Developing Rural
Tourism Businesses
Alan Barefield
Southern Rural Development Center
alanb@srdc.msstate.edu
(662) 325-3207
Kathy Tweeten
North Dakota State University
ktweeten@ndsuext.nodak.edu
(701) 328-9718
What is tourism?
The practice of traveling for
recreation. The guidance or
management of tourists as a
business or governmental function.
The economic activities associated
with and dependent on tourists.
Webster’s Dictionary
What is
Rural Tourism?
Rural Tourism
Opportunities
• Hunting Services (Leasing & Guiding)
Rural Tourism Opportunities
• Hunting Services (Leasing & Guiding)
• Fee Fishing & Guide Services
Rural Tourism Opportunities
• Hunting Services (Leasing & Guiding)
• Fee Fishing & Guide Services
• Cabin Rentals
Rural Tourism Opportunities
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Hunting Services (Leasing & Guiding)
Fee Fishing & Guide Services
Cabin Rentals
Bed & Breakfasts
Rural Tourism Opportunities
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Hunting Services (Leasing & Guiding)
Fee Fishing & Guide Services
Cabin Rentals
Bed & Breakfasts
Horseback Riding
Rural Tourism Opportunities
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Hunting Services (Leasing & Guiding)
Fee Fishing & Guide Services
Cabin Rentals
Bed & Breakfasts
Horseback Riding
Kayaking, Rafting, & Tubing
Rural Tourism Opportunities
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Hunting Services (Leasing & Guiding)
Fee Fishing & Guide Services
Cabin Rentals
Bed & Breakfasts
Horseback Riding
Kayaking, Rafting, & Tubing
Off-road Biking
Rural Tourism Opportunities
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Hunting Services (Leasing & Guiding)
Fee Fishing & Guide Services
Cabin Rentals
Bed & Breakfasts
Horseback Riding
Kayaking, Rafting, & Tubing
Off-road Biking
Festivals
Rural Tourism Opportunities
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Hunting Services (Leasing & Guiding)
Fee Fishing & Guide Services
Cabin Rentals
Bed & Breakfasts
Horseback Riding
Kayaking, Rafting, & Tubing
Off-road Biking
Festivals
Museums
Rural Tourism Opportunities
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Hunting Services (Leasing & Guiding)
Fee Fishing & Guide Services
Cabin Rentals
Bed & Breakfasts
Horseback Riding
Kayaking, Rafting, & Tubing
Off-road Biking
Festivals
Museums
Corn Mazes
Problem Areas
To Address
• Lack of destination attraction in rural
areas
– Why would people come to your area to
visit?
– Is there anything to keep them there?
– This could be a perfect opportunity to
COOPERATE!
Problem Areas
To Address
• Lack of marketing expertise
– There are many agencies, organizations,
and associations devoted to tourism
– Many of these services are free
– Contact the state department of tourism
Problem Areas
To Address
• Undercapitalization
– Tourism businesses typically have a long
startup period
– Profit margins are usually thin (especially
in the startup period)
– Occupancy or attendance rates are the key
Problem Areas
To Address
• Lack of customer identification
– Your market is probably not the world
– What is the target group?
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Families
Singles
Seniors
Youth
Men
Women
Marketing Considerations
• Determine the set of attractions that
will make tourists stop or preferably
stay in your area
Marketing Considerations
• Determine your niche in this set
– What product or service would you like to
produce that other people would want to buy?
– Who will buy this product or service?
– Develop a business plan to determine the
feasibility of this enterprise
– The first step in the business plan is the
marketing study
Marketing Considerations
• What is the targeted market?
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How big is it?
What factors influence this market?
Is the market growing or declining?
What market share do you want to capture?
How does your business relate to the market?
• Will your business grow as the market grows?
• Will your business decline as the market declines?
Marketing Considerations
• Describe the competition
– Who are your five closest competitors?
• The competitors for a bed & breakfast are not other bed &
breakfasts
– What are the SWOTs of these competitors?
• Strengths
• Opportunities
Weaknesses
Threats
– How is your business different from the competitors?
– How is it better?
Sweetwater
Valley Farm
Smoky Mountain Ham
Fee Fishing
& Guide Services
Bird Watching
Retention and
Expansion of
Agri-tourism
Businesses
opportunityisnowhere
• Attitude
• Assess resources
– Human
– Financial
– Natural
• Visit a like business
• Study the market
• Determine the feasibility
Big Business!!!
• North Dakota - $63.2 million increase in
visitor spending in 2003
• Second largest industry
• $4.0 million in sales tax revenue (03)
• Growth continues!!!!
Customer Profile
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Millenial 8%
Generation X 22%
Baby Boom 39%
Swing & WWII (Matures)
Boomers -independent
spend more money
travel further
Trends
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Novelty and change
Simplify life
Group tours decreasing
Family vacations
Educational travel
Remote areas
Home state travel
Trends Con’t.
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Exercise and outdoor activity
Back to nature
Wildlife-related
Create memories
Fastest Growing Land-Based
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Bird watching
Hiking
Backpacking
Primitive Camping
Walking
Snowmobiling (fastest growing)
Do You Know What This Is?
Nesson Valley Gardens to
……
….Thunderbird Ranch
Gourmet Foods
Key to Success
Plan with the end in
mind.
Community College Connection
• Technical assistance
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Planning
Taxes
Legal structure
Feasibility analysis
Marketing – plan and tools
Best practices
Web page development
• Local advocate and supporter
• Conducting a BR&E Visitation Survey