20032007 Montana Tourism

1
2003-2007 MontanaTourism Recreation Strategic
Plan

• Presentation of Draft Key Elements
• February 5 6, 2002

The Hingston Roach Group, Inc.
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Acknowledgements

• THANK YOU!!
• Dept. of Commerce / Travel Montana Staff
• MTRI Agencies FWP, MDT, MHS, USFWS, USFS, BLM,
  COE, UM, MSU, MLCBC
• Montana Tribal Tourism Alliance
• UM Institute for Tourism Recn Research
• Regions CVBs/Chambers
• MIKA, MOGA, MWF, MWA, MCC, MRPA
• Wendt-Kochman, H2O Advertising
• Well continue to be in touch with you

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Agenda

• Planning Process Overview Status
• Proposed Strategic Elements
• Vision for 2007
• Guiding Principles
• Strategic Framework
• Markets Current Potential Customers
• Product Assets and Issues
• Proposed Goals to Achieve Vision
• Next Steps in the Planning Process

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Planning Process Overview

• Planning Element Oct Nov Dec Jan Feb Mar Apr May
• Meet w/ TM Team, TAC, MTRI ?
• 8 Public Meetings ? ?
• Information-Gathering ? ? ? ? ? ?
• Meet w/ MIKA, MOGA ? ?
• Draft Vision/Strat Frame/Goals ? ?
• Meet w/ TAC, MTRI Refine ?
• Add Draft Objects, Strategies ? ?
• Online Survey/Comments, Refine ? ?
• Present Draft Plan Feedback ?
• Refine Public Comment Period ? ?
• Complete Plan ?

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Perspective

• Whose Strategic Plan?
• Tourism Recreation partners (private, public,
  nonprofit sectors)
• Visitors resident and nonresident
• Current Task
• Lots of Information will present key highlights
• Big Picture Concepts review, clarify, discuss,
  tweak, endorse
• Reality Check for planning team are we on
  track?

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Proposed Vision for 2007By 2007, we seek to
achieve the following

• Respect. Tourism and recreation is recognized as
  an essential element of Montanas economy. It is
  appreciated by Montana citizens and elected
  officials for its financial and social
  contributions to the State (e.g., LC
  Bicentennial success lasting legacies,
  historic/cultural preservation, opportunities for
  businesses, increased visitation,
  public/private/tribal partners).
• Balance. Montanas rich natural, historic and
  cultural assets are managed for sustainable
  levels of visitation in a manner consistent with
  responsible, shared use. Communities that desire
  tourism are benefiting from new revenue and jobs,
  while retaining their community integrity and
  heritage. Montana is known for its diverse, high
  quality natural, historic and cultural tourism
  and recreation experiences, and the friendly
  professionalism of its people.

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Proposed Vision for 2007 (contd)

• Cooperation. Effective public-private-tribal
  partnerships are engaged in visionary,
  collaborative planning and implementation
  efforts which foster economic growth while
  respecting the values of Montanans.
• Support. Sufficient financing and technical
  assistance are available from various sources to
  support business development and tourism
  marketing. Funding is stabilized to develop and
  maintain infrastructure for tourism and
  recreation needs.
• Accountability. A comprehensive evaluation
  system is being used to measure the success and
  impacts of tourism/recreation development and
  marketing efforts, consistent with established
  goals. Resident and visitor research provides
  businesses and agencies the information they need
  to be market-driven and responsive to changing
  customer tastes and preferences.

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Proposed Guiding Principles

• Economic Social Benefit. Tourism/recreation is
  an industry operates under principles of supply,
  demand, competition. Social benefits enhance
  community, environment, quality of life. Must
  address each aspect effectively to maximize
  economic and social benefits for all Montanans.
• Quality Experience. Manage Montanas
  natural/cultural assets, facilities and services
  to ensure sustainability, high quality
  experience. Enhance and maintain infrastructure.
  Welcome and serve visitors professionally. Be
  true to heritage.
• Local Control. Local values guide
  decision-making about the types and quantities of
  visitors to maintain desired quality of life.
  Enhance decision-making with evaluation of
  realistic constraints and viable opportunities.
• Mutual Respect. Respect each others needs and
  concerns, public assets, communities, people,
  private property, reasonable public access,
  recreation preferences.
• Collaboration. Seek participation from all
  stakeholders during planning, budgeting,
  implementation of tourism/recreation projects.
  Use broad support to achieve higher funding
  levels.

