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Dynamisation of governance approaches in
destination management by leadership
elements: the case of Cyprus
Andreas Kagermeier
Trier University, Germany
Session: Challenges for Destination Governance Approaches in the Era of Post-Fordism
at the AAG Annual Meeting,
March 29 - April 2, 2016, San Francisco
From Fordist to post-Fordist production schemes
• Fordist period: marked by standardised products created efficiently
in large quantities (Economies of Scale)
• Tourism offer in the second half of the 20th century focused on low-
cost standardised products
– monopolistic structures a small number of tour operators dominating
– integrated trusts (including transportation and accommodation)
• Mediterranean: greatest global concentration of tourism activities
generating around a quarter of global revenue from tourism
=> prototype of Fordist production scheme
– Standardised hotels along the coastline for uniform beach tourism dominated the
development in the last decades of the 20th century
– Beach tourism a simple and standardised product
– Individual stakeholders were able to deliver the whole product along the touristic
service chain (distribution, transport, accommodation, restaurant and activities)
– Cooperation in Mediterranean beach tourism was generally limited
Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 2
Tourism CY Findings ConclusionIntroduction
From Fordist to post-Fordist production schemes
• Role of destination marketing organisations (DMOs) was usually
rather limited.
– promoting the respective destination with a superficial image.
– not involved in the operational business
– strategic functions were limited
 governance requirements were limited
• Late 20th century: post-Fordism as production and consumption
scheme gaining importance
• production more flexible
• importance of interaction plays a larger role . “economies of scope”
• networks play a much larger role
• Differentiated consumption patterns as main motive for the change
from Fordist to post-Fordist production schemes
=> broader, more individualised range of products and services
• Internet facilitating commercialisation of products from the Long Tail
Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 3
Tourism CY Findings ConclusionIntroduction
From Fordist to post-Fordist production schemes
• New lifestyle groups demand differentiated products (such as
wellness, cycling, hiking, nature-based offers)
• Customer segmentation and products for smaller target groups in
search of specific experiences became much more important.
• Today, customers are often actively involved in the production of their
“flow” experiences increasingly changing their role from traditional
consumers to active “prosumers”
• Linking post-Fordism and post-modernity
• The post-modern tourist seeks authentic experiences
• Hybrid forms of vacation with merged elements of cultural, sport or
wellness tourism (often rounded off by culinary arts)
• Production side: different stakeholders have to be involved
• Interaction and cooperation are increasingly becoming the key factor
• Role of DMOs is changing significantly (moderators and mediators in
the product development process)
Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 4
Tourism CY Findings ConclusionIntroduction
Typology of Governance-Structures
Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 5
Source: Own design following FLAGESTAD & HOPE 2001, p. 452
Ski
corporation
COMMUNITY
MODEL
CORPORATE
MODEL
Independent
operator
LocalTourist
Board
Local
government
Tourism CY Findings ConclusionIntroduction
Typology of Governance-Structures
Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 6
Source: Own design following HALL 2011, p. 443 and BODEGA et al. 2004,p. 17
Non-
hierarchical
Hierarchical
Private actorsPublic actors
HIERARCHIES
COMMUNITIESNETWORKS
MARKETS
ACTORS
STEERINGMODE
Steering Mode and Actors
(HALL)
Low
High
HighLow
Constellation
Model
Governed
Model
Community
Model
Corporative
Model
CENTRALIZATION
DENSITY
Centralisation and Density of interaction
(BODEGA, CIOCCARELLI & DENICOLAI)
Tourism CY Findings ConclusionIntroduction
Typology of Governance-Structures
Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 7
Source: Own design
Non-
hierarchical
Hierarchical
PrivatePublic
Stakeholders
Steeringmode
Tourism CY Findings ConclusionIntroduction
Cyprus in the stagnation phase of its beach
tourism life cycle
Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 8
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Source: Own design using data from www.mof.gov.cy 2016
Arrivals of tourist in the Republic of Cyprus from 1980 to 2015
Tourism CY Findings ConclusionIntroduction
Stagnation of Fordist product
Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 9
Source: authors own photos
Tourism CY Findings ConclusionIntroduction
Strategic Plan for Tourism 2000-2010
• Should mark a turnaround of this Fordist top-down
approach
• Part of the repositioning strategy
• Clear orientation towards regional governance
approaches was declared:
“Within the framework of Cyprus repositioning
strategy each region will be called upon to prepare its
own Regional Strategy. Each region will have its own
vision regarding its tourist growth and will focus on
developing the right product to fit the needs of market
segments it will choose to target” (CTO, 2000, p. 7).
Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 10
Tourism CY Findings ConclusionIntroduction
Cyprus tourism map
Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 11
Source: Author’s design based on: www.mapsfordesign.com
Nicosia
Limassol
Agia
Napa
Morphou
U. K. Sovereign
Base Area
U. K. Sovereign
Base Area
United Nations
Buffer Zone
United Nations
Buffer Zone
Paphos
Polis
Akrotiri
PAPHOS
LIMASSOL
LARNACA
KYRENIA
Mediterranean Sea
Mediterranean Sea
NICOSIA
FAMAGUSTA
Kyrenla
Paralimni
Famagusta
Larnaca
0 10 20 km


Troodos
Gebirge
r
r
r Mesaoria




9
9
9
9
9
Salamis
Choirokoitia
Kourion
St. Hillarion
Buffavento
Kantara
Varosha
_
_
_ _
_
_
Tourism CY Findings ConclusionIntroduction
Rural … cultural … natural … tourism
Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 12
Tourism CY Findings ConclusionIntroduction
Source: authors own photos
Cyprus in the stagnation phase of its beach
tourism life cycle
Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 13
Source: Own design using data from www.mof.gov.cy 2016
Overnight stays in different regional destinations
0
2
4
6
8
10
12
14
16
18
20
Mio.Overnightstays
Troodos
Nicosia
Paphos
Limassol
Larnaka
Agia Napa/Paralimni
Tourism CY Findings ConclusionIntroduction
Cyprus tourism map
Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 14
Source: Author’s design based on: www.mapsfordesign.com
Nicosia
Limassol
Agia
Napa
Morphou
U. K. Sovereign
Base Area
U. K. Sovereign
Base Area
United Nations
Buffer Zone
United Nations
Buffer Zone
Paphos
Polis
Akrotiri
PAPHOS
LIMASSOL
LARNACA
KYRENIA
Mediterranean Sea
Mediterranean Sea
NICOSIA
FAMAGUSTA
Kyrenla
Paralimni
Famagusta
Larnaca
0 10 20 km


Troodos
Gebirge
r
r
r Mesaoria




9
9
9
9
9
Salamis
Choirokoitia
Kourion
St. Hillarion
Buffavento
Kantara
Varosha
_
_
_ _
_
_
Tourism CY Findings ConclusionIntroduction
Identification of the core constraints
• Delimitations of regional destinations perpetuating
the dependency of the hinterland
Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 15
Tourism CY Findings ConclusionIntroduction
Wine Routes
Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 16
Source: CTO 2008
CSTI: Discover the real Cyprus (Village routes)
Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 17
Source: csti-cyprus.org 2008
1. Limassol District
2. Larnaka (Orini) District
3. Famagusta District (Red Earth
and Windmills)
4. Troodos Green Heart of Cyprus
5. Pitsilia
6. North Pafos and Akamas
Identification of the core constraints
• Delimitations of regional destinations perpetuating
the dependency of the hinterland
• Incomplete, partial decentralisation
Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 18
Tourism CY Findings ConclusionIntroduction
Incomplete, partial decentralisation
• Six regional boards initiated by the CTO since 2002
• Regional strategy studies commissioned (financed) by the CTO
• No substantial own funding for the regional tourism boards
• About 10,000 € for material expenses from the CTO
• Regional tourism brochures still published by the CTO
• Local tourist information offices still run by the CTO
=> Perpetuation of the centralised approach
Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 19
Source: CTO
Tourism CY Findings ConclusionIntroduction
Identification of the core constraints
• Delimitations of regional destinations perpetuating
the dependency of the hinterland
• Incomplete, partial decentralisation
• Dominance of SMEs in the hinterland with low
level of professionalism
Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 20
Tourism CY Findings ConclusionIntroduction
Dominance of SMEs in the hinterland with
low level of professionalism
• Most of the stakeholders who run the tavernas, guest houses, craft-
shops and activity-oriented agencies hold small-scale, family-run
enterprises that sometimes lack the competencies (Peters, 2005)
required for providing sophisticated post-Fordist products.
• The regional core competencies (Pechlaner et al., 2006b) have only
been developed to a small extent.
• Regarding stakeholders’ strategic orientations, most can be described
as “defenders” and “reactors”.
• Avci et al. (2011) consider these types of stakeholder to be typical of
developing countries.
