Uncommon Potential
Background: The Tourism Vision Planning Process
Vision 2020 is the result of considerable research, analysis, and consultation including:
Government and Industry Leadership. The vision was developed under the guidance of the Vision Steering Committee with representatives of the Department of Tourism, Culture and Recreation, and the tourism industry association, Hospitality Newfoundland and Labrador (HNL).
Consultant Expertise. An independent team of consultants reviewed external tourism initiatives to ensure our vision was guided by market trends, competitive experience offerings, and best practices.
Industry Consultation. Province-wide consultation workshops and individual meetings were held with industry participants, tourism-related industry organizations, and government representatives to identify priority issues and opportunities. The findings culminated in the foundation for Vision 2020.
Vision 2020 provides an overview of the guiding principles and broad action plan of the tourism vision to develop Newfoundland and Labrador as an exotic and leading travel destination. It is a product of the consultation process and was prepared under the guidance of the Vision Steering Committee.
PLANNING CONTEXT
Tourism in Newfoundland and Labrador: The Economy & Future Growth
Tourism is the fastest growing economic sector in the world, leading the way in foreign exchange earnings and job creation. It’s also the world’s largest export earner.
In Newfoundland and Labrador, tourism is also a vital industry. It is a large and growing sector that is an important source of employment for our province, and a crucial part of our future economic prosperity.
Undoubtedly, Newfoundland and Labrador is in an enviable position. Our natural, yet surprisingly, exotic destination offers unique, compelling experiences that are differentiated from traditional travel destinations. Our rugged landscape comes with 20,000 miles of dramatic coastline, infused with rich icons of whales, icebergs, and wildlife. It’s a place steeped in creativity with a vibrant spirit, engaging culture, and an ancient history. A place where you can, at the same time, lose yourself and find yourself.
But in an increasingly competitive global marketplace, there is no room for complacency. We must strive to be the best by offering a diversity of unique, high-quality experiences that appeal to our visitors’ sense of a personal and rewarding journey. We must also continue to support, develop, and invest in our tourism industry so we can meet new and future challenges and opportunities.
Tourism has many advantages for Newfoundland and Labrador:
Tourism brings a significant injection of new money into Newfoundland and Labrador. In 2007, an estimated 490,100 non-resident visitors contributed approximately $357 million to our economy. And non-resident visitation has increased by 15% since 2003.
The resident market is also a substantial component of our tourism industry, representing over 55% of total tourism spending in the province (2007). This market continues to play a major role in sustaining tourism business outside of peak season.
Tourism is a key driver of meaningful jobs, creating over 12,730 sector-related jobs annually. It fuels provincial economic growth, builds regional pride, and creates employment opportunities that encourage both urban and rural renewal. It helps drive investment in leisure, recreation, and cultural facilities that benefit both residents and visitors. And it supports 2,400 small businesses that contribute to our economy and generates tax revenue to help financially support vital services such as health care and education.
MARKET CONTEXT:
Emerging Global Trends
“It is not the strongest of the species that survives, nor the most intelligent that survives.
It is the one that is the most adaptable to change.”
- Charles Darwin
Though Newfoundland and Labrador is one of the most unique and compelling tourism destinations in the world, we are not immune to changes in the marketplace. Our future success depends on our ability to anticipate and adapt to global trends and market changes.
Existing and emerging destinations are competing vigorously to offer a range of diverse experiences and activities to an increasingly sophisticated traveller. Tomorrow’s travellers will demand higher levels of control, comfort, security, and personalization from their travel experiences. In the face of increased global competition, winning the hearts and minds of travellers has never been so critical.
Strong economic conditions and personal disposal income will remain major tourism drivers. Economic volatility is the biggest influencer of travel demand as it translates into changes in consumers’ discretionary spending patterns.
Ongoing price fluctuations in fuel and exchange rates will also impact vacation travel decisions. Exchange rates, in particular, can impact total visitation as well as how much visitors spend during travel.
To sustain and grow our competitive position, Newfoundland and Labrador must address the following key emerging market trends:
Increased Global Competition. An increasing number of global destinations that are well-funded, heavily advertised, and already well-known are vying for travellers’ attention and their discretionary income. Global competition is strongly influenced by how much our competitors spend on marketing and the development of new products and experiences.
Online Planning and Booking. Information technology advances have revolutionized the way people research and book their travel. Today, over 80% of travellers conduct general trip planning and travel research online. The growth of the internet has also exponentially compounded the options, conveniences, and bargains available to travellers.
Quality Service. The tourist marketing battle is shifting from competitive pricing to a growing demand for service quality. The more people travel, the more they expect higher levels of service. The demand for quality, value, and authentic experience has never been greater.
Environmental Consciousness. Climate change has emerged as a significant environmental concern and travellers are becoming more conscientious of their footprint. There is also an increased demand for sustainable approaches to preserve the natural and cultural heritage of a destination.
Safety and Security. There is a growing demand for safe and secure vacation experiences that are free from natural disasters, civil unrest, and terrorist threats. More than ever, travellers are looking for a peaceful ‘haven’ where personal safety is not a concern.
Changes in consumer behaviour and demographic shifts taking place in the wider market will also play a key role in future tourism trends. These include:
The Changing Traveller. An aging and active population, a trend in increased discretionary income, and a growing trend towards non-traditional households have all impacted people’s leisure time and choice of activities. It’s also led to increased consumer interest in exploring new, ‘off the beaten path’ places, and to trends such as intergenerational travel groups.
