Newfoundland and Labrador Product Development Strategy

- 302 -local/regional residents and tourists on the ferry but local operators suggest that theincrease in demand is a combination of residents and a big increase in the number oftourists taking the circle tour - the 12 hour run from HVGB to Cartwright is much moreappealing, apparently, than the 35 hour run to Lewisporte. However, the routing of theferry has been the subject of much discussion and a recently completed study, and itremains unclear whether the terminus for the route will be Cartwright or Lewisporte.° The completion of the road link to Happy Valley-Goose Bay. A final routing has recentlybeen announced and plans are for the road to be developed over the next 3 – 5 years. Theroad will connect with the existing road some 87 km south of Cartwright, meaning thatthrough traffic will tend to bypass Cartwright and head to Port Hope-Simpson and furthersouth. When this road is completed, we assume that the ferry service from HVGB will bediscontinued. Cartwright’s potential future role in any ferry service that goes along thenorth Labrador coast is unknown. The volume of traffic that will use this route will have amajor impact on demand for accommodation (and also on campgrounds albeit to a lesserextent since we understand that the current activity includes a notable number ofrecreational vehicles) all the way from Happy Valley-Goose Bay to the Straits of Labradorand beyond. However, it is impossible at this time to estimate what volumes of trafficmight be generated.° The proposed Mealy Mountain National Park – Cartwright is proposed as the gatewaycommunity for this park.° The Port Hope-Simpson area may well see increased demand after the road opens since itwould be the first/last convenient overnight stop between the coast and Happy Valley-Goose Bay. Also, we understand that there is to be some consolidation of air service inthe area with the phasing out of air strips in Mary’s Harbour and Charlottetown, leavingthe Port Hope-Simpson air strip to service the area. However, as noted above, there hasjust been a significant increase in the supply of accommodations in this community.° Potential increases in attendance at Battle Harbour. Attendance volumes remain fairlylow and there are challenges accessing the site. However, if attendance were to increase,this would impact demand for accommodations in the Mary’s Harbour area.Given that the impact of the above factors is unknown at this point, it is impossible for us toidentify any future needs or opportunities for accommodations in this zone. A carefulmonitoring will be required once some of these factors are resolved, and after the road iscompleted, to assess likely future accommodation needs and opportunities.THE ECONOMIC PLANNING GROUP of Canada Newfoundland & Labrador Tourism Product DevelopmentD. W. Knight Associates Strategy and Accommodation Needs Study