Newfoundland and Labrador Product Development Strategy

- 33 -Challengeso Accommodation operators identified four key challenges in the operation of theirbusiness:- The short season – almost all were in agreement on this challenge and spoke of thecritical need to extend the season and the difficulties with operating a viablebusiness (particularly a full-service business) on a three to four month season.- Continued increases in overhead expenses such as electricity, insurance, fuel, heat,taxes, wages- Workers Compensation program- Human resource issues such as finding staff with the skills needed, keeping skilledstaff, providing training and challenges accessing HRDC funding to assist withstaffing costso Operators also expressed concerns about unlicensed accommodation in many areas and aneed for enforcement of licensing regulations.Future Planso Only a few operators were planning to sell their properties; many had plans to expand butfinancing and financial viability were critical issues constraining the implementation ofthese plans. Most of the operators interviewed indicated that they were doing onlyongoing renovations and upgrades as necessary.Market Readiness and Best Practices Issueso A notable number of the properties interviewed did not have brochures and many did nothave web sites or were either currently developing them or needed help to develop them;a few indicated that they were moving away from print collateral to a dependence on theirweb site. Properties that did have websites were seeing dividends in the form of directreservations.o There was only very limited packaging, either in peak season or throughout the rest of theyear. A few operators had packages for their own business e.g. honeymoon package;almost no-one interviewed was packaging with other tourism businesses and activities.o While most operators acknowledged a listing in the provincial travel guide, few wereaware of other guides or directories that existed. Almost none of those interviewed had amarketing plan and few had identified their target markets.Industry PerspectivesIndustry representatives and stakeholders from across the province provided perspectives onthe accommodations sector. The key concerns and issues identified were as follows:o The challenge of economic viability for many accommodation operators in almost allareas of the province was identified as a critical issue. The highly seasonal nature of thetourism industry, high capital investment requirements, and the traditionally low pricescharged at accommodations were cited as key factors.o It was suggested that the accommodations sector aggressively stimulate spring and fallshoulder season tourism activity through a program of discounted rates and packages.o A need for more professionalism and management training was identified. A betterunderstanding of the upscale market and their requirements and expectations, and ofTHE ECONOMIC PLANNING GROUP of Canada Newfoundland & Labrador Tourism Product DevelopmentD. W. Knight Associates Strategy and Accommodation Needs Study