Gold Rush Snowmobile Trail Business Plan

Transcription

1 Gld Rush Snwmbile Trail Business Plan Prepared Fr: ew Pathways t Gld Sciety Submitted By: Cadence Strategies September, 2012

2 TABLE OF CO TE TS Disclaimer... 4 Executive Summary... 5 Intrductin Current Situatin Summary Findings Clintn t 108 Mile Huse Mile Huse t Hrsefly Hrsefly t Likely Likely t Barkerville Target Markets and their Experiential Requirements Summary Findings Overview f Market Research Sectr Research Snwmbiling Travelers Cycling and Muntain Biking Travelers Hiking Travelers Turing Sectr Travelers Fishing Sectr Travelers Visitr Centre Research Carib Chilctin/108 Mile Huse Turism Trends Visitr Centre Statistics Lcal Market Research Estimated Ecnmic Impact Summary Findings Overview f Ecnmic Impact Estimatin Best Practices and Transferable Lessns frm Other Jurisdictins Summary Findings Legislative Framewrk Revenue Generatin Trail Develpment/Maintenance Best Practice Case Studies Trail Develpment/Maintenance Strategies Summary Findings Phase I Pilt Phase Winter 2013/ Phase II Phase III Prepared By: Cadence Strategies/

3 Phase IV 2016 and beynd Marketing and Sales Strategies Summary Findings Phase I Phase II Phase III and Beynd Partnership Opprtunities Summary Findings Partnership Opprtunities Lcal/Prvincial Recreatin Clubs Lcal/Reginal/Prvincial Destinatin Marketing and Ecnmic Develpment Organizatins Funding Organizatins Prvincial Gvernment Gvernance Cnsideratins Summary Findings Funding Cnsideratins Summary Findings Estimated Capital Investments Summary Findings Estimated Annual Operating Investments Summary Findings Revenue Estimates Operating Csts Summary Cnclusins and ext Steps Appendices Appendix A - Characteristics f Snwmbilers Appendix B Estimated Ecnmic Impacts Appendix C Best Practices Case Studies Valemunt Case Study Saskatchewan Case Study Alberta Case Study Ontari Case Study Wiscnsin Case Study Appendix D Ptential Partners Appendix E Estimated Capital Investment Appendix F Trail Maintenance Estimates Appendix G Summary Revenues/Operating Expenses Prepared By: Cadence Strategies/

4 Disclaimer This reprt has been prepared based n a thrugh and diligent examinatin f current data available and n reasnable assumptins. Because market cnditins, including ecnmic, scial and plitical factrs, change rapidly and ften withut warning, any prjectins f future perfrmance are prjectins nly and are nt in any way guaranteed Prepared By: Cadence Strategies/

5 Executive Summary Key findings f this study are summarized belw: Market Research The Gld Rush Snwmbile Trail (GRST) in its current cnditin is nt market ready and requires a phased implementatin f imprvements in rder t begin increasing lcal, reginal and eventually destinatin use and securing the assciated ecnmic benefits frm this visitatin fr the regin. The market research literature reviewed and the lcal interviews cnducted supprt the prpsitin that, with imprvements, the Gld Rush Snwmbile Trail has the ptential t becme a unique and cmpetitive experience fr snwmbilers in the winter, and ff-highway vehicles (OHV ) in the spring/summer/fall thereby generating ecnmic returns fr lcal cmmunities alng the Trail n a year rund basis. The new prpsed marketing name Gld Rush Recreatin Trail (GRRT) captures this fur seasn use, althugh fr legal purpses, the name Gld Rush Snwmbile Trail will be maintained as per current legislatin. In rder t secure these ecnmic returns, investment in trail maintenance and develpment is essential in three primary areas: t create circle turs frm urban centres (Kamlps, Williams Lake, Quesnel, Prince Gerge), t create a cruising crridr fr multi-day turing and t access a series f destinatin play areas, and, t build cnnectrs t these destinatin play areas and t lcal services and amenities such as ldging, fuel, restaurants and retail. It is imprtant t nte that while the specific sectr grups (snwmbiling, quads/atv s/sidexsides, dual sprt) supprt this directin fr the Gld Rush Snwmbile Trail, brader cmmunity supprt has nt yet been tested. While much f the netwrk f trails needed t create the prpsed experience fr target markets is already in place, it will be imprtant t cntinue t reach ut t lcal cmmunities (First Natins and nn-first Natins) t understand hw they wuld like t be invlved in the implementatin f the prpsed business plan. A series f infrmatin sessins fr First Natins is planned fr early Octber and the prpsed Reginal Management Cmmittee structure recmmended belw will allw fr this engagement t ccur. Ecnmic Impact It is pssible t estimate the ecnmic impact pprtunity available frm an investment in the GRRT by utilizing findings frm existing ecnmic impact studies frm a number f jurisdictins thrughut Nrth America. While a mre frmal input/utput mdelling wuld generate mre accurate ecnmic impact assessments fr the GRRT, the applicatin f spending patterns frm ther jurisdictins t estimates f trail user days n a year rund basis with a fcus n snwmbiling and OHV s gives rise t apprximately $17 millin in cumulative direct spending ver a ten year time frame Prepared By: Cadence Strategies/

