Contemporary Destination Governance: A Case Study

Approach
Seefeld
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 Case 9

SEEFELD

Abstract: The Olympic Region of Seefeld is a popular winter but also a

strong summer destination. Together with the city of Innsbruck, Seefeld
hosted several Olympic mega-events and gained a strong reputation as an
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Olympic region, with a main focus on Nordic combination competitions.

Seefeld’s strengths include the Nordic cross-country skiing slopes that
provide the ideal basis for high-altitude trainings for top sports athletes.
Since 2006 five municipalities have been represented by the DMO, which
is managed by two CEOs. Individual and group behavior can be observed
in the region. Seefeld’s destination network displays a sufficient density
where a few key leading actors have come to symbolize the network nodes
linking different stakeholder groups. Keywords: Seefeld, merger, leading
actors, Olympic summer

INTRODUCTION

Seefeld is one of the most popular summer destinations in the European

Alps (Kämpf & Weber, 2005). It is also a destination with a strong diversity
of subregions. After the merger of its five major tourism communities and
organizations into the Olympic Region of Seefeld, the DMO had to find a
common strategic orientation for all these diverse areas. As in many other
newly merged destinations, some villages, such as the village of Seefeld,
became very strong, while other actors (e.g., Scharnitz) still do not attract
many tourists.

Contemporary Destination Governance: A Case Study Approach

Bridging Tourism Theory and Practice, Volume 6, 105 116
Copyright r 2015 by Emerald Group Publishing Limited
All rights of reproduction in any form reserved
ISSN: 2042-1443/doi:10.1108/S2042-144320140000006025
 106 Contemporary Destination Governance

According to Flagestad and Hope (2001), the role of DMOs in the

community model of destinations is “mainly concerned with promoting
cooperation” (p. 452) not only between the tourism players, but also
between other stakeholders within and outside of the destination. The
Seefeld DMO was established in 2003 and was thenceforth responsible for
supporting the development of a common strategy within the destination.
The goal is to gain sustained value creation for all stakeholders, including
the subjective wellbeing of locals, the satisfaction of tourists, and the
protection of natural and cultural resources (Müller, 1994). Economic pros-
perity is the key to reach this goal. However, DMOs must also focus on the
sustainable development of destination resources (Müller, 1994). This
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includes such tasks as the management of communication patterns and

information and knowledge transfer (Bieger, 2008). The case study of
Seefeld shows the role that DMOs can play in tourism development. It also
illustrates the role of external factors influencing the attitude of locals
toward cooperation within the destination.

COMMUNITY AND CORPORATE MODEL DESTINATIONS

Seefeld is located 30 km south of the German border and 20 km west of

Innsbruck, the capital city of the province of Tyrol (Figure 1). With an alti-
tude of 1,180 m, Seefeld is a popular winter and summer destination. It is a
member of “Best of the Alps,” the European collaboration of the twelve most
famous destinations of the Alps. “Best of the Alps” is a seal of quality and a
brand. It is synonymous with “sport, events, tourism and a way of life and
represents a whole range of different sports, such as walking and climbing,
downhill and cross-country skiing, ski touring, golf and mountain biking,
polo and water sports” (Best of the Alps, http://www.thealpineingredients.
com/best-of-the-alps/). Furthermore, Seefeld is cooperating with BMW in a
promotional strategy.
The destination Olympiaregion Seefeld encompasses the following five
villages: Seefeld (the largest village of approximately 3,250 inhabitants),
Leutasch (the second-largest village of approximately 2,220 inhabitants),
Reith and Scharnitz (both with between 1,250 and 1,400 inhabitants), and
Mösern/Buchen (with approximately 400 inhabitants). Tourism represents
the most important industry in the region; and businesses related to the
industry generate approximately 90% of income. Seefeld is strong in sum-
mer and winter tourism, with approximately one million overnights per year
(Statistik Austria, 2012). The most remarkable characteristics of Seefeld are
 Seefeld 107
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Figure 1. Locating Seefeld

