Understanding Creative Tourism as a Potential Catalyst for Regional

Economic Development in Ultra-Peripheral Territories: Highlighting

Pilot-Projects in the Azores Islands

CARLOS SANTOS

Azores Sustainable Tourism Observatory (OTA) and The Centre of Applied Economics Studies of

the Atlantic (CEEAplA),

University of Azores,

9500-321 Ponta Delgada,

PORTUGAL

RUI ALEXANDRE CASTANHO

Faculty of Applied Sciences, WSB University,

41-300 Dabrowa Górnicza,

POLAND

and

College of Business and Economics, University of Johannesburg,

PO Box 524, Auckland Park,

SOUTH AFRICA,

and

CITUR - Madeira - Centre for Tourism Research,

Development and Innovation,

9000-082 Funchal-Madeira,

PORTUGAL

ORCID: https://orcid.org/0000-0003-1882-4801

GUALTER COUTO

School of Business and Economics and CEEAplA,

University of Azores,

9500-321 Ponta Delgada,

PORTUGAL

ORCID: https://orcid.org/0000-0001-5560-5101

Abstract:- The thematic literature demonstrates that some tourism typologies, such as, rural or creative

tourism, have a more prevailing function in obtaining regional development. Thus, this article examines

creative tourism as a potential catalyst for regional economic development in ultra-peripheral territories by

analyzing pilot-projects of creative tourism in the Autonomous Portuguese Region of the Azores. Through the

study, it was possible to verify, once more, an empirical nexus between creative tourism projects and regional

economic development.

Key-Words:- Creative tourism; remote territories; regional studies; territorial strategies; Tourism

management.

Received: October 28, 2022. Revised: November 20, 2022. Accepted: November 28, 2022. Available online: December 29, 2022.

1 Introduction

Tourism is considered strongly connected with

business models cooperating to ensure tourist

interest in a particular area or destination [1–9].

In this regard, tourism expansion suggests

promoting equipment, structures, and actions to

get the interest of tourists. Similarly, such actions

are designed to follow tourists, society groups,

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and the touristic destination and territory in line

with today's sustainable techniques and goals,

[10-13].

In the thematic literature, it is feasible to

comprehend that many authors have demonstrated

that some tourism types, as is the case of slow

tourism, rural tourism, or even creative tourism,

gain a predominant role in achieving regional and

territorial sustainability, [14-20].

If we look at Williams', [21], studies, we confirm

that "(...) employment in tourism contributes to

national and regional economies". Also,

empirical proof indicates that tourist purchasing

creates more sectorial employment and generates

opportunities than any other market sector of the

economy, [22–24].

Besides, regarding the literature review conducted

by Pimenta et al., [25]., it is possible to evidence a

strong connection between creative tourism and

territorial development. The previously mentioned

research points us that creative tourism works

"(...) through some type of reality transformation

process and demonstrates direct correlations with

cultural, material and immaterial factors, by

committing and involving local development

agents – public and private – in the elaboration

and implementation of cultural policies that attract

creative tourists."

Thus, the research team designed the following

empirical question: “The creative tourism pilot-

projects in the Azores Autonomous Region

contribute to the regional growth?”

This article is organized as follows. Section 2

reviews the thematic literature; Section 3

describes the used methodology; Section 4 reports

the results; Section 5 discusses and give us some

conclusions about the study result; and, finally,

section 6 shows the study limitations and

prospective research lines.

2 Empirical Literature

Focusing on the peripheral and ultra-peripheral

regions (remote and isolated regions), the known

literature reveals to us that financial-economic

maturation describes a catalyst for sustainable

development, [26–30]. Thus, the possibility of

producing various typologies of tourism - i.e.,

rural tourism, religious tourism, or creative

tourism - is deeply connected with

entrepreneurship, new business standards and

models, and the so-called Small and Medium-

Sized Enterprises, [30-35].

Meller and Marfán, [31], state that "(…) the

industrial sector is not the most appropriate

approach to activate sustainable development

processes in all contexts of remote territories".

