U.S. company’s domination of Banff and Jasper attractions raises questions, say competitors

An American company’s growing ownership of prime tourist venues in Banff and Jasper national parks is tightening and should be halted by the federal government, say rivals.

Arizona-based VIAD, which its rivals say now controls 85 per cent of the traffic to the major paid sightseeing venues in Canada’s most iconic and visited national parks, is set to increase its dominance and undermine affordability, say operators of competitive venues.

“Federal regulators are supposed to prevent this (anti-competitive behaviour), but Parks Canada is handing these Canadian crown jewels to an American company,” said Adam Waterous, who operates Norquay, which runs not only a ski hill but summertime attractions that includes a chair lift.

“This is a major national scandal.”

He notes American firm VIAD through its subsidiary Pursuit operates the Banff Gondola at Sulphur Mountain, Lake Minnewanka Cruise, Columbia Icefield Adventure, Jasper’s Maligne Lake Cruise and the Columbia Icefield Skywalk, which comprise the lion’s share of that market of paid attractions.

It owns the Brewster Express bus line and 10 hotels throughout those parks (two are in Banff), while also operating the iconic Prince of Wales Hotel in Waterton Lakes National Park.

Since 2011, said Waterous, Parks Canada has approved VIAD’s applications for one new sightseeing attraction, an expansion of a tourist venue, eight hotel purchases and one hotel construction, which has boosted the company’s share of the market from 50 per cent to 85 per cent, said Waterous.

At the same time, Parks Canada has repeatedly turned down Norquay’s bid to build a gondola from the Banff townsite to its ski hill, insisting the plan was “found not to be feasible due to non-conformance with key park policy and legislation.”

That concentrated operation of sites leased from Parks Canada has enabled VIAD to boost prices while also increasing traffic to the marquee attraction of the Banff Gondola, which competitors allege is contributing to townsite vehicle congestion.

“The Bow River bridge is a well-known chokepoint,” said Waterous. “Parks Canada does not require VIAD to provide any kind of traffic mitigation.”

Repeated requests for comment from VIAD went unanswered, but on its website the company says it stands for honouring places where it operates.

“There is a rich heritage to many of our properties and locations,” the website reads. “We celebrate our past and strive to keep our history vibrant and meaningful.”

Businessman Waterous, however, says a new concern is VIAD’s recent $25-million acquisition of the Jasper SkyTram, which would boost its market share in both national parks to well over 90 per cent.

He calculated those market share numbers by comparing figures from VIAD’s 2020 investor presentation to those from rival attractions, including his own.

Norquay and the owners of Lake Louise and Sunshine Village, which operate their own summer gondolas, have lobbied Parks Canada to withhold its approval of that acquisition and demanded the Competition Bureau of Canada investigate VIAD’s practices which they say likely amount to illegal predatory behaviour.

Those include so-called bundling, where VIAD offers discounts on a package of its attractions at the expense of its Canadian-owned rivals. The American company’s detractors allege this could violate the competition bureau’s guidelines.

Even so, the company has used its monopoly position to hike prices on attractions like the Sulphur Mountain Gondola at four times the rate of inflation, say critics.

“When you have monopoly pricing power, you can dramatically increase prices, which is restricting access to iconic attractions in Banff and Jasper,” said Waterous.

In a July 12 letter to Parks Canada and the competition bureau, Lake Louise Ski Resort owner Charlie Locke said VIAD’s monopoly has thrown his expansion plans into doubt.

“As a result of this potential monopolistic situation with respect to sightseeing lifts and visitor attractions, the Lake Louise Ski Area and Summer Sightseeing Gondola is now having to re-evaluate its plans to invest in excess of $30 million dollars building a new mountain top lodge, and an additional $20 million in upgrading a lift to service visitors to Lake Louise and this mountain top lodge,” wrote Locke.

“It is a travesty that the major attractions in both Banff and Jasper Parks will be owned and managed by an American company whose primary goal is to maximize profits at the expense of Canadians and locally owned attractions.”

In the letter, Locke said his resort is heavily reliant on Brewster Express, which provides excellent service at a good price but added the bus line’s dominance has its downside.

” We have had to bring in other bus companies in the past when Brewster tried to take advantage of its monopoly in the Parks with respect to commercial large-scale busing which the ski areas use in order to reduce traffic and our carbon foot print,” he wrote.

In a phone interview, Locke was more diplomatic in his comments.

“(VIAD) are smart businesspeople and a very well-run company — they have the ability to offer options other operators don’t have,” he said.

“I can’t tell Parks Canada how to run their business.”

But Locke reiterated the current situation means he “can’t really bring in another gondola.”

While VIAD didn’t respond to requests for comment, on its website it noted its Jasper operations re-opened Aug. 9 following the park’s devastating wildfire and that it’s committed to the area’s recovery.

“Our commitment to Jasper is unwavering, and we will continue to support the people and invest in rebuilding Jasper, reaffirming its place as one of Canada’s most treasured destinations,” VIAD said.

Additionally, VIAD president Steve Moster trumpeted the acquisition of the Jasper SkyTram with the company predicting Parks Canada will quickly approve the deal.

“This attraction is a perfect strategic fit in Pursuit’s Banff Jasper Collection and the only sightseeing aerial ropeway in Jasper National Park. We will benefit from its deep competitive moat, economies of scale and scope, and the strong perennial demand for this iconic destination,” he said.

Waterous says the term “competitive moat” shows VIAD acknowledges its competitive invulnerability.

And in what Waterous suspects is retaliation for his bid to have VIAD investigated for alleged non-competition practices, the American company late last month ended a partnership that saw Norquay re-sell Banff Gondola passes in exchange for a fee — a move he contends is another anti-competitive act.

While Waterous said the competition bureau is now investigating VIAD over critics’ monopoly accusations (he said he’s been interviewed by its official), the bureau noted it couldn’t comment on the case or confirm if it’s being investigated due to a confidentiality policy.

Likewise, Parks Canada didn’t issue a comment on the issue but in an Aug. 19 email to Waterous, the federal agency’s president Ron Hallman said concerns over anti-competitiveness aren’t in its jurisdiction but that they would cooperate in any such action.

“Should the Competition Bureau delve into the topic, Parks Canada will collaborate with the Bureau,” he wrote.

That the government body says concerns over an unhealthy monopoly are outside its purview “is very surprising, given Parks Canada has approved VIAD’s projects and acquisitions in building its monopoly,” said Waterous.

[email protected]

X (Twitter) @BillKaufmannjrn