PROPELLING RECOVERY

ANNUAL REPORT 2020CONTENTS

Financial summary

Management responsibility statement40 41 Independent auditor’s report 42

Context Statement of financial position 45

Global landscape 12 Statement of operations 46

Tourism in Canada 14 12 Statement of remeasurement gains and losses 47 Introduction Prospects for recovery 17

Message from the Statement of change in President & CEO 46 net financial assets 47 Statement of cash flows 48

Notes to the financial statements 49

Management discussion & analysis

IMPRINT Strategic performance 19 Photos About us Brian Caissie – Cox Bay, Tofino, British Columbia (Cover); Noel Mission 8 Management controls 32 Hendrickson – Banff, Lake Louise Tourism (4/5); Chris Amat – Pursuit 18 Banff Jasper Collection (10/11); Destination Canada (8/9, 12/13, 14, 17, 18/19, 20, 21, 22, 23, 25, 26l, 27r, 31); Discover Halifax (16); Keith Tanner, Mandate 10 Financial overview 35 Tourism London Ontario (17l, 27l); Caroline Perron (17r); Riley Smith 8 Photo – Oddfellows Barbershop (26r), Dilly Dally Cafe (27r); Via Ferrata Who we are 10 / Mt Norquay (32); Dave Daley, Travel Manitoba – Wapusk Adventures Governance (35); Ryan Bray, Jasper National Park, Parks Canada (37); Calgary Tower, Tourism Calgary (39); Golden Tourism (73); Chris Amat – Central Funding sources 11 Legislative framework 74 Library, Tourism Calgary (76 top); LoveYYC by Mikaela MacKenzie – Peace Bridge, Tourism Calgary (76 bottom); Reuben Krabbe (78/79) Board of directors73 74 Published by © March 2021, Destination Canada Executive team 77 OUR ASPIRATION IS TO ENHANCE THE QUALITY OF LIFE OF CANADIANS

AND ENRICH THE LIVES OF VISITORS.

5 DESTINATION CANADA Annual Report 2020

Message from the President & CEO

MESSAGE This year, the entire world was In Canada, tourism has been a dominant industry, MESSAGE Knowing that recovery would begin at a hyper-local host visitors again. But we are a strong industry and impacted by the health, economic contributing $105 billion to the national economy in level, our messaging in the domestic market focused we’ve weathered many storms. Now, as we move 2019. For long it has employed one in 10 Canadians, on inspiring Canadians with ideas for travelling in their through recovery from the worst crisis to affect our and social effects caused by but since the onset of the pandemic, tourism workers own backyard, restoring confidence so they could industry in nearly a quarter of a century, the resilience, the COVID-19 pandemic. While have been disproportionately affected. Over 440,000 understand how to travel while keeping with health strength and compassion of Canadians everywhere industries everywhere have jobs have been lost from the industry alone — many of and well-being protocols, and reminding them of will help us thrive once again. Together, let’s rebuild to which are at risk of never coming back. the value that tourism brings to our communities. be a more competitive sector — one that can be an endured loss, travel and tourism even more powerful ‘force for good’ for people and continues to be among the most In addition to the devastating loss of so many industry At a time of such shock for our industry, extending the communities across our nation. affected sectors. jobs, the quality of life of Canadians everywhere has buying power of our Canadian partners was crucial. been impacted. Despite initial signs of recovery, tourism That’s why we provided $31.4 million in matched funding businesses continued facing significant financial stress, to provinces , territories and the Indigenous Tourism Tourism was hit first, hit the hardest leading to many businesses having to close their doors, Association of Canada to support their own domestic and will feel the pain the longest. some permanently, throughout the year. This resulted in marketing recovery efforts. This marketing was carried a decline of 9% in active businesses from January to out at the local and community levels and reflected the November 2020 — the greatest decline of all business varying health restrictions of their respective regions. sectors. Although International travel was brought to a virtual standstill, maintaining our key account relationships in Tourism builds personal connections, supports the our global markets was paramount to ensure that Canada social and economic wellbeing of our communities, remains top-of-mind once travel restrictions ease. facilitates improvements to infrastructure and transportation systems, and expands direct foreign I want to thank the talented team at Destination Canada investment. Tourism is a powerful engine that for their tremendous work over the year, and to our creates a ripple effect of economic, socio-cultural and Board of Directors for their dedicated leadership at environmental benefits in communities big and small, a time when it was needed most. all across our nation. The pandemic’s blow to tourism has affected the quality As lockdowns around the world and here at home of life of each and every person, across the country. took hold, we knew we had to act fast to support an The 2020 year wasn’t an easy one, and we still have industry on the brink of collapse. We took immediate a long road to recovery. It will require building up action to respond to the information needs of our consumer confidence to travel again when restrictions industry and government with an expanse of timely, allow, and reminding residents of the value of tourism to Marsha Walden reliable data. our communities when we are ready to welcome and President & CEO

6 7 ABOUT US

Our mission is to influence supply and build demand for the benefit of locals, communities and visitors through leading research, alignment with public and private sectors, and marketing Canada nationally and abroad. In collaboration with our partners, we promote Canada as a premier four-season leisure and business tourism destination around the country and world. DESTINATION CANADA Annual Report 2020

ABOUT US Mandate Mandate Who we are Our legislative mandate is to promote the interests of the tourism industry and to market Canada as a desirable tourist destination.

Specifically, we have a mandate to: • sustain a vibrant and profitable Canadian tourism industry; Who we are Funding sources • market Canada as a desirable tourist destination; • support a cooperative relationship between the Destination Canada’s approach We are financed primarily through private sector and the governments of Canada, focuses on markets where parliamentary appropriations the provinces and the territories with respect to Canadian tourism; and Canada’s tourism brand leads and operate on a calendar fiscal • provide information about Canadian tourism to the and yields the highest return on year. In 2020, we received a private sector and to the governments of Canada, investment. parliamentary appropriation the provinces and the territories. of $95.7 million. We promote Canada as a premier four-season leisure tourism destination around the country and world in Through our co-investment strategy, we create Australia , Canada, China , France , Germany , Japan , partnerships with the public and private sectors Mexico , United Kingdom and the United States. In to leverage our core appropriations and extend our addition, our Business Events team leverages in-depth global marketing reach. Due to the severe impact of global market analysis to target international clusters COVID-19 on our partners’ budgets, partner revenues aligned with Canada’s priority economic sectors. were $3.1 million, bringing our total parliamentary appropriation and partner revenues for 2020 to We believe that Canada’s diversity, its greatest asset, is $98.8 million. also what touches travellers’ hearts most deeply. To that end, we are committed to inclusive leadership within our workforce, workplace, and interactions with partners and travellers alike.

10 11 CONTEXT Global landscape

The 2020 year has been marked as the worst year in tourism history.

With grounded flights, closed hotels and travel restrictions in place across the globe, the travel and tourism sector is, by far, the most affected sector.

According to the United National World Tourism Organization (UNWTO), there were one billion fewer international arrivals in 2020, representing a 74% drop from 2019 levels1. The COVID-19 pandemic is the most severe global health, social and economic crisis in modern day history, creating an unprecedented fall in demand due to widespread travel restrictions.

The collapse in world travel represents an estimated loss of $1.3 trillion USD in export revenues — more than 11 times the loss recorded during the 2008 global financial crisis. This shock to the sector has further put at least 100 million direct jobs in tourism at risk, many of which are in small- and medium sized enterprises2.

Prospects for a rebound to 2019 levels could take several years and is likely not expected before 2023. However, as rollouts of the vaccine continue, experts predict a gradual return of consumer confidence in travel. They anticipate that demand will centre on open-air and nature-based tourism activities and that travelling domestically will be a primary focus3.

1 — UNWTO World 2 — Ibid 3 — Ibid Tourism Barometer, UNWTO, Update January 2021. DESTINATION CANADA Annual Report 2020

group gatherings and activities in most jurisdictions centres have fallen an estimated 79% in the last year, have resulted in unimaginable challenges for this amounting to a total loss of $2.3 billion. industry. Almost all events for 2020 since the pandemic Tourism in Canada began — nearly 3,500 — were cancelled, in addition to Without support from federal programs, the pandemic’s some planned future events as far as 20244. impact on jobs could have been much worse. Early on into the pandemic, the Government of Canada took CONTEXT Similar to countless nations around the world, the pandemic has had CONTEXT These cancellations have hurt the accommodations significant and decisive action to broadly support Tourism in Canada Tourism in Canada the greatest impact on Canada’s tourism sector. The state of the visitor industry, particularly in Canada’s major cities. Montreal, Canadians and businesses facing hardship as a result Toronto and Vancouver have been hit the hardest and of the outbreak. Their broad federal economic response economy is facing an unprecedented crisis and is more dire than the recorded the lowest occupancy rates of any region in plan has provided immediate relief and financial aid impacts following 9/11, the SARS outbreak and the 2008 global financial Canada. Revenue for downtown hotels in these city to Canadians adversely affected. In particular, as of crisis combined.

TOURISM BUSINESS (CLOSURES)/OPENINGS, 2018 – 2020 (in thousands)

Source: Statistics Canada. Table 33-10-0270-01 Experimental estimates for business openings and closures for Canada, provinces and territories, census metropolitan areas, seasonally adjusted

Despite initial glimmers of hope and recovery, losses 2018 2019 2020 5 to Canada’s tourism sector in 2020 are the worst on record, alongside business closures and rising 1,270

unemployment. Ninety-nine percent of all tourism 554 Jun Nov enterprises are small- and medium-sized and many 0

lacked the resources to sustain themselves through Dec Dec a lengthy disruption.

(5) There is a similar parallel in regards to labour.

Unemployment rates in the tourism sector remained )

high at the end of 2020 and have surged past the 7,198 ( national unemployment rate (10)

Alongside declines in tourism revenue, the pandemic

has brought business events to a halt. Canada had (15) been experiencing remarkable growth in this area over the last decade, creating economic prosperity for many Canadian destinations. Connecting ideas and people (20) from around the world, business events are economic

catalysts for many cities, and springboards for ) innovation and investment in key sectors across 21,688 ( Canada. However, restrictions on border access, (25)

14 15 4 — Destination Canada. Based on January 2021 data from 34 Canadian urban destination marketing organizations and convention centres. DESTINATION CANADA Annual Report 2020

November 2020, approximately $9.7 billion has flowed to businesses in the tourism and hospitality sectors through various financial assistance programs, including through the Canadian Emergency Wage Subsidy, Prospects and the Regional Relief and Recovery Fund which has provided $202 million in support to nearly 3,000 for recovery tourism-related businesses.

CONTEXT CONTEXT Tourism has been disproportionally impacted by COVID-19, and we Tourism in Canada Prospects for recovery know that the severity of losses within the tourism sector will take years to rebuild. It took 10 years to recover after 9/11. The crisis is far from over and prospects of a rebound in 2021 have worsened5.

Prior to the COVID-19 pandemic, Canada had been experiencing five consecutive years of growth. Now, recovery to 2019 levels is estimated to take until 2025, under a scenario where borders re-open in October 20216.

CANADIAN UNEMPLOYMENT RATES However, we also know that the majority of Canadians are eager to get back out and explore. They will feel Total Labour Force Tourism Industry Labour Force Source: Tourism HR Canada most comfortable travelling close to home and will begin in their own backyards. This domestic tourism is what will be needed to stimulate the visitor economy 35% and bring strength back to thousands of businesses. PEAK IMPACT 29.7 May 2020 Canadians can play a critical role in bolstering the 30% tourism economy, creating jobs and supporting local businesses by keeping their tourism dollars in Canada. 25%

13.8 14.6 15%

10% 8.0 5,1 4.5 5%

2019 Dec 2020 Dec

16 17 5 — UNWTO World 6 — Destination Tourism Barometer, Canada Research UNWTO, Update January 2021. MANAGEMENT

DISCUSSION & Strategic ANALYSIS performance

In mid-March 2020, the COVID-19 pandemic brought all travel around the world to a near standstill. The high degree of uncertainty associated with the pandemic meant that we had to rapidly pivot operations, adapt our strategies to understand the impacts of COVID-19 at home and in our markets, and put a plan into action to support domestic recovery. DESTINATION CANADA Annual Report 2020

Our response and recovery plan altered all aspects of our business, rendering our previous measures and targets obsolete. As noted in the table below, performance data for all but two measures could not be acquired.

2020 PERFORMANCE METRICS (IDENTIFIED PRE-PANDEMIC)

MANAGEMENT MANAGEMENT The pandemic and new public health guidelines This pivot was deemed appropriate given the impacts DISCUSSION AND MEASURE TARGET RESULT DISCUSSION AND ANALYSIS ANALYSIS necessitated course correction to strategic priorities the pandemic was having on the industry and our Strategic Attributable tourism export revenue $1.85 billion Not assessed. Strategic emphasizing market performance and corporate own internal operations. We accordingly reworked With a halt on global travel, and accordingly, our own pause performance performance Attributable arrivals 1,408,000 on international programming, assessing our impacts on leadership. With support from the Government of our activities and criteria for measuring success, and international travel to Canada was unwarranted. Unaided consideration* 7.2% Canada and approval from our Board of Directors, the following revised areas of focus are an accurate we revised our focus for the remainder of 2020 to reflection of our strategic performance in 2020 in light Partner co-investment ratio 1:1 0.2:1. The shutdown of non-essential travel significantly reduced the following areas: of the needed programming and operational shifts. partners’ budgets, greatly diminishing the capital pool • Domestic marketing and recovery efforts available to co-invest. • Leadership and outreach % of partners who indicate 85% Not assessed. Employee support Destination Canada activities Given the pandemic’s impact to almost all planned activities • advance their business objectives with partners, assessing the value of these activities was no • Operations, workforce and fiscal management longer valid.

Marketing and sales ratio** 90% 90% While the pandemic significantly altered all aspects of our business, we were able to still deploy the majority of our resources to programming efforts.

* Percentage of long-haul travellers in our markets who name Canada as one of the top three destinations they are likely to visit in the next two years. ** Percentage of marketing and sales expenditures over total expenditures.

20 21 DESTINATION CANADA Annual Report 2020

The GoMedia Roadshow

The pandemic put a stop to most of our earned media efforts, including our annual signature GoMedia event scheduled to take place in Victoria, B.C. in late summer. While navigating new health and safety restrictions around in-person events had its challenges, it also inspired us to explore new and innovative ways to work with media and generate positive coverage for tourism MANAGEMENT MANAGEMENT in Canada. DISCUSSION AND DOMESTIC MARKETING DISCUSSION AND ANALYSIS AND RECOVERY EFFORTS ANALYSIS Strategic Strategic performance performance With confidence and support from partners In accordance with public health guidelines, Destination Canada has never had Destination British Columbia, Destination the Roadshow hosted six local journalists and to change how we fundamentally Greater Victoria, Tourism Whistler, Tourism introduced them to the unique characteristics Vancouver and Tourism Kelowna, we pivoted of four locations in BC: operate as quickly and as the format of our signature event to the profoundly as we did in 2020. GoMedia Roadshow, a new program designed • Victoria and its connection to the ocean and to showcase leadership and innovation in expertise in advanced marine technology We responded to the impacts of the global pandemic by Building the foundations for re-entry centres of excellence across Business Events and innovation; reinventing our business model. We put an immediate priority economic sectors. • Whistler and its unique mountain culture, pause on all international marketing activities and Even though in-person media events were passionate community and collaborative events, and within three months pivoted from marketing put on hold, that didn’t stop us from pitching partnerships; Canada to the world to supporting the domestic market stories of inspiration to our key international • Vancouver and its green initiatives and media to keep Canada top of mind. global leadership in clean technology; and We moved forward with a national strategy to support • Kelowna and its rich biodiversity and the recovery of Canada’s communities. Under a new We introduced a monthly global story package advancements in agribusiness including partnership with 13 provincial and territorial marketing full of helpful and inspiring stories tied to innovative growing practices, products and organizations and the Indigenous Tourism Association global trends and Canada’s mosaic of glowing technologies. of Canada, we distributed a $31.4 million national hearts from every corner of the country. With investment previously earmarked for international the help of award-winning freelance writer, The robust itinerary of the Roadshow was marketing efforts. With their own matched funds, global travel expert and editor-at-large for executed safely and smoothly and provided partners used this investment to support the recovery National Geographic Norie Quintos, these journalists with a deeper understanding of of communities and deliver locally led marketing stories position Canada apart from our the distinct DNA of all four communities. programs encouraging Canadians to discover their competitors. From quirky Canadians to global Media praised the volume and variety of new, own backyard. Local execution reflected the different leadership in sustainability, iconic attractions compelling story ideas presented throughout realities and timing of health restrictions in each region, to off the beaten path experiences, these the four days, and the tour has already and funds flowed down to the cities and resorts where publish-ready stories highlight our people and generated positive coverage with potentially they would have the most impact. our pride of place, and remind everyone that Stepping outside the traditional format of a more stories to come. now, more than ever, the world needs Nice. media familiarization tour, the Roadshow brought a small group of key account The GoMedia Roadshow proved a successful In 2020, these story packages helped journalists from travel, business and news way to bridge leisure travel and business to generate over 80 pieces of coverage media outlets on an intimate, immersive events messaging in a cohesive way, and on Canada globally and are building the experience. Attendees were connected with offered a new and compelling storytelling 22 foundations for a re-entry into our 23 inspiring storytellers ranging from community approach to showcases the far reaching international markets when the time leaders and academics, to entrepreneurs benefits that tourism has on the quality of is right. and farmers. life for Canadians. DESTINATION CANADA Annual Report 2020

Internally, we developed a domestic program under We recognized early on the importance of being nimble the name CanadaNice We developed a brand toolkit for and that recovery may not be linear, so our domestic our partners and on Canada Day, launched our national program was designed with agility and adaptation in LEADERSHIP campaign featuring Peter Mansbridge as an advocate mind. When the second wave of COVID-19 hit in the fall, AND OUTREACH for domestic travel in English and Simon Durivage in we responded by respecting provincial health authority French. We followed this initial work with a Rick Mercer guidance and retreated from local markets, starting with “rant” in English and Gregory Charles sharing his Quebec, Ontario and Manitoba. perspective in French on the importance of travel in MANAGEMENT Canada, now more than ever. Looking back at the domestic program, we were MANAGEMENT DISCUSSION AND DISCUSSION AND Research & analytics ANALYSIS able to support our industry, create new content ANALYSIS Strategic Video and newspaper campaigns conveyed how to cost-effectively and at a remarkable pace, and Strategic We established a framework and analytical approach performance performance In response to COVID-19, we moved travel safely, establishing confidence in Canadians to reach almost 20 million Canadians directly with our to understand the impact of COVID-19 in each of our explore their region. Another 20+ videos with local campaigns. We were able to inspire in them a desire to quickly support the information markets. We have been closely monitoring traveller creators celebrating what makes their communities to explore more of our country, helping to bolster local needs of our industry with timely, sentiments around the globe and signals from so special were developed and shared. tourism demand and support businesses across the reliable data. consumer and industry behaviour to understand country. when, where and at what pace travel and tourism The campaigns were well received and obtained high would resume. engagement rates. In fact, Rick Mercer’s video was Continuing to positively influence the confidence of Prior to the virus being declared a global pandemic in number two on the YouTube Ads Leaderboard for the Canadians to travel safely, when the time is right, and mid-March, we had already been tracking the impact We began by providing the data that stakeholders top ads in Canada in 2020. The Ads Leaderboard to convey the power that hosting visitors has on all that the virus was having on travel around the world. needed most to make decisions. We have been acutely showcases the most creative ads that Canadians Canadians’ quality of life will be paramount for the In the early days of the outbreak, we quickly assessed analyzing the health of the Canadian tourism sector choose to watch. industry’s recovery and long-term resilience. the effects of the collapse in Asian air arrivals and began — mapping impact and forecasting demand. We have forecasting losses to businesses and jobs. We were been assessing whether communities are ready able to model various scenarios, depending on impact and feel safe to welcome tourists back, and we are severity, and share our preliminary analyses with senior continually monitoring recovery signals to understand government officials to support informed policymaking. when the time will be right to fully relaunch marketing activities. PERFORMANCE RESULTS: DOMESTIC RECOVERY MARKETING

While we have regularly provided intelligence, insights and tools to our partners to help support their DESIRED RESULT MEASURE TARGET RESULT businesses, the early impacts of the pandemic led We reach* more of our domestic Reach of Canadian audience 7.4 million 19.9 million us to quickly expand our base of research intelligence travellers in July – December 2020 to respond to the urgent information needs of the Domestic travellers find experiences Domestic campaign link click 1.1% 4.64% they want and can do through rate industry-at-large — all available at no cost. We have also continued to respond to the rapidly expanding * Number of people who saw our content need for data and forecasts to support government policy-making.

Analyzing data and sharing reliable information about the unfolding crisis and its impact on travel will continue to be a cornerstone of our work.

24 25 DESTINATION CANADA Annual Report 2020 Business Events Business intelligence of their businesses gave us valuable insight into their Each roadmap consists of tools to guide our We invested in data gathering and analysis to provide a concerns and needed support. We were then able business development team and Canadian partners The last year has been one of the hardest to endure clear picture of the effects that COVID-19 was having on to respond quickly with the tools and resources they by concentrating on the most resilient sectors and for Canada’s business events industry. We knew early the business events industry. Data collected from industry required to target resilient sectors and be able to rise sub-sectors. The in-depth intelligence provides focus on that how we responded to the pandemic would partners from across the country formed the basis of above the competition post-pandemic. to business development activities by identifying which have a lasting impact on the future of business events our regular analyses of restart signals. This level of sectors, markets and accounts to prioritize. in Canada in a post-COVID-19 world. It was important intelligence was essential in providing a comprehensive Our insights into the future of business events in Canada to set the tone and provide leadership to an industry picture of the evolving state of the industry. Having a included considerations for future planning, how to The intelligence compiled in the roadmap is extensive MANAGEMENT grappling with cancelled events, job losses and closed deep understanding of the marketplace, including the MANAGEMENT create trust in travel for delegates, and the mechanisms and rich. It is based on those priority economic sectors DISCUSSION AND DISCUSSION AND ANALYSIS businesses. Our ability and agility to react, respond and economic impact of lost business, events and group ANALYSIS needed to support the return of events. This depth of that we believe will not only survive the pandemic, but Strategic quickly pivot allowed us to address the urgent and visitors, was critical in shaping our strategies and guiding Strategic business intelligence was, and will continue to be, critical will thrive post- pandemic and have the potential for performance performance changing needs of our industry. our collective response. In addition, we developed a in order to anticipate when and how business may return long-term resiliency. Events within those sectors will central place where pan-Canada gathering restrictions and has proven valuable to our industry colleagues to be among the first to bounce back and will help We spent much of 2020 focusing on three areas: and planner resources could be easily accessed by provide a forward look at recovery and restart. jump-start economic recovery. expanding our research and business development; partners, businesses and clients. This information further developing a global sector roadmap to guide recovery; helped our industry colleagues navigate the new Global sector roadmap This global roadmap of sector clusters will strengthen and resuming marketing to keep Canada top of mind landscape and inform their decision-making. The suite of business intelligence projects conducted the industry’s ability to weather future storms and aid for when business events are ready for return. This in 2020 included a global sector roadmap to provide the re-build of a strong business events industry approach has continued into 2021 and will allow us and Our research with key decision-makers and influencers guidance in the road to recovery. The roadmap is based across the country. our partners to stay abreast of the changes within our helped us to understand the factors and emerging on six leading economic sectors in which Canada has industry, create resiliency and welcome back business trends shaping the return of business events travel. centres of excellence and that give the country a events stronger than ever. Outreach to Canadian industry partners about the state competitive advantage.

26 27 DESTINATION CANADA Annual Report 2020 Keeping Canada top of mind INTERNAL OPERATIONS Although our marketing campaigns were paused throughout much of 2020, we resumed storytelling in our key markets in September to share stories of In the lead up to the pandemic, we had been regularly resilience, pride and innovation. monitoring the state and scale of the crisis both globally and domestically, and were readying ourselves internally We know that powerful connections can be made when people come together to meet, engage and to continue business operations in the event of a full-scale MANAGEMENT collaborate. Therefore, during the pre-recovery phase, MANAGEMENT DISCUSSION AND DISCUSSION AND shutdown. An internal task force was formed with a mandate ANALYSIS it was important to showcase the business events that ANALYSIS to ensure business continuity, ensure technological readiness, Strategic were able to take place safely in Canada, while adhering Strategic performance performance to public health guidelines. Additionally, informing deploy emergency staff communications and consider the decision-makers of the options available to incorporate needed staff support resources. new types of digital and hybrid technologies in their meetings and conferences was important to build confidence in meeting safely and to keep Canada top of mind for the future. Furthermore, softly engaging with clients to reintroduce brand messaging was particularly valuable to partners to help keep their brands and Employee support messaging alive at a time when it was difficult to so on their own. Safeguarding the health of our staff necessitated the keep staff frequently informed, connected and engaged, eventual shutdown of our offices around the world, including a regular employee newsletter and monthly and our workforce had the tools and technology to organization-wide town halls. We emphasized employee continue business operations remotely with virtually wellbeing, launching various channels and activities no down time. Additional technologies and associated to promote mental health and social connection with training were provided to assist with working remotely colleagues in a virtual environment. We also provided and business processes were revised to accommodate assistance to managers to effectively cope with the PERFORMANCE RESULTS: LEADERSHIP AND OUTREACH the new environment. Connection points with staff challenges of virtually managing teams in a prolonged went up significantly; new tools were introduced to teleworking environment.

DESIRED RESULT MEASURE TARGET RESULT

Canadian tourism organizations # of research downloads by small- and 38,070 44,000 value Destination Canada medium-sized enterprises and partners PERFORMANCE RESULTS: EMPLOYEE SUPPORT from April – December 2020 # of unique page visits to corporate 315,000 443,000 website in March – December 2020 DESIRED RESULT MEASURE TARGET RESULT # of travel trade webinar views in Canada 9,000 21,000 and in Destination Canada’s international Staff feel valued, connected Employee support index 90 93.2 markets and protected Satisfaction rating of NorthStar CEOs Average of 3 on Average of 4.6+ Staff are committed to Destination Employee engagement 64% 72% and CMOs on Destination Canada’s 5-point scale 91% of respondents Canada and willing to apply 2020 activities selected 4 or 5 discretionary effort in their work

28 29 DESTINATION CANADA Annual Report 2020

Operations, workforce and fiscal management

While the speed and scale of an operational pivot reduce activities in many of our markets. Changes in was remarkable, the significant shift from international our international areas of focus were further impacted marketing activities to the domestic market entailed by diminished partner budgets that were triggered by a critical look at our human and financial resources. the pandemic and which have reduced the collective MANAGEMENT We enacted urgent and pragmatic changes to conserve spending power of the industry. We will, however, continue MANAGEMENT DISCUSSION AND DISCUSSION AND Diversity, inclusion and ANALYSIS capital and divert resources to higher-priority areas to track ongoing recovery of all markets and regularly ANALYSIS indigenous awareness Strategic of our strategy. Marketing individuals were temporarily assess their post-pandemic potential. Strategic performance performance redeployed to high-demand areas of the business, The social, political and economic such as research and industry relations, in new and Although 2020 was a difficult year and the uncertainty expanded ways. Although redeployment was a viable of a return to normalcy will continue for some time, climate in 2020 accelerated option for many roles, 11 positions had to be eliminated the COVID-19 pandemic has challenged us to learn conversations around the throughout the organization. quickly, adapt and develop more streamlined ways of concepts of diversity, inclusion working. The crisis has also given us the opportunity We scaled back many program and operational contracts, to critically re-examine the potential of our portfolio and reconciliation around the including with our General Sales Agents in our overseas of geographic markets for the benefit of Canada’s globe and at Destination Canada. markets. We made the difficult but needed decision to tourism industry. In 2020, we established a working group and a supporting employee council made up of diverse identities and perspectives to develop a roadmap of initiatives aimed at fostering a greater understanding of diversity and inclusion, and intersectionality within our workplace, workforce and interactions with partners and travellers alike. We engaged an external consulting PERFORMANCE RESULTS: OPERATIONS, WORKFORCE AND FISCAL MANAGEMENT firm to undertake an organizational review from a justice, equity, diversity and inclusion lens, and this will work

DESIRED RESULT MEASURE TARGET RESULT will continue in 2021 and beyond.

Destination Canada is prepared Operations management index 90 92 to respond quickly and safely to a For many at Destination Canada, understanding and transitioning work environment appreciating the rich history of Indigenous peoples is Staff are well matched to their role and Employee enablement 64% 76% limited. To promote awareness and understanding of experience job conditions that support Indigenous cultures, in 2020 we offered Indigenous them to perform to their full potential awareness training to all staff. This foundational training Majority of Destination Canada’s % of spending in marketing and sales 90% 90% budget is deployed to marketing was critical to understanding the history, culture, and and sales activities relationships with Indigenous Peoples and was a key step in charting a path to build informed, effective, and respectful relationships with Indigenous Peoples and communities.

30 31 DESTINATION CANADA Annual Report 2020

Management Marketing effectiveness 2020 2019 There is a risk that we are not effective at promoting Canada as a premier tourism destination.

controls Mitigation activities: Collectively with our partners, and in consultation with our advisory committees, we worked to address the challenges of COVID-19 and the resulting and changing travel restrictions. We strengthened our digital and strategic marketing capabilities and increased reporting frequency to provide more specific and relevant data to our partners and the industry. MANAGEMENT MANAGEMENT DISCUSSION AND RISK MANAGEMENT DISCUSSION AND We improved access to, and analysis of, quality data for our strategic partners and ourselves. In addition, we evolved our brand to ANALYSIS ANALYSIS create a strong emotional connection with travellers and inspire greater visitation to Canada. Management We use an integrated risk management approach Management controls controls that considers risks at all stages of the business cycle from the strategic planning phase to day-to-day Performance measurement 2020 2019 business operations. We follow a formal risk review There is a risk that we will be unable to measure the impact, effectiveness and attributable results of our marketing efforts, including process including working groups of key staff, the senior the use of new marketing communications technologies, in a manner that is meaningful to our stakeholders. management team, our Board of Directors and the expertise of an independent third party. We use the Mitigation activities: In addition to using the latest technology to measure the results of our marketing efforts, we continued risk assessment in the development of our five-year working with our partners to improve performance measurement approaches and explore standardized measures. We worked with strategic plan, risk mitigation strategy and internal audit select partners to measure the impact of our collective marketing efforts through an improved process for data sharing and analysis. plan. Focus is placed on identifying and mitigating risks that could impede the delivery of our strategic plan. Change and talent management 2020 2019 The following risk assessment is the result of the latest There is a risk that our dynamic and changing needs for skills and talent to support our business will negatively affect the recruitment review done in mid-2020. To effectively manage each of key talent, employee engagement and succession planning, impacting our organization’s efficiency and effectiveness. These strategic risk impacting our organizational objectives, market dynamics may impact our ability to recruit, maintain employee engagement and ultimately retain staff due to the competition we undertook the risk mitigation activities noted below. in the marketplace for these skills, which are new and in demand.

