Resorts in Nova Scotia Examined

NS: Shadow looms over Digby Pines’ future


DIGBY, NS] — The future of Nova Scotia’s Signature Resorts, including the Digby Pines, is up in the air and options reportedly include its sale.

The NDP government is about to issue a tender for consultant’s services to look at what might be done with the Pines, Keltic Lodge in Cape Breton, and Liscombe Lodge on the Eastern Shore.

All three resorts are icons in Nova Scotia’s tourism industry, and all three are in need of major renovation, according to an official at New Castle Hotels in Halifax.

The Connecticut-based firm took over management in 2002 and last year was the first time since then that the resorts lost money.

The three reported an operating loss of $717,382 for 2009-10 on revenues of $9 million, according to a provincial news report.


Digby Pines Golf Resort and Spa — John DeMings photo

Along with possible sale of the resorts — an issue complicated by federal ownership of the land beneath Keltic Lodge — the consultant is expected to look at other options, including continued government ownership, renovation, and continued use of a management firm, whether New Castle or another operator.

Pines employees are also concerned that closure of the resort is a possibility.

New Castle signed a 10-year management contract in 2002 and that expires after next season. The company’s fee is three per cent of total revenues.

An unofficial source at the Pines says the Digby resort had over $4 million in revenue, and returned about half of that to the region in wages. The main resort building is located within town boundaries and is a contributor to Digby’s tax base.