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Tourism Strategy Albania 2012-2017 A Proposal Building on Albania‟s Efforts to Create
a Sustainable Travel and Tourism Industry
STRATEGY CHALLENGE MANAGEMENT REPORT
Albania
Group 27
May 31st, 2012
HONOUR CODE
As a student at the Ecole hôtelière de Lausanne, I uphold and defend academic integrity, academic rigor and academic liberty as core values of higher learning. I attest, on my word of honour, that work submitted in my name is my own work, and that any ideas or materials used in support of this work which are not originally my own are cited and referenced accordingly. Martin Chanel 403615626 . . Jael Fischer 567847446 . . Tatiana Halimi 567833929 . . Fatine Rahhou 571239389 . . Christopher Reinhard 567837055 . . Stéphanie Vonlanthen 870852318 . .
TABLE OF CONTENTS
Strategy ........................................................................................................................................... 1
Rationale ......................................................................................................................................... 1
Key Target Market .......................................................................................................................... 2
Albania‟s Positioning through Differentiation................................................................................ 2
Project Description & Objectives ................................................................................................... 3
Project Development ....................................................................................................................... 4
Project Organization and Stakeholders ....................................................................................... 4
Project Life Cycle and Timeframe .............................................................................................. 5
Pilot Test & Appraisal ............................................................................................................ 5
Implementation & Marketing ................................................................................................. 5
Project Financial Sustainability .................................................................................................. 6
Forecasted Impacts of the Project ................................................................................................... 7
Conclusion ...................................................................................................................................... 7
List of References ........................................................................................................................... 8
Bibliography ................................................................................................................................... 9
Annexes......................................................................................................................................... 12
Annex 1 – The Albanian „Experience Travel‟ Market Tourism Offer ..................................... 12
Annex 2 – Target Market Segmentation: the „Experience Travel‟ Market .............................. 13
Annex 3 – Stakeholders & Stakeholder Management .............................................................. 14
Annex 4 – Evaluation Criteria of the New Program ................................................................. 15
Annex 5 – Timeframe of Proposal ............................................................................................ 16
Group 27 | Ecole hôtelière de Lausanne
Strategy Challenge Management Report | Strategy 1
STRATEGY
A quality travel and tourism (T&T) provider certification program to encourage the development
of and aid in the promotion of rural Albania as an attractive destination for the ‘experience
travel market’ (adventure, nature, and cultural tourism).
This project will contribute to the further development of Albania‟s current strategic destination
plan and policies. It aims at encouraging the development of T&T products and services based on
criteria of the Global Sustainable Tourism Council (GSTC), coalition between 27 organizations,
including tourism leaders from around the globe, introduced in 2008. The framework aims at
improving the quality of T&T products and services on offer, focusing on the conservation of the
cultural, historic, and natural attributes of the country while ensuring socioeconomic benefits for
its residents. This will allow certified T&T providers to differentiate themselves and guarantee
GSTC quality-based standards. In order to create significant international awareness about this
program, this project equally includes a focused marketing communication plan.
RATIONALE
The Strategy is in answer to an analysis of the current and forecasted evolution of the Albanian
T&T Industry and takes into account global trends. Research showed there is a:
lack of a T&T offer complying to internationally recognized quality standards
(Euromonitor, 2012);
growing demand of the international „experience travel market‟ for which Albania‟s offer
(pristine and undiscovered natural, cultural, and historical assets) is particularly suited
(refer to Annex 1 for a visualization of how the offer matches the target market);
lack of positioning in the global market;
need for countries to develop in a sustainable way in order foster long-term socioeconomic
growth.
In addition, the Strategy was created in line with the objectives of the United Nations World
Tourism Organization (UNWTO) Silk Road Initiative (SRI), as well as Albania‟s current focus
on three UN Millennium Development Goals (MDGs), poverty reduction, gender equality, and
environmental sustainability. Albania‟s limited resources available for the development of the
T&T Industry have equally been taken into account.
