NORTH DAKOTA Travel Industry and Visitor Analysis. June Prepared for the

Transcription

1 NORTH DAKOTA Travel Industry and Visitor Analysis June 1995 Prepared for the North Dakota Tourism Department Liberty Memorial Building 604 East Boulevard Bismarck, ND (701) INTRA International Tourism and Resort Advisors Dean Runyan Associates 815 SW Second Avenue, #620 Portland, OR Tel: (503) Fax: (503) The Kelsh Company th Avenue SE Mercer Island, WA Tel: (206) Fax: (206)

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3 TABLE OF CONTENTS ACKNOWLEDGMENTS...iii SUMMARY...v I. INTRODUCTION AND METHODOLOGY...1 Introduction...1 Research Methodology...1 Limitations...2 II. VISITOR INDUSTRY OVERVIEW A Year of Floods, 1994 A Year of Recovery...5 Canadian Travel...7 Regional Outlook...9 III. DOMESTIC VISITOR PROFILE...13 Domestic Visitor Origin...15 Length of Stay and Regional Travel Patterns...20 Trip Characteristics...22 Accommodations...25 Travel Party Characteristics...27 Demographics...28 Activity Patterns and Ratings...31 Travel Information Sources...40 Visitor Expenditures...41 Recommendations for Improvement...45 IV. CANADIAN AND TOTAL VISITOR PROFILE...47 Travel Patterns...47 Purpose of Trip...49 Accommodations and Travel Party Characteristics...51 Demographic Characteristics...53 Activities and Satisfaction...55 Trip Planning...58 Expenditures...59 INTRA Page i

4 V. IMAGE OF NORTH DAKOTA AS A VISITOR DESTINATION...61 Sampling...61 Image Methodology...61 Stages of Traveler Decision-Making...62 Advertising...63 Image...63 Product Delivery...64 VI. GROUP TOUR MARKET ANALYSIS...93 Methodology...93 National Trends...93 The Group Tour Market in North Dakota...95 VII. ECONOMIC IMPACTS OF TRAVEL Travel Spending Current vs. Constant Dollars Employment and Payroll Local and State Tax Revenues Impact Revisions VIII. RECOMMENDATIONS Free and Independent Traveler (FIT) Market Group Tour Market APPENDICES APPENDIX A Sample Design Response Data Analysis APPENDIX B APPENDIX C Page ii INTRA

5 ACKNOWLEDGMENTS A number of individuals and organizations provided guidance and information with this project, without whose assistance the work would not have been possible. Bonnie Barsness, Market Development Director of the North Dakota Tourism Department, helped prepare the research plan, took responsibility for aspects of the survey data collection, and provided very useful recommendations throughout the project. Marion Houn, Motorcoach Marketing Director for the Department also was very helpful with data and recommendations regarding the motorcoach market portion of the project. Other individuals who provided valuable assistance include Kathryn Strombeck of the Office of the State Tax commissioner, Donna Schouweiller of the Department of Parks and Recreation, Wayne Freed of the U.S. Army Corps of Engineers and Tom Pederson, Chief of Job Service North Dakota. In addition we gathered information from a wide variety of travel and tourism attractions, marketing organizations, businesses and agencies, whom we want to thank again for the time and assistance they provided. Todd Smith of the Integrated Research Group of Fargo, North Dakota managed the intercept portion of the visitor survey and assisted with aspects of research design. INTRA Page iii

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7 SUMMARY This report provides the North Dakota Tourism Department and the State Legislature with vital marketing and economic information that will aid them in making decisions affecting the North Dakota tourism industry. There are four separate research elements: A review of the North Dakota visitor industry, including the organized tour industry A profile of current domestic and Canadian visitors to North Dakota An analysis of North Dakota s primary domestic market An analysis of 1993 and 1994 economic impacts associated with travel in North Dakota The project involved gathering data from a variety of sources within and outside North Dakota, interviewing a number of individuals regarding visitor industry characteristics and trends in the state, and preparing a number of technical analyses pertaining to visitors and the economic impacts generated by travel and tourism. Findings for a portion of the study are based on information from Longwoods International, consisting of profile and attitude data from a sample of 364 previous visitors to North Dakota who live in the eight-state region of Minnesota, Wisconsin, Iowa, Michigan, Illinois, Ohio, South Dakota and Montana. The profile of North Dakota domestic visitors makes use of a survey of travelers within the state conducted during the summer and fall of A total of 400 respondents were contacted through intercepts at locations throughout the state, and another 508 domestic visitors and 409 Canadians who responded to a mailed, self-administered survey of those who had traveled to the state during Trends Improved weather in 1994 brought water to many lakes, rivers and streams that had been suffering through drought conditions. While Canadian travel continued to decline there was an upturn in the financial situation of many Americans and U.S. residents helped fill the travel void left by the Canadians. Specific trends include: Day use was up at most state parks across North Dakota and campsite rentals were estimated to have increased 10%. Welcome center counts across the state declined to some degree in 1993 and again in 1994, although the decreases registered in 1994 were much lower than those experienced in Visitation to Theodore Roosevelt National Park was over 512,000 during 1994, a gain of over 30,000 visitors from Canadian visitation to North Dakota fell 17.3% from 859,700 visitors in 1992 to 710,900 in Travel spending by Canadians fell 20.2% during the same time period. Estimates of the Canadian visitor volume and travel spending in 1994 are not yet available. INTRA Page v

