ANALYSIS OF THE FRONT STREET VILLAGE DEVELOPMENT BEAUFORT, NC DECEMBER 5TH, 2014

D R . S I M O N H U D S O N , D R . D A V I D C Á R D E N A S D R . F A N G M E N G & D R . K E V I N S O

Beaufort, NC Front Street Village Development Analysis

Table of Contents Page Number

Executive summary 2-3

Key success factors for destinations 4-9

Key failure factors for destinations 10-12

A profile for successful coastal towns and waterways 12-22

Resource audit 23

Strength and weaknesses 23-25

Potential partnerships 25-27

Consumer trends in tourism for destination development 28-37

Acknowledgements 37

References 38-41

Appendices 42-47

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Executive summary

The primary objective of this project was to identify the key factors for success and failure

attributable to becoming a leading (or losing) destination. To achieve this objective, the research

team first studied comparable destinations and waterways domestically and internationally

through personal visits and content analysis of existing written documents and literature. In

addition, past and current waterway projects were analyzed to glean essential indicators of

success and failure in similar ventures. The team also identified existing resources and strengths

in the Beaufort region and explored potential tourism products and packages that would

complement existing businesses and help attract tourists to Front Street Village (FSV). Finally,

the research team conducted an extensive review of the current and future consumer trends in

tourism in the U.S. and in major potential market source regions for FSV.

Based on the results of this comprehensive analysis of the current industry trends, Beaufort’s

tourism products, and its competitive position in the market, the team provides the following

observations and recommendations for FSV.

Accessibility to a destination is critical. Beaufort’s location is remote when compared to other

tourist destinations and currently has limited access from its main travel markets and major

highways. This has both its benefits and constraints. New infrastructure is being built that will

significantly improve access and reduce drive time. The improved access, if marketed

appropriately, could lead to increased traffic flows in Beaufort and Carteret County. The remote

water front location of FSV can also be an asset. FSV will have the ability to provide their guests

with a relaxing and gratifying experience by providing exquisite food, spa, and accommodations,

only seconds from the Inter-Coast Waterway and some of North Carolina’s majestic nature and

culture. FSV could also easily leverage itself as a tourist attraction on the water.

It is important that FSV matches the persona and feel of Beaufort, yet differentiate itself from the

other properties in and around the region. Beaufort is well known for its history and maritime

culture and therefore should incorporate that into the FSV décor and ambiance, as well as train

the staff about the importance of the region’s history and culture so that they are aware of the

unique features of Beaufort as a tourist destination. Carteret County is mostly known for its

beaches and provides mainly midscale to economy lodging, food and beverage, and event space.

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In consideration of this, FSV has the opportunity to differentiate and position itself as an

exclusive four to five star resort that provides real quality (both product and services) to the

region. This would match the retail shop, event space, boathouse, and cottages currently at FSV,

ensuring a greater level of consistency among all the product and service offerings provided. It is

also strongly recommended that FSV strive for LEED Certification which not only helps ensure

environmental protection and sustainability to the property and enhances the corporate image of

FSV, but also helps to elevate the class and reputation of the facility.

The residents in Beaufort have a strong sense of community and are highly engaged and

involved in the development of the town. It is important therefore that FVS works with the

community in any tourism planning and development, and have the residents ‘feel’ like FSV is

part of Beaufort and part of downtown (Front Street). FSV will need resident support and

acceptance to be successful in the long term. Additionally, Beaufort and FSV will need to work

together to enhance the tourism products and services in the region. Coordinated efforts for

example, will be needed to develop further water-based activities around the hotel and bistro, to

develop walking trails connecting FSV to downtown, and to leverage the rich cultural heritage

such as the historic Blackbeard connection.

Finally, a comprehensive branding and marketing strategy should be developed and

implemented. This should be based on sound stakeholder research. As mentioned in the report,

marketing will be a critical component for FSV to gain awareness as a tourist destination. A

strong destination brand can increase the residents’ sense of belonging and pride, motivate and

direct employees, and influence the purchase behavior of visitors. Moreover, a strong brand adds

value to the destination.

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What makes a destination successful?

In order to identify best practices that serve as a guide for the development of Front Street

Village, the research team conducted an extensive analysis of successful coastal towns and

waterway developments both within the United States and other countries. The first section lists

the success factors for destinations based on those profiles, whilst the second section outlines

certain factors that may lead to failure. Case studies are profiled in the third part of this section.

Key success factors for destinations

Accessibility: Accessibility defines a destination’s ability to provide appropriate visitor access

into a destination and dispersal throughout the destination. Transport and barrier-free

infrastructure are among the most important factors which control the accessibility and

development of tourist destinations. Transportation links across the destination influence the

spatial development of the local economy and communities. For any destination, convenient

airport access is a minimum for pursuing a growth strategy. For coastal towns, access to the

beach and water is vital to all the coastal communities. Access to well-designed seashore

pathways is also essential, as well as seaside attractions along the pathways. For example,

Seaside, Florida as a destination provides visitors easy access to airports such as Northwest

Florida Beaches International Airport (ECP), which provides nonstop service to several major

cities in the U.S. including Atlanta, Nashville, Houston, and Baltimore.

Branding/Marketing: Marketing is a critical component in gaining prospect attention,

increasing the awareness of a place as a tourist destination, stimulating travel demand, and

winning visitors. Consistent communication with potential visitors helps them associate a

destination brand and its products and services, and facilitate the recognition of the brand from

the crowd. A strong destination brand can also increase the residents’ sense of belonging and

pride, motivate and direct employees, and influence the purchase behavior of visitors. Moreover,

a strong brand adds value to the destination. For example, in recognizing the critical need to set it

apart from other cities throughout Florida, the United States, and the world, St. Augustine took

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initiatives to understand, and establish the brand identity for the city. In this case, the process

started with research with the city surveying 1,000 visitors, community members and merchants

to obtain feedback about general perceptions of the city, which informed the design of the city’s

brand identity. The final identity was chosen from three different concepts that emerged from the

research. Each of the three concepts had individual strengths. The concepts were further tested

and updated based on feedback from more than 140 people, including community members,

visitors and City of St. Augustine employees. Based on the feedback received, the current brand

identity was selected. The brand identity concept brings together the unique combination of

history and water. The logo is a modern update to the classic city crest. The terra cotta and red

reflect the Spanish heritage, and the aquamarine carries ocean cues. The typography is both

historical and luxurious. The image showcases the Castillo de San Marcos, which is the symbol

most associated with St. Augustine. Further, steps included an updated website with an online

store, creating and hanging light pole banners throughout the city, and producing merchandise to

sell on their online store that captures the city brand.

Service Quality: Understanding the importance of good service is essential for the sustainable

development of destinations. Good service can help destinations in creating new visitors,

retaining loyal tourists/customers, and encouraging valuable positive word of mouth advertising.

What is more, excellent service can differentiate a coastal town from its competitors, and it plays

a unique role in prevention and solution of complaints. But despite its importance, quality

customer service is the exception rather than the norm in many destinations. The authors of this

report believe there are three reasons for this. First, many destinations wrongly believe they are

providing service excellence; they get wrong-headed about their customer’s satisfaction because

they rely on indirect metrics to measure service, rather than designing the right offers and

experiences for the right visitors. Second, destinations simply do not understand the significance

of customer service, despite the exhaustive literature that has made the connection between

service excellence, satisfaction, and loyalty – and therefore profits. Finally, even if destinations

recognize the importance of customer service, some do not know how to deliver consistent, high

quality customer service on a consistent basis.

