For the following several conversations, let's assume one of two things. Either we're talking about a community that has never considered the notion of creating a tourism program, or we are talking about a community that has one, but would like to do it better - and be really successful.
The whole community must realize the importance of the tourist. They must all get on board with the idea of developing the community as a tourist attraction and must work together to make the community attractive and appealing.
Typically, an attractive and appealing community is recognized as such by possessing the following characteristics:
§ Clean
§ Well-maintained buildings
§ Well-maintained public places, such as sidewalks, streets and landscaping
§ Distinctive
§ Quality Architecture and Design
§ Strong sense of place
All of these things can be subjective. But, so are lots of other things. That’s what makes life interesting. Ask ten different people what their favorite movie is and you will likely get ten different answers. Some people are attracted to doll shows and craft fairs. Others are attracted to car shows, renaissance fairs, and/or fishing derbies. It’s pretty tough to be everything to everyone. As a matter of fact, the last time I was visiting the “happiest place on earth,” a guy on the hotel floor, above mine, jumped out the window and took a 14-floor swan dive. The guy was clearly unhappy. True story.
I can go on and on about how to figure out what you want to be, but that will have to wait. Right now I’m only addressing the basic need for attractiveness.
For a community to have a successful tourism program, it doesn’t need to transform the entire city. A single tourism area, or district, should be designated. We all know the easiest way to capture tourist spending is to get them out of their cars and onto their feet. So, this district should be pedestrian oriented, or what I like to call a “walk-around area”. It will allow travelers to stop and linger. Providing an infrastructure, which allows for good circulation is a good start. Walking areas, easily navigable streets and convenient parking are effective ways to convert visitors to customers.
(next: An Attractive/Appealing Community, continued)
Sunday, July 11, 2010
Tourism By Numbers Part III: The Tourism Infrastructure
Tourism Infrastructure is made up of places and things that are the components of accommodation. It may be something that the visitor does not notice or see, unless it is missing --the same things that attract industrial prospects, such as adequate utilities or good roads. Infrastructure is what visitors sense as they make the decision to stay or go. Or ever return. Security and hospitality are two critical infrastructure components that someone passing through a community must sense before he will consider conversion to tourist.
This infrastructure, just like any other infrastructure, is built from the bottom up. The more components that are in place, the more tourism it can support. In the following post, I'll attempt to explain the First of 15 Key Elements of a strong and successful tourism infrastructure.
This infrastructure, just like any other infrastructure, is built from the bottom up. The more components that are in place, the more tourism it can support. In the following post, I'll attempt to explain the First of 15 Key Elements of a strong and successful tourism infrastructure.
Saturday, July 10, 2010
Tourism By Numbers Part II: The Four Categories of Tourism
OK, I highly encourage you to read this carefully. This might be the most important chunk of information for any economic developer with the charge of developing a tourism strategy as part of their economic development plan.
Tourism dollars are long thought to roll into a community via people visiting the community from somewhere else. As I pointed out in my former post "Committing an Act of Tourism", people don't necessarily have to visit your community from hundreds of miles away to be considered tourists. They can travel a few miles into your town to enjoy a bluegrass concert or even see a movie. They're still dropping their money off and eventually leaving to go home. Right?
Well, what about the folks that live in your community? They take their cash and spend it in other communities too. That's a bleeding wound that certainly needs some attention.
Tourism can be broken down into four distinct categories, each one delivering a different level of tourism activity and economic impact. They are:
1. End Destination describes an event, community or attraction to which tourists travel, specifically, to experience and enjoy.
2. Intermediate Destination provides opportunities for the community to serve as an intermediate tourist destination.
Many people travel to various destinations and must travel through or near the community. By providing opportunities for them to spend disposable money in the community, the community becomes an intermediate tourist destination.
3. Immediate Destination tourism provides opportunities for neighboring residents (people who live within 50 miles outside of the community) to spend disposable money in the community.