6 Best Practices/Transferable Lessns Five jurisdictins were selected fr study in rder t identify critical success factrs and transferable lessns fr the Gld Rush Recreatin Trail including: Valemunt, BC Ontari Saskatchewan Alberta Wiscnsin Jurisdictins where snwmbiling is flurishing as an ecnmic driver exist within a legislative framewrk that permits snwmbiling everywhere, except where specifically prhibited. This cntrasts the mdel here in British Clumbia where snwmbiling is nt allwed anywhere except where permitted. In particular, in Saskatchewan all Crwn Land is pen fr snwmbiling and it is permissible t ride n any highway right f way. Rad crssings are legal prvided the sled is registered. In rder t encurage registratin, the registratin fee includes $200,000 f liability insurance. Further liability insurance cverage can nly be secured with valid registratin. In Ontari, legislatin dating t 1973 permits snwmbiles t travel anywhere in the Prvince except where prescribed. British Clumbia must cnsider a legislative framewrk that is mre permissive in terms f recreatinal vehicle use f rad rights f way, rad crssings etc. Prvided registratin is mandatry alng with liability insurance, this mre pen framewrk will supprt the develpment f trail use and the assciated ecnmic benefit arising frm cnvenient access t accmmdatins, fuel, restaurants, retail etc. Jurisdictins typically generate revenues fr reinvestment in trail maintenance and develpment frm either vehicle registratin fees that are cllected by gvernment and redirected t the prvincial/state rganizatin (Saskatchewan/Wiscnsin) r frm sale f trail passes. Wiscnsin als receives funding frm the State Gas Tax assciated with estimated snwmbile gas cnsumptin by residents and visitrs. The success f mandatry trail permits depends either upn an extensive enfrcement netwrk such as the Ontari/Wiscnsin mdel r a limited number f access pints t the trail system as is the case in Valemunt. Given the unlimited number f access pints t the Gld Rush Recreatin Trail, similar enfrcement f mandatry trail pass purchases wuld be virtually impssible. The Gld Rush Recreatin Trail must be supprted by a cmbinatin f revenues arising frm Prvincial registratin and licensing f utdr recreatinal vehicles and frm nn-mandatry trail pass sales. It is critical that the ORV and NRRA legislatin currently being drafted generate a pl f funds fr trail develpment and maintenance as well as address current challenges assciated with rad use, rad crssings and cnflicts with extractive industries such as mining and frestry. The Gld Rush Recreatin Trail must ffer experiences based arund cmmunities as well as cnnectins between cmmunities. These experiences shuld include access t destinatin play areas as well as circle turs easily accessed frm reginal ppulatin bases Prepared By: Cadence Strategies/

7 Prpsed Cncept The prpsed cncept fr the GRRT upn implementatin f the phased trail develpment and maintenance strategies is a grmed and maintained cruising crridr frm Clintn t Barkerville that ffers multi-day itineraries as well as preferred access t a series f high-value destinatin play areas (lakes, alpine areas etc.). The GRRT will be the primary rute fr reginal ppulatin bases drawing frm Prince Gerge, Williams Lake, Quesnel, Kamlps, Clearwater, the Okanagan and the Lwer Mainland t access tw circle turs encmpassing the nrthern regin arund the GRRT (Prince Gerge/Williams Lake/ Quesnel/ Wells/Barkerville) and the suthern regin arund the GRRT (Clintn/70 Mile/ Green Lake/100 Mile). Trail Develpment/Maintenance Strategies In rder t create this market-ready experience in a manner that will fulfill the demands f mtrized recreatinalists frm lcal and reginal markets, a series f phased imprvements in the GRST and its maintenance are recmmended. Recmmended new trail develpment is minimal. Rather, cnnectins t existing trail systems are made in three phases alng with cnnectins t services and amenities fund in cmmunities alng the GRST. Phase I is a pilt phase which leverages the strengths f the trail systems already managed by the actively engaged 100 Mile/Green Lake/Interlakes Snwmbile Clubs and creates a circle tur in the suthern regin. Lessns frm this pilt phase will be applied in subsequent phases. Key elements f Phase I include: Cnnect existing trails managed by 100 Mile/Green Lake/Interlakes Snwmbile Clubs (see assciated mapping) Cntinue spine f GRST by addressing bridge crssing at Likely Frmalize legal cnnectins t cmmunities t permit access t services/amenities including fuel, accmmdatin, restaurants (see assciated mapping) Grm and maintain fficial trails t market ready standard Ensure apprpriate signage is in place Phase II expands the GRRT system by cnnecting t existing trails arund Williams Lake as well as cnnecting t trail systems in and arund Kamlps/Clearwater. Key elements f Phase II include: Imprved cnnectin frm Te Nee Ah lake ldge nrth t Barkerville and Wells. Cnnect GRRT t Williams Lake via existing trails thereby expanding the system Cnnect GRRT t Kamlps and Clearwater via existing trails further expanding the system Grm and maintain fficial trails t market ready standard Identify / cnfirm high value riding areas alng the GRRT t diversify prduct mix Ensure apprpriate signage is in place Prepared By: Cadence Strategies/

8 Phase III further expands the experiences available t riders f the GRRT by cnnecting t Quesnel and Prince Gerge via existing trails. This cmpletes a nrthern circle tur experience. Key elements f Phase III are as fllws: Cnnect GRRT t Quesnel and Prince Gerge via existing trails Grm and maintain fficial trails t market ready standard Ensure apprpriate signage is in place With the GRRT system cmplete by the end f Phase III, nging phases require maintenance f the experience t market ready standards. Key elements f Phase IV and beynd are: Grm and maintain fficial trails t market ready standard Ensure apprpriate signage is in place Recmmended maintenance standards are tw-tiered. Initially, existing prvincially recgnized trail systems will be cnnected thrugh a series f trails presently utilized but nt well maintained. These cnnectr trails will be jined and maintained t a base standard t allw safe passage, marketing and prmtin f cmmunity and club cnnectivity n a mre frmal basis. Once established, an expansin f the trail systems width, grming frequency and quality will increase with usage and funding. Marketing/Sales Strategies A series f phased marketing and sales investments will be required t build awareness and interest in the GRRT in identified target markets. These effrts will run in parallel t trail develpment and maintenance t ensure that prmises made in the market place relating t visitr experience, will in fact be delivered upn n the grund. Marketing and sales effrts will fcus upn the highest return strategies including: An engaging and interactive web presence that has high search engine placement Active scial media engagement (Facebk, Twitters, YuTube) with cmmunities f OHV enthusiasts New trail map cllateral (hard cpy and dwnladable) Leveraging f lcal club effrts and a presence at club events A prpsed festival in winter and then subsequently a secnd festival in summer, in rder t create a fcal pint f interest and excitement that will then build demand thrughut the seasn Develpment f a mbile applicatin fr trail riders Partnership Opprtunities A fundamental cntributr t the success f the GRRT will be its ability t leverage resurces fr trail develpment and fr marketing with ther private and public sectr rganizatins in such a way that all partners receive benefit. A preliminary assessment f partnership pprtunities has been cnducted and cnsiderable interest and supprt fr the GRRT identified. Partners have been categrized as fllws: Prepared By: Cadence Strategies/

