ARCHIVED - Atlantic Canada Opportunities Agency

1.  Name of Horizontal Initiative

2.  Name of Lead Department

Atlantic Canada Tourism Partnership (ACTP)

ACOA

3.  Start Date of Horizontal Initiative

4.  End Date of Horizontal Initiative

5.  Total Federal Funding Allocation

April 1, 2003

March 31, 2006

$9.95 million

6.  Description of Horizontal Initiative

Tourism offers significant opportunities for economic growth and social development in Atlantic Canada. The sector is significantly more important to the economic prosperity of Atlantic Canada than it is in other Canadian jurisdictions. Visitor spending injects $3.179 billion into the regional economy. The sector employs over 114,000 Atlantic Canadians and represents 5.5% of the region’s GDP, compared with 2.5% nationally. For the last 15 years, ACOA has worked with provincial and industry partners to maximize the economic benefits of this sector.

The Atlantic Canada Tourism Partnership (ACTP) was established in 1991 to promote the entire Atlantic region as a tourism destination in targeted markets. The ACTP is a nine-member, pan-Atlantic partnership comprising ACOA, the four provincial tourism industry associations and the Atlantic provincial government departments responsible for tourism.

To continue making inroads in key markets, and to continue to bolster the region’s tourism industry, ACTP launched its sixth consecutive international tourism marketing initiative. This three-year project (fiscal years 2006-2007 to 2008-2009), valued at $19.95 million, supports integrated, research-driven, consumer, trade and media relations campaigns that aim to attract more visitors to Atlantic Canada from key markets in the United States, Europe and Japan.

The ACTP initiatives are:
•          United States Marketing Initiative – to effect greater tourism returns from the New England market; and
•          Overseas Marketing Initiative – to pursue the United Kingdom, German and Japanese markets through integrated marketing techniques.

The cost-sharing for this partnership is 50% ($9.975 million) from ACOA, 30% ($5.985 million) from the provinces, and 20% ($3.99 million) from the provincial industry associations. Contributions from ACOA and the provinces are in the form of cash; contributions from industry associations include cash, in-kind and other cash investments in relation to partnership-related activities (e.g. trade registrations and trade partnerships). See the ACTP website at http://www.actp-ptca.ca/.

7.  Shared Outcomes

The goal of the ACTP exemplifies the strategic outcomes for ACOA's priority of increasing revenues, profits, investment and wages.

The ACTP’s outcomes aim to:
•          increase Atlantic Canada’s competitiveness in targeted markets;
•          promote regional co-operation (federal/provincial/industry);
•          promote incremental marketing activities;
•          achieve economies of scale in marketing;
•          raise awareness of Atlantic Canada as a “top-of-mind” destination; and
•          increase tourism arrivals and tourism revenues for the four Atlantic provinces.

8.  Governance Structure

The activities of the ACTP are managed by a management committee comprising the presidents of the four tourism industry associations, the four provincial deputy ministers responsible for tourism, and two representatives of ACOA. The management committee is responsible for the administration and management of the partnership agreement, approving work plans and budgets, program evaluation, and overseeing the work of its marketing committee. The marketing committee undertakes activities that are co-ordinated by federal, provincial and industry representatives, and is responsible for implementing ACTP initiatives. A secretariat (annual budget $300,000) oversees the day-to-day operations of the ACTP and is responsible for implementing a communications strategy, as well as annual and end-of-agreement evaluations of the partnership.

9.  Partners involved in each program

ACOA is the sole federal funding department. The ACTP partners with the Canadian Tourism Commission on international research and marketing initiatives, on an ad-hoc basis.

Federal Departments/Agencies:
•          Atlantic Canada Opportunities Agency (50% of funding)
•          Canadian Tourism Commission (may partner on marketing initiatives on an ad-hoc basis)

Provincial Governments: (30% of funding)
•          Province of New Brunswick – Business New Brunswick and the Department of Tourism and Parks
•          Province of Nova Scotia – Department of Tourism and Culture
•          Province of Prince Edward Island – Department of Tourism and Department of Agriculture, Fisheries and Aquaculture
•          Province of Newfoundland and Labrador – Department of Tourism, Culture and Recreation

Private Sector Organizations: (20% of funding)
•          Hospitality Newfoundland and Labrador
•          Tourism Industry Association of Nova Scotia
•          Tourism Industry Association of New Brunswick
•          Tourism Industry Association of Prince Edward Island

10.  Name of Program

11.  Total Allocation

12.  Planned Spending for 2006-2007

13.  Actual Spending in 2006-2007

United States Marketing Initiative

$8.30 million

$2.77 million

$2.93 million

Results for 2006-2007

14.  Planned

15.  Achieved

Return on Investment: measurable tourism revenues generated per partner dollar invested in marketing/media campaigns

$14 to $1

$22.74 to $1

Number of information requests directly related to the project

180,000

222,379

Number of visitor parties directly related to the project

30,000

65,143

Dollar amount of annual visitor spending on goods and services directly related to the project

$38.8 million

$82.89 million

16.  Comments on Variances

ACTP developed an Internet conversion model to assess the impact of travellers who download tourism information directly from the Internet, rather than request literature through conventional means. The inclusion of these inquiries into its conversion research enabled the ACTP to measure the incremental impact of the Internet on media-generated information requests, party visits and related visitor spending/revenues.

