DEVELOPMENT OF THE CROSS-BORDER TOURISM, BY THE CASE WHITE ROAD PROJECT.

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1 DEVELOPMENT OF THE CROSS-BORDER TOURISM, BY THE MEANS OF THE INTERNET MARKETING, CASE WHITE ROAD PROJECT. Naeza Petrova Kajaani University of Applie Sciences School of Tourism Degree Programme in Tourism Spring 2013

2 ABSTRACT This research work was aime to result in relevant an vali conclusions as well as recommenations, concerning the cross-borer tourism collaboration, through the internet marketing tool in the White Roa area. This request of cross-borer cooperation extension was base on the possibilities an eman of the tourism evelopment in the region. The founation of the work was The Karelia ENPI CBC Programme an White Roa project. Thus, the main focus was mae on the Internet Marketing issue, as the moern tool to reach the foreign market an evelop a tourism network in the regions of Northern Finlan an the Republic of Karelia. I, Naeza Petrova, the stuent of Kajaani University of Applie Sciences have worke for the White Roa project as a research assistant. The first section of this work investigates the theoretical framework, which is Internet Marketing, followe by the analyses of the current tourism situation in the with an emphasis on 6 regions, namely: Loukhi, Kostomuksha, Kalevala, Segezha, Kem an Belomorsk. Furthermore, the research stages are explaine in etail, particularly, supply an Internet potential analyses. The outcome of these analyses reveals the current tourism an Internet Marketing potential of the tourism organizations in the RK. The theoretical framework presents several theories that mae the work vali an relevant, such as 10 Cs of Marketing for the moern economy (Charlesworth, 2007). During the work, 40 tourism organizations have been investigate. Conclusive part of the whole work represents the main outcomes of the research an analyses as well as recommenations. In orer to create a network of the tourism organizations in the White Roa area, the web-pages of the companies in the Republic of Karelia are neee to be improve, in orer to reach the foreign market. Moreover, infrastructure has to be raise to the higher level in orer to create strong conitions for the tourism cooperation evelopment. Contact information: naia.petrova08@gmail.com Phone number:

3 TABLE OF CONTENTS 1. INTRODUCTION Ten Cs of Marketing Level of the companies information support RESEARCH AND ANALYSES Tourism organizations supplies Comparison of the Web-Sites on the Finish an Russian sie CONCLUSION APPENDIX: Database of all the investigate tourism organizations... 1

4 1 1. INTRODUCTION The founation of the following work was the research question: what are the ifferences in the internet marketing, especially web-pages, between Russian an Finnish organizations relate to tourism in the White Roa Project area? The objective of the project work was to analyze the current tourism situation in the White Roa Area, namely, Northern part of the Republic of Karelia an Northern Finlan, particularly, Vuokatti, Ruka-Kuusamo an Wil Taiga. Using the knowlege about the tourism market, the number an operations of various organizations, such as tour companies, authorities, as well as schools working in the fiel of tourism, it woul become possible to buil up the network between 2 neighboring countries, using their potential for the joint proucts evelopment. Furthermore, the secon aim was to analyze the companies existing cooperation, Internet Marketing, especially web-pages, in White Roa Project Area, in orer to be able to compare their marketing strategies as well as websites content, the ifference in which can be connecte to Finnish an Russian cultural peculiarities as well as social nees an wants. An inspiration iea of the following work was taken from the Cross-borer project, which starte in the en of November 2012 an will finish in the en of the year Mainly, following work was focusing only on the several regions: Russian sie Loukhi Kalevala Kostomuksha Segezha Kem Belomorsk Finish sie Vuokatti Ruka-Kuusamo Wil Taiga There are several partners, who are taking an inalienable part in the project, namely: 1) Kajaani University of Applie Sciences 2) Kainuu Vocational College 3) Kuhmo an Suomussalmi (Iän Taiga) 4) Vuokatti Oy

5 2 5) Naturpolis (Kuusamo) 6) Voigt travel (The Netherlans) 7) Belomorsk Metropolitan Region 8) Loukhi Metropolitan 9) Kalevala National region 10) Kem Metropolitan Region 11) Segezha Metropolitan region 12) Kostamuksha Urban District The lea partner is the Kajaani University of Applie Sciences. In the project following issues about the companies an their internet marketing have been analyze: 1. The number of the companies in ifferent istricts From each company following information will be foun: - Name - Web aress - Location - Main business fiel (accommoation (number of bes), foo services, tour operators, programme services) 2. Internet marketing - Languages - Form use (Vkontakte, Facebook, Webpage, Pinterest, etc.) The following work inclue theoretical chapters as well as a case stuy, which take roots into the tourism in Karelia an cross-borer collaboration with the Northern Finlan. As Internet Marketing was the base of the following work, it was essential to buil up an effective an urable theoretical base. First of all, the meaning of the Internet Marketing an all of its components was efine, in orer to gain insight into the internet marketing framework an be able to make valuable comparison an conclusions. In the following work the web-sites of the tourism organizations in the Northern Karelia have been analyze an compare with similar ones in Northern Finlan, using the theoretical backgroun an moels that have been reflecte in the following chapter. Therefore, it is of no small importance to unerstan all the marketing peculiarities as well as strategies. Firstly, it was necessary to gain insight

