ANALYSIS OF THE FRONT
STREET VILLAGE
DEVELOPMENT
BEAUFORT, NC
DECEMBER 5TH, 2014
DR. SIMON HUDSON, DR. DAVID CÁRDENAS
DR. FANG MENG & DR. KEVIN SO
Beaufort, NC Front Street Village Development Analysis
Table of Contents
Page Number
Executive summary
2-3
Key success factors for destinations
4-9
Key failure factors for destinations
10-12
A profile for successful coastal towns
and waterways
12-22
Resource audit
23
Strength and weaknesses
23-25
Potential partnerships
25-27
Consumer trends in tourism for
destination development
28-37
Acknowledgements
37
References
38-41
Appendices
42-47
Executive summary
The primary objective of this project was to identify the key factors for success and failure
attributable to becoming a leading (or losing) destination. To achieve this objective, the research
team first studied comparable destinations and waterways domestically and internationally
through personal visits and content analysis of existing written documents and literature. In
addition, past and current waterway projects were analyzed to glean essential indicators of
success and failure in similar ventures. The team also identified existing resources and strengths
in the Beaufort region and explored potential tourism products and packages that would
complement existing businesses and help attract tourists to Front Street Village (FSV). Finally,
the research team conducted an extensive review of the current and future consumer trends in
tourism in the U.S. and in major potential market source regions for FSV.
Based on the results of this comprehensive analysis of the current industry trends, Beaufort’s
tourism products, and its competitive position in the market, the team provides the following
observations and recommendations for FSV.
Accessibility to a destination is critical. Beaufort’s location is remote when compared to other
tourist destinations and currently has limited access from its main travel markets and major
highways. This has both its benefits and constraints. New infrastructure is being built that will
significantly improve access and reduce drive time. The improved access, if marketed
appropriately, could lead to increased traffic flows in Beaufort and Carteret County. The remote
water front location of FSV can also be an asset. FSV will have the ability to provide their guests
with a relaxing and gratifying experience by providing exquisite food, spa, and accommodations,
only seconds from the Inter-Coast Waterway and some of North Carolina’s majestic nature and
culture. FSV could also easily leverage itself as a tourist attraction on the water.
It is important that FSV matches the persona and feel of Beaufort, yet differentiate itself from the
other properties in and around the region. Beaufort is well known for its history and maritime
culture and therefore should incorporate that into the FSV décor and ambiance, as well as train
the staff about the importance of the region’s history and culture so that they are aware of the
unique features of Beaufort as a tourist destination. Carteret County is mostly known for its
beaches and provides mainly midscale to economy lodging, food and beverage, and event space.
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In consideration of this, FSV has the opportunity to differentiate and position itself as an
exclusive four to five star resort that provides real quality (both product and services) to the
region. This would match the retail shop, event space, boathouse, and cottages currently at FSV,
ensuring a greater level of consistency among all the product and service offerings provided. It is
also strongly recommended that FSV strive for LEED Certification which not only helps ensure
environmental protection and sustainability to the property and enhances the corporate image of
FSV, but also helps to elevate the class and reputation of the facility.
The residents in Beaufort have a strong sense of community and are highly engaged and
involved in the development of the town. It is important therefore that FVS works with the
community in any tourism planning and development, and have the residents ‘feel’ like FSV is
part of Beaufort and part of downtown (Front Street). FSV will need resident support and
acceptance to be successful in the long term. Additionally, Beaufort and FSV will need to work
together to enhance the tourism products and services in the region. Coordinated efforts for
example, will be needed to develop further water-based activities around the hotel and bistro, to
develop walking trails connecting FSV to downtown, and to leverage the rich cultural heritage
such as the historic Blackbeard connection.
Finally, a comprehensive branding and marketing strategy should be developed and
implemented. This should be based on sound stakeholder research. As mentioned in the report,
marketing will be a critical component for FSV to gain awareness as a tourist destination. A
strong destination brand can increase the residents’ sense of belonging and pride, motivate and
direct employees, and influence the purchase behavior of visitors. Moreover, a strong brand adds
value to the destination.
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What makes a destination successful?
In order to identify best practices that serve as a guide for the development of Front Street
Village, the research team conducted an extensive analysis of successful coastal towns and
waterway developments both within the United States and other countries. The first section lists
the success factors for destinations based on those profiles, whilst the second section outlines
certain factors that may lead to failure. Case studies are profiled in the third part of this section.
Key success factors for destinations
Accessibility: Accessibility defines a destination’s ability to provide appropriate visitor access
into a destination and dispersal throughout the destination. Transport and barrier-free
infrastructure are among the most important factors which control the accessibility and
development of tourist destinations. Transportation links across the destination influence the
spatial development of the local economy and communities. For any destination, convenient
airport access is a minimum for pursuing a growth strategy. For coastal towns, access to the
beach and water is vital to all the coastal communities. Access to well-designed seashore
pathways is also essential, as well as seaside attractions along the pathways. For example,
Seaside, Florida as a destination provides visitors easy access to airports such as Northwest
Florida Beaches International Airport (ECP), which provides nonstop service to several major
cities in the U.S. including Atlanta, Nashville, Houston, and Baltimore.
Branding/Marketing: Marketing is a critical component in gaining prospect attention,
increasing the awareness of a place as a tourist destination, stimulating travel demand, and
winning visitors. Consistent communication with potential visitors helps them associate a
destination brand and its products and services, and facilitate the recognition of the brand from
the crowd. A strong destination brand can also increase the residents’ sense of belonging and
pride, motivate and direct employees, and influence the purchase behavior of visitors. Moreover,
a strong brand adds value to the destination. For example, in recognizing the critical need to set it
apart from other cities throughout Florida, the United States, and the world, St. Augustine took
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initiatives to understand, and establish the brand identity for the city. In this case, the process
started with research with the city surveying 1,000 visitors, community members and merchants
to obtain feedback about general perceptions of the city, which informed the design of the city’s
brand identity. The final identity was chosen from three different concepts that emerged from the
research. Each of the three concepts had individual strengths. The concepts were further tested
and updated based on feedback from more than 140 people, including community members,
visitors and City of St. Augustine employees. Based on the feedback received, the current brand
identity was selected. The brand identity concept brings together the unique combination of
history and water. The logo is a modern update to the classic city crest. The terra cotta and red
reflect the Spanish heritage, and the aquamarine carries ocean cues. The typography is both
historical and luxurious. The image showcases the Castillo de San Marcos, which is the symbol
most associated with St. Augustine. Further, steps included an updated website with an online
store, creating and hanging light pole banners throughout the city, and producing merchandise to
sell on their online store that captures the city brand.
Service Quality: Understanding the importance of good service is essential for the sustainable
development of destinations. Good service can help destinations in creating new visitors,
retaining loyal tourists/customers, and encouraging valuable positive word of mouth advertising.
What is more, excellent service can differentiate a coastal town from its competitors, and it plays
a unique role in prevention and solution of complaints. But despite its importance, quality
customer service is the exception rather than the norm in many destinations. The authors of this
report believe there are three reasons for this. First, many destinations wrongly believe they are
providing service excellence; they get wrong-headed about their customer’s satisfaction because
they rely on indirect metrics to measure service, rather than designing the right offers and
experiences for the right visitors. Second, destinations simply do not understand the significance
of customer service, despite the exhaustive literature that has made the connection between
service excellence, satisfaction, and loyalty – and therefore profits. Finally, even if destinations
recognize the importance of customer service, some do not know how to deliver consistent, high
quality customer service on a consistent basis.
