In a volatile tourism market where visitors and major hotel chains were holding the line on personal and capital spending, Thunder Bay weathered the economic storm quite nicely.
Paul Pepe, the City of Thunder Bay’s tourism manager, said hotel and tourism operators witnessed increases in the 3- to 7-per-cent range in occupancies and visitation. The city has placed a heavy emphasis on meetings, conventions and sports tourism.
A changing economy led by mining and health sciences is a big driver.
Thunder Bay Tourism pursues conventions and trade shows in mining, health sciences, education, First Nations and government agencies.
Pepe said they also focus marketing activity on key industries that already have a local presence such as national companies with branch offices in the city. “That’s the most pragmatic approach in attracting events, companies with a reason to do business here.”
Pepe said about 30 to 35 event bids cross his desk every year, but he is not privy to every large event taking place. He estimates the number of events this year are up 7 to 10 per cent.
“We saw an increase in the number of corporate events but a decrease in the number of delegates per event. People sending less delegates, a function as a result of the economy.”
Overall, tourism has a $71-million economic impact on Thunder Bay, of which the corporate market is 12 to 15 per cent, by Pepe’s estimates. The strategy seems to work.
“We have days each year when we have soldout nights in Thunder Bay.”
Sometimes delegatesend up taking accommodations in Kakabecka Falls, west of Thunder Bay, or south to Grande Portage, Minnesota.
“It’s a good problem to have, but I think it illustrates just how healthy the market is here.”
Regional sports tourism has been a big boost and Thunder Bay is excited about hosting the World Junior Baseball Championship and the provincial Little League championship in July, followed by Winter Special Olympics in January 2011.
“And we’re aggressively going after more bids.”
Many hotels work collaboratively to bid on big events, partnering in other areas of city.
Fort William Historical Park has always been a popular event destination. Through a capital improvement program, they’ve upgraded and modernized the facility with Wi-Fi and roll-down screens to host meetings.
The property offers a unique meeting place that always impresses guests, says Pepe.
“I’ve toured new facilities a few months ago and these upgrades really allow them to handle a lot more diversity in terms of what meeting planners are looking for.”
They’ve added a new canteen and a catering partner in the Victoria Inn.
Pepe said there’s been capital improvements to freshen up and redecorate rooms and meeting spaces at a number of hotel properties over the past year at the three major hotels in the city: the Valhalla, Victoria Inn and Best Western Nor'Wester.
“That’s a very positive sign during last year’s global hotel capacity slowdown.”
A recent addition is a 19-room expansion at the Days Inn North. The property is only a couple of years old but what makes it unique is its link to the hospital network of the adjacent Thunder Bay Regional Health Sciences Centre.
Doctors and travelling specialists can plug in to view diagnostic imagery from their hotel room, and that’s a big selling point for them as a new property, said Pepe.
A great deal of community buzz, both positive and some negative, surrounds the waterfront revitalization project in the city’s north end. Prince Arthur’s Landing at Marina Park would be open to the public until late 2011. On the site will be a 120-room boutique-style hotel capable of hosting small meetings.
Pepe said the site, which offers an obstructed view of the Sleeping Giant, has attracted broad interest from internationally recognized brands and will be outfitted to host small meetings. The only waterfront hotel property is the nearby Prince Arthur.
By having another hotel property in this area with the waterfront as a drawing card, both properties may capitalize.
“Nobody’s looking at this as trying to take any business away, it’s about growing the pie,” said Pepe.
A big prize for the meetings and conventions business may be a few years down the road. The City of Thunder Bay is trotting out a new plan for a multi-purpose events centre.
A first round of public meetings were held this past spring. The city wants to sample taxpayers’ appetite for the proposal by asking the basic questions of where it should go, its size and what amenities are required.
Pepe said from his viewpoint, the Thunder Bay market can support a 5,000- to 6,000-seat arena, with floor space to host a convention of between 800 and 1,000.
He said it would have to be bigger than Sault Ste. Marie’s Essar Centre and would need multiple playing surfaces where two or three events can be happening at once.
“We need a building that can shift gears from doing a hockey tournament one night to a trade show the next wth multiple revenue streams.”
Pepe said a state-of-the-art building would position Thunder Bay to bid on national events like the Brier which has criteria for minimal seating capacity.
The city needs a replacement for the 49-year-old Fort William Gardens which has a seating capacity of 3,600.
“That’s going to be a game changer if comes to fruition” in terms of attracting corporate and sporting events, said Pepe.
An economic impact study by Deloitte & Touche LLP said the Multiplex would deliver positive spinoffs for sport tourism, the arts community, local hospitality and retail businesses. In doing studies on 10 comparable facilities for the Thunder Bay market, the consultants said constructing such a building would require a $60-million investment.
