Travel Manitoba 2012 to 2015 Business Plan. The Power of Tourism Fuelling Manitoba s Economy

Travel Manitoba 2012 to 2015 Business Plan The Power of Tourism Fuelling Manitoba s Economy

Table of Contents Introduction 01 Vision, Mission, Guiding Principles 02 Travel Manitoba s Role 02 Manitoba Tourism Strategic Context 03 Factors Influencing Manitoba s Tourism Performance 09 Opportunities 10 2012 to 2015 Objectives 11 Strategic Priorities 12 Lead Marketing Excellence 13 Strengthen Relationships with Industry and Governments 22 Collaborate to Build a Competitive Tourism Strategy 24 Corporate Governance 24 Risk Management 25 Performance Measurement 25 Conclusion 26 II TRAVEL MANITOBA 2012 TO 2015 BUSINESS PLAN

Introduction Manitoba s annual tourism revenues grew by over $200 million from $1.1 billion in 2006 to $1.3 billion in 2010. This growth took place in spite of global economic slowdown in 2008 and 2009, which dramatically impacted international travel including visitation into Canada and Manitoba. Change in the tourism industry is constant and must be embraced in today s new economic reality. We are changing our business model to focus on maximizing investment in marketing activities, placing less emphasis on experiential tourism development and visitor information centre upgrades unless additional resources are secured to support these initiatives. As project funding under the Economic Partnership Agreement ends, our budgets will be reprioritized to maintain the high-volume campaign targeting key long-haul markets, as well as expanding on e-marketing and social media programs. We are focussed on shifting our strategy to ensure that we establish a strong brand for the future. That said, we will market our unique experiences where they will generate the highest possible return for Manitoba s tourism industry. On an international basis, we will leverage our marketing investment through partnership with the Canadian Tourism Commission. Travel Manitoba has embarked on a journey towards enhanced organizational excellence by focussing on changing the way our team thinks, improving business processes and finding operational efficiencies across all lines of business. Accountability on spending is an important focus and areas for continuous improvement will be explored. Our goal is to find new ways to do more with our available resources...to be innovative and to explore new opportunities. Furthermore, we believe that the business community and governments can do much more to capitalize on the opportunities that tourism offers opportunities to create jobs and generate taxes that will support key public priorities such as health and education. Simply put, with greater investment comes greater returns. Manitoba is on a roll. We are excited about the changes that are happening in Manitoba through the introduction of new tourism attractions, events and facilities. Manitoba offers visitors travel experiences that cannot be found anywhere else, and now is the time to overcome challenges, sustain the momentum and build Manitoba s tourism brand. And now is the time to invest in the future. TRAVEL MANITOBA 2012 TO 2015 BUSINESS PLAN 1

Vision Travel Manitoba will lead the marketing and development of Manitoba s tourism industry. Mission Grow tourism revenues by harnessing the collective investment in tourism to create strong connections between visitors and Manitoba s unique experiences. Guiding Principles Leadership Innovation Collaboration Continuous Learning Sustainability Accountability We will lead in marketing Manitoba s tourism experiences and in providing advice to stakeholders to maximize Manitoba s tourism potential. We will find new ways to address challenges and opportunities. We believe in the power of teamwork and will partner with stakeholders to maximize impact. We will take risks and learn from successes and failures. We will contribute to the economic, social, cultural and environmental well-being of Manitoba. We will deliver what is promised to our partners and will strive to strengthen relationships, improve productivity and overall efficiency. Travel Manitoba s Role Travel Manitoba is a provincial Crown corporation wholly owned by the Province of Manitoba. The corporation reports to the legislature through the Minister of Culture, Heritage, and Tourism as outlined in the Travel Manitoba Act. Our purpose is to lead provincial tourism marketing initiatives and to foster development, growth and diversity in the tourism industry throughout Manitoba. Our role is to provide leadership by working closely with tourism businesses, communities, destination marketing organizations and governments to realize the full potential of tourism for Manitoba. We are charged with the responsibility to collaborate with the tourism industry and advise government on issues that affect Manitoba s global competitiveness. Travel Manitoba plays a leadership role in organizing partnerships to maximize and leverage the impact of collective marketing dollars. We provide value to the industry by representing numerous communities and experiences in markets where they do not have the resources to sustain an independent market presence. We strive to provide consistent messaging for Manitoba in Canada and in the international tourism marketplace. Travel Manitoba supports industry development initiatives and partners with the Manitoba Tourism Education Council to ensure the tourism workforce is trained to exceed customer expectations. Travel Manitoba s board of directors brings together a diversity of tourism operators and sector associations around shared interests, to inform the provincial government and the business community on the importance of tourism and its significant contribution to our economy and quality of life. 2 TRAVEL MANITOBA 2012 TO 2015 BUSINESS PLAN

Manitoba Tourism Strategic Context Tourism is one of the largest and fastest growing economic sectors in the world and international tourist arrivals are projected to reach 1.6 billion worldwide by 2020. Globally as an export category, tourism now ranks fourth after fuels, chemicals and automotive products. The Value of the Tourism Industry in Manitoba The contributions of visitors travelling to and within Manitoba positively impact our province. According to the latest statistics released by Statistics Canada, total expenditures in Manitoba increased by 5.8% from $1.19 billion in 2009 to $1.26 billion in 2010 (approx 2.92% of GDP). Manitoba residents are also a vital part of the tourism industry, contributing $766 million to the provincial economy each year. Unlike other export sectors that make products and ship them overseas, tourism brings its customers to Manitoba. The product we are selling is Manitoba itself the people, the places, the food and the culture. In 2010, tourism in Manitoba generated $492.2 million in export revenue. Manitoba $765.9 Million 7,327,000 person visits $105 per person visit Other Canadian Provinces $319.6 Million 836,000 person visits $382 per person visit 25% 61% 10% 85% 10% United States $126.6 Million 370,000 person visits $342 per person visit 4% Total Visitor Spending $1,258,111,000 Overseas $46 Million 66,000 person visits $698 per person visit 4% 1% Total Visitation 8,599,000 Source: Statistics Canada Travel Survey of Resident of Canada (TSRC) and International Travel Survey (ITS), Research Resolutions 2010 Detailed Tabulations. Receipts for International Students & Commuters have been removed in the 2010 tables, due to an unacceptably low sample size. Tourism and Hospitality Businesses Tourism impacts all our communities. Directly and indirectly it involves a huge range of businesses, from hotels, restaurants and attractions to grocery stores, accountants and construction companies. Travel Manitoba s activity benefits Manitoba s tourism industry, which includes some 5,262 small and medium-sized businesses. The tourism sector creates jobs, especially for new entrants to the workforce. In Manitoba, tourism sustains in excess of 24,800 direct, indirect and induced jobs. TRAVEL MANITOBA 2012 TO 2015 BUSINESS PLAN 3

The Benefits of Tourism A strong tourism sector benefits Manitoba s taxpayers by contributing to their quality of life through public investments in parks, transportation infrastructure, attractions, events and event facilities. Tourism generates significant tax revenues for all levels of government. In 2010, over $554 million in taxes was realized. Total Taxes Contributed by Tourism Wages and Expenditures (2009) Federal taxes $249.6 million (44%) Provincial taxes $243.4 million (44%) Municipal taxes $60.8 million (12%) Total $553.8 million The tourism sector creates jobs, especially for new entrants to the workforce. In Manitoba, tourism sustains in excess of 24,800 direct, indirect and induced jobs. The Benefits of Tourism Diversification of tourism industry infrastructure Contributions to the balance of payments Increase in tax revenues Improved job opportunities Improved income of residents Improved shopping facilities Improved transportation and communications Improved medical facilities Improved cultural facilities Improved recreational facilities A feeling of pride Favourable changes in our lifestyles Improved quality of various services (e.g. hotels, restaurants, shops) What Tourists Spend Their Money On Accommodation Transportation & Tours Food & Beverages Attractions/Events & Entertainment Shopping Other Services & Facilities How the Tourism Industry Spends Its Money in the Local Community Wages & Salaries Transportation of Goods Utilities, Services (Water, Gas, Electricity, etc.) Food & Beverages Provincial Taxes Commissions to Agents Music & Entertainment Purchase of Stock Administrative & General Expenses Fuel Legal & Professional Services Rental of Premises Capital Assets & Replacement Who Benefits 4 TRAVEL MANITOBA 2012 TO 2015 BUSINESS PLAN Restaurants Gas Stations Farmers Retailers Charities Travel Agents Taxi Drivers Theatres Galleries Manufacturers Suppliers Delicatessens Gift Shops Film Processors Artists Pharmacists Shopping Centres Trucking Companies Post Offices Engineers Clerks Pilots Car Dealers Builders Banks Wineries Mechanics Plumbers Electricians Marine Dealers Architects Media News Agents Night Clubs Health Services Printers Butchers Cinemas

Tourism generates significant tax revenues for all levels of government. In 2010, over $554 million in taxes was realized. TRAVEL TRAVEL MANITOBA MANITOBA 2012 2012 TO 2015 TO 2015 BUSINESS BUSINESS PLAN PLAN 5 5

Market Share Over the last three years, governments expanded investment in Travel Manitoba to promote travel to residents under the Celebrate Manitoba, Homecoming and International Marketing initiatives. Manitoba s annual tourism revenues grew by over $200 million from $1.1 billion in 2006 to $1.3 billion in 2010. With continued strategic investment support, the tourism industry can capitalize on an ever-expanding market potential both domestically and globally. Increased investment in marketing, experiential tourism development, research and visitor services will leverage private sector support to make Manitoba more competitive. According to Statistics Canada s total tourism expenditure data from 2010, Manitoba ranks seventh in Canada amongst provinces and territories, trailing behind Nova Scotia and Saskatchewan. This ranking has stayed the same for the past three years. Ontario, Quebec, British Columbia and Alberta are the top four tourism expenditure generators. This plan aims to increase market share to have Manitoba rank fifth amongst Canadian jurisdictions by 2017. 6 TRAVEL MANITOBA 2012 TO 2015 BUSINESS PLAN

Tourism Outlook According to the Conference Board of Canada, total overnight expenditures are expected to increase by 6.4% in 2011 and 3.5% in 2012. Tourism in Manitoba is projected to maintain a good growth rate over 5% from 2013 onward. Manitoba 2010 2011f 2012f 2013f 2014f 2015f Total (000 s overnight province visits) 3,388 3,414 3,476 3,585 3,697 3,805 0.8 1.8 3.1 3.1 2.9 Domestic 3,110 3,144 3,205 3,307 3,414 3,515 1.1 1.9 3.2 3.2 3.0 Business 198 202 206 212 218 223 2.1 2.0 2.8 2.7 2.5 Pleasure 1,361 1,377 1,405 1,451 1,499 1,546 1.2 2.0 3.3 3.3 3.1 United States 213 204 203 206 209 213-4.0-0.6 1.5 1.6 1.5 Overseas 65 67 69 71 74 77 3.0 2.8 3.9 4.2 4.2 Total Expenditures ($ millions overnight) 974 1,036 1,073 1,132 1,194 1,255 6.4 3.5 5.5 5.5 5.1 Travel Price Index 3.03 5.29 1.31 2.30 2.20 2.15 f = forecast Sources: Statistics Canada (2010). The Conference Board of Canada According to the Conference Board of Canada: In the next few years, consumer confidence in Canada is expected to increase gradually to reach 91.3% of the history average level created in 2002. Domestic air capacity is expected to increase for most provinces in the first half of 2012 (Manitoba: +3.1%), (YT, BC, and NB are exceptions). Domestic travel is only expected to increase slightly in 2011 and 2012 (0.7% and 1.8%) and is expected to pick up speed from 2013 and beyond. It is interesting to note that Manitoba ranks third in tourism growth projections for 2012, trailing behind Alberta and Saskatchewan. TRAVEL MANITOBA 2012 TO 2015 BUSINESS PLAN 7

To remain competitive, Manitoba tourism businesses will need to continually invest in the development of new experiences. 8 TRAVEL MANITOBA 2012 TO 2015 BUSINESS PLAN

Factors Influencing Manitoba s Tourism Performance Competition Economic Uncertainty Technology Branding Alignment Funding Air Access Transportation Traveller Expectations Traveller Perceptions Volatility Labour Tourism is one of the fastest growing sectors in the global economy. Countries that previously attracted very few visitors are now aggressively competing for market share. Other Canadian jurisdictions such as Saskatchewan, Newfoundland and Labrador, and Nova Scotia, have significantly increased their marketing budgets in an effort to compete in the new tourism economy. Travel Manitoba, now lagging behind significantly, is at a distinct competitive disadvantage. Delayed economic recovery and the evolving second round of economic decline will result in more conservative travel in the short term. Economic indicators continue to predict that Manitoba is well-positioned to weather the impacts of the economic uncertainty with a welldiversified economy, immigration, and strong population growth. Consumers today are using technology to make informed decisions about vacation destinations. Over 75% of travel purchasers are now using online sources to research their purchases with 28% depending on review sites and 8% on social networks. Word of mouth has become more influential in the consumer s decision-making process. Effective branding of Manitoba as a premier tourism destination requires agreement and cooperation amongst a wide range of stakeholders. Strong leadership is required to motivate the public and private sector to work together within limited budgets. Manitoba is at a competitive disadvantage in terms of the overall investment by business and governments in development and marketing. Manitoba s direct air access from key U.S. and overseas markets is limited and remains a significant barrier to growth from international markets. This is heightened through the issue of passport requirements, specifically U.S. travellers. Improvement to rail services, roads and highways in the province is required to meet visitor expectations. New tourism destinations are competing more fiercely than ever for the same traveller by delivering high-quality experiences. To remain competitive, Manitoba tourism businesses will need to continually invest in the development of new experiences. Canada is perceived to be expensive. This, combined with the high value of the Canadian dollar, will require special initiatives that promote the compelling value of Manitoba experiences. Manitoba also has to compete within Canada for traveller attention. Unpredictable impacts such as weather, pandemics or terrorism may significantly affect consumer travel decisions. Operators in rural and northern Manitoba are experiencing labour shortages. Innovative strategies are required to address these challenges. TRAVEL MANITOBA 2012 TO 2015 BUSINESS PLAN 9

Opportunities Increased Consumer Demand Baby Boomers Immigrants/International Students Unique Manitoba Product Job Creation Manitoba s International Image Worldwide tourism revenues exceeded $919 billion in 2010. Globally, world tourism arrivals are expected to double by 2020 (UNWTO). Wealthier travellers and emerging economies will contribute to increased demand. The baby boom generation is travelling extensively to international destinations. As this generation ages, acquiring more money and time to travel, keeping them within and/or attracting them to Manitoba becomes even more challenging. We must develop and market competitive tourism experiences to capture this growing market. Immigration to Manitoba has increased significantly in the last 10 years. Today, Manitoba hosts over 6,000 international students at its universities and colleges. These newcomers tend to travel in their new region, getting to know their new surroundings. This also provides a unique opportunity for Travel Manitoba to serve these ethnic markets with tailored tourism offerings for specific cultural backgrounds. Our outstanding niche experiences such as fishing, hunting, unique wildlife safaris, culture and the arts will motivate existing and new customers to visit more of Manitoba. The NHL is here and a number of new and enhanced attractions including the Canadian Museum for Human Rights, Assiniboine Park Conservancy/ Polar Bear Conservation Centre, an expanded Winnipeg Convention Centre and Pimachiowin Aki World Heritage Project (UNESCO World Heritage Site) are set to open in the next three years. These attractions will add value in positioning Manitoba as part of a cross-canada touring vacation. Growth in the tourism sector will create jobs for Manitobans not only in the hospitality sector, but in creative and digital economies. Canada s tourism marketing sector is a major customer of digital businesses and growth will stimulate job creation in high value knowledge-based industries. A strong tourism brand will position Manitoba as a great place to live and invest in to stimulate trade growth. The tourism brand could evolve to be the face of Manitoba to the world by promoting our people, landscapes and social and cultural values. 10 TRAVEL MANITOBA 2012 TO 2015 BUSINESS PLAN

2012 to 2015 Objectives Lead the provincial tourism initiative. Target to achieve 6% annual growth to generate $1.7 billion in expenditures through increased visitation and increased yield per overnight visitor by 2015. Increase investment in the tourism sector by partnering with business and government, targeting to increase Travel Manitoba s total annual budget to $14 million by 2015. Build stronger relationships with industry stakeholders: Aim to be the first resource that tourism industry operators consider when they are looking for tourism information, development assistance and marketing advice. Align government and business investment in tourism marketing. Rank fifth in terms of market share amongst Canadian provinces and territories by 2017. Establish a strong brand for Manitoba within Canada and internationally. We will continue to implement crosstraining programs and share experiences and knowledge within the team to build organizational capacity that will allow us to make more effective decisions, work smarter and provide a better experience. TRAVEL MANITOBA 2012 TO 2015 BUSINESS PLAN 11

Strategic Priorities Success will be achieved by focussing on the following strategic priorities: 1. Lead Marketing Excellence 2. Strengthen Relationships with Business and Government 3. Collaborate to Build a Competitive Provincial Tourism Strategy 12 TRAVEL MANITOBA 2012 TO 2015 BUSINESS PLAN Travel Manitoba will concentrate efforts on experiences and markets where Manitoba has a competitive advantage.

Lead Marketing Excellence Key Markets Travel Manitoba will concentrate efforts on experiences and markets where Manitoba has a competitive advantage. Assuming increased investment by both the public and private sector, we will focus on the following markets: Primary: Secondary: Emerging: Manitoba, Ontario, Saskatchewan, North Dakota and northern Minnesota Long-haul United States, Germany, United Kingdom France, Australia, China and India In long-haul and overseas markets, Travel Manitoba leads in partnering with the Canadian Tourism Commission to develop and promote signature experiences. Unlike larger provincial jurisdictions, retreating from any of our major markets will prove detrimental as the tourism industry relies on Travel Manitoba to lead and invest. However, with the expiry of project funding, we may be faced with limited resources. Our strategy will focus on building the tourism brand by targeting Manitobans and neighbouring states and provinces on the excitement and quality of our tourism attractions. Having residents as our ambassadors will be our greatest asset. Understanding Our Customer Travel Manitoba s activities will be based on strong research. It is important that we understand our customers and the travel experiences they are looking for. Our desire is to match experiences available in Manitoba to the needs of potential visitors. Consumers undertake a complex planning and purchase process to gather information to make a decision on a travel purchase. They buy a combination of places to visit, places to stay and things to do. It is critical that Manitoba s tourism industry connects with consumers before, during and after their trip. Travel Manitoba s strategy will include actions that will impact consumers at every stage of the vacation planning and purchase process. Travel Manitoba will make decisions based on sound research and will clarify stakeholder roles along the consumer path to purchase. 1. Aware 2. On Dream List 3. On Consideration List 4. Creating a Vacation Movie Travel Manitoba will explore the benefits of adopting the Canadian Tourism Commission s (CTC) Explorer Quotient (EQ) segmentation tool both regionally and internationally to drive increased visitation to the province. EQ is a proprietary segmentation model that will help us understand why people travel and the values that inform their travel decision. EQ is a more sophisticated tool for connecting with those consumers who will be most receptive to Travel Manitoba s message by categorizing consumers into nine traveller or person types, each with its own psychographic profile. By partnering with the CTC on EQ, we will have access to sound research that will drive marketing-related decision making, providing Manitoba with a stronger competitive advantage. We will align international and domestic segmentation and work from a single model across all markets. In addition, by using EQ, Travel Manitoba can leverage the CTC s investment in international markets. Partnership with the CTC also allows Travel Manitoba to leverage their investment internationally. 5. Detailed Itinerary Planning Consumer Path to Purchase 9. Advocacy 8. Exploring Canada 7. Booking a Trip 6. Finalizing Travel Arrangements TRAVEL MANITOBA 2012 TO 2015 BUSINESS PLAN 13

It is critical that Manitoba s tourism industry connects with consumers before, during and after their trip. 14 TRAVEL MANITOBA 2012 TO 2015 BUSINESS PLAN

Lead Marketing Excellence Driving the Brand Strategy In 2010, Travel Manitoba invested in the development of a new brand. We will continue to build on the foundations of our brand strategy for primary, secondary and emerging markets. Our brand platform represents a strategic approach that defines our competitive positioning, value messaging and desired takeaways as follows: For adventurers and families seeking unforgettable experiences, Manitoba provides rejuvenation, connectedness, surprise and excitement through accessible wilderness, unique cultural attractions and welcoming people. Travel Manitoba will inspire potential visitors by promoting tourism experiences where Manitoba has competitive strength using the web, media relations, social media, travel trade and consumer direct marketing (mix will vary by market). Travel Manitoba s brand will be the base for all communications related to promoting tourism in Manitoba. We will provide leadership in ensuring messaging is consistent and defines what Manitoba is and how we are distinguished from the competition. We will develop a brand toolkit that will enable tourism operators to differentiate the experiences they offer from those being sold in other parts of the world. We will lead by organizing partnerships with regions, destinations and key sectors to maximize our collective marketing dollars. Expanding Investment in the Web and Social Media Increasingly the consumer channel of choice is online. Travel Manitoba will harness the power of digital marketing with mobile, email, website, and social media that are integrated with traditional channels. We will be strengthening our online presence as an effective e-marketing system making it easier for customers to research their Manitoba vacation and differentiate Manitoba from competing destinations. Building robust provincial websites is critical to generating high traffic to industry suppliers. Travel Manitoba will: Update travelmanitoba.com web functionality to better serve consumer expectations and enhance connections to regional and destination websites and simplify information access. Integrate area and experience specific searching. Upgrade and refresh travelmanitoba.com network of international and experiential websites. Launch new mobile sites and applications. Explore the benefits of securing a new tourism information system that will add new functionality and enhance tracking capabilities. Invest in emerging technology to deliver travel information to consumers, the travel trade and the media. We will also strengthen the impact of the provincial tourism brand by partnering in international markets with the Canadian Tourism Commission (CTC). Because less than 1% of potential overseas visitors are aware of the provinces in Canada, Manitoba must first be positioned under the Canada Brand. Our efforts in overseas markets will focus on building relationships with the travel trade and media. These are important channels to reach a high number of consumers regarding Manitoba as a vacation destination. Engaging media and the travel trade through experiential familiarization tours, providing broadcast-quality video, imagery and information will generate positive stories about Manitoba destinations. TRAVEL MANITOBA 2012 TO 2015 BUSINESS PLAN 15

Lead Marketing Excellence The influence of social media is tremendous. It encourages potential consumers to purchase by leveraging the positive experiences of travellers to attract new visitors and encourage repeat visitation. User-generated content is critical to building future success as online viewers become inspired to experience Manitoba. Social media will become a more important part of Travel Manitoba s marketing strategy, as online social networks, blogs and discussion forums become increasingly a part of daily life. Travel Manitoba will ensure Manitoba s tourism experiences are present where potential visitors are speaking by showcasing video and photos and by communicating timely travel offers. Travel Manitoba will also partner with industry to mentor operators in delivering effective social media strategies. In the longer term, social media will become standard practice and offer the greatest opportunity to create a strong endorsement of Manitoba and its unique tourism offerings. Creating Visitor Experiences Travel is becoming more and more about new experiences and adventures that allow visitors to fulfill their dreams. Manitoba offers exceptional experiences from urban escapes to outdoor adventure. The warmth of our people and the quality of services provided by communities and businesses are key to encouraging repeat visitation. Great experiences in Manitoba will lead visitors to increase their spending by participating in more activities, extending the length of their trip, returning for another trip and recommending Manitoba to others. CTC s Signature Experiences Collection The CTC Signature Experiences Collection aims to differentiate Canada from our competitors by highlighting travel experiences that exemplify Canada s unique brand experiences that are memorable, authentic and engage travellers with our people, geography and culture. The program aims to shift travellers perceptions about Canada so that they will understand us as a unique destination with more to offer than they imagined. Partnering with the CTC will allow Manitoba to market our signature experiences on the world stage, a strategy that we could not deliver upon independently. Manitoba is proud to have seven CTC Signature Experiences and will continue to collaborate with industry partners to achieve 15 experiences by 2015. Our seven existing CTC Signature Experiences are: Marvels of Manitoba Churchill Nature Tours Birds, Bears and Belugas Churchill Wild Polar Bears by Tundra Buggy Frontiers North Adventures Heartland Travel s Hermetic Code Tour of the Manitoba Legislature Heartland International Travel and Tours Pathway of the Voyageurs Aikens Lake Wilderness Lodge The Lazy Bear Wilderness Expedition Lazy Bear Lodge Polar Bear Adventure The Great Canadian Travel Company We are changing the way we do business from selling products to selling experiences. Travel Manitoba is aligning with the Canadian Tourism Commission and focussing our efforts on experiential tourism development. We will encourage businesses to market their products as experiences rather than commodities. Our team will provide advice in helping businesses develop new opportunities and how to best market these new experiences. Rural communities and regions are fundamental to the social and economic well-being of Manitoba. We will strengthen our connection with rural communities and tourism operators to assist them in bringing new tourism experiences to market. We will also partner with Tourism Winnipeg to feature urban experiences in our campaigns. 16 TRAVEL MANITOBA 2012 TO 2015 BUSINESS PLAN

Lead Marketing Excellence Identifying new and emerging experiences for the high-volume market provides a great springboard for building Manitoba s tourism export capability. The products we are selling are Manitoba experiences the people, the places, the food and the culture. We re not like other export sectors that make products and ship them outside the province. We bring our customers to Manitoba. We have the opportunity to work with industry to promote emerging tourism experiences that are not only memorable and inspirational, but help visitors learn about our society and our environment. We cannot achieve a sustainable tourism industry by focussing exclusively on the management of existing travel experiences. Having our team actively involved with partners to learn about the new experiences that our industry offers and their evolving customer base is essential to achieve growth. Travel Manitoba will provide leadership in promoting new experiences developed by our partners. Travel Manitoba also believes that it is important to lead in creating new experiences to reach new visitors, extend length of stay and adapt existing experiences to attract new markets. Additional private and public investments will increase our capacity to deliver experiential tourism development programs. NEW OFFERS LAYER ON EXPERIENCES CREATE NEW EXPERIENCES EXISTING OFFERS MANAGE EXISTING TRAVEL ADAPT TO REACH NEW MARKETS EXISTING TRAVELLERS NEW TRAVELLERS Adapted for tourism by: Nancy Arsenault (2011) from Tim Brown (2010). TRAVEL MANITOBA 2012 TO 2015 BUSINESS PLAN 17

Having our team actively involved with partners to learn about the new experiences that our industry offers and their evolving customer base is essential to achieve growth. 18 TRAVEL MANITOBA 2012 TO 2015 BUSINESS PLAN

Visitor Information Services Strong visitor information services motivate tourists by peaking their interests in unique Manitoba experiences and by welcoming them to Manitoba. Travel Manitoba will continue to deliver exceptional visitor information services by: Ensuring content about experiences in Manitoba is provided to consumers at the right time and in the right context. Consumer websites will play a critical role in attracting attention in planning the vacation during the trip, and in encouraging repeat visitation. Providing easy access to travel information to more visitors with new mobile websites and applications. Creating a refreshed leading edge, combined visitor information centre and Travel Manitoba head office located at The Forks in Winnipeg Manitoba s busiest tourism destination. This too will result in a new way to do business at the Visitor Information Centres, where we will become informed retailers of Manitoba tourism products. Making signature visitor information centres at points of entry to the province strong destination centres by partnering with private businesses (e.g. retail, restaurants), offsetting Travel Manitoba s costs of operation and generating a new revenue source through shared sales or both. Working with technology partners to offer increased access to web and mobile services to travellers. Adopting emerging technologies to provide comprehensive and timely travel planning information. Provide more flexibility in operations by hiring seasonal and contract staff. Encouraging investment in infrastructure that brings high-speed internet services to rural and northern tourism businesses. Long-term tourism success is dependent on a province-wide information and technology infrastructure where consumers can easily access information from tourism operators through the internet. Investing in Strategic Market Development Opportunities Winnipeg An Emerging International Destination Significant investment in new and enhanced experiences, including the opening of the Canadian Museum for Human Rights and the Journey to Churchill Exhibit, creates tremendous potential for Winnipeg to rise as an international destination. Travel Manitoba will partner with Tourism Winnipeg and operators to develop promotions targeting consumers, the travel trade, media relations, major event acquisitions, as well as meetings and conventions. Fishing and Hunting Our world-class catch and release fishing has given Manitoba a strong reputation as a leader in sustainable fishing in the upper Midwest and Southern United States. The Manitoba Lodges and Outfitters Association (MLOA) has identified that there is tremendous potential for growth in the hunting sector as well. Visitors seeking these experiences generate a higher yield due to the longer duration of visitor stays and the higher daily expenditure. Travel Manitoba will work in partnership with the MLOA to explore new opportunities to target these important segments. Arctic Safaris As the Polar Bear Capital of Canada, Manitoba has drawn attention in long-haul markets, including the United States, the United Kingdom, Germany, Australia and China. The appeal of the majestic giants of the North and the playful beluga whales create opportunities to position our province as the international destination to experience Arctic Safaris. These experiences have the cache to compete with safari experiences offered around the world. TRAVEL MANITOBA 2012 TO 2015 BUSINESS PLAN 19

Student and Youth Market The Student and Youth market is a large segment, internationally representing 20% of global arrivals in 2010, and it is growing faster than any other segment (3 to 5% annually). Students and youth generally travel outside of high season. The Canadian Tourism Commission is developing an opportunity to activate youth travel by designating 2017 as the Year of Youth Travel (Canada s 150th anniversary). The CTC research has identified that provinces and territories have the potential to offer truly extraordinary experiences to youth. The CTC is working towards an aggressive domestic campaign in 2017 aimed at stimulating pride in Canada and creating lifetime travel advocates. Travel Manitoba will establish a Youth Task Force to develop Manitoba s signature youth experiences. This initiative provides an opportunity to change perceptions about Manitoba and to leverage the efforts of the Canadian Museum for Human Rights in targeting the student and youth market. Meetings, Conventions and Incentive Travel Visitors attending meetings, conventions and events contribute significantly to Manitoba s annual tourism receipts. Travel Manitoba will partner with Tourism Winnipeg, Brandon First, Destination Dauphin and other stakeholders to develop a new action plan to target meetings, conventions, and incentive travel markets. Major Events Travel Manitoba will partner with Tourism Winnipeg, Brandon First and Destination Dauphin to acquire major events and will invest in the development of new events aimed at promoting Manitoba s culinary, music and festival attractions. Events on the horizon include a bid to host the Juno s in 2014 and the Grey Cup in 2015. Welcoming New Canadians and Their Visiting Friends and Relatives Travel Manitoba will deliver a strategy that ensures new immigrants and international students are aware of the tourism experiences offered throughout the province, encouraging them to invite their friends and relatives to visit Manitoba. Aboriginal Travel Manitoba will examine best practices and develop a strategy aimed at creating a dynamic Aboriginal tourism industry that shares high-quality cultural experiences that exceed visitor expectations. 20 TRAVEL MANITOBA 2012 TO 2015 BUSINESS PLAN

Travel Manitoba will support the development of industry capacity by making resources accessible including business development tools, market research and analysis and a broad range of training materials. TRAVEL MANITOBA 2012 TO 2015 BUSINESS PLAN 21

Strengthen Relationships with Business and Government Business Partnerships Travel Manitoba actively partners with businesses to maximize return on investment for the provincial taxpayer. We are committed to exploring co-op arrangements to expand Manitoba tourism s presence while continuing to expand the reach of our programming through advertising sales, partnerships, e-marketing and special promotional opportunities. Over the last three years we have leveraged over $1.5 million in partnership revenues, dollars that have been put into marketing and communicating Manitoba to primary and secondary markets. In addition, partners contribute to campaigns and projects with goods and services rather than financial contributions, which further extend the reach of our marketing campaigns. Travel Manitoba will pursue new marketing partnerships with private sector firms in an effort to increase our annual investment in marketing Manitoba s tourism products. We will continue to serve a wider range of businesses by not limiting engagement to a one size fits all model, ensuring a variety of programs are available to meet the needs of our stakeholders. Travel Manitoba will develop new partnerships that build on the synergies of Manitoba s business communities. Discussions have been initiated with non-traditional partners such as telecommunication firms, major financial institutions, airlines and credit card companies. Travel Manitoba will place more emphasis on engaging the industry to provide input into strategic planning. Face-to-face meetings, visits and research initiatives will help us better understand the offer, the customer and what motivates them to purchase. A Whole of Government Approach Travel Manitoba recognizes that the Government of Manitoba is its primary shareholder. A stronger relationship with senior executives across government is needed in an effort to better educate government on the potential of the tourism industry and how tourism growth can help support key provincial priorities. For example, generating more tourism tax revenues will provide more resources for governments top priorities in health care or education, as well as creating more jobs for Manitobans. Travel Manitoba is asking the provincial government for support when making decisions that affect tourism and for the industry to play a greater part in the decisionmaking process. A whole of government approach to tourism would result in the province applying a tourism lens to decision making. The industry wants to ensure that programs affecting tourism work efficiently together and that provincial departments and agencies see the development of the tourism industry as a priority. A number of provincial departments and agencies provide significant support for tourism through funded programs and through direct control and operation of tourism attractions. It is essential that ministries responsible for economic development, transportation, conservation, education and training, agriculture, trade and immigration fully understand the impact of tourism and are engaged with Travel Manitoba. Advocacy The tourism industry is complex and not well understood. It is incumbent on Travel Manitoba to educate and collaborate with the Business Council of Manitoba, the Manitoba and Winnipeg Chambers of Commerce and destination marketing organizations to elevate the profile of the tourism industry. We recognize that increasing awareness of tourism as an economic driver will influence positive investment in the industry. Travel Manitoba will increase its profile as a leader in stimulating economic growth by: Participating in and delivering presentations on tourism at events throughout the province. Establishing a provincial interdepartmental working group of deputy ministers to focus on tourism and seek collaboration in addressing challenges and opportunities. Providing semi-annual progress reports to the Minister of Tourism; and Seeking to meet annually with senior level government officials and the Premier to seek provincial engagement on key priorities. Addressing Barriers to Growth Travel Manitoba will align with Canadian Tourism Commission and the Tourism Industry Association of Canada who are leading initiatives to eliminate structural barriers at the federal level such as improving the VISA approval process, air access, aviation cost structure issues and border thickening (security barriers). Photo by Mike Grandmaison 22 TRAVEL MANITOBA 2012 TO 2015 BUSINESS PLAN

Travel Manitoba will invest resources to address the following barriers that fall within a provincial scope of influence: Visitor Safety Travel Manitoba will support Tourism Winnipeg s efforts to enhance Winnipeg downtown crime prevention to make the city safe for residents and tourists. Industry Capacity Tourism businesses typically have few employees and operators lack the time and means to develop tools to improve their products. Travel Manitoba will support the development of industry capacity by making resources accessible including business development tools, market research and analysis and a broad range of training materials. Direct Air Access Travel Manitoba will partner with Manitoba Infrastructure and Transportation, the Winnipeg James Armstrong Richardson International Airport, receptive tour operators and Tourism Winnipeg to develop a strategic approach that supports the acquisition of new routes and direct flights to and within Manitoba. Workforce Training Travel Manitoba will partner with the Manitoba Tourism Education Council to engage the tourism workforce and provide resources aimed at ensuring employees are trained to serve as ambassadors for Manitoba. Photo by Brian Goldschmeid TRAVEL MANITOBA 2012 TO 2015 BUSINESS PLAN 23

Collaborate to Build a Competitive Provincial Tourism Strategy Travel Manitoba s goal is to create a single vision for tourism growth. We value the positive relationship that has been developed with governments and the business community and we believe that by working together with our stakeholders we can build a competitive provincial tourism strategy. The public and private sector have invested significantly in product development and in provincial tourism assets in recent years. We believe that by bringing together leaders we will generate new ideas to capitalize on this momentum. Recent investments in memorable new attractions are the foundation for Manitoba to become an internationally competitive tourism destination. Travel Manitoba will collaborate with stakeholders to provide advice to government on key success factors for a strong provincial tourism strategy. A whole of government approach to tourism has proven effective in other countries and will facilitate the establishment of a new tourism policy that supports growth. In addition, a sustainable funding model is needed to leverage further investment from the public and private sector to expand the marketing capacity of the industry. While progress has occurred since the establishment of Travel Manitoba as a Crown corporation, the tourism industry is still highly fragmented. Collaboration will support the creation of an overarching provincial development and tourism branding strategy. Currently, there are varying degrees of collaboration between destination marketing organizations, regional tourism associations and Travel Manitoba. This plan aims to strengthen the relationships with these organizations. Historically, increased public investment in tourism has stimulated innovation, particularly in rural and northern areas of the province. Market demand for a refreshed tourism offering that provides consumers with access to Manitoba s tremendous wildlife and nature is strong. Travel Manitoba will work with stakeholders to develop a business case for investment that supports tourism innovation. We are confident that a collaborative process will reorganize and revitalize partnerships among industry partners, political leaders, governments, and businesses in a way that will help achieve the broad-based outcomes and promote ownership of the recommendations. Corporate Governance Travel Manitoba is responsible to the Minister of Culture, Heritage and Tourism. It is governed by a fifteen member board of directors with management, financial and legal authority under the Travel Manitoba Act. The board provides policy direction and leadership to the organization and provides the president and chief executive officer (CEO) with the responsibility to implement the policies and programs of the corporation. The board of directors approves the strategic priorities, budgets and desired results to be achieved within a defined period. Based on this direction, the CEO prepares strategies, tactics, action plans and program budgets in order to direct the resources of the organization. The board of directors operates through three standing committees: Executive Committee Audit Committee Governance Committee The board of directors is committed to continuous improvements in governance and ensuring that best practices guide the strategic direction of the corporation. 24 TRAVEL MANITOBA 2012 TO 2015 BUSINESS PLAN

Risk Management Travel Manitoba s board of directors reviews a detailed risk analysis annually. Key risks that have been identified for 2012 to 2015 include: Financial/funding stability Economic/external environment Tourism infrastructure Strategic alliances Stakeholder satisfaction Governance Human Resources Performance Measurement Travel Manitoba measures and monitors key indicators for marketing and product development programs on an annual basis including tourism visitation and revenues, employment levels, number of businesses and investments. Increases to the following indicators will be used to measure success for Travel Manitoba: Long Term Annual visitation and spending in Manitoba Yield or spending per visitor Number of industry participants and level of investment in partnered marketing and development programs. Annual Indicators of Success Overall circulation of unpaid media Level of partnership revenues Level of government investment Web analytics number of unique visitors, page views Leads generated for individual operators (through travelmanitoba.com and sales initiatives) Occupancy rates Number of meetings, conventions and major events Number of fishing and hunting licenses issued Number of joint ventures with international tour operators Number of inquiries (telephone, web and visitor centres) Number of approved CTC Signature Experiences Number of new market development initiatives Number of industry participants complying with the Customer Assurance Plan Number of visits to the Tourism Industry website Number of participants in experiential tourism development initiatives Number of nominations for excellence programs TRAVEL MANITOBA 2012 TO 2015 BUSINESS PLAN 25

Conclusion Manitoba is on a roll. Capitalizing on that opportunity is key. Our focus is to improve our services, improve our brand, and improve how we retail our tourism products to Winnipeggers, Manitobans, and travellers the world over. Capitalizing on that opportunity is critical. Travel Manitoba has reassessed where it can add value to the tourism industry and developed a new plan. By collaborating effectively with our stakeholders, we are confident that we will deliver strong results. Travel Manitoba 7 155 Carlton Street Winnipeg, Manitoba R3C 3H8 1-800-665-0040