8 Domestic Visitor Travel Patterns Visitors from the U.S. represent the largest market for North Dakota. The following are some of their most important characteristics. Most domestic visitors are from the North Central Region of the U.S., in particular from the adjacent states of Minnesota, Montana and South Dakota. The largest proportion of domestic visitors are from Minnesota. Business travelers are most likely to be from nearby regions, whereas those passing through are most likely to be from more distant regions. North Dakota is the primary destination of about three-quarters of visitors. Overall, length of stay in North Dakota for overnight visitors is five nights. However more than half of visitors in all regions stay for one or two nights in the region; length of overnight stays are greatest in the East and North Central Regions. Most domestic travelers have visited North Dakota previously, and a high proportion stay overnight. Commercial lodging is the most common form of overnight visitor accommodations. Pleasure travelers are about equally likely to stay in commercial lodging as with friends or relatives. Most domestic travelers arrive by automobile or RV, while business travelers are most likely to travel by air. The most common travel party consists of two people. Over two-thirds do not include children. Domestic visitors staying in commercial lodging report the largest expenditures, most of which are for accommodations, food and retail purchases. Expenditures are highest for those combining business with pleasure. Domestic Visitor Demographics and Activity Patterns The majority of domestic visitors are over 45 years old. Business travelers are the youngest and those passing through are the oldest. About 45% of domestic visitors have a bachelors or graduate degree. The bulk of domestic visitors have family incomes under $75,000 per year and have no children at home. Sightseeing, visiting a museum or historic site, visiting with friends or relatives and eating out are the most popular domestic visitor activities. Among those destined primarily for North Dakota, visiting friends or relatives is the most common activity. Friends and relatives are particularly important connections for first-time visitors. The most common activity among first-time domestic visitors is visiting a museum or historic site. The single most commonly visited attraction for domestic visitors is Theodore Roosevelt National Park. The National Buffalo Museum and Fort Lincoln State Park are the next most popular attractions. Page vi INTRA

9 Events, in particular the Norsk Hostfest, Frost Fire Theater and the Medora Musical are rated highest in overall quality. Tourism Department Information Use Nearly one in five domestic visitors called the Tourism Department for travel information prior to their trip. Travelers often ask for information one or two months prior to their trip. Of those who received information from the Tourism Department, a high proportion felt the material was very helpful. Most domestic visitors were very satisfied with their trip to North Dakota. By far the most common recommendation is to leave North Dakota as it is. Canadian Visitor Profile Canadian visitors represent about one fifth of North Dakota visitors and are a particularly important part of the market in certain areas of the state. Canadian travelers most often visit the Lakes & Gardens but are also prominent in the Valley region. Six of seven Canadians stay overnight on their trip. Canadian length of stay averages six nights in North Dakota and is longest in the Lakes & Gardens region. Three quarters of Canadians stay in commercial lodging. Canadians are most often repeat visitors. Nearly all Canadians arrive by auto or RV. Canadian visitors travel to North Dakota primarily for pleasure, and nearly four in five are destined primarily to North Dakota. Canadian travel parties tend to be larger than those of domestic travelers. Canadian visitors are about the same average age as domestic visitors but are clustered more in the middle age categories. Fewer Canadians have a college education compared to domestic visitors. Nearly three in five Canadian visitors have children at home. Canadian visitors are particularly oriented to shopping and eating out. They visit friends or relatives relatively little and are not oriented to historic sites or museums or to natural attractions. Relatively few Canadians visit North Dakota attractions, although satisfaction with their visit is about the same as for domestic visitors. Few Canadians call the North Dakota Tourism Department prior to visiting. Canadians spend more than domestic visitors, particularly on shopping. Total travel expenditures for all visitors, Canadian and domestic combined, amounts to $ per party per day. INTRA Page vii

10 Image of North Dakota as a Visitor Destination The following are primary findings from a sample of residents in the five-state market area of the northern midwest: About one-third of the residents of the regional market indicate that North Dakota is a place I would really enjoy visiting. About 65% of Minnesota adults have visited North Dakota compared with 40% who indicate they would really enjoy visiting, indicating that the Minnesota market is fairly saturated. About 28% of the remaining regional market have visited North Dakota compared with 38% who indicate they would really enjoy visiting, indicating that potential still exists in these markets. The neighboring states of Minnesota, South Dakota and Montana are formidable competitors for regional pleasure travel. The Minnesota market is most aware of North Dakota s television advertising, followed by magazines, newspaper and radio advertising. Excitement, family atmosphere, unique culture and familiarity lead the list of attributes used by travelers when considering a destination. North Dakota does not score as well as neighboring states with respect to sightseeing and outdoor recreation attributes. There is relatively little difference between North Dakota and neighboring states in image with regard to price. North Dakota visitors develop good impressions of the state as a place to visit. North Dakota s product strengths among those who have visited the state include a safe place to travel, good for families, affordable, friendly people, beautiful scenery and good for viewing wildlife North Dakota s image strengths among those who have not visited the state are similar to its product strengths Group Tour Market The group tour market consists primarily of motorcoach travelers to and through North Dakota, many of whom are passing through on tours to other locations. The 1994 SEA database listed 70 tour operators offering 142 itineraries which included destinations and attractions in North Dakota. The majority of tours (both pass-through traffic and destination tours) occur during the peak summer months of June, July and August, and are provided by out-of-state tour operators. Tours traveling to and through North Dakota are coming mainly from states located in the midwest region of the United States and from Alberta and Manitoba in Canada. The most popular itineraries for tours traveling through North Dakota were to the Canadian Rockies, Alaska and the western United States and Canadian provinces. The average length of motorcoach tours which include North Dakota in their scheduled itinerary was 15 days, although most tours stayed less than two nights in North Dakota. Page viii INTRA

