A Response to the Report: An Assessment of the Economic Benefits of the Proposed JGR Project, dated May 26, 2011, by Marvin Shaffer and Associates Ltd.

by Alan Artibise, Ph.D., MICP of CASCADIA Planning Group __________________________________

July 15, 2013

     

     

     

 

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Table Of Contents 1.0 The Essential Points Made in Shaffer Report……...………………..…………3 2.0 Economic Benefits………………………………………………………………..4

2.1 Tourism Opportunity…….………………………………………………..4 2.2 Employment Opportunity..………………………………………………..6 2.3 Tax Opportunity….………………………………………………………..8

3.0 Growth Rate of the Ski/Tourism Industries……………………………………9

3.1 Canadian Market…………………………………………………………..9 3.2 USA Market……………………………………………………………...11 3.3 Emerging Markets………………………………..………………………12 3.4 Sightseeing……………………………………………………………….15

4.0 Feasibility of the Project………………………………………………………..16 5.0 Impacts & Effects of Competition……………………………………………..17

6.0 Job Creation…………………………………………………………………….19 7.0 Government Involvement & Benefits………………………………………….20

8.0 Displacement of Heli-Ski………………..………………………………….…..22 9.0 Land & Resource Use - Sustainability………………………………………...23 10.0 Jumbo Glacier Resort…………………….…………………………………….25

10.1 The Snow………………………………………………………………...25 10.2 The Ski Runs………….………………………………………………….26 10.3 The Sightseeing Experience………………..…………………………….26 10.4 The “Backcountry” Valley Experience………..…………………………27 10.5 The Access and Market Area….…………………………………………27 10.6 JGR will be Poaching Existing Markets or Expanding the Market?....….28

12.0 Bibliography…………………………………………………………………….29

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I have been requested by Glacier Resort Ltd. to provide my opinion in connection with a report prepared by Dr. Marvin Shaffer, commenting on the Jumbo Glacier Resort (“JGR”) project. My instructions were to provide my objective opinion on the matters on which Dr. Shaffer comments. I received those instructions verbally from Mr. Oberto Oberti. I have expertise in project planning, and have been involved in ski resort projects, including the successful Kicking Horse Mountain Resort. I have had involvement as a planner in JGR. A copy of my curriculum vitae is appended to this report. In connection with the preparation of this report I have assumed that JGR will be developed in accordance with the parameters set out in the JGR Master Plan. I have reviewed and am familiar with the Master Plan. I have not made any other assumptions in preparing this report. An index of the documents referenced in preparation of this report is set out at part 12.0. 1.0 The Essential Points Made in Shaffer Report

The Ktunaxa Nation Council is opposing the JGR project and commissioned a report by Marvin Shaffer and Associates to dispute the economic validity of the project. The report argues that it is doubtful that the JGR project would be a worthy undertaking. Essentially the report raises these points against the project and its approval:

1. The proponent and the Environmental Assessment Office (EAO) misjudged the factors affecting an evaluation of the economic benefits of the JGR project;

2. The evaluation and projections of skier visits is not consistent with expected B.C. skier visits;

3. The financial feasibility has changed because of worsening economic conditions;

4. The project would be poaching resources and tourists from other resorts;

5. There should be no expectation of economic benefits because of jobs generated by the project;

6. The value of the project to the Province is more likely to be negative than

positive;

7. The project is expected to ruin the viability of the heli-ski operations of RK Heliski Panorama; and

8. The value of benefits generated by the project would be rather insignificant, while the negative impacts would be significant.

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A review of the facts related with the ski and tourism industry and the type of project being proposed will show that Dr. Shaffer’s assertions regarding the economic and overall impact of JGR on the surrounding communities and on the province of British Columbia are ill founded, and do not relate correctly to the fundamentals of the project and the nature of the ski and tourism industry. 2.0 Economic Benefits

2.1 Tourism Opportunity:

The Tourism Industry of British Columbia is a vital economic component of the Province’s economy: “The Tourism Industry continues to play a significant role in the BC economy in terms of revenue earned by Tourism businesses, value added to the economy by Tourism activities, and creation of employment opportunities.”1 Tourism is a service and product based business that is supply driven. The Province must offer a unique product and/or service to attract both new and returning clientele.

The industry has seen growth for decades, and continued with growth since 2000 (with the exception of the global economic depression immediately after 2008) and has become a large generator of revenues. “The Tourism Industry generated revenues of $13.4 billion in 2011.”2 The Provincial Government has just begun to realize the potential to expand this industry and has adopted a more decisive approach to achieve its growth: “The Province has recognized that the Tourist Industry has immediate potential and has a stated objective to achieve sector revenue of $18 billion by 2016 (5% growth per year).”3

The right way to grow the Tourism sector in British Columbia is to properly utilize the natural endowments of the Province, attracting tourists to unique sights and activities. If properly selected, these sights and activities, especially in the mountains, will be unmatched by anything else in Canada, and on a par with the best in the world. It is an obligation of the Province to achieve the highest and best use of the land in a sustainable manner.

B.C. can offer glacier access and some of the highest mountain peak elevations near the established National Parks of the Canadian Rockies. It can also offer a beautiful coastline along the Pacific Ocean. This unique and desirable geographical makeup can be sustainably developed so that it can be fully enjoyed by both national and international patrons, without taking market share from existing facilities but, rather, by expanding the clientele.

In order to experience a surge of growth, the current strategy and business model must be improved. Opening superior locations, expanding globally, targeting other markets, and                                                                                                                1 Tourism B.C. (2012). Pg. 2 2 Ibid. 3 (2012). The Tourism Industry In British Columbia. Pg. 3

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diversifying: all are proven methods of capturing new business and clients.4 The tourism industry and the ski industry need to adopt these proven business methods if they wish to experience the rapid growth they desire.

All of these methods for growth can be achieved through sustainable and unique destination resort development in the best mountains, combining the tourism industry focused on sightseeing and snow sports, with skiing being the most promising area of steady growth. “B.C. is well positioned to increase its skier visits by initially renewing and expanding its ski areas for the regional market, and then by broadening its appeal with prime destination ski areas and resort development catering to the larger international market.”5

The development of a new year-round destination resort with unique access to major glaciers and the ability to compete internationally will generate new interest, attract new clients, and give the tourism industry the momentum it needs. The JGR territory has already been tested by leading skiers of the world, such as Franz Klammer of Austria, and has been anticipated and acclaimed by ski magazines, even before opening.

The JGR project was born of a research initiative funded by a Japanese company to find the best possible location for a ski resort in North America. The project was undertaken because it was recognized that the North American ski product offerings could be brought to a new level in terms of natural setting, climate and snow. Existing North American resorts are located in areas of unreliable climatic conditions and at too low elevations (Whistler, Revelstoke), receive too little snow, or are located in too-cold climates (Lake Louise, Sunshine) or lack vertical drop and year round glacier skiing (Colorado/Utah). Most ski areas depend on artificial snowmaking. Unfortunately, current policies make the expansion of existing ski resorts generally easier than creating new ones, but in order to attract a new, international clientele and to expand the market it makes sense to offer a new and superior product in the right location.

