visit faroe islands - annual report

ANNUAL REPORT 2014Visit Faroe Islands

2 - Visit Faroe Islands / Annual Report 2014

PREFACE 3

TOURISM 2014 IN NUMBERS 4

THE ECONOMIC SIGNIFICANCE OF TOURISM 10

THE TOURISM STRATEGY 12

VISIT FAROE ISLANDS 16

THE TOURISM BRAND OF THE FAROE ISLANDS 18

VISIT FAROE ISLANDS HELPS CREATE MORE THAN DKK 57 MILLION IN MEDIA BUZZ 22

MEET THE STAFF 26

Table of contents

Annual Report 2014 / Visit Faroe Islands - 3

2014 has been a very productive year for the Faroese tourism industry. Following the re-establishment of some of the fundamental functions of a tourism organisation for tourism in 2013, we were able to fully implement the new strategy in 2014. Currently, the numbers all point in the right direction. Compared to the year before, 2014 experienced more traffic at the airport, more travellers by sea, more bed nights, and greater total revenue for the industry.

This year we focused on improving our international PR, bolstering our social media presence, and appealing to companies as a MICE destination. By the end of the year we had brought in a total of 162 media contributors, including several of the world’s largest media companies, such as National Geographic Traveler, CNN and Newsweek. The final PR-value resulted in more than DKK 57 million for 2014. This is almost triple the amount of the year before. An outstanding result! This year’s PR-work, combined with a goal-oriented effort in social media, has made the Faroe Islands far more visible than ever before within the international market, both digitally and in print. Also, our efforts to sell the Faroe Islands as a unique place for conferences, meetings, teambuilding etc. have yielded positive results.

We are happy to announce that 2014 was the first year we collected statistics specifically related to tourism. It is important to have the right statistics that can confirm the size and scale of the tourism industry. These numbers will be an effective tool for measuring future progress. As previously mentioned, we are on the right path, and our current figures suggest we have already reached our goals for next year.

This year, we’ve also seen a lot of interesting destination developments. New hotels and restaurants have sprouted in the country, and Vágar Airport has finished construction on a new terminal. This growth contributes to the quality of experience when visiting the Faroe Islands.

It’s very satisfying to see how well our brand has been received in the various markets, as well as how powerful it has proven to be. The results have been record high for many of our marketing events, and Visit Faroe Islands has won five awards for our signature branding film at international film festivals.

More than ever before, this year has proven that there is great potential for the Faroe Islands as a tourist destination, and there is no doubt that the tourism industry will benefit as a result.

In this annual report you will get a better picture of the work Visit Faroe Islands carried out this year through a description of the various areas, such as press trips, various events abroad partnerships and local events in the Faroe Islands.

We appreciate your cooperation and thank you for a good year.

Guðrið HøjgaardDirector, Visit Faroe Islands

Preface


Tourism 2014 in numbers


In accordance with the agreement from January 1st 2013 between

Hagstova Føroya (Statistics Faroe Islands) and Visit Faroe Islands,

Hagstova Føroya now gathers statistics on bed nights throughout the

country. All hotels, campsites and other providers of accommodation

pass on their information to Hagstova Føroya, including number of

visitors, their nationalities and length of stay. Because of this

information we can keep track of where the tourists originate, as well

as measure how our fixed goals are coming along, and how the

service industry changes over the years.

Furthermore, the plan is to gather more comprehensive statistics that

show the importance of tourism for the nation’s economy, the

increase in employment opportunities and other key information.

* This number is somewhat reduced for various reasons, one being that the numbers for the Summer Festival have been excluded.

BED NIGHTSIn 2014, there were 137,510 bed nights in the Faroe Islands. In 2013, there were 128,767*. This increase is because of tourists arriving from abroad. When put together, the increase in bed nights came near 12%, meaning 11,014 more lodgings. Within the same time period, the amount of lodgings by locals decreased by almost 6%, meaning 2,271 fewer bed nights. The Norwegian market experienced the highest increase by far, as it has grown by 50%, meaning almost 4,000 more lodgings than the previous year. We also saw an increase in many of the other markets, such as Sweden, Italy, the U.S., the Netherlands and France.


