The challenge: Sustainable Tourism Destination combining tourist and land-use perspectives

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1 The challenge: Sustainable Tourism Destination combining tourist and land-use perspectives Karoliina Tuokkola-Liljavirta Research assistant Department of Architecture Aalto University School of Science and Technology Finland Eija Hasu Researcher Department of Architecture Aalto University School of Science and Technology Finland Summary This paper is examines a sustainable tourism destination in terms of sustainability and well-being. The well-being is related to tourism industry, accommodation and services, as well as to the unique nature of Finnish Lapland. At the moment seasonality is one of the most distinctive and problematic features of tourism, and maybe the most typical characteristic of tourism on a global basis. The tourism in Finnish Lapland makes no exception. In order to even put the seasonality, this paper presents third agers as second home owners as a potential target group. The most important question is, however, who is and who should be responsible for developing the strategies and defining the target tourist groups for a tourism destination. A commonly agreed vision, co-operation and defined roles will ease the processes, but usually a leading party is needed. Conflicting visions and goals as well as competing strategies and stakeholders can harm and slow down the development in tourist destinations. Keywords: land use planning, sustainable tourism, second homes, seasonality, wellness tourism, Lapland, third age 1. Introduction The purpose of this paper is to examine a sustainable tourism destination in terms of sustainability and well-being. The well-being is related to accommodation and services as well as to the unique nature of Lapland. This paper is part of Land Use Planning for Sustainable Tourism Destinations (MATKA), a joint project between the Department of Architecture and the Department of Energy Technology at the Aalto University School of Science and Technology and the Finnish Forest Research Institute. [1] The aim of MATKA-project is to provide information and practical examples on how the land use planning and land allocation, building and tourism services can support and contribute to sustainable tourism destinations and communities in Finnish Lapland. The recent rapid growth of tourism globally and development plans of tourism centres in Lapland have raised important issues concerning the land use planning, architecture and construction principles. Questions such as how urban the built environment should be in nature-based tourism destinations, how to define the environmental capacity of a tourism destination and how

2 sustainability can be achieved in local tourism services and planning and construction practices have arisen and wait to be answered. In MATKA-project the characteristic of the Nordic tourism industry are reviewed in order to better understand the parameters which have a powerful effect on the levels of efficiency in the tourism industry, and which contribute to the overall sustainability. The early results suggest that both domestic and international tourists value genuine experiences as well as implementation of various social and ecological sustainability principles at their travel destination. In addition, the interviews have highlighted the demand for wellness services, especially the third agers as target groups. 2. Combining tourist and land-use perspectives 2.1 MATKA aiming for sustainable tourism and land use planning At the moment seasonality is one of the most distinctive and problematic features of tourism, and maybe the most typical characteristic of tourism on a global basis. The tourism in Finnish Lapland makes no exception. Seasonality in the peripheral, northern, cold-climate destinations has frequently been viewed as a major problem for the tourism industry, and according to R.W. Butler [2], it has been held responsible for creating or exacerbating a number of difficulties faced by the industry, including problems in gaining access to capital, in obtaining and holding full-time staff, for low returns on investment causing subsequent high risk in operations, and for problems relating to peaking and overuse of facilities. Conversely, it has also been blamed for the under-utilization of these resources and facilities, often preventing tourism being accepted as a viable economic activity in many areas Index points / / / / / / / / / / / /2009 Levi Ylläs Rovaniemi Saariselkä Pyhä-Luosto Meri-Lappi Figure 1 Yearly turnover of companies in six tourism destinations in Lapland [3]

