Tourism Development at the German Riviera Mecklenburg
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1 Tourism Development at the German Riviera Mecklenburg What has worked for us
2 Topics for discussion 1. Introducing the destination: Location and character of Kühlungsborn 2. Successful tourism development since 1995: The numbers 3. Focal points of public/private cooperation: A. Product development: Public and private investments in hardware B. Marketing & sales: Coordination of public/private campaigns and events C. Organization: Coordination of public/private institutions D. Funding: Coordination of public/private budgets 4. Innovative marketing for market diversification ( New hats )
3 Location of the German Riviera Mecklenburg Historic / geographic name of the region: Mecklenburgische Ostseeküste Development of the brand German Riviera specifically for foreign markets Brand philosophy: Provocative with a strong maritime focus (not typically German)
4 Ostseebad Kühlungsborn: Heart of the German Riviera 50 km Hansestadt Wismar (UNESCO) Ostseebad Kühlungsborn Ostseeheilbad Heiligendamm Bad Doberan Rostock-Warnemünde
5 Character of Ostseebad Kühlungsborn Coastal city, pop. 8,000; 16.2 km²; 18 town council members; per capita debt 150,- (among lowest in Mecklenburg-Vorpommern!) Tourism-based economy; 18,000 beds (8,000 in hotels, rest in holiday apartments, private accommodation and large camping ground) Long history as tourism destination; very successful for over 100 years No high-rise buildings (max. 5 levels); 130 acre central forest; 400 berth marina; 4 km promenade; 240 m pier; hills of the Kühlung (max. 130 m) Well-established year-round sea side tourism destination with urban flair. Quote Peter Kvistgaard: Kühlungsborn offers a sort of maritime big city life on the coast
6 The numbers: Tourism development since 1995 in Kühlungsborn Capacity (beds) % Arrivals % Overnight stays % Avg. nights per guest 4,4 5,7 +30 % Amazing growth thanks to very successful address of West German market! High percentage of repeaters and strong customer satisfaction Growth in the last ten years primarily in off-season! Tendency towards a year-round destination (55% occupancy of hotel beds) But: Stagnation since 2012 und over-dependence on German market!
7 Public Private Partnership (PPP) in Product Development
8 Overview of product elements and relevance for tourists Long history as a tourism destination (5 generations experience; organic development of infrastructure) - Authenticity! Unspoiled, varied natural environment - Integration with nature! Proximity to metropolitan areas Hamburg (170 km), Berlin (250 km) and Copenhagen (260 km) - Accessibility! Large variety of accommodation for every budget (private rooms, camping, holiday flats, 2 to 5-star hotels) - Affordability! Broad spectrum of private infrastructure - Target group flexibility! Well-maintained, multifaceted public infrastructure - Cleanliness! Town with pop. of 8,000 - critical mass of off-season demand! Employees primarily from region - Identification!
9 PPP in product development: Public sector contributions Immaterial: Content and continuity of development philosophy Conservation of historic topography and character (no highrise buildings; no construction on beach or forest; strict zoning by-laws/ Gestaltungssatzung ). Compromises where needed. Focus on quality in public infrastructure investments (cobble stones instead of asphalt). Inspiration for private investment! Material: Reconstruction and new build of public infrastructure Rebuild exhibition hall, promenade, open air concert gardens, public buildings, streets with lighting, parks, pier, steam train New build marina, sports grounds and halls, schools and kindergarten, public toilets, new residential areas Maintenance: Quality of beach, cleanliness of public facilities High level of investment, funded up to 90% by State M-V/EU!
10 PPP in product development: Private sector contributions Immaterial: Sharing of vision / confidence in town s development Acceptance / constructive adaptation to town s by-laws Willingness to compromise due to belief in business potential Willingness to be inspired by town s good example Patience during public construction work; accessibility problems Material: High level investment in hotels, restaurants, services, etc. Rebuild historic hotels with option for new build of holiday flats on same property (capacity increase; refinancing!) New build large hotel outside historic area (1,200 beds with strong tour operator; 90% occupancy; build brand awareness!) New builds along marina: restaurants, bars, boutiques lend a Mediterranean flair Maintenance: Reinvestment after years! High levels of investment in public and private realms reinforce eachother!
