1 HAT303 Emerging Issues in Hospitality & Tourism Lecture 3 Retirement Tourism COMMONWEALTH OF AUSTRALIA Copyright Regulations 1969 WARNING This material has been reproduced and communicated to you by or on behalf of Kaplan Business School pursuant to Part VB of the Copyright Act 1968 (the Act). The material in this communication may be subject to copyright under the Act. Any further reproduction or communication of this material by you may be the subject of copyright protection under the Act. Do not remove this notice. HAT304 Lec. 3 1.Retirement Tourism Copyright © 2011 McGraw-Hill Australia Pty Ltd PPT slides to accompany Event Management: Theory and Practice 1e by Wrathall and Gee 2 Chapter learning objectives This semester we study Retirement Tourism • An emerging area in international tourism • Links to country brand image and heritage /culture. • Development of region • Eight factors; Minimum market requirement • Keller’s brand pyramid • The BRTA example An emerging area in international tourism • Enthusiastically embraced by the Bali tourism authorities “this new potential pot of gold”. • Last year the provincial administration created the Bali Retirement Tourism Authority (BRTA) to develop the concept. • Several traditional villages throughout Bali will host elderly tourists in a natural and authentic village-type setting .http://baliadvertiser.biz/retirement_tourism/ Retirement Tourism A Good Idea That Needs a Little Tinkering Feature2013 • The Concept of Desa Wisata/Tourism Village ; visitors get a firsthand look at traditional village life in an upfront and personal encounter with local culture Why this new market: Retirement Tourism • Senior citizen consumers are an important potential market for the industry because of the large number of older people and their purchasing power – They have reached or passed the threshold of the age at which there are some signs of aging. – They feel young relative to their chronological age and, as a consequence, – there is a new subjective variable related to the self-perception of a person and his or her feelings about particular age groups. – This variable has already been used to segment the senior market, and previous results confirm that it is more useful than chronological age to explain the purchasing behaviour of this group (Le Serre, 2008). – Usually they have saved enough to be considered a significant market segment 3 Shifting away from seasonality; Europe Big problems with the tourism sector in Spain and in countries with similar tourism models is seasonality, i.e., the mass influx of tourists during predetermined periods. According to Eurostat data, 51% of this segment is not active and receive a disability pension or retirement (Eurostat, 2005). This represents a very attractive market, both due to its size and their availability to travel. A similar case is found with the elderly, who are no longer integrated into the labour market and have occasion and money to enjoy their leisure time. Also, one should not ignore the increase in European initiatives regarding travel programmes for senior citizens and persons with disabilities, which are offered primarily in low-intensity tourism periods. The BRTA example • BRTA is currently drafting a policy with recommendation on long-stay visits including easing visa requirements and temporary stay permits, as well as the legalities for foreign retirees to lease or buy properties in Bali. • Another of BRTA’s objectives is to open the opportunity for investors to build retirement resorts in areas around the villages. • In keeping with the plan to spread development and benefit local communities, investors will only be allowed to establish retirement-oriented businesses outside the crowded southern regions of the island. The “grey” travelers market potential for Bali. • The average length of stay of visitors had declined from 7 days to only 3 to 4 days. • The retired generation typically stay for extended periods. • Around 2000 foreign retirees have been visiting Bali for yearly vacations, mostly from the cool, Nordic climates of Europe, Australia and Japan. • The government is targeting for 10,000 senior citizens to become semi-resident in Bali by the year 2020. • taking steps to secure a larger share of this niche travel market and is working with the Bali Retirement Tourism Authority (BRTA) to regulate retirement tourism on Bali and prepare an environment which meets the needs of older travelers. 4 An emerging area in international tourism TPS Seven villages have been selected for development as senior citizen destination: Pinge (Tabanan), Pancasari (Buleleng), Blimbingsari (Jembrana), Bedahulu (Gianyar), Penglipuran (Bangli), Budakeling and Jasri (Karangasem). They will receive technical and financial assistance from the government to prepare for hosting retired or older tourists. TPS: Do an internet search to find other destinations which are actively wooing retirement tourists. Links to country brand image & heritage /culture • The Villages – Village tourism links tourists and culture in a symbiotic relationship in which a harmonious balance is preserved. Hosting and entertaining visitors allow the villagers to present their own socio-cultural values. • Villagers suggest appropriate recreation to their guests that are typical village activities like cultivation, planting, and harvesting of crops. Guests could also take part in village cultural activities such as dance and music, sculpture and crafts, martial arts, weaving and cooking. & in a variety of sports in the countryside such as trekking, jogging, cycling and fishing. • The most important assets and attractions of traditional villages are the natural and cultural resources which make the villages and their surroundings a special place as a tourism destination. Links to country brand image & heritage /culture • The selected seven villages all boast an outstanding environment that is enriched by beautiful rice fields, mountain views and exotic flowers, considered as truly authentic Bali with no pollution and a quiet atmosphere. • The villagers are mainly occupied with growing rice while living in a very traditional way. Modern influence seems to have largely bypassed them. • The villages are a prime example of the ‘Tri Hita Karana’ philosophy, the harmony and balance attained through peaceful relations between human to God, human to human, and human to environment. 