This case was written by Wes Spring for the purpose of entering the 2000 Aboriginal Management Case Writing Competition. TITLE: BBP Native American Adventure Camp INTRODUCTION Chief Charles Tailfeathers is sitting with a friend over a coffee. "I am not sure what to do. Things don't look good for the future" he says, referring to the BBP Native American Adventure Camp. "Numbers are declining, I don't know if we can afford to stay in business much longer". The camp has been around for 8 years and was very successful in the first 5 years. In the last 3 years, however, the success of the camp has been very limited and has been experiencing losses. Charles would like to see the camp remain in business as it brings both money and a sense of pride to the reserve in which he grew up. However, the pressures of an upcoming election are on his mind as well. BACKGROUND Chief Charles Tailfeathers founded the camp after graduating from the University of Lethbridge in 2000. In that year, Charles Tailfeathers ran for office and was elected to the position of Chief. A major portion of his platform was the promise of more jobs and better conditions on the reserve, a feat which he accomplished with the foundation of the BBP Native American Adventure Camp. The Camp is a tourist attraction directed at the German market. Chief Tailfeathers got the idea from a friend in University who told him of his German relatives and their love for both the outdoors and Native American culture. Charles decided to create a camp in which he could introduce native culture to tourists while at the same time providing the desired outdoor experience. After some collaboration with his friend, he worked out a business plan. The camp was a success in its first year. THE BBP NATIVE AMERICAN ADVENTURE CAMP The camp hosts predominantly German guests and exposes them to native culture. It is headquartered on the Blood Reserve in Southwest Alberta, but it includes lands of the Piegan Indian Reserve in Alberta and the Blackfoot Indian Reserve in Montana. BBP is officially a Blood Reserve business. It delegates a percentage of profits to the other reserves for their efforts to the camp. Each reserve receives 10% of revenues after expenses to the travel agencies are deducted. The combination of Native American culture and the outdoor life is a big hit with the Germans.
Germans arriving in Calgary International Airport are picked up by members of the Blood Indian Reserve. From there, they are bussed back to the reserve where they can shower, eat and rest. The camp begins the very next day on the plains of the Blood Reserve. Teepee's are already set up in a traditional fashion. After the guests perform a sweat with the native camp guides, they spend the night around a fire as the elders tell stories of their people and the land. The guests and the guides spend the night out in the teepee's. The next day begins with the guests dressing in traditional costume and getting their faces painted. After everyone is dressed and ready to go, they set out on horseback. From herein the camp is an outdoor adventure with no ties to the 'civilized' world (the camp guides have a cell phone in case an emergency situation arises). The routes they follow change somewhat from year to year. The activities basically all remain the same. With the native guides to aid them, the guests experience the outdoors to the fullest degree. They fish, set up and take down camp, ride horses, go by foot, and canoe in the rivers. Along the way, they are taught about the importance of the land and how the native people would hunt for their food. Part of the camp takes place on the Blackfoot Reservation in Montana. Chief Tailfeathers wanted this addition to the camp to rekindle the relationship between the Bloods of southern Alberta and the Blackfeet of Montana, as they were formerly one nation. Also, the beautiful landscape of the Montana Reservation is breathtaking for the German guests. At this part of the camp, the guests receive lessons on the Blackfoot culture as well. They make weapons and art using the traditional methods under instruction from the elders. This addition adds extra expenses to the camp in that the guests must be bussed back and forth across the Canada-U.S.A. border, but Tailfeathers feels that it is worth it. When arriving back home to the Blood Reserve, a party awaits them and a feast is held. The Blood Reserve holds a pow-wow and many of the guests take part. A graduation ceremony takes place and the guests are given an Indian name by the elders. The party usually carries on into the early hours of the morning. Altogether, the guests spend 13 days outdoors. The next five days is up to the guests' discretion to do what they want. The guests tend to either want to go fishing and camping, or go to Calgary. For the guests that go to Calgary, they are bussed into Calgary and picked up five days later and taken to the airport with the other guests. Chief Tailfeathers encourages the guests that stay to interact with the community members, and often they will participate in events together, something which is beneficial to both the people of the Blood Reserve and the guests. MARKETING The BBP Native American Adventure Camp is targeted at German tourists. Non- Germans who have participated in the camp have been from the surrounding area who
