Development Through Innovation For The First

National Park Of Denmark

Educational Institute: Aalborg University Student: Panagiotis Spanoudakis

Study Programme: Tourism MA Supervisor: Mikael Oddershede

Module: Innovation in Tourism Date of Submission: 29/5/2008

Characters excluding references and annexes: 55404

 Development Through Innovation

Front Cover Image from Vladstudio.

CONTENTS
INTRODUCTION.................................................................................................................................3

METHODOLOGY................................................................................................................................4

FOUR SEASON STRATEGY..............................................................................................................6

THE SEASONAL AFFECTIVE DISORDER IN TOURISM.........................................................10

THY NATIONAL PARK CENTRE................................................................................................13

HUMAN RESOURCE MANAGEMENT...........................................................................................18

HRM IN THE CONTEXT OF TOURISM......................................................................................20

THE SIGNIFICANCE OF SMALL MEDIUM ENTERPRISES IN TOURISM.............................22

ENTREPRENEURIAL EXPERIENCE TOURISM............................................................................25

EXPERIENCE IS THE 6TH SENSE?...............................................................................................27

FROM SERVICES TO EXPERIENCES AND FROM SERVICING TOURISM TO

EXPERIENCING LIFE...................................................................................................................29

CONCLUSIONS.................................................................................................................................31

BIBLIOGRAPHY...............................................................................................................................32

ANNEX 1............................................................................................................................................35

ANNEX 2............................................................................................................................................36

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INTRODUCTION
THE FIRST NATIONAL PARK OF DENMARK

According to the Federation of Nature and National Parks of Europe (Europarc 2008) the
summer of 2007 the coastal part of Thy area in Denmark which is 75% owned by public and
25% by private actors was declared as the first national park of Denmark. A development
proposal from public actors will set the management objectives for the development of Thy
national park which will include the relevant restrictions on town planning, infrastructure
development.

These development plans will most probably aim also in the increasing appeal of the
national park and the surrounding area to potential visitors and guests. A new destination
with the natural beauty of the first national of Denmark has all the bright possibilities
available. Possible threats to the harmonious development of the area can be countless.
Hypothesizing that the most dangerous threats are: seasonality and an uncertain development
course, a starting point can be set. Continuing on this hypothesis, both threats could be treated
with generous injections of innovation and creativity so that a competitive advantage can be
established and a development journey without turbulences through all four seasons can be
achieved.

PROBLEM FORMULATION

How can the first national park of Denmark and the greater area of Thy, be established as
a tourism destination that utilize innovative approaches to sustainable tourism development
with rich experience economy potential in order to gain a competitive advantage?

How can the area of Thy, establish a clear development direction that is both dependable
as a guiding value for whole-year tourism and flexible in order to meet the needs for possible
adaptation to future evolvements?

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METHODOLOGY
SCIENTIFIC VALIDITY

This study is developing existing scientifically documented knowledge which is retrieved

by research conducted to academically credible sources and literature in relevance with the
researched subjects that includes: academic research journals, articles and books, online
resources and second hand statistical research retrieved from the European bureau of statistics
and the national statistic agency of Denmark.

The proposals developed through this study, proceed carefully in order to exclude biased
personal views on the subjects analyzed, and the relevant conclusions produced. The use of
scientifically inadequately supported sources and materials has been avoided and a significant
effort has been made in order to ensure that all sources used for the development of this study
are properly acknowledged.

SETUP OF THE OPERATIVE PARADIGM

According to Arbnor and Bjerke (1997) in order to attempt to explain or understand

reality certain ultimate assumptions have to be made about reality that is collectively
preconceived. These ultimate assumptions are difficult to be influenced or even change short
term and collectively are referred to as paradigms. Moreover an operative paradigm is a
consciously developed conceptual framework of assumptions about reality that is able to
receive influence and change, within which the research is operating in order to make
possible the interpretation of the area which is being researched (ibid). Bryman (2004) refers
to consciously developed research designs as research strategies that within identifies the
following constituents:

1 Quantitative or qualitative research orientation

2 Inductive or deductive relation between theory and research

3 Explanatory or interpretative orientation

4 Independence or dependence between social actors and social phenomena

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 Development Through Innovation

This study is proceeding through a theoretical analysis and the approach to the research
area cannot be regarded as qualitative or quantitative. The use of theory in relevance with
research is deductive and develops from relevant literature. Induction of research into theory
may occur as an effort to revise theory.

Regarding the dependence between social actors and social phenomena, a basic
assumption that is being made throughout this study is that the research area is affected
mostly by social perceptions that evolve continuously. This assumption predominantly adopts
the point of view that social phenomena are constantly constructed and revised by social
actors.

Explanaticists or positivists according to Arbnor and Bjerke (1997: 45) are those who
deny the existence of a fundamental difference between the natural and the social sciences
() [and] maintain that the explanatory logics (e.g. causal explanations) in natural and social
sciences are identical. On the contrary researchers who make a distinction between the
methods of the classical natural sciences and those of the social sciences are often called
hermeneuticists (interpreters) (ibid). Moreover according to Arbnor and Bjerke (1997: 47)
hermeneuticists argue that:

These kinds of [explanatory] analyses are only valid in a rational world with rational
actors. They [Explanaticists] assert that such a world does not exist and is not even
worth aiming for () [and] understanding will never appear in as objective
knowledge in the shape of statistical regularities.

The difference between explaining and understanding according to Bryman (2004: 13) is
reflected on:

On a division between an emphasis on the explanation of human behavior ()

[which] is the chief ingredient of the positivist approach to the social sciences and the
understanding of human behavior. The latter is concerned with the empathic
understanding of human action rather than with the forces that are deemed to act on it.

A hermeneutical point of view suits the purpose of this study which is found mostly in the
interpretation of social phenomena and the behavior of actors rather that providing
explanations for complex phenomena under chaotic and constant revisions, such as those that
comprise the research area.

