SUMMARY INTRODUCTION PRESENT STATE OF TOURISM... 5

Transcription

1 LAPLAND'S TOURISM STRATEGY

2 TABLE OF CONTENTS SUMMARY INTRODUCTION PRESENT STATE OF TOURISM GLOBAL DEVELOPMENT OF TOURISM TOURISM TRENDS IN FINLAND AND LAPLAND LAPLAND'S MAIN MARKET AREAS LAPLAND'S MARKET POSITION AND COMPETITORS COMPANIES AND INVESTMENTS DEVELOPMENT OF TOURISM ZONES AND TOURIST CENTRES Fell Lapland Northern Lapland Central and Eastern Lapland Regional centre Rovaniemi Regional centre Kemi-Tornio (Sea Lapland and Tornio Valley) Development of tourist centres DEVELOPMENT CONSIDERATIONS CHALLENGES OF TOURISM TRENDS TRAVELLERS GUIDELINES OF FINLAND'S TOURISM STRATEGY STRATEGY LAPLAND TOURISM VISION VALUES GOALS WHAT ARE THE GOALS OF THE STRATEGY? QUANTITATIVE GOALS FOR STRATEGIC GOALS ACCORDING TO SUB-AREA: WHAT ARE THE MEANS FOR REACHING THE GOALS? Tourist centres and tourism zones Markets and customers Marketing Internet marketing, e-commerce and e-business Products, services and year-round tourism activity Accessibility Tourism research, education and development Quality and safety of tourism Land use, construction and infrastructure PROMOTING THE OPERATIONAL PRECONDITIONS OF THE TOURISM TRADE ROLES OF OPERATORS IN DEVELOPMENT WORK STRATEGY FOLLOW-UP AND ASSESSMENT ENVIRONMENTAL IMPACT ASSESSMENT SUMMARY

3 SUMMARY Lapland s vision is Lapland PURE LIFE FORCE near you. According to the vision, Lapland will be the leading destination for sustainable nature and experience tourism in Europe in The most important quantitative goals of the tourism strategy are: - To increase the number of registered overnight stays to 2.6 million by To increase the share of the registered overnight stays of international travellers to 50% of all overnight stays. - To increase tourism income by a three-fold to EUR 1.5 billion by To increase employment in tourism services by a two-fold to man-years by Measures will be implemented in the following sub-areas in order to reach the vision and the quantitative goals set: TOURIST CENTRES AND TOURISM ZONES Development efforts focusing on tourist centres and tourism zones. Promoting the profilation of tourist centres. Supporting the operational preconditions of the tourism industry and entrepreneurship. MARKETS AND CUSTOMERS Seeking growth in the international markets. Keeping domestic demand keen. PRODUCTS, SERVICES AND YEAR-ROUND TOURISM ACTIVITY Theme-based development (nature, wellness, culture, Christmas and winter products). Developing summer travel and utilising the tourism potential of national parks. MARKETING New operating model for international tourism marketing: the Lapland - North of Finland image marketing project and its cooperation with product marketing implemented through regional financing. Increasing cooperation. ACCESSIBILITY Developing air and railway traffic Sufficient public transport and safe roadkeeping RESEARCH, EDUCATION AND DEVELOPMENT High-quality research data support the development of tourism and the competitiveness of businesses. Securing the availability of labour through high-quality education. QUALITY AND SAFETY Securing the fluency of tourism activities. LAND USE, CONSTRUCTION AND INFRASTRUCTURE Combining the needs of different sectors. High-quality planning and construction. 3

4 1. INTRODUCTION Tourism has been recognised as a spearhead sector in the industrial structure of Lapland for a long time. Thanks to its nature, Lapland has excellent preconditions to be an attractive tourist area. It has been exploiting these strengths superbly in the past few decades: the tourism trade has seen strong growth and development. Tourism has an important effect on the regional economy in Lapland. The most attractive travel destinations are situated in regional centres or fells in the middle of sparsely populated rural areas. The development of tourism has helped municipalities and villages maintain or even increase their range of services, which has also benefited the local population. Businesses set up in the tourism industry have created new jobs and brought well-being to small localities and generated positive multiplicative effects in other sectors, too. The first regional tourism strategy was drawn up for Lapland over ten years ago, after which it has been updated several times. A sector-specific strategy is necessary in view of the importance and multidimensionality of tourism. The strategy sets out a joint vision, steers development and defines the focus areas to which public support is targeted. In addition to its vision, values and goals, Lapland's Tourism Strategy introduces the quantitative and strategic goals of the tourism industry, divided according to sub-area. Important development sub-areas include accessibility, marketing, year-round tourism activity, research and security. The goals and measures defined for the various sub-areas are presented in Chapter 4. To ensure effective development, it is important that national, regional and regional development efforts are in line with each other and support the same goals. Lapland's Tourism Strategy is strongly based on Finland's Tourism Strategy to , which was updated in spring The goals of Finland's Tourism Strategy are to develop the tourism sector, strengthen Finland's image as a tourist destination and enhance the basis of its general industrial policy. The content of the strategy is discussed in more detail in Section 3.4. Lapland's Tourism Strategy is also based on Lapland's regional plan 2030 and on Lapland's regional programme Lapland's regional plan 2030 delineates long-term development objectives for Lapland and the strategy for reaching the objectives. The long-term objective in the regional plan is to increase tourism income by a three-fold to EUR 1.5 billion year and employment in tourism services by a two-fold to man-years in the next two decades. 1 Lapland's regional programme includes sets of short-term measures and spearhead projects for the implementation of the regional plan. Tourism-related goals include enhancing attractiveness and strengthening experience and product development expertise (Policy 1), and refining the Lapland brand (Policy 6). Lapland's Tourism Strategy was updated in 2010 following broad preparatory work. A series of conferences and meetings on tourism marketing was arranged between tourism operators at the beginning of the year, resulting in a new operating model for organising regional tourism marketing. The model was developed jointly by the tourism trade, tourist areas and other stakeholders. Efforts to develop tourism marketing were also based on the opinions that operators in Lapland had about cutting down the Finnish Tourist Board's resources and on meetings with the Minister of Employment and the Economy, the Finnish Tourist Board and Finavia. The various tourist areas were visited in spring in order to find out what themes they would like to see included in the tourism strategy. An open strategy day was arranged in May, on the basis of which the vision and main objectives of the tourism strategy were formulated. The content of the strategy was also discussed in several stakeholder meetings. The project steering group was summoned eight times, and the first draft version of the strategy was sent out for comments in October. The draft was specified in January 2011, and official opinions were requested from municipalities and other stakeholders in February. The opinions were taken into consideration and the strategy work was then completed. The board of the Regional Council of Lapland approved the tourism strategy on 27 April Lapland - Arctic, creative success, Lapland's regional plan Lapland - Arctic, creative success, Lapland's regional programme

5 2. PRESENT STATE OF TOURISM 2.1 GLOBAL DEVELOPMENT OF TOURISM The global recession, which began in autumn 2088 and spread rapidly, had a major impact on global tourism. Particularly 2009 was a challenging year in the tourism industry, as international travel decreased by -4.2 % to some 880 million. During the last quarter of the year, however, international travel began to increase again, which shows the flexibility of the tourism industry and its ability to recover quickly when the first signs of economic revival appear. 3 Figure 1 According to the barometer of the United Nations World Tourism Organisation UNWTO, international tourism income decreased by approximately -6% in This marked the halt of long positive growth in global tourism, though the result can still be considered fairly good, compared with the -12% collapse that took place in exports. Despite the falling trend in tourism, there were seven travel destinations in the world that managed to increase their tourism income: Taiwan, Sweden, Australia, Hong Kong, Malesia, Poland and Hungary. 3 Sweden was the most successful Nordic country: the number of overnight stays in hotels increased by 4.7% from the previous year. This is partly attributable to the profitable exchange rate of the Swedish krona. 4 International tourism again began to rise in During the first eight months, the volume of international travel increased by 7% from the corresponding period in the previous year, exceeding the all-time record of The trend was positive in all tourist areas in the world, particularly in Asia, the Pacific and the Middle East. Tourism recovered more slowly in Europe (+3%), due to uncertainty connected with economic development and the volcano eruption in Iceland that caused difficulties in air traffic. 3 According to the UNWTO's forecast, once completed the final statistics will show that international travel increased by +5-6% in Growth is also expected to continue in 2011, though somewhat more slowly. The long-term growth rate is expected to be +4%. 3 UNWTO's long-term forecast is still very positive. It is estimated that international travel will exceed the one billion limit around Growth takes place less slowly in Europe than elsewhere. Although the outlook is positive, economic forecasts warn about excessive optimism. Economic trends are still unstable in a number of main market areas (e.g. in the United States and in Europe). Recovery measures cannot cut down deficit in national economy, and the adoption of stricter taxation will impose additional pressure on indebted households in many countries. Increased unemployment is still the most severe threat to the development of tourism. 5 3 UNWTO World Tourism Barometer 4 Finnish Tourist Board: Trends in tourism, December Kuosmanen, Marja

6 Figure 2, Source: UNWTO 2.2 TOURISM TRENDS IN FINLAND AND LAPLAND 2008 was a very good year for tourism in Finland. However, the number of international travellers began to decrease during the winter season A total of 18.5 million overnight stays were registered in Finland in 2009, of which 4.9 million by international travellers. The number decreased by -4.6% from the previous year and the share of international travellers by -10%. Most visitors arrived from Russia, Germany, Sweden, Great Britain and France. 6 Overseas demand began to recover during the winter season A total of 2.4 million international travellers visited Finland between November and April, showing a one per cent increase from the previous year. International travellers left approximately EUR 720 million in Finland during the winter season, which is about one per cent more than in the previous year. 7 The most recent tourism consumption data are from the Tourism Satellite Account of 2007, according to which total tourism consumption in Finland came to EUR 11 billion in The proportion of international travellers of total tourism consumption was EUR 3.1 billion. Most of the money was spent on passenger transport services and accommodation and restaurant services. Fuels and purchases from shops also number among the most important of travellers consumption items 8 Tourism in Lapland grew steadily in the 2000s until 2008, with the number of overnight stays increasing by an average of 4.5% per year. However, the global recession also cut down the growth of tourism in Lapland. Particularly the number of international travellers began to fall in The poor economic situation completely thwarted the previous year's growth - the number of overnight stays decreased by -4.5% in Finnish Tourist Board: Trends in tourism, December Finnish Tourist Board: Border interview survey Tourism Satellite Account

7 Travellers Registered overnight stays Registered overnight stays in Lapland Source: Statistics Finland Figure 3 Domestic International Total In Lapland's previous tourism strategy, 9 the goal set for registered overnight stays was 2.6 million per year by the end of However, the strategy fell far short of its goal, as only 2.2 million overnight stays were registered in Lapland at the end of It should be noted that before the global recession tourism in Lapland was developing in line with the growth goals set. The recession was particularly evident in Christmas tourism: the number of overseas charter travellers visiting Lapland decreased by almost 27% in Christmas Economic recession was particularly severe in Great Britain from where Lapland receives most of its Christmas visitors. In addition, the weak exchange rate of the British pound in relation to the euro increased the prices of tours to Lapland and collapsed demand. Air travellers in Lapland Source: Finavia Figure Total Scheduled Charter Domestic demand, however, still remained keen in The slight growth recorded for domestic tourism compensated the fall in the number of international travellers and improved the overall situation in the tourism trade. Demand for tourism in Lapland again began to rise in It continued to develop slowly during the first six months. Between June and October, however, the number of registered overnight stays already increased by 3.4% from the previous year. The registered overnight stays of international travellers increased from autumn onwards, and the Christmas season was very lively, thanks to a rise in the number of Russian travellers in particular. 9 Lapland's Tourism Strategy , Regional Council of Lapland Finavia's statistics, which shows both inbound and outbound travellers. 7

8 Registered overnight stays In 2010, Lapland's direct tourism income was estimated to be approximately EUR 595 million. Tourism is labour-intensive, so its employment effect is considerable: approximately 5000 man-years annually. The figure does not include hired labour LAPLAND'S MAIN MARKET AREAS Great Britain, other Central and Southern European Countries, and Russia have been the main tourism market areas for Lapland for a long time. Most of the international travellers arriving in Lapland are British. However, being dependent on the British market has caused problems to Lapland's tourism trade, because the economic recession and the weak pound made the British considerably less eager to travel. The number of registered overnight stays for British travellers in Lapland decreased by -22% from the previous year and the trend continued in The economic recession was in many ways exceptional, and tourism is very sensitive to economic fluctuations even in normal times. To succeed, the tourism trade should be able to attract travellers from several regions so that it is not too much dependent on a few market areas only. Other market areas important to Lapland are France and Germany. Their share of the registered overnight stays in Lapland decreased by some -5% in Demand from the German market has remained more or less unchanged for a long time, apart from annual fluctuations of course. In 2010, the number of overnight stays by German travellers again began to rise. According to October statistics there were no signs of a similar trend on the French market, however, where demand has been falling for several years after the rapid growth recorded at the beginning of the 2000s. There was a slight increase in overnight stays among travellers from the Netherlands, Sweden, Norway and Austria. The popularity of adjacent area tourism was reflected as a slight increase in the number of inbound travellers from Finland's neighbouring countries. Sweden and Norway are very important market areas, particularly for tourism in Sea Lapland (Southern Lapland), Tornio Valley and Kilpisjärvi. The most rapidly growing market area for Lapland's tourism in recent years has been Russia. Although the global economic recession has also plagued Russia, its effects did not yet show to any appreciable extent in tourism demand in Lapland in In fact, registered overnight stays only decreased by -2% from In 2010, the registered overnight stays by Russian travellers again began to rise, and their number in Lapland reached an all-time record during the Christmas season. Registered overnight stays of international travellers in Lapland in , by market area Source: Statistics Finland Figure 5 Great Britain Germany France The Netherlands Norway Russia Switzerland Italy 8

9 2.4 LAPLAND'S MARKET POSITION AND COMPETITORS In 2010, Lapland's market share of all registered overnight stays in Finland was 11.6%, amounting to 16.2% of the overnight stays by international travellers and 9.9% of those by Finnish travellers. Between October and April , Lapland's market share of all travellers was 15.3%, which was slightly less than in the previous year. Most of the travellers visiting Lapland are holiday-makers. In 2010, 80.6% of travellers reported that they were on a holiday journey and 18.4% that their visit was related to work. 10 Sweden holds the largest market share of inbound travellers in the Nordic countries. The share was 36.5% in 2009, as compared with 26.6% for Denmark, 21.1% for Norway and 15.8% for Finland. 11 Finland's closest competitors in the tourism industry are Sweden, Norway and Austria. In 2009, Sweden was the only Nordic country capable of increasing the number of inbound travellers. Overnight stays in Sweden totalled 51.8 million, up by 2.1% from the previous year. The positive development in Sweden is partly attributable to the favourable exchange rate of the Swedish krona. Sweden's main market areas are still Norway and Germany. The effects of the economic crisis and downturn in Sweden mainly show as a falling trend on the market for far-away countries (countries outside Europe) and in inbound international business travel. 11 Tourism demand began to rise in all the Nordic countries in The number of registered overnight stays between January and October increased most in Denmark and least in Finland. The closest competitors to Lapland's tourism trade are Northern Norway and Northern Sweden, where tourism has been developing favourably in the last few years. In Norrbotten, for instance, the number of overnight stays totalled 2 million in 2009, of which by international travellers. Compared to the previous year, the total number of overnight stays increased by 3% and overnight stays by international travellers by 19.9%. In relative terms, tourism increased more in Norrbotten than in any other tourist area in Sweden. 11 Most of the travellers visiting the Province of Norrbotten were Swedish (74%). The next largest group consisted of travellers from other Nordic countries (14%) and European countries (11%). Two per cent of the travellers were from non-european countries. 12 In winter products, Finland's closest competitors are Norway, Sweden and the European alpine countries. In the Finnish Tourist Board's competitor analysis, which is based on product themes, 13 Finland was ranked second in terms of the popularity of the cross-country skiing product right after Norway, but sixth in the downhill skiing and snowboarding product. However, Finland is the number one destination with regard to the following winter products: snowmobile rides, dog sledge rides, reindeer programmes, winter fishing, the Winter Driving School and Ice Breaker Tours. Finland is not among the top destinations in terms of summer holiday products. At best Finland is ranked second in two product themes: canoeing and Wild Life Watching. Finland's competitors in summer travel are Norway, Sweden, Russia and the alpine countries. 13 The Nordic countries differ in terms of the allocations that they set aside for tourism marketing activities. Particularly Norway and Sweden have increased their tourism marketing investments considerably in the last few years. The allocations for tourism marketing in the Nordic countries are presented in the table below. 10 Lapland's tourism statistics Facts about tourism in Sweden Province of Norrbotten, Facts and Perspective 13 Competitor analysis for the Finnish tourism market 9

10 Governmental funding of national tourist organisations in the Nordic countries In Euros (1000) * Change Change, % Denmark Finland ,9 % Norway ,2 % Sweden ,3 % * The budgets for Norway and Sweden for 2010 are proposals Source: Finnish Tourist Board 2009 Figure 6 In , the operational budget of the Finnish Tourist Board (MEK) was cut from EUR 16 million to EUR 9.7 million, i.e. by some 34%. This has impaired the Finnish Tourist Board's operation and clearly also the visibility of Finland in the various market areas. The Finnish Tourist Board has had to close down some of its offices abroad and also reduce the number of its representatives considerably. Sweden, however, increased its marketing budget by 36% in 2010 and Norway by 7% from the previous year. Both the countries have reacted to the challenging market situation by strengthening their marketing efforts, which has proved profitable at least for Sweden. In Lapland, international tourism marketing activities were pursued at the regional level by Lapin Markkinointi Oy (Lapland Marketing Ltd) until Septembe The corresponding organisation in Norrbotten is Visit Sweden. Closer regional marketing cooperation is also carried out in Northern Norway, which established the Visit Northern Norway organisation that is responsible for the joint marketing of Tromsö, Nordland and Finnmark. 2.5 COMPANIES AND INVESTMENTS According to a tourism industry report, the economic situation has increased uncertainty in the tourism industry in Finland. The profitability of companies has decreased and only few investments were made in the tourism industry in 2008 and However, companies are now not as badly indebted as they were during the economic recession of the early 1990s. In spite of the prevailing economic situation, they have positive profitability expectations for the near future. 14 Several major investment projects were completed in tourist centres in Lapland in The implementation of investments was impaired by a rise in construction costs and problems in the availability of construction labour in The economic downturn made it more difficult for companies to receive financing, which slowed down investments. 14 However, there was a turn to the better in 2010, which saw the launch of new investment projects. 14 Tourism industry report 9/

11 Turnover of accommodation and food service activities and programme services in Lapland in EUR Source: Toimiala Online Programme services according to Finnish Tourist Board's sector report I Accommodation and food service activities Total Figure 7 The turnover of the accommodation and restaurant business in Lapland was about EUR 300 million in The fastest growth was recorded for sectors connected with programme services. It is difficult to monitor trends, however, as there is still no separate economic activity class for tourism programme services, i.e. estimates must be based on the sum of several classes. The classification of economic activities was specified in Here, seven economic activity classes are included in programme services, corresponding to those of the tourism sector report published regularly by the Ministry Employment and the Economy, for instance. 15 The classification of economic activities has been revamped, so the approach featured here is not fully comparable with the table presented in the previous tourism strategy. In addition, it should be noted that the figures may overlap for large-scale companies. Booking services, for instance, may also include other accommodation. TOURISM INDUSTRY IN LAPLAND 2009 Turnover Establishments Personnel (EUR 1000) Accommodation Hotels and similar accommodation Holiday and other short-stay accommodation Camping grounds, recreational vehicle parks and trailer parks Other accommodation Food and beverage service activities Restaurants and mobile food service activities Event catering and other food service activities Beverage serving activities Programme services Other reservation service and related activities Museum activities Botanical and Zoological gardens and nature reserves activities Operation of sport facilities Fitness facilities Activities of amusement parks and theme parks Skiing resorts Total Source: Statistics Finland, Standard Industrial Classification, TOL 2009 Classification according to Finnish Tourist Board's sector report Figure 8 15 Tourism industry report 9/