have heard about it through hearsay. BBP has deals with travel agencies throughout Germany to promote the camp. BBP pays the travel agencies 5% of revenues for promoting them. Posters and brochures are sent to the travel agencies. The price is given to the agencies in Canadian dollars and they translate it into Euros. BBP has little say in how it is promoted, it is up to the individual agencies to promote how they like. Some agencies are more well-known for supplying larger numbers of tourists. As well, BBP has a web page set up to advertise its camp. GERMANY Germans are notorious for taking vacations. Germans are among the highest paid workers in the world. With almost 90 million people occupying a country with one-third the land area of Alberta, it is no surprise that Germans enjoy their vacations. Germans receive a 13 month salary and average 27 days a year holidays. As of 2002, Germany's official currency is the Euro, which it shares with the other signatories in the European Union. Despite Germany's healthy economy, some of the lesser performing countries have caused the Euro to fluctuate in the recent years. This has, at times, caused much market speculation for foreign investors. ACCOUNTING Revenues are earned in two ways: 1) Camp fees. This amounts to $6,000 per person for the three weeks. Three camps a year are held in June, July and August. 2) BBP owns a store on the Blood Reserve. The store was initially opened to sell artifacts to the guests before they leave and return home. However, its popularity over the years has grown and as a result is open year round. People come from all over to purchase Indian artifacts. It is run very informally with little procedure for inventory. The cashier records purchases on a piece of paper which is totaled at the end of the week Along with artifacts, the store sells pop and small food items. The main expenses to the business is a bank loan for the bus, gas and tune-ups for the bus, transfer payments (to other reserves), and food for the guests. Many of the smaller things such as paint, cell phones, pop, clothing, etc. are all lumped together in the miscellaneous category. To prevent any inefficiencies, many people are given signing power on BBP cheques for miscellaneous expenses. The major expenses can only be signed by Charles Tailfeathers. THE FUTURE The upcoming election was on Charles's mind. He knew that the man running against him was using the losses and poor financial stability of the BBP Native American Adventure Camp as part of his campaign. Charles didn't want to the camp to expire and was torn
between his office and the camp. He felt that it brought employment, recognition and a sense of pride to the Blood Reserve. However, if things were to continue as they were, he would have no choice. APPENDIX 1 BBP Native American Adventure Camp Number of Guests per Year, 2000 to 2007 Year June July August 2000 30 30 30 90 2001 30 30 30 90 total 2002 30 30 30 90 2003 30 30 30 90 2004 30 27 25 82 2005 26 18 12 56 2006 25 17 14 56 2007 21 18 15 54 x 222 200 186 608 APPENDIX 2 BBP Native American Adventure Camp Summarized Income (Loss) Statements, 2000 to 2007 2000 2001 2002 2003 2004 2005 2006 2007 Sales 540,000 540,000 540,000 540,000 492,000 336,000 336,000 324,000 Cost of Sales 27,000 27,000 27,000 27,000 24,600 16,800 16,800 16,200 Gross Margin 513,000 513,000 513,000 513,000 467,400 319,200 319,200 307,800
Operating Expenses Admin. Expenses Net Income (loss) 308,400 305,400 316,400 330,400 311,120 240,960 243,960 241,120 140,200 139,955 139,405 139,245 134,800 103,600 102,985 100,750 64,400 67,645 57,195 49,355 21,480 (25,360) (27,745) (34,070) Other Income* 37,000 42,000 47,500 41,000 29,000 26,450 22,400 17,800 Total Net Income# * BBP store # Before Tax 101,400 109,645 104,695 90,355 50,480 1,090 (5,345) (16,270) APPENDIX 3 BBP Native American Adventure Camp Schedule of Operating and Administrative Expenses, 2000 to 2007 2000 2001 2002 2003 2004 2005 2006 2007 OPERATING COSTS: Food 194,400 194,400 194,400 194,400 177,120 120,960 120,960 123,120 Gas & Repairs 31,000 27,000 34,000 47,000 49,000 52,000 51,000 53,000 Wages 61,000 61,000 61,000 61,000 61,000 47,000 50,000 46,000 Miscellaneous 22,000 23,000 27,000 28,000 24,000 21,000 22,000 19,000 Total Operating Costs: 308,400 305,400 316,400 330,430 311,120 240,960 243,960 241,120 ADMINISTRATIVE COSTS: Transfers 102,600 102,600 102,600 102,600 98,400 67,200 67,200 64,800 Amortization 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 Insurance 6,400 6,400 5,800 5,800 5,800 5,800 5,000 5,000 Office & Legal 1,200 955 1,005 845 600 600 485 950 Total Admin. Costs: 140,200 139,955 139,405 139,245 134,800 103,600 102,985 100,750