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Proposed Strategic Framework

• Market-Driven
• Tourism recreation products/services respond to
  market demand
• Quality/success of products/services depends on
  business support, infrastructure, assets
  management
• Foundation for success planning, partnerships,
  support (funding, technical assistance)
• Assets natural, historical cultural assets

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Questions/Comments

• on Vision, Guiding Principles or Strategic
  Framework?

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Markets

• Nonresident Travelers
• State National Trends
• Implications

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Nonresident Markets
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Nonresident Travelers to MT
Source The Institute for Tourism and Recreation
Research (ITRR)

• Trip Purpose Summer 1997 Winter 2000
• Vacation/Recn/Pleasure 49 23
• Pass-Through 21 29
• Visiting Friends Relatives 16 32
• Business/Convention/Meeting 8 18
• Shopping/Medical 3 --
• Other 3 --
• Visited Yellowstone Natl Park 39 13
• Visited Glacier Natl Park 31 9
• Summer 2001 research data is not yet available.

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Nonresident Visitation Trends(Total Annual
Nonresident Visitors to Montana)
Source The Institute for Tourism and Recreation
Research (ITRR)
15
Lodging Sales Trends 1990-2000

• Overall growth was 85, inflation-adjusted was
  41
• Half of sales growth due to rate increases (based
  on CPI)

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Average Room Rate 1991-2001

• Overall growth was 44, inflation-adjusted was
  11
• Inflation-adjusted rate growth was 4.26 average
  room rate

17
Montana Skiing Trends
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Regional Trends

• Glacier Country
• Summer visitation down due to decline at
  GNP -24 (525,000) from 1992-2001
• National Bison Range down 19 1997-2001
• Heritage/culture travelers a growing/important
  segment
• Missoula trends (planning team investigating)??
• Russell Country
• Increase in historical/cultural segment as of
  total (esp. LC)
• Visitation at LC Interp Center down 19
  1998-2001
• Giant Springs State Park down last 5 years in a
  row
• River trips on wild scenic Missouri increasing

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Regional Trends

• Gold West Country
• Heritage/cultural travelers an important segment
  (Uptown Butte, MT Hist Society, LC, Summer
  Symphony)
• World Museum of Mining declined 2000-2001
• Big Hole Battlefield down 17 from 1994-2001
• Grant-Kohrs Ranch down 25 from 1993-2001
• Yellowstone Country
• Summer visitation down due to decline at YNP
• International visitor numbers down
• Seek more diversified winter recreation
  (uncertainty of snowmobiling)

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Regional Trends

• Missouri River Country
• Ft. Peck Lake visitation up 60 1992-2001
• CM Russell NWR up 54 1998-2001
• Ft. Union Trading Post down 27 1993-2001
• Custer Country
• Heritage/cultural travelers an important segment
• Billings hotel occupancies flat 1998-2001
• Pompeys Pillar visitation up
• VIC counts and inquiry trends are not indicative
  of actual visitation trends

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Montana State Park Visitation

• Overall visitation flat 1996-2000
• Resident visitation up, nonresident visitation
  down
• In 1988, was approx. 50-50 res/nonres
• In 2000, 72 resident, 28 nonresident
• Fishing Access Site visitation up 30 (1.1
  million) from 1996-2000

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Montana State Park VisitationCompared to Glacier
Yellowstone NP1995-2000
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MT Wildlife Refuge Visitation
Visitation up 44 from 1996-2001
Source USFWS
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Unanswered Questions

• If overall visitation up, but many key
  attractions down, where are visitors going?
• Fishing? Wildlife viewing?
• Business travel? Conventions?
• Visiting friends and relatives? Pass-through?
• Why declines at GNP and YNP?
• Canadian/European exchange rates?
• Publicity (road/trail closures, fires)?
• Stock market (retirement accounts)?
• Saturation (Been there, done that)?
• Changing market tastes/preferences?
• Lack of marketing?

