Province's resorts for sale

The Nova Scotia government is looking for a buyer or new operator for three provincially-owned resorts.

The Digby Pines Golf Resort & Spa, Liscombe Lodge Resort & Conference Centre on the Eastern Shore and Keltic Lodge Resort & Spa in Cape Breton employ about 300 people each summer.

Eight years ago, the province contracted out their management to Conneticut-based New Castle Hotels & Resorts, the same hotel group that operates the Westin Nova Scotian Hotel in Halifax. The contract expires in 2012.

Executive Director of Tourism for Nova Scotia John Somers said the province is advertising in the hope they can find potential investors. An ad in the Globe and Mail newspaper is seeking expressions of interest by the end of January.

"We believe these are iconic properties and have buckets of potential," said Somers.

But the properties could be a tough sell for the province. It's been two years since the resorts turned a profit. Higher costs for wages, electricty and the Harmonized Sales Tax resulted in a combined loss of a million dollars last year. Somers acknowledged the bigger issue is fewer customers.

"Revenues have been declining for a few years now. A lot of this has to do with changes to the market and visitor expectations," said Somers.

Although some of the resorts now offer spa treatments and high speed internet, New Castle estimates the properties could benefit from at least $11 million in upgrades.

Somers said all suggestions are welcome. While the province is seeking expressions of interest from potential buyers.  In the case of Keltic Lodge, it would like to change the operator of the Ingonish Beach property.  The province leases the facility from the federal government. 

Parks Canada owns the adjacent Highland Links Golf course which is a popular tourist draw in combination with Keltic Lodge. Last year, the resort's main dining room remained closed as a cost-cutting measure.