Falcon Lake Hotel and Resort Concept Study - 2011

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Falcon Lake Hotel and Resort Concept Study-2011R u r a l B u s i n e s s P r o g r a m - I n s t i t u t e F o r E c o n o m i c D e v e l o p m e n t

C e n t e r f o r U r b a n a n d R e g i o n a l P l a n n i n g R e s e a r c h - C o l l e g e o f A r c h i t e c t u r eT h e U n i v e r s i t y o f Te x a s a t S a n A n t o n i o

Zapata Resort Vision Plan 04-05-2011.indd 1 4/5/2011 1:41:12 PM

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Table of ContentsAcknowledgments ................................................... 3

UTSA Team ...............................................................................4

Preface ......................................................................................4

Economic Assessment Introduction ...............................................................................6 Community Information ............................................................6 Income ......................................................................................7 Educational Attainment .............................................................7 Employment: Recent Shifts ......................................................8

Economic Base Analysis Location Quotient Analysis .......................................................8 Shift Share Analysis ..................................................................9 Retail Trade Analysis & Gap Analysis .....................................10

Proposed Destination Resort Peer Assessment Comparable Resorts ...............................................................11 Resort Size & Distribution of Rooms, Suites, Villas, etc. ........13 Option 1: Small Resort Scenario ............................................13 Option 2: Medium Resort Scenario ........................................13 Option 3: Large Resort Scenario ............................................13

Marina Facility Comparison ..............................................14

Falcon Lake Hotel and Resort Concept..................16 Resort Hotel Room Choice.....................................................18 Conference and Convention Center .......................................18 Retail Area ..............................................................................18 Spa Facility ............................................................................18 Golf Course ............................................................................20 Fishing ....................................................................................20

Background Resort Planning ...........................................23

Tourism Industry in Zapata County ................................23

Zapata County Hotel Statistics (July 2008) ................24

Phasing .....................................................................................26 Phase I...................................................................................26 Phase II..................................................................................26

Phase III.................................................................................26

Sources Consulted ...............................................................28

List of FiguresFigure 1 Zapata CDP Map ..........................................................6Figure 2 Zapata County Map ......................................................6Figure 3 Average Daily Traffi c-Zapata, TX ..................................6Figure 4 Household Income Breakdown by Percentage of Residents ..........................................7Figure 5 Zapata CDP Educational Attainment ............................7Figure 6 Texas Educational Attainment .......................................7Figure 7 Hawks Cay Island Resort ...........................................11Figure 8 Fourwinds Resort and Marina.....................................11Figure 9 Horseshoe Bay Resort ................................................12Figure 10 La Torretta Lake Resort ..............................................12Figure 11 Highland Marina Resort ..............................................12Figure 12 Falcon Lake Dam ........................................................16Figure 13 Falcon Lake/Community of Zapata-Zapata County ....17Figure 14 Lakefront Cabins .........................................................18Figure 15 Proposed Resort Site ..................................................19Figure 16 Golf Course Concept and Connection to Exising Golf ... Course ........................................................................20Figure 17 Proposed Resort Grounds ..........................................21Figure 18 Proposed Resort Tennis and Pool Amenities ..............22Figure 19 Existing Hotels ............................................................24Figure 20 Proposed Resort Hotel ...............................................25Figure 21 Phases ........................................................................27

List of TablesTable 1 Zapata Average Income ................................................7Table 2 Educational Attainment for Population Age 25+............7Table 3 Zapata County Employment Changes by Industry - 4Q2008 to 4Q2009 (1-year) .....................8Table 4 Zapata County Employment Changes by Industry - 4Q2004 to 4Q2009 (5-year) .....................8Table 5 Location Quotients by Industry for Zapata County ......................................8Table 6 Local & National Employment Data ..............................9Table 7 Shift Shares by Industry ................................................9Table 8 Retail Market Power Opportunity Gaps: Zapata, TX...10Table 9 Distribution of Rooms, Suites, Villas by Resort...........13Table 10 Four-Resort Marina Facility Amenities Comparison ...14Table 11 Zapata County Travel Impact ......................................23Table 12 Full Hotel Statistics for Zapata County .......................24Table 13 Projected Full and Part-time Employment Potential by .. Phase ..........................................................................24

AcknowledgementsThe advice and assistance of the following groups and people have been invaluable in the preparation of this report:

Zapata County

County Judge Rosalva GuerraJose Emilio Vela, County Commissioner Precinct 1Gabriel Villarreal, County Commissioner Precinct 2Eddie Martinez, County Commissioner Precinct 3Joseph Rathmell, Former County Commissioner Precinct 3Norberto Garza, County Commissioner Precinct 4Mary Jane Villarreal-Bonoan, County ClerkDoroteo Garza, County AuditorLuis Lauro Gonzalez, Tax Assessor CollectorRomeo Salinas, County TreasurerDora Ramos, District ClerkAnna Guerra, Justice of the Peace #1Juana Maria Gutierrez, Justice of the Peace #2Fernando Munoz, Justice of the Peace #3Jose C. Gutierrez, Justice of the Peace #4Adalberto Mejia, Constable #1Henry Martinez, Jr., Constable #2Eloy Martinez, Constable #3Manuel M. Flores, Constable 4Amada Gonzalez, County AppraiserSalvador Elizondo, County JailerSigifredo Gonzalez, Jr., SheriffJose Lopez, 49th District JudgeSaid Figueroa, County AttorneyIsidro Alaniz, District Attorney

Zapata Economic Developmet Corporation (ZEDC)Erasmo Villarreal, Chair, City of Laredo Planning DirectorDr. Cruz Torres, Vice-Chair, Professor Emeritus Texas A&M

UniversityAmada Gonzalez, Zapata County Chief Appraiser, Secretary/

TresurerRicardo X. Ramirez, IBC Bank-Zapata Sr. Vice PresidentJose Maria “Pepe” Ramirez, Zapata National Bank PresidentCharlie Averitt, Zapata County Airport DirectorErnest Gerlach, SBDC Network Rural Business Program

CoordinatorLuis Gonzalez, L.A. Contractors President & Owner


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International WorkgroupHector Uribe, Zapata County Legislative AttorneyCounty Judge Rosalva GuerraJose Emilio Vela, County Commissioner Precinct 1Gabriel Villarreal, County Commissioner Precinct 2Peggy Umphres Moffett, Zapata County Chamber PresidentMaria Araujo, Texas Parks & Wildlife International Affairs DirectorCarlos Marin, International Boundary & Water Commission Acting CommissionerSilverio Garza, Jr., International Boundary & Water CommissionCaptain Fernando Cervantes, Texas Parks & Wildlife Game WardenRomeo Salinas, Zapata County TreasurerCarlos Rubenstein, Texas Commission on Environmental Quality Regional Director

UTSA TeamInstitute for Economic Development

South-West Texas Border SBDC Network Al Salgado, Director

Rural Business Program Gil Gonzalez, Director Ernest Gerlach, Program Coordinator Laura Cheng, Project Manager

Center for Community Business Research Dr. Dominique Halaby, Director Christine Shayne, Economist

Texas A&M International University-Laredo Richard Perez, Director Yael Rodriguez, Rural Business Advisor

College of ArchitectureUrban and Regional Planning Dr. Richard Tangum, Director Dr. Maggie Valentine, Co-Director Bert Moyer, Research Assistant II Lisa Taylor, Graduate Research Assistant Andrew McClung, Graduate Research Assistant Andy Alarcón, Graduate Research Assistant

PrefaceThis study describes a preliminary concept plan for a hotel and lake front resort development on Falcon Lake in the community of Zapata in Zapata County, Texas. The report also includes an economic base study for Zapata/Zapata County and a destination resort peer analysis. The clients for this vision plan are Zapata County and the Zapata Economic Development Corporation (ZEDC).

Dr. Richard Tangum directed the development of the Falcon Lake Hotel and Resort Concept Study for the ZEDC. The study is a joint initiative involving Texas A&M International University and the Small Business Development Center (TAMIU-SBDC), the University of Texas - San Antonio Rural Business Program (RBP), Center for Community Business Research (CCBR), Center for Urban and Regional Planning Research (CURPR) - College of Architecture (COA), and the Zapata Economic Development Corporation (ZEDC). The CCBR prepared the economic base study included in this report to evaluate Zapata’s local economy and its growth potential. It also analyzed Zapata’s tourism market and prospects for expansion.

