August 19, 1998
(Executive Council)

120 room resort planned for Deer Lake area

A new $10 million resort planned for Deer Lake underscores international business confidence in the tourism future of Newfoundland and Labrador, Premier Brian Tobin said today.

The premier made the comment at a news conference in Deer Lake where Chimo Hotels of Canada announced plans for a 120-room resort to be built in the town. Construction is anticipated to start later this year, and be completed by the year 2000.

"Today's announcement by Chimo Hotels of Canada is very significant, not only for Deer Lake, but also for the province as a whole," the premier said, noting the $10 million venture will be funded entirely by the private sector. "This kind of interest and financial commitment speaks volumes of the increasing perception of Newfoundland and Labrador as a world-class travel destination."

"The cultural and recreational opportunities available within Newfoundland and Labrador have significant international appeal," said Hans Gerhardt, president of Chimo Hotels of Canada. "We plan to have an aggressive marketing strategy to promote this new resort, especially its year-round potential."

Mr. Gerhardt noted that the Deer Lake area is attractive because of its setting, and its proximity to airline connections. He added that the 120-room Deer Lake resort will draw upon the full extent of a western Newfoundland tourism experience, especially winter pursuits of cross-country and downhill skiing, or snowmobiling. Stay West Inc., the development arm of Chimo Hotels, will be the company's on-site representative for the project.

"The resonance of this announcement goes well beyond jobs that will be created during the construction process, or the permanent jobs and spin-offs that will result from this quality resort in the Deer Lake area," Premier Tobin said. "Chimo Hotels is a major international company that is not only seeing, but also sharing in the vision of the `new' Newfoundland and Labrador, and tourism is a big part of that vision."

"This private sector initiative is a testament to the degree of confidence that exists in the global business community towards Newfoundland and Labrador," the premier said. "Chimo Hotels is a company with leading resort ventures in Jamaica, the Bahamas, Ontario and Quebec, and they recognize the true tourism business potential of the province of Newfoundland and Labrador."

Contact: Heidi Bonnell, Director of Communications, Premier's Office, (709) 729-3564.

1998 09 19                              6:50 p.m.