Ramada Hotel and Suites

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District of Squamish
Community Accommodation Analysis and Strategy
April 2005
Grant Thornton LLP
Chartered Accountants
Management Consultants
December 20, 2004
49–4092
Ms. Lee A. Malleau
Economic Development Officer
The District of Squamish
37944 2nd Avenue
Squamish, British Columbia
V0N 3G0
Dear Ms. Malleau:
Re: Community Accommodation Analysis and Strategy
In accordance with the terms of our engagement, we have completed the Community Accommodation
Analysis and Strategy for the District of Squamish.
If we may be of assistance in the interpretation or application of our findings or in the furtherance of this
project, please contact us at your convenience.
Yours very truly,
GRANT THORNTON LLP
Per:
Doug Bastin, CMC
Partner
P.O. Box 11177, Royal Centre
Suite 2800
1055 West Georgia Street
Vancouver, British Columbia
V6E 4N3
T (604) 687-2711
F (604) 685-6569
E Vancouver@GrantThornton.ca
W www.GrantThronton.ca
Canadian Member of Grant Thornton International
December 2004
Contents
Executive Summary ......................................................................................................................1
Introduction .................................................................................................................................1
Project Scope...............................................................................................................................1
Accommodation Performance Trends.........................................................................................1
Accommodation Supply -- Squamish .........................................................................................2
Accommodation Demand -- Squamish .......................................................................................2
Accommodation Development Strategy .....................................................................................2
Timing and Implementation ........................................................................................................4
Introduction...................................................................................................................................6
Background .................................................................................................................................6
Scope of Engagement..................................................................................................................7
Accommodation Trends ...............................................................................................................8
Introduction .................................................................................................................................8
Accommodation Types ...............................................................................................................8
Accommodation Demand Trends................................................................................................9
Accommodation Performance Trends – North America...........................................................10
Accommodation Performance Trends – BC and Regional .......................................................12
Conclusions ...............................................................................................................................15
Accommodation Supply – Squamish.........................................................................................16
Introduction ...............................................................................................................................16
Accommodation Supply Overview ...........................................................................................16
Bed and Breakfasts....................................................................................................................17
Hotels and Motels .....................................................................................................................19
Hostels.......................................................................................................................................20
Lodges, Resorts and Cabins ......................................................................................................21
Campgrounds ............................................................................................................................21
Specialized Accommodation.....................................................................................................22
Proposed Accommodation Development..................................................................................23
Conclusions and Gap Analysis..................................................................................................24
Accommodation Supply-Demand Analysis...............................................................................28
Introduction ...............................................................................................................................28
Historical Performance..............................................................................................................28
Future Performance...................................................................................................................32
Projected Market Performance..................................................................................................37
Supply-Demand Analysis and Conclusions ..............................................................................38
December 2004
Accommodation Enhancement and Development Strategy ....................................................40
Introduction ...............................................................................................................................40
Key Assumptions ......................................................................................................................40
Accommodation Development Recommendations ...................................................................40
Timing and Implementation ......................................................................................................44
Appendices...................................................................................................................................49
Appendix A:
Appendix B:
Appendix C:
Appendix D:
Detailed Accommodation Inventory ..................................................................50
Supply- Demand Analysis ..................................................................................51
Inventory of Tourism Product ............................................................................56
Sample Bed & Breakfast Guidelines/Policies ....................................................58
December 2004
1
Executive Summary
Introduction
The District of Squamish is currently undergoing a transition from a resource based to a more
diversified economy, with tourism development as a primary focus. To assist the area in further
establishing itself as a thriving tourism destination, the District and the Community Futures
Development Corporation of Howe Sound (the “CFDC”) engaged Grant Thornton LLP (“Grant
Thornton”) to complete a Community Accommodation Analysis and Strategy. The study’s Executive
Summary is presented below.
Project Scope
The scope of this project included:
Conduct an inventory of existing accommodation products in the Squamish area.
Examine trends and influences in the accommodation sector world-wide, in the Pacific
Northwest and in particular along the Sea-To-Sky Corridor.
Investigate opportunities and make recommendations on an appropriate mix of
accommodation products that will provide a well-balanced sector in the community and
which can be supported by the marketplace over the long-term.
Provide a strategy for attracting suitable hotel companies/investors.
Describe appropriate geographic locations inside the District that would best support the
targeted mix of providers and how they will be integrated, including direction on how to
manage bed and breakfast growth within the community through appropriate guidelines/
policy/legislation.
Accommodation Performance Trends
While global tourism and accommodation performance declined in the two years following the
terrorist attacks of September 11th; recent statistics indicate the sector is rebounding. In particular,
within British Columbia (“BC”), the downtown Vancouver, Abbottsford/Chilliwack and Kelowna
markets have all registered significant increases in revenue per available room (“REVPAR”) over
2003. This turn-around in performance is a positive sign for accommodation properties throughout
the province, including Squamish.
December 2004
2
Accommodation Supply -- Squamish
Over the last ten years, the Squamish region’s accommodation sector has diversified in response to
market demand and the presence of new residents in the Squamish area who have developed
different types of accommodation. This has included the development of a strong bed and breakfast
(“B&B”) sector, particularly in the Garibaldi Highlands residential area and the emergence of
specialized accommodation (e.g., unique outdoor-oriented and nature-based accommodation).
Several of the more traditional hotel/motel properties in Squamish are older and are not well
maintained. These properties have sustained market share in the budget market segment due
primarily to competitive pricing; the traditional overnight stay market for Squamish has typically
sought inexpensive accommodation with limited facilities. However, the condition of many of these
properties is not appealing to new markets that are showing an interest in the region. Approximately
four to five of these older properties are expected to exit the market as land prices in the region
continue to increase. This anticipated reduction in room supply will provide opportunities to
develop new and different accommodation properties in the region, which could better meet market
expectations.
Accommodation Demand -- Squamish
Accommodation demand in Squamish has evolved from serving employees of industrial businesses,
who typically required basic accommodation, to a more sophisticated visitor who requires higherend accommodation, with recreation facilities and food and beverage services. This type of hotel/
motel property is currently lacking in the region; this presents an opportunity for developers/
investors. With regard to capacity, in planning for the future, market analysis conducted for this
study indicates that the region will be able to support 265 to 365 additional hotel/motel units by
2010.
An analysis of the different types of accommodation revealed that the B&B sector is growing, with a
solid demand base. Some of the area’s B&B properties have experienced difficulty in the past two
years, but, overall, this type of accommodation is well suited to the region and to segments of the
leisure market it currently attracts. Nature based resorts, lodges and cabins are also well suited to
this region; the current demand for this type of accommodation is strong.
Accommodation Development Strategy
Squamish currently lacks a distinct reputation as a tourist destination. Even though its profile will be
increased through its strategic location between Whistler and Vancouver for the 2010 Winter
Olympics Games, it still is not viewed as an ideal location for tourism investment. Further
development of the town’s basic infrastructure, its tourism product and branding is necessary in
order to begin attracting significant accommodation investment.
Recommendations designed to further develop the area’s accommodation sector are as follows.
December 2004
3
1. Development of a good quality hotel located on or near Highway 99. Given the increased
traffic flows as a result of the Sea-to-Sky Highway improvements, hotel/motel properties
located on the highway will have excellent visibility.
2. Development of a unique downtown hotel that complements the waterfront development.
It is recommended that the hotel have a theme (e.g., railway) and potentially include
conference/meeting facilities.
3. Development of a nature-based lodge or resort. The region is attractive for nature-based
lodge or resort development. However, given that the market for this type of development is
quite specialized and not typically high-volume, its future development should be limited. Grant
Thornton has recommended the development of one higher end property, in the short term.
4. Development of an additional campground facility. Additional campground facilities are
needed in the region. One new campground is expected to enter the market in 2005. It is
recommended that the District monitor the performance of the new campground and the
existing campgrounds and, if demand is still outpacing supply, promote the development of an
additional campground over the next five years.
5. Coordinated tourism marketing and product quality initiatives. At the time of report
writing, the region did not have coordinated tourism marketing programs. Individual properties
are responsible for their own marketing. Some have experienced success, while others have
struggled to effectively market their businesses. In order to maximize the potential of existing
properties, the District needs to introduce and/or support coordinated marketing efforts. With
regard to standards in accommodation quality, the District and the industry can initiate
programs to improve overall product quality. Possible initiatives related to marketing and
product quality are as follows:
Encouraging coordination of accommodation marketing for the region, through various
partnerships and potentially through funding provided by instituting a local hotel room tax;
Developing an online reservations system for accommodation properties in Squamish;
Preparing professional marketing materials that are available for all properties in the District
to use;
Participating in targeted industry trade shows in Canada and the Pacific Northwest;
Conducting workshops for independent operators, focusing on the professional operation
and marketing of an accommodation property;
Promoting Squamish as a destination linked to Whistler, focusing on the complementary
tourism assets of Squamish and the reduced travel time between Whistler and Squamish
resulting from the new highway; and,
Encouraging quality enhancements for existing and new properties through greater
participation by individual properties in programs such as the Canada Select
Accommodation Rating program.
6. Bed and Breakfast guidelines/policy. The B&B sector is growing in Squamish. Further
development of this sector should be guided by well-conceived District guidelines and policy.
December 2004
4
Timing and Implementation
This study recommends that the District encourage accommodation growth and quality
enhancement through the initiatives discussed above. The implementation of these initiatives
should be timed to ensure that the District capitalizes on opportunities presented by the Games –
leading up to, during and following the event. High level implementation steps and timing are
presented in the following table, with a more detailed implementation plan provided later in the
report.
Accommodation Strategy Implementation Plan (Summary)1
Recommendation
Timing
Lead
Identify potential sites and the status of sites (private, Crown,
District). Amend zoning, if required.
2005
District
Design a request for expressions of interest (EOI) and an
investment opportunity package. Advertise the EOI.
2005/06
District
Evaluate the responses to the EOI and select the most suitable
candidates.
2005/06
District
Conduct detailed feasibility study
2006
Developer /
hotel company
Develop the property.
2007/08
Developer/ hotel
company
Target completion date.
By May 2008
1. Good Quality Highway Hotel
2. Unique Downtown Hotel
Identify potential sites and the status of sites. Amend zoning, if
required.
2005
District
2005/06
District
candidates.
2005/06
District
2005/06
Developer /
hotel company
2007/08
Developer/ hotel
company
By May 2008
3. Nature-based Lodge/Resort
Identify potential sites and status of sites. Amend zoning, if
required.
2005
District
2005/06
District
1 Note that a more detailed version of this Implementation Plan is provided later in the report.
December 2004
5
Accommodation Strategy Implementation Plan (Summary)1
Recommendation
Timing
Lead
candidates.
2005/06
District
2005/06
Developer /
hotel company
2007/08
Developer/ hotel
company
By May 2008
4. Campground(s)
Proceed with the development of the campground that is currently
being contemplated.
2005
Private Sector
Assess the need for an additional campground / RV site.
2005 - 2010
District
If the above monitoring indicates that there may be sufficient
demand to support an additional campground, design an EOI and
investment opportunity package, and advertise the opportunity.
Select the most suitable candidate and proceed with the
development.
2005 - 2010
District
Encouraging coordination of accommodation marketing for the
region, through various partnerships and potentially through
funding provided by instituting a local hotel room tax
2005/06
District/industry
Develop an online reservations system.
2005/06
District/industry
Prepare professional marketing materials.
2005/06
District
Participating in targeted industry trade shows.
2006 ongoing
Industry
Conduct professional development workshops for independent
operators, on a cost-recovery basis.
2005 ongoing
District
Promote Squamish as a destination linked to Whistler.
2005 ongoing
District/industry
Encouraging quality enhancements for existing properties through
greater participation by individual properties in programs such as
the Canada Select Accommodation Rating program.