Several outcomes are expected from this study. First, this preliminary analysis will help the ZEDC develop a more responsive investment strategy for the community of Zapata and Zapata County. Another expected outcome will be the development of a more defi ned strategy to develop Falcon Lake as a major tourism destination. A third outcome expected is that, as plans are put in place, the ZEDC and Zapata County will be in a better position to seek additional resources from private developers, the U.S. Department of Agriculture and the Economic Development Administration to address developmental needs along Falcon Lake and in Zapata County. Finally, the concept plan will enhance existing hotel properties by creating a lodging and destination recreation area that will enhance business growth in Zapata and Zapata County over the long-term

Dr. Richard Tangum, March 2011

Joe Medrano, Joe Medrano Insurance AgencyPeggy Umphres Moffett, ZEDC PresidentTerasa Hinojosa, ZEDC Administrative Assistant

Falcon Lake WorkgroupSandra ReyesJack MorganCarlos M. RamirezRamiro CerrilloAna TrevinoAngel GarzaCindy VenableEddie HolcombEliseo PadillaGeorge GoodwinHector TrevinoJoe TathmellJoe VelaLarry BridgemanMario Gonzalez-DavisNorberto GarzaPeggy Umphres MoffettRamiro Torres, Sr.Speedy CollettRomeo SalinasCounty Judge Rosalva GuerraStephen P. WalkerVicki Anderson

Fishery WorkgroupHector Uribe, Zapata County Legislative AttorneyCounty Judge Rosalva GuerraJoseph Rathmell, Former County Commissioner Precinct 3Captain Fernando Cervantes, Texas Parks & Wildlife Game WardenPeggy Umphres Moffett, ZEDC PresidentMaria Araujo, Texas Parks & Wildlife International Affairs DirectorNorberto Garza, County Commissioner Precinct 4Randy Myer, Texas Parks & WildlifeJesse Garcia, Texas Parks & WildlifeRicky Martinez, South Texas Outdoors


E c o n o m i c A s s e s s m e n tI n s t i t u t e f o r E c o n o m i c D e v e l o p m e n t


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Economic AssessmentIntroductionThis section provides an overall assessment of Zapata’s economy and its long-term prospects. This kind of analysis is especially important in terms of facilitating the development of the destination resort hotel to be located on Falcon Lake near the community of Zapata. The key to securing suffi cient investment to build this destination resort lies in defi ning its market. Equally important is the need to carefully examine Zapata’s economy and determine where it is today, and where it is going. The success of this destination resort is dependent, in part, on how well that economy is functioning and its ability to support this kind of facility. In the sections that follow we will examine Zapata’s economy and its impact on the community and the larger region. We will also look at the shifts that have been occurring in that economy, analyze changes in employment over several years, evaluate the concentration and relative employment status by sector, assess the importance of each industry in the local and regional economy, and examine some of the causes underlying the local economy’s growth. In addition, we will look at some of the opportunities Zapata has to grow its economy, especially in the tourism sector. The goal of this economic assessment is to evaluate some of the market forces that will determine the proposed destination resort hotel’s feasibility, and set the stage for additional analysis as the project moves into the design and development phase.

Community InformationZapata, a community of roughly 6,000 located in Zapata County, comprises about 40 percent of the county’s 14,000 residents.1331 Much of Zapata’s economic activity centers on the Falcon International Reservoir and Falcon State Park, where recreational fi shing of largemouth bass and channel catfi sh has become a major tourist attraction.

Figure 1: Zapata CDP Map144 Figure 2: Zapata County Map2

13 www.sitesontexas.com 14 www.demographicsnow.com

Zapata is located at the intersection of U.S. 83 and FM 496/Hwy 16. The majority of the traffi c coming to and from Zapata is from the south, toward the Rio Grande Valley, while smaller amounts of traffi c come from the north toward Laredo and the northeast toward Hebbronville.

Figure 3: Average Daily Traffi c - Zapata, TX1553

15 http://www.dot.state.tx.us/travel/traffi c_map.htm - 2008 Pharr Base Sheet

Note: The community of Zapata is not incorporated and is listed as a CDP (Census Designated Place). The County of Zapata is the only government unit in Zapata County.


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Educational AttainmentTable 2 shows education attainment in Zapata falls substantially behind the state average, with a full quarter of the population over age 25 not having completed an eighth grade education. Figure 5 and 6 graphically describes the educational attainment distribution for the Zapata CDP and Texas respectively.

Table 2: Educational Attainment for Population Age 25+181

  Zapata CDP Zapata County TexasTotal Popula on Age 25+ 3,653 8,112 15,432,128Grade K - 8 25% 30% 10%Grade 9 - 12 17% 15% 10%High School Graduate 30% 28% 27%Associates Degree 2% 2% 6%Bachelor’s Degree 6% 6% 17%Graduate Degree 3% 3% 8%Some College, No Degree 17% 15% 21%

18 Ibid.

IncomeAverage income for the Zapata CDP is slightly higher than for Zapata County as a whole. However, the average level of income for Zapata residents falls substantially below the average for Texas. Per capita income for Zapata shows the greatest difference from Texas averages, with Zapata residents falling 48 percent below Texas per capita income and Zapata County residents a full 52 percent behind the state average. These numbers indicate that income is lower in the less densely populated areas of the county. (See Tables.)

Table 1: Zapata Average Income1661

  Zapata Zapata County TexasAverage Household Income $40,031 $38,518 $66,563 Median Household Income $30,479 $30,434 $52,111 Per Capita Income $12,172 $11,248 $23,487

Additionally, Zapata houses a higher percentage of residents in each income bracket below $50,000 than Texas, while Texas has a higher percentage of residents in each income bracket above $50,000. (See Figure 13.)

Figure 4 Household Income Breakdown by Percentage of Residents1772

16 www.sitesontexas.com 17 Ibid.

Figure 5 Zapata CDP Educational Attainment

Figure 6 Texas Educational Attainment


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Employment: Recent ShiftsTotal employment in Zapata County declined 11 percent over the most recent year, for an overall loss of 424 employees. The heaviest industries hit were Natural Resources and Mining and Other Services. Natural Resources and Mining, which includes the energy industry experienced the largest physical loss of employment, with a 240 employee loss for the industry. Other Services employment declined by 66 employees, which is a 66 percent drop for the industry. This industry includes repair and maintenance; personal and laundry services; religious, grant making, civic, professional, and similar organizations; and private households. (See Table 3.)

Table 3: Zapata County Employment Changes by Industry - 4Q2008 to 4Q2009 (1-year)191

Industry Code Industry 4Q2008

Employment4Q2009

EmploymentPercent Change

Employment# Change

Employment10 Total, All Industries 3,782 3,358 -11.2% -424

1011 Natural Resources and Mining 866 626 -27.7% -2401012 Construc on 379 329 -13.2% -501013 Manufacturing 46 34 -26.1% -121021 Trade, Transporta on and U li es 476 423 -11.1% -531022 Informa on 0 19 N/A 191023 Financial Ac vi es 115 105 -8.7% -101024 Professional and Business Services 106 81 -23.6% -251025 Educa on and Health Services 1,012 1,019 0.7% 71026 Leisure and Hospitality 240 223 -7.1% -171027 Other Services 100 34 -66.0% -661028 Public Administra on 430 465 8.1% 35

As Table 4 points out, over a fi ve year period, total employment in Zapata County has remained more stable, with a 1.6 percent total increase.

Table 4: Zapata County Employment Changes by Industry - 4Q2004 to 4Q2009 (5-year)202


Employment4Q2009

EmploymentPercent Change

Employment# Change

Employment10 Total, All Industries 3,305 3,358 1.6% 53

1011 Natural Resources and Mining 665 626 -5.9% -391012 Construc on 367 329 -10.4% -381013 Manufacturing 27 34 25.9% 71021 Trade, Transporta on and U li es 371 423 14.0% 521022 Informa on 10 19 90.0% 91023 Financial Ac vi es 108 105 -2.8% -31024 Professional and Business Services 65 81 24.6% 161025 Educa on and Health Services 1,071 1019 -4.9% -521026 Leisure and Hospitality 215 223 3.7% 81027 Other Services 115 34 -70.4% -811028 Public Administra on 283* 465 64.3% 182

19 http://www.tracer2.com/cgi/dataanalysis/AreaSelection.asp?tableName=Industry 20 Ibid.

Economic Base AnalysisLocation Quotient AnalysisA Location Quotient Analysis, described in Table 5 shows the concentration and relative importance of employment by sector and the importance of each industry in the area’s economy was completed for Zapata County based on 4th quarter 2009 employment data from the Texas Workforce Commission. Zapata County employment was compared against the state of Texas to determine which industries are represented at a higher level in Zapata County than in the rest of the state. A portion of the jobs in those industries are considered to be Basic Sector Employment, meaning that the jobs are most likely producing goods and services not needed to support the local economy. These goods and services can be exported to consumers in neighboring or other counties. For this reason, these fi gures are sometimes referred to as Export Employment numbers. The higher the location quotient, the greater the percentage of employment in the industry is above the rest of the state of Texas. The areas with the highest Location Quotients are considered to be the industries of specialization in Zapata County.

