Joint SWOT analysis of the Fehmarnbelt region Awakening growth destination Summary: The Fehmarnbelt region has a rich and diverse touristic product that holds the potential to be one of Europe’s most attractive growth destinations for both leisure and business tourism. Not only does the region encompass three different national states, it also spans many different sub-regions, each one with its own cultural hallmarks, natural beauties and competitive business clusters. The sea is the forces that has bound it all together - from Hamburg and Lübeck , over the region’s vast and beautiful coast lines to Copenhagen and Malmö. Soon also a modern infrastructure will bind the region further together, and unfold a big potential for growth. However, there is a risk that with the new tunnel, the region will become a transit corridor rather than an attractive tourist destination in itself. This analysis shows that there are major challenges that need to be addressed for the potential growth to unfold and for the region to become Northern Europe’s most attractive tourism destination. Reading instructions: This analysis offers first a descriptive summary of the different sub-regions, within the Fehmarnbelt region, followed by the actual SWOT analysis. This SWOT analysis is based on the five individual SWOT analyses. The SWOT analysis has been divided into four main clusters with the purpose of creating an overview of the main strategic opportunities and challenges the region faces. The opportunities and challenges are discussed subsequently. 1.0 Descriptive analysis From great metropolises …. The two metropolises in the region offer vibrant shopping areas, historic sites and an abundance of entertainment and cultural activities from musicals to culinary excellence. Both cities have experienced a boom in tourist arrivals since the beginning of 2000. Hamburg and the surrounding Metropol Region is one of the most diverse and economically competitive regions in Germany and Europe and is furthermore one of the most visited cities in Northern Europe. Copenhagen, although a major city, has a sense of ease to Key facts: Population: The Fehmarnbelt region 8.9 million; Hamburg 1.8 million; Copenhagen 0.5 million. International airports and flights: Hamburg: 135 international flights of which 6 are intercontinental Copenhagen: 140 international flights of which 24 are intercontinental 31 weekly flights between Hamburg and Copenhagen (summer period) Key developments: Hamburg: ‘Hafen city’, including Elbphilharmonie. Copenhagen: ‘Nordhavn’ city development, including new cruise terminal and new city circle metro line. Zealand: Costal tourism project e.g. Panorama cycling cross border route (Copenhagen -Berlin) and ‘Green regional food experience’ project. Scania:’Lund Science Village’ and new Convention Centre in Malmö. Top 10 attractions (no. of visitors 2011.): Tivoli garden (Cph.) 3,963,000 The people’s park (Sca.) 2,857,000 Dyrehavsbakken (Cph.) 2,500,000 Hansa Park (Sch.) 1,300,000 Zoo Copenhagen 1,152,000 Lund’s Cathedral (Sca.) 780,000 Lalandia Aqua dome (Zea.) 750,000 Dunker’s house of culture (Skå) 540,100 Alster & Harbor excurs. (Ha m) 539,000 Aquatic Center Fehmarn (Sch.) 480,000 Key source markets bednights 2011 (mm)*: Germany 1.928 Sweden 1.152 Norway 920 Denmark 878 Great Britain 765 The Netherlands 670 USA 554 China 145 Japan 134 *Ex. domestic bednights in the respective national areas Total bednights (Fehmarnbelt region) 58.8 mm. hereof 11.1 internationals bednights (19%) during 2011 Top 5 Events/festivals (no. of visitors): Hamburg DOM festival 10,900,000 Kieler Woche (Sch.) 3,000,000 Christmas market (Ham) 1,800,000 Harbor birthday (Ham) 1,800,000 Malmö Festival 1,400,000 1 everyday life, and the city has also repeatedly been rated the world's most livable city by the well-known business magazine “Monocle”. Water and green sustainability are key assets for both cities and the entire Fehmarnbelt region. With its ‘Hafen city’ project, Hamburg is literally expanding the city center into the sea, whilst Copenhagen is undergoing a similar exercise with its ‘Nordhavn’ city development project. Both cities are popular cruise destinations and have recently established new cruise terminals. When it comes to green development the whole region is among the global frontrunners – Hamburg with the Green Capital Award in 2011 and Copenhagen city with a goal to become CO2 neutral by 2025. … to wildlife and sprawling beaches In Schleswig Holstein, Germany’s northernmost state, the tourists have the choice between two coastlines: The coasts of the North and Baltic Sea with scenic lighthouses, proud sailing ships and green dikes tell everyone of the rich maritime history of the country. Seven islands, ten islets, historic towns and quaint villages invite you to explore and relax. The same is the case for the East Danish islands of Zealand, Møn and Lolland-Falster, which are characterized by picturesque towns, ancient history, water, nature and authentic experiences. It is a region full of contrasts. Cosy little towns give way to open spaces, woodlands, meadows and dramatic stretches of coastline on Stevns and Møn, where the white cliffs are up to 128 meters high. Scania (Skåne), the southernmost province of Sweden, is Sweden’s gateway to Europe and occupies a central position in Northern Europe, boasting rich, varied wildlife and an exciting cultural life. With three national parks, it is the ’nature-based playground’ for the surrounding regions. Scania is, furthermore, one of Europe's leading educational and scientific centers. 