its significantly high proportion of sunny periods during winter and summer,
its landscape, and the Olympic training facilities for cross-country skiing.
Nature and relaxation are the strongest tourism themes. The DMO has
developed six subthemes: family, golf, hiking, skiing, cross-country skiing,
and wellness. The DMO also plans to increase the market share in new mar-
kets, for example, by attracting Russian tourists.
Seefeld cohosted the Olympic Games in 1964 and 1976. In Seefeld the
competitions of cross-country skiing and Nordic combination took place.
In 1985 Seefeld again hosted the Nordic ski championships. In 2012
Seefeld, again in collaboration with Innsbruck, organized the first Youth
Olympic Winter Games ever. More than 1,000 young athletes (14 18 years
old) from 70 different nations took part in more than 60 competitions.
These milestones created a strong sports-oriented image for the destination.
Tourism grew strongly during the 1980s and 1990s. Since then, overnights
and arrivals have stagnated or even decreased slightly. For instance,
summer overnights of the municipality of Seefeld fell from 556,886 in 2000
 108 Contemporary Destination Governance

to 549,036 in 2012; and winter overnights fell from 573,114 in 2000 to

486,611 in 2012 (Tyrolean Government, 2013).

Historical Background and Development

In the 15th century Seefeld was an important pilgrimage destination and a

transit region for traders. During the period of the Thirty-Year War
(1618 48) the number of pilgrims visiting the destination decreased drasti-
cally. Commercial traffic across the Seefeld Pass was also declining at that
time because a grand market area (Mittenwald) was transferred into the city
of Bolzano. After the monks had to leave Seefeld, due to Emperor Josef II,
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who issued a decree abolishing nearly all Austrian monasteries, Tyrol

became part of the Kingdom of Bavaria. During the 1809 war Seefeld again
became a transit area for the French and Bavarians, who torched and
destroyed the village.
Since the 1920s Seefeld’s economy has been dominated by tourism. The
old Tyrolean village became famous as a sports area on a high plateau. The
Karwendel railway from Innsbruck to Reutte was constructed in 1912 and
caused an economic upturn by enhancing the accessibility of Seefeld.
Accessibility via highways from Germany and the south is excellent, and the
access routes are not threatened by mudslides or avalanches. The tourism
industry showed strong growth after World War I. The main target market
was Germany, accounting for 175,000 overnights in 1932. Skiing became
popular and several ski schools opened up. Skiing icons used their reputa-
tion to promote their own ski schools. One of them was Anton Seelos who
won the Alpine Ski Cup in Mürren in 1931 and third place at the Alpine Ski
World Cup in Innsbruck 1933. He was one of the most prominent Austrian
pioneers of alpine skiing and made Seefeld very popular.
Seefeld also became well known as a convention area in the 1940s.
International reputation was raised with the co-organization of the Olympic
Games in 1964 and 1976. One million overnights were recorded in 1970
(Olympiaregion Seefeld, 2013a). During the period 2000 04 the European
snowboard contest Air & Style was organized in Seefeld. Air & Style
attracted approximately 40,000 50,000 tourists and was first held in
Innsbruck in 1994. The annual event moved to Munich in 2005 and back to
Innsbruck in 2008. However, the five-year contract between Seefeld’s DMO
and the Air & Style organizers was not extended due to complaints about
the negative ecological and social impacts of this event. The target group
of young party-oriented snowboard fans did not match the existing market
segments and the associated image of Seefeld.
 Seefeld 109

In 2003 the villages of Leutasch, Scharnitz, Reith, and Mösern merged

into the destination known as Olympiaregion Seefeld, represented by the
Olympiaregion Seefeld DMO. The region offers more than 17,000 beds,
consisting of three five-star and 42 four-star hotels. From 2010 to 2011 the
winter season overnights increased by 1.8%, from 868,643 to 884,690
(Tyrolean Government, 2012a). In the same year overnights decreased by
4.7% during the summer season. In 2011, 201,594 tourists accounted for
918,623 overnights during the summer season (Tyrolean Government,
2012b). Seefeld’s strongest segment is the German market, but its market
shares of eastern European tourists are increasing. Demand for five- and
four-star hotels continued to increase (11% rise in 2012 in comparison to
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2011), while one- or two-star hotels were losing popularity (11% drop in
2012 in comparison to 2011).
The various villages in the Olympiaregion Seefeld display significant
diverse natural resources and tourism offerings. Of the total Seefeld work-
force, 45% is employed in the hospitality sector and 16% in other trade
(Statistik Austria, 2012). Leutasch is famous for the Ganghofer museum,
where tourists learn more about Ludwig Ganghofer (1855 1920), a novelist
who wrote several novels set in the region of Leutasch. With more than
2,200 inhabitants, it is the second-largest village in the Seefeld region and
offers approximately 5,000 beds (Olympiaregion Seefeld, 2013a). Of its total
workforce, 31.6% is employed in the hospitality sector, and nearly 20% in
agriculture and forestry (Statistik Austria, 2012).
Scharnitz is home to 1,400 locals and offers approximately 400 beds. It
is located near the border of Germany and changed rapidly after Austria
became an EU member. Former services such as money exchange and
souvenir shops disappeared. Scharnitz is in a phase of slowly constructing
facilities, which should improve the average duration of tourists stay (up
to 2 3 nights). Scharnitz’ main attraction is Port Claudia, a fort that
served as a defense post against the Bavarians. Reith’s tourism develop-
ment was strongly influenced by the construction of the Karwendel cable
car in 1912. In the winter of 1927 28 Reith offered only 250 beds.
Today, over 1,200 locals live in the town, where 920 beds are now on
offer. Of the total workforce, 40.7% are employed in hospitality and
tourism-related businesses (Statistik Austria, 2012). Finally, Mösern/
Buchen, at an altitude of 1,250 m, offers a great view down to the
Innsbruck Valley. Its main attraction is the Peace Bell, which themes a
hiking trail and offers spiritual experiences. Fewer than 400 locals live in
Mösern, but 1,000 beds are available for tourists (Olympiaregion Seefeld,
2013b).
 110 Contemporary Destination Governance

