You Betcha: BC’s Newest Tourism Product
by Chris McBeath

If you thought gaming was already a hot tourism commodity, the stakes about to become even hotter. So hot, in fact, that as of March 31, 2006, NASDAQ started trading a new no-load mutual fund - The Gaming and Casino Fund. As the first and only mutual fund to specialize in the gaming and casino industry, the fund invests at least 80% of its assets in casinos, including hotel, resort, and cruise ship casinos as well as many other gaming products.
In the US, some 500 commercial casinos and 160 Indian casinos generate annual revenues of nearly $75 billion in an industry that has become so highly concentrated that the top 20 companies hold more than 60% of the market. 
The success of the US “destination gaming model” has seen a similar shift happening in Canada, although more controlled gaming revenues here have exploded in recent years. As different provincial licensing bodies adopt new and more sophisticated marketing strategies, the economics of gaming as part of the tourism mix are fueling changes in the product itself. Current figures value the industry at approximately $14 billion (see sidebar), of which BC’s share is a healthy $1.9 billion. 

Changing Landscapes
“Future growth rates may not be as high,” says William Rutsey, President and CEO of the Canadian Gaming Association, citing concerns on border-crossing issues and Internet gaming - expected to climb to $1 billion annually by 2010 from current estimates of $500 million a year. “The industry will, however, still experience strong growth, especially of ‘non-gaming amenities’ like hotels, beverage operations and entertainment facilities,” Rutsey adds.
Since the gaming landscapes vary from province to province, both in terms of player demographics and licensing, there isn’t a one-brand-fits-all solution; and it’s only in the last few years that the BC Lottery Corporation has encouraged operators to move from “pure play” to a more integrated entertainment model. With its 1,000-seat theatre, multiple food and beverage outlets and resort hotel, the River Rock Casino Resort in Richmond is a good example of this model. 
In the past year, destination hotel casinos have been opening up in different areas of the province and are helping to define this entirely new tourism product. One example can be found in the City of Langley, where Gateway Casinos partnered with Coast Hotels to create a first-class gaming entertainment facility: Cascades Gateway Casino, Hotel and Convention Centre, which opened in June of last year. “Cascades has brought a unique mix of gaming entertainment, live performances, and music, alongside a functional, 77-room hotel and 26,000 sq ft of convention space to the City of Langley,” states Dave Gadhia, President of Gateway Casinos. “The project injected nearly $40 million into the economy of the City of Langley and surrounding communities during the construction phase alone, and based on revenue projections of $80 million for the Fiscal Year 2005/06, it is estimated that the City of Langley’s share will be $4.5 million.” 
The Cascades currently welcomes about 10,000 visits per day, and its 420-seat Summit Theatre has proved so popular that it has had to temporarily close to increase parking capacity. The theatre is scheduled to reopen in August.

New Economies
Further afield, the Treasure Cove Casino & Hotel in Prince George is helping to expand tourism markets for northern BC. In addition to injecting $26 million into the Prince George economy, this property has provided 150 full-time equivalent jobs and is setting a new standard for attractive and exciting casino gaming. Treasure Cove features a restaurant, lounge, and Las Vegas-styled show lounge, which attracts entertainers such as Colin James and the Irish Rovers as well as providing 24-hour security-patrolled parking for 700 vehicles.
“The hotel and casino own joint land parcels, and all our advertising and packages are joint ventures,” explains Stuart Ramsey, the hotel’s General Manager. “Our Mediterranean theme, the murals and general décor are deliberately designed to change people’s perceptions about gaming, and appeal to a broader audience that enables us to sell into the Okanagan and Prince Rupert. We’re also an ideal stopover for buses en route to farther north. Tour operators actually get paid on the numbers they bring to the site, based on headcounts that we take every 4 hours.”
The Treasure Cove is also creating some unique permanent opportunities for hoteliers in that community. Adjacent to Treasure Cove, 5 hotels are being planned to increase accommodation options in terms of comfort and price.
In the Kootenays, St. Eugene Mission Resort is among one of the province’s largest and most refined aboriginal projects. Owned jointly by the 5 bands of the the Ktunaxa Kimbasket Tribal Council (KKTC), the $41.6 million resort was developed by a consortium of private investors, commercial banks, and governments, and offers a full service 4.5 star hotel, a championship golf course, spa services, fitness centre, conference facilities, the Ktunaxa Interpretive Centre, and The Casino of the Rockies. The latter alone employs approximately 120 people with an annual payroll in excess of $3 million. 
The Okanagan has had a casino presence since 1998, first in Vernon and Kamloops where the properties are geared primarily to local traffic, and then moving to the tourist markets in Kelowna at The Grand Okanagan Resort and Conference Centre, and at the Penticton Lakeside Resort Convention Centre & Casino. 
“Convention organizers either love having an onsite casino, or hate it,” says Cecilia Guerrero, Marketing Director at The Grand. “Once here, however, the convention delegates themselves always have a huge impact on the casino. And golfers love it,” she notes, which is why promotions such as the recent “Birdies & Back Rubs” Fathers’ Day package (a cross promotion with the Gateway Casino in Richmond), are so successful. 
“Ours is a tenant position with the Grand Hotel,” says Susanne Carter, Director of Marketing at Lakeside Casino. “We have an excellent relationship with them and are always creating seasonal ‘Stay & Play’ promotions, or we work with conventions in providing special playing chips.” As evidenced by Westin’s recent announcement to establish an impressive presence here within the next 3 years, Susanne continues, “Not only is there an overall trend to up the gaming experience, the Okanagan experience is also becoming increasingly sophisticated. That’s why we are looking at a 20,000 sq ft expansion, which will include a show lounge, restaurants, a poker room (poker has surged back in popularity) as well as a high-stakes area. The upgrade will also be a good fit for the neighborhood, which is now the ‘entertainment district’ of Kelowna.” 

International Allure
While hoteliers and providers throughout the province are responding to the challenge to “up the ante” of BC’s gaming experience, the BC Lottery Corporation has started to broaden the marketing efforts of the province’s latest tourism product. Its brochure, Casinos of British Columbia – a Chance for Adventure is the first piece of collateral to hit the international market, and clearly plays on the spectacular nature of the province, promoting beauty by day with pictures of rugged wilderness, and bounty by night with inviting casino images. For now, gaming tourism might be considered among the most exciting developments to help enable and support other tourism initiatives. But like its predecessor, eco-tourism, it offers a fragile balance to manage.