9 Lcal and prvincial recreatin clubs/assciatins representing a variety f ptential trail users; Lcal, reginal and prvincial turism marketing and ecnmic develpment rganizatins respnsible fr the prmtin f visitr experiences; Ptential funding partners The Prvince f British Clumbia varius Ministries Transprtatin, Rec Sites & Trails, Jbs, Turism & Innvatin There is strng interest in wrking cllabratively t develp the GRRT as a majr crridr cnnecting cmmunities and play areas and in frmalizing ne r mre circle turs fr the enjyment f club members and visitrs t the regin. The majrity f clubs perate with very limited funding and while they are willing t wrk cllabratively and can ffer sme vlunteer time and assistance fr trail maintenance and develpment, there is a need t find external funding t ensure quality and cnsistency f experience fr all users. The majrity f clubs hst several events each seasn fr their members and nce the GRRT is further develped, they wuld include a prtin f the trail in their event rster t build awareness and use. Mst clubs wuld als be interested in participating in a summer r winter festival and in wrking tgether t create an enjyable event fr their members and visitrs t the regin. Lcal, reginal and prvincial marketing rganizatins welcme the cncept f a market-ready trail experience fr visitrs and wuld include the GRRT in their marketing strategies prmting it n their websites, in their media utreach and in ther prmtinal vehicles that they utilize (reginal travel guides etc.). They wuld further supprt a new summer and winter festival and prmte it if the events were f sufficient quality and scale t attract vernight visitatin t their destinatin/regin. A number f funding partnerships are available t supprt the early investments in capital and perating csts including cntinued supprt frm the Carib Chilctin Beetle Actin Cmmittee (C-CBAC), Nrthern Develpment Initiative Trust (NDIT), Western Ecnmic Diversificatin (WED) and the Cmmunity Infrastructure Imprvement Fund. Prvincial supprt and crdinatin is required that crsses a number f prvincial Ministries including Transprtatin, Jbs, Turism & Innvatin and thers. Legislatin is required t enfrce registratin/licensing f OHV s with a prtin f the funds cllected reinvested in trail develpment and maintenance. Rad crssings, use f resurce rads, rail crssings, use f Crwn land, liability t lcal clubs are all challenges that are currently limiting the ecnmic benefits arising frm the GRRT and ther trail netwrks thrughut the Prvince. Gvernance Cnsideratins In rder t successfully raise funds and implement the recmmendatins f the Business Plan fr the GRRT and secure the $17 millin in direct ecnmic benefits that are estimated t accumulate t businesses in the regin ver the next 10 years, it will be necessary t establish a leadership entity and Prepared By: Cadence Strategies/

10 gvernance mdel. Key characteristics f the prpsed gvernance mdel include the fllwing: Private sectr and business led t ensure implementatin t secure maximum ecnmic benefit ccurs Prvincially crdinated t ensure that challenges assciated with rad crssings, trail develpment and maintenance etc. are expeditiusly addressed Gegraphically representative f the regin frm Clintn t Barkerville withut being verly cumbersme in size Strng representatin frm lcal recreatinal clubs wh will lead the majrity f n-the-grund effrt supprted by external funding and resurces A GRRT Reginal Management Cmmittee (RMC) is prpsed that will be Chaired by Prvincial Rec Sites & Trails and includes representatin frm five distinct chrts each f which wuld wrk n lcal pririties and wuld becme actively engaged as the prpsed phasing in their jurisdictin is underway. These chrts are prpsed t be: Clintn, 70 Mile 100/108 Mile, Lac La Hache, Canim Lake Williams Lake, 150 Mile Hrsefly, Likely Quesnel, Wells, Barkerville Membership in each chrt wuld include lcal turism peratrs, lcal recreatinal clubs, lcal First Natins and lcal municipal/reginal district gvernments. Funding Cnsideratins Eventually it is anticipated that the Prvince f British Clumbia will enact legislatin mandating registratin and licensing f OHV s and that a prtin f fees cllected will be reinvested in trail develpment and maintenance thrughut the Prvince including the GRRT. Hwever, until such legislatin is in place, it is necessary t cnsider ther surces f funds t supprt the implementatin f the GRRT Business Plan. A number f funding partners may be apprached fr ne-time supprt including NDIT, C-CBAC and WED. Bth reginal marketing rganizatins (Carib Chilctin Cast Turism Assciatin (CCCTA) and Nrthern BC Turism Assciatin (NBCTA)) can be apprached fr marketing supprt. Hwever, a sustainable surce f funds must als be identified t supprt nging trail maintenance and prmtin nce the initial investments have been made t create a market-ready prduct and heighten market awareness. The lessns frm ther jurisdictins indicate that the nly ther viable surce f revenues fr the GRRT beynd mandatry registratin and licensing wuld be the vluntary sale f trail passes. Multiple access pints and lack f enfrcement mechanisms d nt supprt mandatry trail pass sales. While there will be sme resistance t purchasing trail passes particularly by lcal resident users, nce the quality f experience is established and mre reginal visitatin is achieved, trail pass sales are estimated t generate apprximately $200,000 per year n a year rund basis Prepared By: Cadence Strategies/