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National Tourism Trends

• Mature Travelers (Empty Nesters, Boomers turn
  55)
• Over 50 80 of leisure travel, 75 of nations
  wealth
• Seek heritage, culture, education, soft
  adventure, amenities
• Family travel up
• Seek value, variety, kid/grandparent-friendly
• Heritage/cultural travel is largest segment
• More affluent, educated, seek learning/challenge
• 65 of U.S. travelers include heritage/culture on
  trip
• Seek authenticity, quality, integrity, amenities

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National Tourism Trends

• Rural tourism up small towns, rural festivals
• Combine business with cultural experience
• Shorter, more frequent trips, shorter planning
  time
• Women still do the family planning
• Safety, hygiene, creature comforts, shopping
• Seek One-Stop convenience packages
• Canadian visitation to US up 9 1998-2000
• Shopping is 1 activity overall

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National Retail Trends

• Glut of retail space nationally
• 1960 4 sq.ft. per capita
• 1990 19 sq.ft. per capita
• 2000 38 sq.ft. per capita
• Mall use declining (5,500 vacant malls)
• Downtown use growing (3.4 ? 4.4 trips/mo.)
• Gen Y and Empty Nesters prefer Downtown
• Downtown is back as Heart of Community
• Heritage/cultural travelers seek Downtowns
• Visitors not looking for Wal-Mart

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National Image of Montana

• Positive
• Vast unspoiled landscapes, mountains, water
• Fishing, hunting, hiking, camping
• Western culture Cowboys and Indians
• Negative
• Lacks sophistication, culture, arts
• Few high quality amenities
• Things to see, but not to do (entertainment)
• Not kid-friendly (activities designed for kids)
• Hard to access, difficult to purchase travel
• Montana Image Positioning Assessment, Dec.
  1999

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Markets So What??

• Vision
• Sustainable (managed) growth
• High-value, low-impact visitors
• Shoulder season growth
• Develop, package and promote product to meet
  emerging market needs in context of Montana
  values, sustainability
• Focus on nonresident markets that dont get in
  the face of Montana residents (less emphasis on
  fishing, hunting, camping)

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Markets So What??

• Focus on high-value visitors
• Historical/cultural sites activities
• Museums, art galleries
• Performance art (music, stage, etc.)
• Local artisans watch people work
• High-quality facilities and services
• Rustic is OK if clean with excellent service
• Convenience packaging
• Amenities shopping, dining, tours

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Tourism/RecreationProducts Services

• Key Products Services
• Access to Destinations
• Implications

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Types of Products Services

• Attractions
• Developed (Man-made)
• Natural (God-made)
• Activities
• Outdoor (Active Passive)
• Indoor (Active Passive)
• Events
• Spectator
• Participatory

33
Accommodations by Region
95 lodging properties have meeting/conference
facilities. 436 Ranch/Resort/Hot Sprg/Condo/Vac
Home/Cabin units not included.
34
Top Destinations
Yellowstone not included (approx. 2.8-3.0 million
visitors/year)
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Access to Destinations

• Transportation
• Highways and Rest Areas
• Air Service, Car Rental
• Rail
• Other Transit, Bike/Ped, Other
• Land Management
• Public vs. Private
• Information VICs, promo, web, etc.

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Transportation Issues

• Air service may decline without shoulder season
  growth
• Amtraks future is uncertain
• Car rental rates high due to 3-month season
• Tourism/recreation site impacts will necessitate
  alternate transportation modes
• Aging Boomers may increase demand for motorized
  access to public lands

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Land Management Issues

• Public
• Backcountry vs. Front Country
• Motorized vs. Non-motorized
• Restrictions, Allocations
• Wilderness, Roadless, Endangered Species,
  Sensitive Areas (Impact Issues), Game Animals
• Private
• Block Management
• Access to Public Lands Waters
• Wildlife (populations, management)

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Information Issues

• VICs locations, staffing, hours, seasons
• Promotion
• Bed tax spread thin, dilutes impact
• Uncoordinated private sector (packaging, co-op
  advertising, missed markets)
• Web resources need to be user-friendly
• Mixed messages (what is Montanas niche for
  conventions, skiing, culture, golf?)

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Connect the Dots

• Montana has diversified product
• Natural, cultural
• Urban, rural
• Active, passive
• Package products for niche segments
• Conventions and culture
• Museums and muse
• Dinosaurs and dining
• Skiing and symphony(or not)
• Cooperative efforts for planning, promotion

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Goals

• to achieve
• Vision for 2007

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Goals to Achieve Vision

• Enhance awareness/support for industry among
  citizens/elected officials, including development
  of additional/alternative funding sources.
• Increase year-round visitor spending in all
  regions through development/enhancement of
  products and services which attract higher value
  visitors and extend visitor length of stay.
• Nurture business growth and diversification
  through business support services and technical
  assistance.

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Goals to Achieve Vision (contd)

• Develop a more coordinated system to manage and
  protect natural and cultural assets with
  balanced, sustainable levels of visitor use.
• Enhance and maintain infrastructure to support
  high quality visitor experiences.
• Communicate with the market targeted and
  effective promotions to increase awareness and
  visitation measure, monitor, track and evaluate
  industry results and trends.

