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Destination Norway

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Destination Norway The government’s tourism strategy Destination Norway National strategy for the tourism industry 2 The government’s tourism strategy Destination Norway National strategy for the tourism industry 3 Foreword The tourism industry is one of the world’s fastest Increase the number of year-round jobs and develop growing business sectors, and Norway is well placed more robust companies, particularly in rural areas. to capture its share of this global growth. In view of the Increase the number of unique, good-quality experi- tourism industry’s potential for future value creation, ences that attract more guests with a high willingness the natural advantages that Norway has, and the indus- to pay. try’s considerable importance to the rural economy, the Norwegian government has chosen to give a high These objectives can be achieved through long-term priority to the sector. Consequently, the government and effective efforts to boost the tourism industry, intends to pursue a particularly vigorous policy for the promote sustainable development and increase col- promotion of tourism in Norway. laboration. Norway has the wherewithal to offer extremely The tourism industry is one of the business sectors attractive tourism products. The Norwegian land- that will contribute to Norway’s future economic suc- scape is unique, and forms the basis for a wealth of cess. The government’s tourism policy will contribute experiences. By exploiting our natural competitive to the development of a highly productive, knowledge- advantages and providing an exceptional, high-quality based industry. experience, Norwegian tourism companies will be able to justify the price level necessary to increase the The Royal Norwegian Ministry of Trade and Industry sector’s profitability. will work closely with the tourism sector on the imple- mentation of this strategy. Many important players within the tourism industry have already developed products and methods of collaboration whose example points the way. The gov- ernment’s strategy is entitled Destination Norway. We 10 April 2012 have formulated three main objectives for our efforts in the field of tourism: Trond Giske Increase value creation and productivity within the Minister of Trade and Industry tourism industry. 4 Photo: Terje Borud/www.visitnorway.com Terje Photo: 5 Contents Photo: C.H./www.visitnorway.com 1 A knowledge-based strategy . .8 4 A coordinated tourism policy . 32 1.1 New knowledge and new experience . .8 4.1 Policy design. .32 4.1.1 Strengthening the coordinating role of 2 Developments and key trends the Ministry of Trade and Industry . 32 in the tourism industry . 16 4.2 Operationalisation . 34 2.1 Global developments. .16 4.2.1 Innovation Norway’s engagement in tourism . 35 2.2 Developments in Norway . 18 4.2.2 Other public administrative bodies of major importance to the tourism industry . 39 2.3 Key trends globally and in Norway . 20 4.3 The authorities’ collaboration with the tourism industry . 39 3 Tourism policy goals and focus areas . 22 4.4 Knowledge as the basis for tourism policy . 41 3.1 Active tourism policy . 24 4.5 Measures to establish a more coordinated 3.2 Tourism policy goals. .24 tourism policy. .41 3.2.1 Sustainability as a premise . .24 3.2.2 Increased value creation, qualitatively good 5 An improved tourism structure. 42 experiences and vibrant rural areas . 25 5.1 The current structure of tourism 3.3 Stronger coordination gives better results . 26 management . 44 3.3.1 Public sector coordination . 26 5.2 The challenges posed by today’s structure . 44 3.3.2 Coordination in the tourism industry . 27 5.3 An organisational model for tomorrow’s 3.3.3 Coordination between the authorities tourism industry . 45 and the tourism industry . 27 5.3.1 Same structure nationwide . 46 3.4 New priority areas . 29 5.3.2 A clear allocation of roles and responsibilities . .48 5.3.3 Implementation of the structural changes . 48 5.4 Measures to organise the tourism industry more effectively . 49 6 Photo: C.H./www.visitnorway.com Photo: C.H./www.visitnorway.com 6 Destination and experience 7 Sales and marketing . 80 development. 50 7.1 Norway’s reputation. .80 6.1 Increased collaboration within the tourism 7.2 Marketing Norway as a destination . .82 industry and with other business sectors . 50 7.2.1 Use of existing awards when marketing 6.2 Natural and cultural heritage as the basis Norway . 87 for value creation . 55 7.3 Coordination between marketing activities 6.3 Competence . .62 and the sales organisation . 89 6.3.1 Year-round jobs preserve competence . 62 7.4 Measures to improve the marketing and 6.3.2 Recruiting for education and business . 62 sale of Norway as a tourism destination. 90 6.3.3 Competence enhancement . 64 6.3.4 Innovation and entrepreneurship in the tourism industry. .66 6.3.5 Research. .67 6.4 Quality assurance and quality enhancement . 69 6.5 Collective benefits . 