BCR raport turism

8/3/2019 BCR raport turism

1/24

1

Romanian Tourism

Long-term investment

in pure nature andhistory

- November 2011 -


2/24

2

Romanian tourism: Looking ahead

More and better road infrastructure, easier access to local tourist attractions; both coverage and

quality should be developed so as to bring road infrastructure closer to the European benchmark; road

transportation prevails when travelling from one destination to another.

More FDIs, more know-how, better services; this will lay the foundations for a wider base of foreign

tourists and longer holiday stays in tourist facilities in Romania

More foreign tourists, more tourism activity; with one of the highest potentials in tourism in theregion (natural landscape and biodiversity), Romania is pretty slow in attracting foreign visitors, who

spend 12 times more on average than resident ones.

Higher education, better grasp of todays tourism realities; employment education is an important

asset for tourism industry; primary education holds an important share in total employment in Romania;possible negative impact on the quality of service and travelling conditions for foreign tourists.

Continuation of well-focused marketing campaigns, higher position of Romania on tourist map;

promoting Romanias image abroad has started to pay off and the number of foreign arrivals in our

country rose 11% y/y in the first seven months of 2011, while gross inflows in the balance of tourismwere up 16% y/y during January and July.

More investments, higher income in the balance of tourism, improved performance of the C/A;

organic investments combined with foreign capital in tourism could generate additional inflows in the

balance of tourism estimated at up to EUR ~1-1.5bn in 2016.


3/24

3

-3

0

3

6

9

12

15

18

21

24

AT HR CZ HU BG PL SK RO HR BG AT HU CZ PL SK RO-1

0

1

2

3

4

5

6

7

8

/

/

33

36

30

27 / /

14

13

12

EUR bn. %

RO RO

0

20

40

60

80

100

120

140

160

HR BG CZ HU SK PL RO BG HR RO SK PL CZ HU

0

50

100

150

200

250

300

350

400

450

500

RO RO

FDIs (stock 2010)/capitain tourism FDIs inflows 2006-2010

Source: Eurostat

Source: Eurostat

Net inflows from tourism

2006-2010Net inflows/GDP

2006-2010

Insufficient FDIs in tourism stripped Romania of potentialwealth

Romania came third in terms of FDI

inflows in tourism during 2005-2009 with

around EUR 186mn; Bulgaria was in a

much better position, raking in more than

EUR 450mn during the same period,

which shows a greater propensity

towards this particular area of activity

Romania is the only country within the

group that posted a negative aggregate

income in the balance of tourism 2006-

2010; Croatia is a top dog, earning almost

EUR 30bn in only five years; under

similar conditions, the C/A deficit of

Romania 2006-2010 would have stood at

less than 4% of GDP instead of ~9%.


4/24

4

SK CZ

BG

HU

PL

Croatia (HR)

RO

-20

0

20

40

60

80

100

120

140

160

180

-200 0 200 400 600 800 1000 1200 1400 1600 -20

0

20

40

60

80

100

120

140

160

180

6.6

/ /

. . . . . . .

Net inflows/ capita, EUR

FDIs/capita, EURBubble size: inhabitants

6,600 6,8006,400

Status of tourism across Central and Eastern Europe

Source: Eurostat

Tourism profile varies from one country to another

Bulgaria attracted netincome close to EUR

7bn 2006-2010 ofwhich EUR 1.8bn in

2010


5/24

5

0

2

4

6

8

10

12

AT HR CZ PL HU BG SK RO

million

0

2

4

6

8

10

12million

20 20

/ /

18 18

/ /

RO

The vast majority of foreign tourists visiting Romania cometo spend their holiday

Arrivals of foreign tourists 2006-2010 yearly average

Source: Eurostat

The purpose of visiting a country (2006-2010)

Source: Eurostat

0

10

20

30

40

5060

70

80

90

100

PL AT SK CZ BG HU RO

0

10

20

30

40

5060

70

80

90

100

Holiday Business

RO

Austria, Croatia and the Czech Republic

have by far the highest check-in rates for

foreign visitors; ~5 times more foreign

tourists put up at a hotel in Croatia thanin Romania, which is closer to the

numbers reported by Slovakia and

Bulgaria.