6 3 into the each region s features, particularly, in relation to tourism, so it woul be easier to make the potential analyses. During the work, current tourism situation in the Republic of Karelia has been analyze as well as transport network an accommoation facilities. Moreover, all the tourism organizations have been examine an the unite atabase has been create, in orer to make the comparison simple an convenient. As the main focus of the work was Internet Marketing, web-pages of the tourism organizations have been analyze. 1.1 Ten Cs of Marketing Ten Cs of Marketing moel was chosen for the analyses as it provies an effective framework for marketers assessing for the moern igital market-scape from both an internal an external perspective. Following moel can be use as a tool to the creation of the successful Internet Marketing, as it gives a possibility to epth analyses an investigation. 2. Corporate Culture 5. Communica tions 6. Consistency 7. Creative Content 8. Customisation 3. Convenience 9. Coorination 4. Competition 1. Customer 10. Control Pic.1: 10 Cs of Marketing for the moern economy. (Gay R., Charlesworth A., 2007.) Firstly, the customer stans in the centre, as he is the main focus of any marketing riven organization. All the marketing activities shoul be esigne so that they coul achieve high levels of customer satisfaction an the Internet makes the client even more powerful an emaning with

7 4 such tools like search engine, possibility for price comparison as well as multi-channel offers. The Internet Interactivity allows faster customer feeback, an upating of content an other web-site features. On the other han, such writers like Win (2002) have observe a new hybri consumer emerging who wants to call, click an visit organizations. In other wors, he wants everything the best of the physical an virtual worl. Web-sites have to be esigne, taking into the consieration all the nees of ifferent customers (Charlesworth, 2007). Seconly, corporate culture stans for all the internet base operations an all the other issues connecte with it, such as risks, IT architecture, front an back office systems as well as partnerships. The most important thing is the culture of continual customer centric innovations. The growth of the technological improvements requires constant an costly investments in new series an features, as without them the online operation becomes stale an fails to meet the customer expectations. All the organizations can be ivie into 3 groups, such as Grasp the Nettle visionary firm that exploit the potential of the igital tools to achieve sustainable competitive avantage, Follow the Leaer the cautious firm which prefer to see first how the market reacts an finally, a Stan Firm, that resist the aoption of the Internet within its marketing function (Charlesworth, 2007). Convenience plays an important role, as nowaays, the Internet provies maximum convenience for its users. This coul be the easy booking system, upating of prices, e-catalogues an possibilities for faster communication with the clients. The majority of writers on strategic Internet marketing offer a limite time an space to any competitive analysis beyon Porter s revise Five Forces (2001). Online Marketers are in a threat, however as Charlesworth (2007) observe in the new economy, that technology has mae them fast an unpreictable. There are a number of threats that online marketers can face, for instance, new online entrants from overseas as well as traitional competitors moving online. Another essential aspect is the communication, which implies the potential interactions an its outcomes between the sener an receiver that coul be one for instance, through the marketing. It coul be notice that there is a majority of web-sites which are using certain chats, where company workers have a possibility to answer all the customers questions online. Together with the consistency, the customer becomes ensure that the company s actions are logical an reliable (Charlesworth, 2007)

8 5 Furthermore, the content of any web-page shoul be creative enough as well as informative, topical, stimulating an relevant to the nees of the target market in orer to make customers return there again an again as well as use web-site possibilities. To promote proucts an services online, the actual prouct creator must have a Web-site where shoul be provie a variety of information about proucts or services, an the means by which the consumer can place an pay for the orer. Thus, there is a nee to make creative an innovative use of information employing both technology an intuition to tease out trens an opportunities (Charlesworth, 2007) In aition, customization is all about the personalize proucts an services. An last but not least, is a coorination an control, which is an actual tool to measure any online activity through the special analytics. One of those tools is CRM customer relationship management (Charlesworth, 2007) 1.2 Level of the companies information support The ynamic evelopment of the social meia, the public value of which is currently rapily growing, is closely linke with the competitiveness issue. In orer to be able to iffer from other companies in the market, the tourism organization shoul use moern ways of promoting their prouct. Juging from the works of various scientists, such as Miletsky, Jason, Kotler, Smith, it became evient that Internet Marketing an the web-site itself is an inevitable part of the marketing strategy of any company. Base on the works of Smolokurov (2009) the table above has been create, that is showing the level of the companies information support, which inclues: the