Contextually, several other researchers as King,

[32], confirm that statement "(…) employment

created are transient as their continuity relies on

the regular flow of emigrants and tourists

returning to the places of origin". Likewise,

through the eighties, the promotion of jobs in

peripheral regions was primarily due to an

increase in the services sector, [36-38].

In this regard, numerous regional investigations

conducted in such particular regions proved that

tourist spending develops more jobs and income

than any other sector of the economy, [38-45].

Regarding creative tourism, the literature teel us

that it encourages regional growth and

development by adding value to endogenous

assets, fostering a creative green economy, and

not decreasing the socio-cultural sphere to the

activity consumption, [46]. Thereby, it opens

space for liberation, sovereignty, new adventures,

and solidarity, connecting with traditions and

effecting revenue through different tourist routes.

However, let's look once more at Pimenta et al.,

[25], research it is possible to realize that: "(...)

one could be left to wonder about the kind of

development concept addressed in the reviewed

literature and its correlation with creative

tourism".

In fact, if we analyze the reflections of Corrêa,

Silveira, and Kist, [47], it is possible to deduce

that there is a need to operate on growth

approaches, ideas, and structures that contain

regional financial, social, and ecological topics –

the main spheres of the so-desired sustainable

development. Nevertheless, other methods are

likely for creative tourism, as is the case of

Richards, [48], which assume the present position

of creative tourism and the various underlying

backgrounds globally.

So, we identify the nexus among creative tourism

and various growth processes and strategies could

guide us to mixed results relying on the region's

socio-cultural characteristics and cultural and

ecological values, [49-58] - i.e., the CREATOUR

AZORES Project.

3 Methodology

The present research is formed by 5 pilot projects

of creative tourism working in the Portuguese

Archipelago of the Azores (Figure 1). Thereby,

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the following pilot projects under analysis were:

(a) CDIJA; (b) Refunction Project –

GOODBYAZORES; (c) Art in Nature (Arte na

Natureza); (d) Discover the Azores through

Photography (Descubra os Açores através da

fotografia); and (e) Mahilawake. Regarding the

Azores Islands location, the 5 pilot projects could

be found in four of the 9 Azorean islands. 2 in São

Miguel Island (CDIJA and Art in Nature

projects); 1 on the Terceira Island (Refunction

Project – GOODBYAZORES); and 1 on Faial

Island (Mahilawake).

Contextually, testing tools were used. So, the

surveys and interviews were split into three specific

but complementary blocs: i) a Brief Description of

the Project and Planned Activities; ii) Business

Model; and iii) Culture, Creativity and Community

Impact. Moreover, the 12 primary interview

inquiries were, divided among all the interviews,

with queries sub-divided and developed. As an

outcome, the whole interview was formed by 15

questions. Within the interview inquiries, it was

possible to encounter open-ended questions, option

selection, and agreement-level promises (using a

Likert Scale).

Furthermore, bearing in mind the aim of the

research and the data gathering methods, the

investigation authors selected a method of data

treatment based on descriptive statistics and likened

the obtained outcomes with the current specialized

bibliography to scrutinize for a possible connection

among the pilot projects of creative tourism and the

Azores territorial governance and development.

Fig. 1: Geographic location of the projects in the

Azores territory.

4 Main Results

Table 1. Item-selection and Likert scale question –

summarized (Appendix A).

CDIJA

Refunction Project

–

GOODBYAZORES

Art in Nature

Discover the

Azores through

photography

Mahilawake

(1) Are most of

your customers

local, from

Mainland

Portugal or

foreign?

Foreigners

before the

pandemic;

Portuguese in

the pandemic

period

All

Portuguese

(2) Do you

know who your

potential

customers are?

Mostly USA citizens

Yes

People

interested in

artistic culture

People

interested in

photography

Middle/upper

class women

(3) Assess the

degree of

demand for

your creative

tourism offer

between

January and

April 2022.

3

2

5

3

(4) Do you have

partnerships

with tourism

companies?

Azorean Travel Agency

DMC and Cresaçor

Ongoing

Yes

Hotels

Yes

(5) Do you have

partnerships

with City

Councils or

Parish

Councils?

