INVESTMENT RETURN ON THE OPENING OF A MUSEUM IN A WINERY CASE STUDY: WINERY-MUSEUM ONTANON

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1 INVESTMENT RETURN ON THE OPENING OF A MUSEUM IN A WINERY CASE STUDY: WINERY-MUSEUM ONTANON The term profitability can be analysed from different points of view. In this case, the enotourism case, economic benefits results are not immediate. I asked a colleague to give me his opinion on this issue and when I told him about today s workshop title: INVESTMENT RETURN ON THE OPENING OF A MUSEUM IN A WINERY, he laughed and he said Return? You'd better mean non-return.

2 Bodegas Ontanon is a family winery located in AOC Rioja, where Art, Wine and Mythology are fused together. The philosophy of Bodegas Ontanon is to treat wine, from the grape to the glass, like a piece of art. And Art is essential to our Winery-Museum, pioneering in Rioja, created in 1997 and designed by the artist Miguel Angel Sainz. The fusion between Wine and Art in Ontanon was not planned in advance. In the 80, my father Gabriel Perez Marzo met Miguel Angel Sainz and a great friendship was born. Their conversations were always about Wine and Art. Miguel Angel created several pieces of art related to wine for a small winery (like a hermitage building) that our family owns in the Riojan village of Quel. Gabriel admires the artist and his work and their friendship becomes more solid day after day.

3 In 1997 we started the refurbishment and building of our Winery-Museum Ontanon in Logrono. Mi father trusted Miguel Angel Sainz and left in his hands the project design. The result was the first Winery-Museum in Logrono, Rioja capital city. A winery whose philosophy goes around mythology and symbolism of the wine, an elixir for gods and humans along different civilizations. This combination Wine-Art gives meaning and a framework to Bodegas Ontanon. Our emblem since 1998 is, PASSION FOR VINE, PASSION FOR WINE, PASSION FOR ART.

4 A priori a winery is not a factory. Making wine has a romantic, passionate and exciting side. However a winery, like any other business, has the purpose to be profitable. At the end of the day, a winery is a company that would not work only with passion and romanticism; it must be profitable to continue existing. At this moment there are massive projects in Rioja in the wine sector. At all levels: architectonic, gastronomic, cultural, etc. High investments that are not probably looking at immediate economic return. We should think of other sorts of return: Generate good reputation and prestige Enhance brand imaging (Pholos...)

5 Solid selling arguments Be coherent in a global project Differentiate yourself from other projects Create end-users database Altogether, VALUE-ADDED RETURN. All winemakers would like to have the best vineyards and most exclusive and refined wines. And sell them for a high price of course. We would love to have the most stunning and great winery of our region, and if it is possible of the world. But which came was first? The chicken or the egg? I have the impression that sometimes gigantic economic projects have been launched without a previous serious analysis, simply encouraged by the impulse of a manager/s and/or an owner/s who want to show off. Once built the winery or museum, they realise that the wine is not known, it does not have a reputation, they don t receive as many visitors as expected, staff and maintenance costs are too high... the winery ends up generating continuous losses. You will all agree that due to current economic circumstances, businesses that generate losses are not attractive at all.

6 You can t plan an enotourism business before the winery itself. In my opinion, a logical chronologic order would be: 1. vineyards 2. winery 3. enotourism This is why before beginning any enotourism project we should consider the following. We could ask ourselves: How many tourists visit the region? How many of these would be potential visitors for our winery? Average wine consumption by tourist when visiting a winery. If we want to open a restaurant or hotel: how many meals do other restaurants offer in relation to the amount of tourists? How many booked rooms do other hotels have?

7 And we can t forget general economic investments like: Infrastructure Working team Diary expenses. We must define useful aspects of our project: What differentiates us from the rest of wineries? Using it to give a sense to the tour. What are we going to offer during the tour? Tastings, leaflets, DVD presentation, languages, etc. Price Collecting tourists details to create a marketing and direct sales database. Are we going to interact with our visitors in the Internet afterwards? What is the added image value of our wine tourism project to the winery global project?

8 If we decide to invest and develop a wine tourism project after deep consideration, we must do it 100%, with all our skills. This means: Opening every day, Saturdays, Sundays and Bank Holidays included. Offering good opening times and tour times. Employing professionals who know the wine sector and able to speak several languages. Taking care of visitors in a personal and friendly way. The tourist should fell at home and leave satisfied. Other added services: tasting courses, seminars, exhibitions, etc.

9 And here we are the Results!!!!: In 2003 Bodegas Ontanon received among all Spanish wineries the award Best of Wine Tourism, in the Arts and Culture category (it was the first edition of this contest). Also in 2003 the winery was awarded Riojan of the year and in 2007 Riojan of El Mundo (Spanish national newspaper). On top of all this, Ontanon wines were selected Official Wines at the Washington Opera during 2003/2004 season (with Placido Domingo as Artistic Director) Finally, we are engaged in various cultural activities such as art exhibitions, concerts, TV documentaries or book publishing. So far I have only talked about figures and data. However I don t want to miss this opportunity to say that the enotourism has, the same as wine, a magic face. It gives us the chance to give to drink to a thirsty person, the knowledge thirsty type. You create links between totally different people but who share a same passion: the passion for wine. I am not talking now about profitability; I am just talking about sense and sensibility....

10 You are all invited to visit to visit our Bodega-Museo in Logroño and we will be pleased to guide you in a magical experience about wine and mythology. Thanks.

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