Impacts of a Local Community Event on Development of Peripheral Destination Entrepreneurial Perspective on Aldrei Fór Ég Suður Festival in Iceland

Uppsal a U niversity log otype

21 001 Degree project 30 credits June 2021

Impacts of a local community event on development of peripheral destination Entrepreneurial perspective on Aldrei fór ég suður festival in Iceland

Alina Bavykina

Master’s Pr ogramme in Sustainable D esti nation D evelopment

Master’s Programme in Sustainable Destination Development

Uppsal a U niversity log otype

Impacts of a local community event on development of peripheral destination: entrepreneurial perspective on Aldrei fór ég suður festival in Iceland

Alina Bavykina

Abstract Remote communities stay vulnerable in the face of major socioeconomic challenges.Tourism is often seen as a way to stimulate local economies and increase attractiveness of peripheral destinations, while events are considered to be one of the tools to promote tourism. In this regard, local collaboration is deemed to be crucial for facilitating development in spatially remote areas, where social context plays an important role in formation of entrepreneurial networks. By using the case of a local community festival Aldrei fór ég suður (AFS) in Ísafjörður, Iceland, I investigate relationship between the festival and local tourism entrepreneurs and define opportunities that the festival might provide for sustainable development of the area. Based on data collected from 24 interviews, findings suggest that the impact of AFS on local businesses varies depending on the category of business, its location, seasonality and target group, whereas the festival also contributes to enhancement of destination image, extension of tourist season and attraction of new categories of visitors. Following theoretical framework of social capital and social embeddedness, the main role of the festival is found to be related to enhancement of community pride and contribution to social change within community. On the other hand, results demonstrate general lack of willingness to collaborate and suggest an increased risk of overembeddedness given the self-reliant nature of the festival and its reluctance to commercialization. Discussed suggestions for sustainable destination development include co-branding, packaging for extended stay, transportation options and usage of empty housing for temporary accommodation. Faculty of Sci ence and Technol ogy, U ppsal a U niversity. Visby. Supervisor: Erro r! Ref erence source not found ., Subj ect r eader: Erro r! Ref erence source not found ., Examiner: Error! Ref erence source not found .

Faculty of Science and Technology Uppsala University, Visby

Supervisor: Guðrún Þóra Gunnarsdóttir Subject reader: Ulrika Persson-Fischier Examiner: Anette Oxenswärdh

Table of Contents

LIST OF ACRONYMS ...... 6

LIST OF FIGURES ...... 7

LIST OF TABLES ...... 8

ACKNOWLEDGEMENTS ...... 9

1. INTRODUCTION ...... 10

1.1. STATEMENT OF INTEREST ...... 10

1.2. PROBLEMATIZATION ...... 11

1.3 RESEARCH PURPOSE AND QUESTIONS ...... 12

1.4 OUTLINE OF THESIS ...... 12

2. BACKGROUND ...... 13

2.1 TOURISM IN PERIPHERAL DESTINATIONS ...... 13

2.2 ENTREPRENEURSHIP FOR SOCIAL CHANGE...... 15

2.3 LOCAL COMMUNITY EVENTS AND DESTINATION DEVELOPMENT ...... 16

3. THEORETICAL APPROACH ...... 20

3.1 SOCIAL CAPITAL ...... 20

3.2 SOCIAL EMBEDDEDNESS ...... 22

3.3 CONTRIBUTION TO EXISTING RESEARCH ...... 23

4. STUDY AREA ...... 24

4.1 ÍSAFJÖRÐUR ...... 24 4.1.1 Overview...... 24 4.1.2 State of tourism in Ísafjörður and Westfjords ...... 26

4.2 ALDREI FÓR ÉG SUÐUR ...... 27

5. METHODOLOGY ...... 29

5.1 RESEARCH STRATEGY AND DESIGN ...... 29

5.2 DATA COLLECTION ...... 30 5.2.1 Research methods ...... 30 5.2.2 Sampling ...... 30 5.2.3 Research process ...... 32

5.3 DATA ANALYSIS ...... 33

5.4 RESEARCH ETHICS ...... 34 3

5.5 RESEARCH LIMITATIONS ...... 35 5.5.1 Low generalizability ...... 35 5.5.2 Limited temporal perspective ...... 35 5.5.3 Language barrier and outsider perspective ...... 35 5.5.4 Considerations related to COVID-19 ...... 36 5.5.5 Possibility of bias ...... 36

6. DATA ANALYSIS ...... 37

6.1 FINDINGS ...... 37 6.1.1 The role of AFS for tourism entrepreneurial network...... 37 6.1.1.1 Accommodation ...... 37 6.1.1.2 Dining ...... 39 6.1.1.3 Tour operators ...... 42 6.1.1.4 Museums and cultural institutions ...... 44 6.1.2 The role of AFS for destination development ...... 46 6.1.2.1 Extended seasonality ...... 46 6.1.2.2 Enhanced destination image ...... 47 6.1.2.3 Attraction of new categories of visitors ...... 49 6.1.3 The role of AFS for local community ...... 50 6.1.3.1 Merging of community ...... 50 6.1.3.2 Enhancement of community pride ...... 51

6.2. DISCUSSION ...... 53 6.2.1 AFS and social capital ...... 53 6.2.2 AFS and social embeddedness ...... 55 6.2.3 AFS and sustainable destination development ...... 58

7. CONCLUSION ...... 60

7.1. IMPLICATIONS FOR FURTHER RESEARCH ...... 61

REFERENCES ...... 62

APPENDICES ...... 74

APPENDIX 1. INTERVIEW GUIDE FOR TOURISM ENTREPRENEURS ...... 74

APPENDIX 2. INTERVIEW CODING ...... 75

APPENDIX 3. SWOT-ANALYSIS OF AFS ...... 76

APPENDIX 4. SOCIAL CAPITAL OF ÍSAFJÖRÐUR ...... 77 APPENDIX 5. NETWORK OF KEY SERVICE PROVIDERS INVOLVED IN AFS ...... 78 4

This page intentionally left blank

List of acronyms

AFS – Aldrei fór ég suður

ANT – actor-network theory

DIY – Do-It-Yourself

DMOs – destination management organizations

EEG – evolutionary economic geography

ITRC – Icelandic Tourism Research Centre

NAT – Nordic Adventure Travel

OECD – Organisation for Economic Co-operation and Development

SMEs – small and medium-sized enterprises

TALC – Tourism Area Life Cycle

UW – The University Centre of the Westfjords

WOM – Word of Mouth

WTO – World Trade Organization

List of figures

Figure 1. Map of Iceland with highlighted location of the Westfjords region ...... 24 Figure 2. Map of the Westfjords region ...... 25 Figure 3. Number of visitors at all registered accommodation in the Westfjords 2009-2019 ...... 26 Figure 4. Map of Vestfjarðaleiðin ...... 27 Figure 5. Map of the study area ...... 31 Figure 6. Merchandise beer for AFS in collaboration with local brewery ...... 56 Figure 7. Suðurgata in Ísafjörður renamed to Aldrei fór ég suðurgata ...... 57

List of tables

Table 1. Social capital typology ...... 22 Table 2. Distance between Ísafjörður and villages in the study area ...... 31 Table 3. Description of interview codes ...... 34

Acknowledgements

First and foremost, I would like to thank my supervisor Guðrún Þóra Gunnarsdóttir for helping me with organizing this research and continuously contributing with her feedback, which was very important for my thesis writing. I also want to thank Þórný and Ása for making my stay in Akureyri as pleasant as it was, as well as their colleagues from Icelandic Tourism Research Center (ITRC) for supporting me throughout the research process.

I am also grateful for support and hospitality that The University Centre of the Westfjords (UW) showed me during the fieldwork in Ísafjörður. Thanks to everyone who has expressed willingness to participate in my research and to all the nice people I have had an opportunity to meet during my stay in Iceland.

I also want to acknowledge supervision group from Campus Gotland headed by my subject reader Ulrika Persson-Fischier for contributing with valuable input during our supervision sessions. Thanks to all teachers and classmates for making these two years of studying such an unforgettable experience.

Additional thanks to my friends Sandra, Noa and Elena for taking their time to give feedback on my thesis draft.

Finally, this trip to Iceland would not have been possible without financial support from Uppsala University, which I am especially grateful for.

1. Introduction

1.1. Statement of interest

The idea of this project came to me rather spontaneously, but in hindsight I realized that the process of generating the subject topic was in some way predetermined. On the one side, I have been keen on music as long as I can remember myself. With a long history of being a music fan, I have also developed specific interest for niche community events given their potential of providing new music discoveries accompanied by the feeling of togetherness and community pride. Following my passion, I started travelling for music events and festivals around Sweden and Europe, which made me finally realize how being on a trip while pursuing a goal to acquire a new experience can also be an experience itself. On the other side, I was also attracted by remote destinations in the Circumpolar North. Partially, it was caused by the image of these areas as being “the world's last great wildernesses” (Stewart et al., 2005, p. 386) surrounded by pristine and peaceful environment. However, the main incentive was my inner desire to explore peripheral settlements with low density of population and harsh life conditions.

Having chosen to focus on the case of a music event in remote subarctic destination for this Master’s thesis is thus an attempt to combine my areas of interest which, even though they might seem to be visibly unrelated, are possible to merge into one spectacular research topic. By summarizing experiences that I have acquired during studies at Master programme in Sustainable Destination Development, I came to conclusion that I would like to focus on the role and impacts of event-related tourism, which has finally led me to choosing the stated research topic. In this way, it can be said that this research project comprises a combined result of my passion for music and live events, longing to explore remote cold-water destinations, and general concerns about impacts of tourism on the environment, businesses and communities from sustainable development perspective.

Ironically enough, I have never been to Aldrei fór ég suður (AFS) or Iceland before, and I vaguely remember finding this event while searching for general information about festivals in Iceland. Since I still had an unused grant for a trip to Iceland that I could not make last year due to sudden outbreak of COVID-19, I decided to give it a chance and that is how the background of this thesis was shaped. Even though the festival finally got cancelled, I have had a unique opportunity to reside in three different locations in Iceland during the course of two months – Reykjavik, Akureyri and Ísafjörður – while staying in communities with slightly different social and spatioeconomic characteristics, which has also added another dimension to the overall experience and the context of my research. With this said, let the journey begin.

1.2. Problematization

Characterized by remoteness and low accessibility, peripheral areas lay outside of the range of typical holiday destinations, however, they still tend to attract dedicated travelers in search of outstanding experiences and adventures. At the same time, remote communities remain vulnerable in the face of major socioeconomic challenges. For instance, depopulation comprises one of the key issues affecting the ability of such communities to resist external pressures, while posing the risks of decline in the number of available public services, marginalization of remained population and gradual stagnation of the area (Martín et al., 2020).

The example of Iceland is especially representative in this case. Following its generally low population density in relation to the spatial area, rural regions of Iceland stay underpopulated, even though they comprise the predominant part of the Icelandic territory (Eurostat, n.d.). According to findings from the survey done by Icelandic Regional Development Institute, a majority of residents in smaller villages of Iceland are planning to leave their communities, mentioning employment opportunities and access to healthcare and cultural services amongst the main reasons for leaving (Byggðastofnun, 2019). In this context, the region of the Westfjords, where the following case study takes place, is one of the most severely affected due to its spatial remoteness from the capital area, generally low transport accessibility as well as decreased suitability of the land for other provisioning activities than fishing (Magnússon, 2013).

Given the focus of many remote communities on traditional extractive industries such as fishing and agriculture, tourism is often seen as a driver of socioeconomic change needed to generate possibilities of employment for local residents (Kokorsch, 2017). Shifting focus to culture and research is also named amongst possibilities for transition, whereas introduction of events provides incentive for infrastructure development and helps to increase destination attractiveness (WTO, 2007). However, further development remains problematic in most cases due to high reliance of such communities on external funding.

In that sense, fostering collaboration between local stakeholders is deemed to be crucial for peripheral destinations to prosper and retain its independence. Given the low population size of such communities, the process of bonding social ties happens rather naturally and leads to formation of extensive network, where market transactions become inseparable from the notion of social relations within the community (Granovetter, 1985). On the other hand, the process of sustainable development might be hindered by emergence of overembeddedness that can negatively affect collaboration outside the network in peripheral communities, where business

11 connections are often based on historically predetermined sociocultural context (Czernek- Marszałek, 2020b).

1.3 Research purpose and questions

Given the stated research topic, the purpose of my study is to investigate the relationship between a local community festival and tourism entrepreneurial network in a peripheral destination in order to define opportunities which the festival could provide for sustainable destination development. While existing research mostly considers residential point of view, this thesis will provide entrepreneurial perspective in order to further apply theories of social capital and social embeddedness on the case of the festival to see the potential for collaboration between tourism- related businesses and the festival. In this way, I also seek to tackle the gap in research on the impacts of events in peripheral areas while extending the knowledge on Icelandic communities beyond national borders. Expected findings could contribute to the existing research in the fields of sustainable destination development, entrepreneurship and event management, at the same time being a source of information for policy makers in destinations with similar spatial and socioeconomic characteristics. Hence, research questions are formulated as follows:

1) How has Aldrei fór ég suður affected the existing network of tourism entrepreneurs in Ísafjörður and surroundings? 2) What opportunities do local tourism entrepreneurs see in Aldrei fór ég suður in terms of sustainable destination development of Ísafjörður and the nearby area?

1.4 Outline of thesis

This thesis is divided into seven chapters including stated introduction with description of existing problematics in peripheral destinations and formulation of research purpose and questions. Next, background in form of previous research in related field of studies is given. Subsequent chapters comprise theoretical framework followed by description of the study area and methodology applied for the research. Afterwards, data analysis is first presented in form of three main themes divided by subchapters and is further complemented with discussion on stated findings while applying chosen theoretical framework. Lastly, main findings are summarized in conclusion which also involves suggestions for future research.

2. Background

2.1 Tourism in peripheral destinations

Traits of different destinations could be distinguished in relation to their spatioeconomic characteristics. Previous studies in tourism literature have mainly applied the notion of periphery as opposite to the core. As such, peripheral destinations imply traits of isolation, rurality and negative dynamics in population development by contrast to cores, which are often considered to be larger urbanized areas with access to wider range of facilities and more developed infrastructure (Kauppila et al., 2009; Kauppila, 2011). According to OECD’s (1994, p. 9) definition of rurality, peripheral destination might also fall under the category of rural area, which is characterized by low population density, dominance of traditional sources of subsistence and overall number of inhabitants fewer than 10000 people. At the same time, some peripheries can also act as a core in relation to neighboring rural areas. This concept is also known as “a core in the periphery” (Kauppila et al., 2009, p. 428), where peripheral destination provides public services, such as healthcare, education and culture, which are non-existent in surrounding settlements.

Given remoteness from the main urban centers, low transport accessibility and insufficient tourist infrastructure, attractiveness of peripheral destinations remains limited for visitors, while lack of employment opportunities and poor supply of available services pose a risk for outmigration of residents living in such areas (Martín et al., 2020; Magnússon, 2013). The complexity of problematics existing in peripheral areas is mainly seen from the regional and rural development perspective (Martín et al., 2020; Dax et al., 2019; Kokorsch, 2017), whereas tourism is often considered to be an important driver for socioeconomic development.

As an example, Dax et al. (2019) describe positive changes imposed by implementation of agritourism in rural mountainous areas of China, which have caused the return of younger population to remote villages to join the newly emerged network of hospitality entrepreneurs. Amongst other cases, several authors refer to the role of ecotourism and recreational angling, as well as food and gastronomy as a way to stimulate local economies in rural areas (Curtis et al., 2017; Rinaldi, 2017). In terms of remote destinations of Arctic and North Atlantic waters, Huijbens (2015) further points out the growing popularity of cruise tourism as one of the major tools for socioeconomic development in these areas.

At the same time, several authors mention the process of restructuring of traditional industries by means of cultural tourism. For instance, Kokorsch and Benediktsson (2018b) describe a case of small fishing villages in Iceland where traditional fishing culture is utilized in touristic activities, such as festivals and events. Martín et al. (2020) also accentuate the role of 13 cultural tourism in rural villages of Mediterranean region as creating a positive impact in terms of increased job opportunities and overall destination attractiveness.

