A Study of the Convention & Tourism Industry in Salina, Kansas
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A STUDY OF THE
CONVENTION AND TOURISM INDUSTRY
IN SALINA, KANSAS
FEBRUARY, 1984
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1100 Charterbank Center
920 Main Street
Kansas City, MO 64105
(816) 221-6500
Mr. Robert L. Whitworth
Executive Vice President
Salina Area Chamber of Commerce
115 West Iron Avenue
Salina, Kansas 67401
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Dear Mr. Whitworth:
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The accompanying report pertaining to a study of the conven-
tion and tourism industry in Salina, Kansas has been prepared in
accordance with our engagement letter of December 8, 1983 and adden-
dum letter of January 10, 1984.
The attached report includes analyses of the local lodging
market, review of the Bicentennial Center facilities and usage, profile
of competitive cities and their convention facilities, estimates of
convention market share for each compet i t i ve ci ty, / estimates of the
economic impact of convention and tourist business in Salina, results
of a survey of Kansas Association Executives, and recommendations
regarding improving convention and tourism business in Salina.
The report is based on estimates, assumptions and other
information developed from research of the market, knowledge of the
industry and meetings with you, or your representatives, during which
you provided us certain information.
The sources of information
and bases of the estimates and assumptions are stated in the report.
The terms of this engagement are such that we have no obligation to
revise the report to reflect events or conditions which occur subse-
quent to February 10, 1984. However, we will be available to discuss
the necessity for revision in view of changes in the economic or
market factors affecting the city.
A memhcT ot Horwath & Horwath Inrcrnati(mal with affilitlrcd offices worldwide.
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Since the projections are
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to uncertainty and variation
tions which are inherently subject
depending upon evolving events, we do not represent them as results
that will actually be achieved.
Our report is intended for the information of the Committee
and Salina Bed Tax Board. It may also be made available to interested
local government officials and the business community.
Ne i ther the
report nor its contents may be referred to or quoted in any registra-
tion statement, prospectus, loan or other agreement or document
without our prior written consent.
February 10, 1984
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TABLE OF CONTEN~-
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INTRODUCTION I-I
Background I-I
Engagement Scope I-I
Study Limitations 1-3
EXECUTIVE SUMMARY 11-1
General Market Analysis
Hotel Market Analysis
Bicentennial Center Analysis
Economic Impact of Convention and Tourism
Business in Salina
Profile of Competitive Kansas Cities and Salina's
Share of the State Convention Market
Survey of Kansas Association Executives
Recommenda t ions
Objectives
Hotel Market
Bicentennial Center
Convention and Visitors Bureau (CVB)
General
Projections
II-I
II-2
II-2
II-3
II-4
II-5
II-6
II-6
II-6
II-7
II-7
II-8
II-9
SALINA GENERAL MARKET OVERVIEW
III-l
Employment
Population and Retail Sales
Central Business District (CBD)
Tourist Attractions
Transportation
Summary
III-l
III-2
III-3
III-4
III-5
III-7
SALINA HOTEL MARKET ANALYSIS
IV-7
Recent Lodging Market Trends
Market Segmentation
Competitive Quality of Hotel Supply
Competitive Cities - Convention Market
Competitive Cities - Tourist Market
summary
IV-2
IV-2
IV-6
IV-IO
IV-ll
IV-13
BICENTENNIAL CENTER ANALYSIS
V-I
Facilities
Summary - Facilities
Historical and Projected Usage
Entertainment Events
County Fair Grounds/4-H Facilities
Summary
V-2
v-3
V-4
V-5
V-6
V-7
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TABLE OF CONTENTS (CO~TINUED}
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ECONOMIC IMPACT OF CONVENTION AND TOURISM BUSINESS
IN SALINA
Economic Impact Based on Hotel Analysis
Assumptions
Multiplier Effect
Economic Impact of Entertainment/Sports Events
Summary
PROFILE OF COMPETITIVE KANSAS CITIES
Manhattan
Great Bend
Hays
Dodge City
Garden City
Wichita
Topeka
Kansas City, Kansas
Overland Park
summary
SALINA'S SHARE OF THE STATE CONVENTION MARKET
Primary Competitive Convention Market
Secondary Market
summary
SURVEY OF KANSAS ASSOCIATION EXECUTIVES
Summary
RECOMMENDATIONS
Status Quo Situation
Objectives
Hotel Market
Current Situation
Recommenda t ions
Bicentennial Center
Current Situation
Recommendations
Convention and Visitors Bureau (CVB)
Current Situation
Recommenda tions
Convention and Tourism
projected Economic Impact of Recommendations
Introduction
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Page
VI-I
VI-4
VI-4
VI-4
VI-6
VI-6
VII-I
VII-2
VII-4
VII-8
VII-IO
VII-ll
VII-12
VII-16
VII-17
VII-18
VII-21
VIII-I
VIII-2
VIII-3
VI II-4
IX-I
IX-6
X-I
X-2
X-3
X-4
X-4
X-5
X-6
X-6
X-6
X-7
X-7
X-8
X-g
X-ll
X-ll
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TABLE OF CONTENTS (CONTINUED)
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Page
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RECOMMENDATIONS (CONTINUED)
New Convention Hotel - Convention Impact
Bicentennial Center - Additional
convention/Trade Shows
Tourism - Additional Demand
Summa ry
Other Impact Considerations
Bicentennial Center
Lodging Tax Receipts
Major Tourist Attractions
Summary
X-12
X-l2
X-13
X-13
X-14
X-l4
X-IS
X-l6
X-16
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INTRODUCTION
BACKGROUND
The Bed Tax Board Committee of Salina, Kansas commissioned
Laventhol & Horwath to conduct a study of the convention and tourism
industry in Salina, evaluate Salina's competitive / position within
the state market and develop recommendations to improve Salina's
competitive position and optimize economic benefits to the community.
ENGAGEMENT SCOPE
The scope of our work in complet ing the study included:
.. .meeting with members of the Bed Tax Committee, Chamber
of Commerce and Convention and Visitors Bureau to dis-
cuss the market and obtain certain data;
...meeting with management staff of the Bicentennial Center
in order to tour the facility, review financial and
operating statistics, discuss marketing plans and their
opinions with regard to Salina's convention and tourism
business;
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INTRODUCTION
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...meeting with city, bank, i~ndust.ry and other local repre-
sentatives to discuss the economic climate and proposed
developments;
...surveying, inspecting and interviewing lodging properties
and operators in Salina in order to quantify levels of
demand associated with convention and tourism activities
and evaluate lodgi ng fac i 1 i t.ies in terms of the ir compe-
titiveness in attracting demand;
.. .surveying competitive cities throughout the state and
interviewing Convention and Visitors Bureaus, convention
hotel operators and management of convention/civic cen-
ters in order to identify demand meeting in other mar-
kets and their relative marketing strengths and weak-
nesses;
.. .surveying a cross section of Kansas Association Executives
to determine their past and future convention sites, site
selection criteria, facility requirements and attitudes
toward Salina as a meeting site;
... interviewing state tourism officials in Topeka to evaluate
state-wide tourism marketing programs and obtain lodging
tax receipt data for competitive markets;
... reviewing existing, planned and proposed hotel, conven-
tion and other commercial developments within the state
which might impact Salina's competitive position;
...reviewing pertinent local economic and demographic data;
...estimating the recent economic impact of convention and
tourist spending in Salina;
...estimating Salina's recent share of the state convention
market;
...projecting Salina's
done to improve
competitive position if
marketing programs and
nothing is
facilities;
...developing recommendations for each major element of the
convention and tourism industry in order to increase
demand and maximize economic benefits; and
...preparation of this report summarizing our findings,
conclusions and recommendations.
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INTRODUCTION
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STUDY LIMITATIONS
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Our study is based on observations, interviews, interpreta-
tions and analyses of information and opinions made available to us,
as well as our knowledge and experience in the industry.
In any
study of" this magnitude and complexity involving personal, political,
economic and social elements, it becomes necessary to identify general
cause and effect relationships rather than specifics.
Whereas, certain individuals in the local community may
have conflicting views and interests, our recommendations are based
on the interests of the total market rather than anyone segment.
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EXECUTIVE SUMMARY
The following highlights the primary findings, conclusions
and recommendations of our study of the convention and tourism industry
in Salina, Kansas. This summary should be read in conjunction with
the body of the report.
References to specif ic sections and pages
are also provided, where appropriate, to assist the reader in cross-
referencing.
GENERAL MARKET ANALYSIS
o
The Salina economy has experienced only moderate growth
during recent years in comparison to other markets in
Kansas.
o
The Central Business District (CBD) is underdeveloped
with respect to retail, restaurant and lodging facilities
to support the Bicentennial Center and to attract more
convention and tourist business to the city.
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EXECUTIVE SUMMARY
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HOTEL MARKET ANALYSIS
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The Salina lodging market comprised 18 properties and
1,236 available rooms in 1983 with two major nodes of
development located at the two interstate interchanges
in the northeast and southwest parts of Salina. (Ref-
erence IV-I)
o
Market occupancy during the period 1979 to 1983 reached
a high of 61.9 percent in 1982 and a low of 55.8 percent
in 1979. The market is seasonal and significantly
influenced by highway travel and the health of the
economy. (Reference IV-2)
o
The lodging market comprised 45 percent commercial, 13
percent convention/group, 40 percent tourist and two
percent contract demand in 1983. (Reference IV-5)
o
The lodging supply currently lacks a competitive conven-
tion hotel to effectively compete in the state association
and regional group markets. The 144-room Hilton Inn,
which had accommodated most of the convention demand
Salina captured in the past, closed in January, 1984 due
to lack of business and deterioration in the physical
plant.
BICENTENNIAL CENTER ANALYSIS
o
The Bicentennial Center (Center), serves as the conven-
tion center and exhibition facility for the market and,
as such, has been responsible for generating approxi-
mately 50 percent of the group demand experienced by
the lodging properties. Without the Center, Salina
would not have been able to host many conventions,
trade shows, sporting events, banquets and major enter-
tainment events over the past four years. (Reference
section V)
o
The Center is limited in the concession, dressing room
and public restroom facilities to support entertainment
and sporting events and the 21,000-square foot arena is
not very flexible for use as a smaller facility.
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EXECUTIVE SUMMARY
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Concert attendance has b~~n:-fes"i)on.5"-ibie for over 50
percent of total entertainment attendance at the Center.
These types of events generate the greatest prof it to
the Center but generate the least demand for lodging.
(Reference V-6)
o
The Center's location is not readily accessible to
hotels, restaurants and retail stores, therefore, it
has not been considered as a primary convention site
by state associations. Additionally, lodging operators
generally do not identify the Center as a principle
source of bus iness, due partly to the distance factor.
ECONOMIC IMPACT OF CONVENTION AND TOURISM BUSINESS IN SALINA
o
Total economic impact from convention and tourist demand
meeting and visiting the Salina area was approximately
$24.2 mi'llion in 1982 and $25.5 million in 1983. Eco-
nomic impact is based on direct expenditures of visitors
at hotels and the Bicentennial Center and the estimated
multiplier effect caused by the turnover of these expen-
ditures in the local economy. Economic impact does not
include spending by the commercial market or restaurant,
retail and other travel-related expenditures by persons
not staying overnight at one of the area lodging proper-
ties, except for estimates of attendance at the Center.
(Reference VI-5)
o
The United States Travel Data Center reports that total
travel-related expenditures in Saline County were appro-
ximately $56.3 million in 1981. Based on our analysis,
we feel that this is a reasonable estimate and that our
estimate of economic impact from the convention and
tourist market segments reflects the relative mix of
business in the market as a whole, including non-hotel
guest related expenditures.
EXECUTIVE SUMMARY
"'II-4
PROFILE
OF THE
OF COMPETITIVE KANSAS CITIES AND}SA~INA~~'SHi~~
STATE CONVENTION MARKET
o
The following cities
as Salina's primary
demand based on our
convention facilities
and visitor bureaus:
within the state were
competitors for state
survey of competitive
and interviews with
Manhattan
.
Hutchinson
.
Lawrence
Hays
Great Bend
Garden Ci ty
Dodge City
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identif'ied
convention
hotel and
convention
Salina's share of convention demand within this market
declined from 14 percent in 1982 to 8.1 percent in 1983.
This represents a decline in ranking from third to sixth
place within the market. (Reference VIII-2)
o
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The secondary market includes the following cities:
Wichita
Topeka
Kansas City, Kansas
Overland Park
Salina's share of convention demand within this market
declined from 7.8 percent in 1982 to 4.3 percent in 1983.
This represents a decline in ranking from fourth to fifth
place within the market. (Reference VIII-3)
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EXECUTIVE SUMMARY
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o Salina I s overall share of tfieCSt'a-te"coiivention market has
declined due to the decline of the Hilton Inn, the only
competitive convention hotel Salina had to offer. On a
state-wide basis, Salina ranked sixth in 1982 and tenth
in 1983 in terms of city-wide convention demand generated
by leading convention headquarter hotels in each competi-
tive city.
