Chair and Members of Community Planning and Economic Development. Original Signed

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P.O. Bx 1749 Halifax, Nva Sctia B3J 3A5 Canada Item N. 8.1 Cmmunity Planning and Ecnmic Develpment Standing Cmmittee February 16, 2017 Special Events Advisry Cmmittee June 28, 2017 TO: Chair and Members
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P.O. Bx 1749 Halifax, Nva Sctia B3J 3A5 Canada Item N. 8.1 Cmmunity Planning and Ecnmic Develpment Standing Cmmittee February 16, 2017 Special Events Advisry Cmmittee June 28, 2017 TO: Chair and Members f Cmmunity Planning and Ecnmic Develpment SUBMITTED BY: Original Signed Maggie MacDnald, Managing Directr, Gvernment Relatins and External Affairs DATE: January 4, 2017 SUBJECT: HRM s Rle and Apprach t Turism, Festivals, and Special Events Infrmatin Reprt ORIGIN June 16, 2016: MOVED by Cuncillr Craig, secnded by Cuncillr Watts that the Cmmunity Planning and Ecnmic Develpment Standing Cmmittee request a staff reprt that utlines the prcess and key stakehlders fr articulating HRM s rle and apprach t turism, festivals, and special events as utlined in Halifax Ecnmic Grwth Plan , recently apprved by Reginal Cuncil. MOTION PUT AND PASSED UNANIMOUSLY. LEGISLATIVE AUTHORITY The Halifax Reginal Municipality Marketing Levy Act. 2001, c. 51, s. 1 cnfers legislative authrity t impse a levy, t be knwn as a marketing levy, upn a persn wh, fr a daily charge, fee r remuneratin purchases accmmdatin in the Municipality. The levy cllected shall be used by the Cuncil t prmte the Municipality as a turist destinatin. The Halifax Reginal Municipality Charter 2008, c. 39, s. 1. (the Charter) cnfers legislative authrity t enter int a cntractual relatinship with Destinatin Halifax fr the purpses f delivering services as specified in Schedule A t the agreement. HRM s Rle and Apprach t Turism, Festivals, and Special Events Standing Cmmittee Reprt February 16, 2017 BACKGROUND Turism can be defined as the activities f peple traveling t and staying in places utside their usual envirnment fr leisure, business r ther purpses fr nt mre than ne cnsecutive year. Frm a plicy perspective, turism develpment entails gvernments, cmmunities and the private sectr s effrts t increase turist visitatin and spending, thereby grwing jbs, increasing wages and realizing ther cmmunity benefits. Cnventins, festivals, sprting events, cruise ships, air travel, ut-f-prvince marketing, lcal turs and ther assets and effrts play a rle in attracting turists t Halifax. The Halifax Reginal Municipality (HRM) is a significant turism stakehlder in Halifax. It wns the Sctiabank Centre, a cncerts, sprts, and special events venue in dwntwn Halifax with a 10,000+ seating capacity; and, it prvides peratinal funding t Trade Centre Limited which manages Sctiabank Centre and the Wrld Trade & Cnventin Centre. HRM als has a ne-third stake in the cnstructin f the Halifax Cnventin Centre, and a 50% interest in the crwn crpratin tasked with perating it. In additin, HRM prvides apprximately $2.9 millin in annual tax relief t the Halifax Internatinal Airprt Authrity which perates the Halifax Stanfield Internatinal Airprt; and, thrugh funding frm the marketing levy, HRM prvides funding t attract and hst large-scale sprting and turism events that create significant ecnmic impacts, prmte Halifax as a multi-experiential event destinatin, and attract turists t HRM fr multi-day visits. Its peratinal supprt t the Halifax Partnership als advances the wrk f the Halifax Gateway Cuncil, tasked with grwing air and cruise visitatin t Halifax. HRM has tasked Destinatin Halifax, its assigned Destinatin Marketing Organizatin (DMO), t prmte the municipality as a year-rund destinatin f chice fr business and leisure travelers. Created in April 2002, Destinatin Halifax advertises in external markets and attends trade shws t attract and secure meetings and cnventins. The rganizatin is a partnership between the Prvince f Nva Sctia, HRM, the Htel Assciatin f Nva Sctia (HANS) and participating industry members. Its Bard f Directrs