On the other hand, spatial accessibility is considered to be one of the key issues for sustainable tourism development in peripheral areas. For instance, Ibanescu et al. (2020) raise concerns about the ability of tourism to build resilience in peripheries, as introduction of tourism to the peripheral area also brings the notion of vulnerability, whereas the growth in tourist arrivals might lead to further depopulation in terms of workforce demand and shifts in economic performance. Müller and Brouder (2014) point out restricted accessibility of peripheral destination as a main disadvantage by contrast to more central areas, which makes it rather difficult to promote initiatives aimed to develop tourism on a local level.

However, remoteness can also be introduced as a unique selling point and serve the ground for both destination and community development. As such, Kokorsch and Benediktsson (2018b) describe the case of The Arctic Henge project, where the attraction sight for tourists has also had a symbolic value for the small community that lost the vast number of residents at the time when herring stocks had ceased (Kokorsch & Benediktsson, 2018b; Guide to Iceland, n.d.a). In relation to adventure tourism, Berbeka (2018) underlines the extensive value of ski touring experiences in remote areas of Iceland and Greenland, which is mainly associated with nature, unspoiled environment, and potential emergence of closer ties between participants in spatially isolated areas.

At the same time, as mentioned by Zillinger (2006, p. 55), “not every region is suitably located or outstandingly attractive to make tourism and recreation a substitute for the decline of industry”. In some cases, transformation towards tourism might be economically unfeasible, creating extensive tension on the infrastructure of peripheral destination. In this context, viability of touristic products and services depends on the level of demand from potential customers. In the study on a literary festival on the Norwegian island, Marcouiller and Westeren (2019) argue that integrative approach for cultural tourism is crucial as collaborative planning enables to sustain tourism development in remote and rural areas. The role of public-private collaboration becomes vital to produce sustainable touristic products with connection to specific location that might engage visitors (Marcouiller & Westeren, 2019).

The potential of tourism to bring broader social change is discussed from such perspectives as, for instance, volunteer tourism for child protection (Wilson, 2015) and inclusion of migrants in entrepreneurial activities (Matarrita-Cascante & Suess, 2020). At the same time, it is suggested that change on the local level might also be induced by small business owners given their motives

14 of economic independence and commitment to community development (Carrigan et al., 2017). Furthermore, this notion is especially relevant in the case of peripheral destinations due to often restricted size of social and human capital that makes emergence of novel enterprises more impactful by contrast to urbanized areas.

2.2 Entrepreneurship for social change

One of the first mentions of entrepreneurs in the context of social change was brought up as early as in 1967, when Barth described the role of entrepreneurs as agents of change in relation to communities in which they operate (Barth, 1967). In that sense, he advocated for the ability of community entrepreneurs to affect existing patterns of human behavior while striving to facilitate change on a broader societal level. This idea was further supported by Schumpeter et al.’s (2002) definition of entrepreneurship, where economic motives were considered to be deeply rooted in social background, as entrepreneur represented an actor who stimulated socioeconomic progress.

Complementary to Schumpeterian approach, a lot of attention in scholar literature has recently been paid to the emergence of novel entrepreneurial approaches rooted in the context of social value creation. For instance, several authors discuss social entrepreneurship as the way to broaden conventional business approach by shifting focus to social mission of an entrepreneur in attempt to accomplish such social objectives as poverty alleviation and reduction of inequality (Hjorth & Bjerke, 2006; Kickul & Lyons, 2012). Bocken (2015) further describes sustainable entrepreneurs who are predominantly concerned about the issues of social and environmental change and act in accordance with their core values which correlate to the objectives of sustainable development. In turn, Hjorth and Bjerke (2006) focus on public entrepreneurship as they argue for shifting from traditional consumer perspective towards citizen one. This view is supported by Daskalaki et al. (2015) who underline the role of collective capacity in facilitating social change by means of entrepreneurship. From their perspective, entrepreneurship is regarded as a collective action that takes its stance on the drive and hard work of enthusiasts who perform beyond the traditional understanding of business entrepreneurship which is rooted in market operations and often represented by one individual actor (Daskalaki et al., 2015; Hjorth & Bjerke, 2006).

At the same time, by contrast to conventional entrepreneurship, community ventures often have to address the issues of gaining support in terms of financial resources given potential lack of commercial platform and difficulties to obtain business sponsorship (Borch et al., 2008). The role of resource acquisition is further emphasized in Haugh´s (2007) study on community-led social enterprises with regards to profit distribution, whereas any profit received from operation of community-led ventures is further redistributed within the community. The explicit social

15 context of community ventures is also mentioned by Borch et al. (2008) who define community entrepreneurship as a “socially oriented transformative work of people engaged in creating a better society” (Borch et al., 2008, p. 102).

In tourism-related studies, several examples of transformational activities in the face of socioeconomic challenges include the influence of human agency in form of outside entrepreneurs. For instance, Gill (2018) describes the case of Whistler, where entrepreneur was able to initiate the process of change towards sustainable development, which finally led to implementation of sustainability principles in destination policies. As another example, Nel et al. (2019) refer to the case of structural reorientation in a former mining town in New Zealand, which was triggered by arrival of a migrant entrepreneur whose efforts in restoring cultural heritage consequently attracted the inflow of new residents to the area by means of vacant housing and creation of an artistic community.

On the other hand, the potential of human agency to bring positive effects to community is deemed to be rather restricted depending on the situation in particular destination. Amongst possible issues, scholars mention existing power structures, lack of communication, and polarization within the community as suspending possibilities for efficient collaboration towards change. For instance, in her study on implementation of sustainability policies in Whistler, Gill (2018) identified that the shift in political power was one of the main obstacles that hindered potential for sustainable destination development. In turn, Haisch (2019) found out that successful implementation of new infrastructure projects in the case of Swiss Alps depended on collaborative participation of private and public stakeholders in decision-making processes. Conversely, lack of social inclusiveness caused conflicts and negatively affected further development, thus emphasizing the role of trust building between different actors in the process of social transformation.

2.3 Local community events and destination development

Definition of local community events generally refer to small-scale events that take place on a community level. WTO (2007) further defines this kind of events in relation to their governance as locally managed with predominantly municipal and regional participation by contrast to major events that take place on a broader national or international level. Characteristic for this type of events thus becomes promotion of community pride, whereas community engagement in festival activities as well as organization of the process is often encouraged by the festival committee or community itself. Jepson and Clarke (2013) further mention connection between local culture and communities as crucial for local festivals. In this way, local community

16 festivals act as an event or series of events to demonstrate connectedness of community while aiming to integrate local services and products in the structure of the festival.

In general, events are considered to be one of the major contributors for destination development given their potential to enhance destination image, generate business development and contribute to local pride and place identity building (WTO, 2007). In relation to festival and event tourism, previous research has indicated a certain interest in studying impacts of events from both tourism (González‐Reverté & Miralbell‐Izard, 2009; Karabağ et al., 2011) and community development perspectives (Blichfeldt & Halkier, 2014; Reid, 2011; Vestrum & Rasmussen, 2013). As such, there is an ongoing discussion on the contested nature of events as tools for serving predominantly tourists. In this context, George et al. (2009) state that leisure events originally developed for local residents represent the most sustainable form of events, given their focus on community needs with outside visitor attraction as an additional point of interest. The role of events in that sense could be seen as an entertainment incentive that contributes to psychosocial well-being of residents in the first place.

On the other hand, when it comes to tourism-centered perspective, the role of events is mainly considered to be contributing in relation to solving the issue of seasonality (Oklobžija, 2015). As such, Ianioglo and Rissanen (2020) find out that emergence of new events is named amongst key activities that could be used for development of destination image. This point of view is further supported by various studies in the field of tourism management where events are mentioned in form of “tactical levers” (González‐Reverté & Miralbell‐Izard, 2009, p. 55) that have a potential to distribute tourist demand more evenly during off-season periods, which is especially relevant for rural peripheral destinations.

In the context of local community events, the increasing attention in tourism and event management has been given to the importance of social ties for community development (e.g., Ziakas & Costa, 2011; Martín et al., 2020). For instance, Ziakas and Costa (2011) emphasize the notions of interconnectedness and active involvement of local volunteers and family networks as vital for the emergence of events in smaller rural communities. Bakas et al. (2019) discuss contribution of small-scale art festivals to bridging of social capital by providing platform for interaction between participants that lack tradition of communicating with each other. Similarly, Reid (2011) mentions the potential of events to improve social ties within the community while bringing the possibility to motivate visitors for relocation. Martín et al. (2020) further find that collaborative efforts used to create festivals in rural villages of Mediterranean region have massively contributed to promotion of both cultural and natural heritage, while sustaining local

17 businesses and facilitating collaborations between public and private stakeholders within destination.

At the same time, the role of community events in tourism is deemed to be rather limited, especially in the context of events that have a non-profit financial structure. As such, Jepson and Clarke (2013) state that commodification of community festivals in tourism perspective starts at the moment when such events become economically profitable, while being the only way to integrate them in destination plans and strategies. Amongst other issues, several authors have identified lack of social inclusiveness and economic dependency. For instance, Stevenson (2016) finds weak spots in event organization in form of existent power inequalities and uneven enhancement of social capital, which gives privilege to particular members of community.

As a result of such concerns, some researchers note the risk of tensed relationships between more business-oriented stakeholders and community entrepreneurs (Reid, 2011; Jæger, 2012, as cited by Hjalager & Kwiatkowski, 2018). Even though festivals often provide opportunities to sustain local businesses, difference in motives and objectives can disrupt successful operation of entrepreneurial network and mitigate potential positive impacts of the festival on local community. As such, Einarsen and Mykletun (2009) found that embeddedness of the festival in a local business network comprises one of the key factors for success of the festival. At the same time, joint dependence between local resource providers might be beneficial for non-profit community ventures in terms of social value creation, as concluded by Vestrum and Rasmussen (2013). In this way, mobilization of resources within the community can help to embed festivals in the local context while enabling them to gain organizational legitimacy (Vestrum & Rasmussen, 2013).

As a way to ensure implementation of community festivals in the process of sustainable destination development, Hjalager and Kwiatkowski (2018) further acknowledge the business perspective of rural festivals in terms of thematic cooperation with local businesses by implementing festivals´ thematic into existing tourist products and services. Suggested strategies include co-branding for enhancement of destination image and opportunity for festival to be used as a platform for testing new entrepreneurial ideas (Hjalager & Kwiatkowski, 2018).

At the same time, with predominant focus on event participants as consumers of experience, festivals are usually seen as products of commercialization (Armbrecht et al., 2020). In this regard, it is important to investigate the role of a local festival in tourism entrepreneurial network as a non-profit community venture which brings disruption to traditional ‘business-as- usual’ model. Given the increasing role of small-scale events in facilitating social change (Bakas et al., 2019), further research is needed to explore the potential of such events in sustaining

18 development of peripheral destinations and define existing issues and opportunities that might be applied by policy makers and other interested actors within destination.

3. Theoretical approach

For theoretical framework of my thesis, I have chosen to use the concepts of social capital and social embeddedness. According to the aim of my research, I find these theoretical grounds especially useful in regard to spatial and socioeconomic characteristics of peripheral destinations, where social context has played an important role for formation of community ventures and entrepreneurial networks.

Prior to the research process, actor-network theory (ANT), bricolage and trust building were considered to be applied amongst other suggested theories. First, ANT was taken into consideration, as it would allow to specify the role of actors involved in the network according to different stages of translation process, which could help to explore the formation of relationship between the festival venture and community. However, this theoretical approach was excluded given the complexity of roles found within the network, as well as the explicit focus of ANT on environmental perspective which was irrelevant to the stated research topic. In turn, application of bricolage theory was dismissed due to its resource-based approach which, even though it could be useful to investigate how the formation of community venture took form, lacked specific focus on social relationships that might have affected this development. Lastly, trust building theory was found to be more relevant for longitudinal studies, as time constraints would limit deeper investigation of interpersonal relationships needed for such research, also considering lack of opportunities to participate in formally organized events within the studied network.

Given previous studies in tourism and event management that revealed the increasing role of social ties for community development (e.g., Ziakas & Costa, 2011; Martín et al., 2020), the purpose in choosing social capital theory is thus to gain deeper understanding on how a set of social relations within the entrepreneurial network affects development of peripheral destination, whereas the concept of social embeddedness will enable to explore the current status of the studied festival within local business community.

3.1 Social capital

While being an ill-defined concept, definition of social capital is deeply rooted in power relations and social settings affecting residents on an individual level (Bourdieu, 1986). In Bourdieu´s (1986) perspective, social capital provides “the sum of the actual or potential resources that are linked to the possession of a durable network of more or less institutionalized relationships of mutual acquaintance and recognition—in other words, to membership in a group” (Bourdieu, 1986, p. 248). Another popular definition belongs to Putnam (2000) who refers to social capital as connections between individuals and networks while elaborating on the notions of trust and reciprocity. Social 20 capital, in this aspect, could be seen as resources of community which reside particularly in social bonds and ties this community possesses, including a range of networks such as business, family, institutional and civic networks (Woolcock, 2001; Bhandari & Yasunobu, 2009).

On the other hand, there has been critics on the appropriateness of usage of ´capital´ in the context of social relationships. Amongst various points of view existing in scholar literature, Bhandari and Yasunobu (2009) mention suggestions to replace the term of social capital with ´social resources´ or to narrow it down to ´community´ given its focus on social groups that populate chosen locality (Inkeles, 2000; Bowles & Gintis, 2002, as cited by Bhandari & Yasunobu, 2009). The idea of community in this context is defined by notions of social interaction, networks and connectedness concentrated on one specific territory (Pedlar, 1996). In these terms, social capital becomes specifically important for rural peripheral communities, where it is often characterized by kinship, interdependency and strong social ties (George et al., 2009).

At the same time, the concept of social capital is widely used in the context of social change and resilience (Kokorsch, 2017; Kaltenborn et al., 2017). For instance, Woolcock (2001) states that “communities endowed with a rich stock of social networks and civic associations will be in a stronger position to confront poverty and vulnerability, resolve disputes and/or take advantage of new opportunities” (Woolcock, 2001, p. 67). This view is further supported by George et al. (2009) who argue that formation of the community identity is directly affected by social capital presented at the destination and is dependent on the strength of this capital.

According to Woolcock and Narayan (2000), social capital typology can be further extended based on the perspective of the viewer. As such, authors distinguish between communitarian view in relation to local organizations, network view which is associated with small and medium-sized enterprises (SMEs), institutional view with focus on public and private sectors, and synergy view that combines all the stated perspectives (Table 1). While the focus of this research lies mostly within the entrepreneurial network perspective, it would be relevant to consider applying the network view in the context of this thesis. However, synergy view is given preference, as it provides an overview on social capital presented at several different levels, which gives better understanding on the role of social relationships at the particular destination. In this way, social capital is considered to represent a variety of social groups and organizations within the destination that together build up a network of stakeholders with ability to act and participate in decision-making processes.

community (local organizations)

synergy

institutions network (public - (SMEs) private)

Table 1. Social capital typology (Woolcock & Narayan, 2000)

3.2 Social embeddedness

The concept of social capital is intertwined with the notions of social networks and embeddedness (Czernek-Marszałek, 2020a). For instance, Bhandari and Yasunobu (2009) describe it as “an investment in social connectedness through which resources of other actors can be accessed and borrowed” (Bhandari & Yasunobu, 2009, p. 490). Presented in the context of economic market, Granovetter (1985) develops this idea into the concept of social embeddedness, where existing social relations play an important role in affecting market transactions. In this context, social embeddedness is commonly represented by the notion of strong social ties which are characterized by emotional involvement, trust building and reciprocity, by contrast to weak ties which are usually limited in time and rather formal in their structure (Granovetter, 1973). Following the concept of structural embeddedness, some scholars further distinguish between arm´s-length and embedded ties, whereas the former ones use rules to shape the structure of social exchange, while in embedded ties the notion of rules is replaced by trust and solidarity (Uzzi, 1997; Uzzi, 1999).