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Human Resources: Related to the point above, the competitiveness of a coastal town in
attracting tourists is based on its ability to deliver unique, superior, unforgettable, and hassle-free
experiences. Intangible services provided by people in coastal towns are inevitable components
of good tourism experiences. In this sense, personnel can be recognized as the most important
source of the competitive advantage or weakness of a destination. As the main interface with
customers, staff in hotels and restaurants, employees in tourism organizations, and even the local
residents are presenting the image of coastal towns. Their skills and knowledge define the level
of customer service in coastal towns. Training therefore is critical. Steamboat Springs, a resort
town in Colorado, recently decided to give the whole town customer-service training! This was
in response to visitor survey results in 2013 whereby their Net Promoter Score — a rating
derived by asking customers, “How likely is it that you would recommend us to a friend or
colleague?” — came in at 70 of a possible 100, meaning that, while visitors liked the town, many
were not excited enough to spread the word. In this case, the town chose to bring in a consultant
to improve the customer’s experience — and encourage loyalty — by teaching workers how to
form a warm connection with clients and use the knowledge they glean from this connection.
Historical Sites and Cultural Heritage: At coastal towns, beaches and seaside activities are key
attractions. However, the modern tourists are seeking educational experiences. Based on our
analysis of successful coastal destinations, it is easy to see that they all have rich historical sites
and a strong cultural heritage. In St. Augustine FL, for example, visitors can enjoy the Spanish
architecture, walk the cobblestone streets of historic downtown, and absorb the Colonial history.
Similarly, Beaufort SC is the second oldest city in the state and the historic antebellum
architecture is felt and maintained throughout the city.
Targeting Niche Markets: Many successful destinations differentiate themselves from others by
targeting niche markets. Provincetown, MA, for example, has grown into a welcoming place
largely built around and by the Gay and Lesbian community. The GLBT tourism is unique in
Provincetown. Military tourism is a niche market for the town of Beaufort SC. To attract this
market, Parris Island located in Beaufort SC, offers the public museum visits and guided tours of
the base. Visitors are also welcomed to participate in scheduled graduations and graduation
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related activities. Developing a product to target a certain niche market can help to shape the
unique attributes of a destination.
Vivid Local Life: Previous research has shown that without happy residents, a destination cannot
be competitive and therefore sustainable. Residents in St. Augustine, for example, can
experience a colorful nightlife, with numerous restaurants, live entertainment at local bars,
award-winning performances, and local concerts. These are the attractions that also bring tourists
flocking to the town. Art galleries, museums, and theatres are other facilities that lead towards an
enhanced quality of life for both residents and tourists.
Environmental Protection: Nature endows many coastal towns with a pleasant climate and a
beautiful natural environment. On the other hand, the ecosystem in these areas can be
complicated and sensitive. Eco-friendly development is essential for these coastal towns. A welldesigned blueprint for tourism development, that includes protection for the environment,
guarantees sustainability of the destination. Sanibel Island, FL and Provincetown, MA
understand well the important role of environment protection. Buildings on Sanibel Island are
“no taller than the tallest palm tree." Residents and visitors alike maintain a healthy respect for
the environment. For this reason, half of Sanibel’s acreage has been preserved against
development. Similarly, Provincetown, MA has dedicated more than half of their national
seashore to the federal protection of animal, bird life and walking and biking trails. Education
centers provide free instruction on the history and practices of the island’s green actions resulting
in eco-tourism becoming one of the major draws for visiting Provincetown.
Water Accessibility and Water Activities: Good accessibility to water is critical for coastal
towns, where water and sea are main attractions. One of the major reasons for people choosing
coastal towns is their desire to get close to the water. Riding bikes along the beach in Beaufort
SC and well-maintained trails in St. Augustine are frequently mentioned in positive tourists’
reviews. Most of these towns provide numerous water activities such as swimming, fishing,
sailing, shrimping, crabbing, snorkeling, kayaking, boating, and even whale watching.
Interestingly, a recent WSJ article said that property buyers are choosing marina-front homes
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over beach homes; they typically cost less and are often cheaper to insure, and often times dock
space is included in the sale eliminating the need for a boat-slip rental.
Trails Alongside Waterways or Coastal Areas: Activities on the water are paralleled in
interest to shore-side activities – people are attracted to cycling and walking paths alongside
canals/rivers, and eating and drinking in waterside cafes and bars is very popular. On the Kennet
& Avon Canal, over 60% of visitor spending is by non-boat users, highlighting the importance of
on-land activities. Packaged, themed or organized trails seem quite common, and have a
significant impact on the economies surrounding waterways. Visitor spending on the Erie
Canalway Trail, for example, generates approximately $253 million in sales, 3,440 jobs, $78
million in labor income and $28.5 million in taxes in the New York Upstate economy each year.
The trail, which constitutes much of the towpath of the Erie Canal, is 277 miles long and is open
as an off-road multi-use trail. While overnight visitors to the trail constitute only 18.25% of the
total volume of visits, yet they generate 84% of overall spending. Self-guided tours include three
‘inn-to-inn touring trails’ for cyclists. Therefore, the provision of trails alongside the coastal
areas is considered to be important.
In Belgium too, the waterways are almost inextricably linked to cycling. Almost all of the canals
have towpaths and these waterside routes offer some of the best cycling in the world. Of the
country’s 2,000 km network of canals, approximately 1,600 km of towpath are open to cyclists.
These towpaths are largely traffic-free and most pass through open country, and many are further
connected by trails running along former railways. Both the Flemish and Walloon regional
governments have actively improved towpaths and abandoned railway tracks for use by cyclists.
In some cases where a towpath has been turned into a modern road, separate paths are built for
cyclists.
Events and Festivals: Festivals and events are becoming an increasingly important component
of a destination’s attractiveness, and this is just as true for waterways. In 2014 for example, the
Erie Canalway and the NYS Canal Corporation teamed up to sponsor 28 festivals and events.
These included: Canal Clean Sweep Weekend in April when volunteers were invited to help with
canal-wide cleanup and beautification projects; Our Ability a cross state bike ride from Buffalo
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to Albany in July along the Erie Canalway Trail to raise awareness for people with disabilities;
Cycling the Erie Canal in July where more than 500 riders of all ages and from all over the
country took an 8-day, 400-mile bike tour across New York State, organized by Parks and Trails
New York; and Canal Splash! in August, a weekend of guided walks, bikes and cruises, museum
and gallery exhibits, canoe and kayak paddles, canal side festivals, and performances offered
throughout the Corridor to celebrate the history, culture, and recreational appeal of the NYS
Canal System. Similarly, special events and activities are highly valued in coastal towns. For
example, St. Augustine Florida has events every day, reflecting its rich heritage and culture as
well as bringing out the exciting and unique aspects of the city. St. Augustine has the capacity to
serve events of many types, including large and small, historical and modern, as well as
educational and entertaining. Likewise, Beaufort, SC, highly encourages the local community to
apply for and hold events.
On the Kennet & Avon Canal, a range of events and festivals are held throughout the year at
different locations along the canal, including for example, Newbury Waterways Festival, the
Devizes to Westminster International Canoe Race, BBC Radio Wiltshire Week, and a Ramblers
Relay Walk. Boating pirate adventures around Newbury are also very popular. Previous studies
have alluded to the positive social impacts of such events and festivals for local communities.
For Canal Splash for example, all canal corridor communities, businesses, clubs, individuals, and
non-profit organizations are invited to be part of the event and create their own events.
For boaters cruising the canals in England, there is also an App called e-canalmapp, which is a
collection of guides and maps of the waterways developed for ramblers and cyclists as well as
boaters. The maps display thousands of continually updated points of interest (such as pubs,
shops, moorings etc.), as well as all the waterway information such as locks, bridges and turning
points. An essential feature of the App is that it is off-line, so there is no interruption due to the
poor Internet connection on the canals.
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Key failure factors for destinations
Environmental Change: New Orleans is facing a serious problem- coastal erosion. Several
massive chunks of the land have been taken away by coastal erosion and the area itself would be
twice the size that it is today if it had not eroded away due to rising sea levels. As the coastal
erosion continues, it was estimated that New Orleans will be off shore in approximately 90 years.
