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Northern New Mexico Cultural Corridor:
Working Together to Strengthen our Regional Economy
Business PlanSpring 2012
Global Center for Cultural Entrepreneurship
EXECUTIVE SUMMARYEXECUTIVE SUMMARY
“We must all hang together, or
assuredly we shall all hang
separately.”
Benjamin Franklin
Corridor Benefits to Par/cipa/ng Communi/esPromotes understanding of our unique communities and culturesAttracts people to our real estate marketDraws new businesses to the regionPromotes cultural activities like Pueblo Feast Days, Las Posadas, and Gallery ToursPromotes authentic experiences in cooking classes, adobe building, jewelry-making, tinworkPromotes recreational opportunities that connect people to our natural heritagePromotes visits to Native American communities and informs visitors about being guests
MARKET OPPORTUNITYMARKET OPPORTUNITY
Tourism in New Mexico
New Mexico
Tourism Budget:
$2.5 million
Travelers:
9 million
ROI:
$5.5 billion
Growth Poten;al & Industry Trends
Tourism is a criKcal economic driver for the state. Tourism-‐related spending annually contributes $5.5B to the economy, including $770million in tax receipts. Unfortunately, our market share has been in decline since 2008. Currently, New Mexico only captures 1% of the domesKc travel market, with approximately 32% of visitors just passing through (vs. 16% in our Mountain States). New Mexico ranks 36th in the naKon for tourism and average trip spending in New Mexico is 25% less than the naKonal average, and conKnues to decline.
Our brand and our ability to aZract visitors suffer from low awareness and damaging misconcepKons -‐-‐ which are eroding our market share. This challenge is worsened by a current lack of cohesive markeKng and branding. However, despite this bleak outlook, opportuniKes abide. By developing a cooperaKve, inclusive, regional marke/ng strategy for the northern area of our state, we can begin to regain market share.
According to the US Department of Commerce, internaKonal travel to the United States was projected to grow by 6% in 2011, this is on top of a 9% increase in arrivals in 2010. Similarly, the U.S Travel AssociaKon projected that domesKc travel would increase by an average of 3.3% annually starKng in 2010. To demonstrate the growing significance of geotourism, we can look at the growth rates of it's components. Geotourism consists of ecotourism, adventure tourism, and cultural tourism. According to the World Tourism OrganizaKon, the ecotourism industry is projected to grow by 4.1% annually for at least the next decade. Similarly, data from George Washington University demonstrate that adventure tourism is acceleraKng out of the recession with an esKmated growth rate of 17% annually. Finally, cultural tourism is already well established and considered one of the naKon's most dynamic economic sectors, with 78% of US leisure travelers parKcipaKng in “cultural and heritage acKviKes” while on travel. One specific segment of leisure tourists consKtute an emerging and lucraKve group of consumers: geotravelers.
THE GEOTRAVELERTHE GEOTRAVELER
A Growing Market Opportunity
Travel More, Spend More, Stay Longer
Geotravelers are a growing segment of the US, Canadian, and European tourist market. Typically earning over $60,000 per capita annually, holding advanced or college degrees, and traveling on average 20% morethan non-‐geotravelers, this segment of the tourism market prefers“tourism that sustains or enhances the geographical character of a place—its environment, culture, aestheKcs, heritage, and the well-‐being of its residents.” Notably, geotravelers, as compared to eco-‐travelers, prefer working landscapes that integrate local customs and tradiKons of the people who live in that place.
Approximately 55million Americans are categorized as geotravelers. Further segmenKng this market, we see that some geotravelers lean towards eco-‐acKviKes while others lean toward heritage and culture acKviKes. Recent research shows that geotravelers who lean toward culture and heritage acKviKes are more likely to stay in locally-‐owned lodging, shop for local arts & crags, eat local foods, be female, and earn between $60-‐90,000 annually. These travelers spend more on trips ($994 on average) than the average ($611) and enjoy culinary acKviKes including sampling arKsan food and wine, aZending food and wine fesKvals and unique dining experiences. Furthermore of geotravelers:• 65% seek travel experiences where the “desKnaKon, its buildings and surroundings have retained their historic character”;• 58% want their travel to be educaKonal and they make an effort to explore and learn about the local arts;• 45% spend more money on cultural/heritage acKviKes than on other acKviKes while on a trip• 37% would pay more for lodging that reflects the cultural/heritage desKnaKon they visit• 57% of these travelers use websites as their travel informaKon source;• Cultural and heritage travelers are acKve online;• 67% use Google, and 42% use Facebook.
