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ICT and e-business in the tourism industry ICT adoption ... - empirica

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Tourism<br />

CASE STUDY: SUCCESSFUL INTERMEDIATION EFFORTS IN<br />

LITHUANIAN FARM-STAY TOURISM / COUNTRYSIDE TOURISM<br />

ASSOCIATION OF LITHUANIA<br />

Abstract<br />

The non-governmental organisation (NGO) Lithuanian Countryside Tourism<br />

Association (from now on LCTA) unites over 1,000 <strong>bus<strong>in</strong>ess</strong>es <strong>in</strong> Lithuania provid<strong>in</strong>g<br />

countryside (farm-stay) <strong>tourism</strong> services. The NGO is active <strong>in</strong> promotion, tra<strong>in</strong><strong>in</strong>g <strong>and</strong><br />

lobby<strong>in</strong>g on behalf of Lithuania’s countryside farm-stay owners. In 2003 LCTA has<br />

implemented an <strong>in</strong>novative e-<strong>bus<strong>in</strong>ess</strong> onl<strong>in</strong>e tool – a special search eng<strong>in</strong>e allow<strong>in</strong>g<br />

users to browse through <strong>the</strong> Lithuanian farm-stays <strong>and</strong> craftsmen activities with<strong>in</strong> a 50 km<br />

radius accord<strong>in</strong>g to <strong>the</strong>ir preferences. The implementation of this tool has resulted <strong>in</strong> a<br />

significant <strong>in</strong>crease of (especially foreign) farm-stay travellers visit<strong>in</strong>g Lithuania. S<strong>in</strong>ce <strong>the</strong><br />

implementation of <strong>the</strong> web search tool almost 100% of surveyed foreigners <strong>and</strong> 60% of<br />

local visitors <strong>in</strong> farm-stays have found <strong>the</strong>ir accommodation via this eng<strong>in</strong>e.<br />

Case study fact sheet<br />

Full name of <strong>the</strong> company:<br />

Location (HQ / ma<strong>in</strong> branches):<br />

Sector (ma<strong>in</strong> <strong>bus<strong>in</strong>ess</strong> activity):<br />

Year of foundation: 1997<br />

Number of employees:<br />

Turnover <strong>in</strong> last f<strong>in</strong>ancial year:<br />

Primary customers:<br />

Most significant market area:<br />

Focus of case study:<br />

Key words:<br />

Background <strong>and</strong> objectives<br />

Countryside Tourism Association of Lithuania<br />

K. Donelaičio st. 2-201, LT-44213 Kaunas<br />

Lithuania<br />

Farm-stay <strong>tourism</strong><br />

2 (full-time)<br />

Approx. 150,000 Euros<br />

Farm stay owners <strong>in</strong> Lithuania<br />

Unit<strong>in</strong>g <strong>and</strong> represent<strong>in</strong>g local farm-stay <strong>tourism</strong><br />

actors<br />

Onl<strong>in</strong>e search eng<strong>in</strong>e<br />

Re-<strong>in</strong>termediation, accommodation sector,<br />

countryside / farm-stay <strong>tourism</strong><br />

The farm-stay or countryside <strong>tourism</strong> <strong>in</strong> Lithuania has developed due to economic <strong>and</strong><br />

social pressure <strong>in</strong> <strong>the</strong> prov<strong>in</strong>cial regions of <strong>the</strong> country <strong>in</strong> <strong>the</strong> 1990s. Traditionally, poorer<br />

prov<strong>in</strong>ces were encouraged to change <strong>the</strong>ir ma<strong>in</strong> function from agriculture to more<br />

productive <strong>and</strong> susta<strong>in</strong>able activities like <strong>tourism</strong>. In addition, <strong>in</strong> <strong>the</strong> late 1990s, Lithuania<br />

was try<strong>in</strong>g hard to open negotiations for <strong>the</strong> EU accession which also meant that reforms<br />

had to be prepared for <strong>the</strong> local agricultural sector.<br />

After <strong>the</strong> negotiations with <strong>the</strong> EU had started <strong>in</strong> 2000, PHARE accession funds were<br />

made available to facilitate <strong>the</strong> growth of <strong>the</strong> farm-stay <strong>bus<strong>in</strong>ess</strong>. After a number of<br />

countryside <strong>tourism</strong> <strong>bus<strong>in</strong>ess</strong>es were established, it became obvious that <strong>the</strong>re was a<br />

need for <strong>the</strong> coord<strong>in</strong>ation of <strong>the</strong> promotion, tra<strong>in</strong><strong>in</strong>g <strong>and</strong> lobby<strong>in</strong>g of farm-stay owners.<br />

Hence <strong>the</strong> LCTA was founded <strong>in</strong> 1997. It was an <strong>in</strong>itiative of <strong>the</strong> M<strong>in</strong>istry of Agriculture,<br />

<strong>the</strong> <strong>tourism</strong> department <strong>and</strong> <strong>the</strong> local farm-stay owners who were experienc<strong>in</strong>g great<br />

89

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