Tourism Opportunity Analysis Adventure/Extreme Adventure Tourism in the Grande Cache Region PREPARED FOR: Alberta Economic Development PREPARED BY: Kalahari Management Inc. New World Expeditions Pam Wight and Associates March 2001 Tourism Opportunity Analysis Adventure/Extreme Adventure Tourism in the Grande Cache Region PREPARED FOR: Alberta Economic Development PREPARED BY: Kalahari Management Inc. New World Expeditions Pam Wight and Associates March 2001 Table of Contents Executive Summary 1 1.0 Introduction 5 1.1. Study Purpose 5 1.2. Background 5 1.3. Overview of Grande Cache Region 6 1.4. Method of Study 7 2.0 Adventure Tourism/Extreme Adventure 10 2.1. Situation Analysis and Resource Inventory 10 2.2. Summary of Site Inspections 14 2.3. Summary of Community Interviews 15 2. 3.1. Interviews With Marketing Representatives 16 2.4. Map of Existing Tourism Usage 17 3.0 Potential Markets 17 3.1. Findings From Secondary Market Research 17 3. 1.1. Grande Cache- Secondary Market Research 22 3.2. Findings From Telephone Interviews 25 3. 2.1. Findings From Recreation Associations 25 3. 2.2. Findings From Inbound Tour Receptives 26 3.3. Issues and Challenges Regarding Potential Markets 27 4.0 Assessment 27 4.1. Assessment of Existing Tourism Products, Services and Events 28 4. 1.1. Commercial Outfitters Based Outside Grande Cache 30 4. 1.2. Visitor Information Centre 31 4. 1.3. Death Race Special Events 32 4.2. Assessment of Local Support for Existing and New Tourism Products 33 4.3. Assessment of Products, Services and Events 34 4.4. Grande Cache As An Adventure Destination 36 5.0 Opportunities 38 5.1. Opportunities for Tourism Development 38 5.2. Increasing the Extended Stay Market 40 5.3. Positioning Strategies 41 5.4. Communities With Similar Histories 42 5.5. Map of Possible Tourism Uses 43 6.0 Implementation Strategies 43 6.1. Implementation Strategies For All Sectors 43 6.2. Implementation Strategies – Product Specific 46 References 48 Appendices Appendix A – Secondary Market Research Tables ii Appendix B – Telephone Survey Summary x Appendix C – Organizations Interviewed During Site Visit xviii Appendix D – Major Man-Made Tourism Resources xix Appendix E –Websites Profiling Comparable Products/Destinations xxi Executive Summary Grande Cache, located in a spectacular mountain setting, offers opportunities for a wide range of adventure tourism activities. Tourism has existed in this community for many years but recently, more effort has been made to develop the region as a destination for adventure and extreme adventure tourists. A Tourism Operators Association has been formed, a marketing plan developed in conjunction with Travel Alberta, and work started on a Trails Project (to improve awareness of existing trails and access to recreational resources). The operators association has been tireless in its efforts to promote tourism in the area, and the Trails Working Group has contributed significant time to their mapping activities. Grande Cache hosted the Canadian Death Race Run in 2000, an extreme adventure event that was very successful as a special event, attracting athletes and media attention from around the world. In early 2001, a tourism opportunity analysis study was undertaken to determine what resources exist, or can be developed, to support adventure/extreme adventure tourism products, and what the market potential is for adventure products within the region. An assessment of adventure tourism viability was felt to be a valuable step in sharing information on the possible opportunities for future growth of adventure tourism. The study consisted of a review of secondary market research, directed interviews with representatives from tourism recreation associations and inbound tour operators, a site visit to assess product quality and potential, and interviews with community members. The secondary market research yielded some generalizations about characteristics and preferences of adventure travelers. The most important are: • Adventure travelers tend to be 25-55 years old although there are significant numbers of soft adventure travelers who are 55+. • Males and females are generally well represented with participation varying by activity. Those activities that are more strenuous tend to attract younger, male travelers. • Most are married and will travel with their spouse or friends. • Adventure travelers are well educated, often having graduate or undergraduate degrees. • Income for these travelers is higher than average and many come from professional or managerial occupations. • They often live in urban areas. • Most popular activities with this group are hiking, camping, rafting, wildlife viewing, cycling, canoeing and educational tours. • Accommodation preferences range from tents to hotels, B&Bs, cabins and lodges. • Reasons for taking an adventure travel vacation revolve around the natural environment i.e. seeing it, experiencing it, having adventures, being away from crowds and