tourism calgary 2015 2017 strategic plan
contents 2 6 7 8 13 14 16 18 20 22 24 26 28 our ambition and our focus what we do how we do it situational analysis our strategy strategic objective: work together as a destination strategic objective: generate incremental visitation and spend strategic objective: build organizational excellence strategic objective: energize the calgary brand industry alignment corporate scorecard statement of operations board of directors
2 Tourism Calgary our ambition and our focus Calgary continues to grow quickly and is one of the pre-eminent urban centres in Canada. We are a global gateway with a fast growing airport, we have a booming business community, we are an Ultimate Sports City, we have the Greatest Outdoor Show on Earth, we have breathtaking places to visit outside the city and we have a vibrant urban scene. This is an amazing array of tourism strengths and we stand with any North American city as an exciting and compelling tourism destination. But there is more that we can do. In 2014, Tourism Calgary launched a new strategic direction. After a year of actively testing its early success, relevance and potential, we are confident in its direction. With minor adjustments to account for a sustained funding model, the direction of our organization will remain focused on achieving our goals and ambition. Our ambition is to be the most successful urban tourism destination in Canada. To get there, we will be guided by five areas of focus:
2015 2017 Strategic Plan 3 Every decision we make is evaluated by its return-on-investment. For many investments, measurement is clear and we can identify the revenue generated. In other areas, results are less easily measured. That does not diminish the discipline we use, nor will we cease to make every investment as measurable as possible. disciplined planning and a focus on ROI Our goal as an organization to generate $2.3 billion in tourism spending by 2020 is highlighted in this strategic plan. Our overall discipline and ROI focus makes this goal achievable. Fundamentally, marketing the destination has two components: inspiring people to want to come to Calgary and converting their interest to an actual trip. In longhaul markets, we have to start with inspiration or they won t come. In short-haul markets, we can invest more heavily in conversion because the interest already exists. inspire and convert This focus applies just as strongly to our Sports and Major Event efforts. To create a winning bid, it is essential that we both inspire and engage the key stakeholders. As much as a destination marketing organization needs to focus on the opportunities in front of them to drive revenue, it is equally important that we have a long-term vision for the destination. Do we have the visitor experiences we need? Are we working with the right stakeholders? Is the industry getting the support it needs? How competitive will our destination be in 3, 5 or 10 years? destination vision Initial work to build a vision has begun and these are some of the essential questions we will work with our industry and our partners to answer. alignment Alignment, collaboration and integration are essential to successful tourism marketing. By aligning with the Canadian Tourism Commission and Travel Alberta, we benefit from their investments and their brands to inspire visitors. By aligning with our industry we increase conversion, contributing to the success of their marketing efforts. By aligning with our partners in the community, including The City of Calgary, Calgary Economic Development, Meetings and Conventions Calgary, and the Calgary Hotel Association, we will build a better city and bring a broader range of visitors to Calgary. Our destination brand drives everything. It is how we inspire and convert visitors, it shapes our destination vision, it determines what it is that we want to measure and it guides how we align. destination brand Research shows that destinations without a clear brand suffer from a lack of differentiation and struggle to increase visitation. By making the brand central to our work, we will ensure results.
4 Tourism Calgary These five areas of focus will guide our work to be the most successful urban tourism destination in Canada. We will operationalize this ambition through our strategy that is outlined in this document. It details the plans and measures we have in place to continue to drive towards $2.3 billion in tourism spending in Calgary by 2020. We will continue to report back to the industry on quarterly and annual bases, to demonstrate our commitment, transparency and accountability. Rod McKay Chair, Board of Directors Cindy Ady Interim CEO
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6 Tourism Calgary what we do mandate Increase the economic impact of the tourism economy to Calgary. mission Inspire more people to visit Calgary for memorable experiences. business objective To work with the community to grow tourism revenues to $2.3 billion by 2020. We will lead with a bold Calgary brand and leverage the tourism marketing investments of the entire industry.
2015 2017 Strategic Plan 7 how we do it Our organizational strategies, priorities and actions will deliver significant and sustained growth in tourism revenue. To achieve success, we must work collaboratively with our industry through all of our campaigns and initiatives. The strategic framework was initiated in 2014, and after evaluating its early success, we re confident in the direction. With minor amendments to better reflect the industry and organization, the key strategic initiatives and goal for Tourism Calgary are focused on: 1 2 3 4 Generating incremental visitation and spend Energizing the Calgary brand Working together as a destination Building organizational excellence
8 Tourism Calgary situational analysis Every organization, in every industry must be prepared to respond to opportunities and potential risks to their significance, sustainability, profitability and growth. As Tourism Calgary completes its 2015-17 strategic plan, the following factors are being considered and monitored for appropriate action. Economic climate The Canadian economy is forecast to grow by 2.7 per cent in 2015. RBC forecasts Alberta s real GDP growth for 2015 at 3.5 per cent. Investment in energy and strong population growth will continue to drive Alberta s economic expansion. Despite slower population gains in 2015 that will result in a modest cooling of GDP growth in Alberta, annual economic growth in the province will continue to lead the country. There has been steady improvement in the U.S. economy. Improving labour market conditions and wealth gains from rising home and equity prices have increased consumer confidence and spending. According to TD Economics, U.S. GDP growth is forecast at 3 per cent for 2015. However, the recent rapid rise of the U.S. dollar has raised questions about whether a stronger currency will hurt the U.S. recovery. Economic conditions in the U.K. remain positive, with consumer spending rising as a result of strong employment growth and a reduction in household savings. Economic growth is expected to moderate in 2015 at 2.5 per cent for the U.K., with the Eurozone s growth forecast at just 1.5 per cent in 2015. In Asia, the Chinese government continues to implement targeted measures to support its growth target. China s economic growth is forecast at 7 per cent in 2015, while Japan will realize only 1.7 per cent growth. Exchange rate As the U.S. economy strengthens, the U.S. currency will continue to appreciate. CIBC predicts the Canadian dollar will fall below 85 cents U.S. by the third quarter of 2015 before beginning a slow bounce-back. A weaker Canadian dollar is good for exports, and good for U.S. travel into Canada as it reduces the cost of travel to Canada for American visitors. The weak dollar may also encourage Canadian travellers to stay at home in the coming years.
2015 2017 Strategic Plan 9 Global tourism growth International tourist arrivals grew by 4.6 per cent in the first half of 2014, according to the World Tourism Organization (UNWTO) Tourism Barometer. International arrivals are expected to grow by four per cent to 4.5 per cent for the year 2014, above UNWTO s long-term forecast of 3.8 per cent per year for the period of 2010 to 2020. Worldwide, travel and tourism forecasts over the next 10 years look extremely favourable with predicted growth rates of four percent annually, according to the World Travel & Tourism Council. Domestic tourism growth Calgary was initally forecast to lead the way in visitor and spending growth in 2014 among the major metropolitan markets. The Conference Board of Canada s Fall 2014 Travel Market Outlook now forecasts 3.5 per cent growth in overnight visits for Calgary (second to Vancouver with 4.1 per cent growth in overnight visits) and 7.2 per cent growth in overnight spending for Calgary for 2014 (higher than the original forecast, 0.1 lower than Vancouver). Overnight visitor spending growth is forecast to ease slightly in 2015-2017 (from 6.1% to 5.4%, approaching the national average in 2017) with overnight visitor growth to remain around 3.4 per cent each year. See Visitor Spending Growth Forecast graph below Air access Having recently opened Canada s longest parallel runway which will satisfy growth demands for the next 20 to 30 years, the Calgary International Airport will open a newly expanded terminal and hotel in 2015, essentially doubling the size of the existing facility. The Calgary Airport Authority s $2 billion expansion program will make Calgary an attractive option for long-haul carrier expansion. In 2013, YYC welcomed a record 14.3 million passengers, surpassing Montreal as Canada s third largest airport. Sport tourism Sport tourism remains one of the strongest segments of the tourism industry in Canada, having surpassed $5 billion in spending in 2012, according to the Travel Survey of Residents of Canada and the International Travel Survey. In 2012, visitor expenditures associated with sport tourism was $5.2 billion, up 5.3 per cent from 2011. Leading the spending is the domestic market, accounting for 84 per cent of all spending and 6.7 per cent growth over 2011. Sport tourism is a powerful tool for increasing economic activity, enhancing quality of life and promoting our community s image nationally and internationally. Visitor Spending Growth Forecast (% change from previous year) Canada Alberta Calgary 8% 7.2 % growth from prior year 6% 4% 2% 6.1 5.6 5.4 0 2014 f 2015 f 2016 f 2017 f Source: The Conference Board of Canada Travel Markets Outlook, Fall 2014
10 Tourism Calgary International tourism growth The Eurozone finally exited recession in the second quarter of 2013, signaling the end of the longest contraction in 40 years. European outbound travel is forecasted to grow between three to four per cent for 2014. The U.K. remains the largest source of visitation and revenue of all our overseas markets followed by Germany, and represent markets of growth for Alberta and Calgary. In the Asian markets, China and Japan are a dichotomy. China continues to be a driving force in the outbound market. Trips by Chinese travellers increased 26 per cent overall for 2013, and show no signs of slowing down for 2014. Japan in contrast declined two per cent overall. With the Yen finally in what some economists call a sweet spot, the currency may have stopped declining due to sweeping economic reforms introduced last year by Prime Minister Shinzo Abe. (Source: Travel Alberta). Tourism labour shortage A study by the Canadian Tourism Human Resource Council predicts a labour shortage will continue to progressively worsen and could amount to a shortage of 228,000 jobs across the country by 2030, with the food and beverage industry being hit hardest. Alberta is expected to generate the highest potential rate of growth in labour demand; between 2010 and 2030 the demand for tourism workers in Alberta could rise from nearly 164,000 full-year jobs to 239,000 full-year jobs, a potential increase of 46 per cent. Meanwhile, Calgary is expected to generate the highest potential rate of growth in tourism labour demand. According to The Conference Board of Canada, between 2010 and 2030, demand for tourism workers in Calgary could rise from just over 61,000 to nearly 92,000 full-time jobs, a potential increase of 50 per cent. Sales tax As the only province without a provincial sales tax, Alberta remains an attractive shopping destination for regional travellers and provides even better value for American visitors. Hotel occupancy and capacity Several hotels are under construction and more have been announced for the Calgary market. If all projections are realized, approximately 2,500 additional rooms will be available by the end of 2017, an increase in room supply of 20 per cent. As hotels in Calgary hit record capacity levels in recent years, the potential now exists for a period of instability as the market absorbs new product. Brand USA The United States government introduced Brand USA in 2012 as part of the Travel Promotion Act. Its campaign, Discover America targets Canada, and many of the international markets Tourism Calgary, Travel Alberta and the Canadian Tourism Commission target. Brand USA is clear in its strategy: it wants Canadian domestic travellers to head south for a holiday. However, the lower Canadian dollar may have Canadians thinking twice about a vacation in the U.S. Industry funding The Canadian Tourism Commission s (CTC) budget has been consistently reduced over the years from more than $100 million to $57.8 million in 2014, representing a decrease of 41.5 per cent in just over a decade. Travel Alberta meanwhile is not immune to the potential for funding reduction. With changes in the provincial government, any changes to Travel Alberta s funding would certainly impact partnerships with Tourism Calgary. Tourism Calgary is pleased to have stability with its major funder as the organization approaches this strategic planning cycle. In our strategic marketing plans for 2015 to 2017, we will maintain a nimble and flexible approach to ensure that we are prepared to respond to any changes in available funding. Transportation and accessibility Calgary s connectivity is improving thanks to new transit modes, with new LRT lines and an express bus to the airport. Motor coach service from the airport to Banff and Lake Louise is well utilized and efficient. A private hop-on-hop-off bus service was introduced in Calgary in 2014. The affordable service moves travellers throughout the city, with access points at many attractions and notable venues. Calgary has adequate taxi supply during regular periods and excellent service from the airport, and increased the number of licenses in 2014. However, during key events and at certain times of the day and week, there are taxi shortages. Not to be overlooked, Car2Go is making significant inroads in the Calgary market, and should be considered as a factor in discussions about in-market transportation and accessibility. Beginning in 2015, guided day-trips will launch from Calgary to Drumheller and the Badlands. These daily tours will offer another opportunity to showcase the benefits of Calgary as a hub to a variety of experiences.
2015 2017 Strategic Plan 11 Parking in downtown Calgary is more expensive than anywhere else in Canada, an important factor when considering that 84 per cent of visitors who came to Calgary in 2012 used a vehicle (car, truck, camper or RV) as a mode of transportation. New product development A variety of new development projects will build Calgary s tourism product base in the next few years. It is estimated there will be an additional 2,500 hotel rooms in Calgary by the end of 2017, a 20 per cent increase in room supply; Two major infrastructure projects are planned at Stampede Park (Youth Campus and ENMAX Park); A new iconic National Music Centre will open in the developing East Village in 2016; The Calgary Zoo continues to move forward with several aspects of its 20-year master plan, including the highly anticipated introduction of the Panda exhibit; Trade-ready product, including Calgary Food Tours, the Calgary Flames Tourism Package, and the Round the Block hop-on-hop-off bus; Fort Calgary, now in phase 2 of its redevelopment plans. Dining, arts & culture Calgary s growing dining, arts and culture scenes are key motivators for many travellers. Tourism Calgary and Canadian Tourism Commission research shows that more than 30 per cent of regional travellers and 40 per cent of long-haul travellers cite these experiences as what they are interested in when visiting Calgary. Overall perceptions Tourism Calgary research amongst regional travellers indicates that they come to Calgary to go to events, participate in activities, culture and nature, to shop and to visit friends and family. Regional travellers see Calgary as a place to go, as opposed to a reason to get away. This same research revealed some demographic differences with respect to the benefits that Calgary delivers to regional travellers: For younger travellers (24-34 years), Calgary delivers fun/ social aspects, provides an escape, cultural experiences, outdoor activities, and is familiar/comfortable. These younger travellers are very receptive to Calgary and see it as an exciting city to visit. For older travellers (35-54 years), the key benefits Calgary delivers include connecting with family/friends, cultural experiences (events and shows not available at home) and a change of pace or break from monotony. Older travellers need to be reminded of the memorable moments they ve had during past visits to Calgary, and shown that Calgary has more to offer than they realize it s not the same old Calgary. Information seeking trends Print resources are still heavily relied on for leisure travel planning. In 2014, 49.1 per cent of American leisure travellers said they used print resources (DMO visitor guides, travel magazines, newspaper travel section, guidebooks and direct mail pieces) to plan their leisure travel, while 40.6 per cent said they used a mobile phone or PDA to access travel information. 50% 40% 30% 20% Jan 2011 Print and Mobile (% leisure travellers) Any print Mobile phone July 2011 Jan 2012 July 2012 Jan 2013 July 2013 Jan 2014 Source: The State of American Traveller, Destination Analysts Inc., July 2014 July 2014 While there are generational differences for some sources of travel planning information, destination marketing organization websites and visitor guides are used by an equal number of travellers in each generation. Information Sources to Plan Leisure Travel Millennials Generation X Baby Boomers Used mobile phone to plan travel 25.5 Downloaded a travel-related app 11.0 8.9 4.2 Used a DMO website 34.7 31.1 30.1 53.2 Ordered a printed visitor guide from a DMO 19.2 18.4 22.0 Source: The State of American Traveller, Destination Analysts Inc., July 2014 71.6
12 Tourism Calgary Summary of implications Tourism indicators remain strong, and Calgary has the opportunity to experience growth over the next three years. By focusing on our strategic priorities, and ensuring collaboration with an eye to the goal of achieving $2.3 billion in visitor spending by 2020, we will succeed. However, some flexibility in the strategy must be expected, as new opportunities arise and uncontrollable situations are presented. We will remain nimble and aware of our industry s landscape, so that we re able to respond appropriately to situations as required. As in previous years, ongoing product, sports and event development, improving perceptions of our destination and the support of a strong brand give Calgary a strong platform for marketing. Continued integration of all internal Tourism Calgary departments, including marketing, sales and sports and industry relations will ensure that we continue to capitalize on these opportunities.
2015 2017 Strategic Plan 13 our strategy Leverage in-market travellers Develop research-based insights Grow the Calgary brand through promotion of the destination Develop brand-aligned experiences Grow visitation from long-haul processes markets Improve internal Attract, market and activate culture experiences, brand-aligned events & festivals Nurture a Generate incremental Grow tourism revenue to $2.3 billion by 2020 visitation and spend Build organizational excellence Drive organizational performance using measurement Strengthen the Tourism Calgary team Energize the Calgary brand Advocate with and for the tourism industry Work together as a destination Provide marketing and knowledge leadership Build brand awareness in key markets Increase the Engage industry skill and expertise in meaningful of tourism industry advocates communication Create brand
14 Tourism Calgary strategic objective: work together as a destination Alignment, collaboration and integration are essential to our success. By aligning with industry stakeholders and partners including Travel Alberta and the Canadian Tourism Commission, we will leverage the investments of the tourism community to develop more effective and efficient programs and to improve the overall knowledge, skills and expertise of the industry. Equally important is the work we do with our civic partners. Collaboration between The City of Calgary, the Calgary Hotel Association, Calgary Economic Development, Meetings & Conventions Calgary, local attractions and key local stakeholders will lead to a strong and aligned destination that is prepared to welcome the world.
2015 2017 Strategic Plan 15 Advocate with and for the tourism industry There are a vast number of opportunities for advocacy within the tourism industry; at the local, provincial and national levels, Tourism Calgary will listen, research, consider, support, and at times, lead appropriate advocacy efforts that support our industry and partners. Advocacy also includes ensuring there is a shared long-term vision for our destination. Initial work to build a vision has begun, and will continue with our industry partners. Provide marketing and knowledge leadership for the tourism industry Tourism Calgary will continue to provide leadership to the industry through leveraging effective partnership marketing opportunities and campaigns, communicating relevant information in timely and professional ways, and sharing useful research insights. Increase the skill and expertise of the tourism industry Tourism Calgary is uniquely positioned to identify emerging trends, recognize gaps in destination marketing assets and provide access to provincial, national and international research and industry knowledge. Through thoughtful and cost-effective industry learning sessions, we will address the most pressing needs of the destination and our industry by educating and supporting the skills and expertise of our tourism industry community. Engage industry in meaningful communication To be effective, communication must be meaningful to those receiving the message. It must also be shared, rather than pushed one-way. Tourism Calgary will be a leader in how it communicates with partners, ensuring we are engaging in meaningful shared dialogue for the benefit and growth of our industry.
16 Tourism Calgary strategic objective: generate incremental visitation and spend The primary objective of a destination marketing organization is to generate significant and sustainable increases in tourism revenue across the industry at hotels, attractions, restaurants and sports and events. All of our efforts will be balanced between shorter-term initiatives to address weekend and shoulder season visitation and longer-term initiatives to build awareness and interest in visiting Calgary. Grow visitation from targeted long-haul markets In long-haul markets, we must begin by building awareness to inspire visitation. This cannot be done alone. Long-haul market development is only effective when done with aligned with the Canadian Tourism Commission and Travel Alberta. We will continue to align with our partners to maximize investments in international markets, focus on building joint marketing agreements with travel trade and support hosted tour operator visits. The return on our strategic endeavors into targeted long-haul markets won t be realized immediately, rather in the mid-term (three to five year and beyond) timeframe as we move these travellers through the path to purchase. Attract, market and activate events, experiences and festivals Creating an urgency to visit now is critical to the success of a destination marketing organization. To support this, attracting, marketing and activating events, festivals and signature experiences play a key role in Tourism Calgary s strategy. Sport and cultural events are an important component of Tourism Calgary s efforts to bring more people to Calgary, as well as to create memorable experiences for visitors. The Calgary Sport Tourism Authority (CSTA), operated by Tourism Calgary, has developed a sport and cultural event strategy focused on winning bids, whether small or large, regional, national or international. An essential part of the tourism economy, sports and cultural events provide wide-ranging benefits and deliver a triplebottom line: Increasing tourism expenditures and delivering memorable experiences; Contributing to Calgary s volunteer spirit and quality of life for residents; Building capacity to host major events and encouraging the growth of sport and cultural communities at the grassroots level. Cities around the world are recognizing all three benefits and are allocating significant resources to the pursuit of major events. As a result, attracting and hosting sporting events has become an increasingly sophisticated, strategic and competitive pursuit. The successful acquisition of these events requires a collaborative strategy, a disciplined decision-making model and a highly targeted approach. Successfully leveraging the full potential of these events requires the integration of marketing and visitor services into the collaborative major events strategy.
2015 2017 Strategic Plan 17 Leverage in-market travellers Visitor services remain a critical component of maximizing visitor spend. According to an InterVISTAS Consulting report commissioned by the Government of Alberta in July 2013, visitor information services provide an average 15 per cent increase in length of stay and an additional $400 in expenditure per trip. Visitor information services maximize the in-destination experience and provide human touch-points to energize the brand. This is particularly valuable in our work to leverage business and visiting friends and relatives travel, to increase spending. Develop research-based insights Research, and the insights it brings, will be at the core of all of our activities. Research confirms the markets of greatest potential, how to best reach potential travellers, how they prefer to travel and what inspires them to visit a destination. We will also work with our industry partners at Travel Alberta and the Canadian Tourism Commission to maximize the availability and timeliness of relevant research. Accurate, consistent and current data will help us achieve the best possible return on investments. Visitor services are focused on travellers through the Calgary International Airport and Calgary Tower Visitor Information Centres, as well as at targeted major events. Leveraging the corporate and event travellers to do more while they are in Calgary is critical to our success.
18 Tourism Calgary strategic objective: build organizational excellence Our stakeholders reasonably and appropriately expect Tourism Calgary to operate with the discipline and focus of a high-performing, private sector marketing organization. Improve internal processes The team at Tourism Calgary must work efficiently and collaboratively to ensure that we re able to meet our strategic objectives. We will maximize inter-departmental opportunities and efficiencies to fully leverage events and react nimbly to changing market conditions. This includes strengthening our overall lines of communication throughout the organization. Nurture a brand-aligned culture The culture internal to Tourism Calgary is as important as the external, public-facing culture. The two must be aligned, and the team at Tourism Calgary must understand and exemplify the four key attributes of our brand; authentic, approachable, vibrant and dynamic, to ensure the essence of our brand is felt in every activity. Drive organizational performance using measurement Using our corporate and brand scorecards, we will track our progress in specific, measurable, achievable, relevant and time-specific ways. Our scorecards are monitored and updated on quarterly and annual bases to ensure we re on track to meet our goals and objectives, making achieving the best return-on-investment possible. Strengthen the Tourism Calgary team Through training, support and recognition, we will continue to build on the strength of our team, to increase skills, engagement, alignment and collaboration to more effectively deliver on our strategic objectives.
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20 Tourism Calgary strategic objective: energize the calgary brand The tourism industry is experiencing rapid change. Global competition is on the rise and Calgary is competing with destinations from all around the world. These changes have made effective destination branding more essential than ever. The Calgary brand leverages the city s differentiating qualities and uniqueness to create an advantage over our competition. A strong, differentiated brand is the foundation of Tourism Calgary s activities. Develop brand-aligned experiences The Calgary brand is comprised of a variety of stakeholders, attributes and physical assets that contribute to the overall impression of the destination. Each visitor experience has multiple touch-points, interactions and opportunities for the tourism industry to deliver on the Calgary brand promise. Therefore, building a destination brand isn t the work of one organization, rather it s a collaboration of many stakeholders. Tourism Calgary works closely with its partners to ensure alignment and collaboration to build a holistic destination brand. Build brand awareness in key markets Brand awareness is the first stage of any visitor s path to purchase. It is Tourism Calgary s role to shape positive perceptions of our destination and create an emotional connection with potential visitors. Brand awareness will be the basis of differentiating Calgary from the competition and highlight the unique attributes that make it a remarkable destination. Create brand advocates Calgary brand advocates are a critical source of brand equity for the destination. Calgarians, past travellers, travel experts and media can, and should all be advocates of our brand. Those advocates are critical to any destination as they account for repeat business and are the number one source of future recommendations. The opinions are authentic and their own playing a very important role in the shaping of a brand image. Given the significance advocacy plays along the traveller s path to purchase, Tourism Calgary is creating brand advocates to play the role of spokesperson for the destination. Each of Tourism Calgary s target markets are unique and hold a different level of awareness and perception of Calgary as a destination. These markets are regularly monitored and analyzed to determine the strength of the Calgary brand and to guide Tourism Calgary s activities in each market. Tourism Calgary is committed to bringing the Calgary brand to life and inspiring travellers to visit.
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22 Tourism Calgary industry alignment Alignment is essential to successful tourism marketing. By aligning with the Canadian Tourism Commission and Travel Alberta, we benefit from their investments and their brands to inspire travellers to visit Calgary. By aligning with our key industry partners, we increase conversion and contribute to the success of their marketing efforts. By aligning with our local partners, including Calgary Economic Development, the Calgary Hotel Association, Meetings & Conventions Calgary, The City of Calgary and others, we build a more compelling product and bring a broader range of visitors to our city.
2015 2017 Strategic Plan 23 Industry alignment along the path to purchase An aligned tourism industry provides the most effective deployment of marketing resources. The focus of this alignment is the decision path that visitors take as they decide where to go. The path to purchase represents the nine steps a potential traveller takes before they come to a destination and become advocates for other visitors. The further away a visitor lives, the further back in the path to purchase they start their decision-making process. In regional markets where destination awareness is high, much of the decision to travel is influenced by individual events and experiences, the friends and relatives they come to visit and the individual hotels and attractions, events, festivals and experiences they want to enjoy. In longer-haul markets, there is an essential investment required to put Calgary on the consideration list and help travellers make a vacation movie in their minds so that Calgary will occupy mind space leading them to plan a trip to our uniquely cosmopolitan destination. Each tourism stakeholder plays a specific and effective role on the path to purchase: The Canadian Tourism Commission (CTC) takes the lead in generating awareness and consideration to visit Canada; Travel Alberta puts Alberta on the consideration list and plants the idea of visiting Calgary; Tourism Calgary inspires the visitor to plan a trip to Calgary; The local tourism community provides the trip details, finalizes the bookings and delivers memorable experiences; Advocacy starts when the visitor is here and both the local tourism industry and Tourism Calgary enable and foster advocacy and ultimately, repeat visitation. The path to purchase is an important organizing principle that enables Tourism Calgary to align with the industry. CTC TOURISM CALGARY TRAVEL ALBERTA on dream list on consideration list aware advocacy exploring Calgary the path to purchase booking a trip finalizing travel arrangements creating a vacation movie detailed itinerary planning LOCAL INDUSTRY
24 Tourism Calgary corporate scorecard Every decision we make is evaluated by its return-on-investment. For many investments, measurement is clear and we can identify revenue generated. In other areas, results are less easily measured. That does not diminish the discipline we use, nor will we cease to make every investment as measurable as possible. With our organizational goal of generating $2.3 billion in tourism revenue by 2020, we measure our progress against the following metrics and targets on a quarterly and annual basis.
2015 2017 Strategic Plan 25 Strategy What we measure 2012 Actual 2013 Actual 2014 Target 2014 Projection 2015 Target 2016 Target 2017 Target Generate incremental visitation and spend Room nights generated sports and major events 53,645 44,044 50,000 47,000 52,000 54,000 56,000 joint marketing agreements 15,597 23,652 20,000 20,000 23,000 26,500 30,500 online travel agencies n/a 29,270 45,000 50,000 50,000 55,000 60,000 total 69,242 96,966 115,000 117,000 125,000 135,500 146,500 Referrals to industry visitcalgary.com 123,103 165,394 215,000 158,000 247,250 296,700 341,205 visitor information centres 36,479 35,773 36,000 38,000 40,000 40,000 43,000 total 159,582 201,167 251,000 196,000 287,250 336,700 384,205 Tourism expenditures (visitor spending) $1.5 billion $1.6 billion $1.7 billion $1.7 billion $1.8 billion $1.9 billion $2.0 billion Energize the Calgary brand Brand Promotion public relations - media equivalent value $5,100,000 $6,072,863 $6,100,000 $6,100,000 $6,250,000 $6,250,000 $6,500,000 social media engagement 90,610 175,000 200,000 240,000 312,000 390,000 visitcalgary.com visitation 1,012,572 1,306,802 1,450,000 1,414,907 1,667,500 2,000,000 2,300,000 Brand image alignment target market brand image alignment 64% N/A 66% 68% Work together as a destination revenue generated for collaborative marketing support $489,040 $412,145 $445,000 $445,000 $470,000 $500,000 $530,000 industry satisfaction 80% 82% 82% 85% 86% Build organizational excellence general and admin cost as a % of total expenditures staff satisfaction (benchmark) 9.4% 9.5% 8.2% 8.5% 8.5% 8.5% 8.5% *To end of Q3 **Change in reporting in Q#
26 Tourism Calgary statement of operations Actual 2013 Budget 2014 Estimate 2014 Budget 2015 General Funding City of Calgary operating grnt 2,426,194 2,428,660 2,433,847 2,643,432 Memberships 372,541 308,000 254,354 240,800 CHA Destination Marketing - 5,055,009 5,000,000 5,000,000 City Grant - Tower assets 25,000 25,000 25,000 25,000 General Funding 2,823,735 7,816,669 7,713,201 7,909,232 Sales & Marketing Program Funding Travel Alberta 652,301 856,076 825,474 965,229 Industry partnership 506,040 520,933 630,099 657,971 Donations in kind 515,384 391,733 278,117 225,625 Destination marketing fees 3,959,984-128,204 409,612 Other grants 273,232 150,000 150,000 - Miscellaneous 161,714 149,918 145,536 156,609 Commissions 10,108-3,480 - Sales and Marketing Program Funding 6,078,764 2,068,660 2,160,911 2,415,045 Total Revenue 8,902,498 9,885,329 9,874,112 10,324,277 Sales & Marketing Expenses Advertising & Promotion 2,690,663 3,230,024 2,989,210 2,994,726 Salary, wages, & benefits 2,437,286 2,646,968 2,593,451 2,912,715 Consultant & Agency Fees 1,501,876 2,003,340 2,427,038 2,197,195 Other 1,602,093 1,326,083 1,149,642 1,445,452 Sales & Marketing Expenses 8,231,917 9,206,415 9,159,341 9,550,088 General Administration Expenses 784,219 746,015 749,207 811,276 Building operations - profit (loss) 77,009 70,455 69,204 87,850 Total Expenses Less Building 8,939,127 9,881,975 9,839,344 10,273,514 Net Operating Profit (Loss) (36,629) 3,354 34,769 50,763 Recoveries less expenditures related to flood 60,055-223,981 - Surplus (Deficit) 23,426 3,354 258,750 50,763
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28 Tourism Calgary board of directors Tourism Calgary Rod McKay Chair Partner (retired) KPMG Michael Casey Chair, Marketing & Stakeholder Relations Committee Counsel Field Law Dan McGowan General Manager Fairmont Palliser Daniel Pigeon Chair, Audit & Finance Committee Chief Financial Officer Stagewest Hospitality Herb Rackliff General Manager Hyatt Regency Calgary Janet Salopek Chair, Governance & Human Resources Committee President & Senior Consultant Salopek Consulting Ltd. Martin Stitt Regional Vice President, Alberta & Prairies, Delta Hotels General Manager Delta Calgary Airport Spencer Villam General Manager International Hotel Suites Calgary Peter Wallis President & CEO The Van Horne Institute Mark Wilson Vice President, Hotel Hotel Arts Hospitality Group Cindy Ady Interim CEO Tourism Calgary Calgary Sport Tourism Authority Doug Mitchell Chair National Co-Chair Borden Ladner Gervais LLP Bruce Graham President & CEO Calgary Economic Development Bob Hamilton Chair WinSport Canada Kurt Hanson Director, Recreation The City of Calgary Dale Henwood President & CEO Canadian Sport Institute Guy Huntingford President & CEO Urban Development Institute Calgary Don Ingram President & CEO CamCar & Associates Ken King President & CEO Calgary Sports and Entertainment Corporation Richard Main Chair Calgary Hotel Association Rod McKay Chair Tourism Calgary Marco De Iaco Vice President, Sales, Sport & Major Events Tourism Calgary City of Calgary appointee - to be named
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200, 238 11 Avenue S.E. Calgary, Alberta T2G 0X8 phone 403.263.8510 toll free 1.800.661.1678 visitcalgary.com