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Bermuda Tourism Authority Tourism Experiences Investment Cycle 2019

Anyone interested in submitting an application for tourism experiences investment funds for 2019 should review this presentation in advance of preparing proposals.

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Bermuda Tourism Authority Tourism Experiences Investment Cycle 2019

  1. 1. Product and Experiences Investment Workshop 2018
  2. 2. BTA Purpose – Why are we here? 1. Promote Bermuda globally as a world-class destination for leisure and group travel 2. Create jobs and opportunities for Bermudians 3. Generate economic growth for Bermuda by encouraging investment that will enhance the tourism industry
  3. 3. Experience Investment Process Why are you here? Create new, enhanced and authentic experiences Bring more visitors to the island Better satisfy visitors that are already in Bermuda THE BTA IS LOOKING TO: • Support homegrown ideas to get off the ground • Diversify our experience provider base • Increase product offerings • Educate and align products offered by partners • Enhance on-island experiences for target visitors
  4. 4. Funded Investments Since inception, the BTA has allocated nearly $4M to home- grown ideas that help enhance the island’s collection of visitor experiences. 171 supported Experiences since 2014 55 Experiences supported for 2018
  5. 5. Return on Investment How can this be demonstrated? Creates jobs for Bermudians Fills an identified gap in the tourism product Demonstrate media exposure for Bermuda Increased visitor spend and/or length of stay Returns that can be re- invested into the tourism product Proven increase of awareness to markets outside of Bermuda Substantial amount of visitors All experiences should yield a Return on investment and have a direct impact on the tourism industry All events and attractions receiving funding from the BTA will be subject to economic and financial reporting, customer feedback reports and visitor participation data.
  6. 6. Product vs Experience Products: • Hotels • Tours • Excursions • Infrastructure Experiences: • Execution and delivery around the product • Unique, differentiating Bermuda • Perceived as providing great value for money • Personalized, connecting with the visitor • Things that create memories
  8. 8. Case Studies ArielRe Bermuda 7’s Haunted History Hidden Gems Bermuda Heroes Weekend
  9. 9. ArielRe Rugby 7’s What we liked: What could have been better: • Exposed Bermuda to a younger demographic • Addresses seasonality • Attracts visitors to the island • Good local community buy- in • Expanded event to include different age group categories • Engage with hotels earlier to create team accommodation packages • Additional marketing/PR to encourage attendance and engagement • Creating a part time/full time Local Organising Committee that is dedicated to operations and logistic prior and during the event Proposal: To create an event that appeals to collegiate and high school rugby teams, providing high level competition and a spectacular Bermuda experience.
  10. 10. Haunted History What we liked: What could have been better: • New experience that displayed Bermuda’s rich culture in dynamic new way • Enhanced visitors on-island experience • Online booking option • Multiple performances weekly Proposal: To create a walking tour brought to life with live acting in the UNESCO World Heritage Site of St. George’s.
