1. Tourism and Hotel
Groups in Portugal
Competitive Analysis
Work accomplished by:
Luisa Pires nº2460

2.  Excutive Summary
 Brief BackGroung
 Market analysis
 In Numbers
 Segments
 Mega events
 The hotel market
 Strategic Operations
 Emitting countries strategic
 Destination competitor
 Project for the future
 Conclusion

3. In this presentation I plan to which defined the major hotel
groups in Portugal, which its strategy of differentiation,
making an analysis of current supply.
What is the impact of Euro 2008 and the current economic
crisis in Portuguese tourism.
To analyze the competitive external environment.
And finally, analyze the tourist development in the future.

4. Portugal
• Portugal is a country on the Iberian Peninsula. Located in
southwestern Europe, The Atlantic archipelagos of the Azores and
Madeira are also part of Portugal..
• The official language is portuguese.
• Area total is 92,345km and the estimate population is 10,617,575
persons.
• The capital is Lisbon.
• The currency is Euro.
• Tourism represents 11% of GDP (Gross Domestic Product).
• Revenue more than 6 billion euros per year
• 11.5 million tourists
• 27 million visitors
• 8 million domestic tourists
• Approximately temperature in Portugal is:
Summer 30º-40º
Winter 10º-20º

5. 10 strategic tourism products and areas of supply :
Gastronomy and Cultural and Meetings and
Wines Landscape Congresses
Touring
Residential Golf Sun and Beach Health and Wellness
Tourism
City Break Nature Tourism Nautical Tourism

6. Overall average stay of tourists 2006 (in days)
Numero de turistas em 2006
Average daily spending by tourists in 2006 (Euros)
• Domestic tourism accounts for 30%.
• The emitting countries most important are Spanish, United Kingdom ,German.
• Portugal occupies the 19th in the ranking of countries with more international tourists.

7. More than 80% of the number of beds is concentrated in the
regions of Lisbon, Porto and Madeira.
The segment that is more market power is the most
expensive.
Portugal is affirming its position as a tourism destination of
excellence.

8. The number of tourists in
the years of mega events
do not increase
significantly but has
increased consecutively.
According to information
from site "tourism of
*Tourists in Portugal (million)
Portugal," :
The “Euro2004” increased the number of tourists this year but also
promote Portugal’s image as a City Break destination
and re-enhance modernity and contribute to restructuring the
offer and/or give visibility to the destination

9.  Number of tourists increased 5.1% in 2007
 Portugal received 23.7 million visits in 2007, representing a growth of 5.1 percent compared to the
previous year, according to data from the National Institute of Statistics (INE) released today.
 Last year, an increase of entries of visitors in Portugal was due, mainly, the movement of tourists
(visitors who stay at least one night in the place visited), which recorded a rise of 9.2 percent for
2006.
 Most tourists (7425 persons) came into Portugal by air, compared with 4896 tourists who entered
the country by the border road.
"To increase the air at the border [more 10.5 percent in 2007, compared to last year] has certainly
contributed to creation of new airlines to national airports and the strong momentum of low-cost
flights," states the report by INE .
 According to the institute, "during the year 2007, the three major markets issuers of tourists were
from Spain, the UK and France", but "the markets issuers that have contributed most to the
increase in tourists were from Switzerland, the U.S. and Ireland. "
 Most tourists (72.3 percent) visited Portugal for purposes of recreation, leisure and vacation.
The also contribute to the growth of the entry of people in Portugal were the movements of
excursionists (visitors who do not overnight accommodations in the place visited), which increased
by 1.1 percent between 2006 and 2007.
 2008 was much less tourists. That can be attributed to the economic crisis. Consequently
increased domestic tourism.

10. There is still a lot of small hotels (80%) without
defined strategic plan.
The the main players are:

11.  The strategies adopted by major hotel groups can be summarized
in:
• Mergers and Acquisitions
• Franchise
• Management arrangements
• Consortia
• Joint-venture
• Sole-venture
• Licenses
To fulfill the new transformations of the market, traders felt the need
to develop ways of vertical integration;
Own networks of travel agencies, hotel chains, airline companies and
various support services to tourists;
In Portugal the travel distribution is not comparable with that of the
major markets of Europe emitters.

12. More promotion in 21 target including the domestic market, and
differentiated in function of their growth potential and Portugal's competitive positioning,
and classified into three groups:
Strategic markets - Portugal, United Kingdom, Spain, Germany and France - that should
be subject to a major promotional drive, guaranteeing a significant absolute contribution to
tourism and stimulating relative growth in the low season (October to May), higher than that in
the high season;
Markets to be developed - Scandinavian countries, Italy, United States of America, Japan,
Brazil, the Netherlands, Ireland and Belgium - where we aim to achieve significant absolute
growth;
Diversification markets - Austria, Switzerland, Russia, Canada, Poland, Czech Republic,
Hungary and China - where the objective is to increase market share, while strengthening the
notoriety of Destination Portugal.

13.  The countries making direct competition to Portugal is Spain.
 Spain has the same climate, culture very similar, is much larger
geographically, has more investors and thus have cheaper prices
 Because the main markets for Portugal are totally dominated by
Spain:
United Kingdom Germany Holanda
Portugal 2 0,8 0,5
Spain 15 10 2,5
million tourists
 Is increasingly difficult for Portugal to compete on price and quality.

15. In my opinion, firs time Portugal need to improve human resources
and good investors, broaden the range of promotional packages, the
inter-linking the entire transportation network, hotels, restaurants
and cultural activities.
Portugal has adopted a strategy of targeted regions. In each area that
has very different characteristics.
If Spain has the power to the tourist masses, Portugal must work with
niche markets worldwide.
Opt for a policy of differentiating radical.
Explore opposite segments, as 6 stars and the low cost.