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ACCOMMODATION BULLETIN | NUMBER 5 | FALL 2008 Performance of Roofed Accommodation by Tourism Regions

S • Accommodation properties are concentrated in sold between 2003 and 2007. The decline was T

H Cape Breton, the South Shore and the Fundy particularly evident in the Yarmouth & Acadian G I Shore and Annapolis Valley regions. However, Shores region. L

H Halifax Metro has by far the highest proportion G I of accommodation units – over 40%. • Annual occupancy rates in all regions were H below 60%, with Halifax Metro outperforming • Metro Halifax received 52% of total room all other regions. nights sold in 2007.

• All regions except the Northumberland Shore and Halifax Metro had a decline in room nights

Y Supply of Roofed Accommodation than 10% of the properties. This reflects the concentra - L

P • Accommodation properties are concentrated in Cape tion of large hotels in the region. P

U Breton, the South Shore and the Fundy Shore and • Between 2003 and 2007, the supply of accommodations S Annapolis Valley regions which, together, have 72% of increased in most regions. The most notable increases the properties in Nova Scotia. However, these regions were in the Northumberland Shore region (+32% in have only 45% of the rooms, indicating that many of accommodation units) and Halifax (+20% in accommo - the properties are small operations such as B&Bs, cot - dation units). Small decreases in the number of units tage/cabins, and vacation homes. occurred in the South Shore and the Fundy Shore & • Halifax Metro has over 40% of the units, and fewer Annapolis Valley regions between 2003 and 2007.

Supply of Accommodation Properties by Supply of Rooms by Tourism Region Tourism Region 2007 2007

Yarmouth & Yarmouth & Acadian Shores Acadian Shores 3% 4% Eastern Shore 2% Eastern Shore 5% Cape Breton South Shore 8% 26% Halifax Metro Halifax Metro 9% 41% Northumberland Shore Northumberland South Shore 10% Shore 25% 10% Fundy Shore & Fundy Shore & Annapolis Cape Breton Annapolis Valley Valley 19% 21% 18% Performance of Roofed Accommodation by Tourism Region PAGE 2

D Demand for Roofed Accommodation • All regions except the Northumberland Shore (+20%) N • 52% of the 2.59 million room nights sold in Nova and Halifax Metro (no change) had a decline in the A

M Scotia in 2007 were at properties in Halifax Metro, number of room nights sold between 2003 and 2007. E

D with 16% in Cape Breton and 14% in the Fundy Shore The m ost significant decline was in the Yarmouth & & Annapolis Valley region. Acadian Shores (-29%) region. • All regions except Halifax Metro attracted fewer room nights sold, based on the available room nights in each region. • For May to October, Halifax Metro’s share of room nights sold declined to 47% while the share received by Cape Breton increased to 19%.

Percentage of Room Night Sold by Tourism Region Percentage of Room Night Sold by Tourism Region Annual 2007 May to October 2007

Eastern Shore 1% Eastern Shore 1% Yarmouth & Yarmouth & Acadian Shores Acadian Shores 2% 2% South Shore South Shore 7% 8% Northumberland Halifax Metro Halifax Metro 52% Northumberland 47% Shore Shore 8% 8% Fundy Shore & Fundy Shore & Annapolis Valley Annapolis Valley Cape 14% Cape 15% Breton Breton 16% 19%

Percentage Change in Annual Room Nights Sold by Accommodation Demand – Room Nights Sold by Region Tourism Region 2003 to 2007 2003 to 2007

) s 1,500 20% d n a s u o h t

15% ( 1,400 Halifax Metro 10% Cape Breton Island 1,300 5% Fundy Shore & 0% 1,200 Annapolis Valley

-5% South Shore -10% 500 Northumberland 400 -15% Shore 300 -20% Yarmouth & 200 Acadian Shores -25% 100

-30% 0 Eastern Shore Fundy South Halifax Eastern Cape Northum- Yarmouth 2003 2004 2005 2006 2007 Shore & Shore Metro Shore Breton berland & Acadian Annapolis Shore Shores Valley

Tourism Research Services 2 Performance of Roofed Accommodation by Tourism Region PAGE 3

S Occupancy Rates Only Halifax Metro has an occupancy rate above E

T • In 2007, annual occupancy rates in all regions were 60%; the South Shore region and Cape Breton Island A

R below 60%, with occupancies in Halifax Metro falling have occupancy rates just above 50% and all other

Y to 59%, down from 66% in 2003. regions had occupancy rates below 50%. C

N • Outside of Halifax Metro, the highest occupancy • A combination of increased supply and decreased A

P rates were on Cape Breton Island and the demand, led to occupancy rate declines in all regions, U

C Northumberland Shore, with the lowest on the both annually and for May to October, between 2003 C Eastern Shore and Yarmouth & Acadian Shores. and 2007. The most significant decline was in the O • A similar pattern exists for the May to October sea - Yarmouth & Acadian Shores region, down from 56% son, although occupancy rates are slightly higher. in 2003 to 35% in 2007.