  11. 11. Hidden Gems Proposal: Expand all-inclusive eco-tour offering by purchasing an additional vehicle What we liked: What could have been better: • Desire to expand and service additional visitors • Unique eco-tour offering that occurs year-round • Enhanced visitors on-island experience • The benefit of the increased exposure, through marketing support, to expand client base • Online booking option •Utilizing funds for a capital expense fell out of the approved criteria •Adding a NEW tour offering to compliment the all- inclusive eco-tours
  12. 12. Bermuda Heroes Weekend Proposal: To create Bermuda’s first four-day carnival event featuring overseas and local revellers immersing in Bermuda’s unique culture What we liked: What could have been better: • Exposed Bermuda to a younger demographic • New experience highlighting Bermuda’s rich culture (water raft- up) • Attracts visitors to the island • Created opportunities for local entrepreneurs and stakeholders • Provided overseas media exposure •Repeat visitation to the island • Online booking option • Having BHW take place during a different time of year to address seasonality challenges
  13. 13. US Leisure Visitor Targets
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  19. 19. Target Distribution 20% 10% 12% 23% 22% 40% 35% 18% 21% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2016/2017 2017/2018 US Leisure Air Visitors Jet-Setters Golden Boomers Active Families Experience Enthusiasts Adventure Seekers
  20. 20. Market Research
  21. 21. Visitor Arrivals Air 38% Cruise 62% Year-to-Date 2018 140,216 144,805 139,470 140,940 136,372 131,755 141,398 159,287 169,871 237,643 234,681 234,235 201,201 216,711 217,722 232,090 255,520 278,193 - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 Year To Date (January – July) Cruise Total Air
  22. 22. Total Air Visitors – Purpose of Visit YTD-16 YTD-17 YTD-18 # CHG YOY % CHG YOY VACATION & LEISURE 92,632 105,820 122,564 16,744 15.8% BUSINESS 26,557 28,984 28,521 -463 -1.6% VISITING FRIENDS & RELATIVES 19,729 21,597 16,794 -4,803 -22.2% OTHER 2,480 2,913 1,992 -921 -31.6% TOTAL AIR VISITORS 141,398 159,314 169,871 10,557 6.6% 23Air Vacation & Leisure Purpose of Visit = Vacation, Destination Wedding, Sporting Event, Concert/Festival/Carnival or America’s Cup Spectator/Vacation. Source: Immigration Landing Cards VACATION & LEISURE 72% BUSINESS 17% VISITING FRIENDS & RELATIVES 10% OTHER 1%
  23. 23. Visitor Spending $120 $1,182 $112 $1,253 $113 $1,412$1,374 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 Average Cruise Visitor Average Air Visitor Average Visitor Spending 2015 2016 2017 2018 YTD $45.5 $119.3 $44.5 $135.2 $47.9 $17… $176.0 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 Cruise Air Visitor Total Visitor Spending (Millions) 2015 2016 2017 2018 YTD
  24. 24. Air Visitor Spending by Category Lodging/accommodations, $689,… Restaurants & dining out, $312, 23% Entertainment & sightseeing, $91, 7% Shopping/any retail purchases, $93, 7% Groceries, $50, 4% Gas, parking & local transportation, $57, 4% Other, $38, 3% 2018 YTD
  25. 25. Cruise Visitor Spending by Category Sightseeing tours purchased on- land, $4 , 3% Retail purchases, $47 , 41% Transportation, $18 , 16% Meals/ beverages, $20 , 18% Excursions purchased on ship (excluding commission), $13 , 11% Recreation/ Leisure, $10 , 9% Groceries/liquor, $2 , 2%2017
  26. 26. Vacation & Leisure Visitor Air Arrivals AGE YTD- 16 YTD- 17 YTD- 18 # CHG YOY % CHG YOY 0 - 17 10,890 11,584 14,671 3,087 26.6% 18 - 24 6,549 6,665 8,478 1,813 27.2% 25 - 34 15,408 21,910 25,153 3,243 14.8% 35 - 44 14,250 17,483 20,863 3,380 19.3% 45 - 54 17,520 17,746 20,023 2,277 12.8% 55 - 64 15,949 17,232 18,767 1,535 8.9% Over 65 12,066 13,200 14,609 1,409 10.7% 0-17 12% 18-24 7% 25-34 21% 35-44 17% 45-54 16% 55-64 15% 65+ 12% Year-To-Date Age Source: Immigration Landing Cards 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 0 - 17 18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 Over 65
  27. 27. Market Gaps
  28. 28. Trends Millennial Families Show Promise: Tours, Activities and Experiences must adopt digital booking if they want to be successful: The operators that are quickest to streamline the purchasing process will be the ones to succeed as the tours market moves digital.” -Eye For Travel [Consumers] want their tours and activities on-demand. In the age of instant service from Uber, Seamless and HotelTonight, people have less and less patience. If they can’t book it easily right now, while they’re in the mood, they might not book it at all. - Megatrends Defining Travel in 2017 “Millennial families remain the most promising segment of this generation due to both their numbers and intention to increase travel spending.” - Portrait of American Travelers 2018- 2019
  29. 29. Bermuda is HIGHLY seasonal (average occupancy of 63%): Opportunity to build business Bermuda is highly seasonal with May to August having the highest average occupancy rates of 75-85%; Occupancies in December to February are as low as 33% - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 January February March April May June July August September October November December 2016 Air Arrivals 2017 Air Arrivals 2018 Air Arrivals
