Ms Madara Luka

e-mail: Madara.Luka@em.gov.lv

The BRANDTour Project

Increasing tourism competitiveness through

private and public sector cooperation

2

Challenge:

Tourism Competitiveness

Unknown as a tourism destination

Poor SME’s competitiveness

Low visibility of the country

3

International Competitiveness of

Latvia as a Tourist Destination

Organizing national stands in international tourism fairs and exhibitions abroad

Marketing and promotional activities

Financial support to SME’s for individual stands and participation in tourism related conferences and seminars abroad

370 SME’s will receive state aid in the planned marketing

activities

82 SME’s will receive financial support in the form

of grants

250 SME’s will receive non-financial support

Private co-financing 4,75 mlnEUR

4

Objectives and implementation

Objectives:

1. To promote Latvia as a sustainable tourism destination

2. To increase tourism SME’s international competitiveness

3. Tourism SME’s entry into new external markets

Implementation:

to provide financial (grants) and non-financial

(marketing) support to tourism SMEs.

5

National and Individual Tourism

Stands: Private Sector co-financing

National stands

Private sector co-financing 20%

from transport and

accommodation expenses (will

be changed to 50%)

Individual stands

Private sector co-financing 20%

from all the expenses (will be

changed to 50%) + other

limitations for max costs allowed

6

Joint Marketing and

Promotional Activities

Marketing activities of Latvian tourism board, based on the marketing strategy:

• Market analysis, market division into segments

• Organizing exploratory visits (journalists, tourism operators, travel agents, other specialists)

• Advertising campaigns, co-operation with the media (+Internet media)

• Participation in international tourist exhibitions, workshops and seminars

• Co-operation with partners – (embassies, tourism entrepreneurs, national organizations)

7

Joint Decision Making Process

for Marketing Activities

Investment and

Development Agency of

Latvia

Ministry of Economics

Advisory Council of the

Investment and

Development Agency of

Latvia

Tourism Committee

of the

National Economy Council

*Representatives of regional and

professional tourism associations

+ REGIONS

8

Exploratory Visits:

Cooperation of LIAA and SMEs

Tourism service providers choose to show their products for free

Accommodation sector offers to stay for free or with discount

airBaltic issues free airline tickets

Restaurants offer free meals or discounts

Free of charge entrance tickets to museums and tourism sights

Free tour guides etc.

9

Good Practice Example #1:

Puhkus Latis media

Special edition about Latvian

tourism products in the

Estonian newspaper

POSTIMEES

LIAA organize POSTIMMES

media exploratory visit to

Latvia

Program was planned

together with the industry

(TIC and SMEs)

10

Good Practice Example #2:

Hungarian tour operaors

Exploratory visit for 9

Hungarian tour operators

Program was planned and

implemented together with:

Hungarian Embassy,

airBaltic,

Hotel chains, Riga and

Jurmala tourism boards,

local tour operators and

SMEs

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Stakeholders and Beneficiaries

Tourism small and medium

enterprises and

institutions

Tourists Destinations

12

Resources Needed

Human resources:

10-15 people

Total funding: 20 mlnEUR.

Time scale: 2014 –2023

13

Direct Results Achieved

28 partners (associations and SMEs) have received state aid in the planned

marketing activities

21 partners (associations and SMEs) have received financial support in the

form of grants

21 partners (associations and SMEs) have received non-financial support

Private co-financing 275 thousand EUR

14

Indirect Results AchievedOVERNIGHT VISITORS IN ACCOMMODATION 2006 - 2017

1,329,890

1,487,3791,555,936

1,113,898

1,311,538

1,584,9961,644,758

1,839,241

2,098,3812,139,393

2,303,643

2,577,338

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

LV

Other

DK

FR

BY

PL

SE

NO

UK

FI

EE

LT

DE

RU

TOTAL

11,9% in 2017 1,78 million foreign visitors

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Indirect Results Achieved (2)

12% in 2017 Predicting over 5 million bed nights in 2018

BED NIGHTS IN ACCOMMODATION

4158418

4950929

0

1000000

2000000

3000000

4000000

5000000

6000000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

16

Indirect Results Achieved (3)

TOURISM EXPORT GROWTH IN 2017 7,4%

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Potential for Learning or Transfer

More than 90% of tourism entrepreneurs in the world are small and

medium enterprises

It is costly and difficult to become a successful and well known

tourism sight

With such financial aids or support programs it is possible to boost

SME’s competitiveness

Due to the co-financing factor, the support program ensures that

the SME’s are interested in the results, therefore the support

program is considered to be effective

Project smedia

Thank you!

Questions welcome!