Annual Occupancy Rates by Tourism Region 2003 to 2007

80%

70%

60%

50%

40%

30%

20%

10%

'03 '04 '05 '06 '07 '03 '04 '05 '06 '07 '03 '04 '05 '06 '07 '03 '04 '05 '06 '07 '03 '04 '05 '06 '07 '03 '04 '05 '06 '07 '03 '04 '05 '06 '07 0% Fundy Shore & South Shore Halifax Metro Eastern Shore Cape Breton Northumberland Yarmouth & Annapolis Valley Island Shore Acadian Shores

May to October Occupancy Rates by Tourism Region 2003 to 2007

80%

70%

60%

50%

40%

30%

20%

10%

Tourism Research Services Performance of Roofed Accommodation by Tourism Region PAGE 4

N DISCUSSION O I S

S • Roofed accommodation properties in Halifax Metro branded motel operations. Even so, occupancies in U

C attract approximately one half of all demand in the this region remain below 50% on average. S

I province and outperform all other regions. This is due • Outside Halifax, occupancies throughout the D to several factors including business, meetings and province remain below levels normally considered convention activity, special events, and the desire of commercially viable. It should be noted, however, visitors to stay in urban centres with a full range of that this data includes the eight universities in Nova services. However, even Halifax experienced a soften - Scotia that make their rooms available for rent during ing in demand in 2007. the summer. Occupancy rates at the universities are • Challenges with the ferry service from Maine have significantly below average and therefore pull down impacted accommodation activity in the Yarmouth & the average occupancy rates. This is particularly true Acadian Shores region. for Halifax Metro, Cape Breton, the Fundy Shore & • The Northumberland Shore is the only region to see Annapolis Valley region and the Northumberland an increase in demand. This is a reflection of an Shore. increase in supply (+32%) with a number of new qual - ity cottage and resort properties, as well as new

D BACKGROUND N U

O Introduction 6 properties of similar size must be in a category for R

G The Accommodation Bulletins are designed to provide data to be released. K

C insights into the supply and demand for Nova Scotia’s A roofed accommodation and campgrounds. Each bulletin Definitions B addresses a different theme. Room Nights Available – The number of rooms (or units) of accommodation multiplied by the number of These bulletins complement Tourism Insights which days that the property is open for business. A ‘room’ provides monthly and annual data on accommodation means one rentable unit. For cottages, cabins, and activity for the province and tourism regions. The apartments, there may be several bedrooms in the unit but accommodation bulletins provide a five year trend it is registered as one rentable accommodation unit. In analysis and show results by type of accommodation. contrast, for hostels, each bed is a separate rentable unit.

The audience for these bulletins includes: Room Nights Sold – The total number of rooms sold in a • Accommodation and campground operators given period. For example, a motel selling 25 rooms each • Potential investors and developers night during a 31 day month would have 775 room • Real Estate appraisers nights sold. Also referred to as occupied room nights. • Regional and municipal development agencies • The tourism industry in general Occupancy Rate – The number of room nights sold • Consultants and researchers divided by the number of room nights available for any particular period. Expressed as a percentage. Research Methods Accommodation and campground businesses provide Property Types monthly occupancy data to the Department of Tourism, Bed & Breakfast (B&B) – usually up to 4 guestrooms Culture and Heritage. Due to the significant cooperation available in a private home with ensuite, private or of this sector, the reporting rate is 99%. To protect the shared bathrooms, common living room, full or confidentiality of individual operators, a minimum of continental breakfast included in room rate.

Tourism Research Services Performance of Roofed Accommodation by Tourism Region PAGE 5

D BACKGROUND continued N U

O B&B Inn – a bed & breakfast property with five or more Motel – a property with guestrooms under one roof, R rooms with breakfast included. ensuite bathrooms, external and/or internal access to G

K each guestroom. C

A Inn – a property with ensuite or private bathrooms, B guest living room, dining room serving breakfast Resort – a property (may include cottages), with ensuite and full evening meals. May have heritage or historic bathrooms, food service and extensive on-site recre - characteristics. ational facilities; may offer conference facilities.

Cottage/Cabin – free-standing unit with one or more Tourism Regions – The seven tourism regions identified bedrooms (linens supplied) or bed-sitting area, a bath - by the Department of Tourism, Culture and Heritage in the room, possibly separate kitchen and/or living room. fall of 2007. For a map showing the boundaries of these regions, please see the 2008 Doers’ and Dreamers’ Guide. Hotel – a property providing internally accessible, guestrooms, ensuite bathrooms, food service facilities, meeting and conference rooms.