Shakeup in federal tourism agency (reprint from the Globe and Mail)

The makeover of the federal tourism marketing agency - which involves lay-offs and closing international offices - is intended to free up $16-million within two years for more programs in key markets.

The changes come on the heels of a research report called Global Tourism Watch that painted a dismal picture of tourism to Canada in 2009. Out of the commission’s 10 key international markets, only China delivered an increase in visitors to Canada in 2009.

Tourism traffic from Australia tumbled by 14 per cent last year, from the U.K. by 17 per cent, South Korea by 25 per cent and Japan, 28 per cent. The biggest drop was in tourism from Mexico, which fell 37 per cent.

The primary business shift will be to focus investments on “high yield” overseas markets and cut back in the U.S and parts of Europe, a statement from the commission says. Consumer advertising and trade development activities in the U.S. to Canadian destinations will be discontinued. Services for Europe and Australia will be consolidated in London. Offices in Vancouver will handle services in Asia, Mexico and Brazil. Offices in Australia, France and Germany will be replaced with general sales agents.

The lay-offs will mean a leaner operation at its headquarters in Vancouver and a change in its international footprint. By reducing overhead costs, the commission will be in a better position to compete for tourism business, the commission statement says.

The research report by the commission’s research department attributed the drop in tourism in Canada in 2009 to the global economic impact and the outbreak of the H1N1 flu virus. The commission is active in Australia, France, Germany, the United Kingdom, the U.S., Mexico, South Korea, Japan, India, Brazil and China.

The impact of the 2010 Olympic Winter Games on tourism in Canada is not yet clear. The commission had a budget of $26-million for funding of Olympic-related projects. Also, Ottawa’s special stimulus funding in 2009 included $20-million to market Canada over a two-year period to “priority and emerging international markets.”

The commission continues to make the most of federal government Olympic funding and the stimulus funding, the commission statement says. However the funds and their associated programs come to a natural and planned end. The commission has already begun to adjust for that transition, the statement says.

The federal agency, which was created in 1995, went through a major reorganization five years ago when its head office was moved to Vancouver from Ottawa. Only a handful of employees agreed to move out west, requiring the agency to fill several key executive positions and senior manager positions. The new management team reorganized the agency’s operations at that time.

The commission is an agency within Industry Canada that works with the tourism industry and the federal, provincial and territorial governments to market Canada and undertake industry research.

“The federal government fully supports the commission as the country’s national tourism marketing organization,” Michel Cimpaya, a media relations officer with Industry Canada, said earlier this week in an e-mail response to a request for an interview.

“We continue to invest in the CTC’s marketing strategies as they help to grow tourism revenues for the Canadian economy,” he stated. “That means there is no change to the government relations with the CTC or its support,” he added.