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SOMBA K'E/YELLOWKNIFE - Yellowknife's first aurora tour operator is no more.

Aurora World, originally begun as Raven Tours in 1989, shut its doors for good on Nov. 7 after several years of declining business, according to board chair Darryl Bohnet.

Darryl Bohnet, board chair for Aurora World, said the business shut its doors after shareholders, faced with large overhead and severe cash flow issues, declined to invest necessary winter start-up money in the business this year. - Guy Quenneville/NNSL photo

"It was a difficult decision," said Bohnet, speaking at the NWT Tourism Conference last Friday.

When shareholders for the company declined to provide the necessary financing for the start of winter operations, set to begin three days before the closing, Aurora World essentially became insolvent, he said.

The steep decline in aurora customers began after 9/11.

"Raven Tours developed the Japanese aurora market," said Bohnet. "They were the primary drivers behind dramatically increasing aurora visitors to the North. They had 89 visitors in 1989 and they peaked with 13,000 aurora visitors in 2000. Our local market share at that time was 10,000.

"In 2001, 9/11 occurred and our Japanese visitors to the North declined by half to 6,500. Our local market share at that time was 5,500."

Factors such as the SARS outbreak, increased competition from Alaska and Scandinavia, decreased air capacity (Air Canada pulled direct flights from Vancouver to Yellowknife earlier this year), fuel costs and most recently the downturn in the world economy - all played a hand in the business' declining fortunes, said Bohnet.

"On a few days this past summer summer, we had one or two clients (with one) tour guide," he said. "At the end of the day, we actually lost money for those days. We need at least six guests per tour guide."

Aurora World employed a total of 26 people, six of them working full-time, according to operations manager Chris Johnston.

The closure has been made easier by the efforts put forth by Aurora Village to handle the clients who booked with Aurora World for the upcoming winter, said Bohnet.

"We have asked our Japanese suppliers for permission to move our incoming clients to Aurora Village," he said. "Aurora Village has done everything to facilitate this. And it's done primarily to protect the reputation of Yellowknife aurora to the rest of the world."

Bohnet ended his address with thoughts on how to attract more aurora viewers to the city.

"I believe that in order for the aurora market in Yellowknife to take that next major step forward, we need an airport of capable of handling large aircraft directly from overseas. It's got to be done," he said.

"This could also open up the German market that currently flies right over of us to the Yukon."

Now that Canadian Ex Aurora Tours and Aurora World have shut their doors, Aurora Village is the sole company in Yellowknife exclusively devoted to giving aurora tours.

Don Morin, owner of Aurora Village, which opened in 2000, said he did not see Aurora World's closing as an indication that the aurora market in Yellowknife is in decline. s

"Our numbers have increased every year, except for our second year of operation," said Morin.

Aurora Village began offering fall viewing tours three years ago. In 2005, 50 people took part. This year, 850 fall customers came through Aurora Village's doors.

"And we're expecting an increase in winter as well," said Morin.

Bohnet said he admired Aurora Village's strong performance over the years.

"Aurora Village made strong gains in the local market share, driven primarily by their excellent service," he said.

Owners of some Yellowknife businesses weren't surprised at news of Aurora World's closing.

"I knew they had problems for years," said Pierre Lepage, owner of Le Frolic and Chef Pierre's Catering Service, which did some catering for Aurora World when it entertained guests on Hideaway Island on Back Bay. "I'm surprised they lasted that long."

Ragnar Wesstrom, owner of Enodah Wilderness Travel Ltd., said while he's sad to see Aurora World go, its departure might have an upside.

"It could be a good thing for the industry to only have one major operator," said Wesstrom. "The Japanese clientele has declined the last couple of years and we don't really know what's going to happen this year or in the future with this economic distress in the world.

"I think there's only room for one operator, to be honest."

The aurora industry is on the verge of a major economic opportunity, James Pugsley, president of Astronomy North, said in a presentation at the conference mere hours before Bohnet's comments.

According to Pugsley, the 11-year solar cycle is about to enter what's called solar maximum, a period of high Northern lights activity. While unable to say precisely when solar maximum will hit, Pugsley said the period between 2010 and 2012 will generally be one of heightened activity.

"We're going to have more spectacular activities ahead," said Pugsley, likening it to having "Niagara Falls overhead."

Pugsley advised local tourism operators to begin preparing viewing packages or adding viewing tours to existing services in time for 2010.

"That's going to be a huge opportunity. The whole world is going to be watching," he said.