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Business better than expected in summer ’09

Room nights up over last June, July but consumer still price sensitive

Joey Gibbons wasn't sure what to expect of business this summer, coming as it did on the heels of the toughest winter he's ever had in business.

But for his four long-standing Whistler bars/clubs, including the Longhorn and Buffalo Bill's, the stars seemed to align beginning in June, making summer 2009 one of the best on record.

"All of the right pieces lined up for us," said Gibbons. "It's been a really good summer.

"We have the best staff we've ever had and the best management we've ever had... Basically when we got the weather we were prepared for it and were able to do well with it."

From the never-ending sunshine, the all-but-finished highway, the Olympic buzz, the annual festivals, many Whistler businesses have come out of the summer smiling, collectively sighing and taking a deep breath in anticipation of what's to come this winter season.

Gibbons is cautious and sensitive when he speaks about his numbers, well aware that the recession has stung other businesses. But he is not alone in his summer success.

Some businesses are posting double digit increases over last summer. This, after bracing themselves for an uncertain summer season.

Wayne Katz, owner of Zog's, Gone and Moguls' in the village, said August was up 17 per cent over last year for his three stores combined. July was up four per cent over last year.

"It was very busy," he said simply, taking the unusual step of sharing his numbers in the hopes that it will help other local business owners.

"I have to believe that people came out of interest for the Olympics," added Katz. "I have to think that."

While Katz's stores aren't at quite the 2007 sales levels, his best on record, they are up significantly over 2008.

But is it the Olympic buzz creating the business, or are other factors at play?

"Certainly Mother Nature definitely helped us out," said Whistler Blackcomb's President and Chief Operating Officer Dave Brownlie.

"It was an incredible summer from a sun and... warmth point of view and that certainly translated into great business both up the hill to use the Peak 2 Peak gondola and the hiking trails, and also in our mountain bike park."

A small Whistler Blackcomb survey this summer showed that of the people going up the mountains, 76 per cent were going mainly because of the new record-breaking gondola.

When further asked if the Peak 2 Peak influenced their decision to come to Whistler, 58 per cent said it was either a major or a minor factor.

"So, it's both bringing people to Whistler and it's certainly getting them up the mountain, so it's very exciting for us," said Brownlie.
"In terms of overall visitors (this summer), we certainly exceeded our expectations."

While guest numbers may be up, there are lingering effects of the recession permeating the resort. Simply put, consumers aren't opening their wallets the way they once were.

"Overall volumes in the bike park and going up the mountain are stronger than they've ever been, but what we're seeing is that people are definitely not spending as much money," added Brownlie. "So whether it's food and beverage or in retail... certainly our revenues per visit are not quite what we've seen in the past on those ancillary businesses.

"The consumer is more value conscious. They're not quite spending as much money, but hey, at least we are getting them here."

While that's great news for pubs and cafes, this price sensitive consumer is affecting Whistler's higher-end restaurants, like the landmark Rimrock Café.

Owner Bob Dawson said they decided to keep their three-course special ($39 for May and June, and $49 for July and August), throughout the summer to entice people in, after a tough winter season.

"It keeps everybody busy," he said. "The last thing you want to do is lay people off and re-hire and re-train.

"We were down in the winter and going into the summer, that's always a scary thought."

As it turns out, business at the Rimrock was better than he anticipated, with August likely to stand out as the best month this summer. But the summer is not when Dawson typically makes money.

He expects to be down nine per cent overall this year.

Araxi, with its prime village location with patio, has had a great summer, said owner Jack Evrensel.

"The weather has always been a factor in the summertime," he said.

"I didn't think it would be this good."

There is what he calls the x factor of Hell's Kitchen - Araxi, and Whistler, will be featured prominently in the Sept. 22 episode as celebrity chef Gordon Ramsay gets closer to choosing a winner and giving them the prize of working at Araxi.

Every Tuesday and Wednesday the restaurant runs the show along with a $35 dinner. They have been consistently sold out, said Evrensel.

The surprise success of summer has been a welcome change to terrible winter of 2008/'09.

Evrensel is more optimistic for the winter ahead with the other x factor of the Olympic Games to consider.

Already, they are seeing corporate guests, connected with the Games, in their Whistler dining room.

Tourism Whistler's Louise Walker, manager of research, also said the numbers have come in better than anticipated and up over last year. That, however, does not necessarily translate to a fatter bottom line in the accommodation sector.

"We were set for a challenging summer and all the hotels and accommodation partners worked really hard with special offers and have been determined to get people to Whistler, and June and July were better than expected," said Walker.

June was up five per cent over June 2008, and July was up two per cent over July 2008. Bear in mind, 2008 was the third busiest on record, in terms of room nights.

Though August's figures are not yet in, Walker said anecdotally she's heard August was quite busy.

"Overall I'd expect the whole summer to come in on par with last summer in terms of room nights," she added.

Though the special offers on accommodation are bringing more people to the resort, and in turn, generating in-resort spending, discount rooms also affect the bottom line.

Tourism Whistler, however, will not release the average daily room night rate this summer due to commercial sensitivity.

Room night specials are also contributing to the trend toward last minute bookings, where the regional guest can judge the weather, the special offers, the in-resort events, and decide if they want to come.

Thirty per cent of bookings in July, said Walker, were made in the same month.

"With the economy the way it is, people are tending to stay closer to home and so it's those people that are in that great position of making those last minute decisions," she added.

That trend has spilled over to activities.

Craig Beattie, general manager of Canadian All Terrain Adventures (Canadian Snowmobile Adventures in the winter), noticed the trend toward last minute bookings too.

While their large group business of up to 75 people is down, there have been small group bookings coming in at the last minute.

"Overall it's been a great summer," said Beattie. "We kept it pretty status quo from last year and it's worked out well for us."

The company has adjusted to the changing economy. They've downsized operations, and are offering new products.

Now, with the shoulder season upon Whistler, businesses are bracing for the unusual season ahead.

Gibbons, for example, is spending the coming weeks getting his bars and clubs polished with a view to the world's eye coming to Whistler in February 2010 for the Olympic Games.

He said: "We're really just going to concentrate on looking the best we can look."