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25 Tourism: Event

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“The native people showed us unusual kindness, for they kindled a fire and welcomed us all, because it had begun to rain and was cold.”

Acts 28:2 ESV

“Here’s to the nights that turned into mornings and the friends that turned into family.”

Anonymous

Discover the purpose of your work and your corporation 

What is your purpose in work?

  • You aim to pioneer and take the lead in the event tourism industry.
  • Your mission involves designing and developing a unique motorcycle rally in the untamed frontier of Borneo Island.

What drives your corporation’s core value?

  • Capture the new opportunities to invest in the emerging market.
  • The commitment in investing, developing, training, and promoting local communities, fostering interactions with international motorcycle tourists in the realm of event tourism.

One million motorcyclists ride home during Chinese New Year. A helping hand to one motorcyclist and friend.

Source: https://kknews.cc/news/mq6qbg9.html 2018

1.0 Executive Summary

Mission

  • Entity: Forge partnerships with target customers, government tourism agencies, investors, and international event tourism operators.
  • Stage 1: Develop the Trans Borneo Island Motorcycle Rally project, targeting 0.5 million riders and visitors over a 10-year program.

Key Management Team

  • Mentors: Visionary pioneers and industry leaders with a vast global network, offering invaluable guidance and inspiration.
  • Coaches: Mission-oriented industry experts providing practical solutions, ensuring the team remains focused on its objectives.
  • Partners:
    1. A project leadership group experienced in the development, operation, and financial management of the motorcycle tourism industry.
    2. A reputable investment manager with access to funding sources in the event tourism and motorcycle industry.
    3. International motorcycle tourism operators.
    4. Reputable local event tour operators with procurement capabilities, local networks, strong financial status, and government support.
    5. Target market customer groups.

Product Benefits

  • Tourists: Riders experience a sense of pride and achievement at the conclusion of event activities.
  • Investors: Hallmark investments akin to iconic events like the Olympic Games and Tour de France.
  • Unique: Investment in event tourism destinations boasting distinctive features.
  • Exclusive: Exclusive development and management rights.

Target Market

  • Customers: Grey nomads from Europe, USA, and Oceania; global motorcycle club members; Asian nations with a robust motorcycle culture.

Financial Projections

  • Investment: US$384 million (Start-up)
  • Cost: US$144.7 million/year
  • Revenue: US$308 million/year
  • Income: US$163.3 million/year
  • Payback: 3 years
Source: Author

Unique Business Model

  • Pioneer: Enjoy first-mover advantages in the motorcycle rally tourism sector in Borneo Island.
  • Team: Benefit from a robust international and local strategic stakeholder network.
  • Partner: Alignwith other tour groups to provide destination attractions and features.

2.0 Mission

2.1 Problem

  1. Event: Borneo Island lacks sophisticated event tourism infrastructure to cater to the special activities expected by international tourists.
  2. Invest: Borneo requires foreign investment and international operators in event tourism.

2.2 Solution

  1. Develop: Identify and capture opportunities to invest and develop event tourism projects.

2.3 Mission

  1. Entity: Establish partnerships with target customers, government tourism agencies, investors, and international event tourism operators.
  2. Stage 1: Develop “Trans Borneo Island Motorcycle Rally”: Target 0.5 million riders and visitors over a 10-year program.
  3. Stage 2: Invest in other event tourism projects.
Source: Semantic Scholar. Donald Getz 2007

3.0 Product

3.1 Product Description

Stage 1: Trans Borneo Island Motorcycle Rally Tourism Event.

Source: Google Map / Author

3.2 Product Attributes

  1. Primary Purpose: Achieving the main goal of the special event.
    • The Trans-Borneo Island motorbike tourism event covers 6,400 kilometers, connecting Sabah, Sarawak (Malaysian states), Brunei, and Kalimantan (Indonesia).
    • Breakdown by section:
      • Malaysia section: 2,311 kilometers
      • Brunei section: 168 kilometers
      • Indonesia section: 3,901 kilometers
    • The journey spans 4 weeks with stopovers in 20 major cities along the Borneo coastlines.
  2. Secondary Purpose: Promoting motorcycle tourism.
    • Exploration of the tropical environment during the journey.
    • Expansion to include a tour package on non-event days.
  3. Tertiary Purpose: Hierarchy of Needs – Maslow’s Theory of Motivation.
    • Connecting local communities and foreign tourists, providing supporting infrastructure for the motorcycle rally and tourism attractions.
    • Fostering camaraderie among bikers sharing the challenges and adventures of jungle rides.