Amongst other benefits of social embeddedness, scholars name the possibility of resource sharing, stimulating innovations and establishing common identity between different stakeholders (Czernek-Marszałek, 2020a). In terms of tourism, resource-based approach is often used to define the role of different stakeholders in existing entrepreneurial networks. For instance, Strobl and Kronenberg (2016) find that hospitality entrepreneurs in Austrian Alps are mutually dependent on resources of each other, access to which vary depending on the particular stage of business lifecycle. Furthermore, they conclude that strong ties based on kinship and intergenerational aspect often act as

22 a basis for formation of competitive networks. In this way, the notion of economic gain in market transactions becomes embedded in the context of social norms and structures.

On the other hand, Granovetter (1985) also mentions the problematic of both under- and oversocialization as potentially jeopardizing for economic operations. In the former case, the role of social relations is neglected, and the market is seen as a rather anonymous formal structure in the absence of interaction between individuals within the firms (Granovetter, 1985, p. 495). Conversely, overembeddedness is characterized by overexaggerated level of embeddedness that might hinder further cooperation while limiting inflow of new ideas and cause conflicts in relationships (Czernek- Marszałek, 2020b). As such, existing power structures can sabotage efficient collaboration within the network and pose the risk of nepotism depending on predetermined sociocultural context, as in the case of tourism business network in Wisla (Czernek-Marszałek, 2020a; Czernek-Marszałek, 2020b).

Hence, the concept of social embeddedness is inseparable from understanding the cultural and spatially induced aspect of networking. Given the notion of geographical remoteness and low population density of Iceland, social relations become especially important for building of community identity and local pride. Strong ties between family members and friends are also prevailing in the business context, whereas the predominant form of entrepreneurial activity is represented by SMEs (Jóhannesson et al., 2010). In this way, informal institutions and social structures play an important role in regard to overall business culture in Iceland, where social embeddedness comprises a tool to sustain local firms and organizations.

3.3 Contribution to existing research

While previous research on rural community ventures has predominantly used theories of evolutionary economic geography (EEG) and resource dependence (Gaddefors et al., 2020; Jæger, 2020; Vestrum & Rasmussen, 2013), application of social embeddedness is relatively novel in the field of entrepreneurship. As wider business aspect is neglected, further research is needed to gain a broader view on the impacts of non-profit community festivals on local tourism enterprises. In that perspective, chosen theoretical framework helps to explore the role of social relations in business interactions within community. The context of peripheral destination is thus especially helpful to examine the link between social capital and destination development given the relatively small size of population, which enables to easier find connections between different stakeholders. In turn, this research is contributing to the field of sustainable destination development, as it provides a novel perspective on relationships within tourism entrepreneurial network in regard to the festival as an external actor, at the same time defining opportunities for collaboration that might be implemented for tourism development in practice.

4. Study area

4.1 Ísafjörður

4.1.1 Overview

Ísafjörður is a town in the northwest of Iceland that is located 454 km from the capital area of Reykjavik and comprises the largest settlement of the Westfjords region (Figure 1, 2). Following the amalgamation of municipalities in 1996, Ísafjörður became an administrative center of Ísafjarðarbær municipality which also includes villages Hnífsdalur, Flateyri, Suðureyri and Þingeyri with total population of 3,794 inhabitants (Statistics Iceland, n.d.a). The town is located on a narrow land spit within the Skutulsfjörður fjord, which has been a precondition for building a harbor that is naturally protected between the mountains (Port of Ísafjörður, 2010). Historically, Ísafjörður has been seen as a center for fishing and trade that attracted merchants from other Scandinavian countries (Guide to Iceland, n.d.b).

Figure 1. Map of Iceland with highlighted location of the Westfjords region (When are you going home, 2017)

Nowadays, the town’s economy is still mainly reliant on fishing. At the same time, Ísafjörður has a relatively diverse economy compared to other Icelandic settlements with similar spatioeconomic characteristics (Benediktsson & Skaptadóttir, 2002). As such, the town has a rather developed urban area with infrastructure that involves a healthcare institute, gymnasium, university center and airport, thus making it perform as a major service center for nearby villages as well as the whole region of the Westfjords. The town also hosts main headquarters for

24 municipality and the region, where the latter one is represented by the Regional Development Office Vestfjarðastofa.

Figure 2. Map of the Westfjords region (NAT, n.d.)

Besides fishing and administrative sector, Ísafjörður possesses a range of cultural institutions, including Westfjords Heritage Museum and two music schools. The town is also known for its skiing area and is famous for hosting a range of sports and cultural events such as Ski Week, a theatre festival Act Alone and a music festival Aldrei fór ég suður (AFS).

Modes of transportation include air, water and road transport. However, accessibility remains to be limited, especially during wintertime, given prevalence of harsh weather conditions in the area. One of the recent developments introduced to increase transport accessibility includes an opening of a tunnel link Dýrafjarðargöng between Arnarfjörður and Dýrafjörður, which is aimed to improve the previously complicated connection between the northern and southern parts of the Westfjords (Hafstað, 2020). 25

4.1.2 State of tourism in Ísafjörður and Westfjords According to Butler’s (1980) tourism area life cycle model (TALC), the Westfjords region can be found on the involvement stage of area evolution, which is characterized by relatively regular tourist season and emergence of initial tourist market. However, during recent years, tourism industry in the Westfjords has experienced gradual growth. As such, the number of visitors in registered accommodation has increased more than twice since 2009, ending up at almost 140,000 people (Figure 3). The whole destination is characterized by limited seasonality with the main tourist season which starts in May and lasts typically until September. The main tourist attractions in the area are predominantly nature-based including a bird cliff Látrabjarg, waterfall Dynjandi and a nature reserve Hornstrandir. At the same time, Ísafjörður has gained increased popularity as a cruise destination, being the third busiest port in Iceland with 126 ships arrivals in 2020 (Cruise Iceland, n.d.).

Figure 3. Number of visitors at all registered accommodation in the Westfjords 2009-2019 (Statistics Iceland, n.d.b)

According to destination strategy of the region, a common vision of tourism in the Westfjords by 2024 refers to the Westfjords as “a sustainable quality destination where profitable tourism is run in harmony with the environment and society” (Markaðstofa Vestfjarða, 2020). Amongst key objectives for sustainable development of tourism, destination plan includes strong cooperation between private and public stakeholders, extension of tourism season and focus on benefits for environment and society. Given the remoteness of destination, mass tourism is neglected in favor of independent travelers who prefer high level of service and are willing to stay longer and pay for quality (Markaðstofa Vestfjarða, 2020).

One of the current key projects to promote tourism in the region includes Vestfjarðaleiðin [The Westfjords Way] – a tourist route developed in collaboration between regional DMOs Visit Westfjords and Visit West Iceland (Figure 4). The driving route of 950 km comprises a circle around Westfjords and part of West Iceland including recommendations on stops for both nature- based, cultural and tasting experiences (Vestfjarðaleiðin, n.d.).

Figure 4. Map of Vestfjarðaleiðin (Vestfjarðastofa, n.d)

In a regional strategic plan for the period between 2020 and 2024, development of tourism is further stated as one of the main opportunities for strengthening the position of the whole region of the Westfjords (Vestfjarðastofa, 2019). By contrast, the main issues defined include inadequate transport infrastructure and lack of services to sustain tourism-related activities. Lack of cooperation in organizational matters and lack of business supervision are further mentioned as main threats for future development. On the other hand, high percentage of income from culture and arts compared with other parts of the country, together with strong music school and rich cultural life comprise main strengths, provided that cooperation between culture industry and businesses should be improved (Vestfjarðastofa, 2019).

4.2 Aldrei fór ég suður

Aldrei fór ég suður (AFS) is an annual music festival taking place during Easter weekend in the town of Ísafjörður. Held since 2004, it is originated from the idea of a local musician Örn Elías Guðmundsson, also known as Mugison, and his father Guðmundur Kristjánsson (Muggi) of “arranging a big festival in a small community” (Aldrei fór ég suður, n.d.). The focus lies in 27 embracing local community by involving local music actors together with more well-known national artists while encouraging locals to play music and express creativity:

We made a commitment to form this festival in Ísafjörður for a one time show and we said to each other: it's done, and we're gone. But then people liked it so much that the festival is still here. (…) There was no intention to move on, no targets at all. Our aim was to encourage local people to form a group and play music - teenagers, old people, whatever. (G. Kristjánsson, personal communication, March 19, 2021)

Translated as “I never moved south”, the name represents a partially ironic expression borrowed from the song of an Icelandic singer Bubbi Morthens, which generally portrays reluctance to move to the south of Iceland, even despite introduction of fishing quotas which has significantly affected subsistence of smaller fishing villages in Iceland in 1990s (Islandsbloggen, 2020; Benediktsson & Skaptadóttir, 2002; Kokorsch & Benediktsson, 2018a).

Furthermore, AFS comprises an integral part of the grand Easter celebration in Ísafjörður acting as a supplement to traditional Ski Week. The festival is promoted as a “free for all – fun for all” (Iceland Magazine, 2014) event with a family-friendly atmosphere allowing visitors of any age to take part in the happening and is commonly referred to as a “rokkhátíð alþýðunnar” [rock festival for people]. In 2018, AFS was also granted the Icelandic Music Awards prize as “Musical Event of the Year” (Íslensku tónlistarverðlaunin, n.d.).

In organizational aspect, AFS acts upon an officially registered non-profit organization chaired by a festival director (rokkstjóri) who is elected by the festival committee once in four years. Its operating costs are mainly tackled by sponsorship from various local and national stakeholders and support from municipal and regional government. Festival organization mainly relies on the help from volunteers from local associations, such as sports clubs (Ólafsdóttir, 2016). The revenue part consists of selling food and beverages during the festival itself as well as merchandise production which also can be purchased online. In general, festival gains the near- zero profit, whereas current agreement with municipality on providing funds is held until the festival goes in debt (G. Kristjánsson, personal communication, March 19, 2021).

5. Methodology

5.1 Research strategy and design

In regard to tourism entrepreneurship, Solvoll et al. (2015) indicate the rising number of studies using quantitative methodology during the recent years, with surveys being the most popular method for collecting data. One of the possible explanations for this could be a more simplified way to structure information and present findings. For instance, surveys can be especially useful in situations of limited access to the study area where connection to participants can only be made by means of telecommunications (see Karabağ et al., 2011, for example).

However, while quantitative methodology is especially useful for identifying patterns and further generalizing based on excessive sampling of data, it lacks to define specific reasons and assumptions that lie behind responses. In turn, qualitative research strategy remains to be widely used to determine perceptions and attitudes related to the emergence of specific phenomena. By contrast to quantitative methodology, which is based on the natural science model, qualitative strategy calls for broader understanding of the studied object and aims to provide empathic understanding of human behavior by means of interpretivist epistemology (Bryman, 2012, p. 629). At the same time, limitations of qualitative methods include lack of generalizability due to often restricted amount of data, time constraints and possibility of researcher’s bias in relation to interpretation and collection of data.

In regard to the stated research questions, I have decided to apply a qualitative strategy for my research, as it would enable to gain deeper understanding on relationship between the studied phenomena by exploring perceptions of tourism entrepreneurs towards the studied festival. Possibility to use mixed methodology in form of inquests, a hybrid method combining interview and questionnaire, was also discussed. In these terms, questionnaires could be seen as a complement to the answers mentioned in interviews. However, this strategy was excluded due to time constraints related to the process of data collection and analysis.

Given the complexity of the research topic, ethnography was further applied as a complementary approach in order to gain more comprehensive knowledge about the setting in which the stated music festival takes place. Ethnography is defined as a research process which implements predominantly qualitative techniques in order to engage the researcher into the lives of studied objects or phenomena (Aull Davies, 2008). In these terms, one of the main advantages of ethnographical method is immersion of the researcher in the setting that provides diverse opportunities to collect data by means of such methods as observation and unstructured interviewing (Holloway et al., 2010). 29

In accordance with the aim of research, the type of research design chosen for this thesis was a case study approach. Initially, the possibility of doing a multiple case study including several festivals in Iceland, such as Bræðslan in Eastern Region and Þjóðhátíð on Vestmannaeyjar, was considered. However, given different historical background and size of communities, possibility for generalizing was deemed restricted. Combined with time constraints related to thesis writing, it posed a risk of lacking time to include proper investigation of all the cases. Therefore, single case study was given preference due to limited spatial and temporal settings in which research took place. In this way, it has enabled to investigate the festival as a specific phenomenon while putting it into the context of local community.

5.2 Data collection

5.2.1 Research methods Various primary and secondary research methods were used to collect data for this research including document analysis in form of books, academic articles, press releases and previous theses, Internet searches, personal conversations, interviews and field observation. The initial stage of research involved collecting data on AFS on Internet which was further complemented by searches on scholar literature related to the community of Ísafjörður. Given the lack of information available in English, Google Translate extension was used for translating articles from Icelandic where possible.

Given the ongoing COVID-19 pandemic, types of research methods which include active interaction in larger groups, such as interviewing in focus groups, were excluded from suggested research methods. Possibility of using surveys was considered as an optional method to complete responses received during interviews. However, preference was given to semi-structured interviews since they provide more detailed responses, including possibility of contributing with additional data that could be of importance to the studied topic (Bryman, 2012).

5.2.2 Sampling In order to compile a list of potential interviewees, information about active tourism-related stakeholders was collected from the website of a regional destination management organization (DMO) Visit Westfjords. The studied categories included dining, accommodation, transportation, cultural and sports activities, and tour operators. As target group consisted of tourism entrepreneurs in Ísafjörður, it excluded the possibility of sample randomization and enabled to entail purposive sampling due to limited number of currently operating tourism enterprises in the area. As the research process evolved, it was decided to include entrepreneurs from the nearby areas in the northern part of the Westfjords including villages of Flateyri, Bolungarvik, Suðureyri 30 and Þingeyri as to determine similar patterns and differences in their perceptions about the festival (Figure 5). In order to better understand the spatial context, distances between Ísafjörður and mentioned villages are presented in Table 2.

Figure 5. Map of the study area (adapted from Google, n.d.)

Village Distance from Ísafjörður Bolungarvik 14 km Suðureyri 23 km Flateyri 22 km Þingeyri 49 km Table 2. Distance between Ísafjörður and villages in the study area

At the same time, in order to acquire a more comprehensive view and familiarize myself with the overall situation at the studied destination, the list of potential participants was extended to include both public representatives from regional and municipal entities, private actors from civic associations involved in the festival organization, and several representatives from the festival committee. During the initial stage of research, access to the local network of actors in Ísafjörður was arranged with help of my supervisor Guðrún Þóra Gunnarsdóttir at Icelandic Tourism Research Centre (ITRC), who provided me with contacts at The University Centre of the Westfjords (UW) and in this way helped to gain access to the wider network of stakeholders in the studied community. Followed the project development, snowball sampling was further applied by asking respondents to provide recommendations on suggested actors of interest at the end of interviews. In this way, final sampling of interviewees represented a mix between purposive sampling with focus on tourism-related entrepreneurs in Ísafjörður and surroundings, and snowball sampling of local stakeholders as to acknowledge the researcher with the overall organization of AFS and community in general.

5.2.3 Research process The whole research process went in three main stages including pre-study phase where I collected data by means of desk research, prepared interview guides and contacted potential participants, fieldwork, and data analysis with final writing up. The fieldwork took place from 16 March to 2 April 2021 in Ísafjörður. Prior contact with potential participants was established via mail in form of interview requests by using available information on relevant employees on the websites of the Regional Development Office, Ísafjarðarbær municipality, and Visit Westfjords. During the fieldwork, information on tourism-related entrepreneurs was further collected from physical maps of Ísafjörður and municipality found at UW, as they included advertisement on tourism-related activities in the area. Complementing to this, field observation included search for information on advertising boards in local shops. Further observation included a one-day trip to Flateyri and Þingeyri, during which one semi-structured interview with tourism entrepreneur was complemented by informal talks with local residents.