civilization, and personal growth through education or challenging activity. • A destination is chosen most often for the scenery, the presence of certain physical features like lakes or rivers, or the opportunity for new experiences. Tourism Opportunity Analysis: Adventure/Extreme Adventure Tourism in Grande Cache 1 Information from the directed interviews yielded similar preferences for outdoor recreationists: • In a travel experience, outdoor recreationists look for: • unique experiences and places • the chance to do or go someplace “new” • scenery • challenge • some infrastructure • affordable cost • An attractive destination is one that provides: • good services/facilities (do not have to be fancy) • a variety of terrain with beginner to advanced levels of difficulty for recreational activities e.g. hiking, biking • natural resources such as wildlife, mountains • Accommodation preferences are for: • Clean rooms • Affordable • Tented camps (especially if fixed roof is not possible) • Hot water for showers, potable water for drinking • Remoteness or perceived remoteness is important to many adventure travelers • Scenery is very important • Outdoor recreationists are willing to travel between 4 to 8 hours from a major airport Grande Cache would appear to offer many of the activities and settings that adventure travelers have indicated as desirable, or that influence their destination selection, and is well positioned to capture their business. Specifically, Grande Cache possesses: • an extremely attractive physical setting • a protected area that: • supports a healthy ecosystem • will not be given over to other uses, thus providing stability for tour operators • diverse wildlife populations • trails for hiking, biking, trail riding and cross-country skiing at a variety of skill levels and trip lengths • rivers for rafting, canoeing, and kayaking at a variety of skill levels • accommodation suitable for adventure travelers • an established group of adventure tour operators • a large, well-placed visitor information centre with full time staff • a successful special event that has gained recognition internationally • a location that is 2.4 hours from an international destination (i.e. Jasper National Park) and on one of the shortest, most scenic routes to Alaska It would appear at first glance, that certain market segments, i.e. organized bus tours, would not be a good market match with Grande Cache’s existing product base, as its hotels are not 3 star and it is over 4 hours to a major airport. However there may be opportunities that have been overlooked. Although Grande Cache is too far from a major airport for these clients, there are Tourism Opportunity Analysis: Adventure/Extreme Adventure Tourism in Grande Cache 2 significant numbers of people in Jasper (slightly over 2 hours drive away) who could be bused to uncrowded Grande Cache on a day trip, to participate in adventure or cultural experiences. Some skill development is required, but the culture of the Aseniwuche Winewak Nation could form the basis for an aboriginal tourism product that would appeal to a wide range of market segments. Many of the tourism businesses in Grande Cache, with the exclusion of accommodation providers, are currently running at a low capacity, usually around 30%. However they do demonstrate the ability to deliver a world-class product as a slightly larger number (51%) of their customers are coming from other parts of North America or overseas, and a large percentage of these people (68%) came specifically for the adventure activity (Ference Weicker, 2000). The success of Death Race Run 2000 has provided a signature event for the community to rally around, and has provided increased confidence around community ability to become a well- known adventure destination. Plans are underway to expand the Death Race events with Death Ride (mountain biking) and Death Snowshoe competitions. This series of events represents significant potential to Grande Cache for increasing its destination awareness, and in stimulating growth in adventure tourism products and services. Based upon the study findings, it appears that Grande Cache contains many of the elements needed for an adventure tourism destination, and that the market characteristics and potential size could provide for a viable product/market match. It is difficult to estimate the potential market size for the study region, although research would indicate that adventure travel is a large market, and Canada as a country has considerable untapped potential in the adventure travel marketplace. Determining Grande Cache’s potential market size as a destination will depend upon a number of factors such as: • success in marketing • ability to deliver consistent, quality adventure experiences • effect of multiple activities being developed simultaneously • competition from other destinations with similar products • global economic forces e.g. strength of Canadian dollar, levels