SURVEY OF KANSAS ASSOCIATION EXECUTIVES
o
The most important criteria considered by association
executives in selecting a convention site are:
.
Quality of hotel rooms
Number of meeting rooms
.
Delegate costs
Size of headquarter hotel
Quality of restaurants/entertainment in host city
o
The survey indicated that Salina lacks image and appeal
and quality hotel facilities, according to association
executives who choose not to meet in Salina. (Reference
IX-5)
o
The following cities are the most frequently identified
sites for future conventions:
Wichita
Kansas City, Missouri
.
Topeka
Hutchinson
Overland Park
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EXECUTIVE SUMMARY
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Objectives
The basic objectives of our recommendations are as follows:
o
Improve Salina's visibility and the market's awareness
of facilities and services available.
o
Promote growth in supply of and demand for hotel and
convention facilities in the market.
o
Coordinate marketing efforts of the CVB, hotel operators
and the Bicentennial Center.
o
Identify short-term and long-term markets available to
Salina, given its competitive market position.
o
Prioritize efforts to maximize potential economic benefits
to the community.
Hotel Market (Reference X-5)
o
Lodging operators should continue to upgrade and renovate
facilities.
o
Properties should coordinate more effectively with one
another in packaging deals to attract larger groups to
the city.
o
Properties should improve reporting
tistics to the CVB in order to
marketing efforts and the impact
held at the Center.
of operating sta-
assess progress of
of certain events
o
Property operators should create package plans in coordi-
nation with Center events in order to improve business.
o
Highway signage should
old and dated signage
traveled.
improved,
in place
pa rt icu larly where
along the routes
be
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EXECUTIVE SUMMARY
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o Motor coach tour business"'sf16iilcf be heavily promoted
by the hotels and the CVB.
Bicentennial Center (Reference X-G)
o
Establish a booking policy to prioritize usage of the
facilities, particularly where local events interfere
with bookings of conventions and trade shows.
o
Increase advertising in trade publications to generate
more inquiries from trade shows and convention groups.
o
Target marketing and sales efforts to entertainment and
trade show events.
o
Explore alternative uses of the arena for athletic
events.
o
Expand restroom, dressing room
facilities in order to improve
sports/entertainment events.
and concession stand
usage and sales during
o
Evaluate the market need for tele-conferencing facilities.
o
Promote new events in conjunction with another city in
order to create additional demand for the market.
Convention and Visitors Bureau (CVB) (Reference X-7)
o
Become more aware of all facilities and services avail-
able in the market.
o
Redesign lodging guides and brochures.
o
Work on CBD redevelopment efforts.
o
Attend most Kansas Association Executive meetings and
functions.
o
Increase the travel budget to attend more regional and
national trade shows and conventions in order to make
contact with planners and prospects.
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EXECUTIVE SUMMARY
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o Promote motor coach to*:-bd;;ln'e~~"" through direct mail
and advertising and by arranging familiarization tours
for travel agents and tour operators.
o
Evaluate shuttle bus systems for city-wide conventions
and trade shows.
o Continue to subsidize convention center rentals and
other similar costs for groups which otherwise might
not meet in Salina.
o
Propose an additional one percent lodging tax or occupa-
tion fee for restaurants in order to generate additional
funds for marketing, promotion and subsidy of convention
and trade show groups.
o
Develop a video tape presentation on the city for use
in sales blitzes and at conventions.
General (Reference X-9)
o
Assist/attract a major convention hotel development
which would f ill a void in the market and allow Salina
to compete more directly with other cities in the state.
Our market analysis indicates that a 150 to 200-room
hotel could be supported and would generate incremental
demand for the market.
o
Develop immediate marketing
western region to attract
based in this area.
efforts in the central and
state and regional groups
o
Identify regional (four-state) groups potentially avail-
able in the intermediate and long-term marketing plan.
o
Assist/attract in the development of a major tourist-
oriented attraction such as a mini-theme park or off
price factory outlet mall.
o
Attract more restaurant and entertainment developments
to the area.
o
Promote a new city slogan which lends itself to promot-
ing convention, tourism and travel.
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EXECUTIVE SUMMARY
II-9
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Further
business
Salina.
relations with 'l-oc"aT- association
leaders to stimulate interest in
membe rs
meeting
and
in
o
Evaluate renovation and expansion of existing county
facilities in Kenwood Park to augment the Center's
facilities and capabilities in hosting more and larger
events.
Projections
o
We estimate the combined potential direct economic impact
of several of these recommendations would result in
$10.2 million (expressed in constant 1983 dollars).
(Reference X-14)
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SALINA GENERAL MARKET OVERVIEW
Salina, Kansas is located in central Kansas at the inter-
section of Interstates 70 and 135.
The economy is primarily based in manufacturing and agri-
culture. Government, education and service industries are also signi-
ficant sectors of the economy.
EMPLOYMENT
The following table presents non-agricultural wage and
salary employment for Saline County and indicates high concentrations
in manufacturing, trade and services.
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SALINA GENERAL MARKET OVERVIEW
..,III-2
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1978 Percent 1983 Percent
Manufacturing:
Durable goods 2,775 12.5% 2,575 11. 9%
Non-durable
goods 1,625 7.3 1,950 9.0
Mining 25 .1 25 .1
Construction 1,350 6.1 1,000 4.6
Transportation
and public
utilities 1,475 6.6 1,175 5.4
Trade:
Wholesale 1,950 8.8 1,850 8.5
Reta il 4,650 21.0 4,350 20.0
Finance 825 3.7 875 4.0
Services 4,650 21.0 5,150 23.7
Government 2,850 12.9 2,775 12.8
Total 22,175 100.0% 21,725 100.0%
Unemployment
rate 3.2% 5.7%
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SAdNE- 'COUNTY
NON-AGRICULTURAL WAGE AND SALARY EMPLOYMENT
Average annual
percent change
1978/1983
(1.4% )
4.0
.0
(5.2
(4.1
(1.0
(1. 3
1.2
2.2
( .5
.4%)
Source: Kansas Job Service.
POPULATION AND RETAIL SALES
Salina's relative rank within the state, in terms of popula-
tion and retail sales is presented in the table on the following
facing page.
Population and retail sales growth have been moderate in
Salina compared with Hays, Wichita, Overland Park and Garden City,
which exper-ienced higher rates of growth.
Retail sales growth, in
particular, appear to be flat in Salina when taking into account
.
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SALINA GENERAL MARKET OVERVIEW
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inflation. However, Salina's market trade area and excellent highway
access would suggest that the retail market is under built.
Most of Salina's retail development has occurred on the
south side of the city along U.S. Highway 81.
A proposed 350,000-
square foot mall is planned for development at the northeast quadrant
of the intersection of Magnolia Street and Ninth Avenue on the south
side of Salina. The site comprises 114 acres of which 45 acres would
be developed for the mall. Three anchors, J.C. Penney, Dillards and
Sears are anticipated to locate at the mall, as well as 45 to 50
specialty shops. The land has been purchased by the developer, but
no definite financing for the project has been announced at this time.
CENTRAL BUSINESS DISTRICT (CBD)
The city is currently in the process of working with
American Redevelopment, Inc., a Minnesota developer to enclose a four-
block area of the downtown district and create a pedestrian mall.
Other plans provide for renovat ion of several bu ildi ngs into off ice
space and for specialty restaurant/retail use.
Development of the CBD is vital in order to attract more
visitors and conventions to events at the Bicentennial Center.
Currently, attendees at events must travel three miles to south
Broadway to eat at restaurants and shop at retail stores.
.
.,
SALINA GENERAL MARKET OVERVIEW
nI-4
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TOURIST ATTRACTIONS
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A number of attractions in the area draw visitors to Salina,
particularly during the summer.
In Abilene, 20 miles east of Salina, visitors can find the
Greyhound Hall of Fame and the Eisenhower Center.
The Greyhound Hall of Fame opened in 1973, and the museum
highlights the history of the breed and the sport of greyhound racing.
Attendance for the past five years is presented in the following table.
GREYHOUND HALL OF FAME
ABILENE, KANSAS
Year
Attendance
Percent
change
1979
1980
1981
1982
1983
34,900
31,800
30,700
33,400
35,800
(8.9%)
(3.5 )
8.8
7.2
Source: Greyhound Hall of Fame.
The Eisenhower Center comprises the boyhood home of the
late President and a museum which was dedicated as a research institu-
tion in 1962. Attendance at the Center is presented in the following
table.
.,
SALINA GENERAL MARKET OVERVIEW
YII-5
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EISENHOWER CENTER--'" ..-' .
ABILENE, KANSAS
Percent
Year Visitors change
1979
1980
1981
1982
1983
146,368
150,145
163,313
155,157
134,522
2.6%
8.8
( 5.0
( 13.3
Source: Eisenhower Center.
Lindsborg, located 17 miles south of Salina, is a small
Swedish community which hosts an annual Swedish festival. There are
also Swedish shops and other sights in this small village.
The Brookville Hotel, originally built as a cattlemen's
hotel in the 1870's, today houses a restaurant, renown for its fried
chicken and family style menu. It is located 14 miles west of Salina.
Several other historic landmarks and attractions are located
nearby and lakes throughout the region attract tourists, particularly
in the summer.
TRANSPORTATION
Interstate 70 and Interstate 135 form the north and west
boundaries of Salina, while providing the city with high levels of
transient traffic.
. .-.'~
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SALINA GENERAL MARKET OVERVIEW
~III-6
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Interstate 70 is a major east/weest transcontinental highway
connecting the major population centers across the United States
including Indianapolis, St. Louis, Kansas City and Denver.
Interstate 135 extends north of Salina where it connects
with u.S. Highway 81 and Interstate 29. Interstate 135 connects with
Interstate 35 south of Salina near Wichita and provides access to
Oklahoma City and Dallas.
Recent traffic counts on the interstates in Salina are
presented in the following table.
Interstate 70 east at K 143
and Ohio Street
AVERAGE DAILY TRAFFIC COUNTS
Average annual
percent change
1978 1982 1978/1982
8,170 8,185 .0%
7,490 7,310 .6 )
8,065 8,390 1.0
7,345 7,295 ( .2 )
7,515 7,980 1.5
5,975 6,640 2.8
Interstate 70 north on K 143
Interstate 70 west at K 143
and Interstate 70
Interstate 135 north of Interstate
70 and Interstate 135 intersection
Interstate 135 at K 140 and
Interstate 135
Interstate 135 south at Crawford
Street i;nterchange
Source:
Kansas Department of Transportation.
.
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SALINA GENERAL MARKET OVERVIEW
.
Air service
is provided by
. - "
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scfttii-a- Mun ic ipal
Airport.
Air
Midwest provides eight flights daily to Kansas City, Oklahoma City
and Wichita. Frontier Airlines suspended air service to Salina during
1983 due to low traffic.
Rail service is provided by Union Pacific, Missouri Pacific
and Santa Fe.
Due to Salina's excellent highway access, 14 common carriers
serve the Sal ina area.
Graves Trucking maintains a large terminal
in Salina and at one time was headquartered there.
SUMMARY
Salina is a principal city within the "triangle" formed by
Kansas City, Wichita and Salina. The area has not experienced signi-
ficant recent economic developoment, but planned projects' in the
retail sector and the Central Business District should enhance growth.
.
.
. ,
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SALINA LODGING MARKET PROFILE
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1983
Rooms Year
Property available opened Primary markets Amenities
Hil ton Inn ( 1) 144 1967 Convention/group R,M,P,CT
Best Western
Mid America Inn 108 1968 Commercial R,M,P,CT
Holiday Inn 109 1955 Commercial R,M,P,CT
Sali na Inn (2 ) 108 1966 Tourist R,M,P,CT
Red Coach Inn 104 1979 Tourist R,M,P,CT
Ramada Inn 104 1975 Commercial R,M,P,CT
Best Western Heart
of America Inn 100 1971 Commercial P,M,CT
Motel 7 82 1979 Tourist
Howard Johnson Motel 75 1967 Commercial M,P,CT
Flamingo Motel 54 1951 Tourist P
Budget Host Vagabond 45 1964 Commercial P,M,CT
Travelodge 40 1961 Commercial R,M,P
Airliner Motel 39 1959 Contract P,CT
Log Cabin Motel 30 1952 Tourist CT
Budget King Motel 30 1952 Tourist CT
Trade Winds Motel 26* 1969' Tourist P,CT
Starli te Motel 21 1954 Tourist
81 - 40 Motel 17 1948 Tourist
1,236
(1) Hilton closed in January, 1984.
(2) Salina Inn closed in March, 1984.
* 70 units total, only 26 available to transients.
