Cape Breton Island Airport Proposal

Transcription

Cape Breton Island
Airport Proposal
Cabot Trail, North East Margaree,
Inverness County, Nova Scotia
December 15, 2014
Submitted to:
Nova Scotia Department of Municipal
Affairs
Submitted by:
The Municipality of the County of
Inverness
Joe O’Connor, CAO
The Municipality of the County of Inverness
375 Main Street, Port Hood, NS B0E 2W0
Ph: (902) 787-3500
Email: [email protected]
Website: www.invernesscounty.ca
TABLE OF CONTENTS
1.0 Executive Summary………………………………………………………………………………………………………… Pg. 3
2.0 Introduction …………………………………………………………………………………………………………………… Pg. 4
3.0 Proposal…………………………………………………………………………………………………………………………… Pg. 6
4.0 Economy at a Glance………………………………………………………………………………………………………. Pg. 7
5.0 Strategic Alignment…………………………………………………………………………………………………………. Pg. 8
6.0 Market Opportunity……………………………………………………………………………………………………….. Pg. 12
7.0 Best Practices / Case Studies………………………………………………………………………………………….. Pg. 17
8.0 Expanded Opportunities & Alternative Uses…………………………………………………………………… Pg. 20
9.0 Airfield Technical Feasibility Study………………………………………………………………………………….. Pg. 23
10.0 Economic Impact…………………………………………………………………………………………………………….. Pg. 24
11.0 Cape Breton Airport Business Concept………………………………………………………………………….. Pg. 29
12.0 Financials……………..………………………………………………………………………………………………………. Pg. 34
13.0 Next Steps/Project Time Line...……………………………………………………………………………………… Pg. 37
APPENDICES
Appendix A – Cape Breton/Airport Map
Appendix B - General Aviation Demand Forecast Assumptions
Appendix C – Charter Flight Demand Forecast Assumptions
Appendix D – Airport Fees & Refueling Forecast Assumptions
Appendix E – Cape Breton Airport, Margaree Airport Expansion Technical Feasibility Report
Appendix F – WPS Correspondence re: Airport Alignment
Appendix G – WPS Pre-design Work Proposal
Appendix H – Letters of Support:
Halifax Stanfield International Airport Authority
Destination Cape Breton Association
Nova Scotia Transportation & Infrastructure Renewal
The Municipality of the County of Richmond
The Cape Breton Island Partnership
The Cape Breton Prosperity Framework
Chair Adam Rogers, Strait Area Chamber of Commerce
CAPE BRETON ISLAND AIRPORT PROPOSAL – November 2014
1.0 EXECUTIVE SUMMARY
Cape Breton Island’s reputation as a world class destination is growing. With a 5% increase in room
nights sold in 2013 vs. 2012, it is bucking the trend of a ten year decline for the province as a whole.
Tourism is a vital part of Cape Breton Island’s economic future.
Worldwide growth in the tourism sector is being fuelled by rapid expansion in air travel, and
competition is fierce. Destinations which offer the most convenient options for access from major
population centres will enjoy the most success.
The Municipality of the County of Inverness (Inverness Municipality) is proposing to enhance an airstrip
which it owns and operates at Margaree, to create the ‘Cape Breton Island Airport’ (CBIA). Located
adjacent to the world renowned Cabot Trail, the CBIA will help Cape Breton be more competitive. It
supports the collective interest of all Cape Breton municipalities to maximize the economic impact of
Cape Breton Island’s tourism opportunity.
Cape Breton Island has already proven that the right investment can attract new incremental business to
the province. Inverness County is a case in point, where an exciting new development has attracted 39%
of its visitation from the US and 25% from Ontario. Most impressive is that 90% of the American
visitors, and 50% of the Ontarian visitors were first time visitors to Nova Scotia, with the majority
arriving by air. This mix of tourism business, and in particular, the attraction of new international
visitors, creates sustainable jobs and healthier communities.
While new investment has been proven to attract new visitors, the reverse is also true. A recent report
by the Tourism Industry Association of Canada ‘Gateway to Growth – Creating Investment Opportunity
in the Canadian Hotel Industry notes that growth in international visitors is essential to attracting new
investment to Canada’s tourism sector.
As global air travel expands, Canada’s tourism opportunity will increasingly come from travelers who fly
here. Improved direct access to Margaree will accommodate increasing numbers of visitors drawn to
world class golf, fishing, touring and Celtic music. Their expenditures will drive economic growth, and
the benefits will spread across the Island.
The natural and cultural advantages of the Cabot Trail region – warm sandy beaches, world class touring,
authentic culture, spectacular coastline – combined with direct air access and available labour force, will
position the entire area for new investment. The airport will become a critical tool for investment
promotion and business attraction – in the tourism sector and beyond.
The development of CBIA constitutes a strong step forward in addressing a critical challenge laid out in
the recent Ivany Report (The OneNS “Now or Never” Report) of the need to keep pace with our
competitive environment. The report notes the need for greatly improved performance in the areas of
productivity, trade, innovation and value added production, as these will be the drivers for renewal and
expansion across all industry sectors and business types, whether small, medium or large. The noted
performance drivers are particularly important in the traditional rural industries – fisheries, agriculture,
forestry and tourism – where too many enterprises have not kept pace with their competitive
environments.
2
The most significant impediment for Northern Cape Breton in keeping pace with the competitive
environment is the lack of convenient air access. The proposed CBIA responds to the need for
convenient access, and for new economic prospects.
The CBI Airport aligns seamlessly with Destination Cape Breton, municipal, provincial, and federal
tourism strategies. The iconic Cape Breton tourism reputation coupled with new US and Canadian
markets drawn by world class golf builds a solid business case for the investment of the CBI Airport.
The CBIA can be operational in 2016 with an approximate $9.4 million investment for runway expansion,
operational infrastructure and a modest terminal structure. Annual operating expenses (including
management, fixed and variable expenses and capital reserve) are estimated to be $130,000 to start,
with operational revenues in the same range and growing to $190,000 in 5-year span. The business case
is built upon a fee for service model that will contribute to 100% of operational costs.
Inverness Municipality is seeking a partnership with provincial and federal departments to financially
contribute to the capital investment.
Inverness County and Cape Breton Island will witness immediate and long-term economic and social
benefits of the airport service. It is estimated that in a first year of operation, the airport would
facilitate travel by 6,000 incremental visitors, generating $5.26 million direct revenues and an
estimated 65 new direct jobs and another 27 jobs through spin-off employment impacts. By year 5,
visitors would increase to 9000, generating $7.9 million in incremental revenue and estimated new
direct jobs number grows to 97 and jobs through spin-off employment would grow to 40.1
The Cape Breton Island Airport will deliver a strong return on investment, and will help Cape Breton
attract other new tourism developments and new businesses. The CBIA supports the collective interest
of all Cape Breton municipalities and First Nations for economic growth resulting in broad public
benefits, healthier tax bases and stronger communities.
1
Potential Impacts of the Cape Breton Island Airport, Group ATN Consulting, 2014
3
2.0
INTRODUCTION
Inverness Municipality, located on the western side of Cape Breton, is moving forward on the concept of
expanding an existing airstrip and repositioning the proposed airstrip as a regional airport providing
domestic charter and scheduled air service to Inverness County and Cape Breton.
This document outlines the business concept and proposed funding partnership among three levels of
government to realize the concept plan. As an appendix to this document a Technical Feasibility Report
was conducted of the proposed airstrip by Genivar Inc. in March of 2012 forming the basis of the
business concept. In addition, Michele McKenzie of McKenzie Strategies has contributed to the tourism
market opportunity and strategic alignment sections and Thomas McGuire of Group ATN Consulting Inc.
has conducted further economic impact analysis, incorporated into this document.
Inverness County is comprised of the entire western coastline of Cape Breton and reaches inland to
partially border on the Bras d’Or Lakes. The county stretches from the Strait of Canso, 245 km along the
windings of the coast, northeastwardly, to Cheticamp, Pleasant Bay and Meat Cove and in width 78 km
from Port Hood to Marble Mountain. Inverness County has a population of 18,000 (2011 Census) of
which 19 percent are bilingual, speaking both English and French. The Municipality of the County of
Inverness administration office is based in Port Hood. Inverness Municipality provides services under the
five departments - Administration, Finance & Taxation, Public Works, Tourism & Recreation and
Community Development. See our website at www.invernesscounty.ca
Inverness is a village in Inverness County, Cape Breton and located on the west coast of Cape Breton
Island fronting a three kilometer sandy beach on the Gulf of St. Lawrence. The village is three and a half
kilometers in length and is approximately two and a half kilometers in width. The population of
Inverness is 2,186 (2011 Census). The village serves as a regional service centre and has over 35 main
street businesses. Found central in the community is a regional hospital, a raceway, a visitor
information center, several accommodations, restaurants and pubs. The Inverness Raceway was
established in 1926, and harness races are held twice weekly between May and October.
4
Inverness sits astride a small coal seam which was mined from the late 19th century to the mid-late 20th
century. Several more mines opened in and near Inverness during the early 20th century, but many
closed following World War II with the last one closing in the early 1990s following a fire. The
community was established in 1904. It experienced economic hardship since large scale industrial coal
mining ended; the local economy is now based mainly on fishing and tourism.
Cabot Links is a 200-acre, 18 hole, Par 70 ocean-side Links golf course developed on the site of the
former coal mine in Inverness, opened in 2012. This is Canada’s only authentic links, where the holes
‘link’ the village of Inverness to the sea. Five of Cabot Links’ holes play directly adjacent to the beach and
every hole offers an ocean view. The facility is critically acclaimed by those who know golf architecture
and the sport. Thousands of golfers are coming here from all corners of the world to play what has
already been christened Canada’s True Links2.
Cabot Links is also a resort and features a 48-unit luxury boutique hotel with all rooms having an ocean
view. The Cabot Links Resort has redefined tourism opportunities in Inverness County and Cape Breton.
The resort has attracted golfers and high-yield travelers primarily from Ontario and the United States.
Golf Digest lists Cabot Links in the Top 10 golf courses in Canada and Cabot Links #42 in the world. There
were an approximate 5,000 rooms sold in 2013. See website www.cabotlinks.com
The Cabot Links’ season is longer than other nearby golf courses. It’s goal is to be opened from mid-April
through to mid-November; no doubt catering to the Links’ lovers who savor a truly rugged and
challenging round of play. In keeping with the traditions of Links courses, there are no power carts at the
Cabot Links.
Cabot Links’ owners maintained that if 20,000 rounds of golf were played on their Links in 2012, they
would begin construction of a second phase seaside course at nearby Broad Cove. A few kilometers
away is the location of the new Cabot Cliffs development, a second links course and high-end lodging
(50 rooms) is due to open in 2015. With Cabot Links almost touching the edges of Cabot Cliffs, the twin
developments have already captivated the golf world even before the second course is ready.
The Margarees is a collection of several rural communities located in Inverness County on the Cabot
Trail, on the western side of Cape Breton Island. North East Margaree has an airstrip that was developed
in the early 1960’s. The Municipality of the County of Inverness acquired this airstrip at about the same
time. Over this period of time and currently the airstrip is used by private planes and flying clubs however the facility is underutilized.
The Margarees is an active farming-fishing community. Margaree citizens also work in forestry,
lumbering, cultural industries or provide business services in the network of Margaree villages.
Margaree is known for its Celtic music, authentic cultural events, scenery, superb crafters, splendid
outdoor activities (hiking, skiing, snowmobiling), and fly fishing for salmon or trout on the Margaree
River. Margaree is also noted for the Margaree Salmon Museum and an historic Fish Hatchery (the
oldest in Nova Scotia).
North East Margaree is 25 minutes from Inverness, a community service centre, and a 30 minute drive
in the opposite direction is Cheticamp also considered a regional service centre with a population base
of 3,500 (2011 Census).
2
Final Report: Economic Impact of Golf on Cape Breton for Golf Cape Breton, Solutions Inc. (2012)
5
3.0
PROPOSAL
Inverness Municipality is pursuing partnerships to upgrade an existing Municipal Airport central to Cape
Breton’s finest attractions. The expansion is about bringing new incremental business to Cape Breton
Island – business we are not attracting with our current infrastructure. The focus of the airport will be
tourism.
We know that tourism needs to be a vital part of Cape Breton’s economic future. We also know that our
growth will come from air travelers – not road travelers as we have seen in the past. Rapid growth of air
travel is a world-wide phenomenon, and this trend will continue.
We know that the high value visitor, which Cape Breton has the potential to attract in much higher
numbers, demands convenient and direct access to destinations. Our objective is to provide visitors
direct access to the Cabot Trail and world class tourism offerings of Western and Northern Cape Breton.
Currently Inverness Municipality owns and operates an airstrip in Margaree, central to Northern Cape
Breton, adjacent to the world renowned Cabot Trail. The airstrip is within a 30 minute drive of Cabot
Links Golf Course, and other major tourism attractions of Inverness, Cheticamp, Baddeck and Cape
Breton Highlands National Park. The development and expansion of the Margaree airstrip will, for the
rest of this document, be referred to as the Cape Breton Island Airport (CBIA). Research is being done to
determine the appropriate name sake of the airport.
The plan is to upgrade and lengthen the runway and reposition it as a regional airport, to allow for more
flights – and more visitors to access Cape Breton Island. We are seeking new, incremental domestic
charter and scheduled air service that would otherwise not come to Inverness County and Cape Breton.
It is the right infrastructure to grow tourism in Inverness County and for all of Cape Breton Island.
Inverness Municipality is responding to the opportunity presented. The lack of ease of access to the
Cape Breton Highlands is a major impediment to the full development of tourism for Inverness County
and by extension for Cape Breton. Short excursions (2 to 4 days) are discouraged by long drives from
Halifax and Sydney airport. Presently, the nearest private airport is the Port Hawkesbury Airport,
approximately 1 hour and 15 minutes (95 kms) drive away. There has been no desire or business case
for a commercial scheduled aviation operation at the Port Hawkesbury location.
A quality airport facility and fly-in service would raise the level of product sophistication for Cape Breton
as an in-demand travel destination. The facility would improve the time and access challenges
associated with travel from both Halifax and Sydney to this area of Nova Scotia. By extension, for major
markets to travel to Cape Breton Island and the associated traffic, there is potential impact of reducing
the effective cost of travel to the destination.
The business case is built on tourist demand. There is a huge population within a three hour flight of the
airport – this is our target. As scheduled service comes on stream, our residents will also benefit from
the increased access. The development of the airport will raise individuals’ travel frequency to Cape
Breton and by extension, their potential for and interest in seasonal property ownership/occupancy.
6
4.0
THE ECONOMY AT A GLANCE
4.1
Work Force
Natural resources and tourism form the basis of the Inverness County economy. Inverness County has a
labour market of approximately 8,800 workers with a significant concentration of employment in natural
resources and tourism-related industries.
Inverness County has a significant tourism related workforce. There are 740 persons working in tourismrelated industries across Inverness County including entertainment, recreation, accommodation and
food services. Because of the tourism sector, there are more than twice as many people employed in
accommodation services in Inverness County compared to the national labour market. There are 13
hotels and motels and over 20 bed & breakfast or cottage providers in the county.3
4.2
Employment
Inverness County has an employment rate of 43.8% - well below the national level of 61 percent –
indicating potential for considerable workforce expansion among the current adult population. The
unemployment rate in 2013 was 16.3%. Over the period of 2006-2011, the number of Inverness County
businesses has declined from 1,399 to 999 (29%).4
4.3
Population Decline & Projections
The population base of Atlantic Canada is declining and aging. Since 1971, Inverness County and Cape
Breton saw a persistent trend of net out-migration as skilled workers and better educated young people
were drawn away to attractive career opportunities in Canada. Over a ten year period (2001 – 2011) the
region has experienced a net population decline. Inverness County, excluding the Town of Port
Hawkesbury, has a population of 13,513, which is 10.0% lower than in 2001.5
In terms of overall demographic size, Cape Breton Island is projected to shrink and Inverness County
would have a comparable experience barring major events such as the opening of a proposed container
terminal and the rapid expansion and creation of firms that find a new market niche such as the Cabot
Links golf resort.
4.4
Inverness
The community of Inverness is showing better trends even before the opening of Cabot Links. Inverness
had a population of 1,464 in 2006. By 2011, the community’s population was 1,387, a decrease of 5.3%.
Immigrants view Inverness as a desirable place to live. The town’s proportion of immigration citizenry is
comparable to Nova Scotia total of 5%. Between 1996 and 2006 employment rates in Inverness
increased. The cost of living in Inverness is affected by the relatively recent 111.3% increase in the
market value of local housing. Expectations for Inverness’s demographics are growth and expansion.6
3
Cape Breton Island – Mulgrave Workforce Advantage, 2014
Cape Breton Island – Mulgrave Business Establishment Review, 2014
5
Nova Scotia Community Counts website
6
Economic Impact of Golf on Cape Breton for Golf Cape Breton, Solutions Inc, 2012
4
7
5.0
STRATEGIC ALIGNMENT
The plan for CBIA is aligned with other important strategies to grow the economy:
5.1
2014 Inverness County Strategic Planning
Inverness Municipality has entered into internal and external planning initiatives focused on
determining strengths and prioritization of efforts to ensure healthy and growing communities. Included
are:
 Integrated Community Sustainability Plan - ICSP (2010)
 Community Development Strategic Plan (Jan 2014)
 Investment & Business Attraction Readiness Plan (Partnering with Cape Breton Partnership,
Nova Scotia Business Inc. and Enterprise Cape Breton ) (Mar 2014)
 Destination Inverness County Tourism Plan (Apr 2014)
The Inverness Municipality has recently embarked on the development of a Prosperity and Repopulation
strategy. Preliminary planning has focused on the importance of residential and business attraction and
retention strategies to stabilize and repopulate our communities. The Cabot Links Resort combined with
the Cape Breton Island Airport concept supports the growth of residential and business attraction to the
Inverness region by:
1.
2.
3.
4.
Creating employment for local residents;
Attracting newcomers to come and live and work here;
Luring high-yield visitors into the region to stay and spend on local services; and
Providing new opportunities for business growth and new businesses.
The CBI airport opens up the region for further investment and business growth opportunities. The
airport is 30 minutes from several key areas well suited for coastal, high end tourism ventures in areas
such as Cheticamp, West Mabou, Collindale Road and Margaree (salmon fishing lodge).
5.2
2014 Destination Inverness County Tourism Plan
The Destination Inverness County Tourism Plan, completed in spring 2014, calls for the branding of
Inverness County as ‘Canada’s Musical Coast’. The primary message is that Inverness County offers
coastal/musical experiences unlike anywhere else in Canada. The secondary message is that Inverness
County offers an abundance of quality adventure, culture/heritage, culinary and retail experiences. This
plan presents a coherent framework to build awareness of Inverness County as a destination; however,
access issues must be addressed if the plan is to be successful in helping to drive incremental business.
Destination Inverness County Tourism Plan addresses the collection of primary travel motivators which
emerge from an extensive research undertaken with specific regard to consumers’ potential interest in
travel to Atlantic Canada. These Primary Travel Motivators (noted on the following page) are meshed
into the strategies of Atlantic Canada Opportunities Agency and the Province of Nova Scotia. Inverness
County has significant product in five out of the seven listed and with implementing Inverness County’s
Destination Tourism Strategy has potential of delivering strong experiences in all seven.
8
Atlantic Canada Primary Travel Motivators:
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4.3
Coastal Experiences
Sightseeing and Tours
Culture, Entertainment and Heritage
Culinary Experiences
Outdoor Activities
Major and International Events; and
Experiential Accommodations
Destination Cape Breton 2014 Strategic Plan
Destination Cape Breton Association (DCBA) is the island wide tourism association. The mission of DCBA
is to ‘Utilize our iconic, quality, market ready travel motivators to improve Cape Breton Island tourism
through increasing the Island’s visitation numbers, accommodations occupancy, as well as the length of
stay of our visitors, and in turn the economic impact of the tourism industry to the Cape Breton
economy’. DCBA takes the lead for Cape Breton in the key areas of marketing, product development
and visitor services. DCBA focuses development efforts around the primary motivators of travel to Nova
Scotia and Atlantic Canada as identified in Nova Scotia Tourism Agency’s (NSTA) Tourism Strategy, as
well as the integrated tourism strategy for Atlantic Canada Opportunities Agency (ACOA), led by Tourism
Atlantic. The DCBA plan states that a special emphasis should be placed on the following travel
motivators:

