News Release

For immediate releases                                                           July 18, 2001

BADDECK, N.S. -- The year 2000 was the fourth consecutive year the Province's tourism revenues exceeded the one-billion-dollar mark. The tourism industry's consistent and strong numbers contribute to its position as a mainstay of Cape Breton Island's economy. Local operators, in partnership with the Government of Canada are demonstrating their faith in the future by investing in new and modernized facilities.

"Cape Breton Island's tourism industry has witnessed consistently strong growth over the last several years. Revenues on Cape Breton Island exceed $230 million annually," said Mark Eyking, Member of Parliament for Sydney-Victoria, speaking on behalf of Robert Thibault, Minister of State for the Atlantic Canada Opportunities Agency and Enterprise Cape Breton Corporation. "The Government of Canada through ECBC, is pleased to work with local business people to invest in the ongoing upgrading and diversification of the Island's tourism product."

Seven tourism facilities will modernize or expand with Government of Canada repayable assistance totalling $1,083,500. The private sector investment totals approximately $2,591,000. (See attached backgrounder for list of projects.)

"The Government of Canada is pleased to work with these tourism industry entrepreneurs as they prepare for future growth with the products and facilities their customers demand," Mr. Eyking said.

Enterprise Cape Breton Corporation offers programs in support of economic development initiatives and is responsible for delivering ACOA's programs on Cape Breton Island and in the Mulgrave area.

For Further Information Contact:

D.A. Landry, ECBC
Director, Communications
Fax:(902) 564-3825
Tel: (902) 564-3617

Jennifer Savoy
Press Secretary
Office of the Hon. Robert Thibault
Tel: (613)-941-7291

BACKGROUNDER

BADDECK, N.S. -- The Glenghorm Beach Resort in Ingonish will undertake phase one of a two phase modernization. Phase one will include the establishment of meeting facilities, the upgrading of guest rooms and dining facilities, and the addition of five four-room cottages including furniture and fixtures. Improved infrastructure will include the installation of a telephone system which will allow guests access to private telephone service in all the guest rooms and improved sewer and water services.

The total estimated cost of the project is $1,450,000. Enterprise Cape Breton Corporation will make a repayable contribution of $500,000 through the Business Development Program.

The Ceilidh Country Lodge in Baddeck will undertake a significant upgrade which will include renovations to the guest rooms, dining room, kitchen and landscaping. The total estimated cost of the project is $550,000 and ECBC will make a repayable contribution of $275,000 through the Business Development Program.

The Clansman Motel in North Sydney will modernize through the upgrading of the existing 44 motel units and the construction of two additional cottages. The project will also include landscaping, renovations to the pool area and the installation of amenities like a hot tub and sauna. The total estimated cost of the project is $200,000 and ECBC will make a repayable contribution of $100,000 through the Business Development Program.

Castle Moffett near Baddeck will expand by adding one new unit. The project will also include upgrading existing amenities and marketing activities including a web page. The total estimated cost of the project is $166,000 and ECBC will make a repayable contribution of $83,500 through the Business Development Program.

Broadwater Inn and Cottages in Baddeck will undergo a renovation and expansion. The total estimated cost of the project is $100,000 and ECBC will make a repayable contribution of $50,000 through the Business Development Program.

The Chanterelle Country Inn in North River will upgrade with additional furniture and fixtures and by finishing the parking area. The project will help the Inn achieve a 4.5 Star rating with the Canada Select Accommodations Rating Program. The project will also include marketing activities over the next three years. The total estimated cost of the project is $65,000 and ECBC will make a repayable contribution of $45,000 through the Business Development Program.

The Worn Doorstep Bed & Breakfast in Baddeck will expand by adding one luxury, handicapped suite. The project will include the construction of this new handicapped unit, as well required furniture and fixtures and numerous upgrades to the existing facility. The Worn Doorstep Bed & Breakfast has an existing Four Star rating with Canada Select and this addition has all fittings necessary to continue this rating. ECBC will provide a repayable contribution of 50 per cent of all costs incurred to a maximum of $30,000.

For Further Information Contact:

Scott MacAulay, President
Glenghorm Beach Resort
Ceilidh Country Lodge
(902) 295-3500

Emerson Allen, President
The Clansman Motel Limited
Tel: (902) 794-7226

Desmond Moffett, President
Castle Moffett
Tel: (902) 756-9070

John Pino, President
Broadwater Inn and Cottages
Tel: (902) 295-2576

Earlene Busch, Owner
Chanterelle Country Inn
Tel: (902) 929-2263

William Hunter, Partner
The Worn Doorstep Bed & Breakfast
Tel: (902) 295-1997