DEVELOPING MARKETING STRATEGIES FOR TOURISM DESTINATIONS IN PERIPHERAL AREAS OF EUROPE: THE CASE OF BORNHOLM Ann Hard A thesis submitted in partial fulfilment of the requirements of Bournemouth University for the degree of Doctor of Philosophy December 2002 t). _ýi-r -,": )ýýýý Bournemouth University in collaboration with Centre for Regional and Tourism Research, Bornholm, Denmark Abstract This thesis concentrates on the subject of destination marketing with a specific focus on the process of developing strategies through a Destination Marketing Organisation (DMO) for a peripheral area, illustrated by a case study from the Danish island of Bornholm. It investigates the theoretical foundations for destination marketing, concluding that there should be a shift in focus from general marketing theory to a broader application of organisational theories and associated fields, enabling the DMO to improve performance. The specific conditions for and structures of peripheral areas indicated that the process in these areas should be adapted to the circumstances generally experienced there. Specifically the predominant occurrence of life-style businesses in peripheral areas, either as micro- businesses or SMEs, which are planning on a short-term basis, need to be included in the strategic planning process by viewing them as `cooperative customers'. Thus, applying the principles of marketing to the development of the strategy itself and viewing the strategic plan as a `product' of the DMO. The theoretical analysis showed that DMOs cannot control all of the components of the marketing mix, but they can cooperate with the providers of the destination mix and incite `coopetition' for the benefit of the visitors. The case study portrayed the DMO at a mature cold-water resort in a European peripheral area; it also illustrated the general development of tourism to the island and the impact of this development on the organisational structure of the tourism industry. It is assumed that the findings are transferable to other destinations that operate under similar conditions. List of contents Abstract 3 .......................................................................................................... Preface 10 .......................................................................................................... Acknowledgments 10 ........................................................................................ Author's declaration 12 ..................................................................................... List 13 of abbreviations ..................................................................................... 1 Introduction 15 ...................................................................................... 1.1 Aim the investigation 16 and objectives of ..................................... 1.2 Presentation the 17 of problem ....................................................... 1.3 Research 21 questions ..................................................................... 1.4 Thesis 21 structure .......................................................................... 2 Methodology 22 .................................................................................... 2.1 Methodological 22 approaches....................................................... 2.2 A 24 case study ............................................................................... 2.2.1 Designing the 26 case study .................................................. 2.2.2 Data for the 29 collection case study .................................... 2.2.3 Conducting the 34 case study ................................................ 2.2.4 Analytical to 40 approach case study evidence .................... 2.2.5 Composing the 42 case study report ..................................... 2.2.6 Further the 42 use of case study report ................................. 2.3 Summing thesis 44 up methodology ............................................... 3 Marketing a tourism destination - definitions, differences from in 46 marketing general, challenges.................................................................. 3.1 The DMO 46 role of the ................................................................ 3.1.1 Defining tourism destination 48 a ......................................... 3.1.2 Tasks DMOs in 51 associatedwith general .......................... 3.2 DMO body 54 as a marketing ......................................................... 3.2.1 Customer focus for destination 55 marketing ....................... 3.2.2 Marketing SMTEs 57 and ..................................................... 3.2.3 Marketing parameters ...................................................... 59 3.2.4 Marketing research intelligence 61 and marketing ............... 4 3.2.5 Market Segment 62 ............................................................... 3.2.6 ProductMix 65 ...................................................................... 3.2.7 Pricing Policy 66 ................................................................... 3.2.8 Distribution 67 policy ........................................................... 3.2.9 Sales Policy 68 ...................................................................... 3.2.10 Promotion Policy 69 .............................................................. 3.3 Destination branding 73 .................................................................. 3.3.1 What is branding? 73 ............................................................ 3.3.2 Destination branding 75 ........................................................ 3.4 The DMO in development 79 a context of regional ....................... 3.4.1 Peripheral definitions 80 areas - ............................................ 3.4.2 Peripheral in tourism 82 areas a context ............................... 3.5 Strategy development DMO in 89 through a peripheral areas........ 3.5.1 Definitions 89 of strategy ...................................................... 3.5.2 Formulating 90 a strategy ..................................................... 3.5.3 Strategy development 91 ....................................................... 3.5.4 The 92 concept of strategizing .............................................. 3.5.5 Other tendencies in theory 94 strategy .................................. 3.5.6 Marketing development 95 strategy ...................................... 3.5.7 Development for 103 strategies peripheral areas.................. 3.5.8 Tourism development 104 related strategies ........................ 3.6 Summing the theoretical basis 107 up ............................................ 4 Developing for Bornholm 110 marketing strategies - the case study ... 4.1 Bornholm in brief 110 ..................................................................... 4.2 Tou in Bornholm 113 rism ............................................................... 4.2.1 Historic tourism development 114 ........................................ 4.2.2 Tourism 119 today ................................................................ 4.3 Destination Bornholm 155 .............................................................. 4.3.1 Historic development background 156 and .......................... 4.3.2 Organisational 159 structure ................................................. 4.3.3 Financing DB 163 ................................................................. 4.4 Developing the 167 marketing strategy .......................................... 5 4.4.2 Outside influences 182 .......................................................... 4.5 Putting to 184 the strategy work ..................................................... 4.5.1 DB's 184 marketing activities ............................................... 4.6 Visitor destination 186 viz. profile ................................................. 4.7 Industry involvement 189 ............................................................... 4.8 Challenge for improved 190 performance ...................................... 5 Theoretical impacts destination 193 on marketing planning ................ 5.1 Difficulties in developing destination 194 a marketing strategy .... 5.2 Analysis the DMOs 200 of wider context of .................................. 5.2.1 Lessons from destinations 201 other ..................................... 5.2.2 The influence 204 of peripherality ........................................ 5.3 Sub-conclusion 208 ......................................................................... 6 Conclusion 210 ..................................................................................... List 213 of references....................................................................................... Select bibliography 225 .................................................................................... List of figures Figure 2-1 Detailed 29 case study sequence.................................................... Figure 2-2 Framework for interviews 33 the other trade .................................. Figure 2-3 Case 43 study structure ................................................................... Figure 2-4 Case foundation 45 study and application ....................................... Figure 3-1 The Marketing System 62 ............................................................... Figure 3-2 Destination/visitor fit table 65 profile ............................................. Figure 3-3 Illustration destination 77 of various management elements......... Figure 3-4 Simple 89 model of a strategy ........................................................