10.  Name of Program

11.  Total Allocation

12.  Planned Spending for 2006-2007

13.  Actual Spending in 2006-2007

 Overseas Marketing Initiative

$1.225 million

$0.408 million

$0.448 million

 Results 2006-2007

14.  Planned

15.  Achieved

 Return on Investment: measurable tourism revenues generated per partner dollar invested in marketing/media campaigns

$6 to $1

$3.96 to $1

 Partnerships formed with overseas tour wholesalers

20

15

 Dollar amount of visitor spending on goods/services resulting from the overseas tour wholesaler partnerships

$2.4 million

$3.1 million

 16.  Comments on Variances

ACTP refocused its European Tour Wholesaler Partnership (ETWP) program on those partnerships having the greatest potential to generate the highest return. The number of partnerships was reduced from 20 (target) to 15 (achieved). These generated $3.1 million in incremental revenues for tourism SMEs in Atlantic Canada, and an ETWP-ROI of $10.06 to $1.00. The ACTP also invested in several non-ROI-generating activities (travel trade shows, media relations program, consumer website development research). These investments resulted in an overall ROI of $3.96, versus the $6.00 target.

17.  Results to be Achieved by Non-federal Partners (if applicable)

N/A

18.  Contact Information

Rob McCloskey, Director General,
Tourism Atlantic
Atlantic Canada Opportunities Agency
Telephone:  902-626-2479
E-mail:  rmcclosk@acoa-apeca.gc.ca

1.  Name of Horizontal Initiative

2.  Name of Lead Department

International Business Development Program (IBDP)
Formerly known as the International Business Development Agreement (IBDA)

ACOA

3.  Start Date
of the Horizontal Initiative

4.  End Date
of the Horizontal Initiative

5.  Total Federal Funding Allocation

April 11, 2005

March 31, 2010

$7.0 million

6.  Description of the Horizontal Initiative

The IBDP involves four Atlantic provincial governments and three federal departments: ACOA, Foreign Affairs and International Trade Canada (DFAIT) and Industry Canada (IC). The IBDP is intended to serve as an approach for co-ordination and consensus-building around international business development for the Atlantic region, a mechanism for building essential trade “infrastructure,” and as a project funding vehicle for groups of small and medium-sized enterprises (SMEs) to gain export experience. This program supports two priority areas for the Canadian government: sustainable economic growth, and income security and employment for Canadians.

The previous International Business Development Agreement (IBDA) was first signed in May 1994 for three years and $3 million. It was extended in March 1997 for a further three years and $2 million, and again in 2000 for a further four years and $8 million.

The current $10-million IBDP will continue the work of the partners until 2010. Funding for the agreement is shared 70/30 by the federal and provincial governments. The IBDP’s mandate is to undertake specific measures to optimize regional co-ordination on a pan-Atlantic scale and combine limited resources to co-ordinate trade-related activities. The commitment to this IBDP, with the increased funding allocation, attests to both the IBDA’s positive results and its significance for the future of the region’s international business development. See http://www.acoa-apeca.gc.ca/e/ibda/index.shtml.

7.  Shared Outcomes

The shared outcomes for the IBDP are as follows, and support ACOA’s priority outcome for trade:
• increase the number of new exporters;
• existing exporters reporting sales to new markets; and
• existing exporters reporting increased sales to existing markets.

8.  Governance Structure

ACOA is the lead organization for this initiative, and houses the secretariat responsible for administering the agreement. A management committee made up of a representative from each of the partners is responsible for the planning and managing of the agreement’s programs and the evaluation of projects.

9.  Federal Partners involved in each program

ACOA – lead department
Foreign Affairs and International Trade Canada – non-funding partner
Industry Canada – non-funding partner

10.  Name of Programs

11.  Total Allocation

12.  Planned Spending
for 2006-2007

13.  Actual Spending
for 2006-2007

International Business Development Program (IBDP)

$7.0 million

$1.8 million

$1.16 million

Results for 2006-2007

14.  Planned results - for the life of the agreement 2005 to 2010

15.  Achieved results
(2006-2007)

Data collection continues for two years after the term of the agreement. Therefore, the target date to fully achieve these expected results is in 2012.

Increase the number of new exporters

40 companies

2

Existing exporters reporting sales to new markets

75 companies

16

Existing exporters reporting increased sales to existing markets

150 companies

23

16.  Comments on Variances

Due to a delay in signing the agreement, fewer projects than planned were approved during 2006-2007. Therefore, less money was spent and fewer results were achieved.

Expected results are for the lifetime of the agreement, and data collection continues for two years after the term of the agreement. The target date to fully achieve these expected results is 2012.

17.  Results to be Achieved by Non-federal Partners (if applicable)

Results to be achieved are those indicated above.