In the state of North Carolina, coastal erosion has resulted in the move of Cape Hatteras
Lighthouse, which was moved a quarter of a mile back from the shore. A review of many other
examples shows that environmental change is a less expected but powerful factor that determines
the success or failure of a destination.
Community Engagement: Community engagement in tourism development can add
authenticity and differentiation for successful and sustainable tourism development. As indicated
by many tourism authorities and economic development leaders, obtaining buy-in from local
residents is critical in the process. It is therefore essential to involve local communities in
tourism policy planning and decision making. Otherwise, it may generate tensions between
community wellbeing and tourism development. Residents in Kangaroo Island in Australia, for
example, were not involved in the local policy making process. So rather that working
collaboratively on a tourism development plan, the residents having been excluded, chose to
oppose tourism policy in the area, in hopes of gaining control of the development and protecting
the local environment. Also, in Haiti, the local residents have reacted negatively to being
excluded from the decision making process of their government, and are opposing tourism
development projects on the island. Failure to engage local residents and communities in the
decision making process undermines the success of the destination.
Urbanization: With golf courses, strip malls, water parks, and concrete high-rises heavily
paving over the shore, South Carolina's Grand Strand, including Myrtle Beach, is typical of overurbanization as a result of tourism development, resulting in negative impacts such as increased
violence and crime rates as well as an overdependence on tourism. Similarly, the island of
Mykonos in Greece has experienced rapid tourist growth, as well as expansion of tourist
facilities in this island. The uncontrolled development of tourism also leads to great volume of
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built-up areas and degraded environmental quality. Socio-economic structure and local culture
has also been altered in these areas. In addition, such development can present an increased risk
to marine ecosystems, ultimately affecting the natural resources that are vital for tourism
development.
Pollution: Pollution has been a major concern for many destinations, particularly for the coastal
areas. The effect is exemplified as a result of mass tourism or development. Doheny State Beach,
CA, for example, has suffered from poor water quality in the past. The bacterial level of Doheny
at one time exceeded 90%. Poor water quality has kept tourists away from this region.
Circumstances are similar in Wantagh, NY. The bacteria-infested water and high levels of
pollutants ranks the beaches of Wantagh among the worst in the U.S. While pollution may not be
as obvious in some cases, the importance of minimizing pollution should be emphasized, if
sustainable long-term development is a key objective.
Weak Branding and Poor Promotion: In an increasingly competitive global marketplace, the
need for towns and cities to create a unique identity, to differentiate themselves from
competitors, has become critical. Many places promote spectacular scenery, good quality of life,
friendly people, and a sound business infrastructure. However, these factors are no longer
differentiators, so destinations need a strong brand identity to stand out in order to attract people
to live, work, and play. But brand development is often driven by short-term top-down
approaches in which the primary tool of brand expression becomes the final marketing
campaign. Often these campaigns are poorly funded and lack creativity. Consistency in
communicating a destination’s identity to a variety of internal and external stakeholders is
therefore critical for ensuring the destination’s success in the long-term. Not all the coastal towns
and waterways analyzed for this project were sophisticated in promoting their destinations. The
Erie Canalway Preservation and Management Plan for example, acknowledge that the corridor
suffers from a lack of awareness of the canal system, its significance, and its value to potential
visitors. The same can be said for many of the similar sites visited. Signage to waterways and
associated attractions were often poor, with many still relying on traditional print media to get
their message out to potential tourists. Websites also tend to be outdated and difficult to navigate.
There are some exceptions. The Kennet & Avon Canal for example, has an impressive
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interactive holiday guide and map whereby visitors to the site can click on a variety of activities
or interests, such as hiring boats, or visiting hotels, pubs and castles
(http://www.canaljunction.com/canal/kennet_avon.htm). For those interested in visiting pubs
along the canal, brewery tours are also promoted such as the Wadworth Brewery tour.
Profiles of successful coastal towns in the U.S.
1. St. Augustine, Florida
Visitors who come to St. Augustine for the beaches stay for the history—and vice versa. With 42
miles of stunning sugar-sand shores, this city of 13,400 on Florida's northeast coast is also
America's oldest continuously occupied European settlement, founded nearly 450 years ago by
the Spanish. Colonial influences still permeate the town's graceful architecture and narrow
redbrick lanes. That makes for historic sites, including centuries-old churches, forts, and even
Ponce de Leon's storied Fountain of Youth. Visitors can take a sip from the Spring of Eternal
Hope at the archaeological park.
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St. Augustine's dining scene is as vibrant as its history. The Spanish Bakery on St. George Street
has served up its famous empanadas and smoked sausage, not to mention the homemade lemon,
almond, and cinnamon cookies, and large loaves of fresh bread for nearly 40 years. Locals and
visitors also revel in those endless sands, beachcombing at Crescent Beach, surfing at St.
Augustine Beach and hitting its many surf shops, exploring beautiful Anastasia State Park by
canoe, or playing along the super wide, quiet stretches of the shore that locals try to keep
secret—Vilano Beach.
2. Provincetown, Massachusetts
Positioned at the very end of Cape Cod, Provincetown is a genuine outpost of welcome and has
been for centuries. The first landfall of England's Puritans, it grew as a fishing settlement,
attracted artists with its renowned light, and now proudly proclaims itself a thriving destination
for gay America. What may be most remarkable about Provincetown, though, is what surrounds
it—vast sand dunes and more than 30 miles of beaches that offer instant escape into seaside
wilderness. Whether you are sunbathing on peaceful Herring Cove or walking into the breezes
that cross Race Point Beach, the protection of the Cape Cod National Seashore designation keeps
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your views—and moments—pristine. Downtown, the colorful historic buildings and friendly
locals make every stroll there a rich event. Walking the length of Commercial Street, the town's
main drag—from the gallery-lined East End to the rowdier, party-loving West End—lays out a
lot of the enjoyment that Provincetown has to offer: everything from boutiques and bars to
seafood shacks, fudge shops, bookstores, and coffee houses.
3. Sanibel Island, Florida
Located along the Gulf of Mexico, just a short drive from Fort Myers, Sanibel Island is justly
famed for its sunsets, lighthouse, and luxurious resorts. By far, the most popular activity that
visitors do on this island is shelling – one can barely walk a step on the beach without indulging
in the so-called "Sanibel Stoop" to search for shells. But Sanibel has so much more to offer-–
fine accommodations, luscious dining (seafood, of course!), fishing, boating, and just plain
relaxation, a chance to get away from the hurly burly, a chance to draw closer to nature.
On Sanibel, there are multi-use paths – 25 miles total – that function as sidewalks, bike paths and
recreational trails. The intelligent and sensitive way the islands balance resorts with nature has
made them a state-wide model for eco-tourism. Education centers at Sanibel’s two main ecoattractions introduce the uninitiated to the island’s marine, freshwater and hammock habitats,
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where river otters, loggerhead sea turtles, dolphins, manatees, bald eagles and hundreds of native
and transitory birds find refuge.
The islands’ marinas offer plenty of opportunity to get out on the water. Offerings include
shelling on secluded islands, hitting a beach away from it all, fishing, sailing, snorkeling,
learning about marine life or camping on a bridgeless island. Many resorts and outfitters stock
kayaks, sailboats, paddleboats and an assortment of water toys for vacationers’ enjoyment.
4. Seaside, Florida
Seaside FL is an unincorporated master-planned community, located directly on Northwest
Florida’s acclaimed sugar-white sand beaches in South Walton County on Scenic Highway 30A,
between Destin and Panama City Beach. Founded in 1981 by Robert and Daryl Davis. Seaside is
the much-heralded birthplace of The New Urbanism movement, which is based on rediscovered
traditional town planning principles. As a tourist destination, Seaside is a place where the orange
and pink hues of the sunset, the turquoise blends of the sea and the glistening whiteness of sand
blend in perfect harmony to create a stunning backdrop for a unique and unforgettable
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experience; served with Southern hospitality, luxurious amenities and all the makings of a simply
perfect stay. With clusters of tin-roofed, pastel-painted and picket-fenced cottages strung along
80 acres of sheer architectural perfection, this town sets the tone leisurely for a family beach
vacation, romantic escape, or storybook wedding, as well as for those planning a corporate
gathering, reunion or photo shoot.
