USINESS ! OURISM EANS H OW T OURISM AND E CONOMIC D EVELOPMENT G O - - PowerPoint PPT Presentation

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OURISM SM MEA EANS NS BUS USINESS!

HOW TOURISM AND ECONOMIC DEVELOPMENT GO HAND-IN- HAND

Rob Hunden, CEO Hunden Strategic Partners

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Overview

§ Backgrounder § The Challenge for DMO’s: Communicating Your Value Proposition § Small Pieces § Medium Sized Places § Large Places § Call to Action: So Now What? § Questions

Backgrounder

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Hunden Partners - Areas of Expertise

Master Placemaking

Physical Programming Market Feasibility Financial Feasibility Funding Options/Public Incentives Economic & Fiscal Impact Analysis RFQ/P Processes Partnership Options Business Plans

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HSP…. Host, Stay, Play

San Juan Phoenix Kentucky Madison Chicago Fort Worth

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Public and Private Sector Employment Experience

City of Indianapolis Bond Bank/Mayor’s Office 1996 - 1998 Capital Markets, Consulting 1999 - 2005 Hunden Strategic Partners – 2006 - Present

25 Years of Industry Experience Nationwide

600+ Projects and Studies Speaker, Teacher and Author Move projects from Concept to Reality

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Rob Rob Hunden, unden, Pres esident dent & CEO EO

The Challenge for DMO’s: Communicating Your Value Proposition

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Value to the Local Economy

DMO’s recognize the value

• f

the tourism and placemaking industry to their local economy even when politicians and EDC’s do not. Yet what does the evidence show?

Migration

While many factors drive growth and migration patterns, including cost of living, taxes and job growth, we see migration moving toward areas with strong and growing tourism.

Migration

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Migration

The fact is, people are migrating to places that have made placemaking, tourism and quality of life a priority. With the Baby Boomers retiring, they are moving to places they enjoyed visiting on vacation and for conventions during their careers. Millennials are choosing based

• n

similar factors, with an emphasis on experience.

Migration

Often, these are lower tax states and cities, but people must be drawn to a place. Cost of living cannot be the

• nly decision-making criteria.

People are drawn to a place they enjoyed visiting, has a growing and vibrant sense of place, downtown area and walkable, interesting areas with fun things to do, etc.

Benefits for Both Sides

The fact is, the things you build for tourists (event centers, attractions, districts) benefit local citizens and are often paid for with visitor dollars (hotel, auto rental and restaurant taxes).

Who Do We Build it For?

BUT, we

• ften

really shouldn’t be building for the tourist per se. What we know to be true is that visitors are drawn to the things that are attractive to locals. Do not build for the visitor. They can see right through that! Build for the local, make it unique to you, and the visitor will follow.

Who Drives Placemaking? The New Consumer

The New Consumer of today is different than any generation before them. The unique needs and desires creates an interesting opportunity in the creation of new attractions and facilities. What’s important: § Social Media is King § Efficiency and Immediacy § Authenticity and Transparency § Casual Lifestyle § One-World Concept § Value of Experiences § Soullessness of Sameness § Visual Appeal § Community § Multiple Music Genres § Lifestyle Options § Environment/Animals § Travel § Vehicles/Biking § Big Ticket Items § Currency § Adventure with Food § Cooking vs. Take-out § Fonts and Design § No Loyalty to Big Corporations § Charitable Companies § Gaming and On- Demand Streaming § Esports § Work Smarter Not Harder § Pop-Ups § Online Perks § Efficient Urban Living § Authentic Process/Product § Television and Movies § Geeking Out and Hi- Tech § Thrills and Experience § Fitness § Team Sports § Dating

Social Media Is King

The new consumer sees social media as a way to create their own personal brand and social value. All information is constantly updated. Younger generations also prefer real-time social media platforms such as Instagram and Snapchat, while

• lder generations still use Facebook and email.

Any new facility must have ample Wi-Fi and charging stations. IM IMPLIC ICATIO IONS Use it to promote events, authenticity, videos. Be aware that it can also ruin you, but don’t let that take your edge away.

Efficiency and Immediacy

• f Time and Effort

We live in a world of instant access. Videos, information, and coupon deals all come in the blink

• f

an eye through smartphones and

• internet. The new consumer does not like to wait.

