Tourism industry urges more support

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This article was published 26/10/2023 (1039 days ago), so information in it may no longer be current.

TOURISM funding in Manitoba needs a boost, industry leaders stated Wednesday.

“With more, we can generate more,” said Colin Ferguson, Travel Manitoba’s chief executive. “We are an economic driver that can create opportunity.”

He joined a panel with Manitoba tourism sector leads Wednesday to discuss the industry’s future.

Last week, Travel Manitoba announced record-breaking tourist spending in the province ($1.8 billion in 2022). However, visitor levels haven’t reached pre-pandemic heights.

Travel Manitoba is the least-funded organization of its kind across the country, Ferguson stated.

The Crown corporation received around $14 million in funding from the provincial government for the fiscal year.

Tourism Saskatchewan took in $19.6 million from its provincial government in 2022-23.

Through Manitoba’s model, 95 per cent of tourism tax revenues funnel to the provincial government while Travel Manitoba keeps five per cent.

It’s the only entity of its kind to use the commission structure, Ferguson told a crowd at the Manitoba Chambers of Commerce event.

“We aren’t complaining — I believe that we are punching way above our weight class,” he later told a reporter. “At the end of the day, the industry wins, the government wins and we win through increased funding levels.”

Monetary constraints have kept Travel Manitoba from participating in attracting more major events to the province, Ferguson said.

Large events are opportunities, he added: “It fills hotels, fills restaurants, fills bars, creates more revenue for the province.”

Chuck Davidson, president of the Manitoba Chambers of Commerce, has watched tourism play an increasingly important role in the local economy.

“It’s always been one of those areas that we don’t talk enough about, the impact that it has on the economy,” Davidson said. “We don’t look at it the same way we do critical minerals or agriculture.”

Tourism is a consistent economic driver across Manitoba communities, he noted.

The tax-sharing model was put in place in 2016, boosting relatively low provincial funding for the sector.

“It’s getting government on board to recognize that (the tourism industry is) an investment, it’s not a cost,” Davidson said.

He would like to see a government fund preserving money for bids to attract large events to Manitoba. The return on investment regularly exceeds the cost, Davidson said.

Sports, Culture and Heritage Minister Glen Simard is setting up meetings with entities such as Travel Manitoba, a spokesperson for the newly formed NDP government told the Free Press.

The Tourism Industry Association of Manitoba released a platform during the province’s latest election. It called for elected officials to change Travel Manitoba’s funding model to a 92-8 tax share.

“Manitoba’s 95-5 funding model was once among the strongest in the country, but it has now quickly fallen behind as other provinces recognized the importance of their tourism Crown corporations,” a TIAM advocacy memo reads. “Manitoba cannot afford to be left behind.”

The memo listed provincial government funds to Travel Manitoba-adjacent agencies in Saskatchewan, Alberta, Prince Edward Island, Newfoundland and Labrador, Nova Scotia and New Brunswick as receiving more funding in recent years.

Holly Courchene, CEO of Indigenous Tourism Manitoba, is ballparking a need of $1.3 million next year to cover the organization’s operational expenses, on top of project costs.

In 2019, the province held 85 Indigenous tourism experiences. This year, it has more than doubled to 180.

“We do have funding to deliver projects, but it’s a little bit difficult to deliver those projects without that core funding and support,” Courchene said.

“Travellers are looking for these immersive experiences. We think that our Indigenous experiences are exactly what travellers are looking for, and we need support so that we can help them just be aware.”

Fewer flights to Winnipeg, largely due to a lack of pilots, and labour shortages across the industry also hinder growth, experts said Wednesday.

gabrielle.piche@winnipegfreepress.com