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Coastal Experiences
Sightseeing and Touring
Culture and Heritage
Outdoor Experiences, and
Golf
DCBA has identified two primary Explorer Quotient® types, as per the Canadian Tourism Commission’s
Explorer Quotient® profiles. These two traveler types include: Cultural Explorers and Authentic
Experiencers. This approach aligns DCBA directly with the international tourism marketing efforts of the
Canadian Tourism Commission.
In alignment with Atlantic Canada Opportunities Agency’s (ACOA) growth strategy for tourism, over the
past four years, Cape Breton Island’s tourism industry has raised its level of product market readiness.
DCBA is now prepared to take the lead on an experiential packaging program working with interested
tour operators, airlines and wholesalers to coordinate, promote and sell Cape Breton product as
packaged experiences.7
DCBA recognizes the growth of golf as a niche market and houses Golf Cape Breton, a tiered marketing
organization with a Director of Golf Marketing position. This organization incorporates government
partners (Atlantic Canada Opportunities Agency and Nova Scotia Tourism Agency) as well as five golf
courses, accommodation providers and auxiliary (experiential) partners. Golf Cape Breton has
7
Destination Cape Breton Association Business Plan, 2014
9
established a concierge service – a full time staff person that responds to the travel needs of golfers,
providing itinerary planning and booking services. See www.golfcapebreton.com Golf Cape Breton’s
strategy targets golfers who travel. As of July 31, 2014, bookings were up 43% over 2013.8
Golfers are a niche tourism market for Cape Breton with six anchor golf course offerings.
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5.4
Le Portage Golf Club, Cheticamp
Highlands Links, Ingonish
Bell Bay Golf Club, Baddeck
The Lakes Golf Club, Ben Eion
Cabot Links, Inverness
Dundee Resort and Golf Club, West Bay/St. Peter’s
Nova Scotia Tourism Agency Tourism Strategy for Nova Scotia
The goal of the Nova Scotia Tourism Strategy is to attract more first-time visitors who spend more and
stay longer. Included as priorities is the need to:


Develop Nova Scotia’s most competitive and distinctive tourism assets to ensure a high-quality
experience that appeals to the target high-yield market, and
Improve access to Nova Scotia and throughout the province.
The plan to improve access to Cape Breton Island is completely aligned with these objectives. Cape
Breton is a distinct, competitive destination within Nova Scotia with quality, market ready product that
will attract a high yield market. The Island also has a destination marketing organization that is prepared
to lead the development and promotion of this product. Additional access to one of Nova Scotia’s
strongest tourism regions will only serve to bring more new visitors to the province. The plan recognizes
that for Nova Scotia - tourism growth will come from air travelers - not from other transportation
modes.
5.5
Atlantic Canada Opportunities Agency Tourism Strategy
The Atlantic Canada Opportunities Agency (ACOA) works to create opportunities for economic growth in
Atlantic Canada by helping businesses become more competitive, innovative and productive, by working
with diverse communities to develop and diversify local economies, and by championing the strengths
of Atlantic Canada. ACOA puts special emphasis on initiatives that foster global competiveness. ACOA’s
Tourism Strategy focuses on the primary motivators of travel to the Atlantic Canada (as stated
previously) and focuses attention on the provision of basic visitor needs including the integration of
transportation framework (air/marine/rail/road),quality tourism services, outfitting services and tour
operator services. ACOA’s programs support focused investments on developing new and increasing the
experiential capacity of existing tourism products and experiences. ACOA is a proponent of strategic
product development stating “The right new products will drive new demands”.
8
Golf Cape Breton
10
5.6
Canada’s International Tourism Strategy
The Canadian Tourism Commission (CTC) leads Canada’s international tourism marketing. The brand
‘Canada Keep Exploring’ focuses on experiences rather than geographic areas within the country. The
strategy is to pursue markets with the highest potential return on investment and where the Canada
brand leads to a new market. A number of platforms are presented for the participation of destinations
across Canada. Opportunities range from media relations, trade shows, familiarization tours, sales
missions, and the promotion of Canada as a destination for business events. The CBI Airport will be
aligned with this strategy through the participation of stakeholders in CTC programs – directly or
through representation by DCBA.
The CTC has also created the Canadian Signature Experiences (CSE) collection– once-in-a-lifetime travel
experiences found in Canada. The CSE collection helps eligible tourism businesses promote their
products internationally. It also makes it easier for the travel trade to sell more Canada, while making
more profit. Media can utilize the Collection to find a rich array of story ideas, media collateral and other
resources. The collection currently includes Skyline Sunset Hike in Cape Breton Highlands National
Park, the White Glove Tour at Alexander Graham Bell National Historic Site, and Power Your Way
Around Cape Breton 7 Day Multisport Tour. The Inverness Tourism Plan targets the development of
three additional Canada Signature Experiences as an objective. Examples would be Glenora Distillery
and the Celtic Music Interpretive Centre. This effort alone will significantly enhance the number of
stories being told about the destination in international markets and help grow demand.
5.6
Conclusion
The CBIA aligns favorable with the Inverness County municipal plans, Destination Cape Breton Strategic
Plan, Nova Scotia Tourism Agency Tourism Strategy, Atlantic Canada Opportunities Agency Tourism
Strategy and the Canada International Tourism Strategy; while supporting global trends for fly-in
visitation and Airlines / Charter services to more fully leverage the Cape Breton Island and Cabot Trail
destination and brand appeal.
11
6.0 MARKET OPPORTUNITY
Cape Breton Island has a strong tourism reputation and consistently gathers significant accolades. Cape
Breton is renowned for the Cabot Trail, considered as one of the World’s Most Scenic Destination Areas.
6.1
A Sample of Cape Breton Accolades9
 ‘US Today’s Reader Choice for Best Motorcycle Trip’- June 2014
 ‘Mail On line’s World Most Awe-inspiring Roads’ – July 2014
 ‘Golf Digest lists Highlands Links and Cabot Links in the list of Top 10 golf courses
in Canada, with Cabot Links #42 in the world, and the Cabot Trail is consistently chosen as one
of the world’s top routes to travel’.
 ‘MSN Travel’s 10 Most Underrated Attractions’ – July 2014
 National Geographic Traveler named Cape Breton Island ‘One of 20 Must See Places for 2013’
 ‘Readers Choice for Best Motorcycle Trip’ – USA Today, 2013
 ‘Most Romantic Place in Canada’ – vacay.ca, 2012
 ‘Top Ten Dare to Go Places’ – CNN.com, 2012
 ‘One of the 49 Journeys that will Change Your Life’ – CNN.com, 2012
 ‘Cycling the Cabot Trail is rated as one of the Top 20 Outdoor Adventures in Canada’ - Outdoor
Magazine and Bicycling Magazine
6.2
Cape Breton Markets/Potential
A significant market for the region is the US. Destination Cape Breton Travel Intentions Survey indicates
in 2013, of the 393,000 room nights sold, 20% were from the US: approximately 38,000 US visitors,
compared to 8% for the province as a whole. The top five US states that have visited CBIsland.com thus
far in 2014 (Jan to July) include Massachusetts, New York, Florida, California and Pennsylvania. Virginia,
Maine, Texas, New Jersey and North Carolina round out the top 10. The largest growth in visits over
2013 are from Florida (49% growth) and California (14% growth).
The opportunity for future growth is tremendous. Cape Breton Island has the kind of experiences that
travelers around the world are seeking – the opportunity to experience a beautiful natural setting while
being immersed in an authentic culture. Competition for these travelers is fierce, and ease of access
plays an important role in how they make destination decisions. Increasingly these visitors are
travelling by air, and are seeking convenient point to point air services which allow them to maximize
their vacation time. The air industry throughout the world has expanded rapidly to meet this market
9
Destination Cape Breton website
12
demand. Destinations across Canada have also responded with increased investment as they have
recognized the incremental value of the air traveler versus the traditional drive market.
According to the United Nations World Tourism Organization (UNWTO), international tourism arrivals
grew by 5% in 2013 continuing a strong upward trend since 2009. Emerging markets are outcompeting
traditional markets for this growth and it is expected that by 2030 a full 57% of international arrivals will
go to emerging market economies. Facilitation of air travelers has now become a top priority of the
UNWTO.
While Canada lags behind world tourism growth rates, Nova Scotia is even further behind the rest of
Canada in terms of tourism performance. In 2013, visitation to Nova Scotia dropped by 3% compared to
an increase of 2% for the country as a whole. An exception is Cape Breton Island, which experienced a
5% increase in room nights sold in 2013 vs. 2012, bucking the trend of a ten year decline for the
province as a whole.
While growth from emerging markets has future potential, the most significant opportunity for Cape
Breton Island remains in North America where there is a good product market match, and there exists
massive untapped potential. Travel motivators such as the Cabot Trail, Fortress Louisbourg National
Historic Site, and Cape Breton Highlands National Park are key assets. New private sector investment at
Cabot Links is drawing unprecedented media attention, and proving that Cape Breton can compete on
the North American stage. Cape Breton Island will not compete in this market based on price, but it
must be able to compete on the access front. Success will be achieved because Cape Breton is unique
and offers value for money, if the destination is seen as convenient to access.
In order for Cape Breton Island to fully maximize growth opportunities in tourism, improved direct
access from North America gateway airports must be a top priority. The proposed CBIA meets this
need. The Airport is situated adjacent to the world famous Cabot Trail, and within three minute drive
you can start an excursion on the iconic Cabot Trail and experience spectacular destinations including
the Alexander Graham Bell Museum and the Cape Breton Highlands National Park. Airport customers
will have convenient access for touring the Cabot Trail, exploring Canada’s Musical Coast, experiencing
unique cultural experiences, exceptional fishing and world class golf.
13
6.3
Tourism Icons & Product within approximately One Hour of CBIA
The Cabot Trail Scenic Drive
The Ceilidh Trail Scenic Drive
Celtic Colours International Festival (numerous venues)
Canada’s Musical Coast
Cape Breton Highlands National Park
The Skyline Trail
Alexander Graham Bell Museum, Baddeck
UNESCO Biosphere Bras d’Or Lake
Bell Bay Golf Course, Baddeck
The Celtic Shores Coastal Trail (a leg of the TransCanada Trail)
Cabot Links & Cabot Cliffs, Inverness
Cheticamp & Acadian Region
Le Portage Golf Club, Cheticamp
La Centre de la Micareme, Grand Etang
The Whale Interpretive Centre, Pleasant Bay
Buddhist Shambhala Gampo Abbey, Pleasant Bay
Glenora Distillery - North America’s only single malt
Whisky Distillery
The Margaree Heritage River (Salmon Fishing)
The Celtic Music Interpretive Centre, Judique
The Gaelic College, St. Anne
Cape Mabou Trail System, Cape Mabou
Home of the Rankin Family & The Red Shoe Pub, Mabou
Eileim Breagha Winery, Marble Mountain
Multitude of warm accessible beaches:
Baxter Cove Beach
Little Judique Harbour
Lawrence’s Beach
Boardwalk Park Beach
Marble Mountain Beach
Courthouse Beach
West Mabou Beach
Mabou Coal Mines Beach
Inverness Beach
Chimney Corner Beach
Whale Cove Beach
Margaree Harbour Beach
Belle Cote Beach
Grand Etang Harbour Beach
Plage St. Pierre Beach
Pleasant Bay Harbour
*Not an inclusive list
14
6.6
Cabot Links Market
Cabot Links is poised to become a true golfing mecca for those players in Canada and
abroad who aspire to play one of the world’s premier Links and the only true links
course in Canada. Cabot Links will become the benchmark against which all other
courses in the province are measured.
The development of Cabot Links Golf Course has been game changing. Since its
opening in 2012, it has driven new incremental demand for travel to Cape Breton. In
2013, its first full season of operation, 72% of its visitors came from outside Atlantic Canada, with 25%
coming from Ontario and 39% coming from the United States. The 2015 Cabot Cliffs expansion will
ensure this demand continues to grow.
From a tourism perspective Cabot Links and Cabot Cliffs will become the main driver for activity at the
airport. Cabot continues to innovate and add to a globally attractive high-end and accessible golf
product, has become a catalyst for re-charging the well-known experiential travel opportunities across
Cape Breton, but specifically western Cape Breton, and more broadly, Cabot infuses the region with
opportunities to alter provincial, regional, national and international perceptions about travel to Cape
Breton Island as well as Nova Scotia (e.g. leverage/earned media).
6.7
Creative Economy
The creative economy is the fastest growing business in the world. New ideas are the source of success
today and the greatest source of personal satisfaction. The creative economy is revitalising
manufacturing, services, retailing and entertainment
industries. It is changing where people want to live, work
and learn – where they think, invent and produce. 10
This region has a wealth of creative minds – musicians,
writers and artisans. The depth and wealth of music and
creative industries is most notable. Fiddling, music and
dance is an authentic experience to this region where
tourists can find local fiddle music everywhere – from
local square dances halls, ceilidhs and entertainment in
pubs and restaurants.
The region could be known as the “land of a thousand
fiddles” and can tout a long list of accomplished musicians
such as Buddy MacMaster, Natalie MacMaster, Ashley
MacIsaac and the Rankins. Newcomers come to the region
to be entrenched in the music and culture with interest in
taking programs at the Gaelic College and the Celtic Music
Interpretive Music Centre; attending the annual Celtic
Colours International Music Festival and local music
venues; and choosing to reside and work here taking part
of the creative economy.
10
The Creative Economy – John Howkins, 2013
15
6.8
Outdoor Enthusiast
Western and Northern Cape Breton has an incredible backdrop
for outdoor enthusiasts with miles of accessible coastline,
dozens of warm sandy beaches, the Cape Breton Highlands
National Park with incredible trails like the Skyline Trail, a
network of coastal and interior trails, dozens of fishing harbours
and Canada’s Inland Sea - the Bras d’Or Lake. One can find
numerous whale watching and sailing tours, outfitters (for
cycling, kayaking, fishing and hunting) and lots of opportunities
for individual touring and exploration of Cape Breton.
This region is becoming a destination for fishing and outdoor adventure – whether lobster fishing on the
coast, or fly fishing for the Atlantic Salmon in the Margaree River, or trout and small mouth bass fishing
in Lake Ainslie (Nova Scotia’s largest freshwater lake), or deep sea fishing for Bluefin tuna, cod, mackerel
or shark in the Northumberland Strait and the Gulf of St. Lawrence – Inverness County provides great
sea coast and interior lake fishing experiences. In Nova Scotia,
anglers spend over 93 million dollars annually to support their
outdoor passion creating jobs in tourism, transportation,
retail goods, boating and more.11
Hike /Bike the Cabot Trail
The Cape Breton Highlands National Park has many trails,
ranging from short family walks to spectacular hiking
expeditions like the Skyline Trail, Pollett's Cove trail or
Roberts Mountain. There are dozens more within and around
the communities; beach walks are common as well.
6.9
CBIA Market Targets
Given these strengths, CBIA will focus on the following market segments:
1. Golfers and fly fishers on general aviation private planes
2. Golfers, fishers, and touring visitors (focus on creative, cultural and outdoor enthusiasts) on
potential charters from Montreal, Toronto, and New York (with expansion potential to
Massachusetts and Florida)
3. Tourists and residents on potential scheduled service from Toronto – new incremental visitors
plus visitors and residents who are attracted to the convenience of the service.
7.0
Conclusion
The opportunity exists for additional businesses to build on the success of Cabot Links. In the tourism
sector alone, the natural and cultural advantages of Inverness County – warm sandy beaches, world
class touring, authentic culture, spectacular coastline – combined with direct air access and available
