Newfoundland and Labrador Product Development Strategy

- 27 -Avalon region has 1/3 of the accommodation units in the province, with almost 30% in theWestern Region where theaverage property size is only 10Accommodations by Star Grade: 2003units. Labrador has fewer than 80.0%10% of the accommodation70.0%properties and units in theprovince.60.0%60.5%57.3%25.8% 29.0% 10.1% 11.7%A majority of properties andaccommodation units in theprovince – close to 60%, are40.0%30.0%either 2 or 2.5 star properties.This is in part a reflection of20.0%the high proportion of10.0%3.5% 2.0%hotel/motel properties, many of0.0%which are at this star gradelevel. Some 25% - 30% of theaccommodation product in theProp'ts Unitsprovince is at a 3 – 3.5 star level with about 10% at the 4 or 4.5 star level and less than 5% ata 1 to 1.5 star level. Newfoundland and Labrador has no 5 star properties.The Avalon region has the vast majority of the higher quality accommodation product with84% of the four star units. This region also has the largest properties with an average size of17 units. The Central region has the lowest number of 4 – 4.5. star properties on the Island;the Western region has the highest number of 1 – 1.5 star properties and also the smallestsized properties on average.A regional and zone analysis of the supply and demand for accommodation properties isfound in Part II of this report; with more detailed tables on accommodation supply anddemand in the Technical Appendices Report.There has been a significant increase in the supply of accommodation in the province in thepast few years. Data from the province for 2002/3 indicates a total of 470 properties and6,650 units – some 17% fewer properties and 6% fewer units than in our data base (note thatnot all properties are in the Travel Guide due to early deadlines; also some properties in thedata base may have closed). Based on our field work for this project, it appears that there areactive plans/proposals or projects under construction for a significant further increase insupply in the next one to three years, if all projects/plans materialize. In fact, data provided tous in late January 2004 by Canada Select indicates that the number of properties is now up tojust over 600 with most of the new supply in smaller B&B and cottage properties.Comparison to Other Provinces50.0%1/1.5 Star 2/2.5 Star 3/3.5 Star 4/4.5 StarNew Brunswick is the only other province that requires all accommodation properties to berated by Canada Select before they can be listed in the provincial guide, and it is also similarin population to Newfoundland and Labrador, making it relevant for comparison. In bothTHE ECONOMIC PLANNING GROUP of Canada Newfoundland & Labrador Tourism Product DevelopmentD. W. Knight Associates Strategy and Accommodation Needs Study