Geography indicates that Western Canada still has the greatest undiscovered opportunity for sustainable mountain resort tourism in North America. It is a huge area with a vast and promising potential, discovered already at the turn of the last century with the creation of the National Parks of the Canadian Rocky Mountains.

It was the time when the Canadian Pacific Railway Company initiated the Banff Springs Hotel and Chateau Lake Louise as long term projects to serve tourists in the area. The railway dictated the choice of location. These projects are ongoing, and have proven the strength of a market that has grown even faster than Western Canada and that has captured the imagination of the world.

                                                                                                               4 Spaeder, Karen E. (2004) 5 (2012). The Tourism Industry In British Columbia. Pg. 3

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As the once prominent mining and forestry industries are challenged, tourism expansion seems to be logical economic frontier for British Columbia. Accessing the best mountains and the views and the skiing that only helicopters are currently providing is a logical solution and the key to success for tourism in B.C. In other words, sustainable and unique destination resort development is the way of the future for this industry.

JGR was born as a project that would respond to the need to create a ski resort that could guarantee an abundance of natural snow in winter all the way down to the resort base. In addition, none of the ski areas in B.C. access glaciers that offer year round skiing and the kind of scenery that draws people from around the world. People visit in great numbers the Columbia Icefields in Jasper National Park despite the fact that they can reach just the toe of the glaciers.

JGR is located 53 km west of Invermere, in the Kootenay Rockies. The Kootenay Rockies boast some of the best elevations and snow conditions in the world, but are underdeveloped, with the best areas accessible only by helicopter. They only have a 5% market share of Provincial Tourism, and despite some growth in the ski areas of the East Kootenay region, “Northern BC and the Kootenay Rockies each experienced an 8% decrease in the number of Tourism establishments since 2003….”6 This is in contrast with the steady growth of the ski and tourism industry in North America and in the National Parks of the Canadian Rockies nearby. JGR could change the economic dynamics of the East Kootenay region and create a new destination for British Columbia near the National Parks of Alberta, as well as allow Canada to compete with some of the best skiing/sightseeing available worldwide.

2.2 Employment Opportunity:

The East Kootenay region only owns a slowly decreasing 5% market share of the Provincial Tourism Industry. This small market share, combined with a high rate of unemployment, begs for improved local conditions: “The heavy losses during 2008-2010 still leave our region with the second highest unemployment rate in B.C.”7

However, optimism can be found among the locals in the Kootenay region. “Looking ahead, as ground breaks on a number of major new projects, this positive economic momentum should continue into the coming year.” 8 The region relies heavily on construction and major development projects for sustainability. JGR, estimated initially as a $450 million dollar year-round destination project, now in the $1 billion range, would require temporary construction jobs but also provide a large number of full-time (estimated at 800 to 900 full-time jobs on site) and part-time resort related jobs.

In an effort to boost the tourism industry and raise the employment level, the Province of

                                                                                                               6 Tourism B.C. (2012). Pg. 24 7 Verboom, Kesley. (2012). 8 Verboom, Kesley. (2012).

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B.C. needs to be fully supportive of the proposed destination resort. “For years, governments in many countries have actively promoted job creation in slow-growth areas to mitigate their relatively high unemployment rates.”9

The key factors governing the employment, government or other benefits of the Jumbo Glacier Project were one of three two central points of study and review since the start of the Environmental Assessment Act process in 1995 (the others being the impacts to the environment and First Nations’ interests and issues).

The Environmental Assessment Office (EAO) in the Draft Project Specifications issued on December 13, 1996 dedicated section A-63 to section A-110 to economic, social and community issues.

These were reviewed until May 1998, to ensure that all social and economic aspects of a potential review, including those noted by Dr. Shaffer, had been discussed and included in the required reports, as applicable to the project, when the Final Project Specifications were issued, on May 20, 1998.

In the 13 volumes of the Project Report that comprise the summary of the studies and reports prepared from July 1990 to December 2004, the entire Volume 4 (Part E-Socio-Economic and Community Issues), responding to the Project Specifications, summarizes world wide research and covers with an abundance of information the responses to Dr. Shaffer’s points. These responses are verified by fact and continuous updating.

The best response to Dr. Shaffer’s assertions, however, is by way of example: the creation of Kicking Horse Mountain Resort (a destination which is clearly inferior to the draw of JGR) has been of great benefit to the community in Golden, it has generated net employment growth, no significant social displacement, and a considerable increase of tax revenues to the three levels of Government. Whistler is perhaps an even bigger example of the benefits offered by a new destination ski resort, despite its climatic challenges in winter.

Dr. Shaffer’s assumption of the project draining a small local economy with a fixed and limited number of dollars is an erroneous assumption. The theory of a constant or shrinking economic pie as a necessary starting point of an economic review is an ideological assumption not based on evidence and on history, and is a threat to planning any new project leading to greater prosperity and a sustainable economy. There are many valid bases for the assumptions of the proponents’ consultants that the project will add to the local economy, not drain from it, and to cite a nearby example Kicking Horse Mountain Resort (KHMR) did not cause the local reduction of spending in other areas that Dr. Shaffer takes for granted. Instead there was a net increase in the overall spending, because the locals started spending more and because there were more

                                                                                                               9 Kuo, Chun-Yan. (1997). Pg. 67

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people from the outside coming in to spend, and the increase in jobs and businesses has created new general prosperity. The locals in Golden are very satisfied with the ski resort and would like it to grow. Kicking Horse Mountain Resort applied for a major expansion in 2008, and it was approved in 2010.

2.3 Tax Opportunity:

Tourism as an industry generates a high level of revenue for the province: “In 2011, the Tourism Industry generated $1.13 billion in revenue from provincial taxes.”10 This is a valuable industry, currently underdeveloped and representing one of the best potential areas of sustainable growth. The development and growth of the tourism sector will provide the Provincial Government with greater revenues, and help sustain the cost of provincial services. The Ministry of Forests, Lands and Natural Resource Operations (FLNRO) Resort Development Branch (RDB), the Canada West Ski Areas Association (CWSAA), and the Research, Planning and Evaluation Branch of the Ministry of Jobs, Tourism and Innovation have conducted a study to determine the economic value of mountain resorts to the Province of British Columbia. Here are some of their findings:

Mountain Resorts Incremental Visitor Expenditures: From the Visitor spending of $769.1 million, the associated effects on supplier industries and induced expenditures

are: • Total output of $800.8 million;

• Gross domestic product of $401.3 million; • A total of 7,665 equivalent full-year jobs supported in the province, with wages

and salaries of $275.2 million; • Federal, provincial and municipal taxes for $57.2 million, $85.5 million and $11.2

million respectively. 11

These findings give an indication of the potential impact that mountain resort destinations can have on the economy of their surrounding areas, and of the Province as a whole. Through taxation, gross domestic product contribution, and job creation, destination resorts will have the ability to become a driving force behind the economy of British Columbia. An ideal opportunity seems to present itself in the form of mountain access for year round skiing in the best climate and unique sightseeing. JGR is a new and unique destination resort that will add revenues to the Province and contribute to local economic growth.