Group 27 | Ecole hôtelière de Lausanne
Strategy Challenge Management Report | Key Target Market 2
KEY TARGET MARKET
There is an increasing trend in people looking for unique and personalized experiences, which
according to Deloitte (2009) shows a shift from „escapism‟ to „enrichment‟. This growing market
has been identified as the experience travel market, consisting of three niche segments:
adventure, cultural, and nature-based tourism (including ecotourism), which are all sustainable
forms of responsible tourism (Hassan, 2012). Despite differences, these three segments desire
similar T&T offers when they visit a destination and frequently overlap (Tourism New South
Wales, n.d.). This is confirmed by the Adventure Travel Trade Association (2010) that defines
adventure travel as “any domestic or international trip that includes at least two of the following
three aspects: physical activity, interaction with nature, and cultural learning or exchange”. This
is why these three segments are classified together under „experience travel‟.
The adventure travel market alone accounted for approximately 27% of global trips between
2007 and 2010 (George Washington University School of Business, ATTA, & Xola Consulting,
2010) and is forecasted to grow by 10% annually over the next ten years (Deloitte, 2009). Further
research1 highlights the key characteristics of the „experience travel‟ market as:
looking for an authentic atmosphere and seeking to learn something new;
having a long average length of stay, which is forecasted to increase;
willing to spend a considerable amount on these trips;
mostly finding their information on the Internet: many search for the destination on
Google; more than 30% look at the destination‟s website; about 20% use social media;
usually visiting a destination with no or few bookings and very few opt for a package;
tending to travel independently (not part of an organized tour).
Refer to Annex 2 for further details.
ALBANIA’S POSITIONING THROUGH DIFFERENTIATION
From an international perspective, Albania is at its early „discovery stage‟ as a destination and
remains little known. This is seen as an opportunity for the government to decide how Albania‟s
T&T offer should be positioned, against which destinations it should compete, and take action to
differentiate itself. This Strategy will attract niche markets to Albania, thereby differentiating its 1 ATLAS, 2007; George Washington University School of Business et al., 2010; Partners in Tourism: Culture and Commerce, 2011; UNWTO, n.d.; WTO, 2000.
Group 27 | Ecole hôtelière de Lausanne
Strategy Challenge Management Report | Project Description & Objectives 3
T&T Industry from its neighbouring countries (Croatia, Montenegro, Greece, Turkey, and
Bulgaria), which are more mature destinations mainly attracting mass „sun and beach tourism‟
(refer to Figure 1) (Ministry of Territory Adjustment and Tourism, 2003). In light of this, and
considering the target market for this Strategy, direct competitors have been identified as being:
Thailand, New Zealand, Costa Rica, Patagonia, Uganda, and Australia. These have differentiated
themselves through their sustainable offer and international awareness (refer to Figure 2). Many
of these countries have reached maturity, whereas Albania has the opportunity to position itself as
a destination that offers something new and little known, which is important to this target market.
Figure 1: Positioning Map: Figure 2: Positioning Map: Albania & its Neighbours Albania & its Competitors
PROJECT DESCRIPTION & OBJECTIVES
In 2010, in partnership with the Albanian Tourism Association (ATA), USAID‟s Rritje Albania
(„Grow Albania‟) project launched Albania‟s first quality certification system for tourism
accommodation: the Authentic Albania Quality Mark. Since its launch, the program has
successfully evaluated 40 hotels based on international hospitality standards and GSTC criteria.
Having been developed in response to one of Albania‟s most recognized weaknesses (quality and
rating of lodging facilities), this program has true potential of creating value for its T&T Industry.