• Occupancy rates of about 15 per cent (Kaufmann et al., 2012, p. 269)
= weak performance of rural tourism accommodation facilities
• Booking platform by the CTO, but without any further option for activities
(www.agrotourism.com.cy)
Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 21
Source: CTO
Tourism CY Findings ConclusionIntroduction
Identification of the core constraints
• Delimitations of regional destinations perpetuating
the dependency of the hinterland
• Incomplete, partial decentralisation
• Dominance of SMEs in the hinterland with low
level of professionalism
• Isolated actions by potential leaders
Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 22
Tourism CY Findings ConclusionIntroduction
The role of potential leaders
• Regional tourism boards only partially assume the role
of leaders
• SMTE incapable of organising themselves
• Can “prospectors” and “analysers” (Avci et al., 2011) be
identified which could play a crucial role as innovation
motors ?
Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 23
Source: CTO
Tourism CY Findings ConclusionIntroduction
Innovative stakeholders as possible leaders?
Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 24
Cyprus Villages at Tochni
(www.cyprusvillages.com.cy)
Source: authors own photos
Ayii Anargyri Hotel in Miliou
(www.aasparesort.com)
Library-Hotel in
Kalavassos
(libraryhotelcyprus.com)
The role of potential leaders
Expert interviews with the owners or managers of these enterprises
• They do not cooperate with the regional tourism bodies.
• Explicitly distance themselves from regional tourism development
activities and develop their products independently.
• Rely on their own ability to promote their products.
• Succeeded in developing a niche in the tourism market
• Do not want their USP to be disseminated throughout the region
• Organisational distance from regional and national structures is
explained by the structural deficits and weak consideration of (post-
Fordist) products
• See no advantage in cooperating as long as the structural conditions
remain the same.
• Lack of potential win-win situations is the main reason why they act
independently
Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 25
Tourism CY Findings ConclusionIntroduction
Conclusion
Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 26
• Top-down approach applied by the responsible public body at the national level is
only partly facilitating the development of self-organised regional structures
• Dominant private stakeholders – representing the traditional sun-and-sea
segment – not willing or capable of assuming a leadership role in the reorientation
process
• Providers of new innovative products are often too small and poorly organised to
achieve competitive product quality and to gain market access
• Innovative stakeholders who have the capacity to invest in new products
independently and to gain market access are acting in an isolated fashion.
• So they fail to act as innovative entrepreneurs who could lead the destination’s
restructuring process.
• Leadership approaches do not develop by themselves.
• If DMOs are unable to assume the leadership role on their own, requiring
masterminds from the private sector to implement leadership-based strategies,
adequate destination management structures are an indispensable precondition.
Tourism CY Findings ConclusionIntroduction

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Dynamisation of governance approaches in destination management by leadership elements: the case of Cyprus

  • 1. Dynamisation of governance approaches in destination management by leadership elements: the case of Cyprus Andreas Kagermeier Trier University, Germany Session: Challenges for Destination Governance Approaches in the Era of Post-Fordism at the AAG Annual Meeting, March 29 - April 2, 2016, San Francisco From Fordist to post-Fordist production schemes • Fordist period: marked by standardised products created efficiently in large quantities (Economies of Scale) • Tourism offer in the second half of the 20th century focused on low- cost standardised products – monopolistic structures a small number of tour operators dominating – integrated trusts (including transportation and accommodation) • Mediterranean: greatest global concentration of tourism activities generating around a quarter of global revenue from tourism => prototype of Fordist production scheme – Standardised hotels along the coastline for uniform beach tourism dominated the development in the last decades of the 20th century – Beach tourism a simple and standardised product – Individual stakeholders were able to deliver the whole product along the touristic service chain (distribution, transport, accommodation, restaurant and activities) – Cooperation in Mediterranean beach tourism was generally limited Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 2 Tourism CY Findings ConclusionIntroduction
