Impact of European Cultural Routes on Smes' Innovation And

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Impact of European Cultural Routes on Smes' Innovation And Impact of European Cultural Routes on SMEs’ innovation and competitiveness The study is financed under the Competitiveness and Innovation Framework Programme (CIP) which aims to encourage the competitiveness of European enterprises 1 Contents Executive summary Part I Analysing the impact of the European Cultural Routes 1. Introduction 1.1 Study goals and concepts definitions 1.2 Methodological approach 2. Cultural Routes of the Council of Europe 2.1 History of the programme 2.2 Cultural Routes programme today 3. Cultural tourism trends in Europe: a context for the development of Cultural Routes 3.1 Cultural tourism: major drivers and niches 3.2 Challenges and created opportunities for Cultural Routes Conclusions 4. Governance of the Cultural Routes networks 4.1 Network structure and resources 4.2 Fiscal management and funding opportunities Conclusions 5. SMEs’ innovation and clustering within the Cultural Routes networks 5.1 Cultural Routes’ impact on SMEs’ innovation 5.2 Clustering between Cultural Route partners and local SMEs 5.3 Measuring the Cultural Routes’ impact and SMEs’ performance Conclusions 6. Increasing attractiveness of the lesser known European destinations via the Council of Europe Cultural Routes programme 6.1 Developing the Council of Europe Cultural Routes brand 6.2 Cultural Routes programme branding and marketing 6.3 Establishing sustainability standards 7. Conclusions and recommendations 7.1 Conclusions 2 7.2 Recommendations Part II Cultural Route case studies The Hansa Cultural Route Routes of the Legacy of al-Andalus The Routes of the Olive Tree Via Francigena Transromanica Review of the relevant European and international projects Bibliography Appendices 3 Executive summary The study on the impact of European Cultural Routes on SMEs’ innovation and competitiveness was jointly launched by the European Commission (EC) and the Council of Europe (Council) in September 2010. Its objectives were to provide insights into the effects produced by the transnational Cultural Routes – such as those certified by the Council of Europe – on SMEs’ performance, innovation capacity, and network and cluster development; to examine the potential of Cultural Routes for promoting sustainable and quality tourism in Europe; and to analyse to what extent Cultural Routes networks can benefit SMEs, especially in rural areas and less-known destinations. The main expected outcomes from the study were to: – identify key actors currently involved in Cultural Routes; – understand the benefits and disadvantages of their environments (especially in the context of the current economic conditions); – estimate the potential of Cultural Routes, their needs and concerns on the way to sustainable development; and – to establish links with different levels of authority – local, national and European – financial and governmental institutions, tourist organisations, and other bodies that would encourage future development of the Routes. Methodology The study included two main components: – case studies of five Cultural Routes – the Hansa, the Legacy of al-Andalus, the Via Francigena, the Olive Tree and the Transromanica; – an analysis of several transversal issues relevant to all 29 Council-certified Cultural Routes and to the environments in which they are operating. The issues included: cultural tourism trends in Europe; Cultural Routes’ management and governance structures; SMEs’ innovation and competitiveness; branding and marketing of the Cultural Routes; characteristics of the Cultural Routes networks; the degree to which quality sustainable tourism criteria are implemented within the Cultural Routes; the role of ICT in the marketing and promotion of Cultural Routes; and the Cultural Routes programme in the context of relevant initiatives at European and international levels. Interviews with international organisations, such as UNESCO and the Organization of Ibero-American States were also conducted by the Council of Europe. Enquiries were made about the current state of development and future implementation strategies of the related cultural projects run by these organisations in eastern Europe, Asia, North Africa and the Caribbean. 4 Part I Analysing the impact of the European Cultural Routes 5 Main findings The Cultural Routes of the Council of Europe are in line with the key trends of cultural tourism development in Europe today. They have achieved a noteworthy impact and progress within the last two decades, and shown enormous potential for SME generation, clustering, networking (intercultural dialogue), and promoting the image of the Council of Europe and Europe generally. The Cultural Routes encourage widespread community participation in cultural activities raising awareness of a common cultural heritage. Established on cultural and social principles, the Cultural Routes represent a resource for innovation, creativity, small business creation, and cultural tourism products and services development. The promotion of cultural tourism is a logical next step in developing Cultural Routes since this type of tourism builds on the uniqueness and authenticity of remote destinations, local knowledge, skills, heritage and traditions. Cultural Routes networks benefit SMEs by providing markets for SMEs’ products and contribute to tourism revenue generation in remote destinations. A number of innovative practices were recorded within the SMEs and various routes, with the organisational, product and service forms of innovation being the most noticeable. At the same time, the economic and social impacts of the Routes vary greatly since the they differ not only in their thematic focus but also in their network and management structures, development approaches, geographical dimensions, target groups, capacities, and quality standards as regards products and services. According to the study, the most urgent issues that Cultural Routes need to address include the development of better: – transnational connectivity of the Cultural Routes network; – co-ordination at European level of the development and promotional strategies of the Cultural Routes; – brand image and marketing strategies; – quality and sustainable tourism standards development/implementation; – human and financial resources of the Routes; – expertise in the management of the networks; – exchange of good practices; and – network management and performance evaluation tools. Taking these issues into account, the study suggests creating a cohesive SMEs involvement strategy for the Cultural Routes, and establishing strong partnerships with different authorities and stakeholders – financial, educational and governmental institutions, tourism organisations, market agents, etc., at the international, European, national and local levels – in order to produce a more stable long-term impact and to ensure increased economic and cultural benefits from Cultural Route activities. The Council of Europe’s capacity-building role is regarded as crucial in the development of this strategy. A number of the Cultural Routes have already started to co-operate with various public and private sector actors locally, regionally and/or transnationally with a view to providing better services and supporting tourism development actions. These attempts can be further reinforced by the input of adequate human and financial resources, by the development of the common Cultural Route brand, while pursuing uniqueness in the design of Cultural Routes’ tourism products and services. 6 Transnational networks and accessibility to different levels of funding – European, national, regional and local – are viewed by the study as the foundation for the Cultural Routes’ success at their early stage of development. While some networking is taking place between Cultural Route partners, there is a clear lack of support mechanisms – capacity-building and funding, in particular – to encourage more face- to-face partner interactions and meetings. Without this vital “connection” each partner concentrates his/her activities on their own part of a Cultural Route, thereby hindering network expansion. The evolving trends and market niches in cultural tourism offer different opportunities to the Cultural Routes for closer interactions. These opportunities should be used to establish more stable connections and stronger regional and transnational networks. Summary of recommendations The study concluded that in order to ensure that the potential of the Council’s Cultural Routes programme for sustainable and inclusive growth and the promotion of economic, social and territorial cohesion in Europe is fully realised, and in view of exploiting this potential for cultural tourism, it is important to develop a strategy at European level. In order to help Cultural Routes to address the existing challenges, to collaborate more effectively transnationally, and to realise their potential as a basis for cultural tourism development, focused action is recommended in five main areas: 1. Capacity-building. 2. Network governance. 3. Performance evaluation. 4. Brand image and marketing. 5. Co-operation with the main stakeholders. Furthermore, the following priority actions are suggested within these five activity areas: a more comprehensive understanding of the value of tourism for culture, for Cultural Route projects and destinations needs to be developed; the role of local communities in promoting sustainable cultural tourism development should be addressed; and various aspects of sustainable tourism – demographic, cultural and economic trends, entrepreneurial
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