1. World Trade Organization, Geneva, Feb. 232-24, 2001 Sectoral Economic Linkages and the Tourism Satellite Account: The Canadian Experience Presented by: Scott Meis

2. Outline Introduction- the Canadian TSA Rationale Key Concepts Key Economic Results Structural Findings and linkages Conclusions Canadian Tourism Commission

3. CTC Created in 1995 & 2001 OBJECTIVES: Market Canada as a destination BRAND Canada Provide accurate and timely information to aid decision making Introduction : Canadian Tourism Commission

4. Lack aggregate summary Lack view of industry Lack credibility Lack indicators of performance Incomparable with economy Incomparable with other sectors Incomparable with competitors Rationale : Information Gaps 1992/93 Inadequacy Of Data & Analysis Canadian Tourism Commission

5. Rationale - User Requirements Application Requirements (NTFTD, 1986) Application Requirements (NTFTD, 1986) Advocacy, planning and public awareness; Marketing; Investment, operations and management; Manpower, education and training Canadian Tourism Commission

6. French concept of tourism satellite accounts, 1979 Canadian Task Force feasibility study, 1985 Canadian TSA recommendation, 1989 Ottawa Conference TSA guidelines, 1991 WTO/UN recommendations,1993 Canadian TSA release, 1994 WTO\OECD conceptual frameworks, 1996-1999 Other national projects, 1996-1999 Nice, 1999 UN-SC endorsement, March 1, 2000 History Introduction1979-2000 Canadian Tourism Commission

7. Tourism Satellite Account Integrates/interrelates dispersed phenomena Separate linked extension of SNA Unit of analysis - monetary values Set of detailed statistics measuring structure and scope of tourism outputs, expenditures and employment. Tourism specific summary of observations Comparable with total economy Comparable to other industries Rationale: A New Statistical Instrument Canadian Tourism Commission

8. Canadian TSA: extensions National Tourism Indicators Government revenue module Tourism Economic Impact Model Benchmark updates Current Extensions

9. Tourism Commodities Tourism Commodity A product or service produced mostly for tourism, eg., tours on steam trains. Non- tourism Commodity A product or service not specific to or characteristics of tourism, eg., clothing, suntan lotion. Key Concepts: Canadian Tourism Commission

10. Tourism Industries Tourism Industry Any industry that serves visitors directly and would cease to exist or whose level of activity would be substantially reduced wiithout tourism, eg., hotels. Key Concepts: Canadian Tourism Commission

11. Commodity Class Tourism share ( % ) Key Concepts: Tourism Commodities Passenger transportation services 93 Accommodation92 Travel agency services98 Recreation & Entertainment24 Tourism Sector Commodities Excluded From W120 Other related services Food and beverage services21

12. Tourism Operator Tourism Operator/Business Any tourism enterprise or establishment within an empirically identified characteristic or specific tourism industry, eg., hotels. Key Concepts : Tourism Business Canadian Tourism Commission

13. Tourism Gross Domestic Product ( TGDP ) Tourism specific GDP Total value added by tourism and non- tourism industries generated by provision of goods and services to visitors Total value at purchasers price minus costs and taxes Key Concepts : Tourism GDP Canadian Tourism Commission

14. Definition of Employment Persons employed, whether full-time or part-time. Count only employment due to tourism demand Includes both tourism and non-tourism industries Key Concepts : Employment Canadian Tourism Commission

15. Canadas Overall Tourism Market Mix, 1999 112.5 million tourist* trips Inbound Tourism U.S.: 15.3 million overnight trips Overseas: 4.2 million overnight trips Outbound tourism 18.4 million overnight trips Key Economic Results : Old Measures Canadian Tourism Commission Domestic tourism 74.6 million overnight trips *tourist = 1+nights

16. Canadas Overall Tourism Market Mix, 1999 112.5 million tourist* trips Internal Tourism (Dom+IB) 94.1 million overnight trips National Tourism (Dom+OB) 93.0 million overnight trips International Tourism(IB+OB) 37.9 million overnight trips Key Economic Results : Old Measures Canadian Tourism Commission *tourist = 1+nights

17. Reciepts and Payments on Canadas Travel Account ($billions) Balance $-1.7 Payments Spending by Cdns $15.1 Key Economic Results : Old Measures 1999 Canadian Tourism Commission Receipts Spending by For Ress $16.8