11 Summary Cnclusins/Next Steps The GRRT has the ability t becme a self-sustaining trail system that will generate significant ecnmic benefit fr cmmunities in the Carib-Chilctin regin. Hwever, early investments in capital imprvements ($140,000) and 4 years f perating subsidies ($566,000) must be supprted befre this selfsustaining capacity is reached in Year 5. As well, it shuld be nted that breakeven is nly just achieved by Year 5 n significant surpluses are anticipated. Therefre, shuld rider days decline belw estimates r payment participatin levels nt be achieved, revenues will nt be sufficient t cver estimated perating csts. Ideally, as nted abve, the Prvincial gvernment will mve twards a trail develpment and funding mdel that incrprates OHV registratin and licensing and utilizes a prtin f fees cllected fr investment in the prvincial trail system including the GRRT, thereby reducing the investment that must be supprted by vluntary trail pass sales The fllwing next steps are recmmended: Frmatin f a Reginal Management Cmmittee fr the GRRT that includes representatin frm private businesses, lcal recreatin clubs and lcal cmmunities including First Natins alng the GRRT in a series f five chrts all chaired by the Prvince Cntinued funding supprt frm New Pathways t Gld Sciety t permit the Reginal Management Cmmittee t engage cnsulting resurces t execute next steps in the GRRT Business Plan n behalf f the Cmmittee Further engagement and infrmatin sharing with First Natins cmmunities have traditinal territries alng the trail t build supprt and understand hw they wuld like t participate in the gvernance structure and nging business mdel (meetings planned fr Octber, 2012) Applicatin fr funding supprt frm ptential partner rganizatins including NDIT, C-CBAC and WEDC fr Phase I pilt imprvements in the area frm Clintn t 108 Mile Huse in rder t create the suthern circle tur and begin prmtin f the GRRT t target markets thrugh website develpment, scial media engagement, new cllateral, winter/summer festivals etc. Cntinued advcacy fr Prvincial legislatin t address OHV registratin and licensing, use f rads/trails and the creatin f a prvincial fund fr investment in trail develpment and maintenance Site inspectin f entire length f the GRST t cnfirm cst assumptins underlying capital and perating cst estimates cntained herein Prepared By: Cadence Strategies/

12 Intrductin The Gld Rush Snwmbile Trail (GRST) was frmally endrsed by the prvincial gvernment in 1999 during a Premier s Summit n Ecnmic Develpment Opprtunities in the Carib-Chilctin Regin f British Clumbia. The intent was t create a snwmbile trail netwrk with the bjective f linking smaller, islated cmmunities thrughut the regin. The GRST is lcated in suth-central British Clumbia, extending frm the Village f Clintn t the District f Wells. Its prpsed alignment is apprximately 463 kilmeters in length incrprating the cmmunities f 70 Mile Huse, 100 Mile Huse, Hrsefly and Likely. Investments have been made in trail imprvements including a $600,000 investment partnership between New Pathways t Gld Sciety and the District f 100 Mile Huse which secured prvincial and federal funding t clear the existing trail f blwdwn and dead/dying muntain pine infested trees frm 70 Mile Huse t just suth f Hrsefly in 2009 and Despite this investment, the GRST currently experiences lw levels f awareness and visitatin and assciated ecnmic benefits t cmmunities alng the trail have been mdest. The GRST has the ptential t cntribute t lcal ecnmies in the regin prvided the experiential needs f a grup f targeted users are clearly defined and then delivered upn. As well, the GRST must be effectively prmted and marketed t grw visitatin and secure these returns fr lcal cmmunities. All f these activities require sustainable lng-term funding and a frm f gvernance t guide implementatin f a set f clearly defined strategies. With funding supprt frm the Carib-Chilctin Beetle Actin Calitin, Cadence Strategies and were engaged by New Pathways t Gld Sciety t develp a business plan fr the Gld Rush Snwmbile Trail that includes strategies fr its lng term sustainability, adaptatin and success as a multi-use trail and reginal ecnmic catalyst. T achieve lng term success the fllwing principles and activities were incrprated in the business planning prcess: Market research based understanding f ptential users ffering the highest ecnmic returns t lcal cmmunities and definitin f their experiential needs; Translatin f the needs f these targeted users int management and maintenance strategies fr the GRST including cnsideratin f trail heads, grming, maintenance, trail amenities etc.; Identificatin f resurces required t deliver the defined experience t targeted users; Recmmendatin f a gvernance structure fr GRST management t facilitate implementatin f recmmended strategies; Identificatin f sustainable lng term funding surces including cnsideratin f partnerships, licensing fees, user fees and ther funding pprtunities; Targeted marketing and prmtinal strategies t build awareness, cnsideratin and visitatin The business plan that fllws is designed t address the fllwing prject bjectives: T develp a Business Plan fr the Gld Rush Snwmbile Trail T identify key strategies fr the develpment and marketing f the trail including target markets, prmtin and marketing Prepared By: Cadence Strategies/

13 T identify key strategies t ensure maximum ecnmic benefit can be derived within the cmmunities alng the trail T identify key strategies fr maintenance, grming, signing and trail head develpment T identify key strategies t prmte the trail as a multi-use fur seasn trail, including marketing t ther seasnal recreatinal clubs T identify grups respnsible fr the current and future management f the trail T prmte and increase the usage f the Gld Rush Snwmbile Trail T surce and identify funding strategies t aid in the abve bjectives with the final gal f managing a financially sustainable trail system Cadence Strategies (Suzanne Denbak) and (Dug Washer) wuld like t acknwledge and thank Grd Rattray and Steve Law representing New Pathways t Gld Sciety fr their cntinued guidance thrughut this prject. As well, the advice and input received frm the Steering Cmmittee in the June 21, 2012 review is gratefully recgnized. Current Situatin On February 11 t 14, 2012 Dug Washer f inspected the trail in the cmpany f Steve Law, DWB Cnsulting Services. The tur began at Clintn and was cnducted primarily by 4x4 truck with limited snwmbile access due t pr snw cnditins. The fllwing summarizes key findings and implicatins fr business plan develpment arising frm an assessment f the current cnditin f the Gld Rush Snwmbile Trail. Summary Findings The trail in its current cnditin is nt market ready and requires a phased implementatin f imprvements in rder t begin increasing lcal, reginal and eventually destinatin use and securing the assciated ecnmic benefits frm this visitatin fr the regin. The fllwing Ggle Earth maps n the disc accmpanying this reprt utline the prpsed phased implementatin f future prduct and prmtinal effrts: Reginal Map - identifies current ruting f the GRST, cmmunity cnnectrs and reginal marketing area. Phase 1 Map The Gld Rush Snwmbile Trail Current Ruting with prpsed intercnnectivity t existing managed snwmbile trail systems and targeted marketing and develpment znes. Phase 2 Map Urban areas and required cmpletin f the GRST and cnnectins t existing reginal trail infrastructure; lcal high value riding areas and brader marketing utreach znes including Williams lake, Kamlps and Clearwater. Phase 3 Map Existing managed trails, ptential destinatin play areas and cnnectivity t larger cmmunities including Prince Gerge, Quesnel; expanded reginal marketing fcus t the Okanagan. Phase 4 Map - Expanded marketing zne with identified managed trail netwrks and target market ptential. Identifies multi use and recreatin trail systems in the brader regin Prepared By: Cadence Strategies/

