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INDUSTRY ANALYSIS

Industry Analysis: Sea Kayaking 10F_OAD7400_010 The Outdoor Adventure Industry Professor Jeff Jackson December 1, 2010 Matthieu Starra: Outdoor Aventure student Algonquin College in the Ottawa Valley

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Table of Contents

1.0 Industry Barriers 1.1 History & Development 1.2 Trade Organizations 1.3 Certifying Bodies 1.4 Laws & Regulations 1.5 Start Up Barriers 2.0 Geographic Scope of the Industry 2.1 Scale & Health of the Industry 2.2 International Map of Where Activity/Commercial Operators Reside 2.3 Canadian Map of Where Activity/Commercial Operators Reside 3.0 Competition Profile 3.1 Big Player & Industry Leader Program overview 3.2 Factors For Success 3.3 Profitability 3.4 Market Structure 3.5 Strategy Canvas 3.6 Industry & Business Development Cycle 3.7 Seasonal Issues 3.8 Capital Investment 4.0 Marketing 4.1 Product Offering 4.2 Product Packaging 4.3 Pricing 4.4 Product Distribution 4.5 Promotional Strategies 4.6 Five Major Operator Marketing Comparison 5.0 Client Demographic Profile 6.0 Staffing Profile 6.1 Staff Levels 6.2 Life Span 6.3 Pay Rate 6.4 Personality & Demographic Profile 6.5 Training Level & Source of Training 7.0 Environmental Considerations 7.1 Significant Environmental Issues Confronting This Industry 7.2 Significant Land Management or Land Use Conflicts 7.3 Industry Environmental Impact and Mitigation Strategies 7.4 Significant Contributions to the Environment 8.0 SWOT Analysis 8.1 Strengths of the Industry 8.2 Weaknesses of the Industry 8.3 Opportunities for the Industry 8.4 Threats to the Industry 9.0 Sources 10.0 Appendices: Marketing Samples

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1.0 Industry Barriers

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History & Development

The first sea kayaks in Canada were found to have been created by the Inuits in the North approximately 5000 years ago and were used to hunt seals, whales, and walruses in open sea or caribou among rivers. These were built using whale bones or wood as the frame and animal skin to envelop it. Whale blubber was used to waterproof the boat to keep it afloat and the passenger dry in such cold climates. Although inventors of the sea kayak, the Inuits only had a few months during the summer with open water when the ice melted. The Aleutians and Greenlanders were the true sea kayak gurus who honed the design of the Baidarka sea kayak and mastered the art of rolling their kayaks after capsizing (Coast Mountain Expeditions, 2009). In the 1740s, Russian explorers discovered the Aleutians and their sea kayaks. Seeing as their primary concern was fur trade, they quickly noticed that the ingenious boats were extremely useful and effective transportation and hunting vessels. The Russians kidnapped the Aleutian

Figure 1.1 Ancient sea kayak hunters (Coast Mountain Expeditions, 2009)

hunters and brought them south until California, hunting along the way. This initiated the slow spread of the knowledge and development of the kayak throughout the North American continent (Coast Mountain Expeditions, 2009). In the early 1900s, the sea kayak‘s existence nearly vanished as new, more modern forms of maritime transportation were introduced by international settlers (Coast Mountain Expeditions, 2009). Luckily, in 1965, Werner Furrer, owner of Eddyline kayaking manufacturing company, designed his first fibreglass sea kayak. Eddyline was originally not interested in manufacturing

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sea kayaks; they dealt primarily with whitewater boats. However, within 1975 Furrer introduced the WT-500 as its first line of sea kayaks (Shuff, 2010). Three years later a touring model that had quite a large and clunky design, the Orca, was also introduced. Before this the majority of Americans either constructed their own moulds to construct their own boats or borrowed someone else‘s mould to do so (Shuff, 2010). These introductions paved the way for sea kayaking to become more of a commercial, less out-of-your-garage operation. Meanwhile the same was happening in Canada. In 1974 a man by the name of Steve Schleicher created a touring kayak with a rudder and hatches. It sat in the infant Mountain Equipment Coop store for two years until finally, its fame started to spread and Steve became a full-time business owner (Shuff, 2010). It was during this time when sea kayaking started becoming Whitewater slaloming had been in the Olympics already but, as people got older and wanted a more tame and new forms of entertainment, people had started bringing their whitewater boats into the ocean and using them there (Shuff, 2010). The first exclusively sea kayak retail store, Ecomarine, was started in 1980 in Vancouver, BC. The owner and founder, John Dowd, caused sea kayaking to become officially known as ―sea kayaking‖ with the writing of his book in 1981. Before, it had been called many other things such as kayak touring, sea canoeing, canoe touring, etc (Shuff, 2010). Not within long many other kayak retail shops opened around North America. The east coast was slow, however, in its adoption of sea kayaking. It was not until Harrie Tieken colonised the east that sea kayaking became more popular in that part of North America: ―There were ‗absolutely no more than 10 people‘ paddling open water in the East [in 1987]...‗People said the ocean is too dangerous for a kayak‘...‖ (Shuff, 2010)

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Seeing as though the sea kayaks were not even manufactured until the mid-1970s, the first commercial sea kayak guiding operations only emerged in the 1970s.

Trade Organizations

There are a handful of trade organizations indirectly representing the sea kayaking industry in Canada and all share similar mandates. They are the Tourism Industry Association of Canada (TIAC), Council of Tourism Associations (COTA, represents BC), Tourism Industry Association of Nova Scotia (TIANS), Hospitality Newfoundland and Labrador, and Tourism Industry Association of Ontario (TIAO). These tourism industry associations advocate nationally and provincially for the tourism industries in provinces where sea kayaking exists in Canada: the west and east coast and Great Lakes. Sea kayaking fits under the umbrella of the tourism industry and is therefore advocated for by these associations.