Not yet

Yes

No

(6) Do you have

partnerships

with national

and

international

magazines to

publicize and

promote your

project?

IBCCES; Blog:

TravelingDifferent.com;

Australian magazine

called "Travel Without

Limits”.

No

(7) Do you have

partnerships

with raw

material

suppliers?

No

Yes

No

(8) Have the

investments in

the project to

date been low,

moderate,

high?

Moderate

Low

(9) Are the

main costs of

your project

fixed (they

maintain the

same value

throughout the

year), variable

or hybrid?

Variable

Differs

according to

activities

No answer

Variable

(10) For the

success of your

project, is there

a need and

possibility to

invest more?

Yes

No answer

Yes

(11) What are

the elements of

your project

that have the

greatest cost

burden?

Human

resources? The

physical

resources?

Physical resources

Human resources

Promotion

No answer

Physical

resources

(12) Is your

project making

a profit?

Not at this stage

No

Yes

(13) Are most

of your

customers local,

from Mainland

Portugal or

foreign?

Foreigners

before the

pandemic;

Portuguese in

the pandemic

period

All

Portuguese

(14) Do you

know who your

potential

customers are?

Mostly USA citizens

Yes

People

interested in

artistic culture

People

interested in

photography

Middle/upper

class women

(15) Assess the

degree of

demand for

your creative

tourism offer

between

January and

April 2022.

3

2

5

3

Considering the business models and focus on the

CDIJA project's clients, it is possible to verify that

most are foreigners. In fact, the major part are

clients from the USA. About the audience, their bid

plans to protect homes and relatives with minors

with Autism. Thus, through the training

mechanisms for this specific audience, they will be

capable of strengthening the answer to a wide

target in the region of family tourism, inclusive

tourism, and healthiness tourism. Moreover, the

project's main actors consider that it is vital for the

costumers experience their activities, identifying

the "ready for autism" stamp as a qualified,

distinguished, and liable answer to the difficulties

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of these homes and families with children with

Autism. The project has eventually included any

customers or anticipations for the next summer

season. By now, those actors are exploring the

profile and encouragement of the clients through

the IBCCES (International Certification as a

Tourism Agent for Autism); numerous web

discussions with International Autism Associations.

Focusing on the Likert scale, they believe that the

demand capacity for their creative tourism project

bid among the Winter and Spring months of 2022

is mainly on level 3. So, this specific project has

collaborations with tourism enterprises, as is the

case of the Azorean Travel Agency DMC or the

Cresaçor, and the articulation with national and

international journals to advertise and boost the

project branding - i.e., IBCCES; Blog:

TravelingDifferent.com and Travel Without Limits

(a thematic international magazine). Also, no

synergies were related with City Councils or Parish

Councils yet, nor with basic material suppliers. The

Human Resources in this project are Travel Agents

and Therapists specializing in Autism; the physical

resources are the CDIJA - Children and Youth

Development Center of the Azores; the funding

resources are based on the fund PO2020; the

technical resources lays on the Partnership with a

task force of Azores University (UAc)

academicians and professors financed by this

initiative. In this sense, they believe the incomes

from the creative offer are adequate to sustain the

costs at different issues; the financial bet in the

project to the current day have been moderate; the

high costs of the projects are variables (based to the

activities and the seasonality); for the success of the

project, there is an essential and prospect to invest

more. The components of the project that include

the most significant expense commitment are the

physical resources. In fact, by now, in this project,

there is no profit yet.

Most Refunction Project – GOODBYAZORES

customers are from outside the Azores Region. The

GOODBYAZORES project aims to reach diverse

consumer segments/numerous audiences.

Considering the client experiences, the motivations

for consumer participation in this project ambition

depend on connection with new creative realities.

Currently, this project does not have any paid

clients yet. The project actions were integrated into

other major Cultural initiatives. According to the

project's main actors' statement, nine customers

were confirmed in the summer months.