                                                                                                               10 Tourism B.C. (2012). Pg, 15 11 Canada West Ski Areas Association (CWSAA). (2011). Pg. 21

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3.0 Growth Rate of the Ski/Tourism Industries 3.1 Canadian Market

The Canadian ski market has been both resilient and stagnant in recent years 12. In

the difficult 2008/09 season, 18.7 million skier visits were recorded despite a recession, a strong Canadian dollar, and poor snow conditions at key resorts – 2 % below the five-year average. The market has rebounded again with 19.2 million in 2010/2011, the third highest on record. Additionally, another 2% increase was measured in 2011/12 for BC, according to the latest Canada West Ski Area Association (CWSAA) data.

The Marvin Shaffer and Associates report shows the chart below, for years 2001 to 2011, as a basis of its review of skier market potential in B.C. This is too short and gives a distorted view of the pattern of growth of the industry.

Dr. Shaffer’s comments on skier visits, showing a leveling off and even decline in Canada, are misleading because by selecting a relatively small and particular number of years they do not show the long term trend and potential of the ski industry in Canada and especially in B.C.

The Tourism Industry in Canada is capable of expansion, and particularly in B.C., it has great potential to achieve it, surpassing the phenomenal growth of the last 50 years in Western Canada. In 2012 we saw a headline as follows: “A new marketing campaign aimed at attracting long-haul vacationers to B.C. ski resorts hits the streets of Toronto

                                                                                                               12 Canadian Ski Council. (2010).

Figure  1:  Canadian  Skier  visits  2001-­‐2011  

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today.”13 The campaign was launched in California and Washington and had a budget of 1.55 million dollars, with an enticing theme of ‘ski it to believe it.’ Thirteen of the major hills/resorts in British Columbia signed on for the marketing blitz, but obviously having more attractive new destinations and ski products would improve the chances of success of the marketing campaign. The best way to achieve the expansion of the ski industry in B.C. is through the development of the best natural product it has, the best mountains.

It is very important to note that the B.C. ski industry is very different from the rest of Canada. From 1978/79 to today it grew by some 400%. Basically this is from the birth of the Mountain Resort Municipality of Whistler and the opening of Blackcomb to today.

B.C. skier visits figures show the 400% growth pattern since the 1970s, primarily because of the rise of Whistler and Blackcomb (but also of interior resorts like Sun Peaks, Big White, Panorama and Fernie). The Alberta ski industry also grew by 200% in the same period.

The history of resort development in B.C. confirms the argument that the industry is supply driven and that new product in the right conditions will make the market grow, and not just take away market share. In the last few years, skier visits peaked before the 2008 recession, but have already regained substantially the same numbers of the previous peak.

The two factors affecting the success and growth in North America’s ski areas are product improvement and good climate (sun and snow, like in Colorado, which lacks the vertical drop and glacier available in B.C.). Better locations have been attracting greater

                                                                                                               13 British Columbia. Newsroom. (2012).

Figure 2: Skier visits 1979 -2011  

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and greater numbers of skiers and the general trend in North America has shown a statistical increase in the number of skier days.

JGR is a new product that can offer conditions unsurpassed by anything in the North American continent. Being conceived and designed as a year round destination resort, and not simply a ski hill, changes the whole strategy of the past in the ski industry.

Winter sports (skiing, snowboarding, tubing, snow-shoeing) are being offered year round as well as sightseeing opportunities that are only matched by alpine destinations in Europe. Providing these options will attract a much larger group of international clients. Drifting the focus slightly away from pure snow sports and providing patrons with a variety of sightseeing activities will allow JGR to cater to a wider clientele and a larger demographic that will spend a longer amount of time at the resort.

3.2 USA Market

The U.S. skier industry also demonstrated considerable resilience in the past, and severely difficult seasons have been relatively rare. In the 2008/09 season, at the peak of the financial crisis and recession, U.S. skier visits totaled 57.4 million, the fourth best on record. In 2009/10, skier visits were 59.8 million - only 1.2 % below the then record 60.5 million visits achieved in 2007/08.14 The 2010/2011 ski season saw a record 60.54 million skier visits ,15 bolstered in part by above-average snow conditions in the Western half of the continent, a phenomenon which underlines the significance of snow conditions in generating skier visits. The ski industry in the U.S.A. can be affected by bad snow years (and again, this shows the importance of offering skiing where there is always snow, naturally), but it has shown that it is one of the few industries that continued to grow despite the recession. Visits to American resorts dropped by 15 % for the winter of 2011/12,16 directly linked to poor weather conditions and lack of snow across many regions of the U.S, and this represented the biggest drop since the winter of 1980-81. However, in 1981-82, with a return of the snow, there was a 22 % increase in visits. A similar pattern was repeated following the bad snow season of 2011/12, with a full recovery in the most recent season.

                                                                                                               14 (NSAA). (2013). Industry Stats 15 Ibid. 16 First Tracks: Online Media. (2012).

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As noted above skier visits did drop by about 15 % in the 2011/2012 season, which had the worst snow season in twenty years, but this did not indicate a market collapse or permanent downturn, instead as it happened before, the visits recovered immediately the following year, with the return of the snow. Statistics show the close relationship between snow and skier visits. This is one of the fundamental reasons to locate a ski area in Jumbo Valley, with access to glaciers and to natural snow not only in winter, but also in the summer.

Dr. Shaffer’s report does not take into account the fundamental points above, which are the reasons why, despite the drawn out approval process of 22 years, the JGR project is still an industry leader that will bring the tourism and ski industry of British Columbia to a new level.

