Visit Tri-Valley REGIONAL TOURISM ASSET ASSESSMENT Prepared for: Visit Tri-Valley 5075 Hopyard Rd, Suite 240 Pleasanton, CA 94588 Solutions for your competitive world. Visit Tri-Valley Table of Contents Executive Summary 3 Part 1: Understanding Tourism Assets 7 Part 2: Existing Regional Assets 13 Part 3: Pipeline Projects 21 Part 4: Tri-Valley Tourism Asset Gaps 23 Part 5: Developing a Tourism Asset Strategy 44 Part 6: Summary Comments 45 Appendix 46 Appendix 1: Completed interviews 47 Appendix 2: Sources 48 Appendix 3: Project Overview 49 Appendix 4: Scope of Work 50 2 | P a g e Visit Tri-Valley Executive Summary The following report was developed in an effort to improve Tri-Valley’s long term competitive position in the Northern California tourism market> the report sought to identify current tourism related destination assets as more importantly potential tourism asset gaps. The report also seeks to define a tourism strategy that can improve the competitive position of Tri Valley over the long term. The report identifies several key challenges including the lack of perception the region has as a destination and that it is seen by some to be a series of communities. Additionally, the areas have significant differences between them. For example, Livermore, with its downtown area and wineries, is a very different experience to San Ramon, which generates a significant level of corporate travel. Moving forward Tri-Valley needs to consider three specific steps with regard to its assets. 1. Continue to build its brand assets in order to create value for all of the areas within the region. 2. Continue to promote all of the area’s assets and experiences. 3. Add both tangible and intangible assets over the long and short term. The report identifies a number of assets needs both tangible and intangible. Tangible Asset Needs 1. Develop a Broader Lodging Supply Mix One of the most frequently mentioned needs expressed by those interviewed was the need for a broader lodging supply mix to attract different visitor segments 2. Develop Additional Meeting and Convention Space The ability to attract more business travel for meetings and conferences is impacted by the lack of a significant meeting and convention facility capable of handling larger groups for corporate, association or industry gatherings as well as limited availability mid-week lodging supply given the current occupancy rates. Tri-Valley’s lack of a confined city space is also a disadvantage. 3. Leverage Existing Performing Arts and Cultural Venues The desire to upwardly impact leisure visitation in the Tri-Valley region must focus on demand generators that draw visitors based upon some affinity. An additional demand generator that can be looked to is performing arts and cultural events. 3 | P a g e Visit Tri-Valley 4. Additional Recreation Facilities Stakeholder interviews identified the need for additional indoor and outdoor sports facilities that would both provide benefits for local residents as well as serve as a tourism trip generator to the region 5. Infrastructure Related Opportunities Transportation system(s) A number of stakeholder interviews identified transit as a significant concern, one that has a negative impact on the potential for tourism. San Ramon City Center One of the biggest potential opportunities within the region is the development of the San Ramon City Center. Signage & Wayfinding One area of need that was expressed by a number of stakeholders was the need for signage and wayfinding. 6. Cultural Assets Several interviews identified the need for additional cultural assets including museums, theaters and performing arts venues Intangible Assets Needs 1. Data and Information One of the key intangible asset needs is comprehensive tourism economic and market research. 2. Soft Tourism Infrastructure Another important intangible asset that needs to be added to Tri-Valley area is that of region wide organizations that can be a part of the tourism infrastructure. Below are the types of organizations that can be of assistance in growing tourism. Tri-Valley Regional Arts Committee – A regional arts committee could provide significant support by developing programming that can be presented in a regional context. Tri- Valley Region Lodging Association – A unified lodging industry association that meets periodically to discuss trends, market opportunities and market challenges while working with Visit Tri-Valley can be an important part of assisting the organization in being as effective as possible . 4 | P a g e Visit Tri-Valley Performing Arts Facility Association – An organization that includes each of the performing arts facilities could provide an integrated calendar that could be presented region-wide and also provide a cohesive approach to entertainment within the region. Sports Commission- This organization would unify regional sports facilities in an effort to attract tournaments, swim meets track meets etc. in an effort to generate weekend occupancy. 3. Marketing Related Assets Within the conversation on tourism assets, a number of marketing related issues were identified. They include the following: Visitor information – One of the opportunities to present a consolidated regional experience is to provide an integrated approach to branded visitor information. More funding for marketing – Currently Visit Tri-Valley is funded by a Tourism Business Improvement District (TBID) which has become a funding mechanism for over seventy destinations throughout California. It will be important for Visit Tri-Valley’s long term competitive position to also increase its available funding. Additional marketing/brand development – Several stakeholders identified the need to increase the awareness and presence of the Tri-Valley brand. More diversified marketing – In an effort to broaden the attraction of the Tri-Valley region to leisure visitors it’s important to broaden the awareness of all of the activities available. Action step(s): 4. Process Related Assets A final area of interest expressed by stakeholders was related to the process of how things get done within Tri-Valley. Specifically it was suggested that Tri-Valley create a more collaborative mindset and improve the connectivity of the region. Developing a Tourism Asset Strategy In considering a long term tourism asset strategy one of the benefits the region has is an incredibly strong business travel segment which provides very strong mid-week occupancy for the flag properties. It is anticipated this trend will continue for the following reasons: Continued growth of the greater Bay Area economy specifically the South Bay tech industry. Favorable commercial real estate prices compared with Silicon Valley should continue to fuel commercial real estate demand The proposed San Ramon City Center. 5 | P a g e Visit Tri-Valley Given these strategic changes in the marketplace it is clear that the Tri-Valley region will continue to have a strong business travel segment. This anticipated strong business travel segment presents a unique opportunity for Tri-Valley to strengthen the overall tourism economy by strategically supporting assets that will also grow the leisure side of the market. This Business Travel Plus strategy provides the region a unique opportunity to grow overall tourism. 6 | P a g e Visit Tri-Valley Part 1: Understanding Tourism Assets Tourism assets can be defined in the following way: Any county, city, town or region that has a feature that attracts people and resulting travel spending that contributes to revenues, employment and taxes for that location. When considering tourism in general and Tri-Valley specifically, it is important to understand the elements that comprise the tourism experience. These elements/assets are outlined by McIntosh, Goeldner and Ritchie1, and include the following: Tourism Element Characteristics 1. Natural Resources Natural assets unique to the region. 2. Infrastructure Air access, roads, utilities, etc. All elements that help support the visitor’s experience. 3. Hospitality Human elements that interact and serve the visitor. 4. Visitor Services Hotels, food & beverage and retail services designed to assist the tourist. 5. Attractions Natural and built facilities, events and local residents that provide visitors with experiences. 6. Local Culture Culture is what makes the destination unique and real and provides memorable experience to visitors. 7. Organizational Organization and processes that work to attract visitors to the destination using a variety of promotional techniques. It is clear that while Tri-Valley offers a number of resources including attractions, local culture, organizational hospitality, and some infrastructure, the lack of a major natural asset (e.g. mountains, lakes, oceans), or significant natural resources and attractions, the remaining 1 McIntosh, Goeldner and Ritchie Tourism: Principles, Practices and Philosophies and the Strategic Marketing Group 7 | P a g e Visit Tri-Valley elements including infrastructure, hospitality, and visitor services are mixed. The area is very weak on organizational efforts and funding designed to attract visitors. In addition to the above tourism elements, it is important to recognize that these elements in and of themselves are not enough. In order to truly maximize the area’s efforts, the following support is needed: A market-focused and market-driven strategy Too often organizations and regions can lose focus on marketing efforts and become concerned with political matters. A market-driven strategy can