CENTRAL ALBERTA TOURISM ALLIANCE CENTRAL ALBERTA TOURISM ALLIANCE - - PowerPoint PPT Presentation

CENTRAL ALBERTA TOURISM ALLIANCE CENTRAL ALBERTA TOURISM ALLIANCE ACCOMMODATION STUDY ACCOMMODATION STUDY Key Findings Prese Key Findings Presentation – tation – Sylvan Lake ylvan Lake

January 31, 2018

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TABLE OF TABLE OF CONTENTS CONTENTS

• 1. Study Overview
• 2. Defining the Central Alberta Region
• 3. Regional Visitor Markets
• 4. Regional Accommodation Market Performance
• Focus on Red Deer County & Area (featuring Sylvan Lake)
• 5. Central Alberta Accommodation Strategic Framework
• Key Action Items for Sylvan Lake
• 6. Next Steps

STUDY OVERVIEW STUDY OVERVIEW

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STUDY OVERVIEW STUDY OVERVIEW

Study Background Study Background

• Central Alberta Tourism Alliance completed a Destination Management

Plan (DMP) in 2015 that identified a business case for enhancing the tourism capacity of the region

• One of the key strategies was to “Provide the Right Mix of Places to Stay in

the Right Locations”, which the subject study was initiated to address

• Primary concerns:
• Campgrounds approaching capacity in the peak summer months
• Lack of supply to accommodate winter camping in the West County
• How to extend regional visitation year-round – particularly with declining demand

from traditional corporate markets

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STUDY OVERVIEW STUDY OVERVIEW

Study Purpose: Study Purpose:

• To assess the opportunity of enhancing existing facilities and developing

new fixed roof and non-fixed roof accommodations that have the potential to strengthen Central Alberta’s position as a significant year- round tourism destination, and prime location for small business events, in the next 10 to 15 years

Study Objectives: Study Objectives:

• To assess the existing accommodation supply
• To analyze current levels of overnight demand
• To project future demand
• To project future supply requirements
• To identify development opportunities
• To develop a strategic framework for the Region

DEFINING THE CENTRAL ALBERTA REGION DEFINING THE CENTRAL ALBERTA REGION

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DEFINING THE CENTRAL ALBERTA REGION DEFINING THE CENTRAL ALBERTA REGION

11 Partner Municipalities:

• City of Red Deer
• City of Lacombe
• Town of Rocky Mountain House
• Town of Sylvan Lake
• Town of Innisfail
• Town of Blackfalds
• Town of Olds
• Red Deer County
• Lacombe County
• Mountain View County
• Clearwater County
• 31,700 squa

31,700 square KM re KM

• Strategic location –

Strategic location – within 90 ithin 90 minute drive of minute drive of Calgar Calgary & y & Edmonton Edmonton

• Main transportation links:

Main transportation links: Highwa Highway 2 y 2 (north-south), (north-south), and Highway 11 (east-west) and Highway 11 (east-west)

• 4

4 Regional Airports (Red Deer, Inni Regional Airports (Red Deer, Innisfail, Rocky Mountain House, Olds) sfail, Rocky Mountain House, Olds)

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CENTRAL ALBERTA DEMOGRAPHICS CENTRAL ALBERTA DEMOGRAPHICS

• 235,200 residents, projected to

grow by 9.5% to reach 257,400 by 2021.

• 90,900 “households” spent an

average of $125,700 in 2016 (14% above national average).

• 140,500 employees in 2016 –

retail industry employed 15,700 (11% of labour force), followed by construction with 14,800 jobs.

• Key industries: agriculture, oil and

gas exploration / extraction, petrochemicals, professional and technical services, education.

• Tourism is

Tourism is still gaining importance still gaining importance as as an econom an economic generator ic generator for the for the Region overal Region overall. l.

Central Alberta Region Largest Sectors by Labour Force - 2016 Sector Labour Force % of Labour Force Retail trade 15,729 11.2% Construction 14,835 10.6% Health care and social assistance 14,273 10.2% Mining, quarrying, and oil and gas extraction 13,627 9.7% Manufacturing 9,132 6.5% Educational services 8,522 6.1% Accommodation and food services 8,077 5.7% Other services (except public administration) 7,950 5.7% Public administration 7,436 5.3% Professional, scientific and technical services 6,766 4.8%

Source: Sitewise Environics Analytics, 2016

Central Alberta Region Economic Profile Demographics

Population 2016 Estimate % of Canadian Total % Change 2011-2016 Average Annual Growth Rate 2011-2016 235,157 0.65% 12.60% 2.52% Household Income – 2016 Average % Above/Below National Average Total Income 2016 Estimate % Canadian Total Per Capita Hhlds. $100,000+ 26.18% Above $10,913,950,000 0.79% $46,411 46.00% Household Spending – 2016 Average % Above/Below National Average Total Household Spending 2016 Estimate % Canadian Total Per Capita Per Household 14.46% Above $11,432,563,177 0.72% $48,617 $125,736

Source: Sitewise Environics Analytics, 2016

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SYLVAN LAKE – SYLVAN LAKE – LOCAL ECONOMIC SUMMARY OCAL ECONOMIC SUMMARY

Dem Demographics graphics

• Population of 14,800 as of 2016, 6% of Central

Alberta’s population Economic Economic Generators Generators

• Key industries include: oil and gas, construction, retail

trade and tourism

• 72 of 1,200 businesses are tourism-related

Tourism Demand urism Demand Generators Generators

• Town redeveloped Lakefront Park as an active

recreational park in 2017

• Working on a Festival and Event Strategy to bring

events 8 months of the year

• Promoting sport tourism facilities, i.e. NexSource Centre

Other Economic Other Economic Development Development Pr Projects

• Year-round Investment Attraction Strategy focusing on
• pportunities in the Waterfront Commercial District

(WCD):

• Sylvan Lake Waterfront Area Redevelopment Plan
• Community owned 5-acre lakeshore property
• Existing properties and vacant sites in the town core

commercial district

REGIONAL VISITOR MARKETS REGIONAL VISITOR MARKETS

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CENTRAL ALBERTA TOURISM EXPERIENCES CENTRAL ALBERTA TOURISM EXPERIENCES

Central Alberta offer Central Alberta offers a a diverse rang diverse range of tourism assets & e of tourism assets & experiences, experiences, notably: notably:

• Nature, Adventure and Ecotourism
• Agri-tourism and Culinary Tourism
• Cultural, Heritage and Arts Tourism
• Aboriginal Tourism
• Festivals, Events & Sports Tourism
• Business Events

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CENTRAL ALBERTA STUDY REGION VISITATION CENTRAL ALBERTA STUDY REGION VISITATION

+1.2% +4.1% 3,250 3,300 3,350 3,400 3,450 3,500 3,550 3,600 2012 2013 2014

Person Visits (in 000s)

Person Visits to Central Alberta Region 2012-2014

• CBRE obtained a customized analysis of

Census Divisions #8 and 9 to analyze visitation to the Study Area.

• 3.6 million visitors arrived in Central

Alberta in 2014, up 4.1% from 2013.

• 92% (2.6 million) were Albertans.
• 27% (974,000) of total visits were
• vernight person visits travelling to the

region for Visiting Friends / Relatives (VFR) or Pleasure purposes.

• Average party size was 2.4 in 2014, and

length of stay increased from 0.7 to 0.8 – directly related to increase in campground visits (225,000 in 2014, up from 174,000 in 2012.