Research shows that accommodation supply is merely a prerequisite for travellers (Reisinger,
Mavondo, & Crotts, 2009). Instead, the availability and attractiveness of activities is a driving
factor to attract visitation. Taking this into consideration, it is suggested that the program‟s
certification be extended to: local tour operators, food and beverage outlets, and activity
providers (such as wineries, arts and crafts production sites, and plantations). The aim of this
UNSUSTAINABLE SUSTAINABLE
Group 27 | Ecole hôtelière de Lausanne
Strategy Challenge Management Report | Project Development 4
expansion is to further develop the current program in order to increase the attractiveness of
Albania‟s T&T product and service offer for the selected target market and as a result, draw
visitation to Albania. This extended version of the program is henceforth referred to as ‘New
Program’.
Secondly, seeing that USAID will end its support of the Authentic Albania Quality Mark program
in 2013, a reinforcement of Authentic Albania is seen as crucial in order for it to be sustainable
over time. The key weakness of this program has been identified as being the effectiveness of its
communication strategy, demonstrated by the limited amount of information available online,
and its complete lack of presence on official T&T websites.
The New Program needs to be successfully marketed to the international community and enable
certified T&T providers to use it as a marketing tool. In order to reach these goals, the Strategy:
1. includes recommendations as to how the New Program‟s Internet presence can be
developed in order to attract potential customers to whom Albania is unknown;
2. suggests the implementation of an online trip planning platform uniting all Authentic
Albania certified T&T providers in order to reach customers already demonstrating an
interest in visiting Albania.
PROJECT DEVELOPMENT
PROJECT ORGANIZATION AND STAKEHOLDERS
In order for the New Program to be valued, it will be developed in collaboration with all sectors
involved (educational, public, and private) and bring together all major stakeholders in order to
receive their commitment to the New Program through ownership, meaning each stakeholder
knows what tasks they are responsible for.
As very little information on the current organization of the New Program is available, potential
partners have been identified. The official entity in charge of the New Program and responsible
for its implementation will be the Ministry of Tourism of Albania. However, its development will
include the educational, private, and public sectors, potentially represented by the University of
Tirana (UT), Albanian Tourism Association (ATA), and Institute for Environment Policy (IEP),
respectively. In addition, it will be supported by the Directorate of Accreditation (Ministry of
Economy, Trade, and Energy) which will be responsible for the review of applications, the
Group 27 | Ecole hôtelière de Lausanne
Strategy Challenge Management Report | Project Development 5
official awarding of the certification, and regular auditing of participants. Refer to Annex 3 for
more details on stakeholders.
PROJECT LIFE CYCLE AND TIMEFRAME
It is suggested that this collaboration be carried out throughout the project‟s entire lifecycle in the
following ways:
1) The development of the rating criteria will be done during workshops focusing on specific
areas of the certification (refer to Annex 4 for more details); 2) the New Program will be pilot
tested on three to five voluntary T&T providers who will contribute to further developing the
criteria in a realistic and constructive manner; 3) the New Program will be launched nationwide
and the focused marketing communication plan will begin; 4) yearly assessments (over the period
2013-2017) of the New Program‟s progress will take place which will include all major
stakeholders, especially certified T&T providers.
PILOT TEST & APPRAISAL
A pilot test is crucial to ensure the feasibility of this New Program, as well as evaluate time,
costs, and benefits. Central Albania was chosen as a primary area of interest for the pilot test,
which will be carried out in the area along the Egnatian Way (Elbasan, Pogradec, Berat, Fier, and
Dajt), a historical trade route between the Adriatic shores of Albania and Macedonia. This area
was deemed to be representative of Albania‟s offer suited to the „experience travel‟ market and
underpins Albania‟s link to the Silk Road.
IMPLEMENTATION & MARKETING
Seeing the success the original Authentic Albania Quality Mark program has had since its launch,
it seems that a strong implementation structure has been created which can be used for the New
Program. The focus is therefore on marketing and communication.
Information about Albania‟s T&T offer is currently widespread on the Internet. Although this
means all necessary information is available, the fact that it is spread out on so many different
platforms, makes the information search a difficult task for prospect visitors. The first
Development Pilot Test & Appraisal Implementation & Marketing Evaluation
Group 27 | Ecole hôtelière de Lausanne
Strategy Challenge Management Report | Project Development 6
recommendation is that Albania takes ownership of its Internet presence and consolidates all
information into one unique, official website. This website‟s architecture should consider search
engine optimization, which aims at increasing a website‟s appearance on search engines using
key words. Additionally, Albania should continue establishing its presence on Social Media
platforms as this is another important information source for the identified target market.
