Newell Region TOURISM OPERATOR BUSINESS PLANS - Brooks Region
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Newell Region TOURISM OPERATOR BUSINESS PLANS
Newell
Introduction
TOURISM OPERATOR
BUSINESS PLANS
Annually, approximately 100,000 tourists visit
Dinosaur Provincial Park, which is located
within the County of Newell and is a UNESCO
World Heritage Site. Tourists come to camp
and experience the naturally occurring beauty,
but there is a lack of other tourist destinations
and tourism opportunities to expand or
enhance their experience.
The County is also home to Lake Newell, a large
man-made reservoir located 14 kilometres
south of the City of Brooks. Travel Alberta refers
to the lake as “one of Alberta’s best kept secrets
- Southern Alberta’s largest and warmest lake.
Perfect for canoing, sailing, fishing, swimming,
etc.”
To best leverage the region’s tourism assets
and recognizing the need for more adventure
tourism opportunities, the Newell Region
embarked on something new; the creation of
business plans for tourism operators. These
plans create opportunities for investors and
entrepreneurs to capitalize on existing, popular
tourist destinations.
Outcomes for the project included;
1. Increasing support for entrepreneurs;
2. Improving the local business
environment;
3. Enhancing support for industries that
provide job diversification to our region;
4. Increasing the ability to attract visitors,
which aids in the promotion of rural
Alberta;
5. Job creation; and,
6. Enhancing collaborative inter-
relationships in the Newell Region.
This project was made possible through the
province of Alberta’s Community and Regional
Economic Support grant program.
Please see the key contact page for further
information in terms of pursuing and
developing these business plans.
2 / N ew el l R e g io n
l Region Table of Contents
2 INTRODUCTION
4 BUSINESS CASE OVERVIEW
6 WATER SPORT RENTALS
9 COMFORT CAMPING
13 NORDIC SPA
16 CAMPGROUNDS
18 FISHING & CAMPING TOURS
20 TRANSPORTATION SHUTTLE & AGRICULTURE TOURS
22 ARCHERY TAG
24 ESCAPE ROOM
26 ADVENTURE TOURS
29 KEY CONTACTS
**Disclaimer: Information in this document, including financial
information, should not be considered as advice or a recommendation. Before
acting on any information, please seek independent financial advice.
Ne w e l l Reg io n / 3
Business Cases
The opportunity exists on both Lake Newell
and Red Deer River for rentals of water sport
equipment. The development of water sport
WATER SPORT RENTALS rentals at these two locations would extend
the range of outdoor adventure tourism
opportunities available in the area. PG. 6
The opportunity exists for the creation of
comfort camping facilities on the privately
owned land surrounding Dinosaur Provincial
COMFORT CAMPING Park. The development of comfort camping
facilities would significantly increase luxury
camping capacity in the region to meet
increasing demand. PG. 9
There is an opportunity to build a Nordic Spa
on the land surrounding Lake Newell. The
NORDIC SPA development near Lake Newell Resort would
be the largest spa in Southern Alberta and the
only Nordic Spa in the province. PG. 13
N
Building additional campgrounds is a tourism
business opportunity available to the private
landowners surrounding Dinosaur Provincial
CAMPGROUNDS Park. Over 100,000 tourists visit the Park
each year, placing significant strain on the
campground accommodations within the
Park itself. PG. 16
The rise of glamping and guided excursions,
alongside the rise of self-developed expertise
and the extension of local knowledge networks
FISHING & CAMPING TOURS via the internet, combine to create an interesting
opportunity for the region. PG. 18
4 / N ew el l R e g io n
There is an opportunity to develop tourism around
the pre-existing agricultural infrastructure and
TRANSPORTATION SHUTTLE & cultural heritage of the region. Many agricultural
regions have branded themselves based on their
AGRICULTURE TOURS produce and there is the chance to create a circuit
or network of businesses and groups that tie into
the cultural history of agriculture in the County of
Newell. PG. 20
Combat archery games have existed alongside
paint ball and lasertag for many years, but it has
recently exploded in popularity. This is partially
ARCHERY TAG due to the rise of franchises with bow-and-arrow
wielding characters, such as Game of Thrones, The
Hunger Games and Lord of the Rings. 2011 saw
John Jackson invent a formalized version called
“Archery Tag”. He has now licensed his concepts
and gear to more than 170 locations. PG. 22
There is an opportunity for the region to
participate in a rapidly growing trend which is an
indoor, four-season attraction. “Escape Rooms”
originated in Asia in the early 2010s, naturally
ESCAPE ROOM evolving from exploration-themed video games.
There is a following for escape rooms, known as
“Escape Room Enthusiasts”. PG. 24
There is an opportunity to develop a network
of “adventure touring activities” on off-road
private land and public roads in the County
ADVENTURE TOURS of Newell. These tours would involve renting
a vehicle or animal for guided or self-guided
day-tours. PG. 26
Newell Region O K I N
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Ne w e l l Reg io n / 5
Water sport Rentals
The opportunity exists on both Lake Newell National Park to the South Saskatchewan and kayak rentals. Both locations could also
and Red Deer River for rentals of water sport River. A stretch of the river located in the potentially offer guided tours or a skipper.
equipment. The development of water sport County of Newell is ideal for paddling and
rentals at these two locations would extend
the range of outdoor adventure tourism
runs from Steveville to Dinosaur Provincial
Park. Currently, there are no boat rentals
Business Description
Water sport rentals on Lake Newell and the
opportunities available in the area. available along this stretch of the river.
Red Deer River would take place seasonally
between May and October, weather permitting.
Lake Newell is the largest and warmest man It is envisioned that the water sport rentals
made lake in Alberta and one of the fastest would offer a broad range of water activities It is anticipated both locations will have a
lakes for sailing and windsurfing. Visitors to between the two locations for both local variety of paddle rentals, including: single
Lake Newell currently boat, swim, sail, fish, residents and visitors. The Lake Newell rental kayak rentals, double kayak rentals, and canoe
camp, hike and bird watch using their own location would offer canoes and kayaks, as rentals. Potential business owners can limit
equipment. well as potential opportunities for power expenses by purchasing used equipment.
vessel and other water sport rentals. The
Red Deer River runs 724 km from Banff Red Deer River location would feature canoe Based on a competitive analysis, it is suggested
6 / N ew el l R e g io n
the single sit-in kayak rentals be Pelican Quest
100, Dagger, Old Town, or Wilderness Systems.
