The Visitor Economy

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Image (c):Planet for Kids
Nova Scotia Innovation Days
29 April 2014
with Dr. Nancy Arsenault, Tourism Cafe Canada
(c) Dr. Nancy Arsenault (2014).
Thank-you
Nova Scotia
(ERDT & NSTA)
for having me back!
Louisbourg &
Cape Breton
Up With
People
GMIST
Edgies!
(c) Dr. Nancy Arsenault (2014).
Text
Image: www.idtec.com
We work in the best
industry in the world!
(c) Dr. Nancy Arsenault (2014).
Full of Passionate People!
(c) Dr. Nancy Arsenault (2014).
And it doesnt hurt that ...
16 million visitors 1.8 million visitors
614,000 jobs 24,000 jobs
157,000 businesses $800M income to NS families
Enhances our reputation when visitors have an amazing experience! Enhances our reputation when visitors have an amazing experience!
(c) Dr. Nancy Arsenault (2014).
We are Revenue Positive to
Government!
An investment in tourism
is an investment in a healthy economy.
$84 Billion
economic activity
21.3 B Tax
benets
$2 Billion
industry!
$173M tax
revenue
(c) Dr. Nancy Arsenault (2014).
Not to mention the Community Pride
Text
Tourism Business of the Year 2013
Widden Park Campground, Antigonish
Community Service Award 2013
Delta Barrington & Halifax Hotel
Staff
Ambassador Award 2013
Fortress of Louisbourg Association
(c) Dr. Nancy Arsenault (2014).
But We Have Some Challenges
... but perhaps
inuence
Those we cant
control
(c) Dr. Nancy Arsenault (2014).
But theres a lot we can do!
If we choose
change!
Many Canadian companies choose to do business in the same markets theyve operated
in for years Working with familiar clients and markets is a comfortable option, and in the
short-term, it may reduce risk but over the long term, playing it safe can cause
companies to loose their edge.
Deloittes Passport To Growth (2013)
(c) Dr. Nancy Arsenault (2014).
Are We Our Biggest Enemy?
Image: success.com
(c) Dr. Nancy Arsenault (2014).
Your Neighbor isnt Your Competitor
3 to 5 words are!
Boutique, pet-friendly, accommodations, Halifax
18 Properties on Trip Advisor
18 on Pet Friendly Digs
34 on Expedia
...
(c) Dr. Nancy Arsenault (2014).
Two Visitor Centres in One Small Town
I dont understand why?
Do I have to visit both?
Will they be different? Tell
me something new?
Image: ishopeco.com
(c) Dr. Nancy Arsenault (2014).
Sorry I cant help you right now
Im lling out another
grant application for
funding.
Image: cdn.youthnet.org
(c) Dr. Nancy Arsenault (2014).
The Race to the Bottom
Think discount rather
than adding value

The Time is Now
The economic and population challenges we
now face in Nova Scotia, and dramatically so
in our rural regions, demand new vision,
innovative approaches, greater collaboration
and a greater willingness to take on the risks
associated with economic change and progress.
Ray Ivany (2014). Now or Never
(c) Dr. Nancy Arsenault (2014).
Minister, Michael Samson
Tourism is:
About people, the customer, their experience
A major economic driver - $2 billion!
Being recognized across all sectors of government as
important
Government and industry making the right
investments needed to grow.
Marketing will get them here, our hospitality and
experience will bring them back.
In his address to the provincial Visitor Servicing team 25 Apr 2014
(c) Dr. Nancy Arsenault (2014).
Yet the convincing others about
the value of tourism is tough
Everyones a traveller but
few understand how our
industry works ... even
some in our industry!
Image: latinbusiness.com
(c) Dr. Nancy Arsenault (2014).
Your CEO, Patrick Sullivan
We cant keep doing the same as we have for the
last 10 years
No silver bullet
Inspirational marketing
Discover, Freedom, Engagement
Increase the value, the revenue generated, the
length of stay
In his address to the provincial Visitor Servicing team 25 Apr 2014
(c) Dr. Nancy Arsenault (2014).
Have we put ourselves in too many boxes?
Marketing
V
isitor Services
Product D
evelopm
ent
Tra
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Federal
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Tourism
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(c) Dr. Nancy Arsenault (2014).
And lost sight of the customer?
Marketing
Visitor Services
Product D
evelopm
ent
Training
Research
Stuff!
Federal
Regional
M
unicipal
Provincial
Business
Tourism
H
otels
Restaurants
A
ttractions
Transportation
D
M
O
s
(c) Dr. Nancy Arsenault (2014).
Maybe its time to take a step back
Look at the bigger picture ... and dream
(c) Dr. Nancy Arsenault (2014).
(c) Dr. Nancy Arsenault (2014).
(c) Dr. Nancy Arsenault (2014).
Walk boldly
but carefully
(c) Dr. Nancy Arsenault (2014).
The E-Factor!

