“Bringing tourism, cultural industry professionals and regional authorities

to one table...under which conditions are

private companies partners for cultural tourism?”

Walther Czerny, ATC-Consultants

10. September 2008

Introduction -a few personal remarks...

• Culture– Origin of the word „culture“– Hochkultur vs. Alltagskultur– Term „Culture“

• Meaning in Sociology

• „What is culture“?

10. September 2008

Introduction -a few personal remarks...

• Tourism– International Tourism figures

• Worldwide tourist arrivals 2007: 903 Million, Europe: 484 Million or 54%

• Worldwide income from tourism in 2007: €625 Billion

– A „Mass phenomenon“– In the context of macroeconomic accounting

10. September 2008

Introduction - a few personal remarks...

• Cultural Tourism– Components

• archaeological sites, cathedrals, food, fashion, etc

• Local pride and prestige

– European integration• Union for economic integration, direct

• indirect econ. benefits

• Maintaining Cultural diversity

10. September 2008

How can private partners be motivated to participate in projects of cultural tourism?

• Cultural activities - the Actors– Often low paid or unpaid, but meaninful – Many actors spend their leisure time– Actors are eager to share experiences - and travel– Income is welcome

10. September 2008

How can private partners be motivated to participate in projects of cultural tourism? (cont‘d)

• Consensus among Three parties needed:– Public Legislation & Administration– Cultural Actors– The General Public

10. September 2008

How can private partners be motivated to participate in projects of cultural tourism? (cont‘d)

• Mutual RESPECT is essential

• Culture and arts - players of the market economy?

• Sense of ownership and financial motivation

10. September 2008

What needs to be considered when planning cultural tourism projects?

• Freedom of expression for the arts important

• Mutual respect amon all players

• Holistic planing approach will bring best results

10. September 2008

Hardware&

Production

Marketing

&

Distribution

Vision&

Innovation

Management&Organisation

Funding&

Investment

A holistic planning approach for PPP Projects

•Vision & Innovation are the concepts behind each project

•Management & Organisation keep the projects going

•Marketing & Distribution are instrumental for a competitive product

•Hardware & Production strategy puts projects on a solid ground

• Investment & Financing ensure the economic viability

Successful projects require an interrelated co-operation of all elements

Basic principles of strategic planning

10. September 2008

Hardware&

Production

Marketing

&

Distribution

Vision&

Innovation

Management&Organisation

Funding&

Investment

A holistic planning approach for PPP ProjectsSuccessful projects require an interrelated co-operation of all elements

Basic principles of strategic planning

10. September 2008

ProductDevelopment

MarketAnalysis

StrategicPartners

PricingPolicy

Commu-nication

Marketing: an important tool for Cultural Tourism

Market analysis•SWOT-analysis•Target groups•Carrying capacity

Product development•Unique Selling Proposition•Corporate Identity, Branding

Marketing

10. September 2008

Marketing: an important tool for Cultural Tourism (cont‘d)

Strategic Partners•Co-operation, Synergies•Sponsoring)

Pricing policy•Revenue, Break even•Pricing strategies

Communication•Advertising, Public Relations•Distribution strategies

ProductDevelopment

MarketAnalysis

StrategicPartners

PricingPolicy

Commu-nication

Marketing

10. September 2008

From Attention to Action

Attention

Interest

Desire

Action

Invo

lvem

ent

of

targ

et g

rou

ps

Fo

cussin

g o

f po

tential m

arket

Unique Selling Proposition and innovative appearance

Tangible and intangible factors for a distinct image

Attractive and competitive product; added values

Tailor-made product for specific target groups

10. September 2008

Defining the position within the market

Market share

Mar

ket

gro

wth

Stars Question marks

Cash cows Poor dogs

Stars: •High market share and high market potential - at the ceiling of the life cycle Question marks:•Poor market share and high market potential - at the beginning of the life cycleCash cows:•High market share and poor market potential - declining phase of the life cyclePoor dogs:•Poor market share and poor market potential - should be removed from the portfolio

10. September 2008

How can PPP models be made sustainable and successful?

• Cultural Tourism PPP database:– Best practise examples and benchmark models– Forum for exchange of ideas and experiences

• Internet - ideal tool for reaching niche markets

• Creating International networks of peers

10. September 2008

How can PPPartnership models be made sustainable and successful? (cont‘d)

• Examples:A) Salzburg Festival

B) Apple orchard in „Goricko Nature Park“ Slov.

C) WaterWonderWorld in Krimml Salzburg

D) ...and a few more to discuss

10. September 2008

Conclusion

• Need integrated approach

• Clear European National and Regional policies and implementation structures

• Professional and resourceful approach to securing funds

– Public sources, int‘l funds and investments– Private sector funding

10. September 2008

Conclusion

• Cultural tourism– valuable tool for regional economic development– Not restricted to elites; must never be boring!– Key to successful „product development“:

engagement of all players– New type of Regional Devekopment Managers

with emphasis on Cultural Tourism is emerging

Thank you!

Walther Czerny, ATC-Consultants (Austria)