LARC SECTION III

SECTION III
ATTRACTION DEVELOPMENT OPTIONS

Summary

LARC was engaged primarily to identify realistic options for Eureka Springs to reverse its current decline in tourism. This section reviews potential tourism strategies based on the previous section's market assessment, including strategies that reflect local ideas, as well as LARC's recommendations for more general tourism support projects.

The critical issues that arose during our research involved organization and promotion of existing tourism marketing strategies. These issues are introduced at the conclusion of Section III and integrated into LARC's final recommendations presented in Sections IV and V.

LARC is attempting to be brief in our presentation so that Eureka Springs can implement the recommendations in a timely manner without being overburdened with detail at this juncture. Tourism development is a process with many steps that, when completed in succession, lead to overall program success. Although many aspects for developing and maintaining a strong tourism program are beyond the scope of LARC's engagement, we will present as many suggestions as possible, so that Eureka Springs can once again enjoy a successful tourism program as well as the benefits that go with it.

At this point our main objective is to assess and present modifications to the existing tourism program as well as identify short- and long-term opportunities. As the result of our assessment, we have identified organization and marketing as the key weaknesses in the current program. To be successful and enjoy the increases Eureka once had, organization, promotion, and economic restructuring detailed in Section IV must occur. Section III will address in detail the organization, promotion, and restructuring aspects as they exist in Eureka Springs today and what LARC's research shows as problem areas.

Why Tourism?

LARC was engaged to develop near- and long-term tourism marketing options for the City of Eureka Springs. The city has numerous attractions that draw tourists as well as locals. The attractions are diverse in nature, a positive feature for the marketing of Eureka Springs. In any tourism program, quality of life for residents is just as important as increasing tourism. In the numerous communities in which we have worked, we have found that increasing tourism can also increase the quality of life for residents.

Table 39 shows why tourism is important to the community. Tourists purchase goods and services locally and pay taxes at the same rate as local residents, although they don't consume or use local services nearly as much. The result of this spending translates into economic impact for the community. Generally, this will reduce the tax burden of residents and increase quality of life by providing additional local entertainment opportunities.

Table 39: Economic Impact of Tourists
Annual Impact of 100 Additional Visitors Per Day
Average U.S. City
	Impact
Area	Direct	Total 1
Retail and Service Sales	$1,237,000	$2,350,000
Wages and Salaries	$243,000	$619,000
State and Local Taxes	$99,000	$145,000
Bank Deposit Increase	$119,000	$226,000
New Travel Industry Jobs	28	48
New Retail or Service Businesses	2	4
1 Includes direct, indirect, and induced impact
Source: U.S. Travel Data Center

Most people are aware that tourists are important to motels and restaurants. However, few are aware of tourist impact on other local businesses. Table 33 shows the impact of tourist expenditures on other local establishments. As indicated, almost every business is positively affected in some form by the tourism industry.

**Table 40: Tourism's Impact on Typical Businesses**
Business	% of Income From Tourism
Hotel/Motel	94.5%
Restaurants	49.4%
Taverns/Bars/Liquor Stores	34.8%
Amusements	33.1%
Gasoline Stations	31.5%
General Merchandise	18.6%
Auto Dealers and Garages	15.8%
Food (Retail)	13.8%
Apparel and Accessories	13.6%
Lumber, Hardware, Building Materials	13.1%
Furniture and Fixtures	12.1%
Other Retail	12.2%
Drugs	11.4%
Farm Supplies and Ag. Products	8.5%
Other Service Firms	4.5%
Source: U.S. Chamber of Commerce

Exhibit Two on the following page presents a visual interpretation of tourist impact on businesses.

The exhibit presents a good illustration of how spending flows through the different establishments in a community and affects every business in some way.

It has been proven in many cities across the country that when a community is attractive to visitors it is generally attractive to industrial developers as well. The atmosphere created by enhanced quality of life, good recreational facilities, and lively civic spirit is the same atmosphere sought by many industries in the relocation of their businesses. Because Eureka Springs has developed itself into a primary tourist destination with no other main industry greatly contributing to its economy, it might prove wise to develop other shoulder industries that could compliment the existing tourism program, i.e., upscale spas, health resorts, and a golf course.

Now that we have briefly discussed why tourism is important to the community overall, we will address tourism issues specific to Eureka Springs, the focus of our work. The remainder of this section will present our assessment of areas and issues in Eureka Springs affecting short- and long-term growth opportunities.

