NSTA coalition summary presentation
- 1. M Kc Tourism in the New Economy Doubling Tourism Revenues in Nova Scotia
- 2. As Nova Scotia’s leading source of service sector exports, gross business revenues from tourism will reach $4 billion (approximately double the current level). Goal 14: Tourism Expansion.
- 3. $2.02B total revenue 2010 60% Visitors ie. ‘Export’ Markets Market Origin of Visitors 2013 40% Nova Scotians Atlantic Canada 54% Ontario 23% RoC 12% United States 8% Overseas 4% Baseline: M K.c
- 4. 1,747,000,000 Total H/H Income 1,420,000,000 Direct GDP 712,000,000 Total government revenues 69,670 Total Employment $ Source: NSTA Implications of Tourism Revenue Double.
- 5. Tourism is one of the largest and fastest growing economic sectors in the world – 5% growth in 2013 Arrivals and revenue growing at the same pace on average 528 million arrivals in 1996, 1087 million in 2013, 1800 million by 2030 Expected to increase 3.3% per year through 2030 (Advanced economies 2.2%, emerging destinations 4.4%) 80% of world’s arrivals originate from same region World View. M K.cSource UNWTO
- 6. Growing consumption from emerging markets Natural Resources Agriculture and Food Education Technology and Innovation Tourism 1. 2. 3. 4. 5. 6. Dominic Barton Global Managing Director McKinsey and Company “Leading Canada and the World Through the 21st Century Six Opportunities for Canada” M K.c
- 7. The NSTA’s Role Attract first-time visitors from markets of highest return Focus on world class experiences Focus on private sector initiative that can attract first time visitation M K.c
- 8. Industry’s Role Close the sale – pre-trip and during trip Drive repeat visitation by exceeding visitor expectations Invest in product Deliver world class experiences M K.c
- 9. Government’s Role Align policy agenda in support of goal Community economic development Attraction of inward investment Infrastructure investment Thereby informing… M K.c
- 10. Community’s Role Partner with industry to deliver destination development and marketing Visitor servicing M K.c
- 11. Shifting the Focus – NSTA Focus on marketing as the core business Invest in markets of highest return Stop being an operator Reprofile resources against strategic objectives M K.c
- 12. Shifting the Focus – NSTA (cont.) Launch China Strategy Invest in Air Feature only world class experiences in marketing Build Nova Scotia’s tourism confidence M K.c
- 13. Embrace customer advocacy at broad level Deliver high quality experiences/exceed expectations Upsell and build referral Measure success against revenue generated from repeat visitors Prepare to welcome visitors from China Shifting the Focus – Industry M K.c
- 14. Embrace $4B goal at the top Launch ‘all of gov’t approach Align policies and programs in support of goal Explore potential for establishing Nova Scotia as a worldwide centre of excellence for hospitality training Launch China strategy Shifting the Focus – Government M K.c
- 15. Lead the delivery of visitor servicing with focus on driving visitor expenditures Develop strategies to attract inward investment Align community economic development efforts in support doubling revenue goal Drive visitation of resident Nova Scotians Prepare for visitors from China Shifting the Focus – Communities M K.c
- 16. Base Case is $2.02B – 2010 revenue Target is $4B revenue in 2024 Spend per Person – uses 2010 data expressed in 2024 dollars (with inflation assumed at 2%) All revenue growth will come from export markets Revenue from Nova Scotia residents and ‘same day’ remains constant (adjusted for inflation) Exchange rates – status quo Opportunity exists to increase yield/spending per visitor - premium Doubling Revenue - Assumptions M K.c
- 17. Target Visitation 2.7M (from 1.9M in 2013) Market 2013 Volume Target Volume Expenditures Atlantic Canada 54%, 1,011,552 44%, 1,200,000 10% premium Ontario 23%, 432,993 20%, 550,000 20% premium ROC 12%, 219,119 14%, 375,000 20% premium U.S. 8%, 159,403 13%, 360,000 20% premium Overseas 4%, 66,322 7%, 190,000 20% premium China Minimal, included in Overseas 2%, 50,000 20% premium Doing the Math – $4B Revenue M K.c