Yearly expenditures for each provincial government partner are:
New Brunswick – $182,354
Newfoundland and Labrador – $182,354
Nova Scotia – $82,888
Prince Edward Island – $49,733

18.  Contact Information

Serge Langis, Director General,
Trade and Investment
Atlantic Canada Opportunities Agency
Telephone: 506-851-6240
E-mail: serge.langis@acoa-apeca.gc.ca

1.  Name of Horizontal Initiative

2.  Name of Lead Department

Team Canada Atlantic

ACOA

3.  Start Date
of the Horizontal Initiative

4.  End Date
of the Horizontal Initiative

5.  Total Federal Funding Allocation

April 1999

July 2010

$11.14 million

6.  Description of the Horizontal Initiative

Team Canada Atlantic is a partnership of ACOA and the four Atlantic provinces, with support from Agriculture and Agri-Food Canada, Industry Canada, and Foreign Affairs and International Trade Canada. TCA is committed to strengthening the trade and investment relationship between Atlantic Canada and the United States. The key objectives of the TCA missions are to enhance the capabilities and capacity of small and medium-sized enterprises (SMEs) to initiate and expand export activities in selected international markets, and to increase awareness of Atlantic Canada as a profitable place to do business. As such, TCA supports two priority areas for the Canadian government: sustainable economic growth, and income security and employment for Canadians.

The core of the TCA approach is the trade mission, which enables SMEs from across Atlantic Canada to meet with potential buyers, agents, distributors and strategic partners in the United States. The mission format features a comprehensive program that equips private sector participants with the knowledge, contacts and advice they require to make the best of their international opportunities before, during and after their ventures abroad. Missions also provide the Government of Canada and the Atlantic provincial governments with crucial opportunities to promote the region as a tremendous location for foreign investment. From 1999 to 2006, approximately $6.5 million was spent on TCA missions; as of March 2007, mission participants reported actual sales in excess of $40 million.

See the TCA website at http://www.teamcanadaatlantic.ca.

7.  Shared Outcomes

The TCA trade missions are focused on SMEs in Atlantic Canada, and are intended to assist SMEs to increase exports and attract investments in key markets. The mission objectives are to:
• increase export-readiness for Atlantic Canadian SMEs;
• develop new partnerships and alliances between Atlantic Canadian SMEs and companies in target markets; and
• increase Atlantic Canadian SMEs’ export sales to new and established markets, as well as raise awareness of Atlantic Canada in these markets.

As of March 2007, Team Canada Atlantic had completed 13 missions to United States markets, involving 490 companies and more than 3,380 business meetings, and resulting in excess of $40 million in actual sales.

8.  Governance Structure

A management committee, comprising senior officials of ACOA, Foreign Affairs and International Trade Canada, and provincial governments, is the decision-making body that directs and oversees the co-ordination and implementation of the TCA missions. The TCA organizing committee is responsible for organizing the missions, and includes representation from the four provincial trade departments in Atlantic Canada, Foreign Affairs and International Trade Canada, Agriculture and Agri-Food Canada, and the Team Canada Atlantic Secretariat. The secretariat, housed at ACOA, is responsible for the overall co-ordination and implementation of the TCA missions.

9.  Federal Partners involved in each program

ACOA
Foreign Affairs and International Trade Canada – non-funding partner
Agriculture and Agri-Food Canada (AAFC) – $6,000/mission

10.  Name of Programs

11.  Total Allocation

12.  Planned Spending
for 2006-2007

13.  Actual Spending
for 2006-2007

Team Canada Atlantic

ACOA $11.14 million
AAFC $132,000

ACOA $828,970
AAFC $12,000

ACOA $888,617 (including ATIP and IBDA contribution)
AAFC $13,752.50

Results for 2006-2007

14.  Planned

15.  Achieved

Increased export-readiness for SMEs

60

62

Forecasted export sales by SMEs

$20 million

$61.18 million

Increased number of potential buyers in export markets

180

279

16.  Comments on Variances

•         Planned and actual spending variances: Budget costs had not been finalized when the Agency produced its Report on Plans and Priorities. Upon completion of the project, the matchmaker costs and logistical costs were higher than expected.
•         Planned and achieved results (forecasted export sales by SMEs): One mission participant is projecting $35 million in sales from the Florida Tier 2 mission. It should be noted that companies have historically over-estimated their anticipated sales. Therefore, based on the average reported sales from previous TCA missions, it is anticipated that actual sales from 2006-2007 will be approximately $6 million.
•         Planned and achieved results (increased number of potential buyers in export markets): The TCA missions to Florida allowed the participating companies to explore two markets (Orlando and Miami), instead of the traditional one-market mission. In addition, the two TCA missions to Florida provided the participating companies with additional networking opportunities, which resulted in a higher number of potential buyers.

17.  Results to be Achieved by Non-federal Partners (if applicable)

N/A

18.  Contact Information

Serge Langis, Director General,
Trade and Investment
Atlantic Canada Opportunities Agency
Telephone: 506-851-6240
E-mail: serge.langis@acoa-apeca.gc.ca