Amenities: P - Pool
R - Restaurant
M - Meeting rooms
CT - Cable television
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SALINA HOTEL MARKET ANALYSIS
Salina's lodging supply comprised 18 properties and 1,236
available rooms in 1983 as detailed in the facing table. In the first
three months of 1984, the Hilton Inn and Salina Inn closed. The
largest concentration of properties is located along U.S. Highway
81 (Broadway). Motel development along Broadway occurred during the
late 1950's and early 1960's prior to the construction of Interstate
70. During the 1970's several properties were developed along east/
west Interstate 70 and north/south Interstate 135 which currently
comprise the two major nodes of hotel development in Salina. with a
hotel property located at each quadrant of the Interstate 70 and 81
Alternate interchange, the focus of future lodging development is at
the Interstate 135 and Crawford Street interchange on the southwest
s ide of Sali na.
A 60-room Super 8 motel recently opened in April,
1984 east of the interchange on Crawford Street. A proposed 110-room
hotel with banquet facilities for 600 persons is rumored for develop-
ment at the southwest quadrant of the interchange.
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SALINA HOTEL MARKET ANALYSIS
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.
RECENT LODGING MARKET TRENDS
Since 1979, total demand in the market has grown at an
average annual rate of 3.1 percent with market occupancy ranging from
a low of 55.8 percent in 1979 to a high of 61.9 percent in 1982 as
presented in the following table.
SALINA LODGING MARKET
Years
1979 1980 1981 1982 1983
Estimated:
Rooms occupied 236,200 263,700 260,400 273,400 270,100
Rooms ava ilable 1,159 1,1861 1,186 1,2111 1,236
Market occupancy 55.8% 60.9% 60.1% 61. 9% 59.9%
Market average rate $21 $22 $23 $24 $25
1 Red Coach Motel open half year in 1979 and expanded by 49 rooms
in mid-1982.
Source: Laventhol & Horwath.
MARKET SEGMENTATION
Hotel demand in Salina is comprised of four major market
segments including commercial, convention and group, tourist and
contract business.
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SALINA HOTEL MARKET ANALYSIS
IV-3
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The
commercial
market
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includes"individual businessmen,
government and other industry representatives who typically travel
Monday through Thursday and seek accommodations offering a high pricel
value relationship, food and beverage outlets either on premise or
adjacent to the property, and locations close to their destination
or source of business.
The convention and group market, a primary subject of this
study, represents business meetings, conferences, seminars and major
convention and association activity generally requiring 50 rooms or
more. Groups usually meet for two to three days and require meeting
and banquet space.
We have identified the following properties which histori-
cally have accommodated the majori ty of group demand in the market:
o
Best Western Mid-America Inn
o
Holiday Inn
o
Howard Johnson Motel
o
Ramada Inn
o
Salina Inn *
o
Red Coach Inn
o
Hilton Inn *
o
Best Western Heart of America Inn
o
Budget Vagabond Inn
*
Closed during early 1984.
, -
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.
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SALINA HOTEL MARKET ANALYSIS
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While all of these properties have.-accommodated group busi-
ness, only the Hilton Inn, Red Coach Inn, Heart of America Inn and
Mid-America Inn have meeting and banquet space capable of accommodating
larger groups. The Hilton Inn, however, was the only property which
offered facilities somewhat competitive with other major convention
properties in the state.
Tourist demand is generated by transient travelers passing
through Salina on the interstate highways and by other visi tors to
the area.
This segment of the market is most prevalent during the
summer months and during the late spring and early fall. Most proper-
ties indicate that summer occupancy runs in the low 90 percent range
with high multiple occupancy factors per room. This influx of tourists
in the summer generates substantial revenues for other service-related
businesses including gas stations, restaurants and retail stores.
Contract demand refers to trucking, railroad, airline and
other companies or individuals who contract with motels to provide
rooms on a daily basis and, generally, at discount rates.
The following table presents our estimate of total demand
and market segmentation in 1983 for the Salina lodging market.
I:"~.'-. J<: C?
SALINA HOTEL MARKET ANALYSIS
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SALINA LODGING MARKET
1983 Estimated
annual
room-niqhts Percentage
Commercial 120,500 45%
Convention/group 35,100 (i) 71,
Tourist 107,600 40
Contract 6,900 2
Total 270,100 100%
As the data indicate, tourist demand is a dominant segment
of the hotel market and should continue to grow in the future as the
destination markets of the rocky mountain region (Denver) and the
southwest region (Oklahoma City and Dallas) continue to expand and
attract people from the north and. east.
Salina is in an excellent
geographic position, located at the junction of two interstate high-
ways and midway between St. Louis, Missouri and Denver, Colorado on
Interstate 70 to capture this segment of the market.
In the convention/group market, Salina's hotels are mostly
oriented toward small business and district meetings which typically
can be accommodated at one hotel. Only the Red Coach, Hilton, Holiday
Inn, Heart of America Inn and Mid-America Inn indicated significant
percentages of group business related to state associations and
other large convention groups.
.
.
'-':-r
SALINA HOTEL MARKET ANALYSIS
IV-6
. J
-
Since most convention and group activity occurs during the
non-summer months, it is important that Salina attract this market
to improve off-season occupancies.
COMPETITIVE QUALITY OF HOTEL SUPPLY
Within the Salina market, individual properties exhibit
certain competitive advantages and disadvantages which help determine
their share of the market, locally.
However, in competing in the
state convention market, the headquarter convention hotels in each
city and their facilities, amenities and market position within the
state contribute to market share.
The Hilton Inn was generally considered as the headquarter
convention hotel in Salina, due to the number of rooms (144), meeting
facili ties for 500 and its proximi ty to the Bicentennial Center.
At 144 rooms, the Hilton was one of the smallest headquarter
hotels in the state, but was able to commit a greater percentage of
rooms to a group, because of its relatively low share of the local
commercial and tourist markets. Meeting space included 5,400 square
feet in four rooms with a total banquet capacity of 375 in the main
ballroom. The funct ion space was located on the second level of
the property and this limited its use for trade shows and exhibits.
Unlike most other headquarter properties in the state, the Hilton
did not offer an indoor pool and recreation area and the property is
not located in close proximity to other properties.
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SALINA HOTEL MARKET ANALYSIS
IV-7
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Past management of the Hilton indicate that the Bicentennial
Center provided moderate increases in convention business for the
hotel. However, the Hilton Inn had already declined to the point of
operating at low occupancies by the time the Center began attracting
more business.
Additionally, although the Hilton is the closest
property to the Bicentennial Center, it is not wi thin easy walki ng
distance and, therefore, could not be effectively co-marketed with
the BiCentennial Center as a complete convention center. Our local
hotel survey indicates that hotel operators generally do not consider
the Bicentennial Center as an integral part of their market.
Part
of this attitude is attributable to the location of the Center and a
high percentage of drive-in delegates for conventions rather than
overnight guests.
The Red Coach Inn relies on their "Fundome". area to support
meeting facilities.
This open atrium area surrounding the indoor
pool is of ten used to seat large banquets of up to 400 (rectangular
tables), or to set-up exhibit booths.
The meeting/banquet rooms
are adequate in size for smaller groups but are not competitive in
quality and size with most of the other major convention hotels in
the state.
At 104 rooms, the Red Coach Inn is also 1 imi ted in the
groups which can be accommodated at the property. With a significant
share of the commercial market, the Red Coach is further limited in
the number of committable rooms to a group.
.
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SALINA HOTEL MARKET ANALYSIS
, IV-8
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The Heart of America Inn, located across from the Red Coach
Inn added a large function room of approximately 3,500 square feet
in 1976 and 48 additional guest rooms.
Total banquet capaci ty is
for 350 persons (rectangular tables).
The banquet room lacks in
quality lighting and finish, and the hotel does not have a food and
beverage outlet, therefore, all funct ions must be catered by local
companies. This makes the property less competitive with other con-
vention hotel properties. At 100 rooms, the Heart of America Inn is
also limited in the number of committable rooms to convention groups.
The Mid-America Inn is currently renovating their restaurant
and refurbishing guest rooms as part of an ongoing process of facility
upgrading. The motor hotel has a banquet capacity for 300 persons
(rectangular tables) and cross-sells the Heart of America to conven-
tions, although the "sister" property is located on the opposite side
of town.
The owner of the Heart of America and Mid America Inns indi-
cates plans to expand either one or both of the properties by adding
convention facilities for up to 800 persons.
No def ini te plans or
financing for these proposed expansions was made known to us at the
time of our fieldwork.
The new owners of the Salina Inn were planning a renovation
of the property, including refurbishing all guest rooms, expanding
the banquet capacity to 650 persons and enclosing the pool. A Ouality-
I.
--...;'1
SALINA HOTEL MARKET ANALYSIS
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Comfort Inn affiliation was also planned for the property.
During
March, however, the Salina Inn closed and the future of the property
is unknown at this time.
The Holiday Inn is an older property and lacks large meeting
space to accommodate groups. The property is not competitively located
with respect to Interstate 70 transient demand and, therefore, does
not attract a large share of the market.
The Howard Johnson motel has refurbished most of its guest
rooms during the last two years and management indicates plans to
add a sauna, whirlpool and exercise room during 1984.
A lID-room hotel with meeting/banquet space for 600 persons
is planned for development across from the Red Coach Inn. The property
would offer both mid-priced and budget-priced rooms and recreational
facilities, including an indoor pool area. Completion of the project
is planned for late 1985, however, no definite announcement has been
made at this time.
The trend in the local lodging market appears to be one of
upgrading and refurbishing which is necessary to maintain market
share and improve the quality of the facilities, thus justifying
future price increases.
,-_",~r;'
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SALINA HOTEL MARKET ANALYSIS
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Proposed expansions and new hotel development would improve
the competitiveness of the market and allow for larger groups to
meet in one hotel or at least wi thin the same area, as in the case
of a planned hotel development at Interstate 135 and Crawford Road.
However, these developments are not sufficient enough to significantly
improve Salina's overall competitive position within the state,
particularly in view of recent and planned hotel developments in
competitive markets.
On the other hand, no further development in
Salina will negatively impact Salina's relative position in the
state and allow other markets to expand their hotel supply in attempts
to increase convention business.
COMPETITIVE CITIES - CONVENTION MARKET
Our local hotel survey indica tes the followi ng ci ties as
those most often cited by hotel operators as being competitive with
Salina in attracting conventions.
0 Topeka 0 Kansas City, Missouri
0 Wichita 0 Kansas City, Kansas
0 Hutchinson 0 Hays
0 Manhattan 0 Great Bend
0 Lawrence 0 Garden City
.
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SALINA HOTEL MARKET ANALYSIS
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Topeka and Wichita were menti:o.ned -first; nowever, many
operators qualified Wichita as competitive in the larger group market
which is not potentially available to Salina. Conspicuously missing
from the operators' list is Overland Park, which most Convention and
Visitors Bureaus and managers of convention hotel properties through-
out the state indicated as currently competitive and soon to be a
major force in the state and regional convention markets.
Hays and Great Bend were identified as secondary competition
by Salina hotel operators, however, our state-wide analysis indicates
that these two markets had a greater share of convention business in
1983 than Salina and will be much more competitive in the near future
due to recent hotel developments in these two cities.
COMPETITIVE CITIES - TOURIST MARKET
Interstate 70 traffic is responsible for generating the
majority of tourist demand for Salina. Salina is a primary stopping
point for tourists because of its location on Interstate 70, approxi-
mately midway between Denver, Colorado and St. Louis, Missouri.
~ -,
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SALINA HOTEL MARKET ANALYSIS
IV";' I 2
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The following Kansas cities are also located on Interstate
70 and compete with Salina for the tourist and transient markets.
0 Kansas City
0 Lawrence
0 Topeka
0 Junction City.
0 Abilene
0 Hays
0 Colby
0 Goodland
Kansas City and Lawrence offer a number of major tourist
attractions including major league sports, Worlds of Fun and Oceans
of Fun, the Country Club Plaza and the Un ivers i ty of Kansas, wh ich
are of interest to bus tours and a segment of the tourist market
with the time to enjoy these attractions.
Topeka is a larger market, offering almost twice the hotel
rooms as Salina, and tends to attract a substantial share of the
tourist market.
The state capitol is also of regional interest to
tourists.
The primary competitive cities for Interstate 70 traffic
are Junction City, Abilene, Hays, Colby and Goodland. Salina is in
an excellent position to dominate this market by offering the largest
~
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SALINA HOTEL MARKET ANALYSIS
IV-B'
supply of available rooms and by promod:'ng "Abilene . attractions,
including the Eisenhower Center and the Greyhound Hall of Fame.
However, the general lack of any other major attraction in the Salina
area and the perceived image of the city limits tourist demand.
