Developing Rural Tourism Businesses

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Developing Rural Tourism Businesses

• Alan Barefield
• Southern Rural Development Center
• alanb_at_srdc.msstate.edu
• [phone]

Kathy Tweeten North Dakota State
University ktweeten_at_ndsuext.nodak.edu (701)
328-9718
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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. Websters Dictionary
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What isRural Tourism?
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Rural Tourism Opportunities

• Hunting Services (Leasing Guiding)

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Rural Tourism Opportunities

• Hunting Services (Leasing Guiding)
• Fee Fishing Guide Services

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Rural Tourism Opportunities

• Hunting Services (Leasing Guiding)
• Fee Fishing Guide Services
• Cabin Rentals

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Rural Tourism Opportunities

• Hunting Services (Leasing Guiding)
• Fee Fishing Guide Services
• Cabin Rentals
• Bed Breakfasts

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Rural Tourism Opportunities

• Hunting Services (Leasing Guiding)
• Fee Fishing Guide Services
• Cabin Rentals
• Bed Breakfasts
• Horseback Riding

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Rural Tourism Opportunities

• Hunting Services (Leasing Guiding)
• Fee Fishing Guide Services
• Cabin Rentals
• Bed Breakfasts
• Horseback Riding
• Kayaking, Rafting, Tubing

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Rural Tourism Opportunities

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

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Rural Tourism Opportunities

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

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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

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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

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Problem AreasTo 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!

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Problem AreasTo 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

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Problem AreasTo 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

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Problem AreasTo Address

• Lack of customer identification
• Your market is probably not the world
• What is the target group?
• Families
• Singles
• Seniors
• Youth
• Men
• Women

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Marketing Considerations

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

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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

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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?

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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?
• Strengths Weaknesses
• Opportunities Threats
• How is your business different from the
  competitors?
• How is it better?

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SweetwaterValley Farm
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Smoky Mountain Ham
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Fee Fishing Guide Services
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Bird Watching
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Retention and Expansion of Agri-tourism
Businesses
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opportunityisnowhere

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

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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!!!!

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Customer Profile

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

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Trends

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

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Trends Cont.

• Exercise and outdoor activity
• Back to nature
• Wildlife-related
• Create memories

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Fastest Growing Land-Based

• Bird watching
• Hiking
• Backpacking
• Primitive Camping
• Walking
• Snowmobiling (fastest growing)

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Do You Know What This Is?
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Nesson Valley Gardens to
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.Thunderbird Ranch Gourmet Foods
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Key to Success

• Plan with the end in mind.

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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 BRE Visitation Survey

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Questions?