Business innovations for ‘community-based tourism’ development in rural areas: “the case of ‘Albergo Diffuso’”

1. January 13th 2015 Maurizio Droli International School Specializing in the Albergo Diffuso Associazione nazionale Alberghi Diffusi © Maurizio Droli, 2015, maurizio.droli@uniud.it Business innovations for ‘community-based tourism’ development in rural areas: “the case of ‘Albergo Diffuso’” Faculty of Tourism and Hospitality Management Opatija, Hrvatska- Croatia

2. A premise: “community-based” tourism (C-BT) is • a form of tourism which aims at include and benefit local communities, particularly indigenous peoples and villagers in the rural areas. For instance, villagers might host tourists in their village, managing the scheme communally and sharing the profits. 18/04/2018 M. Droli, 2013 – maurizio.droli@uniud.it 2 www.tourismconcern.org

3. • There are many types of community tourism project, including many in which the ‘community’ works with a commercial tour operator, but all community tourism projects should give local people a fair share of the benefits/profits and a say in deciding how incoming tourism is managed. 18/04/2018 M. Droli, 2013 – maurizio.droli@uniud.it 3 www.tourismconcern.org A premise: “community-based” tourism (C-BT) is

4. Community-based tourism should: • Be run with the involvement and consent of local communities. (Local people should participate in planning and managing the tour.) • Give a fair share of profits back to the local community.(Ideally this will include community projects (health, schools, etc).) • Involve communities rather than individuals. (Working with individuals can disrupt social structures.)18/04/2018 M. Droli, 2013 – maurizio.droli@uniud.it 4 www.tourismconcern.org

5. Community-based tourism should: • Be environmentally sustainable. (Local people must be involved if conservation projects are to succeed.) • Respect traditional culture and social structures. • Have mechanisms to help communities cope with the impact of tourists. • Keep groups small to minimize cultural / environmental impact. 18/04/2018 M. Droli, 2013 – maurizio.droli@uniud.it 5 www.tourismconcern.org

6. Community-based tourism should: • Brief tourists before the trip on appropriate behaviour. • Not make local people perform inappropriate ceremonies, etc. • Leave communities alone if they don’t want tourism. (People should have the right to say ‘no’ to tourism.) 18/04/2018 M. Droli, 2013 – maurizio.droli@uniud.it 6 www.tourismconcern.org

7. Distinguishing characteristics of C-BT: • A community by definition implies individuals with some kind of collective responsibility, and the ability to make decisions by representative bodies. • Community based tourism is tourism in which local residents (often rural, poor and economically marginalised) invite tourists to visit their communities with the provision of overnight accommodation. 18/04/2018 M. Droli, 2013 – maurizio.droli@uniud.it 7 www.tourismconcern.org

8. • The residents earn income as land managers, entrepreneurs, service and produce providers, and employees. At least part of the tourist income is set aside for projects which provide benefits to the community as a whole. • Community based tourism enables the tourist to discover local habitats and wildlife, and celebrates and respects traditional cultures, rituals and wisdom. 18/04/2018 M. Droli, 2013 – maurizio.droli@uniud.it 8 www.tourismconcern.org Distinguishing characteristics of C-BT:

9. • The community will be aware of the commercial and social value placed on their natural and cultural heritage through tourism, and this will foster community based conservation of these resources. • The tourist accommodation and facilities will be of sufficient standard for visitors, albeit those expecting simple rural accommodation. 18/04/2018 M. Droli, 2013 – maurizio.droli@uniud.it 9 www.tourismconcern.org Distinguishing characteristics of C-BT:

10. • The community will be required to have continuous access to a phone (which might be required for medical assistance) and daily access to email (which will be required by operators to confirm bookings). • The community may choose to partner with a private sector partner to provide capital, clients, marketing, tourist accommodation or other expertise. 18/04/2018 M. Droli, 2013 – maurizio.droli@uniud.it 10 www.tourismconcern.org Distinguishing characteristics of C-BT:

11. Distinguishing characteristics of C-BT: • Subject to agreement to the ideals of supporting community development and conservation, and to planning the tourism development in partnership with the community, this partner may or may not own part of the tourism enterprise. 18/04/2018 M. Droli, 2013 – maurizio.droli@uniud.it 11 www.tourismconcern.org