As the number of mail replies was limited, other approaches included contacting entrepreneurs via enterprises’ pages on Facebook or directly at their physical offices in town if it was possible. In order to engage a broader sampling from different business categories, phone calls were used, and in case a person expressed unwillingness to participate in a proper interview, brief unstructured phone interviews were conducted. The most common reasons for not being willing to participate included seasonal opening of business during summertime and lack of established relations with the festival. 32

Based on semi-structured nature of interviews, an interview guide was developed prior to the interviews. The guide was divided into several sections with questions depending on the category of an interviewee (e.g., tourism entrepreneur, regional or municipal representative). For instance, questions for entrepreneurs were aimed to define their relationship with AFS along with individual perceptions about the role of the festival within entrepreneurial network (see Appendix 1 for an example), whereas questions for regional and municipal representatives considered broader aspects in relation to overall community and destination development.

In total, 24 semi-structured interviews were conducted. By contrast to phone talks which were not recorded, semi-structured interviews were recorded by means of audio recorder on mobile phone. Five of these interviews were conducted online in form of video calls via Zoom and recorded directly by means of video recording function. All interviews were complemented by the process of taking notes during conversations. The average time of semi-structured interviews did not exceed an hour, whereas some interviews were complemented by further communication via mail in order to clarify information that was regarded as insufficient for complete understanding of the answers.

As part of ethnography process, exploring local community by means of informal meetings with community members, as well as general observation of the destination enabled me to acquire an insider’s perspective needed for better understanding of the setting. In this way, the process of fieldwork in Ísafjörður helped me to immerse into local community and contributed to more holistic understanding of its cultural codes and values, which has proven to be especially beneficial given the absence of previous knowledge about the study area.

5.3 Data analysis

Amongst collected data, transcripts from interviews, field notes and desk research were used. Interviews were transcribed by means of a built-in transcribing function in the web version of Microsoft Word 365 supplemented by a web-based tool Otter due to existing time limits in Microsoft. Additional manual transcription was provided where needed. In order to process data, I have employed thematic data analysis to determine recurring themes and identify patterns when researching interviewees´ attitudes and perceptions about the festival. Data from interviews was then summarized manually in an Excel table for the purpose of structuring data in order to get a brief overview over collected information. Afterwards, this data was further analyzed based on common topics identified from interviews.

In order to distinguish between different categories of interviewees, color and number coding was applied (see Appendix 2). For instance, codes R and M were used to determine regional 33 and municipal representatives. In order to distinguish between different categories of entrepreneurs, a double-letter code was used. As such, the first letter E implied the belonging of interviewee to entrepreneurs while the second letter varied depending on the category of enterprise. For instance, the letter H stood for hotel and accommodation, D for dining, T for tour operators, C for culture and M for mixed activity. Given that the most interviewees combined several roles, for instance, being both regional representative and a part of the festival planning committee, I have chosen to focus on the predominant role in which interviewee was contacted initially. The *-mark was further applied for coding as to underline the actors involved in the organization of AFS, either as volunteers, suppliers, or part of the festival committee (Table 3). In this way, application of coding to recurring topics and categories of interviewees opened the possibility for further categorization within defined groups and subgroups of themes and enabled to ensure easier access to data.

Code Description R# Regional representative M# Municipal representative C# Civil organization representative E Entrepreneur: EH# - Hotels and accommodation ED# - Dining ET# - Tour operators EC# - Cultural institutions and museums EM# - Mixed facilities * Involvement into AFS (part of committee/volunteer/service provider) Table 3. Description of interview codes

Note. “#” is a number of interviewee

5.4 Research ethics

In accordance with general principles of ethics mentioned by Diener and Cranvall (1978, as cited by Bryman, 2012), one of the key concerns was related to inconvenience caused by sharing information with researcher as an outsider. As such, one of the representatives of the festival planning committee had to first receive consent from other participants of the committee in order to be able to share information, which complicated planning of the research process. In attempt to establish connection with population, an introductory letter including general information about the project, researcher and a link to publications on the websites of ITRC and UW was distributed

34 together with interview requests. This was done in order to familiarize potential interviewees with the aims of research and the figure of researcher, as well as to add credibility to the sent requests.

Another issue constituted potential violation of privacy given generally low level of responses via formal means of communication, such as mails and official websites. In order to gain access to the broader sampling, it was decided to contact some of the enterprises via Facebook or phone, which could be intruding given possible lack of will to participate in the research. At the same time, this strategy has proven to be more efficient, as it helped to initiate contact more easily than via mail and in some cases led to arranging interviews.

According to the global code of ethics, all interviewees were informed about confidentiality of their answers and the use of data solely for the purpose of research. Informed consent was received prior to recording of interviews, whereas received replies were anonymized by means of coding (see Chapter 5.3). Information gained from informal meetings with locals was excluded from data collection. In this way, covert observation was applied only in terms of general understanding of community where the studied festival took place and excluded possible violation of privacy.

5.5 Research limitations

5.5.1 Low generalizability A multiple-case design would be more appropriate for this study in terms of theory construction and further elaboration on findings. However, as it was noted before, preference was given to a single case study due to existing time constraints in the process of thesis writing and lack of previous knowledge on Icelandic communities in general.

5.5.2 Limited temporal perspective Given a restricted timeframe of this research project, the quality of findings could suffer due to limited opportunity to gain a more holistic perspective. In this case, research design in form of longitudinal study would be to prefer. Regular observations could contribute to achieving deeper insights into the evolution of entrepreneurial network within the community while extending the knowledge on the stated research subject.

5.5.3 Language barrier and outsider perspective Being considered as an outsider for community has limited access to a broader group of stakeholders in the absence of previously developed social ties. Lack of previous knowledge on the study area has also made the process of data collection rather challenging and time-consuming, while not being able to understand the language has restricted the ability to fully immerse into the

35 culture of studied community and embrace its cultural codes and values. Lack of knowledge on the sociocultural background of interviewees has also limited understanding of their views and perceptions that might have in turn affected results of this study.

5.5.4 Considerations related to COVID-19 Uncertainty related to the ongoing COVID-19 pandemic has also affected the process of data collection, as it was not clear from the beginning whether the event was going to take place on site. Given constant changes made in current regulations and lack of clarity on the overall permission for arranging the festival, it was difficult for festival organizers to find time for interviews in their schedule. As for tourism entrepreneurs, lack of clarity imposed due to the pandemic made it difficult to find information about opening times of enterprises, which made the process of data collection rather challenging. Final imposing of stricter regulations on gatherings in Iceland on 24 March hindered the possibility to arrange the festival and affected the research process, as several enterprises were forced to close and expressed lack of willingness to participate in interviews due to cancellation of the event.

5.5.5 Possibility of bias As social ties defined through the process of fieldwork were deemed to be rather strong, in some cases it was difficult to categorize between different roles of one interviewee. In turn, risk for bias was higher for people who expressed their previous involvement in AFS, given generally more positive attitude towards the festival by contrast to participants who lacked personal connection to the festival.

At the same time, difference in perceptions has also affected results of the research, since one respondent could have varied opinions depending on which role was taken during the interview (e.g., as a local or as an entrepreneur). In this way, majority of expressed opinions remained highly subjective and not representative for the whole population in general, which further limited generalizability of findings.

6. Data analysis

In this chapter, findings of the research are presented in form of recurrent themes discovered in the process of data analysis. Based on processed data, the first subchapter is divided in three topics which aim to specify the role of AFS for sustainable development of Ísafjörður and surroundings. In order to answer the stated research questions, I first focus on perceptions of local entrepreneurs in hospitality sector towards the festival. Afterwards, I examine the role of AFS for tourism development in the area, and finally, I define its contribution to the local community. Further discussion is provided in attempt to reflect on findings while applying chosen theoretical framework. Summarized findings are presented in form of SWOT-analysis of the festival in Appendix 3.

6.1 Findings

6.1.1 The role of AFS for tourism entrepreneurial network

Given the existing state of tourism in Ísafjörður and surroundings, the majority of tourism- related enterprises are represented by privately owned SMEs operating on a seasonal basis. Hence, it restricts the impact of AFS on such businesses as an event which takes place outside of the main touristic season. However, by analyzing data from interviews and observations, it was found that AFS affects local businesses diversely, whereas the level of its impact varies depending on the category of business, its location, seasonality and target groups.

6.1.1.1 Accommodation

Most of the interviewed business owners stated that their services are usually operating during Easter, however, the general impact of AFS on accommodation sector in the study area could be deemed rather limited. Amongst reasons for that, owners of private guesthouses mentioned limited number of rooms and different target groups with the festival. Referring to the latter issue, a business owner from Suðureyri specified difference in budgets between target groups of the hotel and the festival:

When you have a high-rated and more expensive accommodation, then we are maybe not the target group for people who are coming for a cheap rock festival and want to spend little money? - EM3

Additionally, several accommodation owners from Flateyri and Þingeyri mentioned low impact of AFS on their businesses, as tourists usually visit their settlements for the sake of dining, sports and leisure activities. In that sense, the spatial factor was found to be one of the main issues for businesses located outside of Ísafjörður: 37

People are drunk, they have to go to Ísafjörður – it is 20 kilometres, and you have to have a driver. If you are staying in Ísafjörður, then you can at least walk to your hotel or house. With these 20 kilometres, you have to find a driver to drive you and that is too much for most of the people who are in this [festival] group. That's too far away. - EM3

Another reason is associated with preexisting connection to the region, where the most part of visitors coming to the area during Easter chooses to stay with their relatives. In turn, it is problematic to fill the hotel rooms, which makes it economically unfeasible to open privately owned businesses, especially in times of pandemic. On the other hand, given the stable growth of the festival during pre-COVID years, several participants talked about lack of suitable housing to accommodate guests with lack of connection to the Westfjords, which demonstrated the need to introduce temporary housing options that would consider interests and paying opportunities of this customer group.

Respectively, the impact of AFS on formally organized accommodation facilities in Ísafjörður was found to be slightly higher than for privately owned lodging. That could be related to the lack of adequate accommodation in town during Easter holidays and proximity to the wider range of services. At the same time, the common denominator in that case refers to incapability to distinguish between the impacts of AFS and Ski Week given the lack of monitoring on the motivations of guests coming to the town during Easter time. A hotel owner from Ísafjörður further mentioned that even though the common impact from AFS and Ski Week is seen as interrelated, the impact of the former is not critical for their business:

What would happen if we had not had Aldrei [AFS] here? I think we would still have the skiing tracks that would attract [people] and we could try to have some skiing courses and stuff. I think we would still have skiers to come, but it would be much less of everything if we had not had Aldrei. But I think we would survive the Easter time. - EH2

Possible areas of collaboration Amongst possibilities for collaboration, interviewees mentioned offers on extra nights for prolonged stay and better transportation options during the festival weekend. In this way, accommodation packages could subsequently increase usage of local services and contribute to more even distribution of load on the tourist infrastructure in town. As one respondent said:

Because of Aldrei, we see people sometimes just coming here on Friday and leaving on Sunday. It's a very short stay because there's a lot going on [during Ski Week], and people could be here from Wednesday to Monday. (…) Something that could change in tourism management is that

you're just selling a package for accommodation, like, you just can't book less than three nights. – M3

Providing public or private transportation options was relevant concerning the spatial factor that limited the effect of AFS on businesses outside of Ísafjörður. An entrepreneur from Flateyri pointed out possible solution with direct taxi transportation to Ísafjörður, mentioning the possibility of collaboration with a local driver. At the same time, this opportunity was questioned due to perceived insufficient demand from hotel guests:

One of the reasons for why they [guests] don't come to Önundarfjördur is transport. If there could be a bus from our hotel or whatever, we could figure out something. I mean, there's a taxi driver just two farms away, so we could always collaborate with him. That could be something, but I don't know if demand is high enough. – EH3

6.1.1.2 Dining

The impact of AFS on dining sector in Ísafjörður and surroundings is considered to be generally high. Most part of the interviewed dining owners stated that their businesses operate on a year-round basis, which makes Easter holiday one of the main sources of income throughout the year. For instance, a restaurant owner from Ísafjörður mentioned high demand from visitors during the festival weekend, which makes him switch business to round-the-clock work schedule, adding that “because of them [AFS] my business is booming” (ED1).

Another restaurant owner pointed out the explicit role of AFS for sustaining their business in the long term and brought it up as one of two key income-generating periods together with Christmas holidays:

If we had not had two stones sticking up from the river – where we will consider the river the wintertime – you have to be capable of getting over the river to get to next summer, because next summer is on the other bank of the river. But if you can't make it over the river – over the winter – then you're not going to make it next summer. We have two steppingstones coming up from the river, that is Christmas season with smørrebrød and Christmas buffets, and the second one is Aldrei. – ED2

The potential of AFS to bring financial benefits for dining sector is further expressed in the extensive amount of income generated per festival weekend. In some cases, it might even exceed monthly revenue of the business in festival-free period:

[During] three days and three nights, we have had here in this restaurant more income than we had three months prior to Aldrei: January, February and March. If you combine those three months sales, we have in a very good Aldrei selling more per day then per month. – ED2

For dining facilities in nearby settlements, the emergence of the festival was found to be one of the main reasons to start the season. As such, a coffeehouse owner from Þingeyri stated that their business is operating exclusively during Easter weekend and summer, as their target groups include foreign tourists and people coming from Reykjavik to visit the festival. During field observation, owners of another coffeehouse in Flateyri specifically mentioned that the loss in the number of visitors due to COVID-19 further revealed the importance of AFS for their business. Subsequently, following cancellation of the festival, several dining facilities had to reschedule their planned opening times given the absence of festival visitors.

At the same time, even in the case of dining sector, unanimity has not been reached since some of the participants mentioned certain skepticism towards the impact of AFS. For instance, an owner of a combined accommodation and dining facility in Suðureyri expressed his reluctance towards opening the business during Easter. His concerns were motivated by limited possibility to gain profit during the festival period and costs associated with this opening:

We cannot start a business for some people coming just for two-three hours. For us to open up the whole system, it would cost too much money. – EM3

Possible areas of collaboration Several interviewees mentioned the possibility of providing their facilities as a space for events, meetings and catering during the festival. As such, an owner of a dining facility in Ísafjörður talked about current interest in hosting concerts with some of the musicians playing at the festival:

For example, if there is someone very popular playing at the festival, I aim for trying to get that person or that band to play here, because that saves me from traveling costs and housing that have already been taken care of by Aldrei. – ED2

However, he noted that his initiative to collaborate with AFS was previously met with lack of enthusiasm from the festival committee as demand in having festival artists had already exceeded the existing supply:

I've also tried to talk to them [AFS] about like, why don't you, guys, use it as a tool to get a better number, saying, hey, if you come, then I can let you also play over here at my place, where you

can have a fee from the door up to one and a half million [Icelandic] kronor. They said it's so popular to cap musicians, they don't have to do it. – ED2

Another business owner who was also in charge of fish processing company talked about possible collaboration in the food catering sector stating that usage of local products could also strengthen the festival image:

Why selling hot dogs in the area where we are processing fish? My company can give people fish rather than selling them hotdogs from the southern part of the country. I think people here have to be more proud of what we're doing here in this area. We don't have to import goods from other parts of the country to give people products like that. It can be an ideal good solution for us to just pay their [AFS] concerts for giving people fish and chips on this festival. – EM3

At the same time, the self-reliant and independent nature of the festival was pointed out by some respondents as one of the issues that might limit possibilities for further collaboration. For instance, one interviewee mentioned the notion of competitiveness in terms of food and beverages supply during the festival:

They [AFS] are selling food and drinks and everything the same as I'm doing, so I haven't yet found the opportunity to do that [collaborate], and also because it's a bit of a busy weekend for me and my business. I'm not sure I am able to do anything more associated with them. – ED1

Several entrepreneurs from the areas outside of Ísafjörður also talked about restricted opportunities of AFS to contribute to their business development. For instance, a business owner from Suðureyri mentioned the difference between the culture of towns in terms of the nature of events:

This [AFS] is a festival for Ísafjörður. Even though Suðureyri is a part of Isafjardarbaer municipality, it's totally different between the towns and how they are working. (…) We have our festival here in our small town, and Ísafjörður have their culture for their own festival. – EM3

This point of view was further supported by an interviewee from Þingeyri:

I think it [festival] is mostly for Ísafjörður. (…) I think it has landed at this point where we make our own little program with stuff happening, they have their kind of concerts, and then people can just choose to go here [Þingeyri] on a Sunday afternoon or whatever. I think it works quite well. I don't think we need to do much more. – ED3

6.1.1.3 Tour operators

In the category of tour operators and guides, the level of responses and willingness to participate in the research project was amongst the lowest. One of the main reasons for that was related to high seasonality of tour operating industry in Ísafjörður. As such, a manager of one tour agency refused to participate in the interview stating that the impact of AFS on their business was non-existent given the focus on providing day tours for foreigners coming with cruise ships during summer.

