventure is significant. It is one of the fastest growing segments, directly engages local communities, and promotes environmental sustainability. Both GIZ and Swiss Contact are also planning development work in this area. Adventure and nature travel is a full- fledged industry, worth over $683 billion with 21% CAGR since 2012 according to the Adventure Travel Trade Association. The typical adventure traveler has an average age of 52, is well-educated, and has a high disposable income. However, this type of travel includes both older travelers who prefer softer adventure and immersive cultural experiences, as well as millennials who seek local, more personal adventure experiences. 90% of adventure travel businesses are locally owned small businesses employing fewer than ten staff. According to proprietary research conducted by the Twenty31 tourism consultancy, for trips involving adventure activities, adventure is cited by 41% as the main reason for the trip. The remaining 59% cite other reasons such as visits with friends or family, culture, beach visits, or business travel. Notably, over 40% also sought to combine adventure and cultural experiences. Twenty31’s research also found that adventure travelers prefer the following types of experiences (see table below).

Among adventure travelers, nearly a third seek backpacking, hiking, camping and trekking experiences. Less than 20% seek the other activities indicated in this chart. The overall message is that adventure travel spans a wide range of activities. Among many activities, the ATTA Adventure Pulse, a survey of leading Adventure Tour Operators in 2017, determined that the most demanded outdoor activities are hiking and bicycling. Regarding hiking, the survey found strong appeal across a broad age range (25-65 years), especially among professionals and affluent families. Hiking has greater appeal as a soft adventure combined with cultural visits and sightseeing. The health benefits of hiking and lower carbon footprint are also appealing. Bicycling appeals to a younger age demographic (25-45 years) but it is seeing growing demand among the 45-65 age group. Road cycling or touring could be developed in Ras Al Khaimah for the winter months. The roads are generally good for day cycling and the landscape is interesting and relatively flat. The distances travelled daily by road cycling tourists are gradually increasing, to around 48km (29.8 miles), with a break during the hottest parts of the day to visit cultural attractions and eat. Travel brands are responding to consumer demand by developing services that are more adventurous, more personalized, and more attuned to local culture. Many outdoor activities which used to be niche are becoming mainstream as tourism businesses add them to their product portfolios and provide specialist equipment and logistics support. Advances in technology (Adventure Tech) have created new recreational opportunities such as paragliding and bungee jumping.

2- There is almost universal agreement among respondents that Ysamine/Hammamet has high wellness product appeal, which can be developed beyond the standard Thalasso treatments. Responses for Sousse and Monastir also indicate wellness potential in these areas. Tunisia has a reputation as a top Thalasso destination, and proximity to Europe, the top Thalasso market. Tunisia, and Hammamet in particular, can tap into the $639 billion wellness tourism industry. According to the Global Wellness Institute (GWI), world travelers made 830 million wellness trips in 2017, 139 million more than in 2015 – representing 17% of all tourism revenues (or 1 in 6 dollars spent). Projected to grow at 7.5% annually (nearly double the rate of overall tourism growth) tourism is projected to be a $919 billion-dollar industry with 1.2 billion wellness travelers worldwide by 2030. Previously driven and dominated by spa resorts for the affluent, wellness travel has broadened considerably. According to the UNWTO, cultural traditions, natural assets, and heritage are important components to wellness tourism. The three destinations of Hammamet, Sousse and Monastir scored medium and high on their cultural heritage appeal (35%, 60%, and 56% respectively), adding to their potential as attractive wellness destinations. Key results from the 2020 Virtuoso Wellness Community survey indicate the top wellness travel activities as: 1) meditation and mindfulness, 2) spa treatments, 3) yoga, 4) healthy eating, and 5) outdoor adventures. In addition to the above, other types of experiences that a wellness traveler would find attractive include: • Comprehensive themed programs (stress reduction, reboot, weight loss, etc.) • Indigenous healing experiences (bathing rituals, healing herbs, traditional healers) • Healthy food experiences (food, cooking classes, agri-tourism, etc.). • Creative arts and expression (dance, painting, poetry, storytelling) • Hot springs & water-based activities • Self-development activities (e.g. trainings, workshops, retreats, classes on leadership, resilience, overcoming burnout, overcoming grief, etc.) • Visiting cultural and historical attractions • Community-based experiences (creative expression, cooking classes, etc.)

Wellness tourism may also include attending festivals and celebrations. Some examples include Global Wellness Day, Worldwide Wellness Weekend, and yoga festivals.

