2001 Revenue Estimates Released

Nova Scotia's tourism industry is on solid ground with estimated revenues reaching $1.215 billion in 2001. The number of non-resident visitors is expected to reach two million. This is the fifth consecutive year that Nova Scotia tourism revenues have exceeded the one-billion-dollar mark.

This year's estimated revenues represent a three per cent drop over last year's $1.245 billion performance. Overall visitation is also down about nine per cent to the end of September.

"With today's announcement, the business of tourism in Nova Scotia continues to demonstrate its dominance as a major sector of the provincial economy," said Karl Webb, president of the Tourism Industry Association of Nova Scotia (TIANS). "We are a billion dollar-plus business that provides jobs for tens of thousands of Nova Scotians, and we are well positioned to ensure continued growth."

TIANS joined with Paul Stackhouse, chair of the Tourism Partnership Council and Rodney MacDonald, Minister of Tourism and Culture, to share information on tourism performance at this year's 24th annual tourism conference held at the Westin Nova Scotian in Halifax.

"Tourism is coming of age as a year-round industry that influences the economy across Nova Scotia in many ways," said council chair Paul Stackhouse, general manager of Holiday Inn Harbourview. "Together with government, we have a new integrated tourism plan in place and a multi-million dollar partnership plan to help the industry grow."

For the first time, Nova Scotia has combined annual marketing and product development plans. The integrated plan introduces new initiatives to further develop Nova Scotia's seacoast, culture and heritage and outdoor and nature experiences.

The Tourism Partnership Council is a joint industry-government partnership that leads provincial marketing and product development initiatives. In addition to preparing annual tourism plans, the council introduced a comprehensive long-term tourism strategy at last year's tourism conference.

"The tourism industry remains strong and resilient in Nova Scotia," said Rodney MacDonald, Minister of Tourism and Culture.

"It is an industry that knows no boundaries, rural or urban. With our new integrated plan, we are well positioned to ensure the growth of this industry, and we will continue to work cooperatively to address and adapt to a very dynamic market situation."

It's estimated that tourism revenues generate 34,000 tourism- related jobs in the province, with a payroll of $476 million. It also means $115 million in provincial and municipal tax revenues.

There are a number of universal factors affecting industry numbers this year, including economic uncertainty and higher fuel prices in 2001 putting a damper on travel.

"But there were some factors more specific to Nova Scotia too, reduced air access being one that will continue to affect us in 2002," Mr. MacDonald said.

And since the events of Sept. 11, Nova Scotia, like many other markets, is experiencing a dramatic increase in room cancellations.

"It's important to recognize that right now it's too early to say what the long-term effects of this tragedy will be on our industry in Nova Scotia or worldwide," Mr. MacDonald said.

Some indicators:

• As of Sept. 30, non-resident overnight visitors to Nova Scotia totalled 1.6 million, down nine per cent from the same period in 2000. Air travel, in particular, was down by 16 per cent at the end of September, with reductions in capacity on some routes. Road traffic was down by seven per cent. Specifically, Canadian traffic was down by six per cent, while US traffic dipped nine per cent. Traffic figures are provided by the Department of Tourism and Culture, which counts the number of vehicles arriving at entry points throughout the province.

• Provincial room nights sold for all of Nova Scotia are relatively flat when compared to 2000, with a one per cent drop between January and September. The Northumberland Shore, Annapolis Valley and South Shore posted gains in room sales; Halifax-Dartmouth was even with last year; and the Eastern Shore, Cape Breton and Fundy Shore regions reported decreases. The numbers come from monthly occupancy reports submitted by tourism operators across the province.

• Provincial museums are showing a 10 per cent reduction over last year, with 550,000 visitors between January and Sept. 30.

• National parks and historic sites are mixed, with Halifax Citadel up 16 per cent to the end of Sept. 30, while Fortress Louisbourg and the Alexander Graham Bell are down four per cent and eight per cent respectively. Visits to Kejimkujik National Park are up 23 per cent over 2000.

There are a number of indicators showing the inherent strength of the industry:

• Between April 1 and Sept. 30, cruise ship passenger visits were up four per cent in Halifax and 55 per cent in Cape Breton.

• Campground site nights sold were up one per cent for May through September.

• As of Sept. 30, requests for Check-In literature were up three per cent over 2000. The number of people counselled at provincial visitor information centres was up 10 per cent.

• Golf activity increased this year, with green fee rounds up five per cent to Sept. 30.

• European visitation was up by 16 per cent to the end of September.

To help build the industry, the Nova Scotia Tourism Partnership Council's new integrated tourism plan will focus on key markets in Atlantic Canada, Quebec, Ontario, New England, the mid- Atlantic states and Europe. The plan calls for new product development initiatives, new programs and promotions to build on e-marketing success, increased efforts to generate more product and more revenue in the summer months, a new creative approach in advertising and a continued focus on seasonal and quality issues.