Issues Affecting Eureka Springs' Tourism Program

Signage

Signage leading from Fayetteville, Arkansas, one of Eureka Springs' major entry points, is very poor. LARC recommends the City of Eureka Springs contact the Arkansas Department of Transportation to work on erecting better signage to Eureka Springs. Additionally, there is a great need to protect entryways to the city, which are becoming littered with billboards. Officials will need to regulate signage at the city's entryways and elsewhere to preserve the scenic beauty of the area and the Victorian feel of the town.

Hotel / Motel Pricing

LARC recognized the pricing war between the hotels and motels as one of the top problems facing the City of Eureka Springs. After assessing the Eureka Springs market, it is also clear that rate reductions are in response to the lower visitor counts of the last few years. Owners are gambling on small dollar room rates to tide them over until business increases, a theory that works against a tourism program. As in a gas war, no one ever wins. Other communities have established safeguards against price wars by searching for city ordinances that prohibit the visuals resulting in price wars.

It might seem unfair to target this tourism sector by passing a visual pricing ordinance, but the result of hotel/motel price wars hurts the entire tourism structure. Action should be taken immediately to protect the tourism industry that is so vital to the Eureka Springs economy. It is LARC's recommendation to actively organize the economic restructuring committee we will talk about in Section IV. LARC concludes if the structure this study sets forth is followed, the decline in occupancy will correct itself with new product development.

Hours of Retail Operation

Most small cities experience difficulty in maintaining a consecutive structure of retail business hours. For communities who rely on local citizens for their business, this doesn't seem to be a problem. But for the community who has based its economy around tourism, non-consecutive hours can be deadly. Visitors travel when they are off work, and this is often when small businesses like to close. Small town retailers are usually retired folks who want to work for themselves. Unlike shopping malls where management firms mandate opening and closing times, there is no governing body over independent store owners. The successful cities LARC has encountered have overcome this problem, because they had business owners with enough vision to see the benefits of maintaining "tourism" hours, or being open when visitors are in town. If visitors or local citizens become unsure of your operating hours they will choose not to make the trip downtown to your business. At the very least, every business should post their hours and honor the posting.

Parking

Parking is almost always a problem in small downtowns; on the other hand, small towns almost always think they have a problem with parking. The bright side to this problem, of course, is that without it, a town has an even larger problem-no visitors. Eureka Springs has executed some excellent solutions to help with the lack of downtown parking such as the successful trolley cars. Other ideas such as downtown valet parking are also excellent solutions to the lack of parking. In fact, studies show this is a great form of customer service that the upscale visitor will recognize. The visitor views the option for valet parking as progressive. Solutions like this one signal that Eureka Springs wants to make shopping downtown a pleasant experience. In debating parking solutions, don't overlook the fact that a visitor doesn't always feel inconvenienced by having to walk. The visitor is on vacation and has time to enjoy a stroll, unlike local citizens who like to park directly in front of the store they wish to visit. Because of the topography of Eureka Springs, it is one of the few historic cities that could build a parking deck architecturally correct to the city's Victorian theme. The removal of downtown parking meters should be done immediately. Parking meters are a clear message to travelers that the city only wants them there for a limited time. Eureka Springs will constantly have parking as an issue, but it is not a problem. For tourism growth, ongoing conversation on new ideas such as valet parking and the construction of a parking deck is essential. LARC recommends Eureka Springs view this as an issue, not a problem, that will always be looking for new ideas.

Downtown Services

Numerous studies show that restroom facilities are first on a traveler's list of how they judge a community. Years ago, our parents knew exactly which service station to patronize because it also had clean restrooms. This trend has continued. A city can no longer allow McDonald's to serve as its public restroom. The two public restrooms in downtown Eureka Springs are in very bad shape. They are dark, unkept, have bugs, and have mirrors that need to be re-silvered. They give a message to the visitor that says, "You don't really care that I'm here." The city should take responsibility in addressing the public restroom issue. The marquee boxes outside the restrooms in the center of town needed painting and were empty of information. The second restroom had trash scattered under the staircase leading out; dead bugs were also noted on the floor of the restroom. These visuals add to the image of an unsanitary restroom and nothing turns a visitor off faster than unsanitary conditions. In fact, you might be surprised by what the visitor remembers most about your beautiful city...the uninviting restrooms! Other cities we have worked with are considering weekend attendants in the public restrooms. Realizing how important an issue this is would be the first step in cleaning it up.

There are also numerous green space areas with weeds growing out of control. The beautiful and historic area known as the "basin" is in much need of attention. Eureka Springs is known for its healing springs, but the basin looks more like you could catch something unhealthy there if you were to touch anything. The historic spring is covered with an ugly wire section that makes it hard to imagine what the "healing" basin must have been like in its day. LARC concludes this area to be of particular importance because Eureka Springs bases its promotional image around it. LARC recommends the city consider hiring a firm to design a master plan for this area. The basin is the "heart" of your downtown, with very few dollars and a plan, it could become a "healthy heart," and defiantly increase blood flow to the rest of the community.

