Even though most Danes are interested in Danish destinations that offer nature, only a small share have sustainable solutions as a travel motive when choosing their destination. Looking at the preferences of domestic tourists, during the holidays in 2020, every other Dane said that relaxation and the opportunity to recharge were important to them when choosing their destination in Denmark. Furthermore, 28 per cent of domestic tourists sought safe and easily accessible destinations. Only a small share of domestic tourists (6%) prioritised green and sustainable solutions as a travel motive. This contrasts with the types of destinations that domestic tourists in Denmark are interested in since nature was a crucial travel motive for the Danes’ choice of their holiday destination in 2020. 61 per cent of Danes chose holiday destinations based on nature, beaches, and coasts. Moreover, one in three Danes saw the possibility to hike and take long walks in nature as an important factor when choosing their destination.
The COVID-19 pandemic has been an eye-opener for many Danes in terms of possibilities for domestic tourism, according to the interviewee. COVID-19 has entailed a higher interest in new aspects of Denmark and being a tourist in Denmark. The interviewee explains that there is a possible trend of higher prestige in staying in Denmark and spending holidays at home.
1.3 Future of domestic tourism in Denmark
According to the interviewee, it is predicted that Denmark will achieve an all-time high in the number of domestic overnight stays in 2022, with a significantly higher number compared to the pre-pandemic years. In addition to the COVID-19 pandemic, the following factors may have contributed to the high number of domestic overnight stays in 2022: the SAS strike, Russia’s invasion of Ukraine, and price shocks on products and services.
As for the future of domestic tourism in Denmark, the interviewee highlights two influential factors. Firstly, the pandemic has been an eye-opener for Danish tourists regarding the potential disadvantages of travelling abroad, including the uncertainty of being on holiday in other countries during times of international crises. Consequently, the COVID-19 pandemic increased the attractiveness of travelling domestically and experiencing Denmark.
Secondly, the sustainability aspect may also influence the outlook for domestic tourism. The COVID-19 pandemic has reinforced the trend where people have started to consider the necessity of long-distance travel in correlation to its climate and environmental impact.
According to the interviewee, there is good potential for domestic tourism in Denmark. The pandemic has brought forth many innovative tourism products, making domestic tourism a higher priority for different stakeholders in the tourism industry. For example, Danish Destinations is active in marketing Denmark to domestic tourists. As the Danish national tourism strategy underlines the strategic importance of domestic tourism, it points to the need for more and better domestic tourism products to develop Denmark’s national tourism sector.
2. Main stakeholders and coordination of domestic tourism activities
In Denmark, the Ministry of Industry, Business, and Financial Affairs oversee the tourism industry. The Ministry collaborates with several other ministries in issues concerning the tourism sector, namely the Ministry of Environment and Food, the Ministry of Transport, Building and Housing, the Foreign Ministry, and the Ministry of Culture.
The multi-level governance system for coordinating domestic tourism activities in Denmark can be viewed as a hierarchy. On top is the Ministry of Industry, Business and Financial Affairs, along with the Danish National Tourism Forum and the Danish Tourism Board. The latter can be best understood as different task force groups that, e.g., are in charge of developing the national tourism strategy. Below the top level are four national bodies – three development organisations and one marketing organisation. These are The Danish Coastal and Nature Tourism Organisation, the Danish City Tourism Organisation, Meet Denmark, and Visit Denmark. At the local level, the coordination is centralised through Danish Destinations.
According to the interviewee, Denmark primarily focused on inbound tourism prior to the COVID-19 pandemic. The interviewee goes as far as to state that the domestic tourism market was neglected before the pandemic. During the pandemic, greater interest was given to domestic tourism, as the domestic tourism market grew bigger. In 2020, Visit Denmark and Danish Destinations had a shared responsibility for domestic tourism marketing. In 2021, Danish Destinations took over most of the responsibility for domestic tourism marketing. In Denmark’s strategy for tourism, it becomes evident that domestic tourism is prioritised going ahead, as the domestic market is specifically mentioned as an important market.
When looking at funding, the two main public funding bodies are the government and the Danish Board of Business Development. Via the Danish Board of Business Development, destinations can apply for public funding in support of development activities.
