¥6 . * : ^>: 7/6 Creating Economic Growth and Jobs Through Travel and Tourism A Manual for Community and Business Developers U.S. DEPARTMENT OF COMMERCE Economic Development Administration Digitized by the Internet Archive in 2012 with funding from LYRASIS Members and Sloan Foundation http://www.archive.org/details/creatingeconomicOOunit Creating A Manml Economic and Business for Community and Businei Developers Growth and Jobs Through Travel and Tourism Prepared by West Virginia University for U.S. Department of Commerce United States Travel Service Economic Development Administration U.S. Department of Labor Employment and Training Administration Small Business Administration West Virginia Governor's Office of Economic and Community Development West Virginia University February 1981 /C\ § »v %# \ ,. Yes c. Do you provide discounts to travel agents? c , Yes d. Do you offer group rates? d. Yes 3. Are advance reservations required? 4. Do you advertise your facility? IF YES: a. Do you advertise locally? b. Do you advertise throughout the state? c. Do you advertise in other states? c. IF YES: In which _Yes _Yes _Yes Yes "Yes _No No ~No _No _No _No No "No _NA NA ~NA _NA NA d. In which states do you advertise? d. (2) private but open to the 5. Is the facility: (1) public _ public (3) private, not open to the public 6. When is the facility open? (Hours, days of week, seasons) 7. a . How many indoor courts do you have? b.How many outdoor courts do you have? c.How many of the outdoor courts are lighted? b. c. 8. What other facilities do you have on the premises? 01 Snack bar 02 shower facilities 03 locker rooms 04 restaurant 05 cocktail lounge 06 game room _ 07 pro shop 08 gift shop _ ac lity 1.8 n County Code Facility type a b. c. d. 3. a. b. c. 1-4 5-6 7-10 11 12 ] 13-14 17 18 19 20 21 22 23 24 25-26 27-28 29-30 31-32 5. □ 33 6 I 1 1 1 34-36 7. a b. ■^~ ^™* 37-38 39-40 41-42 43-44 45-46 47-48 49-50 36 hired specifically for the project. On the other hand, hired personnel may provide a greater measure of control and consistency. Other sources of personnel might include service clubs, university research classes, regular personnel of local chambers or travel development groups. Resourcefulness in locating volunteer personnel, coupled with good direction of their efforts is perhaps the most feasible alternative. Training of the data collection personnel should include familiarization with the objectives of the inventory and the overall development program. In addition, the interviewers should be trained to handle specific problems that may arise, such as reluctance to participate, or misinterpretations of responses, e.g., "We don't charge admission, we ask for a donation." Pre- testing the questionnaire is difficult given the scope of the inventory, but consistent monitoring of the results and problems that do arise will prevent replication of errors. The potential obstacles to successful data collection are summarized below. Many of these problems can be avoided through proper advance planning and personnel training. (1) Every type of resource item must be clearly defined and inter- view personnel informed of these definitions. Interpretations of what an activity or facility might be called is a major problem. For example, "a park" might be defined as everything from a neighborhood park that has a playground or ball field or simply park benches, to the f ul 1 -faci 1 i ty state or national park, with a host of variations between the two extremes. Substituting "playground" for the first type of park led to counting school- yard playgrounds, later decided to be of little interest for the purpose of the inventory. The planner must try to define each resource as specifically as possible, but be prepared for unfore- seen interpretations. Continual monitoring of the data being collected will assist in spotting such potential problems before they get out of hand. (2) A major problem encountered initially in the demonstration project was that of counting a resource item more than once. For example, there are convention facilities that stand alone while others are part of a motel complex. If a questionnaire on available convention facilities is used, the same facility should not be included in both the hotel/motel questionnaire and the convention questionnaire. This point should be stressed as part of the training procedure for the data collection personnel. (3) A decision must be made before the questionnaires are developed as to what is being counted. In the area of entertainment, for example, the number of theatrical performances (exhibits, concerts), or performing groups, or facilities for such per- formance could be counted. The approach used in this project was to initially count the facilities; the next step, as part of the marketing strategy product analysis, was to determine 37 if those facilities were being utilized to capacity, or if additional performances were needed to augment the travel product. (This analysis is discussed further in Chapter XI.) Careful definition and classification, questionnaire design and personnel training will assure that what is counted does not mix apples and oranges. (4) The system of classification of resource items used in this study is suggested only as a guide. If another system seems more appropriate, it should be designed and implemented, but some type of classification system is necessary for organizational purposes. (5) Cooperation on the part of the person or persons who represent the source of information is essential but may not be readily given. People from both the business sector and the community sector may be reluctant to spend time talking to an interviewer. Survey personnel should be prepared to explain the purpose of the data collection and the importance of the travel industry, its contribution to the local area in terms of employment and financial opportunities. Here, too, the sponsorship of the inventory can be important. Endorsement by local groups, such as the Chamber of Commerce or local historical society, will reassure respondents of its legitimacy and relationship to their interests. (6) The value of some items to the travel development strategy may be questionable based on the data provided for the inventory questionnaire. The location of the resource item may not be accessible to the traveler, or a hotel may only rent on a monthly basis. The research team may only be able to discover such deficiencies through an on-site visit. Data collection for such facilities is unavoidable if a complete inventory is to be compiled, so the discovery of such items should not be discouraging. The owner/operator may be willing to make the needed improvements or pol icy changes as the travel development program takes shape. (7) Constant contact with business and community leaders is necessary to identify new resource items not yet listed in telephone directories or other sources. The inventory, once completed, represents only a snapshot of what existed at a given point in time. A review and update of the inventory will be necessary periodically as development proceeds. To keep track of the changes, it is recommended that a different color questionnaire be used for revisions. Certain limitations of the inventory data should be noted. The results do not represent an evaluation of the level of quality or attractiveness of the resource to the visitor, nor do they reflect any anticipated changes 33 in the resource item which would make it more attractive to the visitor. In addition, each questionnaire is site specific and, therefore, does not provide information as to the number and nature of complementary resources that are near the resource item in question. Analysis is needed to determine if service stations, motels, and/or restaurants are near the resource item being investigated. Tabulation and Analysis of the Data The data collected in the inventory may be utilized in the following ways: (1) To analyze regional developmental needs by comparing the number of touristic resources with population, square miles and retail sales (or similar measure of economic activity). (2) To analyze the distribution and location of touristic resources in a given community, county or region. (3) As a resource tool for a travel council, chamber of commerce, or other groups needing a reference of tourism resources, their facilities, services, capacity, location and/or person-in-charge. (k) As the initial listing of sites for the on-site evaluations necessary for determination of specific product development needs (discussed in Chapter XI). 1. Regional Development Analysis Analysis of regional development needs requires tabulation of the data, best done by computer. A simple computer program, using a standard software package, such as SAS, (Statistical Analysis System) was developed to sort, count and produce tables of the resources by county, region or state. The resulting computer printout included summaries for each resource item by county and travel council, such as those shown in Tables 3, ^ and 5. The computer program summarized the data obtained in Parts II and 1 1 I of the questionnaire with reference to Part I (e.g., type facility and county). If the questionnaires are standardized as suggested, and properly coded, problems that might occur in tabulating the data will be greatly reduced. The analysis of regional development needs is relative, and thus some "standard" for comparison must be established. The recommended comparison variables include population, size (square miles) and retail sales by county or region. These three variables were used for the following reasons. Popu- lation serves as an indicator of potential need. The more people there are, the greater potential demand there should be for resources, since the region's people are also among the potential consumers for most resources. Size, square miles, is related to the number of attractions/resources that currently exist or could exist. Retail sales serves as an indicator of how well the region is utilizing its resources and of its general economic condition. 39 Table 3 NUMBER OF INTERESTING INSTITUTIONS IN WEST VIRGINIA BY TRAVEL COUNCIL AND BY TYPE IX. Interesting Institutions CRTC EGTC TRAVEL COUNCIL REGIONS* MCTC NVTC PHTC UOVTC *CRTC Country Roads Travel Council. EGTC Eastern Gateway Travel Council. MCTC Mountaineer Country Travel Council. NVTC Nine Valley Travel Council. UOVTC Upper Ohio Valley Travel Council. Tota 1 s A. Churches 1 11 1 13 B. Government Buildings 1 3 2 1 1 8 C. Mansions 1 2 2 2 7 D. Museums 6 3 9 3 5 26 E. Others 1 1 11 3 3 1 20 Tota 1 s 9 8 35 9 10 3 7A ko Table k NUMBER OF THEATRICAL ACTIVITIES IN WEST VIRGINIA BY TRAVEL COUNCIL AND BY TYPE XIV. Theatrical Activities CRTC EGTC TRAVEL COUNCIL REGIONS* MCTC NVTC PHTC UOVTC Tota 1 s A. Legitimate Theaters B. Drama Groups C. Film Festival D. Other k 3 1 1 5 k 11 3 1 19 1 2 1 3 11 Totals 16 35 *CRTC Country Roads Travel Council. EGTC Eastern Gateway Travel Council. MCTC Mountaineer Country Travel Council. NVTC Nine Valley Travel Council. UOVTC Upper Ohio Valley Travel Council. 41 Table 5 NUMBER OF HISTORICAL AND ARCHAEOLOGICAL SITES IN THE MOUNTAINEER COUNTRY TRAVEL COUNCIL REGION BY COUNTY AND BY TYPE Historical and Archaeological Sites Barbour Doddri dge Harr i son Lewis Ma r i on Monuments 1 1 Battle Sites 1 Burial Grounds 1 3 1 Covered Bridges 2 3 1 2 Forts 1 Restorations 1 Old Homes and Mi lis 4 6 Other Iron Furnace 1 Site of Pringle Tree Church 2 2 Farm 1 School 1 House 1 Indian Village Total 3 16 13 k Historical and Archaeological Sites Monon gal ia Preston Taylor Upshur Total Monuments 2 2 1 7 14 Battle Sites 1 2 Burial Grounds 1 6 Covered Bridges 1 9 Forts 2 3 Restorations 2 3 Old Homes and Mills 2 2 ]k Other 1 ron Furnace 1 Site of Pringle Tree 1 1 Church 4 Farm 1 School 1 House 1 Indian Vi 1 lage 1 1 Total 5 10 2 8 61 hi The strengths and limitations of a region are assessed by comparing the number of resources in one region to the other regions, or the state, relative to population, size or retail sales. In other words, a region with 700 square miles and 30 hotels/motels cannot be directly compared to a region having 90 motels and 6,000 square miles without adjusting for the size of the region. In this case, the first region may be said to have a ratio of 1 hotel to 23 square miles; the second 1 hotel to 66 square miles. The second region appears to be less well developed in terms of motel lodging. Other factors, of course, must also be considered. In this example, the second region is one of the more rugged areas of West Virginia, drawing many campers and backpackers; thus an important resource item in that region would be campgrounds. Another means of comparison would be the percentage of all hotels (or other resource item) in a given region compared with the percentage of square mile area of that region. Continuing the above example, the first region constitutes less than k% of the square mileage of the state's regions par- ticipating in the study; its hotels account for 3% of the hotels. Similar comparisons could be made using retail sales and population as the basis. Such analysis allows the planner to identify those areas in need of certain types of resource development. In addition, the particular strengths of a region may also be more evident with this kind of detached analysis of existing resources. As noted earlier, however, there are no absolute standards; thus there is no substitute for first hand knowledge of the regions used for comparison when the implications of the "numbers" are analyzed. 2. Local Resource Location Analysis The above approach to analysis of the data assumes availability of in- ventory data for regions in addition to your own. The inventory is still of value for all the other purposes cited if only done for the development region. In that case, the inventory data may be most useful in developing a visual reference to resources in the community and region. All tourism resources in the demonstration region were transferred to an overlay map of the county and to separate detailed maps of all the principal towns and cities. Maps can be obtained from state and regional planning and develo- ment offices, the state highway department or county offices. The maps should be large enough to allow placement of symbols for each type resource and detailed enough to allow easy location of the resource address/site. Over- lays of clear plastic can be developed by type of resource, such as attractions, recreation areas and accommodations. This visual representation of an area allows the planner to identify possible sites for further develop- ment. A highway map as one of the base maps also allows identification of traffic patterns relative to existing resources. The map can also be used in presentations explaining the travel development program and thus can serve as a public relations tool, as well. 3* Travel Promotion Resource Tool To provide a resource tool for those promoting travel, copies of the questionnaires for every resource item were put into a looseleaf binder by 43 county and given to the regional travel councils and the state travel division. The data obtained in Part IV of the questionnaire, in particular, mean little in tabulated summary form (e.g., fifteen locker rooms in the county) but do provide important reference information for each facility. These "Latchstr ing" books were then used as a reference of contacts and phone numbers, attractions, capacity, and so on for press releases, promotional materials, membership solicitation, and similar purposes. This was not the primary purpose of the inventory, but once these data are collected, the more use made of them, the better. Updating the inventory becomes par- ticularly important when used for this purpose, but the updating may be in- corporated as an ongoing function of the travel council or group using the quest ionna i res. M Chapter VI MEASUREMENT OF ECONOMIC IMPACT Dimensions of Economic Impact The importance and value of having an accurate measure of the economic impacts of visitors to a community were discussed in Chapter IV. The direct impacts include the jobs and wages created for community residents, the profits received by local businesses from sales to travelers, the direct net revenues received by local, state or federally owned facilities such as state parks or beaches, and the taxes paid to local, state and federal governments from wages and sales created by travelers' purchases. The direct impacts (sales, profits, jobs and taxes) create indirect impacts, which themselves can be very significant. For example, the hotel employee uses the after-tax wages earned to purchase goods and services from businesses, government agencies and other organizations, as does the business owner with profits. Also, the hotel purchases goods and services to support its sales to travelers. The size of these indirect effects varies from community to community, depending on the local availability of merchants and suppliers. They can total several times the size of the original tourism sale, especially if the effects of the repeated recycling of the travel sales dollar are considered; for example, the purchases made by the sales clerk whose wages come from the stores that sold products to the hotel employee. This chapter describes methods that can be used by community planners to obtain measures of the size and dynamics of the travel and tourism in- dustry in their areas. These approaches were designed to be used on a state-wide basis, but the results provide useful information down to the county level. The systematic approach which has been in use in West Virginia since 1972 has been one of the principal planning and evaluation criteria used by that state's travel industry. It should be noted that there is another aspect of economic impact that is not discussed in this chapter, but is an important consideration. That aspect is the additional outlays, principally by the public sector, to support the tourism industry. Capital investment for new facilities will normally be considered as a part of the planning process, as will the cost of operating and maintaining the facilities. But to the extent that tourists require services beyond the level that would be required for local residents--e.g. , police, fire protection, road maintenance, the costs for these services should be included in the tourism "balance sheet." Obtaining data to measure either potential or actual travel market performance is especially difficult because of the fragmented nature of the industry and a variety of definitional problems. Indeed, the industry is a collage of various size firms from many industries. The types of businesses involved include hotels, motels, tourist courts, and camp- grounds which receive nearly all of their revenues from travel and tourism, to gas stations, movie theaters, and liquor stores which receive only part of their income from travel and tourism. For the most part, there is not a fully accepted industry-wide organization that represents the industry's interests, or keeps a record of its total performance. Travel Industry Association of America (T1AA), the U.S. Travel Data Center (USTDC) , and The Travel Research Association (TTRA) have made substantial contributions at the national, international, and to varying degrees, at the regional level. But they are not yet, and may never be, able to provide much information at the state or local level, except in such high density travel areas as New York, Washington, D.C., Florida, and California. Even for these, much of the data is obtained through local, rather than national, effort and has little specific bearing on smaller states like West Virginia. The Federal Government also has developed and initiated some travel - related research programs, mostly through the Department of Commerce. One of the most valuable of these has been the Census of Transportation conducted quinquenn ial ly by the Bureau of the Census. Another important one-time effort was the study and report of the National Tourism Resources Review Commission. These also are of limited value for state level analysis. Definitional Problems General definitional problems relating to who should be identified as a traveler/tourist, and which facilities, organizations and individuals should be identified as being part of the travel /tour i sm industry were discussed in Chapter II. Definitional problems of a more operational or basic level remain, however. These relate mainly to collection, analysis and interpretation of information in order to develop a measure of economic impact. One method of measuring travel expenditures, the principal one des- cribed in this chapter, requires that a model of traveler spending behavior be defined. For reasons that will be discussed in the next section, this model is further related to the type of lodgings used or if the traveler did not stay overnight in the area. Therefore measurable categories for types of traveler expenditures--e.g. , gasoline, auto service, hotel room, groceries, restaurant meals, and enterta inment--must be defined. Moreover, general izable categories for types of lodgings used are needed--e.g. , resort hotel, camper or motor home, tent, home of friend or relative or an owned or rented vacation home. In planning for collecting the above information, it will be desirable to define categories in greater detail than probably will be used in the analysis and impact measurement. This is to assure that all relevant infor- mation needs are identified, to help travelers remember all of the relevant items, to identify and sort expenditures that may be irrelevant to the impact of travel on the planners' community and because it is often difficult to predict which specific categories will turn out to be important, and therefore warrant separate identification. An example may help to clarify the preceding comments. 46 Transportation is usually a significant part of the expense for any trip. But this expense may be in the form of fuel for a personal car, services or parts (e.g., tires, batteries), car rental fees, or airline, bus or train tickets. All of these are appropriate in measuring the overall impact on say, the U.S. economy. But, the money spent on an airline ticket in New York City by a traveler to Logan, Utah, has relatively little direct impact on the Logan area economy. Similarly, a replacement car battery purchased enroute in Chicago, Illinois, has no impact on the economy of Dubuque, Iowa, even though the latter was the tourist's destination. This leads to two related types of def in i t ions--the place of an ex- penditure and the time of the expenditure. The need for place information was discussed partly above. Time may be important for several reasons. One is of course that impact is a flow of money or continuity of jobs over a specified period of time, e.g., a year, or a particular season. Another time related factor if information is to be gathered through some form of survey comes about because of the limited ability of people to remember details of behavior and amounts of expenditures over a period of time. Although the preceding comments were made in the context of one particular method of measuring economic impact, in fact they are relevant to nearly all methods. Each of these depends on such types of information, although the level of detail, accuracy, and/or comprehensiveness vary substantially among these methods. Sources and Methods of Measurement It is important that the users of travel and tourism economic impact measurement information be aware of the wide variety of methods and associated reliability levels that are available. In general, one can assume that the reliability of these measurements is directly related to the original cost of obtaining them (e.g., cost to the primary source.) Local planners in most areas will not be able to undertake the task of collecting the information for and producing impact measurements them- selves. They will either commission this to be done by people or organiza- tions having the special technical expertise needed, or will turn to state or regional government agencies which already are doing this or can be influenced to do so. But familiarity with and understanding of the techniques and their strengths and limitations is vital if the information is to be useful in a tourism development plan. Most of the methods used to measure economic impact incorporate one or more models, i.e., mathematical relationships among and within groups of travel industry components, to project the total impact of the industry from actual measurement of a smaller number of these components. These actual measurements are themselves usually projected from a small sample taken from these components. In general the methods come under one or a combination of the following types. *»7 (1 ) Analysis of secondary data, e.g., tax records, traffic counts, unemployment records, and airport data. (2) Surveys of households of possible or potential travelers to the area. (3) Surveys of travelers to and/or within the impact area* (k) Surveys of travel related businesses in the impact area. These general methods have been adapted to unique and ongoing impact measurements by a variety of individuals, institutions and organizations. A few of these are described below with a source for further information where appropriate, and a brief description of the strengths and weaknesses of each. Criteria for selection of a method are also discussed. 1 . Secondary Data Using information already collected for some other purpose is generally the lowest cost method of conducting research. Some of the kinds of data that may be relevant to measuring tourism impact include highway traffic counter records typically collected by state, county and city highway de- partments; airport arrival/departure statistics collected by the Civil Aeronautics Board and local authorities; and reports by other organizations such as the U.S. Travel Data Center or the Bureau of the Census. This is far from a complete listing, but should provide insight into the possibil i ties. Secondary source information will provide certain essential inputs for the planning process. Some of these have been discussed in earlier chapters, and others will come out later in the manual. Also, such sources are valuable in developing bases for interpretation and analysis of primary data obtained by one of the other methods. Some impact measurement methods have been developed almost completely around the use of secondary data. One of these was designed for the State of Wisconsin, and primary input is from selected traffic counters. Another that has been widely used for several years was developed by Lewis Copeland of the University of Tennessee, and provided by him under contract to many states and cities. Measurements of travel impact based on secondary information generally suffer from the problems that the original data are not disaggregated to reflect the actual contribution of the travel -related portion. For example, traffic counters do not discriminate between cars driven by people on vaca- tion trips, and local residents on their way to the grocery store or driving to and from work. Similarly general retail trade data, say, for restaurants, doesn't distinguish local business lunches from those sold to a family from across the country. kS Hotel/motel occupancy statistics, if they were collected on a regular and comprehensive basis for all classes of hotel, would be a fairly pure measure of one part of travel impact. Unfortunately those that are avail- able, for example from Harris, Kerr, Forster and Company or Laventhol and Horwath, two firms specializing in hotel management and accounting, can't be disaggregated to the local level for most areas, and do not represent a technically valid cross-section of the lodgings industry. One source of sales volume information that may at first appear obvious and probably precise is state or local tax records, e.g., for a state con- sumer sales tax. Many states in the U.S. collect such taxes, which are charged and paid as percentages of actual sales price. If these tax receipts could be identified as to industry sector sources, such as hotels, then by simple arithmetic they could be translated into total sales for that sector. Some states, if not most, do in fact record the consumer sales tax receipts under Standard Industrial Classification (SIC) codes. This is the case in West Virginia. However, comparative examination of measurements made by other methods disclosed that the aggregate of hotel sales for the test year in West Virginia measured by sales tax receipts were over 25 percent less than the estimates derived by two other techniques. Investigation showed that this was due to the method used by the Tax Department to assign tax receipts to the appropriate SIC for businesses involved in more than one class of activity, e.g., a hotel with a restaurant and cocktail lounge. The West Virginia rule is to assign al 1 tax receipts from a business to the SIC in which the business does the greatest percentage of its overall sales volume. Thus all sales for a hotel that has a very successful restaurant will be reported under "eating and drinking places." Lodging sales receipts could be fully measured, however, if the region has an area wide room tax which applies only to transient rooms--i.e., is not collected on rooms in residential hotels. Such measurement pre- sumably would include room sales in some "hotels" that are of such low quality that they would not normally be considered part of the travel in- dustry. However, the low prices normally charged, and relatively small percentage of such places probably would result in a very small overstatement of total impact. Tax record sources other than for hotels generally contain the same problem discussed earlier regarding separating the local and tourist ex- penditures. Some types of major traveler purchases may even be excluded from tax records. For example, it is common for purchases by out-of-state customers to be exempted from sales taxes if the item is to be delivered by the seller, by mail, or by United Parcel Service. 2. Survey of Households This is the principal method used by the U.S. Bureau of the Census for the quinquennial (once every five years) National Travel 49 Survey (NTS) and by the U.S. Travel Data Center (USTDC) for its similar surveys in intervening years. These surveys provide information on origin/ destination, times and purpose of trip, travel party size, and mode(s) of transportation. They provide information on the physical impact — numbers of visitors, types? t iming--but must be incorporated with other models of traveler spending behavior, sales revenues/employment, and sales revenues/ taxes to provide a measure of economic impact. The USTDC has developed models to measure economic impact at the national and state levels, using the household survey data. It also has extended this concept to provide county level impact estimates on a contract basis for some counties in the U.S. This method has the advantage of being relatively low in cost. It is high in reliability at the national and, probably, at the state level. Whether or not the USTDC data are used directly, planners will find them invaluable reference information. Until the 1977 NTS, the household surveys had been done by mail questionnaire, and since have been by personal interview. Mail question- naires are, in general, the most cost-efficient sampling procedure. But for an area with a small market penetration per household, such as travel in West Virginia by out-of-state households, a random sample of all house- holds (say, in the Mid-Atlantic region, or perhaps the entire United States) will not be efficient. Haas and Schmidt, using a mail questionnaire approach and sampling major regional urban areas near West Virginia received only a relatively small 3.^ percent return for actual visitors. Data for the West Virginia spending behavior model are needed for at least six classes of expenditures and five lodging choice classes, a 6x5 matrix, or 30 cells. To get a reasonable average of 30 observations per cell would take 900 responses from West Virginia visitors. A mail questionnaire to a random sample from the general population in the primary market region, with a 3.^ percent return from actual visitors, would require a mailing and follow-up to 26,500 households. An additional sample of state residents would have to be added. Moreover, longer distance travelers, i.e., from outside the immediate region, are even less likely to be identified in the sample. These problems become even greater when dealing with a sub-state size region such as a county. Personal household interviews improve the response rate, but are much more costly. They also don't solve the basic problem of identifying enough of those actually visiting a small area to provide a valid basis for measurement at this level. See for example, U.S. Travel Data Center, 1977 National Travel Expenditure Study: Summary Report (Washington, D.C.: U.S. Travel Data Center, 1979). 2 J. William Schmidt and Raymond M. Haas, West Virginia Travel and Tourism Study: The Potential Market (Morgantown, West Virginia: Bureau of Business Research, West Virginia University, 1968), pp. 8-9. 50 The USTDC/Census method also is limited by the 100 mile trip de- finition, and by its nature excludes all visitors from foreign countries. No standard information source is available for rural/small community areas to obtain foreign visitor data, although some information is available for certain larger states and major cities through the USTS. The USTDC impact measurement method does include certain indirect expenditures such as imputed rent on owned vacation homes and amortization of portions of motor homes. This may or may not be desirable to the planner, 3. Surveys of Travelers As the title suggests, this method involves contact with travelers while they are traveling in the area of interest. Two types of objectives might be involved, and implementation will vary accordingly. The first, which is discussed in more detail in the section on the West Virginia Model, is to derive behavioral information, particularly spending behavior, for different classes of travelers. These data can then be applied to the counts of each type of traveler to obtain a measure of economic impact. The other type of traveler survey is used to obtain both the behavioral data and the total number of travelers of certain types. This method is currently in use in some states--Utah and Florida are among these, as well as a number of countries such as Canada, Ireland, England, and several others. For reference purposes, this will be called the Utah method, since the Institute for Outdoor Recreation and Tourism at Utah State University is one of the places that has developed the technique into a well defined and continuing program. The general concept is that travelers are intercepted according to a statistically designed sampling plan generally at points of entry or exit to the country/state/region. They are interviewed, as well as counted, to obtain trip purposes, expenditures and other needed information, and/or they may be asked to maintain a diary to record the details of their travel while in the area of interest. This entry/exit interview method is particularly useful where there is a relatively small number of clearly defined points for crossing the boundaries of a reg ion--h ighways, railroads, bus stations, and airports. It is important that persons so intercepted be likely to spend a significant amount of time in the area. And it is particularly useful when a large portion of the tourism in the area is by travelers from outside its boundaries. The Utah method is not easily used to measure, for example, travel by Utah residents inside Utah. Probably a supplemental method such as a household survey would be needed to obtain the latter information. On the other hand, if the area to be measured were small, such as one county, this would not be a problem. Other strengths include the characteristics that travelers crossing the area boundary will be identified regardless of the length of their trip or whether they stay in the area overnight. Indeed, auto travelers will 51 be counted even if they are passing through without stopping, i.e., have no impact on the area — potentially a substantial unneeded cost factor (unless there is a desire/need to secure this information). Perhaps the most serious limitation of the Utah method for many areas is its cost. Utah, as well as the other current users named, has relatively few major entry/exit points. But in areas with many entry/exit points, this method would be very expensive. While not a precise measure, the cost will be proportional to the number of points to be monitored. Examples of where this could be a problem would be the eastern states in the U.S. Moreover, a small area such as a county or group of counties probably would find this cost unmanageable on a continuing basis. Another problem with using traveler surveys to obtain complete economic impact information is that those interviewed on entry have to estimate probable length of stay and expenditures; or, if done on exit, they may have to try to remember their daily expenditures over a period that may be from several days to as much as several weeks. Either is likely to lead to larger margins of error in the ultimate impact measurement. The use of diaries given out at point of entry may help, although this adds to the cost and may be trou- bled with a substantial nonresponse rate. k. Surveys- of Travel Businesses Surveys could be made of travel -related businesses and organizations to obtain measures of tourism impact. In fact, the method used in the West Virginia demonstration project utilizes a survey of lodg ings--hotel s/motel s, campgrounds, and state park lodg?ngs--as one of its primary inputs. Other organizations that might be usefully surveyed include travel agencies, tour operators, airlines, bus companies and rental car companies. The majority of their business from true travelers/tourists can be fairly easily identified. Many traveler expenditures, however, are made in general retail estab- lishments such as restaurants, grocery stores, service stations, drug and sundry stores, department stores, gift stores as well as in attractions such as theme parks, theaters and sports events. These sales, and the re- sulting taxes and employment, represent a very significant part of the economic impact of travel. But in most cases, the business management will not have adequate knowledge or records to determine the percentages of sales made to local residents as distinguished from visitors from other places. While business surveys can provide useful parts of the economic impact measurement, they cannot provide a complete economic impact measurement. Therefore of all methods discussed so far, this is probably the least able to satisfy the planners needs by itself . 5. Selection of a Method There are at least three technical criteria that must be considered in choosing the method that will be used. 52 (1) Reliability and continui ty --The measurements should be made in a way that can be repeated in successive periods and reliably show the changes that have occurred in the amount and type of travel in the area. (2) Comprehens i veness --Measurements should cover all relevant and significant kinds of travel activity. (3) Community /Area Sensi t ? vi ty --Since the interests of the planners are assumed to be in a relatively small geographic area, the method employed should make disaggregation to this level possible. Other technical considerations may also be relevant, but are secondary to the above. It would be desirable that the data collected be in a form that allows comparisons with the data for other areas of the country. Unfortunately, the present state of economic impact measurement in the U.S. is such that achieving this may seriously compromise more important criteria. A variety of non-technical factors may also affect the design of the measurement method. For example, in gaining financial support from legisla- tive or administrative agencies, measurements need to be highly credible. Care should be exercised not to appear to overstate the size of the industry. The inclusion of components such as imputed rent on owned vacation homes, while valid from an economist's perspective, would overstate the actual cash flows from which taxes are derived. The system selected for making the economic impact measurement for a particular place/area ultimately will depend on several interrelated factors. These include the following: (1) Whether the area (e.g., state) already has an ongoing program of measurements. (2) The character of the area — number of access (border crossing) points, the principal type(s) of tourism (actual and potential), the nature of typical trips — e.g., day trips vs. overnight trips. (3) Resources avai lable--type, quality and accessabi 1 i ty of professional assistance, funds to perform measurements, level of cooperation available from state and local agencies (e.g., tax department, parks department) and authorities (e.g., highway department, state and local police, airport authorities, bus terminals). (k) Objectives, size, scope and limitations of the plan. (5) Degree of accuracy and comprehensiveness specified or needed for the measurement. (6) The way(s) in which the measurements will be used in planning. 53 The best method for most areas probably will incorporate a combination of the methods described in the preceding section. The various strengths and weaknesses discussed show that no one approach will satisfy all of the measurement needs for total travel impact. It may be that some trade-offs can be made with minimal compromise in the utility of the results, depending on the area in which tourism is to be measured. For example, the most difficult type of travel to measure by most methods is the day trip of less than 100 miles (one-way). Also the average expenditures per person day by such travelers is relatively low. Errors in tota 1 impact measurement that might result from using estimates for this segment based on secondary data will be relatively small, unless day trips are the major element of an area's tourism activity. Design and implementation of Surveys Many of the methods discussed in this chapter involve the use of surveys — either mail questionnaires or personal interviews. Information requirements described in several other chapters of this manual also require surveys (especially Chapters VII and VIM). Models of questionnaires used in these surveys are provided for several types of surveys. If survey techniques are used, their design and implementation requires professional and experienced direction. For example, the West Virginia impact measurement technique requires a model of traveler behavior. Survey techni- ques seem to be the only reasonable method for obtaining this information. Secondary sources provide data accurately enough for national averages and some of the more populous areas of the U.S., but West Virginia figures are substantially different than these because the makeup of the travel industry in West Virginia is different than the U.S. average. Estimates of day trips from secondary sources leads to some understate- ment of the impact of such travel on the state economy as a whole. However, because the cost of acquiring this information more accurately is high (com- pared to the other costs of impact measurement), it was concluded that the resulting understatement was acceptable. Day trips to two areas of the state, Harpers Ferry in the eastern panhandle and Wheeling in the northern panhandle, are very important to the tourism in these regions. Thus, while the model currently used is adequate for statewide planning, and for regional level measurements for most areas of the state, it is not as useful to these two areas. Supplemental measurements using the entry/exit interview technique would be appropriate and desirable. The difficulty in designing and implementing surveys to yield reliable and accurate information arises from two technical areas relevant to survey research—quest ionna i re design and sample selection/specification. Writing/ composing questions that can be accurately and unambiguously answered by most respondents is a skill that is developed only through training and experience. A simple example may help to explain this point. Suppose plans were being prepared to develop the skiing industry in a region, and that one part of this effort involved a survey of the area's 5h present visitors as potential skiing customers, i.e., to determine whether they might visit the facilities if constructed. In a brief survey question- naire, one question asked is, "Do you like skiing?" A positive answer to this question is presumed to identify a potential customer of the service. Critical evaluation will show that this question is ambiguous. It will mean different things to different people. Some will answer it in the ex- pected way—whether they themselves do or don't like to participate in the sport. Others who perhaps never participate could just as easily reply in the context of their like or dislike of the sport as something to watch on television. Still others could answer in the context of whether they believe it to be a "good" activity in a general sense, i.e., whether they generally approve of people participating. Furthermore, the question does not dis- tinguish between water skiing and winter snow skiing. There are many other similar pitfalls for the amateur questionnaire writer. But even if the questionnaire is well designed, the selection of the persons to complete it has to be scientifically designed and implemented or the results can be equally useless. Most surveys include only a small sample from the entire population. If the sample from each portion of this population which is of interest is not large enough or not truly representa- tive, the findings will not provide the information needed. How large the sample should be, and how the members of this sample are chosen is based on the science of statistics, and experienced people who have adequate knowledge of this subject are needed to make these decisions. It is strongly recommended that planners secure professional assistance in obtaining survey information. Not only will the results be better, and probably more believable to agencies and groups that will be important in ultimate implementation of the tourism development plan, but they will also probably be obtained at lower cost. Other Measures of Travel Industry Impact The preceding discussion of alternative methods focused on measures of sales revenues derived from tourism. Many barriers to obtaining accurate and/or complete information were identified. But as was suggested in the beginning of this chapter, several other measures are relevant and important to planning and implementing the tourism development process. These include indirect (or "multiplier") effects, employment impacts and tax impacts. 1 . Indirect Effects Every dollar spent by travelers in a restaurant, motel, or any business provides an indirect benefit to many other sectors of the economy. For example, the restaurant purchases food, napkins, and other perishables direct- ly consumed by the traveler; in addition, part of the non-perishable items needed to run the restaurant are paid for from the cost of the traveler's meal. Such payments by the restaurantuer provide revenues to these suppliers, an indirect, or multiplier, effect of the traveler's spending. 55 A comprehensive analysis of these effects for all West Virginia business sectors was prepared by Dr. W 1 1 1 iam Miernyk and the Regional Research Institute at West Virginia University. By selecting the appropriate sectors from this input/output analysis, the indirect effects of travel revenues can be estimated, as shown in Table 6. It should be noted that traveler spending, or revenues directly attributable to travelers, is the base to which the "multiplier" is applied, not all hotel, restaurant or other travel related business 1 receipts. Input/output analysis has the advantage of not requiring collection of additional primary data beyond the initial economic impact measurement, assuming an input/output model has been developed for your state or region. This method of estimating indirect impact is based on sector-wide averages, and therefore does not depend on quality of response from individual firms. The weakness in the application of input/output tables to smaller areas such as counties is that these tables are usually constructed at the state level. Therefore, to the extent that a particular area within the state is not a true microcosm of the state vis-a-vis its industry/business makeup, the estimates made in this way will be biased. Input/output tables also represent the characteristics of an area's economy at a particular point in time. Changes in the mix of factors which occur after the date of the tables and which increase or decrease the supply side of the economy will not be shown. Additionally, such tables tend to represent steady state, or equilibrium conditions. Rapid period to period changes will involve lags in employment, e.g., a rapid growth in sales at a hotel will initially be handled by the existing work force, and followed later, if the increased sales level is maintained, by the addition of new positions. Thus during such periods of rapid change this method will tend to overstate actual employment during rapid increases, and understate during rapid decreases. Indirect sales and employment can probably be derived only through input/ output analysis. At best, it is likely that the total multiplier effect will be a rough estimate. But it is very important that planners identify and consider these effects, because of the very substantial ways that these will affect the total impact measurement. 2. Employment Employment totals are relatively easily obtained, either from existing records or from surveys. But identification of the exact number of specific jobs that should be allocated to tourism is more difficult. It is imperative, however, that a means of measuring tourism supported employment be incorpor- ated in the impact measurements, because this is one of the principal goals of designing a tourism development plan. 3 William H. Miernyk, et al., Simulating Regional Economic Development (Lexington, Massachusetts: D.C. Heath and Company, 1970), pp. 258-63. 56 Table 6 DIRECT AND INDIRECT ECONOMIC IMPACT OF REVENUES RECEIVED FROM OVERNIGHT TRAVELERS IN WEST VIRGINIA 1978 (in thousands of dollars) Impact on Economy Travel Industry Sector Direct Impact ndirect Total Impact Impact 48,822 149,486 58,747 219,699 23,393 118,875 17,212 82,162 49,477 206,548 Lodgings and Accomodations Eating and Drinking Places Gasoline Service Stations Recreation Retail and Other Totals 100,664 160,952 95,482 64,950 157,071 579,119 197,651 776,770 57 The method of measuring employment in West Virginia makes use of input/ output tables, as discussed above. Using Miernyk's input-output model, it was estimated in 1978 that the equivalent of 43,700 full-time persons were employed in West Virginia either by travel businesses or by firms supplying products or services to travel businesses—as a result of traveler spending. Again, since these employment estimates are derived from traveler spending, they do not include all employment at restaurants, gas stations, etc., but only that employment supported directly or indirectly by travel and tourism. It may be necessary in applying an employment multiplier based on an input/output analysis to account for the effects of inflation. Sales revenue increases caused by inflation will not generate increased employment. Con- sequently, the sales revenue figures should be adjusted downward using the Consumer Price Index or the USTDC Travel Price Index to arrive at a revenue figure that is in terms of the dollar's value for the year the input/output model was developed. In other words, if a 1978 input/output study is used, 1980 travel sales revenues should be deflated to 1978 dollars before applying the employment multiplier. The same is not true of indirect effects of wages and salaries since these do tend to increase with inflation. A multiplier for wages and salaries can also be developed by analysis of the relationship between gross sales and wages/salaries paid for those business sectors that include travel related businesses. Again it is impor- tant that the relationship be to sales revenues so that the wage/salary impact can be estimated from travel sales revenues and thus accurately reflect the impact of travel and tourism. It is also important to remember that many tourism related jobs are entry level positions and part-time hourly jobs. This tends to produce a relatively low average yearly wage if total wages and salaries are divided by full-time equivalent persons employed. 3. Tax Impacts Tax impacts can best be derived from the sales measurements by applying the appropriate tax rates. For example, if there is a consumer sales tax at the state and/or city level, the tax rate can be applied to all of those expenditure categories from the impact measurement to which the sales tax is applicable. Similarly, business taxes, gasoline taxes and others can be determined using this procedure. Certain other taxes, such as corporate income taxes, personal income taxes, and others apply only to portions of the gross receipts. To find these, it is necessary to determine what portion of the sales in each sector is allocated on the average to, say, wages and salaries. One method fordoing this is the use of input/output tables, as discussed above. It is important that the measurement of taxes be carefully and reasonably defined so that they do measure real impacts at the level (s) of interest. One would assume that, for example, there will be great interest in state, county and city taxes, but that federal taxes are of interest only as a leak- age, i.e., a reduction to total impact. For local planners federal share may not be of interest. 58 Some other taxes such as local real estate taxes are only indirectly linked to tourism. Even such "pure" tourism businesses as hotels typically derive substantial parts of their total revenues from food and beverage sales to local residents, local meetings and banquets, space rental to retailers, parking space rental and other such activities. It will be difficult for analysts to decide whether real estate taxes paid in most instances can be directly attributed to tourism, and if so, what proportion. But if an alloca- tion formula is devised, say, on the basis of percent of sales to tourists, the actual total taxes paid generally are a matter of public record and can be easily obtained. The West Virginia Model Economic impact of tourism in West Virginia is measured by a system that was developed utilizing several of the measurement methods described earlier in this chapter. This section illustrates actual application of some of the methods available, as well as discussing problems encountered in data collection, sampling, and data analysis. The West Virginia Model incorporates: (1) a model of traveler expenditures as a function of lodgings choice and a model of lodgings choice as a function of trip purpose, both developed primarily by means of traveler surveys; (2) a lodging model based on an annual survey of private and publicly operated lodging places and campgrounds; and (3) a distributive model derived from secondary sources that pro- vides an estimate of the impact of day trips, visits with friends and relatives, and trips using other types of lodgings (sleeping in car, owned or rented vacation home) as a percentage of commercial lodging sales. Indirect impact, employment and tax receipts are derived from sales revenues using the input/output analysis and application of tax rates descr ibed earl ier. 1 . Traveler Surveys Traveler spending behavior, one of the inputs for the West Virginia economic impact model, was required in terms of travelers' lodging choice. This rather simplified approach ignores the fact that actual spending is a result of many factors, especially the purpose of trip, e.g., spending patterns for pleasure travelers as a group will differ from those of busi- ness travelers. The collection of statistically valid data on a purpose- of-visit basis for annual impact assessment was not practicable from a cost standpoint, but a weighted allocation of different classes of visitors (purposes) as a function of lodgings choice was derived from the National Travel Survey. Therefore, for the purposes of this study, it was of prime importance that all classes of travelers be sufficiently represented to 59 enable an estimate of average expenditures by class, but each class of traveler did not have to be surveyed in proportion to its representation in the population. Attitudinal and perceptual measurements were also desired, primarily for the pleasure travel segment of the market — sightseeing, outdoor recrea- tion, and enterta inment--because this is the best target segment for develop- ing new market growth. Thus, a test population specification that produced a comprehensive representation of the several sub-classes of pleasure traveler was desired. Sample Population . One accessible sample frame, which was expected to contain a strong representation of pleasure travelers, included those persons who had written to the Governor's Office of Community and Economic Development (GOECD) requesting tourist travel information (travel packets). An advantage of using this source was that their requests for literature suggested a higher than average interest in West Virginia travel, suggesting better response rates to mail questionnaires. Other advantages, besides accessibility, included a higher probability of having visited West Virginia (a better basis for attitude and perception measurements), and a basis for measuring the effectiveness, or conversion-to-visit ratio, of the state travel promotion literature. The above sample frame suffers from potential deficiencies, however. Perhaps the most important is the systematic error (bias) vis-a-vis the general travel market. Those who write in advance for information may well differ in their behavior, interests, and attitudes in regard to travel from those whose travel activities are more spontaneous. It also is intuitively reason- able that demographic characteristics, especially income and education, for the "travel pack" group will differ from those of the general market. Further, this group is known to have been exposed to the state's promotional litera- ture, and may therefore be biased toward more favorable evaluations. Finally, this population is likely to contain very low representation of some segments for which behavioral data are needed, e.g., business travelers. Whether these potential problems are important depends on several factors: 1) Is the unrepresented population important? 2) Is there a method of measuring the amount of bias? 3) What, if any, alternative sample frames are available, and do they offer any improvements? Selection of a Data Collection Method . Considering the relative strengths and weaknesses of the sampling and data collection procedures de- scribed above , the final decision was to employ a combination of mail surveys and personal interviews. This design configuration offered the strengths inherent in each, which, to a large degree, tend to be complementary; that is, the weaknesses in one design can be controlled or offset by the strengths in another. For example, the risk of a small sample size for certain cells in the matrix of lodgings choice versus purpose of visit with a mail survey can be controlled by a minimum quota for this class in the personal inter- views. The responses in those areas of comparable questions for like classes of respondents could also be used for cross verification of the two sets of data. 60 The Mail Questionnaire . This technique was implemented with a two- stage instrument. (Quest ionna i res are included in Appendix I.) In the first stage, a brief one-page questionnaire was sent to a sample of 2,000 households, selected randomly from the over 100,000 mailed requests for travel literature. The response rate, including one follow-up mailing, was 46.4 percent (928/2000). In the second stage, a deta i led quest ionna i re was sent to all out-of- state respondents who reported a visit to West Virginia on the first question- naire. Six pages in length, this questionnaire contained more detailed ques- tions about trip behavior, demographics, and a series of evaluative, atti- tudinal, and general behavioral questions. The second stage sub-sample contained 470 households and the response rate, with no follow-up, was 53.2 percent (250/470). Field Interviews . Over a period of eight months, in selected travel regions throughout the state, field interviews were conducted at tourist attractions, state parks, restaurants, national historical parks, hotels, motels, and campgrounds. While the actual respondents were selected on a convenience sampling basis, the interviewing team was instructed to take the necessary steps to assure that classes of respondents less likely to be covered by the mail survey, especially business travelers, were included in the sample. A total of 748 personal interviews were completed.^ 2. Lodging Business Survey The "lodging model," is used annually to project responses from a survey of lodging facilities (hotels, motels, resorts and state park cabins and lodges) and campgrounds (privately and publically owned) into a measure of total overnight space sales by class of lodging. It also serves as an input to the travel industry analysis and information system (TRAITS) which is discussed later. There are two versions of the lodging model: one for campgrounds and one for hotels and state-owned accommodations. Since they are very much alike, only the hotel/motel version is presented as an example. Input variables for each individual establishment are: U = number of units (rooms, cabins, etc.) Pi = average single rental rate ($) ?2 = average double rental rate ($) P3 = charge per additional person above two ($) = average occupancy rate {%) G = average party size, or number of guests per unit per night when a unit is occupied (person nights/unit nights) N = number of nights open for business per year S = percentage of out-of-state guests {%) 4 James M. Rovelstad, Behavior-Based Marketing Strategies for Travel and Tourism (Morgantown, West Virginia: Bureau of Business Research, West Virginia University, 1975), pp. 3~5. 61 All of the above are obtained from the lodging questionnaire, Figure 2, and are the types of information that businesses generally are willing to disclose. Preliminary investigation had shown a reluctance on the part of proprietors to disclose actual sales figures, even when the name of the business remained unidentified. With the use of the above variables, the annual revenue for each es- tablishment is calculated and total lodging revenue for the state is the sum of individual revenue estimates. The inventory of travel lodgings and similar facilities provided a complete file, or directory, of these businesses. Other sources were help- ful in determining rates and numbers of units, e.g., AAA directories, travel agents' guides. The principal items of data missing for non-responding businesses were those dealing with activity level, i.e., percentages for occupancy rates and out-of-state visitors, and the average number of guests per party. Estimates for non-responding units were obtained by applying the averages of these factors for the respective travel council regions in each case. Actual response rates range from kS to 100 percent, depending on sector. 