4.0  ADVENTURE TOURISM MARKET ANALYSIS

 

 

4.1    GENERAL TRENDS

 

4.1.1   SOCIO-DEMOGRAPHIC TRENDS

 

Demographic trends influence the social structure within which the tourism industry operates.  The following point form bullets summarize key trends, generally and within age group cohorts.

 

 

Table 4-1

Socio-Economic Trends

 

Some General Trends

 

·         Total Canadian population is expected to increase by some 2.6 million people between 1996 and 2006, to 31.6 million.  In the US, the population will increase by 22 million from 1997 to 2007, to 290 million.

 

·         The 50 - 59 year age group cohort will experience the greatest relative growth, with strong growth also in the older age groups.  The proportion of the population under 45 years will grow only minimally or not at all.

 

·         In the US, over half of the population will be 37 years or older by 2007; a similar phenomenon is occurring in Canada as the baby boomers age.  

 

·         The ethnic and racial make up of the North American population will continue to change as a result of a declining birth rate and immigration;

 

·         In the US, most of the population growth will occur in the south and the west, and a significant portion of it will be in non-Caucasian segments, such as Hispanics.

 

The Pre Boomers (55 - 65 years)

 

·         A much smaller market segment, born immediately before and during WW II;

 

·         Now empty nesters, many with considerable wealth having made money from real estate, management positions and the stock market;

 

·         Also a well-travelled market, upscale, sophisticated and demanding - many with the time available for longer, more intensive travel experiences.

 

The Seniors (65 years plus)

 

·         A growing market segment, particularly in the 10 - 20 year time frame; younger seniors have a strong interest in travel, although traditionally it has been more oriented to visiting friends and relatives.  This may change as the baby boomers move into this age group - a more vibrant, active senior's travel market is expected.

 

·         Women travellers outnumber men in this age segment - this needs to be taken into account in planning travel products and experiences.

 

The Baby Bust (20 - 35 years)

 

·         A much smaller market segment that tends to be more idealistic and concerned with the environment, social issues, etc.

 

·         Raised in the technology and information age - they have a high rate of Internet usage which will be important for travel information;    

 

·         Sub-segments of this market, those highly educated and in the high technology sector, have or have expectations of, considerable wealth.

 

The Echo Generation (5 - 20 years)

 

·         Children of the baby boomers - now moving into university years- obtaining a good education is very important to them

 

·         Have grown up with television, computers, etc. - a high level of entertainment.

 

·         It remains to be seen if their travel interests and expectations will be similar to those of their parents.

 

 

 

 

4.1.2   TRENDS IMPACTING TOURISM

 

Age, life stages, and earning power are key determinants for the purchase of travel products.  Now, and in the future, the group having the most dramatic impact on the travel industry is the baby boomers - those persons born between 1946 and 1964.  This nearly two decade long period of population growth produced nearly 10 million Canadians and 75 million Americans.  In fact, approximately 30% of all Canadians and about 28% of Americans are baby boomers.

 

This group has been very dominant throughout their life stages and has transformed the market based on their numbers.  They created a boom in school construction, in housing starts, in clothing sales, in automobile sales, and in tourism.  Their impact on the travel industry will likely become even more dramatic over the next decade.  This is because boomers - more than any other group in the recent past - have the financial means and the interest in travelling.  Boomers typically travelled when they were younger, both on family holidays and as young adults, and are expected to remain avid travellers as they grow older.  As of the mid 1990s, about 40% of all domestic travel in Canada was by baby boomers, and they spent about 50% of all the domestic travel money.

 

The first baby boomers to enter the peak income earning years (typically 45 to 54) did so in 1991 and the last will come through this period in 2018.  Persons in this age group typically have increased incomes, and with children leaving home, the boomer parents will have the ability and the financial means to travel.

 

The older boomers are saving more money now that their families are growing up - and a portion of this money will be used to travel.  Additional future family wealth will be driven by the trend towards two income families through the 1980s and 1990s - that should become two pension families in the current millennium.