2 2.0 Joint SWOT analysis The SWOT analysis of the Fehmarnbelt region below is a summary of the 5 individual SWOT analyses of the Hamburg Metropolitan region, Schleswig Holstein region, Region Scania, The Capital region of Copenhagen and Region Zealand. Focus in the SWOT has been on joint strengths, weaknesses, opportunities and threats. These have subsequent have been divided into four main clusters: The tourism product/destination, Infrastructure, Financial/political issues and Inter/- intraregional issues. Internal analysis Strengths Weaknesses The tourism product/destination: The tourism product/destination: High diversity of recreational, active and High dependency on domestic/few source authentic tourism products markets Thousands of km coastline – many beach resorts High seasonality Rich cultural heritage (incl. UNESCO world Fragmentation of tourism products heritage attractions and sights) Low quality of accommodation (in some Cutting edge sustainability and green regions) development Weak international image as a tourism Attractive shopping metropolises destination Rich ‘maritime’ history and development ( e.g. Few internationally well-known landmarks ‘Hafen city’) Infrastructure: Booming cruise industry Lack of traffic and efficient infrastructure Strong position within event development between the Danish and German regions Safety - safe destinations Hamburg City airport - not an intercontinental Infrastructure: hub Good accessibility (CPH a main hub, Expensive direct flights between Hamburg and Öresundbridge) Copenhagen Inter- and intraregional issues: International cross border initiatives (e.g. international bicycle routes, Öresund event strategy) Geographical proximity within the Fehmarnbelt region Inter- and intraregional issues: Linguistic and cultural challenges “Mental” gab/distance Located on the outskirts of Europe Financial/political issues: Limited sponsor market for e.g. development of events External analysis Opportunities The tourism product/destination: Develop and package attractive clusters of tourism supply (e.g. Health/wellness tourism, cultural heritage, culinary tourism) Take advantage of the maritime history to create joint activities and to profile the region Use events and the existing knowledge to develop cross-border events Attract mores cruises Expand, upgrade and diversify the hotel capacity Expand/develop “Technical visits” (with a focus on sustainability) Threats The tourism product/destination: Closure of the Lübeck regional airport Hamburg has failed to internationalise its tourism visitor portfolio Infrastructure: Increase of crude/energy prices Inter- and intraregional issues: Inter-regional increased competition will threaten the weaker regions Lack of inter-/ intra-regional cooperation The Fehmarnbelt connection will be a highway 3 Infrastructure: Increase the infrastructure between the 5 regions (e.g. high-speed trains, low-cost direct flights) Inter- and intraregional issues: Heighten the knowledge inter-regionally and bridge the mental gap (e.g. by extensive marketing campaigns) Strengthening of the synergies within the Metropolis Region Hamburg. Create one strong brand encompassing the Capital Region of Copenhagen and Region Zealand from Hamburg to Copenhagen – risk that the other Fehmarnbelt regions will be overlooked Financial/political issues: Lack of financing/sponsorship opportunities Lack of public engagement/funding Lack of political focus on and support to the tourism industry Tourist visitor tax National budget constraints Lack of support from national tourism board for cross border cooperation 4 3.0 Conclusions and main focus areas gained from the SWOT analysis 3.1 Summary of joint SWOT The Fehmarnbelt region is characterized by two strong Metropolises and the regions around them. The Metropolises and regions surrounding them face different challenges and opportunities in order to fully benefit from the increased tourism potential as a result of the coming fixed link. The surrounding regions are facing the risk of visitors just passing through. A major challenge is to exploit the potential for ‘stop-over’ tourism and create more ‘reasons to go’ for visitors from the other regions. A current fragmented and