FINNISH SNOW HOWReykjavik

23.3.2010

Marina Krause

Finland in the beginning of 1990

• The Finnish mark (FIM) over valued

• Price level sky high • Deep recession in

markets• Finns travelling abroad

in thousands• Currency deficit

Help on the way

• Devaluation of FIM autumn 1991• FIM floating 1992• Competition due to recession• Tax on outbound tourism• Pricelevel down• A conciderable increase in money

for marketing and product development

Governmantal funding of the Finnish Tourist Board budget, 1990 - 2000 and 2009 - 2010, at current prices and real terms (2009 prices), in Euros

Year At current prices, In real terms, 2009 pricesmillion euros million euros

1990 11,6 16,11991 13,1 17,41992 15,5 20,11993* 20,7 26,31994 21,5 27,01995 14,0 17,41996 13,1 16,21997 13,1 16,01998 16,0 19,31999 15,5 18,52000 15,8 18,2

:2009 14,8 14,82010 9,8 9,8

* In 1993 Finnair and the Finnish Tourist Board receivedtogether an extra 20 million FIM for marketing purposes.This sum is not included in the tabel above

Source: Finnish Tourist Board and Statitics Finland (indexes)

More money more honey

• Development of Domestic Tourism–Spa culture–Subsidised holidays–Short breaks

• Lapland affordable (1000 FIM/week)

• Workers wellbeing (preventive care)

Marketing campaigns

• Nordic Markets• Central Europe• East and Far East

–New offices and activities in Estonia, Japan, Russia, China, Korea

Global Finland 1993Nord Info GmbHCommaFinnovaETC planning commissionScandinavian Tourist BoardNordiska Turistrådet

Product Development & Seasonality

• SnowBall project – We Finns have the snowhow!

• New winter season , activities Feb-Mar• Product development• Workshops and fam. trips• Print and press• Advertising campaigns

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

WinterSummerTotal

Overnight stays in Finland

CHRISTMAS SEASON

• Touroperators to be bought• Product development together• Hundreds of press people

and PR events• UK – main market• Opening up of other markets• Santa Village and Santa Park

UK Overnights

19931994

19951996

19971998

19992000

20012002

20032004

20052006

20072008

20090

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

WinterSummer

Product Development

• Farm stay; cottages; holiday villages– Standards and quality criterias

• Ministery for Agriculture - evaluation

• Product Manuals• Central booking• Fam. Trips• Joint marketing

Regional Networks

• SUOMA = Association of Regional Tourism organisations

• Co-operation in IT and Product development

• Sales promotion Domestic• Fam. trips and work-shops from abroad

IT

1993 Lotus Notes –internal1994 Market information system (MIS)1995 Promis - professional MIS1995 Relis – research information system

(R&D)1996 Contact Center & CRM World wide distribution

Quality programmes

Training programmesISO 9000Tourism industry’s own standard

What did we learn

• A pulse of money triggers a lot> Tourism was recognized as an industry

> Tourism - quick help? Yes/No > Product development > Seasonality > Co-operation – ministeries, regions,

private/public, states and continents

Where did we go wrong

• Time frame over optimistic• Private / public as long as there is

money?• Years of work to reset mindmap• Long term commitment from all parties

Sören Kirkegaard

Ting tar tid!Tack!