Tourism Development in K端hlungsborn, Germany A Private Sector Perspective
By Albrecht Kurbjuhn, Hotel Polar-Stern for the VisitDenmark Study Mission to K端hlungsborn, October 1, 2007
Tourism Development in Kühlungsborn A Private Sector Perspective 1. Hotelinvestment at the German Baltic Sea Why Kühlungsborn? 2. Business Development 1993 – 2007 (town/hotel) Amazing progress in relatively short time 3. Remaining Challenges Bankruptcies and unemployment persist 4. Strategies for a Bright Future Ideas for meeting major challenges
Hotelinvestment at the German Baltic Sea Why Kühlungsborn? · Dagmar and Albrecht Kurbjuhn discovered Kühlungsborn in July 1992 on a holiday trip Sand, sea, forest, 30° temperature, cicadas in GERMANY?! This fact is still unknown to millions of Germans who traditionally travel to Mediterranean! · Derelict but beautiful historical architecture! Vacant villas demanding to be restored · Financial support from gov‘t for entrepreneurs in Eastern Germany after Reunification Chance of a lifetime for establishing own business! Business set up on Sept. 1, 1993
Hotelinvestment at the German Baltic Sea - Why K端hlungsborn? Grand tourism tradition since 1800s - past successes proof of potential!
Hotelinvestment at the German Baltic Sea - Why Kßhlungsborn? Clear and varied city structure – choice between serenity and high life!
Hotelinvestment at the German Baltic Sea Why KĂźhlungsborn?
Centrally located between Hamburg, Berlin, Copenhagen and MalmĂś
Very important for stays of short duration (2-5 days)!
Hotelinvestment at the German Baltic Sea - Why Kßhlungsborn? Intact, comprehensive collection of historic buildings – atmosphere!
Hotelinvestment at the German Baltic Sea - Why Kßhlungsborn? Intact and varied environment – the right place for any weather!
Business Development 1993 - 2007: Amazing progress in a short time! Town of Kühlungsborn with steady infrastructure development... with an emphasis on quality rather than speed! · Sanitary facilities along the promenade every few 100 metres · Pier for fishing and leisure boating (first after Reunification) · Modern telecommunication systems / road improvement (A20!!) · Waste water canals / water treatment systems (in cooperation with neighboring towns) · Promenade upgrade over 3.7 kilometers (longest in Germany) · Restoration of historic buildings - attention to detail (mainly private sector; public support through building permits for additional capacity) · Marina for 400 boats with successive F&B/shopping infrastructure · 5-star Kempinski Hotel in Heiligendamm (6 km) · Golf course in Wittenbeck (3 km) Aside: Founding of „TSK“!
Business Development 1993 - 2007: Amazing progress in a short time! Town of K眉hlungsborn with steady increase in guests! 1995
2006
Capacity (beds)
3.695
14.000
+279%
Arrivals
98.071
341.345
+248%
Room nights
432.843
1.822.249
+321%
Average stay, days
4.4
5.3
+20,5 %
路 About 50:50 from Eastern/Western Germany 路 < 3% from abroad!
Business Development 1993 - 2007: Amazing progress in a short time! Hotel Polar-Stern with infrastructure improvement in phases! 1993 – Purchase of property 1994 – Renovation of hotel 1995 – Build of „Grillarium“ 1996 – Build of conference rooms 1998 – Build of penthouse 2000 – Build of 3 hotel-apartments 2006 – Major renovations Capacity from 40 to 50 beds F&B from 70 to 140 seats Additional outside F&B capacity Infrastructure for groups, conferences/trainings, family and company festivities, cultural events (concerts, exhibitions) No more room for wellness!
