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Developing Rural Tourism Businesses

Developing Rural Tourism Businesses. Kathy Tweeten North Dakota State University ktweeten@ndsuext.nodak.edu (701) 328-9718. Alan Barefield Southern Rural Development Center alanb@srdc.msstate.edu (662) 325-3207. What is tourism?.

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Developing Rural Tourism Businesses

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  1. Developing Rural Tourism Businesses Kathy Tweeten North Dakota State University ktweeten@ndsuext.nodak.edu (701) 328-9718 Alan Barefield Southern Rural Development Center alanb@srdc.msstate.edu (662) 325-3207

  2. 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

  3. What isRural Tourism?

  4. Rural Tourism Opportunities • Hunting Services (Leasing & Guiding)

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

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

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

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

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

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

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

  12. 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

  13. 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

  14. 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!

  15. 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

  16. 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

  17. 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

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

  19. 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

  20. 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?

  21. 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?

  22. SweetwaterValley Farm

  23. Smoky Mountain Ham

  24. Fee Fishing& Guide Services

  25. Bird Watching

  26. Retention and Expansion of Agri-tourism Businesses

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

  28. 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!!!!

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

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

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

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

  33. Do You Know What This Is?

  34. Nesson Valley Gardens to ……

  35. ….Thunderbird Ranch Gourmet Foods

  36. Key to Success Plan with the end in mind.

  37. 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

  38. Questions?

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