9 6 availability of moern office equipment, high-quality software, which allows to serve clients without elays, connection to the booking systems, high-quality telephone communication an broaban Internet access. Therefore, eviently, the web-site of the company is an essential part of the whole marketing. Moreover, Smolokurov has pointe out the main stanars of how the web-page of the company shoul be in orer to successfully eliver all the necessary information to the potential clients, as well as to be competitive in marketing. Thus, this table shows the best correlation with the 10 Cs of Marketing for the moern economy (Gay R., Charlesworth A., 2007) an will be use in the main analyses. In case if the approach is not structure, it is most likely that the elivere aims an scope of the web-site will be incomplete. The price to be pai for proucing a poor website is getting higher an higher in terms of misse opportunities, lost revenues, amage reputations an so on. The Web nowaays is a busy place, with lots of competition an web users have ever-rising expectations an can very quickly move to an alternative web-page if satisfaction or interest is not speeily an substantially achieve. The structure can be also calle methoology, which is an organize, ocumente set of proceures an guielines. Goo esign methoology must inclue certain general features, which are reflecte in the picture 2 (Lawrence, 2007). These are: usability, which is the ease of use of a web site; purpose, which refers to the main aim that the web-site was create for an finally, meeting all the aesthetic stanars. Pic.2: Website esign: the three pillars. (Lawrence, 2007.) One of the examples of the web-site analyses, using the above reflecte moels, can be an American multinational computer technology corporation Dell Inc. Baumann (2009), ha evaluate the webpage of the company by its information, navigation, presentation esign, visibility, traffic generation as well as accessibility. He is mentioning that the site visitors nee to quickly fin what they are looking for on the web-site of a company, moreover, it is essential to make customers feel comfortable an entrap them to purchase the prouct. Furthermore, Dell web-page offers the homepage guests the possibility to interact with the company an other customers, for instant, by reaing an writing customer ratings about their proucts or writing in blogs. Obviously, Dell Inc. is

10 7 making use of the CRM tool. The marketing tool is further enhance by even having a chance to inform other people via about a prouct or a service one foun on Dell s homepage. Baumann (2009) has also escribe the link between the web-site quality an companies competitiveness, as it is an essential part of the operations of any organization. Therefore, it coul be conclue, that the moels that are going to be use in the following work are functioning an the majority of the organizations are pursuing that rules in orer to make their Internet Marketing effective in toay s worl of moern technologies. In the following work the web-sites of the tourism organizations in the Northern Karelia will be analyze an compare with similar ones in Northern Finlan, using the theoretical backgroun an moels that have been reflecte in the following chapter. Therefore, it is of no small importance to unerstan all the marketing peculiarities as well as strategies. 2. RESEARCH AND ANALYSES To begin with, it is necessary to escribe the metho of collecting the information from the tourism organizations, as it was an essential part of the research an all the conclusions were mae on the assumption of the foune information. An interview was one partly through an telephone, as it is a relatively cheap tool in comparison with other methos, an moreover, it is an efficient an fast metho of collecting the neee information. Altogether, 40 tourism organizations have been investigate in the regions of: Kalevala, Kem, Loukhi, Belomorsk, Segezha an Kostomuksha. 2.1 Tourism organizations supplies After the unite atabase of all the tourism organizations was mae, that is presente in the Appenix part, an all the necessary information ha been collecte, using such ata collecting methos, as telephone an interviews, it is time to make the potential analyses of all the supplies an services, that those tourism entities are able to offer. Before making the actual analyses, the main keywors can be liste, namely: fishing, hunting, cottages, as mainly all the tourism organizations are offering following services. As it was state in the main escription of the tourism potential of the it is becoming obvious, that

11 8 most of the tourism organizations are mile size companies, who are focusing on the active tourism more than any other kin, as it is more afforable an economical, as the nature itself is offering all the possibilities for it. On the other sie, there are also companies, who are offering various attractive an fascinating excursions all aroun especially in the regions of: Loukhi, Kalevala, Kostomuksha, Segezha, Kem an Belomorsk. Fishing an hunting are the most popular activities, which are of a high eman in the Republic of Karelia, juging from the offers of the various tourism organizations in the RK an a tourist eman. In our moern an fast pace city lives people are seeking for some remote places of rest. Thus, an exchange of civilization for the unity with nature, hunting an fishing in Karelia - this is what neee. Diversity of rivers, lakes an fauna of Karelia will not leave anyone inifferent, an a large number of game an fish will make hunting an fishing in Karelia iverse an fascinating. Moreover, companies who are offering this kin of active tourism are fully prepare for hosting international an local tourists, in other wors, they are able to offer all the neee supplies, starting from the waterproof suit an ening with a fishing-ro. In orer to make the staying more interesting an memorable as well as make it iffer from other tourism firms, they are trying to ilute the program an a something new. For instant, they can take you to the fishing or hunting place with a snowmobile, or jeep or other kin of safari transport. As for accommoation, the perfect aition to the whole fishing trip will be staying in the Log Hut or a small cottage on the lakesie or a riversie, which will also contribute to the staying extension: the most interesting thing to know about those log huts is that there are no unnecessary staff, just what one will nee for sleeping an making foo, like simple wooen be, a campfire an a kettle. However, there are also companies, who are offering various accommoation facilities. These are: cottages, peasant s log huts, guest houses, tents an hotels. These can be Hotels themselves offering accommoation, or tourism companies, who are offering aitional accommoation to various tours, like fishing or hunting as well as excursions. With regar to the hotels Star system. Accoring to the Russian agency of legal an juicial information, only about 50 hotels throughout the country can qualify for the category of *** up to *****. In fact, to visualize what the hotel category ***** is, it is possible to visit the Moscow hotel «Baltschug Kempinski», «Metropol», «Savoy», «Tverskaya Palace hotel Marco Polo», «Olympic Penta Renaissance» - they fully correspon to the worl stanar *****. All the rest oes not comply with the strict requirements of the classification. Therefore they can be classifie in other categories of accommoation facilities, the so - calle guest houses. Their level correspons to 1-3 stars, but