18. Reciepts and Payments on International Passenger Fares ($billions) Balance $-1.0 Payments Spending by Cdns Ress on For Carriers $3.7 Key Economic Results : Old Measures 1999 Canadian Tourism Commission Receipts Spending by For Ress on Can. Carriers $2.7

19. Industry Performance 1999 Industry Performance 1999 Key Results: New Measures Tourism spending $50.1 Foreign spending $15.3 Canadian spending $34.8 Tourism GDP $20.3 % of total GDP2.5% % of services exports 30% Canadian Tourism Commission

20. Business Sector Share of GDP by Industry Key Results: Tourism: 11 th largest industry in 1999 Canadian Tourism Commission

21. Composition of Tourism Demand in Canada Structural Linkages: Total Demand Canadian Tourism Commission

22. Tourism GDP Share by Industry Structural Linkages:Tourism GDP Total Tourism GDP: $ 20.3 Billion (1999) Canadian Tourism Commission

23. Food and beverage service (92): 57 99.0 Recreation and entertainment (85,96): 19 99.0 Accommodation (91): 12 97.6 Transportation (45): 6 98.9 Travel services (96): 5 99.5 Other 1 --- Total Enterprises (1999) 159,000 * 1980 Standard Industrial Classification ** Less than 100 employees Distribution of Tourism Businesses by Industry *and Size Structural Linkages: Business Characteristics % of Total % SMEs** Canadian Tourism Commission

24. Tourism Employment by Industry 524,000 Jobs Structural Linkages: Employment Canadian Tourism Commission

25. $12.40 $8.90 $1.60 FederalProvincialMunicipal $23 PER $100 DOLLARS TOURISM SPENDING TOTAL = $15.4 Billion (1999) * Adjusted = $30 /$100 spending Structural Linkages: Government Revenues Canadian Tourism Commission

26. Inputs to Canadian Tourism Sector Selected Industries in 1994 Selected Commodity Purchases Sectoral Linkages: Intra-sectoral purchases

27. 1994 External Inputs to Canadian Tourism Sector Selected Industries Selected Commodity Purchases Sectoral Linkages: Extra-sectoral purchases

28. Total Tourism Spending in Canada by key Commodities 1999 in Review Commodity Categories Performance Trends:

29. Tourism Exports Spending in Canada by Key Commodities 1999 in Review Performance Trends: Commodity Categories

30. Cyclical Deviation Tourism Hard Hit by Domestic Business Cycle Performance Trends: Canadian Tourism Commission

31. Performance Trends: Tourism Exports a Growth Leader Canadian Tourism Commission

32. Impacts : Reduced Deficit * Estimate Source: Statistics Canada Billion -6.4 92 -5.9 93 -4.1 94 -3.2 95 -3.4 96 -3.5 97 -1.7 98* Travel Deficit Canadian Tourism Commission

33. 1992 1999 New Direct Jobs 65 000 Impacts : Employment Thousands * Third quarter Source: Statistics Canada 92939495969798* 450 475 500 525 550 524 000 Employment + 14% 459 000 Canadian Tourism Commission

34. 1999 20.1 $B 1999 20.1 $B 1995 16.2 $B 1995 16.2 $B 1999 2.5% 1999 2.5% 1995 2.3% 1995 2.3% Tourism GDP ( $B ) Tourism GDP Ratio Tourism GDP Impacts : TGDP Growth Canadian Tourism Commission

35. Medium & long term – UN-SC endorsement of revised definitions and classifications – Developing extensions and applications – Labour force module – Tourism capital formation module – Tourism balance of payments – Links with environmental accounts Research and Development International Vision - Future challenges Canadian Tourism Commission

36. `TSA is an invaluable tool in moving tourisms political agenda forward The TSA also helps industry members define themselves as part of tourism TSA raised the profile of tourism Debra Ward,President of TIAC World Conference on the Economic Impact of Tourism, France, 1999 Who knows? … Who cares? Canadian Tourism Commission

37. Canada 1994 Sweden1996 Norway1997 Poland1997 Singapore1997 USA1998 Mexico1998 New Zealand1998 Australia2000 SpainIn progress ThailandIn progress Who knows, who cares: Follow the leader Canadian Tourism Commission

38. Conclusions Met user requirements Defined tourism products/services Defined tourism industries Credible measures Comparability with total economy Comparability with other industries Potential foundation of trade negotiations Potential tool for monitoing international trade perfomance Conclusions

39. WEB: canadatourism.com CTX: http://www.ctc-ctx.com E-Mail: meis.scott@ic.gc.ca Thank you for your attention Canadian Tourism Commission