Showing posts with label Tourism. Show all posts
Showing posts with label Tourism. Show all posts

Thursday, March 22, 2012

Maximus Musicus - A Startup Profile

[Original Post Written @http://startupiceland.wordpress.com]
Hallfríður Ólafsdóttir came to our Rotary Club and spoke about her journey in creating Maximus Musicus, a little mouse and a very popular character with children in Iceland and 6 other countries. She is an accidental entrepreneur because she is the lead flutist with the


Icelandic Symphony Orchestra and she recalled just waking up one morning with the idea to use a Little Mouse character to get Children engaged in Classical Music. She shared with us her adventures and development of her business. Two books with music examples have been published and the third is on the way. She is on her way with the Iceland Symphony Orchestra to perform her Maximus Musikus at Kennedy Center in 2013 at the Nordic Cool festival! It is fascinating to think about the teachings and learnings that goes on in an Orchestra and most children don't really know what happens behind the scene until they are taken to a show. Hallfridur, has through her books, symphony composition, songs, apps and other media has connected with Children and during the first symphony orchestra that was conducted in Iceland, there were more than 600 children in the audience and they already knew about the Maximus and they followed through the entire narrative, the music and the experience of being in an Orchestra concert.
It was great to hear Hallfridur talk about how the energy of the children invigorated the musicians and the performers. There were a number of questions, and the most popular one is how did you find the time to keep your day job and also produce the music score, the books, the stories, the art works, the website etc etc etc and Hallfridur's answer was very simple, She just knew she had the energy to do this because she was so passionate about the project... sounds familiar! The common trait of every entrepreneur, there is something that we cannot explain that drives us, it is not riches, it is not money it is something far more important... a sense of Purpose.
It was inspiring to hear Hallfridur's journey, but what was even more interesting to me was her success has be curtailed by Content Brokers i.e Book Publishers, for example the English version of the books are not available in Iceland but only available in Australia although it would probably sell the most in Iceland because of all the tourists who come to Iceland would like to take something as a local gift to their children, grandchildren or nieces and nephews. All the tourists visit Harpa where there is a Maximus Musicus Corner, but the tourists probably will not buy an icelandic version because they don't speak Icelandic. She was passionate about the creation but did not have a very good advisor against the group that relies on "Scarcity as a Business Model", Fred Wilson has written about it. I just don't get it! why the heck can't the book publishers understand that their customers should dictate how they want to consume the books rather than them dictating how they will allow the content to be consumed? Such a waste, I bet Hallfridur is probably loosing a large amount of sales that she could possibly do in Iceland during the peak tourist season. I can think of so many ways to market and sell this great product. They have games and apps in the app store etc. So go check it out!
Enhanced by Zemanta

Thursday, January 26, 2012

How many tourists are going to visit Iceland in 2012

English: Eruption of Strokkur close by. França...

Spoke at conference on Tourism and Investment yesterday. I may have said things that were not in agreement with the rest of the speaker as it relates to the number of tourist visitors to Iceland. I think everyone wants to believe that the upward trend is going to continue but I disagree. My assessment is that 2011 was by far the best year and it was the peak, 2012 will be flat or can be lower than 2011. Here are my reasons:
  1. Travel today is easy, you can find remote places, book your ticket, learn more about the place before you leave your chair and get connected with local people and/or ask your friends/family/trust network how is this place you are visiting. Given this background, the choice of travel destinations have widened a lot. Iceland has to compete with all other remote, unique and different places. What is going for Iceland is the nature and the experience past travelers have had
  2. Euro Zone is going to go into recession and the first thing anyone cuts when you need to conserve is Travel
  3. However, US market is picking up so there may be more visitors coming from there to offset the slowdown from the Euro zone countries.
  4. Iceland had one of the best PR and marketing campaign conducted by the Global media in 2010 because of the Eyjafjalljokul eruption and then again in April of 2011 there was another smaller eruption. The pictures, videos and discussion of the volcano basically brought attention to Iceland and that drove the tourism numbers. Nothing like that has happened in the past 6 months.
Let me illustrate with the following three graphs, the first one is just the % change between years of Foreign tourists overnight stays, the second one is the absolute number of overnight stays by foreigners and the third one is a trend of searches for the word "iceland" in Google. If you look at the second graph, the absolute value, sure it is an upward trending graph but if you look at the % change the numbers don't look all that great. It has rebounded but nothing to the level that we seen even in 2005. The bounce can be attributed to various reasons, the volcano, Inspired by Iceland campaign, Icesave in the news etc. The good thing is that those who have visited Iceland always have great things to say so the network effect might draw others to want to come. These are smaller effects compared to the forces of Recession. It is more like comparing a Tsunami to a ripple. My philosophy on predicting the future or forecasting is very similar to George Soros, "Markets are unpredicatable, so I don't try to predict their direction". The long term prospects of Tourism in Iceland is very attractive, however, our investment thesis in Iceland is not based on the absolute number of growth but Niche growth of the higher end tourists who are looking for something unique and Iceland fits that bit fantastically and that is where we are investing.
Here is a graph from Google Insights for Search:



Enhanced by Zemanta