Appendix "I" Muskoka Economic Strategy Phase 2: Strategic Action Plan Final Report s Submitted By: _ MALONE GIVEN g.PARSONS LTD. In Association With: The Centre for Spatial Economics (C4 SE) Funding Partnership: Canada FedNoI: September, 2009 Muskoka Economic Strategy Phase 2: Strategic Action Plan FINAL REPORT Submitted To: The District Municipality of Muskoka Planning & Economic Development Department 70 Pine Street Bracebridge, Ontario PIL IN3 [email protected] Submitted By: In Association With: Malone Given Parsons Ltd. Centre for Spatial Economics 140 Renfrew Drive, Suite 20 I IS Martin Street, Suite 203 Markham, Ontario Milton, Ontario L3R6B3 L9T 2RI Tel: (905) 513-0170 Tel: (905) 878-8292 Fax: (905) 513-0177 Fax: (905) 878-8502 [email protected] [email protected] September, 2009 07:1643 TABLE OF CONTENTS TABLE OF CONTENTS EXECUTIVE SUMMARY 1.0 INTRODUCTION ] ] .] Background ] ] .2 Objectives 2 ] .3 Study Process 3 ] .4 Strategic Action Plan Organization .4 2.0 PHASE 1: BACKGROUND REPORT SUMMARY 5 2.] Key Trends 5 2.2 Muskoka's Key Economic Sectors 7 2.3 Concluding Questions 9 3.0 ISSUES AND OPPORTUNITIES ] ] 3.] Sector-Wide Issues, Gaps and Opportunities ] ] 3.2 Sector-Specific Issues, Gaps and Opportunities ]4 3.2.] Natural Resources Sector 14 3.2.2 Manufacturing & Transportation Sector 15 3.2.3 Construction, Real Estate & Business Services Sector 17 3.2.4 Trade & Personal Services Sector 17 3.2.5 Public Sector ]8 3.2.6 Second Homes Sector 19 3.2.7 Information, Communications & Telecommunications (lCT) Sector .20 3.3 Tourism Sector 21 3.3.1 Muskoka Assessment Project Summary .21 3.3.2 Tourism Issues, Gaps and Opportunities .23 3.3.3 Resorts Issues, Gaps and Opportunities 25 4.0 A VISION AND STRATEGY FOR ECONOMIC DEVELOPMENT .29 4.1 Strategic Vision 29 4.2 Economic Strategy 30 4.3 Implementation 31 5.0 STRATEGIC ACTION PLAN 33 5.1 Role for the District of Muskoka .33 5.1.1 Sector-Wide Initiatives 36 5.1.2 Sector-Specific Initiatives .40 5.1.3 Tourism Initiatives 43 5.].4 Resorts Initiatives 44 5.2 Muskoka Official Plan Policy Directions .46 5.2.1 Sector-Wide Directions 46 5.2.2 Sector-Specific Directions 47 5.2.3 Tourism Directions 47 5.2.4 Resorts Directions 48 Malone Given Parsons Ltd. * Centre for Spatial Economics MUSKOKA ECONOMIC STRATEGY Phase 2: Strategic Action Plan 6.0 CONCLUSIONS 49 APPENDICES Appendix A - Sector and Stakeholder Consultation Session Notes Malone Given Parsons Ltd. * Centre for Spatial Economics ii EXECUTIVE SUMMARY EXECUTIVE The Muskoka Economic Strategy project was initiated to provide a new SUMMARY analysis and set of strategic directions to better foster economic and tourism growth in Muskoka. The previous economic development strategy was completed in 1983. Since then, the economic landscape across Canada has changed considerably. The manufacturing employment base has declined and employment in services, knowledge-based and creative industries has increased. This trend holds true for the District of Muskoka as well. Muskoka requires an innovative and responsive economic strategy that is relevant to the early part of the 21 st Century, builds on its assets, and does not compromise its environment and natural beauty. This Phase 2: Strategic Action Plan Report defines a set of actions and directions for implementation by the District to promote sustainable economic development. It has been completed concurrently with and complements the District Growth Strategy. The timing of completion of these studies, and action on their recommendations, should assist in positioning the community to maximize the potential benefits arising from its success in attracting the G8 Summit and the 20 I0 Ontario Winter Games to Muskoka. This Summary describes a working definition of a Vision for the District, and an Economic Strategy to attain the Vision and respond to the issues and opportunities identified through the Strategy study process. It concludes with highlights of the Strategic Action Plan for Muskoka. Vision The District's ongoing Official Plan Review process will address the challenge of defining an overall Vision for Muskoka, but it was thought helpful if some foundation ideas could be advanced through the Economic Strategy to initiate discussion. The Vision elements presented below reflect the consultants' interpretation of what seemed to be most important to stakeholders engaged through the consultation process. Muskoka will become a place which: ~ Seeks sustainable economic development that complements its natural setting and its caring community values; ~ Establishes the maintenance of its scenic beauty, its environmental quality and its ability to provide a healthy and fulfilling community for its citizens and visitors as its highest priorities; ~ Is renowned for its success in