4. Tourism Retention provides opportunities for local residents to spend disposable money in their own community.
When describing actual tourism destinations, it is important to realize that any one community or attraction can serve as all four categories. Take Las Vegas, for example. For many vacationers, Sin City is their End Destination. For others, it serves as an Intermediate Destination. It’s a one-night stopover on their way to Disneyland or the Grand Canyon. For others, Vegas is an Immediate Tourism destination. For the people from the nearby city of Henderson, the trip into “the city” can include lots of entertainment but, for them, will not require a hotel room. And finally, residents of Las Vegas are constantly tempted with special events and new attractions that will capture their hard-earned dollars. This is a trick performed by City of Las Vegas, and County of Clark, that prevents the tourism cash from flowing to other communities.
While you may not have any hotels, you can still capture those tourism dollars by figuring out a way to attract people from the surrounding area for a few hours. And you can certainly retain a few of the dollars from your own citizens itching to spend them out of town. You just need to give them some good options. Doesn't have to be fancy. Just worth staying home and checking it out.
Tourism dollars are long thought to roll into a community via people visiting the community from somewhere else. As I pointed out in my former post "Committing an Act of Tourism", people don't necessarily have to visit your community from hundreds of miles away to be considered tourists. They can travel a few miles into your town to enjoy a bluegrass concert or even see a movie. They're still dropping their money off and eventually leaving to go home. Right?
Well, what about the folks that live in your community? They take their cash and spend it in other communities too. That's a bleeding wound that certainly needs some attention.
Tourism can be broken down into four distinct categories, each one delivering a different level of tourism activity and economic impact. They are:
1. End Destination describes an event, community or attraction to which tourists travel, specifically, to experience and enjoy.
2. Intermediate Destination provides opportunities for the community to serve as an intermediate tourist destination.
Many people travel to various destinations and must travel through or near the community. By providing opportunities for them to spend disposable money in the community, the community becomes an intermediate tourist destination.
3. Immediate Destination tourism provides opportunities for neighboring residents (people who live within 50 miles outside of the community) to spend disposable money in the community.
4. Tourism Retention provides opportunities for local residents to spend disposable money in their own community.
When describing actual tourism destinations, it is important to realize that any one community or attraction can serve as all four categories. Take Las Vegas, for example. For many vacationers, Sin City is their End Destination. For others, it serves as an Intermediate Destination. It’s a one-night stopover on their way to Disneyland or the Grand Canyon. For others, Vegas is an Immediate Tourism destination. For the people from the nearby city of Henderson, the trip into “the city” can include lots of entertainment but, for them, will not require a hotel room. And finally, residents of Las Vegas are constantly tempted with special events and new attractions that will capture their hard-earned dollars. This is a trick performed by City of Las Vegas, and County of Clark, that prevents the tourism cash from flowing to other communities.
While you may not have any hotels, you can still capture those tourism dollars by figuring out a way to attract people from the surrounding area for a few hours. And you can certainly retain a few of the dollars from your own citizens itching to spend them out of town. You just need to give them some good options. Doesn't have to be fancy. Just worth staying home and checking it out.
Thursday, July 8, 2010
Tourism By Numbers Part I: Three Kinds of Attractions
So, what makes a good attraction? What will visitors want to see?
The ability for an area to serve as a tourism destination is always based on natural, cultural or invented circumstances. In most successful cases, it is based on a combination of two or more of these elements.
Natural attractions exist due to a geographic locale such as the community or area’s proximity to an ocean, lake or scenic mountain. Or, it may be based on a natural phenomenon such as a geyser or a flock of birds that migrate at a certain time every year. Or, it can simply be a wonderful combination of climate, landscape and natural wildlife.
Cultural Tourism can be defined as 'the movement of persons, away from their normal place of residence, with the intention to gather new information and experiences related to another country or region's background, specifically the lifestyle of the people in those geographical areas, the history of the peoples, their food, art, architecture, religion(s), beliefs, traditions, and other elements that helped shape their way of life. In urban areas, Cultural tourists are likely drawn to museums and theatres, while in rural areas tourists are more likely to discover the traditions of indigenous cultural communities (i.e. festivals, rituals), and their values and lifestyle.
