Potential for Tourism Development in Eastern Kentucky

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Potential for Tourism Development in Eastern Kentucky Economics Potential for Tourism Development in Eastern Kentucky Prepared for Kentucky Chamber Foundation October 8, 2013 Table of Contents Strategic Recommendations ..................................................................................................................... 1 Possible Next Steps ...................................................................................................................................... 2 Conclusions ................................................................................................................................................... 4 Introduction ................................................................................................................................................. 5 National Tourism Trends ............................................................................................................................ 7 Trip Duration and Activities ........................................................................................................................... 8 Trip Spending ................................................................................................................................................ 9 Traveler Demographics and Preferences ................................................................................................... 10 Demographic Trends ................................................................................................................................... 11 Economic and Cultural Shifts ...................................................................................................................... 13 Emerging Niche Markets ............................................................................................................................. 15 Implications for Eastern Kentucky ............................................................................................................... 16 Kentucky Tourism Trends ........................................................................................................................ 17 Visitor Profile ............................................................................................................................................... 17 Eastern Kentucky Tourism Industry ............................................................................................................ 23 Implications for Eastern Kentucky ............................................................................................................... 24 Tourism Demand Generators .................................................................................................................. 29 Demand Generators .................................................................................................................................... 29 Tourism Demand Generator – Resorts ....................................................................................................... 33 Travel Demand Generator – Hotel with Indoor Waterpark ......................................................................... 51 Tourism Demand Generator – Destination Retailer .................................................................................... 65 Tourism Demand Generator – Retail Outlet Malls ...................................................................................... 73 Implications for Eastern Kentucky ............................................................................................................... 78 Tourism Destination Areas ...................................................................................................................... 81 Branson, Missouri ....................................................................................................................................... 81 Gatlinburg, Tennessee ................................................................................................................................ 85 Bentonville, Arkansas .................................................................................................................................. 89 Implications for Eastern Kentucky ............................................................................................................... 94 Other Elements to Consider..................................................................................................................... 95 Alcohol Sales .............................................................................................................................................. 95 Broadband ................................................................................................................................................... 98 Marketing................................................................................................................................................... 101 Potential State Funding Sources ........................................................................................................... 103 Kentucky Tourism Development Act ......................................................................................................... 103 Tax Increment Financing (TIF) .................................................................................................................. 104 State Retirement Plans ............................................................................................................................. 106 Page i Table of Tables Table 1 – Travel Party Characteristics by Age, 2005 ................................................................................. 12 Table 2 – Travel Spending in Kentucky by Region (in millions) .................................................................. 17 Table 3 – Kentucky Visitor Trip Purpose ..................................................................................................... 19 Table 4 – Length of Stay in Kentucky ......................................................................................................... 19 Table 5 – Type of Overnight Accommodations ........................................................................................... 19 Table 6 – Reason for Travel to Kentucky .................................................................................................... 20 Table 7 – Trip Activities Among Kentucky Visitors ..................................................................................... 20 Table 8 – Mode of Transportation to Kentucky ........................................................................................... 22 Table 9 – Kentucky Travel Party Size ......................................................................................................... 22 Table 10 – Participation in Activities and Trip Motivators ........................................................................... 30 Table 11 – Top Trip Activities...................................................................................................................... 31 Table 12 – Top Trip Motivators ................................................................................................................... 32 Table 13 – Paid Overnight Accommodations as Trip Motivators ................................................................ 35 Table 14 – Location of Casino Visits, 2009 ................................................................................................. 36 Table 15 – U.S. Waterparks, 2012 .............................................................................................................. 52 Table 16 – Kentucky Waterparks, 2013 ...................................................................................................... 53 Table 17 – Waterparks at U.S. Resorts, 2012 ............................................................................................ 53 Table 18 – Wisconsin Dells Visitor Spending ............................................................................................. 60 Table 19 – Great Wolf Resorts, Inc. Operations ......................................................................................... 63 Table 20 – Largest Outlet Center Portfolios, 2012 ..................................................................................... 74 Table 21 – Dry/Wet Status of Counties in Eastern Kentucky (as of January 30, 2013) ............................. 97 Page ii Table of Figures Figure 1 – Counties in Eastern Kentucky Region ......................................................................................... 6 Figure 2 – Domestic Person Trips1 by Trip Purpose ..................................................................................... 7 Figure 3 – Trip Type by Duration, 2011 ........................................................................................................ 8 Figure 4 – Activities by Type of Trip .............................................................................................................. 9 Figure 5 – Travel Spending in the U.S. ......................................................................................................... 9 Figure 6 – Average Spending by Type of Trip, 2011 .................................................................................. 10 Figure 7 – Trip Type by Age Group, 2011 .................................................................................................. 11 Figure 8 – U.S. Population Projections (millions).......................................................................................
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