Viability of Rural Hotels - How Many Rooms?

Snowmobilers stop for a brew at the Pioneer Hotel in Wiseton (pop. 96), 2006. Joan Champ photo

While hotels are one of the oldest and most common forms of business enterprise in small-town Saskatchewan, today, in most cases, they are hotels in name only. They do not rely on room rental for revenue. The rural hotel business is all about the beverage room. The sale of alcohol – mainly beer – is the primary source of annual operating revenues – or at least it was until the introduction of video lottery terminals (VLTs) in 1993.

VLTs at the end of the bar, Delisle Hotel, May 2011. Joan Champ photo

Since the 1970s, beverage rooms have been continuously renovated. Steak pits and other amenities have been added, and a wide variety of entertainment – shuffleboard tables, pool tables, karaoke machines and live bands – have been featured in bars across the province. In 1993, the VLT program was introduced, providing an additional source of entertainment – and revenue – for liquor-permitted hotels in rural communities.

Typical rural hotel room

Nevertheless, the small-town hotels still need to have a minimum number of rooms in order to qualify for a liquor license. In 1987, according to Sean Kenny’s report on the viability of rural hotels for the Saskatchewan Liquor Board, licensed hotels in communities with less than 200 taxpayers had to have a minimum of seven (7) rooms. Even at that, the hotels in these small towns had an occupancy rate of only 10 percent. Kenny estimated that only about two (2) percent of total rural hotel revenue came from the provision of accommodation. (Sean Kenny, “Viability Study of the Rural Hotel Industry in Saskatchewan; Project Report.” Regina: Saskatchewan Liquor Board, August 31, 1987, p.10)  

"Please go to bar next door for room rentals, thank you!" Sign in the lobby of the Delisle Hotel, May 2011. Joan Champ photo

 

On June 22, 1988, Graham Taylor, Saskatchewan’s Minister of Tourism and Small Business, told the Saskatchewan Legislature that he did not think it was necessary for rural hotels to have rooms. “The day of the rooms in the rural hotel, I think, in many cases has somewhat passed,” Taylor said, “and therefore it may be an advantage to hoteliers to not have it [the liquor license] tied entirely to rooms.” (Hansard, Saskatchewan Legislative Assembly, June 22, 1988) 

Room at the Delisle Hotel, May 2011. Joan Champ photo

Today, according to the Saskatchewan Liquor and Gaming Authority’s “Commercial Liquor Permittee Policy Manual” (2009), to qualify for a beverage room license, a hotel in a rural community must have a minimum of six (6) guest rooms. Sustained largely by off-sale revenues and VLT income, most of Saskatchewan’s small-town hotels are now just a shadow of their former glory days.

Budget Rooms - Daily, Weekly, Monthly - at Melville's Waverley Hotel, June 2006. Joan Champ photo

 

© Joan Champ 2011