11 It is estimated that over 765 motorcoaches brought group tour travelers to North Dakota in More coaches (171) visited Medora than any other North Dakota destination. It is estimated that spending by group tour travelers in North Dakota generated approximately $2.7 million during Economic Impacts Travel spending in North Dakota increased at an average annual rate of 3.6% since 1991 and has reached an estimated $912.5 million in The expenditures of travelers in North Dakota generated $144.4 million in payroll and directly supported 16,600 full- and part-time jobs throughout the state in Both local and state government tax revenues increased annually from 1991 at an average rate of 15.6% and 3.0% respectively. Recommendations The following summarizes the recommendations that derive from the primary findings of the study: Expand on the Tourism Department s current Voice Information telephone system to facilitate visitors information access. Reduce advertising in Minnesota and focus on other regional markets. Focus advertising on the states most enticing attributes: excitement, family atmosphere and unique culture. Address the lack of familiarity by regional consumers about North Dakota as a visitor destination. Encourage more families and first-time visitors. Consider concentrating test promotional campaigns in two or three cities within North Dakota s close-in regional market. Concentrate on producing an effective group tour manual which includes stops in multiple areas of the state to be used by tour guides. The North Dakota Tourism Department should concentrate on developing a larger and/or more enticing selection of tourist attractions. INTRA Page ix

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13 I. INTRODUCTION AND METHODOLOGY Introduction This report, submitted by International Tourism and Resort Advisors (INTRA) to the North Dakota Tourism Department, is designed to provide the Tourism Department and the state legislature with vital marketing and economic information that will aid them in making decisions affecting the North Dakota tourism industry. In order to provide this information, INTRA conducted four separate research elements: A review of the North Dakota visitor industry, including the organized tour industry A profile of current domestic and Canadian visitors to North Dakota An analysis of North Dakota s primary domestic market An analysis of 1993 and 1994 economic impacts associated with travel in North Dakota This report includes the findings of all four elements. Separate visitor profiles are provided for domestic and Canadian visitors, with the section covering Canadian visitors also including tables that combine the domestic and Canadian samples to provide a profile of all North Dakota visitors. Research Methodology In order to complete this project INTRA gathered data from a variety of sources within and outside North Dakota, interviewed a number of individuals regarding visitor industry characteristics and trends in the state and prepared a number of technical analyses pertaining to visitors and the economic impacts generated by travel and tourism. The research methodology was developed in cooperation with staff at the North Dakota Tourism Department, who also helped with certain aspects of data collection. The following sections review the methodology employed for the various segments of the study. Additional detail regarding survey methodology appears in Appendix A. Travel Industry Profile and Group Tour Market Information for this portion of the study is from a variety of agency and industry sources in North Dakota, gathered through personal contacts, interviews and published data. Personal or telephone interviews were completed with a number of agency and industry representatives throughout the state, and other data were collected from state and federal agencies and from visitor industry organizations such as the National Tour Association. INTRA Page 1

14 Regional Market Analysis Findings for this portion of the study are based on information from Longwoods International, consisting of profile and attitude data from a sample of 364 previous visitors to North Dakota who live in the eight-state region of Minnesota, Wisconsin, Iowa, Michigan, Illinois, Ohio, South Dakota and Montana. These visitors were selected from the Longwoods household data base for the years 1993 and 1994 and represent a cross-section of traveling households in the primary domestic market area for North Dakota. Visitor Profile The profile of North Dakota domestic visitors makes use of a survey of travelers within the state conducted during the summer and fall of A total of 400 respondents were contacted through intercepts at visitor attractions and destination locations throughout the state. Another 430 visitors were respondents to a mailed, self-administered survey of those who had traveled to the state during 1994 and for whom an address was available, or in some cases who had called the Tourism Department to ask for travel information. In both cases only out-of-state travelers to North Dakota are included. For the mailed portion of the domestic U.S. visitor survey a total of 1,179 questionnaires were mailed to addresses in the U.S. The response in terms of usable questionnaires amounted to 508 respondents, representing an overall response rate of 43.1%. The Canadian sample included 1,100 Canadian visitors to North Dakota, from which 409 completed questionnaires were received representing a response rate of 37.2%. For purposes of analysis the domestic respondent data base is weighted to properly represent a) the geographic distribution of travel among the four regions in North Dakota and b) the distribution of visitors according to their type of travel accommodation. This weighting is intended to minimize possible bias due to visitor sampling at selected locations throughout North Dakota and at specific types of accommodations such as commercial lodging and campgrounds. The Canadian sample is not weighted in this manner because it is not based on intercepts and makes primary use of address sources that represent travelers throughout the state. A more complete discussion of survey research methodology appears in Appendix A. Limitations Throughout the survey process every attempt was made to identify and gather data from as representative a sample of visitors to North Dakota as possible. It is likely, however, that certain types of biases exist in the data base which cannot be eliminated due to data limitations. Biases of these types are characteristic of travel research to some degree and, once identified, do not represent serious limitation to data analysis and interpretation. Page 2 INTRA

15 One likely bias is towards visitors who are destined to North Dakota and/or spend a significant portion of their trip itinerary there. Travelers quickly passing through the state by automobile, for example, who stop only briefly or perhaps not at all, are very difficult to sample. Moreover, travelers of this type are only minimally significant from an economic, travel service or marketing perspective. Accordingly, the visitor profile probably under represents this type of transient travel. However, this bias, to the degree it exists, targets the sample on those travelers that are most economically significant and amenable to marketing programs. An additional bias is towards those visitors who are educated to the extent that they are able to write and complete a questionnaire, and/or speak English well enough to participate in the survey. Foreign visitors whose English language skills are limited will be under represented, as well as Americans or Canadians with very limited written English skills. Finally, the data base represents travelers primarily during the summer and early fall months, although travelers from other periods of 1993 are represented to some degree if their most recent trip to North Dakota was prior to This is the result of using intercept methodology focusing on summer months and on asking respondents on the self-administered instrument mailed during the fall to report on their most recent trip to North Dakota, which, if they made numerous trips, is likely to have been during the summer months. Pleasure travel to North Dakota during the winter is limited, however, so this emphasis on summer and fall does not represent a substantial problem. INTRA Page 3