If they are forced to wait, the outcome better be worth the delay. IM IMPLIC ICATIO IONS Experiences should be available without long lines, advance planning. Pop-up experiences should be part of the plan!

Authenticity and Transparency

The new consumer demands authenticity and transparency, especially with government, business corporations and authority. Big corporations and politicians are seen with

• skepticism. They prefer local start-up businesses

with accountability to their product and the community they serve. IM IMPLIC ICATIO IONS Pop-up shops and authentic vendors bringing new and different experiences, products and food/drink. Cannot assume a 5-7 year lease will work.

Priority on Experiences

The new consumer places a priority on the value

• f experiences more than material goods. They

would rather spend money on a Coachella concert than invest hundreds into a new suit. Luxury items such as expensive jewelry or investing in a suit for a job, therefore, are decreasing in popularity. IM IMPLIC ICATIO IONS Standard in-line retail and chain restaurants are passé. Careful about investing in anchor- experiences like Top Golf. While experiential, these will fade as all

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experiences do. Experiences must be constantly re-imagined within a space. Plan for it.

Visual Appeal/Design

The new consumer prefers to live-in-the-moment and values visually dynamic apps, design and architecture with no boundaries. Sharing unique design through social media amplifies this trend. IM IMPLIC ICATIO IONS The ability to present constantly changing and engaging graphics (video or light) is critical and allows the experience to change constantly. Times Square mini-version, but interactive, everywhere. An iPhone is more interesting, constantly, so that is the competition for time/attention.

Small, Efficient, Urban Living

The new consumer has fewer possessions because most of what they need is accessible online and delivered the next day. Therefore, tiny houses and apartments are the rage. Their living quarters are more about affordability, physical accessibility, convenience and ease. They like to have quick access to retail that offers daily provisions, and prefer to shop online for durable goods. They do not require homes near most other retail, and only shop at those stores if they can’t wait for Amazon to ship it to them. IM IMPLIC ICATIO IONS Smaller portions at restaurants, smaller packaging and products. These may influence tenants, but maybe not real estate as much.

Authentic Process/Product

People of all ages are seeking out authentic processes and products from unique processes. The Kentucky Bourbon Trail and Craft Trail distilleries are great examples. Even within this tourism explosion, a certain segment seeks out non-corporate, single-batch bourbons and related

• products. Of the items sold in gift shops, 80% is

unique product, while 20% is everything else. IM IMPLIC ICATIO IONS The whole experience, landscaping, music and lighting, not to mention tenants, cannot feel corporate or mass produced. People will pay more for the “inefficient” experience, process or product.

BOHO Expo

§ 12,000 square feet § 100% Colombian artisan retail products § 133 total stalls offers a new flexible and changing array

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retail to keep locals interested (received 5,000 applications) § Very small pop-up shop spaces (about 8’x5’)

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Oxbow Market

Located in the Oxbow District of Napa, Oxbow Public Market has become a food and gathering place for residents and visitors throughout the Napa Valley. § 40,000 square feet § Scenic outdoor deck with seating along the Napa River § Local food vendors, artisan cafes and organic produce outlet for local farms § First 3 years were slow and had to reassess the tenant mix, add promotions § Popular as a stopping point between San Francisco and the heart of Wine Country

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Ponce City Market

Located in Atlanta on the BeltLine recreation trail and opened in 2014, Ponce City Market is housed in the fully renovated Sears, Roebuck & Company building. The rooftop Skyline Park area offers panoramic views, a bar, an upscale club, and is a major attraction by itself. Event space, bike valet and showers for cyclists are available. § Cost $250 million

• 259 apartments
• 330,000 square feet of retail
• 500,000 square feet of office

§ Rental Rates: $1,595 - $3,500+ per month (some affordable housing also available)

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So what are some examples

• f places that have seen

tourism translate into growth and economic development?

Very Small Places (Under 100,000)

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Heber City, Utah

2010 – 2018 Growth: 41.3% 2015 – 2018 Growth: 14.0% Focused on tourism, downtown, recreation, quality of life. Situated between Provo, Orem, Salt Lake City & Ski Resorts

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Heber Micro 2018 Area Population: 33,240

Prineville, Oregon

2010 – 2018 Growth: 13.8% 2015 – 2018 Growth: 11.2% Once devastated by timber and industry decline; rebounded due to tourism and quality of life, as well as low cost of living and power, which attracted data centers from Facebook & Apple in 2010, 2012.

