Rethinking Tourism Promotion Nordic-Baltic Region: A New Balance Between Public and Private Sectors

Rethinking Tourism Promotion in Finland and the Nordic-Baltic Region: A New Balance Between Public and Private Sectors
How can national tourism organisations, regional destinations and commercial travel companies work together more effectively to generate international demand, improve accessibility and turn marketing investments into measurable tourism sales?              By Kari Halonen, ToolBox Consulting Ltd.

A necessary debate about the future of tourism promotion
The initial inspiration for this article came from an interview conducted as part of a study commissioned by Finland’s Ministry of Economic Affairs and Employment (TEM). The discussion focused on how Visit Finland’s operations and its cooperation with the tourism industry could be developed.

The questions were direct and highly relevant: Does Visit Finland use public funding to provide services already available from private companies? Does the current structure discourage cooperation between public and commercial organisations? Could more activities be delivered by the private sector? And, most importantly, what would a more commercially effective international tourism promotion model look like?

These questions deserve serious attention.

Having worked in international travel trade promotion across Finland, Sweden, Norway, Denmark, Iceland, Estonia, Latvia and Lithuania, I believe the discussion should extend beyond Finland. Similar challenges concerning public funding, organisational responsibilities, overlapping services and access to international distribution channels can be identified throughout the Nordic and Baltic region.

The issue is not whether national tourism organisations or regional destination management organisations (DMOs) are needed. They certainly are. The real question is whether their current responsibilities, priorities and operating structures generate the greatest possible value for the tourism industry.

We need to move from an organisation-driven system towards a market-driven and commercially accountable model.
1. Limited resources should not be wasted on overlapping activities
Tourism promotion budgets in the Nordic and Baltic countries are relatively modest compared with the financial resources required to build strong international consumer brands.

Nevertheless, national and regional tourism organisations are often expected to perform an exceptionally broad range of activities: destination branding, international marketing, market research, product development, digital platforms, workshops, sales missions, familiarisation trips, training programmes and coordination between stakeholders.

Many of these services are already provided by private companies.

For example, ToolBox Consulting organises international workshops, trade fair participation, sales calls, roadshows, buyer familiarisation programmes, market analyses and free market-information webinars across the Nordic and Baltic region. In several markets, private operators can provide these services more frequently, across a wider geographical area and with direct commercial accountability.

When publicly funded organisations offer similar services free of charge or at subsidised prices, private companies may find themselves competing against activities financed through taxation.

This does not automatically mean that public organisations are distorting competition. Public intervention can be justified when markets fail to provide necessary services. However, the justification should be transparent, and the commercial consequences should be evaluated.

A fundamental principle should be established: Public funding should create opportunities for commercial activity rather than unnecessarily duplicate services that the market can already deliver.

2. National tourism organisations should concentrate on country branding
One of the most important responsibilities of a national tourism organisation is to establish a distinctive and internationally recognised destination brand.

Finland, for example, possesses internationally attractive strengths: nature, safety, design, technology, sustainability, education, wellbeing and distinctive seasonal experiences. These characteristics should form the foundation of consistent, long-term international brand development.

However, country branding and selling individual tourism products are fundamentally different activities.

A national organisation should generate awareness, interest and demand. Commercial companies should transform that demand into products, contracts, reservations and revenue. With limited resources, it is unrealistic to expect Visit Finland or any other Visit organizations to operate simultaneously as a global branding agency, international sales organisation, regional development authority, training provider and organiser of commercial travel trade events.

A stronger concentration of discretionary marketing resources on international visibility and demand creation would make its national role clearer. The same principle applies to other Nordic and Baltic national tourism organisations.

Cross-marketing beyond the tourism industry
Another important opportunity is cooperation with companies outside tourism.

Why should destination branding partnerships be restricted primarily to hotels, airlines, destinations and other tourism-related organisations? Finland has internationally recognised businesses and expertise in technology, design, consumer products, sports, music, food, education and lifestyle.

These sectors reach audiences that conventional tourism campaigns may struggle to access.

A national Brand Finland Tourism Partnership programme could bring together tourism promotion and internationally active brands through joint campaigns, content, distribution channels and shared marketing investments.

For example, a hypothetical campaign combining €1 million in public marketing funding with €1 million from private partners would double the available campaign resources.

The objective should be to identify partners based on their international reach, brand compatibility and target audiences, not simply their connection to the tourism industry.

3. The DMO structure should support businesses, not become a gatekeeper
Regional tourism organisations play an important role in destination development, local coordination and maintaining the quality of tourism services.

However, their position within publicly funded tourism promotion structures deserves reassessment.

In Finland, cooperation between Visit Finland, larger tourism regions and local DMOs can create an additional organisational layer between international buyers and the companies actually selling tourism products.

Not all DMOs possess sufficient international sales experience, financial resources or commercial networks to represent the full potential of their regions.

At the same time, incoming operators, DMCs, hotel groups, transport providers and private sales organisations may already maintain established relationships with international tour operators.

Why should their access to national marketing programmes depend on cooperation through a particular regional organisation?

International buyers are interested in products, prices, availability, reliable suppliers and functioning distribution channels. They do not necessarily need another administrative intermediary.

A more open model should allow tourism companies and commercial intermediaries to participate directly in international programmes.

DMOs should remain important partners, but their involvement should add identifiable value rather than be an automatic requirement. This is particularly relevant for companies selling itineraries across several Finnish regions or combining destinations in multiple Nordic and Baltic countries.

4. International travel trade promotion must lead to actual sales
One weakness in tourism promotion is the tendency to measure activity rather than commercial outcomes.

