Tourism has long been the keystone of the economy of Muskoka
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- Madeleine Randall
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1 Muskoka Tourism Marketing Agency (MTMA)
2 Established Program District Council created the MTMA in 1985 Independent, non-profit destination marketing organization (DMO) Established as a membership organization with the District identified as a founding member (356 industry members) Established as an arm s length organization with a board of directors in order to engage tourism representatives
3 Tourism has long been the keystone of the economy of Muskoka 2009 Economic Strategy findings: Tourism is a significant sector for jobs and represents 57% of the economic base Recommended d Muskoka k fully engage tourism, seasonal and retirement sectors as its core business Strong marketing is critical to retain and increase visitation and deal with growing competition 3
4 Corporate by-laws: Guide board business and operation Identify the District as the founding member with 2 board directors appointed by District Council Identify that other membership will be by application Board of directors elected annually from membership Industry sectors Geographic representation 4
5 Primary role is to market Muskoka to: Increase visitation to the region Generate jobs and economic activity Compete with other regions Provides a voice for Muskoka and promotes the Muskoka brand Services: Marketing Visitor services (2 Visitor Centres) Membership services Report to PED Committee on a quarterly basis 5
6 As the founding member, the District provides annual funding to MTMA 2005 Council direction to include an annual Consumer Price Index (CPI) increase to keep funding current and avoid large one time increases MTMA seeks other funding for marketing programs: Membership fees Special marketing programs DMO Status Ontario Tourism Marketing Partnership (OTMP), FedNor and G8 6
7 2012 Marketing Plan Service Review Template Appendix III 2011 Activities summary Service Review Template Appendix IV Key Programs Website and on-line mapping Visitor guide and map distribution Media assistance Consumer shows Special marketing programs Visitor Centres (2011 visitation 63,000) 7
8 Policy and Programs - research such as the Economic Strategy and Official Plan policy related to tourism Finance - grant administration Facility Services - oversight of the upgrades to the Visitor Centre and the construction and maintenance of the gateway signs Legal - assistance with by-laws, lease documents and funding agreements 8
9 Chambers of Commerce provide marketing services Some Areas have visitor centres or services Economic Development Officers provide tourism and market programs 9
10 Tourism marketing and management undertaken at various geo-political levels Provincial Region - Explorer s Edge (RTO 12) Independent, non-profit destination management and marketing organization (2010) Muskoka, Parry Sound, Algonquin Park and Almaguin Highlands Broader mandate than marketing Funded by the Province through a transfer agreement ($1.25 million in 2011) Board made up of only tourism representatives 10
11 Other Provincial organizations: Ministry of Tourism Ontario Tourism Marketing Partnership (OTMP) markets Ontario to attract visitors to Ontario Tourism sector organizations i (Resorts Ontario or Attractions Ontario) Canadian Tourism Commission (CTC) promotes visitation to Canada 11
12 Tourism businesses in Muskoka k benefit from the marketing efforts of MTMA and many are members of the organization Visitors use the Visitor Centres and the MTMA website MTMA works with other community organizations on projects related to tourism (promotion of travel by rail) 12
13 2011 Budgeted Net Levies MTMA, $301,945
14 1994 District assisted MTMA in obtaining funding in order to construct the Visitors Centre Federal/Provincial/Municipal program used to finance the project cost of just over $600,000 District provided 1/3 ($215,000) and MTMA agreed to pay it back in two parts. $115,000 was to be paid back through h lease payments (approximately $42,000 remaining) Lease $1per year once paid $100,000 to be paid back through fundraising efforts (approximately $55,000 remaining)
15 MTMA OPTIONS FOR COST SAVINGS AND SERVICE DELIVERY 1. Eliminate MTMA funding Description: Eliminate funding to MTMA Rely on the marketing initiatives of Explorer s Edge (RTO 12), Chambers of Commerce and Area Economic Development Departments or Committees Rely on the visitor services of the Chambers of Commerce and Area Municipalities
16 MTMA OPTIONS FOR COST SAVINGS AND SERVICE DELIVERY 1. Eliminate MTMA funding Impacts: Reduce District expenditures ($301,945) MTMA may not be in a position to continue operation based only on member funding No entity to promote the Muskoka brand or provide a Muskoka visitor service This could result in an erosion of visitation and negatively affect this sector and jobs in Muskoka Perception may be that the District no longer supports the tourism industry
17 MTMA OPTIONS FOR COST SAVINGS AND SERVICE DELIVERY 2. Examine other models to promote tourism in Muskoka Description: Review and evaluate other models to promote tourism in Muskoka Examine the roles, responsibilities and relationships of other tourism organizations Important to provide clear objectives for such a review Outside expertise to undertake such a review would be required
18 MTMA OPTIONS FOR COST SAVINGS AND SERVICE DELIVERY 2. Examine other models to promote tourism in Muskoka Impacts: A review of the existing arrangement created in 1985 seems appropriate A different model may not reduce District i t expenditure A tourism organization would continue to promote the Muskoka brand The response from MTMA members may be negative, but could be positive depending on the outcome Funding would be required to undertake such a review and to implement any recommendations
19 MTMA OPTIONS FOR COST SAVINGS AND SERVICE DELIVERY 3. Update the current arrangement with MTMA Description: Examine the role of MTMA in relation to other tourism organizations Establish a performance based funding arrangement with a funding agreement for greater accountability Define objectives, specific programs and activities Specify outcomes and reporting requirements Identify funding triggers
20 MTMA OPTIONS FOR COST SAVINGS AND SERVICE DELIVERY 3. Update the current arrangement with MTMA Impacts: A review and update to the arrangement created in 1985 would seem appropriate The funding to MTMA may not tbe reduced d Better accountability would be provided
21 Discussion and Questions?
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