Entering the European market for sun and beach travel products

Sun and beach tourism has a large market in Europe, particularly from Germany and the UK. However, it is a selective market and the sustainability of coastal resorts is very important. Besides European tour operators, Fully Independent Travelers (FITs) are the main market for sun and beach travel products in developing countries, and it is a competitive market. There is a wide range of accommodations and activities on the market, such as immersive experiences and community-based tourism (CBT). There are plenty of opportunities for sustainable, responsible businesses to introduce their product to the market.

1. What requirements must sun and beach travel products comply with to be allowed on the European market?

European tour operators selling sun and beach products on the market are bound by strict regulations to ensure the safety of their travellers and to protect them financially. You should understand what these regulations are.

What are the mandatory requirements that buyers have?

The requirements that European tour operators have for sun and beach tourism travel products in developing countries cover the following:

• The European Package Travel Directive
• General Data Protection Regulation (GDPR)
• Liability Insurance and Insolvency Protection

As a first step, you should read the CBI’s What requirements must tourism services comply with to be allowed on the European market and familiarise yourself with the comprehensive details of legal, non-legal and common requirements. The sub-section entitled COVID-19 outlines measures taken by the European Commission (EC) to help support the relaunch of travel and tourism across Europe and how to keep abreast of travel advice being given to European residents across the continent.

COVID-19: Establishing Safety Standards for Tour Operators

The effects of the COVID-19 pandemic continue to have a considerable impact on the tourism industry worldwide. Tourism has begun a slow recovery, but confidence among European travellers remains low, and many national governments continue to advise against all but essential travel.

In September 2020, the World Travel & Tourism Council (WTTC) launched a new set of measures to rebuild consumer confidence, reduce risk and encourage the resumption of travel. The measures were developed in collaboration with other partners, including the Adventure Travel Trade Association (ATTA), which regularly undertakes research among its membership base and global community of operators in the field of adventure tourism. Some of the measures developed include:

• Reducing participant capacity to allow for social distancing
• Ensuring that activity difficulty levels do not exceed ability, to decrease the need for rescue services
• Providing clear, consistent and up-to-date communication on health and hygiene protocols
• Providing clear information on protocols such as wearing of face masks, hand hygiene guidance and social distancing requirements in advance and on arrival
• Encouraging online purchases wherever possible
• Encouraging guests to handle their own equipment for the duration of the trip
• Limiting queuing and physical contact wherever possible

You can download WTTC’s Tour Operators - Global Protocols for the New Normal for more details about the measures and decide whether to apply for the ‘Safe Travels’ Stamp Application.

For the remainder of this report, all discussion, insight and advice has been provided on the basis of travel in normal circumstances.

What are the additional requirements that buyers have?

Establishing Standards

It is of great importance for European tour operators that the local operators they do business with are well managed, professional and reliable. The products they sell must be of high quality and suitable for their customers. They will conduct regular assessments of the standards for accommodations, food and beverage outlets and any activities provided.

ISO is an independent, non-governmental, international organisation with a membership of 164 national standards bodies. ISO standards are voluntary, consensus-based, market-relevant International Standards to ensure that products and services are safe, reliable and of good quality. They help companies to access new markets and facilitate trade by improving standards and offering continuity between organisations.

There are a number of standards that you could consider for a coastal or lakeside tourism business including:

• ISO13009:2015 establishes general requirements and recommendations for beach operators that offer tourist and visitor services.
• ISO21401:2018 specifies environmental, social and economic requirements to implement a sustainability management system in accommodation establishments in the tourism sector.
• ISO20410:2017 sets out the minimum service level and equipment requirements for bareboat charters offered for inland, coastal and/or offshore waters.
• ISO17679:2016 establishes the service requirements of a wellness spa, the main supporting processes and the quality of service to be provided to the client.

What are the requirements for niche markets?