creativity, innovation and new business growth; ~ Welcomes residents and visitors from all points on the globe and all walks of life; Malone Given Parsons Ltd. • Centre for Spatial Economics MUSKOKA ECONOMIC STRATEGY Phase 2: Strategic Action Plan ~ Has a vibrant and diverse economy offering rewarding education, employment and entrepreneurial opportunities to all who seek them; and ~ Offers accessible housing and accommodations to its workers, residents and visitors. Economic Strategy In consideration of this Vision for Muskoka, and the opportunities to foster regional economic development identified in the study, the recommended economic strategy for Muskoka is to: ~ Fully engage with the tourism, seasonal and retirement sectors as Muskoka's core business; ~ Leverage Muskoka's assets, brand and market position to broaden the region's economic portfolio by building new activity, innovation and diversity in the "green", creative and other industries serving local and broader markets; ~ Build technology, institutional and labour force foundations adaptable to changing economic conditions and attractive to new businesses; and, ~ Reduce the hurdles that constrain labour availability and mobility; ~ All in a context of maintaining if not enhancing Muskoka's scenic beauty and environmental quality. Highlights of the The Strategic Action plan recommends initiatives that serve all economic Strategic Action sectors in the District, and others that target specific sectors. It also Plan identifies policy directions to consider in updating the District Official Plan. Highlights of each are summarized below: Sector Wide Initiatives • Expand the District Economic Development Function to enhance its ability to foster collaboration and drive research; • Consolidate services in support of small business into one "Muskoka Innovation and Growth Centre", augmented by a new "Innovation Enterprise Centre" to support business innovation and growth in the "green", Information, Communications and Technology (lCT) and other sectors; • Build "Investment" and "Succession" Networks linking capital sources with business owners. ii Malone Given Parsons Ltd. * Centre for Spatial Economics EXECUTIVE SUMMARY Sector-Specific Initiatives • Identify the participants in Muskoka's ICT, potential "green", professional services and culture clusters, identify gaps and flag them as business opportunities; • Continue to support the Muskoka Community Network's mapping atlas initiative, ensuring it incorporates data gathered through the Muskoka Assessment Project, and expanding it to include cultural heritage and planning elements; • Facilitate discussions with area municipalities to identify product areas and locations where distinct "centres of excellence" could be created; • Continue to support and expand opportunities at and near the Muskoka Airport; • Build upon the current post-secondary education presence with more programs and facilities; • Promote public understanding of the importance of tourism and cottaging, in part by developing a "Welcome to Muskoka" hospitality messaging and skills initiative prior to and continuing past the 08 summit; • Support efforts with the province to put in place and fund a Destination Marketing and Management Organization (DMMO) for the Muskoka area; • Recognize redevelopment of waterfront resort properties using the fractional ownership model as a reasonable means of enabling capital reinvestment in resort accommodations, with appropriate controls on density and maintenance of the commercial accommodations function. Augment the current understanding of fractional project and owner characteristics and behaviours with primary research; • Explore approaches to enabling small scale (e.g., 10 to 40 suites or cabins) eco-resort development in remote areas; • Encourage if not demand that large scale resort proposals incorporate staff housing. The Action Plan identifies performance indicators as tools for measuring the progress ofthe economic strategy. Malone Given Parsons Ltd. * Centre for Spatial Economics iii MUSKOKA ECONOMIC STRATEGY Phase 2: Strategic Action Plan This page is intentionally blank. iv Malone Given Parsons Ltd. * Centre for Spatial Economics 1.0 INTRODUCTION 1.0 INTRODUCTION The Muskoka Economic Strategy project was initiated to provide a new analysis and set of strategic directions to better foster sustainable economic and tourism growth in Muskoka. The previous economic development strategy was completed in 1983. Since then, the economic landscape across Canada has changed considerably. The manufacturing employment base has declined while employment in services, knowledge-based and creative industries has increased. This trend holds true for the District of Muskoka as well. Muskoka requires an innovative