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Human Resources: Related to the point above, the competitiveness of a coastal town in

attracting tourists is based on its ability to deliver unique, superior, unforgettable, and hassle-free

experiences. Intangible services provided by people in coastal towns are inevitable components

of good tourism experiences. In this sense, personnel can be recognized as the most important

source of the competitive advantage or weakness of a destination. As the main interface with

customers, staff in hotels and restaurants, employees in tourism organizations, and even the local

residents are presenting the image of coastal towns. Their skills and knowledge define the level

of customer service in coastal towns. Training therefore is critical. Steamboat Springs, a resort

town in Colorado, recently decided to give the whole town customer-service training! This was

in response to visitor survey results in 2013 whereby their Net Promoter Score — a rating

derived by asking customers, “How likely is it that you would recommend us to a friend or

colleague?” — came in at 70 of a possible 100, meaning that, while visitors liked the town, many

were not excited enough to spread the word. In this case, the town chose to bring in a consultant

to improve the customer’s experience — and encourage loyalty — by teaching workers how to

form a warm connection with clients and use the knowledge they glean from this connection.

Historical Sites and Cultural Heritage: At coastal towns, beaches and seaside activities are key

attractions. However, the modern tourists are seeking educational experiences. Based on our

analysis of successful coastal destinations, it is easy to see that they all have rich historical sites

and a strong cultural heritage. In St. Augustine FL, for example, visitors can enjoy the Spanish

architecture, walk the cobblestone streets of historic downtown, and absorb the Colonial history.

Similarly, Beaufort SC is the second oldest city in the state and the historic antebellum

architecture is felt and maintained throughout the city.

Targeting Niche Markets: Many successful destinations differentiate themselves from others by

targeting niche markets. Provincetown, MA, for example, has grown into a welcoming place

largely built around and by the Gay and Lesbian community. The GLBT tourism is unique in

Provincetown. Military tourism is a niche market for the town of Beaufort SC. To attract this

market, Parris Island located in Beaufort SC, offers the public museum visits and guided tours of

the base. Visitors are also welcomed to participate in scheduled graduations and graduation

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related activities. Developing a product to target a certain niche market can help to shape the

unique attributes of a destination.

Vivid Local Life: Previous research has shown that without happy residents, a destination cannot

be competitive and therefore sustainable. Residents in St. Augustine, for example, can

experience a colorful nightlife, with numerous restaurants, live entertainment at local bars,

award-winning performances, and local concerts. These are the attractions that also bring tourists

flocking to the town. Art galleries, museums, and theatres are other facilities that lead towards an

enhanced quality of life for both residents and tourists.

Environmental Protection: Nature endows many coastal towns with a pleasant climate and a

beautiful natural environment. On the other hand, the ecosystem in these areas can be

complicated and sensitive. Eco-friendly development is essential for these coastal towns. A well-

designed blueprint for tourism development, that includes protection for the environment,

guarantees sustainability of the destination. Sanibel Island, FL and Provincetown, MA

understand well the important role of environment protection. Buildings on Sanibel Island are

“no taller than the tallest palm tree." Residents and visitors alike maintain a healthy respect for

the environment. For this reason, half of Sanibel’s acreage has been preserved against

development. Similarly, Provincetown, MA has dedicated more than half of their national

seashore to the federal protection of animal, bird life and walking and biking trails. Education

centers provide free instruction on the history and practices of the island’s green actions resulting

in eco-tourism becoming one of the major draws for visiting Provincetown.

Water Accessibility and Water Activities: Good accessibility to water is critical for coastal

towns, where water and sea are main attractions. One of the major reasons for people choosing

coastal towns is their desire to get close to the water. Riding bikes along the beach in Beaufort

SC and well-maintained trails in St. Augustine are frequently mentioned in positive tourists’

reviews. Most of these towns provide numerous water activities such as swimming, fishing,

sailing, shrimping, crabbing, snorkeling, kayaking, boating, and even whale watching.

Interestingly, a recent WSJ article said that property buyers are choosing marina-front homes

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over beach homes; they typically cost less and are often cheaper to insure, and often times dock

space is included in the sale eliminating the need for a boat-slip rental.

Trails Alongside Waterways or Coastal Areas: Activities on the water are paralleled in

interest to shore-side activities – people are attracted to cycling and walking paths alongside

canals/rivers, and eating and drinking in waterside cafes and bars is very popular. On the Kennet

& Avon Canal, over 60% of visitor spending is by non-boat users, highlighting the importance of

on-land activities. Packaged, themed or organized trails seem quite common, and have a

significant impact on the economies surrounding waterways. Visitor spending on the Erie

Canalway Trail, for example, generates approximately $253 million in sales, 3,440 jobs, $78

million in labor income and $28.5 million in taxes in the New York Upstate economy each year.

The trail, which constitutes much of the towpath of the Erie Canal, is 277 miles long and is open

as an off-road multi-use trail. While overnight visitors to the trail constitute only 18.25% of the

total volume of visits, yet they generate 84% of overall spending. Self-guided tours include three

‘inn-to-inn touring trails’ for cyclists. Therefore, the provision of trails alongside the coastal

areas is considered to be important.

In Belgium too, the waterways are almost inextricably linked to cycling. Almost all of the canals

have towpaths and these waterside routes offer some of the best cycling in the world. Of the

country’s 2,000 km network of canals, approximately 1,600 km of towpath are open to cyclists.

These towpaths are largely traffic-free and most pass through open country, and many are further

connected by trails running along former railways. Both the Flemish and Walloon regional

governments have actively improved towpaths and abandoned railway tracks for use by cyclists.

In some cases where a towpath has been turned into a modern road, separate paths are built for

cyclists.

Events and Festivals: Festivals and events are becoming an increasingly important component

of a destination’s attractiveness, and this is just as true for waterways. In 2014 for example, the

Erie Canalway and the NYS Canal Corporation teamed up to sponsor 28 festivals and events.

These included: Canal Clean Sweep Weekend in April when volunteers were invited to help with

canal-wide cleanup and beautification projects; Our Ability a cross state bike ride from Buffalo

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to Albany in July along the Erie Canalway Trail to raise awareness for people with disabilities;

Cycling the Erie Canal in July where more than 500 riders of all ages and from all over the

country took an 8-day, 400-mile bike tour across New York State, organized by Parks and Trails

New York; and Canal Splash! in August, a weekend of guided walks, bikes and cruises, museum

and gallery exhibits, canoe and kayak paddles, canal side festivals, and performances offered

throughout the Corridor to celebrate the history, culture, and recreational appeal of the NYS

Canal System. Similarly, special events and activities are highly valued in coastal towns. For

example, St. Augustine Florida has events every day, reflecting its rich heritage and culture as

well as bringing out the exciting and unique aspects of the city. St. Augustine has the capacity to

serve events of many types, including large and small, historical and modern, as well as

educational and entertaining. Likewise, Beaufort, SC, highly encourages the local community to

apply for and hold events.

On the Kennet & Avon Canal, a range of events and festivals are held throughout the year at

different locations along the canal, including for example, Newbury Waterways Festival, the

Devizes to Westminster International Canoe Race, BBC Radio Wiltshire Week, and a Ramblers

Relay Walk. Boating pirate adventures around Newbury are also very popular. Previous studies

have alluded to the positive social impacts of such events and festivals for local communities.

For Canal Splash for example, all canal corridor communities, businesses, clubs, individuals, and

non-profit organizations are invited to be part of the event and create their own events.