12 Investments have been made in the tourism industry in Lapland in the last decade. It is generally believed that tourism in Lapland is based on public aid, which does not hold true, however, as most tourism investments are privately funded. The Regional Council of Lapland and the Municipalities of Kittilä and Kolari have together drawn up a survey of the share of public and private financing in tourism investments. According to the survey, construction project investments in Levi and Ylläs totalled some EUR 1000 million in Only some 3% of state money was put into these investments in the form of business subsidies and road, water and environmental aid. The construction volume estimate is based on the gross floor areas indicated in building permits. Most of the construction projects involve privately funded holiday cottage investments. In the long term, municipalities will receive e.g. municipal engineering fees in return for the money that they invest in regional development. The State has received millions of euro in the form of land sales income and value-added tax from the tourism construction projects implemented in Lapland. Among other things, the projects have also indirectly benefited the entire housing construction business in Finland, brought income to many SMEs and improved employment considerably. Public aid has been allocated to important projects, such as the Scenery Road in Ylläs, which promote the development of tourism. Projects of this kind have often triggered a number of private investments and boosted regional development. The number of ERDF and ESF tourism projects funded during the current programming period is shown in the table below. When the business subsidies allocated by the Lapland Centre for Economic Development, Transport and the Environment, operational environment development aid, national employment-based investment aid, EAFRD projects, Interreg projects and regional money are added to the figures, the amount of aid amounts to approx. EUR 35.7 million. Project size has increased during the current programming period, which has also improved their effectiveness. Many of the projects are implemented by broad cooperation networks. Tourism projects during the programming period (includes investment aid obtained from the Centre for Economic Development, Transport and the Environment) Number Reserved / committed total costs EU + State ERDF Priority 1: Promoting entrepreneurship 32 Estimation Priority 2: Innovations, networking, competence structures Priority 3: Accessibility and operational environments Total ESF Priority 1: Developing work organisations, labour and businesses, entrepreneurship Priority 3: Competence and service systems Priority 4: Cooperation Total ERDF+ ESF TOTAL Figure 9 Source: Regional Council of Lapland, situation 31 December

13 2.6 DEVELOPMENT OF TOURISM ZONES AND TOURIST CENTRES The centre-based tourism development strategy, which was adopted in the early 2000s, has proved successful. In the previous strategy for , tourist centres were divided into four groups based on their development phase: strong, intermediate, developing and other areas. The focus in targeting public financing was to support intermediate and developing tourist centres and boost their positive growth. Networking between tourist centres and the surrounding areas was promoted in order for the centres to offer jobs and income to the region as widely as possible. The figure shows the distribution of EU funding (EU + State) for tourism projects between different subregions in percentages The calculations include tourism development projects and the business subsidies and investment aid paid by the Lapland Centre for Economic Development, Transport and the Environment in the 'Experience Clusters/Tourism and Experience Industry' priority area by the end of They do not include projects covering the entire region, supra-regional projects or joint projects involving several subregions. Figure 10 During the previous tourism strategy period , tourism projects were mainly financed for the Eastern Lapland and Northern Lapland sub-regions. The strategy ranked Pyhä-Luosto and Salls as intermediate tourist areas and Suomu as a developing tourist area. According to this figure, financing guidelines emphasising intermediate and developing tourist areas have been put into practise. In Saariselkä, which is a strong tourist area, financing has been allocated among other things to measures to refresh its image e.g. with the help of an architectural design competition. It is difficult to assess the development of tourist areas during the previous strategy period, due to the onset of economic recession in the middle of the period, which hampered the operation of all tourist areas. It can be said, though, that intermediate tourist centres survived the recession better than strong ones. This can be seen in the economic review table of the Regional Council of Lapland, which is based on the situation in summer 2010 (see page 17). The table shows trends in turnover as compared with the index year In the light of registered overnight stays, Salla survived the years of recession best - it was even able to increase the number of overnight stays. The number also increased in Sea Lapland in Major investment projects were completed in the area, including the 'Rajalla' shopping centre, which had a positive effect on shopping tourism. Tourism network cooperation and organisation are currently being developed in the area. It can be estimated based on the above indicators that the results of investments in intermediate and developing tourist areas have been at least moderate. In view of the whole, it is also important to make sure that strong areas remain competitive. Statistics Finland has been publishing a more exhaustive register of overnight stays since 2007, which takes into account not only registered overnight stays, but also stays in holiday cottages reserved through booking offices. Although the statistics does not include all tourist centres in Lapland, it indicates that the total 13

14 Overnight stays number of overnight stays was largest in Fell Lapland and that development has been favourable. The income effect of tourism was of course also largest in Fell Lapland (see figure on page 15). Overnight stays in some tourist centres in Lapland in (including registered overnigth stays + overnight stays in cottages reserved through booking offices) Pyhä-Luosto Saariselkä Ylläs Levi Source: Statistics Finland Figure Lapland's regional plan includes a target map of the regional structure in 2030, in which the idea of networking has been extended by introducing tourism zones (see page 12). The aim in the future is to establish broad tourism zones around tourist centres, together with a cooperation network between villages surrounding the centres. The tourism zones are marked in the map with green colour and linked by an accessibility network consisting of airport influence areas and the road and railway transport system. Transport development corridors are indicated by black lines. The effect of tourism on regional structure and the service range is most prominent in Fell Lapland, Northern Lapland and Eastern Lapland. The operational tourism zone of Fell Lapland consists of the tourist centres of Levi, Ylläs, Olos and Pallas, which are networked with the built-up area services available in Kittilä, Kolari, Muonio and Hetta in Enontekiö. The Fell Lapland tourism zone also includes the tourism cluster of Kilpisjärvi. The core of the tourism zone of Northern Lapland consists of the chained tourism services of the Saariselkä- Ivalo-Inari area. The tourism zones of Central and Eastern Lapland, in turn, are situated around the tourist centres of Pyhä-Luosto, Salla and Suomu. The services of municipal built-up areas extend the range of services available in the tourist centres. The tourism services of Kemijärvi-Suomu and Salla are functionally linked southwards with those of Ruka-Kuusamo and Posio. The Eastern Lapland tourism zone is situated in the influence area of two airports: Rovaniemi and Kuusamo. Rovaniemi and Kemi-Tornio are regional centres where tourism services enjoy a strong position along with other central operations. Ranua is operatively linked with the Rovaniemi tourism zone. 2 The next sections of this chapter discuss tourism development in Lapland on the basis of the zonal approach presented in the future vision. The zonal model as such is an effective method for drawing up a general description and overview of trends in tourism. It is impossible to go into detail here but the aim is rather to provide an overall picture of tourism in Lapland particularly from the international perspective. The zone names in the zonal model were used as headings in the various sub-sections, so they do not directly correspond to sub-regional boundaries, for instance. 14

15 REGIONAL STRUCTURE, DEVELOPMENT ZONES AND DEVELOPMENT CORRIDORS IN 2030 Figure 12, Source: Regional plan Fell Lapland The operational tourism zone of Fell Lapland consists of the tourist centres of Levi, Ylläs, Olos and Pallas, which are networked with the services available in the built-up areas of Kittilä, Kolari, Muonio and Hetta in Enontekiö. The tourism cluster in Kilpisjärvi is operatively networked southwards and northwards towards Norway. The Fell Lapland tourism zone is situated in the influence area of two airports - Kittilä and Enontekiö. Railway traffic is operated through the Kolari railway station. Ylläs and Levi have been the fastest growing tourist centres in Lapland in the last few years in terms of turnover 16 Their positive development stems from factors such as continuous land use planning, operational strategies, close cooperation between the centres, and the development investments made by municipalities. New development was boosted in Ylläs by the opening of the Scenery Road in 2006, which also promoted many other investment projects, such as the completion of new lower lift stations on both sides of the fell, a gondola lift, chair lift and more accommodation facilities. The most impressive investment project in Levi was the building of the Levi Market Square, which was completed in Other investment projects carried out in Levi in the last few years include the building of the Meeting and Congress Centre Summit, the Panorama Hotel, and the extension of Levi Spa and golf course. Levi and entire Lapland have enjoyed broad international visibility through the Alpine Ski World Cup, which is arranged in Levi on an annual basis. Pallas-Yllästunturi National Park and the Kilpisjärvi area are popular outdoor recreation and hiking destinations. However, the fell nature is sensitive to the negative effects of tourism, which places special requirements on developing tourism particularly in these areas. Therefore, it is important to pursue strategic long-term planning and take sustainable development into consideration in all tourism development efforts. 16 Lapland economic review 1/

16 Public debate over the extension of Pallastunturi Hotel is a good example of how important it is for Lapland that tourism is developed in a way that does not harm or change too much the original attractiveness of the destination. On the other hand, leaving things as they are is not a good idea either, but all travel destinations should be developed by setting out from the potential that they offer and by taking account of the principles of sustainable development and economic profitability. Tourism in Enontekiö and Kilpisjärvi has developed positively in the last few years and the range of tourism services has been diversified. The Kilpisjärvi area will be developed in accordance with development plan 2020, which must be taken into consideration in tourism construction projects and the positioning of operations in the area, for instance. In the last few years, tourism in Kilpisjärvi has been boosted by the increasing number of Norwegian tourists, for example. The tourist centres in Fell Lapland have managed to develop a versatile, fairly distinct profile despite the fact that the destinations offer similar types of services. At least domestic customers know Levi for entertainment, Ylläs for cross-country skiing, and Hetta and Kilpisjärvi for peace of nature. Olos tourist centre, in turn, serves business customers and vehicle manufacturers testing their vehicles in cold winter conditions Northern Lapland The core of the Northern Lapland tourism zone consists of the chained tourism services of the Saariselkä- Ivalo-Inari area. The service range is complemented by the services available in the built-up area of Sodankylä. Situated right beside Urho Kekkonen National Park, Saariselkä tourist centre offers access to extensive hiking and skiing routes in Lutto, Tsarmitunturi and Sompio. As a skiing centre, Saariselkä enjoys the profile of a traditional destination for families and keep-fit enthusiasts. Although Saariselkä offers a broad range of high-quality services, it will have to reform its image in the future in order to remain an attractive destination for young travellers, too. The most recent investments include Giellas, which offers conference services, for instance. In addition, the Saariselkä tourist centre and traffic arrangements in the centre of Saariselkä have been developed based on proposals submitted in an architectural design competition. An important element in the service range of Northern Lapland is its gold-washing traditions. The gold theme is visible in Tankavaara gold village in particular. Making use of the history of gold washing in tourism enables one to develop new tourism products and geotourism. Other major attraction factors in Northern Lapland are the Sámi culture and reindeer husbandry. Sámi Museum Siida in Inari and the Centre for Sámi Culture, which will be completed in 2012, introduce visitors to Sámi traditions and the lively Sámi culture. The River Tenojoki, in turn, annually attracts a number of fishing travellers to lure salmon Central and Eastern Lapland The tourism zones of Central and Eastern Lapland are situated around the tourist centres of Pyhä-Luosto, Salla and Suomu, whose service range is complemented by the services of municipal built-up areas. The tourism services of Kemijärvi-Suomu and Salla are functionally linked southwards with those of Ruka- Kuusamo and Posio. The Eastern Lapland tourism zone is situated in the influence area of two airports: Rovaniemi and Kuusamo. Lapland's previous tourism strategy classified the tourist centres of Central and Eastern Lapland as intermediate and developing tourist centres whose development will depend on public support in particular. The investments show as positive development in all three centres: Pyhä-Luosto, Sallatunturi and Suomu. Pyhä-Luosto relies on an area plan based on the pedestrian village concept. A new ascend road and ski bridge have been completed in Pyhä as part of the plan, together with slope investments and a hotel extension. The construction of a new nature centre will soon begin in Pyhä-Luosto National Park, scheduled for completion in Actions to develop Sallatunturi are based on Sallatunturi 2020 development programme. Salla is known as a non-crowded family holiday destination and also as an international Alpine ski competition and training centre. It enjoys the profile of a peaceful tourist centre that has successfully marketed itself under the theme 'in the middle of nowhere'. A Pan Village has been set up in Salla, offering cottage accommodation close to Oulanka National Park, which has received the Pan Parks certificate. The Dutch are still an important target group in Salla, and the number of Russian travellers has also increased in the last few years. 16

17 New, high-quality cottage accommodation has been built in Suomutunturi in the last few years. In addition, there are two hotels, of which Hotel Suomutunturi is currently being refurbished and extended. Slope investments have also been made. The City of Kemijärvi aims to have a ski-flying jump and slope centre built at Suomu in the future. Posio is renowned for traditional tourism activities and ceramics. Pentik-mäki is a well-known cultural and shopping travel destination. The Savukoski area makes use of the wilderness theme in developing its tourism services Regional centre Rovaniemi Tourism plays an important role in regional centres, along with other central functions. The tourist area in the Rovaniemi district consists of the centre of Rovaniemi, the surrounding villages, and Ranua. Rovaniemi can be called a tourist centre, and with good reason, because it is Finland's second largest international tourist venue right after Helsinki. In the winter season , for instance, international travellers made up 64% of all travellers visiting Rovaniemi. 17 Tourism in Rovaniemi largely relies on the Christmas product. The City of Rovaniemi was granted a European Community Trademark as the Official Hometown of Santa Claus in spring Santa Claus enjoys high visibility not only in the Santa Claus Village in the Arctic Circle and the Santa Park, but also in a number of events arranged throughout the year. In addition, Rovaniemi Airport is called the Official Airport of Santa Claus. Rovaniemi is characterised by the winter season remaining lively even after the Christmas season, and growing meeting and congress tourism. It is a lively city, which on the one hand is an asset, but may place challenges on long-term tourism development on the other. To maintain its attractiveness as a travel destination in the future, Rovaniemi will have to reform itself, pursue product development work and make new investments in tourism. The key strength of Ranua is its zoo, which attracts about visitors every year. New service facilities, such as a caravan area and a programme service centre, have been set up close to the zoo. There are also plans to increase accommodation capacity. Ranua has successfully utilised its reputation as a cloudberry area: it has turned its annual cloudberry market into a major tourist event. Rovaniemi and Ranua cooperate in marketing tourism and among other things have set out to develop summer tourism by introducing a joint summer pass that covers all the attractions of the area Regional centre Kemi-Tornio (Sea Lapland and Tornio Valley) In the tourism context, the Kemi-Tornio area is generally known as Sea Lapland. The Sea Lapland tourism zone consists of the municipalities of Tornio, Keminmaa, Tervola, Kemi and Simo. The City of Tornio has been developing tourism through cross-border cooperation together with the City of Haparanda in Sweden. The tourism services of Tornio Valley also depend logistically on Kemi-Tornio Airport, so the border river area can be considered part of the same tourism zone and transport development corridor. Sea Lapland largely relies on the winter season. Its most attractive destinations are the world's largest Snow Castle and ice-breaker Sampo in Kemi, backed up by extensive programme services. The City of Kemi has launched the planning of a tourism master plan extending to In addition, the Sarius well-being centre project is currently in progress and has now reached the zoning phase. The Port of Kemi has been named the Port of Santa Claus, which will open up new opportunities for developing cruise tourism. Tornio enjoys an important position as a border town: it is one of the three most lively international bordercrossing points in Finland. Tornio has seen major retail business investments in the last few years, including the Rajalla shopping centre. Together with the City of Haparanda, Tornio makes up an attractive shopping travel destination. Large traveller volumes already visit the area, and the aim is to have travellers stay in the area longer in the future. Sea Lapland aims to start tourism strategy and brand work in the next few years, which will cover the entire area. The focus areas in regional development are the development of e-commerce and e-marketing and utilisation of the area's rapidly developing industry for the purposes of tourism, too. The intention is to change 17 Development of tourism in Rovaniemi and its effect on regional economy. 17

18 Index 2005=100 the regional organisation of Sea Lapland, which has been run as an association so far, into a limited liability company. This will make the operation more efficient and allow the setting of long-term objectives. The assets of Tervola, Keminmaa and Simo in tourism are nature and related activities. There are three important recreational rivers in the area: Simojoki, Kemijoki and Tornionjoki. There is considerable growth potential in tourism based on nature, water areas and archipelago in Sea Lapland. The attractions of the area include the Bothnian Bay National Park, which is Lapland's only maritime national park. The River Tornionjoki in the Tornio Valley is the longest untamed river in Europe and highly valued for its salmon stock. Persistent work has been done in the area in order to develop fishing tourism. In addition to fishing, tourism in the area essentially relies on the 'meänkieli' culture based on a local dialect, events and different types of theme-based products. Work is currently in progress for drawing up the first development plan in the Aavasaksa area, which collaborates with Swedish tourism entrepreneurs in developing tourism Development of tourist centres Following a long period of favourable development, the effects of economic recession can clearly be seen in Lapland's tourist centres. The economic review 2/2010 of the Regional Council of Lapland 18 shows trends in tourism-related turnover and employment in tourism services during the first half of Trends in the turnover of tourist centres is shown in figure x. The turnover of all tourist centres, particularly Levi, decreased between December 2009 and May Turnover of tourist centres (company groups) by region 01/ / / / / / / / / / / / / / /2010 Levi Ylläs Rovaniemi Saariselkä Pyhä-Luosto Meri-Lappi Source: Statistics Finland, Tailored trend indicator service Figure 13 Trends in the number of tourist centre personnel also continued to develop poor during the first half of Apart from Sea Lapland, the number of personnel decreased in all tourist centres faster than during the previous six-month period. The trend was particularly evident in Ylläs. Economic data are not yet available for the second six-month period of According to other statistical data, however, tourism began to grow again in autumn Compared with the previous year, the number of registered overnight stays per month rose from August onwards, but fell slightly short of the previous year's level in December. The booking situation for the winter season looks much better than that of the previous year. 18 Economic trends in tourism (2/2010) 18

