Escola Universitària d’Enginyeria Tècnica de Telecomunicació La Salle

Final Thesis

Graduate in Management of Business and Technology

CYCLING TOURISM IN ANDORRA

Student Promoter

Oriol Gasset Granja Llewellyn Thomas

ACTA DE L'EXAMEN DEL TREBALL FI DE GRAU

Meeting of the evaluating panel on this day, the student:

D. ORIOL GASSET

Presented their final thesis on the following subject:

CYCLING TOURISM IN ANDORRA

At the end of the presentation and upon answering the questions of the members of the panel, this thesis was awarded the following grade:

Barcelona,

MEMBER OF THE PANEL MEMBER OF THE PANEL

PRESIDENT OF THE PANEL

- 2 - Acnowledgements

First of all I would like to express my deepest gratitude to my promoter, Llewellyn Thomas for his dedication, attention, time and support throughout this work.

I would also like to thank the people who have participated and helped to make this project a reality. Mainly Andorra Turisme and Jordi Torres product director and new projects of Andorra Turisme.

Finally, I would like to thank my family for supporting me since I was a child and for giving me the opportunity to study this degree in the last four years.

Also to all professors for giving me the opportunity to enrich my knowledge. And to my friends and classmates who have helped me to finish this Degree in Management of Technology companies.

- 3 - Executive Summary

The work will be a Management Case. The question that is the research objective in this Management Case would be "Find / Develop and enhance the cyclist tourism industry in Andorra".

First in the work there is an introduction on the cycling of tourism in world-wide level, to later introduce in the concrete case of Andorra.

Then we will analyze different aspects of Andorra as a destination for cycling tourism such as its infrastructure, its current demand, the markets that are working and the potentials and supply of product. Within the product offer that Andorra offers, the organization of international events such as "La Vuelta" and "Le Tour", and the organization of non-professional races such as "La Volta als Ports" and "La Purito".

We will also analyze the destinations of the French Alps, Dolomites in Italy and Switzerland which we consider to be the main competing destinations of Andorra in this type of tourism.

After the tourism of cycling in Andorra we will make the diagnosis where it is exposed the problems or weaknesses that have Andorra at the moment like destination of the tourism of cycling.

Finally, We will conclude the work with a marketing plan to improve Andorra as a cycling destination. The main strategies we will use are communication, product and differentiation. The main lines of action will be the brand, promotion and product.

- 4 - Table of Contents Acnowledgements ...... - 3 -

Executive Summary ...... - 4 -

1. Introduction ...... - 8 -

2. Cycling Tourism ...... - 9 -

3. Background of the problem: Analysis Cycling Tourism in Andorra ...... - 10 -

3.1. Introduction and General Considerations ...... - 10 -

3.2. Internal analysis ...... - 11 -

3.2.1. Analysis of the cycling tourism offer ...... - 11 -

3.2.1.1. Independent Cycle tourism, recreational cycling ...... - 11 -

3.2.1.2. Pasive participation ...... - 13 -

3.2.1.3. Competitive cycling events ...... - 14 -

3.2.2. Infraestructure and complementary services ...... - 15 -

3.2.3. Analysis of the demand ...... - 17 -

3.2.3.1. Evolution of demand ...... - 17 -

3.2.3.2. Main Issuing Markets ...... - 19 -

3.2.3.3. Other potential markets...... - 20 -

3.2.4. Analysis of marketing and Promotion Andorra Turisme ...... - 21 -

3.3. External analysis ...... - 22 -

3.3.1. Microenvironment Analysis ...... - 22 -

3.3.1.1. Competition Analysis ...... - 22 -

3.3.1.2. Customer analysis ...... - 23 -

3.3.2. Macroenvironment Analysis (PEST Analysis) ...... - 24 -

4. Diagnosis of Cycling Tourism in Andorra (SWOT Analysis) ...... - 25 -

5. Marketing plan for cycling tourism in Andorra ...... - 26 -

5.1. Objective of the Plan ...... - 26 -

5.2. Marketing Strategies ...... - 27 -

5.2.1. Market growth strategy ...... - 27 -

5.2.2. Communication Strategy ...... - 28 -

- 5 - 5.2.3. Differentiation Strategy ...... - 28 -

5.3. Action Plan ...... - 29 -

5.3.1. Branding ...... - 29 -

5.3.2. Products ...... - 31 -

5.3.3. Promotion ...... - 32 -

5.3.3.1. Traditional Techniques ...... - 32 -

5.3.3.2. Marketing Online ...... - 33 -

5.4. Gant Chart ...... - 34 -

6. BIBLIOGRAPHY ...... - 36 -

7. APPENDIX ...... - 40 -

7.1. Appendix A ...... - 40 -

7.2. Appendix B ...... - 44 -

7.3. Appendix C ...... - 45 -

7.4. Appendix D ...... - 47 -

7.5. Appendix E ...... - 48 -

7.6. Appendix F ...... - 49 -

7.7. Appendix G ...... - 51 -

7.8. Appendix H ...... - 52 -

7.9. Appendix I ...... - 53 -

7.9.1. Appendix I.A ...... - 53 -

7.9.2. Appendix I.B ...... - 55 -

7.9.3. Appendix I.C ...... - 56 -

7.9.4. Appendix I.D ...... - 57 -

7.10. Appendix J ...... - 58 -

7.11. Appendix K ...... - 58 -

7.12. Appendix L ...... - 59 -

7.13. Appendix M ...... - 61 -

7.14. Appendix N ...... - 61 -

- 6 - 7.15. Appendix O ...... - 63 -

7.16. Appendix P ...... - 63 -

7.17. Appendix Q ...... - 64 -

7.17.1. Appendix Q.A ...... - 64 -

7.17.2. Appendix.Q.B ...... - 64 -

7.18. Appendix R ...... - 64 -

7.19. Appendix S ...... - 65 -

7.20. Appendix T ...... - 66 -

FUTURE STUDIES ESSAY ...... - 67 -

ESSAY 1: SOCIAL CHANGES ...... - 67 -

ESSAY 2: THE FUTURE OF MARKETING ...... - 70 -

ESSAY 3: THE FUTURE OF WORK ...... - 75 -

ESSAY 4: THE FUTURE OF MANAGEMENT ...... - 78 -

ESSAY 5: INNOVATION AND TECHNOLOGY ...... - 82 -

Word Count: 7991

- 7 - 1. Introduction

Historically, sports tourism and cycling tourism were not known and considered important within the economy of a region, to the point that the first time that sports tourism was defined was in 1992. But nowadays, with the growth in the sports sector in general and also in cycling, cycling tourism has become a type of tourism that many regions, mainly European, are working on and promoting.

Andorra has an excellent environment for the practice of outdoor sports and the commitment made by public administrations in recent years have made the Principality of Andorra an ideal environment for the practice of cycling.

The development and growth of cycling tourism in Andorra began in 2008, with the idea of having a tourist offer 365 days a year to the Principality of Andorra, where one of its economic pillars is tourism.

At a national level, the Ministry of "Ordenament Territorial" has promoted campaigns for the safety of cyclists and have improved roads and produced guides and maps with all the necessary information for each mountain port and each route.

At an international level, the Principality has been committed to organising events such as "La Vuelta" or "Le Tour".

It has promoted road cycling races such as "La Purito Andorra" or "La Volta als Ports" and more recently MTB races such as "La Gran Fondo Andorra" or "Andorra Bike Race".

Andorra has significant potential within cycling tourism and especially road cycling tourism, and I believe it still has significant potential for improvement.

The problem with Andorra is that it is a young destination, where different aspects still have to be improved, but it has great potential. and the demand for tourists in this type of tourism can be increased. With the objective of the work of being able to make recommendations for the improvement of the destination of Andorra within the tourism of cycling.

We will conclude the work with a marketing plan to improve Andorra as a cycling destination, mainly focusing on Andorra's main market which is Spanish. The main strategies we will use are communication, product and differentiation.

- 8 - 2. Cycling Tourism

Cycling tourism is a growing type of sports tourism, mainly due to the fact that the bicycle has become very popular both as a sporting or recreational activity and as a means of daily transport. The link between bicycle and tourism goes back a long time, the importance of the bicycle goes beyond a simple means of transport. (See appendix B)

For this type of sports tourism, Europe is one of the key markets for both the product it offers and the demand. We can find interesting markets from larger countries such as the United Kingdom or Germany, to smaller countries but that cycling is very popular as Belgium, Holland or Denmark. (CBI, 2015)

There is no universal definition of cycling tourism that explains what can be understood by cycling as tourism. It is for various reasons that different approaches can be found (sports, recreational, competitive, events,...), different characteristics of the trip, the motivation and purpose of the trip and the extent to which a bicycle serves as a tourist transport all reasons make it difficult to find this universal definition. (Johnson and Bonham, 2015)

Cycling tourism can have extensive benefits for the regions, it is a growing market and very valuable especially for rural areas. It is a good source for local businesses in rural areas, whether for local commerce, attractions, accommodation providers or restaurants, as the money spent by these tourists stays in the local economy. Cycling tourism provide additional attractions and activities for visitors that will help prolong the stay. It can also provide new incentives for people to visit an area and can help attract new types of visitors (Sustrans, 1999) (See Appendix D)

Cycling tourism is an environmentally sustainable tourism because it has a minimal impact on the environment and can also help to take advantage of existing resources in the area that were underused as rural roads. (Sustrans, 1999)

Currently the cycling tourism market is driven by the growing demand for active holidays, the growing interest in "green" tourist activities.

For the tourists of cycling tourism it is necessary to have a good infrastructure, quality material, safety of cycling routes, pleasant accommodation for cyclists, transport of luggage and expert guides. (CBI, 2015)

- 9 - 3. Background of the problem: Analysis Cycling Tourism in Andorra

3.1. Introduction and General Considerations

Andorra is a small country located between Spain and France, and where currently tourism is the main economic activity of the country.

Andorra has a wide tourist offer to the country and has different types of tourism:

• Cultural tourism; for the different museums (Carmen Thyssen, Museu del Tabaco, Museu de l'automobil, ...) and Romanesque churches. • Nature tourism, for visiting the natural landscapes that the country offers, with its mountains and lakes. • Relax Tourism: the main offer of this type of tourism is Caldea, one of the main thermoludic centers in Europe.

But the most important types of tourism in the country would be trade tourism, and sports tourism.

The sports tourism is one of the most important types of tourism in Andorra. Especially in the winter with tourists who come to ski. And in the summer every time is more important the tourist related to cycling, that is the one that will analyze in the work.

But also are other sports that bring sports tourists to the country like; the hiking / trail running, the motor (trial and FIM awards 2017 & 2018), paddle (World Padel Tour), basketball (Morabanc that plays in the “Liga Endesa” and Eurocup) and football.

Andorra's commitment to cycling comes from a general commitment to outdoor sports tourism in Andorra. This is related to Andorra's strategy of tourism 365 days a year, which since 2012 is working as an important strategy. (See Appendix A)

The summer outdoor mountain sports that began to work from Andorra Tourism are: Hiking, Cycling (with the modalities of road cycling and MTB (X-country and Downhill), Canyoning, Climbing, via ferratas. Within these summer sports cycling is that Andorra had and has more potential and the most important to bring tourists to the country. It is also the one that has worked and invested the most.

The management related to tourism in Andorra has been carried out since 2008 by Andorra Turisme SAU. (See Appendix F)

In 2012, when he began to take the importance of sports tourism and the cycling tourist to the country. This coincides with the political change that took place in mid-2011,

- 10 - entered to govern DA (2011-2015, 2015-2019) ("Democrates per Andorra"). This bet of the government is reflected in the general budget, with the transfers made by the government to Andorra Turisme SAU. (See Appendix F)

As we can see in the table, (See Appendix F) the strong commitment of the government of Andorra for tourism, started from the year 2012, when increased transfers from € 8,961,488.02 in 2011 to € 14,000,000 in 2012, would be an increase of € 5,038,511.98 (56.22%).

3.2. Internal analysis

3.2.1. Analysis of the cycling tourism offer

Introduce into the cycling tourism for Andorra is a type of tourism that serves to decentralize tourism and with the idea of having a tourist offer 365 days a year. (See Appendix A)

The climate is an important factor in positioning Andorra as a cycling destination. Andorra has a high mountain Mediterranean climate with a subcontinental tendency. We can divide the climate of Andorra in three phases (cold, cool, comfortable/warm); Andorra has a very good climate (confortable/warm) for cycling from June-September, normal/regular (cool) climate in May and October and a bad climate (cold) for cycling from November to April. (See Appendix N)

In order to analyse the offer of cycling tourism in Andorra, we will use the Lamont typology (Independent Cycle tourism, recreational cycling, participatory cycling events, competitive cycling events and passive participation at cycling events), but we will analyze together the Independent Cycle Tourism and the recreatinal cycling for its similarity, the analysis will remain in three different types; (See Appendix C)

3.2.1.1. Independent Cycle tourism, recreational cycling

Andorra has and work with this type of cycling tourism both the Independent Cycle Tourism that would be characterized by being center-based type, that is, in which cyclist tourists are in the same accommodation all their stay and make different routes and the Recreational cycling that would be these cyclists who come cycling to the country and leave the same day, would be made up mainly of Catalan cyclist tourists due to proximity. (See Appendix C)

The reasons that the tourist chooses this destination is because in that destination there is a special devotion, or better facilities, or more safety, or because the landscape is more pleasant.

- 11 - Both in one type and the other (Independent Cycle tourism and recreational cycling ) we have to highlight that the type of profile "Cycling Enthusias" due to the difficulty of the routes The offer that Andorra offers for active cycling tourism is conditioned by geography, that is, it is a high mountain destination and very demanding for cyclists. (See Appendix D)

Andorra has 21 marked road-cycling routes. These routes are marked with indicative signs for cyclists at the start, arrival and every kilometer of the route. It provides information on the kilometers and the difference in level that remains until arrival, the average difference in level % and the altitude. These routes can be consulted on the website "Andorra Turisme" and with pamphlets distributed in tourist offices, hotels, specialised cycling shops. These routes can also be followed via GPS through a mobile app "Turismo Activo Andorra".

Andorra concentrates many mountain passes (cycling routes) in a very small space ratio. Of these 21 mountain passes that are signposted 6 (Coll de la Gallina, La Rabassa, Pal, Ordino-Arcalís and Cortals Encamp) have been reached by stages of the Vuelta or Le Tour, which still make them more special for cyclists coming to the country. The road conditions are very good, the total of the roads are very well tarred

They have an infrastructure adapted to this type of cycling; with 36 tourist accommodations adapted to cyclists, with bicycle rentals and specialized travel agencies.

It is a destination that offers roads with little traffic and quite safe for cyclists, actions taken by the Ministry of "Territorial Order" have to be evaluated, such as setting the minimum compulsory distance at 2 meters to pass a vehicle to a cyclist, in comparison with other European countries such as Spain, France, Germany, Belgium or Portugal that the minimum compulsory distance to pass a cyclist is 1.5 meters. (European Parliament, 2017). Also from the ministry of "Territorial Ordinance", was created the campaign "Andorra Cycling Territory". Its aim is to make people aware that there are more and more cyclists on the roads, they must be respected. To make Andorra an increasingly safe destination for cycling.

The number of cyclists and former professional cyclists who are residents of the Principality of Andorra and the number of teams and professional cyclists who choose Andorra as a destination for concentration, and are cycling tourist prescribers. (See Appendix G)

Another component that helps to be able to receive more cycling tourists are the additional services offered by Andorra. (See Appendix R)

- 12 - 3.2.1.2. Pasive participation

The organization of events is a product offered by Andorra to attract tourists at the time of the event and also advertise Andorra as a destination for cyclists at an international level. In the organization of events it is necessary to analyze two events carried out in Andorra that is Le Tour and La Vuelta, both events organized by the marketing agency A.S.O.

La Vuelta: Andorra has hosted 19 editions of the 73 editions that have been organized, and 8 of these 19 editions that Andorra has hosted have been in the last 13 years since 2007. (2007,2008,2010,2012,2013,2015,2017,2018).