An online application („Plan your Authentic Albanian Trip‟) will be created to promote this New
Program and certified T&T providers. Based on a series of questions (similar to a survey), it will
suggest a personalized Authentic Albania travel itinerary exclusively including certified
providers.
PROJECT FINANCIAL SUSTAINABILITY
It is suggested that this New Program development, the pilot test phase, and the set up of the
online application be entirely financed by the Albanian Government. According to benchmarked
programs and taking into consideration that the New Program will be built on an existing
structure, it can be expected that these costs reach a low US$ 250,000.
Upon implementation, a onetime certification fee as well as an annual membership fee will apply
to partnering T&T providers in order to cover the ongoing operating costs of the New Program.
These fees will be established based on business size and turnover; yet, the membership fee will
be exponential whereby larger firms will partially support the costs of smaller ones.
In order for the project to rapidly meet its objectives, it is critical that it successfully penetrates
the Albanian T&T market. Increasing the number and diversity of certified T&T providers will
increase the opportunities there are to market the label and to gain recognition for it. In turn, the
more consumers become familiar with the label and associate with it, the greater the marketing
power it will provide.
The abovementioned fees are expected to be the main barrier to market penetration in the first
stages of implementation, with businesses likely question if the expected benefits of the New
Program will offset its costs. In order to encourage T&T providers to apply for the certification,
the certification fee will be reduced and the first membership fee will be offered to businesses
having applied within the first year of implementation. The funding necessary for this part of the
project will equally originate from the government and is expected to reach about US$ 50‟000.
Group 27 | Ecole hôtelière de Lausanne
Strategy Challenge Management Report | Forecasted Impacts of the Project 7
FORECASTED IMPACTS OF THE PROJECT
The impacts of this project are closely linked to the number of visitors it will be able to attract. A
similar program in Costa Rica yielded an average annual growth rate of 10.8% in terms of
demand over a ten year period following its implementation (The World Bank Group, 2011).
Using this as a benchmark, and considering Albania‟s early stage of development as a destination
and its low international awareness, a 5% annual growth rate in demand is deemed realistic for
this New Program. This growth rate has been applied to 30% of forecasted international arrivals
(representing the „experience travel‟ market) to establish the following numbers:
Total International ‘Experience Travel’ Market Arrivals
2012 2013 2014 2015 2016 2017 483'462 535'434 592'993 656'740 727'340 805'529
Seeing this forecast and taking into consideration the aforementioned project description, it can
be expected that this Project will have the following impacts:
Impacts Key Performance Indicators Increase Albania‟s competitiveness as a tourism destination; WTTC T&T competitiveness
index Increase visitation to Albania; International arrivals statistics, Enhance visitor dispersal and tourism expenditure throughout rural Albania;
Occupancy rates an n° of visits to attractions in rural Albania
Promote sustainable tourism development in rural Albania; N° of certified businesses Contribute to long term economic growth of Albania. GDP, T&T contribution to GDP
CONCLUSION
This project proposal aims at serving as a vehicle for socioeconomic growth in rural Albania. For
it to succeed, it must receive the support of all stakeholders, especially T&T providers. For the
proposed New Program to yield benefits for its certified providers, its marketing communication
actions need to be continuous over the first critical years of development in order to create global
awareness of this certification. In fact, the proposal represents a relatively small investment and
the pilot test ensures minimal risk. If the New Program proves to be successful in attracting
international visitors to Albania, it can be further extended to other Silk Road countries in order
to unify the T&T offer and create a network of authentic providers in key countries along the
route. In the future, it is also recommended that the project is developed to have an educational
program to assist uncertified providers become more sustainable to achieve the certification.