3.3 Emerging Markets

110 million people generate approximately 400 million skier visits on a worldwide basis and this seems to be on a growing long-term trend. While the participation rate in Canada has declined moderately in recent years, it is likely that the Eastern European and Asian markets will expand their skier visits figures over the new decade. The worldwide skier visits may then increase to reach over 420 million by the year 2020.17 The North American ski industry has grown steadily over the past few decades and now generates some 90 million skier visits per year, or approximately 23 % of total world

                                                                                                               17 Vanat, 2011.

Figure 3: Visits to American Resorts

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skier visits. Comparatively, Central Europe (the Alps) has a 45 % market share, Western Europe (i.e., ski areas not situated in the Alps such as those in Spain, Poland, and Scandinavia) 11 %, Eastern Europe 6 %, and Asia and the Pacific, 15 %.18 British Columbia captures 1.5 % of the world’s skier visits (6.4 million skier visits in 2011-12) or 7.5 % of North America’s skier visits, having increased 2 % from the previous year, and having grown from the 1 million-range in the early 1980’s. The initial growth is largely attributed to the creation of Blackcomb in the 1980s and the growth of Whistler Blackcomb as an international destination, now accounting for more than a third of all skier visits in British Columbia. Alberta ski resorts also improved during the growth of Whistler Blackcomb and benefited from spillover as the popularity of skiing in Western Canada gained momentum. Therefore, skiing is supply-driven,19 evidenced by the fact that regions with ample quality product and new product development consistently record better skier visits. While investment and market growth has begun to slow, new markets are emerging. At Whistler, it is increasingly common to share a chairlift with skiers from the U.K., Australia, Mexico or China, as well as from the U.S.A. and Eastern Canada. China is the fastest growing skier market in the world, rising more than 1,500% in the past decade. Chinese skiers rose from 200,000 in 2000 to over 3 million currently, generating approximately 5 million domestic skier visits. While there have been growing pains,20 21 projections for China’s ultimate market potential range from 27 million, according to the United Nation’s World Tourism Organization, to 120 million, dwarfing all existing skier markets.22 Chinese outbound skiers fit the demographic profile of typical long haul leisure travelers for being very informed and in a higher income bracket in the home country, and share a similar view toward an ideal long haul ski vacation (i.e., a reliable major ski facility with good climate and snow conditions set in magnificent scenery – all at a price that is fitting for the quality of the product and available alternatives 23). The Asian Travel Monitor reports that 32 % of survey respondents said they would travel more in 2012 than in 2011, with 37 % reporting similar travel plans. The Canadian Tourism Commission’s (CTC) Tourism Fact Sheet predicts a 25 % increase of overnight trips to Canada from Asian Markets in 2012.24 Spending in Canada by Chinese travelers

                                                                                                               18 Ibid. 19 Ecosign, 1998 20 Irvine, Dean. (2010). 21 Interestingly, some of the major resort developers in China have Canadian origins - Vancouver Sun (2007) & Market Wired (2011) - and raise capital on Canadian markets, which speaks in part to the difficulty of developing new products in North America due to regulatory and other hurdles, despite the appearance of favorable climate for investment. 22 Vanat, 2011. 23 Tourism B.C. (2012). China: Visitor Market Profile. 24 Canadian Tourism Commission. (2012).

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is forecast to rise 18% in 2012 and a further 15 % in 2013.25 In 2011, visitor entries to Canada from Asia totalled approx. 1.3 million,26 marking a 5.3% increase from 2010. Consumer travel research consistently ranks sightseeing activities around a 90% participation rate. An average of 51% also visited a national or provincial nature park.   Travel demand in Asia continues to rise due to a thriving economy driven by a large, ‘relatively’ well-off middle class, “Asia remains the powerhouse for world Tourism growth this year with strong growth of 7% in outbound travel as incomes rise and consumers are able to travel more.” The outlook for 2013 is even stronger, experts said at the World Travel Monitor Forum in Pisa, according to the ITB 2013 Global Travel Trends Report.27 Disposable income is increasing in China, South Korea, South-East Asia and India and the 2011 World Wealth Report from Capgemini and Merrill Lynch Global Wealth Management reveals that Asia Pacific now houses more wealthy people than all of Europe.28                                      

                                                                                                               25 Nevin, Margaret. (2013) 26 Statistics Canada (2012). 27 IPK International. (2012). 28 Capgemini Worldwide. (2011)

Figure 4: Participation rates in tourism activities for select Asian countries  

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3.4 Sightseeing

The JGR project is not only just two and half hours of easy driving through the beautiful Columbia Valley from the recently expanded Cranbrook International Airport, but also only two and half hours of very scenic driving from Banff through Kootenay National Park. And Banff National Park is a very interesting tourism draw, because its activities for the urban traveler are very limited, and the view of the best mountains is only accessible with a very long hike or by helicopter from Canmore nearby. Despite that, Banff has had a consistent and stable Tourism growth and it has surpassed 7.5 million visitor days, which is more than three times the visitor days at Whistler-Blackcomb, despite the fact that the bed base of Whistler and Blackcomb is more than double than that of Banff National Park. More than 30% of the visitors to Banff National Park come to do no other activity but sightseeing. If only 10% of the Banff National Park visitors wanted to include not only the view of Columbia Icefields from the dirty toe of the glacier, but also the views of Jumbo Glacier and of the Lake of the Hanging Glacier from the height of Glacier Dome, this would represent more than 750,000 visitor days. This is more than necessary to make JGR a success, without taking anything away from any other tourism resort in B.C., but actually creating a new destination for out of Province and international visitors. Despite the existing attractions and proven draw of Canada’s Rocky Mountains, there are no opportunities to access glaciers easily and enjoy the rarefied air and stunning vistas from 3,000 meters elevation and higher. Providing such an attraction will give JGR a unique opportunity to capture a meaningful percentage 29 of the Canadian Rockies tourism market.

                                                                                                               29 Simply capturing 5% of the current visitors to the Canadian Rockies would yield 320,000 yearly visits to Jumbo Glacier Resort.

Figure 5: Purpose of Trip to Canadian Rockies  

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4.0 Feasibility of the Project

Mountain resorts are already a valuable component of the B.C. tourism industry, with proven feasibility and contribution to the provincial economy: 40 mountain resorts ranging in size and seasonality are further divided into 13 destination mountain resorts and 27 regional mountain resorts (ski hills). The destination mountain resorts contribute $1.1 billion of revenue, a gross domestic product of $730 million and employment of 14,267 full-time equivalent jobs with wages of $460 million to the economy of B.C.30 A good method of determining feasibility for a new project is to analyze the current market and the success of similar and competitive products. The commercial success of providing spectacular mountain access for sightseeing first, and for sports second, has been proven for over a century in many locations of the Alps. For example, the Jungfraubahn mountain railway constructed in the early 1900s provides access to the Jungfrau mountain arrival station at 3,454 m (11,332 ft) for sightseeing and views of the spectacular Aletsch Glacier. It initially drew visitors from across the continent (England, Russia) at the beginning of the 20th century, and now it draws visitors from around the world (U.S.A., Japan, China, India and many other countries). The single lift generated 765,000 visits in 2011, CHF 110,000,000 in revenue and a stable annual profit of $25.4 million.31 Comparatively in the National Parks, during peak months, up to 5,000 people per day visit the Sulphur Mountain Gondola in Banff.32 Making conservative assumptions of June-September as the four peak months, this results in more than 600,000 gondola visitors per year, noting that the gondola remains open year-round. Meanwhile, Columbia Icefields Bus Tours also report over half a million guests during a normal season,33 showing steady traffic of Rocky Mountain visitors across multiple iconic sightseeing destinations. The heart of the U.S. skier market is situated in the central Rocky Mountains, in Colorado and Utah, generating almost double British Columbia’s skier visits with roughly double the number of destination resorts, even though it has a very similar population base (in fact, combined, B.C. and Alberta have a slightly larger population than Colorado and Utah), less favorable access (fewer major airports and more difficult road conditions), 34

                                                                                                               30 Ski Industry in North America Pg.7 (Pheidias 2012) 31 Jungfrau. (2011). 32 Explore Rockies. (2013). Banff 33 Explore Rockies. (2013). Columbia 34 For example, Aspen is 4 hours by car from Denver. Telluride is accessed from a small airport at Durango,

which would compare with Cranbrook and Fairmont Airports. Telluride is an interesting example for Jumbo Glacier Resort. It is similarly distant from major population centres (albeit via more difficult mountain roads) and it had a similar population base (ca.1,000) to Panorama and Invermere when ski resort development began in earnest in the 1980s. The village now has over 2,000 people and its ski resort generates a substantial 450,000 skier visits/year. This compares very closely with what Panorama and Jumbo Glacier Resort will become.

