Communicating the Economic Value of Tourism

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Here's a copy of my presentation at the Ontario's Southwest Conference in 2014. Communicating the contribution of tourism to the local economy can be a challenge. This presentation focused on bridging the gap between tourism and economic development including tips and tools to measure and report the value of tourism in Ontario’s Southwest to the decision makers in our communities.

Text of Communicating the Economic Value of Tourism

  • 1. The Economic Value of Tourism in Ontarios Southwest March 20, 2014

2. Aileen Murray Economic development consultant 25+ years helping businesses and communities grow Clients include municipalities, counties, BIAs, workforce development councils, economic development agencies and the private sector Specializing in strategic planning, marketing and communication 3. Whats the ROI? Source: 4. Goals for todays presentation Review economic development terminology and concepts Prepare credible statements on the contribution tourism makes to the community Apply economic development goals to tourism programming. 5. Economic Development Improving the economic well being of a community through efforts that entail job creation, job retention, tax base enhancements and quality of life. The International Economic Development Council 6. Why Measure Economic Impact? Accountability Sponsorship Funding Programs Government support Community support Compare event performance o To previous events o To similar events in other regions o To other events in the community 7. The Economic Impact Statement Tourism brought ______ visitors to the community. These tourists generated $_______ in economic impact, ______ jobs for the community and added $______ to the local coffers. Photo: 8. The Leaky Bucket Photos 9. Photos Local Economy The Leaky Bucket 10. Local Economy Exports of Goods and Services Tourism Foreign Investment Goods and services purchased outside region Payments for Imports 11. Photos Local Economy Maximize Inputs Minimize Outputs (Leakage) Economic Development Goals 12. The History of Economic Development Industrial Development Investment Readiness Business Retention & Expansion Economic Gardening Creative Economy Knowledge Workers Free Agent Economy 13. Net Change in Cdn. Employment 2007 - 2012 -245,400 805,800 -400,000 -200,000 0 200,000 400,000 600,000 800,000 1,000,000 Manufacturing Service Sector 13 Source: Statistics Canada, CANSIM, table 282-0008 and Catalogue no. 71F0004XCB. 14. Supply & Demand Tourism System POPULATION Interest in Travel Ability to Travel TRANSPORTATION ATTRACTIONS INFORMATION & PROMOTION SERVICES Hotels/Motels Restaurant Retailing Demand Supply 15. Economic Development Definitions Basic Industry industries that produce goods and services sold to consumers outside the region Non-basic industry industries that produce goods and services consumed locally Photo: 16. Tourism Economic Impact Change in sales, income and jobs because tourists came to the community and spent money there. Guidelines: Survey Procedures for Tourism Economic Impact assessment of Ungated or Open Access Events and Festivals 17. The Multiplier The ripple effect from the contribution of new money to the community. Photo: 18. The Multiplier Effect Photos:, Direct Indirect Induced Sales of goods & services to tourists ie. restaurants & accommodation Increased demand by tourism businesses ie. Food suppliers Respending labour income Ie. Shelter, food, clothing 19. The Multiplier Most impact at the centre Larger communities have larger multipliers Smaller communities have smaller multipliers Manufacturing multipliers are typically larger than service industry multipliers Manufacturing multipliers ~ 2 to 3 net jobs for every 1 new job Service industries