sign in sign up
<<
Home , Ranua, Rovaniemi

66O 33’ 07” N 25O 50’ 51” E

Rovaniemi Strategy

SUMMARY

Rovaniemi Tourism Strategy Summary

CONTENTS

1. Summary of the present condition of Rovaniemi tourism and its possibilities 4 2. Rovaniemi SWOT analysis 6 3. Strategic goals 7 3.1 Rovaniemi tourism vision through to 2016 7 3.2 Strategic goals 7 4. Strategic development projects 8 4.1 Study of customer needs and defining customer segments 8 4.2 The development of summer tourism and commercialisation 8 4.3 Development of the recreational use of waterways 8 4.4 Development of conference and congress tourism 9 4.5 Increasing the number of events 10 4.6 Making of wellbeing services 10 4.7 Further development of winter tourism 10 4.8 Building accommodation capacity 10 4.9 Development of marketing and sales 10 4.10 Development of the internal logistics of Rovaniemi 11 4.11 Strengthening of mutual cooperation in the structure of the 11 5. Impact on the regional economy 13 6. Financing development 14 7. Monitoring and updating the strategy 14 1. Summary of the present condition of Rovaniemi tourism and its possibilities

Compared to the rest of , the growth in tourism volumes in requires new product development, but also the commercialisation Rovaniemi has been good since the year 2000. Rovaniemi has also of existing products. managed to retain its market share in , but on the international Large seasonal fluctuation is also an obstacle to new investments. markets Rovaniemi is slowly losing its market share to other tourist There is a demand for new, high standard accommodation capacities resorts. The growth in tourism income and employment has slowed for Rovaniemi in the winter months, but the poor feasibility of summer from the favourable growth experienced in the end of the 1990s. slows investments. The development of Rovaniemi's utilization rate Despite the positive growth in the turnover for the tourism industry, does not favour new investments and Rovaniemi currently has a the feasibility of core enterprises has weakened to a level that does capacity with no demand using the current tourist structure. not safeguard operational preconditions in the long term. The current Growth in and winter tourism can still be expected in equity/debt equity ratio does not facilitate investments using loans Rovaniemi, but if the goal is set for strong growth, the problem will without strengthening the shareholders' equity. At the same time, the be providing sufficiently good accommodation capacity, which will need to achieve at least the same level of development/rate of make it possible, for instance, for families to stay longer. investments as other Lappish resorts is one of the basic requirements In general, over the past few years the image of Rovaniemi has for competitiveness. experienced positive development. However, among domestic tourists Especially large tour operators make companies compete for the Rovaniemi image has not experienced any significant positive providing Christmas products. At the same time requirements for change. As the centre of Lapland, a town in the heart of the wilderness, the level of service have increased and production costs risen. Tourism the town should have all the preconditions it needs to enhance its enterprises are too dependent on tour operators, because the average image as one of Finland's leading tourism towns. size of a company in the region is small and there is not enough The largest tourism volumes for the Rovaniemi region come from cooperation. This dependency is a critical factor for tourism enterprises abroad. Unfortunately, in this respect there has been no study of in the region. image development. The existing information is used as the basis for In the future, enterprises not only need current distribution channels, setting tourism goals and planning development. but also alternative direct distribution solutions. Making the supply Rovaniemi is the centre for Lappish administration, trade and of products available for internet sales, however, requires culture, and its strengths include good traffic connections and town commercialisation of services and larger service entireties. The standard services in the centre of the wilderness. The River , creation of a successful and saleable service entirety on the other River Ounasjoki and Ounasvaara dominate its landscape. The town's hand, requires more cooperation between tourism enterprises. cultural history is strongly focused around the and salmon Tourism in Rovaniemi has had especially big problems caused by culture and the traditional Rovaniemi market. Rovaniemi is also seasonal change and the trend over the past few years indicates that associated with cross-country skiing, and top alpine seasonal change is becoming even more enhanced. In respect to sports. Rovaniemi is already distinctly specialized as a tourist resort. seasonal change, the enhancement of domestic summertime demand It is Lapland's largest and most international tourist resort. Rovaniemi is crucial for speeding up the growth of tourist numbers. The more is renowned for Christmas, and as a location on the even distribution of tourist numbers throughout the year not only .