Figure 1.2 Tourism Industry Association of Canada (TIOC, 2010)

These trade organizations advocate against anything that might hinder the tourism industry and for anything that might better it. They represent tourism in the areas of aviation costs and air access, border access and policies, rising credit and debit fees, marketing Canada and respective provinces to other nations and provinces, effective and efficient methods of transportation, sustainable tourism, infrastructure development, industry competition, labour supply and staffing, product development, and the decline of American visitations to Canada and respective provinces (TIAC, 2010)(TIAO, 2010).

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Certifying Bodies

There are five certifying bodies that offer sea kayak instructing and skill certification in Canada: Paddle Canada, Ontario Recreational Canoe and Kayak Association (ORCKA), British Canoe Union (minimal presence in Canada but nonetheless a presence), Sea Kayak Guides Alliance of BC (SKGABC), Association of Canadian Sea Kayak Guides (ACSKG). All of these certifying bodies are professional in their relation with the public and within operations. They all also have similar programs offered: there are a varying number of skills certification followed by varying levels of instructor certification and finally followed by a varying level of instructor trainer certification. It is up to the instructor trainer themselves to instigate most of the courses that are run. Within the Canadian stage, although these bodies are extremely credible, their effectiveness to make their certifications standard in operator recruitment criteria is sub-par. It is difficult to find a sea kayak guiding operator within Canada who requires skills or instructor certification as a required qualification. It is feasible to assume by this fact that although these certifications provide valuable standards that can be followed when it comes to sea kayak skills and instruction, these available standards are not in fact standards being used in the industry. Also, the effectiveness of these certifying bodies are much lesser than if could be if there was only one certifying body. The fact that there are 4 makes it almost impossible for a common standard to arise because all four bodies have different standards and methods of providing programs.

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Laws & Regulations

Sea kayak businesses operating in national or provincial parks need to acquire Park Use Permits (PUPs) (Ministry of Sustainable Resource Management Economic Development Branch, 2003). Sea kayaking must comply with Small Vessel Regulations, Collision Regulations, and VHF Radiotelephony Practices and Procedures Regulations released by Transport Canada. These regulations outline that the use of a PFD, buoyant heaving line, paddle, bailer, sound signalling device, and navigation light between sundown and sunrise are mandatory aboard a sea kayak. The Collision Regulations describe that ―‘Every vessel shall use all available means to avoid collisions.‘ They describe passing procedures, distances to respect, maximum speeds, and the use of light and sound-signalling devices.‖ (Transport Canada, 2010). Finally, all VHF radio operators must have a VHF radio operator‘s license. ―The 1998 regulations [introduced in BC] require outdoor operators to apply for a Licence of Occupation for each area of Crown land they plan to use for more than 14 days in a six month period.‖ (Ministry of Sustainable Resource Management Economic Development Branch, 2003) All drivers of vehicles holding 10 passengers or more fall under the commercial driver category and must comply with all related regulations (Transport Canada, 2010). Sea kayak operators must comply with the Occupational Health and Safety Act when dealing with staff. ―Fisheries and Oceans Canada (DFO) has Marine Mammal Regulations which prohibit the disturbance of marine mammals‖ (Parks Canada, 2009) by sea kayakers.

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Start Up Barriers

There are few financial start-up barriers for sea kayaking businesses. All a new business essentially needs are 12 seats in new kayaks with required accompanying materials (paddles, spray skirts, PFDs, bailing pumps, first aid kits, etc.), a van and trailer to transport boats and clients, and a computer. This investment would range at approximately $85,000 (Ministry of Sustainable Resource Management Economic Development Branch, 2003). In the grand scheme of things, buying these things, the initial investment for a new business, is a minimal start-up cost. However, like any business, the scale of operation could be chosen to encompass much more such as land ownership, facilities, rental and retails shops, etc. An average scale start-up cost for a sea kayaking business in BC rested at about $250,000 (Ministry of Sustainable Resource Management Economic Development Branch, 2003): still a small sum in the big picture of business investments. Sea kayak businesses operating in national or provincial parks need to acquire Park Use Permits (Ministry of Sustainable Resource Management Economic Development Branch, 2003). A significant start-up barrier is direct competition. Most of the good sea kayaking sights in Canada are already being commercially explored. There is an estimate 150 kayak operators in BC alone (Ministry of Sustainable Resource Management Economic Development Branch, 2003). To start up a business in BC, one most have a very unique business plan to distinguish themselves from other operators. One must also have appropriate geography to attract guest and clients; if there is no water, there is no sea kayaking.

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2.0 Geographic Scope of the Industry

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Scale & Health of the Industry

There are approximately 150 sea kayak operators in BC alone (Ministry of Sustainable Resource Management Economic Development Branch, 2003). This leaves an estimate of approximately 250 operators in Canada. ―Estimates [for 2009] place the number of kayakers in [BC] anywhere from 20,000 to 60,000, with user day numbers ranging from 140,000 to 150,000‖ (Parks Canada, 2009). Almost 800,000 people travelled to do sea kayaking in Canada in 2005 (TAMS, 2008). The North American sea kayak industry is growing in health as the bulk of the population ages into their 50s and 60s. People are redefining their retirement and wanting to stay healthy: ―Boomers seek a varied and healthy lifestyle: wellness, travel and outdoor activity are its tenets. ‗Those people who used to take a vacation and sit around the pool or the tiki bar—now they want to be active,‘ says Scott Parmelee, Publisher of Outside magazine. ‗They want to come back and tell people about what they did.‘ At the same time, Boomers who were aggressive athletes, those who have spent time in the backcountry, are embracing a softer kind of recreation‖ (Outdoor Industry Association, 2006). This reality however, could be a substantial threat to the industry in years post Baby Boomer retirement. The international demographic situation is a win-win for the sea kayaking industry. This can be evident in the participation rates of sea kayaking that have continuously augmented since the turn of the millennium. From 2000 to 2001 kayaking in the US saw a 37% increase in participation. The percentage of new participants taking part in an outdoor activity each year can be a strong indicator of growth (Outdoor Industry Association, 2010). Research showed that in