La Vuelta 2018: On the part of Andorra Turisme has had a cost of 300.000€ the organization of the Tour of Spain 2018 that included two stages to the country; the stage 19 Lleida to Naturlandia (Andorra) and the stage 20 of Escaldes-Engordany (Andorra) to Coll de la Gallina (Andorra) an integrated stage to the country.

If we break down the cost of 300.000€ that paid Andorra Turisme to organize these two stages of the Tour 2018; 220.000€ would be the cost that I pay to Unipublic (A.S.O), to have the right of organization of the event to the country and 80.000€ would be the logistic costs (Rent of the road fences, construction of the tents to receive press rooms, habilitation spaces arrivals and departures, etc).

The television monitoring in Spain of these two stages; it was 1,597,000 spectators in stage 19 and 1707,000 spectators in stage 20. (FormulaTV, 2018) (Vertele, 2018)

This event has a very important media impact, (TV, radio, press, digital ecosystem,...) with positive effects for the destination. (See Appendix Q.A)

Le Tour: Andorra has hosted 5 times the organization of Le (1964,1993,1997,2009 and 2016).

Le Tour 2016: On the part of Andorra Turisme had a cost of 870.000€ the organization of Le Tour de France that included three days to the country (arrival, rest day, departure): Sunday July 10 with stage 9 (arrival in Andorra) from Vielha (Spain) to Ordino-Arcalis (Andorra), Monday July 11 rest day and Tuesday July 12 stage 10 (departure from Andorra) from Escaldes-Engordany (Andorra) to Revel (France).

If we break down the cost of 870.000€ that paid Andorra Turisme to organize these three days of Le Tour 2016; 650.000 would be the cost that I pay to A.S.O., to have the right to be able to organize the event and 220.000€ would be the logistic costs (Rent of the road fences, construction of the tents to lodge press rooms, habilitation spaces arrivals and departures, etc). In the case of the Tour these logistic costs increase in

- 13 - comparison to La Vuelta due to the fact that there is more accredited press, more spectators on the roads,... that this forces to increase the expenses of tents, adequacy of the spaces, fences,....

This event has a very important media impact, (TV, radio, press, digital ecosystem,...) with positive effects for the destination. (See Appendix Q.B)

3.2.1.3. Competitive cycling events

Competitive cycling events is when the cyclist travels to take a reace. The offer would be the organization of races; Andorra has two cycling races, one the Volta als Ports and the other La Purito.

La Purito: is a race that has 4 editions, the first edition was in 2015, is held in the month of August. The 2019 edition will be held on Sunday 4 August, has 3 different routes depending on the level of demand of the cyclist. The long distance route follows the same route as stage 11 of the Vuelta 2015 (145km and 5200m), and is considered one of the most demanding and toughest cycle-tourist races in Europe.

In the 2018 edition there were 2682 participants (90.75% were foreigners). (See appendix H)

It has the participation of former professional cyclist, which give more visibility, presence of fans to dispute the race. These former professional cyclist, who participated in the race are: Joaquim Rodríguez Oliver "Purito", who organizes the race, Carlos Sastre, winner of Le Tour 2008, Angel Vicioso, Angel Edo, Jose Antonio Hermida. Andorra Turisme in the 2018 edition subsidized the race with a sponsorship of 30,000€.

La Volta als Ports; is a race that has been running for 42 editions, held in the month of July. The 2019 edition will be held on Sunday 14 July, has 4 different routes depending on the level of demand of the cyclist.

In the 2018 edition there were 1120 participants (60.80% were foreigners). (See Appendix H)

It counted with the participation of professional cyclists, who are residents to the country, that give more visibility, presence of fans to dispute the race. The professional cyclists who participated in the event are , runner of the UCI WorldTeam Movistar, Jack Haig, runner of the UCI WorldTeam Mitchelton-Scott, , runner of the UCI Continental team EvoPro Racing and , runner of the UCI Continental team Pro Racing Sunshine Coast. Andorra Turisme in the 2018 edition subsidized with a sponsorship to the race of 35.000€.

- 14 - 3.2.2. Infraestructure and complementary services

In the analysis of the infrastructure and complementary services for the tourism of cycling to Andorra we will analyze the offer tourist lodgings that are adapted to the cyclists. We will also analyze the offer of bicycle rentals, the travel agencies specialized in cycling that are in the Principality of Andorra, communications to get to Andorra. Finally, we will analyze another complementary offer to that of cycling tourism, Andorra Sports Training Country

Accommodation offer; Andorra registered at the end of 2017, 235 tourist accommodations with 33099 places. (See Appendix S)

In 2018 there are a total of 36 tourist accommodations adapted to cyclists. These accommodations are adapted to cyclists because they offer among their services, a place to store, clean and fix the bicycle and provide adequate food for cyclists. Andorra Turisme has these hotels that comply with these services for cyclists, “Andorra Turisme” gives them an official cyclotourist seal, and adds them to the website visitandorra.com as a hotel for cyclists. (See Appendix S)

If we analyze by type these 36 tourist accommodations adapted to cyclists the majority are hotels 72.77% (26) are hotels. If we analyze by stars these 36 tourist accommodations, the clear majority are 3 and 4 star accommodations representing 77.77% (28), 38.88% (28) each, also highlight the 3 5-star accommodations, this means that 33.33% of the total 5-star accommodations are adapted for cyclists. (See Appendix S)

Bicycle rental

Bicycle rentals are a very important aspect for cycling tourism, it is very important for these tourists that in order to reach the Principality of Andorra have to take a plane as a means of transport, since many cyclists when travelling and have to take the plane prefer to rent it at the destination, by two main aspects the cost of check-in and the risk during the trip of damaging the bicycle. Bicycle rental is an important aspect in attracting cyclists from all countries (international level), except Spain and France.

Andorra has 8 rentals of downhill and MTB bicycles, but only 2 of road bicycles. It is an aspect to be improved in order to receive road cycling tourists. (See Appendix O)

- 15 - Travel agencies and accommodation that offer guided cycling routes in Andorra.

In Andorra there is currently a travel agency that offers guided cycling routes (VSL Sports), and 2 hotels (Hotansa, Holiday Inn), these agencies and accommodations have two main ways of working.

A first way to work would be for the tourist to buy some of the packages they offer of cycling through Andorra, which includes mechanical assistance, refreshments, photographic service and accommodation.

Another way of working is that they have reached an agreement with a travel agency specializing in cycling but the country of origin of the tourist and these foreign agencies sell the pack to the tourist but really who performs the service are the agencies and accommodations of Andorra.

Communications

For the tourists to arrive Andorra it is necessary to arrive by road from Spain it is arrived at the Principality of Andorra through the national highway 145 that goes of La Seu de Urgell up to the Hispanic border. Access to the country is through the parish of Sant Julià de Lòria (Carretera General 1). From France the Principality is reached by the national road 20. It is accessed in the country by the Pas de la Casa, Parroquia de Encamp (Carretera General 2).

The nearest airports from Spain would be Lleida (150km), Girona-Costa Brava (190km) and Barcelona (190km). The nearest airports from France would be Carcassonne (150km), Toulouse-Blagnac (170km).

It should be noted Andorra-La Seu Airport which would be in Spanish territory 20km from Andorra is planned that by the end of 2019, an improved GPS approach system for Andorra-La Seu Airport, which will be able to operate regular commercial flights linking Andorra with several European capitals and other connecting airports.This improvement could improve the image and be more attractive for cycling tourism and have more tourists. (See Appendix A)

Andorra Sports Training Country

The Andorra Sports Training Country is a project that Andorra Turisme created in 2015 to manage the product of sports stays, has the main objective of being an agglutinator and a platform for communication and international management of sports stays. (See Appendix T)

- 16 - 3.2.3. Analysis of the demand

3.2.3.1. Evolution of demand

I have not found specific data on the demand for cyclist tourists in Andorra. In this section we will analyze the evolution of the demand of tourists in general that has had Andorra and also the demand of tourists that has had Andorra in the organization of the different events and races.

In recent years the numbers of visitors to the country have grown. In 2017, Andorra visited a total of 8152148 people, of which 63.15% (5148288) are considered "hikers", people who come and go on the same day, who do not sleep any night in the country, and 36, 85% (3002860) are considered tourists, people who are more than one day in the country.

As I have said in recent years the number of visitors in the country has increased, and mainly thanks to the rise in the name of tourists.

Year Hikers Tourists Visitors (Total)

2011 5.741.317 (71,92%) 2.241.563 (28,08%) 7.982.878

2012 5.662.501 (71,67%) 2.237.939 (28,33%) 7.900.440

2013 5.348.108 (69,67%) 2.328.124 (30,33%) 7.676.232

2014 5.433.334 (69,69%) 2.363.436 (30,31%) 7.796.770

2015 5.187.070 (66,07%) 2.663.341 (33,93%) 7.850.411

2016 5.206.390 (64,87%) 2.818.875 (35,13%) 8.025.265

2017 5.149.288 (63,16%) 3.002.860 (36,84%) 8.152.148

2018 5.285.884 (63.47%) 3.042.370 (36,53%) 8.328.254

From the previous table we can analyze the growth of the number of visitors from Andorra from the year 2011 to 2017 of 2.12%, and the decrease in the number of visitors "hikers" by -10.31%, and the growth of tourists, 33.96%.

We analyzed the visitors by nationality the majority are Spanish in 4.162.138 (49.98%) followed by the French in 3.452.034 (41.45%) and the remaining are other nationalities in 714.082 (8.57%).

- 17 - If we analyze the tourists by nationality the majority are Spanish in 2,165,663 (71.18%) followed by the French in 485,237 (15.95%) and the remaining are other nationalities in 391,470 (12.87%).

If we analyze the "Hikers" by nationality the majority are French in 2,966,797 (56.13%) followed by Spanish in 1,996,475 (37.77%) and the remaining are other nationalities in 322,612 (12.87%).

If we analyse the visitors who come to Andorra by nationality, we can observe that in the case of Spaniards and those of other nationalities, more tourists come than "Hikers". The Spanish visitors 2,165,663 (52.03% ) are tourists and 1,996,475 (47.97% ) are "Hikers". Visitors other nationalities 391,470 (54.82% ) are tourists and 322,612 (45.18% ) are "Hikers".

On the other hand French visitors come more "Hikers" than tourists, French visitors 2,966,797 (85.94%) are "Hikers" and 485,237 (14.06%).

Types Nationality 2012 2013 2014 2015 2016 2017 2018 Spanish 2.292.563 40,49% 2.050.161 38,33% 2.013.696 38,26% 1.986.526 38,30% 2.094.847 40,24% 2.045.514 39,72% 1.996.475 37,77% French 3.118.721 55,08% 2.881.544 53,88% 2.881.544 54,75% 2.931.559 56,52% 2.837.696 54,50% 2.802.808 54,43% 2.966.797 56,13% Hikers Others 251.217 4,44% 416.403 7,79% 367.667 6,99% 268.985 5,19% 273.847 5,26% 300.966 5,84% 322.612 6,10% Total 5.662.501 100% 5.348.108 100% 5.262.907 100% 5.187.070 100% 5.206.390 100% 5.149.288 100% 5.285.884 100% Spanish 1.570.604 70,18% 1.636.841 70,31% 1.682.709 71,20% 1.898.119 71,27% 1.998.531 70,90% 2.164.167 72,07% 2.165.663 71,18% French 345.898 15,46% 393.646 16,91% 331.329 14,02% 439.106 16,49% 455.506 16,16% 457.483 15,23% 485.237 15,95% Tourist Others 321.437 14,36% 297.637 12,78% 349.398 14,78% 326.116 12,24% 364.838 12,94% 381.210 12,69% 391.470 12,87% Total 2.237.939 100% 2.328.124 100% 2.363.436 100% 2.663.341 100% 2.818.875 100% 3.002.860 100% 3.042.370 100% Spanish 3.863.167 48,90% 3.687.002 48,03% 3.696.405 48,47% 3.884.645 49,48% 4.093.378 51,01% 4.209.681 51,64% 4.162.138 49,98% French 3.464.619 43,85% 3.275.190 42,67% 3.212.873 42,13% 3.370.665 42,94% 3.293.202 41,04% 3.260.291 39,99% 3.452.034 41,45% Visitors Others 572.654 7,25% 714.040 9,30% 717.065 9,40% 595.101 7,58% 638.685 7,96% 682.176 8,37% 714.082 8,57% Total 7.900.440 7.676.232 7.626.343 7.850.411 8.025.265 8.152.148 8.328.254

The number of visitors to Andorra between 2012 and 2018 has grown by 427814 (5.42%); these figures can be analysed by nationality or type of visitor.

If we analyze this growth of visitors by nationality is due to the growth of the Spanish visitor 298971 (7.74%), and other nationalities 141428 people (24.70%) in contrast there has been a reduction of French visitors -12585 (-0.36% ).

If we analyze this growth of 427814 visitors by type of visitor; it is due to the growth of tourists 804431 (35.95%) and there has been a reduction of the "Hikers" in -376617 (- 6.65%).

If we analyze this growth between 2012 and 2018 of tourists in 804431 (35.95%) by nationalities is due to the growth of the Spanish tourist 595059 (37.89%), the French tourist in 139339 (40.28%) and the other nationalities in 70033 (21.79%).

- 18 - If we analyze the decrease between 2012 and 2018 of the "Hikers" in -376617 (-6.65%) by nationalities is due to the decrease of the Spanish "Hiker" -296088 (-12.92%%), the French "Hikers" in 139339 (40.28%) to that of other nationalities in 70033 (21.79%).

The three amateur cycling races organised in Andorra in 2018 had a total of 5,087 participants, of which 798 were Andorran (15.69%) and 4,289 foreigners (84.31%) tourists, these foreign participants had companions (5,296); the total number of foreign attendees who had the race was 9,585. We will differentiate from these 9585 foreign attendees, 8688 are tourists (90.64%) and 897 are "hikers" (9.36%). The average number of overnight stays by tourists in Andorra is 2.04. (See Appendix H)

Of these three races the one that stands out the most is "La Purito Andorra"; it is the one that has taken more foreign participants, it is also the one that has taken more tourists, as much in numbers as in percentage, and it is the one that takes a smaller percentage of "hikers". It is the one with the highest average number of overnight stays. (See Appendix H)

3.2.3.2. Main Issuing Markets

The main markets that Andorra is currently working on for cycling tourism are 4 Spain, France, United Kingdom and Germany

• Spain: It is the main issuing market for tourists to Andorra and is also the main issuing market for cycling tourists that Andorra currently has. It is the easiest market to reach, for reasons of proximity, cultural similarity, language, etc.. In Spain the main known destinations are Canary Islands, Balearic Islands, Costa Blanca. Currently new destinations are working this product as Girona. But these destinations offer a different product to that of Andorra, which is a High Mountain cycling destination. • France; It is the second emitting market of tourists for Andorra and it is also the second emitting market of cycling tourists that Andorra has. It is market that also exist the advantages proximity, cultural similarity, language. But it is a country that has a very important destination and known as are the French Alps that offer a product similar to Andorra. • Germany: It is a market that has recently begun to work together with the British. It is one of the markets that according to a study Andorra Turisme has more potential population Cyclists a total of 807,793 people. German cycling tourists have a tendency to make long stays of between 4 and 7 days. It is a market that the tourist to come to the country, does it through agencies, main distribution channel. Andorra have

- 19 - disadvantages because this tourist has two important destinations in cycling closer as they are French Alps and the Dolomites. • United Kingdom; It is a market that Andorra has also recently begun to work with the German. It is one of the markets that within cycling has more growth expectations, after the emergence of the effect SKY Team, Wiggins and . It is a market that according to a study Andorra Turisme to 2013 has a potential Cycle tourist Population of 350134 people. Important growth of Agencies specialized in cycling, it is the main distribution channel emitting tourists cyclists to the Principality. There are no popular cycling destinations in this country, the tourist interested in mountain biking has to travel.

3.2.3.3. Other potential markets.

According to data from a study carried out by Andorra Turisme in 2013, in 11 different countries to know the potential of Andorra (potential population) in foreign markets; we can separate the data into two, in the main markets, and other potential markets.

