Understanding the Russian consumer A major tourism research project into how international consumers view Australia and the factors most likely to motivate them to visit the country has been undertaken by Tourism Australia. The scale and depth of the research is unprecedented and provides unique insights into consumer demand in 15 of Australia’s most important inbound markets. Insights from the work will contribute towards the industry achieving its Tourism 2020 goal – to increase annual overnight tourism spending to between A$115bn and A$140bn by the end of the decade. The research will be used to help shape the future marketing of Australia and identify opportunities to make the country’s tourism offering more attractive to overseas visitors.

Respondent Profile Gender

Age

Male

52%

48%

Female

19%

Saint-Petersburg

10%

Yekaterinburg

4%

Samara

3%

11%

Nijniy Novgorod

4%

55- 64 years

3%

Novosibirsk

3%

65+ years

0%

Rostov-on-Don

3%

Moscow Region

3%

Omsk

3%

Chelyabinsk

3%

13%

25- 34 years

44%

35- 44 years

28%

45- 54 years

Income 60.000 roubles 60.000-119.999 roubles 120.000-179.999 roubles 180.000-239.999 roubles 240.000-359.999 roubles 360.000-479.999 roubles 480.000-599.999 roubles 600.000 roubles Prefer not to answer

Living Situation

6%

Partner

5%

Parents

6% 10% 13% 13%

34%

19% 14%

Alone

5%

Relatives/family

4%

Housemates

2%

Single parent

Other living situation

Perm

3%

Others

41%

Employment Status 54%

Partner and children

8%

5%

Place of Residence Moscow City

Under 24 years

Work full time Work part time

4%

Looking for work

4%

Full time student

3%

Retired

2%

Other

2%

2%

Professional Manager Self-employed Labourer / Trade Clerical and Admin Sales Worker Community Worker Farmer Other

10%

Home duties

1%

Occupation 76%

55% 11% 7% 5% 3% 2% 1% 0% 3%

Sample size n=934

Most important factors when selecting a holiday destination (Top 5) Respondents were asked what they look for when choosing any holiday destination. A safe and secure destination

46%

A destination that offers value for money

44%

Interesting attractions to visit

40%

Great swimming beaches

37%

Good food, wine, local cuisine and produce

35%

Different and interesting local wildlife

27%

World class beauty and natural environments

26%

Friendly and open citizens, local hospitality

25%

Ease of obtaining visa

24%

Rich history and heritage

24%

A family friendly destination

21%

Spectacular coastal scenery

17%

Clean cities, good road infrastructure with clear signposts

16%

Exciting events, local festivals and celebrations

15%

Native or cultural heritage or activities

14%

Flights with no stop-overs A range of quality accommodation options Great shopping/ world class brand names Romantic destination A destination that offers the best in luxury accommodation and facilities Vibrant city lifestyle Indigenous experiences

Read as: 46% of respondents rate ‘a safe and secure destination’ as among the top 5 most important factors when choosing a holiday destination.

14% 12% 11% 11% 9% 7% 5%

Understanding the Russian consumer May 2014

How does Australia Rank? Respondents were asked to indicate which destinations they associated with the following factors. Each respondent was provided with a list in excess of 50 international destinations.

Safety and security All respondents Germany

58%

Switzerland

50%

France

46%

Italy

45%

Scandinavia

45%

Canada

45%

United Kingdom

39%

Australia

38%

Spain

37%

United States (excluding Hawaii)

29%

Read as: 38% of all respondents associated Australia with ‘safety and security’.

Elements of a ‘safe and secure’ destination Respondents were asked what constitutes a ‘safe and secure destination’.

Respondents who indicated Australia was not ‘safe and secure’ were asked why not.