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2009, 27.3% of American sea kayakers were first-time participants. Sea kayaking participation rates in North America have slowly increased in the last decade and show industry health. The average population is now looking for the ―experience‖ while going on vacation or traveling (Jackson, 2010). ―The active outdoor lifestyle has gone mainstream – representing wellness, quality time with family and friends, and a way to be outdoors in an urban center, in the frontcountry and/or in the backcountry.‖ (Outdoor Industry Association, 2006) The sea kayaking industry can give people this experience with physical activity, gourmet food, relaxing and quiet paddling in pristine water, quiet landscapes, and beautiful scenery. This reality proves to be promising for the sea kayaking industry and shows it is in good health in this sense.

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International Map of Where Activity/Commercial Operators Reside

These are the most popular locations for sea kayaking around the world and where the majority of sea kayak operators reside internationally. Yukon BC Quebec California

Baja

Scandinavia C

Nova Scotia & Newfoundland UK

Mediterranea n

Maine

Hawaii

Australia

Patagonia

South Africa

New Zealand

Figure 2.1 Map of locations of international commercial operators (Starra, 2010)

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Canadian Map of Where Activity/Commercial Operators Reside

This is a map of the big players in the sea kayak adventure industry and where the major operators reside.

Gros Morne Adventures Stan Cook Sea Kayak Adventures

Great Canadian Adventure Company Eastern Outdoors

Out For Adventure Wildheart Adventures

Coastal Adventures

Coastal Adventures Hinterland Adventure & Gear Pacific Northwest Expeditions

Voyageur Quest

White Squall Blackfeather

Spirit of the West Adventures

East Coast Outfitter Sea Sun Kayak

Coast Mountain Expeditions

Figure 2.2 Map of locations of Canadian commercial operators (Starra, 2010)

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3.0 Competition Profile

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Quathiaski Cove, BC Weymouth, NS

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Nanaimo, BC

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Surge Narrows, BC Heriot Bay, BC

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White Squall

Parry Sound, ON

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Black Feather

Parry Sound, ON

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Sea Sun Kayak

Tantallon, NS

East Coast Outfitters Coastal Adventures Stan Cook Sea Kayak Adventures Eastern Outdoors Gros Morne Adventures

Terence Bay, NS

Toronto, ON

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Tangier, NS

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St. John‘s, NL

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Ramea, NL

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Norris Point, NL

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Instruction

Quathiaski Cove, BC Nanaimo, BC

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Cottage Rental

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Photography

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Product Rental

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Whale Watching

Edmonton, AB

International Trips

2-4 Day Trips

Great Canadian Adventure Company Out For Adventure Wildheart Adventures Coastal Adventures Hinterland Adventure & Gear Pacific Northwest Expeditions Coast Mountain Expeditions Spirit of the West Adventures Voyageur Quest

Operator Name

Canadian Expeditions

Location

Day Trips

Bear Watching

Big Player and Industry Leader Programs Overview

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Table 3.1 The big players have many different products to offer and have diversified these offerings. This is a main factor for success. (Starra, 2010)

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Factors for Success

Perhaps the biggest factor for the success of the big players in the sea kayaking industry is the fact that they have been in the business before most current operators were even dreaming of opening a sea kayak guiding business (Loosmore, 2010). This reality gave them a chance to get established, create a reputable name, learn the tricks of the trade, and perfect their products and program offerings. It is a general rule and common sense that those having been around longer are better. The common population gets this. Not only have the big players had more time to perfect their business, they can use this fact as a marketing tool to attract clients: a

Figure 3.1 Industry leader who had certain factors for success in industry (Black feather, 2010)

promotional strategy new businesses cannot use even if they want to (Loosmore, 2010). Another major for the success of the big players in the industry is the diversity of program offerings. A sea kayak operator that offers strictly guiding as a product will not produce profit or will barely make a profit (Loosmore, 2010). The only operators that can make a living from sea kayaking have diversified and offer other products such as equipment rental, international travel, or retail shops. The mark of program diversity separates the big players that run sustainable businesses from the ‗mom and pop‘ operations that are struggling to survive (Loosmore, 2010).

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Profitability

The sea kayaking industry is not a money-making machine. Anyone who knows even a little about sea kayaking knows this; it is not a secret. This industry is primarily a labour of love for those who love sea kayak. The average operator struggles just to break even at the bottom line. Many owners run a sea kayak business on the side while their real, full-time, income producing job involves something else (Loosmore, 2010). The operators that do make enough profit for full-time staff to make a living and be able to support a family are few and these are considered the industry leaders who have been able to diversify their products (Loosmore, 2010). If the industry leaders are only profitable enough to provide for full-time staff‘s families, a clue is made obvious that the sea kayak industry is low on the profitability scale. The sea kayaking industry has suffered in sales in the last 2 years as a direct result of the recent global recession (Loosmore, 2010).

Market Structure

The sea kayaking market structure is monopolistic competition (Jackson, 2010). Sea kayak operators offer very similar programs, but there are enough differences for clients to choose what produce they will purchase based on more than simply price. Different operators offer whale and grizzly bear watching, expeditions, day trips, 2 or 3 day trips, international trips, afternoon trips, product rental, and photography. It is easy to start up a sea kayaking business, as well as shut one down. These facts lead us to believe the sea kayak market structure is a monopolistic competition.

