The resulting information will be utilized to attract investment to the area. As the lead proponent, the Village of Hazelton is cooperating with neighbouring local governments and First Nation communities. The intention of the project is to identify viable business opportunities and industry to attract investors that will benefit the entire community of the region.

Two previous reports, a Current Situation Analysis and a Cluster Assessment, were prepared as part of this project. This stand-alone feasibility assessment is one of two to be prepared as part of the Terms of Reference.

1.2 Description of the Opportunity

During the interview program carried out for this project, the lack of quality tourism accommodation was frequently mentioned as a regional weakness. It was felt that this deficiency left a major gap in the local hospitality sector and prevented the development of other opportunities, particularly in the area of outdoor recreation and First Nations tourism. The following feasibility assessment is for a lodge/resort type facility, which would cater primarily to travel markets – initially during the summer high season and eventually for all four seasons.

A destinations resort or lodge would offer private accommodations and act as a regional anchor capable of supporting a variety of tourism products, including fishing, nordic skiing, hiking, wildlife viewing and cultural interpretation. Activities associated with the resort/lodge could be self-guided or guided with the resort/lodge providing the guides or drawing on the services of local tourism entrepreneurs.

²^{Tourism
in the Kispiox Region}

2.1 Current Situation

Tourism is an important contributor to the community's economic base, both in terms of jobs and employment income. In the Kispiox, the proportion of the labour force employed in tourism is approximately 14%. Because tourism has relatively low wage levels compared to other export sectors, its proportion of total community income is much less at 7%. Continued growth in tourism markets and jobs are expected to drive this sector well into the next century.

Since the 1973 opening of the Cassiar highway, the Hazeltons have become a popular stop-over for Americans and Canadians travelling to Alaska and the territories. Highway improvements and increased ferry traffic through Prince Rupert have contributed to the growing highway tourism market. The Kispiox is also becoming increasingly recognized as a tourist destination in its own right. Quality scenery and recreational opportunities, such as fishing, hiking and camping, are attracting growing numbers of wilderness and adventure tourists. While there are not a lot of built attractions in the region, one of the most popular and well-known facilities is ‘Ksan, a Gitxsan village replica constructed in 1970 which includes traditional longhouses, a museum, art exhibition centre, carving school, gift shop, totems, art studios and interpretive tours. According to the Village’s administration the yearly visitation is about 50,000/annum over the last five years, with a 50-50 split between domestic and overseas tourists. Germany, France and Italy are all important markets. Recent improvements in the villages include an audio system in the three touring houses and seven long houses and the addition of a new food service outlet.

The BC Accommodations Guide lists six campgrounds/RV parks, two hotels/motels and two lodges in the Kispiox FD. Except for the lodges, most of these facilities are clustered along Highways 16 and 37. The Kispiox land base supports more than just local tourism outfits and facilities, however. In nearby Smithers, where there is a very significant tourism sector, many accommodation, food service, guiding and transportation services are directly supported by Kispiox-based activities. This is especially true for backcountry recreation – there are many guides and outfitters based in Smithers who use the Kispiox to serve their clients.

Outdoor recreation activities in the region include fishing, hunting, wildlife viewing, hiking, camping, kayaking, canoeing, rafting, cross-country and downhill skiing, snowmobiling, horseback trail riding, and mountaineering. Several areas in the TSA possess high quality wilderness recreation opportunities and attract visitors from the US and overseas.

The region’s mountains, and their well-established network of trails provide fine opportunities for rock climbing, ice climbing, hiking, horseback riding and hunting enthusiasts. The rivers, in addition to providing angling experiences, also offer excellent kayaking, canoeing and rafting opportunities.

Presently, there are three provincial parks in the TSA: Seeley Lake, Ross Lake [2] and Swan Lake Kispiox River Provincial Park. These parks have a combined area of 19,531 hectares. The Babine River Wilderness Corridor (8,900) has high recreational and tourism values. There are fourteen official Forest Service recreation sites and many hiking trails. Wildlife viewing, as well as hunting and fishing, have benefited in the short-term from timber harvesting because of the increase in access roads. In the longer term, this increased access may also have an adverse impact on wildlife populations.

The Ministry of Forests manages recreation sites on the Suskwa, Upper Kispiox and Sweetin Rivers, on Tsugwinselan and Sedan Creeks and on Little Fish, Mitten, Keyton, Pentz, Watson, Elizabeth, Octopus, Bonus and Derrick Lakes [3] . Established BC Forest Services recreation trails include Blue Lake, Cedarvale, and Rossvale Lake (ski trail), Boulder Creek, Whiskey Creek, Coyote Creek, Watson Lake and Oliver Creek. The last five trails are all in the Seven Sisters, where the amount of development and use is indicative of its popularity among recreationists.

2.2 Regional Visitation Trends

2.2.1 Visitor Volume and Value

It has been estimated that about 2.2 million visitors travelled to NWBC for a day or overnight trip, 73% of whom are residents of BC. The total NWBC share of provincial visitation is about 7% [4] .

Visitors to NWBC spend about $425 million per season with non-residents accounting for 33% of this spending and BC residents providing 67% of regional revenues. Both non-resident and resident visitors spend on average $54 per day during their stay. However, non-residents spend about $234 per stay in the region as compared to resident spending of about $178 per stay. The total NWBC share of provincial tourism revenues is about 5%.

Non-resident visitors spend an average of 4.4 days in the region and resident visitors stay in the region about 3.4 days per visit.

2.2.2 Visitor Origin

"Other" Canadians accounted for the greatest proportion (38%) of non-resident visitors to NWBC. Close-in regional US and Long Haul US visitors made up a further 23% and 17% respectively of travellers to the region. Overseas visitors accounted for about 13% of non-resident guests.

Resident visitors from northern BC accounted for the largest proportion (55%) of travellers to the region. Visitors from southern BC accounted for 34% of resident visitors to NWBC.

2.2.3 Trip Purpose

The main purpose of the visitors to NWBC who were on an overnight trip in BC and visited the region was for leisure purposes (81% non-residents and 86% residents). Other Canadians and US visitors were the most likely markets (21%) to have traveled for business purposes.

Nearly one-half of non-resident regional leisure travellers journeyed to BC to visit friends or relatives (44%). Long Haul/Overseas leisure travellers cited general sightseeing (39%) as their main reason for travel, followed closely by visiting friends and relatives (30%).Outdoor/wilderness activities were given as the main reason for travel by 20% of regional visitors (other Canada & close-in US) and 16% of Long-Haul/Overseas visitors.

Nearly one-half of resident leisure visitors (47%) traveled in BC to visit friends or relatives (VFR). About 17% cited outdoor activities as their main reason for travel.

2.2.4 Visitor Demographics

Non-residents averaged 44 years of age. Those from Long Haul/Overseas markets tended to be older with 38% aged 55 years and older. Nearly one-half of close-in ‘other’ Canadians and US visitors (47%) were between the ages of 35 and 54.

Resident visitors averaged 42 years of age and were more likely to be between 18 and 34 years of age than their non-resident counterparts (35% versus 30% respectively).

2.2.5 Visitation to the Local Study Area

Non-resident visitors travelled extensively throughout the Northwest region with the Kitimat/Stikine Regional District area [5] capturing about 29% of the total non-resident visitors.

2.2.6 Seasonal Variations

As expected, the summer season is by far the busiest tourism season in NWBC with 73% of the non-resident Long Haul/Overseas market visiting during this season. Over half of close-in ‘other’ Canadians and US visitors (55%) travelled to BC during the summer.

Almost half of the resident market (49%) visited NWBC during the summer season. This market also makes up about 31% of all visitors to NWBC during the winter months.

2.2.7 Overall Visitor Activities

While in Northwestern BC, non-resident visitors showed substantial interest in a number of activities including visiting art galleries/museums/exhibits (25%), city/town sightseeing (16%) and freshwater fishing (15%). Only 8% of non-resident visitors reported visiting friends and relatives while in the region.

Virtually all resident visitors (93%) spent time visiting with friends and relatives during their visit to NWBC. Other activity details are shown in (Table 2‑1 ).

Table 2 ‑1 : Overall Visitor Activities in Northwest BC

Activities Undertaken in the Northwest Region	Visitors to Northwest BC
	Non-Resident	BC Resident
	Total %	Total %	North %
*Art galleries/museums/exhibits*	25	*	*
*Sightseeing in the city/town*	16	¾	¾
*Freshwater fishing*	15	*	*
*Sightseeing in the country*	9	¾	¾
*Visiting friends or relatives*	8	93	94
*Zoos/natural displays/gardens*	8	*	*
*Hiking/backpacking*	7	*	*
*Nightlife*	4	87
*Resting/relaxing*	5	¾	¾

¾ denotes “not asked/no answer

* denotes insufficient sample size to report findings

2.2.8 Outdoor Activities

During their trip to BC, non-resident visitors partook in a number of outdoor activities with one-half taking part in wildlife viewing/bird watching and 43% visiting National or Provincial parks. Sixteen percent went freshwater or saltwater fishing. In addition, many non-resident tourists visited attractions such as historic sites (43%), art galleries/museums (28%) as well as First Nations cultural sites (26%).

BC residents travelling in BC also partake in outdoor activities with 41% participating in sightseeing and 33% participating in wildlife viewing/bird watching. About 24% partook in hiking/backpacking and nearly one-third (31%) visiting attractions such as historic sites. Results are shown in Table 2‑2 .

Table 2 ‑2 : Outdoor Activities Undertaken in Northwest BC

Outdoor Activities Undertaken	Overnight Visitors
	Non-Resident	BC Resident
	Total %	Total %	North %
*(Net) Land-based activities*	59	47	40
*Visiting National/Provincial Park*	43	19	17
*Wildlife viewing/bird watching*	50	33	30
*Hiking/Backpacking*	14	24	19
*(Net) Winter Activities*	1	3	6
*Downhill skiing/snowboarding*	1	3	5
(Net) Fishing**	16	19	17
*Saltwater fishing*	5	¾	¾
*Freshwater fishing*	15	¾	¾
*(Net) Boating (BC Residents)*	¾	14	13
*Photography*	46	38	27
*Sightseeing*	¾	41	34
*Golfing*	3	12	12

** Note: Among non-resident visitors, this includes both fresh and saltwater fishing. For BC resident visitors this represents all fishing and it is not possible to break this out on a freshwater and saltwater basis

¾ denotes ‘not asked/no answer’

2.2.9 Visitor Spending Profile

The single largest proportion of expenditures by non-resident visitors went towards package tours purchased in BC (28%). Long Haul/Overseas visitors, 35% of whom purchased packages, drove this predominantly. These visitors spent comparatively less on food and beverage expenses (14%) and accommodations (11%) ¾ most likely because these items were included in the package tours they purchased.

Food, beverages and accommodation represent nearly one-half of the total tourism monies spent in BC (46%) by close-in ‘other’ Canadians and US visitors. A substantial proportion of expenditures for this market also went towards transportation (18%) and package tours purchased in BC (16%).

Food, beverages and accommodation represent one-half of the total monies spent in the Northwest region by resident visitors. These visitors spent an additional 15% on accommodations while travelling in the region.