Table 5: Location Quotients by Industry for Zapata County213


Employment% of Local

EmploymentEmployment

RankLoca on Quo ent

1011 Natural Resources and Mining 626 18.6% 2 7.41012 Construc on 329 9.8% 5 1.61013 Manufacturing 34 1.0%   0.11021 Trade, Transporta on and U li es 423 12.6% 4 0.61022 Informa on 19 0.6%   0.31023 Financial Ac vi es 105 3.1%   0.51024 Professional and Business Services 81 2.4%   0.21025 Educa on and Health Services 1,019 30.3% 1 1.21026 Leisure and Hospitality 223 6.6%   0.71027 Other Services 34 1.0%   0.41028 Public Administra on 465 13.8% 3 3.11029 Unclassifi ed 0 0.0%   0.0

Four industries – Natural Resources and Mining, Construction, Education and Health Services, and Public Administration have location quotients greater than one, indicating that these industries have a higher degree of specialization and potential for exporting goods and services outside of Zapata County. The most dominant is Natural Resources and Mining with a location quotient of 7.4. This industry includes oil and gas drilling and production plus related industries.

Because the Natural Resources and Mining industry has such a high percentage of employment as compared to the rest of Texas, recommendations based on this analysis suggest that a high priority be given to the expansion of lesser industries in order to facilitate a well-rounded local economy. The addition of small manufacturing and increased professional, business, fi nancial and information services will serve to lessen the area’s reliance on the Natural Resources and Mining industry. The Leisure and Hospitality industry has a location quotient of less than one, indicating that the industry is underrepresented locally. The possible addition of a destination resort will increase the relative importance of this industry locally.21 http://www.tracer2.com/cgi/dataanalysis/AreaSelection.asp?tableName=Industry


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Shift Share AnalysisA shift-share analysis was used to determine some of the causes of growth or decline in a local economy. This particular analysis looks at which industries were growing locally relative to the level of growth or decline throughout the nation, and allows for the determination of three factors:

- To what extent local employment is infl uenced by changes in the national economy;- To what extent local employment is affected by the local region’s particular mix of

industries; and- To what extent local employment is affected by the changes in the local region’s

economy.

For the purposes of this study, a fi ve-year period was studied, from the third quarter of 2004 to the third quarter of 2009.221

Table 6: Local & National Employment Data232

Industry Code Industry

Local Employment:

Zapata County

4QFY2004

Local Employment: Zapata County

4QFY2009

% Change Local

Employment

Na onal Employment:

4QFY2004

Na onal Employment:

4QFY2009

% Change Na onal

Employment

10 Total, All Industries 2,091 2,250 7.60% 108,490,066 106,947,104 -1.42%

1011Natural Resources and Mining

669 748 11.81% 1,675,038 1,783,558 6.48%

1012 Construc on 289 282 -2.42% 6,916,398 5,948,837 -13.99%1013 Manufacturing 26 39 50.00% 14,257,380 11,810,371 -17.16%

1021Trade, Transporta on and U li es

312 376 20.51% 25,276,319 26,651,647 5.44%

1022 Informa on 9 26 188.89% 3,099,633 2,807,721 -9.42%

1023 Financial Ac vi es 102 107 4.90% 7,890,786 7,589,821 -3.81%

1024Professional and Business Services

64 93 45.31% 16,294,776 16,488,835 1.19%

1025Educa on and Health Services

289 318 10.03% 16,084,963 18,321,635 13.91%

1026 Leisure and Hospitality 224 229 2.23% 12,467,597 13,001,028 4.28%

1027 Other Services 107 -100.00% 4,287,999 4,369,780 1.91%

1028 Public Administra on 283 464 63.96% 7,406,947 7,410,606 0.05%

23 http://data.bls.gov/cgi-bin/dsrv?en

Table 7: Shift Shares by Industry

Industry Code Industry Na onal

Share Industry Mix Regional Share Shi Share

1011 Natural Resources and Mining 660 53 36 748

1012 Construc on 285 -36 33 2821013 Manufacturing 26 -4 17 39

1021 Trade, Transporta on and U li es 308 21 47 376

1022 Informa on 9 -1 18 261023 Financial Ac vi es 101 -2 9 107

1024 Professional and Business Services 63 2 28 93

1025 Educa on and Health Services 285 44 -11 318

1026 Leisure and Hospitality 221 13 -5 2291027 Other Services 105 -5 -109 -81028 Public Administra on 279 4 181 464

Table 7 provides insight into each industry specifi cally, as well as the overall sources of economic infl uence on Zapata County.

Industries locally outperforming the national trends for the industry over the last fi ve year period were:

• Construction• Manufacturing• Trade, Transportation & Utilities• Information• Financial Activities• Professional & Business Services• Education and Health Services• Public Administration

For these industries, regional economic shifts were largely responsible for the more positive industry trend in Zapata County than nationwide over the fi ve year period.

The only industries underperforming locally against national industry trends were Natural Resources & Mining, Leisure & Hospitality, and Other Services.


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Retail Trade Analysis & Gap AnalysisA Retail Market Power Opportunity Gap Analysis was performed for the Zapata County. This analysis yielded a total retail opportunity gap of $93.5 million. In other words, retail sales in Zapata were $93.5 million lower than the current expenditures of Zapata residents, a signifi cant opportunity gap, indicating that Zapata is not capturing its full market share, and the opportunity for expansion or improvement exists. Table 8 highlights the potential for new business locations, based solely on the annual purchases of Zapata residents which are taking place outside of the county. Any industry with an opportunity gap is already losing dollars to other counties in retail sales. Two approaches are possible in industries with medium or high potential for a new establishment, indicating that the opportunity gap is equal to or greater than the average sales for an establishment of that store type. First, resources can be dedicated to opening new establishments for these industry types, or the same resources can be used to help existing businesses expand or improve to capture a larger portion of the market.

Table 8: Retail Market Power Opportunity Gaps: Zapata, TX241

Retail StoresOpportunity Gap (Surplus): Zapata

CDP

TX Avg. Employee

SizeTX Avg. Sales Poten al

Motor Vehicle and Parts Dealers-441         Automo ve Dealers-4411 17,836,010 33 12,700,000 low Other Motor Vehicle Dealers-4412 122,612 8 1,800,000 low Automo ve Parts/Accsrs, Tire Stores-4413 197,208 6 400,000 lowFurniture and Home Furnishings Stores-442         Furniture Stores-4421 745,438 6 500,000 low Home Furnishing Stores-4422 983,130 7 2,000,000 lowElectronics and Appliance Stores-443         Household Appliances Stores-443111 569,091 10 1,200,000 low Radio, Television, Electronics Stores-443112 1,729,469 8 3,500,000 low Computer and So ware Stores-44312 625,111 5 300,000 medium Camera and Photographic Equipment Stores-44313 102,498 4 500,000 lowBuilding Material, Garden Equip Stores -444         Building Material and Supply Dealers-4441 8,044,239 20 900,000 high Lawn, Garden Equipment, Supplies Stores-4442 933,847 6 400,000 mediumFood and Beverage Stores-445         Grocery Stores-4451 7,755,866 13 4,300,000 medium Specialty Food Stores-4452 715,014 3 100,000 high Beer, Wine and Liquor Stores-4453 888,104 4 400,000 mediumHealth and Personal Care Stores-446         Pharmacies and Drug Stores-44611 8,764,962 13 900,000 high Cosme cs, Beauty Supplies, Perfume Stores-44612 387,041 4* 300,000 low Op cal Goods Stores-44613 287,306 5 800,000 low Other Health and Personal Care Stores-44619 686,024 5* 400,000 mediumGasoline Sta ons-447         Gasoline Sta ons -447 (9,150,450) 9 700,000 low