of disposable income, etc. However, for Grande Cache to develop successfully, and to realize this market potential, it will need to resolve a number of issues, including capacity development, potential conflicts with multiple land use as utilization increases, and a lack of destination awareness. Grande Cache currently has a wide range of adventure products, such as, rafting, hiking, trail riding, kayaking, wildlife viewing, photography and snowmobiling. Many of these activities are available through tour operators or can be done on a self-guided basis, although equipment rentals are limited. Some activities such as trail riding, are provided by a number of operators, others, like hiking, are offered by only one company. With the market potential that exists, the attractiveness of the activities and the setting, there are many opportunities to increase capacity with appropriate product and market development. Accommodation is adequate by adventure travel standards, although at times, fully booked. Concerns have been expressed about the quantity and range of accommodation available, but experience shows that the adventure traveler is by nature, more flexible in accepting lower quality supporting facilities if the core experience is unique or well delivered. Thus, the structure Tourism Opportunity Analysis: Adventure/Extreme Adventure Tourism in Grande Cache 3 currently exists to compete as an adventure destination but there may be opportunities for future development. Presently, no major conflicts have been noted between tourists, or between tourism activities and industrial users, e.g. forestry. As growth continues, it is likely that problems will arise between users as their activities bring them into greater contact. Communities in similar situations have found that success as a tourism destination depends heavily upon active stakeholder participation in land use planning. Grande Cache may benefit from a similar process. Grande Cache must also deal with its lack of name recognition among adventure tourists. This can be done by increasing those marketing activities that promote Grande Cache as a destination that offers a whole range of adventure products in one scenic setting, or a chance to experience the undiscovered. It is important to convey the sense of challenge and unique experience available in Grande Cache. It may also be helpful to include the affordable nature of many of its experiences in marketing messages. This process has been started already; the Grande Cache 2001 marketing plan includes an agreement and commitment to market the community as one “offering personalized outdoor experiences in an unspoiled, uncrowded Rocky Mountain Setting”. As one of the less-known regions of the Canadian Rockies, Grande Cache will need to establish a competitive advantage over its better-known neighbors, such as Jasper National Park and town- site. Grande Cache can compete by promoting its ability to offer a wide range of activities in a wilderness setting, and with some product development, offer experiences not found in the Mountain Parks, for example, viewing of dinosaur tracks, or visits to aboriginal settlements. Grande Cache provides a wilderness experience that is no longer common in Canada’s popular national parks, and some of the adventure activities such as whitewater rafting, provide a more challenging experience, and offer more spectacular scenery than that found on rafting trips in the Jasper area. Implementation strategies have been identified which focus on product development, resource management, community involvement and market development. They represent the areas where effort is needed to improve the Grande Cache adventure tourism base. Product-specific strategies that relate to rafting/kayaking, hiking, trail riding, fishing, wildlife viewing, and special events have also been provided. Overall, Grande Cache meets the criteria of a viable adventure/extreme adventure destination. It possesses the core elements needed to offer an adventure product and in sufficient size to establish itself as a destination for the adventure seeker. Its successful development will require tour providers, in conjunction with other stakeholders, to address the issues surrounding potential future conflicts with multiple land uses, and to increase the destination awareness through effective market development. Tourism Opportunity Analysis: Adventure/Extreme Adventure Tourism in Grande Cache 4 1.0 Introduction 1.1 Study Purpose The purpose of this study was to determine the capacity to develop adventure or extreme adventure tourism in the Grande Cache region. Some success has been enjoyed to date in attracting adventure tourism clientele. To meet the overall study objectives, goals were set. They were: • to determine what resources exist or can be developed to support tourism activities • to assess market potential for adventure products in the Grande Cache area • to identify tourism products most