Four main markets, which Andorra is working on

Market German French Spanish UK

Potential 807,793 people 624,260 people 415,472 people 350,134 people population

Other potential markets, and that Andorra may work in a future

Market Russian Belgian Dutch Polish Swedish Israeli Portuguese

Potential 176,357 167,118 153,752 120,206 35,358 24,681 18,094 population people people people people people people people

- 20 - 3.2.4. Analysis of marketing and Promotion Andorra Turisme

• Events: Organize a stage of a "" ("Le Tour" or "La Vuelta") of road cycling each year. The celebration of cycling stages both La Vuelta and the Tour help to know the destination and better its image but with this strategy of being able to have integrated stages it improves even more this image of Andorra as a tourist destination for the practice of road cycling. • Races; Sponsorship/collaboration by means of subsidy to races at amateur level, both of road cycling with the Volta als Ports or La Purito. • Sponsorship: Andorra was secondary sponsor of "La Vuelta 2011". Sponsoring the last kilometer. (Govern Andorra, 2011) • Travel agencies Germany and United Kingdom; Contact with travel agencies or Tour Operators specialized in cycling of UK and Germany to sell the product Andorra of cycling in the offer that they have of destinations (buy workshop). This work is carried out by means of visits to the country by the heads of these agencies, in order to be able to show them the product and our infrastructures. We try to make these visits coincide with the dates of this "La Vuelta" or "Le Tour" in order to offer a better image. (See Appendix A) • Mobile App "Turismo Activo Andorra"--> 2015 Andorra Turisme created a mobile app "Turismo Activo Andorra" among other functions with other sports besides cycling, offers GPS tracking of the route. (See Appendix A) • Promotion on social networks in the account "AndorraWorld", both on Facebook, Twitter and Instagram • Cycling magazines Germany and UK; Sell Andorra's destination in specialized cycling magazines in Germany and UK with reports of the country to sell Andorra's destination in cycling practice. They do it in two different ways. The first one pays directly to the magazine to write the report. A second way is to pay the reporter to come to the country and this a few days to the country and can write the article. (See Appendix A) • International cycling fairs to sell our product as in "Sea Otter Europe", • Cycling jersey of the brand Andorra

- 21 - 3.3. External analysis

3.3.1. Microenvironment Analysis

3.3.1.1. Competition Analysis

In the first place, we will analyze the maximum competition those destinations that offer products and services very similar to our destination, Andorra. We will make a distinction between the most competitive cycling destinations, at an international level by country;(Appendix A)

• France (French Alps): It would be one of the main competition as a destination for tourists cyclists, the main area would be the French Alps. It has a product similar to Andorra, is a high mountain destination, with mythical mountain passes that road cyclists want to go up as Galibier, Alpe d'huez. Each year has several stages of the Tour that cross this area of France. They also organize important amateur races such as "La Marmotte" with more than 7500 cyclists. It has a very competitive infrastructure both accommodation and specialized travel agencies around the world that offer this product. • Italy (Dolomites): It would be another of the main competition as a destination for tourists cyclists, the main area would be the Dolomites. which offers a product similar to Andorra. It is a high mountain destination that has mythical mountain passes that road cyclists want to go up as Mortirolo or Stelvio. Each year there are several stages of the Giro d'Italia that cross this area of Italy. It also organizes important amateur races such as "Maratona dles Dolomites" which involves about 9000 cyclists of 40 different nationalities. It has a very competitive infrastructure of accommodation as well as specialized travel agencies from all over the world that offer this product. • Switzerland: It would be a competing destination of Andorra, it is a high mountain destination. It has important mountain ports, but less known (they are not mythical), like now Grimsel or the Furkha. One of the main reasons that its ports and that this region is less known by cyclists is that it does not host any of the three major cycling tours (Le Tour, La Vuelta, Giro). It has a very competitive infrastructure so it is accommodation but not all specialized travel agencies offer this product.

An important characteristic shared by these three destinations and Andorra is that cycling tourism is a complement to seasonal tourism, because the main tourism in all these regions is skiing in winter.

- 22 - 3.3.1.2. Customer analysis

In this section we will analyse the cycling tourist profile of Andorra, its characteristics and motivations. The analysis will be divided into two profiles; Profile 1 will be the profile of the tourist cyclist from Spain and France, Profile 2 will be the tourist cyclist from the United Kingdom and Germany.

Profile 1: Spain and France cyclist tourist profile;

• Person a middle/high-middle class • Stays generally in 3 and 4 star hotels • Half board stays. • Need to leave the bicycle at the hotel. Importance of cycling hotels with certificate. • Direct and online marketing. • Growth of the female tourist cyclist in the last 4 years, both alone and with a partner. • Increased training camps for both men and women • Tourist who usually comes with the family. But you can also come with other cyclists. • At the moment of choosing Andorra as destination they value the complementary offer that Andorra offers like; the commerce, offer of relax with Caldea, summer activities of Vallnord, Grandvalira and Naturlandia, offer of hiking...

Profile 2: United Kingdom and Germany cyclist tourist profile;

• Upper-middle class person • Stays generally in 3 and 4 star hotels • Half board stays. • Need to leave the bicycle at the hotel. Importance of cycling hotels with certificate. • Marketing mainly with specialized travel agencies. • Need for bicycle rentals. As the tourist travels by plane, there is usually a preference for renting a bicycle. • Bicycle rental of a medium/high or high range. They are usually upper-middle class cyclists who give importance to the model and range of the bicycle. • Average stays from 4 to 7 days. • Tourists who usually come with other cyclists, without the family.

- 23 - • When choosing Andorra as a destination, little value is placed on the complementary offer that Andorra offers. • Growth of the female tourist cyclist in the last 4 years • Increase in training camps

3.3.2. Macroenvironment Analysis (PEST Analysis)

The main conclusions of the analysis of the Macroenvironment (Pestel) where it would stand out:

• In the environment Legal Politico the stability of the country, the implication of the government in the Tourism, the low fiscal policy and that Andorra does not form part of the Schengen Area, the agreements with the Europe. (See Appendix I.A) • In the economic environment, Andorra is an economy oriented to services where tourism, trade and the financial sector are the fundamental pillars. The functioning of the Andorran economy depends on the external situation mainly neighboring economies. (See Appendix I.B) • In the social and cultural environment, we would mention the tendencies; to fragment the holidays, the value of the natural environment and also the tendency of the Spanish population to practice sport and cycling. ((See Appendix I.C) • In the economic environment, the improvements in communications, the digitalization in the tourism sector and finally the opportunity of Andorra with the Airport Andorra-La Seu. (See Appendix I.D)

- 24 - 4. Diagnosis of Cycling Tourism in Andorra (SWOT Analysis)

Strengths Weaknesses

• Organize important events • Cyclist destination with little annually (La Vuelta or Le tradition. It is not a traditional Tour) cyclist destination • Organize important amateur • Infrastructureà few specialized races. cycling agencies • Professional residents cyclist • Infraestructureà few road bike • Weatherà good weather rental June to August • Weatherà bad weather • Hotel Infrastructureà November to April. accommodation adapted to • Communicationà only road the cyclist communication. Destination far • Security and peace of mind away to attract cyclists • Complementary activities Germany, Benelux,... • Large number of mountain

passes in such a small space • Roads in good condition

Internal

Opportunities Threats

• Open new markets (Benelux, • French and Italy destination. Norway..) • New destinationà Girona, Costa • Improve /Enhance actual Blanca (May. June, September markets (Spanish, France, and October) German and British)

• Andorra-La Seu Airport • Partial or total entry into the

European Union (in negotiations) External

After analyzing the cycling tourism in Andorra and doing the Swot analysis we can conclude that Andorra has potential and can increase cycling tourists both through the current markets that are working and through new markets.

- 25 - The main problem is that it is not a traditional cycling destination, we can relate it to the fact that communication/promotion strategies have not been effective or sufficient.

For the opportunities to work with international markets apart from the problem of tradition we also find the problems of infrastructure, with few agencies specializing in cycling and with few bike rentals and also the problem of communications with international airports are more than two hours from the Principality and the only communication that is by road. These problems of infrastructure and communications do not affect the Spanish and French market.

In the marketing plan we will focus on the Spanish market, as it is a market with opportunities and fewer problems than the international markets.

The climate problem is not very serious because the objective of cycling tourism for Andorra is as a complement to ski tourism, between the months of May to October

5. Marketing plan for cycling tourism in Andorra

5.1. Objective of the Plan

The objective of the marketing plan for cycling tourism in Andorra is to follow the Strategic Plan for Cycling Tourism of "Andorra Turisme", but introducing new variants. The objective is to promote and establish cycling tourism focusing on the Spanish market, on the basis of a sustainable and competitive development. The specific objectives that will mark the lines of action are;

• Consolidation and promotion of Andorra cycling tourism in the main market, which would be the Spanish market, through a competitive offer of quality that generates an increase in the profitability of the sector and the economy of the country. Increase cycling tourists • Diversification in cycling tourism; looking for new products with the aim of increasing tourists and improving the image of the country as a cycling destination. • Strengthening the image of Andorra as a tourist cycling destination through the creation of a new brand "Cycling Andorra", making it more attractive to our target audience than that of our competitors through promotion and communication actions generating an increase and loyalty of the tourist. • Promotion of coordination and collaboration in cycling tourism planning between administrations (Government, Andorra Turisme and the different "Comuns" of each "Parroquia"), and between these administrations and the private sector (related to cycling tourism; hotels, specialised travel agencies, bicycle rentals,

- 26 - race organising agencies), promoting the co-responsibility of all the dynamising agents of Andorra cycling tourism, generating a growth in tourism activity. • Encourage the use of new technologies to increase the competitiveness of the destination and promote it. • Increase the average stay and the occupancy rate.

5.2. Marketing Strategies

The marketing strategies that we will apply for cycling tourism in the Principality of Andorra, will be the strategies of market growth, communication, differentiation. With these strategies we hope to meet the objectives set out in the plan.

5.2.1. Market growth strategy

The objective in the short, medium and long term would be to increase the number of Spanish cyclists who come to Andorra, it would be to increase the market share.

This growth can be achieved through new products or new markets. As Ansoff's matrix indicates, it relates products with markets, classifying the product-market binomial. If both are combined, four different strategies emerge. As the different tables indicate, these would be the different strategies: (Espinosa, 2015)

Product

Current New

Market Existing Market penetration Product development

New Market development Diversification

As the objective of the plan would be to work with a current market as the Spanish the two strategies that we can apply serious;

• The market penetration that consisted in obtaining a greater market share by working with our current products in the markets we currently operate. • Product development which consists of developing new products for the markets in which we currently operate.

The idea of focusing on the priority market such as the Spanish one would be; fundamentally it would be because it is the main market emitting tourists to the Principality of Andorra (71.18%), because it has a great potential level of sports tourism and cycling, as we can observe as we can verify in the Surveys published by the INE

- 27 - “Hábitos deportivos en España": Where there is a tendency in the Spanish population that makes more and more sport and cycling (See Appendix P). Other reasons for focusing on this market would be the location and ease of getting there by road. Also the interest that this market has for the secondary activities that Andorra offers.

The promotion will be aimed at consolidating and expanding the Spanish market for cycling tourism both for short stays and weekends, as well as for amateur races and the visualization of events such as "Le Tour" or "La Vuelta". Also with the idea of creating new non-existent products in line with this market segment to expand the market and try to position Andorra as a reference destination for cycling for this market.

5.2.2. Communication Strategy

Communication strategies aim to enable the destination to enter into relationship with its market, with the ultimate goal of getting consumers to adopt a certain behavior. It is considered that communication basically aims to inform, persuade and remember the products, and also to create a good image of the destination among consumers. (See Appendix M)

The brand is where all the communication strategies of a destination are supported. The current Tourism brand of Andorra would be VisitAndorra and from this brand encompasses all communication strategies for all types of tourism (skiing, cultural, rural, ...).

The current communication strategies used by Andorra Turisme to communicate Andorra as a cyclist destination would be: the organization of events, participation in national and international fairs, workshops, use of brochures, buy workshop, reports in magazines specializing in cycling, sponsorship of sporting events (La Vuelta 2011), advertising campaign in media TV (destination tourism in general). Also the use of new technologies within the web portal visitandorra.com and social networks such as Facebook, Twitter, Instagram, Youtube, Pinterest, Tripadvisor. (See Appendix M)

The costs of marketing and promotion constitute the major part of the expenses of any tourism agency (Gee & Fayos-Solá, 2003).

5.2.3. Differentiation Strategy

The strategy of differentiation consists of offering in the market a product or service similar to that of another destination but that has certain characteristics that make the client perceive it as unique. Deusto Formación, 2014)

- 28 - The strategy of differentiation in a destination focuses on creating an image for certain products where price is not the main attribute. (Camisón and Monfort, 1998). Andorra as a cycling destination can use some of its strengths to make a difference:

• The safety and tranquility that Andorra offers for road cycling. It is a destination that offers roads with little traffic and quite safe for the cyclist. For example, the minimum distance required to overtake a cyclist is 2 meters. There is also the "Andorra Territorio Ciclista" campaign, which aims to raise awareness of the fact that there are more and more cyclists on the roads who have to respect them. To make Andorra an even safer territory for cycling. But it should also be used to promote "Safety and tranquillity" because many Spanish cyclists are looking for this, with the increase in the number of accidents to cyclists in Spain. • Complementary activities offered by Andorra. The vast majority of Spanish cyclists come with the family and value all complementary activities. (See Appendix R), It should be emphasized that this attractive offer of complementary activities is not offered by the main competitors. • Large number of mountain passes(routes) in such a small space. There is no destination with so many mountain passes (routes) in such a small space radius. • Professional cyclists resident in the country and professional cyclists and teams who come to Andorra to do preparation stages. Use them as prescriptors to improve the image and be more attractive. It is a factor that other competing destinations do not have and should be marketed. Andorra currently has 51 professional cyclists residing in the country. (See Appendix G)

5.3. Action Plan

The lines of action of the marketing plan aims to achieve better results for cycling tourism for the Spanish market.

These lines of action would have to be considered in a comprehensive manner and encompassed within three different lines of action, brand, product and promotion.

5.3.1. Branding

In the tourist branding the idea would be to create a brand of Andorra cycling destination. The branding is the name, term, symbol or design or a combination of

- 29 - them, which tries to identify the goods and services of a seller or a group of sellers and differentiate them from competitors. (Innovtur, n.d.) .

The tourist branding strategy is intended to create a product identity and a brand that conveys what you want to sell of the product, and that is recognized; (Innovtur, n.d.)

The branding strategy of Andorra cycling destination would be to include within this current brand VisitAndorra.

Strategic approach of the creation of the branding of Andorra cycling destination (Andorra cycling)

Target The target would be enthusiastic cyclists, i.e. those who cycle at least once a week.

Mainly Spanish as the campaign is aimed at these cyclists but later could be used for campaigns in other countries.

Key values for - The safety and tranquility that Andorra offers for brand recognition road cycling. Also the good state of the roads. and differentiation. - Large number of mountain passes(routes) in such a small space - Professional cyclists resident in the country and professional cyclists and teams who come to Andorra to do preparation stages. - Complementary activities offered by Andorra. - The good and complete cycling infrastructures

Marketing - Cycling Fair Channels - Events and races. - Social Media - Content Marketing—> VisitAndorra's website with a section "Andorra Cycling".

Visual elements - New logo Cycling Andorra. transmit brand - Use the slogan of “Andorra Territorio Ciclista”. concept.

- 30 - 5.3.2. Products

A product would be anything that is offered to the market to satisfy a desire or need (Serra, 2002).

A serious new product that offers new perceptions to the tourist. The proposal to create a new product that Andorra does not currently offer:

• New Events such as "La bicicleta del Año". • Organization of new amateur races "Haute Route". • Bike Simulators

La Bicicleta del Año

It is an annual event organized by Motorpress Iberica (by the magazines related to cycling that they publish "Ciclismo a Fondo, Bike & Triatlón) that is held between February and March that awards the best components, accessories and bicycles of the year (both road, MTB, E-bike and triathlon).