24 http://www.claritas.com/sitereports/Default.jsp

Retail Stores

Opportunity Gap (Surplus): Zapata

CDP

TX Avg. Employee

SizeTX Avg. Sales Poten al

Clothing and Clothing Accessories Stores-448         Men’s Clothing Stores-44811 308,613 10 3,000,000 low Women’s Clothing Stores-44812 1,221,095 5 200,000 high Children’s, Infants Clothing Stores-44813 418,808 8 200,000 medium Family Clothing Stores-44814 2,814,014 15 1,800,000 medium Clothing Accessories Stores-44815 115,488 4 100,000 low Other Clothing Stores-44819 337,526 4 200,000 medium Shoe Stores-4482 1,160,080 6 300,000 medium Jewelry Stores-44831 607,916 4 700,000 low Luggage and Leather Goods Stores-44832 75,792 5 500,000 lowSpor ng Goods, Hobby, Book, Music Stores-451         Spor ng Goods Stores-45111 882,782 5 300,000 medium Hobby, Toys and Games Stores-45112 680,354 4 1,500,000 low Sew/Needlework/Piece Goods Stores-45113 162,317 3 100,000 medium Musical Instrument and Supplies Stores-45114 195,648 4 300,000 low Book Stores-451211 393,999 7 200,000 medium News Dealers and Newsstands-451212 29,508 10 500,000 low Prerecorded Tapes, CDs, Record Stores-45122 270,677 7 600,000 lowGeneral Merchandise Stores-452         Department Stores Excl Leased Depts-4521 10,709,854 109 41,000,000 low Other General Merchandise Stores-4529 7,388,806 21 9,300,000 lowMiscellaneous Store Retailers-453         Florists-4531 144,022 3 100,000 low Offi ce Supplies and Sta onery Stores-45321 408,591 12 400,000 low Gi , Novelty and Souvenir Stores-45322 614,699 3 200,000 medium Used Merchandise Stores-4533 310,863 3 600,000 low Other Miscellaneous Store Retailers-4539 1,147,396 4 400,000 mediumFoodservice and Drinking Places-722         Full-Service Restaurants-7221 3,093,902 18* 600,000 medium Limited-Service Ea ng Places-7222 2,664,319 12* 500,000 medium Special Foodservices-7223 1,385,140 12* 500,000 medium Drinking Places -Alcoholic Beverages-7224 362,952 7 300,000 low*Na onal Data used for average business size where TX data unavailable.        

This analysis shows that Zapata County should be able to reasonably support additional building material and supply stores, specialty food stores, pharmacies/drug stores, and women’s clothing stores. In addition, Table 8 indicates several other retail stores that have a “medium” potential for new or expanding stores, including computer and software, lawn/garden equipment, grocery, liquor, children and family clothing, shoe, sporting goods (probably fi shing/hunting based, taking into account Zapata’s prime location for these sports), gift shop, and specialty food services. These types of businesses will also support an expanded Service and Hospitality sector in Zapata and Zapata County.


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Because the Zapata destination resort will also likely include a marina, four marina resorts were examined as well. The marinas and the resorts themselves vary in size, but each carry a variety of luxury amenities.

• Hawks Cay Island Resort – Duck Key, FloridaThis resort, situated on an island in Florida, is surrounded largely by water. This resort offers an example of a higher-end destination luxury resort, complete with a spa, a wide variety of high-luxury lodging and dining options, and the potential to accommodate large meetings and events.

• Fourwinds Resort & Marina – Bloomington, IndianaThis resort, located in rural Indiana, offers a less extravagant example of a lakefront destination resort that provides a marina, boat rentals, and a variety of other amenities while remaining affordable.

Proposed Destination Resort Peer AssessmentComparable ResortsThis study compared various aspects of fi fteen resorts throughout the United States, each with certain attributes similar to what the destination resort in Zapata could be modeled after. The resorts selected are all in largely rural areas. These resorts often have to deal with challenges that the proposed resort in Zapata will likely experience. These challenges include diffi culty in transporting tourists to the resort, a longer physical distance from suppliers, and the necessity to provide enough options and activities to keep tourists engaged without the benefi t of other nearby attractions. Similarly, the Zapata resort will likely face many of the same benefi ts and advantages as other rural resorts, such as pristine views, a lack of competition with other area attractions, and an environment of truly being “away from it all”.

The resorts described here range in size, accommodation types, and in the level of luxury provided to visitors. This variety presents an opportunity to examine a number of models for the Zapata resort in order to fi nd the one that most closely fi ts in with the available resources in the area, the target audience for the resort, and the level of sophistication needed to generate the desired price points for the resort’s rooms, suites, and villas.

Four fi shing destination resorts were also selected for this study. The proposed destination resort in Zapata will base itself largely on the fi shing opportunities available at the International Falcon Reservoir. These examples offer a view of how some fi shing-focused resorts behave and look like. There are typically smaller, and in some cases are more highly concentrated with cabins rather than with typical guest rooms. These resorts are:

• Falcon Point Ranch – Seadrift, Texas Located along the Gulf Coast, the Lodge at Falcon Point Ranch offers a very small and cozy, but still high-luxury, experience for visitors, with opportunities to hunt, fi sh, kayak, enjoy wildlife, or relax at the pool, hot tub and spa. This facility offers an example of a destination resort at the small end of the spectrum in terms of size.

• Norfork River Resort – Norfork, ArkansasLocated along two rivers in a rural area of northern Arkansas, this resort is centered almost entirely around fi shing, offering cabins, lodges, guided fi shing boat tours and fi shing boat rentals.

• Cacapon Resort State Park – Berkeley Springs, West VirginiaLocated in rural northeast West Virginia, this resort offers both a complete 18-hole golf course and a fully stocked lake and reservoir for fi shing. Slightly larger than the Norfork River Resort, this resort has options outside of fi shing and golf, that includes nature programs, horseback riding, and clay shooting. The cabin lodging options are also more varied, with “modern cabins” available with central air and heat, standard cabins, and bungalows.

• Tanglewood Resort and Conference Center – Pottsboro, TexasThis resort is located north of Sherman, Texas, near the Texas-Oklahoma border. Larger than Cacapon Resort State Park, the resort also offers golf in addition to fi shing. It is an additional step up in terms of offerings and amenities. It also includes a full-service spa.

Figure 7: Hawks Cay Island Resort

Figure 8: Fourwinds Resort & Marina


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• Horseshoe Bay Resort – Horseshoe Bay, Texas Located 45 minutes northwest of Austin in the Hill Country along Lake LBJ, Horseshoe

Bay Resort is 7,000 acre lake and 18-hole par golf resort. The resort offers various lodging accommodations, including a Marriot Hotel, Paseo Vacation Apartments, and lakeside condominiums. Four swimming pools, two tennis courts, on-site watercraft and boat rentals, two fi tness facilities, full spa and massage services, and a private airport and jet center are other amenities offered at the resort.

• La Torretta Lake Resort – Montgomery, Texas Located one hour north of Houston on Lake Conroe is La Torretta lake resort. Guests

can choose from over 445 suite accommodations amidst the newly-designed public golf course or lakefront villas with private piers. On-site boat and watercraft rentals and guided tours are offered at the full-service, 300-slip marina. The resort uniquely includes a water park with multiple pools and activities to accommodate a range of guest preferences.

• Highland Marina Resort – LaGrange, GeorgiaThis resort offers an example of a tournament-focused marina with a resort that can appeal to a wide audience due to its variety of accommodations. With an RV park, value cabins, fl oating cabins, waterfront cabins, and premier cabins, this resort attracts the entire spectrum of fi shing enthusiasts while still incorporating luxury elements into the business.

• Palmetto Dunes Resort – Hilton Head Island, South CarolinaLocated on Hilton Head Island along the eastern coast of South Carolina, this resort is by far the largest examined here, and serves as an example of the absolute maximum level of size, luxury, accommodations, and amenities that destination resorts can typically reach, while retaining the feel of a small town or city.

Seven additional resorts in rural locations throughout the country were selected for comparison, incorporating a variety of sizes. All are located in rural areas. They also include the same offerings as the Zapata destination resort likely will choose to incorporate. These resorts are:

• Quartz Mountain Resort – Lone Wolf, Oklahoma• The Ritz-Carlton Lodge, Reynolds Plantation – Greensboro, Georgia• Pinehurst Resort – Pinehurst, North Carolina• Ocean Edge Resort & Golf Club – Brewster, Maine• Lake of the Woods Mountain Lodge and Resort – Klamath Falls, Oregon

Figure 11: Highland Marina ResortFigure 9: Horseshoe Bay Resort

Figure 10: La Torretta Lake Resort


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Resort Size & Distribution of Rooms, Suites, Villas, etc.Destination resorts vary in their distribution of guest rooms, suites, condominiums, villas, cabins, and other types of accommodations. By carefully analyzing the comparable resorts, several different possible scenarios for the Zapata resort arise. Three scenarios are highlighted below.