Nevertheless, one goal is to reach a hundred clients

by the end of the high season. They analyze the

profile and incentives of their clients via exchange

and by following the path of other identical

promoters. Based on the Likert scale, they believe

the market for their creative tourism offer between

the Winter and Spring months of 2022 is mostly on

level 2. This project has not yet partnered with

tourism enterprises, national and international

magazines to publicize and promote the project,

and primary material suppliers. Nonetheless, the

project collaborated with City Councils or Parish

Councils, Cultural Associations, Artists/Promoters,

and Schools. The HR (Human Resources) in this

project are qualified; they have their physical

resources, their own and supported financial and

intellectual resources. They consider that the

incomes from their creative offer are not adequate

to support the costs; the investment assets in the

project to date have been low; the high costs of the

projects are variables (the value differs according

to the activities, the seasons of the year); for the

success of the project, there is a need and

possibility to invest more. The components of the

project that have the most significant cost burden

are HR. This project does not have any profit, and

they are not happy with the project's economic

returns.

The prevalence of Art in Nature project customers

in Portuguese since the Covid-19 outbreak. In the

pre-pandemic period, they were international. Their

likely customers are people interested in artistic

culture. This project targets various consumer

components based on this age. Considering the

client feedback, the motivation for consumers

experiencing this project is glimpsing for

something distinct; their interest in culture. In 2021

they had fifty-eight customers since they started

registering in the Summer months. Currently, they

have had thirty-two since the beginning of the year.

They have yet to confirm clients for future times

because they only know that days before the event.

The profile analysis and explanations of their

clients only through interaction during experiences.

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On a Likert scale, they consider that the demand for

their creative tourism offer between January and

April 2022 is on level 5. This project has

partnerships with tourism companies, City Councils

or Parish Councils, and raw material suppliers.

Nevertheless, it needs to have national and

international journals to advertise and elevate its

project. They have qualified HR and economic and

intellectual resources. They do not have physical

resources. They have their physical resources, their

supported economic resources, and their

intellectual resources. They believe that the gains

from their creative offer are not sufficient yet to

subsidize the costs; the investments in the project to

date have been low; the main costs of the projects

are variables (the value differs according to the

activities); for the success of the project, there is a

requirement and opportunity to invest more. The

project segments with the most significant cost

burden are to promote it. This project does not have

any profit.

The Discover the Azores photography project

customers are mainly native. The clients are people

who like photography, their probable clients, and

their target audience. The preference for

photography is the reason why consumers

experience this project, based on their feedback.

From the start of their creative tourism project to

the present, they have had 41 customers, and they

have had one from the beginning of 2022 to the

present. This project does not have specified or

expected clients in the future times. They study the

profile and incentives of their clients through

conversations during experiences. Considering the

Likert scale, they believe that the demand for their

creative tourism offer between the Winter and

Spring months of 2022 is mostly on level 3. This

project has associations with tourism companies

(hotels) but not with City Councils or Parish

Councils, national and international journals to

promote and elevate their project, and not with raw

material suppliers. There is no information

available regarding the existing resources in the

project (human, physical, financial,

intellectual)assume that the incomes from their

creative offer are sufficient to keep the costs; the

investment in the project to date has been low; This

project has profit, and they are satisfied with the

project's returns.

The vast of Mahilawake project customers are

Portuguese. Their potential clients are

middle/upper-class women. The project's target

audience is inquisitive in adventure, travel, and

self-development. Considering the client feedback,

the motivations for client participation in this

project ambition depend on the fact that it is a

distinct product in the Azores Region and linked to

well-being. From the very beginning of the project

to the current moment, they have had 12 clients.

They have 4 customers from the beginning of the

year 2022. Also, 4 clients are confirmed for the

summer activities, and 18 to 20 are expected. They

study the profile and motivations of their customers

through interactions during experiences. On a

Likert scale, they consider that the demand for their

creative tourism offer between January and April

2022 is on level 3. This project has collaborations

with tourism companies, but not with City Councils

or Parish Councils, national and international

magazines to publicize and promote their project,

and not with raw material suppliers. The human

resources in this project are qualified in some

aspects and not others; they have any physical

resources; the financial resources are their own; the

intellectual resources lay on their brand and logo.