 

An additional financial windfall is anticipated due to the inheritance likely to be passed on by the parents of today’s boomers.  This group survived two world wars, and the  last century’s major economic depression.  These events caused boomer parents to be very financially cautious through the post war boom of the 1950s and 1960s.  Much of this wealth (estimated to exceed $10 trillion throughout North America) will be passed on to today’s boomers in the form of inheritance.  Boomers will spend a portion of this money on travel.

 

Future travel by boomers is likely to be different than travel in the past, and boomers are likely to exhibit the following trends:

 

-        more individualistic and perhaps not as likely to travel in groups

-        more well travelled and travel savvy, and will be more demanding in obtaining service and value

-        more knowledgeable, quality conscious and sophisticated consumers

-        interested in a sense of achievement rather than rest and relaxation

-        used to being fun seekers and thinking and acting young - this will continue as they age

-        more environmentally aware and may shun mass travel destinations

-        more likely to be interested in cultural or educational themes to their travels

-        well educated and inclined to expand their education through learning oriented travel

 

 

These trends are expected to be very significant for the study area.  The dominance of the baby boomer market for travel generally is well documented and they are expected to continue to be the dominant socio-economic cohort.  This demographic age group is also the key consumer of adventure travel, particularly soft adventure, which is the focus of this analysis.  Marketing programs geared solely to this group should form the basis of individual facility, community and regional marketing plans.

 


 

4.2    ADVENTURE TOURISM PROFILE

 

 

4.2.1   ADVENTURE TOURISM AND ECOTOURISM

 

A variety of terms are used to describe outdoor, adventure-type tourism.  In addition to adventure tourism and ecotourism, other terms include outdoor tourism, nature tourism, and green tourism.  Generally, all of these terms refer to outdoor recreation travel linked to recreation services and/or activities that take place in an outdoor land based setting.  Such services and activities include wildlife viewing, hiking, trail riding, guide outfitting, biking, caving, mountaineering, llama trekking and climbing.

 

However, the two most common terms used to describe these activities are adventure tourism and ecotourism - and these are used often used interchangeably - but they refer to two distinct types of travel and travellers:

 

·        Adventure Travel - an outdoor leisure activity that takes place in an unusual, exotic, remote or wilderness setting, involves some form of unconventional means of transportation and tends to be associated with high or low levels of physical activity;

 

-        Hard Adventure Travel – combines a unique experience in an outdoor setting with excitement and a degree of risk.  It frequently demands physical exertion a well as a level of skill

 

-        Soft Adventure Travel – focuses on providing a unique outdoors experience or ‘adventure’.  However, it involves only a minor element of risk, little physical exertion, and limited skills

 

Ecotourism – purposeful travel that creates an understanding of cultural and natural history, while safeguarding the integrity of the ecosystem and producing economic benefits that encourage preservation.  Ecotourism implies a scientific, aesthetic, or philosophical approach with a high level of interpretation.  Ecotourism can be considered a sub-set of adventure tourism.

 

For the purposes of this analysis the term Adventure Tourism will be used to represent both categories of outdoor tourism activity.

 


 

4.2.2       CHARACTERISTICS OF ADVENTURE TOURISM

 

The following table describes the market size, traveller characteristics, traveller expectations, and trends.

 

 

Table 4-2

Characteristics of Adventure Tourism

 

Topic

Description

Market Size

 

According to the 1996 Survey on the Importance of Nature to Canadians, which sampled Canadians 15 years of age and over:

 

·         19.9 million Canadian adults, 85% of the population 15 and over, took part in one or more nature-related activities during 1996.

 

·         43.7% or 10.3 million participated in one or more of 17 specified outdoor activities.  They averaged 16 days of outdoor recreation per participant and 13 trips to natural areas for outdoor activities per participant

 

·         Outdoor recreation activity by Canadians totalled 1.5 billion days;

 

·         191 million trips were made of which 3/4 were same day trips and 1/4 or 40.5 million were overnight trips to natural areas for outdoor activity.

 

·         Total spending of $11 billion on nature-related activities; $6 billion was trip-related.

 

According to the 1998 Canadian Travel Survey:

 

·         39% of Canadians on overnight domestic trips in 1998 participated in sporting/outdoor activities.

