The Bow Valley is heading into the busy summer season with visitors from near and far flocking to Banff National Park and Kananaskis Country.
But unlike Alberta’s oil and gas industry, which took a hit with unbelievably low oil prices, and now a raging wildfire near Fort McMurray, tourism is looking strong within the province.
Travel Alberta has been engaging tourism operators across the province in a series of town halls, including one held in Banff last Friday (May 6).
CEO Royce Chwin told those gathered for the information session that tourism is more than just a business sector, in fact, it is an economic driver that crosses multiple industries. He said it is an “industry of industries” like accommodation, food and beverage.
But the visitor economy is not isolated from the economic turndown in the province and Chwin said it is important for businesses and destination marketing organizations like Travel Alberta to collaborate and work together.
“We are in unprecedented and incredibly challenging, difficult times for which there is no playbook, there is no set of rules to tell us what we should be doing and when,” he said. “But tourism is alive and well. It is demonstrating … the power of tourism is not connected to the price of a barrel of oil – people still want to visit.”
Chwin said tourism is an incredibly valuable industry in the province, but some don’t value it as much as they should. It is an industry that refuses to slow down, he said, despite there being slow overall economic growth.
“The tourism industry remains resilient,” he said, adding in Canada, tourism represents $80 billion annually and 630,000 jobs. “It is a massive business, but we also don’t necessarily see and feel it because of how many connections tourism has in an industry of industries.”
In Alberta in 2013, Statistics Canada information shows tourism revenue equalled $8 billion and there was a 34 per cent growth in international visitation over 2012. Those international visitors (who also typically spend more per person than a regional traveller) represented $1.22 billion in revenue.
One area Travel Alberta wants to understand better is the effect of a tourism dollar on the overall economy. Chwin said there are indirect and induced effects that the organization wants to better understand.
“That will be valuable as we continue to defend the value of tourism and why it is a good investment,” he said.
In addition to being a good investment, Chwin said, a message Travel Alberta wants out there is that it keeps people employed too. In Alberta, he said, there are 127,000 tourism jobs.
As a bright light in the provincial economy during a difficult time, he said the industry can play an important part in Alberta’s recovery from the oil slump. Looking to the future, Chwin said Travel Alberta has put forward a 2016-22 growth strategy to get the industry to where they want it to be in the next five to six years. That goal is $10 billion in growth by 2020.
While Travel Alberta’s overall budget this year is down $4.95 million, according to Chwin, it is maintaining its cooperative marketing investment program at the same level as in the past – $7 million a year.
The news was welcomed with applause in the room and Banff Lake Louise Tourism CEO Leslie Bruce said it is an important program that helps leverage marketing dollars for local businesses.
“That is huge news and we are very grateful for that commitment,” she said. “This is very much about our ability to work together, be transparent and accountable and optimize our investments. We don’t just want to spend money, we want a return on investment.”
Bruce said BLLT has a strategic growth plan mapped out for the next five years that includes growing year round visitation – with a focus on the shoulder and winter season.
“It is our responsibility and a huge opportunity to look at how to grow revenues the rest of the year and make it a true year-round destination,” she said, adding the goal is to have an overall annual occupancy of 68 per cent.
It is a challenging goal, as hotel room occupancy in Banff and Lake Louise sits above 90 per cent in summer and as low as 44 per cent in November.
The provincial government is also working hard on promoting investment in the tourism industry, according to Patrick Mattern, Culture and Tourism executive director of policy and business development.
Mattern said when it comes to tourism and the economy, the government of Alberta is responsible for more of the product development side of things. He said international investors are interested in Alberta right now and building unique opportunities and attractions.
The program for attracting foreign direct investment to come to Alberta and invest in a unique product offering includes working with companies that may be interested in developing a gondola, ice hotel, glamping opportunities or ziplines, to name just a few.
“The objective is really to assist someone who feels they have a unique idea and we develop these programs and supporting documentation to assist them,” Mattern said.
Currently, the province offers two free guides for those looking to start of expand a tourism business in Alberta.
Other areas the government is focused on for the industry include air access, the tourism entrepreneur program and working with land use frameworks that are in development.
