Data-Driven Innovation: Lesson from the CulTourData Project in Italia

25 junio, 2024by novamanto.com

In the post-pandemic era, cities that boost their economy through tourism face numerous challenges. These include the need to improve the user experience and to innovate in their actions to attract tourists in a context where digitalization and the use of data have become fundamental tools. The COVID-19 pandemic has exacerbated these challenges, leading to a shift in the preferences of tourists, who now seek more personalized and safer service. “Experiential Tourism” has gained popularity, focusing on activities that allow visitors to interact more deeply with local culture. In this context, small and medium-sized enterprises (SMEs) promoting tourism in their territories face significant challenges, between that more figured such as limited access to finance, lack of technological resources, and the need to adapt quickly to new tourism market demands. Despite these difficulties, SMEs are crucial to an “economy in transition,” representing a vast network of knowledge and tradition essential to these tourist cities’ cultural identity. The digitization of services and the use of data hold immense potential to transform tourism, offering a beacon of hope for SMEs to deliver more personalized and efficient experiences. The visibility provided by technological tools is an opportunity for those along the entire sector’s value chain who require support to restart their activity – from new destinations around rural communities to destinations with high infrastructure development.

This article collects lessons from the “Training and Knowledge Transfer” services for capacity-building in multidisciplinary teams participating in the CulTourData project in Italy between September 2023 and February 2024. It addresses the transformative potential of data in the tourism industry, especially in small and medium-scale economies. In addition, it will explore the competencies that tourism SMEs are cultivating as a strategic response to current market demands and the challenge of developing new tourism city models, further illustrating the practical implications of this research.

Tourism Recovery in a Volatile Global Context

In 2022, international tourism made significant strides towards recovery, reaching 63% of pre-pandemic levels. This recovery was led by Europe and the Middle East, which surpassed expectations due to high pent-up demand and the relaxation of travel restrictions in many countries. Over 900 million tourists embarked on international travel, which doubled from 2021, although it remained 37% below the 2019 levels. With 585 million arrivals, Europe emerged as the top destination, reaching almost 80% of pre-pandemic levels. The Middle East witnessed the most significant relative increase, with 83% of pre-pandemic arrivals. Africa and the Americas recovered approximately 65% of their visitors, while Asia and the Pacific only reached 23% due to tighter restrictions. Sub-regions such as Western Europe (87%) and the Caribbean (84%) were closer to their pre-pandemic levels, indicating a promising recovery trend.

2022 also saw a strong rebound in tourism spending, with many destinations recovering pre-pandemic revenue. By 2023, international tourism is expected to continue its recovery, primarily driven by pent-up demand in Asia and the Pacific. According to a UNWTO Expert Panel survey, 72% of respondents anticipate an improved performance in 2023, although 65% believe tourism will not return to 2019 levels until 2024 or later. UNWTO projects that tourist arrivals in 2023 could reach 80-95% of pre-pandemic levels, with Europe and the Middle East leading the way. However, economic and geopolitical risks remain, and tourists are expected to seek better value for money and prefer nearby destinations due to the challenging economic environment.

Figure 2

Source: UN TOURISM

The World Tourism Organization (UN Tourism) is the United Nations agency promoting responsible, sustainable, and universally accessible tourism.

Innovate or In-no-vate Change

The CulTourData project is an innovative initiative funded by the European Commission’s COSME program to promote data-driven innovation. The project targets tourism SMEs in the European Capitals of Culture. It helps them to use data analytics as part of their business strategy and create a business approach that combines tourism, culture, creativity, and digital technology. The public-private partnership leads the project and comprises eight partners representing seven countries. It includes different entity profiles among Cultural Capitals SMEs, Tourism and CCI clusters, a Public Tourism Agency, a Business Incubator, a Public Business Support Organization/Public Authority, a University, and the European Network for Accessible Tourism non-profit association. At the Italia level, the project was led by Basilicata Creativa, an artistic and creative industry cluster in the Basilicata Region, Italy. The drive for sustainable economic development in a post-pandemic scenario has led to rethinking tourism market strategies. Through innovation, these cities can find solutions that attract visitors, benefit local communities, and promote a balanced coexistence between tourism and everyday life. The CulTourData project, with its innovative approach, has been instrumental in this transformation. Prominent examples of this transformation include Chemnitz and Košice, each with their unique approach to tourism and culture.