Mitigation activities: We continued to focus on training, job enrichment opportunities and enhanced employee communications. We continued to modernize our staffing approach and updated succession plans at the management level to ensure the seamless continuity of business when key leadership positions were vacated. Non-financial risks

High Global economic and geo-political 2020 2019 Financial risk residual risk Medium There is a risk that the global economy and the economies of the markets where we invest could experience a significant slowdown High 2020 2019 residual risk Currency in growth, changes in the political landscape, an impact from climate change, or changes in security which would impact international residual risk Low travel to Canada. Medium There is a risk that the impact of a lower valuation of the Canadian dollar and the resulting decreased purchasing power will result in residual risk residual risk diminished reach and reduced impact of our marketing efforts in highly competitive international marketplaces. Mitigation activities: We used research and Canada domestically and internationally. We worked closely with our provincial, territorial Low and city partners to ensure alignment, and that our decisions were informed by the experience and feedback from our partners. residual risk Mitigation activities: We employed a balanced portfolio approach where investments were spread across a diversified set of leisure We reallocated funds as the changing conditions throughout 2020 dictated. We supported industry with research, information, and business markets to balance risk and maximize return. In addition, we worked with our large vendors to manage the risk by setting tools, media assets and sales opportunities to support pathfinding and helped maintain businesses during this critical period foreign exchange rates in advance of each month to reduce the fluctuation of value in our foreign currency transactions

32 33 DESTINATION CANADA Annual Report 2020

INTERNAL AUDIT Financial STATEMENT OF Our financial statements and FINANCIAL POSITION notes are audited annually by the overview Office of the Auditor General of Financial assets increased by $5.3 million, or 15%. This change was driven by a larger cash balance MANAGEMENT Financial MANAGEMENT DISCUSSION AND Canada. In addition, the DISCUSSION AND The financial overview presents of $37.8 million compared to $31.6 million in 2019, ANALYSIS Administration Act requires us to ANALYSIS supplemental information as which was a result of the timing of the fourth quarter Management Financial overview drawdown of parliamentary appropriations and timing controls conduct internal audits. Our annual context to the financial statements In 2020, the internal auditor conducted a Content of disbursements of cash for operating expenses. internal audit plan is risk-based Production Audit. In 2019, we identified rights and notes and compares our and integrated with the enterprise management of content as a risk in connection to these current year to past year’s Total liabilities decreased by $10.8 million, or 48%, from risk assessment to ensure that assets. The internal auditor conducted interviews with performance and budget. 2019. This decrease was caused primarily by lower trade members of management from our Legal, Information accounts payable, which is the result of a decrease in we focus efforts on mitigating risks Technology and Global Marketing teams, performed expenses and timing of disbursements. Our financial statements are prepared in accordance with process walkthroughs and tested samples. The content carrying the highest likelihood Canadian public sector accounting standards (PSAS). and impact to our organization. production landscape changed as a result of Non-financial assets increased by $3.7 million, or 118%, COVID-19 and the audit team considered the risks and The 2020 year was a tremendously difficult one for over 2019. This reflects an increase in prepaid expenses We engage an external firm to carry recommendations through this new lens. The audit the tourism industry due to the global impact of the as at year-end that primarily relate to funds that were out this function; the internal auditor report found that while there are controls in place to COVID-19 pandemic, which significantly impacted our disbursed through our domestic marketing partnership is independent of management address content ownership and strategy alignment, financial and operational plans. The pandemic has agreements to provincial, territorial and destination there are opportunities for improvement in the areas impacted every aspect of our business, most of the marketing organizations for which the programming and reports directly to the Audit and of standardized documentation, ownership strategy, line items in the financial statements, and was the main spans two fiscal years for Destination Canada — 2020 Pension Committee of the Board project approval and content usage guidance, in order driver in any significant variances compared to 2019 and 2021. The cash sent to partners for programs that of Directors. to address the financial and reputational risks to the and the budget as outlined in our Corporate Plan. have not yet occurred as at December 31, 2020 are organization. classified as prepaid expenses.

During the year we also updated our strategic risk As a result, we report an accumulated surplus of register and diverted resources to our internal task force $36.6 million as at December 31, 2020. The accumulated to address the operational impacts to the organization surplus has primarily arisen from marketing efforts and other work in response to the COVID-19 pandemic. deferred to 2021 as a result of the travel restrictions Led by the Audit and Pension Committee, we have and border closures due to the pandemic. The majority addressed the majority of recommendations and of the surplus ($23.0 million) is earmarked for 2021 developed action plans to address the remaining domestic spend for partner-led and Destination recommendations resulting from the internal audits Canada-led marketing campaigns carried over from and risk assessments from 2020 and past years in 2020. The remainder of the surplus consists of the order to continuously improve our processes and amortization of tangible capital assets, accrued internal controls. benefit assets, and lower than budgeted corporate services costs.

34 35 DESTINATION CANADA Annual Report 2020

STATEMENT OF OPERATIONS

We report an in-year accounting surplus of $19.6 million Parliamentary appropriations Partner cash revenues PARTNER CASH REVENUES (Millions of $CAD) for the year ended December 31, 2020 compared to by government fiscal year We leverage the power of appropriated funding by a planned deficit of $4.1 million. The fourth quarter We are funded primarily by Government of Canada engaging other organizations supporting the visitor 3.1 2020 actual resurgence in the number of COVID-19 cases across parliamentary appropriations. As our fiscal year-end economy to co-invest in campaigns that we lead. Our 20.0 2020 budget MANAGEMENT the country and around the world resulted in new travel is December 31 and the federal government year-end MANAGEMENT partners include provincial, territorial and destination DISCUSSION AND DISCUSSION AND 22.5 2019 ANALYSIS restrictions. Accordingly, we paused most marketing is March 31, we draw funding from two government ANALYSIS marketing organizations, media publishers, commercial 25.4 2018 Financial overview and sales activities which resulted in lower than planned fiscal years. Financial overview partners and tourism associations. Each of these 26.1 2017 expenses. organizations was severely impacted by COVID-19, 20.0 2016 For the 2020/2021 government fiscal year, we received with funding and other revenues declining suddenly in Total revenues were under budget by $17.0 million due our base funding of $95.7 million in main estimates. March 2020, and with lower activity levels throughout primarily to lower partner revenues than expected. the rest of the year. Partners’ budgets were cut significantly in 2020 as The accompanying table shows the total funds received some of their main source of revenues were greatly from the Government of Canada for the past five fiscal Through these agreements, partners join us in funding In 2020, the cash portion of these contributions reduced when non-essential travel was shut down years. Starting in 2018/19, our base appropriations initiatives, whether through cash or in-kind contributions, represented $3.1 million of partner co-investment and hotel occupancy rates plunged. These revenues were confirmed at $95.7 million per government fiscal to market the Canada brand. Only cash partnership compared to $22.5 million in 2019. As shown in the contribute to the total co-investment from partners. year, allowing for greater stability and the ability to contributions are recognized as revenues in our accompanying graph, our partner revenues missed plan multiple years of sustainable programming with Statement of Operations as per our accounting policy the budget by $16.9 million, which is in stark contrast confidence. With this funding, we continue to seek in Note 2 of the financial statements. with the past four years’ revenue levels. improved operational efficiencies to deliver our mandate in a scalable, effective and adaptable way.

PARLIAMENTARY APPROPRIATIONS BY GOVERNMENT FISCAL YEAR (Millions of $CAD)

Base Connecting America Marketing Canada Business Events Domestic Marketing

3.0 25.0 25.0 95.7 5.0 95.7 95.7

2016/17 2017/18 2018/19 2019/20 2020/21 12.5 12.5 est.

Total 95.5 Total 95.5 Total 98.7 Total 100.7 Total 95.7

36 37 DESTINATION CANADA Annual Report 2020

Expenses Total expenses excluding amortization decreased by Our corporate services costs excluding amortization $51.2 million to $80.2 million in 2020, a 39% decrease decreased by $0.1 million compared to 2019. The from last year. This decrease was driven by a couple 2020 expenses of $7.7 million represent 9% of total MANAGEMENT of non-reoccurring pension transactions: a pension expenditures, excluding amortization, instead of the DISCUSSION AND ANALYSIS de-risking expense of $8.9 million in 2019 from the 7% budgeted. This reflects the sharp drop in marketing Financial overview purchase of annuities relating to the defined benefit and sales expenses described above rather than an pension for Canadian employees, and a $1.5 million increase in corporate services spending. The remainder gain in 2020 relating to a plan curtailment and of our budget was spent in strategy and planning (1%). involuntary US plan closure and amendment. We consistently spend the vast majority of our funding in marketing and sales activities and continue to The remainder of the significant change relates to a leverage new corporate efficiencies in order to meet $40.7 million decrease in marketing and sales expenses our target of 90% of spending in marketing and sales. in the year as tradeshows, marketing campaigns and other programs were cancelled or put on hold because of COVID-19.

EXPENSES (Excluding amortization and pension adjustments, millions of $CAD)

Marketing & Sales Corporate Services Strategy & Planning

0.9 1.2 1.0 0.7 0.8 0.9 5.2 116.3 7.7 118.0 8.8 114.7 92.9 8.0 113.9 7.8 7. 7 73.2

2016 2017 2018 2019 2020

Total 99.0 Total 125.2 Total 127.0 Total 122.5 Total 81.7 Total 124.4 (actual) (budget)

38 39 Management responsibility statement

FINANCIAL March 10, 2021 The management of the Canadian Tourism Commission (the “CTC”) is SUMMARY responsible for the performance of the duties delegated to it by the Board Management responsibility of Directors. These include the preparation of an Annual Report together statement FINANCIAL with audited financial statements. Management is responsible for preparation of these financial statements in accordance with Canadian public sector accounting standards. Other financial and operational SUMMARY information appearing elsewhere in the Annual Report is consistent with that contained in the financial statements.

Management is responsible for maintaining internal accounting control systems designed to provide reasonable assurance that relevant and reliable financial information is produced and that transactions comply with the relevant authorities.

Management is also responsible for maintaining financial and management control systems and practices designed to ensure the transactions are in accordance with Part X of the Financial Administration Act and regulations, the Canadian Tourism Commission Act, and by-laws of the CTC. These systems and practices are also designed to ensure that assets are safeguarded and controlled, and that the operations of the CTC are carried out effectively. In addition, the Audit and Pension Committee, appointed by the Board of Directors, oversees the internal audit activities of the CTC and performs other such functions as are assigned to it. The following financial statements

and notes reflect our legal name, The CTC’s external auditor, the Auditor General of Canada, is responsible “Canadian Tourism Commission”. for auditing the financial statements and for issuing her report thereon.

Marsha Walden Anwar Chaudhry President and Senior Vice President, Finance and Risk Chief Executive Officer Management, and Chief Financial Officer

41 DESTINATION CANADA Annual Report 2020

FINANCIAL FINANCIAL SUMMARY SUMMARY Independent Independent Auditor’s Report Auditor’s Report

42 43 DESTINATION CANADA Annual Report 2020 Statement of financial position As at December 31, 2020 (in thousands of Canadian dollars)

FINANCIAL FINANCIAL Note Dec. 31, 2020 Dec. 31, 2019 SUMMARY SUMMARY Financial assets Independent Statement Auditor’s Report of financial Cash and cash equivalents 4 37,784 31,641 position Accounts receivable

Partner 1,306 1,617

Government of Canada 418 618 Other 1 4 Accrued benefit asset 8 1,450 1,653 Portfolio investments 5 713 803 41,672 36,336 Liabilities Accounts payable and accrued liabilities Trade 3,427 14,333 Employee compensation 2,182 1,677 Government of Canada 75 81 Accrued benefit liability 8 3,749 5,435 Deferred revenue 3 1,845 488 Deferred lease inducements 482 580 Asset retirement obligation 164 164 11,924 22,758 Net financial assets 29,748 13,578

Non-financial assets Prepaid expenses 3 5,697 1,721 Tangible capital assets 7 1,136 1,413 6,833 3,134

Accumulated surplus 10 36,581 16,712

Contractual Obligations, Contingencies, Contractual Rights (Notes 3, 14, 15 and 17). The accompanying notes form an integral part of these financial statements.

Approved on behalf of the Board of Directors,

Monique Gomel Pat Macdonald

44 45 Director Director DESTINATION CANADA Annual Report 2020 Statement Statement of remeasurement of operations gains and losses For the year ended December 31 For the year ended December 31 (in thousands of Canadian dollars) (in thousands of Canadian dollars)

FINANCIAL Note Budget 2020 2020 2019 FINANCIAL Note 2020 2019 SUMMARY SUMMARY Revenues Accumulated remeasurement (loss) gain, beginning of year (194) 154 Statement of Statement of operations Partner revenues 20,000 3,143 22,485 remeasurement Unrealized gain (loss) attributable to foreign exchange 51 (194) Other 1,485 1,361 2,024 gains and losses — Amounts reclassified to the statement of operations 194 (154) 21,485 4,504 24,509 Statement of Net remeasurement gain (loss) for the year 245 (348) change in net financial Expenses 12 Accumulated remeasurement gain (loss), end of year 10 51 (194) assets Marketing and sales 11 114,729 71,667 113,905 The accompanying notes form an integral part of these financial statements. Corporate services 8,785 7,7 12 7,830 Strategy and planning 887 837 749 Amortization of tangible capital assets 366 330 355 Plan settlement cost 8 — — 8,936

124,767 80,546 131,775 Statement of change in

Net cost of operations before funding from the (103,282) (76,042) (107,266) net financial assets Government of Canada For the year ended December 31 (in thousands of Canadian dollars) Parliamentary appropriations 9 99,156 95,666 102,221

Surplus (Deficit) for the year (4,126) 19,624 (5,045) Note Budget 2020 2020 2019

Accumulated operating surplus, beginning of year 16,906 16,906 21,951 Surplus (Deficit) for the year (4,126) 19,624 (5,045)

Accumulated operating surplus, end of year 10 12,780 36,530 16,906 Acquisition of tangible capital assets 7 (140) (57) (386)

Amortization of tangible capital assets 7 366 330 355 The accompanying notes form an integral part of these financial statements. Net disposition of tangible capital assets 7 — 4 —

226 277 (31)

Effect of change in other non-financial assets

(Increase) Decrease in prepaid expenses 304 (3,976) 994

304 (3,976) 994

Net remeasurement gain (loss) — 245 (348)

Increase (Decrease) in net financial assets (3,596) 16,170 (4,430)

Net financial assets, beginning of year 13,578 13,578 18,008

Net financial assets, end of year 9,982 29,748 13,578

46 47 The accompanying notes form an integral part of these financial statements. DESTINATION CANADA Annual Report 2020 Statement Notes to the financial statements of cash flows For the year ended December 31 December 31, 2020 (in thousands of Canadian dollars)

FINANCIAL Note 2020 2019 FINANCIAL In July 2015, the CTC was issued directive PC SUMMARY SUMMARY 1. Authority, objectives Financial Operating transactions: 2015-1109 pursuant to section 89 of the Statement of Notes to and directives Administration Act to align its travel, hospitality, cash flows Cash received from: the financial statements conference and event expenditures policies, Parliamentary appropriations used to fund operating The Canadian Tourism Commission (the “CTC”) was 9 95,666 102,221 guidelines and practices with Treasury Board and capital transactions established on January 2, 2001 under the Canadian policies, directives and related instruments on travel, Partners 4,811 25,092 Tourism Commission Act (the “Act”) and is a Crown hospitality, conference and event expenditures in a Other 886 1,134 corporation named in Part I of Schedule III to the manner that is consistent with its legal obligations, Financial Administration Act. The CTC is for all Interest 377 788 and to report on the implementation of this directive purposes an agent of her Majesty in right of Canada. 101,740 129,235 in the CTC’s next corporate plan. The CTC As a result, all obligations of the CTC are obligations implemented its new Travel, Hospitality, Conference, Cash paid for: of Canada. The CTC is not subject to income taxes. Cash payments to suppliers (80,982) (115,202) and Event Expenditures Policy on August 21, 2015 As stated in section 5 of the Act, the CTC’s which complied with the requirements of the Cash payments to and on behalf of employees (14,893) (14,863) mandate is to: directive. The Treasury Board issued revised Cash provided by (used in) operating transactions 5,865 (830) • sustain a vibrant and profitable Canadian tourism directives and guidelines in 2017. On November 29, industry; 2018, the CTC approved an updated policy to align Capital transactions: • market Canada as a desirable tourist destination; with the new requirements. Acquisition of tangible capital assets (57) (386) • support a cooperative relationship between the Cash used in capital transactions (57) (386) private sector and the governments of Canada, 2. Significant accounting the provinces and the territories with respect to Investing transactions: Canadian tourism; and policies Redemption (acquisition) of portfolio investments 90 (419) • provide information about Canadian tourism to the These financial statements have been prepared in Cash provided by (used in) investment transactions 90 (419) private sector and the governments of Canada, accordance with Canadian public sector accounting the provinces and the territories. Net remeasurement gain (loss) for the year 245 (348) standards (“PSAS”). Significant accounting policies In December 2014, the CTC was issued directive are as follows: Net increase (decrease) in cash during the year 6,143 (1,983) PC 2014-1378 pursuant to section 89 of the Financial Cash and cash equivalents, beginning of year 31,641 33,624 Administration Act directing the CTC to implement a) Parliamentary appropriations Cash and cash equivalents, end of year 37,784 31,641 pension plan reforms. These reforms are to ensure The CTC is mainly financed by the Government The accompanying notes form an integral part of these financial statements. that pension plans of Crown corporations provide of Canada through parliamentary appropriations. a 50:50 current service cost-sharing ratio between Parliamentary appropriations used to fund core employee and employer for pension contributions by operations and capital expenditures are considered December 31, 2017. The 50:50 cost-sharing ratio was unrestricted and recognized as revenues when the fully implemented as of December 31, 2017. appropriations are authorized and any eligibility

48 49 DESTINATION CANADA Annual Report 2020

criteria are met. Parliamentary appropriations used c) Other revenues g) Prepaid expenses until the criteria and stipulations are met that gave to fund one-time activities are considered restricted. Other revenues consist of cost recoveries from Payments made prior to the related services being rise to the liability. As at December 31, 2020 and 2019, Restricted appropriations have eligibility criteria and co-location partners, interest revenues, capital asset rendered are recorded as a prepaid expense. Prepaid the deferred revenue balance is solely made up of stipulations that give rise to an obligation that meets sales and other miscellaneous revenues. These items expenses are recognized as an expense as the deferred revenue from partnering organizations. the definition of a liability. Restricted appropriations are recognized as revenue in the period in which the related services are rendered. Prepaid expenses are recognized as deferred revenue when the transaction or event occurred that gives rise to the consist of program and operating expenses such as j) Deferred lease inducements stipulation gives rise to a liability. Restricted revenue. subscriptions, marketing activities with provincial and Deferred lease inducements consist of various office appropriation revenue is recognized as the territorial marketing organizations and tradeshow lease inducements including reimbursement of FINANCIAL stipulation liabilities are settled. FINANCIAL expenditure. leasehold improvement costs and free rent periods. SUMMARY d) Foreign currency translation SUMMARY Monetary assets and monetary liabilities These inducements are deferred and recognized as a Notes to Notes to the financial As a result of the CTC’s year-end date (December 31) denominated in foreign currencies are translated the financial h) Tangible capital assets straight-line reduction to office lease expenses over statements statements being different than the Government of Canada’s into Canadian dollars at the applicable year-end Tangible capital assets are recorded at cost less the term of the lease. year-end date (March 31), the CTC is funded by exchange rate. Non-monetary assets and accumulated amortization and the amount of any portions of appropriations from two Government non-monetary liabilities denominated in foreign write-downs or disposals. Tangible capital assets are k) Asset retirement obligation fiscal years. Refer to Note 9. currencies are translated into Canadian dollars at written down when conditions indicate they no longer Asset retirement obligation consists of historical exchange rates. Revenue and expense contribute to the ability to provide services and are decommissioning costs for various office leases. The CTC will have a deferred parliamentary items are translated during the year at the exchange accounted for as expenses in the Statement of The CTC recognizes asset retirement obligations appropriations balance at year-end when the rate in effect on the date of the transaction. Operations. as a result of legal obligations to restore leased restricted funding received for the period exceeds Amortization expenses of tangible capital assets office spaces back to their original states at the the restricted appropriations recognized for are translated at historical rates to which the assets Tangible capital assets are amortized on a end of the lease term. Asset retirement obligations the related fiscal period. The CTC will have a relate. Realized gains and losses are considered straight-line basis over the estimated useful life of are measured initially at fair value, based on parliamentary appropriations receivable balance Operating Expenses and are included in the the assets as follows: management’s best estimates, with the resulting when restricted appropriations recognized exceed Statement of Operations as Corporate Services. amount capitalized into the carrying amount of the Leasehold improvements Remaining term of lease the restricted funding received. Unrealized gains and losses are reported on the related asset. The capitalized asset retirement cost Statement of Remeasurement Gains and Losses Office furniture 5 years is amortized on a straight-line basis over the term of The CTC does not have the authority to exceed and in the Statement of Change in Net Financial Computer hardware 3 years the lease. The amortization expense is included in

approved appropriations. Assets. The CTC does not hedge against the risk Computer software 5 years corporate services in determining the net cost of of foreign currency fluctuations. operations. Refer to Note 7.

b) Partner revenues Intangible assets are not recognized in these The CTC conducts marketing activities in partnership e) Cash and cash equivalents financial statements. l) Employee future benefits with a variety of Canadian and foreign organizations. Cash and cash equivalents include cash in bank and The CTC offers a number of funded, partly funded Where the CTC assumes the financial risks of mutual funds. These items are readily convertible i) Deferred revenue and unfunded defined benefit pension plans, other conducting a marketing activity, contributions to a known amount of cash and are subject to an Deferred revenue consists of revenue from partnering unfunded defined benefit plans (which include received from a partnering organization are insignificant risk of change in value. Refer to Note 4. organizations and restricted appropriations received post-employment benefits, post-retirement benefits recognized in income over the effective life of the from the Government of Canada. When revenues are and non-vested sick leave), as well as defined contract or when the event has taken place. Partner f) Portfolio investments received from partnering organizations, they are contribution pension plans. The pension plans revenues received for which the related marketing Portfolio investments are measured at amortized recognized as deferred revenue until the event has include a statutory plan, a supplemental plan and activity has not yet taken place are recognized as cost. Interest income related to these investments is taken place or recognized as partner revenue over a plan to cover certain employees working outside deferred revenue. calculated based on the effective interest method. the effective life of the contract. When restricted of Canada. Other benefit plans include Refer to Note 5. appropriations are received from the Government of post-employment severance benefits and Canada, they are recognized as deferred revenue post-retirement health, dental and life insurance

50 51 DESTINATION CANADA Annual Report 2020

benefits and non-vested sick leave. The defined Actuarial gains and losses are amortized over m) Financial instruments p) Partnership contributions in-kind benefit pension plans provide benefits based on expected average remaining service lifetime (“EARSL”) Financial assets consist of cash and cash In the normal course of business, the CTC receives years of service and average pensionable earnings of active employees. If no active employees are equivalents, accounts receivable and portfolio in-kind contributions from its partners including at retirement. remaining, actuarial gains and losses are amortized investments, while financial liabilities consist of the transfer of various types of goods and services fully in the next fiscal year. For 2020, EARSL has been accounts payable and accrued liabilities. Financial to assist in the delivery of programs. The in-kind The defined benefit component of the statutory plan determined to be 0.0 years (5.6 years – 2019) for the assets and financial liabilities are measured at contributions from partners are not recognized in and the supplemental plan has been closed effective Registered Pension Plan for Employees of the amortized cost, which approximates their fair value. the financial statements. December 30, 2017 and benefits and service of plan CTC (“RPP”), 0.0 years (0.0 years – 2019) for the FINANCIAL participants were frozen as of that date. The CTC Supplementary Retirement Plan for certain employees FINANCIAL SUMMARY SUMMARY n) Measurement uncertainty q) Inter-entity transactions funds certain pension plans annually based on of the CTC (“SRP”), 14 years (15.5 years – 2019) for the The preparation of financial statements in Inter-entity transactions are transactions between Notes to Notes to the financial actuarially determined amounts needed to satisfy Pension Plan for Employees of the CTC in Japan, South the financial accordance with Canadian PSAS requires commonly controlled entities. The CTC records statements statements employee future benefit entitlements under current Korea and China (“WWP”), 21 years (21 years – 2019) management to make estimates and assumptions inter-entity transactions at the exchange amount benefit regulations. Cost of living adjustments are for non-pension post-retirement benefits, 14 years that affect the reported amounts of assets and except the following: automatically provided for retirees in accordance (12 years – 2019) for severance benefits and 14 years liabilities at the date of the financial statements • Audit services received without charge between with Consumer Price Index increases. (14 years – 2019) for sick leave benefits. and the amounts of income and expense during commonly controlled entities. the reporting periods. Actual results could differ • In-kind contributions received from commonly The costs and obligations of the defined benefit Employees working in the UK and the US participate significantly from those estimates. The most controlled entities. plans are actuarially determined using the projected in the Global Affairs Canada defined benefit pension significant estimates involve the determination of the benefit method prorated on service that incorporates plans administered by the Government of Canada. employee future benefits liability and related accrued The value of the audit services is considered management’s best estimates of the rate of The assets of these plans cannot be allocated among benefit asset, the useful lives for amortization of insignificant in the context of the financial statements employee turnover, the average retirement age, the participating employers, and as such, these plans tangible capital assets, the fair value of the asset as a whole and inter-entity in-kind contributions are average cost of claims per person, future salary and are deemed “multi-employer” plans and accounted retirement obligation, contingencies, partner not recognized in the financial statements. benefit levels, expected return on plan assets, future for as defined contribution plans. The CTC’s revenues, prepaid expenses and accrued liabilities. medical costs, and other actuarial factors. For the contributions to these plans reflect the full benefit 3. COVID-19 financial purposes of calculating the expected return on plan cost of the employer. These amounts vary depending o) Related party transactions assets, those plan assets are based on the market upon the plan and are based on a percentage of the Through common ownership, the CTC is related to impacts value of plan assets. employee’s gross earnings. Contributions may all Government of Canada created departments, change over time depending on the experience of agencies and Crown corporations. The CTC’s The global tourism industry has been devastated by Past service costs arising from plan amendments are the plans since the CTC is required under present transactions with these entities are in the normal the COVID-19 pandemic and the CTC’s 2020 recognized in the years of which the plan amendment legislation to make adjustments for the rate of course of operations and are measured at the Financial Statements reflect this reality. occurred. contributions to cover any actuarial deficiencies exchange amount. of these plans. Contributions represent the total Marketing and Sales Expenditures The unamortized actuarial gains and losses incurred pension obligations of the CTC for these employees Related parties also include key management In a response to border closures and travel prior to the plan settlement that relate to the and are charged to operations during the year in personnel (KMP) having authority for planning, restrictions, the CTC shifted its marketing programs obligation settled are recognized in the period of which the services are rendered. The US plan has controlling, and directing the activities of the CTC, from international to domestic travel markets. settlement. This amount is included as part of the been closed to new entrants effective December 31, as well as their close family members. The CTC Pivoting to domestic tourism economic recovery gain or loss arising on settlement. Gains and losses 2019 and the benefits frozen at that date. has defined its KMP to be members of the Board of resulted in a significant decline of $42,238,000 in determined upon a plan settlement are accounted Directors and management employees at the Senior marketing and sales expenditures. The total for in the Statement of Operations in the period of Gains and losses determined upon a plan curtailment Vice-President level and above. marketing and sales expenditures at December 31, settlement. are accounted for in the period of curtailment. 2020 was $71,667,000 ($113,905,000 — 2019).

52 53 DESTINATION CANADA Annual Report 2020

Partner revenues Contractual obligations The CTC paused marketing activities at the end of Due to the pivot from international to domestic 5. Portfolio investments March 2020 in anticipation of resuming initiatives travel markets, the CTC has reduced the value of later in the year. However, as restrictions on travel international marketing related contracts and retainer The CTC holds portfolio investments consisting of Canadian provincial governmental bonds with maturity dates increased and borders remained closed, it became fees. The total contractual obligations of the CTC staggered between 2021 and 2031 and guaranteed investment certificates with maturity dates staggered evident that the planned 2020 initiatives would not as at December 31, 2020 are $62,616,000 between 2021 and 2024: resume. The CTC amended and cancelled numerous ($128,902,000 — 2019). partnership agreements which resulted in a decline FINANCIAL in cash partner revenues. The CTC also performed Future impact on operations FINANCIAL Issuer Maturity Cost Interest Carrying Market Maturity SUMMARY SUMMARY (in thousands of Canadian dollars) $940,000 in non-cost recovered research and The CTC will continue to focus on the domestic travel Date Accrued Value Value Notes to Notes to to Date the financial waived $175,000 in registration revenues. The total market well into 2021. Partner revenues are expected the financial statements statements Province of Nova Scotia Bond 02-Dec-21 60 20 80 82 82 partner revenues at December 31, 2020 was to remain low in 2021 as restrictions on travel $3,143,000 ($22,485,000 — 2019). continue. The duration and future impact of the Province of Ontario Bond 02-Dec-23 47 18 65 69 70 pandemic on the CTC’s operations are unknown Province of Ontario Bond 02-Dec-25 51 21 72 80 84

Deferred revenue at this time. As a result, an estimate of the financial Province of BC Bond 18-Dec-28 32 14 46 53 59 Some of the CTC’s traditional partners had the capital impact of COVID-19 on the CTC’s future results of Province of Ontario Bond 02-Dec-31 33 17 50 58 70 pool available to invest in 2021 marketing initiatives. operations and financial position cannot be made President’s Choice Bank GIC 06-Dec-21 100 — 100 100 104 Rather than cancelling the partnerships, the CTC at this time. amended the agreements with these organizations Equitable Bank GIC 06-Dec-22 100 — 100 100 107 and recorded deferred revenues of $1,845,000 4. Cash and cash equivalents Effort Trust GIC 06-Dec-23 100 — 100 100 109 ($488,000 — 2019). Bank of Nova Scotia GIC 06-Dec-24 100 — 100 100 112

(in thousands of Canadian dollars) 623 90 713 742 797 Prepaid expenses 2020 2019 In 2020, the CTC committed $31,400,000 in Cash in bank 37,660 31,518

investments with provincial and territorial marketing Mutual funds 124 123 organizations and the Indigenous Tourism Total cash and Association of Canada to support the recovery of cash equivalents 37,784 31,641 communities. These partners are responsible for delivering locally led marketing programs between 2020 and 2021 and they assume the financial risk of conducting the marketing activities. The CTC recognizes expense evenly over the effective life of the contract. Cash payments for which the related marketing activity has not yet taken place are recognized as a prepaid expense. In 2020, $3,660,000 of the prepaid expenses were in relation to the domestic marketing program. $2,037,000 of the remaining prepaid expenses are the same type of prepaid as in the prior year ($1,721,000 — 2019).

54 55 DESTINATION CANADA Annual Report 2020

6. Foreign currency translation 7. Tangible capital assets

The CTC is exposed to currency risk as a significant portion of its revenues and expenses are earned or (in thousands of Canadian dollars) incurred, and subsequently received or paid in currencies other than Canadian dollars. Currency risk arises due Computer Computer Leasehold Office 2020 Hardware Software Improvements* Furniture Total to fluctuations in foreign exchange rates, which could affect the CTC’s financial results. The CTC does not hedge Cost of tangible capital assets, opening 632 19 2,123 352 3,126 against fluctuations in foreign exchange rates and accepts the operational and financial risks associated with any such fluctuations. Acquisitions 57 — — — 57 FINANCIAL FINANCIAL Disposals (18) (19) (175) (12) (224) SUMMARY SUMMARY The undernoted accounts excluding Canadian-denominated balances comprise the following currencies as at Notes to Notes to the financial December 31, 2020: the financial Cost of tangible capital assets, closing 671 — 1,948 340 2,959 statements statements Accumulated amortization, opening 464 19 988 242 1,713

Currency Cash Accounts receivable Accounts payable Amortization expense 92 — 196 42 330 (in thousands) & accrued liabilities Disposals (18) (19) (171) (12) (220) Currency Canadian Currency Canadian Currency Canadian units equivalent units equivalent units equivalent Accumulated amortization, closing 538 — 1,013 272 1,823 Australian Dollars 72 $70 — — 42 $42

Chinese Yuan 525 $103 — — 586 $115 Net book value 133 — 935 68 1,136

Euros 88 $138 — — 8 $12

Great Britain Pounds 135 $234 — — 75 $130 (in thousands of Canadian dollars) Japanese Yen 84 $1 — — 9,132 $113 Computer Computer Leasehold Office 2019 Hardware Software Improvements* Furniture Total United States Dollars 262 $334 — — 23 $30 Cost of tangible capital assets, opening 690 19 1,989 275 2,973 Total Canadian equivalent $880 — $442 Acquisitions 145 — 144 97 386

Disposals (203) — (10) (20) (233)

At December 31, 2020, if the above foreign currencies had strengthened by 10% against the Canadian Cost of tangible capital assets, closing 632 19 2,123 352 3,126 dollar, with all other variables held constant, the unrealized foreign exchange gain would have increased by

approximately $44,000 (increased by $19,000 — 2019). If the above foreign currencies had weakened by 10% Accumulated amortization, opening 560 18 805 208 1,591 against the Canadian dollar, with all other variables held constant, the unrealized foreign exchange gain would Amortization expense 107 1 193 54 355 have decreased by approximately $44,000 (decreased by $19,000 — 2019). The amount of realized foreign Disposals (203) — (10) (20) (233) exchange losses recorded under “Corporate services” on the statement of operations in 2020 is $45,000 ($12,000 — 2019). Accumulated amortization, closing 464 19 988 242 1,713

Net book value 168 — 1,135 110 1,413

* Asset retirement costs are included in the cost of tangible capital assets and accumulated amortization.