labour force, will position the entire area for new investment. The airport will become a critical tool for
investment promotion and business attraction – in the tourism sector and beyond.
11
Sport Fishing and Game Hunting in Canada 2012, CTC Research & Evaluation, 2012
16
7.0
BEST PRACTICES / CASE STUDY
In 2010 Genivar Inc., an engineering firm based out of Ontario, was hired to conduct a technical study
and report on the viability of expanding the Margaree Airstrip. In 2012, Genivar was retained to update
the technical report and provide socio-economic benefits of the proposed expansion of the Margaree
airstrip.
The Genivar Report highlights the Southwest Regional Airport, Oregon and the Basin Airport, Vermont
to quantify the economic impact involving relationships between airport activities and tourism resort
areas that include golfing facilities. The following are two airports whose success has been directly
related to ease of access to high end niche/experiential tourism.
7.1
Bandon Dunes Golf Resort – Southwest Regional Airport
Bandon Dunes in Oregon, currently judged to be the best golf
resort in the world, opened in 1999 with its first 18-hole
course, meeting with great success such that in the following
years three more 18-hole courses were added. It is now the
finest in America, and has become an important employer and
contributor to the state economy.
Mike Keizer, avid golfer and developer and owner of Bandon
Dunes has become involved with a string of high-profile golf projects across the globe including Cabot
Links and Cabot Cliffs. He is noted for developing successful links courses at a time when golf is
struggling.
A links is the oldest style of golf course, first developed in Scotland. Links courses tend to be on, or at
least very near to, a coast, and the term is typically associated with coastal courses, often amid dunes,
with few water hazards and few if any trees. This reflects both the nature of the scenery where the sport
happened to originate, and the fact that only limited resources were available to golf course architects
at the time, and any earth moving had to be done by hand, so it was kept to a minimum. Even today,
some links courses do not employ a greens staff and are walking only courses.
The Southwest Regional Airport is the gateway airport that serves the golf complex and region. It is the
only commercial airport on the Oregon Coast and is served by "United Airlines" (Skywest) and SeaPort
Airlines. The airport is seeing more private jets carrying golfers to Bandon Dunes Golf Resort a 20 minute
drive from the airport. In 2010 there was an approximate 25,000 passengers landing at Brandon.
7.2
Mont-Tremblant International Airport
The Mont-Tremblant International Airport is an additional case
study that speaks to the kind of destination airport model in
mind for the Cabot Trail.
Mont-Tremblant is located in La Macaza, Quebec. The facility is
a single runway airport located in the township of La Macaza. It
is approximately 46 km north of Mont-Tremblant, in the
17
Laurentian Mountains, a city of about 9,500 people and one famous for its ski resorts. Mount Tremblant
is increasingly known for hiking, cycling, canoeing, golfing, among other outdoor activities.
In 1939, the Mont Tremblant Lodge and the mountain’s first chairlift opened, the initial steps towards
transforming the sleepy northern hamlet into a major winterland resort. Travelers and ski enthusiasts
did take notice, but it wasn’t until the resort was purchased 1991 that Mont Tremblant began to fully
realize it’s potential. With the construction of the pedestrian village and its world-class shops,
restaurants and airport, the destination was fully realized—for the past 8 years, Mont Tremblant has
been recognized as the #1 ski resort in eastern North America, and has blossomed into a first-class yearround tourist destination.
The airport was originally completed in 1962 as an RCAF facility to provide an emergency landing field,
with a runway of just under 6,000 ft. It was also home to 447 SAM Squadron. After 1968, the station
became CFB La Macaza and the base was finally closed in 1972.
The region of Mont-Tremblant is more accessible than ever since the grand opening of the MontTremblant International Airport (YTM), in Rivière-Rouge. Located only 35 kilometeres (22 miles) from
Tremblant Resort, the Mont-Tremblant International Airport (YTM) offers direct flights to and from New
York and Toronto. The nearest airport is Montreal airport an hour and 20 minute drive away (127 km).
Today the airport is classified as an airport of entry by NAV CANADA and is staffed by the Canada Border
Services Agency. The airport consists of a small chalet style terminal building alongside of the runway.
Starting out the terminal building was modest and has been expanded twice since the early 2000’s.
The airport is served during the ski season and summer months by Porter Airlines. In 2009 MontTremblant Airport officials announced a $4.5M expansion plan, citing the planned development of the
Mont Tremblant Casio, as well as increased traffic associated with winter and summer activities.
18
The plan calls for an increase to 25,000 square meters of runway space, from 5,000, and the expansion
of the airport terminal facilities. Within this plan, the airport will extend the runway to 8,202 ft to allow
larger jets to land, a larger terminal, and the addition of an aerodrome with a waterside terminal for
floatplanes.
The most interesting feature of the airport traffic is that, while the scheduled services was originally
targeting ski season, the operating period was expanded as spring and summer outdoor activities and
related services developed. From an economic development perspective, this generated a range of
opportunities for small operators in low-cost of entry businesses, in equipment rentals, guiding, among
other goods and service areas related to spring and summer outdoor activities.
Mont Tremblant has year-round activities which take advantage of the surrounding environment
(mountains, forest, lakes and rivers); most are set up on daily schedules and usually take the form of
tours in small groups and are accessible to families; most are run by independent operators or
specialized guides.
Summer activities include airplane tours, all-terrain vehicle tours, croisieres, boating, caleche rides,
canoeing trips, cycling, dune buggy tours, fishing tours, golf, helicopter tours, hiking, horseback riding,
lake cruises, mountain biking, paintball games, rafting, rock climbing school, spas, via-ferratta,
waterskiing and wakeboarding, white-water rafting and zip-lines.
Winter activities include cross-country skiing, dogsledding, downhill skiing and ski schools, helicopter
tours, horseback riding, ice-climbing, ice fishing, ice skating, paintball, sleigh rides, snowmobiling,
snowshoeing, tubing and spas.
7.3
Conclusion
The airports serving Bandon Dunes, Oregon and Mont Tremblant, Quebec are significant examples of
the right mix of vision, high end tourism product investment and the investment into air access.
Investment has paid off in creating lucrative operations and generating opportunities for independent
operators and employment. There are lessons to be taken from both cases and best practice missions
are planned to visit each site.
19
8.0
EXPANDED OPPORTUNITIES & ALTERNATIVE USES
The Genivar Study illustrates projected charter and general aviation uses of the airport facility. This
section includes related uses and activities leveraged from airport facility operations.
While the tourism impact of the enabling infrastructure will likely be the main driver of the planned
development of the CBIA, supporting the bulk of the business and economic case for the investment,
there are several other tourism and economic related opportunities that should be highlighted or could
be explored. The potential of these related opportunities is increased by having a modern airstrip, with
IFR (instrument flight rules) capacity, as well as improved terminal facilities.
8.1 Conference Centre
The development of the airport, the growth and profile of Cabot Links, and the investment in Cabot
Cliffs provides a variety of co-marketing and co-packaging opportunities. With expanded capacity Cabot
Links and the new Cabot Cliffs facility will have the capacity in 2015 to leverage new business for
meetings and conferences for the area, extend the operating season of the facility, independent of golf
demand and provide business opportunities for ground transport providers and other service industries.
8.2 Fly-In Residential Community
Fly-in residential communities often develop with airport accessibility. Fly-in residential opportunities
include:
o Runway Fronting Hanger Homes,
o Community Home Lots/ Cottage Lots,
o Aircraft and Hangar Services,
o Shared Aircraft Ownership Program, and
o Communal Hangars.
Considering the location of the airstrip, prime fly-in residential opportunities/targets for the Margaree
River and area would be fly-fishing, outdoor and snowmobile enthusiasts.
Fly-fishing – Current trends support this concept with general aviation arriving in Margaree from New
England and Atlantic Canada purposefully for fishing salmon. The Margaree River (part of the Canadian
Heritage River System) is the largest river system in Cape Breton with a total length of 120 kms. It is
considered the best Atlantic salmon River in Atlantic Canada. The Margaree River passes handy to the
airstrip and is easily walkable.
Snowmobiling – Current snowmobiling trends support this concept with good numbers coming from
Atlantic Canada for short stints for snowmobiling in the highlands. The Cape Breton Highlands
snowmobile trails are one of Nova Scotia’s premiere snow belts with thousands of kilometres of trails
encompassing the region and connectivity and access to accommodations, food, fuel and repairs.
As part of the Group ATN Consulting work, a local cycle tour operator and a company that has offered
ATV/snowmobile tours in the Inverness area were contacted. Interest in the potential of the CBIA and its
expansion is high, with operators seeing positive impacts on their operations.
20
8.3 Outfitters/SME’s
Land made available bordering airports draw and accommodate commercial operators in
transportation, logistics, touring, outfitting and other sectors that are well suited.
Mount-Tremblant, in particular, stands out as an example of potential expanded opportunities. With
scheduled service aimed at the ski season, gradually the scheduled service was expanded into the spring
and summer as the popularity of non-ski related outdoor activities developed. From an economic
development perspective, this illustrates the potential of the CBIA as a tool to generate a range of
opportunities for businesses and small operators. There are opportunities for operations that provide
goods and services related to touring and outfitting (hiking, biking, kayaking, guiding, fishing, camping,
hunting, snowmobiling and vehicle rentals) based at or near the airport facility.
8.4 Aviation related technology-park
There are opportunities to attract and/or develop companies who are engaged in maintenance for
structures work on aircraft. There is an interest expressed from an aviation mechanic to establish a
service on site.
8.5 Clubs
The Margaree Airstrip had an organized Skydiving club in the 1980’s. The existing hanger on site is a
result of this period. The rejuvenation of a flying/diving club would support the community ownership
and stewardship of the facilities when established.
8.6 Flying-Related Events
The Margaree Airstrip has a history of hosting annual events around aviation attracting flyers and
aircrafts from many different areas. The Margaree Fun Fly organized by the Cape Breton Radio Control
Modelers is an annual event that has been held for 30 plus years. The event averages 60 modelers and
over 100 aircrafts. The majority of participants come from Shearwater, Enfield and Annapolis Valley
attracting good number of spectators.
8.7 Firefighting/Forestry Management /Search and Rescue Center/Training/Coordination
The expansion of the facility and its accessibility throughout the year will improve its role in firefighting
and forestry management, as well; the expansion will enhance the facilities competitiveness to host
search and rescue/safety-related training. In the last 10 years, the military has occasionally used the
facility for SAR technician training operations.
8.9 Cadet Summer Training Centre
The CBI Airport will provide opportunity for cadet ground schools in this region.
8.10
Conclusion
The CBI Airport can impact small businesses and enterprises (SME’s) operations, existing and new, on
the front lines of generating “see and do“product. Lessons from Mount-Tremblant International Airport
and its trajectory suggest strong potential for development of non-golf related activities which could
become complimentary to golf and other Cabot Trail and indeed Cape Breton tourism product. SMEs
that are impacted by a new access point / entry point into the Cabot Trail and barriers to entry and
21
business expansion are relatively low, from both a capital investment perspective as well as a business
infrastructure perspective.
Other expanded and alternative uses of the CBIA that can emerge include residential fly-in communities,
touring and outfitter operations, aviation maintenance and service, and expanded season tourism
product development.
22
9.0
AIRF IELD T ECHNICAL F EASIBLIT Y ST UDY
In 2010, Genivar Engineering Consultants conducted an initial development concept and preliminary
costs estimates of the Margaree Airstrip. Over the past three year we have undertaken further work to
update technical studies and provide social-economic benefits. After weighing several potential site
locations, Inverness Municipality and the consultant technical team have recommended the Margaree
site. The technical document provides project description, site inspections, airfield technical feasibility
and an airport development marketing analysis.
The Margaree Airstrip is owned and operated by Inverness
Municipality. The site was selected for in-depth analysis
due to its proximity to the community of Inverness and
the fact that the expansion of an existing airport site is
generally more technically feasible than developing a new
site.
The study explores the expansion of the existing Margaree
Airport 2,500 foot runway to a runway length of 5,000 feet
and double the width.
An inspection of the proposed Margaree site was
conducted by Genivar Inc. in March 2012. The intent of the site inspection was to perform a review of the
existing site conditions, to obtain preliminary topographic and geotechnical (soils) information along the
proposed runway expansion and to verify preliminary analysis. The feasibility study concluded that the
runway 01 - 19 was technically feasible for expansion. Factors that influenced the feasibility include:
Average Usability
Factors Based On
Winds
80.16 %
OLS Terrain
Obstructions
Runway Length
Impacts
Land Acquisition
Requirements
Capital Costs / m2
Terrain
Obstructions
Mitigated
5000 ft. Length
Maintained
Land Reportedly
Available for
Development
$148.63
Other factors that contributed to a favorable site:




As the Margaree site is an existing airport, there is less perceived potential for public objection to
the airport expansion as opposed to the development of a new airport at an underdeveloped site.
There is minimal residential development.
The native subgrade material appears to be suitable for sub-base and will reduce the estimated
costs.
There is an existing gravel pit located on the proposed lands to be acquired. The proximity of the
gravel source would reduce the estimated construction costs for the project.
The Airfield Technical Feasibility Study concluded that it is technically feasible to expand the existing
runway at the Margaree Airport to a TP312 compliant Code 3C, Instrument, Non-Precision runway.
Inverness Municipality has recently purchased Lidair and wind rose data from Leading Edge Geomatics
for the next phase of geotechnical study. See attached – WPS correspondence re: alignment & predesign
work. Note that Genivar Inc. has merged into a new company called WPS.
23
10.0 ECONOMIC IMPACT
The Genivar report provided estimated traffic flow and revenue for the CBIA. The report provided
estimates for visitation, by trip purpose, as well as direct spending. The categories of visitation that were
considered, based on case studies of three comparable facilities, are noted in bullet format and in the
following chart.

General Aviation, achieving nearly 4,200 passengers by 2021 and direct revenue generation,
accruing to the region through visitor related spending, of $1,800,200 per year by 2021.

Charter Flights, based on assuming a three-day minimum stay per visitor, and average spending
per day of $200, would generate direct annual revenues to the local economy of $1.428 million
in 2016, and $2.52 million per year by 2021.