90% of the foreigners come to spend

their holiday in Romania, which is more

or less the case for Hungary; at the other

end of the scale, Poland holds a higher

share of foreigners coming for business

purposes (>22%), which could mean that

that country is a preferred businessdestination.


6/24

6

Longer holiday stays in Bulgaria than in Romania

1.0

1.5

2.0

2.53.0

3.5

4.0

4.5

5.0

5.5

BG HR AT CZ SK HU PL RO

1.0

1.5

2.0

2.53.0

3.5

4.0

4.5

5.0

5.5

RO

Average stay of non-resident tourists (nights)

Source: Eurostat

Foreign tourists spend more than twice

the time in Bulgaria than in Romania,

which is quite something, considering

that the largest part of foreign tourists

come to Romania for holiday purposes;

Bulgaria and Croatia are the two main

competitors in terms of average stay per

arrival.

0

10

20

30

40

50

60

70

80

90

100

BG RO . . . . . . . AT PL CZ HU HR SK

0

10

20

30

40

50

60

70

80

90

100

Other

PL

RO

UK

RU

DE

RO

Top 5 visiting countries in Bulgaria andselected countries (nights spent)

Source: Eurostat

Top 5 visiting countries in Bulgaria have

a lower profile in Romania (~30%);

Germany is no.1 in terms of nights spent

and here again Bulgaria manages to

outstrip Romania; Germans make up

more than 25% of the total tourist base,

while Romania is trailing well behind with

only 16% of the total.


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7

Who spends what and who spends the most

Top 10 European countries spending the most (EUR/trip)

Source: Eurostat

Source: Eurostat

How much money the top 5 visiting countries

spend per trip (EUR)

500

600

700

800

900

1000

1100

Fra

nce

Norway

Au

stria

Denm

ark

S

pain

Italy

Ire

land

Belg

ium

Portugal

Swe

den

500

600

700

800

900

1000

1100

Foreign visitors spend less money in

Romania than in Bulgaria; service quality

combined with poor infrastructure

squeeze the countrys capacity to earnmore money; Romania must put its best

foot forward for acquiring new FDIs in

tourism in order to develop both

infrastructure and know-how.200

250

300

350

400

450

500

550

600

AT PL HR CZ BG HU RO SK

200

250

300

350

400

450

500

550

600

RO

Average

Romania should focus more on attracting

tourists from countries that tend to spend

the most per trip; out of the top 10

countries spending the most, Romania is

visited only by France and Italy; tourists

financial spending profile is also

important when it comes to improving the

numbers in the balance of tourism.


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8

Domestic travelling high profile in Romanian and Bulgaria

No. of trips/inhabitant

Source: Eurostat

0

10

20

30

40

50

60

70

80

90

100

RO BG HU PL CZ HR SK AT

0

10

20

30

40

50

60

70

80

90

100

Domestic Abroad Both

RO

Source: Eurostat

Travelling destination

The financial situation and living

conditions could be the main causes for

weak tourism participation; more than

one out of four people in the EU reported

facing financial constraints, whereas in

Romania three out of four individuals

cannot afford a one-week annual holiday.0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

PL CZ AT HR HU BG SK RO

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

RO

Average

Romanians and Bulgarians prefer

travelling domestically, while all others in

the group have a greater profile of

travelling abroad.


9/24

9

Travelling purposes of resident tourists

Domestic travelling

Travelling abroad

0

10

20

30

40

50

60

70

80

90

100

RO HU BG CZ PL HR AT SK

0

10

20

30

40

50

60

70

80

90

100

Holiday Business

RO

0

10

20

30

40

50

60

70

80

90

100

HU CZ RO BG SK AT HR PL

0

10

20

30

40

50

60

70

80

90

100

Holiday Business

RO

Source: Eurostat

Source: Eurostat

Almost 98% of Romanians spend their

vacation domestically and the situation is

pretty much the same in Hungary; in the

EU, more than 3/4 holiday trips made by

residents were within their country of

residence.

Only residents of Netherlands, Slovenia,

Belgium and Luxembourg tend to spend

most of their holiday outside their home

countries; business trips abroad among

resident tourists have a higher profile in

Poland, Croatia and Austria.


10/24

10

Holiday destinations for Romanians

Source: Eurostat

Business destinations for Romanians

0

20

40

60

80

100

120

140

160

Itlay

Hungary

Greece

Spain

Germany

Bulgaria

Austria

Turkey

US

Great

Britain

tsd.

0

20

40

60

80

100

120

140

160tsd.

0

5

10

15

20

25

30

Italy

Ge

rmany

US

Hungary

Spain

G

reece

A

ustria

Turkey

F

rance

Au

stralia

0

5

10

15

20

25

30

Source: Eurostat

Italy, Hungary and Greece preferred holiday destinations forRomanians

Italy, Hungary and Greece are the most

common holiday destinations for

Romanians; travelling to Italy could also

be related to the large number ofRomanians working abroad (family

visits).

Italy and Germany are the main foreign

trade partners for Romania; around 30%

of foreign trade is done with these two

countries; the two-fold increase in foreign

trade with the US in the last 10 years may

have prompted a rise in business trips to

the US.


11/24

11

July and August the busiest months of the year

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

tsd

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500tsd

Time of departure for Romanian tourists (2006-2010)

Source: Eurostat

0

10

20

30

40

50

60

70

80

90

100

Domestic Abroad

%

0

10

20

30

40

50

60

70

80

90

100%

65+ 45-64 25-44 15-24

Age groups of Romanians going on holiday

Source: Eurostat

July and August are the busiest months,

cumulating around 30% of total nights

spent in local hotels and other collective

accommodations (EU27: 34%); Bulgaria

manages to concentrate around 36% of

total nights spent in these two peak

months.

Tourists aged 25-44 are the main

travelling segment in all selected

countries, both domestically and abroad;however, Romania displays a higher

share of this particular age group within

the total trips taken by residents (47% of

domestic trips and 52% of outbound

trips).


12/24

12

Romanians prefer long trips, but spend less than most oftheir counterparts

Spending per trip (domestic and abroad)

Source: Eurostat

0

100

200

300

400

500

600

700

800

900

AT HR SK BG PL RO CZ HU AT BG SK HR CZ RO HU PL

EUR

0

100

200

300

400

500

600

700

800

900EUR

RO RO

Domestic Abroad

Holiday trip length (no. nights)

Source: Eurostat

Note: Short = 1 to 3 nightsLong = 4 nights or more

Romanians spend on average almost 6x

more per one trip abroad (~EUR 411) than

within the home country (~EUR 70);

Bulgarians, however, spend more money

than Romanians both at home and

abroad; this is pretty odd, considering

that the average wage in Bulgaria is more

than 20% lower than in Romania.

Romanians prefer longer holiday trips,

while most of the selected countries tend

to go on short trips; despite the

propensity towards short trips for anumber of countries in the group,

spending per trip seems to be less

influenced by this factor; most likely,

service quality is responsible for the

overall cost of the trip.

0

10

20

30

40

50

60

70

80

90

100

HU BG CZ HR PL RO AT SK

0

10

20

30

40

50

60

70

80

90

100

Short holiday Long holiday

RO


13/24

13

0

10

20

30

40

50

60

70

80

90

100

AT HU PL CZ SK RO BG HR

Land Air Sea

RO BG CZ HU AT PL RO SK HR

0

10

20

30

40

50

60

70

80

90

100

Private & hired veh. Bus & CoachRailway Other

RO

Land transportation bedrock of tourism industry in the region

Domestic trips

Source: Eurostat

Land transportation

0

10

20

30

40

50

60

70

80

90

100

HR RO CZ HU BG SK PL AT

Land Air Sea

RO BG CZ HU AT PL RO SK HR

0

10

20

30

40

50

60

70

80

90

100

Private & hired veh. Bus & CoachRailway Other

RO

Trips abroad Land transportation

Land transportation prevails among

domestic trips, while private and hired

vehicles are at the bottom of land

transportation across all countries in the

region; private & hired vehicles are more

convenient and usually involve lower

travelling costs.