Products, Services, and Market Situation

Seefeld offers approximately 8,800 beds during the winter and 8,600
beds during the summer season. Differences between the seasons are minor.
4,400 beds are provided by five- and four-star hotels in winter, and 4,300
in summer. The occupancy rate for winter 2011 12 and summer 2012 of
the five- and four-star hotels was lower than the Austrian average, with
43% in winter and 54% during summer. The three-star hotels achieved an
occupancy rate of 32.4% in winter and 34.7% in summer; and the one-
and two-star hotels/pensions attained 28.5% in winter and 29.1% in
summer (Tiroler Landesstatistik, 2012c). The traditional core products
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of the Seefeld region are winter sports (especially Nordic ski sports) and
hiking, biking, and family adventures during summertime. In addition, an
increasing number of wellness hotels offer packages for relaxation-seeking
tourists.
The destination is closely located to Innsbruck, and is therefore relatively
weather independent, making it attractive to hybrid tourists with diverse
demand structures. Further infrastructure was developed to attract more
tourists and to create more weather-independent products. After investing
$19.3 million (h14.5 million), the Playcastle opened in 1999 on a 12,000 m2
area in the northern part of Seefeld. The main idea was based on an event
concept focusing on an interactive playground called FunDome. The castle
was supposed to offer various indoor and outdoor areas where youngsters,
kids, and families could play various games in a medieval surrounding. The
developers expected about 300,000 tourists annually, but after 18 months
the castle went bankrupt. After a long discussion about its usage, a new
investor was found and the new Playcastle with a club concept was planned
to open in 2013 (Schnöll, 2011).
An annual event attracting many spectators is the Flower-Corso in
August, where flower sculptures are presented in a parade and in the main
village center, and the ice sculpture event in winter. Both events are popular
among Seefeld’s tourists and locals. Tourism facilities are diverse. Seefeld
offers approximately 100 restaurants and 150 shops. For winter tourists,
Seefeld provides 45 km of downhill ski slopes. It is also very strong in the
field of Nordic cross-country skiing, offering more than 270 km of cross-
country slopes. In January 2013 the FIS Nordic Combined World Cup
took place in Seefeld for the tenth time. Seefeld offers approximately
650 km of hiking trails and 600 km of mountain bike trails in the summer-
time. During winter hikers can still use 70 km of hiking trails in the high
plateau of Seefeld. In summer the Wild Lake is quite popular and offers a
 Seefeld 111

