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Rovaniemi Tourism Strategy Summary

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Rovaniemi Tourism Strategy Summary 66O 33’ 07” N 25O 50’ 51” E Rovaniemi Tourism 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 industry 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 Finland, 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 Lapland, 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 Christmas 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 Kemijoki, 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 lumberjack 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, ski jumping 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, Santa Claus and as a location on the even distribution of tourist numbers throughout the year not only Arctic Circle. 4 Tourists sledging in the Lordi 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 Ranua, 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
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