Situated on 80 acres, this community is a pedestrian-scaled beach town with 423 residences, 42
specialty retail shops and 12 restaurants and eateries. Seaside is designed so that life’s daily
needs are within a short stroll or a bicycle ride away and features a thriving downtown including
civic, cultural and educational institutions, an artist colony, a public charter school, an inter-faith
chapel, a repertory theater and The Seaside Institute. The town rose to global fame as being the
main filming location of the movie The Truman Show (1998), featuring actor Jim Carrey.
5. St. Marys, Georgia
Historic St. Marys has a storybook setting on the St. Marys River –white picket fences, charming
Victorian inns, and majestic magnolia trees and live oaks welcome you to an atmosphere
perfumed by fragrant salt air. Here you'll discover legends of forgotten battles and daring pirates
as you kayak by moonlight with sea turtles for company.
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6. Beaufort, South Carolina
Lowcountry friendliness and urban refinement strike just the right balance in this beautiful South
Carolina town known for its historic antebellum architecture, exquisite local cuisine, and rich
African-American heritage. Beaufort sits on Port Royal Island, in a verdant curve of the
Intracoastal Waterway in the heart of the Sea Islands, as it has for a little more than 300 years,
making it the second-oldest city in South Carolina. It is glorious strolling and much of the
architecture remains intact, thanks in large part to the Historic Beaufort Foundation, which puts
on a stunning Fall Festival of Houses and Gardens every October. Beyond being an elegant and
welcoming urban center of 12,534 locals, Beaufort is also a springboard for exploring natural
environs, including Hunting Island, a 5,000-acre state park with more than three miles of pristine
beach known as among the most sublime in the state.
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7. Erie Canalway National Heritage Corridor
The Erie Canal covers 524 miles, running from Albany, New York, to Buffalo, New York, and
though the canal was once a significant option for transporting cargo, today it is used primarily
for recreation. In 2000, the U.S. Congress designated the canal as the Erie Canalway National
Heritage Corridor, and according to the New York State Canal Corporation, the canal system
now generates $380 million a year in direct tourism spending.
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8. Saratoga Lake, New York State
Saratoga Lake is a freshwater lake in the eastern part of Saratoga County NY. The lake is
approximately 4.5 miles (7.2 km) long, about 1.5 miles (2.4 km) wide at its widest point, and
about 95 feet (29 m) deep. The Lake is surrounded by the City of Saratoga Springs on the north
west, the Town of Malta on the south west, the Town of Stillwater on the south east, and the
Town of Saratoga on the north east. New York State Route 9P is a highway that runs along the
southern end and eastern side of the lake, and then crosses its outlet in the north.
Profiles of successful waterways in other countries
The analysis also includes the examination of several successful waterways in Europe. The
research team made observations, interviewed key stakeholders, and obtained the most up-to-
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date information regarding tourism infrastructure and facilities on and around waterways.
European Locations included the following:
1. Kennet & Avon Canal, England
The Kennet & Avon Canal in England is England's most southerly cross-country canal and links
London and the Bristol Channel. The 87 mile-long waterway attracts huge numbers of visitors
each year, although it hasn’t always been such a popular place to visit. In the 1960s, it fell into
disrepair and wasn’t fully open to boats. It now owes its existence to the dedication of waterway
enthusiasts and local people who formed the Kennet & Avon Canal Trust and helped to restore
the canal to its former glory. In 1990, the Queen reopened the canal and it is now enjoying a
second renaissance.
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2. The Grand Union Canal, England
The Grand Union Canal meanders across the Midlands of England, and sweeps through the
countryside of the South East. From Union Wharf Marina in Market Harborough, boaters can
cruise for six miles on the Grand Union Canal, where they can then travel north towards
Leicester or south through the Foxton Locks. Foxton has two staircases of locks, each with five
locks to navigate.
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3. Canals around Nieuwpoort and Bruges in Belgium
The two regions of Belgium, the flatland canals of Flanders along the English Channel and the
hills & rivers of Wallonie in the south, are connected in a dense 1,600-km network of recently
improved waterways. The team visited Nieuwpoort, just inland from the coast and ideally placed
to take advantage of Western Belgium; and Bruges, dubbed the Venice of the North.
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Analysis of existing resources and potential tourism products
The research team conducted a resource audit aimed at identifying the existing resources in and
around Beaufort, NC. In addition to reviewing the region’s assets, the research team examined
the local community’s strengths and weakness and identified potential partnerships that would
enhance the Front Street Village development.
Resource audit (See Appendix A for a comprehensive list)
Beaufort’s tourism inventory is anchored by its nature, with over 10 major natural attractions in
and around the town. Many of these natural attractions are nationally and internationally known
such as Cape Lookout National Seashore, and Rachel Carson Reserve. For a small town the
community also has a large number (12) of cultural and historical attractions. The community
hosts over 16 festival and events throughout the year. To service the visitors, many different
activities (19) have been established. Most of the activities are water-based, such as the ferry
services and boat trips. Beaufort has 21 food and beverage establishment and 11 lodging
facilities. The eateries are almost all local establishments with a few fast food restaurants.
Accommodations are either Bed or Breakfasts or small scale economy-type lodging facilities.
Strengths and weaknesses (See Appendix B for a comprehensive list)
Known for its rich maritime history and abundant natural beauty, Beaufort is located on the
Crystal Coast of North Carolina. In 2012, the town was voted “America’s Coolest Small Town”
by Budget Travel Magazine. Much of the charm of Beaufort and the region revolves around the
well-established recreational and boating culture. The North Carolina Maritime Museum is
located in Beaufort and both Duke University and NOAA have established laboratory centers in
the region. Location is both a primary asset and a current constraint with respect to tourism
development in Beaufort, NC. Natural attractions such as Cape Lookout National Seashore,
Rachel Carson Reserve and Cedar Island National Refuge are only minutes from Beaufort and
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Front Streets Village’s backdoor. Currently a ferry service is being offered from Beaufort. This
should be continued and should be leveraged. Beaufort is located in a serene and secluded
portion of North Carolina’s Inner Coastal Waterway. This area’s seclusion has allowed the
region to maintain its charm and small town feel.
The seclusion however has also contributed to limited tourism growth in the region. The current
drive time to Beaufort from its main tourism market (RDU) is almost three hours. The closest
town/city with a population of over 100,000 is about one hour away. A new highway and access
bridge are currently being built which will reduce the drive time from RDU and highway 95.
This new infrastructure has the potential to significantly increase traffic to the region. This
increased traffic will not be instantaneous, and it is critical that a targeted marketing and
educational campaign be developed to reprogram potential tourists and make them aware of the
reduce drive time. An image and branding campaign is also recommended. Beaufort has been
able to differentiate itself well from Atlantic Beach and Morehead City. However there is no
strong brand recognition outside of the region and Beaufort, NC is often confused with Beaufort,
SC and Beaufort County, NC.
In addition, the community/region needs to be prepared (infrastructure, amenities, attractions &
services) to accommodate the increased demand. This includes improving the roads and
sidewalks in and around downtown Beaufort. Front Street Village should try to connect as much
as possible to downtown and encourage the development of paths and trails that lead to
downtown. This connection should be physical as well as mental. The community and residents
of Beaufort should feel like FSV is Beaufort’s Front Street.
As well as working on developing the infrastructure, the community needs to make sure that the
region has the human resources (trained and educated) to serve and manage the influx of tourists.
Currently, the region has a lower mean income and an older population relative to the rest of
North Carolina. Also, there are limited high quality job opportunities in the region for younger
adults. It is important that Front Street Village, Beaufort, and the region work on ensuring that
the human resources match the needs of the tourist. A coordinated effort between Beaufort and
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the surrounding region should be initiated to enhance the human resource and economic
conditions in Carteret County.
