Licence Application Decision Other PDV New Application # 14-15 Applicant VAGO, Elizabeth Trade Name (s) Address Current Authorization (s) Application Summary Date Published in Weekly Bulletin Submitters (and representatives) Board Decision EV Tours 26-72 Dallas Road, Victoria BC V8V 1A2 None New Special Authorization (Reference: Section 26 of the Passenger Transportation Act) New passenger directed vehicle service in Capital Regional District with 1 vehicles Rates (Section 24 of the Passenger Transportation Act) Hourly Rates. January 28, 2015 Innotec Enterprises Inc. dba LA Limousine Regent Limousine Service Ltd. FOUND, Sandra dba Victoria s London Taxi Tours Ascot Limousine Services Ltd. The special authorization is approved. Terms and conditions of licence are approved as set out in the application summary. Rates sought by the applicant are approved as set out in the application summary. Decision Date March 30, 2015 Panel Chair William Bell I. Introduction EV Tours (EVT) was registered as a sole proprietorship on February 28, 2013 and was formed as a tour guide business to provide customized services to a higher end clientele. This application is for a PT licence with a Special Authorization: Passenger Directed Vehicle. The applicant seeks to operate 1 vehicle with the capacity to carry 6 to 11 passengers plus a driver within the Capital Regional District (CRD). Page 1 Passenger Transportation Board PDV Decision
The applicant indicates that it will operate a new 7-passenger Chrysler Town and Country van in providing the service. II. Background The applicant is seeking a special authorization licence to allow the operation of business vehicle to conduct her specialized tours for small groups. She plans to cater to groups who are looking for an in-depth personalized approach catering to their direct interests and needs. Material submitted in support of the application included the following: PDV Vehicle Proposal Public Need Indicators Hourly Charter Rates Disclosures of Unlawful Activity and PDV Rules Bankruptcy Business Plan Disclosures of Passenger Financial Information Transportation Ownership Because of several fitness and operational related issues raised by submitters to this application, the applicant was presented with several questions. The responses to these queries are outlined below in Section IV of this decision. III. Relevant Legislation Division 3 of the Passenger Transportation Act (the Act ) applies to this application. The Act requires the Registrar of Passenger Transportation to forward applications for Special Authorization licences to the Passenger Transportation Board (Board). Section 28(1) of the Act says that the Board may approve the application, if the Board considers that: (a) there is a public need for the service the applicant proposed to provide under any special authorization. (b) the applicant is a fit and proper person to provide that service and is capable of providing that service, and (c) the application, if granted, would promote sound economic conditions in the passenger transportation business in British Columbia. I will consider each of these points in making my decision. Page 2 PDV Decision Passenger Transportation Board
IV. Rationale and Submissions (a) Applicant s Rationale The applicant seeks to offer guided personalized and customized sightseeing tours to upperend clientele. The applicant claims there is a market gap for high-end travellers that want a behind the scenes customized experience. Tours can be selected from a list of pre-planned packages or fashioned based on customers interests and specific instructions. The applicant claims that this service is under-represented. The applicant s multi-language proficiencies, notably her fluency in Spanish, will allow a connection with foreign and Latin America tourist markets. The applicant plans to cater to small groups who are looking for an in-depth personalized, approach catering to their direct interests and needs. The focus of the service is more on tourism and specific discretionary tour itineraries. Tours that are not a package type tour, and are designed to appeal to the fully independent travellers (FIT). High-end customers who are looking for special behind the scenes tours over that of large group tour operators and also that of limousine companies. (b) Submissions There were 4 submitters to this application: Innotec Enterprises Inc. dba LA Limousine Regent Limousine Service Ltd. FOUND, Sandra dba Victoria s London Taxi Tours Ascot Limousine Services Ltd. The major issues cited by the submitters are summarized as follows: EVT has operated for some time as a passenger directed service without proper authority. Therefore, the public need for the service has been created in an improper manner. Examples of EVT website and on-line testimonials dated between 2012 and 2015 were provided. Page 3 PDV Decision Passenger Transportation Board
