Adventure Market Overview

Area Attractions Luncheon

May 22, 2014Julie Thorner

3Comprehend the importance and opportunities presented by following best practices when operating in sensitive wilderness and cultural environments

Recognize key adventure traveler demographic profiles and preferences2

Understand the value of the global adventure market1

WHAT WE’LL COVER

4 Understand the size & economic impact of the local rafting industry, Pigeon & Ocoee Rivers

SECTION INDUSTRY TRENDS

1

IN THIS SECTION• Global market value and growth projections

• Information on adventure travelers: demographic and psychographic profiles

• Adventure traveler preferences for activities, community engagement

DEFINITION OF ADVENTURE TRAVEL

THE ADVENTURE TRAVELER PROFILE DATA PRESENTED IN THE FOLLOWING SLIDES

WAS DERIVED FROM ORIGINAL SURVEY

RESEARCH.

In 2013 the George Washington University and the ATTA collaborated to conduct a global survey of adventure

travelers.

An internationally known behavioral panel provider was used to survey a representative sample of international travelers aged 18 years old or older, who have traveled outside the country in their home country in the recent

past. The surveys were translated into the native language of the participant’s home country.

Respondents came from North America, Europe and South America.

1,739 surveys were collected of which 845 valid surveys were extracted. Seven responses were discarded due

their outlier status. The final sample size is 838, yielding a combined margin of error of 3.4%. Regional sample

sizes are as follows:

RESEARCH METHOD

North America Respondents – 213Europe Respondents - 423

South America Respondents – 202

ADVENTURE TRAVEL COMPARED TO MAINSTREAM TOURISM

1950s 2000s

Mass Tourism; 4% average

growth per year

Adventure Tourism: 17% growth in 2009 and 2010

2010

42% penetration

2050

?

Time

Gro

wth

Adventure Tourism: 65% growth in 2011 and 2012

2012

26% penetration

Adventure travel is the fastest growing segment of the tourism industry. [ ]

ADVENTURE TRAVELER DEMOGRAPHICS40.6% of travelers worldwide can be classified as adventure travelers

Archeological expeditionBackpackingBirdwatchingCamping CanoeingCavingClimbingCyclingEcotourismEnvironmentally sustainable activitiesFishing/fly fishingHeli-skiingHikingHorseback ridingHunting Kayaking/sea/whitewater

Kite surfingMotorized sportsOrienteeringParaglidingRaftingResearch expeditionsSafarisSand boardingSailingScuba divingSnorkelingSkiing/snowboardingStandup paddle boardingSurfingTrekkingVolunteer tourism

Survey respondents were classified as “adventure travelers” if they cited one of the following activities as the “main” activity

on their most recent trip.[ ]

The table below provides further detail on the age breakdown of people within the 46.6% of all travelers classified as adventure travelers.

20-30 Years

Old21%

31-50 Years Old47%

>50 Years Old33%

[ ]

ADVENTURE TRAVELER AGE SEGMENTATIONThe majority of adventurer travelers are 31 – 50 years old

ADVENTURE TRAVELER TRIP PLANNING BEHAVIOR

For all age groups, online search is the most popular method with all age groups. Surprisingly, “friends” were not cited as a top source of trip

planning information for people age 28 – 40.[ ]

Age Range Friends(*) Online Newspaper Travel TV DMOBook

Air+HotelOnline

Use Guide DID NOT PREPARE

Less than 28

56% 67% 22% 22% 11% 33% 11% 22%

28 - 40 18% 77% 36% 32% 23% 41% 36% 23%

41 - 50 63% 63% 19% 23% 11% 19% 23% 12%

51 -60 70% 67% 20% 34% 12% 39% 27% 12%

More than 60

70% 70% 30% 27% 13% 37% 25% 12%

How else did you prepare for the last trip?

GENERATIONS AGE RANGES ACTIVITIES

Gen Yers Less than 28 Volunteer TourismEnvironment

Gen Xers

28 - 40Camping• Hunting

SandboardingVolunteer Tourism

41 - 50Archeology • Backpacking

Canoeing• Cycling • Horseback riding Volunteer Tourism

Boomers51 -60 Camping, • Cycling

Backpacking • Volunteer Tourism

More than 60 Archeology • Volunteer TourismEnvironment • Hiking

Note: Sample size for age GenY and GenX age segments was small, therefore results are indicators of trends but not conclusive.