includes a staff representative f HRM s Chief Administrative Officer, an elected representative f Cuncil and the Mayr, all f whm are vting members. In 2014, Reginal Cuncil endrsed Destinatin Halifax s current arms-length gvernance mdel. Destinatin Halifax receives the majrity f its funding frm HRM, which is prvided thrugh an annual perating grant and 60% prtin f the Marketing Levy, a percentage assessment levied n the rental f certain htel rms in HRM. The peratinal grant has remained at $386,600 +HST per year since at least The levy disbursement t Destinatin Halifax in 2016 was apprximately $2.1 millin. HRM s levy disbursement and peratinal grant t Destinatin Halifax accunt fr apprximately 89% f Destinatin Halifax s revenues. Attachment 1 utlines the mandate, related activities and HRM financial supprt t majr turism stakehlders in HRM. DISCUSSION Develpments in the Turism Sectr Halifax s five-year ecnmic strategy, the Halifax Ecnmic Grwth Plan (Ecnmic Grwth Plan) was endrsed by Reginal Cuncil in April 2016, and it includes a cmmitment t articulate HRM s rle and apprach t turism, festivals, and special events. This was deemed necessary in light f develpments in the lcal turism sectr thrughut They included: The creatin f a new prvincial turism agency. In April 2015, the Prvince f Nva Sctia disbanded the Nva Sctia Turism Agency (NSTA) and created in its place Turism Nva Sctia (TNS), a private sectr-led Crwn Crpratin. TNS missin is t undertake strategic marketing and sectr develpment activities t attract mre first-time visitrs, with the aim f dubling turism revenues t $4 billin by 2024.TNS des nt prvide cre/peratinal funding t ther rganizatins; therefre, the $75,000 Destinatin Halifax had received annually frm the Prvince thrugh the previus NSTA ceased. HRM s Rle and Apprach t Turism, Festivals, and Special Events Standing Cmmittee Reprt January 19, 2017 New leadership and strategic directin at Destinatin Halifax. In September 2015, Destinatin Halifax hired a new President and Chief Executive Officer. The Halifax Cnventin Centre. The $169 millin Halifax Cnventin Centre was being (and cntinues t be) built and its sales team had begun pursuing meeting and cnventin leads in natinal and internatinal markets. Onging develpment f the 100 Islands as a turism destinatin n the Eastern Shre. The Nva Sctia Nature Trust, Destinatin Eastern and Nrthumberland Shres (DEANS), the Atlantic Canada Opprtunities Agency, the Nva Sctia Department f Envirnment and lcal residents were wrking tgether t prtect and market a stretch f wilderness between Clam Harbur and Mushabm Harbur as an ec-turism destinatin. Knwn as the 100 Wild Islands, the area is cnsidered a vast, untuched, eclgically rich and diverse castal archipelag 1 that culd prvide incremental ecnmic benefits t Musqudbit Harbur, Sheet Harbur, Sherbrke, and surrunding areas. Then, in April 2016, the Prvince annunced that its majr events funding rganizatin, Events Nva Sctia, wuld be transferred frm Turism Nva Sctia t the Department f Cmmunities, Culture and Heritage. Recent Alignment n Turism Issues Since the abve mtin was passed by the Cmmunity Planning and Ecnmic Develpment Standing Cmmittee in June 2016, greater clarity and alignment f turism rles and appraches have been achieved. Mre specifically: Destinatin Halifax has develped sales and marketing strategies aligned with Turism Nva Sctia (TNS). In 2016, Destinatin Halifax develped five-year leisure travel sales and marketing strategies. In terms f leisure travel, the rganizatin is fcusing n attracting Maritimers t visit Halifax because: they accunt fr the largest segment f leisure travelers t the municipality (56% versus the secnd largest segment, Ontari, at 9.5%); Maritimers visiting Halifax are largely drawn t Halifax s urban experiences, a cmpetitive advantage ver ther nearby destinatins; there is pprtunity t grw the segment since Halifax nly has a 15% share f intra- Maritimes leisure travel; there is a greater pprtunity fr repeat visitatin; and, this segment is the mst cst-effective t reach. T grw visitatin, it will psitin