Destination Audit of Neighborhood near New York - Report Example

Destination Audit

Introduction

Overview of the product/ Neighborhood near New York

Manhattan is often considered the strongest with regard to tourism potential in New York. However, the other boroughs of New York, which are namely, Brooklyn, Bronx, Queens, and Staten Island, are also good for both private and public tourism investment. Tourism in New York City and its neighborhood is characterized by a dual market whereby Manhattan represents one of the markets that is more of an upper income oriented. The second market encompasses Bronx, Queens, Brooklyn, Upper Manhattan and Staten Island whose characteristics include having efforts of promoting the regions to ethnic and domestic interests. Last year, 2015, the city and its neighborhood received about 59.7 million tourists. The number of tourists visiting the region is expected to rise to about 59.7 million in 2016. The high number of tourist visiting the region can be attributed to the former mayor of New York, Michael Bloomberg, who started the efforts of attracting more visitors to the region. New York and its neighborhood, which comprises of the five boroughs, are characterized of diverse cultures, entertainment among others which increases its potential in tourism. Both domestic and international tourists visit the region. In the year 2015, forty-six million domestic tourists visited the city whereas international tourists were 12.7 million.

Trend affecting the potential of tourism development in the New York and its neighborhood

The trend of restaurants in New York and its neighborhood has had a positive effect on the tourism development in the region. Apparently, the region has over seventy-two thousand hotel rooms and about nineteen thousand restaurants. By 2008, the hotel occupancy in the region was more than eighty-six percent whereas the rates for the rooms were at an average three hundred and four US dollars. This trend is important since the city can accommodate many tourists and hence promoting tourism potential in the region. The increase in the number of restaurants in the region has been in spite of the risen rents, for instance, in Manhattan where the rent for a restaurant can be more than fifteen thousand per month. The trend has been because of more chefs wanting to be independent and thus establishing their restaurants and other forms of eateries. In Brooklyn, it is estimated that the number of eateries was increased by ten percent in a period of five years between the years 2009 and 2014 whereas there was a six percent increase in Manhattan. Clearly, the trend is having a positive effect on the tourism potential of the city.

Responsibility of tourism in New York and its neighborhood

The Strengths and Weaknesses of NYC and Company

Strengths

NYC and Company is responsible for the expansion of tourism potential in New York. It has had numerous strengths, which have led to the increased tourism development in New York and its neighborhood. First, NYC and Company has a five-borough promotional strategy, which promotes tourism in the five boroughs as well as an international expansion plan, which ensures increased tourism potential in the entire region. Secondly, the members of the NYC and Company increase its potential for tourism development in the region. Some of the members of NYC and company include restaurants, nightclubs, accommodation facilities, entertainment facilities among other members. These members have a positive effect on tourism. For example, many tourists will want to be in a place in which they have the access to eateries, accommodation facilities among others that will make their visit enjoyable. Thirdly, the tourism industry in the region remains stable in spite of economic crisis and hence is strength for the NYC and company. Fourth, the tourism has had a fast growth. The tourism is among the three industries in the region, which have seen a double-digit percentage rise between the years 2006 and 2012. The growth in the industry is also exhibited in the ability of industry to offer a substantial amount of jobs as compared to other industries in the region. Fifth, the fact that New York is the leading global travel destination in the entire country is strength for NYC and Company. Sixth, New York is rich in arts and culture, which attracts many tourists to the region.

Weakness

Tourism in New York is characterized by various challenges and problems, which are a weakness for the NYC and Company. First, the weather in New York puts off tourists and thus a weakness for NYC and Company. New York has two seasons only that are characterized by intense cold and heat. Secondly, the high crime rate can discourage tourist in the region leading to reduced profits for the NYC and Company. For example, between January and March of the year 2013, about 152 cases of murder had been reported. Clearly, tourists will avoid a place with a high crime rate.

Key stakeholders of tourism in New York and its neighborhood

The tourism industry in New York is comprised of a wide range of stakeholders. Most of the stakeholders of the tourism region in New York and its neighborhood are members of the NYC and Company. The members of the NYC and Company are almost two thousand, which points out to the high number of stakeholders in the industry. The stakeholders include restaurants, visitors’ services, transportation facilities, accommodation facilities among others. The members of NYC and Company are regarded as stakeholders of the tourism industry in New York and its neighborhood due to its ability to offer direct or indirect services to visitors in the region hence promoting tourism.

Important tourism policies/strategies

To ensure success in the tourism industry in New York, NYC and company have set up certain strategies. The internationalization strategy is one of the crucial strategies that have contributed to the increased profitability of the tourism industry in New York. NYC and Company have since the year 2006 established or enhanced their representation in ten countries around the world. The internationalization strategy has not only seen the number of international tourist increase but also the number of days they spend in the city as well as the amount they spend. On average, international tourists spend about 7.8 days in the city and spend about one thousand and six hundred dollars on average during their stay.

