Parks Canada Looking For Private Operator to Take Over Highland Links

[Robert Thompson]

And Kemper isn't managing it regardless of what their website says. Ben Cowan-Dewar is running it with his wife. There's no Kemper personnel there.

Not a comment on Kemper other than to say that they were never part of Cabot Links.

[Bryan Izatt]

Seems somebody at Kemper Sports is paying attention - Cabot Links is now listed as an "18-hole Daily Fee" course they are managing.  Would it not be illegal to promote their management of CL if it is not true?

[Kris Shreiner]

While Kemper hasn't had the role it did at Bandon from the outset, I don't think saying they've had no role at Cabot is quite accurate. Ben (or Ran) could speak to that better than any. If Mike K.'s coming on board didn't at least have some Kemper discussion regarding assisting in operations, that would be surprising. My take is that there has been some limited participation by Kemper at some point, but the profile was/is super low and more of an advisory or consulting-related nature.

Not having visited Highlands Links or Keltic Lodge yet, it's difficult to discern what the hotel attached to the course lease proposition would yield. There is no question the asset(hotel) has suffered from decades of deferred maintenance, and without significant government funding, no operator with a brain would touch it as the season is too short to recoup that investment if it were single-source funded. To date, they've thrown small amounts of money at trying to put lipstick on an aging pig with predictable results.

Canada's government needs to: partner with a commited entity for the long haul, help fund a proper, well-executed restovation of the hotel, continue the course improvements being made under Ian's superb direction, solidly market, and then celebrate the rebirth of one of Canada's most treasured destinations. Anything less is a serious mistake, for both the country and the region. Few locales, worldwide, can touch the arresting beauty the combination of Highlands Links, Keltic Lodge and that area offers. I hope the right path is chosen.

Cheers,
Kris

[henrye]

Kris.  That sounds like sage advice.  Maybe you can give the government a call?  In Canada we have a quasi-republican style government, which would obviously like to get out of the resort management business.  That said, they know the political backlash that would take place if they let this fail.  The east coast is not like Alberta.  Ben & Co. should spend a few days combing over the books.  Always good to have a perspective on how the business up the road is doing.

[Chris Newton]

Despite concerns with funding and conditioning over the years, I've always thought that Parks Canada and the community's involvement with the course has added a certain charm to Highlands Links. I hope that is not lost if/when a private operator takes over.

[Don Hyslop]

Story appeared in today's Halifax newspaper outlining the present employees hope that they will maintain their jobs as well as possible bidders for the course and Lodge.
http://thechronicleherald.ca/novascotia/132695-union-chips-in-on-highlands-links-sale

[Don Hyslop]

Latest update story on Parks Canada's plan to lease out Highland Links. This from the Sept 19 Halifax Chronicle Herald.

http://thechronicleherald.ca/business/137171-parks-canada-tees-off-on-sale

[Don Hyslop]

It seems the idea of leasing the course out to private enterprise isn't going down to well with the residents of Ingonish. Public meetings have been called and petitions started to try and halt this move by the Canadian Government. Many are claiming that when the land was sold to the Feds, it was done so with the agreement that jobs would be provided to the families of those who were affected by the land sale. Presently there are 22 full time workers along with seasonal and student workers.
The Conservative Gov't in Canada has slashed spending on National Parks all across the country.
http://www.capebretonpost.com/News/Local/2012-10-06/article-3094313/Community-protests-planned-privatization-of-golf-course/1

[Greg Beaulieu]

No surprise the locals don't like it, considering this is Cape Breton where union roots run deep and private investment is often looked at with a jaundiced eye. From my point of view this call for proposals strikes me as a very good thing for the golf course and its ongoing competitiveness. All they need is a modern resort hotel. Both the course and the existing hotel have suffered for years due to lack of government funding.

[Ian Andrew]

No surprise the locals don't like it, considering this is Cape Breton where union roots run deep and private investment is often looked at with a jaundiced eye. From my point of view this call for proposals strikes me as a very good thing for the golf course and its ongoing competitiveness. All they need is a modern resort hotel. Both the course and the existing hotel have suffered for years due to lack of government funding.

They're pissed because it "was" their land.
Broken promises have more to do with this than union jobs.

The current operator of the Hotel is most likely to take over both.
Do you think they'll put any money into the course?
The new operator will look to make a profit from a course that is close to, but not quite breaking even.