Table 2 ‑3 : Visitor Spending Profile in Northwest BC

% Distribution of Total Expenditures	Overnight Visitors
	Non-Resident			BC Resident
	Non-Resident Total %	Regional Can & US %	Long Haul & Overseas %	Total %	North %
*Food & beverage*	19	27	14	30	27
*Accommodations*	14	19	11	18	15
*Transportation*	16	18	14	21	23
*Souvenirs & gifts*	6	7	5	7	7
*Package tours purchased in BC*	28	16	35	*	*
*Outdoor activities*	3	3	3	6	7
*Attractions & cultural events*	1	1	¾	5	4
*Other expenses*	15	9	17	12	16

Non-resident expenditures represent all expenditures while in the province. BC resident expenditures represent only expenditures in the region.

¾ denotes less than 1%

* denotes package expenses for BC resident visitors were considered pre-trip expenditures and were not included in the visitors’ expenditures while travelling in BC

2.2.10 Room Revenues

Annual room revenues for the Northwest region were mixed between 1996 and 2000, with the Kitimat-Stikine showing a modest increase of 2.8%, while the Nechako experienced a drop in revenues of almost 10%. By comparison, the growth in BC revenues over the same period was an impressive 32%. There is no clear pattern of difference between motel and hotel properties as both declined along with the average. The exception was motels in the Kitimat-Stikine, which bucked the trend with increased revenues of 4.1%.

In 2000, there were a total of 121 properties identified accounting for 2,458 rooms. Per facility average room size was 20.3. Total room revenues were $17,133,000 yielded average room revenues of $141,595 per facility and $6,970 per room. Average room rates are unknown and would vary widely by facility. There are first class hotels in the region as well as low-budget motels. A review of room rates published in the 2001 Accommodations shows a mode rate of approximately $70, which would yield an occupancy rate, based on a 365 day operating year, of 27%. However, since many facilities are seasonal the real occupancy rate is believed to be much higher.

Table 2 ‑4 : Annual Room Revenue, 1996-2000

	Revenue				Revenue	Prop-erties	Rooms
	1996	1997	1998	1999	2000
*Kitimat-Stikine*	8,448	8,416	8,197	8,243	8,690	46	1,016
Hotels	3,615	3,440	3,269	3,155	3,396	10	353
Motels	4,547	4,596	4,621	4,697	4,736	23	544
*City of Terrace*	4,364	4,497	4,540	4,431	4,846	19	514
Hotels	2,996	2,913	2,837	2,762	2,958	6	253

*NECHAKO*	9,302	9,301	8,932	8,684	8,443	75	1,442
Hotels	2,917	2,974	2,750	2,936	2,808	10	416
Motels	5,083	5,181	4,930	4,546	4,405	29	687
*Town of Smithers*	4,544	4,467	4,396	4,257	4,294	18	448
Motels	1,544	1,645	1,633	1,383	1,488	7	208

BC	1,093,339	1,157,585	1,206,090	1,329,347	1,442,699	2,370	89,841

Source: BC STATS, BC Tourism Room Revenue, Annual Series 1996-2000.

Triple Creek Resort, Montana

Table 3 ‑1 : Comparable Analysis – Traditional Guest Resorts

Table 3 ‑2 : Comparable Analysis – Smaller Guest Resorts

Smaller Guest Resorts	Lost Creek Resort & SPA	Teton Ridge resort	Big ez LODGE	Triple Creek resort
Location / Contact Information
*City*	Moose	Tetonia	Big Sky	Darby
*State or Province*	Wyoming	Idaho	Montana	Montana
*Climate summer & winter*	Warm, dry, sunny summer, Av Highs 15 in May & Oct, Av highs low to mid 20’s between June/Sept, between 25/50mm “ rain @ month May/Oct. Average annual precip. 520mm (21”)	Warm, dry, sunny summer, Av highs 10/15 in May/Oct and Low to mid 20’s between June/Sept, Av Highs –3/+3 Jan/March, Lowest rainfall July/Aug - 25mm/ month, all other months between 25/35mm, Av Annual precip. 412mm (16”)	June through Sept av daily highs 75 – 80 Degrees F, Dec to March Av daily highs about 20 degrees F., more rainfall/snowfall than other resorts in this group, av. between 35 & 45 mm/month, Average annual precip. 570mm (22”) at Big Sky Village which is 1000” lower elevation. Nearby Big Sky resort gets 400” of annual snowfall	Warm, dry, sunny summer, Av Highs, mid to high 20’s June – Sept. Av highs of 3 degrees in Dec/Jan, Lowest rainfall July/Aug <2.5cm Highest Nov/Jan 3.5/5cm Average annual precip. 400mm (16”)
*Elevation*	2200 m	2100 m	2300 m	1300 m
*Special natural features, proximity to wild areas*	Within Grand Teton National Park, and adjacent to Bridger/Teton National Forest, close proximity to Yellowstone National Park, spectacular view of Grand Tetons from the Resort	On the West side of the Grand Teton Range, Grand Teton National Park	18 miles north of Yellowstone National Park, Near Lee Metcalf Wilderness area, Gallatin National Forest and Beaverhead National Forest	Bitterroot National Forest to the West and Beaverhead National Forest to the East
*Major population centres within 250 km*	4 major population centres including Logan Utah Idaho Falls ID Pocatello ID Bozeman Mon	4 major population centres including Logan Utah Idaho Falls ID Pocatello ID Bozeman Mon	6 major population centres including Butte, Bozeman, Helena, Great Falls, Billings and Idaho Falls	4 major population centres including Butte Mon Missoula Mon Helena Mon Lewiston Id
*Distance to airport*	Jackson	Jackson Hole – 75 km	Bozeman – 70 km	115 km
*Other Transport*	Free Shuttle service to Jackson Hole airport	Rental Cars recommended	Shuttle service to Bozeman airport	Free shuttle service to Missoula airport, private planes can land at Hamilton
*Phone* *Email and/or* *Website* *Contact*	307 733 3435 email directly from web site www.resortweb.com/lostcreek Mike & Bev Halpin	208 456 2650 email directly from web site www.resortweb.com/teton Jan Betts – guest services	406 995 7003 email directly from web site www.resortweb.com/bigezlodge GM: Scott Johnson	406 821 4600 tcr@bitterroot.net www.triplecreekresort.com GM: Wayne & Judy Kilpatrick
Ratings by Mobil, KLG, Canada Select et. Al.
	KLG – luxury class Mobil 4 star? Not on 2001 Mobil List	KLG – Luxury class	KLG – luxury class	KLG Luxury class Relais & Chateaux
Property & Facilities
*Property size*			4300 acres
*Year lodge opened*			1997
*Facility description*	Log construction, 10 cabins with 20 rooms, fridge, some with living room & gas fire place porch, bath, personal laundry service, weight room, game room	Log construction, main lodge with 5 suites, and cottage with 2 suites. Lodge has spacious living room, lower level dining room, each suite has balcony with views of Tetons, wood stoves, Jacuzzi tubs and steam showers, stocked ponds on the property, Mountain bikes available for use by guests	13 rooms in three lodge style buildings, Resort has award of merit from American Institute of Architecture. Western style furnishing, down comforters, plush robes, some rock fireplaces, (2) stocked trout ponds, croquet and bocce courts, Massive outdoor hot tub, exercise room Gift shop 2 professionally designed meeting rooms	Log construction Lodge and cabins with fireplace, hot tub, wet bar, cable, air conditioning, room service, whirlpool, fitness room, conference facilities, tennis courts
*Maximum number of guests*	40 – 50	12 overnight and 32 for daytime meetings	26 Up to 26 for meetings	28 singles, 24 couples, adults only 28 in conference facilities
*Unique/* *Special facilities*	Extensive Spa facilities		Each room has laptop computer, high speed access, voice mail, satellite TV, Par 72 putting course	Data ports in guest rooms
*Dining*	Outstanding cuisine with 2 entrées nightly	Delicious gourmet food, by candle light with views of the Tetons	5 star dining, wild game are the specialty, meals served indoors and out, room service available throughout the day and most of the evening	Fine cuisine
*Liquor License?*	Wine & Beer with meals only, BYOB in cabins	Wine & Beer with meals only, BYOB otherwise	Yes, full service bar
Operating Season & Activities Offered
*Operating Season*	May 28 – Oct 15	Mid May to October and January to March	Year Round	Year Round
*Occupancy Rates*				High Season: 2^nd week of June – Oct. 1^st & Christmas/New Years = 93% Mid Season: 2^nd week of May – 2^nd week of June = 30% Low Season: balance of year = 10%
*Primary & secondary summer activities*	Horseback riding, personal riding instruction, scenic float trips, heated swimming, pool, hot tub, tennis, hiking, wagon rides, auto tour of Yellowstone, evening entertainment (swing dancing, cowboy poetry, cowboy songs, Youth activity program 6-13 four evenings a week, exercise activities, massages	Horseback riding, fishing, hiking, skeet shooting, whitewater rafting by arrangement, Mountain biking, golf nearby	Hiking, mountain biking, wildlife viewing, Free shuttle to Nearby activities include fly fishing, rafting, kayaking, mountain biking, hiking, trail riding (from 1 hour to full day trips), local sightseeing, exercise activities, massage	Horseback riding, mountain biking, hiking, fishing, swimming, tennis, canoeing, kayaking, rafting, exercise activities
*Primary & secondary winter activities*	Not open in winter	Cross-country skiing, cross-country instructor, snow shoeing, dog sleds, sleigh rides, Snowmobiling (tours into Yellowstone), downhill skiing nearby	alpine and Nordic skiing at Big Sky Resort, trails rides, fly fishing, dog sledding, Snowmobiling in Yellowstone, massage	Snow shoeing, winter horseback riding, cross-country skiing, downhill skiing nearby, guided snowmobile trips
*Any unique or special activities*	Spa, massages, aromatherapy, facials, pedicures, personal training, yoga classes, Skeet shooting,	Soaring, bird hunting in the fall	In room massage therapy, Custom designed itinerary for each guest Summer/Fall, gondola rides at Big Sky resort Guided tours of Yellowstone	Guided ATV trips, flight seeing over the Bitterroots,
*Activities/* *services for additional* *charges*			Children’s counsellor can be arranged to set up activities Musicians, dancers, comedians poets, environmental experts can be arranged
Rates, Packages and Marketing
*Range of room rates, person/wk or person/day*	$2700 to $3100 per person per week - $385 to $450 per night per person	$275 to $435 per person per day summer, $225 to $335 per person per day winter	B&B $300 for 2 Skiers $250/night incl. meals, shuttle, lift Rates range from $250 to $700 per person/day	$250 to $500 per person per night
*Special package rates* *Minimum stay?*	7 days in summer, 3 nights in the fall	7 days in summer, 3 days in winter	Yes 3 nights over Christmas	No minimum stay
*Markets as identified in promotional material*		No specific programs for kids, Corporate retreats	Corporate clients, B&B, Skiers, Major focus on high end of market	Adults only except when whole resort is booked Conferences
*Where guests from?*			Long Haul USA
*How do new guests hear about you?*			Print/Web combination important
*Market forecast*			Steady demand at high end
*% direct booking*			A mix of direct & agency referrals, more direct as time goes by
*% clients returning guests*			Extremely high