12. How do we evolve community- based tourism principles into community-based tourism business innovations? The “Albergo Diffuso” (litterally translated in “scattered hotel”) A brief description of the innovation

13. 18/04/2018 M. Droli, 2013 – maurizio.droli@uniud.it 13 The “Albergo Diffuso” The Albergo Diffuso (AD) was nominated ‘Best Practice for Growth’ by the European Business & Innovation Centre Network - EBN and United Nations Development Programme - UNDP. They were both rewarded in the international EBN-UNDP context on 27th June 2008 in Budapest, Hungary.

14. The “Albergo Diffuso” • If considered under a general viewpoint, an “Albergo Diffuso” is substantially three things: 1. an original model of hospitality 2. a coherent business model 3. a community-based development process 14

16. 1. The hospitality model

17. – www.vecchioconvento.it www.borgodeicorsi.it – www.borgodioria.it www.barbierigroup.it – www.casaoliva.it www.montignano.it – www.duecampanili.it www.ilborgodisempronio.it – www.lacasella.it www.albergodiffusogalatea.com – www.albergodiffusocastro.it www.laloggiagradara.it – www.agriturismolasorgente.it www.borghidibasilicata.eu – www.locandalfieri.com www.locandasenio.it – www.malvarina.it www.omuaxiu.it – www.jelsi.too.it www.lapianadeimulini.it – www.residenzasveva.com www.albergodiffusosettelune.it – www.sextantio.it www.albergodiffusosmerillo.com www.sottolecummerse.it www.trulliholiday.com – www.trullidea.it www.urbinoresort.com – www.valdikam.it www.vecchiamottola.com – www.ilborgoritrovato.com www.lecostellazioni.eu – www.villaretrosi.it ecc., ecc., ecc. 18/04/2018 17 What are we talking about? A few examples To visit more structures: www.alberghidiffusi.it

18. An example: – «The abandoned ancient buildings of a single hamlet are restored, one building is selected to house the common reception area - this is the formula for “horizontal“ hospitality, better known as Albergo Diffuso»*. Some media describe the Albergo Diffuso in a superficial way * Quoted from Isabella Fantigrossi,in: "Albergo diffuso, when the whole village is transformed into a hotel", 17 October 2011, tg24, can be downloaded from: http://tg24.sky.it/tg24/eco_style/2011/10/17/albergo_diffuso_turismo_sosteni bile.html 18

19. Others use partly correct and partly misleading definitions An example: – «Albergo diffuso translates literally as “scattered hotel.” The principle is that rooms, decorated in a consistently authentic and local style, are scattered throughout different buildings within the town but overseen by one manager. A traditional breakfast might be served at a local cafe or in the kitchen of one of the local houses, or delivered to your room. Call it a B & B village». New York Times, May 19, 2010, By Gisela Williams, retrieved by: http://www.nytimes.com/2010/05/23/travel/23journeys.html?pagewanted=all &_r=0 . A version of this article appeared in print on May 23, 2010, on page TR10 of the New York edition with the headline: Saving Towns by Filling Rooms. Other examples: (1); (n) 19

20. An example: – «Albergo Diffuso: two words conceiling the complexity of a project, an aspiration towards a new concept of tourism and hospitality, a concept that entails regeneration of the old town centres». Others offer a more in-depth description This is Stella Teodonio, quoted from: “In Vacanza ... a Casa”, Monthly magazine of the XIII and XVIII Comunità Montana dei Monti Lepini, N.6, June 2006, Rome. 20

21. • What range of services is offered to the guests? • What problems can it solve for its guests? • What value is created for the guests? • In short: what is the Albergo Diffuso? 18/04/2018 21 Overview of the Albergo Diffuso

22. • The “Albergo Diffuso” (AD), litterally translated “Scattered Hotel” is an Italian innovation in response to the 1976 earthquake which occurred in the Friuli Venezia Giulia Region • A hotel which offers to their guests a unique experience of living a historical centre / rural village Overview of the Albergo Diffuso: general characteristics of the hospitality model* (*: Dall’Ara, Dichter, UNDP brochure, 2008)