Market analysis

The tourism industry has been observed to have a remarkable growth in the recent past. According to NYC and Company, the number of tourists visiting New York is expected to reach 59.7 million up from 2015’s 58.3 million tourists’ records. This growth in the number of tourists will be 2.4 percent. If this trend is maintained, the number of tourists is expected to reach to about 67 million tourists by the year 2021. The growth of the tourism industry is evident from the way the flow of tourists in the country have been maintained in spite of other places in the country and around the globe experiencing turmoil in their tourism industry. Most of the tourists visiting the city are from countries such as Canada, Brazil, England and China. Other than the increase in the number of tourists in New York, the growth is also exhibited with regard to the economic impact. The growth in the economy can be attributed to increased tourism spending. In 2013, for instance, tourists’ spending in the city was forecasted to be at 39.4 billion US dollars, which is above that of the previous year, which was at 36.9 billion dollars. In the same year, the average hotel occupancy also rose. Since the year 2006, tourists spending have had an increase of 41 percent. This indicates that an extra 10.7 billion dollar is going to the neighborhoods of the city and to the local business, which portrays growth. The economic impact of tourism in 2015 was expected to rise to about seventy billion dollars. The growth of tourism in New York is also exhibited by the attainment of an all-time high economic impact in 2014 of an estimated amount of 100.1 billion US dollars. For fourteen years, New York and its neighborhood remained the most visited place by international tourists. The tourism industry has registered created a substantial amount of job opportunities for the people who live in New York and its neighborhood.

What have we got?

Tourism product portfolio

New York and its neighborhood are rich in tourism product portfolio. The list of the tourism product portfolio in New York and its neighborhood is endless. However, are some sites in the region that are necessary visit for the tourist wishing to visit New York region. Nevertheless, it will be impossible to visit them all on a single tourism trip to New York. First, the Statute of Liberty is by far the best site for tourist visiting New York. The Statute of Liberty was built in the year 1886 and was given to America by France as a gift. Apparently, it is the biggest statute in the entire world, measuring about 152 feet and weighing about 450,000 pounds, characteristics that make it an excellent tourism product. Secondly, the Empire State Building has for many years been the tallest building in the world not until about forty years ago when another building was built rising above it. The building has 102 storeys and three hundred meters tall. Thirdly, the central park is a significant tourism product in New York. Tourist enjoys playing in the park as well as walking, cycling among other activities. Fourth, The Metropolitan Museum of Art, which is usually known as The Met, was established in the 1870 and has been an important tourist site since then. The museum contains more than two million collections of pieces of art. Fifth, the Rockefeller Centre, located in Manhattan, is enjoyed by the majority of the tourists due to the entertainment it provides to them and the shopping complex contained in it. There is an arena in the Rockefeller Center, which tourists enjoy skating in. Inside the Rockefeller Center are restaurants, observation deck, and shops. Sixth, the Brooklyn Bridge, whose building was finished in the year 1883, is an attractive tourism product crossing the East River all the way from Manhattan. Seventh, St Patrick Cathedral is characterized of bronze doors, a seating capacity of 2,400, and rose window among others, which makes it an attractive site for tourist. This site attracts over 5.5 million tourists every year that indicate that it is a great tourist product. Eighth, the Wall Street is remarkable tourist attraction site. The Wall Street houses some of the world’s most significant exchanges. New York and its neighborhood are comprised of a wide range of tourist sites, and the list is inexhaustible and thus the region can be regarded as one of the richest in terms of tourism product portfolio.

Supporting products and infrastructures

Various products and infrastructures support tourism in New York and its neighborhood. The transport network is one of the best infrastructures that support tourism in the region. Advanced roads and subways allowing for the transportation of many people within the region at affordable charges network the entire New York Region. The subway network in the region is extensive and has more than four hundred passengers’ station as well as about three hundred kilometers of routes. This infrastructure is ever running all day every day allowing tourist to travel efficiently and conveniently at a time of their will. New York is connected to other regions in the country by advanced roads, which make the region accessible from other places, which in turns supports tourism in the region. Some of the roads connecting New York to other places include the Metro-North and the PATH. International tourism to the New York region is supported by good airports found in the region such as JFK Airport, which serves international flights thus supporting international tourism and LaGuardia Airport, which serves domestic flights thus supporting domestic tourism. Other things that support tourism in New York and its neighborhood include the availability of good and many restaurants. Some of the best restaurants in the region, which support tourism, include the Eleven Madison Park, the Lambs Club, Peter Luger among others. Additionally, the ability of the region to accommodate many people supports tourism in New York and its neighborhood. The region has many hotels that offer accommodation facilities to both the domestic and international tourists.