With only two years of gathering the new statistics, it is still too early for general comparisons, but we can determine that the proportions within the markets have shifted significantly this year. In 2013, 52.2% of the tourists who stayed in the Faroe Islands came from Denmark; now, the Danish numbers are 46.9%, while almost all of the increase stems from other countries. The majority of these numbers belong to the hotels, as they accommodate 75% of all bed nights. Hotels in the Faroe Islands also had the greatest increase from 2013 to 2014. Two thirds of all bed nights are in the capital area. Most of these visitors travel alone, as 55% of the bookings are made by solo travellers on a leisure trip. The hotel capacity has grown by 14% in number of beds, and 11% in number of rooms.

Even though the total amount of bed nights has increased, the amount of arrivals to the locations has decreased. This means the guests stayed for longer periods of time, either overall or at each individual place.

CRUISEThe number of cruise guests has been continuously growing for many years now and in 2014 the numbers were record high. The amount of cruise ships has been relatively steady over the past years, but the number of passengers is growing. In general, this is because the cruise ships are expanding their capacity, giving them room for more guests. The number of cruise guests this year is five times as large as in 1999. In 2014, there were 50,304 cruise guests in the Faroe Islands from 54 different cruise ships. Furthermore, the cruise ships employed 22,970 people,

many of whom leave the ships while they are docked. So the total amount of cruise guests becomes 73,274.Most of the ships dock in Tórshavn’s harbour, but over the past three years more ships have docked in Klaksvík than usual. In 2014, most of the cruise passengers came from Britain, Germany, the U.S., Canada and Australia.

TOP 10 list offoreign bed nightsin 2014

1. Denmark

2. Norway

3. Germany

4. Sweden

5. The U.K.

6. Iceland

7. Finland

8. France

9. The Netherlands

10. Italy


Arrivals (”Check-in’s) in 2014

Groups(10+), business 5.4 %

Individuals, business 31.1%

Groups(10+), leisure 8.3 %

Individuals, leisure 55.2 %

100 %


2014 bed nights, grouped by country of origin and lodging type

Country Hotel B&B Private Camping Total Difference 2013-2014

Denmark 38,464 552 8,759 586 48,361 274 1%

The Faroe Islands 22,687 126 10,015 1,567 34,395 -2,271 -6%

Norway 10,857 154 812 184 12,007 3,995 50%

Germany 3,831 277 1,217 1,588 6,913 -336 -5%

Iceland 3,634 61 350 465 4,510 -672 -13%

United Kingdom 3,694 124 588 187 4,593 -9 0%

Sweden 4,511 86 260 152 5,009 1,534 44%

Italy 1,291 116 328 105 1,840 292 19%

Finland 1,768 25 95 33 1,921 581 43%

The Netherlands 1,017 101 366 360 1,844 496 37%

USA 1,200 61 322 28 1,611 506 46%

France 992 86 352 477 1,907 1,265 197%

Spain 796 28 126 26 976 -82 -8%

Greenland 341 8 349 -14 -4%

Other European countries 4,757 153 415 691 6,016 2,012 50%

South America 1,490 12 1,502 1,330 773%

Asia 484 8 95 8 595 128 27%

Australia and New Zealand 368 82 242 31 723 557 336%

Other parts of North America 268 13 12 293 11 4%

The Middle East 58 58 -119 -67%

Other parts of Africa 25 2 27 -79 -75%

Central America / the Caribbean 50 6 58 114 99 660%

North Africa 3 3 3

Not listed 1,145 2 796 1,943 -758 -28%

Total 103,728 2,064 25,216 6,502 137,510 8,743 7%


100%90%80%70%60%50%40%30%20%10%0%

% of bed nights (occupancy), by month and year

2014/01 2014/03 2014/05 2014/07 2014/09 2014/112014/02 2014/04 2014/06 2014/08 2014/10 2014/12 The year 2014

2014 bed nights, grouped by type and month

Type 2014/01 2014/02 2014/03 2014/04 2014/05 2014/06 2014/07 2014/08 2014/09 2014/10 2014/11 2014/12 Total Diff. 13/14

Bed and breakfast 12 34 61 143 436 642 549 110 34 14 29 2,064 8%

Hotel 3,212 4,515 6,911 5,649 11,012 14,180 17,964 14,127 11,640 6,245 5,312 2,961 103,728 7%