Halifax in the minds f Maritimers as the place full f activity, enhance the Destinatin Halifax website, and prmte specific events and activities. Destinatin Halifax is nt freging ther gegraphic markets. Instead, it is wrking with TNS wh will take the lead n marketing the prvince in Mntreal, Quebec, Trnt, Nrtheastern United States, Germany, United Kingdm, and China. In these markets, TNS will prmte the prvince s uncrwded explrer-friendly seacast, while Destinatin Halifax will use scial media and partners cmmunicatin channels t shwcase utdr activities cmmn in rural Halifax. Last year, Wild Islands Legacy Campaign, accessed January 4, 2017. HRM s Rle and Apprach t Turism, Festivals, and Special Events Standing Cmmittee Reprt February 16, 2017 Destinatin Halifax partnered with TNS t buy nline search terms thrugh the TNS Ggle accunt t maximize its marketing investments in target markets. As fr the meetings and cnventins (M&C) segment, it represents apprximately ne quarter f all visitr spending in the municipality. The largest share f M&C rm nights bked are fr Canadian assciatins (45.8%) and internatinal assciatins (18.9%). Destinatin Halifax intends t, amng ther things, grw the Canadian assciatin segment by: increasing sales activity in the Ottawa and Trnt regins; increasing bkings by third-party planners by fcusing n dmestic site selectin cmpanies; and, extending the traditinal M&C seasn by marketing t the SMERF (Scial, Military, Educatinal, Religius and Fraternal Grups) market. In many instances, Destinatin Halifax and the Halifax Cnventin Centre Crpratin Centre wrk tgether t submit bids t cnference planners. HRM s rle in rural turism develpment is clearer. Turism is a rural ecnmic develpment pprtunity, particularly alng the Eastern Shre, and the rle f HRM and its partners are clearer. Destinatin Halifax plays the verall turism marketing rle fr HRM. Destinatin Eastern and Nrthumberland Shre (DEANS) meanwhile markets the Nrthumberland (Pictu & Antignish) and the Eastern Shre (Eastern Halifax and Guysbrugh Cunty). The Halifax Partnership (the Partnership) prvides ecnmic develpment expertise where needed; and, HRM may prvide inkind expertise and additinal funding. In 2016, cllabratin between partners n the develpment f the 100 Wild Islands wrked in the fllwing way: Any images and vides captured by Destinatin Halifax f the Eastern Shre will be shared with partners and may be used in future marketing campaigns; Recgnizing its lead rle in turism marketing, Destinatin Halifax agreed t versee DEANS use f $6,400 in HRM funding t market the Eastern Shre t turists; With funding frm the Atlantic Canada Opprtunities Agency, DEANS, alng with the Halifax Partnership, crdinated cmmunity and business int a turism plan fr the area; and, In August, Reginal Cuncil apprved a $300K grant t the Nva Sctia Nature Trust s t assist in the acquisitins f the apprximately 7,000 acres f near-shre islands; and, On January 19, 2017, the Cmmunity Planning and Ecnmic Develpment Standing Cmmittee (CPED) passed a mtin recmmending t Reginal Cuncil that the Municipality prvide in-kind and financial supprt in the amunt f $33,700 t DEANS t further develp turism alng the Eastern Shre. Destinatin Halifax cntinues t wrk with turism stakehlders n ther issues as well. Destinatin Halifax s President and CEO sits n the Bard f the Halifax Gateway Cuncil t help grw air and cruise visitatin t the municipality. In 2017, it will be wrking with Parks Canada, Discvery Centre, Halifax Waterfrnt Develpment Crp, and the Restaurant Assciatin f Nva Sctia t market their respective attractins. Destinatin Halifax entered int a revised services agreement with HRM. In Octber 2016, Reginal Cuncil apprved an amended Services Agreement with Destinatin Halifax. It reflects current market cnditins and is aligned with Turism Nva Sctia s new rganizatinal strategy, HRM s Rle and Apprach t Turism, Festivals, and Special Events Standing Cmmittee Reprt February 16, 2017 Destinatin Halifax s new key perfrmance indicatrs and sales and marketing strategies, and the Halifax Ecnmic Grwth Plan