23. • it provides all the services of traditional hotels • the rooms are scattered inside the village and /or around old town centre 23 Overview of the Albergo Diffuso: general characteristics of the hospitality model* (*: Dall’Ara, Dichter, UNDP brochure, 2008)

24. • it provides the sensation of “being local” • guests are not traditional visitors or tourists, but “temporary residents” • it responds to the demand attracted more by the uniqueness of the places than by the existing international quality standards Overview of the Albergo Diffuso: general characteristics of the hospitality model* (*: Dall’Ara, Dichter, UNDP brochure, 2008)

25. 1. not development projects, but business opportunities and (perhaps) a business 2. services up to Hotel standards 3. unitary management 4. rooms (located in flats, semi- detached houses, etc.) are scattered in no less than two separate and pre-exisiting buildings 25 A closer look at the Albergo Diffuso (the hospitality model 10 key-features) (*: Dall’Ara, Dichter, UNDP brochure, 2008)

26. 5. “reasonable” distance between units and the reception (300 metres maximum) 6. shared services (e.g. catering) 7. lively community (not empty villages) 8. typical environment 9. distinguishable features 10.management style always fitting the territory and its culture 26 A closer look at the Albergo Diffuso (the hospitality model 10 key-features) (*: Dall’Ara, Dichter, UNDP brochure, 2008)

27. – accomodation – breakfast service – restaurant service – catering – bed-linen – room & house cleaning – assistance to the guests minimum 12 hours a day – telephone assistance during the daytime – assistance during the nightime (emergences) The basic (hotel) services offered (*: Dall’Ara, Dichter, UNDP brochure, 2008)

28. • Where did … come from? – the name: the region of Friuli Venezia Giulia, in north-eastern Italy (1982) – the original hospitality model: Giancarlo Dall’Ara, 1989 – the first complete project: San Leo, Pesaro-Urbino (central Italy), 1989 – the first national convention: Campobasso, Region Molise, 1998 – official national acknowledgment: Code of Tourism, 5 May 2011 28 The hospitality model called Albergo Diffuso: Its ‘brief’ history

29. • An Albergo Diffuso uses entire homes rather than just “rooms with en suite bathroom” • homes are scattered across the old town centre • cleaning is more expensive and takes longer • there are higher costs for heating in winter and air conditioning in summer respect traditional hotels18/04/2018 Every rose has its own thorns. What about the Weaknesses?

30. • a strong appeal toward the media and tourist markets • it creates a new hotel without new buildings, using un- or under-utilised dwellings • an original model of hotel hospitality • a model that can be exported to the entire Mediterranean basin with no- or a few structural adaptations 18/04/2018 30 ... Strengths ...

31. • Abused defintions of AD – especially noticeable in a few italian regions, where homes are networked using the brand-name of “Albergo Diffuso”, but hotel standard is not yet achieved • Private businesses speculating • Public bodies speculating • Assistentialism (Friuli Venezia Giulia)18/04/2018 31 (*Droli, Dall’Ara, 2012) ... Threats* ...

32. «Designed and managed as an integrated planning project, it had greater success at attracting public funds and developing a significant hospitality sector, even where none existed, than … (Source: Leonardo Zanier, quoted from an e-mail sent to M. Droli on 11 October 2009. Forthcoming. ) An example: The AD in Friuli Venezia Giulia (*Droli, Dall’Ara, 2012) 32

33. «… at interconnecting with the other production sectors: farming, crafts, education (with a few exceptions), natural resources and local development, restoration of the old rural ways (partly achieved), etc. All these areas are “monitored" but when they move, they do so separately». (Source: Leonardo Zanier, quoted from an e-mail sent to M. Droli on 11 October 2009. Forthcoming) (*Droli, Dall’Ara, 2012) 33 An example: The AD in Friuli Venezia Giulia

34. • It enhances the value of private goods(homes, people, businesses, local skills, products etc.) • It enhances the value of tangible and intangible resources (tourist and general infrastructure, natural resources, history, local culture, etc.) • Transforms an old town centre, a hamlet and a rural area into an ideal holiday spot and a good place to live all year round 34 Opportunities

