This guide examines Alberta's tourism industry and provides an in-depth analysis of tourism development in the province. Much of the information needed to perform a comprehensive development analysis is readily available in the public domain.
Basic Components of Development Analysis
As you work through the steps, be sure to keep a journal to keep track of the names and positions of people contacted; collect application forms; and initiate a collaborative relationship with the many agencies you contact.
Defining the Project
Initial Look at Market Supply and Demand
Initial Look at the Development Process
Tourism, Parks and Recreation is responsible for land management planning in parks and protected areas, while all other public lands are managed by Alberta Sustainable Resource Development (SRD), www.srd.alberta.ca. Information on the Environmental Assessment Process (EAP) is available from Alberta Environment: www.environment.alberta.ca or by calling the Alberta Government toll-free line 310-0000 or .
Developing a Business Concept
Examining Options For Land-Based Developments
Resource Assessments
Environmental Assessment Process
Historic Resource Impact Assessments (HRIA)
It is the responsibility of the developer to ensure that the Historic Resources Management - Land Use Planning Department of Alberta Culture and Community Spirit has seen and approved the development proposal. The department has the legislative authority to place a "Stop Work Order" on the project, so it is in your best interest to ensure that the review process and subsequent guidelines are followed.
Aboriginal Consultation Process
The costs of the HRIA and any subsequent remediation or protection during construction shall be borne by the client. It is much easier to relocate a structure at the conceptual stage than at the construction stage.
The Alberta Tourism Recreational Leasing (ATRL) Process
Preparation, Submission and Review of Application The applicant will
Alberta Sustainable Resource Development or Alberta Tourism, Parks and Recreation coordinates the review of the application with the land manager and all other review agencies. The land manager will make a decision on the conditional approval or rejection of the application.
Letter of Intent
Lease Issuance
Detailed ATRL process package and application forms are available from your nearest Country Division office. The ATRL process package and other information on how to start a tourism business is also available and can be viewed at the Alberta Tourism, Parks and Recreation website:.
Commercial Trail Riding
More information on Public Constitution applications can be viewed at: www.srd.alberta.ca.
Leasing in Kananaskis Country
Land-Use Framework
Opportunities within Provincial Parks and Recreation Areas
Depending on the applicability and viability of the proposals received, an agreement may be entered into with one of the proponents. The contract length can be extended to provide an incentive for this private sector capitalization.
Leasing Federal Land
A call for proposals is issued to determine the level of interest in providing this service. If approved, the applicant and the province will enter into an agreement with specific conditions to be applied.
Summary
Information Collection and Evaluation
Project Feasibility
Getting Started
Tourism Investment Symposium, Tourism Investment section of the Alberta Tourism, Parks and Recreation website, attending key tourism investment conferences and events, and organizing tourism investment attraction missions. Munich, Mexico City, Taipei, Seoul and London to distribute information on tourism investment opportunities in Alberta with the goal of attracting foreign investment.
Checklist of Essential Business Research
Essential Research
Travel Alberta is a statutory corporation that markets Alberta as a tourism destination regionally, nationally and internationally. Visit the Travel Alberta industry website: www.industry.travelalberta.com to learn more about the marketing programs available to support tourism operators.
Tourism Market Analysis
Types of Tourism Markets
Demand Analysis
Supply Analysis
Market Evaluation
What is the expected rate of increase in the number of tourists in the area? What are the special attractions in the area that would add to the overall tourism activity or complement your operation.
Tourism Market Data Sources
Other travel research reports are also available with membership.) www.conferenceboard.ca/topics/economics/travel.aspx. Information is available at the provincial level and for six tourism destination regions.) www.tpr.alberta.ca/tourism/statistics/default.aspx. Alberta Transportation compiles highway traffic statistics and publishes them on its website: www.transportation.alberta.ca/3459.htm.
Project Site Evaluation
Each issue focuses on a specific development theme and includes activities of the Tourism Development Branch. In this newsletter you will find information on tourism business development and financing together with significant statistics regarding hotel sector performance, tourism industry trends and market research, information on the aviation industry and an overview of the activities of the Tourism Business Development, Research and Investment department. Many of the permanent installations required by a tourism facility, such as roads and utilities, are the same as those required for any operation.
Location Analysis
Some tourism businesses start with an idea and then look for a suitable location for development, e.g. a developer looking for a suitable site to develop a golf course. Others start with a fixed location that needs an evaluation for a certain project, such as a landowner who decides to develop his rural acreage into a tourism facility. If access is by private plane or helicopter service, the correct licenses can be obtained.
Physical Resource Analysis
What habitat protection is in place to ensure the long-term viability of fish and wildlife.
Infrastructure Needs and Availability
In an urban setting, check with the municipality to determine the cost of connecting to the existing system and the existing development standards such as pipe size requirements. It is very important to confirm the cost and availability of water supply before committing to the site. In an urban setting, it is wise to discuss the project with the municipal engineering department to find out the cost of hooking up to the sewer system.
Building and Land Development Requirements
This information is usually available from the municipality or a local county government, as they use these maps for their planning evaluations. For a list of map dealers in your area, visit the Alberta Sustainable Resource Development Map Distribution Center website: www.srd.gov.ab.ca/informationcentre/. Also, the Alberta Sustainable Resource Development Air Photo Services office can provide a current printout of available aerial photo coverage (with the date and scale) for each regulatory description within Alberta.
