1. IBGE Second National Meeting of Producers and Users of Social Economical and Territorial Information Rio de Janeiro, Brazil August 21, 2006 Presented by: Scott M. Meis UNWTO Consultant The Tourism Satellite Account: The Canadian Experience Developing and Using the TSA

2. History and rationale Canadian TSA vision Key steps Major Highlights & results Insights, uses and benefits Refinements & results Future developments Outline

3. Canadian TSA: Beginnings French concept of tourism satellite accounts, 1979 Canadian Task Force feasibility study, 1985 Canadian TSA recommendation, 1989 Ottawa Conference TSA guidelines, 1991 WTO/UN Recommendations,1993 Canadian TSA release, 1994 1979 - 1999 History

4. Results CTSA: Initial Prototype Results and Findings: 1988 Tourism consumption $30.3 billion Tourism final demand $22.7 billion Tourism value added, $13.3 billion Share of total GDP - 2.5% Share of service exports 37% Share of total employment 5% - 467 000 persons 1994

5. Rationale : Information Deficiency Problem Task Force Findings : Inadequate Tourism Data Resources (NTFTD, 1986-89) Task Force Findings : Inadequate Tourism Data Resources (NTFTD, 1986-89) Lacked consistency Lacked credibility Lacked view of industry Incomparability Excessive duplication Not summative Availability & access unknown

6. Canadian TSA: User Application Requirements : Task Force Conclusions (NTFTD, 1989) Task Force Conclusions (NTFTD, 1989) New measurement approach required Overcome limitations of statistical invisibility Proposed a tourism-specific satellite account Sufficient data coverage and quality in Canadian statistical system A CTSA appeared feasible!

7. Canadian TSA: User Application Requirements: Decision requirements (NTFTD, 1986) Decision requirements (NTFTD, 1986) Advocacy, planning and public awareness; Marketing; Investment, operations and management; Manpower, education and training.

8. Tourism Satellite Account? A conceptual framework linked to the SNA An account- a summary of transactions-- not a model! A disciplined information system A “tool” for meeting users’ needs CTSA Vision: A New Statistical Instrument

9. Tourism Satellite Account? A “means” of:  Exposing hidden economic phenomena  Imposing consistent classifications and definitions  Aggregating measurements into a summary overview  Showing cumulative significance of all “players” CTSA Vision: A New Statistical Instrument

10. Canadian TSA: Link to I/O Rationale Canadian System of National Accounts Input/Output Tables Tourism Satellite Account Tourism Monetary Values

11. Canadian TSA: Initial Vision Multi-layered Vision Core Account Quantity Data Characteristic Data Analytical Modules

12. Recreation Surveys Canadian Tourism Satellite Account Survey of Household Spending Canadian Travel Survey International Travel Survey Demand Surveys Input Output System Travel Arrangement Services Survey Food and Beverage Survey Accommodation Survey Transportation Surveys Supply Surveys System of National Accounts TSA Information System Vision Gov’t. SupportPlanning & Analysis

13. CTSA: Key Step/Challenge - Organization A Technical Partnership Statistics Canada & Tourism Commission Objective independent statistics agency Industry champion, resources, uses Shared goals and objectives Interdependence Mutual respect & understanding

14. Tourism trips Tourism expenditures Tourism commodities Tourism industries Tourism enterprises Tourism employment Tourism GDP CTSA: Key Step/Challenge--Definitions Definitions

15. WTO and UN Ottawa definitions (1991): “the activities of persons traveling to and staying in places outside their usual environment for no more than one consecutive year for leisure, business and other purposes”. Includes: Day trips (excursions) plus “tourist trips” (1+ nights) Travel to visit friends & relatives; Travel for business; Travel for personal reason (religious & health). Excludes: Commuting to/from work; Study or job relocation; Diplomats or armed forces on assignment. Definition of Tourism Activities CTSA: Key Steps/Challenges-Definitions