natural habitat for local fauna and flora and a summer swimming area in
the middle of the Alps.
A convention center for large conventions with a maximum of 2,200
attendees and a renovated indoor swimming area are also part of the tourist
product range. Additionally, the local casino offers gambling facilities. The
Karwendel railway is still active and runs on a picturesque route through
the mountains. Recently, Seefeld applied for certification of the Karwendel
railway under UNECSO world heritage. Tourists can already visit an exhi-
bition telling the history of this extremely cost-intensive project implemen-
ted in 1912. Other educational offers in Seefeld focus on local traditional
crafts (e.g., fence-making in Mösern), religion and the history of Seefeld’s
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pilgrimage, and nature education paths (e.g., a bee nature trail in Reith), or
Tyrolean rural culture.
Today the Seefeld region covers villages incorporating a diverse supply
structure. The landscape is notable for the Wetterstein mountain range.
Besides winter sports, hikers enjoy approximately 650 km of hiking
trails, while other tourists seek relaxation during their winter or summer
holidays. These diverse attractions mean that Seefeld is also a strong sum-
mer destination, offering families a broad range of constructed attractions
(e.g., a summer toboggan run and fun park) and events (e.g., the annual
flower parade and ice festival). The region is also famous for its challenging
cross-country ski slopes, serving as a training ground for many international
Nordic ski associations. During the winter 2012 13 (October March)
Seefeld attracted 181,441 tourists, accounting for 944,950 overnights.
Compared to the winter 2011 12, Seefeld attracted more tourists (+10.8%)
and had increased overnight stays (+6.8%). Seefeld’s summer season 2012
(April September) was even stronger, with 225,360 arrivals and 947,749
overnights. In comparison to the summer 2011 season, they received more
tourists (+12.3%) and overnights (+3.2%) (Tyrolean Government, 2013). All
in all, Seefeld achieved 1,874,369 overnights during 2012. The most dominant
market was Germany, with 844,600 overnights, followed by Switzerland
(249,610 overnights), Italy (177,533 overnights), the Netherlands (119,879
overnights), and the Austrian market (92,457 overnights) (Statistik Austria,
2013; Tyrolean Government, 2013).

Governance

The DMO of the Olympiaregion Seefeld, with a staff of approximately 50

employees, produces annual sales of approximately $7.45 million (h5.6 million).
Five municipalities (Seefeld, Leutasch, Reith, Mösern/Buchen, and Scharnitz)
 112 Contemporary Destination Governance

make up the destination Seefeld. The DMOs in Tyrol act under the
Tyrolean provincial law (Tiroler Landesgesetz) that states that all tourism-
related enterprises are compulsory members. The DMO in the region is
managed by two CEOs who are responsible for different functional manage-
ment areas. Furthermore, these CEOs have to report to a supervisory board
and a board of directors led by the DMO president. The following interpre-
tation is based on interviews taken with various stakeholders in the destina-
tion. Eight interviews were carried out, lasting 20 60 minutes, in German.
Figure 2 shows the structure of the DMO, indicating interfaces with
various institutions including municipal committees, construction compa-
nies, and registration in the region. It highlights the main tasks of the DMO
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(e.g., marketing, distribution, and MICE—meetings, incentives, conven-

tions, events). The main goals of the DMO are expressed in the following
statement:

My personal goals are to strengthen cooperation with and

among member enterprises … to bundle our strengths to

Board of Members

President

Director I Director II

HR, Controlling & Product

Registration Development

Graphics/ Information Incoming &

IT Events Marketing Media MICE
Production Offices Distribution

Municipal Social Con-

Committees Media struction

Figure 2. Structure of the Olympiaregion Seefeld DMO

 Seefeld 113

create a powerful market presence … to mobilize our mem-

bers, persuading them to sit together at one table in order to
define and implement common goals (DMO, board member).

The DMO also attempts to develop communication areas and platforms for
the local and external stakeholders. “We developed several workshops
where we found that we share a common perception of future tourism
development,” said the DMO’s CEO. The actors in Seefeld evidence both
group and individual behavior, but individual behavior is perceived as pre-
valent. There is room for improvement in collaboration and/or cooperation.
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One interviewee described how “it has improved over the last one or two
years,” but another bewailed that the “willingness to cooperate” was “miss-
ing.” Especially during critical phases, all actors in the region of Seefeld
count on cooperation. However, actors with a high reputation in the region
dominate in decisionmaking about tourism development. A small number
of actors (e.g., entrepreneurs, landowners, and politicians) are seen as influ-
ential. Interviewees said that cooperative behavior is strongly influenced by
stakeholders’ perception of external or internal threats (e.g., the financial
crisis or climate change impacts). One hotelier commented, “We have to
overcome the financial crisis and at the same time, and because of the crisis,
we have to focus on new markets such as the Russians.”
Furthermore, individual interests dominate action. In order to follow
these interests, actors often try to join together in groups to gain greater
influence on destination development. Some joint strategies and concepts
have been prepared. In this respect, leading themes guiding tourism offers
have been developed for each village in the destination. Five pillars of
marketing have been defined, including the determination of target markets.
However, the lead enterprises perceived the destination Seefeld to be in its
infancy of vision creation and strategy development.