For boaters cruising the canals in England, there is also an App called e-canalmapp, which is a

collection of guides and maps of the waterways developed for ramblers and cyclists as well as

boaters. The maps display thousands of continually updated points of interest (such as pubs,

shops, moorings etc.), as well as all the waterway information such as locks, bridges and turning

points. An essential feature of the App is that it is off-line, so there is no interruption due to the

poor Internet connection on the canals.

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Key failure factors for destinations

Environmental Change: New Orleans is facing a serious problem- coastal erosion. Several

massive chunks of the land have been taken away by coastal erosion and the area itself would be

twice the size that it is today if it had not eroded away due to rising sea levels. As the coastal

erosion continues, it was estimated that New Orleans will be off shore in approximately 90 years.

In the state of North Carolina, coastal erosion has resulted in the move of Cape Hatteras

Lighthouse, which was moved a quarter of a mile back from the shore. A review of many other

examples shows that environmental change is a less expected but powerful factor that determines

the success or failure of a destination.

Community Engagement: Community engagement in tourism development can add

authenticity and differentiation for successful and sustainable tourism development. As indicated

by many tourism authorities and economic development leaders, obtaining buy-in from local

residents is critical in the process. It is therefore essential to involve local communities in

tourism policy planning and decision making. Otherwise, it may generate tensions between

community wellbeing and tourism development. Residents in Kangaroo Island in Australia, for

example, were not involved in the local policy making process. So rather that working

collaboratively on a tourism development plan, the residents having been excluded, chose to

oppose tourism policy in the area, in hopes of gaining control of the development and protecting

the local environment. Also, in Haiti, the local residents have reacted negatively to being

excluded from the decision making process of their government, and are opposing tourism

development projects on the island. Failure to engage local residents and communities in the

decision making process undermines the success of the destination.

Urbanization: With golf courses, strip malls, water parks, and concrete high-rises heavily

paving over the shore, South Carolina's Grand Strand, including Myrtle Beach, is typical of over-

urbanization as a result of tourism development, resulting in negative impacts such as increased

violence and crime rates as well as an overdependence on tourism. Similarly, the island of

Mykonos in Greece has experienced rapid tourist growth, as well as expansion of tourist

facilities in this island. The uncontrolled development of tourism also leads to great volume of

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built-up areas and degraded environmental quality. Socio-economic structure and local culture

has also been altered in these areas. In addition, such development can present an increased risk

to marine ecosystems, ultimately affecting the natural resources that are vital for tourism

development.

Pollution: Pollution has been a major concern for many destinations, particularly for the coastal

areas. The effect is exemplified as a result of mass tourism or development. Doheny State Beach,

CA, for example, has suffered from poor water quality in the past. The bacterial level of Doheny

at one time exceeded 90%. Poor water quality has kept tourists away from this region.

Circumstances are similar in Wantagh, NY. The bacteria-infested water and high levels of

pollutants ranks the beaches of Wantagh among the worst in the U.S. While pollution may not be

as obvious in some cases, the importance of minimizing pollution should be emphasized, if

sustainable long-term development is a key objective.

Weak Branding and Poor Promotion: In an increasingly competitive global marketplace, the

need for towns and cities to create a unique identity, to differentiate themselves from

competitors, has become critical. Many places promote spectacular scenery, good quality of life,

friendly people, and a sound business infrastructure. However, these factors are no longer

differentiators, so destinations need a strong brand identity to stand out in order to attract people

to live, work, and play. But brand development is often driven by short-term top-down

approaches in which the primary tool of brand expression becomes the final marketing

campaign. Often these campaigns are poorly funded and lack creativity. Consistency in

communicating a destination’s identity to a variety of internal and external stakeholders is

therefore critical for ensuring the destination’s success in the long-term. Not all the coastal towns

and waterways analyzed for this project were sophisticated in promoting their destinations. The

Erie Canalway Preservation and Management Plan for example, acknowledge that the corridor

suffers from a lack of awareness of the canal system, its significance, and its value to potential

visitors. The same can be said for many of the similar sites visited. Signage to waterways and

associated attractions were often poor, with many still relying on traditional print media to get

their message out to potential tourists. Websites also tend to be outdated and difficult to navigate.

There are some exceptions. The Kennet & Avon Canal for example, has an impressive

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interactive holiday guide and map whereby visitors to the site can click on a variety of activities

or interests, such as hiring boats, or visiting hotels, pubs and castles

(http://www.canaljunction.com/canal/kennet_avon.htm). For those interested in visiting pubs

along the canal, brewery tours are also promoted such as the Wadworth Brewery tour.

Profiles of successful coastal towns in the U.S.

1. St. Augustine, Florida

Visitors who come to St. Augustine for the beaches stay for the history—and vice versa. With 42

miles of stunning sugar-sand shores, this city of 13,400 on Florida's northeast coast is also

America's oldest continuously occupied European settlement, founded nearly 450 years ago by

the Spanish. Colonial influences still permeate the town's graceful architecture and narrow

redbrick lanes. That makes for historic sites, including centuries-old churches, forts, and even

Ponce de Leon's storied Fountain of Youth. Visitors can take a sip from the Spring of Eternal

Hope at the archaeological park.

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St. Augustine's dining scene is as vibrant as its history. The Spanish Bakery on St. George Street

has served up its famous empanadas and smoked sausage, not to mention the homemade lemon,

almond, and cinnamon cookies, and large loaves of fresh bread for nearly 40 years. Locals and

visitors also revel in those endless sands, beachcombing at Crescent Beach, surfing at St.

Augustine Beach and hitting its many surf shops, exploring beautiful Anastasia State Park by

canoe, or playing along the super wide, quiet stretches of the shore that locals try to keep

secret—Vilano Beach.

2. Provincetown, Massachusetts

Positioned at the very end of Cape Cod, Provincetown is a genuine outpost of welcome and has

been for centuries. The first landfall of England's Puritans, it grew as a fishing settlement,

attracted artists with its renowned light, and now proudly proclaims itself a thriving destination

for gay America. What may be most remarkable about Provincetown, though, is what surrounds

it—vast sand dunes and more than 30 miles of beaches that offer instant escape into seaside

wilderness. Whether you are sunbathing on peaceful Herring Cove or walking into the breezes

that cross Race Point Beach, the protection of the Cape Cod National Seashore designation keeps

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your views—and moments—pristine. Downtown, the colorful historic buildings and friendly

locals make every stroll there a rich event. Walking the length of Commercial Street, the town's

main drag—from the gallery-lined East End to the rowdier, party-loving West End—lays out a

lot of the enjoyment that Provincetown has to offer: everything from boutiques and bars to

seafood shacks, fudge shops, bookstores, and coffee houses.

3. Sanibel Island, Florida

Located along the Gulf of Mexico, just a short drive from Fort Myers, Sanibel Island is justly

famed for its sunsets, lighthouse, and luxurious resorts. By far, the most popular activity that

visitors do on this island is shelling – one can barely walk a step on the beach without indulging

in the so-called "Sanibel Stoop" to search for shells. But Sanibel has so much more to offer-–

fine accommodations, luscious dining (seafood, of course!), fishing, boating, and just plain

relaxation, a chance to get away from the hurly burly, a chance to draw closer to nature.

On Sanibel, there are multi-use paths – 25 miles total – that function as sidewalks, bike paths and

recreational trails. The intelligent and sensitive way the islands balance resorts with nature has

made them a state-wide model for eco-tourism. Education centers at Sanibel’s two main eco-

attractions introduce the uninitiated to the island’s marine, freshwater and hammock habitats,

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where river otters, loggerhead sea turtles, dolphins, manatees, bald eagles and hundreds of native

and transitory birds find refuge.