Air transportation is much more visible

as far as outbound trips are concerned;

however, land transportation continues to

have the upper hand in the case of

outbound trips; unlike domestic trips,

bus & coach transportation are more

frequently used when travelling abroad.


14/24

14

0

2

4

6

8

10

12

14

16

18

20

22

AT HR HU CZ SK BG PL RO HU CZ AT PL SK HR RO BG

0

250

500

750

1000

1250

1500

1750

2000

2250

RO RO

0

1

2

3

4

5

6

7

8

9

10

PL HR HU RO AT SK BG CZ AT CZ PL SK HU HR BG RO

0

200

400

600

800

1000

1200

1400

1600

1800

RO RO

tsd

Source: Eurostat

No. of airports Trips/airport

Ailing infrastructure holds down tourism industry in Romania

Highways (Km/1000 sq Km) Roads (Km/1000 sq Km)

Source: Eurostat

Not only are highways rare in Romania,

but the poor road quality is also a major

obstacle for tourism, especially as

tourism relies heavily on landtransportation; major investments in

infrastructure are needed to see the first

results in tourism.

Airport coverage is good in Romania and

this is perhaps the only asset the country

should draw more heavily on; in many

cases, quality of airport services fall

short of the mark and this, combined with

clapped-out road infrastructure, is putting

up barriers to tourism in Romania.


15/24

15

Type of employment

Source: Eurostat

Full-time employees at heart of tourism industry in Romania

Structure of employment

0

10

20

30

40

50

60

70

80

90

100

RO HR BG SK CZ HU PL AT

0

10

20

30

40

50

60

70

80

90

100

Full-time Part-time

RO

Source: Eurostat

Employees make up more than 95% of

total employment in Romania, while in

the rest of the countries, self-employed

persons are more visible (10-18%);

particular interest should be paid to

developing extra-seasonal activities in

Romania, considering the high rate of

employees and relatively short summer

season.

0

10

20

30

40

50

60

70

80

90

100

RO BG HU PL SK AT HR CZ

0

10

20

30

40

50

60

70

80

90

100

Employees Self-employed persons

RO

Generally, the split between full-time and

part-time reflects the overall employment

in the economy; Romania, Croatia and

Bulgaria are on the top end of the full-

time range, while Austria, with more than

30% part-time employment, demonstrates

greater labor force flexibility.


16/24

16

1

2

3

4

5

6

7

RO PL CZ HU SK BG HR AT BG RO SK PL HU CZ HR AT

% of total

0

200

400

600

800

1,000

1,2001,400

1,600

1,800

2,000

2,200

2,400EUR/month

RO RO

Education in tourism across region

Source: Eurostat

Tourism employment in Romania well below EU average

Employment in tourism Compensation in tourism

0

10

20

3040

50

60

70

80

90

100

BG PL HU HR AT SK CZ RO

0

10

20

3040

50

60

70

80

90

100

Tertiary education Secondary education Primary education

RO

Secondary education is front and center

in the tourism industry; Romania,

however, follows a slightly different

pattern than most of the countries underreview, with primary and secondary

education accounting for more than 85%

of the total (the average stands at 80%).

Tourism employment (hotels and

restaurants) holds around 1.8% of the

total economy in Romania, which is wellbelow the EU average (~4%); Romania

and Bulgaria display the lowest monthly

compensation paid to workers, while

Croatians are almost 3x better paid.

Source: Eurostat

Average

Average.