3. Data Analysis The lodging model, using the annual survey data, calculates total revenue for commercial lodgings. The traveler expenditure model is then used to derive all other traveler spending, e.g., food, transportation, etc. based on spending in the lodgings sector. The distributive model estimates spending by travelers staying with friends and relatives or other non-commercial lodging, and the spending by day-trip travelers as a percentage of commercial lodging sales. Most of the initial measurements and analysis in West Virginia were accomplished through the use of standard computer software packages, mainly the Statistical Analysis System (SAS). Limited use also was made of another system, Statistical Package for the Social Science 5 (SPSS) , especially programming tabularized output. SAS is a good program for general statistical analysis and exploratory studies. But its very flexibility makes it less efficient, once a series of computations has been well defined arithmetically. Travel data analysis requires a number of simple subroutines with reports to be delivered after each series of operations. Many of these intermediate outputs also become inputs for the next and successive sequences of computations. With SAS there is a manual turnaround of data at each stage--a tedious process and one in which errors can be unknowingly introduced. Standardized, or general purpose, software package users also tend to have to compromise in format for data presentation. Such programs usually produce a pre-selected array of statistical computations, chosen to satisfy a wide variety of needs. For any specific report application, 62 Figure 2 SAMPLE LODGING QUESTIONNAIRE 1978 SURVEY OF WEST VIRGINIA TRAVELERS' ACCOMODATIONS INSTRUCTIONS: Please complete the following as indicated. The information requested is for the year January 1 - December 31, 1977. If specific numbers are requested, please provide them as accurately as possible; estimate if you have to but please do not leave blanks. Ignore the numbers in the column to the right; they are for tabulation purposes only. 1. 2. Name of County in which your facility is located. Please check (^) the category that best describes your business. Hotel Motel/Motor Hotel with restaurant Resort Hotel Motel/Motor Hotel without restaurant Tourist Court or Home Please check (^) any of the following that you provide for your guests. pool cocktail lounge Other meeting rooms (Specify) games area Which one of the following interstate highways is your facility closest to? (Check only one. ) I 64 I 70 I 77 I 81 US 48 Appalachian Corridor: US 19 US 50 I 79 US 460 7. 8. What is the distance from your facility to the nearest access point to that highway? Yes No Is your facility open all year? If NO, please check (•) the months when it is NOT OPEN Jan Feb Mar Apr July DO NOT WRITE IN THIS SPACE CD _ (2-3) (4) _ (5) _ (6-8) (9-10) (11-13) (14-15) (16-17) (18-37) (TO (1) (2) (7) (3) (3) (11) (8) (13) Aug Sept Oct _May Nov June Dec How many rooms or units did you have available for travelers in 1977? What was the average number of persons that occupied one room or unit? (Please estimate if necessary.) 9, 10. Please estimate the percentage of your guests that came from outside of West Virginia. How many room-nights* did you sell in 1977? (38-39) (40) (41-52) (9) (6) (6) (*0ne room-night equals one or more persons occupying one room or unit for one night. Thus, if one guest occupies a room for two nights, that would be two room-nights; but, if two or more people occupy the same room for one night, that would be only one room-night.) 11. What was your average occupancy rate for 1977? t 12. 13. (That is, what percent of your rooms were occupied on the average during the period of time that your facility was open. Please estimate if necessary.) For the first half of this year, 1978 , would you estimate the occupancy rate to be: lti „, .., i„„» u_.. u u;_i o » Higher than last year. How much higher? _About the same as last year. Lower than last year. How much lower? What were your 1977 room rates? (Please write in spaces below.) SINGLE: From $ (minimum) to $ DOUBLE: From $ (minimum) to $ (maximum) (maximum) FOR EACH ADDITIONAL PERSON: (53-54) (55-56) (57-59) (12) (60-62) (63) _ (4) (64) _ (5) (65-66) (14 -15) 1(67) _ (16; (77-80) You would probably like to see an increase in travel and tourism in your area because it would benefit your business. However, other businesses and residents in your area may have mixed feelings. More travelers would provide more tax revenues, jobs, and sales. But, it could also cause increased traffic congestion, customer theft or even rising prices. 14. In your opinion, what overall effect would residents of your area expect from an increase in travel and tourism in your community? 15. In your opinion, what overall effect would businesses in general in your area expect from an increase in travel and tourism in your community? Positive Effect Positive Effect No Effect No Effect Negative Effect Negative Effect In order to serve more travelers, it may be necessary for your business or other travel related businesses to expand. 16. Do you feel that the banks and financial institutions in your area are equally, more, or less willing to make loans to travel related businesses such as yours as they are to make loans to other types of business? s? More Willing Equally Willing Less Willing there is likely to be a large quantity of extraneous information provided, which is inefficient and also may be confusing to report users. In addition to simplifying information arrays for final users, better or more descriptive labeling of data than is provided for in research oriented software packages is usually desirable for management users of computerized reports. In this case many users are state government officials who may have little or no experience in reading computer printouts. Finally, a permanent reference file of West Virginia travel businesses, containing such information as room rates, number of units available, and season (s) of operation was needed. These data must be updated periodically, with appropriate additions and deletions of business units as new units are started and old ones expire. This process, too, is not a normal part of pre-packaged programs. All of the above comments apply to the decision to develop a custom- designed program for this application. It was possible to incorporate the SPSS package for some of the tabular reporting program. Thus, TRAITS (Travel Industry Analysis and Information System) is in fact a hybrid, con- sisting in large part of specialized routines for West Virginia travel data analysis and in part of the standard routines from SPSS. Table 7 is a sample of one of the types of tabular ized reports produced by the TRAITS program. A table is provided for each type of establishment (hotel, camp, park) in each of the travel councils and for the entire state. Further description of the TRAITS program is provided in Appendix II. Use of Economic Impact Information Some of the general uses of impact information were described briefly in Chapter IV. These may be classified in the following groups: (1 ) Planning and implementation --identification of markets and potential markets --benefit/cost and business forecasts --assessing results of development process — early identification of changes in traveler behavior (2) Promotion and public relations --gaining attention and support from government agencies and elected officials --gaining community business and resident support --attracting potential new travel industry entrepreneurs and investors (3) Basis for credibility --obtaining debt capital from lending institutions --obtaining grants from regional, state and federal agencies — gaining support for improvement/development of public infrastructure — influencing legislation favorable to travel industry operations 6k Table 7 SAMPLE TRAITS REPORT West Virginia Travel Industry Quarterly Regional Summary Lodging Entire State Second Quarter, 2001 This Last 1 Year Cumulative Period Period Ago Average (1) Occupancy Rate 73% 77% 76% 66% Average Guests Per Unit 1.55 1.23 1.^3 1.01 Revenue (thousands) $98,765 $87,654 $76,5^3 $65,^32 Out of State 98% 97% 96% 95% Average Room Rate $ 55.00 $ 5^.00 $ 53.00 $ 52.00 Person Nights 98,765 87,65^ 76,5^3 65,^32 (1) Calculated for 27 samples. Source: Rovelstad, James M. , Behavior Based Marketing Strategies for Travel and Tourism. 65 Information will be organized and presented in different forms and levels of detail for each of these uses. Figure 3 is an example of a presen- tation included in an eight page color brochure summarizing the annual measure- ment in West Virginia and designed primarily to serve the third category-- especially with the state legislators. The brochure also serves secondarily as a promotion and public relations piece. But more impact is gained by selecting specific figures such as total sales, employment or taxes collected and using these in press releases or documented interviews. It is important in communicating the desired message that the major points don't become lost among too many less directly meaningful bits of information. This point will be discussed more fully in Chapter XI . Much greater detail is needed, however, for formulation of development plans. Tables 8 and 9 show some of the results of the traveler behavior surveys described earlier in this chapter. This information is used both as an input to the impact measurement model, and to analyze specific kinds of tourism related investment possibilities in communities around the state. Summary This chapter has provided guidance as to the rationale for, methods for obtaining, and ways of using measurements of the economic impact of tourism in an area. Community developers will have to add to and interpret this information to meet their own situation and needs, but this chapter should serve as both a general orientation and a starting point. Many of the agencies, organizations, and individuals referred to in the text and footnotes would be good sources of guidance in seeking the professional assistance recommended. Other public and non-profit sources include: Bureau of Business Research Armstrong Hal 1 West Virginia University Morgan town, WV 26506 Business Research Division University of Colorado Campus Box 420 Boulder, CO 80309 Department of Tourism and Travel Administration Graduate School of Management S Urban Professions The New School for Social Research 66 Fifth Avenue New York, NY 10011 66 The Travel Research Association P.O. Box 8066 Foothill Section Salt Lake City, UT 84108 University of Hawaii Library Serials Division Honolulu, HI 96822 67 Figure 3 WEST VIRGINIA ECONOMIC IMPACT REPORT Travel Council Regions Total Travel Sales 1977 Upper Ohio Valley Eastern Gateway Country Roads Potomac Highlands Mountainaire Nine Valley Travel Council Area Sales, Employment and Wages and Salaries Travel Council Total Sales Employment Wages and Salaries (Million $) (Million $) Country Roads 42.3 2,247 11.5 Eastern Gateway 52.1 2,772 11.5 Mountainaire 192.8 10,251 52.6 Mountaineer Country 90.2 4,798 24.6 Nine Valley 209.7 11,153 57.2 Potomac Highland 77.9 4,144 21.3 Upper Ohio 49.8 2,649 13.6 State Total* 715.0 38,017 195.0 "Totals may not add due to round ng. Sales Travel Sales by County County (Million $) Barbour 3.2 Jackson and Pleasants 1.1 Berkeley 30.1 Roane 6.7 Pocahontas 9.8 Boone 1.4 Jefferson 15.1 Preston 3.6 Braxton 6.3 Kanawha and Putnam 4.3 Brooke 5.1 Clay 127.0 Raleigh 32.9 Cabell 51.2 Lewis 2.3 Randolph 25.0 Calhoun .8 Lincoln .1 Ritchie 2.9 Clay- Logan 8.8 Roane— see Kanawha McDowell 4.1 see Jackson Doddridge— Marion 12.5 Summers 13.3 see Harrison Marshall 4.3 Taylor 4.9 Fayette 8.1 Mason 6.2 Tucker 17.2 Gilmer .8 Mercer 41.1 Tyler 1.5 Grant 4.6 Mineral 3.3 Upshur 10.6 Greenbrier 84.0 Mingo 7.5 Wayne 3.2 Hampshire 9.7 Monongalia 32.3 Webster 2.0 Hancock 7.5 Monroe .3 Wetzel 4.3 Hardy 1.4 Morgan 6.9 Wirt and Harrison and Nicholas 5.1 Wood 22.0 Doddridge 20.8 Ohio Pendleton 28.6 4.7 Wyoming 3.9 68 Spending Category Lodging Food Transportation Recreation Gifts Othor Totals Table 8 WEST VIRGINIA TRAVELER SPENDING PER PARTY-DAY AS A FUNCTION OF LODGINGS CHOICE - 1974 Commercial Establishments $21.19 18.47 8.01 4.66 6.17 308 $61.58 State Park (lodge /cabin) $21.88 22.14 6.52 7.75 3.92 .41 $62.62 Lodgings Choice Camping 3.63 7.58 5.84 4.08 5.33 $26.46 Friends or Relatives $ 6.73 5.44 3.45 10.94 1.09 $27.65 Other 6.22 8.79 6.67 8.13 4.38 1.39 $35.58 Not Overnight* 7.03 3.94 7.18 4.84 .27 $23.26 Source: Rovelstad, J.M. , Behavior Based Marketing Strategies for Travel and Tourism, Table 9 AVERAGE EXPENDITURES PER PERSON-DAY FOR WEST VIRGINIA TRAVELERS - 1974 BY LODGINGS CHOICE Spending Category Expenditures By Lodgings Choice, 1 974 State Commercial Park / Forest Friends or Not Establishments Lodge/ Cabins Camping Relatives Other Overnight $ 8.76 $ 7.79 $ .99 — — — $ 1.96 N.A. 7.63 7 89 2.08 $2.24 2.77 $2.75 3.31 2.32 1.60 1.81 2.10 1.54 .44 2.76 1.12 1.15 2.56 2.80 3.82 1.54 1.46 4.01 1.82 2.00 Lodging Food Transportation Recreation or Entertainment Gifts, Incidentals and Other Totals $25.45 $22.36 $7.25 $9.22 $1 1.22 $9.09 Source: Rovelstad, J.M. , Behavior Based Marketing Strategies for Travel and Tourism, 69 Chapter VI I MEASUREMENT OF COMMUNITY AND HUMAN RESOURCES Relationships Between Community Residents and Tourism The community's residents are at the same time the primary beneficiaries of tourism development, the essential component for implementing tourism development, and a critical part of the tourism product. Clearly the success- ful initiation and implementation of any form of economic development requires support from the community's residents, be it through changes in zoning laws or taxation levels, to provide necessary infrastructure, through willingness to apply their talents to newly created jobs, or through their hospitable reception of visitors to the community. Gaining the support of the communi ty ' s residents for tourism development requires understanding of the relationships between community residents and the tourism industry and product. Tourism development impacts on community residents in a wide variety of ways. The economic benefits to be derived are obscured not only by the industry's fragmentation but also by the more obvious side effects seen in "tourist towns" — crowds of strangers, littered streets, souvenir hawkers, parking and traffic problems. All of these potential effects of increased tourism development have to be recognized and balanced against potential growth in retail sales, employment opportunities, increased tax revenues and similar economic benefits to the community and its residents. Community residents, and their leaders also, may question the wisdom of attempting tourism development if they are unsure of what their community has to offer a visitor. The community's hospitality is part of the tourism product and thus the residents become both the product and its best sales team. The manner in which a visitor is given directions to a point of in- terest reflects on the product — the community and its attract ions--as well as on the individual community representative providing the information. Lack of awareness on the part of residents as to what to see or do in their town suggests to the visitor that the town has little to offer, or is indifferent to travelers' needs. In addition to the relationships which all of the community's residents are likely to have with tourists and tourism development, some of the resi- dents will be employed in the newly developing tourism businesses. The level of skills and availability of a labor force, and the interest of community residents in such employment opportunities must be assessed before tourism development is undertaken. These three relat ionsh ips--the resident as community member impacted by tourism, the resident as emissary of the community and part of the pro- duct, and the resident as potential employer/employee in a tourism business — make measurement of the community and human resources an essential aspect of planning for tourism development. 70 Implications for Development Community developers will want to obtain information on resident attitudes, knowledge of and expectations regarding the impact of tourism, and the availability ot a potential tourism labor force. This information serves several vital needs for the developer/planner: (1) Determination of the probable support, or resistance, likely to be encountered if development is undertaken. (2) Identification of the areas and issues which will have to be addressed in publicity and public relations programs as the planning and development process gets underway. (3) Identification of the numbers and types of persons most 1 ikely to be interested in and need the jobs created through development. (k) Provision of a basis for a community awareness/communication program so that residents are more knowledgeable of their products and better able to project themselves and the community to the tourist. Measuring the Human Environment for Development Measurement of the human environment for development focuses on three areas of inquiry: (1) Attitudes toward tourism development as expressed through opinions regarding the expected effects of increased tourism or the consequences of a loss of all tourism. (2) The community's cognitive level of awareness of itself and features that might be attractions for tourists. (3) Interest in and attitudes toward potential personal employment in tourism related businesses, the level of skills and availability of a potential tourism labor force in the commun i ty . Even though community developers may have an intuitive concept of their community's general attitudes, a survey of residents will serve to pinpoint specific concerns or population groups with differing attitudes. Such in- formation allows the developer to save time and effort in the long run since the design and implementation of the development strategy can be responsive to identified concerns. The following sections detail the process for planning and implementing a survey of residents. Since not all aspects of designing and implementing a survey can be adequately covered in a manual of this size, it is recommended that the planner/developer consult one of the following references or obtain the services of a research professional, possibly from a local college or university, for further information: 71 David J. Luck, Hugh G. Wales, Donald A. Taylor and Ronald S. Rubin, Marketing Research , 5th ed. (Englewood Cliffs, New Jersey: Prentice- Hall, Inc., 1978), pp. 192-300. Gilbert A. Churchill, Jr., Marketing Research: Methodological Foundations (Hinsdale, Illinois: The Dryden Press, 1976), pp. 158- 195, 241-3^. 1. Selection of Survey Method A telephone survey is recommended rather than a ma i 1 survey or personal interviews. Telephone surveys generally elicit a higher response rate than mail surveys and are less biased by selective response, such as the tendancy for professionals to have a higher response rate to mail questionnaires than other groups. A telephone survey also allows for clarification of questions and sensitive questions may be handled in a manner appropriate to a particular interviewee in order to elicit a response. The telephone survey provides the interviewee a greater sense of privacy than does a personal interview and thus there is a greater willingness to respond honestly and completely. Transportation costs, interviewer bias, training and data collection time and costs are all lower for a telephone survey than for personal interviews. 2. Sampl ing Procedure The sample of residents surveyed will ideally be both representative of the community and drawn in such a manner as to allow statistical analysis of the results. A number of sampling techniques are available to assure a representative selection of respondents within the population segments identified as appropriate. Among the most frequently used techniques is the systematic sample drawn from the area telephone directory. Based on the number of completed interviews desired and the estimated total telephone listings, an interval (n) is selected (e.g., every 15th listing). A random number should be used to determine the first listing drawn, and from that start each nth name is drawn. The geographical area can probably be segmented on the basis of tele- phone prefix. It is important that all of the rural areas or smaller communities surrounding the central city are represented adequately in the final sample. A sample of each area proportionate to its relative population is desirable; however, some sparsely populated areas may have to be sampled in a higher than proportionate number in order to have a representative sample of that area's residents. In locations not differentiated by telephone prefix, prospective respon- dents may be identified by street and address number. Local utility companies may be able to provide assistance through their records. Depending on specific objectives, 500 to 1000 completed interviews probably will be adequate. However, the desire to examine a large number 72 of segments (or groups) within the population, or to obtain answers to specific questions with more than usual accuracy may increase this sample size. Further, allowance must be made for non-response, i.e., a percentage of the original sample that will not be reached, refuse to cooperate, or give obviously erroneous answers. This percentage will vary from community to community, with local conditions at the time of the survey, and even with the time of the year, e.g., in the summer period many families may be away on vacation. Experience indicates that allowance should be made for at least 50 percent non-response. Thus, an original sample of 2,000 would have to be drawn from the telephone book to assure 1,000 completed interviews. 3. Design of the Questionnaire The questionnaire used in the demonstration project (Appendix l) included an information sheet, a brief introduction, and three sets of related ques- tions. The information sheet includes the family name of the residence to be called, the telephone number and address, the time and date the interview is conducted, and a zone number which represents the location of the household within the community. (A zone may be assigned for each town in the county or for differing rural/urban parts of the community, depending on the makeup of the community region being surveyed.) The introduction is read by the interviewer to familiarize the inter- viewee with the purpose of the questionnaire and identify the interviewer with a legitimate group or concern. Once the prospective interviewee consents to the interview, each question is read in turn by the interviewer and the responses are recorded. The questionnaire was designed for simultaneous recording of responses and coding for computerized analysis. Each response is either numerical (number of years residence in the county) or pre-coded with a number, and the appropriate number is recorded in the coding block to the right. These numbers may then be keypunched directly from the questionnaire without a separate coding step. It is recommended that at least spot checking be done to assure accuracy of the coding as the surveying progresses. The survey data could be hand tabulated, if necessary, but a computer will save sub- stantially on time, provide greater assurance of accuracy, and permit more extensive analysis of the results. The questions are arranged in three groups. The first set of questions (Quest ions 1 -5) is designed to measure the respondents' awareness of tourist attractions in their area and respondents' perceptions of the effects of tourism on various aspects of their community life. The second set of ques- tions (Questions 6-13) is designed to determine the level of interest in the potential tourism labor market, and to gauge the willingness of the respondents to enter jobs in tourist related businesses. The third group of questions are demographic and socio-economic questions. Design considerations and the purposes of some of the individual questions are detailed in the following sections. 73 Questions to Assess the Effects of Tourism on Community Life . The first question of this set lists fifteen major dimensions of community and in- dividual activity which are potentially affected by tourism and asks how each might be affected by tourism. The fourth question then seeks the re- spondent's judgement of the overall effect of tourism on their community. The fifth question also addresses the question of effects by asking how serious a loss of all tourism would be to the community. Somewhat more specific is the third question which inquires about the community's attitudes toward foreign visitors. More accurate responses were expected by asking how the commun i ty views foreign travelers as opposed to "How accepting are you of foreign travelers?" This protects the interviewees from potentially showing themselves in a socially unacceptable position by answering negatively. The second question seeks to identify those activities which the respon- dents believe would draw tourists to their community. This question is the primary measure of the level of resident awareness of the attractions in their community. The list of attractions should be made up by the development organization based on their own community and should include both specific attractions by name and general categories of attractions (e.g., natural resources or scenery) to facilitate coding actual responses. The resulting information is useful to businesses in investment and expansion decisions and as input to the tourism development and public relations program. Questions to Assess the Travel Industry as an Employer . The purpose of these eight questions (#6-13) is to define the attractiveness of jobs that would be created by an expanding travel and tourism industry. The occupational categories used in questions 6 and 7 are the Bureau of the Census 1 occupation classification used in the 1970 census. Student, no occupation and other were included to provide a complete list of possible respondent answers. The fourteen major tourist oriented businesses used in questions 8 and 9 were condensed from a list of selected related businesses^ drawn from the Standard Industrial Code. The responses to the questions related to most desirable and least de- sirable travel industry employers will identify those businesses likely to find the most favorable hiring conditions and those which could have employ- ment problems in the face of increasing tourism. In the demonstration project, the category of land, wildlife and forest administration agencies was found to be the most desirable travel related business employer. Travel agencies and recreational and sports services were chosen as the second and third most desirable travel related business employers. 'Douglas C. Frechtling, "Proposed Standard Def in i tions and Classif icat ions for Travel Research," Proceedings of the Travel Research Association (Boca Raton, Florida, June 1 976 ) . lh Interviewees were asked to give two reasons for the desirability of their choice of travel related business and two reasons for the unattract i ve- ness of the business identified as an undesirable employer. Physical work setting and human work setting were the two most frequently mentioned factors for both desirable and undesirable travel related employers. Knowing why a particular business is viewed as desirable or undesirable allows the em- ployers to emphasize positive factors or compensate for unfavorable factors when trying to interest the work force in employment in their businesses. Questions to Assess Demographic and Socio-Economic Characteristics of Respondents . The questions within the demographic section were carefully arranged by sensitivity. The higher the sensitivity, or the possibility of the interviewee finding the question uncomfortable, the later it was asked in the questionnaire. Thus, the more sensitive questions dealing with race, religion, marital status, and the like are placed at the end after the more crucial questions have been asked. The number of years residents have lived in the community, their marital status, the age of their children living at home, and their home ownership are believed to have an effect on the degree and nature of the respondents' interest in the community. The five year intervals used for coding the number of years lived in the county are designed for statistical and practical purposes. The number of years in each interval must be the same for accurate statistical analysis. This requirement, along with the need for an interval which would be useful in interpretation, lead to the five year grouping. An identical approach was used in determining age and income categories, and lead to ten year and $5,000 intervals, respectively. The series of questions related to employment status (Questions 16, 17, 19, 20, 21), and the number of people working in the household aids in the definition of the potential manpower pool for incoming travel and tourism businesses. Strong attitudinal subgroups may be identified through an analysis of demographic and socio-economic variables, e.g., education, religion, race, age, sex, financial situation, and income. For example, it is of interest to know if a relationship exists between income (or any other characteristic) and views of the impact of tourism on community life. Such correlations, if found, are important for predicting community responses to changes in tourism pol icy. 4. Training and Interviewers Interviewers will need training in the techniques of telephone surveys unless they are already experienced. Since available part time employees, such as students, seldom have such training, it may be advisable to enlist the assistance of a community member whose professional position includes personnel training and/or telephone surveying. For example, the local tele- phone company may be able to provide assistance with programs used in training telephone operators. 75 A general training session would include such things as proper identifi- cation by the interviewer; how to answer questions such as "Who's going to find out my answers?" or "How did you get my name?"; how to take "no" for an answer. This general session will prepare the interviewers for the pre- test, which in turn can be used to determine areas where additional training is needed. A more specific training session will be needed to discuss the quesion- naire and this session is best conducted by the person supervising the survey. The purpose of this session is to familiarize the interviewers with the questionnaire, explain the coding methods and the objectives of specific questions. Suggested methods of handling problems, particularly those found in the pre-test, or for re-stating questions for clarification purposes should be provided at this session. Written instructions for the interviewer will probably be needed to supplement the training sessions. A self contained guideline was used in the demonstration project and is appended with the questionnaire in Appendix I. Such an instruction sheet provides a quick reference on how to complete the information portion of the questionnaire and code the responses. Direct supervision will be needed during the actual interview process, and for review of the completed questionnaires for incomplete responses, coding errors or oversights. This is particularly important at the outset of the surveying, but should be done periodically throughout the survey per iod. Errors corrected early will avoid serious problems later in analysis and interpretation of the results. 5. Pre-Test of the Questionnaire Much of the questionnaire used in the demonstration project may be used without any change if so desired. However, some of the questions will have to be rewritten to reflect the specific attributes of the community to be surveyed. Furthermore, regional differences may suggest changes in wordinq or phraseology to avoid confusion on the part of the respondent. Consequently, a pre-test of the survey instrument should be conducted prior to the actual survey. The pre-test should simulate as closely as possible the actual expected survey conditions but will require a much smaller sample (say 20 persons). Pretesting the questionnaire exactly as it will be used, with a sample re- presentative of the population to be surveyed, will allow identification and correction of unclear, ambiguous questions, design or coding difficulties, and interviewer errors. Survey questions may have to be redesigned to avoid responses which are inadequate or provide insufficient data for analysis. At least three weeks should be allowed for such revision, and for duplication of the questionnaire prior to the actual survey. The interviewers conducting the pre-test need to be familiar with the goals of the survey so they can be alert to misunderstandings or hesitancy of response that might void the response. It is preferable, however, that 76 the interviewers not be too familiar with the questionnaire itself at the time of the pre-test, so that their problems in interpreting directions or reading the questions can also be identified. Ideally the person supervising the survey will be able to observe the interviewer's side of the test calls to be sure the interviewers can and do follow the directions to provide a fair test of the questionnaire. Need for further training of the interviewers can also be identified. Tabulating and Analyzing the Information The first step in analysis is tabulation of the responses. Tabulation can be done utilizing standard computer software packages, such as SAS, or it may be done by hand if the sample size and number of variables are fairly small. A brief description of the SAS program used for analysis of this survey data is included in Appendix II. Simple tabulation, a count of the number of cases that fall into various categories, should be the first step for several reasons. First, it allows identification of incorrectly coded or erroneous responses. For example, if a coding of responses used numerals 1 through k, as in the first question, a frequency distribution of the responses that included a zero or 5 would indicate an erroneous response. The second reason for a simple tabulation or frequency is to examine the range and distribution of responses. Calculation of the percentage of responses in a given category can then be done from the distribution to allow summarization of the findings. For example, Table 10 is a frequency table of responses to the fourth question regarding the overall effect of in- creased tourism. Clearly, the largest category of response was "positive" with ^82 responses, or 59 percent of the respondents. Looking at the cumula- tive percentages it becomes obvious that over two thirds (68 percent) of the respondents felt the effect would be "positive" or "very positive." Less than 11 percent of the respondents answered that the overall effect would be "negative" or "very negative," and the remaining 22 percent responded that there would be no effect. The findings suggest that the promotion of the travel and tourism industry in the region would be viewed as a positive action by the majority of the residents. A third use of simple tabulation is to identify categories which may have an insufficient number of responses for further statistical analysis. In that event, categories would have to be combined or collapsed. Using the same example, three categories, positive, neutral, and negative, could be created by combining "very positive" with "positive" and "very negative" with "negative." In some cases, it may be desirable to manipulate the actual responses prior to tabulation. The individual scores for each item in Question 1 were summed to calculate a "favorab i 1 i ty score" reflecting the overall effect of tourism perceived by the respondent. Table 11 is a frequency tabulation for the summated favorability scores. The lower scores reflect more positive expectations. (The individual responses were rated 1 = positive effect, 2 = no effect and 3 = bad effect.) A favorability score of 30 for the 15 77 Table 10 RESIDENT ATTITUDES ON OVERALL EFFECT OF AN INCREASE IN TOURISM ON THE COMMUNITY Number of Cumulative Percent Cumulative Type of Effect Responses Responses of Total Percent Very Positive lh Ik 8.991 8.991 Positive 482 556 58.566 67.558 No Effect 179 735 21.750 89.307 Negative 81 816 9.842 99.1^9 Very Negative 7 823 0.851 100.000 No Usable Response 16 -- — — 78 Table 11 FAV0RABIL1TY OF EXPECTED EFFECTS OF INCREASED TOURISM AS PERCEIVED BY COMMUNITY RESIDENTS Score of Number Cumulative Percent of Cumulative Favorabi 1 i ty* of Responses Responses Total Responses Percent 15 5 5 1.000 1.000 16 7 12 1.400 2.400 More 17 15 27 3.000 5.400 Favorable 18 14 41 2.800 8.200 Responses 19 35 76 7.000 15-200 20 34 110 6.800 22.000 21 55 165 11.000 33.000 22 52 217 10.400 43.400 23 56 273 1 1 . 200 54.600 24 60 333 12.000 66.600 25 43 376 8.600 75.200 26 34 410 6.800 82.000 Less 27 19 429 3.800 85.800 Favorable 28 25 454 5.000 90.800 Responses 29 14 468 2.800 93.600 30 5 473 1.000 94.600 31 9 482 1.800 96.400 32 3 485 0.600 97.000 33 9 494 1.800 98.800 34 2 496 0.400 99.200 35 1 497 0.200 99.400 38 1 498 0.200 99.600 39 1 499 0.200 99.800 4o 1 500 0.200 100.000 No Usable 339 Response *The "favorabi 1 ity" score was calculated by summing individual scores reflecting the effects of tourism. The total score ranges from 15 to 40, the lower scores indicating more positive attitude towards the effects of tourism and higher scores indicating less positive responses. 79 items would indicate an equal number of positive and negative responses. On that basis, Table 11 shows that 94.6 percent of the respondents perceived essentially positive effects on the community (had favorability scores of 30 or less) from an increase in travel and tourism. Table 11 is also divided into two categories, "more favorable responses" and "less favorable responses." This was done by dividing the responses into roughly equal groups, with 54.6 percent in the "more favorable" group and the remainder in the "less favorable" group. This grouping of responses can then be used for additional analysis, as described below. Cross tabulation allows the study of relationships among and between groups. Cross classification is normally shown in a matrix form where each block or "cell" represents the intersection of a row variable and a column variable. For example, the same question on the perceived effects of increasing tourism can be analyzed from the perspective of the respondents' sex, as shown in Table 12. The number count in each cell is the absolute value of the observed data and is shown with the percentage of the total responses which are included in the cell. Therefore, from the table, it can be seen that the 161 "females" in the category "more favorable" comprise 32.5 percent of the responses to the question regarding the perceived effects of tourism. Table 12 RELATIONSHIP OF PERCEIVED EFFECTS OF TOURISM TO SEX OF THE RESPONDENT Sex Perceived Effects of Tourism Male Female Total More Favorable Less Favorable Total 161 (32.5%) 111 (22.4%) 272 (54.9%) 151 (30.5%) 72 (14.5%) 223 (45.1%) 312 (63.0%) 183 (36.9%) 495 (100.0%) A still better understanding of the responses can be achieved by deter- mining if a statistically significant relationship exists between the two variables of sex and perceived effect. Specifically, it is important to test for a statistically significant difference between groups (male and female) with respect to particular characteristics ("more favorable" and "less favorable" perceived effects of tourism.) The answer will indicate whether males are more or less favorable in their perceptions of the effects of tourism than are females, assuming that any difference can be found. An appropriate statistical technique in this situation is the Chi-Square (X 2 ) test. 2 2 The two sources cited earlier, Luck et al. and Churchill, or any standard statistical text can be consulted for further explanation on the use of the Chi-Square test. 80 Briefly, a Chi-Square test is based on the hypothesis that the variables being studied are independent of one another. Based on the frequency of response in each cell, an observed value for X 2 is compared to values found in a standard X table. The appropriate table value is determined by degrees of freedom (DF) , which is related to the number of rows and columns, and by the chosen level of significance. The level of significance used for this analysis of the survey results was .05, indicating that there could be no more than 5 percent probability that the results occurred by chance. If the calculated X 2 value is greater than the table value, the assumption of independence is rejected, indicating that there is in fact a statistically significant relationship between the two va r i a b 1 e s . Table 13 summarizes the results of the Chi-Square tests of the effects of tourism and the demographic variables. Only two demographic variables were statistically significant, sex and occupational status. For example, the X 2 value in a standard table for .05 level of significance with 5 degrees of freedom is 11.070. The calculated X 2 value for occupational status, again at the .05 level of significance and with 5 degrees of freedom, is 15.578. Since the calculated value is greater than the table value, there is a statistically significant relationship between respondents' employment status and their perceptions of the effects of increased tourism. Simply identifying a statistically significant relationship is not enough, however. The relationship must make sense and have some implication for the tourism development plan. The direction of the relationship must first be known. In this case, examination of the Chi-Square matrices revealed that males expected more positive effects than females, and that retired persons and students were the occupational groups with more positive expecta- tions, while unemployed persons were more likely to expect negative effects. Interpretation Interpretation of the survey findings is perhaps the most important and the least readily defined aspect of the analysis of the community and human resources. The survey findings must be interpreted in terms of the community itself and the overall objectives of the developmental effort. Continuing the earlier example,' sex and employment status were signif- icantly related to perceived effects of tourism. Males anticipated more positive effects than females. This may reflect differing experiences with tourism or a greater awareness on the part of the male population of the economic effects of any developmental effort, including tourism. In any event, it suggests that perhaps greater attention in public awareness campaigns should be directed toward the female population. The next step in this analysis would then be to examine only responses by females to the specific effects question (Question 1) to determine what specific negative effects were most frequently mentioned. Then presentations, press releases 81 a Table 13 PERCEIVED EFFECTS OF TOURISM AS RELATED TO DEMOGRAPHIC CHARACTERISTICS OF COMMUNITY RESIDENTS Effects of Tourism on the Community Demographics Time Surveyed Occupation Years in Community Area (urban/outskirts/rural) Telephone Zone Employment Status Marital Status Number of Children Re 1 i g i on Age Education Sex Rent/Own Residence Income Chi -Square DF Probabi 1 i ty 14.256 11 0.2191 4.934 10 0.8956 1.162 2 0.5593 3.007 2 0.2224 11.662 11 0.3859 15.518 5 0.0084*** 0.284 1 0.5944 1.33^ 2 0.5134 3.930 3 0.2691 2.705 6 0.8448 9.047 5 0.1072* 3.819 1 0.0507** 0.757 2 0.6848 5.438 5 0.3648 * p < .10 ** p <_ .05 *** p < .01 82 or other information distribution can be concentrated onal laying those fears of negative impacts and emphasizing those areas where positive benefits are expected. With respect to employment status, the positive expectations of students and retired persons could be used in implementing the plan. Clearly in this case these two groups would be good prospects for volunteer efforts needed to promote and publicize the travel development program. One need in the demonstration area was for persons to staff historic homes or institu- tions so that they could be open to the public at convenient times. The identification of these positive expectations regarding tourism should en- courage the developer to approach these groups for their help in staffing such potential tourism facilities. The negative expectations among the unemployed group should not be overlooked. It would be particularly important to convince this group that tourism development could directly benefit them by providing new job oppor- tunities. Their attitudes toward employment in the tourism industry should be examined by breaking out the responses by the unemployed respondents to the questions related to desired jobs, desirable tourism businesses, and so on. This information can then be used in the development of an appropriate strategy to utilize the unemployed in the tourism development effort and to benefit this group. The severity of unemployment in the region and the representativeness of the survey respondents of all unemployed must also be considered. In this case, the number of unemployed persons surveyed was relatively low compared to the proportion of unemployed in the region. If unemployment were a severe problem, additional data collection from among this group might be advised. For the demonstration region at the time of the survey, such additional data collection was not deemed necessary. Interpretation of the results should return to the three primary areas of concern: (1) What is the community's attitude toward tourism development, and are there groups which have differing attitudes? (2) What is the community's cognitive level of awareness of itself as a tourist destination, and are some groups within the community more or less aware of its tourist features? (3) What is the level of interest in and attitudes toward employment in tourist businesses, which groups have differing levels of interest, and which businesses are considered most desirable? For each general area, the question then becomes "Why?". Can the findings be explained and understood in terms of the community, its population, political or economic changes? Can negative expectations, for example, be interpreted as stemming from a lack of knowledge or a stereotyped image of the results of tourism, or have recent economic failures resulted in 83 generalized negative attitudes toward any new development? These questions can only be answered in light of the existing conditions. Analysis of survey data suggests avenues of interpretation. Expected positive effects of tourism may be broadly general izable to the population as a whole, as in this case, or may be concentrated in one segment of the population. Expected negative effects may be focused on two or three possible effects, such as increased crime, traffic problems and rising prices, or may incorporate all aspects of the community's affairs. As the example cited pointed out, the interpretation of the results must make sense in terms of the community and the interpretation should lead directly to use of the findings in the development plan. Using the Information in a Development Plan The survey findings and interpretations will determine various aspects of the development plan. The important point is not to ignore what has been found. Whatever the findings, they must form the basis on which aspects of the plan are designed. Another example from the demonstration project should serve to illustrate the point. An extremely low level of awareness of tourist attractions in the area was found through the survey. The respondents lacked either know- ledge of, or confidence in, their community's attractiveness as a travel destination. This finding suggested the need for a sizeable "community awareness" program. From this need, a comprehensive public relations program was developed. A column which described a different local or regional attraction each week was first initiated in the major city's newspaper, and later expanded to several outlying area weekly papers. Speakers were made available to local service organizations and clubs for their meetings. A slide presentation of local attractions was prepared for such presentations. Local television and radio stations made time available through their public service pro- gramming to discuss the tourist attractions and potential in the area. The variety of activities available in the community was emphasized. This public awareness program was important not solely because the community had such a low level of awareness. Another aspect of the study, the identification of the present traveler to the region, revealed a high percentage of travelers who came to the area to visit friends and relatives. These friends and relatives, the community's residents, would have to be aware of their local tourist attractions if the visitors were to be directed or taken to them. It should be noted also that the lack of awareness was broad based rather than related to any one or several identifiable groups. Had there been specific segments of the population that had a low level of awareness and other groups with a distinctly higher level of awareness, the community awareness strategy would have been more focused on the low awareness groups. A more limited selection of groups to be contacted for personal appearance, 8k specific focus on the timing and/or format of radio and television use, or more concentrated efforts on city vs. rural groups might be required to reach the particular group identified as having the lowest level of awareness. Using the data in the development plan in all likelihood will require not only being able to interpret what was found, but also the ability to present the findings to other groups of influential leaders. While cross tabulation and Chi-Square matrices are valuable in identifying the important relationships, other means of presenting the data will probably be needed for presentations to the development group or community members. The bar graph in Figure h depicts visually the responses to the first question regarding the expected effects of tourism growth on various aspects of community life. The percent of responses is shown on the vertical axis and each aspect of community life included in the question is listed along the horizontal axis. From the graph it can be seen that almost 90 percent of the respondents expected a positive effect on the quality of local busi- nesses, approximately 75 percent expected a positive effect on government tax support; and 80 percent expected a positive effect on cultural develop- ment and on attitudes toward the state. Looking at the perceived negative effects, only traffic congestion/parking problems and prices stand out as having a higher percentage of respondents who expected negative effects than expected positive or neutral effects. Such a graph emphasizes the generally positive expectations of the respondents. Depending on the type of presentation to be made, and the resources available, such a chart would be most effective using three colors to differentiate among the positive, neutral and negative bars, and could be made up as a board chart or a slide. The important point is to use the survey data — in designing the tourism development plan and in selling that plan . 85 CO CO CC LU 3 Q O — h- co LU O C£L LU to >- < 1- -3- LU — CC Z (U O ID 1- z z: D — x cr o • — Li. O u. O >- CO CD h- o o LU LU Lu > Ll. — LU LU O lu a: \- o. q_ - O I- < Q. CO 2: OO — — < to o ^ o CQ _l >- CO - zj 00 q: ot co 1— — LU CO u- z zo LU o a: 2 < — > < — aZ < CC LU < X a. h- O o m E • . CO TO L. CO C i— h- a> C TO LO O O O TO OO r»» Lf\ CM O L- CM -j- CM co »- • CM • CM • w c 1 1 1 j ,__ to *^^ *^** *-«• a) 2 c ' O •— (U TO 1_ c u ■M CM — I- (/> ^_ 1 x> 3 E - M- O L. 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C ■a a) X .— ui a) o a. 106 p>. c\ CO OO cr> r^ crv co Id K l- CM CM I Table 18 RELATIONSHIP OF THE NATURE OF PRODUCTS AND SERVICES TO BUSINESS PERCEPTIONS Travel or Non-Travel Related Businesses Perceptions Acceptance of Tourism Action for Tourism Cooperate to Encourage Tourism Provide Services to Travelers Promote Travelers' Interest Awareness of Tourism Amount of Traveler Expenditures Employment in Travel -Related Businesses Payroll of Travel -Related Businesses Defined by Nature of Products/Services Chi-Square £F Probabi 1 ity 19.226 2 0.0001*** 12.066 2 0.0024*** 12.046 2 0.0024*** 17.576 2 0.0002*** 5.750 2 0.0564* 0.036 2 0.9823 0.523 2 0.7698 0.839 1 0.3596 2.651 2 0.2656 ** * p < .10 * p < .05 p < .01 107 Table 19 RELATIONSHIP OF THE VOLUME OF TRAVEL SALES TO BUSINESS PERCEPTIONS Travel or Non-Travel Related Businesses Perceptions Acceptance of Tourism Action for Tourism Cooperate to Encourage Tourism Provide Services to Travelers Promote Traveler's Interest Awareness of Tourism Amount of Traveler Expenditures Employment Travel -Related Businesses Payroll of Travel -Related Businesses Defined by Volume of Travel Sales Chi-Square JJF Probabi 1 i ty 9.909 2 0.0071 *** 15.762 2 0.0004*** 8.875 2 0.0118** 18.861 2 0.0001*** 6.395 2 0.0409** 7.451 2 0.0241** ; 5.478 2 0.0646* 2.015 1 0.1557 1.349 2 0.5095 JfJfJ. P < .10 p < .05 P .01 108 action scores and each of its components were significantly related to the travel or non-travel nature of the business regardless of the definition of travel related. However, the awareness score and one of its components, traveler expenditures, were significantly related to travel or non-travel type only when defined by percent of sales. 2. Analysis of Financial Institution Data Both the survey data and the data from FDIC sources were used in the analysis of the financial environment for travel development. As in the general business survey, the survey data incorporated information regarding attitudes toward and awareness of the tourism industry; it also included information regarding the willingness of the bankers to make loans to tourism businesses. The responses of the bankers regarding loan decisions need to be in- terpreted in the framework of the overall loan structure of those banks. It is for this purpose that the FDIC data were used. In addition, comparison of loan data for the area's banks with comparable data for similar groups of banks allows analysis of the community's financial environment and potential for support of tourism development. Loan Structure and Risk . Analysis of the loan structure data from FDIC is done primarily using ratio analysis. For this part of the research, it is recommended that someone familiar with financial ratio analysis be consulted or employed (a banker, loan officer, finance professor or other community member with experience in this area). Table 20 lists the types of ratios studied and sample ratios calculated for the demonstration project. In all cases the figures in the columns are percentages, e.g., the net loans of demonstration county banks made up 43.3 percent of the banks' total assets. Similarly, the ratio of capital to total deposits for demonstration county banks is: Capi tal = .096 or 9.6 percent total deposits This type of ratio is not generally referred to as a percentage per se but simply as a ratio. "Capital" and "deposits" are two separate categories of balance sheet items rather than a sub-type (net loans) within a category (total assets). The ratio represents the comparison between the dollar value of the two distinct categories, capital and total deposits, and is thus referred to as the ratio of capital to total deposits. Analysis and comparison of these ratios reveals the loan preferences of the bank groups, or the makeup of the loan portfolio (loan items as a percent of total loans), the extent of the banks' loan support of community commercial and industrial development, and the banks' relative conservatism or willingness to accept risk. The following examples from the demonstration project financial institution analysis should clarify the use of these ratios. Examining the asset items, net loans makes up a smaller percentage of total assets for the community's banks than for any other group, and 109 Table 20 BALANCE SHEET RATIOS FOR SELECTED GROUPS OF BANKS Demo. County ■ Banks BANK GROUP RATIO A B C D E F Asset Items as % of Total Assets Cash and Due from Banks 6.4 8.3 7.7 10.1 8.6 6.4 7.0 U.S. Treasury 14.4 11.2 12.6 11.5 11.6 12.8 11.5 Other U.S. 5.3 6.8 6,0 5.5 7.3 2.2 6.3 Tax Exempts 18.3 16.2 16.5 13.1 13-2 14.6 13.5 Other Bonds .3 .3 .2 .7 .2 .5 .7 Federal Funds Sold 9.1 7.4 7.6 4.4 6.0 2.9 2.3 Net Loans 43-3 46.2 46.4 51.2 50.8 57.5 56.4 Bank Premium and Equipment 1.8 2.3 1.9 1.9 1.3 2.0 1.4 Other Assets Total s 1.1 100.0 1.3 100.0 1.1 100.0 1.6 100.0 1.0 100.0 1.1 100.0 .9 100.0 Total Deposits to Total Assets 84.5 85.4 87.4 89.5 89.8 91.0 90.7 Total Demand Deposits to Total Dept. 28.5 31.6 29.9 35.0 29.8 22.4 25.2 Total Time & Savings Deposits to Total Dep. 71.5 68.4 70.1 65.0 70.2 77.6 74.8 Capital to Total Deposits 9.6 9.8 9-3 8.9 8.3 8.6 8.6 Capital to Total Assets 8.1 8.3 8.1 8.0 7.5 7.8 7.8 Capital to Risk Assets 10.5 10.7 10.4 10.4 9.5 9.9 10.3 Loan Items as % of Total Loans Real Estate 36.6 44.2 50.1 35.3 48.7 55.0 58.9 Farm (except Real Estate) .6 1.3 .8 8.8 4.9 3.7 3.5 Commercial/ Industrial (C&l) 26.3 11.4 13.1 23.6 16.4 13.3 15.0 Consumer 35.1 39.9 34.1 29.0 28.8 26.6 20.0 Other Totals 1.4 100.0 3.2 100.0 1.9 100.0 3.2 100.0 1.1 100.0 1.4 100.0 2.6 100.0 Source: FDIC 110 both the other two groups of West Virginia banks (A and B) have lower per- centages of total assets in net loans than do the comparison groups outside of West Virginia (C-F) . Both demographic and economic differences may cause some distortion of the data. For example, if quality loan demand did not exist in the demonstration county or in West Virginia to the same extent it did elsewhere, these banks would not be expected to have loan portfolios of comparable size and quality. Also, bank size distributions within the groups may account for some of the differences in the data. The smaller (lower percentage of assets) loan portfolios of the com- munity's banks suggests conservatism. This would tend to be supported by the relatively larger percentage of low risk "federal funds sold." Conversely, low liquidity is demonstrated by the small size of the "cash and due from banks" account and this would tend to suggest a willingness to accept risk. If it were determined that the demonstration county banks are inherently risky in terms of their deposit structure and/or capital structure, a small loan portfolio might be a sound strategy. A look at the capital ratios suggests that in general these banks maintain a high ratio of capital to deposits and capital to risk assets as compared to the other groups of banks. This relatively high amount of capital would tend to suggest that the banks are in a position to assume larger amounts of risk than are the banks in groups B through F. The breakdown of the loan portfolio presented in the table warrants further analysis. The subject banks appear to have a smaller proportion of estate loans than do any of the other groups (except for group C, all U.S. insured banks). These banks also have the lowest percentage of their loan portfolio assets in farm loans. These low percentages in real estate and farm loans appear to be offset by a relatively large percentage of commercial and industrial loans. In fact, the difference appears to be the most significant of all the differences identified here. The percent of total bank assets invested in commercial and industrial loans can be found by multiplying the percent of total assets in the loan portfolio by the percent of the loan portfolio held in commercial loans. By group, the percent of total bank assets invested in commercial and in- dustrial is as follows: Bank Group Percent Example of calculation Demonstration County Banks 11.4* (k3.3% x 26.3% = 11. k%) Group A 5-3% Group B 6. ]% Group C 12. }% Group D 8.3% Group E 7.6% Group F 8.5% This final statistic suggests that the county banks do support the business community very well as compared to the other selected groups. Only Group C (all U.S. banks) shows a higher percent of total assets held in commercial and industrial loans. In summary, the loan portfolios of the demonstration county banks tend to be proportionally smaller than those of other banks. Furthermore, the banks tend to have a larger percentage investment in U.S. Treasury securities, tax-exempt securities, and federal funds sold than do other banks, suggesting conservatism and aversion to risk. Other ratios thought to indicate the level of risk in other aspects of the banks' operations suggest that these banks do not have high levels of risk in either their capital structure or their deposit structure. A small loan portfolio therefore does not appear to be required to offset large amounts of risk in other areas of the banks' operations. The percent of total bank assets loaned out to commercial and industrial enterprises is relatively high for the county banks as compared to the norms suggested by the other bank groups. In spite of the seemingly high aversion to risk, the community's banks do appear to be very supportive of private enterprise in the community. Loans to the Tourism Industry . The previous section examined indicators of the degree to which the community's banks lend money to private enterprise. This section is concerned more specifically with the degree to which banks lend to businesses in the travel and tourism industry. In that regard, the chief executive officers of the banks contacted through the previously described mail survey were asked to rank six different businesses in the order in which they would prefer them as potential borrowers (Question 1, 1st survey). The average rank was calculated on the basis of one point for the business to which the bank would most like to make a loan, down to six points for the business to which the bank would least like to make a loan. The six businesses appear below in the order assigned to them by the bankers. The average rank is also indicated: Relative Rank Jkisiness Averag e Rank 1 2 3 k 5 Those businesses listed above that are most directly associated with travel and tourism include motel (ranked third), campground (ranked fifth), and amusement park (ranked sixth). A look at the differences in the average rankings suggests that while there is little difference between the first and second, third and fourth, and fifth and sixth ranked businesses, there is a large difference between the second and third, and fourth and fifth ranked businesses. This would tend to suggest that the bankers are fairly consistent in the ranking of the firms in the first two and last two positions, 112 Coal Company 1.33 Glass Manufacturer 1.83 Motel 3.58 Grocery Store 3.75 Campground (private enterprise, non -government) 5.08 Amusement Park 5.