Research

Assessing Austria's Climate and Energy Model Regions (KEM)

An Evaluation of the Sustainability and Competitiveness of Destinations
The study examines how the Austrian Climate and Energy Model Regions (KEM) program strengthens the long-term competitiveness of tourism destinations through sustainable measures and collaborative governance.
Anna M. Burton, Astrid Dickinger & Michele Bettin (2026)
Through energy-efficiency measures and increased self-sufficiency, businesses are reducing their operating costs and enhancing their economic resilience.
The regions are reducing their vulnerability to fluctuating energy prices and fluctuations in demand and are protecting themselves against external shocks.
Credible sustainability branding and the preservation of cultural heritage enable a company to stand out from the competition and establish a clear position in the market.
Promoting local well-being and involving the community strengthen the coordination between residents and tourism businesses in a sustainable way.

Abstract of this study

Tourism destinations must make the transition to climate neutrality without jeopardizing their long-term competitiveness. By viewing the competitiveness of destinations as the result of sustainability transformations—in which environmental, social, and governance improvements create competitive advantages through cost resilience, market differentiation, and credible sustainability signals—this study examines the Austrian Climate and Energy Model Regions (KEM) program in two tourism regions. A logic model framework (Input-Activities-Output-Outcomes-Impacts) analyzes how program design and collaborative governance contribute to sustainability outcomes and competitiveness at the destination level.

A qualitative case study approach is used for program evaluation. Twenty-five semi-structured interviews with KEM stakeholders were analyzed using thematic analysis. Where available, the findings were triangulated with program documents and project records. The study maps KEM outputs, outcomes, and impacts to international sustainability and competitiveness frameworks.

KEM inputs (e.g., national co-financing, dedicated regional staff, program development tools/toolkits) enable activities (e.g., stakeholder engagement, energy audits, procurement support, training sessions), which generate concrete outputs (e.g., photovoltaic systems, environmental certifications) and, in turn, achieve relevant outcomes and impacts for the destinations. Outcomes include reduced energy costs, emission reductions, improved accessibility, and greater alignment between the local population and businesses. Impacts include clearer sustainability branding, greater resilience to energy shocks, the preservation of cultural heritage, and increased community well-being.

This study further develops the intersection of sustainability and competitiveness by providing a logic-model-based assessment of the effects of a national climate and energy program at the destination level. By deriving operationalizable indicators from the literature on competitiveness and validating them using triangulated qualitative evidence, the study offers a transferable monitoring template that makes the relationship between sustainability and competitiveness usable for other destinations undergoing a sustainability transition.

Key Findings of This Study

  • Institutional Framework: Stable, multi-year co-financing and dedicated regional KEM coordinators form the necessary foundation for successfully implementing climate protection measures across stakeholder boundaries.
  • Tangible Outputs in the Region: The program generates concrete deliverables such as photovoltaic systems, eco-certifications, connected mobility solutions, and accessibility upgrades.
  • Cost resilience: Efficiency measures and increased self-sufficiency lower companies’ ongoing operating costs and enhance their economic resilience.
  • Risk minimization: Reduceddependence on energy price fluctuations and demand risks lowers the destinations’ vulnerability to external crises and shocks.
  • Market differentiation: Credible sustainability branding, combined with the preservation of local cultural heritage, enables clear positioning and differentiation from the competition.
  • Social Acceptance (Social License to Operate): Enhancing local well-being and involving the local population ensure long-term harmony between residents and tourism businesses.
Branding
Energy
Climate neutrality
Sustainability

Prepared for what lies ahead in tourism