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Laurent Vanat LV/16/04/2012 2012 International report on mountain tourism Will it go global thanks to the web ? 7 th World Congress on Snow and Mountain Tourism - Andorra – 11.04.2012

Andorre 2012

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Presentation of the 2012 International report on mountain tourism, at the 7th World Congress on Snow and Mountain Tourism, held on April 2012 in Andorra. Featuring an update on the industry statistics, the recent evolution of the main regional markets and then some considerations about the market drivers. The presentation then supplies some facts and figures in response to the question "Will mountain tourism go global thanks to the web?"

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Page 1: Andorre 2012

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LV/16/04/2012

2012 International report on mountain

tourism

Will it go global thanks to the web ?

7th World Congress on Snow and Mountain Tourism - Andorra – 11.04.2012

Page 2: Andorre 2012

page 2

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t Agenda

� State of the industry

� Recent market evolution

� Market drivers

� Internet as a market driver ?

Page 3: Andorre 2012

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LV/16/04/2012

The state of the industry today

Page 4: Andorre 2012

page 4

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t The world ski market

80 countries 2’000 ski resorts

6’000 places of practice 27’000 lifts

Page 5: Andorre 2012

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t Major players (countries)

� A limited number of countries concentrate most of the attendance

Others

22%

Majors

78%

7 countries

70 countries

Page 6: Andorre 2012

page 6

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t Top countries in the world

0.0 10.0 20.0 30.0 40.0 50.0 60.0

RomaniaChile

New ZealandSlovenia

ArgentinaAustralia

PolandAndorraFinland

CzechRussia

SlovakiaChina

NorwayKorea, South

SpainSweden

GermanyCanada

ItalySwitzerland

JapanAustriaFrance

United States

In million skier visits

Page 7: Andorre 2012

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t Some challengers

Country Argentina Bulgaria Chile Poland Russia Slovenia

Number of resorts 22 32 21 72 170 44

Number of major resorts (>1 mio SV)

0 0 0 0 0 0

Number of lifts 145 94 122 832 414 217

Skier visits (million) 2 1 1 4 3 1

Population (million) 40 7 16 39 141 2

Ranking in world tourism 44 39 #N/A 19 13 #N/A

Arrivals of international tourists (million)

4 6 3 12 19 2

Proportion of foreign skiers

25% 25% 15% 10% 2% 17%

SV / inhabitant 0,0 0,1 0,1 0,1 0,0 0,6

SV / foreign visitor 0,1 0,0 0,1 0,0 0,0 0,1

Page 8: Andorre 2012

page 8

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t Major players (resorts)

� At national level, a limited number of ski areas concentrate most of the attendance

Example : Switzerland

Other resorts

13%

Resorts >

100'000 SV

87%

63 resorts

142 resorts

Page 9: Andorre 2012

page 9

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t National skiers

� Strength of national customer base of most of the big players. Foreign visitors concentrate on a few top international resorts.

0%10%20%30%40%50%60%70%80%90%

100%

Andorr

a

Aust

ria

Sw

itze

rland

New

Zeala

nd

Fra

nce

Bulg

aria

Italy

Slo

venia

Canada

Cze

ch

Germ

any

Hungary

Kore

a, South

Slo

vakia

Spain

Fin

land

Norw

ay

Sw

eden

United S

tate

s

Chin

a

Pola

nd

Rom

ania

Ukra

ine

Japan

Aust

ralia

Share of foreign visitors

Domestic Foreigners

Page 10: Andorre 2012

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t National vs international

� Share in the number of skiers of foreign visitors is less than one sixth of total participants

Internationals

14%

Nationals

86%

Page 11: Andorre 2012

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LV/16/04/2012

Recent market evolution

Page 12: Andorre 2012

page 12

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t Europe - Alps

0

20

40

60

80

100

120

140

160

180

2000/01

2001/02

2002/03

2003/04

2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

Skier visits (million)

- 4.7 %

Page 13: Andorre 2012

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t Europe - Alps

� Attendance is still on a growing long term trend in some countries – really ?