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FOUR SEASON STRATEGY

Leading an army as the term strategy implies has to do both with designing and leading
the way through the battlefield to the objective, sometimes in a non explicit way. Moreover,
strategy is the focal design that incorporates practical elements in contrast to a greater plan.
As an example, in the context of contemporary tourism the greater plan would most probably
be sustainable development, the battlefield could be the tourism destination, the soldiers
could be the human resource of all enterprises involved, our weapons are experiences, and
our strategy is how we are leading ourselves through the destination in order to disseminate
experiences to tourists.

The development of each seasonal segment in terms of promotion planning and branding
with the ultimate goal to produce a different proposal for each season that reveal the unique
characteristics of every season can be a challenging innovation for a destination. Such an
approach can be used in order to cultivate a whole new spectrum of expectations to potential
visitors. There could be something interesting going on every season. One might think, we
already do that, but only for the summer season! Why shouldnt we exploit the rest of the
seasons as well in order to create expectations?

Why marketing should be just advertizing, promotion and why not a strategy since it
contains design and leading through elements (mostly in the case of branding) by which, the
whole destination is shaped up into a mental design in order to disseminate experiences to
visitors. Weaver & Lawton (2006: 203) defines marketing as:

Involving little more than the promotional advertisements that are displayed through
television and other forms of media, () marketing involves everyone in the tourism
and hospitality sector, including tourists and potential tourists. Thus marketing is
pervasive throughout the tourism system

Moreover Marketing involves the interaction and interrelationships among producers

and consumers of goods and services, through which ideas, products, services, and values are
created and exchanged for the mutual benefit of both groups (ibid). These holistic
approaches to marketing as a function, fortify the argument that marketing could be replaced
by a greater strategy that aims to the creation of expectations by utilizing characteristics from
every season.

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IS THERE SEASONALITY IN REGION NORDJYLLAND OF DENMARK?

Lundtorps seasonality indicator shows the percent of the unused bed capacity, based
on the assumption that the supply of beds remain constant and that full occupancy is reached
during the maximum month (Bender et al. 2007).

Getz & Nilsson (2003) proposes three measures for the identification of extreme seasonality:

A high season that concentrates 50% or more of total arrivals or total nights-spend in
a destination.

A highest to lowest seasonal demand ratio that it is bigger the ratio of four to one
(because of the existence of four seasons) of either arrivals or nights-spend.

A low season that characterizes at least half of the year, when accumulated demand
(measured by arrivals or nights-spend) is less than 50% of the month that concentrates
the most demand.

The Tables presented in annex 1 contain statistical data about overnight stays for all types
of accommodation in region Nordjylland by month and year from 1992 to 2007 from
Statistics Denmark agency (2008). Chart 1 on page 8 summarizes and depicts the statistical
data grouped by month. The majority of nights spend is observed on the month of july,
showing the preference of tourists towards the summer season. If the three measures for the
identification of extreme seasonality of Getz & Nilsson are applied on the overnight stays of
region Nordjylland a better outlook of the seasonal fluctuations can be achieved. The
calculation is based on the average of overnight stays of every month for the years from 1992
to 2007. Detailed calculations can be found in annex 2.

Applying the first measure of Getz & Nilsson, if only July and August are taken as the
high season then it is observed that these two months account for the 50% of overnight stays
for the whole year.

On the calculation of the highest to lowest season ratio, if July and August are calculated
as the high season and the months from December to February are taken as the low season,
the ratio of highest to lowest season based on overnight stays in region Nordjylland is above
7 to 1

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On the calculation about the low seasons extend, July which is the month with the most
nights-spend from 1992 to 2007 accounts for 66% of accumulated overnight stays of ten
months.

Source of data: Statistics Denmark 2008

Source of data: World Meteorological Organization 2008

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The calculation of the three measures suggested from Getz & Nilsson verifies the
hypothesis that extreme seasonality is present on tourism demand in region Nordjylland of
Denmark. However the devastating difference in demand that it is observed at July in
relevance with June and august that demonstrates similar weather conditions, (20c and 20c)
based on average max temperature data from the World Meteorological Organization (WMO
2008) for Denmark and specifically Copenhagen that are depicted on Chart 2 of page 8.
Unfortunately relevant data for region Nordjylland were not available; however there is a
high relevance on the weather conditions between the two areas. At least 51% difference that
exists between July and August in average overnight stays from 1992 to 2007 is due to
influences not posed by weather conditions.

ATTRIBUTES OF SEASONALITY

Tress (2007) asserts that seasonality in tourism can be attributed to two groups of
factors, natural and institutional. Natural seasonality refers to temporal changes in natural
phenomena (). Institutional factors include social norms and practices based on ethnic,
cultural, religious, social and economic considerations and influenced by the number and
availability of holidays. Kessler in Bender et al. (2007) asserts that half of the population in
Germany is dependent on school holidays for planning their vacation. Getz and Nilsson
(2003) summarize that:

Climate or weather are generally held responsible for seasonal fluctuations in demand,
but social customs, and especially holiday periods, exacerbate the tendency for
summer-time peaks in the Northern Hemisphere and winter-time peaks in tropical
destinations. As well, seasonality can be influenced by business customs and
calendar effects such as special events.

SEASONALITY PROBLEMS

According to Getz & Nilsson (2003) extreme seasonal fluctuations of tourism demand
can cause the following problems:

1. High concentration on the high season that might lead to potentially unsatisfied
demand

2. Unemployment during the low season that increases welfare costs.

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3. Increased prices during the high season that affect consumers perception of value.

