Tourism in Perspective

1
Tourism in Perspective

• Presented by the Tourism Advisory Council
• Prince Edward Island
• TIAPEI Annual Meeting, November 30, 2007
• Confederation Centre of the Arts

2
Looking Back

• TAC was formed in 2005 and the strategy was
  presented to industry in July
• Endorsed by industry,
  Provincial Government and
  ACOA
• Tourism Plans developed
  annually (2006 2007)
• 2008 Plan to be Presented at TIAPEI in March

3
Since 2005

• Accomplishments in Research, Product Development
  and Marketing
• Highlights include
• Tourism Research Centre
• New Research Platform
• Product Development Culture
• Improved Air Access
• New Markets Calgary
• Branding PEI
• Coastal Touring Route Revamping
• Major Festivals Events
• MCIT
• Cruise Ship Market
• Business Case for Investment - 3.2 Million
  Increase in Tourism Budget for 07/08 Fiscal Year

4
Progress

• Six successive years of decline leading up to
  2005.
• 2006 tourism activity was down
• Non resident bridge traffic was down 0.6
• Ferry traffic was down 3.8
• Air passenger enplanements were up 20
• Occupancy room nights sold were on par
• Tourism visitation estimated at 1.36 million
• 2007 occupancy rates are up 1.9 year to October
  room nights sold are up 3.5

5
Regional Occupancy Performance
Year to October, 2007
Occupancy Rate 2.3 Room Nights Sold 3.6
Occupancy Rate 3.4 Room Nights Sold 5.0
Occupancy Rate 2.7 Room Nights Sold 5.6
Occupancy Rate 0.4 Room Nights Sold 1.5
6
Tourism in Perspective

• 2007 is a turn-around year for tourism in Prince
  Edward Island
• Estimated 1.375 million non-resident visitors by
  year end, December 2007
• Projected non-resident expenditures of 294
  million
• Occupancy rates year to October show an increase
  of 1.9 province-wide 3.5 increase in room
  nights sold.

• ? 1
• ? 4

• ? 1

7
Reports from our Neighbours

• Nova Scotia YTD (November)
• Visitation of 1.7 million 1 Increase
• Room Nights Sold 2 Increase
• Museum Attendance 4 Increase
• Historic Site Attendance 5-6 Decrease
• New Brunswick YTD (September)
• Room Sales 5 Increase
• Occupancy Rate 2 Increase
• Indicator Attractions 1.9 Decrease
• Newfoundland YTD (September)
• Visitation of 412,300 2 Decrease
• Available Occupancy Rate 2.7 Increase
• Provincial Historic Sites 11 Increase

8
The Business Case for Tourism

• Tourism is a vital element of the PEI economy
• 7 of Prince Edward Islands GDP
• Tourism is 3.5 times more important to the PEI
  economy in comparison to the rest of Canada
• Tourism makes up 13 of total export earnings for
  PEI

Source Statistics Canada 2005, Provincial
Tourism Departments, CTC
9
The Vision

• In 2005
• 324 million in direct tourism revenue
• 7000 full time equivalent jobs
• 36 million in Provincial tax revenue
• Province invests 12.8 million

• In 2012
• 500 million in direct tourism revenue
• 10,700 full time equivalent jobs
• 56 million in Provincial tax revenue
• Provinces invests 21.9 million

10
Business Case Update

• Presented to Provincial Caucus February, 2007
• Presented to TIAPEI March, 2007

11
Business Case Update

• Budget for 2007/2008 Fiscal
• Approved an incremental 3.2 million in October,
  2007
• Approximately 50 is core budget increase
• Another 50 for Special Projects approved by
  Treasury Board this is an annual process

12
Where was the 3.2 million spent?

• On-Strategy
• New Markets Calgary Initiative
• Legends of Golf
• Delta Airlines Agreement
• Major Festivals and Events
• Tour de PEI
• Aerosmith Concert
• Existing program increases, such as
• Product Development Fund
• Marketing Program
• Genuine Island Experiences