There has been a decline in business and while growth is possible operators must stay viable year-round. Even though there is a claim of more tourists coming to Victoria, the big tour bus companies with General Authorization licences put on more buses to adapt to the demand. EVT wants to be legal so it can assemble at Ogden Point for cruise ship business. There are too many General Authorization (GA) and Special Authorization (SA) licences in the Victoria market. The application will have a negative impact on existing business. Bona-fide limousine operators have been subject to unfair competition by GA operators. c) Applicant s Response The applicant in response to the submitters makes the following arguments: Tourism experts agree the Victoria tourism market is strong and growing. EVT is looking to fill and address a market gap in providing customized private tours for small groups. EVT is targeting mid-to-upper end clientele who are constant travellers seeking extraordinary personal experiences. Travellers who place great importance on experiencing authenticity. EVT is ethical and has not deliberately operated outside the law. It was unaware of legal requirements until it considered purchasing a vehicle. Since its application, it has pulled down its web site and ceased all marketing activities pending approval of its application. It desires to be fully compliant with all the legal requirements. The focus of its service is not a limousine one and, therefore, not standing at Ogden Point. In response to a Board query the applicant presented the following clarifications regarding its application: EVT has conducted business openly registering with Tourism Victoria, establishing a web site, registering with Destination BC, and actively marketing with tour providers, concierge networks and travel agents. The applicant, at no time, was aware she required a special passenger transportation licence to operate a tour guiding business. This requirement was discovered at a Victoria Tourism mixer when she began exploring the purchase of a business vehicle. Page 4 PDV Decision Passenger Transportation Board
In 2012 the applicant became a driving instructor and decided to establish her own tour guiding company. It conducted the first tours as a local guide withtoursbylocals.com (ToursByLocals) a on-line worldwide marketplace for setting up customizable private tours. In 2013, the applicant established EVT as a sole proprietorship and conducted tours in rented vehicles and buses where she acted as a step-on guide and walking tour guide. At this point, the applicant was quite dedicated to building a web site, networking, marketing and research. In this year 95% of its tours came from ToursByLocals. In 2014, the business enjoyed its first year of success leading to the desire to purchase its own vehicle. In establishing its tours, EVT invests considerable time in researching history, nature, geography, First Nations, gardens in the Victoria area. EVT confirmed that is has a Municipal Business Licence with the City of Victoria. The Board gives more weight to submissions that back up general claims with facts or details. I have considered the submissions and the responses in my review of this application. V. Reasons for the Board s Decision (a) Is there a public need for the service that the applicant proposes to provide under special authorization? The Board expects applicants to show that there is a public need for their proposed service. They should give the Board information that is factual and objective. This may include information that shows: People will use the service you want to provide People and businesses will refer people to your service People cannot obtain the services you are offering The market is underserved or not served by the type of service you will be provide Evidence of public need indicators that could be provided might include: User support statements letters or e mails from people who would use the service or refer the service Signed contracts Page 5 PDV Decision Passenger Transportation Board
Booking requests The applicant included tourism information from Tourism BC that indicates 2 trends: 1. travel consumers seek experiential, life enriching experiences involving culture, nature and the outdoors and learning. 2. FIT travel is a growing trend visitors want to explore new places without the constraints of group travel. FIT visitors pre-purchase a planned driving itinerary involving several locations or purchase a multi-day single destination or may simply book individual travel services either in advance or once in the destination. The applicant also provided information regarding tourism statistics that show Victoria receives 3 million visitors each year and is the second largest private sector industry in Greater Victoria. Further that 200 cruise ships bring 500,000 passengers each season. A Canadian Tourism Commission 2014 Tourism Snapshot included demonstrates Victoria is a microcosm of the larger tourist tends and the business opportunity to offer small, behind the scenes customized tours for FIT travellers looking for personal, one on one experiences with their tour guide. The information also indicates that travellers from the USA represent 75% of total non-resident travel to B.C. and that 2 emerging markets are Mexico and Brazil. The applicant included the following letters in support of public need: A