4. Inactivity of the local society during the low season.

5. Possible unemployment outbreak during the low season.

6. Unavailable services and facilities during the low season.

Koenig & Eberhard (2004) asserts that for the accommodation sector, especially where
serviced properties are concerned, the relatively high fixed costs make seasonality a
particularly important issue; and low variability, an extended main season, and a high
occupancy level are generally regarded as desirable goals. However climatic changes that
change dramatically may shape known habits in an entirely new way, according to Amelung
& Viner (2006):

Several studies that specifically targeted the Mediterranean region suggest that in the
future, the summer seasons climatic conditions will deteriorate in this region and
improve in western and northern Europe (currently the major source region of
Mediterranean tourists) as a result of human-induced climate change. In contrast,
conditions in autumn and spring (the shoulder seasons) are expected to improve in the
Mediterranean region.

THE SEASONAL AFFECTIVE DISORDER IN TOURISM

According to the U.S. National Library of Medicine (2008) Seasonal Affective Disorder
(SAD) is the state when people experience a serious mood change when the seasons change.
They may sleep too much, have little energy, and crave sweets and starchy foods. They
[patients] may also feel depressed. Respectively the American psychological association
(APA 2008) make recommendations about the cure of SAD asserting that many studies have
verified and refined the notion that light can be a potent healer for SAD sufferers, () The
now-standard treatment for SAD30 minutes of 10,000-lux, diffused, white fluorescent light
taken early in the morninghelps about half of SAD patients fully remit, regaining energy and
positive moods.

What does SAD has to do with tourism anyway? What about seasonality? Which by
definition according to Coccossis et al (2002: 5) is the increasing concentration of tourists,
in time and space (seasonality),[and] is the main cause of problems [related with the carrying

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capacity of a tourism destination] and this is why there is an attempt from policy makers to
spread these pressures through the tourist season. But why do people concentrate in time and
space? A significant part (approximately 60%) of all tourist activities depend on the natural
environment (availability of resources, characteristics, uniqueness, beauty, etc), while
approximately 40% of recreational and tourist activities are based on urban or cultural
elements. Shifting environmental conditions related to e.g. sunshine, can shape the mood
and desire of people for specific kinds of tourism activities.

A BRIGHTER APPROACH TO LIFE AND TOURISM

If the lack of sunlight causes SAD to people that can be cured even with artificial
lighting, then a great part from the 60% that is being mobilized by physical motives, might
just be looking for a brighter life experience if not sunny vacations. Even if it is very difficult
to control environmental characteristics like sunlight, there are still 40% of tourists that
would appreciate a brighter cultural and urban life.

Palang et al. (2007) explains that seasonality influences our daily activities in different
hidden ways more than we imagine. Expressions of seasonality surround us everywhere we
look: on streets, in shops, art galleries, newspapers, tourism brochures, poetry and songs, in
goods we buy. All these are potential battle fields that the war against seasonal affective
disorder or seasonality is taking place, consciously or unconsciously defining attractive
destinations over the unattractive ones. Kizos (2007) concludes that:

The attractiveness of an area is the image of the area for a group of people connected
in some way with it that affects their decisions for working or living in the area.
Attractiveness is a socially constructed concept and the social group for which its
estimation is attempted should always be included in its definition.

Attractiveness regarding a destination can account for peoples decisions to live and work
somewhere specific. After all summer workers are a result of seasonal tourist flows that take
place in the summer. () A significant part of the seasonal workers consist of tourists who
stay for a longer period of time and find low pay jobs for some weeks (ibid).

For host communities the economic, social and ecological consequences of high-peak
tourism phenomena in the one hand and off-peak underutilization of capacity on the other
hand is a severe problem (Tress 2007) and manifold fluctuations could be avoided if a
destination manages to develop a more attractive low season.

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Comparing SAD with seasonality in the tourism demand, let us say that we are the
psychiatrists and our patients are potential tourists, then, what is the cure for seasonality in
the tourism demand if the American psychological association suggests light therapy for
SAD? Maybe brighter destinations even in low-season, with vibrant life and businesses, more
outdoor activities, or outdoor aesthetics even when indoors, or even transparent
accommodation structures that let visitors undisturbed to enjoy the precious natural
illumination (even if scarce).

Businesses seem to recognize that individual actions alone will not address any
perceived problems of seasonality in the region largely because it is, in fact, region-
wide issue. Joint and co-ordinate marketing strategies among operators might well be
a feasible approach to mitigating seasonal fluctuations, but not all business and
operators are in agreement that seasonal fluctuation is a problem that is in need of
rectification. (Duval 2006)

This is what happens when the collective brain has to be stimulated. In that case,
powerful empirical research that can demonstrate to local entrepreneurs, how much money
seasonality actually costs them, would be an influential tool in order to get them onboard.

4 SEASONS BRANDING

How possible is it to mitigate the impacts of seasonality? A promotional campaign and

advertizing is something that probably has already been applied and may prove to be
inadequate to match the dimensions of this problem since seasonal tourism demand still
exists. A complete strategy which will serve as part of a matrix plan could bring better
results.

A useful tool is the concept of branding, which is considered to be an experience

compatible marketing advancement and also incorporates the elements of a strategic
marketing approach. According to Pritchard & Morgan (2001: 216):

In marketing, a brand is understood to represent a unique combination of product

characteristics and added values, both functional and non-functional, which have
taken on a relevant meaning which is inextricably linked to that brand, awareness of
which might be conscious or intuitive.

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A brand name initially means nothing, it is only an empty vessel into which you poor
brand equity by means of marketing (ibid). Branding is the value that makes a simple
product an experience, and this is even more important in the context of tourism since the
actual product is experiences from the very birth of the tourism industry. Moreover branding
can be a conscious procedure or even a sub-conscious result that adds experience quality on
the product.

THY NATIONAL PARK CENTRE

A possible need for a structure that will be used as the Thy national park centre may be
realized soon. In that case many proposals made throughout this study can be a useful
contribution. As far as it concerns the structure itself, some basic principles can form the
guiding lines. More specifically:

Multipurpose Potential: The size of the structure should be equilibrated to an extend

that ensures the constructions capacity to serve all purposes that could be regarded as
exploitation possibilities and at the same time to constitute a relatively low operational and
maintenance cost that will enable the easier all year-round utilization of the investment.
Possible exploitation possibilities might include: Educational events, culinary festivals, small
conferences, offices and an information bureau. A structure that is not bound to certain
exploitation plans ensures adoptability to future evolvements and a lower risk for the viability
of the investment itself.