4 Tourists sledging in the Square.

Rovaniemi has no reason to copy other Lappish tourist resorts in services, the development of summertime tourism, commercialisation respect to the provision of services, rather it should concentrate on of the complete range of products for the region and the integration the further development of its existing strengths. However, at the of applicable parts into electronic commerce. same time care should be taken to make sure the range of tourism Planning and land use should also take into consideration the services is expanded in order to reduce the impacts of seasonal needs of tourism, e.g. snowmobile departure areas and increasing change. The distribution of services should also be developed so that accommodation capacity. As far as concerns land use, the most alongside tour operators, alternative distribution channels will be important regions are the town of Rovaniemi and , Ounasvaara, created, thereby increasing direct connections with consumers. This Arctic Circle, Ranua Wildlife Park area and the riverside regions of may improve the feasibility of the region's tourism enterprises, while the Ounasjoki River. The so-called State Plot should be reserved for at the same time increasing their price competitiveness. tourism and recreational use. Tourism possibilities for the villages The structural change of tourism is leading to even bigger service of Rovaniemi should also be investigated and utilised with regard to production units that will have a better bargaining position in local housing. negotiations with larger tour operators, and these larger units will The tourism appearance of the Rovaniemi town centre should be also be able to operate directly with the consumers. The tourism improved during the winter and summer. There is also a need for a enterprises of Rovaniemi are relatively small and the town is lacking Christmas Triangle for the continuous and long-term improvement a so-called driving enterprise. The driving force for tourism in of the surroundings and tourism appearance of Ounasvaara and the Rovaniemi has been a network of a number of companies, the Ranua Wildlife Park area. successful cooperation of which has created the growth in tourism Tourism product development requires a comprehensive network for Rovaniemi. The opportunity for Rovaniemi is to create larger of routes for summer and winter tourists. This route network should corporate consortiums made up of a partnership of smaller companies, be constructed in such a way that it connects the rural villages with either directly between the companies or under the banner of the the routes of the centre of Rovaniemi and Ounasvaara. Snowmobile regional development company “Rovaniemi Tourism & Marketing routes should be connected in accordance with the rural plan for Ltd” (“Rovaniemen Matkailu ja Markkinointi Oy”). the national route network. In addition to building and maintaining, New tourism investments require tourism to be year-round activity. the upkeep of the routes should also be ensured. Product development should focus intensely on spring, summer and autumn products. Segments to be developed are conference and congress tourism, increasing recreational tourism, events and year- round wellbeing tourism. The most important project entireties related to the product development of tourism in the future are the further development of the winter tourism of Rovaniemi and Ranua, the lengthening of the winter season, commercialising wellbeing

5 2. Rovaniemi SWOT analysis

Strengths Opportunities • Good location and accessibility • Enhanced cooperation between • Lapland's favourite and most different actors and fields international tourist resort • Training and research cooperation • Christmas tourism • Summertime, congress and • Town in the heart of wilderness wellbeing tourism • Development of segmentation • New distribution channels • Quality development • Product development • Global growth in tourism

Weaknesses Threats • Business structure • Poor feasibility • No distinct driving enterprise • Limited scope of capital • Low investment level • The impact of tourism on the • Insufficiency of cabin and apartment- environment type accommodation capacity • Global warming • Lack of common goal/vision • General global economic • Poor feasibility development, rise in oil prices • Actions by competitors, e.g. , Canada, new EU nations

6 3. Strategic goals

Midsummer is celebrated with dance performances by the Kemijoki River.