^2 The bankers participating were asked to indicate the relative importance they would give to certain factors that might explain why they ranked their "number one" selection as they did. They were given seven possible factors to rank although they could add any others they felt important. The average rank of these factors were then calculated. Those ranks and the factors themselves are given below listed in their order of importance. Relative Rank Factors Average Rank 1 Risk of loans to that type of business 2.50 2 Loan loss experience with similar business 2.75 3 Benefit of the business to the community 3.50 k Seasonal nature of the business ^.00 5 Familiarity with making loans to similar businesses ^.25 6 Perceived attitude of regulatory agencies toward loans to the business 5.50 7 Loan diversification which would result 5.50 The two factors receiving the highest rankings are both associated with risk. Since the bankers were told that a formal credit analysis ind icated that the businesses have equal amounts of business risk associated with a loan, the responses here emphasize the overriding significance of risk to these bankers as a factor in lending money. In light of the previous analysis of loan structure and risk, it is certainly not surprising that risk is given prime consideration. What may be significant, however, is that some businesses (particularly in the travel and tourism industry in this instance) may have difficulty obtaining loans regardless of the results of a formal credit analysis simply because they are thought to be a more risky business. Regarding the ranking assigned to "campground" as a potential borrower, the bankers were asked to indicate the significance of the same list of "factors" as was previously discussed. This time, however, the bankers were asked to assign a number to each factor in accordance with the following key: Assign a: 1. to indicate a strongly favorable factor 2. to indicate a favorable factor 3. to indicate a factor neither favorable or unfavorable k. to indicate an unfavorable factor 5. to indicate a strongly unfavorable factor 6. to indicate "no basis for judgement" Accordingly, the average numerical score was computed for each factor after eliminating all number "6" responses. Unfortunately, in some cases this resulted in only two valid responses. Following is a list of the factors in the order of their average numerical score. 113 Factor Average Numerical Score Loan loss experience with that type business 1.00 2 Risk of loans to that type business 2.00 3 Benefit of the business to the community 2.33 3 Loan diversification which would result 3.00 2 Familiarity with making similar loans 3.00 2 Seasonal nature of the business 3 - 33 3 Perceived attitude of regulatory agencies toward loans to that type of business 3.50 2 This listing suggests that the loan loss experience on loans to private campgrounds is a strongly favorable factor. A second indicator of risk, the factor described as "risk of loans to that type of business" also re- ceived a fairly good rating suggesting that in terms of risks, banks find loans to campgrounds quite favorable. The only other factor described as favorable concerned the benefit to the community. Two of the factors were deemed neutral in their impact on the ranking of campgrounds. Two other factors were deemed unfavorable. The unfavorable factors included the seasonal nature of the campground business and the perceived attitude of regulatory agencies toward loans to that type of busi- ness. While the data regarding the significance of the seasonality of camp- grounds appeared valid, for the "regulatory agency" factor only one banker indicated it was an unfavorable factor. The other banker indicated it was a neutral factor. The same type of analysis as above was done regarding the significance of different factors in ranking "motel" as a potential borrower. Those factors and their average numerical score are listed below. Factor Loan loss experience with that type of business Benefit of the business to the community Risk of loans to that type of business Seasonal nature of the business Familiarity with making similar loans Loan diversification which would result Perceived attitude of regulatory agencies toward loans to that type of business 3.00 3 The most readily apparent observation here is that no factor was judged to be unfavorable. The fact that the factor ratings tend to be higher than for campgrounds is consistent with the overall preference of lending money to a motel versus a campground. There were also some differences in the relative ranking of the factors. "Benefit to the community" was deemed to be much more favorable for a motel. The two indicators of risk also received a higher absolute average numerical score for motels than for campgrounds. 114 Average Numerical Score n 1.50 2 1.75 k 2.00 3 2.50 k 2.67 3 3.00 3 Two other factors were given a "favorable" rating although only margin- ally so. They were the "seasonal nature of the business" and the "familiarity with making similar loans." The other two factors were rated as neutral. In summary, the responses of the bankers permit us to draw the following concl us ions: (1) Loans to travel and tourism businesses (i.e., motels, campgrounds, and amusement parks) do not rank very high with bankers as firms to which banks would like to lend money. (2) The most important factor influencing the decision of bankers in determining loan approval (given an adequate formal credit rating) is risk. The risk considered here is not revealed in the banks' formal credit analysis. Another important factor in the decision making process is the benefit of the business to the community. The seasonal nature of the business was shown to be favorable for such businesses as motels, coal and glass, but negative for camp- grounds. The final question of the first stage survey seeks additional information about the distribution of commercial and industrial loans (C&l loans) made by the banks. It should be noted that similar statistics for other groups of banks are not available from published sources and thus a comparative analysis is not possible. Nevertheless, the information provided should be of benefit to potential C£ I borrowers in understanding the types of loan characteristics preferred by the banks. Given the limited number of banks to be evaluated, the analysis involves simply tabulating responses, calculating percentages and evaluating the results. Analysis of the data from the second questionnaire can proceed along the same lines outlined above, using hand tabulation and essentially limiting analysis to the frequencies of given answers. The attitudinal questions which duplicate those of the general business survey should be studied for differences from the findings of that survey. In the demonstration project, the bankers' opinions and attitudes closely paralled those of the rest of the business community. Interpretation and Use of the Information in a Development Plan The purpose of this phase of the development effort is to provide the planner with information about how the local business community will accept and support the growth of tourism in the community. Use of the research findings in the development plan must be based on interpretation that relates the findings to the goals and objectives of the development effort. Inter- pretation must furthermore take into account factors outside the scope of this particular phase of the research, such as the general economic and employment conditions, political stability, influence of the business community ?n civic leadership and similar factors. Some of these factors are examined in other phases of the research but some can only be discerned through familiarity with the community. 115 The expectations of the business community relative to the effects of increasing tourism will influence both the timing of the development plan and the elements needed for that plan. For example, it was found that forty-seven percent of the business survey respondents had favorable attitudes toward increased travel and tourism. Travel related businesses tended to have more favorable attitudes than non-travel related businesses, as might be expected. A reversal of that tendency would have serious implications for further development. The generally favorable attitudes indicate fewer barriers to overcome. Coupled with the generally favorable attitudes found in the household survey, it seemed clear in this case that travel development efforts would be well received. The focus of both business and public awareness and information campaigns could thus be concentrated on specific problems. Travel development was perceived to have its least favorable effects on customer theft prevention, availability of parking facilities and busi- ness operating costs. Suggested by these findings therefore might be such measures as: (1) research into case histories of similar development efforts and measures taken by businesses to minimize customer theft; (2) programs for businessmen focusing on ways to prevent customer theft and means of holding down operating costs in light of higher and/or seasonal demand; (3) cooperative program, policies or planning with local security forces; (k) analysis of the parking situation, what problems presently exist, how parking would in fact be impacted by increased tourism and what solutions might be available to the community. In addition to such action programs, a public relations program could be mounted to (1) eliminate unfounded negative expectations; (2) focus attention on all the areas in which positive effects are perceived; (3) draw attention to the efforts of the development team to eliminate/alleviate real problems presently existing and correctly perceived by the business community; and (k) point out areas where the increased development, as re- flected in increased sales receipts, increased tax receipts, even increased demand, will generate desirable development—the ability to finance a new parking area/structure, for example — which otherwise would not be possible. Comparison of the perceptions of the effects of increased tourism among the business community, the bankers and the residents will help to focus on the major, predominant concerns of the community. The unanimous agreement of the three groups that increased tourism would have a negative effect on the availability of parking facilities was a clear signal that any long range development would have to provide additional parking space or show why parking would not be a problem. The judgement of the planner must be brought into play in interpreting such findings. Were these perceptions based on a real shortage of parking facilities, or on a conditioned response reflecting past conditions? (The city had recently constructed a major downtown parking facility.) Is the expected shortage of parking space general izable to the county as a whole, or is it more site specific, e.g., downtown parking? The answers to such questions will come from awareness of actual conditions, awareness of historical conditions and understanding of the community's frame of reference or familiarity with other tourism 116 developments. Regardless of the real action needed, however, efforts should be made to overcome the belief that availability of parking will suffer. Any issue such as this can be blown out of proportion if the community is ill-informed, erroneously informed or ignored. The importance of the findings relative to the cooperative and independent activities which businesses undertake to encourage travel and tourism seems self evident. It is the foundation on which further promotional activities must be based. The level of participation will provide a guage for how much focus must be placed on encouraging new efforts. The findings may be used to leverage additional cooperation. For example, sixty-eight percent of all the responding businesses in the demonstration county took part in some or many activities to promote or encourage travel and tourism. This statistic might be used to encourage other businesses to become part of the majority-or "68 percent of your competitors can't be all wrong." The use of the findings relative to awareness of the impact of travel and tourism parallels the use of the data regarding residents' awareness. The findings in the demonstration county indicated that business persons were no better informed than the residents. Clearly there was need for information dissemination. Even travel businesses need to be better informed, particularly regarding employment, and wages and salaries. Enlisting their participation in the awareness/information campaign would serve to better inform both travel and non-travel businesses. Surprisingly, for a service industry dominated by small businesses, actions supportive of travel were found to be independent of firm size in the demonstration research. Furthermore, travel council membership was almost evenly divided between travel and non-travel businesses, large and small businesses in terms of sales volume and number of employees. These findings suggested that while the foundation existed on which to build non- travel business support for travel development among all sizes of firms, travel businesses needed to become far more active in coordinated efforts designed to foster the growth of their own industry. Programs were needed to make travel businesses aware of their common objectives, and of their mutual interdependence. The business community also needed a greater under- standing of the totality of traveler needs and the degree to which such needs were currently being satisfied in order to eliminate both voids and unnecessary duplications in local services. The banking community proved no more aware of the impact of tourism than the general business community or the residents. Furthermore, the attitudes found, and descr ibed earl ier, regarding loans to travel businesses indicated a definite need for better information among this group. Bankers are a very influential group in most communities and their support should be personally solicited early in the development planning. Awareness of their concerns, attitudes toward risk, pre-conceptions or misconceptions regarding tourism businesses is essential to preparing a presentation or "sales pitch" that will be effective in enlisting their cooperation and active participation. 117 A final point regarding interpretation and use of the data must be emphasized. The survey findings cannot be interpreted or used in a vacuum. They must be related to the findings in other phases of the research — the economic impact, the travel resources available, attitudes of residents and the legal environment, and they must be interpreted and used in 1 ight of personal knowledge and understanding of the community. 118 Chapter IX PROFILING THE LEGAL ENVIRONMENT Today there is a complex web of government regulation on the federal, state and local levels that will have important implications for any type of future land or business development. Much of the legislation authorizing such regulatory controls and constraints is quite recent, a significant portion having been put into law in only the last five to ten years. The growth of such government intervention into economic life and development has been so rapid that few individuals have been able to keep pace with the changes. Yet, persons engaged in promoting and planning the expansion of local economies, whether they be from the private or the public sector, must be familiar with the scope and impact of such laws so that they can tailor their plans to accommodate governmental requirements and restraints and to take advantage of the protection and benefits offered as well. The purpose of this chapter is to provide the planner a framework for investigating the legal environment and an overview of the types of laws and regulations which may impact different aspects of a tourism development strategy. The wide variety of legal factors impacting on tourism includes such diverse areas as the federal government's attempts to control the quality of our environment, state and local liquor laws, amusement taxes and business 1 icensing, to name a few. Tourism and the Legal Environment Most of the laws that apply to other businesses apply to travel busi- nesses. These include criminal law, commercial law, regulatory law, tax law, administrative law and the laws of tort. These may generate from local, state, or federal governments, and involve a myriad of agencies. And, just as liability actions are increasingly more troublesome for professionals such as doctors and lawyers, they also affect many travel businesses. The impact of government legislation and regulation is felt by the private sector when the initial planning of an enterprise begins and continues through the development and operational phases. Private recreation enterprises of any size and scope are subject to a myriad of regulations and requirements administered by a great number of governmental agencies. It is often difficult to know what regulations and agencies apply to a particular project since the agencies do not even know. This is usually an extremely frustrating process which can easily discourage all but the most determined and well-financed enterprises. What may have started out as relatively simple procedures to cover a program or regulation are continuously revised and fussed with so that over a period of time they become unduly and unnecessarily complex. The frustrating factors are usually not related to a basic act or program but to the resultant regulations and "red tape" involved in obtaining permits, licenses, inspections, etc J The travel development group's role regarding the interface wi th the legal environment is to help untangle the "red tape" to make the private entrepreneurs' job easier. Since the objective is to encourage travel and tourism development, "profiling" the legal environment will allow the planner to assist businesses in expanding or initiating operations. The legal profile should serve as a guide through the maze--to the right agency, the right office, and to all the possible agencies administering regulations pertinent to that development. It should also assist the private entrepreneur in assessing some of the risks and costs, such as those associated with 1 iabi 1 i ty. The implementation and administration of federal regulations and the applicable state laws regulating any business development will differ from state to state, as will local laws among communities/counties within a state. Since it would be impossible to list all the specific laws, regulations, and agencies that may be applicable to your situation, the purpose of this chapter is to provide a suggested means of gathering and organizing this information and some direction to the avenues that must be pursued in compil- ing a legal profile. Examples from West Virginia are provided to illustrate procedures and problems but the specific regulations/controlling agency should not be assumed to be directly applicable to your situation* Collecting and Organizing the Information Profiling the legal environment requires the collection of information on a variety of topics from various sources, including traditional legal source materials, rules, regulations and policy statements of federal, state and local agencies, and interviews with state and local government officials. The following section provides an overview of the broad topical areas that have to be explored. Organizing the information will be as important as collecting it, since the hope is to simplify the process the private entrepreneur will face. 1. Organizational Framework The initial reaction of the several lawyers who participated in the demonstration project was some bewilderment at the scope of the task. The need for a systematic approach was obvious. While the suggested approach offered here may not meet all of your particular needs, some systematic organization of the investigation must be established at the outset by the planner and the legal investigator. Heritage Conservation and Recreation Service, U.S. Department of Interior, in a letter to Work Group V regarding the development of the 1978 Nationwide Recreation Plan, dated January 30, 1978. 120 Table 21 summarizes the initial organization of the legal profile. It includes the relevant factors or issues and detail regarding expected sources of information. Working from such a plan, the investigator can add additional sources/agencies to be contacted or additional areas/issues/ laws requiring investigation. This plan should be a working tool throughout the study. The second means of organizing the data collection is the development of a card file. The file should be organized on the order of a library card file, with cross references to topics, agency names, and legislation titles/acts. Not all information about the particular topic or law would be included in this file; rather, the reference would be to where complete information is available. If the card file format is set up at the outset, it can become a matter of course throughout the study to add to it as each area is explored. A second file may also be desirable to include complete addresses and names of contact persons, or the agencies or offices identified and/or con- tacted during the study. Thus the topical file would provide, for example, a card for the Federal Water Pollution Control Act. That card would then reference the Federal Environment Protection Agency (EPA) and the Army Corps of Engineers, both given specific powers by the Act. The agency or contact file, the second file, would provide a listing of contact persons, if known, and address or addresses for the regional, state or national office of the agency. In addition the topical file would include such topics as water quality, pollutant discharge, navigable waters, sewage, dredge and fill, all of which would reference the Federal Water Pollution Control Act. In addition, state statutes or regulatory agencies would also be referenced on the same topic cards as needed. State regulations of pollutant discharges, for example, may be stricter than those contained in the federal regulations. Both a state and federal permit may be necessary, or the state water control agency may simply administer the federal permit system. The reference to the state agency would indicate that separate state regulations must be complied with in addition to the federal regulations. One additional tool which may be helpful in making the information usable for the private entrepreneur is a "flow chart" summarizing the steps for licensing approvals, and so pn, in proper sequences for various aspects of development. During the legal investigation it will become clear that certain steps must preceed others. In other words, such a chart would in- dicate which permits, licenses or approvals are required before the next one(s) can be obtained. A flow chart or schematic, on the order of an or- ganization chart, could be developed, added to and altered, during the course of the investigation with little added time or effort. Copies of these charts could then be made available to interested businesses as they plan their future growth/development. Several of these charts would be needed to detail the steps in obtaining land and water rights, business operations licenses, health and safety permits, and so on. 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This will be particularly helpful in showing where several aspects of securing legal approvals may be initiated simultaneously or can overlap. 2. Need for a Lawyer The guidelines presented here for the legal profile are not intended to replace the assistance a lawyer can provide to the private entrepreneur. It is important for anyone planning a business to see an attorney. The formalities of starting a business vary in complexity with the type of busi- ness involved. For some businesses, obtaining a business license may be the only requirement. For others, the requirements could include numerous licenses, filings with various regulatory agencies, a corporate charter, by-laws, and a stock insurance. Obviously, the more complex matters necessitate professional legal assistance, but the simpler matters may also be better handled with professional legal assistance. The relationship between the business person and the lawyer may become more important later in the life of the business, even if it does not seem imperative at the outset. It is quite likely that the business will need legal representation at some point in time, and the attorney will be better able to help if she or he is familiar with the business, its operations, goals, and achievements. At the same time the business person is establish- ing a relationship with an attorney, it may be a good idea to establish a relationship in a similar manner with other professionals whose services might be needed in the course of business operations, such as an accountant. It is also recommended that the development group secure the assistance of a lawyer or professional familiar with legal matters to conduct the legal environment investigation. An area attorney may be a member of the develop- ment group or may be willing to donate his/her services. Other sources of legal assistance include law students, law clerks, legal secretaries and 1 ibrar ians. 3. Sources of Information In addition to those sources of information listed on Table 21, the following references are also recommended for further information on specific areas of the law. John L. Goodwin and James M. Rovelstad, Travel and Lodging Law (Columbus, Ohio: Grid Publishing, Inc., 1980). University of Missouri, Tourism USA , Volume IV, "Sources of Assistance" (U.S. Travel Service, U.S. Department of Commerce, 1978). University of Arkansas, Effects of Environmental Protection Regulation on Regional Economic Development (Economic Developmen t Administration, U.S. Department of Commerce, 1977). 125 Legal Factors Impacting on Tourism The legal factors impacting on tourism development have been organized into the following seven basic categories, each of which is described briefly in this section: 1. Environment and land use. 2. Public health and safety. 3. Transportation. k. Recreational activities, facilities and attractions. 5. Taxation. 6. Business organization and trade. 7. Employment. 1. Environment and Land Use Water and Air Quality Controls . Federal environmental controls on the quality of the air and of water have undergone revision in recent years. The Federal Water Pollution Control Act was amended in 1972 and The Clean Air Act in 1970. In both cases the changes put considerably more muscle into federal enforcement of a i r and water quality standards, resulting in permit systems that represent a serious restraint on certain types of business development. In addition, provisions of the above federal acts, as well as provisions of two other recent pieces of federal legislation, the Flood Disaster Protection Act (197*0, and the Federal Coastal Zone Management Act ( 1 969) , encourage the revision of state environmental laws and the institution of state, regional and local land use controls (i.e., zoning). As a single example, the Federal Water Pollution Control Act (hereafter F.W.P.C.A.) and state water quality control statutes have important implica- tion for some types of tourism facilities, such as campground or water recrea- tion facilities that are located on or near streams, lakes, etc. In the first place, the F.W.P.C.A. empowers the Federal Environment Protection Agency (E.P.A.) to promulgate standards for water quality. The Act also authorizes the E.P.A. and the Army Corps of Engineers (hereafter the Corps) to administer a permit or licensing procedure under which persons discharging pollutants into navigable waters thereby affecting water quality, must obtain approval for their activities. Of the types of pollutant discharges covered by the F.W.P.C.A. 's regulations, the two most likely to be discharged as a result of the construction or operation of a tourism facility are sewage and dredge and fill materials. A permit from the E.P.A. is required for facilities discharging sewage and one from the Corps in the case of dredge and fill discharges. In both cases obtaining and retaining the permit is conditioned upon compliance with specified quality standards. Therefore, a person constructing or operating a facility centering around a body of water may well find it necessary to obtain one or both of the permits. In order to do so, that person should contact the administering agency in the preliminary planning stage of the project. 26 Working with the agency and its technical experts, adjustments to the plans can be made early to meet the federal criteria. Also, such early contact may be doubly important given the often lengthy nature of the permit procedures. Moreover, a pollutant discharge must also comply with state environmental restrictions, which may be stricter than those contained in the federal regulations. In some states, the state water control agency, which may be a separate and distinct body or a division of a more encompassing en- vironmental or health agency, simply administers the federal permit system. Thus, a single permit is necessary to satisfy both state and federal law. In many other states, the state permit system is a separate procedure altogether, necessitating that a person obtain both a federal and state permit. In West Virginia, all persons depositing or who could be depositing sewage, industrial wastes or other wastes into or near any of the state waters must file with the Division of Water Resources. This division is a part of the West Virginia Department of Natural Resources, After a public hearing, the Division of Water Resources may issue a permit for discharging waste if it does not exceed state and federal water quality standards. Such operations may be subject to inspection to ensure compliance with the terms of the permit. The West Virginia Air Pollution Control Commission has been established to monitor the discharge into the air of any liquid, solid, gaseous, organic, or inorganic substances that cause injury to human health, plant or animal life, property, or would i nterfere with the enjoyment of that property. Persons engaged in discharging pollutants into the air must file with this commission and submit reports upon request. Rural Land Use Regulation . One of the more interesting findings of the legal study of the demonstration region was the almost total lack of governmental controls over the development and use of land in rural areas. This will of course vary from state to state, but may well be applicable for rural areas in many states. Certainly, there is some federal and state regulation of the use of the land in rural West Virginia, but such regulation is largely limited to the licensing and control of pollutant discharges into the air or waters of the state and to the control of solid waste disposal, as discussed above. Municipalities, on the other hand, generally do have some form of land use control, effectuated through zoning ordinances or building codes; but, such controls, even where effectively enforced, are only applicable to areas within the geographic boundaries of the municipalities. There is no state or regional growth plan enforced under zoning or land use rules to protect or restrain developers so long as they remain outside of municipalities of any size. Not only has West Virginia abstained from engaging in statewide or regional zoning itself, but the counties, to whom the state delegated some 127 of its power to control land use, have also been reluctant to move in the direction of land use controls. In the demonstration county, as in a number of the other counties of West Virginia, there is a subdivision ordinance which controls certain types of land developments. However, this attempt at county-side land use control is very limited in its scope and would be unlikely to have any impact on business or industrial development. Even where it would be applicable, subdivision ordinance provides only minimal controls, most of which are designed to provide adequate sewage and drainage facilities and control flooding. The apparent lack of significant land use regulation in rural areas may act either to encourage and to discourage the development of tourism. On the one hand, developers and businesses do not have to contend with often annoying and restrictive rules that control the placement, construction and operation of their facilities and attractions. On the other hand, un- planned and unregulated growth can serve to spoil the natural and manmade aspects of the region which attract the tourist. Zoning . In West Virginia, as in other states, county and municipal governments have the power to enact zoning laws to control land use within their jurisdiction. Zoning laws, as most planners know, can designate certain areas for residential use only, regulate the size/type business or industry in a given area and may also specify maximum size of buildings and minimum space surrounding the building. Zoning laws are generally governed by planning commissions, county commissions and/or city councils. The municipal or county government may be petitioned to change its zoning regulations. Also, citizens can petition to subject the adoption of a zoning regulation to a public vote. Generally, public hearings are held on proposed zoning ordinances. The implications for tourism development are two fold. First, the individual entrepreneur must ascertain that any planned new business or changes, additions or expansions of an existing business will be in com- pliance with zoning regulations. Secondly, the tourism development group should be alert to the implications for tourism of proposed new zoning regu- lations, and exceptions or changes to existing regulations. Awareness of community sentiment regarding zoning may suggest needed public information efforts if a zoning change will be needed for tourism development; or it may suggest that sites for development be located in areas already zoned for the type business being considered particularly if public sentiment has traditionally been strongly opposed to zoning changes. Historical Preservation . Information for designating buildings or sites as historic landmarks can be obtained from local municipal or county historic landmark commissions. Such buildings or sites must be linked with the cultural, political, economic, military or social history of the area. When certified as an historic landmark, the owner of such property may consent to maintain the landmark according to the standards of the commission. If such an agreement is made, the county assessor is instructed to take this into consideration when assessing the property. 128 Individuals can contract with the federal government to preserve historic buildings and sites for public use without forfeiting their title. Further information may be obtained from the National Park Service or the Heritage Conservation and Recreation Service of the Department of the Interior. 2. Public Health and Safety The business person, or anyone dealing with the public, is often subject to duties and responsibilities which other people are not. Not only is the business person responsible to some extent to employees and customers, as might readily be assumed, but in many cases he may also be held responsible for the health, safety, and welfare of third persons. Customers and visitors who may be on the business premises may be roughly divided into two groups--! icensees and invitees. Generally speaking, cus- tomers of the business are invitees and others who are on the premises for no business purpose are licensees, but there is a great deal of gray area and overlap between the two. In most cases the distinction now rests on the actions of the business person as much as on the intent of the other party to conduct business affairs while on the business property. If by the words, advertisements, or actions of the business person, the public is invited onto the property, or led to believe that it is invited onto the property, then those entering as a result of the invitation are invitees. Anyone entering upon the premises without having been so invited but with the permission of the owner, is a licensee. Those entering without either an invitation or at least the tacit permission of the owner are trespassers. It has been held that property owners have no duty of care toward tres- passers on their property save to refrain from inflicting willful or wanton injury upon them. Somewhat more care is owed to a licensee. Some common examples of licensees would be salesmen or solicitors at private residences, people who come in to get out of the rain, or people who are merely taking a short cut through the property. In the case of licensees, the owner must not only refrain from causing injury to the visitor, but must also warn the licensee of any dangers known to exist on the property and of any other conditions on the property which could forseeably harm the licensee. This does not extend to a duty to seek out possible dangerous circumstances. A warning as to known dangers is generally sufficient, such as a warning regarding the use of microwave ovens. Customers fall into the group designated as invitees, or business in- vitees. This group would also include people taking or delivering orders, independent contractors and their employees, tennants, people using tele- phones or restrooms maintained for the public, and anyone else who is visiting the premises as a result of an apparent invitation to the public to use the premises in that manner. If the invitee strays beyond the area for which the invitation is intended, i.e., to private rooms or employee lounges, or if the invitee stays longer than it reasonably necessary to complete his business on the property, then he ceases to be an invitee and is instead only a 1 icensee. 129 The duty of care owed by the business person to the invitee is greater than that owed to the licensee. Not only must the invitee be warned of any conditions which could forseeably be dangerous, but there is also a duty upon the property owner to inspect the premises for any latent dangerous conditions of which the owner is not already aware. In addition, reasonable care must be taken to prevent harm to the invitee from any forseeable hazards. Hotel /Restaurant Standards . Standards and regulations of hotels/motels and restaurants encompass a wide range of health and safety regulations, most of which are generally interpreted and administered at the state level. Any person considering establishing a new motel or restaurant should consult a more detailed source on lodging and food service law, as well as the appropriate state regulatory agencies. Restaurants are normally subject to health inspections. In West Vi rg in ia , an operator of a restaurant must first apply to the State Director of Health for an inspection. If the site is approved, the Health Department will issue a certificate. The local county commission must have a copy of the certificate for its files and the operator must display the certificate in a conspicuous place in the establishment. Regulation of restaurants includes such areas as cleanliness and sanita- tion, proper lighting by day and night, plumbing and ventilation. The West Virginia Department of Health makes annual inspections of all restaurants. The health inspector has the right to enter and inspect kitchens and any other place where food is stored or served. Failure to comply with health regulations may result in the closing of the restaurant by the State Health Department. Emergency exits and fire extinguishers must conform with the State Fire Code. The State Fire Marshall's office must be contacted for the specific regulations. Management cannot knowingly hire any person who has an infectuous or communicable disease. Food handler permits may be required for employees and such permits are generally administered by a county health department. Restaurants must have an adequate method of disposing of solid waste. Both State Health Department regulations and local ordinances may govern solid waste disposal. A junk pile may not only be a neighborhood nuisance, but it may pose a health threat as well. The owner of property upon which a trash heap is located may be liable for any resulting personal injuries. If an establishment uses microwave ovens on public premises, it must post a warning. The sign must state: "Notice to persons having pacemakers- Establishment Uses a Microwave Oven." At present there are no specific regulations governing the sale of prepackaged food and drink in West Virginia. Unattended vending machines are exempt from any Sunday closing law. Operators of vending machines may be held responsible for personal injuries resulting from contaminated food purchased from their machines. There is an implied warranty that all food 130 products in the vending machines are safe to eat. Operators of vending machines may also want to obtain insurance for their property for protection against damage and theft. As in the case of a restaurant, a hotel must generally be inspected by the State Health Department before it can open to the public. The hotel operator applies to the State Director of Health for the initial inspection. If acceptable, the Department will issue a certificate which must be recorded with the local county commission and posted in a prominent place in the establishment. Each year the Department of Health must reinspect the premises. An inspector may enter at any reasonable time, but he cannot invade the privacy of a guest's room without the guest's consent. If the hotel fails to comply with the Department of Health's regulations, the hotel may be shut down. Hotels/motels must meet regulations regarding lighting, plumbing, venti- lation; safety in the guest's room, in public passageways, and at exits; fire codes; and employee health standards. Liability of the hotel operator is also subject to legal restrictions. In West Virginia, a hotel is liable only up to $250 for loss of guests' property stolen from its room. If the management posts a notice in a con- spicuous place that the hotel i s not liable for theft of valuables unless placed in the hotel office, the hotel is not liable unless the valuables are stolen from the office. When the hotel agrees to hold valuables for its guests, the hotel becomes a bailee. When goods are lost or damaged while in the possession of the bailee, there is a presumption of negligence by the hotel. Therefore, the hotel will be liable for the loss. Recreational Facilities . In many cases, no special public health or safety rules apply to recreational facilities. One would be hard pressed to collect a great deal of golf course legislation. In these cases, the same rules apply as for other businesses. In some states, or in some parts of the country, there may be special legislation or special jurisdiction which governs a particular type of activity. For example, navigable inland waterways, principally rivers and lakes, are under federal jurisdiction and are governed by U.S. maritime legislation rather than by state law. Whenever a business invites people onto its property to conduct business or engage in trade, the business owes those people a duty to provide a safe place in which to conduct that business. This includes things which may not normally be considered conducting business, such as the use of swimming pools, tennis courts, ski slopes, and hiking trails. All of these are busi- ness ventures for the owner even if there is no separate charge for the use of the facilities. In every case, it is the business person's duty to inspect the property and to keep it in reasonably safe repair, or to make adequate warn ing to anyone who might reasonably be endangered. Similarly, when patrons rent equipment, the business cannot be held responsible for the skill of the individual user; but it will be held liable for accidents 131 caused by equipment which has not been maintained in a condition reasonably suited to the purpose for which it was intended. The major exception to the proprietor's duty to inspect the premises and remove hazards is when the land is in its natural condition. Even this is not completely excepted. Generally, the closer the land is to an urban area, the greater the duty to keep it in repair. This is especially true of trees which fall or are in danger of falling across the road. Also, the exception only applies, if at all, to land entirely in its natural condition, and not to land upon which there have been man made improvements or modifications. The other major area of exception is the different duty which is owed to children. As a general rule, it would suffice to say that a much greater duty of care is owed to a child than to an adult. This greater duty di- minishes as the age of the child increases and the child is more able to understand warnings and comprehend potential dangers. Most states have what is known as an "attractive nuisance" doctrine. Simply stated, it means that a property owner may be held liable for an injury to a child if there is some condition on the property which might entice or attract a child. This is true even if the child is a trespasser. A common example is the situation in which the child drowns in a swimming pool or pond even though he/she was not invited onto the property or, in fact, was even warned away. West Virginia and Virginia do not subscribe to the "attractive nuisance" doctrine, but have instead a "dangerous instrumentality" rule which operates in the same fashion. Camp ing Fac i 1 1 1 ies . If the owner of a camping facility charges for the opportunity to partake of the recreational facilities, generally the landowner must use ordinary care to protect the customers' safety. The landowner must erradicate all known hidden dangers or post suitable warnings. In West Virginia if the land is open to the public free of charge, the landowner is not responsible for injuries on any of this property. How- ever, the landowner will be responsible if he willfully refuses to warn against dangers on that property. In the case where a specific activity is free, but the guest wasattracted to the land due to some commercial activity, the landowner may be responsible for injuries resulting from the activity. For example, the owner of a marina that allows but does not charge for swimming must post proper warnings of danger or be held responsible for injuries resulting from these dangers. 3. Transportation Transportation concerns of the tourism development group will generally be limited to those forms of transportation which may be augmented or initiated within the community. Although airline and railroad transportation are important and necessary linkages for tourism, the likelihood of a community initiating such development is very limited. Furthermore, the complexities 132 of such development are beyond the scope of this manual. Consequently, this section focuses on those forms of transportation most relevant to a community development plan—buses, cabs and other motor carriers, tour ve- hicles and company owned vehicles, such as cars used as 'limousines. Motor Carriers . A motor carrier includes any passenger vehicle with more than nine (9) passenger seats, any road tractor, any tractor truck, or any truck with more than two (2) axles. In West Virginia, public motor carriers are regulated by the State Public Service Commission. The addition, for example, of a new taxi cab company in an area must be approved by the Public Services Commission and such approval may require proof of demand for cab service in the area. A carrier must renew this approval each year, maintaining rates in accordance with the approved rate structure, and must exhibit cab cards issued by the Commission. Interstate motor carriers operate under the authority of the Interstate Commerce Commission but are also subject to state regulations. Each state formulates its own regulations as to maximum width, height and weight limits. Generally, these regulations may be secured from the State Department of Highways. In addition to normal motor vehicle licensing, the owner of a motor carrier must obtain a registration card and an identification marker from the State Tax Commissioner because businesses operating motor carriers are subject to a motor carrier road tax. This tax is in addition to the annual tax on the gross income of mass transportation lines operated for profit. Local licensing and fees may also be required; a cab company may be subject to local business and occupation taxes, for example. Tours . When tours are conducted with the aid of mass transportation, the operators of such tours must be aware of certain legal duties. These carriers must exercise the highest degree of care in the operation of their vehicles. Passengers must be treated respectfully, and carried in a convenient and comfortable manner. The carrier of passengers has a duty to protect passengers from injury by other passengers. The carrier is not responsible for passenger injuries caused by hidden or internal vehicular defects, unless the carrier had prior knowledge of them. The operator of the carriers must use reasonable care in determining where passengers should enter and exit the vehicle. Yet, the passenger also should use reasonable care when either boarding or disembarking the carrier. The carrier of passengers is responsible for its passengers' baggage during transportation but this liability may be limited by the contract between the passenger and the carrier. Company Vehicles . The employer must be concerned with the problem of liability relative to company vehicles. Workmen's compensation will cover employee's injuries that occur while driving the company vehicles. However, the employee must be paid to make that specific trip in furtherance of company business. 133 The employer must obtain insurance to cover property damage to the company vehicles and to other vehicles, plus coverage for personal injuries occurring to non -employees. k. Recreational Activities Recreational activities are subject to a number of regulations, many of which may be overlooked in the initial enthusiasm for a tourism develop- ment project. Consider, for example, the enthusiastic entrepreneur who plunges into making the old hardware store a conveniently located pizza parlor, only to find out later that a beer permit cannot be obtained due to the establishment's proximity to a church. Liquor laws, gambling and racing regulations, as well as restrictions on hunting, fishing and boating are among the more common areas where the law impacts on recreational act ivi ties. These types of regulations vary considerably from state to state and among individual communities. It is safe to say, however, that local, state, and in some instances, such as a usage of public bodies of water, federal regulations must be examined. This is one area where local community or county regulations may have the most serious impact. Alcoholic Beverages . Most states regulate the distribution and sale of alcoholic beverages. In West Virginia, the State itself operates retail establishments which sell sealed containers of liquor. Beer, considered non-intoxicating, is the only alcoholic beverage that may be sold by private retailers. Only private clubs may sell alcoholic beverages by the drink. A private club must apply for a license to the Alcoholic Beverage Control Commissioner and the applicant must post a bond to accompany the application. There is an annual license fee collected by the Commissioner. The clubs must purchase all alcoholic liquors from the State stores at the regular purchase price. State regulations for a liquor license will vary, but may be expected to control (1) legal age of individuals to be served wine, beer or other alcohol, (2) when alcohol may be served, e.g., some states prohibit the sale of alcoholic drinks on Sunday, (3) establishment closing hours, or earliest hour for sale of liquor, and {k) presence of gambling or slot machines on the premises. In West Virginia the license regulations also stipulate that liquor can only be sold to club members and no advertisement is allowed outside of the club's premises which states that alcoholic beverages may be purchased at the club. Any West Virginia municipality may levy a licensing fee on private clubs operating within their boundaries. Local regulations must be checked as to whether there are local licensing fees or other restrictions in addition to the state regulations. Many states differentiate between beer, wine and liquor in the applicable laws. In West Virginia, beer is considered a "non- intoxicat ing" beverage. 13*t One must obtain a state license to manufacture, sell, transport or distribute beer and application for this license is made to the Non- Intoxicat ing Beverage Commissioner. There are two classifications of retail dealers of beer. Class A retail dealers are authorized to sell beer for consumption on or off the licenses premises. Class B retail dealers have the choice of two permits: sale of only unchilled beer and the sale of both chilled and un- chilled beer. This beer is to be sold only in sealed containers and for consumption off premises. The sale of beer to any one person at any one time must be less than five gallons. Finally, a Class B retailer must be a retail establishment where food is sold for consumption off the premises. Beer or liquor licenses generally cannot be automatically transferred to another person or to another location should a business move. Application must again be made to the appropriate Alcoholic, or "Non- I ntoxicat ing" Beverage Commission. Gambling and Racing . Most states and many communities have regulations pertaining to the legality of various forms of gambling, and racing, par- ticularly betting on races. A State Gaming Commission may exist or informa- tion may be obtained from the State Tax Commission or Department of Commerce. Again, local municipal and county laws should also be carefully investigated. In some states, such as West Virginia, the State grants much of the authority for these laws to the local governments. Thus the applicable regulations may vary from town to town, and the legal jurisdiction in any given location must be carefully ascertained. A word of caution is in order regarding attempts to change local gambling laws, retail store hours, e.g., "blue laws" and similar legal regulations viewed by many as designed to protect the moral fiber of the community. Such laws are most difficult to change and attempts to do so can create substantial opposition. Before considering such action, the planner should carefully review all other alternatives. Tourism can be developed if liquor isn't sold on Sunday or betting is not legalized, but the form of the tourism development must be compatible with these community values. There is no substitute for knowing your specific community, its goals, values and heritage. Hunting, Fishing and Boating . Licensing for hunting and fishing is generally controlled at the state level by a Department of Natural Resources or similar department or bureau. While licensing fees, availability of temporary licenses or special fees for out-of-state visitors can be helpful in encouraging tourism, such regulations will probably be beyond the influence of the community planner. More important to the planner are the regulations that pertain to natural resources within the community. Before initiating development based on attracting hunters, fishermen or boaters, it must be ascertained that such activity is permitted in that area. Federal, state and local regulations may be involved depending on ownership and nature of the property. The State Department of Natural Resources or a regional office of that department is the best starting point for this aspect of the legal investigation. 135 If such development is planned, community attitudes should again be considered. A large influx of tourists to an area formerly considered "their own" recreation area can generate substantial discontent among community residents. Certainly those whose property adjoins the public area or who for other reasons, such as boat moorings, can be identified as regular users of the area should at least be advised of, and preferably involved in, the planning of such development. 5. Taxation Taxation is inevitably a thorny problem inasmuch as all levels of govern- ment are involved and specialized taxes, licenses or fees may be levied on such a vast variety of activity. Some specialized taxes, such as the motor carrier use tax, and licenses, such as those required to sell alcoholic beverages, have already been mentioned. As a matter of course, the Internal Revenue Service (IRS), State Tax Commission and local municipal and county authorities should be consulted by a business person prior to any expansion of business operations or initiation of new business. Both an accountant and an attorney are again recommended for the entrepreneur wending his/her way through the maze of tax regulations. Tax laws vary substantially from state to state, so the following is intended merely as a starting guide to potential forms of taxation. In addition to general laws, numerous exemptions are also attached to the laws and must be examined as well. Income Tax . Federal, state and in some states, local income taxes may be applicable. Individuals and partnerships are generally subject to the same income tax laws while corporations are subject to corporate income tax regulations. Pr i vi lege Tax . A privilege tax, or Business and Occupation tax (B&O) as it is called in West Virginia, is a tax on the "privilege" of conducting a given type of business. Different forms of businesses may be taxed at different rates. For example, in West Virginia amusements are taxed at the rate of $.71 per $100 of gross business revenue while services are taxed at the rate of $1.15 per $100 of gross business revenues. Some types of businesses may be exempted and others may be eligible for certain tax credits. State and local governments may use privilege taxes. Consumer Sales Tax . Most states have some form of consumer sales tax, a tax on the sale of all goods and services to the consumer. Most states also have a number of exemptions to this tax, such as the sale of gasoline, the sale of food for human consumption, which in turn may exclude food sold by food-service establishments. Excise Taxes . Many states will place an excise tax on items considered not to be essential to life, such as cigarettes and soft drinks. Most vendors will not have to worry about paying the cigarette tax since it will have already been paid. When the tax is paid, tax stamps are placed on each package. Thus, the retailer must make sure that all 136 the cigarettes have tax stamps. Municipalities and other governmental sub- divisions are generally prohibited from imposing their own tax on cigarettes. Soft drinks may be handled in a similar manner. Licensing . In West Virginia a vendor (seller of goods or services) must have a certificate to engage in business. To obtain this business franchise registration, the vendor must apply to the State Tax Commissioner and pay a fee for each location of the business. This certificate must be renewed each fiscal year and must be posted in a conspicuous place on the business premises. (Usually this is around the cash register.) In addition, municipal business franchise taxes may also be applicable. A domestic corporation in West Virginia must pay an annual licensing tax on its charter. The tax is based on the corporation's authorized capital stock. Foreign corporations operating in West Virginia must pay a larger annual licensing tax. The Secretary of State is in charge of this tax col lection. Both domestic and foreign corporations must file annual reports with the Tax Commissioner. Also, foreign corporations must pay an annual fee to the Secretary of State for his services as an attorney-in-fact. 6. Business Organization and Trade Business Form . A business may be operated as a sole proprietorship, as a partnership, or as a corporation. Each of these has its advantages and disadvantages. A sole proprietorship, as the name implies, exists when one person operates a business without incorporating. In this case, the business taxes are paid as a portion of the owner's taxes; that is, business income is the same as owner's income and only one income tax is paid. By the same reasoning, business debts are the same as owner's debts. Any loss which the business suffers will have to be paid by the owner and the owner will be liable for such debts to the extent of all his/her personal assets. A partnership is similar to a sole proprietorship, except that more than one person joins in ownership of the business. Often a partnership agreement is signed by all of the partners to set the terms of the parners 1 relationship to each other and to third persons. Such an agreement should state how the partners intend to divide any profits or losses of the business management and the business assets. The business income and losses are taxed as income and losses of the individual partners according to the share each received under the partnership agreement. Unless stated otherwise, profits and losses are divided equally among the partners. Similar to the sole proprietorship, each partner is liable for the debts of the partnership to the extent of all personal assets. Most states have adopted provisions of a Uniform Partnership Act as a part of their state statutes, thus the laws regulating partnerships vary little among these states. The third common form of business operation is the corporation. In order to incorporate, the business must meet the requirements of the state 137 in which it will be incorporated. This generally requires filing a charter or articles of incorporation with the Secretary of State along with payment of a fee. Shares of stock are issued to the owners in proportion to their contribution to the business or as otherwise agreed among them. Profit sharing will be determined by the division of the stock. The most notable disadvantage of the corporate form is that all income to the shareholders is subject to two income taxes. The corporation must file its own income tax return as a separate entity and pay tax on all the money the business made. Then, when business profits are distributed to shareholders, the shareholders must include this money again on their personal tax returns. In contrast, one of the biggest advantages of the corporate form is limited liability. Each shareholder is liable for the debts of the business only to the extent of his/her investment in the company. If these assets are not enough to pay the business debts, only the company goes bankrupt, the individual owners generally do not. Financ ing . Most entrepreneurs will have to seek financing from an outside source. Before seeking funds a detailed business plan should be developed. The plan should be a concrete summary of exactly what the business will do and how much it will cost. It should account for expected revenues and expenses during the first five years of operation, with that accounting on a monthly basis for the first year and on a weekly basis for the first quarter. A good business plan will attempt to anticipate the effect of changing economic conditions. Also important is a statement of anticipated cash flow. Many small businesses fail because all the owner's capital is tied up in the business and there are insufficient revenues at the outset to pay current expenses. Personal connections, banks and savings and loan associations, the Small Business Administration, and venture capitalists are possible sources of funding. In most cases money will be hard to get without previous successful business experience. Some lenders will want an ownership interest-- equity-or an option to purchase an interest in the business instead of the borrower's debt. Banks and savings and loans are fairly conservative institutions. Before such an organization will lend money, the borrower generally must pledge enough collateral so that the lender is protected in the case of a default. This is the purpose of executing a mortgage or deed of trust when borrowing to purchase real estate. The Small Business Administration, SBA, will generally be able to offer somewhat more attractive terms than a bank or savings and loan to those who qualify. The SBA can supply more information concerning their criteria and application requirements. There are also limits as to how much money the SBA will loan to any one business. Venture capitalists are people who have cash to invest in new businesses. They lend money to small companies for growth, generally for a percentage of ownership in the business. In major cities, there are listings of venture capitalists. Some venture capitalists are associated with banks or it may be possible to locate one through your banker or local brokerage house. 