I'm not saying the current arrangement is perfect, but I expect this will end a run of improvements that began four years ago.

[Jeff_Mingay]

That's bizarre, Ian... to think that the current run of improvements to the course will end with any new arrangement.

All the future operator has to do is look around the world to see where golfers are going, if in fact they really want to make a profit from the course. It's not places that are cutting back and letting their golf courses be anything but the very best they can be. Cutting back on capital improvements and maintenance isn't the answer.

If (whoever) thinks it is, sadly watch the result there, at Ingonish.

Let's hope intelligent planning and operations prevail. (Fingers crossed.)

[Ian Andrew]

Jeff,

The issue is the Hotel needs far more investment than the course.
And like the course it's only open part of the year!

It's not an easy model to make work.

[Kris Shreiner]

If the hotel and course are joined at the hip, and the current operator remains, they need to get people that KNOW destination golf to create that rightness in a complete presentation. And it isn't about some management company coming in. It's golf people that have lived it, in the trenches. to deliver. The locales that are solid DIFFERENCEMAKERS, and bring it...everyday, should certainly have a role and employment. The union element, where bloated remuneration is expected, for what is essentially a seasonal job, needs to be reworked.

While SOME locales may have had land appropriated from them at meager compensation, that was a long time ago under a much different economic reality than today. What...is the facility suppossed to continue to take a financial bath to sustain union wages to "take care" of them? No BUSINESS model in the world would advocate that!

Competition in today's destination golf arena is fierce. You need a lot of things to go right to become profitable. It's clear that what has been transpiring in the last 20 years up the Highlands hasn't gotten the job done. The marketing has been very weak! They can turn it around...but they need help. It won't come from a hotel-based entitiy alone. Or some golf management company either.

Cheers,
Kris Shreiner

[Dan Herrmann]

I've heard that the hotel isn't that well managed.  That's why I stayed over in Cheticamp when I visited last.

[Greg Beaulieu]

They're pissed because it "was" their land.

I don't know if the land Highlands is situated upon was ever in private hands or not, but if it ever was, those original owners would have received it through Crown grants, so really the point is somewhat moot.

Broken promises have more to do with this than union jobs.

The current operator of the Hotel is most likely to take over both.
Do you think they'll put any money into the course?
The new operator will look to make a profit from a course that is close to, but not quite breaking even.

Any operating proposal must contain commitments from either the owner or operator or both as to capital investment. If not, it is a very poorly thought-out arrangement.

I'm not saying the current arrangement is perfect, but I expect this will end a run of improvements that began four years ago.

I suspect the improvements over the past few years were done with the intent of getting the place to this point where it is just attractive enough to lure a few potential operators. Hopefully the new operator will see the value of the improvements made and continue those, either on their own or in partnership with the government owner, in order to help them make a profit. And let's face facts: this is probably the only way to get the public-sector grounds crew off the payroll, which, for all their virtues, probably renders profitable operation of the course impossible.  I agree that it is sad that this has to change, but it is reality.

[Don Hyslop]

I've heard that the hotel isn't that well managed.  That's why I stayed over in Cheticamp when I visited last.

I have stayed at Keltic Lodge(the historic buliding) twice over the past five years and it was a positive experience bioth times. Many of the staff were either university or college students and I found them very friendly and helpful. I also enjoyed the history of the place. There are also other pretty good places to stay in Ingonish.

[Lynn_Shackelford]

This is pretty simple.  The government and the community have to decide whether this is a recreational activity or a business.  If recreational activity, then the government must up the subsidy.  If it is a business, there is no need to lease the premises, just bring in a management group for a fee.  They know how to operate the place as a business and it can probably be self sustaining.  In the agreement the government can layout the policies that will protect the facility as a quaint local operation.  Most of the employees, the good ones anyway, will continue to be employed.
I am guessing on this.  I think Kemper Sports has developed some sort of hybrid which falls between a full management arrangement and a consulting arrangement.  It is possible that is what Cabot Links has, not sure about that as I have spoken to no one.  I believe Kemper Sports has that arrangement at La Turretta in Houston/Conroe and may be involved on that basis at Streamsong.  Again I am speculating here.

In any event most of the fears of the community stem from ignorance and a failure of the government to educate the interested parties.

