Market analysis of tourism 2006-2007

Tourism 2008:2 Market analysis of tourism 2006-2007 1. Summary New method The results of a new market analysis of tourism with figures for the years 2006 and 2007 are hereby published. The analysis has been conducted by Statistics Greenland in cooperation with Air Greenland and the Greenland Airport Authority. The analysis is based on a data acquisition method which was introduced in 2006. The method does not ensure that all tourists on commercial airlines receive a questionnaire. Statistics Greenland is not currently able to assess the degree of coverage of the random sample and it is therefore not possible for Statistics Greenland to make an estimate of how many tourists in total visited Greenland in 2006 and 2007. Work is being done to improve the method so that from 2009 it will be possible to make an accurate estimate of the total number of tourists travelling by commercial airline. The figures in the publication are based on the questionnaire which since the beginning of 2006 has been handed out by the personnel at check-in to tourists departing Greenland on commercial flights. 19,258 and 19,868 questionnaires were handed out to tourists (nonresident) in 2006 and 2007 respectively. Of these, 9,670 and 9,878 questionnaires respectively were completed and returned to Statistics Greenland. The rate of response is thus around 50 percent in both years. This is normally regarded as a high rate of response and means that the results that appear in the publication should be regarded as relatively accurate. A degree of statistical uncertainty is, however, still associated with the figures. The new survey generates new knowledge. Information is now available on tourists’ expenses during their stay broken down in relation to food and drink, entertainment and excursions, gifts, etc., and transport during their stay. This information enables each tourist’s fiscal consumption per day to be calculated during their stay. In addition, tourists are asked to rate the most interesting aspect of their stay on a scale from 1 (lowest) to 5 (highest), and on the same scale to specify any wishes with regard to a possible future stay in the country. The new figures reveal that: Tourists spent an average of approximately DKK 2,500 during their stay. This corresponds to a daily spend of approximately DKK 250. In general, tourists rated their stay at 3.7, with Greenland’s nature as the top-scorer at 4.7. The major wishes of tourists with regard to a possible stay in Greenland in the future are opportunities to go on new excursions and to enjoy new experiences. High rate of response New knowledge Previous knowledge updated The survey has also enabled certain items of information to be updated with regard to how the make-up of tourists can be broken down in terms of nationality, age, type of accommodation, etc. From the figures, it can be seen that: The majority of tourists - in fact approximately 60 percent - are from Denmark Half of the tourists are aged 50 or more Half of the tourists visited Region Mid The majority of tourists are on holiday or visiting friends and family Private accommodation is the dominant type of accommodation 2. Tourism in 2007 2007 In this section the main results of the market analysis of tourism 2007 are shown. The data which makes up the basis for the figures can be found in tables in section 4. It should be noted that not all questions are answered in the questionnaires returned. Several of the figures shown will therefore contain a residual group designated Not specified. Tourism exhibits a clear seasonal pattern, cf. figure 1. The months of July and August represent the high season and during these months almost 8,000, or approximately 45 percent, of all questionnaires were handed out. In the two adjacent months, June and September (the so-called shoulder season), the number of questionnaires handed out stood at approximately 4,500, or around 25 percent of all questionnaires handed out. In the other months the number of tourists flattened out. Questionnaires handed out broken down by month 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Ja n Feb Ma r Apr Ma y Jun Jul Aug Sep Oct Nov Dec Questionna ires Season Figure 1 Page 2 Markedsanalyse af turismen 2006-2007 Nationality Approximately 60 percent of the tourists were Danish, cf. figure 2. German, North American and British tourists each represented some 5 percent of the total. Tourists broken down according to nationality Figure 2 60% 50% 40% 30% 20% 10% 0% Denmark Germany US A UK France Taiwan Other Age distribution The age distribution among the tourists surveyed can be seen in figure 3. As can be seen, around half of the tourists are aged 50 or over. Tourists broken down according to age 30% 25% 20% 15% 10% 5% 0% ar s ar s ar s ar s ar s ar s ye a 60 + ye ye ye ye ye ye rs Figure 3 09 19 29 39 49 10 - 20 - 30 - 