Invented attractions are anything that was created by man, usually as a way to make money. Amusement parks, casinos, sports complexes and golf courses are good examples. Although most of these man-made attractions were, by no means, culturally correct at the time they were built, many have become part of the “culture” associated with the area where they are located. Can you imagine Paris without the Eiffel Tower? Chicago without Wrigley Field? Sydney without the Opera House? Over time, each of these attractions have become part of the landscape of their respective communities and, in exchange, the communities are recognized by the iconic image of the attractions.
It's entirely possible that you have a little of all three of these elements. And, I'm certain you have, at the very least, a local flavor that can be considered "culture". Figure out what it is.
If all else fails, invent something.
The ability for an area to serve as a tourism destination is always based on natural, cultural or invented circumstances. In most successful cases, it is based on a combination of two or more of these elements.
Natural attractions exist due to a geographic locale such as the community or area’s proximity to an ocean, lake or scenic mountain. Or, it may be based on a natural phenomenon such as a geyser or a flock of birds that migrate at a certain time every year. Or, it can simply be a wonderful combination of climate, landscape and natural wildlife.
Cultural Tourism can be defined as 'the movement of persons, away from their normal place of residence, with the intention to gather new information and experiences related to another country or region's background, specifically the lifestyle of the people in those geographical areas, the history of the peoples, their food, art, architecture, religion(s), beliefs, traditions, and other elements that helped shape their way of life. In urban areas, Cultural tourists are likely drawn to museums and theatres, while in rural areas tourists are more likely to discover the traditions of indigenous cultural communities (i.e. festivals, rituals), and their values and lifestyle.
Invented attractions are anything that was created by man, usually as a way to make money. Amusement parks, casinos, sports complexes and golf courses are good examples. Although most of these man-made attractions were, by no means, culturally correct at the time they were built, many have become part of the “culture” associated with the area where they are located. Can you imagine Paris without the Eiffel Tower? Chicago without Wrigley Field? Sydney without the Opera House? Over time, each of these attractions have become part of the landscape of their respective communities and, in exchange, the communities are recognized by the iconic image of the attractions.
It's entirely possible that you have a little of all three of these elements. And, I'm certain you have, at the very least, a local flavor that can be considered "culture". Figure out what it is.
If all else fails, invent something.
Wednesday, July 7, 2010
Tourist, Traveler, Visitor. Who Cares?
It might be important to point out that I commonly use the terms "tourism", "tourist(s)" "traveler(s)", and "visitor(s)" synonymously. From an Economic Developer's point of view, I honestly don't see a difference in value. A business traveler's money holds the same value as a leisure traveler's money. Last I checked, one hundred dollars spends the same no matter who gives it to you.
What's In It For Me?
The advancement of passenger rail travel in the early 1850s ushered in the true beginnings of what is recognized as modern “tourism”. Then with automobiles, in the 1920s, and air travel starting in the 1930's, tourism continued to advance exponentially. Today, worldwide tourism is a $200 billion per year industry! When standard economic multipliers are applied, this number is much higher.
In the United States, the average tourist spends roughly $88 per person, per day during a trip that includes an over night stay. This figure includes every man woman and child and includes every purchase made while traveling.
Increasing tourist expenditures will create an increased number of sales transactions in a given community. Not just the direct spending by the tourists, but the re-spending of those same funds too. Clearly, certain businesses will initially receiving the bulk of the tourist dollar. Hotels, motels, restaurants, retail stores, tourist attractions, gasoline stations and transportation companies are among the businesses where the tourist actually hands the money to the business operator. These transactions introduce “new money” into the community. Then, the money starts circulating and will end up getting spent three more times before it leaves the community.
Every time a customer pays for a meal at a restaurant, the restaurateur divides up the money. Part of it pays for goods needed to make more meals, part of it pays for rent, part of it pays for basic services such as electricity, phone, garbage, sewer and water, part of it pays for professional services such as accountants and insurance, and part of it helps pay the wages for his employees, who turn around and pay for gasoline, rent and groceries. The gas station owner collects money from the restaurant employees and pays wages to his own employees. This goes on and on until the money pays for out-of-town goods or services and leaves the community. It is a very healthy cycle.