19 Registered overnight stays in Lapland by month I-XII 2009 and Registered overnight stays Source: Statistics Finland Figure 14 Jan Fed Mar Apr May June July Aug Sep Oct The tourism trade in Lapland has strong faith in the future. The prospects and service needs of tourism entrepreneurs were investigated in Lapland's KOTTI project, which was implemented by the Lapland Centre for Economic Development, Transport and the Environment. 19 The study was carried out in the form of company interviews in According to the results, tourism entrepreneurs considered the outlook for the next 12-month period better than the current situation. One third of them expected their business to grow during the next year but 12% that they would have to cut down their business. More than a half reported that their turnover would remain as it is. Development prospects were slightly better in the tourism industry than in other sectors on the average. Tourism entrepreneurs expected the number of personnel to increase by some 8% during the next two years. The growth estimates of Lapland's tourist centres for the next few years are shown in the table on next page. The table is based on estimates drawn up by regional tourism organisations and municipalities in 2010 about future investments and tourism development in the areas. A table showing corresponding information from 2007 was presented in the previous tourism strategy. It should be noted, however, that the data are based on estimates and should therefore only be used as guidelines. The table mainly reflects how the tourism industry currently perceives the near future. The number of registered overnight stays in the table only includes the tourist centres and areas that replied to the inquiry (cf. registered overnight stays for whole Lapland 2009, 2.2 million). Statistical limitations should also be taken into account when looking at the number of registered overnight stays. The accommodation statistics of Statistics Finland contains information on accommodation service companies with at least ten accommodation units (rooms, cottages or caravan places). Thus much of cottage accommodation, which is considered private (fee-paying) accommodation, is excluded from the statistics. In Lapland, most of the accommodation capacity consists of holiday cottages and accommodation reserved through booking offices, for example. The figures indicating unregistered accommodation capacity in the table are estimates obtained from regional organisations. For larger tourist centres, the estimates are based on the constant monitoring of water consumption, which can be considered a reliable method. As a result, it has been estimated that only one third of the accommodation capacity in Lapland has been registered. The value of planned tourism investments in Lapland by 2015 is EUR 721 million. The sum includes investments in the basic infrastructure and operational environment, and in the actual tourism business. 19 Lapland's KOTTI project, company interviews

20 GROWTH ESTIMATES FOR THE LARGEST TOURIST CENTERS CURRENT STATE Registered accommodation capacity (Statistics Finland: All accommodation establishments, beds) Estimated unregistered accommodation capacity (beds) Registered overnight stays in 2009 (Statistics Finland) Direct tourism income EUR million (most recent figure) Further information: Levi Ylläs Saariselkä Pyhä-Luosto Rovaniemi Sea Lapland Muonio (Olos, Pallas) Salla *** Suomu Enontekiö-Kilpisjärvi Haaga-Perho s study Total Registered capacity in 2015 (beds) Unregistered capacity in 2015 (beds) OBJECTIVES Registered capacity in 2020 (beds) Unregistered capacity in 2020 (beds) Registered overnight stays Registered overnight in 2015 stays in 2020 Direct tourism income in 2015 Direct tourism income in 2020 Levi Ylläs Saariselkä Pyhä-Luosto Rovaniemi Sea Lapland Muonio (Olos, Pallas) Salla Suomu *** *** Enontekiö-Kilpisjärvi Total Investments in basic infrastructure and the operational environment in 2015, EUR million Investments in basic (roads,municipal infrastructure in 2020, EUR engineering, water, million wastewater and environmental construction, routes etc.) INVESTMENTS Investments in the tourism trade in 2015, EUR million (accommodation, restaurant and programme services; lift and slope investments etc.) Investments in tourism trade in 2020, EUR million Construction of private cottages in 2015 (gross floor area) Construction of private cottages in 2020 (gross floor area) Levi Ylläs Saariselkä *** *** Pyhä-Luosto Rovaniemi 10, Sea Lapland *** *** *** *** *** *** Muonio (Olos, Pallas) Salla 3, Suomu Enontekiö-Kilpisjärvi Total Total value of investments in Figure 15, Source: Tourist areas and municipalities of Lapland, Regional Council of Lapland.

21 3. DEVELOPMENT CONSIDERATIONS 3.1 CHALLENGES OF TOURISM The tourism market has become global in the last few years, which has led to even keener competition. However, a factor having changed tourism even more profoundly during the past decade is the Internet. Tourism services are now sold through the web, which places Lapland's tourism product in an equal position with any other tourism product in the world. Put the other way around, this means that if a tourism product is not in the Internet, it does not exist at all to customers. Global competition also means that in order to succeed, a travel destination or an area must more effectively network with others, enter cooperation and seek to make its product range appear attractive to international customers. The quick development of the Internet has also placed requirements on how tourism products are presented in the web. It has been a long time since homepages and contact information were sufficient in marketing products. Networking with other operators and entering different types of tourism portals are today vital for tourism entrepreneurs. Finland's tourism portal VisitFinland is one channel for presenting tourism products and planning travel. However, a mere presentation portal is not enough if it is not linked with a sales tool. In the future, the most competitive tourism products will be those that stand out most easily among the vast range of products available through the Internet (search engine optimisation), are recommended by other travellers (social media) and offer the most customer-friendly means for packaging, booking and purchasing a journey (sales and booking systems). Climate change will affect travel in a variety of ways. There will be a climate change in tourism destination areas in the long term, which will affect the environment, the types of tourism products and services offered, and the overall attractiveness of the destination. The best example of this is the occasional lack of snow in winter sports centres in Central Europe. On the other hand, many cities in Central and Southern Europe suffer from heat and congestion in summer, which may increase the attractiveness of Northern European countries among travellers. Climate change also shows in consumer behaviour by increasing environmental awareness among travellers. As in all consumption today, ecology is also an important competitive element in tourism products and services. Travellers are today concerned about the carbon footprint of their journey. Air traffic, for instance, has seen the introduction of a voluntary emission fee by means of which passengers can compensate for the environmental load caused by the flight. The funds collected through emission fees are used to finance measures to combat climate change. 21 This shows how the tourism industry has reacted to the trend by recognising the environmental effects of tourism and offering a broader range of sustainable alternatives. 'Green tourism" has also proved profitable business. 20 Ecologically sustainable tourism has become more popular, and in recent years travellers have also become interested in socially and culturally sustainable tourism. Travellers are today well aware of the impact of tourism on the population, economy and environment of the destination area. They often want to direct consumption to the benefit of local people's well-being. Another reason behind the growing popularity of cultural tourism may be the desire to maintain cultural characteristics in the face of globalisation. Information on sustainable tourism is available from the Association for Fair Travel, for example. 21 Cutting down air traffic does not seem a very probable alternative in the future despite the many challenges that it has faced in recent years. The volcano eruption in Iceland in April 2010 and the resulting ash plume mixed up flights throughout Europe, at the same time showing how dependent the world is on air traffic. In addition, the profitability of air traffic has been falling in the last few years, and the operation of most airlines is threatened due to financial difficulties. Be that as it may, airborne tourism will presumably maintain its current position in the future. It is likely that the efficiency of air traffic will be improved: the number of airlines will decrease, larger aircraft will be introduced and new technical solutions adopted to allow better energy efficiency. The popularity of other means of transport, such as railway and waterborne tourism, may increase, though they do not yet threaten the position of air traffic. There will probably be a slight decrease in airborne business travel, as companies will move over to video conferencing. 20 Safety is one of the most important factors affecting tourism. There are examples around the world showing how environmental catastrophes, international terrorism, pandemics or other similar safety threats, if 20 Travelling light Instructions for fair travellers

22 materialised, can cause severe damage to tourism in the involved area. The most recent example of this is the oil catastrophe in the Gulf of Mexico, which will have a major impact on tourism in the area. In the future, one of the most important competitive elements in the tourism trade will be its ability to anticipate risks and manage safety. Even if catastrophes could not be avoided altogether, anticipating and preparing for them will help the tourism trade survive from crises better and control the negative publicity arising from them. The operational environment in tourism is global, so safety must also be taken into consideration in Finland, even though the society here is safe and operates smoothly. The fluent operation of the tourism trade can be ensured through safety security work. 3.2 TRENDS Finland's tourism strategy, which was updated in 2010, introduces three main trends that influence tourism and have become more prominent in the last few years: emphasis on environmental awareness, increased significance of the Internet and fragmentation of customer groups. 22 The Internet and the emerging of social communities have changed and will continue to change not only consumption and consumers, but also tourism and travellers. According to futurologist Anna Pollock, 23 the change is much broader than generally assumed. The Internet has become a shared venue for work and recreation where everybody is linked with everybody all the time. Social communities, in turn, have become new channels of influence and interaction, in which everybody has the change to become heard. The opportunities of the Internet have been successfully exploited by President Barack Obama, for example, who used the crowdsourcing method in his presidential campaign. With the method, the public could choose and vote themes that they would like to see included in the campaign. Effective means in the Internet, along money, are time, attention and trust. Today consumers more trust in estimates drawn up by their peer groups in the Internet than in traditional marketing. In consequence, the reputation and transparency of operators now play a more prominent role. Consumers have more power in product marketing and in generating added-value for the product. Besides, all product users also have the potential to market products or disseminate information. 23 In tourism marketing, the above means that it is now even more difficult to control the marketing message of a destination or product. Marketing involves presenting images to attract customers, yet keeping in mind that the expectations raised by the images must also be met. If the customer's expectations are not met, the comments that dissatisfied customers will disseminate over the Internet can quickly damage the company's reputation. The quality of products or destinations and constant quality monitoring are today even more important in view of competition. Pollock also takes up the way in which the Internet changes the relation between work and leisure time. Work no longer depends on time or place and people spend much of their leisure time at the computer or are constantly connected to the Internet. Therefore, in future a holiday can simply mean that one is disconnected. 23 This also has to do with downshifting, which involves making life simpler and keeping consumption moderate. It also means trying to escape from the tiring rat race and looking for a higher quality of life. 24 Downshifting shows in tourism in the increasing popularity of wellness tourism, for instance. 25 According to wellness economy expert Joseph Pine 26, shifting from wellness economy to a transformation economy is a new trend in consumer behaviour. In wellness economy, customers are ready to pay for the chance to experience things through a product or service. Although experiences cannot be guaranteed, the actions taken to create them usually give the product new features and improve its attractiveness and quality. The experience approach has thus played an important role in developing tourism products and services. Customers rate experience-based products in terms of their authenticity. By standards of authenticity, also products representing built reality (e.g. Disneyland) can be accepted, if they 'genuinely' match the theme on which they are based Finland's Tourism Strategy to Pollock, Anna Kulutus.fi 17 August Kauppalehti.fi 13 June Pine, Joseph

23 The object of exchange in a transformation economy is change as experienced and observed by customers. They are directed towards the change through different types of service or experiences. Their individual needs are taken into consideration carefully and fulfilled through highly customised products and services. The most concrete manifestations of the transformation economy include weight-loss camps or make-overs based on cosmetic surgery. Transformation economy also takes the form of customers seeking new content and meaning for their lives. In tourism, this shows in an increase in volunteer tourism. 27 Favouring voluntary work and the quest towards sustainable tourism also reflect a broader, quickly spreading trend that involves the growth of a global sense of community and having a sense of responsibility over global events. Travellers are today more conscious about things and want to influence them through their travel choices while seeking to find a meaning to their lives. The above findings are also confirmed by researcher Markus Keränen, who points out that limiting needs and redirecting them radically is becoming a trend in its own right. This can already be seen in material consumption. Economising and being modest and conscious about spending are characteristic of a growing customer segment. 28 The Finland Futures Research Centre of the University of Turku regularly publishes studies and surveys on foreseeing future. 29 Another excellent tool for monitoring trends is the Internet, which contains a number of trend analyses, though it should be used with a critical eye. An interesting blog writer is M. Koskelo, who has contributed the following list of prevailing and rising trends: a culture of prohibitions, exchange economy, shared use, self-sufficiency, playfulness, hyper-locality, non-poisonous, transparency, self-improvement and expanded reality. 30 Time will tell which of these trends will spread and remain. One should assess them critically and rely on personal judgement. 3.3 TRAVELLERS Domestic travellers are the largest customer group in Lapland. Their share of all travellers visiting Lapland is 65%, most of them holiday travellers. In winter, the largest visitor group in Lapland is people on a skiing holiday, while in summer most of the visitors are hikers, travellers on a round trip or people coming to Lapland to admire the colours of autumn in nature. Most of the domestic travellers come to Lapland by car and stay in cottages. They often visit Lapland frequently. It is fairly well known how domestic consumers behave. Tourism businesses often enjoy well established customer relations that have lasted for years. However, they often focus on international customers in their business and particularly in developing new products. Yet the importance of domestic customers, too, should be recognised and their needs addressed better. International customers arrive in Lapland from 5-6 main market areas in Central and Southern Europe. Apart from such demographic division, quite little information is unfortunately available on things like who the customers are, what values they represent and why they have chosen Finland or Lapland as their destination. Entrepreneurs having been engaged in the tourism business for a long time know their customers through experience, but at the regional or national level only demographic statistics are available. Gaining better knowledge of travellers will be one of the most important competitive assets in the tourism industry in the future, because travellers can arrive from any country. Lapland's tourism is engaged in global competition through the Internet. The number of indices, i.e. individual travellers, is increasing all the time. In order to perform targeted marketing actions in the Internet, it is no longer enough to know that an average Christmas traveller is a middle-aged, middle class British man or woman with family. For successful marketing, it is essential to outline the psychographic factors connected with travellers and recognise different types of consumer groups, or 'tribes'. The Finnish Tourist Board has selected 'modern humanists' as the primary target group of its marketing actions, because travelling to a country like Finland matches their values and attitudes. It is estimated that some 15 per cent of the world's travelling population belongs to this group. Finland's tourism brand is Visit Finland, built on four C's (Creativity, Cool, Contrast and Credibility), which form the cornerstone of communications. Actual marketing communications focuses on three themes: 'Silence, please', 'Wild & Free' and 'Cultural Beat' The Complete Guide to Volunteer Tourism 28 Keränen, Markus Finland Futures Research Centre 30 M. Koskelo Finnish Tourist Board, Marketing 23

24 Modern humanists are travellers who have already seen the world's metropolises once. They are looking for something that is new but still safe. Individualism is important to this group. In addition to 'modern humanists', there are other consumer groups that can be identified on the basis of their consumer behaviour and utilised as the basis of segmentation in tourism. These include: LOHAS (lifestyles of health and sustainable), which according to trend forecasts is a strongly growing consumer segment. LOHAS consumers are guided by the principles of sustainable development, social responsibility, soft values and healthy living habits. LOHAS consumers are guided by their personal values and views of the world. The products that they consume must have a meaning and purpose. 32 LOHAS consumers are very critical and understand how they are being influenced through marketing messages. The LOHAS consumer segment prefers to buy services instead of products and considers well-being particularly important. WHOP s (wealthy, healthy, older people): A consumer segment on which high hopes have been placed in the last few years. Aged people are today in better shape, they have money to spend and they are used to travelling. WHOP consumers are particularly interested in culture and wellness tourism. DINK s (double income, no kids): Still an effective segmentation criterion. Couples with no children often have more money to spend on travel than do families, can set out for a journey more easily and often travel to faraway destinations. This group also includes sexual minorities, which have become an important customer segment in the world. Diginatives: The term refers to people born in the digital era in the 1980s-1990s, who are fluent with information technology and master social media. Diginatives were brought up in the market and media culture and live in a globalised world. They perceive the world in a different way than earlier generations. They also have different expectations of work and leisure-time and a different way of working. They consider distant work, for example, a natural alternative. Diginatives feel that work and career are means of extending one's inner self and expect to receive satisfaction from their work. 33 The above are just few examples of different types of consumer behaviour. They illustrate well how important a competitive asset the identification of different groups is. However, traditional segmentation criteria (e.g. distinguishing between families, couples and corporate groups) are still important. From the point of view of competitiveness, it is important to be able to combine new and traditional segmentation methods in order to find the customer groups that are important to one's business. 3.4 GUIDELINES OF FINLAND'S TOURISM STRATEGY 2020 The public sector's contributions and policies to promote the tourism trade are set out in Finland's tourism strategy 22. As a baseline, the strategy assumes that the Finnish tourism trade will grow, be profitable and succeed in competing for international tourist flows. Tourism is a key export trade, and a particular goal in the tourism strategy is to increase international demand for tourism. The strengths of Finnish tourism include a unique location next to Russia, attractive travel destinations/tourist areas (e.g. Helsinki, the Turku Archipelago, Finnish Lakeland, and Lapland) and the diverse services offered by tourism clusters. Weaknesses include accessibility in general, unfamiliarity and high prices. The strategy divides objectives and measures into three categories: internal development of the tourism sector, strengthening Finland s image as a tourist destination, and enhancing the basis of its general industrial policy. Key internal development objectives within the tourism sector include strengthening tourism clusters and networks, supporting the growth and development of enterprises, and improving the infrastructure of travel destinations/tourist areas. On the one hand, public sector financing is targeted at growth-oriented and networked businesses in tourism clusters. On the other, it is targeted at infrastructure improvement projects serving all tourism businesses/companies. Finland is not very well known as a tourist destination. In the neighbouring countries, government investment in promoting tourism is much higher than in Finland. Although new marketing channels facilitate marketing, they make the Finnish Tourist Board s presence in key export markets no less necessary. The strategy therefore proposes additional resources for the Finnish Tourist Board. 32 Lohas.com 33 Vesterinen, Pirkko-Liisa

25 Improving the general industrial policy base of tourism includes introducing more competitive taxation, improving accessibility e.g. by supporting the opening of new flight connections for a fixed term, and matching the summer holiday season to the European holiday system. Finland's tourism strategy also proposes that the Finnish Tourist Board should draw up a Strategic Programme for Tourism for This programme would aim to foresee and monitor development within the industry, while taking any new initiatives necessary and coordinating the preparation and implementation of measures proposed in the National Tourism Strategy. Lapland's Tourism Strategy is in line with the goals of Finland's Tourism Strategy. Lapland's emphases in the national development of tourism and in other representation of interests are discussed in more detail in the strategy section and in Section 4.6. Photo: Terhi Halonen 25

26 4. STRATEGY LAPLAND TOURISM VISION 2014 Lapland - pure LIFE FORCE near you. Lapland will be the leading destination for sustainable nature and experience tourism in Europe in There are two parts in the vision of Lapland's Tourism Strategy: the slogan and the goal. The meanings of the words making up the slogan can be explained as follows: Lapland: genuineness, safety, exoticness Purity: nature, space, gifts of nature (water, berries etc.), quality Life force: personality, experiences, activities, special luxury Near you: accessibility at all levels (transport, Internet, trade, presence) The goal part states how Lapland positions itself in relation to its competitors (the leading destination in Europe), the means through which it will stand out from them (destination for sustainable nature and experience tourism) and the schedule for reaching the goal (in 2020). 4.2 VALUES Lapland's Tourism Strategy is based on the following values: Lappish identity: The attraction of tourism in Lapland is based on genuine things: pure nature and the unique Lappish and Sámi culture, which the local people are proud of. Customer satisfaction and quality Tourism services are produced in a customer-oriented manner, taking people into consideration as individuals, where possible. Warm, friendly services finish off a high-quality tourism product. Innovativeness: Lapland is full of creativity, will and competence, which together produce innovative, experience-based tourism services, products and operating models. Security: Lapland is a safe, unpolluted, clean travel destination. Precautions have been taken to prepare for and prevent any safety threats. The internal security of the tourism trade is good (e.g. products and services). Respecting nature: Lapland's nature offers opportunities for experiences. Tourism is developed ecologically, socially and culturally in accordance with the principles of sustainable development. This ensures that future generations, too, have the chance to enjoy natural experiences in Lapland. 4.3 GOALS WHAT ARE THE GOALS OF THE STRATEGY? Economic growth. Tourism will be developed with a view to increasing year-round tourism demand. The tourism trade will grows and increase incomes and the number of year-round jobs in Lapland. Tourism will indirectly benefit several trades, thereby generating well-being throughout the region and promoting regionally balanced development. Tourism will be developed with a view to increasing considerably the number of travellers. Above all, the aim is to develop the content of tourism in order to increase the income effect per traveller. Tourism will be developed based on centres in the tourism zone. Networking between centres and villages in the tourism trade will enhance the vitality of villages, reduce migration, and develop and maintain service structures. Efficiency and quality The aim is to make the tourism trade highly profitable. Tourism products, services and the tourism infrastructure will retain their high quality and be available throughout the year. The tourism trade will be well organised, entrepreneurs will have high standards of business expertise, effective use will be made of research data, and activities will be developed as a continuous process. The evolution of new tourism innovations will be promoted. 26