Other Flight Impacts, based on an average direct spending of $300 per passenger gives direct
revenues to the region of $135,000 in 2016 and $172,000 per year by 2021.
Cape Breton Island Airport - Estimated Traffic Flow and Revenues (Source: Genivar Report, 2012)
Type of Client
General Aviation
Charter Flights
Other Itinerants
Total
2016
Arriving
Passengers
3,255
2,380
450
6,085
2016
Local Revenues
$1,410,500
$1,428,000
$135,000
$2,973,500
2021
Arriving
Passengers
4,200
4,200
575
8,975
2021
Local Revenues
$1,800,200
$2,520,00
$172,000
$4,492,000
The cumulative potential clientele could reach over 6,000/year in 2016 and almost 9,000/year by the
year 2021. Direct revenues from the expanded airport could reach about $3 million per year in 2016,
and almost $5 million in 2021. This equates to a per-person direct spending/revenue of $470 in 2016 to
$499 by 2021.
10.1
Further Economic Impact Analysis
In 2014, Group ATN Consulting was hired to do further work in estimating the indirect and induced
impacts associated with the spending. Group ATN Consulting used the Genivar Report document as a
base providing estimates for visitation; however their research found that Genivar’s estimates on direct
spending were low.
Using the most current industry Fact Sheet from the NSTA and their values Group ATN Consulting were
able to develop new tables calculating per visitor impacts associated with visitation projections
associated with the CBI Airport expansion.
Combined, the general aviation, charter flights, and other flight impacts outlined in the Genivar report
spend an average of $299 per day during their trip, staying for an average of 1.7 days, for a total per trip
expenditure of just over $500.
24
10.2
Big Spenders Segment
By comparison, the average non-NS per person spending per day is $170 for the overall average tourist
and just over $525 per person, per day for the so called “Big Spenders” market segment.
Economic and Rural Development and Tourism had developed a series of visitor profiles, including one
for the “Big Spender Segment”. Big Spenders staying 1 night spend $817 per party, not including air, and
the average party size is 1.9). The average per night expenditure of $525.53, per person, for those
staying two nights. The report is located at the NSTA’s website:
http://novascotiatourismagency.ca/sites/default/files/page_documents/big_spenders.pdf.
10.3
Findings: Impact of 6,000 Visitors By 2016
If the 6,000 visitors had spending characteristics more like the “Big spenders” market segment, total
direct revenues would be in the order of $5.26 million by 2021, as shown in the following table (all
figures are in millions, except for employment, which reports the number of jobs).
Table 1 – Tourism Impact of 6,000 Passengers to CBIA, Estimated based “Big Spender”
Per Diems and NSTA Reported Tourism Impacts, by 2016
Effects
Impact of
Impact of NonTotal Impact
Golf Related
Golf Related Air
of Air Travel
Air Travel
Travel
Total Revenues
$3.94
$1.31
$5.25
Tax Revenues
Direct Provincial Revenues
$0.27
$0.09
$0.36
Spin-off Provincial
$0.10
$0.03
$0.14
Revenues
Total Provincial Revenues
$0.37
$0.12
$0.50
Direct Federal Revenues
$0.23
$0.08
$0.30
Spin-off Federal Revenues
$0.10
$0.03
$0.13
Total Federal Revenues
$0.33
$0.11
$0.44
Overall Tax Total Revenues
$0.70
$0.23
$0.94
Direct GDP
$1.40
$0.47
$1.87
Employment
Direct Employment
48.51
16.17
64.68
Spin-off Employment
20.14
6.71
26.85
Total Employment
68.65
22.88
91.53
Household Income
Direct Household Income
$1.03
$0.34
$1.37
Spin-off Household Income
$0.69
$0.23
$0.92
Total Household Income
$1.72
$0.57
$2.30
Visitors
6750
2250
9000
25
The $5.25 million in direct revenue would have the following impacts:

$0.50 million in provincial revenues and $0.44 million in federal revenues, for a combined $0.94
million in overall tax revenues through direct and spin-off impacts;

$1.87 million in total contributions to Gross Domestic Product;

91.5 jobs through the combination of an estimated 64.7 direct employment positions and 26.9
jobs through spin-off employment impacts; and

$1.37 million in direct household income and $0.92 million in spin-off household income, for a
combined $2.3 million in household income through direct and spin-off impacts.
10.4
Findings: Impact of 9,000 Visitors By 2021
If the 9,000 visitors had spending characteristics more like the “Big Spenders” market segment, total
direct revenues would be on the order of $7.9 million by 2021, as shown in the following table (all
figures are in millions, except for employment, which reports the number of jobs).
Effects
Effects
Total Revenues (Millions)
Tax Revenues (Millions)
Direct Provincial Revenues
Spin-off Provincial
Revenues
Total Provincial Revenues
Direct Federal Revenues
Spin-off Federal Revenues
Total Federal Revenues
Overall Tax Total Revenues
(Millions)
Direct GDP (Millions)
Employment (Number of
Jobs)
Direct Employment
Spin-off Employment
Total Employment
Household Income
(Millions)
Direct Household Income
Spin-off Household Income
Total Household Income
Impact of
Golf Related
Air Travel
$5.91
Impact of NonGolf Related Air
Travel
$1.97
Total Impact
of Air Travel
$0.41
$0.15
$0.14
$0.05
$0.55
$0.20
$0.56
$0.19
$0.75
$0.34
$0.15
$0.49
$1.05
$0.11
$0.05
$0.16
$0.35
$0.45
$0.20
$0.65
$1.40
$2.10
$0.70
$2.80
72.77
24.26
97.02
30.21
102.98
10.07
34.33
40.28
137.30
$1.54
$0.51
$2.06
$1.04
$2.58
6,750
$0.35
$0.86
2,250
$1.39
$3.44
9,000
$7.88
26
The $7.9 million in direct revenue would have the following impacts:

$0.75 million in provincial revenues and $0.65 million in federal revenues, for a combined $1.4
million in overall tax revenues through direct and spin-off impacts;

$2.8 million in total contributions to Gross Domestic Product;

137.3 jobs through the combination of an estimated 97 direct employment positions and 40 jobs
through spin-off employment impacts; and

$2.06 million in direct household income and $1.39 million in spin-off household income, for a
combined $3.44 million in household income through direct and spin-off impacts.
Given the cost of green fees, accommodations, food and beverages, ground transportation, and air
travel, it is difficult to imagine a per person per diem of less than $525, suggesting the Genivar direct
spending estimates may be conservative. For example, estimating the cost of a return flight from
Toronto to CBIA, and including a per day provision for accommodations ($150), green fees ($130),
ground transportation ($50), meals and beverages ($80), and air ($750) for an overnight stay, yields a
per person expenditure of nearly $560 per day.12
10.5
Cape Breton Golf
A study completed by Golf Cape Breton in 2012, concluded the combination of the six Cape Breton golf
courses had an impact of 403 direct and spinoff jobs, $7.47 million in household income, $9.21 million in
GDP and $1.72 million in taxes. Golf Cape Breton is well positioned to cross market and package Cape
Breton golf experiences.
10.6
Tourism Economic Vitality
Tourism, of course, impacts communities and the people of Cape Breton Island in many ways. Tourism
accounts for those employees using their wages to purchase goods and services, including housing,
transportation, food, clothing, healthcare and entertainment. The money invested into our local
economy by tourists circulates throughout our economy several times over, providing ongoing economic
impact that would disappear entirely without tourism.
Tourists also pay taxes. Transaction taxes collected from tourists include sales tax, hospitality fees, fuel
tax, accommodations tax and education tax. Some tourists decide to relocate here and purchase a
home. Other tourists invest in investment properties and/or second homes. In short, tourism is one of
the strongest contributors – and one of the few truly renewable resources - that Cape Breton has.
The impact of private sector investment in the development and opening of Cabot Links on the
community of Inverness is a good case in point. Workers and entrepreneurs have been attracted to the
community. At a time when rural communities across Nova Scotia are in financial crisis, tax revenues
have increased by 82% over the past ten years (compared with an increase of 55% Cheticamp) and the
tax rate has remained stable. Businesses are investing in façade improvements supporting a program
12
Potential Impacts of the Cape Breton Island Airport, Group ATN Consulting, 2014
27
(2014-15) with twenty-five businesses participating to improve the main street of Inverness. Population
in the Inverness elementary school is increasing, and in 2013/14 the primary class had to be split due to
an increase in size.
10.6
Conclusion
Airports offer increased accessibility, which in turn fuels the tourism sector. With an increase in the
number of visitors and airport users, more money flows into the local economy. With increased
economic activity and employment, consumer behaviors change, raising the standard of living of the
people in the region.
It is estimated that in a first year of operation, the airport would facilitate travel by 6,000 incremental
visitors, generating $5.26 million direct revenues and an estimated 65 new direct jobs and another 27
jobs through spin-off employment impacts. By year 5, visitors would increase to 9000, generating $7.9
million in incremental revenue and estimated new direct jobs number grows to 97 and jobs through
spin-off employment would grow to 40.
28
11.0 CAPE BRETON ISLAND AIRPORT BUSINESS CONCEPT
11.1 Cape Breton Island Airport
Inverness Municipality’s objective is to invest in the enhancement of airport infrastructure that will
produce broad public benefits, and contribute to economic growth, a clean environment and stronger
communities.
This section describes project timeline, management structure, infrastructure requirements and related
plans and projections (capital and operations) for the Cape Breton Island Airport. The aerodrome facility
will be developed to meet safety standards and in accordance to national standards. Upon developing
partnerships the business concept will be further developed with a full business plan and operational
plan.
11.2 Targeted Project Timeline
Funding Commitment Phase
Planning Phase
Building Phase
Airport Operations
Dec 2014 – February 2015
Mar – Sep 2015
Oct 2015 – Apr 2016
May 2016
11.3 Mission
The Cape Breton Island Airport mission is to be: 1) the tourism gateway to western and northern Cape
Breton, 2) a base for charter aircraft operation and general aviation activities and support, and 3) a
potential base for specialized aircraft overhaul and maintenance. The CBI airport’s main strength will be
located closer to tourism product amenities reducing the transit time of clients seeking 1 – 4 day
excursions.
11.4 Target Markets & Approach
Our business case is built on demand from tourists. We know there is a huge population within three
flying hours of the airport – this will be our target.
The primary markets for the airport are charter aircraft operations and general aviation flying in to
Cabot Links and Cabot Cliffs from the US and Canada (within a three flying hours) and secondary
markets are all other tourism destinations throughout the Cabot Trail region and broader.
Inverness Municipality will work with Cabot Links to entice/motivate airlines such as West Jet, Provincial
Airlines and Porter to provide direct flights from Toronto and direct flights from Northeast USA (Boston,
Newark or other) to Halifax (clearing customs) and a flight on to Cape Breton Island Airport.
11.5 Management Structure
The Municipality of the County of Inverness will be the proponent to own, develop and manage the
Cape Breton Island Airport. A Community Advisory Board has been struck bringing together local
stakeholders with mutual interest (including Cabot Links) in airport development and to facilitate co-
29
marketing activities. A Memorandum of Understanding (MOU) between the Advisory Board and the
municipality will be developed to identify clear roles and responsibilities.
A general manager will be hired reporting to the Municipal Advisory Committee. The general manager
will be responsible for general operations. The Municipality will oversee airport accounting and
reporting system.
The Municipality of Inverness is open to exploring contracting/leasing arrangements for operating
airport business.
11.6 Service
The CBIA will initially operate seven months of the year, starting in April and ceasing operations in
November until an expanded service model is warranted.
The CBIA business concept is based on the Mont Tremblent Airport model. CBI Airport is projecting:



2 flights per week from Toronto and from Northeast USA (Boston, Newark or other) starting in
first year of operations (2016) and growing to 4 flights per week by 2019
An average 50-seat aircraft.
General aviation from Canada and the USA
The design of aircraft anticipated for the proposed airfield are the Bombardier Dash 8-300, Dash 8 Q400
and the future C-Series, based on the typical aircraft types anticipated to be used by scheduled air
carriers to service the site. A number of general aviation (GA) aircraft are also anticipated, ranging from
the Cessna Skyhawk to the King Air 200 and as large as Cessna Citation Bravo and the Learjet 45X.
In the case of general aviation landings from the US, Custom Services would be called out of Sydney.
There is a requirement for more traffic before seeking more permanent Custom Services.
11.7 Infrastructure
The technical study reinforces that the runway infrastructure and investment in place at the current
Margaree airstrip would be equivalent to about $2.85 million (2010 dollars) and will decrease the costs
of building a new airstrip by that amount.
The runway expansion plan is to increase the length of the existing runway from 2,500 ft. to 5,000 ft.
long and increased width from 75 ft.to 100 ft. wide. The airport plan includes a navigation system to
locate the aerodrome and to assist in poor weather landing procedures; airport lighting, an associated
apron and taxiway, a fuel dispensing system; and airfield equipment. Cost estimates are based on 2014
estimates.
For future growth potential, Inverness Municipality will prepare a modest commercial development lot
and establish a land reserve for the ultimate development of a public terminal when passenger demand
becomes well established.
30
Two additional parcels of land must be acquired to meet the recommended land (165 hectares) required
to accommodate the airstrip expansion. The municipality has budgeted $300,000 for the land
acquisition and has started the process of acquiring land and will resort to expropriation of the land if
necessary.
11.8 Portable Building
The Technical Feasibility Study proposed an Air Terminal Building (1,256 m2) to serve corporate/general
aviation needs as well as accommodate commercial air service estimated to be $4.7 million. There will
be a five year period before needing a full sized building to handle projected volume.
As an appropriate solution for the onset Inverness Municipality plans to purchase a mobile building 24’ x
46’ (1,104 ft. sq.) as a fixed base operator facility providing a gateway experience for tourism market
clientele. Passenger and baggage screening would be conducted through Sydney & Halifax Airports. The
following is an estimate of functional space.
Portable Building Functional Space
Feet sq.
Public Waiting
Check-In
Washrooms
Coffee Bar
Car Rental Concession
Baggage Claim Area
Administration Office
Pilots Rest Area
Flight Planning Area
Storage
Mechanical/Electric
Janitorial
Sub-total
300
50
75
20
20
200
50
50
20
35
35
20
875
Circulation / Structure @ 25%
Total
218
1,093
11.10 Aerodrome Operations Manual and Related Plans
The aviation community, and especially the corporate, business and high-end tourism markets will
normally assume that the airport meets safety standards. Consequently in addition to ensuring that the
facility is developed in accordance with national standard, management will ensure as a minimum that
the following are developed:




A formal organization for operational management of the airport.
A Safety Management System (SMS) with an “accountable executive”.
The development of an Aerodrome Operations Manual (AOM).
An Emergency Plan (coordinated with local resources).
31

A Wildlife Plan.
11.11 Preliminary Work
With the agreement of funding partners to support the Cape Breton Airport concept in principle, the
project will proceed to the next steps which include:
1)
2)
3)
4)
5)
6)
A detailed geo-technical investigation
A detailed topical survey
A detailed obstruction survey
An environmental assessment
A primary airfield design
Updated construction costs estimates
11.12 Airport Business & Marketing Plan
Upon receiving updated construction cost estimates, a formal Airport Business/Marketing Plan will be
developed, followed by the development of marketing materials. The plan would include as a minimum:







Value Proposition
Mission and Objectives
Mission Statement
Market Segments and Business
Opportunities
Targeted Market Segments
Marketing Objectives
Positioning Statement








Target Firms
Promotional Planning and Strategy
Messaging Themes
Pricing Strategy
Operational Plan
Capital and Operational Projections
Cash Flow Projections
Implementation Action Plan and Budget
11.13 Airport Capital Estimates
The Genivar Study and recent aviation studies and airport operational financials have been reviewed to
put together an estimate of capital costs and operational projections for the Cape Breton Island Airport.
Inverness Municipality estimates that capital costs will be an approximate $9.4 million. See section 12.0
Financial Projections – Capital Cost Estimate, Page 34.
11.14 Airport Operations
Inverness Municipality has representation on the Port Hawkesbury Regional Airport Management
Committee. The Port Hawkesbury Airport, located minutes from the Canso Causeway, has experienced
increased business due to Cabot Links attracting golfers arriving by general aviation. Operational
revenue has increased by $80,000 annually in airport fees and fuel sales within two years Cabot Links
has been in operation (2012 – 2014). This increased revenue is exclusively golfer generated. The $80,000
in revenues is transferable with the opening of CBIA securing well over 50% of operations for the new
facility.
32
Port Hawkesbury Airport operational revenue and expenses were factored in for CBIA financial
projections. Operational costs are estimated to be an approximate $130,000 (2014) growing to $190,000
(2021) with operational revenue in the same range. See section 12.2 Operational Projections, Page 35.
and Appendix D - Airport Fees Forecast Assumptions and Appendix E - Airport Refueling Forecast
Assumptions.
Inverness Municipality is committed to support an operational short-fall.
33
12.0 FINANCIAL PROJECTIONS
12.1 Cape Breton Island Airport - Capital Costs Estimates
#
Runway Expansion
Description
Estimate
1
2
3
Pre-Design Work Fee
Land Acquisition Costs
Runway Expansion Cost (01 – 19)
Subtotal
Geo-technical, survey, design
165 hectares
(includes items - see below)
$44,0000
$300,000
$6,542,500
$6,886,500
One runway end installation
$360,000
$150,000
$330,000
$840,000
4
5
6
Airport Operational Infrastructure
NAVAID – ODALS Approach Lighting System
NAVAIDS
Airfield Security Fencing
Sub-total
7
8
9
10
11
Terminal Building
ATCO Portable Building & Site Prep
Electrical
Septic Disposal System
Well (drilled) & water system
Building equipment & furniture
Sub-total
12
13
14
Support Infrastructure
AVGAS Compound & fuel dispensing system
Overhead lighting
User passenger parking lot
Sub-total
17
18
Engineering, Design, Plans & Contingency
(9 %)
HST (4.286% payable portion)
TOTAL
Notes:
$100 /metre
24’ x 46’
Office setup, counters, seating
$116,000
$5,000
$25,000
$15,000
$20,000
$181,000
Self-serve, above ground
$250,000
$75,000
$20,000
$345,000
Includes plans /inspection/contract
administration
on $8,995,225
$742,725
$385,535
$9,380,760
1–3
Capital Estimates derived from 2012 Genivar Geo-technical Study & Pre-Design Work Proposal
3
Includes electrical, airfield edge lighting, taxiway and ramp area, NAVAID – PAPI and airfield signage
4–6
Cost estimates acquired from Port Hawkesbuy Airport Feasibility Study, CBCL - 2014
7
Quote provided for ATCO building
8 – 11
Cost estimates provided by Inverness Municipality – Public Works
12 – 14 Cost estimates acquired form Port Hawkesbury Airport Feasibility Study, CBC - 2014
17
Engineering, Design & Contingency previously incorporated in Genivar Runway Expansion Costs at
$457,500. Full project calculated at 9%.
34
12.2 Cape Breton Island Airport - Operational Projections
Revenue
21
22
23
24
25
26
Landing/ Parking Fees
GA Fuel Sales (profit)
Charter Fuel Sales
Land Rental Fees
Municipal
ACOA / Province
2015
2016
$50,000
$19,725
$87,000
$3,750
$2,000
$14,525
2017
$24,920
$91,350
$8,500
$2,000
$18,530
2018
2019
2020
2021
$31,035 $38,990 $43,495 $48,000
$95,700 $100,050 $104,400 $108,750
$14,250 $22,000 $26,000 $30,000
$2,000
$2,500
$2,500
$2,500
$20,515 $10,660
$5,605
$1,850
$50,000 $127,000 $145,300 $163,500 $174,200 $182,000 $191,100
27
28
29
30
31
32
33
34
35
36
37
Expenses
Accounting & Legal
$5,000
$2,500
$2,500
$2,500
$3,000
$3,000
$3,500
Advertising
$5,000
$6,500
$8,000
$9,500 $10,000 $10,500
Insurance
7,500
$7,800
$8,000
$8,200
$8,400
$8,600
Light & Heat
5,000
$5,200
$5,400
$5,600
5,800
$6,000
Materials & Supplies
5,000
$5,200
$5,400
$5,600
$5,800
$6,000
Management
$40,000 $40,000 $50,000 $60,000 $62,000 $63,000 $64,000
Assistant
$15,000 $20,000 $25,000 $30,000 $35,000 $40,000
Supplies/Miscellaneous
$3,000
$3,000
$3,500
$4,000
$4,500
$5,000
$5,500
Telephone
$2,000
$2,000
$2,100
$2,200
$2,300
$2,400
$2,500
Equipment & Repairs
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
Capital Reserve
$40,000 $40,000 $40,000 $40,000 $40,000 $40,000
Total
$50,000 $127,000 $145,300 $163,500 $174,200 $182,000 $191,100
38 Income
39 Capital Replacement
Accumulative
0
0
$40,000
0
0
0
0
0
$80,000 $120,000 $160,000 $200,000 $240,000
Notes:
21
See Appendix B & C for assumptions
22
GA Fuel Sales based on increased business at P.H. Airport associated to Cabot Links and increased 5% annually
24
Assumption of some rental fees for land (maintenance & repair)
25
Municipal contribution based on operational shortfall
27 – 36 Expenses based on P.H. Airport operations
26
Government funding for planning assistance (75 %)
32
Manager wage or contract @ 8 months x $5,000/mo. Wages increase in following years for part-time assistance
33
Wage for assistant predominately during flight arrivals and departures
35
12.3 Cape Breton Island Airport - Proposed Funding Formula
Inverness Municipality is prepared to invest its share into the capital costs of an airport. The following
chart shows potential funding partners over a two fiscal year period (2015/16 and 2016/17) for the
purpose of discussion. Total eligible costs for Build Canada Fund is $9,080,760 (does not include
$300,000 for land acquisition).
Government Level
Funding Partner
Contribution
Municipal
The Municipality of the County of Inverness
$3,026,920 (33.3%)
Provincial
NS Municipal Service & Relations
Dept of Transportation
Economic Development
$3,026,920 (33.3%)
Federal
Build Canada Fund
$3,026,920 (33.3%)
$9,080,760 (100%)
TOTAL
12.4 Equity / Cost-Savings
There is an approximate $3,000,000 of stakeholder equity in the Cape Breton Island Airport concept to
date. This amount includes the Technical Feasibility Report, acquisition of LiDAR Survey and the
estimated value of the Margaree airstrip reducing the overall project cost (as noted in the Technical
Feasibility Report).
Item
Description
Existing Airfield
Technical Feasibility Report
LiDAR Survey
Total
Developed base and runway
Genivar
Data Acquisition & Procession (25 km2 Area)
Estimated
Costs
$2,850,000
$70,000
$20,500
$2,940,500
36
13.0 NEXT STEPS
The following are considered to be the next crucial steps:
Project Timeline
Project Activity
Immediate
Community Advisory Committee Meeting
Municipal Council Planning Session
Stakeholder Letters of Support
Informal Meetings with Stakeholders
Short-Term
Application & Proposal Submitted
Geo-Technical Work
Description
Timeline
Review Business Concept &
Strategy
Review proposal/ endorsement
of plan
Proposal Executive Summary
Jun 20, 2014
Draft Proposal with letters of
support
Jun - Aug 2014
Build Canada Fund
NS Transportation &
Infrastructure Renewal (NST&IR)
Nov 2014
Update Capital Costs
Nov 2014
Jun 23, 2014
Jul- Sep 2014
Pending Funding Approval
Architectural Drawings
Environmental Assessment
Building Permits
Business Plan/ Marketing Strategy /
Operational Plan completed
Operations Manual & Related Plans
Environmental Assessments
MOU with Community Advisory
Committee
Airstrip Expansion & Infrastructure
Implementation
Request for construction bids
Contractors awarded work
General Manager hired
Building & Equipment
Marketing Materials
Mar 2015 – Sep 2015
Oct 2015 – May 2015
37
Appendix A
Cape Breton Airport on the Cabot Trail
____________________________________________________________________________________
38
Appendix B
General Aviation Demand Forecast Assumptions (Genivar Report)
____________________________________________________________________________________
General Aviation Forecast Assumptions