A low chance of health risk

30%

A destination whose people have different beliefs to mine

40%

A low chance of terrorism

27%

Bad reports about the treatment of fellow travellers

21%

A low chance of being robbed or assaulted

21%

Lack of bad reports about the treatment of fellow travellers

A high chance of being robbed or assaulted

18%

10%

Law enforcement system with integrity that can be trusted

8%

Law enforcement system without integrity that cannot be trusted

8%

A destination whose people have similar beliefs to mine

3%

A high chance of terrorism

3%

Other (‘Unknowns’ & fear of local wildlife play a key role here)

29%

None of the above

0%

Value for money All respondents Thailand

44%

Greece

35%

North Africa

29%

Spain

27%

Italy

25%

United Arab Emirates

18%

Vietnam

16%

France

15%

Germany

15%

India

15%

Australia

7%

19th

Read as: 7% of all respondents associated Australia with ‘value for money’.

Elements of ‘value for money’ Respondents were asked what constitutes ‘value for money’ when choosing a holiday destination.

Respondents who indicated Australia was not ‘value for money’ were asked why not.

The best experiences I can afford within my budget

31%

Expensive airfares

79%

Unique / world’s best experiences that cannot be had anywhere else

22%

Low cost of living expenses (food, accomodation) in the country or region

High cost of living expenses (food, accomodation)

34%

21% High cost of travelling around

23%

Not the best experiences affordable within my budget

19%

Experiences that are not unique and can be had elsewhere

9%

Other

5%

Inexpensive airfares to the country or region Low cost of travelling around the country or region None of the above

19% 6% 1%

Understanding the Russian consumer May 2014

Interesting attractions to visit All respondents France

73%

Italy

70%

Greece

60%

Germany

56%

United Kingdom

55%

Spain

52%

India

49%

Switzerland

41%

North Africa

41%

Mexico

37%

Australia

24%

17th

Read as: 24% of all respondents associated Australia with ‘interesting attractions to visit’.

Elements of ‘interesting attractions’ Respondents were asked what constitutes ‘interesting attractions’ when choosing a holiday destination. Natural landmarks/ Heritage Sites

34%

Historical landmarks

33%

Spectacular architecture

10%

Museums/ art galleries/ theatres

9%

Zoos/ Aquariums/ Wildlife Sanctuary

4%

Amusement/ Themed attractions

3%

Theme parks

2%

Cultural or religious sites

2%

Restaurants

1%

Shopping centres and malls

1%

Casinos/ nightclubs/ bars

0%

None of the above

1%

World class beauty and natural environments’ All respondents Italy

51%

France

46%

Hawaii

45%

Greece

44%

Australia

42%

Spain

41%

Brazil

Read as: 42% of all respondents associated Australia with ‘world class beauty and natural environments’.

38%

Thailand

36%

Switzerland

36%

India

36%

Elements of ‘world class beauty and natural environments’ Respondents were asked what are the most important types ‘world class beauty and natural environments’.

Respondents were asked what constitutes ‘World class beauty and natural environments’. Remarkable scenery to soak up and enjoy

44%

Visiting sites of historical, cultural or religious significance

28%

Engaging with nature first hand, for example

16%

by hiking, bike riding or scuba diving World Heritage status areas None of the above

13%

Historical / cultural / religious environments

32%

Tropical islands and beaches environments

23%

Wilderness / mountain environments

21%

Natural developed coastal environments

13%

Natural remote coastal environments

8%

Wide open inland / outback environments 0% None of the above

2% 0%

Understanding the Russian consumer May 2014

Good food, wine, local cuisine and produce All respondents

17th

Italy

67%

France

59%

Greece

40%

Spain

38%

Germany

35%

Mexico

31%

Thailand

27%

Switzerland

24%

Brazil

23%

Argentina

21%

Australia

13%

Read as: 13% of all respondents associated Australia with ‘good food, wine, local cuisine and produce’.

Elements of ‘good, wine, local cuisine and produce’ Respondents were asked what constitutes ‘good food, wine, local cuisine and produce’ when choosing a holiday destination.

Respondents were asked what are the most important types ‘good food, wine, local cuisine and produce’.