27 Accessibility. Lapland will be a highly attractive international travel destination that can be reached with different, competitively priced means of transport. Marketing and sales. Lapland's tourism marketing will be effective and its content will be of high quality. It will be based on in-depth research data on customers' needs. Lapland's strong brand will be known globally and will reflect the genuine things on which Lapland's attractiveness is based: pure nature, high-quality services, rich culture and an unhurried way of life. Digital expertise, the web environment and social media will be utilised effectively in marketing and sales. Lapland's image and brand will be built persistently and systematically in cooperation with different operators, making use of the competence available in creative fields, for instance. Quality of the environment. Construction projects connected with tourism and the environment will be based on high-quality, customer-oriented planning, and the related construction work will be of high quality and reflect the Lappish identity. Special attention will be paid to pleasantness, the building of green areas and parks, landscaping and protecting the environment against erosion caused by tourism. The aim in construction is to create consistent, effective and pleasant entities. 27

28 Registered overnight stays 4.4 QUANTITATIVE GOALS FOR 2014 Registered overnight stays Trends in registered overnight stays in Lapland in Source: Statistics Finland Dome stic Inte rna tiona l Tota l Trendi (kotim.) Trendi (ulk.) Trendi (yht.) Figure 16 The long-term trend in registered overnight stays is shown in the above figure. The number of registered overnight stays continued to increase according to the goals of the previous strategy until Their growth then came to a halt, due to economic recession, but now tourism is recovering from economically hard times. According to global experiences of tourism trends, tourism is a dynamic industry that reacts to economic recovery quickly. On the other hand, the continuing unstable economic situation in the euro area makes it difficult to set any specific goals. Lapland's main market areas differ considerably in terms of their development. The growth taking place in some market areas (e.g. Russia) is believed to compensate for poor development in some other areas. Tourism is expected to grow in the long term. As a result, almost the same growth targets will be set for the coming years as earlier, though more growth will be expected from the international market. If employment trends remain moderate, purchasing power will also increase on the domestic market and tourism will develop favourably. According to the goals set, domestic overnight stays should increase by 3% and international overnight stays by 8%. As a result, the total number of overnight stays would increase by some 4,7% a year. If the goal is reached, the number of registered overnight stays in Lapland will be around 2.7 million at the end of Goals for registered overnight stays in Lapland in 2014 (domestic +3 % and international +8 %) Source: Statistics Finland Figure 17 Domestic International Total 28

29 Registered overnight stays Thousand The development goals are described in a linear manner in the tables showing the number of overnight stays, i.e. growth is expected to remain the same every year. The linear approach was chosen because a four-year interval is too short for trying to guess growth percentage fluctuations in different years. In practise, recovering from an economic downturn means that growth will continue to be slow for the next couple of years. Where possible, this has been taken into consideration when calculating the overall objective. The following statistical bias should also be taken into account when assessing the number of registered overnight stays: only some 1/3 of all overnight stays in Lapland are registered. For more information, see page 16. Overnight stays during the summer season Trends in year-round tourism are monitored based on the number of registered overnight stays between June and October. Summer travel has not developed according to the goals set but the number of overnight stays has remained unchanged for years. Reaching all the quantitative goals requires that tourism is increased throughout the year. Major resources will be assigned to this during the current strategy period. The aim is that the number of registered overnight stays during the summer season will be more than one million in 2014, which is a challenging goal. Registered overnight stays in Lapland in June-October and their goal (domestic +3 % and international +6 %) Source: Statistics Finland Total Finland International Goal: over 1 million registered overnight stays Figure 18 29

30 Air travellers Per cent Market share In 2009, Lapland's market share of the registered overnight stays of international travellers was 16.7%, and 10.4 % of those of domestic travellers. The share is expected to develop according to the trend graph, i.e. it will be 18% of all the overnight stays of international travellers at the end of the strategy period. This is a challenging goal, considering that tourist volumes are increasing considerably in Helsinki Metropolitan Area, for instance. 25,0 Lapland's goal of the market share of overnight stays in Finland in ,0 Goal 18 % 15,0 10,0 Goal 11 % 5,0 0, Source: Statistics Finland Figure 19 Domestic demand Trendi (ulk.kysyntä) International demand Trendi (kotim. kysyntä) Number of air travellers Trends in the number of international charter travellers has typically been used to account for the internationalisation of tourism. However, this does not tell the whole truth anymore, as a very large number of international travellers arrive in Lapland on scheduled flights. The number of individual travellers of this kind is expected to increase in the future. Number of air travellers in Lapland and goal (International +10 % and domestic +5 %) Source: Finavia Figure 20 International Domestic Total 30

31 Rail travellers The falling demand on the British market, the ash cloud in Iceland, rise in costs, strikes and weather-related problems have put air traffic to the test in the last few years. Lapland has evidently fallen short of the number it has set for inbound charter travellers. Growth may continue to be slow for the next few years. Therefore, a moderate growth target will be set for air travellers. The table shows the number of domestic and international air travellers. The figures include scheduled, charter and taxi transport. Finavia's statistics includes both arrivals and departures. The number of international air travellers is expected to grow by approx. 10% and that of domestic ones by 5% a year. This means that the good level recorded in 2007 would be reached in airborne travel by the end of the strategy period. Number of rail travellers Trends in the number of rail travellers in Lapland and goal ( + 4% /year) More than rail travellers in Source: VR Group Figure The number of rail travellers has developed in accordance with the goal set in the previous strategy. The number exceeded the goal in 2008, only to be followed by a downward trend in the same year. However, all in all the year 2009 was not poor for rail tourism despite the fact that there were a lot of train delays due to weather conditions and other problems. The popularity of rail travel is also expected to increase in the coming years. Therefore, it is realistic to set a +4% annual growth goal, which was also used in the previous strategy. With this growth rate, more than rail travellers would visit Lapland in Rail travel may even grow at a faster rate. Currently some 80% of all domestic travellers visiting Lapland travel by car. If the trend of sustainable development continues, more and more travellers may choose the train instead. The market share of domestic travellers, too, is expected to increase. 31

32 EUR million Ski lift ticket sales The goal set for ski lift ticket sales in Lapland during the previous strategy period was already exceeded during the winter season According to the statistics of the Finnish Ski Resorts Association, the value of ticket sales during the winter season was EUR 18.4 million. The growth goal for ski lift ticket sales is +6% a year. This would translate into sales amounting to some EUR 21 million in The goal is based on the steady popularity of downhill skiing and snowboarding, the new slope investments made in Lapland and the favourable snow conditions of the last few years, which has increased the popularity of snow sports. In addition, international travellers are expected to use the services of downhill skiing resorts more actively. Goal for ski lift ticket sales in Lapland (+6 % /year) 25 Goal 21 million 20 18, /12 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 Source: Finnish Ski Resorts Association Figure 22 Hotel occupancy rate The hotel occupancy rate in Lapland is far from that of the whole country and has not developed as expected in the last few years. This may be partly due to an increase in accommodation capacity in , at which point several new investment projects were completed in Lapland. Another reason is that winter is by far the most lively tourism season in Lapland. A moderate goal of 50% is set for hotel occupancy rate for This means a growth rate of some 4% per year. Hotel capacity may not necessarily increase as quickly as cottage accommodation capacity in the near future, however, as major investments were made only recently. Reaching the goal nevertheless requires efforts to develop year-round tourism activity. 32

33 EUR Per cent % Goal for hotel occupancy rate in Lapland (+ 4 % /year) ,2 41,3 Goal 50 % Source: Statistics Finland Figure 23 Finland Lapland Average hotel rate The average hotel rate in Lapland was close to the national average in This is partly attributable to new, fresh capacity, for which a higher rate can be charged. However, the goal set for the average rate during the previous strategy period has not been reached. The aim is to increase the average rate by some three per cent a year, which means that the rate would be over 90 euro in Goal for average hotel rate in Lapland (+ 3 % /year) Goal Source: Statistics Finland Figure 24 Finland Lapland 33

34 EUR Value of accommodation sales The average rate in all accommodation services in Lapland in 2009 was 39 euro, which is very small. The figure shows that accommodation is sold at extremely low rates at some point during the year, due to strong seasonal fluctuations. In the same year, the value of accommodation sales in Lapland (registered overnight stays x the average rate of all overnight stays) was EUR 89.7 million. According to the goal set, there should be registered overnight stays in If it is estimated that the average rate of all accommodation services increases by some 2% a year during the same period, the value of accommodation sales would be EUR 115 million at the end of the strategy period. In practise, however, it is unlikely that both the parameters (registered overnight stays and the average rate) will develop optimally in accordance with the aims set. Therefore, a more realistic estimate for 2014 would be between EUR million. Value and goal for accommodation sales in Lapland (goal for registered overnight stays x average rate) 120. Goal 115 million , Source: 2001 Statistics Finland Figure 25 Tourism income and employment in tourism services According to calculations by the Regional Council of Lapland in 2010, annual tourism income in Lapland was EUR 595 million and employment in tourism services amounted to about 5000 man-years. 34 The calculations do not include the number of hired labour, which is large in the tourism industry. The long-term goal is to increase tourism income in Lapland by a three-fold and employment by a two-fold by Reaching this goal requires a major increase in traveller volumes and turning summer into a lively season. The following table shows what the trend would look like if the goal set for registered overnight stays during the strategy period was reached. Apart from other tables in this paper, the graph here is not linear, but the calculations taken into account that it will take several years to recover from the recession and that growth will be slower at that point. With the method, it was possible to draw a more realistic long-term trend graph. According to the trend, there will be some 3.5 million registered overnight stays in Lapland in 2025, in which case tourism income and employment in tourism would probably be very close to the goals set. It should be noted, however, that the figure is very optimistic, because it does not take economic fluctuations into consideration. On the average, there are one or two poor economic trends during one decade. Besides economy, there are many other factors that can affect tourism. The figure is important in that it shows how tourism in Lapland could develop in the most favourable scenario. 34 Tourism Facts in Lapland, Statistical Review

35 Registered overnight stays Trends in overnight stays in Lapland to Domestic Total Lin. (International) Figure 26, Source: Statistics Finland, Regional Council of Lapland International Lin. (Domestic) Lin. (Total)

36 4.5 STRATEGIC GOALS ACCORDING TO SUB-AREA: WHAT ARE THE MEANS FOR REACHING THE GOALS? Tourist centres and tourism zones The tourist centre based development strategy, which was adopted in Lapland at the beginning of the millennium, has proved successful and Lapland s tourism has developed strongly in the past decade. Lapland's most important tourist areas, i.e. tourist centres and their surrounding tourism zones, are shown in the target picture of Lapland's regional plan (see map on page 12). The various tourism zones are defined using criteria such as accessibility particularly in terms of air traffic and functional cooperation between the areas in developing tourism. The long-term tourism development objective in the regional plan is to increase tourism income in Lapland from the present level to EUR 1.5 billion and to double employment in tourism services to man-years by The drivers of Lapland's economy are the high-grade natural resource industry and a global, tourism-driven experience cluster. 1 In developing tourism, public support is mainly allocated to tourism zones and regional centres, which have the best preconditions for increasing the volume of international tourism. Tourism in Lapland will grow particularly if international tourism is promoted, as the domestic market is very limited. Internationalisation and the development of tourism zones will also offer opportunities for developing tourism in other parts of Lapland in the future. Lapland's previous tourism strategy divided tourist areas into strong, intermediate, developing and other tourist areas. The regional division is still an important criterion for directing public aid, as it takes into consideration the life span and development stage of the various tourist areas. According to the previous strategy, public aid should be allocated particularly to promoting the growth of intermediate and developing tourist areas and taking their development to the next level. This emphasis will also continue during the current strategy period. However, it should be noted that all tourist areas (including strong centres) must have a chance to develop their operation and move on to the next level of development. Tourist areas are bound to enter a stage where demand begins to fall, at which point they must be able to reform and develop their products in order to maintain their attractiveness as a travel destination. This means that the regional division is not used categorically to rule any area out of development but in order to provide a framework and perspective for assessing the development of tourist areas. Tourism will be developed in Lapland by promoting the profiling, growth and networking of tourist areas, strengthening experience and product development expertise, and investing in quality and safety. Development financing is available to spearhead projects in tourist centres, projects enhancing overall attraction and increasing year-round tourism activity, promoting networking and cooperation (especially the use of ICT), and removing development obstacles. When deciding on public support, attention is paid among other things to entrepreneurs' commitment to developing the area, the presence of a regional organisation, and regional development plans and strategies. Promoting entrepreneurship and the operational preconditions of companies will continue to be important goals during the current strategy period. The number of SMEs is very high in the tourism industry. Attention will be paid during the strategy period for developing SMEs and subcontractor networks, and cooperation, networking and business partnerships between tourism leader businesses and SMEs. The profilation of tourist centres will continue to be supported. Creating distinct profiles for tourist centres will play an important role particularly in maintaining interest on the domestic market. Keeping up domestic demand is very important to the tourism trade in Lapland, as domestic demand will balance out any changes caused by global economic fluctuations on the international market, which was shown during the economic recession. 36

37 Goals and measures: Public financing will be targeted at tourism zones in particular, also taking account of regional division and the development stages of tourist centres. Public financing will be used in particular to promote the profiling, growth and networking of tourist areas, enhance experience and product development expertise, and improve the quality and security of tourism. Entrepreneurship and the operational preconditions of tourism businesses will be promoted Markets and customers The growth potential of tourism in Lapland is based on foreign customers. The population base available in Finland does not allow for any significant increase in domestic travel. Currently the overnight stays of international travellers make up approx. 35% of all registered overnight stays. The aim is to increase the share of international overnight stays to 50% in the near future. In increasing the numbers of travellers, controlled growth will be sought by raising not only volumes but also the traveller-specific income effect. This will be done through product development by shifting the focus from service production to personalised experiences and the transformation economy. Seeking growth from overseas does not mean forgetting the domestic market. Domestic travellers will continue to be an important tourism segment in Lapland, as domestic demand may balance out possible economic fluctuations in international demand. In addition, domestic travellers are often destination-loyal customers who frequently travel in Northern Finland and also pass this tradition on to future generations. An important target group consists of private people who have a holiday apartment or cottage in Lapland. The use of second homes of this kind will increase in the future, thanks to better opportunities for telework and the retirement of population. In addition, a lot of private cottage accommodation is hired through rental service. The main market areas for Lapland's tourism are currently Great Britain, Germany, France, Spain, the Netherlands and Russia. The Russian market in particular has developed favourably in recent times, offering huge growth opportunities. One should remember, though, that success on the Russian market will call for more investments. In future, demand will be maintained in these main market areas through efficient, targeted marketing in collaboration with tour operators, transport companies and other partners, and by influencing the end consumers. One should avoid becoming too independent on a single target market. Therefore, it is also necessary to launch new initiatives and actively invest in new market areas. Lapland aims to get its share of the growing Asian market, for instance. However, the marketing efforts directed at new areas should be considered carefully and specific result goals should be set for them. To save resources, marketing partnerships should also be sought in other sectors. Travellers visiting Lapland can be divided into families, groups of friends, cottage-owners, and business or incentive travellers. Another group is independent travellers, most of them young adults. The number of independent travellers is increasing constantly, as nowadays people are used to planning and preparing their journeys through the Internet. The meeting, congress and incentive sector (MICE) is a very important, growing segment for Lapland, in which it competes against North Africa, for example, whose currently unstable situation has increased the number of business and incentive travellers in Lapland. It is likely that tourism marketing in Lapland will still be based on the above groups, geographical target area marketing and demographic segmentation criteria in the near future. Although this is not the most efficient segmentation method, it is the only available alternative in a situation where not enough research data are yet available for building a segmentation based on psychographic factors. The aim should be to increase the amount of market and customer information in the future so that different customer lifestyles, forms of consumer behaviour and values can be used as segmentation criteria. As a result, marketing will be more efficient and better targeted than if relying on demographic factors. It is particularly important in Internet marketing that measures are targeted as accurately as possible. More detailed knowledge of customers' lifestyles will also provide a better basis for product development work. Offering customised services is no longer a sufficient competitive asset, but products and services must offer a chance to get experiences. This calls for even more exhaustive information on customers and their consumption behaviour. 37

38 Goals and measures: Growth will be sought on the international markets. Marketing efforts will mainly be focused on the existing target areas, while launching carefully considered initiatives to enter other new markets in Europe and in Asia (e.g. Japan, China, India). Domestic demand will be kept keen. The number of travellers will be increased in a controlled manner. The aim is to raise the travellerspecific income effect by increasing experiences, providing more complete products (Christmas and winter products) and increasing volumes (summer products). More exhaustive customer research will be carried out. The aim is to move over from country-specific segmentation to value-based segmentation. More research data are needed on customers, particularly as regards psychographic factors, lifestyles and consumption behaviour. Photo: Laplandfinland.com 38

39 4.5.3 Marketing The changes that have taken place in travellers' purchase behaviour and national tourism marketing, and the need to improve the efficiency of marketing, give rise to pressures to change regional tourism marketing. Tourism marketing activities in Lapland were developed in 2010 through negotiations between the tourism industry, financiers, the Finnish Tourist Board and other operators engaged in the tourism industry. In autumn 2009, the Regional Council of Lapland commissioned a benchmarking survey 35 from a consultant, utilising the data and proposals of the survey as the basis of the marketing process. Based on the negotiations, joint marketing activities and the joint marketing activity model to be implemented in Lapland were reassessed and a new, more efficient structure was created for the operation. The operational budget of the Finnish Tourist Board (MEK) was EUR 9.7 million in 2010, as compared with EUR 16 million just two years earlier. Corresponding marketing inputs in Norway in 2010 were EUR 29.6 million and in Sweden EUR 14.3 million. Marketing inputs have increased in the neighbouring countries in the last few years, whereas the trend in Finland is quite the opposite. In addition, the Finnish Tourist Board has had to close down some of its overseas offices and also reduce the number of representatives considerably in the last few years. It has focused on developing the Visit Finland portal and the country brand. The Finnish Tourist Board's partial withdrawal from the market areas has impaired Finland's visibility. The country portal and work on Finland's country brand are still at the initial stage and have not yet fully met the expectations placed on them. These changes have led to a situation where Lapland, as a tourist area, will also take more responsibility for national tourism marketing activities and Finland's visibility on the markets in the future. Lapland will enter closer cooperation with the Finnish Tourist Board and aims to become a pilot region for integrating the Finnish Tourist Board's country brand work and four C communications efficiently with regional tourism marketing activities. In addition, it will actively represent its interests in view of developing national tourism marketing. Sufficient resources must be secured for the Finnish Tourist Board in the future, its policies should be developed further, and new networks with a more cost-effective structure must be established in the market areas. Involving the entire export industry more effectively in building the country brand will offer synergy benefits and promote Finland's international visibility. Finavia, too, is an important partner in Lapland's tourism marketing in view of developing accessibility. Finavia's Lapland Airports concept provides a good foundation for cooperation. The role of Finavia is discussed in more detail in Section Joint regional marketing efforts will be needed in Lapland in future, too, but the operating model has to be rendered more efficient and permanent. Regional tourism marketing must be persistent and systematic, and marketing communications efficient and clearly formulated. In practice, this means the implementation of a long-term marketing plan drawn up together with the various operators. It has also been considered necessary to reform the Lapland brand and develop its content. A new priority is included in Lapland's regional programme , entitled 'Competitiveness through the Lapland Brand - Power to Communications'. According to the programme, the Lapland brand should be developed in order to ensure that the region is considered attractive not only as a tourist destination, but also as a place of residence and work and an investment target area. To reach this goal, extensive brand development work will be launched in Lapland, led by the Regional Council of Lapland. Representatives from a variety of sectors and operators from science, art and culture will be invited to contribute to the work. Developing the Lapland brand is one sub-area in the new tourism marketing operating model. As the content of tourism marketing is highly specialised, marketing efforts will be organised as a separate entity. The purpose of developing the Lapland brand is to provide new ideas for tourism marketing, specify communications and also commit other sectors to building the brand. Public support and business financing is needed for tourism marketing The operating model for tourism marketing was developed together with the tourism trade and other operators in spring The purpose of the new model is to open up opportunities for developing business and an earnings logic, which in the long term will allow gathering marketing resources for Lapland and remove excessive dependence on projects. Methods must be developed for this purpose for collecting 35 Tourism marketing benchmarking survey