35. • Inclusive opportunities for the local community: – Global Tourism Award 2010, London, World Travel Market • for Giancarlo Dall’Ara, President of ADI • Innovation: – 2008, Best Ideas, Budapest, EBN-UNDP • For the hospitality model and related actions as developed by G. Dall’Ara Research Staff: (M. Droli, G. Dichter) 18/04/2018 The original hospitality model: International awards (a selection) EBN - European Business & Innovation Centre Network UNDP - United Nations Development Programme

36. • Albergo Diffuso projects: 300 • “self–defined” alberghi diffusi: less than 100 • Registered ADs to date (ADI): 60 With so many projects, why so few ADs? A few figures (2011): 36

37. • Albergo Diffuso projects: ? • “self – defined” alberghi diffusi ? • Registered ADs (ADI): 70 apprx The growth rate of these projects is so fast that it is difficult to monitor all AD’s projects and self-defined ADs (source: Google) A few figures (2012): 37

38. 18/04/2018 38 … where can you find ADs? Source: GDA.

41. «From 1945 to date, the number of rooms in Italy has grown from nearly 30 million to 120 million: the housing stock has quadrupled. It is true that Italy had a demographic boom after the wars (and not just Italy) but Italy is hugely over- urbanised with at least 20 million empty rooms»*. Potential? *Quoted from Aldo Loris Rossi, Professor of Architectural Planning, Università di Napoli, and President of the National Association of Architects, 2008. 41

42. Poor. there are no joint public- private plans to facilitate the development of innovations across large territories, whether regional or national. What are the prospects for a rapid development of this innovation in Italy? 42

43. Poor. A few regions where the existence of ADs firms is literally dependent on public funds candidate themselves as models to imitate (E.g. Friuli Venezia Giulia) What are the prospects for a coherent development of this innovation abroad? 43

44. • a novelty is created that responds to market demand • business improves (turnover) • average operating costs for the rooms are reduced • … What advantages derive from strictly following this hospitality model? 44

45. Old town centres, hamlets and small rural economies have been in existence for centuries. They are not new. They were ‘simply’ missing an engine to drive their revival: this is the AD and its industry. 18/04/2018 45 What advantages derive from strictly following this hospitality model: a summary

47. 2. The Albergo Diffuso as a business model Key actions Revenue streamsCost centres Resources Top clients 47

49. Top clients • generally: – Who do the ADs work for? – Who are their most “attractive” clients? – Who do they create value for? 18/04/2018 49

50. Generally speaking, AD guests are more: • self organised • interested in experiencing local culture • attracted by non-famous new destinations, with a sufficiently appealing identity • ‘post-industrial’ (Fabris, 2003) • ‘permeable’ (Canestrini, 2004) • ‘third generation’ (Dall’Ara, 2005) 18/04/2018 50

51. This new type of tourist demands more from operators: • achieve and surpass standards • create a uniqueness that has value for those “ from the outside looking in” 18/04/2018 51

52. • reasons for travelling* – relaxing 47-60% – outdoor sports 8-12% – visiting friends/rel.ves 8-10% – events 7-10% – day trips in the area 6-9% 18/04/2018 52 “slowing down” space, being outdoors blending with the locals finding each other again finding new places (* Source: International Specialist School of Albergo Diffuso (www.sisad.it). Survey date 2004-2008, area: FVG, sample: 364 respondents). A top clients’ profile

53. • In short: what do advantages stem from managing these clients? – entry into niche and “new luxury” markets – long term relations with travel agents, tour-ops and final clients 18/04/2018 53 Top clients

55. Key actions In general: • what activities enable the supply of these services? • what are the key relations with clients? • what distribution channels are the most important? 55

56. Key actions Actions: • sell the hamlet as a “tourist product” (hospitality + catering + complementary activities + local products + transport, etc.) • facilitate the develpment of novelties • offer revenue opportunities to young people, businesses, people with specific skills, … • develop static and dynamic packaging • contribute to the safeguard of natural and historical resources 56

57. Key actions Distribution channel management: very wide differences across businesses • indirect sales (through agencies and tour ops)* 20-100% • direct sales (straight to the final client)* 50-80% • non tourist sales (variation) +/++/+++ * estimated values 57