138 Business Records . It should go without saying that accurate bookkeeping is essential to carrying on a successful business. With a good set of books, the business can keep track of its capital, assets, and cash flow. Thus, good accounting is important for management purposes. It is also essential for tax purposes. The Internal Revenue Service (IRS) publishes tax packets which give guidelines for keeping records and filing returns. While very large companies sometimes use dual accounting systems—one for managerial reporting and one for tax reporting — it is not of any advantage for most businesses. When only one accounting is made, it should follow a system accepted by the IRS for tax purposes following generally accepted accounting principles. It would be an advantage to hire an accountant or a good bookkeeper if there is no one in the business who has a good understanding of generally accepted accounting principles and if it can be afforded. Well kept books and competent accounting becomes especially important in the event of a tax audit. The IRS will not accept books which are poorly kept, and having them put in order could be expensive. Unfortunately for the taxpayer, the IRS will presume tax claims are unfounded unless the business can produce records to substantiate its claims. Also, one should be very careful to keep personal records and company records separated. Co-mingling of business and personal funds is generally frowned upon. I nsurance . Anyone who operates a business must be adequately insured. Irrecoverable losses may result to the real estate, buildings, equipment, inventory, and other assets of the business in the case of a fire or flood if not completely insured against such loss. Great losses may also result from theft and vandalism which could be protected against with insurance. Several factors, including the location and type of business, the condition of the premises, and the likelihood of loss, are commonly used to determine rate schedules. Rates will vary considerably with the type of business, the amount of coverage desired, and also with the individual insurer. While the business person should obviously deal with a reputable insurer, comparison shopping before purchasing any coverage can yield substantial savings. Also worthy of a good deal of consideration is accident or liability insurance. While Workmen's Compensation supplies about as much coverage as would ever be needed for the employees of the business, it provides no such coverage for anyone else. Damage suits by people other than employees who slip, trip, and fall on the business premises can be very expensive. Even if the business prevails in the law suit, the cost of defending such a suit can be substantial and it is much more desirable to settle such matters out of court and let the insurance pay for it. A general or blanket accident/ liability policy is probably the most common form of coverage. It should be broad enough to cover notonly business invitees, but also any mere licensees who should happen to be on the premises. Employers may also wish to purchase health/medical insurance for them- selves and their employees in addition to what is already provided by the compensation fund, which is not all inclusive in this area. The employer may want to obtain a group insurance policy which can be offered as a fringe 139 benefit to employees at little or no additional expense to them. Often, too, extended benefit plans are available under which the families of em- ployers and employees may also receive health and medical coverage. 7. Employment Federal Wage and Hour Law . Federal wage and hour law is provided for under the Fair Labor Standards Act. The federal minimum wage as of January 1, 1 980 is $3.10 per hour. As of January 1, 1981, it will be $3.35 per hour. If an employee works for more than kO hours a week, all hours over kO must be paid at least time and half. These are the requirements of all businesses that are regulated by the Federal Fair Labor Standards Act. There are a number of exceptions to this rule: 1. Other hourly arrangements can be made that result from collective bargaining and are certified by the National Labor Relations Board. 2. Any retail or service establishment where more than 50 percent of its annual dollar value of sales of goods or services is made within the State in which the establishment is located is exempted from the above provisions. 3. Any seasonal amusement establishment, recreational organized camps, or religious or non-profit educational conference center is exempted from the above provisions. k. Any employee (other than one who performs maid or custodial services) who is employed by a hotel, motel, or restaurant must only receive time and a half on hours worked in excess of kk hours in any work week. The federal law prohibits all employers covered by its Fair Labor Standards Act from discriminating between employees on the basis of sex. An employer must pay both sexes the same rate of pay for equal work where the same skills are required unless the difference in pay is based on a senior- ity system, a merit system, on quantity or quality of production or based on a factor other than sex. The U.S. Secretary of Labor requires reports to be made periodically. If your business is covered by this Act, you should contact the United States Department of Labor for more information. States may also have wage and hour laws regulating businesses exempted from the federal regulations. The State Department of Labor should be contacted to ascertain if additional regulations apply to a particular business venture. Withholding Taxes . Taxable wages include all payments to the employee in cash and other forms. Salaries, vacation allowances, bonuses and 140 commissions are all taxable. Travel and other necessary expenses are not taxable as wages. These amounts should be recorded separately. Good record keeping is a necessity and records of employment taxes should be kept for four years. All new employees should sign a W-4 form. This entitles the employer to withhold federal taxes from their wages. Employers who are subject to income tax withholding must file quarterly returns with the Internal Revenue Service (IRS). The IRS provides formulas for withholding tax on employees wages. Primarily, there are two federal taxes to be withheld: income tax and social security tax. However, there is also the Federal Unemployment Tax Return (FUTA) . This tax cannot be deducted from the employee's wages. This is solely the employer's responsibility. There are different procedures for the withholding of taxes of those employees who take the Earned Income Credit. The above discussion is merely a general overview of federal withholding taxes. It is advised that you contact your local IRS office for a business tax kit and other information. In many states the employer must also withhold state income taxes from the employee's wages. Check with the State Tax Commissioner concerning the specific regulations. Social Security . The employer must pay half of the Social Security (FICA) tax of each employee. In 1979, the combined FICA tax rate on each worker's wage was 12.26 percent. This meant that 6.13 percent of each employee's wages was withheld for FICA and that the employer matched this amount of 6.13 percent from his own pocket. Thus, FICA receives 12.26 percent of each employee's wages. There is an upper limit to what income can be subject to the FICA tax. This tax can only be applied to the first $22,900 that an employee earns per year. Example: An employee who earns $16,000 annually will have his whole earnings subject to the FICA tax. An employee who earns $30,000 annually will have the last $7,100 of earnings free from this tax. For an employer to report employment taxes or give tax statements to employees, he must first obtain an Employer Identification Number. Apply for the employer Identification Number on Form SS-4. Also, all employees must obtain Social Security Cards. If you are self-employed , you must file an income tax return and pay FICA if you earn a net amount of $400.00 or more. The self-employed must pay a FICA tax rate of 8.1 percent on their first $17,000.00 of annual gross income. (These figures may change after 1 980. ) The self-employed include sole proprietors, members of partnerships, independent contractors and anyone else in business for themselves. Part-time work is also subject to FICA. 141 A restaurant employer might have to pay FICA tax on his employees' tips if: 1) the employer is subject to the Fair Labor Standards Act, and 2) the employee receives more than $20.00 in tips monthly. For additional information, you can obtain the Social Security Handbook (6th ed.) from your local Social Security office or by writing: Supt. of Documents, U.S. Govt. Printing Office, Washington, D.C. 20^02 (stock #017" 070-00299-A.) Workmen's Compensation Every state has some form of workmen's compensa- tion. The West Virginia Workmen's Compensation Fund was established as a no-fault insurance system for work related employee injuries. All West Virginia employers, except for a few state approved sel f- insurers, must subscribe to this fund. Premiums are paid to the workmen's compensation commissioner in quarterly installments. The amount of the premium is based on the degree of hazard associated with each employee's occupation and the employer's safety record. The commissioner will provide each employer with rate schedules and report forms upon application to the fund. Benefits are paid by the fund directly to the injured employee. The amount of benefits paid is based on the type and extent of the injury, not on the fault or negligence of employer or employee, short of intentionally inflicted injuries. With very few exceptions, all persons, firms, association, and corpora- tions who regularly employ persons in West Virginia for the purpose of carry- ing on the industry, business, service, or work in which they are engaged must subscribe to the fund and pay premiums on these employees. Partners in a business or sole proprietors may also elect to be covered by workmen's compensation and the commissioner must be notified if this election is made. The employer's main benefit derived from subscribing to the fund is immunity from suits at common law by employees injured on the job unless the employer deliberately inflicted the injury. There are stiff penalties and fines for employers who fail to subscribe or who are in default of payments. Em- ployers are also required to keep report forms on hand and to file such reports within five days whenever notice is received that an employee has been injured or has filed a claim for compensation. Employers may not dis- criminate against any employee for receiving or attempting to receive benefits under the workmen's compensation law. The complete law of workmen's compensation in West Virginia can be found in the West Virginia Code. Other information, report forms, rate schedules, and answers to more particular questions about the administration of the fund may be obtained from the West Virginia Workmen's Compensation Commi ssioner. Child Labor . In West Virginia, no child under the age of 16 can be employed without a work certificate. The exemptions to this are employment in agriculture, horticulture or domestic service in a private home. Work permits can be obtained from the local county superintendent of schools. This will allow a child under 16 to work in certain occupations. hi Any child under 18 years of age can only work 6 days a week and no more than kO hours during a week and no more than 8 hours per day. A minor cannot be employed between the hours of 8 p.m. and 5 a.m. However, a child may perform in a concert up to 11 p.m. This would apply to outdoor dramas and the like. A minor cannot work for more than 5 hours without at least a 30 minute lunch period. Your state's Department of Labor can provide information on similar regulations for your state. 0. S.H.A. Every non-governmental business which affects commerce and employs more than a few people is covered by the Occupational Safety and Health Act (0. S.H.A.) 0. S.H.A. is congressional legislation aimed at removing potential health and safety hazards from all work environments, and especially from those industries with the poorest prior safety records. The Act itself specifically excludes some industries from coverage because the Federal Government has passed separate legislation to cover those industries. The many 0. S.H.A. regulations are put forth by the U.S. Department of Labor and they cover many different areas, some very general and some very, very specific. It is the duty of both the employer and the employee to follow all applicable health and safety standards. Employers are also required to keep accurate health and safety records. The government employs inspectors who periodically inspect the business premises and issue citations if any violations are found. Unless a violation is found which places the safety of the employee in immediate danger, a period of time is usually allotted in which to correct the defect. Penalties may be assessed up to $1,000 per violation and are mandatory for the more serious violations. Violations which are not corrected within the given time period may be subject to an additional $1,000 per violation per day. A fine of up to $1,000 per violation may be assessed if the violations are intentional. The employer is entitled to notice of all such decisions and has the right to make timely objections to the Department of Labor. Any employee may prompt an inspection of the premises by making a written request to the Department of Labor stating any suspected violations. The employer is entitled to a copy of this request but not to the identity of the employee making it. The employer may not fire or otherwise discriminate against any employee solely on the grounds of having reported safety violations. More detailed information may be obtained from the Office of Information Services, Occupational Safety and Health Administration, U.S. Department of Labor, Washington, D.C. 20210. Use of Information The use of the legal profile information will of course depend on the scope and needs of the development plan. Similarly, the initial plan of the legal investigation may be al tered--expanded or abbreviated—to reflect the needs of the planner and the community. It is recommended, however, that the organizational tools be utilized from the outset even if only a limited investigation is initially planned. Other facets of legal regulation 143 can then be added as needed without it becoming a cumbersome collection of unrelated information. An organized file of the data also insures that when changes in personnel occur the whole effort will not have to be repeated. Many of the areas of the law highlighted in the previous section will be relevant only if Jthe formation of new businesses is to be actively en- couraged by the development group. Since economic growth and employment are primary objectives of the development effort, it seems likely that new business formation may be one means of achieving these objectives. It must be noted again that the legal profile does not replace use of an attorney by the entrepreneur. It should, however, provide an overview of areas of concern he or she will have to contend with. Ideally it will remove some of the confusion, simplify the process of securing approvals, and licensing, eliminate some deadends and thus help assure that the business development can take place with minimum delays and cost. Tourism development should not be an "extremely frustrating process" that discourages "all but the most determined and wel 1 -f inanced enterprises."' If some of the frustration can be eliminated and development undertaken by community business persons adequately but not necessarily "well" financed, then the legal profile will have served its purpose. 2 1 b I d. \kk Chapter X MEASURING THE TOURISM MARKET POTENTIAL Introduction Thus far this manual has focused on the community, its resources and environments for the travel development program. We now turn to look beyond the community to identify the location, size and composition of the market for the community's travel product. A "market" is defined as the set of all actual or potential buyers of a product. The market is made up of indiv- iduals who have both the need or desire for the product or service and the ability, willingness, and authority to purchase the product. In this case, the "market" is travelers. The entire travel market is too broad and diverse in its needs for any one community or region to satisfy with its particular travel product. Consequently, a target marketing strategy based on market segmentation is appropriate. Market segmentation is the process of defining segments of the market in such a way that there is value in designing a distinct marketing strategy for a given segment. The process of target marketing requires the following steps: (1) Distinguish between different groups (segments) making up the market, (2) choose one or more of these segments to focus on, and (3) develop product offerings and marketing strategies to meet the needs of the selected target market (s). This chapter focuses on the first and second steps, the identification of market segments and selection of target markets. The following chapter, Chapter XI, discusses the development of the marketing strategy. Market Segmentation Market segmentation is the process of dividing a total market into distinct and meaningful groups of people who have relatively similar product needs and might merit separate marketing strategies. The principal rationale for using the segmentation approach is that in a heterogeneous market, a firm, organization or community is better able to develop a marketing strategy that satisfies a segment of the total market than it is to design a marketing plan that meets the product needs of all people. The goal of market segmentation is to divide a market in such a way that within each segment the individuals will respond in a similar fashion to a given marketing program. When that is done, market segmentation can aid the planner to: (1) channel money and effort to the markets with the greatest potential for profit; (2) design a product that matches the demand; (3) determine the promotional appeals that will be most effective; (k) choose advertising media more intelligently and determine how to allocate the budget among various media; and (5) set the timing of the promotional efforts to have the greatest impact. All marketing firms, like communities, have limited resources and cannot expect to market their product to every possible customer. Market segmenta- tion aids in identifying those market segments that will be most readily satisfied by the product that can be offered. The starting point for analysis of potential target markets or market segments is knowing who your present customers are and what characteristics they share. A community's most likely new customers are those persons who have the same needs and characteristics as its present customers. Primary data collection therefore focuses in- depth attention on present travelers. Secondary data are used to determine the size of various segments, and to identify segments similar to present travelers but possibly under-represented in the present group—good potential market segments for development. Not all possible segments are profitable. Five conditions must exist for market segmentation to be effective: (1) The customers' (travelers') needs for the product or service must be heterogeneous. If needs do not differ, there is little point in segmenting the market. In the case of the travel market, there are many variations in needs for the travel product. (2) The segments must be identifiable and divisible. There must be some basis for effectively separating individuals in a total market into segments that have relatively similar needs for the product. (3) The total market should be divided in such a way that the segments can be compared with respect to estimated sales potential, costs, and profits. (*t) At least one segment must have enough profit potential to justify developing and maintaining a special marketing strategy for that segment. (5) It must be possible to reach the chosen segment with a particular marketing strategy. 146 Identifying the Traveler/Customer Development of a marketing strategy requires definition of present and potential travel customers in terms of who they are, e.g., demographics, origins, purpose of travel, likes and dislikes, travel party sizes, and all factors that ultimately will determine the specific types of product, promot ion, pr ice^ and distribution appropriate to effectively market the re- gion's tourism product. Emphasis is placed on identifying the demographic and behavioral characteristics of present travel customers because they comprise the best model for marketing to new customers. Comparison with general population characteristics and behavior may also suggest changes and additions to the community's travel industry that will open new markets. The characteristics of the traveler to the region, and the available attrac- tions and tourist facilities in the region, provide the basis for a short run strategy. Long run strategy will be influenced by the nature of the potential new markets--their characteristics, needs and preferences. Evaluation of numerous variables, and a process of trial and error, is normally required to determine which characteristics of the consumer group produce meaningful definitions of market segments. Markets can be segmented in a number of different ways--there is no one right way. The discussion which follows identifies those characteristics (variables) which have been most useful in this and other travel market segmentation studies, and should reduce some of the trial and error in defining the community's best target segments. The logical place to start is with an analysis of the demographic com- position and the geographic distribution of present travelers to the area. In addition to these variables, behavioral characteristics and sociological or psychographic variables will round out the profile of the traveler. The variables that have proven to be most successful in travel studies include the following: Demographic Variables (1) Family character i stics--mari tal status, size of family, age of youngest child (2) Age (3) Occupation (4) Education (5) Income Geographic Variables (1) Traveler place of origin (2) Destination of traveler (3) Regional distribution of population (k) Urban/rural composition of population 147 Behavioral Variables (1) Mode of transportation (2) Activities participated in while on the trip (3) Length of the trip (4) When the trip was taken (season, time of week) (5) Who travels with whom Sociolog ical/Psychographic Variables (1) Reason (s) for travel (2) Factors considered most important in choosing a vacation destination (3) The influence of individual family members in the decision making process that produces particular travel behavior. Travel behavior is rarely the result of only one factor. Useful segmen- tation requires including variables from several of the above bases. For example, one segment of the travel market might be defined as vacation travelers (reason for trip), who participate in outdoor recreation activities (behavioral variable), and are younger, without children and relatively affluent (demographic variables). Another segment, known to be different in destination preferences and spending behavior, would be the family vacation traveler also participating in outdoor recreation. Several segmentation variables are used in defining these two different segments which have some characteristics in common, in this case a preference for outdoor recreation acti vi ties. A community or region that attracts a large proportion of its travelers for outdoor recreation would want to know which of these two segments it could best satisfy, and therefore which offered the greatest potential for development. The product needs--the type of recreation activities, lodging and restaurant facilities, proximity to other points of interest~-the media most likely to reach each segment, the distance traveled, and the pricing tolerances could be expected to be different for the family segment compared to the younger, childless segment. If these were two target segments being considered, the planner would want to identify the total size of each segment, frequency of travel, and comparative spending behaviors. The planner would also want to evaluate the region's resources to determine which segment can be most readily satisfied with existing or planned facilities and attractions. Only after such com- parisons and evaluations have been made could one segment be shown to be preferable to the other as one of the community's target market segments. Each division of the total market, or each segmentation variable in- cluded, defines more precisely the characteristics of the target segment, but also reduces the size of the segment defined. Thus the conditions for successful segmentation, stated above, must be carefully considered. It 148 serves no purpose to define a group so precisely that it is too small a group to be profitably cultivated. For example, to further divide the younger, childless group into marrieds and singles might create two segments which cannot be appropriately appealed to with different promotional messages or media, which do not differ significantly in product needs or spending behavior, and which, when evaluated as individual segments, would appear too small to be profitable. Thus the process of identifying target markets, or market segmentation, should be viewed not only as a process of division of the market into separate groups, but also as one of addition, adding groups with like needs or characteristics back together to form a segment that meets the criteria cited above. The results of the market segmentation study can be used to develop a profile of the typical traveler to the area. Such a profile of the West Virginia traveler is provided below. Pleasure travelers in West Virg in ia. . .can be characterized as upper income, college educated and in professional or managerial occupations. They are somewhat less 1 ikely to have pre-school children at home, although individual attractions and locations having the right product mix can find a market among this group as wel 1 . In general, there appear to be two major sub-segments of the present pleasure market. One is the outdoor recreation/ participation sports group which consists of childless, young marrieds and the more affluent older families. The second is the sightseeing-bound older family, or couple with grown children. The entertainment seekers probably are limited to a few special atractions. . . ; however, this segment could be expanded if new attractions are developed.' Clearly this is a generalization that does not describe every traveler to West Virginia. However, a profile of the target segments can be as useful for planning and marketing strategy development as the statistical break- downs from which it is derived, simply because people can get a better understanding, and "feeling" for who this traveler is from a generalized verbal description. Determining the Traveler's Needs Identifying your travelers on the basis of demographic, geographic and behavioral characteristics is the first step in identifying potential target markets. The next step is to understand the traveler's needs, motives for travel, and attitudes toward travel destinations. People travel for a wide variety of reasons: to gain an understanding of distant physical James M. Rovelstad, Behavior Based Marketing Strategies for Travel and Tourism (Bureau of Business Research, West Virginia University, Morgantown, WV, 1975), p. 19. 1^9 settings and cultures, enhance physical fitness, obtain relief from duty and routine, pursue personal avocations, build new friendships and associa- tions, and gain an educational experience which can be gained in no other way. Very seldom will the travel experience be limited to satisfying one need; rather, the trip will represent a total experience that satisfies many needs. Every traveler has a variety of physical, social and personal needs to satisfy within the framework of the travel experience. Food and shelter are obvious physical needs, but the social setting in which these needs are met will also influence the traveler's satisfaction. Clearly, the con- vention traveler's choice of lodging and restaurant will differ from the outdoor recreation traveler's choices. Needs are particularly difficult to assess since people generally are not aware of all the needs they will satisfy during a given travel experience Consequently, indirect measures must be used to assess how well your product will serve the various needs of selected target segments. Trip purpose provides some indication of the way in which travelers are likely to satisfy certain needs. The following purpose of trip categories have become somewhat standardized and thus are recommended for use in primary data col lection so that your results are comparable: (1) Business (2) Convention (3) Visiting friends and relatives (k) Outdoor recreation (5) Sightseeing (6) Entertainment (7) Other (shopping trips, trips for medical reasons, etc.) Within each purpose of trip category there are still numerous variations in traveler preferences. Consider again outdoor recreation. Some travelers will desire golf, tennis and swimming and will look for a resort with such facilities. Others will prefer more vigorous activities — Whitewater rafting, mountain climbing, skiing. Yet another group may seek fishing and hunting opportunities. And each of these activities would be described as outdoor recreation. One means of assessing traveler needs is to determine what factors influenced the traveler to select a particular destination. Pleasure trips are of particular interest since business travel and family/personal travel destinations are assumed to be determined by the nature of the business and therefore not subject to the influence of a travel marketing strategy. In the survey of West Virginia travelers, among the questions asked regarding travel behavior was "If your trip was primarily a pleasure trip, not for business or family reasons, what were the main reasons for deciding to visit West Virginia rather than some other place?" Four groups of factors were identified as influencing travel to West Virginia:^ 2 Ibid , pp. 20-23. 150 (1) Facilities — lodging, attractions, roads, directional signs. (2) Aesthetics—scenery , isolation/relaxing atmosphere, weather. (3) Time/Cost — distance from home, travel time and cost, prices for services. (h) Quality of Life — friendliness of people, lack of pollution, appearance of towns and cities. This list is not intended to be a comprehensive list of all factors considered in selection of a destination; rather, these were the dominant factors that influenced travelers to visit West Virginia. The factors, and their relative importance will vary for different regions. For example, educational/cultural opportunities or variety of entertainment might replace "aesthetics" as a factor in some regions. The important point is that these factors be identified based on what travelers to your region consider important criteria. Similarly you will want to acquire data regarding travelers' evaluations of what your community presently offers. Those factors that might be rated include such categories as (1) things to do/activities, (2) scenery/ sightseeing attractions, (3) pleasantness of the weather, (k) ease of traveling around, (5) service received in facilities and at attractions, (6) cost of things, activities, and services. The results of such rankings can then be cross classified with selected demographic variables to determine the importance of various factors to different groups of travelers. The overall rankings for these six factors combined indicated that the attitudes measured did indicate whether a person was likely to visit West Virginia. The highest rankings were given by those who fit the general demographic profile of the West Virginia traveler. To put it another way, the general demographic profile described those persons who were likely to enjoy West Virginia visits fairly wel 1 . The importance of the decision criteria were consistent with the rankings for West Virginia factors. Travelers matching the demographic profile of the typical traveler appeared to give least weight to facilities and cost factors. Aesthetic and qual ity factors were consistently given higher evalua- tion by the typical visitors. The implication of these findings for the short run state-wide marketing strategy was to avoid broad-scale emphasis on facilities and instead emphasize those attributes related to natural beauty, history, pleasantness of the mountain climate (e.g., cool nights in the summer), and quality of life factors such as friendliness and interesting life styles. In the longer run, facility and attraction development was needed to broaden the bases on which West Virginia could appeal to present and potential market segments. Matching Resources to Needs Once the market segments have been identified, and motivating factors assessed, some criteria must be used to determine segment attractiveness, or which segments are to be the target (s) for the marketing strategy. Measures of segment attractiveness are based on: 151 (1) size of the market segment (2) ability to locate, identify and communicate with the segment (3) frequency and tenacity of travel behavior in light of projected scenarios regarding the broader economic variables impacting all travel, such as availability of gasoline and general economic conditions. (4) relative spending behavior of the individuals in the segment (5) ability to meet the segment's needs given the resources of the commun i ty . The first three points above can be evaluated based on analysis of secondary data, other travel studies and economic projections. Having identified the characteristics of the market segments being evaluated, the task is then to identify comparable segments about whom such data are already known. Sources for such secondary data are discussed later in this chapter. The fourth point, the spending behavior of the segment, has been dis- cussed in Chapter VI of this manual. Determining spending behavior of different segments will require some form of primary data collection, as detailed in Chapter VI. However, much of the data collection for the segmenta- tion study and the determination of spending behavior can be done simul- taneously, as it was in West Virginia. Attitudinal and behavioral data, as well as demographic and geographic data can, and much of it should, be collected when data collection regarding spending behavior is undertaken. The final criterion for segment attractiveness is the ability of the community to meet the segment's travel needs and preferences, g iven existing or planned travel resources. At this point distinction must again be made between the short run and long run potential. The short run marketing strategy must be based on what is presently available; consequently, one or two seg- ments may appear to be the best potential target markets for the short run, while several others may hold promise for the long run after further development has taken place. In the demonstration county it was found that one of the major reasons for travel in the area was to visit friends and relatives. Since these travelers were already coming to the area, one objective of the short run development plan was to get them to visit the attractions and facilities within the community. To that end, a downtown walking tour was recommended. The tour highlighted the architectural features and historical development of the city, while simultaneously encouraging visitors to frequent downtown restaurants and retail shops. A summary marketing plan for the tour is shown in Figure 6. The community's resources, as identified in the inventory of resources (Chapter V) should be compared to the needs and interests of the target segments under consideration. Such a comparison will highlight the strengths 152 Figure 6 WALKING TOUR OF DOWNTOWN CLARKSBURG Strategy Objective: Extend stay of present visitors; draw visitors into downtown Clarksburg to increase their expenditures in the county. Primary Target Segments: Visiting friends and relatives Business and convention travelers Secondary Target Segments: S ightseers Primary Sites to Include: Amy Vance Roberts House Nathan Goff House Waldomore Library County Court House — statue and markers Churches and historic commercial bui 1 dings--Ep i scopal Church, Tree of Life, First Presbyterian Church, Empire National Bank Building, Robinson Grand Theater, Clarksburg Community Bank, Municipal Bui Id ing Coifiplementary Services: Rest--Union National Bank Plaza Re st rooms Restaurants/Coffee shops within central walking area--0ak Hall Cafeteria, China Garden Restaurant, Stonewall Sandwich Shop, West Virginia Restaurant, Gore Restaurant, Brunswick Coffee Shop Product Development Needs: (1) Personal information, inside tours, exhibits, collections. (2) Consistent hours and days when open to the public. (3) Improved maintenance, upkeep, appearance of historical sites. (k) Information for tourist regarding historical significance, noteworthy architectural features. (5) Exterior identif ication--name of the building in plain sight on sign or on building to identify it. Promotion and Distribution: --Brochure to include map and directions for self-guided tour, historical information, sponsors. Brochure should also list or briefly describe the other short trips available within Harrison County and where to get additional information about them. --Distribution through area hotels/motels, restaurants, selected service stations, public buildings, Chamber of Commerce, AAA office, and at the sites on the tour. — Public awareness program to make area residents aware of the "tour," what there is to see and do, where to obtain the brochure. (Especially important as a means of reaching the visiting friends and relatives target segment). 153 of the commun i ty and the opportunities for future development. The strengths become the basis for designing the marketing mix. Sources and Methods for Collecting Information The information needs for the analysis of the market potential have been referred to briefly in prior sections of this chapter. Secondary data can provide background information about traveler behavior, the composition of the total travel market, and statewide or national behavioral data for purposes of comparison with findings regarding local traveler characteristics. In addition, secondary data that are available at the community or regional level may supplement data collection through traveler surveys at a lower data collection cost, though frequently such data require extensive culling and reorganization to be useful to the planner. Primary data are needed primarily on the present traveler to the region, but may also be needed for potential travelers. Secondary data sources are described in this section; collection of primary data is discussed in the following section of this chapter. Secondary data are data that have already been collected by someone else for another purpose, but they can provide much of the needed information, including why, where, when and how people travel, and basic demographic characteristics of travelers on a regional, state or national level. The extent of available, relevant secondary data will depend in part on the efforts already undertaken by your state or by the industry in the state. Statewide data are extremely valuable as a standard against which to compare your community's traveler profile. Secondary data may not necessarily be previously published data. Much information is available in "raw" form, data which have never been analyzed for the purposes of travel development. Secondary data should be used cau- tiously, however. There are some inherent limitations in all secondary data, and the planner must evaluate the data's reliability and usefulness in comparison to the time and cost of securing the data or transforming it into a usable form. The following questions may serve as guidelines for evaluating secondary data: (1) Who collected the data? (Are they a reliable/reputable organ ization?) (2) Why were the data collected? (Is there a point of view or reason for the data collection that might have influenced the interpretation or presentation of the results?) (3) When were the data collected? (Are they still timely to the community's needs?) (4) How were the data collected? (Were the data collection procedures carefully planned and executed; was the sampling representative, etc. ) 154 (5) Are there any definitional differences? trip, for example.) (What constitutes a The following summary of sources for secondary data is not intended to be a complete list of all possible sources, but rather to provide some useful guidance in seeking out appropriate secondary data. Individual states, the federal government and private agencies are continuously addressing this most rapidly growing industry, so sources of secondary data are increasing every day. An extensive list of additional sources is pre- sented in Tourism USA , Volume IV, "Sources of Assistance," prepared by the University of Missouri for the U.S. Travel Service. Bibliographies and in- dices of travel literature are also beginning to appear with some regularity, such as the Journal of Travel Research Index , published in the Fall of 1979 by the Business Research Division, University of Colorado (Boulder, Colorado). 1. Government Publications The primary focus of Federal Government agencies collecting travel data is on the travel industry in aggregate, though some of the data applies to specific types of behavior and much of the data are available disaggregated to the state level. The data do provide important measures of the total travel market potential and characteristics of travelers in the United States. Sources of secondary data at the Federal Government level include: U.S. Bureau of the Census Census of Transportation National Travel Survey Washington, D.C. U.S. Bureau of the Census Statistical Abstract of the United States Washington, D.C. U.S. Department of Commerce Economic Development Administration U.S. Travel Service Washington, DC Federal Aviation Agency Air Commerce Traffic Patterns Washington, D.C. U.S. Department of the Interior National Park Service Heritage Conservation and Recreation Service Washington, D.C. U.S. Department of Transportation Washington, D.C. State governments also collect and evaluate information about travelers to the state. Forty-nine of the fifty states have a state office or division of tourism whose primary responsibility is the development, evaluation and promotion of the travel and tourism industry; Maine is the only exception. The amount of information a state has available is generally a function of its alloted budget as well as the perceived importance of the travel industry to the state's economic growth. Much of this information would be valuable to a community endeavoring to encourage the growth of its travel industry. The following publication provides a list of address for state travel offices: Survey of State Travel Offices , U.S. Travel Data Center, Washington, D.C. In addition, state offices of transportation, natural resources/recreation, employment and commerce/industrial development should be contacted for related data they may have. A recent publication for the U.S. Travel Service, 155 Tourism, State Structure, and Organization and Support , prepared by The Council of State Governments, Lexington, Kentucky (U.S. Department of Commerce, Washington, D.C., 1979) provides an overview of state participation in tourism development. Local government offices and regional development groups supported by federal, state and local governments may also have data already available that would be useful in assessing the travel market. West Virginia's Regional Travel Councils provided local input to this study. EDA designated economic development regions are often involved in collecting much of the same type of data that the community would need in its travel development planning. Certain semi-publ ic organizations also have an interest in assessing the number of and behavior of travelers in an area--to evaluate health care needs, public recreation needs, and similar community services which may be needed by travelers. An urban development focus can be found in a recent publica- tion by the U.S. Travel Service, City Governments, Tourism and Economic Development , prepared by the United States Conference of Mayors (U.S. Department of Commerce: Washington, D.C., 1978). This publication describes programs undertaken by cities to make tourism a viable part of their economic development strategies and could provide ideas suitable for adaptation in your community. 2. Private Organization Publications Private organizations that represent sectors of the total travel industry contribute numerous studies and publications to the available secondary data sources. States such as Colorado, Nevada, and California have private groups that have done much in travel research. Disney World in California, the gaming interests in Nevada, and the skiing industry in Colorado support con- tinuing studies of their customers and market potential. Organizations such as the American Automobile Association, the National Restaurant Association, and others sponsor or conduct studies of their clientele and market. Levanthol and Horwath (Philadelphia) and Harris, Kerr, Forster and Company (New York) are two accounting firms that have specialized in evaluation of the lodging industry and travel industry trends. States colleges and universities are also excellent sources for secondary data regarding the travel market. Frequently the state travel office con- tracts with a university to conduct the state's travel studies, and data not included in the publications may be available from these university re- search groups. It is important to note, however, that few universities have a school of tourism, though there are exceptions; consequently, travel research may be conducted in the school of business or public administration, or in the recreation/leisure studies area. A bit of probing with officials in your state travel division or with representatives of the schools and universities in your state will help to identify those individuals or departments which have an involvement with travel research. The University of Colorado Business Research Division houses the reference library of The Travel Research Association (TTRA) and will provide assistance in locating published articles, monographs, dissertations and reports pertaining to travel. Information regarding membership in TTRA and 156 subscription to the Journal of Travel Research may be obtained from The Travel Research Association, Bureau of Business Research, University of Utah, P.O. Box 8066, Foothill Station, Salt Lake City, Utah 84108. The directory of members, published by TTRA, provides a listing of numerous universities, private organizations, and individuals conducting travel research. The United States Travel Data Center, an independent, non-profit research organization, collects and disseminates data on travelers, and annually pub- lishes numerous reports of value in assessing the travel market. Publications include, among others, Travel Data Locator , National Travel Expenditure Study , Survey of State Travel Offices , Proceedings of the Travel Outlook Forum , and periodic special reports of current interest. A full listing of publica- tions and membership information can be obtained from: The U.S. Travel Data Center, Suite 610, 1 899 L Street, Northwest, Washington, D.C. 20036. Finally, the number of books dealing with tourism is increasing rapidly, and these sources can provide helpful background regarding what is known in general about tourist/traveler behavior, needs and preferences, as well as further guidance in how to assess your travel market. 3. Unpublished Secondary Data A number of the sources for secondary data cited in Chapter VI are also relevant to assessing the market potential and the behavior of present travelers. Traffic count data is an example of one such source. The inputs of the Regional Travel Councils have also been mentioned. In addition, lodg- ing facilities generally keep rather extensive records on their guests. For example, it may be possible to determine the state of origin, mode of trans- portation, number of persons in the party, number of nights spent, when the trip was made, and possibly the purpose of the trip based on these records. This information, if made available for evaluation, will provide important demographic and geographic data on present travelers to your specific region. These data are generally in a form that requires considerable time to summarize, but the time is well spent since the data are both timely and extremely relevant. If all guest records cannot be included in the evalua- tion, a representative random sample of the guest records can be used to develop a profile of the hotel /motel ' s guests. The nature of the facility must be taken into account; some facilities are generally more attractive to business travelers than pleasure travelers, and vice versa, but, if sufficient cooperation can be elicited from the lodging facilities in the area, a cross section of overnight travelers using commercial facilities could be developed from these data. Many camping facilities also keep records on their visitors, though the information collected is generally less complete than that maintained by hotels and motels. Certain other special activities, such as fairs and festivals, attractions and information centers may also collect relevant data through the use of guest registers. In this case, if it is not already being done, the planner may want to seek cooperation in collecting such data as number in party, state or origin, and length of trip. Data collection through this means must be limited; guests are not inclined to provide detailed information regarding their trip while simply signing into a facility 157 or event. Less control is possible with this method, and thus the data cannot be assured of the same degree of accuracy or representativeness as a carefully designed survey of travelers. Nevertheless, if some degree of consistency can be assured, this source of data can be a helpful means of supplementing other data collection methods. Collecting Primary Data Much of the data needed to identify and evaluate the market can only be obtained from travelers themsel ves--data regarding attitudes and per- ceptions, much of the behavioral data, and, of course, spending data. Some needed data, such as the size of different market segments, may be obtained from secondary sources of statewide or national data, but surveying present travelers is an essential part of identifying target markets. Chapter VI described several alternative methods for assessing economic impact: use of secondary data, surveys of households, surveys of travelers and surveys of travel businesses. Each of these methods also has some merit in evaluating the market potential. The use of secondary data, both published reports and local unpublished data has been discussed. Conducting household surveys would be prohibitively expensive due to the sample size required to reach enough travelers to your community, but data from the U.S. Census Bureau and U.S. Travel Data Center, which are based on household surveys, provide valuable aggregate data about the general characteristics of travelers. Surveys of businesses provide volume data and supplemental local data regarding some behavioral characteristics (e.g., party size, time of trip) and geographic origin. However, this approach provides only limited be- havioral or demographic data and no data regarding traveler attitudes or perceptions. Surveying travelers refers to contacting travelers while they are traveling in the area of interest. As discussed in Chapter VI, there are two approaches to identifying and contacting these travelers: interception at entry/exit points and contact at places of traveler interest or use (e.g., attractions, motels, information centers). Each has the advantage of defining and identifying travelers regardless of the length of their trip or whether they stay overnight in the region. This is particularly important to the community just beginning travel development since many of its travelers may come from nearby locations or stop only briefly on their way to another destination. If such travelers are not included when assessing the market, the community might indeed feel it has little attraction to travelers. The interception method is most feasible when there are limited exit/ entry points and substantial travel to the study region from outside its boundaries; it can be quite costly, however, since it may require a sub- stantial commitment of resources to sift travelers from commuters/ local residents. For example, the demonstration region has commuter airline service. Some travelers visiting the area do arrive and depart by air, though most travel by car/truck. The majority of the passengers utilizing the airline are business travelers from within the area. Similarly, heavy commuter 158 and pass-through traffic on the major highways makes this means of identifying travelers relatively inefficient. Further information on use of the entry/exit interception method can be obtained from Identifying Traveler Markets, Research Methodologies , pre- pa re d by Be 1 don Associates for the U.S. Travel Service (Department of Commerce, Washington, D.C., 1978). While this report describes only the interception method in detail, the discussion of general procedures, such as preparation of survey instruments and field materials, f ield admin i strat ion , quality control and data processing are equally applicable to other survey approaches and are described in greater detail than is possible in this manual . Surveying travelers at locations they are likely to frequent, the method used in the West Virginia study, requires careful selection of locations, timing of interviews and selection of respondents. The complexity of the sampling procedure will depend on the size and diversity of the region being studied. The definition of the study region may need to include nearby cities or attractions outside of your own county or area. Travelers who come close to your community, even if they haven't discovered it yet, will be good targets for future marketing. In general, a multistage sampling procedure should be used in surveying travelers at travel sites. The sample size will depend on the diversity of activities and attractions within the sample region and the desired detail of the analysis. The stages of sample selection that should be considered, though all may not be required, include the following: (1 ) Stratification (a) Sea son- -A maximum of four waves of surveys would be needed to represent the four seasons of the year. If your community's travel activity is definitely limited to one or two seasons, the sampl ing waves could initially be planned accordingly, but at some point the off-season traveler should also be included. Data collection for each wave should be done for equal lengths of time and produce nominal ly equal numbers of respondents. (b) Region--lf there are regional differences within the area, each region should be assigned a proportion of the total sample. This proportion would vary primarily according to the degree of heterogeneity of the region as a travel destination. For example, if there is a major city, several smaller towns and some rural areas, the city would have greater variety in attractions and thus require a larger proportion of the total sample in order to assure representativeness of respondents contacted in the city. 159 (c) Accessibility-While not truly a stratification stage, efficient management of the field interview team may suggest the need to organize the process with some consideration for time/ cost factors. If a more distant part of the survey region requires overnight accommodation, survey schedul ing must be planned around the schedules of available interviewers. (2) Clustering (a) Wi thin reg ion--Representati ve locales should be selected within each region. In a city area, this might include the central business district and one or more surrounding neighborhoods or recreational areas within the city. (b) Wi th in cl ustei — Representative locations (sub-clusters) should be selected within each clustei — sites such as hotels/motels, attractions, and recreation facilities. If clustering within region is not possible or necessary, then representative locations for each region should be selected. (3) Respondent Selection (a) Time/day — Interviews in an area can be scheduled from approximately 7:30 a.m. until 8:30 p.m., with site changes during the day to reflect accessibility of respondents. For example, early morning interviews might center in hotels and restaurants, mid-day interviews at recreation facilities and attractions, and evening interviews at hotels and evening entertainment sites. Interviews should be distributed over the week to assure representa- tion of all types of visitors. (b) Respondents --Random selection of respondents wi thin sites is not desirable or practical. Field interviewers should be instructed to select individuals who represent the several classes of visitors (e.g., business travelers and vacation travelers, overnight and day-trip travelers) to provide adequate representation of each class. The survey should be designed with screening questions at the beginning to assist in this selection and to eliminate local customers. In addition to personal interviews of travelers, other methods may be used in the collection of primary data about travelers. Each method can provide supplemental data at a cost somewhat less than the cost of personal interviewing and consequently the a 1 terna tives should be considered. 160 The observation method may be utilized to collect certain types of data. During one facet of the demonstration study, traffic counts were taken by observers at certain parks to determine the number of vehicles entering the park and the number of passengers in the party. License plates were also monitored and recorded to determine the state of origin of the visitors. A similar technique was used at selected information centers located near or on the interstate highways. The observations were scheduled across the week throughout the three month summer season. CETA employees and students from summer youth employment programs were used to collect the data. The resulting data were used to cross check the representativeness of personal interview data regarding state of origin and party size, and provided a means of estimating total volume of visitors at the selected sites. Another means of collecting primary data is a mail -back self-administered questionnaire given to travelers at facilities or attractions. This method is less expensive, but experience has shown it to be considerably less reliable. Response is generally quite limited and there is no means of de- termining how representative respondents are of the total traveler population, or of assuring adequate representation by traveler class. Since those who do respond may do so several days later, this method cannot be used to obtain spending data. There is also generally a bias in responses regarding satisfaction with facilities and services: those who were very pleased and those who were very displeased with aspects of their visit are more likely to respond than those who would fall in the middle between the two extremes. A ma i 1 survey of travelers has merit if there is access to an appropriate mailing list. As described in Chapter VI, a mail survey of persons requesting State travel literature was used to supplement and verify data from personal interviews for the statewide traveler study. A regional travel council, the Chamber of Commerce of attractions/facilities may have similar lists from inquiries or addresses in a guest register. Identifying travelers in this manner overcomes the sample size problem of a random household survey, but may still suffer from limited and biased response. Tabulating and Analyzing the Information Primary data from traveler surveys and other sources will have to be tabulated and summarized in useful tables, cross-classifications and traveler profiles. Data tabulation and analysis have been described in prior chapters (see Chapters VI, VII, VIM). It is important that appropriate breakdowns of the data (e.g., age or income ranges, party size designations, purpose of trip categories) be based on the designations used in published secondary data. While there is some value in having a summary of data about your own travelers, the comparison of those findings with state or national data is very important to assessing the size and potential of particular market segments. This is more readily done if comparable categories or cells are defined when the questionnaire is designed. (See Appendix I) After initial tabulation, some categories or cells may need to be collapsed to have adequate cell sizes for analysis but comparisons can be made by similarly combining categories from the secondary data references. 