Signature Resorts Earn Profit

After one year under new management, the province's three Signature Resorts are now making a profit.

The three resorts -- Keltic Lodge in Ingonish Beach, The Pines Resort in Digby and Liscombe Lodge in Liscomb Mills -- ended the year 2002 with a net profit to the province of $918,879. That is double original projections and a dramatic turnaround from the annual net loss to the province of about $1.3 million in 2001.

The province reinvested $518,000 of the net profit back into the resorts as part of the agreement.

New Castle Hotels took over all tasks associated with operating the resorts in February 2001 under a 10-year contract with the province. For 2002, the firm was paid a management fee of $330,791, or three per cent of the gross revenue, and incentive fees of $49,670 as outlined in the contract.

"We are pleased with the strong performance of these resorts in the first year of the management contract with New Castle," said Rodney MacDonald, Minister of Tourism and Culture. "The resorts are an important part of our tourism product and provide economic benefits for the local communities. And now they're providing a direct return to the taxpayer, ahead of schedule."

The Nova Scotia resorts employ 400 staff in both full-time and seasonal positions and have a payroll of about $3.8 million a year. Resorts are considered premier destinations for visitors to the province. They also serve as anchors for other tourism businesses and act as economic generators for local communities.

Capital improvements are planned for all three resorts over the first three years of the contract to make them even more attractive and competitive. The province is investing $10 million to upgrade the three facilities. That will be paid back through resort revenues. The capital projects are also expected to result in increased revenues for the resorts, more jobs and greater local impact.

"The capital plan will allow us to upgrade the resorts to ensure we are competitive in the individual traveller, group and convention markets," said Guido Kerpel, area manager for New Castle Hotels. "In addition, through the capital plan, we will be able to add guest services and facilities the modern traveller has come to expect from these Nova Scotian icon properties."

For 2002, the three resorts had revenues of about $11 million, an increase of more than $279,000 over the revenues in 2001.