Sustainability and autonomy: the passive house construction concept ensures an ideal
indoor climate with good insulation techniques rather that the use of air conditioners and
heaters, achieving low energy consumption (Passivhaustagung 2008). Autonomous energy
supply can be achieved through the use of small vertical wind/solar cell turbines that provide
not only high efficiency but also discreet and compact design like the Bluenergy Solar-Wind-
Turbine (BSWT) which is constructed by the Bluenergy AG worldwide (Bluenergy 2008a):

BSWT is a vertical wind turbine based on sailing engineering. The wind rotor is
rotated by two spiral-formed vanes. For best performance, these vanes are covered in
solar cells, so that sun and wind produce electricity as one element. The BSWT
installation costs relatively little, produces no noise or significant shadowing, can be
easily maintained from ground level, and is an attractive addition to any home.

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Bluenergy Solar-Wind-Turbine. Picture Source: Bluenergy 2008 Through Innovation

As stated on the part about the seasonal affective disorder, all natural illumination is very
important for the human mental well being and should not be disrupted through over
engineered constructions that assimilate the aesthetics of a cement cube. A shape that can be
used for construction and assures the maximum solar gain is the dome hemisphere. The dome
construction shape provides the maximum possible surface that could be constructed with
see-through photovoltaic glass (Suntech 2008) that generates renewable clean energy for
the needs of the centre and at the same time provides 89.8 heat cut, 99.9 UV cut and enables
lighting management inside the structure. According to Suntech Corporation (2008):

Suntech See Thru (previously known as Photovol Glass) is a revolutionary new type
of photovoltaic glazing. It is a solar panel with a unique semitransparent finish,
similar to tinted glass. Designed in part by architects, See Thru is ideal for use in
curtain walls, skylights, canopies, atriums, and other vertical or sloped glazed
surfaces. Based on amorphous silicon photovoltaic technology, See Thru is the perfect
material for both light management and power generation.

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See thru PV glass used as a skylight. Source: Sunlight 2008

Moreover Bluenergy AG (2008b) has developed a glass material called electro chromatic
glass that enables the reduction of unwanted heat transfer through the utilized surfaces,
achieving reduced energy consumption from air conditioners. The same specialized glass
provides the ability for transparency regulation with a dimmer controller that can be operated
manually or automatically from 100% down to 15% (ibid).

Electro chromatic glass Source: Bluenergy 2008

The mental conception of transparency and equilibrium between man and nature can be
realized on an innovative structure that implements natural lighting management and
renewable energy autonomy. A dome that could be regarded as prototype exists by the name
of Biodome in Nordic Folkecenter just 30 kilometers away from the national park. According
to Nordic Folkecenter (2008):

The Biodome is a 5/8 th sphere, containing three floors. The diameter at the base is
14.4 m. and the widest diameter is 15. 8m on the first floor. The frame is made of
aluminum and is covered with triple wall polycarbonate glazing. The state of the art
insulation allows little heat loss. The Biodome takes full advantage of all positions of
the sun, maximizing solar gain.

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The specific Structure prototype could be used for any purpose including accommodation,
offices, events, since the inside can be arranged in floors and also adopt to any need easily,
considering that inner walls and columns are not necessary in order to support the structure,
allowing the creativity and fantasy of the decorator to shape the inside in countless ways.
Most of all it is an innovative approach that will be recognized as a landmark

Since sustainability has its social dimension also, an important function that the national
park center could provide would be to become a meeting place between locals and visitors
(Hall 2000) with the use of various pretexts such as, periodical festivities aiming to promote
local culinary products etc.

Suggested names for the center of the national park are all the combinations that project:

A multipurpose character that is not bound to certain exploitation plans and

provides the necessary space for future adaptations

The unique natural characteristics that characterize the location in all four seasons,
in order to enable the identification as a whole year destination.

A geographical referential element that is recognized internationally and

nationally in order to make the identification of the centre memorable to everyone

One initial proposal that could be debated would be the Four Seasons Scandinavian
Dome.

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The outside of the Biodome Source: Nordic Folkecenter 2008

The Inside of the Biodome Source: Nordic Folkecenter 2008

A bottom-up view from the inside of the Biodome Source: Nordic Folkecenter 2008

HUMAN RESOURCE MANAGEMENT

In order to approach the HRM factor in the context of tourism it is a necessary
prerequisite to define the aims and definition of contemporary HRM.

Human resource management is defined as a strategic and coherent approach to the

management of organizations most valued assets - the people working there who

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individually and collectively contribute to the achievement of its objectives.

(Armstrong 2006: 3)

That definition of HRM depicts clearly the realization of value that people induce into
modern organizations, both as individuals and as collective entities. It is equally important
together with this definition of HRM to include the aims of HRM that according to
Armstrong (2006:8) are summarized in the seven areas below.

ORGANIZATIONAL EFFECTIVENESS
HRM strategies are developed in order to advance the effectiveness of an organization by
implementing policies in the areas that HRM objectives are defined. Talent management is
one of the factors with the most potential to advance effectiveness, which according to
Armstrong (2006: 390) is the use of an integrated set of activities to ensure that the
organization attracts, retains, motivates and develops the talented people it needs now and in
the future. The aim is to secure the flow of talent, bearing in mind that talent is a major
corporate resource. The concept of talent management reveals a greater propensity towards
the human value which cannot be replaced by technological advancements.

HUMAN CAPITAL MANAGEMENT

Armstrong (2006: 9) explains that The process of human capital management (HCM)
() is closely associated with human resource management. However, the focus of HCM is
more on the use of metrics (measurements of HR and people performance) as a means of
providing guidance on people management strategy and practice. And I it is made clear that
that in the process of attributing more and more value to the human value, that HCM
constitute a more strict approach.

