Hostel in Muskoka ON, Canada

Hello to everyone on hostelmanagement, I hope everyone is doing great.

A quick bit about me : I am an Englishman who has recently moved to Muskoka ON Canada and have noticed a gap in the market for cheap hostel type accommodation here. I am an avid traveler and have spent many months over the years backpacking and traveling on a budget. I have spent many nights in all sorts of wonderful, inspiring and sometimes filthy accommodation. I now consider myself to have a pretty good idea on what makes for a nice environment to stay in.

A bit about Muskoka and why I believe a hostel would be greatly appreciated here. Muskoka is a seasonal destination that sees and massive surge in visitors in the summer months when Torontians head up here (2-3 hours north) over the weekends to enjoy the beautiful lakes, crisp air and outdoor lifestyle. Many of Ontario's wealthier folk have beautiful cottages on the lakes and there is no shortage of $100+ places to stay. I assume there is however a percentage of less affluent Canadian's and foreign backpackers who would benefit from cheaper accommodation and feel that the area would become more accessible if the option was there.

Having not been based here for long and also having never opened a hostel I would like some advice from you guys, so if you can spare a moment that would be greatly appreciated. Here are my questions;

- what is the best way to gage if an area requires a hostel
- How do you set your pricing
- How long can you expect it to take before your hostel starts to break even from assuming a mortgage

Lastly I would love to hear from anyone who is running a hostel in a seasonal destination in Canada for some advice of covering costs during the winter months and the laws and legislation regarding running and owning a hostel in Ontario.

To everyone who has never been to Muskoka or even heard of it - http://www.discovermuskoka.ca/things-to-do-see.html

This truly is an amazing place!, come say hi sometime.