40 resources as close to the customer interface as possible. This will be the only sustainable solution in the future in order to secure the sufficiency of marketing resources. The precondition for implementing the operating model successfully is that the tourism trade takes responsibility for product marketing, product coordination and business development. It is still justifiable to carry out image marketing through public support, but in order to be effective, it must be linked with product marketing. The tourism trade must provide resources for product marketing in order to build business on a solid foundation. The new Lapland-level operating model is shown in the figure below. The model consists of two parts: cooperation between the Lapland - North of Finland image marketing project and an operator that could coordinate product marketing in the future. The new operating model will clarify marketing communications and also facilitate cooperation with tour operators and other partners. Tourism marketing action model Regional Council of Lapland Organisation coordinating product marketing Image marketing project Budget EUR 1,93 million/year ERDF + state 70 %, Aid EUR Co-financing: Finnish Tourist Board EUR Lapland + Koillismaa EUR MARY Product campaings, other activities Company financing + possible other financing Cooperation with Finavia Cooperation with Finnish Tourist Board Tourism businesses Tourist centres, regional organisations Figure 27, Source: Regional Council of Lapland The operating model for marketing will for the first time include Koillismaa as a new tourist area. So far there has been campaign-level cooperation with the Ruka-Kuusamo area, for example. Pursuing broader cooperation in image marketing will benefit Lapland, as it will save resources, increase the efficiency and volume of marketing and make it easier to collaborate with tour operators and other international partners. Product and image marketing are not the same thing. Image marketing involves general image-based marketing activities, in which the aim is to first make international customers interested in the destination area, after which they can choose which product in the area they want to buy. Images are marketed to international customers through a project whose marketing activities are based on the message 'Lapland - North of Finland'. The budget of the three-year supra-regional Lapland - North of Finland project, which is implemented by the Regional Council of Lapland, is EUR 1.93 million a year. Seventy per cent of the project finance consists of government and ERDF support, which is obtained through the Regional Council of Lapland and the Council of Oulu Region. The Finnish Tourist Board is closely engaged in the project as a financier of the selffinancing share. The rest is contributed by the municipalities of Lapland and Koillismaa. The marketing group (MARY) has a more prominent role and more responsibility in the new operating model. The structure and financing of the activities are described in Figure X, though in practise image marketing activities and product marketing are organised as a single package. Image marketing cannot be performed entirely without linking it to products, as otherwise it will not be efficient. The marketing group will work together with a marketing company, which was selected to carry out practical work after it had won competitive tendering. The project manager and the marketing group will together prepare and commit 40

41 themselves to a marketing plan. The marketing group also decides on the implementation of campaigns and agree on practical cooperation with the Finnish Tourist Board and tour operators, for instance. It also monitors the effectiveness of the campaigns. The Lapland - North of Finland project pursues cooperation with the Finnish Tourist Board by coordinating Lapland-related campaigns and measures in accordance with the cooperation agreement. The aim is to carry out image and product marketing activities for the selected markets and target groups based on the Finnish Tourist Board's country brand (four Cs) by implementing the long-term marketing plan. Closer cooperation offers the following benefits to the Finnish Tourist Board: All Lapland-related measures are available in the same address > the Finnish Tourist Board has more resources available. Consistent, efficient communications (four Cs) and building the country brand from the level of tourism regions onwards. More resources to the market areas. New content and views from Lapland to marketing. Cooperation from Lapland's point of view. Increases resources. Secures the visibility of the cooperation area in the main market areas. Increases systematicness and the flow of information, thereby making activities more efficient. Event marketing Event marketing has recently come up in tourism marketing. It can be understood in two ways: making use of existing, internationally visible events in tourism marketing (e.g. the Alpine Ski World Cup) and marketing tourism products and the attractiveness of the region in events arranged in the target areas. Extremely broad media coverage can be reached particularly through major international events. It would be impossible to have corresponding visibility through the resources available to tourism marketing. Events are thus a cost-effective, useful venue for marketing tourism services and also play an important role in image building. International sports events arranged in Lapland should be utilised actively in tourism marketing. In addition, there are cultural events in Lapland that already enjoy an international status or have the potential to obtain such a status in the future. These events, too, can offer opportunities for efficient marketing and image communications. Utilising film productions Film, TV and commercial productions have increased in Lapland considerably in the last few years, thanks to the work done by the Finnish Lapland Film Commission. Different types of productions are very beneficial for tourism. Their benefits can be divided into three categories: Actual production, which often brings to the area a large production team who will use its services. Production-related media visibility and the images that this generates of the area. Refining production elements into new commercial tourism products. The synergy benefits between tourism and the film industry should be exploited more extensively in image marketing. The whole made up of tourism marketing activities will enter closer cooperation with the Finnish Lapland Film Commission in future. In practise, this cooperation can include the planning of tourism marketing campaigns, which would be arranged in connection with the first nights of films shot in Lapland and supporting the Lapland brand. Making more effective use of film productions in tourism requires development measures in the following sub-areas, for example: IPR management: What intellectual property rights should be managed and how should this be done in order to turn content into a commercial tourism product? Criteria for evaluating the cooperation potential of productions (the Green Lighting process): What types of production should be focused on and when? Film Friendly sparring of tourism businesses. 41

42 Financial instruments for film productions - improving the attractiveness of Lapland. The most important measures of those listed above is the development of financial instruments and creating an incentive system for the audiovisual and gaming industry. Currently Finland is not in the position to win the competition for international film productions, because it lacks an incentive system, which the key competitors are already using. The system refunds production costs based on the amount of money spent in the country where the film is shot. However, the payment of refunds requires that carefully defined criteria are met. A model is currently being investigated in Finland for use as an incentive system in the audiovisual and gaming industry in order to increase major important international audiovisual and gaming production investments. The incentive system will also be used to create much better, internationally competitive operational preconditions for other types of creative industry and the service industry that will benefit from the audiovisual and gaming industry. Goals and measures: The Lapland brand will be developed through broader cooperation, which will unite all tourism marketing activities, several sectors, and operators engaged in culture, science, art and sports. A new operating model and organisation(s) will be set up for regional tourism marketing in Lapland. The model will allow closer marketing cooperation with Koillismaa. Lapland and the Finnish Tourist Board will together launch new cooperation in order to reach better synergy in national and regional marketing activities and to carry out more effective country brand work and four C communications. Marketing cooperation will be implemented more closely with Finavia (the Lapland Airports concept) within the framework of the image marketing project in order to develop accessibility. An earnings logic and operating models must be developed in Lapland that will allow the harnessing of marketing resources as close to the customer interface as possible. Lapland's high-visibility international events will be utilised in tourism marketing. Lapland represents interests to secure sufficient resources for national tourism marketing. Cooperation will be increased between regional tourism marketing and other operators (e.g. the Lapland Centre of Expertise for the Experience Industry, the Finnish Lapland Film Commission, the Multidimensional Tourism Institute). Measures will be taken to build a national incentive system for developing the audiovisual and gaming industry, based on a model approved by the European Union. Tourism marketing will also be developed jointly with the neighbouring countries and through Barents Region cooperation Internet marketing, e-commerce and e-business Lapland's tourism trade still makes little use of the Internet, although a lot of positive development has been seen in this in recent years. Lapland's tourism services and products are still poorly represented in international electronic distribution channels, they can seldom be booked or purchased over the Internet and not enough resources have been set aside for Internet marketing. When talking about the opportunities of the Internet, one should first define what is meant with the various terms. E-commerce includes the presentation, marketing, sale, payment and distribution of products and services to retailers or end customers through information networks. E-business, in turn, is a broader concept, referring to measures to disseminate information, produce value-added services and exchange goods through information networks. The aim of e-business is to gain competitive leverage with the help of information networks. 36 Internet marketing (or more specifically digital marketing communications) involves marketing over the Internet. It includes a host of measures from search engine optimisation to the use of social media. Strengthening the competitiveness of the tourism trade in Lapland calls for investments in developing e- commerce and the e-business expertise of companies. In addition, developing e-services should be closely 36 A preliminary survey of the overall coordination project for developing e-business expertise in Lapland. 42

43 linked with the earnings logic. The logic of the tourism business has changed with the development of e- marketing and distribution channels. In addition to BtoB marketing, BtoC marketing today enjoys an important, prominent role (social media). Interaction and trading increasingly take place directly with customers over the Internet. Channels and places have been replaced by electronic platforms and tools. Responding to changes and keeping up with development challenges forces companies and tourist areas to change and revamp their business concepts, business ideas, operating models and strategies. One should take the next step from technology-centred development and invest more in Internet content and in improving the distributability of products. Regional tourism organisations have not yet found their role in e-business. According to experts, when companies develop their e-business, the tourist area will benefit more than it would from the building of a regional electronic market place (portal), for instance. Portals will nevertheless play a specific role in the future, as some customers want to have information and make bookings through a single location. Portals also play a role in the image marketing of the area. If e-business is developed at the level of companies, regional organisations could assume the role of taking care of the area's visibility in different types of social media and in map and image services. In addition, creating and coordinating an affiliate network would fit superbly in the regional organisation's role. International electronic travel booking and distribution channels include Amadeus, Expedia and Travellocity. Lapland currently offers very little through these systems. In addition, the search word 'Lapland' only gives very few results. Entering major distribution channels typically requires a fairly large business volume, and the tourism businesses in Lapland are often too small in order to access international systems directly. However, nowadays there are new operators on the market who also welcome small companies. A survey should be carried out in Lapland in order to find out what the most important distribution channels are and what channels Lapland should seek to enter in the first place. More information is also needed of the costs and benefits of entering booking systems. Attention should also be paid to the quality of e-commerce. Quality has to do with different types of electronic production and resource planning systems that companies will use to manage their internal processes in the future. Resource planning systems should serve business-to-business commerce all the way to the customer as effectively as possible. The cross-selling opportunities and after-sales marketing of businesses should be developed. The everyday work processes currently in use are too complex. The adoption of new systems would free companies' resources to customer acquisition and additional sales. It must be possible to measure and verify the quality of e-services. Methods have already been developed for this, including web footprint measurements. To outline the role of e-commerce, one should also investigate how much of Lapland s tourism income comes from e-commerce. Internet marketing is a cost-effective way of reaching travellers. The visibility of products and services in the Internet can be enhanced considerably through simple means. Among other things, the success of Internet marketing lies in the fact that it allows making products and services stand out, targeting the message to carefully chosen target groups, and committing customers to the products through social media. Internet marketing education should be increased and the competence of tourism entrepreneurs and marketing companies should be improved. Improving the efficiency of Internet marketing would require different types of surveys and research. The Internet behaviour of new, growing markets and target groups should be investigated. Russians, for example, are a growing customer group in Lapland's tourism and also the most active users of social media. In addition, an action plan is needed about how Internet marketing should be implemented for the various target groups. The aim should be to take over the electronic market in those target areas where it is still possible. Lapland's tourism portal will be maintained through project financing until the end of The portal's product and business services will be developed and its business opportunities explored during the project period. The web store is not the only business opportunity, as an earnings logic can also be built around affiliate marketing models or different types of complete visibility packages. The travel portal pursues cooperation with the regional portal 43

44 Goals and measures: Measures will be taken to recognise best practises: implementing a survey of electronic distribution channels and business models at the national and international level. E-commerce will be developed and more effective use made of electronic distribution channels (portals, e-commerce). The competence of entrepreneurs and marketing companies will be developed through education. Investments will be made in more efficient Internet marketing and the use of social media. The Internet behaviour of customers in the main market areas will be outlined and an Internet marketing action plan prepared. The use of electronic resource planning systems in companies will be promoted. The quality of electronic services will be monitored and methods developed. The share of e-commerce of Lapland's tourism income will be investigated and its trends monitored. Business linked with the laplandfinland portal will be developed in order to increase regional marketing resources Products, services and year-round tourism activity Developing strong product themes Theme-based travel is expected to increase. The Finnish Tourist Board coordinates the theme-based development of tourism at the national level. The main product themes are winter and Christmas, summer activities, Finnish well-being and cultural tourism. Product development programmes have been created for each theme. The aim is to increase customer-orientation, promote networking between companies and ensure that theme-based products are of sufficiently high quality and suitable for exports. 41 Also for Lapland nature, culture and well-being are product themes that address the needs of modern travellers. The themes rely on the natural strengths and attraction factors of Lapland's tourism and allow the development of year-round tourism products. In addition, it is well known that winter activities and Christmas are strong product themes in Lapland. However, they should be developed, refined and reformed further. As for products, Lapland's existing strengths are meeting, congress and incentive tourism (MICE) and event tourism (e.g. world cups). Measures should also be taken to maintain the attractiveness of these products through continuous, innovative development work. Improving competitiveness in the MICE sector, for instance, will require investing in the better coordination and more effective marketing of meeting and congress services in the future. Different ways of producing and organising tourism-related product development and marketing were assessed in a tourism marketing benchmarking survey. Three tourist areas were used as an example in the survey: Bayern, Northern Ireland and North Lake Tahoe. From Lapland's point of view, the most interesting model was the theme concept model implemented in Bayern, in which tourism businesses pay for their membership in a specific, jointly marketed theme concept. Theme concepts include the Kinderland (children's attractions and experiences), WellVital (wellness products) and WinterErlebnis (winter experiences, downhill skiing). The model receives a half of its financing from the public sector and another half from the involved companies in the form of membership fees and campaign participation fees. 35 The benefits of the theme concept model: a distinct financing model, efficient marketing and a good development and quality control tool. There are currently slightly over one thousand tourism businesses in Lapland. The number is far too small in order for entire regional tourism marketing to be based on a theme concept model only. Instead, the model could be useful in developing product themes and drawing up quality criteria. The model could be tested with some of the most important themes (e.g. Christmas), in which case it would first complement other forms of marketing. The implementation of the theme concept model requires that companies remain committed to it for several years. Lapland's asset in tourism product development is its strong expertise in experiences. It has been possible to improve the quality and attractiveness of products and services by paying attention to the experiences that 44

45 can be made available through them. The importance of the experience business to Finland's competitiveness is constantly increasing. Currently Finnish households spend about one fourth of their incomes in experiences. 37 The experience aspect should also be used as the guideline in product development in the future. Future customers will expect individualised tourism products and look for experiences - even transformational ones. Developing products based on these requirements will increase their value and make them more highly refined, which means that a higher price can then be charged. More highly refined products should be introduced particularly in Lapland's strong product themes, such as the Christmas and winter product. Another way of adding experiences to products is to make more effective use of Lappish handicraft, design and the food and natural product industry. The restaurant business should increase the use of local elements in other products (e.g. berries, herbs, mushroom and dairy products) in addition to reindeer meat and fish products. Tourism services related to well-being, in turn, could make more extensive use of natural products and care products based on folk traditions. The use of high-quality local raw materials will refine tourism products and reflect culture in a way that the modern traveller appreciates. Summer's driver product: National parks and tourist centres together Promoting year-round tourism activity is one of the most important strategic development priorities. This can be ensured on a permanent basis only if Lapland's summer product can be marketed successfully to international travellers and the number of travellers in the summer season can be increased considerably. To achieve this, an internationally attractive summer travel product, i.e. a driver product, is needed. A sufficiently attractive product should be developed in collaboration with tour operators, and launched to the market first with the help of charter flights. The aim should be to launch a trend that already proved successful when developing the Christmas tourism product. To develop summer travel, Lapland must first seek to attract international tourist masses, which requires a genuinely attractive, highly commercialised, high-quality tourism product that is in line with modern consumer behaviour trends. Use should be made in this of the themes of sustainable development and well-being in particular. Work on developing a driver product for summer travel should set out from the needs of international travellers. The range of summer travel products available in Lapland is currently targeted to domestic travellers in particular. The nature element is sold mainly as a resource, which suits well to independent domestic travellers who are used to hiking in nature. Although tourist centres offer a broader range of services, their summer travel activities are mainly limited to different types of routes to travellers for independent hiking. International travellers are as keen to experience nature as domestic travellers are. However, their needs are highly different, as they usually live in an urban environment and are not accustomed to nature. They may consider nature a strange, even scaring element even if the routes were well signposted. Therefore, international travellers need advice, guided activities and complete products. A successful driver product can only be built on factors that are already known internationally (such as Santa Claus). National parks are an internationally known concept. They are nature conservation areas that also serve the needs of scientific research, teaching, general knowledge of nature and recreation. People can move freely in the parks if they follow regulations, and have access to well maintained routes and infrastructure. There are eight national parks (7 365 km2) 38 in Lapland, which are mainly used by domestic travellers, but only by few international travellers per year. Yet in terms of their infrastructure, they could withstand considerably higher visitor numbers. In 2008, the estimated income effect of Lapland's national parks in the local economy was EUR 41.7 million and their employment effect 547 man-years. Some travellers visited Lapland's eight national parks in This shows that national parks offer major tourism potential, addressing today's most important consumer trends in tourism, such as environmental awareness, sustainable development, well-being and downshifting. The problem in tourist centres is poor demand during the summer season. At that point a lot of accommodation capacity is vacant, so many entrepreneurs have to close down for summer. Although tourist centres have greatly developed the range of services they offer in summer in the last few years, domestic demand is limited and not sufficient for filling tourist centres to the capacity in summer. 37 Action Plan 2011 of the Lapland Centre of Expertise for the Experience Industry. 38 Lapland's Natura Guide, Local economic effects of spending by visitors to national parks and hiking areas. 45

46 The problem could be solved by uniting the range of services offered by national parks and tourist centres and commercialising them into a product that meets the needs of international travellers. Many of the tourist centres in Lapland are located beside a national park (see map). Lapland's tourist centres follow the principles of sustainable tourism in developing their tourism activities and are compactly built, which protects the surroundings from any harmful effects that tourism may have. Making the diverse range of services offered by tourist centres as part of the 'national park adventure' will not exclude the ecological values of the product, on the basis of which it should be easy to market it. TOURISM ZONES AND NATIONAL PARKS Figure 28, Source: Regional Council of Lapland Lapland's lakes and rivers offer good opportunities for developing summer travel. Only little of their tourism potential has been used so far. The key product in fishing tourism is currently salmon fishing, which is offered on the rivers Tenojoki, Simojoki and Tornio-Muonionjoki. The basic precondition for developing fishing tourism is that one is able to guarantee catch. Therefore, the rise of salmon to their spawning rivers must be ensured. Their rise to the rivers Kemijoki and Ounasjoki could also be ensured by means of fish ladder. This would also allow developing fishing tourism, which is based on luring migratory fish, on Lapland's largest river. However, little has been done so far to commercialise fishing. The range of services offered is scarce and almost solely directed to domestic travellers. Utilising the opportunities of fishing tourism requires developing cooperation between tourism entrepreneurs, launching fishing product development efforts and marketing them to international customers. 46