3.1. Rovaniemi tourism 3.2. Strategic goals vision through to 2016 The strategic tourism goals of the Rovaniemi region for the years Rovaniemi is a tourism town that is valued by tourists and loved by 2007 - 2011 - 2016 based on the aforementioned growth and devel- its inhabitants. We are well known as a family, incentive, congress opment opportunities, have been defined as follows: and wellbeing tourism destination in Europe, as well as being the • Doubling of tourist volumes within a period of ten years, which world's number one destination for Christmas themed tourism. Our relates to an annual objective growth of 7 %. quality services have been commercialised based on customer re- • The stay of tourists will be extended to an average of six days and quirements and they are easily accessible and purchasable. the utilization rate will be raised to 60 %. Our town's versatile and high-level services, as well as the direct • New support units will be developed, in order to reduce the proximity of the Lappish wilderness, create a unique combination dependency on the Christmas season and to make tourism year- for the creation of unforgettable and meaningful experiences. We round. provide a safe path from the beating heart of the town to the heart • Creation of an extra 300 man-years in tourism by the end of 2010. of nature, its waterways and hillsides. Our well-maintained routes • Improvement of feasibility to achieve a 15 % level of return on inspire people to take part in a wide variety of independent and invested capital by 2011. guided activity in winter and summer. We pamper the tourist with • Commercialisation of supply and integration of electronic services based on Lappish traditions and special expertise, and with commerce in order to expand direct connections with consumers. a vast offering of culture and events. • Development of fluent co-operation between tourism enterprises, As a result of good and wide-ranging cooperation, our companies between tourism enterprises and their service enterprises and other will succeed and build a better future for Rovaniemi and Rovaniemi service enterprises, and between all of these and the Town. tourism. • Enhancement of the Rovaniemi image to become one of the five The realization of the vision is measured by the development of best tourism towns in Finland by the year 2011. tourist numbers and income from tourism, as well as by using an • Research into the image of the region in foreign target segments annual customer satisfaction study. In addition, the opinion of and specification of development goals based on findings. companies on the development of tourism in Rovaniemi will be studied each year.

7 4. Strategic development projects

The vibrant autumnal colours of ruska reflected off the surface of the Kemijoki River.

The strategy for tourism in the Rovaniemi Region is to further salmon culture. The commercialisation of summer tourism should develop current tourism products such as activity programs and also include the early autumn ruska period (the term used for the places to visit. The current activity programs, the , period when natural autumnal colours are at their most vibrant). Ounasvaara, Santapark, Arktikum and the Ranua Wildlife Park will The goal for the development of summertime tourism is to obtain also be central tourism products for the region in the future. In international charter flights to Rovaniemi. addition, new tourism products are needed with the commercialisa- An important summertime tourism product for Ranua is the tion of existing services. cloudberry. In Ranua, cloudberry tourism is being developed with the intention of improving berry picking and sales and extending In order to achieve goals, the region should initiate the following the stays of tourists by increasing communications. The goal is also strategic development projects: to enhance the cloudberry image by constructing a new Cloudberry Market and Cloudberry Street. The development of summertime tourism should investigate possible 4.1. Study of customer needs so-called special interest products, related to a variety of pastimes. and defining customer segments Special products may be, for instance, horse riding, Tourism enterprises of the region hold information on the require- bog/swamp/wetland tourism, products related to geology and bird ments and expectations of consumers mainly based on experience. watching, as well as recreational and sport fishing. The development In the marketing for the whole region, the information based on of summertime tourism requires the initiation of a joint development experience held by enterprises will no longer be sufficient. There is project between the town and the tourist industry. a need for systemised information obtained via research on customer requirements and the specification of segmentation based on this 4.3.Development of the information. There still needs to be an understanding on what are the functioning distribution channels and what the distribution recreational use of waterways channels have on the method of presenting the product and service. With respect to the waterways, the Kemijoki and Ounasjoki rivers A joint research and development project should be initiated by should be developed in such a way that they serve the recreational tourism actors to investigate these issues. users of Rovaniemi and also tourists. A natural partner for the development of the recreational use of the River Ounasjoki is Kittilä. The further development of the recreational use and marketing of 4.2. The development of summer the River Simojoki should be done with the Municipality of Ranua. tourism and commercialisation An important partner for projects related to waterways is the Lapland The “ingredients” for Rovaniemi’s summer product are the brightness Regional Environment Centre. Furthermore, natural partners for of the summer nights and the waterways surrounding Rovaniemi. the development of recreational and sport fishing use of the rivers The Kemijoki and Ounasjoki rivers are integral parts of the culture Kemijoki and Ounasjoki are the fishing societies located along the and history of Rovaniemi, for example, through its lumberjack and riversides. The development of the recreational use of waterways