40 - Markedsanalyse af turismen 2006-2007 50 - 59 Page 3 Destination region The majority of tourists, around 50 percent, stayed in Region Mid, cf. figure 4. This was followed by 27 percent who stayed in Region East. In section 3 the division of towns in the various regions is specified. Tourists broken down according to region in which they stayed Not specified 2% Region East 27% Region South 4% Figure 4 Region North 1% Region Mid 49% Region Disko 17% Purpose The purpose of the trip to Greenland can be seen in figure 5. It can be seen that almost 60 percent of tourists visit Greenland with an actual holiday as their primary purpose. Approximately 15 percent of tourists are on a business trip. The remaining tourists are visiting friends and family, conferences, etc. It should be noted that many tourists often combine business and holiday, etc., and it can sometimes be difficult for the individual tourist to separate these. Tourists broken down according to purpose of the trip 60% 50% 40% 30% 20% 10% 0% a lid Ho y es sin Bu s ily s end fri and e t sp No ied cif her Ot v dy Stu isit en f er on C ce Figure 5 m Fa Page 4 Markedsanalyse af turismen 2006-2007 Type of accommodation Private accommodation with friends and family is the dominant type of accommodation and represents approximately 36 percent of accommodation in the sample, cf. figure 6. Hotels, seamen’s hostels, other hostels and youth hostels accounted for 26 percent of overnight stays. Tourists broken down according to type of accommodation Figure 6 Other 11% S hip/cruise 6% Private 36% Own tent 10% Tent/hut 3% Hostel 8% Hotel/S eamens Hostel 26% Daily consumption From 2006 onwards tourists were asked to provide an estimate of how much they spent during their stay, broken down into food and drink, entertainment and excursions, gifts, etc., and transport during their stay. It should be emphasised that this estimate does not include the cost of the flight to Greenland or expenses related to overnight accommodation at hotels, etc. For both 2006 and 2007 the total average cost of the stay was approximately DKK 2,500. At the same time, tourists spent an average of approximately 10 days in Greenland. This means that the average amount spent per day (daily consumption) can be calculated as approximately DKK 250. It should be underlined, however, that there are considerable variations within this average. Markedsanalyse af turismen 2006-2007 Page 5 Rating As a new initiative, tourists were asked to rate their stay with regard to a number of categories on a scale from 1 (lowest) to 5 (highest), cf. figure 7. The overall rating of the stay was 3.7. It was Greenland’s nature in particular that achieved a high rating and more than 90 percent of tourists rated this item highest. Rating of the stay Population Figure 7 High Medium Low High Medium Low Weather History High Medium Low Wildlife High Medium Low Culture High Medium Low High Nature Medium Low 0% 20% 40% 60% 80% 100% Page 6 Markedsanalyse af turismen 2006-2007 Wishes for the future Finally, tourists were asked to indicate their wishes with regard to a possible stay in the future, cf. figure 8. The primary requirement was for new excursions. Wishes with regard to a stay in the future Ma jor Medium Minor Ma jor Medium Minor Ma jor Medium Minor Ma jor Medium Minor Ma jor Medium Minor Ma jor Medium Minor 0% 10% 20% 30% 40% 50% 60% 70% 80% Figure 8 New excursions Better overnight facilities Lower prices Visit another region Better service Experience another season Markedsanalyse af turismen 2006-2007 Page 7 3. Definitions and methods Definition Market analysis of tourism is based on the broad, internationally recognised definition of tourism that is used by the World Tourism Organisation (WTO). According to this definition, tourism: comprises the activities of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited. WTO’s definition does not only encompass people travelling on holiday, but also people visiting a country in connection with business or a course of study. Tourists are thereby also visitors who are staying in a country with the purpose of taking part in conferences, courses and study activities. Furthermore, the definition covers people travelling with the purpose of visiting friends and/or family. Information concerning tourists that arrive in Greenland by ship, primarily cruise ship tourists, is not included in the publication. Before 2006 Up until 2005 the method for acquiring data was as follows: All travellers – both the resident population and tourists – departing from Greenland were given a questionnaire at check-in. The completed questionnaire was to be put into boxes provided prior to boarding, and by submitting the questionnaire, the traveller concerned was automatically entered in a prize draw. Typically, approximately 35-40 percent of the questionnaires were completed and submitted. By using the