Difference in target groups was also mentioned as one of the main obstacles for enhancing the role of AFS and its impact on tour operators. In relation to this, a private tour guide mentioned the low potential of the festival to contribute to her business given specific interests of her customers which were unrelated to the festival:

It's not my target group, because people who want to take a walk with me, they have interest for history, houses and environment, other kinds of cultural things than only rock music. – ET1

Representative of another tour agency mentioned previous attempts to organize boat tours during the festival period, which were thought to be a form of a festival “pre-party” (ET2). However, this initiative did not gain success given relatively high budget of these tours which could affect their attractiveness for festival visitors. At the same time, she mentioned higher potential of Ski Week to contribute to the business:

My feeling for this is a group that comes in for the festival doesn't have high budgets, and these tours will always cost more than 10,000 ISK. That's just over the budget of this type of tourists. (…) What we see as a potential for the Easter weekend is connected to Ski Week. We are offering two skiing tours and they are sold out, so that's a hit. So the target group we are looking at for the Easter is not the group that comes here for Aldrei, but the group that comes here for Ski Week – mostly older couples, people with money. – ET2

Possible areas for collaboration In order to open for more collaboration between the festival and tour operators, interviewees mentioned such suggestions as guided walks and day tours in relation to AFS. As such, one participant mentioned the idea of extending an existing tour option – a boat tour to the Vigur island – by using the final destination as a potential site to host an off-venue music event:

This off-venue [idea] is just adding something to the tools that we have, like, to visit Vigur [island] for a concert – really, just a Vigur tour with a concert, so that we are putting the music flair to it. – ET2

When talking about guided tours, the interviewee noted the possibility of inviting local musicians for guiding as to underline the connection to the area while also attracting festival visitors to participate in this kind of tours:

We have been talking about offering guided walks around the town. We would need really special guides to attract this group [festival visitors]; they would have to be music specialists. (…) To get some of the famous musicians from the area to come and maybe offer a guided tour – then it's maybe more about them than the town, but still it's music related. – ET2

Another tour guide expressed interest in arranging a program for small groups of tourists who are less interested in music. In this case, the main target group was considered to be foreign tourists who stay in Ísafjörður for the first time:

I see that it's possible to do some guiding for some small groups of people, like, kind of chaperoning them around. Let's say some foreign tourists, because most Icelanders, they will save themselves, mostly. Just imagine some people who are just first time in Iceland, and they don't know where to go. And then you will have somebody who's not terribly crazy about music, just being cool, and showing them the ways around and being able to participate and not being scared to get lost. – ET3

A tour agency manager also mentioned the option of arranging a travel package including flight tickets and accommodation, similar to the one that Iceland Airwaves festival in Reykjavik already provides. At the same time, concerns of the interviewee were related to a small size of the company that would make it problematic to implement such packages, also considering that AFS is an admission-free festival with a near-zero profit:

I'm always looking at it from our perspective, which is a travel agency one, and that's when you compare things that other people have. When you have a big image like this, it's kind of difficult to offer something that's for free and getting good prices from the hotel and air companies. It's a bit complicated, but it could be done. But then it has to be a part of something bigger. (…) We're a very small company, and during the winter, we have minimum amount of people. To start with a product like that, I would probably rather just connect to Iceland Tour [a travel agency owned by Iceland Air group], because they are big enough. You need a strong travel agency like that to start with a new product, because otherwise it would eat up all your marketing efforts. – ET2

6.1.1.4 Museums and cultural institutions

Most museums in Ísafjörður and surroundings are open on a seasonal basis and start their operations in summer, hence, the overall impact of AFS on these enterprises could be considered rather limited. However, research revealed a significant difference in perceptions between private and municipal stakeholders.

As such, during a brief phone interview, an owner of a private museum in Flateyri mentioned restricted impact of AFS on his service, even though the business was open during Easter prior to the outbreak of COVID-19 pandemic. Amongst possible reasons, he named spatial factor and weather conditions that might have prevented potential visitors to travel outside of Ísafjörður. Owners of another private museum mentioned one-time collaboration with AFS in form of a festival merchandise shop arranged in the museum. However, even though the main exhibition was open for visitors, owners perceived the overall effect from such initiative as low, stating that the particular impact of AFS on their business could not be measured due to main service operating solely during summer.

By contrast, attitude of the director of a municipal museum towards the festival deemed to be more positive despite its predominantly seasonal activity. Talking about how situation has changed since the emergence of the festival, interviewee referred to her previous work experience at Ísafjörður culture house and mentioned higher probability to get funding due to the increased number of people that arrive to the town for the festival:

Since Aldrei started or became that big, we have also had this possibility to be open, getting guests into our culture house that had always been closed, except for Saturday. And that means a lot to us because the more people we get into the house, the more funding or chances to get some we get, and also to have some interesting artists, to have exhibitions and so on. – EC1

Additionally, she also mentioned the potential of AFS to extend the opening period of the museum while contributing to increased revenue:

During the Easter, the museum is usually closed. But I would like to - when things come to normal, and also because of AFS - I would like to have the museum open at Easter time. When you have thousands of people in town, you have to have something for them to do and that creates possibilities for the museum, because they [visitors] have to pay an admission fee. It means that I can perhaps get 50 people to come during Easter time, and that means a lot for the museum. – EC1

Possible areas for collaboration

According to analyzed interviews, the most common suggestions on collaboration between AFS and museums included organization of exhibitions related to the festival history and providing space for events. For instance, the director of a municipal museum mentioned an idea of using the museum space for hosting concerts during the festival given previous experience of arranging similar events:

Since I started here at the museum, I've been thinking about asking if we could have some cooperation that way that we can have small concerts in the museum. We tried it once together with Mugison [musician, one of the festival founders] and some other people and it was success. I've been thinking about checking on this, because they [AFS] often have small concerts related to the festival, where musicians are playing around. I've been thinking about offering the museum for that kind of small concerts. – EC1

Proximity to museum facilities was pointed out as one of the key factors for arranging suggested concerts, including the opportunity for outdoor events and a dining service:

I'm waiting for getting a new building. And there, we will have more facilities and more space to have something more going on, for example, cafe that could be open at the same time as the concert. As long as the concert will be close to me, it's the option. – EC1

She also referred to the previous experience of working at Ísafjörður culture house where exhibitions about the festival were held on several occasions:

That was also at the culture house when I was there, we had open always at least two days during Easter time. We have often had exhibitions there, and we had at least once - no, twice - exhibitions about Aldrei. I wanted people to have a chance to come and see it, so we [the culture house] had open two days, and I'm trying to do that with the museum also. - EC1

Conversely, representatives of private museums mentioned lack of motivation to collaborate, especially given the situation with COVID-19 that restricted business operations during the interviewing period. Amongst other reasons, interviewees associated with private museums talked about lack of spare time during Easter, as museum ventures appeared to be a side business for the most part of participants.

6.1.2 The role of AFS for destination development 6.1.2.1 Extended seasonality

Based on data from interviews, it was found that the festival generally contributes to extension of the tourist season in Ísafjörður. Several respondents mentioned that having this festival has helped to attract more visitors to the town during wintertime:

8-10 years ago, you wouldn’t see people travel in the winter here. It was just for summer vacations, but for the last couple of years it [season] has expanded. We have foreign people coming in the winter, so with Aldrei it expanded from Easter. – R2

However, the long-term impact of AFS remains to be limited given the one-time nature of the event. Being held once per year during a short period of time, the festival is concentrated around Easter week, creating an extensive load on the existing infrastructure of the town:

How much do you think you can actually expect from a place that has been almost dormant for months, and then it's just like Easter and everything is happening? And you just think that people can deliver to a level that is normal for a big city, reflect constant flow of people coming through? I mean, it's just such unfair expectations. - M3

In support of this, many participants also mentioned an ongoing issue with the lack of accommodation that becomes especially noticeable during Easter week. As one of the possible solutions, one of the interviewees talked about setting the limit on the carrying capacity of the town by regulating the number of festival visitors:

If you have a roof on it [festival], like, more or less 2000 [people], and it's also “if we can't go this year, we can go next year”, maybe it’s more exciting. If it's overcrowded, you are just like one of the others. I think it's always good to have some kind of lock away, so that maybe you can control accommodation somehow. And I think if it's gonna be, like, ten thousands of people, then the music festival isn't the same, as it sort of stands for the local feeling and everybody is having fun. I think you don't get that connection if its growth is too big. - EH1

Other interviewees pointed out the possibility to arrange additional events under the same umbrella to increase the impact of the festival on tourism development in other periods of the year and spread out the load on infrastructure more evenly. For instance, one respondent from a tour agency talked about the potential of organizing small events related to AFS during summertime:

I would like to see small events during the summer in connection with Aldrei, so to kind of make it a bit bigger, because it's so difficult to get a brand to the status where they have Aldrei at the moment. So it would be like ‘mini-Aldreis’ happening around the Westfjords during the summer, 46

just free pop-ups that the marketing office [Visit Westfjords] could support financially. That will add to the attraction for other companies, and maybe in connection with it, we could offer some services. – ET2

At the same time, some participants expressed concerns towards expansion of the festival, following the specific association of the festival brand with Easter:

I think they could have another one [event]: it's Aldrei at Easter, and then you can have another one in autumn, perhaps with a bit different music or an outside concept. I think that would be a good idea, but that would not be Aldrei. (…) Aldrei is unique and Aldrei is so much related to Easter time that fans of Aldrei, they come for that thing in Easter. So if they had something in the autumn, it would have to be a little bit different, with another brand. – EC1

On the other hand, as found from an interview with representative from the festival committee, the idea of growth is extrinsic to the nature of AFS. Concerning its voluntary basis and lack of financial objectives, the main goal is to keep the festival maximally similar to its initial form with focus on providing leisure experience:

Someone said, “Oh, why don't you do it in summertime? It will be a great festival”, but we're doing it for us. We're doing it to have fun and as soon as the festival goes over 2000-3000 people, the organizers aren't there to just chill out and have fun - then it's like ‘a man's business’. – R1*

6.1.2.2 Enhanced destination image

In terms of tourism development, festival plays an important role in shaping the overall destination image of Ísafjörður. Several respondents talked about the impact of AFS on external image of the town which is imposed by positive word of mouth (WOM):

Although it [AFS] doesn't really come straight into the books of the region, it causes growth, because we are selling more. People coming to stay and people getting to Ísafjörður - this is advertisement. Even if they don't come, they hear about Ísafjörður just when people are talking about Aldrei, and then they are like “Oh, yeah, I have to go to that cool rock town”. – R3*

In turn, the brand of AFS has also affected the development of community identity for local residents contributing to change in perceptions and attitudes about the town (see subchapter 6.1.3):

I would say that AFS has an impact on the aura of Ísafjörður. It is a brand, and it is a brand that people relate to as Ísafjörður. And I think it has changed the way that people look at Ísafjörður as more of a fun hip place apart from some fishing industry quota. And since other people started looking at Ísafjörður with a different mindset, I think that it has also changed the way that local people perceive [the town] themselves. – M3 47

Being part of “Easter in the Westfjords”-program, festival is tightly associated with Easter celebration which links AFS brand not only with town but the region in general. Expressing with a phrase “Aldrei owns Easter”, one participant mentioned:

I don’t really know Ísafjörður without Aldrei during Easter. Easter is a kind of a weekend when Ísafjörður people don’t leave. This is like you don’t go out of town during Easter. People want to be here, because everyone is coming here – why leave? – C1*

On the other hand, this connection sets limits for the usage of the AFS brand in promotion and marketing of Ísafjörður outside of Easter time:

From my view, as a person living here, Aldrei is just about Easter. It helps people to get to know about Ísafjörður, and everyone knows that Aldrei is here. However, it is just around this time, the rest of the year you don’t hear anything about it. – R2

In terms of festival branding, many participants mentioned the non-profit nature of AFS which could minimize the potential impact of the festival on destination development. However, some of the interviewees said that the image of AFS being a grassroots event could also attract more visitors to the area and be one of the key factors that ensured the long-term success of such venture:

I don't think that this sort of feeling, to have it not commercialized, has to limit that [AFS] as a tourist attraction. On the contrary, I think it might even be more appealing. Because it is like that, it is not the festival that you have to pay 15,000 Icelandic kronor to enter, but it's that you can come to Ísafjörður and just check out some of the musicians that are playing, and then you can leave and do something else with your friends or whatever. (…) I think it might also be just because essentially, it's a group of friends that organized this and they probably just don't want to get over their heads. It's more about just coming together, meeting musicians and having fun than about “how can we get tourists here?” – C1*

In that sense, such core values of the festival as reluctance to commercialization could be seen as another important aspect that contributed to shaping its image as a local event with high social agenda. As one of the interviewed entrepreneurs stated, tight association of the festival with local community could in turn help to increase attractiveness of the region for business-related activities:

If I and some restaurant owners would be in charge of Aldrei, it would have money smell to it. People would say they're only doing it for the money, so it wouldn't even be more fancy and prestige than it is. Because what do you think about when you think about restaurateurs? – Money. And what do you think when you think about a guy with a guitar in a hand-knitted wool 48

sweater? – Not money. He is an artist. Am I an artist? – No. So I don't think it would be a good idea to put those including myself in the front line of getting more business to the Westfjords. – ED2

6.1.2.3 Attraction of new categories of visitors

With Ski Week previously being the main source of attraction to Ísafjörður during Easter, AFS has specifically affected the emergence of new categories of tourists in the town. As such, most of the interviewees talked about groups of young people coming from Reykjavik without any stated connection to the Westfjords – something that has become possible due to shifts in perceptions about Westfjords as being a hardly accessible remote area with lack of infrastructure and poor weather conditions. As one of the respondents said, sharing the personal experience of moving back to Ísafjörður after staying in Reykjavik for several years:

When I left, it wasn't really cool to be in Ísafjörður, but now actually people from Reykjavik think Ísafjörður is really cool. And they think it's really cool to come here and then they can wear wool sweater and be cool. I say that because I would never go to Aldrei and wear this Icelandic lopapeysa [wool sweater], but they do it because it's cool to come from Reykjavik and wear that. – R3*

Some interviewees also considered AFS to have a larger impact on destination attractiveness of Ísafjörður than Ski Week, following the growing interest from youngsters to visit the festival and certain tiredness from Ski Week:

I think now AFS is a magnet and Ski Week is just around, and I think it's a completely different target group. Old people that used to live here or are from here, they talk about Ski Week and they know Ski Week. They come here to take part from Wednesday onwards, whereas younger people from Reykjavik, they just know AFS. They're just coming to take part in AFS. Ski Week is just an addition. – R1*

At the same time, as AFS and Ski Week attract different target groups, their common impact is seen to be beneficial for enhancing the image of Ísafjörður, consequently affecting tourism development in the area. In this way, both events complement each other, especially concerning the lack of snow that affected possibility to arrange Ski Week during recent years:

The problem was that Ísafjörður had a lot of snow before and we always had this Ski Week over the Easter, so people were coming here to ski. But it has been less snow last years and decades, so now we are getting new [kind of] tourism over the Easter. People are coming skiing if there is snow, but they are also coming and planning to go to Aldrei and listen to music and do other things. – R1* 49