Big EZ Lodge, Montana

BC Guest Resorts	3 Bars Cattle & Guest Resort	Little Beaver Creek resort	Tyax Mountain Lake Resort	Big Bar Guest Resort	eCHO vALLEY RESORT
Location / Contact Information
*City*	Cranbrook	Quilchena	Gold Bridge	Clinton	Clinton
*State or Province*	BC	BC	BC	BC	BC
*Climate summer & winter*	Warm, dry, sunny summer, cool dry winter. Av Daily highs in high teens May & Sept, Low to mid 20’s June to August. Av daily highs –4 to +7 Dec to March. Av Monthly rainfall 35 to 50mm May to Sept (1-2”) The snowiest months are Dec & Jan with approx 35cm/mo (14”) Annual Precip 384mm (15”)	Warm/dry, sunny summer Cool/dry winter. Av daily highs Mid teens in April, May & Oct, low 20’s June and Sept and mid 20’s July and Aug. Daily Highs Dec/Feb –1 to +3. Rainfall av. 22 to 28 mm May to Sept. Driest months March, April and October. Annual precip. 310mm (12.4”) All data fm Merritt weather stn.	Rain shadow of coastal mountains, warm, dry summers, cool evenings, winters cool and snowy with up to 5 ft on the ground	Summer, warm, dry, sunny, cool evenings, winter dry and cool	Summer, warm, dry, sunny, cool evenings, winter dry and cool
*Elevation*	985m	600 m
*Special natural features, proximity to wild areas*	Within 45 minute drive of Purcell Wilderness Conservancy and St Mary’s Alpine Provincial Park, Scenic views of the Rocky Mountains	Extensive open resort lands in the area,	Heart of Chilcotin Mountains on shores of Tyaughton Lake, gold rush history, ghost town of Bralorne, Adjacent to Southern Chilcotin Mountains Provincial Park	Rolling Cariboo resort land, mountains, lakes and Fraser River nearby	Cariboo resort country, adjacent to Fraser River, gold rush history, 1^st nations culture
*Major population centres within 250 km*	3 Major population centres including Metro Calgary and Metro Spokane as well as Coeur D’Alene Idaho	10 major population centres including metro Vancouver, Kamloops, Kelowna, Penticton as well as Bellingham and Everett Wash	8 major population centres including metro Vancouver, Bellingham, Sannich and Kamloops	9 major population centres including metro Vancouver, Kamloops, Penticton, and Bellingham Wash	9 major population centres including metro Vancouver, Kamloops, Penticton, and Bellingham Wash
*Distance to airport*	20km to Cranbrook Regional	80Km to Kamloops Regional 300km to Vancouver	5 hr drive north of Vancouver	6 hr drive from Vancouver, 3 hr drive from Kamloops	5 and one half hr drive fm Vancouver, 3 hr drive from Kamloops
*Other Transport*	Free shuttle to Cranbrook airport, 4 hrs drive from Spokane, 5 hrs drive from Calgary via Banff & Kootenay Parks		Air Charter available from Vancouver or Whistler BC Rail Service available to Lillooet	Shuttle service from Clinton, Williams Lake or Kamloops available for fee, scenic rail from Vancouver is an option	Charter flights fm Vancouver every Saturday $325 per person return, Scenic rail trip an option
*Phone* *Email and/or* *Website* *Contact*	250 426 5230 threebarsresort@cyberlink.bc.ca www.threebarsresort.com April and Jeff Beckley - Owners	250 371 7664 littlebeaver@glimpselake.com www.glimpselake.com Owners Alex & Natalie Shutz-Meissner	250 238 2221 fun@tyax.com www.tyax.com Gus Abel & Urs Villiger - Owners	250 459 2333 info@bigbarresort.com www.bigbarresort.com Owner: Anne Freeman MGR: Claire Gardner	250 459 2386 evresort@uniserve.com www.evresort.com Norm & Nan Dove
Ratings by Mobil, AAA, Canada Select et. Al.
		Relais & Chateaux Canada Select 5 Star	Canada Select 4 star	Rated #1 family guest resort in NA by Sunset Travel Magazine	Canada Select 4 and a half stars
*Property size*			275 acres, 4 remote lease sites for pack trips	Access to thousands of prime riding acres
*Year lodge opened*	1992		1986
*Facility description*	Log construction lodge and cabins. Cattle Resort, Horse training facility & upscale guest resort, Dining room, full bar, central fireplace, conference facilities. Cabins, western furnishing, sun chairs, queen beds, maid service Tennis courts Fly fishing equipment, hot tub, indoor heated pool, children’s play area, two outdoor riding arenas, mountain bikes available	7 king & queen suites, in 3 log cabins on lake, each with own dock, some with fireplace, Jacuzzi, steam room, mini-bar, other facilities include dining room, meeting room, whirlpool, fitness room, sun deck, indoor pool, billiard room, canoes, electric boats badminton courts, bar/lounge, laundry/dry cleaning, lake view, golf and tennis 30 minute drive	“Largest log lodge in the west” with 29 rooms and 5 log chalets on the lake shore with beach, canoe, kitchen, fireplace, telephone, tv, vcr Lodge has 100 seat dining room, lounge, tennis and volleyball courts, Recreation room, fitness centre, sauna, outdoor Jacuzzi, groomed ski trails, canoe, paddle boats, mountain bikes,	Log construction lodge with stone fireplace, 17 rooms in lodge and 4 separate log cabins, Tepees sleeping 4, Fireside lounge, games room, library, outdoor hot tub	Log construction two lodges with 15 guest rooms, many with scenic balconies and three cabins with fireplaces, lofts, decks, views, Spa, exercise room, games room, outdoor hot tub, indoor heated pool, equipped conference facilities, outdoor riding arena, mountain bikes available
*Maximum number of guests*	40	14 14 for meetings 18 for reception	Approx 100	About 50	40 Corporate groups 8-40
*Unique/* *Special facilities*	Indoor riding arena, 90 head of horses. 2 to 1 horse/guest ratio allows matching of horse to guest	Electric boats available	Camp sites available on the lake, sailboats, sandy beach	Camping & RV sites available	Resort grown organic food, pure spring water, Thai style spa
*Dining*	“Traditional fare with a flare” fresh fruit, home baking	Swiss executive chef -Renown cuisine, breakfast in room, lunch on porch, dinner in dining room	Al La carte or buffet dining, extensive wine list, Cabin guests have choice of cooking own meals and using resort facilities for lower rates	Licensed dining with “home cooked, resort style meals	Cordon Bleu chef, fresh farm meat and vegetables, buffet breakfast & lunch, dinner served at table with complimentary beer and wine, Special “eat right for your type” diet available
*Liquor License?*	Yes – Full Bar	Yes – Bar	Yes	Yes	Yes
Operating Season & Activities Offered
*Operating Season*	May/September Meetings Oct to May	May 1 to Oct 15	Year Round	Year round	May to Oct and Jan and Feb
*Occupancy Rates*			High Season: June – Oct., late December – April 15^th = 95-100% Mid Season: May & October = 40-60% Low Season: April 15-31 & Nov. 1 – Dec. 20^th = 0-10%
Horseback riding (2 rides/day), kids rides, riding instruction, advanced lessons, fly fishing, 2 guided hikes/week, swimming, river rafting (one aft/wk in July & August), volleyball, tennis archery, mountain biking, evening activities, massages available, a number of 18 hole golf courses nearby	Horseback riding, pony rides, riding lessons, pedal boats, canoeing, fishing, hiking, mountain biking, buggy ride, hay ride,	Horseback riding, pack trips, fishing, hiking, gold panning, mountain biking, volleyball, tennis, fitness room activity, canoeing, rowing, paddle boats, motor boats, sailing, evening entertainment, Beach BBQ	Horseback riding, mountain biking, hiking, fishing, canoeing, kayaking, rafting, exercise activities, sightseeing tours, golf and tennis nearby	Horseback riding, riding lessons, pack trips, mountain biking, hiking, fly fishing lessons, wildlife viewing, river rafting, working resort activities, exercise programs, evenings (TV/ game room, Karaoke, sing-along, line dancing, cookout, feed animals), gold panning,
*Primary & secondary winter activities*	Late fall, winter and spring lodge is converted into a meeting/ conference centre		Snow shoeing, skating, hockey, ice fishing, tobogganing, trail, backcountry skiing, guided snowmobile tours	Winter horseback riding, riding lessons, hiking, tobogganing, sleigh rides, cross-country skiing, snow shoeing, dog sledding, snowmobile trips	Cross-country skiing, snow shoeing, sleigh riding, wildlife viewing,
*Any unique or special activities*	Trips to Ft Steele Provincial Historic Park, Week long horsemanship packages, Resort roundup & cattle drive, championship reining training		Heli-skiing available, atv riding, fly-in hiking and fishing, flight seeing over glacier fields, ghost town tours	Pack trips, cattle drives, bird watching, star gazing, skating, ice fishing, gold rush history, interesting geological discoveries, 1^st nations history	Experience 1^st nations culture, Native dinner & dancing at High Bar Reserve, overnight stays in tepees, 4x4 safari, photography, visit to historic Hat Creek Resort, bird watching with resident naturalist and watch falcon training, fly in trout fishing, spa treatments (massage, facials, pedicure, manicure), ice fishing, cooking lessons
*Activities/* *services for additional* *charges*	Fishing Guides, Helicopter tours, downhill skiing	All drinks, Horseback riding, special excursions to Douglas Lake Resort, Okanagan wineries, shopping, fishing at other lakes, and float plane trips	Fly-in fishing and hiking, ski rentals, sleigh rides, snowmobile guide,	Horseback riding, cattle drive, buggy rides, hay rides, gold panning, guided hiking, fishing equipment, canoe, pedal boat, mountain bike, children’s activities, dog sledding, ski rentals, Snowmobiling	White water rafting, fly-in fishing, flight seeing, overnight pack trips, birding trips and additional spa treatments
Rates, Packages and Marketing
*Range of room rates, person/wk or person/day*	7 nights – 6 days $1260 to $1800 person, depending on season ($180 to $260 per person per night) CDN	From $350 to $525 per person per night, 25 –50% discount for children depending on age	From $144 to $350 per person per night including all activities 50% reduction for children under 12	From $135 to $190 per person per day (doesn’t include activities)	$245 to $290 per person per night
Round-up & Cattle drive Horsemanship wk Pro Rodeo wk Adventure packages Yes 4 nights May, June, Sept, 7 nights July/August	Christmas, New Years and winter rates available 3 nights during summer, 2 nights during balance of year	Winter Getaway, Horseback Safari, Fly-in Fishing Yes, also Modified AP No	Pack Trips Romance Groups Christmas New Years No	3, 4 and 7 night packages, Western experience, Spa, Honeymoon, Family reunions, Corporate retreat, lifestyle alternatives Most guests stay for one week
Markets as identified in promotional material	Designed for families to do things together	No children under 12 unless whole facility booked	Family oriented, pack trips, fly-out fishing, heli-skiing and Snowmobiling	Family oriented, romance, cattle drive, corporate, reunions, school groups	Adult orientated with 13 year minimum except when whole resort is booked
*Where guests from?*			45% short-haul market 40% long-haul international market 5% close-in / 5% US		Mostly long haul US and International
		50% word of mouth 10% Vancouver Sun & Westworld Magazine 20% Web page 5% travel agents 15% off-shore wholesalers		Print article/Web Word of Mouth Travel agent not significant source
*Market forecast*			growing		Steady demand exists
*% direct booking*			80%		Majority – many via internet
*% clients returning guests*			50%		Order of 30 – 40%

3.1.1 Nearby Natural Features

Without exception, these resorts had either large tracts of land in natural condition or were adjacent to large areas of undeveloped wild land:

Almost all resorts either have lakes and rivers on their property or nearby. Commonly these resorts are located in what would be considered very scenic country.