3 In MATKA-project the utilization rate of tourism destinations and the seasonality of the industry in the Northern Finland are studied. It has been recognized by the stakeholders involved that by lengthening the stay and affecting the seasonality of the tourism it is possible to achieve more effective and sustainable business solutions for the tourism industry. Additionally, the case studies conducted in conjunction with MATKA-project show that the destinations have recognized the need to change the seasonality pattern. They seek for new strategies, emphasizing on extending the existing main seasons, particularly the peaks, and developing new markets and products for the low-season. However, no substantial, new and innovative actions and efforts to reduce seasonality in destinations have been made. Despite of the recognition and first efforts, a more steady flow of tourist arrivals is still maintained only as a long term goal, desperately needed to ensure the continuity of the business in tourism destinations. The figure above shows how strong is the yearly repeating pattern of the seasonal variation in the turnovers of companies in six tourism destinations in Finnish Lapland last year The reasons for seasonality It has been generally accepted that seasonality in tourism industry consists of both natural and institutionalised seasonality [4]. The first relates to conditions and limitations set by factors in climate, seasons of the year, geographic location and weather typical to a particular destination. The latter is a result of human actions and regulations, typically related to cultural, religious, ethnic and social aspects. The most common forms creating institutionalised seasonality are school and public holidays. On the other hand, the destinations themselves, tourism-related service providers, tour operators and travel agents also maintain and accentuate the pattern of seasonality by targeting their service offering to high seasons. In consequence of this behaviour the actions taken to reduce seasonality are an important step towards the overall sustainability of the tourism industry Reducing seasonality Methods for modifying and improving the seasonality pattern in tourism have been identified and discussed in the tourism related literature [5]. These include providing off-season attractions, activity opportunities and new events, using financial means like pricing and taxation, trying to lengthen the existing seasons, diversifying markets, positioning strategically in the market, understanding profoundly the customer segments and encouraging domestic tourism in off-seasons. In this paper and MATKA-project the two latter ones are further discussed in the form of second home owners and their potential to the destinations, as well as their willingness to spend more time at the destination and use more services tailored to suit their needs. 2.2 The quest for sustainable accommodation Public and private sectors are able to reduce seasonality in destination areas through a variety of approaches. National and municipal regulations for land use planning and land allocation offer methods of influence for the development of the tourist destinations. The outcome of the destination areas can be defined in detail with these regulations. The outcome may vary from commercial to non-commercial, from low and dense to urban, and additionally include variable forms of property ownership. It can be argued, that an extensive amount of accommodation capacity in tourism destinations is owned by private persons, though no exact figures are available. Despite the lack of accurate statistics, it is important to understand the relationship between commercial and privately owned accommodation capacity.

4 Leisure time housing stock in Finland growth% Southern Finland Western Finland Eastern Finland Oulu area Lapland Southern Finland Table 1 Leisure-time housing stock in Finland Tilastokeskus. The leisure-time homes account for more than 28% of all the residential buildings in Finland and the growth has been most rapid in Finnish Lapland [6]. Furthermore, a substantial part of new leisure-time housing stock built is used as second homes. In the light of this development trend the second homes could advocate one key factor when aiming for year-round destination Second homes in the tourism destination Second homes are much more than just leisure-time dwelling. In a contemporary world, second homes enable place attachment and self-development [7]. Furthermore, several studies have implied that the second homes are more likely to provide an environment where one is able to experience the various aspects of home [8], such as privacy and social togetherness but also restorative and affective aspects related to well-being; the concept of home embraces also dimensions such as rootedness, continuity and self-image. Therefore, for second home owners the leisure-time housing stock is not just accommodation capacity. Understanding the leisure-time housing stock in the context of the home enables one to understand the challenges which occur when trying to influence the utilisation rate of accommodation capacity in a tourism destination. However, the tourism industry using the concept of cold beds emphasizes the aims to extend second homes into the rental market. The same aspect has been presented by researchers in the context of sustainability, as cold beds suggest unused capacity. The aims of sustainability emphasize the utilisation rate by increasing the utilisation less infrastructure and housing stock is allegedly needed. However, experiencing leisure-time housing as second homes reduce the owners willingness to rent out the leisure-time homes; various psychological meanings attached to the second homes decreases the motivation for rental activities. Therefore, an additional aspect is needed Third agers The leisure-time housing stock is owned mainly by aging people; nearly two thirds of all leisuretime home owners are over 60 years of age, which in turn explains the substantial amount of time spent in the second homes at retirement age second home owners are not engaged to working life anymore [9]. Hence, the age group of baby boomers, aged 50 years or more, has been recognized as one of the most significant group regarding tourism and second-home markets [10]. Baby boomers representing the life-stage group of third agers, a concept introduced by Laslett in mid-1980 s, are relatively free from many aspects limiting housing and travelling decisions, as implied above. At retirement third agers are healthier than ever; furthermore, the third age can be seen as a life stage as long as 20 years [11]. Thus, third agers are one noteworthy target group to be focused on regarding the aims of sustainable tourism destination and diminishing the seasonality. They are a generation of individualism and active lifestyle, and also a significant group in the tourism market. In addition, maybe one of the most important notions is that third agers use second homes on a more permanent basis [12].