17/24

17

Source: Eurostat

Average seniority with same employer

0

10

20

30

40

5060

70

80

90

100

PL SK CZ HU RO AT BG HR

0

10

20

30

40

5060

70

80

90

100

15-34 35-54 55+

RO

Source: Eurostat

Employment by age

Unlike EU, permanent jobs in tourism are commonplace inRomania

0

2

4

6

8

10

12

14

RO HU CZ SK BG PL HR AT BG RO HU CZ SK PL AT HR

months

0

2

4

6

8

10

12

14

16yearsLess than 2 years 2 years or over

RO RO

On the EU level, the tourism sector is

less stable than the rest of the market in

terms of the nature of the job

(permanent/temporary); Romania standsout with a permanent job rate in tourism

of ~94%, well above the EU average

(73%); in Bulgaria, permanent jobs

account for only 76%.

Tourism usually offers opportunities for

young people; the workforce aged 15-34

account for around 47% of total tourismemployment in Romania, slightly above

the EU level; the top end group (55+),

however, has a much lower share and

this holds true for all of the countries in

the panel.


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18

Accommodation infrastructure significant room forimprovement in Romania

No. of establishmentsfor every 10tsd inhabitants Type of accommodationestablishment

Source: Eurostat

0

2

4

6

8

10

12

14

AT CZ SK HR HU BG RO PL RO BG HU AT CZ SK HR PL

0

10

20

30

4050

60

70

80

90

100

Hotels Other collective establ.

//

22

24

26

RO RO

Source: Eurostat

No. of beds per hotel and other collective establishments

0

50

100

150

200

250

300

HR BG HU PL CZ SK RO AT HR HU RO PL BG CZ SK AT

0

50

100

150

200

250

300

AverageAverage

RO RO

Hotels Other collective establishments

Density of tourism establishments is

almost 11 times lower in Romania than in

Austria, which means that there is

enough room for improvement in termsof accommodation capacity; hotels are

predominant in Romania, holding around

90% of total tourism establishments.

Big hotels are commonplace in Croatia

and Bulgaria, where the number of beds

per unit is well above the average of the

group countries; for other collective

establishments (holiday dwellings with

limited hotel service, camp-sites, hostels,

etc.), the number of beds is higher than in

the case of hotels.


19/24

19

0

2

4

6

8

10

12

14

AT HR CZ BG SK HU PL RO

0

2

4

6

8

10

12

14

Average 2006-2010

RO

0

10

20

30

40

50

60

70

80

90

100

AT

HR

CZ

PL

RO

HU

SK

BG

HR

AT

BG

RO

CZ

HU

PL

SK

AT

CZ

PL

SK

HU

RO

BG

HR

0

10

20

30

40

50

60

70

80

90

100Total (monthly average) July-August December-January

RO

RO

RO

Source: Eurostat

Net occupancy rates - % (NOR)

Note: NOR of bed places/month = overnight stays/(bed

places x no. of days when bed places are available for use

Tourism intensity (tourism nights/inhabitant)

Source: Eurostat

Romania should make most of its key strengths in tourism

Although Croatia and Bulgaria sit pretty

during the peak season (July-August) in

terms of net occupancy rates, Romania

comes in fifth overall, which reflects the

countrys bigger potential for tourism

activity (compared with Bulgaria) in other

periods of the year.

Except for Austria, Croatia and the Czech

Republic, tourism intensity in the rest of

the countries is well below the average; a

highly diverse natural landscape

combined with historical sightseeing and

specialized tourism (healthcare, fishing,

hunting) could be key ingredients for

pushing Romanian tourism one step

further.


20/24

20

100

105

110

115

120

125

130

135

140

RO HR BG PL SK HU CZ AT

100

105

110

115

120

125

130

135

140

Package holiday and accomodation CPI

RO

Accommodation prices in Romania rose significantly in lastfive years

Source: Eurostat

Share of accommodation services in CPI basket

0

2

4

6

8

10

12

14

16

AT CZ BG HR HU RO SK PL

0

2

4

6

8

10

12

14

16100

98

.

.

100

RO

98

/ / / /

.

.

