Newfoundland and Labrador Product Development Strategy

- 255 -EASTERN REGIONNumber Number 1 – 1.5 Star 2 – 2.5 Star 3 – 3.5 Star 4 – 4.5 Starof Prop’s of Units Prop’s Units Prop’s Units Prop’s Units Prop’s UnitsHotel/Motel 13 505 0 0 11 359 2 146 0 0B&Bs 27 69 1 2 15 37 8 24 3 6Cottages 24 149 2 22 11 57 8 50 3 20B&Bs/Inns 12 78 0 0 5 34 4 25 3 19Total 76 801 3 24 42 487 22 245 9 45% of Each Type 4% 3% 55% 60.8% 28.9% 30.6% 11.8% 5.6%DemandSupply of Accommodations in Eastern Region: By Star Grade100%90%80%70%60%50%40%30%20%10%0%° Average annual occupanciesfor all properties in the Easternregion have only been in the40% range for the past threeyears, indicative of the lowlevel of demand outside thetourist season.80.0%70.0%60.0%50.0%40.0%30.0%20.0%10.0%° Peak season (July/August)3.0%occupancy was 70% in 20020.0%but occupancy levels for theJune through September periodProp'ts Unitsdecline significantly, to the 55% range, indicating the relatively soft spring and fallmarkets in this region. Outside of the June through September period, occupancy levelsare very low, generally inAccommodations in Eastern Region - Monthly Occupancy Rate: 2002the 30% - 35% range.16% 22% 25% 29%24%38%67%74%44%31%40.0%55.0%61.0%28.9% 30.6% 11.8%5.6%1/1.5 Star 2/2.5 Star 3/3.5 Star 4/4.5 Star26%20%38%JAN MAR MAY JULY SEPT NOV ANNUALOccupancyWe have looked at occupancydata by type of property andstar grade. The number ofproperties in each of thesecategories is too small toreport the data forconfidentiality reasons.However, the data clearlyindicates that properties ratedat 3 Stars or more outperformthose at the 1 – 2.5 Star gradelevel.THE ECONOMIC PLANNING GROUP of Canada Newfoundland & Labrador Tourism Product DevelopmentD. W. Knight Associates Strategy and Accommodation Needs Study