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17 II. VISITOR INDUSTRY OVERVIEW 1993 A Year of Floods, 1994 A Year of Recovery Travel in North Dakota during the 1993 summer tourism season was severely affected by adverse weather conditions as the Midwest and Upper Plains states experienced widespread flooding. Additional pressure was placed on North Dakota s travel economy by a decrease in Canadian traffic to U.S. border states and to North Dakota in particular proved to be a very different year. The weather improved and the rains in 1993 brought water to many lakes, rivers and streams that had been suffering through drought conditions for several years prior. While Canadian travel was not strong there was an upturn in the financial situation of many Americans and U.S. residents which helped fill the travel void left by the Canadians. There were a number of positive indicators during For example, state parks in North Dakota registered increases in visitation. Day use was up at most state parks across North Dakota and campsite rentals were estimated to have increased 10%. Figure II-1 Campground Use at State Parks Campsite Rentals 10,000 8,000 6, ,000 2,000 0 Lk. Sakakawea Icelandic Ft. Lincoln Turtle River Ft. Stevenson Source: North Dakota Parks and Recreation Department Fort Abraham Lincoln and the Custer House had tremendous summer seasons as did Lewis & Clark State Park. Lake Sakakawea, Icelandic and Fort Stevenson State Parks also posted increases in campground use over 1993 levels. Turtle River was the only state park to experience a decline in camping during Welcome center counts across the state declined to some degree in 1993 and again in 1994, although the decreases registered in 1994 were much lower than those experienced in INTRA Page 5

18 Travel information requests received by the North Dakota Tourism Department dropped 3.8% in 1993 and fell another 1.8% in However these changes could be due to elimination of the print advertising campaign for 1993 rather than declines in the level of interest in North Dakota. Figure II-2 Requests for Travel Information # of Inquiries 140, , ,000 80,000 60,000 40,000 20,000 0 Welcome Centers ND Tourism Dept Source: North Dakota Tourism Department Another positive indicator for continued growth of the state s visitor industry is the visitation to Theodore Roosevelt National Park. Over 512,000 visitors visited the park during 1994, a gain of over 30,000 visitors from 1993 visitation levels. Recreation Visits Figure II-3 National Park Visitation Theodore Roosevelt National Park 540, , , , , , , , Source: National Park Service Visitation also increased at the International Peace Garden and at the Custer House, two other major attractions, and attendance at the new Dakota Dinosaur Museum exceeded projections. Page 6 INTRA

19 Spending by travelers to and through the state reached $912.5 million during 1994 and directly supported over 16,600 jobs. Although travel spending grew 2.1% from 1993 to 1994, employment growth was flat (more discussion and interpretation of these trends is provided in Chapter VII). Overall, the travel industry in North Dakota was fortunate to hold its own in the face of a recovering national economy and the falling value of the Canadian dollar. Figure II-4 Economic Impacts of Travel in North Dakota ($ Million) (Jobs) Source: Dean Runyan Associates Travel Spending Travel-Generated Employment 17,200 17,100 17,000 16,900 16,800 16,700 16,600 16,500 16,400 Canadian Travel The United States Travel & Tourism Administration (USTTA) estimates that Canadian visitation to North Dakota fell 17.3% from 859,700 visitors in 1992 to 710,900 in Travel spending by Canadians fell 20.2% during the same time period. Estimates of the Canadian visitor volume and travel spending in 1994 are not yet available from the USTTA. INTRA Page 7

20 Figure II-5 Canadian Visitation in North Dakota Visitors 1,400,000 1,200,000 1,000, , , , , Source: United States Travel & Tourism Administration (USTTA) Information on the number of vehicles crossing the U.S./Canadian Border at Pembina, Dunseith and other ports of entry indicates that border crossings during the peak summer months were down 10% in The decrease in Canadian visitation and the associated drop in spending -- due in large part to falling exchange rates and Canadian import tax policies -- was felt across the state. Figure II-6 U.S./Canada Border Crossings (June - August) 1,600,000 1,400,000 1,200,000 1,000, , , , , Number of Vehicles Source: Imigration and Naturalization Service (INS) Page 8 INTRA

21 Regional Outlook The regional picture was a mixed bag of travel trends around North Dakota. Not all areas were affected by the floods in 1993 and some areas experienced growth in spite of the continued drop in Canadian visitation. The Coteaus & Prairies BURLEIGH KIDDER FOSTER STUTSMAN GRIGGS BARNES The Coteaus and Prairies Region is set between two rivers, the Missouri and the Sheyenne, and is composed of gently rolling hills and vast stretches of native grasslands. This is the land of the Great Plains where once large herds of buffalo roamed the semi-arid terrain. EMMONS LOGAN MCINTOSH LA MOURE DICKEY RANSOM SARGENT The World s Largest Buffalo and the new National Buffalo Interpretive Center located in Jamestown pay tribute to these large beasts and native herds which still roam the area. The area is also known for the large volumes and species of waterfowl which make this region their resting, feeding and nesting place during their semi-annual migration periods. Steele posted the largest increase in room sales in this region, up over 25% in 1994, following a 33% increase in Bismarck posted a small decline in room tax revenues in 1994 (0.7%) after experiencing an increase in The growth in 1993 could be associated with increased business travel during the year that the legislature is in session. Fort Ransom and Beaver Lake State Parks experienced large increases in campsite rentals during 1994, up 40% and 22% respectively. INTRA Page 9