47 Opportunities and challenges of the Christmas and winter product Lapland's strength lies in its Christmas and winter product. The winter product comprises different types of activities, such as cross-country skiing, downhill skiing, snowboarding, snowmobile rides, reindeer and husky safaris etc. The Christmas product, in turn, mainly involves meeting the Santa in different places or occasions, and Christmas traditions and atmosphere. Santa Claus is also a Finnish cultural product. The challenge with strong products is how they can be reformed successfully. Christmas and winter products should be developed in such a way that travellers want to experience them over and over again, not just once in their lifetime. Strong product themes can be reformed by emphasising experiences and introducing more refined products. Skiing and slope activities play a prominent role in skiing centres and should also be developed in future. Tourism related to cold and winter technology is also important. The industry offers new opportunities for developing winter products. Finnish Lapland has strengthened its role as the home of Santa Claus in the last few years. This is the result of persistent development work that has popularised Santa Claus in a variety of international contexts. Rovaniemi, for instance, is the registered Official Hometown of Santa Claus. However, there are still competitors: a new Christmas theme park was opened in China in autumn Christmas theme parks and attractions should not be seen as competitors only, as they can play an important role in spreading 'real' Santa knowledge. One should seek to enter into cooperation with international operators and make sure that they convey a message of real Santa and his home district - Finnish Lapland. Cross-country skiing and downhill skiing are still the most popular activities despite the fact that tourist centres have been diversifying and expanding their range of products and services all the time. The popularity of cross-country skiing in particular has increased enormously during the past couple of years. Snowy winters show in an increase in the number of cross-country enthusiasts particularly in Southern Finland, though cross-country skiing does not yet threaten the popularity of downhill skiing and snowboarding. Finland is well positioned as a downhill skiing destination on international standards. There were some foreign downhill skiers during the season 09/ The visibility of the winter product can be enhanced by developing cooperation and marketing between different events. In the future, the winter season could be opened in the main market areas under the theme 'Lapland Winter Opening'. Nature-based tourism is vulnerable to climate changes, and climate warming will hamper Christmas and winter tourism in particular. The Christmas product is highly dependent on snow, particularly at the beginning of the season. The lack of snow may occasionally also hamper winter activities, such as snowmobiling. The amount of snow on downhill skiing slopes can be controlled well by making artificial snow if the temperature drops below zero at the right time. It has been predicted that Lapland will remain as a fairly snow-sure area, so the outlook for winter tourism looks good. A climate strategy is currently being prepared in Lapland in order to assess the general and sector-specific impacts of climate change on Lapland. The tourism trade must prepare for climate change through product development and marketing communications measures. The range of tourism services offered must be adapted to different types of weather conditions. This can be done by drawing up back-up plans and refining communications strategies, where necessary. On the other hand, Lapland is in the position to turn climate change into an asset by profiling into a sustainable tourism development area. Tourist centres are already interested in measuring and controlling their carbon footprint. This may prove an important competitive asset in the future. 40 Finland's ski resorts, parameters

48 Cultural and wellness products Photo: Laplandfinland.com Cultural and wellness themes have emerged as promising opportunities in the tourism industry in the last few years. Lapland has a lot of potential and content to address both the themes, of which little use has been made in tourism so far. Cultural tourism is mainly perceived through different types of events. There are many tourism products that are connected with well-being in one way or another, but they are not yet available under the wellness theme. The same problems have also been recognised at the national level. The Finnish Tourist Board has been engaged in theme-based product development work in the last few years, drawing up theme-specific development strategies 41, which among other things define theme content criteria and development goals. The strategies provide a good foundation for developing product themes in Lapland, too. Quality high culture is available in Lapland (events, music, theatre, art institutions and attractions), which should also be highlighted better in tourism services. In addition, cultural services should be developed in order to make them fit in better with the operating models used in tourism. Reaching these goals will call for increasing cooperation and interaction between culture producers, operators in creative fields and the tourism trade. Travellers are also interested in Lappish traditions and the way in which the present day Lapps live. It would be possible to introduce visitors to the Lappish lifestyle by turning local everyday life into a commercial product. More attention should be paid to the internationalisation of cultural attractions and events. Cultural services are too often only available to domestic travellers. Synergy benefits could be reached in marketing, for example, by launching cooperation between cultural and tourism services. Culture also includes a new way of life, the characteristics of the area, traditions and practical skills. These should be seen and utilised as elements that enrich tourism products and underline experiences. The lively Sámi culture is one of the most important attraction factors in Lapland's tourism. Tourism products connected with the Sámi culture must be developed from the point of view of the Sámi people, emphasising genuineness and respecting culture. Wellness tourism can be divided into health and fitness holidays (well-being) and pampering holidays (wellness). 42 The main motive of health and fitness travellers is to enjoy physical activities. A pampering holiday, in turn, includes different types of spa treatments and relaxation. Lapland's tourist centres and the Santa Sports Institute, for example, offer a variety of products and services fulfilling the criteria of a health and fitness holiday. Lapland also has services that fit in the wellness category. According to the Finnish Tourist Board's Wellness Tourism Development Strategy, there are no wellness hotels in Finland that would match international standards. More distinct quality and product criteria must be introduced for wellness tourism, and the key wellness tourism products must be recognised in Lapland's range of products and services. A high-quality Lapland Wellness product matching special criteria should be developed in order to address the needs of international travellers. The product should offer a close-to-nature alternative to the spa culture of Central and Southern Europe. A Lappish pampering product is not inferior to similar European products but rather 41 The Finnish Tourist Board's product themes 42 Wellness Tourism Development Strategy

49 differs from them in terms of its content. There is development potential in fitness tourism for attracting keepfit enthusiasts and top athletes alike. Goals and measures: Product themes based on Lapland's attraction and strengths will be developed. Special attention will be paid to developing nature, wellness, culture, Christmas and winter products. Opportunities will be outlined for adopting the theme concept model in Lapland (the Bayern model). The range of summer products will be developed in order to better address the needs of international customers and to increase year-round tourism activity. The services of tourist centres and national parks will be combined with the aim of introducing a driver product for summer travel for the global market. Fishing tourism will be developed by building fish ladder for salmon in the river Kemijoki and investing in product development and cooperation between entrepreneurs. Lapland's experience expertise will be utilised in product development (the Lapland Centre of Expertise for the Experience Industry). Measures will be taken to develop new tourism innovations and content that serves the building of the Lapland brand. Traveller-specific income will be increased by extending the experience dimension and introducing more highly refined products (from the service business to the experience business). Lappish food, natural products, design and handicraft will be utilised in developing tourism products. Product development measures will be carried out in the form of projects and events arranged together by the tourism trade and operators engaged in the food, nature product, handicraft and design industry. The challenges of climate change will be addressed through product development work. Fish ladder will be established in the river Kemijoki. The MICE sector will be developed through supra-regional cooperation and by improving the overall coordination of congress services. Cultural tourism will be developed by increasing cooperation and networking between culture producers, creative sectors and tourism operators. In cultural tourism, use should be made not only of high culture, but also the Lappish way of life and traditions. A Lappish health and fitness holiday and pampering holiday will be determined and developed in wellness tourism. Fitness tourism should be developed and commercialised. In addition, more effective use should be made in tourism of Lapland's world heritage and cultural destinations and sites protected by the Unesco. Photo: Terhi Halonen 49

50 4.5.6 Accessibility The Regional Council of Lapland is preparing a transport system plan 43, which delineates the future goal state and development guidelines to According to the draft plan, financing will be directed to the management and maintenance of the transport system and to: the key legs of international transport and development corridors, improving accessibility, the hub service level, and the special needs of mines, tourism and other important industries. The boundary conditions of the transport system plan are the mitigation of climate change, measures to prepare for climate change, traffic safety, and an economic, efficient transport system. The aim of Lapland's tourism strategy is to make sure that Lapland can be accessed by different means of transport. Air traffic plays a key role in tourism, though the popularity of railway traffic as an ecological means of transport is also expected to increase in the future. Road traffic is important particularly from the point of view of domestic travel. The range of tourism products is diversified by sea transport, which has a lot of development potential. In developing transport, account should be taken of the entire transport chain. Feeder traffic from airports and railway stations must be fluent and sufficiently frequent. Public transport plays an important role in view of tourism. It must be capable of addressing transportation needs flexibly according to tourism seasons, for instance. Air traffic Developing air traffic is a basic precondition for the growth and internationalisation of Lapland's tourism. Lapland enjoys a good position in view of air traffic infrastructure, thanks to its six international airports that serve the entire region. However, there are still a number of problems connected with the accessibility of Lapland by air. There is little competition in scheduled air traffic, so tickets are expensive particularly during the high season. To a domestic traveller, a journey to an exotic destination is often less expensive than a holiday in Lapland. Efforts have been taken to develop charter traffic by collaborating with foreign tour operators and airlines. Development work has not been based on a long-term plan and goals, however, thus failing to sufficiently address Lapland's needs. Foreign partners have insisted that tourist areas in Lapland should react quickly to campaign offers, which has even led to competition within Lapland. Charter flight connections have been negotiated for one season at a time and it has often been uncertain whether they can be arranged at all. Lapland has shared marketing costs together with tour operators and airlines. The results achieved so far have not been convincing for Lapland, considering the contributions made. Airport-specific air traffic development projects have been financed in Lapland during the current programming period in Kittilä, Kemi and Kuusamo, for example. The focus in the projects has been on networking with international airlines and on communications and marketing. Presenting Lapland's tourism product and accessibility on international air traffic forums has proved useful, because the problem with Lapland is that it is not well known on the global market. Some positive results have been gained of developing scheduled air traffic - a route was opened from Paris to Kittilä during the season There are also plans to open direct routes from Germany and Russia to Lapland. However, increasing the traffic volumes of single airports will not be efficient in the long term, but one should move one step further: developing air traffic in Lapland comprehensively. A long-term plan must be drawn up for developing air traffic, setting out from Lapland's potential and points of departure. Special attention should be paid to opening new international routes, developing charter traffic extensively to serve the needs of all parts of Lapland and ensuring that enough transport capacity is available throughout the year. A good starting point for the development work is Finavia's Lapland Airports marketing concept. Pursuing cooperation between tourist areas and airports under the Lapland Airports concept will offer Lapland a better position in negotiations with foreign tour operators and airlines. If Lapland's accessibility is developed as a single whole, Lapland will have better opportunities to represent its interests in future. Helsinki-Vantaa Airport plays an important role as a gateway in international air traffic and particularly as the hub for flights serving the expanding Asian market. Opportunities for making more effective use of Helsinki- Vantaa Airport should be investigated in the future also with a view to developing domestic air traffic and Lapland's tourism. An air traffic hub is also being established in Oulu, which will benefit air traffic to Lapland. 43 Lapland's transport system plan, draft 50

51 Broad cooperation in developing air traffic is needed, as strengthening air traffic throughout Northern Finland will also promote the development of the tourism trade. Photo: Terhi Halonen Railway traffic: Railway traffic is expected to become more popular among travellers. Rail travel is environmentally friendly, compared with many other means of transport. In addition, VR (Finnish State Railways) has been developing the flexibility and customer friendliness of rail travel, which is very beneficial from the point of view of tourism. However, cooperation between the tourism trade and VR should be increased, as both of them would like to see an increase in traveller volumes. The tourism trade has capabilities for introducing rail travel products by means of which travellers can be attracted outside the tourism season. Customer-friendly products can be created if VR contributes to building a flexible pricing system. A faster Allegro rail link was opened between Helsinki and St. Petersburg in November The new link reduced travel time by a half to about three hours. It may also make Lapland more accessible to Russian travellers, though this will require investments in commercialising and marketing. Sufficient carriage capacity should be secured for high seasons. Railway traffic will be developed in order to address increased activity in the mining sector, which will also offer opportunities for developing rail travel. Extending the Kolari railway line to Ylläs and Levi will be one of the most important future goals in view of accessibility. Another major goal in tourism is to extend the Kemijärvi railway line to Salla and Kandalaksha. The number of border crossings by Russian travellers has increased quickly, and Russia will play a more prominent role as an adjacent area market in the future. This, too, speaks in favour of developing and maintaining the railway link in Kemijärvi. In addition, different types of railway link opportunities and route alternatives related to the Arctic Ocean are being investigated in Lapland. The railway network must be in good condition if the aim is to increase the number of rail travellers. The refurbishment of the Ostrobothnian railway line should be completed quickly and sufficient allocations should be set aside for railway maintenance. It is important in view of tourism that the railway line is electrified and that a rapid rail link is extended to Lapland. In developing railway traffic, the maintenance and development of service standards should not be forgotten either. The range of services available in terminal stations (e.g. ticket sales) must be secured and their standards maintained at a high level. Sea traffic: Santa Claus' port in Kemi offers opportunities for developing new types of tourism products. Ice-breaker Sampo is already a highly attractive tourism product internationally. The number of cruise ships calling on Kemi could be increased. Currently the port services available in Southern Finland are more extensive and the ports are perhaps more favourably situated in view of cruises. However, the Port of Kemi can succeed in the competition for cruise travellers on account of its arctic location, Santa Claus and the tourism services 51

52 available in the area. Shipping companies are constantly looking for new ports to visit, and marketing investments should therefore be increased. Developing cruise tourism also calls for commercialisation. Among other things, one should find out in the future which destinations are suitable for large cruise traveller groups in summer. These destinations should be available throughout summer and be situated less than 200 km from Kemi. Cruise passengers usually stay overnight on board the ship. Road traffic: The main road network in Lapland is currently in fairly good condition, offering fluent transport connections to the neighbouring countries as well. The lower level network, however, does not fully meet the requirements of modern day transport. The signposting of service sites has been developed to match international practices. Traffic safety has been improved among other things by building pedestrian and bicycle ways in urban areas and tourist centres and underpasses at the intersections of snowmobile routes and roads. In addition, brochures have been given to international travellers to inform them of the special driving conditions in Northern Finland, such as the reindeer accident risk. The condition and trafficability of roads will be impaired in the future, due to the scarceness of roadkeeping allocations. Most of the funds available will be invested in measures to ensure that the road network will withstand everyday traffic. The lack of financing will reduce opportunities for developing traffic conditions. Yet these should be improved in order to secure accessibility and development of the tourism trade. Road tourism projects, such as the Scenery Road in Ylläs, cannot be implemented in future without separate financing. The necessary investments should be secured by representing interests. In addition, a survey covering all tourist flows (air, rail and road traffic) should be implemented in Lapland in order to better justify the requirements that the development of tourism will place on the transport system in the future (e.g. roadkeeping). From the point of the tourism trade, attention should also be paid to the pleasantness of the road environment. Clearing road landscapes and using high-quality roadside advertisements are good examples of developing the road environment. Feeder traffic between traffic service sites and tourist centres can be arranged fluently by bus or taxi. In bus transport, it has been impossible to address all tourist transport needs, due to scarce resources and the seasonality of needs. Another problem is schedules. Buses driving according to schedule cannot wait for customers if the plane or train is late. For tourism, it is important to secure adequate feeder traffic to tourist centres and regular, year-round bus traffic also outside the centres. This calls for public sector investments. One of financing methods proposed is to introduce a specific financing item through which tourism-based public transport could be supported. Accessibility In the previous chapter, accessibility was discussed from a concrete viewpoint in terms of transport. However, it can also be investigated from the point of view of the operational environment, service processes and communications. As a concept, accessibility means taking account of the needs of different audiences when developing products and services. Tourism services must be easily available and offer opportunities for involvement and experiences regardless of ones personal capabilities. Accessibility means promoting equality. In tourism services, it means that easy access must be ensured to all people, not just physically disabled, for example. Goals and measures: The aim is to make Lapland a region that can be accessed by different means of transport Air traffic in Lapland will be developed exhaustively through collaboration under Finavia's Lapland Airports concept. The aim in developing air traffic is to secure and develop scheduled flights at the national level and to open new direct scheduled flights to overseas destinations. In addition, measures will be taken to develop charter traffic in a more comprehensive and systematic manner. Railway traffic will be developed through closer cooperation between VR and the tourism trade by developing rail tourism products and by increasing demand outside the high season through flexible pricing. 52

53 Growth in the mining sector will be utilised in tourism by extending the Kolari railway line to Levi and Ylläs. Another aim is to open a railway link between Kemijärvi, Salla and Kandalaksha. The opportunities of the Arctic Ocean will also be outlined. Measures will be taken to influence the financing of the transport system. The purpose of representing interests is to ensure that the share of roadkeeping and public transport allocations is increased in state budget in order to secure sufficient, safe roadkeeping and public transport in Lapland. Feeder traffic between traffic service stations and tourist centres will be developed. The accessibility viewpoint will be taken into consideration when developing tourism services and products. Photo: Laplandfinland.com Tourism research, education and development The Lapland University Consortium (LUC) consists of three higher education institutions in Lapland: the Kemi-Tornio University of Applied Sciences, the University of Lapland and the Rovaniemi University of Applied Sciences. Two institutes have been established as spearhead projects in consortium-level cooperation: the Lapland Institute for Tourism Research and Education and the Institute for Northern Culture. These two provide education in the module 'Lapland of Experiences, Tourism and Culture, based on the Lapland University Consortium's innovation programme. Founded in autumn 2009, the Lapland Institute for Tourism Research and Education is a unique venue of expertise combining all levels of tourism education with innovative research and development activities. The aim is to make the Institute a unit offering regionally superior and nationally effective research, education and development services of high international quality. It develops tourism industry education and research in close collaboration with the business sector, the international scientific community, educational organisations and authorities in Lapland. The Lapland Institute for Tourism Research and Education comprises the tourism research subject of the University of Lapland, the tourism and hospitality management sector of the Rovaniemi University of Applied Sciences, and the Lapland Tourism College. Its key partners are the Lapland Centre of Expertise for the Experience Industry (LEO), the Kemi-Tornionlaakso Municipal Education and Training Consortium Lappia, the East Lapland Vocational College and the Educational Centre for the Sámi Area. The Institute's spearhead development projects have to do with tourism foresight, tourism safety, and tourism product development. With these projects, the Institute seeks to promote and develop a foresightoriented business culture, which is based on strong development networks, the needs of the tourism industry and advanced education and research expertise. Based on the guidelines of Finland's Tourism Strategy to and Finland's Action Plan for Tourism Research 44, the Lapland Institute for Tourism Research and Education is responsible for developing and coordinating national tourism foresight research and development measures. A national tourism foresight network, which is coordinated by the Institute, for collects, produces and disseminates foresight data to support the development of the tourism industry. The 44 Finland's Action Plan for Tourism Research 53