Table 9: Distribution of Rooms, Suites, Villas by Resort

Rooms Suites Condos Villas, Cabins, bunkhouse, etc

RV Sites

Presiden al House/Suite

Total (excludes

RV)Falcon Point Ranch 12 0 0 0 0 0 12Canyon of the Eagles 62 0 0 33 23 0 95Lake of the Woods 0 0 0 26 0 0 26Norfork River Resort 14 0 0 20 0 0 34Highland Marina 0 0 0 40 40 0 40Cacapon Resort 48 0 0 31 0 0 79Lajitas Resort 41 48 0 2 101 1 92Quartz Mountain 118 2 0 10 0 0 130Tanglewood Resort 120 5 30 17 0 0 172Ocean Edge 90 0 0 154 0 0 244Ritz-Carlton, Reynolds 224 20 0 6 0 1 251Horseshoe Bay Resort 231 17 64 34 0 1 347Hawks Cay Resort 176 0 0 247 0 1 424La Torre a Lake Resort 0 373 0 69 0 3 445

Option 1: Small Resort Scenario

The fi rst potential scenario is modeled after Falcon Point Ranch, Canyon Lakeview Resort, the Lake of the Woods, the Norfork River Resort, and the Highland Marina Resort. This resort would consist of a small lodge with 10 to 15 rooms surrounded by 15 to 25 cabins or separate villas, each accommodating between 2 and 10 guests. This resort could accommodate between 60 and 300 guests at a time, depending on the number of cabins and rooms, the size of the cabins, and the layout of the guest rooms. The characteristics of the scenario are described below:

• Central focus of resort is fi shing.• It includes a 2-story lodge with 14 rooms, all overlooking the river or lake. Huge decks

across the front of the lodge provide ample seating for the enjoyment of the view. Rooms are available with either 2 queen beds or a small seating area or 3 queen beds.

• It also includes 20 cabins – 1 cabin is handicapped accessible – available in 2B/2B, 3B/3B, and 4B/3B confi gurations. Each has a covered deck overlooking the river/lake, with a full kitchen, and a living area.

• This resort scenario includes a conference center that accommodates up to 160 people, with a full kitchen, and a covered deck.

• Guided boat trips for groups up to 150 and boat rentals available for guest. Full day guided fi shing trip for two people priced at $215, and a full day boat rental base rate for two priced at $90 are also available.

• Daily base rates for this scenario are as follows:2B/2B Cabin: $205 for lake view, $185 for pool view3B/3B Cabin: $285

4B/3B Cabin: $345Lodge: $85 + $15 per person

Option 2: Medium Resort Scenario

Based on the Cacapon, Lajitas, Quartz Mountain, and Tanglewood resorts, this resort scenario likely will be more heavily populated with guest rooms than cabins. This resort will also likely have one to two main lodges with a total of 75 to 100 hotel-style and suite-style accommodations. Ten to 20 waterfront villas of the same or varying sizes provide a higher-luxury option for visitors. The characteristics of the scenario are described below:

• The resort will have 118 guest rooms and 2 suites in one long, slightly horseshoe shaped lodge overlooking the water.

• It will also include up to 8 two-bedroom cabins with kitchenettes, fi replace, and Murphy bed in living area.

• The resort will include a bunkhouse for large groups, accommodating up to 64 guests with 2 full-sized kitchens and 4 restroom facilities.

• It will include 4,800 sq ft grand ballroom and a 2,350 sq ft pre function area.• Up to 5 enclosed group pavilions with lake views are part of the resort.• A performing arts hall (seating for 697) is also included along with an open-air

amphitheater.• An 18-hole golf course with lighted driving range.• Bass/trout fi shing, hiking, caving, swimming pool & whirlpool, bird watching, biking trails,

nature center, water slides, mini-golf, go-karts, paddle boats, are included as well.

Option 3: Large Resort Scenario

This is a large-scale resort with options for extreme luxury and expansive lodging areas. This scenario calls for a total of 275 to 325 total rooms, suites, and villas. The balance can vary depending on the proposed resort layout. The comparables for this scenario vary widely in the distribution of rooms, suites, condos and villas; however, lodging is typically spread out across the entire resort. Since these kinds of resorts are typically larger in size, different pockets of lodging can be marketed to different groups. For example, a main lodge area of 100+ rooms and several waterfront villas can be heavily marketed to the visitors interested in watersports and fi shing. A golf course can also have a neighboring smaller lodge and a few cabins or villas catering especially to golfers. If a spa is included a resort might have its own small cluster of high-luxury lodging. A presidential house is also common in a large resort. This scenario includes the following:

• 176 resort rooms in the main resort building overlooking the water. 7 guest room options are available, varying by price according to size, balcony availability, and view.

• In addition there are four clusters of villas on various sides of the site, also included are a sunset village, marina village, harbor village, and sanctuary village. Villas are 2 to 4 bedrooms.

• Vacation rentals are also available.• Spa and fi tness center with personal training and both private and group fi tness classes

are included as well.• 6 restaurants are incorporated in the resort scenario.


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Recommendations for a marina size for the Zapata resort are based on the comparable marinas at upscale destination resorts. For the Zapata resort it is recommended that there be 128 slips for a smaller marina, 205 for a moderate sized marina, and 570 for a large marina.

Recommendations for vessel accommodations will depend on which sorts of boats the marina expects to accommodate. The Zapata marina may choose to include some slips large enough to accommodate 100-135 foot larger fi shing boats, while creating a number of slips for smaller (under 30 foot) boats.

Recommended amenities for the Zapata resort marina are based on these comparables:• Fueling services• Pump-out services• Potable water services• Electrical hookups (with 50+ amps available at some or all slips)• Boat ramp• Restrooms with washer & dryer services• Easy access to resort amenities for boaters

Other amenities and offerings that may be included, depending on the size and sophistication of the marina are:

• Dry boat storage• On-site technicians/service department• Scales for tournament weigh-ins• On-site dining and/or snacks• Boat rental facilities• Boat sales facilities• Boat tours• Kayaking, sailing, scuba diving, parasailing, kiteboarding, wakeboarding, and/or other

water sports availability

If the marina is located at some distance from the resort, transportation to and from the resort is recommended.

Should the Falcon Lake Resort be considered for Large Resort Scenario encompassing anywhere from 125 to 200 rooms with a combination of villas and suites in the main area, a market analysis will need to be completed to ensure that its size will be able to accommodate its expected market base. A marina that can accommodate up to 205 boats depending on the expected market and number of rooms that will be included in the resort can also be assessed in the market analysis.

• 20,000 sq ft of lakefront meeting space; with up to 6 conference venues are an integral part of the facilities.

• Fishing, scuba diving, water sports, swimming and tennis are provided.

Marina Facility ComparisonAmenities for comparable marinas are listed below, followed by recommendations for small, moderate, and large sized marina scenarios. The marinas examined are the Hawks Cay Island Resort in Duck Key, Florida; the Palmetto Dunes Resort on Hilton Head Island in South Carolina; the Highland Marina Resort in LaGrange, Georgia; and the Fourwinds Resort & Marina in Bloomington, Indiana.

Table 10: Four-Resort Marina Facility Amenities Comparison

  Hawks Cay Palme o Highland FourwindsVessel Accommoda on up to 100 up to 135 up to 30 “virtually any size”# Slips Available 85 170 240 900Fuel Dock Yes Yes Yes YesPump Out Service Yes Yes  Yes YesBoat Ramp Yes No Yes YesDry Boat Storage No  No 160 YesTechnicians/Svc Dept No Yes  Yes YesElectrical Hookups 130/150amp  30/50 amp 30/50amp 15/30/50/100 ampPotable Water Yes  Yes Yes YesBath Facili es Yes  Yes Yes YesWasher & Dryer Yes  Yes Yes YesOn-Site Dining Yes Snacks Yes NoTransporta on to Resort Yes  Yes No NoKayaking Yes Yes No YesSailing No Yes No YesFishing Yes Yes Yes YesParasailing Yes  No No NoScuba Diving Yes  No No NoKiteboarding/Wakeboarding Yes  No No YesBoat Rental Yes Yes Yes YesBoat Sales No  No Yes YesBoat Tours Yes Yes Yes NoFull Resort Access Yes  Yes Yes Yes

The Highland Marina Resort acts as a reasonable model for the proposed Zapata resort marina, since it is moderately sized with a strong fi shing focus. The marina offers docking for a large number of boats at 240. However, the marina is equipped to hold only smaller boats, with a maximum length of 30 feet with a fee charged for every foot over 24 feet in length. The marina itself offers a number of activities centered on fi shing. In addition to boat rentals, professional guides are available to conduct fi shing tours. The Highland Marina Resort also hosts 70 fi shing tournaments annually, with professional weigh-in equipment on a small stage surrounded by bench seating. The resort itself is unique, offering 40 one-to-fi ve bedroom cottages (1 to 5 bedrooms), suitable for small to large groups.