There are also different tributes and prizes of honour are awarded to people, companies and projects that contribute to promoting the bicycle and the values of cycling. It is an event with brands, professionals and journalists from the sports sector.

In addition to all the diffusion both before and after the event through the magazines Ciclismo a Fondo, Bike and Triatlón. There is also an important diffusion of this event of the brands, award-winning people. In 2018 the event was held in the Auditorium of the Spanish Olympic Committee in Madrid and in 2019 it was held in the Auditorium of Banco Santander in Santander.

Haute Route

Organization of new amateur races "Haute Route". It is an event / amateur race organized of 3 or 7 days that celebrate in different places. The objective of the Haute Route is to deliver events that are the unparalleled 'professional' experience for amateur cyclists, offering top quality services both on and off the bike. (Haute Route, 2019)

The segment that go in these races are cyclists with a high purchasing power and especially foreigners a very interesting profile for Andorra.

It is a product that currently Andorra does not have a 3-day event at Amateur level, both is interesting for attracting tourists directly with the event as the promotion that you can have as a destination cyclist. (See Appendix J)

- 31 - Bike Simulators

Creation of virtual cycling environments; Simulator or video games for static bicycles (bike trainer or bike roller) with cycling routes in Andorra. Later, when these created cycling routes are there, stages of "La Vuelta" and "Le Tour" can be created that travelled on Andorran roads or also routes of "La Purito" or "La Volta als Ports".

There are different brands that offer to the user this product: Zwift, Bkool, Tacx. (See Appendix K)

The objective of trying to negotiate with these brands so that they offer their users routes in Andorra, is the benefit that this product can offer to the country because it makes cyclists known, a part of the product that Andorra offers. This gives to know and to promote the destiny cyclist of Andorra. It could be considered a line of promotion.

5.3.3. Promotion

Promotion is the line of communication through different techniques and instruments that favor the creation of the image as a destination. In other words, the creation of the image of Andorra as a destination for cycling tourism.

It must be specified that the priority market that we want to reach; that would be the Spanish. The target would be the enthusiastic cyclists who are these cyclists who go at least once a week by bicycle.

In the promotion, the objective and main function is to make known and "sell" the destination of Andorra, including the products it offers and also this differentiation.

These lines of promotion can be divided into two techniques, one more traditional and the other online marketing.

5.3.3.1. Traditional Techniques

In the traditional techniques we will use the channel of the cycling fairs.

Cycling fairs

The specialized cycling fairs is a channel that Andorra Turisme started to use to promote Andorra as a cycling destination in 2018 being present in the SEA OTTER EUROPE.

In these fair Andorra Turisme was together with different companies that are part of the cycling infrastructure of Andorra.

The recommendation would be to go to more fairs along with these companies that are part of the cycling infrastructure. The cycling fairs that Andorra should be present for

- 32 - the Spanish market are; Sea Otter Europe, Festibike, BiciSpace, Quebrantahuesos Expo and La Mussara Expo. (See Appendix L)

5.3.3.2. Marketing Online

Online marketing is a technique used for communication strategies and promotion of tourist destinations. Among its main advantages is that it favors the dissemination of the image of the destination and its products in all Internet users worldwide, less expensive and faster than traditional promotion techniques. the marketing we would have two main techniques to carry out this communication that would be the social media and Content Marketing.

Social Media

The social networks would be to continue working with the same social networks that currently Andorra Turisme with the user Andorraworld uses; Facebook, Twitter, Instagram, Youtube.

But creating a new profile in each of these social networks, to promote the new brand Cycling Andorra, only to publish content related to Andorra and cycling.

Content Marketing

Content Marketing is a strategic marketing approach focused on the creation and distribution of valuable, coherent and consistent content to attract and retain a defined audience. (Pulizzi, 2012).The main advantages of this promotion channel; gain visibility the destination, engage your audience, generate trust, help in SEO positioning.

In the case of Andorra the objective is to transmit through;

• Articles that would be found in a blog within the page of VisitAndorra in the cycling section. • Videos that would be in YouTube, in a new profile @CyclingAndorra • Newsletter, to keep track of your followers and users. Articles published in the blog will be sent.

The profiles of social networks with the user @CyclingAndorra would be used to communicate the content published through articles and videos.

The content that would be transmitted would be mainly serious content related to the products and cycling infrastructure that Andorra has and highlighting and attempting to communicate the differentiation that Andorra has with respect to other destinations

- 33 - Examples of content to publish

1 Video Article and video of (Movistar Team professional cyclist and and resident in Andorra) talking about his season as a professional. Also Article about the territory of Andorra for the practice of cycling and the advantages it offers to train.

2 Video Article and video about Movistar Team and its training camp in Andorra. and Commenting on why they come to Andorra to train, the advantages it Article offers them,... .

3 Article Article analyzing some of the cycling hotels in Andorra.

4 Article Article one week after the organization of "La Volta als Ports".

5 Article Article after Andorra's stage of "La Vuelta".

6 Article Article of "3 days of cycling in Andorra", with the three stages carried out (explaining each stage), talking also about the activities you will carry out after each stage like going to Caldea, shopping,... .

5.4. Gant Chart

To conclude, we will classify the different actions if they have to be short or medium term.

The short term actions for the first year would be to start with the branding strategy, and the promotion strategies with social Media, Content Marketing and attending two cycling fairs (Festibike, Quebratahueso Expo),

The actions for the second year would be to attend two more cycling fairs (Bici Space and La Mussara Expo).

The third year when the promotion and branding strategies are working and starting to have positive results we would have to start the product strategies with the Bike Simulator "Haute Route" and the "Bici del Año".

- 34 - MARKETING ACTIONS

SHORT TIME (First Year) MEDIUM TIME (1-5 year)

Branding Cycling Fair (Bici Space and La Mussara Expo)

Cycling Fair (Festibike, Haute Route Quebratahueso Expo)

Social Media “Bici del Año”

Content Marketing Bike Simulators

MARKETING ACTIONS

1/1/20 19/7/20 4/2/21 23/8/21 11/3/22 27/9/22

BRANDING

Cycling Fair

Social Media

Content Marketing

Bici del Año

Haute Route

Bike Simulators

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- 39 - 7. APPENDIX

7.1. Appendix A

Interview

Company: Andorra Turisme SAU

Interviewee: Jordi Torres Arauz

Date: 15/02/2019

Como fue la apuesta de Andorra para el turismo de ciclismo?

La apuesta viene por apuesta general para el Turismo deportivo outdoor en el país. La estragia del ciclismo viene por apuesta general para el Turismo deportivo outdoor en el país. El turismo de ciclismo entra dentro de la estrategia que tiene Andorra para el turismo 365 días al año. Se trabajo como estrategia importante desde hace 6-7 años, con un apuestas general por el turismo de deporte de montaña outdoor de verano para complementar el turismo de esquí, con esta idea de turismo 365 dias al año.

Los deportes de montaña outdoor de verano que empezamos a trabajar desde Andorra Turismo son; el Senderismo, Ciclismo (con las modalidades de ciclismo de carretera i MTB (X-country and Downhill ), Barranquismo, Escalada, vías ferratas. Dentro de estos deportes de verano el ciclismo es que teníamos y tenemos más potencial y el mas importante para poder llevar turistas al país y es el que hemos trabajado e invertido más.

También con esta apuesta por el Turismo deportivo se creo el proyecto “Andorra Sports Training Country”

Cuales son vuestras estrategias para el turismo de ciclismo.

Las principales líneas de estrategia que desde Andorra Turismo seguimos para el Turismo de ciclismo seria;

• Las organizaciones de una etapa de una "Gran Vuelta" ("Le Tour o "La Vuelta")de ciclismo de carretera cada año. Analizando esto, des de hemos empezado a trabajar como una priorida el ciclismo ,a partir del 2012, hemos organizado etapas del Tour o La Vuelta en 7 ocasiones en los últimos 8 años , contando la etapa de la Vuelta del 2019 que tendrá lugar el país. • Un punto que hemos podido conseguir en estos últimos años relacionado con esto a nivel turístico para país. Es la organización de estas etapas, pero transcurridas al 100% en carreteras del principado, como ejemplo;

- 40 - o La Vuelta 2015 (etapa integra al país y una salida). Son dos dias al país. o La Vuelta 2018 (con un llegada en la etapa 19 y la etapa 20 integra al país). Parte importante que teníamos los dos últimos finales en montaña de la Vuelta 2018 y la ultima etapa antes de Madrid. En nivel repercusión, tanto gente que vino al país i a nivel televisivo y prensa fue mas importante porque se decidio el ganador de la Vuelta aquí al país. o La Vuelta 2019; tendrá una etapa integra al país y una jornada de descanso. Es decir dos dias. o El Tour del 2016: tuvimos una etapa con llegada al país, jornada de descanso y una salida del país, es decir tres dias estuvo el tour aquí al país. La celebración de etapas ciclistas tanto La Vuelta y Tour ayudan a conocer la destinación i mejor su imagen pero con esta estrategia de poder tener etapas integras todavía mejora más esta imagen de Andorra como destinación turística para la práctica de ciclismo de carretera. Normalmente estas etapas integras celebradas al país son etapas de alta montaña y normalmente es la “Etapa Reina” del evento. • El patrocinio/ colaboración mediante subvencion a carreras a nivel amateur, tanto de ciclismo de carretera con la Volta als Ports o La Purito, o de MTB/X- country con la Gran Fondo y La Andorra Bike Race. • Colaboración también a nivel económico con Vallnord principalmente con la organización de los “MTB World Cup” or “MTB World Championship. • Creación de un total de 21 rutas de ciclismo de carretera (que son puertos de montaña). Estas rutas están marcadas con señales indicativas para los ciclistas tanto en la salida, llegada y en cada kilómetro de la ruta ( Ofrece la información de los kilómetros y el desnivel que resta hasta la llegada, el desnivel medio % y la altitud). Con la promoción de estas rutas a través de la página web “andorra turisme” y con panfletos repartidos en oficinas de turismo, hoteles, tiendas especializadas al ciclismo… . A partir de este verano, incorporaremos rutas para MTB. • Hace 5 desde Andorra Turismo creamos una app móvil “Turismo Activo Andorra” entre otras funciones con otros deportes a parte del ciclismo, ofrece el seguimiento vía GPS de la ruta. • Conjuntamente con el ministerio de “Ordenament Territorial”, se creó la campaña de “Andorra Territorio Ciclista”. Va en línea con la apuesta de Andorra con el ciclismo, hay cada vez más ciclistas en la carretera. Tiene

- 41 - objetivo de concienciar que cada hay mas ciclistas a las carretera, se tienen que respectar. Conseguir Andorra sea un destino seguro para la practica del ciclismo.

Como trabajáis Andorra como destinación turística para venir hacer ciclismo?

Como ya te he comentado anteriormente consideramos que la apuesta con la celebración de estos eventos internacionales (“Le Tour”, “La Vuelta”, “MTB World Cup), es muy importante para conseguir la imagen destinación de ciclismo, y darnos a conocer. Conseguir que país sea un destinación con mas tradición.

Contactamos con agencias de viajes de viajes o Turoperadores especializadas en ciclismo del país de origen del ciclista para vender nuestro producto en la oferta que ellos tienen de destinaciones. Actualmente estamos trabajando con agencias de UK y Alemania. Este trabajo consiste en que vengan responsables de estas agencias al país, para poder enseñarles nuestro producto y nuestras infraestructuras. También intentamos que estas visitas coincidan con las datas que esta “La Vuelta” o “Le Tour” para ofrecer una mejor imagen. Depende de cada agencias de viajes pero algunas veces ellos venden el producto al cliente y después contratan una agencia especializada del país (que lo organiza es decir, hace el transfer de aeropuerto al país, contratan los hoteles , alquiler de bicicleta y tienen los guías) o directamente con algunos hoteles que también ofrecen los mismo servicios que la agencias de viaje, es decir, la opción de guía y de transfer desde aeropuerto al país, alquiler de ciclismo. Y otras agencias organizan todo ello contratan los hoteles, transfer del aeropuerto al país, alquiler de bicicletas, el guía viene del país origen.

También intentamos vender el destino de Andorra en revistas especializadas en ciclismo, especialmente en Alemania y UK con reportajes del país para vender el destino de Andorra en la práctica de ciclismo. Estos los realizamos de dos maneras distintas. Una primera pagando directamente a la revista para que escriban el reportaje. Una segunda manera es pagando el viajes al reportero para que venga al país y este unos días al país y pueda escribir el articulo.

El 2018 estuvimos presentes en ferias internacionales de ciclismo para vender nuestro producto como en “Sea Otter Europe”, que en el año 2019 también estaremos presentes. En estas ferias vamos conjuntamente con las empresas del país que ayudan a esta infraestructura ciclista posible; Vallnord (estación alberga MTB World Cup, VSL (agencia de viajes del país especializada en ciclismo, Hotansa y Holidays Inn (hoteles con apuesta fuerte con los turistas de ciclismo) y también con algunas tiendas y alquileres de bicicleta.

- 42 - El factor de tener residentes ciclistas al país, como lo valoráis y lo utilizais de alguna forma?

Nosotros como Andorra Turismo no los utilizamos ni como imagen para promocionar al país, ni tampoco cuando venenos nuestro a las agencias de viaje tampoco lo usamos. Al final ellos están país para entrenar, porque Andorra tiene buenas infraestructuras, con buena calidad de vida, tienen tranquilidad, seguridad en las carreteras. Obviamente el tema fiscal que Andorra tiene fiscalidad baja también ayuda a tener estos ciclistas al país.

Pero hacemos una valoramos muy positiva que están viviendo Andorra, porque ellos a través de la redes sociales, y por voluntad propia, publican imágenes de sus entrenamientos, esto nos ayuda a posicionar-nos mejor, es buena promoción indirecta de manera gratuita de Andorra como destinación ciclista.

Haciendo enfasi en esta cuestión; Andorra Turismo no ha utilizado los servicios de ningún de estos ciclistas , ni tenemos la intención de hacerlo en un futuro.

Cuales consideráis que son los principales competidores para Andorra como destinación de ciclismo turístico.

Principalmente consideramos que Francia con los Alpes franceses y Italia son los principales competidores de Andorra. Otra destinación pero en un grado menor es Suissa. Una de las principales razones es la tradición como destino turístico, y que tengan puertos emblemáticos como Galibier o Alpe d’huez en los Alpes Franceses o por ejemplo el Stelvio en las Dolomitas.

Otro factor importante, con la apuesta al intentar internacionalizar el turismo de ciclismo, no únicamente tener turistas españoles y franceses, intentar llevar destinación Andorra en UK y Alemania, encontramos en el caso concreto de turistas Alemanes, es que Suissa, Italia y Francia tienen el factor proximidad, y que pueden llegar si coger un avión, directamente por carretera o tren, tiene la facilidad de llevar su propia bicicleta. Estos ciclistas tienen que venir tienen que coger avión a Barcelona o Toulouse + transfer por carretera desde al aeropuerto al país Con el factor transporte en avión que provoca generalmente la preferencia del alquiler la bicicleta al país de destinación, con el otro factor que muchas ciclistas si no tienen su bicicleta no se encuentran cómodos.

Volviendo al tema que por ejemplo Francia o Italia que tienen símbolos / puertos míticos por los ciclistas, principalmente creados por el Tour o el Giro y por una tradición y que son llegadas míticas, que atraen muchos turistas para realizar estos puertos. Andorra no puede apostar por esto por equitatividad en las parroquias, por

- 43 - esta razón tenemos distintos puertos (“Coll de Gallina”, “La Rabassa-Naturlandia”, “Ordino Arcalis”, “Pal” y “Cortals de Encamp”) que han sido llegada del Tour o la Vuelta y intentamos repartir de manera igualitaria estas llegadas. Tenemos la parte positiva que en espacio muy reducido podemos ofrecer distintos puertos que han llegada de importantes etapas de estas Grandes Vueltas ciclistas pero la parte negativa es que no podemos conseguir y vender de tener este puerto mitico.