NOTE: Town of Olds and Mountain View County are in CD 16, which includes the City of Calgary; however, visitation to Olds and Mountain View County is more reflective of CD 8&9.

Source: Statistics Canada’s TSRC and ITS data, 2012-2014

32 325 30 306 56 563 73 731 100 200 300 400 500 600 700 800 2012 2014

Person Nights (in 000's)

Central ral Albert rta Per Person Nig Nights b by A Accommodation

• n Type

20 2012 12-201 014 ( (in 000' 0's)

Hotel/Motel Campground

Source: Statistics Canada's Travel Survey of Residents of Canada 2012, 2013, and 2014.

+29.8%

• 5.7%

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Visitor Spending Visitor Spending

• Visitors spent more than $380 Million in

Central Alberta in 2014, of which just under 50% was spent during overnight person trips ($186 Million).

CENTRAL ALBERTA VISITOR SPENDING AND SEASONALITY CENTRAL ALBERTA VISITOR SPENDING AND SEASONALITY

$1 $196.2 Mi Million, 5 51% $185. 85.8 8 Mill illion, 4 49%

Spending in Central Alberta Region by Length of Stay - 2014

Same-day Overnight

Source: Statistics Canada's Travel Survey of Residents of Canada 2012-2014

Visitor Seasonality Visitor Seasonality

• Approximately one third of all visitors came

to Central Alberta during the summer months (Jul-Sep).

• More Albertans take vacations during this

time, when campground operations are

• pen and lake-based activities available.

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• Environics PRIZM5’s defined lifestyles were used to determine a profile of the top target tourist

markets most interested in overnight experiences in Central Alberta

• Ten PRIZM segments were identified – along with seven geographic markets with greater than

average propensity to travel to Central Alberta for overnight stays

• Dominant target segment across all 7 markets is Lunch at

Lunch at Tim’s - Tim’s - singles and solo-parent families, who tend to be bargain hunters, take domestic vacations, or stay in a campground

• r RV Park, and enjoy outdoor activities

CENTRAL ALBERTA TARGET VISITOR SEGMENTS CENTRAL ALBERTA TARGET VISITOR SEGMENTS

Key G Geog

• graphic

raphic Markets Markets Red D Deer eer 90 90 m min D n Drivetim ivetime Wi Winnipeg, M eg, MB Saskat atoon,

• on, S

SK Re Regina, gina, S SK Bra Brando don, M n, MB Prince A Albert, SK , SK Moose J e Jaw, SK SK TO TOTAL TAL Total Population 1,545,290 796,364 306,794 241,942 57,652 44,981 36,976 2, 2,648 648,448 448 Total Households 587,143 311,944 119,781 96,956 23,864 17,149 16,447 1, 1,018 018,868 868 Top 10 p 10 Targ Target Segmen Segments Lunch at Tim's 12,208 31,112 10,882 11,647 4,054 4,126 4,814 67, 67,196 196 Aging in Suburbia 14,533 25,824 7,462 8,767 1,568 805 1,649 51, 51,841 841 Trucks & Trades 29,554 7,405 10,127 10,128 1,130 2,256 1,044 51, 51,516 516 Wide Open Spaces 25,870 2,651 2,856 550 1,035 66 63 32, 32,541 541 Exurban Wonderland 10,839 6,885 5,152 8,939 918 1,482 672 25, 25,948 948 Fresh Air Families 12,787 6,603 2,938 811 814 1,058 471 24, 24,671 671 Satellite Burbs 7,046 7,904 979 1,699 873 340 1,023 18, 18,165 165 Exurban Homesteaders 4,905 183 64 5, 5,088 088 Outdoor Originals 2,180 507 194 522 944 54 4, 4,401 401 Aging & Active 2,593 287 122 122 352 3, 3,476 476 Total Top Top 10 Ta 10 Target rget 122 122,515 515 89, 89,361 361 40, 40,590 42, 42,605 11, 11,036 11,199 199 10 10,142 142 284, 284,843 843 % of Households 20.9% 28.6% 33.9% 43.9% 46.2% 65.3% 61.7% 28.0% Source: Alberta Tourism, Culture and Recreation Analysis, Sitewise, 2015 Evironics Analytics, PRIZM KEY G KEY GEOG OGRA RAPH PHIC A IC AND D D DEMOGRAPHIC HIC LIF LIFESTYLE T YLE TARG RGET ET M MARKET RKETS F FOR C R CENT NTRAL A L ALBERT RTA

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• Largest source of overnight demand from

catchment area within a 90-minute drivetime

• f City of Red Deer.
• 1.5 million residents or 36% of AB

population - 10 target PRIZM5 clusters comprise 21% of all households.

• Primary targets are couples between 35-65

years with high propensity for outdoor activities (camping, fishing, hunting, snowmobiling), and midlife families with children who enjoy outdoor leisure.

TOP TARGET MARKET – TOP TARGET MARKET – RED DEER + 90-MIN DRIVE ED DEER + 90-MIN DRIVE

PRIZM Seg M Segment Li Lifest styl yle Gr e Group House seholds % o % of Alberta lberta Hh Hhsld sld Trucks & Trades Growing Families 29,554 24.6% Wide Open Spaces Older Parents, Younger Kids 25,870 23.5% Aging in Suburbia Midlife Families 14,533 28.4% Fresh Air Families Older Parents, Younger Kids 12,787 41.3% Lunch at Tim's Midlife Families 12,208 22.6% Source: Sitewise, 2015 Environics Analytics, PRIZM KEY L KEY LIFESTYL FESTYLE S E SEGMENTS ENTS Red D Deer eer 9 90 m min D Drivet etime C Catchmen ent Ar Area

ACCOMMODATION MARKET ACCOMMODATION MARKET PERFORMANCE PERFORMANCE

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PROPERTY TYPE CLASSIFICATIONS PROPERTY TYPE CLASSIFICATIONS

Fixed Roof Accommo Fixed Roof Accommodatio dations ns

• Hotels
• Motels
• Cabins/lodges (accommodation)
• Seasonal accommodations, e.g. post-

secondary residences

Excludes: B&Bs, Guest Ranches, Cottages

Non-Fixed Roof Accomm Non-Fixed Roof Accommodatio

• dations

ns

• Campgrounds (serviced, un-serviced,

group) - municipal, private and public/private

• RV Parks

Excludes: Federal and Provincial campgrounds, and four season RV resorts

Cabins, The Cabins, The Broadmo Broadmoor Black Knight Inn, Black Knight Inn, Red Red Deer Deer Best Best Western Plus Lacom Western Plus Lacombe Inn e Inn & Suites, & Suites, Lacom Lacombe New New Old Town Cottages Old Town Cottages & & RV RV Park, , Rocky M cky Mountain H Hous use

FIXED ROOF ACCOMMODATION MARKET FIXED ROOF ACCOMMODATION MARKET

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FIXED ROOF ACCOMMODATION MARKET - FIXED ROOF ACCOMMODATION MARKET - ALBERTA LBERTA

• Healthy energy sector helped boost hotel industry after recession of 2008
• Decline in oil prices impacted room demand in 2015, RevPAR declined by 15%, and 2016

showed further decline in occupancy and average daily rate (ADR)

• YTD September 2017 shows ADR was down, but occupancy increased 1.2 points
• Long term recovery and growth is expected for Alberta, with growth in the hotel industry

being closely linked to the overall health of the energy Sector

• As energy prices increase back to previous levels, hotel demand volumes will follow