  30. 30. Source: Skift “The State of Tours and Activities 2018”
  31. 31. BTA Application Process
  33. 33. Experience Workshops Applications open for submission Applications closed Applications Reviewed Interviews for Second Review Successful/ unsuccessful applicants notified Successful applicants announced/ Contracts received Application Process – Step by Step August 30th/31st September 1st September 30th October 31st
  34. 34. FINANCIAL MARKETINGCONTACTS & COLLABORATION Type of Support • Requests must not exceed $75,000; funding is competitive and limited – some experiences may only receive partial support • Proposals must not be totally dependent on BTA funding • Applicants should not assume that they will be awarded support on an annual basis “The Tourism Authority has provided a phenomenal amount of support for our relatively new tourism business,” said Ashley Harris, whose company, Hidden Gems of Bermuda, provides the kind of unique experience visitors say they want. “People know who we are and the unique product we offer. We are very grateful for the positive support we get from the BTA.” • Access to BTA network and contacts • Facilitated collaboration that improves delivery of an experience
  35. 35. Disbursement and Use of Funds FOR SUCCESSFUL APPLICANTS WHO RECEIVE FUNDING: BTA will provide a percentage of the investment awarded once a contract has been signed Milestone payments will be made based on agreed performance targets and reporting requirements Final payment is made once the Post Experience Report has been received by the BTA Awardees must provide adequate proof that the funds received were used as intended. The BTA will be reviewing reports and checking that applicants have demonstrated acceptable use of funding.
  36. 36. Sample Milestone Payment Schedule Reporting Period Completion Date Activities and evidence required (but not limited to) showing activities are achieved Report due Date Progress Payment Amount ($) 1 Immediately with signed contract  Completed Jotform document provided by the BTA  Written confirmation of new activities/ offerings for 2019  Confirmation that CTA certification has been maintained  Confirmation of a TripAdvisor profile and/or online presence promoting the Project Immediately with signed contract $X 2 July 1, 2019  Mid-season report including weekly visitor statistics to date and the implementation of new activities/offerings September 3, 2019 $X 3 September 30, 2019  Submitted post experience Report inclusive of financial reports, weekly visitor statistics, income and expense reports with supporting documentation, customer satisfaction reports with supporting documents. (Failure to provide this report by October 30 will result in forfeit of the final payment). September 30, 2019 $X Total $X
  37. 37. What does an Application Need to Include 1. Evidence that the experience is distinctive, showing a link to one of our target experience segments 2. A viable business/marketing plan including an explanation of how you will: a) Increase visitor length of stay and/or spend b) Attract international visitors travelling for a specific event c) Align with target visitor expectations or fill an identified product gap d) Sustain the experience, subsequent to BTA funding 3. Multiple sources of funding, beyond BTA 4. Letters of support
  38. 38. Ineligible Experiences • Bermuda Tourism Authority to cover the full cost • Submissions received after the deadline • Hardcopy, handwritten or faxed applications • Experiences not occurring in Bermuda or related to Bermuda tourism • The funding request is to offset any expense(s) associated with a previous venture • Requests for permanent funding • Ineligible events: Conferences, Tradeshows, meetings, etc. • Capital ask
  39. 39. • A cross-sectional team at the BTA is created to review applications • Each team members rank and score proposals based on how well the proposal delivers on the assessment criteria • After initial review and scoring, applicants that meet scoring requirements are shortlisted and interviewed • Applicants receive another ranked score after interviews are completed • Rankings and weighted scores are reviewed and final funding/support decisions are made. Successful applicants are then notified How Decisions Are Made
  40. 40. Helpful Advice to Prepare Your Submission
  41. 41. Do you have a Business Plan? A business plan will: Assist with deliberate decision making Be key for financing •Banks, investors Be a tool to share the entrepreneur’s vision Help to ease entrepreneurial uncertainty •Risk reduction Force the entrepreneur to have perspective ‘On it’ – not In it Does your business plan have: Why you believe there is a need for your business? •Backed with market research? How you will execute? What your projections are? Accurate financials? What effects it will have on the tourism industry?