3.3 Product Benefits

Benefits to Tourists

  1. Riders experience pride and achievement at the end of the event activities.
  2. Promotes stronger relationships and shared experiences among participants.
  3. Participants seize the opportunity to visit destination and cultural attractions.

Benefits to Investors

  1. Utilises hallmark sports events (Tour de France, Olympics) to promote the region from a touristic and participant perspective.
  2. Events tourists adhere to planned budgets, aiding cost control and profit margins.
  3. Exclusive development and management rights.

Event’s Contribution to Tourism

Source: Tillman Events & Tourism. Tillman, 2017

3.4 Product Competitive Advantages

  1. Exposure: International operators collaborating with local partners develop the motorcycle rally, generating global interest and exposure for Borneo as a tourism destination.
  2. Special: Showcases unique attributes of Borneo’s natural environment.
  3. Team: Investment partners comprise top specialists in the motorcycle tourism industry.

4.0 Market

4.1 Market Segment

  1. Motorcycle Rally Tourism Project:
  • Purpose: Motorcycle rally event and tourism in the tropics.
  • Rally: Target of 40,000 riders for the annual event.
    • Year 1 = 1,000 riders, doubling each year.
    • Year 7 = 40,000 riders.
  • Tourists: Target motorcycle tourism of 500,000 riders/visitors per year (42,000 per month, approximately 70 riders for 20 towns/attractions per day).
  • Profile: Older bike travellers with unique bike culture and traditions from the 1960s-1970s, alongside younger bike enthusiasts seeking adventure.

4.2 Target Market Strategy

  • Formulate Strategic Vision:
    • Target global motorcycle tourism industry operators, clubs, associations, and touring motorcycle manufacturers.
  • Resource Allocation:
    • Align resources strategically among stakeholders, target market groups, government agencies, international motorcycle-touring operators, and investors.
  • Design and Develop Route:
    • Create a route with destination attractions, branding it as a hallmark event.
  • Incorporate Principles of Solidarity:
    • Foster solidarity and camaraderie within the motorcycle community.

4.3 Market Needs

USA:

  • Sturgis Rally: 500,000 bikers in 10 days
  • Daytona Bike Week: 500,000 bikers
  • Laconia Motorcycle Week: 250,000 bikers in 9 days
  • Republic of Texas Bike Rally: 200,000 bikers in 4 days
  • Bikers Blues and BBQ: 400,000 riders in 4 days

UK:

  • England Thundersprint: 145,000 visitors in 2 days
  • England Bike 1055: 33,000 bikers in 1 day

Germany:

  • Germany Glemseck 101: 500,000 spectators in 3 days

France:

  • France Enduropal Le Touquet: 500,000 spectators
  • Millevaches Attracted: 3,500 bikers in two days

Australia:

  • Australia Ulysses Club: 5K-7K attendances at AGM rally

China:

  • China Lunar New Year: 1 million motorcyclists return home in 1–4 days

These events showcase a substantial demand for motorcycle rallies globally, emphasising the need for unique and engaging experiences in the motorcycle tourism industry.

 USA Sturgis Motorcycle Rally              China Lunar New Year motorcyclists
Source: Wikipedia. Heald, 2008
Source: NetEase. NHTX 2022

4.4 Growth Drivers

  1. Boomers: Baby boomers represent a growing group of grey nomad travellers.
  2. Trend: The global motorcycle tourism industry is witnessing an increase in the number of biker tourists.
  3. Growth: Mature-aged motorcycle riders have tripled in the past decade.
  4. Explore: Retirees and young bikers are seeking adventure in exotic places.

Case Study 1: Bureau of Transportation Statistics 2018 (USA)

  • 1985: Median age of owners – 27.1 years
  • 2003: Median age of owners – 41 years

Case Study 2: USA

  • 2017: Visitors booked 273 billion motorcycle trips in California.

4.5 Key Customers

Motorcycle Tourism Customers:

  • Grey nomads from Europe, USA, and Oceania.
  • Global motorcycle club members.
  • Asian nations with a strong motorcycle culture.

Target market motorcycle size

Sources: Motorcycle News Oxford Economics ACEM 2021 / ASEANStats 2018 / SOHU 2020 / World Atlas. Misachi 2019 / World Bank.

