Tourism Hamilton 2006 Annual Report (PED07200) (City Wide)

CITY WIDE IMPLICATIONS

CITY OF HAMILTON

PLANNING AND ECONOMIC DEVELOPMENT DEPARTMENT Tourism Division

Report to: Chair and Members Submitted by: Tim McCabe Economic Development General Manager and Planning Committee Planning and Economic Development Department

Date: June 22, 2007 Prepared by: David Adames (905) 546-4132

SUBJECT: Tourism Hamilton 2006 Annual Report (PED07200) (City Wide)

RECOMMENDATION:

That Report PED07200 respecting “Tourism Hamilton 2006 Annual Report”, including Tourism Hamilton’s 2006 Annual Report, attached as Appendix “A” to Report PED07200 and Tourism Hamilton’s 2006 Audited Financial Statements, attached as Appendix “B” to Report PED07200, be received for information.

Tim McCabe General Manager Planning and Economic Development Department

EXECUTIVE SUMMARY:

As part of its service agreement with the City of Hamilton, Tourism Hamilton Inc. is required to report to Council on a regular basis. The Board of Directors is pleased to present Committee and Council with an overview of key accomplishments from 2006.

At its 2006 Annual General Meeting, held on May 25, 2007, the Tourism Hamilton Board of Directors approved the 2006 Audited Financial Statements, discussed accomplishments from Tourism Hamilton’s fourth year of operation and elected a new Executive Committee. The following Directors comprise the Executive Committee:

President: Mark Farrugia First Vice-President: Joumana Ghandour Second Vice-President: Joan Balinson Treasurer: Larissa Ciupka Secretary: Carolyn Puddicombe SUBJECT: Tourism Hamilton 2006 Annual Report (PED07200) (City Wide) - Page 2 of 6

Key accomplishments for Tourism Hamilton in 2006:

• Executed the 2006 Marketing Plan • Project managed the City’s sponsorship and participation in the 2006 Canadian Open golf championship • Serviced key sport events including: CIS Men’s Volleyball Championship; Volleyball Canada National Championship; Skate Canada National Synchronized Skating Championship and Actifest Ontario Senior Games • Restructured the staff complement to align functions with future marketing needs • Administered the Downtown Ambassador Program • Developed new web strategy, including launching new tourismhamilton.com web site • Hosted three industry events: Tourism Awards; Tourism Summit and Spring Networking Session • Full implementation of the Sport Tourism Action Plan, guided by the Sport Tourism Advisory Committee • Won bids for the: o 2007 Rowing Canada Annual General Meeting o 2007 Ontario Soccer Association Annual General Meeting o 2007 World Baton Twirling Championship o 2008 Boys and Girls Club of Canada Conference o 2009 Chemical Institute Conference • Implemented the first year of the new Tourist Information Centre at the John C. Munro Hamilton International Airport, funded in part by Service Canada.

BACKGROUND:

City Council approved establishing Tourism Hamilton in the fall of 2001, and the not-for- profit organization was incorporated on June 26, 2002. Tourism Hamilton is governed by a 19 member Board of Directors, including representatives from 11 tourism sectors, to act as the tourism marketing agency for Hamilton. City Council is represented by Mayor Eisenberger and Councillors David Mitchell and Terry Whitehead.

The latest data on Hamilton’s tourism performance, as outlined in the “Statistics Canada Regional Tourism Profile, Census Division 25, Hamilton-Wentworth Regional Municipality” covers the year 2004 (there is an approximate 18-24 month lag time in receiving this data; 2005 data is expected to be released in the summer of 2007):

• Total person visits to Hamilton: 3,294,099 (5% increase over 2003) • Total spending (tourism receipts) by visitors in Hamilton: $186 million (5.7% increase over 2003) • Economic impact: $132 million (11.9% increase over 2003) • Municipal taxes supported by tourism: $4.2 million (*see above comment) • Jobs supported by tourism: 2,384 (*see above comment)

SUBJECT: Tourism Hamilton 2006 Annual Report (PED07200) (City Wide) - Page 3 of 6

2003-2006 Performance Measurements:

Service 2003 2004 2005 2006 Measurement Tourist 17,996 14,669 14,203 35,788* Information Centre visits Web Unique 87,522 121,926 111,653 135,193 visitors Phone inquiries 7,364 5,101 4,987 5,923 Leads generated 155 tour 280 tour 353 plus mail- 260 tour for travel trade operators; plus operators; outs operators 1926 mail-outs plus 1591 plus 75 mail-outs group leaders Leads and 38 46 111 78 inquiries serviced for travel media Leads generated 53 181 192 185 for conventions Convention and 29/11 39/28 27/16 30/19 sport bids lodged and won Conventions and 157 133 137 129 sport events serviced Hotel 59.6% 62% 60.9% 62.9% Occupancy Rate Hotel Average $98.84 $95.97 $100.47 $103.00 Daily Rate Revenue per $51.02 $52.27 $57.26 NA available room Municipal taxes $3.72M $4.23M NA NA supported by tourism** Jobs supported 2,113 2,384 NA NA by tourism** Convention and 51 Sport Grants administered

* 2006 was first full-year of operation for Tourist Information Centre at the John C. Munro Hamilton International Airport ** Source: “Statistics Canada Regional Tourism Profile, Census Division 25, Hamilton-Wentworth Regional Municipality”

SUBJECT: Tourism Hamilton 2006 Annual Report (PED07200) (City Wide) - Page 4 of 6

2006 Annual Report Highlights:

Tourism Hamilton’s 2006 Annual Report is attached as Appendix “A” to Report PED07200. Highlights included:

Sport Events and Conventions:

• 2006 Canadian Open Golf Championship: September 4-10, 2006. The event was hosted at the Hamilton Golf and Country Club. Over 100,000 spectators attended the tournament; over 1,200 volunteers were engaged and hotel room materialization in Hamilton for the event was 1,185 rooms. The event generated over $1.6 million in print media value for Hamilton (September 8-11). • Skate Canada hosted the Canadian Synchronized Skating Championship in Hamilton in February 2006. Hotel room materialization in Hamilton for the event was 1,936 rooms. • North American Kon Kani Association: June 30-July 4, 2006. Hotel room materialization in Hamilton was 1,609 rooms.

Visitor Services:

• The new Tourist Information Centre at the John C. Munro Hamilton International Airport served 26,794 visitors in its first full year of operation. • The downtown Tourist Information Centre experienced a 15% increase in visitation. • Tourism Hamilton’s web site experienced a 21% increase in “unique visitors”. • New web site was launched in December, 2006 providing a more comprehensive web site for local tourism businesses and visitors searching for information on Hamilton.

Events:

• Over 100 representatives from local tourism businesses attended Tourism Hamilton’s annual Tourism Summit in November. • Over 350 people attended the 7th Annual Tourism Awards in 2006.

Product Development:

In the fall of 2006, the Courtyard by Marriott opened on Upper James, providing more upscale rooms and additional room inventory for the Hamilton market. Also in the fall, United Kingdom-based, Flyglobespan, announced that it would be operating daily flights from 13 UK destinations in the summer of 2007 into the John C. Munro Hamilton International Airport. This would mark the first time in 20 years that there would be direct air-access from Hamilton to the UK market. The Hamilton Waterfront Trust operated a new trolley system along the west harbour trails, providing a popular way for visitors and Hamiltonians to experience Hamilton’s waterfront.

SUBJECT: Tourism Hamilton 2006 Annual Report (PED07200) (City Wide) - Page 5 of 6

ANALYSIS/RATIONALE:

N/A

ALTERNATIVES FOR CONSIDERATION:

N/A

FINANCIAL/STAFFING/LEGAL IMPLICATIONS:

Financial:

The Audited Financial Statements for Tourism Hamilton Incorporated are attached as Appendix “B” to Report PED07200.

Staffing – N/A

Legal – N/A

POLICIES AFFECTING PROPOSAL:

N/A

RELEVANT CONSULTATION:

Tourism Hamilton Board of Directors

CITY STRATEGIC COMMITMENT:

By evaluating the “Triple Bottom Line”, (community, environment, economic implications) we can make choices that create value across all three bottom lines, moving us closer to our vision for a sustainable community, and Provincial interests.

Community Well-Being is enhanced. ; Yes No

Tourism provides the community with the opportunity to showcase itself on a provincial, national and international stage, welcoming visitors from across the country and around the world. This fosters a greater sense of self awareness and confidence of the community.

Environmental Well-Being is enhanced. ; Yes No

Tourism is a renewable industry. Through tourism development and promotion, visitors experience Hamilton’s outdoor and natural tourism products, ranging from the Niagara Escarpment, farms, Royal Botanical Gardens, conservation areas, waterfront, harbour, lake, parks, trails and waterfalls.

SUBJECT: Tourism Hamilton 2006 Annual Report (PED07200) (City Wide) - Page 6 of 6

Economic Well-Being is enhanced. ; Yes No

Tourism provides an annual economic impact to Hamilton of approximately $132 million and employs over 2,300 people in tourism-related jobs. Visitors bring new dollars to the community, providing a positive economic benefit.