8 Arktikum has facilities for housing meetings and conferences. and summertime tourism will be perfectly supported by returning Rovaniemi environs Rovaniemi-Olkkajärvi-Vikäjärvi-Oikarainen- migrating fish populations to the Kemijoki and Ounasjoki rivers. Rovaniemi. The development of the recreational use of waterways requires the • Creation of the trail for the Pohtimolampi environs Pohtimolampi- improvement of the riverside infrastructure, a survey of river routes, Sinettä-Tapionkylä. repairing of routes, arrangement of signposting and resting places. • Nordic Fitness Park - concept construction for the Ounasvaara The large-scale initiation of river tourism also requires the development region of suitable boat types. In addition to developing existing services, • Ounasvaara's other summer trails companies could develop boat hire, new types of river cruises and • Ranua's summer trails canoeing. A variety of sports and cultural events may be arranged • Further development of Arctic Circle Hiking Area (Napapiirin with the waterways. retkeilyalue) and Auttiköngäs. The commercialisation of waterways for use by tourism will be performed in permanent partnership between activity programme Both summer and winter routes shall be constructed to form a companies, the Lapland Regional Environment Centre, Metsähallitus comprehensive network that connects the rural villages with the and municipalities with due consideration for local housing and centres of Rovaniemi and Ranua, national routes and the Ounasvaara nature. routes. Ounasvaara II - Development Programme comprises a number The construction of the routes should take into consideration the of entireties that develop summertime tourism. The largest single suitability of the route for various forms of travel, such as, mountain project enhancing summer tourism is the expansion of the golf course. bikes, Nordic Walking or using motorised equipment. The possibility A full sized golf course is a basic requirement for the increase in for mobility-restricted persons to use the trails should also be taken golf tourism and the expansion of the Ounasvaara Golf Course to 18 into consideration in the designing and implementation of the routes. holes has already been planned. This expansion will also facilitate The construction of the routes should take into consideration the the opportunity to develop the “Nightless Night Golf Competition”, suitability of the route for various forms of travel, such as, mountain including, in addition to Ounasvaara, courses such as Levi, Vuokatti bikes, Nordic Walking or using motorised equipment. The possibility and due to its special location, the - Golf Course. The for mobility-restricted persons to use the trails should also be taken utilisation of the expanded golf course for tourism purposes should into consideration in the designing and implementation of the routes. be planned using a joint development project of the golf club, Ounas- vaara enterprises and other tourism actors. 4.4. Development of conference Development of hiking trails and congress tourism Rovaniemi is already offered as a Finnish conference venue. Rovani- The construction, reparation and signposting of hiking trails is an emi's strengths lie in its location, exoticism and a variety of competitive integral part of the development of summertime tourism. The fol- edges in both summer and winter. If the premises of the Lappia House lowing hiking trails are required: are available for conference hire, good competitive requirements for • Creation of small bear tour type trail for the Arctic Circle in the

