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

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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 .............................................................
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