Does the option you are recommending create value across all three bottom lines? ; Yes No

Do the options you are recommending make Hamilton a City of choice for high performance public servants? Yes No

N/A

:da Attachs. (2)

Appendix A to Report PED07200 – Page 1 of 6 tourism 2006 hamilton Annual Report

Tourism Hamilton Board of Directors Message from the President (current) Sue Vattay n 2006, Tourism Hamilton steadily worked Courtyard by Marriott President hotel lobby Tourism Services hand-in-hand with the local tourism industry and affiliated destination marketing organiza- Mark Farrugia I 1st Vice-President tions to raise Hamilton’s profile as a tourist des- conferences. Food and Beverage tination. I am proud of the work that your Board On the leisure Joan Balinson of Directors undertook in 2006, including devel- marketing side, 2nd Vice-President oping communications strategies to connect Tourism Hamilton Events and Conferences with representatives of their respective sectors. launched a new Larissa Ciupka The Board reviewed the work of Tourism website to help Treasurer Hamilton’s first four years of operation, and began visitors at all Arts and Culture to contemplate future needs of tourism stakehold- stages of their Carolyn Puddicombe ers in Hamilton. To that end, trip-planning, from Secretary Agri-Tourism Tourism Hamilton underwent browsing to book- a staff restructuring to embrace ing, with content that Mayor Fred Eisenberger trends in the tourism market- is dynamic, enticing place and address key market- and practical. The launch Councillor ing opportunities. is one of many techniques still Dave Mitchell Rural Ward Front and centre, over to come in an effort to boost Hamilton’s online 112,000 spectators descended identity – a renewed focus for the organization. Councillor Sue Vattay Terry Whitehead on the illustrious Hamilton Other exciting developments that took place Urban Ward Golf and Country Club in September for the in 2006 included the fall opening of the Courtyard by Marriott Hotel. Located on the Ward Dilse 2006 Canadian Open Golf Championship. Sport/Recreation Tourism Hamilton worked closely with the mountain, the propery boasts 136 beautifully- Royal Canadian Golf Association to coordinate appointed guest rooms. In addition, Flyglobespan Joumana Ghandour Accommodations the City’s sponsorship of the event, including – a low cost airline in the United Kingdom – a familiarization tour and a spectator tent. announced they will be providing daily flights John Gibson Transportation Other major sports events hosted locally from Hamilton International Airport to over ten in 2006 included the Actifest Ontario Senior UK and Ireland destinations to start in May 2007. Robin Hill Travel Trade Summer Games, CIS Men’s Volleyball To celebrate the industry’s achievements and Championships and Canadian National chart our course throughout 2006, Tourism Heather McClellan Labour Synchronized Figure Skating Championships. Hamilton met formally with partners at events Pursuing and confirming these sports events such as the 8th Annual Tourism Hamilton Alice Willems Attractions are among the objectives of Tourism Hamilton’s Awards, Spring Highlights Networking Session Sport Tourism Action Plan. The plan’s imple- and Fall Tourism Summit. EX-OFFICIO mentation began in 2006 with the addition of Sincere thanks to an enthusiastic Board of Steve Miazga a second Sport Tourism Coordinator. Directors and the Tourism Hamilton staff team Hamilton Conservation Planning also began in 2006 for the 2007 who continue to move the organization forward Authority Canadian Society of Association Executives and advocate on behalf of our local tourism Bill Fenwick National Conference and Showcase to ensure industry. Culture and Recreation, City of Hamilton Hamilton shines. The October event will bring over 500 delegates including key not-for-profit Sue Vattay Duncan Gillespie HECFI decision makers who are often charged with President selecting host cities for annual tradeshows and Tourism Hamilton Board of Directors Neil Everson Economic Development Department, City of Hamilton Tracey Desjardins Ontario Ministry tourismhamilton.com of Tourism 905-546-2666 • 34 James St. S., Hamilton, Ontario L8P 2X8 Appendix A to Report PED07200 – Page 2 of 6 Marketing, Media Relations and Visitor Services