The islands’ marinas offer plenty of opportunity to get out on the water. Offerings include

shelling on secluded islands, hitting a beach away from it all, fishing, sailing, snorkeling,

learning about marine life or camping on a bridgeless island. Many resorts and outfitters stock

kayaks, sailboats, paddleboats and an assortment of water toys for vacationers’ enjoyment.

4. Seaside, Florida

Seaside FL is an unincorporated master-planned community, located directly on Northwest

Florida’s acclaimed sugar-white sand beaches in South Walton County on Scenic Highway 30A,

between Destin and Panama City Beach. Founded in 1981 by Robert and Daryl Davis. Seaside is

the much-heralded birthplace of The New Urbanism movement, which is based on rediscovered

traditional town planning principles. As a tourist destination, Seaside is a place where the orange

and pink hues of the sunset, the turquoise blends of the sea and the glistening whiteness of sand

blend in perfect harmony to create a stunning backdrop for a unique and unforgettable

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experience; served with Southern hospitality, luxurious amenities and all the makings of a simply

perfect stay. With clusters of tin-roofed, pastel-painted and picket-fenced cottages strung along

80 acres of sheer architectural perfection, this town sets the tone leisurely for a family beach

vacation, romantic escape, or storybook wedding, as well as for those planning a corporate

gathering, reunion or photo shoot.

Situated on 80 acres, this community is a pedestrian-scaled beach town with 423 residences, 42

specialty retail shops and 12 restaurants and eateries. Seaside is designed so that life’s daily

needs are within a short stroll or a bicycle ride away and features a thriving downtown including

civic, cultural and educational institutions, an artist colony, a public charter school, an inter-faith

chapel, a repertory theater and The Seaside Institute. The town rose to global fame as being the

main filming location of the movie The Truman Show (1998), featuring actor Jim Carrey.

5. St. Marys, Georgia

Historic St. Marys has a storybook setting on the St. Marys River –white picket fences, charming

Victorian inns, and majestic magnolia trees and live oaks welcome you to an atmosphere

perfumed by fragrant salt air. Here you'll discover legends of forgotten battles and daring pirates

as you kayak by moonlight with sea turtles for company.

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6. Beaufort, South Carolina

Lowcountry friendliness and urban refinement strike just the right balance in this beautiful South

Carolina town known for its historic antebellum architecture, exquisite local cuisine, and rich

African-American heritage. Beaufort sits on Port Royal Island, in a verdant curve of the

Intracoastal Waterway in the heart of the Sea Islands, as it has for a little more than 300 years,

making it the second-oldest city in South Carolina. It is glorious strolling and much of the

architecture remains intact, thanks in large part to the Historic Beaufort Foundation, which puts

on a stunning Fall Festival of Houses and Gardens every October. Beyond being an elegant and

welcoming urban center of 12,534 locals, Beaufort is also a springboard for exploring natural

environs, including Hunting Island, a 5,000-acre state park with more than three miles of pristine

beach known as among the most sublime in the state.

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7. Erie Canalway National Heritage Corridor

The Erie Canal covers 524 miles, running from Albany, New York, to Buffalo, New York, and

though the canal was once a significant option for transporting cargo, today it is used primarily

for recreation. In 2000, the U.S. Congress designated the canal as the Erie Canalway National

Heritage Corridor, and according to the New York State Canal Corporation, the canal system

now generates $380 million a year in direct tourism spending.

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8. Saratoga Lake, New York State

Saratoga Lake is a freshwater lake in the eastern part of Saratoga County NY. The lake is

approximately 4.5 miles (7.2 km) long, about 1.5 miles (2.4 km) wide at its widest point, and

about 95 feet (29 m) deep. The Lake is surrounded by the City of Saratoga Springs on the north

west, the Town of Malta on the south west, the Town of Stillwater on the south east, and the

Town of Saratoga on the north east. New York State Route 9P is a highway that runs along the

southern end and eastern side of the lake, and then crosses its outlet in the north.

Profiles of successful waterways in other countries

The analysis also includes the examination of several successful waterways in Europe. The

research team made observations, interviewed key stakeholders, and obtained the most up-to-

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date information regarding tourism infrastructure and facilities on and around waterways.

European Locations included the following:

1. Kennet & Avon Canal, England

The Kennet & Avon Canal in England is England's most southerly cross-country canal and links

London and the Bristol Channel. The 87 mile-long waterway attracts huge numbers of visitors

each year, although it hasn’t always been such a popular place to visit. In the 1960s, it fell into

disrepair and wasn’t fully open to boats. It now owes its existence to the dedication of waterway

enthusiasts and local people who formed the Kennet & Avon Canal Trust and helped to restore

the canal to its former glory. In 1990, the Queen reopened the canal and it is now enjoying a

second renaissance.

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2. The Grand Union Canal, England

The Grand Union Canal meanders across the Midlands of England, and sweeps through the

countryside of the South East. From Union Wharf Marina in Market Harborough, boaters can

cruise for six miles on the Grand Union Canal, where they can then travel north towards

Leicester or south through the Foxton Locks. Foxton has two staircases of locks, each with five

locks to navigate.

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3. Canals around Nieuwpoort and Bruges in Belgium

The two regions of Belgium, the flatland canals of Flanders along the English Channel and the

hills & rivers of Wallonie in the south, are connected in a dense 1,600-km network of recently

improved waterways. The team visited Nieuwpoort, just inland from the coast and ideally placed

to take advantage of Western Belgium; and Bruges, dubbed the Venice of the North.

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Analysis of existing resources and potential tourism products

The research team conducted a resource audit aimed at identifying the existing resources in and

around Beaufort, NC. In addition to reviewing the region’s assets, the research team examined

the local community’s strengths and weakness and identified potential partnerships that would

enhance the Front Street Village development.

Resource audit (See Appendix A for a comprehensive list)

Beaufort’s tourism inventory is anchored by its nature, with over 10 major natural attractions in

and around the town. Many of these natural attractions are nationally and internationally known

such as Cape Lookout National Seashore, and Rachel Carson Reserve. For a small town the

community also has a large number (12) of cultural and historical attractions. The community

hosts over 16 festival and events throughout the year. To service the visitors, many different

activities (19) have been established. Most of the activities are water-based, such as the ferry

services and boat trips. Beaufort has 21 food and beverage establishment and 11 lodging

facilities. The eateries are almost all local establishments with a few fast food restaurants.

Accommodations are either Bed or Breakfasts or small scale economy-type lodging facilities.

Strengths and weaknesses (See Appendix B for a comprehensive list)

Known for its rich maritime history and abundant natural beauty, Beaufort is located on the

Crystal Coast of North Carolina. In 2012, the town was voted “America’s Coolest Small Town”

by Budget Travel Magazine. Much of the charm of Beaufort and the region revolves around the

well-established recreational and boating culture. The North Carolina Maritime Museum is

located in Beaufort and both Duke University and NOAA have established laboratory centers in

the region. Location is both a primary asset and a current constraint with respect to tourism

development in Beaufort, NC. Natural attractions such as Cape Lookout National Seashore,

Rachel Carson Reserve and Cedar Island National Refuge are only minutes from Beaufort and

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Front Streets Village’s backdoor. Currently a ferry service is being offered from Beaufort. This

should be continued and should be leveraged. Beaufort is located in a serene and secluded

portion of North Carolina’s Inner Coastal Waterway. This area’s seclusion has allowed the

region to maintain its charm and small town feel.

The seclusion however has also contributed to limited tourism growth in the region. The current

drive time to Beaufort from its main tourism market (RDU) is almost three hours. The closest

town/city with a population of over 100,000 is about one hour away. A new highway and access

bridge are currently being built which will reduce the drive time from RDU and highway 95.