NOT NOTE: Data Data exclu excludes es Albe Alberta Resort areas Resort areas (i. (i.e. Banf Banff, Jasp Jasper er, Canmor Canmore and e and Lake Lake Louis Louise)

Year Occupancy ADR ADR % Growth RevPAR RevPAR % Growth 2005 63.7% $108.66 1.3% $69.22

• 2.1%

2006 65.8% $110.98 2.1% $73.02 5.5% 2007 71.5% $125.68 13.2% $89.86 23.1% 2008 68.5% $133.79 6.5% $91.65 2.0% 2009 58.9% $128.74

• 3.8%

$75.83

• 17.3%

2010 58.3% $125.30

• 2.7%

$73.05

• 3.7%

2011 62.3% $125.84 0.4% $78.40 7.3% 2012 65.8% $132.38 5.2% $87.11 11.1% 2013 68.1% $138.10 4.3% $94.05 8.0% 2014 67.8% $142.98 3.5% $96.94 3.1% 2015 58.6% $140.80

• 1.5%

$82.52

• 14.9%

2016 52.3% $131.51

• 6.6%

$68.81

• 16.6%

YTD Sep 2016 53.8% $132.08

• $71.03
• YTD Sep 2017

55.0% $130.80

• 1.0%

$71.94 1.3% CAGR

• 1.8%

1.8%

• 0.1%

Source: CBRE Hotels

Alberta Market Performance Results

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• Region hosts 78 properties and 4,656

rooms within 11 communities.

• Many communities were too small to

allow for confidentiality of property data, therefore were included within the greater “County & Area” analysis.

• 2015 and 2016 data was analyzed

according to the following submarkets:

• Clearwa

Clearwater County & er County & Area Area (including Rocky Mountain House)

• Lacomb

Lacombe County & e County & Area Area (including City

• f Lacombe, Blackfalds)
• Mountain View County & Area

Mountain View County & Area (including Town of Olds)

• Red Deer County & Area

Red Deer County & Area (including City

• f Red Deer, Innisfail, Sylvan Lake)

FIXED ROOF ACCOMMODATION MARKET INVENTORY – FIXED ROOF ACCOMMODATION MARKET INVENTORY – CENTRAL ALBERTA REGION CENTRAL ALBERTA REGION

Number er of

• f Pr

Props

• ps

# of Rooms Red Deer City 19 2,093 Red Deer County (Gasoline Alley) 9 666 Innisfail 5 243 Sylvan Lake 7 271 City of Lacombe 5 245 Blackfalds 2 96 Lacombe County 3 39 Olds 7 346 Rocky Mountain House 9 575 Clearwater 12 160 TOTA TOTAL 78 4,734 Number er of

• f Pr

Props

• ps

# of Rooms Red Deer County & Area 40 3,273 Lacombe County & Area 10 380 Mountain View County & Area 7 346 Clearwater County & Area 21 735 TOTA TOTAL 78 4,734 Co Coun unty a and S Surro rrounding Ar Areas Ho Hotels/Motels Summa mmary of

• f Inventor
• ry b

by Co Commun unity/A /Are rea Ho Hotels/Motels Co Comm mmun unity/A /Are rea Su Summar ary of

• f Inventor
• ry b

by Co Coun unty/Sur urroun unding Ar Area ea

21 CBRE TOURISM & LEISURE GROUP | CENTRAL ALBERTA TOURISM ALLIANCE

FIXED ROOF ACCOMMODATION MARKET PERFO FIXED ROOF ACCOMMODATION MARKET PERFORMAN MANCE – E – CENTRAL ALBERTA REGION CENTRAL ALBERTA REGION

Source: CBRE Limited

• Central Alberta performed below the overall Provincial hotel market by about 35-40% in

RevPAR; ending 2016 at 39% occupancy and $107 ADR.

• Region still reliant on oil and gas - limited diversity in majority of local economies.
• Region relies equally on demand generated by corporate (42%) and leisure segments (44%),

with meeting/conference demand (8%) highly concentrated within the larger communities

• Demand for transient overnight stays and meeting/conference space has declined – some

replaced by demand for leisure traffic, some lost entirely to other jurisdictions

Year Rooms Rooms Available % Change Rooms Occupied % Change Occupancy Change (Pts) ADR % Change RevPAR % Change 2015 4336 1,582,640

• 750,278
• 47.4%
• $111.16
• $52.70
• 2016

4656 1,699,440 7.4% 662,648

• 11.7%

39.0%

• 8.4

$106.67

• 4.0%

$41.59

• 21.1%

Competitive Market Performance Results - Central Alberta Source: CBRE Hotels

• Highest occupancies in May, Jun, Nov in 2016
• Peak occupancy realized at different times throughout the

year for different communities:

• Olds & Lacombe County at peak in April
• Sylvan Lake in July
• Lowest occupancy during winter months (Dec, Jan, Feb)

22 CBRE TOURISM & LEISURE GROUP | CENTRAL ALBERTA TOURISM ALLIANCE

• The Sylvan Lake accommodation market is part of Red Deer County & Area, which

also includes Red Deer County, the City of Red Deer and Innisfail.

• Red Deer County & Area is host to 40 properties and 3,273 rooms (69% of Central

Alberta rooms supply).

• With 7 properties and 271 rooms, Sylvan Lake makes up 18% of Red Deer County &

Area properties and 8% of the rooms supply.

FIXED ROOF ACCOMMODATION INVENTORY – FIXED ROOF ACCOMMODATION INVENTORY – RED ED DEER DEER COUNTY COUNTY & AREA & AREA

Loc Location tion Property Property Na Name me Type Type Room Rooms Meeti Meeting Facilit Facilitie ies Re Restaurant aurant / / Lou Lounge Br Brea eakfa kfast t Ser Servery Pool Pool Best Western Plus Chateau Inn Sylvan Lake Hotel 72 x x x Comfort Inn & Suites Sylvan Lake Hotel 62 x x Edgewater Inn Sylvan Lake Motel 20 Lost Harbour Inn Sylvan Lake Motel 28 x Raccoon Lodge Motel Motel 28 Beachfront Resort Motel 20 Days Inn Sylvan Lake Hotel 41 x Tota Total S l Sylva lvan Lake Lake Ro Rooms

• ms

271 271 Proper erties es 7 Tota Total City l City of Re

• f Red

d De Deer Ro Rooms

• ms

2,093 ,093 Proper erties es 19 19 Total Innisf tal Innisfail ail Rooms

• oms

243 Proper erties es 5 Total Re tal Red De d Deer County County Rooms Rooms 666 Proper erties es 9 TOT TOTAL R AL RED DEER DEER COUN COUNTY TY & & AR AREA EA Room

• ms

3,273 Proper erties es 40 40

Sources: Central Alberta Features Inventory Database and CBRE Research

Syl Sylvan La Lake ke

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FIXED ROOF ACCOMMODATION INVENTORY MAP – FIXED ROOF ACCOMMODATION INVENTORY MAP – SYLVAN LAKE YLVAN LAKE

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Historic Market Historic Market Perform Performance nce

• Occupancy levels fell below 40%, while Average Daily Rate (ADR) dropped over 5% in the

Red Deer County & Area market, generating a 21% decline in RevPAR

• In 2015, the 41-room Days Inn opened in Sylvan Lake, along with a 100-room Microtel in

Gasoline Alley, followed by the renovation and rebranding of the Baymont Inn & Suites in Red Deer in 2016.