In sad contrast to the beautiful architecture that surrounds them, the streets and sidewalks appear dirty and unkept. Some areas are very uneven, narrow and hard to maneuver. Remembering the majority of Eureka Springs visitors are older or families with children that require strollers, sidewalks become an important issue to examine.

But these streets are also part of the charm of the city. They complete the architectural style of the buildings and the era that made Eureka Springs famous. The issue should be examined for options by the Design Committee which we will speak about in Section IV. One consideration is for the main street to be closed during the strongest part of the business day. This would allow the street to serve as a sidewalk for most of the day and you would maintain your sidewalks as is. This is only one suggestion to the issue. Like parking, this is not a problem but an issue that could be improved upon with discussion.

Marketing

LARC's research shows Eureka Springs can further maximize its tourism destination appeal by expanding its market image. Presently, the city markets itself as a Victorian Village in the Ozarks. Our research shows the number one reason travelers enter the area is to enjoy the scenic beauty of the Ozark mountains. Focusing on surrounding outdoor recreational opportunities, as well as other area attractions, and then adding the Victorian charm of the city would greatly broaden market share. Current studies performed for the state reinforce the conclusion Eureka Springs must broaden its image to appeal to more people if it wishes to increase its numbers. New product development is also a key factor.

LARC's market studies conclude a destination must have an interest for each family member for it to be chosen. Current market studies show families desire an educational or interactive experience in their travels. Eureka Springs has an excellent opportunity to explore the development of an attraction, resort, or spa focusing on the health and wellness interests of today's family. With the history of Eureka Springs, this would be a natural attraction for the area, and the marketing possibilities would be limitless. Eureka Springs needs to explore the development of a new attraction- one that will capture today's "family" market, as well as children.

LARC's research shows that Eureka Springs contains broad cultural diversity among its citizens. This diversity has surfaced in constant disharmony among your citizens when trying to decide a marketing direction. We believe Eureka Spring's cultural diversity can be turned into a positive advantage by using it to appeal to many different types of travelers. The State of Arkansas' most recent study by D.K. Shifflet & Associtates also agrees with our conclusion. In your marketing material, show retirees enjoying grandchildren on a visit, families rafting a river, couples shopping the business district, groups viewing the Passion Play and musicians enjoying a jam session in the "basin." Depict people sharing the companionship of a bus tour, the romance of a couple's getaway, the solitude of fly fishing. The diversity of your campaign will be your success. In addition, use area attractions to market "packages" and broaden appeal, i.e., Holiday Isle Golf Package, an evening at the famous Passion Play and the Promise. Regional marketing is essential in today's tourism program. Great consideration should be given to cooperative advertising. The entire tourism program would benefit if a portion of your advertising dollar was allocated to regional promotion. LARC recommends you develop package trips for different market groups and market yourself with the state's program and other regional advertising promotions. Do not function as an island if you wish to increase your number of visitors.

Eureka Springs needs a broader image for marketing to today's traveler. After selecting an image, reinforce it by using it in all marketing materials. Whatever media is used, there should be a continuity between the marketing tactics. All printed materials should reflect this image, including ads, response pieces, rack cards, etc. The current advertising material Eureka Springs is distributing has no continuity. Section IV will address how to structure your tourism program in regards to promotion.

LARC has evaluated Eureka Spring's current marketing material and, at this point, we will discuss your individual advertising pieces.

Chamber Magazine

This response piece should, first and foremost, invite the reader to the charming town of Eureka Springs. It does not. It is purely an advertising piece for local hotels. Information on the city itself is lost in the ads. Travelers must first have a desire to travel to an area before they select it as a destination. Because this piece doesn't create that desire for Eureka Springs, financial contributors are wasting their money. Many cooperative advertising projects are ineffective because those involved each want their name in lights. But the prospect is lost before anyone gets a chance to share what makes them unique. The weight of the magazine is also an issue. Because its weight makes it expensive to mail, it is bulk mailed, which slows delivery in two ways. First, a certain number must be accumulated before the mailing can be sent and, second, bulk mail has a low priority status with the U.S. mail service. Based on these issues, LARC recommends that this piece be completely redesigned by a professional ad layout artist.