  42. 42. What do you want to do and why do you want to do it? • Is there a similar experience, event, or offering offered in Bermuda? • What makes your experience distinct? • Does your business have a location? • What do you need the financial/marketing support for? • - BE SPECIFIC • Do you presently have a tourism product? If so, explain how will the support be used to enhance the visitor experience? Key Questions to Ask
  43. 43. Key Things Your Business Plan Should Include Executive Summary Clear and compelling mission statement, objectives, financial overview, keys to success Problem/Solution/Opportunity Focus  Why now? Overview of Market with Key Research  Support your story with key research  SWOT Analysis Management • Who will be leading your business? • Include bios, background information etc. Financials • Make your business plan has realistic income and expense numbers • Show other sources of investments (i.e. savings, personal loan, private investor, additional grants, consumer loan) Marketing Plan • How will people find out about your product If you need further assistance with your business plan, the Bermuda Economic Development Corporation provide excellent services to support small business entrepreneurs. Contact 292-5570 or email
  44. 44. Research, Research, Research! Don’t underestimate business costs Educate yourself about the expenses of your new business. Survey potential customers and test the market Analyze the performance of similar products or services in the market - determine different ways in which you can improve the product Speak to other business owners as many have had experiences and success in the same field and would love to share their stories Gather your own data - traffic counts at a proposed location, yellow pages to identify competitors, do surveys or focus group interviews to learn about customer preferences Be as specific as possible; give statistics, numbers and sources The BTA’s in-house research team is available for advice and guidance based on research we’ve done. For information contact Independent Research Primary Research
  45. 45. Marketing & Social Media
  46. 46. Social Media Basic Concepts  What type of business is your company?  Who is your target audience?  What are you trying to achieve using social media?  Awareness  Revenue  Inspiration People buy from who they trust Quality vs Quantity Build customer awareness Provide quality consumer experience throughout entire engagement
  47. 47. A “push” strategy involves taking the product directly to the customer via whatever means. “Taking the product to the customer” A “pull” strategy involves motivating customers to seek out your brand in an active process. “Getting the customer to come to you” Push vs Pull Marketing Examples Trade show promotions to encourage retailer demand Direct selling to customers in showrooms or face to face Point of sale displays Cold calling Examples Word of mouth referrals Social Media Customer relationship management Sales promotions and discounts
  48. 48. Choose the right platform for your business Communicate regularly Have a “Book Now” option embedded within your website and social media Give credit where its due Reputation Management Tools • TripAdvisor Business Tool • Facebook Groups • Twitter • Hashtags • Google Alerts
  49. 49. Manage Your Business Reputation
  50. 50. Manage Your Business Reputation
  51. 51. Social Media in Your Application Show which social media platforms you are going to use and state why Show how you plan to use the platform to achieve your goal Tell us what tools you plan to use to measure your success Provide a detailed budget for social media marketing
  52. 52. BUSINESS & MARKETING PLAN Put time and effort into your business and marketing plan. We strongly recommend visiting BEDC for feedback and assistance. RESEARCH BOOKING OPTION Use accurate and reliable research to support your proposal [Consumers] want their tours and activities on- demand…people have less and less patience. If they can’t book it easily right now, while they’re in the mood, they might not book it at all. (Megatrends Defining Travel, 2017) Helpful Advice
  53. 53. Thank You!