Resorts in Canada find going tough

  • Article by: Dennis Anderson , Star Tribune
  • Updated: June 2, 2009 - 7:05 PM
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June traditionally is the busiest month for Canadian resorts, which are visited by more Minnesotans than residents of any other state. But the Canadian resort business is tough, as it is in Minnesota and elsewhere. How tough?

"Some Northwest Ontario resorts are down 80 percent in bookings, and some didn't even open this year," said John Naimain, a friend and owner with his wife, May, of Oak Lake Lodge (www.oaklakelodge.com). Oak Lake is on the English River system, about an hour's floatplane ride north of Lake of the Woods.

I have fished Oak Lake many times and the fishing is almost uniformly great. And not particularly expensive: Naimain charges $1,250 for three days at his camp, including floatplane ride in, plus all meals, boat and motor. According to Naimain, key challenges facing his and other Canadian fly-in resorts include:

The weak American dollar. For years, Canadian resorts (and other Canadian businesses) took payment in American dollars but paid expenses in Canadian dollars. The difference, historically, has been 50 cents or more. This year (and last) the currencies are trading about evenly.

The economy. "Very few people attended sport shows in the Midwest last year," Naimain said. "And those who did didn't book many trips. As an example, at the Chicago show, I typically give out 700 to 1,000 brochures. This year it was less than 50."

American anglers with drunken-driving convictions who are unable to enter Canada. "Some resorts have lost more business due to this than I have," Naimain said. "Our resort association has lobbied to change the Canadian entry restrictions, but with no success so far. It hurts. Last year I lost a group of 24 because a couple of their party had DWIs. And I lost another party of 12."

Airplane fuel and insurance costs. "Gas costs are up again in the last few weeks, and the increase will be reflected in costs our floatplane contractor charges me," Naimain said. "Airplane insurance costs are high, also, and those are reflected in what I pay to get my clients to camp."

Naimain says he will survive because his camp is paid for. "I'm established," he said. "But others are just closing up, or have closed up. A lot of camps are for sale."

Dennis Anderson • danderson@startribune.com

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