2005 ongoing
District/industry
2005/06
District
5. Coordinated Marketing & Product Quality
6. Bed & Breakfast Guidelines/Policy
Develop B&B guidelines / policy at the District level.
December 2004
6
Introduction
Background
Squamish is located on the popular and picturesque segment of Highway 99 known as the “Sea-toSky Highway”. The District of Squamish (the “District”) currently has 36,661 residents, and the
population is expected to continue growing. The socio-economic situation of this area is currently
in transition. Traditionally dependent on the forestry sector, the region is pursuing several
opportunities that will diversify and revitalize the regional economy. A sector of particular interest
to the District is tourism.
Squamish is recognized as one of BC’s top recreational areas. The area’s popularity as an outdoor
adventure destination is built upon its wealth of natural attributes, its setting and its proximity to key
markets. Squamish’s outstanding natural attractions support a range of year-round outdoor
adventure activities.
Sample Adventure Activities – Squamish Area
Summer
Mountain biking
Hiking
Golfing
Fishing
Swimming
Scuba diving
Windsurfing
Horseback riding
Winter
Skiing and ski touring
Snowmobiling
Eagle viewing (Nov-Jan)
River rafting
Kayaking/ canoeing
Camping
Mountain and rock climbing
Source: Grant Thornton LLP Research
Several factors related to potential tourism development opportunities are promising for the
Squamish area.
December 2004
7
Squamish is well located on the Sea-to-Sky Highway, mid-way between Vancouver and
Whistler. This presents significant opportunities because of the area’s proximity to
Vancouver and the existing flow of visitors who travel between Whistler and Vancouver.
This is a particularly advantageous location considering the opportunities that will be
generated through the 2010 Winter Olympic and Paralympic Games (the “Olympics”).
The District of Squamish is investing in several strategic planning initiatives aimed at
diversifying the community’s economy and beautifying the downtown core. The District
has identified tourism development, including accommodation (the subject of this
assignment), as an economic priority.
With the exception of some higher-end bed and breakfast properties, the Squamish area
does not offer high-quality accommodation, suggesting a gap in the current accommodation
inventory and a potential development opportunity.
The availability of established outdoor tourism product is good, and includes both guided
and unguided opportunities for visitors.
To assist the area in further establishing itself as a thriving tourism destination, the District and the
Community Futures Development Corporation of Howe Sound (the “CFDC”) have engaged Grant
Thornton to complete a Community Accommodation Analysis and Strategy. This report presents the
results of the study.
Scope of Engagement
The scope of work defined for this project includes the following tasks.
Conduct an inventory of existing accommodation products in the Squamish area.
Examine trends and influences in the accommodation sector world-wide, in the Pacific
Northwest and in particular along the Sea-To-Sky Corridor.
Investigate opportunities and make recommendations on an appropriate mix of
accommodation products that will provide a well-balanced sector in the community and
which can be supported by the marketplace over the long-term.
Provide a strategy for attracting suitable hotel companies/investors.
Describe appropriate geographic locations inside the District that would best support the
targeted mix of providers and how they will be integrated, including direction on how to
manage bed and breakfast growth within the community through appropriate guidelines/
policy/legislation.
December 2004
8
Accommodation Trends
Introduction
This section sets the stage for future development and performance of Squamish’s accommodation
sector. Specifically, it presents an overview of characteristics of the North American and provincial
accommodation sector, highlighting relevant trends related to accommodation demand and
performance.
Accommodation Types
Accommodation is technically defined as “living quarters provided for public convenience”. For the
purposes of this study, the following accommodation categories are used.2.
Accommodation
Type
Hotels
Motels
Resorts
3:
Definition
Hotels are fixed-roof, commercial accommodation properties with room access
from the interior of the building. Hotels are typically located in urban or
airport areas.
Motels are fixed-roof, commercial accommodation properties with room
access from the exterior of the building. Motels are typically located in urban
and rural locations, and are frequently located along highways and
thoroughfares (e.g., motor hotels).
Resorts are commercial accommodation facilities that are associated with
recreational activities. These activities can include, for example, skiing, golfing,
boating, fishing, cycling, swimming, horseback riding, hiking, nature-based or
interpretive tours, and other activities. The types of resorts available are
diverse and include:
All-season/four-season resorts, alpine resorts, condominium resorts,
destination resorts, summer and/or winter resorts, and timeshare resorts.
Larger-scale, four-season, multi-faceted destination resorts offering a
2 British Columbia Tourism Growth Framework – Part I: Tourism Industry Snapshot, May 2001, Province
of British Columbia.
3 Recommendations of the BC Resort Task Force 2004
December 2004
Accommodation
Type
9
Definition
wide range of accommodation, food and beverage, recreational activities
and entertainment.
Health resort, casino resorts, housekeeping resorts, hunting lodges,
marine or marina resorts, recreational vehicle resorts, ski resorts and
spa resorts.
Campgrounds, fly-in fishing lodges, guest ranches or housekeeping
units.
Lodges and cottage complexes are outdoor-oriented, commercial
accommodation properties that are often located in a wilderness or a
Lodges &
destination resort area. While lodges and cottage complexes are typically
Cottage
smaller than resorts, they sometimes form a component of a larger resort
Complexes
complex (see “Resorts” above). Typical lodges and cottage complexes are
outdoor adventure lodges and ski lodges.
Bed and Breakfasts (“B&Bs”) are commercial accommodation properties,
typically operated out of a private home. The accommodation rate typically
includes breakfast, served in a common dining room. Most B & B properties
Bed &
offer three or fewer rental units, due to the limited size of the proprietors’
Breakfasts
home and Provincial Government Hotel Room Tax Regulations which exempt
any property with fewer than four guest rooms from paying hotel room tax.
Campgrounds are formal and informal land areas that rent space for tent,
camper and/or recreational vehicle (“RV”) camping. Campgrounds range
from very rustic sites with no or limited services to higher-end RV parks that
offer a range of services, facilities and amenities. Campgrounds can be
Campgrounds
privately-owned operations or publicly owned and managed operations located
within Provincial Parks/Protected Areas, National Parks and/or Provincial
Forest Recreation Sites.
Sources: British Columbia Tourism Growth Framework, 2001, and BC Resort Task Force, 2004
Accommodation Demand Trends
Travel and tourism trends are key drivers for accommodation demand. Current market trends for
both tourism and accommodation are presented below. 4
With regard to types of vacations and tourism products, research reveals that there is growing
demand for:
4 Various sources: British Columbia Tourism Growth Framework, 2001; Trends in the Alberta Tourism
Industry, www.alberta-canada.com/tbd/tretour.cfm; Aboriginal Tourism Development Strategic Plan for
Northern Ontario; Mountain Region Fixed Roof Accommodation Assessment, 2002.
December 2004
10
More frequent, shorter vacations, sometimes termed as “get-away” vacations;
“Cross-over” trips that combine business and pleasure;
Unique, diverse and authentic travel experiences;
Specialized, niche products (note that this demand is creating greater flexibility in the travel
trade, with operators becoming more flexible and less structured in terms of the products
they are packaging and offering);
Special interest tourism, such as cultural tourism, educational or learning tourism and travel
built around professional development;
Event-based tourism (festivals, large concerts, sports competitions and other events);
Health, fitness and wellness tourism, which includes spa products;
Ecotourism and adventure tourism; and,
Agritourism, wine tourism and cuisine tourism.
With regard to visitors’ preferences for accommodation, research shows that there is growing
demand for:
More intimate facilities and services, such as those provided by boutique hotels, all-suite
hotels, lodges, inns and bed and breakfasts;
Eco-lodges and accommodation that operates in an environmentally responsible fashion;
Carefully planned mountain resorts;
Fractional ownership properties;
Good value for money;
Branded properties; and,
High standards in terms of service quality.
Accommodation Performance Trends – North America
Accommodation is an essential component of the travel and tourism industry. There are an
estimated 16,400 accommodation properties in Canada that generated approximately $12.8 billion in
operating revenue in fiscal 2002. This represented a 4.1% increase over operating revenues in 2001.5
The North American accommodation industry has been in an economic slump since 2001. Recent
reports indicate that the industry is recovering, but has still not rebounded to pre-2001 levels. Other
key trends in the North American accommodation market are summarized below. 6
5 Statistics Canada. “National Tourism Indicators: Quarterly Estimates Second Quarter 2004.”
www.statcan.ca.
6 Canadian Tourism Commission. “Traveller Accommodation Survey: A report for the Year 2002.” May
2004.
December 2004
11
Following 9/11, air passenger volumes have decreased and airport hotels have experienced
a larger decrease in occupancy levels and room rates than their urban based counterparts.
Motels and accommodation properties located along a highway experienced an increase in
occupancy levels in 2002, due primarily to growth “rubber tire” travel and a decline in air
travel.
Revenue per available room (“REVPAR”) levels have remained the same over the last five
to six years, yet operational costs have increased. A key challenge for many
accommodation properties is how to increase rates to improve performance, when clients
are typically quite rate sensitive.
The accommodation sector’s biggest growth opportunity is in luxury properties. Boutique
hotels in particular, have become a popular development trend in Vancouver, BC.
There is a trend toward offering hotel rooms that can function as office suites, with fullsized desks, computers and advanced communications technologies, effectively minimizing
the need for hotel business centers.
Foreign travelers tend to favor hotels over other types of accommodation. Canada
experienced the only increase in international visitors in 2002, which resulted in a higher
number of foreign guests at Canadian hotels.
On average, affiliated hotels tend to receive $19 more per night for their rooms than nonaffiliated hotels. Affiliated hotels and motels also tend to have higher occupancy levels than
non-affiliated properties.
The location of a town’s/city’s or destination’s accommodation properties is a contributing
factor to the performance of the area’s travel and tourism industry. The most popular
location for a hotel is in a downtown core or a central location. Motels are best located
along key thoroughfares, including highways.
Centrally located hotels had the highest average room rates in 2001 and 2002 and the
second highest occupancy levels. Airport hotels had a higher average annual occupancy level
in 2001, but recorded the second lowest profit levels.
Accommodation properties located along a highway had the lowest average room rates in
2001 and 2002. However, these accommodation properties tended to realize a higher profit
margin than both airport and centrally located properties.
Although the trend information presented above is largely based on 2001-2002 data collected
and/or assembled by the Canadian Tourism Commission, these trends are still relevant in today’s
market.
December 2004
12
Accommodation Performance Trends – BC and Regional
Western Canada7
Western Canada has mirrored global and national accommodation trends over the last three years.
Immediately following 9/11, most of the major hotel markets (e.g., downtown Vancouver,
Richmond, Victoria) suffered a decline in occupancy levels, average room rates, and REVPAR.
Mirroring the North American market, Western Canada has experienced some recovery, though pre2001 performance levels have only recently been attained by the industry.
Accommodation revenues in Western Canada, overall, have not grown as much as eastern markets.
This is due primarily to the decline in air passenger volumes, as western markets have traditionally
been dependent on travel from the US, Germany and Japan. Visitation from these markets has
declined since 2001; consequently, the performance of the accommodation market in western
Canada has not been as positive as in eastern Canada.
Also, in 2002, the weather had a significant impact on occupancy levels. Alberta and Saskatchewan
suffered a severe drought in the summer, which resulted in lower than usual occupancies, and BC’s
late winter resulted in hotel cancellations at several ski resorts.
Despite this experience, there has been some recovery in accommodation market performance in
Western Canada. The performance of this market over the last four years is presented in the table
below.
