Here's a copy of my presentation at the Ontario's Southwest Conference in 2014. Communicating the contribution of tourism to the local economy can be a challenge. This presentation focused on bridging the gap between tourism and economic development including tips and tools to measure and report the value of tourism in Ontario’s Southwest to the decision makers in our communities.
2. Aileen Murray
• Economic development consultant
• 25+ years helping businesses and communities grow
• Clients include municipalities, counties, BIAs,
workforce development councils, economic
development agencies and the private sector
• Specializing in strategic planning, marketing and
communication
4. Goals for today’s
presentation
• Review economic development
terminology and concepts
• Prepare credible statements on the
contribution tourism makes to the
community
• Apply economic development goals to
tourism programming.
http://www.psdgraphics.com/backgrounds/bulls-eye-target/
5. Economic Development
“Improving the economic well being
of a community through efforts that
entail job creation, job retention, tax
base enhancements and quality of
life.”
The International Economic Development Council
6. Why Measure Economic Impact?
• Accountability
• Sponsorship
• Funding Programs
• Government support
• Community support
• Compare event performance
o To previous events
o To similar events in other regions
o To other events in the community
7. The Economic Impact
Statement
Tourism brought ______
visitors to the community.
These tourists generated
$_______ in economic
impact, ______ jobs for the
community and added
$______ to the local coffers.
Photo: http://allareoneplus.blogspot.ca/2012/03/quote-58-pride-megaphone.html
12. The History of
Economic Development
Industrial
Development
Investment
Readiness
Business Retention
& Expansion
Economic
Gardening
Creative
Economy
Knowledge
Workers
Free Agent
Economy
13. Net Change in Cdn. Employment
2007 - 2012
-245,400
805,800
-400,000
-200,000
0
200,000
400,000
600,000
800,000
1,000,000
Manufacturing Service Sector
13
Source: Statistics Canada, CANSIM, table 282-0008 and Catalogue no. 71F0004XCB.
14. Supply & Demand
Tourism System
POPULATION
Interest in Travel
Ability to Travel
TRANSPORTATION
ATTRACTIONS
INFORMATION &
PROMOTION
SERVICES
• Hotels/Motels
• Restaurant
• Retailing
Demand
Supply
15. Economic Development
Definitions
• Basic Industry – industries that
produce goods and services
sold to consumers outside the
region
• Non-basic industry – industries
that produce goods and
services consumed locally
Photo: http://www.sfl2000.com/wp-content/uploads/2011/03/Export-box.jpg
16. Tourism Economic Impact
Change in sales, income and jobs because tourists
came to the community and spent money there.
Guidelines: Survey Procedures for Tourism Economic Impact assessment of Ungated or Open Access Events and Festivals
17. The Multiplier
The ripple effect from the contribution of new
money to the community.
Photo: http://beta.images.theglobeandmail.com/b19/migration_catalog/article3966214
18. The Multiplier Effect
Photos: http://maytermthailand.files.wordpress.com/, http://www.crucell.com http://fourteenip.com
Direct Indirect Induced
Sales of goods &
services to tourists
ie. restaurants &
accommodation
Increased demand by
tourism businesses
ie. Food suppliers
Respending labour income
Ie. Shelter, food, clothing
19. The Multiplier
• Most impact at the centre
• Larger communities have larger multipliers
• Smaller communities have smaller multipliers
• Manufacturing multipliers are typically larger than
service industry multipliers
• Manufacturing multipliers ~ 2 to 3 net jobs for
every 1 new job
• Service industries <1.2 jobs for every 1 new job
created
21. What is a tourist?
Photo: http://blog.vegas.com/wp-content/uploads/2010/10/tacky.jpg
22. Same Day Domestic Tourist
• Out of town trip that takes the traveller at
least 40 km. (25 mi.) one way from home
• Not for commuting or a routine trip
Source: Guidelines: Survey Procedures for Assessment of On-Site Spending at Gated Events and Festivals p. 90
23. Overnight Domestic Tourist
• Out of town trip of at
least one night away
from home
• Not for commuting or
a routine trip
Source: Guidelines: Survey Procedures for Assessment of On-Site Spending at Gated Events and Festivals p.