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Prineville 2018 Area Population: 23,900

Jefferson, Georgia

2010 – 2018 Growth: 16.4% 2015 – 2018 Growth: 11.0% Last Year Job Growth: 5.3% Exurb of Atlanta and north of Athens, using downtown and quality of life to lure those looking for the best of both worlds.

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Jefferson 2018 Area Population: 70,400

Ellensburg, Washington

2010 – 2018 Growth: 15.8% 2015 – 2018 Growth: 9.9% Most centrally-located city in Washington, home to Central Washington University, growing

• rapidly. Large inventory of

properties at much lower prices = more land at affordable prices than cities west of the Cascades.

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Ellensburg 2018 Area Population: 47,400

Small Places (100,000 – 400,000)

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• St. George,

Utah

2010 – 2018 Growth: 24.3% 2015 – 2018 Growth: 11.0% Last Year Job Growth: 4.9% Isolated desert community attracts both outdoor recreation enthusiasts (proximity to Zion National Park), and workers in the service industry. Las Vegas is just

• ver 90-minutes away. Four of

every five new residents were not born in St. George.

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• St. George 2018 Area Population: 171,100

Bozeman, Montana

2010 – 2018 Growth: 25.0% 2015 – 2018 Growth: 10.9% Attracts families with higher incomes due to proximity to recreation opportunities such as first class skiing and Yellowstone National Park. Montana State University adds a big-city cultural flair. Recently expanded airport is now the busiest in Montana, offering best connectivity in the region.

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Bozeman 2018 Area Population: 112,000

Bend, Oregon

2010 – 2018 Growth: 21.7% 2015 – 2018 Growth: 10.3% Last Year Job Growth: 3.0% Tourism growth and laid-back, craft-beer, artsy, and outdoorsy lifestyle, with no headaches of big city. Ample skiing, rock climbing, hiking, and far sunnier weather than the coast. Entrepreneurs thrive, with the most new registered businesses in the state in 2017.

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Bend-Redmond 2018 Area Population: 192,000

Greeley, Colorado

2010 – 2018 Growth: 24.3% 2015 – 2018 Growth: 10.3% Last Year Job Growth: 3.1% White and blue collar industries both booming in Fort Collins and Greeley, due to pro-business

• climate. Both university towns.

People want to be near the mountains, but away from the urban intensity and expense of Denver.

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Greeley 2018 Area Population: 314,300

Daphne- Fairhope- Foley, Alabama

2010 – 2018 Growth: 19.6% 2015 – 2018 Growth: 7.4% Two spines of growth: Eastern Shore along the coast of Mobile Bay, growing affluent string of Mobile suburbs with upscale shopping and quaint

• downtowns. Central Baldwin,

has beach tourism. Foley Sports Complex draws youth tournaments and tourism.

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2018 Area Population: 218,000

Medium Sized Places (400,000 – 1,000,000)

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Myrtle Beach, South Carolina

2010 – 2018 Growth: 27.7% 2015 – 2018 Growth: 11.5% Last Year Job Growth: 4.5% Known for tourism, now becoming a truly balanced economy, with higher education and retirees moving in.

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Myrtle Beach 2018 Area Population: 481,000

Provo- Orem, Utah

2010 – 2018 Growth: 20.3% 2015 – 2018 Growth: 8.7% Last Year Job Growth: 3.5% Burgeoning high-tech corridor (Silicon Slopes). Utah Valley State University growing + Brigham Young University. While close to Salt Lake City’s suburbs, Provo-Orem has its own distinct youthful culture and a more business-friendly climate.

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Provo-Orem 2018 Area Population: 634,000

Boise, Idaho

2010 – 2018 Growth: 18.5% 2015 – 2018 Growth: 8.2% Last Year Job Growth: 3.6% Young families seeking jobs and and seniors seeking a moderate climate and low cost of living, attracted by the mountains and sunny weather. Tech companies relocating from Seattle and San Francisco + organic growth.