Substantially all of the CTC’s tangible capital assets are located in Canada. There are no assets legally restricted for the purpose of settling asset retirement obligations.

56 57 DESTINATION CANADA Annual Report 2020

Defined contribution plans Effective January 2, 2004, pension arrangements 8. Accrued benefit asset/liability include a registered pension plan as well as a Canada supplemental arrangement which provides pension The CTC offers a number of employee future benefit plans covering its employees in Canada and abroad. The CTC established a defined contribution pension benefits in excess of statutory limits. The CTC provides The following table summarizes these plans and the benefits they provide: plan for non-unionized employees in Canada, hired pension benefits based on employees’ years of service on or after August 1, 2005. On January 30, 2007, the and average earnings at the time of retirement. The Canadian unionized employees of the CTC agreed to registered pension plan is funded by contributions participate in the defined contribution plan effective from the CTC and from the members. In accordance FINANCIAL Employees Accounting FINANCIAL March 8, 2007. This decision impacted unionized with pension legislation, the CTC contributes amounts SUMMARY covered Name of the plan Nature of the plan Contributors treatment SUMMARY employees hired on or after August 1, 2005. determined on an actuarial basis and has the ultimate Notes to Notes to the financial Canada Registered Pension Plan for the Employees Funded, Defined the financial responsibility for ensuring that the liabilities of the plan statements statements of the CTC – Defined Benefit component Benefit Plan The total cost for the CTC’s defined contribution are adequately funded over time. The supplemental pension plans was $610,000 in 2020 ($549,000 retirement plan liabilities arising on and after January Registered Pension Plan for the Combination of Employees of the CTC – Defined Defined Contribution — 2019). 2, 2004 are funded annually on a hypothetical plan CTC Contribution component Plan and Group RRSP termination basis according to the valuation report In addition, the CTC provides a defined contribution prepared by the actuary. CTC & PLAN Supplementary Retirement Plan for Certain Partly funded, MEMBERS supplemental plan to cover senior employees whose Employees of the CTC – Defined Benefit Defined Benefit Plan contributions under the defined contribution plan is In 2016, the CTC offered former members of the DEFINED component BENEFIT PLAN impacted by the Income Tax Act. The benefits accrued defined benefit component of the registered plan Supplementary Retirement Plan for Defined are paid out each year and deemed immaterial for the who were entitled to a deferred pension the option to DEFINED Certain Employees of the CTC – Defined Contribution Plan CONTRIBUTION Contribution component CTC’s financial statements. transfer the value of the pension benefits out of the PLAN registered plan. There were no related settlements in Non-Pension Post-Retirement Benefit Unfunded, Defined US and UK 2019 or 2018. The defined benefit component of the Plan for Canadian Employees Benefit Plan The CTC also participates in multi-employer defined registered plan and the supplemental agreement was benefit plans providing pension benefits to employees closed effective December 30, 2017 and benefits for China, Japan Pension Plan for Employees of the Unfunded, Defined & South Korea CTC in China, Japan and South Korea Benefit Plan working in the US and in the UK. In 2020, the total participants were frozen as of that date. cost was $183,000 for the UK plan and there was no US Qualified Pension Plan for US Citizen Funded Multi-employer cost paid in relation to the US plan ($228,000 — 2019). In May 2019, the CTC purchased a group annuity Employees Working in the US Defined Benefit Plan The plans are accounted for as defined contribution buy-out from a third-party insurer for the defined

Registered Pension Plan for Canadian Funded Multi-employer plans. The US plan has been closed to new entrants benefit component of the Registered Pension Plan Citizen Employees Working in the US Defined Benefit Plan effective December 31, 2019 and the benefits were (“RPP”) for a premium of $30,195,000 and transferred frozen at that date. substantially all assets and obligations of all "Non-Pension Post-Retirement Benefit Unfunded, Defined Plan for Certain US Employees" Benefit Plan members of the defined benefit component of the Defined benefit plans RPP to the insurer. The insurer began making UK Canadian High Commission Locally Funded Multi-employer payments to the members in August 2019 and the Engaged Staff Pension Scheme Defined Benefit Plan Canada transaction was finalized in October 2019, the date

Canada, China, Severance Benefits for certain Canadian Unfunded, Defined The CTC has a number of defined benefit plans after which premium adjustments were no longer Japan, US, UK and Locally Engaged Employees Benefit Plan in Canada which provide post-retirement and allowed. The form and amount of the benefit post-employment benefits to its employees. payments for the members did not change and are Non-Vested Sick Leave Benefits for certain Unfunded, Defined fixed, subject to an annual increase that reflects the Canadian and Locally Engaged Employees Benefit Plan same terms and conditions that would have applied

58 59 DESTINATION CANADA Annual Report 2020

under the RPP. The transaction resulted in a plan Severance and post-retirement benefits CHANGE IN ACCRUED BENEFIT OBLIGATION settlement and a plan settlement cost of $8,936,000 Severance benefits are provided for certain current was recognized in the Statement of Operations in the employees in Canada, China, Japan and the UK. (in thousands of Canadian dollars) Pension Other Benefit Plans period of settlement. The cost of the benefits is fully paid by the CTC. The severance benefit plans are unfunded. 2020 2019 2020 2019 Amendments proposed to the Pension Benefits Accrued benefit obligation, beginning of year 3,700 31,028 4,683 4,755 Standard Act (“PBSA”) 1985 under section 17.2 permit Post-retirement benefits which may include health, Current period benefit cost (employer portion) 56 24 68 58 an administrative discharge on the purchase of a life dental and life insurance are provided for certain retired Interest cost on average accrued benefit obligation 88 609 69 113 FINANCIAL annuity in lieu of providing a pension benefit. This employees in Canada and the US. US employees hired FINANCIAL SUMMARY SUMMARY Benefits paid (141) (1,548) (254) (92) proposed section of the PBSA received Royal Assent prior to 2001 were eligible for post-retirement benefits. Notes to Notes to the financial on June 21, 2019 but is not yet in force. The plan These plans are administered by Global Affairs Canada the financial Plan settlement — (30,194) — — statements statements settlement is a significant transaction requiring and provided by United Healthcare. The cost of these Plan curtailment — — (1,224) —

the use of judgment in applying accounting policy. benefits is shared by the CTC and the retirees. Plan amendment — — (262) — Key judgments made by management include the The post-retirement benefit plans are unfunded. Actuarial loss (gain) (358) 3,781 369 (151) expectation that section 17.2 will come into force in Accrued benefit obligation, end of year 3,345 3,700 3,449 4,683 the future and that the federal regulations, once Measurement date and date of developed, will provide a retroactive application actuarial valuation to this transaction. The most recent actuarial valuation of plans CHANGE IN PLAN ASSETS accounted for as defined benefit plans was as China, Japan and South Korea at September 30, 2020, with extrapolation to (in thousands of Canadian dollars) The CTC has a defined benefit pension plan for December 31, 2020. Pension Other Benefit Plans

certain locally engaged staff in China, Japan and 2020 2019 2020 2019 South Korea. The Pension Scheme for Employees The CTC measures its accrued benefit obligations Market value of plan assets, beginning of year 4,492 34,645 — — of the Government of Canada Locally Engaged and the market value of plan assets of its pension Actual return on plan assets net of actual investment expenses 93 1,224 — — Outside Canada, 1996 (known as the World Wide plans and post-retirement non-pension benefits Plan, “WWP”), provides retirement benefits based for accounting purposes at September 30th of Employer contributions (159) 365 254 92 on employees’ years of service and average earnings each year. Benefits paid (141) (1,548) (254) (92)

at the time of retirement. These liabilities are funded Plan settlement — (30,194) — — on a pay-as-you-go basis. Market value of plan assets, end of year 4,285 4,492 — —

In March 2012, the CTC received $1,000,000 from Treasury Board Secretariat (“TBS”) relating to locally engaged staff pension benefits under the WWP for service prior to January 2, 2001. Prior to this, TBS had been reimbursing the CTC for amounts related to the past service period. The funds are held by the CTC in bonds and a money market term deposit and are recorded as portfolio investments (Note 5) and cash and cash equivalents (Note 4). The CTC continues to be responsible for the service accruing on and after January 2, 2001.

60 61 DESTINATION CANADA Annual Report 2020

RECONCILIATION OF FUNDED STATUS The cumulative excess of pension contributions on the Registered Pension Plan and Supplementary Retirement Plan over pension benefit cost is reported as an accrued benefit asset. The Pension Plan for Employees of the CTC in China, Japan, and South Korea, the post-retirement, post-employment benefits and sick leave are Detailed Pension Plan information reported as an accrued benefit liability. (in thousands of Canadian dollars) 2020 2019

Defined benefit component of Pension Plan for Employees of the CTC

Accrued benefit obligation — — Accrued Benefit Asset (Liability) (in thousands of Canadian dollars) 2020 2019 Plan assets — 220 Registered Pension Plan for the Employees of the CTC — 220 FINANCIAL Surplus — 220 FINANCIAL SUMMARY SUMMARY Defined benefit component of the Supplementary Retirement Plan 1,450 1,433 Notes to Notes to for Certain Employees of the CTC the financial Supplementary Retirement Plan for Certain Employees of the CTC the financial Total accrued benefit asset 1,450 1,653 statements statements Accrued benefit obligation (2,397) (2,860)

Plan assets 4,285 4,272 Pension Plan for the Employees of the CTC in China, Japan and South Korea (613) (590)

Surplus 1,888 1,412 Non-pension Post Retirement Benefit Plan (2,656) (4,132)

Post Employment Severance Plan (297) (540) Pension Plan for Employees of the CTC in China, Japan and South Korea Non-Vested Sick Leave Plan (183) (173) Accrued benefit obligation (947) (840) Total accrued benefit liability (3,749) (5,435) Deficit (947) (840) Total net accrued benefit asset (2,299) (3,782)

The accrued benefit obligation and market value of assets at year-end are the following amounts in respect of plans that are unfunded: The weighted-average asset allocation by asset category of the CTC’s defined benefit pension plans is as follows:

Funded Status Pension Other Benefit Plans (in thousands of Canadian dollars) Asset Allocation 2020 2019 2020 2019 2020 2019 Equity securities 56% 53% Accrued benefit obligation (947) (840) (3,449) (4,683) Cash 1% 5% Funded status — deficit at end of year (947) (840) (3,449) (4,683) Receivable from Government of Canada 43% 42%

Total 100% 100%

RECONCILIATION OF FUNDED STATUS TO ACCRUED BENEFIT ASSET (LIABILITY)

(in thousands of Canadian dollars) Pension Other Benefit Plans

2020 2019 2020 2019

Funded status — surplus (deficit), end of year 942 792 (3,449) (4,683)

Unamortized actuarial (gains) losses (105) 271 314 (162)

Accrued benefit asset (liability) 837 1,063 (3,135) (4,845)

62 63 DESTINATION CANADA Annual Report 2020

NET BENEFIT COST RECOGNIZED IN THE PERIOD SIGNIFICANT ACTUARIAL ASSUMPTIONS USED ARE AS FOLLOWS (WEIGHTED AVERAGE)

(in thousands of Canadian dollars) Pension Other Benefit Plans Pension Other Benefit Plans

2020 2019 2020 2019 2020 2019 2020 2019

Current period benefit cost 56 24 68 58 Accrued benefit obligation Discount rate Interest cost — — 69 113 • Registered Pension Plan for the Employees of the CTC N/A N/A Plan settlement cost* — 8,936 — — • Defined benefit component of the Supplementary FINANCIAL FINANCIAL 2.40% 2.70% SUMMARY Plan curtailment — — (1,224) — SUMMARY Retirement Plan for Certain Employees of the CTC Notes to Notes to • Pension Plan for the Employees of the CTC in China, Plan amendment — — (262) — 0.48% 1.37% the financial the financial Japan and South Korea statements Amortization of net actuarial loss (gain) 39 827 (106) (90) statements • Non-pension post retirement 0.99% 1.51% Retirement benefits expense 95 9,787 (1,455) 81 • Post employment severance 0.48% 1.37%

Interest cost on average accrued benefit obligation 88 609 ­— —­ • Non-Vested Sick Leave Plan 0.48% 1.37%

Expected return on average pension plan assets (114) (686) —­ —­ Consumer price index

Retirement benefits interest income (26) (77) —­ —­ • Registered Pension Plan for the Employees of the CTC N/A N/A

Total pension expense 69 9,710 (1,455) 81 • Defined benefit component of the Supplementary 2.00% 2.00% Retirement Plan for Certain Employees of the CTC * Includes $3,579,000 loss and $5,357,000 amortization of actuarial losses in 2019. • Pension Plan for the Employees of the CTC in China, 0.79% 1.05% Japan and South Korea

Rate of compensation increase

• Canadian N/A N/A 2.50% 2.50%

• Locally engaged 2.75% 2.75% 3.40% 3.40%

Pension expense Discount rate

• Registered Pension Plan for the Employees of the CTC N/A 3.00%

• Defined benefit component of the Supplementary 2.70% 2.65% Retirement Plan for Certain Employees of the CTC • Pension Plan for the Employees of the CTC in China, 1.37% 2.40% Japan and South Korea

• Non-pension post retirement 1.51% 2.43%

• Post employment severance 1.37% 2.40%

• Non-Vested Sick Leave Plan 1.37% 2.40%

Expected long-term rate of return on plan assets

• Defined benefit component of the Supplementary 2.70% 2.65% Retirement Plan for Certain Employees of the CTC

• Locally engaged 2.75% 2.75% 3.40% 3.40% 64 65 DESTINATION CANADA Annual Report 2020

ASSUMED HEALTH CARE COST TREND RATE FOR OTHER BENEFIT PLANS 9. Parliamentary appropriations Net benefit cost Other benefit plans Other benefit plans The schedule below reconciles the amount of funding available to the CTC during the year with the amount 2020 2019 actually used in operations: CDN US CDN US

Initial health care trend rate 5.74% 7.43% 5.79% 7.65% (in thousands of Canadian dollars) 2020 2019 Ultimate health care trend rate 4.00% 4.50% 4.00% 4.50% FINANCIAL FINANCIAL Amounts provided for operating and capital expenditures Year ultimate rate reached 2040 2033 2040 2033 SUMMARY SUMMARY Amounts voted: Notes to Notes to the financial the financial Main estimates 2019/20* (2018/19) 100,666 95,656 statements statements Supplementary estimates A — 27 Accrued benefit obligation Other benefit plans Other benefit plans Supplementary estimates B — 3,000 2020 2019 100,666 98,683 CDN US CDN US Less: portion recognized in prior year (76,750) (73,212) Initial health care trend rate 5.69% 7.23% 5.74% 7.43% Amounts recognized in current year 23,916 25,471 Ultimate health care trend rate 4.00% 4.50% 4.00% 4.50%

Year ultimate rate reached 2040 2033 2040 2033 Amounts voted:

Main estimates 2020/21 (2019/20)* 95,666 100,666

95,666 100,666 Total cash amounts Total cash amounts for employee future benefits, consisting of cash contributed in the normal course of Less: portion to be recognized in following year (23,916) (23,916) business by the CTC to its funded and unfunded defined benefit pension plans, cash payments directly to Amounts recognized in the current year 71,750 76,750

beneficiaries for its unfunded other benefit plans, cash contributed to its defined contribution plans and Parliamentary appropriations used for operations and capital in the year 95,666 102,221 cash contributed to its multi-employer defined benefit plan, are $1,336,000 ($1,161,000 — 2019). * Includes one-time funding Vote 5 $5,000,000 within 2019/20 Main Estimates for Launching a Federal Strategy on Jobs and Tourism.

10. Accumulated surplus

The accumulated surplus comprises:

(in thousands of Canadian dollars) 2020 2019

Accumulated operating surplus 36,530 16,906

Accumulated remeasurement gain (loss) 51 (194)

Accumulated surplus 36,581 16,712

66 67 DESTINATION CANADA Annual Report 2020

11. Marketing and sales expenses 12. Expenditures by object

The CTC carries out its activities in a variety of countries. These countries are supported by the CTC’s Corporate The following is a summary of expenditures by object: Marketing and Sales units, located at headquarters including Global Marketing, Global Platforms and Events, and Research. Geographical information is as follows:

Program expenses FINANCIAL (in thousands of Canadian dollars) 2020 2019 FINANCIAL SUMMARY SUMMARY Consumer development 47,569 69,681 Notes to Domestic Program 28,997 — Notes to the financial the financial Trade development 6,959 20,918 Global Marketing 9,692 12,562 statements statements Public and media relations 3,456 5,849 North America 8,481 35,727 Program Research 3,795 4,582 Europe and India 7,085 24,803 Travel and hospitality 257 1,402 Asia Pacific 6,173 24,387 Total program expenses 62,036 102,432 Business Events 4,172 10,054

Research 4,100 3,809 Salaries and benefits 13,915 15,477 Global Platforms and Events 2,967 2,563

71,667 113,905 Plan settlement cost — 8,936

Operating expenses

Professional services 1,402 1,387

Rent 1,173 1,230

Information technology 644 718

Office 514 630

Travel and hospitality 138 539

Other 349 83

Realized foreign exchange loss (gain) 45 (12)

Total operating expenses 4,265 4,575

Expenses before amortization 80,216 131,420

Amortization 330 355

Total expenses 80,546 131,775

68 69 DESTINATION CANADA Annual Report 2020 13. Financial instruments have the following long-term bank deposit credit Liquidity risk and financial strength ratings: Liquidity risk is the risk that the CTC will not be able to meet all cash outflow obligations as they come due. To Credit risk mitigate this risk, the CTC monitors cash activities and expected outflows through monthly and quarterly budget The CTC is exposed to credit risk resulting from the Credit Ratings and forecast analysis. In addition, investments are maintained in assets that may be converted to cash in the near

possibility that parties may default on their financial Moody’s Aa3 A2 Aa2 term if unexpected cash outflows arise. The amounts of financial liabilities past due at year-end are as follows: obligations and from concentrations of third-party Standard & Poor’s A+ A A+ financial obligations that have similar economic ACCOUNTS PAYABLE (in thousands of Canadian dollars) characteristics such that they could be similarly FINANCIAL affected by changes in economic conditions. In March 2012, the CTC received $1,000,000 from FINANCIAL SUMMARY SUMMARY Total Current 1 – 30 days 31 – 60 days 61 – 90 days 91 – 120 days > 120 days There is no concentration of credit risk with any Treasury Board Secretariat relating to locally engaged Notes to Notes to the financial one customer. Financial instruments that potentially staff pension benefits under the WWP (Note 8). the financial Trade 3,427 2,689 738 — — — — statements statements expose the CTC to credit risk consist of cash and The CTC’s policy is to invest these funds with Employee compensation 2,182 2,182 — — — — —

cash equivalents, portfolio investments and accounts well-established financial institutions in investments Government of Canada 75 75 — — — — — receivable. composed of low risk assets. Currently the CTC Total 5,684 4,946 738 — — — — has invested these funds in Canadian provincial At December 31, 2020, the exposure to credit risk governmental bonds, guaranteed investment for cash and cash equivalents is $37,784,000 certificates and mutual funds (Note 4 and Note 5). There have been no significant changes from the previous year in the exposure to risk or policies, procedures ($31,641,000 — 2019) (Note 4) and for portfolio All investments are monitored by management on and methods used to measure the liquidity risk. investments is $713,000 ($803,000 — 2019) (Note 5). a monthly basis.

The CTC minimizes credit risk on cash and cash Accounts receivable credit risk is minimized by the Currency risk Interest rate risk equivalents and portfolio investments by dealing fact that many of the partners that work with the Currency risk arises due to the fact that the CTC Interest rate risk is the potential for financial loss only with reputable and credit worthy financial CTC are federally, provincially or municipally funded. operates in several different currencies and translates caused by fluctuations in fair value or future cash institutions. At December 31, 2020, the CTC held The CTC measures its exposure to credit risk based non-Canadian revenue and expenses to Canadian flows of financial instruments because of changes in $37,493,000 in cash and cash equivalents and on how long the amounts have been outstanding. dollars at different points in time. The CTC does not market interest rates. The CTC is exposed to this risk portfolio investments with federally regulated An impairment allowance is set up based on the hedge against fluctuations in foreign exchange rates through its interest bearing portfolio investment chartered banks and $1,002,000 in cash at foreign CTC’s historical experience regarding collections. and accepts the operational and financial risks balances. The CTC does not hedge against institutions. The federally regulated chartered banks At December 31, 2020, there is no impairment associated with any such fluctuations. At December fluctuations in market interest rates and accepts the and foreign institutions which the CTC holds cash allowance ($0 — 2019). The amounts past due at 31, 2020, the exposure to currency risk based on the operational and financial risks associated with any and cash equivalents and portfolio investments with year-end are as follows: year-end monetary balances denominated in a foreign such fluctuations. A variation of 1% in the interest rate currency for financial assets is $880,000 ($1,521,000 would not have a material impact on the financial — 2019) and for financial liabilities is $442,000 statements. At December 31, 2020, the exposure to ACCOUNTS RECEIVABLE (in thousands of Canadian dollars) ($1,337,000 — 2019) (Note 6). The impact of a 10% interest rate risk for portfolio investments was change in foreign exchange rates would not have a $713,000 ($803,000 — 2019). Total Current 1 – 30 days 31 – 60 days 61 – 90 days 91 – 120 days > 120 days material impact on net operations.

Partner 1,306 1,284 18 4 — — — There have been no significant changes from the There have been no significant changes from the previous year in the exposure to risk or policies, Government of Canada 418 418 — — — — — previous year in the exposure to risk or policies, procedures and methods used to measure the Other 1 — — 1 — — — procedures and methods used to measure the interest rate risk. Total 1,725 1,702 18 5 — — — currency risk.

There have been no significant changes from the previous year in the exposure to risk or policies, procedures 70 and methods used to measure the credit risk. 71 DESTINATION CANADA Annual Report 2020 14. Contractual obligations 16. Related party transactions

The CTC has entered into various agreements for The CTC enters into transactions with all Government marketing and consulting services and leases for of Canada created departments, agencies, and GOVERNANCE office premises and equipment in Canada and Crown corporations in the normal course of business. abroad. The total contractual obligations of the Details of these transactions are provided in Note 9 CTC as at December 31, 2020 are $62,616,000 and Note 13. ($128,902,000 — 2019). Also included in the FINANCIAL contractual obligation amount are purchase orders There were no significant transactions with KMP XX SUMMARY XX issued for which the CTC has not yet received the and their close family members, nor were there any Notes to the financial goods or services. transactions that have occurred at a value different statements from which would have been arrived at if the parties (in thousands of Canadian dollars) were unrelated.

2021 52,231 2022 6,181 17. Contractual rights 2023 2,350 The nature of the CTC’s activities can result in some 2024 1,299 multi-year contracts and agreements that result in 2025 555 the CTC having rights to both assets and revenue in Total 62,616 the future. These arrangements typically relate to marketing services. Where the terms of contracts and agreements allow for reasonable estimates, 15. Contingencies the major contractual rights are summarized in the table presented below.

In the normal course of business, various legal claims (in thousands of Canadian dollars) 2021 2022 Total and lawsuits have been brought against the CTC. Marketing Revenue 19 — 19 Where in the opinion of management, losses, which Other Revenue 930 140 1,070 may result from the settlement of the matters, are 949 140 1,089 determinable within a reasonable range and such losses are considered by management as likely to be incurred, they are charged to expenses. In the event management concludes that potential losses are 18. Comparative figures indeterminable, no provision is recognized in the accounts of the CTC. There are no significant legal The CTC changed the presentation of the Marketing claims against the CTC. and Sales expenses to better reflect program spend. The prior year’s comparatives have been restated to reflect the current year presentation. Refer to Note 11.

72 73 DESTINATION CANADA Annual Report 2020 MEMBERSHIP AS AT DECEMBER 31, 2020

GOVERNANCE GOVERNANCE Legislative Legislative Board of Board of framework directors — Board of framework directors directors Ben Cowan-Dewar Marsha Walden Simon Kennedy Patti Balsillie, BA, ICD.D As an agent of the Crown, we are Our Board of Directors consists of Chair of the Board of Directors President & CEO, (ex officio) Tourism, Innovation and Destination Canada Deputy Minister, Innovation, Northern Strategist a federal Crown corporation wholly up to 12 members who oversee the Science & Economic owned by the Government of management of the organization Development Canada. We are provided with and provide strategic guidance overarching public policy priorities, and oversight.

broad strategic goals and The Board ensures that appropriate systems of expectations. governance, leadership and stewardship are in place while at the same time empowering management to The Canadian Tourism Commission Act and various deliver on its mandate. regulations provide the legislative basis for our establishment and our activities. Through the Minister Board membership comprises the Chair and the of Economic Development and Official Languages, President and CEO of Destination Canada which Julie Canning Zita Cobb Stan Cook Randy Garfield Cowgirl & Operating Co-founder & CEO, Former Owner & President, Former President, we are accountable to Canada’s Parliament through the are Governor-in-Council appointments, and the Partner, Banff Trail Riders Shorefast Foundation Stan Cook Sea Kayak Walt Disney Travel submissions of an Annual Report, a five-year Corporate Deputy Minister of Innovation, Science and Economic Adventures Plan and an Operating and Capital Budget annually to Development Canada (ex officio). Further, up to nine Parliament. additional directors, appointed by the Minister with Governor-in-Council approval, make up the remainder of the Board. Directors are appointed based on the full range of skills, experience and competencies required to add value to our decisions on strategic opportunities and risks.

Members with expired terms continue to serve on the Board until their replacements have been appointed. Monique Gomel Pat Macdonald, ICD.D Dragan Matovic Andrew Torriani Vice-President, Global Marketing Co-founder & CEO, Chairman & CEO, President, CEO & General

Over the course of 2020, the Board met six times & Communications, United Craft, Inc. Halex Capital Inc. Manager, Ritz-Carlton and average attendance at meetings was 94%. Rocky Mountaineer Montréal

74 75 DESTINATION CANADA Annual Report 2020

Executive team

AS AT DECEMBER 31, 2020

GOVERNANCE GOVERNANCE The President and CEO is accountable to the Board Board of Executive team and has responsibility for the day-to-day operations. directors Senior Management plays a vital role in strategic leadership, working closely with the Board to set COMMITTEES objectives, develop strategies, implement actions OF THE BOARD ADVISORY COMMITTEES and manage performance. Senior management also recommends to the Board sweeping changes, identifies Marsha Walden Anwar Chaudhry, From time to time, the Board creates advisory business risks and manages the complex intellectual, The Human Resources, Governance and Nominating President & CEO, CPA, CA committees to advise it on how best to deliver our capital and technical resources of Destination Canada. Committee advises and supports directors in applying Destination Canada Senior Vice President, programs and services. The committees take their our corporate governance principles, assists in Finance and Risk, and direction from, and report to, the Board. Composed In the summer of 2020, we welcomed Marsha Walden evaluating potential board candidates and develops Chief Financial Officer primarily of members from private sector tourism as the new President and CEO of Destination Canada. recommendations to the Minister on board entities, these committees play an important role in Ms. Walden’s career spans leadership roles in appointments (excluding the Chair, the President linking Destination Canada to the tourism industry. strategy and organizational renewal, marketing and and CEO and the ex officio director). Additionally, communications, corporate social responsibility, the committee reviews and advises on the President We have the following three advisory committees: operations management, and business innovation. and CEO’s annual objectives and our human resources Business Events Canada Advisory Committee Prior to joining Destination Canada, she served as the policies, plans and processes, including succession, • Leisure Marketing Advisory Committee President and CEO of Destination British Columbia compensation and benefits plans. • • Research Advisory Committee since 2013.

The committee met three times in 2020 and average Gloria Loree Sarah Sidhu meeting attendance was 93%. Senior Vice President, General Counsel and Marketing Strategy and Chief Corporate Secretary In addition to the duties and functions mandated by Marketing Officer the Financial Administration Act, the Audit and Pension Committee reviews and recommends to the Board processes for identifying and managing risk, internal control systems and processes for complying with related laws and regulations. The committee also oversees the administration, investment activities and financial reporting of our pension plans.

The committee met five times in 2020 and average meeting attendance was 90%. David Robinson Maureen Riley Vice President, Strategy and Vice President, International Stakeholder Relations 76 77 PROPELLING RECOVERY DESTINATION CANADA

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About this publication

Executive Summary

1 introduction, 2 global travel and tourism, 3.1 general, 3.2 key details for 2019, 3.3 travel by canadians, 3.4 indigenous tourism, 3.5 canada–united states tourism, 3.6 international competitiveness, 4.1 destination canada, 4.2 federal tourism strategy, 4.3.1 2008–2013, 4.3.2 2016–2017, 4.3.3 2019, 4.3.4 2021, 4.4 other government players, 5 looking ahead.

Canada’s multi-billion-dollar tourism sector employs hundreds of thousands of Canadians and is supported by all levels of government.

In 2020, due to the COVID-19 pandemic, global tourism and travel sector revenue decreased by 49% from the previous year, to US$4.7 trillion. Global tourism employment fell by 19% to 272 million jobs. Similarly, the Canadian sector earned $49.5 billion in 2020, a decline of 40% from 2019, while domestic employment fell to 1.6 million direct and indirect jobs, a decrease of 24%. About 28% of Canadian tourism revenue is generated from inbound visits.

In 2019, Canadians made 37.8 million foreign trips consisting mainly of 27.1 million visits to the United States. Additionally, Canadians made 10.7 million trips to other countries, most frequently Mexico (1.8 million), Cuba (964,000), the United Kingdom (770,000), China (666,000) and Italy (619,000).

According to the World Economic Forum’s Travel & Tourism Competitiveness Report 2019 , which ranks the most competitive countries for travel and tourism, Canada ranked ninth out of 140 countries studied, down from eighth place in 2013. Canada ranked first in several sub-categories, such as safety and security, environmental sustainability and air transport infrastructure. Conversely, Canada was found to be deficient in several areas, including price competitiveness and international openness.

Other studies have found that tourism demand is concentrated in Canada’s largest cities, with Toronto, Vancouver and Montréal accounting for 75% of overall visitors and most of this activity taking place during the summer months. There are also challenges stemming from labour shortages, a lack of investment and promotion, and a lack of coordination of tourism policy between all levels of government.

Destination Canada (formerly the Canadian Tourism Commission) is a federal Crown corporation responsible for national tourism marketing and is governed by the Canadian Tourism Commission Act . In 2019, the federal government announced Creating Middle Class Jobs: A Federal Tourism Growth Strategy , which is based on the following three pillars: building tourism in Canada’s communities; attracting investment to the visitor economy; and renewing the focus on public-private collaboration.