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Strategy Canvas Figure 3.1 Factors sea kayak operators compete on (Starra, 2010)

12 High 10 8 6 4 2 Low None 0

Industry Leaders Mom & Pop Businesses

Industry & Business Development Cycle

The sea kayaking industry is on average in or slightly further along than the development stage of the business cycle. As a whole it has expanded its product offerings in size and to more than just one kind of sea kayaking. There is now animal watching built in to programs, expeditions, product rentals, photography and different length short trips (Economic Development Branch BC Ministry of Sustainable Resource Management, 2003). Also, the sea kayak industry on

average has at least secured its financing for fixed assets. This can be seen by the rather large number of sea kayak businesses who have been around long enough that if they had not secured their fixed asset financing, they would have shut down by now. These realities distinguish the

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industry being in the development stage rather than the inception stage. However, how do we know this industry is not in the growth stage? The two clues are that there are still a large number of businesses who have managers leaving the field to maintain the office or operations part of the business. Businesses in the growth stage have managers overseeing staff, not working alongside them. Although there are some companies that this is the case, the general industry has not reached this point. Also, the majority of operators have not been able to expand their assets within the business to enhance value proposition. There is not one sea kayak operator in Canada that has a resort built on the backbone of sea kayaking. Therefore, sea kayaking is in the development stage of the business cycle.

Seasonal Issues

Most major operators operate year round even if they do not offer products close to home and at usually functioning locations. Although BC remains mild enough to run program all year round, the Great Lakes, east coast, and NL do not and are too cold to attract the average sea kayaking client. This has opened the playing field to run most international trips during the winter, when the market is less focused at home in Canada and more on getting to a warmer climate. Operators such as Black Feather are available for trips to Mexico and Chile almost every day from October until April (Black Feather, 2010). This new product offering has proved to be one of Black Feather‘s products generating the most income (Loosmore, 2010). Although most major businesses operate year round, the majority of sea kayak businesses in general do not. Seeing as though the majority of these are a secondary line of work to owners as

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a labour of love, they close during the off-season in order for owners to resume regular work (Loosmore, 2010).

Capital Investment

The initial capital investment for sea kayaking businesses is minimal in the grand scheme of things. All a new business essentially needs is a total of 12 seats able to bear passengers in new kayaks with required accompanying materials (paddles, spray skirts, PFDs, bailing pumps, first aid kits, etc.), a van and trailer to transport boats and clients, and a computer. This investment would range at approximately $85,000 (Ministry of Sustainable Resource Management Economic Development Branch, 2003). In the grand scheme of things, buying these things, the initial investment for a new business, is a minimal start-up cost. However, like any business, the scale of operation could be chosen to encompass much more such as land ownership, facilities, rental and retails shops, etc. An average scale start-up cost for a sea kayaking business in BC rested at about $250,000 (Ministry of Sustainable Resource Management Economic Development Branch, 2003): still a small sum in the big picture of business investments and not an expensive industry to operate in.

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4.0 Marketing

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Product Offering

The average sea kayak operator sells a guided day-trip and expedition and not much more. However, seeing as there are so many tiny sea kayak businesses, the ‗average operator‘ does not indicate what the healthy, industry leading, big players in this industry are selling. The average healthy business offers guided day trips, multi-day trips, equipment rental, and another product such as wildlife viewing, a retail shop, mothership tours, or international trips.

Product Packaging

A classic sea kayaking trip has typical inclusions in the package. Guided trips promise the inclusion of meals, one or two guides, needed equipment, safety as a priority, skill and team building, physical fitness improvement, an educational experience, and a memorable experience. Some packages include travel to the put in and from the take out to a central location. Some operators, few in numbers, are the provider of airfare to the sea kayak destination. This is quite rare. Some packages also require clients to bring certain equipment of their own.

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Pricing

Product offered Day Trips 2-4 day Trips Multi-day expeditions

Price range $50-125 $229-2000 (Mostly dependant on length and destination) $600-7700 (Mostly dependant on length and destination) Table 4.1 Range of prices for sea kayak products. There is much variance in price as exotic destinations and long expeditions are added to the mix. (Starra, 2010)

Product Distribution

The vast majority of product distribution is done via the web. ―Over 3 in 4 sea kayakers [in BC] rely on the internet (77%) for travel planning‖ (Tourism British Columbia, 2009). The majority of these will book a trip online at an operator‘s website. The other percentage of people will print and mail forms to register. Rental and retail product distribution is done on site from the rental/retail shop.

Promotional Strategies

Google Adds is a very effective means of promoting a sea kayak product that is used by many sea kayak operators. Since sea kayaking is such a small niche market in the world of tourism, a tool must be used to weed out the vast number of tourists from those who want to sea kayak (Loosmore, 2010). In addition, seeing as though the majority of tourists shop by destination, sea

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kayak operators want to be made known to people who are shopping for a cruise because they are still in the same target market (people 50-60 years old) (Loosmore, 2010). Google Adds does just this. Trade shows and brochures are becoming less and less popular, effective, and cost efficient. Many trade shows are having to group into one show because of the lack of operators willing to sign up (Loosmore, 2010). They are simply too time consuming and do not generate enough exposure. Brochures lie in the same category because of the new popularity and mass usage of the web. Promotions can now be done through e-newsletters or online catalogues when it was not possible some years ago. These new methods generate big increases in exposure while eliminating printing costs; the promotion simply has to be created and sent out. Black Feather will send out an e-newsletter highlighting certain trips, and within the next day will sometimes receive 25 new inquiries about the trips highlighted in the promotion (Loosmore, 2010). Although brochures still have their value and place in a promotional strategy, the majority of promotions are now done through the effective means of the internet. Trade shows are becoming less and less used in the sea kayak promotion strategy.