Volunteering is popular with almost every age group; backpacking and camping are popular with people age 28 – 60.[ ]

ADVENTURE TRAVELER ACTIVITIES OF INTEREST

GENERATIONS AGE RANGES MOST LIKELY TRAVELING PARTNER

Gen Yers Less than 28 Partner

Gen Xers28 - 40 Spouse/partner

41 - 50 Family

Boomers51 -60 Family

More than 60 Friends/Partner

GenX and Boomers 41 - 60 travel with family, while GenY and Boomers 60+ travel in pairs[ ]

ADVENTURE TRAVELER TRAVEL STYLE

The following slides provide basic

information on the need to adhere to best

practices when leading adventure trips and

the benefits that observing best practices

can bring to a destination.

SECTION THE IMPORTANCE OF

BEST PRACTICES

2

Sustainable Development

Policies

Infrastructure

Humanitarian

Entrepreneurship

Adventure Activity Resources

HealthCultural Resources

Safety

Image & Marketing

Natural Resources

The ATDI describes 10 factors necessary for adventure market development; adherence to best practices is especially important in the areas of Safety,

Natural , Cultural, and Adventure Activity Resources[ ]

ADVENTURE TOURISM DEVELOPMENT INDEX FRAMEWORK

Adventure travelers and companies can influence the protection of land, culture and biodiversity - the base assets upon which

adventure tourism is built

TYPES OF BEST PRACTICES EVERY ADVENTURE BUSINESS MUST CONSIDER

BEST PRACTICE AREA EXAMPLE METHOD OF MONITORING

Environment• Leave No Trace• Best Practices for Marine,

Mountain, Jungle Environments

Community members track changes in specific indicators, for example monitoring volumes of trash, demand for wastewater treatment

WildlifeGuides instructed not to bring guests too close to wildlife, or to lead groups through known nesting grounds

Health of species populations

Guest SafetyGuides possess wilderness first aid and technical skills for the trips they lead

Annual training tests for guides

Community Communities are involved in the tourism supply chain

Regular interaction with community groups to gauge their satisfaction with tourism

BEST PRACTICES TO SUSTAIN NATURE, CULTURE AND ADVENTURE RESOURCES

[ ]

• Total Guest Rafting Numbers for Top

US Rivers

• Pigeon River Historical Growth

• Ocoee River Economic Impact Study

Statistics provided by America Outdoors

Association

SECTION LOOK AT LOCAL RAFTING

INDUSTRY IMPACTS

3

Rafting Guest Numbers Since 2009

Source: America Outdoors Association

The Pigeon River: Consistent Growth Far Surpassing All Other Top Rivers

Source: America Outdoors Association

The Pigeon River: Explosive Rafting Growth at 750% Since 1995

Source: America Outdoors Association

Let’s Extrapolate: Using the Recent Ocoee River TN Impact Study

Source: America Outdoors Association

Total Measured Economic Impacts of Ocoee Rafting

Source: America Outdoors Association

Leveraging Local Adventure Tourism Natural Assets to Market this Region

• Great Smoky Mountains National Park: over 12-13MM visitors/year, the most visited park in the entire US NP system.

• Within a day’s drive of most of the East Coast• Whitewater Rafting: Pigeon, Ocoee, Nolichucky TN; French Broad,

Nantahala, Tuckasegee NC; Chattooga, Hiawasee GA• Mountain Biking & Hiking trails• Camping: backcountry (USFS, NP), campgrounds as base for day trips• Adventure Courses, set in natural locations, Ziplining, Ropes

Challenge Courses, Adventure Aerial Parks• The combination of outstanding adventure tourism natural assets, a

world renowned National Park, developed entry level adventure product, and exceptional shopping and theme park attractions next door is hard to beat for the vacationing public! Only the Southeast has this…

Try out a local adventure trip/product soon!

Questions/Ideas:

Julie ThornerPresident, Liquid Spark Inc.PO Box Bryson City, NC 29718www. LiquidSparkMarketing.cominfo@liquidsparkmarketing.comO:828-488-3420/ M:828-736-1695