In conclusion, Beaufort is positioned to grow as a tourist destination. People who visit the town
rate it highly for its small town feel and charm. Visitors come for Beaufort for the water and
history and if planned and managed properly, the community will sustain its allure and grow as a
tourist destination.
Potential partnerships
Partnerships are dependent on the type of resort and amenities built, as well as the cliental that it
is targeting. It is critical that all aspect of the establishment services and products
(accommodations, spa and F&B) match and complement the desires and expectations of the
visitors.
Maritime clubs: It is highly recommended that partnerships and networks be established
with both local and international sailing, yacht, kayak, high-end fishing and boating clubs
and organizations. Front Street Village should take advantage of its coastal location and rich
maritime history. These clubs and organizations could potentially host events, conferences,
and or races in Beaufort. In addition, these clubs and organizations could be a used as a
medium to advertise and market FVS’s products. Potential clubs and organizations that could
be partnered with include but are not limited to NCsail, Neuse Sailing Association, United
State Sailing Association, American Yacht Club, Quarterdeck Club, and Carolina Kayak
Club.
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Educational Institutions: Relationships with the local high school, community colleges, and
regional hospitality and tourism universities should be established to ensure the ability to hire
and retain high quality employees. Specialized service and skills will be needed depending
on the type of amenities and services provided. This is critical regardless of the final decision
on the rating of accommodations, restaurant, and spa. However the higher the scale, the more
the clients will expect. Training and efficiency of the staff will be critical to the success of
FSV.
Downtown Front Street Food and Beverage and Retail: FSV needs to connect with the
local community and especially establish a connection with downtown. Beaufort has a strong
sense of community and compared to other towns/cities, their residents are highly engaged
and are proud of their town. This is considered a strength of the community, but it should be
noted that if the residents feel as if they are not a part of the progress and should they feel
excluded, this could have a negative impact on the success of FSV. Residents should be
made to feel welcome and a genuine part of FSV. This will help reduce any resentment and
will help market FSV’s products and services. The community’s support and connectivity
will enhance the regions sustainability. Local ties should be nurtured and developed by FSV
planners. Partnerships with the local retail stores (e.g., Taylor’s Creek Grocery), museums
(North Carolina Maritime Museum), and historical sites (Beaufort Historic Sites) should be
established. Reciprocally, Front Street Village should reach out to the community by
sponsoring and supporting local festivals and events in Beaufort. Additionally, FSV should
commit to hiring as many local employees as possible. Local employees will help to bring
the charm and history of Beaufort to FSV.
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Local Farms and Purveyors: In addition to establishing ties with the local retail and
hospitality community, FSV should partner with local farms and purveyors for foods and
products. This will enhance the local economy while providing a local feel to the village.
Beaufort hosts a farmers’ market every Saturday (Olde Beaufort Farm’s Market) and
products from that event should be utilized in the FSV restaurant. There are also several
farms in and around Carteret County where products such as egg (Yellow Bear Farm), fruits
and vegetables (Sherry Lane Farms) and beef (Marshallberg Farm) can be utilized and
incorporated into the restaurant.
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Consumer trends in tourism for destination development
The research team conducted an extensive review of the current and future consumer trends in
tourism in the U.S. and in major potential market source regions for Front Street Village. The
team identified 10 consumer trends that will help Front Street Village understand the destination
experiences that consumers are seeking, so as to facilitate the design and development of
competitive and sustainable product/service offerings that will appeal to target markets.
1. Learning and Enrichment: One of the major trends in tourism today is the desire of the tourist
to have a learning experience as a part of their vacation. A recent survey found that half of North
American travellers want to visit art, architectural, or historic sites on vacations, while one-third
would like to learn a new skill or activity. Today’s travellers are seeking experiences that provide
them with a greater insight, increased understanding, and a personal connection to the people and
places they visit. Rather than choosing their vacation by the destination, many are first
determining the experiences they want, and then choosing the destination where these
experiences are located. Learning and enrichment travel refers to vacations that provide
opportunities for authentic, hands-on, or interactive learning experiences, featuring themes such
as adventure, agriculture, anthropology, archaeology, arts, culture, cuisine, education, forestry,
gardening, language, maritime culture, mining, nature, science, spirituality, sports, wine, and
wildlife – to name only a few! An excellent opportunity for Beaufort and Front Street Village to
capitalize on this trend would be to leverage the connection to Blackbeard, and position the
destination as ‘the home of Blackbeard’ - building up to the 300th anniversary of his death in
2018. Beaufort could then have an annual event to celebrate the connection.
2. Ethical Consumption: In the last few decades, responsible tourism has emerged as a
significant trend in the western world, as wider consumer market trends toward lifestyle
marketing and ethical consumption have spread to tourism. Tourism organizations are beginning
to realize that promoting their ethical stance can be good business as it potentially enhances a
company’s profits, management effectiveness, public image and employee relations.
Some experts have labelled these new consumer behavioural patterns as ‘guilt-free
consumption’, the theory being that a growing number of consumers are recognizing the damage
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done by their consumption to the planet, society, or themselves. But a mixture of indulgence,
addiction, and conditioning mean that most cannot substantially change their consumption. The
result is a never-ending guilt spiral which creates opportunities for brands tackling this guilt
spiral with consumers’ endless status seeking. High status, chic or fashionable products that are
visibly sustainable, ethical or healthy will meet these new demands. An example is the Tesla
luxury electric vehicle, positioned by marketers as high status but planet-friendly. The Model S
was the best-selling car in Norway in 2013.
Leisure travellers are also increasingly motivated to select a destination for the quality of its
environmental health and the diversity and integrity of its natural and cultural resources. Studies
indicate that environmental considerations are now a significant aspect of travellers’ destination
choosing process. According to a travel study conducted in 2012, the ‘green’ travel trend is
gaining momentum, as 71% of travellers surveyed said they plan to make more eco-friendly
choices in the next 12 months compared to 65% that did so the year previously. A study by the
International Hotels Environment Initiative and Accor reported that 90% of hotel guests would
prefer to stay in a hotel that cares about the environment. Similarly, J. D. Power and Associates’
North America Hotel Guest Satisfaction Study indicates that 75% of hotel guests would be
willing to take part in their hotels’ environmentally friendly initiatives. A critical element of
becoming an environmentally friendly hotel is adopting an environmental management system
that meets international standards and extends throughout the hotel and between the hotel, its
guests, local community, and suppliers. LEED, or Leadership in Energy & Environmental
Design, is a green building certification program that recognizes best-in-class building strategies
and practices, and serves as an important and widely used indicator of hotel/resort ecofriendliness.
3. Nostalgia: Nostalgia has become a big driver in destination choice. Not only have tourists
become more interested in history, but the scale, richness, and diversity of the history they are
interested in have also expanded enormously in the past 30 years. Nostalgia tourism provides an
alternative to the present by recourse to an imagined past, a version of reality that people carry
around in their heads. A consequence of this emergence in nostalgia tourism is the increasing
desire to re-visit a specific country or city with a sentimental association instead of discovering
somewhere new. A 2007 survey in the UK found that 90% of British travellers use their holidays
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to re-visit a specific country or city with a sentimental association to their lives and the top
reason is a desire to re-live youth. More than a quarter (27.7%) said they go back to a destination
where they had a memorable childhood holiday while more than a fifth (21.5%) go to where they
lived or studied in their younger years.