This new infrastructure has the potential to significantly increase traffic to the region. This

increased traffic will not be instantaneous, and it is critical that a targeted marketing and

educational campaign be developed to reprogram potential tourists and make them aware of the

reduce drive time. An image and branding campaign is also recommended. Beaufort has been

able to differentiate itself well from Atlantic Beach and Morehead City. However there is no

strong brand recognition outside of the region and Beaufort, NC is often confused with Beaufort,

SC and Beaufort County, NC.

In addition, the community/region needs to be prepared (infrastructure, amenities, attractions &

services) to accommodate the increased demand. This includes improving the roads and

sidewalks in and around downtown Beaufort. Front Street Village should try to connect as much

as possible to downtown and encourage the development of paths and trails that lead to

downtown. This connection should be physical as well as mental. The community and residents

of Beaufort should feel like FSV is Beaufort’s Front Street.

As well as working on developing the infrastructure, the community needs to make sure that the

region has the human resources (trained and educated) to serve and manage the influx of tourists.

Currently, the region has a lower mean income and an older population relative to the rest of

North Carolina. Also, there are limited high quality job opportunities in the region for younger

adults. It is important that Front Street Village, Beaufort, and the region work on ensuring that

the human resources match the needs of the tourist. A coordinated effort between Beaufort and

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the surrounding region should be initiated to enhance the human resource and economic

conditions in Carteret County.

In conclusion, Beaufort is positioned to grow as a tourist destination. People who visit the town

rate it highly for its small town feel and charm. Visitors come for Beaufort for the water and

history and if planned and managed properly, the community will sustain its allure and grow as a

tourist destination.

Potential partnerships

Partnerships are dependent on the type of resort and amenities built, as well as the cliental that it

is targeting. It is critical that all aspect of the establishment services and products

(accommodations, spa and F&B) match and complement the desires and expectations of the

visitors.

Maritime clubs: It is highly recommended that partnerships and networks be established

with both local and international sailing, yacht, kayak, high-end fishing and boating clubs

and organizations. Front Street Village should take advantage of its coastal location and rich

maritime history. These clubs and organizations could potentially host events, conferences,

and or races in Beaufort. In addition, these clubs and organizations could be a used as a

medium to advertise and market FVS’s products. Potential clubs and organizations that could

be partnered with include but are not limited to NCsail, Neuse Sailing Association, United

State Sailing Association, American Yacht Club, Quarterdeck Club, and Carolina Kayak

Club.

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Educational Institutions: Relationships with the local high school, community colleges, and

regional hospitality and tourism universities should be established to ensure the ability to hire

and retain high quality employees. Specialized service and skills will be needed depending

on the type of amenities and services provided. This is critical regardless of the final decision

on the rating of accommodations, restaurant, and spa. However the higher the scale, the more

the clients will expect. Training and efficiency of the staff will be critical to the success of

FSV.

Downtown Front Street Food and Beverage and Retail: FSV needs to connect with the

local community and especially establish a connection with downtown. Beaufort has a strong

sense of community and compared to other towns/cities, their residents are highly engaged

and are proud of their town. This is considered a strength of the community, but it should be

noted that if the residents feel as if they are not a part of the progress and should they feel

excluded, this could have a negative impact on the success of FSV. Residents should be

made to feel welcome and a genuine part of FSV. This will help reduce any resentment and

will help market FSV’s products and services. The community’s support and connectivity

will enhance the regions sustainability. Local ties should be nurtured and developed by FSV

planners. Partnerships with the local retail stores (e.g., Taylor’s Creek Grocery), museums

(North Carolina Maritime Museum), and historical sites (Beaufort Historic Sites) should be

established. Reciprocally, Front Street Village should reach out to the community by

sponsoring and supporting local festivals and events in Beaufort. Additionally, FSV should

commit to hiring as many local employees as possible. Local employees will help to bring

the charm and history of Beaufort to FSV.

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Local Farms and Purveyors: In addition to establishing ties with the local retail and

hospitality community, FSV should partner with local farms and purveyors for foods and

products. This will enhance the local economy while providing a local feel to the village.

Beaufort hosts a farmers’ market every Saturday (Olde Beaufort Farm’s Market) and

products from that event should be utilized in the FSV restaurant. There are also several

farms in and around Carteret County where products such as egg (Yellow Bear Farm), fruits

and vegetables (Sherry Lane Farms) and beef (Marshallberg Farm) can be utilized and

incorporated into the restaurant.

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Consumer trends in tourism for destination development

The research team conducted an extensive review of the current and future consumer trends in

tourism in the U.S. and in major potential market source regions for Front Street Village. The

team identified 10 consumer trends that will help Front Street Village understand the destination

experiences that consumers are seeking, so as to facilitate the design and development of

competitive and sustainable product/service offerings that will appeal to target markets.

1. Learning and Enrichment: One of the major trends in tourism today is the desire of the tourist

to have a learning experience as a part of their vacation. A recent survey found that half of North

American travellers want to visit art, architectural, or historic sites on vacations, while one-third

would like to learn a new skill or activity. Today’s travellers are seeking experiences that provide

them with a greater insight, increased understanding, and a personal connection to the people and

places they visit. Rather than choosing their vacation by the destination, many are first

determining the experiences they want, and then choosing the destination where these

experiences are located. Learning and enrichment travel refers to vacations that provide

opportunities for authentic, hands-on, or interactive learning experiences, featuring themes such

as adventure, agriculture, anthropology, archaeology, arts, culture, cuisine, education, forestry,

gardening, language, maritime culture, mining, nature, science, spirituality, sports, wine, and

wildlife – to name only a few! An excellent opportunity for Beaufort and Front Street Village to

capitalize on this trend would be to leverage the connection to Blackbeard, and position the

destination as ‘the home of Blackbeard’ - building up to the 300th anniversary of his death in

2018. Beaufort could then have an annual event to celebrate the connection.

2. Ethical Consumption: In the last few decades, responsible tourism has emerged as a

significant trend in the western world, as wider consumer market trends toward lifestyle

marketing and ethical consumption have spread to tourism. Tourism organizations are beginning

to realize that promoting their ethical stance can be good business as it potentially enhances a

company’s profits, management effectiveness, public image and employee relations.

Some experts have labelled these new consumer behavioural patterns as ‘guilt-free

consumption’, the theory being that a growing number of consumers are recognizing the damage

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done by their consumption to the planet, society, or themselves. But a mixture of indulgence,

addiction, and conditioning mean that most cannot substantially change their consumption. The

result is a never-ending guilt spiral which creates opportunities for brands tackling this guilt

spiral with consumers’ endless status seeking. High status, chic or fashionable products that are

visibly sustainable, ethical or healthy will meet these new demands. An example is the Tesla

luxury electric vehicle, positioned by marketers as high status but planet-friendly. The Model S

was the best-selling car in Norway in 2013.

Leisure travellers are also increasingly motivated to select a destination for the quality of its

environmental health and the diversity and integrity of its natural and cultural resources. Studies

indicate that environmental considerations are now a significant aspect of travellers’ destination

choosing process. According to a travel study conducted in 2012, the ‘green’ travel trend is

gaining momentum, as 71% of travellers surveyed said they plan to make more eco-friendly

choices in the next 12 months compared to 65% that did so the year previously. A study by the

International Hotels Environment Initiative and Accor reported that 90% of hotel guests would

prefer to stay in a hotel that cares about the environment. Similarly, J. D. Power and Associates’

North America Hotel Guest Satisfaction Study indicates that 75% of hotel guests would be

willing to take part in their hotels’ environmentally friendly initiatives. A critical element of

becoming an environmentally friendly hotel is adopting an environmental management system

that meets international standards and extends throughout the hotel and between the hotel, its

guests, local community, and suppliers. LEED, or Leadership in Energy & Environmental

Design, is a green building certification program that recognizes best-in-class building strategies

and practices, and serves as an important and widely used indicator of hotel/resort eco-

friendliness.