22 The Valley CAVALIER NELSON WALSH PEMBINA GRAND FORKS The Valley Region stretches from Pembina near the Canadian border, south through the metropolitan hubs of Grand Forks and Fargo and continues south through the Red River Valley to Wahpeton. The region is characterized by a rich agricultural environment with Grand Forks and Fargo serving as the business, transportation, education and entertainment centers for the region. STEELE TRAILL CASS RICHLAND Travel industry businesses in the Grand Forks and Fargo areas serve visitors to an urban market. It is special events, retail shopping opportunities, nice places to stay and eat (at reasonable prices) that bring visitors to the area. Both areas reported dramatic declines in Canadian visitation. Cole Carley, Executive Director of the Fargo Moorhead CVB, reported that 1994 was a good year, but not a banner year. Domestic group tours (motorcoaches) were up slightly, although Canadian visitation declined 9%-10% during Supply of hotel rooms in the Fargo area have been increasing 100+ rooms per year and so far demand has been keeping pace with the increase in inventory. Bonanzaville, USA reported an increase in Canadian visitors to their attraction. This increase could be due to their acceptance of Canadian currency on par (dollar for dollar). Room sales in Grand Forks fell 4.7% in Both Grand Forks and Fargo have seen increased interest in agricultural tours and technical tours. The northern portion of the Valley Region exemplifies the vacation travel market and serves as the gateway to the Peace Garden State from the metropolitan area of Winnipeg, Manitoba. A joint marketing and development effort has been underway between four communities (Walhalla, Pembina, Langdon and Cavalier) to promote tourism to their area. This area has been termed the Rendezvous Region. Each community is 30 miles apart and each highlights an event, activity, facility or other aspect of travel. Their market is made up almost entirely of leisure/pleasure travelers with lots of activity-based family travel. Winter recreation is strong in this part of the state. This corner of the Valley Region reported that Canadian visitation dropped a bit though not drastically as has been seen in other areas of the region. This could be due to Page 10 INTRA

23 the vacation type of pleasure travel which is undertaken in this region versus the business bent of travelers to other areas of the Valley Region. Icelandic State Park showed a 9% increase in visitors to the park during The expected opening of the Pembina State Museum in Summer 1995 will add another major attraction to the state s inventory of historic attractions. The Lakes & Gardens BURKE RENVILLE WARD BOTTINEAU ROLETTE TOWNER MCHENRY PIERCE RAMSEY BENSON EDDY SHERIDAN WELLS As the name implies the Lakes & Garden Region encompasses both numerous lakes, such as Lake Metigoshe and Devils Lake and is also home to the International Peace Garden. Lake Metigoshe is known for the resort and recreational opportunities that abound in both summer and winter, while Devils Lake is the haven for anglers from around the world. The North Dakota State Fair held in Minot during July hosted a record number of visitors in Visitors to the International Peace Garden reached 220,000 in 1994, up 17% from 1993 visitation levels and surpassing visitation levels recorded in Transient lodging tax revenues collected from visitors staying in commercial accommodations in the Lakes & Gardens Region were down slightly (5.8%) in 1994 after falling over 10% during This region was the hardest hit by falling room tax revenues in the state during Camping at Lake Metigoshe State Park posted an 8.4% gain in 1994 after falling 22% in Campsite Rentals at Devils Lake also showed strong growth in 1994, up 34.4% from the previous year. The West INTRA Page 11

24 GOLDEN VALLEY BOWMAN DIVIDE MCKENZIE SLOPE WILLIAMS BILLINGS MOUNTRAIL MCLEAN DUNN MERCER OLIVER STARK MORTON HETTINGER GRANT ADAMS SIOUX This is the Old West where tales of cowboys and Indians and the rugged outdoors all come together. During the region s rich history, members of the Sioux, Arikara, Mandan and Hidatsa tribes roamed the hills, followed later by cattlemen who drove their herds up from Texas to feed on the grasses and by easterners who came to hunt game and view wildlife. This region is known for the rugged Bad Lands and is home to five units of the National Park Service: three in Theodore Roosevelt National Park, Knife River Indian Villages and Fort Union Trading Post. In 1994, Theodore Roosevelt National Park had a record setting year, attracting over 511,000 visitors. 10% during the summer of Visitors to Custer House increased over Room sales in Medora fell 1.8% in 1993 and rebounded in 1994 showing a 10.1% increase. The Medora Musical, a Broadway-style song and dance festival, registered increases in visitation, went up 17.2% during Dickinson reported an increase of 12.7% in room sales during The Dakota Dinosaur Museum which opened in May 1994 welcomed 47,000 visitors -- exceeding expectations -- and contributed to an inventory of new and exciting things to do in the west. Page 12 INTRA