A bit of a group behavior can be witnessed … whereas every

group follows individual interests (tourism entrepreneur).

That’s the point. In this respect, we are still brainstorming.

We don’t have guiding ideas. We don’t have guiding princi-
ples. We only have these five pillars of marketing distinguish-
ing our target markets and target customers (mayor).

Right now we [need to] go back to our roots … search for a

new vision, a slogan, an overall goal that covers the whole
region (hotelier).
 114 Contemporary Destination Governance

The constellation of actors in the destination is experienced as quite hier-

archical. Decisionmaking and planning are rooted in individual ideas of
leading actors. These initiatives have to be broadly accepted by the stake-
holders in order to have a chance of implementation. Ideas need to go
through a discussion process. Thus, in destination development individual
concepts are the trigger. These have to pass legal structures after having
been discussed thoroughly in an informal manner. Key actors take a lead-
ing role in this process.

A leading actor has to propose something and the flock takes

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on the idea and likes it. They need to prepare these issues, so
that they are supported broadly, and then everything works
out. But from a dispute during a group discussion we never
achieved anything goal oriented. At least during the five years
I have been in this function I never witnessed it (mayor).

Decisionmaking takes place through conversations between

the key players (manager, cable car company).

You need to integrate the relevant interest groups before-

hand. You need to coordinate. And of course you need to
promote your idea a little and how it works and then finally
you present it (director, cable car company).

Relationships among the actors in the destination are organized for-

mally, since this is perceived as being safer. Power and knowledge are the
main governance instruments, which allow stakeholders to dominate certain
decisionmaking processes. Many gatherings and meetings take place during
the year. However, informal discussions are the main form of primary inter-
action when new ideas are generated. A very good climate of cooperation
exits between hoteliers, politicians, and the retail association. They also
manage organizational decisions quickly and efficiently. Trust and respect
are sensed as the most important characteristics for making a relationship
work. In the destination network the level of trust between the stakeholders
is sensed as mediocre, with scope for development. In general, the destina-
tion network shows a sufficient density with room for enhancement between
actors from the former distinct DMOs. The leading actors in the destina-
tion try to keep in touch with other stakeholders, particularly with key
players, on a frequent basis. “Trust, mutual respect, are important for inter-
personal contact,” noted the mayor; while the DMO manager agreed, “I
 Seefeld 115

think people who are trustworthy and diplomatic can work together with
everybody and achieve better progress. It definitely plays a role.”
The DMO focuses on marketing and coordination activities, but simulta-
neously complains about the lack of financial resources. Only in the second
phase of discussions are formal meetings interpreted as important. The
mayor is a central individual in the region who influences the majority of
decisions in the field of regional tourism development. He observed,
“… many of us have not understood the need to develop final ideas and
projects. It needs individual efforts. Then and only then, will they profit
from public funds.” According to the interviewees, the major future goals
of the destination Seefeld are to overcome the impacts of the economic
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crisis and to keep the operations going at a high level. Furthermore, new
target markets such as Russia and new market segments such as younger
people should be targeted. A current discussion is ongoing to define the
destination’s future goals and strategies. As summarized by a hotelier,
“Now we are heading back to our roots. We are trying to find a new vision,
a new target course for the whole destination.”

CONCLUSION

The case study of the Olympiaregion Seefeld reveals the characteristics of a

community and corporate model (Bodega et al., 2004; Flagestad & Hope,
2001). On the one hand, only a few players make decisions in informal and
formal meetings, especially the mayor and a few highly regarded firms. On
the other hand, many small players operate in the region and are repre-
sented through associations such as the local retail association. While a few
dominant players introduce new ideas and plans, these ideas have to be dis-
cussed on a broad community basis. However, the mayor is a member of
almost every formal gathering and association, and therefore strongly influ-
ences decisionmaking processes. The mayor also has a significant reputa-
tion, while the DMO has some influence but is basically a coordinator.

QUESTIONS

1. What is the main role of the DMO in the Seefeld region?

2. What are the advantages and disadvantages of flat governance hierar-
chies in a destination?
 116 Contemporary Destination Governance

3. How can individuals with multiple roles in a destination foster or hinder

tourism development?
4. Discuss the organizational structure of the DMO presented in Figure 2.
What are advantages and disadvantages of this given organization
chart?
5. Discuss the strengths, weaknesses, opportunities, and threats of a diverse
destination product.
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