Accommodation Market Performance – Western Canada
Annual Occupancy
Average Room Rate
REVPAR
Source: PKF Statistics
*Year to date August 2004
** Average annual growth
2001
2002
2003
61.1%
$110.98
$67.80
61.0%
$108.72
$66.32
59.0%
$109.69
$64.71
2004*
63.6%
$114.78
$73.00
Growth**
1.4%
1.1%
2.5%
As illustrated in the table above, the three performance measures declined in 2002 and 2003. There
has been a rebound year-to-date for 2004; however, this cannot be confirmed until final figures have
been recorded for 2004 as a whole. According to Tyne Hospitality Services Limited, the bestperforming accommodation markets in Western Canada, based on REVPAR growth in the first five
months of 2004, are:
Abbottsford/Chilliwack (+21.7%)
Downtown Vancouver (+16.1%)
Kelowna (+13.6%)
7 Ibid.
December 2004
13
Based on the same source, markets that continue to show a decline in REVPAR performance
include:
Whistler (-6.2%)
Regina (-3.6%)
Lethbridge (-2.4%)
Edmonton West (-0.8%)
British Columbia
Tourism, and consequently the accommodation sector, is an important component of BC’s
economy. The Province Government’s Statistics Branch (“BC Statistics”) indicates that there are
17,000 tourism-related businesses in the province and more than 114,000 people employed in
tourism-related jobs. There are currently 3,320 accommodation properties in BC, 700 of which are
classified as resorts. BC accommodation properties comprise approximately 20% of Canada’s total.
The province’s abundance of recreational activities (e.g., skiing, golf, fishing, water activities, wildlife
viewing, hiking) and outstanding natural settings provide an ideal environment for resort
development. A key priority of the provincial government is to attract more resort investment.
In terms of performance, the accommodation sector in BC has shown significant improvement yearto-date 2004 over 2003, with a few notable exceptions. As noted in the preceding section, Whistler,
BC’s premier destination resort, continues to experience negative REVPAR growth. The Greater
Vancouver Regional District (the “GVRD”) market has realized an overall increase of 16.1% in
REVPAR year-to-date 2004 over 2003; however, there are market areas within the GVRD that have
not performed as well as the average. For example, the Surrey/Langley market has only increased
by 0.4% over last year, possibly the result of an oversupply of hotel properties in that market which
is affecting performance.
Historical performance statistics for BC and selected locations within the province are presented in
the table below.
Accommodation Market Performance – British Columbia
Growth
2001-2003
2001
2002
2003
2004*
59.3%
$118.22
$70.14
59.0%
$118.03
$69.67
58.2%
$114.64
$66.73
64.4%
$114.78
$73.03
-0.9%
-1.5%
-2.4%
63.3%
$120.57
$76.27
62.7%
$118.37
$74.17
61.7%
$113.47
$70.04
68.6%
$120.05
$82.30
-1.3%
-2.9%
-4.1%
British Columbia
Annual Occupancy
Average Room Rate
REVPAR
GVRD
Annual Occupancy
Average Room Rate
REVPAR
December 2004
14
Accommodation Market Performance – British Columbia
2001
Downtown Vancouver
Annual Occupancy
64.0%
Average Room Rate
$146.27
REVPAR
$93.58
Whistler
Annual Occupancy
55.0%
Average Room Rate
$206.54
REVPAR
$113.67
Source: PKF Statistics
* Year to date August 31, 2004.
Growth
2001-2003
2002
2003
2004*
63.4%
$140.93
$90.07
63.9%
$133.15
$85.02
71.0%
$140.17
$99.59
-0.1%
-4.5%
-4.6%
54.5%
$207.62
$113.14
51.6%
$202.34
$104.39
61.0%
$203.65
$124.25
-3.1%
-1.0%
-4.1%
The trends presented in the table above can be summarized as follows:
In general, occupancy levels at accommodation properties in key BC locations declined in
2002 and 2003. Downtown Vancouver experienced the smallest decline out of the four
locations presented above, while the Whistler market realized the largest decline.
Average room rates in these same markets also declined, with the most pronounced decline
occurring in downtown Vancouver. Industry sources indicated that this was a result of
properties discounting their room rates to draw visitors and maintain occupancy levels.
Overall, all of the four locations are showing signs of recovery for year-to-date 2004.
However, the extent of this recovery cannot be determined until final year-end figures have
been recorded.
An important indicator of potential tourism and accommodation demand are air passenger volume
projections prepared by major airports. Vancouver International Airport passenger volumes are
projected to grow by 6.1% in 20048. Looking to the longer-term, the Vancouver International
Airport Authority has projected strong passenger volume growth rates for all geographic markets
over the next 15 years. This is a positive factor for continued growth in room demand and
occupancy levels in BC.
As announced on July 2, 2003, Vancouver and Whistler have been selected to host the 2010
Olympics. The Olympics are expected to have a significant effect on BC’s tourism industry in terms
of both generating public awareness about the province and in driving provincial tourism revenues.
The accommodation sector is expected to directly benefit from both the increase in exposure and
visitation the Olympics are expected to bring to the province, prior to, during and following the
8 Source: Vancouver International Airport
December 2004
15
event. This is particularly positive for communities that are located in close proximity to Vancouver
and Whistler.
Conclusions
In terms of strategic planning for the province’s tourism industry, the location of accommodation
properties is critical. According to the Traveller Accommodation Survey published in May 2004,
hotels located in downtown, central locations tend to realize better room rates and occupancy levels
than hotels located in other locations, but motel properties located along the highway tend to realize
higher operating profits than those located off the highway. These two trends are of considerable
importance to the District’s Accommodation Strategy, given Squamish’s location along the Highway
and the District’s plan to revitalize its downtown core.
In terms of performance, the accommodation sector worldwide suffered a decline following the
events of 9/11. The sector is now rebounding, after two years of declining performance. In BC,
downtown Vancouver, Abbottsford/Chilliwack and Kelowna have all registered significant increases
in REVPAR over 2003. This turn-around in performance is a positive sign for accommodation
properties throughout the province.
Looking to the future, two factors are very positive in relation to the performance of the province’s
accommodation sector. The first is the Province’s Resort Strategy, which aims to create a positive
investment climate for resort development throughout BC. The second is the hosting of the
Olympics in 2010, which will create opportunities to boost visitation and room demand prior to,
during and following the event. This will occur throughout the province, but will be more
pronounced in locations closer to Vancouver and Whistler. This is positive for the potential
performance of existing and new accommodation properties in the Squamish area.
December 2004
16
Accommodation Supply – Squamish
Introduction
In order to effectively identify potential accommodation development opportunities, a
comprehensive assessment of existing and proposed properties was conducted. This is an important
“first step” leading to the supply-demand analysis presented in the following section of this report.
The assessment of existing and proposed accommodation properties in the District of Squamish is
presented below. An overview of the total accommodation supply is presented first, followed by a
detailed description of each accommodation type. This report section concludes with a gap analysis,
indicating the types of accommodation facilities that may be needed in the future, depending on
market and tourism development conditions. Note that a detailed accommodation inventory is
presented in Appendix A. Appendix B presents the development stages of Squamish’s
accommodation sector from 1950 to the present.
Accommodation Supply Overview
In terms of fixed roof accommodation, the District has 15 B&Bs, five hotels, three motels, two
hostels, and four resorts/cabin complexes. The total number of fixed roof units is approximately
363. The District has a total of eight campgrounds: three private, one municipal and four located in
Provincial Parks. There are a total of 510 campsites. The area has one specialized accommodation
property that offers sleeping accommodation for up to 84 people in 12 chuck wagons. The total
number of accommodation units, located in both fixed roof facilities and campgrounds, is
approximately 880.
Summary of Accommodation
Type
Bed & Breakfasts
Hotels
Motels
Hostels
Lodges, Resorts and Cabins
Sub-total Fixed Roof
Reference
Code
BB
H
M
# of
Properties
15
5
3
YH
2
R
4
29
Total #
Units
33+
220
84
6+ and
dorms
20
363+
2004 Rack
Rates (range)
$45 - $170
$40 - $159
$49 - $90
$17 - $60
$79 - $275
December 2004
Type
Campgrounds (Private)
Campgrounds (Municipal)
Campgrounds (Provincial)
Sub-total Campgrounds
Specialized
Total
Reference
Code
C-P
C-M
C-PG
S
17
# of
Properties
3
1
4
8
1
38
Total #
Units
223
40
247+
510+
7 (sleeps
84)
880+
2004 Rack
Rates (range)
$20 - $26
$16 - $20
$5 - $22
$15/pax
($180/unit)
Bed and Breakfasts
The B&B sector is a new and growing accommodation type in the Squamish region, with all of the
15 existing properties entering the market after 2000. This timing paralleled the development of a
new, higher-end residential area in Squamish, the Garibaldi Highlands. The majority of the existing
B&Bs are located in this residential area.
There are approximately 33 units supplied by the 15 B&B properties, as summarized in the
inventory below. The majority of these properties have three or fewer rooms, which is likely a result
of the size of the homes and Provincial legislation that exempts accommodation properties with
fewer than four rooms from paying the Provincial Hotel Room Tax. Supply has increased over the
last three years, with a number of higher-end and/or specialized products entering the market (e.g.,
accommodation for the adventure traveller). Room rates for B&Bs in the region range from a low
of $45 to a high of $170, reflecting a range of quality levels, amenities and services. Two of the B&B
properties are members of the Canada Select9 rating program: the Coneybeare Lodge (4-star rating)
and the Nu-Salya B&B Chalet (5-star rating).
Relative to larger hotels, motels and resorts, the development of a B&B requires less capital
investment and involves lower risk. This enables operators to enter and exit the market quite
readily, in response to business drivers, such as changes in demand. One of the 15 properties is
currently for sale (Nomad’s Rest B&B) and one is slated to enter the market in 2005 (Smoke Bluff
B&B).
Since the entry of B&Bs into this market, demand has kept pace with increases in supply. The
summer is the peak season for this accommodation sector, although weekends are busy throughout
the year.
9 The Canada Select Five Star Accommodation Rating Program is an optional rating program that
accommodation properties can join for a fee. Member properties are professionally rated based on
criteria related to extent of physical facilities and services, amenities, and quality. The program enables
consumers to better assess accommodation choices to meet their needs.
December 2004
18
B&Bs typically attract the leisure market, rather than business travellers or work crews. Operators
surveyed for this study indicated that many of their guests are travelling to other destinations and
choose to stay in Squamish for one or two nights. A number of B&B operators commented that
they receive a large proportion of guests from Europe and the US, particularly the Pacific
Northwest. A small number of B&B operators stated that they receive a fair amount of business
from BC residents, seeking a weekend get-away. Several operators identified the Lower Mainland as
an untapped market for Squamish in general. These operators indicated that, with increased
marketing efforts, more business could be realized from this geographic market.
Bed and Breakfast Properties
Ref.
Name
Code
BB #1
Alpine Bed & Breakfast
BB #2
Bella Vista Bed & Breakfast
BB #3
BB #4
BB #5
Coneybeare Lodge B & B
Cranberry Cottage B & B
Glacier View B & B
BB #6
BB #7
BB #8
Glacier Gallery B & B
Grand Wall B & B
Home Sweet Home B & B
BB #9
Hummingbird Pension B & B
BB #10
McQuinn Manor B & B
BB #11
Nomad’s Rest B & B
BB #12
BB #13
BB #14
BB #15
Nu-Salya B & B Chalet
Shannon’s B & B
Smoke Bluff B & B (2005)
True North B & B
Total: 15
Location
Garibaldi
Highlands
Garibaldi
Highlands
Garibaldi
Highlands
Squamish
Garibaldi
Highlands
Garibaldi
Highlands
Squamish
Garibaldi
Highlands
Garibaldi
Highlands
Garibaldi
Highlands
Garibaldi
Highlands
Garibaldi
Highlands
Squamish
Squamish
Garibaldi
Highlands
Opened
#
Units
>2000
1
2000
2
2001
3
2002
1
2003
2
2002
3
>2000
N/A
2003
3
N/A
5
2001
2
2002
3
>2000
3
>2000
2005
1
2
2002
2
33+
2004 Rack
Rates
$100 - $125
$85
$110 - $140
$75 - $95
$85
$95 - $135
N/A
$85 - $125
$85 - $100
$75
$70 - $80
$155 - $170
$45 - $60
TBD
$90 - $145
December 2004
19
Hotels and Motels
There are currently five hotels and three motels located within the District, with a total complement
of 304 guest rooms (see inventory below). All of these properties are independently owned and
managed, with none operating under a franchise agreement. The Mountain Retreat Hotel and Suites
originally had a Super 8 franchise when it entered the market in 1998, but is now operated
independently.