11 Public Private Partnership (PPP) in Marketing & Sales
12 PPP in Marketing & Sales Public sector (centralized) (Municipal marketing organization, TSK GmbH) Total budget: ,- Marketing & sales: approx ,- Private sector (coordinated) (Marketing cooperations, e.g. German Riviera e. V.; est. 2007; 21 members) approx ,- Private sector (fragmented) (Individual hospitality businesses, aggregated) Total rev. (est.): ,- Marketing & sales (4%): approx , ,- Common public/private budget for joint activitites Private marketing cooperations help mobilize private funds for joint activities!
13 Private marketing cooperations: Example German Riviera e. V. Founded in Feb. 2007, before the G8-Summit (21 members) Private addition to the publicly funded DMOs Hoteliers/Restauranteurs from Kühlungsborn-H damm-dbr Bundeling of language skills, experiences from abroad, networks Use of independence for pragmatic action and innovation
14 Public Private Partnership (PPP) in organizing tourism operations
15 Hurdles for PPP, Kühlungsborn in the 1990s: Tourism Development at the German Riviera Mecklenburg PPP in organizing tourism operations Town/Kurverwaltung Businesses Lack of trust in The hoteliers only Public employees don t each other: care for their own care about our business, profit and they are they get paid if they already rich, anyway! work or not! Lack of mutual The hoteliers have Public employees have understanding no idea about what no idea what we really bureaucracy we have. need. Lack of common The hoteliers don t con- Public employees don t interest sider public intererst care if we go broke New organizational forms must lead to a sharing of responsibility!
16 Organizational breakthrough in 2001 Traditional municipal Kurverwaltung replaced by TSK GmbH! Town of Ostseebad Kühlungsborn 100% Kurverwaltung Operational arm of the town, reporting to Mayor Private businesses Town of Ostseebad Kühlungsborn 25% Private businesses Gesellschafterversammlung 100% 75% through misc. private associations Tourismus Service Kühlungsborn (TSK) GmbH reporting to share holders; Director with business background Privatization of Kurverwaltung with public AND private shareholders!
17 Public Private Partnership (PPP) in funding tourism operations
18 Flow of public/private funding in Kühlungsborn Guests (overnight visitors) Revenues Kurtaxe (Hotels, etc.) Guests (day visitors) Rev. Kurtaxe (machines) Tourismus Service Kühlungsborn GmbH - Marketing/PR - Events - Tourist info - Marina 1,4 Mio.! Private businesses Fremdenverkehrsabgabe (FA) Kurtaxe (KT) Town of Ostseebad Kühlungsborn Kurtaxe: ,- p. a. FA: ,- p. a. Kommunalrer Service Kühlungsborn (KSK) Maintenance of public spaces, incl. - Parks, benches, beach - Streets, garbage, toilets - Gardening - Decorations (Christmas) High influx of guests provides budget for quality public infrastructure!
19 Funding sources: Tourism Development at the German Riviera Mecklenburg Funding public infrastructure/marketing in Kühlungsborn Kurtaxe : 1 in winter / 2 in summer: total over 3 mill p. a. (only for certified recreation communities, e. g. Seebad ) Fremdenverkehrsabgabe : Tax levied on ALL businesses; based on revenues and factor reflecting dependence on tourism; over 0.6 mill p. a. Funds are earmarked for maintaining tourism infrastructure, events, service and marketing. 30% for administration. - New infrastructure through taxes/grants (very low debt per capita: under 200!) Acceptance of taxes/levies very good among guests and businesses! Results must be visible!
20 Innovative marketing - Examples German Riviera e. V. Development of our own brand especially for international marketing, complementing the official one: German Riviera instead of Mecklen what? Study trips für INDIVIDUAL journalists with partner over several days instead of journalist herds without time/exclusivity Cooperation with unusual partners: border shops, port authorities, bridges, Chambers of Commerce, Samba schools ( Mariposa /Copenhagen!) and others Founding sister associations in the cultural sector (congruent memberships) to use the arts for destination development (Van Gogh and Cezanne were pioneers of the Côte d Azur)
21 Many thanks for your attention! and the best of luck in developing your destinations!
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