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Five Major Operator Marketing Comparison

Industry Leader Black Feather

White Squall

Stan Cook Sea Kayak Adventures

Product

Price

International trips:  15-16 days  Sea kayaking, cultural exploration, astonishing scenery, intermediate-high skill level required, animal viewing, chartered aircraft, icebergs, exploration, wilderness Expeditions:  5-14 days  Sea kayaking, astonishing scenery, intermediate-high skill level, cultural exploration 2-4 day trips:  Sea kayaking, astonishing scenery, beginner-intermediate skill level, cultural education Expeditions:  5-7 days  Sea kayaking, beautiful scenery, island exploration, astronomy education, beginner-intermediate skill level, linear or central camp based travel 2-4 day trips:  Sea kayaking, beautiful scenery, island exploration, astronomy education, beginner-intermediate skill level Day trips:  Family or private trips  9am-5pm  Lunch not provided  No skill required  Island exploration Day Trips:  Snacks and/or lunch, all necessary equipment, fully guided  2.5, 4 hours, or full day  Morning or afternoon  Cascading waterfalls and caves, whales and icebergs in season, cliff hiking

$4750$7695

Promotion     

Website Catalogue E-Newsletter Brochure Old player in industry

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Two Newsletters Website Blog Brochure

$995$2395

$495$995

$930$1195

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$120$140

$99$149

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Website E-Newsletter YouTube videos Adds and photos in magazines

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Pacific Northwest Expeditions

Spirit of the West Adventures

5 day trips:  sea kayaking, coastal walking, iceberg viewing, cultural exploration, whale watching Expeditions:  5-6 days  Sea kayaking, wildlife viewing, beaches, island exploration, beginner-intermediate skill level 3-4 day trips:  Sea kayaking, wildlife viewing, island exploration, beginner-intermediate skill level Expeditions:  5-6 days  Sea kayaking, scenery, wildlife viewing, intermediate-high skill level Mothership tours:  5-7 days  Base camp on ‗mothership‘  Sea kayaking, scenery, wildlife viewing, beginner-intermediate skill level  Convenience & luxury Base camp tours:  4-6 days  Sea kayaking, scenery, wildlife viewing, beginner-intermediate skill level

$2390 +tax

$1250$1495

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Website Email list Skype

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Website Catalogue Brochures Newsletter Blog Virtual sea kayaking tour

$525$1060 +tax $950$1295

$1995$4595

$1145$1495

Table 4.2 Comparison between the product, price, and promotion of five major sea kayaking operators. (Starra, 2010)

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5.0 Client Demographic Profile

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Client Demographic Profile

The majority of Canadian sea kayakers reside in BC, followed by Quebec, Ontario, and finally Alberta. Sea kayakers reside in all provinces save Manitoba. The cities with the highest population of sea kayakers, in descending order, are Vancouver (14%), Calgary (10%), Montreal (8%), Quebec (8%), and Toronto (8%) (Tourism BC, 2009). The majority of sea kayakers are in their mid-20s to mid-30s. The next largest age demographic of sea kayakers are in their mid-40s to mid-50s, followed by mid-30s to mid-40s. All in all the majority of sea kayakers are between the ages of 18 and 54. ―There are more female (57%) than male (43%) sea kayakers‖ (Tourism BC, 2009) in Canada. Sea kayakers in Canada are more educated and affluent than the average pleasure traveller in Canada. ―50% of sea kayakers have a university degree.‖ (Tourism BC, 2009). Almost 60% of sea kayakers generate a household income of over $60,000 annually, 30% of those generating over $100,000 annually (Tourism BC, 2009). Almost 50% of sea kayakers are married and have no children under the age of 18 (Tourism BC, 2009). The majority of sea kayakers start with a destination and plan a trip or outing accordingly. Within this importance, conditions within the destination are also extremely important: lots to do and, feeling safe, mid range accommodation, convenient access by car, and camping (Tourism BC, 2009).

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Friends and parents are the most influential in introducing paddlers to outdoor activities. Relaxation is the top reason cited for participation in outdoor activities by kayakers and rafters. (Outdoor Foundation, 2009)

The average Canadian sea kayaker psychographic:

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Wants healthy lifestyle and physical wellness

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Looking for more relaxing excursions that previously in life

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Wants to spend quality time with their spouse/partner & friends

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Wants many things to do/see in their destination

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Wants to feel safe

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Wants convenience

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Does not see retirement as sitting in a couch all day

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Wants to ―get away from it all‖

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Loves the outdoors

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Loves to travel

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Wants memorable experiences

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Is experiencing the freedom of an empty nest at home

There were 1.8 million sea kayak participants in the US in 2008 (Outdoor Industry Association, 2009). Almost 800,000 people travelled to do sea kayaking in Canada in 2005 (TAMS, 2008)

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6.0 Staffing Profile

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Staff Levels

The highest staffing levels are in the month of May-September. On average, businesses employ 3 full-time staff during the year and an additional 3 during the busy summer months. On average, businesses employ 1.5 part-time staff during the year and an additional 1.5 during the busy summer months (Tourism British Columbia, 2005).

Life Span

The average life span for a sea kayak guide is approximately 2-3 years (Loosmore, 2010). Seeing as the majority of operators are small on the scale of business size, a sort of family atmosphere is created. Guides are expected to stick around for more than a season. Also, there is much training provide to guides upon hiring if it is not existent. This training investment can prove to be a large loss if guides do not plan to make slightly longer term commitments to the company and also proves to be successful in holding guides for longer periods. However, although an average life span can be determined, there is a broad range of life spans of sea kayak guides. Some leave after one season while others stick around for 25 years or more (Loosmore, 2010). If a guide lasts longer than the average life span, it is most likely this person will continue working as a guide, at least in the on-season, for a long-term period of time.