A national style of cooking I like

33%

Fresh local produce grown or raised in natural environments

33%

A heritage of food and wine culture

13%

Interesting and exciting street-food

9%

Award winning fine dining restaurants

5%

Vineyards with great food offerings

5%

None of the above

0%

24%

Natural fruit and vegetables Fresh seafood

21%

High grade meat and livestock

21%

A range of multicultural food options

17%

Renowned cheese and dairy

9%

Award winning wineries

7%

None of the above

1%

How is Australian food and wine currently viewed by Russian consumers? Respondents were asked which factors they currently associate with the Australian food and wine offering. Fresh local produce grown or raised in natural environments

49%

High grade meat and live stock

49%

Fresh seafood

45%

Spectacular outdoor dining

44%

A heritage of Food and wine culture

23%

Unique culinary experiences

18%

Multicultural food

17%

Fish and chips on the beach

14%

Food and wine events and local festivals

14%

Stunning food and wine trails

13%

Wineries with great food

12%

Meat pie with sauce

12%

Fine dining restaurants

11%

Outback Steakhouses

6%

Backyard BBQs 6%

None of the above

11%

Read as: 49% of respondents associated Australian food and wine with ‘fresh food produce grown or raised in pristine natural environments’.

Understanding the Russian consumer May 2014

Exciting events, local festivals and celebrations

All respondents Brazil

69%

Italy

39%

Spain

36%

India

32%

Germany

32%

France

30%

Argentina

28%

Mexico

27%

Hawaii

27%

Thailand

25%

Australia

11%

19th

Read as: 11% of all respondents associated Australia with ‘exciting events, local festivals and celebrations’.

Elements of ‘exciting events, local festivals and celebrations’

Respondents were asked whether they always time their holiday and places visited with an event or festival of interest.

Average

Respondents were asked what constitutes ‘exciting events, local festivals and celebrations’ when choosing a holiday destination.

-18%

51%

Average

-1%

81%

China

-6%

78%

Indonesia

-10%

72%

India

-9%

67%

South Korea

-8%

66%

Brazil

-10%

63%

Malaysia

-9%

58%

Japan

-16%

49%

Russia

-19%

46%

USA

-20%

40%

Singapore

-16%

37%

Italy

-30%

27%

France

-39%

25%

Germany

-36%

24%

United Kingdom

-40%

23%

New Zealand

Disagree

Arts and entertainment events

20%

Music festivals

18%

Cultural celebrations

14%

Family events

11%

Sporting events

10%

Natural and wildlife events

9%

Local/ regional events

8%

Food and Wine festivals

6%

Religious events None of the above

1% 3%

Agree

Reads as: 49% of Russian respondents indicated they always time their holiday and places visited with an event or festival of interest.

Understanding the Russian consumer May 2014

Great swimming beaches

Interesting local wildlife

All respondents

All respondents

Hawaii

54%

Brazil

48%

Thailand

53%

India

46%

Spain

43%

Australia

44%

Greece

40%

Hawaii

39%

Italy

39%

Thailand

39%

North Africa

35%

Italy

36%

United Arab Emirates

30%

Greece

36%

Brazil

27%

Scandinavia

33%

Indonesia/ Bali

25%

South Africa

31%

Australia

24%

Argentina

29%

Read as: 24% of all respondents associated Australia with ‘great swimming beaches’.

Read as: 44% of all respondents associated Australia with ‘interesting local wildlife’.

Rich history and heritage

Ease of obtaining a visa

All respondents

All respondents

Italy

71%

Thailand

48%

Greece

68%

North Africa

32%

France

67%

Greece

21%

India

59%

India

17%

Germany

55%

Spain

15%

Spain

52%

Vietnam

14%

United Kingdom

51%

Scandinavia

14%

Mexico

44%

Brazil

12%

North Africa

39%

Italy

12%

Scandinavia

34%

Germany

12%

Australia

11%

23th Australia

5%

27th

Read as: 11% of all respondents associated Australia with ‘rich history and heritage’.

Read as: 5% of all respondents associated Australia with ‘ease of obtaining a visa’.

