Chapter Preparing tourism businesses for the digital future Abstract

Uptake of technologies: Barriers to uptake revolve around access to digital infrastructure, such as high-speed internet and Wi-Fi networks, which are necessary to access more advanced technologies such as cloud computing and data analytics. Internet speed impacts booking services, marketing and other business operations. Austria, Chile, France, Greece, Spain and Sweden, among other countries note that SMEs and microenterprises tend to have lower levels of uptake, which affects business visibility and reputation. The in-situ production of visitor experiences may require high-speed mobile broadband. Innovative walking tours, for example, might rely on Wi-Fi access to cloud services, geotagging, and augmented reality to bring to life historical visitor experiences and simulations such as those curated by the Heritage in Motion initiative. Local governments are increasingly providing Wi-Fi in public areas to support the delivery of seamless visitor experiences, evidenced in Korea (Box 2.5).

Access to resources: Lack of access to finance, information, knowledge networks, skills and time can be barriers to digital transformation (OECD, 2019d). Tourism SMEs may lack capital reserves, have difficulty qualifying for traditional loans or credit, or perceive the investment too risky. This limits the willingness of SMEs to invest in digital technologies when SMEs are anxious about return on investment. To overcome these barriers, programmes such as Scotland’s Digital Development Loan or Spain’s Digital Agenda offer funding support to encourage investment. Skills gaps and lack of access to initial and on-going training and business support is also an issue, while limited time, awareness and knowledge among SMEs may contribute to low levels of participation in such initiatives. In response, for example, Norway offers a one day training session for tourism professionals to improve digital skills at beginner and expert levels (Digital Competence 2.0). The shortened format is a good way to encourage upskilling while taking into account the limited time and resources of tourism SMEs.