12 9 these are not Star hotels. Taking into account the all the hotels are claiming to be 2-3 Star Hotels, however there is no official Star system applying to them in comparison with other countries, such as Switzerlan or Spain. In Finlan there is also no official "star" system applying to hotels an cottages, therefore, their classification in the catalogues of tour operators is relative. Solution to the following situation might be alternative to stars classification system, or expaning it with an integration of new symbols. At the present time in the worl there are about 30 national categorizing systems of accommoation facilities with ifferent graient symbols. In aition to the stars, there are also "key", "crown", points, an even "iamons". As shows the experience of many countries, the use of specific mark of compliance helps the various social groups to choose a hotel for their nees. If the stars inicate the presence in the accommoation any kin of the require facilities, the alternative sign can guarantee the satisfaction of certain essential nees without overpayment for unnecessary luxury. This coul be a suitable iea for the various accommoation facilities in the Republic of Karelia. Regaring eucational organizations, it is necessary to pay attention on the Belomorsk centre of tourism an local history (Belomorsk centre of tourism an local history, 2013). It is an eucational complex in the forest area that inclues: a one-story brick builing with lecture-rooms an utility rooms, eucational-training groun with a Playgroun for football, volleyball an basketball, camp is equippe with a camp-fire an a place for installation of tents. There are equippe classrooms of tourism an stuy of local lore as well as sport orientation in the centre an a class-museum «Pomorskaya izba». The institution has all the necessary tourist an sports equipment, methoical literature, moern office equipment to conuct eucational activities. At the expense of extrabugetary funs an grant support the material base is being constantly upate an renewe. Special attention in the work is given to the implementation of the national-regional component through the sections of the eucational teachers programs, excursions an holiays in the interior of the class-museum Pomorskaya izba. The lifestyle of the inigenous population - wellers an Karels has gaine the most interest. The exposition of the class-museum «Pomorskaya izba» is constantly upate with the exhibits from the expeitions, allowing stuents to follow the original traitions of the native lan (Belomorsk centre of tourism an local history, 2013). Station of tourism, being a methoological centre of tourism an a local lore stuy in Belomorsk region, coorinates an provies information as well as methoological assistance to eucational institutions of the city an the region on priority irections of evelopment, eucation an

13 10 aitional eucation of chilren, prepares an replicates methoical collections, evelopments an recommenations (Belomorsk centre of tourism an local history, 2013). Stuents receive sport level an rank of the Young tourist of Russia, Tourist of Russia, instructor of youth tourism. Grauates have the leaership an organizational skills, they are emane in tourist firms, in chilren's summer camps. They are able to run tourist complexes at the place of stuy in the Universities; in aition, they are stuying in the higher eucational establishments of Emergency Control Ministry of Russia. Seconly, Basin Council of the North Karelian Coast is another organization worth paying attention in the way of the tourism an region evelopment in the Republic of Karelia (Basin Council of the North Karelian Coast, 2013). It is the public organization establishe in The purposes of creation an activities of the organization are public promotion of sustainable evelopment an environmental protection of the North of Karelia. The main objectives of the organization are: 1. Creation of favourable conitions for unification of persons, intereste in sustainable evelopment of the North-Karelian coast; 2. Support of the iniviuals an organizations performing activities in the fiel of sustainable evelopment in the region of the North-Karelian coast; 3. Improving communication an information exchange between persons an organizations involve in the activities of the fiel of sustainable evelopment in the region of the North- Karelian coast; 4. Implementation of programs an projects aime at achieving the goals an objectives of the sustainable evelopment in the Northern regions of the Republic of Karelia; 5. Improvement of environmental conitions of the basin of the North-Karelian coast; 6. Assistance to institutions participating in the eucational process in the fiel of sustainable evelopment an environmental protection (Basin Council of the North Karelian Coast, 2013).

