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The following statement was issued today by Beaton Tulk, Minister of Development and Rural Renewal. It was also read in the House of Assembly:

Provincial government to support development of a new winter tourism destination product -
a groomed snowmobile trail system

The Department of Development and Rural Renewal and the Department of Tourism, Culture and Recreation are working together to explore strategic opportunities which have potential to benefit the economy of Newfoundland and Labrador.

Today, the Minister of Tourism, Recreation and Culture, and I are pleased to inform all Members of the House of Assembly of a very significant new initiative being taken to strengthen our winter tourism industry and to diversify our rural economy.

The provincial government is pursuing the construction of a quality, high-yield winter tourism product - a groomed snowmobile trail system in the province.

Around the world our land is recognized for its fantastic beauty and recreational potential. Development of a winter trail system will be very beneficial for our people in two ways - recreationally and economically.

An indication of the tremendous economic potential for snowmobile activity here in Newfoundland and Labrador, is that about two billion dollars are spent annually by Canadian snowmobilers. Economic spinoffs in Ontario alone are $550 million a year. That province along with Quebec and our fellow Atlantic Province, New Brunswick - have demonstrated a return to their economies on money invested by governments, a ratio of 20 to 1.

Snowmobile industry experts also tell us that Newfoundland and Labrador is potentially the most attractive snowmobiling destination in North America and around the world. We have great competitive advantages in terms of length of season, terrain and snow conditions.

We can become a major international snowmobile tourism destination area.

A highly developed world-class trail system in our province, supported by an aggressive marketing campaign, will mean new business opportunities and new jobs for our people.

At present our tourism efforts are focused largely on the summer season. But a first class winter trail system will strengthen the economy of many rural communities. New winter products will make the overall tourism sector more diversified and more viable.

A top notch snowmobile trail system in our province will result in millions of new dollars being injected into our economy.

It was in meetings with the Cabinet Committee on Rural Revitalization, that several Regional Economic Development Boards clearly identified the economic benefits for a winter trail system in this province.

This government will be seeking a partnership with - the federal government, Regional Economic Development Boards, community groups, local snowmobile clubs, and the Newfoundland and Labrador Snowmobile Federation, as well as other stakeholders - to make our province one of the premiere snowmobile destinations in North America and the world.

I emphasize that this is a new and exciting opportunity for economic development and tourism in rural Newfoundland and Labrador - employment for hundreds of our people and millions of dollars in new revenues.