Pipestone Hotel

The Pipestone County Economic Development Authority approached the Southwest Marketing Advisory Center (SMAC) to have a study conducted for them. The purpose of the study was to determine the attitudes and perceptions that businesses in the Pipestone area have towards economic development in Pipestone-more specifically-the possible construction of a new hotel in the Pipestone area.

Executive Summary

The purpose of the study was to determine the attitudes and perceptions that businesses in the Pipestone area have towards economic development in Pipestone-more specifically-the possible construction of a new hotel in the Pipestone area. The findings indicated a general willingness and acceptance of an additional hotel and the different levels of growth Pipestone will go through. The survey instrument focuses on four main areas: 1) Respondent Demographics; 2) Perceptions/Attitudes (Area Surrounding Pipestone); 3) Perceptions/Attitudes (Pipestone Community); 4) Perceptions/Attitudes (Pipestone Hotel). The following comparisons were also made: Revenue vs. Attitude, Age vs. Attitude, and finally, Gender vs. Attitude.

The most important issues shown as a result of the survey instrument are that the vast majority of respondents strongly agree that Pipestone needs to continue its economic growth, as well as its population growth, and that job opportunities would be a direct result from these growths. The vast majority of respondents also agree to varying extents that Pipestone is in need of additional hotel rooms to accommodate the growing economy and population. Over three-fourths of the respondents agree that Pipestone would be able to support an additional hotel. A majority of respondents agree that new businesses are always welcomed to the community and that these new businesses will require more hotel rooms than what Pipestone currently offers. Over 80 percent of respondents refer people to at least one of the three Pipestone hotels over the surrounding area hotels.

Conclusions

• 16 percent of the respondents have worked in Pipestone for 16+ years
• The majority (72 percent) of the respondent's current annual revenues are over $100,000 (40 percent are $500,001 and up, while 32 percent are from $100,001-$500,000)
• 74 percent of respondents feel that Pipestone needs to continue its economic growth
• Less than half (40 percent) somewhat agree that Pipestone has grown over the past few years
• Almost all of the respondents (94 percent) agree to a certain extent that Pipestone has a need for additional hotel rooms
• Over half of the respondents strongly agree that they welcome the new job opportunities that growth brings
• 96 percent of the respondents feel that the summer months are the busiest time in Pipestone
• 91 percent of the respondents think that new businesses will need additional hotel rooms
• All of the respondents feel that Pipestone needs more employment opportunities
• 93 percent of the respondents feel that Pipestone has a lack of hotel options
• 94 percent of the respondents feel that another hotel in Pipestone would encourage more visitors to stay overnight
• The majority of the respondents (87 percent) feel that an additional hotel would bring more events to Pipestone
• 79 percent of the respondents agree that Pipestone will be able to support an additional hotel

This information along with a detail of findings section was all given to the client in the form of a written report. A PowerPoint report was also presented.