Developing Rural Tourism Businesses Alan Barefield Southern Rural Development Center (662) Kathy Tweeten North Dakota State University (701)

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

What is Rural Tourism?

Rural Tourism Opportunities Hunting Services (Leasing & Guiding)

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

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

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

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

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

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

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

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

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

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!

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

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

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

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

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

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?

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?

Sweetwater Valley Farm

Smoky Mountain Ham

Fee Fishing & Guide Services

Bird Watching

Retention and Expansion of Agri-tourism Businesses

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

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!!!!

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

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

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

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

Do You Know What This Is?

Nesson Valley Gardens to ……

….Thunderbird Ranch Gourmet Foods

Key to Success Plan with the end in mind.

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