MARKET STRATEGYMARKET STRATEGY
Compe;;ve Analysis
Colorado Tourism
Budget:
$8.7 million
Travelers:
55 million
ROI:
$10.5 billion
There is strong compeKKon in the domesKc geotourism market. Therefore, New Mexico must target specific geotraveler segments and highlight its unique and comparaKvely abundant heritage and cultural features to gain market share and a defensible compeKKve posiKon. The compeKKon in this geotraveler space includes other culturally and environmentally rich sites in nearby states. The following states pose strong compeKKon: Texas, Colorado, California, Utah, Wyoming, and Arizona. Arizona and Colorado are idenKfied as the most direct compeKKon.
Arizona and Colorado pose the most direct challenge to New Mexico regarding increasing our market share of out-‐of-‐state geotravelers. Colorado is a direct compeKtor to New Mexico, it has increasingly shiged its brand posiKon toward geotourism and ecotourism. While travelers idenKfy its natural wonders as the key draw, Colorado has a wide range of cultural acKviKes and has begun to market these more and more. AddiKonal offerings include Aspen, Denver, Vail, sport franchises, microbreweries, and world-‐class outdoors acKviKes. Rocky Mountain NaKonal Park is a key draw.
Tourism in Colorado was at record levels in 2010, 55.1 million people visited-‐-‐a 6.1% increase from 2009. While 12 million visitors were solely interested in skiing, 30% visited specifically for historical sites, 20% sought cultural experiences. There is growing interest in Colorado's breadth of acKviKes beyond outdoor adventures. In 2010, visitors to Colorado spent $10.5 billion in the state. Colorado's success in markeKng to geotravelers was due to the breadth of their 2010 markeKng campaign which included broadcast elements (TV and radio), print (mulKple newspaper and magazine ads), as well as internet banner ads.
MARKET STRATEGYMARKET STRATEGY
Arizona Tourism
Budget:
$3.5 million
Travelers:
37 million
ROI:
$19 billion
Compe;;ve Advantages
andPosi;oning
Arizona, known as the “Grand Canyon State” is the other direct compeKKon for New Mexico. With a vast number of natural sites and interesKng cultural acKviKes, the state has been able to aZract geotravelers to visit the Grand Canyon, ScoZsdale, Flagstaff, and Tucson. The state is divided into five different tourisKc regions each one promoKng its very unique features to travelers. These regions are: Northern Arizona, North Central Arizona, Phoenix and Central Arizona, Tucson and Southern Arizona, and Arizona’s West Coast.
Arizona recorded 37 million visitors to the state in 2010 and its return on investment (ROI) regarding promoKng tourism is outstanding. For every $1 the state invests in promoKng tourism the returns are of $8 to the state general fund. Out of state tourists are vital to travel spending in Arizona: they contribute 80% of this total. In 2007, travelers spent $19.3 billion in the state and this translated into almost $53 million being pumped directly into the economy every day. The ROI regarding markeKng efforts reflect that for every $1 the Arizona Office of Tourism spends on markeKng, the state generates we generate $180 in direct visitor spending and $14.95 in state and local taxes.
A recent market analysis shows that “strong geotravelers” preference cultural and heritage experiences more than eco-‐experiences, while sKll valuing both. New Mexico offers the greatest array of authenKc cultural and heritage experiences for geotravelers as compared to neighboring states. AddiKonally, strong geotravelers prefer to buy local, stay at local establishments, experience local culture, and eat local foods. This is our core compe//ve advantage.