A good example of this nostalgia tourism is the increasing popularity of resorts worldwide
celebrating the “Retro” period of the 60s, 70s and 80s. Having discovered a cache of old film
reels and a working projector, Lake Louise in Canada recently launched Throwback Thursdays
with online footage from the good old days. Film dating back to the 1960s shows fondues,
vintage haircuts, 70s disco and local characters. Retro-related competitions accompany the
Thursday segments, all leading up to Lake Louise’s new retro-themed end-of-season event. The
retro revival has infiltrated ski fashion with companies such as The North Face and Peak
Performance re-inventing the one-piece. Retro food has also made a bit of a comeback with
fancy fondue sets available in stores as well as raclette makers – a hot plate with paddles to cook
cheese underneath. Even resorts like Aspen, usually known for its gourmet food, are offering this
kind of hearty Alpine cuisine.
4. Health and Wellness: Consumers are increasingly health-conscious. In the U.S., the market
segment that is focused on health and fitness, is part of a consumer group labeled as the LOHAS
segment. LOHAS is an acronym for Lifestyles of Health and Sustainability, and describes an
estimated $290 billion U.S. marketplace for goods and services focused on health, the
environment, social justice, personal development and sustainable living. Research shows that
one in four adult Americans is part of this group—nearly 41 million people. According to
experts, these consumers are the future for many businesses and also the future of progressive
social, environmental and economic change. But their power as a consumer market remains
virtually untapped.
A more health-conscious society is often attributed to the influence of the baby boomer. Baby
boomers are generally healthier, financially better off, better educated, and more interested in
novelty, escape, and authentic experiences than were previous cohorts of older people. But
younger generations too are health and wellness focused. Millennials for example, are dieting
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less frequently than other generations, but consuming fewer calories daily. For this generation,
fresh and organic foods are in style. According to recent research, a large proportion of
millennials are motivated by the need to feel empowered and achieve tangible successes with
respect to their health and wellness. They spend money on gym memberships, running gear and
energy bars and seek out specific health foods like whole grain breads, nuts and seeds, and
quinoa. This generation is also driving the demand for self-tracking technologies. A recent
survey found that 40% of smartphone users want their phone to log all of their physical
activities, 59% would like to use a wristband to complement those measurements, and 56%
would like to monitor their blood pressure and pulse using a ring.
The tourism sector is responding to this trend with health and wellness centers springing up in
many destinations. For example, EVEN Hotels in Norwalk, Connecticut and Rockville,
Maryland provide various options for guests to maintain/improve a heathy lifestyle during the
stay. Each hotel room has designated in-room training zone, with available fitness facilities and
training guides and videos. A professional Athletic Studio with fitness instructor and group
classes are provided to fit guests’ routine customized by the staff. Natural, healthier meal choices
such as heart healthy or gluten-free meals are provided in the hotel as well. Resorts are also
responding to an increased demand for spiritual enlightenment whilst on a vacation. Sundance in
Utah for example, has several spiritual learning classes for visitors including a Mindfulness
Meditation class that, according to the resort, “will show you how to discover the nature of our
mind and begin to actualize its extraordinary potential for lasting happiness through the joyful
and heart-opening path of compassion and wisdom. This 30-minute class is designed to
strengthen your body, quiet your mind and bring your body, mind and spirit in harmony.”
Another Morning Yoga at Sundance class combines the most useful elements of Beginning and
Advanced Hatha, Vinyasa and Ashtanga Yoga “leaving you feeling empowered and awake.”
5. Customization: Consumers are increasingly looking for customized solutions that fit their
specific needs, becoming more engaged with product creation. In the travel industry, requests for
customized and personalized vacations are rising sharply, and both agents and traditional tour
operators are changing their businesses to meet that demand. In addition to booking air tickets
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and hotel accommodations, agents and outfitters today are arranging customized wine tastings,
visits to artisan workshops, and private after-hours tours of attractions such as the British crown
jewels and the Vatican.
At the Grand America in Salt Lake City, for example, Director of Guest Experience, Annie
Fitzgerald says “We ensure all employees are empowered to make each guest’s stay exceptional
and a personalized experience. If our employees learn something about our guests that will
enhance their stay, we will recognize and deliver. For example, if we learn upon arrival that a
couple is celebrating an anniversary, we will deliver a cake and card wishing them a Happy
Anniversary, likewise with honeymoon couples who receive chocolate covered strawberries and
a card. We recognize birthdays and we love taking care of guests who bring their children. We
often provide balloons or small welcome toys for the little ones.”
The Grand America also has a ‘Grand Ambassador’ whose role is to ensure that all repeat guests
are recognized appropriately. “Our operating system will track all of our guest preferences, and
our Ambassador then reviews all reservations and prepares for these requests,” says Fitzgerald.
Requests can range from a preference for a special room or view, to the type of linens a guest
requires to be comfortable. “All of these things make the Grand America truly a home away
from home and ensure the retention of our guests”.
6. Convenience and Speed: The increasing desire for convenience and speed is having a
greatimpact on various sectors of the tourism industry. In the restaurant sector, drive-through
sales are on the rise; in transportation, self check-in terminals are increasingly popular; and in
accommodation, business travellers are seeking convenient rooms for shorter stays. An example
of the latter is the hotel concept introduced at Heathrow and Gatwick airports in the U.K. Owing
much to Japanese ‘capsule hotels’, Yotel cabins are a cross between a hotel and a first-class
airline seat. Each self-contained cabin has a double rotating bed, and facilities include an ensuite
bathroom with shower, a flat-screen television and a pull-down desk. There is also the suggestion
that travel in the future will be geo-local, meaning that people will travel much closer to their
home – more within their homeland and continent, and less outside it. A new survey by the
European Commission found that EU residents generally stay in their home country during their
time off – 57% of people in the EU last year took a trip within their own country. Some 15% of
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all EU residents spent time on holiday in Spain in 2013, the most popular destination ahead of
France (11%) and Italy (10%), according to the survey.
7. Service Quality: Service quality has been increasingly identified as a key factor in
differentiating service products and building a competitive advantage in tourism. The process by
which customers evaluate a purchase, thereby determining satisfaction and likelihood of
repurchase, is important to all marketers, but especially to services marketers because, unlike
their manufacturing counterparts, they have fewer objective measures of quality by which to
judge their production. Many researchers believe that an outgrowth of service quality is customer
satisfaction. Satisfying customers has always been a key component of the tourism industry, but
never before has it been so critical. With increased competition, and with more discerning,
experienced consumers, knowing how to win and keep customers is the single-most important
business skill that anyone can learn. Customer satisfaction and loyalty are the keys to long-term
profitability, and keeping the customer happy is everybody’s business. Becoming customercentered and exceeding customer expectations are requirements for business success.
In Colorado, Vail Resorts, are always looking for ways to exceed expectations and drive loyalty.
“We have a program called Epic Wishes”, says Ashley Lowe, Senior Manager of
Communications. “Staff is empowered to seek out guests who mention on social media that
they’re coming to visit, and we find a unique experience to offer them to enhance their Epic
Vacation. Examples include providing birthday cake, giving rides in grooming cats to kids, and
offering a woman who injured herself on her first day of skiing a free spa treatment and dinner.”
Lowe acknowledges that these initiatives need to come from the top. She points to one General
Manager, Jonathan Fillman, of Mountain Thunder Lodge who routinely writes hand written
notes to his guests, and encourages his staff to as well. When a recent guest commented on
TripAdvisor that it was his seventh stay at Mountain Thunder Lodge and he loved it, Jonathan
sought him out, discovered he was still staying at the property, and asked him how he could
make his stay better. “The gentleman said he was going to hike a 14’er the next day and asked
Jonathan if he knew how to get there. Jonathan replied, “Do I know how to get there? I’ll take
you there!” Jonathan picked the guest up at 4am the next morning and did the full hike with
him.”
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8. Engagement and Connectivity with Technology: The Internet has upended how consumers
engage with brands to the extent that consumers are promiscuous in their brand relationships.
They connect with myriad brands through new media channels often beyond the marketer’s
familiarity or control. In the past, marketing strategies emphasized brand awareness and ultimate
purchase. However, after purchase, consumers may remain aggressively engaged, actively
promoting or assailing the products they have bought, and collaborating in the brand’s
development. As the world has entered the “Apps” phase, consumers are looking for apps across
all sectors of society to improve their everyday lives. Apps are particularly helpful and
convenient for travel and tourism activities such as finding restaurants, leisure activities, and
shopping.