F a l c o n L a k e H o t e l a n d R e s o r t C o n c e p tC e n t e r f o r U r b a n a n d R e g i o n a l P l a n n i n g R e s e a r c h


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16 Figure 12: Falcon Lake Dam

Context Zapata County is located south of Laredo and Webb County in the Border Region of South Texas. The County is bordered on the north by Webb County, on the east by Jim Hogg County, and on the southeast by Starr County. Mexico and the Rio Grande form the county’s western boundary. The county’s largest community is Zapata. It is located on Falcon Lake at the junction of U.S. Hwy 83 and State Hwy. 16. Other communities in the county include San Ygnacio, Falcon, Ramireñ o, Escobar, and Lopeñ o. There are no incorporated communities in the county. The county seat is located in the community of Zapata. It is a rural county with a current estimated population of over 14,000.

The county’s present economy is mainly centered on oil and gas production, ranching, trade, services and tourism. Its primary employers are in the mining/energy, retail trade, construction, health care, and social welfare, services and government sectors. Current estimates put the workforce in Zapata County at around 5,400. The current unemployment rate for the county is 11.3%. This is considerably above the current state average of 8.3% (seasonally-adjusted). Average weekly wages in Zapata County tend to be slightly below the average for the region as a whole. About one-fourth of the county’s population is at or below the poverty line. The comparable fi gure for the state is around 16%. In 2009, the county’s per capita income was only $12,172 – nearly than half of the state’s fi gure of $23,487.

One of the key economic assets in Zapata County is tourism. Recreational facilities in the county include Falcon State Park/International Falcon Reservoir located on the Rio Grande east of Zapata, the San Ygnacio Historic District, Corralitos Ranch and San Francisco Ranch. The Texas Tropical Trail, which links the counties in the Lower Rio Grande Valley together, also runs through the area. There are also extensive hunting, fi shing, camping, and water recreational opportunities centered on Falcon Lake. In addition, Zapata County has a rich cultural heritage which is just beginning to be tapped into. Birding is another important attraction for the area. Tourism, as an industry, is a key sector because it has the potential of attracting new money to the county to fuel its economy. It can also impact local businesses. Tourists not only purchase local goods and services, they also spend money on other activities. These new monies are then circulated through the local economy. This project seeks to capitalize on Zapata County’s potential by focusing in on its most valuable asset – Falcon Lake – to expand its existing tourism market. The underlying assumption is that by investing in tourism in Zapata County, new investment possibilities will emerge.

Falcon Lake and DamFalcon Lake is located primarily in Zapata County in Texas and the Municipality of Nueva Ciudad Guerrero in the Mexican State of Tamaulipas. It is well known by fi sherman for the largemouth bass and channel catfi sh present in its waters. Falcon State Park is located on the shores of the lake and visitors can enjoy its scenic views and a variety of vegetation like Mexican Oregano and Texas Wild Olive, and wildlife species like black-tailed Jackrabbits and White-tailed deer. The park is 572.6 acres (144 developed) and is located at the southern end of the 98,960-surface-acre International Falcon Reservoir. It was leased from the International Boundary and Water Commission in 1949, and was opened to the public in 1965.1

The Falcon Dam which forms Falcon Lake is an earthen embankment on the Rio Grande and was built between 1950 and 1 http://www.tpwd.state.tx.us/spdest/fi ndadest/parks/falcon/

1954 for fl ood control, hydroelectric power generation, irrigation, water conservation and recreational purposes. It has a height of 150 feet and is 26,294 feet long. The dam itself is comprised of earth fi ll, concrete and reinforced steel and its center is overtopped by a spillway which is controlled by fi xed wheel gates and can release up to 456,000 cubic feet per second downstream.

Today the Dam and Reservoir are operated jointly by the International Boundary and Water Commission of the United States and Mexico and has a conservation storage capacity of 2,653,760 acre-feet of water.2

2 http://www.window.state.tx.us/specialrpt/tif/southtexas/infrastructure.html

Source: Zapata Economic Development Corporation


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17Figure 13: Falcon Lake/Community of Zapata-Zapata County

A e r i a l o f S i t e


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Falcon Lake Hotel and Resort Concept

The project in Zapata, Texas, referred to as the Falcon Lake Hotel and Resort concept is a tourism project situated on more than 70 acres of land that gently slopes towards Falcon Lake with views overlooking the Lake. The proposed development is located on Highway 83 south of Downtown Zapata. Falcon Lake Hotel and Resort is intended to compliment and reinforce existing local hotel properties in the area and provide a variety of accommodations and amenities including a golf course, spa, marina, and meeting space.

Regardless of size and complexity, for a resort to successfully blend together its functions, the proximity between facilities needs to be carefully considered. Figure 14 depicts a plan that establishes a continuity of design and fl ow of space between buildings necessary to reinforce both sense of place and connectivity. A series of connected covered walkways would provide shade and protection from the elements between buildings. The hotel, meeting spaces, spa, golf club, and retail space are all within a short walking distance of each other. Landscaping will include existing native South Texas fl ora and fauna, with citrus, olive trees, as well as fl owering plants.

The evolution of the resort began from one focused on offering a single amenity to one now consisting of a multi-amenity offering and it thus requires a conscientious design approach which carefully balances the various functions so that a sense of place is created. To help ensure that a resort has a sustainable concept, resort developers apply a conservation-minded mindset in both the planning and operational stages.

Because of a push in the resort industry to provide customers with the greatest amount of amenities, small hotels and resorts are pushing to expand the range of options available to their customers so they can stay competitive with larger resorts. Though the resort in Zapata would be more of a small boutique resort (150-180 rooms) than a resort destination (over 500 rooms), providing guests with golf facilities and hike and bike activities is not impractical considering industry trends. Moreover, the resort hotel and the three neighboring lodging facilities would have a combined total of over 300 rooms. This combination of available rooms could support small conventions. Business models particular to one type of resort have begun to overlap into other type of resorts, and this trend transcends occupancy levels.

Figure 14: Lakefront Cabins

Resort Hotel Room ChoicesWhat people prefer in room size, amenities, and facilities is inherent to the changing travel trends. Extended stays are causing resort designers to increase the size of rooms and include a sizeable balcony in all quarters. The proposed hotel and resort would include a combination of traditional rooms and separate cabin units. As described below, the cabin units are placed along the lake front and golf course edge where possible. These units also refl ect current standards with respect to room sizes and amenities. (See Figure 13.)

Conference & Convention CenterThe Conference & Convention Center will be a minimum 20,000 square-foot facility for dual-function event planning designed for fl exible meeting and event programs with additional space available for future development. The Center will include a major group meeting space with separate breakout rooms.

Retail AreaA small retail area (6,000 sq. ft.) is located east of the hotel. These shops could offer clothing, jewelry, leather goods, and other specialty items unique to the borderland region. The shops are also directly accessible to Highway 83 for passing travelers and residents of Zapata.

Spa FacilityThe spa industry in the U.S. has seen signifi cant growth in the last two decades. Between 1997 and 2001, visits to spas in the U.S. went from approximately 36 million to 156 million, representing a 430 percent increase over fi ve year period. Resort spas, destination spas, and day spas constitute the three main types of spas. Day spas are the most common of the three. In 2005, only twenty percent of overall spa industry sales came from hotel and resort spas. Unlike day spas, destination spas and resort spas involve extended stays and usually include a large variety of services. A resort spa is part of a larger hotel-oriented complex and is one of several recreational amenities provided to guests. A destination spa is the resort, and caters exclusively to people seeking “wellness”. Wellness “combines health with beauty, sport, tourism, urban daily life, and environmental awareness,” and is estimated by to be a $400 billion-dollar-a-year industry. To foster wellness for guests, the resort at Zapata could focus on providing outdoor recreational activities (boating, hiking, biking). To understand what might be popular for guests staying near Zapata, it is important to understand the infl uence that Zapata’s rural location will have on the preferences of guests at the resort. In fact, its location could be a major reason for guest wanting to stay at this resort.


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19Figure 15: Proposed Resort Site


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Golf CourseGolf in the U.S. and elsewhere continues to increase in popularity. Of the $62 billion dollars contributed to the U.S. economy by the golf industry in 2008/2009, $20.4 billion came from golf facility operations and $13.4 billion came from hospitality and tourism operations. These two components of a golf course are important. If a golf course is designed well and maintained at a high level, people are willing to travel to it because they can expect an enjoyable game of golf. At the same time golf is a major component of most major resort that attracts many visitors to the resort.

The spatial arrangement of golf facilities and course features also need to be considered as extensions of resort amenities. For example, the pro shop and clubhouse need to be located in close proximity to the 1st, 9th, 10th and 18th holes so that hotel facilities and golf facilities are easily accessible at the beginning, end, and middle of rounds.

In 2002, roughly 45% of all money spent by golfers went to food and beverage, 33% went to clubs, 10% to golf balls, and 10% to soft goods, such as bags, gloves, and shoes. Once a game is paid for, the pro shop will need to provide all the goods that are typically in demand by golfers.

