Commercial Recreation

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Commercial Recreation
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Why are recreation businesses important to
tourism?

• Provide services facilities that government can
  not provide.
• Add diversity to the tourism experience.
• Add local character to tourism.
• Extend economic impacts of tourism into local
  communities.
• May become primary or secondary destinations.

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Types of commercial recreation businesses

• Sole proprietorship
• Partnership
• General partnership
• Limited liability partnerships (LLP)
• Corporations

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Sole proprietorship

• Single owner
• Owner has control over all assets.
• Owner makes all decisions.
• Owner assumes all risk.

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General partnership

• Two or more owners
• Assets generally split between owners.
• Owners share decision-making.
• All owners assume risk.

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Limited liability partnerships (LLP)

• Limited Liability Partnership Certificate (DOS)
• One owner has decision-making ability and assumes
  most of the risk.
• Partners assume risk only up to the amount they
  invest in the business.

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Corporation

• An incorporated business managed by a board of
  directors.
• Assets owned by investors or stock owners.
• Corporation (not individual investors) assumes
  all risk.

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Examples of commercial recreation businesses

• Campgrounds
• Charter boats
• Guide services
• Rec. equipment rental services
• Accommodations
• Downhill skiing areas
• Concessionaires
• Agritourism businesses

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Success rate of businesses

• Business types First year Fifth year
• Vegetable crop production 93 69
• Travel agencies 88 55
• Restaurants/snack bars 79 40
• Home-based workers 83 49

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Factors affecting commercial recreation businesses

• Negligence
• The failure to implement reasonable precautions.
• Liability
• Being responsible for a negligent act.

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Factors affecting commercial recreation businesses

• Insurance
• General business
• Liability
• Private home owner
• Special rider
• Umbrella

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Factors affecting commercial recreation businesses

• Access for people with disabilities
• Americans with Disabilities Act of 1990 (ADA)
• Set requirements standards for new public
  construction
• Readily achievable removal of barriers in
  existing public facilities
• Applies to all disabilities mobility, visual,
  hearing, cognitive

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ADA Priorities

• 1 - Accessible entrance
• 1 accessible parking space per 25 spaces
• Ramp slope 1 rise 12 length
• Door width of 32 minimum
• 2 - Access to goods services
• 3 - Rest rooms
• 4 - Any other measures necessary

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Factors affecting commercial recreation businesses

• Marketing and promotion
• Business owner may not understand how to
  market/promote business
• Marketing data may be difficult to obtain
• Collection evaluation of business data is
  costly and time consuming

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Factors affecting commercial recreation businesses

• Privacy
• Security

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Factors affecting commercial recreation businesses

• Competition
• NAFTA
• Local competitors

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Factors affecting commercial recreation businesses

• Regulations and permits
• DBA (Doing Business As) form (County Clerk)
• Licenses
• Business certificates (DOS)
• Health code (DOH)
• Fire safety code (DOS)
• Zoning (local)

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Factors affecting commercial recreation businesses

• Tax identification number (IRS)
• Taxes
• Federal income
• State income
• City income
• Excise
• Self-employment (similar to social security)
• Sales (some products, admissions, accommodations)
• Lodging (Bed)

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How can businesses link to tourism?

• Promotional efforts
• County/State guidebooks
• Motorcoach tours
• Packaging with other businesses attractions
• Promoting through chambers trade associations
• Promote local tourism opportunities at business
• Planning efforts
• County/Regional tourism planning committees
• Town boards

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Agritourism

• Tourism that promotes farm-based attractions and
  resources to visitors for recreational purposes.

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Alasa Farms, Alton, NY
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Old MacDonalds Farm, Sackets Harbor, NY
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Corn maze
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Clausen Farms, Sharon Springs, NY
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1999 NYS Agritourism Study

• Business owner survey
• 2000 surveys
• Customer survey
• 6 businesses
• 299 surveys

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Percent of respondents by business type
n645
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Percent of respondents by NYS tourism region
5.6
7.9
9.8
9.9
27.0
9.6
6.5
7.3
11.3
5.0
lt0.1
n645
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Estimated income profit

• Total estimated gross income
• 210.87 million
• Total estimated net profit
• (income expenses profit)
• 25.77 million
• Average estimated net profit per business
• 12,347

n399
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Cost-effective Advertising
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Where do customers come from?
n569
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Age of visitors

• Children 11
• Teens 7
• 20-39 years 28
• 40-54 years 31
• 55 23

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Other visitor demographics

• Group size 2-4 people
• Length of stay Day trips (79)
• Gender Females (57)
• Males (43)

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Top 5 other activities customers participate in

• Visiting parks
• Attending festivals
• Camping
• Visiting historic sites
• Fishing

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What do customers look for?
n267
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Top 5 activities customers would like to
participate in
n267
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Conclusions

• The focus of all commercial recreation businesses
  should be the EXPERIENCE!
• To be successful...
• businesses must develop a UNIQUE identity.
• businesses must maintain a QUALITY experience.
• businesses must work together with TPAs.

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Questions?