Site available and a beach along a bend of the
Red Deer River. Picnic tables and pit toilets are
Lake Newell is 16 km long and 6.5 km wide,
The suggested double (tandem) kayak is the available, though there is no access to utilities.
with a surface area of 67 sq km. The lake has
Perception Cove, while the Coleman 15.5 Following the river, it is 13 km from Steveville to
a total shoreline of approximately 70 km with
Ram-X and Old Town Saranac 160 canoes are the Dinosaur Provincial Park campground. This
a maximum depth of just under 20 m. The lake
suitable for the water sport rentals. can take 2.5 to 4 hours to paddle, depending
is deep, fast, and warm, which allows for many
types of wind craft to be used and also allows on the water level and time of year. The river is
It is estimated the Lake Newell location will generally fast flowing and the current is strong.
for sailing earlier in the spring.
have ten single kayaks, five double kayaks, While in Dinosaur Provincial Park, camping is
and five canoes for rent. The Red Deer River only allowed at the designated campground.
Lake Newell is located immediately adjacent
location will have four single kayaks, two The land surrounding the park is private and
to Kinbrook Island Provincial Park. The
double kayaks, and one canoe for rent. paddlers require the landowner’s permission
lake is also located 12 km south of Brooks,
approximately 10 minutes on Secondary to access these areas. The boat launch in the
A boat shed can be built near the boat day use area of the park is recommended for
Highway 873. Dinosaur Provincial Park is a
launches of both locations to store the rental hand launch only. Boat trailers and vehicles
45-minute drive to the northeast. Lake Newell
equipment. Alternatively, the Red Deer River may get stuck in the river sediment and silt.
is within a 2 hour drive to any major Southern
location can be serviced from the boat shed Alberta urban centre.
on Lake Newell or elsewhere by delivering Both the Lake Newell and Red Deer River
equipment on an as needed basis. The Red locations are on land that is designated for
A boat launch, hand boat launch, and sailboat
Deer River location will likely need a shuttle provincial parks and campgrounds. Contact
launch offer a number of options for water
service as paddlers will be starting and ending your local government to determine zoning
sport activities on the lake. Power vessels are
their journey at different locations on the and permitting requirements. Further
subject to a 12 km/h speed limit in the posted
water. investigations and consultations with Alberta
swimming area. A seasonal convenience store
offering snacks is currently available on site, as Parks and the Eastern Irrigation District may be
Rentals can be conducted out of the sheds and well as a fish cleaning stand. required.
online. Paddles, personal flotation devices,
and all required safety equipment should be The closest upstream access to the Red Deer The following checklist should be used when
included with rentals. River from Dinosaur Provincial Park is located determining site eligibility:
at the Steveville Campground, approximately a
In addition, the Lake Newell location has 20 minute drive. It is located immediately after • Check zoning
the potential to support sailboat, water ski, the small Steveville Bridge off Highway 876, on • Ensure proper permits are in place
jet ski, paddle boat, fishing, and motorboat the west edge of the park. • Confirm businesses can operate within
rentals. These further water sport activities
can be considerable revenue generators provincial parks
With the exception of the first 100 m, the roads • Check environmental regulations and
and can serve as significant visitor attractors within the campground include large potholes species protection
to the region. Adding these services can be that may cause accessibility problems for • Determine legal and insurance
considered Phase 2 of this development, some vehicles. There are up to 15 campsites requirements
based on market demand.
Ne w e l l Reg io n / 7
Market Attraction at the Red Deer River location for the same
period. It should be noted that staff wages
for a full day rental.
The Lake Newell rental location will be the
comprise the majority of expenses. Profit Revenue is targeted at $750/day at the Lake
higher traffic location and will attract both
margins would significantly increase should Newell location and $375/day at the Red Deer
local customers and tourists alike. A number
the businesses be self-staffed or a family River location, based on a competitive analysis
of locals already use the lake year-round,
business. of prices for similar water sport rentals in
providing a steady revenue stream for potential
business owners. Much of the local market may the region. This is the average daily targeted
Single kayaks are estimated to be $35 for a half revenue, as receipts are likely to be higher
already own water sport equipment, but may
day and $50 for a full day rental. Double kayaks during the May-August period and decline
be interested in rentals for convenience or the
and canoes will be $60 for a half day and $80 from September-October.
diverse experiences offered on the water.
Tourists to the Lake Newell location are likely LAKE NEWELL 5 YEAR FINANCIAL PROJECTIONS
to be visitors to Kinbrook Island Provincial Park
or from the surrounding regions in Alberta,
Saskatchewan, and the United States. This
group is likely to be attracted by the natural
beauty of the area, an outdoor lifestyle, and
the landscape. The tourism market for water $25k $324k $675k $326k
sport rentals on Lake Newell will be recreation
tourists, whose demographics may include
families, millennials, and couples.
The market for paddling on the Red Deer Estimated Net
Estimated Estimated
River will more likely be tourists attracted to Operating Operating
Dinosaur Provincial Park. These visitors may Capital Costs Revenue
Expenses Income
be attracted to the natural landscape of the
Alberta Badlands, but may also be education
or attraction tourists interested in paleontology
or dinosaur fossils. This market’s demand for
paddling may therefore be driven by demand RED DEER RIVER 5 YEAR FINANCIAL PROJECTIONS
for alternative activities in addition to the
primary purpose of the visit to the region.
The majority of tourists will be from the
surrounding regions or Canada more broadly.
Visitors to the Red Deer River location will also $15k $162k $338k $161k
be more likely than those visiting Lake Newell
to be from other regions of the world. They may
have less experience on the water and will be
looking to disembark at Dinosaur Provincial
Estimated Net
Park. Their demographics may include families, Estimated Estimated
millennials, and couples. Operating Operating
Capital Costs Revenue
Expenses Income
Newell
Financial Information
The initial capital investment requirements
are $25k for the Lake Newell location and $15k
for the Red Deer River location. This includes
boating equipment, a boat shed, and safety
equipment. Single kayaks are estimated to be
$500 each, while double kayaks and canoes
are $1,000 each. A boat shed is estimated to
cost $5,000, while another $5,000 is allocated
toward boating equipment, safety equipment,
and maintenance for each location.
