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October 3, 2005 Oil and Tourism As gas prices continue to hover near $3/gallon, and with continued uncertainty regarding when or whether they might "settle down", it behooves the travel industry to think about how gas prices and tourism are connected. The industry also needs to do some proactive planning in order to minimize adverse economic impacts that high gas prices could easily cause. Dr. Peter Tarlow (a popular author and speaker on tourism topics who spoke at the 2002 Governor's Conference on Tourism) wrote about the oil – tourism connection in his latest newsletter and here is a summary of his thoughts with some of our own added in: It is obvious that leisure travel is a luxury…not something people need to do. Right now, the travel industry has no way to predict the gasoline price point at which travel becomes so expensive that people simply decide to forgo it. For some, that point may have already been reached…and probably not because of the cost of fuel itself for an specific trip (our research shows transportation costs comprise only 7 – 9% of the cost of a trip)…but because everyday gasoline and heating fuel costs eat up discretionary income which is then not available for travel. Also, in markets where gas prices have traditionally been stable and low (like the U.S.), suddenly high and frequently fluctuating gas prices cause uncertainty and anxiety about the stability of the broader economy. The tourism industry will need to consider how "gas pump shock" may cause people to react emotionally because tourism is a business of emotions. While no one can predict the future, businesses and organizations can plan for it, and a good assumption right now would be that gas prices will continue to rise for the foreseeable future. This assumption should not provoke panic, but creative planning. More than ever the tourism industry needs to be thinking of its product as an integrated whole rather than as a series of independent components. High fuel costs mean travelers will be seeking other ways to economize. Visitors do not see their travel experience separately as hotels, restaurants, transportation and attractions, but rather as a unified experience. The tourism industry needs to do the same. Each component needs to be working with other sectors of the industry to find ways to compensate for higher fuel prices. Visitors need to perceive their total travel experience as worthwhile…and a value or the industry's individual components will suffer. Hold a local summit including lodging, dining, attractions, recreation and other travel businesses…and perhaps even related retail and government representatives. Develop several scenarios and then create strategies to meet potential challenges. In a crisis it is always easier to modify an established plan than try to develop one from scratch. Do you know where the visitors to your community come from? High gas prices can affect traditional travel patterns and this might be a good time to survey visitors. The Department of Tourism can help develop a survey instrument that will yield valid and useful information that can be used to fine tune your advertising message to the markets you need to reach. A marketing plan should probably include gas price incentives. Rather than just react to higher and higher gas prices, be proactive with promotions that acknowledge high gas prices and the anxiety travelers may be feeling about them by including a free tank of gas or a gas card. Its always a good idea to review levels of customer service and to create new ways to show appreciation to visitors who choose your destination "Welcome passports" valid at various restaurants, hotels, shops and attractions where visitors receive a free "extra" is a great way to thank travelers and assure their repeat business. As you make plans locally to address the gas price issue, please keep the Department informed…and we will do the same.
Three Important Reminders 1. The Department is repeating the "Life's So Good" mini-grant program for this winter. Any nonprofit tourism organization may apply for up to $1,000 to be used for a local marketing or public relations effort that will raise awareness of the Wisconsin – Life's So Good slogan among state residents. Call the Department for a list of good examples and creative ideas. Applications are due by November 1 and grants will be awarded November 11. Projects should be implemented between November 14 and March 1. A short, easy to use grant application is available at agency.travelwisconsin.com. 2. The Wisconsin Association of Convention and Visitors Bureaus has scheduled their fall conference for Thursday, November 3 and Friday, November 4 in Sturgeon Bay. A keynote by leading brand strategist Rick Stone (Lindsay, Stone & Briggs) tops an agenda of sessions on tourism trends, e-marketing, ag-tourism, secret shopping, public relations and more. Register online at wigcot.org/wacvbconvention. 3. The Department's Marketing Committee is meeting in Madison this Tuesday, October 4 at 9a.m. The topic for the three hour meeting is "The Future of the Motorcoach Market." A keynote by Jeff Gayduk, President of Premier Tourism Marketing which specializes in group travel publications will be followed by a panel discussion featuring several group travel experts and some Q and A with the committee. Reserve space by e-mailing dzanoni@travelwisconsin.com right now. The meeting will be held at Madison's Concourse Hotel.
Beloit To Biloxi, Madeline to Dauphin: We Feel Your Pain Two Wisconsin communities sponsored Hurricane Katrina benefits recently, not only helping the storm-damaged south but also drawing people into their own Wisconsin downtowns for a new look-see. A Wisconsin Main Street Community since 1988, Beloit and its Downtown Beloit Association (DBA) sponsored a fundraiser over the weekend to assist similarly sized and recently flood damaged Biloxi, Mississippi. An evening community concert, preceeded by food sales, and local business promotions throughout Beloit's progressive, unique and pedestrian-oriented downtown were all well received. Madeline Island, one of the Lake Superior Apostle Islands, raised over $22,000 which will be sent to assist Dauphin Island, an Alabama location which also has a tourism-based economy. The two islands have other similarities...both were settled by French Canadians, both were named after women who lived on the islands, and both have shared the ferry boat MV Charlotte which is now serving Madeline Island.
But…It Has Such A Nice Name The super-destructive Emerald Ash Borer has found its way into Wisconsin after a two year stopover in Michigan. This imported insect merits our attention because the only known method to stop the little bugger from destroying green ash is to cut down all ash trees (healthy or infected) in a large radius of any which happen to get infected. The issue is of relevance to the tourism industry because the Emerald Ash Borer typically travels from place to place in ash firewood which visitors bring along in trailers or pick-up trucks. We need to encourage campers to get their firewood locally in order to prevent what could be some pretty widespread deforestation.
Have You Heard? Deputy Secretary Genyne Edwards is leaving the Department after three years of service. She is returning to her hometown of Milwaukee where you will see her name connected with various arts/cultural/tourism projects in the future. (In a rare "Have You Heard" personal note…we here at Tourism are very sorry to be losing Genyne's unique talent and enthusiasm for travel issues, especially those related to arts, culture, urban and multicultural tourism. Genyne has been a compelling and articulate spokesperson for the Department and for the travel industry in media appearances, at conferences and conventions, and in inter-agency meetings, as well as at meetings and appearances where most of you have met her. Genyne's marketing talent, administrative competence, interpersonal skills and sense of humor helped the Department to be a better, more professional asset to the tourism industry and we hope you will join us in thanking Genyne for her exemplary service to our state and wishing her well with new tourism-related challenges. Two celebratory send-offs for Genyne have been scheduled in Madison…one on Tuesday, October 4 and the other on Wednesday, October 12. If you are able to attend either or both please call 608-266-2345 for time and place details.) Dave Clements is the new Executive Director of the LaCrosse Convention and Visitors Bureau succeeding Tom Tourville who has returned to his home state of Iowa to become Director of the Lakes Art Center in Lake Okoboji. Dave has a long career in the travel industry, most recently in management with the Baymont Inn franchise. Sheila Nyberg is the new Economic Development Director for Clark County, and will be handling Clark County's tourism promotion activities as well. Department Meetings: Tuesday, October 4. Marketing Committee. 9a.m. – Noon. Concourse Hotel. Madison. Friday, October 28. Meetings and Conventions Committee. Noon – 2p.m. Tourism office. Madison. Wednesday, November 16. Governor's Council on Tourism. 10a.m. – 2p.m. Tourism office. Madison. Thursday, November 17. Joint Effort Marketing Committee. 2p.m. – 4p.m. Tourism office. Madison |