7.2. Appendix B

History of Bicycle and Cycling Tourism

Bicycles were created at the beginning of the 19th century and evolved during this century from being inefficient and cumbersome devices at the beginning of the 19th century to becoming elegant and functional means of personal transport at the end of the 19th century. (Watson &Gray, 1978)

The bicycle was invented in 1816 by Darl Dreis, who built the first two-wheel steerable vehicle without pedals or chain. In 1839, Kirkpatrick Macmillan added pedals, which allowed the bicycle to be propelled with its feet without touching the ground, but it was not marketed. In 1860, Pierre Michaux developed the first popular two-wheeled bicycle that was successfully marketed with pedals and revolving cranks on the front wheel.

However, it was not until 1878 by John Kemp, created what he called "Safety-bike" a bicycle with the structure of the current bicycle.

Between the 1880s and 1900s increased demand for bicycles that could be used over longer distances and at faster speeds. Cycling era is known as the "golden age" of the bicycle.

The bicycle was one of the first facilitators for tourist mobility before the popularization of motorized transport in the early twentieth century. Before the bicycle, the mobility of tourists was achieved on foot, on horseback or by train. The appearance of functional bicycles (1878) opened the field to independent tourism giving people freedom given the limited transport options, podium routes beyond where the train arrived. (Tobin, 1974).

However, with the arrival and the increase of motor vehicles in the 1920s, the use of bicycles decreased. Associations such as "Cyclist's Touring Club" or "League of American Wheelmen" tried to maintain this tradition of cycling and cycling. It was not until the 60's that the use of bicycles increased again and until the early 1990's to talk about the "renaissance" of cycling tourism.

- 44 - The increase of cycling in Europe is not only observed in pioneering countries such as France, Belgium, Holland, Germany or Switzerland, but has spread to almost all European countries. For all these reasons, almost all the countries in Europe have opted for this form of tourism.

In conclusion, the link between bicycle and tourism goes back a long time, the importance of the bicycle goes beyond a simple means of transport.

7.3. Appendix C

Typology of Cycling Tourism

Lamont proposed its definition of cycling tourism, with the aim of facilitating the measurement of the impacts of cycling tourism.

Trips involving a minimum distance of 40 kilometres from a person’s home and an overnight stay (for overnight trips), or trips involving a minimum non-cycling round trip component of 50 kilometres and a minimum four hour period away from home (for day trips) of which cycling, involving active participation or passive observation, for holiday, recreation, leisure and/or competition, is the main purpose for that trip. Participation in cycling may include attendance at events organised for commercial gain and/or charity (competitive and non-competitive), as well as independently organised cycling (Lamont, 2009).

Lamont also proposed a typology for Cycling Tourism that identifies five different types. The different types are Independent Cycle tourism, recreational cycling, participatory cycling events, competitive cycling events and passive participation at cycling events.

• Independent Cycle Tourism: In this typology he explains that holidays must have a duration of more than 24 hours. Cycling has to be the central and main objective of the trip, and the bicycle is the main means of transport within the destination region. The mobility in the destination is a key element of the tourist experience, and this mobility is facilitated by adopting the bicycle as a form of tourist transport, allowing experiences in which the tourist is immersed in the landscape and the elements that surround it and must adapt to it. These tourists will first select a wide area as a destination, this wide area will be divided into segments or stages in which cyclists travel between nodal destinations, conceptualized as places of night rest in which some explorations of local attractions can be made.

- 45 - • Recreational cycling: In this typology it includes the excursions of a day with the purpose of going in bicycle. But no precise definition of recreational cycling has been arrived at. There is criticism of whether day trips are a valid sub-segment of tourism, there are authors who have a broader concept of tourism who defend day trips are tourism and are an important sub-segment of cycling tourism

The experiences of focusing on organized cycling events have become more and more abundant, three types can be identified:

• Participatory cycling events: in this case they are commercially organized, non- competitive events that offer opportunities for cycling in a social environment. • Competitive cycling events: These events can last one or several days. It is emphasized that participation is above competition. Sometimes they can be charity events. On competitive cycling events Bull in 2006 did research in the UK found that amateur cyclists make frequent trips to participate in cycling events. He concludes that there is a clear link between competitive cycling events and tourism. (Bull`s 2006) • Passive participation at cycling events: Passive participation at cycling events refers to trips made by spectators to watch professional cycling races. These spectators are mainly connoisseurs and have an interest in cycling. This segment of cycling tourism is becoming more frequent. In this case the main purpose of the trip is to witness the event, there are researches that have identified these tourists often integrate active participation with the bicycle.

Another definition of cycling tourism is offered by Sustrans. Cycle Tourism can be defined as recreational visits, either over night or day visits away from home, which involve leisure cycling as a fundamental and significant part of the visit.

They divided cycling tourism into three main subgroups:

• Cycling Holidays: The main holiday activity is cycling. Commonly the duration of these cycling holidays is from one to three nights. But also be longer than 4 or more nights. And these holidays can either be Centre-based Cycling Holiday (in one place you spend every night) or Cycle Touring Holidays (in this case the place where you spend the nights changes). This type of vacation can be either self-organized by the cyclist himself or organized by an agency. • Holiday cycling: In this case the bicycle is not the main reason for the holidays, but during the holidays away from home activities carried out with the bicycle. In

- 46 - other words, using the bicycle is part of the holiday, but it is not the only type of leisure activity during the holiday. • Cycling Day visits: In this case, they are defined as trips from the cyclist's apartment of residence to places outside the place of habitual residence. These trips can be made by leaving home on a bicycle, or by transporting the bicycle, for a day trip or half a day on a bicycle.

But they also consider that the following activities (Offroad Cycling / Mountain Biking, Club Cycling, Organised Cycle Rides, Sponsored Charity Rides, Schools / Youth Group Cycling, Cycle Racing) are related to cycling tourism but do not categorise and define them.

7.4. Appendix D

Economic Impact

Literature and research studies conclude that cycling tourism generates positive economic impacts for regions and countries. These positive economic impacts of cycling tourism have stimulated the interest of governments at the local, state and national levels in several countries to carry out initiatives to promote cycling tourism. One of the main benefits of cycling tourism is that it helps economic diversification in non-metropolitan areas, and reactivates the economy of rural areas. (Lamont & Buultjens, 2011).

There are numerous actors such as Lumsdon or Insall who say that rural businesses benefit significantly from the visit of cycling tourists to their region, and the main beneficiary sector is accommodation, as can be seen in the study that was made in Austria, on the Danube Bicycle Route. Currently, several cities on the Danube Route depend on cycling tourists as they account for between 60% and 80% of all stays. (Lumsdon, 2000).

Apart from accommodation the other seven business sectors that cyclists spend more money are;

1. cafés, restaurants and pubs; 2. Bicycle rental and equipment shops; 3. Entertainment 4. tourist attractions and activities 5. supplementary transport services 6. Miscellaneous expenses.

- 47 -

Although cycling market valuations are scarce, Sustrans published in 2002 the economic value of cycling tourism in the UK was estimated at £635 million annually. And the same study projected that it would increase its value to £14 billion annually in all European countries by 2020.

7.5. Appendix E

Tourist Market Segment Europe (Traveller profile)

According to a CBI study the general characteristics of the European cyclist tourist profile are: It is a mostly male profile, middle-aged between 40 and 60 years, of a medium and high purchasing power and with studies, likes to be close to nature and enjoy cycling as a sport or physical exercise, usually travel in couples or small groups.

Four main segments can be distinguished; depending on the frequency of use of the bicycle:

• Infrequent leisure cyclist: In this segment they are people who rarely do cycling, it is frequent that they have pedaled before when I was younger but now they are not cyclists. They may not have a bicycle, in case they have one they almost never use it. They are especially interested in quiet roads with little traffic, and also want to enjoy the scenery and tranquility. It is the largest segment, where there are more people. o What does the destination have to have? To offer packages of holidays in bicycle that include cycling routes of low difficulty and with little traffic. Within the package include bicycle rental • Occasional leisure cyclist: This segment are people who bike for pleasure several times in the summer. They are interested in routes between 30 and 40 kilometers on quiet rural roads with little traffic. They usually have and use their bicycle. It is the second largest segment. o What does the destination have to have? Offer routes between 30 and 40 km circular and with little traffic.Promote cycling activities on the ground to attract the same day. Integrate day- trips on bicycles into tourist packages or offer bicycle tourism activities as an optional complement to existing packages.

- 48 - • Frequent leisure cyclist: They are the most frequent cyclists; they cycle in summer once or twice every two weeks and at least once in winter. They own and use their bicycles. They are interested in routes between 40 and 60 kilometres on quiet, low-traffic rural roads. o What does the destination have to have? Offer routes between 40 and 60 km circular and with little traffic.Promote cycling activities on the ground to attract the same day. Integrate day- trips on bicycles into tourist packages or offer bicycle tourism activities as an optional complement to existing packages. • Cycling Enthusiast: This segment are people who cycle weekly in both summer and winter but quizças in winter less frequently. They own and use their bicycles. In one they are interested in longer routes, of more than 60 kilometers. They usually plan the routes themselves from information and brochures. It is the smallest segment but offers interesting opportunities for cycling tourism as they are the ones who go more vacation by bicycle abroad. o What does the destination have to have? It has to offer long cycling routes, and can be either central with a single accommodation or linear by changing accommodation. Adequate cycling infrastructure; such as bicycle repair shops, bike storage places, etc.

Provide information about routes such as distance, unevenness, route profile, topography.

7.6. Appendix F

Andorra Turisme

The management related to tourism in Andorra has been carried out since 2008 by Andorra Turisme SAU.

Andorra Turisme SAU is a public company, created in 2008, responsible for the implementation and control of tourism marketing activities with the aim of improving the competitiveness of Andorra as a tourist destination. The Executive Board is chaired by the Minister of Tourism, currently Frances Camps Torres, and the general director of the entity since 2011 is Betim Budzaku (Dpt. Turisme i Andorra Turisme)

- 49 - This company has the competence to carry out actions related to the tourist product of Andorra in the different ways: (Dpt. Turisme i Andorra Turisme)

• Creation of the tourist product. • Commercialization of the tourist product of Andorra. • Quality and innovation of the tourism sector. • Knowledge management specialized in tourism. • Creation and management of tourism information networks. • Coordination and efficiency of Andorra's tourism value chain.

This is the amount of money that the government of Andorra transfers to Andorra Turisme.

Year Transfer government to Andorra Turisme SAU

2008 8.626.789,32€

2009 8.961.488,02€

2010 8.961.488,02€

2011 8.961.488,02€

2012 14.000.000€

2013 16.231.860€

2014 15.858.520€

2015 16.508.522,34€

2016 16.227.351€

2017 16.227.351€

2018 16.127.351€ (Bopa, Govern Andorra, 2018)

- 50 - 7.7. Appendix G

Professional cyclists resident in Andorra

Andorra currently has 51 professional cyclists residing in the country. (López-Egea, 2019)

Professional cyclists resident in Andorra (López-Egea, 2019)

NAME Nationality / Team NAME Nationality / Team

Cameron Meyer Aus / Mitchelton 27 Aus / Bahréin 1 Aus / Mitchelton 28 Iván García Cortina Esp / Bahréin 2 Aus / Mitchelton 29 Daniel Martin IRL / EAU 3 Aus / Mitchelton 30 Jay McCarthy Aus / Bora 4 Aus / Mitchelton 31 Wooter Wippert NLD / EvoPro 5 Jack Haig Aus / Mitchelton 32 Jonathan Esp / Sky 6 Castroviejo Col / Mitchelton 33 David de la Cruz Esp / Sky 7 GBR / Mitchelton 34 Pavel Sivakov RUS / Sky 8 GBR / Mitchelton 35 Tao Hart GBR /Sky 9 Samuel Bewley NZL / Mitchelton 36 Jonathan Narváez ECU/ Sky 10 Nelson Oliveira PRT / Movistar 37 Iván Sosa COL / Sky 11 José Joaquín Rojas Esp / Movistar 38 COL / Sky 12 Carlos Verona Esp / Movistar 39 Sebastián Henao COL / Sky 13 Esp / Movistar 40 Beñat Intxausti Esp / Euskadi 14 Marc Soler Esp / Movistar 41 Luis León Sánchez Esp / Astana 15 Eduard Prades Esp / Movistar 42 Jan Hirt CZE /Astana 16 Rubén Plaza Esp/Israel 43 George Bennet NZL / Jumbo 17 Academy Ben O'Connor Aus/Dimension 44 Robert Gesink NLD /Jumbo 18 Data Juan José Lobato Esp / Nippo Vini 45 Aus / Katusha 19

- 51 - Petr Vakoc CZE / Deceuninck 46 Dani Navarro Esp / Katusha 20 Esp / Deceuninck 47 Simon Clarke Aus / EF 21 Julian Alaphilippe FRA / Deceuninck 48 Mitchel Docker Aus / EF 22 Koen de Kort NLD / Trek 49 Can / EF 23 NZL / CCC 50 Daniel Martínez Col / EF 24 Jakub Mareczko ITA / CCC 51 Svein Tuft Can / UHC 25 Rory Sutherland Aus / EAU 26

7.8. Appendix H

Demand Amateur Races in Andorra

The demand for tourists in 2018 that has had the organization in Andorra of amateur cycling races has been as follows:

• "La Volta als Ports" there were a total of 1120 participants, of which 439 were Andorrans (39.20%) and foreigners 681 (60.80%) tourists, these foreign participants had companions (801); the total number of foreign attendees who had the race was 1482. We will differentiate from these 1482 foreign assistants, 1302 are tourists (87.85%) and 180 are "Hikers" (12.15%). The median number of nights spent in Andorra by tourists is 1.98. • "La Purito Andorra" there were a total of 2682 participants, of which 248 were Andorrans (9.25%) and foreigners, 2434 (90.75%), these foreign participants had companions (2862), the total number of foreign attendees who had the race was 5296. We will differentiate from these 5296 foreign assistants, 4992 are tourists (94.26%) and 340 are "Hikers" (5.74%). The median number of nights spent in Andorra by tourists is 2.50. • "Gran Fondo Andorra" there was a total of 1285 participants, of which were Andorran 111 (8.62%) and foreigners, 1174 (91.38 these foreign participants had companions (1633), the total number of foreign attendees who had the race was 2807. We will differentiate from these 2807 foreign assistants, 2394 are tourists (85.30%) and 413 are "Hikers" (14.70%). The median number of nights spent in Andorra by tourists is 1.64.

In conclusion these three amateur cycling races had a total of 5087 participants of which 798 were Andorrans (15,69%) and foreigners 4289 (84,31%) tourists, these

- 52 - foreign participants had companions (5296); the total number of foreign attendees who had the race was 9585. We will differentiate from these 9585 foreign assistants, 8688 are tourists (90,64%) and 897 are "Hikers" (9.36%). The median number of nights spent in Andorra by tourists is 2.04.

Of these three races the one that stands out the most is "La Purito Andorra"; it is the one that has taken more foreign participants, it is also the one that has taken more tourists, as much in numbers as in percentage, and it is the one that takes a smaller percentage of "hikers". It is the one with the highest average number of overnight stays.

Average of Participants Foreign Foreign the Total number Participants from Race from participants participants companions of participants Andorra (%) Andorra (%) (1) of the foreign participants Volta Ports d'Andorra 1.120 39,20% 439 60,80% 681 1,2 La Purito Andorra 2.682 9,25% 248 90,75% 2.434 1,2

Gran Fondo Andorra 1.285 8,62% 111 91,38% 1.174 1,4 Total 5.087 15,69% 798 84,31% 4.289 1,2

Foreign Assistants Companions Average (3) "Hikers" Race of the foreign Tourists (%) Tourists Hikers overnight (Participants (1) + (%) participants (2) stay Companions (2)) Volta Ports d'Andorra 801 1.482 87,85% 1.302 12,15% 180 1,98 La Purito Andorra 2.862 5.296 94,26% 4.992 5,74% 304 2,50 Gran Fondo Andorra 1.633 2.807 85,30% 2.394 14,70% 413 1,64 Total 5296 9585 90,64% 8688 9,36% 897 2,04

7.9. Appendix I

Pest Analysis of Andorra

7.9.1. Appendix I.A

Political and Legal

Both national and international policy influence the tourism sector. As far as national policy is concerned:

Andorra has a political stability that favours the moment to carry out policies related to cycling tourism and also the attraction of cycling tourists. Andorra is a parliamentary co-principality, it is the only country in the world with two heads of state. The co-princes

- 53 - are the head of state of Andorra, jointly and indivisibly. They are, in a personal and exclusive capacity, the bishop of Urgell (Joan Enric Vives i Sicília) and the president of the French Republic (Emmanuel Macron). They are the symbol and guarantee of Andorra's independence and equal treatment in relations with neighbouring states. They are arbitrators and moderators of public power and institutions.