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Pay Rate

The average apprentice or beginner guide working at Black Feather would make approximately $90/day. More experienced guides and trip leaders make between $100-150/ day depending on experience and level of certification. In addition to this, a $5-12/day tip is expected from each individual client. Therefore, the average guide working at Black Feather makes between $95-162/day (Taylor, 2010). It can be deduced, seeing as Black Feather is quite a high profile sea kayaking operator that treats its employees well. The average guide‘s pay rate will be slightly lower than the average Black Feather employee‘s.

Personality & Demographic Profile

It is impossible to pinpoint a common demographic for sea kayak guides because there is none. Sea kayak guides can be as young as 15 years old when they are hired as an apprentice guide or guide in training. This ranges to guides who have been working in the industry for 25 years or have been in the industry so long that they have been around since their parents were guides. This shows a large age range in the demographics of a sea kayak guide and not one age group is predominant over another (Loosmore, 2010). There are not more males than female guides and vice versa. There is not a higher volume of educated guides than non-educated guides and vice versa. It is nearly more useful saying what a sea kayak guide is not rather than what a guide looks like.

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Sea kayak guides need to love the outdoors and be outgoing, friendly, fun, hard working, and available. They are there to serve clients, take care of their needs, and create a memorable experience for them. Clients expect to be entertained, get to know their guide, and be able to relax. In order to meet these expectations, guides need to work hard to allow clients to not work hard, be friendly and approachable, and create a positive and fun atmosphere. The guide must offer and must be available to do virtually anything that the clients want. Sea kayak guides also need to be polite seeing as though the majority of clients are between 50 and 60 years of age and expect a positive and respectful atmosphere on trips (Loosmore, 2010). The personalities of sea kayak guides fit these requirements.

Training Level & Source of Training

Training to be a sea kayak guide can either take place in house or by pursuing certifications on one‘s own time. Any training that is required by an operator that a new employee does not have will be given to them in training. This training might come off a pay cheque (Loosmore, 2010). Common training level among guides includes wilderness first aid or higher, swift water rescue training, sea kayak skills level 1 (certification or equivalent training), kayak instruction (certification or simply training). The average sea kayaking operator has three stages of guiding: apprenticeship, assistant trip leader, and trip leader (Loosmore, 2010). The apprentice is new to guiding and must be monitored and taught how to lead trips effectively, safely, and in a way that maximizes return on investment. The apprentice has little say in decision making and leading or trip planning. This stage may take up to a full season. Assistant trip leaders are more valued and

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respected as guides and have more responsibilities in areas of leadership, decision making, and trip planning. As ATL gain respect and trust from supervisors, they may be given trip leader responsibilities. This stage may take up to a full season. Trip leaders are the most valued and respected of guides. Sea kayak TLs oversee the whole trip and are report only to the manager or supervisor. To become a trip leader it may take more than a season of being an ATL.

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7.0 Environmental Considerations

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Significant Environmental Issues Confronting This Industry

There are some any environmental issues confronting this industry. One major issue confronting the industry is the pollution of waterways. Take Lake Ontario for example. There is not one sea kayak operator on this lake because no one wants to pay to paddle or swim in the water. ―The sustainability of the Great Lakes ecosystem is threatened. The ecosystem continues to experience ongoing biological, physical and chemical stresses, as well as new and emerging challenges like invasive alien species, new chemical contaminants and the impacts of climate change‖ (Environment Canada, 2010). People rent boats to go onto the lake and view Toronto and other beautiful sights but are not willing to be in contact with the polluted water. We see, however, numerous operators in waterways where the water is still pure and pristine. As more pollution is dumped into waterways, less people will want to sea kayak in them. At first glance one would guess that higher-than-normal water levels would be a confronting issue to this industry. Higher water levels mean less inter-tidal zones, major wildlife viewing and camping spots for sea kayakers. However, this is not the case: ―Over the ten-year period 1998– 2007, water level conditions [have been] typically normal when compared to the past 30 years in most drainage regions [in Canada]‖ (Environment Canada, 2010).

Significant Land Management or Land Use Conflicts

Sea Kayaking as a whole does not conflict with other activities for land use. Although sea kayaking, canoeing, and sailing often share the same land use, rarely do conflicts arise between

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them. The real conflict, or more like interactions of disagreement, involve sea kayak commercial operators and national or provincial parks (Loosmore, 2010). It took Wendy Grater, owner and founder of Black Feather, canoe and sea kayak guiding company, approximately 10 years of working and discussing with Nahanni National Park Reserve to allow for the Nahanni River to be run commercially by canoe. This long labouring and partnering with parks is also done to allow sea kayak trips to be run commercially in certain places in Canada (Loosmore, 2010). This process can be as lengthy as it was for the Nahanni River. It involves evaluations of the local ecosystems to ensure they can handle commercial operations and development of guidelines to be followed by commercial operators (Loosmore, 2010). These guidelines are not usually hard to follow for the industry leaders who are already operating at a very professional level but can be barriers to the smaller, less advanced sea kayak operators (Loosmore, 2010). Park Use Permits can be a ―pain in the ass‖ (Loosmore, 2010) to acquire and require a ton of paperwork and interaction with parks.

Industry Environmental Impact and Mitigation Strategies

Sea kayaking, when done with the environment in mind, does not leave a very large ecological footprint compared to many other outdoor activities. There is not large land use like in skiing and snowboarding where an entire side of a mountain must be cleared to make room for a lift. However, sea kayaking can impact the environment in a considerable way nonetheless.

