TOURISM INDUSTRY ASSOCIATION of
Position Paper on
The Implementation of a Regional
Structure for
Destination Management &
Marketing
Introduction
In
his report Discovering
of
regions to better coordinate tourism marketing and management across the
province.
Each region should work toward creating a unique brand and a stellar
experience
within a provincial brand. There should be one Destination Marketing
and
Management Organization (DMMO) for each region.”
This recommendation has been the most
controversial with the tourism industry
and has
elicited the most comments and concerns. This paper will lay out a
number of
principles that TIAO feels should be adhered to in implementing a
regional
structure. This paper is based on input and discussions with the TIAO
Board
of Directors as well as discussions and feedback with TIAO members.
Mr. Sorbara also recommended enacting
legislation to regularize the collection
and use
of Destination Marketing Fees. The announcement in the 2009
budget of
the intent to implement a harmonized sales tax in
raised
questions regarding the future of the DMF and the industry’s access to the
3% tax room previously
available.
Encouraging Markets
A considerable part of
our work focused on existing and best-prospect markets. Strengthening tourism
is
really
about identifying and developing new markets while maintaining the capacity of
existing ones. It is
clear,
however, that there is no single
regional
markets, each with its own strengths and challenges. The
relies
heavily on
Muskoka will draw
tourists from across the continent and beyond.
Our report includes
recommendations for enhancing the ability of the province and its tourism
regions
to
conduct better research and respond more quickly to the ever-changing trends in
the global tourism
market.
Even so, it is clear today that the best-prospect markets, such as
as
well as large
tomorrow.
To help encourage that growth, we’ll need more open skies agreements to be
signed by the
federal
government.
Destination Marketing
Fees
The report also
proposes that legislation be introduced to bring statutory recognition and
standardization
to
the wide variety of Destination Marketing Fees (DMFs) now voluntarily levied on
accommodations
across
much of the province. A majority of the hotel rooms in
virtually
all of our competing jurisdictions. The DMF has had a very positive impact on
the industry in areas
where
it is used. In
rates
have risen with each year as a result of significantly increased marketing.
We propose that, in
each new tourism region that adopts a DMF, all tourism accommodations be
required
to
levy the fee. The DMF proceeds would become an annual source of support for
regional Destination
Marketing
and Management Organizations. Dollars would flow
directly to the industry, not to any
level
of government. Such models are now common across the continent. We estimate
that, when fully
implemented,
this initiative could result in almost $100 million in much-needed annual
marketing support
for
tourism regions. Sustainable funding for marketing will have a significant
impact on tourism.
Summary
TIAO feels as a minimum there are four key elements
necessary for the regions
to
be successful:
! The regional organizations must be industry-driven
autonomous of
government.
! All of the 3% additional tax that will be collected
on accommodation
beginning
development.
! The OTMPC budget must remain intact rather than
funded from the 3% of
HST.
! Existing DMO’s must receive sufficient funding from
the regional allocation
to
be able to continue their marketing and development activities. Funding
for
regional overhead costs must be minimized.
Website to Visit
www.tourismstudy.ca/en/report.php
This document distributed to
CABA members, June, 2009