Responding Confidently to Changes in Travel Patterns Can Yield Success.

This morning's edition of the Chronicle Journal provided a little insight into the state of U.S. travel to the Thunder Bay area and offers a slice of optimism in what remains our closest large market. We are 45 minutes to a country of over 300 million, 35 million of whom live within a 15 hour drive of us. Ignoring this market because of the border crossing requirements and economy is foolish. We just have to work smarter than we have in the past.

Make no mistake, there are challenges, there have been declines and certainly for the outfitter markets offering the standard experiences, those declining U.S. numbers are still a reality. What we attempted to articulate to the industry in the article is that there are some encouraging trends to take advantage of and we need to adapt and evolve. In the north, we have to, as an industry, retire our traditional sense of entitlement and self depreciating negativity and start being positive, confident and aggresive because we do have world class outdoor experiences that should be on par with anything else on earth.

There is no doubt to any of us in the tourism industry that the U.S. market has declined in a post 911 security environment. Throw in an economic meltdown for good measure and you have a challenge. Fail to change your marketing tactics, research emerging trends or freshen up your product and you just add fuel to the fire. All of these things have combined to the reduction in the US market. One of the worst decisions we made as an industry after 2001 was curtailing our U.S. marketing campaigns and making generalized statements such as"why bother, they're not travelling." We simply, as an industry, didn't do our homework and we didn't shift our tactics and we didn't refresh our product.

However, a lot of U.S. residents are still travelling in general and although not in the same volumes as before, the fact that there are over 11 million passport holders in our key US border states and over 75 million nationally, one thing is certain....There are still a lot of people looking for experiences beyond their borders.

Its incumbent on us in the industry to reach these avid, affluent and educated travel markets more effectively than in the past. Selling the same thing in the same channels through the same marketing model as we did for the past 40 years doesn't work and we, as a region, have to make some changes to what we have, how we sell it and who we reach.

In 2009, when US travel to Canada was down 9.2%, U.S. traffic through Thunder Bay declined by approximately only 1%. In other words, we were largely unaffected. We lost some traditional hunting and fishing markets but gained new markets in touring and soft adventure. We did this by shifting tactics and focusing on avid markets in State capitals and being more aggressive in web and earned media through an experiential targeted approach. By reaching markets with higher percentages of government and supporting service employees - people who are less likely to lose disposable income in recessions - we were able to find some degree of success.

US traffic through Pigeon River remained steady this year for the first 4 months and while a dip in May has us watching closely, we've been told anecdotally by area hoteliers and attractions, that they are seeing the US market rebound modestly in the summer months. We can hope that this trend continues but it will require vigilance on our part in understanding the trends, knowing the consumer and reaching them effectively with good quality, high value trophy experiences that are relevant to their desires.

Some simple tips to remain successful in attracting the U.S. market.

1. Know Your customer. Who are they, where are they from and what they want to experience

2. Research - understand travel motivators. The Ministry of Tourism has some fantastic data for free on their website to help you identify the travel trends. www.tourism.gov.on.ca

3. Market effectively. In a digital age, you can reach markets globally and more cost effectively than ever before and its critical that those in the industry feel comfortable using the web, managing their content to keep it current, utilizing social media and it can start with simple things like responding to emails. Its also important to track your marketing to know what works and what doesn't.

4. Be Relevant. Offer people a experience that they seek. Times change and so do people's desires and expectations. It important to evolve with them.

5. Quality and Value. There is nothing wrong with charging what an experience is worth but make sure the visitor goes away happy, refers you to others and returns. Things like clean accommodation, good food, exceptional customer service and groomed properties go a long way. A gallon of paint, a lawn mower and a smile don't cost a lot but can have an impact.

6. Build critical partnerships. We're all in this together and we all play a role in encouraging visitors to choose our area for their experience. Even Thunder Bay, for its size and tourism budget, relies on effective tourism partners throughout the Northwest to help reach our markets effectively. Just look at the Canada's Great Outdoors program this year as an example. When we all work together and pool resources around a common goal or experience, we all benefit.