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8 / N ew el l R e g io n
Comfort Camping
The opportunity exists for the creation of premises. Three premium units are riverfront completely booked months in advance. There
comfort camping facilities on the privately- with a spacious floorplan. Four standard units is little capacity to build additional comfort
owned land surrounding Dinosaur Provincial have park views and a standard floorplan. All camping units in the park. It is anticipated
Park. The development of comfort camping units can accommodate up to four people. that developing additional comfort camping
facilities would significantly increase luxury facilities on the privately-owned land
camping capacity in the region to meet Current comfort camping facilities include: surrounding the park will help the region
increasing demand. handmade furnishings; one queen-sized meet the unmet demand for luxury camping
bed, one pull-out futon, pillow, and bedding; facilities.
Dinosaur Provincial Park is a UNESCO World cooking implements, utensils, a fridge,
Heritage Site located about 2.5 hours east of and kitchen table; a private deck with deck Business Description
Calgary and 30 minutes northeast of Brooks. furniture; a BBQ, fire pit, and picnic table; and Comfort camping describes a style of camping
The park is home to the highest concentration electricity. Comfort campers also have access with amenities and, in some cases, hotel-
of Cretaceous fossils in the world. To date, to shared potable water, firewood, flush toilets, style services not associated with traditional
dozens of dinosaur species have been coin-operated showers, and laundry facilities. camping. Comfort camping has become
unearthed and more than 300 specimens increasingly popular amongst tourists seeking
grace museums around the world. Due to the large number of visitors to the luxuries of hotel accommodation alongside
Dinosaur Provincial Park and the quality of the escapism and adventure recreation
Dinosaur Provincial Park already provides the amenities, the comfort camping facilities of camping. The appeal is sustainable,
seven comfort camping units within the park within the park are in high demand and often quasi-outdoor lodging that offers travelers
l Region
Ne w e l l Reg io n / 9
comfortable experiences in nature. made of wood, with insulation installed inside
the walls, a minimum of a soft floor covering or
Comfort camping will take place seasonally carpet, and often a double-glazed window and
between May and October on the privately- lockable French doors to reduce condensation
owned land surrounding Dinosaur Provincial and provide sound insulation.
Park, weather permitting. This seasonal
availability mirrors the comfort camping The business owner may also wish to use a
season within the park. combination of these three types of comfort
camping accommodations to provide
The likely comfort camping business model options for potential tourists. This may be
will be B&B style; where the landowner is also implemented in phases; where two canvas
the proprietor, who builds a small number of wall tents are available during the first phase to
comfort camping units on their land to provide enhance the supply of these accommodations
additional income. in the area, and yurts and pods are erected in
the second phase to provide alternatives to the
An alternative business model would involve accommodations offered in the park.
a business owner leasing or buying a parcel of
private land for the operation of the comfort In terms of amenities, the business should
camping facilities. provide similar offerings as found in the park
to remain competitive. This would include:
The business owner has three options to bedding amenities, cooking and kitchen
develop comfort camping accommodations: amenities, an outdoor seating area, BBQ, fire
canvas wall tents, yurts, and pods. Canvas wall pit, firewood, electricity, and potable water.
tents are the same type of comfort camping
accommodation used in Dinosaur Provincial Access to flush toilets, showers, and laundry
Park. Apart from the canvas exterior, these facilities may also be provided in the business
tents are usually placed on wood flooring, are owner’s home. This may not be an option
well-ventilated, and are often placed under a if the business model involves the business
more permanent wooden gazebo to protect owner leasing or purchasing land for comfort
the tent from the elements. camping operations. Alternatively, an
outhouse, portable toilet, or portable shower
Camping yurts are a modernized version of may be provided. However, this may limit the
the circular shaped abode used as portable appeal of the comfort camping business to
homes by nomadic people. These modernized luxury tourists.
versions are warmer than a tent and have
insulated walls and roofs. In the summer, the Luxury hotel amenities may also be provided
yurts are kept cool with windows, dome, and for a fee, such as room service meals, bar
door openings that provide cross ventilation. service, horse riding, and guided tours.
Yurts come in three different sizes; sleeping
four, six, or eight people. Site
Badlands are dramatic landforms that develop
Pods are semi-permanent, hard-walled, and an intricate network of deeply incised, narrow,
pre-fabricated comfort camping structures. The scattered locations throughout the prairies
winding gullies and fantastically shaped
exterior of these structures is most commonly of Western Canada, where they stand in stark
hoodoo rocks. Areas of badlands occur at
contrast to the gently rolling landscape of the
plains. Badlands are particularly prevalent
along the river valleys of southern Alberta,
especially along the Red Deer River, where they
flank the river for 300 km and culminate in their
most impressive display at Dinosaur Provincial
Park.
While the badlands within Dinosaur Provincial
Park are managed by Alberta Parks, a number
of privately owned plots of land surrounding
the park also include badlands on the property.
These plots are particularly concentrated to the
area southwest of Steveville, on the western
bank of the Red Deer River.
Driving from Steveville to Dinosaur Provincial
1 0 / Ne w e ll R e g io n?