• Market segmentation for Red Deer County & Area is dominated by City of Red Deer hotels

and those in Gasoline Alley – with the greatest source of demand coming from the corporate market (45%); however, Sylvan Lake Sylvan Lake is predominantly a leisure market due to the lake itself.

• Sylvan Lake is very much a summer destination when leisure travel is at its peak.
• The Town enjoyed some corporate demand related to the energy sector and nearby

projects, however, much of that demand was lost with the economic downturn.

FIXED ROOF ACCOMMODATION HISTORIC MARKET FIXED ROOF ACCOMMODATION HISTORIC MARKET PERFORMANCE - PERFORMANCE - RED DEER COUNTY ED DEER COUNTY & AREA & AREA

Year Rooms Rooms Available % Change Rooms Occupied % Change Occupancy Change ADR % Change RevPAR % Change 2015 2929 1,069,085

• 489,024
• 45.7%
• $110.11
• $50.37
• 2016

3194 1,165,810 9.0% 446,111

• 8.8%

38.3%

• 7.5

$104.41

• 5.2%

$39.95

• 20.7%

Competitive Market Performance Results - Red Deer County Source: CBRE Hotels

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Central Alberta Market Projections Central Alberta Market Projections

• Provincial projections for growth in
• vernight visits to “Other Alberta”

range from 1.9%-2.3% over next 5 years.

• Strong basis for our projections for

demand growth in Central Alberta – where demand projected to grow of 5% in 2017, 2% in 2018, and 4% in 2019 (Canada Winter Games).

• Demand levels expected to return to

2015 levels by 2020.

FIXED ROOF ACCOMMODATION MARKET PROJECTIONS & FIXED ROOF ACCOMMODATION MARKET PROJECTIONS & IMPLICAT IMPLICATION IONS – – CENTRAL ALBERT ENTRAL ALBERTA REGION REGION

Albert rta 201 017 201 018 201 019 202 020 2021 Total ('000s overnight province visits) 15,018 15,370 15,694 16,044 16,365 3.6 2.3 2.1 2.2 2.0 Ca Calgar ary Total ('000s overnight city visits) 3,743 3,838 3,933 4,033 4,126 3.7 2.5 2.5 2.5 2.3 Ed Edmonton Total ('000s overnight city visits) 3,243 3,319 3,388 3,461 3,528 3.2 2.4 2.1 2.1 1.9 Other A r Albert rta Total ('000s overnight city visits) 8,032 8,213 8,373 8,550 8,711

• 2.3

1.9 2.1 1.9 Source: CBRE, The Conference Board of Canada, Fall 2017 Preliminary Outlook PROVINCIAL TRAVEL MARKET OUTLOOK

Actual Actual Forecast Projection 2015 2016 2017 2018 2019 2020 2021 Available Room Nights 1,582,640 1,699,440 1,721,952 1,731,195 1,731,195 1,731,195 1,731,195 Occupied Room Nights 750,278 662,648 697,426 711,374 739,829 750,187 765,191 Market O Occupancy 47% 7% 39% 41% 1% 41% 43% 43 43% 44% Demand Growth

• 11.7%

5.2% 2.0% 4.0% 1.4% 2.0% Market A Average D Daily Rate $111 $107 $1 $104 04 $1 $106 06 $1 $108 08 $110 $113 Rate Growth

• 4.0%
• 2.5%

2.0% 2.0% 2.0% 2.0%

Source: CBRE Hotels

Market Projections - Central Alberta Region

Implica Implications ions

• Strong community support and “need” for hotel development in Central Alberta.
• With seasonality of visitation and lack of significant corporate demand generators, none of the submarkets

generating strong enough occupancies to meet typical investor criteria (60%-65% occupancy).

• Municipalities need to pursue opportunities to increase Sunday to Thursday demand through other corporate

activity, additional government demand, and meetings and conferences and seminars – and continue promotion of locally based health and wellness, tourism attractions and events, and leisure based experiences.

26 CBRE TOURISM & LEISURE GROUP | CENTRAL ALBERTA TOURISM ALLIANCE

Market Projectio Market Projections

• No confirmed supply additions projected for Sylvan Lake; however, meetings are underway

with potential developers in Sylvan Lake regarding a potential hotel/conference facility.

• Based on YTD Sep 2017 results, market demand is projected to grow 4%, with both the City
• f Red Deer and Sylvan Lake experiencing moderate demand growth in 2017.
• Demand is projected to grow 2% in 2018 and a further 5% in 2019 (bolstered by the

Canada Winter Games in the City of Red Deer).

• In 2020, demand is projected to grow by a further 1% in consideration of overall improved

market conditions, with market occupancy reaching 42% by 2021.

• In 2017, market ADR is expected to drop to $100, however, with projections of 2.0%

annually between 2018 and 2021, market ADR is projected to reach $108 by 2021.

FIXED ROOF ACCOMMODATION MARKET PROJECTIONS – FIXED ROOF ACCOMMODATION MARKET PROJECTIONS – RED ED DEER COUNTY & AREA DEER COUNTY & AREA

Actual Actual Forecast Projection 2015 2016 2017 2018 2019 2020 2021 Available Room Nights 1,069,085 1,165,810 1,193,676 1,209,975 1,209,975 1,209,975 1,209,975 Occupied Room Nights 489,024 446,111 462,954 472,213 495,823 500,782 510,797 Mar Market Occ et Occupanc ncy 46% 38% 8% 39 39% 39% 9% 41% 41 41% 42% Demand Growth

• 8.8%

3.8% 2.0% 5.0% 1.0% 2.0% Market Market A Averag erage Daily Rat e Daily Rate $110 $104 104 $1 $100 00 $102 $1 $104 04 $10 $106 $108 Rate Growth

• 5.2%
• 4.0%

2.0% 2.0% 2.0% 2.0%

Source: CBRE Hotels

Market Projections - Red Deer County

NON-FIXED ROOF ACCOMMODATION NON-FIXED ROOF ACCOMMODATION MARKET MARKET

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Provincial Performance Provincial Performance Trends Trends

• Alberta offered 699 campgrounds and

47,491 campsites in 2015, for an average of 68 sites per campground = 17% of Canada’s campgrounds, and 11% of campsites

• Larger percentage of campers (13%) 65 years

and older in Alberta than in other provinces.

• RVs are most popular in Alberta and

Saskatchewan, as compared to tents, which are more popular in Ontario.

• Average number of trips taken by Alberta

campers was 5.6, compared to national average of 4.1; and they stayed longer – 14.8 nights, versus 13.9 camping nights.

• Most camping in Western Canada involves

RVs – many campsites are not equipped.

ALBERTA NON-FIXED ROOF ACCOMMODATION TRENDS ALBERTA NON-FIXED ROOF ACCOMMODATION TRENDS

Cam Camping Visitor ing Visitor Trends ends

• Most campers looking for full-service

sites with power, water and sewer hookups, and larger sites for RV trailers (50-amp)

• Increased interest in internet access,

equipment rentals and on-site retail.

• Provincial parks are seeing increased

demand from new Canadian immigrants to Alberta.

• Opportunity to provide Comfort

Camping in the form of platforms with tent set ups or yurts to cater to the “ready to camp”.

• Comfort camping also caters to winter

camping demand for visitors that would typically stay in fixed roof accommodations.

