Newfoundland and Labrador Product Development Strategy

- 294 -Demandoo100%90%80%70%60%50%40%30%20%10%0%Annual occupancies are close to provincial averages – the region benefits from the winteractivity associated with Marble MountainHotel/motel occupancy rates have been above average for both July/August and the Junethrough September period. They have also been reasonable on a year round basis – due tocommercial traffic in the area, asZone 8 Humber - Monthly Occupancy Rates 2002well as winter demand associatedwith skiing. Note that 2003occupancies are likely to be quite77%70%a bit lower due to a downturn in61%group tour business which is a56%51%48%50% mainstay of demand for hotels in45%40% 42%Corner Brook during the37%32%July/August periodOpportunities/NeedsJAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC Year o There is no evident shortages ofOccupancyaccommodation, however therehave been suggestions made bytour operators and industry leaders as to the need for:- Upgrading of hotel accommodations in Corner Brook- 4 star plus, demand-influencing style property in Corner Brook- Additional capacity in Corner Brook to accommodate larger conventions(apparently the Corner Brook Economic Development Corporation is havingthis assessed)° These opportunities should be assessed in the context of the earlier discussion about theopportunities to establish the Humber Valley area as a four season destination,o The full impact of Humber Valley from an accommodation rentals stand point is notknown at this time. However, the rental rates being proposed, ranging from $300 $700 pernight for multi-bedroom units, suggests that only the high end of the market will be servedby this property.Zone 9: Long Range (Includes Stephenville, Port au Port Peninsula, Burgeo area)Supply28%ooThis zone has fewer than 200 units, but they offer a mix of types of properties and stargrades – except there is very little in the way of cottages; hotel/motel properties tend to beat the 2 – 2.5 star grade levelNote that a new property opened in 2003 out near the end of the Port au Port Peninsula - atthe 4 Star Level– Crosswinds Resort with 9 rooms with diningTHE ECONOMIC PLANNING GROUP of Canada Newfoundland & Labrador Tourism Product DevelopmentD. W. Knight Associates Strategy and Accommodation Needs Study