Visitor Excitement

Visitor Experience

Visitor Engagement

Visitor Economy
The Visitor is in the
Drivers Seat!
(c) Dr. Nancy Arsenault (2014).
An Opportunity to Truly Focus On
C
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The
next
competitive
battleground.
1. The Customer Experience
(c) Dr. Nancy Arsenault (2014).
A Great Customer Experience
The visitors experience is the cumulative impact of all
physical, emotional and practical encounters guests &
prospects have with companies and the destination.
Its travel thats

authentic,

memorable

engages the senses,

is inherently personal and

connects on physical,
emotional, spiritual,
intellectual, or social level.
Source: Nancy Arsenault (2004)
Experiential Travel
Free Wheeling Adventures
Seeing the sights is no
longer enough.
More than ever people
are travelling their
passions.
Joe Diaz, Afar Magazine
Investing in stories over infrastructure is:
Everyone has a story to tell
... more engaging
... more personal
... authentically yours
... make connections
... exible/dynamic
AND
... quicker to market
... attracts media
... can charge more
... builds HR capacity
... less expensive
(c) Dr. Nancy Arsenault (2014).
But it begins with really knowing the VISITOR
Then focusing your thinking, investment approach
and product development and promotional
activities through the eyes of the traveller.

2. Compete on Value
Engage
the Senses
Local Flavor
Authentic
Connect with
Chefs,
Farmers
Vintners
(c) Dr. Nancy Arsenault (2014).
Canada MUST Compete on Value
Value is the
immunization factor.
When there is no
difference in value people
buy on price alone.
Competing on value allows you to create a
be different strategy that your competitors will have difculty
copying.
Roy Osing (2009). Be Different or Be Dead.
(c) Dr. Nancy Arsenault (2014).
Weve known this for a long time ...
Beggars Banquet, Louisbourg
Canada must develop niche products and services tailor-made to
match the unique characteristics of its diverse regions.
Deloittes Destination Canada: Are We Doing Enough (2007)
Solider for a Day, Halifax Citadel
www.ediblecanada.com
Edible Canada
Connecting with what people really want
... the chef & conversation!
Edible Canada, Vancouver, BC
www.ediblecanada.com
Food ingredients
(Commodities)
Culinary Artisan Store
(Goods)
Restaurant Dining
(Service)
Market Price
Premium Price
$40, $80,
$120 & $750
Competitive
Positioning
Pricing &
Prots
Low Volume
High Yield
High Volume
Low Yield
Greater
Differentiation,
Emotion, &
Engagement
No to Low
Differentiation,
Emotion, &
Engagement
Experiences!
Mains $24 - $33
Most $3 - $50
Group Size
2 to 8
People
Cost $40 pp
Cultural
Explorers
Foodies !
Group Size
8 to 12
People
Cost $750 pp
Targeting Niche
market foodies
who want to
experience the
west coast by
kayak

3. The Visitor Economy
Broader
than the
Tourism
Economy
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For businesses
For Visitors
For communities
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For businesses
For Visitors
For destinations
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For businesses
For Visitors
For communities/
government
For destinations
WOW guests, earn a living,
successful business
Memorable Experiences
Healthy Economy
Deliver on the brand promise
Encompasses everything that attracts visitors to a
destination and
makes a place special, distinctive
and is capable of
engendering pride and interest
in a place worth experiencing.
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Environment
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Product / Experience/
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Development
Marketing
Research
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Value
Creation
For businesses
For Visitors
For communities
For destinations
Truly Customer
Centric
(c) Nancy Arsenault (2011).
Inspired by Chris Voss (2003)
Continual
Innovation &
Investment
The Visitor Investment Cycle
Lead with the Visitor not the Function
Change
Management
Manage the
Visitor Lifecycle
Generate a
desire to return or
recommend
Design
memorable, engaging
visitor experiences
Value
Creation
Research
Increased visitation,
spend, length of stay,
prot, brand strength
Establish
relationships
Know your
customer &
markets
Product & People
Development
Deliver on
the product and
destination
experience
Invest in
the destination
experience
Promote,
advertise,
drive sales

Is Tourism at Risk?
Yes
If we
dont
embrace
the
opportunity
to invest
differently.
A Tale of Change
Driven by Reality
Synergy
Louisbourg
CHOOSING to
Raise the Bar on Value
and
Collaborating to Compete
1. Know their Visitor
1. Research

Knowing Louisbourgs visitor

AND Cape Bretons

Canadian Tourism Commission

Authentic
Experiencer
Cultural
Explorer
Cultural
History Buff
Engaging
Learning
Connecting
Unique
Differentiator
2. Invest Strategically
1. Collaboration: Synergy Louisbourg, DCBA, ECBC
2. People: GMIST Experiential Travel Training (Multi Partners)
3. Community: STEP Program (ACOA)
4. Product Development by Businesses:

Layering engagement

Personalizing the offers

Collaborating to compete as a community

3. Marketing - broader than
just promotions

Place - Louisbourg, not just the Fortress

Product - Layer the Community Experiences

Price - Differentiated options

People - Build community capacity

Promotions - Individual, partnered, destination marketing

Growing Steadily
Cannonier for a Day
Playing Hookey
Louisbourg Rocks
etc.
Its kind of exciting . We didnt realize that
people would respond to this so positively
and like these intimate ways of
experiencing the Fortress rather than just
walking around and bumping into costumed
stuff and watching a demonstration.