suited for the resource base and with the greatest market potential • to provide a critical assessment of adventure tourism viability in the area • to determine the level of tourism stakeholder support for adventure tourism activities • to provide an implementation plan for the development, marketing and evaluation of tourism products 1.2 Background The focus of this study was to determine the existing capacity and future potential for adventure or extreme adventure travel in Grand Cache. It is important that a common understanding for what constitutes adventure travel exists. A relatively simple definition is provided by Darst &Armstrong (1980), whereby adventure travel is “all pursuits that provide an inherently meaningful human experience that is related directly to a particular outdoor environment – air, water, hills, mountains”. This is a very broad definition and can cover a range of experiences. The types of activities that are commonly provided by organized and commercial operators, and that can be considered under the adventure travel category (Sung et al 1996) are shown below. Most Commonly Provided Outdoor Adventure Travel Activities Arctic trips Backpacking Ballooning Bicycling Bird watching Bungee jumping Camping Canoeing Diving (scuba, sky) Dog sledding Fishing Four wheel drive trips Hang gliding Hiking Horseback riding Hunting Jungle exploring Kayaking Motorcycling Mountain biking Mountain climbing Nature trips Orienteering Paragliding Rafting Rappelling Rogaining Safaris Sailing Snorkeling Skiing Snowshoeing Snowmobiling Skydiving Spelunking Survival & wilderness training Soaring Walking tours Windsurfing Trekking Tourism Opportunity Analysis: Adventure/Extreme Adventure Tourism in Grande Cache 5 With the wide range of activities, it is not surprising that adventure tourism is one of the largest sectors of the tourism industry and is showing some of the highest rates of growth. The Travel Industry Association of America 1997 study of adventure travel shows that one in two Americans is an adventure traveler and spends $820 to $1,275US on an adventure vacation. Adventure tourism encompasses people with a broad range of abilities and interests. Some, such as bird watching, require little physical exertion or conditioning, and expose people to limited risk. These are considered to be “soft” adventure products and have the largest market size as their appeal crosses all age groups and backgrounds. Other types of adventure tourism experiences, often labeled “hard” adventure, need some degree of physical conditioning and technical skill. They are accompanied by managed, but real risks to the participant. Examples of these activities might be whitewater kayaking or mountaineering. In recent years, there has been an expansion to the adventure travel market with the advent of extreme adventure events. This type of product usually involves a combination of sports such as hiking, rafting, climbing, biking, kayaking, or orienteering, done in challenging physical environments with time constraints. Appealing to both men and women, participants can compete individually or as members of a team. Extreme adventure events gained international recognition with the launch of the Mark Burnett’s EcoChallenge event in Whistler, B.C. in 1996. Now several hundred extreme adventure events are being held each year around North America. 1.3 Overview of Grande Cache Region Grande Cache is located on the edge of the Willmore Wilderness Park in western Alberta. It sits at an altitude of approximately 1,240 meters and is surrounded by a vista of nearly two dozen mountain peaks. The area around the town is rich in natural resources such as timber, coal, and oil and gas. The “New Town of Grande Cache” was established in 1969 to support coal mining. Located approximately 150 kilometers northwest of Hinton and 180 kilometers south of Grande Prairie, Grande Cache is home to approximately 4,400 residents. Historically, coal mining has been the major employer in the town. At its peak, 1200 people worked at the Smoky River Coal mine. With the softening of world coal prices and other factors, the mine suffered a number of setbacks. In March 2000, the mine was closed. Interest has been expressed in re- establishing coal mining within the former mine site. Other forms of economic activity in Grande Cache have been forestry and employment at a minimum-security correctional facility. Weyerhaeuser Canada operates a sawmill with an annual capacity of 109 million board feet, and has an extensive Forest Management Area (FMA) south and north of the Grande Cache region. Other FMAs within the area include Weldwood of Canada Willmore Wilderness Park Ltd. and ANC Timber Ltd. The correctional facility has been a from Sulphur Gates major employer in the area, although the change from medium to minimum security in 1999 resulted in the loss of 100 positions. Tourism Opportunity Analysis: Adventure/Extreme Adventure Tourism in Grande Cache 6