When it comes to the size and capacity of conference centre space in Western Canada, Canmore’s largest venue that fits 200 potential delegates is a drop in the bucket.
With a spectrum of available space meeting the needs of upwards of 1,000 conference attendees out there, Canmore Business and Tourism President Andrew Nickerson said there is still market potential here to build a conference centre and realize a large-scale and longer-term community economic impact.
But what is key, Nickerson told council earlier this month while presenting CBT’s market analysis on a potential conference centre, is finding the “right” kind for Canmore, and that includes location, ownership and operating model.
“We wanted to look at the need and the opportunity for a conference centre,” he said. “It is one thing to actually say there should be one, but we wanted to see the need and market-based case for it.
“We are looking at one that best impacts all businesses, one that attracts the target visitor – the people who love Canmore for what Canmore is. It obviously has to be financially sustainable in the long term, but also has to be scaleable for growth.”
Nickerson said not only should the facility be able to grow if there is increased demand for space, but it should also add benefit to life in the community.
Two reports were presented to council: one by PKF Consulting and Deloitte LLP on the market and financial assessment for a conference centre in Canmore, and one by Aspire Strategic to provide additional analysis of successful convention centre funding and operational models.
Aspire’s report concluded there are a variety of funding and operational models that could be considered and would benefit the economy and fit in with the community. PKF’s market assessment showed a market demand for a conference centre in Canmore, as well as financial implications such a facility would have. It concluded that operational deficits are reasonable when considered in context with other convention centres.
What is important to understand, Nickerson said, is that CBT is not proposing to build a convention centre, but wants to champion the idea in the community so that if the right opportunity arises it can “be realized if appropriate.
“We are not going to be building a convention centre, it is not our job,” he said. “We did this research and background as a business case and to create awareness. We want to drive it forward.”
Nickerson said Canmore’s monthly hotel occupancy numbers show the summer months to be busy for visitation and not in need of further economic development or promotional activities. It is the shoulder months, October to May, that low occupancy rates show an opportunity to increase visitation and one way to do that is through conferences, meetings and incentive travel.
Conferences, he said, typically happen in that timeframe and mid-week – making it an area of economic growth potential for Canmore.
“We know how busy the town gets in summer, yet we have a great opportunity to attract visitation in the off season and traditionally that is something conferences do,” Nickerson said. “In terms of conference space, we do not have a great deal. The largest we have is the Coast Hotel and Conference Centre and that is 9,000 square feet.”
At that size, conferences are restricted to events of less than 200 delegates and he said national and regional association conferences are not able to hold events in Canmore and therefore choose larger venues.
Those larger venues include the Fairmont Banff Springs with capacity of 980 delegates at a convention, the Fairmont Chateau Lake Louise with 850, the Rimrock with 600, Banff Park Lodge with 550, Delta Lodge in Kananaskis with 500 and The Banff Centre with 350.
Within Alberta and B.C., other venues can hold a capacity of up to 5,000 at the BMO Calgary Stampede, 2,100 at the Calgary Telus Convention Centre and 825 in Whistler, for example.
Even with limited capacity in Canmore, Nickerson said meetings and conferences accounted for 13.5 per cent of all room nights generated at hotels in 2013. For those venues in Alberta that have greater capacity, they accounted for 31 per cent of all room nights generated in 2013.
He said a conference centre is a growth opportunity for Canmore’s economy, if the “right” proposal were to come forward.
As for the report’s recommendation, it suggested the municipality develop the conference centre itself and looked at potential sites for it to be located. Those included the Travel Alberta site, land along Palliser Trail, downtown Canmore on municipal lands along Ninth Avenue, the industrial lands located behind the heliport and near Elevation Place.
Nickerson said ownership of the conference centre can become contentious going forward because PKF’s initial recommendation is for one to be municipally owned and operated.
He went on to argue that benefits of a municipally-owned conference centre include the fact the Town of Canmore can work closely with the economic development officer at CBT to access provincial and federal grants, incorporate sponsorship opportunities and assure the facility is aligned with community values.
“Obviously there are private sites as well that can be analyzed moving forward,” Nickerson added. “We are not coming to council with any ask right now, just information that there is market demand and opportunity. We will continue to look at opportunities and if we see the right one we will champion it.”
Four facility development alternatives were considered, but Nickerson said the one that proposes to “reach its potential” was preferred, with up to 18,000 square feet of rentable space in a standalone venues.
The financial analysis showed rooms generated by a conference centre would be incremental – increasing over time. It also shows an operational deficit of $394,000 in the first year and $126,000 by year five.
As for estimated capital costs based on the preferred development alternative, it would cost upwards of $20 million to build a 41,400 square foot facility and another $20 million for an above grade two level parking structure with 427 stalls. The total cost between $31 million and $40 million does not include the cost of land.
