A “new tourism cycle” on the Canary Islands: scenarios for digital transformation and resilience of small and medium tourism enterprises

Abstract

PurposeThis paper discusses plausible future scenarios for small and medium tourism enterprises (SMTEs) in the “sun, sea and sand” destination of the Canary Islands (Spain) and assesses to what extent they are prepared to adjust to market changes and technological developments in the light of both sudden disruptions and long-term shocks.Design/methodology/approachA scenario analysis was made based upon expert interviews, leading to a 2 × 2 scenario matrix.FindingsAlthough regional, national and European strategies advocate digital transformation as a step towards building resilience and towards a more sustainable future, this study identifies two major uncertainties that can put that transformation at risk: a change of the traditional “sun, sand and sea” visitor to a more conscious, individual and inquisitive traveller or “Promad”, and the business culture of SMTEs.Research limitations/implicationsResilience for sudden and for slow-paced disruptions poses different challenges for SMTEs. Their next step in the digital transformation must take them form marketing and sales-oriented e-business to growing interconnectivity and innovation across supply chains.Practical implicationsA market change towards the “Promad” type of traveller causes at least a temporary mismatch of demand and supply. As many SMTEs miss either the knowledge or the resources to invest in digital transformation, the process will depend on support and coordination at destination level.Originality/valueThe study identifies, with the example of the Canary Islands, the difficulties for destinations and individual businesses in making the envisioned transition of mass tourism to more competitive forms of tourism with a smaller ecological footprint.

Promad problems in paradise

“…The work of Hernández Sánchez and Oskam (2022) has demonstrated that the SMTEs in the Canary Islands remain vastly unprepared for shocks to the tourism industry. There is minimal resilience across the board, but in particular, those who have not embraced digital transformation are at most risk.…”

Collaborative Partnerships, Religious Reputation Culture, and Digital Tourism Promotion in Support of Halal Tourism Villages

“…They are often deeply connected to the communities in which they operate, contributing to the socio-economic fabric of the region (Coles et al, 2017). However, SMTEs face various challenges, including limited resources, access to finance, market competition, and vulnerability to external factors like economic downturns or global crises (Hernández Sánchez & Oskam, 2022). Supporting the growth and sustainability of SMTEs is crucial for fostering a resilient and inclusive tourism industry.…”

“…The digitization of SMTEs has become a crucial aspect, representing a shift from conventional systems to digital systems as an effort to enhance the effectiveness and efficiency of its business and operational processes (Ngoasong, 2018). Numerous studies have explored the connection between digitization, partnership networks, and branding in the development of Micro-, Small, and Medium-sized Enterprises (MSMEs) in the tourism 16,2 industry (Ashari et al, 2014;Collins et al, 2003;Hernández Sánchez & Oskam, 2022;Kurniawati et al, 2022). Digitization of SMTEs prompts stakeholders in the creative economy to transform their business management from conventional practices to modern ones (Moza & Ban, 2023).…”

Tourism digital transformation and future supply chain competition: an integrated perspective on real options theory and digital competencies

“…Digital transformation is one of the leading innovative approaches for tourism enterprises to solve operational issues and strategic opportunities (S anchez and Oskam, 2022;Woolley and Lim, 2023); the digital transformation of tourism enterprises has solved operational issues and strategic opportunities and leveraged data analytics to gain insights into customer behavior, preferences, and market trends, enabling better decision-making.…”

“…The gaps between the study and prior research include prior research focused on the digital marketing of tourism enterprises (Dewantara et al, 2022;Gutierriz et al, 2023); that research needs more exploration into the impact of digital transformation on tourism supply chain competition. On the other hand, many studies have emphasized that digital transformation is an essential strategy for tourism enterprises facing the threats and challenges of the epidemic (S anchez and Oskam, 2022;Tang and Huang, 2023). Furthermore, few studies have discussed the role of technology interoperability in the advantages of tourism products and supply chain resilience; technology compromise will influence the digital transformation of tourism enterprises.…”