90
Photo: http://www.journeyetc.com/wp-content/uploads/2010/08/bellboy.jpg
24. Special Event Tourists
Ministry of Tourism does not
include:
o Locals
o Time switchers
o Casuals
Source: Guidelines: Survey Procedures for Tourism Economic Impact Assessments of Gated Events and Festivals p. 19
26. 15.8 Million VisitsRTO 1 in 2011
4.3million overnight11.4million same day
Source: Ontario Ministry of Tourism, Culture and Recreation with data from Statistics Canada
27. Tourism’s Contribution to
Ontario’s Southwest
$1.46 Billion
Source: Statistics Canada Travel Survey of Residents 2011
Cdn Total Tourism
Receipts 2011
28. Average Visitor
Spending
$92per person
Source: Ministry of Tourism & Culture Regional Tourism Profile RTO 1, Statistics Canada Travel Survey of Residents & International Travel Survey 2011
29. Average Visitor
Spending
$160
per overnight visitor
$ 67
per same day visitor
Source: Ministry of Tourism & Culture Regional Tourism Profile RTO 1, Statistics Canada Travel Survey of Residents & International Travel Survey 2011
30. TREIM
Tourism Region Economic Impact Model
• Direct, Indirect &
Induced impacts
• Gross Domestic
Product
• Labour Income
• Employment
• Tax Impacts
31. What does it measure?
Economic Impact of:
• Visitor Spending
• Operational Expenses
• Investment Expenditures
• Convention Centre
Activity
33. Economic Impact
For 100 Same Day Visitors
Source: Ontario Ministry of Tourism and Culture Tourism Region Economic Impact Model
Haldimand-Norfolk
Oxford
Middlesex
Elgin
Chatham-Kent
Lambton
Essex
Labour Income GDP
34. Economic Impact
For 100 Same Day Visitors RTO 1
Source: Ontario Ministry of Tourism and Culture Tourism Region Economic Impact Model
$3,400 GDP
$2,100 Labour Income
35. Hotel Investment Scenario
$10 Million Investment in RTO 1
Source: Ontario Ministry of Tourism and Culture Tourism Region Economic Impact Model
2,631,577
1,678,037
460,555
325,468
696,520
434,437
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
GDP Labour Income
Induced
Indirect
Direct
3,788,653 2,437,942
36. Jobs in the Tourism Sector
• The largest share of jobs in the tourism sector is in
food and beverage services at 46%
Source : http://discovertourism.ca/en/about_tourism/industry_information
37. EMSI Analyst
Web-based labour market
analysis tool
• Canadian Business Patterns
• Census data
• Employment, payroll & hours
• Labour Force Surveys
• Demographics
• Occupation Projections
Census divisions, census subdivisions, census metropolitan areas
Arrange for access from the Ontario Ministry of Agriculture and Food
40. Tourism Related
Businesses
14,000 tourism related businesses in Ontario’s Southwest
Source: Statistics Canada, Canadian Business Patterns, December 2011
- 1,000 2,000 3,000 4,000 5,000 6,000 7,000
Retail
Other Services
Food & Beverage Services
Recreation & Entertainment
Transportation
Accommodation
Travel Services
41. Other Measurement Tools
• Festival and Events Ontario
Economic Impact Study Grants
• Sport Tourism Economic
Assessment Model
• Motor Coach Estimates
• DIY
43. Common Goals
• More Tourists
• Higher spend per tourist
• Greater local share
44. Higher Spend per Tourist
• Greater length of stay
• Serve and target high
spending tourists
• Tourists need help to spend
money
• Increased availability of
goods & services
45. Greater Local Share
• Create links between food
and accommodation sector
and retailers
• SME support
o Entrepreneurship training
o Customer service
o Tourism education
46. Boost Local Inputs
in the Supply Chain
• Networking events hoteliers, attractions,
retailers, restaurants & producers
• Regular communication
• Encourage established businesses to mentor
start ups
48. Further
information
• Ontario Tourism Research Resources including TREIM
http://www.mtc.gov.on.ca/en/tourism/research.shtml
• Ontario Ministry of Agricuture and Food Analyst Tool
http://www.omaf.gov.on.ca/english/rural/edr/edar/index.html
• Ontario Major Festivals and Events Attraction Research Study, PKF Consulting 2009
• Measuring the Economic Impact of Park and Recreation Services, National Recreation and Park
Association
• Guidelines: Survey Procedures for Tourism Economic Impact assessment of Ungated or Open
Access Events and Festivals
• Guidelines: Survey Procedures for Tourism Economic Impact Assessment of Gated Events and
Festivals
• Sport Tourism Planning Template
www.mtc.gov.on.ca/en/publications/sport_tourism_planning_template.pdf
Photo: http://mikeduran.com/2011/02/should-everyone-get-you/
49. Thank you
Aileen Murray Ec.D. (F)
Mellor Murray Consulting
amurray@mellormurray.ca
519-784-7944
mellormurray