29 CBRE TOURISM & LEISURE GROUP | CENTRAL ALBERTA TOURISM ALLIANCE

 Central Alberta offers 49 municipal and privately-owned campgrounds, with an inventory of 3,605 campsites and 48 cabins – of which 26% are unserviced, 31% semi-serviced, and 43% are full-service sites.  From a provincial stand-point, Central Alberta represents 5% of the total unserviced sites in Alberta and 8% of the province’s total campsite supply.

NON-FIXED ROOF ACCOMMODATION INVENTORY – NON-FIXED ROOF ACCOMMODATION INVENTORY – CENTRAL ALBERTA REGION CENTRAL ALBERTA REGION

Source: CBRE Limited

Commu Communit ity/A y/Area rea # of P

• f Propert
• perties

es # of # of Camps Campsites # o # of Cabins Cabins Total Units l Units % Av Avg C Campsi site tes/ s/ Campg Campground

• und

Red Deer County & Area 16 1,227 12 1, 1,23 239 34% 77 Lacombe County & Area 12 492

• 49

492 13% 41 Mountain View County & Area 7 596

• 59

596 16% 85 Clearwater County & Area 14 1,290 36 1, 1,32 326 36% 92 TOTA TAL 49 3,6 ,605 05 48 48 3, 3,65 653 100% 74 Summary of Summary of Invent Inventory by Commu

• ry by Communit

ity/A y/Area rea

Com Communit ity/A y/Area rea # U # Unse serv rvice iced Si Sites # # of S f Sem emi- i- Servic Serviced ed Sit Sites # # of F f Full ll Servic Serviced ed Sites Sites Tot Total l Ca Camp mpsites Red Deer County & Area 102 148 977 1,22 1,227 Lacombe County & Area 187 265 40 492 492 Mountain View County & Area 306 50 240 596 596 Clearwater County & Area 356 654 280 1,29 1,290 TOTAL 951 51 1,117 1,117 1,5 1,537 3,60 ,605 % 26% 31% 43% 100 100% Su Summary of Invent mmary of Inventory b

• ry by Commu

Communit nity/Area rea

30 CBRE TOURISM & LEISURE GROUP | CENTRAL ALBERTA TOURISM ALLIANCE

NON-FIXED ROOF ACCOMMODATION INVENTORY MAP – NON-FIXED ROOF ACCOMMODATION INVENTORY MAP – CENTRAL ALBERTA REGION CENTRAL ALBERTA REGION

Source: CBRE Limited

31 CBRE TOURISM & LEISURE GROUP | CENTRAL ALBERTA TOURISM ALLIANCE

• Central Alberta market performs

in line with the Province, with 56%

• ccupancy estimated for 2017;

average of 195 operating days.

• Busiest on July and August

weekends with average occupancy

• f 84%, and weekdays at 68%.
• Approximately 43% of demand

derived from transient use; 57% from seasonal demand.

• 73% of demand from domestic

leisure visitors, and 19% from out-

• f-province visitors.
• In 2017, average transient rental

rate is $29, while seasonal rental rates average $17 per day.

• Decline in oil/

Decline in oil/gas gas production crew production crew bu busin siness ss, but , but leisu leisure demand demand has has increased – increased – particularly families. articularly families.

NON-FIXED ROOF ACCOMMODATION NON-FIXED ROOF ACCOMMODATION MARKET PERFO MARKET PERFORMANCE MANCE

• CENTRAL ALBERTA REGION

ENTRAL ALBERTA REGION

Co Competitive Ca etitive Campgro ground M nd Market P rket Perfo rforma mance nce Re Results lts Cent Central ral Alber Alberta Facilities ilities Total 2017 E 17 E Campg Campground

• unds

49 Total Campsi Total Campsites 3,6 ,605 10 100% # of # of Cabins Cabins 48 Avg Operati vg Operating g Days Days 195 195 Utiliz lizatio ion Occupancy Operati Operating Peri g Period

• d

56% 56% Demand Demand Occupi Occupied Campsi Campsite Nights Nights Estimated Transient Occupied Campsites Nights 167,600 43% Estimated Seasonal Occupied Campsite Nights 224,200 57% Total Occupi Total Occupied Camps Campsite Nights Nights 39 391,800 100% Seg Segme ment ntat ation Total

• tal

Domestic Albertans 73% Out of Province Tourists 19% Groups 2% Crew/Other 5% Total Total 100% Rev Revenu nue Total

• tal

Avg Transient Rental Rate Per Day $29 Avg Seasonal Rental Rate Per Day $17

Source: CBRE Limited

32 CBRE TOURISM & LEISURE GROUP | CENTRAL ALBERTA TOURISM ALLIANCE

NON-FIXED ROOF ACCOMMODATION INVENTORY - NON-FIXED ROOF ACCOMMODATION INVENTORY - RED ED DEER DEER COUNTY & COUNTY & AREA AREA

Source: CBRE Limited

• Red Deer County & Area offers 16 campgrounds, ranging in size from 23 to 207

sites (average of 77 sites per campground), and 12 cabins.

• Operating seasons range from 124-193 days per year.
• Three properties in Sylvan Lake offer 282 campsites, representing 23% of all sites in

the submarket.

Community Community Ten enting ng Tota Total # of # of Si Sites # o # of Cabins Cabins Red Deer Lions Municipal Campground City of Red Deer Serviced Campground x 13 138 public/private Seasonal - May 1 to Sept 30 Westerner Campground City of Red Deer Serviced Campground 98 98 municipal Year Round Discovery Wildlife Park Campground Innisfail Serviced Campground x 69 69 private Seasonal - May 1 to Oct 9 Sylvan Lake RV Park Sylvan Lake RV Park 88 88 private Seasonal - May 1 to Sept 30 Meadowlands RV Park Sylvan Lake Serviced Campground x 95 95 private Seasonal - May 1 to Oct 15 Sunny Siesta RV Park & Campground Sylvan Lake RV Park 99 99 private Seasonal - Apr 1 to Oct 1 Fawn Meadows RV Park Red Deer County Serviced Campground 32 32 2 private Year Round Spruce Bay Resort Red Deer County Serviced / Unserviced 70 70 10 private Seasonal - May 15 to Sept 15 River Ridge RV Park and Campground Red Deer County RV Park 68 68 private Seasonal - May 1 to Sept 30 Anthony Henday Campground Red Deer County Serviced Campground x 42 42 municipal Seasonal - May 1 to Oct 15 Bowden Heritage Rest Area Red Deer County Serviced Campground 24 24 municipal Seasonal - May to Oct Dickson Leisure Grounds Red Deer County Serviced Campground 20 207 municipal Seasonal - Apr to mid Oct Elnora Campground Red Deer County Serviced Campground x 23 23 private Seasonal - May to Oct RV There Yet Campground Red Deer County Serviced Campground x 78 78 private Year Round Sylvan Lake Golf & Country Club 19th Hole RV Campground Red Deer County Serviced Campground 30 30 private Seasonal Trenville Park Red Deer County Unserviced Campground x 66 66 municipal Seasonal - May 1 to Sept 30 TOT TOTAL RED DEE L RED DEER COUNTY & COUNTY & AREA AREA Uni Units 1,227 27 12 Prop Properties es

Sources: Central Alberta Features Inventory Database and CBRE Research

16 16 RED DEER COUNTY & RED DEER COUNTY & AREA CA AREA CAMP MPGROUND INVE OUND INVENTORY NTORY Camp Campgro ground Ty nd Type Si Sites tes Seasona asonal / / Year R Year Round

Clas assification

• n

33 CBRE TOURISM & LEISURE GROUP | CENTRAL ALBERTA TOURISM ALLIANCE

NON-FIXED ROOF ACCOMMODATION INVENTORY MAP - NON-FIXED ROOF ACCOMMODATION INVENTORY MAP - RED ED DEER COUNTY DEER COUNTY & AREA & AREA

Source: CBRE Limited

34 CBRE TOURISM & LEISURE GROUP | CENTRAL ALBERTA TOURISM ALLIANCE

NON-FIXED ROOF ACCOMMODATION MARKET NON-FIXED ROOF ACCOMMODATION MARKET PERFORMANCE - PERFORMANCE - RED DEER COUNTY RED DEER COUNTY & AREA & AREA

Source: CBRE Limited

• Campgrounds in Red Deer County &

Area achieve comparable occupancies to Central Alberta overall at 55% estimated for 2017.