161 Table 22 provides an example of a cross tabulation and the summary analysis comparing traveler characteristics found in the primary data with general population characteristics obtained from secondary sources. The following summary, "Analysis of the Traveler," Figure 7, provides an example of part of the data analysis. It describes some of the differences between travelers to the Mountaineer Country travel region (the nine county region in which the demonstration county is located) and travelers to West Virginia. Primary data included data from personal interviews conducted in the region and throughout the state during the statewide study, and local data from information centers, hotel and attract ion guest reg i sters, andsimilar sources already described. The major source of secondary data used in this analysis was the first quarter tape from the 1977 Census of Transportation, National Travel Survey. (Full year data were not available at the time of the evaluation but would have been more appropriate unless quarterly comparisons could be made.) Definitional differences, particularly the 100-mile trip definition of the traveler used by the Census Bureau, had to be considered in drawing con- clusions from the data. It would be reasonable to assume, for example, that the percentage distribution of travelers by mode of transportation based on the 100-mile definition would understate the proportion of automobile travel relative to airline travel. Thus, while the analysis notes 17 percent of the travel to the state and region is by air, primary attention in the travel develop- ment strategy would still be directed toward automobile travelers who make up the large majority of the travelers. It makes little differences in the develop- ment of the marketing strategy whether the actual percentage of airline travelers is 17 percent or 15 percent—the majority of travelers arrive by car, camper or truck. A similar situation occurs with state or origin data; in that case, a range of percentage is given in the analysis (e.g., 25-27 percent of the travelers were from Ohio). Again, the exact percentage is not as important as the relative size of this segment compared to others. The existence of such problems does not negate the value of the comparative analysis as long as the definitional differences are recognized and kept in mind when drawing conclusions regarding target markets and marketing strategy. Interpreting the Information The first step in interpretation was illustrated in the preceding summary "Analysis of the Traveler," namely plausible explanations for observed dif- ferences. The second part of the interpretation is to ask "What does this mean to us?", "What implications do these findings have for the development of a marketing strategy?" Activities engaged in within the travel council region showed a high percentage attending outdoor games and sports events, and since the region included West Virginia University, this was suggested as one explanation for the higher percentage. The demonstration county, though it is not the county in which the university is located, could draw on this influx of visitors based on its proximity. 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X > Cc — 41 4-> X •— •— in 4-> •DC X > 4) 1 ID 4) CO •— > (0 C CO C LA XI 4-> O • — rn 4) (0 4-1 . m ts — 4) m c 14— a • O a c >-x c 3 3: > 4) 4-1 4-14) - O ID 3 0O O 41 *-> 4J 4) X i/> "J 0) — 4-> L. X C X 41 ID X C4)4->4)XI4-im X 41 CA 4-> c 4) CC O 4) c 4-1 c r~ 4) 4J c. u c c O 3 CA >4->xooa)'oO"- c co — O O 411 — M- CcCc<4- 4-> — 163 Figure 7 ANALYSIS OF THE TRAVELER Mode of Transportation The major mode of transportation utilized by the traveler visiting both the state and the region is the automobile or truck without a camper. Sixty-seven percent of all traffic is accounted for by this mode of trans- portation. Another 9 to 10% of the travelers arrived in the state or region via car or truck with a camper, for a total of approximately 77% of the travelers arriving by car or truck. Air travel for both the state and the travel region is a distant second, accounting for 17% of the traffic. Train and bus account for the reamining 6% of the travelers. Place of Origin Over 50% of the travelers to both the state and the region have as their state of origin Ohio, Pennsylvania, Maryland, or Virginia. Of the four states, the region attracts a higher proportion of travelers from Ohio and Maryland than does the state as a whole. Approximately 25 to 27% of the region's travelers come from Ohio, whereas 16% of the state's travelers were found to originate in Ohio. From \k to 16% of the region's travelers are from Maryland, compared to 10% of the State travelers. The relative proportion of visitors to the state and the region from Pennsylvania are almost identical in spite of the region's proximity to Pennsylvania. The proportion of travelers to the state coming from Virginia is only slightly higher than the proportion visiting the region. The percentage of travelers from other states drops off proportionately as the radius from the region increases. Education of the Traveler Approximately 80% of the State's travelers have at least a high school education, while 93% of the region's travelers completed or went beyond a high school education. The biggest difference between travelers to the region and to the State is in the category of "college degree and/or graduate schooling." Half (50%) of the region's travelers are in this group, compared with 35% of the state's travelers. Part of this difference can undoubtedly be attributed to the fact that West Virginia University and four other col leges are located in the region. Duration of Trip Two categories, the "2 to 3 night" trip and the "4 to 9 night" trip, account for approximately 61% of the travelers to the state and 57% of the travelers to the region. The proportion of travelers staying in the region is slightly higher for one night trips, lower for 10-15 night trips and the same for 16 or more nights when compared to trip lengths for travelers to the state. It is worth noting, however, that approximately 36% of the travelers to the region stayed one night or not at all (were passing through the area without staying overnight in the region), compared to 29% of the travelers to the state. Clearly one objective of the short run strategy 164 should be to extend the stay of present visitors and attract additional visitors off the highway for an overnight stay in the area. Number of Persons in the Travel Party The one and two person travel parties account for almost 80% of the travelers to both the state and the region. The data obtained from the region's Tourist Information Centers shows a somewhat different pattern. Of those registering, 40 to 50% were traveling in one or two person groups while 30 to 40% were traveling in 3 to 5 person groups. Since it is less likely that a business traveler would visit a local area tourist information center than a party traveling for pleasure, data from the regional information centers probably represent a greater than average proportion of pleasure travelers as opposed to business travelers. Nevertheless, this does suggest that one segment of the region's market is the 3 to 5 person family unit traveling for pleasure. Weekday vs. Weekend Travelers Travelers to the region differ somewhat from travelers to the state with respect to whether they travel on the weekend or a weekday. Almost 60% of the state's travelers visit the stato on weekdays, while 60% of the region's travelers visit on the weekends. It is expected that the influence of West Virginia University's weekend activities, such as football games, is reflected in the difference between regional and state weekend travel. Purpose of Tr ip Three categories of trip purpose account for approximately 75% of the travelers to the state and the region. In descending order from the largest number of travelers in a category to the smallest, these three trip purposes are: (1) visits to friends and relatives; (2) business and convention; and (3) "other." The "other" category includes any trip purpose that the traveler could not classify as business, visiting friends or relatives, outdoor recreation, or sightseeing and entertainment. This could include such things as shopping trips, personal business, trips to medical clinics, etc. Important note is the difference in the outdoor recreation category. Approximately 10 to 12% of the state's travelers visited the state for that purpose, compared to only 2% of the region's travleers. Type of Activities Engaged in While on the Trip Approximately 55% of the state's and region's travelers engaged in one of five activities: (1) visiting scenic areas, (2) hiking and walking, (3) camping, CO visiting historical areas, and (5) picnicking. A slightly greater proportion of the region's travelers visit scenic areas than is the case for the state's travelers. Among other activities engaged in by travelers, the percentage of the region's travelers who attend outdoor games and sports events is higher than the percentage for the state. The attraction 165 of WVU football and basketball games to alunni, parents, and others is be- lieved to be a major factor contributing to the higher percentage in this category. The state, however, has a higher percentage of travelers who go swimming, fishing and picnicking than the region. 166 Saturday evening. This would be particularly appropriate if motel space in Morgan town on football weekends could not accommodate the demand. Such was not the case at the time of the project, but with a new stadium under construction, may be an opportunity for the future. On the other hand, the planner could decide that since the difference can be explained by the presence of WVU, the county more closely approximates the statewide averages. The region does not attract as large a percentage of travelers for outdoor recreation as the state, though resources are avail- able and appeared to be able to support greater utilization. Thus outdoor recreation opportunities might be given greater emphasis in marketing, particularly to the family travelers. Another example of the interpretation possibilities is the higher than average percentage of college educated travelers in the region coupled with the presence of several colleges in the region. Parents of students could be a potential market for activities on the way to or from a college visit. The generally higher than average education level also has implications for the promotional approach used. Furthermore, this group tends to travel more, have higher than average incomes and thus offer good potential as a target market. Through this analysis, several market segments should have been identified. Those with the greatest potential for immediate and long run development would be selected as target markets. This selection would be based on evaluation of the characteristics of present travelers, suitability of the community's resources for serving the segments, and the potential for growth, and profit, in designing a marketing strategy for the target segment (s) . 167 Part 3 IMPLEMENTATION AND EVALUATION Chapter XI PLANNING: THE DESIGN OF A MARKETING STRATEGY The development of a marketing plan includes three steps: (1) marketing opportunity analysis (2) target market selection (3) development of a competitively effective marketing strategy The first step, marketing opportunity analysis, requires both the identification of opportunities in the travel market and the analysis of the community's unique capabilities for capitalizing on those identified opportunities. Identification and analysis of the opportunities have been discussed in terms of economic impact (Chapter VI) and the growth potential in the travel marke^ (Chapter X). Identification of the community's unique capabilities is based on analysis of the physical and cultural resources (Chapter V) , human resources (Chapter VII) and the business community (Chapter VII I). The second step, target market selection, was defined and discussed in Chapter X. The third step, the design of a competitive marketing strategy is discussed in this chapter. Components of a Marketing Strategy The four components of any marketing strategy are product, promotion, pricing, and distribution. These are the variables which the marketer can control, and each plays a role satisfying the consumer's (traveler's) needs and desires. The combination of these components is referred to as the "marketing mix." The marketing definition of "product" includes more than just a physical product such as a natural attraction. "Product" includes an assortment of features and services as well as the central product. In other words, the total product of a natural attraction may include additional products travelers expect to find, such as refreshments and souvenirs; services and public convenience facilities, such as restrooms, public drinking fountains and rest areas; and more intangible features such as quality, appearance, and ease of access. And, just as packaging of physical products provides a variety of sizes and assortments to meet varying consumer needs, travel packaging involves combining several products to make one combination product that can better satisfy the needs/desires of some travelers. Promotion is the means by which the marketer communicates with the market place. Promotion includes advertising, personal selling, sales promotions (contests, special premiums), and public relations. Pricing includes not only the determination of appropriate and profitable normal price levels, but also price adjustments, discounts, and credit pol ic ies. Distribution involves establishing and maintaining the institutional structure required to bring consumer and product together. These institutions include the wholesale and retail network through which travelers may pur- chase part or all of the product (e.g., travel agents, airline counter sales). The channel members, as the institutions or individuals comprising the dis- tribution channels are called, participate in the promotion (advertising, information dissemination), pricing, and product (product assortment) decisions. Transportation, of course, is an essential component in bringing travelers and product together, but may also be a key element of the product strategy. Fly-drive packages or bus tours incorporate the mode of transporta- tion as part of the whole travel product. Similarly, access to a facility is a product concern. Determination of the appropriate marketing mix is based on understanding the needs and desires of the target market and on evaluation of the position of competitors. Before deciding on a desired marketing mix, the community (or planner) must first decide on the competitive position the community or region wants to occupy in the target travel market. Competitive positioning can best be explained with an example. One of the attractions in the demonstration county was a historical reproduction of an Appalachian frontier settlement (the Fort). Several similar attractions were within a two hour driving radius of the demonstration county. A number of the product features, such as authenticity, craft exhibits, and special activities, were comparable. Pricing, however, was considerably lower than the most similar competitor. Analysis of the target market segment for this type attraction in this region suggested that a price increase, within the range of competition, would not be detrimental, but in fact could have a positive impact — consumers are wary of the quality to expect if a product has too low a price. It was also found that visitors to the Fort valued the personal attention of the artisan/craftsmen and students who demonstrated and explained their crafts. Thus the desired competitive positioning for the Fort was to offer more personalized service and attention than their competitors at a comparable pr ice. Competitive positioning may be based on product/feature differentiation, as in this case, or on product/quality differentiation. The strategy may be to offer better quality at a higher price — "you pay more and get more"-- better quality at a comparable pr ice--"more quality for your money" — or average quality for a lower price — "same quality for less money." Similarly, service and personalized attention, perceived images of the area, and assort- ment of features (attractions) relative to price can be used in determining competitive positioning. Short Run Versus Long Run Strategy Realistic planning must include evaluation of the time frame needed to accomplish desired objectives. Without question, this can be one of 169 the most frustrating aspects of planning. Precise timing depends on the nature and scope of the projects within the plan but the distinction should be made at the outset between long run and short run strategy. The short run is best defined in the economist's terms—the short run assumes a given set of facilities and level of capital investment. The objective of the short run plan is, therefore, to optimize the performance of existing industry businesses, utilizing the existing resources and planning/development structure or organization. The short run plan in the demonstration project was limited to those projects which could be planned and implemented within a one year period. Your planning needs may suggest an eighteen month or two year short run plan. The long run plan incorporates all those elements of the marketing strategy that require the development of new facilities. It focuses on areas where new public or private investment might be profitably undertaken. Five years is probably a realistic planning period for the long run plan. Attempting to plan beyond five years into the future introduces the potential for numerous changes in the economy, the travel market, and the goals and priorities of the community. Planning does not stop once a short run and long run plan have been formulated. In fact, continuing planning is the only assurance the community has that its travel development strategies will continue to meet its needs and goals. As one short run plan is implemented, the next should be in the planning stages, and long run plans must be continually re-evaluated and updated. Planning and development is a continuing process of identifica- tion of needs and objectives, formulation of plans, implementation and evaluation, leading to identification of new needs, and so on. Assembling and Combining the Strategy Inputs Each of the elements of the marketing mix—product, promotion, price and di str ibut ion--wi 1 1 be examined separately in the following sections of this chapter. However, these elements must be used in tandem to achieve the desired results. Each must complement the others. An example will illustrate how each of the elements can and should complement the others. Analysis of travel facilities usage rates, such as occupancy rates in motels/hotels, often suggests the need for higher utilization during the spring and/or fall seasons. One possible new product to achieve more optimum utilization would be the development of a special event such as a fair or festival during that time period. Promotion would have to include development of brochures, advertising and press releases for the festival. Pricing could include reduced lodging rates; or a package offering might be developed with appropriate pricing discounts for events, meals and lodging. Tour operators and travel agents would be contacted to further sell and distribute the festival package. Each element complements the others and is necessary if the full potential of the project is to be real ized. 170 Distribution of Responsibility for Marketing One area critical to the success of the marketing strategy is the distribution of responsibility for marketing. Everyone has experienced situations where the "best laid plans" have gone astray for lack of leader- ship and follow through. A carefully developed plan, with the specific elements or tasks of each project identified, is the first step. Using that plan, the responsibilities can be appropriately distributed. The development of a new festival, the example cited above, will serve to illustrate some of the possibilities for distribution of marketing re- sponsibility. The festival itself will need a community group to orchestrate all aspects of the event--l ine-up participating businesses, schedule various events and activities, assign booths or locations within the community for exhibitors, and so on. Widespread participation by community organizations, associations, and clubs, and the backing of the business community can, and must, by secured by the festival's organizing group. A leading hotelier, from the festival group, the planning group or simply from within the community, can be charged with the responsibility of developing an appropriate package plan for lodging, meals, and possibly transportation to the community and/or within the community. This person may also be responsible for forging a network of other area lodging facilities, restaurants, and key attractions willing to participate in the package offer. These travel businesses can then utilize their existing channel members—travel agents, tour brokers--to distribute the package plan and further promote the festival. A person from one of the planning groups or the community at large with public relations and/or advertising experience should be responsible for developing a unified promotional campaign and festival theme—advert i sing, brochure development, publ ic relations. Representatives of the local media should be involved, as observers or participants, throughout the planning phases and someone must be responsible for seeing that regular, accurate press releases are distributed to develop community awareness and support. Throughout the planning and implementation, a small (2-3 person) coordin- ating group will be needed to assume responsibility for coordinating these activities and seeing that all key elements progress on schedule. This leading group could be formed from within the development group, depending on its composition and scope of interests. A better approach, however, might be for the development group to identify the needs— e.g., the need for greater utilization of facilities in a given season, a recommended solu- tion and target market, and then, through its members contact community civic groups or service clubs to identify an interested organization. Likely possibilities include the area Chamber of Commerce, a downtown merchants' association, a local artisan or historical preservation group, and the community's service clubs. The local grass roots organization and leadership is the only means of successfully welding the community together. Once this leadership is 171 established, additional assistance can be sought from regional and/or statewide travel development and promotion groups. Product Strategy Product strategy in the short run focuses on optimizing utilization of existing facilities. However, within the existing framework, a number of elements can be improved upon to provide a more attractive product that better serves the needs of the traveler. Table 23 suggests the range of "product" considerations that together make up a total travel product. Product strategy development requires knowing what your products are (Chapter V, Inventory of Resources). It also requires evaluation of present products and the marketing mix utilized by the attractions, events and facilities that offer the product. A list of questions, "Product Evaluation Guidelines," is provided in Appendix III. These questions are grouped in rather narrow categories (e.g., access, parking) and questions within each category may overlap. Not all questions or categories may be applicable to each individual facility, attraction or event to be evaluated. The weight that would be given to different items on the evaluation list will differ. A formal rating system could be devised, such as 1 point for a drinking fountain or public telephone, 2 points for access, and so on, but this is probably not necessary. If a historic home is not open to the public, the facility's role in the plan will be clearly limited — a walking or driving tour might be routed past it if it's not out of the way. Major versus minor concerns become evident as the evaluations are completed. Furthermore, the need for business and community participation and support will influence the direction of the final strategy: a facility or attraction highly rated by objective criteria can still fail to generate needed support and enthusiasm. Thus, while an evaluation of specific travel product offerings was conducted, a highly developed rating system for each attraction was not used in the demonstration project. 1. Business Involvement Throughout this manual the need for business and community involvement has been emphasized. Unfortunately the developer cannot simply command such cooperation. Means of promoting awareness of industry membership and travel's contribution to the community are discussed in the next section on promotion. The problems involved in product development are closely akin to those encountered in a downtown revi tal i zat ion effort. Each of the businesses is, first of all, an independent business. Each has its own particular internal operational problems, practices and traditions. As seemingly simple a change as a modernized store front sign may evoke considerable resistence such as "my father and his father before him" used this sign, "generations have grown up" recognizing and patronizing this business with this sign, and so on. Extended hours of operation, a product feature often needed 172 Table 23 TRAVEL PRODUCT VARIABLES attractions, events, facilities tours programs and activities --for children --for older travelers — for special interest groups appea rance/upkeep pe r sona 1 i nf orma t i on/ i n terp re ta t i on se r v i ce/ho sp i ta 1 i ty hours/days of operation season of operation gift shop food service/picnic facilities restrooms rest areas (benches, chairs) dr inking founta in publ ic telephone emergency services (first aid) accessibility of fac i 1 i ty /attract ion accessibility for handicapped/older persons transportation to and within parking facil i ties on-site signing 173 for travel development as well as downtown revi tal i zat ion, elicits concerns over the cost/profit potential and employee relations. Who will work evenings or weekends? Will there be enough new business to warrant the extra costs? Business involvement is further complicated by the fact that these independent businesses operate in competition with their counterparts within the community. Traditional rivalries and suspicions among the hoteliers or restaurateurs, for example, cannot be taken lightly. Competition is, after all, the basis of our economic system and the belief in its value tends to be particularly strong among small, independent business persons. Never- theless, the cooperation of the individual hotel/motel operators, or service station operators, etc. will be necessary for a total community effort. Finally, there is the problem of exclusion, intentional or accidental. Overlooking a business in a given sector (lodging, food) should be avoided with careful planning. On the other hand, some businesses in every sector simply do not provide a product suitable for the traveler. Every community has its run down hotel or taverns with questionable clientele, its service station with dubious service, its restaurant with inconsistent quality in food or service. Members of the community know which establishments these are, but the traveler will not. Some of these establishments will have no interest in building a traveler clientele and thus can be safely ignored. Others, probably the marginally suitable establishments, may want to be included in travel development plans and, if excluded, may stir up discontent and resentment within the community. It is recommended that these problems of cooperative action, overcoming competitive instincts and exclusion be approached one small step at a time. A successful weekend special event with voluntary participation can overcome some of these fears. The success of the outcome will lead to new ventures. Those businesses that did not participate will see that the others benefited from their cooperative effort and be more willing to become involved in the next event. All businesses should be advised of specific quality standards required for participation, e.g., private bath for each guest room, open evening hours, emergency medical assistance, and size requirements if working with group tours; marginal businesses should be given an opportunity to meet these standards if possible. The more objective these standards, that is, the more easily compliance or non-compliance can be ascertained, the fewer the problems likely to result. Clearly the corner diner with seating for 25 cannot accommodate the 40 people in a bus tour; however, in a brochure designed for the individual traveler, the same diner may be suitable for listing in a comprehensive listing of restaurants. Purchase of advertising or membership does not solve the problem of excluding non-traveler businesses. Neither do the normal health and sanita- tion standards required to operate a business. Only evaluation of the product and the judgement of the planner can determine the relative costs of including (customer dissatisfaction) versus excluding (owner/citizen di scontent) marg inal businesses. 174 One short term objective must be to take some initial steps in establish- ing standards and encouraging cooperative efforts. Only in the long run, however, can businesses be expected to fully overcome long standing competitive attitudes and practices. Determination of which products should be the focus of the marketing strategy provides an opportunity for the involvement of both travel busi- nesses and the community. Even with all of the analysis of product, target markets, and competitive position, there still comes a point of "where do we start" to identify specific projects to achieve our objectives. The approach used in the demonstration project served the two fold purpose of identifying potential projects or product ideas and of building community/business support. A "brainstorming" session was held with the Travel Development Council. In brainstorming, all ideas, even unlikely "far-out" ideas, are discussed, allowing one idea to flow into the next. An informal atmosphere and a relatively small group (8-12 persons) encourage open discussion. A series of such sessions may be needed to involve different individuals and promote the broad base of participation needed, while maintaining a small size brainstorming group. All of the ideas discussed at the brainstorming session were then organ- ized and the discussion summarized by a member of the planning (research) team. A brief rating form was developed for use in evaluating each idea in terms of feasibility, interest and potential profitability. The summary of ideas and the rating forms were then sent to the participants at the brainstorming session and other interested community/business leaders for their anonymous evaluation. A sample of the form used and description of the analysis of the ratings are included in Appendix III. Only after such an evaluation process should any ideas be put aside. The product development activities need not be limited to the ideas thus generated, nor do all the ideas have to be immediately incorporated into the development plans. The development group or area travel promotion group may suggest avenues overlooked, new ideas may evolve, and some projects will fail to materialize. The planner will also have to evaluate these ideas in terms of how well each f i ts specif ic object ives, existing resources, target segment needs, and the desired competitive position. One word of caution-- if the development area encompasses several communities within a region, special effort should be made to include re- presentatives of each community in the brainstorming process. At each stage in the development of the specific projects of the plan, an effort should be made to see that the overall plan is balanced, to the extent possible, among the communities. It will also be up to the planner to determine which of the projects are feasible for the short run plan and which belong in the long run plan, or in a subsequent short run plan. Projects enthusiastically endorsed in the rating process should be given priority to the extent possible if they are compatible with overall strategy, since these clearly have the best potential for community support. 175 2. Community Involvement There are a number of areas where community involvement and participa- tion will be essential to the success of the product strategy. Many of these are long run development efforts such as beaut if ication of older areas, development of new parking facilities and improving access by widening streets or re-routing traffic flow. In addition, projects involving the restoration, preservation and maintenance of historic sites or buildings will require a long term commitment. A number of community resources may, however, be incorporated in the travel product strategy with only a short run commitment. Among these would be better utilization of existing public facilities, such as the library, cultural activities, and historic sites already restored. Often such public facilities can increase their service to the traveler by providing inter- pretive programs regarding exhibits, local history, or community founders; by extending their hours of operation; by improving exterior and/or interior maintenance and providing access to comfort facilities. Suggesting these options are available does not mean they are easy to implement. Limited budgets are common in the operation of such facilities so volunteer assistance should be sought. A senior citizen's group might have just the history buff needed to weave yarns of the community's past. Local service clubs, and their youth groups, could take on a rejuvenation project of painting and cleaning up the grounds. Volunteers from the his- torical preservation group could design and make appropriate historical costumes for historic site interpreters. All possible channels for volunteer aid should be explored. Not only does the traveler benefit from these volunteer services, but the community as a whole gains, and the travel development effort builds additional community involvement. Another area of community development is making community activities available to the traveler. Much of the effort in this area is promotional — informing the traveler of the local garden clubs' shows, the community theater group's performance times and dates, the civic orchestra's program. Product related concerns include access and directions to such events (civic theaters and high school auditoriums are often outside of the downtown busi- ness district), parking facilities, appearance of the facility, and similar product strategy elements. Community activities may or may not be suitable for the traveler, but they should be evaluated as part of the community's resource base. Finally, community involvement may take the form of accommodations and services temporarily made available during special events or activities. Streets can be closed and traffic re-routed for a festival parade or to create a pedestrian mall area on a temporary basis. Extra police and fire protection, ambulance and emergency medical personnel are a community commitment. Opening public buildings to provide comfort facilities, pro- viding supplemental parking areas, and similar considerations of the traveler's needs can be arranged for in the short run with community support. In the process, the effects and implications of possible long run developments may also be evaluated. 176 3. Human Resources Development Included as elements of the total product are personal information/ interpretation and service/hospitality. The travel industry, a service industry, relies on interrelationships among people—service providers and customers. Thus human resources — employees, managers, and entrepreneurs— are of vital importance. One aspect of the need for human resource develop- ment is the need to increase awareness, understanding and appreciation of the industry by the employees and employers of the industry and it is this area that most directly impacts the customer's perception of the product J The recommended method of improving employee and employer awareness, understanding and appreciation of the travel industry, particularly the regional travel industry, is the implementation of a training program designed for this purpose. Such a program was designed, implemented and evaluated as part of the demonstration project. The lack of awareness of both the importance of the travel industry and of what there is of interest to a traveler is common among community residents and, to a considerable degree, even among those directly involved in sales to the traveler. One objective of the training program, "The Hospitality Approach," is to provide a mechanism for overcoming this lack of awareness among front line people who serve the traveler. It is these front line service workers who are most frequently approached for information about what there is to see or do in the community. Many of the things which are available seem so common place to the local resident that they may not be recalled in response to the traveler's question. Friendliness, helpfulness and quality of service bring travelers back for return trips—and provide word-of-mouth promotion when visitors tell their friends about their trip. A second objective of the training program is, therefore, the development of better interpersonal relations between frorjt line worker and tourist, and to a lesser extent, between employee and employer. Public serving industries, in general, and travel industry businesses in particular, tend to employ many people in customer contact positions, with little, if any, entry level training or experience. The result is that awareness of the mechanics of good interpersonal relations is limited or non-existent. Moreover, since the majority are small busi- nesses, many of the owners or managers are probably also lacking any formal training in these skills. In addition, the very nature of travel business puts unusual pressures on employees and employer alike in their relationships with one another and with the customer. Peak demand periods during the day or on certain days of the week, frequent employee turnover, seasonal employment, and the Human resources development also includes providing employment opportunities, skills training programs for entry level positions or advance- ment, and the matching of human resources with employer needs in a growing travel industry. These subjects are dealt with in the separate companion report, "Employment Opportunities for the Chronically Unemployed." 177 tourists' increased expectations when away from home make personal relations in travel industry businesses particularly fragile. The Hospitality Approach was designed as four 2i hour sessions, but the curriculum is flexible enough to accommodate different scheduling needs, such as three 3 hour sessions. The optimum class size is 15-25 participants but larger groups can be accommodated if several leaders are used to facilitate small group activities. Figure 8 is an outline of the course. The course was designed to be implemented for a group of industry businesses, representing various sectors of the industry. Thus cases and examples include, among others, service station, restaurant and motel situa- tions. The biggest drawback to this approach is the organizational effort required to contact businesses, secure their commitment, and arrange a suit- able time, day and place for the training sessions. Responsibility for such coordination may rest with either a lead business or with a regional or area travel promotion group. Businesses with a large number of employees may want to use the program for their employees. It is strongly recommended that the individual (s) conducting the program have a close association with the travel industry and some training and/or experience in teaching or personnel training methods. If one such individual is not available at a nearby university, vocational school or extension office, or from within the industry, a team approach could offer the strengths of two or three individuals and incorporate both travel and training expertise. A unique feature of the West Virginia Hospitality Approach is a film called "Gateways or Bridges" produced specifically for the course. The film cross-cuts between a humorous presentation of a customer service si tuat ion and description by a narrator of the needs, growth and potential of the industry and the importance of the service worker. It challenges service workers to upgrade their skills, pointing out that their role in tourist development is very critical. Evaluation of the hospitality program confirmed that media presentations, such as this film, small group activities and involvement of the participants (role playing, "case" discussions) generate the most interest. An overly "academic" approach should be avoided. The same points that might be mentioned in a lecture can be developed through discussion with the group. Situations participants-have personally experienced can be the basis of discussion and the means of reinforcing or pointing out effective techniques in personal relations. Evaluation of the program pointed out the need for clearly identifying the needs, problems and objectives of the participating businesses. A wealth of material is available for a hospitality program, so the relative emphasis on particular points should reflect the concerns of these businesses. In one instance the lead business responsible for setting up the program was primarily concerned with the negative approach used by their employees. Order taking at the snack bar was concluded with "Is that all?" Emphasis and repetition in the program was therefore concentrated on the positive 178 Figure 8 THE HOSPITALITY APPROACH Course Outl ine Session I. You and Your Industry A. Hospitality Training: What is it? 1 . Introduct ion 2. Why train for tourism? 3. Overview of the course B. "Gateways or Bridges" Film introducing the industry and importance of the individual's role in the industry C. The Travel Industry ~. Who is it? (Travelers and service workers) 2. What is it? (Various businesses make up the industry) 3. When and where? (Characteristics of local/reg ional traveler and travel industry) 4. How do they come together? (Role of advertising, travel agents, travel councils, etc.) 5. Why is it important? (Economic impact, jobs) D. Your Role in the Industry 1 . You are the host! 2. Importance of your job --to the tourist --to your business --to your fellow employees Session II. Your Customer A. Understanding the Tourist 1. What do you expect as an individual? 2. What motivates the tourist? 3. What are the traveler's special needs? B. Developing Good Customer Relations 1. Understanding behavior 2. Techniques of listening 3. Giving directions • C. Problem Solving in Human Relations Session III. Your Product A. What is Your Product ? 1 . Hospi tal i ty 2. The business/resort, the region and the state B. Who Sells Your Product ? 1. Basic sales techniques 2. You can't sell what you don't know! (area worksheets/quiz) C. Evaluating Sales Techniques Personal evaluation forms related to sales techniques or evaluation of practice sales situations 179 Figure 8 THE HOSPITALITY APPROACH (cont. ) Session IV. Your Community A. Debriefing of the Community Tour B. Developing Your Community for Tourism 1. Meeting the tourists needs 2. Developing a good public image 3. Developing good public relations C. Do You Know Your Community, Region, State ? Discuss answers for worksheets on the state, region, or community. D. Evaluation of Course and Wrap Up 180 approach--"Wil 1 there be anything else?" "Would you care for dessert (beverages)?" The management was pleased with the results and will probably provide the program for their employees again next year. In other situations employee-employer relations might need greater emphasis, or awareness of things to do in the area. The important point is that the particular focus desired be identified by the participating businesses, and the course tailored to emphasize those points. The test and evaluation of the training program also pointed out the importance of participation by the business managers. Invariably questions regarding policy arise and policies differ among businesses. A management representative can clarify the pol icy--and inthis framework managers are often more willing to explain the reasons behind policies than when under fire from employee and/or customer. Participation by management al soexpresses very forcefully their interest in their employees. Finally, the use of worksheets and handouts deserves mention. The old "grade-school" workbook approach may seem inappropriate for use with adults, but in fact "homework" assignments sparked their interest and chal- lenged them, thus increasing their participation. The worksheets included a "test" about the state and fact finding assignments about the region and their own facility. Additional worksheets might include self -development evaluations, and case situations requiring solution. It is also suggested that a certificate be given each participant following completion of the course. This reinforces the stated premise of the course: the individual employee is the key to successful industry development. It gives the service worker tangible recognition for his/her effort to improve hospitality skills — recognition that is all too often otherwise lacking. Evaluation of the course by participants has been generally positive. Time of the day influences their perceptions as to whether or not the course is too long—meeting from 3:30 to 5 p.m. when the participants are anticipat- ing going home makes the course seem too long. Generally, participants themselves found problem solving and customer relations information most useful (most directly related to their jobs) and travel industry data least useful. This simply reemphasizes the lack of awareness of the relationship between their jobs and the industry as a whole. Even though they have the greatest difficulty relating information about the industry to the i r individual performance, such information will begin to broaden their outlook and provide a framework within which their job takes on increased importance. The greatest success has been experienced with this program when employees are required to attend and are paid for their time. Voluntary, unpaid participation fails to attract those employees most in need of this training. The training program described was developed by the researchers at West Virginia University for the Vocational Education Division of the West Virginia Department of Education. Vocational Education has sponsored the programs conducted in the state. A similar arrangement may be possible in your state. If not, other sponsors for the programs must be sought. The 181 benefits warrant cooperative support by your participating businesses; industry associations or travel development organizations. travel Other schools, colleges and organizations have also developed hospitality training programs which can be applied to your community's training needs. Additional guidelines for such programs, and excerpts from several programs, are provided in the U.S.T.S. publication Tourism USA: Volume 111, Implementation, Visitor Services , prepared by the University of Missouri TVffiV. Additional information on hospitality training programs can also be obtained from: Division of Vocational Education West Virginia Department of Education Charleston, WV Michigan State University Cooperative Extension Service East Lansing, Michigan Mississippi State University Cooperative Extension Service (Box 5^25) State College, Mississippi 39762 k. Optimizing Faci 1 lities Use Optimizing the use of existing facilities is one of the objectives of the short run plan. It is important to recognize that "optimum" may not be the same as "maximum" usage. An optimum facilities usage rate would be, by definition, the "most favorable or conducive to a given end" (Webster's New Collegiate Dictionary). Therefore, the goals of the community will influence what is optimum. Other capacity limiters (e.g., parking, traffic limitations) and quality of life considerations (e.g., desire to retain a wilderness atmosphere) will play a role in determining the optimum usage for a given facility. The first step towards achieving more optimum utilization of facilities is an analysis of when facilities tend to be underutilized. In the short run, additional facilities cannot be added, so increasing demand for lodging, food, or recreation when these facilities are already heavily utilized is counterproductive — the traveler is frustrated by crowds and inconveniences, and the community is equally frustrated by the impositions of the traveler. The evaluation of the community's resources must include identification of those periods when facilities of all types are underutilized. The most likely areas of concern are (1) weekend vs. weekday utilization, and (2) seasonal fluctuations in utilization. Most destinations have a peak season, traditionally the summer months, though winter recreation areas may have only a winter peak, or both summer and winter peak seasons. The months on either side of the peak seasons offer the best potential for a focused development effort to achieve more optimum utilization. 182 The utilization of all facilities likely to be needed by the traveler should be considered before promoting higher utilization of one type facility. For example, a weekend "get-away" package developed to increase hotel occupancy would need to include activities for the traveler. If the community's parks and recreation facilities are heavily utilized at that time, then other activities, within the hotel or outside of the immediate community, will need to be identified for the sake of both the community members and the travelers. An example of a package tour plan successfully implemented by a hotel in the demonstration region is provided in Appendix III. It was developed primarily to increase weekend occupancy, the time when this hotel experienced underuti 1 izat ion. Other short run options to promote better utilization in slow seasons or periods include such things as fairs and exhibits (crafts, baking, gourmet cooking, home shows), festivals (Spring flowers, Fall foliage, harvest festivals), and "get-away" packages centered on a theme (ethnic heritage, special occasion themes). Numerous examples could be cited, from Buckwheat festivals to rodeos, historic home tours to Washington's famed Cherry Blossoms. The key to success in such efforts rests on identifying a theme that is based on characteristics, heritage, activities or natural beauty indigenous to your ( commun i ty . A German festival or weekend package, with German foods, folk dancing and music, is pointless if you don't have a German heritage in your area. But every community or region can draw on one of the fol lowing : Ethnic background History of the region Industry or agriculture of the area Hobbies, crafts, indigenous or popular in the region Recreation/outdoor activities Natural beauty, especially unique features of given season Sports events/activities Cultural activities (music, drama) Another area of concern related to optimizing facilities use is identify- ing and making use of facilities that may be appropriate for more than one type activity. For example, one facility may be able to double as an ice skating rink in the winter, and a roller skating rink in the warmer months. Or, an area may be appropriate for winter camping as well as summer camping. Winter trail hikes could utilize the same paths as spring, summer and fall hiking. The development of such potential may, in some cases, be possible in a short term time frame. On the other hand, it may require investment for alteration of the facilities, and thus have to be included as part of the long term plan. One means of achieving more optimum utilization in the short run would be extending the hours of operation or season of operation. Such product 183 changes would have to be supported with promotional efforts, pricing incen- tives and adequate distribution systems. Clearly one of the reasons for shorter hours/seasons of operation is limited demand. On the other hand, demand cannot be stimulated for facilities that are closed. Finally, optimizing facilities use may require long term development of complementary facilities. Achieving better utilization of a recreation area may, for example, require additional lodging or restaurant facilities, or upgrading/expansion of existing facilities. 5. Events and Attractions Events and attractions are an essential element in any product strategy designed to draw travelers to the community. There are areas of product improvement that can be implemented for both events and attractions in the short run. Caution is advised, however, regarding how much can be expected in the short run. A festival or other event normally needs time to achieve its maximum impact, and, if it only occurs once a year, two to three years will be needed to build its reputation. One of the events receiving assistance from the research team in the demonstration project was a West Virginia Celebration Days Festival. Numerous organizational and administrative problems, as well as the logistics of locating exhibits, moving people into and through the area, and securing community support confronted the founding group in their first year. During the second year, assistance was provided by the research team in determining the format and information needs for the brochure. In addition, the public relations efforts of the research project helped to generate additional business support and resident interest. And, not to be over- looked, learning from the first year's experience helped the planners to avoid some problems: exhibits were kept in a smaller geographic area while some entertainment events were moved to the perimeter, committees were better coordinated, and so on. Improved attendance resulted, though this festival has not yet reached the hoped-for total impact. Several factors may continue to limit the success of this festival. First of all, the rather general heritage theme has been heavily used in the region and in West Virginia. Secondly, the timing of the festival in early June is based on West Virginia history rather than an evaluation of what travelers to the region might be looking for at that time, or the area's needs to better utilize facilities or increase tourism. Another area festival was initiated in the demonstration region in 1979 with the leadership of a group of prominant businessmen--an Italian Heritage festival that focused on Italian food, drama, operas and folk- dance. It was held over the Labor Day Weekend and attendance surpassed all expectations. Theplanners initiated the idea, enlisted support and consulted several University faculty members with expertise in travel, mar- keting and cultural heritage, to determine the potential acceptance of such a festival and secure assistance with brochure development (Figure 9) and other marketing needs. 184 Figure 9 FESTIVAL BROCHURE v 3 .5 2 5 «3 The timing of this festival, Labor Day Weekend, highlights the question of competitive versus complimentary scheduling. Two other major craft shows/ festivals were already established on-going Labor Day events within the nine county region of the area travel council. Such competition could be detrimental to the new event, or helpful. Travelers to the region may appreciate and be attracted by the variety of activities available within a given region at the same time. The three festivals could benefit from joint press releases and publicity, or package tour offerings. Only by carefully measuring the attendance at each, however, can the planners be certain that one is not growing at the expense of the other. It is advisable to keep attendance records for all events as accurately as possible. Even if a new competing event is not introduced, declining attendance at an event may indicate the need for a fresh approach, additional features, or a whole new theme. Older events may need to be phased out as new ones are developed to take their place. A major unique attraction in the region was the Fort mentioned earlier in this chapter. The Fort is an excellent example of the impact a coordinated travel development/planning effort can have in achieving the objectives of individual attractions or facilities in the area. The short run recommendations which were implemented included: (1) development of a new brochure, (2) addition of occasional food/beverage (soft drink) service, (3) addition of benches for resting, (k) broader selec- tion in the gift shop, (5) improved restroom facilities, (6) extended weekend hours, (7) additional student craftsmen available for personal con- tact with visitors, and (8) improved high signing. In addition, an admission fee was established (rather than a donation) and better admission control was initiated. Some additional programming was featured and increased publicity was used to promote those programs. In other words, steps were taken in the short run to improve all areas of the marketing mix — product, promotion, pricing and distribution. Among the long range plans were the addition of regular food service featuring early American food. This, however, could not be accomplished until water lines were installed. Modern restroom facilities was identified as the most significant immediate need, and this too depended on the water lines. Thus, the installation of the water lines became the first priority for both short run and long run development. In another situation, securing funding for such a project might require a longer run strategy; in this case, funding was approved and the water lines and restroom facilities installed within the one year short run time frame. The research team served as a catalyst to initiation of hoped for improvement. The added impetus of a major tourism development project for the area, with the potential for economic benefits clearly identified, made the difference in securing approval and funding for the water lines. Your travel development plan could similarly assist individual attractions achieve their unique goals, for the overall benefit of the community and the travel development program. 186 6. New Facilities Development The addition of new facilities to the existing product/resource base is a long run product development strategy. It should not be undertaken until other facets of product development and analysis of resource avail- ability and utilization have clearly indicated the need for new facilities. Too often the obvious short term improvements and potentials are overlooked in favor of a major building project. Haste in initiating such a long term approach often leads to failure — either in obtaining funding or in generating demand for the facility. The preceding discussions of product evaluation, business and community involvement, human resource development and utilization of facilities are equally applicable to new facilities development. It is strongly recommended that several aspects of a short term strategy be implemented prior to in- itiating new facilities development, to allow time to build a record of success, market demand, and community support. Both private and public commitment will be required to successfully add new facilities to the comr mun i ty ! s resource base--regardless of whether that facility is a hotel /motel, theater, parking lot or civic/convention center. And both private entre- preneurs and public agencies will need evidence of growth and future potential growth, a plan or strategy for future development, and on-going leadership to carry a long term project to completion. These can best be demonstrated through the types of short term plans discussed in this chapter and the market and community analyses described elsewhere in this manual. Beyond these guidelines, each new facility project will require its own detailed plan and a development strategy. Major hurdles, such as securing land, private investment and/or public funding, building permits, tax approvals, and so on should be carefully scheduled. Promotional efforts must be planned for each phase. Specific plans should be made to tie-in the new facility with existing products and promotion, pricing and distribution strategies. It is worth noting that while the planning and development process is very slow, changes in the planning environment occur very quickly. A new convention center/hotel complex was among the long term developments under consideration in the demonstration project. The defeat by the city's voters of the needed bond issue eroded overnight much of the enthusiasm for planned travel development. Recouping this loss meant rebuilding con- fidence, interest, and commitment. The planning process leading to the bond issue vote took well over a year; the effect of the defeat was felt immediately. The importance of enthusiasm for a project should not be under- estimated, but it should not be allowed to short circuit the planning process either. The idea for the convention center immediately struck a responsive chord in the first planning session of the Travel Development Council. The individuals who could influence its development, both private interests and public officials, went to work on the idea the next day. In terms of the planning process, their activity was at least several months premature. 187 The long run plan had not yet been formulated, other alternatives had not been evaluated and short term marketing and public awareness plans had not been implemented. Their enthusiasm generated significant support and commitment to the idea, but better planning of the total strategy and/or delay of the bond issue vote when economic conditions were abruptly threatened (closing of a major plant appeared imminent), might have provided a positive vote at a later time. Not every travel development strategy will require major new facilities. Many potentials exist in conversion of facilities to new use, varied uses and better utilization during non-peak periods of existing facilities. If new facilities appear warranted, each phase of development should be carefully implemented following the same guidelines as the total development effort. Promotional Strategy Promotion is the communications function of a marketing strategy. Specifically promotion refers to communication undertaken to inform, persuade and/or remind potential target markets about products (travel industry re- sources). To have an effective promotional strategy requires a controlled, integrated program of the following promotional elements: 1 . Publ ic Relations 2. Advertising 3. Sales Promotions 4. Personal Sel 1 ing In this section the first three elements are discussed as they apply to designing a promotional plan for travel and tourism. A discussion of personal selling by channel members is presented in the distribution strategy section of this chapter. 