58. Key actions Relationship management: • guest satisfaction and loyalty, expenditure by guests, home owners, residents • mutual curiosity • mutual respect • common responsibility towards shared resources and community • CRS 58

59. Key actions In short: what advantages do these activities bring? • moving from resources to products • joint promotion (and sales) • problem-solving • platforms/network/partnership • … 59

61. Revenue streams • In general: – how much is an AD worth and how stable is its main source of income? – what services and products are guests paying for? – what services are guests not paying for but are willing to pay? 61

62. Rooms revenue/N. of rooms Total room sales Potential room sales (REvPAR) Gross sales/N. of rooms Total sales including catering and other services, after taxes and discounts/ N. available beds (GOPPAR) 62 Revenue streams • sources of revenue: two indicators

63. 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 Eur Vendite effettive (€) Mancate vendite (€) Vendite potenziali (€) • room only, actual and missed sales by month (*: Source: SISAD, average data for 3 ADs with a minimum fee of 25 euros per night per person. Revenue streams 63

64. Visibility of the AD- local area Commercial value of the free publishing services (articles) from the press, radio and media in general; Reduced purchasing costs for shared goods and services Value of savings on all production factors (except water and energy) More “zero miles” services Value of services and/or products sold/booked by the AD Savings on water and electricity charges Value of savings in terms of operating costs Revenue streams • smaller outgoings for the community 64

65. Revenue streams • In short: what are the advantages for businesses and the community from optimising these flows? ‒ stabilize sales of existing services ‒ increased sales for low and end of season ‒ increased revenue per unit of product (not hospitality) 65

67. • In general: – what are the diseconomies compared to a traditional hotel? – what are the largest expenditure items for an Albergo Diffuso? – what are the most expensive resources? – is the AD “cost driven”? Cost centres 67

68. • Diseconomies (reasons why the Albergo Diffuso should be managed differently from a traditional hotel) – greater operating costs: heating, electricity, … – maintenance: both daily care and one- off repairs – staff having to move around the village Cost centres 68

69. • cost structure and typical costs (*: Source: SISAD, 2009) Cost centres ITEM % of total annual costs (M3-FVG) Staff/personnel costs 33,60% Advertising and promotions 21,70% Other costs (third party services) 11,50% Accounting 7,70% Cleaning and laundry services 6,90% Telephone 5,20% Purchases (home and office equipment) 4,10% Consultants 3,90% Stationery 2,50% Professional fees 2,50% 69

70. • cost structure: Cost centres ITEM % of total annual costs (M3-FVG) Insurance 2,00% Maintenance (incl. gardening and grass cutting) 1,50% Trade association fees 1,20% Postage 0,90% Entertainment 0,70% Outsourced catering 0,00% Intermediaries 0,00% Miscellaneous energy 0,00% Members fees 0,00% Electricity 0,00% Gas 0,00% Etc. (*: Source: SISAD, 2009) 70

71. In short: what advantages can a balanced cost structure bring to the AD management, its members and the local community? • more stable final price structure, greater range, more all-inclusive packages • easy-to-compute variable prices (dynamic packages), etc. Cost centres 71

73. Resources • In general: – what resources are needed by THIS hospitality model? – what resources, among many, are crucial for revenue in the short term? (to start) – what resources should be considered strategic? (to stay in the market)18/04/2018 73

74. Resources • The “countryside”* 18/04/2018 (* Garrod et al., 2006) Elements of the countryside Sea, mountain or hill landscape ,,, Nature (wildlife), animal and plant species Biodiversity Geology and morphology Air quality Natural and traditional borders in farmed land Rural buildings Rural villages and markets Historical buildings, industrial architecture... Pathways, signposted walkways, private rural ways, ... Wetlands, rivers, lakes Air and water quality Woodlands and forests Local traditions, dialects, cuisine, crafts, festivals and lifestyles 74

75. Resources • features of “rural” villages (mountain, seaside, hillcountry, …): ‘the luxuries of our time’* breathing clean air (or not too polluted) “slow” pace of life safety relationships, being together authenticity free space around you 18/04/2018 (* Enzensberger, 1999; De Masi, 2004) 75

