Tuesday, March 9 2021
How a Saskatchewan Business Battled COVID-related Revenue Declines Through Product Diversification
Like many small- to medium-sized Saskatchewan tourism businesses, Cypress Hills Eco Adventures Ltd. was hit hard in 2020. Operating as Tree-o-Six Adventure parks, the company has two locations (Cypress Hills and Waskesiu), and its main offerings are zip lining, climbing walls, frisbee golf, rope climbing, and axe throwing. The spread of COVID-19 in early 2020 led to public health orders that caused business restrictions and closures, and a severe drop in revenue.
Even when the initial restrictions were lifted, Tree-o-Six could accept just a fraction of the customers they would usually book. The prospects looked dim, with no way of knowing for how long restrictions would be in place.
Owner/CEO Jori Kirk began to explore ways in which he could diversify product offerings to help offset revenue losses. He consulted with Tourism Saskatchewan and applied to the Diversification and New Market Development Program. The plan was to add an electric fat bike rental product and some packaging with local food and accommodation operators. His successful application led to a grant of $20,000, to which Tree-o-Six Adventure Parks added another $18,790.
The initiative showed immediate results, with revenues of $34,428 and a project return on investment (ROI) of 88.75%.
"This program helped us generate an entirely new market that we would never have been able to tap into with our current services," said Mr. Kirk. "It may have been one of the best programs I’ve been able to receive in the past 10 years as a tourism operator in Saskatchewan. This program saved us the season."