1. Community and Business Public Relations Publicity is any non-pa id commercially significant news or editorial comment about ideas, products, or institutions. An outcome of favorable publicity is public relations. Public relations is defined as those functions concerned with informing the public of activities, policies, etc., and attempting to create favorable public opinions. Any and every organization that deals with people has public relations, ranging from good to bad, whether it wants it or not. Therefore, organizations should not be willing to allow such a perishable commodity as the good will of its potential cus- tomers to be formed on the basis of chance but should develop a public relations strategy. The need for a community and business public relations program was clearly indicated by both the household survey (Chapter V I I ) and the busi- ness survey (Chapter VIM). Limited awareness of the industry, the community's travel resources, and the impact of travel in the community was found among both the businesses and the residents. Recalling that the promotional strategy is the means of communication, and given the importance 188 of community support, the public relations program should be the first element of the promotional strategy put into place. Such was the case in the demonstration project. The first segment of the public relations program implemented in the project was a weekly column, "Out and About," in the local newspaper, des- cribing attractions and things to do in the area. The column ran for six months, appearing in each Wednesday evening edition. It was written by University journalism students as part of a Public Relations Internship Program. Sample columns are provided in Figure 10. A small sample telephone survey was conducted at the end of the test period to evaluate readership of the column. Of those contacted who read the paper, 53 percent recalled having seen the column and 38 percent could recall one or more specific articles, indicating that they had read the column. The most common characteristics of those who read the column was the presence of children under 16 years of age in the home. Press releases were also submitted to the paper whenever newsworthy events or activities could be highlighted. Press release preparation and the preparation of a travel calendar of events are continuing programs of the regional travel council. Meeting weekly deadlines with new material is challenging. It requires both researching area attractions and a journalistic writing style that will interest readers. It is recommended that one or two individuals with journalism backgrounds or journalism students be given responsibility for this part of the promotional strategy. It is probably beyond the time re- sources of a travel promotion group and requires individual responsibility for meeting publication deadlines. The second part of the public relations program was a speakers' bureau tested on a limited basis to inform businessmen and residents of the impact of travel and tourism in their community, the objectives of the travel develop- ment project and, to a lesser extent, the attractions within their community. A presentation suitable for civic, fraternal and social club meetings, in- cluding a brief slide presentation, was developed, with members of the research team making the presentations. While only a few groups could be reached in the time available, the pilot program generated interest by other community groups. The "speakers bureau" presentation has been continued by the travel council. Radio and television can also be used effectively in the public relations program. Two forms of coverage are available: brief spot news features on traveler attractions, and participation in public service pro- grams by members of the development team and local area leaders interested in encouraging the growth of tourism. The media respresentat i ves were most enthusiastic and helpful in planning appropriate topics and format. Par- ticipation by area leaders is recommended but difficult to schedule due to the many demands on their time. Interest was expressed in the idea of brief news spots but implementation was not tested due to weather conditions that prevented access by camera crews to the attractions. 189 Figure 10 Public Relations Program 2— Clarksburg Telegram, Thursday, Oct. 19, 1978 "Out and About" is a new, weekly column that will describe things to do and see in Harrison County and other areas of Central West Virginia. It is written in conjunction with a West Virginia University research project focused on travel and tourism in the area. The old cliche about New Yorkers never visiting the Statue of Liberty is equally true of many local area residents. A recent survey by WVU found that 90 per- cent of the county residents interviewed could name only one, or none, of the attractions in the county that would be of interest to visitors. In fact, this region has a wealth of historical and natural attractions, exhibits, museums and recreation opportunities. Take a break with the family this week to go "out and about" in Central West Virginia. Many people are aware that Cyrus Vance, current secretary of state, was raised in Clarksburg. Few realize, though, that his mother, Amy Roberts Vance, lived in and restored the oldest structure in Clarksburg. This 170-year-old house is an interesting building, rich in local history. The Amy Roberts Vance house, located at 123 W. Main St., was built in 1803 by Jacob Stealey, Clarksburg's first tanner. Land for the house was pur- chased from George Jackson, and it was constructed with bricks made on the property. After Jacob Stealey died in 1841, his son, John Stealey, lived in and owned the house until 1881, when he sold the property to Nathan Goff Sr., a prominent local citizen. Several changes were made on the building after 1891. The back wing was replaced by a frame portion and various improvements were added to the front. Today, there is a two-story addition on the back of the house. Mary R. Hornor Goff, Nathan Goff's widow, owned the house for 23 years, from 1885 to 1908. The house was in her estate from 1908 till 1932. During this time, the structure was used both as a boarding house and a doctor's office. The building was purchased in 1933 by Amy Roberts Vance, who restored it and lived in it for 34 years, until her death in 1967. In 1967, with the aid of an $11,000 contribution from Mrs. Vance's sons, Cyrus and John, the Harrison County Historical Society purchased the house. The balance of the payment was raised by public solicita- tion. Today, the Amy Roberts Vance house is maintained as a public museum and serves as headquarters for the Harrison County Historical Society. There are six rooms in the house, along with the previously mentioned two-story wing. The downstairs includes a dining room, parlor and drawing room, while the upstairs consists of three bedrooms. Mrs. Vance's kitchen has been converted into a boardroom, with a small library. A sink and stove also remain in this room. Many unique displays are shown in the house. Among those on loan to the historical society are: the surveying instruments from three generations of the Haymond family, Governor Johnson's sofa, which came from the David Johnson home in Bridgeport and an end table believed to have belonged to the "Stonewall" Jackson family. Interested persons may see the house for 25 cents admission. Tours are available with three days prior notice. Admission for members of the society and school groups accompanied by a teacher is free. Hours of operation are from 2 till 4 p.m. Saturdays. Other tours can be arranged by appointment. 190 8-B— Clarksburg Telegram, Wednesday, Oct. 25, 1978 Out and About. . . For those interested in taking a look at the past, Fort New Salem, located in Salem, offers a pleasant in- sight into settlement life during the period 1750-1850. A day at the fort gives a visitor the chance to relive the unique mountain heritage of West Virginia. For New Salem reproduces a typical early frontier settlement with numerous log cabin craft shops and residences con- taining reproductions of furniture, tools and other artifacts from the colonial period. The fort was reconstructed to preserve the mountain folk arts and way of life. The fort staff consists of Salem College faculty, master craftsmen and students. Among the eight full-time employees are five master craftsmen who teach and demonstrate their art. Volunteer organizations lend a hand in maintaining the fort. The season officially opens on Memorial Day Weekend, and runs through mid-December. However, during the third weekend of April, the fort opens its doors for the Salem College Heritage Arts Festival. Several weekends are highlighted throughout the season. The Seventh Day Baptists, who settled the Salem area around 1792, are honored in the Memorial Day opening. Moving into the summer, Independence Day, the Fourth of July, is marked by a traditional celebra- tion. The fort rings with the shouts of frenzied patriots, while the militia is brought out, exhibiting typical dress and firearms of the day. A feature of the Labor Day celebration is a military "showing of strength." Along with the local defensemen, militia from around the state and- neighboring states are represented at the festivities. 191 Also, there are two harvest celebrations, which take place between late August and October. The most recent was the Fall harvest and Applebut- ter Stirrin' held Oct. 14 and 15. Activities at this celebration included can- dle dipping, soap making, quiltmaking, roof pat- ching, corn shucking and pumpkin gathering to name a few. The celebra- tion was a big success, ac- cording to John Randolph, director of the fort. "We sold all the applebutter within the same day it was made, and everyone seem- ed to have a great time," he said. The next event con- nected with the fort will take place at the Mid- dletown Mall in Fairmont on Nov. 3 and 4. Area craftsmen and enthusiasts are urged to attend and see craft displays and exhibits from Fort New Salem. A Christmas Festival at the fort rounds out the year's events. This year's festival runs from Nov. 29 thr'ough Dec. 17. Workshops for the public are offered from Dec. 4 through 10. These workshops include instruc- tions on recreating a colonial-type yuletide at- mosphere. The actual Christmas celebration oc- curs Dec. 16 and 17. Tradi- tional settlement customs, such as music, folklore and the large candlelit tree, are observed. The fort also offers a heritage arts program through Salem College. Students enrolled at Salem can obtain a degree in the heritage arts through this program. A number of adult education workshops in the heritage crafts arealso offered to anyone interested in enrolling. Tours of Fort New Salem are available for large groups, provided they are arranged one week in ad- vance. Donations of $1 for adults and 25 cents for children are requested. Group rates are available. Hours of operation are from 10 a.m. to 5 p.m. Saturday, and 1 to 5 p.m. on Sunday. Fort New Salem can be reached by taking 1-79 to exit 119; then, US route 50 West to the Salem College exit, route 23. For reservations or fur- ther information write: Fort New Salem, c/o Salem College, Salem, West Virginia. Finally, business newsletter inserts and articles can be used to reach a variety of residents and business persons. Contacts with state and regional businesses would be needed to identify those companies that send a news- letter to their employees or enclose informative materials with billing statements, employee's paychecks, or other regular mailings. The Chamber of Commerce and members of the planning group should be able to provide leads to businesses that use such materials. Articles regarding the economic impact and importance of tourism, with a local, regional, state, or national focus, may be used in such a newsletter. The appropriate article, as deter- mined by the geographic distribution of the mailing, can be tailored to the interests of the readers and submitted to the companies for inclusion in one of their mailings. The Area Chamber of Commerce would be one of the better groups to approach initially if they make regular mailings to their members. The public relations program is an important element of the short run strategy, but may be even more important for long term development strategies. Any facility development requiring public approval, such as a bond issue election, will have to focus considerable effort on informing the community. In addition to the public relations tools already described, public meetings and media coverage of planning meetings should be used to increase community awareness and build support for the project. 2. Advertising Choice and Use of Media . Advertising is a paid form of non-personal communication about an organization and/or its products that is transmitted to a target audience through mass media. This section concentrates on the task of selecting the correct form of mass media to reach the target audience. A media plan sets forth the exact media vehicles to be used and the dates and times that the advertisements will appear. The goal of such a plan is to reach the largest number of potential customers per dollar spent. The major types of mass media used to help achieve this goal are television, radio, newspaper, magazine, outdoor, and direct mail. Specific attention is given to outdoor and direct mail advertising later in this section. Media selection is a complex process. The initial step requires the definition of one or more potential target markets. The more specific the target is on the bases of geography, age, sex, income, attitudes, and in- terests, the more precise the media selection can be. The second critical factor is the amount of money available. When an ad on television may cost over $200,000 and one magazine ad may cost over $60,000 the media buyer must be aware that limited funds call for careful selection of the media and markets. The major task of the media buyer is to match markets with media at a given cost. The actual selection of a medium is usually a three-step process. The first step involves the determination of the general class or classes of media to be used: television, newspapers, radio, outdoor, magazines, and/or direct mail. Second, a choice has to be made between various categories within a particular class of medium. If television is selected, which kind 192 of program would reach the desired audience? At what time? On what network? Finally, the particular program must be chosen. For example, if newspapers were the medium selected the decision would be between morning and evening newspapers. For radio stations, the decision would be AM versus FM, which FM station, which time, etc. An evaluation of the strengths and limitations of each media is presented in Table 2k. Media personnel and literature are good sources of information for media buyers. Sources where, .media information may be obtained are: Audit Bureau of Circulations Traffic Audit Bureau Business Publications Audit of Circulations Standard Rate and Data, Inc. Advertising Checking Bureau Broadcast Advertisers Report Cooperative Promotions . Tourist promotional programs are designed to motivate people to travel away from their home community. Achieving this goal is not an inexpensive task; it requires a substantial promotional budget that generally is not affordable to individual private business or small communities. Therefore, to compensate for the high cost of promotional activity, cooperative promotions are recommended. One way to initiate a joint promotional effort would be to develop a travel package combining several attractions, transportation, accommodations and other services for the traveler. Such an effort would not only sell the total product and provide focus for the promotional campaign, but would also serve to reduce the promotional costs to the individual travel businesses part ic ipating. There is no limit to the number of different package plans that could be formed. In the demonstration project, a two-day package was designed which included a lodging facility, a restaurant and two attractions. A number of other packages in the state have also been designed to provide the traveler with a total experience. In every case where packages are offered, the participating businesses share in the cost of promoting that package. In most areas there are organizations which will assist private busi- nesses in formulating travel packages. The travel councils in West Virginia have as one of their prime responsibilities the task of working with private business in recommending potential packages that would be of interest to travelers. The Chamber of Commerce is another source where assistance may be available. In some states, specific "matching funds" are provided by a government tourism agency for community and regional tourist promotion. Test Advertising Plan . The test advertising plan was designed to test on a limited basis the effectiveness of a regional advertising campaign. 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ID X) CL a. a. co O o XI 3 o 195 Nine cities within 200 miles of the demonstration region were selected for the advertising. Those cities included were: Akron, Canton, Cleveland, and Columbus, Ohio, Baltimore and Cumberland, Maryland, Charleston, West Virginia, Pittsburgh, Pennsylvania, and Washington, D.C. These cities con- stituted major segments of West Virginia's primary travel market--metropol i tan areas in neighboring states. They also provided a mix of major cities and smaller, less populous cities within the market region. The advertisements focused on a weekend in "Mountaineer Country." The ads offered special rates for a hotel /motel package and a discount on the admission rate for unnamed attractions. (The ads did not identify either the attractions or the hotel, since the advertising was conducted as part of the research project and it was felt that a general advertisement for the entire demonstration region would be more appropriate under the cir- cumstances.) .At the time, gasoline was in short supply, so all the advertis- ing pointed out the proximity of north central West Virginia to the city in which the ads were run. The regional market and budget constraints suggested radio and news- papers as the appropriate media. Copies of the ads and radio script are included in Appendix III. Each newspaper ad included a coupon to be returned for additional information. The radio ads provided the address to write to for further information and also referred to the newspaper ad that would appear the following Sunday. Different addresses, varied by attaching a letter suffix to the post office box number, were used to allow identification of the city in which the ad was run. The coding system did not allow identification of those people who heard the radio ad and responded with the coupon from a newspaper ad, but this could be* done by offering radio listeners a bonus if they cross out or circle something on the newspaper ad. The newspaper ads were run in Sunday papers. Radio spots were spaced throughout the preceding week in both prime and secondary time periods. Since little is known regarding West Virginia traveler's listening or reading preferences, the selection of radio stations and newspapers was based on reaching the largest audience or circulation. Persons responding to the advertising were sent the following materials: a cover letter describing the package features, brochures describing each of the attractions and the hotel /motel package and, discount coupons to each of the two participating attractions. The coupons were color coded by city, and provided 1/3 to 1/2 off regular admission prices for the family. The color coding was used to allow determination at the conclusion of the study of the city from which persons using the coupons originated. The use of the theme "Almost Heaven" also allowed differentiation of the hotel's package rate customers from those responding to this advertising plan. No other advertising of the hotel's package plan was being done concurrently, so those using the plan were predominantly those who responded to this advertising campaign. 96 To further draw attention to the region, press releases by the Mountaineer Country Travel Council were sent to the newspapers in conjunction with the paid advertising. Again the address was varied so that requests for information generated by the press release could be distinguished from the other responses. The specific attractions featured in the press releases differed, but the focus remained one of a weekend in Mountaineer Country. S ign ?ng--0utdoor Advertising . One of the most visible of advertising media is outdoor advertising. The advantage of outdoor displays is that the message reaches the public 2*t hours a day, 365 days a year. In addition, outdoor messages greet visitors from other places with information helpful to them and to local businesses. Signs tell travelers where to stay, where to eat, where to get gas, where to find entertainment and so on. Signs are a welcome mat to the public and a part of the total product offering. They indicate a certain quality, image, and style in addition to the information provided. Signs should be in good taste and accomplish the desired objective. Prior to constructing any sign exterior to a business establishment, however, management should first address the legal implications of erecting the sign. A copy of existing statutes and regulations concerning outdoor advertising may be obtained from your state Department of Highways. Local ordinances must also be checked. Brochures and Li terature--Direct Mail Advertising . Most people are familiar with direct mail advertising. As an advertising medium, direct mail has the advantages of preselection of potential target markets, low cost, and flexibility. One form of direct mail that relates directly to the travel industry is brochures. Brochures constitute some of the most effective forms of printed ad- vertising, but it may be better to have no printed literature than a poor brochure. The content of a brochure can vary in presentation and number of different attractions presented, but every brochure should anticipate travelers' needs and address these in the brochure. Once the product and market have been defined and the brochure prepared, the next step is the selection of a responsive market. There are two major sources where mailing lists of responsive markets may be obtained. Previous visitors comprise the most important mailing list. Another good source of potential visitors are inquiry lists from the state travel office, Chamber, or attractions. A system for bulk distribution of brochures to travel agents, AAA offices and other establishments displaying travel brochures is essential and less costly than direct mail. Many restaurants, lodging facilities, service stations, and attractions would gladly display a rack of brochures, if these were made available. In West Virginia this is an important service provided by the regional travel councils for their members. Both general brochures developed by the council, and individual member's brochures are distributed and mail inquiries for literature are filled by the travel councils. 197 Sales Promotion . Sales promotion is a term that has been used to de- scribe those marketing activities, other than personal selling, advertising and publicity that stimulate consumer purchasing and dealer effectiveness, such as displays, shows and exhibits, demonstrations, coupons, and various non-recurrent selling efforts not part of the ordinary routine. Sales pro- motion efforts complement the other promotional programs and, by providing materials, information, and support, can tie them together into a unified communications effort. Sales promotion provides a direct enducement which offers extra value or incentive to purchase the product. To complement the test advertising campaign described above and stimulate action, discount coupons, a form of sales promotion, were used. Other forms of sales promotion techniques which are often used for travel promotion include: Exhibi ts Displays Fi 1ms Contests Shows (travel shows) Premiums Coupons k. Levels and Location of Promotional Responsibilities A promotional program is more than the sum of its parts. It is a "synerg i sm"--a system of interrelated elements in which total system per- formance reflects not just individual element performance but also their interdependent contributions. One of the most significant challenges facing the promotional strategist is the design of a program which integrates ad- vertising, personal selling, sales promotion, public relations, selling and packaging. The level and location of the responsibility for developing and implementing a total promotional program must be given careful consideration . A majority of travel related facilities and attractions are small busi- nesses with limited promotional funds and expertise. The likelihood of success by a small business in designing and implementing a promotional campaign is limited. The objective, therefore, is to coordinate the pro- motional program through a cooperative effort. There are several alternative means to accomplish this task. First, several private businesses can integrate their resources to promote the product offerings. The major problem with this alter tive is coordination of the promotional campaign. With this approach it ispossible to reduce the final cost to each participant, but the expertise needed to design and implement a program is usually not there. A second alternative would be to have a local agency such as the Chamber of Commerce serve as the coordinator for promoting travel in the community. With this approach the capability to design an effective program is present but the campaign may be too narrow in scope. 198 Third, a campaign could be designed which promotes a region within a state. In West Virginia the Regional Travel Councils are responsible for such promotion of the travel related facilities and attractions in their respective counties. This particular organizational structure deals strictly with the marketing of regional travel and tourism and has personnel with the needed skills to design and implement an effective regional promotional campaign. When compared to the previous two alternatives, a large potential market can be reached. State agencies themselves can serve as the coordinating body for pro- moting travel in the state. A state has the funds and knowledge to develop an effective campaign, but the primary objective of the state campaign may be too broad for a private business to experience any direct affects. Ideally, to generate the most effective promotional campaign, the state agency along with regional organizations (travel councils), local communities, and private businesses should work together in promoting travel and tourism. Finally, it is strongly recommended that professionals be used in the development and placement of advertising and, to a lesser extent, develop- ment of brochures and the other promotional tools. An advertising agency has the necessary expertise in media selection, ad development and placement. Before undertaking any campaign, it is worth the time to explore the costs of using an agency. In addition, printers can often provide graphic arts/lay- out assistance at minimal cost if such assistance is requested. Although these professional resources may sound too expensive, the time saved and the potential for greater effectiveness of the campaign certainly make it worth the effort to check into their prices. If professional assistance cannot be secured within the promotional budget, student assistance, through a graphic arts, advertising, or journalism department in a nearby college or university, may be a feasible alternative. Price Strategy Price strategy includes the determination of appropriate and profitable price levels and price adjustments, discounts and credit policies. It is not the purpose of this section to discuss the technical aspects of setting prices to assure that costs are covered and a profit made, or that the firm maximizes profit or breaks even. Rather, the role of pricing as a marketing tool and the relationship of pricing to the other strategy elements is the focus of this section. 1. Function of the Planning Organization Pricing, perhaps more than the other elements of the marketing mix, is difficult to coordinate and impossible to direct from a centralized posi- tion e.g., by the planning group. Individual businesses must ultimately determine their own prices, and their decisions will be influenced by opera- ting costs, desired return on investment, franchise guidelines or fees, "what the traffic will bear," economic conditions and numerous other factors outside of the control of the planner. It is important, therefore, that the following pricing strategy recommendations be used as guidelines for 199 evaluation and planning, and as possible focal points for education and public relations programs. The most important functions of the planning organization in pricing strategy are (1) to be aware of the importance of a pricing strategy that complements the other marketing variables (2) to identify the times and situations where promotional or package pricing would be needed and appropr iate and (3) to make the potential benefits of special pricing known to community businesses, through educational and public relations programs. 2. Fitting Price/Quality to the Market The potential variations in the price/quality relationship were mentioned earlier in the discussion of competitive positioning. The first step in developing a pricing strategy is to determine what price/quality relationship your target market expects. Price tends to be associated with a particular level of quality, based on competitive offerings in a geographic region, positioning of major franchise establishments, and past experience of the traveler. Some market segments seek, and expect, the price advantages of "rough" camping or rustic cabins. Others prefer to pay for the ultimate level of' service. In either case, it is important that the traveler be correctly informed about what to expect. If the total package of meals, room and service is not clearly defined, the price may appear too high. Conversely, if a "rustic" cabin is simply described as "economy facilities," the traveler may be rudely surprised to find no running water or central heat. Pricing, and promotion of the facility's features and price, must accurately reflect the quality. Price/quality, in turn, should be appropriate to the desires of the target market, and selection of the target market may be limited by the price/quality image attainable for a given facility or community. Continual evaluation of customer satisfaction with the quality and services of a facility is a valuable means of monitoring the travelers' perceptions of the price/quality relationship. In-house questionnaires or complaint forms can help to identify problems before they become widespread. It should be recognized, however, that such forms tend to elicit only the very positive and the very negative reactions. Few customers with "middle of the road" reactions bother to complete such questionnaires. Nevertheless, as a means of spotting problems that evoke such strong negative comment, these forms are of value, and action should be taken at the first complaint, not delayed until "a majority" of the customers are complaining. 3. The Role of Package Pricing Package pricing is becoming increasingly important as travelers try to budget their spending more carefully, economize on gasoline, and still enjoy a vacation with some built-in variety. Tour groups are an increasing travel market, one which should not be overlooked in developing a marketing strategy. 200 Package pricing is partly art and partly science. Several good sources are available which describe how to calculate package and tour prices, so that complementary rooms/meals, discounts and a reasonable profit can all be covered. Two such sources are: Discover America Package Tour Handbook Discover America Travel Industry 1100 Connecticut Avenue Washington, D.C. 20036 "Selling the Tour Operator" "HSMA/Group Tour Information Manual" Hotel Sales Management Association 362 Fifth Avenue New York, NY 10001 Travelers expect a tour package or vacation package to cost no more-- and preferably less — than the total value of the elements if purchased sep- arately, jhe qual ity of a package in relation to the price is a major consideration. To allow for the tour operator's mark up and travel agent's commission, two key participants in the distribution and sales of package plans, each participating businesses must provide the lowest possible rate at which a reasonable profit or return can be made. What constitutes "reasonable" will depend on many circumstances, but in seasonal or weekday/ weekend slack periods empty facilities generate no revenue. A saleable package plan that covers its variable costs and makes a contribution to fixed costs and profit may be better than one which is priced too high to sell. Pi str ibut ion Distribution of traditional "products" to customers evokes a clear image of physically moving the product to a point where the customer can purchase it. Clearly the travel product cannot be moved to the customer, but travel marketers and planners will be concerned with making their product available and accessible to their target market segments. 1. Distribution Concepts in Tourism Distribution of tourism involves (1) dissemination of persuasive communication, (2) searching out and communicating with prospective customers, and (3)shaping and fitting the available offerings to the buyers' require- ments. The institutional structure through which traveler and destination are brought together includes the wholesale and retail network of tour operators, travel agents, airline counter sales operations, AAA and so on. The channel members, as the institutions or individuals comprising the distribution channels are called, participate in the promotion, pricing and product decisions. Consider, for example, the role of the travel agent. He advertises various package offers as well as his own services, promotes numerous des- tinations by making brochures and other information available, communicates 201 with prospective customers, and proposes various alternative configurations for a trip's transportation, lodging, schedules and activities. Similarly, AAA offices provide such services to their clients, tour packages for their prospective customers. These activities constitute the distribution of the tourism product. Clearly, then, an important part of a tourism marketing strategy is to develop and utilize these channels of distribution. In West Virginia it was found that AAA offices, travel agents and tour packages were being underutilized, and thus increased efforts to make personal contact with these people, to provide brochures for their distribution and to develop and distribute an informative "Sales Guide" of facilities and attractions in the State was undertaken. Reponsib i 1 i ty for initiating such endeavors can rest with the state's travel office or with regional travel promotion groups. Individual businesses may develop or be associated with a distribu- tion network of their own choosing, but smaller businesses frequently are not able to make such an effort. A particularly important role for the development group will again be educating area businesses regarding the opportunities for better distribution and how to take advantage of these opportun ities. 202 Chapter XI I IMPLEMENTING A PLAN The goal in preparing this manual and for the demonstration project was to provide community and business leaders with specific approaches and steps for the tourism development process. Preceding chapters have de - scribed the rationale for development, the character of tourism, and organ- izational, institutional and governmental relationships and roles. Then the inputs and information required to design a development plan and strategy to meet the specific needs of the host community were defined and methods and sources of obtaining and interpreting this information were provided. Chapter XI provides the structure and procedures for putting the pieces together into a specific strategy. This is described under the broad aegis of a marketing strategy for creating a tourism "product" and delivering it to the right buyers at the right place and time and at the right price. An integrated and comprehensive strategy is the recommended approach, since it can be amply demonstrated that the synergism created will truly lead to a whole that is greater than the sum of its parts. One of the disappointments in the demonstration project, the failure of the community to support a bond referendum for the proposed convention center/hotel complex demonstrates the point. While there undoubtedly were many factors that contributed to this result, there is little doubt that the community backers of the project attempted to move ahead with it pre- maturely. A lack of community awareness and understanding of the role and potential for tourism was known to exist from the measurements of community and business attitudes (Chapters VII and VI 11). Development of awareness and appreciation of the impact of tourism was needed before seeking support for the bond referendum. Additionally, the businesses to be affected and/or displaced were not involved in the process until the plans were nearly com- plete. Thus the possibility of receiving the support of many of them was lost. This chapter, in completing the description of the planning and develop- ment process, focuses on the administration, management and evaluation of the plans. It also provides information on where and how to obtain opera- tions and capital investment. Location of Responsibl i ty Economic growth and job creation through travel and tourism development will necessarily impact many parts of a community's physical, economic, social and cultural structures. The involvement of a widely representative group of local leaders, called the Travel Development Council (TDC) in the demon- stration project, was a most important part of the planning and development process. But it is not generally feasible to obtain the commitment of large amounts of time over an extended period of time from such a volunteer group. It is particularly important, therefore, that both continuity and continuous leadership and management be vested in some person or organization that can devote this level of effort. Initial leadership and administration for tourism development in the demonstration county were assumed by the project team at West Virginia University (WVU) with the substantial involvement of the executive director of the regional travel council. A less direct, but vital role was played by the Travel Development Division (also a co- sponsor of the WVU project) of the Governor's Office of Economic and Community Development (GOECD) . As more of the major parts of the plan were defined, the responsibility of WVU shifted more to that of advisor and interpreter, while leadership was taken on by the travel council and public and private sector individuals in the community. The latter are likely to be the starting place for development initiative for most users of this manual. But wherever the responsibility rests, those having it will have to be prepared to provide a substantial time and resource investment. Volunteer organizations probably will not have adequate amounts of either for the full length of the process. There will need to be people who are paid for their effort, even though the contributions of volunteers will be vital. The optimum location of responsibility for coordination and administra- tion of tourism development is that which will have the widest base of support in the community. This will depend on the unique characteristics of each place. The following are some possibilities in U.S. communities. City /County Government Agencies Economic Development Plann ing Touri sm Author i ty Mayor's (or equivalent) Office City /County Manager's Office City/County Council (if paid and full time) Non-Prof it Organizations Chamber of Commerce Educational Institution (public) Convention and Visitor's Bureau Travel Development Organization Private Sector Firms (if large and broadly respected to commun i ty--usual ly a major share of local employment) Other organizations may accept responsibility for parts of the task but for a variety of reasons probably cannot effectively assume the central role. Among these organizations are: 204 State Government Agencies Economic /Travel Development Agency Departments of Commerce/ Industry Statistical and Research Units Parks, Recreation, Natural Resources Highway Department Aviation Authority Local /Regional Government Agencies (if not principal organization management) City/County Government Agencies (if not principal organization management) Local /Regional Non-profit or Quasi Governmental Organizations Regional Economic Development and Planning Agency (e.g., in one of the EDA regions) Regional Commission (e.g., Appalachian Regional Commission) Service Clubs (e.g., Womens Club, Kiwanis, etc.) Educational Institutions Youth Organizations (e.g., Boy Scouts) Business or Trade Organizations Local Businesses Limited to contributions of assistance in areas of special competence (e.g., a bank may assist in a financial analysis) Scheduling and Monitoring Progress Schedule . Wherever the responsibility for managing the planning and development process is lodged, it will be vital that a schedule of activities and events, or milestones and their interrelationships be developed. While changes in plans and schedule will be necessary or desirable as the project moves along, developing the initial schedule will be invaluable in bringing out potential problems and identifying components of the development that might otherwise be overlooked until they become real and perhaps insurmountable problems. A schedule, when prepared in graphic form, also becomes a tool for recording and monitoring progress. Figure 11 is a sample of a simple format used in the initial stages of the demonstration project at WVU. 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CD 3 ■•-> c re +-> O +-> c CU +-> r— S- J o 3 O O +•> 3 > ai ca <5 oo ai cu 1- re re l/> o 4-> a> re E e a: _i _j +-> re E CU O0 00 CM _i 4- O 3 cu OJ -i; 00 re •— S- E UJ re o. cn s_ re a. c >- — oo o • • • -t-> E CU o . 3 QJ re i ??r" • p- n-i (/I OcT = 1/) w O t>8 03 J3 o oo >—> oo u- re -O o o-or s: lo £l| ^ i= re *■* CM CO *3- IT) to r--» oo O". 1 • ■ 206 for each of the long range and short range development activities would need to be added as they are defined. More sophisticated systems for scheduling and monitoring are available and merit consideration. One of these is PERT (Program Evaluation and Review Technique), or CPM (Critical Path Method). In addition to fostering the early identification of the various essential parts of the plan, this method forces attention on the interdependency among the activities and events, so that managers of the development project will know whether a delay in completion in one activity is going to have a serious effect on another or on the project as a whole. A formal and comprehensive schedule which includes all of the significant activities also is a useful starting point for estimating the people and other resources that will be needed. And since these are always limited in amount at any given time or over a particular time period, this will help planners to avoid designing schedules that can't be completed on time because of such resource limitations. Need for Options: Planning for the Unexpected . Good scheduling will help to reduce the uncertainties as the development process moves along. But all elements of a tourism development plan are dependent on human per- ceptions and behavior, from that of the travelers, to the local resident, and these cannot be controlled. Moreover, vagaries in the weather, changes in government policy and laws, and other factors are difficult or impossible to predict very far in advance. Any of these can and may either block some part of the initial plan and/or open up new options. The failure of the initial effort with the Clarksburg Civic Center left a major gap in the overall plan. In fact because this part of the development was accelerated, there was little opportunity to assess the impact of its failure on the overall plan in advance. As this manual is being written at least two options are being considered—returning to the voters to reconsider the enabl ing bond referendum, and attempting to develop the facility at another location in Harrison County. It would have been better to have identified and analyzed these options before going ahead with the initial referendum. The principal danger in not developing and evaluating options is that failure or substantial delay in one significant element can so discourage or disorient both planners and the community that the entire plan will fail. If tourism development has been properly identified as a high potential source of economic growth and jobs, it is unlikely that its success will be contingent upon one specific element. Having alternatives in place will help to assure that these goals will not be thwarted by a problem in one part of the process. Evaluation Measures . In addition to monitoring progress on each phase of the development effort, the planner will want to periodically evaluate the effectiveness and success of those measures implemented. Appropriate evaluation measures must be linked to the specific program pieces implemented. 207 Figure 12 outlines appropriate evaluation measures for the different aspects of the travel development program. Each of these measures has been described in preceding chapters as each program element was introduced. Maintaining Interest and Momentum . Chapter XI described ways to develop and maintain support among the residents and businesses in the community. It is equally important that the dedication and commitment of the various parties directly involved in implementation be maintained. Methods for achieving this probably will vary with the situation and among the different entities. Those having a strong direct commitment and potential for gain, e.g., a developer of a new motel or owner improving an existing business, probably need the least attention once they have started their effort. Volunteers, such as members of the TDC, need some sort of regular rein- forcement. This could be in the form of a newsletter or other report on progress. But they also need to feel a sense of continuing participation. This could range from soliciting their ideas for specific components to asking them to provide publ ic endorsements for the strategy. The various organizations that may assume responsibility for limited parts of the project probably will function best if their tasks are narrowly defined and of relatively short duration. But they will also need rein- forcement because these tasks are likely to be overload work for them and their employees. The best and possibly only effective method of reinforce- ment for these participants will be the regular personal contact by the person(s) managing the plan. All participants in the development will be reinforced and motivated by public recognition. Experience in the demonstration project, and in other similar activities, shows that local news media are willing and pleased to provide this recognition. The media also play one of the major direct roles in the strategy to develop local awareness, acceptance, and support. Providing them with such information about the progress of the effort on a regular basis serves the dual function of providing reinforcement to the subjects of the coverage and increasing community awareness and support. Sources of Funds Many of the federal and state agencies mentioned in Chapter III and elsewhere in this manual have programs which can provide either grants or low interests loans for tourism development. It should be noted that in general receiving these funds will be more likely if such funds are to be used as part of an overall and integrated plan than if they are just funding a single element unrelated to an overall plan. One strategy that may be effective is to submit a single proposal to several agencies/programs for a jointly funded project. Federal agencies in particular tend to favor making grants or loans when there is a combination of federal, state, local and private sector commitment. Guidelines are not specified here, but informal discussions with the staff of various agencies suggest that all else being equal there is a significant increase in the probability of favorable evaluation of 208 Figure 12 EVALUATION MEASURES Phase of Development Plan Economic Impact Commun i ty and Human Resources Business Environment Market Potential Marketing Strategy Program Element All travel development efforts--overal 1 impact Community awareness programs Interest in tourism employment Media programs/newspaper col umn Business awareness programs, business participation Financial institution support Identify target markets and estimate size and potential Overall results Eval uation Measures Repeat economic impact measure Repeat relevant sections or al 1 of household survey Readership/1 istener survey of residents based on the media exposure (l)Repeat business survey or rele- vant portion of it; (2)Membership levels in travel council or participation in TDC act i vi ties; (3)Acceptance or use of mailers by businesses (l)Repeat financial survey; (2)0bserve wi 1 1 ing- ness to provide capi tal or plan- ning assistance Repeat traveler sur- veys and analysis of travelers (l)Economic impact measure (2)Analyze results of follow-up- traveler surveys in 1 ight of target groups sought 209 Figure 12 EVALUATION MEASURES (contd.) Phase of Development Plan Program Element Product new products/new features Hosp i ta 1 i ty Training programs Uti 1 ization Promotion Evaluation Measures (l)Assess business actions in making recommended prod- uct changes, addi t ions (2) Evaluate the number of new events/act ivi ties/ package offerings scheduled or being promoted Monitor participation in programs in terms of number of firms S number of employees participating Compare utilization rates for target periods or activi- ties, e.g. , motel occupancy rates, attendance at events, before and after travel development efforts (l)Keep a record of requests for information generated by each promotional effort (2)Provide coupons or similar sales promotion devices that can be counted/mon i tored for actual visits resulting from promotion 210 Phase of Development Plan Figure 12 EVALUATION MEASURES (contd. ) Program Element Pr icing Acceptance by travelers Profit to businesses Di str ibution Implementation of the Plan Subjective evaluation of: (1) timel ines (2) follow through on responsibi 1 i ties (3)adequacy of interface plans (k) success in identify- ing sources and securing capital and/or funding Evaluation Measures (3) Conduct a sep- arate study, or add questions to traveler sur- veys to deter- mine recall of adverti sing (1) Economic Impact Measure (2)Traveler surveys Cost/profit analysis by participating businesses (1) Increases in number of tour operators, travel agents sel 1 ing packages/doing business with commun i ty businesses (2) Volume of busi- ness generated by travel agents, group tours, etc. as a supplementary area of question- ing on economic impact measure 211 grant/loan requests when the federal share of an overall project is no more than 10 to 20 percent of the total cost. The total can include "in-kind" contributions such as the value of volunteer support, donations of services, free office space, and the like. The proposal for the civic center/hotel complex provided for approximately five-to-one non-federal funds. Travel and tourism expenditures in the U.S. are nearly all made in the private sector. Therefore, it is appropriate that funds come mainly from private sector investors. Planners should be aware, however, that debt capital may be somewhat less available for new travel related businesses than for some other businesses, as was noted in Chapter VIM. This suggests that well defined and evaluated plans are especially important in obtaining financing for tourism development. Some general statements can be made regarding the appropriateness of funds for specific purposes. Probably they are obvious, but there are some subtle variations. Government—federal , state or local — is most prone to fund infrastructure and publicly owned faci 1 i ties—parks, roads, utilities, waterfront facilities, and to a lesser extent non-profit organizations such as museums and culture related facilities. Private sector funds generally will be more appropriate for facilities selling services or goods directly to travelers. There are, of course, significant exceptions. For example, in many states there are state built and owned parks and forests that provide hotels, rental cottages, restaurants, camping and other services. There are also specially designated federal funds for small business grants and loans, and for minority owned businesses. It will be important for each community to examine its own special circumstances in the light of local, state and federal programs to determine which may be available and suitable. Private Sector . Entrepreneurial efforts and investment from the private sector ultimately will be the most important and largest part of a tourism development strategy. The sources of these may be viewed in terms of the role(s) each plays in financing the development process. Private sector sources of funds for travel industry investment may be classified in one of two categor ies. .. those who supply equity capital in order to receive an ownership share or profits from the investment, and those who supply debt capital in order to earn a guaranteed rate of interest on the invest- ment. Of course equity investors often borrow capital in order to buy, expand or develop a new business. In fact suppliers of debt capital only provide investment in response to a specific application by a qual if ied present or potential equity investor. The preceding point may seem too obvious to need to be made, but its implications are to the heart of the process of the successful development plan. In the process of designing the development strategy, planners will have to identify the most probable equity investors, and then define the incentives that will motivate them to want to invest. Secondarily, the strategy will have to include the criteria for business investors with the optimum probability for success and, therefore, the strongest credentials to qualify them for loans of debt capital. 212 For most communities, the more likely investors will be individuals or businesses already involved in the local travel industry .. .e.g. , hotels/ motels, retail stores, restaurants and campgrounds. The owners of such businesses already have a vested interest in travel, and can be motivated by information showing that they can increase their profits, business stability and/or community status. They will be known quantities to potential lending institutions if debt capital is needed. Other potential equity investors, or entrepreneurs, will include local businesses or individuals who can be motivated to or already perceive tour- ism enterprises as having favorable income potential. Such persons or busi- nesses will be more likely to be interested if they already have idle funds than if they would have to acquire debt capital. Development plan implementers may find that this group is composed of two sub groups. ..one which primarily is influenced by earnings potential, and the other which is made up of in- dividuals who have a psychological or emotional interest in the travel indus- try. Those with financial motivation are good prospects, but will require objective evidence of the potential, i.e., the results of most of the analysis and planning described and recommended in this manual. Psychologi- cally involved prospects may or may not be attractive as participants in the plan. Experience indicates that although these persons often have re- sources to invest, many lack the knowledge needed to create and operate a successful business. For example, they may be former school teachers who have always loved the outdoors and conceive of running a campground as a chance to have a vacation and earn a living at the same time. The failure rate for such entrepreneurs is high. Those managing the implementation of a tourism development plan will want to find some means to evaluate prospective investors before encouraging their participation. In addition it may be desirable to include some sort of management/small business training opportunities as part of the program. Such programs are available in many areas through the U.S. Small Business Administration (SBA) , local vocat ional -techn ical programs, the State Department of Education, or in local colleges as credit or non-credit courses. Attracting investors from outside the community can be a most important part of the development strategy, especially if the size and number of exist- ing travel businesses is small. These will include some organ izat ions di rectly in the business of finding and developing new sites, e.g., the major hotel/ motel chains. But these investors, even more than local or regional in- vestors, will be motivated by sound, comprehensive analyses demonstrating the profit potential available. In investigating such potential sources, it must be noted that most of them actually are franchising companies, and that ownership of a new facility will rest with another individual or company. Nevertheless, interesting the franchising company can be an important first step. Financial institutions as the principal sources of debt capital are the second tier resource. That is, they respond to local applications from other businesses. These loans may be considered in two categories. The most common is the loan provided to a business on the strength of that 213 business' reputation and the objective measures of profitability of successful repayment which derive from the planning process. In most instances there is also an obligation against the property for which the loan is issued, e.g., as in a mortgage. The other type of loan is that involving some sort of guarantee by another organization, usually government. Here the financial institution is partially or fully secured against loss. A typical example relevant to tourism would be loan guarantees by the Small Business Administration. Banks will accept riskier borrowers in such cases, but the government agency guaranteeing the loan may want even more detailed projections and measure- ments than the banks. One of the most significant findings in the demonstration project was that local bankers have a relatively negative perception of loans for some types of travel businesses (Chapter VIM). This is likely to be the case in many communities, especially those where tourism and travel have not been seen as major elements of the local economy. Such attitudes will bear particularly heavily on persons or businesses attempting to secure loans for new small travel businesses, such as a campground. A sound market analysis showing good prospects for success and pre-screen ing of potential investors will help to alleviate this problem. But it also will be important that general information about the size, potential, and value of a travel industry in the community be developed and provided to local banks and other lenders — i.e., a public relations program for the banks. Pub! ic Sector . A comprehensive listing of federal agencies and programs that provide grants, loans and technical assistance for tourism related projects can be found in Tourism USA, Volume IV: Sources of Assistance , published by the U.S. Department of Commerce, U.S. Travel Service (1979) • This publication also identifies some of the states' agencies and programs for tourism development assistance. Repetition of this material will not be undertaken here. Instead, this concluding section focuses on some of the approaches to consider in obtaining such assistance and/or funding. Technical assistance, which has direct and/or indirect financial impact on development was discussed in earlier chapters. Direct public funds also are available for planning, operations and capital investment or improvements. While there are exceptions, the following general guidelines may be helpful in identifying and seeking public funds for travel industry development: (1) Federal funds are more likely to be granted or loaned to or through state or local governments, rather than to private businesses, and for research, planning, or long term investment purposes, rather than operations. (The Small Business Administration and Farmers Home Administration are important exceptions whose funds are provided directly to businesses) . (2) State and local government agencies are more likely to provide funds for operations, especially for promotion and advertising. 214 (3) State and local government agencies also provide grants and loans for capital investment and improvements, but are less likely to fund research and plann ing--except where this is actually carried out by these agencies or under their direct supervision, e.g., a state-wide economic impact measurement or a resource inventory. (4) Each agency, especially at the federal and state levels, has its own special missions and objectives. Therefore, it is likely that the development organization will have to apply to several different agencies to acquire the full range of support potentially available for a comprehensive tourism development project. (5) Timing of applications is very important. Generally, o months to a year, or longer, will be needed from the time the application is first submitted. Additionally, the time of the fiscal year can have a significant effect on whether or not funds will be granted and on the length of time the process will take. (6) It is usually not possible to find out directly before a final decision is made on an application what the probability is that the grant or loan will be approved. (7) Many federal programs channel their funds through state agencies, which have partial or total authority over the application approval process. In addition to the above guidelines, those seeking federal support should become aware of the special channels used by the various agencies for receiving applications and distributing awards. Many have regional offices, e.g., the EDA, Corps of Engineers, HCRS, and SBA. Many also have subregional offices that service parts of a state. Although most of these agencies have some funds administered directly by Washington, these tend to be for research or demonstration projects, or for special types of programs that have broad national significance. Users of this manual probably will find that federal funds from regional and state allocations are the most accessible. These frequently can be com- bined with state appropriated industrial and/or travel development funds to provide a greater overall amount of support for the development project. For example, West Virginia's GOECD has a pool of industrial development money that can be loaned at low interest rates, and frequently is used in combination with federal and/or commercial bank sources. One of the ^receding guidelines noted the significance of the particular missions and objectives of each agency. Agencies may also require that a community's proposed project be included and prioritized within some type of master plan before it is eligible for funding. Tourism planners will want to coordinate their efforts with the agencies or organizations responsible for these master plans. 