Building the Tourism Recovery Plan

Building the Tourism Recovery Plan

COVID-19 Manitoba Tourism Impacts
         COVID is contained – pandemic                                            COVID is not contained – pandemic
         contained by summer                                                      contained by fall
         • 25% decrease (-$411 million) in                                        • 60% decrease (-$986 million) in
           tourism spending in 2020                                                 tourism spending in 2020
         • 3.6% decrease (-$59 million) in                                        • 19% decrease (-$312 million) in
           tourism spending in 2021                                                 tourism spending in 2021
         • 6,827 jobs lost                                                        • 11,633 jobs lost

Source: “COVID-19’s Impact on Canadian Tourism”, Tourism Economics, March 23, 2020 – Destination Canada

Industry Support & Funding Gaps
Many new announcements have been made by both the federal and provincial government. Details
are not yet available for some programs. Funding gaps remain for:
• Sole proprietorships
• Small business owners
• Indigenous tourism business

Challenges Expressed by Industry
• Many credit unions not yet able to process Canadian Emergency Business Account impacting
  small and rural business owners
• Many seasonal tourism businesses cannot apply for the Canadian Wage Subsidy Program since
  revenue loss between March 15 and June 6 must be provided.
• Canadian Emergency Response Benefit acting as disincentive for part-time and lower income
  workers to return to work
• Parks Canada closure decisions made nation-wide while situations vary province to province

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4

Building the Tourism Recovery Plan

              • Respond
                • Rebuild
                  • Restart

Phase 1: Respond
• Communicating with industry to understand their
  challenges
• Collecting and distributing data and analysis to
  help make decisions
• Ensuring the tourism infrastructure is preserved by
  advising governments about gaps in funding
  programs
• Pausing paid marketing programs to have more for
  recovery campaign
• Supporting the promotion of the provincial
  government’s stay at home message
• Exploring options to secure financial support from
  Western Diversification under the Tourism Alliance
  of Western Canada

Looking Forward: Two Scenarios
•   COVID-19 is contained
    • Summer season opens to domestic travel by July 1
    • Supply chain is mostly intact
    • Travellers are responsive to appropriately targeted
      marketing

•   COVID-19 is not contained
    • Physical distancing lasts until September
    • The supply chain is depleted
    • Access remains impaired
    • Travellers not responsive to marketing content of
      any kind

•   These scenarios do not affect the strategic approach

Manitoba domestic tourism can power a recovery, as 84% of the pre-pandemic spend was
  from domestic tourism, some of which can resume as public health restrictions are lifted.
               Partial Lift                                                        All restrictions lifted

                                                                                       Tentative                          Regularized
                HyperLocal to                                                                                            International
                                              Regional2               Inter-prov     International
                   Local1                                                                                                  (US Air /
                                                                                      (US Road) 3                       International)
Pre-pandemic
market size       $540.2M
$M 2017
                                              $417.5M                  $420.4M

                  $957.7M (58%)                                                     1.  Same day travel by Manitobans within Manitoba
                                       Intra-provincial travel                      2.  Overnight travel by Manitobans within Manitoba
                                                                                    3.  Estimated market size assuming all international travel to Manitoba by
                                                                                        auto are US road related.
                                $1.4B (84%)                                         Note: Data on US and International spending breakdowns by transportation
                                                    Domestic travel                 model is not available at the provincial level.

In-Province Campaign
•   Goal
    To increase tourism visitation and expenditures within
    Manitoba by creating high quality content and
    advertising that promotes bookable experiences and
    attractions, adjusting as the supply of available
    experiences increases.

•   Theme
    Tied to Manitoba, Canada’s Heart…Beats brand,
    promotes pride and motivates Manitobans to travel.

Campaign Creative
Home is Where the Heart Is
•   Showcasing the experiences that make us
    love Manitoba and the people we love to
    share them with

•   Manitobans are encouraged to
    show Manitoba some love

Campaign Tactics
•   Tactics will allow for speed of execution and safe production
•   Ability to pivot quickly should health regulations change
•   Once travel restrictions are removed, message will be modified
    to encourage “close to home” travel (ON and SK)
•   Expand the campaign internationally once safe to do
•   Potential for international travel not to resume until 2021

•   Tactics may include:
    • Print – CAA magazine, community newspapers
    • Direct mail “mini” Inspiration Guide featuring partner offers
    • Radio
    • Outdoor
    • OTT/Connected TV advertising
    • Digital campaigns
    • Content development and promotion
    • Influencer campaigns

Destination Canada
•   Support available through centralized strategy
    alignment; decentralized implementation

•   Travel Manitoba would partner on data and
    content pooling

•   DC would build their supply of data and
    marketing assets and amplify our campaign

Phase 3: Restart
Travel Manitoba’s Role in Stimulating
the Tourism Economy
Existing Role
• Provide leadership in growing the tourism economy
• Strong and agile marketing agency that has generated
    increasing tourism revenues and tax revenues

New Role
• Develop and execute recovery plan to stimulate
  recovery of $1.6B in tourism revenues and $291.5M in
  provincial tax revenues
• Mitigate impact to visitor economy through response
  and proactive planning
• Become more nimble, flexible and streamlined

Building the Tourism Recovery Plan