Final results strongly suggest that the Cabot 500 celebrations provided a significant boost to the provincial tourism industry. An estimated 69,000 additional tourists arrived in the Province last year, representing a 22 percent increase from the previous year and an incremental contribution of nearly $37 million to the economy. Tourists from Ontario, Western Canada, the United States, Great Britain and Germany accounted for virtually all of the gain in non-resident visitors. In addition, it is estimated that $8.7 million worth of free advertising was generated by the media coverage surrounding the celebrations, which is expected to pay dividends in the future.
One of the major beneficiaries of the Cabot 500 celebrations was the accommodations sector. Capacity increased significantly prior to the festivities to meet the anticipated demand. The number of licensed properties jumped to 533 in 1997, up 30 percent from 409 the previous year. Despite the increase in supply, record levels of convention activity helped push hotel occupancy rates in the Province to the highest in Atlantic Canada.
AN EMPHASIS ON QUALITY
The industry continues to benefit from ongoing efforts by those in the hospitality
trade to improve the quality of provincial accommodations. These efforts have resulted in
considerable growth in the availability of quality accommodations, as measured by the
Canada Select Accommodations Rating Program. This program awards a rating based on
established criteria and has been successful to the extent that local operators have
improved marketing and development efforts using this nationally recognized grading
system. 
As indicated in the accompanying chart, the number of facilities with a mid-star rating (2.5) or higher has increased considerably since 1993. To put this in the context of the tourism trade, facilities with 2 to 3 star ratings generally meet the bulk of accommodation demand across Canada.
Other trends aimed at improving service quality in the industry include the
establishment of hospitality service standards and the application of information
technology. For instance, professional certification in the Province is now available in
10 tourism occupations. Also, the recently developed Tourism Destination Management System
(TDMS) provides easy access for potential customers and a detailed database for consumer
research.
OUTLOOK
Newfoundland and Labrador’s unique tourism product, coupled with
the drive towards quality service and the awareness generated by Cabot 500, should
position this sector for growth and development in the years to come. International
tourism has been one of the strongest growth areas in the last decade and the industry is
well positioned to capitalize on this trend via the marketing potential of upcoming events
like the 1999 Canada Winter Games in Corner Brook, Soiree ’99 and Viking 2000.
Main Page Contents Previous Next