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Final Report March 1997 Market Demand Market Position San Marcos' market position for tourism is detennined by demand and supply. Demand is a major factor because there must be sufficient customers to ensure viable economic enterprises. On the other hand, supply is a major factor because supply determines the characteristics of San Marcos' visitor population and influences the overall effect of tourism on the community. For example, while there may be a market demand for water ski shows, such an activity would not be suitable for Spring Lake. Thus, it is crucial that San Marcos develop a range of products that meet market demand, but that contribute to the overall character and ambiance of the community. The inventory of current and potential products in the Appendices contains products that the Blue Ribbon Committee thinks are compatible with the character of San Marcos. However, it is ultimately up to private investors and the proposed Tourism Development Organization to bring about the development of specific products. Initial Market Focus The Blue Ribbon Committee recommends that visitors to the malls constitute the initial market focus. These visitors should produce rapid success because: 1. They are already coming to the San Marcos area. 2. They can be reached through direct promotions at the malls. 3. They are affluent and are coming to the San Marcos area to spend money. 4. The magnitude of shopping can easily justify an over-night stay. 5. Non-shoppers may want alternatives to shopping. 6. The malls can benefit from community attractions that hold people in the area longer. 7. Shoppers at the malls are generally family-oriented groups that can be attracted to current and future products as described in this report. 8. Shoppers at the malls are often repeat visitors. Every effort should be made by the City Council and the Convention and Visitors Bureau to establish a strong San Marcos presence at the malls. The visitor center at Tanger Mall is an example of the sort of activity that should be expanded. Special displays, discounts, cooperative promotions between the malls and visitor attractions in San Marcos, maps, and interpretative materials can establish a consciousness that shoppers are "in San. Marcos." Secondary Focus While shoppers at the malls are the obvious initial market focus, the Committee was clear in its sentiment that these individuals should not be the only market focus. Other important market segments that are accessible and desirable include: Mayor's Blue Ribbon Committee on Tourism Development Page 7