NLIS 34
March 21, 2005
(Tourism, Culture and Recreation)
 

Investing in our tourism industry

In recognizing tourism as an area of strategic growth, Budget 2005 includes an additional $1 million for the tourism marketing budget, bringing the total budget to $8 million. Government will also reallocate an additional $300,000 from the existing tourism budget to focus on tourism product development and extending the operating season of provincial visitor information centres.

Tourism, Culture and Recreation Minister Paul Shelley said government recognizes tourism as an area of strategic growth. "We believe that an investment in tourism will generate revenue in all regions of the province � through increased visitors, increased capacity of accommodations and activities, resulting in increased employment and revenue for tourism operators and the communities in which they reside."

The minister added that in order for the province to reach its true tourism potential, government must continue to professionally market the destination. "Becoming a successful tourism destination involves a sustained and consistent marketing effort over time. The competition for tourists is great and the timeline of building demand is gradual. Effective tourism marketing strategies require sustained investments. It is through effective and increased marketing efforts that we will continue to grow non-resident visitation and spending."

Tourism Marketing Budget
In keeping with its commitment to increase the tourism marketing budget by $1 million annually until provincial marketing expenditures match spending in other Atlantic provinces, government will allocate an additional $1 million in Budget 2005, bringing the tourism budget to $8 million.

Destination Labrador
Tourism continues to hold great potential in this province. Nowhere is the potential greater than in Labrador, with its vast untouched landscapes and outdoor opportunities second to none in the world. Government will provide $300,000 over three years to promote Labrador as a tourism destination through the Destination Labrador program. Destination Labrador is a non-profit organization comprised of industry and federal and provincial representatives from all regions of Labrador. The total project is $1.38 million over three years in cost-shared funding. The Government of Newfoundland and Labrador is the first funding partner to confirm its investment for the project. (See News Release - Budget 2005 affirms commitments to Labrador development)

Visitor Services Program
The recently completed Visitor Information Services Strategy for Newfoundland and Labrador proposes a more coordinated approach to delivering visitor information centre services in the province. Government will allocate $120,000 in Budget 2005 to enhance visitor services in the province. This investment includes $60,000 to develop new partnership agreements to ensure a consistent level of service at local/regional visitor information centres on behalf of the five regions and the province.

An additional $60,000 will be allocated for the Visitor Information Centre Grant Program, bringing the total budget to $136,000. The additional $60,000 will be allocated to regional visitor information centres in each of the five recognized and designated travel regions in the province - Avalon, Eastern, Central, Western and Labrador. Within these regions, 10 regional service centres have been identified for future investment to serve as major service centres for their region.

Tourism Product Development
Government is committed to working in partnership with industry to improve the quality of the tourism product. As government continues to market our province as a unique tourism destination, there must also be investment in product development in all regions of the province. In order to achieve this, government will reallocate $250,000 from the existing tourism budget to support enhanced tourism product development services that will focus on product market readiness, strengthening and building on tourism demand influencers, snowmobile and ATV tourism, staff development, and industry development workshops. This reallocation of funding will help to ensure a greater balance between both tourism marketing and tourism product development.

Extending the Operating Season for Visitor Information Centres
Finding new ways to encourage travel beyond the summer season is key to the long-term viability of the tourism industry. Government will reallocate $50,000 from the existing tourism budget to extend the operating season for provincially-owned visitor information centres, which currently operate from late May to late September, to operate from mid-May until early October. Government operates seven visitor information centres: Port aux Basques, Deer Lake, Notre Dame Junction, Clarenville, Whitbourne, Argentia and North Sydney.

Visitor information centres provide an important tourism information and counseling service to travelers, both from within and outside the province. Approximately 130,000 tourists visit visitor information centres throughout the province each year and access information on accommodations, events and attractions.

Recognizing the importance of our provincial parks to the province�s tourism industry, government has announced $250,000 for upgrades to La Manche Provincial Park this year and has committed to continue to invest in our parks to ensure a well-developed provincial parks system. (See News Release - Strategic initiatives to safeguard our natural heritage)

"Our investments in tourism are resulting in increased economic return to the province," said Minister Shelley. "The province experienced an improved tourism season overall in 2004 as compared to 2003. To the end of 2004, there were an estimated 449,300 non-resident visits to Newfoundland and Labrador and an estimated $330 million in tourism expenditures in the province, representing increases of six per cent and 10 per cent respectively over 2003 levels. This estimated growth in tourism exceeded that reported in other Atlantic provinces."

Media contact: Tansy Mundon, Communications, (709) 729-0928, 685-1741

2005 03 21                     3:45 p.m.


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