A strategy used in golf courses bordered by cabins would work well with the plan of the proposed Zapata resort. The area along the shoreline of the lake between the course and the water is a good location for cabins. As the golf course is a feature amenity of the resort, it is important that a functional relationship be maintained between the cabins and the golf course. The cabins should be recessed away from the course far enough to allow golfers to play through without interference, but also close enough so that dwellers in the lodges can easily see golfers as they play through. Figure 16 shows how the placement of trees can serve both golfers and residents. The trees create privacy for both golfers and residents alike.

The use of trees and vegetation will also need to be carefully considered if a hike and bike trail is to be placed along the perimeter of the course. To limit the disturbance that recreational activities on the trail might have on golfers, it is necessary to surround holes with an adequate foliage density in certain spots, particularly around the greens. Misplaced hike and bike paths and inadequate foliage density would interfere with the fl ow of golf games and may leave a negative impression in the minds of golfers.

Figure 16: Golf Course Concept and Connection to Existing Golf Course

The proposed 18-hole golf course would lie on both sides of Highway 83. Golfers would walk or ride under the bridge to reach holes east of Highway 83. The golf course trail network would provide easy and direct access for the three lodging facilities east of Highway 83 to the shops and convention center at the new hotel site. Figure 15 shows the location of the Highway 83 bridge.

A golf cart trail would also provide a direct link to the existing nine hole golf course to the north. The trail would follow the arroyo to the existing course and could also be used by bird watchers.

FishingFalcon Lake is a major destination for serious largemouth bass fi shing. Annual fi shing tournaments in Zapata bring in visitors from across the United States. Four new piers with a large number of docks for fi shing boats and a boat launch ramp will be provided as part of the proposed resort. The intent here is to build on the world class fi shing now available on Falcon Lake.

E x i s t i n gG o l f C o u r s e


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21Figure 17: Proposed Resort Grounds


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22 Figure 18: Proposed Resort Tennis and Pool Amenities


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Background Resort PlanningSocio-economic and technological shifts in society are the key contributors to the ever-changing dimensions of resort planning and design. Increasing economic levels, social mobility, and household composition have changed the nature of travel itself. Two-income families, while having less time to travel, can spend more money at once. Accessibility to the internet gives people the ability to plan trips instantaneously and depart on a moment’s notice. In the mind of the modern traveler, a resort is seen more as a place to get away from it all. Activities like aerobics and hiking have become more popular. Amenity expectation levels of guests have risen alongside increasing concerns for health activities and the inclusion of exercise and fi tness centers. Access to golfi ng facilities is almost necessary. Modern travelers expect to have a variety of amenities available at their disposal for both fi tness and relaxation.

A resort destination usually has a combination of restaurants, retail, recreation and entertainment facilities to make it almost self-contained. The amount of activities provided is tailored to meet the demand of a destination resort’s market. Resort properties are similar to resort destinations in the sense that they offer amenities seen in destination resorts, but differ greatly in the amount of amenities provided.

The type of services offered by a resort depends on the number and make-up of its clientele, which in turn dictates the type of resort it is. A market analysis aids in determining the size of the resort and the feasibility of meeting comprehensive goals, such as development of spa and golf course facilities. A market analysis can also determine the range of interests of guests with regard to other potential activities as fi shing, hiking, and ecotourism.

Figures extrapolated from a market analysis are crucial to the planning and design process so that each of the elements detailed below can be tailored to fi nd the best balance between occupancy and demand.

Tourism Industry in Zapata CountyAccording to the Offi ce of the Governor – Economic Development and Tourism Division’s latest report on tourism in Texas titled: The

Economic Impact of Travel on Texas31 released in June 2010, the total direct travel spending in Texas was $51.8 billion in 2009.42 Local and state tax revenues directly generated by travel spending were $3.6 billion in 2009. This represented about 8 percent of all local and state tax revenues, not including property taxes, generated that year.53 Overall, travel spending generated an additional $7 billion in local, state and federal tax receipts in 2009. This, according to the report, represented about $800 in tax revenue for each household in Texas.64 Moreover, travel spending in Texas directly supported over 325,000 jobs with earnings approaching nearly $16 billion. Nearly three fourths of these jobs were in the leisure and hospitality sector which includes accommodations, food services, arts, entertainment and recreation.75 Indeed, tourism and the Leisure/Hospitality Industry in Texas is big business.

As Table 11 points out, total direct travel spending by tourists and visitors in Zapata County was about $15.8 million in 2009.86 Local and state tax revenues generated by tourists in Zapata County was around $830,000. Of that total approximately $170,000 were local tax revenues. This spending directly supported 180 jobs in the county with combined earnings approaching nearly $2.8 million.97 Most of these earnings were in the county’s Leisure and Hospitality Industry. Equally important, visitor spending in Zapata County increased from $9.5 million in 2000 to $15.8 million in 2009.108 Every year recorded an increase in visitor spending except for 2009. This decline refl ected the statewide drop in visitor spending as Texas and the rest of the country experienced general economic decline. Even with this decline, visitor spending still represented a signifi cant portion of Zapata County’s economy. More current data presented in the Economic Base Analysis indicates that during the Fourth Quarter of 2009, there were 223 people employed in the county’s Leisure and Hospitality Industry making it a sizable industry in the county.

Impacts resulting from traveler/tourist spending are usually divided into direct and indirect impacts. Travel impacts consist of estimates of travel spending, and the jobs, earnings and tax receipts that are generated by this spending.119 Secondary or indirect/induced impacts are derived from direct impacts and usually represent the

3 Offi ce of the Governor, The Economic Impact of Travel on Texas. Pre-pared for Texas Tourism, Offi ce of the Governor, Texas Economic Development and Tourism. Austin, Texas, June 2010. (Primary Research Conducted by Dean Runyan Associates, Portland, Oregon).4 Ibid. p.6.5 Ibid.6 Ibid.7 Ibid.8 Ibid. p.659 Ibid.10 Ibid. p.7311 Ibid. p.107

purchase of goods and services from other businesses that directly serve travelers and tourists like hotels, motels and restaurants. The sum of these impacts represent the total impact of all spending by visitors in a particular local area. The “multiplier” in this case, refers to the ratio of the total impact to the direct impact for employment and earnings.1210

Based on these data and those presented in the Economic Base Analysis, the rationale for locating a destination resort hotel in Zapata seems to be supported. Of course, a more comprehensive market analysis will be necessary if the decision is made to go forward with the development of this facility. Based on previous research by both the Zapata Economic Development Corporation and the Center for Business and Community Research in the Institute for Economic Development at the University of Texas at San Antonio, there is evidence to support the fi nding that tourism is increasing in the county and that a facility of this kind would serve to attract more visitors to the county as additional eco-tourism and recreational sites are built. Over the longer term, the Leisure and Hospitality Industry in Zapata County is expected to grow and expand thereby increasing the demand for additional hotel accommodations in the county.

Table 11: Zapata County Travel Impact

Year

TotalSpending

($000)

DestinationSpending

($000)Earnings

($000) Employment

State Tax

Receipts($000)

Local Tax

Receipts($000)

2009 15,830 15,830 2,790 180 660 170

2008 17,560 17,560 2,760 180 720 210

2007 14,700 14,700 2,450 160 580 130

2006 13,311 13,311 2,250 150 528 114

2005 11,698 11,698 2,049 140 458 83

2004 10,499 10,499 1,900 140 409 64

2003 9,806 9,806 1,809 120 385 58

2002 9,634 9,634 1,790 130 378 58

2001 9,988 9,988 1,821 130 395 69

2000 9,520 9,520 1,735 140 372 59

Source: Offi ce of the Governor of Texas: Economic Development and Tourism.

12 Ibid.


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Zapata County Hotel Statistics The occupancy rate for Zapata County in 2010 was 41.5%, an approximate 7% decline from 2009 and an overall 18% decline from 2008. Two triggers are the likely attributers to the signifi cant decrease in hotel occupancy: Firstly, the economic recession that has contributed to the overall 6.5% hotel occupancy decline in Texas from 2008 to 2010; and secondly, the increased violence along the Mexican side of the U.S.-Mexico border, which directly impacted Zapata County in October 2010.

In the overall Texas economy, lodging growth is predicted for 2011 and recovery to normal trend levels may be probable by 2013, though not certain due to national economic issues. Prior to the national, state, and local trends and events in 2009 and 2010, Zapata County experienced strong hotel occupancy rates in 2008 and prior, at times higher than the Texas state average.

