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A Muskoka Airport Marketing and Business Development Strategy

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A Muskoka Airport Marketing and Business Development Strategy A Muskoka Airport Marketing and Business Development Strategy November 2003 Final Report The Muskoka Airport Marketing and Business Development Strategy July 2003 The District Municipality of Muskoka In partnership with FedNor Standard Limitations This report has been prepared for the exclusive use of our client, namely the District Municipality of Muskoka acting for itself and others. Any distribution and use of this report by third parties are our client’s sole responsibility. The discussion in this report is based on the proposed scope of work, the extent of our site observations, interviews, research and other information available to us to date. The material in this report reflects KMB Aviation Consulting Group Inc.’s best judgement in light of the information available to it at the time of preparation. Any use which a third party makes of this report, or any reliance on or decisions to be made based on it, are the responsibility of such third parties. KMB Aviation Consulting Group Inc., accepts no responsibility for such damages, if any, suffered by any third party as a result of decisions made or actions based on this report. 2 TABLE OF CONTENTS 1. Executive Summary 3 2. Introduction 8 3. Background 10 4. Facilities Condition Report and Budget Review 11 5. Business Development Strategy 14 6. Muskoka Airport Marketing Plan 24 7. Conclusions and Recommendations 36 Appendices A. Action Plan B. Contact List C. Canadian Charter Companies D. US Charter Companies E. Ontario Aircraft Maintenance Companies F. Transport Canada Material G. Development H. Marketing I. Facility Condition Report Detail J. Miscellaneous _________________________________________________________________________________________________ The Muskoka Airport Marketing and Business Development Strategy November 2003 3 1. EXECUTIVE SUMMARY This report provides a business development and marketing strategy for the airport. It explains how Muskoka Airport can position itself as being different from other airports and how it can meet its full potential through a change in approach to its business and the marketing of that new business approach. The airport has many attractive features that can be used for marketing purposes ultimately leading to more business activity. The methodology used in the study encompassed four phases. Phase 1 consisted primarily of data collection and review. Phase 2 involved key meetings, contact with appropriate authorities and information sources and identification of opportunities. Phase 3 comprised a detailed analysis of information obtained and Phase 4 involved the preparation of an action plan and the final report. The District Municipality of Muskoka owns and operates the airport. The Muskoka Airport Implementation Committee provides oversight and recommends policy direction for the airport to Muskoka District Council. The airport is managed through the Planning and Economic Development Department. Revenues for the airport accrue from land sales, land lease payments, landing and parking fees and aviation fuel sales. The District of Muskoka supports the airport's operations and capital budget revenue shortfalls. As part of the study a general review of the condition of the facilities and its infrastructure was undertaken. The Airport Terminal Building has been given only a Fair rating in the review with replacement or major rehabilitation recommended within the next decade. Rather than replacing the building it is suggested that the Terminal Building be housed in the Norwegian-Canadian Memorial and Cultural Centre. By having only one public facility on the airport savings can be found in operations and staffing for both facilities. The maintenance garage and sand storage building is in poor condition and should be considered for replacement. The airfield electrical system should be examined by a qualified airfield electrician to determine adequacy of the system and required upgrades. _________________________________________________________________________________________________ The Muskoka Airport Marketing and Business Development Strategy November 2003 4 The main runway is in reasonable condition and is slated for re-construction in 2010. The cross-wind grass runway is also in reasonable condition. Of principal concern is the capital budget. Inadequate funding for the main runway re- construction in 2010 is provided. Preliminary estimates have determined that provision for more than $4,000,000. is required rather than the $2,000,000. figure stated in the budget. The operating budget does not carry adequate funding for a marketing program as described in this report. The study was not able to identify any ongoing operating budget support programs from the federal or provincial level. The business development strategy has two important elements. The first element is focused on opening up the eastern side of the airport lands to development. The second element is the stimulation of existing business. The attractiveness of the east development land, east of Runway 18/36, is its spaciousness and generally level terrain. These attributes permit the airport to offer any size lot to potential aviation businesses and good access to the main runway. An initial layout of the east development lands has been done. The layout contains provision for a roadway, a taxiway and 10 lots of varying size. Provision of capital funding for the development area, its taxiway and roadway access has been discussed in detail with FedNor and the Northern Ontario Heritage Fund offices. The project as envisaged will meet the their guidelines for such projects on a shared financing basis. Nothing in the east development area compromises the development options defined in the Master Plan prepared by LPS Aviation in 1999. The employment base and capacity for growth at the existing businesses with some exceptions is limited to some degree. Growth of these businesses will tend to reflect the overall aviation economy, competitive forces and the skill of the entrepreneur operating the business. However, there may be some opportunity for business expansion and growth into the proposed East Development Lands. Existing businesses should be used to assist in marketing the airport. _________________________________________________________________________________________________ The Muskoka Airport Marketing and Business Development Strategy November 2003 5 Travel to individual cottages through the airport can be stimulated by an improvement of the awareness of the airport. However, a convenient ground transportation system must exist to get the traveler to and from their holiday destination. Therefore, when a more intensive airport marketing program is implemented the car rental agencies should be invited to participate in the campaign. Interviews were carried out at selected major resorts. The resorts surveyed were the Taboo Resort Golf and Conference Centre, the Delta Sherwood, and the Deerhurst Resort. The research was aimed at identifying current business linkages between the resorts and Muskoka Airport, and determining whether such connections might be mutually beneficial. The close proximity of the resorts to the airport would lead one to expect an informative relationship would exist, and each would be knowledgeable of the other. Based upon our research this was not the case. The resorts indicated an interest in investigating mutual airport-resort business building practices. It is recommended that the airport consider the inclusion of appropriate resort management personnel as part of a wider public consultation process, designed to gain/maintain support for the airport and its initiatives. Muskoka Airport is like many other small airports in Ontario. It has a limited tenant business base supported by relatively small communities. The marketing analysis attempts to magnify the unique capabilities of the airport as compared to others and define the best method of achieving business opportunities. The marketing plan is based upon discussions and interviews with informed persons and research on market dynamics and marketing presentation. It is based on a business standard SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats). The analysis is described in detail in the full text of the report. The resulting target markets can be divided into two segments. They are the land development market and the tourism market. The primary land development market should be focused on attracting new or expanding existing aviation-related businesses including: _________________________________________________________________________________________________ The Muskoka Airport Marketing and Business Development Strategy November 2003 6 aircraft manufacturing; aircraft servicing; aircraft repair and overhaul; and, aircraft painting. The tourism market is a natural fit for the airport and it is already involved in a large way with that industry. However, there could be closer coordination between the tourist market providers, the tourist agencies and any others involved with the industry. The marketing tactics developed include the creation or enhancement of the Muskoka identity or brand, having airport properly listed and promoted in all economic development and tourist material and the coordination of airport brochure material with other promotional material. The sales strategy recommends that the Airport Manager direct all "sales" or business- development activity. He will require some administrative assistance in order to more effectively take on this function.
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