ligning Tourism Hamilton’s consumer marketing and visitor A services tactics with the organization’s restructuring priorities sparked a shift in strategy. This included a renewed focus towards e-marketing and travel media relations. When effective, electronic communications are immediate, targeted, inex- pensive and quantifiable. Consequently, Tourism Hamilton placed more emphasis on e-marketing rather than traditional off-line marketing activities. Tourism Hamilton’s ability to Homepage of tourismhamilton.com proactively reach out and tell our story to local and national newspapers, television and radio stations and news Downtown Hamilton Ambassadors and wire services provides an opportunity to increase the city’s appeal as Tourist Information Centres: down- a destination. town at the Piggott Building, the John C. Munro Hamilton International Tactics Airport and at Flamborough’s In December, Tourism Hamilton Clappison’s Corners (seasonal). The re-launched www.tourismhamilton.com, centres are staffed by the volunteer implementing recommendations from Lady Hamilton Club and summer the Web and E-Communications travel counselors. Strategy. These include more visual Service Canada funded a pilot proj- enhancements, engaging content, ect for the first year of operation for newsletter registration, enhanced the Tourist Information Centre located online advertising, search word opti- at the airport. The results of the pilot mization and dynamic features. project have led to Tourism Hamilton To continue leveraging the impact and Hamilton International working Experience Hamilton Tourist Guide of hosting the 2005 Travel Media together on enhanced customer service Association of Canada Conference and revenue generation at the centre. & AGM – including unprecedented The organization also administered media coverage and newsroom aware- the Downtown Hamilton Ambassador ness of Hamilton as a tourist destina- program, sending eight summer stu- tion – Tourism Hamilton attended a dents throughout the downtown core series of media marketplaces. Among and to special events across the city them was the Canadian Tourism to welcome and inform visitors of the Commission’s Go Media Canada Hamilton’s tourism offerings. Marketplace, the Society of American Travel Writers 2006 Conference and Results select stops of the premier Canada Hamilton’s enhanced media reach Media Partners tour. sparked an increasing number of Tourism Hamilton also produced third party endorsements reaching the organization’s and city’s core millions of travelers. tourism marketing brochure: the 2006-2007 Experience Hamilton Visitors Serviced in 2006 Tourist Guide. Over 150,000 were Unique visitors to Website 135,193 A CP story by Barbara Ramsay Orr distributed to Ontario Tourism In-person visits to Tourist reached over 300,000 readers Information Centres and key geo- Information Centres 35,788 graphic markets. Additionally, the Phone calls to toll-free guide is utilized in other markets number 1-800-263-8590 5,923 as a general destination selling tool. Tourism Hamilton operated three Total consumer contacts 176,904 Appendix A to Report PED07200 – Page 3 of 6 Sport Tourism

t was a year of transition for the local, provincial and national sport Sport Tourism portfolio within organizations. ITourism Hamilton, and as is often There were a number of high the case, with transition comes profile sporting events hosted in growth and opportunity. In 2006, Hamilton in 2006 such as the Sport Tourism emerged as a strong Skate Canada Synchronized Skating stand-alone market segment. Championships, CIS Men’s Volleyball Throughout the year there were Championship, and the Volleyball four key accomplishments for Sport Canada Canadian Open. Hamilton also Tourism: office staff restructuring, successfully hosted the 2006 Ontario establishing the Sport Tourism Advisory Senior Summer Games – ActiFest in Committee, hiring of a second Sport August where 1600 seniors from across Tourism Coordinator and completing the province enjoyed Hamilton’s hospi- Sport Tourism the majority of The Sport Tourism tality while competing for the gold in a promotional piece Action Plan’s Year 1 deliverables. wide variety of disciplines. These achievements effectively Our banner event for 2006, the Results position Tourism Hamilton and the Canadian Open Golf Championship, • 55 sport events/conferences were local industry to capitalize on the saw a city team come together and serviced (26 community, 11 provin- rapid growth and heightened level deliver a sporting event that was cial, 14 national and 4 international) of sophistication of the sport tourism extremely well received by over • Bids were developed and won for industry. 100,000 visitors to our city. the 2007 Rowing Canada Annual General Meeting, 2007 World Baton Twirling Championships, 2007 Canadian Yachting Championships, and the 2007 Ontario Soccer Association Annual General Meeting (the first time this event will be held outside of Toronto in over 100 years). • Bids were submitted for the 2008 AthletesCAN Forum, 2010 Canadian Sport Leadership Conference, and the 2010 Canadian Society for Exercise Physiology Conference • 32 Sport Event grants were processed resulting in $32,383 in funding to sport event organizers (which represented 67% of the total 2006 Canadian Open Golf Championship at the Hamilton Golf and Country Club grant monies given out in 2006). Tactics These events, along with the Bidding and servicing of sport numerous other sport events hosted events and sport conferences are the throughout the year, helped to build anchor activities for the team, however, our reputation as a premier sport there are a number of other key initia- event destination. tives which help to further the Sport Servicing was brought to the fore- Tourism Action Plan. front in 2006. In anticipation of host- Some of these include networking ing the 2007 Tim Hortons Brier, a with surrounding municipalities, par- team was dedicated to promoting the ticipating as a sponsor and marketplace Hamilton event in Regina in 2006. buyer in the Canadian Sport Tourism In addition, awareness building was Alliance Congress, hosting familiariza- heightened at the CANUSA Games in tion tours, attending local, provincial Flint, Michigan in preparation for host- and national sport events, and develop- ing the 50th Anniversary CANUSA ing and fostering relationships with Games in Hamilton in August 2007. Opening Ceremonies for ActiFest 2006 Appendix A to Report PED07200 – Page 4 of 6 Meetings and Conventions