• This area has the largest supply of full-

service campsites in the region (64%).

• 60% of demand is generated by

seasonal rentals.

• July/August weekends are the busiest

periods (83%); spring and fall periods see occupancies between 40-50%.

• 75% of demand derives from

Calgary/Edmonton, with out of province tourists mostly coming from Saskatchewan; and US visitors stopping enroute to Alaska.

• In 2017, average transient rental rate

is $36, while seasonal rental rates average $21 per day.

Faci Facilitie lities Tot

• tal

al 2017 E E Cam Campgrounds

• unds

16 # of Unserviced Sites 102 8% # of Semi Serviced Sites 148 12% # of Full Serviced Sites 977 80% Tot Total Cam Campsites 1,22 ,227 100% 100% # o # of Cab Cabins 12 12 Av Avg O Oper eratin ing Days ys 201 Trans Transient U t Utili ilization zation Occ Occupancy pancy Weekdays May - June 13% Wknds May - June 53% Weekdays July - August 67% Weekends July-August 83% Weekdays September - October 32% Wknds September - October 44% Balance of Year 15% Utili ilization zation Occu Occupancy pancy Seasonal Rentals 73% Ope Operat ating Pe g Period riod 55% 55% De Demand nd Occ Occupie pied Camps Campsite te Nights Nights Estimated Transient Occupied Campsites Nights 55,400 40% Estimated Seasonal Occupied Campsite Nights 81,700 60% Tot Total Occupied ed C Campsi site N Nights 13 137,1 7,100 100% 100% Segmentati tion

• n

Tota tal Domestic Albertans 75% Out of Province Tourists 16% Groups 1% Crew/Other 8% Tot Total 100 100% Re Reve venue nue Total Avg Transient Rental Rate Per Day $36 Avg Seasonal Rental Rate Per Day $21

Source: CBRE Limited

Competitiv mpetitive Campground M e Campground Mark rket Per Performance

• rmance Re

Results Red D Deer eer County & & A Area ea

CENTRAL ALBERTA ACCOMMODATION CENTRAL ALBERTA ACCOMMODATION STRATEGIC FRAMEWORK STRATEGIC FRAMEWORK

36 CBRE TOURISM & LEISURE GROUP | CENTRAL ALBERTA TOURISM ALLIANCE

STRATEGIC CONTEXT STRATEGIC CONTEXT

• Since 2015, Alberta economy has felt

the impacts of the downturn in oil prices, which has in turn resulted in a decline in room demand and average daily rates.

• Central Alberta market is not expected

to make any strides in 2017, but strong growth expected for GDP in 2018 and corporate demand for accommodations is expected to follow suit.

• Accommodation sector will continue to

face challenges in performance in the short term, unless other strategies are put in place to increase year-round

• vernight demand.
• The Central Alberta Accommodation

Central Alberta Accommodation Strategic Framework Strategic Framework includes a vision,

• bjectives, and action plans for the

Alliance to implement to grow the regional accommodation market in the next 5 years.

Vision Objectives Action Plan Implementa- tion Performance Measurement

37 CBRE TOURISM & LEISURE GROUP | CENTRAL ALBERTA TOURISM ALLIANCE

VISION & VISION & STRATEGIC OBJECTIVES STRATEGIC OBJECTIVES

Vision: Vision:

• To set the foundation for diversification and growth in Central Alberta

Tourism Region’s accommodation sector in the short to mid-term, by making the region attractive to all segments of accommodation demand, and ensuring the Region is attracting investment for the longer-term. Strategic Objectives Strategic Objectives 1. Encourage diversification of accommodatio diversification of accommodation demand. n demand. 2. Develop linkages between products & linkages between products & experiences experiences across the Region with the highest potential to generate overnight demand. 3. Cultivate a culture of support for investment support for investment attraction into accommodation supply. 4. Encourage improved quality and consistency of quality and consistency of accommodation accommodation product across the region.

38 CBRE TOURISM & LEISURE GROUP | CENTRAL ALBERTA TOURISM ALLIANCE

Central Alberta Central Alberta Partner Com Partner Community nity categorizatio categorization (from (from DMP): DMP):

Gateways Gateways – City City of

• f Red Deer, Rocky Mountain House, Olds

Red Deer, Rocky Mountain House, Olds

• Communities that most visitors to the region will travel through; critical mass of experiences, products and

accommodations, enabling longer-term trips; with potential to expand trips to nearby Hubs.

Hubs Hubs – Sylvan Lake, City – Sylvan Lake, City of

• f Lacomb

Lacombe, Innisfail e, Innisfail

• Communities that provide a smaller mix of experiences, attractions, accommodations and amenities,

generating shorter-term trips; often provide a range of fixed-roof and non-fixed roof accommodations.

Tourism Servi Tourism Service Centr e Centres s – Blackfalds lackfalds

• Communities focused on “pass-through” travelers; typically provide business-focused amenities and a

limited range of accommodations.

Counties Counties – Red Deer ed Deer, Clearwa , Clearwater er, Lacomb , Lacombe, Mounta e, Mountain View in View

• Larger geographic areas comprising primarily rural communities; limited fixed roof accommodations and a

larger base of non-fixed roof accommodations, but limited tourism infrastructure.

Action Plan Parameters: Action Plan Parameters:

• Action Plans for each objective include: recommended action areas and timing (Short-Term = within 6

months-2 years, Medium-Term = within 2-5 years; Long-Term = 5 years +).

• Where relevant, time of year has been included in relation to specific action items.

ACTION PLAN PARAMETERS ACTION PLAN PARAMETERS

39 CBRE TOURISM & LEISURE GROUP | CENTRAL ALBERTA TOURISM ALLIANCE

Background Background

• Targeted marketing is required in order to meet shifting demand patterns

in the region - biggest shift is decline of Corporate/Commercial segment.

• Opportunity to capitalize and grow new or untapped sources of demand,

and diversify existing sources.

• Example: target the VFR market for tourism, and local/regional associations for

corporate and meeting/conference demand

• Opportunity to capitalize on regional seasonality
• Example: build Meeting/Conference demand in peak conference months in

Spring and Fall, and Leisure/Tourist demand during peak Summer and Winter tourism months.

• Need to ensure alignment with economic development strategies across

the region.