6.1.3 The role of AFS for local community 6.1.3.1 Merging of community

According to interviews, festival enables to engage local community in its organization by acting as a community merger. As such, several respondents mentioned the impact of AFS as stimulating for collective agency and uniting people of Ísafjörður in face of the festival. Talking about the main target group of AFS, one of the festival representatives mentioned the focus on local community which enabled festival to gain further support from residents of Ísafjörður:

At the base, it's always community, because it's good for the community that people come up here. It's good for the community that people decide to spend Easter here rather than somewhere else. (…) I think the community up here is happy with the festival and they enjoy it and they wanna help. There are always people offering [help] and as soon as you just make sure to reach out, then it works somehow. – R1*

In support of this statement, volunteering comprises one of the main driving forces behind the festival. As such, several respondents mentioned their involvement in AFS as volunteers, with some of them stating regular participation during several years. As for incentives, one of the interviewees mentioned personal motives in form of family reunification:

We wanted to give something back, because this festival, it brings all my kids back home over the Easter. So we wanted to give something back and to help continue that [festival], so that our kids continue to come back every Easter. – EM1*

AFS has also been known as an active supporter of local sports clubs which helped them to raise funds for future trips and competitions in exchange for voluntary work during the festival. However, one participant pointed out the insufficient amount of funding that together with internal problems within the club contributed to breaking collaboration between the club and AFS. At the same time, interviewee talked about the sense of community that this collaboration had brought:

One of the reasons why we [sports club] stopped doing it – it wasn't a lot of money for the club in it. I mean I shouldn't complain, because you can't pick up that kind of money from the street, but it wasn't huge. It wasn't a big part, so we could afford letting it [AFS] go when we had problems in having people do the work. So it wasn't a catastrophe losing that fundraiser, but it [AFS] was a fundraiser for many years and we were very happy with it. And it was also a fun fundraiser because everyone came together and everyone in the club was involved. It was a nice fundraising in that sense, because people actually came together and did something together. – C1*

The altruistic atmosphere that surrounds the festival was also found to be characteristic for the community of Ísafjörður in general, which was expressed by further engagement of local residents and organizations in form of offering their help for AFS. For instance, a festival representative mentioned support from local bank:

The bank used to call me and say, like, “Hey, did you forget we´re…” – ‘cause they close on Wednesday for Easter holiday, they used to call me at, like, 3:45 and say “Hey, we close in 15 minutes. Did you forget to come and get change for your shop?” Yes, I forget that, so I feel like everyone in town is on it to make sure we [festival committee] do a good job. – R1*

Another interviewee who is engaged in festival planning mentioned the spontaneous nature of interaction between the festival committee and local community underlining willingness of locals to help with the organization process:

Brilliant story from Kristjan [previous festival director] is when he had a huge list [of things to do] and one of them was related to dry cleaning. Because in dry cleaning, they knew that they had always cleaned the duvet covers that locals had slept with. And he [Kristjan] was in Bonus [local supermarket] and he saw the guy who does dry cleaning and he was like, “Oh yeah, hi”, and the guy was just like, “Oh yeah, just bring this stuff to me on Monday”. He [the guy] knew what he was going to do and he was prepared to do it, and Kristjan didn't even have to ask him to do it. – M2*

6.1.3.2 Enhancement of community pride

Furthermore, it was found that the process of community engagement that has been stimulated by the emergence of AFS has helped to enhance the community pride of Ísafjörður. This was especially noticeable in regard to local youth, since the festival gave rise to change in attitudes given the attraction of younger people from Reykjavik to Ísafjörður:

Young people who normally like sitting in Reykjavik and think it's the best place in the world, they go here, they follow their favorite bands - you can see how the streets are changing. (…) They are dressed slightly different, maybe they speak slightly different, and they all look lost because they can't find a coffeehouse, and this is an absolutely perfect development for local youth. Because local young people, when they see the whole thing happening – “Jesus Christ, they all come to see my small town! All these cool people from Reykjavik! – It is not so bad, huh?” It is totally good for self-respect of young people here. – ET3

In this aspect, belonging of the festival founders – a couple of musicians, father and son, known as Muggi and Mugison – to the local community additionally contributed to shaping

51 community pride, while also enhancing the image of Ísafjörður for visitors from other parts of Iceland:

The connection with AFS is also our chief of the harbour, the father of Mugison [Muggi]. He and his son, they found it [AFS], so all people know them both. That's important for us that people that did it, they are always here. (…) I also think, people in whole Iceland were reminded more about us [Westfjords] because of Mugison and AFS. He [Mugison] tried to move to the south with his family a lot of years ago, but that didn't happen. He was very famous by that time in Reykjavik and he had been always in television. He tried to move, but it was not his place, so they moved back home again. – ET1

At the same time, following the consistent growth of the festival during the recent years, some of the interviewees expressed concerns towards the increasing attraction of outside visitors that could eventually undermine the role of AFS for local community, together with certain tiredness associated with the festival:

There is an opinion from a local perspective if we should just leave it [AFS] as it is and try to go back to locals. Maybe it [AFS] is getting too big, and you can hear people talking, if it should be just ‘ours’. (…) First when it [festival] started, it was just locals. But I think people that are coming in outgrow, they're getting more than locals, so that locals feel a little bit like, “I can just stay [at home]”. – R2

However, even though the festival is still focused around Easter, the main effect of AFS on community could be expressed in showcasing opportunities that exist in the peripheral destination for local residents:

What happened to Aldrei was meant to be just fun around Easter, and now people who are performing, they have connection to festivals abroad as well as people from abroad come here to perform on this small, tiny, local festival at the end of the world. It's connection that is building up (…) And local people open their eyes on this. They just say “Yes, why not? I can make coffee, I can make a coffee house with a coffee or stuff. Why not? I can also sell t-shirts, I can also open my theater events at the same time, or maybe on the next day after the festival so people can stay longer.” That's what's happening here. – ET3

6.2. Discussion

6.2.1 AFS and social capital

In Appendix 4, social capital of Ísafjörður was defined from organizational perspective as a set of local groups and organizations found within destination during the research process. For the context of my thesis, I focused on organizations and businesses that were relevant for the studied topic, such as tourism-related SMEs, public institutions and local groups involved in the organization of the festival by means of sponsorship, partnership, or volunteering.

Following the typology of social capital presented by Woolcock and Narayan (2000), it was found that AFS generally contributes to merging of social capital on community and network levels. However, considering that many stakeholders were found to exert a variety of roles within the community, the actual network of actors was proven to be more comprehensive in terms of functions which these actors execute. For instance, as found from the research, roles might include combining engagement in the festival, work for region or municipality and in some cases even ownership of business. Consequently, it contributes to the formation of “everyone is in everything”-attitude (EC1), where stakeholders with higher level of community engagement act as community entrepreneurs driven by commitment to bring benefits for community (Borch et al., 2008). At the same time, the broader potential of AFS to facilitate change on institutional level is regarded as limited given rather informal nature of the festival. Even though public collaboration includes funding from the region and ongoing agreement with municipality, the festival lacks involvement in destination plans and strategies, thus suggesting low level of festival commodification in absence of economic profitability, as was earlier noted by Jepson and Clarke (2013).

However, the concept of social capital is shaped by the notion of social ties not only between organizations but also within community in general. Based on data analysis, the context of social capital has proven to be vital for development of entrepreneurial network in Ísafjörður and surroundings. As discovered from interviews, a set of social ties within the destination has affected the entrepreneurial climate in town, since most enterprises have been either inherited from previous generations or newly built on the basis of family ties. In some cases, this tendency has extended to monopolized forms of ownership when one family could possess several hospitality enterprises in town (EH2).

At the same time, findings suggest higher level of intolerance towards outside entrepreneurs by contrast to previously mentioned examples from academic literature (Gill, 2018; Nel et al., 2019). Most interviewed entrepreneurs have some form of local background or at least

53 one person of Icelandic origin in charge of business. As one of the reasons, closed nature of peripheral community accompanied by initial skepticism towards migrant entrepreneurs are mentioned by some interviewees of foreign origin, which makes it rather problematic to establish business in this area in the absence of previously developed social ties (ET1, ED3).

Next, findings suggest that lack of communication and reluctance to collaborate between different enterprises might have hindered the process of sustainable destination development and cause lack of common vision within business community. As such, business climate in Ísafjörður is characterized by low level of competitiveness and “everyone is busy in their own corner”- attitude (M3), where any possibility of collaboration is questioned due to the limited size of the network and focus of entrepreneurs on maintaining their own services. The only existing formal network in the studied area was found to be an association of tourism entrepreneurs around Önundarfjörður, where the main incentive for collaboration is to bring change to small villages surrounding the fjord and increase overall destination attractiveness (EH3). In general, research shows that SMEs in Ísafjörður and surroundings find it difficult to understand how they could benefit from participating in collaborative projects both in relation to AFS and between each other. Following the limited range of enterprises and difference in target groups, the overall potential for broader collaboration in business can be deemed limited due to inadequate size of available social capital and general reluctance to collaborate.

In turn, the role of the festival is inseparable from socioeconomic perspective on sustainable development. While AFS mainly contributes to merging local community by means of volunteering, it also helps to sustain local businesses, thus confirming findings from previous research on the role of cultural events in rural areas (Martín et al., 2020). Even though the festival might not bring a radical change in socioeconomic dynamics and mitigate such issues as depopulation and limited supply of available services, it enhances positive image of Ísafjörður and contributes to change in attitudes of local residents while strengthening existing social capital. Suggested findings further correspond to the notion made by Reid (2011) in relation to social change, whereas broader community engagement has contributed to formation of community identity of Ísafjörður, even though incentives for further relocation brought by the festival were found to be insignificant.

From entrepreneurial perspective, dining facilities are found to gain most profit from the festival. At the same time, smaller events which are organised in and around Ísafjörður during the festival period are mainly arranged in a private manner and lack direct connection to the festival. On the other hand, findings have shown a slight change in attitudes towards the festival after introduction of restrictions on public gatherings in Iceland several days prior to the festival. Most 54 entrepreneurs contacted after this date expressed disappointment due to change in plans, stating the loss of income and absence of festival visitors in their facilities. This situation has also shown the overall importance of the festival for entrepreneurial network not only in Ísafjörður, but also for the nearby area, especially villages of Flateyri and Bolungarvik.

At the same time, usage of enhanced sampling for the broader geographical area could be criticized due to lack of specific importance to the context of the stated research topic. In turn, considering the distance from the festival area and lack of transportation options, the spatial factor limited the potential of AFS to affect businesses in nearby settlements. On the other hand, findings reveal positive impact of the festival on dining facilities located outside of Ísafjörður, even despite certain spatial remoteness between studied towns. Even though economic impact could not be measured due to the absence of statistical data, this research approach helped to define the role of the festival in the wider context of municipality.

6.2.2 AFS and social embeddedness

Similarly to Smith and Stevens’ (2010) description of social bricoleur, the network of AFS is represented by a range of social ties within the local community, which are predominantly based on previously established interactions with a long history of relationships. While AFS activity is aimed to include a wide range of stakeholders in Ísafjörður (see Appendix 5 for network of service providers), the focus lies in maintaining existing social network rather than extending it. The same pattern can be seen in the structure of the festival committee that has remained mostly unchanged since the emergence of AFS (R1*).

At the same time, AFS is gradually working on extending their external collaboration, for instance, by introducing new partner each festival year. As such, new for this year was collaboration with a local brewery in Ísafjörður, which involved selling beer as one of the items of festival merchandise. By being distributed under AFS brand, this initiative created more visibility for a relatively new stakeholder in face of the brewery (Figure 6). This co-branding strategy was further suggested by several interviewees for possible collaboration in form of AFS-related tours, exhibitions, or guided walks, thus contributing to findings of Hjalager and Kwiatkowski (2018) on thematic cooperation as one of the strategies for sustainable destination development.

Figure 6. Merchandise beer for AFS in collaboration with local brewery (Aldrei fór ég suður, 2021)

Another example of social embeddedness of the festival into local community was found in form of symbolic rename of Suðurgata in Ísafjörður to Aldrei fór ég suðurgata (Figure 7) and naming of a small calf of orca whales founded in the harbor of Ísafjörður during the traditional festival period as Aldrei (University Centre of the Westfjords, 2021). The broad usage of the festival name in a local context has further underlined strong association between the town and the festival, emphasizing the mutual nature of relationships between AFS and local community.

Despite its general reluctance to commercialization, AFS contributed to mobilization of resources within community by including a range of local stakeholders into festival maintenance and organization. Consequently, it helped AFS to gain organizational legitimacy on the broader national level and create a strong brand inseparable from the context of Ísafjörður, thus confirming benefits of joint dependence between service providers mentioned by Vestrum and Rasmussen (2013).

From observations during the fieldwork, importance of the festival for locals was further proven by means of local support, as several people were seen wearing the festival merchandise in form of sweatshirts and hats with AFS logotype, both in Ísafjörður and nearby villages. In this way, commitment towards the festival, which has been expressed by community even despite cancellation of the event, also revealed deeper connection between social capital and successful embeddedness of the festival into local community at peripheral destination.

Figure 7. Suðurgata in Ísafjörður renamed to Aldrei fór ég suðurgata

At the same time, the explicit focus on the local can undermine the potential of the festival to contribute to sustainable development. Lack of formal agreements between collaborating parties and high reliance of the festival on their own pool of resources makes it possible to suggest a higher risk of overembeddedness, which might in turn cause such issues as nepotism, interpersonal conflicts, and low level of tolerance towards external actors (Czernek-Marszałek, 2020b). These results further correspond with Stevenson (2016)’s findings about uneven enhancement of social capital in event organization as undermining for community inclusiveness while restricting potential for sustainable development from social perspective.

Furthermore, this research suggests that overembeddedness could comprise an intrinsic feature of peripheral communities in regard to the spatially imposed close-knit nature of social ties. Spatial remoteness of Ísafjörður thus contributes to formation of DIY (Do-It-Yourself)- mentality which acts as a driver for local community to create and produce their own products and services. In this way, even though the festival seeks to retain its own independence, AFS is found to be inherently embedded in the structure of local community by means of social ties which exist between different stakeholders involved in festival organization and maintenance.

6.2.3 AFS and sustainable destination development As found from interviews, contribution of AFS to tourism development in the area is mainly considered in regard to extension of seasonality, enhancement of destination image and attraction of new types of visitors. Besides co-branding strategies, local entrepreneurs mention such opportunities as usage of local products associated with cultural heritage of the area, providing packages for extended stay and transportation options which are relevant for accommodation facilities from the nearby villages.

At the same time, it is noted that most of suggestions lack sufficient demand from visitor side and in this way are difficult to implement in practice given small scalability of businesses in the area. However, it is known that the neighbouring town of Bolungarvik has previously launched initiative on usage of municipal buses for transportation to Ísafjörður during festival period (R1*; Ólafsdóttir, 2016), which could be seen as an opportunity for municipality of Ísafjarðarbær to provide its own public transport in association with the festival.

Lack of accommodation to host an increased number of visitors is another issue mentioned in discussions. As such, temporary housing options are to prefer due to temporally limited nature of the festival. For instance, summer houses that usually stay empty in town during wintertime could be used for this purpose. Ships staying in harbor during the festival period provide another opportunity to accommodate guests while mitigating an excessive load on town infrastructure. Encouragement of disruptive business models such as couch surfing and sharing a flat with locals via AirBnB could also contribute to trust building between tourists and local residents.

Other suggestions include further expansion of AFS to other seasons in order to distribute the visitors’ load more evenly and attract them throughout the year. At the same time, as mentioned in interviews, further expansion of the festival in its current form is problematic to implement. Given the voluntary nature of the festival, it would be difficult for the festival committee to arrange an event of such scale several times per year (R1*). Even though this opportunity could increase overall destination attractiveness of Ísafjörður and benefit more seasonal businesses, it could also be threatening for AFS brand which is historically connected to the Easter celebration.

In turn, grassroots’ nature of the event might conflict with business interests in the area, which further supports findings from Hjalager and Kwiatkowski (2018). Given the festival core values with its reluctance to commercialization, AFS profitability is restricted by revenue gained mainly from merchandise sales, which makes this venture vulnerable in face of external shocks and dependent on funding and support from local community. As some of the respondents mentioned certain tiredness from the festival, findings suggest that novel formats of the festival

58 including more even usage of social capital in event organization could be applied in future planning, especially in case of force majeure events such as COVID-19 outbreak.