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inferior mountain elevations (generally base elevation too high and vertical drop too small) and presents greater challenges to international tourists (visa requirements, heightened security, more flight connections). The feasibility of the JGR is strongly supported by any informed comparison with the industry both in Europe and in North America.

5.0 Impacts & Effects of Competition

It is also very important to note that the B.C. ski industry is very different from the rest of Canada, having grown by 400% from the time of the birth of the Whistler Mountain Resort Municipality. Whistler (short form for the Whistler Blackcomb development) is the most significant driver of the ski industry in Canada and even more in B.C. Although Whistler has a long and interesting history, Dr. Shaffer is starting his statistics of the ski industry in 2001, creating a chart for the period 2001- 2011, as noted above at 4.1, Figure 1. This is focusing the view on the period after Whistler and Blackcomb had become one ownership, and when Whistler, together with the other Intrawest Resorts, was sold with a highly leveraged buyout to the Fortress Group of New York in 2007, almost creating bankruptcy for Whistler in February 2010 under the Fortress imposed debt of $1.7 billon. It was also the time of the steepest economic recession. This is not an appropriate way to make a comparison with a new project, with no debt, to be financed with equity, and with all the winning cards to be a preferred destination in terms of location, climate, and skiing and sightseeing product. Interestingly,

Figure 6: B.C./Alberta vs. Colorado/Utah  

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the opening of Blackcomb next to Whistler did not bankrupt Whistler as many predicted, but contributed to the growth of both. The 400% growth pattern of the B.C. skier visits since the 1970s is due primarily to the rise of Whistler (and also of interior resorts like Sun Peaks, Big White, Panorama and Fernie). Also the Alberta skier visits grew by 200% in the same period without the creation of a destination of the size of Whistler.

The growth of skier days in B.C. did not happen by taking skiers away from elsewhere in North America (skier numbers increased in Alberta, and in the U.S.A., especially in Colorado, although at a lesser pace), and it was primarily driven by the continuous growth and improvement of the product offered, especially at Whistler, with new lifts and new ski runs opened almost every year, particularly when Whistler and Blackcomb were competing. In fact, when Blackcomb was permitted to open with the Aspen group, and then to restart with Intrawest in 1986, many people believed that the Province was making a big mistake, threatening its most important ski area, but time proved that it was not a mistake.

The temporary B.C. weakness in growth of skier days ignores the fact that the American skier visits showed signs of resilience right after the economic crisis of 2008. The bad snow year of last year and the sudden drop in skier days in the U.S. because of the lack of snow only indicates the importance of creating new ski areas where there is always a natural abundance of snow. In any case, the skier visits rebounded immediately with a good snow year south of the border, despite the recession. Significantly, when Kicking Horse Mountain Resort (KHMR) opened, Panorama nearby grew in skier visits, with a repeat of the phenomenon that generated the growth of Whistler and Blackcomb. In Golden and in the Columbia Valley both KHMR and Panorama did not generate a decline in spending; on the contrary, the local chamber of commerce is very satisfied that they have sustained and expanded the local economy. Growth in access to the mountain as well as spending by locals also happened in the Squamish to Pemberton corridor with the growth of Whistler. Tourism and skiing are a supply driven industry that does not reduce the economic growth of the other areas of the economy, and the creation of resorts nearby reinforces the draw of a region. It is a well known economic theory, based on century old experience, that a restaurant or gas station are more successful when there is more than one at an intersection. The ski industry is no different. Again, in B.C. this was especially proven by the example of Blackcomb, created next to Whistler.

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6.0 Job Creation

The Kootenays had higher unemployment than the rest of B.C. even before the economic crisis of 2008, and unemployment continues to be a key challenge of the region. It would be reasonable to admit the fact that in the East Kootenay region there will be more and better employment opportunities, certainly in the area ranging from Cranbrook Airport to the project site, with the project going ahead, regardless of the current economic downturn. Creating a destination tourism product that is very needed in the economy of the region will bring people and sales not currently available. It would be absurd to stop a prime project in the name of the uncertainties of the current economic downturn, a project that is destined to create an economic engine lasting in perpetuity. Predicting future economic cycles is difficult, difficult enough that it would be futile to base any form of evaluation on the latest economic downturn to examine the economic prospects of a destination resort project under review for 20 years (more than twice the length of the chart of skier visits from year 2001 to year 2011 utilized by Dr. Shaffer) and created to last for a century and longer. Considering the prospects of the project in the current economic downturn it should be clear that it is exactly a prime tourism destination that is needed and capable to assist the region in its efforts to exit the negative economic situation and to create jobs. Most of the local employment providers support the project because they, like the Columbia Valley Chamber of Commerce and the B.C. Chamber of Commerce, believe that the economic benefits will be generally very positive. It is noteworthy that unlike Dr. Shaffer, the local International Union of Operating Engineers has always supported the project in the strong belief that it will be an important job generator and that these jobs, generated by JGR, are very important to replace those that are being lost in the other industries, a trend that started being noted during the East Kootenay CORE (Commission On Resources and the Environment) process in the early 1990s. At the East Kootenay CORE Table, this kind of tourism project was considered an important way to mitigate forestry and mining job losses, despite the small footprint of the project. Unfortunately, the process to final approvals has been much slower than anticipated at that time, a considerable loss from the point of view of CORE planning and job creation for the region. It is important to note that CORE was the most comprehensive land use review exercise ever undertaken in the Kootenays by the Province, involving all local stakeholders and levels of government. JGR was the only site-specific land use issue reviewed by and decided under CORE, and job generation was an important consideration, as well as the prior industrial use of the land. Ski areas provide many forms of employment to unemployed locals. It is very strange that Dr. Shaffer does not seem to include in his considerations the opportunity cost (lost

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opportunity) that needs to be added to the cost of unemployment in the region. Dr. Shaffer assumes that there cannot be any advancement in skills and employment for the locals and does not take into account both the unemployment cost to government and the social cost to communities and families. Had Dr. Shaffer participated to the East Kootenay CORE public meetings, he would have learned what the human and social cost, as well as the economic disadvantage of lack of employment opportunities, and had he visited Kicking Horse Mountain Resort or Panorama, and spoken to their employees, he would have taken in consideration the benefits that these projects provide (despite the much more challenging economic conditions that the regional ski resorts have to face).

