Ontario

1
Ontarios Tourism Industry New Regions New
Opportunities

• Ministry of Tourism and Culture

2
Nature of Tourism Businesses

• 23 billion industry
• 300,000 jobs
• Large but fragmented
• Almost 152,000 businesses in Ontario provide
  goods and services for tourists, representing 17
  of the total number of businesses in 2007
• More than 90 are small and medium sized
  businesses with fewer than 20 employees
• Industry is widely dispersed
• Exists in virtually every part of the province

3
Where Visitors Go
4
Where visitors come from
Source Statistics Canada, TSRC and ITS 2007 
5
Tourism Employment
6
Tourism Challenges

• 2009 a challenging year
• WHTI
• Recession
• Numbers reflect the challenge
• ADR 5.9?
• Occupancy 4.4?

International Visits
Down 12
Down 13
7
Tourism Opportunities

• Long-term potential still significant
• Globally, tourism is growing steadily
• Still a huge US market that wants to travel
• New source markets have opened up (China, India,
  Mexico, South Korea)
• UN World Tourism Organization predicting 1.6
  billion international arrivals by 2020
• More Ontarians staying home our own residents
  are our biggest customers

8
Need Change to Support Industry

• Existing structure a barrier to achieving
  industry potential
• Over 100 organizations involved in tourism across
  the province (Destination Marketing
  Organizations, economic development agencies,
  municipalities, Chambers of Commerce)
• Many organizations small, financially fragile,
  especially in areas with lower levels of tourism
  activity
• Resources for marketing or product development
  often limited

9
Ontario Tourism Competitiveness Study

• Background
• Tourism challenges are not all new led to study
  commitment in 2007 election platform
• Final report released February 11, 2009 in
  Toronto
• The Discovering Ontario report was the product
  of
• 13 formal consultation sessions in 12 cities,
  with over 500 stakeholders
• 200 presentations and 200 written submissions
• 13 external research studies

10
Ontario Tourism Competitiveness Study (contd)

• The Discovering Ontario report had
  recommendations in four key areas
• Change how government and industry work together
  build industry capacity
• Set standards for success
• Invest in private and public tourism product
• Reach out to consumers before they get here and
  once they arrive - re-define marketing roles at
  provincial and local levels.

11
Regional Approach

• Establishing tourism regions, each with one
  Regional Tourism Organization (RTO), was a key
  recommendation in the Discovering Ontario report
• Goal is to create a stronger Ontario tourism
  industry and to strengthen its capacity to
  support economic growth working together is
  vital
• The regional approach moves the tourism industry
  forward through
• A strong centralized Regional Tourism
  Organization in each region
• Reliable funding
• Greater capacity for collaboration on industry
  issues
• Better coordination with the Ontario Tourism
  Marketing Partnership Corporation

12
Regions Southern Ontario
13
Regions Northern Ontario
14
Establishing an RTO

• Request for Expressions of Interest (RFEI)
  issued on January 26th and due March 1st were
  looking for
• Organizations working together with a broad base
  of support across the region and sub-sectors of
  the tourism industry
• A plan and commitment to develop a strong
  accountable RTO that reflects the region and
  delivers on the RTOs key roles and
  responsibilities
• A legal capacity to manage and oversee funding
• An effort to contribute existing resources to the
  RTO
• To date
• The industry demonstrated its leadership and
  commitment to working together resulting in one
  submission in each region
• RFEI submissions were reviewed by the Ministry
  and the Ministry (ADM) met with RTO proponents in
  each region to provide feedback
• Transitional groups are being implemented in each
  region
• Transition plans and priority projects plans are
  being developed
• The Ministry is preparing transfer payment
  agreements

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KINGSTON AND THE THOUSAND ISLANDS KINGSTON
OFFICE TERRITORY THE COUNTIES OF LENNOX AND
ADDINGTON, FRONTENAC, LEEDS AND GRENVILLE AND
THE UNITED COUNTIES OF STORMONT DUNDAS AND
GLENGARRY
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RTO Funding

• 2010 Ontario Budget confirmed 65 million in
  funding for tourism regions for 2010-11 and
  2011-12 to assist in the transition for RTOs
• From 2012-2013, there will be 40 million in
  ongoing funding to RTOs
• All regions, except Toronto and Ottawa, will see
  a significant increase in funding available to
  support tourism promotion and development
• Starting in 2012, industry will have the
  opportunity to collect a Regional Tourism Levy

17
Priority Projects

• Funding is available to the RTO transitional
  groups who identify specific initiatives and/or
  promotional activities that can be implemented
  quickly and will increase tourism activity and
  its economic impact in the region by
• Increasing tourist visitation and tourist
  receipts
• Extending geographic, segmented and/or seasonal
  market reach
• Improving the quality of visitor experience
  within the region
• Increasing investment in tourism
• Developing the industry within the region
• Project focus
• New / incremental / expanding activities
• Support for inter-regional and pan-provincial
  initiatives
• NOT for governance and administration

18
Moving Forward

• RTOs for each region are expected to be in place
  (incorporated) by Fall 2010. Transition groups
  have formed in each region to support this
  process.
• New funding will support new marketing and
  development
• By 2012-13, industry will have the opportunity to
  access ongoing funding through an RTL Regional
  Tourism Levy
• Opportunity for the industry is significant

19
Contact information

• Blair Harris
• Tourism Industry Advisor
• Ministry of Tourism and Culture
• Ontario Government Beechgrove Complex
• 51 Heakes Lane
• Kingston ON K7M 9B1
• Tel [phone]
• Fax [phone]
• blair.harris_at_ontario.ca