Newfoundland and Labrador Product Development Strategy

- 303 -Zone 5: Labrador StraitsSupplyZONE 5 – Labrador StraitsNumber 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 2 73 0 0 1 14 1 59 0 0B&Bs 4 13 0 0 4 13 0 0 0 0Cottages 2 24 0 0 2 24 0 0 0 0B&Bs/Inns 0 0 0 0 0 0 0 0 0 0Total: 8 110 0 0 7 51 1 59 0 0% Of each- - 87.5% 45.5% 12.5% 53.6% - -typeRegion 38 603 5.3% 1.7% 81/6% 85.4% 10.5% 12.8% 2.6% 0.2%(Labrador)Province 550 7,121 3.5% 2% 60.5% 57.3% 25.8% 29% 10.1% 11.7%° This region has only 110 units in total and, at an average of 2.5 persons per room, couldaccommodate some 275 persons per night or over 25,000 during a 100 day tourist season° There is only one property at more than a 3 star grade – the Northern Lights Inn inL’Anse-au-ClaireDemand° Occupancy levels are below the averagefor Labrador and for the provinceoverall. Our interviews suggest thatdemand in the peak season of 2003 wasmixed with some properties reportingstrong demand and others not doing aswell. The very short season is a majorweakness in the area.° Note, however, that the reporting rate isless than 50% - and there are only asmall number of properties in total; datafor 2002 indicates that only 50 rooms50%44%were reporting occupancy rates – this could be one hotel property alone. As such, theoccupancy data must be viewed with caution.° Outside July and August, demand is very low with occupancy rates in the 20% rangeevery month; hotel/motel properties do the best in the winter months, likely due tocommercial traffic.100%90%80%70%60%50%40%30%20%10%0%Zone 5 Labrador Straits Occupancy with Comparison to theRegion and Province; 200271%35%47%63%26%35%47%42%39%July/Aug June-Sept Dec - April AnnualZone Region ProvinceTHE ECONOMIC PLANNING GROUP of Canada Newfoundland & Labrador Tourism Product DevelopmentD. W. Knight Associates Strategy and Accommodation Needs Study