The more often the dollar “changes hands” without leaving the community, the more economically beneficial it is to the community. Thus, the more goods and services provided for the traveler, the greater the economic benefit for the community. So, the longer the traveler stays in a community, the greater the impact.
Each round of new expenditure brings resources into use, creating new services and employment.
In addition to the regular sales tax that is generated from tourist spending, local, state and federal government will also benefit from use taxes, gas taxes, tobacco, liquor, and entertainment taxes. As a consumer, the tourist helps pay real estate, business, and income taxes since these are paid by the businesses from the customer-generated revenues.
In the United States, the average tourist spends roughly $88 per person, per day during a trip that includes an over night stay. This figure includes every man woman and child and includes every purchase made while traveling.
Increasing tourist expenditures will create an increased number of sales transactions in a given community. Not just the direct spending by the tourists, but the re-spending of those same funds too. Clearly, certain businesses will initially receiving the bulk of the tourist dollar. Hotels, motels, restaurants, retail stores, tourist attractions, gasoline stations and transportation companies are among the businesses where the tourist actually hands the money to the business operator. These transactions introduce “new money” into the community. Then, the money starts circulating and will end up getting spent three more times before it leaves the community.
Every time a customer pays for a meal at a restaurant, the restaurateur divides up the money. Part of it pays for goods needed to make more meals, part of it pays for rent, part of it pays for basic services such as electricity, phone, garbage, sewer and water, part of it pays for professional services such as accountants and insurance, and part of it helps pay the wages for his employees, who turn around and pay for gasoline, rent and groceries. The gas station owner collects money from the restaurant employees and pays wages to his own employees. This goes on and on until the money pays for out-of-town goods or services and leaves the community. It is a very healthy cycle.
The more often the dollar “changes hands” without leaving the community, the more economically beneficial it is to the community. Thus, the more goods and services provided for the traveler, the greater the economic benefit for the community. So, the longer the traveler stays in a community, the greater the impact.
Each round of new expenditure brings resources into use, creating new services and employment.
In addition to the regular sales tax that is generated from tourist spending, local, state and federal government will also benefit from use taxes, gas taxes, tobacco, liquor, and entertainment taxes. As a consumer, the tourist helps pay real estate, business, and income taxes since these are paid by the businesses from the customer-generated revenues.
Friday, July 2, 2010
Committing an Act of Tourism
So, how can you define tourism?
Many people believe that tourism is a service industry that takes care of visitors when they are away from home. Some restrict the definition of tourism by number of miles away from home, overnight stays in paid accommodations, or travel for the purpose of pleasure or leisure. Some people don’t think business travel is a form of tourism. Others think that travel and tourism should not even be referred to as an industry.
Many people believe that tourism is a service industry that takes care of visitors when they are away from home. Some restrict the definition of tourism by number of miles away from home, overnight stays in paid accommodations, or travel for the purpose of pleasure or leisure. Some people don’t think business travel is a form of tourism. Others think that travel and tourism should not even be referred to as an industry.
Whatever the official definition of tourism may be, from an economic development standpoint, it seems to boil down to one important factor: The ability for a community to capture disposable money from customers who have an option to spend it elsewhere.
So, based on this logic, would it be possible to say that if your favorite restaurant was located in the next town over, each time you went there to dine, you committed an act of tourism?
The answer is “maybe.”
If the trip was made in order to have a “unique experience” then the answer is “probably.”
If the trip was made because there were no dining opportunities in your home town, then the answer is “probably not.”
So, it’s safe to say that the line between tourism and plain old consumer spending is not fine. As a matter of fact, the line is pretty wide, and pretty fuzzy.
But, when tourism is recognized as an “export”, then it becomes a little easier to understand, recognize and accept.
