The Essex County 3% Hotel Occupancy Tax took effect on January 1, 2000. Saranac Lake contains 14 commercial accommodation properties that will be collecting the tax for Essex County. In return, Saranac Lake will benefit from new marketing opportunities and additional marketing funds for promoting the community. This Saranac Lake Tourism Marketing Plan was requested by Director of the Saranac Lake Area Chamber of Commerce for use in planning for best use of revenue derived from the Essex County Occupancy Tax.
Most community forums identifying the unique characteristics of Saranac Lake have highlighted the Village’s recreational opportunities, community spirit, history and small town atmosphere. Drawing on those insights, the business community has identified three main themes for future promotion of the Saranac Lake area, specifically: Healthy and Historic Saranac Lake, Take the Path of Least Resistance, and A Place for Families in the Adirondacks. The Plan elaborates on those themes and identifies four specific tourism marketing initiatives to be achieved in the first year of what is proposed as a five-year tourism marketing effort for Essex County as a result of the occupancy tax. The four Saranac Lake Area-specific initiatives are:
In the Plan are outlined 1st year goals, costs, and expected returns under each initiative, as well as total costs and various measures to gauge progress.
This Saranac Lake Tourism Marketing Plan was requested by Director of the Saranac Lake Area Chamber of Commerce for use in planning for best use of revenue derived from the Essex County Occupancy Tax. On November 10, 1999, the Essex County Board of Supervisors approved the local law that implements a 3% hotel occupancy tax. The law took effect on January 1, 2000 and the first revenues from the tax should become available in July. The law provides that the Lake Placid/Essex County Convention and Visitors Bureau (LP/EC CVB) will receive the funds and that the revenue will be dedicated to marketing four areas of the county based on the number of available room nights per year in each region. A majority of the funds will be used to market the County and the sub-regions as a whole; however, a portion of the funds will be available to local Chambers of Commerce within the County for marketing purposes.
One of the four areas to be marketed by the LP/EC CVB is called the Lake Placid/High Peaks Region and includes the communities of Keene, Keene Valley, Lake Placid, Ray Brook, and Saranac Lake. The Village of Saranac Lake contains fourteen commercial accommodation properties that also lie within Essex County, and thus are required to collect the occupancy tax. Those properties together comprise approximately nine percent of total Essex County "Room Nights." As a result, the Saranac Lake Area Chamber of Commerce will benefit both from the countywide marketing effort and from assistance for priority marketing and promotion efforts identified in this Plan. The Tourism Marketing Plan outlines and describes the tourism marketing activities that the Saranac Lake Area Chamber of Commerce views as high priority uses for those occupancy tax marketing funds.
The priorities outlined in this plan will be reviewed and modified on an annual basis.
2. Brief Overview of Tourism in the Saranac Lake Area
In terms of employment, the New York State Department of Labor estimated in 1998 that travel and tourism employment comprised 23% of employment in Essex County and 9% in Franklin County. The contribution of travel and tourism to total payrolls was somewhat less at 14% of Essex County payrolls and 4% of Franklin County payrolls. In February 2000, the local NYS Department of Labor office looked at the employment data for the area served by the Saranac Lake Area Chamber of Commerce. They classified tourism employment as all employees in three sectors of the local economy: "eating and drinking places," "hotels and other lodging," and "amusement and recreation services." That research effort found that those three sectors contribute 9% of total employment and encompass 15% of all businesses in the Saranac Lake area.
What is more difficult to quantify is how tourism affects employment in the other "non-tourist" businesses. For example, most visitors will buy a gift or two, will purchase some sporting goods or clothing, and will buy gas for their car while they are vacationing in the area. In the first and only systematic study of the economic impact of tourism in the Adirondack Park, two Cornell researchers found in 1984 that 26% of all retail trade and 65% of all non-lodging service sector employment in the Adirondack Park was directly dependent on overnight travel. Those percentages present a much more realistic picture of the importance of tourism to Adirondack communities such as Saranac Lake.
