The "M.V. Fintry Queen" Executive Summary - Business Plan 2017

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1 The "M.V. Fintry Queen" Okanagan Lake Boat Company Inc. For information purposes only: DRAFT Jan 2017 Executive Summary - Business Plan 2017 The M.V. Fintry Queen is a 325 passenger ship and regional tourist attraction on Okanagan Lake in British Columbia, Canada. Permits and plans are proceeding in cooperation with municipal, district, provincial and federal governments to construct commercial landing sites throughout the South Okanagan, to provide a scheduled passenger service and transportation link between the communities, parks, wineries and resorts. The Fintry Queen will surround it's passengers with the landscape of the Okanagan Valley, creating lifetime memories for thousands of travelers, experiencing the history of the paddlewheel ships and first settlers to the region. BUSINESS STRENGTHS The largest commercial vessel on Okanagan Lake... carries 325 passengers. Established business tradition... offering lake cruises for more than 50 years, Proven history averaging 30,000 passengers annually. Recognized historical image & tourist attraction. Formerly licensed for 225 Patrons "A" Pub and 280 Patrons B Dining Lounge. The ship will become a resource for residents of the South Okanagan, a world class attraction for banquets and weddings, for conferences and sporting events. The ship will create jobs, be an economic generator for public services and be a value-added partner in the development of the regional tourism plan.

2 SERVICES The ship contains over 9000 sq ft of deck space on 3 levels, with 5 distinct function areas to host multiple functions at the same time, while leaving common facilities accessible for all 325 passengers aboard. On the Upper Deck, there is a covered outdoor seating area, Sun Deck, barbeque, snack bar and kids playroom. The ship has successfully hosted conferences, banquets and weddings for up to 325 passengers, with a Food Primary liquor license for 280 patrons and a Liquor Primary license for 225 passengers, where minors were permitted. A complete mechanical refit was undertaken between to Transport Canada standards. Two fuel efficient turbo diesel engines power the vessel at an average cruising speed of 6-8 knots. Formerly designed as a car ferry, the unique hull shape enables her to get close to shore to utilize a bow boarding ramp where there are no docking facilities.

3 THE MARKET The Fintry Queen will create memorable experiences for the million travelers and tourists who visit the South Okanagan region each year, providing food services, entertainment and transportation, catering to travel groups, weddings, banquets and commercial travelers, while visiting the parks, wineries, resorts and communities situated along the shoreline, similar to the historic paddlewheel services, while sharing in the experience and splendor of the spectacular Okanagan landscape. According to a Tourism BC study on visitors to the Okanagan Valley (OCCP published 2004), 83% of the annual visitors are traveling in a car, most are staying in hotels and the most popular activities are water based, followed by visiting orchards, farms and wineries. Respondents indicated their most important positive image of the Okanagan Valley was the scenery, landscapes and the climate, while the biggest negative was the traffic. Initial operations will focus on serving the principal communities of Summerland, Naramata and Penticton, with long-term plans to extend the range. Sailing time from Penticton to Peachland is approximately 3 hours with another 2 hours to Kelowna. The ship has the distinct ability to move to its market, landing at communities up and down the length of the 80 mile long lake, hosting special events. KICKININEE PARK ANCHORAGE An application is underway to locate a moorage buoy approximately 2000 ft offshore from the Kickininee Parks area, to safely anchor the vessel during construction and to use as a temporary holding area, in the event that wind, waves or ice may restrict access to shore landing facilities. There are a limited number of safe anchorage sites on Okanagan Lake for a vessel the size and mass of the Fintry Queen (at 155 ft long x 44 ft wide, rated at 580 tonnes). The ship has traditionally been secured close to shore between fixed pilings. At present, she is safely anchored off-shore near the north end of Okanagan Lake, sheltered from strong prevailing winds and waves by a large headland, similar to the protection advantage available at the Kickininee Park site.

