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January 5, 1998
(Tourism, Culture and Recreation)


New winter tourism industry for province unveiled

Newfoundland and Labrador received an economic boost today with the announcement of a new snowmobile industry for the province including a proposed multi-million dollar integrated snowmobile trail. Premier Brian Tobin, accompanied by Sandra Kelly, Minister of Tourism, Culture and Recreation, and Beaton Tulk, Minister of Development and Rural Renewal, briefed industry representatives today in Corner Brook.

"These trails are vital to our efforts to extend our province's tourism season and expand on our existing tourism infrastructure," Premier Tobin said. "The potential for positive economic impact and spin-offs from this project are astounding. The Canadian Council of Snowmobile Organizations (CCSO) reports snowmobiling-related dollars spent by Canadians is in excess of $2 billion annually, and the industry has experienced significant growth in Canada - five per cent yearly since the early 1990s. This infrastructure will position us to attract more of those dollars to Newfoundland and Labrador from national and international markets."

The first phase of this three-year project is for the development of trails in the western region of the province, from St. David's to St. Anthony and east to Clarenville. The required $5.8 million for the project will be used to purchase six groomers, to develop signage, and to hire labourers. Years two and three would see major trail development inter-connecting the rest of the province as well as four additional groomers.

"Newfoundland has huge potential in winter tourism and especially for snowmobile enthusiasts," Minister Kelly said. "We have the components of a high-quality product - lots of snow, a long season compared to other parts of Canada, wide open countryside, breathtaking scenery, abundance of wildlife, and a clean environment."

"This province needs to capitalize on the growing snowmobile industry," Minister Beaton Tulk said. "A well-designed, highly groomed, attractive and accurately signed, integrated trail system will be a welcome addition to the rural Newfoundland economy, especially those areas hit hard by the cod moratorium. These trails will diversify our tourism industry particularly in rural Newfoundland, and offer a new and exciting attraction to winter enthusiasts." Mr. Tulk commended various regional economic development boards for the "key roles they played in identifying these trails as strategic priorities for economic diversification."

"There is great potential for growth in this industry in our province," said Leyon Williams, president of the Newfoundland and Labrador Federation of Snowmobilers (NLFS). "Snowmobiling has long been a popular winter activity here. Our province has 10 per cent of the total registered snowmobiles in Canada, and 27 per cent of the population own one or more snowmobiles. The activity in snowmobiling in Newfoundland is mostly for recreational uses by residents. However, in recent years, there has been growth in the use of snowmobiles by non-residents for touring purposes. We now have the partners in place to build upon this trend and tap into new markets."

Total cost for the project is estimated at approximately $5.8 million. An agreement in principal has been reached with the federal government. It is anticipated that funding for the project will be provided through federal/provincial agreements administered federally by ACOA and HRDC. Employment impacts are estimated at 519 jobs throughout three phases of construction, and just over 700 direct/indirect jobs over the subsequent three years post-development.

Contact:

Heidi Bonnell, Premier's Office, (709) 729-3564
Leyon D. Williams, President, NLFS, (709) 635-3768

1998 01 05 5:00 p.m.

Government of Newfoundland and Labrador
BACKGROUNDER

New Winter Tourism Industry for the Province Unveiled

  • Since 1992, the Canadian Council of Snowmobile Organization (CCSO) and snowmobile dealers throughout Newfoundland have been trying to establish a provincial federation to organize snowmobilers and develop the snowmobile product in the province. In 1994, the Newfoundland and Labrador Federation of Snowmobilers (NLFS) was formed, and currently consists of 22 clubs and 2,000 members. By the end of this year, there will be 25 clubs representing 5,000 members in existence.

  • In 1995/96, the Department of Tourism, Culture and Recreation commissioned an in-depth study of how to develop the province into a competitive, international snowmobile destination. The resulting document, entitled the PLURAM Strategy, outlines in great detail how government, in conjunction with its major partners, should proceed as part of a logical, consistent development frame-work.

  • Since the Strategy was completed in May, 1996, the major emphasis has been on developing the organizational abilities of the provincial Federation and the local snowmobile clubs. As a consequence, nine of the clubs in the Western region developed and submitted proposals for funding under the Strategic Regional Diversification Agreement (SRDA) and to Human Resources Development (HRD) for major trail development and grooming equipment. It was not practical to deal with each of these proposals separately, so the provincial Department of Development and Rural Renewal spearheaded the formation of a Steering Committee of partner groups to develop a comprehensive trail development plan for the entire province.

  • In August, the Steering Committee, consisting of the five western region zone boards, DDRR, ACOA, HRD, TCR and the Snowmobile Federation, began preparation of a three-year plan to develop a major, continuous, groomed trail system from Port aux Basques to St. Anthony in the north and St. John's to the east.

  • The Steering Committee's Working Group had completed the master plan in mid-November, 1997. It engaged local snowmobile clubs on detailed trail indentification with the intent being to have a portion of groomed trail in place from St. David's to the St. Anthony area, and east to Gander, this winter. It is envisioned that six groomers be purchased and in place for this winter season. Years two and three would see major trail development inter-connecting the rest of the province as well as four additional groomers.

  • The initiative will cost $5.8 M over the course of the three year implementation of the project. The expectation is to have a multi-year funding arrangement in place this year.

  • Employment impacts are estimated at 519 jobs throughout three phases of construction, and just over 700 direct/indirect jobs over the subsequent three years post-development.

  • Rendez-Vous '98 is the inaugral snowmobile ride to mark the opening of the Trans-Canada snowmobile trail and is sponsored by the Canadian Council of Snowmobile Organizations (CCSO). This will take place from St. Anthony to Marble Mountain starting at 7:00 a.m. on January 2nd, 1998. It is designed to focus attention on snowmobiling at the grassroots level, as well as "promote national unity" through snowmobiling.

  • A calvacade of snowmobiles will travel from Newfoundland to British Columbia. It will commence on January 3rd at St. Anthony and terminate in British Columbia 45 days later. The Newfoundland and Labrador Federation of Snowmobilers (NLFS) is the provincial sponsor for the event. The Unity Ride will visit L'Anse aux Meadows on January 3rd, and will arrive at Marble Mountain on January 5th.

For more information contact:

Heidi Bonnell
Premier's Office
(709) 729-3564

Leyon D. Williams
President
NLFS
(709) 635-3768


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