Between 2008 and 2020, the federal government invested approximately $1 billion in the tourism industry. In 2021, it announced another $1 billion in funding, including the Tourism Relief Fund.

If international borders continue to reopen and the industry continues its steady overall growth of the recent years prior to the pandemic, it will again contribute to Canada’s economic well-being. And although the United States continues to be Canada’s biggest tourism trading partner, stakeholders might continue their efforts of focusing on more growth-oriented, lucrative emerging markets to better diversify tourism interests to help Canada fulfil its tourism potential.

Canada’s tourism industry is an important contributor to Canadian economic growth. This industry – which comprises hospitality and travel services to and from Canada – is a multi-billion-dollar business that employs hundreds of thousands of Canadians and is supported by all levels of government. This HillStudy provides information about Canada’s tourism industry, travel patterns of visitors to and from Canada, the importance of the United States (U.S.) to Canada’s tourism economy and the role of the federal government.

The global tourism sector suffered substantial declines in activity due to the COVID-19 pandemic. Since this HillStudy incorporates data from 2019 and 2020, special attention should be paid to both explicit tourism figures and relative comparisons to previous years due to the extraordinary effects of the pandemic.

According to the Tourism Industry Association of Canada, “travel and tourism” includes “transportation, accommodations, food and beverage, meetings and events, and attractions,” such as festivals, historical/cultural institutions, theme parks and nature settings. 1

The World Travel & Tourism Council’s latest annual research explains the COVID 19 pandemic’s impact on the global travel and tourism sector:

  • The sector suffered a loss of almost US$4.5 trillion in revenues worldwide, standing at US$4.7 trillion in 2020.
  • In 2019, the sector contributed 10.4% to the global gross domestic product (GDP); this decreased to 5.5% in 2020 due to ongoing mobility restrictions.
  • In 2020, 62 million jobs were lost, representing a drop of 18.5% of global sectoral employment, leaving just 272 million employed compared to 334 million in 2019.
  • Globally, domestic visitor spending decreased by 45% and international visitor spending declined by 69.4%. 2

3 The Canadian Tourism Industry: Facts and Figures

Only about 28% of Canadian tourism revenue (about $21.3 billion) is generated from inbound visits. The remainder represents domestic spending – i.e., what Canadians spend on domestic and foreign tourism activities. Table 1 provides further information about the industry’s recent performance.

Note: Domestic spending includes spending while on a trip in Canada, spending on airfares with Canadian carriers on outbound trips and spending on tourism-related goods, e.g., camping equipment. International spending includes spending while on a trip in Canada but excludes any pre-trip purchases. GDP refers to gross domestic product.

There are two ways to categorize jobs in tourism:

  • Jobs in tourism-dependent industries – the total number of jobs in industries where a significant portion of the revenue is in tourism; this includes accommodation, passenger transportation, food and beverage, entertainment and recreation, and travel services.
  • Jobs directly supported by tourism – the share of jobs in the economy servicing visitors as opposed to local clients. These are jobs that would not exist without visitors; e.g., in food and beverage, a certain portion caters to local clients, and the portion that caters to visitors is captured in this number.

Figure 1 provides further details about international arrivals to Canada.

Figure 1 – Selected Information on International Arrivals to Canada

This figure shows the change between 2019 and 2020 of the value of tourism in Canada (from $23.1 billion to $4 billion); the total number of overnight arrivals of non-residents (from 22,145,406 to 2,959,885); the number of overnight arrivals from overseas (from 7,140,864 to 1,031,096); and the number of overnight arrivals from the United States (from 15,004,542 to 1,928,789). Typically, over 50% of United States visitors arrive by automobile.

According to Destination Canada, prior to the pandemic, Canada benefited from the fact that the tourism sector was booming globally. Since 2000, tourism has been growing approximately three to four times faster than the global population and about 1.5 times faster than the overall global GDP . Furthermore, notwithstanding the COVID-19 pandemic, this was expected to continue into the mid-2020s. In fact, 2017’s travel and tourism sector growth of 4.6% exceeded the global GDP growth rate of 3.7%; that is, for the seventh successive year, the sector outpaced global GDP growth, which itself had the strongest growth a decade. 3

However, even with this strong performance, Canada’s tourism industry potential remains significantly underdeveloped. Specifically, even though it has outpaced global population and GDP growth, Canadian tourism growth has lagged behind global tourism growth for several years (see section 3.6 of this Hill Study). 4

Moreover, tourism represents a much smaller fraction of Canada’s exports when compared to peer countries such as the U.S., Japan, the United Kingdom and Australia. Studies suggest there is an opportunity for Canada to more than double its international arrivals and associated revenues by 2030. 5 This could be achieved, in part, by capitalizing on “substantial opportunities to increase the number of tourists to Canada from the United Kingdom, China, France, Germany and Australia.” 6

Beyond its role in helping to create revenue and both direct and indirect jobs in the Canadian tourism industry, the efficient promotion of tourism can be seen as a valuable investment in Canada’s overall economy. A 2013 Deloitte study has shown that “a rise in business or leisure travel between countries can be linked to subsequent increases in export volumes to the visitors’ countries.” 7

In 2019, the Canadian tourism sector had its best year on record, reaching 22.1 million international overnight arrivals, a 4.8% increase over the previous year. Similar to other years, the vast majority (67.7%) came from the U.S.; the top three non-U.S. sources of visitors were the U.K. (875,632), China (715,474) and France (668,490). 8

Destination Canada reported that “air and sea arrivals from the Europe region were mostly on par with 2018 levels, with the exception of France, which led the region (+7.0%).” 9 However, there were mixed results from the Asia-Pacific region as the biggest decline came from the region’s largest market, China (-9.1% in air and sea arrivals), with smaller downward trends from Japan (-1.9%) and Australia (-0.4%). More positively, air and sea arrivals from South Korea were slightly ahead of 2018 levels, while India led the region in year-over-year growth (+9.1%). 10

In North America, the U.S. provided an increase in arrivals on overnight trips entering Canada by air and auto of 6.4%. Mexico was the only one of Destination Canada’s long-haul markets to record double-digit year-over-year growth in overnight arrivals by air and sea (12.3%) in 2019. 11

Canada’s rising popularity among Chinese travellers is particularly noteworthy, as China is now Canada’s second-largest overseas tourism source after the U.K. 12 This is partly attributable to Canada’s having been granted Approved Destination Status by the Chinese government. In 2018, Canada welcomed a record 737,000 Chinese tourists, “surpassing the 700K mark for the first time and doubling the number of annual travellers since 2013, with an average annual growth rate of 16%.” 13 Travelling mainly during July and August, “Chinese tourists spend on average about $2,850 per trip to Canada, staying for around 30 nights.” 14

In 2019, Canadians made 37.8 million foreign trips consisting mainly of 27.1 million visits to the U.S. Although travel to the U.S. declined by 2.3% in 2019 compared to 2018, Canadians “spent $21.1 billion on their trips to the United States in 2019, up 4.8% from a year earlier.” 15

Additionally, Canadians made 10.7 million trips to other countries, the most common of which were Mexico (1.8 million), Cuba (964,000), the U.K. (770,000), China (666,000) and Italy (619,000). 16

Canadians also enjoy travelling within the country, making 275 million domestic trips in 2019, down 1.0% from 2018. Spending on trips within Canada declined 0.3% year over year to $45.9 billion. 17 The top locations were Ontario (116.5 million visits), Quebec (56.9 million visits), British Columbia (34.2 million) and Alberta (32.4 million); this includes both intra and inter-provincial/territorial domestic travel. 18

Canada’s Indigenous tourism sector is diverse and comprises different business models. Although its key drivers of employment and GDP come from air transportation and resort casinos, “it is the cultural workers, such as Elders and knowledge keepers, who define many of the authentic Indigenous cultural experiences available to tourists in Canada.” 19 Moreover, when compared with Indigenous tourism enterprises without a cultural focus, those involved in cultural tourism rely more on visitors from foreign markets as part of their customer base.

Prior to the pandemic, Canada’s Indigenous tourism sector had been rapidly outpacing overall Canadian tourism activity. Specifically, the Indigenous tourism sector’s GDP rose 23.2% between 2014 and 2017, reaching $1.7 billion. 20

Lastly, Indigenous tourism businesses cite access to financing as well as marketing support and training as some of the main barriers to growth. 21  

Given its proximity and long shared border, the U.S. is by far the biggest source of Canada’s tourism visitors: in 2018, about two-thirds of all foreign visitors were Americans, 57% of whom arrived by automobile. 22 The U.S. is also the most visited foreign destination by Canadians.

U.S. arrivals to Canada reached 14.44 million in 2018, up 1% over 2017 and the highest level recorded since 2004. American tourists like to take advantage of their long weekends for travel, with Memorial Day (the last Monday in May), Independence Day (4 July) and Labour Day (the first Monday in September) contributing to the largest weekend spikes in road arrivals in 2018. 23

Americans spend around $700 per trip to Canada, staying an average of five nights. In 2018, they preferred mainly nature-based activities, including natural attractions, hiking or walking in nature, and viewing wildlife. 24

As shown in Figure 2, analysis of various factors over a 20-year period shows that the number of Americans travelling to Canada relates more to the Canadian/U.S. dollar exchange rate than to changes in the U.S.  GDP .

Figure 2 – Index Comparing the Number of U.S. Visits to Canada, the Canadian/U.S. Dollar Exchange Rate and the Change in the U.S. Gross Domestic Product (GDP), 2000–2019 (2000 = 100)

This figure is a line graph showing three lines corresponding to the change between 2000 and 2019 in the number of U.S. visitors to Canada, the Canadian dollar to U.S. dollar exchange rate and the U.S. gross domestic product. The lines for the number of U.S. visitors to Canada and the Canadian dollar to U.S. dollar exchange rate follow one another closely, while the line for the change in U.S. gross domestic product does not and has its own slope.

Source: Figure prepared by the Library of Parliament using data obtained from Statistics Canada, “ Chart 1: Tourists to Canada from abroad, annual ,” The Daily , 20 February 2020; Federal Reserve Bank of St. Louis, “ Canadian Dollars to U.S. Dollar Spot Exchange Rate ,” FRED, Database, accessed 20 August 2021; and World Bank, “ GDP (constant 2010 US$) – United States ,” Database, accessed 20 August 2021.

According to the World Economic Forum’s Travel & Tourism Competitiveness Report 2019 , Canada ranked ninth out of 140 countries studied, down from eighth place in 2013. 25 Canada was ranked first in several sub-categories, such as safety and security, environmental sustainability and air transport infrastructure.

In contrast, Canada was found to be deficient in several areas, such as price competitiveness and international openness (e.g., visa requirements, air service agreements).

A 2018 report further indicated the following challenges facing the Canadian tourism sector:

  • CONCENTRATED DEMAND – Toronto, Vancouver and Montréal (Canada’s three largest cities) account for 75% of all visitors, and most of this activity takes place during the summer months. Plus, 70% of visitors to Canada come from the U.S., making the sector very vulnerable to the vagaries of the American economy.
  • ACCESS – Coming to (and travelling within) Canada can be expensive, difficult and time-consuming; this is true for travel both inter-regionally (e.g., visiting a national park from a large city) and within urban centres.
  • LABOUR SHORTAGES – Similar to many sectors that service the public, the tourism industry has been facing labour shortages for some time. In fact, this sector “could face a shortage of 120,000 people by the mid-2020s, and up to 230,000 people by 2030.”
  • LACK OF INVESTMENT/PROMOTION – As hotels face up to 95% occupancy during the summer months, there are insufficient room-nights for additional large-attendance events such as conventions, conferences and festivals. Also, compared to peer countries, Canada spends less on marketing and promotion per international tourist arrival (in some cases up to 20% less). One of the contributing factors is that most tourism businesses are small enterprises that face difficulties in securing capital.
  • GOVERNANCE – Given that the sector is extremely diverse and made up of many destinations in different regions, successful efforts for one region or operator will not necessarily carry over to other parts of the country or service providers. Also, as tourism policies and programs are spread across numerous organizations within every level of government, making a well-coordinated and integrated Canadian approach is difficult. 26

These assessments suggest that even though Canada is doing well in certain areas, other jurisdictions may be greatly improving their ability to attract international tourism. Changing trends in consumer preferences may also play a role in determining which destinations may be more popular than others at any particular time.

4 The Role of the Federal Government

Destination Canada is a federal Crown corporation responsible for national tourism marketing and is governed by the Canadian Tourism Commission Act . It targets the following markets “where Canada’s tourism brand leads and yields the highest return on investment”: Australia, Canada, China, France, Germany, Japan, Mexico, the U.K. and the U.S. 27

In 2019, the federal government announced its new tourism strategy entitled Creating Middle Class Jobs: A Federal Tourism Growth Strategy . It is based on the following three pillars:

  • BUILDING TOURISM IN CANADA’S COMMUNITIES – expand from the concentration of international visitors to Canada’s three largest cities over a few (mostly summer) months by helping communities “exploit and develop the characteristics that make them special. In so doing, they will be better able to convince tourists to get off the beaten path, explore the lesser-known parts of the country, and to visit during the off-peak seasons.”
  • ATTRACTING INVESTMENT TO THE VISITOR ECONOMY – to combat the lack of investment in Canada’s tourism sector, the strategy aims to improve coordination among jurisdictions and help attract private investment by establishing “Tourism Investment Groups in every region of Canada to enable the development of impactful tourism projects, including large-scale destination projects.”
  • RENEWING THE FOCUS ON PUBLIC–PRIVATE COLLABORATION – with the establishment of the Economic Strategy Table for Tourism, the federal government aims to stimulate and sustain growth in Canada’s tourism sector by working collaboratively with industry to ensure that tourism is on the front lines of economic policy making. This could include addressing “the high cost of travelling to and within Canada, labour shortages and the lack of investment. It could also look at competitiveness, sustainability, the sharing economy and digital platforms.” 28

Part of the focus on improving tourism has been improving accessibility. To that end, in 2018, the Government of Canada introduced Bill C-81, the Accessible Canada Act , which “aims to achieve a barrier-free Canada through the proactive identification, removal, and prevention of barriers to accessibility in all areas under federal jurisdiction, including transportation services such as air and rail.” 29 The bill received Royal Assent in 2019.

4.3 Federal Funding Initiatives

In 2008–2009, the federal government invested over $500 million in the tourism industry to develop facilities and events, and to promote tourism. This is in addition to investments in other areas that affect tourism, such as improvements for Parks Canada and border services. 30 In 2013, funding of $42 million was allocated to improve visa services, 31 an area where Canada has been found to be deficient.

Since 2016, the regional development agencies have allocated over $196 million to tourism businesses, and the Business Development Bank of Canada has provided more than $1.4 billion in financing. Export Development Canada assists Canadian tourism businesses that aim to expand into global markets. 32 Budget 2017 provided Destination Canada with permanent funding of $95.5 million per year for tourism-related work, up from $58 million. 33

Budget 2019 announced that starting in 2019–2020, $58.5 million over two years would go towards the creation of a Canadian Experiences Fund. The Fund supports “Canadian businesses and organizations seeking to create, improve or expand tourism-related infrastructure—such as accommodations or local attractions—or new tourism products or experiences.” These investments would focus on tourism in rural and remote communities, Indigenous tourism, winter tourism, inclusiveness (especially for the LGBTQ2 communities) and farm-to-table/culinary tourism. 34

Additionally, Budget 2019 included $5 million to Destination Canada for a “tourism marketing campaign that will help Canadians to discover lesser-known areas, hidden national gems and new experiences across the country.” 35

Budget 2019 also included the establishment of the Economic Strategy Table dedicated to tourism, which will bring together “government and industry leaders to identify economic opportunities and help guide the Government in its efforts to provide relevant and effective programs for Canada’s innovators.” 36

Announced in Budget 2021, the Tourism Relief Fund is a $500 million national program that is part of a $1 billion package to support the Canadian tourism sector. 37 Its goal is to position Canada as a destination of choice when domestic and international travel is once again deemed safe (i.e., post-pandemic) by:

  • empowering tourism businesses to create new or enhance existing tourism experiences and products to attract more local and domestic visitors; and
  • helping the sector reposition itself to welcome international visitors by providing the best Canadian tourism experiences to the world. 38

Initiatives under this fund will help tourism businesses and organizations adapt their operations to meet public health requirements; improve their products and services; and position themselves for post-pandemic economic recovery. 39

Part of this funding includes Destination Canada’s $2-million investment along with $950,000 of in-kind support to the Indigenous Tourism Association of Canada to “support the recovery of Indigenous tourism businesses.” 40

Several federal government institutions also play key roles in shaping the outcome of Canada’s tourism economy. For example, the federal government is responsible for the following:

  • establishing ticket taxes and travel tariffs;
  • providing customs and border services; and
  • addressing matters related to national security.

The National Capital Commission and Parks Canada also help ensure that iconic Canadian places are protected and preserved for current and future visitors to enjoy. As well, provincial and territorial governments help develop and promote tourism in Canada. 

The Canadian tourism industry was greatly affected by the global COVID-19 pandemic. However, if international borders continue to reopen and if the industry continues its steady overall growth of the recent years prior to the pandemic, tourism will again contribute to Canada’s economic well-being. And although the U.S. continues to be Canada’s biggest tourism trading partner, stakeholders might continue their efforts of focusing on more growth-oriented, lucrative emerging markets to better diversify tourism interests and help Canada fulfil its tourism potential.

  • World Travel & Tourism Council, Economic Impact Reports . [ Return to text ]
  • Ibid. [ Return to text ]
  • Ibid., p. 7. [ Return to text ]
  • Destination Canada, China . [ Return to text ]
  • Statistics Canada, “ Canadians made fewer trips within Canada and around the world in 2019 ,” The Daily , 9 December 2020. [ Return to text ]
  • Ibid., p. 14. [ Return to text ]
  • Ibid., p. 15. [ Return to text ]
  • Destination Canada, United States . [ Return to text ]
  • Destination Canada, Who we are . See also the Canadian Tourism Commission Act , S.C. 2000, c. 28. [ Return to text ]
  • Innovation, Science and Economic Development Canada, “ Creating Middle Class Jobs: A Federal Tourism Growth Strategy ,” Creating Middle Class Jobs: A Federal Tourism Growth Strategy . [ Return to text ]
  • Ibid.; and Accessible Canada Act , S.C. 2019, C. 10. [ Return to text ]
  • Government of Canada, “ Chapter 3.1: Connecting Canadians With Available Jobs –Temporary Resident Program ,” Jobs, Growth and Long-Term Prosperity: Economic Action Plan 2013 , Budget 2013. [ Return to text ]
  • Government of Canada, “ Chapter 2: Building a Better Canada – Launching a Federal Strategy on Jobs and Tourism ,” Investing in the Middle Class , Budget 2019. The Government of Canada’s regional development agencies are the Atlantic Canada Opportunities Agency (ACOA); Canada Economic Development for Quebec Regions (CED); Canadian Northern Economic Development Agency (CanNor); Federal Economic Development Agency for Southern Ontario (FedDev Ontario); Federal Economic Development Agency for Northern Ontario (FedNor); Prairies Economic Development Canada (PrairiesCan); and Pacific Economic Development Canada (PacifiCan). [ Return to text ]
  • Government of Canada, “ Chapter 2: Building a Better Canada – Launching a Federal Strategy on Jobs and Tourism ,” Investing in the Middle Class , Budget 2019. “LGBTQ2” refers to lesbian, gay, trans, queer and Two-Spirit. [ Return to text ]
  • Government of Canada, Tourism Relief Fund . [ Return to text ]
  • Destination Canada, Destination Canada providing $2 million in funding to Indigenous Tourism Association of Canada ( ITAC ) . [ Return to text ]

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Board Profile - Canadian Tourism Commission

Canadian tourism commission.

The Canadian Tourism Commission is Canada’s national tourism organization. A federal Crown corporation, the CTC leads the Canadian tourism industry in marketing Canada as a premier four-season tourism destination. The Commission supports the Canadian tourism sector in generating tourism export revenues to benefit the economy. It reports to Parliament through the Minister of Industry.

Through collaboration and partnerships with the private sector, the government of Canada, and the provinces and territories, the CTC works with the tourism sector to maintain its competitiveness and to position Canada as a destination where travellers can create extra-ordinary personal experiences.

The CTC is founded on the principle of partnership between the public and private sectors. Through contributions from partners that match its own funding, the CTC is able to achieve the maximum return on investment for its tourism marketing initiatives.

Grow tourism export revenues for Canada.

Inspire the world to explore Canada.

Harness Canada’s collective voice to grow export revenues.

  • Sustain a vibrant and profitable Canadian tourism industry;
  • Market Canada as a desirable tourist destination;
  • Support a cooperative relationship between the private sector and the governments of Canada, the provinces and the territories with respect to Canadian tourism;
  • Provide information about Canadian tourism to the private sector and to the governments of Canada, the provinces and the territories.

Strategic objectives:

  • Convert high-yield customers;
  • Focus on markets of highest return on investment;
  • Lead industry in brand relevancy and consistency;
  • Respond to changing market dynamics.

Strategic priorities:

  • Ensure customer relevancy;
  • Increase engagement with small and medium-sized enterprise (SME) community;
  • Differentiate Canada;
  • Leverage exposure of the Vancouver 2010 Olympic and Paralympic Winter Games for Canada;
  • Foster organizational excellence;
  • Strengthen engagement with the shareholder.

Challenges, Issues and Initiatives

Opportunities:.

  • Growing demand;
  • Growing interest in experiential travel;
  • Growing global middle class;
  • Canada’s Games in 2010;
  • New market opportunities.

Challenges:

  • New competition from emerging markets;
  • Exchanges rates;
  • Competitive funding levels;
  • Increased fuel costs;
  • Air access;
  • Labour shortages.

Roles and Responsibilities

The Board has established the following as its key roles and responsibilities:

  • provides strategic leadership and stewardship;
  • provides ethical leadership and ensures integrity;
  • safeguards the corporation’s resources;
  • delegates authority limits and decision-making levels;
  • monitors corporate performance;
  • reports to the shareholder on the Board’s stewardship;
  • maintains effective communications;
  • oversees and monitors the CEO : performance measuring, evaluation and assessment;
  • ensures an objective and professional relationship with external auditors;
  • assesses the integrity of information and controls;
  • establishes the corporation’s strategic planning process;
  • develops vision and direction with the CEO and involves management in the process;
  • identifies corporate objectives and aligns them with the corporation’s purpose;
  • approves the plan or direction, often with the CEO and shareholder;
  • ensures effective strategic risk management;
  • ensures an effective and transparent process of Board renewal;
  • determines the skill sets of directors;
  • ensures effective orientation for new Board members and ongoing development for directors;
  • oversees succession planning of senior management;
  • approves and reviews major financial decisions;
  • approves developed position descriptions for the Board, CEO , chair, committees and committee chairs;
  • evaluates chair, Board and committee performance;
  • consults with the CEO and senior management on the development of corporate performance measures;
  • measures corporate performance and evaluates results;
  • develops policy with the CEO and senior management;
  • initiates periodic mandate reviews;
  • conducts its own affairs, including meeting regularly.

Core Attributes, Competencies and Experience

Taking into consideration the stated Commission’s objects, vision, mission and the challenges facing the industry, a new representation strategy should include the following:

  • Tourism operators with considerable stature and influence in the industry;
  • Global awareness of tourism marketing issues;
  • Representation from key support functions for the industry (transportation, accommodation, recreation and entertainment, travel agency services, conventions, food and beverage services, retail, finance and cultural products);
  • Strategic marketing skills;
  • Specific skills sets for specific purposes e.g., finance, strong governance acumen, accounting for Audit Committee;
  • Experience in dealing with political and governmental organizations;
  • Individuals who might become succession candidates for the next Chair of the Board.

Directors must also have the following fundamental characteristics to enable them and the Board to function appropriately:

Strategic Thinking

  • Visionary and capable of addressing alternative futures;
  • Ability to grasp the big picture and go beyond single-event decisions;
  • Ability to consider the interests of the tourism industry as a whole.

Informed Judgement

  • Ability to provide wise, thoughtful counsel;
  • Ability to analyze, ask relevant questions at the strategic level;
  • Ability to consider the different stakeholders’ perspectives, understand situations and problems by addressing underlying issues.

Integrity and Accountability

  • Demonstrate high ethical standards and integrity;
  • Be willing to act on and remain accountable for board decisions, meeting the accountabilities outlined in the law, by-laws and rules of the board;
  • See oneself as serving the interests of Canadians.

Decision Making

  • Comfortable with the responsible use of authority in a Board environment;
  • Experienced in policy-focused decision environments and delegation of operational responsibilities;
  • Demonstrated sound business judgement;
  • Ability to assess and challenge management recommendations.

Analytical Understanding

  • Capability of interpreting numerical information;
  • Ability to read and assess financial statements;
  • Skills in performing problem analysis.

Professional Experience

  • Leaders in their industry or community;
  • Understanding of strategic marketing;
  • Understanding of tourism with a global perspective.

Financial Literacy

The ability to read and assess financial statements.

Public Policy

Experience in or knowledge of public policy.

Personal Attributes

  • Demonstrated high ethical standards and integrity;
  • Capable of speaking out and challenging;
  • Desire to contribute to the Commission’s objects in a meaningful way;
  • Ability to work as part of a group -- persuasive, assertive and flexible;
  • Strong oral communication and listening skills;
  • Dynamic and energetic.

Requirements/Criteria for Private Sector Directors

  • Candidates must head / manage (for example CEO or COO ) or own a tourism industry private sector business;
  • The Governance and Nominating Committee has the discretion to consider candidates with the expertise required to satisfy the Board’s needs. Those persons should hold a senior executive position within a major national business or must have the expertise needed by the Board;
  • Candidates should be a recognized decision-maker in the industry, able to rise above their personal business interests to speak on behalf of the region or private sector sub-sector in a forum of senior private sector executives and provincial / territorial government deputy ministers responsible for tourism.

In addition, taking into the overall Board composition, other factors are considered:

  • Type of business in which the candidate has direct ownership or working experience, e.g., accommodation, event, attraction, transportation, distribution channel (travel agency, tour operator);
  • Scale of business in which the candidate has direct ownership or working experience, i.e., small, medium sized or large business;
  • The location of the business in which the candidate has direct ownership/working experience, e.g., rural- or urban-based business;
  • Other tourism industry involvement, e.g., member of a tourism industry association Board, key participant in development and/or promotion of the animation of the industry such as a festival or event;
  • Consideration of provincial / territorial representation of the regional seats, taking into account which province / territory currently holds the public sector regional seat (rotation factor);
  • Willingness to commit time and effort to the governance of the Commission;
  • Acceptance of the code of ethics guidelines contained in By-law No 2;
  • Willingness and ability, while at Board meetings or acting as a CTC Board member, to set aside personal or special interests to organizations in favour of the Commission.

Representation

The Canadian Tourism Commission Act (October 2000) establishes various criteria for the selection and appointment of directors to the Board of the Commission.

Board Size and Composition

  • Board consists of not more than 26 directors including the Chairperson and the President;
  • Up to 16 private sector directors (regional and national representation – see below) appointed by the Minister, with the approval of the Governor in Council, with advice from the Commission’s Governance and Nominating Committee;
  • Up to 7 public sector regional directors (territorial and provincial representation – see below) appointed by the Minister, with the approval of the Governor in Council, among persons designated by the Provincial or Territorial Ministers responsible for tourism. Those ministers may designate deputy ministers, persons who are equivalent to deputy ministers or persons who are heads of provincial or territorial agencies responsible for tourism;
  • The Deputy Minister of Industry is an ex officio director;
  • The President and the Chairperson are appointed by the Governor in Council.

Private Sector - Regional

  • A total of up to 7 directors in this category
  • Must be a tourism operator
  • A tourism operator is defined as an owner or manager of a private sector tourism business

Private Sector - National

  • A total of up to 9 directors in this category
  • Must be a tourism operator or a person with the expertise required to satisfy the Board’s needs

Working Conditions

The CTC Board of Directors meets in person three times per year in various locations across Canada. In addition, there are two conference calls annually. Board meetings are usually held over a two day period.

  • All Board members are encouraged to join a Board committee (Audit, Governance and Nominating, Human Resources, Executive;
  • We estimate 15-25 days annual time commitment for Board and Committee work;
  • Board members’ travel expenses are reimbursed by the CTC .
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Annual Report

Each year, the Tourism HR Canada Annual Report offers a comprehensive look at our key accomplishments, partnerships, and initiatives.

This year’s report covers the multitude of activities Tourism HR Canada undertook to support the tourism workforce as COVID’s impact continued to devastate the tourism sector across the country.

Tourism HR Canada provided frequent, timely insights into the labour market, communicated updates to help employers and workers navigate support programs, and developed programs and tools to position the sector for a strong recovery.

The organization collaborated with industry associations, governments, and others to ensure we all succeed in our shared goal of restoring a resilient and prosperous Canadian tourism sector.