OBJECT OBJECTIVE #1 IVE #1 - ENCOURAGE DIVERSIFICATION OF ACCOMMODATION DEMAND

40 CBRE TOURISM & LEISURE GROUP | CENTRAL ALBERTA TOURISM ALLIANCE

OBJECT OBJECTIVE #1 IVE #1 - ENCOURAGE DIVERSIFICATION OF ACCOMMODATION DEMAND

Demand Demand Categor Category Action Area Action Area Recommended commended Timeli meline / / Season Season Meeting / Meeting / Conference Conference Work with accommodation partners & event centres to develop meeting planner packages to target SMERF (social, military, educational, religious, fraternal) groups,

• ffering discounted rates over larger urban centres and resort destinations (i.e.

Calgary, Edmonton, Banff), and capitalize on the region’s central location. Short-term; Spring/Fall Meeting / Meeting / Conference Conference Work with accommodation partners to target meetings and conferences focused on core industries / sources of existing demand (i.e. forestry, agriculture, oil/gas, mining, medical marijuana, etc.) and growing international research areas (i.e. technology relevant to core industries). Medium-Term; Spring/Fall Meeting / Meeting / Conference Conference Work with provincial meeting planners to target small meetings and corporate retreats that incorporate existing tourism demand generators:  Trails  Culinary tourism  Nature & adventure  Historic sites Medium-Term; year-round Meeting / Meeting / Conference Conference Research the potential to develop a Convention Development Fund to pool funding resources to target provincial and/or national conventions that can benefit larger portions of the Region Long-Term; year- round

41 CBRE TOURISM & LEISURE GROUP | CENTRAL ALBERTA TOURISM ALLIANCE

OBJECT OBJECTIVE #1 IVE #1 - ENCOURAGE DIVERSIFICATION OF ACCOMMODATION DEMAND

Le Leisure / / To Tourist Continue to align with Travel Alberta’s 2022 Growth Strategy and look for opportunities to “drive destination awareness and target high-potential travellers”; itinerary building; drawing groups from Edmonton and Calgary, and tourists visiting Rockies or enroute to Alaska, with common interests, e.g.: Indigenous tourism, Wildlife viewing, Star gazing and storytelling. Short-Term; Summer/ Winter Le Leisure / / To Tourist Consider development of a social media campaign to promote local/regional resident awareness of tourism products and experiences across Central Alberta, to generate interest in the visiting friends and relatives (VFR) market. Short-Term; year-round Le Leisure / / To Tourist Develop a task-force to grow local festivals and events, especially those that highlight common regional themes (e.g. culinary tourism, nature & adventure) and the potential to generate year-round overnight visitation (e.g. farmers markets and winter/Christmas markets), in conjunction with provincial partners – in order to make use of their web and marketing tools. Medium-Term; year-round Le Leisure / / To Tourist Consider developing a marketing campaign focused on the upcoming 2019 Canada Winter Games, i.e. “get to know Central Alberta,” using accommodation base in Gateway communities to explore winter tourism experiences (i.e. ice fishing, snowmobiling, skiing). Short-term; Winter

Deman Demand Category Category Action Area Action Area Recommende Recommended Timel Timeline ne / / Seaso Season

42 CBRE TOURISM & LEISURE GROUP | CENTRAL ALBERTA TOURISM ALLIANCE

OBJECT OBJECTIVE #1 IVE #1 - ENCOURAGE DIVERSIFICATION OF ACCOMMODATION DEMAND

Demand Demand Category Category Action Action Area Area Recommended Recommended Timeline line / Season son

Corpor Corporate / e / Commer Commercial Work with accommodation partners to review lists of corporate accounts and determine whether there are any new contacts / other areas that CATA partners can draw on; notable examples include:  Professional associations – provincial/regional chapters (i.e. Central Alberta Bar Society)  University / College Faculty groups  Central Alberta Access Prosperity  Community Futures Central Alberta  Alberta Innovates  Chambers of Commerce Short-Term; year-round Government Government / Othe / Other Ensure government groups and companies with crews travelling through the Province have access to lists of accommodations at various price points across the Region Medium-Term; year-round

43 CBRE TOURISM & LEISURE GROUP | CENTRAL ALBERTA TOURISM ALLIANCE

Background Background

• Opportunity to enhance and develop linkages around existing products

and experiences in the Region with the highest potential to generate

• vernight stays in the region, and higher spending from visitors.
• Focus to build on existing products that are either already drawing visitors

from outside the Region, or have the potential to induce new demand

• Key demand segments: Meeting/Conference and Leisure/Tourist
• Opportunity to encourage regional marketing of packages that cater to

specific leisure tourism markets, building on PRIZM target segments, i.e. ATV & auto touring routes, adventure tourism routes, hiking/quad trails; and ensure appropriate accommodations are featured along these routes

OBJECTI OBJECTIVE #2 E #2 – DEVELOP LINKAGES BETWEEN PRODUCTS & EXPERIENCES WITH THE HIGHEST POTENTIAL TO GENERATE OVERNIGHT DEMAND

44 CBRE TOURISM & LEISURE GROUP | CENTRAL ALBERTA TOURISM ALLIANCE

Pr Product/Experience Groups Groups Action Action Items Items Recommended ecommended Ti Timeline / Season Agri-to Agri-tourism rism

• Build inventories of connections between agriculture, technology and agri-tourism

(i.e. farmers markets, u pick, and attractions )

• Build on trend of using authentic / unique venues for business and social events

(i.e. old farmhouses for weddings) Short-term; Spring and Fall Culina Culinary tourism y tourism

• Develop inventories to promote culinary tourism across the region (i.e.

restaurants, breweries and farmers markets), especially for groups Short-term; year- round Multi- Multi-day festiva y festivals & s & events events

• Build on existing festivals and events that are drawing people to the region and

look for ways to expand them across the Region Short-term; Spring- Fall Sport tourism and Sport tourism and training cam aining camps

• Promote opportunities to submit joint bids for high-profile tournaments, training

camps, and AGM’s for sport groups (i.e. lacrosse, soccer, hockey, baseball); promote high performance training camps at new sporting facilities across the region. Medium-term; year-round Winte nter adventure adventure tourism & tourism & events events

• Look for opportunities to promote Nordic ski and other low impact adventure

travel in Lacombe, Mountain View and Red Deer County

• Build on and package Christmas markets and other winter festivals, along with

low-impact winter activities Medium-term; winter Trade Shows ade Shows

• Delegate a subcommittee to review trade shows that Central Alberta Tourism

Alliance should attend, including those that meet interests of the top 10 PRIZM5 target markets –i.e. boat, cottage, garden, motorcycle, RV , sportsman shows.

• Research additional opportunities to partner with Travel Alberta at relevant trade

shows, i.e. Travel Alberta’s scholarship program for Canada’s West Marketplace Short-term; annual

OBJECTI OBJECTIVE #2 E #2 – DEVELOP LINKAGES BETWEEN PRODUCTS & EXPERIENCES WITH THE HIGHEST POTENTIAL TO GENERATE OVERNIGHT DEMAND

45 CBRE TOURISM & LEISURE GROUP | CENTRAL ALBERTA TOURISM ALLIANCE

Background Background

• Sylvan Lake has the opportunity to engage and attract potential investors,

developers, and strategic partners – important to educate municipal stakeholders to ensure sustainable success.

• Potential exists for reinvestment and expansion in accommodation supply.
• Opportunity to develop a mechanism to inform partner jurisdictions of new

supply already entering the market.

• Suggestion to host stakeholder workshops across the region:
• To introduce the results of the Central Alberta Tourism Alliance Accommodation Strategy;
• To advocate accommodation development benefits at the Regional and Municipal

Government level; and

• To describe specific findings for the accommodation market within each relevant

community.