Provided focus for reorganizing the time without increasing

human resources

Improved shoulder season experience for guests

New model for revenue generating programs.

More choice and opportunities for visitors to experience the site.

Lester Marchand
Visitor Experience Manager
Fortress of Louisbourg Key Benets of Making the Shift
FOCUS ON:
$39.95/pp
1/2 hour dressing
2 hours dining
(c) Tourism Cafe Canada & Earth Rhythms (2014).
Market Price
Premium Price
Greater
Differentiation,
Emotion, &
Engagement
No to Low
Differentiation,
Emotion, &
Engagement
Land, Building, Tent
(Commodities)
Restaurant Dining
(Service)
Rooms, RV site
(Goods)
Low Volume
High Yield
High Volume
Low Yield
Competitive
Position
Pricing &
Prots
Point of View Suites, NS
http://www.louisbourgpointofview.com/ &
Beggars Banquet
(Experience)
Aligning with the Primary Demand Generator
... Becoming a Primary Demand Generator
www.thissh.info
(c) Dr. Nancy Arsenault (2014).
Your Nova Scotia Tourism Strategy
The creative challenge is to connect emotionally
with potential rst-time visitors.
With government and the tourism industry working
together to focus on the visitor, and Nova Scotians as our
ambassadors, we have the elements of tourism

It Takes Courage
Cuz
same ol
just
isnt
cutting it
(c) Dr. Nancy Arsenault (2014).
What if to get more visitors and $$
(c) Dr. Nancy Arsenault (2014).
All of us!
Government + Private Sector + Not-for Prots
(c) Dr. Nancy Arsenault (2014).
Revisit Your Business Model
Business Model
Generation
by
Osterwalder &
Pigneur
2009
(c) Dr. Nancy Arsenault (2014).
What if we challenged how we currently do business
Supply
Approach
8 Provincial VICs
Call Centres
57 Regional VICs
Provide Info
Only 20 - 43% stop at a VIC
Still A lot of people! 360,000 to 774,000 people!
(c) Dr. Nancy Arsenault (2014).
What if we put the Customer First
How would it change the conversation about Visitor Servicing?
A Customer Centric Approach
Who is the
customer
What type of
SERVICES do
they need?
Where could they get
it?
Enhanced
research
needed
General
Information
Locals Know Insights
Make a Reservation
Website, Print, Facebook,
TripAdvisor, YouTube,
Travel Agent ...
VIC, Tourism Business,
Gas Station, Kiosk,
Travelling Van,
Community
Ambassadors ...
How can we
add to the visitor
experience?
Physical &
Emotional?
Direct, Booking Engine,
Bookmark a URL
Washroom,
Charging Station,
Print Info ...
What do we
stop doing so
we can do new
things =
Conversation
Spaces!
How will we
measure the
ROI & ROE?
(c) Dr. Nancy Arsenault (2014).
Invest in Desired Outcomes Not Just Project
Goal:
New
Revenue
Generating
Visitor
Experiences
Operator A = $10K
+ Operator B = $10K
+ Operator C = $10K
(c) Dr. Nancy Arsenault (2014).
Shift from Funding to Investing
ROI & ROE
Set NEW metrics of Success
Amend Program Criteria
Eliminate March Madness
(c) Dr. Nancy Arsenault (2014).
Prioritize Infrastructure $
Truly Unique Infrastructure
Or Prioritize funding for
those those that have:
Infrastructure + Activity +
People/Programs
with multiple revenue streams
Direct or Partnered
Newark Ohio
(c) Dr. Nancy Arsenault (2014).
Visitor Services to Visitor Concierges
... trained and hired to be an active,
sales force
... create info feedback loops WITH
industry
... plan itineraries AND direct book with
operators
Woodlands Texas
Boise Idaho
Tono, BC
(c) Dr. Nancy Arsenault (2014).
Let Go of Control: Collaboration to Compete
Co-Innovate
Co-Create
Co-Author
Co-Design
Revenue Share
Staff Share
Shared Risk
(c) Dr. Nancy Arsenault (2014).
Helping Businesses Use Research
KNOW YOUR
VISITORS!
Graphic: tourismcafe.org
(c) Dr. Nancy Arsenault (2014).
And Understand ALL Sales Channels
#1: Direct to Consumer (No commissions)
#2: Indirect to Consumer (Commissions or net rates)
Tour Operator
(Travel Trade)
Intermediary
(Expedia,
booking.com ...)
Customer
Bookings
Packaged
Independent
Travel Bookings
Group Tour
Bookings
Packaging
Partner
Travel Agent
Invest in the 7 Ps! They are all Important!
Image: 2.bp.blogspot.com
You cant
drive new
business
with old
products
and
services!
$2 billion
$$ 3 billion
2 million
happy visitors
3 million
happy visitors
Nancy Arsenault
Managing Partner &
Experience Gal
nancy@tourismcafe.org
T: 250.589.2087
Thank-you!
tourismcafe.ca linkedin.com/in/nancyarsenault
twitter.com/NancyArsenault
facebook.com/tourismcafe
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