Evidence of meeting #29 for Canadian Heritage in the 40th Parliament, 3rd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was money.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Greg Klassen  Senior Vice-President, Marketing Strategy and Communications, Canadian Tourism Commission
Catherine Beauchamp  Executive Director, Corporate Communications and Governement Relations, Canadian Tourism Commission

3:45 p.m.

Senior Vice-President, Marketing Strategy and Communications, Canadian Tourism Commission

Greg Klassen

We weren't aware of the.... The $8 million was an investment the Government of Canada chose to make in the Canadian Tourism Commission in support of tourism. That's the business we're in. We're in the business of marketing Canada as a tourism destination around the world.

I think the government knew, based on the previous returns on investment that we'd been able to deliver back from previous investments through the stimulus program, that it was a good investment for Canada's tourism industry. And I believe we worked very hard at delivering against that.

3:45 p.m.

Bloc

Carole Lavallée Bloc Saint-Bruno—Saint-Hubert, QC

I am going to stop right there. I am still referring to the 2009 annual report. On page 11, there are eight tourism industry indicators, including total tourism revenue, total tourism export revenue, total tourism domestic demand, and so on, and in every case, with one exception—the average per person spend per night, which increased by $4—the numbers went down. In every other case, all your indicators decreased. For example, the total number of Canadians employed in the tourism industry was 652,000, but it dropped by 1.6%. In terms of total tourism revenue, there was a drop of 5% in relation to revenues of $71 billion.

In my opinion, the Minister of Industry did not give you $8 million because you were performing well; rather, he gave you that money for other reasons. Deputy Minister Richard Dicerni was here yesterday and told us that you had been given that money to leverage the positive spinoffs of the Olympic Games. But you had already received $7.7 million for the Olympics in 2009; $6.6 million in 2008, and $2.7 million in 2007. You had already received a great deal of money. One has reason to wonder what more you could do in the tourism industry with $8 million that you had taken from the Marquee Tourism Events Program.

What more did you think you could do compared to cultural organizations or marquee tourism events already in place whose budgets were cut?

3:50 p.m.

Senior Vice-President, Marketing Strategy and Communications, Canadian Tourism Commission

Greg Klassen

For sure, 2009 was a very difficult year for Canada's tourism industry. As you quite accurately pointed out, we lost a lot of ground in many, many areas, including, you're correct, employment in the tourism industry itself. That's why I think we're thankful that the Olympics came along when they did. The opportunity for us to be on the world stage came along when it happened, and we had an opportunity to invest in the afterglow of those Olympics by taking all of that awareness and converting that into actual customers into Canada.

We don't have our 2010 year plan out right now, but I think you will see a very markedly different annual report this time next year, and you will see a lot of double-digit growth in many of our markets, including markets like China, India, and Brazil that are in the high 30% level. We hit bottom, and we're climbing in the United States, and in other markets as well.

3:50 p.m.

Conservative

The Chair Conservative Michael Chong

Thank you very much, Mr. Klassen.

Merci, Madame Lavallée.

Mr. Del Mastro.

3:50 p.m.

Conservative

Dean Del Mastro Conservative Peterborough, ON

Thank you very much, and thank you to the witnesses for appearing here today.

I have to tell you, I'm surprised by the opposition's questions. I don't think they're fair to the Tourism Commission. I don't think anybody has ever asked a witness before if they're aware that the money they received could have been used for another worthy cause and tried to make the witness feel guilty with respect to that. I don't think we'd bring in Les Grands Ballets and ask them if they're aware that the money could be used for scientific research, or we'd bring in Formula One representatives and tell them the money could be used to build affordable housing. That's in fact what they're doing. They're trying to suggest that the money the Canadian Tourism Commission has received to promote Canada could have been given to someone else. Of course, it could have. That's what governments do: they make decisions; they make investments. They make those decisions based on where they think the money is best spent, and we expect the people we are giving that money to, to spend it wisely and to get results.

Has the Canadian Tourism Commission been able to quantify any results, broadly, from any of the investments you've been making? I know we had some successes in China. Has that led to any Chinese tourism, etc.? Can you speak to any quantifications you can make on the investments the Government of Canada has made?

3:50 p.m.

Senior Vice-President, Marketing Strategy and Communications, Canadian Tourism Commission

Greg Klassen

Yes. Thank you.

As a matter of fact, we do conversion studies in all our markets. Conversion studies are really, when we do a marketing campaign, third-party audited results. We would go back, say, and ask a sample of the questions, ask whether people saw our advertising and whether it created any impact for them. When they say yes, we give them four months to visit Canada, spend some money, spend some time here, and come back. Then we ask them the same questions about how much money they spent and whether they went, so that we can do an evaluation of what kinds of returns we get as a direct result of our marketing campaigns.