3.1.2 Built Facilities

lodges and cabins are almost always of log construction. Special touches such as original artwork, down comforters, decks/balconies and scenic views are often mentioned in facility descriptions.

3.1.3 Dining & Liquor License

Fine cuisine with renowned chefs is a hallmark of 1st class guest resorts. Only four resorts in this group did not emphasize gourmet meals on their web sites. Many resorts included sample menus to demonstrate the sophistication and breadth of their cuisine. Many resorts promote gourmet specialties as part of their package. Such specialties include:

Most resorts served meals in a dining room, often at one sitting with only one or two of the smaller resorts offering room service. Breakfast and lunch are often served buffet style while dinner is almost always more formal. Lunch is often available outdoors, either as a picnic or on a terrace, patio or deck in a scenic location near the main lodge.

Several resorts have separate dinners for children to ensure a quieter dining experience for the adults.

Almost all resorts have a liquor license and serve wine with their meals. A minority offer full service bars in the evening; in most cases these are the larger resorts.

3.1.4 Guest Capacity

The smaller resorts appeared to cater more to adults, couples and singles while the four largest resorts are all more family orientated.

3.1.5 Activities Offered & Operating Season

Summer Activities

Only four resorts operate just in the summer, the other ten either operate year round or have a summer and winter season. The primary summer activities promoted by these guest resorts almost always include horseback riding, hiking and fishing. However, there are numerous activities that are common to many of these resorts including:

Winter Activities

10 of the resorts offered either year round or winter programs. Cross-country skiing is typically the primary activity but many activities are common to the winter guest resort industry including:

As the resort becomes more established it may be possible to extend the spring and fall shoulder seasons with corporate workshops. Other resorts are doing this successfully.

3.1.6 Unique Activities

To help distinguish themselves in the guest resort market, most resorts try and offer one or more unique/unusual products. These include:

Summer

3.1.7 Crucial Activities & Services

When questioned about which activities and services are crucial to the success of their operation, owners and managers typically said it was a package of top quality service, top accommodations and fine cuisine. A scenic location was also mentioned by operators, as well as having good quality horses. Resorts, who offer a specialty such as spa service or high tech capability, are developing a more specialized clientele and therefore consider these specialties important, if not crucial, to their success.

If there is one thing that stands out, it is that guests have a special sense of belonging, even a sense of family with the owners, managers and staff of the resort. In an anecdotal tale - you can recognize a top quality resort when the resort dogs get sent Christmas cards by the guests.

Of note is the concern that overnight or short stay guests make it more difficult to develop this atmosphere. It is more difficult to develop a longer staying clientele if a resort is dealing with short-stay tour groups on a regular basis.

Hiring and keeping excellent staff is crucial to the operation of a first class guest resort. Many of the top resorts have personal day-to-day involvement by the owners. This hands-on involvement contributes to the sense of family and community for both the staff and the guests and likely increases the chance of success in this competitive marketplace.

Other than horseback riding, the activities offered by individual resorts seemed to be less crucial to resort success. It is apparent that the most successful resorts offer a wide range of activities, usually including hiking, fishing and mountain biking. However none of these activities are crucial as long as a wide range of interesting options are available for guests.

Paying for Activities

Most resorts include all on-site activities and meals in their package price. Two resorts charge extra for almost all activities.

Most resorts have off-site or specially arranged activities, often with other service providers, which they charge extra for. Some examples of these include:

Cattle drives, pack trips, hunting, fishing and snowmobile guides, guided rafting & kayaking, off-site sightseeing tours, flight-seeing, charter sail & cruising boats, golfing & tennis, downhill skiing, balloon rides, dog sledding, baby sitting service, ice climbing and rock climbing, pro rodeos, professional entertainers and naturalists

Some resorts include a sampling of activities within their package prices and then charge extra if guests wish to participate further in those activities. For example:

3.1.8 Rates, Packages & Marketing

Range of Daily & Weekly Rates

A wide range of rates exists from a minimum of $144 CDN per night at Tyax Mountain Lake Lodge in BC to $700 US at Big EZ Lodge in Montana. However, there are some groupings of rates:

Summer rates

Winter rates

Winter rates typically are somewhat lower than summer, likely reflecting the lower number of activities available. Generally rates run from $40 to $70 per day lower than summer rates. The exception to this is the Alisal Resort, which can offer similar activities summer and winter due to the California climate.

Minimum Stay

Five resorts have a one-week minimum stay during the summer; two other resorts encourage one-week stays but have 3 and 5 night packages available. Three resorts have a 2 or 3 night minimum stay while three resorts have no minimum stay.

Seven resorts have minimum stays in the winter but typically they are much shorter, usually two or three nights with just one resort having a 5-day minimum stay over the Christmas/New Years period.

As a resort establishes a base of returning clients, there is a trend towards longer minimum stays.

Typical Packages

Various resorts offer a range of packages. The most common packages are those near the top of the following list:

Guest Characteristics

3.2 Local Supply Analysis

The Hazelton area is presently undersupplied by accommodation options. There are at present three hotels in the area (28 Inn, Bulkley Valley Motel & Cataline Motel & RV Park) offering a total of sixty 0ne (61) accommodation unites and three B&B’s providing about seven (7) units. In addition, there are a number of mid to back-country lodges, mostly focussing on the destination Steelhead fishing market:

3.3 Market Demand Analysis

3.3.1 Overview

With the exception of specialized sport fishing lodges, there is an overall lack of destination lodge accommodation in the Northwest region of British Columbia. In order to effectively position a destination resort, it must offer deluxe accommodation, gourmet cuisine and outstanding, consistent service. A spa is an additional facility, which is believed to have a high level of interest among travel markets.

US and international travel markets associate the resort experience with travel in Canada. But winter resort vacations in the region will be difficult to market first, because of a lack of developed product, and second because the lack of awareness in the marketplace – most international markets are only interested in Whistler or the Rockies for winter vacations.

3.3.2 The Travel Sector à Post 9/11

Adventure Travel

There is little doubt that the tragedy of September 11^th, 2001 in New York City had an immediate and traumatic impact on the travel and tourism sector. However, according to a survey in the December issue of Outside Magazine [6] , American adventure travelers seem determined to continue to travel. The Outside survey indicates cancellations in the aftermath of the attacks as a comparatively low 10%. Outside asked leading adventure outfitters to gauge the state of the industry and overall, the high return rate of adventure trips indicated a quick return to normal for the industry. Outside reports that adventure travel is poised to continue the steady 6% per annum growth the market has seen for the last three years. Only the destinations have changed, not the desire.

Adventure travel companies may be showing some resilience during the slump in long-haul travel because they sell a wide range of destinations and their tour participants are by nature intrepid travelers, more comfortable with the element of risk.

Operators contacted by Travel Weekly say aficionados of adventure travel and its close relatives (active travel, exotic travel, ecotravel and cultural travel) tend to be more experienced travelers, with a more realistic perception of danger than the novice traveler. Some operators are seeing the more general trend of travelers seeking destinations that are closer to home. Backroads North America programs have received renewed interest as domestic bookings have become more attractive. “Last year, about 20% of our bookings were for North America; for next year North America is 45%”.

A February 2002 poll of more than 2,600 “active travelers”, commissioned by Outside Online and Away.com [7] , showed that 85% are planning to travel as much or more in 2002 as they did last year. And while 60% say they’re more inclined to stay in North America, only 8% say they’re less likely to fly. By contract, a recent USA Today/CNN/Gallup Poll of the general American public reported that 44% of travelers are “somewhat” of “very” afraid to fly.

North America Motor Coach Bookings On Increase

The long-standing belief that there's safety in numbers appears to be serving motorcoach tour operators well in the post-Sept. 11 world. Several tour operators contacted by Canadian Travel Press say their motorcoach programs are selling well, with a belief that they’re a secure way of seeing the world helping boost sales [8] .

“I think people like the idea of travelling in a group,” says John Hamilton, vice-president of marketing for the Canadian division of The Travel Corporation, parent company of Insight Vacations, Trafalgar Tours, Contiki and AAT Kings tours.

Rose Swagemakers, director of sales and marketing for Horizon Holidays, is quoted as saying: “We always feel there’s a need for escorted travel and I think after Sept. 11 people are more interested in travelling in a group”. Horizon has made adjustments to its program, however, with the company once having a program that saw 70 per cent of its tours take people outside the country. Now, 70 per cent are within Canada, with Atlantic provinces itineraries strong sellers.

“Motorcoaches are perceived as a pretty safe way to go,” concurs Robert Van Kleek, president of London, Ont.-based Pathway Tours. “I don’t think people want stress on a vacation.”

Antonella Santia, reservations office manager for Globus and Cosmos, says bookings have “definitely picked up.” Over 90 per cent of Globus and Cosmos tours are motorcoach itineraries.

And Van Kleek predicts motorcoach tours have a bright future as the vehicles used have become “state of the art.” Van Kleek says when he entered the business in the mid-1960s motorcoaches didn’t have air-conditioning or bathrooms. Now, passengers can find themselves travelling in climate-controlled vehicles that have comfortable seating and videos.

Hamilton predicts as our population ages, more will opt for motorcoach travel, with The Travel Corporation clients tending to be between 50 and 55 years old. That figure is probably true of other motorcoach company clienteles, he continues. “I think demographics are on our side,” Hamilton says, adding baby boomers are becoming motorcoach travellers.