14 11 Finally, there is a certain number of tourism companies, who are offering rich an fascinating trips aroun the in particular, those who are operating in the investigate regions, such as: Loukhi, Kalevala, Kostomuksha, Segezha, Kem an Belomorsk. For example, Tour Company "Prichal", that is organizing tours for foreign an Russian tourists in Kem region of the Republic of Karelia an the Arkhangelsk region (Tour Company Prichal, 2008). They are offering excursions, where tourists can get acquainte with the local Pomor culture, visit an ancient city centre of Kem an the Uspensky Catheral, which is an architectural monument, which is consiere to be as one of the pearls in the necklace of wooen architecture of the Russian North. They are inviting tourists to take part in the journeys: «jump in the past» on the archipelago in the «natural Worl», «Worl of spirits», «the Worl of the ea.» An of course, to iscover the Solovetsky archipelago, as it is calle, Solovki - the worl monument of history, religion, culture an nature. There is nothing alike in the whole worl, the place is Holy, natural Russian. In aition, tourists can take part in the journey to the Solovetsky Islans, which is an opportunity to get back to the basics, to think about ones place in this worl (Tour Company Prichal, 2008). One more instance is a network of tour agencies "Go to Holiays". They are proviing various tours an excursions throughout an are appearing to be an intermeiary between the tour company an a client. They are booking the hotel, transfer, flight, bus or train tickets, transfer as well as foo an beverage. In this case an example of a tour company, offering those tours irectly, is Neva. These are actual combine tour package, which inclues in itself: transportation, insurance, accommoation, transfer to accommoation as well as certain number of excursions an foo an beverage. After the examination an investigation it is possible to state some more aitional aspects that unite all the tourism organizations in the Republic of Karelia. Especially, that all the companies are working an offering their services all year roun, they are able to offer summer as well as winter activities, which makes them more practical for tourists as well as gives them certain competitive avantages. Moreover, as it was alreay state before, the majority of companies are concentrating on fishing an hunting. However, an important thing is that their offers, the actual tour package also inclue the accommoation an sometimes even transfer from the train station or an airport to the estination.

15 12 Accoring to the analyses of the unite atabase of all the tourism relate organizations as well as interviews, it is necessary to mention one more uniting aspect. Particularly, the size an the market orientation. In other wors, the companies are focusing more on the local market, rather than International. This is mostly escene from the company s size, as the majority of investigate companies are satisfie with the current profit an inflow of local tourists, so they o not have a esire for expaning. Moreover, another reason coul be the low level of evelopment of the infrastructure in the region, such as poor quality of roas as well as accommoation. However, juging from the interviewing, 75% of all the companies in all the investigate regions of the Republic of Karelia are willing to cooperate with International partners as well as eveloping an being a part of the tourism organizations network, the key wors in the answers to the interview question about the participation in the cooperation were: unoubtely, of course, on certain conitions, willing to expan. Which means they woul like to expan an grow, but on mutually beneficial terms, as it was mentione by the manager of one of the interviewe companies. Furthermore, 4 companies have alreay participate in the White Roa Project seminars an were aware of the project programme. 2.2 Comparison of the Web-Sites on the Finish an Russian sie The aim of the work was to evelop measures for improving the use of Internet Resources, raising the attractiveness of tourist proucts of the Republic of Karelia. To achieve this goal it is necessary to solve the following tasks: consier the peculiarities of use of the Internet in the sphere of tourism; to conuct an analysis of tourist potential of the Republic of Karelia; to give recommenations on improving the use of Internet Resources for raising the attractiveness of tourist proucts of Karelia, base on the theoretical Internet Marketing backgroun. The esign of the Web-Site of any tourism company must take into account the trail of the criteria for the work of the visitor: Person must be able to quickly fin the esire information; Person must navigate, what information he ha alreay seen, an which not yet; Person shoul be able to choose the information on appropriate topics. The next stage of improving the use of Internet-technologies is of an avertising campaign of the web-site in the Internet, focuse on the potential auience of a tourism company. Site promotion an avertising in the Internet is carrie out through mailing lists, search engines, banners an text as, ratings, exchange links, news services, support of content-projects an PR.

16 13 With the participation in the competition, one of the most important tools is the quality of the information. Tourists will choose the host centres mainly on the basis of the information obtaine. The strategy shoul be aime at organization of such a search mechanism, so that the customer ha an opportunity to choose a route an plan the trip. The publication of online brochures with escriptions of popular routes can serve to stimulate the customer to buy a tour. Web-site must be reaable for 99% of the auience; attractive for 95% of the auience; make an impression on the 80% of the auience; surprise 30% of the auience. The main thing in the esign of the site of the tourist firm, as well as any information resource, is a fast orientation of the reaer in the flow of information. When eveloping ways of using Internet-technologies, namely Web-site, it shoul be note that, since its formation it is necessary to accompany an to upate this resource. The main criteria of evaluation of tourist servers is irectly base on the 10Cs of Marketing for the moern economy (Charlesworth, 2007): informative - the volume of the submitte information, the etail of the ata, use of photo - an vieo; navigation - structuring of information, ease of use, Web-site; technical capacity - availability of information books, the possibility to book tours, air tickets, hotels; esign of a site; language; loaing spee of the site an its ivisions; regularity of upating of the information itself. In aition, the three pillars of the website esign (Lawrence, 2007) ha been taken into consieration as an auxiliary tool for the analyses. First of all, the web-sites of the tourism organizations in the Republic of Karelia will be investigate. To begin with, it is necessary to mention, that half of the web-pages of the investigate tourism organizations in such regions as Loukhi, Kalevala, Kostomuksha, Segezha, Kem, an Belomorsk are in Russian language, which narrows the possibilities for reaching foreign tourists, as all the information is in local language. Example coul be such organizations as, LLC "Keret Tour" (LLC Keret Tour, 2013) in Loukhi region an LLC "Rick" (LLC Rick, 2013), which is offering accommoation as well as fishing an hunting. Another half of the examine web-sites are offering information in English, such as JSC "Polar circle (JSC Polar Circle, 2013), having conitions for eco-tourism: ice-iving, summer iving, chilren biological program as well as accommoation, an 3 web-sites have information available in Finnish, these are Village Voinitsa, which is offering accommoation an certain type of excursions, incluing possibilities for active tourism; tourism agency Golen Dragon (Tourism agency Golen Dragon, 2013), which is offering accommoation facilities as well as tours in Kostomuksha region; tourism agency Kotiranta (Tourism agency Kotiranta, 2013), who are offering such services as booking accommoation, especially cottages as well as one an several ay tours to Finlan an excursions throughout Karelia.