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<strong>Canadian</strong> <strong>Tourism</strong> <strong>Commission</strong> <strong>2010</strong> <strong>Annual</strong> <strong>Report</strong><br />

Seizing Opportunities<br />

for New Growth<br />

<strong>2010</strong> <strong>Annual</strong> <strong>Report</strong>

Contents<br />

Message from the Chair 2<br />

Message from the President & CEO 4<br />

<strong>Canada</strong>’s tourism industry 6<br />

Partnerships 11<br />

Sustaining the industry 12<br />

Leveraging the <strong>2010</strong> Winter Games for <strong>Canada</strong> 15<br />

Marketing <strong>Canada</strong> to the world – A strong return on investment 19<br />

Awards 26<br />

Corporate governance 28<br />

Board of Directors 30<br />

Senior Management Committee 33<br />

Performance measurement 34<br />

Management discussion & analysis 37<br />

Financial statements 50<br />

Notes to audited financial statements 55<br />

Glossary of terms & acronyms 76<br />

The <strong>2010</strong> <strong>Annual</strong> <strong>Report</strong> serves as the principal mechanism for the <strong>Canadian</strong><br />

<strong>Tourism</strong> <strong>Commission</strong> (CTC) to report to the Parliament of <strong>Canada</strong> and demonstrate<br />

the results achieved with public resources. With the theme of “seizing opportunities<br />

for new growth,” the <strong>Annual</strong> <strong>Report</strong> showcases key activities and initiatives undertaken<br />

throughout <strong>2010</strong>.<br />

Cover photo:<br />

Miscou Island, New Brunswick<br />

New Brunswick Department of <strong>Tourism</strong> and Parks

Corporate profile<br />

The CTC is <strong>Canada</strong>’s national tourism marketing organization. A federal Crown<br />

corporation wholly owned by the Government of <strong>Canada</strong>, we lead the <strong>Canadian</strong> tourism<br />

industry in marketing <strong>Canada</strong> as an internationally competitive, premier four-season<br />

tourism destination where travellers have access to extra-ordinary experiences. We<br />

provide a consistent voice for <strong>Canada</strong> in the international tourism marketplace.<br />

<strong>Report</strong>ing to Parliament through the Minister of Industry, our legislative requirements<br />

are outlined in the <strong>Canadian</strong> <strong>Tourism</strong> <strong>Commission</strong> Act. Our purpose is to sustain a<br />

vibrant and profitable tourism industry by supporting a cooperative relationship<br />

between the private sector and the governments of <strong>Canada</strong>, the provinces and the<br />

territories. The immediate beneficiary of our activity is <strong>Canada</strong>’s tourism industry,<br />

which includes approximately 177,911 tourism-related businesses and contributes<br />

some 610,600 jobs to the <strong>Canadian</strong> economy.<br />

The ultimate beneficiary of the CTC’s activities is the <strong>Canadian</strong> taxpayer, who enjoys<br />

tourism’s contribution to the quality of life in <strong>Canada</strong> through public and private<br />

investments in parks, transportation infrastructure, attractions, events and event<br />

facilities. In addition to stimulating export revenue growth and job creation in <strong>Canada</strong>,<br />

we also stimulate high-value knowledge-based businesses and jobs for the <strong>Canadian</strong><br />

economy (e.g. enabling technology, e-marketing, creative production, research, and<br />

the digital economy). The tourism marketing industry is a major customer of <strong>Canada</strong>’s<br />

creative and digital economies.<br />

Our current approach targets international travellers in the Americas (United States,<br />

Mexico and Brazil), Europe (United Kingdom, Germany and France), Asia (China, India,<br />

South Korea and Japan) and Australia. However, our regional hub structure allows us<br />

to be nimble and opportunistic, to adjust our marketing programs to reflect changing<br />

market conditions, and to capitalize on new marketing opportunities as they arise.<br />

Message from the Chair<br />

By any measure, <strong>2010</strong> was an incredible year for our country and our organization. The CTC’s strategy<br />

to leverage the <strong>2010</strong> Winter Games for <strong>Canada</strong> played out beyond expectations. We will continue to<br />

leverage this opportunity for <strong>Canada</strong> over the next two years, but early outcomes show that the vision<br />

and the plan are yielding strong results in the fiercely competitive marketplace of global tourism.<br />

To further enhance <strong>Canada</strong>’s competitiveness as a tourism destination, one of the Board’s key priorities<br />

for <strong>2010</strong> was to look at ways to maximize resources dedicated to demand generation through our<br />

marketing programs. To this end, the Board approved a new strategic direction for the CTC: one that<br />

would shift our marketing focus to international markets where we have both a leadership role and<br />

the ability to drive the best possible return on investment. Provincial and regional marketing organizations<br />

make significant investments under their own brands in the US leisure market, so we ceased some<br />

marketing activities there at the end of <strong>2010</strong>, remaining invested only in social media and public relations.<br />

In addition, the Board approved the streamlining of operations while reducing our cost structure with<br />

the goal of re-focusing the organization’s business model to ensure a leaner structure for the future.<br />

This will allow us to deliver on our mandate in a much more efficient way. While this was no small<br />

undertaking, industry stakeholders recognized the benefit of increased competitiveness and supported<br />

our initiative. In the summer of <strong>2010</strong>, the CTC’s management began the transition by: establishing a<br />

regional hub office structure to reduce our international footprint; piloting a program to co-locate with<br />

tourism partners; beginning a process to solicit General Sales Agents (GSAs) to implement a portion<br />

of the CTC’s work in several markets; initiating the process to drop the number of international property<br />

leases from 13 to five; and reducing the CTC’s team by 30% to keep with a leaner model. These<br />

changes were not easy; however, the outcome will be an additional $16 million redeployed into the<br />

marketplace by 2012, enhancing our ability to compete for the world’s travellers.<br />

A second priority for the Board was to respond to the shareholder’s requirement for Governor-in-<br />

Council reductions across government by taking action on the Governance Review report supported<br />

unanimously by the Directors in 2009. I am pleased to report that the size of the Board has been<br />

reduced from 26 Directors to a maximum of 12. I want to thank personally all Board members, including<br />

those who have left us and those who remain; each has supported our new governance model and<br />

has put the needs of the CTC first.<br />

In 2011 we will revitalize our Board Advisory Committees to ensure they remain relevant and aligned<br />

with our new business model. In addition, we will diversify our marketing investments to find new<br />

growth opportunities to help position <strong>Canada</strong>’s tourism industry for the future. In markets where<br />

we remain, we will expect the CTC team to be even more innovative to gain market share from the<br />

world’s competition.<br />

It has been a year of significant accomplishments for the organization. I am pleased to report that<br />

the changes set in motion in <strong>2010</strong> will help <strong>Canada</strong>’s national tourism marketing organization better<br />

support our tourism industry into the next decade both efficiently and competitively.<br />

Steve Allan<br />

Chair<br />

March 24, 2011<br />

Tutshi River, Yukon<br />

Government of Yukon<br />

<strong>Canada</strong> is a place for<br />

visitors to indulge their<br />

curiosities and explore<br />

our geography, culture<br />

and people. Here, they<br />

have the freedom to<br />

create extra-ordinary<br />

experiences all their own.<br />

Virginia Falls, Nahanni National Park, Northwest Territories<br />

NWTT/Terry Parker<br />

Message from the President & CEO<br />

I am very pleased to provide this year’s annual report, which details how the CTC’s tourism marketing<br />

strategies continue to pay dividends for <strong>Canadian</strong>s. <strong>Canada</strong>’s international tourism brand “<strong>Canada</strong>.<br />

Keep Exploring”, developed and managed by the CTC, is evolving and yielding results. This year<br />

<strong>Canada</strong> was recognized by FutureBrand as having the number one country brand in the world. This<br />

result is a key measure of success for us at the CTC as it points to the strength of our tourism brand<br />

and its global influence.<br />

We are proud to report that the following results are directly attributable to our <strong>2010</strong> direct-to-consumer<br />

marketing efforts under this winning brand:<br />

• $1.9 billion in export tourism revenue for <strong>Canada</strong>’s economy;<br />

• $244.2 million in government revenues; and<br />

• 16,569 jobs in <strong>Canada</strong> created or protected.<br />

Independent evaluation for <strong>2010</strong> shows a return on investment of 82:1 on marketing campaigns<br />

from core investment, and 44:1 from campaigns resourced from Budget 2009 as part of <strong>Canada</strong>’s<br />

Economic Action Plan. It is clear that as <strong>Canada</strong>’s national tourism marketer, investments in CTC<br />

produce dividends.<br />

As the world continued its economic recovery in <strong>2010</strong>, we saw increased arrivals from all of our key<br />

international markets, with the exception of Mexico, which remains a market in recovery. Perhaps<br />

most encouraging was the double-digit growth we saw from our emerging markets or markets in<br />

transition of Brazil, India, South Korea, Japan and China. In addition, mid-way through <strong>2010</strong>, we<br />

applauded the headline: <strong>Canada</strong> Secures Approved Destination Status from China. By the end of<br />

<strong>2010</strong>, Chinese arrivals were already up 21.2% over 2009, and we expect even greater increases as<br />

we roll out <strong>Canada</strong>’s first ever direct-to-consumer marketing campaign to millions of Chinese<br />

travellers keen to explore <strong>Canada</strong> and see the sights first-hand.<br />

Looking forward, in 2011 we will continue to enrich <strong>Canada</strong>’s international tourism brand by<br />

identifying more unique travel experiences that can be leveraged in our marketing, and we will place<br />

a renewed focus on our travel trade relationships in order to close more sales. Under the CTC’s new<br />

business model, we will focus on taking our tourism brand into markets where we can lead, and<br />

where we see opportunities for new growth. Our focus on the high-spending traveller continues and<br />

this report demonstrates the wisdom of keeping with that strategy.<br />

We will continue to innovate and experiment, to access new technologies and social media, and to<br />

leverage our public relations abilities to market our extraordinary <strong>Canadian</strong> tourism experiences to<br />

the world.<br />

Keep exploring!<br />

Michele McKenzie<br />

President & CEO<br />

Toronto, Ontario<br />

<strong>Canadian</strong> cities fill visitors<br />

with a sense of exploration<br />

and discovery. And while<br />

they are cosmopolitan<br />

and sophisticated, our<br />

cities are on the doorstep<br />

of our spectacular natural<br />

wonders.<br />

Vancouver Convention Centre, British Columbia<br />

<strong>Canada</strong>’s tourism industry<br />

Industry overview<br />

<strong>Tourism</strong> has become one of the world’s fastest growing industries and is recovering<br />

following the economic turbulence of the last few years. In fact, according to the United<br />

Nations World <strong>Tourism</strong> Organization (UNWTO), international tourist arrivals reached an<br />

estimated 935 million in <strong>2010</strong>, a gain of 6.7% from 877 million in 2009.<br />

Overall, stimulated by improved confidence and global economic conditions, as well as<br />

increased awareness from the Vancouver <strong>2010</strong> Olympic and Paralympic Winter Games,<br />

international tourist arrivals to <strong>Canada</strong> increased in <strong>2010</strong>. In fact, other than Mexico, all of<br />

the CTC’s key international markets registered gains in <strong>2010</strong>.<br />

The <strong>Canadian</strong> tourism sector is widely varied. It ranges from small- and medium-sized<br />

enterprises (SMEs) operating in a single location to large, far-reaching corporations. It also<br />

includes provincial marketing organizations (PMOs), destination marketing organizations<br />

(DMOs), as well as tourism industry and trade associations.<br />

Based on CTC preliminary estimates for <strong>2010</strong>, <strong>Canada</strong>’s tourism industry generated<br />

$74.1 billion in revenue to the <strong>Canadian</strong> economy, contributed $29.5 billion to <strong>Canada</strong>’s<br />

Gross Domestic Product (GDP), produced $20.4 billion in government revenue, and<br />

supported 610,600 jobs in <strong>Canada</strong> from tourism spending.<br />

<strong>Canadian</strong> tourism industry economic activity<br />

Economic activity<br />

Final estimates<br />

Preliminary estimates<br />

2008 08/07% 2009 09/08% <strong>2010</strong> 10/09(%)<br />

Total tourism revenue $74.7 billion +5.5% $69.5 billion -4.5% $74.1 billion +6.5%<br />

<strong>Tourism</strong>’s contribution to<br />

<strong>Canadian</strong> GDP<br />

$30.3 billion +5.8% $27.7 billion -4.2% $29.5 billion +6.5%<br />

Government revenue<br />

generated by tourism $21.9 billion +5.7% $19.2 billion -4.8% $20.4 billion +6.6%<br />

Total jobs in <strong>Canada</strong> as a result<br />

of tourism spending 662,900 +1.4% 616,800 -7.0% 610,600 -1.0%<br />

Revenue from domestic tourism increased by 6.7% in <strong>2010</strong>, contributing $59.1 billion<br />

or 80% toward the overall tourism revenue of $74.1 billion. Likewise, revenue from all<br />

international tourism increased by 5.2%, contributing $14.8 billion or 20% toward the<br />

overall tourism revenue. While the <strong>Canadian</strong> economy does benefit from increasing<br />

domestic tourism demand, dependence on the domestic market is a serious concern<br />

with limited growth potential available from our relatively small population base.<br />

In the last 10 years, the contribution from international travellers to <strong>Canada</strong>’s total tourism<br />

revenue has fallen from 35% in 2000 to 20% in <strong>2010</strong>. While tourism is one of the world’s<br />

fastest growing sectors, it is strategically important to <strong>Canada</strong>’s future competitiveness<br />

to generate real growth from international tourism markets resulting in foreign currency<br />

investments into <strong>Canadian</strong> tourism products. To further illustrate this point, in <strong>2010</strong>,<br />

domestic travellers spent an average of $92 per day in <strong>Canada</strong> compared to international<br />

travellers who spent an average of $129 per day in <strong>Canada</strong>. 1<br />

In <strong>2010</strong>, arrivals to <strong>Canada</strong> from the CTC’s 11 international key markets increased by<br />

2.1% over 2009 levels, with substantial gains from the emerging/transition markets of<br />

Japan, Brazil, India, South Korea and China. Our traditional/core markets also exhibited<br />

increased arrivals in <strong>2010</strong> with numbers up from France, Germany, Australia, and—to a<br />

lesser degree—the US and the UK. In fact, the only CTC market with decreased arrivals<br />

in <strong>2010</strong> was Mexico, but this was largely due to visa requirements that came into effect in<br />

July 2009.<br />

<strong>Annual</strong> estimated overnight trips to <strong>Canada</strong> by CTC market (000s)<br />

2008 08/07% 2009 09/08% <strong>2010</strong> 10/09 (%)<br />

US total 12,503 -6.5 11,666 -6.7 11,744 +0.7<br />

UK 837 -6.4 686 -18.1 712 +0.2<br />

France 405 +12.5 388 -4.1 436 +6.8<br />

Germany 315 +5.6 291 -7.6 332 +7.2<br />

Japan 259 -16.6 180 -30.4 236 +19.1<br />

Australia 219 +5.6 188 -14.3 233 +13.9<br />

China 159 +5.3 159 +0.4 195 +21.2<br />

South Korea 173 -7.8 131 -24.0 164 +18.9<br />

India 129 +7.4 126 -2.0 128 +18.2<br />

Mexico 257 +11.7 161 -37.4 121 -28.6<br />

Brazil 70 +10.6 57 -19.2 80 +29.7<br />

Total key markets 15,326 -5.4 14,034 -8.4 14,380 +2.1<br />

Total international markets 16,997 -4.4 15,583 -8.3 16,093 +2.3<br />

Note: <strong>2010</strong> year-over-year percent changes are against 2009 preliminary estimates.<br />

Total receipts from these same markets reached an estimated $9.7 billion in <strong>2010</strong>, a gain<br />

of 2.9% from 2009, while average spend per person per night decreased modestly by<br />

0.2% to $106.70. As the global economy continues to improve, it is expected that travellers’<br />

spending habits will increase.<br />

1<br />

$129 per day for international travellers includes all overseas CTC key markets, US air leisure, and total US MC&IT, but<br />

excludes Visiting Friends and Relatives (VFR) for overseas markets.<br />

Although <strong>Canada</strong>’s performance from a yield perspective remains relatively flat, evidence<br />

based on data produced by the UNWTO shows that <strong>Canada</strong>’s calculated yield from<br />

tourist arrivals and receipts still registered the third largest gain in the 1996-2009 period.<br />

Against its main competitors, <strong>Canada</strong>’s yield over the 13 years increased by 171.8%, for<br />

an annual average gain of 4.3%, or an estimated 6.0% in constant terms. To emphasize<br />

the point, while the volume of travellers to <strong>Canada</strong> decreased 10.7% over 1996-2009,<br />

tourist receipts from travellers increased 59.2% over the same period. The fact that tourist<br />

receipts have increased over 15 times more than tourist arrivals reflects the success of<br />

our strategy to target high-yield consumers.<br />

Average spent/trip ($CDN)<br />

1996 2009 09/96%<br />

Australia $1,554 $5,234 236.8<br />

US $1,099 $1,953 77.7<br />

Germany $850 $1,636 92.5<br />

Thailand $926 $1,284 38.7<br />

UK $622 $1,223 96.6<br />

<strong>Canada</strong> $365 $992 171.8<br />

Turkey $461 $951 106.3<br />

China $315 $891 182.9<br />

France $333 $761 128.5<br />

Competitor performance<br />

<strong>Canada</strong> was not alone in experiencing gains in international tourist arrivals over the<br />

last year. As the following table illustrates, some of <strong>Canada</strong>’s established international<br />

competitors also experienced gains in <strong>2010</strong>. The US experienced only a mild setback<br />

from the UK and saw gains from all other CTC key markets, including sharp increases<br />

from China (+55.2%) and South Korea (+52.2%), which can largely be attributed to<br />

specific policy reforms, namely: the US government dropped the visa requirement for<br />

South Korean travellers in late 2008; and China granted Approved Destination Status<br />

(ADS) to the US in 2009.<br />

Although Australia experienced moderate increases from the US, France, China, India<br />

and Brazil, it saw a small decline from the UK and sharp declines from Japan and South<br />

Korea. The result was an overall decrease in arrivals from these key markets of 5.5%<br />

from 2009.<br />

Likewise, while the UK experienced substantial increases from India and Brazil, as well as<br />

moderate increases from Germany, Australia, China and Mexico, the setbacks from the<br />

US, France and Japan resulted in an overall decrease from these key markets of 3.2%<br />

The global trend of mature destinations losing business to new emerging receptive<br />

destinations seems to be continuing. In response to this trend, we have strategically<br />

shifted our emphasis to focus on growing emerging markets; <strong>Canada</strong> was quick to<br />

recognize this global trend and adjust accordingly.<br />

<strong>2010</strong> estimated overnight trips by CTC market (000s)<br />

CANADA 10/09 (%) US 10/09 (%) AUS 10/09 (%) UK 10/09(%)<br />

US total 11,744 +0.7 – – 470 +4.0 2,326 -8.0<br />

UK 712 +0.2 3,870 -0.5 633 -2.0 – –<br />

France 436 +6.8 1,332 +10.6 97 +8.0 3,607 -5.0<br />

Germany 332 +7.2 1,739 +3.1 161 – 2,978 +8.0<br />

Japan 236 +19.1 3,429 +17.5 405 -24.0 219 -6.0<br />

Australia 233 +13.9 908 +25.7 – – 964 +7.0<br />

China 195 +21.2 995 +55.2 450 +3.0 140 +2.3<br />

South Korea 164 +18.9 1,132 +52.2 217 -20.0 – –<br />

India 128 +18.2 651 +18.4 139 +11.0 308 +34.0<br />

Mexico 121 -28.6 1,644 +8.8 – – 86 +8.0<br />

Brazil 80 +29.7 1,206 +35.1 27 +5.0 174 +15.0<br />

Total key markets 14,380 +2.1 17,417 +14.5 2,272 -5.5 10,802 -3.2<br />

Total international markets 16,093 +2.3 52,941 +10.9 5,920 -1.0 29,419 -1.0<br />

Source: CTC preliminary estimates<br />

Churchill, Manitoba<br />

In <strong>Canada</strong>, a journey is<br />

more than getting from<br />

one place to the next; it<br />

is about exploring, and<br />

making discoveries along<br />

the way. For visitors, the<br />

journey can just be as<br />

rewarding an experience<br />

as the destination.<br />

Orlova Russian Icebreaker, Nunavut<br />

Nunavut <strong>Tourism</strong>/Kike Calvo<br />

Partnerships<br />

Our organization is founded on the principle of partnership between the public sector and<br />

private industry. Through contributions from partners that match our own funding, we are<br />

able to achieve the maximum return on investment for our tourism marketing initiatives.<br />

In <strong>2010</strong>, partnership contributions totalled $138.5 million, resulting in an overall 1.32:1.0<br />

ratio of partner contributions to our total budget allocation of $104.9 million 2 . This result<br />

demonstrates that our programs were relevant to partners.<br />

There are four types of CTC partnership arrangements:<br />

• CTC-led marketing or sales campaigns: Arrangements whereby we directly sell<br />

advertising opportunities to our partners. For example: when partners buy advertising<br />

space in CTC publications, or partners buy space at CTC-led events. During <strong>2010</strong>,<br />

partners invested $16.3 million in these campaigns.<br />

• Partner-led marketing or sales campaigns: Arrangements whereby partners take<br />

the lead in managing campaigns and sell advertising opportunities to us. Our partners’<br />

investments in these types of initiatives totalled $40.7 million in <strong>2010</strong>.<br />

• Parallel partnerships: Arrangements whereby we run parallel advertising with our<br />

partners. These partnerships are based on signed agreements through which we and<br />

our partners align our campaign strategy. Typically, we begin the campaign by exposing<br />

the market to <strong>Canada</strong>-focused messages. After a set period of time, the partner enters<br />

the market with specific destination messaging and leverages the momentum already<br />

established. Partnership contributions to parallel partnership initiatives in <strong>2010</strong> totalled<br />

$39.7 million.<br />

• In-kind partner contributions: In-kind partner contributions are arrangements whereby<br />

partners contribute to our marketing or sales campaigns with goods or services rather<br />

than financial contributions. For example: when partners contribute to CTC-organized<br />

media familiarization (FAM) trips by covering transportation or accommodation costs,<br />

etc., or partners invite us to advertise in publications or at events without cost. In-kind<br />

contributions in <strong>2010</strong> were valued at $41.8 million.<br />

2<br />

This figure is composed of $80.3 million from base budget allocation, $16.5 million from <strong>2010</strong> Winter Games one-time funding,<br />

and $41.7 million from <strong>Canada</strong>’s Economic Action Plan one-time funding.<br />

Sustaining the industry<br />

<strong>Canada</strong>’s tourism brand<br />

Since the launch of <strong>Canada</strong>’s revitalized tourism brand “<strong>Canada</strong>. Keep Exploring” in 2007,<br />

we have worked to bridge the world’s nature-based perceptions of <strong>Canada</strong> and to present<br />

more diverse and real <strong>Canadian</strong> travel experiences in a personal, emotional, relevant and<br />

interactive context. Throughout <strong>2010</strong>, we continued to expand our solid platform to share<br />

brand assets and create real potential to capture the imagination of travellers around the<br />

world. “Keep Exploring” has now become a reflection of <strong>Canada</strong>, expressing its attributes<br />

and strengths through enticing and modern visuals, along with a personality and tone that<br />

mirror the authentic, warm nature of <strong>Canadian</strong>s.<br />

CTC events & tradeshows<br />

Designed to promote business-to-business networking where <strong>Canadian</strong> tourism SMEs<br />

can meet buyers of product and/or pitch themselves to media, the following events and<br />

tradeshows were led by the CTC in <strong>2010</strong>:<br />

• GoMedia <strong>Canada</strong> Marketplace (<strong>Canada</strong>)<br />

• Rendez-vous <strong>Canada</strong> (<strong>Canada</strong>)<br />

• GoMedia Marketplace (Mexico)<br />

• Conozca Canadá (Mexico)<br />

• <strong>Canada</strong> Media Marketplace (US)<br />

• Showcase <strong>Canada</strong> (Japan, China and South Korea)<br />

• <strong>Canada</strong> Corroboree (Australia)<br />

Signature Experiences Collection<br />

In <strong>2010</strong>, the CTC began work to develop an inventory of experiences that will exemplify<br />

<strong>Canada</strong>’s tourism brand and will be showcased through our marketing channels (i.e.<br />

leisure-focused advertising, sales, media and public relations, social media and incentive<br />

travel). Known as the Signature Experiences Collection (SEC), this inventory will build on<br />

the Signature 28 Aboriginal Cultural <strong>Tourism</strong> Experiences (2007 and 2008) and the<br />

<strong>Canadian</strong> Spa Experiences Collection (2008 and 2009) initiatives. The SEC will be a<br />

more holistic effort and will contribute to changing consumers’ traditional perceptions of<br />

<strong>Canada</strong> by adding depth and dimension to <strong>Canada</strong>’s tourism brand. In addition, the<br />

SEC program will provide opportunities for tourism operators with relevant export-ready<br />

experiences to gain greater profile in our source markets, providing a solid platform for<br />

export-driven sales. The program will also inspire developing <strong>Canadian</strong> tourism products<br />

to strive to reach the next level. The SEC initiative, once launched, will also provide<br />

opportunities for us to work with our provincial and territorial partners, as well as other federal<br />

departments and agencies, such as Agriculture and Agri-Food <strong>Canada</strong>, Parks <strong>Canada</strong>,<br />

Indian and Northern Affairs <strong>Canada</strong>, <strong>Canadian</strong> Heritage, Atlantic <strong>Canada</strong> Opportunities<br />

Agency, etc., to ensure that the export-ready experiences that best align with our<br />

research-based marketing are included in the collection. In this way, we are continuing<br />

to work with industry, stakeholders and our federal partners to identify experiences that<br />

support the delivery of <strong>Canada</strong>’s tourism brand, <strong>Canada</strong>. Keep Exploring.<br />

has become a leading<br />

storytelling tourism<br />

brand in the world where<br />

travellers bring home<br />

extra-ordinary stories all<br />

their own.<br />

The world is starting to<br />

see <strong>Canada</strong> as not just<br />

a beautiful place with<br />

incredible landscapes,<br />

but as a place that offers<br />

travellers an opportunity<br />

to create their own stories<br />

and experiences – unique<br />

stories that are a little<br />

unexpected, unusual and<br />

out of the ordinary.<br />

CTC Media Centre website<br />

Our bilingual CTC Media Centre is an interactive source for international media looking<br />

for <strong>Canada</strong> travel information and resources. The website features video footage (b-roll),<br />

photos, CTC news releases, <strong>Canada</strong> facts, media contacts and partners, and links to<br />

CTC research and corporate information. The site also features “story ideas” designed to<br />

inspire media to produce their own stories on travel to <strong>Canada</strong>, and “CTC News” reports<br />

on CTC research, corporate news, projects and initiatives. Users can subscribe to Story<br />

Ideas and CTC News via RSS feeds or e-mail alerts, follow us on Twitter and Facebook<br />

and comment on, bookmark and share our content. In <strong>2010</strong>, we enhanced the Media<br />

Centre by adding blog-style content that is updated frequently. The site currently receives<br />

about 20,000 visits per month.<br />

During the <strong>2010</strong> Winter Games, our mobile version of the Media Centre proved invaluable<br />

for journalists covering the Games. The site won a silver award in the Travel category of the<br />

<strong>2010</strong> W3 Awards, run by the International Academy of Visual Arts. For more information,<br />

visit www.canada.travel/media.<br />

Social Media<br />

With a collection of over 300 short travel documentaries produced in collaboration with<br />

partners in 2009, our focus in <strong>2010</strong> was to actively distribute this content through our<br />

existing social media platforms and marketing campaigns, as well as to online audiences<br />

proactively identified as being interested in <strong>Canadian</strong> travel experiences. This approach<br />

supported our mandate by providing travellers with a rich picture of the experiences<br />

available in <strong>Canada</strong>, thereby inspiring them to visit.<br />

In <strong>2010</strong>, we also enhanced our social media production efforts for our international markets.<br />

We established a presence in English, French, German, Spanish and Portuguese on our<br />

primary social platforms of Facebook, Twitter, YouTube and Flickr. Other notable social<br />

media programs in <strong>2010</strong> included the second phase of our domestic marketing campaign<br />

(Locals Know), Global Ski and numerous activations that surfaced during the <strong>2010</strong> Winter<br />

Games, such as the Shane Koyczan “We Are More” video (www.youtube.com/user/<br />

canadiantourism#p/search/1/BQbQGn_rqTw). Social media has allowed the CTC to<br />

cost-effectively build <strong>Canada</strong>’s tourism brand globally and will continue to be of use for<br />

years to come in engaging influencers and consumers in two-way dialogue.<br />

Visiting Journalist Program<br />

The Visiting Journalist Program (VJP) is an initiative that, through partnership with the<br />

provinces and territories, provides travel support for US media who profile <strong>Canadian</strong> travel<br />

experiences. In <strong>2010</strong>, the program assisted in supporting 240 online, print and broadcast<br />

journalists from around the US to share their experiences in <strong>Canada</strong>. The <strong>2010</strong> VJP<br />

increased its emphasis on social media and offered continuous support to independent<br />

travel writers and freelancers, which generated coverage in numerous traditional travel<br />

publications. Overall, the program increased media and public awareness of the CTC’s<br />

importance to <strong>Canada</strong>’s tourism industry by building relationships with partners and<br />

traditional and social media.<br />

Gros Morne National Park, Newfoundland and Labrador<br />

Newfoundland and Labrador <strong>Tourism</strong>/Barrett and MacKay<br />

Travellers can find<br />

adventure by immersing<br />

themselves in nature’s<br />

wonders, water, and<br />

wildlife, without having<br />

to sacrifice their creature<br />

comforts.<br />

Nova Scotia<br />

Nova Scotia <strong>Tourism</strong>, Culture & Heritage<br />

Leveraging the <strong>2010</strong> Winter Games<br />

for <strong>Canada</strong><br />

In <strong>2010</strong>, we highlighted <strong>Canada</strong> to the world by creating a tourism personality for <strong>Canada</strong><br />

before the Games, focused on media relations and Web communications during the<br />

Games, and worked with partners to harvest the “afterglow” following the Games. The<br />

<strong>2010</strong> Winter Games enjoyed the most extensive coverage ever produced for a Winter<br />

Games, reaching a record audience of 3.8 billion people worldwide. The International<br />

Olympic Committee (IOC) reported that 235 broadcasters and television stations covered<br />

the Games in 220 countries. The <strong>2010</strong> Winter Games were also a defining moment in<br />

Olympic broadcasting history, being the first Winter Games to be fully embraced on new<br />

media platforms, as rights holders and broadcasters increasingly sought to augment<br />

traditional media coverage with online content and live video streaming.<br />

The following are highlights of some of the activities and programs conducted by the CTC<br />

to showcase <strong>Canadian</strong> tourism experiences and increase awareness of <strong>Canada</strong> as a<br />

tourism destination. A full report on the CTC’s activities related to the <strong>2010</strong> Winter Games<br />

and the interim results can be downloaded from smr.newswire.ca/en/canadian-tourismcommission/canada-tourism-reaps-rewards-of-new-awareness.<br />

Connecting with <strong>Canadian</strong>s Program<br />

The Connecting with <strong>Canadian</strong>s program was established to leverage increasing international<br />

media and consumer interest in the <strong>2010</strong> Winter Games and in the athletes. Led by the<br />

CTC with support from provincial and territorial tourism partners, the program offered<br />

authentic <strong>Canadian</strong> tourism experiences to athletes and their families prior to the <strong>2010</strong><br />

Winter Games. International athletes such Lee Kyou Hyuk (photo inset), a popular South<br />

Korean long-track speed skater, and others participated in the program. During their stay<br />

in <strong>Canada</strong>, a TV crew followed their adventures and documented their travel experiences.<br />

The resulting assets included high-definition video, photographs and YouTube documentaries<br />

that were made available to international media in the CTC’s markets and were used<br />

extensively before and during the Games. The program was successful in leveraging<br />

media attention and generating international media coverage. For example, South Korea’s<br />

SBS-TV followed Lee Kyou Hyuk’s trip in <strong>Canada</strong> and aired a full documentary of it in<br />

January <strong>2010</strong>; it also used footage in its sports reporting in the months leading up to<br />

the Games.<br />

Torch Relay International Media Program<br />

In partnership with VANOC, the CTC developed the Torch Relay International Media<br />

Program to maximize international media coverage of the relay, spread Olympic<br />

excitement around the world and promote <strong>Canada</strong>’s extraordinary tourism experiences.<br />

We invited 14 celebrities and Olympic personalities from our key international markets<br />

to participate in the relay as well as to engage in local <strong>Canadian</strong> experiences. Celebrity<br />

torchbearers included Akshay Kumar, a renowned Bollywood actor and Indian celebrity,<br />

NBC announcer and former tennis champion Mary Carillo, and Anna Maria Kaufmann<br />

(photo inset), an opera star in Germany.<br />

Leveraging the <strong>2010</strong> Winter Games for <strong>Canada</strong><br />

Each torchbearer’s journey through the <strong>Canadian</strong> landscape was broadcast and shared<br />

in his or her home countries during the Vancouver <strong>2010</strong> Olympic Torch Relay and again<br />

during the <strong>2010</strong> Winter Games, captivating new international audiences and inspiring<br />

them to book a trip to <strong>Canada</strong>. Before the relay, torchbearers spent time in the areas of<br />

their torch route to enjoy local tourism experiences and to connect with <strong>Canadian</strong>s. As<br />

the international torchbearers were well-known and popular in their home countries, it<br />

was expected that their home media would cover their relay run and their corresponding<br />

tourism experiences. Millions of people around the world became aware of uniquely<br />

<strong>Canadian</strong> cities and landscapes, and learned more about <strong>Canada</strong> and its tourism<br />

possibilities. Overall, the program was successful in generating international media coverage<br />

with over 309 million international media impressions (number of times that individuals in<br />

CTC markets were exposed to print or broadcast stories related to the CTC’s Olympic<br />

Torch Relay International Media Program) worth over $4.5 million in advertising value.<br />

Media Relations Program<br />

The CTC played a significant role in helping to position <strong>Canada</strong> on the global stage<br />

during the Games by providing video shot from coast to coast to coast, as well as images<br />

and stories about <strong>Canada</strong>, to international broadcasters. Reaching audiences through<br />

television programming, particularly live event programming, was a powerful influence on<br />

our target consumers. For example, a clip featuring Manitoba’s polar bears aired to an<br />

estimated 20 million viewers during NBC’s primetime Olympic coverage on February 15th.<br />

<strong>Canada</strong> became the first country to integrate tourism experiences into the media coverage<br />

for global broadcast outlets. mediacentre.canada.travel/content/ctc_news/<strong>2010</strong>-wintergames-media-kudos-I<br />

