Ontario’s Tourism Industry New Regions

New Opportunities

Ministry of Tourism and Culture

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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

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Where Visitors Go

1

2

3

4

5 6

78 9

10

12

1314 15 16

1718 19 20

21 22 24 25 26 27 28 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49

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2329

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

Source: Statistics Canada, TSRC & ITS 2007

Nu

mb

er

of

Vis

ito

rs

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Where visitors come from

0%

10%

20%

30%

40%

50%

60%

70%

80%

Visits

Spend

Visits 79% 5% 14% 2%

Spend 56% 9% 20% 15%

OntarioOther

provincesUS Overseas

Source: Statistics Canada, TSRC and ITS 2007 

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Tourism Employment

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Tourism Challenges 2009 a challenging

year: WHTI Recession

Numbers reflect the challenge: ADR 5.9%▼ Occupancy 4.4%▼

02468

101214

Millions

US Inbound 2008

US Inbound 2009

Overseas Inbound 2008

Overseas Inbound 2009

International Visits

Down 12%

Down 13%

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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

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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

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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

Ontario Tourism Competitiveness Study

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The Discovering Ontario report had recommendations in four key areas:

Change how government and industry work togetherwork together – build industry capacity

Set standardsSet standards for success InvestInvest in private and public tourism product Reach outReach out to consumers before they get here and once they

arrive - re-define marketing roles at provincial and local levels.

Ontario Tourism Competitiveness Study (cont’d)

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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

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Regions: Southern Ontario

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Regions: Northern Ontario

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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 RTO’s 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

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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

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Moving Forward

RTO’s 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

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Contact informationBlair Harris Tourism Industry Advisor Ministry of Tourism and CultureOntario Government Beechgrove Complex51 Heakes LaneKingston ON K7M 9B1Tel: (613)-531-5581Fax: (613)-531-5585blair.harris@ontario.ca