Not Your Typical Tourism "What Tourism Destination Can Mean for Your Business"

An area’s tourism sector is a reflection of its quality of life, which has become an increasingly important element in the site selection process. Learn what a “tourist destination” can mean for your business.

By Rachel Duran

Business Expansion Journal

(Many thanks to Tom Rolfstad for passing this along.- Russ)

A scenic location full of cultural amenities and events does more than enhance an area’s tourism sector. It also promotes the quality of life in an area.

Take the example of an Iowa businessman who is looking to start a branch location in another state. He says the next place he takes his business, and obviously there are business factors that come into play, will not be a place that does not provide recreational and cultural amenities for his employees and their families.

“In terms of site location, the quality of life amenities are not the first thing folks look at when they are looking to locate a business or industry,” says Teri Goodman, development director, National Mississippi River Museum and Aquarium in Dubuque, Iowa. “But we know there is no amount of cash that can make a poor site selection decision into a good decision.”

Goodman says the Dubuque area is ensuring it features the recreational and cultural amenities that make a place attractive and worthwhile to live in, particularly to younger workers.

“Iowa loses 9,000 young people annually,” Goodman says. “So it is important for all of us in Iowa and the Midwest to pay attention to our communities and make them livable.”

Consider what Dubuque has done with a $60 million investment for the 60,000-square-foot National Mississippi River Museum and Aquarium. The facility is the only national interpretative center for the entire Mississippi River. The facility also explores environmental history, such as the impact of human choices, on the river.

As the museum was planning its expansion, Dubuque was also looking to add five amenities to its quality-of-life portfolio. The efforts by the city and the museum were combined under the America’s River project. All totaled, $188 million was raised in five years: $46 million from the state of Iowa, $15 million from the federal government and the rest from private funds.

In addition to the museum, Dubuque now has revitalized its riverfront with a new riverwalk, boat docks, an outdoor amphitheater, a landing for the Delta Queen Steamboat and a harbor walk, which links to the Heritage Trail. A $40 million private investment was put up for hotel and waterpark.

Dubuque still has 45 acres available for riverfront development, which is located at the inside of the peninsula.

Shasta County, Calif., has enhanced the climate around the Sacramento River with the 300-acre interpretive Turtle Bay Exploration Park, located on both banks of the river. The Turtle Bay Exploration Park tells the story of the region and its people through wildlife exhibits, gardens and trails and a 34,000-square-foot museum. Trails unify the museum experiences, which include the glass-decked Sundial Pedestrian Bridge. The $54 million Turtle Bay Exploration Park is fully funded through a variety of foundation, government, corporate and private funds.

The museum, arboretum and restaurant are open at Turtle Bay at this time. The Sundial Bridge will open on July 4.

In Mississippi, the state recently located the Atlanta Braves Double A team to Jackson on a 20-year commitment. “When we meet with the team’s company officials we shared the quality of life in Jackson and how the players and management’s salaries will affect our town and community,” says Craig Ray, director of the Mississippi Development Authority’s Division of Tourism Development. “We worked with the local economic development group to discover how we could help bring the team to Jackson by building a stadium, promoting the games and filling the stands.”

In Shasta County, Redding was scheduled to open the Redding Big League Dreams Sports Park in June, which is being built by Big League Dreams. The sports park will attract youth and adult softball and baseball tournament teams from across the country. It will also include a multi-sport covered sports pavilion and beach volleyball courts. Phase II will add five soccer fields.

The sports park is the result of efforts by two citizen committees and the Redding City Council. Funding for the project came from $10 million in state grants, $3 million in redevelopment funds, and $2.65 million from the city’s general fund and surplus property sales.

In Hamilton County, Fla., two racing tracks enhance the tourism climate, which is a major part of the area’s economic development. The county is located on Interstate 75, near the Georgia border. The North Florida Motorsports Park in Jennings is a motorcycle race track. There is also a go-kart race track in area. Additionally, Hamilton County will open a jai alai fronton on July 4, 2005. The county will see a horse race track open in 2007, which will be located near the jai alai fronton, near U.S. Highway 129 and Interstate 75.

“Communities have to offer that cultural layer, art museums, science centers, history museums, etcetera,” Goodman says. “We are building on the traditional values of the state of Iowa, conservation and land stewardship, the value of the environment and the value of education as we are a leading state in education.”

Entrepreneurial Meccas

Education has also been a drawing point for Watauga County, N.C., which is a tourist destination located in the Blue Ridge Mountains, where Grandfather Mountain is the area’s most noteworthy attraction. The area has been voted a top stop in the Blue Ridge Mountains. It features skiing, cycling and bouldering opportunities, as well as Appalachian culture and heritage and bluegrass festivals.