Group 27 | Ecole hôtelière de Lausanne
Strategy Challenge Management Report | List of References 8
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Strategy Challenge Management Report | Annexes 12
ANNEXES
ANNEX 1 – THE ALBANIAN „EXPERIENCE TRAVEL‟ MARKET TOURISM OFFER
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Strategy Challenge Management Report | Annexes 13
ANNEX 2 – TARGET MARKET SEGMENTATION: THE „EXPERIENCE TRAVEL‟ MARKET
Rationale In today‟s fast-paced world and rapidly evolving environment, people are seeking a break from
their daily routine when they go on holiday (Sodhi, 2011). They are increasingly interested in
discovering something new and are in need of experience-based travel (Deloitte, 2009).
Additional causes of this change in travel habits are an increase in the number of health-
conscious consumers who want to remain fit while avoiding stress (Sodhi, 2011), as well as an
increase in worldwide environmental awareness and social responsibility. The ageing
population is also contributing to this shift in travel habits since they have a demand for
„experience travel‟ (Deloitte, 2009).
Segmentation Variables Geographic: Key Sources of Origin - Latin America (about 35%); Europe, mostly Germany (about 25%); North America (about
20%); emerging markets: China, Brazil, and India; other: Australia and New Zealand Demographic: Income - Generally have a higher disposable incomes, leading to greater spending Psychographic: Lifestyle, Social Class, and Attitudes - Interested in discovering new, authentic places and willing to visit far-off destinations to do so - Ask for authentic experiences - Enjoy spending time in nature, practicing sports, and learning about new cultures - Mostly middle class, well-educated tourists interested in natural and intangible elements - Want to learn about and understand the places they visit by engaging with new cultures Technographic: Level of Use of Technology - Very knowledgeable about technology, which forms a vital part of their life Buying Behaviour: Purpose/Occasion, Frequency of Use, Buying Habits, Sources of Information before Purchase, and Booking Methods: - Seek a realistic, authentic snapshot of a destination; interested in adventure, culture and nature - Average length of stay of about seven days - Willing to spend considerable amounts in order to experience something new - Mainly use the Internet to find information, especially by searching for a destination on
Google, looking at a destination‟s website, and using social media (including reading a blog or viewing a friend‟s photos to find out more about a destination)
- Tend to visit a destination with no or few bookings, and usually travel independently Sources: George Washington University School of Business et al., 2010; ATLAS, 2007; Mintel, 2010
ANNEX 3 – STAKEHOLDERS & STAKEHOLDER MANAGEMENT
Stakeholder Their Contribution Project Benefits on them Bargaining power Interest Priority Management plan
Government related institutions
The continuity, quality, and recognition of the program depends on their support as they are included in every stage of the program‟s lifecycle and are the only source of financing
support the development of the T&T industry in-line with their strategy
contribution to the image and attractiveness of Albania
economic growth and environmental conservation
High, as they are the funding source
Medium, but
increasing
Key
player
regular performance measurement
collaboration with USAID and coordinated transition
clear objectives, responsibilities, hierarchy and program organization
Targeted tour operators, F&B outlets, and activity providers
Their adoption to the program and commitment to sustainable practices put forth by it will determine its level of success
differentiation opportunities promotion benefits alignment of their offer with
future trends enhancement of org.