Sustainability in coastal destinations

Coastal and marine tourism is a major economic sector for destinations with accessible and attractive coastlines. However, many coastal and marine tourism activities contribute harmful or negative environmental and social impacts on natural resources and local communities. As tourism is highly dependent upon the quality of natural resources, it has become even more important that all tourism activities are sustainable. Many destinations are working towards becoming a Blue tourism destination, whereby their coastal and marine tourism activities are low impact and focus on the promotion of local communities and the conservation of natural resources. This infographic shows how healthy oceans play a crucial and valuable part in attracting tourists from all over the world and in driving local economies, providing they are sustainably managed.

Chart 1: Mapping Ocean Wealth – Tourism

Source: The Nature Conservancy

This report, Blue Tourism – The Transition Towards Sustainable Coastal and Maritime Tourism in World Marine Regions provides a detailed examination of the sector and seeks to better understand the challenges and impacts of tourism on the fragile coastal environment. You should read this, so you fully understand the impact of tourism in your destination.

As a result, to attract the European market, sustainability should be at the heart of your tourism business. Waste mountains and millions of tonnes of single-use plastics polluting the world’s oceans and causing serious damage to marine life are widely reported in Europe. Images of formerly pristine beaches in remote destinations that are overwhelmed by tides of rubbish have become commonplace, as are pictures of marine life tangled in fishing netting or mistaking a piece of plastic for food. Reef bleaching is another serious issue, a consequence of climate change and the increased use of sunscreens widely used by tourists.

As a result, European travellers are concerned about sustainability and are increasingly likely to choose destinations that actively promote their sustainable and responsible credentials.

Sustainable initiatives that you should consider include:

• Adopt sustainable building practices and use local, rapidly renewable and/or recycled materials wherever possible.
• Adopt sustainable energy sources, such as solar and wind power. Rely on natural light and ventilation where you can.
• Use eco-friendly products throughout your operations, such as non-toxic cleaning and laundry products.
• Implement suitable waste separation disposal practices. You may be able to generate income from recycling and/or making handmade gifts from discarded plastics or other products.
• Source food and other consumables locally, wherever possible. This could include growing your own fruit and vegetables and buying produce from local sources.
• Employ local communities/people wherever possible. Encouraging your visitors to engage in community-based tourism, such as visiting markets and festivals, visiting local villages or taking part in cooking classes, is a sustainable form of tourism and benefits the economy of local communities.
• Provide low-carbon and low-impact activities such as tree climbing or ziplining.
• Make sure you tell your visitors how to dispose of their rubbish. Provide adequate waste bins that allow for separation. If your location doesn’t have a suitable waste management system, provide visitors with a bag to collect their rubbish and take it away with them.
• Implement regular beach clean ups.
• Ensure that any partners you work with adhere to your responsible tourism code.
• Consider setting up a responsible visitor code and promote it on your website to encourage visitors to look after your environment and engage with local communities. See this example from Turtle Bay Resort in Kenya, which offers its visitors tips on How to be a responsible tourist.
• If your business is located near a coral reef, encourage your visitors to use sunscreens that are free from chemicals that harm the reef. Make sure you sell them too and add a link on your website to a company that sells them, so your guest can buy suitable products before they travel, such as this one, The Sunscreen Company.
• Consult Green Fins, an initiative managed by the Reef-World Foundation, which encourages diving and snorkelling centres, local communities and governments to work together to reduce their environmental impact. Green Fins has also published a range of conservation actions that could be adopted during the necessary downtime the COVID-19 pandemic has caused for operators. It has a range of useful resources on its website, like the posters below, that you could consult and/or download.

Chart 2: Green Fins’ posters to help tourists change their habits
 

Source: The Reef-World Foundation/Green Fins

Accommodation provision

There are a wide range of accommodation types for tourists in the sun and beach sector, and they vary in terms of service provision, ranging from basic (hostels), resorts (purpose built) to luxury (boutique). Beach bungalows are common and popular choices among the European traveller market, who seek unique experiences in developing countries. Sustainability is important and adopting sustainable initiatives for the construction of buildings is outlined in the section above, Sustainability in coastal destinations.

The quality of accommodations is important to the European traveller:

• Tourists on a budget do not expect luxury fittings or amenities. Accommodation can be simple, but a good standard of cleanliness is vital.
• It is important to be clear about what you will provide, such as bed linen, and what you won’t, such as towels. You may decide to provide towels for a fee.
• For those on high-end holidays, the standards for accommodations and facilities need to be higher, with a better standard of luxury bathrooms and fittings, and purpose-built accommodation.