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Park is approximately 30 minutes. The close owner’s home. Proximity to the owner’s home face similar site requirements at landowners
proximity to the park allows tourists staying will also allow for the easy provision of visitor developing the campsite far from their homes.
in comfort camping accommodations on services and amenities.
privately-owned land access to Dinosaur As the badlands are a protected area, business
Provincial Park with a relatively short commute. Those landowners that wish to develop the owners will have to ensure that tourists comply
campsite far from their homes will likely need with all applicable regulations on site. These
Most private land owners in this area also reside to provide a power generator for the comfort include regulations related to fishing on the
on their property. This provides two options for camping accommodations. If a dirt road is not Red Deer River, hunting, protected species,
those land owners wishing to pursue comfort already connecting the home to the campsite, open fires, and fossil preservation.
camping business opportunities: develop the then a gravel road may be developed.
campsite close to their home or develop the Alternatively, visitors with smaller vehicles may A number of agricultural plots of land also
campsite on a far corner of their property. have to park at the owner’s home, where the exist around the hamlet of Patricia, which is
owner will provide a shuttle to the campsite. approximately a 15 minute drive to Dinosaur
Those landowners that wish to develop Connecting the campsite to the electrical grid Provincial Park. The owners of these plots may
the campsite close to their homes can may be cost-prohibitive in this scenario. also be interested in pursuing the development
easily connect the comfort camping of comfort camping on their property.
accommodations to the electricity grid. Roads Business owners pursuing a business model
would likely not have to be built, assuming that involves leasing or buying private land The land surrounding Dinosaur Provincial
vehicles already have easy access to the for comfort camping operations will likely Park has been designated for residential
Ne w e l l Reg io n / 1 1use for private landowners. Contact your comfort camping facilities therefore have as $2,500 for gasoline and firewood each year.
local government to determine zoning an opportunity to compete directly with
and permitting requirements. Further Dinosaur Provincial Park to attract this tourist After a competitive analysis of other comfort
investigations and consultations with Alberta demographic. Providing higher quality or camping units within Alberta Parks, the price
Parks and private landowners may be required. more amenities than are provided at the point for canvas wall tents should be $130/
comfort camping facilities in the park can night. The yurt should be priced at $150/night
The following checklist should be used when make privately-owned comfort camping and the pod at $170/night. It is projected the
determining site eligibility: accommodations the location of choice for occupancy rate will be 80% for the six months
these tourists. This group may also prefer the the comfort camping facilities will be available
• Check zoning relative quiet of privately-owned campsites to between May and October.
• Ensure proper permits are in place the crowded park facilities.
• Confirm business can operate on the If the business owner pursues a business
designated land model that involves leasing or purchasing land
• Check environmental regulations and Financial Information for the comfort camping operations, then a
species protection Two options are provided for the development staff member may be required. It is estimated
• Determine legal and insurance of comfort camping on the privately-owned that $64,800 will be needed annually for these
requirements land surrounding Dinosaur Provincial Park. staffing requirements, where one employee
The first option assumes two canvas wall tents will be needed 24 hours/day for six months at
are used for the entire five-year assessment a salary of $15/hour.
Market Attraction period. The second option assumes that two
Dinosaur Provincial Park is a high traffic tourist canvas wall tents are used for the first two If a gravel road is required, then costs can
destination, attracting over 100,000 visitors years of operation, where a yurt and a pod are range from $2,000 to $60,000, depending on
a year. There is therefore a large market for added to this inventory in year three for the the distance, curves, and terrain. Additional
additional comfort camping accommodations remainder of the assessment period. revenue may also be derived from value-
on privately-owned land around the park. added luxury services, such as room service
This market is diverse and comprised of: Canvas wall tents are estimated to cost $1,500 and laundry.
international tourists from Asia, Europe, and each. A yurt is estimated to cost $4,000 and
the United States; Canadian tourists from other a pod is $10,000. An additional $5,000 is The cost of buying or leasing the land, a staff
provinces; and local tourists from Alberta. allocated for each accommodation’s furniture, member, a road, and the potential revenue
bedding amenities, kitchen amenities, BBQ, from these added services are not included
These visitors may be attracted to the natural and picnic table. A generator is estimated to in the financial projections due to the specific
landscape of the Alberta Badlands, but may cost $2,500 per comfort camping unit, as well context of this business opportunity.
also be education or attraction tourists
interested in paleontology, research, or
dinosaur fossils. Visitors to Dinosaur Provincial COMFORT CAMPING 5 YEAR FINANCIAL PROJECTIONS
Park also have a range of household incomes.
The prime target market for business owners
developing comfort camping on their $18k $7.5k $93.6k $68.1k
privately-owned land will be overflow comfort
campers from Dinosaur Provincial Park. The
seven comfort camping units within the park
are often full, forcing park staff to turn away
Estimated Net
campers. Developing additional comfort Estimated Estimated
camping facilities on privately-owned land Operating Operating
Capital Costs Revenue
nearby will provide an attractive alternative to Expenses Income
traditional campsites or the closest hotels in
Brooks.
Visitors seeking comfort camping COMFORT CAMPING 5 YEAR FINANCIAL PROJECTIONS
accommodations are more likely to be
international tourists, tourists from other
Canadian provinces, high income tourists, and
a luxury demographic. International tourists
and tourists arriving from distant Canadian $32k $65k $324k $227k
provinces are less likely to be traveling with
their own camping equipment.
High income and luxury tourists are more Estimated Net
Estimated Estimated
likely to be seeking the adventure tourism of Operating Operating
camping combined with modern luxuries and Capital Costs Revenue
Expenses Income
amenities. Private business owners operating
1 2 / Ne w e ll R e g io nNordic Spa
There is an opportunity to build a Nordic spa Provincial Park the natural features of the or steam rooms with refreshing cold-water
on the land surrounding Lake Newell. The surrounding areas. plunges and relaxation sessions. The thermal
development near Lake Newell Resort would cycle is a heat therapy treatment that involves
be the largest spa in Southern Alberta and the It is envisioned that the Nordic spa would offer alternating between hot and cold, followed by
only Nordic spa in the province. a range of spa activities year-round. These a rest period. This relaxation ritual is based on
would include spa treatments, massages, a 2000-year-old tradition founded in Nordic
Lake Newell Resort is located on the shores baths, pools, and saunas. This relaxation and countries. After completing three or four times,
of Lake Newell, southern Alberta’s largest healing centre would mainly be focused on the process is designed to cleanse skin, improve
and warmest lake. Only ten minutes to the heat therapy, hydrotherapy, and relaxation physical condition and provide a sense of well-
city of Brooks, all amenities are available, techniques from Scandinavian countries. It being.