Travel Planner

With a gorgeous, full-color cover, this piece promises to be informative and eye-catching. It is neither. The black-and-white inside pages are poorly designed and are in stark contrast to the color cover. There is also not one itinerary for a group travel planner to follow. Travel planners expect a tour planner to answer important questions for them, such as how long it will take to move a group of 50 from point A to point B, what restaurants can accommodate the size of the group, hotel accommodations, special things there are to see and do, how long will it take to shop main street, where the public restrooms are located. Itineraries for 1, 2, and 3 day trips should be listed. If you make it easy on the group tour leader, they will visit you time and time again. Travel trends also show visitors who choose tour groups are changing. The profile of this person is no longer the typical senior. The new group traveler has money, education, and is on the tour circuit for companionship. This is a very important segment of today's travel market and Eureka Springs will miss out by not marketing to them.

Wedding Guide

This piece would more accurately be called Wedding Advertising Guide. The cover starts to tell a story, but when you open the book, you become lost in 60 pages of ads. If this wedding guide is meant solely as a response piece for wedding inquiries, it probably does the job. But, if its purpose is to entice a couple to choose Eureka Springs, it misses its mark. You could accomplish this by improving the beginning of the guide. For example, share some visuals that show a "day you will never forget." Like the cover, follow up the pictures with text describing the day and the variety of services Eureka Springs can offer, from the simplest wedding to the most elaborate, then follow up with advertisements of the different businesses to choose from.

Advertising Supplement

Eureka Springs placed a quarter-page ad in the Arkansas Autumn Winter Travel Guide Supplement that included a toll-free number to call. This line was answered in San Antonio, Texas. Market research shows that it is much more effective to have the call answered locally. The ad includes a good reflection of the city, but in surveying the general public, people read the headline as being intended only for people who live in Arkansas. The tag line at the bottom of the ad, "turn of the century time of your life," received a more favorable response. The image of outdoor recreation and scenic beauty, the number one reason visitors travel to Arkansas, is not well portrayed in the ad's photo collage. Eureka Springs should align its advertising with that of the region as well as the state to make the most of advertising dollars and to give prospects more reasons to visit.

Web Page

The Eureka Springs web site is informative and gives a broad range of things to see and do in the city. Some of the pages within the site were slow to connect and some never connected. A common mistake with web sites is that once they are built, no one ever checks on them. The current trend in web sites is that the more your site changes, the more appealing it will be to visitors. If someone is not regularly monitoring and updating the Eureka Springs site, we recommend this be done.

Tracking

Tracking advertising is one of the most important functions any tourism program can execute. This tells you where your visitors are traveling from. Compiling data helps in future ad placement and alerts you to new areas of interest in your city. No call should be taken without asking the caller how they heard about Eureka Springs. We recommend the Chamber of Commerce Information Center be the location for these calls seven days a week. The staffing costs could be deferred by not having to pay an out-of-state service. Market research supports this, with the public preference in speaking to the location they are interested in.

Marketing Conclusions

As stated earlier in this section, LARC has identified the marketing program in Eureka Springs to be a weak point in the program. Today's tourism market is very competitive. Destinations that fail to react to market research that clearly defines their customer will never fully maximize its advertising dollar. In today's competition you can no longer get by with a lightweight tri-fold as your marketing piece, nor can you afford to use a piece that is so heavy you have to bulk mail it. Today's destinations are going after the limited number of travel dollars with fierce competition. The trend in travel ads are "advertorials," self produced and paid for editorials that promote your destination, as if a travel writer found the perfect vacation spot and wrote all about you. The competition is steep and LARC recommends expert advice in developing your campaign. Also, an outside advertising firm will look at you as a whole destination, the same way a visitor looks at you. Guests don't get involved in thepolitics of a community and you should keep that in mind when developing your ads. LARC recommends that Eureka Springs consult with its advertising firm on the marketing section of this report and allow the firm to develop the "entire campaign." You will never have a true continuity in your marketing plan unless you allow it to be executed by one source. Advertising is not cheap for any destination, do not make the mistake of hiring a firm and then think you know more than their area of expertise. LARC has seen more than one city not take excellent advice, bought and paid for by the people ignoring it.

Another good outline to follow in reevaluating your advertising plan is to have a clear understanding of "who is covering what market." Because small destinations do not have the advertising dollars of Disney World, it becomes very important to determine who your visitor is and be realistic about how far your dollars will go to reach that customer. Your market radius has been stated earlier in this study. You should focus your advertising dollars within that radius. Destinations would love to market to everyone but that is only available to those with unlimited budgets. A wiser course is to allow the state to focus its resources on the international and domestic markets, the region should co-op together to attract border states. Cities surrounding Eureka Springs should partner together to market within the designated market radius and Eureka Springs should continue marketing to its identified markets. When this structure is followed, an advertising overlay occurs. It is a great format that extends marketing dollars for everyone participating.

Section III Conclusion

* Increase Signage from Surrounding Cities

* Protect Eureka Spring's Entryways to the City