Qualla 2020: Diversifying the Qualla Economy Second Meeting March 21, 2014 Page 2 Agenda - Morning 9:00 Welcome and Introduction 9:15 Information from CEDS Process 9:45 Tourism Trends and Challenges 10:45 12:00 Develop Options for Cultural and Heritage Tourism Lunch Page 3 Agenda - Afternoon 12:30 Recommend Options for Detailed Investigation 1:30 Review Focus and Membership for Task Teams 2:30 Next Steps, Assignments 3:00 Adjourn Page 4 Qualla 2020 Goals The purpose of the Qualla 2020 Project is to diversify the Cherokee economy and reduce its risks so that it can better ensure the well-being of the Cherokee population into the future. In order to do this, the Qualla 2020 Project will seek to mitigate the dependence of the economy on gaming revenues, and to develop and expand businesses in ways that uphold the core values of the Cherokee people. Page 5 Qualla 2020 Process Six Committee meetings Tuesday, February 25, 9:00 am – 3:00 pm Friday, March 21, 9:00 am – 3:00 pm Yellow Hill Activity Center (Old Hardware Store) Wednesday, April 23, 9:00 am – 3:00 pm Wednesday, May 21, 9:00 am – 3:00 pm Friday, June 27, 9:00 am – 3:00 pm Tuesday, July 15, 9:00 am – 3:00 pm Task teams will meet by phone between Committee meetings to develop detailed action plans for Committee review Committee will choose action plans to recommend to EBCI Administration, EBCI Tribal Council and Cherokee Preservation Foundation Page 6 Action Plan Definition Action plan criteria: Achievable with the resources controlled by institutions and individuals on the Qualla Boundary Create visible differences within a year or two Support traditional Cherokee values and culture Action plan elements: Goal Participants Activities Organizational leadership Resources required Funding sources Timeline Page 7 Agenda - Morning 9:00 Welcome and Introduction 9:15 Information from CEDS Process 9:45 Tourism Trends and Challenges 10:45 Develop Options for Cultural and Heritage Tourism 12:00 Lunch 8 9 11 12 Page 14 Strengths: Tourism Industry Assets Cherokee Culture -- The Southeast Tourism Society named the Cherokee, NC area the Travel Attraction of the Year in 2006 Harrah’s Cherokee Casino Overall gaming revenues dropped after 2007; now recovering Opened a new 23-story hotel tower and greatly expanded gaming space Opened 3500 seat entertainment venue Opened several new food and dining venues Ruth’s Chris Steakhouse Brio Tuscan Grille Others Gateway Community for Great Smoky Mountains National Park The nation's most visited national park in 2012 Nine million visitors spent over $818 million in the gateway communities surrounding the Park Southern terminus to Blue Ridge Parkway Page 15 Strengths: Tourism Industry Assets Cultural attractions: Unto These Hills, Oconoluftee Indian Village, Cherokee Museum, Qualla Arts and Crafts Improved Tourism Amenities and Infrastructure Opened Robert Trent Jones-designed Sequoyah National Golf Club in 2009 Named the 9th Best Course in North Carolina by GOLF MAGAZINE in 2010 Design Team included Notah Begay III, a Native American Golf Celebrity and philanthropist Completed major renovations of “Downtown” Cherokee Opened the Cherokee Action Sports Park in 2011, one of the largest skateboard and BMX bike parks in North Carolina Reopened the newly renovated the Cherokee Fun Park in 2011, a popular arcade, go cart track and entertainment facility Page 16 Strengths: Infrastructure / Natural Resources Transportation – Ample access to region’s commercial and population centers Telecommunications – Excellent broadband access through BalsamWest Fiber Net Deployed approximately 300 miles of underground fiber that serves 10 counties in NC, GA & TN The joint venture with Drake Enterprises positions the Tribe for future growth in this area The Environment -- The Boundary has a highly desirable natural environment that is attractive for tourism, particularly in summer and fall. Page 17 Strength: Access to Federal Resources Awards for Economic Development projects received from the federal government since 2007: Old #4 Sewer Line (HUD-ICDBG) $447,187 Soco Sewer Line (EDA) $1,000,000 Tsali Care Center (ICDBG) $487,500 EBCI Facility Retrofit (DOE) $200,000 EBCI Streetlight Retrofit (DOE) $253,100 Strategic Energy Plan (DOE) $100,000 Partnership Planning Grants (EDA) $319,740 Electronic Fishing Licenses (HHS/ANA) $213,000 Digital/3D capacity a Theatre (USDA RBEG) $200,000 GIS Grant (ANA) $151,000 Total $3,371,527 Page 18 Weakness: Lack of Significant Diversity in Economic Base Tourism-Based Economy Heavy dependence on gaming revenue Tourists who come for gaming unlikely to be interested in cultural aspects of Cherokee Non-gaming tourism in Cherokee was down marginally between 2007 and 2011 The majority of tourists who come through Cherokee do not stay overnight Many tourism retail amenities remain largely outdated and in need of refurbishment The negative impact of the ongoing recession on disposable income and gas prices Competition from consumer-oriented attractions in the Gatlinburg/Pigeon Forge area Limited workforce -- The demand for seasonal labor for the tourism industry far outstrips the available workforce Page 19 Weakness: Lack of Significant Diversity in Economic Base Limited employment opportunities outside of gaming and tourism This sector employs over 30% of the labor force Nearly 37% of labor force work in public sector positions (public administration, education, healthcare, social services) Approximately 42% of the adult population on the Qualla Boundary are not in the labor force Educational attainment levels not attractive to high-skilled / high wage occupations Less than 10% of the adult population on the Qualla Boundary have attained a degree from a four-year college Page 20 Top Ten Projects Recommended by CEDS Committee Direct Investments for EBCI Portfolio Adventure Park/Canopy Walk Elementary School Parcel Water Activities Center - Pool and Beach Cherokee Crossing Bowling Alley Snowbird Lodge Former High School Site Riverside Campground Wildlife Attraction Page 21 Agenda - Morning 9:00 Welcome and Introduction 9:15 Information from CEDS Process 9:45 Tourism Trends and Challenges 10:45 Develop Options for Cultural and Heritage Tourism 12:00 Lunch Page 22 Tourism Trends Trends for the NC Mountain Region in 2012 86% of visitors came to the NC Mountain Region for pleasure purposes, 8% for meetings and conventions Overnight visitors spent an average of 2.8 nights 62% of the overnight visitors stayed in a hotel/motel The average party size for all visitors was 2.0 people 24% of all travel parties included children 92% of all visitors drove in, 4% came by air Average trip expenditure was $547, for overnight visitors it was $664 58% of households visiting had incomes over $50,000, with 33% over $75,000 84% of visitors were repeats, with 16% first time 61% of overnight visitor heads of household had a college degree or higher Page 23 Options for Cherokee Focus on Authentic Cherokee Create attractions that emphasize Cherokee culture and heritage for the more educated and affluent visitor Offer visitors multiple-day itineraries Develop nature/light adventure-based attractions for the more active visitors, both guided and independent Create guided tours of the many Cherokee trails, historic sites of significance and natural landscapes Offer more live attractions such as music-dance-culinary festivals, markets and events Elevate the presence of authentic Cherokee arts with increased visibility and access Conduct guided birding, botanical, wildlife and traditional wilderness skills tours Page 24 National Tourism Trends Changing nature of tourism in US Baby boomers Retirees/aging population Effects of the economy Changing demographics Types of tourism/case examples Cultural tourism Historic/Heritage tourism Nature-based tourism Adventure tourism Arts – Visual, Performing, Culinary Agri-tourism Page 25 Expenditures by Tourists in NC – Up Again After Recession NC Tourism Expenditures (billions) 25 20 15 10 5 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Page 26 Number of Visitors to Great Smoky Mountains Has Remained Stable (Total and Through Cherokee) Page 27 But Attendance At Key Cherokee Attractions Has Declined Sharply Page 28 Existing Initiatives to Support Tourism State-wide Blue Ridge National Heritage Designation branding and marketing