he meetings and conventions Important partnerships with market represents tremendous Mohawk College and McMaster Topportunity for business and University continued to grow and economic development for the city. annual tradeshows at both properties Although this market is smaller than took place with Hamilton’s hospitality the leisure market, the yield is more partners. As well, Tourism Hamilton significant due to the spending trends continued to partner with the of conference delegates. Canadian Tourism Commission and Conference hosting also encour- the Ontario Tourism Marketing ages return visits, spurring future Partnership Corporation. economic growth. Tourism Hamilton Local ambassadors continued to be works closely with the organizers to cultivated in 2006. Tourism Hamilton’s ensure that business opportunities Ambassador Recognition Program rec- are maximized for Hamilton’s tourism ognized over 70 ambassadors – very industry partners.

Within 2 Hours meeting planners resource guide ad

CSAE Conference brochure

important Hamilton cheerleaders who influence organizations, causes and associations to host their next conven- Tactics tion locally. While bidding and servicing are core Results functions, a number of additional activ- • 74 meetings and conventions were ities support the meetings and conven- serviced (37 provincial, 26 national Team Hamilton prospecting and tions initiatives. They included sponsor- and 11 international) attendance building at the CSAE ing Canadian Society of Association • 26 bids were prepared for meetings Conference marketplace in Edmonton Executives events given Hamilton is and conventions, of which 15 were hosting the prestigious organization’s successful. Successful bids included: conference in October 2007. – 2007 Ontario Public Buyers A successful familiarization tour Association Conference was hosted in conjunction with the – 2008 Boys & Girls Club of Canadian Open Golf Championship, Canada National Conference with guests that included represent- – 2008 Rotary District 7090 Annual atives from associations, sporting Conference events and the media. A highlight in – 2009 Latvian Song Festival 2006 saw Hamilton hosting the popu- – 2009 Chemical Institute lar televised CBC Canadian Antiques Conference Roadshow. In 2006, Tourism Hamilton continued Guests of the Canadian Open familiar- As well as conducting site visits, to provide funding assistance to meet- ization tour received star treatment in staff were involved with attendance and ings and conventions held in Hamilton: a reception on the stage of Hamilton conference building at local, provincial • 19 meetings and conventions grants Place and national meetings and conventions were processed resulting in $20,835 including the Canadian Country Music in funding to meetings and conven- Awards in Saint John, NB and the Boys tions organizers (which represents and Girls Club of Canada National 33% of the total grant monies given Conference in Halifax, NS. out in 2006). Appendix A to Report PED07200 – Page 5 of 6 Travel Trade Tourism Hamilton Team

ourism Hamilton’s travel trade Tourism Hamilton attended one Administrative: program promotes the city’s group leader show in 2006, partici- David Adames Ttourism products and experi- pating in the Olympic/Snyder Travel Executive Director ences to tour operators, travel agents Showcase. This key Western New 905-546-4132 and group leaders. In 2006, the York tour operator is a new company, [email protected] program began to transition from an emerging from four former tour oper- emphasis on group travel to focus on ators that included Western Coach Kathy Dunn fully independent travel. USA, Kemps Bus Lines, We Care Tourism Events Key memberships associated with Group and Central New York Coach Coordinator/ the travel trade market were main- USA. The Group Leader show in Administration tained and leveraged including the November was the launch of this new 905-546-2424 Ext. 5584 National Tour Association, American tour operation so Tourism Hamilton’s [email protected] Bus Association, Ontario Motorcoach participation was important to ensure Sales and Marketing: Associaton, Tourism Toronto, ongoing group business for tourism Attractions Ontario and Team Canada. industry partners. Trish Chant-Sehl Tourism Hamilton worked with Sport Tourism Tactics representatives of Westjet in 2006 as Coordinator Tourism Hamilton attended three the airline launched its new web- 905-546-2424 Ext. 5499 key tour operator marketplaces in based consumer vacation package [email protected] 2006: National Tour Association, operation: WestJet Vacations. Barbara Eastman-Lewin American Bus Association and the Tourism Hamilton also hosted a Convention Sales Ontario Motorcoach Association familiarization tour for WestJet’s Coordinator Marketplace. At each marketplace, product buyer showcasing Hamilton’s 905-546-2424 Ext. 5557 Hamilton’s tourism product and latest accommodation properties and attrac- [email protected] information was promoted to tour tions that are included in a Hamilton operators. package. Ted Flett Marketing and Media Relations Coordinator 905-546-2424 Ext. 5585 [email protected]