In these terms, the main potential of the festival could be seen in regards to social and economic sustainability. However, even though the aspect of environmental sustainability was neglected in this study, the festival is known to include such measures as environmentally friendly packaging, collection and recycling of garbage from the festival area, and usage of rented and shared materials and equipment. From interviews with entrepreneurs, environmental aspect of collaboration was not considered to be the key priority, much likely due to focus on mitigating current economic effects of COVID-19 on their businesses. At the same time, suggestions to introduce shared transportation options and accommodation packages could be considered beneficial from environmental perspective given opportunity for visitors to stay longer and minimize emissions by contrast to usage of individual transport modes.

7. Conclusion

In this thesis, I have used the case of a music festival Aldrei fór ég suður in Ísafjörður, Iceland, in order to investigate relationship between the festival and local tourism entrepreneurial network and define opportunities that the festival might provide for sustainable development of the area. Suggested findings confirm the combined impact of the festival on local businesses, tourism development and community in general. At the same time, the impact on tourism-related businesses has proven to be varied depending on the category of business, its location, seasonality and target groups. As such, the highest impact was found in relation to dining sector in Ísafjörður and nearby areas, which operate on a year-round basis.

In terms of destination development, research suggests that the festival mainly contributes to expansion of seasonality, enhancement of destination image and attraction of new target groups. While attracting visitors outside of the main tourist season, AFS has contributed to increased destination attractiveness of Ísafjörður while also complementing the previously held event Ski Week. However, sustainability of this development can be questioned due to extensive load on infrastructure of this peripheral destination, which is particularly seen in regard to lack of accommodation available during the festival period.

Changes induced by AFS could be seen both from entrepreneurial and destination development perspective, however, its main role is related to community engagement and enhancement of local pride. Research has shown that the festival is seen to be a driver of social change in contributing to formation of community identity, for instance, by causing shifts in attitudes of local youth while attracting a new category of visitors – younger people from the capital area of Iceland. Given the close-knit nature of social ties presented at peripheral destination, embeddedness of the festival into local community has contributed to its long-term success, even though the festival has a non-profit structure and lacks involvement in destination plans and strategies on institutional level.

Findings further suggest certain interest of entrepreneurs to collaborate with the festival, however, the potential for broader collaboration could be deemed rather restricted due to temporally limited nature of the festival and difference in target groups. Suggestions for further collaboration include development of thematic products and services, transportation options, packaging for extended stay and usage of facilities for catering and concerts. At the same time, further expansion of the festival is restricted given its voluntary nature, reluctance to commercialization and association of the brand with Easter. Consequently, the risk of overembeddedness of the festival is considered to be rather high given its focus on maintaining

60 the existing social network and general lack of willingness to collaborate between different businesses which is further explained by sociocultural aspect of business relationships in remote areas of Iceland.

7.1. Implications for further research

Given time constraints in relation to thesis writing, the stated research was based on broadly capturing the impacts of AFS without focusing on any particular period. However, as recurring events comprise a dynamic process which evolves in time, longitudinal perspective is to prefer in future studies in order to explore the changes in entrepreneurial network as well as perceptions and attitudes of stakeholders throughout the years.

Considering that the studied festival puts additional pressure on tourism infrastructure of the destination during the short period of time, directions for further research suggest investigating the impact of festivals on carrying capacity of peripheral destinations. In this way, potential results could contribute to better understanding of how festivals in remote areas could increase their role in sustainable development of such destinations.

Another suggestion relates to focusing on the impacts of COVID-19 for entrepreneurial activity in peripheral destinations. In the process of data collection, several interviewees stated that they have experienced noticeable changes in their business during COVID-19 pandemic, for instance, in terms of shifting target groups, which underlines the importance of such research for destination development in post-pandemic times.

Furthermore, lack of monitoring data for many SMEs at the studied destination has made it problematic to statistically measure economic impact of the festival. Hence, quantitative research is recommended for further studies to explore the role of the festival for local businesses more comprehensively.

Finally, applying cross-case design with multiple cases would be beneficial in order to increase the external validity and generalizability of results. In this way, it would be interesting to consider destinations with varied sociocultural context in order to define how it could affect the formation of entrepreneurial network and compare findings between destinations with similar spatial characteristics.

References

Aldrei fór ég suður. (2021, March 30). Allskonar spurningar! Hvar kaupi ég Aldrei bjór?

[Attached image] [Status update]. Facebook.

https://www.facebook.com/aldreiforegsudur/posts/4453330534695660?__tn__=-R

Aldrei fór ég suður. (n.d.). Sagan frá Mugison og Papamug [The story of Mugison and

Papamug]. https://www.aldrei.is/sagan

Armbrecht, J., Lundberg, E., Andersson, T. D., & Mykletun, R. J. (2020). 20 Years of Nordic

event and festival research: A review and future research agenda. Scandinavian Journal

of Hospitality and Tourism, 1–11. https://doi.org/10.1080/15022250.2020.1823245

Aull Davies, C. (2008). Reflexive Ethnography (2nd ed.). New York: Routledge

Bakas, F. E., Duxbury, N., Remoaldo, P. C., & Matos, O. (2019). The social utility of small-

scale art festivals with creative tourism in Portugal. International Journal of Event and

Festival Management, 10(3), 248–266. https://doi.org/10.1108/IJEFM-02-2019-0009

Barth, F. (1967). On the Study of Social Change. American Anthropologist, 69(6), 661–669.

http://www.jstor.org/stable/669670

Benediktsson, K., & Skaptadóttir, U.D. (2002). Coping Strategies and Regional Policies – Social

Capital in the Nordic Peripheries – Country report Iceland. Nordregio, 5.

http://norden.diva-portal.org/smash/get/diva2:700473/FULLTEXT01.pdf

Berbeka, J. (2018). The value of remote Arctic destinations for backcountry skiers. Scandinavian

Journal of Hospitality and Tourism, 18(4), 393–418.

https://doi.org/10.1080/15022250.2018.1522728

Bhandari, H., & Yasunobu, K. (2009). What Is Social Capital? A Comprehensive Review of the

Concept. Asian Journal of Social Science, 37(3). 480-510.

https://doi.org/10.1163/156853109X436847.

Blichfeldt, B. S., & Halkier, H. (2014). Mussels, Tourism and Community Development: A Case

Study of Place Branding Through Food Festivals in Rural North Jutland,

Denmark. European Planning Studies, 22(8), 1587-1603.

https://doi.org/10.1080/09654313.2013.784594

Bocken, N. M. P. (2015). Sustainable venture capital – catalyst for sustainable start-up success?

Journal of Cleaner Production, 108, 647–658.

https://doi.org/10.1016/j.jclepro.2015.05.079

Borch, O. J, Førde, A., Rønning, L., Vestrum, I. K., & Alsos, G. A. (2008). Resource

configuration and creative practices of community entrepreneurs. Journal of Enterprising

Communities: People and Places in the Global Economy, 2(2), 100–123.

https://doi.org/10.1108/17506200810879943

Bourdieu, P. (1986). The Forms of Capital. In J. G. Richardson (Ed.), Handbook of Theory and

Research for the Sociology of Education, 241-258. New York: Greenwood Press.

Bryman, A. (2012). Social research methods (4th ed.). New York: Oxford University Press

Butler, R. (1980). The Concept of A Tourist Area Cycle of Evolution: Implications for

Management of Resources. The Canadian Geographer / Le Géographe Canadien, 24, 5–

12. https://doi.org/10.1111/j.1541-0064.1980.tb00970.x

Byggðastofnun (2019, November 7). Byggðafesta og búferlaflutningar [Settlement and

migration]. https://issuu.com/byggdastofnun/docs/byggdafesta_34bls_2019_net

Carrigan, M., Lazell, J., Bosangit, C., & Magrizos, S. (2017). Burgers for tourists who give a

damn! Driving disruptive social change upstream and downstream in the tourist food

supply chain. Journal of Sustainable Tourism, 25(11), 1563–1582.

https://doi.org/10.1080/09669582.2017.1291652

Cruise Iceland. (n.d.). Statistics for 2017-2020. https://www.cruiseiceland.com/about-

us/statistics/

Curtis, J., Breen, B., O’Reilly, P., & O’Donoghue, C. (2017). The economic contribution of a

recreational fishery in a remote rural economy. Water Resources and Rural Development,

10, 14–21. https://doi.org/10.1016/j.wrr.2017.11.001

Czernek-Marszałek, K. (2020a). Social embeddedness and its benefits for cooperation in a

tourism destination. Journal of Destination Marketing & Management, 15(100401), 1-17.

https://doi.org/10.1016/j.jdmm.2019.100401

Czernek-Marszałek, K. (2020b). The overembeddedness impact on tourism cooperation. Annals

of Tourism Research, 81(102852), 1-12. https://doi.org/10.1016/j.annals.2019.102852

Daskalaki, M., Hjorth, D., & Mair, J. (2015). Are Entrepreneurship, Communities, and Social

Transformation Related? Journal of Management Inquiry, 24(4), 419–423.

https://doi.org/10.1177/1056492615579012

Dax, T., Zhang, D., & Chen, Y. (2019). Agritourism Initiatives in the Context of Continuous

Out-Migration: Comparative Perspectives for the Alps and Chinese Mountain Regions.

Sustainability, 11, 4418, 1-18. https://doi.org/10.3390/su11164418

Einarsen, K., & Mykletun, R. J. (2009). Exploring the Success of the Gladmatfestival (The

Stavanger Food Festival). Scandinavian Journal of Hospitality and Tourism, 9(2-3), 225-

248. https://doi.org/10.1080/15022250903031550

Eurostat (n.d.). Eurostat regional yearbook 2020. https://ec.europa.eu/eurostat/statistical-

atlas/gis/viewer/?config=RYB-

2020.json&mids=BKGCNT,C00M01,CNTOVL,CCNCIT&o=1,1,0.7,1&ch=INT,CITYC

OMMZONE¢er=65.38399,-3.02778,4&lcis=C00M01&

Gaddefors, J., Korsgaard, S., & Ingstrup, M. B. (2020). Regional development through

entrepreneurial exaptation: Epistemological displacement, affordances, and collective

agency in rural regions. Journal of Rural Studies, 74, 244–256.

https://doi.org/10.1016/j.jrurstud.2019.10.010

George, E., Mair, H. & Reid, D. (2009). Rural Tourism Development: Localism and Cultural

Change. Bristol, Blue Ridge Summit: Channel View Publications.

https://doi.org/10.21832/9781845411015

Gill, A. M. (2018). Challenges to the Resilience of Whistler’s Journey Towards Sustainability. In

D.K. Müller and M. Więckowski (Eds.), Tourism in Transitions, Geographies of Tourism

and Global Change, 21-37. https://doi.org/10.1007/978-3-319-64325-0_2

González‐Reverté, F., & Miralbell‐Izard, O. (2009). Managing music festivals for tourism

purposes in Catalonia (Spain). Tourism Review, 64(4), 53–65.

https://doi.org/10.1108/16605370911004575

Google. (n.d.). [Map of the studied area in the northern part of Westfjords region] [Screenshot].

https://www.google.se/maps/@65.9691304,-23.3742868,10z

Granovetter, M. (1973). The Strength of Weak Ties. American Journal of Sociology, 78(6),

1360-1380. https://doi.org/10.1086/225469

Granovetter, M. (1985). Economic Action and Social Structure: The Problem of Embeddedness.

American Journal of Sociology, 91(3), 481–510. https://doi.org/10.1086/228311

Granovetter, M. (2005). The impact of social structure on economic outcomes. Journal of

Economic Perspectives, 19(1), 33–50. https://doi.org/10.1257/0895330053147958

Guide to Iceland. (n.d.a). The Arctic Henge Travel Guide. https://guidetoiceland.is/travel-

iceland/drive/the-arctic-henge

Guide to Iceland. (n.d.b). Ísafjörður Travel Guide. https://guidetoiceland.is/travel-

iceland/drive/isafjordur

Hafstað, V. (2020, 27 October). New Tunnel and Ring Road 2 Open in West Fjords. Iceland

Monitor.

https://icelandmonitor.mbl.is/news/nature_and_travel/2020/10/27/new_tunnel_and_ring_

road_2_open_in_west_fjords/

Haisch, T. (2019). Working towards resilience: Collective agency in a tourism destination in the

Swiss Alps. In J. Saarinen & A.M. Gill (Eds.), Resilient Destinations and Tourism:

Governance Strategies in the Transition towards Sustainability in Tourism. UK & New

York: Routledge.

Haugh, H. (2007). Community-Led Social Venture Creation. Entrepreneurship Theory and

Practice, 31(2), 161–182. doi:10.1111/j.1540-6520.2007.00168.x

Hjalager, A.-M., & Kwiatkowski, G. (2018). Entrepreneurial implications, prospects and

dilemmas in rural festivals. Journal of Rural Studies, 63, 217–228.

https://doi.org/10.1016/j.jrurstud.2017.02.019

Hjorth, D., & Bjerke, B. (2006). Public entrepreneurship: moving from social/consumer to

public/citizen. In C. Steyaert & D. Hjorth (Eds.), Entrepreneurship as Social Change: A

Third Movements in Entrepreneurship. Edward Elgar Publishing.

Holloway, I., Brown, L., & Shipway, R. (2010). Meaning not measurement: Using ethnography

to bring a deeper understanding to the participant experience of festivals and events.

International Journal of Event and Festival Management, 1(1), 74–85.

https://doi.org/10.1108/17852951011029315

Huijbens, E. H. (2015). Cruise Tourism in Iceland and the North Atlantic: Gateways to the

Arctic and the Challenges to Port Readiness Programs. Tourism in Marine Environments,

10(3-4), 241-254. https://doi.org/info:doi/10.3727/154427315X14181438892928

Ianioglo, A., & Rissanen, M. (2020). Global trends and tourism development in peripheral areas.

Scandinavian Journal of Hospitality and Tourism, 20(5), 520–539.

https://doi.org/10.1080/15022250.2020.1848620

Ibanescu, B.-C., Eva, M., & Gheorghiu, A. (2020). Questioning the Role of Tourism as an

Engine for Resilience: The Role of Accessibility and Economic Performance.

Sustainability, 12, 5527, 1-13. https://doi.org/10.3390/su12145527

Iceland Magazine. (2014, April 14). Glorious days of rock 'n' roll and skiing in the Westfjords.

https://icelandmag.is/article/glorious-days-rock-n-roll-and-skiing-westfjords

Islandsbloggen. (2020, 16 March). Coronaviruset får Aldrei fór ég suður att flytta söderut

[Coronavirus makes Aldrei fór ég suður move south].

http://www.islandsbloggen.com/2020/03/coronaviruset-far-aldrei-for-eg-suur.html

Íslensku tónlistarverðlaunin. (n.d.). The Icelandic Music Awards. http://iston.is/english/

Jepson, A., & Clarke, A. (2013). Events and Community Development. In R. Finkel et al. (eds.),

Research Themes for Events. Centre for Agriculture and Bioscience International

Jóhannesson, G. T., Huijbens, E. H., & Sharpley, R. (2010). Icelandic tourism: Past directions -

future challenges. Tourism Geographies, 12(2), 278–301.

https://doi.org/10.1080/14616680903493670

Jæger, K. (2020). Event start-ups as catalysts for place, sport and tourism development: Moment

scapes and geographical considerations. Sport in Society, 23(1), 40–55.

https://doi.org/10.1080/17430437.2018.1555218

Kaltenborn, B. P., Linnell, J. D. C., Thomassen, J., & Lindhjem, H. (2017). Complacency or

resilience? Perceptions of environmental and social change in Lofoten and Vesterålen in

northern Norway. Ocean & Coastal Management, 138, 29–37.

https://doi.org/10.1016/j.ocecoaman.2017.01.010

Karabağ, S. F., Yavuz, M. C., & Berggren, C. (2011). The impact of festivals on city promotion:

A comparative study of Turkish and Swedish festivals. Tourism: An International

Interdisciplinary Journal, 59(4), 447-464. https://hrcak.srce.hr/75720

Kauppila, P. (2011). Cores and peripheries in a northern periphery: A case study in Finland.