76. Resources • RURAL RESOURCES. Take ‘relationships and being together’: rural villages are often very small. What are the advantages?  RELATIONSHIPS AND BEING TOGETHER: (*ISTAT, 2008) I.E.: “Meeting your friends every day” (respondents aged 6+) up to 2.000 inhabitants 27% up to 2-10.000 inhabitants 24,2% up to 10-50.000 inhabitants 23,9% metropolitan areas: 16,1%18/04/2018 76

77. Resources • SKILLS: according to CNEL:* “the skills required for these new forms of hospitality are mainly managerial and require higher education, graduate and post- graduate qualifications”. (*: CNEL Report for the Conference of Italian Tourism, Genoa, 20-21 September 2004) 77

78. Resources 18/04/2018 • FINANCING business creation and consolidation:  work and training:  EU structural funds ESF and ERDF  investments for existing businesses:  CIP / JEREMIE 78

79. Resources 18/04/2018 • FINANCING: LEADER programmes for rural development and the key role of Local Action Groups • Other tools • National • Regional 79

80. Resources 18/04/2018 • FINANCING public bodies for projects impacting “wide areas”:  South-East Europe – SEE  Adriatic – IPA  Europe in the Mediterranean – MED  Interreg IVC:  Horizon 2020 80

81. Resources 18/04/2018 • FINANCING: a common trend:  Innovative content, rigorous management, results and accountability are increasingly required by the various financing bodies  public financing is considered “a complement” to private funds. No longer the other way around 81

82. Resources • In short: what are the potential advantages of adequately enhancing these and other resources? – real estate development – financial development – jobs and economic development – sustainable development – sustainable, long term competitive advantage 82

84. 3. The AD as a community-based development process 84

85. The most important partners In general: • who are the suppliers? • which businesses, associations, public bodies work with the AD? • who is in the unit that manages the Albergo Diffuso? 85

86. • The Albergo Diffuso usually acts as the most relevant stakeholder on the territory • It stimulates local actors (both public and private) to re-think their development strategies:  It stimulates the local existing and potential entrepreneur in creating new businesses in the tourist sector  It helps local authorities to re-think development strategies because it “re-positions” the area on the national and international tourist markets A partnership-based model for tourist development of the territories 18/04/2018 86

87. Which problem does it solve and how? 18/04/2018 • It generates a high quality tourist product, expression of local areas and territories without generating negative environmental impacts • It helps to develop and network the local tourist supply • It increases sustainable tourist development in internal areas, in villages and hamlets and in historical centers, in the off-beaten tracks areas increasing the supply in the tourist market • In contributes to stop the abandoning of the historical centers • It promotes participation within the local communities 87

88. How? by creating trade contacts between guests and local resource managers (B2C) and among managers (B2B) HETEROGENOUS RARE RESOURCES FOR GUESTS 18/04/2018 88 HETEROGENO US AND RARE RESOURCES FOR GUESTS 18/04/2018 (* Droli, 2009)

89. Local authoritiesEvent organisers 2 Catering staff 4 5 HOTEL owners of the AD rooms 3 GLOBAL MARKET 1 Stakeholders and main coopetitors HETEROGENO US AND RARE RESOURCES FOR GUESTS 18/04/2018 (* Droli, 2009) 89

90. Local authoritiesEvent organisers Farmers artisans small retailers 2 7 Catering staff 4 5 HOTEL 8 Owners of the AD rooms 3 GLOBAL MARKET 1 Traditional businesses (non turist) HETEROGENO US AND RARE RESOURCES FOR GUESTS 18/04/2018 (* Droli, 2009) 90

91. Guides and local experts Local authoritiesEvent organisers farmers artisans small retailers 2 7 Catering staff 4 5 HOTEL 9 8 owners of AD rooms 3 GLOBAL MARKET 1 Students researching local resources Sport instructors People with specific competences and useful skills HETEROGENO US AND RARE RESOURCES FOR GUESTS 18/04/2018 (* Droli, 2009) 91

92. Guides and local experts sports instructors Students researching local resources Tour-operator, Agenzie d’incoming, Network di agenzie, Bus-operator, .… Park managers, Universities, LAGs Business incubators, ... Local authoritiesEvent organisers farmers artisans small retailers 2 7 DMO, SMEs consortiums, market clubs, product clubs, international circuits, ... Catering staff 4 5 HOTEL 6 9 10 8 owners of AD rooms 3 Facilitators GLOBAL MARKET 1 Nature parks, wider institutions and commercial intermediaries 18/04/2018 (* Droli, 2009) HETEROGENO US AND RARE RESOURCES FOR GUESTS 92