  • 2. From Fordist to post-Fordist production schemes • Role of destination marketing organisations (DMOs) was usually rather limited. – promoting the respective destination with a superficial image. – not involved in the operational business – strategic functions were limited  governance requirements were limited • Late 20th century: post-Fordism as production and consumption scheme gaining importance • production more flexible • importance of interaction plays a larger role . “economies of scope” • networks play a much larger role • Differentiated consumption patterns as main motive for the change from Fordist to post-Fordist production schemes => broader, more individualised range of products and services • Internet facilitating commercialisation of products from the Long Tail Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 3 Tourism CY Findings ConclusionIntroduction From Fordist to post-Fordist production schemes • New lifestyle groups demand differentiated products (such as wellness, cycling, hiking, nature-based offers) • Customer segmentation and products for smaller target groups in search of specific experiences became much more important. • Today, customers are often actively involved in the production of their “flow” experiences increasingly changing their role from traditional consumers to active “prosumers” • Linking post-Fordism and post-modernity • The post-modern tourist seeks authentic experiences • Hybrid forms of vacation with merged elements of cultural, sport or wellness tourism (often rounded off by culinary arts) • Production side: different stakeholders have to be involved • Interaction and cooperation are increasingly becoming the key factor • Role of DMOs is changing significantly (moderators and mediators in the product development process) Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 4 Tourism CY Findings ConclusionIntroduction
  • 3. Typology of Governance-Structures Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 5 Source: Own design following FLAGESTAD & HOPE 2001, p. 452 Ski corporation COMMUNITY MODEL CORPORATE MODEL Independent operator LocalTourist Board Local government Tourism CY Findings ConclusionIntroduction Typology of Governance-Structures Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 6 Source: Own design following HALL 2011, p. 443 and BODEGA et al. 2004,p. 17 Non- hierarchical Hierarchical Private actorsPublic actors HIERARCHIES COMMUNITIESNETWORKS MARKETS ACTORS STEERINGMODE Steering Mode and Actors (HALL) Low High HighLow Constellation Model Governed Model Community Model Corporative Model CENTRALIZATION DENSITY Centralisation and Density of interaction (BODEGA, CIOCCARELLI & DENICOLAI) Tourism CY Findings ConclusionIntroduction
  • 4. Typology of Governance-Structures Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 7 Source: Own design Non- hierarchical Hierarchical PrivatePublic Stakeholders Steeringmode Tourism CY Findings ConclusionIntroduction Cyprus in the stagnation phase of its beach tourism life cycle Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 8 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 Source: Own design using data from www.mof.gov.cy 2016 Arrivals of tourist in the Republic of Cyprus from 1980 to 2015 Tourism CY Findings ConclusionIntroduction
  • 5. Stagnation of Fordist product Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 9 Source: authors own photos Tourism CY Findings ConclusionIntroduction Strategic Plan for Tourism 2000-2010 • Should mark a turnaround of this Fordist top-down approach • Part of the repositioning strategy • Clear orientation towards regional governance approaches was declared: “Within the framework of Cyprus repositioning strategy each region will be called upon to prepare its own Regional Strategy. Each region will have its own vision regarding its tourist growth and will focus on developing the right product to fit the needs of market segments it will choose to target” (CTO, 2000, p. 7). Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 10 Tourism CY Findings ConclusionIntroduction
  • 6. Cyprus tourism map Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 11 Source: Author’s design based on: www.mapsfordesign.com Nicosia Limassol Agia Napa Morphou U. K. Sovereign Base Area U. K. Sovereign Base Area United Nations Buffer Zone United Nations Buffer Zone Paphos Polis Akrotiri PAPHOS LIMASSOL LARNACA KYRENIA Mediterranean Sea Mediterranean Sea NICOSIA FAMAGUSTA Kyrenla Paralimni Famagusta Larnaca 0 10 20 km   Troodos Gebirge r r r Mesaoria     9 9 9 9 9 Salamis Choirokoitia Kourion St. Hillarion Buffavento Kantara Varosha _ _ _ _ _ _ Tourism CY Findings ConclusionIntroduction Rural … cultural … natural … tourism Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 12 Tourism CY Findings ConclusionIntroduction Source: authors own photos
  • 7. Cyprus in the stagnation phase of its beach tourism life cycle Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 13 Source: Own design using data from www.mof.gov.cy 2016 Overnight stays in different regional destinations 0 2 4 6 8 10 12 14 16 18 20 Mio.Overnightstays Troodos Nicosia Paphos Limassol Larnaka Agia Napa/Paralimni Tourism CY Findings ConclusionIntroduction Cyprus tourism map Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 14 Source: Author’s design based on: www.mapsfordesign.com Nicosia Limassol Agia Napa Morphou U. K. Sovereign Base Area U. K. Sovereign Base Area United Nations Buffer Zone United Nations Buffer Zone Paphos Polis Akrotiri PAPHOS LIMASSOL LARNACA KYRENIA Mediterranean Sea Mediterranean Sea NICOSIA FAMAGUSTA Kyrenla Paralimni Famagusta Larnaca 0 10 20 km   Troodos Gebirge r r r Mesaoria     9 9 9 9 9 Salamis Choirokoitia Kourion St. Hillarion Buffavento Kantara Varosha _ _ _ _ _ _ Tourism CY Findings ConclusionIntroduction
  • 8. Identification of the core constraints • Delimitations of regional destinations perpetuating the dependency of the hinterland Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 15 Tourism CY Findings ConclusionIntroduction Wine Routes Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 16 Source: CTO 2008
