Tourism Industry Forum

Highlights from Forum on Tourism Industry
December 17, 2002 Sawmill Inn, Grand Rapids, MN

Panelists: Fred Bobich, Ruttger's Sugar Lake Lodge; Mike Ives, Super 8 Motel; Frank Allen, jenny and company

Tourism Industry Forum panelists (left to right) are Fred Bobich of Ruttger’s Sugar Lake Lodge, Frank Allen of jenny and company and Mike Ives of Super 8 Motel.

Keynote Speaker: John Edman, Director, Minnesota Office of Tourism

John Edman, Director of the Minnesota Office of Tourism shared his observations of the tourism industry from the state’s perspective with JOBS 2020 attendees.

The fourth in a seven-part JOBS 2020 forum on creating a common vision for the future of the Itasca region was held Tuesday, December 17th. Panelists were asked to discuss current issues and trends in the tourism industry and the impact those trends have on their business. Panelists were also asked what their business needed from the community in order to succeed.

JOBS 2020 committee member Sandy Layman introduces panelists at the December 17th Tourism Industry Forum.

Industry trends:

Lodging:

• The days of one or two week vacations have been shortened to shorter stays of 3 to 4 days
• Vacation plans are made with shorter lead times than in the past
• Discounts are expected
• People have higher expectations for amenities and services
• Group stays are economy dependant
• Competition is keen - particularly in the group market
• A variety of activities are needed to attract families - i.e., water parks, go-cart parks, eco-tourism, bike trails, ATV trails, bird watching, etc.

Retail:

• Increased "tire travel" and decreased air travel has been good for the area (Itasca is a "drive to" market)
• It is no longer such a good bargain for Canadians to shop in Minnesota
• The tourist profile is changing: more single parents and more two income families; the tourism market must be targeted more strategically
• Status quo is not an option: Success means change - "staying the same" amounts to going out of business
• Specialty shopping opportunities are more important; quality service makes a difference
• Shopping items must be in stock; tourists have short vacations and cannot return for purchases
• Shoppers enjoy tourist destination areas similar to Walker or Stillwater
• Local referrals are a big source of local business
• Travelers respond favorably to memorable experiences

Future Options/Recommendations:

• Expand to a county wide lodging tax!
• Leverage more cooperative marketing dollars through MN Office of Tourism, Chamber and Visitors and Convention Bureau to reach more prospects
• Reduce operating days (80% of Ruttger's sales occur March through October) or develop better winter facilities
• Grow - add value - offer good employment experiences - and make a profit!

How can the community help?

• Coordinate the efforts of the Chamber and Convention and Vistitors Bureau; to effectively market the area, they need to operate as ONE
• Encourage and support county wide lodging tax (potential for $500,000 in marketing dollars)
• Recognize tourism as a vital industry that is good for the region
• Refer customers to area shopping, motels and resorts
• Embrace and support Minnesota Office of Tourism's out-state marketing efforts
• Become familiar with available information and data relating to the impact of tourism; use the information effectively (The U of M North Central Research and Outreach Center has Itasca Community Profile Report available; email erkkila@umn.edu)
• IRRRA should get out of the tourism business (their efforts have not had a positive effect in the Itasca area)
• Improve the four visual entrances to the city
• Ensure that all front desk and sales people are knowledgeable about what is going on in the community and what is available to tourists
• Renew commitments for better service training for all staff (Managers should also show by example)
• Encourage value-added recreational offerings (Park X, ATV trails, etc.)
• Consider holding another major community event (similar to the car show)
• Define the area's brand/image; determine attractions we have that could be labeled "world class and capitalize and promote those amenities: trails, fishing, lakes, shooting sports center, Forest History Center, grouse hunting, Mt. Itasca, Park X, International Snowmobile Hall of Fame
• Ask the question: Can the local tourism ties to the forest products industry be the area's special niche - our "Lake Superior" or our "North Shore"?

Observations of tourism industry from Minnesota Office of Tourism
(MOT) (John Edman)

• Minnesota's tourism travel was more impacted by weather and the economy than by national trends
• Minnesota is a drive destination (80% car)
• Two thirds of Itasca area visitors are from Minnesota - out of state visitors primarily come from Wisconsin, Illinois and Iowa
• Travel parties to the area spend, on the average, $291 per day or $81.83 per person
• Economic impact of tourism on the Itasca area is estimated at $100 million in gross output
• Job impacts are estimated at 2,700 full and part-time workers
• State tourism generates almost $27 million in gross receipts per day
• The economic impact of tourism runs neck-to-neck with the State's agriculture industry
• The lack of snow, a wet spring, and cold fall hurt tourism industry
• The state's $4.5 billion budget deficit creates new concerns; MOT's budget has been cut and more cuts are on the horizon
• Budgets are too tight for competing organizations to "go it alone" ;
• Communities and businesses within the Itasca area need to develop a tourism strategic plan with a shared vision for the future

John Edman: "It is abundantly clear that business as usual will not work. We must continue to change if we are to survive."

A total of 175 community leaders have attended one or all of the JOBS 2020 industry forums.