plans NC Green Travel Initiative NC International Marketing and Travel Development Smoky Mountain Host promotion HandMade in America (Handmade art/crafts promotion) Wild South Cherokee Journey (Google Earth application) Cowee to Nikwasi Corridor, Land Trust for the Little Tennessee River Cherokee sites and attractions state-wide American Indian/Alaska Native Tourism Alliance Mary Jane Ferguson, former President Page 29 Cultural and Heritage Tourism o Cultural Expressions • Songs, Dance, Stories • Lifeways, Social Structure • Games, Sports • History • Cooking, Natural Foods, Medicines • Language • Connections to Nature • Apparel, Handcrafts, Art Forms • Agriculture • Hunting, Weapons • Dwellings, • Sacred Places, Spirituality Page 30 Potential Tourism Strategies Think both Short and Long-Term Develop Tourism Supported by Cherokee Strengths Existing Cultural Attractions – Cherokee Museum, Mountainside Theater, Oconaluftee Indian Village, Qualla Arts and Crafts Eastern Cherokee People Eastern Band of Cherokee Indians – A Sovereign Entity Art Forms – Visual, Performance, Culinary, Storytelling History, Historical Places Natural Landscapes and Waterways Great Smoky Mountains NP Lodging Address Weaknesses Poor Appearance of Many Retail Outlets Page 31 Agenda - Morning 9:00 Welcome and Introduction 9:15 Information from CEDS Process 9:45 Tourism Trends and Challenges 10:45 Develop Options for Cultural and Heritage Tourism 12:00 Lunch Page 32 Develop Options for Cultural and Heritage Tourism Review list of potential options to increase cultural and heritage tourism Previous meeting This morning’s discussion Add, refine, combine into set of options Discuss each option Objective Key activities Important participants Page 33 Strategies Suggested at Qualla 2020 Meeting Increased focus on cultural tourism Outdoors and natural resources Increased promotion of fishing, birding, and wildlife viewing Creation of a wildlife preserve Culturally based mixed use space to help/push downtown to upgrade Central tourism “platform” Support for cottage industry and craftspeople Tours of historic sites Allows purchase of all tickets at one location Marketing spending at rates that are comparable to competitors Family focus “Destination mindset” Page 34 Agenda - Afternoon 12:30 Recommend Options for Detailed Investigation 1:30 Review Focus and Membership for Task Teams 2:30 Next Steps, Assignments 3:00 Adjourn Page 35 Analyze Options (small groups) Small group assignment Analyze how well each option fulfills criteria: Achievable with the resources controlled by institutions and individuals on the Qualla Boundary Start to see visible differences within a year or two Supports traditional Cherokee values and culture Pick top five options for Tourism task team to review in detail Each team will have five “voting dots” Page 36 Recommend Options Teams use voting dots to record their preferences Voting dots are tallied, and top five options are recommended to Tourism Task Team Tourism Task Team members (and others) clarify the details of the top five plans Page 37 Agenda - Afternoon 12:30 Recommend Options for Detailed Investigation 1:30 Review Focus and Membership for Task Teams 2:30 Next Steps, Assignments 3:00 Adjourn Page 38 Task Teams Chosen Last Meeting Tourism (particularly cultural and heritage tourism) Knowledge industries Small business and entrepreneurial development Government and 8(a) contracting Real Estate Page 39 Team Report-Out and Discussion For each task team, report out and discuss Recommended focus for the team Current team membership Examples of options being considered Additional individuals recommended/sought for addition Page 40 Next Steps Second meetings of task teams by phone Add new members Clarify potential options Develop workplans and timelines : who has to do what by when? Research Interviews Financial analysis Exploration of funding sources Development of recommendations BWB Solutions and Medicine Root will staff and facilitate tasks teams and conduct additional research as necessary Page 41 Contact Information Ben Sherman sherman1491@gmail.com (303) 818-4926 John Weiser johnw@bwbsolutions.com (203) 314-8600