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from their ordinary and mundane life.

Visiting Friends and Relatives
Over the years, many emerging-market travellers
have immigrated to other countries and most see
it as an advantage to have family and friends
around the world. When travelling, it offers both
a perceived safety net, as well as easing some of
the burden of travel expenses, especially when
they travel in larger family and friendship groups.

VFR is an important travel

component

The bottom line is that emerging-market travellers

enjoy and crave international travel. There
appears to be a stronger status-seeking component
to it, as well as a visiting friends and relatives
(VFR) component.
Traditional Markets

Emerging Markets

The Majority are Educated

More are becoming educated

Old wealth

New wealth

Inherited wealth

Worked for wealth

1.3.6

Cultural Importance

While facts and figures tell an interesting story

about the importance of emerging markets,
qualitative considerations are also important.
Cultural developments are often associated with
economic success of a country. It is therefore no
surprise that emerging markets are growing not
only in economic importance but also culturally.

Culture needs to be taken

on board

Culturally, many emerging markets are

influencing the world around them. India for
instance, is the largest world producer of films,
with over 900 in 2005, ahead of the European
Union, with about 800, and the United States,
with about 700. Other emerging markets, such as
China and Russia, rank among the top ten film
producers.
Historically, it has been the traditional Western
cultures that have been influencing the East.

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Now, it seems, that Eastern culture is influencing

the West.
The East will continue to influence the world with
their exotic cuisine, music, art and literature.
Eastern philosophy and spirituality are already
growing fast among Westerners yoga, tai chi
and alternative medicine. And the more people
from these markets continue to travel, the greater
will be their cultural influence on the world. The
main question to consider is, Will the travellers
from the emerging markets redefine the travel and
tourism industry? Will they follow the footsteps
of the mass, standardised and rigidly packaged
holidays as in the Western world? Will the way
we travel, our travel motives and key travel trends
change because of these new tourists?

1.4

Culture both ways

Traveller Profile

It is important for travel and tourism industry

participants to keep a close eye on the lucrative
emerging markets by tracking who these
travellers are and how they are evolving, in terms
of their travel behaviour, travel motivations and
satisfaction levels with tourism suppliers around
the world.
Traditional travellers such as the Germans and the
British are sophisticated, demanding and
experienced.
Emerging-market travellers are
quite inexperienced but they can be equally
demanding and the high level of education makes
them sophisticated as well. Affluent Indians for
instance are quite demanding when it comes to
proper service. Eastern Europeans are also
demanding and the Polish and Hungarians are
known for their misbehaviour if they dont get
what they want. Brazilians, South Africans and
the Chinese are less demanding. However, this
does not mean that they will stand for poor
service.

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1.4.1

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Age
Emerging market travellers
are middle aged

The bulk of emerging market travellers appears to

be middle aged. Approximately half of Brazilian
outbound travellers are aged 28 to 45 years and
two thirds of Chinese travellers are 35 to 44 years
old. And in South Africa three quarters of their
outbound travellers are 25 to 54 years old.
By contrast the populations of traditional
destinations such as Germany and the UK are
getting older and older, redefining their tourism
demand. For the most part, emerging-market
countries are not afflicted by aging populations as
in developed countries. China is perhaps the only
emerging market that has a problem in this
regard, which is caused by the policy-induced
decline in fertility since the mid 1970s (the one
child per household regulation).
It therefore, can be deduced that emerging
markets on a whole will produce younger and
more dynamic and vibrant travellers. These
travellers will be more active, healthier and
hipper. Tourism businesses need to be aware of
this in catering to the needs of these relatively
young travellers of the future.
Age Profile
Traditional Markets

Old and Aging
1.4.2

Emerging Markets

Young and Happening

Income

Compared to other mainstream outbound markets

the income levels of emerging markets are
relatively low. In the year 2005 the average
disposable income of the Chinese was the lowest
among emerging markets at USD $4,325. The
Czech Republic had the highest disposable
income of USD $10,156. Generally the Eastern
European markets had a higher average
disposable income than other markets. Brazil was

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Rise of the middle class

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comparatively high at USD $8,723.

These
income levels for the emerging markets do not
measure up to traditional markets. In the US, the
average disposable income for 2005 was USD
$31,410, almost three times higher than the Czech
Republic. The UK and Germany had disposable
incomes of USD $24,612 and USD $24,078,
respectively. While income per capita is still low
because of the sheer population size, one must
consider the vast number of travellers who have
the means to travel. And these numbers are
growing significantly.
Economic growth from these markets will bolster
income levels from these markets. And the rising
of the middle class in these destinations bodes
well for outbound travel.
Income Profile
Traditional Markets

High but slowing income levels
1.4.3

Emerging Markets

Low and rising income levels

Education

From all markets emerging and traditional

outbound travellers tend to be well educated. In
China for instance, as much as 70% of all
outbound travellers have college education or
above.
In Brazil, almost three quarters of
travellers have a degree. This is not too different
from the UK, USA and Germany.

Outbound travellers are

well educated

Education and Travel Experience

Traditional Markets

Experienced and sophisticated

Inexperienced and curious

Highly educated with a lust for the

sand, sea and sun

Highly educated with a lust for

status and shopping

1.5

28

Emerging Markets

Market Characteristics

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1.5.1

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Purpose of Visit

The majority of trips from emerging markets are

for holiday purposes. In most cases over 50% of
trips from emerging markets are for holiday
purposes. Moldova is in the lead with 90% of
their trips making up holiday trips. Hungary
follows with almost three quarters of outbound
trips being for holiday purposes. Russia is 68%
Brazil, 63% and China, 53%.

Travel for holiday

dominates

For the majority of the emerging markets, the

business-travel component is relatively moderate
in size. Business trips make up less than 50% of
all trips from emerging markets. And in some
cases it is less than 5%. However, the importance
of this segment should not be underestimated.

Business travel is moderate

but still important

The Czech Republic has the highest percentage of

outbound business trips (43%). Almost one third
of all outbound trips are for business purposes in
Brazil, South Africa and the Ukraine. Business
trips make up almost one fifth of outbound trips
for Russia and Poland. Business trips make up
less than 20% for the rest the emerging markets.
In the final analysis holiday travel dominates but
business travel should not be slighted as this
group has the means to spend. Moreover,
business travellers are very likely to return to a
destination either alone or with friends or family
for holiday purposes.

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