A letter to industry partners from CTC President & CEO Michele McKenzie

Dear Industry Partners:

As many of you may know the Canadian Tourism Commission (CTC) is about to set new and exciting priorities for 2011-2015 based on guidance from its Board of Directors, discussions with our shareholder, and consultations with industry partners as well as provincial and territorial colleagues. 

As the economic climate has changed since the CTC was created in 2001, we now need to respond to this reality. CTC has had the benefit of Federal Government Olympic funding and new Stimulus funding in recent years to boost tourism marketing. These funds are now winding down. CTC overhead and complexity costs have eroded funding available for marketing programs.  CTC is making changes now in order to lead Canada’s tourism industry into the next decade efficiently, competitively and within budget.

The primary business change will be to focus investments where the Canada tourism brand leads and where Canada will be resourced to compete meaningfully in high value international markets.  For example, most provincial partners are increasingly showing little or varying interest in following CTC lead advertising campaigns in the United States - opting to implement their own provincially branded initiatives and programs to drive business across the border to their destinations specifically, their province, their experience.

CTC’s leadership and partnership are very much sought in other international markets where Canada’s tourism brand holds a much greater impact.  CTC will remain invested in the U.S. market to strengthen its business to business brand through a more selective channel strategy and CTC will cede consumer advertising and trade development activities in the US to Canadian destinations, many of which are already heavily invested.

The secondary shift is operational and delivers a leaner structure, partially due to a natural reduction as a result of the winding down of one-time funding under Olympic and Stimulus programs, as well as a change in our international footprint.

The future affordability of international operations and sustainable growth will be found through centralization. This means CTC will free up funds for more marketing impact without ‘exiting’ markets:

• CTC London, U.K. will serve as the regional hub for CTC’s traditional markets of U.K., France, Germany and Australia.
  
  
• CTC Vancouver Headquarters will serve as the regional office for new and emerging tourism markets, Korea, China, India and Brazil as well as for markets in transition, Japan and Mexico.
  
  
• In market capabilities will be maintained in France, Germany and Australia with the assistance of GSAs
  
  
• All markets will be actively supported by GSAs or CTC staff

  This agent model is already being successfully used by CTC in India and Brazil and is a structure used by other world-class organizations like Tourism Australia, New Zealand Tourism, and Visit Britain.  

  The combination of changes in the US market, and a leaner operating model, means CTC will free up almost $16M by 2012, for redeployment to priority international markets.

  We know this kind of investment internationally is needed if the Canada tourism brand is to gain strength and draw more travellers into our country.

  We also see these steps as supportive to attaining Canada’s target of $100B in tourism revenue by 2015, as set by Federal-Provincial-Territorial Ministers just last year.

  As part of our ongoing dialogue with stakeholders, we will continue to provide you with details of these changes the coming weeks.  In instances where new key account managers will be assigned we will let you know who they are and how to get in touch with them to ensure a very smooth transition.

  The CTC will continue to work with you all in support of moving our tourism industry forward and to create every competitive advantage possible for Canada.

  Thank you,

  Michele McKenzie