Leading up to and during the Games, the CTC distributed more than 20 Olympic-related<br />

packages with video, photos and storylines that focused on athletes’ and international<br />

torchbearers’ trips to <strong>Canada</strong>. Our b-roll was even used by NBC, the US rights-holding<br />

broadcaster, to promote the <strong>2010</strong> Winter Games during its Super Bowl coverage. With<br />

100 million viewers, the Super Bowl spot alone was worth an estimated $4.5 million in<br />

prime-time advertising exposure.<br />

Michele McKenzie, CTC President and CEO, is<br />

interviewed by SBS TV from South Korea on the<br />

occasion of the Four Host First Nations flame<br />

blessing ceremony in Vancouver.<br />

From January 1 to March 31, <strong>2010</strong>, the audience reach (number of times that individuals<br />

were exposed to <strong>2010</strong> Winter Games messages that were influenced by the CTC) was<br />

3.8 billion for print publications and 5.1 billion for broadcast, for a total of 8.9 billion<br />

impressions. By June <strong>2010</strong>, global audiences had been exposed to <strong>Canada</strong>’s tourism<br />

messages 12 billion times. By December 31, <strong>2010</strong>, the audience reach of our material<br />

amounted to an advertising value of $1.1 billion. 3<br />

3<br />

This measure is 2.3b on the Enterprise Balanced Scorecard. It reflects the equivalent advertising value of a print-based editorial<br />

story or broadcast media that was influenced by the CTC. Pricing as indicated by the print/broadcast medium through which<br />

the article was published/aired is used or, if unavailable, an industry average price is used. Multipliers are not applied.<br />

MC&IT <strong>2010</strong> Sales Program<br />

As part of our Olympic Games tourism strategy, the CTC promoted <strong>Canada</strong>’s capacity<br />

to host Meetings, Conventions and Incentive Travel (MC&IT) to the world. We leveraged<br />

existing partnerships with meeting planning associations to market <strong>Canada</strong> as a country<br />

with state-of-the-art media, convention, meeting and sports facilities and with experience<br />

executing world-class international events.<br />

During the Games, we hosted presidents, CEOs and executive directors of organizations<br />

that each had the ability to produce up to $10 million in potential business over the next<br />

five years, in order to build high-level relationships with these influential senior executives<br />

and to show <strong>Canada</strong> as a first-rate meeting destination. We reinforced the message that<br />

<strong>Canada</strong> has the infrastructure, quality and unique attributes to host the world.<br />

The programming gave the most senior meeting planning professionals and decisionmakers<br />

a “Behind the Scenes” look at what it takes to host the world’s most high-profile<br />

and complex event. The program was so successful that it became an “Olympic Legacy”<br />

piece for the CTC and the format has been utilized with other significant events such as<br />

the G8/G20 Summit and the Toronto International Film Festival. To date, we have secured<br />

almost $14 million in actual leads for potential programs mainly from US-based organizations<br />

generated as a result of the “Behind the Scenes” program, and $1 million in definite business<br />

for <strong>Canada</strong> from an association that booked Toronto for a program in May 2014.<br />

<strong>Tourism</strong> BC/Albert Normandin<br />

Harvesting the Afterglow<br />

Following the closing ceremonies of the <strong>2010</strong> Winter Games, we began to focus on<br />

harvesting the “afterglow effect” by sustaining the intrigue and interest that had been<br />

generated around the Games and extending it to new travel experiences across <strong>Canada</strong>.<br />

We began working with partners to target consumers and convert their interest in <strong>Canada</strong><br />

into travel intentions with a focus on “closing the sale,” moving the strategy from a brandbuilding<br />

phase to a focus on sales that harness the post-Games afterglow. Conversion<br />

campaigns were activated to drive bookings to <strong>Canada</strong>. The thrust of this effort is to<br />

ensure that the supply of sellable experiences is available to meet the demand generated.<br />

Specific initiatives include:<br />

• Direct-to-consumer advertising campaigns with an emphasis on tactical messages that<br />

include urgent calls-to-action and price points.<br />

• A key account program to ensure that we are working with tour operators in our markets<br />

that are in the best position to sell <strong>Canada</strong> and convert high-yield customers. The<br />

program includes tour operator training, as well as online <strong>Canada</strong> Specialist training for<br />

travel agents.<br />

• Small and medium-sized enterprise (SME) outreach programs to align <strong>Canadian</strong> tourism<br />

experiences with <strong>Canada</strong>’s tourism brand.<br />

Charlottetown, Prince Edward Island<br />

<strong>Tourism</strong> PEI/John Sylvester<br />

Unique locally-sourced<br />

ingredients, natural<br />

freshness, and ethnic<br />

fusion and people all<br />

combine to make<br />

<strong>Canadian</strong> cuisine a<br />

savoury experience.<br />

Quebec City, Quebec<br />

Marketing <strong>Canada</strong> to the world:<br />

a strong return on investment<br />

Overall, the CTC’s<br />

measured direct-toconsumer<br />

campaigns<br />

generated an estimated<br />

$1.9 billion in tourism<br />

revenue for <strong>Canada</strong>’s<br />

economy, $244.2 million<br />

in government revenues,<br />

and 16,569 jobs in<br />

<strong>Canada</strong> were created<br />

or maintained.<br />

As part of our performance management framework, we track and evaluate the success<br />

of our direct-to-consumer marketing efforts through third-party-administered 4 advertising<br />

tracking and conversion studies. In <strong>2010</strong>, we conducted studies of our marketing<br />

campaigns in <strong>Canada</strong>, the US, the UK, Germany, France, Mexico, Australia, South Korea<br />

and Japan. We did not conduct advertising tracking and conversion studies in India,<br />

Brazil or China in <strong>2010</strong> because activities in those markets focused on travel trade,<br />

media and public relations, and meetings, conventions and incentive travel, rather than<br />

direct-to-consumer campaigns. As a result, the principal performance metric for these<br />

three developmental markets is the total number of agents who completed the first level<br />

of <strong>Canada</strong> Specialist Program (CSP) accreditation. 5<br />

We calculate conversion using the measure of “Marketing campaign return on investment<br />

(ROI)”, which values tourist receipts generated by the CTC’s marketing campaigns per<br />

dollar spent to execute the campaign. This form of conversion counts the number of<br />

travellers who were considering travelling to <strong>Canada</strong> but had not yet booked a trip prior<br />

to being exposed to the campaign, and were positively influenced to visit or book a trip to<br />

<strong>Canada</strong> upon seeing the advertisement.<br />

For every dollar invested in the CTC’s <strong>2010</strong> stimulus campaigns, $44 was generated<br />

in tourism revenue. While we executed four stimulus campaigns in 2009, two were<br />

completed in <strong>2010</strong>, explaining the variance in results in a year-to-year comparison.<br />

Overall stimulus campaign performance metrics 2009 Results <strong>2010</strong> Results<br />

Converted travellers 2.8 million 1.9 million<br />

Attributable tourism export revenue $821.9 million $518.5 million<br />

Marketing campaign ROI 87 : 1 44 : 1<br />

Attributable jobs created and/or maintained 7,148 4,601<br />

Attributable federal tax revenue $103.8 million $65.5 million<br />

For every dollar invested in the CTC’s <strong>2010</strong> core campaigns, $82 was generated<br />

in tourism revenue.<br />

Overall core campaign performance metrics 2009 Results <strong>2010</strong> Results<br />

Converted travellers 1.3 million 1.2 million<br />

Attributable tourism export revenue $1.25 billion $1.35 billion<br />

Marketing campaign ROI 101 : 1 82 : 1<br />

Attributable jobs created and/or maintained 11,460 11,968<br />

Attributable federal tax revenue $174.2 million $178.7 million<br />

4<br />

<strong>2010</strong> advertising tracking and conversion studies were administered by Insignia Research.<br />

5<br />

CSP is a comprehensive trade development and education program designed to differentiate <strong>Canada</strong> with a key distribution<br />

network. CSP educates travel agents and tour operators’ sales and reservations teams regarding <strong>Canada</strong> product. Participating<br />

agents are offered a range of information and support to increase their ability to sell <strong>Canada</strong> as a destination.<br />

Marketing <strong>Canada</strong> to the world<br />

<strong>Canada</strong> stimulus campaign (summer)<br />

In <strong>2010</strong>, we executed the second year of the LOCALS KNOW domestic integrated<br />

advertising campaign (print, magazine, TV and online) from May to August with the objective<br />

of persuading outbound travellers to explore <strong>Canada</strong>, and stimulate <strong>Canada</strong>’s economy<br />

by encouraging <strong>Canadian</strong>s to travel within their own country and spend money on<br />

tourism-related experiences/attractions. Results of the <strong>2010</strong> domestic summer campaign<br />

indicate that the campaign converted 14.0% of travellers (or an estimated 1.85 million<br />

<strong>Canadian</strong> travellers). Of those <strong>Canadian</strong>s converted by the campaign, 648,000 diverted<br />

their trips from a foreign destination to a <strong>Canadian</strong> vacation. The campaign generated an<br />

estimated $477.6 million in tourism revenue from converted travellers and contributed to<br />

the maintenance and/or creation of 4,238 jobs for the <strong>Canadian</strong> tourism industry. For<br />

every dollar invested in the <strong>2010</strong> campaign, $59 was generated in tourism revenue.<br />

<strong>Canada</strong> stimulus summer campaign<br />

performance metrics<br />

2009 Results <strong>2010</strong> Results<br />

Conversion rate 9.67% 14.0%<br />

Converted travellers 1.3 million 1.9 million<br />

International intenders to domestic conversion 200,360 648,000<br />

Attributable tourism revenue $372.7 million $477.6 million<br />

Marketing campaign ROI 56 : 1 59 : 1<br />

Attributable jobs created and/or maintained 3,619 4,238<br />

Attributable federal tax revenue $51.1 million $60.0 million<br />

US core and stimulus summer campaigns<br />

The US core summer campaign ran from March to July. As a result of the campaign,<br />

more than 436,000 American travellers were inspired to book a trip to <strong>Canada</strong>. The<br />

campaign generated $187.1 million in tourism export revenue.<br />

US core summer campaign performance metrics 2009 Results <strong>2010</strong> Results<br />

Conversion rate 3.4% 2.5%<br />

Converted travellers 603,000 436,000<br />

Attributable tourism export revenue $320.1 million $187.1 million<br />

Marketing campaign ROI 34 : 1 16 : 1<br />

Attributable jobs created and/or maintained 2,939 1,660<br />

Attributable federal tax revenue $44.7 million $24.8 million<br />

The US stimulus summer campaign ran from March to July. As a result of the campaign,<br />

more than 50,000 American travellers were inspired to book a trip to <strong>Canada</strong>. The campaign<br />

generated $28.7 million in tourism export revenue.<br />

US stimulus summer campaign<br />

performance metrics 2009 Results <strong>2010</strong> Results<br />

Conversion rate 2.2% 1.3%<br />

Converted travellers 82,000 50,000<br />

Attributable tourism export revenue $43.5 million $28.7 million<br />

Marketing campaign ROI 13 : 1 10 : 1<br />

Attributable jobs created and/or maintained 400 254<br />

Attributable federal tax revenue $6.1 million $3.8 million<br />

UK campaign<br />

The UK campaign ran between January 18 and April 4, the period leading up to, during<br />

and after the <strong>2010</strong> Winter Games. As a result of the campaign, more than 290,000 British<br />

travellers were inspired to book a flight to <strong>Canada</strong>—almost twice as many as in 2009 and<br />

three times more than in 2008. The campaign generated an estimated $379.3 million in<br />

tourism export revenue, up from $255.7 million in 2009.<br />

UK campaign performance metrics 2009 Results <strong>2010</strong> Results<br />

Conversion rate 1.65% 3.14%<br />

Converted travellers 181,000 291,000<br />

Attributable tourism export revenue $255.7 million $379.3 million<br />

Marketing campaign ROI 357:1 327:1<br />

Attributable jobs created and/or maintained 2,348 3,365<br />

Attributable federal tax revenue $35.7 million $50.3 million<br />

Germany campaign<br />

The Germany campaign ran between January 18 and April 17, though it was suspended<br />

during the Games. More than 128,000 German travellers booked a trip to <strong>Canada</strong>, up<br />

from about 91,000 in 2009. The campaign generated an estimated $195.8 million in<br />

tourism export revenue, $61.1 million more than in 2009.<br />

Germany campaign performance metrics 2009 Results <strong>2010</strong> Results<br />

Conversion rate 1.36% 1.69%<br />

Converted travellers 91,000 128,000<br />

Attributable tourism export revenue $134.7 million $195.8 million<br />

Marketing campaign ROI 180 : 1 263 : 1<br />

Attributable jobs created and/or maintained 1,237 1,738<br />

Attributable federal tax revenue $18.8 million $25.9 million<br />

France campaign<br />

The France campaign ran between March 1 and April 17, converting an estimated 2.0%<br />

of long-haul French travellers, up from 1.7% in 2009. Over 121,000 travellers booked or<br />

took a trip to <strong>Canada</strong>, generating $160.3 million in tourism export revenues.<br />

France campaign performance metrics 2009 Results <strong>2010</strong> Results<br />

Conversion rate 1.71% 2.02%<br />

Converted travellers 138,000 121,000<br />

Attributable tourism export revenue $184.9 million $160.3 million<br />

Marketing campaign ROI 259 : 1 314 : 1<br />

Attributable jobs created and/or maintained 1,698 1,422<br />

Attributable federal tax revenue $25.8 million $21.2 million<br />

Mexico campaign<br />

Mexico’s spring campaign was less successful at converting Mexican travellers than in<br />

2009. Although media spend in <strong>2010</strong> was 2.6 times greater than in 2009, the proportion<br />

of long-haul travellers highly influenced by CTC advertising decreased from 28% to 17%<br />

(to 74,284 travellers) and generated $106.7 million in tourism export revenues. This<br />

decrease is largely a result of new visa requirements implemented in July 2009.<br />

Mexico campaign performance metrics 2009 Results <strong>2010</strong> Results<br />

Conversion rate 4.60% 2.72%<br />

Converted travellers 104,000 74,000<br />

Attributable tourism export revenue $146.6 million $106.7 million<br />

Marketing campaign ROI 338 : 1 95 : 1<br />

Attributable jobs created and/or maintained 1,347 946<br />

Attributable federal tax revenue $20.5 million $14.1 million<br />

Australia campaign<br />

The Australia campaign ran between January 10 and April 4, the period leading up to,<br />

during and after the <strong>2010</strong> Winter Games. Over 70,000 Australians moved from considering<br />

a trip to <strong>Canada</strong> to making a firm booking in <strong>2010</strong>—almost twice the 2009 number. The<br />

campaign generated an estimated $117.1 million in tourism export revenue, $54.8 million<br />

more than in 2009.<br />

Australia campaign performance metrics 2009 Results <strong>2010</strong> Results<br />

Conversion rate 1.65% 2.19%<br />

Converted travellers 38,000 71,000<br />

Attributable tourism export revenue $62.3 million $117.1 million<br />

Marketing campaign ROI 402 : 1 380 : 1<br />

Attributable jobs created and/or maintained 572 1,039<br />

Attributable federal tax revenue $8.7 million $15.5 million<br />

Japan campaign<br />

The Japan campaign ran from May to July <strong>2010</strong>. The conversion studies results point to a<br />

successful campaign that converted an estimated 1.2% of long-haul Japanese travellers,<br />

slightly down from 1.7% in 2009. Almost 52,000 travellers booked or took a trip to<br />

<strong>Canada</strong> as a result of the campaign, generating $77.7 million in tourism export revenue.<br />

Japan campaign performance metrics 2009 Results <strong>2010</strong> Results<br />

Conversion rate 1.66% 1.18%<br />

Converted travellers 76,000 52,000<br />

Attributable tourism export revenue $104.8 million $77.7 million<br />

Marketing campaign ROI 804 : 1 371 : 1<br />

Attributable jobs created and/or maintained 963 689<br />

Attributable federal tax revenue $14.6 million $10.3 million<br />

South Korea campaign<br />

The South Korea campaign ran from May to August. As a result of the campaign, more<br />

than 55,000 South Korean travellers were inspired to book a flight to <strong>Canada</strong>. The<br />

campaign generated an estimated $91.1 million in tourism export revenue, $52.0 million<br />

South Korea campaign performance metrics 2009 Results <strong>2010</strong> Results<br />

Conversion rate 0.63% 0.74%<br />

Converted travellers 24,000 55,000<br />

Attributable tourism export revenue $39.1 million $91.1 million<br />

Marketing campaign ROI 337 : 1 310 : 1<br />

Attributable jobs created and/or maintained 359 808<br />

Attributable federal tax revenue $5.5 million $12.1 million<br />

China<br />

In June <strong>2010</strong>, China officially granted Approved Destination Status (ADS) to <strong>Canada</strong>. This<br />

meant <strong>Canada</strong> could begin to receive group tours from China and that the CTC could<br />

engage in direct-to-consumer marketing in China, competing on equal footing with other<br />

countries for our share of the world’s largest outbound tourism market.<br />

China is expected to deliver 100 million international travellers by 2020. This growth has<br />

the potential to generate an additional $300 million dollars a year in tourism revenues<br />

for <strong>Canada</strong> by 2015. In 2011, we begin direct-to-consumer advertising in China: we will<br />

launch a brand-awareness campaign to position <strong>Canada</strong> as a destination of choice for<br />

high-spending Chinese travellers, and we will work with tour operators in China and<br />

suppliers in <strong>Canada</strong> to showcase high-quality vacation experiences. In 2012, we<br />

expect to see significant growth from the China market attributable to our advertising<br />

and promotional campaigns, and partner support.<br />

China activities performance metrics<br />

Total number of agents who completed the first level<br />

of <strong>Canada</strong> Specialist Program (CSP) accreditation<br />

<strong>2010</strong> Results<br />

557<br />

India<br />

In <strong>2010</strong>, the CTC continued to actively engage and educate the Indian travel trade and<br />

media in the key cities of Delhi and Mumbai. We also commenced a key account/preferred<br />

agent strategy and offered opportunities for partner participation that supported the<br />

CTC’s leadership role. We were also able to secure a contract with Akshay Kumar, the<br />

leading Bollywood film star, who has been named <strong>Canada</strong>’s <strong>Tourism</strong> Ambassador for<br />

India. The connection to one million Indians living in <strong>Canada</strong> and the number of Indian<br />

films created in <strong>Canada</strong> are important parts of the CTC’s strategy to advance <strong>Canada</strong>’s<br />

tourism brand awareness in India.<br />

India activities performance metrics<br />

of <strong>Canada</strong> Specialist Program (CSP) accreditation 261<br />

Brazil<br />

In <strong>2010</strong>, the CTC continued to develop the Brazil market by engaging tour operators,<br />

travel agents, airlines, social media, media, the <strong>Canadian</strong> Embassy and <strong>Canadian</strong><br />

partners in order to generate interest and demand, as well as to lay the foundations for<br />

conversion. GDP growth in Brazil continues to be strong, and the Brazilian tourism trade’s<br />

enthusiasm for <strong>Canada</strong> has resulted in a major increase in <strong>Canadian</strong> product offerings,<br />

now in place to service the growth in the middle-class. The <strong>2010</strong> Winter Games drew<br />

great attention to <strong>Canada</strong> in Brazil, and there was a significant increase of media coverage,<br />

which only intensified when Brazil was selected as host of the 2016 Summer Games.<br />

Brazil activities performance metrics<br />

of <strong>Canada</strong> Specialist Program (CSP) accreditation 167<br />

Banff, Alberta<br />

<strong>Canada</strong> offers unique<br />

experiences shared<br />

between travellers and<br />

<strong>Canadian</strong>s. Visitors can<br />

immerse themselves in<br />

the communities they<br />

visit and experience<br />

<strong>Canadian</strong> culture and<br />

personalities.<br />

Saskatoon, Saskatchewan<br />

Darrell Noakes<br />

Awards<br />

Corporate awards<br />

FutureBrand’s Country Brand Index<br />

In <strong>2010</strong>, FutureBrand’s Country Brand Index (CBI) ranked <strong>Canada</strong> as the most powerful<br />

country brand in the world. The CBI examines how countries are branded and ranked<br />

according to key criteria, and identifies emerging global trends in travel and tourism. <strong>Canada</strong><br />

has progressed from 12th place in 2006, to 6th place in 2007, and held 2nd place in both<br />

2008 and 2009. This rise in our ranking demonstrates the salience of <strong>Canada</strong>’s revitalized<br />

tourism brand and the role of our consumer website in differentiating <strong>Canada</strong> in the global<br />

tourism marketplace.<br />

Marketing awards<br />

Webby Award for LOCALS KNOW<br />

The CTC’s LOCALS KNOW Web campaign received the Official Honouree distinction<br />

at the 14th <strong>Annual</strong> Webby Awards. Presented by The International Academy of Digital<br />

Arts and Sciences, the Webby Awards are the leading international award honouring<br />

excellence on the Internet.<br />

Silver Cassie Award for LOCALS KNOW<br />

The CTC’s LOCALS KNOW campaign won a silver Cassie award in the category of<br />

Events & Seasonal. Presented by the Institute of Communication Agencies, the Cassies<br />

are <strong>Canada</strong>’s only advertising award show based on proven business effectiveness and<br />

backed by rigorous published cases.<br />

Adrian Awards<br />

Presented by the Hospitality Sales and Marketing Association International (HSMAI),<br />

the Adrian Awards honour outstanding work in advertising, public relations and digital<br />

marketing in the travel industry. In <strong>2010</strong>, the CTC won two Adrian Awards for its work to<br />

leverage the <strong>2010</strong> Winter Games:<br />

• Gold in the “Feature Placement—Television” category for NBC’s “Today Show” host<br />

Matt Lauer’s run with the Olympic Torch in Burnaby, BC. The entry highlighted how the<br />

segment raised awareness of <strong>Canada</strong> as a top-notch travel destination, which was<br />

extended further when Lauer was interviewed by Oprah.<br />

• Silver in the “Feature Placement—Print” category for our work in hosting four Olympic<br />

hopefuls for Sports Illustrated’s (SI) celebrated swimsuit issue. Lindsey Vonn, Hannah<br />

Teter, Clair Bidez and Lacy Schnoor all came to Whistler, BC, to take part in the<br />

shoot. The special issue garnered a huge readership: 69 million people in the US, plus<br />

116 million page views online and 11.8 million video views on the SI website.<br />

“<strong>2010</strong> is <strong>Canada</strong>’s year.<br />

Rising from second to<br />

first place, brand <strong>Canada</strong><br />

displaced the USA in a<br />

coup mirroring its ice<br />

hockey gold win at<br />

the Vancouver Winter<br />

Olympics. In fact, as host<br />

of the Games, <strong>Canada</strong><br />

not only secured a record<br />

number of gold medals<br />

but delivered a successful<br />

event overall: a fact that<br />

must have helped its<br />

image as a safe, friendly,<br />

fun, world-class country.”<br />

FutureBrand’s Country Brand<br />

Index <strong>2010</strong><br />

HelmsBriscoe International Destination of the Year Award<br />

The CTC received the International Destination of the Year Award At the <strong>2010</strong> <strong>Annual</strong><br />

Business Conference of HelmsBriscoe, one of the largest third-party planning<br />

organizations in the world.<br />

Meeting Industry Marketing Award for Best Brand Marketing Campaign<br />

The CTC won a Bronze Award for the Best Brand Marketing Campaign at the Meeting<br />

Industry Marketing Awards (MIMA) <strong>2010</strong>. The annual awards ceremony is hosted by M&IT<br />

Magazine, and recognizes the marketers of the industry for their successes. The CTC’s<br />

campaign included the <strong>Canada</strong> tunnel, which was a walkway of 104 images showing<br />

different scenes of <strong>Canada</strong>, through the walkway to the exhibition halls. The submission<br />

highlighted key results from the campaign, including a 153% increase in website hits. The<br />

CTC secured 15 new leads and 38 new prospects; if these leads land, they will provide a<br />

revenue value of $5,892,500, for an ROI of 23:1.<br />

Interactive Media Awards for CTC Media Centre<br />

The CTC Media Centre won two <strong>2010</strong> Interactive Media Awards for Outstanding<br />

Achievement in the News and Travel/<strong>Tourism</strong> categories for good design, content, feature<br />

functionality, usability and standards compliance. The Interactive Media Awards are<br />

sponsored by the Interactive Media Council to recognize web professionals as leading<br />

providers of top-tier services in the marketplace.<br />

Media Innovation Awards<br />

The CTC won five Media Innovation Awards at the 11th annual event honouring excellence<br />

in the planning and buying of media in the <strong>Canadian</strong> marketing/advertising sector in <strong>2010</strong>.<br />

Only 20 Gold trophies are awarded across all media and product categories. The five<br />

awards are:<br />

• Gold in Travel, Entertainment, Leisure category: CTC Locals Know<br />

• Gold in Digital OOH/Digital Place-Based Media category: CTC Twitter Wall<br />

tribalddb.com/portfolio/ctc-twitter-wall/<br />

• Silver in Integrated Multi-Channel category: CTC Locals Know<br />

• Silver in Localization Campaign: CTC Locals Know<br />

• Bronze in Travel, Entertainment, Leisure category: CTC Twitter Wall<br />

Mexico’s W Radio Distinctive W Award for Best Office of Foreign <strong>Tourism</strong><br />

The CTC in Mexico won a Distinctive W award for the “Best Office of Foreign <strong>Tourism</strong> in<br />

Mexico for its effort at fostering tourism” from W Radio, one of the country’s most popular<br />

radio stations, now celebrating its 80th anniversary. The Distinctive W award ceremony is a<br />

high profile annual event that recognizes the best of the best in Mexico. On behalf of <strong>Canada</strong>,<br />

the team also received an honourable mention in the Best Foreign Destination category.<br />

ITB Berlin <strong>Tourism</strong> Oscar Awards: Das Goldene Stadttor<br />

During the <strong>2010</strong> ITB Berlin tradeshow—the world’s largest travel trade show—the CTC in<br />

Germany received three tourism Oscar awards for CTC-produced films:<br />

• Gold in the Region category for “Kanada für Entdecker” (<strong>Canada</strong> for Explorers)<br />

• Gold in the Events category for “Four Host First Nations”<br />

• Bronze in the Innovation category for “Clever Women TV—CANASTASIA—5 Jahre<br />

Clever Women”<br />

B2B-<strong>Tourism</strong> Best in Industry Award for <strong>Canada</strong> Specialist Program<br />

The CTC won the B2B-<strong>Tourism</strong> Best in Industry award at the <strong>2010</strong> New Media Institute<br />

Awards for its <strong>Canada</strong> Specialist Program, an interactive tool for teaching and training<br />

travel agents around the world on selling <strong>Canada</strong>.<br />

Corporate governance<br />

This section is written from a point in time perspective of December 31, <strong>2010</strong>.<br />

Constitution<br />

The CTC is a federal Crown corporation wholly owned by the Government of <strong>Canada</strong> (the “shareholder”);<br />

we are accountable to <strong>Canada</strong>’s Parliament through the Minister of Industry. The <strong>Canadian</strong> <strong>Tourism</strong><br />

<strong>Commission</strong> Act and subsequent regulations provide the legislative basis for the establishment of the CTC<br />

and our activities. We are not governed by the Public Service Employment Act and are considered a<br />

separate employer. However, we are governed by or subject to the requirements of several acts, including:<br />

• Financial Administration Act (FAA)<br />

• Official Languages Act<br />

• Privacy Act<br />

• Access to Information Act<br />

• <strong>Canada</strong> Human Rights Code<br />

• <strong>Canada</strong> Labour Code<br />

• Employment Insurance Act<br />

• Employment Equity Act<br />

• Federal Accountability Act<br />

• Public Servants Disclosure Protection Act<br />

• Conflict of Interest Act<br />

• Alternative Fuels Act<br />

The Government of <strong>Canada</strong> primarily regulates Crown corporations through their enabling legislation<br />

and through the FAA. We are currently listed under Part I, Schedule III to the FAA, and as such are<br />

required to submit an <strong>Annual</strong> <strong>Report</strong>, a Corporate Plan and an Operating Budget to the responsible<br />

Minister, and undergo regular audits by the Auditor General of <strong>Canada</strong>. A Special Examination is<br />

mandated under the FAA and a report on the findings must be submitted to the Board of Directors.<br />

The next examination is due in 2016.<br />

Strategic planning<br />

Throughout <strong>2010</strong>, a 26-member Board of Directors managed the business of the CTC. The role of<br />

the Board of Directors is to provide strategic leadership and stewardship, and approve the allocation<br />

of resources, as well as the Corporate Plan and <strong>Annual</strong> <strong>Report</strong>, which form the centrepiece of the<br />

accountability regime adopted by Parliament for federal Crown corporations.<br />

The Chair of the Board and the President & CEO are appointed by the Governor-in-Council. The<br />

remaining directors are appointed by the Minister of Industry with the approval of the Governor-in-<br />

Council. The CTC Act names the office of Deputy Minister of Industry as ex officio director.<br />

The President & CEO is accountable to the Board of Directors for the management and performance<br />

of the organization. The Board is accountable to Parliament through the Minister of Industry. The<br />

primary vehicles for reporting to the Crown are the <strong>Annual</strong> <strong>Report</strong> and the five-year Corporate Plan,<br />

a summary of which is tabled annually in Parliament and available on the CTC corporate website at:<br />

en-corporate.canada.travel/Corporate/Flyout.page?id=321&fid=338.<br />

Governance review<br />

During the 2011-2015 planning period, changes to the structure of the CTC’s Board of Directors are<br />

expected. In April 2008, the Government of <strong>Canada</strong>, through the Minister of State (Small Business &<br />

<strong>Tourism</strong>), invited the Board to carry out a broad assessment of the governance structure of the CTC.<br />

In February 2009, we retained the services of an independent consulting firm with the appropriate<br />

expertise in governance to conduct the review. The scope of the review included the assessment of<br />

our current governance framework, recommendations of an optimal governance model based on<br />

best practices and our unique nature, and recommendations on the steps required to implement the<br />

proposed model. Reflecting best practices, the final report recommended a new, streamlined, effective<br />

governance framework for the CTC as follows:<br />

• The size of the Board of Directors should be reduced to between nine and 12 members in keeping<br />

with the average size of <strong>Canadian</strong> Crown corporation boards as well as best practice;<br />

• The Executive Committee of the Board should be abolished;<br />

• Board members should be chosen for their skills and experience relevant to the CTC’s strategic<br />

needs;<br />

• Provincial and territorial deputy ministers should no longer serve on the Board. To provide direct<br />

liaison between the CTC and provincial and territorial deputy ministers on matters of mutual<br />

interest, the CTC has established a formal provincial and territorial deputy ministers’ forum that<br />

meets twice a year; and<br />

• The CTC should continue its extensive engagement with the tourism industry through advisory<br />

committees and other formal and informal methods already in place.<br />

The Board of Directors strongly supported all recommendations to move the CTC towards a more<br />

strategic organization, more relevant to government and industry, thereby enabling a truly modern<br />

corporate board to deliver effectively on the CTC’s goal to grow tourism export revenues. The results<br />

of the assessment were approved by the Board of Directors in October 2009 and subsequently<br />

submitted to the Government of <strong>Canada</strong>. The <strong>2010</strong> Budget implementation bill, the Jobs and<br />

Economic Growth Act, introduced changes to the Board, including the elimination of 14 positions as<br />

part of the federal government’s plan to improve efficiency and governance across federal departments<br />

and agencies.<br />

The CTC remains committed to reaching out and working with the tourism industry and has mechanisms<br />

in place to ensure that the CTC’s Board and management are engaged with industry, including:<br />

• The continuation of the CTC’s advisory committee structure and their important role of advising the<br />

Board of Directors and the President & CEO;<br />

• The creation of a provincial/territorial tourism Deputy Minister’s forum table that meets twice<br />

annually to ensure that all jurisdictions are current on the CTC’s activities and have the opportunity<br />

to provide input;<br />

• Regular meetings with the CTC’s destination marketing counterparts at the provincial and territorial<br />

marketing organizations, as well as Destination Marketing Association of <strong>Canada</strong> (DMAC), an<br />

organization that represents <strong>Canadian</strong> Civic destination marketing; and<br />

• <strong>Annual</strong> meetings with similar National <strong>Tourism</strong> Organizations (NTOs) with the objective of establishing<br />

best practices and international benchmarks.<br />

Board of Directors<br />

In <strong>2010</strong>, the CTC Board of Directors met four times in person in different regions of the country and<br />

three times by conference call. The Executive Committee met three times in person.<br />

Chair of the Board<br />

Mr. Steve Allan<br />

Vice-President<br />

RSM Richter Inc.<br />

Ms. Michele McKenzie<br />

Government of <strong>Canada</strong><br />

(ex officio member) 6<br />

Ms. Marie-Josée Thivierge<br />

Assistant Deputy Minister, Small<br />

Business, <strong>Tourism</strong> and Marketplace<br />

Services<br />

Industry <strong>Canada</strong><br />

National Private Sector<br />

Representatives<br />

Mr. Montie Brewer<br />

Vice-Chair of the Board<br />

Mr. Jean-Marc Eustache<br />

Transat A.T. Inc.<br />

Mr. Dray Matovic<br />

President<br />

Halex Ventures Inc.<br />

Mr. Rod A. Seiling*<br />

Ontario Racing <strong>Commission</strong><br />

Ms. Liette Lacroix Kenniff<br />

(until July <strong>2010</strong>)<br />

Mr. Scott Allison<br />

Vice-President, <strong>Canadian</strong><br />

Operations<br />

Marriott Hotels & Resorts of <strong>Canada</strong><br />

Ms. Leah George-Wilson<br />

(until November <strong>2010</strong>)<br />

Director, Treaty, Land and Resources<br />

Department<br />

Tsleil-Waututh First Nation<br />

Mr. Kosta Tomazos*<br />

President, Hospitality Investment<br />

and Management<br />

CK Atlantis Inc.<br />

Mr. George Young<br />

Chair, Economic Development<br />

Committee<br />

Huntsville, Ontario<br />

Regional Private and Public<br />

Sectors Representatives<br />

Newfoundland & Labrador<br />

and Nova Scotia<br />

Ms. Gina Hodge-Noordhof*<br />

President and Manager<br />

Norseman Restaurant and Gaiia Art<br />

Gallery<br />

L’Anse aux Meadows, Newfoundland<br />

and Labrador<br />

Ms. Kelliann Dean<br />

(until January <strong>2010</strong>)<br />

Deputy Minister<br />

Nova Scotia Department of <strong>Tourism</strong>,<br />

Culture and Heritage<br />

New Brunswick and Prince<br />

Edward Island<br />

Ms. Anne Arsenault*<br />

Owner/Operator<br />

Driftwood Country Cottages<br />

Tignish, Prince Edward Island<br />

Ms. Ellen Barry<br />

New Brunswick Department of<br />

<strong>Tourism</strong> and Parks<br />

Quebec<br />

Mr. Alexander Reford<br />

Les Jardins de Métis<br />

Grand-Métis, Quebec<br />

Ontario<br />

Mr. Bhagwant S. Parmar*<br />

Travelodge Hotel, Days Inn Hotel<br />

and Quality Hotel & Conference<br />

Centre and Spa Royal Brock<br />

Brockville, Ontario<br />

Mr. Drew Fagan<br />

(until September <strong>2010</strong>)<br />

Ontario Ministry of <strong>Tourism</strong><br />

Alberta, Northwest<br />

Territories and Nunavut<br />

Mr. Boyd Warner*<br />

Bathurst Inlet Lodge and Bathurst<br />

Arctic Services<br />

Northwest Territories<br />

Mr. Bill Werry<br />

(until December <strong>2010</strong>)<br />

Alberta <strong>Tourism</strong>, Parks and<br />

Recreation<br />

Manitoba and<br />

Saskatchewan<br />

Mr. Shaun Harbottle*<br />

Owner/Manager<br />

Crescent Beach Cottages<br />

West Hawk Lake, Manitoba<br />

British Columbia and<br />

Yukon Territory<br />

Mr. Rod Taylor<br />

Uncommon Journeys Ltd.<br />

* In January 2011, these seven Directors resigned from the Board in order to facilitate the CTC’s move towards adopting a smaller Board of<br />

Directors, as per the recommendation of the Governance Review.<br />

6<br />

The CTC Act names the office of Deputy Minister of Industry as ex officio director; however, in <strong>2010</strong> the Deputy Minister delegated these<br />

duties to the Assistant Deputy Minister, Small Business, <strong>Tourism</strong> and Marketplace Services.<br />

Committees of the Board of Directors 7<br />

In <strong>2010</strong>, the CTC Board of Directors included the following four standing committees as established<br />

by the CTC Act:<br />

Executive Committee<br />

• The Executive Committee managed urgent matters between Board meetings and exercised certain<br />

Board powers.<br />

Chair: Steve Allan<br />

Members: Montie Brewer, Jean-Marc Eustache, Michele McKenzie, Alexander Reford, Rod Seiling,<br />

Marie-Josée Thivierge, Kosta Tomazos<br />

Governance & Nominating Committee<br />

• The Governance & Nominating Committee oversaw the appointment process for private sector<br />

directors and monitored Board and committee effectiveness.<br />

Chair: Rod Seiling<br />

Members: Steve Allan, Gina Hodge-Noordhof, Liette Lacroix Kenniff, Bhagwant Parmar, Rod Taylor<br />

Audit & Pension Committee<br />

• The Audit & Pension Committee oversaw financial and management control systems, financial<br />

reporting, the administration, financial reporting and investment activities of the <strong>Commission</strong>’s<br />

pension plans, and internal audits.<br />

Chair: Kosta Tomazos<br />

Members: Steve Allan, Leah George-Wilson, Dray Matovic, Alexander Reford, Boyd Warner,<br />

Bill Werry<br />

Human Resources Committee<br />

• The Human Resources Committee carried out Human Resources strategic planning, recommended<br />

compensation for non-unionized <strong>Canadian</strong> employees, and reviewed succession planning.<br />

Chair: Alexander Reford<br />

Members: Steve Allan, Scott Allison, Ellen Barry, Kelliann Dean, Shaun Harbottle<br />

7<br />

In January 2011, the CTC modified its by-laws and all Directors became members of the Executive Committee of the Board. As a result,<br />

Executive Committee meetings scheduled for 2011 will involve all members of the Board. In addition, due to the resignation of seven Directors<br />

in January 2011 to facilitate the CTC’s move towards adopting a smaller Board of Directors, the Board felt it necessary to review the membership<br />

of all Board Committees. As such, membership of the remaining Board Committees was revised as follows:<br />

• Governance & Nominating<br />

Members: Steve Allan, Jean-Marc<br />

Eustache, George Young<br />

• Audit & Pension Committee<br />

Chair: Steve Allan (Interim)<br />

Members: Scott Allison, Montie Brewer,<br />

Dray Matovic<br />

• Human Resources Committee<br />

Chair: Scott Allison<br />

Members: Steve Allan, Rod Taylor<br />

Advisory Committee Chairs<br />

According to the CTC’s corporate bylaws, the Board of Directors may from time to time create<br />

advisory committees composed of such persons as it may deem necessary to advise it on any matters<br />

pertaining to the affairs of the <strong>Commission</strong>. In <strong>2010</strong>, there were six CTC Advisory Committees chaired<br />

by and comprised of tourism industry leaders and experts. These Advisory Committees were mainly<br />

responsible for providing advice to the Board and the CEO.<br />

<strong>2010</strong> CTC Advisory<br />

Committee Chairs 8<br />

Europe Marketing<br />

Christena Keon Sirsly<br />

Brand Experiences Committee<br />

Andrew Lind<br />

Director, Contracting & Product<br />

Jonview <strong>Canada</strong><br />

Research Committee<br />

Stephen Pearce<br />

Vice-President, Leisure Travel &<br />

Destination Management<br />

<strong>Tourism</strong> Vancouver<br />

Asia/Pacific Marketing Committee<br />

Mike Ruby<br />

Muskoka Language International Inc.<br />

Americas Marketing Committee<br />

David Whitaker<br />

<strong>Tourism</strong> Toronto<br />

Meetings, Conventions & Incentive<br />

Travel (MC & IT) Marketing<br />

Patrick Kelly (until March <strong>2010</strong>)<br />

Ottawa Congress Centre<br />

Patricia Lyall (since March <strong>2010</strong>)<br />

Destination Halifax<br />

In <strong>2010</strong>, there were also six In-<br />

Market Committees chaired by and<br />

comprised of in-market tourism<br />

industry leaders and experts. These<br />

committees were mainly responsible<br />

for providing in-market advice to<br />

CTC staff.<br />

<strong>2010</strong> In-Market Committee<br />

Chairs<br />

United Kingdom<br />

Bob Atkinson<br />

General Passenger Sales Manager,<br />

U.K. - Ireland<br />

Air <strong>Canada</strong><br />

Germany<br />

Tilo Krause-Dünow<br />

Owner<br />

CANUSA Touristik GmbH & Co. KG<br />

South Korea<br />

Young Lee<br />

General Manager<br />

Mexico<br />

Cristina Vazquez<br />

General Director of Mexico and<br />

Latin America<br />

France<br />

Patrice Caradec<br />

President, General Manager<br />

Transat France<br />

Australia<br />

David Mulley<br />

Director<br />

Asia Pacific Travel Marketing<br />

8<br />

In January 2011, the Board of Directors restructured the Advisory Committees to reflect the CTC’s strategic shift: the Americas Marketing<br />

Committee was eliminated; the Europe Marketing Committee was merged into a new Core Markets Committee; and the Asia/Pacific Committee<br />

was merged into a new Emerging Markets Committee.<br />

Senior Management Committee<br />

Left to right: Charles McKee, Lena<br />

Bullock, Chantal Péan, Paul Nursey,<br />

Michele McKenzie, Greg Klassen<br />

President and Chief Executive<br />

Officer<br />

Ms. McKenzie joined the CTC in<br />

2004 after serving as Deputy<br />

Minister of <strong>Tourism</strong>, Culture and<br />

Heritage for the Province of Nova<br />

Scotia. She has held positions on a<br />

number of boards including the<br />

Nova Scotia Liquor Corporation, the<br />

Art Gallery of Nova Scotia and the<br />

Nova Scotia Museum. She is a<br />

member of the Institute of Corporate<br />

Directors and holds a Bachelor’s<br />

degree in Commercial Recreation /<br />

Marketing and an MBA from<br />

Dalhousie University.<br />

Chantal Péan<br />

Senior Vice-President, Corporate<br />

Affairs and Corporate Secretary<br />

Ms. Péan joined the CTC in 1991<br />

and was appointed Vice-President<br />

of Corporate Affairs and Corporate<br />

Secretary in 2000, and Senior<br />

Vice-President of Corporate Affairs<br />

and Corporate Secretary in 2003.<br />

She holds a Bachelor of Science<br />

degree from the University of<br />

Manitoba, and a Bachelor of Law,<br />

Notary Diploma (Droit notarial) and<br />

MBA from the University of Ottawa.<br />

Greg Klassen<br />

Senior Vice-President, Marketing<br />

Strategy and Communications<br />

Mr. Klassen joined the CTC in 2001<br />

after having worked in marketing with<br />

both Telus and AT&T, and taught<br />

marketing at Algonquin College in<br />

Ottawa. He was appointed Vice-<br />

President of Marketing in 2005, and<br />

Senior Vice-President of Marketing<br />

Strategy and Communications in<br />

2008. He holds an MBA from<br />

Thunderbird, The American Graduate<br />

School of International Management<br />

and a Bachelor’s degree in Economics<br />

from the University of Victoria.<br />

Lena Bullock<br />

Vice-President, Finance and Chief<br />

Financial Officer<br />

Ms. Bullock joined the CTC in 2005<br />

as Executive Director, Financial<br />

Operations, and was appointed<br />

Vice-President of Finance and Chief<br />

Financial Officer in 2009. She has a<br />

Bachelor of Commerce from the<br />

University of British Columbia and is a<br />

Chartered Accountant with extensive<br />

experience in the private sector,<br />

including work with KPMG, Molson<br />

Breweries, Coca Cola Bottling<br />

Company and Blast Radius Inc.<br />

Charles McKee<br />

Vice-President, International<br />

Mr. McKee joined the CTC in 2009<br />

as Vice-President, International,<br />

after having served with Air <strong>Canada</strong><br />

for seven years, most recently as<br />

Vice-President, Marketing, based in<br />

Montreal. He has also worked with<br />

Virgin Atlantic Airways in London,<br />

the US and Asia, and served as<br />

Executive Vice-President of<br />

LastMinute.com, Europe’s largest<br />

online travel company. He holds an<br />

honours degree in East Asian<br />

Studies from Harvard University.<br />

Paul Nursey<br />

Vice-President, Strategy and<br />

Corporate Communications<br />

Mr. Nursey joined the CTC in 2006<br />

with over 10 years of tourism<br />

management experience, having<br />

worked with Rocky Mountaineer<br />

Rail Tours, Mount Seymour Resorts<br />

and <strong>Tourism</strong> Vancouver. He was<br />

appointed Vice-President of Strategy<br />

and Corporate Communications in<br />

<strong>2010</strong>. He holds degrees in<br />

Economics and Regional Planning<br />

from Simon Fraser University and a<br />

certificate in Executive Development<br />

in <strong>Tourism</strong> from the University of<br />

Hawaii at Manoa.<br />

Performance measurement<br />

Performance measurement on an ongoing basis enables us to assess our progress on fulfilling our strategy and mission, and provides us<br />

with the information needed to guide our decision-making processes.<br />

Enterprise Balanced Scorecard<br />

In 2008, we fully adopted the Balanced Scorecard (BSC) as our performance measurement framework. The BSC manages the CTC’s<br />

strategy by linking objectives, performance measures and initiatives to the strategy at all levels. By integrating financial and non-financial<br />

measures, it provides a holistic view of the organization’s overall performance. Furthermore, by acting as a strategy management tool, as<br />

well as a measurement tool, the BSC assists in strategy execution; it helps management remain focused on the strategy.<br />

The BSC identifies objectives and priorities that are critical to moving us forward in implementing our strategy. Corresponding measures<br />

and initiatives have been identified; these work together according to five different perspectives (Shareholder and Stakeholder, Customer,<br />

Budget/Financial, Internal Business Processes, and Learning and Growth) to achieve the CTC’s goal of growing tourism export revenues<br />

for <strong>Canada</strong>.<br />

We measure organizational performance in relation to the external environment, but we also monitor and adapt to the tourism economy.<br />

Therefore, the BSC contains a mixture of CTC performance measures and tourism industry indicators. For <strong>2010</strong>, the four most critical<br />

measures to achieving our goal of growing tourism export revenues for <strong>Canada</strong> were:<br />

• Aided destination awareness;<br />

• Marketing campaign ROI;<br />

• Partner contributions; and<br />

• Employee engagement.<br />

The overall aided awareness of <strong>Canada</strong> as a travel destination increased from 33.5% in 2009 to 33.9% in <strong>2010</strong>, with notable gains of<br />

12.0% in the UK and 8.7% in Australia. This is largely attributable to increased attention on <strong>Canada</strong> as a destination due to the <strong>2010</strong><br />

Winter Games.<br />

We were able to achieve strong results for our marketing efforts as expressed through the performance measure of “Marketing campaign<br />

ROI.” For every dollar invested in our stimulus campaigns, $44 was generated in tourism revenues. Likewise, for every dollar invested in<br />

our core campaigns, we generated $82 in tourism export revenues.<br />

Partnership contributions totalled $138.5 million in <strong>2010</strong>, resulting in an overall 1.32:1.0 ratio of partner contributions to our total budget<br />

allocation of $104.9 million. This result demonstrates that our programs were relevant to partners. Looking forward, the 2011 partnership<br />

landscape of the CTC will be impacted as a result of our strategic shift to cede leadership in the US leisure market to our <strong>Canadian</strong> partners.<br />

While we remain fully committed to working in partnership and offering partnering programs and access to the marketplace, our traditional<br />

target of 1:1 partnership ratio will no longer be feasible. The CTC management estimates that a target of 0.6:1 for the 2011 fiscal year is<br />

more reasonable.<br />

Our employee engagement index increased to 67.7% in <strong>2010</strong>, from 62.5% in 2009. The most significant contributor to this increase in<br />

index is for the question “I am proud to work for the CTC,” which increased by 11 points from last year.<br />

<strong>2010</strong> Enterprise Balanced Scorecard<br />

<strong>Tourism</strong> Industry Performance Indicators unit 2009 result <strong>2010</strong> target <strong>2010</strong> result<br />

1. Shareholder & Stakeholder<br />

1.1 Objective: Focus on markets of highest return on investment and convert high-yield customers<br />

a <strong>Tourism</strong> export revenues $ 14.0 B N/A 14.8 B<br />

b <strong>Tourism</strong> GDP % 2.0 N/A 2.0<br />

c <strong>Tourism</strong> employment # 616,800 N/A 610,600<br />

d International tourist receipts from CTC’s markets $ 9.4 B N/A 9.7 B<br />

e Average spend per person per night among CTC’s markets $ 106.90 N/A 106.70<br />

f <strong>Tourism</strong> domestic demand (revenue) $ 55.4 B N/A 59.1 B<br />

CTC Performance Measures unit 2009 result <strong>2010</strong> target <strong>2010</strong> result<br />

1.2 Objective: Lead industry in brand alignment and consistency<br />

a Partner brand alignment % 57 N/A* N/A*<br />

b Partner satisfaction % 85 N/A* N/A*<br />

1.3 Priority: Leverage stimulus investment to benefit the <strong>Canadian</strong> tourism industry<br />

a International intenders to domestic conversion # 404,605 234,329 648,000<br />

b Stimulus campaign ROI # 87 : 1 50 : 1 44 : 1<br />

1.4 Priority: Maintain positive and collaborative relationship with shareholder<br />

a Shareholder engagement % 89 75 88<br />

b Compliance with the Official Languages Act Grade Exemplary (A) Good (B) No grade in <strong>2010</strong>**<br />

1.5 Priority: Increase engagement with small and medium sized enterprise (SME) community<br />

a SME direct participation in CTC programs # N/A 10,000 9,938<br />

b CTC News subscriptions # 10,679 50,000 11,332<br />

2. Customer<br />

2.1 Objective: Focus on markets of highest return on investment and convert high-yield customers<br />

a Marketing campaign ROI + ratio 101 : 1 50 : 1 82 : 1<br />

b MC & IT leads and prospects # 1,003 1,025 1,064<br />

c MC & IT lead conversion % N/A 10 30<br />

2.2 Priority: Ensure customer relevancy and differentiate <strong>Canada</strong><br />

a Aided destination awareness + % 33.5 38.5 33.9<br />

b Aided destination consideration % 71.6 77.0 71.8<br />

c Aided brand awareness % 43.9 50.0 44.7<br />

d Country brand rank<br />

Top 5:<br />

Yes/No (rank)<br />

Yes (2) Yes (5) Yes (1)<br />

2.3 Priority: Leverage exposure and best practices for <strong>Canada</strong> of the <strong>2010</strong> Winter Games<br />

a<br />

PR impressions in CTC markets covering both <strong>Canadian</strong> tourism and the <strong>2010</strong><br />

Winter Games<br />

# 2.3 B 1.9 B 13.5 B<br />

b<br />

Ad equivalency in CTC markets covering both <strong>Canadian</strong> tourism and the <strong>2010</strong><br />

$ 82.4 M (print) 95 M 1.1 B<br />

3. Budget & Finance<br />

3.1 Priority: Foster organizational excellence<br />

a Partner contribution + ratio 1.26 : 1 1 : 1 1.32 : 1<br />

b Variance to forecast (Q2) % 4.3 1.0 2.0<br />

c Overhead costs % 14.5 18 maximum 15.4<br />

4. Internal Operations<br />

4.1 Priority: Foster organizational excellence<br />

a Systems effectiveness % N/A benchmark Measure removed***<br />

b Alignment of budget and planning process Yes/No N/A Yes Yes<br />

c “Managing for Results” maturity level 5-point scale N/A 4 4<br />

5. Learning & Growth<br />

5.1 Priority: Foster organizational excellence<br />

a Core values exhibited % 58.3 70.0 58.3<br />

b Employee engagement + % 62.5 65.0 67.7<br />

c Training plan implemented by both supervisor and employee % N/A 80 Measure removed****<br />

While the CTC contributes to the achievement of broader tourism industry outcomes, such as increases in tourism revenue and employment, the efforts of other provincial/territorial and destination<br />

marketing organization, as well as tourism SMEs, also have an impact on the performance of the tourism sector. Given that it is difficult to link the results in the tourism sector directly to the efforts<br />

of the CTC, the CTC does not set targets for industry performance indicators.<br />

Legend<br />

+ CTC Critical Metric<br />

* Partner brand alignment and partner satisfaction data is collected every two years through the CTC’s Bi-<strong>Annual</strong> Partner Survey.<br />

** The Office of the <strong>Commission</strong>er of Official Languages now evaluates the CTC biennially; next report will be in 2011.<br />

*** Result for this measure was not available in <strong>2010</strong> due to delayed acquisition and implementation of the applicable IT applications.<br />

**** Due to the reduced capacity to track this measure as a result of the re-organization, as well as the policy change not requiring requests for training to be approved by the People Development<br />

Unit, this measure was removed for the organization.<br />

<strong>2010</strong> Enterprise Balanced Scorecard Measure Definitions<br />

1.1a <strong>Tourism</strong> export revenues: Total spend by<br />

foreign visitors on <strong>Canadian</strong>-produced tourism<br />

goods and services. Purchases may take place<br />

outside of <strong>Canada</strong> if the goods or services are<br />

supplied by a <strong>Canadian</strong> company e.g. purchase<br />

of an airline ticket from a <strong>Canadian</strong> international<br />

carrier to travel to <strong>Canada</strong>. Source: National<br />

<strong>Tourism</strong> Indicators, Statistics <strong>Canada</strong>.<br />

1.1b <strong>Tourism</strong> gross domestic product (GDP):<br />

Unduplicated value of production, within the<br />

boundaries of a region, of goods and services<br />

purchased by tourists; represented as a share of<br />

total GDP. Source: National <strong>Tourism</strong> Indicators,<br />

Statistics <strong>Canada</strong>.<br />

1.1c <strong>Tourism</strong> employment: The number of jobs<br />

generated, directly or indirectly, by tourism<br />

spending. It is based on an estimate of jobs<br />

rather than “hours of work.” Thus, someone who<br />

works 10 hours a week counts for as much, by<br />

this measure, as someone who works 50 hours<br />

a week. Source: National <strong>Tourism</strong> Indicators,<br />

1.1d International tourist receipts from CTC’s<br />

markets: Total spend by visitors from CTC’s key<br />

markets on <strong>Canadian</strong>-produced tourism goods<br />

and services during stays of at least one night.<br />

Purchases may take place outside of <strong>Canada</strong> if<br />

the goods or services are supplied by a <strong>Canadian</strong><br />

company (e.g. purchase of an airline ticket<br />

from a <strong>Canadian</strong> international carrier to travel<br />

to <strong>Canada</strong>). Source: International Travel Survey,<br />

1.1e Average spend per person per night<br />

among CTC’s markets: A measure of yield<br />

achieved from inbound visitors from CTC’s core<br />

markets, based on total trip spend and the<br />

number of nights spent in <strong>Canada</strong>.<br />

1.1f <strong>Tourism</strong> domestic demand (revenue): Total<br />

spend in <strong>Canada</strong> by <strong>Canadian</strong>s on domestically<br />

produced commodities. Note: not seasonally<br />

adjusted. Source: National <strong>Tourism</strong> Indicators,<br />

1.2a Partner brand alignment: Percentage of<br />

partners who have aligned with at least one<br />

element of the CTC brand: visual identity (e.g. logo,<br />

colour palette, typography, pattern bar graphics);<br />

tone and writing style; experiential photography<br />

style; and/or assets (video, text, social media).<br />

Source: CTC’s Bi-<strong>Annual</strong> Partner Survey.<br />

1.2b Partner satisfaction: Percentage of<br />

partners who are satisfied with their relationship<br />

with the CTC. Source: CTC’s Bi-<strong>Annual</strong> Partner<br />

Survey.<br />

1.3a International intenders to domestic<br />

conversion: A projection of the number of<br />

<strong>Canadian</strong>s who were intending on travelling to an<br />

international destination and, upon exposure to<br />

the campaign, decided to travel within <strong>Canada</strong>.<br />

1.3b Stimulus campaign ROI: The value of<br />

tourist receipts generated by CTC’s stimulus<br />

marketing campaigns per dollar spent to execute<br />

the campaigns. This form of conversion counts<br />

those individuals who were considering travelling<br />

to/within <strong>Canada</strong> but had not yet booked a trip<br />

prior to being exposed to the campaign, and<br />

were positively influenced to visit or book a trip to/<br />

within <strong>Canada</strong> upon seeing the advertising.<br />

1.4a Shareholder engagement: Percentage of<br />

Government shareholders who feel they receive<br />

the right level of support and information from the<br />

CTC. Source: CTC <strong>Annual</strong> Shareholder Survey.<br />

36<br />

1.4b Compliance with the Official Languages<br />

Act: The overall rating given by The Office of the<br />

<strong>Commission</strong>er of Official Languages; the CTC is<br />

among numerous federal institutions evaluated<br />

biennially in terms of its obligations under the<br />

Official Languages Act. Source: www.ocol-clo.<br />

gc.ca/html/performance_rendement_e.php<br />

1.5a SME direct participation in CTC programs:<br />

Number of times SMEs were engaged by the<br />

CTC, including:<br />

• Requested the Experiences toolkit and/or<br />

Brand Guidelines;<br />

• Attended a CTC seminar or presentation;<br />

• Provided product for the CTC’s website; and/or<br />

• Participated in a CTC-led initiative.<br />

1.5b CTC News subscriptions: The number of<br />

individuals who subscribe to CTC News. Note<br />

that an organization may have multiple individuals<br />

subscribed.<br />

2.1a Marketing campaign ROI: The value of<br />

tourist receipts generated by CTC’s core marketing<br />

campaigns per dollar spent to execute the<br />

campaign. This form of conversion counts those<br />

individuals who were considering travelling to<br />

<strong>Canada</strong> but had not yet booked a trip prior to<br />

being exposed to the campaign, and were<br />

positively influenced to visit or book a trip to<br />

<strong>Canada</strong> upon seeing the advertising.<br />

2.1b MC&IT leads and prospects: The CTC<br />

considers a lead to be an organization that is<br />

seriously considering hosting an event in <strong>Canada</strong>.<br />

A prospect is considered to be an organization<br />

that has the capability of holding an event in<br />

<strong>Canada</strong> and has a need to hold an event; is<br />

aware of <strong>Canada</strong>; has legitimate authority and<br />

ability to buy or commit; has a sense of urgency<br />

about making a buying decision; and has no<br />

requirements that would exclude <strong>Canada</strong>.<br />

2.1c MC&IT lead conversion: The number of<br />

MC&IT leads that have resulted in an actual<br />

booking made this calendar year. Note the lead<br />

itself could have occurred in a previous year; we<br />

are measuring when the booking was made.<br />

2.2a Aided destination awareness: Percentage<br />

of long-haul travellers in CTC markets who rate<br />

their knowledge of vacation opportunities in<br />

<strong>Canada</strong> as “excellent” or “very good” after having<br />

been prompted with a set of predetermined<br />

destinations.<br />

2.2b Aided destination consideration:<br />

Percentage of long-haul travellers in CTC markets<br />

who are “somewhat” or “very interested” in visiting<br />

<strong>Canada</strong> in the next two years when prompted<br />

about <strong>Canada</strong> among a set of competitive<br />

2.2c Aided brand awareness: The average value<br />

of Aided destination awareness, Aided destination<br />

consideration and Aided advertising awareness in<br />

CTC markets. Aided advertising awareness is the<br />

percentage of respondents in CTC markets who<br />

recall seeing or hearing any <strong>Canadian</strong> advertising<br />

related to travel or holidays within three months<br />

of the survey.<br />

2.2d Country brand rank: An annual rank of<br />

country brands, according to the FutureBrand’s<br />

Country Brand Index. The approach incorporates<br />

a global quantitative survey, expert opinions and<br />

external statistics which are compared and<br />

combined to better understand drivers, preference,<br />

importance and relativism of country brands.<br />

2.3a PR impressions in CTC markets covering<br />

both <strong>Canadian</strong> tourism and the <strong>2010</strong> Winter<br />

Games: The total number of people potentially<br />

exposed to a print or broadcast story that was<br />

influenced by the CTC, or featured CTC assets,<br />

and mentioned both <strong>Canadian</strong> tourism and the<br />

<strong>2010</strong> Winter Games.<br />

2.3b Ad equivalency in CTC markets covering<br />

Games: The equivalent advertising value of a<br />

print-based editorial story or broadcast media that<br />

was influenced by the CTC (i.e. CTC supported<br />

the trip for the journalist and/or broadcast crew<br />

in some way: paid for airfare or worked with<br />

partners to host the media). Pricing as indicated<br />

by the print/broadcast medium through which<br />

the article was published/aired will be used or,<br />

if unavailable, an industry average price will be<br />

used. Multipliers will not be applied.<br />

3.1a Partner contribution: Ratio of total<br />

partner contributions (cash, in-kind, parallel,<br />

3rd party) versus CTC investment (parliamentary<br />

appropriations).<br />

3.1b Variance to forecast (Q2): Actual<br />

expenditures subtracted from expenditures<br />

forecasted at the end of the second quarter,<br />

divided by the total expenditure forecasted at the<br />

end of the second quarter. A positive variance<br />

indicates that actual spend is under budget; a<br />

negative variance indicates that actual spend in<br />

over budget.<br />

3.1c Overhead costs: Overhead costs divided<br />

by total appropriations and partnership cash<br />

revenues. Overhead is defined as total<br />

compensation and operating costs excluding<br />

compensation, professional services and contract<br />

help costs directly related to marketing and<br />

sales units. Overhead also excludes website<br />

maintenance costs.<br />

4.1a Systems effectiveness: Employee<br />

satisfaction with the support provided by<br />

applicable IT applications.<br />

4.1b Alignment of budget and planning<br />

process: Whether or not the budget and planning<br />

processes occurred with mutual consultation and<br />

consideration.<br />

4.1c “Managing for Results” maturity level:<br />

The stage at which the CTC rates in terms of the<br />

TBS Managing for Results Self-Assessment tool.<br />

There are five stages overall; items measured<br />

include:<br />

• Commitment to Results;<br />

• Results-based strategic planning;<br />

• Operational/business planning;<br />

• Measuring results; and<br />

• <strong>Report</strong>ing on Results.<br />

5.1a Core values exhibited: Average value of<br />

three Employee Survey questions regarding how<br />

the company overall effectively demonstrates the<br />

CTC’s core values of innovation, collaboration and<br />

respect.<br />

5.1b Employee engagement: An index measuring<br />

an employee’s belief in the CTC’s mission and<br />

vision, and their commitment to the CTC as<br />

demonstrated through their hard work, passion<br />

and organizational pride.<br />

5.1c Training plan implemented by both<br />

supervisor and employee: Percentage of<br />

employees who completed their training plan<br />

during the year (as agreed upon in each employee’s<br />

mid-year personal balanced scorecard).

