Travel Reference
In-Depth Information
by 12-19% (National Tourism Development
Programme, 2003).
Lithuania's
Medium Term Marketing
Strategy 2005 to 2009
(European Commission,
2004) identifies six broad product categories:
coastal holidays, city breaks, coach tours, health
spas, countryside/rural tourism, meetings and
incentive travel. Strengthening of the image
and identity of Lithuania and the creation of a
Lithuanian brand are seen as being issues extend-
ing across all product categories and markets.
Each product category has its specific and different
priority markets. Coastal holidays, for example,
prioritize Germany, Russia, Latvia, Belarus and
the domestic market, with each market having
its preferred resorts (Neringa or Palanga). City
breaks are linked to cultural interest or sporting
events and the importance of developments
in the transport infrastructure are noted. For
example, strategic partnerships with 'no frills'
airlines are seen as critical to the competitive-
ness of Vilnius, the Lithuanian capital, in the
European city-break market; the opening of the
new ferry terminal in Klaipeda in 2006 is key to
the Scandinavian market; while railways are
important for domestic, Polish, Latvian and
Belarus markets. Coach tours are perceived as a
straightforward product, especially for more dis-
tant markets - the UK, the USA, Sweden and
other original EU member countries, particularly
Italy. Lithuania recognizes four health resorts:
Neringa, Palanga, Druskininkai, Birštonas, each
with very different specializations. Meetings and
incentive travel is identified as having the advan-
tage of a higher per capita spend and the disad-
vantage of a long lead time (at least 3-5 years).
The establishment of a Lithuanian Convention
Bureau is seen as being key to the development
of the meetings and incentive travel market.
Countryside/rural tourism in Lithuania is a
product category that is of particular interest.
Bicycle tourism is particularly important as a
rural tourism activity. There are opportunities to
promote countryside accommodation in asso-
ciation with nature reserves and cultural sites
in rural locations and walking, canoeing, bird
watching, hunting and fishing are seen as
having potential in the longer term (European
Commission, 2004). Rural tourism is seen as
having the potential to generate 30-40% of
total income and being particularly important
in areas where agricultural land is less fertile
(National Tourism Development Plan, 2003).
The demand for rural and farmhouse accom-
modation outstrips supply, and the quality of
accommodation is identified by the Marketing
Strategy (European Commission, 2004) as being
of sub-standard quality and requiring further
investment. The majority of rural tourism visitors
come from neighbouring countries and, more
recently, German-speaking countries. People
living in rural areas are generally not prepared
for tourists from further afield due to communi-
cation and language barriers and lack of busi-
ness skills. However, an increasing number of
Lithuanian city dwellers are travelling to rural
areas for short breaks resulting in several bene-
fits: Lithuanians become acquainted with their
homeland, which helps build Lithuanian iden-
tity and encourages the cherishing of natural
and cultural values. In an economic development
sense, increased domestic demand for rural
tourism products is important in developing a
quality platform for incoming tourism. Ritchie
and Crouch (2003, p. 24) identify that:
generally the supply of tourism product is
driven by domestic or local demand that is
typically more stable and reliable and less fickle
than demand from distant markets. Hence,
solid domestic demand provides a healthy
competitive environment and the critical mass
of demand necessary to support a thriving
tourism and hospitality industry. Strong
domestic demand therefore helps to provide a
climate that also encourages inbound tourism
and discourages outbound tourism.
Ritchie and Crouch (2003, p. 102) further
assert that:
Strong local demand creates an environment
that fosters the development of a rich variety
and range of tourism amenities, facilities,
attractions and services. Indeed, without sub-
stantial local demand, many of these facilities
and services, particularly those provided by
governments and funded through taxation,
would not exist to the same extent. Governments
provide public services which the private sector
cannot or will not provide. While foreign
tourists may be able to enjoy the benefits of
these public services and facilities, where they
exist, it is domestic demand that provides the
real basis for their need and funding.
So rural tourism can be seen as a distinct
phenomenon in Lithuania's rapidly growing
