The competitiveness of the Greek Travel
& Tourism sector – a point of view
14th Tourism & Development Conference
Vassilis Kafatos, 20 October 2015
© 2015 Deloitte Business Solutions Hadjipavlou Sofianos & Cambanis S.A.
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Contents
Key questions
The WEF Travel & Tourism (T&T) Competitive Index
The competitive position of Greece in the T&T Sector
Strengths and weaknesses of the Greek T&T sector
Strategies for improving the competitive position of Greece in the T&T sector
Key trends shaping the global T&T sector
© 2015 Deloitte Business Solutions Hadjipavlou Sofianos & Cambanis S.A.
1
Key questions
Enhancing the competitiveness of the Greek Travel & Tourism sector is a
multidimensional and complex task. Let’s start by asking the following
questions…
1. What is the current
competitive position of
Greece in the T&T
Sector?
© 2015 Deloitte Business Solutions Hadjipavlou Sofianos & Cambanis S.A.
2. Where do Greece’s
strengths and
weaknesses lie in the
T&T sector?
3. What strategies
can Greece follow to
improve its
competitive position in
the T&T sector?
2
Framework for assessing Greece’s current position
The Travel & Tourism Competitiveness Index (TTCI) of the World Economic
Forum.
93
Travel & Tourism Competitiveness Index
The TTCI is a comprehensive
strategic tool for measuring
“the set of factors and
policies that enable the
sustainable development of
the Travel & Tourism sector,
which in turn, contributes to
the development and
competitiveness of a
country.” Deloitte is a
partner of the WEF TTCI.
43
23
Enabling
Environment
15
17
T&T Policy
and Enabling
Conditions
6
Business
Environment
5
6
3
6
7
4
4
5
Air Transport
Infrastructure
International
Openness
Natural Resources
5
Ground and Port
Infrastructure
Cultural Resources
and Business Travel
4
Price
Competitiveness
Health & Hygiene
Natural and
Cultural
Resources
Infrastructure
Prioritization of
Travel & Tourism
Safety and Security
10
Tourist Service
Infrastructure
10
Qualification of the
Labour Force
Environmental
Sustainability
5
Labour Market
8
ICT Readiness
1
Number of indices
Source: World Economic Forum
© 2015 Deloitte Business Solutions Hadjipavlou Sofianos & Cambanis S.A.
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2015 TTCI global rankings
Spain tops the 2015 edition of the TTCI global rankings for the first time. 6
out of top-10 countries are European, whereas Greece ranks 31st, moving up
one place from 2013.
01
Spain
06
Switzerland
02
France
07
Australia
03
Germany
08
Italy
04
USA
09
Japan
05
UK
10
Canada
31
Greece
Source: World Economic Forum
© 2015 Deloitte Business Solutions Hadjipavlou Sofianos & Cambanis S.A.
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Selected historic rankings
Greece’s TCCI ranking exhibits a declining trend, whereas other
Mediterranean destinations are strengthening their position.
Spain and Portugal are
widening the gap with
Greece
Greece and Cyprus
are showing a
declining trend
Croatia and Turkey are
closing the gap with
Greece
out of 124 countries
out of 133 countries
out of 139 countries
out of 140 countries
out of 141 countries
Source: World Economic Forum
© 2015 Deloitte Business Solutions Hadjipavlou Sofianos & Cambanis S.A.
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T&T competitiveness and performance
There appears to be a strong correlation between competitiveness and
performance in the T&T sector.
WEF T&T
Competitiveness
Index - 2015
International
Tourist
Arrivals - 2014
International
Tourist
Receipts - 2014
Country Brand Index
2014-15
Spain
1
3
2
2
France
2
1
4
5
Germany
3
7
8
3
USA
4
2
1
1
UK
5
8
7
11
Switzerland
6
39
24
15
Australia
7
44
11
6
Italy
8
5
6
10
Japan
9
25
20
14
Canada
10
20
23
17
Greece
31
17
22
25
Turkey
44
6
12
16
Global Rankings
Source: World Economic Forum, World Tourism Organization, Bloom
© 2015 Deloitte Business Solutions Hadjipavlou Sofianos & Cambanis S.A.
