SWOT Analysis ICT & Tourism Parkstad Limburg
Version 0.1 Stephan Roijers, Simpact BV May 2010
Under the authority of Parkstad Limburg
1. Strengths a.
Strong strategic vision on tourism development, with broad support by local governments and businesses.
b.
“Action Plan Tourism 2010-2014” focuses on 3 priorities that will put Parkstad on the map as a touristic region on Euregional scale.
c.
d.
e.
The importance of tourism in Parkstad is growing, turnover has quadrupled over the last decade, and it is considered a major source of employment. Already fastest growing touristic region in The Netherlands. Broadband connectivity of households in the Parkstad region is 99% (DSL and cable). Many businesses and organizations are already connected by fiber infrastructure through Isidoor/Isilinx.
2. Weaknesses a.
Parkstad is relatively unknown as a touristic region and is not an official geographical designation (e.g. can not be found on maps or satnav systems).
b.
Even though strategy and plans have been devised, structural financing and execution are still an issue. There is no defined, allocated budget available for ICT/tourism development.
c.
Also on a provincial level, there is no specific focus on or financing for ICT/tourism development.
d.
Strategy and focus – although relatively recent - have not yet yielded more than a handful of initiatives.
e.
WiFi network HeerlenLive does not yet have a proven, sustainable business model, so sustainability is an issue.
f.
Heerlen Internet Exchange offers Parkstad organizations access to broadband services and interconnection to the rest of the world.
f.
Consultative structures are relatively complicated and slow-moving, hampering a quick decision-making process.
g.
HeerlenLive: a public-private New Media initiative that focuses on development of local ICT services to enhance interaction and experience with inhabitants and visitors.
g.
Co-operation between (SME) businesses on a regional level is still underdeveloped.
h.
HeerlenLive initiated the rollout of a citycentre covering public WiFi network that a.o. facilitates services like a guided city walk (Kijk!Heerlen).
i.
Open University Heerlen and Zuyd University offer Computer Science programs on Bachelor and Master level.
j.
The Technohouse is a modern multi-tenant business centre, providing excellent incubator facilities for ICT startups.
k.
Heerlen is well on its way to cluster ICTactivities in the region. Brand new Coriopolis Business Park en Avantis European Science and Business Park offer excellent opportunities for ICT companies,
Internal Factors
some of which have already settled there (like Vodafone-Ericsson). l.
The ultra-modern complex LEX The Learning Experience provides learning methods that are supported by ICT and audiovisual tools.
m. The RWTH Technical University of Aachen, located close to Heerlen, is one of the most important technical universities in Europe, especially in the field of ICT. n.
The Maastricht Hotel Management School is part of the Zuyd University of Applied Sciences, and offers a bachelor and two master courses in hospitality management.
o.
The Limburg province offers a revolving fund that SMEs can use to finance innovations.
p.
MyLimburg is an innovative touristic website, enriched with user-generated content, and accessible on mobile devices.
3. Opportunities a.
Local focus on development of mobile
4. Threats a.
Due to the economic crisis, a lot of
internet (infrastructure and services) is a
financial arrangements (subsidy
strong enabler for touristic applications
schemes, financing schemes) have been
because travelers rely more and more on
(temporarily) discontinued or capped.
mobile devices.
This might on short-term seriously hamper the development of new
b.
There is a provincial focus (on
initiatives.
political/policy level) on improving ICT infrastructure which will help (potential)
b.
Local governments will experience
Parkstad infrastructure initiatives to get off
drastical budget cuts over the next few
the ground. In fact, intentions to
years. This will cause them to re-
implement fiber-to-the-home in the entire
prioritize their efforts and has the risk of
province were announced.
a decrease in (support of) innovative initiatives.
c.
Rising unemployment numbers strengthen the role of the tourism sector as an
c.
Due to the economical situation, tourism
effective countermeasure with policy
spendings are declining. This not only
makers. Parkstad can use this situation to
puts pressure on the existing tourism
attract funding and support of her tourism
industry, but also threatens the viability
innovation initiatives.
of new initiatives and business cases.
External Factors
d.
The provincial government is developing a
d.
The chicken-and-egg problem of
comprehensive innovation stimulation
infrastructure versus services plays a
program. Parkstad can use this program to
role in ICT solutions for tourism as well.
actively promote the development of ICT
The local tourism market is relatively
services for tourism.
small (in absolute numbers), so the business case for commercial services
e.
A new national ‘Crisis and Recovery Law’
largely depends on the accessibility.
has been approved in March 2010. One of
Also, the business case for infrastructure
the measures is an adaptation of the
rollout is largely based on usage/users.
Telecommunications Law, which now
There does not seem to be a ready-
expressly allows local governments to
made plan for a breakthrough in this
invest in (open) digital infrastructures.
situation, which will only get worse if the government cannot (or will not)
f.
Thanks to the sale of shares in energy
invest in services or infrastructure either
company Essent, the provincial
because of budget cuts.
government will be able to invest an extra 300 million euro, which may – despite the
e.
often not realistic enough, causing them
economic situation – lead to extra efforts in
to cease or at least blocking further
(ICT) innovation and digital infrastructures. g.
development. In a complicated market
The new High-tech business parks, local ICT
like tourism this effect may even be
education (local graduates), and good fiber
intensified.
infrastructure are a strong combination to attract more ICT-companies tot the Parkstad region. h.
Business cases of new initiatives are
Parkstad’s relative anonimity as a touristic
f.
Finances of the Parkstad Tourism plans have yet to be finalized, so it is not certain that all activities will be able to be carried out as planned.
region is also an advantage in terms of market growth potential. A lot more people in The Netherlands and surrounding countries can be attracted to the region, which really has a lot to offer.
Positive (or potential positive)
Negative (or potential negative)
Additional notes Despite the economic situation that accounts for the majority of the threats, we believe that Parkstad has a strong starting point for attracting more tourists by means of ICT. The fixed infrastructure is already one of the best in the world (and steadily improving), cell phone coverage (and thus mobile internet) is close to 100%, and the Parkstad strategy and plans will no doubt attract parties that are interested in services development. Also, jobs created in the tourism industry seem to fit the local employee potential nicely, making it a very effective investment from an employment point-of-view. However, the yield of currently available ICT services for tourism in the Parkstad region is light, and the sustainability (let alone further rollout) of recent initiatives like the HeerlenLive WiFi network has yet to be proven. Also, the plans are there, but financing them is still somewhat of an issue. Execution could be delayed or in some cases even postponed or discontinued. But Parkstad benefits from a healthy ICT community – both in terms of businesses and knowledge institutes – as well as from solid co-operation between the 8 collaborating municipalities, which might make a big difference in execution power. And since there is no telling how long the region will still suffer from economic setbacks, a lot of the threats that we have identified might soon not be as serious anymore. The latest statistics are going in the right direction, unemployment rates in the province have gone down by 3% in April 2010.
