Turkey and egypt pull prices and economic incentives to compete
The President of international (Spanish Confederation of hotels and tourist accommodation), Joan Molas, already warned in ’the Spanish market for Easter sales grow 20% ’, published by tourism news HOSTELTUR, Egypt pays to Russian companies 280 pounds Egyptian per person per seat (33 euros) if the flight does not reach 90% occupancy. But Turkey is not far behind in its strategy of falling prices and economic incentives, as reflected in ’ Turkey, the new giant tourist feared by Spain ’.
The Turkish Government has set a grant of 5,300 euros per aircraft chartered to keep Russian operators their flights this year, while the Egyptian has pledged to subsidize companies with 8,000 euros per aircraft if the occupation does not exceed 70%, regardless of the 280 Egyptian pounds per person to pay, as it has been know this newspaper industry sources.
In addition, as confirmed by Molas, “Turkey is offering operators up to 30% discount on contract prices for may and June, which gives as a result wholesale prices to the public up to 10% cheaper than last year”. And is that when hoteliers Turkish signed contracts for this year in 2014, they set an increase in prices of between 3% and 4% and eliminated the discount of 15% for early booking, which resulted in a rising price of between 18% and 20%, as explained by the President of CEHAT.
This rise took with him a fall of sales, especially in the German transmitter, which is the most important for the Turks, and the Russian, by the weakness of the market. In fact, according to the figures supplied by Molas, of the 2.7 million Russian tourists visited Turkey in 2013 spent 2.2 million a year later, and for this year is expected to be reduced further to 1.5 million.
Before the downturns in both markets, have chosen to offer those discounts up to 30% so that Turkey, that it was a “very important competitor for Spain”, will attract a “significant demand” for the summer.
And more taking into account that, as recognized by Molas, “German tourist does not perceive Turkey as an unsafe destination, but as a magnificent vacation country. And the equally Belgian.” Proof of this is that of the 10 million people living in Belgium, 1.5 million travellers every year with tour operator, and of them, in winter 500,000 went to Tenerife and in summer about 300,000. Now more than one million Belgians go to Turkey, by Molas concludes that the force with which the target market is consolidating “is worrying”.
Against this stiff competition, what Spain can do? The President of the employers is quite clear: “Spain does not have to compete with such offers because at beaches, in destinations like Balearic Islands, some areas of Andalusia and Canary Islands, offer the same quality or better;” in hotels, especially Canary and Balearic Islands in part and some area of the Costa del Sol, are at the same time, although the Turkish hotel plant has a maximum of 12-15 years old and that yes there are more competitive”.
But in Spain, adds, “we have some characteristics that are our major competitive advantages and where we must insist: Security;” communications, with magnificent airports, highways, and poultry; a high quality healthcare; gastronomy, far superior to hers; climate, in summer very similar; and culture and leisure, also far superior”.
Which “these seven characteristics must maintain; cannot and must enter this price war. “Among other things because before the fall of the Russian, are keeping the German and other Central-European markets, the British is rising two points about, and this year we’re recording an important recovery of the market Spanish that can perfectly complement us the fall of the Russian”.
This joined the detours by the situation in Tunisia, that “we can not quantify because we don’t know how many will be, but that will help to any area of the Balearic Islands and fundamentally to the Canary Islands, especially to Lanzarote and Fuerteventura“.