Newfoundland and Labrador Product Development Strategy

- 251 -Demand° Occupancy rates in the zone are well below provincial and regional averages for both theJuly/August period and June through September, and very low during the rest of the year(Note there was a very low reporting rate in 2000 and 2001)° All types of properties report lower than average occupancies. However, our interviewssuggested that some of the better quality properties in this zone had performances thatwere well above theaverages being reportedin the data.° Demand in this zoneappears to be very closelytied to the MarineAtlantic Ferry schedule,with many propertiesfilling on the three or fournights a week whentravellers are in the areawaiting for/disembarkingfrom the ferry. When theferry service cuts backand then stops in lateSeptember, demand dropssignificantly.° The popularity of Cape St. Mary’s does not appear to have translated into accommodationdemand. As with the Irish Loop Zone, this may be due to a gap in the kinds ofaccommodations sought by tourists, or the lack of other things to see and do after a visit toCape St. Mary’s.Opportunities and Needs100%90%80%70%60%50%40%30%20%10%0%19%Zone 18: Avalon Gateway - Monthly Occupancy Rates 20027%34%21%16%12%The Cape Shore drive from Argentia to Cape St. Mary’s is rated as a two star attraction byMichelin, ‘Worth a Detour’. This suggests there may be potential for this area to becomemore of an overnight destination for visitors. Tour operators catering to the FIT market haveidentified a need to fill the gap in this area in terms of the kinds of accommodations sought byvisitors. There may, therefore, be an opportunity for a demand-influencing style property (seeSection 9 for definitions and the introduction to this section on accommodations for cautionsand caveats) in this area between Cape St. Mary’s and Argentia – perhaps a character inn withdining, and suitable for small group specialty tours as well as independent travellers,somewhere along the shore in this area. Several tour operators commented on theneed/opportunity for such a facility.48%55%37%22%13% 10%25%JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC YearOccupancyTHE ECONOMIC PLANNING GROUP of Canada Newfoundland & Labrador Tourism Product DevelopmentD. W. Knight Associates Strategy and Accommodation Needs Study