OBJECT OBJECTIVE #3 IVE #3 – CULTIVATE A CULTURE OF SUPPORT FOR INVESTMENT ATTRACTION INTO ACCOMMODATION SUPPLY

46 CBRE TOURISM & LEISURE GROUP | CENTRAL ALBERTA TOURISM ALLIANCE

Market Market Action Areas Action Areas Rec ecommend

• mmended

ed T Timel meline / e / Season Season Fixed Roof Look for opportunities to introduce the Accommodation Strategy and specific community findings to relevant municipal Economic Development and Planning departments. Short-term; year-round Fixed Roof Plan quarterly meetings with Planning departments to monitor potential sites for accommodation development. Short-term; year-round Fixed Roof Review local planning policies, zoning and other By-Law amendments to ensure high potential sites under consideration for development permit hotel development. Medium-term; year-round Fixed Roof Continue to maintain regional accommodation supply database, building on data provided by CBRE project team (recommend semi-annual updates). Short-term; year-round

OBJECT OBJECTIVE #3 IVE #3 – CULTIVATE A CULTURE OF SUPPORT FOR INVESTMENT ATTRACTION INTO ACCOMMODATION SUPPLY

47 CBRE TOURISM & LEISURE GROUP | CENTRAL ALBERTA TOURISM ALLIANCE

• The following sites were identified for potential accommodation development/expansion:

High P High Potential F tential Fixed R xed Roof

• of Site(s) /

Site(s) / Expansions Expansions High P High Potential Non-F tential Non-Fixed R xed Roof

• of Site(s) /

Site(s) / Expansions Expansions La Lakefront P Park – Town currently working on investment attraction strategy that includes a hotel/conference centre at the waterfront. Wa Waterford S Station – residential / commercial project that may incorporate a mixed-use accommodation component. Po Pogadl Pa Park – Town has future plans for Pogadl Park (60-acre site with future sports park and field house), which will include RV sites.

OBJECT OBJECTIVE #3 IVE #3 – CULTIVATE A CULTURE OF SUPPORT FOR INVESTMENT ATTRACTION INTO ACCOMMODATION SUPPLY

48 CBRE TOURISM & LEISURE GROUP | CENTRAL ALBERTA TOURISM ALLIANCE

Fixed Roof Market Fixed Roof Market Supply Development Considerations: Supply Development Considerations:

 Investigate municipal interest in exploring opportunities for strategic partnerships to attract a potential hotel developer – Public Priv Public Private ate Partnerships rtnerships – to either reduce the development costs or enhance the cash flow of a proposed hotel operation (e.g., deferred property taxes).  Consider opportunities for mixed-use developments mixed-use developments with accommodation, such as residential, senior residences, retail and office space.  Consider offering unique regionally inspired food & regionally inspired food & beverage offerings beverage offerings at hotel properties, and offer fundraising events, and other social

• pportunities.

OBJECT OBJECTIVE #3 IVE #3 – CULTIVATE A CULTURE OF SUPPORT FOR INVESTMENT ATTRACTION INTO ACCOMMODATION SUPPLY

49 CBRE TOURISM & LEISURE GROUP | CENTRAL ALBERTA TOURISM ALLIANCE

Non-Fixed Roof Market Supply Non-Fixed Roof Market Supply Development Consideratio Development Considerations: ns:

• Expand underutilized RV sites and campgrounds
• Build awareness for operators and potential developers on visitor interests

OBJECT OBJECTIVE #3 IVE #3 – CULTIVATE A CULTURE OF SUPPORT FOR INVESTMENT ATTRACTION INTO ACCOMMODATION SUPPLY

Trend ends / Interest nterest Areas Areas Potent

• tential

al Soluti Solution

• ns (Where

Where appli applicab able) le)

• Current market segmentation: 60% families or

couples, 30% leisure groups/reunions, 10% corporate/crew. Many campers are looking for more activities / opportunities to meet centrally as groups.

• When considering expansions or new campground

additions, ensure development of large fire pits and landscaping that allows for centralized activities, and

• ther facilities to accommodate the growing leisure

market.

• More large trailers, less tenting across Central

Alberta; typically, higher quality trailers with more power (i.e. 50-60 amps) - Most campgrounds offer 30-amp power source and sites are small.

• CATA partners and private developers could look at
• pportunities to improve servicing at existing facilities,

and encourage developers to make adjustments to sites to accommodate larger vehicles via landscaping.

• Growing interest in comfort camping and

glamping experiences, notably within Alberta (86%), as well as the Chinese and German markets.

• Work with Provincial partners (i.e. Alberta Parks) to

identify key sites that have the potential for glamping and winter tourism activities, and target relevant geographic markets.

• Trends towards new Canadians experimenting

with camping.

• Develop a pricing strategy to accommodate different

camping experiences and offer equipment rentals.

50 CBRE TOURISM & LEISURE GROUP | CENTRAL ALBERTA TOURISM ALLIANCE

Background Background

• In addition to potential for new supply in the mid to long-term, CATA

partners identified a number of opportunities for reinvestment and expansion of current supply.

• Opportunities to offer education - to ensure existing accommodation
• perators have the right tools and resources at their disposal.
• Central Alberta has some high-quality accommodations, but many that are

considered average, or below standard.

• Opportunity to create a ‘culture of quality’ for accommodation products

from both a supply and demand perspective:

• A quality shift – to create more outstanding offerings that bring more visitors back

to the area to stay overnight.

OBJE OBJECTI CTIVE # # 4 4 – ENCOURAGE IMPROVED QUALITY & CONSISTENCY OF ACCOMMODATION PRODUCT ACROSS THE REGION

51 CBRE TOURISM & LEISURE GROUP | CENTRAL ALBERTA TOURISM ALLIANCE

Action Item Action Item Ti Timing Conduct research into third-party self-assessment tools and other educational resources for operators to improve their products, and potentially diversify their offerings for a broader demand base. Short-term Investigate the availability of any capital funding programs which would be eligible for improvements and quality upgrades to small to medium sized accommodation properties (i.e. Community Futures). Short-term Provide support for small to medium sized operator business planning and proposal writing. Medium-term Supply operators with details surrounding the benefit of upgrading quality and the information they need to start the process, i.e. regional newsletter for operators. Medium-term Research opportunities to support or deliver a quality enhancement programs for operators and communities, such as:  Community tourism assessment program;  Customized, one-on-one business improvement and enhancement advice and mentoring

• pportunities;

 Formalized peer to peer mentoring;  Market readiness criteria-based approach for operator involvement in product development initiatives;  Criteria-based quality upgrade initiative through a key supplier partnership or product affiliation program;  Industry-wide use of TripAdvisor.  Programs to encourage operators to exceed consumer expectations. Medium-term

OBJE OBJECTI CTIVE # # 4 4 – ENCOURAGE IMPROVED QUALITY & CONSISTENCY OF ACCOMMODATION PRODUCT ACROSS THE REGION

NEXT STEPS NEXT STEPS

53 CBRE TOURISM & LEISURE GROUP | CENTRAL ALBERTA TOURISM ALLIANCE

NEXT STEPS NEXT STEPS

• Implementation of the Accommodation Strategic

Framework will set the foundation for diversification and growth in Central Alberta Tourism Region’s accommodation sector in the short to mid-term.

• It is recommended that the partners work together to

establish a Strategic Action Framework to follow, to ensure continued progress towards CATA’s overall goals and

• bjectives.