 

According to the Travel Industry Association of America:

 

·         98 million US adults have taken an adventure trip in past five years; this includes 31 million who participated in hard adventure including rafting, scuba, diving and mountain biking.

 

Characteristics

 

According to the 1996 Survey on the Importance of Nature to Canadians, outdoor or nature-oriented travellers are attracted to areas of significant natural beauty and uniqueness.  Over 50% of the Canadians participating did so in national/provincial parks or protected areas.  Some other key characteristics of outdoor/adventure travellers:

 

·         They respond to a wide array of travel motivators including adventure, excitement, outdoor recreation, physical activity, personal challenge, opportunity for educational experience, and environmental conservation.

 

·         Adventure travellers expect to experience activities of varying degrees of risk and excitement, and are looking for personal growth and achievement.

 

·         Demographically, adventure travellers can be typically characterized as;

-         between the ages of 35 and 50

-         travelling alone, in couples or small groups

-         enjoy a relatively high level of disposable income 

-         often employed in professional or managerial occupations

-         well-educated

 

·         Participation rates are generally higher for those aged 45 and younger; particularly those in the 25 - 44 age range, and for the more highly educated and higher income groups.

 

·         Generally 50% of all outdoor participants have attended college and 1/3 are college graduates

 

·         However, adventure travel is increasingly becoming "main-stream" - being sought by a much broader group of nature/outdoor-oriented people.  Today, adventure travellers now often include families and seniors.

 

·         Adventure/outdoor travellers tend to take several vacation trips per year, often seeking out new and different destinations and experiences.

 

·         Generally, eco-tourists mirror the demographic characteristics of the adventure traveller although true eco-tourists represent a relatively small sub-set of the overall outdoor/adventure tourism market.

 

Trends

·         Adventure tourism has been one of the great growth markets of the 1990s.  Growth is expected to continue, but not at the same rate.  As well, it is likely that there will be more interest in soft adventure activities, given the aging of the population.

 

·         Adventure travellers are increasingly seeking out experiences that incorporate a number of different activities, such as hiking, kayaking, birdwatching and cycling all in one tour rather than just one activity.

 

·         There is an increase in the number of women participating in activities such as camping, hiking, biking, rock climbing and whitewater rafting.

 

·         Participation in strenuous activities such as rock climbing, jogging, and backpacking shows notable decline after middle age; the decline is less pronounced in activities such as bicycling, cross country skiing, nature observation and walking.

 

·         Because of time constraints and limited leisure time, there is increasing demand for outdoor recreation opportunities close to home.

 

 

 

4.2.3       IMPLICATIONS FOR THE NORTH CARIBOO

 

Adventure travellers want outdoor experiences that are unique and genuine, as opposed to contrived or superficial.  Enriching, fulfilling adventure experiences are being sought as travellers look for more experiential, participatory, and fun experiences which provide some level of learning.  The North Cariboo offers the “real thing” in terms of adventure travel with indigenous cultural attractions and authentic rural outdoor products.  Typically, facility owners, and the staff dealing with the patrons, are from the area and provide the friendly western hospitality that the area is known for.

 

Adventure travellers have often experienced adventure trips in other destinations and are attuned to good quality - they are willing to pay, but only if the value and quality of experience is there.  This will be a particularly significant issue as the adventure sector in the region develops.  Adventure travellers are well travelled and can be demanding.  They expect good facilities and good service.

 

Adventure oriented travellers are increasingly sensitive to environmental practices and conditions.  The existing Cariboo-Chilcotin Land Use Plan and its zonation recommendations should assist adventure tourism development by preserving natural appearing areas. 

 

Adventure tourists are more respectful of local values, traditions, and cultures than in the past.  Although not a focus of this analysis, this characteristic of adventure travellers will be very important if First Nations communities in the region embrace tourism as part of their economic development strategies.

 

 

 

4.3           TOURISM PRODUCT SELECTION PROCESS

 

Determining which products offer the greatest potential opportunity for development was made by the analysts.  The selection was made based on input from existing resource significance information, tourism trends, input from local agency representatives, and from the project Local Advisory Group.  To facilitate the selection process a system has been developed to compare and rate products based on their development potential. 