5 Development of region without too many middlemen taking a slice • The push to develop village based tourism directly involve traditional communities in rural areas. Accommodations and activities are to be developed and managed by the villages themselves. • Community based tourism will spread the gains of tourism better around and benefit more people in small ways than a few top people in a big way. Traditional villages are crucial supporters of the island’s cultural structure. • The success of Bali’s tourism development relies for a great deal on the sustainability of indigenous village life. By creating a mutually rewarding relationship between tourists and the hosting villages -without too many middlemen taking a slice- the economic benefits generated by tourists would improve the living standard of the village community, earn additional income and create jobs. • The economic impacts of tourists paying for accommodations, buying local products and arts & crafts, using local guides and facilities cannot be underestimated. Ten factors; Minimum market requirement Essential factors needed for being considered a retirement tourism destination? 1. Cost- reasonable 2. Accessibility 3. Language. 4. Security & Safety 5. Infrastructure; Essential and desirable: Example: Medical facilities, Golf, walking tracks, swimming pools, gyms 6. Mix of authenticity and familiarity for the tourist 7. Link to Social work facilities. This is for some tourists who want to spend some time helping the local community on a voluntary basis. 8. Natural flora & fauna 9. Level of Customer Service culture 10.Cultural difference Keller’s brand pyramid 6 How does Keller’s Brand Pyramid fit into the emerging HAT sector • Competitive market means focus on differentiation – The resonance factor ensures stronger brand equity • Performance on a day to day basis with regular interaction quality constantly improving is important • Market feedback in tourism is almost instant with “Trip Advisor” type bodies making it easier for the potential customer to compare brands. • Brand communication is important but so is brand performance . Learning from the market. Europe ; Retirement Tourism • Many countries - mainly the Nordic countries, Germany and the United Kingdom - where accessibility is even more evolved. • They encourage their citizens to view travel as an activity of daily life and a method of personal fulfilment. • Spain is one of the most popular destinations and, thus, should tend towards a quality image. • To do this, it is necessary to raise awareness of the quality tourism sector, with the implementation of different standards, such as UNE 17001-2, which certifies the management of systems for restricted accessibility Spain • Spain has been a pioneer in its conception of senior tourism as a reality independent of other tourism subsectors (Álvarez, 2006) and has even served as a model for other countries with its IMSERSO (Institute for the Elderly and Social Services) programmes. • The Institute aims to improve the quality of life of older people by increasing their participation in travel and tourism activities, while contributing to the creation or maintenance of employment in the tourism sector in the low season. 7 Europe : Spain • Senior citizens Elderly people, aged 65 years or older without disabilities, comprise 10.9% of the total Spanish population, due to the aging population. • Focusing on this segment, we observe that "travel and tourism," which is the second activity they would like to do after "walking", is a desire shared by 60% of women and 46% of men (NSI, 1995). • Spain will be one of those countries that experiences a significant demographic aging in Europe, and one in two people will be at least 55 years of age in 2050. • - INE (National Institute of Statistics), 2008 Table 2. New Opportunities for the Tourism Market Senior citizen motivations; Horneman, Carter, Wey and Ruys (2002) Queensland (Australia) • Travel while health is good • Spend time with family and friends • Visit places they have always wanted to visit • Make the most of free time Acevedo (2003) Brazil • Try new things/visit new places Rest and relax • Escape the daily routine Interact with other people Hossain, Bailey and Lubulwa (2003) Australia Vacations Visit family Huang and Tsai (2003) Tapei and Kaohsiung (Taiwan) • The three most important: Lee and Tideswell(2005) Korea – Rest and relaxation – Meet people and socialise – Be with family New Opportunities for the Tourism Market • Enjoy natural attractions • Visit new places and try new things • Rest and relaxation • Occupy free time • The two most important motivations seem to be : • See things during vacations that they would not normally see in their daily life • Be with family and friends. 8