14 Managed Rec. Trails Map - Identifies all prvincially managed recreatin trails by subregin and activity. Ppulatin Base Map - Identifies majr cmmunities and ppulatin base fr the reginal marketing zne. Winter-Fest Map - Prpsed hst facility and lcatin fr a winter based festival utlining activity listing and trail cnnectivity. Prduct Prm Map (Sample) - Highlights fcused amenities, play areas and trails fr the Clintn trail riding area and can be replicated fr all regins as required. Clintn t 108 Mile Huse The GRST begins in Clintn, ppulatin 578, which ffers a number f quality services and amenities fr recreatinalists but des nt ffer reliable snw cnditins. Trail heads and staging areas require sme level f maintenance fr parking and access t trails. This segment f the trail is used by the 100 Mile Snwmbile Club, the Interlakes Snwmbile Club and the Green Lake Snwmbile Club. The trail is primarily rad based and there is significant blwdwn f beetle kill rendering the ff-rad trail very slw and cumbersme in areas. As a result, trail usage is variable with snwmbilers utilizing nearby rads and alternate rutes that are easier t traverse at speed. Furthermre, active use by the mining and frestry sectrs creates challenges assciated with trail cnditins n shared rads that require reslutin. 70 Mile Huse ffers mre reliable snw cnditins and easier access between the GRST and twn althugh a small feeder rad wuld be required. The GRST des cnnect t 100 Mile Huse, ppulatin 1,885, services and amenities directly and imprved cnnectins are required t secure greater usage and assciated lcal spending. Near the trail in this regin are a number f play areas including the Green Lake and Interlakes areas fr snwmbiling in winter and hiking and fishing in the spring/summer/fall. The elevatins f the Marble Range ffer pprtunity fr a muntain riding experience hwever the Marble Range Park plan wuld require mdificatin t allw snwmbile use. Carsn Muntain permits snwmbiling currently. This terrain will appeal t Off Highway Vehicle (OHV s) riders in summer as well. There is ptential t develp a suthern circle tur cnnecting the Trail t Kamlps where there is a large ppulatin base and strng interest in bth snwmbiling and OHV Activities. This area presently ffers an extensive netwrk f prvincially designated trails as identified in the mapping which cnnects t larger cmmunities and therefre is f high value t incrprate in the marketing and prduct mix fr the regin. This area als acts as the gateway t the entire GRST and is therefre wrthy f special recgnitin frm a marketing and prmtinal perspective. Services and amenities are nted n the Ggle Earth mapping f the area. Reference map Prduct Prm Map (Sample) Prepared By: Cadence Strategies/

15 108 Mile Huse t Hrsefly The GRST in this regin suffers frm the same challenges assciated with tree fall n the ff rad trails and shared use n the rads. Hwever, this area ffers the greatest number and highest quality f services and amenities including accmmdatins such as Hills Health Ranch, 108 Mile Ranch and Ten-ee-ah Ldge. Other services and amenities are nted n the mapping fr this regin. Cnnectins frm the GRST t 108 Mile Huse and t these accmmdatins require imprvement in rder t secure greater usage and assciated returns frm lcal spending. The Lac La Hache rad crssing as it exists tday presents sme risk t snwmbilers crssing the highway but pprtunities t imprve this crssing d exist in the vicinity. Lcal stakehlder invlvement wuld be required. The bridge crssing at Likely is presently a challenge but lcal residents are engaged and wrking tward a slutin with lcal land wners and gvernment in identifying alternative rutes t the existing bridge crssing ver Hrsefly River alng the Upper Hrsefly Rad. Williams Lake, ppulatin 11,150, is hme f the Williams Lake Pwder kings (WLPK s). This larger market f snwmbilers and OHV rs currently accesses the GRST ccasinally via a netwrk f unmarked frest service rads and trails. There is ptential t create a nrthern circle tur encmpassing Williams Lake t 100 Mile Huse in the Suth and t Likely and the Spanish Muntains and Yanks Peak in the Nrth t where they currently transprt their snwmbiles fr day trips. The Yanks peak riding area is presently managed by the Williams Lake Pwder Kings wh are als signatries f the management agreement respnsible fr the maintenance f the GRST. Existing and ptential destinatin play areas in this segment f the trail include:yanks Peak, Spanish Muntains and Bald and Angus peaks t the nrth en rute t Barkerville. Reference maps Phase 1 Map The Gld Rush Snwmbile Trail Current Ruting with prpsed intercnnectivity t existing managed snwmbile trail systems and targeted marketing and develpment znes. Existing and ptential destinatin play areas - Yanks Peak, Spanish Muntains and Bald and Angus peaks t the nrth en rute t Barkerville Managed Rec. Trails Map - Identifies all prvincially managed recreatin trails by subregin and activity. Hrsefly t Likely The trail frm Hrsefly t Likely is primarily rad based and experiences similar challenges with trail maintenance and lack f grming. Amenities and services ffered in this segment f the trail are minimal and are nted n the mapping. Basic fd services, fuel and accmmdatin are available in bth cmmunities. This sectin f trail is well suited as a scenic, primary access rute t high value play areas just nrth f Likely. Access frm Williams Lake t Yanks Peak is via Likely where fuel and services are available. Snwmbiles are transprted via truck and then ff laded t access Yanks Peak riding area which is maintained by the Williams Lake Pwder Kings Prepared By: Cadence Strategies/