Evolution of the 5 years average attendance

(million skier visits)

454647484950515253545556

2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11

Austria

France

Page 14: Andorre 2012

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t Europe - Alps

� ... while on a rather declining trend in some others, with a reversal of tendency for Italy

Evolution of the 5 years average attendance

(million skier visits)

24

25

26

27

28

29

30

2004/052005/062006/072007/082008/092009/102010/11

Italy

Switzerland

Page 15: Andorre 2012

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t North America

0

10

20

30

40

50

60

70

80

90

2000/01

2001/02

2002/03

2003/04

2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

Skier visits (million)

+ 1.4 %

Page 16: Andorre 2012

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t North America

� Mature markets; USA however successfully fighting against decline in visitation

Evolution of the 5 years average attendance

(million skier visits)

15

16

17

18

19

20

2004/052005/062006/072007/082008/092009/102010/11

50

52

54

56

58

60

Canada

USA (right)

Page 17: Andorre 2012

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t Europe – Other western countries

0

5

10

15

20

25

30

35

40

45

2000/01

2001/02

2002/03

2003/04

2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

Skier visits (million)

- 6.1 %

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t Europe – Other western countries

� Norway still showing some real growth trend, while Andorra suffering

Evolution of the 5 years average attendance

(million skier visits)

0

1

2

3

4

5

6

7

8

9

2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11

Andorra

Spain

Finland

Norway

Sweden

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t Asia - Pacific

0

10

20

30

40

50

60

70

2000/01

2001/02

2002/03

2003/04

2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

Skier visits (million)- 5.2 %

Page 20: Andorre 2012

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t Asia - Pacific

� Decline in Japan, growth in China and South Korea, maturity in Australia / New Zealand

Evolution of the 5 years average attendance

(million skier visits)

0

1

2

3

4

5

6

7

2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11

0

10

20

30

40

50

60

South Korea

Australia

New Zealand

China

Japan (right)

Page 21: Andorre 2012

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t New lifts

New lifts deliveries by regions

0

50

100

150

200

250

300

350

400

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Various

Europe

East

Asia

America

Alps

Page 22: Andorre 2012

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t Lifts - evolution

2001-2010 renewal rate

0% 20% 40% 60% 80% 100%

Armenia

Belarus

Kazakhstan

Latvia

Serbia

Korea, South

Georgia

Italy

Austria

France

Switzerland

Canada

United States

Page 23: Andorre 2012

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LV/16/04/2012

Market drivers

Page 24: Andorre 2012

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t World evolution

0

50

100

150

200

250

300

350

400

2001/0

220

02/0

3200

3/04

2004/

05200

5/06

2006/

07200

7/08

2008/0

920

09/

10201

0/11

Sweden

Spain

Slovenia

Norway

New Zealand

Korea, South

Germany

Finland

China

Australia

Andorra

United States

Switzerland

Japan

Italy

France

Canada

Austria

Skier visits of top players

(in million)

Page 25: Andorre 2012

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t In search for correlation ...

� Majors : despite GDP growth and tourism still developing, skier visits follows and other pattern

on a 100 basis

for 2001

80

85

90

95

100

105

110

115

120

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

International touristsarrivals

Overnight stays

Skier visits

GDP

Page 26: Andorre 2012

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t In search for correlation ...