highly seasonal tourism product (and in some areas a product of a low standard) further challenges the potential for growth. The motivation for ‘exchange tourism’ between the two Metropolises seems low and is further challenged by lack of efficient infrastructure. There is a need for strong ‘awareness campaigns’ in both Metropolises to increase interest and ‘exchange tourism’. The Fehmarnbelt region overall has a weak international image as a tourist destination with few international well-known landmarks. Improving the overall image and internationalizing the tourist visitor portfolio will demand an improvement of the quality of the tourism product. Focus for future product developments should be on tourism products where the region possesses strong products/clusters that have a demographic and historical advantage and an obvious field for close corporation between tourism partners in the region. This stresses the need for further cooperation among partners in the Building Tourism network. 3.2 Introduction – main challenges and opportunities To unlock the immense growth potential for tourism, culture and business in the Fehmarnbelt region, that the coming fixed link will undoubtedly bring, a number of issues need to be addressed. The joint SWOT analysis highlights both a number of opportunities and challenges. When looking at the joint SWOT it is should be kept in mind that it is a huge and diverse region with many local/regional differences. Whilst these regional differences are highlighted in the individual SWOTS, the overall challenges and strategic opportunities for the whole Fehmarnbelt region are discussed below. These have been divided into the 4 main clusters. 3.2.1 The tourism product/destination The main challenges facing the tourism destination overall are described below: 1) Over-dependency on domestic markets: For the whole of the Fehmarnbelt region (with the exception of Copenhagen) there is an over-dependency on the domestic markets and a few other nearby markets. Even Hamburg with a booming tourism industry has failed to internationalise its tourism visitor portfolio. 2) High seasonality: The percentage of leisure bed nights is considerably higher than no. of MICE (Business tourism) bed nights overall in the region. At the same time there is a high seasonality dependency (with the exceptions of the Metropolises) due to the leisure product predominantly being based on recreational and beach resort tourism products – this in a region with considerable unstable weather conditions. 5 3) Low quality product: In addition, the leisure tourism products (particularly outside the metropolises) are quite fragmented with few internationally well- known landmarks, and (in areas) of a low standard. The reliance on domestic markets and the leisure product combined with a high seasonality makes the region quite vulnerable. To internationalise the visitor portfolio and extend the season (e.g. by attracting more business tourism), there is a need for product development and improvement of the quality of the tourism product, in particular the accommodation sector. Cluster of tourism products There lies an opportunity for product development by building and expanding tourism products where the region possesses strong products/clusters that have a demographic advantage and where there is an obvious field for close cooperation. This could be in the fields of: - Health and wellness tourism, particularly strong and sought after in Germany; - Event development, using the existing platforms (e.g. food, fashion, music) to create joint/crossborder events. The Öresund region in particular holds a strong position and experience within event development, and also Hamburg; - Cultural heritage tourism , using e.g. the Viking or maritime themes, music/musicals themes or the monarchies; - Technical visits, focusing on green growth and sustainability; - Active tourism, taking advantages of the recreational and nature/wildlife possibilities (e.g. biking, watersports, hiking); - Culinary tourism, local/regional produce, “New Nordic Food”. Cruise industry Furthermore, there lies an opportunity in taking advantage of the booming cruise industry. Both Hamburg and Copenhagen are located by the waterfront and both have a strong ‘maritime‘ history and a booming cruise sector with several cruise terminals. Also the port in Kiel has experienced a boom in the cruise sector, and with the establishment of a new cruise pier Kalundborg is trying to attract more cruises to the region. Expanding the cruise product in the Fehmarnbelt region is an opportunity to attract more international tourists to the region. 3.2.2 Infrastructure The main current infrastructural challenges are described below: 1) Lack of traffic: Currently there is a lack of traffic and efficient infrastructure between the Danish/Swedish and German regions. There are no low cost flights between Copenhagen and Hamburg. This, together with a lack of motivation for ‘exchanged’ tourism between the cities, has resulted in very limited tourism flow between the Metropolises. 