letter from the President and CEO of Tourism Victoria states There is a vibrant tourism economy in Victoria and providing an alternative tour option, such as a private tour guide, is healthy for the customer. Elizabeth s personal touch on each tour and ability to speak multiple languages allows people to explore the Greater Victoria area perhaps in a way they would not have the opportunity to with others. Private tours providing passenger transportation have been very successful in other countries and would promote sound economic conditions in tourism in B.C. A letter from the Concierge with the Fairmont Empress indicates that it receives distinguished guests from all over the world who prefer a personalized and private tour experience. The letter indicates the applicant s multi-functional language service has fulfilled this need and would engage her services again. A letter from ToursByLocals Unique Travel Adventures indicates EVT has consistently provided exceptional service and expresses that it has a demand for multilingual type of service the applicant is proposing. Based on its projections it approximates contracting EVT for 50 tours in the 2015 tourist season. Page 6 PDV Decision Passenger Transportation Board
One letter from Destination BC confirms the active participation of the applicant in the HelloBC listings program and one from a past client indicates the use of the applicant services again. The applicant has sufficiently demonstrated there is a demand for the discretionary service proposed using 1 vehicle. I am satisfied that there is a growing demand for new types of tour services, catering to the fully independent traveler. However, to establish a distinction between the applicant s services from that of standard limousine services, I am setting a service limitation in the applicant s licence. All EVT services must be pre-arranged and provided to passengers seeking customized, locally guided tours. I find sufficient evidence and information to show that an established customer base has been demonstrated. I am satisfied that there is a public need for the proposed service using 1 vehicle. (b) Is the applicant a fit and proper person to provide that service and is the applicant capable of providing that service? The Board looks at fitness in two parts: (i) is the applicant a fit and proper person to provide the proposed service; and (ii) is the applicant capable of providing that service? The fit and proper test relates to such matters as the conduct and character of an applicant and whether the applicant s proposed operations are structured or organized in such a way that the applicant will be able to meet its obligations as set out in the Passenger Transportation Act and Regulations. It also includes the requirement to keep care and control over the operations conducted under the licence and to ensure that the drivers in regard to the Passenger Transportation Regulation operate vehicles properly. With regard to the second portion of the fitness test, applicants must submit information and evidence that demonstrates their capability to manage the proposed service. Business plans and financial statements are often a main source of this information. Indicators that may guide the Board in making its decision include whether the applicant has the experience and transferable skills to manage the proposed service, whether the applicant shows understanding of what is needed to manage the proposed service, and whether the applicant Page 7 PDV Decision Passenger Transportation Board
has the resources to sustain operations throughout the implementation phase and to continue after becoming fully operational. The disclosure forms of Unlawful Activity and Bankruptcy and Passenger Transportation Ownership signed by the applicant indicate no discrepancies. The applicants NSC certificate indicates Satisfactory-Unaudited. The applicant has provided an outline of her work experience. The applicant states she has extensive business experience as a retail and wholesale business owner that catered to hotels and restaurants and as a tour guide that conducted hiking expeditions in Mexico. Her more recent work history is that of a driving instructor and tour guide. The applicant holds a Class 4 Drivers Licence, Driver Training and First Aid Certification. Although the applicant has not had previous direct transportation related management experience, it is my opinion that the skills acquired driving and managing personnel are transferable to this proposed operation. Included was information on vehicle safety policy, inspection and maintenance and the hiring, training and development of driver/tour guides. A Business Plan and financial information were also provided with the application documents. Documents demonstrate that the applicant has researched the requirements of operating the proposed service and has adequate resources to sustain its start up and seasonal operation. The applicant is a member of Tourism Victoria and Destination B.C. and indicates it has well developed concierge networks in Victoria, Vancouver and Seattle and plans to market her services using these relationships and