Private housing 624 469 923 1,499 1,981 3,744 6,913 4,167 3,005 1,024 583 284 25,216 -8%

Camping 30 227 1,268 3,177 1,527 153 30 20 70 6,502 127%

Grand Total 3,836 4,996 7,868 7,239 13,363 19,628 28,696 20,370 14,908 7,333 5,929 3,344 137,510 7%

2014 bed nights, grouped by location and month

Location 2014/01 2014/02 2014/03 2014/04 2014/05 2014/06 2014/07 2014/08 2014/09 2014/10 2014/11 2014/12 Total Diff. 13/14

South Streymoy 2,616 3,281 5,839 5,011 9,489 13,000 19,005 12,956 10,026 4,958 4,172 2,294 92,647 5%

Not in South Streymoy 1,220 1,715 2,029 2,228 3,874 6,628 9,691 7,414 4,882 2,375 1,757 1,050 44,863 11%

Grand Total 3,836 4,996 7,868 7,239 13,363 19,628 28,696 20,370 14,908 7,333 5,929 3,344 137,510 7%

2014 lodging capacity, beds and rooms Beds and rooms in the hotels, monthly capacity (beds or rooms * days of the month))

2014/01 2014/02 2014/03 2014/04 2014/05 2014/06 2014/07 2014/08 2014/09 2014/10 2014/11 2014/12 Total Diff. 13/14

Beds 28,768 25,984 28,768 27,840 29,946 29,970 30,969 30,969 29,970 30,845 29,850 30,845 354,724 11%

Rooms 13,175 11,900 13,175 12,750 13,640 13,770 14,229 14,229 13,770 14,167 13,710 14,167 162,682 14%



Passengers Crew Vessel60

50

40

30

20

10

01999 2000 2001 2005 20082002 2006 20092003 2007 20102004 2011 2012 2013 2014

50,000

45,000

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

Number of cruise guests, crew members, and total arrivals from 1999-2014

Source: TAKS/Hagstova Føroya


The board’s establishing meeting of Visit Faroe Islands as a public company, July 1st 2014.

VISIT FAROE ISLANDS’ BOARD OF DIRECTORSJohannes Jensen, Gist & Vist, chairmanJørgen Holme, Atlantic AirwaysSif Gunnarsdóttir, the Nordic HouseRúni V. Poulsen, Smyril Line

Ingibjørg Berg, Tórshavn municipalityÁki L. Hansen, Eiði municipalityOddbjørg Højgaard, Hotel HafniaJóhan Pauli Helgason, Ministry of Trade and Industry


The economic significance of tourism


In 2014, at Visit Faroe Islands’ request, Hagstova Føroya began researching the

economic influence of the tourists’ expenditure in the Faroe Islands. Because of

logistical time constraints, this data is approximately one year behind. Therefore, the

numbers in this report are from 2013. The same statistics have also been made for 2011

and 2012 for comparison.


REVENUEIn 2013, the total amount tourists spent on services and general goods was DKK 577 million; a clear increase since 2011, when the amount was DKK 448 million. In two years, the numbers increased by 29%. The analysis shows that 77% of the total amount was from international transportation and travel agencies. Around 12% was from hotels and other lodging, and 4% was a result of food and drink purchases. The remaining percentages are shared between domestic transportation, clothing sales, excursions and more.We’ve also seen an increase in value added tax within the timeframe, as the numbers have gone from DKK 21 million in 2011 to nearly DKK 27 million in 2013. Tourists have the right to a partial refund of the VAT, but in

total, this accounts for less than DKK 2 million for all three years.

JOBS IN TOURISMUnfortunately, we do not have the exact number of jobs within the industry yet, but for the time being Hagstovan shows an increase in jobs from 276 in 2011 to 331 in 2013. These numbers are not all inclusive, as only the international transportation companies, travel agencies, hotels and lodging providers are accounted for. Restaurants, tour guides and other excursion providers, among others, are not yet included. Hagstovan estimates that the total number of jobs within the industry amounts to between 400-500.

GROSS DOMESTIC PRODUCTWhen comparing numbers, tourism revenues account for a greater percentage of the gross domestic product (GDP). From the years 2011 to 2013, tourism revenue has grown from 3.4% to 4% of GDP. When analysing profit rather than the general revenue, the numbers have grown from DKK 175 million in 2011 to DKK 226 million in 2013. Tourism profits made up 1.4% of the GDP in 2011 and 1.6% in 2013.

