managing change a case study: niagara - okanagan...

PRESENTED BY:

ED BROOKER

NIAGARA COLLEGE

TTRA CANADA CONFERENCE

OCTOBER, 2008

Managing Change A Case Study: Niagara

OVERVIEW2

� Background – Driving down the ‘tourism highway’

� Oops – Road Construction (aka tourism downturn; the excuses)

� Did we miss the signs?

� What are our options?

� Perhaps the options are not the issue – the ‘driver’ is

� Relating all this to tourism research

Ed Brooker, Niagara College 'Managing Change‘, TTRA Canada 2008

BACKGROUND3

� Where have the tourist’s gone?

� They were here last year – they should be here this year!

Ed Brooker, Niagara College 'Managing Change‘, TTRA Canada 2008

19901990 20072007

� 703million international travelers

� 898million international travelers

� 6.5% average increase since 1950

� Source: World Tourist Organization

4

Start with Numbers

Ed Brooker, Niagara College 'Managing Change‘, TTRA Canada 2008

The Average The Average The AmericasThe Americas

� 6.5% (previous slide) � 2.5% annual growth rate

5

The America’s

Ed Brooker, Niagara College 'Managing Change‘, TTRA Canada 2008

Niagara Region6

� Key border crossing

� Key tourism area

� # of Americans coming to Canada dropping

� e.g. 14% drop in January, 2008 (TIAC)

� Same day car trips fell 20.4%

� 3.6 M overnight visitors are coming to NF, NY and 5.1 M to Buffalo but not crossing

Ed Brooker, Niagara College 'Managing Change‘, TTRA Canada 2008

The Detour7

� Drop in numbers attributed to various reasons:

� Passport Issues

� Currency Exchange

� Price of Fuel

� Terrorism

� SARs

� The Weather

Ed Brooker, Niagara College 'Managing Change‘, TTRA Canada 2008

TALC – An Alternative Explanation8

� Stage 1 – Exploration / Discovery

� Stage 2 – Discovery / Development

� Stage 3 – Development – Beginnings of Mass Tourism

� Stage 4 – Consolidation / Stagnation

� Stage 5 - Decline

Ed Brooker, Niagara College 'Managing Change‘, TTRA Canada 2008

Niagara’s Markets9

� Family Market

� Marineland

� Adults

� Casino

� Culinary

� Wineries

� Cultural

� Niagara-on-the-Lake

Ed Brooker, Niagara College 'Managing Change‘, TTRA Canada 2008

Niagara Visitor Mix10

Niagara Visitor Mix

0% 20% 40% 60% 80%

Day Visits

Overnight Pleasure

Overnight VFR

Overnight business

Other

Ed Brooker, Niagara College 'Managing Change‘, TTRA Canada 2008

Overnight AccommodationSource: Ontario Ministry of Tourism, 2007

11

Ed Brooker, Niagara College 'Managing Change‘, TTRA Canada 2008

Various SignalsVarious Signals Niagara’s SituationNiagara’s Situation

� Decline in visitors

� Emerging competition from newer destinations

� Destination no longer fashionable

� Outdated amenities

� New properties developing on periphery

� Diversification to conferences to keep #’s

� From 16 to 12 M

� New Casino’s in NF, NY (different reg’s)

� “It’s not the destination it used to be”

� Offering same

� Great Wolf Lodge

� New Convention Centre planned for 2009

12

Signs – of Maturity

Ed Brooker, Niagara College 'Managing Change‘, TTRA Canada 2008

Stoppin’ the slide

Rejuvenation Efforts

13

Ed Brooker, Niagara College 'Managing Change‘, TTRA Canada 2008

Longwoods Visitor and Image Study

2008 Study

Focused on the tourism issues facing Niagara

� Overall image compared to competition: “Great place to visit for a vacation

14

Ed Brooker, Niagara College 'Managing Change‘, TTRA Canada 2008

Efforts to Collaborate15

� At the Bi-National Level

� Binational Tourism Alliance

� Mayors – Niagara Falls

� At the Regional Level� Branding Niagara

Ed Brooker, Niagara College 'Managing Change‘, TTRA Canada 2008

Efforts to Rejuvenate16

� Branding – Econ. Development Initiative

� ‘N’ is...

� A symbol of an authentic place

� Flexible creative platform for communication

� Represents uniqueness

� A quality product, a badge of honour, a unifying force

Ed Brooker, Niagara College 'Managing Change‘, TTRA Canada 2008

Potential Guide Book Covers

17

Ed Brooker, Niagara College 'Managing Change‘, TTRA Canada 2008

The Flexibility of ‘N”

18

Ed Brooker, Niagara College 'Managing Change‘, TTRA Canada 2008

Need to Collaborate19

� Challenges

� STEs

� 12 Municipalities

� 4 key Markets

� Need to collaborate with New York City!

Ed Brooker, Niagara College 'Managing Change‘, TTRA Canada 2008

FAMILY BUSINESSES

NEED TO LOOK FURTHER AND DEEPER

20

What about the ‘driver’

Ed Brooker, Niagara College 'Managing Change‘, TTRA Canada 2008

How about some entrepreneurship?

� Need more than incremental improvements

21

Ed Brooker, Niagara College 'Managing Change‘, TTRA Canada 2008

The Necessary Shift22

Ed Brooker, Niagara College 'Managing Change‘, TTRA Canada 2008

Incremental vs. Radical InnovationAdapted from Callot, 2005

23

Adopted from

Flipo (2001)

Existing in the

firm

Not existing in

the firm

Existing on the

market

1

(modification,

adaptation,

revival)

2

(new service for

the firm)

Not existing on

the market

3

(service extended

but adapted to a

new market)

4

(totally new

service)

Ed Brooker, Niagara College 'Managing Change‘, TTRA Canada 2008

Market Driven vs. Market DrivingAdapted from Schindehutte, Morris and Kocak, 2008

24

� Market Driven

� Focus on customer

� Competitive positioning

� Market orientation

� Incremental innovation

� Market Driving

� Focus on all industry

participants

� Competition, alliances and

cooperation

� Entrepreneurial

orientation

� Radical / disruptive

innovation

Ed Brooker, Niagara College 'Managing Change‘, TTRA Canada 2008

Wrap -up25

� These principles can be applied to various contexts

� Ongoing research into the trigger points of innovation within SMTEs

� Thanks

Ed Brooker, Niagara College 'Managing Change‘, TTRA Canada 2008