3. Best practices
This chapter presents two best practice case examples of efforts aimed at recovering and strengthening the Danish tourism industry, including the promotion of domestic tourism, namely the Kickstart Danish Tourism 2020 project (case 1) and a summer package initiative (case 2).
3.1 Case 1: Kickstart Danish Tourism 2020 project
The Kickstart project was a national effort that was active from May 2020 until January 2022. The project was time-limited, but the director of Danish Coastal and Nature Tourism has emphasised that the project also focuses on the post-pandemic period as it strengthens the long-term competitiveness of the tourism industry. The project can therefore be seen as an approach to solving challenges during COVID-19, as well as a long-term focus on strengthening companies; both in terms of resilience during a possible future crisis, but also in terms of competitiveness in the market.
The effort aimed to help kickstart revenue in the Danish tourism industry, and at the same time, to prepare the industry for the new needs of tourists in the wake of the COVID-19 pandemic. The needs of tourists changed during the pandemic, as domestic tourists tend to have different preferences than international tourists. Therefore, businesses needed to reshape their offers to prepare for the tourists’ new needs. This was done by, e.g., developing attractive businesses and products for domestic tourists. The project utilised data that can help companies and tourist organisations to better understand domestic travel- and behaviour patterns, such as holiday preferences, trends, visitor spending, and visitor behaviour. In this instance, knowledge was generated concerning (i) festivals and events during and after the pandemic, (ii) if near-cation would be a one-off phenomenon or the way forward, and (iii) innovation on food scenes during and after corona.
The target group was tourism-linked businesses and destinations around the country. The beneficiaries were domestic tourists.
Regarding the project’s background, the Danish Board of Business Development, which focuses on all types of tourism, decided that the secretariat of the Danish Board of Business Development should initiate dialogue with the tourism industry about how the tourism funds should be implemented in 2020. The dialogue aimed to ensure that the earmarked funds for tourism in 2020 considered the new situation caused by the pandemic, and that they met the needs of the tourism industry as relevant and as quickly as possible.
The secretariat of the Danish Board of Business Development met with key stakeholders in the tourism industry, such as Visit Denmark, the national tourism development organisations (i.e., The Danish Coastal and Nature Tourism Organisation, the Danish City Tourism Organisation and Meet Denmark), local DMOs, Local Government Denmark, and relevant trade and industry associations. In summary, the main messages from these actors were:
The tourism industry has been hit hard, and it will take time to get the industry back on its feet. Especially small tourism companies experience great risk.
Speed is essential, which is why there is a desire for a fast process to get the funds to work, preferably before the summer holidays of 2020.
The Danish domestic market is the only market for the tourism industry in the short term. There is a desire from all actors for one joint national marketing project with a focus on holidaying in Denmark.
It is difficult to find co-financing from private actors, so it is proposed to raise the subsidy rate for marketing from 25 per cent to 50 per cent or higher.
The Danish Board of Business Development must continue to focus on destination development to ensure new tourism products and services that benefit companies, including supporting the consolidation of DMOs.
The Danish Board of Business Development decided to support two actions in response to the above points, namely a common marketing campaign across the 19 DMOs and Visit Denmark, and the Kickstart project that is in focus here.
3.1.1 Activities
The Kickstart project was a nationwide project, using decentralised business promotion funds to kickstart and stimulate Danish tourism in light of the COVID-19 pandemic, with a focus on managing the shift in visitor behaviour and the need for extra safety and security. The project included the following 11 initiatives with the common aim of helping tourism operators to kickstart tourism consumption in coastal and nature tourism, city tourism, and business and meeting tourism in Denmark:
Knowledge for Kickstart.
Reframe and more-sales on the West Coast.
Back to Business – back on track.
Upgrading and training of the tourism profession (e-learning).
Digital solutions and tourist information initiatives.
Tourist Stay Safe.
Outdoor and nature-based experience development.
Kickstart of Danish business and meeting tourism.
Kickstart cultural tourism.
Kickstart innovations.
World-class digital infrastructure.