17 14 Seconly, another observation is that there are several tourism organizations that o not have their own web-site; the information on them was foun through the search engine an seconary websites. Namely, LLC "Nereis", that is focusing on the tourism evelopment in the region as well as technical sports an outoor activities; Network of tour agencies "Go to Holiays", offering tours an Excursions through the tour companies, that are operating all aroun the worl as well as offering special tours in Karelia; Tourism agency "KRASS", proviing tours to Finlan, Kizhi, Kivach an provie services such as, visas, insurance, provision of a minibus For Tranzit (13 seats), booking air an train tickets. In other wors, these companies are appearing as Stan Firms that oppose the aoption of the Internet within its marketing function. Furthermore, concerning the navigation, there is plenty of aspects that unite all the examine websites. All the tourism organizations necessarily have their own escription, particularly, what is the company all about, what services as well as latest offers o they have an latest news. All the websites are informative an structure, espite the fact that they are currently upate; the ata of the last renovation can be foun at the bottom of the page. There is a site-menu, where the tourist can fin all the necessary information about certain matters. For instant, there are prices available an escription of the accommoation facilities, such as the size of the berooms in the cottages as well as prices. This enables the tourists to have a possibility for price comparison between a vast number of analogous offers. In aition, in orer to influence the visual perception, various photos, vieos an pictures both from the tourists an owners are use, which helps tourists to form a certain picture about the company an their offers. For example, on the web-site of the LLC "Vector" (LLC Vector, 2013) in Loukhi, the tourist base, locate in the picturesque surrounings of the lake Pjaozero, the tourist can fin pictures of the offere accommoation, so he coul have an image of the overall conitions. There are also brochures presente, that the tourist can easily print out, however, just a few of the web-sites offer them. One of the most important things is the contact information, which guarantees the successful communication between the sener an receiver, as well as maps where the route of how to get to the certain estination is escribe. Tourists also have a possibility to sen a message irectly from the web-site. In aition, it was important to know, how the tourists get to know about the tourism organizations that have been foun an investigate uring the research. Juging from the answers of the companies representatives, it became clear, that in 80% of the cases it is 50 to 50, which means that the main information source are friens & relatives an Internet. However, several interviewees mentione about the peoples istrust to the Internet sources, because of the numerous cases of swinles. Such writers like Win (2002) have observe a new hybri consumer, who prefer to

18 15 call, click an visit organizations. In other wors, he wants something visible an tangible, like most of the Russian an foreign tourists nowaays. Therefore, the certain number of tourism organizations are trying to avoi relying on the Internet source an invest in it. Moreover, the small size companies have their own forme loyal customers, who are aware of the services an coming back again an again, thus, these organizations are trying to keep with them. When comparing the web-sites of the tourism organizations in the Republic of Karelia with ones in Finlan, it is necessary to mention the company s orientation, as the esign of the web-pages is also epening on that. If most of the Russian tourism organizations are of small size an focusing more on local market, Finnish tourism organizations are internationally focuse, this is also shown by the language of the web-pages, which is in Finnish, English, German an Russian. The actual set of the web-pages are all the same: web-site menu for a better an easier navigation, escription of the facilities an services offere, as well as prices, maps, photographs, routes, contact information. However, there is a certain number of ifferences. Firstly, is a network system, which is clearly shown on the web-site of Kuhmo an Suomussalmi - Iän Taiga (Wil Taiga, 2013). In particular, on their web-site they are reflecting all the information concerning 5 regions, which are Kuhmo, Suomussalmi, Hossa, Ukkohalla an Vuokatti. This web-site is an original network of all the cooperating tourism organizations that are somehow working in the following regions, as well as accommoation facilities an even such services as restaurants an equipment rentals. There, the tourist is able to fin the brochures, which can give more information about Kainuu region as well as Wil Taiga, as well as photographs an vieos for a better visual perception. Moreover, this online network hols the survey for measuring the customer satisfaction, which is one of the efficient ways to improve the customer service. In other wors, they are coorinating an controlling their online activity, with a use of the CRM tool, unlike the tourism organizations in the where CRM oes not go beyon phone an interaction. However, the navigation an general structure of the web-sites are similar, except the language variety, tourism organizations network system an customer relationship management. Hence, it woul be convenient to create the similar atabase of all the tourism organizations in the White Roa area, especially if juging from the interview, 75% of the companies are willing to be part of the chain. Moreover, in when comparing web-sites of the tourism relate organizations in the it is also becoming visible that there is still lack of the new technologies introuction. Such as mobile phone applications an networking system. The majority of the companies are not reaching the European stanars an are operating more on the local market:

