Another $multimillion tourism destination opportunity

Sustainable seasonality a source of success

It has often struck me that the enemy of sustainability is seasonality and that almost every seasonal destination represents a massive opportunity.

So I was strongly drawn to a round table discussion at IHIF – the top-drawer big ticket ( €2000 a person) International Hotel Investment Forum in Berlin http://www.berlinconference.com/.

If there was any knowledge about getting maximum tourism destination revenue to be learnt – it would be here where the big financial guns are.

The fact is that excessive seasonality hits on every pillar of sustainable tourism – economic (obviously), social (what does a workforce do when it’s not working?), cultural (how can you sustain an empty destination’s culture?) and environmental (who is going to pay for environmental heritage if there is no-one to enjoy it?).

But more importantly than all that, empty destinations impact on the key sustainability issue – WASTE. Empty destinations are simply a waste of resources – money, investment, property, workers – the lot.

A seasonal destination is inefficient. On the other hand an unseasonal destination can offer quality employment and training, a sustainable future and an enhanced pride in built and natural environments.

And, if your destination is looking for investment in any form – new hotels, new businesses, new people they will be attracted by somewhere that is vibrant year round.

The big hoteliers, hotel investors, hotel developers know, and a very new breed of company – hotel asset managers

So how?

Christian Walter, Managing Director of PKF hotelexperts   led a discussion with a bunch of top hoteliers and investors to see if they could come up with some answers and here they are:

• Look at role models – eg Schloss Elmau, Germany; Six Senses Douro Valley, Portugal
• Before you start: brainstorming on what actually defines ‘your’ seasonality
• It’s all about the stakeholders – so who are the stakeholders in your destination? Identify the relevant stakeholders and talk to them. Non-communication is a missed opportunity.
• Is there a proper destination management & marketing in place? If yes: Talk to them! If not: YOU have to set up your own destination management & marketing. Is there a tourism masterplan?
• Are there any niches you may position yourself in?
• Masterplanning is key.
• Consider shutting down during the shoulder/off-season – keep the hotel/resort operating but save money on utilities, maintenance, etc.
• Make the best out of the slow season: This is the best time for repair & maintenance, strategising, etc!
• Think out of the box: Target different feeder markets throughout the year, e.g. individual travellers during the peak season and yoga groups during the off-season.
• Is there an alternate use for destination properties? The student accommodation example: When the students are out for the semester break, sell the rooms as hotel rooms.
• To brand or not to brand? A strong brand may help put a hitherto unknown destination on the map of the world traveller. However, it does usually not help overcome seasonality – so don’t rely on branding!
• A spa may help, but it needs to be a really good one with authentic/niche offerings and no compromises on quality.
• Meeting facilities may help, but again they need to be really outstanding.
• Food and Beverage may help, too – but capitalise on your seasonality. Don’t serve strawberries in November – turn the supposed disadvantage into something exciting and surprise your guests with regional produce.
• A medical component may help. But don’t make it too medical (unless you want to run a hospital).
• If all of the above don’t work: Become a tour operator and fill your own hotel(s).
• And last but not least the most important lesson: It’s all about the programming. The right hardware is a pre-requisite. But this is not what keeps your visitors entertained. You need to offer them activities, and don’t rely on others to do so. This way, a week in the Douro Valley in grey November can be a very enriching experience!

This is an excerpt of this week’s folio update details HERE

Valere Tjolle

@ValereTjolle [email protected]

See also:

Key green tourism destination & branding seminar for autumn Italy

2017 green trade opportunity unveiled