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Goal 1 Awareness/Support

• Continue public awareness/education
• Organized educational events (legislative tour)
• Invite-A-Friend campaign
• Economic impact research statewide, by
  region/activity
• Attitude/opinion research of Montana citizens
• Retain bed tax for tourism, educate re. use,
  amount, benefits, etc.
• Incentives that generate revenue (visitor
  passports, etc.)
• Industry cooperative/partnership funding
• User fees
• Sales tax

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Goal 2 Visitor Spending

• New/enhanced attractions, events and activities
• Shoulder seasons and indoor activities/facilities/
  venues
• Arts/culture, heritage
• Sports events
• Theme guided trips
• Packaging
• Conventions, meetings, corporate retreats
• Winter recreationists - cooperative promotions
• Guided hunting in targeted areas of Montana
• Shoulder season (e.g. ice) fishing in
  underutilized areas
• Public-private-tribal partnerships for
  implementation

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Goal 3 Business Growth

• Agri-tourism
• Technical assistance
• Workforce training, labor pool
• Superhost!, Teens in Tourism
• Financing
• Edu-structure
• Transportation
• Marketing
• Signage
• Regulations and licensing
• Entrepreneurial opportunities on public lands
• Partnerships

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Goal 4 Assets Management

• Historic/cultural needs evaluation, prioritized
  list
• Policies/programs to protect cultural sites and
  resources
• Development/showcasing of arts visual, folk,
  performing
• Funding/implementation of scenic/historic byways
  program
• Process to determine carrying capacity of
  high-use areas
• Citizen/visitor/legislator opinions about sites,
  build partnerships
• System of allocated use for areas/times at
  carrying capacity
• Types of facilities in high-impact areas, reqts
  for visitor use
• Licensing system for guided recreation services,
  needs
• Management policies re. interface between
  wildlife and industry
• Discussion of reasonable access to public lands
  and waters
• Motorized vs. non-motorized recreation user
  conflicts
• Coordination b/ agencies to avoid policy
  conflicts, simplify regs
• Wilderness study and roadless areas
• Invasive species problems
• Land management agency planning documents/public
  input

47
MT Hunting Licenses 1990-2000Resident vs.
Nonresident
Resident ? 14, Nonresident ? 10 Residents
outnumber nonresidents more than 2-to-1.
48
MT Fishing Licenses 1990-2000Resident vs.
Nonresident
Resident ? 15, Nonresident ? 40 Nonresidents
outnumber residents by 100,000
49
States of OriginGuided vs. Non-Guided Hunters
1,600/trip non-guided hunter economic
impact 3,800/trip guided hunter impact (200
million total impact)
50
Motorized Recn Vehicles 1990-2000
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Goal 5 Enhance Infrastructure

• Transportation roads, air, rail, transit,
  bike/ped, other
• Parks and recreation facilities
• Signs directional, interpretive, promotional
• Visitor Information Centers and rest areas
• Main Street (downtowns)
• City/county services
• Historic facilities/sites
• Backlog of maintenance on public facilities

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Goal 6 Communicate, Evaluate

• Shoulder season
• Heritage cultural, incl. scenic byways
• Meeting convention
• International Canada, Europe
• Internet
• Film industry
• Group/motorcoach
• Media relations
• Summer VFR, repeat/referral, database
• Signs directional, interpretive, promotional
• VICs
• Partnerships
• Visitor research resident, nonresident, by
  region/season/activity
• Dept. of Revenue timely tracking/reporting
• Conversion research non-visitors, converted vs.
  non-converted visitors
• Industry tracking/reporting hotel,
  campground/RV, ski, golf, outfitters

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Next Steps in Planning Process

• Input on Draft Vision, Guiding Principles,
  Strategic Framework and Goals
• Refine
• Draft Objectives, Strategies, Actions
• Timeline, Responsibility, Budget estim.,
  Resources
• Proposed Online Survey Prioritization
• Draft Plan Governors Conference
• April 18-19, 2002, West Yellowstone

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Discussion, Questions?Thank You!

• The Hingston Roach Group 208.983.2175
• Lorraine Roach lroach_at_thrgroup.com
• Ruth Mohr rmohr_at_thrgroup.com
• Premier Planning 406.442.4141
• Gail Brockbank gailb_at_mt.net