25 III. DOMESTIC VISITOR PROFILE Domestic visitors -- those originating from elsewhere in the United States -- comprise the majority of visitors for most destinations within North Dakota and are described in this section. Chapter IV describes Canadian visitors, who represent a very important market for many locations in North Dakota, and also summarizes all visitors to North Dakota, domestic and Canadian combined. Profile data for domestic visitors are from the survey of North Dakota visitors conducted in the Summer and Fall of 1994, as described in Chapter I. The data base consists of 431 respondents and is weighted according to geographical distribution and type of accommodations to represent visitors to North Dakota as closely as possible. All findings reported in this chapter represent the weighted data set. Research methodology is described in Appendix A. A copy of the questionnaire used for data collection appears in Appendix B. Breakouts throughout the following analysis are selected in order to illuminate important distinctions among travelers. Purpose of trip distinguishes between travelers on pleasure trips (on vacation and/or visiting friends or relatives), those in the state on business or to attend a conference or convention, those combining business or conference with pleasure and those who describe their trip as just passing through. Most of these pass-through travelers are probably on a pleasure trip. Finally there is an other trip purpose category that includes those on personal business (family affairs, medical, educational, legal). The breakout of domestic visitors according to these categories appears in Table III-1. Because such a high proportion of travelers are on a vacation/pleasure trip (62.4%) the number of respondents in the other visitor categories is limited. Accordingly, the breakouts for these groups should not be considered as accurate as the findings for pleasure travelers. For purposes of comparisons, however, the findings are very illuminating. Other breakouts classify visitors with respect to whether they are destined primarily for North Dakota on the trip versus visiting the state while on a trip primarily destined elsewhere, or whether they are first-time or repeat visitors. In the case of repeat visitation, the distribution of domestic visitors is heavily distributed to repeat visitors resulting in a relatively small group of first-time visitors. Because of the importance of understanding certain aspects of first-time visitors, however, this breakout is used in certain instances. INTRA Page 13

26 Table III-1 Domestic Respondent Distributions Purpose of Trip, Primary Destination and Repeat Visitation Distribution Percent of Respondents Purpose of Trip Vacation/Pleasure Vacation 29.9% Visit friends/relatives 32.5% Business/Conference Business 7.8% Conference/convention 4.4% Combination business/pleasure 8.2% Traveling through 7.5% Personal/family affairs/medical 4.6% Other 5.1% Total 100.0% Primary Destination North Dakota 69.6% Another destination 30.4% Total 100.0% Repeat Visitation Repeat visitor 92.4% First-time visitor 7.6% Total 100.0% Source: INTRA Those tables illustrating a percentage distribution among mutually exclusive categories show a total of 100.0%; in some cases the actual sum of the categorical percentages varies slightly from this value due to rounding errors. In the case where response categories represent responses to a multiple response question, they are not mutually exclusive and accordingly no total percentage is shown. Page 14 INTRA

27 Domestic Visitor Origin Most domestic visitors are from the North Central Region, in particular from the adjacent states of Minnesota, Montana and South Dakota. Overall nearly 40% of domestic visitors are from the West North Central region, of which North Dakota is a portion. See Table III-2. Other regions contributing substantial portions of visitors include the East North Central region (14.7%), Mountain region (16.3%) and the Pacific region (12.7%). Relatively few domestic visitors to North Dakota are from the Northeast, Atlantic or Southern regions. Business travelers are most likely to be from nearby regions, whereas those passing through are most likely to be from more distant regions. For business/conference visitors, 44.1% are from other states within the West North Central region and most of the remainder are from either the East North Central or Mountain regions. This illustrates the close relationships between businesses in North Dakota and other businesses in the North Central and Mountain area. Pass-through travelers, however, are most often on pleasure trips with extended itineraries and are much more likely to originate from as far away as the South Atlantic region (e.g., Florida) and the Pacific region (e.g., California). The largest proportion of domestic visitors are from Minnesota. Overall, about a quarter of visitors are from Minnesota, which exceeds by far the contributions of all other states. The next closest is Montana with 7.8% of visitors. California at 6.2% makes the largest contribution among distant states. Domestic visitors primarily destined to North Dakota are more likely to be from the North Central region. Those destined primarily to North Dakota are most often from the North Central regions (45.3% and 11.3% for West and East, respectively) or from the Mountain region (18.5%). Those primarily destined elsewhere, in comparison, are much more likely to be from more distant regions. INTRA Page 15

28 Figure III-1 U.S. CENSUS DIVISIONS Pacific New England Mountain West North Central East North Central Middle Atlantic West South Central East South Central South Atlantic Table III-2 Domestic Visitor Origin, Regions of the U.S. by Primary Destination Percent of Respondents Region North Dakota Other Domestic Respondents New England 1.8% 1.8% 1.8% Middle Atlantic 2.3% 6.8% 3.6% South Atlantic 4.6% 8.9% 5.9% East North Central 11.3% 23.1% 14.7% East South Central 0.4% 2.2% 1.0% West South Central 4.8% 3.5% 4.4% West North Central 45.3% 25.8% 39.6% Mountain 18.5% 11.1% 16.3% Pacific 10.9% 16.9% 12.7% Total 100.0% 100.0% 100.0% Note: Multiple responses total to more than 100%. Source: INTRA Page 16 INTRA