Six of the eight properties entered the market prior to 1980. The two more recent properties are the
Mountain Retreat Hotel (1998) and the Howe Sound Inn and Brewing Company (1996). With the
exception of these two newer properties, the District’s hotel and motel supply is very outdated.
Four of the hotels offer meeting space: the Sea to Sky Hotel, the Mountain Retreat Hotel and
Suites, the Howe Sound Inn and Brewing Company, and the Chieftan Hotel. The Sea to Sky Hotel
has the largest meeting room capacity with one ballroom and three meeting rooms, offering a total
of 7,700 square feet of function space. This is the region’s most established conference hotel.
Restaurants are featured in three of the hotels:
The Howe Sound Inn and Brewing Company offers a dining room, featuring west coast
cuisine, and a brewpub.
The Mountain Retreat Hotel and Suites offers a family style restaurant and a lounge.
The Sea to Sky Hotel offers a family style restaurant and a bar and grill.
Two of the eight hotel/motel properties have opted to join the Canada Select program: the
Mountain Retreat Hotel and Suites (3 stars) and the Sea to Sky Hotel (3 stars).
With regard to target markets, the older properties originally targeted resource industry and
government workers. As the local economy has changed over the years, additional properties such
as the Mountain Retreat Hotel and the Howe Sound Inn have entered the market to accommodate
the growing demand from leisure and business travellers. Some older properties, such as the Sea to
Sky Hotel, have adapted to changes in the economy by targeting more leisure (e.g., family ski
vacations) and meetings business. More recently, construction activity associated with the new
highway has benefited the older properties. The “economy” hotels and motels that participated in
the interviews indicated that recently they have been fully booked and the majority of their clientele
are long term guests working on various construction projects, including highway construction.
Tourists on the other hand, tend to only stay a few nights, before moving on to another destination.
Overall, most properties commented that business declined after 9/11. However, performance for
2004 year-to-date has been very good. The number of US travellers has increased from 2002 and
2003, with summer traditionally the busiest season. However, several operators feel the winter ski
market has significant potential. In order to penetrate this market, operators feel the District needs
to market Squamish's proximity to Whistler, specifically given the reduction in travel time due to the
new highway.
December 2004
Hotels
Ref.
Code
H #1
H #2
H #3
Name
Location
Chieftan Hotel
Howe Sound Inn & Brewing
Company
Mountain Retreat Hotel &
Suites
H #4
Ocean Port Hotel
H #5
Sea to Sky Hotel
20
Downtown
Squamish
Downtown
Squamish
On the
Highway
Downtown
Squamish
On the
Highway
Opened
#
Units
2004 Rack
Rates
>1950
44
$40 - $45
1996
20
$105
1998
87
$94 - $138
>1980
17
N/A
1974
52
$79 - $159
Total: 5
Motels
Ref.
Code
M #1
M #2
M #3
Total: 3
220
Name
Location
August Jack Motor Inn
Cozy Motel (closing due to
sale)10
Garibaldi Budget Inn
Squamish
Squamish (off
Highway)
Squamish
1974
#
Units
38
2004 Rack
Rates
$50 - $85
1960
16
$56 - $90
1974
30
84
$49 - $69
Opened
Hostels
There are currently two hostels in the region, both of which opened after 2000. These properties
offer economy style accommodation for travellers, who are often drawn to the area for its outdoor
activities. For example the Squamish International Hostel is located near the base of the Stawamus
Chief and tends to attract visitors interested in rock climbing, hiking and other outdoor activities.
Hostels
Ref.
Code
YH #1
YH #2
Total: 2
Name
Rainforest
Backpackers’ Hostel
Squamish
International Hostel
Location
Opened
# Units
2004 Rack
Rates
Squamish
>2000
N/A
$17 and up
Squamish (off
Hwy)
>2000
6 + dorms
$20 - $60
6+
10 This property has recently been sold, with the land slated for residential development.
December 2004
21
Four properties in the region offer resort style accommodation. These include cabin rentals,
vacation home rentals, and small inn rooms. There are currently four of these properties, three in
Brackendale and one in Garibaldi Highlands. The Sunwolf Outdoor Centre offers cabin rentals,
guided outdoor activities and an on-site restaurant, whereas the other properties offer
accommodation only.
The operators who were interviewed indicated demand has been increasing over the last three years.
Business is expected to continue to increase over the next few. The key markets for these properties
are Washington State, the Lower Mainland, and overseas guests. The spring and summer tend to be
the peak season, however, Christmas is also a popular period for one of the properties.
Ref.
Name
Code
Dryden Creek Resort (see C
R #1
#2)
Ring Creek Cabins (3 vacation
R #2
rentals)
Sunwolf Outdoor Centre
R #3
(cabins)
R #4
Tantalus View Retreat
Total: 4
Opened
#
Units
2004 Rack
Rates
1988
5
$79 - $89
>2000
3
$100 - $275
Brackendale
1994
10
$90 - $100
Brackendale
>2000
2
20
$210
Location
Brackendale
Garibaldi
Highlands
Campgrounds
The Squamish area is known for its outdoor recreation resources and is a popular destination for
camping, both tent and recreational vehicle (“RV”). The region currently has three private
campgrounds and one municipal campground, in addition to several campgrounds located in four
Provincial Parks. There are more than 510 campsites (units) supplied by these campgrounds. Many
of the campgrounds offer both tent and RV sites. Rates range from $5 to $26, with the private
campgrounds charging slightly higher rates than the Provincial campgrounds.
According to the interviews conducted with campground operators in the District, there is a high
level of demand for this type of accommodation, particularly during the summer season and over
weekends. The winter season tends to be very slow.
The majority of campground users are leisure travellers. As with the B&B sector, a large percentage
of the campground users are Europeans travelling through BC. Recently, with growth in the
volume of highway construction in the region, campgrounds have been attracting an increasing
number of work crews. One campground/RV site operator commented that it is currently fully
booked, which is unusual for this time of year. As well, there have been periods where the existing
December 2004
22
campgrounds are fully booked and the local Wal-Mart has offered camp sites in its parking lot for a
fee.
Campgrounds
Ref.
Code
C-P #1
C-P #2
C-P #3
C-M #1
C-PG #1
C-PG #2
C-PG #3
C-PG #4
Name
Location
Dryden Creek Resort (see R
#1)
Klahanie Campground & RV
Park
Paradise Valley Campground
Squamish Municipal
Campground
Alice Lake Provincial Park
Brackendale
Garibaldi Provincial Park*
Porteau Cove Provincial Park
Stawamus Chief Provincial
Park
N. of Squamish
N. of Squamish
Squamish
Alice Lake
Garibaldi
Provincial Park
Howe Sound
Squamish
Opened
#
Units
1988
49
1976
125
2001
49
N/A
40
N/A
108
N/A
17+
N/A
60
N/A
62
Total: 8
2004
Rack
Rates
$20 - $26
$20
$20 - $26
$16 - $20
$22
$5 - $10
$14 - $22
$9
510+
Note that this inventory only includes those campground sites (units) that are within 10 – 15
kilometres of Squamish (Garibaldi Provincial Park has more units than indicated here, but these are
located outside the stated range).
Specialized Accommodation
There is one property in the region classified as “specialized accommodation”, as it offers
unconventional accommodation in the form of chuck wagons and tepee tents. This facility has
seven chuck wagons that can accommodate 12 people each (84 maximum). This business is
affiliated with the Canadian Outback Adventure Company, which offers a variety of guided
activities. The property has a kitchen and a dining area, which can accommodate up to 100 people.
Specialized Accommodation
Ref. Code
Name
Location
S#1
Sea to Sky
Stables
Brackendale
Total: 1
Opened
1995
# Units
7 (sleeps
84)
7
2004 Rack
Rates
$15/pax
($180/unit)
December 2004
23
Proposed Accommodation Development
There are several potential accommodation developments proposed for the Squamish area. When
formulating conclusions regarding the type of accommodation development that may be needed for
the District in the future, it is important to factor in new developments that are likely to proceed.
The status of the potential accommodation developments is discussed below, based on recent
information provided by the District of Squamish Planning Department, in addition to interviews
with some of the potential developers. Note that some of these developments may not proceed.
Only those that are deemed quite certain to proceed are included in the accommodation supplydemand projections discussed later in this report.
Garibaldi Springs Golf Resort
The proposed Garibaldi Springs Golf Resort includes a golf course and a residential/resort
development. The golf course component of this development recently started operations. Preselling for the residential /resort component is underway. This component includes 107
condominium units and a 120 suite, four-star hotel, which is scheduled to open by January 2006.
This is a positive development for the region, as the golf course provides an additional demand
generator for the District and the hotel will be the first 4-star property in the region, offering visitors
the choice of a higher-end property. This development is considered highly likely to proceed and, as
such, the addition of the 120 new accommodation units has been factored into the supply-demand
analysis presented in the next section of the report.
New Campground
The District’s Planning Department indicated that they have received an application for a new
campground that will most likely proceed. This is scheduled to be open by the spring 2005. The
campground is to be located on a seven-acre piece of Crown land along-side the Mamco River.
Development plans call for 50 RV sites, in addition to a tenting area.
Given that there are periods of excess demand for RV and camp sites in the region, this is a very
positive development for the District’s accommodation sector and overall tourism industry.
Garibaldi at Squamish (Brohm Ridge Ski Development)
Garibaldi Alpine Resort is the proponent for this ski resort, which has been under consideration for
many years. Plans include the development of 1,500 on-mountain hotel rooms. The proposal has
been on hold for the last one and one-half years, due partially to requirements related to First
Nations’ consultation.
The certainty and resulting timing of this development is unknown at the time or report writing
(December 2004). If it does proceed, it would likely have a significant impact on the region’s
tourism industry, as it would serve as a major draw for visitors and would provide a large supply of
resort-style accommodation. However, given the project’s uncertainty at this time, it has not been
factored into the supply-demand analysis presented in the following section.
December 2004
24
Downtown Hotel and Conference Centre
The District has recently purchased water-front land and formed a company, Ocean Point
Development Corporation, with the intention of potentially developing this land. One potential
development under consideration is a 200-room hotel and conference centre. This proposal is very
preliminary and has not been directly factored into this study’s supply-demand analysis. However,
the analysis does look at the potential for this type of development for the future.
Pacifica Resort Developments
This proposed development is for the provision of gondola access across the Tantalus Range, in
addition to residential and possibly commercial accommodation components. This proposal is very
preliminary at this time and has not been factored into this study’s supply-demand analysis.
“Tourist Commercial” Zoned Sites
The District’s Planning Department indicated that two sites in the District are zoned “Tourist
Commercial” and have been considered by developers in the past. At this time, however, there is no
known interest in these sites. Consequently, they have not been considered in the supply-demand
analysis.
Conclusions and Gap Analysis
A diversified supply of commercial accommodation, that meets the needs of existing and potential
markets, is essential to the success of a destination’s and region’s tourism and travel industry. Over
time, a destination’s accommodation supply may need to change, in terms of accommodation type,
capacity, quality, and specific facilities and services offered, depending on shifts in the market and
the resulting opportunities.