Beyond the numbers and statistics, it is obvious that tourism is an integral part of the Saranac Lake economy presently, as it has been since 1850 when Bill Martin built the first frame building in the region on the shore of Lower Saranac Lake. By 1870 Martin’s could house 250 guests and was recognized as the best run hotel in the Adirondacks. Following Martin, came Apollos (Paul) Smith establishing his first hotels in the Loon Lake and Paul Smiths area, then the Bartlett House built in 1854 between Middle and Upper Saranac Lakes, followed by the Saranac Inn in 1864. In the 1870s, Dr. Trudeau arrived in the Village and initiated Saranac Lake’s world-wide reputation as a health resort. Dr. Trudeau’s work attracted the famous of the day, such as Robert Louis Stevenson who spent the winter of 1887-88 in the Village, further adding to the notoriety of Saranac Lake. In 1887 the railroad was brought into Saranac Lake, establishing the Village as the focal point for experiencing the wonders of the central Adirondacks. The railroad was extended into Lake Placid 6 years later.
Today, the value of tourism to the Saranac Lake economy is evident by the 57 accommodations in the area providing over 580 guest rooms for visitors to Saranac Lake. During the peak of the summer season, most of those accommodations experience 100% occupancy. In addition to overnight guests, Saranac Lake’s tourism economy depends as well on people who are camping in the area, on the many summer home residents around area lakes, and tourists visiting adjacent communities. A number of community events serve to attract both tourists and residents to Saranac Lake. In addition, Saranac Lake’s quality of life, the recent community improvements (i.e., the RiverWalk, Mt. Pisgah Lodge), and the wide variety of family-oriented outdoor recreation opportunities, together contribute to the continued and growing importance of tourism to the local economy.
3. The Saranac Lake Area Chamber of Commerce
The Chamber was incorporated in 1921. Its original purpose was to promote economic development, community betterment, and the welfare of those residing, employed or engaged in business in the Village of Saranac Lake and the surrounding area. The current mission statement reads:
The mission of the Saranac Lake Area Chamber of Commerce is to provide services and representation for its membership and to generate economic development through promotional and marketing strategies.
The area served by the Chamber is the Village of Saranac Lake and the Towns of Harrietstown, North Elba, St. Armand, Franklin, Brighton and Santa Clara. The Chamber Board consists of fifteen members, one-third of whom are elected annually for three year terms. There are five active committees within the Chamber Board: Executive, Nominations, Events, Marketing, Mixer/Annual, and Member/Business Services. In addition to the Director, the Chamber currently has three full-time and one part-time paid employee.
The Chamber has made a number of recent computer hardware and software up-grades, as well as instituting a new database system for recording visitor inquiries. Those improvements will facilitate the efficient and cost-effective implementation of this tourism marketing plan and will allow the Chamber to more accurately monitor the success of the plan. In 1999, the Chamber also developed new promotional pieces, improved their Web site, and worked to better coordinate the community’s events calendar.
4. Unique Tourism Attributes (Sustainable Differentiators) of the Saranac Lake Area
Capitalizing effectively on the tourism potential of Saranac Lake requires building on the unique characteristics that attract visitors to the community in the first place, and that result in return visits. One forum for discussing those unique characteristics occurred in 1995 when 95 Saranac Lake residents met for a community visioning process and identified the major "strengths" of the Saranac Lake community. The top six strengths of Saranac Lake were identified as:
While by themselves, those strengths are not necessarily "sustainable differentiators," they do indicate what characteristics of the community might set it apart from others. Other community planning efforts, such as that sponsored by the Sound Adirondack Growth Alliance (SAGA) in June 1999, have identified the Arts and History as key strengths of Saranac Lake.
In identifying sustainable differentiators, it is important to identify what sets Saranac Lake apart within the region, as well as within the State of New York, United States and the world. A key operating concept is branding: developing an image that is immediately associated with Saranac Lake and with no other community in the area, region and country. The annual Ice Palace is one example of a branding image that very few other places can infringe upon, and that sets Saranac Lake apart from other communities.
