Destination BC

A New Tourism Marketing Crown Corporation

Competing Globally

• Growing markets in Asia • 25 years ago: 10 countries

competing in the global tourism market

Today: 200 countries competing

We must adapt our approach to a more competitive global market.

2

An exceptional mix and diversity of places, people and experiences within awe inspiring natural surroundings

Promise: Industry Driven/ Formula Funded

• Premier Clark promised industry would lead tourism marketing and that funding would be predictable.

• That promise was reiterated in Canada Starts Here: The BC Jobs Plan.

• And it was confirmed in Gaining The Edge, our tourism sector strategy

3

Your Industry Driven PDMO

A Structure Designed BY You TIABC task force pressed government for a PDMO

Jointly designed the model we’re implementing

A Structure Designed FOR You TIABC task force recognized the need for accountability and

responsiveness to tourism industry needs; and,

Accountability to taxpayers

4

Structure

• Destination BC Crown Corporation has already been established

• To be Governed by Board of Directors – 9 private sector Directors, skills based Board

– Appointed by government based on input from industry

– A minority may have current involvement in the tourism sector

– Responsible for all fiduciary matters

• Operations of Destination BC will begin April 1, 2013 – with all branding

• Government will continue responsibility for tourism policy

5

Market B.C. as a tourism destination

Support and assist marketing activities of industry

Provide investment to RDMOs and other third parties to market tourism related to their regions and products

Conduct marketing related research

Destination BC Mandate: Marketing

6

Provide industry leadership in marketing, product development and innovation

Promote training and development related to tourism

Enhance public awareness of tourism’s economic value and impact

Recommend ways to enhance B.C.’s tourism marketing

system

Destination BC Mandate: Leadership

7

Greater Accountability to Tourism Stakeholders

Tourism Marketing Committee

• Up to 3 nominated by each of the regional tourism destination marketing entities

• Input to CEO and Board on marketing strategies and tourism performance indicators

• Mandatory to ensure regional input

Performance expectations in formal, openly available contracts with RDMOs or others funded

Joint Destination BC/private sector campaigns to maximize marketing impact through leveraged & joint funding

8

Greater accountability to taxpayers

Operational performance targets

Government will provide mandate and direction through a “Government Letter of Expectations”

Government guidelines for executive compensation, Board remuneration etc. will apply as with other crown corporations

9

Funding

• Current tourism budget and staff to be transferred to Destination BC April 1, 2013 ($48.87 million)

• Funding mechanism will be converted to a portion of annual sales tax to allow the PDMO to grow its budget based on superior tourism marketing

• Task Force pressed government for greater funding, but fiscal restraint requires initial funding to be equal to current funding

• Intent to introduce legislation in the spring sitting to enshrine Destination BC in law and enable the tax based funding model

10

Timeline

Now to March 31, 2013: Establish Destination BC Board Hire CEO Appoint Tourism Marketing Committee Develop first Service Plan

April 1, 2013: Destination BC assumes responsibility for

tourism marketing operations

11

Destination BC –

A Better Model

12

Industry Driven

Formula Funded

Designed by Industry for

Industry

What’s Different with Destination BC?

Greater Industry Engagement – Industry led Director selection – Tourism Marketing Committee: RDMO nominees ensure regional input

Leveraged Private Industry Funding – Maximize marketing impact through joint marketing campaigns

Performance Based Funding – Direct link between tax funding and organization’s performance

Transparency in Funding Contracts – Performance expectations transparent in contracts with those funded

Greater Accountability to Taxpayers

Operational performance targets and compensation guidelines

13

Roles Destination BC

• Marketing strategy and execution • Consumer websites • Sector marketing and development • Funding of RDMOs, communities, sector

projects, etc. • Manage brand • Travel Media • Travel Trade • Social Media • Research, performance measurement and

evaluation • Visitor Centres • Training (WorldHost) • British Columbia Magazine

Ministry of Jobs, Tourism and Skills Training – Tourism Policy • Address opportunities and policy issues

affecting tourism growth

• Work with other Ministries and governments

• Ensure that provincial decisions are informed by the needs of the tourism industry

• Support the Minister’s shareholder representative role (e.g., drafting Government Letters of Expectations, leading financial/performance meetings with Destination BC)

• Engage with the Minister’s Council on Tourism

14

Destination BC

A New Tourism Marketing Crown Corporation