NSTA coalition summary presentation

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Tourism in the New Economy
Doubling Tourism Revenues in Nova Scotia

2. As Nova Scotia’s leading source of service
sector exports, gross business revenues
from tourism will reach
$4 billion
(approximately double the current level).
Goal 14: Tourism Expansion.

3. $2.02B total revenue 2010
60% Visitors
ie. ‘Export’ Markets
Market
Origin of
Visitors 2013
40% Nova Scotians
Atlantic Canada 54%
Ontario 23%
RoC 12%
United States 8%
Overseas 4%
Baseline:
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4. 1,747,000,000
Total H/H Income
1,420,000,000
Direct GDP
712,000,000
Total government
revenues
69,670
Total
Employment
$
Source:
NSTA
Implications of Tourism Revenue Double.

5.  Tourism is one of the largest and fastest growing economic
sectors in the world – 5% growth in 2013
 Arrivals and revenue growing at the same pace on average
 528 million arrivals in 1996, 1087 million in 2013, 1800 million by
2030
 Expected to increase 3.3% per year through 2030 (Advanced
economies 2.2%, emerging destinations 4.4%)
 80% of world’s arrivals originate from same region
World View.
M K.cSource UNWTO

6. Growing consumption from emerging markets
Natural Resources
Agriculture and Food
Education
Technology and Innovation
Tourism
1.
2.
3.
4.
5.
6.
Dominic Barton
Global Managing Director
McKinsey and Company
“Leading Canada and the World Through the
21st Century Six Opportunities for Canada”
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7. The NSTA’s Role

Attract first-time
visitors from markets
of highest return
Focus on world
class experiences
Focus on private sector
initiative that can attract
first time visitation

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8. Industry’s Role
Close the sale
– pre-trip and
during trip
Drive repeat
visitation by
exceeding visitor
expectations
Invest in
product
Deliver world class
experiences
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9. Government’s Role
Align policy
agenda in
support of goal
Community economic
development
Attraction of inward
investment
Infrastructure
investment
Thereby informing…
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10. Community’s Role
Partner with industry
to deliver destination
development and
marketing
Visitor servicing
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11. Shifting the Focus – NSTA
Focus on marketing as the core business
Invest in markets of highest return
Stop being an operator
Reprofile resources against strategic objectives
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12. Shifting the Focus – NSTA (cont.)
Launch China Strategy
Invest in Air
Feature only world class experiences in marketing
Build Nova Scotia’s tourism confidence
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13. Embrace customer advocacy at broad level
Deliver high quality experiences/exceed expectations
Upsell and build referral
Measure success against revenue generated from
repeat visitors
Prepare to welcome visitors from China
Shifting the Focus – Industry
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14. Embrace $4B goal at the top
Launch ‘all of gov’t approach
Align policies and programs in support of goal
Explore potential for establishing Nova Scotia as a
worldwide centre of excellence for hospitality training
Launch China strategy
Shifting the Focus – Government
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15. Lead the delivery of visitor servicing with focus on
driving visitor expenditures
Develop strategies to attract inward investment
Align community economic development efforts in
support doubling revenue goal
Drive visitation of resident Nova Scotians
Prepare for visitors from China
Shifting the Focus – Communities
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16.  Base Case is $2.02B – 2010 revenue
 Target is $4B revenue in 2024
 Spend per Person – uses 2010 data expressed in
2024 dollars (with inflation assumed at 2%)
 All revenue growth will come from export markets
 Revenue from Nova Scotia residents and ‘same
day’ remains constant (adjusted for inflation)
 Exchange rates – status quo
 Opportunity exists to increase yield/spending per
visitor - premium
Doubling Revenue - Assumptions
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17. Target Visitation 2.7M (from 1.9M in 2013)
Market 2013 Volume Target Volume Expenditures
Atlantic Canada 54%, 1,011,552 44%, 1,200,000 10% premium
Ontario 23%, 432,993 20%, 550,000 20% premium
ROC 12%, 219,119 14%, 375,000 20% premium
U.S. 8%, 159,403 13%, 360,000 20% premium
Overseas 4%, 66,322 7%, 190,000 20% premium
China
Minimal, included in
Overseas
2%, 50,000 20% premium
Doing the Math – $4B Revenue
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Thank You
michele@mckenziestrategies.ca