1. 1 Jesús Ruiz-Martinez Brussels 26th March 2012

2. Tourism in Spain - 2011 Spain received 56.7m tourists in 2011 / 52.796m € income (+7,6%) It currently generates more than 10% of GDP and over 11% of all jobs Europe is Spain’s main market (93%), with the UK, Germany and France concentrating 56% of tourist arrivals Over 19 million (37%) arrived during the summer season Average stay: 9 days / 63% stay in hotel establishments (83m out of 175.4m overnight stays was in 4* hotels) IET/ETC/Frontur/Eurostat/TNS

3. Tourism in Spain - 2011 70% of tourists arrange their holidays independently (packages continue to decline) 44.6m tourist arrivals by plane. The number of arrivals using low cost airlines surpassed the schedule carrier ones More than half of tourists have high education and university degrees Occupation: ¾ of tourists are currently employed High level of satisfaction with the destination (8.5 out of10) IET/ETC/Frontur/Eurostat/TNS 3

4. International tourist arrivals / expenditure 4

5. Plan Turismo Horizonte 2020 Designed to improve the quality of Spain’s tourism product by the year 2020 Aims at keeping Spain’s status as one of the world’s most popular destinations: - to fine-tune the impact of tourism by extending the season and promoting lesser known areas of the country - to develop tourism using sustainable resources and a skilled labour force - to continue to be innovative in the industry improving Spain’s market position 5

6. The 2020 Tourism Plan key actions Reassessment of mature tourism destinations: - Tourism facilities renovation plans: Plan Renove and FuturE - Tourism infrastructure Modernisation Fund: FOMIT Furthering knowledge - Promoting and developing innovative tourism clusters - Reinforcing experience-based products Encouraging a culture of attention to detail - Customer service - Embellishment of the destination - SCTE - Spanish Tourism Quality System 6

7. The 2020 Tourism Plan key actions (II) Advancing towards major sustainability commitments - Planning and management in Tourism destinations (implementation Local Agenda 21) De-seasonalisation, stressing the importance of resources that promote social and regional balance in tourism Attracting and improving our talent base - Retaining the best professionals in the sector Tourism Accessibility - Disabled and restricted mobility tourists - Visas and red tape 7

8. 8 Short Breaks City Break – Cultural Tourism - Heritage, museums, cultural visits, music, events… - Gastronomy & wine - Health & Wellness - Shopping - Luxury breaks - Industrial tourism - Golf Active Tourism - Rural & Agricultural - Adventure, water & soft sports - Nature related activities - Holistic breaks - Golf MICE - Meetings - Incentives - Conventions - Events Others - Cruises - Senior & Disabled - Theme Parks/Gambling - School Tourism - Slow Travel

9. Microsegmentation Profile 1: Tired Parents Professional working parents with children aged 5-15 year-olds They lack time to spend with their children due to work commitments Take family weekend trips 78% of parents are influenced by their children’s decisions Seek comfort, security and entertaining activities Increasing number due to growing birth rate Expenditure secured as they value family moments (no economic crisis sensitive) Grandcations – grandparents increasingly taking children on trips abroad 9 Daemon Quest

10. Microsegmentation (II) Profile 2: Friends 18-34 year-olds Enjoy the company of friends Travel 50% more than tired parents or couples Travel 5-6 times / year 75% use car for transportation Impulsive character, like short stays, shopping, leisure activities Price sensitive, last minute offers Use of new technologies for the organization of trip Use of traditional travel agencies when spending long stays or traveling with families 10 Daemon Quest

11. Microsegmentation (III) Profile 3: Couples – DINKIS Big disposable income for leisure activities Travel on weekends and national holidays, plus exotic destinations in summer Seek differentiation, charming establishments, city breaks and sport activities in the countryside Price is not concern, seek comfort and service Internet, travel agencies and word of mouth recommendation 11 Daemon Quest

12. Microsegmentation (IV) Profile 4: Singles Singles, divorced, widows… Higher socio economic profile Socially active, not family responsibilities Seek a personalized tourist offer They look for more extreme experiences and thrills Stop penalising solo travellers 12 Daemon Quest

13. Branding, Marketing and Promotional Tools 13

14. Presence and display advertising, off and online Conventional channels and new technology devices Travel supplements Press & fam trips Newsletters Trade fairs, roadshows Training modules for agents Campaigns with the tourist trade Prizes, competitions 14

15. Street Marketing, Consumer Focused Events, Sponshorship of events related to Spain 15

16. International New Campaign and Social Media facilities Based on Spanish lifestyle; it has impacted over 400 million people worldwide Famous faces for the advertising Campaigns (ambassadors) Additional campaigns with the ocassion of special events Transmit messages to motivate consumers – experiences Real-time use of social media facilities reporting extremely precise information 16

17. International New Campaign … based on Spanish Lifestyle 17

18. International New Campaign … branding ambassadors 18

19. International New Campaign... with the ocassion of special events 19

20. International New Campaign … for everyone 20

21. International New Campaign … for every ocassion 21

22. Mobile Technology, Social Media Platforms and Digital Support The consumer has now the power - People are hungry for opportunities to share Social Media has probably become the most important marketing channel for the tourism industry Mobile Travel Technologies, dedicated Brand Channel in Youtube and website, profiles in the social networks, branding in videogames, App for i-devices and tablets – “Keep Sharing experiences” Images, visual impact is paramount 22

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25. Summing up Holidays have become a need rather than a luxury Travel is breaking down barriers of age, taste and income New tourists’ motivations are progressively segmenting the market and creating new opportunities for niche markets Authenticity is now a key decision factor Short breaks have extended the tourist season, breaking seasonality Cross and Up-selling techniques Branding and image of the destination affects the decision process of tourists for choosing a destination 25

26. Summing up (II) People are keener to spend their disposable income on experiences rather than on material goods Tourists want unique, personal experiences, to become immersed in a country and gain local knowledge and understanding Internet and social networks have modified travel patterns and customised travel arrangements Invite people to participate in the experience, influence the behaviour through social media Peer recommendation has increasingly become more relevant to people than expert advice Marketing and e-commerce focused on mobile technology 26

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