The radical case of Calviá, Spain & The Portuguese experience, Vilamoura XXI

2. 2.REPOSITIONING THE TOURIST PRODUCT OFMEDITERRANEAN DESTINATIONSAndrew Coutts - PortugalAthens, October 18, 2005

3. From Mass Tourism to Sustainable Destination The radical case of Calviá, Spain&The Portuguese experience, Vilamoura XXI

4. A long-term process, led by a commitment to continuing improvement rather than immediate outcomes and always considering the new Tourism and Leisure Environment From Mass Tourism to Sustainable Destination Turning Away From And Turning Towards Old Travel Patterns New Travel Patterns Established Destinations Emerging Destinations Old Products New Products Fragmented Tourism Industry Economic Development Tool Developer Control Community Control Financial Illusion Financial Reality Passive Consumers Involved Participants Observing Technology Orchestrating Technology Mass Markets Specialty / Niche Markets Mass Marketing Direct Customer Communications

5. From Mass TourismtoSustainable DestinationNew Travel Patterns New travel patterns reflect changes in consumer behavior; Aggressive public and private sector development; From long trips to short breaks; Vacations that are purpose driven by education, wellness…self improvement; Deregulation of international air travel; Reductions in price.

6. From Mass Tourism to Sustainable DestinationEmerging Destinations New countries, Croatia, Morocco, Bulgaria, among others New cities ,desert, natural parks or forests Small Places Reduce number of rooms New developments will increase the range of experiences offered to potential visitors.

7. From Mass Tourism to Sustainable DestinationNew Products Search for authenticity; To satisfy new market necessities; To get new segments of market; To diversify the actual offer; To reposition tourist destinations; To simplify buying and selling process; To improve the product commercialization; To improve competitiveness;

8. From Mass Tourism to Sustainable DestinationNew Products Resources Integration of: Shopping and recreation; Entertainment and education (edutainment); Culture and meetings/business center development. (Water, Land, History, Human Society) + Facilities / Equipments + Services = Products/Experiences + Mix Services + Organization + Commercialization = Offer

9. To do Walking tours To see City breaks To feel Wine tours To relax Adventure tourism To learn Bird Watching To explore Fly & Drive To be there Ecotours Mountain Activities From Mass Tourism to Sustainable DestinationNew Products

10. From Mass Tourism to Sustainable Destination Community Control Community interest and tourism must work together for any chance of long term success. Financial Reality Economic reality brings a renewed discipline to the planning, development, and financial community to first, improve the performance of existing assets; and second, acquire strategic undervalued assets before considering major new investments. Involved Participants Leisure participants need to be treated as individuals and feel a positive interaction with their physical and social environment. Specialty Markets Segmenting markets into special interest groups

11. ... in Calviá the spanish did it in a radical way Calvià, the most important tourist city in the Balearic Islands and one of the most visited tourist destinations of the Mediterranean...

12. "Victim" of the International tourist "boom" of the 60’s Calviá Calvià becomes one of the main massive "sun and beach" tourist destinations of the Mediterranean with an exponential growth and without any consideration for the environment

13. Calviá • TIME TO PREVENT,REFURBISH,DIVERSIFY

14. 4 Policies of Implementation - Reduce construction densities; - Reducing urban construction area; - Sped control of urban construction; - Policy of studying the hotel units, in order to release case by case, in land for public use. Calviá Master plan XXI • 10 Strategically Guide Lines • - To bound the city, to contain human density and rehabilitate the territory; • - To improve cohesion and quality of life; • - To preserve the natural patrimony; • - To recover the artistic and cultural patrimony; • - To rehabilitate all tourist zones ; • - To develop Calvià as a tourist destination ; • - To improve public transports and pedestrian accesses; • - To maintain a sustainable management of resources; • To expand the economy and to invest in knowledge resources; • - To innovate the municipal management ;

15. Calviá Master plan XXI • INITIATIVES SHORT TERM • Some examples: • Regulation of urban and eco developments; • Recovering landscape and natural patrimony; • Creation and renovation of walking trills and high view spots; • Plan for “Urban Cleanness”; • Plan for “fighting seasonality: ”Calvià, el Invierno Europeo”; • Plan for water distribution, energy and residues control; • Enhancement of agricultural environment; • Renewal of the municipal organization

16. Selected as “Development For the World”

17. ... meanwhile in Algarve, Portugal… Vilamoura XXI Vilamoura the first tourist destination in Portugal Algarve’s tourism industry developedin the 1960s. In the early 1990s, the Portuguese government introduced a regional building freeze and initiated public planning and environmental controls to combat the impacts of uncontrolled tourism development during the 1970s and ’80s.

