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August 24, 2009


First of all, let me thank our business and community partners who have called or e-mailed to express their thoughts on recent events in our industry. Simply put, these are interesting times!

The most important message today is that Vancouver, Coast & Mountains will deliver its programs and services to its partners on a “business as usual” basis until March 31, 2010. The planning process for the following year will also proceed as usual, and we will be in touch with our partners during September and October.

For further insights into the events and industry response, please see the press release from the Ministry of Tourism, Culture & Arts, an information document from the Council of Tourism Associations and today's press release from the Tourism Industry Association of Canada.. Needless to say, there are many conversations between industry and government, and we will inform you as facts become clear. The next significant event will likely be the release of the provincial budget on Tuesday, September 1st.

If you have questions or concerns please contact Kevan Ridgway at kevan@vcmbc.com, direct at 604-638-6930, or 1-800-667-3306 ext 106.



NEWS RELEASE
For Immediate Release
2009TCA0001-000234
August 17, 2009

Ministry of Tourism, Culture and the Arts

B.C. STRENGTHENS AND ALIGNS TOURISM PROMOTION

VICTORIA – Tourism BC will be brought into the Ministry of Tourism, Culture and the Arts, reducing administrative costs and better co-ordinating all of the Province’s marketing initiatives, Minister Kevin Krueger announced today.

“While Tourism BC has served British Columbia well, in these difficult economic times it is critical that we maximize every tourism dollar for marketing B.C. to the world,” said Krueger. “Consolidating tourism operations in the ministry will allow for co-ordinated marketing campaigns, while ensuring resources are focused on getting the best results for British Columbia’s tourism sector.”

Bringing Tourism BC into the Ministry of Tourism, Culture and the Arts next year will reduce administrative costs and allow these funds to be re-invested into marketing initiatives. The integration of Tourism BC, effective April 1, 2010, will result in a new program under the leadership of the ministry with a renewed focus on marketing the regions of British Columbia.

The minister will be replacing Tourism BC’s board of directors with a new Minister’s Advisory Council, which will continue seeking input and advice on marketing plans from the tourism industry. The council will report directly to the minister.

“We must continue building on the successes B.C. has had over the past few years and remain top-of-mind with travellers,” said Krueger. “These changes will ensure we are maximizing our opportunities to showcase British Columbia, the best place on earth, to the world.”

Created in 1997, Tourism BC was the marketing arm for the Province, with primary offices in Vancouver and Victoria, approximately 146 employees and in-market representation in key markets including Australia, Germany, Japan, United Kingdom, South Korea and Taiwan. These changes will enhance B.C.’s international presence and ensure that the value of B.C.’s tourism potential is maximized at home and abroad.

Tourism generated an estimated $13.8 billion in 2008, providing more than 120,000 direct and 170,000 indirect jobs across the province. The Province of British Columbia has supported the development of a strong infrastructure for the tourism industry since 2001.

For instance, the Province has:

  • Provided $25 million to the Union of B.C. Municipalities for its Community Tourism Program.
  • Provided $12 million in one-time funding to the province's six tourism regions.
  • Invested $8 million toward the construction of six Provincial Gateway Visitor Centres.
  • Provided $5 million over four years to the Aboriginal Tourism Association of B.C. to implement its Aboriginal cultural tourism strategy.

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Contact:
Public Affairs Bureau
Ministry of Tourism, Culture and the Arts
250 356-8177

For more information on government services or to subscribe to the Province’s news feeds using RSS, visit the Province’s website at www.gov.bc.ca.


Council of Tourism Associations
August 21, 2009

TOURISM BC DISSOLUTION:

  • COTA has just sent a letter to Minister Krueger, cc’d to Minister Hansen and Premier Campbell, regarding the HST, dissolution of Tourism BC, and concerns about the overall tourism marketing system. Please see attached.
  • Jim Storie, COTA Chair will be meeting with Minister Krueger on Monday morning to discuss recent events and the draft Terms of Reference for the Minister’s Advisory Council. We will keep you updated on this.
  • COTA has received confirmation that there will be no cuts to “Tourism BC” funding in the interim, and for the time being it is “business as usual” at their offices.

COMMUNITY / REGIONAL MARKETING SYSTEM

  • As many of you know, Finance Minister Colin Hansen officially confirmed today that Additional Hotel Room Tax program (AHRT – 2% additional tax for tourism marketing) will be extended until June 30, 2011 “to provide time for consultation, identification and analysis of options...”
  • I just spoke with the Assistant Deputy Minister of Finance and communicated industry’s concerns regarding HST, Tourism BC, and the overall marketing system. We signaled that COTA would be holding a meeting of members to discuss the marketing system (provincial, regional, community) and asked the Ministry to hold off on further decisions until such a time that we report back. We received confirmation that Finance is intending to consult more fully with industry in the coming months, and that COTA’s efforts to establish some degree of consensus around industry interests and design considerations for the marketing system are very much welcome.
  • The marketing system meeting will be postponed until September 2nd or 3rd, so that we can review the September 1st provincial budget. We have received indications from gov’t that there may be some announcements in the budget that will impact our discussions around the marketing system. COTA will be in the budget lockup.

