Tourism industry looks at 'new normal'

EAST GULL LAKE - In dealing with a "new normal," the tourism industry has expectations for a better 2010.

"We have survived a very difficult year and things are starting to improve," said John Edman, Explore Minnesota Tourism director. Edman attended the annual state tourism conference Tuesday and Wednesday at Cragun's Resort in East Gull Lake. The event attracted about 300 people across a broad expanse of the travel and hospitality industry.

The recession had the tourism industry struggling across the nation, Edman said. Concerns about saving money and job security in a tough economy had people hunkering down across the board. The industry coined the term "staycation" in an attempt to attract travelers who needed a break but weren't going to go far from home.

Edman said 2010 won't be a robust year, but it is expected to be better than 2009.

"We are starting to see more positive signs," Edman said of the economy. And that is welcome news in a lakes area where tourism is a significant part of the economy and a job generator.

The conference theme focused on ways to succeed in the "'new normal of today's altered economy." The state's tourism office reported consumers have changed travel spending patterns, are staying closer to home and spending less. Not surprisingly, consumers are looking for deals and tend to make travel plans at the last minute.

Edman said it isn't business as usual and tourism businesses are adapting. One of the changes is selling a vacation experience more than an individual property. Consumers have made a serious shift in spending patterns, have a pent-up demand to get away and have lots of reasons to want to escape everyday stress. In the new economy, those consumers are seeking value and looking for things to do with family and friends.

Research by the state's tourism office shows people want to connect with the outdoors, using trails, lakes and parks. The state reports increases in visits to state parks and record-breaking attendance at festivals and events. Edman sees a strength in the Brainerd lakes area because of its proximity to the Twin Cities metro population as people who need a get-away look to get in the car instead of into an airplane.

"Demand is going to start to increase," Edman said. While a rebound is expected for 2010, Edman said the gradual, slow recovery isn't anticipated to be more sustained until 2011.

Getting business and meeting travelers back to area resorts has another hurdle - public perception. Edman said companies don't want to be seen as irresponsible spenders and that can translate to holding business meetings at hotels instead of resorts even if the resort presents a greater dollar value.

The tourism conference provided participants with strategies in developing new business. Ideas included amateur sports, "green" travel, tapping into a Canadian market by offering them a southern destination, travel tours, packages, and use of social media like Facebook and Twitter.

"The content was excellent," said Lisa Paxton, Brainerd Lakes Chamber chief executive officer. Paxton said real-life examples were used along with good tips about attracting business. One guest speaker pointed out the opportunity is there to expand market share even in this down economy.

Edman said more can be done in terms of partnerships and collaborations, such as resorters working together and with other businesses and festivals to attract consumers who don't care about territorial barriers. Using social media is part of the mix, Edman said. And he noted the relationship with consumers has changed.

"You have to have a conversation with consumers," he said, noting consumer generated content is important such as reviews even when they can be critical in some aspect. The state tourism office is rebuilding its own database and how it is shared so properties can tap into more information about regional offerings.

As for the conference, Edman said he hoped participants heard it is not business as usual but left with optimism the recovery is starting. Edman said the industry has to be smart to survive in the new economic reality.

Edman said: "The old way of business isn't going to work anymore."

RENEE RICHARDSON may be reached at renee.richardson@brainerddispatch.com or 855-5852.