16 Access frm Quesnel is als thrugh the Likely cmmunity. Destinatin play areas that culd be accessed include: Yank s Peak and Bald Muntain Riding areas which have mixed terrain types frm frested trails t sub alpine with limited alpine terrain available. Spanish Muntains ffer a mre diverse experience with limitatins due t a caribu recvery management plan in place with the lcal clubs. Reference maps: Phase 1 Map The Gld Rush Snwmbile Trail Current Ruting with prpsed intercnnectivity t existing managed snwmbile trail systems and targeted marketing and develpment znes. Ppulatin Base Map - Identifies majr cmmunities and ppulatin base fr the reginal marketing zne. Managed Rec. Trails Map - Identifies all prvincially managed recreatin trails by subregin and activity. Likely t Barkerville The GRST frm Likely t Barkerville is nt currently defined but trails in the area are managed by the Williams Lake Pwder Kings t Yanks Peak and beynd t Barkerville thrugh the Bald Muntain Play area. Barkerville represents a ptential pprtunity fr bth winter and summer use by cnnecting this netwrk f trails t larger cmmunities t the nrth such as Prince Gerge. Access frm Prince Gerge is 190 km s via Quesnel t Wells. Currently, snwmbiles are transprted via truck, unladed at the trail heads t ride varius destinatins such as Bald Muntain r Yanks Peak. Existing and ptential destinatin play areas include Yank s Peak and Bald Muntain Riding areas which have mixed terrain types frm frested trails t sub alpine with limited alpine terrain available. Spanish Muntains ffer a mre diverse experience with limitatins due t a caribu recvery management plan in place with the lcal clubs. The Barkerville heritage site ffers anther reasn t ride, particularly fr the family market frm neighburing urban centres such as Williams Lake, Quesnel and Prince Gerge. Caribu Recvery area maps identify specific areas prhibited t snwmbiling in this regin which are in part, mnitred and managed by the snwmbile clubs in the crridr. A cmprehensive fur year ( ) summary f the Quesnel Highland Snwmbile Muntain Caribu Mnitring Prject is available fr reference n management strategies ging frward. This area has an extensive netwrk f existing trails and is ne f the higher value play areas in the regin. Fr this reasn, cnsideratin f this area in the earlier stages f prduct develpment and marketing initiatives is recmmended Prepared By: Cadence Strategies/

17 Reference maps: Phase 1 Map The Gld Rush Snwmbile Trail Current Ruting with prpsed intercnnectivity t existing managed snwmbile trail systems and targeted marketing and develpment znes. Ppulatin Base Map - Identifies majr cmmunities and ppulatin base fr the reginal marketing zne. Managed Rec. Trails Map - Identifies all prvincially managed recreatin trails by subregin and activity. Target Markets and their Experiential Requirements Summary Findings The market research literature reviewed and the lcal interviews cnducted supprt the prpsitin that, with imprvements, the Gld Rush Snwmbile Trail has the ptential t becme a unique and cmpetitive experience fr snwmbilers in the winter, and Off- Highway Vehicles (OHV s) in the spring/summer/fall thereby generating ecnmic returns fr lcal cmmunities alng the Gld Rush Snwmbile Trail n a year rund basis. Fr marketing and prmtinal purpses, it is prpsed that the Trail be renamed the Gld Rush Recreatin Trail (GRRT) in rder t reflect this year rund use. Hwever, fr legal purpses, its current name wuld be maintained as it is referred t the Gld Rush Snwmbile Trail in supprting Prvincial legislatin that wuld be difficult t amend. In rder t secure these ecnmic returns, investment in trail maintenance and develpment is essential in three primary areas: t create circle turs frm urban centres (Kamlps, Williams Lake, Quesnel, Prince Gerge), t create a cruising crridr fr multi-day turing and t access a series f destinatin play areas, and, t build cnnectrs t these destinatin play areas and t lcal services and amenities such as ldging, fuel, restaurants and retail. There is als limited ptential t develp summer muntain biking and winter Nrdic experiences althugh extensive trail systems already exist and are likely sufficient fr current demand. Hrseback riding and hiking experiences are nt cnsidered target markets as turism prviders in these markets already have extensive private trail systems that are cnsidered adequate. It is imprtant t nte that while the specific sectr grups (snwmbiling, quads/atv s/sidexsides, dual sprt) supprt this directin fr the Gld Rush Recreatin Trail, brader cmmunity supprt has nt yet been tested. While much f the netwrk f trails needed t create the prpsed experience fr target markets is already in place, it will be imprtant t cntinue t reach ut t lcal cmmunities (First Natins and nn- First Natins) t understand hw they wuld like t be invlved in the implementatin f the prpsed business plan. A series f infrmatin sessins fr First Natins is planned fr early Octber and the prpsed Reginal Management Cmmittee structure recmmended belw will allw fr this engagement t ccur Prepared By: Cadence Strategies/

18 Overview f Market Research Market research available thrugh a variety f surces was reviewed and analysed fr any implicatins relevant t the sustainable develpment f the Gld Rush Recreatin Trail. This research included activity fcused market segments such as snwmbiling, fishing, hiking and turing (see Sectr Research) as well as statistics related t travelers in the regin tday (see Visitr Centre Research). In large part, the literature reviewed is f relevance t market-ready prduct that is attracting destinatin visitrs. As nted in the current situatin analysis fr the Gld Rush Snwmbile Trail, the trail itself is nt yet a market ready experience fr destinatin visitrs. Since much f the available research will nt have implicatins fr the Gld Rush Recreatin Trail until it becmes market ready and attracts lnger haul visitrs, the literature review was supplemented with interviews with lcal turism peratrs and recreatin clubs in rder t mre clearly understand the lcal perspective and t assess the pprtunity t build lcal and reginal awareness and usage. Key findings frm the Sectr and Visitr Centre market research are included belw alng with assciated implicatins fr the GRRT. These findings reflect bth an understanding f the research itself alng with knwledge f the GRRT arising frm the current situatin analysis. Highlights f interviews with lcal businesses and rganizatins are als summarized (See Lcal Research). Sectr Research Turism British Clumbia has analysed several activity based sectrs that are ptentially relevant t the Gld Rush Recreatin Trail. The fcus f this research is n the Canadian and US markets as these markets represent the greatest prprtin f visitatin t British Clumbia. Highlights f this research are prvided belw. Snwmbiling Travelers Highlights f Sectr Research: 5% f Canadian and American travelers t BC participated in snwmbiling activities; snwmbiling was a trip mtivatr fr nly 2% f Canadian and American travelers t BC Bth US and Canadian markets indicate a male skew fr thse participating and mtivated by snwmbiling activities; 67% f Canadian travelers mtivated by snwmbiling activities were male; 60% f Americans wh participated in snwmbiling while n a trip were male All age grups are represented until reaching 55 years then significant drp ff in participatin levels; Canadians are smewhat yunger than US cunterparts with larger prprtin in the year range Largest prprtin f US day use snwmbilers were years; while vernight turing frm the US market was in the majrity years f age Affluent bth Canadian and US snwmbilers reprt annual husehld incmes >$100,000 Snwmbilers are frequent travelers cmpared t general ppulatin f visitrs t BC Other ppular activities fr Canadian snwmbilers include swimming in lakes, city strlls, mtr bating; American snwmbilers als visit amusement parks, sun bathe, sit n a beach and swim in the cean A detailed descriptin f snwmbiling travelers is fund in Appendix A t this reprt Prepared By: Cadence Strategies/