Nowadays, consumers expect internet access everywhere, especially when they are traveling and
staying in a destination away from home. The fast global usage of smartphones has significantly
changed the way we communicate and use the internet. Smartphone users expect reliable Wi-Fi
connection for their mobile devices in destinations and hotels/resorts. Consumers are less
forgiving of connectivity issues, and inferior service will certainly hinder their satisfaction with
the destination and overall travel experience.
In addition to the apps and Wi-Fi connection, more advanced technology will attract consumers
to destinations and resorts due to the cutting-edge features that provide easier and convenient
connectivity. For example, Fingi technology allows guests to use a smartphone to customize and
control every aspect of their stay – from all in-room elements and instant ordering of hotel
services to direct communication with the hotel and the outside world. At check-in, hotel guests
receive a smartphone, which serves as the room key and is used for paperless payment, full
climate control, curtain, and lighting, operation of the entertainment system, and easy access to
guest services such as room service and laundry. Fingi technology has been used in hotels such
as Holiday Inn and Aloft Hotel in Thailand and Europe. Sheraton Hotel in Dubai also adopted
the “Smart Hotel” concept using iPad with Smart-G4 SBUS Automation to customize and
control individual hotel guest’s experience.
Resorts in Europe are also responding to consumer demand for connectivity, with resorts like
Alpendorf and Sölden in Austria installing free Wi-Fi access points within their entire ski areas.
Alpendforf’s website boasts “with over 300 Wi-Fi hotspots in the Ski amadé you will be able to
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access the internet no matter where you are. This innovation is not just a gimmick for internet
junkies. Using any Wi-Fi-compatible device (Smartphone, iPad, laptop), you can now access
your social networks, send photos and emails or upload an app such as the Ski Amadé Guide
with additional services and information where you need it most: mountain side!” Val Thorens in
France also offers free Wi-Fi through Aerohive Wi-Fi terminals. “We want to offer our users
quality optimal service in order to improve their stay in the resort. We anticipate their needs by
providing them with Wi-Fi access in our ski lifts”, said Eric Bonnel, SETAM ski lift company's
sales and marketing manager.
9. The Blurring of Business and Leisure Travel: The lines between business and leisure travel
are becoming increasingly blurred. A recent Expedia study found that 56% of millennials extend
their business trips into leisure trips. Mobile devices are having a profound effect on the
traditionally defined silos between managed and unmanaged travel, with 43% of international
travelers taking their mobile professional devices with them on holiday or on weekend trips. This
presents new opportunities for airlines, hotels and destinations alike, all of which have to
configure their services to be flexible. Conference and meeting planners also have to be
cognizant of these changes, ensuring that they incorporate an element of leisure when they plan
their meetings.
The Edelweiss Hotel at the foot of the Alberg in Austria for example, promotes itself as the ideal
conference or business incentive destination. Promotional material promises seminars and
incentives in the Arlberg that “will leave an unforgettable impression on all participants.
Enhance motivation, loyalty, and team spirit in an Incentive in the Arlberg: While skiing in,
while dining together and while relaxing and celebrating in the bars and lounges.” Tour operators
too are catering for travelers who want to combine business with leisure time. Travelplan Ski
Holidays, based in Australia, for example, offers a range of conferences for professionals in
some of the world's best ski resorts. Over the years Travelplan have offered a range of specially
designed conferences at ski resorts such as Aspen, Fernie, Whistler-Blackcomb, Sun Peaks &
Steamboat “that ensure you maximize you skiing time whilst you learn”.
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10. Experiences: A key innovation in today’s business is experiences. Firms across a variety of
industries from health care to airlines to automobiles are developing strategies around providing
meaningful customer experiences. The ‘experience economy’ was a term coined by Pine and
Gilmore to describe the business of selling experiences. They described experiences as a fourth
economic offer, one that is distinctly different from the traditional commodities, goods and
services that drive economic growth. Using a theatrical analogy they describe ‘services’ as the
stage used to create experiences and ‘goods’ as the props that are used in planning and
sequencing a series of memorable events. Pine and Gilmore provide examples of how large
companies like Walt Disney welcome guests, engage visitors, and provide an endless array of
interactive experiences.
In an environment of ever more sophisticated consumers, those who deliver memorable customer
experiences consistently create superior value and competitive advantage. Some of the benefits
of delivering experiences are happy customers, repeat business, increased sales, enhanced brand
identity, free marketing via word of mouth referrals and the creation of an emotional bond with
customers. The benefits of creating experiences for customers is gaining momentum and
demonstrating its business value in the tourism industry. In 2002, the World Tourism
Organization reported a shift from active holidays to holidays as an experience. A survey
sponsored by America Express found that the number one ranked ‘most-memorable experience’
for consumers was connected to a holiday. Demand is growing for authentic travel that engages
the senses, stimulates the mind, includes unique activities, and connects in personal ways with
travelers in an emotional, physical, spiritual or intellectual level. A related trend is ‘experience
caching’ whereby consumers continually collect, store and display their experiences for private
use, or for friends, family, even the entire world to peruse.
Tourism destinations are responding to these demands, as they are naturally keen to attract new
customers, repeat guests, and meet the needs of niche and mainstream markets interested in
experiential travel. Destinations should serve as experience providers who sequence and stage
carefully choreographed activities, personal encounters, and authentic experiences, designed to
create long lasting memories, engaging travel, and increase customer loyalty. A good example
can be found at the Washington School House in Park City Utah. The hip town's newest luxury
boutique hotel offers guests one of the most unusual winter activities with yoga deep inside a
10,000-year-old crater at The Homestead Resort. The instructor demonstrates yoga poses from
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the dock while guests move and bend on paddleboards that float in the 90-plus-degree natural
therapeutic pool. And to satisfy demand for ‘experience caching’, the hotel produces a motion
picture for guests with a snapshot of their entire trip. A videographer snaps photos and film a
day’s worth of live footage, and following the visit, guests receive their very own edited feature
film and photo book.
Acknowledgements
Special thanks to the following individuals and organizations that have contributed to this
research and report:
Bucky and Wendi Oliver, Front Street Village
Stedman Stevens, Front Street Village
Carol Lohr, Crystal Coast Tourism Authority
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http://www.ncmaritimemuseums.com/beaufort.html
Martin, K (2014) ‘Overcrowding on beaches,’ accessed 11/22/2014 from
http://www.ehow.com/info_7811749_overcrowding-beaches.html
PKF Consulting (2014) ‘Proposal Front Street Village Inn & Bistro’.
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Sustainable tourism (2014) ‘Problems of unsustainable coastal tourism,’ accessed 11/22/2014
from http://www.biodiversity.ru/coastlearn/tourism-eng/why_problems.html
Quarterdeck Club (Bitter End Yacht Club)- http://www.beyc.com/index.php/quarterdeck-club
Schmitt, B.H. (2003) ‘Customer experience management,’ Hoboken, NJ: John Wiley & Sons.
St. Augustine Vacation Guide. http://augustine.com/
Sanibel & Captiva Islands. http://www.fortmyers-sanibel.com/discover/communities/sanibeland-captiva-islands/
The Crystal Coast – Visitors Guide - http://www.crystalcoastnc.org/
Town of Beaufort (2014) ‘Strategic economic development plan’.
TripAdvisor. (2007) ‘TripAdvisor travelers keen on going green,’ accessed 11/22/2014 from
www.tripadvisor.co.uk/PressCenter-i120-c1-Press_Releases.html
Trip Advisor – Beaufort NC - http://www.tripadvisor.com/Tourism-g48947Beaufort_North_Carolina-Vacations.html
Coastal Living (2014) ‘Top 10 happiest seaside towns,’ accessed 11/22/2014 from
http://www.coastalliving.com/travel/top-10
trendwatching.com (2013) ‘7 Consumer trends to run with in 2014,’ accessed 10/22/2014 from
http://www.trendwatching.com/trends/7trends2014
TripAdvisor (2012) ‘TripAdvisor survey reveals travelers growing greener’, accessed 11/15/2014
from http://www.http://www.tripadvisor.com/PressCenter-i5154-c1-Press_Releases.html, 7
April.
