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Securing the Industry's Future

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Securing the Industry's Future SECURING THE INDUSTRY’S FUTURE BY LEVERAGING SPORT TOURISM FROM WITHIN Photo courtesy of Rockford Area CVB Area of Rockford courtesy Photo West Rock Wake Park, Rockford, IL SportsPlanningGuide.com TABLE OF CONTENTS Page 3-4 SPORT TOURISM COSMOS • Dynamic Growth • Beyond Economics • Place-making, Experiential Marketing and Local Product Development Photo courtesy of Rockford Area CVB Area of Rockford courtesy Photo Page 5-7 UNIVERSAL FINDINGS • Education & Research • “Youth Sports Inc.” • Participation in Decline • Holistic Leveraging Page 7-9 CREATE YOUR FUTURE, LOCALLY • Regionalization of Sport Tourism • The Triple Bottom Line • An Anomaly and Model BMO Harris Bank Center, Rockford, IL By Nicholas C. Povalitis, CDME n recent years, sport tourism has enjoyed for industry sustainability among sports business record-breaking growth driven largely out experts. Given their inherent intermediary of the multi-billion dollar youth segment. role between communities and event owners, Destinations must also strategically plan destination sport tourism entities are uniquely Ifor the eventual contraction of the space. positioned to leverage events and the influx Tourism is trending toward a $1 trillion industry of multi-purpose sports complexes locally and within five years and the Sports Events and regionally to enhance access for locals. As a Tourism Association (Sports ETA) is reporting complementary effort to traditional tourism 37 percent growth since 2013 in sports event marketing, this inside out sport tourism approach visitor spending. However, overall youth sports can help reverse the downward trend in youth participation rates have dropped consistently participation, ultimately helping to secure the over the last decade, data that causes concern industry’s future. 2 SPORT TOURISM COSMOS In the sport tourism cosmos, an industry that experienced a visitor spending increase of nine percent to a record $11.4 billion last year (National Association of Sports Commissions [NASC], 2017), today’s expansion persists alongside the expedient construction of multi-purpose sports complexes nationally. Since 2003, more than $6 billion in planned and operational sport, entertainment and recreational facilities have been served globally by industry specialist The Sports Facilities Advisory (SFA) (SFA, 2019), and the SPORTS ETA continues to grow its membership base of destinations and sports commissions from 356 to 530 the last 10 years, and of event owners and national governing bodies from 94 to 193 during the same period of time (Kidd, 2019). Despite the dynamic growth, destination “By the very nature of their ultimate organizations must prepare for an eventual contraction and long-term sustainability of sport intermediary role, destination sport tourism. Specifically, youth sports participation tourism organizations are in the midst of is on the decline nationally, as rates have dropped four points since 2011 (The Aspen a present-day juxtaposition of feast and Institute Project Play, 2019). By the very nature famine within youth and travel sports.” of their ultimate intermediary role, destination sport tourism organizations are in the midst Mercyhealth Sportscore One, Rockford, IL of a present-day juxtaposition of feast and District Park of Rockford courtesy Photo famine within youth and travel sports—allowing destinations to help dictate a positive long- suggests this blended approach is the way of the term outcome for sport tourism. As outlined future for sustainable sport tourism. The industry’s in the most recent DestinationNEXT Futures most recent research pioneered by Stoll (2018) Study, four of the top five industry strategies studies the content of mission statements from are steeped in resident-centric programming, sport tourism entities, results that certainly reflect including trends where destinations will: place the importance of economic development (69.92% greater emphasis on engaging with customers of respondents listed impact in their mission in two-way conversations; play a more central statements). Beyond economics, missions also role of in-market advocacy; be more involved in focus on destination branding (52.63%), socio- broader economic-development projects and cultural leverage (46.62%), business development initiatives; and connect the visitor experience with (27.07%) and venue engagement (15.04%) (Stoll, the quality of life of residents in their respective 2018). In short, measuring successful sport communities (Destinations International, 2017). tourism involves visitor spending, as well as The most successful destinations understand the local engagement—contrary yet necessary to mutual significance of the resident and visitor, and complement the traditional outside-of-50 miles the data pertaining to youth sports participation tourism marketing efforts. 