including shopping, schools, churches, would offer a multi-sensory experience in a
banking institutions, and health care. Lake surrounding natural setting and is aimed at The first thermal therapy stage is to increase the
Newell Resort is a short drive from several golf contributing to the health and wellness of its body’s temperature. During this thermal cycle
courses, including the Brooks Golf Course & guests. step, skin pores open, the body stores heat,
Meadowlark Par 3. and toxins are expelled. Sweating cleanses the
body from the inside out by eliminating the
This area provides a picturesque setting in Business Description toxins that have built up over time. These toxins
which to locate a Nordic spa. Visitors could The main feature of the resort is the bath impede proper functioning, which may be a
expect to enjoy a view of the lake, bird process whereby customers alternate body factor in ageing. This step most often involves
watching, and the beauty of Kinbrook Island warming in the hot baths, Finnish sauna a Finnish dry sauna, but can also include a
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Ne w e l l Reg io n / 1 3Eucalyptus steam bath, hot baths, or a thermal tonic, Thai, hot stone, lymphatic drainage, Newell Reservoir, approximately 5.0 km south
waterfall. and prenatal. Couples massages may also of Brooks and 3.2 km west of Highway 873. It is
be provided, as well as massages performed accessed from Highway 873 via Township Road
To respect the steps of the thermal cycle and outdoors in nature. 182 to Lake Newell Resort Road.
to draw maximum benefit, it is essential to cool
the body after the intense heat of the sauna. The body treatments offered may include: Lake Newell Resort is comprised of five estates:
The second step causes the pores of the skin facial care, anti-aging and nourishing Blue Heron, White Pelican, Kingfisher Estates,
to close, with a brief but highly beneficial cool body treatments, vivifying treatments for Kingfisher Bay, and Sandpiper Estates. Most
rinse in Lake Newell, icy Nordic waterfalls, cold revitalization and detoxification, beating of the parcels of land have been purchased by
plunge pools, or cool showers. treatments with birch branches, and foot care. residential owners, with a number of homes
already built.
From 10 to 15 seconds is enough to cool the A restaurant, bar, spa boutique, and
body. If possible, submerging the head under accommodations may also be available at the A number of contiguous parcels of land
water provides a more complete experience. Nordic spa. in Kingfisher Estates present a potential
A walk in the cold air can also be enough for location for a Nordic spa. Though these lots
are currently owned by Deloitte Restructuring
a gentle experience. The transition from hot
to cold produces a thermal shock, which will
Site Incorporated, they may be individually sold to
The average Nordic spa requires approximately different buyers. Therefore, the development
close skin pores and release adrenaline, a 30,000-40,000 sq. ft. of space. In general, this
hormone that stimulates the body. of a Nordic spa in this location may require
includes nine baths (hot, cold, and temperate), negotiations with multiple landowners.
nine saunas, an infinity pool, several outdoor
The third and final step of the thermal cycle relaxation pavilions, one outdoor massage
is critical: 20 minutes of relaxation. It can Several plots in and around Lake Newell Resort
area, and a main complex that includes a yoga are municipally owned as well. In addition,
be fulfilled in a variety of ways: in a hot tub, and meditation room, restaurant and bar, much of the land surrounding the Lake Newell
relaxation pavilion around a fire, hammock, indoor massage areas, a boutique, terraces, Reservoir is owned by the K300 Financial
solarium, terrace, or zero-gravity saltwater pool. and a parking lot. Corporation. This land may be a potential
The final stage in the cycle is recommended to
target for acquisition by a developer seeking to
rest the body and heart rate. The likeliest location for the Nordic spa is the build a Nordic spa.
northernmost tip of Lake Newell, near the Lake
The spa should also provide massages and Newell Resort. Lake Newell Resort is a hamlet Map 1 also indicates that very large tracts of
body treatments for an additional fee to offer in southern Alberta, Canada within the County land in the surrounding area is owned by the
the full wellness experience. Massage options of Newell that was established in 2007. The Eastern Irrigation District (EID), which operates
may include: Swedish, Californian, deep tissue, hamlet is located on northern shore of the Lake under the authority of the Alberta Irrigation
Districts Act. The development of a Nordic
spa on Lake Newell would likely have to be
approved by the EID, no matter the landowner.
EID’s primary business is the management
of an extensive water distribution network in
support of irrigated agriculture. In addition
to conveying water to approximately 300,000
acres of irrigated farmland owned by private
families and corporations, the EID also conveys
water through their distribution network to
benefit municipal, industrial, wildlife habitat
and recreational purposes.
EID has indicated that it is open to the
development of a Nordic spa if the developer
can demonstrate that the facility will not
interfere with the operation, quality, and safety
of the irrigation system.
Electricity, water, and roads are readily
available in the area due to the development
of Lake Newell Resort over the past decade.
Municipal and privately-owned plots of
land within the boundaries of the resort will
already be connected to this infrastructure.
Developing EID or K300 Financial Corporation
Map 1: Lake Newell Resort land may require utility connection and road
1 4 / Ne w e ll R e g io nconstruction. However, these will likely be the age of 18 are typically not allowed on For the purposes of this financial assessment,
straightforward and economical considering the premises, significantly limiting the family an average of $8M will be used for the initial
the proximity to a developed area in Lake demographic. development phase. It is assumed a second
Newell Resort. phase of development may significantly
Clients tend to be single adults and married expand the facility after five years of operation,
The land surrounding Lake Newell Resort and unmarried couples. A large section of the depending on market demand.
has been designated for residential use for market attend Nordic spas on date nights.
private landowners or has been designated for Many Nordic spa businesses also offer couples This initial investment includes all bath, sauna,
packages in partnership with local golf courses, body treatment, relaxation area, boutique,
irrigation use. Contact your local government
where one member will spend the day at the and restaurant and bar facilities. A zero-gravity
to determine zoning and permitting
Nordic spa while the other enjoys a day at the saltwater pool and accommodations are not
requirements. Further investigations and golf course.
consultations with Lake Newell Resort included in this initiative investment.
