Feds Seek to Enhance Park Tourism: Where does that leave Stilo?
August 18, 2013
By Michael Scerbo
Two large service agreements are out for bid at the Grand Canyon National Park to provide a very long list of services for visitors.
According to the Parks Service:
“These two contracts are among the largest in the NPS with combined gross revenues of approximately $100 million per year, 951 guest rooms, 13 restaurants and bars with over 1600 seats, 13 gift shops, two grocery stores, an RV campground with 70 sites, transportation including mule rides, etc., on the South Rim of the Grand Canyon. Over the 15 year term of the contracts, the successful bidders’ gross revenue could be approximately $1.5 billion.”
The services include lodging, food services, an RV campground, a service station, as well as other services at the south rim. Right now Xanterra and Delaware North are providing those services. However the contracts are up for bid and the Parks Service has made some adjustments. The combined gross revenues of these two contracts are estimated at $100 million a year. It takes in 951 guest rooms, 13 restaurants and bars with more than 1600 seats, 13 gift shops, two grocery stores, an RV campground with 70 sites, and transporat5aion including mule rides.
The contract also includes valet parking, renovating the Maswik lodge, additional food vendors, and additional retail.
The additional enhancements are very similar to what Italian developer Stilo wanted to bring to its project in Tusayan. The major difference is that Stilo’s project is not inside the Grand Canyon National Park.
Given occupancy rates in Tusayan and the expansion in the park, Stilo does not seem to have a realistic business model. If the Park is taking on additional tourists, and businesses in Tusayan are able to handle to the existing traffic, that would not leave too much room for Stilo’s efforts.