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KNOWLEDGE MANAGEMENT
Knowledge management is any process or practice of creating, acquiring, capturing,
sharing and using knowledge, wherever it resides, to enhance learning and performance in
organizations (Scarborough et al, 1999). Moreover Gottschalk (2006: 28) asserts that
Knowledge is an important organizational resource. Unlike other inert organizational
resources, the application of existing knowledge has the potential to generate new knowledge.
Not only can knowledge be replenished in use, it can also be combined and recombined to
generate new knowledge.

REWARD MANAGEMENT
According to Armstrong (2004: 3) reward management is concerned with the
formulation and implementation of strategies and policies that aim to reward people fairly,
equitably and consistently in accordance with their value to the organization. The
performance of organizations can be improved only by acknowledging the value of their
employees and providing incentives for self improvement and evolvement.

EMPLOYEE RELATIONS
The possibility that a boss might be incompetent, give unclear instructions, blame others,
take undue credit, be high-strung and hyper, be disorganized, act like a power mad tyrant, or
any combination of such characteristics (Graham 2005) has to be avoided and that concept
can be extended also to all sorts of difficult employees, some with multiple reasons for being
difficult. For example: () the bully, the know-it-all, the busybody and gossip, the
backstabber, the incompetent, the sensitive soul, the emotional wreck, the slow poke, and the
poor communicator (Graham 2007).

MEETING DIVERSE NEEDS

According to Armstrong (2006) HRM aims to develop and implement policies that
balance and adapt to the needs of its stakeholders and provide for the management of a
diverse workforce, taking into account individual and group differences in employment,
personal needs, work style and aspirations and the provision of equal opportunities for all.
All these needs that have to be met require a rigorous management that instantly recognizes
and monitors the needs of all actors.

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BRIDGING THE GAP BETWEEN RHETORIC AND REALITY

Armstrong (2006) concludes that there is a wide gap between the sort of rhetoric
expressed above and reality. () An overarching aim of HRM is to bridge this gap by
making every attempt to ensure that aspirations are translated into sustained and effective
action. This can be a reminder that the realization of strategies that actually demonstrate
results is an integrated part of the generation of a good idea.

HRM IN THE CONTEXT OF TOURISM

The International Standard Industrial Classification of all Economic Activities, Revision
4, (ISIC Rev. 4) that it is developed by the United Nations Statistics Division (UNSD 2008)
is a standard classification of economic activities arranged so that entities can be classified
according to the activity they carry out. A section labeled Accommodation and food service
activities is assigned on ISIC Rev. 4 aiming to specify economic activities that account to
tourism (excluding the transportation sector). A short description of what is, and what is not,
included in the Accommodation and food service activities sector is provided by table 1
below. The composition of this section provide a clear outlook of the service orientation of
the labor force that it is occupied in the tourism sector, since it is very hard to calculate the
contribution of the transportation sector that includes many activities that do not account to
tourism along with a significant amount of labor force that transportations occupy.

Table 1 ISIC Rev. 4 Section I - Accommodation and food service activities

Division: 55 - Accommodation Division: 56 - Food and beverage service

activities

This division includes the provision of short-
stay accommodation for visitors and other
travelers. Also included is the provision of
longer-term accommodation for students,
workers and similar individuals. Some units
may provide only accommodation while
others provide a combination of
This division includes food and beverage
serving activities providing complete meals
or drinks fit for immediate consumption,
whether in traditional restaurants, self-service
or take-away restaurants, whether as
permanent or temporary stands with or
without seating. Decisive is the fact that

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accommodation, meals and/or recreational meals fit for immediate consumption are
facilities. offered, not the kind of facility providing
them.

This division excludes activities related to the Excluded is the production of meals not fit
provision of long-term primary residences in
facilities such as apartments typically leased
on a monthly or annual basis classified in
Real Estate (section L).
for immediate consumption or not planned to
be consumed immediately or of prepared
food which is not considered to be a meal
(see divisions 10: Manufacture of food
products and 11: Manufacture of beverages).
Also excluded is the sale of not self-
manufactured food that is not considered to
be a meal or of meals that are not fit for
immediate consumption (see section G:
Wholesale and retail trade; ...).

Source: United Nations Statistics Division 2008

According to Eurostat (2007) tourism accounts for 4% of the Communitys GDP, with
about 2 million enterprises employing some 4% of the total labor force (representing
approximately 8 million jobs).when the connections with other sectors are taken into account,
tourism's contribution to GDP is estimated to be around 11% and it provides employment for
more than 12% of the labor force (24 million jobs) The previously mentioned seven aims of
HRM can be easily applied in the tourism industry if the idiomorphic peculiarities that exist
within this dynamic economical sector are taken into consideration. However service
industries have long been disparaged as sources of low-skill, low-wage jobs, and they often
are characterized as part of a stagnant sector marked by low productivity growth and only
limited opportunities for innovation (Triplett 2004). Moreover according to Hoque (1999):

It is becoming increasingly important for the future validity of HRM to demonstrate

that HRM theory, developed within a manufacturing sector production line
paradigm, is also relevant within the service sectors of the economy. What future is

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there for HRM as a theory if it is not seen in the services, within which almost 76 per
cent of the working population are employed, as a credible approach.

A development scenario by Carter (2004) that emphasize in the role of the labor force on
a tourism destination estimates that economic benefits to the local community through
employment may be diminished through increasingly replaced local investment and profit
accounted to outsiders accompanied with increasing imports of labor force in order to fuel the
development needs, resulting in a leakage of financial input out of the local community.
Ultimately, revenue to the local community decreases, unless government investment in
local community infrastructure increases through reinvestment of funds received through
taxation, for example, of the non-locals who are benefiting from tourism success(ibid).