13
How are we doing in visitation?
Visitation (millions)
inflation
2.8 million required
3.2 million infusion
Actual
Projected (Business Case)
14
How are we doing in occupancy rates?
40.4
40.3
42.2
Year to October
15
Business Case Next Steps

• Maintain special projects budgets
• Work with Tourism PEI to identify winning
  investments to present to Treasury Board
• Maintain core budget increases
• Request an additional core budget increase for
  2008/2009 Fiscal Year
• Based on
• Strategy and Update
• Business Case
• Tourism PEI Mobilization Plan
• 2008 Plan Presentation (March)

16
Looking Forward

• Half-way point in the strategy, The New Product
  Culture (2005-2010)
• TAC recognized the need to
• Assess our progress to date
• Evaluate new and emerging opportunities
• Verify the relevance of the strategy today
• Begin the process for 2010-2015 Strategy in
  2008/09

17
Strategy Check-Up

• Review committee agendas
• What has been accomplished?
• What is left to do?
• What opportunities are emerging since 2005?
• Institute an integrated process
• Common information
• (TRC Market Trend Presentations to all three
  Committees)
• Independent Facilitation

18
Overview of Planning Process
JULY 17 TAC Product Development Session
SEPTEMBER Presentation of Strategic Directions
to Tourism PEI
SEPTEMBER 14 Presentation to TAC Board Board
Committees Planning Session
AUGUST 27 TAC Marketing Session
AUGUST 27 TAC Research Session
SEPTEMBER ONWARD Tourism PEI Organizational and
Departmental Planning (TAC Consultations)
19
What were the Outcomes?

• Commitment to the existing strategy
• The New Product Culture The Prince Edward Island
  Strategy for Tourism Competitiveness, 2005 2010
• The Need for Increased Investment

20
Commitment to the Strategy

• The strategy is still very relevant tested
  against current trends, opportunities and market
  developments it holds up against the research
• Much has been accomplished
• Renewed enthusiasm starting to see success
• Still work to be done to complete agendas
  outlined in the original strategy need to stay
  focused
• Several new priority areas identified
  industry-verified opportunities

21
Number One PriorityIncreased Investment in
Tourism

• Tourism PEI requires additional resources to
  execute the strategy
• Without adequate funding the vision will not be
  realized
• There is a solid business case for investment in
  tourism

22
Committee Priorities

• Each Committee reviewed their agenda and
  identified their priorities.
• Result is that each committee has an updated
  strategy agenda.
• Commonalities amongst committees resulted in the
  primary tactical recommendations.

23
Primary TacticsImprove Collaboration

• Committed to improving communication and
  collaboration between the disciplines of
  destination management
• Research
• Product Development and
• Marketing
• Streamlining processes to improve integration
• Iterative Planning to maximize expertise

24
Primary TacticsConsistent Leveraging of Brand

• Developing on-brand products and experiences
• Test brand resonance, brand health
• Consistent brand message and profile across all
  marketing initiatives, internal and external

25
Brand Essence Award

• Dont forget about the new TIAPEI award for Brand
  Essence.
• The first award will be presented at the Spring
  TIAPEI Meeting.
• Details on peitac.com
  in the new year!

26
Primary TacticsResearch-Driven

• Better use of research tools and market
  intelligence in decision-making
• Integration!
• Leverage the resources of the TRC to the benefit
  of PEI as a destination
• Improve performance measurement
• Timeliness of indicators

27
Primary TacticsLeverage Technology

• Improve technology application
• Website (gentleisland.com)
• Use technology to communicate more effectively
  and efficiently with our markets
• Realize efficiencies of technology

28
Best Tourism Website Public SectorSilver Award
(Canada E-Connect)
29
Primary TacticsIdentify and Develop New Markets

• Maintain our key markets remains a priority
• Shift emphasis to new markets
• Geographical
• Socio-demographic
• Niche markets Evaluate
• Wellness/Spas
• Food/Culinary
• Changing Family Market

30
Season Results

• Occupancy Reporting
• Chris Jones, Tourism PEI
• Core Exit Survey
• Sean Hennessey, Tourism Research Centre, UPEI

31
Talking to Tourists
32
Thank you.