reputation
High, but will decrease as the number of
participants increases High
Key
player
create awareness of the Program + benefits
educate on sustainable practices
support in the implementation
University of Tirana
Innovation of sustainable practices, contribution to the development of the criteria for the New Program
institutional credibility real-life projects for students
& faculty opportunity to contribute to
the country‟s development
High, as they hold the decision to participate, but will decrease once
committed (credibility of the institution)
High
Key player
recognize their contribution involve them in the whole
process include them in all official
communications
UNWTO The instigator of the project giving its framework and main objectives
contribution to the UNWTO SRI‟s objectives
image credibility
Low, as their implication is primarily supportive
High
Keep informed
include millennium objectives communicate on project needs
and achievements recognition of their support
Local communities
Coherence of the program in the eyes of visitors
preservation of their environment
contribution to the increase in their disposable income
promotion of their culture job creation and skill
development
Low, as their participation can be
ensured by regulatory frameworks
High
Keep informed
communication of the program value for them
reinvestment of income directed to the community
educate the population through schools on tourism and sustainability for Albania
International „Experience Travel Market‟
Economic contribution through the use of the services offered by certified businesses
opportunity to minimize their impact on the environment
ease of travel planning increased customer service matching offer to their profile
Medium / High, as their participation in the
project is determinant for its success
High
Keep informed
create awareness update and consolidate
customer profiles ask and consider feedback gather data
NGO‟s (environmental conservation)
Through supporting actions can contribute to this project and/or bring financing possibilities
supports their actions contributes to their success
Low, as they will not be directly implicated in the
project High
Keep
informed
communicate on the project goals, actions, achievements
identify areas needing support
Strategy Challenge Management Report | Annexes 15
ANNEX 4 – EVALUATION CRITERIA OF THE NEW PROGRAM
Certification Components
Description Indicators
Maximize
benefits for the
environment
and minimize
negative
impacts
T&T providers
consider their
immediate
environment in the
development of their
offer and contribute to
the conservation of
resources.
- Development of an offer minimizing the impact on
the environment
- Respect international and local legislation and
regulations
- Use of natural settings or attractions
- Customer education on responsible travel
- Implementation of recycling and waste management
Maximize
socioeconomic
benefits for the
local
community and
minimize
negative
impacts
T&T providers value
local communities and
conduct business in an
ethical manner.
- Contribution to gender equality through employment
and skill development through training
- Contribution to the reduction of local unemployment
(employment of local staff, guides, suppliers)
- Ethical wage levels
- Contribution to the economic development of local
sites, organizations, associations or businesses
included in their offer
Maximize
benefits for
cultural heritage
and minimize
negative
impacts
T&T providers put
great emphasis on
promoting the
Albanian culture and
seek to offer an
Albanian experience to
their customers.
- Promote visits to local cultural and historical sites
- Contribution to the protection of local historical,
archaeological, and culturally important sites
- Offer access to cultural discoveries (arts & craft
production, farming, etc)
Strategy Challenge Management Report | Annexes 16
ANNEX 5 – TIMEFRAME OF PROPOSAL
Description Stakeholders involved Actions Time (Months)
Inform all stakeholders Round tables and workshops
The Ministry of Tourism, Culture, Youth and Sport; the Directorate of Accreditation (Ministry of Economy, Trade, and Energy); UT; ATA; IEP.
- Project description and objectives approval - Setting, contribution, responsibilities and tasks
of each stakeholder - Budgeting and budget approval
3
Establish Framework Workshops
The Ministry of Tourism, Culture, Youth and Sport; UT; ATA; IEP.
- Adapt criteria for new business types - Determine rating method and grading system 6
Pilot Test The Ministry of Tourism, Culture, Youth and Sport; the Directorate of Accreditation (Ministry of Economy, Trade, and Energy); UT; ATA; IEP.
- Determine participating businesses - Evaluate according to framework - Develop action plan & implement changes - Adapt framework
12-18
Data collection (applications), audit
The Directorate of Accreditation - Collect data from applicants - Audit applicants - Attribute certifications
-
Creation of ‘Plan your Albanian Trip’ application Design contest within UT
The Ministry of Tourism, Culture, Youth and Sport; UT.
- Design and create the application - Integrate all certified T&T providers to the
system - Pilot test application - Translate application - Roll out on national website
8-12
Web presence management
The Ministry of Tourism, Culture, Youth and Sport; ATA
- Restrict the number of websites using the terms: Albania – Tourism – Authentic
- Consolidate all information - Delete current public tourism websites - Redesign national website - Link the official website to the social medias
3-6