Resort benchmarking: Ostsee

An interview with Rolf Seelige-Steinhoff (Managing Director of the Seetel group)

Fairmas: on has been grown strongly in recent years. RevPar increased significantly in 2011 compared to 2009. What, in your opinion, has led to this positive development?

R. Seelige-Steinhoff: There is more than one reason for the thoroughly positive development seen over the last few years. Usedom and the Kaiserbäder (the imperial spas) in particular are not only popular during the busy months of the season. In recent years we have succeeded in attracting more visitors to the sunny in the so-called "off-season" by means of focussed marketing measures involving all parties. Our company is trying to counteract the "last minute" trend through strategic price management. We reward our guests for showing their confidence in us by booking early and by offering an occupancy-dependent room rate. This "win - win situation" is reflected in a more attractive price for our visitors and in better advance bookings for us.

Fairmas: What distinguishes Usedom from other Baltic regions?

R. Seelige-Steinhoff: Understandably, one associates the Baltic with sea, sun and sand. This applies to the entire Baltic region. However it is not a unique selling point for our island. The sunny island of Usedom does have a clear added value in comparison to other Baltic destinations. Apart from the benefit of offering sea, sun and sand, Usedom in its entirety offers an absolute natural experience with a total of 14 nature reserves combined with a number of cultural highlights. The Otto-Niemeyer–Holstein studio, the Usedom literary festival, and the Usedom Music Festival, which is now a permanent fixture, these are all major events spread over the year - in the midst of a uniquely natural environment - that set us apart from the rest.

Resort benchmarking: Ostsee

And this is without mentioning the exceptional architecture, including the Imperial spas, which is famous far beyond the island. The Imperial spas of , and are a prime example of Imperial architecture with a high density of wonderful buildings that we can be truly proud of. In any case, it's certainly worth moving from the promenade to the third or fourth rows of buildings.

Fairmas: The Baltic Fashion Award attracts many international visitors to the island and has now become a flagship for the Baltic region. RevPar increased significantly in 2011 compared to 2009. Have any more events of this kind been planned?

R. Seelige-Steinhoff: As already mentioned, the sunny island of Usedom offers a high level of added-value combined with the varied cultural events and unique features mentioned above. Cultural events help to create further incentives and added values. One summer highlight in the Imperial spas is the "Bridge of Fashion" in July, an extension of the Baltic Fashion Award, which has become a modern cultural event. In addition, we have already launched one new project this year, our first Usedom Literary Prize under the patronage of Professor Hellmuth Karasek. You can rest assured that we will continue to work jointly in this regard to create a great deal of new added value.

Fairmas: Where do you see the opportunities and risks for tourism in the Baltic region?

R. Seelige-Steinhoff: A paradigm shift has now taken place that can be seen as an opportunity for the entire region. While 10 years ago, everyone just wanted to fly off on a package holiday, it appears that nowadays, people are discovering just how beautiful holidays in their own country can be.

One fundamental feature in this context is that locations and all service providers are not failing to address the requirements. The main emphasis of a destination with outstanding performance characteristics must be made clear - right at the beginning.

Resort benchmarking: Ostsee

It is not helpful to use one destination to address every possible market. Instead, a clear specialization has to be recognizable and the right target groups for it must be addressed.

Of course, this places responsibilities on all service providers, as well as on policy- makers. General conditions need to be established that make it possible to respond and react to destinations' specific needs. Employee recruitment is one clear factor, as is the need to provide flexibility upfront for seasonal businesses through simple business legislation which provides the political framework to ensure that the right conditions exist for our employees on a day-to-day basis.

The next step involves a major large opportunity to address the increased internationalization of the Baltic region so that we can join forces to achieve an international presence. This is certainly a project that will have to be planned over the long term. However, it does have great potential.

Evaluation of Usedom

AbweichungenDisc repancy 2011/2009

OCC ADR REVPAR OCC ADR REVPAR OCC ADR REVPAR OCC ADR RevPar

YTD 25. Mai 2011 YTD 25. Mai 2010 YTD 25. Mai 2009 % Absolut % Absolut %

Usedom all 52,8 % 73,22 € 38,67 € 47,2 % 75,31 € 35,51 € 53,6 % 60,97 € 32,65 € -1,36% 12,25 € 20,1% 6,02 € 18,44%

Events OCC ADR REVPAR OCC ADR REVPAR OCC ADR REVPAR OCC ADR RevPar

2011 2010 2009 % Absolut % Absolut %

Baltic Fashion Award, 29.04.-30.04.2011 30.04.-01.05.2010 23.-24.10.2009 Usedom, All 68,7 % 79,77 € 54,79 € 62,0 % 79,87 € 49,53 € 71,4 % 69,32 € 49,47 € -3,74% 10,45 € 15,1% 5,32 € 10,75%

Fairmas thanks you for taking part in the interview!