Developers Ltd., private landowners, and the Lake Newell Resort is centrally located between
Eastern Irrigation District may be required. The operations of the Nordic spa will require
the large municipalities of Calgary, Medicine
Hat, and Lethbridge. This location would approximately 30 staff members. These
The following checklist should be used when provide the Nordic spa with an immediate include: a General Manager, a Restaurant and
determining site eligibility: market of 1.4 million people within a two-hour Bar Manager, three Restaurant and Bar Servers,
drive. In addition, the spa would also enjoy a a Boutique Manager, a Boutique Customer
• Check zoning group of core clients that are local residents of Service Representative, four Massage
• Ensure proper permits are in place Lake Newell Resort. Therapists, four Estheticians, ten Pool Staff,
• Confirm business can operate on the three Yoga Instructors, and two Receptionists.
designated land Financial Information It should be noted that many of these positions
• Check environmental regulations and Based on a competitive analysis of other Nordic will only be required part-time.
spas that have been developed across Canada,
species protection
it is estimated that development costs can The thermal bath experience should range
• Determine legal and insurance
range from $4M to $12M. The initial investment between $50-$70 to remain competitive in
requirements for the Nordic spa in Chelsea was $4M, though the marketplace. Massage and body care
significant expansions have taken place over
Market Attraction the past decade. The location currently being
treatments tend to range between $100-
$160. Specialty treatments, such as access
Nordic spas are one of the fastest growing developed in Whitby has an initial investment to a zero-gravity saltwater pool – usually cost
trends in the health and wellness experience of $12M. an additional $40-$70. Additional revenue
market. Over the past decade, Scandinave
may also be derived from food, drinks, and
Spa has opened locations in Whistler, Old Other factors may impact the investment
boutique merchandise.
Montreal, Mont-Tremblant, and Blue Mountain. necessary to develop a Nordic spa. At the
The Nordik Group has opened locations in Winnipeg location, the harsh winters and
For the purposes of this financial assessment,
Chelsea and Winnipeg over the same period complex construction market led to project
delays and large cost overruns. Additionally, it is assumed that clients will spend on average
and is currently in the process of opening a $120 per person on the Nordic spa’s different
new location in Whitby. the investment required for the Whitby location
may increase to $35M if a hotel is determined services. Average daily patronage is projected
to be feasible at this location. to be 50 clients/day for 365 days a year.
However, no Nordic spas currently exist in
Alberta or Saskatchewan, indicating a large
gap in the regional market. While a number
of hot springs exist in locations like Banff and
Jasper, these types of spas offer altogether NORDIC SPA 5 YEAR FINANCIAL PROJECTIONS
different experiences.
Overall, Nordic spas tend to attract customers
from the wellness market and the luxury
market. Though all genders patronize Nordic $4M $4.38M $10.95M $2.57M
spas, the clientele and target market tends
to skew towards women. In particular, the
primary focus is on women in mid to high
household income brackets.
Estimated Net
Estimated Estimated
Age groups that patronize Nordic spas range Operating Operating
Capital Revenue
from 18 to 65. Within this age group, the Expenses Income
clientele tends to skew younger, with those Costs
aged 18-40 comprising the largest share of
the market. Many would be considered young
professionals or millennials. Children under
Ne w e l l Reg io n / 1 5Newell Region
Campgrounds
Building additional campgrounds is a these demand issues. There are not enough introduce tourists to the surrounding areas.
tourism business opportunity available to spots to meet demand via provincial park These campgrounds will also meet market
the private landowners surrounding Dinosaur services during the summer, and as the visitor demand for more local or private camping
Provincial Park. Over 100,000 tourists visit the rate to the region climbs, this disparity will be accommodations.
park each year, placing significant strain on exacerbated.
the campground accommodations within Business Description
the park itself. Creating additional camping space on the The business will be a campground, divided
privately owned land around Dinosaur into a number of pitches, where people can
The immediate benefit of expanding Provincial Park will, therefore, increase the camp overnight using tents, camper vans, or
privatized campsites is the addressing of accommodation capacity of the region and caravans. The campground will be operational
1 6 / Ne w e ll R e g io nn six months of the year, during the peak
camping season from May to October. The
campground will be based on private land;
where the land and the campground will most
likely be owned by the same individual.
Investing in private camping sites via privately
owned land, farms, or indeed smaller
properties will provide the opportunity to
broaden the services provided to campers. It
is possible to cater to different age groups via
Campers will likely be arriving by vehicle,
necessitating road access to the campsite.
A gravel or concrete pad on which to park a
vehicle may also be a necessity, particularly
for those tourists arriving in recreational
vehicles. Utility hookups, such as electricity
and water, would be useful for travel trailers
and recreational vehicles as well.
The following checklist should be used when
facilities at Dinosaur Provincial Park. This may
be because the private campgrounds may be
less crowded or offer more privacy and a quiet
atmosphere. The personalized service at a
private campground may also be appealing to
campers.
Campers are a loyal demographic, returning to
the same region and indeed the same site year
after year, and sometimes even for generations.
infrastructure strategies as well as levels of determining site eligibility: Families are a prime target market for these
service. campgrounds for this reason.
• Check zoning
Services other than accommodations may
also be offered at the campground. Wood may
• Ensure proper permits are in place Financial Information
• Confirm business can operate on the The major expenses for the campground will
be available for sale for use in cooking or for designated land be providing road and utility access. For the
a campfire. Sundries may also be offered for • Check environmental regulations and purposes of this financial assessment, it is
sale, such as toothpaste, toilet paper, snacks, species protection estimated that creating road access and gravel
and drinks. A portable toilet or outhouse, as • Determine legal and insurance
well as a portable camping shower, may also pads will cost approximately $20k. In addition,
requirements it is estimated that electricity and water access
be offered as a free amenity or for a fee.
will be another $20k over the five year period of
Tailoring the experiences of various sites will Market Attraction the business plan. It is also assumed that the
be further compounded by other initiatives, Campers will be attracted to the privately campground will be self-staffed by the business
such as the development of agri-tourism, owned campgrounds for two reasons. First, owner. These costs may be significantly lower
which could be extended to include on-site the core market demographic will be tourists depending on the accessibility of the sites
camping facilities for participating farms for visiting Dinosaur Provincial Park when the chosen.
example. Activities such as horseback riding campground is full during the peak summer
or ATV rentals may also be an option at the season. Additional expenses are estimated to be $3k
campground. for two portable toilets, $1k for two portable
Private campgrounds located near the park showers, and $2.5k for ten fire pits.