Promotion of tourism: through Andorra Turisme SAU, both Private and Public agents try to promote cycling tourism.

Andorra has a low tax policy, which makes it possible to have competitive prices, attract foreign investment. Andorra has an indirect tax (VAT) of 4.5% much lower than Spain's 21% or France's 20% which boosts trade complementary activity interesting for tourists coming to Andorra.

Maximum tax rates: Corporate income tax, Personal Income Tax (PIT), Value-added tax (VAT)

COUNTRY COUNTRY COUNTRY COUNTRY

Andorra Andorra Andorra Andorra

Spain Spain Spain Spain

France France France France

Eurozone Average Eurozone Average Eurozone Average Eurozone Average

International politician: Andorra is not within the Schengen area, but does not require any type of visa.

Andorra is not within the European Union, there is a customs, for the import and export of products have to do some customs formalities using a customs agency that involves an extra cost and slow procedures.

Due to the low tax policy there is a general customs exemption of 900 € (except for alcoholic beverages, tobacco, coffee, which the exemption is for quantities) to pass products to Spain and France.

Andorra is a member of international organizations such as the United Nations since 1993, Unesco since 1999, UNWTO since 1995, among others.

Andorra is not part of the European Union but due to its geographical and political situation, Andorra ensures close cooperation with the European Union. Andorra has a

- 54 - monetary agreement with the European Union which allows it to have the Euro as its official currency.

7.9.2. Appendix I.B

Economic

Andorra's economic activity is mainly oriented towards services, where tourism and trade constitute the fundamental pillars of Andorra's economy. Another important sector for the country is the financial sector due to its significant contribution to Andorran GDP, where the financial and insurance sector represents approximately 21%. Andorra's economic performance is heavily dependent on the external situation, mainly neighboring economies.

Within the limited domestic production of manufactures is supplemented by high imports, to meet domestic demand and tourist demand.

The main indicators to analyze the economic situation of a country would be the GDP, employment rates, per capita income, the price index,... . The economic situation of a country will determine the capacity to generate tourism, will have to see cost of products, expenses of tourists and their consumption.

The current economic scenario is one of recovery and economic growth after the economic slowdown of 2008, which was a crisis that affected many countries and among them also Andorra, but in a way not as serious as other European countries.

Andorra entered a slowdown in 2008 and began this economic recovery from 2012, the main sectors that were affected are the financial, construction and hotel and catering sector which is the sector most related to tourism.

An economic indicator that corroborates this economic scenario of an economic recession in 2008, and from 2012 a recovery and economic growth would be the Gross Domestic Product (GDP).

If we analyze the GDP we can observe that in 2008 there was a fall -7.25%, in 2009 - 5.80%, in 2010 -3.81% and in 2011 -1.94% and from 2012 there was a growth of 2.27% in 2012, 2013 of 0.62%, 2014 of 2.18%. The nominal GDP of 2017 is in numbers similar to those of 2008 first year of the crisis, and a -8.82% respect the GDP of 2007 the highest nominal GDP that Andorra has had. Currently we can observe that the GDP is growing, which we can decipher that the Andorran economy is growing.

YEAR 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Nominal GDP (million €) 3006,75 3140,29 2912,69 2743,65 2639,14 2588 2646,73 2663,01 2720,94 2806,62 2830,66 2885,71 GDP % YEAR-1 4,44% -7,25% -5,80% -3,81% -1,94% 2,27% 0,62% 2,18% 3,15% 0,86% 1,94%

- 55 - We can observe that there is a very similar behavior of the GDP with respect to the number of tourists, and with which we can observe the importance of tourism for the country. We observe that in 2008 the number of tourists fell by -6.31%, in 2009 by - 12.55%, in 2010 by -1.21%, and from 2011 the number of tourists already grew by 7.16%, changed the trend of decline in the number of tourists with respect to GDP a year earlier thanks to the policies of Andorra Turisme and the growth of foreign tourists (other than French or Spanish).

YEAR 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Tourist 2.226.922 2.189.421 2.059.451 1.829.869 1.808.001 1.947.531 2.237.939 2.328.124 2.363.436 2.663.341 2.818.875 3.002.860 % Year -1 -1,71% -6,31% -12,55% -1,21% 7,16% 12,98% 3,87% 1,49% 11,26% 5,52% 6,13%

If we look at the number of employees there was a fall from 2008 to 2013 and from 2013 there was a growth in the number of employees, is also an indicator of the current economic scenario of economic growth.

YEAR 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Number of employees 42.508 42.210 40.968 39.702 38.552 37.301 35.777 35.039 35.331 35.928 36.604 37.705 YEAR-1 -0,70% -2,94% -3,09% -2,90% -3,24% -4,09% -2,06% 0,83% 1,69% 1,88% 3,01%

7.9.3. Appendix I.C

Social and Cultural

Some sociocultural factors that influence:

• Population trends: o There is a trend in the population that is doing more and more sport, as we can see in the Surveys published by the INE. We observe that in 2005 37% of the Spanish population between 15 and 75 years old do sport, while 2010 is 43% and 2015 53.5%. (Consejo Superior de Deportes, 2010) (Ministerio de Educación, Cultura y Deporte, 2015) o There is a tendency of the population to practice cycling, we can see in the Surveys published by the INE "Hábitos Deportivos en España". We observe that in 2010 19.4% of the Spanish population who cycled in sport, in contrast in 2015 is 38.7%. (Consejo Superior de Deportes, 2010) (Ministerio de Educación, Cultura y Deporte, 2015). o These tendencies to practice more sport and cycling, is positive for cycling sports tourism in Andorra. • In tourists there is currently a fragmentation of holidays. There is a tendency to distribute holidays at different times of the year, which increases the number of trips but shorter. This is an opportunity for destinations such as Andorra, a

- 56 - destination that is normally short stays and is close to Spain and France which is an opportunity to attract Spanish and French tourists. • Language: Andorra's official language is Catalan, but it has two co-official languages which are French and Spanish. These three languages are required in most jobs in Andorra. These three languages along with English are also studied in the schools. It is a positive point for Andorra because both Spanish and French tourists can communicate with their own languages and culturally are very similar. Foreign tourists can communicate in English in most places. • Values; The population's awareness of the environment is increased, which makes outdoor sports and natural destinations such as Andorra more attractive.

7.9.4. Appendix I.D

Technological

The main technological factors influencing tourism are means of transport, information technology towards digitalization has affected and transformed or evolved tourism.

Means of transport; Andorra only has access by road, in recent years have been improving access to the country as the works of La Seu-Andorra of the N145 in 2013 (Ministerio Fomento, 2013) or the works to the RN20 to Ariège access by France that were awarded in 2017 and are being carried out (BOPA Nº48- Convenis Internacional, 2017). The Andorra-La Seu Airport (17 km from Andorra) is expected to open for commercial flights in 2019. (La Vanguardia, 2018) These road improvements and the opening of Andorra-La Seu airport are positive for cycling tourism.

Digital technology and with the appearance of the Internet, has changed the way decisions are made, reservations are made, services are contracted, and this change is more important for Spanish and French cyclist tourists. The traditional agencies with the service is reducing revenue and has to offer more personalized and specialized trips, appear the importance of agencies specializing in cycling for German English or Belgian tourist, ...

Also with this digitization, tourist portals of destinations and social networks are becoming more and more important. Andorra has the tourist portal "visitandorra.com" that cyclist tourists can consult information related to stay in Andorra for cyclist, and the portal is available in 9 languages (Catalan, Spanish, French, English, German, Portuguese, Dutch, Italian and Russian). Social networks have more and more users, they are more important for the promotion of the destination. Andorra with the user name AndorraWorld, has profiles in Social Networks like Facebook, Twitter, Instagram, YouTube, Pinterest, TripAdvisor.

- 57 - 7.10. Appendix J

Events currently organizes "Haute Route"

Events currently organizes "Haute Route"

Event Country DAYS

Qingcheng China 3 days

Dolomites Italy 3 days

Stelvio Italy 3 days

Alpe d’Huez France 3 days

Mont Ventoux France 3 days

Alps France 7 days

French Pyrenees France 7 days

Stavanger Norway 3 days

Asheville USA 3 days

San Francisco USA 3 days

Valle de Bravo Mexico 3 days

Nizwa Oman 3 days

7.11. Appendix K

BKOOL ZWIFT TACX

Pecularities Spanish company American company Dutch company with a that has a platform that has platform to platform for virtual to do virtual routes make virtual routes of cycling routes. of cycling. cycling and running. They also sell bike They also sell bike Users will be able to trainers trainers train with cyclists from

- 58 - all over the world and even attend online events and competitions with prizes.

Users In all of 2017 : From January to April No Data 2018: They had half a million cyclists who They had half a used the platform million cyclists who from 195 different used the platform countries. from 195 different countries. The cyclists completed These cyclists 1,306,136 sessions completed 120 million and 27,844,406 miles (193,121,280 kilometers. km), approximately 1 million miles a day The cyclists did the (1,609,344 km). training; 16% routes in the French Alps, (Schlange, 2018) 12% in routes related to the Tour of Spain and 11% routes related to the Giro. (Riaza, 2017)

7.12. Appendix L

Important Cycling Fair in the Spanish Market

Cycling Fair Explanation

Sea Otter Europe Andorra is present since 2018. This fair is organised in Girona at the beginning of June, the 2019 edition will be held from 31 May to 2 June.

- 59 - Festibike It is a cycling fair held in Madrid from 13 to 15 September, this year 2019 will be its first edition. The type of assistant cyclists can be road cyclist, MTB or e-bike.

This fair replaces Unibike another cycling fair that was held in Madrid but was more focused on professionals in the sector and in this new version is broader both for professionals in the sector and for cyclists and amateurs.

The 2017 edition of Unibike had 46,129 attendees. (Ifema, 2017)

Bici Space It's a cycling fair held in Lugones (Asturias) from 7 to 9 June 2019. The type of cyclists can be both road cyclist as MTB or e- bike.

In the edition of BiciSpace 2017 had more than 11,000 attendees and 60 exhibitors. (Ciclismo a Fondo, 2017)

Quebrantahuesos The Quebrantahuesos is the road cycling race with the most Expo participants, they also organize a cycling fair (Quebrantahuesos Expo) the day before and the day of the race. It is held in Sabiñanigo (Huesca) on 21-22 June 2019.

One of the advantages of this fair is that those attending the fair are the participants of the race. These participating cyclists are the target of Andorra as a destination cyclist. In 2018, 8140 cyclists took part in the race. (Quebrantahuesos, 2018)

La Mussara Expo “La Mussara” is a road cycling race with a large participation, also organize a cycling fair (“La Mussara Expo”) the two days before the race. It is held in Reus (Tarragona) on 17 and 18 May 2019 the fair and on 19 May the race

One of the advantages of this fair is that the attendees are the participants of the race. In other words, these participating cyclists are the target audience of Andorra as a cycling destination.

In the year 2019 they will have 7000 participants to the race of which: (Monreal, 2019)

• 88% of men (6160 cyclists) and 12% of women (840 cyclists).

- 60 - • 64% are Catalan (4480 cyclists),

7.13. Appendix M

Communication Strategy

The most common communication techniques used in the tourism sector will be the more traditional ones such as tourism fairs, educational trips (famtrips), public relations and advertising. Among the new communication techniques are the organization of events, fairs, sponsorships and conferences, product placement (referring to the fact that the destinations are present in television, advertising and cinematographic products), fam trip (celebrity trips), mobile Advergames, workshops and Buy workshops.

Tourism promotion should provide consumers with knowledge of the attractions and existing infrastructure differentiating the destination from the competition, inspiring confidence and credibility as well as influencing the choice of destination and the purchase process. It should also disseminate certain information, develop certain attitudes and promote actions that benefit the receiving community. (Morgan & Pritchard 1998).

7.14. Appendix N

Clime /Weather Andorra

The climate is an important factor in positioning Andorra as a cycling destination. Andorra has a high mountain Mediterranean climate with a subcontinental tendency. We can divide the climate of Andorra in three phases (cold, cool, comfortable/warm):

Cold climate that includes the months of November, December, January, February, March and April, a time that is cold and the highest rainfall in the mountain is in the form of snow. At this time Andorra is not an interesting destination for cycling and Andorra is not interested because it already has snow tourists.

Cool climate: it would be the months of May and October. It is a time that begins to be pleasant to go by bicycle. But it is not an interesting destination for cycling, for two main reasons one for the climate of Andorra which is a little cool especially in the early morning, and then because the climate in coastal area at this time is much better.

- 61 - Comfortable/warm weather: the months of June, July, August and September. It is the best time for cycling, it is a very pleasant climate neither too hot nor too cold. It is the time when Andorra is a very interesting destination for cycling tourism. Also a factor to take into account is that in most of Spain and France is a time that is very hot and is not very pleasant to cycle.

Clime Andorra la Maximum average Minimum average Precipitation Vella temperature temperature

January 8ºC 2ºC 86mm

February 8ºC 1ºC 83mm

March 11ºC 3ªC 104mm

April 13ºC 5ªC 181mm

May 18ºC 9ºC 234mm

June 22ºC 12ºC 190mm

July 25ºC 15ºC 142mm

August 25ºC 15ºC 150mm

September 21ºC 12ªC 145mm

October 17ºC 9ªC 108mm

November 12ºC 4ºC 101mm

December 9ºC 2ºC 78mm

- 62 - 7.15. Appendix O

Bike rental

Downhill and MTB bike rental Road bike rental

Viladomat Intersport Viladomat Intersport

Viladomat Massana Viladomat Massana

Commençal

Riders

Pic Negre La Massana

Pic Negre Soldeu

Shusski

7.16. Appendix P

INE “Habitos deportivos en España” survey.

We can observe as we can verify in the Surveys published by the INE “Hábitos deportivos en España":

We observe that in 2005 37% of the Spanish population between 15 and 75 years old do sport, while 2010 is 43% and 2015 53.5%. (Consejo Superior de Deportes, 2010) (Ministerio de Educación, Cultura y Deporte, 2015)

There is a tendency of the population to practice cycling, we can see in the Surveys published by the INE "Hábitos Deportivos en España". We observe that in 2010 19.4% of the Spanish population who cycled in sport, in contrast in 2015 is 38.7%. (Consejo Superior de Deportes, 2010) (Ministerio de Educación, Cultura y Deporte, 2015). These tendencies to practice more sport and cycling, is positive for cycling sports tourism in Andorra.

- 63 - 7.17. Appendix Q

7.17.1. Appendix Q.A

La Vuelta 2018 Global Media Impact

The global media impact of Vuelta 2018 is a race that reaches 189 countries through 330 differents media (television, radio, press, web) and moves 1050 journalists, commentators and photographers. It has an average of 1.5 million viewers per stage in Spain. The digital ecosystem of this Vuelta 2018 has 950k followers in all social networks (+19,8% 2017) of which 350k on Facebook (+9,4% 2017), 340k on Twitter (+14,6% 2017), 207k on Instagram (+49,4% 2017), 43k Youtube (+57,2% 2017). There were 6M unique visitors on the official website of La Vuelta, 15M of videos played by Internet users. Of the in situ viewers go in groups between 3 and 4 people on average, of which 64% are men and 36% are women. (Ciclo21, 2018)

7.17.2. Appendix.Q.B

Le Tour 2016 Global Media Impact

The global media impact of Le Tour 2016 is a race that reaches 190 countries through 100 television channels with a television broadcast 6200 hours, are present 347 different media (television, radio, press, web) and moves 2000 journalists, commentators and photographers. It has 3.5 million average viewers per stage in France and one in three French has seen at least 1 hour of Le Tour 2016 on television. The digital ecosystem of Le Tour 2016 has 6M followers in all social networks of which 2.4M on Facebook and 2.6M on Twitter. There were 36M (29% French, 12% American, 7% British, 5% Belgian and 5% Colombian...) of visitors to the official Le Tour website, 1.4M of official application downloads and 55M of videos played by Internet users. There were between 10 and 12 million viewers on the road (20% of foreign viewers / + of 40 nationalities), usually going in groups between 4 and 5 people on average, of which 61% are men and 39% are women.