The standard, basic and accepted definition of an export is any good or commodity, transported from one country to another country in a legitimate fashion, typically for use in trade. Export goods or services are provided to foreign consumers by domestic producers. However, it is widely accepted that an “export” can easily describe goods or commodities being traded across state lines or even local municipal lines.
The act of exporting goods and commodities, and the reason for doing it, is to open up the market, or customer base for the items being exported. It’s a way to make more money. Economic developers love exporters. Here are some businesses that create something and then ship it outside the area. The customers don’t even live in the community. Therefore, the local government does not have to worry about taking care of them. These customers don’t need new roads, schools, hospitals or more shopping centers.
So, Tourism should be viewed as an export industry. People travel to a community, make purchases, and leave.
Wednesday, June 30, 2010
Jesus, Mary and Joseph, It’s Tourism for Christ’s Sake!
The Biblical story found in Luke 2 describes that Caesar Augustus had issued a decree that a census should be taken of the entire Roman world. Everyone was required to go to their home town to register and pay a special tax.
“…So Joseph also went up from the town of Nazareth in Galilee to Judea, to Bethlehem the town of David… He went there to register with Mary, who was pledged to be married to him and was expecting a child.”[1]
When they arrived in Bethlehem, they found that because so many people were coming to pay their taxes, there was no room in the inns. At the last one they tried, the innkeeper offered them a stable to sleep in.
We all know this story as that of the birth of Jesus. It’s a sacred story written to inform its readers of the birth of Christ. But, it is also one of the earliest historic records of one of the purest forms of economic development: tourism.
The trip from Nazareth to Bethlehem is between 60 and 80 miles by foot - no easy trip in those days, especially with a very pregnant fiancé as a traveling companion. Clearly, it took the couple several days to complete their journey. Along they way, they undoubtedly spent their hard-earned money at various hotels and eating establishments.
The owners of the inns as well as restaurants and shops were doing a bang-up business. They were probably able to jack up their prices to the maximum amount possible at the time. The whole census thing was a huge deal for the small towns back then (circa 9 months B.C.) It would be the equivalent of a city-wide convention taking place in Las Vegas. And, like the procrastinating convention-goer of today, Joseph and Mary found that there was “no room at the inn.” However, the scripture describes that an enterprising innkeeper offered them the use of his stable. Don’t think for a minute that this was a “no charge” deal. The innkeeper was making money hand-over-fist on that evening. He knew he had a couple “live ones.” Heck, Joseph and Mary and baby Jesus were probably not even the only people staying in the barn. This was a smart innkeeper. He probably had several families staying there. And, he was probably able to sell the barn space above the inn’s regular rack rate.
My guess it that a Transient Occupancy Tax had not yet been thought up. Too bad for the local government. If it had, they would surely be high-fiving one another and planning to hold a census as an annual event.
Funny thing is, the story of the birth of Jesus does not represent the earliest days of tourism. The scripture makes reference to more than one Inn that was full. Bethlehem had enough regular tourism business to support more than one hotel. So, it is clear that this type of activity had been practiced for many years.
Tourism dates back to the earliest of prehistoric times and probably originated out of religious ceremonies and opportunities for central trading, or a combination of both. Regardless, tourism was not something that was invented by one person and passed on to others. Rather, it was an obvious opportunity of which people took advantage.
The basic concept of tourism probably began at the dawn of man. Consider this:
Millions of years ago the first humans left the security of their homes to hunt for food and to gather other goods that would make their existence more comfortable. Over time, these people traveled farther and farther, until finally meeting up with other people. Perhaps these other people hunted and collected different game and goods. The two groups sampled one another’s possessions and decided to make a few trades. They were all pleased and agreed to meet up again at a later date and at a specific location.
After many years passed, and many new relationships were established, word of these regular meetings spread. More and more people traveled to the meeting place, at the specific times, to trade goods.
Eventually, a few smart and enterprising folks decided that business was consistent enough that they could continue peddling their wares throughout the year at this central trading area. They remained at the location and greeted visitors from afar with a variety of goods. They were the first vendors and the area became the market.
In time, some of the vendors built shelters to offer the visitors from afar a place to rest. Others provided freshly cooked meals.