Site will benefit from overflow tourists seeking
alternative accommodation options. In terms of revenues, the average rate for
There are two likely potential locations to
These tourists are unlikely to prefer hotel campsites at Dinosaur Provincial Park is $30/
build additional campgrounds. The first is the
accommodations due to the higher price range night. It is also estimated that visitors to each
privately owned land surrounding Dinosaur
and distance from the park. Other provincial campsite will spend $10/night on sundries,
Provincial Park that has badlands terrain.
park campgrounds are also available, but at a such as bottled water, toothpaste, snacks, etc.
The second is the agricultural farmland near
further distance. Overall, it is assumed that five campsites will be
the hamlet Patricia, which is the nearest
community to Dinosaur Provincial Park. created in the campground, where occupancy
The second group of tourists will be those that will be 80% between the May-October peak
prefer private campgrounds to the camping tourist season.
Apart from a camp pitch, raised platforms
may also be included on which to set up tents.
Marked spaces indicating the boundary for
one camper or a group of campers may also
be necessary.
CAMPPGROUND 5 YEAR FINANCIAL PROJECTIONS
The campgrounds may also include fireplaces
or fire pits in which to build campfires. These
can be anything from a circle of rock, a metal
enclosure, a metal grate, a concrete spot, or
even a simple hole. Picnic tables may also
be included for campers to eat their meals.
$26.5k $20k $144k $97.5k
Garbage cans will also likely be necessary for
campers to place their refuse.
Pit toilets or a portable toilet will be needed Estimated Net
Estimated Estimated
on site. Similarly, a portable camp shower will Operating Operating
also likely be needed. These battery-powered Capital Costs Revenue
Expenses Income
shower heads are able to turn water from a
bucket into a shower stream.
Ne w e l l Reg io n / 1 7Fishing and
Camping Tours
The rise of glamping and guided excursions, sophisticated and advanced lessons and tours and expand their offerings to include guided
alongside the rise of self-developed expertise can be provided. hikes and nature tours.
and the extension of local knowledge
networks via the internet combine to create Business Description Beginner campers can have the option of
an interesting opportunity for the region. The region is known for its spectacular fishing meeting with a guide and learning how to set
and camping opportunities, as well as the up a campsite. Another option could have the
local culture around those activities. There is guide transport the gear to the campsites, set
Through guided fishing trips and/or camping a prime chance to connect these activities as up the tents, and create a meal to welcome the
trips, the unique history, landscape, and being essential to the regional experience. visitors.
ecosystems of the area can be introduced to
a new group of visitors while attracting more Camping tours as a broad base offer the chance This side can include private fishing instruction
who would not ordinarily choose the area for entry at various levels for individuals and as well as insider tips for the more advanced.
to holiday. For those who have experience businesses. Larger companies can build on Various types of fishing gear and styles can be
either in the technical side of fishing or existing product relationships with clients and prioritized or provided as a menu of options
have an intimate knowledge of the area, visitors (such as a camping equipment shop), beforehand. Fishing boats can be provided to
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1 8 / Ne w e ll R e g io ncustomers for the tours. stocked into many ponds and small reservoirs
throughout the Parkland-Prairie.
Market Attraction
Employment opportunities can be built into
For the more independent participants, and around these programs, with students
arrangements can be made to meet a fishing For adventure tourists, popular back-country apprenticing at the side of experienced locals
expert at a campsite. The participants hike locations can be used for camping. These in the fishing, camping, and tourism industries.
and establish their own campsite, then partner locations will not require infrastructural
with the fishing expert. For those groups that enhancements to maintain the adventure There is an untapped market of visitors to
want to maintain a sense of privacy or an experience. the region who would like to try fishing or
increased sense of adventure, printed maps more adventurous hiking/camping, but are
and guides, including wildlife-spotting cards For tourists seeking more luxurious overwhelmed by the resources necessary to
for example, can be provided along with gear experiences, existing campgrounds can be learn. In general, tourists and hobbyists have a
as a package experience. used. Potential locations include: Tillebrook case of data-saturation; so much information
Provincial Park, Kinbrook Island Provincial is available online that people become
At every price point, trips can include themes Park, Rolling Hills Reservoir Campground, paralyzed by the decisions necessary to buy
such as wildlife photography, bird-watching, Dinosaur Provincial Park, Emerson Bridge gear, research the trip and the conditions, etc.
fossil-bed examination and paleontological Campground, Poplar Grove Campground, The region can connect with visitors by offering
history, or even just simple geography and and Crawling Valley Campground. It should be a menu of options that have a focus on local
geology. noted that these campgrounds are usually full knowledge and businesses, as well as focusing
on weekends during the peak tourism season. on historical aspects as well as environmental
Food can be integrated at basic levels of picnic impacts of human activity in the surrounding
supplies all the way up to fully-local, gourmet Since a number of fishers and campers already area.
meals sourced from the region. Gear can be frequent these campgrounds, it is assumed
expanded to include binoculars, telescopes, that these sites will not require additional Financial Information
and cameras. road access or utility access. The business will The major expenses for this business model
simply organize tours to the best locations will be two fishing boats and fishing and
All styles of fishing/camping trips can include where fishing and camping is already taking camping equipment. It is estimated that each
educational versions, which highlight themes place. fishing boat will cost approximately $30k. Each
such as sustainability or appreciation and boat will require $5k in fishing and camping
understanding of the region’s natural resources. The following checklist should be used when equipment. An additional $10k is estimated for
There is an opportunity to work with local First determining site eligibility: two boat sheds, one of which can also be used
Nations to develop educational materials that as a storefront location.
teach about the original relationship with the • Check zoning
land and ecosystems that were in practice • Ensure proper permits are in place In terms of revenue, the average market rate
before the arrival of colonists. Tours can even • Confirm business can operate on the for fishing tours is $600/day all inclusive. It is
be operated with parts of the proceeds going designated land estimated that the usage rate of the business
to charitable organizations or initiatives. • Check environmental regulations and will be 40% during the peak tourism season
species protection from May to October. One staff member will
• Determine legal and insurance be needed for each boat at a wage rate of $15/
Site requirements hour for 18 hours.
