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Q&A About Businesses and Services
Getting Support from the Business Sector
Clare Gunn
Those who stand to benefit the most, economically and socially, will be the most dependable business allies in building tourism. These groups should openly discuss what is known about the economic and social impact of serving visitors in the community and identify information gaps. They also need to discuss the specific impacts of tourism on hospitality and other businesses, employment, and on the tax base. An inventory of public/private for-profit and nonprofit developments and resources should be included in the discussion. They should assess the level of acceptance and the level of service preferred by businesses and residents in hosting visitors. They also need to look at the current visitor industry and create a vision of the future. A strategic tourism planning event should be sponsored by these groups. Facilitators should be non-controversial but well known and respected by the community. Such an event can lead to the establishment of a new tourism committee, with authority to carry out the strategic plan, or may simply add new, enthusiastic participants to existing groups. In the end, those who stand to benefit the most, economically and socially, will be the most dependable business allies in building tourism. The best advice is to give them good information and challenge them to contribute. Larry Simonson, Consultant
One of the greatest pitfalls of working with business owners in a tourism program is unrealistically high expectations of income. The tourism group should conduct an inventory and assessment of businesses in the community so they know what kinds of businesses already exist to serve the visitor, what kinds can be adapted to visitor needs, and what kinds are missing. The extension service in Pennsylvania provides education and information to existing business groups. In some instances, the business group has become the tourism planning group. For example, several owners of bed and breakfasts in northwestern Pennsylvania approached an extension agent for assistance in forming an organization so they could do cooperative marketing. The agent used many of the techniques and strategies in the Minnesota rural development model to help the group work through the inventories and assessments to determine the strengths and weaknesses of the region in serving visitors. The organization has developed into a group that not only markets its own services, but also has created a network of supporting businesses such as antique shops, art and craft galleries, and specialty restaurants. The organization now has about 35 members and is affiliated with the Chambers of Commerce. One of the greatest pitfalls of working with business owners in a tourism program is unrealistically high expectations of income. There is a need to offer sound statistics and research results to all segments of the community tourism organization.
The selling of tourism is thus a multifaceted activity. To promote your community successfully will often involve cooperative effort among various commercial and government bodies. Unfortunately, many Chambers are not accustomed to being associated with park managers because their traditional focus has been on strengthening the business community. On the other hand, most park managers are ill-equipped and ill-at-ease dealing with tourism business because their traditional focus has been protection rather than promotion. Nevertheless, many rural alliances have been formed in which the creation of parks is seen as a means of economic development. Within a tourism marketing context, protecting, enhancing, and promoting the community's attraction base is a means of ensuring future success in a tourism development strategy.
Improving the Visitor Experience
A lists of all shops, restaurants, businesses, and services should be compiled and organized on a map or in a directory that is easy to use. Improving the visitor experience should start with an assessment of what you can offer. A list of all shops, restaurants, businesses, and services should be compiled and organized on a map or in a directory that is easy to use. This should be done with local residents. Children can point out their favorite things to see and do. Their suggestions can help you promote the downtown to younger visitors. To gain objectivity, bring in someone from the outside. Objectivity can help you pinpoint strengths and weaknesses and assess such community development components as product/business mix and the ease of following directional signage. Such a person might suggest that empty storefronts be cleaned up and serve as a gallery for student art or photo displays of the town's history. Not only does it share more of the community and its citizens with the visitor, but it provides a continuum along a street that would otherwise appear abandoned. The entrances could be delineated by signage. Because not all tourists will start their visit at select entrances, all retail and service outlets should provide maps and community information. If visitors feel safe and welcome in a community, the word of mouth will insure not only repeat business, but a broadened customer base. René Campbell
American Hotel and Motel Association National Restaurant Association University extension services and local technical colleges State tourism departments Bill Ryan Choosing the Right Businesses
In deciding which kind of business is best suited for an area you should look at what the users want and need and where it is most appropriate to provide those products, services, and facilities. In deciding which kind of business is best suited for an area you should look at what the users want and need and where it is most appropriate to provide those products, services, and facilities. The appropriateness of the location depends on many factors including customer demand, economic feasibility and profitability, and on the sense of place. For example, a souvenir and novelty shop selling nonlocal products would be better located in a larger tourism-oriented service town than in a smaller wilderness-oriented service town. On the other hand, an arts and crafts store featuring local themes, natural materials, and quality products (for example, water-color landscape paintings) may be appropriate in either location. It will depend upon whether or not the demand is adequate and the price and sales volume sufficient to produce an economically viable enterprise. Businesses should be located where they support and complement the local sense of place and plan. Chad Dawson