3.3.3 Group Travellers

In order to gain a more comprehensive understanding of the potential for major tour wholesalers to be attracted to a new destination resort in the Hazelton area, a telephone survey of sixteen (16) key travel influencers was undertaken [9] . During this interview process, several important points became evident:

To follow in the next table, are the complete results of the travel influencer telephone survey (Table 3‑4 ):

Operator à	Tauck World Discoveries	Jonview	Great Canadian Rail Tours Ltd.	Butterfield & Robinson
*Contact Person*	Phil Otterson, VP Operations	Bill Knowlton, VP Sales and Marketing	Ian Lock, Product Manager	Claire Reyes, Media Relations
*Type of Business*	Deluxe, escorted tours	Receptive tour operator-Canada's Largest	Operators of Rocky Mountaineer Railtours, a two-day railtour operating between Vancouver and the Canadian Rockies, with an overnight in hotel accommodation in the Kamloops region. Offers two levels of service, Red Leaf and Gold Leaf. Gold Leaf is the upmarket brand and provides a dome car, dining car and outdoor observation deck.	Luxury operator of biking and hiking group programs around the world.
*Client Mix*	Mainly couples, singles or women travelling together	Clients range from couples, singles and families and are 2 star to 5 star purchasers; in the upmarket segment, price is not really a problem	In Gold Leaf service more couples, ladies travelling together, singles and friends together. Sometimes families.	Affluent, some celebrities, some families but mostly couples and singles, 35-65
*Location*	Westport, CT.	Toronto	Vancouver	Toronto
*Primary Markets*	U.S., UK	Primary markets: UK, Germany, Switzerland, Italy, France, Mexico, Brazil; Secondary markets: US, Asia Pacific;	US, UK, Australia, Canada	US - 90%; 10% Canadian, remainder Australia & Brazil.
*Most Popular Destination Sold*	Canadian Rockies, US	Canadian Rockies, Eastern Canada	Rockies, Vancouver	Europe -France/Italy, Morocco (pre Sept. 11); South America; more interest in NA since Sept. 11. Have introduced new programs to Canada in 2002
*Currently Sells Ranches & Luxury Resorts*	Yes, as part of package itinerary	Yes	Yes, mainly Rockies	Yes
*If yes, Which Ones in Canada*	Sun Peaks, Whistler, Jasper Park Lodge, South Thompson Guest Ranch	Wickaninnish Inn, Echo Valley, Carlton Trail Guest Ranch (Saskatchewan), Jasper Park Lodge, Chateau Whistler, Westin Whistler	Jasper Park Lodge, Rockies Resorts, Whistler	Wickaninnish Inn, Echo Valley
*Most Popular Ranch/Resort that they sell*	Jasper Park Lodge	Jasper Park Lodge, Chateau Whistler	Jasper Park Lodge, Banff Springs Hotel	Wickaninnish Inn - because of the hotel itself and everything about the property, the service, etc.
*Average Stay*	1-2 nights (1 night Whistler, Sun Peaks or South Thompson; 2 nights in Jasper; they operate daily motor coaches through the Kamloops region between May - Sept	1-2 nights for resorts; 3 - 7 nights for ranches	1-2 nights (only in cities and Canadian Rockies)	2 - 3 nights
*Facilities Required*	High end accommodation, easy access from highway, no detours, excellent dining, scenic location. Not much else required as just an overnight.	Trail riding, luxury at the end of the day, hot tub and massage, gourmet cuisine. Consistent approach to market. Should look at 50 rooms instead of 35 to handle mix of FIT and group.	To use the facility would have to be upmarket to cater to the Gold Leaf client and would have to have more rooms and be an exceptional facility to make it worth the operational issues that they would have to deal with to handle the transfers.	Most importantly, property must be understated elegance or can be a bit homey but service has to be outstanding and cuisine has to be exceptional. As well, there has to be an excellent range of activities such as trail riding, hiking trails, cultural activities. A spa would be a bonus. They prefer inns that have an ambience that is exclusive and makes the clients feel privileged to be there.

Operator à	International Conference Services	Spectacular Adventures	Off The Beaten Path	Virtuoso Travel Specialists
*Contact Person*	Franziska Kaltenegger, President	Peter Lloyd-Jones, Owner & Jayne Lloyd-Jones- Owner/PR specialists	Did not get name	Mike Emberg
*Type of Business*	Meeting and Conference Planner; handles pre and post extension programs as well; conference sizes range from 20 - 1000.	Representation/Marketing Company for Resorts-currently represents King Pacific Lodge, Echo Valley, Pacific Sands, Ruby Lake on the Sunshine Coast; does PR for Delta Sun Peaks	Custom travel & scheduled guided Journeys. Offers driving itineraries, clients looking for upscale experience.	Travel Agency group representing 350 plus agencies in the U.S and Latin America 92 in Canada-Vancouver & Toronto), specializes in high end and luxury travel. They currently have the Chateau Whistler, Jasper Park Lodge, King Pacific Lodge as preferred properties and would be exploring adding new resorts/ranches, etc.
*Client Mix*	For conferences between June to Sept. does have a lot of delegates that bring their families. Have done many extension programs with Wickaninnish with families.	Couples but has seen a growth in families as long as the facility caters to families. For example, Echo Valley only wants 13 years or older which turns off some clients. King Pacific on the other hand has been welcoming families with children, but because it is so expensive is only catering to very well-off families.	50% families/50% couples	Mainly couples, but growth in families
*Location*	Vancouver	Vancouver	Bozeman, MT	Seattle, WA
*Primary Markets*	US, Canada, International (UK, Germany, Australia, India)	Markets range per product they represent. King Pacific is almost exclusively US as their prices are so high and their business comes from Virtuoso Travel Agencies, corporate clients, direct clients and other travel agents selling exclusive products. This property is a marketing partner with Virtuoso Travel Specialists and is also part of the Relais & Chateau group, so gets business through this chain. Echo Valley is getting a lot of business from Europe as well as regional. Has trouble selling during the winter months and also has difficulty getting longer stays. Also accessibility is an issue.	US; east coast west	For Canada, the majority of their business goes to Western Canada with the Rockies, Vancouver, Whistler and Vancouver Island being very strong. They do have clients that drive between Vancouver and the Rockies, as well as custom high-end groups, and many that take the Rocky Mountaineer.
*Most Popular Destination Sold*	Alberta, Whistler and Victoria; Also big sellers are the Rocky Mountaineer, and Alaska Cruises	King Pacific Lodge as they handle the sales and reservations for this lodge.	Yellowstone	Cruises - top producers for Holland America, Seabourn, etc.
*Currently Sells Ranches & Luxury Resorts*	Yes	Yes	Yes, says they are very popular still, but more interested in ranch resorts, and facilities that cater to children, rather than just a pure resort	Yes
Operator à	International Conference Services	Spectacular Adventures	Off The Beaten Path	Virtuoso Travel Specialists
*If yes, Which Ones in Canada*	Wickaninnish Inn, Chilko Ranch but is too far to access so hard sell. Echo Valley is too hard to get to so don’t sell. Wickaninnish Inn – selling for pre/post conference 5 – 6 bookings out of conferences of 1000. Whistler is also selling.	King Pacific Lodge and Echo Valley Guest Ranch in BC.	Echo Valley, CMH, Post Hotel, Three Bars	King Pacific Lodge, Wickaninnish Inn, Echo Valley
*Most Popular Ranch/Resort that they sell*	Whistler	King Pacific Lodge as they handle the sales and reservations for this lodge.	Mountain Sky	Can’t say, but in Canada Chateau Whistler and Westin Whistler would be largest sellers, also a lot of interest in King Pacific Lodge and Wickaninnish Inn, Sooke Harbour House, Aerie, Hastings House, primarily because Relais & Chateau and Rosewood are members and some of these resorts are part of these organizations.
*Average Stay*	2 – 3 nights	US market hard to get longer than 3-4 nights. European market longer but will not spend the money in a luxury ranch for a 5 or 7 night duration.	2-3 nights at resorts;5-7 nights for ranch stays, but for Canada never gets asked for ranch stays, but would incorporate a ranch/resort in a driving itinerary	Varies but 2 – 5 nights generally. Most common is 3 nights
*Facilities Required*	Spa with exercise facilities, pool, hot tub, gourmet cuisine, luxury accommodation, day excursions to wine country, golfing at Predator Ridge, activities such as hiking and trail riding. As her clients would usually not have a car, there would need to be transportation available to transport them to the activities.	From their experience, the Spa aspect of the ranch or resort is starting to be a critical requirement for their clients, along with Gourmet cuisine and exceptional accommodation. Other activities are necessary, but not one stands out over the other. However, without the spa and great dining, as well as exceptional accommodation, the affluent crowd won’t find this appealing.	Higher end food, gourmet dining a requirement, activities for children, quality services a must. The property must have an ambiance, authenticity, not sticking out like a sore thumb, must fit in well with the setting, i.e. “not a Hilton in the middle of a ranch property”. Felt that spa facilities was not essential for overnight clients but for longer stays would be a nice addition. For children, a pool would be a requirement. Though most clients will dine in the restaurant, having a kitchenette would be an advantage for families with children. Questioned whether the mix of transient visitors (i.e. groups) would conflict with a longer stay guest looking for a ranch/resort retreat.	Needs luxury accommodation, gourmet food, activities, well-appointed spa, and limousines for airport transfers or floatplane docks and assistance with luggage to check-in. Needs guests to feel pampered. Would be easier sell if branded with Relais & Chateau or Rosewood, as both are members of Virtuoso and are exclusive for boutique facilities, so elevates the level of acceptance very quickly.

Operator à	Fresh Tracks	Art of Travel	Intrawest – Extraordinary Escapes	Princess Tours
*Contact Person*	Carol Raymaker	Margot Deh	Jeff Tisdal	Mark Alfano, Product Manager
*Type of Business*	Direct sell tour operator catering to 4 star clientele and selling customized vacations in Canada, primarily secured through referrals and on-line marketing.	High End Travel Agency specializing in luxury vacations in Australia and North America, Indian Ocean	Resort Ownership Club; offer locations in Canada and U.S.; has division called Extraordinary Escapes and members can redeem club points or club points & cash to purchase luxury vacations. They generally go after boutique chains such as Relais & Chateau, Preferred Hotels, Small Luxury Hotels of the World, etc. for inclusion in the program. Currently no cost to be a part of the program, except provide net rates. But must be referred by either Intrawest staff or members for inclusion and be at least 4star rated. In the Vacation ownership arena they are considered the boutique player versus Four Seasons and Marriott. They do aggressive direct marketing for new members through telemarketing and inviting potential members to come and experience Club Intrawest properties.	Tour operator with ground programs sold in conjunction with Princess Cruise Lines sailings
*Client Mix*	Couples and families	Mostly couples 30 - 60 years	Member demographics; couples (30 years +) and families - have found that families make up a big par of their members; target new members with income of at least $75,000 US + (or $75,000 Cdn+);	Mainly couples, singles or women travelling together
*Location*	Vancouver	Munich, Germany	Vancouver	Seattle, WA
*Primary Markets*	US - all over. Clients accessed through Internet marketing; see vacation packages on-line; call off-line to book.	Southern Germany	Currently has 11,000 members as follows: 3500-4000 PNW (split 50/50 Lower Mainland and Seattle); 2000 California, 2000 Ontario, 2000 Quebec, 200 UK, 50- Germany, and the remainder split between 37 different countries and 30-40 different US states. All business is direct from members not through retail agencies.	US
*Most Popular Destination Sold*	West Coast Vancouver Island	Mainly sun destination currently, North America very slow after 9/11; Indian Ocean their most popular destination so far this year.	Whistler and Tremblant due to Club Intrawest Locations	Alaska, Canadian Rockies
*Currently Sells Ranches & Luxury Resorts*	Yes	Yes	Yes, as part of the Extraordinary Escapes program, as well as Club Intrawest Resorts	Yes
*If yes, Which Ones in Canada*	Echo Valley, Wickaninnish Inn, Clayoquot Wilderness Resort	Echo Valley, Wickininnish Inn, Jasper Park Lodge; could not recall any in US that they sell	Club Intrawest resorts in Whistler, Panorama, Tremblant, Kauai, Florida, and a few more south; Extraordinary Escapes in Western Canada includes Wickaninnish Inn, Aerie, Manteo Resort, Clayoquot Wilderness Resort, Vancouver (at Sheraton Wall Centre) Sun Peaks (through a small management company), Post Hotel, Sonora Lodge and Golf Cottages at Predator Ridge. Has a total of 100 companies as part of Extraordinary Escapes and segments into Resort Retreats, Urban Travel, Excursions & Adventures (includes cruises, mountain top Yurts and could include Ranches). They currently do not have any ranch in the program.	Alaska Resorts in conjunction with cruises; in BC: South Thompson, Sun Peaks, Jasper Park Lodge, Delta Whistler
*Most Popular Ranch/Resort that they sell*	Clayoquot Wilderness Resort; primarily because it is packaged with multiple activities. Said that when they promote the property stand-alone they have trouble selling as the client will try to book directly. Does sell Echo Valley but wraps this with transfers and other activities.	Likes Echo Valley as has stayed there.	Didn't know other than Whistler	Didn't know other than Fairmont properties
*Average Stay*	2-5 nights	Echo Valley - 4- 7 nights; 2 -3 nights at other locations	2-3 nights	1 night stays only for resorts outside of Rockies
*Facilities Required*	Luxury, activities, gourmet cuisine, spa nice to have, taste of wilderness with unique activities, floatplane,etc.	Dining must be excellent, spa not as necessary, trail riding a must for a ranch. Likes Echo Valley so quality must be at least this level.	Cuisine, spa, luxury rooms, outstanding service	Says that for them they only need deluxe accommodation & would prefer all rooms in one lodge building and excellent cuisine and service. For a one night stay other facilities not as necessary. Their frequency is at least 3-4 times per week through the Kamloops region. Said that they might be able to move one popular tour series from Sun Peaks to this ranch/resort, but probably would need to have 50 rooms at the facility so they could have two series through there but would then book up all of the rooms

