Managing Change A Case Study: Niagara
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1 Managing Change A Case Study: Niagara PRESENTED BY: ED BROOKER NIAGARA COLLEGE TTRA CANADA CONFERENCE OCTOBER, 2008
2 OVERVIEW Background Driving down the tourism highway Oops Road Construction (aka tourism downturn; the excuses) Did we miss the signs? What are our options? Perhaps the options are not the issue the driver is Relating all this to tourism research 2
3 BACKGROUND Where have the tourist s gone? 3 They were here last year they should be here this year!
4 Start with Numbers million international travelers 898 million international travelers 6.5% average increase since 1950 Source: World Tourist Organization Ed Brooker, Niagara College 'Managing Change, TTRA Canada 2008
5 The America s 5 The Average 6.5% (previous slide) The Americas 2.5% annual growth rate Ed Brooker, Niagara College 'Managing Change, TTRA Canada 2008
6 Niagara Region Key border crossing Key tourism area 6 # of Americans coming to Canada dropping e.g. 14% drop in January, 2008 (TIAC) Same day car trips fell 20.4% 3.6 M overnight visitors are coming to NF, NY and 5.1 M to Buffalo but not crossing
7 The Detour Drop in numbers attributed to various reasons: Passport Issues Currency Exchange Price of Fuel Terrorism SARs The Weather 7
8 TALC An Alternative Explanation Stage 1 Exploration / Discovery Stage 2 Discovery / Development Stage 3 Development Beginnings of Mass Tourism Stage 4 Consolidation / Stagnation Stage 5 - Decline 8
9 Niagara s Markets Family Market Marineland Adults Casino Culinary Wineries Cultural Niagara-on-the-Lake 9
10 Niagara Visitor Mix 10 Niagara Visitor Mix Other Overnight business Overnight VFR Overnight Pleasure Day Visits 0% 20% 40% 60% 80%
11 Overnight Accommodation Source: Ontario Ministry of Tourism,
12 Signs of Maturity 12 Various Signals Decline in visitors Emerging competition from newer destinations Destination no longer fashionable Outdated amenities New properties developing on periphery Diversification to conferences to keep # s Niagara s Situation From 16 to 12 M New Casino s in NF, NY (different reg s) It s not the destination it used to be Offering same Great Wolf Lodge New Convention Centre planned for 2009 Ed Brooker, Niagara College 'Managing Change, TTRA Canada 2008
13 13 Stoppin the slide Rejuvenation Efforts Ed Brooker, Niagara College 'Managing Change, TTRA Canada 2008
14 Longwoods Visitor and Image Study 2008 Study 14 Overall image compared to competition: Great place to visit for a vacation Focused on the tourism issues facing Niagara Ed Brooker, Niagara College 'Managing Change, TTRA Canada 2008
15 Efforts to Collaborate At the Bi-National Level Binational Tourism Alliance Mayors Niagara Falls At the Regional Level Branding Niagara 15
16 Efforts to Rejuvenate Branding Econ. Development Initiative N is... A symbol of an authentic place Flexible creative platform for communication Represents uniqueness A quality product, a badge of honour, a unifying force 16
17 17 Potential Guide Book Covers Ed Brooker, Niagara College 'Managing Change, TTRA Canada 2008
18 18 The Flexibility of N Ed Brooker, Niagara College 'Managing Change, TTRA Canada 2008
19 Need to Collaborate Challenges STEs 12 Municipalities 4 key Markets 19 Need to collaborate with New York City!
20 What about the driver 20 FAMILY BUSINESSES NEED TO LOOK FURTHER AND DEEPER
21 21 How about some entrepreneurship? Need more than incremental improvements Ed Brooker, Niagara College 'Managing Change, TTRA Canada 2008
22 The Necessary Shift 22
23 Incremental vs. Radical Innovation Adapted from Callot, Adopted from Flipo (2001) Existing on the market Not existing on the market Existing in the firm 1 (modification, adaptation, revival) 3 (service extended but adapted to a new market) Not existing in the firm 2 (new service for the firm) 4 (totally new service)
24 Market Driven vs. Market Driving Adapted from Schindehutte, Morris and Kocak, 2008 Market Driven Focus on customer Competitive positioning Market orientation Incremental innovation 24 Market Driving Focus on all industry participants Competition, alliances and cooperation Entrepreneurial orientation Radical / disruptive innovation
25 Wrap -up These principles can be applied to various contexts Ongoing research into the trigger points of innovation within SMTEs 25 Thanks
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