In a more wildland area businesses that depend on the wildlands would be appropriate. Outfitting businesses, fishing and hunting shops, restaurants, transportation services, convenience stores, campgrounds, and lodges would all be good choices because they serve the customer using the wildland. Some lodging businesses might offer rustic facilities while others could have modern and convenience-oriented facilities. In areas where there are large blocks of private land, there are other opportunities for businesses. These include private wilderness clubs, camping or outdoor clubs, second home areas, nature centers and educational facilities, organizational camps, equestrian facilities, and private hunting and fishing ranches. While there are many business possibilities in wildland areas, most will be related directly to the land and what one can do on it. To be most effective, they should be developed in a manner consistent with the environment since it is the environment that is the real attraction. Perry Brown
Local planners and business leaders concerned about guiding tourism development in their community can take the lead by defining the shape of tourism they believe will be successful and appropriate and actively seek out businesses to move into the area. Zoning and lease and deed restrictions directly control the nature of businesses allowed to operate and influence their physical appearance through architectural guidelines or regulations. However, a more positive solution that has worked in several Canadian communities has been for local community leaders to actively recruit selected types of tourism businesses. This strategy requires that the community have a vision of the type of tourism product it wants to offer and an idea about how it wishes to position itself in the market. Building on a Town's Heritage: An Example Taking an Active Approach Stephen Smith Entertainment Businesses
Realize that the businesses you are seeking will not locate in your town until the demand is present. Through frequent incremental growth an existing business can expand into a new area. Eventually the offshoot business, if successful, will grow to the point that a family member of the owner will take over the business, or the new business will be sold to a separate party. Additional activities for evening, could be quasi-public activities. Libraries, tours, plays, and community concerts can also provide evening entertainment. Tommy Brown A new restaurant should be developed only after careful analysis including the town's growth and future markets, competition, and potential menu interests of current residents. If adding another restaurant to a small town is not the answer, you need to improve the current restaurants' food quality and service. A restaurant manager may have a limited background and perhaps no formal education in food service. The service staff are often part-time, may be very young, and probably lack training. Restaurant guests in small towns often don't voice concerns or desires to the managers because they don't want to be identified as complainers. They simply grin and bear it. Specific items you can do to help change the quality and service of a restaurant are as follows:
Ken Myers Lodging Enterprises
Those businesses that would benefit most directly from additional overnight accommodations should be willing to under-write or subsidize the additional development. Look at the occupancy levels of existing overnight facilities. If these, overall, are less than 50 percent, do not expect the market system to respond. However, there may be businesses and attractions in the community who feel that their potential is seriously handicapped because of insufficient overnight accommodations. Those businesses that would benefit most directly from additional overnight accommodations should collectively be willing to be the principles in underwriting or subsidizing the additional development. Consider how this will affect the economic viability of existing accommodation enterprises that are probably operating at the margin. Alternatively, concentrating on a market segment that does not require overnight accommodations might be a more viable solution. Jim Stribling
The primary concern of lodging developers and investors is whether or not a new property in your community will generate an acceptable return on their investment. Lodging Chains Hotel industry accounting and consulting firms. Owners and operators of other lodging facilities. National conferences on hotel development provide opportunities to meet lodging investors and developers. National and regional conferences are conducted by universities such as UCLA-Extension and Georgia State University and by major hospitality industry accounting firms. The primary concern of lodging developers and investors is whether or not a new property in your community will generate an acceptable return on their investment. Be sure to understand their concerns and work with them to analyze market potential and feasibility issues. They will want this information in order to make such an analysis:
Companies will use this information to prepare projections of occupancy and cash flow that will indicate whether a new lodging venture is feasible. By working with lodging developers and investors, you can be instrumental in attracting a new, appropriate property to your community. Bill Ryan Return to Main Document |
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Tourism Center
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Tourism Center · University
of Minnesota Extension · College of Food, Agricultural and Natural
Resource Sciences · University
of Minnesota Twin Cities Campus |