Based on the findings of previous community meetings outlined above, and on discussions among the Saranac Lake Area Chamber of Commerce Board of Directors, the three attributes that seem to best represent the unique characteristics Saranac Lake offers to visitors are identified as:
The three unique attributes of Saranac Lake listed above are sustainable as well as valuable differentiators because they correspond well with recent trends in tourism and with the experiences and activities that contemporary tourists are looking for. The following sections place each of the three sustainable differentiators within the perspective of current recreation and tourism demand.
Historic tourism is one of the fastest growing tourism segments: According to presentations at the recent Conference on Adirondack Tourism (November, 1999), cultural and historic tourism continues to grow. Over fifty percent (53%) of travelers participate, with 20% using it as part of the reason for their trip, but with only 5% to 10% report it as the primary motivation of the trip. That information indicates that historic and cultural tourism is very popular, but that it needs to be heavily promoted to visitors once they decide to visit and after they arrive in the area. Websites, brochures and maps are all crucial to promoting historic sites; once they became aware that historic sites are in the area, visitors will patronize them in great numbers.
In addition to the recent growth in historic and cultural tourism, the historical and cultural traveler contributes a valuable addition to the mix of tourists visiting the Saranac Lake area. Cultural visitors spend more than the average tourist ($615 vs. $425 per person), they stay in the area longer (5.7 nights vs. 4.4 nights), they participate in more activities on average, they are more likely to be a repeat visitor, and they do more shopping than the average tourist.
Healthy & Historic Saranac Lake capitalizes on this growing interest in historic tourism.
Outdoor recreation demand continues be grow. In 1999, the sixth annual outdoor recreation survey of 2000 U.S. households completed every year since 1994 found the following (www.funoutdoors.com):
Take the Path of Least Resistance keys in on the growing interest in ecotourism, adventure tourism and the continued growth in water-based recreation. It also relates to the "Green Travel" and ecotourism segment of the tourism industry, a high growth segment of the industry. Recent data indicates that 83% of travelers support Green Travel and will pay more to support it.
"To spend time with family" is one of the most common reasons for taking a vacation. Families comprise 50% of all vacation travel and the importance of family travel to the tourism economy continues to grow. Over two-thirds (65%) of US residents also say that Sense of Place (beauty, history, culture, environment) is the main reason they travel. Other major factors in taking a vacation include: relieving stress, rest & recreation, beauty, safety, and ability to participate in a wide variety of activities. Key characteristics visitors are looking for include: a wide variety of activities, soft adventure, and a hassle-free experience. Time is often more important than money to travelers, especially since families are continuing the trend of taking several short breaks a year.
A Place for Families in the Adirondacks highlights Saranac Lake’s small town atmosphere, variety of events and easy access to recreation opportunities. The Saranac Lake area can effectively target the large family segment of tourism, and would be especially successful if the variety of family activities available is increased over the next few years.
The Essex County Visitors Bureau marketing plan (1999-2002) has two major, measurable objectives:
The Essex County Plan also identifies five related goals:
The Saranac Lake Area Tourism Marketing Plan, while recognizing and supporting those goals for Essex County and the Whiteface ski area, identifies four major 1st year marketing initiatives specific to the Saranac Lake area:
If successfully addressed, those four initiatives for Year 1 of this tourism marketing plan also will result in the five Essex County Plan goals being achieved in the Saranac Lake area (i.e., sustaining existing business, increasing lodging, expand shoulder season business, etc.).
This section outlines how the Saranac Lake area’s unique tourism assets can be applied towards completing the four Saranac Lake-specific tourism marketing initiatives with the aid of the financial assistance provided by the 3% Essex County Hotel Occupancy Tax revenues. The goals under each of the four major marketing initiatives, as well as an outline of costs and expected results are described in A. through D., below.
A. Capitalize on Initiation of Scenic Train Service between Saranac Lake & Lake Placid
Current Situation: The train is expected to start running regular excursion trips between Saranac Lake and Lake Placid in September 2000, where there has not been a regular train schedule since the early 1970s – almost 30 years (with the exception of limited runs during the 1980 Olympics). The Old Forge excursion train carries an average of 60,000 passengers a year and the newly initiated North Creek excursion train carried 20,000 passengers in its first year. The embarking and disembarking of potentially hundreds of people a day could be a tremendous boon to certain segments of the Saranac Lake business community, including retail stores, restaurants, art galleries and accommodations. However, the economic tourism impact of the train can only be as good as the planning, preparations, service and convenience offered to those visitors stepping on and off the train at the newly refurbished Union Depot in Saranac Lake.
