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Three-Year Strategic Plan

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Three-Year Strategic Plan Three-Year Strategic Plan 2016-2018 Table of Contents Executive Summary Pages 3, 4, 5 Environmental Scan Pages 6, 7, 8 TIABC SWOT Analysis Page 9 Vision, Mission, Core Values, Primary Goals Pages 10, 11, 12 Strategic Priorities Advocacy & Policy Development Pages 13, 14, 15 Communications Pages 16, 17 Membership Pages 18, 19 Operations / Financial Priorities Pages 20, 21 Timeline of Major Initiatives Page 22 Board of Directors & Staff Page 23 Members & Partners Pages 24, 25, 26 2 TIABC 3-year Strategic Plan Executive Summary With more than 19,000 businesses that employ some 270,000 people, the visitor economy in British Columbia generates over $14 billion in direct spending…making it one of the province’s top business sectors. Tourism in BC is a diverse, highly decentralized and fiercely competitive industry. It is described as an industry of industries to reflect this diversity. At its best, tourism celebrates BC’s natural and cultural treasures while supporting job and wealth creation in every region of the province across six product sectors - Accommodation, Transportation, Recreation and Entertainment, Travel Services, Food and Beverage, and Retail. It is dominated by small and medium-sized businesses…the vast majority of which has assets fixed in one location (e.g. hotels, attractions, restaurants, ski hills). Most operators are passionate about tourism and are willing to work hard to create a great industry. The inherent diversity and competitiveness of tourism does, however, bring its challenges. Of primary concern is the tendency toward fractured approaches to tourism development. Effort is required to pull the divergent components together into a cohesive, powerful economic force. A strong tourism advocate that unites the industry is needed to speak clearly about priority issues and represent the collective voice of the visitor economy. Advocacy and policy fit within a tourism eco-system, that when optimized, generates a positive outcome for operators, government, communities and visitors. 3 TIABC 3-year Strategic Plan The Tourism Eco-system Model • GOVERNMENT • DESTINATION MARKETERS • Assure supply • Create demand • Ease of access • Uniied strategy • Policy managment • Brand alignment • Business environment • One team Access Alignment Animation Advocacy • INDUSTRY • TIABC • Close the sale • Stakeholder advocacy • Animate the experience • Remove Barriers • Simplify regulations The Tourism Industry Association of British Columbia (TIABC) was formally established in 1993 (formerly known as The Council of Tourism Associations - COTA) to connect tourism-operators, sectors and destinations together under one major tourism industry advocacy umbrella. While the organization has existed in some fashion since the early seventies, it has gone through several iterations and nearly folded in 2013. However, TIABC survived significant changes to its board, financial challenges and other obstacles to re-surface in a smaller, but equally impactful way. A dedicated 13- member volunteer Board of Directors leads the association and is committed to advocacy, communication, and bringing industry together under the guise of networking events and policy forums. It should be noted that government prefers to have one primary tourism advocacy organization to work with, much like they are used to for other industries such as mining and forestry. However, the sector specific organizations that many of our existing members belong to (e.g. BC Hotel Association, BCDMOA, Wilderness Tourism Association, BC Wine Institute, Canada West Ski Areas Association) play an important role in this united voice. TIABC's 2016 priorities focus on four specific areas: Advocacy & Policy Development; Membership; Communications; and Operations. With an annual budget of $250,000, TIABC must determine on an issue-by-issue basis, where do we lead, participate or follow (i.e. lead, follow or get out of the way)? 4 TIABC 3-year Strategic Plan Strategic Challenges • TIABC had a modest budget surplus in 2015 versus a projected loss of $45,000. This was largely due to some cost savings during the transition between CEOs, higher than projected profit from the BC Tourism Industry Conference, higher revenues from more memberships, and controlled spending. However, TIABC is expected to face an operational deficit in 2016, primarily due to deferred revenues from the BC Tourism Industry Conference which has been moved from October 2016 to February 2017; • Without additional revenues streams (aside from events and member dues), the organization can exist for approximately 18 months; • TIABC’s staffing levels are not sufficient to maintain or satisfy operational or member demands. Additional staff will be required as