In order to best review the potential market demand for a resort product, we have separated the needs by travel influencer segment:

Escorted Tours

Many companies currently spend one to two nights in the Northwest region (three including Prince George), staying for necessity as the timing of the driving route between the Canadian Rockies and Prince Rupert makes this a 2 – 3 day excursion. They will not expand their stay in the region as there are “icon” products at either end, Alaska and the Rockies. Operators offering deluxe tours would only consider moving their regional (i.e. Smithers) overnight business to a resort if it contained more than 35 rooms, and had the facilities to cater to groups. Tour group preferences are for the same room type, within a main lodge. This group is not going to make use of any of the resort facilities other than food services, therefore they are not as concerned as to whether the resort has a spa, interpreted activities or outdoor activities. During the period of May – September, groups could be booked daily, but they will only sleep and eat at the resort and there would be a nightly turnover. The value they place on the resort will be for accommodation only, so they will be looking for competitive rates with accommodation in Smithers and Terrace. This would mean that the resort would have to offer a rate no higher than $130.00 CDN. per room, per night, - double occupancy - to be acceptable to these tour operators.

However, should the lodge/resort be built on Anderson Flats, and a footbridge built across the Bulkley River to the ‘Ksan interpretive site – the likelihood of attracting escorted tours would be greatly enhanced.

3.3.4 Unique Groups

Incentive & Conference Planners

This segment tends to only operate programs in their region. Therefore, Vancouver and Northwest BC regional-based planners would best sell the resort. The Vancouver-based companies tend to operate programs that stay in well-known locations such as Vancouver, Victoria, Whistler, and Tofino with the latter three often combined with Vancouver. Only on occasion do they offer programs that extend beyond these destinations. Group sizes can range from 15 – 1000 persons. This sector also offers Pre & Post programs catering to the individual travellers as add-ons to the conference or incentive, but only a small percentage of attendees purchase the extensions and more often tends to be the overseas clients. Resort stays can range from 2 – 4 nights, dependent on the client and program. Combining Vancouver with a resort in the Northwest has only limited appeal, with more interest for European incentives than U.S. This sector recognizes the value of the high end product and would be attracted to the nature and First Nations themes. The lack of motor coaches in the immediate area would be a problem as group transfers are common. A Spa with exercise facilities, massage treatments, hot tub and pool are attractive for this group.

Tour Operators Offering Up Market / Interpretive Escorted Tours

These operators offer scheduled tour itineraries that move to multiple destinations – with their tours designed to allow them to introduce their clients to learning or enriching experiences. In the case of a resort in the Northwest, there would be value in learning and interpretive programs, including Gitxsan First Nations. This group would use the restaurant facilities but not much else except those activities available to be undertaken as a group, e.g. a salmon BBQ and visit to ‘Ksan. This market segment tends to be in the 55+ demographic group therefore activities do not need to be active. This sector is willing to pay more for the accommodation than the traditional escorted tour operators. Rates of up to $250 Cdn. per room, per night are not uncommon. The selection of accommodation is often based on the experience the facility can provide versus just the accommodation facilities.

Active Tours

Active tours consist of deluxe clientele who would be willing to spend 2-3 days in an upscale resort in combination with several other destinations. The level of activities available must be suited to groups and offer a memorable experience. Group demographics are broad and tend to range from 30 – 65 years, but certainly cater to a more active traveller. A resort would be expected to offer a variety of outdoor and interpretive activities, with the potential for excursions such as golfing, bird watching and First Nation interpretation of interest. Service and cuisine must be exceptional and the accommodation deluxe. This group wants to be active during the day and at night be able to luxuriate in the comfort of the resort, enjoy a spa treatment, gourmet cuisine, a great bottle of wine and then a good sleep in preparation for the next day’s learning adventure.

Specialty Groups

This growing market consists of those who plan specialty arrangements and seminars on an ad-hoc basis, including retreat weekends focused on a specific theme, health & wellness, cooking classes, art classes, photography classes, etc. They would tend to book a 2 to 3 night stay and depending on the theme and the proprietor could draw from long-haul market as well as regional markets. This sector also has the ability to push business into the shoulder seasons and often prefer this time period due to more attractive rates and less crowded activities. Additionally, weddings could be promoted to wedding planners in the local and regional markets who cater to more affluent wedding arrangements; however, these will tend to focus more on high season periods as well as weekends.

3.3.5 Independent Travel Influencers

Fly-Drive Packages

This type of package is generally sold to clients from long haul markets in the US and Canada, as well as overseas. The traveller would generally pre-book their vacation months in advance, fly into Calgary or Vancouver, pick-up a rental car and follow a pre-planned itinerary developed by a tour operator. Therefore, most itineraries would suggest only one night in the Hazelton area since the destination is not known as an “icon”. Some travel influencers offer flexible itineraries so the client may request a longer stay in a location, however this needs to be at the request of the client and booked in advance. And, since the client will not necessarily know the lodge/resort in advance, the likelihood of their requesting a longer stay is quite small. However, tour operators will consider including 2 nights at a lodge or resort if the activity base is of interest to their market. The planning cycle for the development of the itineraries can be up to 18 months in advance therefore the resort would need to have firmed up their activities offerings way in advance. If promoted as a deluxe package, this clientele would expect a deluxe resort with gourmet cuisine, spa facilities and trail riding at a minimum. If they were staying more than one night, the level of activities offered would be of greater importance in their enjoyment of the facility.

Resort Stay Packages

Those surveyed that sold resort stay vacations felt that the lodge would be best positioned as a resort with a historical/cultural atmosphere. Additionally, the resort should be promoted as an all-inclusive cultural activity package with some optional activities still available for add-on (as well as spa treatments, if available). All meals could be included but there may be the opportunity to have surcharges for certain menu items. All beverages would be at additional cost. They felt that the upscale client would pay top dollar for a luxury, all-inclusive experience. The consistent statement was that the client would want everything – high quality service, gourmet cuisine, spa, activities, deluxe accommodation and importantly, they would not want to see tour buses coming in and out of the resort as it would detract from the ambience.

Longer term for long-haul markets, this group commented that having a known brand such as Rosewood or Relais & Chateau would be of great assistance in helping them sell the resort. A few commented that they do have a growth in affluent families booking vacations and therefore activities for families have to be available. As well, if some units offered kitchenettes, this would be popular with families. The only tour operators that have volume business to resorts (other than Whistler) and ranches are the regional travel influencers who have their biggest market from the Pacific Northwest. Also the comment was that their largest competition was direct bookings by the consumer or travel agents directly to the lodge or resort, again mostly from the Pacific Northwest. The next largest base of business was from California, Texas, Toronto and Alberta. The amount of business from other regions in the U.S. and overseas was quite small in comparison.

3.3.6 Market Selection

The value of escorted tour groups for a resort is limited as this sector requires low room rates and would have a nightly turnover – thus increasing cleaning costs and wear and tear on the resort. They would require at least 50 rooms and would change the ambience of the facility as they would often move about as a group in the public areas. They would demand limited use of the resort facilities. Therefore, this is a market segment that is not the best fit for a potential Hazelton resort. In addition, the resort will be a hard sell as a long-stay property.

Therefore, we believe that a Hazelton resort needs to focus on 2 –3 nights stays and the markets that would be attracted to this duration of experience. Historically, the primary market would be the Pacific Northwest as well as California, Toronto and Alberta. It is important to note that most of the regional business will book directly with the resort, as historically the local market does not buy through an intermediary. Tour operators that do promote the resort are more likely to sell packages with transportation built in; either by floatplane or rental car and the majority of their market will be from outside the Pacific Northwest.

We believe that the market segments that are best suited for the Hazelton Resort are the independent traveller on fly-drive tours, independent resort stay clients, small incentive groups and specialty groups and active tour groups. These sectors can stay 2 – 4 nights, will spend the money for an exceptional experience, will make the most use of the resort facilities and have the best opportunity to provide a positive word of mouth about the resort experience in Hazelton. Thus the lodge/resort needs to ensure that the needs of this segment are considered in the resort development. Additionally, there appears to be very little interest in a winter facility, we therefore suggest that this is a seasonal lodge/resort, such as May to October.

Site plans differ widely according to the project topography and environment. Different settings and environments require different analyses of the physical limitations and opportunities presented by the site. Site planning for a resort involves incorporating various land uses into the natural environment to create a high-quality setting that will attract visitors. The physical attributes of the setting define the project, but the quality of the buildings and how they are integrated with the setting (i.e. landscaping) are critical in determining the overall character of the resort.

The primary objective is to create a sense of place through the careful elaboration of the style or theme that builds on the uniqueness of the area. This can be done through design, but the surrounding features such as archaeological and historical sites can also add to sense of place. The ability to explore the surrounding landscape for viewing or recreation purposes can reinforce a visitor’s perception of sense of place.

On a more practical note, the feasibility of resort planning is also closely linked to direct cost factors such as road access, access to municipal services and proximity to amenities and services. Maximizing proximity to services and amenities reduces costs – if this can be done without unduly compromising either the sense of place or the natural experience many visitors to the Northwest expect, then the chances of attracting the investment needed for a quality development will be that much better.

