Adventure Market Overview Area Attractions Luncheon May 22, 2014 Julie Thorner WHAT WE’LL COVER 1 Understand the value of the global adventure market 2 Recognize key adventure traveler demographic profiles and preferences 3 Comprehend the importance and opportunities presented by following best practices when operating in sensitive wilderness and cultural environments 4 Understand the size & economic impact of the local rafting industry, Pigeon & Ocoee Rivers SECTION 1 INDUSTRY TRENDS IN THIS SECTION • Global market value and growth projections • Information on adventure travelers: demographic and psychographic profiles • Adventure traveler preferences for activities, community engagement DEFINITION OF ADVENTURE TRAVEL RESEARCH METHOD THE ADVENTURE TRAVELER PROFILE DATA PRESENTED IN THE FOLLOWING SLIDES WAS DERIVED FROM ORIGINAL SURVEY RESEARCH. In 2013 the George Washington University and the ATTA collaborated to conduct a global survey of adventure travelers. An internationally known behavioral panel provider was used to survey a representative sample of international travelers aged 18 years old or older, who have traveled outside the country in their home country in the recent past. The surveys were translated into the native language of the participant’s home country. Respondents came from North America, Europe and South America. 1,739 surveys were collected of which 845 valid surveys were extracted. Seven responses were discarded due their outlier status. The final sample size is 838, yielding a combined margin of error of 3.4%. Regional sample sizes are as follows: North America Respondents – 213 Europe Respondents - 423 South America Respondents – 202 ADVENTURE TRAVEL COMPARED TO MAINSTREAM TOURISM [ Adventure travel is the fastest growing segment of the tourism industry. ] Growth ? Adventure Tourism: 65% growth in 2011 and 2012 42% penetration Adventure Tourism: 17% growth in 2009 and 2010 26% penetration Time 1950s 2000s 2010 2012 2050 ADVENTURE TRAVELER DEMOGRAPHICS 40.6% of travelers worldwide can be classified as adventure travelers [ Survey respondents were classified as “adventure travelers” if they cited one of the following activities as the “main” activity on their most recent trip. Archeological expedition Backpacking Birdwatching Camping Canoeing Caving Climbing Cycling Ecotourism Environmentally sustainable activities Fishing/fly fishing Heli-skiing Hiking Horseback riding Hunting Kayaking/sea/whitewater Kite surfing Motorized sports Orienteering Paragliding Rafting Research expeditions Safaris Sand boarding Sailing Scuba diving Snorkeling Skiing/snowboarding Standup paddle boarding Surfing Trekking Volunteer tourism ] ADVENTURE TRAVELER AGE SEGMENTATION The majority of adventurer travelers are 31 – 50 years old [ The table below provides further detail on the age breakdown of people within the 46.6% of all travelers classified as adventure travelers. >50 Years Old 33% 20-30 Years Old 21% 31-50 Years Old 46% ] ADVENTURE TRAVELER TRIP PLANNING BEHAVIOR [ For all age groups, online search is the most popular method with all age groups. Surprisingly, “friends” were not cited as a top source of trip planning information for people age 28 – 40. ] How else did you prepare for the last trip? Age Range Friends(*) Online Newspaper Travel TV DMO Book Air+Hotel Online Less than 28 56% 67% 22% 22% 11% 33% 11% 22% 28 - 40 18% 77% 36% 32% 23% 41% 36% 23% 41 - 50 63% 63% 19% 23% 11% 19% 23% 12% 51 -60 70% 67% 20% 34% 12% 39% 27% 12% More than 60 70% 70% 30% 27% 13% 37% 25% 12% Use Guide DID NOT PREPARE ADVENTURE TRAVELER ACTIVITIES OF INTEREST [ Volunteering is popular with almost every age group; backpacking and camping are popular with people age 28 – 60. GENERATIONS AGE RANGES ACTIVITIES Gen Yers Less than 28 Volunteer Tourism Environment 28 - 40 Camping• Hunting Sandboarding Volunteer Tourism 41 - 50 Archeology • Backpacking Canoeing• Cycling • Horseback riding Volunteer