Image and branding

The NYC & Company does the creation of an image for marketing tourism in New York as well branding. However, marketing of tourism can be attributed to the former mayor of the region, Bloomberg, who started the strategies of attracting more tourists to the region. Apparently, the city is marketed oversee with the aim of attracting international tourists to the region. A lot of money is invested in marketing the city, which has, in turn, led to increased profitability in the region. The city government makes a huge contribution every year to the NYC and Company to assist it in carrying out the marketing of tourism effectively. The tourism officials are trying to market other boroughs of New York by persuading the tourists to visit other places besides visiting Manhattan, which is currently the best-preferred tourist destination in the New York region. Tourists are assured of security while visiting the regions so as to ensure that no one of them fails to visit the destination as a result of fearing for their life. NYC and Company has marketed New York and its neighborhoods through advertisements that appear on televisions, billboards, and the print media. The advertisement was done in countries such as Europe, Brazil among others. Additionally, campaigns have been started in the past with the aim of attracting Americans and international tourist to visit New York. NYC and Company has forged partnerships with companies linking up to the New York region. These companies include transport companies such as American Express and American Airlines among others. These companies promote travel to New York and its neighborhood. Clearly, the NYC and company contribute to the image and branding of the tourism in the New York region. The following images can be used in marketing New York and it neighborhood.

Statue of liberty

(Law, 2016, p.1)

Empire state building

(Law, 2016, p.1)

Metropolitan Museums of art

(Law, 2016, p.1)

Brooklyn Bridge

(Law, 2016, p.1)

External Environment

Competitor analysis

The tourism industry in New York faces stiff competition from other tourist destinations in the US. The people concerned with tourism in each of the tourism destinations in the US are working hard to ensure that the places they represent are the best regarding competitiveness. A recent report used aspects such as Trip Advisor review, Yelp reviews among other online research to estimate competition in the tourism industry in the US. According to the report, New York is second regarding competitiveness. New York faces stiff competition from Los Angeles, which is the leading tourist destination in the US regarding competitiveness. Other tourists’ destinations, which are competitive beneath New York regarding competitiveness includes Dallas, Detroit, and New Orleans among others. Apart from the local competition that New York experiences, the region also faces global competition. Unlike in the past where the tourism had not expanded in most countries, today, most of the countries in the world have an expanded and developed tourism industry. New York could have probably received a huge number of tourists in the year 1980 when North America and Europe were the major tourists’ destinations in the world. These two destinations accounted for about eighty percent of the global tourism industry. However, this figure has decreased to about sixty percent by the year 2010 and is expected to reduce further to about fifty percent by the year 2030.This is as a result of the tourist choosing to visit other destinations other than the US. Thus, the increased options for tourists to visit in the world pose a huge competition for the tourism industry of the New York region.

Key Trends Affecting the New York and its neighborhood tourism

Apparently, the tourism industry of New York and its neighborhood is characterized by an increasing trend in its growth. In the year 2014, the tourism industry of the New York State increased with a 5.4 percent growth in the tourists spending. The amount of spending of the tourists in the same year was at a record 62.5 billion dollars, which were eighteen percent more than that in 2008 just before the recession. The demand for rooms in the New York region by the tourist rose by 4.3 percent in 2014 whereas the room rates rose by 2.6 percent, which adds to about seven percent increase in the net hotel revenue. The number of passengers coming to New York rose as is evident for the increased counts of passengers at the airports in the region. People who are employed directly in the tourism sector rose by 3.2 percent in 2014 reaching to a value not reached previously. Likewise, the personal income rose by 4.2 percent. Concerning the growth of employment and personal income, it is evident that tourism outperformed the overall economy.

Conclusion

SWOT analysis

Strength

New York and its neighborhood are characterized of a rich tourism portfolio. This will earn a profit and thus benefit both the city and the five boroughs. The region has various things that support tourism such as good infrastructures, many restaurants among others. The region has an organization known as the NYC and company, which promotes tourism in the region.

Weakness

The poor weather characterizing New York is likely to put off potential tourist in the region. This will lead to reduced profits. Tourism is unequally distributed in the region such that Manhattan receives many tourists whereas other boroughs receive few tourists.

Opportunities

There is a robust growth in the tourism industry in the region, which is expected to continue having an increasing trend. New York is one of the leading tourist destinations in the country and thus is expected to continue receiving more tourists. The availability of many tourists’ destinations creates more opportunities for continued tourists’ visit in the region.

Threats

New York and its neighborhood face stiff competition from other local destinations such as Los Angeles, Dallas among others. Additionally, tourism in New York is threatened by global competition. This is because of the increase in the number of tourist destinations for the tourist.

Recommendation

To ensure optimal success in the tourism industry in New York and its neighborhood, certain recommendations need to be considered. First, the city government should increase the amount of funding to NYC and Company. Secondly, NYC should improve on the marketing of the region through increased advertisement. Finally, more campaigns should be initiated to ensure that tourists recognize other boroughs other than Manhattan alone.

Final thought

Evidently, New York and its neighborhood have a rich tourism potential. However, the potential is more concentrated in Manhattan than the other boroughs. An analysis of the market indicates that there is growth in the tourism industry in the region. However, competition from other local and destination is a huge problem. Therefore, the NYC and Company should improve on their marketing strategies to ensure the success of the industry.