19 16 even though they are willing to expan, it is a step that most of them are fearful to o, but with the help of the cooperation an proper impact, it is possible to change the situation. 1.1 Companies classification After the research of the tourism organizations supplies an Internet marketing it became possible an logical to classify all of them into several groups, by certain characteristics. First of all, companies can be ivie into 3 groups, namely: accommoation, transportation an tourism. Further the ivision will be mae, taking into account their location, size, tourism potential an Internet Marketing. To begin with, the following statistics shown below inicate the number of various companies in the regions of the namely: Loukhi, Kostomuksha, Segezha, Karelia, Kem an Belomorsk. Apparently, all the tourism organizations have been ivie by offere supplies an scope of activity, particularly: accommoation, tourism, tourism evelopment as well as transportation. Tourism Organizations Accommoation Tourism Tourism evelopment Transportation 5 % 7 % 37 % 51 % After the examination of the statistics it coul be seen, that the majority of all the tourism relate companies in investigate regions are offering accommoation an various tourism activities, which was escribe in more etails in the chapter of the supply analysis. It is necessary to mention, that some companies, who are focusing on tourism activities only, are also offering a certain kin of accommoation, such as guest houses or cottages. However, they are not part of the accommoation group, as it is their seconary supply that belongs to the company an the most

20 17 of the focus is mae on active tourism as well as excursions. It is visible, that there is only 5% of the companies, who are focusing on transportation, which is a small amount on the one han, an appropriate on the other: in first case, because there are 6 regions of the most interest in the White Roa project framework an these companies are covering most of their territory, however, in the secon case these are small companies, an the amount coul count several more companies, or one company, that woul cover the whole area of the for instant, similar to Matkahuolto or Pohjolanmatka in Finlan, thus, this coul be the way for improvement, as this woul simplify the process of reaching certain tourist estinations. Finally, 7% are focusing on the tourism evelopment, which is the centre of tourism an local history in Belomorsk, Basin Council of the North Karelian Coast an LLC "Nereis" in Loukhi, who are focusing on the evelopment in the region of technical sports an outoor activities. Nextly, the companies have been ivie by the regions, to be specific, the number of the tourism relate organizations in each region that can be seen in the following iagram. Tourism Organizations Loukhi Kalevala Belomorsk Kostomuksha Segezha Kem 5 % 12 % 36 % 17 % 18 % 12 % Juging from the shown statistics, it is becoming obvious, that most of the tourism organizations are locate in Loukhi, Belomorsk an Kostomuksha regions. This can be interprete by the location: Loukhi has a close position to the Paanajarvi National Park, White Sea, other tourism attractions as well as transportation connection - highway from Murmansk to Saint-Petersburg is lying through this city as well as a railway; Belomorsk is famous for its monument artifacts, such as White Sea petroglyphs an closeness to Solovetsky Islans; Kostomuksha is close to the Finnish borer, an have possibilities for the cross-borer collaboration, for instant it takes about 2 hours to get from

21 18 Kajaani to there (137 km), moreover this city has the secon biggest population number after Segezha thousan. As part of the main objective was to analyze the Internet Marketing in each region, following iagram was mae. Statistics below show the percentage of the companies whose web-sites are meeting the stanars of the Internet Marketing, base on the 10 Cs of Marketing for the moern economy (Charlesworth, 2007). This means, that the web-sites are informative, interactive, up-toate, visualize, communicative, simple to navigate an are in several languages. 78 % of the companies in Loukhi have their own web-site, which are meeting all the stanars, escribe in the theoretical part, an 22% o not. However, even though the web-sites are appropriate, there is still a ifference, concerning languages. Within 78% of all the companies, 27% are in Russian an English an other 51% of the web-pages are only in Russian, which can be explaine by the companies focus on the local market. 100% of all the companies in Kalevala have their own web-sites, which are meeting the mentione above stanars; nevertheless, there is a language ifference. In particular, 40% of them are in Russian, English as well as Finnish, which can be explaine by the closeness to the Finnish Borer an interrogation with the Finnish tourists, an 60% of them are only in Russian. 57% of all the tourism organizations in Belomorsk have their own web-sites; however, all of these web-pages are in Russian Language. 71% of all the tourism companies in Kostomuksha are using Internet as the Marketing tool, moreover, it is necessary to notice their web-pages are in Russian, Finnish an English, which can be interprete by the location, which is near the Finnish borer, espite the fact, that the cross-borer tourism there has being an is eveloping steaily. 80% of the tourism organizations in Segezha are actively using Internet; however, all of their websites are in Russian language. Last, but not least: all of the tourism companies in Kem have their own Internet Source; moreover, all of them are in Russian an English. All in all, when taking into consieration the statistics shown above, it is possible to unite all this ata an count how many of the companies in the investigate regions are meeting the main requirements. Only companies, who have their web-pages translate in English an Finnish, have been counte. Thus, only 43% of all the tourism organizations that have their own web-pages are meeting all the requirements, that were evelope base on the 10 Cs of Marketing for the moern