Scale of Compe//veness for Geotravelers' ExperiencesScale of Compe//veness for Geotravelers' ExperiencesScale of Compe//veness for Geotravelers' ExperiencesScale of Compe//veness for Geotravelers' ExperiencesScale of Compe//veness for Geotravelers' Experiences
Amazing Natural Beauty
Amazing Natural Beauty
Colorado
Amazing Natural Beauty
ArizonaAmazing Natural Beauty
Utah New MexicoAmazing Natural Beauty Texas
Amazing Natural Beauty
Amazing Natural Beauty
AuthenKc Cultural ExperiencesAuthenKc Cultural ExperiencesAuthenKc Cultural ExperiencesAuthenKc Cultural Experiences
MARKET STRATEGYMARKET STRATEGY
Brand Differen;a;on
Scaling Market Reach
Through pooling our markeKng resources and assets, northern New Mexico will beZer be able to compete against the significant tourism markeKng efforts of surrounding states. Combining our region’s offerings will bring a wide and delighqul array of cultural, heritage, and eco-‐acKviKes to geotravelers.
A recent survey on tourist impressions revealed a few of New Mexico's strengths as compared to Colorado and Arizona. New Mexico is known for our NaKve American cultures, historic sites, architecture, unique local cuisine and museums. Finally, New Mexico is known for our interesKng local people and sites that are not overly-‐crowded with tourists. In short, New Mexico has broad appeal and offers an authenKc experience while also successfully catering to upscale cultural tourists.
To effecKvely capture market share in the geotraveler market, New Mexico must build on posiKve percepKons and differenKate itself from the direct compeKKon, accentuaKng our more robust array of culture and heritage acKviKes, fesKvals, markets, historic sites, rural towns, and natural wonders.
GCCE will hire a leading brand firm to build a cohesive branding strategy that encompasses the region’s offerings, and triggers customer interest. Furthermore, GCCE will incorporate technologies that convert this iniKal interest into actual bookings. Highlighted in the brand will be travellers’ opportuniKes to engage in local cultural events, acKviKes, workshops, educaKonal experiences, and shopping.
Over the course of five years, the Corridor markeKng strategy will expand to reach naKonal and internaKonal customers. Generally, markeKng efforts will target professional couples ranging from an age of 38 to 58 from the (Year 1) neighboring states, (Year 2) select naKonal markets, (Year 3) select internaKonal markets.
“Cultural and heritage travelers seek authentic destinations with historic character as well as educational experiences in their travels.”
MARKET STRATEGYMARKET STRATEGY
Market Entry
Technology
Market Intelligence
The primary venues for adverKsing the Corridor will be online. During the first two years all adverKsing will be online through partnerships with established and emerging brands/organizaKons targeKng our same target customer: strong geotravelers.
With over 20% of travelers choosing travel designaKons via the Internet, the Corridor will rely heavily on travel blogs, Google Ads, and social media. Travelers increasingly use social media for travel planning. In 2010, 52% of all American leisure travelers reported using social media as a primary planning tool for travel. This number is expanding. Facebook was cited as the most popular site to post and review travel related content such as photos and recommendaKons. According to the Mandala survey, the two most preferred travel planning websites were Travelocity and Expedia. In conjuncKon with this growth in social media usage is the growing popularity of mobile phone applicaKons.
Our budget will be strong enough to have a frequent and dynamic presence in these targeted media. As the growth of booking online and via Smartphones increases, we will be there. The targeted traveler is accustomed to using the Internet and Smartphones to search for their next trip and to book their lodging, specialized experiences, restaurant reservaKons, etc
The website will our dynamic hub for social media, PR and digital media campaigns. The new site is key to selling the corridor and all that it offers. It is important that all members promote the Cultural Corridor and that we promote members from the site as well as social media, PR and digital media. The Corridor website will garner data from visitors around the region, naKon, and globe. The data will be used to detect new market opportuniKes, new brand posiKoning opportuniKes, and improved communicaKon paZerns with exisKng and potenKal customers. Data sets and analyKcal reports will be made available to Members and will be tailored to their needs and membership levels.
Through gathering, analyzing, and distribuKng this customer and market intelligence we will, as a region, become expert in delighKng our visitors to our region. We will also adapt to the market more nimbly and become more innovaKve.
BUSINESS MODELBUSINESS MODEL
Memberships
Board and Leadership Model
ROI
The Corridor will build revenues through memberships for parKcipaKng ventures in the Corridor region and earned income strategies.
