Sustainable Tourism Development: The Challenges of Small Businesses in a Shadow Destination

Outdoor Hub is a store in a tourist destination located in the suburbs of the well-known and popular tourist destination of Åre, Sweden. This study discusses how the store is affected by its status as a shadow destination of Duved (outside the hotspot of Åre). Shadow destination was first mentioned in 2003 by Hudman and Jackson and is a destination located in the ‘shadow’ of another. The other destination is often a famous one that many tourists prefer, which makes it difficult for nearby places to attract tourists. Outdoor Hub’s greatest challenge is attracting customers, as they are located outside the hotspot of the well-known tourist destination; however, it can also benefit from its location in the shadow of a prominent tourist spot. This case gives students a better understanding of how a company located on the outskirts of the main tourist destination can direct its business proposition towards existing and new customers. The study shows the students the company’s strengths and problems. It also discusses how the company can create long-term relationships with other tourist actors at the destination. Furthermore, the issues of segmentation, marketing and the role of tourist information in the store are raised.