Spending by tourists spikes

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This article was published 17/10/2017 (2375 days ago), so information in it may no longer be current.

The Manitoba’s government’s decision to boost funding for Travel Manitoba is paying big dividends, industry officials said Wednesday.

Last year, the government announced that each year it would give four per cent of provincial tax revenues attributed to tourism back to Travel Manitoba to spend on tourism marketing and promotion initiatives.

Under the new sustainable-funding model, the agency received an additional $3.4 million in funding in 2016, which was its first funding increase in 10 years. All of the new money was spent on new marketing and promotion initiatives in Canada and abroad.

Travel Manitoba chairman Stuart Murray told the agency’s annual general meeting (AGM) Wednesday that, according to the Conference Board of Canada’s latest projections (tourist spending data is typically about two years behind), the increased marketing efforts helped to generate an additional $170 million in tourist spending in the province in 2016. It also helped to generate an extra $38 million in tourism-tax revenues for the provincial government.

So for an investment of $3.4 million, the government is expected to receive $38 million in additional tax revenues, he added.

“That’s a 10-to-1 return on investment. Not too shabby!”

Murray said the good news doesn’t end there.

The Conference Board also estimates tourism expenditures in the province will grow from $1.7 billion in 2016 to $1.78 billion in 2017, for an increase of $80 million.

It also forecasts provincial tourism-tax revenues will climb by $14 million to $310 million which, under the new funding formula, means another increase in provincial funding for Travel Manitoba. That money also will be plowed back into marketing and promoting local tourist attractions.

Murray, and Travel Manitoba president and CEO Colin Ferguson, noted that despite the recent increase in provincial funding, Travel Manitoba still receives less funding than its nine other provincial counterparts. But, at least the gap is now closing.

They also noted that despite being 10th in terms of provincial funding levels, it ranks fifth in terms of return on investment.

“(So) we continue to punch well above our weight class,” Murray added.

He said there are several economic indicators that support the Conference Board’s forecast of a 6.8 per cent increase in tourism expenditures for Manitoba this year. Hotel occupancy rates in the province were up six per cent in the first eight months of 2017, and revenue per available room was up 11.8 per cent.

As well, U.S. vehicle traffic was up 9.6 per cent for the first nine months, he added, and overnight visitations by U.S. travellers was up 2.1 per cent for the first seven months.

“Based on these strong numbers, Travel Manitoba is well on its way to reaching its aggressive goal of… $2 billion in tourism expenditures by 2020,” he added. “And these successes can be tied directly to the sustainable investment received by the province ofManitoba.”

Ferguson told the approximately 175 industry officials attending the AGM the extra provincial funding enabled Travel Manitoba to more aggressively promote the province’s tourist attractions in key international markets like the U.S., the United Kingdom, Germany, and China.

It also enabled it to target some new offshore markets like Australia, as well as new domestic markets like Toronto and Montreal.

It was also able to host more visits to the province by national and international travel writers.

“No longer are we maintaining the status quo, trying to find the right combination of marketing successes with the same, unchanging level of investment (from the province),” he added. “Now, Travel Manitoba has the resources to compete, to innovate… and change the way we operate, each fuelling the opportunity to generate that return on investment industry and government are counting on.”

murray.mcneill@freepress.mb.ca