7.18. Appendix R

Complementary activities

• The activities for the whole family offered in summer Vallnord, Grandvalira and Naturlandia.

- 64 - o Vallnord: Electric Karting, Downhill Karting, Archery, Routes with Motor Vehicles, Wooden Canals, Rope Park, Big Zip, Jump, Pekepark, Kids Zip, Wooden Games, … o Grandvalira: Golf, Karting, Mont Magic Family Park, Hiking, … o Naturlandia: Tobotronc, Animal Park, Archery, Buggies, Kids Buggy, Children´s Workshops, Farm School. Hiking, Airtrekk, Mini Tubby, Pedals Jeep,… • Thermoludism and relaxation. • The nature and trekking in the mountains • Exclusive and unique shows of "Cirque de Soleil" (all July 2019, with free tickets). • Museums (Carmen Thyssen, Museu del Tabaco, Museu de l'Automobil, ...) and Romanesque churches. • The shopping: which emphasizes the quality of its products and competitive prices. Also the flexibility of the hours of the establishments and a very wide range of products and services.

7.19. Appendix S

Accommodation offer

Andorra registered at the end of 2017, 235 tourist accommodations with 33099 places.

What is general terms since 2003 that is since Andorra collected the accommodation statistics is observed that the total number of accommodations has been reduced from 282 to 235 (47 accommodations 16.67%).

NUMBER OF TOURIST ACCOMMODATIONS 2003 2013 2014 2015 2016 2017 Cyclists accommodation TOTAL 282 243 241 239 235 235 36

If we analyze it by type of accommodation, the reduction of "Shelter" would stand out - 57.14% had 14 in 2003 and 6 in 2017, the reduction of "Hostel" would also stand out - 31.25% had 16 in 2003 and 11 in 2017.

NUMBER OF TOURIST ACCOMMODATIONS BY TYPE 2003 2013 2014 2015 2016 2017 Cyclists accommodation Hotels. 197 175 174 170 167 171 26 Hostel 16 13 11 10 10 11 Shelter 14 7 7 7 7 6 1 Aparthotel. 19 21 22 23 23 20 2 NombreTourist apartment d allotjaments turistic 36 27 27 29 28 27 7 Total. 282 243 241 239 235 235 36

- 65 - If we analyze the tourist accommodations by stars would highlight the increase in 4 and 5 star accommodations; 4 star accommodations have increased 63.16% had 38 in 2003 and 62 in 2017 (increase 24 accommodations), 5 star accommodations have increased 28.57% had 7 in 2003 and 9 in 2017. On the other hand, there has been a large reduction in 1 and 2-star accommodations; 1-star accommodations have been reduced by -72.73% there were 44 in 2003 and 12 in 2017 (reduction 32 accommodations), 2-star accommodations have been reduced by -39.51% there were 81 in 2003 and 49 in 2017 (reduction 32 accommodations).

NUMBER OF TOURIST ACCOMMODATIONS BY STARS 2003 2013 2014 2015 2016 2017 Cyclists accommodation 1 star 44 18 14 15 12 12 3 2 stars 81 49 50 51 51 49 2 3 stars 112 106 108 102 101 103 14 4 stars 38 62 61 62 62 62 14 Nombre5 stars d allotjaments turistics. 7 8 8 9 9 9 3 Total. 282 243 241 239 235 235 36

7.20. Appendix T

Andorra Sports Training Country

The Andorra Sports Training Country is a project that Andorra Turisme created in 2015 to manage the product of sports stays, has the main objective of being an agglutinator and a platform for communication and international management of sports stays.

The Andorra Sports Training Country has the vocation of attracting tourism from sports stays in the markets around Andorra, mainly from neighbouring countries but also from other European countries.

The segmentation of the sports tourism in which Andorra Sports Training Country is directed is very wide, both for the different sports disciplines and for the type of entity. It is therefore aimed at team sports (football, indoor football, basketball, rugby, volleyball, handball, martial arts, water polo, synchronised swimming, ice hockey, wheel hockey and curling), as well as individual sports disciplines (road cycling, mountain biking, skiing, swimming and ice skating).

- 66 - FUTURE STUDIES ESSAY

ESSAY 1: SOCIAL CHANGES

1. What are the barriers to business addressing this problem and how can we overcome them?

One of the main problems that plastic causes is the growth of the production of this material especially in recent years has far exceeded the capacity of waste management to keep up, which makes the oceans and the environment are threatened.

The main barrier that has plastic is that it is a material that is very useful for businesses and facilitates business in different areas and has also transformed the lives of people and in most cases to improve it.

For example, plastics have helped to travel to space have also revolutionized the world of medicine. They have also made cars and airplanes lighter, as a result it also saves on fuel, and reduces pollution. They have also served to prolong the life of fresh foods by being packed in air bags.

A benefit that makes companies manufacture with plastics is that they are cheap and this happened at the beginning of the 20th century when they began to manufacture plastics with oil (which was abundant and cheap). One of the consequences that plastic is cheap is that currently 40% of the plastic produced each year is disposable, that is, they are used as containers destined to be discarded minutes after purchase. In recent years and the last two decades the great growth of plastic production is to be disposable plastic.

How can we overcome this problem; One would be that consumers reduce the consumption of products containing these disposable plastics and that are for single use.

That companies along with scientists, could design new plastics and new plastic products that are biodegradable or more recyclable. The biodegradable plastics; that they are plastics can be biodegraded and, therefore, transformed into natural chemical elements and reintegrated into the natural carbon cycle. A part this type of plastic is manufactured from renewable raw materials, such as corn, cassava, potatoes or wheat.

Other actions that should be taken is more recycling, together with avoiding the unnecessary use of things.

- 67 - 2. In addition to the action mentioned in the article “A Running list of Action on Plastic Pollution”, tell me what other specific action business taken to address this problem.

There are different actions that companies have planned to try to solve this problem of plastic as;

• Multinationals such as Unilever or Pepsico have committed that by 2025, try to make all their containers reusable, recyclable or compostable. • Multinational Johnson & Johnson is switching from plastic back to paper stems on its cotton swabs. • Dasana, which is a company of the Coca Cola corporation, committed to collect and recycle 100% of the equivalent of its packaging by 2030. • In Manila, a store operated by the Plastic Bank of Vancouver, this store pays a premium (amount of money) for the bottles and hard plastic collected by the recyclers. And then the store sells that plastic at a higher price to the multinationals, and these are commercialize their recycled products as socially responsible.

Besides the companies, the states have also taken actions to solve this problem, such as:

• France will prohibit, from 2020, the sale of plastic cups and plates. • Kenya, together with other countries, have banned plastic bags, imposing fines on offenders. • Countries like the United Kingdom, Canada and the United States bans on plastic microbeads in cosmetics.

Apart from companies and states, individuals have also taken action to solve this problem as Ellen MacArthur (British yachtswoman) who has created the basis to promote the vision of a circular economy in which all materials, including plastics, are designed to be reused or recycled, not to be discarded.

One of the main problems is that there are countries that can not collect garbage; with what more garbage trucks are needed, and help to institutionalize that garbage should be collected regularly and taken to landfills, to be recycled. An action that Siegler proposes is a worldwide tax of a penny on every pound of plastic resin manufactured. The money raised could be used to finance garbage collection systems in developing countries, the approximate amount of collection of this tax would be $ 6,000M.

- 68 - 3. As a future business person/leader what steps have you taken, or can you take to address this problem in your community

Mainly those who have the main job, and can take more useful actions to solve this problem are the states.

In my case, if I could take actions as leader of a state:

1. Create a campaign, based on two objectives: • A first objective, would be to show the problem to raise awareness in society, would do so through real images or videos of the problem of the use of plastic. And what can happen if we do not solve it among all. • Another would be explaining small changes that they could make as users, to help, such as; stop using disposable plastics, which have only one use. Buy products that are made of biodegradable plastic or reused…

This campaign could cause society to become aware (I think now the vast majority of the population is not aware and does not know the problem of plastics), and start changing customs.

This could cause that if the users changed the customs and replaced some products that contain the "traditional plastics", polluting by other similar products that are not or have or if they have to be biodegradable or reusable plastics.

The companies and multinationals would adapt to the market and stop making these products with "traditional plastics" for others that do not have plastics or with biodegradable plastics, etc.

This advertising campaign would be carried out, through traditional media such as television, press, advertising brochure, but also on social networks, especially to get this message to the youngest.

2. Also to enhance the above, I would use the fiscal issue; would create some tax benefits for companies that invest in research to find new substitutes for plastic, and also for companies that stop using "traditional plastic" and only use biodegradable plastic or stop using any plastic in all their products.

3. Another interesting action that could be executed is sanctions to companies for different reasons such as; • for companies that use high amounts of "traditional plastics" in their product offerings.

- 69 - • Or for companies that do not take action to reduce the use of "traditional plastic" in favor of substitute products.

This action could also help reduce the use of plastic.

ESSAY 2: THE FUTURE OF MARKETING

7 Marketing Trends To Budget For In 2019

I believe that the financial sector complies with these seven marketing trends for 2019. I have chosen as reference to analyze "Banco Bilbao Vizcaya Argentaria S.A." (BBVA).

1. Content has become core to marketing

For BBVA, content marketing is an important part of its strategy and we can observe it in the publication of content around innovative services. To raise awareness of this new way of doing banking where clients are able to carry out many of the operations themselves. As the Forbes article comments, this related to the sales team (new way of selling the BBVA product), helps customers to know the product better, familiarizing themselves with financial issues. (BBVAOpen4U, 2014)

Currently the use of social networks, such as Linkedin, Facebook and Twitter, has facilitated the best marketing of written content and digital format. Within a study, in 2015, BBVA is the bank that publishes the most content. This content marketing helps to gain confidence. (Lowpost, 2016)

Within this marketing content BBVA also uses videos on YouTube (Marketing News,2018)

2. Chatbots will offer benefit beyond custumer service.

The first function for which chatbots were used in banking is customer service but also allowing bank employees to improve, personalize and further sophisticate their relationship with it, thus creating a better customer experience. (BBVA NOTICIAS "Chatbots", 2018)

With the 'chatbot' constantly learning from each interaction and the 'big data' providing more and better information, the algorithms behind the robot will be increasingly precise, and the customer experience more personalized. (BBVA NOTICIAS "Chatbots", 2018)

- 70 - BBVA launched its chatboot in June 2017. Customers can consult financial information. Subsequently, it has incorporated new features and services such as; sending money from mobile to mobile, in others.

3. Alternative search formats are on the rise.

Among other alternative search functions, the BBVA has incorporated Google Assistant that allows different functions, through the voice as to ask where the nearest ATM is, credit card contraction. It has also created an app "BBVA Valora View", it lets you know if in that environment there is a home for sale or rent that is in Idealista, by pointing with the camera of your phone to a home. . (BBVA NOTICIAS, 2018)

4. Marketing and PR will continue to overlap.

Public relations and marketing at BBVA will continue to overlap. The general guidelines followed by public relations in the banking sector and that BBVA carries out are aimed at a more attractive, useful and familiar content.

The main message they seek is to inspire confidence in society and customers. To advise this trust they are based on; Educate and properly inform people about the scope, conditions and policies of banking entities through Content Marketing. Invest constantly towards an improvement in the service of attention in terms of solving problems by reducing the time of procedures through the chatboots. Be interested in the solution and eradication of community problems (Kovács Halay, 2016) through education scholarships such as BBVA "Candidato Blue". (BBVA NOTICIAS 'Candidato Blue', 2019)

As BBVA Marketing Director of the BBVA Carlos Ricardo says, recovering the trust of customers means "products that are simpler, direct and adapted to the customer. He has to feel comfortable, to be sure that what he is acquiring is safe, transparent, and above all, that he adjusts to what he demands and needs. (L. Junco Expansion, 2019)

5. Security and data privacy will be major concerns.

The issue of online security is a very important issue for BBVA, as the bank is being transformed, and this digital banking is growing. Transmitting this security online is fundamental, and for the time being BBVA is one of the banks that is doing it better, thanks this has received both 2017 and in 2018 the prize for the best online bank in Europe according to Forrester Research. It stands out that one of the strengths of BBVA verified by Forrester is the security (Pedraza, 2017). Not only in the access to the web or app (possibility of biometric identification with fingerprint, iris or face) and in the confirmation of operations, also in the prevention of fraud; since it offers the

- 71 - possibility of restricting the operation of accounts, cards and all those savings products and also reporting possible fraud, among other things. (BBVA News security, 2019)

For BBVA, the protection of customer data is an important issue. It should be noted that BBVA has the seal of the "Electronic Certification Association" is the first financial institution adhering to its Code of Ethics for Data Protection on the Internet. (BBVA Seguridad, 2019)

6. Personalization and authenticity will separate successful marketers from those who just contribute to noise

One of the strong points of banking and BBVA that has had for the personalization and authenticity of messages is this transformation towards digital banking. is the possibility of obtaining and analyzing data in real time, take advantage of this "Big Data" with automated analysis. (Servicios Globales de Marketing, 2016)

Continuing with the personalization and authenticity of the messages, you are using Inbound marketing (aligning the relevant contents with the purchase cycle of current and potential customers to influence their decision making in the phases of: discovery, consideration and decision). (Woko, 2016)

BBVA uses this inbound marketing through the blog and email marketing. Through blog shows relevant and attractive information for the user, is segmented by the interests of the user. And the people are the protagonists of the message, not the bank and its services. (Woko, 2016) Through e-mail marketing, we offer personalized products adapted to the needs of each client. (Servicios Globales de Marketing, 2016)

7. Less will be more

BBVA are complying with the least is more and launching the message is clear and invest unwrap the strategies used.

The main strategy of BBVA is to invest in digital banking as a result of this we can find, for example:

- BBVA is developing investment in ChatsBots as it shows that they have been the first to launch the Google Assistent function through the voice in Spanish. Another example that demonstrates the commitment to chatboot is the financing that BBVA has offered for the Charlie project (it helps people with little knowledge about finances to manage their money more easily) fulfills the idea of the clients of being familiar with finance topics. (innovaspain, 2019)

- BBVA is developing issues better Security and data privacy as evidenced by the award received for best digital banking in Europe by Forrester Research. Or comply

- 72 - with the Code of Ethics of Data Protection on the Internet of the "Electronic Certification Association (ACE)".

The new trend

A new trend that can be fulfilled in marketing in the Banking sector is Video Marketing.

There is a tendency that people prefer to consume video content that in articulations, you can use through these videos to simplify the message and in a more effective way and close all the types of services they offer.

The BBVA has already started using this Video Marketing, through Youtube. (Marketing News,2018)

References BBVAOpen4U. (2014). El marketing de contenidos: un método de confianza para atraer clientes. [online] Available at: https://bbvaopen4u.com/es/actualidad/el- marketing-de-contenidos-un-metodo-de-confianza-para-atraer-clientes [Accessed 17 Feb. 2019].

BBVA News security. (2019). BBVA provides customers with greater mobile banking security options | BBVA. [online] Available at: https://www.bbva.com/en/bbva-provides- customers-greater-mobile-banking-security-options/ [Accessed 17 Feb. 2019].