Hays promotes Fort Hays and Fort Hays State University
events and the CVB advertises that Hays is located within one day's
drive from Denver, Colorado.
The two highways, Interstate 70 and Interstate 135, provide
Salina with high levels of traffic.
Interstate 70 is more critical
to Salina motels, due to the nature of transient and commercial traffic
using this Interstate. Marketing efforts should be concentrated on
Interstate 70 as opposed to Interstate 135, which provides more
commercial traffic rather than tourist traffic.
SUMMARY
Salina offers a sizeable inventory of motel rooms, but the
city lacks a major competitive convention headquarter hotel.
While
the Hilton provided groups with acceptable facilities, it was not
competitive with most of the other convention headquarter properties
within the state.
.
.
.-.0..' ~"':'I
SALINA HOTEL MARKET ANALYSIS
IV-l-4'
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Recent national trends in the touflsff-market indicate that
contemporary economy-priced lodging is in demand and significant
development of new supply has already been seen across the country.
As surrounding markets improve their competitive supply by
adding new budget properties, Salina will experience increased competi-
tion for the tourist market, particularly during the shoulder seasons
and on weekends.
proposed developments in the local lodging market, both new
properties and renovations/expansions, would contribute to improving
the available supply in Salina, but do not represent significant
changes in Salina's overall competitive position in the state conven-
tion and tourist markets.
,
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BICENTENNIAL CENTER ANALYSIS
The opening of the Bicentennial Center (Center) in June,
1979, was a great accomplishment for the city and afforded Salina
opportunities to host conventions, trade shows, sporting events,
large banquets and entertainment events, as well as local meetings
and other civic functions.
Since its opening, however, the Center has not attracted
convention business to the extent that was originally anticipated.
Our analysis indicates the following reasons contributed to less
than optimal capture of the convention market:
...low supply of competitive and commitable motel rooms
to the convention market;
'" increased competition from other convention facilities
throughout the state including "Holidome" hotels;
...poor location of the Center;
.. .overlap of market trade areas, particularly Topeka and
wich ita; and
...general lack of quality entertainment and restaurant
development in Salina.
"f'
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BICENTENNIAL CENTER ANALYSIS
V_"':2
FACILITIES
H'" .
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The Center comprises an 18,160-square foot exhibition/
banquet hall, an 8,030-seat arena and eight meeting rooms on the
second level.
Heritage Hall, the exhibition area, is divisible into four
equally sized rooms and has a maximum banquet capacity for 1,500
persons. A well equipped prep/holding kitchen services Heritage Hall
and is used by outside caterers during banquet functions.
The arena offers approximately 21,000 square feet of floor
space and can be used for trade shows and exhibits.
The arena is
primarily used for conventions and trade shows and for local sporting
events, primarily high school and college basketball games and state-
wide wrestling tournaments.
Approximately 300 exhibit booths can be set-up at the
Bicentennial Center.
This opens up the Center's market to both
small and medium-sized trade shows.
By contrast, Century II in
Wichita and Kemper Arena in Kansas City, Missouri, generally attract
larger shows of 500 or more exhibitors.
The arena also attracts an average of twelve concerts per
year. With a seating capacity of 8,'000 for concerts, the arena is
4,200 seats smaller than the Wichita Coliseum but 4,000 seats larger
,.~ " ~
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BICENTENNIAL CENTER ANALYSIS
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than the
Municipal
Auditorium
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Topekai:":"'AcC6fdIng' to
New
West
Contemporary, a major concert promotor in Kansas City, the Bicentennial
Center is an excellent facility for concerts, one of the best in the
region. However, due to the size of the market area and the lack of
media exposure, the Bicentennial Center is limited in the number of
concerts it can host, particularly "big" name attractions.
A major limitation of the Center is the under-sized conces-
sion, locker room and restroom facilities. With only two stationary
concession areas and limited restroom facilities for a facility of
this size, both concession sales and attendance at concert events,
in particular, have been affected.
For example, concession sales at
concert events in 1983 was $.78 per capita compared with a $1.20 per
capita at the Coliseum in Wichita for similar events.
The number of meeting rooms are adequate for the Center,
however, hotel meeting space is under-utilized to support certain
functions which take place at the Center. The distance between hotels
and the Center is the major limiting factor.
SUMMARY - FACILITIES
The Center is adequately sized for the target markets avail-
able to Salina and to support the current hotel market. Limitations
in public facilities and usage of the arena could be improved.
\
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BICENTENNIAL CENTER ANALYSIS
_y-4
--.--"..,
.__';.:11
HISTORICAL AND PROJECTED USAGE
"
The table on the facing page presents event statistics for
1980 through 1983.
As is true in most smaller markets, the Center
generates most events from local sources which generate limited
economic impact, the result of new dollars being spent in the local
economy.
The table on the following facing page presents full facility
bookings at the Center for the last three years. These events required
the use of the arena and Heritage Hall as well as meeting rooms. The
list indicates a number of repeat bookings which is typical for civic/
convention centers and points to the successful handling of groups
by the Center. The Center management reports that full usage of the
f aci 1 i ties for these types of events has resul ted in turned-away
business. Consideration of a booking policy to maximize the economic
impact of events at the Center would help to solve this problem. The
lack of suitable large scale hotel convention facilities in Salina
has also increased demand for the Center's facilities, particularly
from local users.
Convention usage and attendance generally represent the
biggest economic impact for the economy.
A change in attendance
reporting for this type of event in 1983 appears to have increased
convention attendance 700 percent over 1982 levels. A breakdown of
convention and trade show events for 1983 indicates that attendance
\
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FULL FACILITY EVENTS
BICENTENNIAL CENTER
1983
Kansas State Conference
Mid-America Corvette Club Car Show
Nemokan Midwest Floral Association
Kansas Funeral Directors
Isis Shrine Spring Ceremonial
Kansas State Square Dancers
Southern Plains Regional Kids Wrestling
Ambucs Leisure Living and Sport Show
Lee Company Trade Show
Mid America Farm Expo
c'. ..
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Tournament
1982
U.S. Fire Public Education
Special Olympics
Aid Association for Lutherans
Lee Hardware
Ambucs Leisure, Living and Sports Show
Mid America Farm Expo
Kansas Federation of China Decorators
Shrine Activities
Kansas Future Homemakers of America
Kansas Fish and Game
Isis Shrine
American Legion
Kansas State Square Dancers
Smokey Hill River Festival
Skyfire Car Show
Salina Catholic Diocese
Kansas Hospital Association
Isis Shrine
1981
Kansas Water Well
Kansas Special Olymics
Isis Shrine
Lee Hardware
Ambucs Sports Show
Kansas Physical Therapy
Isis Shrine
Kansas Funeral Directors
Kansas Jaycee's
Kansas Bankers
Kansas Department on Aging
Kansas State Square Dancers
Amateur Radio Club
Shrine
Type: C - Convention
TS - Trade show
E/S - Entertainment/sports
o - Other, local
,_, ." !''-,7".
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C
TS
C
C
o
C
E/S
TS
TS
TS
C
o
C
TS
TS
TS
C
o
C
C
o
C
C
o
TS
o
C
o
C
o
o
TS
TS
C
o
C
C
C
C
C
C
o
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Attendance
1,700
1,500
860
650
550
2,500
2,700
4,800
2,000
45,000
250
1,200
600
2,000
5,800
35,000
450
700
2,800
500
700
1,400
1,800
10,000
1,800
757
800
700
350
1,775
830
2,150
6,500
300
1,200
375
325
1,400
1,500
1,600
600
800
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BICENTENNIAL CENTER ANALYSIS
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at trade shows comprises approximately 88 percent of the total as
detailed in the following table.
Estimated total potential
room-nights of hotel demand
BICENTENNIAL CENTER
1983 EVENTS COMPARISON
Conventions Trade shows Total
11 12 23
9,212* 66,320 75,532
837 5,527 6,364
10,200(1) 7,400(2) 17,600
Total events
Attendance
Average attendance per event
* Convention attendance may not always include spouses and families
of registered delegates.
(1) Assumed average of 2.5 days per event, 1.8 o'ccupancy factor per
room, and 80 percent of attendees require overnight accommoda-
tions.
(2) Assumed average of one day stayover, 1.8 occupancy factor per
room, and 20 percent of attendees require overnight accommoda-
tions including exhibitors.
Source: Bicentennial Center management; Laventhol & Horwath.
ENTERTAINMENT EVENTS
Entertainment events include concerts, sporting events,
the circus and other types of entertainment related events. The
following table indicates the significance of concert events to the
total entertainment usage of the Center.
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BICENTENNIAL CENTER ANALYSIS
V-6,r
BICENTENNIAL CENTER ENTERTAINMENT EVENTS
1980 1981 1982 1983
Total events 37 19 21 33
Concerts 18 11 14 12
Other events 19 8 7 11
Total attendance 100,490 53,944 102,688 187,689
Concerts 56,470 30,262 76,626 58,665
Other events 44,020 23,682 26,062 129,024
In a recent analysis completed by the Center management
staff, entertainment/sports events were found to yield an average
44.9 percent net profit before fixed charges compared to 29.3 percent
for conventions/trade shows.
While entertainment events do not
generate the same economic impact to the local economy as do conven-
tions, these events are vital in terms of reducing the Center's
operating losses. Additionally, the utilization factor of available
seats for concerts could be improved through increased promotion
efforts and scheduling, thereby generating more profits from concert
events.
COUNTY FAIR GROUNDS/4-H FACILITIES
Saline County maintains several buildings in Kenwood Park
which are available for agricultural and horse shows, meetings, trade-
shows and major city events such as the Mid-America Farm Expo, the
Tri-Rivers Fair and the Smokey Hill River Festival which attracts
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BICENTENNIAL CENTER ANALYSIS
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nearly 70,000 people per day.
The facili->ties- -are "geiierally not
considered adequate for convention and banquet usage.
Based on the historical usage of the Bicentennial Center
and the ava ilabil i ty of the county bu ildi ngs at Kenwood Park, total
convention and trade show space could be expanded. The county faci-
lities would need to be renovated so as to be compatible with the
Center and allow for overflow usage.
SUMMARY
The Bicentennial Center has been a valuable asset to Salina
in attracting major conventions, trade shows, concerts and other
events, as well as serving as a civic center.
The Center's location is not readily accessible to hotels,
restaurants and retail shops; therefore, it has not been considered
as a primary convention site by state associations.
The facilities available are best suited for medium-sized
trade shows, entertainment and sporting events and should be promoted
to these markets throughout the state and region.
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ECONOMIC IMPACT OF CONVENTION AND TOURISM BUSINESS IN SALINA
The economic impact of spending by convention delegates
and tourists visiting for a convention, meeting, trade show or over-
night stay is the primary objective of promoting convention and
tourism in a city. The influx of new dollars generates jobs, sales
and taxes and has a cascading effect on the entire economy.
Typically, economic impact is expressed in terms of the
direct and indirect expenditures' by delegate and/or visitor spending.
Generally, economic benefits are first realized by hospitality-related
businesses.
Based upon
information compiled by the International
Association of Convention and Visitors Bureau (IACVB) National
Convention Income Survey, the following expenditure patterns are
typical for state and regional conventions.
.
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ECONOMIC IMPACT OF CONVENTION AND TOURISM BUSINESS IN SALINA
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DELEGATE EXPENDITURES
STATE AND REGIONAL CONVENTIONS
Percent
Type of expend i ture of tota 1
Hotel room and incidentals
37.5%
Total food and beverage
26.3
16.5
1~.7
Retail
All other expenditures
100.0%
Source: IACVB.
Convention and tourist spending in an area depends upon a
number of factors including population size, price levels, scope and
duration of conventions and visits, mode of transportation and general
demographic characteristics.
Tourists, for example, tend to stay
one night in Salina and usually eat one meal, either dinner or break-
fast. Based upon our market research, we estimate that in addition
to average hotel room charges, tourists spend an average of $15 per
\
person in Salina for food and other incidentals.
Assuming a convention delegate spent approximately 40 per-
"
cent (rounded up to nearest ten percent) of total expenditures on
hotel room charges or $28 per room in Salina for 1983 based on our
hotel ana lys is, the total expendi ture per convention delegate per
day (delegate-day) would have been $70.
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ECONOMIC IMPACT OF CONVENTION AND TOURISM BUSINESS IN SALINA'=Vfr-3
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Based on the total convention and ,t,rade!'h91!.::.attendance in
J:'.... ;~ _.' ..n" ..J ".
1983, as reported by the Bicentennial Center management and an average
event duration of 2.5 days, total delegate expendi tures might be
calculated as follows:
Total convention/trade show attendance
75,532
x Average length of stay in days
2.5
x Average delegate expenditure per day
$70
Total delegate direct expenditures
$13,218,100
If all attendees are assumed to have spent $70 per day,
then all attendees would have required hotel accommodations for an
average of 2.5 days. Assuming 1.8 guests per room for conventions,
the total demand would have been 104,905 room-nights. At this demand
level, convention room-nights would have been responsible for 39
percent of the total accommodated demand in the market.
