MDI Tomorrow

Economic Prosperity Committee

Meeting May 30, 2002

On Thursday, May 30, about 40 people attended a workshop at the Jackson Laboratory, ìEconomic Prosperity: Whatís in MDIís Future?î Speakers were David Cole, President of Eastern Maine Development Corporation, the regional economic development agency covering the 6 counties surrounding Bangor, and Nat Bowditch, Assistant Director of the state Office of Tourism.

David spoke about the importance of developing a year-round economy, and the opportunities available to MDI, based upon the clusters of industry already present in the areaóboatbuilidng and medical research. He also talked about the possible attractions for ìLone Eagles,î people who work, using high technology, directly from home.

Nat came armed with statistics about the tourism industry in Maine and on MDI. Some of his information is summarized on an attached sheet. His final wrap-up urged MDI to protect its product, develop its product through the expansion of the shoulder season, increase transportation opportunities, and work with the neighbors in the region, including Washington County.

Attendees then broke into groups, where each person had a chance to present what he/she saw as the issues and opportunities for economic prosperity on MDI. Each group then selected their Top Ten issues/opportunities. The Top Ten lists from the 4 groups were then consolidated into what became a list of 18 issues/opportunities. Attendees then chose the 5 of those 18 that each saw as the most important. Those scores, and the Five Most Important factors for economic prosperity on MDI, follow.

The economic prosperity committee hopes to continue its work by focusing on those top five factors, working closely with associated committees, developing a strategic plan for economic prosperity for the island, and creating an ongoing task force to work closely with other local groups to implement change that will allow for economic prosperity.

Votes for top 5 issues and opportunities for economic prosperity on MDI

Diverse year-round economy

16

Ý

Affordable housing

14

Carrying capacity of both MDI and ANP

11

InfrastructureÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝ

ÝÝÝÝÝÝÝÝÝÝÝ Roads, Telecommunications, Reduce car impact, Transportation

10

Sprawl/finite land base

10

Lack of year-round retail, services, and employment

10

Maine anti-business environment

6

Living wages

5

Cohesive vision for economic development

5

Livability opportunities (great for families; great schools)

4

Wealth sourcesótaxes; retained earnings from tourists

4

Labor force availability

3

Absentee landlords not invested in community

3

Pressures of business consolidation (little guy gets squeezed)

2

Educational opportunities for Maine high school grads

1

Partner with regional economy

0

Support local agriculture business

0

Lack of public involvement

0

Notes from Nat Bowditchís tourism presentation:

(Most of these are year 2000 numbers)

Tourism in general: top reasons that generate overnight trips:

ÝÝÝÝÝÝÝÝÝÝÝ Touring

ÝÝÝÝÝÝÝÝÝÝÝ Special event

ÝÝÝÝÝÝÝÝÝÝÝ Outdoors

ÝÝÝÝÝÝÝÝÝÝÝ Casino

Maine

ÝÝÝÝÝÝÝÝÝÝÝ 8.8 million overnight trips (20% of all visits)

ÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝ 48% pleasure

ÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝ 41% visit friends/relatives

ÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝ 10% business

ÝÝÝÝÝÝÝÝÝÝÝ 35.2 million day trips (80%)

ÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝ These focus on coastal and southern areas.

Outdoors is a major component of attraction---is this going to be sustainable as baby boomers age?

Are there more opportunities in special events for MDI?

80% of Maineís tourism marketing resources go to Eastern Seaboard states.

Tourism Dollars

ÝÝÝÝÝÝÝÝÝÝÝ 5.4 billion spent in Maine in 2000

ÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝ 2.3 billion overnight

ÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝ 3.1 billion day trips

ÝÝÝÝÝÝÝÝÝÝÝ So want to focus on increasing those overnight trips, since they spend, proportionately, the lionís share of the money.

Where does that money get spent?ÝÝÝÝÝÝÝ

36% retail spending ÝÝÝÝ

29% food

13% transportation

12% lodging

10% recreation ñ is there an opportunity here?

Tax revenues from tourism are 330.2 million dollars. Tourism generates º of Maineís sales tax revenue (without auto sales, the percentage is 1/3). For every dollar spent to advertise Maine, $24 is brought into the state.

1997 Downeast and Acadia Travel Market

ÝÝÝÝÝÝÝÝÝÝÝ 1.8mm visits

ÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝ 1.3mm overnight

ÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝ 41% friends/relatives

ÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝ 53% pleasure

ÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝÝ ÝÝ 5% businessÝÝ ***opportunity

ÝÝÝÝÝÝÝÝÝÝÝ Touring is hugeó60% of the market

ÝÝÝÝÝÝÝÝÝÝÝ Outdoors is 21%

Online and internet services are the 2^nd most-used resource to plan a tripóif youíre not online, you are missing business.

Year split of tourism:

ÝÝÝÝÝÝÝÝÝÝÝ April to JuneÝ 22%

ÝÝÝÝÝÝÝÝÝÝÝ July, Aug, SeptemberÝ 50%

ÝÝÝÝÝÝÝÝÝÝÝ October to DecemberÝ 21%

When people come to Maine, they say that they (in order):

ÝÝÝÝÝÝÝÝÝÝÝ Shop

ÝÝÝÝÝÝÝÝÝÝÝ Eat lobster

ÝÝÝÝÝÝÝÝÝÝÝ Beach

ÝÝÝÝÝÝÝÝÝÝÝ Local food

ÝÝÝÝÝÝÝÝÝÝÝ Hike

ÝÝÝÝÝÝÝÝÝÝÝ Wildlife

ÝÝÝÝÝÝÝÝÝÝÝ Day cruise

ÝÝÝÝÝÝÝÝÝÝÝ Whale watch

ÝÝÝÝÝÝÝÝÝÝÝ Museum

Recommendations:

1. Protect your product
2. Develop the product
1. Shoulder season
3. Transportation alternatives
4. Work with region and neighbors