Sharon Murphy Sport Tourism Coordinator 905-546-2424 Ext. 5770 [email protected]

Visitor Services: Maria Fortunato Group Services Coordinator 905-546-2424 Ext. 2616 [email protected]

Deborah Simon Travel Services Coordinator 905-546-2424 Ext. 5771 [email protected]

Mira Todorovic Travel Services Coordinator 905-546-2424 Ext. 5465 Hamilton’s package page on the WestJet Vacations website [email protected] Appendix A to Report PED07200 – Page 6 of 6 Audited Financial Statements

Tourism Hamilton’s Tourism Hamilton Inc. Statement of Financial Position Key Partnerships and Memberships Year Ended December 31, 2006 2006 2005 • American Bus Association Assets • Association of Convention Accounts receivable $ 170,608 $ 102,571 Operations Management Due from City of Hamilton 354,540 525,936 • Attractions Ontario Prepaid expenses - 2,409 • Bi-National Tourism Alliance $ 525,148 $ 630,916 • Canadian Sport Tourism Alliance • Canadian Society of Association Liabilities Executives Accounts payable and accrued liabilities $ 161,267 $ 86,802 • Canadian Tourism Commission Deferred revenues (Note 4) 269,490 440,005 • Economic Development Council Accrued employee benefits (Note 7) 94,391 104,109 of Ontario 525,148 630,916 • Festivals and Events Ontario • International Association of Net assets Convention & Visitor Bureaux Unrestricted net assets - - • Meeting Planners International $ 525,148 $ 630,916 • National Tour Association • Ontario Ministry of Health Statement of Revenues and Expenditures Promotion and Changes in Net Assets • Ontario Ministry of Tourism • Ontario Motorcoach Association Year Ended December 31, 2006 • Ontario Tourism Marketing Budget Actual Actual Partnership Corporation 2006 2006 2005 • Society of American Travel Writers Revenues • Tourism Toronto Partnership contributions $ 417,580 $ 493,593 $ 591,377 Tourism Awards & Summit 27,000 33,062 8,215 • Travel Industry Association Federal grants - 5,461 10,658 of Canada Provincial grants 10,550 172,209 211,660 • Travel Media Association Interest earned on reserve - 18,081 12,851 of Canada City of Hamilton contribution (Note 6) 1,206,140 1,330,344 1,577,411

Total revenue 1,661,270 2,052,750 2,412,172 Tourism Hamilton Expenditures Employee related costs 960,400 1,111,605 899,030 34 James Street South Hamilton, ON L8P 2X8 Material and supplies 34,440 47,595 69,258 Telephone: 905-546-2666 Buildings and grounds 75,130 77,186 74,424 or 1-800-263-8590 Program costs 569,550 788,246 1,272,932 www.tourismhamilton.com Visitor centre set-up costs - 573 12,544 Administrative costs 21,750 27,545 83,984

Total expenditures 1,661,270 2,052,750 2,412,172

Tourism Hamilton is a public-private Excess of revenues over expenditures $ - $ - $ - partnership with the City of Hamilton. It has been established with a 19-member Board of Directors to be the tourism marketing agency for the City of Hamilton. Prepared by Executive Editor: David Adames, Executive Director Email: [email protected] Editor: Ted Flett, Marketing and Media Relations Coordinator Email: [email protected]

PRINTED IN CANADA 06/07 APPENDIX B to Report PED07200 Page 1 of 9 Tourism Hamilton Inc. Financial Statements December 31, 2006

APPENDIX B to Report PED07200 Page 2 of 9 Contents

Page

Auditors' Report 1

Statement of Financial Activities 2

Statement of Financial Position 3

Notes to the Financial Statements 4-7

APPENDIX B to Report PED07200 Page 3 of 9

Grant Thornton LLP Chartered Accountants Management Consultants

Auditors' Report

To the Directors of Tourism Hamilton Inc.

We have audited the statement of financial position of Tourism Hamilton Inc. as at December 31, 2006 and the statement of financial activities for the year then ended. These financial statements are the responsibility of the organization's directors. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation.