4.6 Competitions and Industry

Key destinations in the global motorcycle tourism industry

  • France: The Millevaches and Limousin Regional Nature Park is a beautiful area in central France.
  • France: Route des Grandes Alpes links the French Alps between the Mediterranean and Lake Geneva.
  • Germany: Alpine Route (Deutsche Alpenstrasse) – spectacular scenery of the Bavarian Alps. 
  • Germany: Altes Elefantentreffen – The Elephant Rally takes place annually in winter with 5,000 -10,000 riders from Europe.
  • Chile: Patagonia – the region is at the southernmost tip of Argentina and Chile, with the Andes Mountains as the dividing line. 
  • USA: Route 66 connects Chicago to Los Angeles.
  • Finland: Finland/Norway E69 The North Cape road–Far North Europe with excellent sea views
  • Isle of Man: The Tourist Trophy (TT)–Mountain course annual motor racing event
  • Austria: The Grossglockner High Alpine Road It is a paved mountain pass road at an altitude of 2,500 m. 
  • Italy: The Stelvio Pass – It is a paved mountain pass road at an altitude of 2,757 m. 
  • China: During the Chinese New Year holidays, it is a tradition for the outstation workers to spend the reunion in their hometowns with families and relatives. In recent years, motorcycle long march rallies had attracted up to 1 million riders at their peak, with 20,000 traffic cops directing safety and traffic at critical junctions.

Key accommodation providers in the global motorcycle tourism industry

  • Specialised biker tourist accommodation chain is common in Germany, Austria, Switzerland, Italy, Romania, Bulgaria and other parts of Europe.
  • Best Western and Marriott Frankfurt are well-known brands.
  • The motorcycle tourism industry needs a global hotel chain specifically designed for international motorcycle riders/tourists.

International Motorcycle Tour Companies:

  • Adriatic Moto Tours Slovenia
  • Adventure Motorcycle Tours Transylvania
  • Asia Bike Tours
  • Ayres Adventure Texas
  • Beaches Motorcycle Adventures New York
  • BikeRoundOz Australia
  • Blue Strada Tour North Carolina
  • Blue Rim Tours
  • Cape York Motorcycle Adventures Queensland
  • Colombia Motor Adventures
  • Compass Expeditions Australia
  • Discovery Destination Management
  • DNQ Travel
  • Eagle Rider Los Angeles
  • Ecuador Freedom Bike Rental
  • Edelweiss Bike Travel Austria
  • Global Buster UK
  • Hear The Road Motorcycle Tours Italy
  • Hispania Tours Spain
  • IMTbike Spain
  • International Tours Operators
  • Karma Yatri
  • Leod Motorcycle Escapes San Francisco
  • Motodiscovery Texas
  • MotoGreece Athens
  • Motoquest USA
  • Motorrad Tours UK
  • Mototouring Milan
  • Peru Motors
  • Reuthers Germany USA NZ
  • Ride Expeditions UK
  • Ride Hide Nepal Thailand
  • Ride in Tours
  • Riders of Sierra Madre Mexico
  • South Pacific Motorcycle Tours New Zealand
  • The French Ride Motorcycle Tours France
  • World On Wheels Australia.

Top global motorcycle tour companies

  • India:
    • Asia Bike Tours – Bhutan, Burma, China, India, Kyrgyzstan, Nepal, Thailand, Tibet, and Vietnam.
  • Norwegian:
  • Poland:
    • MotoFiesta – Spain, Portugal, Poland, Iceland, and Colombia.
  • Spain:
    • El Circulo Travel – Spain, Morocco, India, Tibet, Bhutan, Colombia, Chile, Argentina, and Brazil.
  • Sweden:
    • Explore360 – Iceland, Norway, Sweden, Wales, Romania, Morocco, Nepal, Vietnam, Sri Lanka, Uganda, and South Africa.
  • UK:
    • Magellan Motorcycle Tours – UK, Ireland, France, Germany, Spain, Portugal, Austria, Switzerland, Italy, Hungary, Romania, Slovenia, Bosnia, Croatia, Greece, Norway, Sweden, Denmark, Morocco, USA, Canada, Cuba.
  • USA:
    • EagleRiders – World’s largest motorcycle rental tour and membership company with over 200 worldwide locations.

Key players in the local market

  • Borneo Biking Adventures:
    • Motorcycle tour offered by expatriate.
  • Borneo Ride:
    • Provides motorcycle rental.
  • Gogosabah:
    • Motorbike rental.
  • Motoasia.bike:
    • Provides motorcycle tours to Borneo with HQ in Thailand.
  • Rental Moto Kevin 2 Balikpapan:
    • Motorcycle rental.
  • Rider Chris:
    • Private blog that provides motorcycle tour experiences.
  • Scooter Monkey Café:
    • Motorcycle rental.
  • Sewa Rental Motor Banjarmasin:
    • Motorbike rental.
  • TRUmoto Motorcycle Training & Tours:
    • Adventure tours in Sarawak.