 

The system is intended to evaluate tourism products/activities against a series of criteria.  It is intended that those products/activities that were based on high quality resources, had market potential, and generated economic benefits to the community, would form the basis of the opportunity analysis.  This process is designed to be rigorous and defensible, while being consistent among the range of products.

 

The evaluation matrix rates 27 tourism products grouped under the following headings:

 

-        Snow-based

-        Water-based

-        Land-based

-        Touring

-        Services

 

Each of these products is rated against resource, market, and community criteria, using a scale of zero to four, where:

 

0 =             N/A

1 =             Poor

2 =             Average

3 =             Good

4 =             Excellent

 

This process attempts to numerically rate each tourism product on a five-point scale, based on the knowledge of the topic by the analyst. Although this process relies on the judgment of the evaluator, it allows a great deal of information to be summarized very concisely.  A description of the criteria used for the evaluation is described in Table 3-2.

 

Each product is evaluated and the numbers totalled for each row.  (See Table 3-4)  The higher the number, the “better” the possible tourism potential for each product.  It is important to note that all twelve evaluation criteria (column headings) are unweighted meaning all topics are deemed to be similar in importance.  This was done intentionally so as not to skew the evaluation towards any one product or group of products.

 


 

Table 4-3

Tourism Product Evaluation Criteria

 

Evaluation Criteria

Description

 

 

Resource Criteria:

 

 

Quantity

The extent, size or amount of the resource to support the product.

 

 

Quality

 

The quality of the resource from an activity or tourism perspective.

 

 

Accessibility

 

The ease with which the product can be accessed relative to distance, safety, terrain and parking.

 

 

Seasonality

 

The number of months or seasons during which the product can be utilized.

 

 

Market Criteria:

 

 

Existing Market

 

The importance of the product relative to the area’s existing tourism market.

 

 

Trends

 

Consideration of local/regional/national trends in activity participation.

 

 

Market Potential

 

The potential of the product to attract visitors or increase length of stay based on consideration of resource quality, existing market profile and market trends.

 

 

Geographic Origin

 

The number of visitor markets to which the product appeals.  For the purposes of this analysis, the four market categories include: B.C.; Regional (border states and provinces); North American long haul; and International.

 

 

Economic Criteria:

 

Job Creation

The likely job creation potential within the region associated with expanding the market for each product.

 

 

Job Duration

The duration (in weeks/months of the year) of jobs created to support each product. (Should be similar to resource seasonality.)

 

 

Tourism Revenue

The amount of revenue generated (or the amount of money spent) by tourists to participate in the activity.

 

 

Employment Income

The contribution of the product to the generation of employment income based on direct and spin-off job creation.

 

 

 


Table 4-3

Tourism Product-Market Match Evaluation Matrix

 

Tourism Product

Resource Criteria

Market Criteria

Economic Criteria

Total

Score

 

Quantity

Quality

Access

Season

Existing

Market

Trends

Market

Potential

Geographic

Origin

Job

Creation

Job

Duration

Tourism

Revenue

Employment

Income

 

Snow Based:

Alpine  Skiing

1

1

1

2

1

2

1

1

2

1

2

2

17

Heli/Cat Skiing

0

2

1

2

1

2

2

2

2

2

2

2

20

Nordic  Skiing

4

3

2

2

2

3

3

2

1

2

2

1

26

Non-Alpine Winter

3

3

2

2

1

3

3

2

2

2

2

2

29

Ski Touring

3

3

2

2

1

3

2

2

1

2

1

2

24

Snowmobiling

4

3

3

2

3

3

3

2

2

2

2

2

31

Water Based:

Freshwater Fishing

4

4

2

2

2

2

3

2

2

2

2

1

28

River Kayak/Canoeing

3

4

2

2

2

2

3

2

2

2

2

2

28

River Rafting

3

3

2

2

1

2

2

2

2

1

1

1

22

Wildlife Viewing

4

4

2

3

3

4

3

3

2

2

2

2

34

Land Based:

Camping

3

3

2

2

2

2

2

3

2

2

2

2

27

Hiking

4

3

2

2

1

3

2

2

1

1

2

2

25

Hunting

3

3

2

1

2

1

2

3

2

2

2

2

25

Industrial

3

3

3

2

2

2

3

3

1

2

2

2

28

Rock Climbing

2

2

1

2

1

1

1

2

1

1

2

1

17

Trail Riding

4

3

2

2

2

2

2

2

2

1

1

1

24

Wildlife Viewing

4

4

2

3

3

4

3

2

2

2

2

2

33

Touring:

Automobile

3

3

2

3

3

3

3

3

2

2

2

2

31

Bus

3

3

2

1

2

3

3

3

2

1

2

2

27

Lake/River

3

4

3

2

2

3

3

2

1

1

2

1

27

Air

3

3

2

2

1

3

3

2

1

1

2

2

25

Services/Themes:

Attractions (Comm.)

1

1

1

1

1

3

3

3

2

2

2

2

22

Attractions (Heritage)

2

4

2

2

3

3

3

3

2

2

2

2

30

Events/Festivals

2

2

2

2

1

3

3

2

1

1

1

2

22

First Nations

2

4

2

2

1

4

4

3

3

2

2

3

32

Food and Beverage

2

2

2

3

2

2

1

2

3

2

2

2

25

Lodges

2

2

2

3

2

3

3

3

3

3

3

2

31

 

( Scale 0 –4  :   0 = n/a    1 = poor   2 = Average   3 = Good   4 = Excellent )

 


Based on the above analysis, the adventure or cultural products selected for analysis here are (in alphabetical order):

 

-        Automobile touring

-        Freshwater fishing

-        Heritage attractions

-        Hiking

-        Industrial Tourism

-        Lodges

-        Non Alpine Winter Activities

-        River Kayaking/Canoeing

-        Snowmobiling

-        Wildlife Viewing

 

 

It is noted that four products scored higher in the ratings but for various reasons were not selected for inclusion here.  The rationale for these changes is as follows:

 

Product

 

Rationale

-        Skiing

Focus is on projects that have a reasonable chance of success in the short to mid-term.  Developing new ski areas is very costly and time consuming.  Furthermore, more suitable terrain closer to population centres exists elsewhere in the province.

 

-        Heli-Skiing

Very good heli-skiing terrain exists in the Cariboo Mountains in the eastern portion of the region.  There is interest in expanding into this area but the base of operations (and the related jobs) would be outside the region providing no direct benefits.

 

-        First Nations

There is an historic and current presence of First Nations people, with long and rich heritage in the area.  However, First Nations were not represented on the project TOS steering committee and have not been part of the planning process.  Although invited to participate, First Nations chose not to and it was considered inappropriate to plan for First Nations products without direct First Nations input and participation.

 

-        Trail Riding

Good resources exist in the study area, but the south Cariboo is better known for trail riding/horse related products.  The Williams Lake/100 Mile area is also closer to markets.

 

 


 

 

4.4    SUMMARY OF FACTORS AFFECTING TOURISM DEVELOPMENT

 

The adventure tourism market is huge with 85% of Canadians participating in one or more nature-related activities.  Nearly 100 million of Americans have participated in an adventure tourism trip in the past five years.

 

The most significant market for adventure tourism is the baby boomer market.  It represents about 30% of the North American market.  This market is travel savvy, well educated, and relatively affluent.

 

They respond to a wide array of travel motivators including adventure, excitement, outdoor recreation, physical activity, personal challenge, opportunity for educational experience, and environmental conservation.  Adventure travellers expect to experience activities of varying degrees of risk and excitement, and are looking for personal growth and achievement.

 

Adventure tourism has been one of the great growth markets of the 1990s.  Growth is expected to continue, but probably not at the same rate.  As well, it is likely that there will be more interest in soft adventure activities, given the aging of the population.  Furthermore, adventure travellers are increasingly seeking experiences that incorporate a number of different activities, such as hiking, kayaking, bird watching and cycling all in one tour or out of one lodge.

 

The products having the most broadly based appeal are auto touring, heritage and cultural attractions, and wildlife viewing.  Products having a more select market due to skills required or special interests are fishing, hiking, river/lake recreation, and snowmobiling.  Regardless of skills required, there is a market for entry-level activities offering instruction and interpretation.

 

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