TOURISM AT WORK

THE VISITOR ECONOMY IS A CORE COMPONENT

IN DIVERSIFYING ALBERTA BUSINESS

RAVELLERS TO AND WITHIN ALBERTA

are fostering an economy that benefits all Albertans. Royce Chwin, CEO of Travel Alberta, has
the insiders perspective. Alberta receives more than 33
million visits each year, generating $7.4 billion in revenue,
Chwin says. This sector supports 19,000 businesses and
employs more than 114,000 Albertans. The gains tourism is making are crucial at a time of adjusting oil prices,
as tourism is not as vulnerable as other industries to the
fluctuation. Tourism works for Alberta, says Chwin. This

Tourism at Work

industry drives more than visitation. It supports a province

where people want to live, work and play.
Cindy Ady, CEO of Tourism Calgary, agrees. Like Chwin,
she rattles off impressive stats easily, describing an industry that has become central to a diversified province and
the city. Last year we saw eight million visitors to Calgary
representing a growth of six percent from the previous
year, she says. Seventy thousand Calgarians are employed in tourism. Ady is bullish about the future of the
visitor economy.
travelalberta.com

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SHOW YOU THE MONEY

WHERE THEYRE SPENDING

Overnight
Average length
Average tourism
visitors
of stay (days) expenditures)
(per person per trip)

Average tourism
expenditures
(Per person per night)

Alberta 2.4

$200

$84

Rest of Canada

4.4

$433

$97

United States

$753

$146

$1064

$78

Overseas 11.7

Indeed, things have never looked sunnier for tourism in

Alberta. Its gaining recognition as a key economic driver, and
in 2013 the province launched a seven-year tourism framework
to grow the industrys revenues to $10.3 billion by 2020.
Benefits to Alberta businesses go beyond the direct impact
that visitors spend on activities, lodging, food and drink, and
transportation. Indirect impacts create profits and pay for salaries, communications, infrastructure and other business costs.
Then there are the induced effects of tourism on the local
economy the multiplier effect generating local demand for
housing, groceries, retail, dining, transportation, infrastructure
and personal costs. The multiplier effect of tourism means
the Alberta economy is supporting job creation, infrastructure
development and community building.
Tourism supports growth, crossing multiple industries. Direct
and indirect spending made for a value-added net economic
impact of more than $8.3 billion province-wide, and a GDP
contribution in Alberta that was $2.6 billion in 2012. Its a good
news story. The same things that benefit tourism are positive
for communities, too: improved infrastructure, a lively core
and increased amenities. The associated higher tax revenues
approximately $3.4 billion in total accrued to three levels of
government in 2012 encourage local development.
The majority of Albertas tourism operators are small and
medium-sized companies. Separately, they lack the clout
of larger corporate entities, but together they punch above
their weight. And its their very size and niche focus that add
attraction. Small operators and business owners offer an immersive experience in the local culture, says Maggie Davison,
vice-president of tourism at Edmonton Economic Development. She champions the small businesses that are catering to
visitors and recognizing an opportunity. Airports are opening
up to new travellers, and new Albertans are wanting to know
their province better, she says.
Davison would like to unveil Edmontons hidden gem: its
verdant river valley. We want to work with the City of Edmonton to improve accessibility, she says. Even among Edmontonians, the river valley is underutilized and Davison wants to
make it easier for entrepreneurs to get started there.
Both cities are the gateways to bolstering a nuanced industry. Its complexity is not well understood as an economic driver, Davison says. So we have tried to change our terminology
from tourism to the visitor economy. And it behooves us all
to understand the significance of the visitor economy.
Calgary and Edmonton are the entry points to greater visitation across the province. Visitors are looking for authentic,
travelalberta.com

F E AT U R E

In 2012, heres where visitors spent money:

30%
22%
17%
15%
10%
6%

Calgary and area

Edmonton and area
Canadian Rockies region
Alberta Central
Alberta South
Alberta North

rural Alberta experiences that are limited only by the imagination and resources of operators. These include farm-based
agritourism holidays, nature and ecotourism, walking, climbing
and riding holidays, adventure, hunting and angling, educational travel, special events, visitation from people interested
in lifestyle, arts and heritage. Operators across Alberta stand
to benefit.
Our membership comprises 96 per cent of available hotel
and motel accommodation in Albertas rural and urban centres, says Dave Kaiser, president and CEO of the Alberta Hotel
and Lodging Association. He says the visitor economy is a
competitive, evolving sector and Alberta is in a prime position
to elevate the visitor economy as a core pillar of diversification.

OVERSEAS VISITORS SPEND

$719 MILLION A YEAR IN ALBERTA.
Yes, we saw a downturn in hotel use with the current change
in oil and gas prices, but we saw a bright spot, too: our resorts
report a growth of 17 per cent.
Kaiser says that globally, tourism is growing by four per cent
annually. Demand is outstripping supply, he says. Marketing
efforts overseas are appealing to foreign visitors in several
international markets, focusing on the warmth, hospitality and
accessibility to Albertas natural attractions.
Overseas visitors spend $719 million a year in Alberta and
contribute more than $1.3 billion in revenue. International visitation currently accounts for four per cent of visitors and 18 per
cent of Albertas tourism revenue. Tourism is a complicated,
research-driven, industry, Calgarys Ady says. There are lots
of moving pieces. Its competitive, and marketing doesnt stop.
If left alone, competitors elsewhere will erode local tourism.
The challenge for Travel Alberta is to find the balance of near
and far marketing. Albertas advantage is its consistent and
compelling brand message aimed at the heart of target travellers. Through a pan-Alberta approach, the visitor economy is
poised grow, playing a leading role in a prosperous Alberta.

MAXIMIZE YOUR TOURISM POTENTIAL

Find out more at Travel Alberta
industry.travelalberta.com
(403) 648-1000
industry@travelalberta.com

Tourism at Work