5 Several studies have recognized baby boomers as a bridging generation, which links both the past and the present maybe even the future: By examining boomer life styles, predictions may be made as to how the role of pensioners might change in the future [13]. Additionally, already at the moment third agers account for a major share as visitors as well cottage owners in the Finnish Lapland. Third agers have possibility to have vacation exceeding the traditional holiday season periods. However, the destination areas have not been able to meet the growing demand for various needs presented by third agers. The third agers, and especially the second home owners, are willing to extend the time they spent in resort areas but only if the service supply and the environment produce a pull effect strong enough to encourage the change in the leisure-time behaviour Multiple dwellers as tourists Third agers as second home owners offer a promising target group with the possibility to change time allocation patterns. Nevertheless, the combination is not trouble-free. Group- and themeinterviews conducted in MATKA-project suggest that tourists with strong place attachment towards the tourism destination are more likely to feel at home in the tourist area. The leisure-time spent in the second home relates to everyday life, which in turn has an impact on consumption patterns; in other words, the second home owners tend to use less local tourism-related services. On the other hand, second home owners spend more time in the destination area and are willing to support the destination area. On the other hand, they avoid tourist-like consumption style and spend less money on the site compared to occasional tourists. Therefore, the second home owners are not seen as the most attractive target group. However, with regard to the concept of multiple dwelling, second home owners and their unique position as both tourists and owners of property should be taken into account. At the same time the second home owners represent continuity in customer relationships of the destinations. A destination may find it increasingly hard to combat seasonality if the tourism business is concentrated only gaining new tourists and overlooking the most loyal customers [14]. Indeed, in several rural destinations second home owners can be seen as an opportunity, as they may play an important role in turning the out-migration into migration [ 15 ]. However, community administrations seldom recognize the role of second home owners [16]. The place attachment and the sense of home determine the relationship developed towards the destination area. Many tourists end up purchasing a cottage or a time-share from the destination area they feel attachment to [17]. However, many tourists may feel equal attachment to the destination area but still continue on renting a cottage or other lodging from year to year [18]. Even these regular tourists indicate behaviour similar to second home owners. From the planning point of view, the notion emphasizes the fact that development plans should be transparent. Even tourists are interested in the future plans and may change their behaviour if they feel the well-being of themselves as well as the destination area threatened. After all, most loyal customers and second home owners have created a strong place attachment, which in turn can be evaluated in relation to the concept of home. 2.3 Motivating the off-season services and activities The Finnish Lapland appeals with uniqueness, the spirituality and the magic, aspects which are recognized both by domestic and international tourists. Several research results imply that spirituality situates in the core of wellness. The interrelationships between earth and sky, as well as mortals and divinities, help to understand existential wellness, and to place one in a context. [19] Destination identity has been highlighted by MATKA as one of the key factors providing genuine experiences; tourists value especially deep and meaningful experiences [20]. Thus, many local service suppliers and entrepreneurs are able to produce and provide authentic experiences for tourists. However, the seasonal nature of tourism hinders the service supply exceeding the high-