7. Be patient. Even modest gains in the beginning is positive and its important to build upon these successes year after year.

Cruise Shipping By the Numbers

With the 12th and final visit to the city for the M.V. Clelia II for 2009 this morning, we are turning our efforts to making further capital improvements to the Pool 6 lands for the vessel's 2010 return for 10 new visits and working to attract other lines to visit the community.

The total economic impact of the Clelia II in the city is estimated at $600 000 to $650 000 in 2009 and while that seems incredulous for 12 days of visits as I have been publically challenged on, the reality is that cruise shipping delivers impacts far beyond the shore tour spending of each passenger.

In addition to admission to attractions, passengers shop in retail outlets such as local galleries, dine, take taxis or rent bicycles, Motor coaches are chartered to escort them to and from attractions and musical groups are hired to entertain disembarking passengers.

But the economic impact extends far further than just the passengers. Take into account that many of the vessel's 67 officers and crew depart the vessel to shop and pick up ships supplies like cleaners, paint, cooking utensils and food supplies. The vessel empties its refuse at Thunder Bay (one of the few ports capable of taking international ship waste), and companies that supply water, security services, tug and stevedore services are also employed by the vessel stops.

Add to this the planning, marketing and maintenance of the cruise vessel terminal, the capital improvements contracted out over the course of the year and the services of Customs, Immigration and Transport Canada officials. Crew members do change over while in Thunder Bay and they fly in and out of the city and stay at hotels.

On top of this is all of the federal and provincial sales taxes generated by the purchased services.

Finally, there is the multiplier effect. For every dollar generated in the city by the cruise vessel, those dollars recirculate within the community another .6 times as the businesses and employees of those businesses in turn, spend the money earned by providing services on other local goods and services.

When all of this is added together, the result is far more than the obvious visitor dollars. Its why the development of a long term cruise shipping strategy is so important to the city's economic future and why catering to the vessel owners, crews and passengers to the highest level of quality service is imperative.

Its been a lot of fun working with the Clelia's operators, crew and passengers and we've learned a lot about the cruise shipping industry and what they require to operate successfully and enjoy their time in the community. We can't wait to see them return to the City in 2010, to see the forward movement in the capital improvements at Marina Park and the investments being made to make them feel welcome for years to come.

Tourism Thunder Bay Expands Upon its Successes for 2009

Tourism Thunder Bay has undertaken a fundamental shift in the development and deliver of tourism marketing and product development over the past two years, in alignment with the new Northern Ontario Tourism strategy. Our 2007, 2008 and 2009 marketing plans have been developed entirely on consumer research, including local market research and travel data, StatsCan data, Ministry of Tourism Travel Motivation Surveys (TAMS). The results have been marketing campaigns that have focused on the bigger picture – of positioning Thunder Bay as one of Canada’s Great Outdoor Cities around a strengthened “Superior By Nature” theme. Focus has been undertaken to raise the profile of the city as a major urban centre on the edge of world class wilderness experiences, based on TAMS data that shows outdoor activities as the #1 travel motivator for North Americans. Leading with the City’s connection to the national and provincial parks and Lake Superior is also essential at a time when sustainable tourism is becoming more relevant to travelers across all segments.

With the industry leading “Seven Days With the Giant” Partnership in 2008, the city successfully attracted increased consumer attention by weaving outdoor experiences with a wide range of urban attraction, accommodation, events and culinary activities. Raising the overall profile of the city through unique campaigns and increased media attraction has been essential to repositioning the city as a destination of choice for the leisure, group travel, corporate and sport markets.

Tourism Thunder Bay Long Term Strategic Development

With the completion and release of the Premier Ranked Tourist Destination Framework and the Ontario Competitiveness Strategy as well as the Rosehart Report and Common Voice tourism reports prepared in 2008, Tourism Thunder Bay will be embarking, beginning in spring 2009, of a long term strategic foundation, encompassing and implementing recommendations outlined in various provincial strategic reports. Tourism Thunder Bay is planning an “Open Source” industry planning session in May of 2009 to solicit constructive and progressive input into the long term focus of the department’s role as well as the overall local tourism industry in general.

Tactical Plan for 2009

Experience based print and web media in all segments (leisure, corporate, group and sport). We are pursuing new media buy outlets that combine web and print in key markets with high populations of avid and affluent travelers.

http://www.visitthunderbay.com/ is the city’s new tourism call to action. A completely new tourism web site will be launched March 11, 2009 and included easier accessibility and navigation capabilities. New content management processes allow for easy upload of current information and quick changes. The new website features rotating imagery and a newly commissioned tourism promotional video. The video will play online, distributed to event planners and is available free of charge to any community partner that wishes to help promote the city in their presentation or facility.

http://www.northernontario.travel/ Tourism Thunder Bay has a content management agreement with OTMPC to provide content upload to the new northern tourism portal. This recently launched site will have more content continuously added and works in collaboration with area partners. I encourage each hotel to develop packages and submit them to us for upload.

Visitor Experience Magazine- The second annual issue of the City’s tourism fulfillment guide was launched January 30, 2009 – three months sooner than in previous years The print and on-line magazine serves as a substantial trip planner and serves a number of markets

1. Transient drive through markets seeking accommodation retail and culinary.


2. Visiting Friends and Relatives market – with 28% of visitors in the city to visit friends and family, the magazines are available at key times per year in local outlets to help local residents plan their visitor’s stays.


3. Visitor Centers – the magazine is available at over 250 key visitor centers in the region, on both the U.S. and Canadian side


4. Consumer show distribution – an agreement with OTMPC and Ontario Parks sees the magazines distributed at over 20 sport and consumer shows in North America


5. Convention Delegate packages
   
   

For 2009 Market Segment Focus

Leisure

Expansion of the Seven Day’s partnership with Ontario Parks and the local business community to promote Thunder Bay as a great outdoor community with a rich urban culture. The campaign strikes chords with avid outdoor markets, a market still likely to travel in difficult economic times.

Corporate

Tourism Thunder Bay has disbanded its partnership Ontario’s North with respect to the corporate market, investing additional local resources to market the city as a key destination for conferences. The past partnership saw Thunder Bay share leads with Sault St Marie and Sudbury, effectively competing destinations for corporate travel. Tourism Thunder Bay is focusing on key corporate markets of Mining, First Nation, Health Sciences, Education and Government, all sectors that have a relevant reason to travel to and meet in the city. The city has also been working with event planners to develop local culinary and attractions options for planners to increase economic impacts for the community and provide unique selling advantages for the community when bidding on events.

Group Tour

Tourism Thunder Bay maintains active participation in Ontario’s North with respect to promoting group travel to the motor coach market. Efforts will continue in 2009 towards building this and new partnership are currently being negotiated with Explore Minnesota to build cross border group travel itineraries that focus on Lake Superior Circle Tour.

Other segments on group travel include:

Motorcycle and auto club touring (followed by RVs in 2010). Tourism Thunder Bay is currently leading the development of a touring strategy for Northern Ontario. The results of this study will be complete in 2010.

Cruise Shipping- Tourism Thunder Bay expect approximately 1200 passengers visiting the city on two separate vessels that will make a combined 12 visits in the community in 2009. We are working with 9 other cruise lines for future year’s itineraries.

Sport Tourism

One of the areas getting the greatest attention is the Sport Tourism segment, seen as key to building the city’s year around tourism economy. A new sport tourism strategy was released in late 2008 that sees more efforts put into the ongoing promotion of the city as a sport tourism destination, great resources for biding and a sport tourism marketing event budget to assist community groups in marketing major events. The City is currently working on bids to host the 2011 Ontario Winter Special Olympics, the 2011 RBC Cup (Junior A Nationals) and the Can Am Fire and Police Games. The city is also involved in the Canadian Sport Tourism Alliance and will continue to meet with national and Provincial sport agencies in April 2009 at their annual congress.