29 Table III-3 Domestic Visitor Origin, Regions of the U.S. by Primary Trip Purpose Vacation/ Visit F/R Business/ Conf. Percent of Respondents Combined Passing Bus/Pleas Through Other Domestic Respondents New England 1.2% 5.0% 1.4% 1.7% 1.9% 1.8% Mid Atlantic 4.6% 0.9% 0.0% 5.7% 1.8% 3.6% South Atlantic 6.3% 4.2% 2.1% 12.4% 1.3% 5.9% East North Central 14.6% 13.3% 9.3% 27.2% 14.2% 14.7% East South Central 1.0% 1.1% 0.0% 2.8% 0.0% 1.0% West South Central 5.2% 7.1% 1.5% 2.3% 1.4% 4.4% West North Central 39.3% 44.1% 44.4% 22.8% 46.7% 39.6% Mountain 14.2% 16.6% 32.4% 9.2% 20.3% 16.3% Pacific 13.5% 7.8% 8.8% 15.9% 12.4% 12.7% Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Source: INTRA Table III-4 State of Domestic Visitor Origin by Primary Trip Purpose Vacation/ Visit F/R Business/ Conf. Percent of Respondents Combined Passing Bus/Pleas Through Other Domestic Respondents Minnesota 25.4% 26.6% 27.0% 12.6% 26.6% 24.8% Montana 5.3% 6.9% 24.2% 6.3% 11.7% 7.8% South Dakota 5.4% 9.6% 6.9% 0.0% 12.3% 6.3% California 6.4% 7.6% 3.0% 8.1% 4.4% 6.2% Wisconsin 5.5% 4.1% 1.5% 11.7% 8.0% 5.6% Illinois 2.8% 3.9% 3.2% 4.8% 1.3% 3.0% Michigan 3.3% 1.9% 1.4% 7.5% 2.7% 3.2% Texas 3.2% 3.3% 1.5% 2.3% 1.3% 2.8% Washington 3.6% 0.0% 4.1% 3.3% 0.0% 2.8% Iowa 1.8% 3.1% 5.3% 5.8% 0.0% 2.4% Colorado 1.8% 3.3% 5.0% 1.7% 3.6% 2.4% Other 35.5% 29.7% 16.9% 35.9% 28.1% 32.7% Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Source: INTRA INTRA Page 17

30 Those traveling to, or whose primary destination is, North Dakota tend to be from neighboring states. Of those destined primarily to North Dakota (compared to those traveling through North Dakota but destined primarily elsewhere), nearly three in ten are from Minnesota and nearly one in ten are from Montana. Most visitors from South Dakota are primarily destined to North Dakota. Table III-5 State of Domestic Visitor Origin by Primary Destination Percent of Respondents Domestic North Dakota Other Respondents Minnesota 28.1% 16.9% 24.8% Montana 9.0% 5.1% 7.8% South Dakota 8.2% 1.9% 6.3% California 5.0% 9.3% 6.2% Wisconsin 5.0% 7.1% 5.6% Illinois 2.1% 5.0% 3.0% Michigan 1.9% 6.6% 3.2% Texas 2.8% 2.6% 2.8% Washington 2.1% 5.1% 2.8% Iowa 1.9% 3.3% 2.4% Colorado 2.6% 1.9% 2.4% Other 31.3% 35.2% 32.7% Total 100.0% 100.0% 100.0% Source: INTRA Page 18 INTRA

31 Table III-6 State of Domestic Visitor Origin by Repeat Visitation Percent of Respondents Domestic First Visit Repeat Visit Respondents Minnesota 21.1% 25.0% 24.8% Montana 5.0% 8.0% 7.8% California 9.1% 6.1% 6.3% South Dakota 3.4% 6.5% 6.2% Wisconsin 6.4% 5.6% 5.6% Illinois 3.8% 2.9% 3.0% Michigan 3.8% 3.2% 3.2% Texas NA 2.8% 2.8% Washington NA 3.0% 2.8% Iowa NA 2.3% 2.4% Colorado NA 2.4% 2.4% Other 35.6% 32.2% 32.7% Total 100.0% 100.0% 100.0% Note: Data excluded for cells with fewer than three cases. Source: INTRA INTRA Page 19

32 Length of Stay and Regional Travel Patterns NORTH DAKOTA TOURISM REGIONS DIVIDE Lakes & Gardens The Valley BURKE RENVILLE BOTTINEAU ROLETTE TOWNER CAVALIER PEMBINA WILLIAMS MOUNTRAIL WARD MCHENRY PIERCE RAMSEY WALSH BENSON MCKENZIE NELSON GRAND FORKS MCLEAN SHERIDAN WELLS EDDY DUNN MERCER FOSTER GRIGGS STEELE TRAILL GOLDEN BILLINGS OLIVER VALLEY STARK MORTON BURLEIGH KIDDER STUTSMAN BARNES CASS SLOPE HETTINGER GRANT LOGAN LA MOURE RANSOM BOWMAN ADAMS EMMONS RICHLAND The West SIOUX MCINTOSH DICKEY Coteaus & Prairies SARGENT Visitors often travel to more than one region while in North Dakota. Visitation is fairly evenly spread throughout the state, as is evident from the last column of Table III-7. About two of five travelers visit each of the West, Coteaus & Prairies and The Valley regions and about one-third visit the Lakes & Gardens region. These figures show that travelers commonly visit more than one region while in North Dakota, but are somewhat more oriented to traveling through the southern portion of the state than the northern. Business travel is most concentrated the Coteaus & Prairies region and pass-through travel is least concentrated in the Lakes & Gardens region, the only region without direct interstate highway access. Page 20 INTRA

33 Table III-7 Domestic Visitor Destination Within North Dakota by Primary Trip Purpose Vacation/ Visit F/R Business Conf. Percent of Respondents Combined Passing Bus/Pleas Through Other Domestic Respondents The West 44.7% 28.0% 43.1% 42.4% 35.7% 41.7% Lakes & Gardens 33.0% 30.8% 28.8% 23.4% 36.4% 31.9% Coteaus & Prairies 42.1% 60.9% 38.3% 36.2% 32.0% 42.6% The Valley 43.5% 39.7% 57.5% 39.7% 45.9% 44.0% Source: INTRA Overall, length of stay for overnight visitors is five nights. Overall length of stay is 5.0 nights for those staying overnight in North Dakota. See the bottom row of Table III-8. Average length of stay is somewhat greater for those traveling for pleasure (5.4 nights) and those on business or attending a conference or convention (5.5 nights). The overall average is somewhat greater than the 4.2 nights reported for For purposes of calculating averages, those respondents reporting lengths of stay longer than 21 nights -- a portion of whom are in the state on what amounts to a temporary work assignment -- are excluded. Figure III-2 North Dakota Region Length of Overnight Stay by Region The West 2.9 Lakes & Gardens 3.8 Coteaus & Prairies 3.4 The Valley Number Nights INTRA Page 21