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The first mitigation strategy used by this industry is the following of Leave No Trace principles which helps leave a very small ecological footprint (SKABC, 2008). The 7 principles include: 1. Planning ahead and being prepared 2. Camping and travelling on durable surfaces 3. Proper disposal of waste (human and garbage) 4. Leaving what is found where it is found 5. Minimizing campfire impacts 6. Respecting wildlife 7. Being considerate of other visitors. For a full understanding and deeper knowledge of Leave No Trace principles, go to: www.leavenotrace.ca The second mitigation strategy used by this industry is following Wildlife Viewing Guidelines (SKABC, 2008). Being aware that human presence impacts the behaviour patterns, habitat, and stress levels of wildlife is crucial. In some cases repeated viewing of the same animal or species can negatively impact its mortality rate. Sea kayaking also often offers a larger threat than other disturbances such as motorboats. Sea kayakers are smaller and more silent and can be perceived by wildlife to be ‗creeping up on them‘ and thus become a more extreme harassment to marine creatures. In addition, kayakers like to stay closer to shore than the average disturber, residing in ―the inter-tidal zone where most species feed and find protection‖ (SKABC, 2008). Some of the Wildlife Viewing Guidelines include: 

Not viewing marine mammals closer than 100m away



Approaching whales from the side and not from the front or behind

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Moving in a direction parallel to a whale



Do not harass animals and not approach it more than it would like you to



Do not swim with marine mammals



Stay off nesting sites

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This list is not extensive. For more information go to http://www.env.gov.bc.ca/bcparks/explore/wild_gen.html The last mitigation strategy used by this industry is to report Cetacean sightings. Many cetaceans viewable by sea kayakers on the coasts of Canada are either endangered or threatened (SKABC, 2008). These species need to be researched in effort to ensure their survival. Help from the public is crucial to be able to conduct full research on these animals (SKABC, 2008). Another significant impact generated by the sea kayak industry is that of the retail sector. ―Research published by Outdoor Industry Association in 2006 estimated the industry generated annual retail sales of $46 billion in apparel, footwear, equipment, accessories and services [in the US]‖ (Outdoor Industry Association, 2010). This number shows a trend of large amounts of spending coming from the outdoor industry retail sector which includes sea kayak retail. With all the different synthetics, plastics, and manufactured materials in the retail world, this large spending affects the environment. Fossil fuels and metals, both non-renewable resources, are used to generate most of these materials. Every kayak, article of synthetic clothing, or piece of gear is slowly depleting the stores of these resources in the earth.

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Significant Contributions to the Environment

The major contribution to the environment the sea kayak industry makes is raising awareness of ecological impact. The average commercial operator is not a problem when it comes to respecting the environment, following LNT principles and Wildlife Viewing Guidelines because the outdoors is their office; they work outside day in and day out and therefore value keeping it clean and minimizing disturbances (Jackson, 2010). This is why awareness needs to be raised for the private sea kayaker and land user. Associations like the Sea Kayak Association of British Columbia, British Canoe Union, Sea Kayak Guides Alliance of BC, Paddle Canada, and ORCKA make available publications and materials that can be used to raise awareness and help the private sea kayaker become understanding of the impact he/she has on the environment. Another contribution the sea kayak industry has to the environment, however minimal, is providing researchers with information on wildlife that is viewing during an excursion. This helps research know more about impacts caused by human presence on wildlife and thus help minimize this impact (SKABC, 2008).

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8.0 SWOT Analysis

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Strengths of the Industry

The sea kayak industry as a whole is good at: 

Taking care of client needs



Offering memorable experiences



Adding a personal touch to line of work



Having little start-up costs



Being environmentally conscious



Following laws and regulations



Offering many different products between businesses



Providing quality programs despite low wages and profit



Promoting itself to a specialty niche target market



Keeping staff for more than one season



Maintaining a respectable reputation in the adventure industry



Sharing land and resources with other industries or activity groups

Weaknesses of the Industry

The sea kayak industry as a whole is bad at: 

Having one unified governing body regarding certifications, common practice, and industry standards



Making profit

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

Surpassing the development stage of the business cycle and entering into the growth stage



Attracting a large amount of clients compared to other outdoor activities



Leaving a large ecological footprint due to high retail sales

Opportunities for the Industry

The sea kayaking industry has opportunities that can be harnessed to grow in size, popularity, and quality such as: 

Involve further the younger portion of the population (youth and adults).



Have more operators offer international trips because they generate more profit than a Canadian expedition (Loosmore, 2010).



Growing obesity levels. ―Outdoor recreation occupies an enviable position at a unique time in American history—it offers a solution to the pressing problems of obesity and inactivity, and it‘s beginning to receive recognition as a major contributor to America‘s economic vitality‖ (Outdoor Industry Association, 2006).



Economy. As people have more disposable income, more people are willing to spend money on things they don‘t need, like a sea kayak trip or holiday.

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Threats to the Industry

The sea kayaking industry has threats that may cause it to diminish in size, popularity, and profitability: 

Baby Boomer population reaching a point where sea kayaking is no longer an option because of old age. This will significantly decrease the current target market population (Loosmore, 2010).



Maturity of the industry. Sea kayaking experienced much popularity in the mid-90s as the ‗new cool thing‘. This has faded and it has lost its coolness factor (Loosmore, 2010)



Economy. As people have less disposable income, less people are willing to spend money on things they don‘t need, like a holiday or sea kayak trip.



Growing obesity levels. As people become less fit, is can be more difficult to encourage people to become more active, go outside, and seek outdoor adventures.