54 network consists of national providers of tourism foresight data, experts and the users of such data. The priorities and content themes of the tourism foresight network are managed by the national tourism foresight strategy group. The aim of the tourism foresight development activities pursued by the Lapland Institute for Tourism Research and Education is to make the foresight data and expertise obtained through the tourism foresight network available to tourism operators, for use as an aid to business development, strategic planning and decision-making, for instance. Foresight development activities are provided to address the needs of the tourism trade, ensure easy access to and exploitability of data, and support future-oriented business and development. The aim of foresight development is to identify and react to changes expected in the operational environment in the tourism industry. Content-related foresight focus areas are customer insight, finance and markets, and future foresight. The Lapland Institute for Tourism Research and Education pursues cooperation with other tourism development organisations, such as the Institute for Northern Culture, the Lapland Centre of Expertise for the Experience Industry and the Finnish Lapland Film Commission. The purpose of the Institute for Northern Culture is to enhance the viability and well-being of Lapland and northern areas by developing cultural heritage and production through education, research and art. As for the tourism industry, the Institute works to identify needs to develop and commercialise cultural services in tourism and to promote cultural exports, for example. The Lapland Centre of Expertise for the Experience Industry LEO is an expert in the experience economy. It helps companies succeed in the face of changing competition by introducing new forms expertise and tools for experience management, Internet marketing, the collection and exploitation of customer information, and the utilisation of trends of key importance to the tourism industry. As a special priority, LEO seeks to strengthen cooperation between tourism and the content business, such as the film industry, and foster the benefits obtained from this. LEO coordinates the national Tourism and Experience Management Cluster Programme (OSKE). The Cluster promotes the growth, demand and competitiveness of companies in the tourism industry by introducing new information, tools and operating models for use by the relevant operators. It also works to promote the reform of the industry by providing access to the latest information and special expertise, inviting tourism operators to participate in projects that generate new ways of action and disseminating best practises between different sites in Finland. The focus areas are experience management, e-business, service formulation and foresight. The Finnish Lapland Film Commission, which is part of LEO, markets Finland as a filming location for Finnish and international production companies. Film productions are connected with tourism in a variety of ways, which is discussed in more detail in Section The above operators together make up an efficient team for investigating, promoting and developing the tourism industry. Although each of them has a distinct role in the development work, the best results can be obtained through fluent cooperation, dialogue and exchange of information between development organisations. This cooperation should be developed further. Goals and measures: The educational institutions and development organisations in Lapland will produce high-quality tourism research data, which is disseminated effectively and in an easy-to-use form. The research data will be used to guide the development of tourism. Regional special measures will be introduced in order to develop tourism statistics. Educational institutions and development organisations in Lapland will cooperate with the tourism trade in order to create new service and product innovations and develop tourism. The competitiveness of companies will be supported and developed. Tourism businesses will be provided with access to the latest knowledge and research data. The aim of tourism education is to qualify multi-skilled experts with top-flight competence, capable of addressing the labour needs of tourism in Lapland and producing tourism services of outstanding quality. 54

55 Photo: Terhi Halonen Quality and safety of tourism Safety: Safety is among the factors that contribute to quality in tourism. In addition to economy, it is the most important single factor affecting the tourism industry. Traveller volumes can only be increased in areas where travellers feel safe. Lapland, and the whole of Finland, currently enjoy the image of being a safe tourist area. However, maintaining this image will require constantly anticipating and controlling any tourism-related safety risks. This can only be done through broad cooperation committing the various operators and through overall safety coordination. The Regional State Administrative Agency of Lapland coordinates safety and security work in Lapland's tourism in accordance with the national Internal Security Programme and the goals of Lapland's Tourism Strategy. A tourism safety and security system will be created in Lapland through broad tourism safety cooperation, with the aim of making Lapland the safest tourist area in Europe. The aim of the safety and security system is to ensure the undisturbed operation and favourable development of the tourism trade. This can be done by improving the exchange of information between tourism businesses, regions, municipalities, authorities and education and development organisations and by developing measures to promote the safety of tourism and to prevent and control risks. The safety and security system will cover all levels: customers, companies, and the municipal, regional level and national level. The scheme will for the first time summon all the operators engaged in the tourism trade, such as companies, tourist areas, municipal and state authorities, and parties supervising contractual relations, for joint negotiations. The tourism safety and security system will cover all stages of the tourist transport chain, and commercial activities, risk management and foresight. The tourism safety and security system was initially constructed through a network project, in which the network operators and their roles were defined, preconditions were created for communications and for utilising and maintaining the network, and development and educational needs were determined. During the current strategy period, the tourism safety and security system will be concretely adopted as a permanent operating model in all parts of Lapland with the help of an additional project. Based on this cooperation, a nationally and internationally important tourism safety and security cluster of expertise has been established in Lapland. The Ministry of the Interior, the Lapland Institute for Tourism Research and Education and the Santa Sports Institute signed a partnership agreement on 15 June 2010, which concerns developing the safety and 55

56 security of tourism at the national level based on tourism safety and security network cooperation in accordance with Lapland's Tourism Strategy. In spring 2011, the tourism safety and security system was ranked as the best research, development and innovation project in the national Kärjet 2010 competition, which was arranged between the universities of applied sciences in Finland. In addition, the Committee for Security and Defence Affairs awarded Lapland's safety and security network the Timanttiteko 2010 prize. The tourism safety theme is also included in a national foresight research programme, which is coordinated by the Lapland Institute for Tourism Research and Education. Safety cooperation is also one of the key development targets of 45 Lapland's Well-Being Programme for Quality Lapland has been the leading region in terms of quality for a long time. This position can also be maintained in the future by continuing quality measurement and development efforts and integrating them with the basic operation of tourism businesses and tourist centres. However, this alone is not enough, but one must also take one step forward in quality work in order to remain competitive. The next focus areas in developing quality could be occupational well-being management, HR strategies, and business internationalisation strategies. This will support the goal of Lapland's regional programme, according to which Lapland should be made into a region that attracts labour. Measures targeted at improving occupational well-being will play an important role in this respect. Here, promoting the internationalisation of tourism businesses means in particular increasing cultural knowledge and introducing companies to the business practises and policies employed in different cultures. The aim is to improve their ability to operate efficiently and productively in new market areas, such as the growing Asian market. Taking account of sustainable development is an important element in quality. Tourism must be developed in an ecologically, socially and culturally sustainable manner. Sustainable tourism is also a competitive asset if implemented in a convincing manner and communicated effectively to travellers. Goals and measures: Lapland will be developed into an example area for safe tourism. Fluent operation in the tourism industry will be secured by implementing a tourism safety and security system. A national set of standards will be planned and implemented for the safety of tourism. The outstanding quality of tourism will be maintained by integrating quality work with the basic operation of tourism businesses and tourist centres. Work on developing the quality of tourism will be taken to a new level by paying attention to occupational well-being and promoting the internationalisation of companies, for instance. Account will be taken of sustainable development as an integral part of the quality of tourism Land use, construction and infrastructure The goals and needs of different sectors and operators will be taken into consideration in land use planning. The land use needs of forestry, the mining industry, tourism, energy production, and reindeer husbandry and other natural means of livelihood in Lapland can differ considerably. Efforts will be taken to match up the views of different parties through planning work and various types of collaboration procedures. At the regional level, land use is governed by the regional land use plan, which sets out the principles of community structure and land use. The national land use objectives laid down by the Government will be taken into consideration in regional planning. The regional land use plan expresses the national objectives in concrete form and matches them up with regional and local objectives. It recognises the special features of each area and describes and points out development targets, routes and possible special sites and zones. Lapland s regional land use plan sets out development zones for tourism and recreational use. The zones show the existing tourism services, and sites attractive from the point of view of tourism. These areas will be developed as a collaborative whole made up by tourist centres, rural tourism, services and routes. Master plans and town plans are drawn up for the areas by municipalities. Preparing master plans for tourist areas is 45 Lapland's Well-Being Programme

57 a challenging process, as it usually requires the reconciliation of a variety of land use needs. Development plans and master plans with legal effect have been prepared for the key tourist areas in Lapland. Development, environmental and regional plans (master plans) have been drawn up for tourist centres. They designate investment and building sites and areas set aside for different activities. The master plan is an important tool for developing tourist centres, as it sets out guidelines for statutory land use planning and land use far into the future and promotes the outlining of regional environmental issues, for instance. In building tourism facilities, attention will be paid to the quality of design and the pleasantness of the built-up environment. The building of tourist centres into compact service centres and pedestrian villages protects the environment from any harmful effects that tourism may have and maintains the attractiveness of the area. Tourist centres have been developed by arranging architectural competitions, for instance, in which the aim is to secure the high architectural quality of all design and construction and compliance with the principles of ecological construction, and to promote the profiling of the sites. The most recent architectural competition was arranged in Saariselkä and Ylläs. In addition, many tourist centres have paid attention to environmental construction so as to keep the environment inviting throughout the year and to support measures for promoting year-round tourism activity. Environmental construction can also be used as a means of highlighting the profile of the area. The aim is that all centres have an environmental or landscape management plan, which will promote the sustainable use, functionality, accessibility, wear resistance, recovery and estheticness of natural and green areas in built-up environments. The landscape management plan will also enhance capabilities to offer natural experiences and support companies that produce wellness services and natural programme services. Natural forests and landscapes are an important resource for tourism, which often has to compete against other forms of forest use. Determining the recreational values of forests and nature also offers a chance to assess land use from the point of view of intangible benefits. The benefits gained from forests in tourism can be much higher than if forests were harvested for use as raw material in wood production, for instance. Methods should be developed in the most important tourist areas for paying compensation to forest owners for the financial losses they incur from preserving forests in a state that allows their use for tourism and recreation. Methods for assessing the economic benefits of using forests for tourism and recreational purposes are constantly being improved. The Finnish Forest Research Institute and the University of Lapland, for instance, have implemented a research programme entitled 'Well-Being from Forests', in which tools were developed for including social information in plans concerning the use and management of forests. The tools include land use visualisation (landscape simulators) and mapping the social values of forests. The aim is to make more extensive use of these evaluation methods in land use planning and in assessing the needs of the tourism trade in future. Where necessary, the development of the tourism trade should be secured e.g. through recreational value trading or other suitable compensations. The quality and maintenance of the infrastructure connected with nature tourism must be secured in the future. There have been no problems so far in reconciling the interests of mining operations and tourism. However, in some cases mining may hamper tourism if the tourism industry is not taken into consideration when mining plans are prepared. Among other things, one should take account of the effects of the mine on the landscape, high noise levels and the loads caused by heavy traffic. For the tourism trade, the quarrying of uranium places a special challenge, as it is considered to harm Lapland's image, which is based on pure nature. However, no measures related to the quarrying of uranium are currently being planned in Lapland even though research covering all ore resources is currently in progress. The sustainability viewpoint has become more important in tourism in the last few years. Attention is paid to increasing the energy efficiency of the tourism trade and to using renewable, environmentally friendly energy sources. Projects developing the use of bioenergy and investigating the carbon footprint of tourist centres, for example, have also been implemented in Lapland. New measures must still be developed and education increased in order to improve energy efficiency. Good practises should be introduced in all tourist centres in Lapland. To appear as a convincing destination for sustainable travel, Lapland must be able to produce renewable energy. Bioenergy and wind farm projects are being prepared in many areas. However, wind farms have also aroused resistance, as they are considered to spoil the landscape. In addition, the production of renewable energy must be taken into consideration in land use planning and measures launched to match up production with the needs of tourism and other industries. 57

58 Goals and measures: The land use needs of different industries will be reconciled. The recreational values of forests and nature will be determined and taken into account in land use planning and in reconciling utilisation needs. The construction and maintenance of infrastructure related to nature tourism and the recreational use of forests will be secured. Measures will be taken to ensure that the infrastructure necessary for developing tourism is adequate and of sufficiently high quality. Tourism and environmental construction will be planned and implemented in an ecological, high quality manner. Environmental and landscape management plans will be drawn up for tourist centres in order to develop year-round tourism activity. Efforts will be launched to improve energy efficiency in tourism, and renewable, environmentally friendly energy sources will be favoured in energy production. Photo: Terhi Halonen 58

59 4.6 PROMOTING THE OPERATIONAL PRECONDITIONS OF THE TOURISM TRADE Developing tourism in Lapland depends on national political decisions, which may have direct or indirect impacts on the tourism industry. This section discusses some of the themes that Lapland wishes to influence through the representation of interests. Government support to tourism The role of the tourism trade in the export industry and service exports is currently underrated despite the fact that it is a very important source of employment. In addition, it is the only industry where Finland has outstanding growth opportunities on the global market. However, the current state of the industry does not match the potential that it offers. Lapland supports the goal of launching a strategic tourism programme in Finland 22, which was set out in Finland's Tourism Strategy to There is an evident need for such a programme, as it will allow better combination and coordination of the development activities of different administrative sectors. Tourism is multi-dimensional and its effective development calls for overall coordination. Accessibility, marketing, taxation and many other themes should be developed simultaneously in order to promote tourism. Tourism should be treated as any other form of export industry. The government is investing millions of euro in promoting industry and technology exports but seems to be reluctant to provide similar support to service industries. Service exports grew considerably in the 2000s by as much as a three-fold during just a decade. The value of service exports amounted to EUR 15 billion even in the recession year Continued growth is expected in exports in tourism and other service sectors in the future. Sufficient resources must be secured for the tourism trade for internationalisation, marketing and other development activities. More resources should be assigned in particular to implementing tourism marketing measures and securing Finland's international visibility. For example, the allocation set aside for the Finnish Tourist Board in the 2011 Budget was EUR 10.2 million, which is a half a million euro more than in When assessing the amount of allocations, it should be noted that the activities of the Finnish Convention Buro were moved under the Finnish Tourist Board. Allocations are developing in the right direction, but compared to its competitors, Finland still invests too little in international tourism marketing. Taxation The prices of tourism services in Finland are high on European standards, and Finland is known as an expensive country among international travellers. This is partly due to high taxes and labour costs. The expensiveness of Lapland's tourism product is also due to costs related to accessibility. Owing to its location, Finland will never be an inexpensive country for travellers or a mass travel destination. Yet decisions should be made concerning taxation, for instance, in order to maintain Finland's competitiveness and keep the cost level in the tourism industry moderate. 22 The impact of tax-like payments charged from the tourism trade on the profitability of companies was investigated in a survey commissioned by the Ministry of Employment and the Economy in According to the survey, the value-added tax rate for restaurant services should be reduced. The Government made a decision about the matter in autumn 2009, and the VAT reduction for restaurants entered into force at the beginning of July With the change, the VAT rate for accommodation and restaurant services was reduced from the standard rate (9% for accommodation and 13% for restaurant services), which brought prices to a competitive level on European standards. However, the standard VAT rate in Finland is still 23%, which is the third highest of all EU countries. 22 Yet there is again debate about increasing consumption taxes (including VAT). The goals of Finland's Tourism Strategy 22 with regard to developing taxation: - to keep the VAT rate at a competitive level on European standards, - to reduce the electricity tax rate of service trades to the level of industry, - to promote environmentally friendly energy solutions with the help of tax incentives, - to oppose tax-like fees that discriminate countries situated in boundary areas in Europe. 46 Foreign trade in services in Reports of the Ministry of Employment and the Economy,

60 Lapland's tourism trade supports the taxation-related goals of Finland's Tourism Strategy and opposes the increase of consumption taxes. Increasing consumption taxes and the alcohol tax will impair the competitiveness of the tourism industry and may impair its employment effect. Labour Tourism is a labour-intensive service industry. The availability of skilled labour has long been recognised a factor important to the competitiveness of the tourism industry. Yet people employed in the tourism industry are still poorly valued and their wages are small. The industry employs high volumes of hired labour, which is due to major seasonal fluctuations. According to the current sector forecast published by the Government Institute for Economic Research, tourism-related employment is expected to decrease considerably in the next few decades. However, this estimate cannot be considered justified for Lapland, where there was still a lack of skilled labour in the tourism industry just a few years ago. Anticipating future labour needs cannot be based on a weak economic period but must be assessed in the light of long-term trends. In fact, actual trends in tourism in the 2000s suggest that more labour will be needed in the tourism industry in the coming years. It is estimated in Lapland that the employment effect of tourism will remain at the present level for the next couple of years. However, employment will begin to rise again in 2013 at the latest, provided that the economy of the euro area continues to develop positively. Skilled labour will be needed in the future, particularly in programme services. Travellers will expect more of their travel, and demand will focus on more personalised, customised services. This will increase the need for personnel. Sufficient educational opportunities must be secured for the tourism industry at all levels in order to ensure the availability of sufficient labour in the future. Special attention must also be paid to the quality of education, as companies place higher demands on competence, and these demands change quickly. The role of employees in tourism has been investigated e.g. in the University of Lapland's research project 'Tourism as Work' 48. The results show that a change has taken place in tourism employment. In addition to showing competence and having a professional identity, employees in the tourism industry are more often expected to have personal characteristics that enable them to offer experiences and to perform in front of an audience. Flexible experts with broad competence are sought in order to address the labour needs of the tourism industry. On the other hand, tourism employees should have strong mastery over their professional field. In other words, they should be both professional and multi-skilled. According to the survey, the appreciation of employment in tourism today does not match the demands of the work. Tourism employment consists of service and security work, which calls for a wealth of expertise, and therefore its role in developing the tourism industry should be recognised. Higher appreciation of the tourism industry would make it appear more attractive to young people. In addition, hardly any use is currently made of the knowledge and skills that employees have about developing tourism services and products. 48 The appreciation of tourism employment can only be improved by taking measures at the national level and within the tourism industry. There also other factors that affect the availability of labour, such as basic services (day-care centres, schools, health services) and housing. Municipalities and tourist centres have paid attention to these among other things by building more housing for tourism employees. However, committing them to become permanent inhabitants in the municipality most of all requires that work is available throughout the year. Traffic The goal in Finland's Tourism Strategy to 2020 is to promote accessibility and in particular to improve the operational preconditions of railway and air traffic. 22 However, at the level of measures, the strategy only takes up the development needs of Helsinki Metropolitan Area in terms of railway traffic, for instance. There are major railway traffic development needs in Lapland, which are based on strong growth expectations in the tourism and mining industries. Interests must be represented among other things to ensure that the railway network is maintained and electrified, the Kolari railway line is extended to the tourist centres of Ylläs 48 Tourism as work. 60

61 and Levi, night train service is developed and a sufficient standard of service is maintained in railway traffic in general. National transport system service standards are currently being defined. There is need to define a standard of basic service in Lapland, based on the transport needs of the local population, and a special standard of service that takes account of seasonal fluctuations in tourism. The range of public transport services should be flexible and meet seasonal requirements. The transport chain available to travellers should offer as fluent and quick travel as possible all the way from the point of departure to the final destination. Photo: Terhi Halonen 61

62 4.7 ROLES OF OPERATORS IN DEVELOPMENT WORK There are a wealth of operators and stakeholders in the tourism industry. The most important operator is the tourism entrepreneur, whose business is directly or indirectly linked with the network consisting of many stakeholders, developers, financiers, project operators and researchers, for instance. Lapland's tourism operators and their roles in development work are described in the table below. It should be noted, however, that the information is not exhaustive and lacks national operators, for instance. A good example of a national operator is the Finnish Tourist Board. The information nevertheless provides a picture of the complex range of operators involved in the tourism industry. Roles of operators in developing tourism in Lapland Operator Tourism entrepreneurs Municipalities of Lapland Regional tourism organisations Lapland Institute for Tourism Research and Education Institute for Northern Culture Lapland Centre of Expertise for the Experience Industry LEO Nature services of Metsähallitus Finnish Forest Research Institute Regional Council of Lapland Lapland Centre for Economic Development, Transport and the Environment Regional State Administrative Agency of Lapland Finnvera Tourism working group (representatives of financing organisations) Committee of Tourism of the Lapland Chamber of Commerce Figure 29, Source: Regional Council of Lapland Task description Business, commercialisation and product development Securing and developing the operational preconditions of the tourism industry; regional planning, tourist information Developing and marketing tourism at the level of regions/centres Information production, research and development Information production, research and development Introducing new competence and tools for experience management and Internet marketing, for example. Strengthening cooperation between tourism and the content business. Coordinating the national Tourism and Experience Management Cluster Programme (OSKE). Developing the attractiveness of national parks: product development (particularly the snow-free season), communications and business cooperation. Maintaining and developing nature tourism infrastructure. Nature tourism research, cooperation with the Multidimensional Tourism Institute (MTI) Financing, regional strategy work, coordination, interest representation (image marketing) Financing Safety and supervision of tourism Financing Coordinating and combining structural fund projects and monitoring and reporting the implementation, results and effectiveness of projects; acting as an information channel between parties preparing projects; monitoring trends in the tourism industry. Monitoring trends in the tourism industry; interest representation in the tourism industry Development activities are most effective when operators are engaged in their own roles but still collaborate with other operators and different types of networks. The roles in the tourism industry are shown from an operational perspective in the figure below. 62