5.0 Operation

5.1 Motives for attending Africa Bike Week

Source: Jornals of Economic and Financial Sciences. Kruger, Viljoen, and Saayman 2015

5.2 Operation planning

Source: Our Everyday Life 2022

5.3 Event management process

Source: Oracle 2016. “Copyright Oracle and its affiliates. Used with permission.”

5.4 Motorcycle tourism planning and operation

Source: Buffalochip.com Roberts-Sanfelipo 2019

6.0 Financial Implications

6.1 Investment Segment

  • Investment:
    • Motorcycles: 40,000 motorcycles X US$7,000 = US$280 million
    • Accessories: 40K X US$1,600 = US$64 million
    • Infrastructure hubs: 20 X US$2 million/hub = US$40 million
    • Start-up capital = US$384 million

Case Study: Motorbike Cost

  • China: US$4K–US$7K/500 cc
  • USA: US$7K–US$20K/500 cc

6.2 Production Cost

  • Motorcycle Maintenance + Insurance:
    • 40K X US$1,500/year = US$60 million
  • Food, Fuel, Accommodation, Bike Rental:
    • Rally: 40K X US$110/day X 7 days = US$30.8 million
    • Tours: 1,400 X US$110/day X 350 days = US$53.9 million
  • Production Cost:
    • US$144.7 million/year

6.3 Prices and Revenue

  • Rally:
    • 40K X US$2,800/week X 1 week = US$112 million
  • Tours:
    • 1,400 X US$400/day X 350 days = US$196 million
  • Revenue:
    • US$308 million/year

Case Study 1: Motorcycle Tourism – International Tour Prices

  • Balkan Adventure:
    • US$5,300 for 14 days
  • Berlin to Budapest:
    • US$9,500 for 15 days
  • Chile Patagonia Motorcycle Tour Package:
    • US$5,900 for 12 days
  • Chile Andes Motorcycle Tour Package:
    • US$12,300 for 16 days
  • Europe Ireland Tour:
    • US$4,800 for 8 days
  • France Motorcycle Tour Package (1):
    • US$4,500 for 10 days
  • France Motorcycle Tour Package (2):
    • US$2,800 for 12 days
  • France Route des Grandes Alpes:
    • US$3,000 for 10 days
  • Finland/Norway North Cape Road Motorcycle Tour:
    • US$8,800 for 14 days
  • Greece Central-Northwest Greece Tour:
    • US$3,330 for 12 days
  • Inca Royal Roads:
    • US$4,200 for 10 days
  • Italy Sachsenring & Italian Alps:
    • US$6,300 for 10 days
  • Italy Amalfi Coast & Southern Italy:
    • US$4,400 for 8 days
  • Italy The Stelvio Pass Tour:
    • US$2,300 for 7 days
  • Japan Three Island:
    • US$8,450 for 12 days
  • Mongolian Magic:
    • US$6,100 for 14 days
  • Morocco Tour:
    • US$4,700 for 15 days
  • Nepal Magic Mountains:
    • US$3,300 for 12 days
  • Peru Classic Inca Peru:
    • US$3,075 for 9 days
  • Portugal Best of Portugal:
    • US$4,700 for 12 days
  • Sardinia & Corsica Tour:
    • US$3,800 for 9 days
  • South Africa Tour:
    • US$3,900 for 13 days
  • USA Alpine Adventure West:
    • US$7,500 for 15 days
  • USA Route 66 Connects Chicago to Los Angeles:
    • US$7,900 for 15 days
  • Vietnam Highland Adventure Motorcycle:
    • US$2,900 for 10 days

Case Study 2: Borneo Tour Prices

  • Virgin Rain Forest Sarawak Tour:
    • US$2,700 for 7 days
  • Borneo Biking Adventures:
    • US$330 per day
  • Motorcycling Cost:
    • Bike Rental: US$76 – $100
    • Cost of Food, Petrol, and Accommodation: US$110 per day

6.4 Financial Return

Case study 1: Experiential Tour – Motorcycle Rally Events

Country              Event                                                       Revenue                   
USA: 		        Sturgis Rally 				             US$800 million
USA: 		        Daytona Bike Week 		             US$600 million
USA: 		        Laconia Motorcycle Week 	     US$100 million
USA: 		        Republic of Texas Bike Rally       US$50 million
USA: 		        Bikers Blues and BBQ 		      US$69 million
China: 	        China Lunar New Year 		      US$58 million
Europe:	        Various race events 		              US$365 million
Europe motorcycle economic impact 			  Europe motorcycle tourism revenue
Source: Oxford Economics / ACEM. Barraicua, Logan, Godden, and Bedford 2021

6.5 Source of Funding

1. Strategic Investors:

  1. New Investor:
    • Project leadership team with business and financial management focus.
  2. Financier:
    • Event tourism private equity groups.
  3. Operator:
    • International and local motorcycle event tourism operator groups.
  4. Target Market:
    • Asia, Europe, USA, and Oceania motorcycle riders.
  5. Government:
    • Tourism agencies.