34 Lengths of overnight stay are greatest in the East and North Central Regions. Average length of overnight stay is 3.8 nights in both The Valley and Lakes & Gardens regions; the shortest length of stay is 2.9 nights in the West. Table III-8 Average Length of Overnight Stay Within Regions, Domestic Visitors by Primary Trip Purpose Region Vacation/ Visit F/R Business/ Conf. Average Stay (Nights) Combined Passing Bus/Pleas Through Other Domestic Respondents The West Lakes & Gardens Coteaus & Prairies The Valley North Dakota Source: INTRA More than half of visitors stay for one or two nights in all regions. The majority of visitors stay one or two nights in the regions they visit, although a portion of visitors who stay longer brings the average stay up to more than double this amount. The percentage distribution in Table III-9 includes all visitors, even those who indicated that they stayed more than 21 nights. Because many visitors spend time in more than one region the most common length of stay category is three to five days. Trip Characteristics Most domestic travelers have visited North Dakota previously. Overall, 92.4% of domestic travelers have visited North Dakota previously. See Table III-10. This pattern holds across all North Dakota visitors for all purposes. This pattern has important implications for travel promotion programs, as discussed in the recommendations section. A high proportion of domestic visitors stay overnight in North Dakota. Among domestic visitors 91.5% indicate that they stayed overnight in the state. This proportion reaches 94.0% for pleasure travelers. This pattern relates to the large size of the state and to the high extent of repeat visitation, which tends to be targeted to specific destinations. The nature of the sample could also influence these figures, however, since the sampling of visitors tends to miss those who simply drive through the state stopping only for fuel and food. Page 22 INTRA

35 Table III-9 Length of Overnight Stays Within Regions, Domestic Visitors Number of Nights The West Percent of Respondents Coteaus & Prairies Lakes & Gardens The Valley North Dakota % 26.3% 37.6% 35.7% 16.7% % 25.1% 17.1% 25.5% 21.0% % 28.2% 26.8% 18.4% 31.4% % 11.1% 11.3% 7.6% 15.3% % 7.6% 5.8% 8.8% 10.1% 15 or more 1.3% 1.9% 1.4% 3.8% 5.5% Total 100.0% 100.0% 100.0% 100.0% 100.0% Average Source: INTRA Most domestic travelers arrive by automobile or RV. Overall, 65.1% of domestic travelers arrive by private automobile or pickup, with another 17.1% arriving by RV or with a travel trailer. Air arrivals amount to 11.6% overall. Business travelers are most likely to arrive by air. Over a third (34.4%) of business/conference travelers arrive by air. This group also makes the most use of rental automobiles (4.8%). Transportation Mode Private Auto Rented Auto RV/Trailer Airline Tour Bus Other Figure III-3 Mode of Transportation All Respondents Percent of Respondents INTRA Page 23

36 Table III-10 Travel Patterns, Domestic Visitors by Primary Trip Purpose Vacation/ Visit F/R Business/ Conf. Percent of Respondents Combined Passing Bus/Pleas Through Other Domestic Respondents Repeat Visitation First trip 7.7% 6.6% 4.8% 7.4% 8.6% 7.6% Repeat trip 92.3% 93.4% 95.2% 92.6% 91.4% 92.4% Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Average Number of Visits in 1994 Day trips Overnight trips Overnight Stay Yes 94.0% 88.9% 87.8% 91.1% 82.5% 91.5% No 6.0% 11.1% 12.2% 8.9% 17.5% 8.5% Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Mode of Transportation Private auto 67.5% 49.1% 75.0% 48.9% 73.6% 65.1% Rented auto 3.7% 4.8% 0.0% 1.7% 3.0% 3.3% RV or travel 18.6% 5.5% 6.5% 41.0% 13.2% 17.1% trailer Airline 8.2% 34.4% 14.4% 4.0% 7.5% 11.6% Tour bus 0.4% 1.0% 0.0% 0.0% 1.3% 0.5% Other 1.5% 5.2% 4.2% 4.5% 1.4% 2.4% Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Source: INTRA North Dakota is the primary destination of about three-quarters of visitors. North Dakota is the primary destination for 70.6% of all respondents and a nearly equal proportion of pleasure visitors. Business/conference travelers are much more likely to be destined primarily to North Dakota (87.0%). Given the high proportion of repeat visitation (over 90%), it is apparent that a substantial portion of North Dakota visitors have experience with the state as a destination and are specifically bound there for pleasure travel. Table III-11 Page 24 INTRA

37 Primary Destination of Trip, Domestic Visitors by Primary Trip Purpose Primary Destination Vacation/ Visit F/R Business/ Conf. Percent of Respondents Combined Passing Bus/Pleas Through Other Domestic Respondents North Dakota 70.0% 87.0% 85.2% 5.8% 90.3% 70.6% Other destination 30.0% 13.0% 14.8% 94.2% 9.7% 29.4% Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Source: INTRA Accommodations Commercial lodging is the most common form of overnight visitor accommodations. Over half (54.2%) of respondents report staying in a hotel, motel, resort or bed and breakfast while in North Dakota. The homes of friends or relatives are used by 37.8% of respondents and 29.1% use a campground. Since visitors sometimes use more than one form of accommodation these percentages add to somewhat more than 100%. Figure III-4 Primary Accommodations Hotel/Motel Resort/B&B Friends/Rel. Campground Second Home1.1 Other Primary Accommodations All Respondents Percent of Respondents INTRA Page 25