3- Dejrba stood out on both wellness and cultural appeal, in addition to being a top beach destination. During the site visit to Djerba mentioned above, the stakeholders we met there agreed that there is untapped potential for culturally immersive experiences. Cultural heritage tourism sustains and enhances the character of a destination – its environment, culture, aesthetics, heritage and the well- being of its residents. Successfully presented, cultural tourism acquaints tourists with local culture and traditions, and offers them immersive experiences they cannot find elsewhere. According to the UNWTO, global cultural tourism is forecast to increase by 15% in the coming few years.

As the research summarized below shows, visitors want to absorb heritage and culture through holiday experiences. The experience needs to be authentic – particularly for those who feel heritage and culture are important when choosing a holiday.

Cultural heritage travelers crave stories – experiencing the stories of the past and stories of present- day cultures that are different from their own. They seek authentic experiences based on the stories, history and heritage, which is why heritage centers, museums, archaeological and historic sites and traditional markets are important to them. Local culture, especially cuisine and engaging with local people, is also very important to them.

A UNWTO report on Tourism and Cultural Synergies found that 69 out of 156-member states claimed that 47% of their international arrivals were cultural tourists. Notably, the report also found that tourists themselves have become 90% 82% co-creators of their own experiences. 81% 78% The U.S. Department of Commerce 80% 72% 70% 69% 68% 67% found similar high interest among 70% international visitors to the US – 60% many of whom came from Western 50% Europe (Tunisia’s key markets) – 40% with 46% visiting historic locations, 30% half visiting museums, 40% visiting 20% small towns and the countryside, and 10% 28% visiting cultural or ethnic heritage sites. Further reinforcing 0% 1 research on experiential travel is the chart showing VisitEngland’s Local markets Local food and drink Research, which presents the main Places of natural beauty Coastal towns experiences of visitors during cultural trips Learning about history Interesting architecture Castles Gardens and parks Through our discussions with GIZ, they informed us that they are planning to develop a standalone destination marketing strategy for Djerba. While it is not advisable to develop this strategy in advance of the wider destination marketing strategy JOBS is planning to develop with the ONTT, this can support Tunisia to become known as a more diversified destination. Pending further discussion with GIZ, Djerba is a potential destination where JOBS and GIZ can collaborate. also indexed high on its potential cultural heritage appeal.

CULTURAL HERITAGE AND ECO/ADVENTURE ARE PRIMARY VALUE PROPOSITIONS ACROSS THE COUNTRY In the last question, we asked respondents to identify “the value propositions of 10 pre- determined inland and non-beach destinations”. A notable result is the agreement on the cultural heritage component across all the 10 destinations as a primary value proposition, followed by archaeology/history, and eco/adventure. This aligns with our strategy to position and promote the destination as an attractive destination for culture and adventure travelers. Q4 Dans les endroits suivants, veuillez choisir les trois caractéristiques les plus attrayantes pour les clients de l’hotel qui souhaitent faire des excursions

The breakdown of answers by geographic area and value position allows us to shortlist interior areas for development. As mentioned earlier, additional filters will be applied to pick the inland destinations, including site visits and meetings with local community stakeholders, further discussions with donor agencies to identify potential synergies to complement work and avoid duplications, a rapid product audit and gap analysis to identify the readiness of the of the destination to achieve quick results, and access to key beach destinations.

Based on our strategy, among the destinations proposed in the question, the 5 areas to shortlist for consideration are: Tozeur, , Le Kef, and Matmata.

AREA CULTURE ECO/ADV WELLNESS HISTORY MICE AVERAGE Tozeur 83.96% 74.53% 22.64% 45.28% 41.51% 54% Tataouine 96.04% 69.31% 1.98% 68.32% 11.88% 50% Le Kef 89.00% 68.00% 2.00% 83.00% 4.00% 49% Siliana 81.05% 73.68% 2.11% 76.84% 4.21% 48% Matmata 92.00% 68.00% 1.00% 61.00% 14.00% 47% 86.14% 49.50% 0.99% 91.09% 5.94% 47% 80.41% 77.32% 13.40% 36.08% 20.62% 46% 94.12% 23.53% 2.94% 80.39% 26.47% 45% Tamarza 80.00% 83.00% 5.00% 47.00% 10.00% 45% 44.76% 82.86% 44.76% 35.24% 17.14% 45%