All of the planned initiatives were implemented according to the interviewee. In terms of results, the project produced and delivered new knowledge on tools for managing travel and behaviour patterns, tools and concepts for business development and product adaptation, market testing of new concepts and products, as well as marketing efforts.
According to the project report, the project has contributed to effects, such as growth in the number of domestic overnight stays, growth in tourism turnover, and the creation and retention of jobs. Outside the project period, growth in international overnight stays is also expected.
3.1.2 Organisation and stakeholders
Visit Aarhus was the project owner and provided the overall project management. The project partners were Danish Destinations, Danish Coastal and Nature Tourism, Danish Metropolitan Tourism, and Meet Denmark. Each partner was represented in the project steering committee. In addition, there were several collaborative partners, including Visit Denmark, the country’s business houses, knowledge institutions, and interest organisations.
3.1.3 Funding
The project was co-financed by the decentralised business promotion funds (DEM). A total of DKK 15 million was allocated from the DEM. The total project funding amounted to approximately DKK 33 million. The rest of the funds were announced as a part of the ordinary application round on the yearly fund for local tourism development projects.
3.1.4 Lessons learned
Although an external evaluation of the Kickstart project is not planned, there is a final report. The project can be regarded as a success due to its impact on strengthening cooperation between participating destinations. The project's final report emphasises that the project has contributed to the growth of domestic overnight stays, growth in tourism turnover, and the creation and retention of jobs. After the project period, the project group also expects a growth in inbound overnight stays as well.
The main takeaways and lessons learned from the projects were:
Even though it was expected that the COVID-19 pandemic would prove to be a challenge, it proved more difficult to navigate than expected. Not only did the pandemic create unpredictability with restrictions being enforced and lifted with short notice, but it also made it more difficult to plan activities. However, the pandemic also strengthened project participants' abilities in navigating unfamiliar situations, their digital skills, and their competence in digital transformation.
Tight and focused project management in cases where several destinations were involved was essential for the successful completion of activities within the 11 initiatives.
Knowledge-sharing has been crucial in such a geographically wide and large project as the Kickstart project. The ongoing sharing of knowledge has been important to ensure that the experiences and results from activities could be used as lessons learned in the planning and implementation of new activities.
New values and collaborations in digital platforms were a takeaway. Through this project, digital opportunities in the form of hybrid meetings, e.g., have become a new competitive parameter.
A takeaway regarding Kickstart outdoor is that outdoor activities have been a means of learning. The ambition of this activity has been to equip small companies to exploit their development potential within the outdoor area. Since smaller companies have not had the opportunity to make time for new thinking, the size of companies has been a factor in whether COVID-19 has become a catalyst for innovation or not. The project has shown that there is potential in combining outdoor tourism with other business areas, and thereby targeting new domestic target groups.
A lesson learned from the initiative “tourist stay safe” was the new reality of guests during and after the pandemic. The Director of Visit Nordsjælland highlights that they are navigating a new reality for guests, where safety and hygiene are strong competitive parameters. In this context, new digital aids, and new planning at hotels have been created, so that, e.g., cleaning is undertaken at times when the guests are not present.
Beyond its intital scope, the next phase of the Kickstart project has started in 2022 with four initiatives. The initiatives include (i) Kickstart Danish business and meeting tourism 2.0, (ii) Outdoor- and nature-based experience development 2.0, (iii) Reframe and additional sales on the West coast 2.0, and (iv) Knowledge on time 2.0.
3.2 Case 2: Summer package
The summer package project was initiated by the government and a large majority of the parties in the Danish Folketing. It was launched nationally in the summer of 2020 as a recovery package for different areas of culture. The package aimed to boost the Danish economy after the pandemic as part of a larger effort to phase out the COVID-19 bailout packages and replace them with comprehensive recovery packages. The aim was reached by nudging domestic tourism consumption through, e.g., reduced prices for museums and free ferry rides.
The target group for the project was cultural institutions, transport organisations, sports associations, and more. The beneficiaries of the project were domestic tourists. As the aim was to boost the Danish economy, the project had mainly a short-term approach where the initiatives were meant to directly affect, e.g., visitors to the islands.
The project used tools, such as subsidisation, infrastructure development, and expanding the opening hours of centres to reach their aim.