93. In short, what are the advantages of full development and productive management of these partners? • economies of scale • revenue optimisation • new sources of revenue • reduced risk • enhanced resources • other… 93

94. Why partnering: Marketing • Improve destination image • Improve marketing efficiency • Improve market coverage and reach • Provide support for electronic marketing and distribution, including Internet • Provide support for participation at trade shows • Harness power of co-op marketing programmes • Access new markets • Etc. 94

95. Why partnering: Products • Enhance and preserve resources • Set quality standards • Develop attractions, theme parks and accommodation • Provide technical support for innovative product development programs • Contribute to the economic wealth of the community • Create sustainable development of tourism sector • Overcome trade and investment barriers • Protect consumers • Deal with competition • Etc. 95

96. Why partnering: infrastructure • Improve roads, transport infrastructure and basic services • Provide impetus for intermodal transportation • Improve public health and sanitation • Improve safety and security • Enhance telecommunications system • Etc. 96

97. Why partnering: Research and Technology • Provide research and measurement methodologies • Implement Tourism Satellite Accounts • Enhance technological innovation and application • Etc. 97

98. Why partnering: Human resources • Set service and quality standards • Provide training and education programs • Improve productivity and innovation • Etc. 98

99. Why partnering: Financing • Obtain investment and funding • Leverage public investment • Obtain start-up financing • Improve yield • Etc. 99

100. Why partnering: the Environment • Preserving resources e.g. natural, cultural, historical, etc. • Sensitizing potential customers (e.g. students, employees, firm’s managers, etc.) about the importance of specific resources • Recreating wilderness in environmentally compromised areas (“greening”) • Etc. 100

101. The dilemma • Within public-private partnering processes: – managers cannot leverage their authority – no one can be fired by any other – the willingness of the public decision makers and/or firms’ managers: • to participate or not in the PPP • to pay or not for it • how much to pay, etc. cannot be given as certain. • Starting from this assumptions, how is it possible to increase the productivity (Cost/Result ratio) of these processes? 101

102. What are the outcomes? How sustainable are both innovation and partnership? 18/04/2018 • Environmental sustainability – nothing new has to be built • Institutional sustainability – local actors must agree upon the proposed development model • Social sustainability - it mainly applies to areas which are considered marginal, usually out of the ordinary development schemes and models, off the beaten track • Economic Sustainability – it is a market driven model of hospitality which works where there is a specific demand 102

103. An AD partnership is usually created if the following conditions are met 18/04/2018 • There is a reasonable number of rooms (min. 7) located at a reasonable distance from each other (approx. 200 m), that can be made available to the AD for a long term (min. 9 yrs). • The village is able to provide a minimum of services to the guests (there is a pharmacy, a food store, a coffee shop, etc.). • The surroundings of the area have some appeal (countryside, sea, mountains, archeological sites etc.). 103

104. An AD partnership is usually created if the following conditions are met 18/04/2018 • The idea has been launched within the local community and the residents have learned the advantages that can come from the innovation • Local actors are interested in working together • A single management unit can be created and is willing to take most of the entrepreneurial risk. The unit can be either a single entrepreneur, a cooperative, or any other suitable form of productive association. 104

105. Its contribution to Human Development and profitability 18/04/2018 The proposed innovation is in line with the achievement of: • MG 7 “ensure environmental sustainability” supporting the integration of sustainable development in country strategies • MG 8 “develop a global partnership for development” enhancing decent work and employment opportunities in the tourist-related sector, based on the exploitation of local resources. 105

106. Its contribution to Human Development and profitability 18/04/2018 It complies with the Global Code of Ethics for Tourism of the UNWTO - specifically with: • Art. 1 “Tourism’s contribution to mutual understanding and respect between peoples and societies” • Art. 3 “Tourism, a factor of sustainable development” • Art. 4 “Tourism, a user of the cultural heritage of mankind and contributor to its enhancement” • Art. 5 “Tourism, a beneficial activity for host countries and communities” 106