Chemnitz, historically an industrial hub in Germany, has undergone a remarkable transformation in its urban and economic landscape. With deindustrialization, the city faced the challenge of reinventing itself, focusing on culture and creativity. In recent years, Chemnitz has developed a vibrant cultural scene with numerous restoration and reuse projects of industrial spaces. Initiatives such as converting former factories into cultural and entrepreneurship centers, like the former Spinnerei, which now houses the Kraftwerk cultural center, have been instrumental in revitalizing the city. The CHEMNITZ ZIEHT in the town of Chemnitz has played a crucial role in the CulTourData project, acting as the central business support agency for the city and being co-responsible for the realignment and re-founding of the Destination Marketing Organization for the Chemnitz-Zwickau region. This entity leads the ECoCs Policy Lab and is fully involved in managing the ECoCs Watch. The diversity of nationalities and cultural intersections have been vital in revitalizing Chemnitz and creating an environment conducive to cultural tourism. The European Union has significantly supported these rehabilitation efforts, underlining the importance of international collaboration.

Košice, Slovakia’s second-largest city, is an inspiring example of how a city can find its tourism vocation through community empowerment and spatial appropriation. During its year as the European Capital of Culture, Košice focused on creativity and revitalization. Projects such as transforming a former swimming pool into an art gallery (Kunsthalle) and converting former military warehouses into the Kasárne Kulturpark were crucial to its cultural success. With a rich cultural offer of festivals, art galleries, and historical events, Košice has encouraged the active participation of its citizens in promoting and managing tourism. This approach has strengthened the citizens’ stance towards new tourism challenges and changed the social psychology towards the customer. Košice Turizmus, a Public Tourism Agency, has been a critical partner in the CulTourData project. Its mission, deeply rooted in Košice’s experience as the European Capital of Culture, includes the management of the support scheme, the ECoCs Watch, and the Policy Lab.

Incorporating advanced technologies has been essential to this development of Košice and Chemnitz, facilitating the efficient promotion and management of tourism. Through digital platforms, mobile apps, and social media, the visibility of their tourist attractions and cultural events has been enhanced, reaching a broader and more diverse audience. In addition, data analytics systems have provided tourism authorities and businesses with valuable information on tourists’ preferences and behaviors, allowing them to adjust their strategies and offers to meet market demands better. These technological innovations have optimized the visitor experience and empowered the local community, promoting greater participation and collaboration in tourism development.

CulTourData: “Building Capacities and Competencies” in Italy

The CulTourData project in the European context has outlined a roadmap toward digitalizing data-driven cultural tourism, promoting a collaborative ecosystem applied to urban and rural contexts. Thirteen tourism SMEs located in five different regions of Italy participated in Italy: Basilicata, Calabria, Campania, Tuscany, and Lazio with a diversity represented mainly by hotel services (5), agrotourism (1), tourism services (6), and social cooperatives (1). It is essential to highlight the gender perspective that characterized this project, as six of the thirteen participating organizations were run by women.

As a specialized consultant, my role in this project was to “build capacities” to enable each team to develop products such as digital marketing, specialized tourist itineraries, tourism trend analysis based on visitor profiles, citizen service management, digital galleries, graphic narration, and corporate communication. Various data sources were used for these analyses, including customer feedback, Google surveys, creative quizzes, sensory workshops, and interviews. Each team consisted of a representative from the tourism organization, a creative or artist, and a data expert.

To achieve the CulTourData objectives, I employed a methodology focused on mentorship, support, and monitoring, which was developed in two phases with a “slow mentoring” approach. In the initial stage, I adopted qualitative criteria to understand each team’s project idea, analyzing variables such as objectives, target audience, risks, resources, sustainability indicators, and communication channels. This first phase provided insights into the proposals’ focus, revealing the project’s multidisciplinary nature and impact on tourism. Four main focuses were identified: digital galleries built from narrative and experience, slow tourism supported by digital marketing and digital service platforms, security management using QR Codes, and scientific dissemination through sensory experiences.

In the second phase, the goal was to establish quantitative metrics to ensure the holistic and sustainable development of the projects. It was essential to focus on four key areas: Capacity Building, Digitization, Cross-Sector Collaboration, and Long-term Sustainability. Firstly, Capacity Building focused on collecting customer feedback to evaluate service quality and measure community engagement and social impact. Secondly, digitization involves assessing the coherence and feasibility of the proposed digitization plans and measuring the participants’ adoption of new digital tools and platforms. Thirdly, Cross-Sector Collaboration focuses on creating and expanding collaborative networks among sectors such as tourism, culture, and technology, identifying new projects and initiatives, and measuring the generation of innovative ideas and the level of engagement of different stakeholders. Finally, Long-term Sustainability evaluated the project’s sustainability concerning the collection, frequency, and variability of static and dynamic data used for digital product projection. These interconnected areas ensured the proposals were effective, efficient, and adaptable to changing needs, promoting comprehensive development.