Destinatin Halifax s input int the Halifax Ecnmic Grwth plan , its new sales and marketing strategies, its amended services agreement with the HRM, nging develpment f the 100 Wild Islands, and cntinued cllabratin with the Halifax Partnership, the Prt f Halifax, Halifax Cnventin Centre, and ther turism stakehlders n ther turism matters has clarified stakehlder rles and appraches in the sectr generally. Assessing Halifax s Rle in Majr Events While rles in Halifax s turism sectr appear clear, they are less s in the area f majr events. HRM s majr event hsting mandate, as stated in the 2010 Halifax Reginal Municipality Event Strategy is t supprt rganizatins t attract and hst large-scale special events within the Halifax Reginal Municipality thrugh grants. HRM des nt directly prepare r supprt bids t secure majr events, nr des it prvide rganizatins with enhancements t their event schedules nce in Halifax. Destinatin Halifax cmmits t fster marquee festivals and events that will prvide an increased pprtunity fr destinatin animatin and draw turists t the Municipality as utlined in its services agreement with HRM. T these ends, it: bids n sprting events that d nt require significant crdinatin amng lcal partners; prvides marketing and bid supprt expertise via event cmmittees (e.g Canadian Cuntry Music Week); and, prvides marketing cllateral t partners invlved in develping majr event bids. These partners include universities, sprts and cultural grups in the municipality, as well as the Sctiabank Centre and the Halifax Cnventin Centre. Destinatin Halifax als prmtes events in rder t attract leisure travelers t the municipality Halifax has a histry f hsting significant majr events. While many f these events brught quantifiable ecnmic and scial benefits t the municipality, the islated manner in which they were rganized may have limited their impact. With this and the abve CPED recmmendatin in mind, in September 2016, HRM staff launched a prject t clarify the rles and respnsibilities f Halifax s key majr events stakehlders and t develp a mre crdinated and cllabrative apprach t event develpment and staging. In September and Octber 2016, HRM invited majr events stakehlders t review the current apprach t majr event attractin and hsting in Halifax, and t determine if there was cnsensus t mve frward as a grup t create increased partnerships, rle clarity, and stream-lined decisin making prcesses. Representatives frm the fllwing rganizatins were invited t participate: Destinatin Halifax, Halifax Partnership, Sprt Nva Sctia, Canadian Sprt Centre Atlantic, Events Nva Sctia, Htel Assciatin f Nva Sctia, Sctiabank Centre, Halifax Chamber f Cmmerce, Halifax Cnventin Centre, Restaurant Assciatin f Nva Sctia, and the Nva Sctia Department f Cmmunities, Culture and Heritage. The initial sessins were facilitated by GM Event Inc. and the cmplete reprt can be fund in Attachment 2. Frm these sessins, six issues were identified: 1. Leadership. While there are many rganizatins and grups invlved in the develpment and staging f majr events, there is n designated lead agency r shared leadership mdel t prvide clarity and directin n crdinatin, rles and accuntability. 2. Visin. Halifax lacks a clear and distinct visin and mandate related t majr event develpment and hsting. In its absence, a mre ad hc apprach has been adpted and the financial, time and reputatin pressures limit a fact-based decisin-making prcess. HRM s Rle and Apprach t Turism, Festivals, and Special Events Standing Cmmittee Reprt February 16, Resurces. The human and financial resurces required t develp new business and the pprtunity csts assciated fr majr event bids is a gap in the current mdel fr Halifax and is a limiting factr in attracting events that bring preferred impacts r benefits. 4. Differences in the sprt and cultural landscapes. There are distinct differences in the sprt and cultural landscapes as it relates t bidding and staging majr events and it is imprtant t recgnize these variatins in rder t understand that a blanket apprach may nt ensure success in event develpment and staging. One example f the differences is sprt events typically have a mre defined bid prcess with a clear path t attracting an event. 