The occupancy rate for Zapata County in the fi rst quarter of 2008 was 63.9%. The occupancy rate refl ects the degree of activity

Figure 19: Existing Hotels

H o l i d a y I n n E x p r e s s

S u n b r i d g e I n n a n d S u i t e s

T h e E x e c u t i v e I n n

P r o p o s e d L a k e H o t e l a n d R e s o r t S i t e

related to actual rooms being rented. This number is determined by identifying the number of rooms that were rented and divided by the total number of rooms available.

The State’s fi rst quarter hotel occupancy rate of 59.5% in 2008 refl ects a lower rate than that for Zapata County for the same period. The hotel occupancy rate in Zapata County was much higher at 55.7% in 2007. The decrease in occupancy between the 2007 and 2008 could be attributed to the addition of two new hotels in the area during this period.

In 2007, hotel occupancy rates for Zapata County were 57.2% compared to 61.3% across the State. However in 2006 Zapata County with fewer hotels had a much higher occupancy rate of 76.6%, which was up from the 2005 and 2004 levels of 64.4% and 65.4% respectively.

Hotel revenues increased dramatically in the fi rst quarter of 2008, to $1.3 million. Revenues for Zapata County were $3.2 million in 2007, and $2.5 million in 2006 indicates that there is a solid

market for visitors and tourists in Zapata.

Table 12: Hotel Statistics for Zapata County

Ye a r # o f R o o m s

E s t i m a t e dR a t e

O c c u p a n c y R e v e n u e R e v PA R

2 0 1 0 2 6 4 $ 7 0 . 8 0 4 1 . 5 % $ 2 , 8 3 2 , 0 0 0 $ 2 9 . 3 52 0 0 9 2 6 7 $ 7 5 . 2 3 4 8 . 3 % $ 3 , 5 3 6 , 0 0 0 $ 3 6 . 3 62 0 0 8 2 8 1 $ 8 3 . 6 7 5 9 . 5 % $ 5 , 1 0 4 , 0 0 0 $ 4 9 . 7 62 0 0 7 2 0 1 $ 7 7 . 0 2 5 5 . 7 % $ 3 , 1 5 8 , 0 0 0 $ 4 2 . 9 32 0 0 6 1 7 2 $ 6 8 . 0 6 7 6 . 6 % $ 3 , 2 6 7 , 0 0 0 $ 5 2 . 1 42 0 0 5 1 8 3 $ 6 2 . 8 4 6 4 . 4 % $ 2 , 7 0 2 , 0 0 0 $ 4 0 . 4 52 0 0 4 1 8 0 $ 5 4 . 9 1 6 5 . 4 % $ 2 , 3 6 1 , 0 0 0 $ 3 5 . 8 8

Source: Offi ce of the Governor of Texas, Economic Development and Tourism


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25Figure 20: Proposed Resort Hotel

M a r i n a

C o n v e n t i o n C e n t e rG o l f C l u b

R e s o r t L o d g e

S p a

M a r i n a

R e t a i l


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L o d g e G o l f C o u r s e

R e s t a u r a n t R e t a i l M a r i n a

P h a s e I 2 2 ( 6 ) 1 ( 1 ) 1 5 ( 4 ) 2 ( 1 )P h a s e I I

2 ( 1 ) 1 ( 1 ) 1 ( 2 )

P h a s e I I I

1 5 ( 5 )

To t a l 2 4 ( 7 ) 3 ( 2 ) 1 5 ( 4 ) 5 ( 5 ) 3 ( 3 )

(#) Part-time Employees

Phase IThe fi rst construction phase of the resort would include all amenities needed to operate along with key features used to attract guests. This would include the main lodge, infrastructure, 9-hole golf course with club house, tennis courts, swimming pool, parking and a private marina for guests.

The main lodge would accommodate the following facilities:

• 120 rooms (single and double)• Lobby, café, bar, and administrative facilities• restaurant• Fitness center• Tennis Courts• Parking• Swimming pool

The 9-hole golf course along with a club house constructed on the property will be the fi rst of a planned 18-hole course at the resort. Ultimately the new course will tie to an existing course just north of the property offering a 27 hole course for the golfi ng enthusiast. Building on what Falcon Lake already has to offer, world class fi shing, a private marina with covered and uncovered boat storage, fi shing piers, and a fl oating bait and tackle shop would conclude the fi rst phase of construction.

P h a s i n gBased on this Economic Assessment and the proposed Vision Plan for the destination resort hotel on Falcon Lake several recommendations are presented. They include the following:

• The development of the destination resort hotel should move forward as an integral part of the ZEDC’s economic development strategy for Zapata County. The continued development of this destination resort can serve as a catalyst for additional economic and business growth in Zapata and Zapata County if additional research supports its feasibility.

• The ZEDC should initiate a comprehensive market analysis for the proposed hotel to determine if it is feasible given current market conditions. If so the ZEDC should examine available funding/investment options to build the facility.

• On a broader front, the ZEDC should focus on the development of businesses and industries with location quotients of less than 1.0, as noted in this assessment, to continue to diversify the local and area economy. As part of this effort, it is further recommended that the ZEDC put in place a strategy to expand the Leisure and Hospitality Industry in Zapata County to meet expected tourism related needs.

• The ZEDC should dedicate retail expansion efforts toward those businesses and industries with demonstrated opportunity gaps and high potential for supporting an expanded tourism industry in Zapata County. Possible opportunities for retail expansion in the county include building supply stores, specialty food stores, pharmacies, clothing stores, shoe stores, sporting goods, gift shops, and catering establishments. These businesses should be targeted by the ZEDC for recruitment and/or expansion to meet the needs of residents in Zapata County and to serve tourists and visitors coming into the area.

Phasing a project allows developers and investors to plan construction based on fi nancial commitments. This offers fl exibility and allows them to adapt the project to the current needs of the market. Typically developers and investors with secured funding would opt to complete the project in one phase. An ongoing construction site can be an eye soar for potential guests and diminish occupancy. Table 13 depicts development and employment impact in three phases.

Phase IIThe second phase of the resort includes an addition to the main lodge which expands the room capacity by 60 rooms giving the resort a total of 180 rooms. Developed as a wing to the main lodge, services of the hotel would not be interrupted during this phase. Along with the added rooms, 24 stand alone cabins along the waterfront will offer guests additional privacy and constant views of Falcon Lake. A 12,000 SF convention center will expand the resorts capabilities to host small meetings and conventions for local industries such as fi shing and energy. A second marina on the southwest end of the resort would offer boaters and fi shermen an alternative for launching their boats and would also be open to the public. The second half of the golf course, east of Hwy 83, would also be completed in this phase. A man-made beach along the resort’s waterfront will complete the second phase and give guests a beach-like experience.

Phase IIIThe third and fi nal phase includes several amenities that will facilitate Zapata as a destination resort. An additional 8,000 SF will be added to the convention space, offering a total of 20,000 SF. A 15,000 SF retail center with frontage on Hwy 83 offers guests and passerby’s the opportunity to shop and buy merchandise without leaving the comfort of the resort. Catering to guests looking for more than just a weekend away and a little help to relax, a complete 4,000 SF spa facility is to be constructed south of the golf club. The fi nal step is to connect the existing golf course, north of the resort, with a link or path along a nearby arroyo. This link will expand the golf course; create a hiking and biking trail and a great viewing opportunity for bird watchers.

Table 13: Projected Full and Part-time Employment Potential By Phase


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27Figure 21: Phases

PHASE I

PHASE II

PHASE III

LEGEND


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Sources ConsultedDemographics Now. http://www.demographicsnow.com/.

Hawks Cay Preferred Hotels & Resorts. http://www.hawkcay.com/.

Nielsen. http://www.claritas.com/sitereports/Default.jsp.

Norfork River Resort. http://www.norforkriverresort.com./cabins.htm.

Quartz Mountain Resort. http://www.quartzmountainresort.com/index.php.

Texas Comptroller of Public Accounts. Window on State Government. Texas In Focus: South Texas. Infrastructure. http://www.window.state.tx.us/specialrpt/tif/southtexas/infrastructure.html.

Texas Department of Transportation. 2008 Pharr Base Sheet. http://www.dot.state.tx.us/travel/traffi c_map.htm.

Texas Parks & Wildlife. State Parks & Destinations. South Texas Plains Travel Region.Falcon State Park. http://www.tpwd.state.tx.us/spdest/fi ndadest/parks/falcon/.

Texas Wide Open for Business. http://www.sitesontexas.com/.

Texas Workforce Commission. http://tracer2.com/cgi/dataanalysis/AreaSelection.asp?tableName=Industry.

United States Department of Labor. Bureau of Labor Statistics. http://data.bls.gov/cgi-bin/.


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Falcon Lake Hotel and Resort Concept Study - 2011

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