4.1 Site Review

Three sites have been evaluated on a preliminary basis as being suitable for a resort-type development. There are undoubtedly other properties which could be suitable for tourism/recreation development, but these were selected based on their ability to satisfy the lack of quality accommodation in Hazelton and to create synergies with ‘Ksan and the town itself as a destination of interest to visitors. The sites are reviewed in Table 4‑1 and briefly discussed below:

4.1.1 Anderson Flats – Site 1

4.1.2 Hummingbird – Site 2

4.1.3 Hospital Lake – Site 3

The Village of Hazelton also has about seven acres bordering on Hospital Lake close to town. Hospital Lake is a small northern fresh water lake and itself would not be a major attractant for guests. However, the fact it exists in a forested area, away from any direct views of the neighbouring residential area is a bonus. Municipal services could be brought in from the residential development. There are trails to town that could be used in either summer or winter, although there may be some conflict with resident use. Although this site is attractive simply because lakeside property of any type is difficult to come by for tourism development, some drawbacks have to be recognized. The site is about two miles from town and ‘Ksan so motorized transport would have to be used. This puts it at a competitive disadvantage to the Anderson Flats site where no such needs exist. A possible conflict between commercial traffic and residential traffic and safety would also have to be addressed.

4.1.4 Summary

The preferred site based on a preliminary review is at Anderson Flats primarily because of its quality blend of riverfront access and relative proximity to ‘Ksan and Hazelton. For the resort to be feasible, however, some hurdles would have to be cleared, including obtaining the requisite LRC and KSRD approvals for using ALR land and construction of a walking bridge across the Bulkley River. If these could be resolved, then the site has the ability to be a very special resort attraction, perhaps unrivalled in the Northwest.

Site à

Site 1

Anderson Flats

Site 2

Behind Hummingbird

Site 3

Hospital Lake

Ownership

Village of Hazelton

Some private – for sale

Some Crown Land (L&WBC)

Village of Hazelton

Size of Property

15 – 20 acres

Approx. 70 acres private land across road for sale

About 200 acres for sale

Subdivision required

About 7 acres on lakeshore

Surrounded by forested crown land

Zoning

Kitimat/Stikine Regional District classifies as agricultural

ALR

Village of Hazelton

Presently zoned for a trailer park

Village of Hazelton

Zoning ‘may’ be an issue as local residential neighbourhood are on 2 acre lots

Municipal Services

Near town waste treatment plant

Water, power & sewer available

Water would have to be sourced from Southtown

Water, power & sewer available from main road

Water, power & sewer available from nearby residential neighbourhood

Access

Access road located behind The Garage Pub & Grill (2 – 3 Kilometres)

Good quality, well treed country road directly to site

Crosses railway tracks at unregulated crossing

Access via Wiggins Way road

No direct access at present

Property sandwiched between the Hummingbird Restaurant and a large ridge

From Swannel Road access road to end of dead-end street

No direct road access to site itself

Access through a residential neighbourhood

Viewscapes

360 degree viewscapes

Ksan directly across Bulkley River

Mount Rocher DeBoule dominates western view

Good views of mountains to the East & West

Limited due to large ridge between site & Mount Rocher DeBoule

Views of houses, High School & Hummingbird

Some mountain views

Views very limited overall

Small but clean lake with surrounding forests

May be somewhat limited due to heavy undergrowth and large trees

Proximity to Recreational Water

River frontage on Bulkley River

Rough boat launch in place

Excellent opportunity for river side walking trails & fishing opportunities

Higher land parcel without any direct access to either rivers or lakes

Lakeshore property

Small lake suitable for swimming & float craft

Limited fishing due to size of lake

Distance to Old Town

By road – must drive from Southtown around to Old Town

Potential for easy walking access to Old Town if foot bridge developed

Foot paths exist from the High School to Old Town

Site is a long walk to town

Vehicle use recommended

Long walk to town

In winter, trails are used by snowmobiles

No set cross country tracks at this time

Limiting Factors

Footbridge across Bulkley River essential for linkage to Old Town

Costs and liability issues of footbridge may be prohibitive

Flood plain bordering the Bulkley

Waste treatment plant is located in same area

Hydro lines crossing the river (minor visual impact)

Front country oriented

Limited viewscapes

Borders on a neighbourhood & commercial development

Site may have afternoon shade due to large ridge bordering property

Access road required

Municipal services required

Not within walking distance of town - vehicle required

Possible access conflicts with nearby neighbourhood

5.1.2 Food and Miscellaneous Revenues

Food sales are expected to generate a relatively modest $39,000 in the first year of operation, rising to $97,000 by Year 5. Sales projections are based on a per day average of $39.50 which is not expected to change over the five year period. This includes expenditures for all three meals and factors in beverage sales as well. Other key assumptions include an industry-standard 1.25 guests per room and a capture rate of 75% of room guests, as some guests will be expected to dine at competing establishments. The capture rate will increase to 95% by Year 5 as the resort will cater increasingly to destination-oriented tourists who will expect to dine within the lodge/resort facility. There will be food sales to non-residents as well, amounting to 10% of in-house sales.

A capacity check of food service requirements in Year 5 shows approximately 26 people present for breakfast, lunch and dinner. The need to seat more or less will change depending on the circumstances encountered. Table turnover would lower the needed seating, while special events such as seminars or weddings may increase it.

Miscellaneous revenues will be generating through equipment rental, telephones and commissions for outdoor and interpretive activities provided to guests by partnering operators. This will amount to five percent of total sales.

5.2 Capital Costs

For construction costs, we have estimated a building size of 10,000 square feet with gross building costs of $110 per foot, including site preparation, site work, professional fees and insurance.[13] The resort would average 250 square feet for 20 rooms, with ample room for reception, dining and meeting areas. In lieu of meeting rooms, there would be enough room in this footprint to accommodate a 75 seat public house, although we have not accounted for such a facility in either the cost or revenue estimates. Costs assume a handcrafted log home style. The price of land would be approximately $40,000, assuming a 10 acre facility.

An estimated $130,000 of working capital would be required to carry the resort through its early years of operation. This would cover supplies and inventory investments of about $15,000, accounts receivable and cash reserves.

Table 5‑2: Estimated Project Construction Costs[14]

Land	$40,000
Building[15]	$1,100,000
Equipment and furnishings[16]	$107,000
Contingency (10%)	$62,350
Project Development Costs	$1,309,350
Working Capital	$130,000
Total Capital Costs	$1,439,350

5.3 Cost of Sales and Operating Expenses

Cost of sales and operating expense estimates for the resort are shown in Table 5‑1. Cost of sales in Year 1 through to Year 5 is based on a review of North American[17] and BC[18] industry average cost of sales for hotels and resorts of 47%, which accounts for all departmental expenses, including room, restaurant, telephone and miscellaneous. This yields gross profit of $77,481 in Year 1 and $130,653 by Year 5.

Operating expenses are also based on industry averages for administrative, marketing, utility, property operations (i.e. repair and maintenance) and insurance charges. Collectively, these account items amount to 27% of total facility revenues. The manager’s salary is well below the industry average, but it is assumed that this position is either filled by an owner/operator or by a part-time manager. The $30,000 initial salary would rise to $38,000 by Year 5 as the facility began generating positive cash flows.

Interest charges assume that long-term debt for one half the capital cost in the amount of $654,675 would be secured, implying a debt-equity ration of 1:1. Amortization is over 10 years, with an interest rate of eight percent. No assumptions are made as to the source of the other half of the financing, but this is most likely to come from a prospective owner. While a higher debt portion is possible, the low level of profitability in the BC hotel/resort industry (outside of Vancouver, Victoria and Whistler) over the last 20 years suggests that a highly leveraged operation would have difficulty breaking even over a five year period, even assuming record low interest rates.

The profit and loss analysis indicates that the resort could generate a positive cash flow by the fourth year of operation once interest obligations are paid down. The cumulative cash loss after Year 3 is $121,251. This would have to be financed out of working capital reserves, which we have factored into our capital cost estimates. By the fifth year of operation, a $23,000 net cash flow would be realized and the operation would be on a solid financial footing.

Breakeven for the resort occurs approximately half way through the fourth year as interest payments decline sharply and allow more cash to be directed into operations and away from financing.

5.4 Sensitivities

The projections are sensitive to numerous revenue and cost variables, as shown in Table 5‑3. On the revenue side, gross profits and earnings are most sensitive to RevPAR. Adjusting either room rates or occupancy estimates up or down 10% affects cash flow accordingly, but it does not greatly change the breakeven period (i.e. attained in the fourth year). Similar effects are seen when cost of sales are adjusted up or down 10%. However, a higher cost of sales (e.g. 52% instead of 47%) would delay breakeven until early in the fifth year. The single-most important cost item in the first three years are interest charges. While cash flow is moderately sensitive to interest rates, the key factor is the amount of debt carried. Increasing long-term debt to 75% of total capital requirements will delay breakeven to the sixth year of operation. By reducing debt to 25% of the total, breakeven is attained in Year 2.

Table 5‑3: Sensitivity Estimates

⁶^{Appendix
1 – Tourism Resources}

6.1 Education and Training Resources

The BC Tourism Education Programs Directory last published by the Pacific Rim Institute of Tourism (PRIT) in 1998 provides an overview of tourism education and training programs offered by private and public institutions in the province of BC. While PRIT folded in early 2001, the directory can be found at some community libraries in the province. Discussions are now underway for the Council of Tourism Associations (COTA) to take possession of PRIT’s resource library at which time an updated directory may be published. In the meantime, the 1998 directory remains the single best guide to education and training resources available to the tourism industry and workforce.

6.1.1 Professional Certification

There is no single set of national or provincial standards of certification either for tourism or outdoor adventure tourism positions. The following are suggested starting points for local certification of operators and guides:

The Canadian Tourism Human Resource Council (CTHRC) administers certification of the National Occupational Standards for the tourism industry and they work with provincial agencies for delivery of programs and services. At the time of writing of this report, the designated agency in BC, the Pacific Rim Institute of Tourism, had closed its doors. Their educational and training programs are now being handled by the Hospitality Industry Education Advisory Committee (HIEAC).[19] Standards exist for 42 tourism occupations, many of which have training workbooks and trainer’s guides. A variety of career planning resources are available, as well as human resource business tools. Other training resources are available from the CTHRC website.[20]

The Canadian Tourism Commission is now compiling a comprehensive listing of certification options through industry associations in Canada is now being compiled by the Canadian Tourism Commission. The industry profile and resource guide will soon be available on the CTC website.[21]

The Open Learning Agency has a module training programs for individuals working in or considering entering the tourism industry in BC. Curricula consist of various levels of workbooks and accompanying videos. The materials were developed in collaboration with industry associations.

SuperHost Customer Service Training is administered by Tourism BC for customer service training with the internationally-recognized SuperHost Face to Face workshops. Operators can achieve SuperHost Business designation by having 60% or more of their employees participate in one or more of the SuperHost workshops.[22]

6.1.2 College and Tourism Programs

Formal education programs and degrees in tourism are available through the Open Learning Agency and the college system in the province. Each college has its own tourism program and in many cases curriculum.

Program categories, based on the credentials earned and the length of delivery, include the following: Short Term Programs (less than six months); Certificate Programs (1 year); Diploma Programs (2 years); and Degree Programs (4 years). Some institutions offer several programs at various levels. In some of these cases, the programs at each level are designed to ladder into each other.

