developing rural tourism businesses alan barefield southern rural development center...
TRANSCRIPT
![Page 1: Developing Rural Tourism Businesses Alan Barefield Southern Rural Development Center alanb@srdc.msstate.edu (662) 325-3207 Kathy Tweeten North Dakota State](https://reader030.vdocuments.us/reader030/viewer/2022032805/56649ee05503460f94bf0922/html5/thumbnails/1.jpg)
Developing Rural Tourism Businesses
Alan Barefield
Southern Rural Development Center
(662) 325-3207
Kathy Tweeten
North Dakota State University
(701) 328-9718
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What is tourism?
The practice of traveling for recreation. The guidance or management of tourists as a
business or governmental function. The economic activities associated
with and dependent on tourists.
Webster’s Dictionary
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What isRural Tourism?
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Rural Tourism Opportunities
• Hunting Services (Leasing & Guiding)
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Rural Tourism Opportunities
• Hunting Services (Leasing & Guiding)
• Fee Fishing & Guide Services
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Rural Tourism Opportunities
• Hunting Services (Leasing & Guiding)
• Fee Fishing & Guide Services
• Cabin Rentals
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Rural Tourism Opportunities
• Hunting Services (Leasing & Guiding)
• Fee Fishing & Guide Services
• Cabin Rentals
• Bed & Breakfasts
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Rural Tourism Opportunities
• Hunting Services (Leasing & Guiding)
• Fee Fishing & Guide Services
• Cabin Rentals
• Bed & Breakfasts
• Horseback Riding
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Rural Tourism Opportunities
• Hunting Services (Leasing & Guiding)
• Fee Fishing & Guide Services
• Cabin Rentals
• Bed & Breakfasts
• Horseback Riding
• Kayaking, Rafting, & Tubing
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Rural Tourism Opportunities
• Hunting Services (Leasing & Guiding)
• Fee Fishing & Guide Services
• Cabin Rentals
• Bed & Breakfasts
• Horseback Riding
• Kayaking, Rafting, & Tubing
• Off-road Biking
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Rural Tourism Opportunities
• Hunting Services (Leasing & Guiding)• Fee Fishing & Guide Services• Cabin Rentals• Bed & Breakfasts• Horseback Riding• Kayaking, Rafting, & Tubing• Off-road Biking• Festivals
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Rural Tourism Opportunities
• Hunting Services (Leasing & Guiding)• Fee Fishing & Guide Services• Cabin Rentals• Bed & Breakfasts• Horseback Riding• Kayaking, Rafting, & Tubing• Off-road Biking• Festivals• Museums
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Rural Tourism Opportunities
• Hunting Services (Leasing & Guiding)• Fee Fishing & Guide Services• Cabin Rentals• Bed & Breakfasts• Horseback Riding• Kayaking, Rafting, & Tubing• Off-road Biking• Festivals• Museums• Corn Mazes
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Problem AreasTo Address
• Lack of destination attraction in rural areas– Why would people come to your area to
visit?– Is there anything to keep them there?
– This could be a perfect opportunity to
COOPERATE!
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Problem AreasTo Address
• Lack of marketing expertise– There are many agencies, organizations,
and associations devoted to tourism– Many of these services are free– Contact the state department of tourism
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Problem AreasTo Address
• Undercapitalization– Tourism businesses typically have a long
startup period– Profit margins are usually thin (especially
in the startup period)– Occupancy or attendance rates are the key
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Problem AreasTo Address
• Lack of customer identification– Your market is probably not the world– What is the target group?
• Families• Singles• Seniors• Youth• Men• Women
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Marketing Considerations
• Determine the set of attractions that will make tourists stop or preferably stay in your area
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Marketing Considerations
• Determine your niche in this set– What product or service would you like to
produce that other people would want to buy?– Who will buy this product or service?– Develop a business plan to determine the
feasibility of this enterprise– The first step in the business plan is the
marketing study
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Marketing Considerations
• What is the targeted market?– How big is it?– What factors influence this market?– Is the market growing or declining?– What market share do you want to capture?– How does your business relate to the market?
• Will your business grow as the market grows?• Will your business decline as the market declines?
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Marketing Considerations
• Describe the competition– Who are your five closest competitors?
• The competitors for a bed & breakfast are not other bed & breakfasts
– What are the SWOTs of these competitors?• Strengths Weaknesses• Opportunities Threats
– How is your business different from the competitors?– How is it better?
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SweetwaterValley Farm
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Smoky Mountain Ham
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Fee Fishing& Guide Services
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Bird Watching
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Retention and Expansion of Agri-tourism Businesses
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opportunityisnowhere• Attitude
• Assess resources– Human– Financial– Natural
• Visit a like business
• Study the market
• Determine the feasibility
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Big Business!!!• North Dakota - $63.2 million increase in
visitor spending in 2003
• Second largest industry
• $4.0 million in sales tax revenue (03)
• Growth continues!!!!
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Customer Profile
• Millenial 8%
• Generation X 22%
• Baby Boom 39%
• Swing & WWII (Matures)
• Boomers -independentspend more moneytravel further
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Trends• Novelty and change
• Simplify life
• Group tours decreasing
• Family vacations
• Educational travel
• Remote areas
• Home state travel
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Trends Con’t.• Exercise and outdoor activity
• Back to nature
• Wildlife-related
• Create memories
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Fastest Growing Land-Based
• Bird watching
• Hiking
• Backpacking
• Primitive Camping
• Walking • Snowmobiling (fastest growing)
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Salary or wages29.6
Farm or ranch26.5
Outdoor recreation-related business14.8
Other Business10.6
Retirement/Invst. Income6.9
North Dakota Outdoor Recreation-relatedBusinesses, Income Characteristics, 2003
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Do You Know What This Is?
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Nesson Valley Gardens to ……
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….Thunderbird Ranch Gourmet Foods
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Key to Success
Plan with the end in mind.
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Community College Connection
• Technical assistance – Planning– Taxes– Legal structure– Feasibility analysis– Marketing – plan and tools– Best practices– Web page development
• Local advocate and supporter• Conducting a BR&E Visitation Survey
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