Newfoundland and Labrador Product Development Strategy

- 153 -To be more explicit, the need to fill a gap in supply of accommodations would include somecombination of the following conditions applying to a particular designated destination area:o A shortage of accommodations in the area, as indicated by evidence of frequent turnawaysand unusually high occupancies that extend beyond the peak summer season(or in some cases, low occupancies, because, while the area has appeal and marketsavailable, it lacks enough accommodations to qualify the area as an overnightdestination). (Based on data compiled during this study, there is no evidence of such ashortage outside of the peak summer season, other than in St. John’s. This situationcould change in future, however.)o An absence or evident shortage of the kind of accommodations sought by tourists(and/or specific market segments), particularly in areas that have large markets nearbyor passing by, in terms of:- Types and character of accommodations available- Quality of properties in the areao Introduction of a new type of accommodation property to the area that hasdemonstrated success in other locations and also qualifies, as above, as filling anevident gap (Here we are referring to a unique character property, not just a differentchain property.)o In every case, there also needs to be a sound business case presented that any suchgaps are significant gaps, such that growth in tourism visitation and/or spending isbeing constrained as a direct consequence.o Also, the gap should exist for more than just July and August, and the property shouldsimilarly operate for longer than just the peak seasonAgain, as with demand influencing accommodations, the strategy should be to address fillinggaps in the context of the priority destination areas, with the highest priority to the tier 1destinations and the lowest to areas that are outside of the defined destination areas.Support should be for:o New development and/or expansions where warrantedo Upgrading and property transformations to meet market expectationsFit the Approach to the Tourism Product Development StrategyPursuing and supporting demand generating accommodations, demand influencingaccommodations and filling accommodation gaps all fit the tourism product developmentstrategy. The table on the next page illustrates this:THE ECONOMIC PLANNING GROUP of Canada Newfoundland & Labrador Tourism Product DevelopmentD. W. Knight Associates Strategy and Accommodation Needs Study