Event Management in Wine Tourism

Event management in Wine Tourism Oriol Miralbell Izard [email_address] January, 25, 2009

Contents Wine tourism and cultural tourism. The case study of Catalonia Dynamics in the Wine Regions The cultural tourism event Designing and managing wine tourism events Conclusions and recommendations

Wine tourism as a complementary offer in cultural tourism The leading position of Spain and of Catalonia as tourism destinations is an asset to use in developing wine tourism Looking to elaborate differentiation strategies using a complementary offer to the main attractions based on the use of cultural heritage and traditions in tourism. In the last decades, cultural tourism events are among the preferred elements to be integrated with strength in tourism offer in Catalonia. Research done in 2007 by Francesc González and Oriol Miralbell – UOC

Tourism in Catalonia. Some figures International Tourists to Catalonia and Spain in 2007 Catalonia¹ Spain² Country # (thousands) Rank # (thousands) Rank France 4.275 1 9.319 3 Germany 1.443 4 10.046 2 Belgium and Netherlands 1.455 3 4.127 4 Switzerland 350 8 1.388 8 Italy 1.304 5 3.634 5 UK 2.161 2 16.271 1 Scandinavia 585 7 3.450 6 Russia 255 9 445 9 US and Japan 706 6 1.490 7 Souce: ¹ - Turisme de Catalunya i Institut d'Estadística de Catalunya, a part ir de les dades de Frontur de l'IET. ² - Frontur de l'IET

Tourism in Catalonia. Some figures: cultural offer

Cultural tourism leads in tourist’s evaluation

Wine tourism has an opportunity inside cultural tourism

Perception of Catalonia as destination Beautiful, Cultural and Sunny

Wine tourism as a complementary offer in cultural tourism Wine tourism cannot be seen as a mere activity in the wineries or in the wine cellars. There exist specific assets that have to be integrated. These assets need to make from the experience in the wine regions a complete experience of senses . These assets are: Natural heritage – nature and landscape Cultural heritage – architecture, monuments and traditions Communications and proximity to strategic areas Lifestyle, society and habits Crafts, artisans and artists Leisure, active tourism and ecotourism

Wine tourism as a complementary offer in cultural tourism Wine tourism needs dynamics that can cohesion the spread cellars to make visible the uniqueness of the wine region and build an identity as a tourist destination. These dynamics have in the organization of events a trait of union

The events as a phenomenon of tourism and leisure A recognized definition of events: “ a transient and one-time or infrequently occurring event outside the normal program or activities of the sponsoring or organizational body and, for the guest , an opportunity for a leisure , social or cultural experience outside the normal range of choices or beyond everyday experience ” (Getz, 1994)‏

Two approaches to think when designing events Events combine two approaches : Socializing approach ( oriented towards the local community )‏ Festival approach ( oriented towards the visitors and marketing )‏ Each dimension affords different arguments that foster the creation of events: Socializing approach Festival approach Strategic re-positioning of destinations based on the exhibition of heritage and traditions Dissolution of the shift between exclusive culture and popular culture for consumption Festivals and heritage used as social identity vs. globalization Reduced organizacional costs (grant, support of voluntaries, temporary...) ‏ Appropriate for present consumption dynamics ( short breaks ) ‏

Lessons to learn and opportunities of present distribution of events Geographical distribution of events (González, 2006 ): Fast grow Presence on the hole territory Concentrated in tourist areas and in Barcelona Demand from urban areas and proximity (Catalonia as a functional area for leisure)‏ Remarkable position of popular culture as a theme (with differences depending on urban or rural area)‏ Seasonal distribution during the year Important role of local government in promotion Low use of ITC in distribution and marketing Distribution of events after municipality, 2005 Source: González, 2006

Profiles of events Topic of events Main topics : Festivals, traditional and popular events, and musical events High diversification : Diversification strategies of destinations (creation of additional supply and new products for active demand)‏ Old tradition in celebrating festivals and especial recover after the 1980s Main topic event’s distribution, 2007 100,00 Total 4,02 Sport events 12,75 Gastronomy 7,04 Specialized exhibitions 11,74 Market or artisans fair 21,14 Popular festival 13,08 Entertainment 5,36 Theater festival 24,83 Concert or music festival % Source: González, 2006

Time distribution 2) Seasonality) There's a trend to organize events according to the patterns of frequency of visitors.

