Slide1: HOSPITALITY AND TOURISM ADVISORY SERVICES e Introduction and Methodology The Ministry of Tourism Government of Israel November 2006 Quality in Everything We Do


Agenda: Introduction The Approach The Methodology Agenda


Introduction: Introduction


Introduction: Introduction A Fully Integrated Team Fully integrated advisory team; three groups representing the best in class in their respective fields Unparalleled team in terms of: Global presence and resources International and local knowledge International experience in tourism development and marketing Technical and process expertise Proprietary models and unique tourism databases Comprehensiveness of services offered Capacity to serve the world’s largest and most demanding clients


The Research Team: A Fully Integrated Team The advisory team represents the best in class in their respective fields Project management and infrastructure assessment Policy, economic analysis and tracking & forecasting systems Source markets and future marketing strategy The Research Team


The Research Team: Ernst & Young, LLP – Project Leader World’s largest professional services firm: 106,000 employees in 140 countries Global Real Estate, Hospitality and Construction practice with 3,500 employees in more than 25 countries serving more than 4,000 clients The Hospitality and Tourism Advisory Services group: Advisor to the leading organizations in the hospitality industry Knowledge leader in hospitality, tourism and leisure Extensive international experience Expertise in hospitality & tourism infrastructure development The Research Team


The Research Team: The Research Team Ernst & Young, LLP – Hospitality & Tourism Advisory Services Extensive international experience in: Hotels Resorts Mixed-Use Developments Convention Centers Amusement Parks Sport Facilities Museums Other Leisure Real Estate


The Research Team: Track global travel demand by origin and destination Monitor and forecast tourism for 163 country markets Conduct market strategy, investment policy, and tourism economic development analysis for destinations around the world. The Research Team Global Insight – Travel & Tourism Advisory


The Research Team: World Travel & Tourism Council NYC and Company Intercontinental Hotels Group Kerzner International Hilton Hotels Abu Dhabi Tourism Authority Travel Industry Association of America (TIA) US Office of Travel & Tourism Industries Hong Kong Tourist Board Ontario Tourism Commission Canadian Tourism Commission Singapore Tourism Board Visit Britain Dubai Tourism and Commerce Marketing Various Resort Developers American Express Orlando CVB Irish Tourism Board Bahamas Ministry of Tourism Turkish Association of Travel Agents The Research Team Short List of Global Insight Clients


The Research Team : The Research Team IPK International Leading international tourism consulting group Specialist in tourism research and tourism marketing for 35 years Network of institutes and tourism consultants in all European countries, North America, South America, Africa and Asia/Pacific Highly skilled researchers and statisticians having vast experience in conducting quantitative and qualitative surveys around the globe More than 1,000 tourism studies around the globe successfully completed Owner of the World Travel Monitor®, the world’s most comprehensive tourism data bank on the European, Asian and American outbound travel behavior


The Research Team: The Research Team IPK International Public Sector Clients: Ministries, Tourist Boards, Other public organizations from more than 40 countries worldwide Private Sector Clients: Hotel Companies Airlines Tour Operators Theme Parks and Other Attractions Numerous other international clients


The Approach: The Approach


Holistic and Results-Driven Approach: Holistic and Results-Driven Approach Analysis and Practical Strategies Supply - Hospitality & Tourism Infrastructure Aviation and Investment Policy Demand - Source Markets: Demographics, Attributes, Attitudes & Preferences


The Primary Research: Research in Fifteen Countries Interviews with 104 tourism industry stakeholders in Israel 135 site inspections of tourism infrastructure 500,000 annual interviews for World Travel Monitor survey Survey interviews with a total of 8,400 respondents in 8 countries 18 focus groups in 8 countries 51 interviews with international tour operators in 8 countries The Primary Research


The main goal is…To substantially grow inbound tourism and to establish tourism as a leading engine of growth for the Israeli economy: The main goal is… To substantially grow inbound tourism and to establish tourism as a leading engine of growth for the Israeli economy


The main obstacle…Perception versus Reality: The main obstacle… Perception versus Reality


Israel – Current Perception: Israel – Current Perception


Israel – Current Reality: Israel – Current Reality


The Methodology for the Research of the International Outbound Markets: The Methodology for the Research of the International Outbound Markets


Slide20: Phase 1: Research of 17 International Key Markets based on IPK’s World Travel Monitor® Phase 2: Further In-Depth Research of the 8 most promising Markets Based on: Qualitative Research  Focus Groups Quantitative Research  Population Surveys Trade Research  Tour Operator Interviews Methodology


Methodology of Phase 1: Methodology of Phase 1 Research of 17 International Key Markets the most important international outbound markets worldwide the most important markets for Israel at present markets having a high share of Jewish population and worldwide coverage: Europe (West and East) America, Asia The selection of the 17 outbound key markets was made according to the following criteria: Consideration of