THE SIGNIFICANCE OF SMALL MEDIUM ENTERPRISES IN TOURISM

According to Statistics Denmark (2008) The number of hotels and restaurants in Denmark
for 2005 was 13620 and the total full time employees occupied on these enterprises were
40603, that constitutes an average of almost 3 employees in every hotel and restaurant (Table
2) Indicating that the most common nature of enterprises existing on the tourism sector in
Denmark is the small and medium enterprises (SMEs). These enterprises produce a variety
of products and services and have the potential to generate a significant amount of work
places. That becomes more problematic to destinations that have fewer months available to
produce revenue that exceeds the whole year cost of ownership and maintenance of a small-
medium company. The possible inactivity of SMEs due to seasonality therefore entails the
danger to ignite unemployment or less employment.

Table 2 Number of Hotels, Restaurants and Number of Number of employees (in

Employees for 2005 enterprises full-time persons)

5500 Hotels and restaurants 2005 13620 40603

Average employees per enterprise 2,98
Source: Statistics Denmark 2008

SMEs themselves do not only serve as the producers of necessary products, services and
work places for the demand that emerges from tourism but also as a point of interest that
actually makes a destination more vibrant and appealing for visitors. Moreover despite the
viability issues that seasonality introduces for the SMEs there are serious considerations

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about the sustainability of seasonal development since the overall carrying capacity of the
destination is stressed only in the high season implying that either the destination has to
develop further, in order to handle the high season or that the carrying capacity limits of the
destination are exceeded in the high season.

Development in terms of tourism can be achieved with the implementation of tourism

policy that uses instruments on the right combination and timing so they can be easily
absorbed by the SMEs that constitute the entrepreneurial backbone of tourism destinations.

An important tourism policy instrument that has the potential to promote collaboration
between the SMEs is the development of organizational networks. Networking which refers
to a wide range of cooperative behavior between otherwise competing organizations linked
through economic and social relationships and transactions (Hall 2000: 175). A development
network can be the venue that the interests of all those involved in the development process
are coming together. Organizational networks moreover can contribute to evolvement of
peripheral areas according to Hall (2000):

Current Government interest in networking stems from the view that the networked
firm appears to be an important component of both successful national economies and
of highly performing regional economies () and may offer considerable potential to
assist in cushioning the effects of economic restructuring particularly in rural and
peripheral areas.

Another valuable incentive that can be used in order to encourage development is

knowledge. This is confirmed more and more by the need of abilities associated with
adaptation in todays fast changing economies are required. Moreover the total reform that
the science of information technology has come to cause to the availability of information
and even more to our lives is making knowledge a major asset. According to Jensen et al.
(2005) the two modes of learning are distinguished to the STI-mode (Science, Technology,
Innovation) [which] has its roots in scientific knowledge and its primary aim is produce
explicit and codified knowledge while the DUI-mode (Learning by Doing Using and
Interacting) refers to learning resulting in competence building often with tacit elements It is
clear that these two modes of learning that produce knowledge are on the opposite ends but as
Jensen et al. (2005: 2) explains that balancing the two strategies and finding ways to make

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 Development Through Innovation

sure that they support each other is the most important and difficult task of knowledge
management.

The current era may be characterized as a learning economy where the speed of
competence building and creation of new forms of tacit knowledge is crucial for economic
success (ibid). Both forms of knowledge can be integrated to a development framework and
disseminated to small, medium and why not even large enterprises and entrepreneurs that
may already have access to relevant resources. Even more knowledge on the right blend
works as a catalyst and raises the confidence that is needed in order to go through the painful
still necessary procedure of adaptation into a rapidly changing environment that enterprises
operate. Uncertainty and insecurity in high levels may easily lead to the stagnation of
development.

The availability of financial incentives might be much more restricted that the
availability of organizational networking which has to be maintained since it is established
and providing knowledge that since a link with an academic actor is established it has to be
maintained in order to ensure the participation on the framework.

It is becoming gradually understood that policy instruments like organizational

networking and knowledge have to be established from the beginning and maintained, on the
contrary financial incentives have to be initiated and disseminated on the system in a variable
sequence given their relative scarcity. Ideal points for the initiation of financial incentives
are:

1. The beginning, in order to cope with possible hesitation towards the grasping of
entrepreneurial opportunities and trigger the first investments.

2. When the first signs of deceleration start to appear in order to prevent possibly
expected negative forthcomings.

3. When stagnation occurs, in order to fuel the propensity for development again and
place the process back online.

4. The diffusion of financial resources could be granted as a reward for outstanding

performance or innovative initiations.

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 Development Through Innovation

5. As a steering wheel, in order to direct investments into certain forms of development

that benefits the destination as a whole and do not receive enough interest from
investors.

ENTREPRENEURIAL EXPERIENCE TOURISM

XP( rience)
ECONOMY

According to Pine & Gilmore (1999) the evolution of economic value is progressing from:

Commodities, referring to raw materials that people extract from their environment
that afterwards are being processed by companies in order to become suitable for
distribution and finally stored before made available to markets. Commodities are
mostly fungible and sold largely due to the low differentiation that characterizes their
raw nature.

Goods, composed from commodities into a tangible form, made mostly by companies
that can be stored before sold to anonymous consumers in big quantities through
many different ways e.g. on the market, by order. Goods are subjected to production
and value-adding processes that are accumulated in their price resulting to an
increased value compared with the raw commodities that goods are made of.

Services derived from goods that service providers use in order to sell them
customized upon request of eponymous clients. Services are intangible; something
that often makes impossible the storage in bulk in contrast to goods and commodities.
Services have an added value compared to the goods that are being used through the
production process due mostly to the labor cost that is being added to the used goods
that consumers are willing to pay for, in order to receive the service.

Experiences are unique memorable events that companies compose from services and
goods and finally provide to individuals through their participation that varies in
density and character, Experiences are the latest evolvement of economic value that is
able to achieve the highest added value compared to goods and services because the
actual value that experiences represent is totally subjective in contrast with e.g. the
labor cost of services that gradually started to be measured objectively by hours spent,
skill etc.

