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Business not-so usual

Growth in regional visitors helps Whistler fend off tough economic year

With a collective sigh the resort is getting ready to put the winter season to bed.

For some it’s not a moment too soon as challenges in getting long-haul U.S. travellers to the resort continued to plague businesses all winter.

For others the season’s ups and downs were predictable.

Tourism Whistler’s President Barrett Fisher acknowledged that U.S. long-haul business was down 20 to 25 per cent.

And room-nights were down seven per cent overall.

That’s significant when you realize that the U.S. market has traditionally made up 40 per cent of the visitors to Whistler.

However, strong gains in the regional market, and increases in visitors from Eastern Canada and other traditional markets such as the U.K. and Australia somewhat mitigated what could have been a disastrous year.

"This has been a tough year for us," said Fisher.

"But at the same time we are fortunate that we do have a balanced portfolio of markets and that we have mitigated some of the larger decreases by the strengths that we have within Canada and the U.K. primarily."

The decrease in U.S. travellers was no surprise to Tourism Whistler, which had research to that effect early on. It was one of the reasons why the organization focused on regional marketing and promotions in certain destination markets, along with the U.S.

There were still grumblings in the resort that the mountains and others should have been more proactive in cutting costs early on as it became apparent that U.S long haul guests were staying away.

But Fisher defended her organization saying that Tourism Whistler is aggressive and it works to maintain the resorts prestigious but affordable reputation globally.

"Dollar for dollar we believe that Whistler offers the best value and we will make sure that we maintain our competitive edge," she said.

"We are rolling out programs in all of our markets and planning for next season and we will be as aggressive as ever.

"Tourism Whistler rolled out a television campaign to the regional market letting them know that Whistler is, even in high season, very good value. Sometimes it takes a little bit of time for the perception to catch up with the reality and that is why it is important that we hammer home the messages that Whistler is good value.

"We do have to make sure that we are customer driven and that we do have to meet the needs of what customers are looking for in today’s market place. But we refuse to get caught up in any stereotype that Whistler is this or Whistler is that.

"We are adapting to the market place, we are flexible, we are agile and we will absolutely be competitive."

For the mountains part, spokesman Christopher Nicoloson said, "It’s fair to say our destination visits have been down this year and as we look into next year we definitely have some challenges in those markets that we are looking at finding solutions to right now."

Early on, said Nicolson, the mountains adopted a strategy to try and make sure that all regional and local skiers and boarders knew that they could get day passes for great rates.

"There are all kinds of programs to ensure they don’t pay full price," he said.

"I do think the resort is looking at affordability.

"We have seen an increase in the regional market and the regional market is very vocal and I do think the larger resort of Whistler is listening to that and Whistler is accepting that and starting to make some changes."

Still Nicolson is adamant that when you look at what the mountains offer the ticket price is great value.

But, no matter how you look at it fewer visitors meant fewer shoppers, and diners.

"Everybody knows that business has been a little off," said McCoos co-owner Jeff Coombs who has been in business for 17 years in the resort.

"Through December, January and February we didn’t nail targets for one of those months. It looks like we will reach our target for April but the figures were well off for the early part of the season."

Coombs estimates his business is off 10 per cent from last year and last year was down 11 to 12 per cent from the previous year.

"Sale" signs have been up all over the resort throughout the season as retail outlets try and move merchandise. No one wants to have last years stuff on hand next season said Coombs.

"The whole key to retail is looking fresh at the beginning of the season so we don’t want any of that old stuff hanging around," he said.

Coombs is optimistic about next year but he believes the slowdown in the resort will last at least another year.

Hotels have also been hit with the drop in destination tourists. While the growth in regional visitors has really helped said Tim Morrison, general manager of the Pan Pacific, there is no escaping the fact that they do not spend as many nights at a hotel as their destination counterparts.

Morrison was prepared for the slow down because he had already experienced the same trend while working in Vancouver. He took up his post with the Pan Pacific in Whistler just four months ago.

"Last year I was down in Vancouver and it has had its challenges for the last couple of year," he said.

"Up here you heard that everyone was still achieving their numbers and their rates but this year is an indication that that isn’t true. The challenges were just later coming. I’ve been there and I have experienced it and now I am in a position to go after the business and that is exactly what we are doing."

Morrison said there has been a realization in Whistler that the regional customer must be brought into the marketing mix long term.

"We can’t rely on the destination market," he said.

The Pan Pacific had a strong December and January but February was off and so was April.

Over at Canadian Snowmobile Adventures it’s generally smiles all around.

"The season started off really well thanks to the early snowfall and we got the snowmobiles out a lot earlier," said marketing manager Angela Percival.

"And Easter was fantastic."

Still, numbers are down from a couple of years ago said Percival.

The company is already taking bookings for its ATV business and Percival said she is optimistic about the summer.

The Canada West Ski Areas Association is predicting that skier visits to B.C. will be just over the 5 million mark this year. The number of visits has increased every year since 1980.

"On the whole it has been a good season and people are optimistic as we head towards the future, especially as we look at (the 2010 Olympic Games,)" said Jimmie Spencer president and CEO of the Association.

He believes that the product Whistler offers is outstanding but times may be dictating new perspectives for the resort.

"I think the mountain has great deals," said Spencer.

"But I would say the hotels and the restaurants have to re-think their pricing strategy. I know that when people go there the cost of rooms and restaurants are a pretty key factor."

There are a host of reasons why the number of people coming to Whistler to stay is down.

Many Americans are "cocooning" and staying close to home as the war in Iraq continues and the threat of terrorism looms. The U.S. economy also remains soft and the Canadian dollar is stronger than it was a year ago.

And low interest rates have led to more people investing in real estate or their homes instead of holidays and travel.