Friendly and open citizens, local hospitality

A family friendly destination

All respondents

All respondents 37%

Italy

42%

Greece

33%

France

42%

France

Italy

28%

Greece

35%

Hawaii

28%

Germany

30%

Thailand

27%

Spain

29%

Spain

26%

Thailand

22%

Canada

25%

Hawaii

21%

Brazil

24%

Switzerland

21%

India

24%

Canada

21%

23%

United Arab Emirates

21%

Australia

11th

Read as: 23% of all respondents associated Australia with ‘friendly and open citizens, local hsopitality’.

20%

Australia

Read as: 20% of all respondents associated Australia with a‘family friendly destination’.

Understanding the Russian consumer May 2014

Associations with Australia vs. importance when selecting a holiday destination This chart shows the importance of each factor when selecting a holiday destination and the extent to which Australia is associated with each of these factors. The horizontal axis indicates the importance level, with low importance on the left side of the chart to high importance on the right. The vertical axis indicates the extent to which Australia is associated with each of these factors, with weak associations at the bottom to strong associations at the top. 80

Strengths for Australia

Weak

Associations with Australia

70 60

Different and interesting local wildlife

50 40 30 20

Clean cities / good road infrastructure

Quality accommodation

Indigenous experiences

The best in luxury accommodation and facilities

Native or cultural heritage or activities

Romantic destination 10

Vibrant city 0 22

21

Exciting events

Great shopping 20

19

18

17

16

15

Low

Spectacular coastal scenery

14

13

12

Interesting attractions to visit

Good food, wine, local cuisine and produce Rich history and heritage

Family friendly Ease of obtaining visa

Flights with no stop-overs

Great swimming beaches

World class beauty and natural environments

Friendly and open citizens

Safe and secure

11

10

9

Value for money

Opportunities for Australia 8

7

6

importance when selecting a holiday destination

5

4

3

2

1

High

The factors placed in the top right quadrant are considered the strengths for Australia as a destination, given the high importance in destination choice and the strong association with Australia as a holiday destination. The factors placed in the bottom right quadrant are considered the opportunities for Australia as a destination, given the high importance in destination choice but ‘currently’ weak association with Australia as a holiday destination. Strengths for Australia: Different and interesting local wildlife, world class beauty and natural environments Opportunities for Australia: Friendly and open citizens, family friendly, ease of obtaining visa, rich history and heritage, good food, wine, local cuisine and produce, value for money, interesting attractions to visit, safety and security, great swimming beaches, world class beauty and natural environments.

Aspiration and Intention to visit Respondents were asked which destinations they would most like to visit in the next four years (aspiration), and which destinations they are actively planning to visit in the next two years (intention).

Italy

Visitation 000’s of trips in 2012 (TE) Visitation rankings derived from Tourism Economics

Intention Which of the following destinations are you actively planning to visit for a holiday in the next 2 years?

Aspiration Which of the following destinations are you considering travelling to in the next 4 years? 44%

Italy

23%

North Africa

2799

Scandinavia

1536

France

39%

Greece

21%

Greece

36%

Thailand

21%

Thailand

1317

Spain

1206

Spain

33%

France

19%

Thailand

32%

Spain

17%

Italy

950

Germany

918

Germany

30%

Germany

15%

Scandinavia

22%

North Africa

14%

Greece

875

United Arab Emirates

12%

Other Western Continental Europe

750

Scandinavia

10%

India

8%

Australia

4%

North Africa United Arab Emirates India 16th

Australia

22% 21% 18% 12%

Key: •Scandinavia (e.g. Finland, Sweden, Denmark, Norway) •Other Middle East (e.g. Israel, Iran, Iraq, Jordan, Lebanon)

19th

Other Middle East United Arab Emirates 23rd

Australia

460 410 17

•North Africa (e.g. Egypt, Morocco, Tunisia) •United Arab Emirates (Dubai, Abu Dhabi etc.)