TripAdvisor (2014) ‘Best beaches in 2014,’ accessed 11/15/2014 from
http://www.tripadvisor.com/TravelersChoice-Beaches
Val Thorens United (2014) ‘Wi-Fi On The Ski Area’, accessed 10/22/2014 from
http://www.valthorens.com/winter-en/val-thorens/live/news/news-detail/wi-fi-on-the-skiarea.378.a624.html 7 April.
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Visit St. Marys, Georgia. http://www.visitstmarys.com/event-calendar---festivals.html
Visit NC - http://www.visitnc.com/things-to-do
Voss, C. (2003) ‘The experience profit cycle,’ A Research Report published by the London
Business School, Centre for Operations and Technology Management, pp. 2.
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Appendices
Appendix A – Resource Audit of Beaufort and Region
Tourism Sites in Beaufort North Carolina
Site Name
Baymont Inn & Suites
County Home B & B
Beaufort Inn & Suites
Inlet Inn
Beaufort Harbour Suites
Houseboat Rentals-The Crystal
Bakery At Spouter Inn
The Cedars Inn
Langdon house Bed & Breakfast
Pecan Tree Inn
Ann Street Inn
The Spouter Inn
Front Street Grill at Stillwater
Old Salt Restaurant & Oyster Bar
Royal James Café
Finz Grill
Cru Wine Bar & The Wine Store
Aqua Restaurant
Clawson's 1905 Restaurant
Dockhouse Restaurant
Ribeyes Steakhouse
Plaza Mexico Bar & Grill
Boardwalk Café
Queen Anne's Revenge
Beaufort Grocery Co
Blue Moon Bistro
No Name Pizza and Subs
Rolands Barbecue
Outerbanks Seafood
Krystal's Treasures
Beaufort Café
Burger King
Captain Rod's Lowcountry Tours
Categories
Accommodations
Accommodations
Accommodations
Accommodations
Accommodations
Accommodations
Accommodations
Accommodations
Accommodations
Accommodations
Accommodations
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Food & Beverage
Activities
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Beaufort Historic Site
Double-Decker Bus
The Mullet Line Trolley
Hungry Town Bike Tours
CrystalLady Cruises
Good Fortune Sailboat
Island Ferry Adventures
Lookout Cruises
Pirate Cruises on the Renegade
Port City Tour Company
Southern Air at MRH
Twisted Trolley
Waterbug Tours
Beaufort Ghost Walk
The Wild Horse & Shelling Safari
Discovery Diving Co.
North River Golf Club
Winyah Bay Heritage Festival
Jumble Sale
Jim Carson in the Mattie King Davis Art Gallery
Christmas Candlelight Tour
Christmas Concert Vivaldi Project Trio
Community Thanksgiving Feast
Kindergarten Thanksgiving: Week 1
Beaufort Wine and Food Weekend
Easter Egg Hunt
Beaufort Historic site Publick Day
Olde Beaufort Farmers’ Market
The Beaufort Pirate Invasion
Christmas Flotillas
Train Show
Historic Beaufort Road Race
Beaufort Old Homes & Garden Tour
North Carolina Maritime Museum
Core Sound Waterfowl Museum & Heritage Center
Beaufort Historic Site
Robert W. and Elva Faison Safrit Historical Center
Activities
Activities
Activities
Activities
Activities
Activities
Activities
Activities
Activities
Activities
Activities
Activities
Activities
Activities
Activities
Activities
Activities
Festival and Events
Festival and Events
Festival and Events
Festival and Events
Festival and Events
Festival and Events
Festival and Events
Festival and Events
Festival and Events
Festival and Events
Festival and Events
Festival and Events
Festival and Events
Festival and Events
Festival and Events
Festival and Events
Cultural and Historical
Attractions
Cultural and Historical
Attractions
Cultural and Historical
Attractions
Cultural and Historical
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Josiah Bell House
Samuel Leffers Cottage
John C. Manson House
Carteret County Courthouse
Old County Jail
Apothecary shop and Doctor's Office
R. Rustell House
Old Burying Ground
Rachel Carson Reserve
Cape Lookout National Seashore
Fort Macon State Park
Freedom Park
Crystal Coast Beaches
Croatian National Forest
Newport and Neuse River
North Carolina Inter-Coastal Waterway
Barrier Islands
Back, Bogus and Core Sounds
Ceder Island Refuge
Attractions
Cultural and Historical
Attractions
Cultural and Historical
Attractions
Cultural and Historical
Attractions
Cultural and Historical
Attractions
Cultural and Historical
Attractions
Cultural and Historical
Attractions
Cultural and Historical
Attractions
Cultural and Historical
Attractions
Natural Attractions
Natural Attractions
Natural Attractions
Natural Attractions
Natural Attractions
Natural Attractions
Natural Attractions
Natural Attractions
Natural Attractions
Natural Attractions
Natural Attractions
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Appendix B - Strengths and Weaknesses of Beaufort and Region
Strengths –
4. Rich history
o Third oldest city in North Carolina
o Maritime history
o Pirate history (Blackbeard and Queen Ann’s Revenge)
o 12-block historic district
5. Location
o NC Innercoastal Waterway
o Near a major port
o Soon to be have direct access for RDU and 95 market
o Ferry access to Sharkerford Island and Cape Lookout
o Close Proximity to many well-known and established outdoor recreational
opportunities

Barrier Islands

Cape Lookout National Seashore

Rachel Carson Preserve

Cedar Island National Refuge

Back Sound and Bogue and Core Sound

Croatian National Forest

Newport and Neuse River

Crystal Coast beaches
6. Maritime Culture
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o NC Maritime Museum
o Duke University Marine Laboratory
o National Oceanic and Atmospheric Administration Center
o Well established recreational and boating culture
7. Michael J. Smith Field Airport (Regional Airport)
8. Strong community engagement and local pride, especially the older generation
o Well connected an politically powerful local citizens
9. Quaint downtown with some local eclectic restaurants, retail and B&B’s
10. Voted “America’s Coolest Small Town” by Budget Travel Magazine in 2012
11. Well established differentiation between Beaufort and Atlantic City Beach/Morehead
12. Well established year round festival and events
Weaknesses –

Location
o Not directly on the beach
o Currently no direct route to destination from the RDU and 95 markets, this will
change soon. Marketing and educational programs will need to be conducted to
reprogram potential tourist to visit. Just building a highway is not enough. Efforts
need to be made to educate the tourist about the easy access.
o Closest town/city with more than 100,000 people is one hour away
o Poor coordination between communities with respect to economic and tourism
development
o Limited lodging options
o No nationally known or corporate accommodations
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
Population
o Compared to North Carolina, higher level of older adults (65yr and older) and
o Limited opportunities (employment, education, extra-curricular activities) for
youth and younger generation

Non-Water based recreation opportunities are limited
o Limited trials, walking paths and bike paths. Most of the communities is
accessible by car or by walking/biking on the street.
o Limited activities for children and young adults
o Limited nightlight/bars/clubs

Infrastructure development needed.
o Some waterfront and downtown building need repair and renovations.
o Also, road and sidewalks in downtown need to be replaces or repaired.
o Above ground power lines which cause visual degradation to the scenic landscape

Lacks a well-known brand, often confused with Beaufort SC and Beaufort County NC.

Extreme distribution of wealth (Average income is $47,780, 12.1% making less than
$10,000 and 3% over $200,000)

Limited event space
o Limited upscale facilities
o Limited space for large groups and large weddings
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