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Tourism at the 'adult table' of provincial politics

Tourism in Alberta is finally at the “adult table” when it comes to provincial political decision makers, according to officials with Travel Alberta at its industry conference this week.
Tourism in Alberta is a billion dollar endeavour and the Bow Valley is right in the heart of Rocky Mountain attractions.
Tourism spending in Alberta reached a record $8.5 billion in 2016 and is the main economic driver for the Bow Valley.

Tourism in Alberta is finally at the “adult table” when it comes to provincial political decision makers, according to officials with Travel Alberta at its industry conference this week.

CEO of Travel Alberta Royce Chwin and Chris Heseltine, the government of Alberta’s tourism division assistant deputy minister of the tourism division, both referred to the fact that tourism has been included in the government’s ministerial policy committee on economic development as a major step in the right direction for what is considered an “industry of industries.”

“The key here is that tourism, for the first time in a long time, is at the big table with the rest of the industry sectors,” Heseltine said on Monday (Oct. 24) at a Travel Alberta industry conference held in Banff.

“Within the last year, it was the formation of a new ministry of economic development and trade as a key step forward. For the first time in a long time, the province is taking economic development and diversification seriously. They are looking at it from a macro perspective of what are the key sectors that need to be at the table and need to be considered for growth and that tourism is there for sure and that is important to remember.

“We are not off on our own anymore as a separate organization, we are considered part of the bigger agenda.”

Having tourism included at the highest level of government discussions on economic development is significant, according to Chwin. He said the staff at Culture and Tourism have worked hard to get tourism at the “adult table” and offered them “kudos” for their hard work.

“There is all the work they have done to pull tourism off the kid’s table, if you will, and get tourism sitting at the adult table,” said Travel Alberta’s CEO.

Chwin said over the past several years the attitudes at the table discussing tourism between industry, the destination marketing organization and government have changed for the better. He said part of the successful working relationship is recognition that each partner at the table has a different responsibility.

“It is really establishing and agreeing on common objectives and then understanding within that we each have very specific roles and responsibilities that need to be complimentary and collaborative,” Chwin said.

Alberta Ministry of Culture and Tourism deputy minister Darlene Bouwsema was appointed in May and also sits on the deputy ministers’ committee on economic development. Minister of Culture and Tourism Ricardo Miranda is on the ministerial level economic development policy committee and Heseltine on the inter-ministerial task force for assistant deputy ministers.

Bouwsema said although there is an economic downturn in other sectors of the province’s economy, tourism has proven to be resilient and contributing to the economy with the industry representing $8.3 billion in spending annually and 127,000 jobs – according to 2014 statistics.

“Over the past year, we have seen new opportunities unfold as our government makes strides towards diversifying Alberta’s economy to help it grow and that is good new for tourism,” she said.

“As recently as last week in her state of the province address, the premier reinforced that economic diversification is a priority for this government and tourism plays an important role in achieving this priority.

“Now, more than ever, our ministries are working together to advance collaborative economic development and diversification projects.”

The government has set a goal of growing tourism to a $10.3 billion industry by 2020, and that means more jobs created, more investment and development in communities and a stronger more diverse economy, according to Bouwsema.

The deputy minister took time to draw attention to the fact that three major tourism-related projects were supported by Alberta Infrastructure this year – something not seen before from that department. The Royal Tyrrell Museum, Calgary Zoo and Fort Edmonton Park will receive approximately $60 million over the next three years for major upgrades to those attraction-based businesses.

In addition to tourism, the government department is responsible for arts and culture, recreation and sport, heritage, voluntary services and museums. Within the tourism division, the 2016 budget is $11.5 million, which is a 10 per cent reduction from 2015.

That funding, however, does come from the provincial government’s hotel levy – a four per cent charge on all room nights in Alberta. The funding for the government represents 19 per cent of what was collected, with the remainder of the $62 million, or $50.5 million, going to Travel Alberta.

The work the tourism division of the ministry does, said Heseltine, is complimentary to what Travel Alberta does. While Travel Alberta focuses on destination marketing and product development, the government focuses on policy development, is in charge of visitor information services across the province, as well as business development and investment attraction efforts.

New tourism attraction development is a major component of the government’s plan to grow visitor spending in the province to $10.3 billion. Heseltine and Bouwsema said the tourism division is playing a major role in the development of new tourism attractions alongside Alberta Parks – a different department in charge of all provincial parks and recreation areas. That department has seen increased budgets in 2016 for maintaining, enhancing and developing new facilities in the park system.

A 2013 study, Bouwsema pointed out, found the overall economic impact for Alberta provincial parks is $635 million in gross domestic product – making it a key partner when it comes to tourism.

“At all levels we are focused on ensuring tourism is seen as an important part of the economic development strategy and that policy and budget decisions being made by our sister ministries consider how they can positively impact the tourism industry,” she said.

Heseltine said the tourism division has been working hard to support tourism-based businesses in the province as well, to either expand what they are already doing or assisting entrepreneurs with new business ideas.

The tourism entrepreneur program was launched by the government in 2016, and held over a dozen sessions across the province for those interested in the process, including one in Banff. Heseltine said out of that, 100 proposals have been submitted and the government is keen to work closely with 25 of those into the future.

The Alberta Investor Tax Credit, which provides a 30 per cent credit to investors into small technology based businesses also includes investments into tourism. Heseltine said the tourism division was able to demonstrate that tax credits for tourism-based investment has worked in other jurisdictions and will help support the industry in Alberta.


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