fort monroe tourism feasibility, marketing and development analysis may 28, 2008
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Fort Monroe Tourism Feasibility, Marketing and Development Analysis May 28, 2008. Agenda. Tourism Market Overview Marketing Strategy Development Plan Options Questions and Discussion. Tourism Market Overview. There were 35 million visitors to Virginia in 2007 - PowerPoint PPT PresentationTRANSCRIPT
ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis
Slide 1
Fort Monroe Tourism Feasibility, Marketing and Development Analysis
May 28, 2008
ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis
Slide 2
I. Tourism Market Overview
II. Marketing Strategy
III. Development Plan Options
IV. Questions and Discussion
Agenda
ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis
Slide 3
Tourism Market Overview
There were 35 million visitors to Virginia in 2007 Virginia tourism has been in a no-growth
pattern since 2003 Average party size is 1-2 persons,
indicating childless couples 78% are overnight visitors 57% utilized hotel/motel
accommodations 40% visitation was leisure-oriented Tourists to Hampton today are regional
• 25% visitors are from Virginia• 12% visitors are from North Carolina• 7% visitors are from Maryland
ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis
Slide 4
Cultural Attractions Overview 11 historic sites and battlefields and
3 wildlife/wilderness National Parks within 200 miles of Fort Monroe 2007 attendance was 7.8 million persons Colonial National Historic Park is the most
heavily visited Historic sites and battlefields have the
highest total visitation throughout the year
NPS Site Visitation by Month (2007)
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
J F M A M J J A S O N D
Rec
reat
ion V
isits Historic Site or Battle Field
Military Park
National Monument
National Park
Other NPS
Wild/Wilderness Area
Total All Sites
ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis
Slide 5
Recreational Tourism Market Overview There are 3,151 hotel rooms in The City of
Hampton Average annual occupancy is 58.1%
• Annual occupancy declined from 66% in 2002 to 58% in 2007 Average daily rate is $73.89; VA average is $93.
• Summer room revenue is nearly 4 times winter room revenue More than 1/3 annual stays were between June and
August There are 27 marinas within 30-minutes of Fort
Monroe 50% maintain a wait-list Demand exists for new facilities or 40 ft. + slips Amenities and services are important attributes Average Hampton Slip Rental Rates:
• Nightly: $1.35-1.85 per foot. • Long-term: $6.25 to $8.00 per foot per month • Semi-annual: $8.50 to $10 per foot per month.
There are 14 RV spots at Fort Monroe today Average nightly rate: $24.50 Most RV Parks offer swimming amenity, some charge
premium for views Facilities must be larger and offer more amenities to
demand premium rates; expansion potential exists
ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis
Slide 6
Fort Monroe has strong tourism potential Historic significance attracts several submarkets
• Military Historians• African American visitors• Preservationists
The site’s natural beauty, beach, recreation facilities, marina, and campgrounds draw resort and recreation visitors
Projected Market Estimated visitation (conservative, stabilized
year)• 100,000-150,000 annual cultural attractions visitors• 115,000-125,000 beach visitors• 225,000-275,000 total visitors
If a brand is obtainable, 130-150 room resort can be supported
Seasonality will mirror beach destinations• High season will be three summer months• A two month shoulder season will bring additional visitors
Initially, regional visitors will be price sensitive
Tourism Market Potential
ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis
Slide 7
I. Tourism Market Overview
II. Marketing Strategy
III. Development Plan Options
IV. Questions and Discussion
Agenda
ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis
Slide 8
A cultural museum cluster anchored by a Civil War Museum told from three perspectives will draw visitors and highlight historic significance
A link to “America’s historic triangle” will elevate Fort Monroe’s visibility on a regional and national level
The Fort Monroe hotel, if designed to evoke the historic Hygeia Hotel and nationally branded will enhance the area’s national exposure, draw recreational travelers and link to the area’s history
Recreational areas like the beach, marina and RV park can be marketed and functioning in short order support and promote Fort Monroe through its development
Marketing Strategy Components
ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis
Slide 9
Marketing Strategy Timeline
The Museum/Cultural/Historical cluster will likely take 7-10 years to develop and facilities should not be marketed until the year prior to opening Incremental/existing cultural attractions (i.e.
a retained Casemate museum, fort and historic driving tour) can be marketed much earlier
Recreational amenities can be marketed as soon as improved facilities are completed Public beach, marina and RV park can be
marketed when available Incremental improvements and enhanced
access and parking will be necessary to attract visitors to recreational components
ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis
Slide 10
Cultural Attraction Cooperative Agreement
Expand “History Triangle” to “America’s History Quadrangle” to include Fort Monroe A regional/national/international joint marketing
agreement with Williamsburg, Yorktown and Jamestown will require funding and strategy compliance among four partners
An agreement may take several years to craft Fort Monroe’s interpretive direction will heavily
influence the scope and benefit of this agreement
Will broaden the appeal to cultural visitors coming to the Hampton Roads Area
Can extend the stay and spending of existing visitors with enhanced attractions options and marketing
ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis
Slide 11
Marketing Funding Sources and Plan Each component should be included in a
comprehensive marketing program to promote Fort Monroe as an addition to attractions in the Hampton Roads region
The VTC, foundations, special interest groups and other donors could financially support programs and facilities Educational programming and school trips costs Tourism marketing could be sourced through
VTC Donors may sponsor special exhibits and events Exhibits and programming sponsorships
Connections with area Universities can be beneficial Promote educational materials and research
without extensive funding required by FMFADA 3-5% of overall operating budget should be
dedicated to marketing programs/costs
ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis
Slide 12
I. Tourism Market Overview
II. Marketing Strategy
III. Development Plan Options
IV. Questions and Discussion
Agenda
ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis
Slide 13
Development Plan Both a private (FMFADA) and public
501(c)(3) non-profit will be needed to maximize revenue/contributions Both organizations could manage non-profit
and for- profit/commercial activities Costs and revenue allocations to be
determined by future phasing, capital investment requirements and partner capacities
Several management and development options exist for both entities: Concessions contract Direct Management National Park Service Ground Lease Sale
ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis
Slide 14
Development Options Pros/Cons
Concessions Management Pros: Highly experienced, efficient, well-funded, easily obtain
necessary financing, steady franchise fee income stream Cons: Institutional, high overhead, will limit control, may be hesitant
to take on non-revenue producing components Direct Management
Pros: Maintain complete control, cohesive plan, strong revenue potential
Cons: Require high capital investment from FMFADA, may be difficult to obtain financing/funding, lack experience in management of hospitality operations, take on complete project risk
Ground Lease Pros: Steady rental income stream, Maintain ownership of sites, no
capital investment requirement, long-term value enhancement Cons: Limited development control, can be difficult to finance, may
lack cohesion with introduction of sub-leasing and various management agreements for separate components
Direct Sale Pros: Large immediate capital income to fund non-profit initiatives Cons: Complete release of control, lack of cohesion, no long term
income potential; will not address long term guarantees for quality and protection
National Park Service Pros: Will ease linkage to “America’s Historic Triangle”; guarantees
some government funding, maintains site cohesion, guarantees site’s protection in perpetuity; NPS is a ‘brand”
Cons: Bureaucratic, under-funded, restricted income potential, tax exemption limits fiscal and economic benefits for surrounding community; lease terms limit use of historic tax credits