Time scale & dimension 2) Duration and dimension (# visitors)‏ Small events with short duration , taking place every year since the 1980-1990s tending to augment in the last years. 76,4 Continuous organization (every year) ‏ 28,1 Editions starting after 1997 67,1 Duration < 2 days 13,6 Dimension (> 50.000 visitors) ‏ % Indicator

Managing trends 3) Management * Low budgets (42% <15.000€) * Expenses most for functioning rather than promotion and HR * Low professional profile of management structure , strong amateur profile and low capacity to generate benefits (> 50% do not have benefits or have very little) * Main goals are socializing (66%) rather than touristic (34%) * Lack of coordination and networking . Trends: act independently and isolated competing directly with other events.

Publicity & selling 4) Marketing * Low use of distribution channels * More extended use of promotional channels * Low use of the traditional means of tourism in both cases Use of promotion channels, 2007 100,00 100,00 100,00 100,00 100,00 100,00 100,00 100,00 % total 75,29 84,41 95,44 4,18 61,60 17,87 14,07 20,53 % no 24,71 15,59 4,56 95,82 38,40 82,13 85,93 79,47 % yes Promotion events Specialized exhibitions Cell phone Internet (web) ‏ Specialized journals Daily Newspapers Radio TV Font. Elaboració pròpia Distribution channels of events, 2007 100,00 100,00 100,00 % Total 3,04 3,04 3,04 % free 93,54 42,97 63,12 % no 3,42 53,99 33,84 % yes Travel Agents (packages) ‏ Booking systems Official distributors (Servicaixa…) ‏

R o I (?) 5) Economical impact (qualitative results based on perceptions of interviewed)‏ * Seems evident the beneficial effect (68% of events have a great impact on hospitality and 78% on restaurants)‏ * Direct link between the capacity to generate economic impact and getting profit, and the presence of tourism * The events with a structured and professional management and a solid promotion and professional organization attract more tourists and generate a greater local impact .

Organization 6) Agents * Strong dependence on local governments ’ involvement to maintain and organize the events (82% become grants and financial support from local government) * Patronage is rare (11%), private financial support is more frequent (55%) Formes de finançament dels esdeveniments, 2007 100,00 Total 100,00 Total 1,90 No answer 0,00 No answer 42,59 No 88,59 No 55,51 Yes 11,41 Yes (%) Private support (%) Patronage Font: Elaboració pròpia

3 Models of events The resulting matrix shows 3 factors that may correspond to 3 models of event: 1) Socializing and with local participation 2) Touristic and professional 3) Discontinuous professional 14,210 18,492 23,319 % explained variance 1,279 1,664 2,099 Proper value 0.477 0,481 Obtaining economical profit -0,465 Budget > 50.000€ -0,736 Continuous / discontinuous event 0,737 Belonging to a network or circuit 0,811 Presence of more than 20% of tourists 0,676 Presence of foreign tourist 0,617 Participation of local citizens 0,649 Planned meetings 0,787 Participation or involvement of local government Factor #3 Factor #2 Factor #1 Associations

Opportunities The study confirms the idea that the events are excellent resources to design strategies for local development with tourism business It also shows that there exit (socializing) models that hardly may be assumed by tourism without a suffering a negative impact The most important factors to generate local development with tourism business are those related to attractiveness or market proximity and regional concentration Local government’s involvement is key to reach positive social impacts at a local scale.

Conclusions Recommendations for Wine Tourism Events: Events show great capacity to become attraction focus for visitors and to generate social and economic local impacts Though many events should not be target to tourism consume, and those which can be addressed to tourists should have a professional management team. Because of the probable increase of events in the future we suggest the criteria to act properly:

Conclusions Recommendations for Wine Tourism Events: Select event models that allow a correct repositioning supply strategy and attract visitors Minimize the negative effects before launching a tourism event strategy like: concentrated, small and fragmented supply, lack of cooperation and association of stakeholders, excessive role of local administration, different goals and interests between promoters, etc. Change structural weaknesses like: excessive concentration of demand, low percentage of tourists, seasonality, lack of professional management skills, lack of economical sustainability, insufficient creativity skills, and serial repetition of existing events.

Conclusions Recommendations for Wine Tourism Events: Involve local agents, tourism and wine industry to make the social and economical integration a warranty for sustainability and to create internal networks of knowledge and innovation Work in coordinated groups with other wine regions to share costs, gain economy of scales in promotion and in building a network of organizers of wine tourisem events. Be creative in integrating other expressions than gastronomy and music think on art exhibitions, theater and film festivals, etc. where wine and vineyards are the key subject.

Thank you Gràcies Oriol Miralbell Izard [email_address]

Event Management in Wine Tourism

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