Furthermore, they believe that the revenues from

their creative offer are sufficient to support the

costs; the investing investments in the project to

date have been low; the main costs of the projects

are variables; for the success of the project, there is

a need and possibility to invest more. The elements

of the project that have the most significant cost

burden are physical resources. This project has

profit, but they still need to bet satisfied with the

project's profit.

5 Discussion and Conclusions

About the business model of the five analyzed

projects, from the acquired outcomes, it is possible

to demonstrate 2 prominent models: 1) for the

international tourist (foreign) and 2) for the

national and regional tourists (Portuguese). Still, a

clear tourist profile pattern appears in both business

models: "a tourist that seeks an artistic, rural and

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nature-based tourism." These results appear to

confirm the actuality in the low-density, isolated

and ultra-peripheral regions during the SARS-CoV-

2 outbreak, where the tourist looks for such tourism

types, [59-65].

Contextually, looking back to the year 2019, it was

an amazing period in outcomes provided by

tourism for the Azores' ultra-peripheral region. In

the Spring of 2020, the world stopped with the

SARS-CoV-2 outbreak, and an unprecedented loss

of confidence in the tourist market was observed,

[66]. However, rural tourism, ecotourism, and

several other types of slow tourism that were

earning pertinence in the pandemic and after the

pandemic crisis period appear to evolve into the

new tourism paradigm. So, such specific territories

are the most engaging for this new tourism pattern,

[63-66]. Also, UNWTO sustains that rural tourism

is even more significant once tourists glimpse

uncongested destinations with open-air actions

during the SARS-CoV-2 pandemic, [67-70].

Besides, after the pandemic, the European

Parliament (EU) has launched several new actions

and strategies that should be assumed about

tourism sustainability – as is the case of the EU

plan for sustainable tourism, [71].

Thereby, the 5 case studies of creative tourism head

fit exactly that path way. Thus, it is suggested that

the regional administration, local leaders, and other

pertinent actors and players in this territory aid and

develop techniques to boost these projects (and

parallel initiatives) once they not only add to the

regional development and destination publicity but

also for the so-desired sustainable development and

growth. In fact, by these types of tourism, mass

tourism is, in theory, avoided. Also, the analyzed

creative tourism pilot projects permit regional

financial regeneration through the collaborations

carried out through these projects with other

organizations and regional suppliers.

In concluding thoughts, it is possible to confirm

that in this isolated region, the tourism sector was

already taking importance since 2019, benefiting

from a substantial sample of entrepreneurs and

players in the tourism sector in the Autonomous

Region of the Azores; besides, the above-

mentioned was established by prior thematic

investigations, [12, 15, 26].

6 Research Limitations and Future

investigation Lines

From the many limitations of this study, it is

conceivable to emphasize the undertaking of the

testing instruments within the SARS-CoV-2

pandemic period. Because of that specific period,

the research team felt some limitations - i.e., in the

responses provided by the participants once it was a

moment of very apprehension for the tourism

sector. However, some of the responses received

were vague by such actors. Furthermore, if

additional procedures or research methods were

used, as is the case of advanced statistics, more

understanding was predicted to obtain, as well as if

further inquiries were made and if more projects

were analyzed. Similarly, if a more comprehensive

and diverse sample was used – i.e., including the

inhabitants in general, the tourists, the

entrepreneurs from other projects, and several other

players – it was likely to handle this problem from

an abroad point of view. Also, the originality of

this study should be stressed, which could be found

in its application to the dimensions of the

consequences generated by the pilot projects of

creative tourism in the Azores Autonomous Region

and its connection to future regional growth.

Likewise, this investigation can be replicated in

other locations and contribute to comparison

reflections, stimulating the discussion on this topic

and obtaining advancements in the specific

literature.

Acknowledgements:

This paper is financed by Portuguese national funds

through FCT–Fundação para a Ciência e a

Tecnologia, I.P., project number UIDB/00685/2020

and also by the project CREATOUR Azores –

Turning the Azores into a Creative Tourism

Destination (ACORES-01-0145-FEDER-000127).

