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WET enough to go around

Three waterpark resorts and a fourth to come won't dry up the area's aquatic appetite, park officials insist.

By TOM JACKSON
tomjackson@sanduskyregister.com

A disappointing quarter at Great Wolf Lodge after two new competitors invaded Great Wolf's local den does not mean Erie County's ability to absorb new indoor waterparks has become saturated, businessmen say.

Great Wolf insists its problems are short-term, a businessman planning a fourth indoor waterpark in the Firelands says he plans to forge ahead and the local visitor's bureau is launching a new marketing effort.

Enclosed waterslides jut from the side of Castaway Bay, Cedar Point's water park resort in Sandusky. Despite the opening in rapid succession of three major water park resorts in the Sandusky area and a fourth,Coyote Falls, slated to open between Great Wolf and Kalahari, the people behind the parks insist there's enough business for all. (Register file photo)

Great Wolf, the first indoor waterpark in Ohio and still the only indoor waterpark in the area as recently as last summer, has discovered that life was easier when it didn't have competition.

Last week, the lodge's publicly-traded parent company, Great Wolf Resorts Inc., reported a $2.5 million loss during the second quarter of 2005.

Management cited a drop in occupancy at the Perkins Twp. lodge after Castaway Bay opened in November and Kalahari Waterpark and Resort opened in May, but also mentioned a slow start to the summer vacation season in the Midwest and a poor start for the company's new resort in Sheboygan, Wis.

Occupancy in Sandusky had been expected to fall 5 percent but actually dropped 15 percent, Great Wolf CEO John Emory said. He said the company would revamp its marketing, would react more quickly to changes in booking patterns, and said Great Wolf's success in the Wisconsin Dells showed it could deal with competition. July's numbers are expected to show an improvement, he said.

Wisconsin Dells boasts 18 indoor waterparks, including a Great Wolf Lodge, and three outdoor waterparks. Great Wolf has just opened 128 condominium rooms at its Wisconsin Dells lodge and also is planning to develop condominiums at its Traverse City resort, company spokeswoman Erin Ruppenthal said.

No plans have been announced to add condos to the Sandusky lodge, Ruppenthal said.

Dial Family Resorts of Omaha, Neb., announced plans to build the Coyote Falls Lodge, a fourth indoor waterpark in Erie County, on U.S. 250 near Ohio 2. The 48-acre site is a short distance north of Kalahari on the west side of Milan Road.

Mike Day, president of Dial Family Resorts, said Monday he had noticed Great Wolf's latest financial results but said he wasn't worried and remains excited about coming to Sandusky. Within the next few weeks, Dial Family Resorts will exercise its option to close on the property, Day said.

"Great Wolf Lodge is not shocked that all of a sudden they have some competition," Day said. "We are going forward. We are very excited about it. It's a tremendous market."

Plans for Coyote Falls call for a 400,000-square-foot building with about 350 hotel rooms and a 65,000-square-foot indoor waterpark. Day said Dial still plans to begin construction in spring 2006 and to open by spring 2008.

The Sandusky/Erie County Convention & Visitors Bureau, which begins its new fiscal year Oct. 1, has budgeted $25,000 to promote Erie County as a year-round destination, a campaign that's more plausible now that the area boasts three indoor waterparks, said Joan Van Offeren, executive director of the bureau.

Van Offeren said that as she works to expand the pie for everyone, she hopes to get matching funds and support from the indoor waterpark trio.

"Castaway didn't open until November and Kalahari until May. This is an opportunity to cast the word around," she said.

Van Offeren said Kalahari officials have told her they are "very pleased" with results so far and Cedar Point officials have said Castaway Bay is doing well.

Kalahari officials did not return calls Monday and Tuesday.

Cedar Fair officials said Tuesday that converting the former Radisson on Cleveland Road to Castaway Bay has worked out well for the company.

"For the quarter, both occupancy levels and average daily room rates at Castaway Bay improved from a year ago when the property was operated as a Radisson hotel, as did the resort's food, merchandise and game revenues during the period," Cedar Fair CEO Dick Kinzel said Tuesday in a news release.

Brian Witherow, Cedar Fair's vice president and corporate controller, said Tuesday he can't predict what will happen next year when Castaway Bay is competing against previous Castaway Bay numbers. But he said Castaway Bay benefits from the fact it can be promoted along with the Cedar Point.

Van Offeren downplayed Great Wolf's second quarter results, saying the whole area was hurt by the tourist season's sluggish launch.

"Quite honestly, we had a relatively slow start to summer around here," she said.
 
Van Offeren said she's talked to Coyote Falls officials about their plans and also got a call about a month ago from a possible waterpark developer in Denver seeking information about the area.

Register reporter Brandi Barhite contributed to this story.

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