63 MARKKINAT Matkanjärjestäjät MEK Suuralueyhteistyö, Lapland North of Finland hanke matkailukeskukset/alueorganisaatiot /yrittäjäyhdistykset Yritykset TUOTTEET Figure 30, Source: Regional Council of Lapland 4.8 STRATEGY FOLLOW-UP AND ASSESSMENT The Tourism Coordinator of the Regional Council of Lapland is responsible for the coordination of Lapland's Tourism Strategy The implementation of the strategy and trends in Lapland's tourism are followed by Lapland Tourism Parliament, an annual event for tourism operators which is arranged in different parts of the region. Lapland's Tourism Strategy was updated in collaboration with entrepreneurs, regional organisations, authorities and other operators engaged in the tourism industry. Municipalities, sub-regions, regional organisations, regional authorities and other key stakeholders were asked to submit official opinions about the draft strategy, and the content of the strategy was shaped on the basis of the feedback received. The implementation of the strategy is assessed in terms of the extent to which quantitative and qualitative goals are fulfilled. The Regional Council of Lapland is constantly assessing the strategy together with the tourism trade and other operators. Implementation is also monitored by the steering group of the Strategic Development of Tourism project of the Regional Council of Lapland. 4.9 ENVIRONMENTAL IMPACT ASSESSMENT Lapland's Tourism Strategy is subject to the Act on Environmental Impact Assessment Procedures for Official Plans and Programmes (200/2005), which entered into force on 1 June The act and the complementary government decree (347/2005) contain a provision for the general obligation to monitor environmental impacts sufficiently in the preparation of plans and programmes. The principles of interactive, open planning practises have been taken into consideration in the strategy work. Lapland's Tourism Strategy is a short-term development document, which sets out strategic goals and policies for developing tourism during the next four years. The effects of the strategy are materialised indirectly through the implementation of the projects and development activities defined in the strategy. The environmental impacts of the strategy have been assessed from the point of view of its strategic goals (see Annex 4). The environmental impact assessment work is a continuous process, which is pursued along with monitoring the other goals of the strategy. Lapland's Tourism Strategy is an update to the previous strategy, which was in force in The latter strategy had a positive effect on the development of tourism in Lapland, particularly with respect to developing the environment and improving the quality of tourism. Developing tourism in an ecologically, socially and culturally sustainable and controlled manner will remain as the value base of the tourism strategy in future. The benefit of setting out from tourist centres in development work is that the 63

64 environmental impacts of tourism can be limited to specific areas, which saves nature. The tourism trade depends on air traffic, whose development into a more environmentally friendly means of transport will be a major challenge in the future. According to Lapland's Tourism Strategy, accessibility should be improved by developing the means of transport and offering a wealth of transport alternatives (railway and bus transport), which would enable travellers to choose a more ecological transport alternative. The strategy emphasises the role of project-specific assessment in preventing negative effects. The social, ecological and economic effects of projects are assessed sufficiently, based on the principles of sustainable development. 5. SUMMARY The most important development themes in Lapland's tourism during the current strategy period are connected with building a regional operating model for marketing tourism, developing year-round tourism activity and improving accessibility Finland and Lapland are still poorly known as travel destinations. It is necessary to launch more effective tourism marketing efforts in order to ensure sufficient visibility on the global markets. More power is sought for regional tourism marketing by entering new alliances and by building an operating model that will combine a publicly funded image marketing project and privately funded product marketing efforts into a mutually supporting package. At the same time, earnings logic will be developed, together with operating models, which will allow the collection of resources for regional marketing in the future. To improve profitability, Lapland's tourism needs a third season - the summer - in order to complement its strong Christmas and winter seasons. New, creative solutions will be sought during this strategy period so as to develop year-round tourism activity. One alternative is to commercialise the range of services offered by national parks and tourist centres into a single, shared tourism product under the 'Green Tourism' theme in order to attract international travellers in particular. Activating summer travel will call for increasing traveller volumes, which can only be done with the help of attractive products and carefully targeted marketing. Accessibility is and will be a critical factor in view of developing tourism. The most important means of transport is air traffic, which will be developed in collaboration with Finavia, airlines and operators engaged in the tourism industry. The role of rail travel will also become more prominent in the future. To prepare for strong development prospects in the tourism and mining industry, Lapland has set goals for extending the railway network. In addition, the tourism strategy sets out goals for developing e-business, for product development, research, quality, safety and security, and for land use. The aim is to develop tourism based on the strategy's values in order to maintain Lapland s image as an inviting, attractive destination to travellers and the local people. Photo: Laplandfinland.com 64

65 ANNEX 4: ENVIRONMENTAL IMPACT ASSESSMENT OF LAPLAND'S TOURISM STRATEGY STRATEGIC GOALS/PRIORITIES TOURIST CENTRES AND TOURISM ZONES Emphasising the development of centres and zones Promoting profilation Supporting the operational preconditions of the tourism trade and entrepreneurship CHANGES CURRENT STATE + Allows strong development measures. Centralising services will promote the growth of tourism and help control its negative effects. IMPACTS 1 ON POPULATION, HEALTH, LIVING CONDITIONS AND PLEASANTNESS + Creates jobs and increases and maintains the range of services available. 2 ON NATURAL DIVERSITY, FLORA AND FAUNA AND VEGETATION + Keeping tourism in a small area will help control its negative effects. 3 ON SOIL, WATER, AIR AND CLIMATE FACTORS + Concentrating tourism in a small area will help control its negative effects. 4 ON REGIONAL AND COMMUNITY STRUCTURE + Strong tourist centres and tourism zones and support to entrepreneurship will increase income and the number of jobs and maintain the service level of rural areas. This will mitigate migration from rural areas to cities and help maintain the viability of villages. 5 ON THE BUILT-UP ENVIRONMENT, LANDSCAPE AND URBAN IMAGE; ON TANGIBLE PROPERTY AND CULTURAL HERITAGE - Changes the landscape and the environment. + Promotes the appreciation of cultural heritage. 6 ON EXPLOITING NATURAL RESOURCES - Tourism growth consumes natural resources + Promotes the appreciation of the natural environment. MARKETS AND CUSTOMERS Seeking growth on the international markets Keeping domestic demand keen PRODUCTS, SERVICES AND YEAR-ROUND TOURISM ACTIVITY Theme-based development (nature, well-being, culture, Christmas and winter products) Developing summer travel + The Internationalisation of tourism will increase export income and make tourism less dependent on domestic demand + Developing yearround tourism services will make the tourism industry less dependent on seasons, create jobs and improve investment utilisation rate +/- Multiculturalness will increase + Jobs will be available throughout the year, so employees can settle down in the area permanently. +/- +/- +/- Reconciling the needs of different customer and interest groups will call for high-quality planning +/- +/- + Year-round jobs will create permanent settlement and stabilise the community structure. +/- Reconciling the needs of different customer and interest groups will call for high-quality planning + Product themes based on traditions and the local culture will increase people's awareness of culture and promote the appreciation of culture. +/- + Sustainable nature tourism will increase people's awareness of arctic nature. - Nature tourism may have negative effects on nature if not implemented in a controlled manner. MARKETING Introducing a new operating model for international marketing Increasing cooperation ACCESSIBILITY Developing air and railway traffic Ensuring sufficient public transport and safe roadkeeping + Regional tourism marketing saves resources and improves visibility on the international market + Improved transport connections will promote the attractiveness and competitiveness of the region +/- +/- +/- +/- +/- +/- + Improved transport connections will also benefit the local population. +/- +/- + Good accessibility will also enhance the success of other industries.

66 ANNEX 4: ENVIRONMENTAL IMPACT ASSESSMENT OF LAPLAND'S TOURISM STRATEGY (continues) RESEARCH, EDUCATION AND DEVELOPMENT Providing high-quality research data that support the development of tourism and the competitiveness of companies Securing the availability of labour through highquality education QUALITY AND SAFETY Securing the fluency of tourism activities LAND USE, CONSTRUCTION AND INFRASTRUCTURE Reconciling industries Ensuring high-quality planning and construction + R&D&P?? activities will increase competence and thereby promote the profitability and competitiveness of companies. + Increases the chance of new innovations. + Education will secure the availability of skilled labour. + Quality sub-factors include promoting the safety and sustainable development of tourism. + Regional planning and high-quality construction will promote the competitiveness and sustainable development of the tourism industry. + Increased intellectual capital will improve the efficiency of work. + The aim is to ensure that conditions are safe to travellers and to people employed in the tourism industry. + Taking the needs of the local population into consideration in planning and reconciling interests and making sure that they feel at home. + Research data on the effects of tourism will help choose sustainable operating models. + An effective infrastructure is an important quality sub-factor. + The negative effects of tourism can be reduced by providing a highquality range of services and guiding the moving of travellers. + Research data on the effects of tourism will help choose sustainable operating models. + An effective infrastructure is an important quality subfactor. + The negative effects of tourism can be reduced by providing a high-quality range of services and guiding the moving of travellers. + Research data on the effects of tourism will help choose sustainable operating models. + An effective infrastructure is an important quality sub-factor. + High-quality planning will help reconcile the interests of different industries in land use. + Research data on the effects of tourism will help choose sustainable operating models. +/- +/- + Planning will ensure that construction is pleasant, effective and takes account of local culture. + Research data on the effects of tourism will help choose sustainable operating models. + Planning will help reconcile the interests of different industries in land use. 66

67 ANNEX 1: Steering group responsible for managing the update process of Lapland's Tourism Strategy: Esko Lotvonen, Executive Director, Regional Council of Lapland (Chairman) Maiju Hyry, Development Director, Regional Council of Lapland (Vice-Chairman) Satu Luiro,Tourism Coordinator, Regional Council of Lapland (Secretary) Kaarina Mäcklin, Project Secretary, Regional Council of Lapland Mervi Nikander,Programme Manager, Regional Council of Lapland Minna Hietanen, Regional Development Expert, Regional Council of Lapland Anneli Harju-Autti, Tourism Industry Manager, Lapland Centre for Economic Development, Transport and the Environment Sanna Kolomainen, Senior Inspector, Lapland Centre for Economic Development, Transport and the Environment Sakari Kokkonen, Regional Manager, Metsähallitus, nature services Martti Oinas, Northern Finland Regional Director, Finavia Eila Linna, Development Director,Lapland Institute for Tourism Research and Education Sanna Tarssanen, CEO, Lapland Centre of Expertise for the Experience Industry Seppo Lehto, Senior Rescue Inspector, Tourism Safety and Security System, Regional State Administrative Agency Tiina Wallin-Jatkola, Managing Director, Ylläs Avain Ltd. Nina Forssel, Managing Director, Ylläs Travel Association Sanna Kortelainen, Managing Director, Rovaniemi Tourism and Marketing Association Rauno Posio, Marketing Director, Lapland Safaris Ltd, Chairman of the Tourism Committee of the Lapland Chamber of Commerce. Ari Vuorentausta, Director, Lapland Hotels Kari-Jussi Aho, Chairman of the Board, Pyhätunturi Ltd

68 ANNEX 2: Accommodation and restaurant industry by sub-region and municipality 2008 Majoitus- ja ravitsemistoiminta vuonna 2008 (TOL I) Toimipaikat Henkilöstö Liikevaihto (1000 euroa) Itä-Lappi Kemijärvi Pelkosenniemi Posio Salla Savukoski Kemi-Tornio Kemi Keminmaa Simo Tervola Tornio Pohjois-Lappi Inari Sodankylä Utsjoki Rovaniemi Ranua Rovaniemi Torniolaakso Pello Ylitornio Tunturi-Lappi Enontekiö Kittilä Kolari Muonio YHTEENSÄ Lähde: Tilastokeskus, yritys- ja toimipaikkarekisteri Toimialaluokitus TOL 2008 Figure 31 68

69 ANNEX 3: Regional tourism organisations in Lapland 1/2010 Rovaniemi Tourism and Marketing Ltd Ainonkatu Rovaniemi Tel (0) Fax +358-(1) firstname.surname@rovaniemi.fi Pyhä-Luosto Tourist Association Business Centre Pyhätunturi Tel (0) Fax +358-(0) firstname.surname@pyha-luosto.fi Northern Lapland Tourism Ltd Saariseläntie Saariselkä Tel (0) Fax +358-(0) pohjoislapinmatkailu@saariselka.fi Levi Tourism Ltd Levi Tel (0) Fax +358-(0) levin.matkailu@levi.fi Travelling in Salla Association Hautajärventie Salla Tel (0) Tel (0) Fax +358-(0) firstname.surname@salla.fi Ylläs Tourist Association Lehontie Äkäslompolo Tel (0) Fax +358-(0) info@yllas.fi Sea Lapland Tourism Association Kemi-Tornio Regional Development Centre Sairaalakatu Kemi Tel (0) Fax +358-(0) firstname.surname@kemi-tornio.fi sealapland@merilappi.com Suomu Tourist Association Kotakuja Suomu Tel (0) Fax +358-(0) matkailuyhdistys@suomutunturi.fi 69

70 Tornio Valley Kunnantie Pello Tel (0) firstname.surname@tornionlaakso.fi Posio Tourist Association Enontekiö Development Ltd 70

71 SOURCES Meetings of regional organisations Salla 16 April 2010 Enontekiö 23 April 2010 Pyhä-Luosto 27 April 2010 Saariselkä 28 April 2010 Suomu 29 April 2010 Rovaniemi 4 May 2010 Ylitornio 5 May 2010 Posio 25 May 2010 Levi 28 May 2010 Sea Lapland 9 June 2010 Ylläs Expert opinions: Tourism expert group of LAPPI LUO work programme Tourism strategy day 7 May 2010, workshop material Other sources: Fakta om svensk turism Tillväxtverket. Wellness Tourism Development Strategy Strategy for developing Finnish wellness tourism on the international market Finnish Tourist Board, 20 November Effects of spending by visitors to national parks and hiking areas on local economy. Nature services offered together by Metsähallitus and the Finnish Forest Research Institute Report 14 December 2009, matter no. 3017/52/2009. Kauppalehti.fi 13 June Wellness holidays the latest trend in tourism. Keränen, Markus Presentation in the Consumer Trends seminar, 18 September Koskelo, M Phenomena: Emerging phenomena and powers of change. Kulutus.fi 17 August 2009, Mimma Jäntti: Downshifting - Slowing down the pace of life. Kuosmanen, Marja: United States. Global market 2008, ed. Anne Ahonen. Publications of the Ministry for Foreign Affairs. Helsinki Lohas.com Steve French and Gwynne Rogers: Understanding the LOHAS Consumer: The Rise of Ethical Consumerism. A Strategic Market Research Update from the Natural Marketing Institute (NIM). Lapland's Wellness Programme /Life force from Lapland! Regional Council of Lapland Lapland's KOTTI company interviews Lapland Centre for Economic Development, Transport and the Environment Lapland's Transport System Plan: Initial goal states and development guidelines for Draft 12 January 2011 Regional Council of Lapland. 71

72 Lapland's Tourism Strategy , Regional Council of Lapland Publication A22/2008, ISBN Rovaniemi Tourism Facts in Lapland, Statistical Review Internet publication by the Regional Council of Lapland, x xx Lapland's tourism statistics Monthly updated database based on Statistics Finland's statistics of overnight stays. Preliminary survey of the general coordination project for developing e-business expertise in Lapland. Action plan, drawn up by Kirsi Mikkola. Lapland Centre of Expertise for the Experience Industry. Lapland's Natura Guide, 2005 Lapland - Arctic, creative success Lapland's Regional Programme Regional Council of Lapland Lapland - Arctic, creative success Lapland's regional plan Regional Council of Lapland Lapland economic review 1/2010. Regional Council of Lapland Action Plan 2011 of the Lapland Centre of Expertise for the Experience Industry. Lapland Centre of Expertise for the Experience Industry. Tourism marketing benchmarking survey Regional Council of Lapland, December Commissioned survey, Nordicmarketing GmbH. Tourism Satellite Account 2007, April Statistics Finland. Tourism sector report 9/2009. Harju-Autti Anneli. Publications of the Ministry of Employment and the Economy, Tourism sector report 9/2010. Harju-Autti Anneli. Publications of the Ministry of Employment and the Economy, Economic trends in tourism 2/2010. Economic review, Regional Council of Lapland. Finnish Tourist Board: Trends in tourism, December February Finnish Tourist Board: Marketing. Finnish Tourist Board: Border interview survey Finnish Tourist Board and Statistics Finland. Finnish Tourist Board: Border interview survey Finnish Tourist Board and Statistics Finland. Finnish Tourist Board: Finnish Tourist Board's product themes. Province of Norrbotten Facts and perspective. Foreign trade in services in Preliminary data, Statistics Finland. Foreign trade surplus in services fell in 2009, 10 June Pine, Joseph Beyond Experiences: What the Transformation Economy Means for Tourism. Speech at Lapland Tourism Parliament in Rovaniemi on 30 September Pollock, Anna Tourism: Future Challenges & Potential Responses. Speech at Lapland Tourism Parliament in Rovaniemi on 1 October Guidelines for fair travellers, Association for Fair Travel 21 June Resourceful Region Finnmark's regional development programme. 72

73 Development of tourism in Rovaniemi and its effect on regional economy. City of Rovaniemi, Tourism Manager Tuula Rintala-Gardin Statistics about Finnmark. Finland's ski resorts, parameters Finnish Ski Resorts Association, Competitor analysis of the Finnish tourism market - Abstract. Studies of the Finnish Tourist Board, 16 April Finland's tourism strategy Four good reasons to promote the development of tourism sectors. Web publication 4 June Reports of the Ministry of Employment and the Economy, Effects of reducing tax-like payments in the tourism trade on the profitability and growth of businesses. Finnish Consulting Group, 8 June Ministry of Employment and the Economy 1412-D2550. The Complete Guide to Volunteer Tourism. Travelling light: Why the UK s biggest companies are seeking alternatives for flying? World Wildlife Fund, travelling_light/ Finland Futures Research Centre, University of Turku. Tourism as work. Tourism as Work Research Project, Academy of Finland University of Lapland & Finnish Forest Research Institute. Turismi_tyona.iw3 UNWTO World Tourism Barometer. Volume 8, No. 3, October Vesterinen, Pirkko-Liisa Diginatives challenge the working life, 26 November JTO School of Management. 73

74 Further information: Regional Council of Lapland PL 8056, Hallituskatu 20 B Rovaniemi Tel (0) Fax +358-(0) firstname.surname@lapinliitto.fi 74