� Challengers : pace of development of ski has been stronger than the other indicators !

on a 100 basis

for 2001

80

90

100

110

120

130

140

150

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

International touristsarrivals

Overnight stays

Skier visits

GDP

Page 27: Andorre 2012

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t Weather - sun

� Sunny days do not guarantee a good ski season

Switzerland

20'000'000

22'000'000

24'000'000

26'000'000

28'000'000

30'000'000

32'000'000

2000

/01

2001

/02

2002

/03

2003

/04

2004

/05

2005

/06

2006

/07

2007

/08

2008

/09

2009

/10

2010

/11

500

550

600

650

700

750

800

850

Skier visits Sunny days (score)

Page 28: Andorre 2012

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t Snowfall

� Visitation at ski resorts is not so well correlated with snowfall either (example : USA)

RRC Associates

Page 29: Andorre 2012

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t Exchange rates

� Weak GBP has globally low impact on attendance; strong CHF may have some (to be confirmed)

Alps (Eurozone)

0,00

0,20

0,40

0,60

0,80

1,00

1,20

1,40

1,60

1,80

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

0

20'000'000

40'000'000

60'000'000

80'000'000

100'000'000

120'000'000

140'000'000

160'000'000

skier visits Austria / France / Italy rate GBP/EUR

Switzerland

0,00

0,50

1,00

1,50

2,00

2,50

3,00

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

0

5'000'000

10'000'000

15'000'000

20'000'000

25'000'000

30'000'000

35'000'000

skier visits Switzerland rate EUR/CHF rate GBP/CHF

Page 30: Andorre 2012

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LV/16/04/2012

So is Internet the market driver ?

Page 31: Andorre 2012

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t The growth of Internet ...

� ... does not seem to correlate with development of attendance at ski resorts !

0

500

1'000

1'500

2'000

2'500

3'000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Estimated Internet users (mio)

Skier visits (mio)

Page 32: Andorre 2012

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t Ski resorts & Facebook fans

� Nice to have, but still not the market driver !

Facebook fans in % of skiers in resorts > 1 mio skier visits

0% 2% 4% 6% 8% 10% 12%

Italy

France

Switzerland

Korea, South

Austria

Spain

Sweden

Canada

Andorra

United States

Survey 1.4.2012

Page 33: Andorre 2012

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t Online sales (ski passes)

� Only 3% of tickets sales done online in Switzerland (survey 2009/10 winter season)

others

97%

online

sales

3%

Page 34: Andorre 2012

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t Internet impact

� Internet may bring positive aspects ... But they are limited and mitigated by negative ones.

– Marketing operation mode has changed, but this does not enable enough market development (swaps !)

– Internet is before all a powerful sales and promotiontool towards existing customers

– Mountain destinations can take advantage of it, but not all do well (conservative environment)

– Competition increased and has been enhanced by Internet

– The benefits of Internet are also available to all competing industries

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t Internet impact

Positive aspects

� Enhances communication

� Facilitates bookings and travel arrangements

� Facilitates daily packages sales

� Make snow conditions more transparent for daily skiers (with some drawbacks !)

Negative aspects

� Increases competition (direct / indirect)

� Web is by itself competing

� Increases the impact of soft factors (psychological effects)

� Does not help to learn skiing and does not facilitate the praxis !!!

Page 36: Andorre 2012

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t Internet drives globalisation

� International connexions

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t Global or local ?

� Globalisation does not bring more clients at ski resorts !

� Mountain tourism is before all local, the web will not make it global :

– Traditional industry

– Weigh of international customers is limited for most ski destination countries

– International catchments areas are limited

� Markets size

� Issue of transportation

� Travel time & cost

� Saturation of airport at ski destinations

– Overseas skiers have always been anecdotic minorities

Page 38: Andorre 2012

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t Conclusion

� Ski market is peculiar

� Not globally correlated with variation of worldwide tourism & economy

� Internet is a new sales & marketing channel mostly towards existing customers

� So what is the driver of attendance at ski resorts ?

Page 39: Andorre 2012

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t The winning combination

S now

S un

S erene economy

S oft factors

La combinaison gagnante

E nneigement

E nsoleillement

E conomie

E tat d’esprit

Page 40: Andorre 2012

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t Further reference

� www.vanat.ch

– Page « Publications »

Page 41: Andorre 2012

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LV/16/04/2012

Laurent Vanat

19, Margelle

CH - 1224 Geneva

Tel / fax / voicemail : +4122 349 8440

E-mail : [email protected]

Website : www.vanat.ch

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