[Kris Shreiner]

Lynn,

The biggest problem outside of the union wage anchor is the LARGE cash investment that really needs to be made to bring the hotel and outbuildings up to a proper standard. We're talking 3-5 million plus at the minimum. No operator on their own will sink that kind of dough into a short-season, heavily weather-influenced enterprise that is the Highlands experience, golfing or otherwise.There is simply too much risk that the return won't materialize.

The area and Keltic Lodge are a national treasure for Canada...they are both a recreational AND business asset! The Canadian government needs to recognize that the meager lick-and-a-promise approach to maintaining it of the past must end and they need to commit REAL money to restore it to modern expectations in a VERY competitive vacation destination environment.

Coupled with a solid, boutique-type management partnership, that has a long-term view and deep enough pockets to uphold their end of the lease/time commitment, a wonderful icon on the Cape Breton trail could again deliver what it should be...a suberb, natural respite for golf and many other recreationa/tourism pursuits.

Cheers,
Kris

[Don Hyslop]

This move to lease out the course continues to raise opposition in Cape Breton. An article appeared in today's (Oct. 28th) edition of Nova Scotia's provincial newspaper that is worth a read.
http://thechronicleherald.ca/thenovascotian/155992-cape-breton-s-crown-jewel-on-the-block

[Will Lozier]

To date, they've thrown small amounts of money at trying to put lipstick on an aging pig with predictable results.

Kris,

This is a very harsh description...especially from someone who has not played the golf course nor stayed at the Keltic Lodge.  The course and lodge are incredibly charming and, while both are in need of investment, an "aging pig" is a horrible analogy!  I can't wait to get back there even if not a additional dime has been put into either course or hotel.  I enjoyed two of the most memorable rounds of golf I've ever played (in 7 hours no less) and my wife and I enjoyed a few astonishingly tasty meals there to start our honeymoon.  The drive to get there, although a bit too long for most, is quite special as well.  Perhaps it is just a semantics issue, but you should reconsider how you label such a totally unique, special, and historic destination. 

Cheers

[Will Lozier]

Despite concerns with funding and conditioning over the years, I've always thought that Parks Canada and the community's involvement with the course has added a certain charm to Highlands Links. I hope that is not lost if/when a private operator takes over.

Agreed Chris!

Cheers

[Robert Thompson]

It added charm -- but also contributed huge problems to the course and has left it without an obvious solution. A private operator can't possibly do worse.

[Don Hyslop]

Robert, I think the public ownership contributed to issues in direct proportion to how much the federal gov't was willing to invest in this great course. To me they should have valued it as a National Historic site and spent accordingly to get it back to its original shape but Mr. Harper's attitude unfortunately doesn't value this kind of thing. I just hope that whoever takes over the running of the course can devote the love that the citizens of Ingonish have shown over the years including giving freely of their time to help out the course. Rick Young of Score Magazine illustrated this well in a recent article;"Clearly pride is an overriding theme at Highlands Links. Seventy-five members of the community went out on the sixth hole after a 2009 flood and scrapped the entire fairway to put it back and make it playable. Impressing the hell out of me too with their dedication is Sheila Donovan, Gilles Hostal, Nancy Doucette, Cecelia Dauphinee and Wanda Whitly. When the banks of Clyburn Brook spilled over on the No. 11 in March, these Parks Canada employees - on their own - moved 150 yards of rocks, boulders, pebbles and gravel using dandelion rakes and whatever else they could to get the course ready for opening this year. They worked on it everyday from April 4 to May 10. "

[Don Hyslop]

Report in today's Chronicle Herald ( Nova Scotia's leading daily newspaper) reveals New Castle Hotels and Resorts as one of several bidders to take over the operation of Highland Links.
http://thechronicleherald.ca/business/175707-hotel-firm-eyes-cb-facilities

[Ian Andrew]

As of last night, this became the staus of Highlands Links ...

"Parks Canada recently completed evaluating proposals submitted in response to the Request for Proposals (RFP) for the Keltic Lodge and Highland Links. After careful consideration, it was determined that these proposals did not meet the requirements set out in the RFP.   

Parks Canada will continue to operate Highlands Links for the 2013 season, and the Province of Nova Scotia will operate the Keltic Lodge for the 2013 season."


My impression is they still want to find a private operator for Highlands Links after this coming golf season but there is no longer a link between hotel and course.