Newfoundland and Labrador Product Development Strategy

- 104-Strategies for Building on Shoulder and Winter CapacitySeasonality of demand is the #1 challenge facing the province’s tourism industry. It limitsearning capacity and puts downward pressure on pricing. A key top priority strategy thereforehas to be to grow shoulder and winter season demand, improve pricing and yield and therebyassist the industry become both profitable and sustainable. This is a fundamental prerequisitebefore the industry can be expected to start investing in upgrading and expansion on their own.Shoulder and Winter Season DemandAs mentioned earlier, the province is operating at capacity in two of our most important tourismdestinations in the summer, St. John’s and parts of the Northern Peninsula, particularly for thetravel trade and particularly at better quality properties. And there are other areas around theprovince where accommodations of the type and character being sought out by visitors areoperating at capacity during the peak season. But being busy in the summer isn’t enough tojustify building new tourism products or expanding capacity of existing ones if there is only acouple of months of high demand. The first focus therefore should be on growing demand in theshoulder and winter seasons where there is latent capacity, and in responding to the demands ofvisitors who are already coming at these times of year by making sure that attractions,experiences and services are available.On a seasonal basis, the priorities should be:o To strengthen and grow the early/mid fall season from Labour Day through to mid-October and beyond. Weather conditions are generally good at this time of year andthere is already a base of visitor activity on which to build – in fact, some destinationareas in the province do very well at least for the first three weeks of September or so.o To develop products and experiences that can attract demand during the late springseason, i.e. from mid May through June. Icebergs are a key attraction for this period –research indicates that they are a reason people come to NL and that they are one of themost asked about natural features by visitors during the summer season.o A third priority is winter, though in selected destination areas within the province itshould be given equal priority to fall and/or spring, particularly in WesternNewfoundland, and Labrador and to some degree in Central Newfoundland as well.Winter experiences should not be limited to outdoor, snow-based activities but includeurban getaways and packages (theatre, dining, event-based) as well as some destinationaccommodation based getaways and packages within close proximity to air entry points.St. John’s and Corner Brook are obvious examples.Exhibit 5 evaluates a list of attractions, activities and niche products as well as market segmentsand infrastructure needs with respect to their potential contribution to growing demand in theshoulder and off-seasons. (Note that the evaluation considered market size as well asmarketability in these seasons.)THE ECONOMIC PLANNING GROUP of Canada Newfoundland & Labrador Tourism Product DevelopmentD. W. Knight Associates Strategy and Accommodation Needs Study