Our hotel
survey indicates that the convention market is substantially smaller,
approximately 13 percent of total demand, including business groups.
As a result of this analysis, we conclude the following:
. :.reported convention attendance does not represent the
number of delegates requiring hotel rooms: and
... average expenditures per convention delegate attending
a convention in Salina are signif icantly lower than
national averages due to lower hotel room rates, lower
food and beverage prices, the lack of entertainment in
the city and the nature of Salina's convention market,
which is primarily state-oriented rather than regional.
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ECONOMIC IMPACT OF CONVENTION AND TOURISM BUSINESS IN SALINA
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ECONOMIC IMPACT BASED ON HOTEL ANALYSIS
.. .' ;. ...- .-
Assumptions
We have estimated the economic impact of convention and
tourism in Salina based upon our analysis of the hotel market and
the following major assumptions:
.,. the demand accommodated at area hotels
majori ty of real economic impact from
tourist activity:
represents
convention
the
and
... the estimated market average daily
1983 is representative of average
gate:
rate for 1982 and
room costs per dele-
,
. . . room costs represent approximately 50 percent of total
expenditures per delegate-day: and
...a percentage of attendees at Bicentennial Center events
do not use hotel rooms and, therefore, spend less per
day, estimated at approximately $25 per attendee.
Multiplier Effect
The multiplier effect accounts for additional economic
benefits resulting from direct expenditures of convention delegates
and visitors. This includes the employment and income generated by
the influx of new dollars to the area and the resulting turnover of
those dollars as goods and services are purchased in the local economy.
Based upon the Socio- Economic Impact Analysis Report completed by a
team of Kansas State University students in the spring of 1983, we
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ECONOMIC IMPACT OF CONVENTION AND TOURISM BUSINESS IN SALINA
,
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have assumed a multiplier of 1.85 and appliE#dit'to direct expenditures
by convention delegates and tourists to account for all other indirect
economic impact.
The following table details our estimates of total economic
impact from convention and tourism in Salina for 1982 and 1983.
TOTAL ESTIMATED ECONOMIC IMPACT
FROM CONVENTION AND TOURISM*
1982 1983
Convention delegates
per hotel analysis (1)
Expenditure per delegate-day
$
67,500
54
$
63,100
56
Direct expenditures
$ 3,645,000
$ 3,534,000
Convention and trade show delegates
from Bicentennial Center analysis
not included in above (2)
Expenditure per delegate-day
47,100 57,700
$ 25 $ 25
$ 1,177,000 $ 1,442,000
211,900 215,300
$ 39 $ 41
8,264,000 8,827,000
$13,086,000 $13,803,000
1. 85 1. 85
$24,209,000 $25,536,000
Direct expenditures
Tourist visitors (3)
Expenditure per tourist
Direct expenditures
Total direct expenditures
x multiplier
Total economic impact from
convention and tourism
* Rounded to thousands.
(1) Based on 37,500 room-nights of demand and 1.8 guests per room.
(2) Based on 20 percent
Bicentennial Center and
requiring hotel rooms.
(3) Based on tourist demand at double occupancy factor.
of conven t ion attendance reported by
80 percent of trade show visitors not
Source: Laventhol & Horwath.
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ECONOMIC IMPACT OF CONVENTION AND TOURISM BUSINESS IN SALINA
VI-6 . :c
ECONOMIC IMPACT OF ENTERTAINMENT/SPORTS EVENTS
Concert events and certain sporting events such as the 4A
State Basketball Tournament are excellent revenue generating events
for the Bicentennial Center and attract a large number of out-of-town
attendees. However, our hotel survey did not indicate a significant
increase in demand attributable to these types of events except for
a 30 to 40 percent increase in area restaurant business, particularly
for concert events.
For purposes of this analysis, we have assumed
that any hotel demand from entertainment/sports events are included
in our estimates of group and tourist demand.
Further discussion of
the benefits which accrue to Salina from these events will be discus-
sed in the Recommendations section of this report';
Additionally,
we have not accounted for gasoline and other travel related expenses
or direct rentals, concession and other sales realized by the
Bicentennial Center ~n our calculations of economic impact.
SUMMARY
The calculation of economic impact depends upon a number
of assumptions and is, at best, a rough estimate.
Perhaps the bes t
measure of impact from conventions and tourism in a market is re-
fleeted in hotel development and occupancies. Since the. Bicentennial
Center opened in 1979, there has been little new hotel development
in the area, and market occupancy has remained relatively unchanged.
,
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ECONOMIC IMPACT OF CONVENTION AND TOURISM BUSINESS IN SALINA
VI-7.:T
While occupancy depends, in large "pafC - upon commercial
demand which is inherently related to the economy and local commercial
developments, convention demand has not increased in Salina to the
point of attracting additional hotel development.
The closing of
the Hilton Inn further demonstrates that Salina has not realized its
full potential in attracting convention groups to the area.
,
VII-I
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PROFILE OF COMPETITIVE KANSAS CITIES
Salina competes with a number of cities within the state
for convention and tourist business both on a direct and indirect
basis. Competing in the convention market depends upon a city's hotel
and meeting facilities, promotion efforts of the hotel sales depart-
ments and the Convention and Visitors Bureau staff, the membership
density in the area, site selection preferences of a group, and other
market factors including the quali ty of entertainment, restaurants
and image of the ci ty.
In the tourist market, some cities offer
major tourist attractions which draw people to the area. Other cities,
with advantageous highway locations, depend upon transient traffic to
support hotels.
The following paragraphs highlight those cities which we
identified as most competitive with Salina, profile their convention
and hotel facilities, and describe their market position in termS of
penetrating the convention and tourist markets. The tables following
page VII-20 summarize this section in terms of comparative statistics
and facilities.
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PROFILE OF COMPETITIVE KANSAS CITIES
VI:I:'- 2
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Manhattan
Manhattan, "The Little Apple" is the home of Kansas State
University (KSU), and the economy is heavily dependent upon the
University as well as agricultural-related industry.
The CVB reports that the University is the number one asset
in attracting conventions and tourists, followed by the Holiday Inn-
Holidome quality restaurants and lounges, Fort Riley and Manhattan's
central location within the state.
Approximately 70 percent of conventions meeting in Manhattan
are state-related. In 1983, total convention delegate attendance was
estimated by the CVB to be 15,000.
The Holiday Inn offers 192 rooms and 10,500 square feet of
meeting/banquet space with total banquet capacity for 600 persons.
A total of 750 lodging rooms are available in Manhattan,
and the 116-room University Ramada Inn complements the Holidome,
particularly in accommodating larger convention groups.
The KSU Student Union offers 3,800 square feet of floor
space and has a banquet capaci ty for 325 persons. The Union is used
mostly for campus-related activities, but is occasionally available
for use by convention groups.
. ": ~
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PROFILE OF COMPETITIVE KANSAS CITIES
-;-~.:1'
VlrI - 3
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A 9, DDD-square foot, 15, DDD-seat sports arena is planned
for development on the KSU campus.
The facility will be primarily
used for KSU basketball games and other sports: however, state-of-the-
art sound, stage and lighting equipment will be available for concert
and other entertainment events. The arena is scheduled for completion
by 1987.
The CVB indicates its marketing strategies include develop-
ing better local contacts with association members to attract conven-
tions and increasing advertising in business journals, newspapers and
other publications throughout the state.
The CVB regards the following cities as most competitive
with Manhattan:
City
Comment
Wichita
Overland Park
Hutchinson
Salina
Lawrence
Although a larger market
Up and coming major competitor in the state
Holidome
Geographical competitor
Holidome
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PROFILE OF COMPETITIVE KANSAS CITIES
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Great Bend
Great Bend is similar to Salina in that it enjoys good state
highway access and serves as a primary trade area in central Kansas,
although Great Bend's trade area is approximately 25 percent smaller
than Salina's. The oil and gas business and agriculture are the two
principle industries responsible for recent economic growth in Great
Bend.
The Highland Manor Hotel and Convention Center is the
major property in Great Bend and offers a total of 225 rooms (includ-
ing the 49-room Economy Motel adjacent to the property) and over
23,000 square feet of meeting/banquet/exhibit space.
The hotel
recently added a 12,500-square foot exhibition hall which the city
markets as the Great Bend Convention Center.
The hotel is similar
to "Holidomes" throughout the state and offers an indoor recreation
area including pool, sauna, whirlpool, exercise room and games.
Management indica tes that wi th the addi t ion of the exh ibi t space,
larger groups are being targeted in their marketing plan including
agricultural trade shows, religious groups and segments of the state
association market which previously had been unable to meet in Great
Bend due to lack of function space.
Great Bend offers a total of 520 hotel rooms.
The CVB
emphasizes location, reasonable hotel rates, excellent hunting and
the facilities and capabilities of the Highland Manor as the primary
.
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PROFILE OF COMPETITIVE KANSAS CITIES
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advantages to meeting in Great Bend.
Marketingstra'tegies include
increased magazine advertising throughout the state, highway bill-
boards advertising the city's hotels and increased sales blitzes to
Topeka to solicit business from association executives.
In terms of competitive cities, the CVB ranks the following:
City
Topeka
Wichita
Overland Park
Hutchinson
Lawrence
Salina
Manhattan
McPherson
Hays
Hutchinson
Comment
Legislative groups usually meet there
Larger market; more regional in nature
Future competition
Holidome
Holidome
Bicentennial Center
Holidome
Western regional market
Expanding Holidome; will be more competitive
Hutchinson is the site for the Kansas Sate Fair and hosts
the National Junior College Athletic Association (NJCAA) national
basketball tournament.
The Cosmosphere and Space Discove ry Center,
located in Hutchinson, is one of the outstanding science centers in
the country and attracts thousands of visitors annually to the area.
The 220-room Holidome is the major convention hotel property
and offers 9,800 square feet of meeting/banquet space with a banquet
capacity for 550 persons.
Management reports that agricultural and
health care groups and state associations comprise the majority of
convention demand for the property.
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PROFILE OF COMPETITIVE KANSAS CITIES
3 VII-6
:.._:~
The CVB reports a total of 775 rooms available in the
market. The Hutchinson Convention Hall, located on the fairgrounds,
is used mostly for agricultural and local events and offers 6,100
square feet of exhibit space. A local committee is studying a pro-
posal to build a convention center which would provide more flexibility
in hosting conventions, trade shows and local events.
No definite
plans or announcements have been made at this time.
The CVB ranks the following cities as primary competition:
City
Comment
Manhattan
Lawrence
Salina
Topeka
Wichita
Holidome
Holidome
Bicentennial Center
Legislature market
Larger market
Lawrence
Lawrence is the home of the University of Kansas and is
closely tied to the expanding greater Kansas City metropolitan area.
A 192-room Holidome opened in early 1982 and enabled
Lawrence to gain a spot on the rotation list of many state associa-
tions. The hotel offers nearly 14,000 square feet of meeting/banquet
space with a banquet capacity for 900 persons.
.
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PROFILE.OF COMPETITIVE KANSAS CITIES
VII...,7
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The CVB reports a total of 615 rooms in the market. The
primary advantages to meeting in Lawrence include the University
resources, alumni associations, the KU museum of art and the extensive
University continuing education programs, as well as Lawrence's close
proximity and access to Kansas City.
The KU Student Union offers approximately 8,000 square
feet of floor space and is used occasionally by convention groups. A
new 97,500-square foot sports stadium is under construction on campus
and will be used by the athletic department for training and sporting
events. KU officials did not indicate that the facility would be
used for conventions or trade shows.
Completion is scheduled for
the fall of 1984.
The CVB reports that the film "The Day After" has given
Lawrence great media exposure, despite the subject matter of the film.
Other marketing strategies include promoting Kansas City attractions
and amenities and developing more tourism in connection with Clinton
Lake, located three miles outside of the Lawrence city limits.
The CVB reports the following cities as primary competition:
City
Comment
Topeka
Manhattan
Hutchinson
Overland Park
Base for most associations
Holidome
Hol idome
Up and coming competitor
"
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PROFILE OF COMPETITIVE KANSAS CITIES
~...,.-:~
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Hays
Hays is the hub of an IB-county region as defined by the
Northwest Kansas Planning and Development Commission. The city owes
its start to the westward migration of the mid-lBOO's and its recent
growth to the oil and gas industry. Ellis County is the largest oil-
producing county in Kansas.
A 16B-room Holidome hotel attracts the majority of conven-
tion demand to Hays.
A 24-room addition and 9,500 square feet of
meeting/banquet/exhibit space is planned for the property during
19B4. In addition, a 116-room Hampton Inn, a new budget motel concept
by Holiday Inns, Inc., is planned for development" adjacent to the
Holidome. The combination of these facility developments will signfi-
cantly improve Hays' position in the state and regional convention
markets as well as the Interstate 70 tourist market.