3. Nostalgia: Nostalgia has become a big driver in destination choice. Not only have tourists

become more interested in history, but the scale, richness, and diversity of the history they are

interested in have also expanded enormously in the past 30 years. Nostalgia tourism provides an

alternative to the present by recourse to an imagined past, a version of reality that people carry

around in their heads. A consequence of this emergence in nostalgia tourism is the increasing

desire to re-visit a specific country or city with a sentimental association instead of discovering

somewhere new. A 2007 survey in the UK found that 90% of British travellers use their holidays

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to re-visit a specific country or city with a sentimental association to their lives and the top

reason is a desire to re-live youth. More than a quarter (27.7%) said they go back to a destination

where they had a memorable childhood holiday while more than a fifth (21.5%) go to where they

lived or studied in their younger years.

A good example of this nostalgia tourism is the increasing popularity of resorts worldwide

celebrating the “Retro” period of the 60s, 70s and 80s. Having discovered a cache of old film

reels and a working projector, Lake Louise in Canada recently launched Throwback Thursdays

with online footage from the good old days. Film dating back to the 1960s shows fondues,

vintage haircuts, 70s disco and local characters. Retro-related competitions accompany the

Thursday segments, all leading up to Lake Louise’s new retro-themed end-of-season event. The

retro revival has infiltrated ski fashion with companies such as The North Face and Peak

Performance re-inventing the one-piece. Retro food has also made a bit of a comeback with

fancy fondue sets available in stores as well as raclette makers – a hot plate with paddles to cook

cheese underneath. Even resorts like Aspen, usually known for its gourmet food, are offering this

kind of hearty Alpine cuisine.

4. Health and Wellness: Consumers are increasingly health-conscious. In the U.S., the market

segment that is focused on health and fitness, is part of a consumer group labeled as the LOHAS

segment. LOHAS is an acronym for Lifestyles of Health and Sustainability, and describes an

estimated $290 billion U.S. marketplace for goods and services focused on health, the

environment, social justice, personal development and sustainable living. Research shows that

one in four adult Americans is part of this group—nearly 41 million people. According to

experts, these consumers are the future for many businesses and also the future of progressive

social, environmental and economic change. But their power as a consumer market remains

virtually untapped.

A more health-conscious society is often attributed to the influence of the baby boomer. Baby

boomers are generally healthier, financially better off, better educated, and more interested in

novelty, escape, and authentic experiences than were previous cohorts of older people. But

younger generations too are health and wellness focused. Millennials for example, are dieting

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less frequently than other generations, but consuming fewer calories daily. For this generation,

fresh and organic foods are in style. According to recent research, a large proportion of

millennials are motivated by the need to feel empowered and achieve tangible successes with

respect to their health and wellness. They spend money on gym memberships, running gear and

energy bars and seek out specific health foods like whole grain breads, nuts and seeds, and

quinoa. This generation is also driving the demand for self-tracking technologies. A recent

survey found that 40% of smartphone users want their phone to log all of their physical

activities, 59% would like to use a wristband to complement those measurements, and 56%

would like to monitor their blood pressure and pulse using a ring.

The tourism sector is responding to this trend with health and wellness centers springing up in

many destinations. For example, EVEN Hotels in Norwalk, Connecticut and Rockville,

Maryland provide various options for guests to maintain/improve a heathy lifestyle during the

stay. Each hotel room has designated in-room training zone, with available fitness facilities and

training guides and videos. A professional Athletic Studio with fitness instructor and group

classes are provided to fit guests’ routine customized by the staff. Natural, healthier meal choices

such as heart healthy or gluten-free meals are provided in the hotel as well. Resorts are also

responding to an increased demand for spiritual enlightenment whilst on a vacation. Sundance in

Utah for example, has several spiritual learning classes for visitors including a Mindfulness

Meditation class that, according to the resort, “will show you how to discover the nature of our

mind and begin to actualize its extraordinary potential for lasting happiness through the joyful

and heart-opening path of compassion and wisdom. This 30-minute class is designed to

strengthen your body, quiet your mind and bring your body, mind and spirit in harmony.”

Another Morning Yoga at Sundance class combines the most useful elements of Beginning and

Advanced Hatha, Vinyasa and Ashtanga Yoga “leaving you feeling empowered and awake.”

5. Customization: Consumers are increasingly looking for customized solutions that fit their

specific needs, becoming more engaged with product creation. In the travel industry, requests for

customized and personalized vacations are rising sharply, and both agents and traditional tour

operators are changing their businesses to meet that demand. In addition to booking air tickets

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and hotel accommodations, agents and outfitters today are arranging customized wine tastings,

visits to artisan workshops, and private after-hours tours of attractions such as the British crown

jewels and the Vatican.

At the Grand America in Salt Lake City, for example, Director of Guest Experience, Annie

Fitzgerald says “We ensure all employees are empowered to make each guest’s stay exceptional

and a personalized experience. If our employees learn something about our guests that will

enhance their stay, we will recognize and deliver. For example, if we learn upon arrival that a

couple is celebrating an anniversary, we will deliver a cake and card wishing them a Happy

Anniversary, likewise with honeymoon couples who receive chocolate covered strawberries and

a card. We recognize birthdays and we love taking care of guests who bring their children. We

often provide balloons or small welcome toys for the little ones.”

The Grand America also has a ‘Grand Ambassador’ whose role is to ensure that all repeat guests

are recognized appropriately. “Our operating system will track all of our guest preferences, and

our Ambassador then reviews all reservations and prepares for these requests,” says Fitzgerald.

Requests can range from a preference for a special room or view, to the type of linens a guest

requires to be comfortable. “All of these things make the Grand America truly a home away

from home and ensure the retention of our guests”.

6. Convenience and Speed: The increasing desire for convenience and speed is having a

greatimpact on various sectors of the tourism industry. In the restaurant sector, drive-through

sales are on the rise; in transportation, self check-in terminals are increasingly popular; and in

accommodation, business travellers are seeking convenient rooms for shorter stays. An example

of the latter is the hotel concept introduced at Heathrow and Gatwick airports in the U.K. Owing

much to Japanese ‘capsule hotels’, Yotel cabins are a cross between a hotel and a first-class

airline seat. Each self-contained cabin has a double rotating bed, and facilities include an ensuite

bathroom with shower, a flat-screen television and a pull-down desk. There is also the suggestion

that travel in the future will be geo-local, meaning that people will travel much closer to their

home – more within their homeland and continent, and less outside it. A new survey by the

European Commission found that EU residents generally stay in their home country during their

time off – 57% of people in the EU last year took a trip within their own country. Some 15% of

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all EU residents spent time on holiday in Spain in 2013, the most popular destination ahead of

France (11%) and Italy (10%), according to the survey.

7. Service Quality: Service quality has been increasingly identified as a key factor in

differentiating service products and building a competitive advantage in tourism. The process by

which customers evaluate a purchase, thereby determining satisfaction and likelihood of

repurchase, is important to all marketers, but especially to services marketers because, unlike

their manufacturing counterparts, they have fewer objective measures of quality by which to

judge their production. Many researchers believe that an outgrowth of service quality is customer

satisfaction. Satisfying customers has always been a key component of the tourism industry, but

never before has it been so critical. With increased competition, and with more discerning,

experienced consumers, knowing how to win and keep customers is the single-most important

business skill that anyone can learn. Customer satisfaction and loyalty are the keys to long-term

profitability, and keeping the customer happy is everybody’s business. Becoming customer-

centered and exceeding customer expectations are requirements for business success.