EXPORT VALUEThe Faroese tourism industry accounted for 7.8% of the all product and service exports in 2013. In 2011, this number was 6.8%. If only service export numbers are used, the tourism industry accounted for 42.8% of export in 2013, compared to 38.6% in 2011.

Tourism revenue for 2011-2013, in addition to the increase in value, VAT and number of jobs

In millions 2011 2012 2013

International transportation and travel agencies 334 410 442

Hotels and other lodging 56 61 71

Food and drink purchases 18 20 20

Domestic transportation 14 14 16

Excursions 11 9 10

Clothing sales 6 7 7

Others 9 10 10

Total revenue 448 532 577

Increase in value 175 205 226

Value added tax 21 24 27

Number of jobs 276 297 331

Source: Hagstova Føroya


The tourism strategy

Worldwide tourism increase

The tourism industry is one of the fastest growing industries in the world. According to WTO, the industry has had an annual growth of 4-5% over the past decade. This increase is expected to continue until 2020. Most of the countries surrounding the Faroe Islands have experienced a large increase within the same timeframe. We do not have the statistics to confirm whether

this is the case in the Faroe Islands as well. However, we know that the Faroe Islands have not attracted an equal amount of tourists, and the local industry needs to stimulate growth in order to improve. The capacity of the hotels has not changed much since the mid-1980s, and, proportionally, the amount of guests is one of the lowest in Europe.

The new strategy for tourism in the Faroe Islands


Despite this, the Faroe Islands show great potential as a tourist destination. The country’s uniqueness makes it the perfect experience for picky travellers. But without more effective marketing strategies, the Faroe Islands are simply lost amidst the many other destinations.

With this in mind, Visit Faroe Islands has created a new strategy where we partner with industry players to promote growth.

THE STRATEGY EMPHASIZES THREE MAIN POINTS:

1. Samskipan av marknaðarføringini út frá einum felags brandi: Øll marknaðar 1 Focused marketing: All marketing by the industry will be coordinated through one joint brand.

2. Framing: Creating the best possible framework for the industry. The legislation needs to be refined to create a safer framework and increased profit for the providers.

3. Development: Ensure sustainable development, as well as facilitate product development, investments and education within the tourism industry.


VISIONOur vision is that tourism will be a new core industry to the Faroese economy. It should be sustainable and compliant with the needs of the Faroese people, the environment and the economy.

Our goal is to double the value of tourism in the Faroe Islands and increase the revenue to no less than DKK 1 billion by 2020.

LONG-TERM GOALS OF 2020Together, we will place the Faroe Islands on the map as a unique, interesting and sustainable tourism destination.

2015:· 140.000 total bed nights· + 200 places of employment (in

comparison to the statistics of 2011)· DKK 600 million in revenue.

2020:· 200,000 total bed nights· + 450 places of employment (in

comparison to the statistics of 2011)· DKK 1 billion in revenue

Reaching revenue of DKK 1 billion by 2020 requires an average annual industry growth of 10-11%. Under current conditions, these goals are highly realistic.

An increase in bed nights will increase the revenue within the industry, which in turn will create more employment opportunities in all areas of the industry; everything from tour guides, specialised tour planners, airline and sea carriers, hotels and restaurants to sales and marketing positions. Other related industries will also benefit from increased demand.

PRIORITIZING INTERNATIONAL MARKETINGIn order to meet our goals, most of our resources will be directed towards international marketing over the next few years. This will create a greater focus on marketing rather than product development. The high season is currently too short, and we need to extend it by selling the Faroe Islands as a year-round destination. This can be done by attracting more conferences and segments that work well with what our product has to offer. This will also better our chances of attracting the “right” tourists who are more profitable for the industry. The segments we are targeting can be found in all of the prioritized markets.

The new strategy for tourism in the Faroe Islands


CHOICE OF MARKETS AND SEGMENTSThe markets are split into A, B and C categories, with A being the main priority.

· A-market: The Nordic countries, Germany, Great Britain.

· B-market: Benelux, Italy, Spain, France. · C-market: The U.S., China, Japan,

Russia, other European countries.