As a major city along Interstate 70, Hays currently offers
a total of 715 rooms.
The CVB promotes interstate access, Hays'
location midway between Kansas City and Denver, Fort Hays and Fort
Hays State University (FHSU) as major advantages to meet and stay in
Hays.
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PROFILE OF COMPETITIVE KANSAS CITIES
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The Student Union at FHSU accommodates approximately 50
non-university related events per year, mostly regional groups and
trade shows. The Union has a meeting capacity for 1,000 and banquet
capacity for 700.
Gross Coliseum, designed for sporting events and home of
the FHSU basketball team, is also used for concerts (seats 8,000l,
trade shows and other exhibits.
The CVB's marketing strategies include identifying target
convention groups comprising fraternal, civic, social and religious
associations: completing a media slide presentation to show on sales
trips and at industry conventions, and increased sales bli tzes to
Topeka, Wichita and other cities in the state.
The CVB does not consider any eastern Kansas cities as
directly competitive, but lists the following as competition:
City
Comment
Great Bend
Geographically competitive, similar
hotel facility at Highland Manor
Bicentennial Center
Mostly for tourist market
Salina
Dodge City
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PROFILE OF COMPETITIVE KANSAS CITIES
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Dodge City
-...---'
For years, the television program "Gunsmoke" provided Dodge
City with national media exposure and a steady stream of tourists
from throughout the country.
The l22-room Best Wester Silver Spur is the leading conven-
tion property in Dodge Ci ty and offers over 9,000 square feet of
meeting/banquet space with a banquet capacity for 650 persons.
A small civic center comprising 7,700 square feet of exhibit
space attracted 15,000 attendees to mostly local industry, entertain-
ment and agricultural events in 1983.
The CVB reports there are 742 rooms in the market and cites
the historic attractions, agri-business and quality recreation, par-
ticularly golf courses, as competitive strengths.
Marketing strategies include out-of-state advertising and
sales blitzes. The CVB feels that the in-state market is saturated
and that more opportunities for Dodge City can be found outside of
the state.
Continued advertising of the historic nature of Dodge
City is expected to generate interest from regional groups.
-
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PROFILE OF COMPETITIVE KANSAS CITIES
. \111-11
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.
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The CVB ranks the following cities as competition:
City
Comment
Wichita
Topeka
Overland Park
Lawrence
Salina
Great Bend
Garden City
Larger market
Government
Emerging competition
Holidome
Bicentennial center
Added convention center
Smaller groups
Garden City
Garden Ci ty is pr imari ly an agriculturally-oriented ci ty
in central Kansas.
The primary convention hotel is the 109-room Hilton. The
property offers 6,400 square feet of meeting/banquet space with a
banquet capacity for 250 persons.
The CVB reports a total of 617 rooms in the market and
promotes the area as a midway stop between Oklahoma City and Denver.
In 1976 the 30,000-square foot Finney County Exhibition
Hall opened to accommodate the Irrigation Implement and Industry
(31) show which attracts over 25,000 farmers and other visitors to
the area bi-annually.
The show alternates between Garden City and
Great Bend and generates hotel demand for the entire region. The
Exhibition Building is used for trade shows and local events, but is
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PROFILE OF COMPETITIVE KANSAS CITIES
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not well-equipped for conventions or concert:s' 'due' to concrete floor
construction and the lack of air conditioning.
The CVB lists the following cities as competition:
City
Dodge Ci ty
wichita
Topeka
Great Bend
Salina
Comment
Historic attractions
Larger market - must tap into
Legislature
Highland Manor
Bicentennial Center
wichita
Wichita is the largest city in Kansas and has historically
dominated the state convention market. There are four primary hotel
propert ies wh ich attract the majori ty of convent ion demand to the
area including the 285-room. Broadview Hotel, the 283-room Holiday
Inn Plaza, the 231-room Hilton Inn-East and the 171-room Hilton
Airport Inn. Each one of these properties comprises substantial meet-
ing/banquet facilities and the Broadview and Holiday Inn are located
across from the Century II Convention Center in the downtown area.
Century II, located on West Douglas and Waco Avenues in
downtown Wichita, opened in 1969 and accommodates civic, cultural
and convention activities.
It is a two-level domed facility and
provides a 35,000-square foot convention hall, a 62,000-square foot
exhibit hall, twelve meeting rooms totaling 7,400 square feet, a
2,200-seat concert hall and a 661-seat theatre.
~
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PROFILE OF COMPETITIVE KANSAS CITIES
"IIo-13
;_,~..-0
,_..'
Plans to expand Century II to include' a convention hall of
100,000 square feet with 20,000 additional square feet of meeting
and ancillary space is scheduled to break ground in early spri ng,
1984. The expansion will be located directly south of the existing
structure and connect to Century II via a skywalk. Additional plans
include an extensive skywalk system, connecting Century II to hotels
and office buildings.
According to City officials, the expansion
of Century II will be funded entirely by the transient guest tax,
which was increased from two percent to five percent in the Fall, 1982.
Convention activity is reported by the Wichita Convention
and Visitors Bureau (CVB).
The Bureau is a quasi-public agency,
funded principally by the rooms tax collected by the City of Wichita.
The Bureau was separated from the Chamber of Commerce in 1980. His-
torical data, indicating recent trends in convention activity, are
presented in the following table:
WICHITA CONVENTION
Number of
conventions
ACTIVITY
Estimated
attendance
Year
1975
1976
1977
1978
1979
1980
1981
1982
1983
217
229
272
305
373
249
194
199
197
112,018
115,279
142,904
153,892
123,623*
122,600
94,331
112,222
146,175
* Attendance does not include local
events subsequent to 1978.
Source: wichita Convention and Visitors Bureau.
D. "..,:.l~" ~
-
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PROFILE OF COMPETITIVE KANSAS CITIES
. ,-"'~T'
VII -1,4;-';-
-" ,~'-'
.:..:,;....1
The availability of Century II for large convention groups
has been reduced by trade shows, local exhibits and sporting events
utilizing Century II approximately 60 percent of the year. The expan-
sion of Century II is expected to resolve such scheduling conflicts
and allow for increased convention activity.
Additionally, the
Century II sales staff will not be allowed to book the facility for
local events in the expanded portion of the facility more than four-
teen months in advance. The Convention and Visitors Bureau will have
priority to book and guarantee conventions several years in advance.
The Kansas Coliseum, a multi-purpose event facility includ-
ing a l5,500-square foot arena with a seating capacity of 12,200,
is also located in Wichita and competes more directly with the
Bicentennial Center in the trade show and concert markets. The
Kansas Coliseum is also home for the Wichita Wings of the Major
Indoor Soccer League (MISL).
A comparision of total events, usage
and attendance at the Kansas Coliseum and the Bicentennial Center
indicate the relative competitiveness, markets penetrated and mix of
events at the two facilities.
',f./''':;1
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PROFILE OF COMPETITIVE KANSAS CITIES
vq:::t'S
.~
1.:5:))
1980
YEARS.. .
1981 1982
1983
Kansas Coliseum
Total events 102 123 126 114
Use days 156 208 227 198
Attendance 486,935 613,609 676,889 752,944
Bicentennial Center
Total events 214 211 159 166
Use days 198 200 186 187
Attendance 267,814 227,670 261,405 298,036
Source: Kansas Coliseum: Bicentennial Center.
Management at the Kansas Coliseum report that Class A Horse
Shows and concerts have been identified as the most profitable events
and will be increased in the future.
Wichita's hotel inventory comprises approximately 5,100
rooms and attracts all market segments.
The last major hotel to
open in Wichita was the Hilton Inn-Airport in 1981.
A proposed
expansion of 130 rooms and 6,000 square feet of additional meeting
space is planned at this property.
In addition, a number of hotel
projects have been proposed in Wichita, including a 300-room conven-
tion hotel which would connect to the expanded convention center.
"
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PROFILE OF COMPETITIVE KANSAS CITIES
.viirl6
-.3
.._., .1.'---::11
The CVB considers the following citiEl_s___as:"competition:
City
Comment
Topeka
Overland Park
Kansas City, Kansas
Manhattan
Hutchinson
Salina
Lawrence
Great Bend
Government
Emerging
Part of Kasnas City area
Holidome
Holidome
Bicentennial Center
Holidome
Highland Manor
In the regional market, Wichita competes with Omaha, Lincoln,
Kansas City, Tulsa, Springfield, St. Louis and Denver. The planned
expansion of convention and hotel facilities would place Wichita in
a stronger position to compete for more regional and national groups.
Topeka
Topeka, the state capital, has traditionally been the site
of many state conventions due to its legislative base and concentration
of association executives with offices there.
The two major properties accommodating convention business
are the 430-room Ramada Inn-Downtown and the 200-room Holidome-West.
The Ramada offers approximately 34,000 square feet of meeting/banquet
space and is currently the largest hotel in Kansas.
- '. ~
.
PROFILE OF COMPETITIVE KANSAS CITIES
VII -.17
..
The Shawnee County Exposition Center (Expo Center) is
. .
currently under construction on the County Fairgrounds site and will
comprise the following:
o A Community Center area - the remodeling of existing
structures to inc lude a 20, OOO-square foot exhibi tion
hall, a 7,300-square foot meeting room, a 16,000-square
foot exhibit hall and eight meeting rooms. The facilities
will be used for local activities and as auxiliary break-
out and meeting space for the convention center.
o A Convention Center including a 45,000-square foot exhibi-
tion center and a 24,000-square foot multi-purpose arena
with a seating capacity of 9,500 for concerts.
o A 90,000-square foot agricultural center.
o Ten acres of commercial property available to developers
for hotel, restaurant, retail and other development.
Topeka is growing, wi th a number of major commercial develop-
ments underway, and we anticipate continued hotel development in
conjunction with the Expo Center. Currently, there are approximately
2,000 rooms available in the market.
The CVB promotes Topeka's
central location and government resources to convention groups.
Kansas City, Kansas
The city of Kansas City, Kansas is located west of Kansas
City, Missouri, situated at the confluence of the Missouri and Kansas
Rivers. The economy is diversified and includes the University of
Kansas Medical Center as well as the General Motors assembly plant
located in the Fairfax industrial district.
,
.. ,'"
PROFILE OF COMPETITIVE KANSAS CITIES
VII-is
..-;
The 20S-room Holiday Inn Towers:. is the. primary convent ion
:.:.;--' --.
hotel offering a 3,300-square foot ballroom with banquet capacity for
400 persons.
In 19S1, the Constitution Convention Center opened providing
a total of 20,000 square feet of function space. The Center is used
primarily for local events, banquet functions and trade shows. A pro-
posed 300-room convention hotel is planned for development adjacent
to the center.
An Urban Development Action Grant (UDAG) is being
considered in the financing plans for the project.
The CVB reports a total of 705 rooms in the market and
promotes the Kansas City metropolitan area's attractions in marketing
for groups and tourism.
As a close neighbor to downtown Kansas City, Missouri,
Kansas City, Kansas benefits from major convention activity at Bartle
Hall. However, the number of facilities available for concerts, trade
shows and exhibits in the metropolitan area limit the Constitution
Center's usage to mostly civic events.
Overland Park
Overland Park is a suburb of Kansas City located in rapidly
growing Johnson County, Kansas.
."...-
~
. ',",
"
"
d
PROFILE OF COMPETITIVE KANSAS CITIES
VII-19
Once a bedroom community, Overland Park has experienced
significant office, hotel, retail and residential development during
the last six years.
The core of expans ion is College Boulevard,
currently comprising over four million square feet of office space
and the site for a number of hotels which are currently under construc-
tion, due to open during 1984 and expected to attract more state and
regional conventions to the area. These properties include:
...a 404-room Marriott Hotel with 20,000 square feet of
meeting/banquet space;
...a 200-room Embassy Suite hotel comprising all suites
and limited conference facilities; and
...a 225-room Granada Royale Hometel, another all-suite
property with meeting/banquet space.
The 357-room Doubletree Hotel opened in March, 1982 with
12,500 square feet of meeting/banquet space and banquet capacity for
900 in the ballroom.
The 250-room Regency Park Hotel, formerly the Glenwood
Manor, was at one time one of the leading convention properties in
the state and still attracts a large convention business. The
property comprises a 21, 600-square foot exhibit hall, and most of
the property was recently refurbished.
In 1983 there were 1,571 available rooms in Overland Park,
and by 1985 the supply is projected to nearly double.
..
..~~..:
.'
'.:~..n
PROFILE OF COMPETITIVE KANSAS CITIES
VI 1):"'''2 0
"_0
.,J
Plans for a convention center have been announced to comple-
ment the expanding hotel supply. The Amigo Trade Association, cur-
rently located in Kansas Ci ty, Missouri, has expressed interest in
moving to a 312,000-square foot trade mart to be developed in Johnson
County, across the street from the Regency Park Hotel.
