Strengths And Weaknesses Found In Victoria Bc Tourism Essay

Australia is the 12th strongest economy in the world1 by GDP; it is also the 5th country with highest percentage of older population in the world and despite the world’s recession, Australia continues being a stable economy. The stability in this country makes it a good target for outbound tourism towards foreign destinations like Victoria, BC in Canada.

By using a SWOT analysis, we will first evaluate the internal factors of our destination by outlining the strengths and weaknesses found in Victoria BC as a tourist site. In this investigation, we will identify the characteristics that will position Victoria in competitive advantages over other cities in Canada or other destinations overseas. Furthermore, in the same analysis, we will scan the external factors in Australia that will present opportunities or threats favouring or hindering the source of tourist outflow towards Victoria BC.

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In addition, through a segmentation analysis we will identify targets that will represent the primary and secondary segments that will become the focus for a tourism marketing strategy. Moreover, after performing a segment attractiveness examination, we will formulate a recommendation on the preferred segment to market and position Victoria BC as a tourist destination for senior Australian visitors.

Strengths:

As a tourist destination for Australians, Victoria has strong assets. First, it offers a variety of attractions that caters to everyone from local heritage and aboriginal attractions to outdoor and nature exploring opportunities. Second, Victoria climate is an advantage over other closer competitors. Being on opposite ends of the globe, seasons between Victoria and Australia are opposite in time. During winter period in Australia, Victoria will be enjoying the sunshine of June or July. In addition, Victoria is known for the best climate in Canada which makes it an ideal place for outdoor activities all year long.

Third, the geographic location offers many opportunities for outdoor activities, exposure to wildlife, nature, trail and ocean site walks. “Consists mainly of rolling lowlands interspersed with granite rocks of up to 300m/985ft in height. The city is bounded by ocean on three sides. In the north and west, cliffs, spits and lagoons formed by glacial action make up portions of the shoreline. Elsewhere, the shoreline consists of beaches of pebble and sand punctuated with coves. Several elevated viewpoints in and around the city provide a bird’s eye view of all this and more”2.

Fourth, it gives easy access to cosmopolitan and metropolitan cities like Vancouver and other tourist destinations like USA by ferry and airplanes in both English speaking locations. Furthermore, Victoria hosts authentic restaurants that represent the multicultural population of the island as well as central lodgings which are at walking distance from the heart of the city.

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SWOT ANALYSIS (SEE APENDIX I)

Weakness

Victoria’s main weaknesses come from the lack of awareness of the city as a tourist destination. Additionally, the high competition makes travel expenses higher and fewer direct international flights coming to and from victoria’s international Airport. Moreover, Canada as a whole does not support health services for temporary visitors. Lastly, shopping is made more difficult for tourist due to high taxes in Canada.

Opportunity

There are some opportunities that Victoria should consider in order to boost their number of visitors: Increase awareness through tour operators, Develop agreements with neighbour cities to promote affordable trip packages, Develop sustainable and cultural tourism. Victoria should also take advantage of the cities’ common characters with Australia and their resembling motivations for tourism3 (sceneries, access to nature and outdoor activities, wildlife and proximity to cosmopolitan cities)

Threat

Victoria’s tourism industry can be threatened by other competitive markets like the USA, which due to currency depreciation present themselves as more attractive and affordable destinations. Other closer competitors within Australia, in Asia or Europe may as well present a threat to the long and expensive trip to Victoria. Lastly, the unclear definition between Vancouver and Victoria may take away from the international outlook to Victoria as a preferred tourist destination.

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Segmentation Analysis

The Target segments are 17% of the Australian population who are 60 years or older and are living in metropolitan areas which according to the department of community, Senior well living in Australia reported %73 on seniors live in metropolitan areas. In addition, the segment will be focused on couples with no children with account to %50 of the senior population in the country3. In addition, according to The Conference board of Canada %40 of seniors in Australia live in poverty4. This would leave a margin of %60 seniors that could potentially become the primary target for this tourism marketing proposal services4

Assumptions:

– There are different types of seniors that I am trying to target: the primary segments are those seniors, who have retired and feel they want to relax, take a trip with no rush and exposure to a healthy environment with ample access to Nature and Culture.

– The second segment are seniors who have either retired or are about to retire and feel life is starting and need to adventure now that they don’t have the responsibility of work or family.

-Metropolitan areas are more expensive to live in; therefore the target segment will have better financial stability and potentially be receiving retirement from service. The income source may indicate that a portion of this group have retirement plans savings and or investments.

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SEGMENTATION ANALYSIS

Broad Market Segmentation

Golden Age Traveler

Cultural & Heritage Interest Travelers

Geographic Segmentation

Australian senior citizens, baby boomers who have strongest interest in ecotourism and cultural heritage attractions such as

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historic sites, museums, nature, parks and wildlife exposure

Australian senior citizens, who have the Interest in short trips with outdoor activities like sightseeing, golfing, shopping, gambling and easy access to cosmopolitan and other tourist destination

Demographic Segmentation

Retired married couples with graduate studies and no children living at home age 65 and over living in metropolitan areas

High Income Married Couples with no children living at home age 60 and over living in metropolitan areas

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Psychographic Segmentation

Self-sufficient individuals, family oriented, community values who enjoy peaceful traveling, exposure to nature and environmentally conscious with are interest in exploring other cultures

High disposable income with active lifestyle, enjoy socializing with other people of same interest and look for outdoor activities, casinos, high-end restaurants, resorts and sports

Behavioural Segmentation5

Occasion:

Benefit Sought:

User Status:

Loyalty Status

Buyer Readiness stage:

– Winter Vacations

-Authentic experience

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that explores a destination’s

Natural and cultural heritage.

