Ms Madara Luka
e-mail: [email protected]
The BRANDTour Project
Increasing tourism competitiveness through
private and public sector cooperation
2
Challenge:
Tourism Competitiveness
Unknown as a tourism destination
Poor SME’s competitiveness
Low visibility of the country
3
International Competitiveness of
Latvia as a Tourist Destination
Organizing national stands in international tourism fairs and exhibitions abroad
Marketing and promotional activities
Financial support to SME’s for individual stands and participation in tourism related conferences and seminars abroad
370 SME’s will receive state aid in the planned marketing
activities
82 SME’s will receive financial support in the form
of grants
250 SME’s will receive non-financial support
Private co-financing 4,75 mlnEUR
4
Objectives and implementation
Objectives:
1. To promote Latvia as a sustainable tourism destination
2. To increase tourism SME’s international competitiveness
3. Tourism SME’s entry into new external markets
Implementation:
to provide financial (grants) and non-financial
(marketing) support to tourism SMEs.
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National and Individual Tourism
Stands: Private Sector co-financing
National stands
Private sector co-financing 20%
from transport and
accommodation expenses (will
be changed to 50%)
Individual stands
Private sector co-financing 20%
from all the expenses (will be
changed to 50%) + other
limitations for max costs allowed
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Joint Marketing and
Promotional Activities
Marketing activities of Latvian tourism board, based on the marketing strategy:
• Market analysis, market division into segments
• Organizing exploratory visits (journalists, tourism operators, travel agents, other specialists)
• Advertising campaigns, co-operation with the media (+Internet media)
• Participation in international tourist exhibitions, workshops and seminars
• Co-operation with partners – (embassies, tourism entrepreneurs, national organizations)
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Joint Decision Making Process
for Marketing Activities
Investment and
Development Agency of
Latvia
Ministry of Economics
Advisory Council of the
Investment and
Development Agency of
Latvia
Tourism Committee
of the
National Economy Council
*Representatives of regional and
professional tourism associations
+ REGIONS
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Exploratory Visits:
Cooperation of LIAA and SMEs
Tourism service providers choose to show their products for free
Accommodation sector offers to stay for free or with discount
airBaltic issues free airline tickets
Restaurants offer free meals or discounts
Free of charge entrance tickets to museums and tourism sights
Free tour guides etc.
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Good Practice Example #1:
Puhkus Latis media
Special edition about Latvian
tourism products in the
Estonian newspaper
POSTIMEES
LIAA organize POSTIMMES
media exploratory visit to
Latvia
Program was planned
together with the industry
(TIC and SMEs)
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Good Practice Example #2:
Hungarian tour operaors
Exploratory visit for 9
Hungarian tour operators
Program was planned and
implemented together with:
Hungarian Embassy,
airBaltic,
Hotel chains, Riga and
Jurmala tourism boards,
local tour operators and
SMEs
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Stakeholders and Beneficiaries
Tourism small and medium
enterprises and
institutions
Tourists Destinations
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Resources Needed
Human resources:
10-15 people
Total funding: 20 mlnEUR.
Time scale: 2014 –2023
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Direct Results Achieved
28 partners (associations and SMEs) have received state aid in the planned
marketing activities
21 partners (associations and SMEs) have received financial support in the
form of grants
21 partners (associations and SMEs) have received non-financial support
Private co-financing 275 thousand EUR
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Indirect Results AchievedOVERNIGHT VISITORS IN ACCOMMODATION 2006 - 2017
1,329,890
1,487,3791,555,936
1,113,898
1,311,538
1,584,9961,644,758
1,839,241
2,098,3812,139,393
2,303,643
2,577,338
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
LV
Other
DK
FR
BY
PL
SE
NO
UK
FI
EE
LT
DE
RU
TOTAL
11,9% in 2017 1,78 million foreign visitors
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Indirect Results Achieved (2)
12% in 2017 Predicting over 5 million bed nights in 2018
BED NIGHTS IN ACCOMMODATION
4158418
4950929
0
1000000
2000000
3000000
4000000
5000000
6000000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
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Indirect Results Achieved (3)
TOURISM EXPORT GROWTH IN 2017 7,4%
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Potential for Learning or Transfer
More than 90% of tourism entrepreneurs in the world are small and
medium enterprises
It is costly and difficult to become a successful and well known
tourism sight
With such financial aids or support programs it is possible to boost
SME’s competitiveness
Due to the co-financing factor, the support program ensures that
the SME’s are interested in the results, therefore the support
program is considered to be effective
Project smedia
Thank you!
Questions welcome!