Strategic Development of Tourism

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1 Strategic Development of Tourism Through Events Frédéric Dimanche CERAM Sophia Antipolis - France Creating competitive advantage for your destination An International Conference on Destination Management Budapest, Hungary, 7-9 February 2007

2 "Europe is well on its way to achieving yet another year of positive growth. Performance to date has been boosted by a whole host of events that have taken place in Europe this year, from the Winter Olympic Games in Turin, to the FIFA World Football Cup in Germany, the Ryder Cup in Ireland, and numerous events linked to famous artists and musicians such as the 400th anniversary of Rembrandt's birth, Mozart's 250th and Picasso's 125th." Tom Ylkänen, Vice Chairman of the European Travel Commission's (ETC's) Market Intelligence Group (2006)

3 Planned Events Anything that is out of the ordinary for the firm/organization It can be planned to benefit tourists, or the destination and its residents, or both To the visitor, a special event is an opportunity for a leisure, social, or cultural experience outside the normal range of choices or beyond everyday experience Special events arouse expectations, and always motivate by providing a reason for celebration

4 Creating competitive advantage Comparative advantage refers to a destination s natural endowment in factors of production; the resources that make a destination attractive Competitive advantages refer to a destination s ability to use these resources effectively

5 Strategic Planning For destinations to fully benefit from events, they need to implement a long-term strategic approach Events objectives should be aligned with destination objectives Destinations should develop an event portfolio that will help reach organizational goals Each type of event is an asset that helps meet specific goals for the destination

6 Event Tourism Policy Process DMO Roles and Strategy Choices Event Production Equity in Events Sponsor Events Assist the Sector Source: Getz, 1997, p. 116

7 Benefits of events for destinations (1) Provide off-season benefits (economic impacts) Are incentives to attract first-time customers Can generate additional demand Can encourage customers to stay longer Can spur development in the destination Can reinforce attachment to the community Also, they are flexible products: They can change over time They can be adapted to various markets and trends

8 Benefits of events for destinations (2) They can help reach specific target markets for the destination They can help differentiate the destination They can help create or reinforce the image of a destination They can help promote, position, and brand a destination Indeed, a destination marketing strategy should be coordinated with event marketing Events can be seen as communication tools that are useful in building awareness and image for the host destination

9 Events build Destination Brand Equity Brand Equity Brand Awareness Perceived Quality Brand Associations Loyalty

10 The power of events Source: Google Trends Search term: Cannes

11 Events as products Events were often community events that happen to attract visitors as privileged guests Then, events become additions to the product portfolio of a destination Finally, events become products specially made for visitors

12 Events as products They function as celebrity endorsers for the destination They communicate about the destination s attribute and help change people s perceptions They help improve visitors satisfaction with the destination Consistency of the event/product portfolio is important

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14 Events as Territorial Marketing Tools Beyond tourism, events are managed for territory image building, brand development, positioning objectives They target the media, potential tourists, but also investors and potential business partners

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16 Events as recovery strategy The concert, unofficially being referred to as either SARS-stock, or SARSapalooza, was initially conceived as a way to tell the world that Toronto is a safe place to come (CBC)

17 In conclusion A tourist experience is a sum of memorable events Events are more than products; they are key tools for destination marketing in an experience economy Events have the power to define the destination in the eyes of the visitor and they create the experiences consumers are looking for Destinations should develop event portfolio strategies that are integrated in and consistent with the destinations development and marketing strategies

18 Thank you for your attention