ERA No: 17793 – Fort Monroe Tourism, Marketing and Development AnalysisSlide 1 Fort Monroe Tourism...

ERA No: 17793 – Fort Monroe Tourism, Marketing and Development Analysis

Slide 1

Fort Monroe Tourism Feasibility, Marketing and Development Analysis

May 28, 2008


Slide 2

I. Tourism Market Overview

II. Marketing Strategy

III. Development Plan Options

IV. Questions and Discussion

Agenda


Slide 3

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


Slide 4

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 Month (2007)

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

J F M A M J J A S O N D

Rec

reat

ion V

isits Historic Site or Battle Field

Military Park

National Monument

National Park

Other NPS

Wild/Wilderness Area

Total All Sites


Slide 5

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


Slide 6

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

Tourism Market Potential


Slide 7





Agenda


Slide 8

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

Marketing Strategy Components


Slide 9

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


Slide 10

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


Slide 11

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


Slide 12





Agenda


Slide 13

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 for- profit/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


Slide 14

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


Slide 15

Questions and Discussion

ERA No: 17793 – Fort Monroe Tourism, Marketing and Development AnalysisSlide 1 Fort Monroe Tourism...

Documents

Transcript of ERA No: 17793 – Fort Monroe Tourism, Marketing and Development AnalysisSlide 1 Fort Monroe Tourism...