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 Development Through Innovation

Pine & Gilmore (1999: 12) explains that Just as people have cut back on goods to spend
more money on services, now they also scrutinize the time and money they spent on services
to make way for more memorable-and more highly valued-experiences.

Commodities =) Goods =) Services =) Experience

Economic Offering Commodities Goods Services Experiences

Economy Agrarian Industrial Service Experience
Economic Function Extract Make Deliver Stage
Nature of Offering Fungible Tangible Intangible Memorable
Key Attribute Natural Standardized Customized Personal
Inventoried after Delivered on Revealed over a
Method of Supply Stored in bulk
production demand duration
Seller Trader Manufacturer Provider Stager
Buyer Market User Client Guest
Factors of Demand Characteristics Features Benefits Sensations
Table 2 Economic Distinctions. Source: Pine and Gilmore 1998

Pine and Gilmore (1998: 102) identifies the following five key experience-design
principles:

1. Theme the experience referring to the creation of thematic wrappings into

services,

2. Harmonize impressions with positive cues encouraging the careful underlying

design of every detail,

3. Eliminate negative cues implying that the The easiest way to turn a service into an
experience is to provide poor service thus creating a memorable encounter of the
unpleasant kind.

4. Mix in memorabilia summarizing into that service providers that encounter demand
for souvenirs have achieved the transformation of the service to a memorable
experience.

5. Engage all five senses. Explained as the sensory stimulants that accompany
an experience should support and enhance its theme. The more senses an
experience engages the more effective and memorable it can be(ibid).

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 Development Through Innovation

All the above experience creation techniques that Pine and Gilmore suggests have come
to achieve high recognition and potential. Especially the fifth element that which may
compose the sixth sense itself, experiences.

EXPERIENCE IS THE 6TH SENSE?

1. Sight is being stimulated through the images that people view from their environment,
through changes to the ambient illumination and mostly the perception of light,
composing a brand new reality that surrounds the tourist which finally contributes to
the memory of the individual by the creation of experiences.

2. Hearing is the receiving sounds that are generated from our environment and have the
ability even to change the psychological mood of people by the example of music,
resulting on the invisible link that connects us with our environment and shapes the
creation of our experiences.

3. Taste is the sense by which people are able to enjoy the food and beverages that are
created from our traditions and builds a new vast spectrum of sensory excitement that
constitutes an added value of great importance to goods otherwise ordinary. People
associate culinary festivities with many memorable social activities that often result to
memorable experiences.

4. Smell links people with their environment and contributes to the way we perceive and
recognize places, things, even people by a certain perfume they wear etc. assisting our
memory with associations made with everything that surrounds us, even intervening
with emotions, creating negative or positive reactions e.g. the positive mood that a
session of aromatherapy creates as an experience.

5. Touch gives us the ability to feel everything we perceive with our senses. Very often
people feel the need to sense with their touch something that excites them
contributing to the creation of a complete experience e.g. the desire that many people
feel when they visit Parthenon to touch the ancient marble.

6. Experiences. All our 5 senses are means that shape our perception of everything that
surrounds us and actually built our 6th sense which is the experiences that reside inside
our memory. Our experiences are by their own a sense that shapes our perception of
reality by the preconceptions that we carry within and derive from our personal
experiences.

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Destination management organizations can be creative in order to become more visible

and attractive to visitors through injections of innovation. Of course the option to invest in
aggressive marketing is always open, together with the risk of triggering negative reactions to
possible visitors.

More or less the efforts of a tourism destination in terms of tourism development are
directed into the supply of accommodation, food & beverage, tourism activities, development
of attractions and so on. This tourism oriented supply poses the risk of placing the local
society out of focus making that form of development socially unsustainable and lacking the
authentic characteristics of an experience inside the real social life of a culture that a
permanent resident experiences every single day and a curious explorer is looking for.

Figure 1 The Four Realms of an Experience. Source: Pine and Gilmore 1998

Pine and Gilmore describes the four realms of an experience (Entertainment, Educational,
Esthetic, and Escapist) in dependence with two dimensions as depicted in Figure 1. The
horizontal dimension ranges from the participation of the spectator to the participation of the
performer. The vertical dimension ranges according to the utilization of the mind, when
achieving absorption, and the senses when achieving immersion. On the center of the two
axes is the point that engages equally body and mind through equilibrated participation, and
this is where the maximum creation of experience resides, the point that this study is referring
to, as the 6th sense.

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 Development Through Innovation

FROM SERVICES TO EXPERIENCES AND FROM SERVICING TOURISM TO

EXPERIENCING LIFE
The target of a reach experience that resides on the 6th sense can be achieved with
individualized experiences that are tailored to the needs of any individual. Instead of having a
scientifically skilled team that determines, the required experience needs of any individual, an
offering of a wide range of real experiences into real living and working environments may
pave the way to the ultimate experience that dominates body, mind and senses.

Many of us often said: I would give anything to live the life I have always dreamed of,
even if it is only for a while. And that sounds as utopian as making a wish to travel back in
time. The difference exists on the fact that traveling back in time is impossible (?) but living
the life that you have always dreamed of, even for a while (considering ethical and practical
limitations) can be possible.

How would it be if what a destination has to offers is a real experience inside the
destinations culture and society just like locals experience it? How would it be to work and
live together with the local population of a destination even for a short period o time? How
would it be to transfer the field of action of tourism from the development of seasonal
tourism businesses into normal every day companies and houses? How would it be for a
destination to invest in the local life structures and just become the mediate link to enable
visitors to enjoy that reality also?

Tourists can have access to most of the social structures depending on their cravings to
explore rather just to walk trough and experience only what can be seen on the surface.
However the experience to work on a destination is not easily accessible to tourists due to
many difficulties of social nature that only few people can overcome e.g. skill needs,
language, short period of stay, bureaucratic procedures. These difficulties finally extend to
economical drawbacks that might discourage any ambitious explorers.