Business Development 1993 - 2007: Amazing progress in a short time! Hotel Polar-Stern with significant revenue growth! · Revenues: 98% increase 1994 2006 (50% hotel; 50% F&B) · Occupancy based on 365 days in 2006: 57,1% (rooms); 56,7% (beds) · Employees: 8 full time year-round (very low fluctuation!) 4 apprentices year-round 2 full-time summer season Drivers:
· Improved accessibility from affluent cities of Hamburg, Bremen and Hannover (Autobahn A20) · Improved infrastructure of hotel/city · Improved knowledge of region in Southern Germany (marketing and by word of mouth)
Remaining Challenges - Bankruptcies and unemployment persist Most prominent problems 1. Significant seasonality persists – three „seasons“: High season: Medium season: Low season:
Mid-June – Mid-September (80-100%) Easter – Mid-June and Mid-Sept. – End of Oct. (40-70 %) November – March, except Christmas/New Year (20-30 %)
2. Relatively low avg. spending/guest (≈ € 60,-/day incl. accomodation) 3. Low tourism marketing expenditures in Mecklenburg-Vorpommern (much less per room night than in most other Länder) 4. Low cost air carriers to major European cities/Mediterranean (could be a benefit, too – they fly in both directions!) 5. Lack of creativity, innovation and quality in public/private sectors!
Strategies for a Bright Future - Ideas for meeting major challenges Improving occupancy November – March (Polar-Stern examples) 1. Offer of unusual/creative packages at attractive prices Mini-holidays (3 nights) with Malt Whisky tastings (Excellent start with „Happy Days“ in Denmark!)
Over 600 rooms nights booked Mid Oct. – Mid-December!
Strategies for a Bright Future - Ideas for meeting major challenges Improving occupancy November – March (Polar-Stern examples) 2. Long-term effect: Artist invitation program „Art at the Baltic Sea“ · Foreign artists invited to free room and board in winter months (6 – 8 weeks or even longer)...rooms aren‘t occupied, anyway! · Artist absorbs impressions of new surroundings and integrates them into the work he does in the hotel · Art exhibition at end of stay in the hotel Involvement of embassies and cultural institutions in artist selection process (program as catalyst for new target groups), e. g. Chinese Embassy, Ukraine Consulate, Kyoto Art Centre Guests meet interesting people, participate in work shops! Exhibitions enhance event calendar in winter! Media coverage! Artists and their work highlight our region in their countries!
Strategies for a Bright Future - Ideas for meeting major challenges Improving occupancy November – March (Polar-Stern examples) 2. Long-term effect: Artist invitation program „Art at the Baltic Sea“
Strategies for a Bright Future - Ideas for meeting major challenges Improving occupancy November – March (Polar-Stern examples) 3. Initiation of special events in cooperation with Clubs and Societies Verein der Freunde des schottischen Malt in Mecklenburg e. V. Clan MacLeod Gesellschaft Deutschland e. V. Evangelische Akademie Rostock („Dialogische Begegnungsseminare“)
Strategies for a Bright Future - Ideas for meeting major challenges Improving occupancy November – March (SeaWell Center Kühlungsborn) 4. Providing access to the Baltic Sea even in winter time (vision) Architecture: gmp Architekten/Hamburg
Direct access to sea from wellness-hotel (e. g. after sauna) Spectacular architecture to capture imagination of guests/media 240 metres out to sea; no impact on historic fabric of the old town
Strategies for a Bright Future - Ideas for meeting major challenges Raising avg. spending per guest â&#x20AC;&#x201C; Increase percentage of foreign guests! Basic consideration: Price levels for room and board abroad are higher; willingness to pay a good price for good quality more pronounced (good example were foreign journalists visiting during G8 Summit!)
F&B expenditure per person increased by over 50%!
Strategies for a Bright Future - Ideas for meeting major challenges Raising avg. spending per guest – Increase percentage of foreign guests! Founding of the „Initiative Internationaler Tourismus e. V. “ in 2007 to specifically address foreign target groups: Purely private initiative of business people who have extensive experience and contacts abroad and language skills Partner for public bodies (like Tourismusverband) for product development and co-funding of marketing activities (PPP); partner for similar initiatives in other Baltic Sea countries Activities include publishing of foreign language brochures („Germany‘s Grand Baltic Sea Coastline“), own website (www.german-baltic-sea.com), artist program, road shows, public relations initiatives, trade fair visits, etc. Special competence in spoiling foreign guests (hopefully!)
Strategies for a Bright Future - Ideas for meeting major challenges Raising avg. spending per guest – Increase percentage of foreign guests! Improved cross-border cooperation in promoting the Baltic Sea as a holiday alternative to the Mediterranen! Climate change trends („comfort zone“ moving northwards) Health awareness (e. g. dangers of excessive sun) Demographics (older people apprehensive about flying; circulatory problems associated with very high temperatures)
Thank you very much for your attention! Any questions?