215 A good example is the EDA. The general policy is that projects must be specifically included in the regional and state Overall Economic Development Program (OEDP) to be eligible to receive EDA funds. WVU staff and TDC representatives worked closely with the Region VI Economic Development Council to prepare and incorporate the major elements of the long range tourism development plan for Harrison County into the Region VI OEDP (See Appendix IV). If the preceding discussion leaves the impression that acquiring public funds is a complex and confusing process, it was intentional. But, because the potential amounts of funds available are so large, accessing them successfully may be the difference between success and failure for a community tourism development project. Planners would be well advised to obtain the services of an experienced "grantsman"--a person who is familiar with the processes, procedures, agencies, programs, and people who manage federal programs. Conclusions Emphasis in this chapter has been on the management, scheduling, control, and financing of a community tourism development program. Throughout this manual great importance has been placed on an orderly step by step approach. No claim is made that the methods described in this manual are the only, or even optimum, ones for a specific community. The primary intended users, as stated at the beginning, are those in rural or smaller city settings, although much of the material, with few modifications, would be applicable to more urban areas. It can be said, however, that these guide- lines have either survived the test of the demonstration project, or have been modified as a result of it. The actual period of implementation of the demonstration project test was 1979. For most areas of the U.S., especially the more rural ones, 1979 was not a particularly good year for tourism. It was a summer of long gaso- line lines, a year of confusion over airline deregulation and DC-10 groundings, and other substantial travel industry impacting events. Preliminary economic impact assessments indicate that West Virginia as a whole showed no real growth in tourism sales during 1979, presumably because of these factors. Tourism in the demonstration region, increased by almost two percent during this time. While it is possible that several variables had an in- fluence on the results, it is reasonable to presume that one of the significant ones was the short run marketing strategy implemented in the demonstration project during this time. It was known at the beginning of the West Virginia project that at best only limited results could be obtained on the test of the long run elements of the plan. In general, those measures that might be possible would relate to progress on facilities development. Of the four items in this category two are moving ahead. The other two involve obtaining federal funds, and one required a local bond referendum which failed on the first attempt. So, measured against actual progress on specific projects, the long term strategy is at least a partial success. 216 A better measure might be the success of the development planning process in initiating tourism development activities from the community which had not existed before. On this measure, the demonstration project can be counted a great success. A major festival was initiated and is planned again for 1980. The regional travel council's slide presentation is in- creasingly in demand by community groups. Several local businesses and attractions are exploring new packaging and tour group opportunities. And these developments are occurring through local citizen/business initiative without further stimulus from the research project. In conclusion, it is hoped that tourism planners and developers will find some of the material provided here of direct use and benefit. At the very least it should help them to avoid some actions that would be contra- productive to their plans and community. And, it should also help to stimu- late interest in, and foster acceptance of, travel and tourism as one of the significant ways a community can create new jobs and economic growth. 217 APPENDICES Appendix I— Survey Instruments A. TRAVELER SURVEYS Survey of Households WEST VIRGINIA TOURISM SURVEY INSTRUCTIONS: Most of the questions can be answered with a simple check (v) or a short answer. Please try to answer all of the questions as accurately as possible. Try not to leave any blanks even if you must estimate. Your an- swers will be strictly confidential. Please do not sign your name. no 1 . Did you receive the literature you requested? yes . 2. Did you visit West Virginia after requesting the literature? yes. If yes, please state month and year visited (during longest stay) and continue with question 3. month year no. If no, please skip to question 6. If you did visit West Virginia since requesting the literature, what was the primary reason for your visit? (Please check only one answer, the one which applies to your longest stay.) Business trip Sightseeing, entertainment Visit friends or relatives Enroute to another state Outdoor recreation (camping, etc.) Other (please specify below) During your longest stay what type of lodging did you use? (please indicate number of nights in each category? Number of nights Number of nights Motel Friends or relatives homes Hotel Did not stay overnight in W. Va. State park lodge or cabin* Other (please specify below) Campground Please answer the following with regard to your longest stay in W Va. Number of nights spent in West Virginia Number of people in your party Miles traveled in West Virginia (approx.) j Amount your party spent in W. Va. during entire visit $ On a typical day please estimate how much your entire party spent in each of the following categories: (a) While staying in (b) While Hotel /Motel camping Lodging $ per day $ per day $. Food $ per day $ per day $. Recreation $ per day $ per day $. Auto Transportation $ per day $ per day $. Other (gifts, etc.) $ per day $ per day $. Additional expenditures for bus or airline tickets for entire trip $ (c) While staying with Friends or other .per day .per day .per day .per day .per day 218 Do not write in this column. 1. (D_ 2. (2)_ (3-5) 3. (6) 4. (7-20) 5. (21-80) :a> Ib)_ (c) 6. Had you visited West Virginia before requesting the travel literature? yes. Approximately how many times? Please continue with question 7. no, have never visited W. Va. Please continue with question 10. .no, only visited W. Va. after receiving the travel literature. Please continue with question 7. 7. During your trip(s) to West Virginia, what were the major towns or attractions visited? (Please give specific names, e.g., Charles Town) 1 2 3 8. What was the one aspect you liked most about traveling in West Virginia? 9. What was the one aspect you liked least about traveling in West Virginia? 10. Please indicate your home city and state at time of last visit to West Virginia. City State Zip. 6. (1-7) 7. (8-10) 8. (1 1-12) 9. (13-14) 10. (15-21) Thank you for your help. Simply place this form in the return envelope provided — no stamp is required. 219 Survey of Out-of-state Visitors SURVEY OF OPINION ABOUT TRAVEL IN WEST VIRGINIA INSTRUCTIONS: This questionnaire was designed to make the time needed to complete it as short as possible. Most of the questions can be answered just by marking the most appropriate of the answers given. A few require writing a short answer such as "the number of nights spent," or a short statement of your opinion. However, we hope that if you have any comments or ideas that would be helpful in making West Virginia a better place to visit you'll let us know about them, too. A. General Information 1 . Have you visited West Virginia since you wrote to the Dept. of Commerce for travel literature (check one) yes no 2. How would you rate each of the following in their helpfulness to you in planning, or during, your trip to West Virginia? DID NOT USE a. Materials sent by West Virginia Dept. of Commerce b. Materials from AAA, other motor clubs, etc. c. Materials from travel agent d. Maps, etc., from service stations e. Information from friends, relatives f. Information obtained from motel desk or similar sources while traveling in West Virginia g. Other (specify) h. Experience from past visits DID USE & FOUND: Not Not at all very fairly helpful helpful helpful quite helpful 3. Did you ever live in West Virginia? yes no B. Trip Information 4. How many times have you visited West Virginia since you wrote for information? (check one) None One time Two times Three or more 220 Please do not write in this space (1-4) (6)_ (7)_ (8)_ (9)_ (10)_ (1D_ (12)_ (13)_ (14)_ (15)_ IN ANSWERING THE FOLLOWING QUESTIONS IT IS IMPORTANT THAT YOU HAVE ONE PARTICULAR TRIP IN MIND. IF YOU HAVE ONLY VISITED WEST VIRGINIA ONCE SINCE WRITING FOR LITERATURE, PLEASE USE THAT TRIP. IF YOU HAVE VISITED WEST VIRGINIA MORE THAN ONCE, PLEASE USE THE TRIP ON WHICH YOU SPENT THE LONG- EST TIME IN WEST VIRGINIA. For this trip, please indicate which area of the country you started from (your home residence) and which was the farthest point in the U. S. you reached on this trip? (please check only one in each column) Starting point was located in U. S. region Farthest point reached was in Far West (Cal., Alaska, Idaho, Ore., Wash., Hawaii) Northwest (Colo., Mont., Neb., N.D., S.D., Utah, Wyoming) Southwest (Ariz., Kan., Mo., N.M., Okla., Texas) North Central (III., Ind., Iowa, Minn., Ohio, Wis., Mich.) South (Ala., Ark., Fla., Ga., Ky., La., Miss., N.C., S.C., Tenn., P.R.) Mid Atlantic (Del., Md., Pa., Va., W. Va., Wash., D.C. New England (Conn., Maine, Mass., N.H. R.I., Vermont) New York or New Jersey 6. How many nights did you spend away from home on this trip? Please state total number of nights away from home 7. How many nights did you spend in West Virginia on this trip? Please state total number of nights in West Virginia 8. Did you spend more than, exactly, or fewer than the planned number of nights in West Virginia. (Please check one.) more than the planned number of nights exactly the planned number of nights less than the planned number of nights 9. For this trip, was the time you spent in West Virginia on a weekend, weekday or both? (Please check) weekend (Fri. noon through Sun. night) weekday (Mon. through Fri. noon) covered parts or all of both 10. For this trip please indicate by an "X" in the appropriate box(es) on the next page which of the areas of West Virginia you visited. (The state is divided by lines into 8 areas. Mark as many areas as apply.) 22 Please do not write in this space (16) (17) (18-20) (21-23) (24) (2 5)_ AREA 8 □ AREA l l I £f1art ins burg • Harper's Ferry •Cnarl arles Town AREA 7 1 I AREA 2 □ (26). (27). (28). (29). (30) (31) (32) (33) AREA 3 [ I 1 1 . For your trip, please check the category which best describes the make-up of your travel party: (Check one) traveled alone with business contacts with immediate family with friends with relatives outside with other (specify) immediate family 12. If there were children in your travel party, please indicate their age range(s) below: (Check as many as apply) under 5 yrs. old 5 to 1 3 yrs. 1 4 to 17 yrs. 13. What was the main reason for your trip to West Virginia. (Please check only one.) business trip sightseeing or recreation visit friends & relatives visit historical or educational sites other (specify) outdoor recreation 14. If there were additional reasons for your trip to West Virginia, other than the one checked in question 13 above, please indicate below. (Check as many additional reasons as apply.) business trip sightseeing or recreation visit friends & relatives visit historical or outdoor recreation educational sites other (specify) Please do no\ write in this space (34) _ (35-37) (38) (39-44) 222 e. 15. If your trip was primarily a pleasure trip, not for business or family reasons, what were the main reasons you decided to visit West Virginia rather than some other place? (Check as many as apply. If this was mainly a business or family visit, please skip to Question 1 6) West Virginia was on the way to main destination Was closer to home, shorter distance to travel Had visited West Virginia before and wanted to come back Attracted by publicity or advertising Attracted by West Virginia's climate Was interested in shopping in West Virginia (crafts, glass) Wanted to rest and relax— get away from it all in an unhurried, friendly atmosphere Was attracted by West Virginia's scenery Was attracted by recreational areas Other (Please specify) C. Opinions About West Virginia We'd like to know your opinions about West Virginia as a place to visit so that we can continue to make our state a more enjoyable place to come to. 16. For each of the following categories, please check a space under the heading that best expresses your opinion of West Virginia in comparison with other parts of the U. S. that you've visited or heard about. Category a. Activities: Things to Do (amusements & attractions, swimming pools, skiing, golf, movies) b. Scenery & sightseeing attractions c. Pleasantness of weather d. Ease of traveling How West Virginia Compares: Far below average below average average above average Far above average Please do not write in this space (45-46) (47-48) 149-50) (51-52) (53-54) Service you received in motels, restau- rants, gas stations, etc. Cost of things you buy or do while traveling 223 (55) _ (56) _ (57)_ (58) _ (59) _ (60) _ 1 7. The following is a list of some of the little things that may make the difference between a pleasant or an unpleasant trip. Please check the space next to each of these items that best describes your experience while in West Virginia. Item a. Availability of motels, hotels b. Facilities offered at motels, hotels (pool, lounge, restaurant, etc. Availability of campgrounds Facilities offered as campgrounds Quality of eating facilities Highway directional signs Availability of restroom facilities Cleanliness of restroom facilities Ease of shopping Quality of W. Va. state parks Adequacy of roadside rest areas Helpfulness of people No Opinion Very Poor Poor Fair Good Excellent yes yes .yes .yes no no no no 1 8. Would you consider visiting West Virginia again? Would you recommend that friends visit West Virginia? Do you plan to visit West Virginia again? Do you know friends who are planning to visit West Virginia? D. Traveler Information: In order to better evaluate the information provided above, it would be helpful to know more about you, the traveler. 19- Are you (or the head of your household) married single spouse deceased 20. Age of head of your household under 18 25-34 18-19 35-44 20-21 45-64 22-24 64 & over 2 1 . Occupation of the head of the household Is he/she retired? yes no 22. Highest grade in school completed by head of household elementary post high school some college some high school vocational training college high school graduate work 224 Please do not write in this space (61)_ (62) _ (63) _ (64) _ (65) _ (66) _ (67)_ (68) _ (69)_ (70) _ (71)_ (72) _ (73)_ (74)_ (75)_ (76)_ (77) (78) _ (79-80) 1-4) 23. Total annual household income $ 5,000 or less $ 5,001- 7,499 $ 7,500- 9,999 $10,000-14,999 $15,000-19,999 $20,000-24,999 $25,000-29,999 $30,000 or over 24. Age of youngest child in your family no children 6-1 8, not at home children under 6 1 8 and over, at home 6-18, at home 18 and over, not at home 2 5. Magazines/ newspapers regularly read by you (and your family) 26. What three factors do you consider most important in choosing a vacation spot? 27. If you have any additional comments you'd like to make, please use the space below. Please do not write in this space (7)_ (8-10) 11-13) 114-16) (17-18) (19-20) (21-22) Thank you for your time. Come visit us again real soon. 225 TRAVELER FIELD SURVEY INTERVIEW QUESTIONNAIRE I. Interviewer (name) A. Location 1 . County 2. Travel Council 3. Type place: (1) hotel/motel (4) attraction (2) campground (5) other (3) state park B. Time, date: 1. Bate: Month day year 2. Time: 7 to 10 A.M. (1), 10 A.M. to 4 P.M. (2) 4 to 8 P.M. (3), 6 P.M. to 10 P.M. (4) C. Situation: 1. Setting for interview: (1) indoor-lobby, etc. (2) restaurant (3) outdoors 2 . Weather (1) sunny/ clear (2) cloudy/dry (3) rain (4) snow 3. Temperature (1) normal for season (2) unseasonably warm (3) unseasonably cool D. Respondent: 1. Sex: (1) male 2 . Race : (1) Oriental (1) alone (2) female (2) Caucasian other, A 4 J can't 3. Party: (1) alone (2) with family (OBTAIN INFORMATION FOR PART II FROM INTERVIEWEE) (3) Black with peer tell (3) associates (4) can't tell II. Trip Information: "First, I'd like 1. Are you a visitor here in (name location) or do you live in the area? (2) non-local to ask you a few questions about your present trip" A. Origin/Destination visi _J1) local a. Where is your home? town state zip b. How many are in your party? if tour group write "tour" after no. (IF RESPONDENT IS NOT STAYING AWAY FROM HOME OVERNIGHT, SKIP TO QUESTION 1 1. A. 2) c. How long have you been away from home? 226 Days (2-3)_ ( 4 ) (6-10) cn)"i (12) (13) (14) (15) (16) (17) (18-9) (20-21) (22-26) (27-28) (29-30) d. e. f. How much longer do you expect to be on this trip?_ (total days out ) How many days will you have spent in W. Va.? days days Where are you staying now? (or last night) (1) hotel (6) State park/forest lodge (2) motel (7) non-organized camping (3) private campground (8) friends or relatives (4) State park/forest campground (9) other (own cabin, train, bus) (5) State park/forest cabin (IF (8) OR (9) ABOVE, GO TO QUESTION II.A.H.) (IF W. VA. RESIDENT, SKIP TO QUESTION II. A. 2) g. How did you happen to choose this (that) place to stay? (1) friends, at home (2) travel guides (AAA, etc.) (3) advertising (other than roadside) (4) roadside signs or advertising (5) local recommendations (6) just saw while traveling along (7) other h. l. Have you ever visited (stopped or stayed) in W. Va. before? _yes (1) __no (2) Was W. Va. one of your main destinations, or are you stopping enroute to another state? (1) W. Va. (2) enroute j. If enroute, what is your next major destination? From To city/place city/place state state (31-32) (33-34) (35) _ (36) (37) __ (38) __ (39-40) You may be doing a variety of things, but what would you say was the main reason for your present trip? (1) business trip (2) visit friends or relatives _(3) outdoor recreation (include hiking, relaxation, camping, fishing, etc) (4) sightseeing or entertainment (5) Other (specify) : Are you traveling by automobile, air, bus, or some other means? (1) auto/ truck without camping equipment auto/ truck with camping equipment bus (2) "(3) '(4) "(5) (41) (42) air other (bicycle, motorcycle, etc.) III. Attitudes and Behavior ; (GIVE INTRODUCTION BELOW) "We'd like to get your opinion about W. VA. , and how it compares to some of the other areas of the U. S. you know about or have visited." From your point of view, how would you rate W. VA. on each of the following compared to other places? 227 1. Things to do NOT ENOUGH ABOUT AVERAGE HI VT TV W 2. Amount of interesting scenery and sightseeing attractions NOT ENOUGH ABOUT AVERAGE (1) 3. Weather MUCH WORSE THAN OTHER PLACES W m ABOUT AVERAGE w (1) (2) 4. Ease of traveling around MUCH MORE DIFFICULT (3) ABOUT AVERAGE (4) TU m T3T W 5. Service in restaurants, motels, service stations, etc. MUCH WORSE TU ABOUT AVERAGE (2) [33 " 6. Cost of the things you buy or do while traveling (4) MUCH LOWER TU ABOUT AVERAGE TU TU T4T 228 VERY DEVELOPED AND COMMERCIALIZED T5J CONSIDERABLY MORE THAN AVERAGE 1TJ MUCH BETTER THAN OTHER PLACES (5) MUCH EASIER T5T MUCH BETTER W MUCH HIGHER T5T (43) (44) (45) (46) (47) (48) 7. About how much would you estimate that you (and your party) have spent in W. Va. in the past 24 hours in each of the following categories? (IF RESPONDENT HAS NOT BEEN IN W.VA. FOR 24 HRS. HAVE HIM ESTIMATE FOR PRESENT DAY) Lodgings (hotel, motel, campground fees, etc) $ (49-51) Meals: Breakfast $ Lunch $ Dinner $ Total Snacks, etc. $ $ Auto § other transportation (gasoline, oil, tires, taxes, etc.) $ (52-54) Recreation § entertainment (include local tours , trips , etc. ) $ (55-57) Other (including gifts § souvenirs) $ (58-60) Additional total cost of airline, bus or other long distance carrier fares $ (61-64) Organized travel tour costs $ (65-68) 8.. Did the possible shortages and/or the higher prices for fuel have any effect on your deciding to travel to (or in) W. Va.? (1) yes (2) no (69) 9. Have you ever seen W. Va. 's travel and tourism brochures and literature (before)? (1) yes (2) no (70) IV. Personal Information "We'd like to have a few facts about you that will help us to understand your information a little better. A. Family 1. Are you (or the head or your household) married or unmarried? (1) married, (2) single, (3) spouse deceased (71) 2. Please look at this card and tell me the letter next to the range that includes the age of the head of your household. (0) e. (5) a. (1) f. (6) b. (2) g. (7) c. (3) h. (8) (72) d. (4) B. Vocational 1. What is the occupation of the head of your household? If they are retired, what was their occupation before retirement? Retired: (1) yes, (2) no (73) Occupation? 229 1. continued (0) don't know "(1) professional, technical, manager "(2) farm -owner, manager, laborer (3) clerical, sales (4) craftsman, operative, laborer (5) household or service employee (6) other (74) 2. What was the highest grade in school that the head of your household completed? Grade : (75) (0) a. CD d. (4) b. (2) e. (5) c. (3) f. (6) (0) e. a. (1) f. b. (2) g. c. (3) h. d. (4) 3. Please look at this card and tell me the letter next to the range that includes your total annual household income. (5) (6) (7) (8) (If unmarried skip) 4. What is the age of the youngest child in your family? (If older children, ask if still living at home.) (1) no children (2) under 6 years (3) 6-18 years, at home (4) 6-18 years, not at home (5) 18 and over, at home (6) 18 and over, not at home (76) (77) (78-80) THANK YOU FOR HELPING US OUT. HAVE A PLEASANT TRIP (vacation, day, etc.) 230 Appendix I-B HOUSEHOLD SURVEY TOURISM AND TRAVEL ATTITUDE SURVEY INSTRUCTIONS FOR INTERVIEWERS The Tourism and Travel Attitude Survey Questionnaire was designed by the West Virginia University Travel and Tourism Research group to be used in an assessment of the attitudes of Harrison County residents regarding various aspects of the impact of travel and tourism. This instruction sheet is intended as a supplemental guide to trained interviewers who will use the questionnaire in conducting a telephone survey. The Recording of Information Each interviewer will be given a calling list which includes the names, addresses, phone numbers, and special "household numbers" (used in computer coding) for all of the residences to be contacted. Before initiating each call, the interviewer will fill in the appropriate areas on the first page of the questionnaire with the information pertaining to the residence and its occupants, as well as the time and date of the call There is also a space provided in which the interviewer should sign his or her name before dialing. After recording this information and calling the number, the interviewer should indicate the type of response received by answering Item E: A successful response will be indicated with the number 1^ if the call was answered and the interviewer was able to speak with a resident who was 16 years of age or older. No response will be indicated with the number 2 if a. There was no answer after two call attempts, or b. The call was answered but the interviewer was unable to speak with an individual 16 years of age or older. When an appropriate interviewee is reached the caller should begin to read the questionnaire. It starts with a brief introduction and is followed by the questions. Everything is to be read to the interviewee except that which is enclosed by parentheses or marked otherwise. Several groups of answers are marked: "Do not read answers." In these questions the interviewee's response should be categorized into one of the answers listed. 231 INSTRUCTIONS Page 2 Statement H on the information section should be answered by the interviewer after the questioning is finished. If "no response" was indicated for this call in Item E, it will not be necessary to answer Item H. This survey is to be conducted only with people 16 and older. If the interviewer doubts the age of the interviewee, he or she should ask question 23 concerning age. If the interviewee is under 16, the interviewer should terminate the questioning and ask to speak with "Mr. or Mrs. (resident) ." Coding Responses to the questions should be marked in the code boxes to the right of the questionnaire. The information section on page one should also be coded directly into the code boxes, except for Items B, C, and D, where the information required is written on the lines provided. For phone number, Item C, there will be a corresponding zone number which should be coded into the blocks next to the phone number. This zone number consists of the second and third digits of the local seven digit phone number. For example, phone number 239-1425 would be coded as zone 39. For time, Item F, there are 5 blocks, the first four are for the time of day, and the last block is to indicate AM or PM by writing in the number 1 for AM and 2 for PM. Note that the household number must be recorded twice, first on the information sheet, and again in the spaces provided on page 6.~ 232 1. TOURISM AND TRAVEL HUMAN RESOURCES AND ATTITUDE SURVEY Fill in Items A - H before calling, A. Household number: B. Name of Resident: C. Telephone Number: D. Address: E. Response (mark with 1 if appropriate) No response (mark with 2 if appropriate) F. Time interview 1s conducted: Indicate hour and minutes in blocks 9-12 and AM (mark 1) or PM (mark 2) in block 13 6. Date interview 1s conducted. Begin to read questionnaire, but return to this page when the interview is completed. H. Questionnaire completed - Record the number 1 if all questions were asked, whether or not all were answered, Questionnaire incomplete - Record the number 2 if interviewee refused to participate to completion. HOUSEHOLD NUMBER a Cim 1-4 CARD Q 5 cfTl 6-7 o 8 fCXETID Hr. M1n. 9-13 Mo. Da. 15-17 □ 18 Interviewer: Verified by: Hello, I work for the travel and tourism research group at West Virginia University and we are conducting a survey for the Governor's Office of Economic and Community Development. As part of the survey we would appreciate your answering a few questions for us concerning your views on the development of travel and tourism in Harrison County. Your participation in this project is completely voluntary and your answers will be very much appreciated. (If at any time you doubt the respondent is at least 16 years old, ask question 23 concerning age.) 233 2. 1. I'm going to read a series of 15 statements to you. After each statement please tell me the effect you think an increase in tourism would have. Would an increase in tourism have a (1) good effect, (2) no effect, or (3) bad effect on: (Read the first phrase. Repeat part of the sentence for the first two or three phrases. Mark the number corresponding to the item in the appropriate box. Record a four (4) for an answer of unknown.) a. b. c. d. e. f. h. i . J. k. 1. m. n. o. Traffic congestion and parking problems Overall crime rate in the county Quality of the public school education in your community The quality of local businesses The quality of the local mass media (local newspapers and radio) Your access to public sports and vacation facilities The amount of government tax support for the county Prices of things you buy Cultural development of the county (musical, theater events, etc.) Customer services at stores, restaurants and movie theaters The conditions of the roads in and through your county Development of your neighborhoods The availability of job opportunities The growth in community population The attitudes of non-West Virginians toward our state 23^ 1. a □ 19 b D 20 c D 21 d D 22 e □ 23 f □ 24 g D 25 h D 26 i □ 27 J □ 28 k □ 29 1 □ 30 m □ 31 n D 32 D 33 3. 2. Please name some specific tourist facilities, events or attractions which you think could draw more travelers to Harrison County. (Do not read answers, mark each item mentioned with a JL Leave blank all boxes corresponding to answers not mentioned.) a. b. c. d. e. f. g. h. i . J. k. 1. m. n. o. P- q. r. s. t. u. v. w. X. y. z. aa. bb. cc. dd. ee. ff. gg. hh. ii. jj. Antique Show Arts Center Art Show Bird Sanctuary Bridgeport Fi remans Fair Churches Community Parks Campground and Trailer Parks Convention Facilities Covered Bridges Cultural Facilities Fairmont State Flower Shows Fort New Salem Goff Armory Golf Courses Historical Attractions Hotels and Motels Industry and Business Jackson's Mill League of Service Spring Festival Library Motorcycle Racing Museum (Unique) Natural Attractions Recreational Facilities Restaurants Salem College Salem Heritage Arts Festival Shinnstons Frontier Days Swimming Pool Tennis Courts Theater Watters-Smith State Park West Virginia Birthday Celebration Other; Specify: 235 a 34 b 35 c 36 d 37 e 38 f 39 g 40 h 41 i 42 J 43 k 44 1 45 m 46 n 47 | 48 P 49 q 50 r 51 s 52 t 53 u 54 v 55 w 56 X 57 y 58 z 59 aa 60 bb 61 cc 62 dd □ 63 ee □ 64 « 1 a 65 gg 3 66 hh a 67 ii 1 □ 68 jj □ | 69 4. How do you think your community would react to tourists from foreign countries? (Read answers) 1. 2. 3. 4. 5. Very accepting Accepting Indifferent Unaccepting Very unaccepting Considering all possible factors, what affect would an increase in tourism have on your community? (Read answers) 1. ) \lery positive 2.) Positive 3.) No effect 4.) Negative 5. ) Very negative Suppose that for some strange reason all travelers and tourists stopped visiting Harrison County. If this happened the county would suffer economic losses: some local businesses would lose sales, the local communities would then lose tax dollars, some employees of the businesses might be laid off, and a few of the tourism and travel related businesses might even close down. However, the county would still have many other types of businesses which would be largely unaffected, in areas like mining, manufacturing and retailing. So, our question is as follows: How serious would the loss of all tourism and travel activity be to Harrison County? (Read answers) 1.) Extremely serious 2. ) Very serious 3.) Serious 4. ) Not very serious 5. ) Not at all serious 3. □ 70 4. □ " 5. 236 □ 72 5. What is your occupation? (Do not read answers; write the number of the most appropriate category in the boxes. ) 01.) Operatives (miners, bus and truck drivers, transportation equipment operators, precision machine operators, sewers and stichers) 02. 03. 04. 05. 06. 07. 08. 09. 10. 11. 12. 13. Craftsmen (machinists, carpenters, mechanics) Clerical (bookkeepers, secretaries, post office workers) Professional, technical (engineer, nurse, teacher) Service workers (waitress, maid, bartender) Managers and Administrators (bank officer, sales manager, proprietor) Laborer, except farm (construction worker, freight, stock, and material handler) Sales workers (real estate agents, sales clerks] Personal home care (housewife, etc.) Farmers and farm managers (includes farm laborers and farm supervisors Student Mo occupation Other; please specify: 7. If you were given the chance to be hired for any job, for which you are presently qualified or could qualify for after a short period of training , what job would you choose? (Do not read answers, write the most appropriate category in the boxes. Select the answer from alternatives 01-11 in question 6 above or from items 12-15 below.) 01. - 11.) see answers in question 6. 12.) No change possible 13.) No change desired 14.) Desires to remain retired 15.) Other; please specify: 1 1 1 73-74 237 □ 75-76 6. If you had an opportunity to change jobs, would you choose to work for a ? Please answer yes, uncertain, or no. (In the block next to the type of business, mark _1 for a yes response, 2 for an answer of uncertain , or 2 f° r a response of noj 01. 02. 03. 04. 05. 06. 07. 08. 09. 10. 11. 12. 13. 14. Hotel or motel Travel and tourism agency (tour guides, charter tours) Gasoline service station Restaurant or nightclub Bus company Camp or trailer park Car rental service Amusement park or concession operation Taxi cab company Department or general store Grocery or small food store Recreation or sports service (golf course, swimming pools, tennis courts) Police or fire department Land, wildlife, or forest administration agency Of the fourteen businesses which we just discussed, which one do you think would offer you the most desirable job opportunities if the business were located in Harrison County? (Refer to the businesses listed in question 8 for the necessary code number.) 238 HOUSEHOLD NUMBER CARD El 8. (01) □ 6 (02) D? (03) Ds (04) □ 9 (05) Dio (06) Dn (07) Diz (08) Dl3 (09) Dm (10) a i5 (11) Dl6 (12) D" (13) Dm (14) D» m 20-2 10. 11. Would you please tell me two reasons why that business would be most desirable for employment. (Do not read answers. ) 01. 02. 03. 04. 05. 06. 07. 08. 09. 10. 11. 12. 13. 14. Attractive salary or wages. Desirable physical work setting Desirable human work setting Favorable work schedule Stability of employment Compatibility with skills or education Chance to meet customers Union membership Opportunities for promotion or career growth Minimal job pressure Restricted customer contact Chance to improve the human condition Other #1 - please specify: Other #2 - please specify: 10. 22-23 CO 24-25 The businesses to which you said you would not choose to work for included ( list businesses which received a no (3) response ). Which one of these businesses do you think would offer you the least desirable job opportunities if the business were located in Harrison County? (Refer to the businesses listed in questions for the necessary code number.) 239 11. D26- 27 12. Would you please tell me two reasons why that business would be least desirable for employment. (Do not read answers ) 01. 02. 03. 04. 05. 06. 07. 08. 09. 10. 11. 12. 13. 14. Unattractive salary or wages Undesirable physical work-setting Undesirable human work-setting Unfavorable work schedule Instability of employment Incompatibility with skills or education Requirement to meet customers Union membership Few or no opportunities for promotion or career growth Excessive job pressure Requires customer contact Too little chance to improve the human condition Other #1 - please specify: Other #2 - please specify: 13. If you have ever worked for any of those fourteen types of businesses, would you please tell me which ones they are. (Refer to the businesses listed in question 8 for the necessary code number.) THE REMAINING FEW SHORT QUESTIONS ARE ABOUT YOUR PARTICULAR SITUATION. YOUR ANSWERS MAY HELP US TO BETTER UNDERSTAND YOUR VIEWS ON TOURISM. 14. How many total years have you lived in Harrison County as a permanent resident? (Do not read answers) i.; i Less than 1 year 2.: i 1-5 years 3.' i 6-10 years 4.; ) 11-15 years 5.' i 16-20 years 6.; i 21 or more years 7.: i not a permanent resident (e.g., 240 student) 9. 15. Would you say that the area in which you live is 1.) Urban 2.) On the outskirts of a city 3.) Rural 16. What is your current employment status? 1.) Full-time 2.) Part-time 3.) Retired 4.) Unemployed 5.) Student 6.) Full-time personal home care (If the response to question 16 was answer 4, "unemployed," ask question 17.) (17. ) For how long have you been actively seeking employment? 1. ) 0-3 months 2. ) 4-6 months 3. ) 7-9 months 4.) 10 - 12 months 5. ) 13-15 months 6. ) 16-18 months 7.) 19 - 21 months 8.) 22 - 24 months 9.) Other, please specify: 18. What is your marital status? 1.) Single 2.) Married 15. D 43 1 16. i 1 i ■ l i D44 ! ! 17. □ 45 18. □ 46 ! (19.) (If married) What is your husband's/wife's occupation? (Do not read answers; write the number of the most appropriate category in the boxes.) 01.) Operatives (miners, bus and truck drivers, transportation equipment operators, precision machine operators, sewers and stichers) 02.) Craftsmen (machinists, carpenters, mechanics) 03.) Clerical (bookkeepers, secretaries, post office workers) 04. 05. 06. 07. 08. 09. 10. 11. 12. 13. Professional, technical (engineer, nurse, teacher) Service workers (waitress, maid, bartender) Managers and Administrators (bank officer, sales manager, proprietor) Laborer, except farm (construction worker, freight, stock, and material handler) Sales workers (real estate agents, sales clerks) Personal home care (housewife, etc.) Farm and farm managers (includes farm laborers and farm supervisors) Student No occupation Other; please specify: (20.) (If married) What is the current employment status of your spouse? 1.) Full -time 2.) Part-time 3.) Retired 4.) Unemployed 5.) Student 6.) Full-time personal home care (If the response to question 20 was answer 4, "unemployed"; ask question 21.) 2A2 11. (21.) For how long has your husband/wife been actively seeking employment? 21 i.; i 0-3 months 2.: i 4-6 months 3.: i 7-9 months 4.; ) 10-12 months 5.: i 13-15 months 6.: i 16-18 months 7.: 1 19-21 months 8.; ) 22-24 months 9.; ) Other, please specify □ 50 22. The next question reads: Mould you please give me the ages of any of your children currently living with you. (Record the appropriate number of children in each box.) a.) 5 years or younger b.) 6-10 c.) 11 - 15 d.) 16 - 20 e. ) 21 or older 22, a Qsi b D52 c Q53 d Q54 e Q55 23. Would you please state your religious preference, if you have one? (Do not read answer. ) 23 1. 2. 3. 4. 5. Catholic Protestant (includes Methodist, Luthern, Baptist, etc.) Jewish Other None □ 56 243 12. 24. To which racial group do you belong answer. ) (Do not read 1. 2. 3. 4. 5. White (All persons having origins in any of the original Europe, North America, Middle East or the Indian Subcontinent) Black (All persons having origins in any of the black racial groups) Asian or Pacific Islander (All persons having origins in the Far East, SE Asia, or Pacific Islands) Hispanic (All persons of Mexican, Puerto Rican, Cuban, Central or South America or other Spanish culture, regardless of race) American Indian (All persons having origins in any of the original peoples of North America, or any Alaskan native) 25. Into which of the following age groups do you belong: 1.) 15 and under 2.) 16 - 20 3.) 21 - 30 4.) 31 - 40 5.) 41 - 50 6.) 51 - 60 7.) 61 - 65 8.) 66 and over 26. What was the last year of school which you completed? (Do not read answer) 1.) Elementary 2. ) Some high school 3.) High school graduate 4.) Vocational 5. ) Associate degree 6. ) Some college 7. ) College degree 8.) Some graduate school 9. ) Graduate degree 244 13. 27. 28. 29. 30. DO NOT ASK, SIMPLY INDICATE IN BLOCK. What is the respondent's sex? 1.) Female 2.) Male Do you rent or own your place of residence? 1 . ) Rent 2.) Own 3.) Neither (for example, a dependent child) How do you think your financial situation would change as a result of increasing tourism? (Read answers) 1.) Improve 2.) No change 3.) Decline What was your (and your spouse's) approximate total income for the last 12 months? 1.) Under $5,000 2.) $5,000 to $9,999 3.) $10,000 to $14,999 4.) $15,000 to $19,999 5.) $20,000 to $24,999 6.) $25,000 to $29,999 7.) $30,000 to $34,999 8.) $35,000 to $39,999 9.) $40,000 or over 27. Deo 28. Dei 28. Ck 30. That completes my list of questions. Thank you for your time (Please return to question H.) □ 63 Appendix I -C BUSINESS SURVEY TRAVEL AND TOURISM SURVEY: BUSINESS SECTOR The travel and tourism research group at West Virginia University, with the sponsorship of the Governor's Office of Economic and Community Development, is conducting a survey to assess attitudes of the business community regarding the future development of travel and tourism in Harrison County. The travel and tourism industry in West Virginia serves in-state and out-of-state travelers who visit friends and relatives, attend business conventions and meetings, go sightseeing, seek entertainment, or engage in outdoor recreation. These travelers spread their purchases throughout the business community, spending on transportation, recreation, food, lodging, gifts, and souvenirs. Almost every business is affected either directly or indirectly by the level of tourism in Harrison County. The attached survey questionnaire is part of a larger project designed to assess the economic impact of travelers in West Virginia. The results will be used to help develop marketing strategies designed to foster the growth of the travel and tourism industry in the state. Because we need to know your preferences regarding the development of Harrison County, we ask you to please complete this questionnaire. Your response will be an important input to the planning of the tourism policy affecting your business community. 2k6 Sequence # OOOOO1-5 One of the possible outcomes of this study is that state and local governments would be advised to join forces in an effort to increase the number of tourists and travelers who visit Harrison County. Before recommending this action, we would like to know what effect you think an increase in travel and tourist activity would have upon the following. Please mark your answers in the box to the right of each question. Mark "1" to answer "positive effect," "2" to answer "no effect," "3" to answer "negative effect." Ability of your business to obtain financing Amount of Government tax support for the county •■ Your operating costs ■ Your profit margin on the products or services you sell Your ability to prevent customer theft Your ability to offer new employment opportunities Your ability to retain your current pattern of pricing Public's image of your business community — ■ Availability of parking facilities for your customers Your ability to hire capable employees — -— Your sales volume Amount of customer traffic at your business location Your ability to provide customer services Your relationship with other business people in the community — Relationship of taxes and government services to your business -- Your ability to increase employee wages and benefits Your overall ability to compete effectively with local businesses offering similar products or services Attractiveness of your business location Your ability to obtain reasonably priced products and services from suppliers Possibility that your business would expand its operation 247 ANSWER 1 JOXES 6 b D 7 cD 8 d D 9 eD 10 f D 11 • D 12 h D 13 iD 14 jD 15 k D 16 iD 17 m D 18 nD 19 oD 20 pD 21 sD tD 22 23 24 25 -2- ANSWER BOXES 2. Which of the following most closely describes your business? 1) Retail Trade (general merchandise stores, food stores, eating and drinking places, automobile dealers) 2) Wholesale Trade (wholesale durable and non-durable) 3) Services (health services, hotels and other lodging, personal and business service, auto repair service, amusement and recreation) 4) Contract Construction (building construction, construction other than building, special trade) Transportation, Utilities (passenger transit trucking and warehousing; gas, sanitary services and electricity) 6) Financial Institutions, Insurance, Real Estate (banking, insurance carriers) 7) Mining (bituminous, oil and gas extraction) 8) Manufacturing (stone, clay and glass, machinery, food and kindred products, lumber and wood products) 3. The following are some things that any business might do in cooperation with other organizations to help increase travelers* interest in visiting Harrison County. Please indicate the extent to which your business has been involved in each of these cooperative undertakings during the past year: 1 = frequently 2 = occasionally 3 = never a) We participate in national promotions (advertising, special discounts, etc.) b) We hold membership in and promote through travel related organizations (AAA, etc.) c) We support local or regional groups, such as the Chamber of Commerce or the regional Planning and Development Council, in their efforts to develop tourism ■ d) We encourage employees to participate in volunteer organizations that support or promote tourism e) Other, please specify: 248 □ □ 26 aD 27 bD 28 C D 29 d D 30 31 -3- 4. The following business programs or activities are designed either to provide visitors with activities or to otherwise promote a pleasant stay while in Harrison County. Please indicate the extent to which your organization has been involved in each during the past year: 1 = frequently 2 = occasionally 3 = never a) We train employees in ways to aid travelers b) We provide traveler services (free coffee, travel, maps, etc.) c) We offer tours of the business to tourists d) We accept "travelers checks" ■ e) We accept out-of-town checks f ) We offer goods or services for sale which might be of special interest to travelers (e.g., shaving kits, maps, guided tours, etc.) ■ g) We provide services on evenings, weekends, or other special times when tourists are likely to want them h) Other, please specify 5. Which of the following promotional activities does your company undertake, at least in part, in order to attract travelers and tourists to Harrison County? Place the appropriate number in the boxes to indicate the extent of your activity: 1 = frequently 2 = occasionally 3 = never We advertise in out-of-town/area newspapers We advertise on regional radio We advertise on regional television We advertise in national magazines (regional edition) We advertise on highway billboards We make and send out our own brochures to attract travelers Other, please specify: 249 ANSWER BOXES aD 32 b D 33 cD 34 dD 35 eD 36 f D 37 .□ 38 □ □ 39 aD 40 b D 41 C D 42 dD 43 eD 44 f D 45 46 -4- 6. Mark a "1" in the appropriate boxes to indicate all of the following which could be used to describe your business or any part of your business. Gasoline service station Movie theater Other theater Entertainment or attraction — Campground (private enterprise operations) Motel - ■ Hotel ■ Restaurant Bar - - Club - Gift/souvenir shop Sporting goods store Department store ■ Drug store NONE of the above describe the business 7. How many people from Harrison County are employed full time in your local operations? 1) 1-25 2) 26 - 50 3) 51 - 75 4) 76 - 100 5) 101 - 200 6) 201 - 300 7) 301 - 400 8) 401 - 500 9) If more than 500, please specify: 250 ANSWER BOXES aD b D cD d D fD .□ ,□ ,□ m D n D „□ D 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 -5- 8. Please mark "1" in the corresponding box for each of the following statements that are true of the present company for which you work (mark both a, and b, if appropriate): a) The business is owned or controlled by a parent organization located outside of the county. b) The business is part of a franchizing operation 9. What is your approximate annual sales volume from Harrison County operations? 1) $100,000 or less 2) $100, QQ1 to $300,000 3) $300,001 to $500,000 4) $500,001 to $700,000 5) $700,001 to $900,000 6) $900,001 to $1,100,000 7) $1,100,001 to $1,300,000 8) $1,300,001 to $1,500,000 9) $1,500,001 or more 10. What is your business relationship to the Mountaineer Country Travel Council? 1) The business is a member. 2) The business is not a member but I am familiar with the Council and its objectives and operations. 3) I am not familiar with the Council. 11. Approximately what percentage of your business' total sales do you attribute directly to the impact of travel and tourism? 1) less than 10% 2) 10% to 19% 3) 20% to 29% 4) 30% to 39% 5) 40% to 49% 6) 50% to 59% 7) 60% to 69% 8) 70% to 79% 9) 80% to 100% 251 ANSWER BOXES aD 63 b D 64 □ □ □ 65 66 67 -6- 12. Total sales of retail and service businesses in Harrison County for 1976 was $200,012,000. How much of this total do you guess resulted from traveler and tourist expenditures? 1) $42.6 million (21% of the total) 2) $32.4 million (16% of the total) 3) $21.6 million (11% of the total) 4) $11.3 million (6% of the total) 5) $ 2.1 million (1% of the total) 13. Please guess at the rank of each of the following types of businesses in terms of their total number of employees in Harrison County. Mark 1, 2, 3, 4, or 5 in each box where "1" indicates the business which is the largest employer of the five types listed, and "5" indicates the smallest type of employer. (Use each number, "1" through "5", only once.) a) Utilities - — b) Finance, Insurance and Real Estate c) Health Services d) Travel and Tourism e) Construction c 14. Please guess at the rank of each of the following types of businesses in terms of their total wage and salary payroll in Harrison County. Mark 1, 2, 3, 4, or 5 in each box, where "1" indicates the business which has the largest total payroll of the five types listed, and "5" indicates the employer with the smallest total payroll. (Use each number, "1" through "5", only once.) a) Utilities b) Travel and Tourism c) Furniture and Home Furnishings d) Banking e) Construction 252 ANSWER BOXES □ 68 aD 69 „□ 70 cD 71 d n 72 eD 73 aD 74 b D 75 cD 76 d D 77 eD 78 -7- THE FOLLOWING INFORMATION WOULD BE APPRECIATED Your Name Your Position Company Name Mailing Address Telephone Number Please return the completed questionnaire in the attached self -addressed, postage-paid envelope. Thank you for taking your time to answer this survey. If you have any questions or would like to know about the survey results, please contact Dr. John A. Pearce, II, Bureau of Business Research, West Virginia University, Morgantown, West Virginia 26506. 253 Appendix I-D FINANCIAL INSTITUTIONS SURVEYS SURVEY OF HARRISON COUNTY BANKS Instructions: Please answer the questions in the attached questionnaire to the best of your ability. Where figures are requested, we ask only that estimates be made based on your best judgement, that is, we are not asking you to make a check of your files. Opinions or subjective judgements should be based on your own personal evaluation of the situation as described in a given question. We appreciate your participation in this study which we feel will benefit Harrison County and its banking community. 254 QUESTIONNAIRE 1. It is our understanding that bankers in different areas have different preferences regarding the types of businesses to which they lend money. Therefore, for this question, assume that loan applications were received from firms in each of the following businesses. The loans are all for one year, they are to be secured by either inventory or guarantor's signature, and all businesses are just being started. Formal credit analysis suggests that all are equal in terms of business risk. Please indicate to which you would most prefer to make a loan by placing a "1" in the box across from that business. Then place a "2" in the box across from the business that would be your second choice. Continue to assign numbers to the remaining businesses based on your relative order of preference. BUSINESS ANSWER BOXES a. Glass Manufacturer a. L — 1 b. Motel b. I — I c. Coal Company c. ' — ' d. Campground (private enterprise, non-government) — d. I — I e. Grocery Store — e. I — I f. Amusement Park f . I — I 2. Some factors are listed below which you may have considered in ranking the businesses in question 1. Please indicate the relative importance of these factors in your ranking process by placing a "1" in the answer box across from the factor that was most important, a "2" for the factor next in importance and so on. ANSWER BOXES a. Your familiarity with making loans to similar businesses a. b. Loan loss experience you have with similar i — i businesses b. | I c. The seasonal nature of the businesses c. I I d. The risk of loans to that type of business d. I I e. The perceived attitude of regulatory agencies i — i toward loans to the businesses e. I I f. The benefit of the businesses to the community f. I I g. The loan diversification which would result g. I | h. Other, please explain: h.D 255 3. Please indicate the significance of the following factors in assigning your ranking to "campground" as a potential borrower. Mark a "1" to indicate a "strongly favorable factor" "2" to indicate a "favorable factor" "3" to indicate a "factor neither favorable nor unfavorable" "4" to indicate an "unfavorable factor" "5" to indicate a "strongly unfavorable factor" "6" to indicate "no basis for judgement" ANSWER BOXES a. Your familiarity with making similar loans a. I I b. Loan loss experience you have with that type of business — b. | I c. The risk of loans to that type of business c. I I d. The seasonal nature of the business d. I I e. The perceived attitude of regulatory agencies toward loans to that type of business ■ -■ f. The benefit of the business to the community g. The loan diversification which would result ■ h. Other, please explain: e. l l f.D g. L_ h. 4. Please indicate the significance of each of the following factors in assigning your ranking to "motel" as a potential borrower. Mark a "1" to indicate a "strongly favorable factor" "2" to indicate a "favorable factor™ "3" to indicate a "factor neither favorable nor unfavorable "4" to indicate an "unfavorable factor" "5" to indicate a "strongly unfavorable factor" "6" to indicate "no basis for judgement" ANSWER BOXES a. Your familiarity with making similar loans --- a. I I b. Loan loss experience you have with that type of business — b. | | c. The risk of loans to that type of business c. | | d. The seasonal nature of the business d. I I e. The perceived attitude of regulatory agencies toward ■ — . loans to that type of business e. | | f. The benefit of the business to the community f. I | g. The loan diversification which would result g. I I h. Other, please explain: h. | | 256 5. In order for us to find out about the types of bank loans being made in Harrison County, please estimate the proportion of commercial and industrial loans (as opposed to consumer, residential, real estate, agricultural, etc.) classified as follows: A. Loans to: Corporations % Partnerships or proprietorships % Total 100% B. Secured loans % Unsecured loans % Total 100% C. Straight loans % Amortized loans % Total 100% D. Term loans % Short-term loans % Total 100% E. Loans associated with SBA % Loans not associated with SBA % '0 Total 100% F. Loans in which other banks participated % Loans in which your bank handled the entire loan % Total 100% G. Loans to small businesses (less than $8 million in sales) % Loans to larger businesses (more than $8 million in sales) % Total 100% H. Loans to new firms (less than 2 years old) % Loans to older firms (2 years old or older) % Total 100% 257 6. Please guess at the rank of each of the following types of businesses in terms of their total number of employees in Harrison County. Mark 1, 2, 3, 4, or 5 in each box where "1" indicates the business which is the largest employer of the five types listed, and "5" indicates the smallest type of employer. (Use each number, "1" through "5" only once.) ANSWER BOXES a. Utilities a. | I b. Finance, Insurance and Real Estate b. | | c. Health Services c. | I d. Travel and Tourism d. | | e. Construction e. | | 7. Please guess at the rank of each of the following types of businesses in terms of their total wage and salary payroll in Harrison County. Mark 1, 2, 3, 4, or 5 in each box, where "1" indicates the business which has the largest total payroll of the five types listed, and "5" indicates the employer with the smallest total payroll. (Use each number, "1" through "5" only once.) ANSWER BOXES a. Utilities a. | | b. Travel and Tourism b. | | c. Furniture andHome Furnishings c. | | d. Banking d. | | e. Construction e. | | Please insert the completed questionnaire into the enclosed envelope and send to Professor Theodore Veit College of Business & Economics West Virginia University Morgan town, West Virginia 26506 Thank you for your assistance in this study. 258 PART II SURVEY OF HARRISON COUNTY BANKS Instructions: Please answer the questions in the attached questionnaire to the best of your ability. Where figures are requested, we ask only that estimates be made based on your best judgement, that is, we are not asking you to make a check of your files. Opinions or subjective judgements should be based on your own personal evaluation of the situation as described in a given question. We appreciate your participation in this study which we feel will benefit Harrison County and its banking community. 259 QUESTIONNAIRE 1. Please indicate which services you currently provide to out-of-town visitors by placing an "x" in the appropriate boxes. ANSWER BOXES a. Cash advance on VISA cards a. | | b. Cash advance on Master Charge cards b. I I c. Cash traveler's checks c. | | d. Cash out-of-town personal checks d. | | e. Wire transfer service — e. | | f. Replacement of lost traveler's checks f. | | g. Immediate foreign currency exchange g. | | h. Other, please explain: h. |_ 2. We consider the tourist industry to include the following types of businesses although this list is not all-inclusive: a. Amusement Parks d. Hotels b. Campgrounds (private businesses) e. Restaurants c. Motels f. Gift/Souvenir Shops Please mark your response to the following statement regarding the tourist industry. Mark "1" to answer "strongly agree" "2" to answer "agree" "3" to answer "neither agree nor disagree" "4" to answer "disagree" "5" to answer "strongly disagree" ANSWER BOXES a. I feel that the growth of the tourist industry in i — i Harrison County would benefit the community a. I I b. I feel that loans to businesses in the tourist industry are, in general, more risky than loans i — i to businesses in other industries b. I I c. To encourage the growth of the tourist industry in Harrison County, my bank is willing to add additional bank services for tourists (e.g. currency exchange, < — i traveler's checks, out-of-town check cashing) c. | | d. To encourage the growth of the tourist industry in Harrison County, my bank is willing to give special i — i loan concessions to businesses in that industry d. | | 260 3. If you indicated above that your bank might be willing to give special loan concessions to firms in the tourist industry to encourage the growth of that industry in Harrison County (answered 1 or 2 to question 2d above), please specify the nature of those concessions. Mark an "x" in the appropriate boxes. ANSWER BOXES a. Lower than competitive interest rates a. I I b. More lenient approvals ■ b. | | c. Compensating balance concessions c. I I d. Longer than normal maturities d. | | e. More liberal arrangements on security e. I I f. More rapid processing of loan applications f. | | g. Other, please explain: g. I I 4. If you marked answer 1 or 2 in question 2c above, indicating that your bank might be willing to add additional bank services for tourists to encourage the growth of the tourist industry in Harrison County, please indicate what additional services you might add. Please mark an "x" in the appropriate boxes. ANSWER BOXES a. Cash advance on VISA cards a. | | b. Cash advance on Master Charge cards b. [_ | c. Cash traveler's checks c. | | d. Cash out-of-town personal checks d. j j e. Wire transfer service e. |__J f. Replacement of lost traveler's checks f. | | g. Foreign currency exchange g. [ | h. Other, please explain: h. j | 261 5. One of the possible outcomes of this study is that state and local governments would be advised to join forces in an effort to increase the number of tourists and travelers who visit Harrison County. Before recommending this action, we would like to know what effect you think an increase in travel and tourist activity would have upon the following . Please mark your answers in the box to the right of each question Mark "1" to answer "positive effect" "2" to answer "no effect" "3" to answer "negative effect" ANSWER BOXES a. Ability of your business to obtain capital financing a. I I b. Amount of Government tax support for the county b. I I c. Your operating costs ■ c. I I d. Your bank's profit margin — d. I I e. Your ability to prevent check cashing losses e. I I f. Your ability to offer new employment opportunities f. I I g. Your ability to retain your current loan interest rates - g. | | h. Public's image of your business community h. I I i. Availability of parking facilities for your customers — i. I I j. Your ability to hire capable employees j. | | k. Your bank's deposit growth k. | | 1. Amount of customer traffic at your business location 1. | | m. Your bank's loan demand •— m. | | n. Your ability to provide customer services n. | | o. Your relationship with other business people in i — i the community o. I I p. Your ability to increase employee wages and benefits p. I I q. Relationship of taxes and government services to i — i your business q. | | r. Your overall ability to compete effectively with i — i local banks r. [ I s. Attractiveness of your business location s. I I 262 6. Total sales of retail and service businesses in Harrison County for 1976 was $200,012,000. How much of this total do you guess resulted from traveler and tourist expenditures? ANSWER BOXES 1. $42.6 million (21% of the total) 2. $32.4 million (16% of the total) 3. $21.6 million (11% of the total) Q 4. $11.3 million (6% of the total) 5. $ 2.1 million (1% of the total) 7. What is your business' relationship to the Mountaineer Country Travel Council? 1. The business is a member 2. The business is not a member but I am familiar with j j the Council . 3. I am not familiar with the Council. Please insert the completed questionnaire into the enclosed envelope and send to: Professor Theodore Veit College of Business & Economics West Virginia University Morgan town, West Virginia 26506 Thank you for your assistance in this study. 263 Appendix II COMPUTER PROGRAM NOTES IATCHSTRENG PROGRAM DESCRIPTION The Latchstring program actually consists of three programs. The primary- program is written in SAS.76 and has been successfully run on both version 76.5 and 76.6 of SAS in the West Virginia Network (WVNET) computing environment. The function of this program is to take the Latchstring survey data after it has been checked and all errors removed, sort the data according to survey category, travel council, and county, respectively, and print the data out by category. Although no specific statistical analysis has been designated for the evaluation of the data, program modification to effect any type of analysis has been facilitated by setting the program up in this fashion. One of the two remaining programs is a program written to perform basic error checking of the data once it has been transferred from the survey forms to computer cards. Due to its function, this program is perhaps the most important of the three. This program is written in PL/I and has been success- fully run using the PL/I optimizing computer in the WVNET computing environment. The program itself is thoroughly documented and can be easily modified to perform additional error checking tests by any programmer having a working knowledge of the PL/I language. The third program is a program designed to print a concise summary of Latchstring survey results for the entire state by travel council within each of the survey categories. Input to the program must be manually taken from the results generated for each survey category for each travel council by the primary Latchstring program. This program is also written in PL/I, is also well documented for easy understanding and modification, if necessary, and has been successfully run under the same circumstances described for the former program. 264 "TRAITS" PROGRAM DESCRIPTION Two basic reasons justify processing travel industry survey data via computer programs. One is that this pre- cludes accidental modification to the procedures, or algorithms, used to compute the statistics and infor- mation for user reports, thus assuring the exact dupli- cation of format from one report to the next The second is to assure the survey data is quickly processed with a minimum of manual intervention. Travel survey input data is prepared in three main punch card formats: the hotel survey card, the camp- ground survey card, and a pair of cards containing state park survey information. This is referred to as the CARD file. Also associated with the package are two tape files. One is the FIRM tape file which contains information from the previous survey returns of the individual firms. The other is the HIST tape file which contains summary information derived from the FIRM tape file and the CARD file. A temporary file called SUMMARY is used to communicate the information summarized to the program which updates the HIST tape file. The travel data is processed by a package consisting of two programs written in PL/1 and the associated system and program control cards. The function of this package is to process survey results producing updated files and summary tables. There are two permanent tape files (FIRM and HIST) associated with this package. The first program, called FIRMPGM, reads the survey cards, updates the FIRM tape, produces survey cards for the newly added firms, and produces a SUMMARY file for use by the second program. The second program, called HISTPGM, uses the SUMMARY file as input, up- dates the HIST tape, and produces summary tables as output. Figure A-1 shows the flow chart for this program package. The following are brief descriptions of the two main program elements for TRAITS. FIRMPGM Procedure 1. Read to the end of OLDFIRM tape to obtain the next available values for hotel, campground, and park identifying numbers. These values were placed in the trailer record by the previous run of this program. 