Organisations frequently report the number of events attended, buyers met, marketing impressions generated and familiarisation trips organised. These figures may demonstrate activity, but they do not necessarily demonstrate success.

The real questions should be:

Did international tour operators introduce new products? Were distribution agreements signed? Did tourism companies receive additional bookings? Did visitors stay longer, travel outside established destinations or spend more money?

The entire process should connect marketing, product development, accessibility, distribution and sales.

A buyer attending a workshop should be able to communicate directly with relevant suppliers and continue negotiations after the event. Buyer contacts should not remain unnecessarily within the internal databases of public or regional organisations.

Naturally, contact sharing must respect data protection legislation and legitimate commercial confidentiality. Nevertheless, publicly supported programmes should be designed to facilitate direct business relationships, not restrict them.

DMCs, incoming operators and international tour operators should also be involved much earlier in product development and market planning.

This is especially important in long-haul markets such as Australia, Asia, North America and the Middle East, where distribution partnerships and market-specific products often require considerable preparation.

The success of international tourism promotion should ultimately be evaluated through business generated, not merely meetings organised.

5. Air connectivity must become part of the commercial strategy
International accessibility is one of the most important factors influencing tourism growth, particularly in geographically peripheral destinations such as Finland.

Closer cooperation between Finavia, Visit Finland, airlines, international tour operators and commercial tourism companies is essential. Route development should not be treated separately from tourism marketing and product distribution.

When a new international air service is being considered, commercial operators should participate at an early stage. Airlines need evidence of passenger demand. International tour operators need attractive, bookable products. Incoming companies need viable pricing, capacity and transport connections.

Visit Finland can contribute destination marketing and market intelligence, while Finavia contributes aviation expertise and route-development information. Private companies can provide actual buyer demand, distribution relationships and sales forecasts.

The same approach should extend beyond airports.

International visitors need functioning travel chains connecting flights with trains, buses, ferries, accommodation and local transport.

For Finland, this includes access to Lapland, Lakeland, the western coast and eastern Finland, as well as opportunities for multi-country Nordic and Baltic itineraries. A coordinated air-access and tourism-sales programme would link new routes directly with market development and measurable visitor spending.

6. A more commercial model for Nordic-Baltic tourism promotion
The future model should not require establishing another large administrative organisation.

Instead, it should be based on clearer responsibilities, open participation and competitive service provision.

• A proposed division of responsibilities
• Stakeholder Primary responsibility
• National tourism organisations Country branding, strategic international marketing, market intelligence and broad partnerships
• Finavia and other airport operators Airport accessibility, route development and airline cooperation
• Regional DMOs Local destination development, regional coordination and service readiness
• DMCs and incoming operators Tourism product development, international distribution, contracts and sales
• Hotels and tourism service providers Commercial products, pricing, capacity and customer experience
• Private B2B promotion companies Workshops, roadshows, buyer networks, sales events and commercial market development
• Airlines and transport companies Transport capacity, connectivity, distribution and integrated travel chains

This division should be flexible rather than absolute. Public organisations may continue to support specific commercial initiatives where there is a demonstrated market failure or wider public benefit. However, publicly funded operational services should be openly procured whenever appropriate, allowing qualified private providers to compete on equal terms.

Commercial sales promotion should primarily be financed through participating companies, partnerships and market-based services.

Public funding should concentrate on shared benefits: destination awareness, accessibility, strategic market information, infrastructure and justified development programmes.

Such an approach would reduce duplication, encourage innovation and allow businesses to select the international partners most relevant to their commercial objectives. It would also make the system more responsive to changes in global tourism demand.

7. From discussion to implementation: priorities for 2027–2030
Reform should begin with an independent assessment of publicly funded tourism promotion activities.

This assessment should identify overlapping services, administrative costs, procurement practices, commercial impacts and the actual outcomes of international marketing investments.

Private tourism companies, incoming operators, DMCs and international sales specialists must be included in the evaluation.

During 2027, two or three pilot markets could test a new operating model in which national destination branding and privately delivered B2B sales promotion are separate but coordinated activities.

These pilots should also examine cooperation between airport operators, airlines and tourism companies.

In 2028, the results should be compared with existing approaches, using indicators such as new distribution agreements, products introduced into international sales channels, confirmed bookings, visitor expenditure and the effectiveness of public investment.

Successful practices could then be expanded across additional markets during 2029–2030.

Importantly, reform should not be measured solely by administrative savings. The principal objective must be stronger tourism exports, greater private investment and improved international competitiveness.
Conclusion: Public organisations should enable business, not replace it
The Nordic and Baltic countries possess exceptional tourism potential, but international competition is becoming increasingly demanding.

Limited public resources must be used where they generate the greatest collective value.

National tourism organisations have an essential role in strengthening destination brands and creating international demand. Regional organisations contribute local knowledge and destination development.

Private companies bring something equally important: commercial relationships, entrepreneurial initiative, market responsiveness and responsibility for turning opportunities into revenue.

These strengths should complement each other rather than overlap unnecessarily.

The objective is not to weaken public tourism organisations, but to make their contribution more focused, transparent and effective.

The future of international tourism promotion should not be determined by how many activities public organisations deliver themselves.

It should be determined by how much additional, sustainable and profitable tourism business their activities make possible.

That is the fundamental change needed in Baltic and Nordic countries — and a discussion worth having throughout the Nordic and Baltic region.

 

About the author: Kari Halonen is the CEO of ToolBox Consulting Ltd., a Finnish company founded in 2000 and specialising in international B2B tourism promotion, sales workshops, market development and travel trade cooperation across the Baltic and Nordic countries.This article presents an independent industry perspective and proposals for reform. It is not a legal assessment or a verified audit of Visit Finland’s expenditure or competitive effects.