1. Ontarios Tourism Industry New Regions New Opportunities Ministry of Tourism and Culture

2. 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. 3 Where Visitors Go

4. 4 Where visitors come from Source: Statistics Canada, TSRC and ITS 2007

5. 5 Tourism Employment

6. 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. 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. 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. 9 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

10. 10 The Discovering Ontario report had recommendations in four key areas: work together Change how government and industry work together – build industry capacity Set standards Set standards for success Invest Invest in private and public tourism product Reach out Reach out to consumers before they get here and once they arrive - re-define marketing roles at provincial and local levels. Ontario Tourism Competitiveness Study (contd)

11. 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. 12 Regions: Southern Ontario

13. 13 Regions: Northern Ontario

14. 14 Establishing an RTO Request for Expressions of Interest (RFEI) – issued on January 26 th and due March 1 st – 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

15. 15 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

16. 16 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. 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. 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. 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: (613)-531-5581 Fax: (613)-531-5585 blair.harris@ontario.ca