2. Rewind OLDFIRM tape in preparation for reread. 3. Merge the CARD file and the OLDFIRM tape for all survey results from firms previously responding, producing the NEW FIRM tape. This merge is done on a data field basis rather than a record basis, pro- ducing records in NEWFIRM that have the most re- cent data from either the CARD file or OLDFIRM tape, with the CARD file data being used in case a field is supplied in both. 4. Delete firms that have ceased operations via the $DELETEcard. 5. Add new firms by entering them on the NEW- FIRM tape and punch cards, giving the identifying numbers that have been assigned to them by the program. 6. Concurrent with the merging, deleting, and adding process, accumulate values by travel council and establishment type to be used in the next step to supply data that has been omitted from some returns. 7. Write the trailer record to reflect new assignments of identifying numbers. 8. Reread the NEWFIRM tape, fill in missing data from averages calculated in the previous step and pro- cedure summary reports. This is done for each travel council and as statewide totals. 9. Write this data (8) to the SUMMARY file. SUMMARY is a temporary data set left on direct access storage for HISTPGM. HISTPGM Procedure 1. Read the SUMMARY file left by FIRMPGM and build a record for the HIST tape. 2. Copy the OLDHIST tape to the NEWHIST tape and add the new record created from the SUMMARY file. 3. Concurrently, accumulate all data from OLDHIST (eventually to yield overall averages) and obtain the record for the previous reporting period and the re- porting period one year ago. 4. Format and print out summary report tables are done by establishment type, by travel council, and for statewide totals. 265 SURVEY CARDS MESSAGES NEW FIRM CARDS TABLES FIRM PGM SUMMARY DATA HIST PGM TRAITS PROGRAM FLOW CHART 266 HARRISON COUNTY BUSINESS SURVEY PROGRAM DESCRIPTION The program designed for the analysis of survey data collected from Harrison County businesses is written in SAS .76 and has been successfully run on both Versions 76.5 and 76.6 of SAS in the West Virginia Network computing environment. The purpose of the program is to prepare the raw data received for analysis using Chi square contingency tables, Spearman correlation tests, and other nonparametric statistical methods. Although the program was written to perform statistical analysis of the data from the first survey, the program is so structured to allow the user maximum flexibility for tailoring the analysis as he/she deems most appropriate based on the raw data received for the particular survey under examination. The structure of the program is as described below: BLOCK I Input the raw data from the survey. Print the raw data and provide frequencies for each data item. BLOCK II BLOCK III BLOCK IV BLOCK V Based on the results of BLOCK II, adjust the raw data for errors made on the survey fornr ' resulting from miscoding for key punching, or v ' generated during keypunching. This block will prove unique for each survey. Change the corrected data into a form that is more meaningful for intepretation or necessary for calculating indices or both. Calculate any indices desired and make remaining adjustments necessary for the validity of the statistical data to be performed, e.g. collapsing categories to meet minimum frequency requirements for Chi Square analysis. Perform statistical analysis. 267 Included as a part of this Appendix is the program source listing which is well documented to indicate * ' the limits of the blocks described above, (3) the data manipulation effected within each block, the correspondence of (4) variable names with survey items, control cards required for program (5) execution in the WVNET processing environment, and data format as required for input to the program. Also included is the survey questionnaire on which the program is based. Along the right hand margin are blocks for recording responses to the survey along with card columns indicated in which codes for the responses are to be punched. Finally, the procedure for preparing and analyzing the survey data as related to computer processing is described as follows: - STEP 1 Once the surveys have been completed and returned, the responses must be coded in the blocks along the right hand margin of the questionnaires. - STEP 2 The questionnaires are then submitted for keypunching and verification. - STEP 3 When the questionnaires are returned, a backup for the data should be prepared. This can be accomplished by copying the data to a backup tape or cards for storage. A second file, generally on tape, should be created for use by the analysis program. - STEP 4 Program control cards should be adjusted for the file to be used along with any other preliminary adjustments to the program. - STEP 5 The program should be run initially for examination of the adjusted raw data and frequencies (BLOCKS I & II). - STEP 6 Corrections as described in BLOCK III should be made a part of the program. 268 - STEP 7 Adjustments as outlined in BLOCK IV should be added to the program. - STEP 8 The program analysis section should be designed and appended to the program. - STEP 9 Statistical analysis should begin at this point with Steps 7, 8, and 9, representing an iterative process, continued until the analysis is complete. It should be noted that the above described procedure as well as the included source code containing additional documentation are both quite general and are provided only as a guide for those analyzing subsequent survey data. Each survey conducted should be analyzed in a fashion tailored to meet the needs of the analysts charged with the responsibility of reporting the survey results. 269 Appendix I I I -A PRODUCT EVALUATION GUIDELINES The following set of questions may serve as guidelines for the types of observations to be made or questions to be asked in an on-site visit to evaluate the tourism potential of an attraction or facility. 1 . Signing/Directions to facility Are there any directional signs for the facility? Is there a sign in advance of the site forewarning a visitor, especially a driver, of the entrance/parking area? Is the facility identified with a sign in front of the facility or name on the building? 2. Access Is the attraction accessible to a visitor? (Can the facility be entered or is it a private residence? Can a visitor find the way into the facility?) How long (time and distance) is the drive/walk from main highway/street? Is the road/walkway easy to travel (good repair, easy to follow, not too narrow, etc.?) Is the entrance to the facility in plain sight and/or clearly marked? Is the attraction/facility accessible to travelers arriving in the area by bus, airplane, or train? Are taxi's or limousine's available to the fac i 1 i ty /attract ion? Are most local people, including taxi drivers, bus drivers, etc. aware of the facility and its location? Is the facility accessible to the handicapped? 3. Parking Is there parking space on the premises? Is there parking space nearby? How long (time and distance) a wal k to the faci 1 i ty? Does the existing parking space appear to be adequate for present visitors? Would it be adequate for an increased number of visitors? Is the parking area easy to reach from main highway/road? Is the parking area, and walkway to/from it, well lit? Is the parking free, metered, charged for hourly by attendant? If not free, what is the charge? How long can a person park there (e.g., maximum time on a meter?) 270 k. Appearance/Upkeep Is the attraction/building and surrounding grounds attractive in appearance? Does it make a positive impression on a visitor? Are the buildings/grounds well maintained (e.g., fresh paint, grass and shrubs trimmed, signs in place, steps and sidewalks in good repair, etc.?) Is the surrounding area near the attraction attractive and well maintained (e.g., the nearby homes or commercial buildings, and the neighborhood in general?) 5. Admission Fee Is there an admission fee? If so, how much is it? Are there different rates for children/adults, the elderly? Are there group rates or agent discounts? What methods of payment are possible (e.g., credit cards, travelers checks, personal checks?) Is the admission fee structure appropriate for the attraction in light of what the attraction offers, and charges made for similar nearby attractions? If there is no admission fee, should there be one? Are there any reasons why admission could not be charged? 6. Hours/Season of Operation When is the attraction/facility open to visitors? (Hours of the day, weekday /weekend variation, seasonal variations) If a performance or exhibit attraction (e.g., community theater group, art/cultural center), how many performances/showings are offered each year and what is the seasonal timing (fall, spring? etc.) or dates for each? Are the hours/season of operation appropriate for the needs of the traveler/tourist? (Are they open when travelers are most likely to want to visit?) If not, what problems exist in extending/increasing or changing hours of operation (e.g., staffing, heating/plumbing, availabil ity, etc.?) 7. Personal Information/Hospl tal i ty Is there generally someone on the premises to greet visitors, answer questions? Do the personnel make a genuine effort to be friendly to visitors, meet the needs of the traveler? Have the personnel received any training or guidance in what a traveler's needs are, how to extend hospitality? 271 &..' Tours Are guided tours available? If so, when are they offered? (Time of day, days of the week, seasonal variations) Are prior agreements/reservations required? Are there any limitations as to age, mobility, etc.? Are the tour times appropriate to serve tourists/travelers? Is there a separate charge for the tour? Are discounts available for groups? What is the maximum size group the facility can handle? Are self-guided tours available? If there are no totirs available, should there be? Would it be possible and appropriate? Would guided tours or self-guided tours be more appropriate? 9. Programming/Events/Act? v? ties What types of activities are available that would be of interest to travelers/tour i sts? programs Outdoor Recreation facilities: events pool/swimming area activities for adults picnic area activities for children shelter museum playground historical /interpretive adul t/recreat ion /games materials (tennis, horseshoes, volleyball, basketball, etc.) exhibits/displays table games (ping pong, etc.) Approximately how many people can these activities accommodate in one group? 10. Gift Shop Is there a gift/souvenir shop? Do they accept credit cards, and if so, which ones? Will they ship bulky items? What type gifts/souvenirs are offered? How much variety is there in quality, price range, manufacturers represented? Are the products offered represented of a local or regional specializa- tion (e.g., West Virginia glass sold in West Virginia) or are they imported/commercial souvenirs? 272 1 1 . Food Service Is there a restaurant or concessions stand on the premises? Nearby? How attractive would it be to a tourist/traveler? What kind/variety of food is available? (e.g., snacks, sandwiches, full dinners, cocktails) Is it primarily a family restaurant or an evening entertainment restaurant? Are credit cards accepted? Are picnic facilities available? 1 2. Rest Rooms/Comfort Facilities Are rest rooms available? Are they readily accessible and identified? Are they well maintained? If rest rooms are not available on premises, where nearby are they ava i 1 a b 1 e ? Is there a drinking fountain on the premises? Is there place to sit -down to rest? 1 3* Publ ic Telephone Is there a public telephone available? Is it readily identifiable? Are there phone directories available? 1 4. Brochures and Promotion Does the attract ion. put out its own brochure? If so, does it include: a ) description of facility, events, exhibits, etc.? b) directions to the attraction/facility c) hours/season of operation d) admission fee, if there is one, or note that admission is free e) phone number, address to obtain further information Is the brochure format attractive? How is the brochure distributed? 273 Does the attraction/facility participate in other promotional activities: a) combined brochures (joint efforts with others) b) cooperative tours, special offers c) advertising (e.g., newspaper, radio, TV) d) yellow pages listing (if appropriate) e) travel promotion group's activities f) other If so, how often are these activities engaged in? What media are used for advertising? Are samples available for evaluation? 1 5. Present Level of Business What "customers" are presently being served? That is, who visits the attraction? school groups tour groups families with children young people older couples/elderly other From what geographic areas or states do present visitors originate? Is this logically the prime market(s)? What other market segments might be attracted to the facility? Is there any count kept of the approximate number of visitors? Is it available on a yearly basis, monthly, for special events? Are guest registers used? If so, could they be made available for analysis by the travel development or research group? What is the present level of use (occupancy rate)? a) seasonally Is there a peak season? An off-season? b) weekday vs. weekend When would additional visitors be desirable? What is the maximum size group that can presently be accommodated? (Hotel /motel /restaurants: Are there facilities for convention groups, meetings? How many people can be accommodated?) 16. Future Development Plans What future development is planned? (Additional attractions, improved facilities, new/renovated buildings, personnel additions, etc.) 21k What type future developments, in addition to any above, would be desirable to person (s) operating/managing the facility? What problems does the manager/operator perceive that might hinder such development? What factors limit future development (e.g., limited space for expansion, poor access roads, lack of parking space?) To what extent could these limiting factors be changed to allow for development? What time frame would be required? 275 Appendix III-B RATING PRODUCT DEVELOPMENT IDEAS ! i West Virginia _ _ . .. i MORGANTOWN, WEST VIRGINIA 26506 University t College of Bu9inessandpconomics March 3, 1978 304 / 3 293- : BS7f 293-4495 Mr. Paul Shill cock City Planner City Hall West Pike Clarksburg, West Virginia 26301 Dear Paul : This letter is, first, to thank you for attending and participating in the meeting at Clarksburg on Monday, February 27th. It was a very profitable meeting. You may be surprised to see how many good ideas came out of it. Enclosed is a summary of these ideas and the discussion that took place. The second purpose of this letter is to ask for your assistance in evaluating the ideas you developed. A one-page evaluation form is enclosed. We'd appreciate your returning this form to us with your evaluation, and your comments and/or additional ideas. Finally, we need a name for your group. Enclosed is a "ballot" on which to register your "vote," or make suggestions for a name. If you would like to comment, add other ideas or pose questions, please do so! We appreciate your help and value your ideas! Sincerely, &yUL<&~' James M. Rovelstad Professor of Marketing Project Director JMR/nsf end . 276 03 +J Ol c en 01 3 l/> o o s- <_3 tt) x: o> ■!-> £ 01 O JZ i- 4-» C i x: o a at * $- 5 O a> - -o cr V) ai , c 03 4J •*— •r- T3 T- ^- C re 73 > X)ll.< VI ET3 re O C 01 S- re ai c i/> E o a m u) >, OI1--I-+* >- $- $- c O 3 i- 3 C O fO o •-• I— = o ai > OJ re s a. o UJ o 2 o z o < _l < UJ re r— Xt ai •r- XI m W T3 O r— a. 3 O 1. u o «•- 1 o / c— CM. a> I XI (tS ■o at 4-> *. W ai ^- , XI re ^■^ XI V) £ r— Q. 3 10 5- ai o i- «4- o a. J- o Ol. C M4J at •«- T3 -t-> T- C •I- US- 3 > o ai E oo.cE J- E ai o O.M1CU at >, ■U 4J a> re •r— +j > 5- c J- 'r m a> 3 o at c fc Ol u OJ f- O. 0) U3 o 3 ce. ' o OO >» ■t-> +•> •r— a> in r— C5 -o *i— g: XI o 3 sz c +■> •f— o in re a. +j •i— >> XI r— OJ c o> o <*- •c— C 3 •i— o a. >» o o t- T3 3 O >> >• at Ol ^. 4J 't— re ^- u •#— ■* T3 o C o c 4-> •■ ai C a> 3 SL o sr o +-> r-~ in CSJ JT >- +J s- re C i- •r— 3 r. Ol +J -D s- c re OJ c. ■!-> 4-> o Ol re +J 01 +j OJ x: o -iz c ££ i — V T3 • re +-> ai H- 3 #— < — i XI c Q. O Lul O a. — in UJ i£ lO J $- OJ c ai o c ai O T- Ol •<- •^ XI ■•-> •!- •r- JZ r- X 4J -r- •i- uj >, re •— u oi E •«- re en i — Co u. c i— o re 1- O «4- U. C 3 J- C o o I— •-• E •r- ^- O +j cq a> +j o c 3 m j- ai m cr •<- i > m -r- i- 4J c re 4-> 3 in O r— C O Ol <_> o > c c in +J $- J* H- C at t- re 3 Ol CO J- ° c •" ™ O 'r- » cn re oi o> c U% ■*-> C C *r- m c •■- •!- g. O 3 J«i -O E $_ o •«- -r- re u S I a: o o> ■t-> ■o c 3 o s- CT) a. E re ■o Ol ■o 3 o 3 x: o o 5- co 3 o o HELP SELECT A NAME FOR YOUR GROUP It seems as though every "committee" has to have a name and we thought yours should too. Several possible names are listed on the ballot below. Vote for your favorite--or add a "write-in candidate." Return your ballot 1n the business reply envelope provided. After our group of independent judges have tabulated the results, we will advise you of the winner. □ □ □ D D □. □ D BALLOT TOURISM ADVISORY GROUP TRAVEL DEVELOPMENT ADVISORY GROUP COMMUNITY COUNCIL FOR TRAVEL DEVELOPMENT TOURISM DEVELOPMENT COUNCIL TRAVEL DEVELOPMENT ACTION COUNCIL 278 ATTRACTIONS AND FACILITIES Item Convention Facilities Discussion Currently cannot house large convention—have neither enough overnight accommodations nor sufficient meeting facilities Convention center could be impetus to add rooms/new hotel 1974 Downtown redevelopment study included plans for convention center for Clarksburg but no funding. Questions/Concerns Problem in attracting funds to build convention center if (when) potential revenues perceived as insufficient to sustain the facility. Glass Blowing Exhibition Exhibit entire process of making, blowing glass, in-the-round with viewing areas on all sides, (per 1965 World's Fair). Possibly also glass cutting and painting. Exhibit and sell glass made by all WV glass companies. Sell not only what's made at exhibit but all WV glass products. All WV glass companies sustain it and profit from glass sales. Consol Gas could run it. Possibly employ retired glass blowers one day/week each. Could be a model for similar exhibits in other parts of state. Would need an artist's drawing to sell it. Where to locate it. Could it be open by Fall 1979? Antique Troll ey Get a renovated trolley car and run it on old route between Fairmont and Clarksburg Tourist Infor- mation Center Discussion focused on current centers operated by state and by Mountaineer Country Travel Council Is there interest/potential for an information center in Harrison County? Restroom Facilities One aspect of travel in WV most critized by travelers: inadequate, run-down, poorly maintained at all levels, state, county and private (e.g. , gas stations). Use of business survey to ask questions of gas station operators re: restroom facilities as part of a two way learning process. 279 Item Cross Country Skiing OUTDOOR RECREATION Discussion Sport growing in popularity. Off season use of golf courses Questions/Concerns Is there enough snow? Mountaineering Ultimate in cross country skiing Over rough trails, mountain crags, etc. Hiking, Biking Trails Linking historic, scenic places Possible use of old railroad right of way. Permission required from landowners Attitude problems, e.g., candy wrappers, etc. Group to publish a map of tra i 1 s Riding Trails Little available for riding Private stable near Watters Smith Cannot use same trail for hiking and riding. Camping: RV Facilities Temporary hookups at hotel parking lot, access to showers Development of facilities at out- skirts of city. Identification of RV routes thru city. Additional types of facilities private campgrounds might provide, e.g. penny arcade, laundry facilities Low return for sizeable investment 280 SPECIAL EVENTS AND ACTIVITIES Item Discussion Questions/Concerns Guided Bus Tours Connecting a number of different Need to attract people from attractions within the county outside immediate area-- including such things as covered how do you tell them about bridges, Ft. New Salem, Watters it? Smith, glass factories, etc. Where do you find enough Draw from convention business customers for it? travelers 281 PROMOTION OF TRAVEL AND TOURISM Item Discussion Questions/Concerns County-Wide Lot-cost brochure for free distribution Brochure through gas stations, grocery stores, hotels, motels, etc. Highlight some activities for the businessman when he is not conducting business. Paid for by advertising. Include all attractions, activities, entertainment available throughout county. 282 West Virginia. University MORGANTOWN, WEST VIRGINIA 26506 College of Business andEconomics 304 / 293-4951 April 17, 1978 Dear The results of our recent "survey" of your opinions and evaluations of the projects discussed at our last meeting of the Harrison County Travel Development Council, have been compiled and a summary of the results is enclosed. Thank you for taking the time to complete these evaluations. This list of possible items for further development, and your evaluations, can serve as a starting point and broad guideline for our mutual travel development efforts. Also enclosed are the materials we promised to send — the Latchstring report for Mountaineer Country Travel Council and the report given to the White House Conference for Balanced National Growth and Economic Development. The results of the household telephone survey conducted in December have been tabulated and are being interpreted now. Vfe hope to be able to report some overall preliminary results shortly. Vfe also understand that there are exciting initiatives being taken in Clarksburg to pursue several of the ideas discussed at our last meeting. We will be contacting you soon to set up a meeting to discuss these developments and our current activities. Sincerely, Patricia E. Goeke Project Supervisor PEG/nsf Note: Travel Development Council (TDC) is the name selected for your group based on your ballots! 283 RESULTS OF EVALUATION OF TRAVEL DEVELOPMENT ALTERNATIVES The attached tables summarize the results of the evaluation of tourism development ideas by the Travel Development Council members responding to our questionnaire. The list of possible items for development was based on the discussion at our meeting on February 27, 1978. Each of the items was evaluated in terms of how likely each of the six steps or results listed could be achieved. The six areas of evaluation included: 1. ability to get funds 2. receive (generate) community support 3. provide important benefits to community 4. operate profitably 5. increase tourism in Harrison County 6. feasibility, aside from funding (e.g., land available) The rating scale used was: 1 = probable 2 = possible 3 = improbable In compiling the attached tables the average rating for each item in each catagory was calculated. The six evaluation areas were combined into three factors: (a) support, benefits and increased tourism (2, 3, & 5) (b) funds and feasibility (1 & 6) (c) operate profitably (4) The ranks assigned in each of the tables merely reflect relative position based on the average rating score. The lower average rating indicates the items considered most probable, and the low rank similarly signifies most probable. In Table 1 the items were ranked only within the two broad classifications of (1) Attractions and Facilities, and (2) Outdoor Recreation. In Table 2 all items are ranked relative to the whole range of possible development projects included on the evaluation form. As can be seen in Table 1, among attractions and facilities, the convention center ranked first for support/benefits/increased tourism, tied for second in profitability, but ranked fourth for funds/feasibility. The glass blowing exhibit ranked first in funds/feasibility and profitability, and second for support/benefit/increased tourism. 284 -2- In the area of outdoor recreation there was less difference in the item ranks among the three areas of evaluation. Ranked first, second, and third were improvements in camping facilities, RV facilities and riding trails. Not surprisingly, cross country skiing and mountaineering ranked least probable of the outdoor recreation opportunities. The relative importance of the guided bus tour and the country-wide promotional brochure can be seen in Table 2. Compared with all the possible development options, the brochure ranked first for benefits/ support/increased tourism, first in funds/feasibility and tied for third for profitability. The bus tour ranked rather low in all areas except profitability. Considering these project evaluations from a slightly different perspective, Table 3 groups the items as either short term projects (could be implemented, fully or in part, Within approximately one year) or long term projects (requiring more than one year for planning, development, funding, etc.). Some items such as camping facilities include both short term phases (e.g., the addition of services or attractions as existing campgrounds) and long term aspects (new campground development). For this fable, if any part of the project could be in place within the short term of one year, the item was included among the short term projects. Clearly among the short term projects, the brochure, RV facilities and camping facilities were considered most probable. Among the long term projects the glass blowing exhibit appears highly probable. The convention center ranks first for support/benefits/increased tourism but received a middle rank for funds/feasibility and profitability Those ranked least probable among the long term projects were the antique trolley, cross country skiing, and mountaineering. The relative ranks of each of these projects can only be considered as reflecting preliminary evaluation of a limited number of possible tourism development projects. However, these summary tables provide some insight into both the project's thought to provide the greatest benefits and into the perceived difficulty (probability of obtaining funding/feasibility/profitability) related to implementing each project. These ratings will help focus attention on which specific projects are most desirable to pursue and on those aspects of a project most likely to require special efforts if the desired development is to take place. 285 t/> h- o LU •"3 o or a. z in s: Ol. o Q s o O- CU OT o a: o o o o o z o c h- CD ca -a -«^ CU 4-> tO J- to o cu CL $_ a. o GO I-H cu en en to c J- f- Q> +■> > to «a < or to or a> en a> ro c $- T- > to CU J* -»-> C » o o co t^ CM CO 00 CO f^. r-l CM LO CO «d" CO CO f^» O CO CO ooMnin -r- •r-l- CU • — C 4-> J* 1- -r- N— >> CU T- t/> 4-> O CU O i— cn en *r- to cni — ••— c >> c C tO lO i — U- C r— • O o J- T- •!- r- cu •«- •r- O O fO •I— 4-> s- -v t- t- o TD c ^ l. t»- U- 4-> C CU T- (O 4-> to C o O 1— c to Z3 CU CO $_ -r- U_ «o •i— i — t— t EE CD O C 1— r- +-> CO CU o J- t_> •!— * *r- en LO C 3 i— O o to en en o c: c cu to cr cu s- cu to +-> c C ro -r- o > to v- > +-> or to C T- «f- U_ Q. •1— c to +•» fO to O 3 ^^ -O E 4-> O r— C J- CU $- $_ O -r- •!- >• fO O ocd <: h- or o o s: re or or o «J o s~ -o 4-* 4-> 286 3 r-l CM CO z to or CM - cc H-Q. z ID I— o z C_> UJ s: z D_ oo CO _J •-H UJ «: > CC UJ c o (O Id > rd o rd $- a> •a s- o 24 C rd OS ■M CO en c •r- ■M rd <~» a; «3- r^. 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Rating Funds and Feasibility Rank Avg. Rating SHORT TERM (Approx. 1 year) Brochure 1 1.17 1 1.25 Bus Tours 5 1.63 6 1.95 Hiking/Bike Trails 6 1.77 4.5* 1.85 Riding Trails 4 . 1.50 4.5* 1.85 RV Facilities 3 1.53 3 1.65 Camping Facil. 2 1.43 2 1.40 Operate Profitability Rank Avg. Rating 2.5 1.8 4.5 2.0 6 2.2 4.5 2.0 2.5 1.8 1 1.7 LONG TERM (More than 1 yr.) Convention 1 1.27 4 1.85 Glass Blowing 2 1.30 1 1.45 Trol 1 ey 5 1.80 6 2.15 Infor. Center 3 1.33 2 1.50 Rest Room Facil . 4 1.77 3 1.55 Cross Ctry. Ski 6. 5 2.03 5 1.90 Mountaineering 6. 5 2.03 7 2.25 3.5 2.3 1 1.4 3.5 2.3 5.5 2.5 7 2.7 2 2.1 5.5 2.5 RATING SCALE 1 = probable 2 = Possible 3 = Improbable *Midranks used to indicate ties 288 Appendix III-C SAMPLE PACKAGE TOUR Btackwoter Falls Mini Tour 289 The Tour The Blackwater Falls Mini Tour will take you into the foothills of the Allegheny Mountains. As you leave Clarksburg you are at an elevation of some 900 feet, and as you picnic at beautiful Black- water Falls you will be at an elevation of 3,340 feet. The tour covers 188 miles of West Virginia mountains, makes eight well-planned stops, and takes ap- proximately 10 hours. The first attraction is the historic covered bridge at Philippi, site of the first land battle of the Civil War. Members of the Historical Society, dressed in period costumes, will greet you and add a special touch of authenticity to the visit. For those who love nature, Bowden Fish Hatchery will offer a look at the fascinations of fish and fishing in West Virginia. The Canaan Valley is rich in scenic beauty, wildlife, and recreational op- portunities. You may, weather permit- ting, view the breathtaking panorama of the Allegheny's from the ski lift ride. It is also possible to arrange an exhibition of Canaan's newest recreational hap- pening, Grass Skiing. From early spring to fall you may see a demonstration of this new, exciting sport. As the bus takes you to Canaan's Championship Golf Course, you will see three beaver dams, a rare site, as the only known colonies of beaver east of the Mississippi are found in Maine and West Virginia. A hot & hearty spread of typical moun- tain food will tempt your taste buds as you picnic on the Blackwater Falls overlook. Enjoy fried chicken, corn bread, beans and other West Virginia delicacies while you view one of natures gifts to our state, Blackwater Falls. As the tour-continues, you will also visit Blackwater Lodge, the Smallest Church in 48 states, Tygart Lodge, and Tygart Lake Dam. You'll take home lasting memories of your visit to these special West Virginia places. Be sure to bring rain protection in case of showers, and a jacket for cool weather. The Blackwater Falls Mini Tour offers a look at an area that has it all,. . .history scenery. . .wildlife. . .and an abundance of recreational opportunities for everyone. Take the Blackwater Falls Mini Tour. . . and take a look at West Virginia at it's very best. . .Wild and Wonderful. 290 Itinerary Each Blackwater Falls Mini Tour is in- dividually designed to meet the needs of your group. The itinerary below in- cludes the basics of our tour; you may discuss options at the time of booking. Each bus has a Sheraton tour direc- tor on board. Liquid refreshments will be served on the bus and are included in the price of the tour. Distance: 188 miles -Time: IOV2 hours Travel Wait * 9:00 am Depart Sheraton Inn 9:35 am Philippi Covered Bridge 15min. 10:40 am Bowden Federal Fish 20min. Hatchery 11:35 am Canaan Ski Lift Ride 55min. 12:30 pm Beaver Dams no stop 12:55 pm Canaan Golf Course no stop 1:30 pm Blackwater Falls Overlook 60 min. 2:40 pm Blackwater Falls 60 min. 4:00 pm Blackwater Lodge 20 min. 4:45 pm Smallest Church 15 min. 6: 15 pm Tygart Lake Lodge 30 min. 7:15 pm Sheraton Inn, Clarksburg 'Departure time may vary according to the size of your tour group. The Blackwater Falls Mini Tour includes the tour itinerary outlined above for Saturday and lodging Saturday night at the Clarksburg Sheraton Inn. Two Day Tour Option You may arrive in Clarksburg on Friday evening, stay overnight at the Sheraton and make the tour as described above on Saturday. Friday evening you will visit historic Fort New Salem for a taste of authentic Appalachian culture. You will tour the Fort and be served pioneer-style refreshments and desserts. Rates Per Person Room Picnic Luggage in & out Tour refreshments Guides Service assistance $12.75 $12.75 38 tax 4.00 .12 tax 1.50 1.50 1.50 1.50 Admission to attractions featured on the tour are subject to change beyond our control and will be quoted at the time of booking. All rates are based on double oc- cupancy. Rates per person are net. Additional mileage for buses is 188 miles. Your Route 1/ j i-=-t '. > "■' Bucfchonno?, 1 N I ° S Trn onjfV RoOnokc <->( > Vo..Jo/. U _ All "1 - f:?:'. 291 Appendix II I -D TEST ADVERTISING MATERIALS For more information write: MCTCR, P. O. Box 1197, Morgantown, WV 26505 Nome Address City, State & Zip Code Sample Newspaper Advertisement 292 RADIO AD SCRIPT Is the energy crisis making it difficult for you to take that long needed vacation? Are you wondering how to get away from the city? Well we have something just for you and your family .... a mini -vacation that is no more than a tank of gas away ... a weekend of almost heaven in north central West Virginia. Discover historic forts, covered bridges, mountain crafts and hand-blown glass. Relax and enjoy picnicing, swimming, hiking or fishing. Take in the unforgettable mountain scenery. All this -- and you don't have to spend a bundle. A weekend of almost heaven includes special discount rates for hotel, meals and several attractions. Even tours and transportation can be arranged at special discount rates. If this sounds like almost heaven to you, write us for more information. The address is: MCTC, Box 1197, Morgantown, WV, 26505. Of look for the ad that will be appearing in your Sunday (insert name of paper). If you can't wait, the address again is: MCTC, Box 1197, Morgantown, WV, 26505. 293 DODDRIDGE HARRISON LEWIS MARION MONONGALIA PRESTON TAYLOR UPSHUR Sample Letter Sent to Persons Responding to Advertising MOUNTAINEER COUNTRY TRAVEL COUNCIL , Inc. P. 0. Box 1 1 97 (304) 599-1680 Morgantown, W. Va. 26505 OFFICERS TOM WYONf, PRESIDENT ANITA SANDOR, VICE-PRESIDENT JAMES C. WALKER, SECRETARY CLARK RITCHIE, TREASURER EXECUTIVE DIRECTOR A WEEKEND OF ALMOST HEAVEN IS SALLY L. STERNBACH BOARD OF DIRECTORS BARBOUR COUNTY STEPHEN L. DOUGLAS BERNARD DENNIS the freedom to set your own pace and choose among a variety of attractions and recreation opportunities. the stir of the revolutionary period when uniformed militia demonstrate 18th century drills and weaponry at Prickett's Fort. a picnic lunch (packed by the hotel staff) at Watters Smith Memorial State Park and time to swim, hike, enjoy the mountain greenery and visit the pioneer farm homestead and museum. DODDRIDGE COUNTY ( VACANCY ) HARRISON COUNTY LEE CASTRO LESTER W. BURNSIDE, JR. LEWIS COUNTY ROBERT H. CREAOICK JOHN D. BRYANT a chance to meet the master craftsmen at work in printing, blacksmithing, basketry, cabinet making and more at the reconstructed colonial settlement of Fort New Salem. the luxury of outstanding hotel accommodations and meals at a heavenly price (guaranteed through Labor Day, 1979), and the friendly hotel staff to help you plan a weekend with a bit of heaven for everyone in your family. MARION COUNTY C. L. SMITHSON TOM WYONT MONONGALIA COUNTY JAMES M. ROVELSTAD CLARK RITCHIE PRESTON COUNTY JERRY ASH BILL REEVES TAYLOR COUNTY DICK LEONARD ANITA SANDOR UPSHUR COUNTY J. D. HINKLE, III FRED RU8MISELL all within 200 miles from home at the crossroads of I 79 and U.S. 50. plus discount coupons Fort New Salem. for admission to Prickett's Fort and The enclosed brochures provide additional details. Reservations, the hotel brochure (including a map of West Virginia), or additional information may be obtained by calling (304) 623-3731 or writing Sheraton Inn, P.O. Box 949, Clarksburg, WV 26301. Or write us at the address above for additional information on specific attractions or activities of interest to you. Join us for a weekend of almost heaven! AT LARGE HOMER CARMICHAEL DAVID H. JONES DEANIC VANCAMP Oa/4 ^ >J&*sn/**LjL 294 MOUNTAINEER COUNTRY TRAVEL COUNCIL, INC., is a non-profit, tax-exempt organization promoting travel and tourism In We«t Virginia'! nine north central counties. Discount Coupons Sent to Persons Responding to Advertising A WEEKEND OF ALMOST HEAVEN FORT NEW SALEM Salem, West Virginia This card entitles bearer and family members to */3 OFF regular adult admission charge and x h OFF regular admission for children. Offer good through Labor Day, 1 979 Closed on Mondays and Tuesdays A WEEKEND OF ALMOST HEAVEN PRICKETT'S FORT STATE PARK Fairmont, West Virginia This card entitles bearer and family members to V3 OFF regular admission charge. Offer good through Labor Day, 1 979 295 ® m o-55 c O 03 o o c: *— l_ a ■o o o c3 T3 O co E 11 C ■=oo ~ i » o co C c £ «3 CO *; G3 -j-* A" c CO o J 2 SB is ■*-' c O. ~o 03 =J 03 —^ 03 > O 03 O 03 £ , ^ 03 >,.* in ^ i= yU m >• H and i fii 1 we nish 03 C = > 03 — PS -<= 03 ™ * _ 03 -^ C3 Qj CO 3 -j= co O < 03 >% ™ co 2 1 > P -O i- >. = 14 CO 03 > CO ° 13 03 c ° \_ = £ o £ >. 03 CO 3 03 > 03 = s « o >-> O) > 03 C CO O T3 £ >* E co ■ — C — P0 "Sj "I 1 — i— co ® UJ o«= c = Q. CO CO 03 C W 03 P8 — 03 o S 296 THIS IS THE SMALL PRINT YOU [ARE SUPPOSED, TO LOOK OUT FOR* First of all the Mountaineer Weekend is based on double occupancy; for single occupancy add $8 .00 per day. There is no room charge for children occupying the same room as their parents. These quoted rates are subject to 3% State Sales Tax. There are no gratuities included in the package because our staff feels the tip should be at your discretion based on their service and accommodations. We feel our meal selections to be excellent but if you would like to choose from our menu you will be given full credit for the meal being substituted. Admission charges to the paid attractions are not included. This package rate does not apply to conventions or groups using our banquet facilities. No transportation charges are included in the package rate. We do guarantee all prices quoted in this brochure. Reservations, the hotel brochure (which includes a map of West Virginia), or additional information may be obtained by telephone (304) 623-3731 or writing Sheraton Inn, P.O. Box 949, Clarksburg, WV 26301; for reservations only toll free 800-325-3535. o CO co" CD CD s* ROAD and take a rid day on an old time L TRAIN as it puffs its rugged wilderness co ing two thousand, thr feet to Bald Knob, th highest point in West a whole different way Allegheny foothills an through THE,SHERA MOUNTAINEER WE «■■ 3 CD CO e into yester OGGING way througt untry climb- ee hundred e second Virginia. It: of life in th id all availab TON EKEND. ■■1 o 00* |33 = 5-™ sra| o en _| 3 8 m: S 2. S Q. o < ■ Si- v> 5; 2/ < ■ CD . I P"P 2-"C °» Z =? ' cj-a -> 3=5-3 cu o a. CD C/9 CS) — o S 5S 2 >' 3 3 ■ c/5 CD - ■■< -o S - ■ CD . = CD - < re cr i = cu OJ ST = s >CD " UK CD CD 33 Q. -I t/» =< CD o»S n*< -i V cd co ^ a. ^- . CD r* ^r^r * CD Q- so 2 £ CD *Q 3D CD > O — , a; p- „ o-^c sis' < f" CD o » i — , 3.-= =; «> 5' ~ "-S = « 3 22. r~- 2" — >^CD = Oo ^ -^ ^ — f tu ■Tl 30 CD cd — a o. O ? w m2. *",2 3" CO — vt S cd - = = -• -sll w — 6» o o CD 3 3 « ? OCD CQ -Q S 0> cd m° CD f— C -K = O — CD — > CO 22 S S = is o CD ^ »-» > = ST i - „- °" K»» a c/> _, o m = o o ] < Q. Q.. 1 =: P" £ »-+ Qi rr to O Q> -1w- tJ " O C O ftj =3 >CQ I— =" *_.3 3 ^Oj aj := , -2-cg"g.3Eo O CD OCD — r-5:° cd ^ o o CD cu CD ~i 5 3 CD cd ^'22. = "5 O; CD JT i"< 2 ' =; o fi» 297 Appendix IV Proposed Amendments to the Overall Economic Development Program for The Region VI Planning and Development Council I. Potentials for Economic Development in Tourism A. Rationale Travel and tourism as an industry is already a $69.3 million industry for Region VI, and employs an estimated 5,100 persons. Exhibit I shows these data for all of the counties in West Virginia. * In fact in total sales, travel and tourism business constitutes the third largest industry in the state. The travel industry is especially well suited for selection as a high priority area for inclusion in a strategy for economic development because it satisfies important criteria for successful implementation. 1. It largely is a part of the services sector, which has been and is the fastest growing sector of the economy, and all indications are that this will continue. 2. It provides proportionately more employment opportunities for many categories of persons frequently found among the chronically unemployed, or underdeveloped—youth, minorities, and female heads of households. 2 3. The tourism labor market is largely non-competitive with the labor market for other industries, partly for the reasons cited in 2, above. 1. Patricia E. Goeke, West Virginia Travel: 1976-77 (Morgantown, West Virginia: Bureau of Business Research, West Virginia University, 1978) pp. 4, 5. 2. Discover America Travel Organization, "Travel: An Engine of Employment," (Washington, D.C.: Discover America Travel Organization, 1977) p. 9. 298 4. Although some components of the tourism industry experience seasonality effects, this may be desirable in many regions for several categories of prospective employee--e.g. , students, public school teachers, spouses wishing to supplement family income, but not wanting full time/year around jobs. 5. For many rural areas, or regions lacking adequate infrastructure or not having sufficient land area suitable for new manufacturing facilities, tourism offers the only alternative for local employment 6. Most tourism business and facilities also serve local residents, and the additional demand provided from travelers 1s needed to justify the provision of such facilities. 7. Development of a major tourism facility provides a basis for private sector entrepreneurship to create new, or retain existing, small businesses—over 95 percent of tourism business is small business--, 3 which without some central thrust would not be feasible, B. Potentials and Constraints in Region VI Research carried out by West Virginia University (WVU) for the West Virginia Governor's Office of Economic and Community Development (GOECD — formerly the Department of Commerce) has disclosed both the potential for accelerated tourism development in the state, and the concomitant need for new capital investment in facilities to achieve this growth. 4*5 The GOECD has integrated such plans for economic development through tourism into its overall development strategy. 3. Ibid , p. 11. 4. Goeke, West Virginia Travel: 1976-77 , p. 7. 5. James M. Rovelstad, Analytical Measures of Travel and Tourism: the West Virginia Model (Morgantown, West Virginia: Bureau of Business Research, 1974) PP 27-30. rr 299 Region VI is in a unique position to be one of the first areas of the state to formally initiate tourism development components into its Overall Economic Development Strategy (OEDP). The six counties of the Region are included among the nine counties of the Mountaineer Country Travel Council region (MCTC), which currently is the site of a research demonstration project to develop and test guidelines for rural areas and smaller cities to use in designing comprehensive investment strategies for economic growth and job creation through travel and tourism. This project is sponsored by the GOECD, WVU, the U.S. Travel Service (USTS) and the Economic Development Administration (EDA)--both agencies of the U.S. Department of Commerce, plus the Employment and Training Administration of the U.S. Department of Labor (DOL), and the Small Business Administration (SBA). It will result in a publication, Creating Economic Growth and Jobs Through Travel and Tourism: A Manual for Community Developers . The principal focus of the demonstration project within MCTC and Region VI is Harrison County. Thus, this county is ahead of others in acquiring the data needed to define its travel and tourism component of the regions OEDP. The geographic relationships of MCTC, Region VI, and Harrison County are shown in Exhibit II. In addition to the general factors favoring tourism development described in Section I-A, the research results from the demonstration project have disclosed or highlighted the following specific factors relevant to tourism development in MCTC/Harriscn County: 1. Residents of the county would favor and support a growing tourism industry as shown in Exhibit III. 2. Businesses in the county would favor and support growth in the tourism industry as shown in Exhibit IV. 3. The interstate highway/Appalachian corridor highway system has been 300 completed throughout the county and region, but this as yet remains largely unaccompanied by the development of service facilities for travelers. 4. Occupancy, rates for existing hotel/motel lodgings (71.6%) for Harrison County already are higher than the national level (63.0%), and above the statewide average (61.2%). Thus, only marginal increases in tourism can be generated until additional lodging facilities are available. 5. Activities and attractions for visitors are relatively limited, so the ratio of business to pleasure travel in the area (2.6:1) is much larger than that for the state (1:1) or the U.S. as a whole (1.5:1). ^ This is another area where new development is needed. 6. Camping facilities are relatively limited, and occupancy rates (30.0%) are lower than the state average (40.1%). But additional facilities would be needed to increase this market substantially. 7. There are a substantial number of natural and historic places and areas which would, or could, complement new developments in attractions and facilities. Exhibits V, VI, and VII provide a summary of some of these. 8. Public infrastructure (water, sewage, power, etc.) in the major cities and towns is already generally available to support new tourism related facilities, but is less available in many of the rural areas. 9. Unemployment in the county averages on the order of 6-7 percent overall. This would provide a potential work force of 2,000 to 2,300 for 6. Unpublished data, Bureau of Business Research, West Virginia University, Morgantown, West Virginia, 1978 30 employment in tourism. Of these unemployed persons, it is estimated that over half probably come from the special segments identified earlier. 10. Recent, or planned, developments of suburban/rural area shopping malls on the MCTC region in general have posed threats to older central business districts. Thus economic development that would complement existing business in these areas, and serve to build customer traffic, would be especially desirable. 302 II. Development Strategy and Plan for Implementation "Development" of the Region VI tourism potential, if broadly defined, encompasses both short run and longer run components. For the short run, say, up to one year; increased tourism will be largely a function of more effective use of existing facilities. New facilities, while they may be initiated from a planning and construction standpoint, will not produce benefits until completed—probably two or more years in the future. Additionally, the strategy described here contemplates geographic phasing, with initial emphasis being on Harrison County, and more detailed plans for other counties being added as the evaluation of potentials and needs for these areas progresses. A. Program and Project Selection Assumptions The underlying assumptions for the travel and tourism section development strategy are: 1. The reversal in the 1970's of population outmigration of the 1950's and 1960's in Region VI will continue for the forseeable future, thus leading to an increasing labor force and the general need for new employment opportunities. 2. The problems encountered in finding part or full time employment in traditional industries for young people, including students as well or others with few developed job skills, will continue in the region. 3. The relatively underdeveloped travel and tourism industry in West Virginia, coupled with the state's close proximity to major eastern metropolitan areas and the present and future constraints of energy/fuel shortages, provides a large as yet untapped potential for broad based travel industry development. 303 4. Given the fragmentation and lack of coordinatien of the tourism industry in general, and its relative lack of visibility to most citizens and businesses, achieving substantial economic growth and gains in job creation over a reasonable period of time will require public investment of time, and financial resources to initiate the development process. 5. Although potential exists for development in both urban and rural locations, the present availability of utilities plus the need to counter threats to central business districts, suggests that the initial emphasis be in the urban center. 6. Presently undeveloped areas adjacent to new super highways will be developed primarily by the private sector, except for rest areas and other typically public facilities. 7. Where federal, state or local government funds are employed for development, priority should be given to using these funds for projects which also include private sector capital wherever possible. B. Plan for Travel Industry Development The overall plan for travel industry development in Region VI constitutes a cooperative program involving a number of public and private organizations in its implementation. As described in the discussion of potentials, it relates initially to the existing demonstration project focused in Harrison County, so the organizational and development project emphasis also has its initial emphasis 304 in this county. As the data and plans are developed for additional counties, the organizational and planning emphasis will expand and/or shift in focus. The OEDP will be amended as these additions/changes are defined. Organizations involved in this initial phase of development include the following, in addition to local city and/or county governments. The Region VI Planning and Development Council staff will play a direct role in definition of the overall development plan, and in implementation of those parts of the plan in which federal funds will be directly involved. It also will assist in working with other organizations to implement the other components of the plan. The Mountaineer County Travel Council (MCTC) region is one of West Virginia's seven Regional Travel Councils (RTC's). The Regional Travel Councils (RTC's) are continuing quasi-trade organizations. They are supported by member- ship fees from private sector businesses, local organizations, local governments, individuals and by grants from the state government. Their purpose is to provide a framework for integration of the travel -related interests of their regions, to undertake, and/or foster development projects, regional promotion, and information programs, and to enhance the performance and growth of the travel industries in their regions. The RTC, and especially its executive director, for the region encompassing the demonstration county is, in effect, an unpaid member of the WVU demonstration project team. The Harrison County Travel Development Council (TDC) is located in the Region VI and MCTC area and is a volunteer group composed of community leaders from government, the general community business, and other sectors. It's role is to advise the developers as to community strengths, weaknesses, and needs, provide ideas for evaluation, and to critique the plan as it is defined. The TDC includes representatives from all aspects of community life, e.g., government, 305 general business- -including banks and manufacturing, the Regional VI Economic Development Council, mayors offices, the MCTC and the WVU research team. The TDC concept was created under the WVU demonstration project, and is one of the key integrating factors in developing the model planning guidelines being evaluated in Harrison County. It is planned that such a TDC be organized in any county /community in which investment strategies for growth through tourism are being developed. The West Virginia University demonstration project research team will provide the central organizational thrust to identify, evaluate, integrate potentials, and recommend the course(s) of action for a comprehensive tourism development strategy for Harrison County. WVU also will serve as a source of information for the other organizations as specific projects are identified and plans are developed. The planner's manual being prepared in this demonstration phase will serve to guide planners in other counties for future additions to the Region VI OEDP. However WVU will continue to serve as an advisor and information source for these future projects. The West Virginia Governor's Office of Economic and Community Development Travel Development Division provides the state-wide integrating force for economic development. It has, and is, funding the tourism research and data collection program at WVU, presently in cooperation with the U.S.T.S., E.D.A., D.O.L., and S.B.A. Additionally, the GOECD provides funding for the RTC's and provides promotion and development services ranging from identification of and working with potential investors, e.g., Holiday Inns, to assistance and coordination with federal and state funding sources, to specialized training and guidance in such areas as employee training and design of packaged tours. The GOECD staff have worked closely with all of the other organizations and city and county government in preparing this plan. 306 10 C. Overall Tourism Development Strategy—Harrison County The overall strategy for tourism development in the Harrison County area can be considered in two parts. The first is a short run strategy to get more optimal business profits, employment, and tax receipts from the existing tourism related facilities, attractions, events, and public infrastructure. This part of the plan largely will be the responsibility of local organizations, including MCTC, private organizations, and the business sector. Details of some of the types of specific activities to be included in this effort are provided in Exhibit VIII. These short run marketing activities will be very important in beginning the gradual process of building the markets for regional travel for the time when new or expanded facilities become available. Another component of the short run strategy is a program of building community and business awareness, acceptance, and knowledge of the benefits of increased travel and tourism activity and the facilities and features of the area that contribute to these benefits. This is a public relations program that is being designed and implemented on a model basis by WVU, and for future development areas would be handled by the RTC, and/or the TDC, with assistance from WVU and GOECD where needed. See Exhibit IX for example. The longer run strategy involves public and/or private capital investment. Here, too, WVU, working with Region VI and the TDC, has provided the initial leadership and guidance. The potentials and constraints discussed earlier provided general guidance in project identification, and these were further evaluated by the TDC representatives, GOECD and WVU to refine the possibilities. Exhibit X shows the results of the TDC evaluation of some of the potential projects. 307 11 Clarksburg Civic Convention/Cultural Center/Hotel Complex Priority: 1 Description: A complex consisting of a 7000-7500 seat convention facility/arena, a 200 room full service hotel, a cultural/exhibition center featuring a regional glass blowing exhibition and 100-200 seat auditorium, meeting rooms, and a 500 car parking complex. This project will complement the Clarksburg CBD, and also will serve in a major downtown urban renewal role for a presently decaying area. Direct Jobs Created: 200 during construction 250 full time after completion Amounts and Sources of Funds: Private sector (possibly including revenue bonds) $10,000,000 City of Clarksburg 4,500,000 Federal Agencies: HUD/UDAG $1,500,000 ARC 500,000 EDA 3,500,000 5,500,000 Total Estimated Project Cost $20,000,000 Expected Initiation/Completion Dates: 5/79-5/81 Status (10/1/78): City of Clarksburg has funded a $38,000 feasibility study by a team including Gandee, Thomas and Sprouse (Charleston and Clarksburg, W.Va.) and Ellerbee Associates (Minneapolis, Minn.). Preliminary reports verify the feasibility of the project. WVU and G0ECD are providing technical assistance. 308 12 Harrison County West Fork Park, Shinnston Priority: 2 Description: Approximately 60 acres of abandoned strip mine area to be reclaimed and developed into area park facility and county fair grounds. Direct Jobs Created: Not as yet determined Amounts and Sources of Funds: Harrison County/City of Shinnston Federal : DOI (H.C.R.S.) ARC 250,000 150,000 County: 100,000 Total Project Cost $500,000 Expected Initiation/Completion Dates: 1/79-3/80 Status: Funding proposal has been submitted to HCRS, U.S. Dept. of (10/31/78) the Interior and the Appalachian Regional Commission (ARC). 309 Salem College/Fort New Salem Historic Attraction Priority: 3 Description: This will be a project of continuing phased additions and improvements to an existing facility originally developed primarily for educational purposes. It is expected that ultimately the facilities will include lodgings, food service, craft sales and recreational facilities. Direct Jobs Created: Amounts and Sources of Funds: 2 in initial phase 100-150 when fully implemented Presently entirely from Salem College and Private sector-- estimates are not yet complete. Expected Initiation/Completion Dates: 10/78-5/83 Status (10/1/78) Initial phases including expansion and improvement of utilities and services, provision of limted food service, and expanded crafts sales services are underway. Plans for expansion of facilities are being developed by Salem College, with technical assistance from WVU. 310 EXHIBIT I Economic Impact of Travel Business Mountaineer Country Travel Council Region Upper Ohio Valley Travel Council Region Wages am Total Sales Salaries County (Million $) Employment ($1000) Barbour 3.2 184 894 Doddridge * * * Harrison 21.6 1,258 4,983 Lewis 2.5 • * Marion 13.0 760 3,691 Monongalia 24.7 1,439 6,990 Preston 5.2 302 1,466 Taylor 4.7 274 1.331 Upshur 8.1 472 2,291 Regional Total 83.1 4,845 23,532 Eastern Gateway Travel Council Region Wages and Total Sales Salaries County (Million $) Employment ($1000) Berkeley 11.8 685 3,328 Jefferson 16.0 931 4,523 Morgan 8.4 490 3,380 Regional Total 36.1 2,107 10,234 Wages and Total Sales Salaries County (Million $) Employment ($1000) Brooke 6.6 383 1,862 Hancock 6.2 359 1.743 Marshall 3.0 175 850 Ohio 23.3 1.357 6,591 Wetzel 4.8 280 1.359 Regional Total 43.9 2,256 12,416 Country Roads Travel Council Region County Total Sales (Million $) Employment Wages and Salaries ($1000) Braxton Calhoun 4.2 .5 247 * 1.202 # Gilmer Jackson Pleasants 1.3 8.4 .9 77 488 * 374 2,370 * Ritchie Roane 1.7 .9 99 * 480 * Tyler Wirt 1.9 * 113 * 551 * Wood Regional Total 23.0 43.5 1,340 2,533 6.511 12.302 Nine Valley Travel Council Region Potomac Highland Travel Council Region County Grant Hampshire Hardy Mineral Pendleton Pocahontas Randolph Tucker Webster Regional Total Wages and Total Sales Salaries (Million $) Employment ($1000) 4.5 264 1,283 5.3 310 1,506 1.9 110 534 2.9 171 830 3.9 230 1,117 9.7 564 2,738 8.8 512 2,488 9.3 544 2,643 2.1 124 605 48.6 2,833 13,763 Wages and Total Sales Salaries County (Million $) Employment ($1000) Boone 1.5 * * Cabell 45.3 2,642 12,831 Clay .02 * * Kanawha 120.9 7,049 34,239 Lincoln .07 * * Logan 7.2 422 2,049 Mason 6.0 351 1,705 Mingo 4.7 * # Putman 4.8 278 1,350 Wayne 3.1 179 869 Regional Total 194.9 11.361 55,184 Mountainaire Travel Council Region Wages and Total Sales Salaries County (Million $) Employment ($1000) Fayette 8.2 475 2,310 Greenbrier 106.4 * * McDowell 2.4 138 670 Mercer 33.7 1,967 9,555 Monroe .4 * * Nicholas 8.1 475 2,306 Raleigh 22.9 1,335 6,483 Summers 5.7 335 1,626 Wyoming 9.2 * * Regional Total 197.1 11,490 55,810 ►Insufficient data to estimate. Where possible estimated total Industry sales are provided. 311 EXHIBIT II Relationship Between Region VI, Mountaineer Country Travel Council, and Harrison County Mountaineer Country Travel Council Upper Ohio Valley,! Travel Council Eastern Gateway Travel Council) Country Roads Travel Council Potomac Highland Travel Council Nine Valley Travel Council Mountainairel Travel Council Notes: 1. Shaded area is Region VI 2. Harrison County demons trati site in cross hatch 312 EXHIBIT III HARRISON COUNTY RESIDENTS' ATTITUDES ON OVERALL EFFECT OF AN INCREASE IN TOURISM ON THE COMMUNITY Type of Effect Number of Responses Cumulative Responses Very Positive 74 74 Positive 482 556 No Effect 179 735 Negative 81 816 yery Negative 7 823 No Usable Response 16 - — ■ Percent Of Total Cumulative Percent 8.991 8.991 58.566 67.558 21.750 89.307 9.842 99.149 0.851 100.000 313 CO co CO co «J i— s. o I «a c a» s_ o j= I— z +» s- s- *. o o o S- M- <♦- £££ Q C C C 2T « (O UJ tU - Z r— Q .-H*-% Z > uj co a> =3 1— 1 co rD O <£DC O r— uj «a 1 — 1 C£ U- -M c z CO C_> O Q. •1- 1— 1 2: - - r— CO O UJ LO- LL. UJ a UJ r— <: a. I I CJ >N C * V « 7 K \ ^^ \ > >J^ '^S^^^ << ^^ • •^^ ^r^^ >> c 4. X > - Business Expansion - Supplier Prices - Location Attractiveness ■W Ability to Compete Employee Benefits Services from Taxes Business Relationships Customer Services Customer Traffic Sales Volume Capable Employees Parking Facilities Community Image Pricing Pattern s- 3 O •o +-> «4- co u O ■•-> O fO Employment Opportunities Theft Prevention Profit Margin Operating Costs Tax Support Available Financing 00 (fav 25 LO LO O) c CD O LO CM 00 (unfav) r- r- — •— CM CM CO 2: o ", C£ UJ UJ 2: »— 1 - =3r~ O > 5: >- CO 1- UJ 3C Q ca r-2: *— ( ~ UJ >— 002: 3: => Ul K4 CO 5> >- COCO >— 1 2= Ul to to Ul o c£ o UJ CO «S cr» c: o c: o c o •r— CO cu G o 10 X $- ret a: cu en -o si -a ■a o a s- o %- CO to to 3: CU •«- _o o 1 — cu m o J- CO -«-> -o ra c •sz «o 00000 0000 f-« o o o o 0000 t-H o o o o OOM<* co 00000 0000 00000 0000 O t-\ o o o 0000 03 ai o -r- s- «j rO r— O. S CO CO CO CO u cu en a. i- E r- 3 «3 > JD C_) to o -* c r- J. « (O 0) o> -O r— •r- £ •.=- i. a> -o o co •«- a; > jc cu +•> -o ••- OO C< ID O (Or- S. CO t-« 2: CO 3 O o 315 EXHIBIT VI NUMBER OF RENOWNED HUNTING AND FISHING AREAS IN THE MOUNTAINEER COUNTRY TRAVEL COUNCIL REGION BY COUNTY County Number Responding Barbour Doddridge Harrison Lewis Marion Monongalia Preston Taylor Upshur 2 7 1 2 2 2 2 Total 18 316 o t— I CD LU cc _J o :z> o o _l LU >• o LU LU Q_ m •-* CO " > CO Q I— uz u »— x: h- x d 2 LU "=C =D o o t-* C_) CD O 5- _i OQ O O Q < o i — i d; o h- co i— i n: u_ o cc LU CQ 4-> O jC CO Q. ID o >> 03 c o CO cu s- Q. 03 en c o c o c o to to •r— cu c o CO •r— i. S- 03 en •a •r— s- -a -a o Q o s- fl3 CO ■a c r— to «3 r— •r- to en O •r— r— J- JC OJ to (J +-> •r- S- •1— m OOOOOO OOOOOO ooowoo OOOOOO CO to TD to c CU =J +-> O C0 T~ J- 4-> CO CD c CU CU 1— E 1— n3 3 •»-> 1- c: 4-> i. O 03 3 SI CO CO to cu CD -a •I — $~ ca to c o to to cu E o to 4-> •O 03 cu s- i~ to o zn i— QJ 4J-P f— > $- to -a -r- o o cu 1— 2: o u. q: o o cu en cu c O -r- «3 S~ c a. s- U_ O JC r— CU O O CU C CU CU S- E O CO O +-> S- 3 S- JC 3 S- •!- I— JC 03 O O •-« co OLuton: CU en 03 c 03 *r™ "O E o 317 t U.S. GOVERNMENT PRINTING OFFICE: 1981-342-753:8195 PENN STATE UNIVERSITY LIBRARIES ADDD0?mmfl21