2000 Tourism Revenues Released, Plans Under Way for 2001

TOURISM/CULTURE--2000 Tourism Revenues Released, Plans Under Way for 2001

It is shaping up to be another billion-dollar-plus year for the Nova Scotia tourism industry.

Revenues for the year 2000 are projected to be $1.25 billion and the number of non-resident visitors is expected to surpass 2.1 million. This is the fourth consecutive year that Nova Scotia tourism revenues have exceeded the one billion dollar mark.

Last year's record-breaking tourism growth was a tough act to follow with this year's revenues representing a one per cent drop over last year's $1.256 billion performance. Overall visitation is also down about two per cent to the end of September.

"While traffic and revenues are down slightly, tourism is very much a growth industry," said Eric Mullen, president of the Tourism Industry Association of Nova Scotia (TIANS). "It's important to remember that we're comparing against the biggest year in the industry's history. We remain a billion dollar-plus business, which is one of the fastest growing and sustainable industries in the world."

TIANS joined with the Tourism Partnership Council and Rodney MacDonald, Minister of Tourism and Culture, to share the news at this year's 23rd annual Tourism Conference held at the Westin Nova Scotian in Halifax.

"We recognize that we didn't meet our ambitious industry targets for 2000. But we're pleased with the performance of our 2000 marketing plan," said council chair Doug Fawthrop, managing director of White Point Beach Resort. "Overall the industry has experienced tremendous growth for many years. And while there have been peaks and valleys, the overall growth trend has been positive. We're now working on aggressive marketing and tourism development plans for 2001."

The council is a joint industry-government partnership that leads provincial marketing and product development initiatives in the province. In addition to preparing annual marketing plans, the council introduced a comprehensive long-term tourism strategy at this year's tourism conference. The strategy focuses on growing revenues from the touring market, improving the quality of Nova Scotia's tourism products, building a 12-month season, developing viable niche markets, and improving transportation access and the business environment for tourism.

Factors that may be playing a role in the slight drop in tourism traffic include the price of gas and cooler, wetter weather compared to 1999. Canadian travel to United States has been picking up - at the expense of trips within Canada. The unfavourable exchange rate for Canadians visiting the US is no longer the deterrent it once was, with overnight trips by Canadians to the US up six per cent this year. Overall, Nova Scotia's performance in 2000 compares favourably to New Brunswick and Prince Edward Island, which are also reporting drops.

Research is under way that will help identify emerging changes in the market place as well as provide better explanations for the decrease in visitation to Nova Scotia. That research includes a comprehensive visitor exit survey this year with analysis to be completed early in 2001.

"If you leave aside last year's unparalleled growth, this year's numbers continue our trend of impressive growth," said Mr. MacDonald. "Clearly we have what it takes to compete, thanks to the efforts of so many individuals and communities. Together, we must continue using our confidence, pride and excitement to ensure an even brighter future for this key sector of our economy."

A Nova Scotia Economic Impact Model is used to estimate the impact of tourism. The model estimates spending in areas like accommodation, transportation, restaurants, groceries, entertainment and shopping. It was developed by an independent consulting firm in 1996 in conjunction with TIANS, the Department of Finance, Acadia University and provincial and federal government representatives.

The model also estimates the $1.25 billion means jobs for some 35,100 Nova Scotians with an estimated 2000 payroll of $487 million. It also means $117 million in provincial and municipal tax revenues.

Some performance highlights include:

• Between January and Sept. 30, overall road visitation was down two per cent, with about 1.4 million visitors entering the province. Specifically, Canadian traffic eased by one per cent while US traffic dipped nine per cent. The traffic figures were provided by the Department of Tourism and Culture which counts the number of vehicles arriving at entry points throughout the province. During this same period, air visitation was up one per cent overall, or 410,000 visits.

• Provincial room nights sold were down one per cent between January and September over the same period last year. Room-night sales for Cape Breton and Halifax/Dartmouth were both down one per cent, while the Northumberland Shore experienced a 12 per cent decrease. The South Shore experienced a four per cent increase in room-nights sold, while the Eastern and Fundy regions reported an increase of two per cent in room-nights sold. The Annapolis Valley experienced a one per cent increase. The numbers come from monthly occupancy reports submitted by tourism operators across the province.

Other tourism performance highlights, from such statistical sources as Check In, Visitor Information Centres, Nova Scotia Museum and Halifax Port Authority, include:

• Provincial museums are showing a four per cent increase over last year with over 600,000 visitors between January and September 30.

• National parks and historic sites are showing drops, with Cape Breton Highlands down 21 per cent; Kejimkujik holding steady; Halifax Citadel down 13 per cent; Fortress Louisbourg down nine per cent; and Alexander Graham Bell Museum down five per cent.

• Between April 1 and Sept. 30, cruise ship passenger visits were up 42 per cent in Halifax and 20 per cent in Cape Breton.

• Campground occupancy rates were down five percentage points over 1999, with site nights sold down six per cent to the end of September.

• The number of people counselled at provincial Visitor Information Centres around the province dropped 15 per cent. However there was a nine per cent increase in the number of requests for information on Nova Scotia as a travel destination with 467,000 requests so far this year.

To help build the industry, Nova Scotia's Tourism Partnership Council will launch another aggressive marketing plan for 2001 that aims to grow overall visitation and revenues by five per cent and to increase the number of room-nights sold between November and April by 10 per cent.

The plan will continue to focus on key markets in Atlantic Canada, Quebec, Ontario, New England, the Mid-Atlantic States and Europe. Activities will focus on building a 12-month tourism season, growing select niche markets and a strong and integrated marketing plan. The council has also developed a new product development plan that will ensure the experiences Nova Scotia takes to market are ones that visitors are seeking.