The following paragraphs refer to the Squamish area’s current accommodation mix, specifically
noting existing or potential gaps that need to be addressed in order to assist Squamish progress as a
tourism destination.
Diversity of Accommodation Types
Over the last ten years, the region’s accommodation industry has diversified in response to market
demand and due to the presence of new residents in the Squamish area who have developed
different types of accommodation. This diversity includes the development of 15 bed and breakfast
properties, several outdoor-oriented properties, cabins, a smaller hotel with a restaurant and
brewpub, and a large (87-unit) family-style hotel property. This enhanced diversity is positive, as it
provides greater accommodation selection for existing markets and potentially draws new markets to
the region.
Despite this growth in diversity, the region lacks two property types that would result in a more
balanced selection of accommodation:
Higher-end, resort style properties; and,
December 2004
25
Higher-end urban style properties.
However, it should be noted that attracting investment in these types of properties requires certain
conditions, as discussed below.
Condition
The area must offer attractive natural features and
settings.
The area must offer a variety of popular activities,
particularly related to soft and hard adventure.
The downtown area must offer a diversity of
high-quality restaurants, shops, attractions and
visitors services in an attractive civic setting.
The destination must be effectively branded and
marketed, to create presence in key markets and
draw sufficient demand to generate business for
these new properties.
Current Status - Squamish
Squamish and the surrounding region
satisfies this condition.
Squamish and the surrounding region
currently satisfies this condition.
There are opportunities to build more
capacity for guided activities, as demand
increases.
Currently, Squamish does not meet this
condition.
However, the District is initiating some
significant civic projects intended to improve
urban appeal and stimulate private sector
growth.
Currently, Squamish does not meet this
condition.
Squamish needs to develop an effective,
unified brand and strategic marketing
program.
The District is in the process of developing
trade and investment strategies that are
intended to address these deficiencies.
Accommodation Capacity
Given current market demand, the region seems to have sufficient capacity with regard to fixed roof
accommodation. However, as demand for accommodation increases in the next five to ten years,
additional supply will be needed in the market. The supply of campgrounds, on the other hand, is
not sufficient to meet demand, particularly during the summer months and on weekends.
As Squamish addresses the development and marketing issues noted in the table above, visitation to
the area will likely increase, generating room demand for better quality properties. The District will
likely experience capacity constraints for better quality properties in the future, particularly just prior
to, during and following the 2010 Olympics.
Accommodation Quality
Many of the accommodation properties in the region are well maintained, particularly properties that
have entered the market within the last ten years. However, several of the older properties are not
December 2004
26
well maintained. This is not good for the region’s market image. However, as real estate values in
the region increase, some of these properties will likely be redeveloped as residential or potentially as
commercial accommodation. This will likely result in the exit of approximately four to five older
motels/motels over the next five to ten years, comprising approximately 115 to 145 units. This, in
turn, will provide incentives for new entrepreneurs and modern properties to enter the market.
With regard to accommodation ratings, currently, there are four properties in the area that are
members of the Canada Select Accommodation rating system. This program motivates properties
to maintain and enhance the quality of their facilities and services and provides consumers with
standardized information upon which they can base their accommodation choices. A higher level of
participation in this program would help the regions’ accommodation industry improve its overall
quality and professionalism.
In terms of hotels and motels, there is a lack of higher-end properties. The highest Canada Select
rating achieved by hotels in the region is 3 stars, which is the rating for both the Mountain Retreat
Hotel and the Sea to Sky Hotel. Two bed and breakfast properties are higher-end: the Nu-Salya
B&B Chalet (5 stars) and the Coneybeare Lodge (4 stars).
Properties with Ratings
Property Name
Type
Rating
Nu-Salya B&B Chalet
Coneybeare Lodge
Mountain Retreat Hotel & Suites
Sea to Sky Hotel
B&B
B&B
Hotel
Hotel
Canada Select 5
Canada Select 4
Canada Select 3
Canada Select 3
Overall, at this time, the region’s accommodation supply is not adequate in terms of quality. With
the exception of a few good quality properties, the region does not have guest rooms that are able to
meet the needs of many key market segments. This limits the ability of Squamish to further evolve
as a tourism destination.
Accommodation Facilities and Services
Several of the properties offer meeting space, restaurants, recreational facilities and amenities. These
are summarized in the tables below. The existing number and type of facilities and services are
appropriate for the current accommodation base. However, looking to the future, as Squamish
matures as a tourism destination, properties should offer or be developed to offer specific facilities
and services.
The types of facilities and services required will depend on the vision for tourism development in
the District. For example, the region’s tourism industry may see an opportunity to develop more
conference business in the future, which would require the development of a greater supply of
professional conference space and related services. Another example relates to the development of
more sophisticated adventure and ecotourism product in the region. Currently, only two properties
December 2004
27
offer organized, guided adventure expeditions as an integral component of their accommodation
(see the last table below). Other properties can and do make arrangements with outfitters on an asneeded basis. However, as the destination matures, the market may be seeking properties that offer
resort-style accommodation and guest services, including guided activities.
Properties with Meeting Space
Hotel
Meeting
Rooms
4
7,718 sq. ft.
Hotel
2
N/A
Hotel
Hotel
Cabins
1
1
1
N/A
1,200 sq. ft.
N/A
Property Name
Type
Sea to Sky Hotel
Company
Chieftan Hotel
Total Size
Max Capacity
(reception)
620
110
60
50
30
Properties with Restaurants
Property Name
Restaurant Name
Howe Sound Inn & Brewing Company
Red Heather Bistro
Toasters
Midway Restaurant
Grizzly Bar & Grill
Cheekeye Bar & Grill
Sea to Sky Hotel
Seating Capacity
90
100
80
200
12
Properties with Recreational Facilities
Property Name
Facilities
Coneybeare Lodge
Cranberry Cottage B&B
Glacier Gallery B&B
Home Sweet Home B&B
Nu-Salya B&B Chalet
Howe Sound Inn & Brewing Company
Sea to Sky Hotel
Pool
Hot Tub
Sauna, Hot Tub
Hot Tub
Hot Tub
Sauna, Rock wall climbing
Fitness Centre, Pool, Waterslide
Spa, Fitness Centre, Hot Tub
Hot Tub
Properties with Recreational Activities (as part of accommodation offering)
Property Name
Activities (offered in-house)
Rafting, Eagle Viewing
Eagle Watching, ATV Rides, Hiking, Horseback Riding, Rafting
Trips
Sea to Sky Stables
December 2004
28
Accommodation Supply-Demand Analysis
Introduction
This section presents an overview of the historical and current demand for accommodation in
Squamish. To assist with the development of an accommodation strategy, demand for each type of
accommodation has been projected over the next seven years.
Historical Performance
The historical performance of the province and areas of significance to the Squamish
accommodation market are discussed below.
BC
Tourism is an important component of the BC economy. BC Statistics indicates that there are
17,000 tourism-related businesses in the province and that more than 114,000 people are employed
in tourism-related jobs. In 2003, BC hosted 21.9 million overnight visitors who generated $8.95
billion in visitor spending11.
BC’s hotel market performance over the last five years is presented on the charts on the following
page. BC’s annual occupancy has declined over the last five years, while average room rate and
REVPAR have remained relatively constant. Despite the prominence of the tourism industry within
the provincial economy, its performance has declined in recent years as a result of global and
regional economic conditions and events12. However, performance is expected to pick up
significantly in 2005.
Vancouver
The events of 9/11 have had a significant negative impact on the world’s tourism market, including
the Greater Vancouver accommodation market. Overnight visitors to Greater Vancouver continued
11 Tourism British Columbia
12 Global events that have significantly affected travel behaviour include: the terrorist attacks of
September 11, 2001; Severe Acute Respiratory Syndrome (SARS); the Gulf War; escalating oil prices; and
general global economic conditions. Regional events that have affected BC’s tourism industry
performance include the forest fires and floods of 2003.
December 2004
29
to decline in 2003, experiencing a 4.3% decline from 2002 levels. Hotel occupancy levels and room
rates continued to decline from 2001 levels (see charts below).
Despite the negative performance of the tourism industry over the last four years, industry sources
remain optimistic that the industry has started its rebound. Vancouver International Airport
passenger volumes are projected to grow by 6.1% in 2004, and the Vancouver International Airport
Authority has projected strong passenger volume growth rates for all geographic markets over the
next 15 years. The hotel industry in downtown Vancouver has realized strong growth thus far in
2004, to August 31st, and is expected to continue to increase over 2003 levels.
Whistler
Whistler receives an average of 2.0 million visitors per year. Whistler’s occupancy levels peaked in
2000 and have been declining since that time. The summer of 2003 was a particularly slow period
during which room nights in Whistler decreased by 16%. The decline in room nights was attributed
to continuing geopolitical uncertainty and the war in Iraq and effect of SARS on global tourism.
Room nights generated for the winter of 2002/2003 decreased by 8%. A decline in early season
business was attributed to poor snow conditions.
Average room rates increased from 1998 to 2002, and then declined slightly in 2003. REVPAR also
increased significantly, though it also experienced a decline in 2003. Average room rates and
REVPAR are significantly higher in the Whistler market, relative to the Vancouver market and BC
as a whole.
Although tourism growth suffered a set back in 2002 and 2003 throughout the province, Whistler
continues to gain considerable exposure as a tourist destination as a result of:
Whistler’s ranking as the “Number 1” ski resort in North America;
The success of the 2010 Winter Olympic bid; and,
The recreational nature of the region, including a focus on golf and ski holidays.
December 2004
30
Figure 1: Occupancy Trends - 1998 - 2003
80%
Occupancy (%)
75%
70%
65%
British Columbia
60%
Vancouver
55%
Whistler
50%
45%
40%
1998
1999
2000
2001
Year
2002
2003
Average Daily Rate
($)
Figure 2: Room Rate Trends - 1998 - 2003
220
200
180
160
140
120
100
80
60
40
British Columbia
Vancouver
Whistler
1998
1999
2000 2001
Year
2002
2003
Figure 3: Revenue per Available Room (RevPAR) Trends 1998 - 2003
120
Revenue ($)
100
British Columbia
80
Vancouver
Whistler
60
40
20
1998
1999
2000 2001
Year
2002
2003
December 2004
31
Squamish
Traditionally, Squamish’s tourism market has not been characterised by long-stay visitors. The
destination is well-known as a first-rate rock climbing, mountain biking and wind surfing destination,
but these visitors typically do not generate high demand for overnight, fixed-roof accommodation.
The majority of the tourist traffic is short-term stay, en route to/from Vancouver and Whistler, and
day-trip visitors participating in outdoor recreation. More recently, a large number of construction
workers related to highway work have generated increased room night demand. This demand is
expected to continue during the lead-up to the 2010 Games. The estimated historical performance
of the Squamish market is presented below13.
Historical Performance – Squamish Market
2001
B&B’s
Number of Units
Room Nights Available
Rooms Occupied
Occupancy %
Average Room Rate
Hotels/Motels
Number of Units
Rooms Occupied
Occupancy %
Average Room Rate
Resorts, Lodges, and Cabin
Number of Units
Rooms Occupied
Occupancy %
Average Room Rate
Source: Grant Thornton LLP research
2002
2003
Average
Annual
Growth
17
6,205
1,551
25.0%
$76.40
22
8,030
1,791
22.3%
$97.24
31
11,315
2,742
24.2%
$96.59
41.2%
41.2%
38.4%
-1.5%
13.2%
304
110,960
71,234
64.2%
$61.26
304
110,960
74,206
66.9%
$59.47
304
110,960
76,517
69.0%
$61.22
0.0%
0.0%
3.7%
3.7%
0.0%
26
9,490
4,650
49.0%
$108.23
26
9,490
5,030
53.0%
$111.18
26
9,490
5,694
60.0%
$112.50
0.0%
0.0%
11.2%
11.2%
0.0%
13 Note that the historical performance from 2001 to 2003 is based on interviews with individual
properties. Not all accommodation properties in Squamish participated in these interviews.
