Adventure Market Overview Area Attractions Luncheon May 22, 2014 Julie Thorner

3 Comprehend the importance and opportunities presented by following best practices when operating in sensitive wilderness and cultural environments Recognize key adventure traveler demographic profiles and preferences 2 Understand the value of the global adventure market 1 WHAT WE’LL COVER 4 Understand the size & economic impact of the local rafting industry, Pigeon & Ocoee Rivers

SECTION INDUSTRY TRENDS 1 IN THIS SECTION Global market value and growth projections Information on adventure travelers: demographic and psychographic profiles Adventure traveler preferences for activities, community engagement

DEFINITION OF ADVENTURE TRAVEL

THE ADVENTURE TRAVELER PROFILE DATA PRESENTED IN THE FOLLOWING SLIDES WAS DERIVED FROM ORIGINAL SURVEY RESEARCH. In 2013 the George Washington University and the ATTA collaborated to conduct a global survey of adventure travelers. An internationally known behavioral panel provider was used to survey a representative sample of international travelers aged 18 years old or older, who have traveled outside the country in their home country in the recent past. The surveys were translated into the native language of the participant’s home country. Respondents came from North America, Europe and South America. 1,739 surveys were collected of which 845 valid surveys were extracted. Seven responses were discarded due their outlier status. The final sample size is 838, yielding a combined margin of error of 3.4%. Regional sample sizes are as follows: RESEARCH METHOD North America Respondents – 213 Europe Respondents South America Respondents – 202

ADVENTURE TRAVEL COMPARED TO MAINSTREAM TOURISM 1950s 2000s Mass Tourism; 4% average growth per year Adventure Tourism: 17% growth in 2009 and % penetration 2050 ? ? Time Growth Adventure Tourism: 65% growth in 2011 and % penetration Adventure travel is the fastest growing segment of the tourism industry. [ ]

ADVENTURE TRAVELER DEMOGRAPHICS 40.6% of travelers worldwide can be classified as adventure travelers Archeological expedition Backpacking Birdwatching Camping Canoeing Caving Climbing Cycling Ecotourism Environmentally sustainable activities Fishing/fly fishing Heli-skiing Hiking Horseback riding Hunting Kayaking/sea/whitewater Kite surfing Motorized sports Orienteering Paragliding Rafting Research expeditions Safaris Sand boarding Sailing Scuba diving Snorkeling Skiing/snowboarding Standup paddle boarding Surfing Trekking Volunteer tourism Survey respondents were classified as “adventure travelers” if they cited one of the following activities as the “main” activity on their most recent trip. []

The table below provides further detail on the age breakdown of people within the 46.6% of all travelers classified as adventure travelers. [ ] ADVENTURE TRAVELER AGE SEGMENTATION The majority of adventurer travelers are 31 – 50 years old

ADVENTURE TRAVELER TRIP PLANNING BEHAVIOR For all age groups, online search is the most popular method with all age groups. Surprisingly, “friends” were not cited as a top source of trip planning information for people age 28 – 40. [ ] Age RangeFriends(*)OnlineNewspaperTravel TVDMO Book Air+Hotel Online Use Guide DID NOT PREPARE Less than 28 56%67%22% 11%33%11%22% %77%36%32%23%41%36%23% % 19%23%11%19%23%12% %67%20%34%12%39%27%12% More than 60 70% 30%27%13%37%25%12% How else did you prepare for the last trip?

Note: Sample size for age GenY and GenX age segments was small, therefore results are indicators of trends but not conclusive. Volunteering is popular with almost every age group; backpacking and camping are popular with people age 28 – 60. [] ADVENTURE TRAVELER ACTIVITIES OF INTEREST

GenX and Boomers travel with family, while GenY and Boomers 60+ travel in pairs [ ] ADVENTURE TRAVELER TRAVEL STYLE

The following slides provide basic information on the need to adhere to best practices when leading adventure trips and the benefits that observing best practices can bring to a destination. SECTION THE IMPORTANCE OF BEST PRACTICES 2

Sustainable Development Policies Infrastructure Humanitarian Entrepreneurship Adventure Activity Resources Health Cultural Resources Safety Image & Marketing Natural Resources The ATDI describes 10 factors necessary for adventure market development; adherence to best practices is especially important in the areas of Safety, Natural, Cultural, and Adventure Activity Resources [] ADVENTURE TOURISM DEVELOPMENT INDEX FRAMEWORK

Adventure travelers and companies can influence the protection of land, culture and biodiversity - the base assets upon which adventure tourism is built TYPES OF BEST PRACTICES EVERY ADVENTURE BUSINESS MUST CONSIDER BEST PRACTICES TO SUSTAIN NATURE, CULTURE AND ADVENTURE RESOURCES []

Total Guest Rafting Numbers for Top US Rivers Pigeon River Historical Growth Ocoee River Economic Impact Study Statistics provided by America Outdoors Association SECTION LOOK AT LOCAL RAFTING INDUSTRY IMPACTS 3

Rafting Guest Numbers Since 2009 Source: America Outdoors Association

The Pigeon River: Consistent Growth Far Surpassing All Other Top Rivers Source: America Outdoors Association

The Pigeon River: Explosive Rafting Growth at 750% Since 1995 Source: America Outdoors Association

Let’s Extrapolate: Using the Recent Ocoee River TN Impact Study Source: America Outdoors Association

Total Measured Economic Impacts of Ocoee Rafting Source: America Outdoors Association

Leveraging Local Adventure Tourism Natural Assets to Market this Region Great Smoky Mountains National Park: over 12-13MM visitors/year, the most visited park in the entire US NP system. Within a day’s drive of most of the East Coast Whitewater Rafting: Pigeon, Ocoee, Nolichucky TN; French Broad, Nantahala, Tuckasegee NC; Chattooga, Hiawasee GA Mountain Biking & Hiking trails Camping: backcountry (USFS, NP), campgrounds as base for day trips Adventure Courses, set in natural locations, Ziplining, Ropes Challenge Courses, Adventure Aerial Parks The combination of outstanding adventure tourism natural assets, a world renowned National Park, developed entry level adventure product, and exceptional shopping and theme park attractions next door is hard to beat for the vacationing public! Only the Southeast has this…

Try out a local adventure trip/product soon! Questions/Ideas: Julie Thorner President, Liquid Spark Inc. PO Box Bryson City, NC www. LiquidSparkMarketing.com O: / M: