Contents. How are we doing? What does it mean? Where are we going? How are we going to get there? What s in it for you?

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2 Contents How are we doing? What does it mean? Where are we going? How are we going to get there? What s in it for you? 2

3 2015 Objectives 1% INCREASE NON-RESIDENT OVERNIGHT VISITORS 4% INCREASE ACCOMMODATIONS REVENUES

4 2015 Target Markets CANADA Toronto, ON Montreal, Que Rest of Canada (National buy) UNITED STATES Northern United States OVERSEAS United Kingdom Germany 4

5 2015 Media Strategy Create top-of-mind consideration during awareness phase Optimize campaign during conversion phase Drive qualified traffic to NovaScotia.com 2015 MEDIA STRATEGY Maximize the value of media spend through optimization and persona-based media targeting. AWARENESS Mass media and digital to inspire all personas. CONVERSION Frequency and data-driven media to motivate onsite engagement and action. 5

6 2015 Consumer Campaign 6

7 2015 Consumer Campaign 7

8 2015 Consumer Campaign 8

9 2015 Consumer Campaign 9

10

11 Destination Canada LOOK UP! CAMPAIGN Goal: Drive pre-qualified leads to novascotia.com and aligned content to close the deal Leverage $500,000 in partnership investment at a cost of $150,000, in the NEUS, a key market 11

12 Google WHITE GLOVE SERVICE: Google expert guiding the optimization of our media buy on YouTube, Google Display Network, Gmail and search Best practice insights, access to partner only products/services, industry training, google surveys, mobile website audit, etc. 12

13 Atlantic Canada Tourism Partnership - ACTP ACTP is dedicated to the promotion of Atlantic Canada as a leisure travel destination in key international markets United States Overseas Nova Scotia invests $720,000 annually, with investments by all four Atlantic Provinces Provincial contributions are matched by ACOA 2015 US Media Buy totaled $828,000, call to action novascotia.com NS shares a $1M investment in the UK plus $250K for a new content marketing program in Germany 13

14 Air Canada Joint marketing partnership ($150k each). Co-branded marketing campaign promoting direct flights. Key markets: Boston, Montreal, Toronto, Calgary PRIMARY OBJECTIVE: Visit Nova Scotia this summer with Air Canada direct flights: Air Canada rouge: Toronto Sydney, Calgary Halifax Air Canada: Toronto Halifax, Montreal Halifax, Boston Halifax 14

15 WestJet Market activity to support new Halifax to Glasgow route TV, Out-of-Home and Search Engine Marketing Media: Canada and Scotland Press Visits Travel Trade: Marketing Partnerships and Fams 15

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17 Award Winner It was the most in depth, intriguing, and most importantly, the most impassioned of the entries. It passed the litmus test of what these kind of itineraries should do - it made me want to go. Andrew McCarthy (director, award winning travel writer, actor) 17

18 JoyRide 2015 August qualified media from CAN & US 2 itineraries YTD Results 12 articles/circulation over 32 million ad value approximately $328,000 Twitter: 110 tweets were made during the week, with combined reach of over 50,000 followers Instagram: 325 posts during the week reached over 35,000 followers 18

19 Editorial Program YTD: Circulation 800 million/$16.5 million 123 participants (59 customized itineraries) Partners leverage ratio: $2.08 Avg. media value/participant: $134,939 Avg. reach/participant: 6,138,804 Highlights: Cover/12 page article: Hemispheres (United Airlines) 7 page article: reporter (Porter Airlines) Viral Lunenburg photo: The Planet D Partner with Destination Canada to host Boston Kitchen Party media event Joyride: 8 CAN/US writers with culinary focus WestJet: CAN & SCO media to promote new flight Hosted Scottish TV 19

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21 Hosted Destination Canada s 2015 MegaFam for Canada Specialists 150 travel agents/tour operators - September Germany, UK, France, Australia, China, Japan, South Korea, Mexico, India Explored Nova Scotia culinary, outdoor and cultural experiences through: Excursion tours Parks Canada Showcase Destination Halifax and Taste of Nova Scotia Lunches Destination training Lobster Dinner event at Pier 21 21

22 2015 MegaFam This was possibly my most comfortable fam trip to date and my best in 25 years of travel! I have already two Eastern Canada enquiries on my desk so trust I will do the destination justice! Irene Cox, Nomadic Travel I first visited Nova Scotia on a FAM tour and ended up really loving it here", said Tanja Steiger, a travel trade professional with SK Touristik in Germany. And when I love it, I sell it! 22

23 Industry Development Tourism operator professional development Tourism InnovatioNS Days 5 days across Nova Scotia (352 participants best attendance ever). Conferences & Workshops through TIANS, NSTHRC and Taste of NS National Professional Certification (emerit) Best Practice Missions = 26 participants Edge of the Wedge = 6 participants 23

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25 novascotia.com: Jan 1 Oct 31, 2015 Visits: 3,214,777 (+26%) on Oct 31 we surpassed our 2015 goal of 3 million visits Average session duration: 3:02 minutes (-8%) Increased click through to operator sites (+36%) Travel Guide Orders: 44,423 (+7%) Organic Search: 1,646,916 (+21%) Paid Search: 386,833 (+82%) CTOs generated from SEM: 40,772 (+129%) Consumer Newsletter Subscribers: 102,792 (+40%) 25

26 Social Channels 187,737 fans 20,500 followers 1,957 followers 4,200 followers subscribers 737 members photos 26

27 Most Popular Photo 27

28 Jamie Oliver 73,000 likes 28

29 2015 Non-Resident Overnight Visitation 2,400,000 2,200,000 VISITATION GOAL: +1 % GROWTH 2015 EST. +5 % GROWTH 2,000,000 1,800,000 1,600,000 1,400, ACCOMMODATIONS REVENUE GOAL: +4 % GROWTH 2015 EST. +7 % GROWTH 29

30 Non-Resident Overnight Visitation 10% 8% 6% 4% 2% 0% % 3.2% Canada Nova Scotia 6.6% 2015 YTD Aug. 4.1% 30

31 Non-Resident Overnight Visitation 1,600,000 1,400,000 +7% 1,200,000 1,000, , ,000 +/-0% 400,

32 2015 Performance by Market (full year est.) 2015 VISITORS CHANGE vs % CHANGE Atlantic Canada 1,035, ,600 +3% Quebec 101, , % Ontario 482, ,000 +6% Western Canada 159, /-0% Northeast US 64,800 +5,000 +8% Rest of United States 127,300 +8,000 +7% United Kingdom 27,800 +8, % Germany 9, % Other International 43,500 +1,000 +3% 32

33

34 213, ,312 CAPE BRETON HIGHLANDS NATIONAL PARK 16 % INCREASE IN VISITORS 22 % INCREASE IN REVENUES SUCCESS WITH NEW otentiks: 800 CAMPER NIGHTS YTD Visitation Numbers

35 BURNTCOAT HEAD PARK ATTENDANCE INCREASED 58% in 2015 SHORELINE TOUR PARTICIPATION UP 480%

36 GAEL TOURS Digby, Bay of Fundy PREDATORS, PLANKTON AND PERIWINKLES TOUR 40% INCREASE IN TOURS THIS YEAR 83% OF CUSTOMERS WERE NON-RESIDENT VISITORS

37 INNOVATIVE APPROACH TO ELEVATE AWARENESS OF EMERGING INDUSTRY AND DRIVE VISITATION/SALES 100% INDUSTRY PARTICIPATION WINERIES, DISTILLERIES, CRAFT BREWERIES POSITIVE INDUSTRY FEEDBACK PARTNERSHIP BETWEEN TASTE OF NOVA SCOTIA, TOURISM NOVA SCOTIA, ACOA

38 BIG SPRUCE BREWING Nyanza, Cape Breton GOOD CHEER TRAIL CONTRIBUTED TO A WHOPPING 50% SALES INCREASE JUNE - AUGUST

39 YARMOUTH & ACADIAN SHORES TOURISM ASSOCIATION INVESTING IN COMPELLING CONTENT

40 PICTOU COUNTY CRUISE ASSOCIATION NICHE PORT CRUISE OPPORTUNITY PEARL MIST VISITED 7 TIMES IN 2015 HAIMARK CRUISES INAUGURAL VISIT 2015 RETURNING 2017

41 NEW IN 2015 BLACK LOYALIST HERITAGE CENTRE

42 NEW IN 2015 CANADIAN MUSEUM OF IMMIGRATION AT PIER 21

43 NEW IN 2015 CABOT CLIFFS AND LINKS AT BRUNELLO Golf Digest Cabot Cliffs: Best New Course in 2015 The Second Coming of Cypress Point. Ron Whitten

44

45 Now or Never Goal #14: Tourism Expansion As Nova Scotia s leading source of service sector exports, gross business revenues from tourism will reach $4 billion 45

46 Progress as of 2015 ($ Billions) $4 $4 $3 $3 $2 $2 $2.019 $2.258 $2.325 $2.302 $2.409 $2.472 $1 $1 $ est est. 46

47 Status Quo Will Not Get Us To $4B $4 $4 $3 $3 $2 $2 $1 $1 $

48 $Doubling Revenues Assumptions 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 48

49 Doing the Math - $4B Revenue Target Visitation 2.6M (from 2.0M in 2015) VOLUME % OF VISITOR POPULATION MARKET EXPENDITURES Atlantic Canada 1,035,000 1,035,000 50% 40% 10% premium Quebec 101, ,200 5% 5% 10% premium Ontario 482, ,500 23% 21% 10% premium West 159, ,300 8% 10% 10% premium U.S. 192, ,200 9% 14% 20% premium Overseas 83, ,700 4% 8% 20% premium China Minimal, included in Overseas 50,000 Minimal, included in Overseas 2% 20% premium 49

50 Doing the Math Volume and Revenue $2.47 $2.50 $2.61 $2.68 $2.78 $2.93 $3.12 $3.32 $3.52 $4.01 Tourism Revenues ($ Billions) Non-Resident Visitors (Millions)

51 Crown Corporation: Tourism Nova Scotia We can't keep doing what we have always done. Government needs to get out of the way and let the private sector lead,..the creation of a Crown corporation will position us well to double our tourism revenues from $2 billion to $4 billion annually. Finance and Treasury Board Minister Diana Whalen 10 private sector directors Tourism Nova Scotia CEO reports to Chair Chair of the Board reports to Minister of Business 51

52 Tourism Nova Scotia Mandate 1 Achieve tourism growth and maximize the value of tourism to the economy 2 Develop and implement a long-term strategy for tourism to drive sustainable tourism 3 Communicate and collaborate with communities, private industry and the tourism industry 52

53

54 Leading Canada and the world through the 21 st Century. Six opportunities for Canada 1. Growing consumption from emerging markets 2. Natural Resources 3. Agriculture and Food 4. Education 5. Technology and Innovation 6. Tourism Dominic Barton Global Managing Director, McKinsey and Company 54

55 Leading Canada and the world through the 21 st Century. Six opportunities for Canada by 2015, there will be an estimated 110 million outbound travelers from China with more than half looking to visit natural landscapes Dominic Barton Global Managing Director, McKinsey and Company 55

56 China Market: Growth Opportunity China emerged as Canada s 2nd largest overseas inbound market in 2014 (in terms of receipts) 454,000 Chinese travelers visited Canada in 2014 generating $1 billion in tourist receipts and supporting about 7,200 jobs. MARKET Forecast 2016 Forecast Arrivals (,000s) Y/Y % + 29% + 12% - 20% + 15% Avg. spend per trip $2,299 $2,425 $2,473 56

57 Disruptive Technology 57

58 A NATURAL COMPETITIVE ADVANTAGE NOVA SCOTIA IS CANADA S FOREMOST SEACOAST VACATION DESTINATION, OFFERING AN AUTHENTIC EXPERIENCE THAT UNIQUELY COMBINES SPECTACULAR SCENERY WITH RICH MARITIME CULTURE AND LIFESTYLE 58

59 Urban and Rural Benefits TOURISM GDP + LARGER THAN MINING, FORESTRY, FISHING AND AGRICULTURE SECTORS COMBINED APPROX. 1 IN 20 NOVA SCOTIANS EMPLOYED IN TOURISM INDUSTRY 59

60 INWARD INVESTMENT AUTHENTIC SEACOAST 25 EMPLOYEES 60

61

62 Guiding Documents A Tourism Strategy for Nova Scotia (5 Year Tourism Strategy) Nova Scotia Tourism Agency, 2013 One Nova Scotia Now or Never Report Nova Scotia Commission on Building Our New Economy, 2014 Tourism in the New Economy, Doubling Tourism Revenues in Nova Scotia McKenzie Strategies, 2014 Repositioning Tourism in the Nova Scotia Economy Tourism Industry Association of Nova Scotia, 2015 We Choose Now, A Playbook for Nova Scotians - ONE Nova Scotia Coalition 2015 Private Sector Growth Strategy Department of Business, 2015 (in development) 62

63 Tourism Nova Scotia 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 63

64 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 64

65 Government s Role Thereby informing Align policy agenda in support of goal Community economic development Attraction of inward investment Infrastructure development 65

66 Community s Role Partner with industry to deliver destination development and marketing Visitor servicing 66

67 Our Vision Double tourism revenues, from $2 Billion to $4 Billion by

68 Our Mission As the steward of Nova Scotia s tourism brand and chief marketer, Tourism Nova Scotia will undertake innovative strategic marketing and sector development activities to attract more first time visitors and thereby grow Nova Scotia's tourism economy. 68

69 Tourism NS $4B Strategies 1 Invest in markets of highest return. 3 Attract first-time visitors to Nova Scotia. 2 Focus on world class experiences. 4 Build Nova Scotia s Tourism confidence. 69

70 Invest in Markets of Highest Return Markets: Market is defined as THE CUSTOMER GEOGRAPHY (where they live) DEMOGRAPHICS (age, party type, HH income) PSYCHOGRAPHICS (values, motivations, aspirations) HIGHEST RETURN: Those who will spend the most money while visiting (staying longer not necessarily a requirement) 70

71 Invest in Markets of Highest Return Focus on priority Explorer Quotient segments Pay attention to niche marketing opportunities Focus on global competitiveness Importance of Air 71

72 Explorer Quotient Tourism Nova Scotia has licensed Destination Canada s segmentation approach, Explorer Quotient Segments the market by travel values Moves away from more traditional demographic/activities-based segmentation IMMEDIATE FOCUS (2) MID-TERM FOCUS Authentic Experiencers Cultural Explorers Free Spirits 72

73 Importance of Air Worldwide growth in tourism is being fueled by growth in air travel this trend will continue Increasingly, consumers are seeking direct connectivity Air travelers spend more per person per day than other modes 73

74 Importance of Air Challenges with air policy in Canada HSIA gives NS competitive advantage within Atlantic Canada HSIA is promoting the Air Route Development Fund seeking policy and funding support 74

75 Attract First-time Visitors Why first-time visitors? While we care about all visitors, our marketing messages and execution will focus on converting those who haven t been here before. This approach is about spending marketing dollars to have maximum impact. First time visitors are most likely to be directly influenced by marketing. If we convert a first-timer, chances are they will be back again. 75

76 Attract First-time Visitors 76

77 Origin and Mode of Travel Are Important 2015 VISITORS CHANGE vs CHANGE vs 2014 ROAD CHANGE vs AIR Atlantic Canada 1,035, , ,900-2,300 Quebec 101, , ,800-1,000 Ontario 482, , ,300-4,800 Western Canada 159, ,000-4,200 Northeast US 64,800 +4,600 +5, Rest of United States 127,300 +8,100 +6,600 +1,500 United Kingdom 27,800 +7, ,700 Germany 9, Other International 43,500 +1, ,200 TOTAL 2,053, , ,400-2,100 77

78 Origin and Mode of Travel Are Important WHAT THEY SPEND ON THEIR NOVA SCOTIA VISIT ROAD SPEND AIR SPEND ROAD VS. AIR Atlantic Canada $309 $700 ($391) Quebec $518 $944 ($426) Ontario $529 $884 ($355) Western Canada $929 $1,465 ($536) Northeast US $520 $982 ($462) Rest of United States $670 $1,323 ($653) International $670 $1,827 ($1,157) 78

79 Meetings & Conventions 1 Halifax Convention Centre is focused on bringing incremental business to NS 2 Increased Opportunities for pre and post 3 Opportunities to leverage Canada s Global Market Action Plan and Nova Scotia priority sectors 79

80 Events Canadian Country Music Week Record setting event (Most tickets ever sold for awards show on 1 st day of sales) 1,000+ out of province visitors 42% first-time visitors to NS CBC & CMT national broadcast to 1 million+ viewers 80

81 Niche Markets Cruise Leverage the Atlantic Canada Cruise Association Partnership marketing: niche cruise, Halifax turn-around, port-of-call market growth Encourage passengers to return for landbased vacations Promote Nova Scotia as a cruise destination through digital marketing, media relations and travel trade sales activity 81

82 Focus on World Class Experiences World Class Experiences: Build the cachet of Nova Scotia as a vacation destination visitors want to share and talk about the experience Motivate travel to Nova Scotia Are underpinned by Nova Scotia s seacoast Align with Destination Canada s signature experience criteria Leverage Explorer Quotient as a market segmentation tool Dining on the Ocean Floor: a world class experience that motivates Cultural Explorers 82

83 Build Nova Scotia s Tourism Confidence Collaborate with industry to: Educate Nova Scotians about our approach to growing tourism and why tourism growth matters Help Nova Scotians get behind the $4B goal Help Nova Scotians understand who is coming and why they are coming Help Nova Scotians see that our destination/tourism brand is special and we can all play a role in delivering on visitor expectations 83

84

85 Strategic Approach Partnership opportunities will be offered through both marketing and sector development, and will focus on the $4B goal and strategies Partnership programs will be announced end of December, 2015 no core funding programs Vast majority of budget (80%+) will support marketing and development initiatives, not salaries/overhead 85

86 New for 2016 Renewed corporate communications focus Increased focus on leveraging investments Undertake Brand review Launch China market strategy Introduction of Explorer Quotient segments; increased investment in market research Evolve content strategy: Distribute Nova Scotia content where the consumers are Establish KPIs, e.g., Marketing KPI s that reflect a direct correlation to investment and conversion Work with industry on the bumpy bits 86

87 In Progress Organizational changes 2016 marketing plan Partnership programs Stakeholder outreach CEO search 87

88 Measurement Tourism Nova Scotia s success will be measured against our strategies Invest in markets of highest return Attract first-time visitors to Nova Scotia Focus on world class experiences Build Nova Scotia s Tourism confidence Tourism Nova Scotia will also measure and report on our collective industry progress against the $4B goal 88

89 What s In It for Me? Roles are clear Strategy focuses on sector profitability Opportunities to partner Investing deeply in market research; available to industry Engagement at the planning stage Transparency in reporting 89

90 Tourismns.ca 90

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