As of March, 2000, there was little to no local coordination of how those new visitors will be greeted at the station and how they will be directed – and transported – to the historic sites, businesses and services they might be interested in. While the re-establishment of train service has been a political, environmental and transportation issue, the economic success of train service is now a tourism, marketing and customer service issue. In addition, the NYS Department of Transportation plans to attach walkways to each of the railroad trestles along the rail line. The possibility of linking Saranac Lake and Lake Placid with a bicycle/hiking/ski trail in the railroad corridor adds another tourism opportunity that should be anticipated and planned.
1st Year Goals: There are five first year goals for addressing this tourism deficiency:
Costs: Costs for year one to achieving those goals entail $8,000 for the interpretive panels, $10,000 for staffing the train station during the train season, $3,000 for new publications and brochure racks, and $2,000 for train-related staff time. Total costs: $23,000.
Expected Results: Will sustain and improve existing business by bring additional customers into Saranac Lake during the period of operation. This activity should also expand business in the shoulder season, primarily during the Fall when train will run into October. It will also increase mid-week business.
B. Market Aggressively to Visitors already in the Saranac Lake Area
Current Situation: During any week in the summer, there are tens of thousands of people staying within twenty miles of Saranac Lake, but many of them may never venture into businesses in the Saranac Lake area. For example, Fish Creek and Rollins Pond campsites near Upper Saranac Lake have a combined weekly occupancy of over 10,000 people during every week between June 30 and September 1. During mid-August, that occupancy rises to 14,000 people per week. The combined occupancy of summer homes around Upper Saranac Lake and Lake Placid is over 3,000 people a day during the month of August.
While the focus of tourism advertising and marketing is generally on attracting people to the Adirondack region, little has been done – other than over-loading brochure racks -- in terms of marketing to those who are already here. During the summer of 1999, the Saranac Lake Area Chamber of Commerce initiated a marketing program for the Fish Creek campgrounds with a Camper Appreciation Day. The Chamber plans to expand on that program by targeting other campgrounds, summer camps and seasonal residents.
1st Year Goals: There are four first year goals for addressing this tourism deficiency:
Costs: Costs for year one to achieving those goals entail $5,000 for local and regional advertising, $1,000 Web site development, and $5,000 for local marketing-related staff time. Total costs: $11,000.
Expected Results: Will sustain and improve existing business by attracting more visitors into town. Will contribute to an increase of mid-week business because the target audience are usually in the area for a week or more. Will contribute somewhat to expanded business in the shoulder season, however that will not be a major impact of this activity.
C. Better Coordinate Saranac Lake’s "First Impression" on Visitors and Improve on Available Amenities and Family Activities
Current Situation: The appearance of Saranac Lake provides the "first impression" to visitors and can have a major influence on their decision to make a return visit. Downtown signage, lighting, trees, flowers, garbage pick-up, holiday lighting, and the general appearance of buildings are a few of the on-going community issues that are the responsibility of no one group or organization. The Chamber of Commerce is involved with all those activities to some degree, but without a coordinated effort for the area’s appearance, some things are not done and others are only partially completed. The tree care issue is one example, with the result that now many of the downtown trees need to be replaced.
In addition, the Village of Saranac Lake, and surrounding towns of Harrietstown, North Elba and St. Armand are now the owners and mangers of a wide variety of tourist and resident amenities. For example, Riverside Park, Berkeley Square, RiverWalk, Lake Colby Beach, Mt. Pisgah, Dewey Mountain, two tennis courts, and even the road around Moody Pond are all amenities that provide both visitors and residents with recreational enjoyment. The quality of those amenities and the recreational experiences derived from them can making a lasting impression on visitors and affect their decision to revisit Saranac Lake, or to possibly make Saranac Lake their home.