Media

Tourism Thunder Bay continues to focus efforts on attracting travel media to expand the positive profile of the city in select experience and geographic based markets. Preference is given to experienced and reputable media affiliated with major Canadian and international media channels that have a web and print presence.

Sport Tourism Strategy Released

The City of Thunder Bay's new Sport Tourism strategy was approved by City Council on December 8, 2008. Sport tourism is worth an estimated $40 million annually for the local economy so a greater focus on this segment of the tourism industry is key to a healthy sustainable local tourism industry buy building on the City's advantages as a sport tourism destination.

The policy, three years in development, is a significant milestone for both the Tourism and Recreation Divisions as it will create an enhanced and more formalized working relationship between the two divisions that will deliver greater results for the local tourism industry.

Based on the research and findings, the proposed Sport Tourism Events and Activities Policy recommends that the City continue to encourage and strengthen its support to the hosting of sport events that attract significant numbers of visitors to Thunder Bay.
The proposed vision for Thunder Bay is to be recognized as a leading sport host community by successfully hosting major sporting events and activities that attract visitors from outside the City. Maximizing sport opportunities through a shared City vision will:
-Build community pride and spirit
-Benefit the local sport system through the development of volunteers, athletes, coaches, officials, and facilities
-Generate positive economic benefit by attracting and hosting visitors
-Showcase Thunder Bay to national and international audiences
-Promote health and active living

In order to develop sport tourism opportunities, the proposed Sport Tourism Events and Activities Policy recommends that the City:
-assist local sport organizations to attract and host single-sport championships (international, national, provincial and regional);
-host multi-sport games either as the lead host or by supporting other community organizations to host;
-develop sport facility infrastructure;
-attract participants and spectators to sports events;
-help create new sport tourism events and activities as well as supporting existing annual ones;
-promote Thunder Bay as a training site.

For more information on the Sport Tourism Strategy, contact Paul Burke at pburke @thunderbay.ca

Tourism Thunder Bay wows the Cruise Shipping Industry

On June 20th and 21st, Tourism Thunder Bay played host to 6 cruise shipping industry executives representing various companies including Travel Dynamics, Residensea, LePonnant, Mundy Crusing, and Cruise North. They were accompanied by Stephen Burnett , the Executive Director of the Great Lakes Cruising Coalition.

The prepresrntatives were on an 8 day air safari of the Great Lakes and member ports of the Great Lakes Cruising Coaliton.

While in the city, they were treated to a tour of the Thunder Bay airport, an important ingredient in attracting vessels to use the city as a home port or terminal for starting and ending cruises, a strateegic advantage that potentially doublews the economic impact on the city. Guests were also treated to a sneak peak of Fort William Historical Park's historic precinct, revealing an incredivbley well manicured and prestine site on the heels of the June 6th flood.

Guests then enjoyed the dinner and hospitality of Whitewater Golf Course with Tim Heney of the Port Authority, Margaret Myslicki of the Thunder Bay Airport Authority and Bonnie Gauthier representing Lake Superior Visits, the local Inbound receptive operator, who all provided overviews of thier operations. After a tour of the course, the evening ended with a trip to Kakabeka Falls at 10 pm, highlighting the exceptionally long days of daylight we receive.

Saturday morning brought them to Good News on the Lake at the Historic CN Station for a catered sit down breakfast with Her Worship Mayor Peterson, Katherine Dugmore, the City's Waterfront Manager and Rob Lefavre of the Canada Border Service Agency. A presentaition on the new development followed by a tour of the Pool Six property, designated as the future cruise ship docking facility gave the delegation a great view of the harbour and a great site for future. From here, they boarded their chartered Kingair to continue a low slow flyover of the Lake Superior coast to Duluth.