9 the premises also exist. When planning new construction projects locations in Lapland e.g. Olos and Saariselkä attract large numbers for the town centre, it is worth bearing in mind that a conference of customers and thereby increases the turnover of enterprises and venue will also require a sufficient number of workgroup facilities. feasibility. The Finlandia ski event has, in the past, seen participation By developing events, conference travel may also be supported. from over 15,000 skiers. A five-day cross-country skiing trek from A development programme will be specifically drawn up for con- Kittilä to Rovaniemi may be a cross-country skiing alternative for ference and congress tourism, which will concentrate on product the older age groups who are approaching retirement and value an development and the development of marketing. unhurried pace with terrain corresponding to their own performance. The event may also be combined with cultural offerings, the setting for which may be e.g. Särestöniemi. The cross-country ski trek will 4.5. Increasing the number of events rely on the same service points used for summertime boating. The The offering of events should be enhanced in such a way that the route may of course also be used before and after the actual skiing contents of events are planned to firstly take into consideration the event. special expectations of the clients of each respective season and to help achieve the goal of easing seasonal fluctuations. Rovaniemi Snowmobiling should be able to better utilise the special cultural traditions it is Snowmobiling should ensure flexible and safe transfer from the town known for. These traditions include top sports such as ski jumping, centre's accommodation establishments to the well-maintained cross-country skiing and alpine sports, the salmon culture and snowmobile trail network. nowadays also music and literature. In , there are actually good opportunities for snowmobiling because the depth of the snow in this region is very good. In addition, spas housing and lost wilderness is facilitate 4.6. Making of wellbeing services construction of new snowmobile trails. Wide-ranging local and Santasport with all its auxiliary services is the main provider of national well-maintained snowmobile networks provide Excellent wellbeing services in Rovaniemi. The vision as to what its surroun- possibilities for increasing snowmobiling in the Rovaniemi and dings may offer in the future can be seen from e.g. the Vierumäki Ranua regions. In particular, for the development of wintertime Sport Institute of Finland that today is the wellbeing centre for tourism in Ranua, the snowmobile trail running between Rovaniemi wealthy inhabitants. Santasport is continuously developing and Ranua needs to be realized. its provision of wellbeing services. This range of services may, however, be further developed by supplementing with the offerings of other local actors and by creating new services originating from the Arctic 4.8. Building accommodation capacity environment that are based on the Lappish wellbeing culture. Healthy Although the Rovaniemi District has the largest number of holiday nutrition would naturally be part of the offering. The location of all times in Lapland, the accommodation capacity offered mainly services under a single roof, e.g. with a wellbeing and pampering comprises rooms. This is the main reason why in particular, centre constructed on the Valio plot, thereby making the services family stays are brief. even more accessible for tourists. Achieving the goals set in the tourism strategy requires the construc- tion of high standard cabin accommodation capacity or apartment 4.7. Further development hotel capacity. This sort of accommodation gives the family more space, which is necessary for longer stays and provides the opportunity of winter tourism for self-catering. The goal should be to construct 50 cabins or apartments per year over the next five years. Christmas product The Christmas product and wintertime tourism will not remain competitive without development measures. Using product develop- 4.9. Development of ment, it should be possible to extend the Christmas and winter marketing and sales season to April, as other Lappish tourist resorts have done. Development of marketing Ounasvaara and cross-country Mental impression factors have become central factors for the success skiing trek on the frozen river of enterprises, the town and tourist destination. The building of The significance of Ounasvaara as a winter destination needs to be mental impressions and marketing should be based on factual matters. emphasised. The principle projects of the Ounasvaara II development Marketing measures should knowingly create a strong image based plan such as, the organisation of Ounasvaara activities, development on unique characteristics and strengths, making it positively distinct of routes, environmental plan, development of expertise in cold air from the competition. In the marketing of tourism Rovaniemi is technology and snow, HS 140 ski jump and numerous product marketed as an entirety. Goals and target groups should be carefully development projects are very significant for the overall development specified and selected. In addition, the products should be in good of Rovaniemi tourism, and the implementation of such is vitally order and marketing should be planned and implemented with more important for wintertime tourism. concentrated focus on the various segments. (see section 9.1.) Rovaniemi's natural competitive edge during the early spring is the river and the activity possibilities it offers. Skiing events at other

10 There is plenty to see and do at the Arctic Circle throughout the year, but Christmastime at the Santa Claus Village has a special atmosphere.

Electronic commerce and sales 4.11. Strengthening of Tourism service providers of the region should also build direct mutual cooperation in the distribution channels to consumers alongside the current distribution channels. The most cost effective way of doing this is with electronic structure of the industry commerce. Preconditions for functional success are sufficiently large The implementation of the tourism strategy requires wide-ranging service entireties, the commercialisation of such and description of cooperation between the town and tourism enterprises. The deve- such, in such a way that the service purchaser will receive an unam- lopment of Ounasvaara's current route network to make it also biguous and true picture of the services purchased. available for tourists, construction of new hiking trails, development of river route and related services, planning of cabin and apartment 4.10. Development of the hotel plots, the reservation of the state's plot for use as a wellbeing and pampering centre, expansion of the golf course and the develop- internal logistics of Rovaniemi ment of starting grounds and routes for snowmobiling are examples Some of the places to visit and certain tourism regions of Rovaniemi of development projects that require wide-ranging co-operation. are difficult to access for tourists who are not using their own vehicle The production of basic material relating to tourism as a whole will or who wish to independently experience the tourism services of also naturally belong to the co-operation projects. Rovaniemi. The service businesses of the region will also benefit from the A regular bus service operates to the Arctic Circle, but the connection tourists brought to the locality by the tourism enterprises. It is between the Santa Claus Village and Santapark is not good enough. therefore natural that the service businesses also participate in the Accessing Ounasvaara for tourists without their own transport is development of the region in order to retain its competitiveness. difficult. The functioning of the bus service between Rovaniemi and Ranua also needs to be safeguarded for tourists.