BBVA NOTICIAS. (2018). Once cosas que los clientes de BBVA pueden hacer con su teléfono Android | BBVA. [online] Available at: https://www.bbva.com/es/once-cosas- clientes-bbva-pueden-telefono-android/ [Accessed 17 Feb. 2019].

BBVA NOTICIAS "Chatbots". (2018). ‘Chatbots’ y ‘machine learning’: descubre la nueva banca. [online] Available at: https://www.bbva.com/es/chatbots-machine- learning-descubre-nueva-banca/ [Accessed 17 Feb. 2019].

BBVA NOTICIAS 'Candidato Blue'. (2019). BBVA lanza 'Candidato Blue', una plataforma para optar a becas de estudios en EE. UU. | BBVA. [online] Available at: https://www.bbva.com/es/bbva-lanza-candidato-blue-plataforma-acceder-becas- estudios-estados-unidos/ [Accessed 17 Feb. 2019].

BBVA Seguridad. (2019). Seguridad BBVA - Protección de Datos. [online] Available at: https://www.bbva.es/sistema/meta/seguridad/proteccion-de-datos.jsp [Accessed 17 Feb. 2019].

- 73 - Innovaspain. (2019). Propel Venture Partners (BBVA) invierte en el chatbot inteligente Charlie - innovación en español. [online] Available at: https://www.innovaspain.com/propel-venture-partners-bbva-invierte-en-el-chatbot- inteligente-charlie/ [Accessed 17 Feb. 2019].

Kovács Halay, I. (2016). Las relaciones públicas en el sector bancario. [online] NEGOCIOS & MANAGEMENT. Available at: http://negociosymanagement.com.ar/?p=8740 [Accessed 17 Feb. 2019].

L. Junco Expansion. (2019). BBVA: "El cliente es fiel si esta satisfecho con el servicio". [online]Available at: http://www.expansion.com/2013/08/09/directivos/1376070933.html [Accessed 17 Feb. 2019].

Lowpost. (2016). Los bancos y el Marketing de contenidos: ¡te lo contamos!. [online] Available at: https://lowpost.com/blog/banco-invierten-branded-content/ [Accessed 17 Feb. 2019].

Marketing News (2018). Los contenidos de Vodafone y BBVA siguen triunfando en YouTube. [online] Available at: http://www.marketingnews.es/medios/noticia/1117037028405/contenidos-de-vodafone- y-bbva-siguen-triunfando-youtube.1.html [Accessed 17 Feb. 2019].

Pedraza, J. (2017). Por qué BBVA tiene la mejor banca ‘online’ de Europa. [online] EL PAÍS. Available at: https://elpais.com/economia/2017/12/21/actualidad/1513874320_150796.html [Accessed 17 Feb. 2019].

Servicios Globales de Marketing. (2016). Marketing digital en el sector bancario - Servicios Globales de Marketing. [online] Available at: https://www.marketingsgm.es/marketing-digital-en-el-sector-bancario/ [Accessed 17 Feb. 2019].

Woko, E. (2016). 7 ejemplos de Inbound marketing que debes conocer. [online] Woko Agencia Estrategia digital. Available at: https://woko.agency/ejemplos-inbound- marketing/ [Accessed 17 Feb. 2019].

- 74 - ESSAY 3: THE FUTURE OF WORK

1. Do you think new technological progress will fundamentally reduce the need for human labour in the next few decades?

With technology in the coming decades will cause that surely there will be less work or that the work of humans will change (Knowlede society). Humans will stop doing all this arduous and monotonous work.

This revolution with technology has already begun in recent years as for example with the creation of computers, servers, Internet creation etc ... Almost 200 years ago that people were already talking, "was the technological unemployment is coming" but has not been thus, these technological revolutions have not reduced the work, but they have changed.

But as Andrew McAfee comments in the video, this time may be different because now the machines have begun to show skills that they had not shown as they understand, speak, see, listen, write, respond, do not let new skills acquire.

As I mentioned earlier, we are now creating a world where there will be more and more technology, and less and less work. A world that Andrew McAfee in the video calls "The era of the new machine."

But Andrew McAfee says that this technological progress is good news for two reasons:...

1- Technological progress allows to continue increasing more production and at the same time reduce the price. This is abundance, which is what we want the economic system to provide. 2- Androids start doing our work we will not have to do it anymore. The monotonous and arduous work will be eliminated.

In conclusion with this technological progress is going to a society where the creators and inventors, designers, get more strength. We can say that this society of knowledge is going where what the companies look for (what the

- 75 - workers have to contribute) is new knowledge, new ideas, etc., and not the strength of the workforce, as previously happened.

2. How might this be a problem?

The main problems and challenges are quite related, in what is the good news of this technological progress in the previous question. We can divide into two main problems:

1. First problem would be economic. Where it is difficult to offer the strength of work, in an economy full of machines and technology. We can solve the problem if we analyze the statistics in the last 20 years we see: a. They raise the return on capital (business profits). Now the highest point in all history. b. But they lower labor yield (total wages). Now lower point.

Good news for employers but they are not because with this reduction in wages, is reducing and almost eliminating this middle class of workers, which is needed to sell products companies. It is at a time when inequality and polarization is growing.

2. Second problem would be social. It would be related to what was mentioned above, about inequality.

This has to be explained as explained by Andrew in the video with the example of two different people:

a. Person X - would be a professional with university studies, who work as a lawyer or engineer, .... b. Person Y; would be a person without university studies, work as a dependent or worker, ...

If we go back to the 1960 years before the technological technology was progressively injected, X and Y had quite similar lives. But with this introduction of technology the life of X and Y change:

c. Person X has retained a full-time job, but not Y.

- 76 - d. Person "Y" has sometimes left the economy completely, while X rarely e. We can observe how Person "Y" is separated society as it has stopped voting, started to go to prison more frequently. We can relate to the phrase of the Voltaire "Works birds to man from three great evils: boredom, vice and need."

3. Do you think the introduction of a Universal Basic Income might help resolve this problem?

I think the introduction of "Universal Basic Income" could be a solution to the problem. The universal basic income is a periodic income paid by the State to each citizen belonging to that community as a right of citizenship, without any condition.

As Robert Reich says, Universal Basic Income does not tell people where to spend the income, but there are experiences that say that giving money to people as a way to solve poverty works. In the studies it is found that people do not stop working, nor spend on alcohol and drugs but use it to increase their profits.

Also results of the Universal Basic Income experiment in Dauphin (Canada), which proved that people became richer. But also people became smarter, healthier, improved school performance, decreased the rate of hospitalization, decreased domestic violence, also decreased the mental health problem. And the most important thing that people continued to employ, only reduced student jobs because they prolonged their study time. It works as Venture capital for the people

The experiment they did to India; who analyzed the IQ of the workers who collected sugarcane. You have to know that most of these workers' income comes when there is a harvest. As the study shows that the IQ before harvest, which is when poor sonmas is 14 points lower than after harvest when they are rich. This experiment rectifies that having an income causes us to think that we

- 77 - are more intelligent and that the "Universal Basic Income" can work as a solution to the problem.

In conclusion this Universal Basic Income can help people, it has to be more liberated, because it has a fixed salary at the end of the month, it can lead a better life. Focus more on innovation, on the acquisition of new economic training, which will be essential in the future. Also another relating the previous one is to have an educational system with the appropriate skills, which the Universal Basic Income can help as you can observe in the Dauphin experiment that in its results it stands out that the school performance improved.

4. If you never had to work again, what would you do?

I believe that humans have to be busy doing homework, so it is difficult to imagine never to work again. In the end you would have to perform different tasks, think about how to improve society, creative tasks, imagination tasks, and inventiveness. It is what is defended with the Universal Basic Income.

ESSAY 4: THE FUTURE OF MANAGEMENT

1. Which are the main challenges firms faces nowadays? How do you think these might affect your professional career?

Mainly we can summarize that according to Gary Hamel, companies have to face three important challenges today:

• The acceleration of changes. Currently companies must change and adapt to changes at a more important speed, and previously they had not. And we can see that every day it is more difficult for many companies to stay ahead of the curve of change. • Competitiveness. Companies are facing a competitive scenario, without barriers that protect the leading and dominant companies in the sector, without restrictions of emerging companies, and these emerging companies may question the dominance of traditional companies in the sector.

- 78 - • Knowledge is becoming a "commodity". Companies that day is more difficult to survive simply by maintaining unique competencies. In the present knowledge and skills tend to circulate freely in a global market, with consequently impossible to create and maintain unique skills for a long time. The most important would be to protect the company to make innovation the work of all workers every day.

We have to consider these challenges in my professional career, since we have to constantly innovate in the company. We have to see analyze the current competitors and new competitors that may arise. Try as a worker to continuously incorporate new knowledge and if I am a manager try to find people prepared and talented that can bring new knowledge and ideas to the company

2. How do we create organizations that are truly “fit for human beings”?

According to Hammel we have tenomos build organizations prepared for human beings. Organizations that are truly "fit for human beings." These organizations prepared for human beings are also organizations prepared for the future.

Hamel explains that this is because human beings are incredibly adaptable to all the situations, circumstances and problems they have to face throughout their lives, and are a source of innovation, creativity and passion that is to say, people have all the qualities and characteristics what organizations lack. But with this traditional management model, the role of smoke within companies has been reduced, that of semiprogrammable robots. This prevents humans from developing their potential and their contributions, by squandering one of the main sources of differentiation and progress of organizations.

3. Why is it necessary to change the “classical” management principles in order to adapt them to today’s fast-changing business environment?

- 79 - It is necessary to change the classic management model because these classic management models that opt for optimization over innovation and continuity over change, can not face the challenges that currently exist.

For example, at the moment the center of change of every company is in people; in the use of his talent, in his ability to visualize and execute solutions to complex problems. In the traditional management model, that talent and those capabilities are not developed optimally.

The keys on which this new Management is founded, which replaces the traditional one, are the values, responsibility and humanization of companies to develop the new instruments with which to transform reality.

Also the new management needs this ability to adapt. An adaptable company, configured to manage continuous changes in a non-traumatic way.

Also the new management training for discontinuities. The fear of change and the unknown establishes bureaucratic and hierarchical systems that continuously stop and kill business models. Companies have to train the workforce to constantly resolve questions and detect opportunities to enter. Necessary to innovate constantly.

4. How is it possible to build organizations that have an “evolutionary advantage”?

The evolutionary advantage would be the ability of companies to evolve to be able, not only to react to the changes of the vertiginous environment, but to anticipate them. Otherwise the evolutionary advantage would be the capacity for deep transformation of the company, it would be a companion of the competitive advantage.

According to Hamel for the construction or creation of this evolutionary advantage for organizations;

- First of all it would be necessary to pass from the competitive advantage to this evolutionary sale.

- 80 - - Then it would be necessary for the company or organization to be adaptable to be able to capture these new opportunities that may arise in the future. - Also for this evolutionary construction would also need the human part of the organization ie organizations as we have not only have to be prepared and fit for the future but also for people / human beings. - Finally, also related to people, organizations have to take advantage of these human capacities that are important for innovation and this creative economy.

5. To what extend do you agree with the mantra: “Employees first, customers second”?

The complete sentence that says about “the employees first, the customers second” would be that; “Employees come first, customers second and shareholders last”.

I would agree with the phrase that is to say the first thing is the workers, because they are the ones who have to create the product, innovate, manufacture, analyze the market, manage the company, promote the product, obviously sell.

So then have a work motive, involved with the proper functioning of the company, because you will perform your tasks better with more efficiency, for example one of the departments where I think you can show better this would be in the sales department, where a work has that going to sell a product a service to another, if it is motivated and involved, will make more efforts in trying to get the customer to buy the product, surely the client will also be more satisfied with the treatment received and will also carry out an after-sales service with more involvement and better.

This means a better motivation and deal with the workers, the most normal thing is that it implies better functioning of the company, more sales, that the client is also more satisfied. With a better functioning of the company, more

- 81 - efficient and more sales would mean more benefits, with the conclusion that shareholders are happy too.

In conclusion this statement makes a lot of sense; First you have to start with the workers (better functioning of the company in general, more income, bring a better deal with the client), then with the client (already with the best work done by workers, the client will be more satisfied but if still what powers the client part, can still increase more sales and therefore revenues) and finally the shareholders because with the improvement in workers and customers that leads to more income and more benefits they will already be satisfied.

ESSAY 5: INNOVATION AND TECHNOLOGY

1.How would you affect the lives of a billion people positively in 10 years? What big world problem would you try and solve? If you need inspiration, check the Sustainable Development Goals

My idea would be to try to solve the issue of quality basic education in school- age children between 6 and 16 years globally, especially by improving the problem that has the least developed countries, especially the area of Africa and also South Asia.

There are UNESCO studies that say that there are a total of 263 million children who are not in school. If we break down this total figure of 263 million children we find that 61 million are children of primary school age (6-11 years), 202 million are children of secondary school age (12-16 years).

This solution of problems would not only affect these 263 million people, because an improvement in education is one of the principles for the development of the country in all aspects, then indirectly this improvement would positively affect many millions more people.

Education is one of the most powerful instruments for reducing poverty and inequality and lays the foundation for sustained economic growth. If we go back in history more than 2300 years ago the philosopher Platon, already recognized the importance in knowledge and learning and wrote "If a man neglects education, he walks lame to the end of his life", this could be applied in these

- 82 - areas as Africa, which does not invest or cannot invest in education and cannot develop.

2. How have people tried to solve this problem until now? Give specific examples of the best solutions right now, and why they’re insufficient.

An example to solve this problem was made by Bridge International Academies. Bridge is a U.S. educational organization that owns a chain of private, for-profit schools targeting disadvantaged families in an increasing number of African and Asian countries. This organization is supported by the World Bank, Bill Gates (Microsoft), Mark Zuckerberg (Facebook) and some other magnates.

The Bridge model works with an enrolment of 5€ per month and technology has a fundamental importance, since through technology teachers implement standardized lessons with tablets in hand. Bridge hires education experts to write the content, but the role of classroom staff is simply to deliver that content to the classroom. These classroom staff are people who do not have college degrees, it allows them to reduce costs, and what they do is provide pre- determined content on a digital tablet to students.

Also to keep tuition prices low, Bridge needs very large classes with an ideal ratio of 40 to 50 students, the physical infrastructure is modest, which can be lifted in a few days.

But this solution has problems mainly for these reasons;

• Teachers are just reading robots and it has been shown that this is not the best way for children to learn.

• Tuition fees are not as cheap as they seem, as €5 a month is very high and prohibitive for most impoverished families. Because taking into account that a high basic salary can be around 70€ per month if for example a family has to send two children to a Bridge academy would represent 14% of the monthly income, not counting transport or food.

• Massive privatisation of the education system. Governments are the ones who have to guarantee good quality public education for their citizens. The outsourcing of education altogether is a serious violation of human rights in every rule.

- 83 - 3. Why is it so difficult to solve?

It is difficult to solve this problem because first education would have to be a public service and therefore it would have to be the national governments of each country which would have to solve this problem. The main problem for that reason they cannot solve it, it is as they are countries without developing, they do not have first of all the economic capacity, of infrastructure, logistics, to solve this problem. There is also the problem of lack of prepared people, teachers, to offer classes, etc.

You need the help of international organizations, countries and if you could count on the help of large companies much better, offer grants and donations to invest in education.

4. What would you do differently? How could you use different exponential technologies?

The main idea would also be to use technology as Bridge did, but not with tablets but, use virtual reality and the Internet, which helps us from the projects that there are currently to get Internet to these areas more disadvantaged than it has; Google Loon (Google), Internet.org (Facebook), Outernet (MDIF). The idea would be that through virtual reality these African children could offer some classes, in real time by which the student could interact with the teacher, which would be offered in different schools in different developed countries in Europe (it would not affect the time change). Also others that are "recorded", here the student can not interact with the teacher directly, but that later, you can transmit their doubts.

The main differences for example with Bridge;

• It is that this free project for students would need the help of grants from international organizations and countries. It would also need the help of developed countries to offer classes with their teachers from educational institutions. And also the help of big technological companies with the facilitation of this technology in order to make the project possible. • The possibility to have prepared teachers, to have interaction, better way that the students have.

- 84 -