Transcript Great Lakes Maritime Museum

Fort Monroe
Tourism Feasibility, Marketing and Development Analysis
May 28, 2008
ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis
Slide 1
Agenda
I. Tourism Market Overview
II. Marketing Strategy
III. Development Plan Options
IV. Questions and Discussion
ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis
Slide 2
Tourism Market Overview
 There were 35 million visitors to Virginia
in 2007
 Virginia tourism has been in a no-growth
pattern since 2003
 Average party size is 1-2 persons, indicating
childless couples
 78% are overnight visitors
 57% utilized hotel/motel accommodations
 40% visitation was leisure-oriented
 Tourists to Hampton today are regional
• 25% visitors are from Virginia
• 12% visitors are from North Carolina
• 7% visitors are from Maryland
ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis
Slide 3
Cultural Attractions Overview
 11 historic sites and battlefields and 3
wildlife/wilderness National Parks within
200 miles of Fort Monroe
 2007 attendance was 7.8 million persons
 Colonial National Historic Park is the most
heavily visited
 Historic sites and battlefields have the highest
total visitation throughout the year
NPS Site Visitation by M onth (2007)
3,500,000
Recreation Visits
3,000,000
Historic Site or Battle Field
2,500,000
Military Park
National Monument
2,000,000
National Park
1,500,000
Other NPS
Wild/Wilderness Area
1,000,000
Total All Sites
500,000
J
F
M
A
M
J
J
ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis
A
S
O
N
Slide 4
D
Recreational Tourism Market
Overview
 There are 3,151 hotel rooms in The City of Hampton
 Average annual occupancy is 58.1%
• Annual occupancy declined from 66% in 2002 to 58% in 2007
 Average daily rate is $73.89; VA average is $93.
• Summer room revenue is nearly 4 times winter room revenue
 More than 1/3 annual stays were between June and
August
 There are 27 marinas within 30-minutes of Fort Monroe




50% maintain a wait-list
Demand exists for new facilities or 40 ft. + slips
Amenities and services are important attributes
Average Hampton Slip Rental Rates:
• Nightly: $1.35-1.85 per foot.
• Long-term: $6.25 to $8.00 per foot per month
• Semi-annual: $8.50 to $10 per foot per month.
 There are 14 RV spots at Fort Monroe today
 Average nightly rate: $24.50
 Most RV Parks offer swimming amenity, some charge
premium for views
 Facilities must be larger and offer more amenities to
demand premium rates; expansion potential exists
ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis
Slide 5
Tourism Market Potential
 Fort Monroe has strong tourism potential
 Historic significance attracts several submarkets
• Military Historians
• African American visitors
• Preservationists
 The site’s natural beauty, beach, recreation facilities,
marina, and campgrounds draw resort and recreation
visitors
 Projected Market
 Estimated visitation (conservative, stabilized year)
• 100,000-150,000 annual cultural attractions visitors
• 115,000-125,000 beach visitors
• 225,000-275,000 total visitors
 If a brand is obtainable, 130-150 room resort can be
supported
 Seasonality will mirror beach destinations
• High season will be three summer months
• A two month shoulder season will bring additional visitors
 Initially, regional visitors will be price sensitive
ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis
Slide 6
Agenda
I. Tourism Market Overview
II. Marketing Strategy
III. Development Plan Options
IV. Questions and Discussion
ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis
Slide 7
Marketing Strategy Components
 A cultural museum cluster anchored by a Civil War Museum
told from three perspectives will draw visitors and highlight
historic significance
 A link to “America’s historic triangle” will elevate Fort Monroe’s
visibility on a regional and national level
 The Fort Monroe hotel, if designed to evoke the historic Hygeia
Hotel and nationally branded will enhance the area’s national
exposure, draw recreational travelers and link to the area’s
history
 Recreational areas like the beach, marina and RV park can be
marketed and functioning in short order support and promote
Fort Monroe through its development
ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis
Slide 8
Marketing Strategy Timeline
 The Museum/Cultural/Historical cluster will likely
take 7-10 years to develop and facilities should
not be marketed until the year prior to opening
 Incremental/existing cultural attractions (i.e. a
retained Casemate museum, fort and historic
driving tour) can be marketed much earlier
 Recreational amenities can be marketed as soon
as improved facilities are completed
 Public beach, marina and RV park can be marketed
when available
 Incremental improvements and enhanced access
and parking will be necessary to attract visitors to
recreational components
ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis
Slide 9
Cultural Attraction Cooperative
Agreement
 Expand “History Triangle” to “America’s
History Quadrangle” to include Fort Monroe
 A regional/national/international joint marketing
agreement with Williamsburg, Yorktown and
Jamestown will require funding and strategy
compliance among four partners
 An agreement may take several years to craft
 Fort Monroe’s interpretive direction will heavily
influence the scope and benefit of this agreement
 Will broaden the appeal to cultural visitors
coming to the Hampton Roads Area
 Can extend the stay and spending of existing
visitors with enhanced attractions options and
marketing
ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis
Slide 10
Marketing Funding Sources and
Plan
 Each component should be included in a
comprehensive marketing program to promote Fort
Monroe as an addition to attractions in the Hampton
Roads region
 The VTC, foundations, special interest groups and
other donors could financially support programs and
facilities
 Educational programming and school trips costs
 Tourism marketing could be sourced through VTC
 Donors may sponsor special exhibits and events
 Exhibits and programming sponsorships
 Connections with area Universities can be beneficial
 Promote educational materials and research without
extensive funding required by FMFADA
 3-5% of overall operating budget should be dedicated
to marketing programs/costs
ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis
Slide 11
Agenda
I. Tourism Market Overview
II. Marketing Strategy
III. Development Plan Options
IV. Questions and Discussion
ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis
Slide 12
Development Plan
 Both a private (FMFADA) and public 501(c)(3)
non-profit will be needed to maximize
revenue/contributions
 Both organizations could manage non-profit and forprofit/commercial activities
 Costs and revenue allocations to be determined by
future phasing, capital investment requirements and
partner capacities
 Several management and development
options exist for both entities:





Concessions contract
Direct Management
National Park Service
Ground Lease
Sale
ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis
Slide 13
Development Options Pros/Cons
 Concessions Management


Pros: Highly experienced, efficient, well-funded, easily obtain necessary
financing, steady franchise fee income stream
Cons: Institutional, high overhead, will limit control, may be hesitant to take
on non-revenue producing components
 Direct Management


Pros: Maintain complete control, cohesive plan, strong revenue potential
Cons: Require high capital investment from FMFADA, may be difficult to
obtain financing/funding, lack experience in management of hospitality
operations, take on complete project risk
 Ground Lease


Pros: Steady rental income stream, Maintain ownership of sites, no capital
investment requirement, long-term value enhancement
Cons: Limited development control, can be difficult to finance, may lack
cohesion with introduction of sub-leasing and various management
agreements for separate components
 Direct Sale


Pros: Large immediate capital income to fund non-profit initiatives
Cons: Complete release of control, lack of cohesion, no long term income
potential; will not address long term guarantees for quality and protection
 National Park Service


Pros: Will ease linkage to “America’s Historic Triangle”; guarantees some
government funding, maintains site cohesion, guarantees site’s protection in
perpetuity; NPS is a ‘brand”
Cons: Bureaucratic, under-funded, restricted income potential, tax
exemption limits fiscal and economic benefits for surrounding community;
lease terms limit use of historic tax credits
ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis
Slide 14
Questions and Discussion
ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis
Slide 15