6 season. As a consequence, the loyal, established tourists, such as second home owners, experience a lack of services. Despite their willingness to spend more time in the second homes, the service structure does not encourage to spend more off-season time in the tourist destinations. 2.4 Wellness tourism and tourist well-being MATKA, amongst other research, has identified uniqueness of the nature in Lapland as one of the most important attraction motivating the destination choice. However, in order to even out the seasonality, the nature as driving force is not enough. Instead, sufficient supply of services is a means to motivate the home owners to allocate their time consumption into off-season periods. By so far, however, the off-season has currently been named as a non-motivational time to engage with the area, especially if compared to the urban primary home environments with substantial service supply. Internationally, third age and well-being are strongly associated; wellness as a form of tourism is gaining more attention, and not least because of the aging population. In western countries, the third agers wanting to maintain an active and healthy life-style are seen as a boosting force for health tourism and spa services. Also a growing interest in specially designed services and programmes has been recognized, a notion underpinned by interviews conducted by MATKA researchers. In terms of sustainability, an increasing demand for well-being, health and fitness as well as stress management products [21] may offer a solution, as wellness tourism is not dependent on any specific season. Therefore, wellness related services could be seen as an answer for the destinations in Lapland trying to even out the seasonality. Services such as spa tourism and spiritual well-being are possibilities to motivate both the second home owners but also new tourists to use the services and to even out the seasonal changes in tourism. Moreover, wellness products and services emphasize the local dimension. Wellness sector may offer new entrepreneurship opportunities for locals. In addition, wellness services enhance local amenity, as local occupants are provided a wider supply of services. Combined with growing number of active second home owners, the utilisation rate is likely to rise, especially off-season. 2.5 Tourist experience and sustainability Tourism destinations in Lapland provide a variety of accommodation types, thus the cottage is the most preferred type of lodging, regardless of socio-demographic or other factors. In addition, tourists seem to appreciate small-scale built environment in destination areas, especially if such an area has an identity closely related to nature-based experiences [22]. However, wellness tourism with close relation to spa services suggests considerable investments in property. The planning of a sustainable nature-based tourism destination requires therefore a profound understanding of the desired balance between the built environment, the amenities and nature, from the tourist point of view. MATKA survey has suggested that tourists are willing to accept changes in the environment, if the tourists are able to experience the true identity of the place. Moreover, the more attached a tourist is to the place, the more interested s/he is about the future plans concerning the destination area. The notion accentuates the comprehension of tourist profiles, including the short-term and longterm expectations regarding the recreational area.

7 2.6 Discussion and Conclusions The amount of second homes in Lapland is increasing. This tendency may imply that the increasing demand for property in the popular nature-based destinations may boost development pressure. Therefore, the question of sustainability in tourism destination areas is challenging. The Lappish nature itself represents restorative and stress-reducing environment; the nature in Lapland could therefore be described as a fundamental ingredient in wellness. However, due to the increasing high-season demand resulting in more active land use planning aiming for the growth of accommodation capacity, the natural environments are being transformed into built resort areas. As a result, the presence and experience of nature on the spot may be threatened. However, despite the obvious apprehension for the ongoing change in the tourism areas, it can be argued that the intact nature is not the only dimension offering relaxation and well-being. Nature-based tourism is sensitive yet the aims for sustainability strive for year-round activities, which in turn demand better utilisation rate and more accommodation. Even though many second home owners are reluctant to rent out the second home in order to increase the utilization rate, second home owners offer an opportunity to increase the demand for off-season services, which in turn underpins the well-being of local community. However, the possibility to retirement migration has not been paid enough attention to in the northern tourist destinations; yet the phenomenon plays an important role regarding the sustainability and local service capacity, especially in terms of health-care and well-being. Therefore, it is essential to gain a more profound understanding of consumption patterns in the tourism destinations in Lapland. What kind of user segments and tourist profiles the destination areas comprises of? Who are the desired target groups? The most important question is, however, who is and who should be responsible for developing the strategies and defining the target tourist groups for a tourism destination. The problems with destination development often relate to the differing interests of the stakeholders concerned. In many cases it has not been clear which party involved is in charge of or willing to take the responsibility of the destination development, its processes and strategies. A commonly agreed vision, co-operation and defined roles will ease the processes, but usually a leading party is needed. Conflicting visions and goals as well as competing strategies and stakeholders can harm and slow down the development in tourist destinations. Therefore, also the second home owners in the destination should be considered as an integral actor during the vision development process managed by the leading party. In strategic planning the accommodation capacity and the terms defined for lot management, involving both rental and selling conditions, need to be taken into account. As this paper suggests, the strategic positioning and targeted potential tourist segments are related to the land use planning. The aims to even out the seasonality claim for co-operation of various interest-groups, which is one of the most essential objectives set for MATKA-project and a focus of further studies. With all the development plans, however, it is essential to bear in mind that nature is by far the most important attraction affecting tourists destination choices.