On the other hand how many potential tourists have dreamed about escaping the everyday
routine not just by going for vacations but rather living another life even for a short period of
time? One of the most important ingredients of our lives that consumes at least 8 hours out of
one working day of our life is the work we do, the same parameter that defines the available
amount of time for holidays also and therefore our availability for tourism. How many of us
have thought about: How would it be if I quit my work on the office and try pursuing the work

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that I have always wanted to do since I was a child? How would it be if I would become a
barman, a restaurant owner, a hotel manager assistant etc. even for a few days?

Such demand could be matched with small-medium companies that stay closed on the
low season in many destinations. That could be a way for small-medium companies to stay
open and produce satisfactory revenue off-season, by providing the entrepreneurial
experience the actual employment of tourist or even by leasing small medium companies to
tourists willing to pay for the experience of e.g. how it is to be a hotel owner in autumn?

An existing legal framework for leasing that secure the interests of both parties and
excludes immigration of workforce (if that is desired) can make that possible. After all, this
entire concept has the potential to be aimed on tourists with certain revenue levels, since it is
comprised from experiences that can be priced subjectively.

WHAT TYPE OF ENTREPRENEURIAL EXPERIENCE WOULD LIKE TO ADD TO YOUR

CV?

The guidelines of human resource management, four season strategy and experience
economy can be composed in order to produce the experiences that a certain destination has
to offer in countless ways, and as referred to, above, with the ability to focus on certain
typologies of tourists depending on the occupations used for these experiences that may range
from jobs for unskilled individuals to highly demanding occupation that provide also
enterprises the ability to explore the labor market in a new way, ensuring that the desired
tourist target group can be approached. Some examples:

This winter you could spent your This autumn you could become a
vacations as a hotel manager restaurant owner
assistant

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 Development Through Innovation

CONCLUSIONS
Development in the area inside the park is under restrictions; instead the area around
the national park can be developed in terms of small medium companies that would provide
accommodation services and products. The establishment of collaboration networks and the
diffusion of all forms of knowledge from the public actors together with the distribution of
available funds in the correct timing are essential for a successful development initiation.

The concepts and suggestions presented in this study aim to initiate sustainable
development by taking into consideration the economical, social, and environmental
dimensions of development and at the same time face the challenges that competition from
other destinations and high seasonality may pose. These challenges can be met through the
establishment of competitive advantages that innovative approaches can provide through the
implementation of whole-year development.

The proposals that this study presents and elaborates summarize on the concept of
Entrepreneurial Experience tourism that is being revealed gradually and it will hopefully be
the key for the solution of the problem that guided this quest. Further developing on the tools
provided by that paper is an exciting innovative challenge. Appropriate implementation,
monitoring and revision when necessary would make the difference.

Good luck Thy!

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 Development Through Innovation

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ANNEX 1
M/Y 1992 1993 1994 1995 1996 1997 1998 1999
January 66929 76297 75761 78634 80978 86483 87422 85417
February 105175 115009 114093 119988 128504 138480 148192 140674
March 126250 155072 194410 183718 181310 234233 202111 215061
April 267060 267636 258383 297238 280413 228190 317028 305865
May 346533 397955 412953 369577 392458 407541 422712 437687
June 620681 586837 563767 600104 580885 592762 610907 568518
July 1980993 1766803 1762329 1790318 1744866 1770530 1645907 1679536
August 867829 759808 895638 866452 829579 956570 900636 890314
September 269646 260458 269398 275532 283998 307229 315512 307934
October 199232 201346 190816 197854 234566 241775 259074 234734
November 117517 134439 129002 127877 149937 148044 156553 157242
December 110769 123121 124823 132037 130575 136008 144001 145126
Table 1 Overnight stays for all types of accommodation in region Nordjylland by month and year from 1992 to
1999. Source: Statistics Denmark 2008
Notes: Holiday houses not geographical distributed before 2007 and not monthly distributed before 2004.
Youth Hostels first included in 1998

M/Y 2000 2001 2002 2003 2004 2005 2006 2007

January 80640 76838 81901 78201 80277 84167 73815 90603
February 142557 139604 157480 143217 150278 163698 146555 147131
March 198440 205136 266893 193827 184359 252398 188117 207705
April 345888 327408 282127 351664 350105 312756 359365 354862
May 367564 391481 438288 430566 454953 432720 419169 484548
June 627276 576609 554845 598200 570205 556145 569737 591503
155862 162173
July 2 5 1658770 1640735 1610560 1535099 1579100 1486021
August 804693 786072 792968 877784 864450 895950 917178 910669
September 318463 319029 320679 345298 331382 347917 371326 365292
October 225612 242016 232840 218076 221097 236883 229552 233987
November 146628 148327 141770 139538 140494 134419 145978 154522
December 131414 131541 131025 135175 150395 155892 153912 162305
Table 2 Table 1 Overnight stays for all types of accommodation in region Nordjylland by month and year from
1992 to 1999. Source: Statistics Denmark 2008
Notes: Holiday houses not geographical distributed before 2007 and not monthly distributed before 2004.
Youth Hostels first included in 1998

ANNEX 2

Calculations of the three suggested measures of seasonality from Getz & Nilsson
Peak Seasons Percentage (July- August) 50% 1676995+863537=2540532/5080199*100=50%

Highest to Lowest Season Ratio(July-August/December-February) > 4 to 1 1676995+863537=2540532 & 137382+80273+137540=355195 &

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2540532/355195= 7,152

Low Seasons Extend (January-May+September-December /July) 1676995/2539666= 0,66*100=66%

Average overnight stays for each month from 1992 to 2007

January February March April May June July August September October November December Total

80273 137540 199315 306624 412919 585561 1676995 863537 313068 224966 142018 137382 5080199

36