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Competitive position per pillar
Areas where large gaps with top performers exist, may provide the most
opportunities for improvement.
Austria
Finland
Canada
Iran
Japan
Spain
Hong Kong
Finland
Singapore
Austria
Malta
Brazil
Switzerland
Singapore
Switzerland
1-7 scale
Nigeria
Venezuela
Mauritania
Burundi
Mozambique
Pakistan
Switzerland
Mauritania
Chad
Burundi
Chad
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Angola
Chad
Haiti
Lesotho
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Ranking per pillar
Greece exhibits its lowest rankings in the areas of “business environment”,
“labour market” and “price competitiveness”. “Health and hygiene” and
“tourist service infrastructure” are the areas where Greece holds top position.
Strong
position
Ranking among
141 countries
Middle
ground
Trend of Greece’s ranking
Weak
position
© 2015 Deloitte Business Solutions Hadjipavlou Sofianos & Cambanis S.A.
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Key strong and weak points
Most of Greece’s lower rankings (6 out of top-10) are related to “business
environment” and secondarily “human resources & labour market”, whereas
strong points are more diverse and mainly related to “health and hygiene”,
and “tourist service infrastructure”.
Weak points (notable low rankings)
Strong points (notable high rankings)
1.
Effect of taxation on incentives to invest (138)
1.
Number of regional trade agreements in force (1)
2.
Effect of taxation on incentives to work (135)
2.
Hotel rooms per 100 pop (2)
3.
Business impact of rules on FDI (131)
3.
Number of physician per 1,000 pop (3)
4.
Efficiency of legal framework in settling disputes (125)
4.
Primary and secondary education enrollment (9 & 13)
5.
Labour and contributions tax rate (124)
5.
Number of World Heritage cultural sites (10)
6.
Pay and productivity (119)
6.
Environmental treaty ratification (11)
7.
Total tax rate (114)
7.
Number of operating airlines (14)
8.
Extent of staff training (111)
8.
Wastewater treatment (15)
9.
ICT use for business-to-business transactions (101)
9.
T&T government expenditure (18)
10. Hiring and firing practices (91)
© 2015 Deloitte Business Solutions Hadjipavlou Sofianos & Cambanis S.A.
10. Airport density (19)
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Key takings
Enhancing the competitiveness of the Greek Travel & Tourism sector can
start by building on our strong points and overcoming our weaknesses.
Encourage and facilitate private investment and business activity in the T&T sector
1
•
Strive for a more simple and efficient legal and regulatory framework
•
Introduce a friendlier and more stable tax regime
•
Promote penetration of ICT (incl. mobile) technologies in business transactions (B2B & B2C)
•
Create a more open, efficient and flexible labour market
•
Improve T&T staff training
Make travelling to Greece easier and more attractive
2
•
Capitalize on Greece being a safe destination with top health and hygiene conditions
•
Improve effectiveness of marketing activities and strengthen the country’s brand
•
Pursue global repositioning based on diversified tourism product portfolio
•
Increase value offered to travelers to enhance competitiveness
•
Build on the high government and private sector prioritization of T&T industry
Further improve T&T infrastructure and assets
3
•
Focus on quality rather than quantity of tourist service infrastructure
•
Enforce regulation to improve environmental sustainability
•
Focus on improving quality of air transport infrastructure, roads and ports
•
Promote business travel and focus on attracting international conferences and events
•
Actively protect and promote the country’s rich natural and cultural resources
© 2015 Deloitte Business Solutions Hadjipavlou Sofianos & Cambanis S.A.
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T&T trends
Understanding the key trends shaping the global travel & tourism sector is
paramount to developing a flexible strategy for enhancing competitiveness.
T&T
sector
© 2015 Deloitte Business Solutions Hadjipavlou Sofianos & Cambanis S.A.
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What’s Next?
Inspiring and engaging the empowered holiday maker …
© 2015 Deloitte Business Solutions Hadjipavlou Sofianos & Cambanis S.A.
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