1. Developing Rural Tourism Businesses Alan Barefield Southern Rural Development Center alanb@srdc.msstate.edu (662) 325-3207 Kathy Tweeten North Dakota State University ktweeten@ndsuext.nodak.edu (701) 328-9718

2. 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

3. What is Rural Tourism?

4. Rural Tourism Opportunities Hunting Services (Leasing & Guiding)

5. Rural Tourism Opportunities Hunting Services (Leasing & Guiding) Fee Fishing & Guide Services

6. Rural Tourism Opportunities Hunting Services (Leasing & Guiding) Fee Fishing & Guide Services Cabin Rentals

7. Rural Tourism Opportunities Hunting Services (Leasing & Guiding) Fee Fishing & Guide Services Cabin Rentals Bed & Breakfasts

8. Rural Tourism Opportunities Hunting Services (Leasing & Guiding) Fee Fishing & Guide Services Cabin Rentals Bed & Breakfasts Horseback Riding

9. Rural Tourism Opportunities Hunting Services (Leasing & Guiding) Fee Fishing & Guide Services Cabin Rentals Bed & Breakfasts Horseback Riding Kayaking, Rafting, & Tubing

10. Rural Tourism Opportunities Hunting Services (Leasing & Guiding) Fee Fishing & Guide Services Cabin Rentals Bed & Breakfasts Horseback Riding Kayaking, Rafting, & Tubing Off-road Biking

11. Rural Tourism Opportunities Hunting Services (Leasing & Guiding) Fee Fishing & Guide Services Cabin Rentals Bed & Breakfasts Horseback Riding Kayaking, Rafting, & Tubing Off-road Biking Festivals

12. 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

13. 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

14. Problem Areas To 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!

15. Problem Areas To 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

16. Problem Areas To 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

17. Problem Areas To Address Lack of customer identification –Your market is probably not the world –What is the target group? Families Singles Seniors Youth Men Women

18. Marketing Considerations Determine the set of attractions that will make tourists stop or preferably stay in your area

19. 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

20. 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?

21. 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? StrengthsWeaknesses OpportunitiesThreats –How is your business different from the competitors? –How is it better?

22. Sweetwater Valley Farm

23. Smoky Mountain Ham

24. Fee Fishing & Guide Services

25. Bird Watching

26. Retention and Expansion of Agri-tourism Businesses

27. opportunityisnowhere Attitude Assess resources –Human –Financial –Natural Visit a like business Study the market Determine the feasibility

28. 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!!!!

29. Customer Profile Millenial 8% Generation X 22% Baby Boom 39% Swing & WWII (Matures) Boomers -independent spend more money travel further

30. Trends Novelty and change Simplify life Group tours decreasing Family vacations Educational travel Remote areas Home state travel

31. Trends Con’t. Exercise and outdoor activity Back to nature Wildlife-related Create memories

32. Fastest Growing Land-Based Bird watching Hiking Backpacking Primitive Camping Walking Snowmobiling (fastest growing)

37. Do You Know What This Is?

38. Nesson Valley Gardens to ……

39. ….Thunderbird Ranch Gourmet Foods

43. Key to Success Plan with the end in mind.

44. 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