distribution between residents and tourists among the completed questionnaires received and applying this to the total number of persons departing (based on the PAX figure), an estimate was made of the total number of tourists. This method was subject to criticism, however, since it is to be expected that tourists are more likely to answer the questionnaire than the resident population. If this assumption is correct, it means that the figure for the total number of tourists has been overestimated. From 2006 onwards the data acquisition method was thus revised. The new method is in principle designed as a total count of the overall number of tourists, whilst other information continues to be based on a random sample. All travellers departing Greenland are asked at check-in whether they are residents of Greenland or not. Only non-residents receive a questionnaire and are requested to put the completed questionnaire in the boxes provided prior to boarding. The questionnaires are given a serial number which enables the total number of questionnaires for a particular period to be compiled. The number of questionnaires handed out will ideally correspond to the total number of tourists. Since not all questionnaires are returned, information about gender, age, nationality, etc., is regarded as being sample-based. In addition to the revision of the method, questions were also added concerning the tourists’ daily fiscal consumption, which is a key piece of information when looking to develop an economic module for tourism, as well as qualitative questions concerning the tourists’ experience of their stay and wishes with regard to a possible stay in the future. It has been found that not all tourists receive a questionnaire, and therefore the method cannot be expected to provide an accurate total count of tourists. In 2006 and 2007, 19,258 and 19,868 questionnaires respectively were handed out to tourists. Of these, 9,670 and 9,878 questionnaires respectively were completed and returned to Statistics Greenland. The rate of response is thus around 50 percent in both years. This is normally regarded as a high rate of response and means that the results that appear in the publication should be regarded as relatively accurate. A degree of statistical uncertainty is, however, still associated with the figures. Division of towns by region: – – – – – Region South: Nanortalik, Qaqortoq, Narsarsuaq, Narsaq, Ivittuut and Paamiut Region Mid: Nuuk, Maniitsoq, Sisimiut and Kangerlussuaq Region Disko: Kangaatsiaq, Qasigiannguit, Aasiaat, Ilulissat and Qeqertarsuaq Region North: Uummannaq, Upernavik and Qaanaaq Region East: Illoqqortoormiut, Tasiilaq and the settlement at Kulusuk, where the airport is situated. After 2006 Estimates Applied division of regions Page 8 Markedsanalyse af turismen 2006-2007 4. Tables Table 1 Number of questionnaires handed out broken down by month Jan 680 Feb Mar Apr May Jun Jul Aug Sep 2,039 Oct 779 Nov 590 Dec 435 883 1,407 1,559 1,235 2,580 3,925 3,756 Table 2 Tourists broken down according to nationality Denmark 5,717 UK 368 Germany 593 France 259 Taiwan 70 USA 550 Other 2,061 Total 9,618 Table 3 Tourists broken down according to age 0-9 years 26 10-19 years 283 20-29 years 706 30-39 years 1,231 40-49 years 50-59 years 60+ years 1,317 1,607 2,038 Table 4 Tourists broken down according to destination region Region South 426 Region Mid 4,719 Region Disko 1,603 Region North 106 Region East 2,599 Not specified 165 Table 5 Tourists broken down according to purpose of the trip Holiday 5,244 Family and friends Study visit 1,004 232 Business Conference 1,525 225 Other 335 Not specified 466 Total 9,031 Table 6 Tourists broken down according to type of accommodation Hotel/ Seamen’s Hostel 20,505 Ship/ Hostel 6,373 Tent/hut 2,136 Own tent 7,667 cruise 4,947 Other 8,988 Total 79,233 Private 28,617 Table 7 Rating of the stay Low Nature Culture Wildlife History Weather Population 390 1,281 1,579 1,518 1,431 1,088 Medium 177 1,741 1,380 1,774 1,539 1,647 High 6,760 3,411 3,134 2,855 3,395 3,585 Total 7,327 6,433 6,093 6,147 6,365 6,320 Table 8 Wishes with regard to a possible future stay Low New excursions Better overnight facilities Lower prices Visit another region Better service Experience another season 656 2,208 1,164 669 2,203 804 Medium 655 777 1,031 780 891 841 High 3,663 818 2,467 3,523 776 3,054 Total 4,974 3,803 4,662 4,972 3,870 4,699 Markedsanalyse af turismen 2006-2007 Page 9 Key: … .. . 0 * Information not available Information too unreliable to be quoted Figures by their very nature not available Less than half of the unit used Zero Provisional or estimated figure For more information, please contact Gitte Lynge Rosing E-mail: glmi@stat.gl Market analysis of tourism 2006-2007:1 2 July 2008 Statistics Greenland Postboks 1025 · 3900 Nuuk Tel.: +299 36 23 60 · Fax: +299 36 23 61 www.stat.gl · e-mail: stat@stat.gl