Members will receive services commensurate with their level of Membership. Services will include:• adverKsing on website and mobile technologies• targeted adverKsing based on Corridor website analyKcs• data on the tourism market• web analyKcs compiled by leading analyKcs firm• technical assistance and tools for business development
The Corridor will be led by a Board of Directors, formed of Membership leaders and GCCE leadership. GCCE will fiscally sponsor the fledgling Corridor venture and will apply for 501c3 status during the first 6 months. The Board of Directors will idenKfy key strategic iniKaKves, partners, and prioriKes. The Board will also approve a defined Return on Investment tool and set of performance measures that use industry standards set by Longwoods, or similar enKKes.
Corridor parKcipaKng communiKes will reap the benefits of this combined markeKng effort through gaining greater presence in tourism markets, and thus more visitors, who stay longer, spend more, and return more frequently. The Corridor Members will see addiKonal benefits in adverKsing spots, market intelligence, input on strategy and technical assistance and business development tools.
Membership Model
MEDIA PLAN AND BUDGETMEDIA PLAN AND BUDGET
Pre-‐Launch
The Cultural Corridor Board of
Directors
“Adventures Steeped in Culture”
Building the Cultural Corridor brand starts with dedicated work for six months before we are ready to launch. Assuming we have regional buy in and the funds are accumulaKng, we will launch by year-‐end-‐-‐if not before.
During the first six months, the Corridor will: • build a Leadership Board;• begin to establish a legal enKty;• create the Corridor brand;• engage product development leaders;• create a leading-‐edge website that engages geotravelers;• build core Membership;• secure strategic partnerships that will leverage our resources.
The Corridor Board of Directors will be a working board, familiar with desKnaKon markeKng and the advantages of new media available to us to build our brand. We will build a Board with regional knowledge and representaKon, as well as a diversity of skills. GCCE will fiscally sponsor the Corridor and will shepherd the Corridor through the 501c3 process.
The creaKve work, branding, and website are our upfront capital costs. We are fortunate that major infrastructure work and capital projects in the region are not required now. Our branding work begins with finding an agency that is a leader in developing our brand, including the creaKve elements and the name and key words to be used to describe ourselves. We have market research budgeted as well as product development.
Product development relates to establishing trips, paths, packages, and iKneraries for the visitor, e.g. Back Roads, Local Eateries, Vineyard Trails, etc. We will partner with Longwoods, if permiZed by NM State Tourism, to add on our research in areas that coincide . We will iniKate research where we need specialized research. Social media “voice” will be established as well as PR target audiences so that we are integrated and focused on moving markets here within our demographic.
New Mexico State Tourism has rooted its markeKng in the theme, “Adventures Steeped in Culture”. This is a perfect fit for the Cultural Corridor. We hope to be working closely with the markeKng team at the Department of Tourism.
Ager six months, we ar ready to hit the digital airwaves.
CAPITAL COSTS AND BUDGET NARRATIVECAPITAL COSTS AND BUDGET NARRATIVE
Year 1: The Launch
Mobile Media
We will begin focusing on states in regional markets, those where visitors can fly in direct on Southwest Airlines (they own 55% of the market), American and Delta. Also, we will focus our markets where our potenKal visitors drive in, which is ogen an overlap. We must be a strong presence in our Corridor portal visitor centers. Of course, social media and mobile media (Smartphones) broadcast naKonal and internaKonally. Digital media will be targeted to online publicaKons, blogs, magazines, travel sites, etc. where the geotraveler is subscribing and reading, we can go in there with our ads with our own videos. . We will contract an agency to manage this strategy with oversight. We must have the best people working for us.
Mobile media calls for invesKng in and incenKvizing the development of Apps and HTML 5 (when pracKcal) tools that help people navigate their local experiences, reservaKons, checking the “best of”. From skiing opKons to vineyard tours, from Opera to great restaurants, we want to be a “trip advisor” and we want the visitor’s feedback about their experiences. We must be a friendly, easy desKnaKon to enjoy. We will contract the service of managing our mobile media as there are specialists in this field of markeKng communicaKons and provide the oversight.