The golf courses and other tourist facilities will be open 7 months of the year (April to
November), i.e.217 days per year or 31 weeks;
General aviation visitors from Nova Scotia within a 1 hour flight time: 2 per day during weekdays
and 5 during weekends days (Saturday and Sunday);
General aviation visitors from outside Nova Scotia or more than one hour flight: 5 per week end
day;
Average number of passengers per aircraft = 3.5
Average duration of stay: same day for flights less than one hour and 2 days for other visitors.
Based on the examples from Basin Harbour and Southwest Regional Airport, it is expected that
general aviation aircraft will be as detailed in Table 5-6.
Summary of General Aviation Assumptions (7 month season)
General Aviation Projections
Week Days
Weekends
Totals
# of flights/wk
Number of Days per Year
# of flights / year
Aircraft Arrivals – One Hour Flight
Aircraft Arrivals – More than One Hour Flight
Sub-total
Passengers (3.5/arrival)
Duration of Stay (days)
The number of days
Spend per Day per Person
Total Spending
5
155
4
62
310
0
310
1,085
1
1,085
$100
$108,500
310
310
620
2,170
2
4,340
$300
$1,302,000
9
217
270
310
310
930
3,255
5,425
$1,410,500
39
Appendix C
Charter Flight Demand Forecast Assumptions
____________________________________________________________________________________
Charter Flight Assumptions (made in Genivar Report)
Charter flight organized on a periodic basis from Toronto and New York/Boston provided an aggressive
and original marketing strategy offering a Fly-in package including, for example:
o Air travel to and from destination
o A minimum of 3 days stay at a beach or golf resort, including fees, accommodations, meals and
amenities,
o Possible additional activities such as an air or land tour of the Cabot Trail, etc;
o Average 50-seat aircraft
The proposed assumptions for this niche market are the following:
o A 2 flight per week schedule from Toronto and from New York/Boston with a 50 seater aircraft,
minimum 70% occupancy (35 passengers) during a 4 month period starting in 2016 and
increasing gradually to 7 month period in year 5 (2021)
o Given these assumptions, the potential clientele could reach a weekly capacity of 200 passenger
arrivals (includes 2 flights from Toronto and 2 flights New York/Boston) within a 3-year horizon
of opening the airport.
Summary of Charter Flight Assumptions (7 month season)
Charter Flight
Projections
2016
2017
2018
2019
2020
2021
Flights/week
Scheduled – 50 seat
capacity
# of months/week
1
2
3
4
4
4
3.5 mo
15 wks.
15
60%
30
30
450
2 days
$560
4 mo.
17 wks.
34
70%
35
70
1,190
3 days
$560
4.5 mo.
19 wks.
57
70%
35
105
1,995
3 days
$560
5 mo.
22 wks
88
70%
35
140
3,080
3 days
$560
6 mo.
26 wks.
104
70%
35
140
3,640
3 days
$560
7 mo.
30 wks
120
70%
35
140
4,200
3 days
$560
$504,000
$1,000,200
$3,351,600
$5,174,400
$6,115,200
$7,056,000
# of flights/ season
% of occupancy
# of pass/flight
# pass/wk.
Total pass/year
Average stay
Aver spending/day
Annual Revenue
Note: The above chart shows a two-year ramp-up period before getting to the projected 4 flights/year
(Genivar Report). This chart was used for operation projections.
40
Appendix D
Airport Fees Forecast Assumptions
____________________________________________________________________________________
Projected Landing & Overnight Fees
Projected landing and overnight fees generated from General Aviation flights and Charter flights are
based on flight numbers as project in Appendix A and B. The fee structures for landings are estimated at
$75 for smaller aircraft and $200 for charter aircraft. The fee structures for overnights are estimated at
$75 for smaller aircraft and $200 for charter aircraft. Operation revenue generated from landing and
overnight fees is estimated to be $19,725 in first year of operations and increasing to $48,000 in 2021.
Airport Fees / Revenue
2016
2017
2018
2019
2020
2021
# of General Aviation Flights (1 – 9 seat)
# of General Aviation Flights (over 10
seats)
Landing Fees (GA) - $75/aircraft
# of Charters
Landing Fees (Charters)- $200
# of Overnight (15%)
Overnight Fees $75 (GA) or $200
(Charters)
Total
200
17
210
18
220
19
230
20
240
21
250
22
$16,275
15
$3,000
$17,100
34
$6,800
$17,925 $18,750 $19,575
57
88
104
$11,400 $17,600 $20,800
$20,400
120
$24,000
$450
$1,020
$1,710
$3,600
$19,725
$24,920
$31,035 $38,990 $43,495
$2,640
$3,120
$48,000
41
Appendix E
Airport Refueling Forecast Assumptions
____________________________________________________________________________________
Baseline Data for Fuel Sales – General Aviation
The Cape Breton Island Airport has assumed that the increase in General Aviation and fuel sales at the
Port Hawkesbury Airport associated with Cabot Links visitations is transferable to the new airport.
Revenue sources increased proportionally with increased air traffic associated with Cabot Links starting
in 2013. Base line data derived from the difference between 2014 and 2012.
P.H. Airport
2010
2011
2012
2013
2014
Jet Fuel Profit
User Fees
$20,839
$6,543
$24,259
$10,535
$19,823
$14,571
$73,440
$15,976
$107,690
$19,428
Jet Fuel for General Aviation is likely to be sold at a markup of $0.65.
Projections for Charter Fuel Sales
Charter Flight
Projections
2016
2017
2018
2019
2020
2021
# of flights/ season
50%
2,500 li @.$0.20
15
7.5
$3,750
34
17
$8,500
57
28.5
$14,250
88
44
$22,000
104
52
$26,000
120
60
$30,000
Assumptions made:

Aircraft such as the Dash 8 200, 300 or 400 size will require will refuel purchasing the amount of
fuel to get them to the next destination plus alternate and 45 minutes. It is reasonable to
estimate that each aircraft departing of this category would uplift 2,000 to 3,000 litres of jet A1
(Average 2,500 litres)

$0.15 to $0.30 mark-up on fuel (Used and average of $0.20)

50% of flights are factored for refueling
42

Cape Breton Island Airport Proposal

Transcription

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