the organization re- establishes itself at the forefront of industry issues and continues to grow; • The BC visitor economy has come off a record-setting year and is poised for more growth in 2016. However, there are myriad issues that require provincial and federal government attention for the tourism industry to reach its full potential. TIABC is the lead agency on many of the issues. Key Actions • TIABC will need to realize a profit from the May AGM/Summit at Sun Peaks to assist with operating revenues in 2016; • TIABC will need to look for additional revenue sources (e.g. sponsorships, partnerships) to supplement existing revenue sources; • TIABC will need to build its membership base, particularly in rural and outlying communities, through additional stand-alone memberships, as well as joint-memberships with the Tourism Industry Association of Canada (TIAC) and potentially other sector associations; • TIABC will need to find ways to attract additional regional board representation, as well as memberships to be recognized as a truly provincial tourism voice; • TIABC should explore expansion of its territory and influence into the provinces of Alberta, Saskatchewan and Manitoba where there is no tourism advocacy representation, as a means to supplement revenues or enhance effectiveness on behalf of Western Canada’s visitor economy. 5 TIABC 3-year Strategic Plan Political Economic Environmental Societal Scan Technology Environment Political A new federal government was sworn in on Legislative November 4, 2015. Along with numerous other first-term MPs and cabinet ministers, Canada’s tourism minister is new to government and new to the tourism portfolio, which translates into a steep learning curve. However, as part of its election platform, the Liberal government promised several tourism- related policy changes including investment in transportation infrastructure, elimination of visas for Mexicans, and other initiatives that should bode well for both Canada and British Columbia’s visitor economy. 2016 represents an election year in the United States, the largest international visitor market for British Columbia. While the American economy has gained ground in recent months, elections often lead to a temporary softening of the national economy because of government uncertainty, absence of major decision-making, and consumer confidence until the election outcome is known. In British Columbia, voters will be going to the polls in May 2017. Consequently, 2016 will be a year of announcements, incentives, lobbying, campaigning and positioning as the two major political parties jockey for attention. The next 12-15 months represent an opportune time for TIABC and industry partners to push for long-awaited decisions and/or implementation of new or revised policies such as formula funding for Destination British Columbia. Economic The BC visitor economy experienced a record year for revenues, visitation and other key measures in 2015. This was largely due to significant marketing investments, major events, good weather, weaker gas prices, a low Canadian dollar and other factors. It is expected that 2016 will also be a solid year for tourism receipts, potentially surpassing the previous year in key performance indicators. At the national level, tourism numbers were also healthy overall. However, the Canadian economy stalled in 2015 with all signs pointing to the same predicament in 2016, largely based on the decline in resource- based sectors, particularly in Western Canada. The Canadian dollar is hovering around the .70 cent US mark, which is good for inbound and intra-provincial travel (i.e. Canadians staying closer to home), but not good for tourism marketing investments in foreign markets. The Canadian and US economies are going in polar opposite directions at present primarily due to personal debt as Canadians are at a record 170% debt-to-income ratio. The US had its deflationary spiral and has come out of it with the housing market showing signs of a rebound. They are now exiting TARP 6 TIABC 3-year Strategic Plan (money printing, bond buying) and are raising interest rates. Even though Canada’s interest rates are near zero, there is speculation of further cuts to rates to prevent the economy from collapsing. Housing and tourism are the last pillars keeping our economy afloat. Housing affordability is a key issue for the tourism labour market. Internationally, world stock markets experienced their biggest-ever opening day of a new year decline, partially attributable to China’s slowing economy and rising interest rates in the U.S. While markets have recovered marginally, the initial damage remains. Societal With major terrorism-related events around the world, including incidents in tourist hotspots such as Paris and Istanbul, travelers are increasingly more cautious
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