Full report available in pdf format

 

The Niagara Region’s Tourism Opportunities
The U.S. and Ontario Markets

 

Part I: Product Development Opportunities
August 2007

 

Part II: Marketing Implications
July 2008

 

Executive Summary

 

Ontario residents and Americans constitute Niagara Region’s largest source markets for overnight travellers (88% in 2004). Although the Ontario market has exhibited positive growth over the past seven years, the US market appears to be in decline.

Part I of this report focuses on these two source markets and identifies opportunities for product development around the Region’s main product strengths: the falls, the vineyards and the casinos.

Size of Market

51% of all American travellers and 53% of all Ontario travellers participated in one or more of the Region’s core strengths while on an overnight trip anywhere in the world in the 2004-2005 period. Among American travellers, going to casinos was the leading attraction for visitors (35% of all US travellers), followed by viewing natural wonders (21%) and participating in wine-centred activities (17%). Among Ontario travellers, going to casinos was the leading attraction (32% of all Ontario travellers), followed by viewing natural wonders (25%) and participating in wine-centred activities (19%).  Although the Region’s core strengths are popular amongst travellers, they are not generally trip motivators for the vast majority of travellers; only 20% of Americans and 15% of Ontarians who participated in these activities took trips that were motivated by these activities – a fact that has implications regarding the variety of things that a destination should offer to its visitors.

Opportunity Group

Not all of the Americans and Ontarians who participated in the activities identified as product strengths for the Niagara Region could be considered as potential visitors to the Region. The opportunity group includes only those who: a) are motivated to travel by at least one of these activities (wine, natural wonders, casino¹ ), b) find Ontario to be an appealing travel destination and believe there are many good reasons to travel to the province, and c) have indicated that the choice of destination is very or extremely important to them (and that they are the ones choosing the destination and not someone else).  The resulting opportunity set for Niagara Region includes 3.2 million Americans and 525,000 Ontarians.

Within the American market opportunity set, the natural wonder segment had the largest number of travellers (1.9 million), followed by the wine segment (1.0 million) and the casino segment (871,000).  44% of the American market opportunity set had travelled to Ontario in the 2004-2005 period.

Within the Ontario market opportunity set, the natural wonder segment had the largest number of travellers (270,000), followed by the casino segment (232,000) and the wine segment (130,000). 92% of the Ontario market opportunity set had travelled within Ontario in the 2004-2005 period.

Product Development

US Market
Supplementary products that could enhance the Niagara Region’s primary products (wine, natural wonder and casinos) centre around food, shopping, strolling around to see buildings and architecture (with implications regarding downtown revitalization) and attractions such as historic sites and amusement parks.

Ontario Market
Supplementary products that could enhance the Niagara Region’s primary products centre around food, shopping, strolling around to see buildings and architecture, attractions such as historic sites and nature parks.

In addition to these products, there are some other issues that, according to various studies, the Niagara Region would need to address:

 

• Regional image and product awareness²
• Transportation from Niagara to other Ontario and from Niagara to the US
• Satisfaction of travellers’ needs by existing product ³

 

Future Growth

Overall, Niagara’s opportunity group from the US market is expected to experience moderate growth in 2015 and 2025 (3% and 9%, respectively).  Although the natural wonder segment will continue to have the largest proportion within the opportunity group in 2015 and 2025, it is the wine segment that is expected to show the most growth over that period (10% and 20%, respectively).  Participation in all shopping-related activities is expected to grow at moderate rates, with the exception of fruit picking at farms (which will be down slightly).  Participation in food-related activities is also expected to show healthy growth rates. Growth in attraction-related products will show slow to moderate growth rates, while interest in golfing and pop/rock concerts is expected to decline. Attendance at ethnic festivals and shopping at greenhouse/ garden centres were identified as emerging travel activities in 2015 and 2025.

Looking at Niagara’s opportunity set within the Ontario market for 2015 and 2025, growth rates are expected to be substantially higher than those for the opportunity set within the US market (10% and 20%, respectively).  Similar to the US findings, the wine segment is expected to show the most growth looking ahead to 2015 and 2025 (increases of 11% and 28%, respectively). Participation in shopping-related activities is expected to grow at healthy rates, as is participation in arts-related attractions such as live theatre with or without dinner and stand-up comedy. Golfing and dining at farms are expected to show healthy growth in 2015 and 2025. Products for which there is expected to be declining interest among Ontario travellers include: attending food and drink festivals, participating in harvesting operations, visiting amusement parks, viewing fireworks displays and mini-golfing. Attending ballets was identified as an emerging product for 2015, but drops out of the priority list in 2025.

 

Marketing Profiles

The second part of the report features information on demographics, travel behaviour and media preferences for each of the Region’s three core segments in order to inform targeting choices and marketing decisions. Each segment is then further distilled into activity clusters, allowing marketers and others to pinpoint their specific markets and to targets them effectively.

 

 

 

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