Providing activities in a coastal tourism business

Destinations in a coastal setting, either sea/ocean, river or lakeside, offer local tour operators many opportunities. The setting of the destination, for instance a lagoon or wild surf, along with the type of beach, will have an impact on what type of business would work well. Environmental factors such as weather conditions are also important considerations. Additional intangible features such as a forest, cliff or tropical backdrop, or an offshore coral reef with dive sites have the potential to add value to a destination in the eyes of the potential visitor.

The FIT market is likely to seek out immersive experiences while staying at a beach resort, such as community-based tourism (CBT) activities. Examples of CBT activities include visiting villages, taking part in festivals, visiting local markets and other food/drink producers such as coffee/tea/wine plantations, and so on. Providing access to a range of local activities will enhance the experience for your FITs as well as provide sustainable economic benefits for the local communities involved.

The chart below gives some indication of the variables, including CBT, that are commonly associated with coastal tourism activities.

Chart 3: Common Coastal Tourism Activities

Source: Acorn Tourism Consulting

2. Through what channels can you get sun and beach travel products on the European market?

How is the end-market segmented?

Sun and beach tourism attracts a large market from Europe across many consumer segments. The market for sun and beach tourism has been shown to be strongest in Germany and the UK, according to the CBI’s Market Analysis Report on sun and beach tourism. Broadly, the market can be segmented into two core groups of tourists – traditional holidaymakers and FITs (fully independent travellers):

Chart 4: Market Segmentation of Sun and Beach Tourism

Source: Acorn Tourism Consulting

For local operators of sun and beach travel products in developing countries, the FIT market is your key market. To find out more about the FIT market, you should read the CBI study What are the opportunities in the European FIT tourism market.

Through what channels do sun and beach travel products end up on the end-market?

FITs often find sun and beach travel products from developing countries via their own independent websites, on OTAs (online travel agencies) and travel portals. Some sun and beach operators also sell their travel products through specialist tour operators. Traditional holidaymakers almost always book through a tour operator, travel agency or, less often, directly with the resort.

Chart 5: Sun and Beach Tourism Sales Channels
Source: Acorn Tourism Consulting

You should consider the following when preparing your travel product for the European market:

• Your own website – allows you to communicate fully with your potential buyer. Most FITs today are avid users of technology and spend time researching trips. Using images and videos, and interesting copy that informs your guest of all the sustainable actions you promote alongside your tourism products, will attract the European FIT. You should make sure to include testimonials and reviews, as FITs rely heavily on word of mouth.
• OTAs/Travel Portals – sell a range of accommodations, trips, experiences directly to FITs. Common for sun and travel products are the major OTAs, Booking.com, Expedia and Orbitz, which is part of Expedia. On the Beach is a specialist OTA with European branches in the UK, Sweden, Norway and Denmark.

What is the most interesting channel for you?

Establishing your own website should be a priority for you as a sun and beach local operator. You can find out more about setting up your own website in the CBI study How to be a successful tourism company online for detailed information on improving or creating your own website.

You should also work with the OTAs. To find out more about working with OTAs, consult this Arival Guide, Working with OTAs, and CBI’s Tips for organising your tourism services export to Europe.

To work with specialist tour operators, see the CBI’s Doing Business with European tourism buyers for tips on working with European tour operators.

3. What competition will you face in the sun and beach market?

Which countries are you competing with?

For now, European sun and beach tourists are travelling to domestic locations or to short-haul destinations within Europe, visiting countries they are able to travel to without any quarantine restrictions. At the time of writing (September/October 2020), many countries in Europe were experiencing an increase in COVID-19 cases, which is leading to increased restrictions on personal freedom. Many European governments continue to advise against all but essential travel, and travel to many countries is subject to entry restrictions. During the 2020 summer holidays, domestic holidays remained the most popular choices across Europe, although there was some movement across borders, such as Britons who travelled to France and Spain, and Germans who travelled to the Netherlands. As the region moves into the winter season, it is likely there will be limited travel to long-haul destinations until the spring/summer season in 2021, when the pandemic has hopefully diminished.