19 Implicatins fr GRRT While this market research wuld indicate that the market is a yunger, male demgraphic, in reality this segment is mre likely t pursue muntain riding pprtunities. The experience n the GRST is mre likely t appeal t a reginal family market and an lder male demgraphic (35-55 years) interested in cruising, staying vernight in cmfrtable accmmdatin, frequenting lcal pubs/restaurants etc. Cycling and Muntain Biking Travelers Highlights f Sectr Research: Male skewed (especially in thse whse trip mtivatin is cycling as ppsed t thse wh participate in cycling nly as part f their trip); this male dminance is even mre prnunced in visitrs frm the US vs. Canada Canadian cycling travelers are yung largest grup is 18-34; 85% are under 55 Largest age segment frm the US is years; 75% are under 55 years Larger prprtin f US cycling travelers were 65 years+ cmpared t Canadians Canadian and US cycling travelers are high incme earners ($100,000+) Mst have cmpleted pst-secndary educatin Muntain biking in particular attracts a yung, male target frm the Canadian market are als affluent and educated Overnight turing frm the Canadian market is als strngly male dminated, yung, affluent and educated The US market is als strngly male dminated fr vernight turing and muntain biking; less s fr same day excursins Of the estimated 7 millin US travelers t BC in the study perid, 14% participated in a cycling activity and 5% stated it was their primary mtivatin fr at least ne vernight trip Cycling travelers are frequent travelers cmpared t general ppulatin f visitrs t BC Other ppular activities fr cycling travelers include swimming in lakes, city strlls, visiting natinal r prvincial parks, sunbathing, sitting n a beach, hiking; US cyclists were als interested in visiting histric sites and buildings Implicatins fr GRRT The turing cyclist requires a cmpact and cnsistent cycling surface and is nt suited fr the GRRT. Muntain bikers will accept a Frest Service Rad fr a prtin f their trip but nly t access the single-track that they are seeking. Since a high percentage f GRRT is rad based, it des nt create a desirable muntain biking experience; the prtin f the trail that is ff-rad is nt suitably maintained fr cycling experiences and wuld require significant single-track develpment. There are ther, mre appealing muntain biking destinatins cmpared t the GRRT thrughut the Prvince fr destinatin travelers. The lcal and reginal markets in Prince Gerge, Quesnel, Williams Lake, Kamlps all have extensive muntain biking trails very clse t hme see Lcal Research. Hiking Travelers Highlights f Sectr Research: Canadian pleasure travelers wh have been t BC and participated in hiking activities in the study perid were slightly mre likely t be female (52%) than male; the reverse is true frm the US where hiking participants where 54% male Mtivated hiking travelers frm Canada are equally male/female; mtivated American hiking travelers are mre likely male (64%) Mtivated hikers are yung years Higher percentage f American hikers are lder than their Canadian cunterparts Prepared By: Cadence Strategies/

20 Mderate t affluent incmes; well educated Overnight backpack trips attract a yunger, male dminated market frm bth Canada and the US 36% f Canadian pleasure travelers t BC participated in hiking and 10% were mtivated t take their trip fr hiking activities Participatin and mtivatin rates were similar fr American pleasure travelers t BC Mtivated hikers are mre frequent travelers than the general ppulatin f visitrs t BC Other ppular activities fr Canadian and US hikers include city strlls, visiting natinal/prvincial parks, swimming in lakes, visiting histric sites Implicatins fr GRRT - high percentage f trail is rad based and des nt create a desirable hiking experience; trail that is ff-rad is nt suitably maintained fr hiking experiences and des nt ffer sufficient destinatin appeal t justify trip. Existing turism peratrs ffering hiking experiences utilize their wn trail system which is cnsidered sufficient see Lcal Research. Turing Sectr Travelers Highlights f Sectr Research: Turing travelers are defined as thse wh have taken an rganized r guided grup tur r self-guided tur while n a trip Amng Canadian turing travelers in the study perid, a slight majrity was female; the reverse is true frm the US where the slight majrity is male Apprx. 1/3 f Canadian turing travelers were between years f age American turing travelers were generally lder with ¼ aged 65 r lder ¾ f bth Canadian and American turing travelers were adult nly husehlds Affluent and well educated frm bth markets Self guided turs are typically yunger; guided turs ften lder/senirs Participatin rates in turing activities are high amngst Canadian pleasure travelers t BC (37% include a guided tur and 44% include self-guided turing in their trip itinerary) American participatin rates are even higher with 54% including guided turs and 44% including self-guided turs n their trips Turing travelers are frequent travelers relative t general ppulatin f visitrs Other activities enjyed include city strlls, visiting histric sites/buildings, visiting natinal/prvincial parks and natural wnders Implicatins t GRRT summer turing travelers alng Highway 97 will nt currently be attracted t the experience ffered alng the GRRT as they d nt generally travel with apprpriate equipment. The appeal f the GRRT in the near term is activity fcused i.e. snwmbiling, side x sides/quads. Eventually, nce the ecnmic impact f these activity based visitrs reaches a critical level, it is likely that new business ventures will pen ffering ½ day and full day side x side turs, equipment rentals etc. t thse traveling alng the highway n a turing vacatin. Fishing Sectr Travelers Highlights f Sectr Research: Freshwater anglers: Are male dminated particularly thse wh travel specifically t fish vs. thse participating in fishing while n a trip t BC Prepared By: Cadence Strategies/