“We are also home to Appalachia State University, which has 13,500 students,” says Mike Wagoner, president, Boone Chamber of Commerce. “So it is a combination tourism market and college town, which sets us apart from many locales.”

“The university’s presence hastened the arrival of broadband services,” says Joe Furman, acting director, Watauga County Office of Economic Development. “The university is such an asset, especially to entrepreneurs in our area in terms of getting advice, training and recruiting. Beyond that, the culture opportunities the university provides would not be typically found in a rural county.”

Wagoner says the towns of Boone and Blowing Rock have attracted entrepreneurs who are interested in the life style advantages and the outdoor opportunities found in the county. “These people can put their businesses anywhere but come here because there is elbow room and they have the quality of life advantages that we offer because of our proximity to mountains and rivers.”

Wagoner adds that Watauga County is open to bringing in technology-based companies. Its catch phrase is “Bring Your Business to Higher Ground.” “At the university we have a strong program at the business school in entrepreneurial studies,” he says. There is also a strong computer technology and GIS department at the university.

“Beyond that, we have the Appalachian Regional Development Institute that makes itself available for applied research and public service in the community,” Furman adds. A branch of Caldwell Community College and Technical Institute is located in the area, which features a small business center that works with entrepreneurs.

Also working in Watauga County’s favor is that it is growing as a financial center and health care center, which is important to the retirees and second-home residents in the county.

“We have attracted a lot of retirees and second home people that come here to enjoy the vistas and get away from the summer heat in the Piedmont region,” Wagoner says. “That has brought in people of affluence and we have been able to capitalize on their investment.”

In West Virginia, economic development officials also note the link between its tourist destinations and second and even third-home builders. “The state park system is an attractive destination for people to come and build these homes,” says Alex McLaughlin, director, industrial development division, West Virginia Development Office. He says Snow Shoe, a leading ski resort in the state, has seen a lot of housing development associated with it. In addition, on the state’s eastern border, which is in proximity to Washington, D.C., a number of second and retiree homes are being built as well. “We offer beautiful locations and good land values,” McLaughlin says.

Funding the Tourism Sector

Companies will find they are able to capitalize on tourism-related incentive programs to finance their ventures. West Virginia passed legislation this year that created a tax credit for destination-oriented tourism projects that allow companies to use portions of the sales tax for projects to fund infrastructure and other capital expenditures, such as a ski resort, McLaughlin says.

He says the state features a growing ski industry, white-water rafting and golfing opportunities, among others. The nearly $40 million Pete Dye Golf and Sporting Club will consist of nearly 400 second and third homes on 1,400 acres in Harrison County. The club also consists of an equestrian center and gun club, among other amenities. The golf club is to host a new nationwide tour event for the PGA in July.

In Hamilton County, Fla., the tourist development council has $15,000 to $25,000 to use for tourism-related grants. “The chamber is currently applying for a revolving loan fund from the USDA to help lend money to small businesses to help them get started or to upgrade their businesses,” says Bob Poor, director of the Office of Economic Development and the Hamilton County Tourist Development Council.

Poor says the renovations being conducted at Heritage Village, a turn of the century village, received a $250,000 special category historical grant. The first phase will feature the renovation of the cotton gin and shotgun houses. The second phase will feature the layout of roads in the village, the addition of more buildings and fencing in the property with split rail fencing.

With constant improvements to the tourism sector and the financing to support it, it is clear the tourism sector of today, with its outdoor and cultural amenities, is one of the winning pieces of the site selection puzzle. Goodman says it often comes down to the quality of life and related amenities that makes or breaks a decision.

“When a site consultant is looking at a community, clearly these quality of life amenities are not the first thing they look at,” Goodman notes. “I do believe that conscientious business leaders are looking at places that are livable, where they can raise a family, with good schools, and where there are cultural and outdoor amenities.”

For complete details on the organizations featured in this article visit:

Boone (N.C.) Chamber of Commerce, http://www.boonechamber.com

Economic Development Corporation of Shasta County (Calif.), http://www.shastaedc.org

Hamilton County (Fla.) Development Authority and Tourist Development Council, http://www.hamiltoncountyflorida.com

Mississippi Development Authority, http://www.mississippi.org

National Mississippi River Museum and Aquarium (Dubuque, Iowa), http://www.rivermuseum.com

Watauga County (N.C.) Office of Economic Development, http://www.wataugaedc.org