22 19 economy (Charlesworth, 2007). Therefore, those companies have the most Internet Marketing as well as tourism potential for the further evelopment. 3. CONCLUSION The main intention of this work was to fin out the ifferences in the internet marketing, especially web-pages, between the organizations relate to tourism in the White Roa Project area, as well as to make vali analyses, conclusions an recommenations, that woul contribute to the further research an evelopment of the possible solutions as well as enhancements of the cross-borer collaboration in the project area. The White Roa project at the hea of the Karelia ENPI CBC programme is the beneficiary of this research an acte as a commissioning party. The actual research is base on the possibilities an eman of the tourism evelopment in the region. In aition to that, the outcomes of the investigation an analyses woul contribute to the further cross-borer collaboration evelopment; therefore it woul offer opportunities to achieve the foreign market through the essential Internet Network. The basic prerequisites for the research hanling were provie by the White Roa project. In orer to reach foreign customers an provie them a high tourism service, it is necessary to evelop a strong tourism base, incluing the infrastructure as well as tourism-organizations unite network. Currently, there are a huge number of governmental projects taking place that are focusing on the cross-borer an regional evelopment. Moreover, the natural resources of the Republic of Karelia are very iverse: mil winter an warm summer, a variety of lanscapes, as well as an abunance of opportunities for the evelopment of tourism - fishing, hunting, collecting mushrooms an berries. The presence of mineral springs allows eveloping a resort vacation. Water tourism in the summer, an in winter, snowmobiles, cross-country skiing routes make it possible to evelop ecological tourism on the territory of the Republic throughout the calenar year. The tourism potential of the Republic of Karelia shows that there are recreational resources in all regions. Nature monuments an protecte areas are of special interest an value. They have the greatest cultural an eucational potential. There is no oubt that fishing an hunting tourism in these areas eserve the most careful attention an support of both Republican an municipal levels. The presence of such a rich cultural an natural potential allows the Republic of Karelia to win strong positions in the worl tourist market, however, the reality iffers. Sufficient tourism inustry implies the existence of not only the natural reserves an architectural monuments, but also the

23 20 presence of the cultural inustry. At the present time this sie of the tourism is slightly evelope in the Republic. All possible cultural institutions are concentrate mostly in the capital of Karelia, in other cities besies the houses of culture an history museums; there are no major sporting, theatrical, entertainment institutions. This is a shortcoming in the assessment of the tourist potential of Karelia. The lack of accommoation facilities in recent years is rapily eliminate. There are plenty of projects taking place an therefore, it is believe that in the nearest future the level of hotel service will be raise, which will contribute to the evelopment of the international tourism. Currently, the tourist companies in the Republic of Karelia offer more than hunres of ifferent routes, epening on the egree of comfort an value. Low cost tours with a reuce level of comfort of resiing are not pushing back the Russian tourists wanting to partake of the nature, at the same time for foreign tourists lack of normal conitions of rest is a huge isavantage. Thus, accommoation services have to be raise to the European stanars, in the case of star system the introuction of alternative insignia will help Russian hotels an hostels to attract tourists with the use of national specifics as well as protect them from unpleasant surprises. Another problem that tourism can face in the Republic of Karelia is infrastructure. Therefore, the transport network have been analyse in etail an it became clear that roas shoul be examine separately, as there is a lot of evelopment neee. Integration of the moern technologies has to be one; repairs shoul be conucte; enterprises have to renew their fleet with new machinery as well as equipment. With the regars to the tourism organizations supply analyses, the research showe, that there is a wie majority of the mile size tourism organizations that are willing to expan an be a part of the unite tourism network. However, they are in nee of the motivation push, as they are afrai to try the groun in the International market by themselves at first, moreover, it is necessary that the cooperation will be beneficial for both sies. Furthermore, most of the organizations in the RK are mile size, focusing on active tourism, which is hunting an fishing. With regars to the Internet Marketing the statistics reflecte, that the percentage of the web-sites, that are meeting the main requirements is smaller, than those, who o not. This means, that these companies have their website only in Russian or o not have the web-page at all. Therefore, this makes it ifficult for the company to reach the foreign customer as well as partners. Moreover, it also means that these companies are Stan Firms that resist the aoption of the Internet within its marketing function. It coul also be conclue that it is 50 to 50 in most cases that customers get to know about the

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