21 Are generally >45 years f age (sme yunger Canadian demgraphics in the age grup) Are frequent travelers several trips per year Are affluent (if they are traveling t their fishing destinatin vs. reginal anglers) Are largely frm BC (78%); thers are frm Canada and US (Washingtn, Califrnia and Oregn) small numbers frm verseas Have a lng histry f fishing in BC Canadians rate experience highly; Americans less s Use friends recmmendatins t influence travel chices Implicatins t GRRT There is sme ptential t incrprate angling int spring/summer/fall prmtin f the GRRT(and ice fishing int winter experiences) particularly t thse visitrs frm lcal and reginal markets wh are als using quads/side x sides t access the destinatin play areas. Marketing effrts targeting anglers shuld recgnize the lder, male skew in demgraphics. Visitr Centre Research Carib Chilctin/108 Mile Huse Turism Trends Turism BC cnducted a study t prfile visitrs wh use the Suth Carib Visitr Centre at 100 Mile Huse in terms f traveler and trip characteristics. Travelers were interviewed at bth the Visitr Centre and at 108 Mile Huse Heritage Site. The Value f the Suth Carib Visitr Centre Study, March 2007, Turism BC indicates that travelers at bth the Suth Carib Visitr Centre and 108 Mile Huse are fairly similar with respect t their market rigins. At the Suth Carib VC, 55% f travelers were frm British Clumbia, 21% were frm internatinal cuntries ther than the US, 13% were frm ther prvinces in Canada and 12% were frm the US. At the 108 Heritage Site, the prprtin f travelers frm British Clumbia (52%) and frm ther prvinces in Canada (10%) was slightly lwer, whereas, the prprtin f travelers frm ther internatinal cuntries (23%) and the US (14%) was slightly higher. At bth the Suth Carib VC and 108 Heritage Site, the majrity f travelers frm prvinces utside f British Clumbia riginated frm Alberta (60% Suth Carib VC; 54% 108 Heritage Site) and Ontari (22% Suth Carib VC; 25% 108 Heritage Site). Fewer travelers were frm Saskatchewan, Quebec, Manitba, Newfundland/ Labradr, Nva Sctia, Nrth West Territries and the Yukn. The largest prprtin f US visitrs is frm Washingtn (28% Suth Carib VC; 35% 108 Heritage Site), Oregn (16% Suth Carib VC; 14% 108 Heritage Site) and Califrnia Prepared By: Cadence Strategies/

22 (13% Suth Carib VC; 15% 108 Heritage Site). US visitrs als came frm thirty-ne additinal states, mst ppular f which were Arizna, Alaska, Clrad, Texas, Idah and Hawaii. At the Suth Carib VC and 108 Heritage Site, mst verseas travelers were frm Eurpe (96% fr bth lcatins), while fewer were frm Asia/Pacific (3% Suth Carib VC; 4% 108 Heritage Site). With respect t age and educatin, there were n practical differences between respndents at the Suth Carib VC and 108 Heritage Site. At bth lcatins, ver tw-thirds f travelers were 45 years f age r lder (70% Suth Carib VC; 69% 108 Heritage Site). Three-fifths f respndents at each lcatin (61% Suth Carib VC; 59%108 Heritage Site) had at least a diplma r a university degree. At the Suth Carib VC, the highest prprtin f travelers came frm husehlds with annual incme f $25,000 t $49,999 (28%). Over a third (36%) f travelers at 108 Heritage Site came frm husehlds with annual incme f $65,000 t $99,999. The average travel party size at the 108 Heritage Site is 3.1 peple with 32% traveling with children. The majrity f thse surveyed were traveling fr leisure purpses (76%) r t visit friends and family (22%). Mst travelers used car/truck/mtrcycles (84%) r RV/Camper (15%) as their primary mde f transprtatin. 59% f travelers surveyed at 108 Heritage Site had a primary destinatin within British Clumbia; 13% were turing with n primary destinatin and 28% had a primary destinatin utside f BC. Their primary mtivatin fr travel is t spend quality time with family and friends (44%); t rest, relax and recuperate (16%) and t see natural wnders and imprtant natural sites (13%). Travelers at 108 Heritage Site spend 19 days away frm hme including 12 days in BC and 4 days in the Suth Carib. The majrity f travelers (69%) were flexible regarding trip activities in that they had less than a quarter f their trip activities in Suth Carib planned befre arriving in the regin. 39% were very flexible with time in the regin and culd extend their stay by a day r mre while 35% were inflexible. The mst frequently cited activities by visitrs at the 108 Heritage Site included visiting a museum, heritage r histric site (79%), visiting parks (72%), participating in sft adventure activities (70%). In terms f interest in activities n future trips, travelers were mst interested in visiting a museum, heritage r histric site (74%), visiting parks (73%), participating in sft adventure activities (73%), shpping fr lcal arts and crafts (53%) and visiting a farm, farmers market, rchard r fd prcessr (48%). Implicatins fr the GRRT turing travelers thrugh the regin have sme flexibility in their itineraries t incrprate an experience alng the GRRT such as an ATV tur but they are primarily lder and seeking sfter adventures. As nted abve in the Turing Traveler Sectr Research, this is nt a primary market fr the GRRT. Visitr Centre Statistics Visitr statistics were reviewed fr Visitr Centres lcated at Wells, Williams Lake, Quesnel, and 100 Mile fr 2012 Year t Date. In all cases, the majrity f nn-lcal visitrs were frm the BC market, fllwed by Eurpean visitrs Prepared By: Cadence Strategies/