Experience Travel. Travel is driven by a deep emotional motivation to experience new people, cultures, and places, and perhaps to discover something within ourselves along the way. There is a growing demand for unique, high-quality experiences, even at a premium price, as well as cultural and nature-based activities.
Individualism. More and more, travellers are seeking customized, engaging, and original experiences that have a sense of unpredictability and authenticity. Natural and exotic destinations are the alternative choice to the prepackaged, and often times ‘plastic’ tourist destinations.
Redefined Holidays. People are looking for ways to enjoy quality time with friends and family in trips that are easily planned, shorter, and more frequent than the traditional once a year, two-week vacation. There is also a growing traveller appetite for sabbatical vacations or a trip of a lifetime.
In an increasingly competitive marketplace, these emerging global trends present Newfoundland and Labrador with an opportunity to tap into the needs and desires of future travellers through the way we communicate with them, and through the unique experiences we offer.
OUR CHALLENGES & OPPORTUNITIES
Developed carefully, tourism can be a sustainable industry with far-reaching economic, social, and cultural benefits. It has the ability to further generate substantial economic returns long after non-renewable resources have been extracted from our province.
Our industry also has a vital role to play in addressing the challenges of urbanization. Rural communities are the heart and soul of our province, and the foundation of our travel experiences. By investing in our tourism industry, we are investing in rural Newfoundland and Labrador, and keeping our communities alive and vibrant.
There are many opportunities to consider and challenges to overcome on our journey to doubling our industry potential and revenue by 2020. They include:
CHALLENGES
Travel Barriers. Real and perceptual travel barriers obstruct our efforts to increase non-resident traveller visitation and tourism revenues for Newfoundland and Labrador.
The reality is that it takes deliberate planning and determined effort to visit here. For Newfoundland and Labrador, there’s no such thing as an accidental tourist.
Travel distance, travel time, travel cost, and travel access are significant barriers for visitors, and a major competitive disadvantage for our industry. Our challenges do not end there. A short peak season, capacity constraints during peak season, infrastructure and facility deficiencies, and underdeveloped tourism ‘products’ and experiences make a tough job even more difficult.
Access Issues. Long-standing access issues must also be resolved as the cost, availability, and quality of air, land, and water access continue to be significant impediments to the growth of our industry. While we cannot control the business decisions relating to access, we can help identify and implement solutions based upon a collaborative business-case approach that is relevant for transportation partners and the tourism industry.
Slowed Growth. While our tourism industry grew by 15% since 2003, this growth has now slowed. Global economic trends, an increasingly competitive landscape, and shifting consumer demographics and demands have all impacted our growth.
Despite these formidable barriers and challenges, there are significant opportunities open to Newfoundland and Labrador; opportunities that we need to aggressively capitalize on to safeguard our industry and to ensure future growth and success.
OPPORTUNITIES
Marketing Our Brand. The ‘Find Yourself Here’ marketing and advertising campaign has put Newfoundland and Labrador higher than ever on travellers’ radar as being a distinctive destination. And it’s created exceptional, valuable ‘buzz’ among our biggest opportunity groups.
As a result, Newfoundland and Labrador has been named one of the top ‘new’ and ‘undiscovered’ travel destinations on several key travel lists from industry leaders like Lonely Planet and Fodor’s.
Our distinct brand positioning and personality, and the creative strategy and execution that romances, reflects, and expresses it, has captured the hearts and minds of travellers, and strongly differentiated our province from competing destinations.
The campaign lures travellers by expressing our natural creativity, and the uncomplicated and somewhat spiritual feeling you get when you’re in Newfoundland and Labrador. And it evokes a rich emotional response and desire to visit this naturally exotic and unexpectedly different place.
In an expanding global marketplace, however, the challenge to maintain growth and increase market share is unrelenting. As competitors commit significant resources to enhance their marketing capability, the battle intensifies for share-of-voice in an over-communicated world.
Our Target. Continued success requires investment in our rich, emotional, and highly differentiated brand image that speaks to our target audience. Our biggest opportunity group don’t see themselves as ‘tourists’, but as increasingly sophisticated and experienced ‘travellers’ seeking more unusual places and experiences ‘off the beaten track’.
Development. Along with consistent brand differentiation, developing our existing tourism resources creates even further opportunity for growth within our industry. These valuable resources include:
► Highly skilled, dynamic, and professional workforce to meet the growing demand for the delivery of quality services, products, and experiences.
► World-class infrastructure to deliver on our brand promise, allowing for a quality travel experience, and stimulating travel throughout the province.
► Easily accessible products and experiences that reflect our unique natural and cultural heritage and resonates with travellers.
► Advances in technology and communications infrastructure to improve all stages of online visitor engagement.
► A broad platform to attract travellers beyond the overall destination and into our regions, communities, and places of business.
Investment. Now, more than ever, strategic investment is required to meet travellers’ demands for rich emotional experiences that deliver on our ‘creativity’ brand promise.
Partnerships that align and focus both government and tourism industry investment decisions are essential.
We must invest in increasing operator use of web and online booking technology to keep pace with the technology advancements demanded by the market. Increased use of technology will also enable access to information and resources – important operator assets.
We must also invest in elevating the image of the tourism industry. There is growing pride in our unique culture, heritage, and our natural beauty, which tourism helps preserve and protect. We need to take advantage of the opportunities to deepen citizen and community engagement and ownership of the value of tourism. We need to showcase tourism as a vibrant and sustainable industry with dynamic employment opportunities for our people.
Meeting the challenges and exploiting the opportunities to grow our industry require strong leadership and solid partnerships between the public sector, business community, and the people of Newfoundland and Labrador.
