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The experience industry is rapidly turning into an important
business area. In Finland Lapland is becoming the leading
province for the experience industry, which is being made
into the engine for the region in terms of both its image
and economy.
The Lapland Centre of Expertise for the Experience Industry
(LEO) is aiming to combine tourism, the new media, the entertainment
industry and top expertise in design into a source of livelihood
- with cooperation from research, training and local companies.
Regional financiers have already started projects worth tens
of millions of euros to develop the experience industry.
"The experience industry is a sector of industry that
attracts people to Lapland and also to the rest of the country.
The services produced by LEO bring added value and increase
competitiveness in experience industry companies," says
managing director Miikka Raulo.
LEO's concrete objective is to increase the turnover of the
experience industry from the 345 million euros achieved in
2000 to 450 million euros by 2006. Another objective is to
create 40 to 60 new companies and 300 to 500 new jobs.
"We've been successful. Dozens of new innovative experience
products and companies based on top-grade expertise have been
started. The turnover has grown to 385 million, 65 new companies
have been created and 330 jobs," Raulo says.
Lapland's Christmas brand becomes stronger
Raulo says that being a pioneer in technology is no longer
enough for success. What is needed now is the ability to conceptualize
the technology into a service product in a way that will provide
experiences.
"The product, as such, is not important; the services
associated with it and the experiences it offers are. Combining
technological expertise with business activities in the recreational
experience industry will improve competitiveness in the sector."
Raulo mentions a good example: the Christmas Bank project,
in which various areas of expertise combine successfully to
promote the feeling of experience. The Christmas Bank offers
not only the old, familiar and safe Christmas but also new
interesting elements associated with it. The Christmas Bank
supports the regeneration of Lapland's Christmas tourism product,
strengthens the region's Christmas brand and status as Father
Christmas's capital and seeks to extend the Christmas tourism
season.
More than tourism
The experience products shown on the website of Lapland Centre
of Expertise for the Experience Industry represent first-class
expertise and they have also achieved market success. The
various types of programmed services and tourism products
attract tourists, particularly from abroad.
"Customers are looking for unique encounters rich in
experience that are in many instances based on contrast i.e.
on what is different from their own culture and way of life.
Lapland and its essence provide a good contrast for tourists,"
Raulo says.
Although tourism is the engine for the experience industry,
it is not the only sector that provides experiences. Raulo
points out that products related to design, handicraft, animation
and AV production, and culture should produce an experience.
"Overall, the sectors in the experience industry support
each other, and in the competitive situation of the 2000s
keeping them separate is no longer justified," Raulo
states.
Making a business out of experiences
The National Technology Agency of Finland, Tekes, is preparing
a Recreational Experience Industry technology programme for
Finland. The Lapland Centre of Expertise for the Experience
Industry is actively involved in the preparations. A possible
programme could strengthen the competitiveness of companies
operating in the development of know-how-intensive service
products in Finland.
In order for a programme that networks companies and research
to achieve its aim, an experience industry and recreational
cluster will be decided on during the preparations, and the
value networks of the related business operations will be
identified. The needs for developing and exploiting the technologies
and the effect of the technology programme on the development
of business operations in the sector are also being examined.
"In a background report we look into the experience
industry from the perspective of tourism and related areas
of activity, such as the recreational equipment and entertainment
industries. This also includes the construction of facilities
and environments," says Eija Virtasalo, the head of the
Tekes technology unit.
Virtasalo says that research and development areas that will
be funded by the technology programme, which could start in
2005, will be identified once the report is completed.
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The experience industry
The experience industry brings together creative production,
technology and commercial economy in order to create
innovative experience products. The experience industry
embraces the sub-areas associated with tourism, design,
the new media and ICT, and entertainment and culture.
In addition, the importance and supply of well-being
and physical exercise are given constant emphasis.
Business operations are based on the supply of added
value for customers by exploiting elements that bring
experiences alongside products and services. Examples
of these elements include multi-sensualism, individuality,
permanence in the mind, surpassing oneself, uniqueness
or succeeding. The customer decides on the experience
and the service provider offers the framework that is
suited to it.
The significance of experiences has also been recognized
elsewhere. For example the Swedes talk of their own
'upplevelseindustri' 'experience industry', an entity
that contains 13 areas of activity such as tourism,
fashion, music, the media, art and design. Correspondingly,
in Denmark, western Europe and Great Britain they use
the terms 'experience economy' and 'creative industries'.
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www.elamystuotanto.org
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www.auroraborealisrovaniemi.com
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www.santaclaus.fi
>> www.tekes.fi
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