In Colorado, Vail Resorts, are always looking for ways to exceed expectations and drive loyalty.

“We have a program called Epic Wishes”, says Ashley Lowe, Senior Manager of

Communications. “Staff is empowered to seek out guests who mention on social media that

they’re coming to visit, and we find a unique experience to offer them to enhance their Epic

Vacation. Examples include providing birthday cake, giving rides in grooming cats to kids, and

offering a woman who injured herself on her first day of skiing a free spa treatment and dinner.”

Lowe acknowledges that these initiatives need to come from the top. She points to one General

Manager, Jonathan Fillman, of Mountain Thunder Lodge who routinely writes hand written

notes to his guests, and encourages his staff to as well. When a recent guest commented on

TripAdvisor that it was his seventh stay at Mountain Thunder Lodge and he loved it, Jonathan

sought him out, discovered he was still staying at the property, and asked him how he could

make his stay better. “The gentleman said he was going to hike a 14’er the next day and asked

Jonathan if he knew how to get there. Jonathan replied, “Do I know how to get there? I’ll take

you there!” Jonathan picked the guest up at 4am the next morning and did the full hike with

him.”

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8. Engagement and Connectivity with Technology: The Internet has upended how consumers

engage with brands to the extent that consumers are promiscuous in their brand relationships.

They connect with myriad brands through new media channels often beyond the marketer’s

familiarity or control. In the past, marketing strategies emphasized brand awareness and ultimate

purchase. However, after purchase, consumers may remain aggressively engaged, actively

promoting or assailing the products they have bought, and collaborating in the brand’s

development. As the world has entered the “Apps” phase, consumers are looking for apps across

all sectors of society to improve their everyday lives. Apps are particularly helpful and

convenient for travel and tourism activities such as finding restaurants, leisure activities, and

shopping.

Nowadays, consumers expect internet access everywhere, especially when they are traveling and

staying in a destination away from home. The fast global usage of smartphones has significantly

changed the way we communicate and use the internet. Smartphone users expect reliable Wi-Fi

connection for their mobile devices in destinations and hotels/resorts. Consumers are less

forgiving of connectivity issues, and inferior service will certainly hinder their satisfaction with

the destination and overall travel experience.

In addition to the apps and Wi-Fi connection, more advanced technology will attract consumers

to destinations and resorts due to the cutting-edge features that provide easier and convenient

connectivity. For example, Fingi technology allows guests to use a smartphone to customize and

control every aspect of their stay – from all in-room elements and instant ordering of hotel

services to direct communication with the hotel and the outside world. At check-in, hotel guests

receive a smartphone, which serves as the room key and is used for paperless payment, full

climate control, curtain, and lighting, operation of the entertainment system, and easy access to

guest services such as room service and laundry. Fingi technology has been used in hotels such

as Holiday Inn and Aloft Hotel in Thailand and Europe. Sheraton Hotel in Dubai also adopted

the “Smart Hotel” concept using iPad with Smart-G4 SBUS Automation to customize and

control individual hotel guest’s experience.

Resorts in Europe are also responding to consumer demand for connectivity, with resorts like

Alpendorf and Sölden in Austria installing free Wi-Fi access points within their entire ski areas.

Alpendforf’s website boasts “with over 300 Wi-Fi hotspots in the Ski amadé you will be able to

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access the internet no matter where you are. This innovation is not just a gimmick for internet

junkies. Using any Wi-Fi-compatible device (Smartphone, iPad, laptop), you can now access

your social networks, send photos and emails or upload an app such as the Ski Amadé Guide

with additional services and information where you need it most: mountain side!” Val Thorens in

France also offers free Wi-Fi through Aerohive Wi-Fi terminals. “We want to offer our users

quality optimal service in order to improve their stay in the resort. We anticipate their needs by

providing them with Wi-Fi access in our ski lifts”, said Eric Bonnel, SETAM ski lift company's

sales and marketing manager.

9. The Blurring of Business and Leisure Travel: The lines between business and leisure travel

are becoming increasingly blurred. A recent Expedia study found that 56% of millennials extend

their business trips into leisure trips. Mobile devices are having a profound effect on the

traditionally defined silos between managed and unmanaged travel, with 43% of international

travelers taking their mobile professional devices with them on holiday or on weekend trips. This

presents new opportunities for airlines, hotels and destinations alike, all of which have to

configure their services to be flexible. Conference and meeting planners also have to be

cognizant of these changes, ensuring that they incorporate an element of leisure when they plan

their meetings.

The Edelweiss Hotel at the foot of the Alberg in Austria for example, promotes itself as the ideal

conference or business incentive destination. Promotional material promises seminars and

incentives in the Arlberg that “will leave an unforgettable impression on all participants.

Enhance motivation, loyalty, and team spirit in an Incentive in the Arlberg: While skiing in,

while dining together and while relaxing and celebrating in the bars and lounges.” Tour operators

too are catering for travelers who want to combine business with leisure time. Travelplan Ski

Holidays, based in Australia, for example, offers a range of conferences for professionals in

some of the world's best ski resorts. Over the years Travelplan have offered a range of specially

designed conferences at ski resorts such as Aspen, Fernie, Whistler-Blackcomb, Sun Peaks &

Steamboat “that ensure you maximize you skiing time whilst you learn”.

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10. Experiences: A key innovation in today’s business is experiences. Firms across a variety of

industries from health care to airlines to automobiles are developing strategies around providing

meaningful customer experiences. The ‘experience economy’ was a term coined by Pine and

Gilmore to describe the business of selling experiences. They described experiences as a fourth

economic offer, one that is distinctly different from the traditional commodities, goods and

services that drive economic growth. Using a theatrical analogy they describe ‘services’ as the

stage used to create experiences and ‘goods’ as the props that are used in planning and

sequencing a series of memorable events. Pine and Gilmore provide examples of how large

companies like Walt Disney welcome guests, engage visitors, and provide an endless array of

interactive experiences.

In an environment of ever more sophisticated consumers, those who deliver memorable customer

experiences consistently create superior value and competitive advantage. Some of the benefits

of delivering experiences are happy customers, repeat business, increased sales, enhanced brand

identity, free marketing via word of mouth referrals and the creation of an emotional bond with

customers. The benefits of creating experiences for customers is gaining momentum and

demonstrating its business value in the tourism industry. In 2002, the World Tourism

Organization reported a shift from active holidays to holidays as an experience. A survey

sponsored by America Express found that the number one ranked ‘most-memorable experience’

for consumers was connected to a holiday. Demand is growing for authentic travel that engages

the senses, stimulates the mind, includes unique activities, and connects in personal ways with

travelers in an emotional, physical, spiritual or intellectual level. A related trend is ‘experience

caching’ whereby consumers continually collect, store and display their experiences for private

use, or for friends, family, even the entire world to peruse.

Tourism destinations are responding to these demands, as they are naturally keen to attract new

customers, repeat guests, and meet the needs of niche and mainstream markets interested in

experiential travel. Destinations should serve as experience providers who sequence and stage

carefully choreographed activities, personal encounters, and authentic experiences, designed to

create long lasting memories, engaging travel, and increase customer loyalty. A good example

can be found at the Washington School House in Park City Utah. The hip town's newest luxury

boutique hotel offers guests one of the most unusual winter activities with yoga deep inside a

10,000-year-old crater at The Homestead Resort. The instructor demonstrates yoga poses from

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the dock while guests move and bend on paddleboards that float in the 90-plus-degree natural

therapeutic pool. And to satisfy demand for ‘experience caching’, the hotel produces a motion

picture for guests with a snapshot of their entire trip. A videographer snaps photos and film a

day’s worth of live footage, and following the visit, guests receive their very own edited feature

film and photo book.

