Canada Economic Development

Canada Economic Development

October 18, 2010 12:06 ET

Government of Canada Invests $29 Million in Groupe Le Massif's Major Project

Initiative promises success in the Charlevoix region

BAIE-SAINT-PAUL, QUEBEC--(Marketwire - Oct. 18, 2010) - Acting on behalf of the Honourable Denis Lebel, Minister of State for Canada Economic Development, Jacques Gourde, Member of Parliament for Lotbinière–Chutes-de-la Chaudière, took the opportunity of today's official launch of construction on The Farm to announce that Groupe Le Massif Inc. and its partners have been awarded $10,750,000 in funding from the Agency for their large-scale, four-season recreational tourism project in Charlevoix.

This project will require an overall investment of $230,000,000 and result in the creation of some 350 jobs, with an additional 350 jobs being created during the construction phase. This latest financial assistance brings to more than $29,000,000 the total amount of funding granted to the Groupe Le Massif project by the Government of Canada.

With the tourism industry posting strong growth internationally, Canada is faced with increasingly fierce competition. Indeed, people are travelling more frequently and have a vast choice of attractive destinations to visit. The Le Massif recreational tourism project, a powerful engine of growth, is supported by strong local determination to capitalize on the region's major assets in order to make the most of prevailing conditions. The initiative promises to help increase Charlevoix's drawing power and better position the area as a prime tourist destination. 

"The Government of Canada is proud to support this employment- and wealth-generating project, the substantial spinoffs from which will help revitalize the Charlevoix economy in a sustainable manner," commented Minister of State Lebel.

"In offering a unique place to experience nature, culture and eco-friendly communities, the Groupe Le Massif project will help better showcase this magnificent region well beyond its borders," explained Jacques Gourde.

Once in operation, this project is expected to generate some $36 million in annual economic spinoffs. Moreover, it is anticipated that tourists from outside the province will spend an additional $36 million per year in the Charlevoix region.

This contribution from Canada Economic Development will serve to fund certain components of the Groupe Le Massif project, notably the acquisition and restoration of locomotives and train cars for the operation of a rail shuttle service between Petite-Rivière-Saint-François and Baie-Saint-Paul and of a tourist train between Québec and La Malbaie, the development of a luge track at Le Massif and the creation of an integrated wellness centre and spa at Baie-Saint-Paul's Filbaie farm. Commercialization activities will also be carried out on markets outside Quebec.

The $29,095,000 in total funding from the Government of Canada includes the $10,750,000 contribution from Canada Economic Development as well as $12,220,000 granted through the Municipal Rural Infrastructure Fund, $4,840,000 through the Rehabilitation of Shortline Railways component of the Canada Strategic Infrastructure Fund and $1,285,000 through the Infrastructure Stimulus Fund.

See the attached backgrounder for further details on the specific project components funded by Canada Economic Development.

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Backgrounder

Groupe Le Massif's four-season recreational tourism project

Funding from Canada Economic Development

Component   Contribution – Description – Spinoffs  
Launch of a rail shuttle service

Société de gestion des équipements publics (S0GEP), in collaboration with Groupe Le Massif
  Non-repayable contribution of $3,442,000 for the establishment of strategic transportation infrastructure in the form of a rail shuttle service linking Filbaie farm (Baie-Saint-Paul) to Le Massif (Petite-Rivière-Saint-François). This component also includes an assessment of economic and tourism spinoffs. Total anticipated cost: $6,778,000.
Construction of a luge track; out-of-province marketing of Le Massif and the recreational tourism project

Le Massif Inc. and Groupe Le Massif Inc.
  Repayable contribution of $1,161,500 for the construction of a luge track in the Mont à Liguori sector, whose skiable area is operated by Le Groupe Le Massif. This new track will constitute a unique sports and recreational facility. This second component also includes marketing Le Massif and the entire recreational tourism project outside of Quebec. Total anticipated investment: $8,961,800.
Establishment of a wellness centre and out-of-province marketing of lodging component

Ferme Ambroise-Fafard Inc. and Groupe Le Massif Inc.
  Repayable contribution of $1,430,500 for the establishment of an integrated wellness centre and spa at Filbaie farm in Baie-Saint-Paul, infrastructure of strategic importance to the project's execution. This component also includes the out-of-province marketing of the project's lodging dimension for the 2009 to 2011 period. Total anticipated cost: $9,745,300.
Development and marketing of the Québec-La Malbaie tourist train

Train Touristique de Charlevoix Inc. and Groupe Le Massif Inc.
  Repayable contribution of $4,716,000 for the development and marketing outside Quebec of the tourist train running between Québec and La Malbaie (Pointe-au-Pic). This component includes the acquisition of railway equipment and its transformation for tourism purposes. Arising out of a vision to provide visitors with a top-quality guided rail experience, this tourist train excursion will be offered in combination with other Charlevoix products and services. The marketing activities covered by this funding run between 2009 and 2011.

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