All of our marketing is based on our new brand. First, we will prioritize the group with “low-hanging fruit, i.e. the areas that are most likely to already know of the Faroe Islands, thereby increasing the likelihood of attracting tourists quickly. Therefore, we will focus more on the Nordic countries than we have previously. All of the segments are included in the A market, meaning Consumers (B2C), Media, and Businesses (B2B). We will also work with MICE coordinators in certain parts of the A market. In the B market, we will primarily focus on collaborating with the media and other businesses. Minimal work will be done in the C market, although there will be some campaigns.

All of our marketing efforts are now tied to our brand to reach the best possible outcome. This includes, but is not limited to: campaigns in the markets, topics in the media, websites, social media, events, presentations, as well as merchandise.

To acquire more details on our strategy, please contact Visit Faroe Islands.

B2CCampaigns

B2B Events

ExhibitionsWorkshops

B2C Events

Exhibitions

B2BBrochures

Newsletters Promotional products

FAM toursWebsite

MEDIAPress trips

Press releasesNewsletters

Website

B2CBrochures

Social mediaWebsite

Marketing cam

paignsA

B

C


Visit Faroe IslandsVisit Faroe Islands (VFI) was part of the Ministry of Trade and Industry until 2014, when it transitioned to a public limited company. Its objective is to coordinate and manage the marketing of the Faroe Islands as a tourist destination in order to increase tourism revenues.

MISSIONVisit Faroe Islands’ mission is built on three pillars:The three c’s: · Consolidate, coordinate and campaign for the Faroe Islands as a tourist destination.

· By working in conjunction with the members of the industry, VFI’s aim is to rebrand the Faroe Islands as a top tourist destination among target demographics.

· VFI aims to be the go-to authority on all things tourism while driving the industry forward.

STAFFVisit Faroe Islands currently has six full-time employees and one half-time employee.

Visit Faroe Islands

Director

MarketingBusiness

MarketingPrivate & PR

MarketingDigital

OfficeBookkeeping

THE ORGANIZATION of the staff of Visit Faroe Islands


BUDGETIn 2014, Visit Faroe Islands had a budget of DKK 12.9 million. The money was spent as follows:-8.5 million on international marketing.-3.7 million on administration/overhead/payroll/local events in the Faroe Islands.-0.7 million on statistical analysis and gathering.

As illustrated, approximately 2/3 of the budget was spent on international marketing, in accordance with the original objective, although more was spent on gathering statistics than in the previous years. The increase comes from a greater focus on gaining data, so we can use this to analyse past trends and guide future policy. VFI expects to gather new data every three years.

The budget in 2014 began with 13.4 million, but 0.5 million was immediately allotted for company equity.

VFI was given an additional DKK 2.5 million to be distributed as grants:· 1.5 million to regional organization/local information centres

· 0.5 million to NATA (the North Atlantic Tourism Association)

· 0.5 million to the ”krónu fyri krónu” grant

VISIT FAROE ISLANDS’ GOALSFOR 2014 An extensive launch of the new brand on

an international level – complete Finalize brand elements - complete Build MICE department - complete Establish a MICE network – complete Transition to being a public company

– complete Create a variety of tools for the Faroese

public to get involved in promoting tourism - complete

Further development of the Faroe Islands in social media - complete

Further development of the international PR-work – complete

Coordinate the Solar Eclipse on international levels – complete

Gather statistics for the tourist industry – complete

Organize visitor surveys for more information on the tourists - complete

Further development of the new website – in process

The larger budget has made all of this possible:· Enter the Norwegian market· Enter the Icelandic market· Enter the Swedish market· Enter the Spanish market in cooperation with Atlantic Airways

· Extensive campaigns with Smyril Line in Denmark

· Extensive campaigns with Atlantic Airways in Denmark

· Expanded international PR work· Increased marketing· More campaigns for targeted segments: fishing, food, motorcycles and more

· Development of the website· Create a new brand· First class media kit· New statistics = New compass

A NEW BUDGET = GREATER OPPORTUNITIES


The tourism brand of the Faroe Islands


This is one of the key aspects to making progress; to have a common identity that every marketing strategy is based on. The Faroe Islands needs to advance past being an unlabelled destination to become a unique and exciting possibility for our interest groups; a destination that people want to travel to sooner rather than later.