7.0 Government Involvement & Benefits

The previous Premier of B.C., Gordon Campbell, had declared that by 2015 the Province should double its skier visits and surpass those of Colorado. In the latest five-year strategy for tourism development in British Columbia, Gaining the Edge, Premier Christy Clark is quoted as saying, “British Columbia will become North America’s No. 1 ski destination.”35 It is a laudable and achievable long term goal, but major and timely new ski infrastructure development providing access to some of our best and most competitive mountains will be required before B.C. can surpass Colorado as North America’s leading ski destination. Only JGR at the moment is capable and ready to contribute to the provincial objectives. In the most recent development of the ongoing process leading to the start of the JGR project, the provincial government finally responded to the request of the Regional District of East Kootenay and created the Jumbo Glacier Mountain Resort Municipality. Its first appointed Mayor and Councilors then entered into contract with the Village of Radium Hot Springs for municipal services. This is a very efficient and economical way to start a project, and compares well with any other mountain resort development ever planned in B.C., including Whistler. Since 1970’s, the Province has provided aid and investment to Panorama, Whistler and other mountain resorts, culminating with the $650 road improvements for Whistler in 2008 and 2009. JGR was not provided any support or aid and continues to be disadvantaged, from the hardship of the approval process to the lack of infrastructure investments. However, Dr. Shaffer claims that this project is a threat to taxpayers’ money or will cost taxpayers’ money, with no evidence. The Provincial Government is committed to improving the lives of the First Nations, and to improving their participation in a growing economy. In order to achieve success, the Province must work in partnership with the First Nations to identify shared goals, strategic outcomes, and progress.                                                                                                                35 Ministry of Tourism Jobs and Innovation, (2011)

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Certain government policies, such as the Economic Development Plan for B.C. from Aboriginal Affairs and Northern Development, directly support the idea of major sustainable development, “access to sufficient land and resources is needed to support economic development and self-sufficiency.”36 First Nations are increasing their interest and involvement in the economic development and sustainability of the Province. They represent an ideal partnership for Government and developers alike: “joint ventures between Aboriginal and non-Aboriginal businesses are another way to increase access to lands and resources and provide opportunities for economic development.”37 JGR has achieved a model Impact Management and Benefits Agreement with the local Shuswap Indian Band, and is well positioned to achieve the goals of the Provincial job creation policies that will benefit the First Nations. The underdeveloped Canadian tourism and ski industries seem to have become more important in the Provincial agenda, with the revamping of the Mountain Resort Associations Act. The Act recognizes that “vast mountain ranges and glaciers, abundant snowfall and accessibility to key markets have combined to give British Columbia the essential makings of a strong ski industry. Already the industry employs many British Columbians, and significant growth is expected into the future.”38 The Act’s purpose is to promote, facilitate and encourage the development and operation of resort development, understanding the potential for economic benefits and growth.   The Province of B.C. has been promoting ski hill development under the Commercial Alpine Ski Policy for two decades, and recently it revamped and expanded the policy under the name All Seasons Resort Policy. This policy is directly focused on major resort development that lies either partly or entirely on Crown Land. The following outline the objectives and strategies of the policy: Objectives:

• “Maintain and enhance British Columbia's competitive edge in resort development and expansion.

• Provide enhanced business certainty and security. • Help promote new investment, economic development and job creation. • Minimize conflict between competing land uses. • Promote sustainable land use that commits to social responsibility and

environmental stewardship. • Ensure an efficient and coordinated approval process with clear, well-defined and

timely decision making. • Flexible to meet changing market and business conditions in a competitive

international marketplace.                                                                                                                36 Aboriginal Affairs and Northern Development Canada. (2010). 37 Ibid. 38 Resort Association Act.(2013).

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• Promote diversification and four-season use. Strategies:

• Provision of long-term and secure tenures. • Sale of Crown land for intensively developed sites, • Strategic use of Controlled Recreation Areas. • Investment incentives. • Establish specific milestones and target dates (from concept to construction). • Establish a decision point or 'approval-in-principle' at an early stage of the review

process. • Require inter-agency, First Nation, public and stakeholder participation at the

initial stage of the proposal process. • Coordinate provincial and local government approval processes.39

The Province of British Columbia and the East Kooteany region have something to learn from the neighbor to the East, Alberta. This province, which shares the Canadian Rockies with B.C., has utilized to considerable advantage the tourism opportunity of the National Parks, mainly Banff and Jasper. Its Tourism Destination Region reports that 3.21 million persons visiting the region produced approximately $429 million in total taxation revenue accrued to all three levels of Government in 2010. This included $264 million to the Federal Government, $121 million to the Provincial Government, and $44 million to Local Governments province-wide.40

8.0 Displacement of Heli-Ski

Heli-skiing offers skiers the ability to access quickly and in relative comfort remote areas that are only accessible by way of a helicopter flight. The attraction of this sport is the ability to ski on untracked snow, and fresh powder snow. The conditions that heli-skiing offers are impossible to replicate at North American ski hills and mountain resorts. In particular, powder snow and long untouched descents on the best slopes for good winter climate are very difficult to find starting from available ski lifts, even with long hikes. The interior mountains of B.C. are perfect for heli-skiing: “British Columbia, Canada, is certainly the capital of the heli-skiing world.”41 Following its inception more than forty years ago in the Rocky Mountains of B.C., there are now more than twenty heli-skiing operations scattered throughout the province that attract a worldwide clientele. The Rocky Mountains, which comprise the Purcell Mountains, Selkirk, Monashee and Cariboo Mountains, are world famous with reported annual snowfalls of 12-15 meters of dry champagne powder.42 These conditions are ideal for skiing; unfortunately conditions                                                                                                                39 Land Water British Columbia Inc. (LWBC). (2005). 40 Alberta Tourism Parks and Recreation. (2010). 41 Powder Hounds: Heli-Skiing BC. 42 Ibid.

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like this are not to be found on the ski hills and resorts that are frequented by the general public. Areas that are truly comparable or superior to the best of the Alps accessed by lifts (for example in the arc of mountains from La Grave to Plateau Rosa, and many others) in North America have only been made accessible by helicopter. However, access by helicopter is very limited, very expensive, not pleasing to everyone and certainly less sustainable than access by lifts, especially when electrically driven with energy created with renewable and clean sources, such as hydroelectric power generation instead of jet fuel. JGR will grant access to these pristine, unmatched conditions to a much larger group. “Powder snow is the holy-grail for skiers, and now more than ever, people are leaving the boundaries of official ski areas and entering backcountry terrain to find it…. ‘If you can't get fresh snow at a resort, the message is: step out of bounds to get it,’ ” says John Irvine, director of sports marketing for Mountain Equipment Co-op.43 But this is not easy and often dangerous for the average tourist.