11 Burning the midsummer bonfire in 2006.

12 5. Impact on the regional economy

A summary of the estimated impacts of tourism on the regional economy in 2016 The tourism strategy has set the goal of achieving a doubling of the Direct tourism income 376 MEUR numbers of tourists within a period of ten years and raising the Indirect tourism income 98 MEUR utilization rate to 60 %. The table below contains figures showing the impacts on the TOTAL INCOME FROM TOURISM 474 MEUR regional economy of various growth alternatives. The goals set by the Town of Rovaniemi to achieve 300 new jobs by the end of 2010 Wage income impact 86 MEUR requires an approximately 6 % annual growth in overnight stays. If Tax revenue impact 16 MEUR the amount of tourism investment fails to increase from the current level, it is probably realistic to believe tourism will take a negative course. If tourism in Rovaniemi slows by approximately 2 % a year, TOTAL BENEFIT approx.560 MEUR this would signify a loss of over 220 man-years.

ECONOMIC Tourism falls Growth slows to Current growth Growth goal IMPACT 2016 2 percent 2 percent 4 percent 7.3 percent Direct tourism income 113 MEUR 186 MEUR 236 MEUR 376 MEUR Indirect tourism income 30 MEUR 48 MEUR 61 MEUR 98 MEUR Total income from tourism 143 MEUR 234 MEUR 297 MEUR 474 MEUR Wage income impact 47 MEUR 63 MEUR 73 MEUR 86 MEUR Tax revenue impact / municipality 8 MEUR 10 MEUR 12 MEUR 16 MEUR Total benefit 198 MEUR 303 MEUR 370 MEUR 560 MEUR Change in number of jobs -223 man-years +255 man-years +550 man-years +1000 man-years

13 6. Financing development 7. Monitoring and The development projects required for strategic implementation are updating the strategy yet to be described with sufficient accuracy to allow the calculation The Town of Rovaniemi in co-operation with the Rovaniemi Regional of required capital investment. Similarly, no time periods have been Development Agency and Rovaniemi Tourism and Marketing are specified. The intention of this operation is to progress once all the responsible for the implementation and necessary revision of the various parties are committed to the findings of the strategy to date. tourism strategy and monitoring of impacts. It is, however, clear that development will require substantial economic Following the approval of the Rovaniemi Tourism Strategy, an investments. The resources of Rovaniemi Tourism and Marketing action plan will be compiled that specifies the content of the devel- alone are insufficient. There is a requirement for investments by opment projects in more detail, the responsible and implementing enterprises and public funding in order for the development projects bodies for the projects are defined and the implementation schedules to be implemented to the designed scope. issued by project.

Monsters in the at the Rovaniemi Rock Festival in summer 2005.

14 Summer sports at Ounasvaara.

15 Rovaniemi Tourist Information - Santa Claus Tourist Centre City of Rovaniemi Rovakatu 21 Hallituskatu 7, P.O. Box 8216 FI-96200 Rovaniemi FI-96200 Rovaniemi Tel. +358 16 346 270 Tel. +358 16 3221 Fax +358 16 3424 650 Fax +358 16 322 6450 [email protected] www.rovaniemi.fi www.rovaniemi.fi/tourism

Design: Advertising Kioski Paino: Oy Sevenprint LTD Photos: Rovaniemen kaupunki, Petri Uutela, Timo Lindholm ja Ilkka Väyrynen