Slide22: America USA Canada Western-Europe UK Germany France Italy The Nordic Countries The Netherlands Switzerland Eastern-Europe Russia Poland Hungary Asia China India Fulfilling these criteria, the following 17 int’l markets were selected (in accordance with the Tourism Ministry) These 17 markets represent 60% of all outbound trips worldwide 75% of the outbound trips to Israel 90% of the Jews living in Diaspora


Slide23: The 17 Int’l Key Markets were surveyed / analyzed regarding: the general outbound travel behavior the travel behavior to Israel and as a benchmark the travel to the most important competitors (Turkey, Greece, Italy, Egypt) Method and Database: IPK’s World Travel Monitor®


World Travel Monitor® Facts: World Travel Monitor® Facts The World Travel Monitor® is an annual study surveying the outbound travel volume and travel behavior in all European and all important American and Asian countries, since 1988 representative of the population in each country interviewing more than 500,000 consumers per year (15 years and older) carried out via telephone interviews (CATI system) applying the same questionnaire / method in all countries


World Travel Monitor® Facts: World Travel Monitor® Facts The World Travel Monitor® is the sole and largest tourism information databank worldwide providing comparable tourism data on European, American and Asian outbound travel behavior Clients from the public and private sector are, among others: - The European Travel Commission (ETC) - The UNWTO - Numerous tourism destinations worldwide (Spain, Greece, Italy, Mexico, Brazil, etc.) - Tour operators (TUI, Thomas Cook, Kuoni, etc.) - Consultancies (McKinsey, Boston Consulting, etc.)


Methodology of Phase 2: Methodology of Phase 2 In-Depth Research of the 8 Most Promising Key Markets 8 markets offering the best opportunities for Israel were identified out of the 17 international Key Markets Criteria for the selection (among others): Size of the market / market prospects Affinity towards Southeast Mediterranean destinations / Israel Affinity towards specific products / holiday types Religious affiliation Spending behavior / share of high spenders etc.


Slide27: America US Western-Europe UK Germany France Italy Sweden Eastern-Europe Russia Asia China Based on these Criteria the selected 8 Markets were:


Slide28: In-Depth Research Program for each of these 8 Markets Qualitative Research 2 Focus Groups per country In the US and UK 3 Focus Groups each


Slide29: Method of Focus Groups Per group 8-10 participants (consumers) Men and women (approx. 50% each) Different age groups (25-65 years old) Middle and higher education and income classes Religious affiliation (except for China): 2-3 participants practicing Christians / Evangelicals at least one representative of the Jewish population


Slide30: Method of Focus Groups All participants with travel experience to the Southeast Mediterranean (especially Egypt, Greece, Turkey) All participants interested in a trip to Israel / at least 2–3 persons with travel experience to Israel Selection / identification of participants: in the scope of pre-screening / pre-interviews


Slide31: Conduction of Focus Groups The Focus Groups were conducted by institutes specialized in qualitative research (ICC/ESOMAR members) in the individual countries (under the guidance of IPK) Each Group was guided and analyzed by an expert / psychologist specialized in qualitative research All Focus Groups were conducted according to a guideline of topics


Slide32: Focus Group Tasks Determination of topics such as awareness / perception of Israel factors of attraction factors of rejection assessment of the different products / offers / holiday types strengths / weaknesses of the offer expectations towards the product comparison with other destinations / competitors etc. as well as a test of TV commercials


Slide33: 2. Quantitative Research in each of the 8 markets In-Depth Research Program for the 8 Top Markets


Slide34: Sample of the Population Survey Only persons with outbound tourism experience last 5 years and / or intention next 5 years. Sub-sample of Jewish / religious people, respectively Evangelicals (depending on the countries’ predominant religious group) The sample (in each of the 8 countries) was determined by a pre-screening. The appropriate pre-screening questions were asked in a sample being representative of the population (according sex, age, regional distribution, etc.).


Slide35: Population Surveys At least 1,000 interviews per market Telephone interviews (CATI method: Computer Assisted Telephone Interviews) in all markets Random selection of the interviewees Partner institutes of IPK, specialized in quantitative population surveys in the respective countries All institutes following ICC / ESOMAR standards / codex


Slide36: Task of the Population Survey image of Israel future interest potential for Israel interest in different holiday products factors of attraction / motives of Israel relevance of religious motives price image travel season accommodation preference booking preference future target groups Specific questions with regard to Israel were asked, such as


Slide37: Trade Research In total for all 8 markets Per market 5 – 8 interviews In-Depth Research Program for the Top 8 Markets


Slide38: Method of the Trade Research In accordance with the client, important Tour Operators offering / not offering Israel were chosen for each market:


Slide39: The Tour Operator Interviews were conducted via telephone with senior managers responsible for Israel / the Southeast Mediterranean with the help of a guideline / questionnaire


Slide40: Task of the Tour Operator Survey image of Israel in the tour operator’s view strengths / weaknesses of Israel positioning of Israel vs. competitor destinations interest in including / extending the Israel offer expectation regarding sales support aviation and lodging etc. Determination of topics such as


Slide41: Method & Data Pool for the International Markets All in all a very comprehensive data pool with a high validity and reliability allowing the development of secured marketing strategies for Israel in the international markets