  • 9. CSTI: Discover the real Cyprus (Village routes) Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 17 Source: csti-cyprus.org 2008 1. Limassol District 2. Larnaka (Orini) District 3. Famagusta District (Red Earth and Windmills) 4. Troodos Green Heart of Cyprus 5. Pitsilia 6. North Pafos and Akamas Identification of the core constraints • Delimitations of regional destinations perpetuating the dependency of the hinterland • Incomplete, partial decentralisation Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 18 Tourism CY Findings ConclusionIntroduction
  • 10. Incomplete, partial decentralisation • Six regional boards initiated by the CTO since 2002 • Regional strategy studies commissioned (financed) by the CTO • No substantial own funding for the regional tourism boards • About 10,000 € for material expenses from the CTO • Regional tourism brochures still published by the CTO • Local tourist information offices still run by the CTO => Perpetuation of the centralised approach Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 19 Source: CTO Tourism CY Findings ConclusionIntroduction Identification of the core constraints • Delimitations of regional destinations perpetuating the dependency of the hinterland • Incomplete, partial decentralisation • Dominance of SMEs in the hinterland with low level of professionalism Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 20 Tourism CY Findings ConclusionIntroduction
  • 11. Dominance of SMEs in the hinterland with low level of professionalism • Most of the stakeholders who run the tavernas, guest houses, craft- shops and activity-oriented agencies hold small-scale, family-run enterprises that sometimes lack the competencies (Peters, 2005) required for providing sophisticated post-Fordist products. • The regional core competencies (Pechlaner et al., 2006b) have only been developed to a small extent. • Regarding stakeholders’ strategic orientations, most can be described as “defenders” and “reactors”. • Avci et al. (2011) consider these types of stakeholder to be typical of developing countries. • Occupancy rates of about 15 per cent (Kaufmann et al., 2012, p. 269) = weak performance of rural tourism accommodation facilities • Booking platform by the CTO, but without any further option for activities (www.agrotourism.com.cy) Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 21 Source: CTO Tourism CY Findings ConclusionIntroduction Identification of the core constraints • Delimitations of regional destinations perpetuating the dependency of the hinterland • Incomplete, partial decentralisation • Dominance of SMEs in the hinterland with low level of professionalism • Isolated actions by potential leaders Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 22 Tourism CY Findings ConclusionIntroduction
  • 12. The role of potential leaders • Regional tourism boards only partially assume the role of leaders • SMTE incapable of organising themselves • Can “prospectors” and “analysers” (Avci et al., 2011) be identified which could play a crucial role as innovation motors ? Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 23 Source: CTO Tourism CY Findings ConclusionIntroduction Innovative stakeholders as possible leaders? Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 24 Cyprus Villages at Tochni (www.cyprusvillages.com.cy) Source: authors own photos Ayii Anargyri Hotel in Miliou (www.aasparesort.com) Library-Hotel in Kalavassos (libraryhotelcyprus.com)
  • 13. The role of potential leaders Expert interviews with the owners or managers of these enterprises • They do not cooperate with the regional tourism bodies. • Explicitly distance themselves from regional tourism development activities and develop their products independently. • Rely on their own ability to promote their products. • Succeeded in developing a niche in the tourism market • Do not want their USP to be disseminated throughout the region • Organisational distance from regional and national structures is explained by the structural deficits and weak consideration of (post- Fordist) products • See no advantage in cooperating as long as the structural conditions remain the same. • Lack of potential win-win situations is the main reason why they act independently Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 25 Tourism CY Findings ConclusionIntroduction Conclusion Andreas Kagermeier AAG 2016 (SFO): Destination Governance Cyprus 29 March – 2 April 2016, Slide 26 • Top-down approach applied by the responsible public body at the national level is only partly facilitating the development of self-organised regional structures • Dominant private stakeholders – representing the traditional sun-and-sea segment – not willing or capable of assuming a leadership role in the reorientation process • Providers of new innovative products are often too small and poorly organised to achieve competitive product quality and to gain market access • Innovative stakeholders who have the capacity to invest in new products independently and to gain market access are acting in an isolated fashion. • So they fail to act as innovative entrepreneurs who could lead the destination’s restructuring process. • Leadership approaches do not develop by themselves. • If DMOs are unable to assume the leadership role on their own, requiring masterminds from the private sector to implement leadership-based strategies, adequate destination management structures are an indispensable precondition. Tourism CY Findings ConclusionIntroduction