December 2004
32
The information presented in the preceding table can be summarized as follows:
The supply of hotels/motels and resorts, lodges and cabins has remained stable over the last
three years. The supply of B&B’s, however, has increased significantly.
Occupancy levels in the B&B market have ranged from 22% to 25% over the last three
years. Demand has increased at a slightly lower rate than supply, indicating that the current
supply of B&B properties is likely sufficient in the short-term.
Demand in the hotel/motel market has increased by 3.7% on an average annual basis.
Demand for resorts, lodges and cabins increased by 11.2% each year over the most recent
three years. This is likely due to growing reputation of the destination’s outdoor recreation
activities.
Average room rates in the B&B market have increased by an average annual rate of 13.2%.
As the number of higher end properties in the market has increased over the last three
years, the average room rates have also increased. Room rates for hotels/motels and
resorts, lodges and cabins have remained constant over the last three years according to
industry research.
Future Performance
The future performance of the Squamish accommodation market will be influenced by historical,
current and future demand generators. Each of these factors, and their associated potential impact,
is discussed below.
Historical Demand Generators
Historically, Squamish’s economy was dependent on the forest industry. The primary demand for
hotel accommodation was industrial activity relating to the forestry industry. This included industry
workers and professionals involved in the industry (e.g., government and private sector). This
industrial activity generated the need for basic accommodation in the town.
In the late 1980’s and early 1990’s, the forestry industry began to decline and the regional economy
started to diversify. Tourism and transportation have become the more prominent economic drivers
in the region. Currently, the accommodation and food service sectors employ approximately 16.6%
of Squamish’s total labour force, while the retail industry employs 9.9%, the transportation and
warehousing sectors, 8.9%, and the construction industry, 8.7%.
The shift in economic focus is due in part to Whistler’s emergence as a world class ski resort. In the
1990’s Whistler moved from strictly a winter resort destination to a “four season” destination,
attracting visitors year-round and from a broader geographic market. As a result, there has been
more tourist traffic through Squamish en route to Whistler. This traffic, in turn, began to generate
demand for “tourist” oriented accommodation in the Squamish area.
December 2004
33
Current Demand Generators
In recent years, from 2000 to 2004, demand for accommodation in Squamish has been generated
from two main sources.
While there is still some demand from the resource industry, the majority of the demand for
“basic accommodation” is generated by construction workers. This demand has been
beneficial to the campgrounds and older hotel/motel accommodation properties, especially
for those that offer long stay options. This source of demand had been declining, but due
to the launch of projects such as the Sea to Sky Highway upgrade, this market segment has
increased over the last year.
The other source of demand is tourist driven. Whistler’s reputation as a world class resort
has continued to grow, and the resort now attracts two million visitors annually. As well,
Squamish has continued to build on its reputation as an outdoor adventure destination and
is attracting visitors from several geographic markets, as illustrated by the most recent
visitor statistics (2003). The following visitor statistics are based on annual surveys
conducted by the Squamish Visitor Information Centre. BC residents made up the largest
proportion of visitors (48%), followed by Other Canada (19%), and Europe (13%).
Collectively, the US and Mexico generated approximately 14% of the total visitors surveyed
at the Visitor Information Centre.
Visitor Origin – Squamish Area
(2003)
Geographic Market
Proportion of Total
BC
Other Canada
US and Mexico
Europe
Asia/Australia
Other International
Total
Source: Squamish Visitor Information Centre and Tourism BC
48%
19%
14%
13%
6%
0%
100%
In terms of length of trip, the table below indicates that the majority of visitors are day-trippers or
same day visitors (59%). Approximately 20% stay for one night, while 11% stay for two nights.
Despite the year-round activities and tours available in the area, Squamish is impacted by seasonal
variations in visitation.
The challenge for the District is to increase average length of stay for visitors and attract more
shoulder and off-season visitors. Further diversification of the region’s tourism product and
December 2004
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infrastructure, in addition to improvements in accommodation selection and quality, will assist in
making Squamish a more attractive overnight and four-season destination.
Length of Stay – Squamish Area
Number of Nights
# Visitors - 2003
Same day
4,633
1
1,534
2
834
3
423
4–6
238
7 – 13
81
14+
103
Total
7,846
Source: Squamish Visitor Information Centre and Tourism BC
Proportion of Total
59.0%
19.6%
10.6%
5.4%
3.0%
1.0%
1.3%
100%
Future Demand Generators
2010 Winter Olympic Games
Looking to the next five to ten years, the hosting of the Olympics is expected to have a significant
effect on BC’s tourism industry in terms of both generating public awareness about the province and
in driving visitation and tourism revenues. The provincial government has made it a policy priority
to demonstrate the regional socio-economic benefits of the Games on communities throughout the
province. The Games are expected to stimulate increased awareness about tourism in BC, which
will be expanded on through destination promotion, product development and media relations for
the province.14 This is positive for Squamish, given its location halfway between Vancouver and
Whistler. This presents potentially significant opportunities for Squamish leading up to, during and
following the Games.
Trends
Squamish has realized significant population growth in recent years, benefiting from its proximity to
both Vancouver and Whistler. In 2001, the permanent resident population of Squamish was 14,871,
while the District had a population of 34,500 (see table below). Looking to the future, the District’s
population is projected to increase at an annual rate of 3.5%, reaching 60,000 by 2025.
14 Tourism BC, “Vancouver 2010 Olympics a win for tourism in British Columbia and Canada,” July
2003 News Release.
December 2004
Year
2001
2003
2005
2007
Source: BC Statistics
Population Projections
Squamish
14,871
15,137
15,545
15,860
35
District
34,533
35,761
36,661
38,642
Recent and projected population growth is partially due to staff housing constraints in Whistler. As
Whistler approaches its build-out capacity, Squamish will continue to see further increases in its
resident population. Housing prices in Squamish have already increased due to the growing demand
for housing. The increase in the resident population will assist in establishing Squamish as a major
residential and commercial centre, as opposed to a stop on the way to Whistler.
The local government is very interested in strategies to further diversify and grow the region’s
economy, hoping to achieve long-term positive growth. In addition to continued support for the
region’s forest industry, local leaders are examining options for developing sectors such as:
alternative energy, health sciences, environmental technologies, film and tourism. Local government
views attracting investment in the tourism, hospitality and recreation sectors as a key priority,
particularly given opportunities related to the Olympics.
Products
Squamish is recognized for its outstanding outdoor recreation assets. The area’s popularity as an
outdoor adventure destination is built upon its wealth of natural attributes, its setting and its
proximity to key markets. It has a well-established inventory of tour operators, offering a range of
outdoor adventure trips. Squamish – and the Sea-to-Sky Corridor more broadly – is also a popular
golf region. Appendix C lists Squamish’s tourism related product. While these are positive
attributes, current facility gaps include a very limited number of food and beverage venues that
would appeal to tourists or families and, as noted earlier in the report, an absence of higher-end
accommodation options, with the exception of smaller properties (such as B&Bs).
Developments
1. Garibaldi Springs
The Garibaldi Springs Golf Resort is the only development proceeding at the current time,
according to the planning department at the District. The golf course component of this
development has recently started operations. The residential /resort component is scheduled to
begin construction in 2005, with 107 condominium units and a 120 suite four-star hotel. The hotel
is a strata titled development and has performed well in terms of presales. This development will be
the only high end hotel development in Squamish.
December 2004
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2. Urban Village Concept
A key initiative that the District of Squamish has proposed is the development of an Urban Village.
The intent is to increase the cultural diversity and attractiveness of the downtown and waterfront
areas in Squamish. Plans potentially include:
High-quality public access;
Retail development;
Restaurant and entertainment facilities;
Accommodation development;
Marinas;
Ferry terminal facilities, with the potential to host cruise ships;
Residential development; and,
Educational and research facilities.
3. Garibaldi at Squamish
The proposed ski resort development would be located at Brohm Ridge just north of Squamish.
The resort, once completed, would have a daily capacity of 19,000 skiers and a vertical rise of 1,000
meters. The housing/accommodation component of the resort would include approximately 1,850
condos, 500 single family homes and 1,500 hotel units. The resort is looked upon favourably by the
Province and is expected to be the primary recreation attraction in Squamish. However, the current
status of the project is undetermined until the consultation with the regional First Nations groups is
completed.
4. Sea-to-Sky Adventure Centre
Squamish is developing a new visitor information centre, which is intended to be a focal point for
the community and for visitors. The Sea-to-Sky Adventure Centre – to be located in the northeast
section of the downtown waterfront Corridor – will be a showcase building featuring marine west
coast design. This is slated for completion by the summer of 2005.
5. The Sea to Sky Highway and Other Transportation/Access Improvements
The improvements to the Sea to Sky Highway are expected to make Squamish a more accessible
destination and will dramatically decrease the travel time between Squamish and Whistler and
Squamish and Vancouver. This is of particular importance for the drive-in market from the Lower
Mainland and the US Pacific Northwest that may be seeking less expensive accommodation than is
available in Whistler.
6. Potential Passenger Rail and Ferry Service
Other potential access improvements include the development of a passenger ferry service between
downtown Vancouver and Squamish and possible re-initiation of passenger rail service. These
developments would significantly improve access to Squamish from the Lower Mainland.
December 2004
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Potential Destination and Marketing Enhancement
As stated earlier, Squamish has well developed outdoor tourism product. Despite the presence of
this product, Squamish is not considered a destination by some key markets. For example, one
operator commented that Squamish is better known as a destination in Seattle than in the Lower
Mainland. It is felt that a concentrated effort initiated by the District would result in increasing the
number of visitors from certain markets, as individual efforts have worked quite well in specific
markets. For example, discussions with accommodation properties revealed that a large percentage
of their clientele is from Europe. These properties have been able to attract guests from this
geographic market as a result of their own marketing efforts (e.g., registering on European Internet
search engines).
Projected Market Performance
In addition to analyzing the existing supply and demand in the region, Grant Thornton has
examined the potential growth in demand for accommodation up to 2010. Demand for
accommodation will be influenced by a number of factors such as population, highway traffic and
the impact of the Olympics. Grant Thornton has factored the following growth projections into the
supply-demand analysis.
The projected increase in the District’s population from 2005-2025 is 63%, representing an
average annual growth of 3.3%.
Traffic on the Sea to Sky Highway is projected to increase by 62% for the period from 2005
to 2025. The resulting average annual growth of 2.8% has been factored into the demand
projections for accommodation.
The most recent growth statistics realized by other host cities during an Olympic year are
4.9% growth in occupied rooms over the previous calendar year, and 17% increase in
average room rates over the previous calendar year. These growth rates have been assumed
for the Squamish region due to its strategic location between Vancouver and Whistler.
Assuming these factors, demand for accommodation in Squamish is expected to increase from
approximately 82,211 occupied rooms in 2003 (hotels/motels, resorts, lodges and cabins) to 125,050
in 2010. Based on these projections, the number of accommodation units (excluding B&Bs) the
region could support is approximately 625 hotel rooms by the year 2010. This also assumes the
market would achieve a minimum annual occupancy level of 55%.15
The current number of hotel and resort rooms is 330. The Garibaldi Springs resort will add a
further 120 rooms, leaving a gap of approximately 175 rooms. During this time period, it is also
15 Historical data for selected properties indicate that the hotel/motel market achieved and annual
occupancy in excess of 60% in 2000 and 1999. A 55% annual occupancy is considered to be minimum
occupancy level that the market could achieve to support existing properties.
December 2004
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anticipated that some of the older hotel/motel properties will exit the market due the following
reasons.