The small heli-ski operation currently departing from Panorama will be advantaged by the introduction of a larger clientele and the ability to start operating from the center of an expanded territory and a larger bed base. The combination of JGR, offering skiing also to the members of groups that prefer to avoid the helicopter in their vacations, and of the heli-skiing experience for the more adventurous people, will expand rather than contract the business of the heli-ski company. In 2004 the Province of B.C. commissioned an independent report by Sierra Systems, which confirmed that the fears that the JGR project would damage the heli-ski operations currently based at Panorama are unfounded.

9.0 Land & Resource Use – Sustainability

JGR is the first mountain resort project to be designed and proposed according to modern environmental principles and to be constructed on the basis of an approved Environmental Certificate, obtained following studies, assessments and exceptional scrutiny for nine years. In terms of environmental impact and sustainability, JGR was from the conceptual stage the most advanced mountain resort concept because of location, compact size, large ski area without snowmaking, and small environmental footprint confirmed by the review under the Environmental Assessment Act. Not only it will have an insignificant impact on wildlife and on natural resources, and will re-use a previously industrially exploited area and existing road alignments for access, but most importantly, it uses natural snow to provide for all the recreation activity because of its location at elevations that are beyond reach of global warming temperature rise. The growing necessity and cost of snowmaking at all other ski areas, which is truly the biggest issue of sustainability for ski resorts in North America, makes the difference of design concept for this project striking on this point alone.

                                                                                                               43 Mitsui, Evan. (2013).

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The next item in terms of importance for sustainability is the relationship of resort footprint to ski area. JGR will occupy approximately 115 hectares (285 acres) in proportion to a skiable area (the CRA- Controlled Recreation Area) that will exceed 5,900 hectares (14,500 acres) in natural snow, with a 2% ratio of development area versus ski area size. On the other extreme is Whistler, which has received important environmental praises, but has a municipal boundary (for the Whistler Mountain Resort Municipality) of approximately 16,530 hectares (40,800 acres), versus a skiable area (CRA) of approximately 6,000 hectares (15,000 acres). Designing ski areas for the future where the skiing is done on snow over glaciers or moraines and exclusively on natural snow at the right elevations, well above the rain line of the future, means working with nature rather than against nature. Working with nature not only makes a project more sustainable, it makes it more economically viable. This kind of ski area reduces to insignificance the need to modify the terrain for ski runs, therefore reducing or eliminating tree cutting (which in fact has already been done where desirable by the heli-ski company to expand heli-skiers’ use of the runs in the skiable terrain of Jumbo Valley), the need to control erosion and earth movements, and the need to install and maintain an infrastructure for snowmaking in order to secure a base for the snow (or to provide for snow when it is lacking). These fundamental design measures assist also in preserving water quality and protecting both visual values and the ecology of a valley in general. In addition, designing a project where the authority having jurisdiction can enforce the right design guidelines, as at JGR, will allow it to implement design with the least disturbance of the natural landscape, xeriscaping and protecting local vegetation and riparian areas, and to further ensure the sustainability of the project. Finally, and most importantly, there is a general consensus that global warming is a threat. For the existing ski areas in North America, where even a minor change of snow year has catastrophic consequences, placing a new ski area above the highest conceivable snow line is a most significant factor in terms of the economic value of the project in the future and of its sustainability.

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10.0 Jumbo Glacier Resort

10.1 The Snow

All experts consider snow a critical factor for the success of ski resorts, especially in terms of certainty, of availability of a good base for a longer season and of a guaranteed white Christmas. USA statistics show that in a bad snow year the American ski areas will see a reduction of skier visits of up to 15%. Almost all ski areas in North America, and particularly in B.C., either have or need snowmaking for a variety of climatic reasons. In Western Canada, from Whistler to Lake Louise major snow making facilities have been installed to alleviate constant snow problems. At the relatively low elevations of many ski areas in North America, such as Whistler, Revelstoke or Mont Tremblant, temperature rises during the warm cycles and causes rain. At low elevations rain can be present at the worst possible time in the winter season: Christmas, New Year or at major events. The 2010 Winter Olympics in B.C. showed unfavorable scenes of rain over snow, at Cypress Mountain and at Whistler. On the other hand, colder places like

Figure 7: Controlled Resort Area of Jumbo (CRA) Approx. 14,500 acres  

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Sunshine and Lake Louise in Alberta, or even Panorama in B.C., have little snow and wind near their mountaintops and cannot accumulate any significant snow, only ice. Instead, due to its exposure and elevation, JGR has the perfect climate and snow. Temperatures and wind are more moderate and constant than in the Canadian Rockies to the east, allowing for snow accumulation and no rain in winter for more enjoyable skiing conditions. Glacier Dome, Jumbo Glacier, Commander Glacier and Farnham Glacier enjoy an abundance of powder snow from the top of the mountain to the valley base in winter. The valley base at 1,700 meters (more than 500 meters above the snow line in winter) guarantees not only powder snow in abundance without snowmaking, but also a white Christmas. JGR will have the longest winter season, from end of October to end of May, and the biggest summer skiing season, from June to October. JGR is far superior to any ski area in North America, and will have many of the best ski runs in the world. From the point of view of elevations, snow, and ski run quality and reliability JGR has no equal in North America. 11.2 The Ski Runs

JGR has a large Controlled Recreation Area (approximately 14,500 acres) that covers an area larger than the four famous Colorado ski areas of Aspen, Aspen Highlands, Snowmass and Beaver Creek combined. In this huge skiable territory, JGR will utilize a large number of popular intermediate ski runs currently used by the heli-ski company with great success. JGR alone compares with Whistler and Blackcomb combined. The skiable territory not only provides easy access to ski runs for skiers of all capabilities, but it also offers a huge vertical drop of uninterrupted intermediate slopes covered in deep powder snow from top to bottom that will be unmatched in the world. This is also because the ski runs from Glacier Dome, and particularly from Farnham Glacier and Commander Glacier, follow a slope along a relatively steady incline and not a flat collection area on a glacier followed by a steep icefall and then again flat terrain like in most other glaciers, or mountains shaped by glaciers. None of the ski runs with big vertical drops of other ski areas have this consistency of snow and slope. 11.3 The Sightseeing Experience

JGR combines ultimate skiing with the ultimate sightseeing experience. In the beautiful National Parks of the Canadian Rocky Mountains nearby, the mountain experience for the urban tourists who may not be inclined to go for long and challenging hikes is very limited. The huge main valleys do not show the wonders that lie beyond, from the mountaintops and their glaciers to the mysterious beauty of the inner valleys of the “backcountry,” on the other side. In the National Parks there are three sight seeing lifts, at Banff, Lake Louise, and Jasper, but each one of them reaches a viewpoint that is below the crest of the mountain range