There are also a number of institutions offering private tourism training and instruction in the Province of British Columbia. Approved facilities are listed with the Private Post Secondary Education Commission of British Columbia.[23]

Northwest Community College (NWCC) offers the following programs: [24]

Frontline Tourism Worker Program – Delivered by NWCC in Hazelton, this program provides certified training for hospitality positions like servers and cooks.

Professional Cook Training – Designed for individuals who wish to train for employment as cooks at a junior level in the food catering industry and for those already employed who wish to upgrade their skills or prepare for the Trades Qualification Certificate. This course is only offered at NWCC’s Terrace campus.

Cultural Tourism Certificate Program – This program is the initial entry point or stepping stone in the larger tourism hospitality framework. It prepares graduates with the required knowledge, skills and attitudes to work in a front line or supervisory level position within the tourism industry. It combines tourism knowledge and standards of practice with specific cultural tourism field skills. Core courses and experience that ensures a minimum level of training which meets provincial curriculum expectations are included. This program is offered periodically through the Hazelton campus of NWCC.

Wilderness Guiding Skills Program – The Wilderness Guiding Skills program is designed and taught to current industry standards by professional guides. The program combines theoretical and practical training, and wherever possible, practical training is performed in the field, simulating guiding in its natural environment. The schedule simulates the workplace: WGS participants are housed away from the college campus, live together, go to class together, and are responsible for the group’s meal planning and preparation and camp maintenance. The program runs for 90 days, usually six days per week and ten to fifteen hours a day. Students live on‹site in a base camp before moving on to smaller mobile units.

The first part of the program focuses on safety: wilderness first aid, survival skills, bear safety, and the safe handling of small tools and fuel burning appliances. As the program progresses, students move into the backcountry. In small groups they prepare for, conduct and conclude trips, which simulate guiding excursions through courses like canoeing, hiking, and camping. Next, students choose one of the following five-day electives; Backcountry Botany, Introduction to Mountaineering, or Advanced Hunting Skills.

In the final two 13-day sections, students choose extended training and practice in wilderness travel and either an angling or rafting focus.

Coastal Eco-Adventure Tourism - The Coastal-Eco Adventure Tourism program is a five month program that exposes the learner to the realities of the field and addresses the professional standards, safety, risk management, and legal and ethical issues that impact this sector. Students are well prepared with the interpersonal, organizational, customer service, and technical field skills necessary to secure employment in this field. The program includes numerous field and base camp activities allowing participants the opportunity to utilize and reinforce skills learned throughout the training period. Assuming supervised responsibility of camp setup and management, learners train for work in isolated environments experienced by professionals in this industry.

The program involves participation in both theoretical and practical learning environments. Theory classes are conducted in the classroom setting where most appropriate and classes are generally delivered over a six-hour day. Practical activities are taught in their natural environment and will require student participation twenty-four hours per day for up to three weeks at a time.

Students will learn from experts in this field committed to the promotion of environmental stewardship, respect for biodiversity, and sustainability and ecological integrity. The program incorporates available provincial and/or national certifications that exist within the industry.

6.1.3 Other Resources

Training materials and resources for local entrepreneurs and workers interested in pursuing a tourism career are available from the following organizations.

As discussed previously, the Pacific Rim Institute of Tourism (PRIT) had maintained a reference library containing a variety of training and education manuals, videos and other resource guides widely accessed by the tourism industry. While some programs have been assumed by HIEAC, it is hoped the majority of the resource library will be taken over by an exiting tourism organization and again made available to the public.

Canadian Tourism Human Resources Council[25] offers workbooks, trainer's guides, train-the-trainer resources and videos addressing the skills necessary for professional development. National training resources exist for eight tourism sectors, including adventure tourism.

Recruiting of hospitality workers can be done through Destinations[26] a tourism-specific employment service for British Columbia. The program offers hospitality workers and employers direct access to each other. It is B.C.'s largest and most successful tourism employment and training service.

6.1.4 Financial Assistance

The following are brief descriptions of key tourism business development financial resources. A detailed list of programs is provided in Appendix 1.

6.1.5 Information Sources

The following key information sources can be referenced to keep up-to-date on program availability:

A Road Map to Tourism Financing, Canadian Tourism Commission[27] – The CTC’s Industry Issues group has produced a guide to financial assistance for tourism development in Canada. Finding the capital to finance innovation in the tourism industry is important, and sometimes difficult due to perceptions that the industry is small, seasonal and poorly managed. Tourism businesses are seen as high-risk businesses. These perceptions of tourism businesses result in insufficient access to both debt and equity financing for capital developments and marketing costs. The guide is one tool for bridging the gap between capital supply and demand in tourism.

Sources of Financing, Strategis Web Site - Industry Canada’s Strategis web site offers an extensive database of financial providers and diversified resources to build your financing knowledge.[28]

Canada/BC Business Service Centre – The CBCBSC web site has a financial assistance portal with links to several searchable databases, including all of the programs listed in CTC’s program listing discussed above.[29]

6.1.6 Key Financial Resources

In most cases, individuals and organizations seeking financial program assistance must deal with national or regional service centres as their first point of contact. However, in some case, locally-based contacts can be made, taking some of the intimidation out of the process. Listed below are some agencies and programs with a local or northern BC presence.

Community Futures Development Corporations (CFDC) - Community Futures Development Corporations provide business loans to assist existing businesses expand, or to help entrepreneurs create new businesses. Loan amounts are up to $125,000. 16/37 CFDC services the Hazelton area[30] A referral service to 16/37 is provided by the Upper Skeena Development Society in Hazelton.[31]

Business Development Bank of Canada (BDC) - The Business Development Bank of Canada (BDC) is Canada's small business bank. BDC plays a leadership role in delivering timely and relevant financial and management services, with a particular focus on the emerging and exporting sectors of the economy. BDC is dedicated to helping create and develop Canadian small and medium-sized businesses. BDC has offices in Prince George[32] and Terrace[33].

Canada Small Business Financing Program (CSBF) - The Canada Small Business Financing Program was created to help small businesses reach their potential by making it easier for them to get term business improvement loans to finance the purchase or improvement of fixed assets, for new or expanded operations. Administered under the Canada Small Business Financing Act (CSBFA), the program is a joint initiative between the Government of Canada and private-sector lenders. All charter banks with branches in the region participate in this program.

General tourism programs include the following:

Tourism Investment Fund - Development Capital for Tourism fund helps finance high-end tourism infrastructure outside major urban centres. It is designed specifically for existing tourism operators that offer more than a one-season attraction, or for operators who have the potential to expand beyond a single season.[34]

Tourism Industry Loan Fund - The Tourism Industry Loan Fund is a partnership between Western Economic Diversification Canada and the Business Development Bank of Canada to provide debt financing to Western Canadian small businesses in the tourism industry. The program provides flexible term debt financing for small tourism businesses to obtain leading edge technological tools, undertake staff training, create innovative marketing strategies, undertake modest capital projects, and other priority activities to compete more effectively with growing international competition.[35]

6.2 Regulatory and Licensing

Key items of governing the regulation and licensing of lodging and food service establishments in BC include the following.

Hotel Keepers Act / Hotel Guest Registration Act - These Acts govern businesses renting out accommodation for overnight guests. For a possible listing in the “BC Accommodations Guide”, individuals must contact the Accommodations Program at Tourism British Columbia for information on eligibility criteria.

Fire Services Act & Building Safety Standards Act - The Fire Services Act, fire Code and Building Code (established under the Municipal Act) provide the regulations for the construction of public buildings, exits, fire safety standards for all public places.

Swimming Pools and Wading Pools (Health Act) - There are specific regulations pertaining to the construction and maintenance of swimming pools, spray pools, and wading pools. Plans must be approved, including nature of auxiliary facilities, safety features, health protection and the operation of a pool, lifeguard, record keeping, disinfection, bathing loads and lavatory facilities.

Hotel Room Tax Act - Ministry of Finance and Corporate Relations Consumer Taxation Branch

Travel Agents Act - This Act requires travel agencies and travel wholesalers in the province selling or offering travel services to the public to register, contribute to the Travel Assurance Fund, and pay an annual fee. The Act requires an agency to have a business address. A travel agency cannot be operated out of a home address. The following classes of persons are exempt from the Act:

} [1] Front cover photo: The Home Resort, Colorado

[2] BC Parks has recently announced that it plans on shutting down the Ross Lake day-use area. The Hazelton communities have been approached by BC Parks with the offer to take over the running of Ross Lake. However, with an average annual operating cost of about 7,000.00, plus annual maintenance and on-going capital improvements – this option appears to be cost prohibitive to the local communities.

[3] Recent policy changes in the Ministry of Forests state that the Ministry will no longer plan, administer nor operate any forest recreation sites. These sites will either be dismantled or will be offered to the private sector to run and operate. Most likely, they will cease to exist.

[4] Statistics in this section have been source from Tourism British Columbia – Research Services Branch.

[5] Includes the communities of: Kitimat/Kitamaat Village, the Hazeltons, Terrace and area, the Nass Valley & Stewart, BC.

[6] PR Newswire, November 15, 2001 News, Tour Operators Adventure travel shows resilience during slump.

[8] Cited in: Canadian Tourism Commission, CTX Newsletter, Posted: (2002-Mar-20) Author: Ian Stalker

[9] Survey undertaken with the assistance of Blue Ice Communications, Vancouver, BC.

[10] http://www.bclca.com/hospitality/guide.htm

[11] Hospitality Valuation Services and Smith Travel Research, Canadian Lodging Outlook, October 2001.

[12] RevPAR = occupancy x average room rate.

[13] Personal communication, Pierre Lussier, Lussier Log Homes, Terrace.

[14] Order-of-magnitude estimates only. Actual costs could increase significantly with the level of “luxury”.

[15] Includes site preparation and work, transportation and handling, professional fees and insurance.

[16] Includes room, restaurant and reception furnishings, kitchen, laundry and office equipment.

[17] Arthur Anderson and Smith Travel Research, The Host Report: Annual Report for the Year 1998.

[18] Statistics Canada, Small Business Profiles BC1997, Accommodation Services Industry & Food and Beverage Services.

[21] For more information contact Frank Verschuren at verschuren.frank@ic.gc.ca

[22] SuperHost Customer Service Training Tel (250) 387-1711.

Community Economic Development - Documents

1.2 Description of the Opportunity

3.3.2 The Travel Sector à Post 9/11

Adventure Travel

North America Motor Coach Bookings On Increase

Operator à

Concierge/Bliss Tours

Rare Indigo

Horizon Tours

Cantrav

Operator à

Tauck World Discoveries

Jonview

Great Canadian Rail Tours Ltd.

Butterfield & Robinson

Operator à

International Conference Services

Spectacular Adventures

Off The Beaten Path

Virtuoso Travel Specialists

Operator à

International Conference Services

Spectacular Adventures

Off The Beaten Path

Virtuoso Travel Specialists

Operator à

Fresh Tracks

Art of Travel

Intrawest – Extraordinary Escapes

Princess Tours

Anderson Flats