2) Lack of co-campaigns on growth markets: At the same time the lack of efficient infrastructure limits the possibility for long haul growth markets to explore the whole Fehmarnbelt region. 6 There is an opportunity to increase the infrastructure more by developing e.g. high-speed trains and attracting more low cost flights. This will further heighten the interregional tourism business potential, whilst the potential for co-campaigning on long haul growth markets (e.g. air route development) should be explored further in order to increase international tourism. 3.2.3 Inter-/intraregional issues The fixed link can be a threat to some regions in the Fehmarnbelt region: 1) Regions will be overlooked: There is a risk that the fixed link will strengthen the ‘exchange’ tourism between the two metropolises whilst the other regions will be overlooked – visitors will drive past. 2) Increased interregional competition: Increased interregional competition will threaten the weaker destination. There is a risk that e.g. Zealand will lose out to the German destinations, offering a higher quality product at a lower price. The potential for “stop-over” tourism in the corridor on both sides of the coming link needs to be explored. There are examples from Spain where this have been successfully implemented. Call for joint regional cooperation Furthermore, to fully exploit the increased tourism potential interregionally (‘exchange tourism’) there is a call for joint regional cooperation. In Germany there lies an opportunity to strengthen the synergies within the Metropol Region Hamburg, whilst on the Danish side there is a need for creating a stronger brand encompassing the Regions of Zealand and the Capital Region of Copenhagen. Despite a geographically close proximity between the regions in the Fehmarnbelt region, there seems to be a mental gap/distance. Hence, there is a need for extensive marketing/awareness campaigns to be developed in order to bridge this mental gap, and to fully exploit the new opportunities and create more ‘exchange tourism’. This highlights the need for a strong joint regional corporation and a continuation of the work done in the Building Tourism network. 3.2.4 Financial/political issues The Fehmarnbelt region is also constrained by regional and national challenges such as: 1) Lack of political focus and support in the Swedish region 2) Tourist visitor tax and national budget constraints in Germany. 3) Lack of support from the national tourism board in Denmark for cross border cooperation. These constraints can be difficult to overcome. Highlighting tourism as a means for economic growth and development and the creation of jobs towards regional and national bodies could improve the conditions for the tourism sector. 7 4.0 Methodology 4.1 Desk research and interviews The SWOT analysis is based on desk research (see the various sources used below) and expert interviews. The following persons have been interviewed: - Lars Bernhard Jørgensen CEO, Wonderful Copenhagen Claus Bjørn Billehøj, Head of Division, City of Copenhagen Eskild Hansen, Direktør, Strategibureau EHSB Jens Friss Jensen, Lector, Roskilde University Johan Hermansson ,CEO, Malmö Turism Henrik Gidlund, Project Manager, Event Skåne Emma Håkansson, CEO, Helsingborg Tourism Dr. Rolf.-Barnim Foth, Ministery of Economy; Hanseatic City of Hamburg Mr Hary Puls, Director Customer Relations; AIDA cruises ; www.aida.de Dietrich von Albedyll, CEO Hamburg Tourist Board Dr. Malte Heyne, deputy CEO, Chamber of Commerce Hamburg Thomas Magold, Chairman Hamburg Tourism Association Christian Schmidt, Director of the Tourism Agency Schleswig Holstein; 4.2. Sources - www.visitcopenhagen.com; www.wonderfulcopenhagen.dk; www.visidenmark.com; Turismens økonomiske betydning I Hovedstadsområdet, VisitDenmark 2011; Monocle, july/august 2012; The city of Copenhagen Bicycle Strategy 2011-2025,City of Copenhagen; Top 300 Danish Attractions 2011, VisitDenmark www.regionsjaelland.com; Sjælland ser klynger i kølvandet på Femern-broen. Magasinet Ejendom, april 2012; Turismen i Regions Sjælland, VisitDenmark 2010; Turismeprofil, Visitdenmark 2008; www.visiteastdenmark.com; Strategi for grænseoverskridende turismeudvikling. Ostdansk Turisme & Ostsee Holstein Tourismus e.V., October 2010 http://www.hamburg-convention.com; www.statistik-nord.de http://metropolregion.hamburg.de www.wikipedia.com www.skane.com www.helsingborg.se www.malmo.se 8 - ‘Skåne I Siffror. Om turismen i Skåne, juni 2012. Tourism in Skåne ’Inkvarteringsstatistik december 2011’. Skane.com www.lunduniversity.lu.se Skåne i siffror 2022. Tourism in Skåne, april 2012 Different attractions’ individual websites www.sh-tourismus.de http://www.ostsee-schleswig-holstein.de 9