Figure 3

Source: Own elaboration

This image represents the prototype of the project proposal, showing the proportional distribution of the four critical criteria. The top priority, based on the highest number of projects, is the “Adoption of Digital Tools” under the Digitalization category, with a score of 9 projects.

Figure 4

Source: Own elaboration

The project that scored the highest overall is FLOWERY DATA, with a total score 9.0. The chart “Project performance trends by category” provides information on the performance of each project in the different categories. The graph shows a clear emphasis on digitization and cross-sector collaboration in the majority of projects. This reflects the strategic priorities in enhancing digital capabilities and fostering collaborative efforts. Lower scores on Long-term sustainability indicate a potential area for improvement. Projects may need to incorporate more sustainable practices and focus on long-term impacts. Projects such as “FLOWERY” and “Bacco” are very comprehensive and score in several categories, while “T. Celeste” lacks contribution in several key areas.

Figure 5

Source: Own elaboration

The graph shows the scores of different projects according to various quantitative criteria. The last bar, “Total Score,” represents the cumulative score of each project by adding up all the quantitative criteria. It can be seen that some projects score significantly higher than others when all criteria are considered together. This visualization lets you identify which projects perform better based on the quantitative criteria. Also, it will enable you to compare the relative performance of projects on specific criteria. The projects highlighted in the “Total Score” bar are the most successful overall, while the individual bars allow you to see strengths and weaknesses in specific areas.

In conclusion, innovation supported by technology is essential for tourism SMEs to overcome their challenges. On the one hand, users are looking for new, more personalized, and safer experiences, so responding to the needs of a sector emerging after the COVID-19 crisis undoubtedly requires paradigm shifts in management. To achieve this, aspects such as fostering public-private collaboration, adopting advanced technologies, applying digital marketing strategies, and developing diversified tourism products can be discussed. It will be essential to innovate in cultural tourism to ensure economic sustainability that can address the post-pandemic economic depression. At this point, it is crucial to enhance the capabilities of SMEs by adopting “long-term sustainability” criteria. As a result of the CulTourData project in Italy, this was the most minor weighted criterion in the proposals for digital products. On the one hand, this indicates flexibility in the use of data; on the other hand, it implies a more significant investment to sustain their digital products. Another aspect that will undoubtedly be difficult to address with medium- and long-term solutions is the socioeconomic interdependence of tourist cities. The coexistence of infrastructure that requires significant financing, a social economy characterized by SME networks, and a society interconnected by technology represents a considerable challenge for these cities, which, beyond the services they offer, must guarantee livability for their residents. In his work “Fitópolis,” Stefano Mancuso critically reflects on the models of “specialized cities,” warning that socioeconomic interdependence can weaken these territories. During the pandemic, tourist cities were the most affected, highlighting the need for diversification and resilience in their development models.

Advanced technologies can significantly improve tourist experiences, making destinations more inclusive and accessible, especially in rural areas. However, it is necessary to transcend these limits to break the paradigm of cities specialized in tourism and open up possibilities for territories that have strengthened their social, economic, and infrastructural development in this sector. Technologies must be available to develop new holistic models integrating economic, social, and environmental sustainability. Several key strategies can be considered to diversify the economy of tourist cities and develop them in a balanced way. Promoting complementary industries such as sustainable manufacturing reduces dependence on tourism and strengthens the local economy. Investing in green infrastructure, such as efficient public transport and renewable energy, improves livability and attracts more conscientious tourism. Fostering social innovation and community participation through cooperatives, local markets, and cultural spaces generates income and strengthens the social fabric. Integrating the promotion and preservation of local culture into the tourism offer enriches the visitor experience and strengthens local identity. Public-private collaboration in infrastructure and service projects improves the quality of life. Finally, intelligent tourism solutions can efficiently manage territorial resources.

The experiences of Chemnitz and Košice offer valuable lessons on how cities can reinvent themselves and thrive by addressing the paradigm of specialized territories. The CulTourData project in Italy has demonstrated strategies that can empower SMEs and enhance their capabilities. The methodological lessons from the CulTourData project can be replicated in other contexts to expand these good practices.

Author: Juana Perlaza Rodriguez

Principal Consultant and Founder Novamanto

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https://www.linkedin.com/posts/cwe-chemnitz_cultourdata-chemnitz-smes-activity-7153081545447075840-mZuj?utm_source=share&utm_medium=member_desktop

Main Photo Source: Juana Perlaza (2024). Vibrant modern depiction of the historic city of Matera, Italy, with data visuals and clear text. Generated with OpenAI’s DALL-E

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