Destination Facelift: Unveiling the Dynamic Capabilities that Rejuvenate Madeira Island

Sammanfattning: Title: Destination Facelift: Unveiling the Dynamic Capabilities that Rejuvenate Madeira Island Date of the seminar: 2nd of May 2023 Course: BUSN39: Degree Project in Global Marketing Authors: Ivelina Petkova & Sofia Rosin Supervisor: Magnus Nillson Keywords: Destination Rejuvenation, Dynamic Capabilities, Destination Repositioning, Destination Diversification, Destination Marketing, Madeira Island Research Purpose: The purpose of this research paper is to explore the dynamic capabilities that enable destination repositioning and diversification and investigate how they rejuvenate Madeira Island as a tourist destination. Theoretical perspective: Destination rejuvenation was originally presented as a stage in Butler's (1985) Tourism Area Life Cycle Model (TALC), however, it has become an independent focus area in research that concerns the repositioning and diversification of tourism destinations. Destination capabilities are a theoretical concept that determines a firm's ability to innovate and modernize. This concept has received limited attention when investigating tourism destinations. The main theories presented in this study formed a three-component theoretical framework. Methodology: The study adopted a qualitative research strategy with an abductive research approach. In total, eleven semi-structured interviews were conducted through a purposive sampling method with governmental, entrepreneurial and non-governmental stakeholders within the tourism industry of Madeira Island. The data was analyzed by means of a thematic analysis. Findings & Analysis: From the results this study identified two types of capabilities that can be adapted when considering the rejuvenation process of tourism destinations, destination capabilities and entrepreneurial capabilities. These capabilities enable various local stakeholders in Madeira Island to contribute to the rejuvenation of the island. Theoretical & Managerial Implications: The theoretical implications of this study emphasized the need for fostering collaboration and integration, as well as facilitating adaptation and innovation, and cultivating internal expertise. These components have been found to be crucial for destinations aiming to reposition and diversify. The managerial implications consist of a number of recommendations that underline the significance of preserving local identity, utilizing natural resources sustainably, and facilitating governmental support for successful destination rejuvenation.