Pollution makes sea kayaking destinations less desirable

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Sources

Association of Canadian Sea Kayak Guides, (2010), Retrieved from http://www.acskg.ca/Certification.aspx BC Parks, (2010), Wildlife guidelines, Retrieved from http://www.env.gov.bc.ca/bcparks/explore/wild_gen.html Black Feather, (2010), Calendar, Retrieved from http://www.blackfeather.com/calendar.htm Black Feather, (2010), Free catalogue, Retrieved from http://www.blackfeather.com/pdf/2010Schedule-Summer.pdf Coast Mountain Expeditions, (2009), History of the Kayak, Retrieved from http://www.coastmountainexpeditions.com/content/history-sea-kayak-arctic-modern-seakayaking-vancouver-island-british-columbia Environment Canada, (August 4, 2010), Water levels, Retrieved from http://www.ec.gc.ca/indicateurs-indicators/default.asp?lang=en&n=7FAFC303-1 Environment Canada, (October 5, 2010), Great lakes, Retrieved from http://www.ec.gc.ca/grandslacs-greatlakes/default.asp?lang=En&n=70283230-1 Jackson, J., (2010), Outdoor adventure industry class lecture Leave No Trace Canada, (2009), Principles of LNT, Retrieved from http://www.leavenotrace.ca/home Loosmore, F., (November 29, 2010), Personal interview Ministry of Sustainable Resource Management Economic Development Branch, (2003), Marine ecotourism sea kayaking tour operators, Retrieved from http://www.agf.gov.bc.ca/clad/strategic_land/blocks/cabinet/kayaking.pdf Ontario Recreational Canoe and Kayak Association, (2010), Kayaking program, Retrieved from http://www.orca.on.ca/content/?page=20 Outdoor Foundation, (2009), Outdoor recreation participation report, Retrieved from http://www.outdoorindustry.org/images/researchfiles/2009%20Participation%20Study.pd f?78 Outdoor Industry Association, (2002), State of the industry report, Retrieved from http://www.outdoorindustry.org/images/researchfiles/4132_SOI2002.pdf?40 Outdoor Industry Association, (2006), State of the industry report, Retrieved from http://www.outdoorindustry.org/images/researchfiles/SOI.pdf?29 Outdoor Industry Association, (2009), A special report on paddle sports, Retrieved from http://www.outdoorindustry.org/images/researchfiles/2009%20Paddlesports%20Report.F INAL.pdf?79 Outdoor Industry Association, (2010), Outdoor recreation participation report, Retrieved from http://www.outdoorindustry.org/images/researchfiles/TOF_ResearchParticipation2010.pd f?121 Outdoor Industry Association, (April 28, 2010), Outdoor industry‘s economic impact resonating in Washington D.C., Retrieved from http://www.outdoorindustry.org/news.webnews.php?newsId=12419&newsletterId=129& action=display Paddle Canada, (2010), Sea kayak programs, Retrieved from http://www.paddlingcanada.com/sea-kayak-programs.asp

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Parks Canada, (March 9, 2009), Feasibility study for the proposed southern strait of Georgia national marine conservation area reserve: sea kayaking, Retrieved from http://www.pc.gc.ca/progs/amnc-nmca/cnamnc-cnnmca/dgs-ssg/itm5-/page7_e.asp Sea Kayak Association of British Columbia, (2008), Conservation, Retrieved from http://www.skabc.org/conservation.php Sea Kayak Guides Alliance of BC, (2010), Guides: certification, Retrieved from http://www.skgabc.com/guideresources.php Shuff, T., (February 1, 2010), Sea kayaking‘s early years, Retrieved from http://www.adventurekayakmag.com/features/features-kayaks/955-new-kayakcompany.html Stan Cook Sea Kayak Adventures, (2010), Adventures, Retrieved from http://www.wildnfld.ca/adventures.asp Taylor, J., (November 29, 2010), Personal interview Tourism British Columbia, (December 2007), British Columbia‘s sea kayaking sector (2005), Retrieved from http://www.tca.gov.bc.ca/research/ResearchbyActivity/pdfs/water_based/British_Columb ia_s_Sea_Kayakers_Report_2005.sflb.pdf Tourism British Columbia, (March 2009), Travel activities and motivations of Canadian visitors to BC: activity profile-focus on sea kayakers, Retrieved from http://www.tca.gov.bc.ca/research/TravelMotivations/CanadianTravelMotivations/PDF/R esearch_CAN_TAMS_BC_Water/Sea_Kayakers.pdf Tourism Industry Association of Canada, (2010), Canada‘s tourism voice, Retrieved from http://www.tiac-aitc.ca/english/menu_about.asp Tourism Industry Association of Ontario, (2010), Issues/advocacy, Retrieved from http://www.tiao.travel/index.php?option=com_content&view=article&id=9&Itemid=34 Transport Canada, (2010), Sea kayaking safety guide, Retrieved from http://www.tc.gc.ca/publications/EN/TP14726/PDF%5CHR/TP14726E.pdf Transport Canada, (January 19, 2010), Regulations, Retrieved from http://www.tc.gc.ca/eng/marinesafety/tp-tp14726-section5-818.htm Travel Activities and Motivations Survey, (March 2007), Travel activities and motivations of Canadian residents, Retrieved from http://www.tourism.gov.on.ca/english/research/travel_activities/TAMS%202006%20Ove rview%20Canadian%20Report.pdf Travel Activities and Motivations Survey, (October 17, 2007), Canadian travel market hiking, climbing & paddling while on trips of one or more nights, Retrieved from http://www.tourism.gov.on.ca/english/research/travel_activities/hiking_cdn.htm Wavelength Magazine, (2010), Planet kayak, Retrieved from http://www.wavelengthmagazine.com/planetkayak.html White Squall, (2010), Kayak programmes, Retrieved from http://www.whitesquall.com/programmes.html

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Appendices

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