Financial Analysis
Financial Analysis – Check Lists
Financial Analysis Steps
The main function of a written cash flow is the ability to provide an estimate of the amount of money needed to fund day-to-day operations. The income statement is a representation of the company's income and expenses over a period of time. A pro forma balance sheet is a snapshot of the company's financial condition at a fixed point in time.
The Bottom Line - Evaluating Business Feasibility
A pro forma balance sheet must be prepared for at least the first three years of operation. It is also recommended to prepare three types of financial statements for the construction/start-up phase prior to the opening of the business. It is important to determine at a very early stage whether you can attract the required debt and equity financing for the project.
Starting a New Business vs. Purchasing an Existing Business
Has the business developed a poor reputation among tourists, among the local business community, or among employees. Are there any land planning, regulatory or environmental issues that may affect the viability of the business in the future. For further information, the prospective buyer should also meet with lenders and other members of the business community.
Approaching Lending Agencies
Additional information on purchasing a business can be obtained through The Business Link website: www.canadabusiness.ab.ca. Complete business plan, including capital cost estimates for facilities (and sources of .. financing) and a projected income and expense statement, projected cash flow statement, and pro forma balance sheets.
The Key Plans
Packaging and Presentation
Business Plan
This section should include a discussion of the developer's background – who is involved, what other business ventures they are involved in, and what their business experience is). a discussion of operational parameters such as working hours, insurance, risk management practices, cash/credit handling, procurement, staff training, etc., covering government and finance permits, construction period and lead time before the development opens its doors. based on detailed human resource requirements. You may decide to create a more detailed human resources plan as a supplement to the business plan.). Detailed examples and worksheets for business plans can be obtained from The Business Link (Canada-Alberta Business Service Centres): www.canadabusiness.ab.ca or
Marketing Plan
The main risks facing your proposed business activity should also be summarized with contingency plans you will adopt to mitigate the negative impact of these risks. Refer to ATPR's Tourism Business Planning Guide and Tourism Funding Sources Guide at: www.tpr.alberta.ca. A section of the marketing plan should generally discuss the timing and shifting of resources and strategy.
Conceptual Development Plan
This draft plan is the basis for obtaining land use approvals and for developing cost estimates used in the financial analysis. Ways to mitigate and minimize negative impacts are outlined as part of the development, community liaison and construction processes. This may be a separate document depending on the scale of your development and the requirements specified for land leasing and/or a development permit.
Development and Licensing Approvals
Anticipating the Approvals Needed
Preparation – Get Your Information Together
Gaining Local Support
Overview of the Development Process
Sequence of Approvals
It is extremely important that potential developers initiate discussions with all approval agencies regarding general feasibility and reactions to the project before committing to developing or purchasing a site. Taking such precautions in the early stages of the project will help avoid having to look for a new location when the project is much further along due to approvals not being granted.
Be Prepared For Setbacks
The Main Players and Areas of Responsibility
General Sequence of Approvals
Permission to carry out work and inspections for compliance are the responsibility of accredited local authorities and agencies. However, federal authorities can rely on the provincial Safety Codes and Inspections Act for the job.
Tourism Projects Development Approval Process
Municipal and Local Approvals
Municipal Development Plan (MDP) and Area Structure Plan
If the developer requires a subdivision, and provided the area is suitable for the development, the subdivision application is submitted to the municipal authority and provisional approval is granted within 60 days. A legal survey and final registration of the subdivision at the Land Transfer Office takes place when all conditions have been met. In addition, a municipality can require that up to 10 per cent of the area is subdivided for park or school purposes.
Appeal Procedures
The Subdivision Process
If the appeal board then rejects the appeal, a further appeal may be made to the Court of Appeal, but only where it involves a question of law or jurisdiction. Tourism development proposals that are either very large or have significant environmental impacts may require the preparation of Environmental Assessment Process (EAP) reports. Instructions for this request will be provided as part of the application and approval process administered by ATPR's Parks Division.
Licensing and Operating Requirements
Division – if the activity is located within a park or protected area managed by the Division. Register with the Workers' Compensation Board (must be done before starting the operation - the responsibility of employers in relation to accident prevention, industrial hygiene and first aid is set out in the Workers' Compensation. Know the detailed requirements that travel agencies and tour companies must meet regarding the net capital value and trust fund requirements of clients' money.
Federal Government Requirements
Insurance
Summary Checklist of Approvals Needed
Construction
Construction and Business Start-Up
Federal Government Agencies
Business Development Bank of Canada
Culture, Heritage and Recreation
Environment Canada
Contacts and Resources
Fisheries and Oceans Canada
Indian and Northern Affairs
Industry Canada
Parks Canada Agency
Statistics Canada
Transport Canada
Provincial Agencies
Service Alberta
Alberta Aboriginal Relations
Alberta Culture and Community Spirit
Alberta Employment and Immigration
Alberta Environment
Alberta Finance and Enterprise
Agriculture Financial Services Corporation
Alberta Health and Wellness
Alberta Infrastructure
Alberta Municipal Affairs
Alberta Sustainable Resource Development
Alberta Tourism, Parks, and Recreation
Alberta Transportation
Other Important Contacts
Tourism Associations and Organizations
Canadian Tourism Commission
Regional Airport Authorities
Tourism Development Guide
Tourism Funding Sources Guide
Tourism Business Planning Guide