As various construction projects reach completion, the number of workers requiring budget
accommodation will decline. Interviews with budget properties indicate these workers are a
key source of demand, without which these properties would not perform as well.
Real estate prices are expected to continue to increase in Squamish; this is expected to result
in re-development of lots upon which several of the older hotels are now located.
Therefore, the region may be able to support the addition of up to 300 new hotel units in the time
period leading up to 2010. The chart below illustrates the projected change in the supply of
accommodation in Squamish leading up to 2010, assuming the exit of some of the older properties,
the addition of the Garibaldi Springs Resort and the addition of approximately 100 new hotel units.
# of units
Accommodation Supply - Projected
700
600
500
400
300
200
100
0
Existing units
Proposed additions
Total units
2004 2005 2006 2007 2008 2009 2010
Years
Supply-Demand Analysis and Conclusions
As stated in the conclusions to the Accommodation Supply section, the region appears to have a
sufficient number of properties to meet the current level of demand, with the exception of
campgrounds. However, several of the more traditional hotel/motel properties in Squamish are
older and are not well maintained. These properties have sustained market share in the budget
market segment due primarily to competitive pricing; the traditional overnight stay market for
Squamish has typically sought inexpensive accommodation with limited facilities. However, the
condition of many of these properties is not appealing to new markets that are showing an interest
in the region. Approximately four to five of these older properties are expected to exit the market as
land prices in the region continue to increase. This anticipated reduction in room supply will
provide opportunities to develop new and different accommodation properties in the region, which
could better meet market expectations.
December 2004
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The demand projections presented in this section estimate that demand will grow at a fairly
significant rate in the years leading up to the Olympics. An estimated 43,000 occupied room nights
are projected to materialize. While the current supply of accommodation can handle this growth in
terms of capacity, the existing supply is not necessarily suited to the type of visitors that Squamish
would like to attract. A limited number of the hotel/motel properties offer facilities or meeting
rooms, both of which are essential in order to attract multi-day visitors and/or event business (e.g.,.
corporate meetings, weddings, etc.). Furthermore, there is a need for good quality hotel/motel
properties that offer facilities (e.g., pools, restaurants) that will appeal to tourists and families.
Bed and breakfast establishments and resort, lodges and cabins appear to be in good condition and
are satisfying existing demand for these types of properties in the region. There is the potential for
additional resorts, lodges and/or cabin rental developments to enter the market, keeping in mind
that these are specialized types of accommodation that do not generally serve main stream visitors.
This is a niche market with a growing demand base. Continued efforts to capitalize on Squamish
outdoor recreation offerings will generate further growth in demand for this type of
accommodation.
The campground sector is undersupplied in the region. The addition of a new campground in 2005
will help alleviate the demand on existing campgrounds, but further development is still required.
In terms of future accommodation development, the primary issues facing the region are as follows.
The current supply contains several properties that are outdated.
Demand has evolved from industry business requiring basic accommodation properties to a
more sophisticated visitor (e.g., adventure seekers, families, longer stay tourists, corporate
guests). Current and future demand will require good quality accommodation properties
that provide recreation facilities, food and beverage options. These types of properties are
lacking in the region.
The region does not have a coordinated marketing initiative. Individual properties are
responsible for their own marketing. Some have experienced success while others are
struggling.
Squamish has opportunities to improve its reputation as a tourism destination. Even
though its profile will be increased through its strategic location between Whistler and
Vancouver and the approach of the Olympics, it still is not viewed as an ideal location for
continued tourism investment. Further development of the town’s basic infrastructure, its
tourism product and branding is necessary in order to begin attracting significant
accommodation investment.
December 2004
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Accommodation Enhancement and
Development Strategy
Introduction
The preceding analysis leads to several recommendations designed to assist the District of Squamish
enhance the performance of existing accommodation properties and plan for new accommodation
growth over the next five to ten years.
Key Assumptions
Key assumptions related to the following recommendations are as follows.
The District considers tourism development and marketing as priorities within its broader
plan to grow and diversify the area’s economy. This includes infrastructure, service and
civic attractiveness improvements and marketing efforts that help present a unified image of
Squamish as a tourism destination. An important objective related to these initiatives will
be to encourage visitors to stay one or more nights in the region.
The District considers accommodation enhancement and development a critical component
of the area’s tourism growth.
The District continues to implement programs that will revitalize and enhance Squamish’s
downtown area.
The District continues to develop and implement strategies to draw investment to the
region.
The District builds on business and tourism development opportunities related to the 2010
Olympics, prior to, during and following the Games.
Accommodation Development Recommendations
Currently, the Squamish area has an inventory of 330 hotel/motel/resort/cabin rooms (note that
this total does not include B&B rooms and campground sites). The preceding accommodation
demand analysis projects that the Squamish region will experience room demand to support a total
of 600 – 700 hotel/motel/resort rooms by 2010. Consequently, 265 to 365 new rooms can be
added to the market by 2010, as summarized in the table below.
December 2004
41
Accommodation Supply Changes and the Projected Number of Rooms
(2004 – 2010)
Current room supply (2004)
330
Assumed additions to supply (2004 – 2010)
120
Assumed reduction in supply (2004 – 2010)
115
Room supply (2010)
335
Room supply that the market can support in 2010
600 – 700
New rooms that can be absorbed by the market by 2010
265 – 365
Source: Grant Thornton LLP analysis
Given the accommodation gap analysis presented in the Accommodation Supply section and the
demand summary presented above, there are four types of properties that will likely best meet future
demand. When reviewing the following development recommendations, the District should be
cognisant of several qualifiers:
At this time, these are preliminary concepts. Closer to the actual contemplation of any
development, more precise market drivers and investment interests will further refine or
potentially change the following proposed development concepts. Prior to proceeding with
any new accommodation development, a comprehensive feasibility study is recommended
to more precisely identify market demand for the facility and the most appropriate size,
concept and location.
Any significant changes experienced by Whistler will likely impact the Squamish market.
For example, if growth in visitation to Whistler exceeds its room supply, room demand in
the Squamish area will likely increase beyond what this study has projected. Consequently,
the District should be prepared to consider accommodation development that would
provide more than 365 rooms, as needed.
As discussed earlier in the report, the Garibaldi at Squamish (Brohm Ridge) ski
development proposal is uncertain in terms of whether it will proceed and, if it does
proceed, its timing. If this development does go ahead, it will introduce a major, new
attraction to the Squamish area, in addition to a large, new resort room base. With regard to
the accommodation development concepts and number of new rooms recommended in
this study, the District needs to monitor the Garibaldi at Squamish proposal and possibly
adjust this study’s recommendations if the ski resort does proceed.
Given the above qualifiers, the analysis conducted for this study supports the following
recommendations.
December 2004
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1. Good Quality Hotel Located on or Near the Highway
Four factors are expected to generate higher traffic volumes on the Sea to Sky Highway:
Significant highway improvements enabling higher traffic volumes per day;
Population growth in the GVRD, Squamish and Whistler;
Anticipated growth in the popularity of Whistler, largely resulting from the 2010 Olympics;
and,
Potential growth in the popularity of Squamish as a tourist destination.
While there are currently two 3-star hotels located along the Highway in Squamish, the expected
growth in traffic volumes presents an opportunity for an additional highway property. A good
quality (3 to 4 star) property, preferably branded, is recommended.
The planned revitalization of Squamish’s downtown area, coupled with a need to draw new visitors
and encourage visitors to stay one or more nights in the community, supports the concept of
developing a good quality downtown hotel. This type of development would be further supported if
access to the region is increased through the re-introduction of rail passenger service and/or
Vancouver-Squamish passenger ferry service, both of which are under discussion. This hotel could
be located downtown, possibly within the new waterfront development. A good quality, unique
property that complements the waterfront development is recommended. Depending on the
District’s and local residents’ future plans for economic development, including conference and/or
large meeting facilities within this hotel could be feasible.
3. Nature-Based Lodge or Resort
This recommendation builds on Squamish’s potential as a significant adventure and ecotourism
destination. As noted earlier in this report, the area is endowed with many outstanding natural
features and settings that support a variety of high-quality adventure and ecotourism activities.
Assuming that the District and the local industry will be successful in further developing this
product and creating greater market awareness, there is potential to develop one or more higher-end
lodges or resorts. These should be located in attractive, natural settings with good access to activity
areas (e.g., to support various types of outdoor activities that will appeal to a range of visitors).
4. Campgrounds
In addition to the fixed-roof development opportunities discussed above, it is anticipated that
demand for RV grounds and campsites will continue to grow. While one new campground will
likely enter the market in 2005, the District should plan for the development of additional
campgrounds over the next five years.
December 2004
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5. Coordinated Marketing Efforts and Product Quality
The region does not have a coordinated tourism marketing initiative. Individual properties are
responsible for their own marketing. Some have experienced success, while others have struggled to
effectively market their businesses. In order to maximize the potential of existing properties, the
District needs to introduce and/or support coordinated marketing efforts. With regard to standards
in accommodation quality, the District and the industry can initiate programs to improve overall
product quality. Possible initiatives related to marketing and product quality are as follows:
Encouraging coordination of accommodation marketing for the region, through various
partnerships and potentially through funding provided by instituting a local hotel room tax.;
Developing an online reservations system for accommodation properties in Squamish;
Preparing professional marketing materials that are available for all properties in the District
to use;
Participating in targeted industry trade shows in Canada and the Pacific Northwest;
Conducting workshops for independent operators, focusing on the professional operation
and marketing of an accommodation property;
Promoting Squamish as a destination linked to Whistler, focusing on the complementary
tourism assets of Squamish and the reduced travel time between Whistler and Squamish
resulting from the new highway; and,
Encouraging quality enhancements for existing and new properties through greater
participation by individual properties in programs such as the Canada Select
Accommodation Rating program.
6. Bed & Breakfast Guidelines / Policy
As discussed earlier, B&B style accommodation has recently emerged in the Squamish area. Between
2000 and 2005, 15 B&B properties have been established. Given this development, and potential
additional B&B accommodation growth, there is a need for the District of Squamish to guide and
/or manage this sector. Other municipalities/districts have developed guidelines and/or policies
which typically aim to address the following:
Maintenance of health and safety standards (e.g., related to fire, food service, alcohol, etc.).
Adherence to relevant federal, provincial and municipal regulations.
Compliance with relevant zoning bylaws.
Compliance with relevant business regulation bylaws.
Potential overdevelopment of B&Bs, which may adversely impact the character of a
residential neighbourhood and/or may result in an oversupply of B&B rooms relative to
market demand. This latter occurrence may impact the viability of existing B&Bs
December 2004
44
Assurance that the B&B will operate for a minimum number of days per calendar year, to
ensure that it is truly contributing to the accommodation room base and tourism product of
the area.
Location of B&Bs, to ensure:
Their location corresponds with the Official Community Plan (“OCP”), or, can be
accommodated through an acceptable amendment to the OCP;
o Sites are adequately serviced.; and,
o Safe and convenient visitor access.
Site and building design that maintains design goals/criteria established in the OCP.
o
Well-designed signage is used by the establishment (possibly coordinated with other B&B
establishments and the broader accommodation sector).
Professional development/business counselling programs available to B & B operators and
other small business operators.
Sample B&B sector guidelines and/or policies for six BC municipalities are presented in Appendix
D.
Timing and Implementation
This study recommends that the District encourage accommodation growth and quality
enhancement through the initiatives discussed above. The implementation of these initiatives
should be timed to ensure that the District capitalizes on opportunities presented by the Games,
leading up to, during and following the event. High level implementation steps and direction for
each of the initiatives are presented in the following table.
December 2004
45
Accommodation Strategy Implementation Plan
Recommendation
Timing
Lead
Comments
Identify potential sites and the status of sites
(private, Crown, District). Amend zoning, if
required.