2. Private Equities and Investors in the Motorcycle Industry

3. Consultants, development and funding managers to the experiential tourism industries

  • American Motorcyclist Association
  • ATPI
  • Fédération Internationale de Motocyclisme
  • International Motorcyclists Tour Club
  • Motorcycle Council of NSW
  • Motorcycle Industry Council
  • The Experience Institute
  • United Nations World Tourism Organization (UNWTO)
  • Women’s International Motorcycle Association

6.6 The Bonus Revenues

  • Service: Roadside café, accommodation, and tourism destinations catering to motorbike travellers.
  • Benefits: Design and develop niche functions, services, products, and international membership for the motorcycle industry, targeting 350 million motorbike owners and associated motorcycle industries.
  • Global: Align with other international motorcycle events to form a global organization aimed at promoting and generating new businesses and activities in the motorcycle industry.

7.0 Management Team

7.1 Key Management Team

  • Mentors: Visionary pioneers and industry leaders with a vast global network, offering invaluable guidance and inspiration.
  • Coaches: Mission-oriented industry experts providing practical solutions, ensuring the team remains focused on its objectives.
  • Partners:
    1. A project leadership group experienced in the development, operation, and financial management of the motorcycle tourism industry.
    2. A reputable investment manager with access to funding sources in the event tourism and motorcycle industry.
    3. International motorcycle tourism operators.
    4. Reputable local event tour operators with procurement capabilities, local networks, strong financial status, and government support.
    5. Target market customer groups.

In the event tourism industry, several global leaders have made significant contributions, shaping its growth and success. Here is a list of some of these remarkable individuals, honoured for their vision and dedication:    

These are just a few of the outstanding professionals and captains of the industry. The readers are encouraged to explore further and conduct their research to learn more about the management teams in this dynamic field.

7.2 Key Management Team Model

Source: Author

8.0 Unique Business Model

8.1 Successful Track Record

  • Successful partnerships with renowned local and international event tourism operators in the motorcycle industry.
  • Strategic alliances with global motorcycle industries, clubs, associations, corporations, and event organizers.

8.2 Entry Model

  • Partner: Collaborate with international motorcycle rally organizers, operators, government agencies, and MNCs for the Trans Borneo Island Motorcycle Rally Event.
  • Align: Forge strategic partnerships with local cultural tourism operators and destination groups to enhance value for event tourism visitors.

8.3 Unique Business Model

  • Pioneer status in motorcycle rally tourism on Borneo Island.
  • Robust network of international and local stakeholders.
  • Partnering with other tour groups for enhanced destination attractions.

9.0 Key Success Factors & Risk Mitigation

9.1 Key Success Factors:

  1. Development: Create distinctive features to position Borneo Island as a premier motorcycle tourism destination.
  2. Uniqueness: Prioritize road quality and riding experiences, emphasizing comradeship and group participation in adventures.
  3. Team: Foster strong networks with international and local event operators.

9.2 Risk Mitigation:

  1. Government Support: Seek and secure government backing for event tourism projects to minimize political risks.
  2. Health Measures: Implement a COVID-19 vaccination certification program to ensure participant safety.
  3. Local Engagement: Collaborate closely with local communities to generate interest, job security, and foster social and cultural interaction.
  4. Safety Measures: Design routes and travel destinations in collaboration with tourism operators to ensure health safety and environmental compliance.

10.0 Exit Strategy:

10.1 Forms of Exit:

  1. IPO (Initial Public Offering): Go public to offer shares to the market.
  2. Buy-out: Sell the business to an interested buyer.
  3. M&A (Merger and Acquisition): Explore merger or acquisition opportunities.
  4. Transfer: Facilitate the transfer of ownership.

10.2 Key Attractions for New Investors:

  1. Diverse Portfolio: Motorcycle tourism projects offer investment diversity in emerging markets.
  2. Adventure Opportunities: Frontier land with unique tropical and natural settings for adventurous experiences.
  3. High Entry Barrier: New business concept with a high barrier to entry, ensuring exclusivity.
  4. Derivative Services: Additional development in niche segments such as roadside cafes and hotel chains.
  5. Global Consolidation: Potential for global consolidation in the motorcycle rally events industry.
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