Acknowledgements

Special thanks to the following individuals and organizations that have contributed to this

research and report:

Bucky and Wendi Oliver, Front Street Village

Stedman Stevens, Front Street Village

Carol Lohr, Crystal Coast Tourism Authority

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Appendices

Appendix A – Resource Audit of Beaufort and Region

Tourism Sites in Beaufort North Carolina

Site Name Categories

Baymont Inn & Suites Accommodations

County Home B & B Accommodations

Beaufort Inn & Suites Accommodations

Inlet Inn Accommodations

Beaufort Harbour Suites Accommodations

Houseboat Rentals-The Crystal Accommodations

Bakery At Spouter Inn Accommodations

The Cedars Inn Accommodations

Langdon house Bed & Breakfast Accommodations

Pecan Tree Inn Accommodations

Ann Street Inn Accommodations

The Spouter Inn Food & Beverage

Front Street Grill at Stillwater Food & Beverage

Old Salt Restaurant & Oyster Bar Food & Beverage

Royal James Café Food & Beverage

Finz Grill Food & Beverage

Cru Wine Bar & The Wine Store Food & Beverage

Aqua Restaurant Food & Beverage

Clawson's 1905 Restaurant Food & Beverage

Dockhouse Restaurant Food & Beverage

Ribeyes Steakhouse Food & Beverage

Plaza Mexico Bar & Grill Food & Beverage

Boardwalk Café Food & Beverage

Queen Anne's Revenge Food & Beverage

Beaufort Grocery Co Food & Beverage

Blue Moon Bistro Food & Beverage

No Name Pizza and Subs Food & Beverage

Rolands Barbecue Food & Beverage

Outerbanks Seafood Food & Beverage

Krystal's Treasures Food & Beverage

Beaufort Café Food & Beverage

Burger King Food & Beverage

Captain Rod's Lowcountry Tours Activities

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Beaufort Historic Site Activities

Double-Decker Bus Activities

The Mullet Line Trolley Activities

Hungry Town Bike Tours Activities

CrystalLady Cruises Activities

Good Fortune Sailboat Activities

Island Ferry Adventures Activities

Lookout Cruises Activities

Pirate Cruises on the Renegade Activities

Port City Tour Company Activities

Southern Air at MRH Activities

Twisted Trolley Activities

Waterbug Tours Activities

Beaufort Ghost Walk Activities

The Wild Horse & Shelling Safari Activities

Discovery Diving Co. Activities

North River Golf Club Activities

Winyah Bay Heritage Festival Festival and Events

Jumble Sale Festival and Events

Jim Carson in the Mattie King Davis Art Gallery Festival and Events

Christmas Candlelight Tour Festival and Events

Christmas Concert Vivaldi Project Trio Festival and Events

Community Thanksgiving Feast Festival and Events

Kindergarten Thanksgiving: Week 1 Festival and Events

Beaufort Wine and Food Weekend Festival and Events

Easter Egg Hunt Festival and Events

Beaufort Historic site Publick Day Festival and Events

Olde Beaufort Farmers’ Market Festival and Events

The Beaufort Pirate Invasion Festival and Events

Christmas Flotillas Festival and Events

Train Show Festival and Events

Historic Beaufort Road Race Festival and Events

Beaufort Old Homes & Garden Tour Festival and Events

North Carolina Maritime Museum Cultural and Historical

Attractions

Core Sound Waterfowl Museum & Heritage Center Cultural and Historical

Attractions

Beaufort Historic Site Cultural and Historical

Attractions

Robert W. and Elva Faison Safrit Historical Center Cultural and Historical

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Attractions

Josiah Bell House Cultural and Historical

Attractions

Samuel Leffers Cottage Cultural and Historical

Attractions

John C. Manson House Cultural and Historical

Attractions

Carteret County Courthouse Cultural and Historical

Attractions

Old County Jail Cultural and Historical

Attractions

Apothecary shop and Doctor's Office Cultural and Historical

Attractions

R. Rustell House Cultural and Historical

Attractions

Old Burying Ground Cultural and Historical

Attractions

Rachel Carson Reserve Natural Attractions

Cape Lookout National Seashore Natural Attractions

Fort Macon State Park Natural Attractions

Freedom Park Natural Attractions

Crystal Coast Beaches Natural Attractions

Croatian National Forest Natural Attractions

Newport and Neuse River Natural Attractions

North Carolina Inter-Coastal Waterway Natural Attractions

Barrier Islands Natural Attractions

Back, Bogus and Core Sounds Natural Attractions

Ceder Island Refuge Natural Attractions

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Appendix B - Strengths and Weaknesses of Beaufort and Region

Strengths –

4. Rich history

o Third oldest city in North Carolina

o Maritime history

o Pirate history (Blackbeard and Queen Ann’s Revenge)

o 12-block historic district

5. Location

o NC Innercoastal Waterway

o Near a major port

o Soon to be have direct access for RDU and 95 market

o Ferry access to Sharkerford Island and Cape Lookout

o Close Proximity to many well-known and established outdoor recreational

opportunities

Barrier Islands

Cape Lookout National Seashore

Rachel Carson Preserve

Cedar Island National Refuge

Back Sound and Bogue and Core Sound

Croatian National Forest

Newport and Neuse River

Crystal Coast beaches

6. Maritime Culture

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o NC Maritime Museum

o Duke University Marine Laboratory

o National Oceanic and Atmospheric Administration Center

o Well established recreational and boating culture

7. Michael J. Smith Field Airport (Regional Airport)

8. Strong community engagement and local pride, especially the older generation

o Well connected an politically powerful local citizens

9. Quaint downtown with some local eclectic restaurants, retail and B&B’s

10. Voted “America’s Coolest Small Town” by Budget Travel Magazine in 2012

11. Well established differentiation between Beaufort and Atlantic City Beach/Morehead

12. Well established year round festival and events

Weaknesses –

Location

o Not directly on the beach

o Currently no direct route to destination from the RDU and 95 markets, this will

change soon. Marketing and educational programs will need to be conducted to

reprogram potential tourist to visit. Just building a highway is not enough. Efforts

need to be made to educate the tourist about the easy access.

o Closest town/city with more than 100,000 people is one hour away

o Poor coordination between communities with respect to economic and tourism

development

o Limited lodging options

o No nationally known or corporate accommodations

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Population

o Compared to North Carolina, higher level of older adults (65yr and older) and

o Limited opportunities (employment, education, extra-curricular activities) for

youth and younger generation

Non-Water based recreation opportunities are limited

o Limited trials, walking paths and bike paths. Most of the communities is

accessible by car or by walking/biking on the street.

o Limited activities for children and young adults

o Limited nightlight/bars/clubs

Infrastructure development needed.

o Some waterfront and downtown building need repair and renovations.

o Also, road and sidewalks in downtown need to be replaces or repaired.

o Above ground power lines which cause visual degradation to the scenic landscape

Lacks a well-known brand, often confused with Beaufort SC and Beaufort County NC.

Extreme distribution of wealth (Average income is $47,780, 12.1% making less than

$10,000 and 3% over $200,000)

Limited event space

o Limited upscale facilities

o Limited space for large groups and large weddings