Source: Eurostat

Price development

The share of accommodation prices

within the consumer basket varies across

the map; Romania is third to last in this

ranking with a share of only 0.9%,

according to Eurostat, while Bulgarias

propensity towards accommodation

services stands at 2.1%.

Romania has seen the quickest increase

in accommodation prices over the last

five years; transportation fees and food

prices, significantly impacted by a

substantial FX pass-through, stood

behind the less favorable trend seen in

accommodation prices in our country.


21/24

21

2,528467Other resorts*

280230Mountain resorts

6,993258Seaside resorts8122,169Capital

10,6133,124Total (tsd)

BGRO

71 mm64 mmPeak summer months**

472 mm396 mmYearly quantity

Precipitation

17C18 C-min.

27 C26 C-max.

Peak summer months:**

13.4 C13.2 CAnnual average

Temperature

VarnaConstanta

Note: *Other resorts are places withattractive characteristics (e.g. climate,cultural or historical monuments, etc.),riverside and lakeside areas, healthspas and other places that cannot beclassified into any of the above-mentioned resorts.

Note: ** July and August

Nights spent by foreign tourists by type of destination Weather conditions

Romania vs Bulgaria: foreign tourists preference for visitingBulgaria is not influenced by climate conditions

0/-2C-3/-5

CWinter season

21 C22-24 CSummer season

BGROAir temperature

Weather conditions at seaside

Romania and Bulgaria are two countries withsimilar weather condition; the higher number of

foreign tourists seen in Bulgaria compared to

those in Romania was not influenced by climate

conditions.

Source: weather.com

Source: NIS Romaniaand NSI Bulgaria


22/24

22

0

10

20

30

40

50

60

70

80

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Romania Bulgaria

FDIs (stock)/capita - EUR Grossincome /capita - EUR (2006-2010)

7 times more 7 times more

FDIs and income

Romania vs. Bulgaria: 7 times less FDIs/capita in Romania, 7times less gross income from tourism/capita

Source: Eurostat

With average GDP/capita that is 1.3 times

lower than Romania, Bulgaria manages to

earn seven times more per capita from

tourism activity than Romania.

If weather conditions are similar in both countries, while the natural landscape tips the scale

in favor of Romania, then what sets Bulgarian tourism apart from Romanias?

In nominal terms, income from tourism in

Bulgaria amounted to almost EUR 13bn

during 2006-2010m (Romania x 2.4).

Earlier and quality privatizations in tourism top foreign investors;

Better transfer of know-how and more efficient advertising;

Higher FDI inflows and better absorption of tourism-related EU funds;

Arrivals at Bulgarian tourist facilities are 1.5 times higher than in Romania.

Winning combination between tour operators and foreign investors;


23/24

23

Areas that should be further improved

Source: World Economic Forum

Index 2011 Air transportinfrastructure

Ground transportinfrastructure

Tourisminfrastructure

Affinity for

travel &tourism

Naturalresources

Culturalresources

1. Switzerland 1. Canada 1. Hong Kong SAR 1. Austria

Cyprus

Italy

1. Lebanon 1. Brazil 1. Sweden

. . . . . . .

. . . . . .

. . . 6. Bulgaria . . .

. . . . . .

. . . . . .. . . . . . 37. Bulgaria

. . . 38. Romania . . .

. . . . . . .

. . . . . . .

. . . . . . 41. Romania

. . . . . . .

. . . . . . .

48. Bulgaria . . . . . .

. . . . . . .

. . . . 51. Bulgaria . .

. . . . . . .

. . . . . . .

63. Romania . . . . . .

. . . . . 78. Bulgaria .

. . . . . . .

. . . . . . .

. 81. Romania . . . . .

. . . . . . .

. 89. Bulgaria . . . .

. . 90. Bulgaria . . . .

. . . . . . .

. . . . . 94. Romania .

. . . . 95. Romania . .

. . . . . . .

. . 101. Romania . . . .

. . . . . . .

. . . . . . .

139. Chad 139.Lesotho 138. Paraguay 139. Rwanda 139. Angola 139. Lebanon 139. Timor Leste


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BCR raport turism