The fishing and camping tours will be operated
at existing sites in the region. Likely fishing
locations are: Lake Newell, San Francisco Lake,
Crawling Valley Reservoir, Brooks Aqueduct
Pond, Cowoki Lake, Rolling Hills Reservoir,
Scots Lake, and the Red Deer River. FISHING & CAMPING TOUR 5 YEAR
FINANCIAL PROJECTIONS
The fishing locations in the County of Newell
are located in Zone 2 of Alberta’s sportfishing
regulations. This zone consists approximately
of the southeastern quarter of the province,
east of Highway 2 from the Montana border to
the North Saskatchewan River. $80k $243k $432k $109k
Four major rivers that start in the mountains
flow through the Parkland-Prairie Zone 2. For
most of the summer, these rivers are large, Estimated Net
silty and warm. Shallow lakes and reservoirs Estimated Estimated
Operating Operating
are also found in the Parkland-Prairie. The Capital Revenue
Expenses Income
most common game fish of the zone are Costs
yellow perch, northern pike and lake whitefish,
although walleye have been introduced
into several reservoirs. Rainbow trout are
Ne w e l l Reg io n / 1 9Transportation
Shuttle and Agri-Tour
There is an opportunity to develop tourism to various agri-tourism destinations. The incentivize the local community to provide
around the pre-existing agricultural farms will be separate tourism businesses in innovative insights into their businesses.
infrastructure and cultural heritage of the themselves, garnering revenue based on the
region. Many agricultural regions have sale of their products. The result is a spinoff Small-scale farms and businesses are able
branded themselves based on their produce effect of economic development amongst to participate by curating classic examples
and there is the chance to create a circuit or complementary tourism businesses. of “country-side” activities. Experiences such
network of businesses and groups that tie as hay-rides can be paired with seasonal
offerings of picnics. Spring can see children
into the cultural history of agriculture in the
County of Newell as well as its present and
Business Description and adults alike engage with baby animals,
The popularity of the farm-to-table culture and experiences can even be guided by large-
future. represents a wider opportunity to engage animal veterinarians.
visitors to the region. The creation of an “agri-
The agri-tour shuttle will be a standalone tourism circuit” would not only encourage Larger-scale productions can provide tours
business that provides transportation longer trips to the area by visitors, but also of facilities with different themes such as
2 0 / Ne w e ll R e g io nagricultural technology or a walk-through venues to be more receptive to tourism. further with the origins of food will be
of the elements that guarantee an “organic” This may involve building roads to improve inherently interested, and the possible tie-ins
status. accessibility and allow for shuttle service. This to the Dinosaur Provincial Park are strong.
may also involve safety precautions regarding Curiosity about the lives of the dinosaurs, how
For those who want a more fully immersive animals and health regulations related to they lived and ate, can be segued into learning
experience, overnight stays can be established livestock and food. about the various animals in the agricultural
in different tiers and themes. A “farm-to-table” landscape. Educational groups that are
experience could see a family waking up, Additionally, many of these farms may need to already making the park a destination can
working on the farm to gather various elements build picnic or dining areas for the full agri-tour increase the value of their trips by pairing the
of their meal and helping throughout the day, experience. Running water and electricity will paleontological aspects of their visits with the
and then finishing off with a dinner they have not be necessary. However, an outhouse or
current technology and processes around food
helped create. A “retreat-from-technology” portable toilet may be necessary if washroom
production.
experience could have a focus on the physical facilities do not currently exist.
aspect of farm work, with deliberate shunning
of internet connectivity in favor of outdoor The shuttle itself will need capacity to carry a There are also opportunities to create or
activity. number of passengers. The vehicle will likely liaise with charitable programs that take
be a large van or a small bus. Since the shuttle urban youth out of the cities to experience
Overnight field trips could have students service will visit tourism sites in the County, the agriculture, nature, and the scale of the land
camping by night and by day focusing on vehicle may also need the capability to travel in Canada. Volunteer positions can be offered
researching reports on various elements of the on gravel or dirt roads. This may limit the use to agricultural science students to lead tours
agricultural experiences they have. of a bus shuttle. Alternatively, some roads to and set up exhibits in the summers or as part of
tourist destinations may need to be paved to agricultural-education research. The gathering
Educational presentations can be allow for shuttle access. of these activities and possibilities onto an
integrated into food stands and farmers’ agri-tourism map ensure the widest reach
markets, providing a “drop-in” browsing The following checklist should be used when across visiting demographics.
style engagement with the culture of food determining site eligibility:
production. Financial Information
• Check zoning Business expenses are estimated to be
The region also has the opportunity to • Ensure proper permits are in place comprised of $25k for a minibus and $15k for
emphasize its long-term history, with • onfirm business can operate on the gas and maintenance. An additional $10k is
contextualization of what the dinosaurs were designated land estimated for shed storage, including office
thought to have eaten, along with the climate • Check environmental regulations and space and overhead. A driver is estimated to
of the period and what the growing conditions species protection
fetch a wage rate of $15/hour for 8 hours/day
and weather were like as opposed to modern- • Determine legal and insurance
and 3 days/week. A tour guide is estimated at
day history. requirements
$15/hour for 8 hours/day and 3 days/week.
Crucial to the success of initiatives like these
would be the development of an agri-tourism Market Attraction The pricing for the agri-tour should be $40/
circuit. Groups or businesses could apply or be There is fairly universal appeal to creating an person. It is assumed that 8 people will travel
designated points of interest on a published agri-tourism circuit in the region. Families, three days/week during the peak tourism
map. There could be trail biking routes individuals and groups wanting to engage season between May and October.
between certain destinations and a regular
shuttle bus could make a rotation between
larger destinations. The products from these AGRI-TOUR 5 YEAR FINANCIAL PROJECTIONS
businesses could also be included in special
markets or gift shops, perhaps even with an
appellation process.
The tourism office and hotels would carry these
maps as well as booking information for the
shuttle. The shuttle would permit accessibility $35k $68.6k $124.8k $21.2k
both for more remote areas to participate as
well as for those visitors with less mobility.
Site Estimated
Estimated
Estimated
Net
The main sites of the agri-tour will be locally Operating Operating
owned farms on agricultural land. Many of these Capital Costs Revenue
Expenses Income
sites will likely already have the agricultural
features necessary for this business venture.
However, these farms will need to alter their
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