HARMONIZED SALES TAX (HST)

  • We are continuing our analysis of impacts on specific businesses and sectors.
  • COTA indicated to the Ministry of Finance (staff) and Ministers Krueger, Hansen, and the Premier that we are undertaking this research “in order to gauge the scope and nature of impacts on the tourism industry, so that we will be able to determine what the appropriate range of mitigation options may be for the tourism industry, in the eventuality that government goes ahead and implements the tax against industry’s wishes.”
  • There seems to be a growing recognition within government that the tourism industry would be negatively impacted by the proposed tax. There also appears to be a growing interest in developing measures to mitigate these impacts on the tourism industry by government and by some segments of the industry.
  • We are interested in the perspectives of members regarding COTA’s engagement with government on potential HST mitigation measures for the tourism industry. To date, COTA has only focused on identifying the impacts. Most (not all) sectors that have opposed HST have identified measures government can take to minimize and mitigate impacts of HST on their sectors.
  • Government has stated that eliminating the tax or providing an omnibus exemption for tourism businesses is not on the table.
  • A number of Chambers of Commerce, including the BC Chamber of Commerce, continue to support our messaging around the negative impacts to tourism of the HST, and the need to ensure that negative impacts are minimized and mitigated.

Tourism Industry Association of Canada
116 Lisgar Street, Suite 600
Ottawa, ON K2P 0C2

 

B.C. Government Trips Up on Tourism B.C. Decision;
Tourism Stumbles

For Immediate Release

OTTAWA, August 24, 2009 – The Tourism Industry Association of Canada is shocked and disappointed by the recent announcement by the Government of British Columbia to dissolve the province’s tourism marketing organization, Tourism British Columbia.

“The B.C. government’s unilateral and sudden decision to dissolve Tourism British Columbia demonstrates a total lack of appreciation for the industry-leading work that this organization has done on the province’s behalf,” said TIAC President and CEO Randy Williams. “Tourism has a profound impact on the economy in B.C., and the dismantling of this award-winning tourism marketing organization will set the industry in the province back by a decade.”

TIAC met with B.C.’s Minister of Tourism, Culture and the Arts Kevin Krueger on Friday of last week in Victoria, and expressed to him the industry’s disappointment at the decision. The Minister noted that the decision to pull Tourism B.C. back into government was driven by the need to maximize the potential around the forthcoming Winter Olympics in Vancouver-Whistler.

The Minister indicated that the Government believes that by bringing this marketing function within the Ministry of Tourism, Culture and the Arts, they can increase efficiencies, especially in relation to the promotion of the forthcoming Olympic and Paralympic Games. TIAC responded to this by noting that government operations within the bureaucracy have not traditionally demonstrated increased efficiencies over the arms-length agency model, and that efficiencies could have been gained within the current model if they were found to be lacking.

TIAC also emphasized to the Minister the importance it attaches to a public-private partnership between the marketing organization and the tourism industry in a given province to ensure that the message conveyed to potential visitors is effective, resonant and consistent with the needs of the sector.

Tourism British Columbia was one of the original public-private partnerships in tourism marketing in Canada, and its success over the past decade was due in large part to its ability to undertake long-term strategic approaches to selling the province’s diverse tourism offerings while addressing the needs of the private sector players in tourism. Given changes of government and ministerial shuffles that are inevitable, B.C.’s tourism industry will no longer possess a stable, independent marketing entity that is able to demonstrate leadership and a long-term vision for the sector.

Canada’s tourism sector remains solidly committed to the private-public partnership model of destination marketing. As the revised approach to tourism marketing in British Columbia will continue to be supported by a destination marketing fund levy, TIAC and its members in B.C. will remain vigilant in support of a properly-funded, consultative and strategic approach to ongoing tourism marketing in the province.

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About the Tourism Industry Association of Canada:
The Tourism Industry Association of Canada is the voice of Canadian tourism. Founded in 1930 to encourage the development of tourism in Canada, TIAC serves today as the national private-sector advocate for this $74.9 billion industry, promoting positive measures that help the industry grow and prosper.

For more information, please contact:

Kevin Desjardins
Director, Communications
Tourism Industry Association of Canada
Mobile: 613-240-7225


Your feedback is most welcome on any subject – please e-mail kevan@vcmbc.com.

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