16. Tourism Commodities* CTSA: Major Steps/Challenges-Definitions A product or service consumed directly by visitors and produced mostly for tourism, e.g., hotel room nights, tours on steam trains Non-Tourism Commodities A product or service not specific to, or “characteristic” of, tourism, e.g., clothing such as t-shirts, suntan lotion, photo film, groceries Total Tourism Demand: $ 54.1 Billion (2000) *

17. Any industry within the tourism sector that serves visitors directly and would cease to exist or whose level of activity would be substantially reduced without tourism, e.g., hotels. Total = 5 groups, 46 tourism Industries Total Supply: $ 111 Billion (2000) Tourism Industries CTSA: Major Steps/Challenges-Definitions

18. Commodities expenditures VS industry revenues Tourism demand VS supply by commodity Tourism inputs VS outputs by industry Gross outputs VS all inputs Interactive process CTSA: Major Steps/Challenges--Reconciliation Balance supply and demand

19. Demand Surveys Input Output System Supply Surveys System of National Accounts Labour Force Survey Other Information Such as Manufacturing data International Trade data Tax information Business information Such as Profits, capital investment, revenues, expenses Survey of Employment, Payroll and Hours All Other Areas of System of National Accounts Reconciliation Process Canadian Tourism Satellite Account

20. CTSA: Insights View of Major Expenditure Flows 2000 % Change 2000/19 98 Tourism Spending$ 53.7 B+17% Foreign Spending (Exports) $17.8 B+15% Canadian Spending$ 35.3 B+18% Canadian Spending Abroad (Imports) $21.0 B+18% Travel Account Deficit $ 3.1 B0.0

21. CTSA: Insights View of commodity mix $55.5 B (2004) Most $ Go To Transport

22. Tourism Shares of Supply within Sector CTSA: Insights Travel agency services97 Air passenger transport96 Accommodation90 Water transport87 Accommodation meals39 Recreation & Entertainment29 Taxis24 Food and beverage services21 Commodity Class Tourism share ( % )

23. Tourism GDP Shares Within Sector CTSA: Insights Tourism GDP: $ 20.4 Billion (2000) Air transportation = most value added

24. CTSA: Insights

25. CTSA Refinements: National Tourism Indicators Tourism Impact Model Benchmark updates Government Revenues Module Tourism Enterprise Module Financial Performance Indicators Human Resources Module Extensions and Applications

26. CTSA Refinements: Quarterly Indicators 300 Quarterly Indicators Cover major demand flows, supply, external driving factors Quarterly view of status and evolution of tourism Serves to update the TSA results Released 90 days after reference quarter Joint partnership production distribution

27. CTSA: NTI Insights- Short Term Changes Pre 9/11 Total Tourism Spending in Canada by Key Commodities – 2nd Quarter 2001

28. CTSA: Extensions- NTI 15 Year Series

29. CTSA: Extensions- Gov’t Revenues Module $12.40 $8.90 $1.60 FederalProvincialMunicipal TOTAL = $15.4 Billion (1999) * Adjusted = $30 /$100

30. Industry Distribution of Tourism Businesses CTSA: Enterprise Module--Insights Food and beverage service : 57 Recreation and entertainment: 19 Accommodation : 12 Transportation : 6 Travel services : 5 Other ( % )

31. CTSA Achievements : Creation of new agency - CTC Tourism identified as strategic industry Increased funding Matching board structure Non-traditional partnerships Recognition and support

32. CTSA Benefits: Non-traditional Partnerships

33. CTSA: Future Agenda TSA Handbook Update industry/commodity sets Data gaps – second homes Investment & capital Environmental Performance Indicators Future Research Development Options

34. Conclusions Met user requirements Definition of industry Credible industry measures Comparability with total economy New comparability with other industries Still discovering other benefits CONCLUSIONS

35. Thank you for your attention! smeis@rogers.com