5. Risk management. The lack f clear wnership f r respnsibility fr majr event financial guarantees represents an issue fr event attractin and culd place Halifax at a cmpetitive disadvantage. 6. Event legacies. There is evidence that when planned, legacies frm majr events can benefit the cmmunity. A cnsistent apprach t planned legacies is a best-practice and can help t drive psitive utcmes frm each majr event. HRM will be hlding quarterly meetings ver 2017 with stakehlders t address these issues and: Establish a visin and mandate fr majr event develpment and staging fr all stakehlders and the cllective r shared visin; Evaluate the merits f a lead agency vs. shared leadership apprach t majr event develpment and staging; Assess the business case fr financial and human resurce requirements t supprt ptential slutins fr majr event develpment and staging; Cnduct a related risk assessment that includes financial, reputatinal, peratinal, and gvernmental alignment cnsideratins; and, Develp a cnsistent apprach t planned legacies (financial, sprt, cultural, scial and envirnmental) that can be adpted pre-bid and allw fr this imprtant element t becme part f the planning and executin f all majr events. A prgress reprt n this prject will be prepared fr Reginal Cuncil in , and any prpsed substantive changes t HRM s current apprach t majr event hsting will be submitted t Reginal Cuncil fr apprval. FINANCIAL IMPLICATIONS There are n immediate financial implicatins. COMMUNITY ENGAGEMENT There was n cmmunity engagement in the preparatin f this reprt. ATTACHMENTS ATTACHMENT 1: Turism Stakehlders in HRM ATTACHMENT 2: Event Hsting/Event Attractin Stakehlder Strategy Input Reprt (Fall 2016) HRM s Rle and Apprach t Turism, Festivals, and Special Events Standing Cmmittee Reprt February 16, 2017 A cpy f this reprt can be btained nline at then chse the apprpriate Cmmunity Cuncil and meeting date, r by cntacting the Office f the Municipal Clerk at , r Fax Reprt Prepared by: Jake Whalen, Senir Advisr, Ecnmic Plicy & Develpment, Reprt Apprved by: Originsl Signed Maggie MacDnald, Managing Directr, Gvernment Relatins and External Affairs, ATTACHMENT 1: Turism Stakehlders in HRM Name Entity Mandate & Related Activity HRM Financial Supprt Destinatin Halifax Sciety T prmte Halifax as a year-rund destinatin f chice fr business and leisure travelers. Destinatin Eastern and Nrthumberland Shre (DEANS) HRM Culture and Events Halifax Cnventin Centre Crp./ Trade Centre Limited 60% f the HRM Marketing Levy ($2.1 millin in 2016) + annual perating grant f $386K Sciety T market and administer turism n the Eastern and Nrthumberland Shres. $6,400 ( ) administered thrugh Destinatin Halifax HRM Service Area Jint Municipal- Prvincial Crp. T administer culture and events grant prgrams, including thse fr turism. Its Turism Grant Prgram is funded by the marketing reserve and supprts majr events that increase rm nights and create brader ecnmic impacts in HRM. T perate, maintain and manage the activities f the Halifax Cnventin Centre in a manner that will prmte and develp ecnmic develpment, turism and industry in the Prvince generally and in HRM in particular. /The new HCCC will likely perate Ticket Atlantic and the Sctiabank Centre. $425,500 prgram funding fr special events (Turism Grant Prgram) HRM-Fed-Prv cstsharing agreement n $169 millin cnventin centre / $643K ( ) Sctiabank Centre HRM Asset Cncerts, sprts and special events venue with a 10,000+ seating capacity. Self-sustaining mdel Halifax Partnership Extra-Prv T attract, retain and grw business, talent and investment in Halifax. $1.9 millin ( ) Limited Turism Nva Sctia (and Events Nva Sctia) Turism Industry Assciatin f NS Htel Assciatin f NS Waterfrnt Develpment Crp. Halifax Internatinal Airprt Authrity Halifax Gateway Cuncil Halifax Prt Authrity Partnership Crwn Crp. Grw turism and maximize its benefits in Nva Sctia $0 Sciety T advcate
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