Social media is a powerful tool, including well-‐known tools like Facebook, TwiZer, and LinkedIn, and newer tools using geospaKal data like FourSquare. We will use established tools and implement newer tools as they are adopted by consumers. It is important that we develop a “voice” that is consistent across all social media. We will have a social media strategy that encourages growth in followers. We can use the tool to inspire visitors and at Kmes to promote packages and other markeKng strategies to promote visitaKon, especially in shoulder and low visitaKon seasons. A recent example is the great skiing we have this season and the need to quickly tell the world. We will contract out this work to a company that knows how to build traffic in social media and cooperaKve with all of our partners, mutual promoKng. We will control the oversight.
CAPITAL COSTS AND BUDGET NARRATIVECAPITAL COSTS AND BUDGET NARRATIVE
Video Produc;on
FAM Tours
Year 2 – 5
Video producKon can be used on You Tube, Vimeo, our website, and in our digital media. These videos must be produced every year with fresh material. The strategy is to illustrate our great opportuniKes to enjoy our culture, farms, vineyards, outdoor acKviKes, etc. They must have high quality producKon qualiKes and someKmes with humor, someKmes with performances, someKmes catching trout on the Chama. The variety and quality is key. We have endless material to offer our audiences.
We will have tradiKonal print materials for in-‐region visitors as well as in the markets where we can influence the visitor.
Out-‐of-‐home markeKng, including the use of billboards, airport signs, and other awareness building tools will be tested and developed as we understand effecKve targeKng with these tools.
FAM tours are being done by many organizaKons in the region. We will partner and contribute towards costs in order to promote the region as a whole.
Travel by the Cultural Corridor can be to trade shows, associaKon meeKngs, wherever we feel we can make a difference.
The strategy is not to build up a staff, but use the most effecKve contractors in their field. We will have monthly meeKngs with the contractors to assure that we are always in a synergisKc method and our strategies are on point.
We will have learned much from our first year. Reviewing the results by the Board of Directors will undoubtedly call for adjustments and then moving forward. It will take us 5 years to build our brand naKonally and internaKonally. Technology is changing our world of markeKng and we must aware of the changes.
We will be successful.
Annual BudgetAnnual BudgetAnnual BudgetAnnual BudgetAnnual BudgetAnnual BudgetAnnual Budget
1st 6 Months Year 1 Year 2 Year 3 Year 4 Year 5
TOTALS $1,000,000 $1,500,000 $2,000,000 $2,250,000 $2,500,000
CreaKve and Branding $100,000 $10,000 $10,000 $10,000 $10,000 $10,000
Website $75,000 $25,000 $25,000 $25,000 $25,000 $25,000
Product Development $25,000 $25,000 $50,000 $50,000 $50,000 $50,000
Legal $10,000 $10,000 $9,000 $10,000 $10,000 $10,000
Sales Commissions $27,000 $27,000 $175,000 $200,000 $250,000 $275,000
Equipment $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
Rent $3,000 $6,000 $6,000 $6,000 $6,000 $6,000
AccounKng and Audit $30,000 $30,000 $50,000 $75,000 $100,000 $100,000
Board MeeKngs $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
Management Oversight $75,000 $75,000 $100,000 $125,000 $150,000 $150,000
Market Research $25,000 $75,000 $50,000 $75,000 $75,000 $75,000
Digital Media $265,000 $405,000 $586,500 $672,000 $784,500
Social Media $112,500 $150,000 $150,000 $150,000 $150,000
Videos $57,000 $50,000 $50,000 $50,000 $50,000
PR $150,000 $150,000 $200,000 $200,000 $200,000
Print $50,000 $75,000 $75,000 $75,000 $75,000
Mobile Media $37,500 $75,000 $112,500 $150,000 $150,000
Out of Home $50,000 $75,000 $75,000 $75,000
FAM Travel $25,000 $25,000 $25,000 $25,000 $25,000
Travel $25,000 $25,000 $25,000 $25,000 $25,000
Profit $105,000 $132,000 $244,500
$390,000 $1,000,000 $1,500,000 $2,000,000 $2,250,000 $2,500,000
GCCE gratefully acknowledges the leadership and investment of the following organizaBons.
