Maybe I got in line twice when they were handing out paranoia but it seems to me there are signs out there suggesting Whistler should be preparing for significant change, and we seem to be meandering along in a business-as-usual mode.
One of those signs appeared last week with the announcement that, for the first time ever, Whistlers hotel tax reserve will have a negative balance in 2006. In other words weve spent (or allocated) $2.1 million more than the hotel tax is bringing in.
The hotel tax, of course, is one of the best indicators Whistler has to show how were doing in our main business, tourism. Projections are hotel tax revenue will be down to $2.9 million in 2006, the fifth straight year revenue has declined.
While there are ongoing efforts to rebuild the tourism business, including providing Tourism Whistler with more money for marketing, the RMOWs position through most of the five-year decline in hotel tax revenue has remained the same: Whistler needs new financial tools. There may be a plan B cutting spending? but for now our strategy is to continue to hope politicians get the message Whistler needs a larger chunk of the hotel tax. We sit by the tree, staring at Victoria, waiting for Gord-O.
Another sign that our little world may be in for a change is the strategic review currently underway at Whistler-Blackcombs parent company, Intrawest. The review, including the appointment last week of Alex Wasilov to the new position of president and chief operating officer, comes as the largest single shareholder in the company pushes to see the stock reach its "true value" of about $45 a share. That sort of price, up from its current value of about $32, would bring that shareholder, Pirate Capital LLC, a $125 million profit.
At this point theres not too much Whistler can do about any of the internal pressures or decisions at Intrawest, other than realize the landscape could change and be prepared for it.
We should also recognize that Whistler is not the only place in the universe when it comes to resorts and the people who have an interest in them. That would include people who book conventions, people looking for investment in recreational real estate and families looking for weekend getaways, to name a few.
You dont have to go far to realize there are resort communities across the province looking for the same people Whistler once had a monopoly on. Its not just Sun Peaks, Fernie and other ski areas that Whistler is competing with now, its places like the Strand Lakeside Resort in Vernon, Bear Mountain Resort on Vancouver Island and Ruby Lake Resort on the Sunshine Coast. Most of these places are newer and cheaper than Whistler. They dont all offer skiing and snowboarding, but they are competing for the same visitors and part-time residents/taxpayers we are.