3 Sport tourism dates back as far as 900 B.C. tourism organizations to plan tactically, at times when the Ancient Greek Games were produced devising community strategic plans 5-10 years by the Romans to shift the populace’s focus ahead to anticipate the trends and realities of the away from difficult living conditions (Gibson, future. Considering the overall downward trend of 1998). In 684 B.C., the Games extended to three youth sports participation, that future planning for days, and they were extended another two days destination sport tourism is best curated closer to in the fifth century B.C. (International Olympic home through appropriate research, education, Committee [IOC], 2019). The ancient Olympics hiring practices and the execution of intentional were leveraged for the benefit of the resident, local programming. while the focus of the modern industry is largely limited to economic impact analyses of such events (Gibson, 1998). However, researchers contend it remains difficult to accurately assess sport tourism’s economic impact (Gibson, 2019), and Destinations International (DI) is in the process of shifting from merely heads in beds metrics to allow for further industry expansion (Kidd, 2019), including continued efforts inplace- making, experiential marketing and local product development (DI, 2017). Developed by Tourism Economics, the latest DI economic impact calculator underscores locality by utilizing custom inputs specific to each destination to comprehensively measure impact of events on businesses, employment, income and local taxes (DI, 2019), helping to cultivate a clearer frame of reference related to tourism’s local impact. Tourism growth is trending extremely favorably—$1 trillion USD in visitor-related expenses is projected over the next five years (Visa Consulting & Analytics, 2019)—and the sports segment, which has increased by 37 percent since 2013 (SPORTS ETA, 2019), is undoubtedly “It is the responsibility of sport tourism a contributing factor of the increase. Growth organizations to plan tactically, at times is expected to continue for the foreseeable future, but Chalip (2004) suggests leverage devising community strategic plans as the ultimate reinforcer of sustainable sport 5-10 years ahead to anticipate the tourism. Before the sport tourism bubble bursts, leveraging is a proactive approach that allows for trends and realities of the future.” strategy and forecasting, event analyses related to community fit, and the agility for organizations UW Health Sports Factory, Rockford, IL to learn and adapt. It is the responsibility of sport CVB Area of Rockford courtesy Photo 4 UNIVERSAL FINDINGS peace of mind about the organization’s capacity In successful tourism planning, data drives to understand event needs and execute better business decisions. Historically, academics and than a CVB. Kidd (2019) adds that the goal of industry experts have repeatedly suggested an SPORTS ETA is to improve the quality of its overall lack of research dedicated to sport tourism, education outreach and programs to a level and the absence of globalized information of the where CVB-led sport tourism and stand-alone segment is even a barrier to industry progress sports commissions are perceived the same. (Pigeassou, 1997). There also remains a lack of Though no specific human resources (HR) educational focus for sport tourism, though recent research exists, HR professionals rooted in efforts have been made for industry-specific tourism have taken notice to the competitive schooling as exemplified by St. Thomas University nature of the industry, coupling multi-faceted in Miami Gardens, Florida, where a masters skillsets in sales, marketing and event operations of business administration in sports tourism is with high emotional intelligence as indicators for offered. The STU MBA program, an anomaly for sport tourism success (Brich, 2019). With more sport tourism post-secondary education, has research and increased sophistication, the hiring received favorable reception due largely to its process gets more competitive—and destinations, south Florida location, where tourism has long event operators and the industry wins. thrived (Epling, 2019). Additionally, the inclusion In addition to limited sport tourism-specific of destination sport tourism as an approved education and research, modern studies suggest final exam topic for the Certified Destination the commercialization of travel sports, a reality Management Executive (CDME) program through that has driven increased competition in sport Destinations International (DI) signals a desire for tourism (Schwark, 2007), is a significant challenge concerted efforts of strategic planning specific for destinations.
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