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that limits the valley, and consequently the view is only of the valley below, beautiful but not as beautiful as when a 360 degrees of mountains and glaciers is offered. The only other alternative is the approach by bus to the base of the Columbia Icefields, seeing only the retreating tongue of the glacier and its moraine without any view of the top and of the other side of the mountains. This is not like what one experiences at the Jungfraujoch, at Klein Matterhorn or at the Aiguille du Midi. At JGR there would be a sightseeing experience rivalling even the best in the Alps. From the view point of Glacier Dome not only one will see the other side of the mountains, glaciers and a 360 degrees view of immense mountain ranges, but the tourist will see from the best vantage point Jumbo Glacier calving into the beautiful Lake of the Hanging Glacier 1,000 meters below. Alternatively, the tourist will be able to fly by gondola from the peak of Jumbo Mountain to the peak of The Cleaver, an experience comparable to the Vallee’ Blanche near the Mont Blanc, and absolutely unparalleled in North America. Each of these two sightseeing experiences can be rated as best in the world, as far as mountain experiences will go. It is easy to verify this claim even before the construction of the lifts, with a short helicopter flight. 11.4 The “Backcountry” Valley Experience

The Post Hotel at Lake Louise and its success, despite the fact that Lake Louise is not near it, show the hunger for intimate mountain experience in North America. But the Valley of the Bow River, where the hotel is located, is huge and lacking intimacy, and the Post Hotel enjoys a tiny corner in a huge valley. A similar comment can be made of popular Teton Village, near Jackson Hole, Wyoming, beautiful setting, but also lost in a huge valley floor. The resort village location of JGR is unique in North America because it is in a true inner valley, in a “backcountry” location. JGR is the first and only of this kind in North America, even better than Zermatt in Switzerland. 11.5 The Access and Market Area

JGR has easy access from the Columbia Valley, a Valley with some 60,000 residents and an estimated 30,000 beds of tourism accommodation and vacation homes, mostly within an hour or up to two hours’ driving distance. It also has easy access from Banff and its national parks clientele, approximately two hours away. Banff has approximately 35,000 beds and 4 million visitors (and over 7.5 million visitor/days) per year. Calgary and Edmonton are the major populations centers nearby, with a combined population of over two million people and growing (it is estimated that they will grow by 1.5 million people in the next 15 years). These major urban centers would appear distant by old urban ski hill standards, based on the notion of attracting a weekend clientele within a two hours commuting distance, but they are not so by Western Canadian habits. Panorama, the existing ski area near JGR is very popular both with people from the Calgary area and from the Edmonton area. Buses to Panorama for weekenders are

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regularly seen even coming from Edmonton. However, the most important fact is that the JGR project is designed to attract the destination clientele, for whom the drive through the National Parks from Calgary airport will be a pleasure, not a tiring obligation, and who will not be coming just for a day or for a weekend.

JGR can be accessed from four existing airports. Invermere, an access to JGR for small planes, and Fairmont, capable of Boeing 737 class jets, are approximately an hour away. Cranbrook International Airport is at approximately 2 hours and fifteen minutes’ to 2 and a half hours driving distance and Calgary International Airport is approximately four hours away. Calgary is the airport favored by the heli-skiers that come from all over the world to ski by helicopter from Panorama and from Bugaboo Lodge, both accessed through Banff and the Columbia Valley, just like JGR. It is an incredibly easy, convenient and well organized access system, well prepared for the world clientele of JGR, easier and more convenient than the access to the Colorado destinations from Denver, and comparable with the access to Whistler from Seattle or even with the access through the Vancouver downtown traffic when coming from the Vancouver International Airport. Exiting from the above noted airports to the highways leading to JGR does not require crossing any urban centre, and is on exceptionally well maintained roadways. 11.6 JGR Will Be Poaching Existing Markets or Expanding the Market?

A fundamental aspect of reality is that JGR introduces to B.C. a different market level. Experience shows that the skier market in North America is supply driven, and a larger and better ski area choice expands the market. This was proven when Blackcomb was permitted to open next to Whistler, and when Kicking Horse Mountain Resort was permitted to open in the proximity of Panorama. New and better facilities attract more people even to existing facilities. By design, sustainability and location JGR is, in every aspect, the ultimate ski area and mountain resort for North America and no other mountain resort can compare with it. This is the fundamental reason supporting its feasibility and the case for the contribution of the JGR project to market growth.

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12.0 Bibliography Aboriginal Affairs and Northern Development Canada. (2010). Fact sheet: Economic Development In British Columbia. Retrieved from: www.aandc-aadnc.gc.ca Alberta Tourism Parks and Recreation. (2010). The Economic Impact of Tourism in The Canadian Rockies Tourism Destination Region, 2010. Retrieved from: http://tpr.alberta.ca/tourism/research/ecoimpacts.aspx British Columbia. Canada West Ski Areas Association (CWSAA). (2011) The Value of Mountain Resorts to the British Columbia Economy. Retrieved from: http://www.destinationbc.ca/getattachment/Research/Research-by-Activity/Land-based/Value_of_Mountain_Resort_Properties_Phase_One_June-2012.pdf.aspx British Columbia: Ministry Of Community Services. A Guide to British Columbia’s Mountain Resort Associations Act. (2004). British Columbia: Ministry of Jobs, Tourism and Innovation. (2012). Revised 2011/12 – 2013/14 SERVICE PLAN. Retrieved from: http://www.bcbudget.gov.bc.ca/2011/sp/pdf/ministry/jti.pdf British Columbia. Newsroom. (2012). Tourism BC launches 2012-13 Ski Marketing Campaign. Retrieved from: http://www.newsroom.gov.bc.ca/2012/10/tourism-bc-launches-2012-13-ski-marketing-campaign.html Canadian Ski Council. (2010).CANADIAN SKI COUNCIL NATIONAL SKIER AND RIDER DEVELOPMENT: 2009/2010 Operations Report. Retrieved from: http://www.skicanada.org/_assets/files/09-10%20CSC%20Operations%20Report%20SM%202(3).pdf Canadian Tourism Commission. (2012). Canada’s Tourism Industry. Retrieved from: http://encorporate.canada.travel/sites/default/files/pdf/Mediakit/tourism_industry_fact_sheet_apr._23_2012_-_en.pdf Capgemini Worldwide. (2011) Asia-Pacific Wealth Report 2011. Retrieved from: http://www.capgemini.com/insights-and-resources/by-publication/asia-pacific-wealth-report-2011-english/ Ecosign (1998) Retrieved from: http://www.ecosign.com/index.htm Explore Rockies. (2013). Banff Sulphur Mountain Employee FAQ. http://www.explorerockies.com/banff-gondola/employment.aspx#busy Explore Rockies. (2013). Columbia Icefields Employment. Retrieved from: http://www.explorerockies.com/columbia-icefield/employment.aspx

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