70 6.6 Access to capital . .73 6.7 Accessible destinations . 74 6.7.1 National Tourist Routes . 74 6.7.2 Greater opportunities for the use of public transport in a tourism context . 75 6.7.3 Air travel and tourism. .76 6.8 Svalbard . 77 6.9 Product and destination development measures . 78 7 1 A knowledge-based strategy The government is launching a new strategy for the Tourism industry billion, Oxford Research (2009) tourism industry entitled Destination Norway. The Oxford Research has analysed how much the Norwe- strategy is based on new, empirical and documented gian tourism industry receives in public funding. The knowledge, and concentrates the focus of public sector analysis shows a considerable increase in the period efforts to reach the government’s overall objectives. 2004–2007. NOK 693 million was allocated to the tour- The term sustainability is used throughout, and its ism industry in 2004. The corresponding figure in 2007 meaning defined in the new strategy. The term sustain- was NOK 1.085 billion – a nominal increase of 56 per ability includes protection of the environment, social cent compared with 2004. State agencies provided NOK development and economic value creation. 524 million, with grants from Innovation Norway making The government’s political platform states that it up around 60 per cent of state funding. Local authorities has chosen to continue its emphasis on the tourism allocated NOK 322 million to the tourism industry, while industry because Norway is particularly well placed to county councils and county governors allocated NOK succeed in this area, and because the industry is ex- 219 million and NOK 21 million respectively. Seen in tremely important to business development through- relation to the industry’s share of the national economy, out the country. However, in order for a special grants to this sector are given a high priority. emphasis on the tourism industry to be profitable from The largest share of the funds was allocated to the a socio-economic point of view, the industry’s earnings category “profiling of Norway or the region as a tourism capacity must be adequate. This requires systematic destination” (NOK 318 million). Of the NOK 755 million cooperation, innovation and investment. that can be broken down by county, the tourism indus- Since the government published the previous try in Nordland was the largest recipient of public funds national tourism strategy, the industry has been (NOK 95 million). The regional development aspect of through a financial crisis and a volcanic-ash crisis the funding is plain. Administrative costs associated with that have created new challenges and given us a new grants to the tourism industry totalled NOK 117 million. understanding. We have also gained new insight and Since the data was collected by means of a ques- expertise through the measures and activities that tionnaire, care should be taken when interpreting the have been implemented, e.g. pilot projects that give us findings. Furthermore, it is important to note that the practical experience and identify new opportunities. data collected is restricted to direct public appropria- We have also been in regular contact with industry tions. The public administration assists the tourism stakeholders regarding the sector’s requirements and industry in many ways other than direct financial how public sector efforts can be targeted as accurately allocations. For example, local authorities assist the as possible. tourism industry through the development of infra- The new strategy is based on knowledge. It has structures and services. The state sponsors a variety been drawn up on the basis of what we know about of cultural activities, which represent important tourist the needs of the tourism industry and the opportuni- attractions, while government transport policy is also ties facing it. Knowledge will also be one of the most important for the tourism industry. important input factors for tomorrow’s competitive tourism industry. A knowledge-based Norway, Torger Reve and Amir Sasson (2011) 1.1 New knowledge and new experience In the study “A knowledge-based Norway”, the tour- In recent years the Ministry of Trade and Industry ism industry was one of 13 sectors to be analysed. The has acquired new knowledge and expertise through a report places the tourism industry under the heading number of analyses, reports and pilot projects. A brief “Major industries that stayed at home”, along with the account of these is presented below. retail and construction sectors. The study shows that the tourism industry has a relatively low level of value 8 Photo: Photo: Johan Wildhagen/www.visitnorway.com 9 Photo: C.H./www.visitnorway.com creation per employee, low cluster attractiveness, low ver, extremely labour intensive: 30 per cent of the investor attractiveness, low educational attractiveness, industry’s revenues go on salaries, compared with 14 low talent attractiveness, and low research and innova- per cent for Norwegian businesses as a whole.
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