will attend tourism workshops like those in Mexico with the ever growing Latin-American tourism market. I also reviewed the assumptions behind the Cash Flow Projections for the service and the marketing plan and find the reasoning reasonable and sound. The applicant will use a concierge network, a dedicated website, industry memberships, travel agents and tour operators, presentations and attendance at trade workshops, etc. In regard to the submitters statements about the alleged illegal operation by the applicant I note that there is no record on file of any convictions related to an illegal operation and insufficient evidence to make a determination on this point. Further, I am satisfied with the actions taken by the applicant since she became aware of her need for appropriate licencing authority. Page 8 PDV Decision Passenger Transportation Board
I find that the applicant is a fit and proper person to provide the service and is capable of providing the service. (c) Would the application, if granted, promote sound economic conditions in the passenger transportation business in British Columbia? The Board looks at the economic conditions issue from a wide-ranging view. The economic conditions of the transportation business in British Columbia are considered ahead of the economic and financial interests of an individual applicant or operator. The Board supports healthy competition. It Board discourages competition that could unduly harm existing service providers. The applicant, in applying for the requested authorization, is responding to a need and changes within the tourism industry The applicant s proposed service intends to meet the specialized tour requirements of a very specific segment of passengers. The applicant will provide this service in a growing and changing tourism marketplace. The rates proposed are within industry norms. The discretionary aspects of the service should have a minimal negative effect on other segments of the passenger transportation business particularly with the service limitations I have applied to the licencing. I find that approving the application would promote sound economic conditions in the passenger transportation business in B.C. VI. Rates The rates are approved as set out in the application summary VII. Conclusion For the reasons above, this application is approved in whole. I establish the activation requirements and the terms and conditions of licence that are attached to this decision as Appendix I. I establish the rates that are attached to this decision as Appendix II. These form an integral part of the decision. Page 9 PDV Decision Passenger Transportation Board
Page 10 PDV Decision Passenger Transportation Board
VAGO, Elizabeth EV Tours Appendix I Licence Required to Operate Vehicles Approval of application may expire The Registrar of Passenger Transportation must issue the applicant a licence before the applicant can operate any vehicles approved in this decision. 1. The applicant must activate the vehicle within 6 months of the date of this decision. 2. If the applicant does not meet the requirements set out in 1 above, this Special Authorization expires. 3. The Passenger Transportation Board may vary the requirements set out in 1 above, if circumstances warrant it. 4. If an applicant needs more time to activate its vehicles, then the applicant must make a request to the Board before the end of the 6 month activation period. (Note: activate means that the applicant has submitted the documents required to obtain a Special Authorization Vehicle Identifier to the Registrar of Passenger Transportation.) Notice to Registrar The Registrar must not, without direction from the Board, issue the applicant a licence or any Special Authorization Vehicle Identifiers if the applicant has not activated the vehicle within 6 months of the date of this decision. (Note: activated means that the applicant has submitted to the Registrar of Passenger Transportation the documents required to obtain a Special Authorization Vehicle Identifier.) Special Authorization Passenger Directed Vehicle (PDV) Terms & Conditions Maximum Fleet Size: Vehicle Capacity (LV): 1 vehicle A driver and not less than 6 and not more than 11 passengers Service 1: Originating Area: Destination Area: Transportation of passengers may only originate from any point in the Capital Regional District. Transportation of passengers may terminate at any point in the Capital Regional District Service Limitation Service may only be provided to passengers whose transportation is (a) pre-booked no less than 48 hours in advance and (b) is for a guided, customized sightseeing tour. Transfer of a licence: This special authorization may not be assigned or transferred except with the approval of the Board pursuant to section 30 of the Passenger Transportation Act. Page 11 PDV Decision Passenger Transportation Board
VAGO, Elizabeth EV Tours Appendix II (Rates) Hourly Rates* (charter) Rate $ Hourly Rate (3 hour minimum) 110.00 * Taxes are not included General: Other rates and rules may be set out in the rates document received from the applicant. Page 12 PDV Decision Passenger Transportation Board