Fennia, 189(1), 20–31. https://fennia.journal.fi/article/view/4066/4117

Kauppila, P., Saarinen, J., & Leinonen, R. (2009). Sustainable Tourism Planning and Regional

Development in Peripheries: A Nordic View. Scandinavian Journal of Hospitality and

Tourism, 9(4), 424–435. https://doi.org/10.1080/15022250903175274

Kickul, J., & Lyons, T. S. (2012). Understanding Social Entrepreneurship: The Relentless

Pursuit of Mission in an Ever Changing World. Routledge.

https://doi.org/10.4324/9780203801925

Kokorsch, M. (2017). The Tides they are a Changin’: Resources, Regulation, and Resilience in

an Icelandic Coastal Community. Journal of Rural and Community Development,

12(2/3), 59-73. https://journals.brandonu.ca/jrcd/article/view/1400/320

Kokorsch, M., & Benediktsson, K. (2018a). Prosper or perish? The development of Icelandic

fishing villages after the privatisation of fishing rights. Maritime Studies, 17(1), 69–83.

https://doi.org/10.1007/s40152-018-0089-5

Kokorsch, M., & Benediktsson, K. (2018b). Where have all the people gone? The limits of

resilience in coastal communities. Norsk Geografisk Tidsskrift - Norwegian Journal of

Geography, 72(2), 97-114. https://doi.org/10.1080/00291951.2018.1450289

Magnússon, G. (2013). Internal migration and population development in Iceland [Special

Edition: Economic and social aspects of Peripheral regions]. Fraser of Allander

Economic Commentary, 18-22.

https://strathprints.strath.ac.uk/67440/1/FEC_Special_Edition_2013_4_Internal_migratio

n_and_population_development_in_Iceland.pdf

Marcouiller, D. W., & Westeren, K. I. (2019). Cultural tourism and rural entrepreneurship: A

case study of a Scandinavian literary festival. Regional Science Policy & Practice, 11(3),

509–524. https://doi.org/10.1111/rsp3.12200

Markaðstofa Vestfjarða. (2020). Áfangastaðaáætlun Vestfjarða: Drög [Destination plan

Westfjords: Draft] [PDF].

https://www.vestfirdir.is/static/files/Ferdathjonusta/Afangastadaaaetlun/afangastadaaaetlu

n-vestfjarda-2020-drog.pdf

Martín, G.-U., Laurent, R., Afroditi, K., Sofía, S. A., Antonio, P., & Gotay, S. M. (2020).

Demographic Challenges in Rural Europe and Cases of Resilience Based on Cultural

Heritage Management. A Comparative Analysis in Mediterranean Countries Inner

Regions. European Countryside, 12(3), 408-431. https://doi.org/10.2478/euco-2020-0022

Matarrita-Cascante, D., & Suess, C. (2020). Natural amenities-driven migration and tourism

entrepreneurship: Within business social dynamics conducive to positive social change.

Tourism Management, 81, 104140. https://doi.org/10.1016/j.tourman.2020.104140

Müller, D. K. & Brouder, P. (2014). Dynamic Development or Destined to Decline? The Case of

Arctic Tourism Businesses and Local Labour Markets in Jokkmokk, Sweden. In A.

Viken & B. Granas (Eds.), Tourism Destination Development: Turns and Tactics. Surrey:

Ashgate

Nel, E., Connelly, S., & Stevenson, T. (2019). New Zealand’s small town transition: The

experience of demographic and economic change and place based responses. New

Zealand Geographer, 75(3), 163–176. https://doi.org/10.1111/nzg.12240

Nilsson, P. Å. (2008). Tourism in Cold Water Islands: A Matter of Contract? Experiences from

Destination Development in the Polar North. Island Studies Journal, 3(1), 97-112.

https://www.islandstudies.ca/sites/islandstudies.ca/files/ISJ-3-1-2008-Nilsson-

FINAL_0.pdf

Nordic Adventure Travel. (n.d.). Map of Westfjords [Online image]. https://nat.is/map-of-

westfjords-2/

Oklobžija, S. (2015). The role of events in tourism development. BizInfo (Blace) Journal of

Economics, Management and Informatics, 6(2), 83–97.

https://doi.org/10.5937/BIZINFO1502083O

Organisation for Economic Co-operation and Development (1994). Tourism Strategies and

Rural Development. https://www.oecd.org/cfe/tourism/2755218.pdf

Ólafsdóttir, H. (2016, 12 March). Aldrei fór ég suður: Áhrif á allt samfélagið [Aldrei fór ég

suður: Impact on the community]. RÚV. https://www.ruv.is/frett/aldrei-for-eg-sudur-

ahrif-a-allt-samfelagid

Pedlar, A. (1996). Community development: what does it mean for recreation and

leisure? Journal of Applied Recreation Research, 21, 5-23.

Port of Ísafjörður. (2010). Port of Ísafjörður.

https://www.isafjordur.is/static/files/UtgefidEfni/AtvinnuOgFerdamal/Baeklingar/port_of

_isafjordur_2010.pdf

Putnam, R. (2000). Bowling Alone: The Collapse and Revival of American Community. New

York: Simon and Schuster.

Reid, S. (2011). Event stakeholder management: Developing sustainable rural event practices.

International Journal of Event and Festival Management, 2(1), 20–36.

https://doi.org/10.1108/17582951111116597

Rinaldi, C. (2017). Food and Gastronomy for Sustainable Place Development: A

Multidisciplinary Analysis of Different Theoretical Approaches. Sustainability, 9(10),

1748. https://doi.org/10.3390/su9101748

Schumpeter, J., Becker, M. C., & Knudsen, T. (2002). New Translations: Theorie der

wirtschaftlichen Entwicklung. The American Journal of Economics and Sociology, 61(2),

405–437. http://www.jstor.org/stable/3487789

Smith, B.R., & Stevens, C.E. (2010). Different types of social entrepreneurship: The role of

geography and embeddedness on the measurement and scaling of social value.

Entrepreneurship & Regional Development, 22(6), 575-598.

https://doi.org/10.1080/08985626.2010.488405

Solvoll, S., Alsos, G. A., & Bulanova, O. (2015). Tourism Entrepreneurship – Review and

Future Directions. Scandinavian Journal of Hospitality and Tourism, 15(sup.1), 120-137.

https://doi.org/10.1080/15022250.2015.1065592

Statistics Iceland. (n.d.a). Population by municipalities, sex and age 1 January 1998-2021 -

Current municipalities.

https://px.hagstofa.is/pxen/pxweb/en/Ibuar/Ibuar__mannfjoldi__2_byggdir__sveitarfelog

/MAN02001.px/table/tableViewLayout1/?rxid=248ec2b0-3760-485c-81c6-

042362d6c7ad

Statistics Iceland. (n.d.b). Gistinætur og gestakomur á öllum tegundum skráðra gististaða 1998-

2021 [Overnight stays and arrivals at all types of registered accommodation 1998-2021].

[Online image].

http://px.hagstofa.is/pxis/pxweb/is/Atvinnuvegir/Atvinnuvegir__ferdathjonusta__Gisting

__3_allartegundirgististada/SAM01601.px/table/tableViewLayout1/?rxid=c8a6b750-

15f3-43ca-90ce-33b67ef7cd62

Stevenson, N. (2016). Local festivals, social capital and sustainable destination development:

Experiences in East London. Journal of Sustainable Tourism, 24(7), 990–1006.

https://doi.org/10.1080/09669582.2015.1128943

Stewart, E. J., Draper, D., & Johnston, M. E. (2005). A Review of Tourism Research in the Polar

Regions. Arctic, 58(4), 383-394. https://doi.org/10.14430/arctic452

Strobl, A., & Kronenberg, C. (2016). Entrepreneurial networks across the business life cycle:

The case of Alpine hospitality entrepreneurs. International Journal of Contemporary

Hospitality Management, 28(6), 1177–1203. https://doi.org/10.1108/IJCHM-03-2014-

0147

Tommasini, D. (2012). Tourisme de croisière et communautés éloignées au Groenland [Cruise

tourism and remote communities in Greenland]. Études Inuit Studies, 36(2), 125-145.

http://www.jstor.org/stable/42870822

University Centre of the Westfjords [@Haskolasetur]. (2021, April 4). Glad that these visitors

have now left the harbour. We are also happy to report that the youngest calf in the

group has been named “Aldrei”. [Tweet]. Twitter.

https://twitter.com/Haskolasetur/status/1378818182052524035

Uzzi, B. (1997). Social Structure and Competition in Interfirm Networks: The Paradox of

Embeddedness. Administrative Science Quarterly, 42(1), 35–67.

https://doi.org/10.2307/2393808

Uzzi, B. (1999). Embeddedness in the Making of Financial Capital: How Social Relations and

Networks Benefit Firms Seeking Financing. American Sociological Review, 64(4), 481–

505. https://doi.org/10.2307/2657252

Vestfjarðaleiðin. (n.d.). About Vestfjarðaleiðin. https://www.vestfjardaleidin.is/en/travel-

info/about-vestfjardaleidin

Vestfjarðastofa. (2019). Sóknaráætlun Vestfjarða 2020-2024 [Westfjords Strategy 2020-2024]

[PDF]. https://www.vestfirdir.is/static/files/Soknaraaetlun/vestfjardastofa_soknaraaetlun-

2020-2024.pdf

Vestfjarðastofa. (n.d). [Map of Vestfjarðaleiðin] [Online image].

https://www.vestfirdir.is/static/files/Ferdathjonusta/cw200049_vestfjardastofa_vestfjardal

eidin_kort_isl2_hd_20200611_end.png

Vestrum, I. (2014). The embedding process of community ventures: Creating a music festival in

a rural community. Entrepreneurship and Regional Development, 26, 619-644.

https://doi.org/10.1080/08985626.2014.971076

Vestrum, I., & Rasmussen, E. (2013). How community ventures mobilise resources: Developing

resource dependence and embeddedness. International Journal of Entrepreneurial

Behaviour and Research, 19(3), 283–302. https://doi.org/10.1108/13552551311330183

When are you going home. (2017, August 23). Westfjords, Iceland. [Attached image] [Blog

post]. https://whenareyougoinghome.com/2017/08/23/westfjords-iceland/

Wilson, L. (2015). Finding the win-win: Providing supportive and enriching volunteer tourism

experiences while promoting sustainable social change. Worldwide Hospitality and

Tourism Themes, 7(2), 201–207. https://doi.org/10.1108/WHATT-12-2014-0045

Woolcock, M. (2001). The Place of Social Capital in Understanding Social and Economic

Outcome. Canadian Journal of Policy Research, 2, 65-88. Saint-Laurent, Québec:

Presses de l'Université de Montréal

Woolcock, M., & Narayan, D. (2000). Social Capital: Implications for Development Theory,

Research, and Policy. World Bank Research Observer, 15(2), 225–249.

https://doi.org/10.1093/wbro/15.2.225

World Trade Organization. (2007). A Practical Guide to Tourism Destination Management.

Madrid.

Ziakas, V., & Costa, C. A. (2011). The Use of an Event Portfolio in Regional Community and

Tourism Development: Creating Synergy between Sport and Cultural Events. Journal of

Sport & Tourism, 16(2), 149–175. https://doi.org/10.1080/14775085.2011.568091

Zillinger, M. (2006). Organizing Tourism Development in Peripheral Areas: the Case of the

Subarctic Project in Northern Sweden. In D.K. Muller & B. Jansson (Eds.), Tourism in

the Peripheries: Perspectives from the Far North and South. Centre for Agriculture and

Bioscience International

Appendices

Appendix 1. Interview guide for tourism entrepreneurs

I. General questions: 1. Entrepreneur:

a. Role(s) b. For how long? c. Origin d. Involvement into AFS? 2. Enterprise: a. Sector b. Location c. Starting time of the venture d. Size of the company e. Year-round/seasonal f. Products and/or services g. Target group (statistics?) II. Network and collaboration a. Collaboration (partners + sponsors): i. Current ii. Wanted (with whom and why?) b. Collaboration with AFS: i. Current (yes/no) ii. Would you like? Why? III. Perceptions about AFS a. (If established before AFS) What has changed in your business performance since emergence of AFS? b. What opportunities do you see in collaboration with AFS? c. What challenges do you see in collaboration with AFS? d. Do you have any suggestions on how this collaboration could be implemented? IV. Summary a. In general, how do you consider impact of AFS on your business? Why? b. How would you define the role of AFS in general? c. Do you see a potential in AFS in terms of destination development? In what way?

Appendix 2. Interview coding

Interview Location Involvement Code Category № format (business) in AFS (*)

1 Zoom R1* Region - Yes 2 Live R2 Region - No 3 Live M1 Municipality - No 4 Live M2* Municipality - Yes 5 Live C1* Civil org - Yes 6 Live R3* Region - Yes 7 Live EH1 Entrepreneur: hotel Flateyri No 8 Live ED1 Entrepreneur: dining Isafjordur No 9 Live - Festival founder - Yes 10 Live ET1 Entrepreneur: tour operators Isafjordur No 11 Live EM1* Entrepreneur: mixed Isafjordur Yes 12 Live M3 Municipality - No 13 Live ED2 Entrepreneur: dining Isafjordur No 14 Live ET2 Entrepreneur: tour operators Isafjordur No 15 Live EH2 Entrepreneur: hotel Isafjordur No 16 Zoom EM2* Entrepreneur: mixed Bolungarvik Yes 17 Live EH3 Entrepreneur: hotel Flateyri No 18 Live ET3 Entrepreneur: tour operators Isafjordur No 19 Zoom EC1 Entrepreneur: culture Isafjordur No 20 Zoom EM3 Entrepreneur: mixed Sudureyri No 21 Live ED3 Entrepreneur: dining Thingeyri No 22 Zoom EH4 Entrepreneur: hotel Heydalur No 23 Live EH5 Entrepreneur: hotel Isafjordur No 24 Live ED4* Entrepreneur: dining Isafjordur Yes

Appendix 3. SWOT-analysis of AFS

Strengths: Weaknesses: Increase of community pride Short-term impact Enhancement of destination image Self-reliant organization Extension of tourist season Specific target groups (low profitability for Attraction of new target groups accommodation + tour operators) Opportunities: Threats: Collaboration and networking between local Competitiveness with other service providers businesses (co-branding, packaging) Overembeddedness of the festival Increased usage of local suppliers and Reluctance to commercialization products Excess of the carrying capacity of destination Facilitation of tourism infrastructure Uncontrolled growth development (accommodation, transportation)

Appendix 4. Social capital of Ísafjörður

Social capital

Local Public sector organizations SMEs

The University Westfjords Vestri Centre of Menntaskólinn Ísafjarðarbær Dining Hotels Museums Tour operators Transportation Regional Agency municipality sports club Westfjords á Ísafirði

Westfjords Tourist Nonsence Amazing Development Information Hamraborg Hotel Isafjordur Taxi Isafjordur Women's group Museum Westfjords Fund Center

Visit Westfjords Managisting Museum of Ski Week Tjoruhusid West Tours Vestfjarðaleið bus DMO Guesthouse Everyday Life company

Westfjords AirBnBs and Husid Borea Adventures AVIS car rental Heritage Museum private housing

Isafjordur Culture Edinborg bistro Aurora Arktika Samskip House

Dokkan brewery Wild Westfjords

private guides

77 Appendix 5. Network of key service providers involved in AFS1

Icelandair (Air Iceland Connect) Hotel Menntaskólinn Isafjordur Ísafirði Hamraborg Transportation Tjöruhusid

Lodging Samskip AVIS Dining/ catering Netto

Dokkan brewery Merchandise AFS Kampi Venue

66 North Edinborgarhusid Funding F&F Women's Landsbankinn group Staff Region (temporary) Sports Municipality clubs

1extract based on data analysis, year unspecified