2005
District
Potential sites should be easily accessed and visible from the highway. They
should be attractive in terms of neighbouring businesses / development (e.g.,
not located adjacent to heavy industry).
Design a request for expressions of interest
(EOI) and an investment opportunity package.
Advertise the EOI.
2005/06
District
The EOI and the investment opportunity package should provide a qualitative
and quantitative description of the opportunity and concept, in addition to any
investment incentives the District is providing.
Evaluate the responses to the EOI and select
the most suitable candidates.
2005/06
District
2006
Developer /
hotel company
2007/08
Developer/
hotel company
By May
2008
1. Good Quality Highway Hotel
This feasibility study will serve several purposes: verify the business opportunity;
further define the property’s concept, size and amenities; support financing
application and/or investment promotion.
The property should be timed to enter the market:
• In 2008, in order to establish itself in time to attract pre-Olympic visitation.
• During late spring, to ensure it can capitalize on Squamish’s traditional busy
season.
Identify potential sites and the status of sites.
Amend zoning, if required.
2005
District
Potential sites should be centrally located in downtown area, attractive (possibly
located on the water and capitalizing on the outstanding views Squamish offers),
and easily accessed.
Advertise the EOI.
2005/06
District
2005/06
District
December 2004
46
Recommendation
Timing
Lead
Comments
2005/06
Developer /
hotel company
application and/or investment promotion. This study should further define
whether significant conference space within the hotel is feasible, based on
potential market demand from Vancouver.
2007/08
Developer/
hotel company
By May
2008
season.
3. Nature-based Lodge / Resort
Identify potential sites and status of sites.
Amend zoning, if required.
2005
District
Potential sites should have attractive, natural settings with good access to activity
areas (e.g., to support various types of outdoor activities that will appeal to a
range of visitors).
Advertise the EOI.
2005/06
District
2005/06
District
2005/06
Developer /
hotel company
2007/08
Developer/
hotel company
By May
2008
application and/or investment promotion.
December 2004
47
Recommendation
Timing
Lead
Comments
season.
4. Campground(s)
Proceed with the development of the
campground that is currently being
contemplated.
2005
Private Sector
At the time of report writing, the District of Squamish Planning Department
indicated that this development would most likely proceed.
Assess the need for an additional campground
/ RV site.
2005 - 2010
District
Monitor the utilization levels of the new campground, and its impact on existing
campgrounds, to determine if market demand is sufficient to support the
development of another campground at a later date.
If the above monitoring indicates that there
may be sufficient demand to support an
additional campground, design an EOI and
investment opportunity package, and advertise
the opportunity. Select the most suitable
candidate and proceed with the development.
2005 - 2010
District
Encouraging coordination of accommodation
marketing for the region, through various
partnerships and potentially through funding
provided by instituting a local hotel room tax
2005/06
District/industry
Note that all the initiatives noted here should complement and support overall
tourism destination branding and marketing that the District and its tourism
industry is developing as a result of recent and future strategic planning.
Develop an online reservations system.
2005/06
District/industry
See comment above.
Prepare professional marketing materials.
2005/06
District
Participating in targeted industry trade shows.
2006 ongoing
Industry
See comment above.
Conduct professional development workshops
for independent operators, on a cost-recovery
basis.
2005 ongoing
District
See comment above.
Promote Squamish as a destination linked to
Whistler.
2005 ongoing
District/industry
See comment above.
5. Coordinated Marketing & Product Quality
December 2004
48
Recommendation
Encouraging quality enhancements for existing
properties through greater participation by
individual properties in programs such as the
Canada Select Accommodation Rating
program.
Timing
Lead
Comments
2005 ongoing
District/industry
See comment above.
2006
District
These guidelines should be developed to manage issues related to this sector’s
growth, safety/health standards, design standards, appropriateness of location,
supply relative to demand, and product quality. Examples of B&B
guidelines/policies from six jurisdictions are provided Appendix D. A variation
of the Resort Municipality of Whistler’s guidelines may best meet the District’s
needs.
6. Bed & Breakfast Guidelines/Policy
Develop B&B guidelines / policy at the
District level.
December 2004
Appendices
Appendix A
Detailed Accommodation Inventory
Appendix B
Supply-Demand Analysis
Appendix C
Inventory of Tourism Product
Appendix D
Sample Bed & Breakfast Policies/Guidelines
49
December 2004
Appendix A: Detailed Accommodation Inventory
50
December 2004
51
Appendix B: Supply- Demand Analysis
Time
Period
1950 1979
Accommodation
Supply
Chieftan
Sea to Sky:
Ocean Port
August Jack
Cozy Motel
Garibaldi Budget
Inn
Total (approx)
# Units
44
52
17
38
16
30
197
Key Demand Drivers & Market Trends
•
Industrial activity related to resource
industry
Key Markets
•
•
Resource industry
workers
Some
professionals
related to resource
industries –
government and
private sector; this
generates both
room night and
meeting space
demand
Implications in terms of
Accommodation Supply
•
Primarily economy-style
hotels and motels
•
Sea to Sky entered the
market in 1974, providing
the largest room base and
the only conference space
in the region
December 2004
Time
Period
1980 1999
Accommodation
Supply
Existing:
# Units
197
Additions:
Super 8*
Howe Sound Inn
Sunwolf Outdoor
Dryden Creek
Sea to Sky Stables
Total Additions:
87
20
10
5
7
129
Total (approx):
326
•
•
•
•
Resource industry still active in the 1980s,
but starts to decline in the 1990s
Growth in adventure and ecotourism
worldwide
Whistler emerges as a world-class ski
destination
Whistler starts to develop its four-season
product
52
Key Markets
•
•
•
•
Some resource
industry workers,
however, this is
starting to decline
Some
professionals
related to resource
industry –; this
generates both
room night and
meeting space
demand; however
this is starting to
decline
Some outdoor
adventure /
ecotourism leisure
travelllers
Some Whistler
overflow
•
Existing room base from
1950 – 1979 is aging
•
Super 8 entered the
market with 87 units in
1998, providing new and
more professionally finished units, in addition
to meeting space and
family amenities (pool
etc.)
•
Howe Sound Inn entered
market with 20
“specialty” rooms, in
addition to a brew pub,
restaurant and meeting
space
•
Two properties, catering
to outdoor adventure,
entered the market:
Sunwolf and Dryden
Creek
December 2004
Time
Period
2000 2004
Accommodation
Supply
Existing:
# Units
326
Additions:
15 B & Bs
2 Hostels
Ring Creek
Tantalus View
Total Additions:
33 +
6+
3
2
44+
Total (approx):
370 +
•
•
•
•
•
•
Resource industry, and related room
night business continues to decline;
although, this market still generates some
accommodation demand
Whistler’s reputation as a world-class,
four-season destination continues to
grow
Squamish’s reputation as an outdoor
adventure (particularly rock-climbing)
destination grows (however, there is
potential for more growth)
Vancouver and Whistler win the bid to
host the 2010 Winter Olympics
Highway improvements commence
Land prices increase
53
Key Markets
•
•
•
•
•
Some resource
industry workers
and professionals,
although this is
continuing to
decline
Whistler overflow
Whistler staff
Adventure and
ecotourism
markets growing
slowly (North
American and
European)
Highway road
crews
•
1950 – 1979 continues to
age and primarily serves
budget travellers and
work crews
•
B & Bs enter the market,
primarily located in an
upscale residential
neighbourhood –typically
catering to higher-end
leisure visitors
•
Two hostels enter the
market, primarily catering
to the younger, outdoor
adventure market
December 2004
Time
Period
2005 2010
Accommodation
Supply
Existing:
# Units
370+
Potential demand generators -- trends:
Population growth: GVRD and
Squamish
•
Economic diversification
•
Whistler flow and overflow
•
Olympics: prior to, during, legacy
Potential demand generators -- products:
•
Outdoor adventure, ecotourism, ski, golf,
health
Potential demand generators -- developments:
•
Brohm Ridge (ski)
•
Transportation/access -- Significant
Hwy. Devt.
Potential destination & marketing
enhancement:
•
Destination vision, development,
enhancement
•
Focused marketing and branding
•
Coordinated accommodation industry
programs
•
Deletions:
Cozy Motel (2005)
Total existing
Potential
additions:
Garibaldi Springs
(2005)
Total Additions:
-16
354
135
135
489
Total (estimate):
54
Key Markets
Potential markets primary:
•
Leisure
• Lower Mainland
• Pacific
Northwest
Potential markets secondary
•
Leisure
• Europeans
• Long-haul N.A.
• Asian
•
1950 – 1979 continues to
age and will likely be
replaced by new
development as real estate
values increase
•
Growth in real estate
values will potentially
result in the sale of older
properties
December 2004
55
Appendix B (cont’d)
Properties Listed Chronologically
Property Name
Type
# Units
Chieftan Hotel
Cozy Motel
Garibaldi Budget Inn
Sea to Sky Hotel
August Jack Motor
Ocean Port Hotel
Dryden Creek Resort
Sea to Sky Stables
Company
Bella Vista B&B
Rainforest Backpacker’s Hostel
Squamish International Hostel
Ring Creek Cabins
Tantalus View Retreat
McQuinn Manor B&B
Cranberry Cottage
Glacier Gallery B&B
Nomad’s Rest B&B
True North B&B
Glacier View B&B
Home Sweet Home B&B
Coneybeare Lodge
Smoke Bluff B&B
Hotel
Motel
Motel
Hotel
Motel
Hotel
Resort
Cabins
Specialized (chuck wagons)
44
16
30
52
38
17
5
10
7 (84 people)
Hotel
20
Hotel
B&B
Hostel
Hostel
Cabins
Chalet
B&B
B&B
B&B
B&B
B&B
B&B
B&B
B&B
B&B
87
2
N/A
6 + dorms
3
2
2
1
3
3
2
2
3
3
2
Year
1950
1960
1974
1974
1974
Prior to 1980
1988
1994
1995
1996
1998
2000
After 2000
After 2000
After 2000
After 2000
2001
2002
2002
2002
2002
2003
2003
2004
2005
December 2004
Appendix C: Inventory of Tourism Product
Parks and Natural Attractions in the Squamish Area
Stawamus Chief Provincial Park
Porteau Cove Provincial Marine Park
Brackendale Eagles Provincial Park
Shannon Falls Provincial Park
Brohm Forest Recreation Site
Garibaldi Provincial Park
Cat Lake Forest Recreation Site
Tantalus Provincial Park
Alice Lake Provincial Park
Britannia Beach
Murrin Provincial Park
Human-made Attractions in the Squamish Area
BC Museum of Mining
West Coast Railway Heritage Park
M.V. Britannia Tours
Art gallery
Royal Hudson Steam Train
Brennan Park Leisure Center
Activities – Squamish Area
Summer
Mountain biking
Hiking
Golfing
Fishing
Swimming
Scuba diving
Windsurfing
Horseback riding
River rafting
Kayaking/ canoeing
Camping
Mountain and rock climbing
Winter
Skiing and ski touring
Snowmobiling
Eagle viewing (Nov-Jan)
December 2004
Tour Operators in the Squamish Area
Sea to Sky Kayak Center
Austen Tours
Sea to Sky Ocean Sports
Black Tusk Helicopter Inc.
Sea to Sky Stables
Black Tusk Snowmobile Club
Slipstream Rock and Ice
Canadian Outback Adventure Company
Squamish Rock Guides
Coastal Mountain Air
Sunwolf Outdoor Center
Compass Adventure Ltd.
Valley Fishing Guide
Elaho River Adventure
Vertical Reality Sports Store
Glacier Air
Wild Rock Adventures
Rivers and Oceans Expeditions Inc.
Ocean West Expedition Ltd.
December 2004
Appendix D: Sample Bed & Breakfast Guidelines/Policies

Ramada Hotel and Suites

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