In our opinion, these financial statements present fairly, in all material respects, the financial position of Tourism Hamilton Inc. as at December 31, 2006 and the results of operations for the year then ended in accordance with Canadian generally accepted accounting principles.

Budget figures are provided for comparative purposes and have not been subject to audit procedures. Accordingly, we do not express any opinion regarding the budget figures.

Hamilton, Ontario Grant Thornton LLP May 9, 2007 Chartered Accountants Licensed Public Accountants

Standard Life Centre 120 King Street West Suite 1040 Hamilton, Ontario L8P 4V2 T (905)-525-1930 F (905)-527-4413 E [email protected] W www.GrantThornton.ca

Canadian Member of Grant Thornton International

Tourism Hamilton Inc. APPENDIX B to Report PED07200 Statement of Financial Activities Page 4 of 9 Year Ended December 31

Budget Actual Actual 2006 2006 2005

Revenues Partnership contributions $ 417,580 $ 493,593 $ 591,377 Tourism Awards & Summit 27,000 33,062 8,215 Federal grants - 5,461 10,658 Provincial grants 10,550 172,209 211,660 Interest earned on reserve - 18,081 12,851 City of Hamilton contribution (Note 6) 1,206,140 1,330,344 1,577,411

Total revenue 1,661,270 2,052,750 2,412,172

Expenditures Employee related costs 960,400 1,111,605 899,030 Material and supplies 34,440 47,595 69,258 Buildings and grounds 75,130 77,186 74,424 Program costs 569,550 788,246 1,272,932 Visitor centre set-up costs - 573 12,544 Administrative costs 21,750 27,545 83,984

Total expenditures 1,661,270 2,052,750 2,412,172

Excess of revenues over expenditures $ - $ - $ -

See accompanying notes to the financial statements.

Tourism Hamilton Inc. APPENDIX B to Report PED07200 Statement of Financial Position Page 5 of 9 Year Ended December 31 2006 2005

Assets Accounts receivable $ 170,608 $ 102,571 Due from City of Hamilton 354,540 525,936 Prepaid expenses - 2,409

$ 525,148 $ 630,916

Liabilities Accounts payable and accrued liabilities $ 161,267 $ 86,802 Deferred revenues (Note 4) 269,490 440,005 Accrued employee benefits (Note 7) 94,391 104,109

525,148 630,916

Net assets Unrestricted net assets - -

$ 525,148 $ 630,916

On behalf of the Board

Director Director

See accompanying notes to the financial statements.

Tourism Hamilton Inc. APPENDIX B to Report PED07200 Notes to the Financial Statements Page 6 of 9 December 31, 2006

1. Nature of operations

Tourism Hamilton Inc. is a not- for-profit organization, incorporated on June 26, 2002 by the City of Hamilton. It was incorporated without share capital under the Ontario Corporations Act to conduct, promote and develop tourism in the City of Hamilton and to act as a Tourism Board to the City of Hamilton. Its operations commenced January 1, 2002, prior to incorporation.

2. Summary of significant accounting policies

The financial statements of Tourism Hamilton Inc. are prepared by management in accordance with generally accepted accounting principles for not-for-profit organizations, as recommended by the Canadian Institute of Chartered Accountants.

Significant aspects of the accounting policies adopted by the corporation are as follows:

Revenue recognition The organization follows the deferral method of accounting for contributions. Restricted contributions are recognized as revenues in the year in which the related expenses are made. Unrestricted contributions are recognized as revenues when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Endowment contributions are recognized as a direct increase in net assets.

Expenditure recognition Expenditures are recognized in the period goods and services are acquired and a liability is incurred or transfers are due.

Capital assets The historical cost and accumulated amortization of capital assets are not recorded. Purchases of capital assets are charged directly to operations in the year in which the expenditures occur.

3. Use of estimates

The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of revenues and expenditures during the reporting period. Actual results may vary from the current estimates. These estimates are reviewed periodically and, as adjustments become necessary, they are reported in earnings in the periods in which they become known.

Tourism Hamilton Inc. APPENDIX B to Report PED07200 Notes to the Financial Statements Page 7 of 9 December 31, 2006

4. Commitments and grant agreements

The Ontario Ministry of Tourism and Recreation (Ministry) has entered into a funding agreement with Tourism Hamilton Inc. The agreement states that the Ministry will provide a total grant of $310,000 payable over two years to be matched by private contributions. Tourism Hamilton Inc.’s commitment is to contribute $150,000 over two years. A payment of $155,000 was received during fiscal 2004 from the Ministry towards the project and a further $155,000 was received during fiscal 2005. Tourism Hamilton Inc. made a payment of $75,000 in each of the two years.