18. ... meanwhile in Algarve, Portugal… Vilamoura XXIObjectives of the new TOURIST DESTINATION … … complete and integrated tourist destination; …national and international consistent image of high stand quality; … complete tourist destination; … integrated in a natural landscape environment.

19. Vilamoura XXILow density development, including hotels and residential accommodation, a fifth golf course designed by Arnold Palmer, new sports and training facilities, an equestrian centre and a Nature Park incorporating environmental considerations into product design; using resources efficiently; raising environmental awareness; protecting the natural and cultural heritage.

20. Vilamoura XXIincorporating environmental considerations into product design - Sustainable Masterplan 2 1 10 3 d a 4 9 g 6 f b 6 e 5 6 c h 1 i 8 j k

21. Vilamoura XXIincorporating environmental considerations into product design - Sustainable Masterplan • Strict control of construction and design; • Reduced construction densities; • New occupation indexes; • Green space preserves over 90 per cent of the land area; • Traffic control mechanisms roundabouts, cycle ways, pathways, park and ride, pedestrian zones, and speed controls; • Environmental guidelines and incentives for construction; • companies, property owners, small businesses and hotels.

22. Vilamoura XXIusing resources efficiently -Environmental Management System (EMS) • Monitoring environmental impacts and creating procedures to improve overall environmental performance in its golf, marina and beach operations. • Innovations to the golf courses • Reducing fertilizers and chemicals; • An aerator is used to enhance the oxygenation of water; • Built nest boxes for birds to attract natural insect predators while aquatic • plants extend existing bird habitats. • Innovations to the marina and beaches • Mobile “pump out” system; • Cleaned regularly and coastal water controls; • Water quality parameters monitored monthly; • Prevention plans for accidental oil/fuel spills; • Environmental training. • Vilamoura is currently extending its EMS to infrastructure and residential development.

23. Vilamoura XXIRaising Environmental Awareness • Communicating its environmental activities (through the semi-annual environmental newsletter, reports, brochures, and magazines); • Involving children in tree planting, and beach management with educational programs on beach and sand dunes protection; • Centre for Environmental and Nature Studies (CENA) provides visitors with information on nature conservation and flora and fauna. The center includes a library and an exhibition room. CENA annually endows four research internshipsfor university graduates, as well as courses, exhibitions, and debates.

24. Vilamoura XXIProtecting the Natural and Cultural Heritage • Preserved Cerro da Vila, the only private Roman ruin in Portugal, Quinta manor house and other typical 19th century Algarvian agricultural buildings;

25. Vilamoura XXIProtecting the Natural and Cultural Heritage • Developed Vilamoura’s 200 hectare EnvironmentalPark 12 % of the total area sets priorities for protecting, rehabilitating, and conserving local flora and fauna and their habitats. The wetlands are an important ecological area, hosting more than 100 species of birds, including rare or threatened species named in the Annex to Birds European Directive 79/409/CEE. Birds migrating to and from Africa use the lands for hibernation or breeding purposes. The area also harbors, among other species, very rare and endangered otters.

26. Vilamoura XXIRepositioning hospitality & leisure Remodelling, Rehabilitation, Ambient Certification, etc Tivoli Marinotel Vila Galé Ampalius Dom Pedro Marina, Golf e Portobello Grão Pará Atlantis Four Seasons Vilamoura (Time Share) Motel do Golfe Construction or concluding Vila Galé Marina **** Ocean View **** (close to Pinhal Golf Course Cegonha Golf and Country Club (next to the exit to Albufeira) Browns Club (close to The Old Course)

27. Vilamoura XXIRepositioning hospitality & leisure National Enterprise Groups must invest in their units in order to improve their conditions of competitiveness. Planning and Programming of the construction of new hospitality units and tourist lodging in the various “clusters” defined in the scope of the Plan of Urbanization of Vilamoura – 2nd phase Concentrate on the definition of “prime” localizations for the construction of new Hotels of 5*: Beach and Family Resort Hotels Golf and Conventions Resort Hotel Concentrate on the presence of the major hospitality Groups / “Brands” and on the attempt of concretion of new investments in Vilamoura Approach and negotiation with major groups such as Espírito Santo/Tivoli, Amorim, Vila Galé, Pestana Hotels & Resorts, Dom Pedro (Saviotti), Solverde, Real, Sodim (Queiroz Pereira), Porto Bay (Madeira)

28. Vilamoura XXIRepositioning hospitality & leisure Concentrate on getting the attention of international Group/”Brands” for the construction and operation of hotels and tourist lodging in Vilamoura: Accor/ Amorim Hilton International Ritz Carlton Marriot (Time-Share) World of TUI Sol Melia NH Hotels Four Seasons The Oberoi Group Movenpick Realstar (Canadá) Promotion of partnerships between Lusotur, National Investors and International Hospitality Groups, in order to achieve the concretion and operation of hotels in Vilamoura