In fact this just came out today, so the timing is good: we have four markets for which we have the conversion results out now. These are the U.K., France, Germany, and Australia.

Out of the U.K. itself we have almost 300,000 incremental tourists coming to Canada as a result of the investment we made this year alone. Apart from the increased investment and the Olympics, there were no other changes to the strategy itself; the messaging was more or less the same and the advertising was the same. Though it's very early for us to say, we think this is highly attributable to the investment the government made in marketing investment for Canada, and of course something huge called the Olympics, which of course would have had the expected impact that it had.

Over 70,000 Australians—incremental visitors to Canada—came over and above 2009, and 128,000 German travellers came over and above 2009. The numbers from the U.K. went from $255 million to $379 million, thus delivering roughly $100 million or so in increased investments.

So we have quantitative proof. We don't have the U.S., which of course we're waiting for—by a long shot our largest market—to see how we've moved the meter in those areas. But we feel as though we have some very strong early returns.

3:55 p.m.

Conservative

Dean Del Mastro Conservative Peterborough, ON

That's great.

Just very quickly, I would assume the Canada Tourism Commission works to promote the province of Quebec as well as other regions of Canada.

3:55 p.m.

Senior Vice-President, Marketing Strategy and Communications, Canadian Tourism Commission

Greg Klassen

Of course. In fact, we have a nuance in terms of our saying that “we leverage”. We leverage Quebec, all the provinces, the cities we work with, and the experiences and products across Canada to promote Canada, and not necessarily the other way around.

3:55 p.m.

Conservative

Dean Del Mastro Conservative Peterborough, ON

I liked your “locals know” promotional campaign. I thought it was fantastic.

I have a great idea for you. There's a 63-foot hydraulic lift lock in the heart of Peterborough. Actually, it's the tallest lift lock in the world; it's an engineering marvel. I think it would be a fantastic centrepiece for the “locals know” Canada Tourism Commission campaign, and I know the “Electric City”, home of the Trent-Severn Waterway, would love to be featured in one of your ads.

Thank you.

3:55 p.m.

Conservative

The Chair Conservative Michael Chong

Thank you very much, Mr. Del Mastro.

Mr. Simms.

3:55 p.m.

Liberal

Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL

Mr. Chair, in the community of Glover's Harbour, I have this large squid.

3:55 p.m.

Voices

Oh, oh!

3:55 p.m.

Liberal

Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL

It's true; it's a giant squid.

Actually, he has a point about the lift lock. It's quite good, quite stunning.

You moved a little while ago. You moved from Ottawa to Vancouver. How's that going?

3:55 p.m.

Senior Vice-President, Marketing Strategy and Communications, Canadian Tourism Commission

Greg Klassen

It's almost five years to the day. In fact, I was one of those who did move from Ottawa to Vancouver, so I'm back in my old hometown.

3:55 p.m.

Liberal

Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL

When you made that transition from here to there, what money was used to do it? Was any of the money that we see out of this used in that transition?

3:55 p.m.

Senior Vice-President, Marketing Strategy and Communications, Canadian Tourism Commission

Greg Klassen

No. I believe we got incremental funding to support the move at that time. That's going back about five and a half years.

3:55 p.m.

Liberal

Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL

Ms. Beauchamp, do you have a...?

3:55 p.m.

Catherine Beauchamp Executive Director, Corporate Communications and Governement Relations, Canadian Tourism Commission

I was just going to say we didn't spend it all.

3:55 p.m.

Liberal

Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL

Well, there you go. That's okay, because the marquee tourism program didn't spend it all either.

When it comes to the Olympics, when it comes to funding something this large, obviously it's a line item, it's something that's entirely different. What is the total amount that went into the Olympics from the Government of Canada alone? Do you know that?

3:55 p.m.

Senior Vice-President, Marketing Strategy and Communications, Canadian Tourism Commission

Greg Klassen

I'm afraid I only know the amount of investment that we put in. The incremental investment that we received was $26 million over a five-year period of time.

3:55 p.m.

Liberal

Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL

So it's $26 million over five.... And is that under the supplementary funding for 2010?

3:55 p.m.

Senior Vice-President, Marketing Strategy and Communications, Canadian Tourism Commission

Greg Klassen

It would have started in 2007, through 2012.

3:55 p.m.

Liberal

Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL

Yes, okay. That's right.

But you didn't apply for this $8 million that we seem to be focusing on here. Is that correct?

3:55 p.m.

Senior Vice-President, Marketing Strategy and Communications, Canadian Tourism Commission

Greg Klassen

It's not that we didn't apply for it. We have lots of opportunity for investment with the Canadian Tourism Commission, and this was part of it.

3:55 p.m.

Liberal

Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL

What was the genesis of this supplementary funding, then? Did you go to them and say “We really need some extra money here for the Olympics”? Did you put a bid in for it?