Tourism 51 -60 Camping, • Cycling Backpacking • Volunteer Tourism More than 60 Archeology • Volunteer Tourism Environment • Hiking Gen Xers Boomers ] Note: Sample size for age GenY and GenX age segments was small, therefore results are indicators of trends but not conclusive. ADVENTURE TRAVELER TRAVEL STYLE [ GenX and Boomers 41 - 60 travel with family, while GenY and Boomers 60+ travel in pairs ] GENERATIONS AGE RANGES MOST LIKELY TRAVELING PARTNER Gen Yers Less than 28 Partner 28 - 40 Spouse/partner 41 - 50 Family 51 -60 Family More than 60 Friends/Partner Gen Xers Boomers SECTION 2 THE IMPORTANCE OF BEST PRACTICES The following slides provide basic information on the need to adhere to best practices when leading adventure trips and the benefits that observing best practices can bring to a destination. ADVENTURE TOURISM DEVELOPMENT INDEX FRAMEWORK [ The ATDI describes 10 factors necessary for adventure market development; adherence to best practices is especially important in the areas of Safety, Natural , Cultural, and Adventure Activity Resources Sustainable Development Policies Entrepreneurship Image & Marketing Humanitarian Safety Health Adventure Activity Resources Cultural Resources Infrastructure Natural Resources ] BEST PRACTICES TO SUSTAIN NATURE, CULTURE AND ADVENTURE RESOURCES [ Adventure travelers and companies can influence the protection of land, culture and biodiversity - the base assets upon which adventure tourism is built ] TYPES OF BEST PRACTICES EVERY ADVENTURE BUSINESS MUST CONSIDER BEST PRACTICE AREA Environment Wildlife EXAMPLE • Leave No Trace • Best Practices for Marine, Mountain, Jungle Environments METHOD OF MONITORING Community members track changes in specific indicators, for example monitoring volumes of trash, demand for wastewater treatment Guides instructed not to bring guests too close to wildlife, or to Health of species populations lead groups through known nesting grounds Guest Safety Guides possess wilderness first aid and technical skills for the trips they lead Annual training tests for guides Community Communities are involved in the tourism supply chain Regular interaction with community groups to gauge their satisfaction with tourism SECTION 3 LOOK AT LOCAL RAFTING INDUSTRY IMPACTS • Total Guest Rafting Numbers for Top US Rivers • Pigeon River Historical Growth • Ocoee River Economic Impact Study Statistics provided by America Outdoors Association Rafting Guest Numbers Since 2009 Source: America Outdoors Association The Pigeon River: Consistent Growth Far Surpassing All Other Top Rivers Source: America Outdoors Association The Pigeon River: Explosive Rafting Growth at 750% Since 1995 Source: America Outdoors Association Let’s Extrapolate: Using the Recent Ocoee River TN Impact Study Source: America Outdoors Association Total Measured Economic Impacts of Ocoee Rafting Source: America Outdoors Association Leveraging Local Adventure Tourism Natural Assets to Market this Region • Great Smoky Mountains National Park: over 12-13MM visitors/year, the most visited park in the entire US NP system. • Within a day’s drive of most of the East Coast • Whitewater Rafting: Pigeon, Ocoee, Nolichucky TN; French Broad, Nantahala, Tuckasegee NC; Chattooga, Hiawasee GA • Mountain Biking & Hiking trails • Camping: backcountry (USFS, NP), campgrounds as base for day trips • Adventure Courses, set in natural locations, Ziplining, Ropes Challenge Courses, Adventure Aerial Parks • The combination of outstanding adventure tourism natural assets, a world renowned National Park, developed entry level adventure product, and exceptional shopping and theme park attractions next door is hard to beat for the vacationing public! Only the Southeast has this… Try out a local adventure trip/product soon! Questions/Ideas: Julie Thorner President, Liquid Spark Inc. PO Box Bryson City, NC 29718 www. LiquidSparkMarketing.com info@liquidsparkmarketing.com O:828-488-3420/ M:828-736-1695