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Tourism in the New EconomyDoubling Tourism Revenues in Nova Scotia

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.

$2.02B total revenue 2010

60% Visitors ie. ‘Export’ Markets

MarketOrigin of

Visitors 2013

40% Nova Scotians

Atlantic Canada 54%

Ontario 23%

RoC 12%

United States 8%

Overseas 4%

Baseline:

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1,747,000,000Total H/H Income

1,420,000,000Direct GDP

712,000,000Total government

revenues

69,670Total

Employment

$Source:

NSTA

Implications of Tourism Revenue Double.

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.

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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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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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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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Government’s Role

Align policy

agenda in

support of goal

Community economic

developmentAttraction of inward

investment

Infrastructure

investment

Thereby informing…

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Community’s Role

Partner with industry

to deliver destination

development and

marketing

Visitor servicing

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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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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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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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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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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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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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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

ChinaMinimal, included in

Overseas2%, 50,000 20% premium

Doing the Math – $4B Revenue

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Thank Youmichele@mckenziestrategies.ca