29. Vilamoura XXIRepositioning hospitality & leisure – projects in plan or in construction

30. Vilamoura XXIRepositioning hospitality & leisure – projects in plan or in construction Hotel *** with 73 rooms Brand Promoter Accor/ Amorim Ibis ou Novotel Beginning of Construction 1º trimester de 2003

31. Vilamoura XXIRepositioning hospitality & leisure –projects in plan or in construction Golf and Conventions Resort Hotel ***** with 253 rooms and suites Promoter Brand Grupo André Jordan Tivoli Victoria Hotel

32. Vilamoura XXIRepositioning hospitality & leisure projects - projects in plan or in construction Hotel***** with 192 rooms and 95 luxury apartments Promoter Brand Grupo Amorim Blue&Green Situation Point Inaugurated on 30th September 2005

33. Vilamoura XXIRepositioning hospitality & leisure – projects in plan or in construction Consultancy Hotel***** with 152 rooms, 69 VOC units & 69 luxury apartments Promoter Brand Grupo IMOCOM Hilton Situation Point In construction

34. Vilamoura XXIRepositioning hospitality & leisure – projects in plan or in construction Promoter Grupo IMOCOM Brand Hilton Consultancy Model of Resort managed by an International Leader Company in hospitality management. Integrated by a Hotel 5* with 160 rooms, MICE facilities, Golf course, 80 apartments in “Vacation Ownership”, 90 villas, 2000m2 Spa. Architecture: John Seifert Architects, London & DSAA, Cascais.

35. Vilamoura XXIRepositioning hospitality & leisure – projects in plan or in construction Promoter Grupo IMOCOM Brand Hilton Consultancy

36. Vilamoura XXIRepositioning hospitality & leisure – projects in plan or in construction Lacustre City Hotel ***** (11.000 M2 possible to expand up to 20.000 M2) Hotel ***** (8.000 M2 of construction) Situation Point Master Plan in launch phase

37. Vilamoura XXIRepositioning hospitality & leisure – projects in plan or in construction Lacustre City - Vilamoura XXI 2nd phase Entertainment and activity, including shops, restaurants and open-air cafés, surrounding the inland Marina, lakes and canals. Developments planned for this zone include new hotels, resorts and villas bordering waterways with private access to the inland Marina.  

38. Vilamoura XXIRepositioning hospitality & leisure New investments in Hotels and Tourist Lodging developments (“Time-Share”, villages, etc.) can’t be dissociated from the existence, construction and operation of leisure facilities . Business Centre; Golf Course; Thematic Parks; Sport Facilities, Training and Competition Centers; Marinas and Recreation Harbors; Cultural and Leisure Facilities. Talassoterapy, SPA’s, “Fitness” Clubs; Seasonality Management. Target Segmentation of potential clients in priority markets.

39. Vilamoura XXIRepositioning hospitality & leisure In order to balance the commercial exploitation in the next 10 years in Algarve, the future construction of: 10-15 Golf courses with 18 holes; 1 Business Centre ( 2000-2500 persons); 4 ou 5 Marinas and Recreation Harbors; Parque das Cidades(Footballfields and other facilities) should go ahead with the increase of the hotel supply of 4* - 5* with the number of 5000-7500 beds, (8-10 Hotels 5* and 10-15 Hotels 4*), spread along into the most important tourism areas of the Algarve

40. Vilamoura XXILong-term sustainable tourist destination was supported by Wold-Class Sustainable Practices • Vilamoura XXI, an overarching masterplanning framework founded on sustainability principles; • Established an environmental policy and practice in 1996; • Engages top management in environmental leadership; • Undertakes research-based application of and compliance with environmental law;

41. Vilamoura XXILong-term sustainable tourist destination was supported by Wold-Class Sustainable Practices • Integrates environmental planning into building construction development, creates new habitats, and enhances already existing ecosystems; • Established environmental management systems to plan, manage, and control different areas of the business, including golf courses, marina and beaches, and planned future residential development areas; • Maintains ISO 14001 certification, and Green Globe Destination; Vilamoura also earned the Committed to Green Award for Environmental Excellence; • Cultivates partnerships with key stakeholders; • Is involved with the community through various educational, sports and leisure activities.

42. THANK YOU FOR YOUR ATTENTION • ILM HOSPITALITY & TOURISM ADVISERS is a professional services company operating in the tourism and leisure sectors with offices in Lisbon, London, Rome and Barcelona. www.group-ilm.com