CREATOUR Azores is coordinated by the Azores

Sustainable Tourism Observatory and developed in

partnership with the University of the

Azores/Gaspar Frutuoso Foundation, being

financed by the FE-DER, through the Azores

Operational Program 2020 and by regional funds,

through the Regional Directorate for Science. and

Technology.

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This paper is financed by Portuguese national funds

through FCT–Fundação para a Ciência e a

Tecnologia, I.P., project number UIDB/00685/2020

and also by the project CREATOUR Azores –

Turning the Azores into a Creative Tourism

Destination (ACORES-01-0145-FEDER-000127).

CREATOUR Azores is coordinated by the Azores

Sustainable Tourism Observatory and developed in

partnership with the University of the

Azores/Gaspar Frutuoso Foundation, being

financed by the FE-DER, through the Azores

Operational Program 2020 and by regional funds,

through the Regional Directorate for Science. and

Technology.

Contribution of Individual Authors to the

Creation of a Scientific Article (Ghostwriting

Policy)

The authors equally contributed in the present

research, at all stages from the formulation of the

problem to the final findings and solution.

Sources of Funding for Research Presented in a

Scientific Article or Scientific Article Itself

Conflict of Interest

The authors have no conflicts of interest to declare

that are relevant to the content of this article.

Creative Commons Attribution License 4.0

(Attribution 4.0 International, CC BY 4.0)

This article is published under the terms of the

Creative Commons Attribution License 4.0

https://creativecommons.org/licenses/by/4.0/deed.en

_US

Appendix

CDIJA

Refunction Project

–

GOODBYAZORES

Art in

Nature

Discover the

Azores

through

photography

Mahilawake

(1) Are most of your

customers local,

from Mainland

Portugal or foreign?

Foreigners

before the

pandemic;

Portuguese

in the

pandemic

period

All

Portuguese

(2) Do you know

who your potential

customers are?

Mostly USA citizens

Yes

People

interested

in artistic

culture

People

interested in

photography

Middle/upper

class women

(3) Assess the

degree of demand

for your creative

tourism offer

between January

and April 2022.

3

2

5

3

(4) Do you have

partnerships with

tourism companies?

Azorean Travel Agency

DMC and Cresaçor

Ongoing

Yes

Hotels

Yes

(5) Do you have

partnerships with

City Councils or

Parish Councils?

Not yet

Yes

No

(6) Do you have

partnerships with

national and

international

magazines to

publicize and

promote your

project?

IBCCES; Blog:

TravelingDifferent.com;

Australian magazine

called "Travel Without

Limits”.

No

(7) Do you have

partnerships with

raw material

suppliers?

No

Yes

No

(8) Have the

investments in the

project to date been

low, moderate,

high?

Moderate

Low

(9) Are the main

costs of your project

fixed (they maintain

the same value

throughout the

year), variable or

hybrid?

Variable

Differs

according

to

activities

No answer

Variable

(10) For the success

of your project, is

Yes

No answer

Yes

WSEAS TRANSACTIONS on BUSINESS and ECONOMICS

DOI: 10.37394/23207.2023.20.28

Carlos Santos, Rui Alexandre Castanho,

Gualter Couto

E-ISSN: 2224-2899

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Volume 20, 2023

there a need and

possibility to invest

more?

(11) What are the

elements of your

project that have

the greatest cost

burden? Human

resources? The

physical resources?

Physical resources

Human resources

Promotion

No answer

Physical

resources

(12) Is your project

making a profit?

Not at this stage

No

Yes

(13) Are most of

your customers

local, from

Mainland Portugal

or foreign?

Foreigners

before the

pandemic;

Portuguese

in the

pandemic

period

All

Portuguese

(14) Do you know

who your potential

customers are?

Mostly USA citizens

Yes

People

interested

in artistic

culture

People

interested in

photography

Middle/upper

class women

(15) Assess the

degree of demand

for your creative

tourism offer

between January

and April 2022.

3

2

5

3

WSEAS TRANSACTIONS on BUSINESS and ECONOMICS

DOI: 10.37394/23207.2023.20.28

Carlos Santos, Rui Alexandre Castanho,

Gualter Couto

E-ISSN: 2224-2899

306

Volume 20, 2023