While its recent All America City award demonstrates the Village’s recent accomplishments, Saranac Lake could do more to maintain and improve on the family and recreation amenities of the community. It is important for two reasons. First, "a wide variety of activities" is one of the main influences people’s choice of where to take a vacation. Second, once families visit, community amenities can play a major role in their having an enjoyable visit and have a strong influence on their decision to make a return visit.
1st Year Goals: There are three first year goals for addressing this tourism deficiency:
Costs: Costs for year one to achieving those goals entail $5,000 for Park District feasibility study, $2,000 for developing the new business and new resident packets, $1,000 Web site work to better incorporate amenities and attractions into the Saranac Lake Web site, and $10,000 for attraction-related staff time. Total costs: $18,000.
Expected Results: Any activity that improves the overall appearance of Saranac will yield benefits, primarily in the form of return visits, so improving the "first impression" can be one of the most valuable tourism promotions available. This activity also will make the area more attractive to families and lead to longer stays, thereby sustain and improve existing business and increase lodging occupancy. One of the goals of this activity will be to improve amenities and activities in the shoulder seasons and in winter.
D. Initiate an International Marketing Campaign for Saranac Lake
Current Situation: International tourism is one of the fastest growing segments of the tourism industry. While the average U.S. resident has 13 vacation days per year, in Italy the average is 42 days, France 37 days, and Germany 35 days. Japan and Korea each have an average of 25 vacation days. Saranac Lake already has international recognition to some degree through its participation in the Sister City program with Entrains, France, and because of its history as a health resort and second home to luminaries from around the world. Concurrently, the growth of the Internet can bring visibility of Saranac Lake to anyone in the world. Saranac Lake currently does not have an international marketing program.
1st Year Goals: There are four first year goals for addressing this tourism deficiency:
Costs: Costs for year one to achieving those goals entail $3,000 for contacts with international travel writers, travel agencies, etc. $1,000 for Web site work to improve features of interest of international travelers, $1,000 for language translations, and $3,000 for international travel-related related staff time. Total costs: $8,000.
Expected Results: The improved web site and translated materials focused on international visitors should lead to a more positive experience for foreign visitors and result in increase visitation. This activity will benefit existing businesses as the number of foreign visitors increases. Foreign visitors are not always peak season travelers, so this activity should increase lodging occupancy and other business in the shoulder season.
7. Accurate Measurement of Progress and Success
The Saranac Lake Area Chamber of Commerce will measure the success of this Tourism Plan on an annual basis. Three main measures will be used to gauge progress:
- Documented changes in occupancy rates for accommodations located in the Essex County portion of Saranac Lake (zip code 12983) as documented by the Occupancy Tax revenue data available for Essex County.
- Documented changes in inquiries received by the Chamber.
- Discussions with business owners in the community on revenue growth and decline over the past year.
In terms of occupancy rates, there are currently 846,071 room nights available in Essex County. Over the past three years, an average of 398,790 of these room nights (47%) were booked annually. About nine percent of those room nights – 80,300 – exist in the Essex County portion of Saranac Lake. Initial estimates are that the Occupancy Tax could generate over $105,000 in revenues from Saranac Lake accommodations in the first year. If accurate occupancy data for those Saranac Lake accommodations will not be forthcoming from Essex County from the Occupancy Tax revenue database, the Chamber will try to encourage the accommodations to provide monthly occupancy figures to the Chamber in order to measure progress toward the goals.
In terms of inquires received by the Chamber, the new computer systems and database programs will allow for an accurate count of inquiries. The activities the visitor is most interested in are also documented, allowing for a detailed assessment of the seasons and activities of most interest to visitors, and how those preferences are changing over time.
Finally, in terms of documenting change in business as perceived by the business owners, the Chamber staff will discuss with business owners their observations on how business is changing, especially during the shoulder seasons. The Chamber Board meetings will also feature this topic on a regular basis. On an annual basis, the Chamber will review this Tourism Plan and make changes according to progress made on priorities to date, and to address any new issues that arise.