Economic Restructuring Strategies

The economy of the region has changed permanently from the coal and timber based economy of the early 20th century. Honaker is unlikely to re-emerge as a retail and services hub. Likewise, it does not seem amenable to industrial locations with significant, new employment levels.

Honaker has significant potential for future development but it will require breaking away from traditional ways of thinking about the Town's future - especially those that foresee a return to the Honaker of yesterday. The strategies recommended in the report are largely a departure from the economic base of the past, however, a more targeted retail expansion is clearly possible and desirable. Of paramount importance will be attracting visitors and new residents to the community.

Honaker's future economic development will be driven by the key assets of the area.

• History and heritage
• Preserved historic district
• Beauty and accessibility of the natural environment
• Family oriented lifestyle
• Proximity of new high tech job generators
• Broad band presence and "tech friendly"
• Community activity and involvement

There are four strategies that can contribute substantially to the future growth and economic development of Honaker. These strategies are designed to build upon the natural assets of the community in the areas of location, history, and community character. Each strategy has its own set of requirements for implementation as well as unique outcomes with implications for real estate development, retail and services business development and expansion.

Strategy #1

As outlined in the previous section, Honaker is a community with limited wealth and buying power. To reinvigorate the economy, the Town will need to attract new buy power. Tourism focused in two areas offers the opportunity for this. 

Heritage Tourism
A major economic engine in Southwest Virginia and throughout Appalachia, heritage tourism offers the traveler the opportunity to experience the history, people, music, arts and crafts of a region. This type of vacation experience is a rapidly growing sector of the tourism industry.

The full weight of the Virginia Tourism Corporation is squarely behind this approach - as evidenced by the development of The Crooked Road and 'Round the Mountain campaigns. Up to this point, both of these efforts have focused on a limited number of venues, however, it is clear that there will be the opportunity for "second tier" venues to begin to connect to these two major state and regionally supported campaigns.

There is currently an effort underway to develop an Artisan's Center in Abingdon on a site adjacent to I-81. The "Heartwood Center" will present the story of arts and crafts in Southwest Virginia with extensive educational, retail and service opportunities and a direct link to regional artisans. The "Heartwood Center" will serve as a gateway to the artisan community of Southwest Virginia by creating connections to regional centers through a system of "Artisan Trails".

With the completion of the Artisan's center in 2009, Honaker is positioned to be a nearby, related venue on the Heritage Tourism trail.

Why does Heritage tourism make sense economically?
Studies show that visitors to historic and cultural attractions tend to spend more money per trip and take longer vacations compared to other travelers. These tourists tend to be older, with higher income levels. The base for this type of tourism is broad and can include families, individuals, and retirees. These types of tourists are also more likely to spend more for dining and lodging - B&B's are favorite for this type of tourist.

• Regional Heritage Center
• Arts/Crafts/Music/Dance presentations and demonstrations
• Retail sales
• Dining
• Entertainment
• Places to Stay

The second type of tourism that Honaker is positioned to pursue is outdoors focused recreational tourism. This market is substantially different than the "heritage" based approach. The participants are generally younger and have somewhat less disposable income - the types of businesses that are supported include sporting & sportsmen's goods and equipment.