Parks Canada's proposes 140% increase in Membership Fees at Highland Links

[Don Hyslop]

Parks Canada, an arm of the Government of Canada, has announced a trial ballon asking for a 140% increase in membership fees at the Cape Breton Masterpiece. They claim that the operating deficit is the reason the increase is necessary. One has to wonder if the aim of eliminating the deficit by this means is the way to proceed. I have to question how many of the present members can afford such an increase in an area where the economy is very seasonal in nature. Also will the green fees increase by a similar percentage? Highland Links has the shortest season of any golf course in Nova Scotia and the members receive no other perks other than at present a very good membership fee. Is there another motive that the Government has in doing this?
http://thechronicleherald.ca/novascotia/681702-members-fear-big-fees-at-highlands-golf-course

[Ian Andrew]

Don,

You do know they have the morning tee times locked up on Saturday and Sunday as part of their arrangement.
I assume that remains in place.

[Adam Clayman]

Did a management company recently take over?

[Don Hyslop]

Not sure on the tee time arrangement and no the course has not been taken over by private business. This proposal is coming from the Government.

[Philippe Binette]

I wouldn't mind being charges 5 $ more on my income tax just for the parks canada...

how much are those F-35 again.... thanks a lot Western Conservatives.

[Robert Thompson]

$2K with no initiation is pretty damned cheap if you ask me. They've been underpaying for years.

Parks Canada, an arm of the Government of Canada, has announced a trial ballon asking for a 140% increase in membership fees at the Cape Breton Masterpiece. They claim that the operating deficit is the reason the increase is necessary. One has to wonder if the aim of eliminating the deficit by this means is the way to proceed. I have to question how many of the present members can afford such an increase in an area where the economy is very seasonal in nature. Also will the green fees increase by a similar percentage? Highland Links has the shortest season of any golf course in Nova Scotia and the members receive no other perks other than at present a very good membership fee. Is there another motive that the Government has in doing this?
http://thechronicleherald.ca/novascotia/681702-members-fear-big-fees-at-highlands-golf-course

[Jeff_Mingay]

$2K with no initiation is pretty damned cheap if you ask me. They've been underpaying for years.

I agree with, Rob. There are costs associated with the operation that need to be covered, and these costs are covered by charging appropriately not by making it 'too affordable' for people. A lot of clubs make that mistake.

[Philippe Binette]

Should Highlands Links go with a graduated price list say:

a cheap price for locals (cape breton islan for example)

a price for people of Nova Scotia

a price for rest of Canada

and a price for internationals

the do that in scotland and australia and it seems to work.

[Don Hyslop]

My concern Rob and Jeff is that there will be many locals who simply will not be able to afford to renew their membership. This is an area where the majority of people are seasonally employed and if you are aware of the recent changes to unemployment insurance in Canada you realize it is designed to affect seasonal workers. An increase sure, a 140% increase is severe. If you read the article, it mentions how much volunteer labour they have put into the course, obviously that likely will no longer happen. The course still need a lot of work, hopefully they don't end up with even less revenue due to this decision.
   I do like Philippe's suggestion. Cabot Lins is already doing something like this.

[Jeff_Mingay]

Don,

I understand and sympathize with your point. However, this is a problem with many golf clubs. There are expenses that need to be covered. And, I presume the increase in membership fees at Highlands Links is directly related to needs. In this case, the alternative seems to be (continued) government subsidization of the golf course in light of the fact that there doesn't seem to be an adequate market to cover all of the expenses involved with operations and upkeep, there? I'm biasly supportive of this at Ingonish, but it's a tough situation.

[Andy Stamm]

Highland is obviously part of a much bigger national park. Is the park as a whole or other park entities economically self-supportive? I imagine that any number of things at the park require user fees or licenses, but I'd be surprised if many of the operations pay for themselves. Does anyone know?

[Mark Chaplin]

Phillipe I do not know anywhere in Scotland that charges more for international. The council courses often charge next to nothing for locals and the new high end places often offer a reduction for locals - maybe a condition of planning?

I think the Aussie system of charging a premium for internationals to be counter productive.

[Greg McMullin]

Highland is obviously part of a much bigger national park. Is the park as a whole or other park entities economically self-supportive? I imagine that any number of things at the park require user fees or licenses, but I'd be surprised if many of the operations pay for themselves. Does anyone know?

Andy, here is a summary of Parks Canada's operating results:

In 2011/12, the total expenses were $734.8 million, compared to $703.9 million in 2010-2011, representing an increase of $30.9 million (4.4%). This variance can be explained mainly by an increase in Heritage Resources Conservation ($10.5 million), Public Appreciation and Understanding ($4.5 million) and in the Amortization of tangible capital assets ($13.1 million). The majority of the expenses consists of salary and employee benefits for $426.7 million (58.1%). Visitor Experience and Heritage Resources Conservation program activities account for 55.7% of the total expenses.

The amount of expenses for information technology infrastructure services (email, data centres and networks) provided internally up to the transfer of those responsibilities to Shared Services Canada ($9.0 million) is presented separately above and as well in the financial statements under Transferred Operations Expenses.

Total revenues amounted to $114.2 million for 2011/12. Revenues have remained fairly stable compared to prior year's total of $112.2 million. The majority of the revenue is derived from Entrance fees and Recreational fees, which together represent 69.6% of total revenues for the Agency.

In addition, revenues from Visitor Experience Program activity represent 72.5% ($82.8 million) of the total revenues of the Agency.