Read as: 12% of Russian consumers are considering travel to Australia in the next 4 years, with 4% intending to visit. Australia is ranked 23rd for visitation against other long haul destinations for outbound travel from Russia. Note: Hawaii is included in US for visitation figures as cannot be separated. Charts only display the top 10 destinations across aspiration, intention and visitation. Understanding the Russian consumer May 2014

Obstacles preventing consumers from planning a holiday to Australia Respondents were asked if they had specific obstacles preventing planning a holiday in Australia. Expensive airfares

61%

Flight is too long

39%

I don’t know enough about what to do there

32%

Difficult to obtain visas

25%

I don’t know how to travel in/ around Australia

21%

I don’t know anyone who lives there

18%

Not the best experiences I can afford

17%

High cost of living expenses

14%

High cost of travelling around

12%

A high chance of terrorism

4%

Told of a bad experience by someone I know

4%

Bad reports about the treatment of fellow travellers

3%

A destination whose people have different beliefs to mine

3%

A high chance of being robbed or assaulted

1%

Experiences that are not unique and can be had anywhere

0%

Law enforcement system without integrity

0%

Other

3%

Read as: 61% of respondents indicated ‘expensive airfares’ was a key obstacle for not planning a holiday to Australia.

Understanding the Russian consumer May 2014

Consumer passions and interest segmentation Respondents were provided with a list of 52 individual passions points (i.e. hobbies) and asked to indicate which ones were of interest. Respondents were then asked to indicate which of these passions they would travel overseas to specifically follow or participate in. After a thorough segmentation each individual passion was grouped into segments of which consumers would travel overseas to follow or participate in.

Nature

74%

Arts and History

62%

Food and Wine

41%

Aquatic activities

40%

Foreign Culture

34%

Photography

33%

Shopping

26%

Music and festivals

22%

Adventure activities

20%

Art Participation

16%

Sport

15%

Self Drive

4%

Gambling

4%

Read as: 74% of consumers suggested they would travel overseas to follow or participate in a ‘nature’ based passion or area of interest. Nature Activities (74%) Bird watching, campervan-ing, camping, gardening, observing wildlife, natural wonders, tramping and walking.

Sports (15%) Cricket, golf, gym / fitness, horse racing, motor racing, netball, rugby, running, soccer and tennis.

Food and Wine (41%) Trying new / different foods, cooking / learning to cook and wine tasting.

Adventure Activities (20%) Four wheel driving, horse riding, hunting, kayaking, mountain biking, road cycling and skiing.

Art Appreciation and History (62%) Admiring architecture / design, art appreciation, museums and history.

Art Participation (16%) Drawing / illustration, painting, sculpture / pottery and writing, dancing and singing.

Aquatic Activities (40%) Diving, fishing, sailing, snorkelling / scuba diving, surfing / paddle boarding and swimming.

Single Activity Segments Experiencing foreign culture (34%) / Shopping (26%) / Photography (33%) Self Drive (4%) / Gambling (4%).

Concerts and Festivals (22%) Attending concerts / shows, attending music festivals.

Understanding the Russian consumer May 2014

About the research The Consumer Demand Project (CDP) is a major international tourism research project into how global consumers view Australia and what most motivates them to visit, identifying the ‘triggers’ and experiences important to the consumer when selecting a holiday destination. The research project was carried out by BDA Marketing Planning, a consultancy who specialise in international demand side strategy development and consumer research. BDA Marketing Planning was originally employed by Tourism Australia in 2010 to work on a major strategic project which was the forerunner to the industry’s Tourism 2020 strategy. The aim of this follow-up consumer research project was to help determine the strategic priorities to achieve the Tourism 2020 goal, by providing a comprehensive assessment of Australia’s current destination appeal and the future tourism potential of key Australian holiday options. The research was carried out in fifteen of Australia’s key tourism markets: China, Germany, India, Indonesia, Japan, Malaysia, New Zealand, Singapore, South Korea, Brazil, Russia, Italy, France, UK and USA.

Understanding the Russian consumer May 2014