4 SUMMERLAND LANDING A proposal is being prepared to build a walkway, boardwalk and landing site utilizing an existing rock groin near the Community Heritage Pier. The site is sheltered from prevailing winds, with proximity to vehicle parking and utility services. Traditionally the ship operated 3-4 scheduled daily cruises. From Summerland, travel time across the lake to the community of Naramata would be less than 30 minutes, The City of Penticton is an hour's cruising time to the south. Summerland would be the embarkation point for travel northwards to Okanagan Mountain Park, wineries and other communities. NARAMATA LANDING The Fintry Queen will connect the community of Naramata with the South Okanagan, creating benefits for local residents, businesses and travelers. The former CNR Wharf and walking pier could be utilized with the addition of a loading gate and several sets of off-shore piles to safely secure the ship while loading. Sailing schedules would be developed with the involvement and input of the community. PENTICTON LANDING A lease agreement was signed with the City of Penticton in 2014 to build a landing facility adjacent to the Kiwanis Pier. Dock plans, environmental permits, civil and electrical engineering were completed. Financing was delayed and the initial agreements with the City have now lapsed. The City will be initiating a Parks Master Plan in 2017, which will consider future and potential uses for commercial access to Parks. The Kiwanis Pier location represents the only navigable access to the City shoreline fronting Okanagan Lake.

5 SCHEDULES The following chart provides an illustration of how travelers could utilize the vessel on a typical 1-3 hour sightseeing circle tour of the South Okanagan. Passengers boarding from downtown Penticton, would cruise 1 hour north to Naramata, where they could disembark to visit the wineries or parks, then re-board later in the day as the vessel circles around again, for the return trip home. Tour groups would cross the lake between Naramata and Summerland to continue their journey. Special departures in the early hours from Summerland would carry 200+ hikers and bikers to Okanagan Mountain Park, returning in the late evening, under the moonlight. Cruising may be limited to "dockside" in the first year, as we complete renovations, licenses and approvals. The ship would become an "Ogopogo Museum", restaurant, banquet and meeting facility. Year 2 Schedules will offers 2-3 daily departures from Summerland, departing at 12:Noon, 3:PM and 7:PM, with Dance Cruises on Friday and Saturday nights, providing non-stop circle cruises along the shoreline. Schedules would start on the Victoria Day May weekend and continue through to the October Wine Festival. Five different cruise schedules with landings in Penticton and Naramata, were developed to estimate departures, passenger counts and operations based on annual calendars and seasonal holiday patterns,. Schedule Departures Charters Operating Hrs

6 PASSENGERS Passenger estimates have been based on historical records over a 10 year period from and the log books recovered from 2006 to The 10 Year passenger average between ,415 The highest recorded passenger count was in ,164 Projections for the operating period forward for are: Passenger Count Estimates Year 1 22,545 Year 2 28,160 Year 3 32,566 Year 4 33,395 Year 5 35,508 For comparison, the Kettle Valley Steam Railway is a regional tourist attraction, located on the upper-bench lands above the town of Summerland, BC. The KVR operates an historic steam train on a 1 hour ride, with 2 departures daily, 5 days/wk + holidays, from the Victoria Day May holiday to the September Labor Day Weekend. The KVR, operating from a remote location, has averaged 30,000 passengers annually over the last 5 years. PASSENGER RATES The Fintry Queen will be competitively priced with existing tourist related attractions located in Penticton and the South Okanagan region. Attraction Adults Seniors Youth Children under 12 Kettle Valley Railway $24.50 $22.50 $19.50 $13 Loco Landing Play Area $37 All day $10 per $10 per $10 per Casabella Princess $25 $20 $12.50 $10 Canal River Raft $12 return $12 return $12 return $12 return For the income projections used in the revenue models, the average ticket price starts at $16.00 in Yr 1: Cruise Tickets Prices Average Price Children under 3 Free Year 1 $ Children 12 and under $12.00 Year 2 $ Seniors & Youth $18.00 Year 3 $ Adults $20.00 Year 4 $ Saturday Night (3 Hr. Cruise) $25.00 Year 5 $ 18.00