[Mark Chaplin]

Don with stiff competition for the tourist golfer do you honestly think foreign golfers will be happy to pay considerably more to subsidise the locals?
I have had several chats with GMs and members at Australian and New Zealand clubs and am convinced it damages their business charging excessively for overseas visitors as "it costs them loads to get here so another $50-100 won't hurt them".

I have no problem with discounting for immediate locals like Castle Stuart and Trump although I doubt the locals are trampling each other to pay £150 at Trump.

I'm interested to know where in Scotland Phillipe thinks there is dual pricing other than at council owed properties where local tax payers often pay next to nothing but that's a different kettle of fish.

[RJ_Daley]

If I'm reading this correctly, it says that members put in sweat labor to do repair and maintenance in the clubhouse, and they contributed about 2K each to bunker renovations.  I that correct?

Then:

It’s a huge hike, a big hike but we are in a deficit position of up to $500,000 every year and the only way to address that is to decrease costs and increase revenue,” said Bird during a telephone interview.

They have a 6Mo season.  Let's say they have 150 members paying $800.  That is 120K.  Then they sell 12,000 rounds @ $50 a round (conservative number for 6 mo season) that is 600K.  These people are eating and drinking something, I can only assume at some factor of profit margin on F&B.

They pay no tax as it is government park.  They probably get all sort of support work done from public works dept's even if intra agency billed. 

This guy says they are running a deficit of 500K on top of surely 600-700 fees just for golf?  That has got to be some BS! 

[Don Hyslop]

Don with stiff competition for the tourist golfer do you honestly think foreign golfers will be happy to pay considerably more to subsidise the locals?
I have had several chats with GMs and members at Australian and New Zealand clubs and am convinced it damages their business charging excessively for overseas visitors as "it costs them loads to get here so another $50-100 won't hurt them".

I have no problem with discounting for immediate locals like Castle Stuart and Trump although I doubt the locals are trampling each other to pay £150 at Trump.

I'm interested to know where in Scotland Phillipe thinks there is dual pricing other than at council owed properties where local tax payers often pay next to nothing but that's a different kettle of fish.

To be honest I don't know what the answer is. The Federal Gov't has closed numerous National Parks this winter resulting in all sorts of protests from cross country skiers, hikers and winter campers. With the claim they can't afford to keep these parks open during the winter. It is all a matter of where they want to spend their money and it is clear Mr. Harper would rather spend our money in other places like F-35s or millions on celebrating the War of 1812. Are they really losing that much money on golf course operations alone or is it on total park operations, Mark raised some interesting points?
  Cabot Links has staggered rates and something similar at Highland Links I could support. Anyway, I am worried about the future of this national treasure.

[Andy Stamm]

Highland is obviously part of a much bigger national park. Is the park as a whole or other park entities economically self-supportive? I imagine that any number of things at the park require user fees or licenses, but I'd be surprised if many of the operations pay for themselves. Does anyone know?

Andy, here is a summary of Parks Canada's operating results:

In 2011/12, the total expenses were $734.8 million, compared to $703.9 million in 2010-2011, representing an increase of $30.9 million (4.4%). This variance can be explained mainly by an increase in Heritage Resources Conservation ($10.5 million), Public Appreciation and Understanding ($4.5 million) and in the Amortization of tangible capital assets ($13.1 million). The majority of the expenses consists of salary and employee benefits for $426.7 million (58.1%). Visitor Experience and Heritage Resources Conservation program activities account for 55.7% of the total expenses.

The amount of expenses for information technology infrastructure services (email, data centres and networks) provided internally up to the transfer of those responsibilities to Shared Services Canada ($9.0 million) is presented separately above and as well in the financial statements under Transferred Operations Expenses.

Total revenues amounted to $114.2 million for 2011/12. Revenues have remained fairly stable compared to prior year's total of $112.2 million. The majority of the revenue is derived from Entrance fees and Recreational fees, which together represent 69.6% of total revenues for the Agency.

In addition, revenues from Visitor Experience Program activity represent 72.5% ($82.8 million) of the total revenues of the Agency.

That's very helpful, thank you. That's for all of Canada's Parks, not just Cape Breton?

If I'm reading it right, you've got about $720 million in cost and $113 in revenues. Which means Parks Canada is funded predominately through taxes and provided as a service to Candians, etc. as is common with public parks.

Is the golf course doing worse than a 1/7 ration of of revenues to costs? In other words, is it worse than the parks system as a whole? I seriously doubt it. It seems the benchmark to which it's being compared is break even. Is that the benchmark used for tennis courts? Ski trails? Camp sites?

[Dick Kirkpatrick]

Greg McMullen

Is it possible to break out the numbers for just Highland Links and not all the totals for all the National Parks?

Do Jasper and Banff do any better than H.L. in respect to rounds played/profit and loss statement. (Bottom line?)

[Don Hyslop]

Here is the reaction to this from the Member of Parliament who represents that area.
http://markeyking.liberal.ca/blog/news-release-eyking-questions-minister-increased-user-fees-parks-canada/

[Don Hyslop]

Here is an article from last week in the Cape Breton Post regarding the effects Parks Canada is or will be having on Northern Cape Breton. The opinion letters from readers that follow the article are well worth examining as well. I think the future of this golfing gem is in trouble with the policies of this Government. Maybe in a couple of years Parks Canada will be issuing mining permits in the park. And to think the Highland Clearances were restricted to 18th Century Scotland.
http://www.capebretonpost.com/Opinion/Letters-to-the-Editor/2013-02-18/article-3178961/Parks-Canada-proposed-fee-hikes-show-management-is-out-of-touch/1