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2. Tourism in Spain - 2010 Spain received 52.7m tourists in 2010 / 49.000m € income It currently generates more than 10% of GDP and around 11.3% 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 in July, August and September 63% stay in hotel establishments IET /ETC/Eurostat

3. Tourism in Spain - 2010 70.3% of tourists arrange their holidays independently (packages continue to decline) 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 (8.5/10) IET /European Commission 3

4. International tourist arrivals (low cost airlines vs. schedule carriers) 4 Source: Aena

5. Tourist population by age groups 5

6. Composition of tourist groups 6

7. Reasons for Travelling to Spain 7

8. Source: IET, Encuesta de Gasto Turistico 8

9. Loyalty to the destination (Tourist’s level of satisfaction: 8.5) 9

10. International tourist arrivals 10

11. 11 Short Breaks City Break – Cultural Tourism - Heritage, museums, cultural visits, events, etc. - Gastronomy & wine - Health & Wellness - Shopping - Luxury breaks - LGTB - Industrial tourism Active Tourism - Rural & Agricultural - Golf - Adventure, water & soft sports - Nature related activities - Holistic breaks MICE - Meetings - Incentives - Conventions - Events Others - Theme parks - Senior & Disabled - Language tourism - VFR - Cruises

12. City Breaks Cultural Tourism: - Museums - Art galleries - Opera - Theatre - Musicals - Exhibitions - Walking tours - Film locations 12

13. Gastronomy “Travel broadens the mind, but it also sharpens the palate” - Food is fashionable - 10% tourist motivated visits to Spain - Big name chefs and awarded restaurants - Cookery courses on the increase 13

14. Enology - Visit to traditional wineries and wine tasting - Museums and interpretation centres - Addtional activities linked to wineries - Wineries and architecture 14

15. Health & Wellness - Well-being breaks - Keeping fit and healthy - Look and feel better (relaxation, holistic hols.) - Loose weight and slow effects of ageing (beauty treatments) - Spa facilities in hotels - 15

16. Shopping -High income groups - Combine with other activities - Wider audience - Special ocassions, celebrations,… -Tax free for tourists 16

17. LGTB - 30% of more disposable income - Less affected by the economic recession - Half of their expenditure in leisure activities and shopping - Take several breaks 17

18. Active Tourism - More resilient to the economy downturns - Help to rejuvenate the stagnant domestic market - Induce dynamism to mature destinations - Walking, hiking and trekking lead the way 18

19. Golf - 1.6m annual trips in Europe, 60% int. - Travel in Spring and Autumn - Longer stay in the destination - Combine with gastronomy, shopping and spa activities 19

20. 20 Short Breaks City Break – Cultural Tourism - Heritage, museums, cultural visits, events, etc. - Gastronomy & wine - Health & Wellness - Shopping - Luxury breaks - LGTB - Industrial tourism Active Tourism - Rural & Agricultural - Golf - Adventure, water & soft sports - Nature related activities - Holistic breaks MICE - Meetings - Incentives - Conventions - Events Others - Theme parks - Senior & Disabled - Language tourism - VFR - Cruises

21. Need of searching niche markets 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) 21 Daemon Quest

22. Need of searching niche markets (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 22 Daemon Quest

23. Need of searching niche markets (III) Profile 3: Couples – DINKIS Big disposable income for leisure activities Internet (online dating agencies, millions of users) Travel on weekends and national holidays, plus exotic destinations in summer Internet, travel agencies and word of mouth recommendation Seek differentiation, charming establishments, city breaks and sport activities in the countryside Price is not concern, seek comfort and service 23 Daemon Quest

24. Need of searching niche markets (IV) Profile 4: Singles Singles, divorced, widows… Higher socio economic profile Socially active, not family responsibilities Seek a personalized tourist offer 24 Daemon Quest

25. International tourist arrivals 25

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27. 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 27

28. 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 28

29. New Strategic Tourism Plans 29 Plan Turismo Litoral Siglo XXI

30. 30 84% int. arrivals (44m tourists) 50% domestic trips (82.2m visits) Source: IET AVANCE FAMILITUR

31. New Strategic Tourism Plans 31 Promotion of Cultural Tourism

32. Promotion of Cultural Tourism More than half of the tourists visit cultural sites 32

33. Marketing and Promotional Tools Conventional Channels and Use of New Technologies 33

34. Use of Internet 57% of tourists that visited Spain use Internet regularly 34

35. Conventional channels Travel supplements Press and fam trips Newsletters Trade fairs, roadshows Advertising off and online Display advertising Prizes, competitions,… 35

36. Campaigns with the tourist trade 36

37. Support and sponshorship of events related to Spain 37

38. Street Marketing & Consumer Focused Events 38

39. International New Campaign Based on Spanish lifestyle; it has already impacted 350 million people worldwide Famous faces for the advertising Campaigns Additional campaigns with the ocassion of special events Presence in key events Transmit messages to motivate consumers - experiences 39

40. International New Campaign … based on Spanish Lifestyle 40

41. International New Campaign … branding ambassadors 41

42. International New Campaign... with the ocassion of special events 42

43. International New Campaign … f or everyone 43

44. International New Campaign … f or every ocassion 44

45. New Technology and Social Media Platforms The consumer has now the power Presence in Social Media Mobile Travel Technologies (Smartphones, iPhones, iPads, MP3) Dedicated Spain Brand Channel in Youtube Images, visual impact 45

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48. 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 Short breaks have extended the tourist season, breaking seasonality Branding and image of the destination affects the decision process of tourists for choosing a destination People are keener to spend their disposable income on experiences rather than on material goods 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 48

49. Thank You 49