Sun and beach destinations are found all over the world, and developing countries are home to some of the best beaches that appeal to those FITs seeking a destination away from mass-market sun and beach destinations. However, it is a competitive sector, on account of the numerous destinations and wide range of less-developed beaches to choose from. For many FITs, destinations that are harder to reach are more appealing, and those that offer additional experiences such as CBT are also likely to be attractive.

Taking into account the three key regions of Africa, Asia and Latin America, you should consider the main competing destinations for sun and beach to be:

• Indonesia
• Kenya
• Mexico
• Nicaragua
• Tanzania
• Thailand

Indonesia

Indonesia is well known for its pristine beaches and numerous islands, and more than 9.3 million tourists visited the country for leisure purposes in 2017. Its sun and beach offer combines well with its exceptional cultural offer, alongside some of the world’s best diving sites and other natural attractions. With so many islands in this tropical archipelago, the foreign tourist is spoilt for choice and the islands of Flores, Lombok and Bali have some of the best beaches. However, tourism suffered as a result of multiple natural disasters in 2018, which included a volcanic eruption in Bali, earthquakes in Lombok, an earthquake and tsunami in Central Sulawesi, and a further tsunami in Banten. If your business is located in an area where natural disasters are a risk factor, you must have a risk management plan in place (see tip below).

Kenya

Kenya is best known for its iconic wildlife, but the country’s unspoiled beaches on the coast of the Indian Ocean are often visited in conjunction with a safari. The product appeals to a wide range of sun and beach tourists, with mainstream products centred around Mombasa and Malindi where water sports, diving, marine and wildlife watching, and deep-sea fishing are popular among groups and families. Beach destinations in the north and south are more remote, and there are a range of luxury resorts that appeal to honeymooners. The island of Lamu has a distinct, easy-going culture that offers a distinct sun and beach experience.

Mexico

Mexico’s extensive coastline features numerous beaches, with plenty of variety – some are surrounded by jungles or ancient ruins, some are good for surfing, others for swimming and snorkelling. Besides the well-known tourist destinations, there are also numerous lesser-known beach destinations, which offers opportunities for local operators. Adventure activities in combination with sun and beach are more common in the lesser-known destinations such as Tulum in the Riviera Maya, which is surrounded by ruins.

Nicaragua

Nicaragua is an emerging adventure destination in Central America, offering its sun and beach product on both the Caribbean Sea in the east and the Pacific Ocean in the west. It also has one of the largest inland lakes in the world, Lake Nicaragua, and crater lakes such as Laguna de Apoyo. Lake Nicaragua and its environs are popular for water-based activities such as fishing and kayaking. Surfing on ocean waves is the main activity on the Pacific coast at San Juan del Sur while the Corn Islands in the Caribbean Sea have coral reefs, fishing and long, white sandy beaches, which are listed as some of the best beaches in the world. Most leisure visitors to Nicaragua also take part in adventure activities in addition to sun and beach activities.

Tanzania

Like Kenya, Tanzania is best known for its safari trips. However, the offshore islands of Zanzibar, Mafia and Pemba have become important sun and beach destinations. Zanzibar also offers a distinctive cultural experience for visitors through historical Omani and Portuguese influences. Mafia Island is a renowned diving destination and Pemba Island’s secluded beaches are often combined with safari experiences on the mainland.

Thailand

Thailand has been one of the region’s leading destinations for sun and beach tourism for many decades, attracting both the backpacker and luxury tourist. Destinations for sun and beach are predominantly in the south, and islands such as Koh Samui, Koh Phang Nga and Phuket, where there are numerous facilities and activities, attract greater numbers of sunseekers. Further south, the Trang Archipelago has some of the best beaches, such as Koh Kradan and Koh Ngai, but they are more remote, time consuming to access and with fewer facilities.

However, there are many more destinations that you should consider to be your competition. Other ways to assess the competition is to identify those destinations that receive the most mentions in travel blogs and travel articles. Some of these are listed below – it is not an exhaustive list.

Chart 6: ‘Best Beaches in the World’ based on subjective travel listings