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Monica Hale & Mary Altalo Science Applications International Corporation (SAIC) 27 May 2002

Current and Potential Uses of Weather, Climate and Ocean Information in Business Decision-making the Recreation and Tourism Industry. Monica Hale & Mary Altalo Science Applications International Corporation (SAIC) 27 May 2002.

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Monica Hale & Mary Altalo Science Applications International Corporation (SAIC) 27 May 2002

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  1. Current and Potential Uses of Weather, Climate and Ocean Information in Business Decision-making the Recreation and Tourism Industry Monica Hale & Mary Altalo Science Applications International Corporation (SAIC) 27 May 2002

  2. Investigation into the Use of Weather, Climate and Ocean Information in the Recreation and Tourism Industry Objectives of the Investigation: • Assess the importance, complexity, drivers, sophistication and skill of the industry 2. Analyze the requirements and needs for environmental information 3. Understand how the environmental information is used in the industry operations 4. Determine future interactions needs and uses

  3. Outline of Presentation • Background of the project • Findings of the Research: analysis of the Recreation and Tourism Sector’s needs for weather, climate and ocean information • Integrating environmental information into business decision making • Conclusions

  4. Approach • How the investigation differs from previous assessments • Scope • Interviews and analysis • From user rather than provider perspective: demand pull vs. supply push • ‘Tags’ the information and follows it through a business transformation into the decision aid • In depth on a few rather than broad brush • Links transformed product to raw data- “INFOMORPHS” • Capacity building requirements

  5. TOURISM RECEIPTS AS PERCENT GNP AND EXPORTS; AND PER CAPITA

  6. Complexity

  7. State and local Planners, Regulators, International Commercial Resort and Recreation Planners, Architects, Landscape Architects, Designers Funders, Investors Owners,Shareholders, Developers Finance developments, Design facilities, Building and Construction Financing Builders, Construction companies, Port Developers Accommodation, Hotel managers, Franchises, ‘Chain’ operators,Restaurants,Cruise lines, Resort managers Support and Subsidiary Organizations DMOs,Insurers,Retailers,Services (e.g. laundry) Business Consultants,Trainers,Research Organizations’ Industry Organizations,Trade Associations,NGOs Environmental Information in Policy and Planning of the Tourism Industry Recreation Plans Building Codes, Tax Rules Tactical Planning Strategic Planning

  8. RECREATION & TOURISM INDUSTRY PERFORMANCE METRICS: Business Models - Statistical and Forecast • Revenue per available room (RevPar) Accommodation sector • Occupancy rates Accommodation sector • Occupancy percentage Accommodation sector • Average Daily Rates (ADR) Accommodation sector • Comparative Operating Rates (COR) Accommodation sector • Gross Operating Profit (% before fees) Across the industry • Economic Impact Assessment Across the industry - Financial rate of Return (FRR) - Economic Rate of Return (ERR) • International arrivals Travel sector • Journeys made Travel sector

  9. Environmental Information in the Operational Business Models • Average daily temperature • Average Annual temperature • January rainfall in inches • July rainfall in inches • Number of Heating degree-days (Last 30 years) • Number of Cooling degree-days (Last 30 years) • Wind speed in Miles per Hour (Annual average) • Annual number of days sunny or partly sunny • Elevation (Mean feet above sea level) • Wave height • Ocean current speed and direction

  10. Hotels, Resorts and Theme Parks • Investment decisions • Finance and budgeting • Siting of Hotel and Resort Development • Design and landscaping • Construction and property maintenance • Engineering • Risk Assessment • Public Relations / Marketing / Communications • Specialist Resorts and Pursuits • a)      operations • b)      marketing • Regulatory compliance

  11. Recreation and Tourism Facility Insurers and Brokers • Specifying structural requirements. • Setting conditions of insurance. • Provision of ‘Alert’ services • Setting ‘premiums’ • Establishing ‘trends’ for basic losses and catastrophe losses

  12. Marine Transportation, Cruise Lines & Aviation • Ship deployment schedules • Routing decisions or re-routing alterations • Calculation of the weight and balance of aircraft • New airports to fly from • Temperature (air is denser at higher temperatures so the weight ratios are calculated accordingly) • Calculating percentage cost built in to the ticket price to cover added costs of poor weather conditions (From one to three percent additional costs are usually attributable to weather conditions) • Fog and high winds adversely affect ports and airports

  13. .

  14. Next Steps Industry Trials Pilot Roundtable Partnership Project

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