The trade
mart would include a 60,000-square foot convention and exhibition
hall for use by the Overland Park Convention and Visitors Bureau.
It is not certain if the Amigo Trade Association, which attracts
20,000 buyers and visitors annually to their shows, will be moving,
but a convention facility appears to be very possible in Overland
Park.
The CVB was recently formed in 1982 and operates with a
one percent lodging tax. Approximately 30 percent of the first year
budget was spent on publications and brochures which included a sepa-
rate motor coach tour facility guide complete with rates.
Future
marke t ing s trateg ies stress increased sales bli tzes throughou t the
region.
'.- '.~ :~
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,
PROFILE OF COMPETITIVE KANSAS CITIES
VII-21"
.--;)
SUMMARY
The tables following this page summarize the hotel and
convention facilities available throughout the state of Kansas.
The wide differences and lack of standardized reporting of convention
attendance and convention center activities is evident in the data.
The tables present a profile of facilities and should not be inter-
preted in conjunction with estimated hotel demand from conventions
presented in section VIII.
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SALINA'S SHARE OF THE STATE CONVENTION MARKET
Salina is one of the major population centers in the State
of Kansas and is centrally located.
Given these characteristics,
Salina is a meeting site for state associations, industry, business,
fraternal, social and religious organizations, as well as a site for
trade shows, concerts and other events.
Similar to our economic impact model, hotel room demand is
the primary measure of convention market share for a city. Specifi-
cally, the headquarter hotel(s) in a market, which offer meeting and
banquet facilities and are competitively positioned within the state
convention market, comprise the supply available to accommodate conven-
tion demand.
Given the previous discussion of competitive cities,
their meeting facilities and marketing strengths and weaknesses,
demand tends to gravitate to those markets best suited to accommodate
particular conventions.
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SALINA'S SHARE OF THE STATE CONVENTION MARKET
VI II"" 2
J
Until recently, the Hilton Inn was ~~ilna's headquarter con-
vention hotel and, historically, attracted approximately 25 to 35
major conventions annually.
Despite the opening of the Bicentennial
Center in 1979, the Hilton Inn was unable to continue profitable
operations and maintain convention market share due to aging facilities
and new competition throughout the state, particularly from "Holidome"
convention hotels developed in Manhattan, Hutchinson and Lawrence.
PRIMARY COMPETITIVE CONVENTION MARKET
We have identified a primary market of Kansas cities, repre-
sented by their headquarter hotel(s), which Salina competes with on a
direct basis.
Although most Salina motel operators indicated that
Topeka, Wichita and Kansas City were primary competitors, the size
of those markets and their hotel facilities are significantly greater
and of higher quality than Salina's and, therefore, these cities
must be considered as secondary competitors.
The primary market consists of eight cities and eight head-
quarter hotels, including Salina and the Hilton Inn. As the facing
table indicates, Salina's share of the market declined from 14.0
percent in 1982 to 8.1 percent in 1983. The declining occupancy of
the Hilton Inn contributed greatly to the loss in Salina's market
share in 1983.
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SALINA'S SHARE OF THE STATE CONVENTION MARKET
~..>...~ I'.i.j ..tJ:1'i'
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The Lawrence "Holidome", open less"."tlfaft' two years, is
expected to increase its market share substantially over the next
three years.
The Highland Manor in Great Bend dominates that ci ty I s
hotel market and recently expanded its meeting and convention facili-
ties, which now totals 23,400 square feet.
Expansion plans for the
Holidome in Hays and continued growth of the Manhattan market will
increase competition for groups, further impacting Salina's position.
SECONDARY MARKET
"
The secondary market comprises the major cities in Kansas
including Wichita, Topeka, Kansas City and Overland Park.
Salina's
share of this market was 7.8 percent in 1982 and 4.3 percent in 1983
as the facing table indicates.
These cities are aggressively pursuing both the state
convention market as well as regional and national markets.
Hotel development in Wichita during the past few years has
been mostly in the budget end.
Several hotel projects' have been
proposed including expansions to the Broadview and Hilton Inn-Airport,
and a major downtown convention hotel, which would be connected to
the expanded Century II Convention Center.
-- .
.'
SALINA'S SHARE OF THE STATE CONVENTION MARKET
. , 7~1~rr
VIH,,:,.!l1
IS
.. --.,
f:.;D
In Topeka, the Shawnee County EXPQCente!::_.CEJiP~) is under
.\:\J!..:. ....-......
construction with the total project scheduled for completion in
early 1986.
Recently, commercial development throughout the capital
city has been strong, and we anticipate continued lodging development
which will strengthen Topeka's market position in the state and region.
In Kansas City, Kansas, a 300-room hotel is proposed for
development adjacent to the Constitution Convention Center. No
definite announcement has been made at this date.
Overland Park has been the site of the most rapid expansion
in commercial and lodging development in the state and wi thin the
region over the past three years. Most Convention and Visitor Bureaus
and other industry profess ionals surveyed, ident if ied Overland Park
as the primary competitor in the near future.
SUMMARY
Salina's share of the state convention market has declined
due to the decline of the Hilton Inn and increased competition through-
out the state. The primary competitive cities are expanding, whereas
Salina has lost hotel facilities and lacks a comprehensive marketing
plan to attract groups best suited to meet in Salina.
: .'~ ';
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SALINA'S SHARE OF THE STATE CONVENTION MARKET
"'r
VIU"':'S
.
,3,)
.:-.,
As other
markets
expand and diversi--ty;,' the
'.-'.,..; ~.
Kansas
state
market will further stratify and associations will choose sites based
on geographical locations and the quality level of cities which
complement their particular status.
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SURVEY OF KANSAS ASSOCIATION EXECUTIVES
We surveyed 91 Kansas association executives, representing
a cross-section of a total list of approximately 350 associations
from the Directory of Kansas Associations, by mail to determine which
cities host major state association conventions: the average size
and duration of conventions: the hotel room, exhibit space and seating
requirements: and the relative importance of site selection criteria.
Approximately 36 percent responded to the survey. The
following table indicates the type of organizations which responded.
Cateqory
Percent
Professional
Educational
Trade associations
Agricultural
Fraternal/social
Government
Engineering/scientific
Social service
32%
22
16
8
8
8
3
3
100%
- .~-,
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SURVEY OF KANSAS ASSOCIATION EXECUTIVES
,'-
:tX-2
ie_c)
Most meeting/convention sites
\_ .. J_;..
ar~'chose~ by an
executive
committee or the association president. On the average, associations
schedule 1.6 meetings annually. The table below lists, in order, the
top cities and hotels which were selected during the past five years.
City
Hotel
Wichita
Holiday Inn-Plaza
Holiday Inn-East
Broadview
Holidome
Ramada Inn
Hyatt Regency
Radisson Muehlebach
Holidome
Holidome
Holiday Inn
Regency Park
Topeka
Kansas City, Missouri
Hutchinson
Manhattan
Overland Park
Sixty-three percent
of the respondents indicate that
attendance at conventions is less than 500 persons as shown in the
following table:
Average
attendance Percent
Less than 100 10%
100 - 249 23
250 - 499 30
500 - 749 8
750 - 999 4
1,000 and over 25
100%
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"
SURVEY OF KANSAS ASSOCIATION EXECUTIVES
ix;:'3T
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. ----,.
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Approximately 56 percent of the r~~po,ndents.. ind.icate that
1.,"....- ,..--'
the average length of a convention is two to four days, and 38 percent
indicated a duration of one to two days.
Hotel room requirements for conventions are as follows:
Number
of hotel
rooms required
Percent
Less than 100
100 - 199
200 - 299
300 - 499
500 and over
23%
37
20
10
10
100%
Approximately 44 percent of the respondents do not require
exhibit space.
The exhibit space requirements of the remaining 56
percent are detailed in the following table:
Square feet of exhibit
space required
Percent
Less than 10,000
10,000 to 12,000
12,000 to 16,000
16,000 to 25,000
25,000 and over
47%
27
o
13
13
100%
.'
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SURVEY OF KANSAS ASSOCIATION EXECUTIVES
I X,. 4'
!-....
-.,)
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General session and banquet seatt99.:;.,;r;:J~q.uireme'r'lts are as
follows:
Number of seats
Percent
General
session Banquet
None
Less than 100
100 - 299
250 - 499
500 - 749
750 and over
0%
10
37
37
3
13
7%
7
39
29
7
11
100%
100%
The survey indicates that the most frequent seating require-
ments for state associations are less than 500 seats.for both general
sessions and banquets, enabling most groups to meet in a hotel.
Approximately 70 percent of the respondents anticipate an
.
average growth of five to ten percent in their convention attendance
over the next five years.
The most common reason cited for this
growth was an increase in membership.
-"'~1''i'
SURVEY OF KANSAS ASSOCIATION EXECUTIVES
"
c
IX";'-S
Listed below, in order of greate:~tto least importance,
are site selection criteria identified in the survey.
Rank of site selection criteria
1. Quality of rooms
2. Number of meeting rooms at convention center
3. Delegate costs (rates)
4. Size of headquarter hotel
5. Quality of restaurants/entertainment
6. Access and transportation to city
7. Image of city
8. Exhibit space at convention center
9. Membership density in area
10. Effort of city/convention bureau to sell site
11. Affiliation of headquarter hotel
Approximately 15 percent of the respondents have met in
Salina in the past.
Respondents indicated that parking, rental,
condition and management of the Bicentennial Center were good to
excellent. Transportation, hotels and other entertainment in Salina
were frequently cited as poor.
Respondents that have not met in Salina or do not intend
to meet there in the future, cite the city's general lack of image
and appeal and poor hotel support as the primary reasons.
The following cities and hotels were most frequently identi-
fied as future convention locations.
. .-. "', ~
....
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SURVEY OF KANSAS ASSOCIATION EXECUTIVES
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City
Hotel
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Wichita
Broadview
Holiday Inn-Plaza
Hyatt Regency
Ramada Inn
Holidome
Doubletree
Kansas City, Missouri
Topeka
Hutchinson
Overland Park
SUMMARY
The majority of groups meet in hotels which are sui tably
equipped and provide sufficient meeting and banquet space. Although
quality of hotels was cited as the primary selection criteria, a
city's image, restaurants, entertainment and transportation is viewed
as very important by association executives and meeting planners.
....' OF
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RECOMMENDATIONS
This section of the report addresses specific recommendations
with respect to improving Salina's competitive position in the conven-
tion and tourist markets. Our recommendations are not limited to the
Convention and Visitors Bureau. The dynamic nature of the convention
and tourism industry affects many segments of the economy including:
o hotels and motels
o restaurants
o the Bicentennial Center
o transportation systems
o government (city, county and state)
o retail
o industry
o education
o residents of Salina
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RECOMMENDATIONS
,.- -,
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")
STATUS QUO SITUTATION
A logical place to begin would be to consider what Salina's
future position would be if no further efforts or changes are imple-
mented.
'During 1984, two hotels in Salina have closed, the Hilton
Inn and Salina Inn, and the city is in jeopardy of losing several major
conventions booked over the next two years.
Future bookings at the Bicentennial Center are primarily
repeat events and, therefore, represent a status quo situation at
that facility.
The expansion of hotel and meeting facilities in Hays,
Great Bend, Topeka and Overland Park will impact Salina. Without a
competitive convention hotel and a defined marketing plan, we project
that Salina's share within the previously defined primary market would
decline to five percent and to two percent in the secondary market.
In the tourist market, Salina will continue to attract
overnight travelers enroute to their destinations on Interstate 70,
but will not be in any better position to attract additional demand
as the tourist market grows.
T'""-: ,."'::1,. ~ .'':::, C.r?
!.' .....;'
., 1.~,~~.
-.-.7'-'
RECOMMENDATIONS
X-3 ~;>
A proposed IIO-room hotel with meet!ng ~acilities~ planned
for development across from the Red Coach Inn at Interstate 135 and
Crawford Street would not materially change Salina's competitive
position in the convention market.
Our project ions of total market
demand and the anticipated new convention demand derived by the
property would not represent any real growth over 1983 demand levels.
While a new hotel would offer larger meeting space and new rooms, it
only serves to replace the Hilton Inn and, at best, maintain a status
quo position for Salina in the convention market.
The Bicentennial Center will continue to host events but
will not generate significant hotel demand to make up for lost business
from the Hilton. Additionally, the Center will continue to require
revenues from the city to meet operating expenses.
