News Release

For immediate releases                                                           July 27, 2001

PORT HAWKESBURY, N.S. -- Tourism industry research is ongoing to identify changes in the marketplace to ensure the industry meets consumer demands. Enterprise Cape Breton Corporation works in partnership with the tourism industry on this research and to ensure the growing demand for quality accommodations and services is met.

"Cape Breton’s tourism industry is a vital part of the local economy employing over 6000 people locally. Tourists spend over $230 million on our Island each year, but we must be able to provide them with the products and services they want,” said Rodger Cuzner, Member of Parliament for Bras d'Or - Cape Breton, 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, works in partnership with tourism industry business people to ensure the Island meets the expectations of these visitors."

Two existing operations will expand and two new establishments will be created with Government of Canada repayable assistance totaling $504,000. The private sector investment totals approximately $1,049,000 and stretches from D'Escousse in Richmond Country to Cheticamp in Inverness County. (See attached backgrounder for a list of the projects).

Funding for these projects was provided for in the February 2000 budget and is therefore built into the existing financial framework.

In June 1998, the Government of Canada announced that $93.8 million would be set aside for the economic development component of the $730 million Fisheries Restructuring and Adjustment Measures (FRAM) in the four Atlantic Provinces. The amount available for affected communities in Nova Scotia is $21.3 million. This amount is available over three years for long-term, sustainable economic development initiatives in communities and areas in Nova Scotia affected by the permanent downsizing of the Atlantic groundfishery.

On Cape Breton Island, ECBC works in partnership with key regional and community development stakeholders to implement the economic development initiatives of the FRAM program.

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:

Jennifer Savoy
Press Secretary
Office of the Honourable Robert G.Thibault
Tel: (613) 941-7291
Fax:(613) 941-7844

Tina Thibeau
Office of Rodger Cuzner, M.P.
Tel: (902) 578-5547

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

Backgrounder

Port Hawkesbury, N.S. -- Two tourism facilities on Cape Breton Island will upgrade and two will be established with Government of Canada assistance.

The Pilot Whale Lodge in Cheticamp will expand through the construction of four additional self-contained, winterized units. The project will also include aggressive marketing of the units. The total estimated cost of the project is $299,000 and ECBC will make a repayable contribution of $141,000 through the ACOA Fisheries Restructuring Adjustment Measures (FRAM) Program.

Flat Calm Country Inn will be established in D'Escousse as a five room country inn. The project will involve the renovation of an 1830's era building into a Victorian-style inn with ensuite baths, in addition to a private dining area for guests. As much as possible, the owners plan to restore the former hotel back to its original style. The project will help the Inn achieve a four star rating with the Canada Select Accommodations Rating Program. The total estimated cost of the project is $300,000 and ECBC will make a repayable contribution of $138,000 through the Business Development Program.

Chisholm's of Troy Coastal Cottages will expand through the addition of five one-bedroom, winterized housekeeping cottages to their current accommodations mix. The project includes construction of the buildings, landscaping to enhance the overall appearance of the facility, furniture and fixtures, sewer, water, signs and marketing. The project will help the Inn achieve a four star rating with the Canada Select Accommodations Rating Program. 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.

Big Pond Housekeeping Cottages will be established with six, two-bedroom, winterized housekeeping cottages with whirlpool tubs and propane fireplaces. The project will include building materials, furniture and fixtures, landscaping and marketing. The project will help the facility achieve a four star rating with the Canada Select Accommodations Rating Program. The total estimated cost of the project is $250,000 and ECBC will make a repayable contribution of $125,000 through the Business Development Program.

For Further Information Contact:

John Power, President
Pilot Whale Lodge
Tel: (902) 224-2592

Donald MacKenzie, President
Flat Calm Country Inn
Tel: (902) 226-1934

James MacDonald, Owner
Chisholm's of Troy Coastal Cottages
Tel: (902) 625-3285

Cyril MacPherson, Partner
Big Pond Housekeeping Cottages
Tel: (902) 828-2301