– First time visitors

-Switchers

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– Investigate options, costs and take time to decide

– Winter Vacations

-Getaway with easy access to cosmopolitan cities and metropolises

-Frequent visitors

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– Soft Loyal

– Look for a short getaway no much investigation, they look, like and buy

Segment Attractiveness

Primary

Secondary

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Segment Attractiveness Analysis

The Segments are measureable because we have quantitative data of the subject in terms of demographics, age groups and financial conditions that could become our primarily target. %73 segments living in metropolitan areas give them easier access to mass media, technology and better income. However, there is no specific data describing the literacy rate of this specific group and it is for this reason that the assessment for this criterion is a 6.

If specifically identified, the segments chosen are indeed substantial and profitable enough to serve. Graduates, affluent and high income seniors are highly inclined to use their savings, disposable income or retirement funds to enjoy their lives after retiring from the workforce. The segments are also highly distinguishable from other segments because they have specific geographic, demographic, psychographic and behavioural characteristics. Additionally, this group is accessible. Eeffective marketing, sales and service programs can be formulated for attracting and serving the segments because they are located in central areas exposed to technology and other marketing venues. Finally, this segment is ethically approachable because they are not presented as a vulnerable group that can potentially attract negative opinions.

SEGMENT ATTRACTIVENESS

CRITERIA

ASSESSMENT (0-10)

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1

Measurable

6

2

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Substantial

8

3

Differentiable

9

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4

Actionable

8

5

Accessible

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8

6

Ethical

10

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Total Assessment for Segment

49

Recommendations

The primary target segment: Retired married Self-sufficient couples, 65 years or older (golden- age), no children living at home, located in metropolitan areas with strong sense of community values who enjoy peaceful traveling, exposure to nature and environment, interested in outdoor activities and exploring other cultures.

Brand Positioning Statement:

Australian Golden age couples, rest at ease in the colourful city of Victoria, Explore the aboriginal history and heritage of the city while walking through the most exuberant sceneries in all Canada

Conclusion

Having identified the economic and demographic assets of Australia as a powerful potential market for senior outbound tourism, the swot analysis, segmentation analysis and segment attractiveness analysis have narrowed down our target sector in order to exploit Victoria in competitive advantages over other cities in Canada or other destinations overseas and position it as a tourist destination of golden age travelers age 65 and older. If Opportunities are explored, we can promote victoria as an authentic experience that will allow natural, cultural and seasonal traveling for first time or frequent visitors.

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APENDIX 1

STRENGHTS

WEAKNESSES

Perceived as desirable destination (Ocean, Rocky mountains, gardens, beaches, lagoons)

Museums & Historic Sites

Attractions and Entertainment

Parks, wildlife, natural areas & Outdoor activities

Local Heritage & Aboriginal Attractions

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Location and Safety (near cosmopolitan cities, bordered with USA)

Same Language

Seasons are opposite from Australia

Brand is no very Recognized

Not many international Flight go Directly out or into Victoria

High Taxes for shopping

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Health Services are not available to temporary visitors

Lack of high end shopping

High prices for airfare, accommodation and tourist attractions

OPPORTUNITIES

THREATS

Canada meets Australians market on motivations for visiting a country(sceneries, access to nature and outdoor activities, wildlife and proximity to cosmopolitan cities)

Increase awareness through tour operators

Develop sustainable and cultural tourism

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Develop agreements with neighbour cities to promote affordable trip packages

Depreciation of USA dollar makes it a more attractive and affordable tourist destination.

Closer are more affordable destinations in Europe and Asia could shift Australian visitors flow from Victoria

Australia offers similar products in terms of tourist attractions, events and activities

Not clear differentiation between Victoria and Vancouver.

Notes

1. Wikipedia, “List of countries by GDP (nominal).” Last modified 2013. Accessed February 13, 2013. http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal).

2. Super Natural British Columbia , “Victoria Geography.” Last modified 2012. Accessed February 13, 2013. http://www.hellobc.com/victoria/geography.aspx.

3. “Global Summary Report 2011.” Canadian Tourism Commission. : 27.

http://en-corporate.canada.travel/sites/default/files/pdf/Research/Market-knowledge/Global-tourism-watch/global_summary_gtw_yr5_2011_en.pdf (accessed February 13, 2013).

4. Department for Communities. Western Australian, “seniors’ Wellbeing Indicators 2012, Demographic Profile.”Perth, Western Australia 2012. http://www.communities.wa.gov.au/serviceareas/seniors/research/Documents/SO46 SWI Demographic Profile.pdf (accessed February 13, 2013)

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5. Exams Tutor, “Behavioural Segmentation.” Last modified 2012. Accessed February 13, 2013. http://www.examstutor.com/business/resources/studyroom/marketing/market_analysis/9_behavioural_segmentation.php.

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