OBJECTIVES
Our recommendations are designed. to achieve the following
major objectives:
...improve Salina's visibility and the market's awareness
of Salina and its facilities throughout the state and
region;
.. .promote growth in the market both in demand for and
supply of facilities;
.. .coordinate marketing efforts of the Convention and
Visitors Bureau, the hotel community and the Bicentennial
Center;
",'
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,X-4
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RECOMMENDATIONS
... identify viable short-term and' long-term markets avail-
able to Salina; and
.. .prioritize efforts to
benefits which could
recommendations.
maximize
result
the
from
potential economic
implementation of
HOTEL MARKET
Current Situation
Our analysis indicates that the existing lodging supply,
while high in number of available rooms, is not very competitive
with other markets in terms of facilities, quality level and overall
appeal to the convention market.
Hotel operators, in general, do not recognize the Center
as a major factor in their market segmentation. Consequently, there
is a lack of support for the Center.
The lodging supply is acutely segmented both in terms of
location and market orientation and, therefore, coordinated marketing
programs to increase city-wide convention business have been difficult
to implement.
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X-50
RECOMMENDATIONS
follows:
..-"
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Recommendations
..,....,
:':',j,;,---
Our recommendations regarding the hotel market are as
1. Hotel operators and owners should continue to upgrade,
renovate and improve existing hotel facilities to main-
tain their market share and present a more competitive
supply to convention and meeting planners.
2. Hotel operators need to coordinate better with each
other in convention planning and marketing. In parti-
cular, two nodes of hotel development at the two inter-
state interchanges could be better promoted to conven-
tion groups if management coordinated their efforts.
3. In order to accomplish recommendation number two, hotel
operators should participate in a familiarization tour
of other properties in order to assess the total capa-
bilities and competitive qualities of the supply in
Salina. Due to the size of individual hotel properties,
larger convention groups would generally require use
of two or three properties.
4. All hotels should report group and tour statistics to
the CVB in order to measure progress and success in CVB
marketing efforts.
5. Hotels should offer special package plans in conjunction
with Bicentennial Center events in order to stimulate
demand from visitors and attendees of events.
6. Upgrade or replace existing highway billboards. Many
of the billboards are old and project to tourists that
hotels are aged as well.
7. A major marketing effort should be made in the Tour
Bus market to develop tourist business both in the
summer and winter seasons.
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BICENTENNIAL CENTER
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Current Situtation
The Bicentennial Center is a great attribute, but the
Center has not produced signif icant demand for area hotels. The
Center is not strategically located to complement the hotel supply
and lacks recognition in the market, both on a state-wide basis and
regionally.
Recommendations
The following are recommendations to consider with respect
to the marketing and operation of the Bicentennial Center.
1. Establish a booking policy precluding most local events
from being booked more than six months ahead of the
actual date to free up space for concerts, conventions
and trade shows.
2.
Reevaluate rental rates for full scale usage of
Center giving appropriate discounts depending upon
number of hotel rooms and meal functions booked.
the
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3. Increase advertising of the Center in regional publica-
tions which meeting planners, concert promoters and
other potential users refer to when looking for faci-
lities and markets.
4.
Target marketing efforts
and entertainment events,
equipped to handle.
to a t tract more trade
which the Center is
shows
best
5. Explore alternative uses of the arena for sporting
events during the week, particularly state tournaments
for high schools and colleges.
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6. Expand concession and rest roonL..fac(l:ities.to. increase
food and beverage sales at all ~vents. The Center has
a captive audience and should promote concession sales.
7. Evaluate local demand for teleconferencing facilities
at the Center.
8. Establish a committee to organize and implement themed
trade shows in conjunction with another major city.
Themes such as transportation, energy and education
should be considered rather than agriculture which is
promoted in most of the other markets. The "created"
trade shows would alternate between the two cities.
CONVENTION AND VISITORS BUREAU (CVE)
Current Situation
The CVB has not operated with clearly def ined marketing
objectives which are compatible with the facilities and services
offered in Salina. The director's position should be one of promoter
and organizer. This entails outside sales and pUblic relations. In
order to effectively market Salina, the CVB must become more aware
of the capabilities of Salina and take a leading role in coordinating
efforts of the hotels and the Bicentennial Center.
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Recommendations
We recommend the following:
1. The CVB Director should conduct a familiarization tour
of all hotels, restaurants and the Bicentennial Center
to assess the capabilities and qualities of all faci-
lities in the market.
2. Improve the hotel facilities guide. The brochure
should emphasize pictorial presentations, meeting faci-
lities, amenities and Salina's locational advantages.
Package plans and details concerning conventions and
motor coach tours should be included in the guide.
3. Design new highway billboards that promote the total
Salina lodging market emphasizing over 1,100 available
rooms and Salina's location at two major interstates.
Billboards should be colorful, brief in wording and
strategically located on the interstate highways at
points up to three hours outside of the market.
4. Work with the city on CBD redevelopment plans to im-
prove the amenities and facilities available to visitors
and attendees at Bicentennial Center events.
5. Attend all meetings/dinners of Kansas Association
Executives to establish contacts and promote the city.
6. Increase the travel budge t for sales bli tzes to all
cities in Kansas to call on meeting planners, associa-
tions and organizations.
7. Attend conventions, trade shows and other events in
competitive markets to make contacts with meeting, con-
vent ion and trade show planners, and to evalua te the
services provided by competitors.
8. Conduct an extensive direct mail campaign to Tour Bus
operators throughout the country.
9. Arrange familiarization tours for meeting planners,
travel agents and tour bus operators to visit Salina
and see the hotels and Bicentennial Center. Appropriate
expenses should be paid by the CVB.
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Evaluate the comfort level of sh~;;tH~- b~~~-;~'sed during
city-wide conventions. Since this will usually be
necessary for certain events at the Center, the system
should be of high quality and offer convention delegates
convenient transportation to and from the Center.
Continue to subsidize rentals at the Center for conven-
tion groups.
Institute an additional one percent lodging tax to
generate the funds needed to subsidize groups. In past
years, the CVB budget was reduced by this amount, thereby
limiting available funds for travel, advertising and
other marketing functions.
Develop a video taped presentation on Salina to show to
prospective clients. The video should key on meeting
facilities, the Bicentennial Center, hotels, restaurants
and retail shopping available. Action shots of banquets
and activities at the Center and hotels should be
,included.
CONVENTION AND TOURISM
The following recommendations relate to improving overall
convention and tourism demand in Salina and involve the hotel market,
government, private industry, the CVB, the Bicentennial Center and
residents of Salina.
1. Assist and attract a private developer to build a con-
vention hotel in Salina which would be competitive with
other major convention hotels throughout the state.
Salina will not be able to capture its fair share of
state associations and other convention groups unless
there is a major competitive hotel facility available.
If such a hotel were developed in Salina, we believe
that the additional demand attracted to the area would
far outweigh the initial impact on existing properties.
Additionally, the combination of the Bicentennial Center
and a competitive convention hotel would stimulate
increased demand at both facilities and thereby increase
demand for the entire market. However, the hotel does
not have to be located adjacent to the Center to be
effective.
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2. In the short term, the primary- groups Sali:na should
concentrate on attracting include':"' ' .
Western and centrally located state associations
Religious groups of all types
. Fraternal associations
Trade shows and exhibits
Industry/business groups
. Civic associations
3. Long-term markets would include the following, assuming
the development of a convention hotel:
. Regional organizations (Oklahoma, Nebraska, Colorado,
and Kansas markets)
Regional trade shows
Kansas state associations not prese.ntly considering
Salina
. Business, government and industry groups
4. Assist/attract development of a major tourist attraction
such as a mini-water theme amusement park, discount
outlet mall, or other entertainment/leisure time de-
velopment.
This type of development would provide Salina with the
following benefits:
Attract more tourists 'to the area
Stimulate hotel development
Expand the trade area on a year round basis
Provide jobs
Improve the image of the city
Generate tax revenues for the city, county and state
Stimulate restaurant sales
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5. Assist/attract new restaurant development in the area,
particularly downtown, to provide convention delegates
with alternative dining choices.
6. Promote area-wide events and tourist attractions out-
side of the market to attract more out-of-town visitors
to Salina.
7. Conduct a contest to rename the city's slogan. The
slogan should lend itself to use in advertising and
promotion of the city's convention and tourism industry
and be ten words or less for use on highway billboards.
8. Further relations with local residents who are members
of state associations, and have them sell Salina as a
site for their conventions and meetings.
9. Develop further contacts with local industry and educa-
tional institutions to stimulate group business from
this sector.
10. Investigate renovating and using county buildings in
Kenwood Park in conjunction with the Bicentennial Center
to attract larger groups and trade shows.
PROJECTED ECONOMIC IMPACT OF RECOMMENDATIONS
Introduction
We have analyzed the potential economic impact of several
of the recommendations detailed in this section.
Clearly, not all
recommendations involve tangible and measurable changes.
Marketing
and promotion tends to increase the target market's awareness of a
product or service and creates or builds interest.
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New Convention Hotel - Convention .Impact
Based on our market analysis, we estimate that a new nation-
ally affiliated hotel of 150 to 200 rooms with meeting/banquet space
for 600 persons and indoor recreational facilities could attract
approximately 20,000 additional room-nights of convention demand to
the market.
While the majority of demand would be accommodated at
the new hotel, we estimate that approximately one-third of the room-
nights would be accommodated by other properties in the market. The
resulting incremental economic impact on the convention market would
be approximately $5.3 million, based on higher delegate expenditures
at a new hotel and average expenditures at other properties.
Bicentennial Center - Additional Conventions/Trade Shows
Through improved marketing and booking policies, we feel
reasonable objectives for the Bicentennial Center would be to attract
five additional conventions and six additional trade shows annually.
Based on 1983 average attendance per event and our estimates of
associated hotel demand and attendee spending, we project the economic
impact would be approximately $2.9 million, net of any direct revenues
which would accrue to the Center through rentals and other sales.
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Tourism - Additional Demand
The recommended convention hotel would also have a signifi-
cant impact on the tourist market.
Based on comparable properties
and our analysis of the lodging market, we estimate that an additional
12,000 room-nights of tourist demand could be attracted to Salina by
the hotel.
Based on estimated expenditures per visitor, we project
the economic impact would be approximately $855,000 dollars.
By increased marketing to tour bus operators and other
segments of the tourist market, we estimate that the current lodging
market could attract an additional 7,400 room-nights of demand. Based
on a double occupancy factor of two guests per room, this represents
approximately 15,000 additional visitors to the area. The projected
economic impact of this demand would be approximately $1.1 million.
Summary
The total economic impact from addi tional convent ion and
tourist business, as a result of specific developments in the market,
is presented in the following table.
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Source - market
ntima:ted' ecohbmic
impact in constant
1983 dollars (millions)
Convention hotel - conventions
$5.3
Bicentennial Center - conventions
2.9
Convention hotel - tourism
.9
Lodging market - tourism
1.1
$10.2
OTHER IMPACT CONSIDERATIONS
The following describes the potential impact on the market
from other recommendations, although not in terms of direct economic
impact.
Bicentennial Center
By increasing concession and restroom facilities at the
Center, gross concession sales could be increased by approximately
50 percent.
Given 1983 food and beverage sales at entertainment/
sporting events of $108,000, this could mean additional sales of
approximately $54,000.
By increasing the events at the Center,
concession sales could increase substantially, making the cost of
facility improvements more feasible.
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four additional concert events per year.
Given the concession and
restroom facility improvements, concert attendance and concession
sales should improve.
LOdginq Tax Receipts
Based on 1983 lodging tax receipts, an additional one percent
tax would generate $58,800 in additional tax revenues. These funds
would be used to subsidize new conventions booked at the Center and
increase the general CVB budget for travel and advertising.
Given the development of a new convention hotel and our
estimates of reasonable market occupancy and average rates, lodging
tax receipts, at three percent, could approximate $266,000 (constant
1983 dollars) by 1986.
At the current two percent lodging tax,
receipts would be approximately $178,000.
While most cities in Kansas have adopted a two percent
lodging tax to fund their CVB, Salina has a greater need for promo-
tion and funding due to the number of available rooms in the market
and the operating expenses of the Bicentennial Center.
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Major Tourist Attractions
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Salina lacks an attraction which the tourist market, par-
ticularly tour bus operators, look for in their stopping points.
The development of a water theme park, for example, would
not only attract tourists but also residents from within the trade
area.
A factory outlet mall, a rapidly expanding segment of the
retail industry, would offer a year-round attraction and fill a
niche in the retail market.
Our experience in lodging markets throughout the country
indicate that these types of developments serve the trade area and
attract thousands of visitors annually. Significant economic benefits
in the way of tax revenues, jobs and other development would accrue
to Salina, the County and the State with the development of a major
tourist attraction.
SUMMARY
In the near term, Salina must assess its facilities, ser-
vices and position and proceed with defined marketing objectives to
increase demand from conventions and tourism.
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Intermediate and long-range goals are d~;p~~dent upon certain
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facility developments, which we feel are necessary to achieve a greater
share of the market.