8 2.7 References [1] Additional information about MATKA project and definition of sustainability available from MERIKOSKI T., From vision to criteria: Planning sustainable tourism destinations. Proceedings paper proposal, Sustainable Building [2] BUTLER R.W., Seasonality in Tourism Issues and Implications, in BAUM T., LUNDTORP S. (eds.) Seasonality in Tourism, Pergamon, 2001, pp [3] Lapin Liitto, Lapin suhdanteet 1/2010, 2010 [4] BUTLER R.W., Seasonality in Tourism Issues and Implications, in BAUM T., LUNDTORP S. (eds.) Seasonality in Tourism, Pergamon, 2001, pp [5] BUTLER R.W., Seasonality in Tourism Issues and Implications, in BAUM T., LUNDTORP S. (eds.) Seasonality in Tourism, Pergamon, 2001, pp [6] Tilastokeskus. Takennukset ja kesämökit. (Accessed Feb 16th, 2010) [7] MCINTYRE N., WILLIAMS D.R., and MCHUGH, K.E., Multiple Dwelling: Prospect and Retrospect, in MCINTYRE N., WILLIAMS D.R., and MCHUGH, K.E. (eds.) Multiple dwelling and Tourism. Negotiating Place, Home and Identity, CABI, 2006, pp [8] PITKÄNEN K., and KOKKI R., Mennäänkö mökille? Näkökulmia pääkaupunkiseutulaisten mökkeilyyn Järvi-Suomessa. Savonlinnan koulutus- ja kehittämiskeskuksen julkaisuja n:o 11. Joensuun yliopisto, 2005, pp. 212 [9] Kesämökkibarometri. Tilastokeskus, p. 88. Available from (Accessed Feb 16th, 2010) [10] DI, Z. X. Does Second-Home Ownership Affect Primary Housing Demand? Housing Studies, Vol. 24, No. 3, pp [11] GIDDENS,A., Europe in the Global Age. Polity Press, 2007, pp [12] DI, 2009; PITKÄNEN & KOKKI, 2005 [13] KARISTO, A., Finnish Baby Boomers and the Emergence of the Third Age. International Journal of Ageing and Later Life. 2007, Vol. 2, no. 2, pp [14] Tourism Trends For Europe. European Travel Commission, 2006, Available from (Accessed April 16 th 2010) [15] TUULENTIE, S., Tourists Making Themselves at Home: Second Homes as a Part of Tourist Careers, in MCINTYRE N., WILLIAMS D.R., and MCHUGH, K.E. (eds.) Multiple dwelling and Tourism. Negotiating Place, Home and Identity, CABI, 2006, pp [16] MÜLLER D.K., HALL C.M., & KEEN C., Second Home Tourism Impact, Planning and Management, in HALL C.M (ed.) Aspects of tourism: Tourism, Mobility, and Second Homes. Between Elite Landscape and Common Ground. Channel View Publications, 2004, pp ; MATKA interviews [17] TUULENTIE, S [18] MATKA interviews [19] SMITH M., and KELLEY C., Wellness Tourism, Tourism Recreation Research, Vol.31(1), 2006, pp [20] Tourism Trends For Europe [21] Tourism Trends For Europe [22] MATKA survey

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