Word continued to spread and the market continued to grow in size and popularity. The area now had a commercial center. Dwellings that offered hospitality became inns and eating-places.
Tourism was born.
The model described has not changed over time. It is a simple model of tourism development. Add the production of the goods that the vendors offer for sale; then create a strategy for community development that includes local manufacturing; and the practice of economic development, as we know it today, becomes definitive.
[1] Luke 2:1-20 (New International Version)
“…So Joseph also went up from the town of Nazareth in Galilee to Judea, to Bethlehem the town of David… He went there to register with Mary, who was pledged to be married to him and was expecting a child.”[1]
When they arrived in Bethlehem, they found that because so many people were coming to pay their taxes, there was no room in the inns. At the last one they tried, the innkeeper offered them a stable to sleep in.
We all know this story as that of the birth of Jesus. It’s a sacred story written to inform its readers of the birth of Christ. But, it is also one of the earliest historic records of one of the purest forms of economic development: tourism.
The trip from Nazareth to Bethlehem is between 60 and 80 miles by foot - no easy trip in those days, especially with a very pregnant fiancé as a traveling companion. Clearly, it took the couple several days to complete their journey. Along they way, they undoubtedly spent their hard-earned money at various hotels and eating establishments.
The owners of the inns as well as restaurants and shops were doing a bang-up business. They were probably able to jack up their prices to the maximum amount possible at the time. The whole census thing was a huge deal for the small towns back then (circa 9 months B.C.) It would be the equivalent of a city-wide convention taking place in Las Vegas. And, like the procrastinating convention-goer of today, Joseph and Mary found that there was “no room at the inn.” However, the scripture describes that an enterprising innkeeper offered them the use of his stable. Don’t think for a minute that this was a “no charge” deal. The innkeeper was making money hand-over-fist on that evening. He knew he had a couple “live ones.” Heck, Joseph and Mary and baby Jesus were probably not even the only people staying in the barn. This was a smart innkeeper. He probably had several families staying there. And, he was probably able to sell the barn space above the inn’s regular rack rate.
My guess it that a Transient Occupancy Tax had not yet been thought up. Too bad for the local government. If it had, they would surely be high-fiving one another and planning to hold a census as an annual event.
Funny thing is, the story of the birth of Jesus does not represent the earliest days of tourism. The scripture makes reference to more than one Inn that was full. Bethlehem had enough regular tourism business to support more than one hotel. So, it is clear that this type of activity had been practiced for many years.
Tourism dates back to the earliest of prehistoric times and probably originated out of religious ceremonies and opportunities for central trading, or a combination of both. Regardless, tourism was not something that was invented by one person and passed on to others. Rather, it was an obvious opportunity of which people took advantage.
The basic concept of tourism probably began at the dawn of man. Consider this:
Millions of years ago the first humans left the security of their homes to hunt for food and to gather other goods that would make their existence more comfortable. Over time, these people traveled farther and farther, until finally meeting up with other people. Perhaps these other people hunted and collected different game and goods. The two groups sampled one another’s possessions and decided to make a few trades. They were all pleased and agreed to meet up again at a later date and at a specific location.
After many years passed, and many new relationships were established, word of these regular meetings spread. More and more people traveled to the meeting place, at the specific times, to trade goods.
Eventually, a few smart and enterprising folks decided that business was consistent enough that they could continue peddling their wares throughout the year at this central trading area. They remained at the location and greeted visitors from afar with a variety of goods. They were the first vendors and the area became the market.
In time, some of the vendors built shelters to offer the visitors from afar a place to rest. Others provided freshly cooked meals.
Word continued to spread and the market continued to grow in size and popularity. The area now had a commercial center. Dwellings that offered hospitality became inns and eating-places.
Tourism was born.
The model described has not changed over time. It is a simple model of tourism development. Add the production of the goods that the vendors offer for sale; then create a strategy for community development that includes local manufacturing; and the practice of economic development, as we know it today, becomes definitive.
[1] Luke 2:1-20 (New International Version)
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