From the Faroe Islands, Iceland, Norway, Denmark, Sweden, England and the U.S., 10 different companies participated in the contest, each of whom entered their best bid on what the new Faroese brand should look like. By summertime, the winners had been chosen, and the decision was to use the

concepts created by the two companies, Sansir, from the Faroe Islands, and Liquidminds, from Denmark.

On the 14th of August, the new brand was revealed at the Nordic House, along with the first signature film. It’s safe to say the brand has been very well received.

The concept is strong, and the feedback shows that the brand conveys the right message for the recipients, thereby optimizing the marketing efforts.

The tourism brandof the Faroe Islands

In late 2012, Visit Faroe Islands launched a competition to create a national brand for the tourism industry. The aim was to unite the local tourist industry

under one banner in order to strengthen the business.

The logo is artistic, abstract and open to

interpretation. The most iconic reference is

the ram, but the logo has also gained

inspiration from the image of a wave, a

conch, the stern of a Viking ship, wool and

the Faroese dance.


Using the words “Unspoiled, Unexplored, Unbelievable”, and by adding the prefix “un” in front of the keywords in the description, we communicate the notion that the Faroe Islands offer a new experience. This distinguishes the Faroe Islands from more popular places, thereby turning them into a unique and distinct destination.

The new brand applies well across media platforms, translates well, and highlights all the Faroese seasons..

The fact is that more people visit the Galapagos Islands every year than the Faroe Islands. But the idea that the Faroe Islands are unspoiled and undiscovered really adds to their potential as a destination. This appeals to the tourists that want to explore their own, unique paths, rather than follow in the footsteps of others.

Unstoppablewelcome to our 60 million year old theme park, called Mother Nature

Unveilthe story of the islands

unaffectedcommunities

by time


USING THE BRANDVisit Faroe Islands is the owner of the brand while everyone else in the industry is invited to use it. By offering the brand “Visit Faroe Islands” to the tourism companies, we provide them with a tool to bolster their own initiatives while maintaining their own individual identities.

In addition to this, we’re also going to encourage all Faroese people to use the brand in their spheres of influence, whether in meetings, as exchange students, or in their digital lives, etc. A brand book can be found in Faroese.

FIVE INTERNATIONAL AWARDSIn 2014, our Summer branding film won five international film awards in the categories “Best editing” (Zagreb Tourfilm Festival), “Nature & ecotourism” (Bulgaria), “Outdoor tourism” (Baku International Tourism Film Festival), “Destination Marketing” (Czech Republic), and “Best editing” (Portugal). Two Sansir representatives, Tór Verland Johansen (client director), and Bogi Henriksen (creative director), can be seen picking up the award in the Czech Republic in October of 2014.

knitting traditionsunbroken

real life

unpluggedexperience living room concerts


Visit Faroe Islands helps create more than DKK 57 million in media buzz.

Visit Faroe Islands creates media buzz


Press coverage for 2014 broke all previous records.

By investing a DKK million, Visit Faroe Islands accomplished a PR net worth of DKK 57.2 million, nearly tripling the previous year. In 2014, a total of 162 international media contributors were invited on press visits to the Faroe Islands. In 2013 and 2012, the Press totalled 100 and 50, respectively.

The magazines and newspapers represented come from countries such as Denmark, Norway, Sweden, Finland, the UK, Germany, Italy, Spain, France, Holland, Belgium, Poland, the USA, Australia, New Zealand, Singapore, China and Russia.


Visit Faroe Islands creates media buzz


Meet the staff of Visit Faroe Islands

GUÐRIÐ HØJGAARDDirector

Mobile: +298 55 61 [email protected]

SÚSANNA SØRENSENLeisure Marketing Manager & Press Officer


ANNLEYG LAMHAUGEMICE Marketing Manager


LEVI HANSSENContent Writer


BÁRÐUR EKLUNDDigital Marketing Manager


BRYNHILD D. WEIHEOffice Assistant


Please feel free to contact us with any questionsyou might have about tourism in the Faroe Islands.

Visit Faroe IslandsÍ Gongini 9Postsmoga 118110 Tórshavn Tlf. +298 20 61 00

[email protected]

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visit faroe islands - annual report

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