Included in deferred revenues is an amount of $259,490 representing funding received during the year in excess of expenditures made with respect to the project above.

5. Due from the City of Hamilton

Tourism Hamilton Inc.'s expenditures and revenues are paid and received through the City of Hamilton's bank accounts. Accounts payable, accrued liabilities and accounts receivable relating to the Corporation are recorded in the City of Hamilton's statement of financial position. At December 31, 2006 the amount due from the City of Hamilton is $354,540.

6. Funding from the City of Hamilton

Tourism Hamilton Inc., in terms of an agreement with the City of Hamilton, receives funding from the City in the form of an appropriation from the City's tourism budget. The funding is at the City's sole discretion and is used for Tourism Hamilton Inc.’s operating and capital purposes. In 2006, $1,330,344 (2005: $1,577,411) was received from the City of Hamilton; this amount includes $31,152 transferred from the City of Hamilton’s reserve fund in connection with the bid for the Commonwealth Games, less $278,592 in unspent Destination Marketing Fees transferred to the City of Hamilton’s reserves for future use. The full amount has been reported as grant revenue in the Statement of Financial Activities.

7. Employee Benefits and Other Obligations

The Corporation provides certain employee benefits that require funding in future periods. An estimate of these liabilities for employees who are under the direct employment of Tourism Hamilton Inc. and a portion of liabilities for City of Hamilton employees, part of whose time is allocated to Tourism Hamilton Inc., has been recorded in the Balance Sheet.

The City of Hamilton, through which these benefits will be paid, has established reserves to provide for some of these liabilities. These financial statements include only Tourism Hamilton’s estimated obligation as a liability and as an amount due to be recovered in the future from the City of Hamilton. The amounts are summarized as follows:

Tourism Hamilton Inc. APPENDIX B to Report PED07200 Notes to the Financial Statements Page 8 of 9 December 31, 2006

7. Employee benefits and other obligations (continued)

2006 Vacation pay liabilities $ 19,780 Retirement benefits 6,325 Long term disability 9,610 Workplace Safety and Insurance 58,676 $ 94,391 (a) Liability for Accrued Vacation

The Corporation of the City of Hamilton (the “City”) is liable for vacation days earned by its employees as at December 31, 2006 but not taken until a later date.

(b) Liability for Retirement Benefits

The City provides certain health, dental and life insurance benefits between the time an employee retires under the Ontario Municipal Employees Retirement System (OMERS) or the normal retirement age and up to the age of 65 years. Tourism Hamilton Inc.'s estimated liability as at December 31, 2006 as determined by an apportionment of the City's incremental liability since December 31, 2001, is $6,325. The apportionment is based on the percentage that Tourism Hamilton Inc.’s wages and salaries comprise of those of the City as a whole.

The City provides benefits in the event of total disability for certain employee group. Tourism Hamilton Inc.’s estimated liability as at December 31, 2006 as determined by an apportionment of the City’s incremental liability since December 31, 2003, is $9,610. The apportionment is based on the percentage that Tourism Hamilton Inc.’s wages and salaries comprise of those of the City as a whole.

(d) Liability for Workplace Safety and Insurance

The City is liable for compensation related to workplace injuries as stipulated by the Workplace Safety and Insurance Board (WSIB) Act. The unfunded liability, managed by the City of Hamilton, was determined by the Workplace Safety and Insurance Board to be $36,849,142 (2005 - $36,349,143). Tourism Hamilton Inc.’s estimated liability as at December 31, 2006 as determined by an apportionment of the City's incremental liability since December 31, 2001 is $58,676. The apportionment is based on the percentage that Tourism Hamilton's wages and salaries comprise of those of the City as a whole.

Tourism Hamilton Inc. APPENDIX B to Report PED07200 Notes to the Financial Statements Page 9 of 9 December 31, 2006

8. Statement of Changes in Financial Position

A separate statement of changes in financial position is not presented because information about operating activities is readily apparent from the other financial statements.

9. Budget Figures

The budget figures reflected in the Statement of Revenues and Expenditures were approved on April 12, 2006 as part of the City of Hamilton's budget.

10. Income taxes

Section 150(1)(a) of the Income Tax Act requires all corporations to file an annual corporation income tax return even though non-profit corporations are exempt from tax under Section 149(1)(l) of the Income Tax Act.

11. Comparative figures

Certain of prior year figures presented for comparative purposes have been restated to conform to the financial statement presentation adopted for 2006.