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Boise 2018 Area Population: 730,000

Bentonville- Rogers-NW, Arkansas

2010 – 2018 Growth: 18.5% 2015 – 2018 Growth: 6.7% Last Year Job Growth: 1.8% Focused on downtown, biking, walkability, culture, quality of

• life. Major facilities investments

in hotels, museums and downtown.

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Northwest Arkansas 2018 Area Population: 550,000

Greenville, South Carolina

2010 – 2018 Growth: 10.0% 2015 – 2018 Growth: 3.9% Last Year Job Growth: 1.2% Focused on curated downtown, recreation, quality

• f life. Continue to seek event

facility development.

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Greenville-Spartanburg 2018 Area Population: 907,000

Large Places (1 million+)

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Austin, Texas

2010 – 2018 Growth: 26.3% 2015 – 2018 Growth: 8.3% Last Year Job Growth: 2.1% Tech and university center. Massive expansion of convention center just approved to accommodate demand.

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Austin 2018 Area Population: 2,168,000

Las Vegas, Nevada

2010 – 2018 Growth: 14.4% 2015 – 2018 Growth: 6.4% Last Year Job Growth: 2.4% Massive expansion of convention center underway to support continued demand

• growth. New Raiders stadium.

Becoming a real city!

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Las Vegas 2018 Area Population: 2,232,000

Dallas-Fort Worth, Texas

2010 – 2018 Growth: 17.3% 2015 – 2018 Growth: 6.1% Last Year Job Growth: 3.0% Downtown placemaking and event facilities throughout the region. Expanding airports support diverse marketplace.

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DFW 2018 Area Population: 7,540,000

Phoenix- Scottsdale, Arizona

2010 – 2018 Growth: 15.9% 2015 – 2018 Growth: 6.0% Last Year Job Growth: 2.8% Converting tourism into economic development, adding new facilities, attractions and downtown renaissance.

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Phoenix 2018 Area Population: 4,858,000

Nashville, Tennessee

2010 – 2018 Growth: 15.6% 2015 – 2018 Growth: 5.6% Last Year Job Growth: 2.6% Focused on downtown, tourism, music, culture. New convention center helped downtown turn the corner and now supports 1 million room nights.

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Nashville 2018 Area Population: 1,931,000

Florida – A nice place to visit … and live!

The Villages + 38% Cape Coral/Fort Myers + 22% Orlando + 21% Lakeland/Winter Haven + 18% Naples-Marco Island + 18% Crestview-Fort Walton Beach/Destin + 18% Punta Gorda + 16% Sebastian-Vero Beach + 14% Port St. Lucie + 14% Jacksonville + 14% Daytona Beach + 12% Sarasota/Bradenton + 7%

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What Do These Have in Common?

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Placemaking

Built Environment + Events + Leveraged Assets (natural beauty, etc.) = Economic Development, Tourism, Migration

Call to Action: So Now What?

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What can you influence?

EDC and DMO pro’s can influence policy, sure. But directly, you can change the built environment through studies, funding tools and coordination, including:

• Event Facilities & Spaces
• Districts (Retail/ Restaurant/

Entertainment)

• Events (consistent, impactful)
• Hotels

Self-Study: Facilities & Events Master Plan

Unlike tourism

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economic master plans that often focus

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intangibles like

• rganizational

strategy

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branding, places need to understand what they offer in terms of the built environment. A place becomes compelling with the help of the curated, built environment.

Feasibility Studies

Once a high-level matrix of gaps and strengths in terms

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development is known, then deep-dive feasibility studies can be conducted, whether that is for a convention center, youth sports complex, urban entertainment district, hotel

• r arena.

Development 101

In my other classes and in real life, we teach and study development processes to move communities through that process. With over 600 studies and $4 billion in transformative projects

• ver the years, you learn a few

things. Our goal is to help EDCs, DMOs and

• thers

understand what comes next and how to get there.

Development 101

Facilities & Events Assessment & Master Plan Market and Financial Feasibility Study Political & Financial Buy-In Developer Solicitation & Selection Deal Development & Funding

https://hundenpartners.com/downloads/

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Questions

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Contact Information

Rob Hunden President and CEO Hunden Strategic Partners 213 W. Institute Place, Suite 707 Chicago, Illinois 60610 (O) 312.643.2500 (C) 312.933.3637 www.hundenpartners.com rhunden@hundenpartners.com