107. International interest expressed to the Italian Association of Alberghi Diffusi (ADI) 18/04/2018 In Europe: • Albania • Austria • Croatia • France • Portugal • Switzerland • Other EU countries Abroad: • Brasil • Cuba • Costa Rica • Ecuador • Panama • Other countries 107

108. For further information the relevant websites are the following: 18/04/2018 • http://www.albergodiffuso.com • http://www.alberghidiffusi.it • http://www.sisad.it 108

109. For further information the relevant books are the following: 18/04/2018 • BIC Lazio, (2007). “L’albergo diffuso come strumento innovativo per la valorizzazione del potenziale turistico”, Rome: BIC Notes, December. • Giancarlo Dall’Ara (2004). “Il fenomeno degli alberghi diffusi in Italia”. Patto Territoriale del Matese, Campobasso. • Giancarlo Dall’Ara (2010). “Manuale dell’Albergo Diffuso”. Milan: Franco Angeli. • Maurizio Droli, Giancarlo Dall’Ara (2012). “Ripartire dalla Bellezza. Gestione e marketing delle opportunità d’innovazione nell’albergo diffuso, nei centri storici e nelle aree rurali”. Padova: Editrice Universitaria CLEUP. 109

110. Actors active in Italy and available to cooperate in order to properly transfer this innovation 18/04/2018 • The Italian Association of Alberghi Diffusi (ADI) • Giancarlo Dall’Ara’s marketing consultancy firm • S.I.SA.D. International School Specializing in the Albergo Diffuso 110

111. 18/04/2018 Actors to involve in the receiving country in order to transfer the innovation properly • National Ministries involved with tourism to analyze the legal aspects • The local administrations in order to verify how this new model can fit their existing development plans • Local stakeholders (public and private sectors) involved in the tourist sector to analyze the feasibility • Where possible, the support of a Business Innovation Centre or a Local Economic Development Agency which can support local administrations and entrepreneurs providing financial and non financial services 111

112. For further information the relevant scientific articles and conference proceeding papers are the following: 18/04/2018 AD as Hospitality model: • Dall’Ara, G. (2005), “Il fenomeno dell’Albergo Diffuso in Italia”. Conference proceedings, Campobasso, November, 2004. • Dall’Ara, G. (2010), “Manuale dell’Albergo Diffuso”, Milano: Franco Angeli. • Confalonieri M. (2011), “A typical Italian phenomenon: The albergo diffuso”. Tourism Management, 32, 3: 685-687. (ADI – GDA considers valid only the first part of this two pages article, while the remaining have been considered misleading) AD as a business model and PPP-based development process: (n) 112

113. Thanks for your attention and the patience! You can quote any part of this lecture provided you cite the source: Droli, M. (2015), Seminar: “Business innovations for ‘community-based tourism’ development in rural areas: “the case of ‘Albergo Diffuso’”, University of Opatija, Faculty of Tourism and Hospitality Management, Opatija, Croatia, 13th January. Photo credits: Albergo Diffuso “Residenza Sveva” Termoli, (CB), Albergo Diffuso ‘Locanda Senio’, Palazzuolo sul Senio (FI), Albergo Diffuso “Sextantio”, Santo Stefano di Sessanio, (AQ), Agenzia Qviaggi; Tuscanhotels; Elbacampingeuropa; Tuscany-charming. Maurizio Droli For further info and ideas of collaboration: http://www.sisad.it/en maurizio.droli@uniud.it 113

Business innovations for ‘community-based tourism’ development in rural areas: “the case of ‘Albergo Diffuso’”

Business innovations for ‘community-based tourism’ development in rural areas: “the case of ‘Albergo Diffuso’”

Recommended

More Related Content

What's hot

What's hot(20)

Similar to Business innovations for ‘community-based tourism’ development in rural areas: “the case of ‘Albergo Diffuso’”

Similar to Business innovations for ‘community-based tourism’ development in rural areas: “the case of ‘Albergo Diffuso’”(20)

Recently uploaded

Recently uploaded(20)

Business innovations for ‘community-based tourism’ development in rural areas: “the case of ‘Albergo Diffuso’”