Canadian Heritage Committee on Nov. 16th, 2010

[Greg Klassen]

It's about 20% of the industry, and probably lower than it should or could be. We're a little concerned because the reliance on the domestic tourism industry is greater than it was even 10 years ago. Of course, that's money moving around Canada. What we're really interested in is new money coming into Canada that is coming through exports of tourism products or people coming in to visit Canada. Our focus is really on the international market and trying to drive as many visits here and to bring other people's money into Canada.

[Scott Armstrong, Conservative, Cumberland—Colchester—Musquodoboit Valley, NS]

So what you're saying is that any money we invest that's productive, where we bring tourists from outside Canada...we get more bang for our buck, let's say, if they actually travel here, than we would by having people moving around inside the country. Those tourist dollars are better invested.

[Greg Klassen]

Yes, it's really an export industry. It's like any export. It's really new money into the country to create jobs and to create opportunities and support Canada's tourism economy, and the overall economy itself. Again, one in ten Canadians is employed in the tourism sector, relying on both the domestic and the international. The return to government in terms of revenue at all levels of government is significant and it far exceeds the amount of investment that the governments collectively make into tourism. So we think it's an overall very good investment. But we're in a very competitive space and the money is always, we believe and hope, well invested for a return for Canadians.

[The Chair, Conservative, Michael Chong]

Thank you very much, Mr. Armstrong and Mr. Klassen.

Madam Neville.

[Anita Neville, Liberal, Winnipeg South Centre, MB]

Thank you very much.

I'm substituting on this committee today and have not been following the issue as closely as others, but in listening to the discussion, there are clearly some issues around where the funding is going as it relates to tourism and community or marquee events.

What I would like to know from you is, in trying to promote tourism from other countries, how effective and how important are the marquee events that colleagues have been talking about? How would you prioritize them in terms of attracting foreign visitors to Canada?

[Greg Klassen]

They're very important. Events create a sense of urgency to come to Canada. There are lots of experiences you can have in Canada that are all summer or all year round, but events are really time limited. So some of the great events that we have across this country are really week-long events, weekend-style events, and they do create that sense of urgency for us.

In fact, we're very focused on leveraging events to help us sell Canada in general, and there are a number of very significant events. The Montreal International Jazz Festival, of course, is internationally renowned. The Calgary Stampede is internationally renowned. There are a number of similar kinds of events. Most of us could name ten of them with an international reputation. What we hope to do is to leverage those particular events to help us sell Canada in general. It's part of our experience mix, it's part of our product mix, by which we help to sell Canada in general.

[Anita Neville, Liberal, Winnipeg South Centre, MB]

I'm assuming, as I'm listening to you, that their needs for support from government are equal to the needs you have.

[Greg Klassen]

I'm not sure of what their needs are for support of government—

[Anita Neville, Liberal, Winnipeg South Centre, MB]

But they're important.

[Greg Klassen]

I don't know the details of where their funding comes from or how they invest their dollars. I know we're thankful that those events are vibrant and that we can leverage them for selling Canada.

[Anita Neville, Liberal, Winnipeg South Centre, MB]

Thank you.

[The Chair, Conservative, Michael Chong]

Thank you, Madam Neville.

Mr. Rodriguez.

[Pablo Rodriguez, Liberal, Honoré-Mercier, QC]

Rather than asking a question, I would like to make a comment. You found yourself in a delicate situation and, based on my understanding, that was not necessarily your fault, since you did not in fact ask for the funding you received. In spite of that, however, you found yourself in direct competition with organizations which are highly credible and respected and which have an impact on tourism. They attract people from around the world. Without wanting to, you ended up in a situation where you were competing with organizations which had received funding in the past and which also attracted tourists to this country. That is unfortunate but, personally, I do not consider that to be your fault.

It is my view that, through its actions, the government created this situation. It deprived organizations of this money that they were expecting to receive, it took money away from organizations which—this bears repeating—attract tourists in order to give it to your organization, which has a specific mandate in terms of tourism development. In my opinion, that is a real shame, particularly since this is part of a highly political program. Most of the projects were chosen by the Minister himself; the Deputy Minister told us that at a recent meeting. I think lessons should be learned from this experience so that we know how to behave in future. He should not be repeating the same mistakes, including changing the rules halfway through the process.

When the organizations made their application, they were never told that there would be a maximum of two projects funded for every large city. They applied in good faith, and several of them, including the FrancoFolies, were rejected because of a new rule pulled out of a hat and applied at the last minute. The government is really the one responsible, rather than you. I wanted to say that.

I have no questions. Thank you.

[The Chair, Conservative, Michael Chong]

Thank you very much, Mr. Rodriguez.

Madame Lavallée.

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

Thank you very much.

I would like to come back to what you did with the $8 million.

[Greg Klassen]

Again, $3 million was invested in China.

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

You say that you invested that money in China. How did you invest it?

[Greg Klassen]

In fact, we're right in the middle of developing a marketing campaign, an advertising campaign, in China that will be invested in towards mid- to late-December and into January, February, and March.

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

What kind of marketing campaign are you engaged in? Does it involve television ads?

[Greg Klassen]

Well, in fact, we don't know what the media mix is going to be right now. It will be a combination, likely, of some print advertising—

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

It is starting in December?

[Greg Klassen]

Yes, in December.

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

I see. And will it be print or television ads?

[Greg Klassen]

It could be both. We don't know what the media mix will be. Our advertising agency that we're working with in China right now is giving us the final specifications for our review. So it's likely going to be a combination of social media, television, print advertising--including newspapers and perhaps magazines--and working in cooperation with tour operators in China who are selling Canadian product right now.

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

What is your target clientele in China?