Management discussion & analysis<br />

Our goal: Grow tourism export revenues for <strong>Canada</strong>.<br />

Our vision: Inspire the world to explore <strong>Canada</strong>.<br />

Our mission: Harness <strong>Canada</strong>’s collective voice to grow tourism export<br />

revenues.<br />

Our core values: Innovation, collaboration, respect.<br />

Our mandate:<br />

• Sustain a vibrant and profitable <strong>Canadian</strong> tourism industry;<br />

• Market <strong>Canada</strong> as a desirable tourism destination;<br />

• Support a cooperative relationship between the private sector and the<br />

governments of <strong>Canada</strong>, the provinces and the territories with respect to<br />

<strong>Canadian</strong> tourism; and<br />

• Provide information about <strong>Canadian</strong> tourism to the private sector and to<br />

the governments of <strong>Canada</strong>, the provinces and the territories.<br />

The following Management discussion and analysis section should be read in conjunction<br />

with the financial statements and notes included in this annual report.<br />

Important accounting estimates<br />

The CTC’s significant accounting policies are described in Note 2 of the financial statements.<br />

The preparation of financial statements in conformity with <strong>Canadian</strong> generally accepted<br />

accounting principles requires management to make estimates and assumptions. The<br />

most significant estimates involve the determination of employee future benefits, the<br />

useful lives for amortization of property, equipment and tangible assets, asset retirement<br />

obligation and financial instruments.<br />

Corporate planning<br />

The <strong>2010</strong>-2014 Corporate Plan established our objectives and priorities for <strong>2010</strong> and<br />

reaffirmed the strategic goal of growing tourism export revenues for <strong>Canada</strong>. By concentrating<br />

our efforts on the following three objectives, we worked to achieve our mandate for the<br />

benefit of <strong>Canada</strong>’s tourism industry:<br />

• Focus on markets of highest return on investment and convert high-yield customers<br />

- Concentrate on those geographic markets or customer market segments with the<br />

highest potential for return on investment.<br />

- Deepen the relationship with high-yield customers to influence their travel decisions<br />

and establish them as travel purchasers.<br />

Management discussion and analysis<br />

• Lead industry in brand alignment and consistency<br />

- Harness <strong>Canada</strong>’s collective voice and work closely with industry to communicate the<br />

advantage of a strong, consistent global brand for <strong>Canada</strong>.<br />

- Lead industry and government in tourism marketing.<br />

- Ensure brand alignment and relevancy.<br />

• Respond to changing market dynamics<br />

- Be nimble and focus on both short-term and long-term potentials for maximizing<br />

return on investment as markets mature and evolve.<br />

In addition, the following six key priorities for action formed the framework for how we<br />

worked towards achieving our three objectives in <strong>2010</strong>:<br />

• Ensure customer relevancy and differentiate <strong>Canada</strong><br />

- Develop and maintain relevant communication with targeted potential travellers and<br />

ensure that the marketing messaging they receive is relevant and addresses their<br />

interests and expectations as customers.<br />

- Position <strong>Canada</strong>’s tourism brand as a leading storytelling brand in the world where<br />

travellers create extra-ordinary stories all their own.<br />

• Increase engagement with the small and medium-sized enterprise (SME) community<br />

- Engage the SME community in order to strengthen and leverage the backbone of<br />

<strong>Canada</strong>’s visitor economy.<br />

• Leverage exposure and best practices of the Vancouver <strong>2010</strong> Olympic and<br />

Paralympic Winter Games for <strong>Canada</strong><br />

- Highlight <strong>Canada</strong> to the world by creating a tourism personality for <strong>Canada</strong> before the<br />

Games, focus on media relations and Web communications during the Games, and<br />

work with partners to harvest the “afterglow” following the Games.<br />

• Foster organizational excellence<br />

- Focus on becoming a “strategy-focused organization” with the right tools, people and<br />

resources in place to deliver.<br />

• Maintain positive and collaborative relationship with the shareholder<br />

- Engage the shareholder in order to enhance the perception of the CTC as a valueadding<br />

corporation that provides crucial insight and coordinates activities to benefit<br />

<strong>Canada</strong>’s tourism industry.<br />

• Leverage stimulus investment to benefit the <strong>Canadian</strong> tourism industry<br />

- Leverage the opportunity of this two-year window by achieving the greatest possible<br />

outcomes for the tourism industry during challenging economic times and ensure<br />

<strong>Canada</strong>’s tourism industry is well-positioned for the future economic recovery.<br />

- Focus on providing an immediate economic benefit to <strong>Canada</strong>’s tourism industry<br />

while demonstrating long-term potential for return on investment.<br />

- Increase awareness of the visitor economy through domestic marketing and enhancing<br />

the CTC’s relevance for SMEs.<br />

As part of our 2011-2015 planning process that took place in <strong>2010</strong>, we made several<br />

strategic decisions that will affect our corporate objectives and priorities in 2011 and<br />

beyond. By concentrating our efforts on the following two objectives, we will be in the<br />

best position possible to achieve our mandate for the benefit of <strong>Canada</strong>’s tourism industry:<br />

• Increase demand for <strong>Canada</strong>’s visitor economy<br />

- Generate wealth for <strong>Canadian</strong>s by focusing on both short-term and long-term potential<br />

for maximizing return on investment as markets mature and evolve.<br />

- Engage in effective tourism marketing, promotions and market development activities<br />

supported by market research as we aim to support the achievement of <strong>Canada</strong>’s<br />

national tourism revenue goal of $100 billion by 2015.<br />

• Focus on markets where <strong>Canada</strong>’s tourism brand leads and yields the highest<br />

return on investment<br />

- Concentrate on those geographic markets or consumer market segments where<br />

marketing at the national level (i.e. <strong>Canada</strong>’s tourism brand) leads to the highest<br />

potential for return on investment.<br />

- Convert high-yield customers by investing in appropriate communication channels<br />

based on insights from customer segmentation research and the path-to-purchase<br />

model.<br />

In addition, the following four key priorities for action form the framework for how we will<br />

achieve our two objectives in the 2011-2015 period:<br />

ensure that the marketing message they receive is relevant and addresses their<br />

interests and expectations as consumers.<br />

- Position <strong>Canada</strong>’s tourism brand as one of the leading experiential tourism brands in<br />

the world, where travellers create extra-ordinary stories all their own.<br />

• Harvest the afterglow of the Vancouver <strong>2010</strong> Olympic and Paralympic Winter<br />

Games for <strong>Canada</strong><br />

- Engage with industry partners and international travel intermediaries to target consumers<br />

with the aim of converting consumer interest in <strong>Canada</strong> from media coverage of the<br />

<strong>2010</strong> Winter Games into travel intentions, with a focus on closing the sale.<br />

• Lead industry in international brand alignment and consistency<br />

- Work closely with industry and governments at all levels to communicate the advantage<br />

of a strong, consistent international tourism brand for <strong>Canada</strong>.<br />

- Engage export-ready small and medium-sized tourism enterprises (SMEs) in CTC<br />

communications platforms to align supply with consumer demand in international<br />

markets and to strengthen the value of <strong>Canada</strong>’s tourism brand by showcasing<br />

compelling product experiences.<br />

- Drive brand alignment and relevancy.<br />

- Be a “strategy-focused organization” with the right tools, people and resources in<br />

place to deliver.<br />

- Maintain a positive and collaborative relationship with the shareholder.<br />

- Focus on overhead management and implement cost containment measures.<br />

Financial performance<br />

a) Government funding<br />

As a federal Crown corporation, we receive an annual appropriation from our shareholder,<br />

the Government of <strong>Canada</strong>. The CTC relies on this appropriation to fund the majority of<br />

our operating and capital costs.<br />

Appropriations provided to the CTC do not parallel financial reporting according to<br />

<strong>Canadian</strong> generally accepted accounting principles since appropriations are primarily based<br />

on cash flow requirements. Consequently, items recognized in the Statement of operations,<br />

comprehensive income and accumulated deficit and the Statement of cash flows are not<br />

necessarily the same as those provided through appropriations from Parliament.<br />

The <strong>Commission</strong> will have a deferred parliamentary appropriations balance at year-end<br />

when the appropriations received exceed expenses incurred. On the other hand, the<br />

<strong>Commission</strong> will have a parliamentary appropriations receivable balance when expenses<br />

incurred exceed parliamentary appropriations received. Deferred or receivable appropriation<br />

balances reflect timing differences between realized expenditures and cash appropriation<br />

receipts. The <strong>Commission</strong> does not have the authority to exceed approved appropriations.<br />

Also, as the CTC has a different fiscal year end from the Government of <strong>Canada</strong>,<br />

appropriations used by the CTC in a fiscal year are drawn from two fiscal periods of the<br />

government. For the year ended December 31, <strong>2010</strong>, the CTC drew down appropriations<br />

approved from government fiscal periods 2009-10 and <strong>2010</strong>-11 (Note 8). Under generally<br />

accepted accounting principles, appropriations are recognized in our financial statements<br />

as expenses are incurred. For the year ended December 31, <strong>2010</strong>, this amounted to<br />

$106.3 million. For capital assets, appropriations are recognized on the same basis of<br />

amortization as the underlying assets. This amount was $2.3 million for the <strong>2010</strong> fiscal<br />

period. Thus, the total amount of appropriations recognized for the year on our financial<br />

statements was $108.6 million.<br />

Available Parliamentary Appropriations<br />

millions of CAD<br />

The CTC’s base appropriations were once as high as $98.7 million in 2001, the first year<br />

of the CTC’s existence as a Crown corporation, and have declined significantly since that<br />

time. Base funding for 2009-10 was $77.4 million, which includes $1.6 million for<br />

compensation adjustments related to the signing of the collective bargaining agreement<br />

for <strong>Canadian</strong> based staff, $803,000 of which was retroactive to prior years. Appropriations<br />

for 2009/10 also reflect a $230,000 funding cut. Base funding for <strong>2010</strong>-11 is $75.6 million,<br />

which reflects efficiency reductions of $421,000 and strategic review reallocation of<br />

$896,000. 2011-12 base funding will reflect the full, cumulative impacts of both the<br />

efficiency reductions ($649,000) and strategic review reallocation ($4.2 million). Resulting<br />

2011-12 funding is estimated to be $72.0 million. In anticipation of a reduced base funding<br />

level, CTC management implemented a new, leaner, more scalable operating structure in<br />

<strong>2010</strong>, which would allow the CTC to operate with lower overhead costs in the future.<br />

In <strong>2010</strong>, Partnership the CTC revenues continued to receive funding in support of two Total major expenditures initiatives: <strong>2010</strong><br />

Olympics millions Games of CAD Strategy and Budget 2009 Economic Action millions Plan of (Stimulus). CAD<br />

120<br />

100<br />

80<br />

60<br />

6.6<br />

20.0<br />

7.7<br />

28.0<br />

5.0<br />

4.0<br />

20<br />

160<br />

On October 18, 2007, the Treasury Board of <strong>Canada</strong> approved $26 million of one-time<br />

funding to support the <strong>Commission</strong> in delivering programs related to the <strong>2010</strong> Winter<br />

Olympic and Paralympic Games. These funds are being utilized over a five year period,<br />

15<br />

2.1<br />

starting in fiscal 2008. To-date, 1.7 the <strong>Commission</strong> has requested and received $21 million.<br />

0.7<br />

The remaining amounts will be requested through Main Estimates appropriations over 20.3<br />

0.1<br />

2.8<br />

5.5<br />

Government Fiscal years <strong>2010</strong>-11 and 2011/12.<br />

9.5<br />

10<br />

25.3<br />

7.9<br />

40<br />

0<br />

76.1<br />

77.4<br />

75.6<br />

72.0<br />

08/09 09/10 10/11 11/12<br />

(est)<br />

Government funding year<br />

Base Olympics Stimulus<br />

Budget 2009 provided the CTC with $40 13.5<br />

89.4<br />

million of one-time funding over two years, 80.7<br />

12.2<br />

2009-10 5 and <strong>2010</strong>-11, as 10.5 part of the greater stimulus package 40which formed <strong>Canada</strong>’s<br />

Economic Action Plan. In May <strong>2010</strong>, the Government of <strong>Canada</strong> announced an additional<br />

$8 million for the CTC. Of the $8 million, the CTC dedicated $2.8 million to its <strong>2010</strong> fiscal<br />

year to 0 expand activities in existing program areas that are directly 0 linked to our mandate<br />

and build upon 2008 existing expertise 2009 in global <strong>2010</strong>marketing, media and public 2008 relations. 2009 The<br />

<strong>2010</strong><br />

remaining $5.2 Core million will Olympics be utilized Stimulus in the first quarter of 2011. In <strong>2010</strong>, Core the CTC Olympics requested Stimulus<br />

and received $42.8 million of funding for its Economic Stimulus activities. All of the CTC’s<br />

stimulus programs will be completed by March 31, 2011.<br />

Overhead<br />

percent<br />

Capital and intangible additions<br />

thousands of CAD<br />

25%<br />

20%<br />

17.4 18.4 19.1<br />

15.4<br />

20.3<br />

2000<br />

1500<br />

1,338<br />

1,882<br />

b) Partnership revenues<br />

As the CTC is an organization that is committed Available to partnering Parliamentary with the Appropriations<br />

industry, many<br />

programs are funded by both the CTC and industry millions of partners. CAD In some cases, the programs<br />

are led and managed by the partners and in these situations funds would be paid to the<br />

partner for the CTC’s share of the program costs. In other instances, the CTC manages the<br />

programs and then the partners pay their share of the costs to the CTC; these are recorded<br />

as revenue and reported as partnership contributions in our 20.0 statement 28.0 of operations.<br />

80 6.6 7.7<br />

In <strong>2010</strong>, the CTC recognized $16.3 million of these types of partnership contributions, 4.0 up<br />

from $15.0 million in 2009. The increase is largely<br />

attributable to higher levels of partnering<br />

in Core activities in the US, Germany, France, UK and South Korea.<br />

40 76.1 77.4 75.6 72.0<br />

The CTC recognized $0.7 million of partner revenue from <strong>2010</strong> Olympic Games initiatives,<br />

down $2.1 million from prior year. The CTC realized 20 significant partnership revenues in<br />

2009 from the National Asset Development Program 9 and with the <strong>Canada</strong> Border Services<br />

Agency leading up to the Games.<br />

Stimulus activities generated $2.1 million of partner revenues, Government up $0.4 funding million yearfrom 2009<br />

mainly from the Domestic program.<br />

c) Other revenues<br />

Other revenues consist mainly of commodity tax recoveries and interest revenue. Due to<br />

drops in the prime rate, interest revenues are no longer a significant revenue source. For<br />

<strong>2010</strong>, interest revenues are $188,000.<br />

Partnership revenues<br />

1.7<br />

10.5<br />

13.5<br />

2008 2009 <strong>2010</strong><br />

Core Olympics Stimulus<br />

Total ex<br />

millions o<br />

The CTC engages various commodity tax recovery service providers who successfully<br />

ilable Parliamentary recovered $200,000 Appropriations in commodity taxes Partnership Overhead for <strong>Canada</strong> revenues and Japan. These recoveries have<br />

ns of CAD<br />

been recognized as Other Revenues.<br />

millions percent of CAD<br />

Total expenditures<br />

Capital and<br />

thousands of C<br />

d) Expenditures<br />

2025%<br />

Total expenditures have changed significantly year over year due to the impact of onetime<br />

20.0 funded initiatives 28.0 related to the <strong>2010</strong> Olympics 17.4 18.4 19.1<br />

and Stimulus (refer to chart below).<br />

Overall 7.7 expenditures (excluding amortization) 15% were $122.6 million 1.7 in <strong>2010</strong> ($110.5 14.5million<br />

in 2009), made up of $89.4 4.0 million Core, $7.9 million Olympic and $25.3 million Stimulus<br />

spending. Total expenditures are up $12.1 10%<br />

million from 2009.<br />

5%<br />

4.5<br />

89.4 80.7<br />

Marketing and sales spending was higher by $9.1 million. 3.0Spending for Stimulus activities<br />

3.5<br />

77.4 75.6 72.0<br />

was higher by $4.4 million as <strong>2010</strong> included 5 a full year of Stimulus 10.50 activities, compared 0 40<br />

0.2<br />

0%<br />

to only part of 2009. Core marketing and sales spending 2008 increased by $5.8 million from 2009 <strong>2010</strong><br />

core activities such as Ski, and the extension of UK and Germany spring/fall campaign, of<br />

Total Core Olympic<br />

which $3.0 million was covered by increased 0 partner revenues, and a further $2.7 million 0<br />

Stimulus<br />

in new initiatives with NBC and Australia Fall campaign, Germany and UK broadcast,<br />

Government Explore Like funding a Local yearand EQ/Market research. This Core is offset Olympics by decrease Stimulus in Olympic spend<br />

of $1.1 million due to wind-down post Games and shift to conversion work.<br />

1000<br />

500<br />

9<br />

This $4.2 million project, led by the CTC in partnership with all 13 provincial and territorial tourism marketing organizations,<br />

produced a robust inventory of fresh <strong>Canadian</strong> tourism stories and visual assets for use by media and tourism industry partners.<br />

In July <strong>2010</strong>, the CTC announced a significant strategic shift which resulted in the<br />

implementation of the new, leaner, more scalable organizational structure. This new structure<br />

included a reduction of 46 staff and the elimination of 8 office leases. To-date, the CTC<br />

has incurred $3.3 million of one-time costs related to the implementation of the new<br />

structure. Management expects to achieve a $5.6 million on-going, annual cost reduction<br />

by 2012 in compensation and operating expenditures.<br />

Web maintenance costs are $745,000 lower than the prior year due to the transition to a<br />

new hosting provider in mid-2009.<br />

Pension plans:<br />

The CTC offers a number of pension plans to its employees. Details of these pension<br />

plans are provided in Note 7 of the financial statements. Since 2005, the CTC has<br />

contributed $5.1 million in special payments to the <strong>Canadian</strong> defined benefit pension plan<br />

to fund the ongoing concern of unfunded liabilities and solvency deficiencies. Due to the<br />

financial burden and the complexity of these arrangements, in prior years, the pension<br />

plans have been identified as one of the CTC’s higher risks (refer to Enterprise risk<br />

management section). The CTC has taken several steps to mitigate the financial risk<br />

including establishing a defined contribution pension plan for <strong>Canadian</strong> excluded<br />

employees hired on or after August 1, 2005 and for <strong>Canadian</strong> unionized employees<br />

hired on or after August 1, 2005 effective March 8, 2007. In <strong>2010</strong>, the CTC has taken<br />

advantage of relief measures offered through the Solvency Funding Relief Regulations,<br />

2009 (the Regulations), thereby reducing the amount of annual special payment.<br />

Foreign exchange:<br />

The CTC’s functional currency is the <strong>Canadian</strong> dollar, but it regularly transacts in multiple<br />

foreign currencies as it operates internationally. As a result, the CTC is exposed to<br />

fluctuations in foreign exchange rates. Transactions involving foreign currencies are<br />

translated into <strong>Canadian</strong> dollar equivalents using rates of exchange in effect at the time<br />

of those transactions. Gains and losses resulting from foreign currency transactions are<br />

reported on the Statement of operations as “Corporate Services” and are considered<br />

an Operating expense. Monetary assets and liabilities denominated in foreign currencies<br />

are translated into <strong>Canadian</strong> dollars at the rate of exchange in effect at year end with any<br />

resulting translation gain or loss being included in Statement of operations as “Corporate<br />

Services” and are considered an Operating expense.<br />

Throughout <strong>2010</strong>, the foreign exchange rates of most currencies were moderately stable<br />

with the exception of the depreciating euro and the appreciating Japanese yen. This is<br />

in contrast to the dramatic fluctuations of the US dollar and Japanese yen witnessed<br />

throughout 2009. The foreign exchange gain/loss on transactions and translation were<br />

both nominal gains in <strong>2010</strong>, compared to 2009 which yielded a transaction gain of<br />

$516,000 and a translation loss of $244,000.<br />

20.0 28.0<br />

In <strong>2010</strong>, the CTC continued its efforts to 4.0 replace its existing enterprise systems, seeking<br />

alternative 60 tools for its customer relationship management tool, financial system, HRIS<br />

and balanced scorecard reporting. The CTC anticipates vendor selection to be completed<br />

in early 40 2011 followed by a phased implementation.<br />

76.1 77.4 75.6 72.0<br />

Overheads: 20<br />

The CTC tracks its overhead percentage (defined as non-marketing and sales compensation<br />

and operating 0 costs divided by total parliamentary appropriations 0 plus partnership<br />

revenues)<br />

08/09<br />

as a key<br />

09/10<br />

metric and<br />

10/11<br />

targets<br />

11/12<br />

to maintain a percentage<br />

2008<br />

of less than<br />

2009<br />

18%. This<br />

metric appears Government on the corporate funding balanced year scorecard and personal Core balanced Olympics scorecards Stimulus<br />

of senior management personnel.<br />

The overall overhead percentage is 15.4% in <strong>2010</strong>, up 0.9% from prior year, but still<br />

below the targeted maximum. Core overhead percentage has been increasing over the<br />

past several years and has crept over 20% in <strong>2010</strong>, exceeding the targeted maximum of<br />

18%, as fixed operating costs continued to rise. Management expects Core overheads to<br />

decline in future years as a result of its new leaner structure.<br />

80.7<br />

15%<br />

10%<br />

14.5<br />

1,086<br />

3.0<br />

0 0<br />

45<br />

433<br />

346<br />

259<br />

82<br />

21<br />

2008 2009<br />

Total Core Olympic Stimulus<br />

Website Office furniture<br />

Leasehold improvements<br />

e) Capital and intangible asset additions<br />

Additions totalled $563,000 in <strong>2010</strong> ($3.3 million in 2009), down $2.8 million versus 2009.<br />

In 2009, the CTC incurred $1.7 million of web development costs for the new consumer,<br />

media and corporate websites and $240,000 of web-hosting infrastructure costs. These<br />

costs were not repeated in <strong>2010</strong>. Also, in 2009, the CTC recognized $843,000 of asset<br />

retirement obligations related to several leased offices.<br />

ulus<br />

19.1<br />

2009 <strong>2010</strong><br />

366<br />

49 110<br />

21 3 26 13<br />

Core Olympic Stimulus<br />

Website Office furniture Computer hardware<br />

Leasehold improvements Computer software<br />

f) Outlook<br />

Looking ahead, 2011 will be the first full year after implementing the strategic shift and the<br />

new organizational structure. Stimulus initiatives and funding also end in the first quarter<br />

of 2011. Major projects planned in 2011 include the implementation of new enterprise<br />

systems, the first year on new public sector accounting board standards and compliance<br />

with new quarterly public financial reporting requirements. Also, the CTC will enter collective<br />

bargaining in 2011 as the collective agreement expires in June 2011.<br />

Changes in accounting framework<br />

In February 2008, <strong>Canada</strong>’s Accounting Standards Board confirmed that <strong>Canadian</strong><br />

generally accepted accounting principles be superseded by International Financial<br />

<strong>Report</strong>ing Standards (IFRS) for fiscal years beginning or after January 1, 2011. As a result<br />

of a decision of the Public Sector Accounting Board (PSAB), it was decided that the<br />

<strong>Commission</strong> would also be required to adopt IFRS. However, in September 2009, the<br />

PSAB approved amendments to the Introduction to the Public Sector Handbook,<br />

under which the category for government business-type enterprises, which included the<br />

<strong>Commission</strong>, was eliminated.<br />

The handbook identified three categories of organizations: government business<br />

enterprises, government not-for-profit organizations and other government organizations.<br />

While government business enterprises that are independent commercial agencies must<br />

adhere to IFRS, other government organizations were given the option to select the<br />

accounting standard that best suited their needs and objectives. After an analysis of the<br />

various factors provided by the PSAB to guide that decision, the <strong>Commission</strong> concluded<br />

that public sector accounting standards best satisfied the needs of the <strong>Commission</strong> and<br />

the users of its financial statements. The <strong>Commission</strong> will adopt these standards on<br />

January 1, 2011.<br />

The <strong>Commission</strong> has identified the following differences in accounting policies:<br />

Employee future benefits<br />

Under the current CICA framework, the <strong>Commission</strong> is able to elect the “corridor method”<br />

for amortizing gains and losses. Therefore, any gains or losses less than 10% of the plan<br />

assets or obligations are not amortized. This method provides for less volatility in the<br />

income statement as the first 10% of gains/losses are deferred until eliminated or the<br />

quantum exceeds 10%. The PSAB framework does not have a corridor election, so all<br />

gains or losses are amortized.<br />

Under PSAB, the discount rate for calculating the employee future benefit obligations is<br />

based on short term forecasts of rates of return on assets held or cost of borrowing. The<br />

CICA framework requires that market interest rates on high quality debt instruments with<br />

matching cash flows be utilized. As the short term rates are typically more volatile, this<br />

could result in additional volatility to the obligation.<br />

Under the PSAB framework, any plan amendments are recognized immediately, while<br />

CICA allows the amendments to be amortized over the remaining service lives of the<br />

employees. In the event there are amendments to the plan, which often occurs as a result<br />

of the collective bargaining process, such amendments would have an immediate impact<br />

to the results of operations.<br />

Financial instruments<br />

Under the CICA Handbook, Financial instruments are categorized and measured at their<br />

fair value or amortized cost, depending on their categorization. Unrealized gains and<br />

losses on valuation adjustments are recorded in the income statement, except Available<br />

for Sale instruments, where certain valuation adjustments are recorded directly to equity.<br />

The PSAB standards do not have the concept of Other Comprehensive Income, therefore,<br />

entities that have designated their instruments as “Available for Sale” would have to<br />

record any fair value adjustments in the statement of operations, instead of through<br />

equity, which is the current practice.<br />

PSAB is currently working on a project on Financial Instruments, as it does not have<br />

specific financial instrument standards. As of June <strong>2010</strong>, PSAB reviewed responses to<br />

the previously issued Exposure Draft (ED). A Re-exposure Draft includes a presentation<br />

model that would report re-measurement gains and losses outside of the statement of<br />

operations. Responses were due January 17, 2011 with the new standards anticipated to<br />

be finalized in March 2011.<br />

Intangible assets<br />

Under PSAB, there is no concept of intangible assets. Therefore all intangibles, including<br />

those that have been purchased, developed, constructed or inherited in right of the Crown,<br />

are not recognized as assets in government financial statements.<br />

Parliamentary appropriations<br />

Under the current CICA framework, parliamentary appropriations are used to fund<br />

operations and are recognized as income in the year in which the related expenses are<br />

incurred. The <strong>Commission</strong> will have a deferred parliamentary appropriations balance at<br />

year-end when the appropriations received exceed expenses incurred and the <strong>Commission</strong><br />

will have a parliamentary appropriations receivable balance at year-end when the expenses<br />

incurred exceed appropriations received. Appropriations used for acquiring capital assets<br />

are recorded as deferred capital funding on the balance sheet and amortized on the same<br />

basis and over the same period as the related capital assets.<br />

Under PSAB, parliamentary appropriations are recognized over the service period when<br />

the following criteria have been met: (a) the transfer is authorized, (b) eligibility criteria, if<br />

any, have been met by the recipient; and (c) a reasonable estimate of the amount can<br />

be made. The service period for appropriations is from April 1 to March 31 based on the<br />

funding and fiscal year end of the Government of <strong>Canada</strong>. As the <strong>Commission</strong> has a<br />

December 31 fiscal year end, funding relating to the January 1 to March 31 service period<br />

will be deferred.<br />

Financial statement presentation<br />

• Required statements:<br />

- Statement of Financial Position<br />

- Statement of Operations<br />

- Statement of Changes in Net Financial Assets (Debt)<br />

- Statement of Cash Flows<br />

• Budgets figures are required to be presented<br />

• Expanded capital asset disclosures, which require a continuity schedule<br />

• Segmented information disclosures required by function and object<br />

Identification and resolution of key information technology requirements<br />

The <strong>Commission</strong> has performed an analysis of its data system infrastructure and has<br />

concluded that transition to PSAB will not result in a material modification to any of its<br />

financial systems.<br />

Internal control over financial reporting<br />

PSAB will also affect internal controls over financial reporting. Management does not<br />

currently expect such changes to be significant.<br />

Training and communication requirements<br />

The <strong>Commission</strong> has undertaken the development of a communication plan to inform<br />

external stakeholders and key internal staff of the relevant modifications to the accounting<br />

and reporting of financial results ensuing from the transition to PSAB. Training seminars<br />

on relevant PSAB standards and their potential impact have been provided and will<br />

continue for key personnel.<br />

Standards on quarterly financial reports for Crown<br />

corporations<br />

Amendments to the Financial Administration Act will require the <strong>Commission</strong>, as a Crown<br />

corporation, to prepare and make public quarterly financial reports in accordance with<br />

the Standard on Quarterly Financial <strong>Report</strong>s for Crown Corporations. The standard takes<br />

effect on April 1, 2011. The quarterly report will consist of unaudited financial statements<br />

and a narrative discussion outlining financial results; risks; and significant changes in<br />

operations, personnel and programs. The financial statements will present the current<br />

fiscal quarter and the current fiscal year-to-date, as well as provide comparative information<br />

for the preceding fiscal year.<br />

The <strong>Commission</strong> has prepared for the implementation of the standard in 2011, by capturing<br />

comparative financial information for <strong>2010</strong> and making changes to its reporting regime<br />

and internal schedules.<br />

Enterprise risk management<br />

As part of its strategic management process, the CTC conducts an annual enterprise risk<br />

assessment and uses the results of that assessment in the development of its five-year<br />

strategic plan and risk mitigation strategy. An external risk assessment is conducted once<br />

every two years, with management updating the risk assessment for each intervening<br />

year. External risk assessments were performed in 2008 and <strong>2010</strong>, identifying a number<br />

of specific risks. The table below compares results of the enterprise risk assessments<br />

performed by the external consultant in <strong>2010</strong> and 2008. Management has developed and<br />

implemented action plans to reduce the impact and/or likelihood of the risk occurring and<br />

assigned risk owners accountable for managing the risks.<br />

Risk (Residual)<br />

Government Funding – Core<br />

Decrease in core government funding<br />

affects program activities<br />

Management Development<br />

Enhancement of leadership and<br />

management skills for mid-management<br />

personnel<br />

Shareholder Engagement<br />

Alignment of priorities<br />

<strong>Tourism</strong> Industry<br />

Vulnerability within the tourism industry<br />

Fixed Costs<br />

Increasing compliance costs and other<br />

costs as a result of being a Crown<br />

corporation<br />

Organization Complexity<br />

Operations in 12 markets<br />

Transition<br />

The new business model<br />

Technology Effectiveness<br />

The ability to leverage IT capability to<br />

effectively conduct internal processes<br />

Marketing Effectiveness<br />

Ability to execute marketing strategy<br />

Government Funding – Special Projects<br />

Special Project funding with increased<br />

reporting requirements<br />

Rating<br />

Change Mitigation Activities<br />

N/C<br />

á<br />

â<br />

--- New<br />

Risk<br />

---<br />

New<br />

Focus on restructuring the organization and streamlining operations to cut costs<br />

and increase efficiency; focus on organizational excellence and maintain its<br />

corporate reputation; demonstrate alignment of tourism to government priorities<br />

(i.e. revenues generated from tourism).<br />

Continued implementation of training for key members identified in succession<br />

plan; continue balanced scorecard approach to align people with strategy<br />

Enhance communication and Government relations; ensure the alignment of<br />

Government priorities against the CTC mandate.<br />

Support development and implementation of federal tourism strategy to<br />

collaborate across government more strategically; continue to communicate<br />

tourism’s contribution to the economy.<br />

Continue to identify efficiencies and reduce organizational complexity, resulting in<br />

lessened overhead costs.<br />

A continued effort and focus to minimize the complexity of the organization<br />

and streamline operations in order to increase operational efficiency. Engage in<br />

effective global marketing approach using local agents (GSAs).<br />

Ensure that transition plans are developed and communicated, and training is<br />

provided as required.<br />

Continue with Information Technology (IT) Governance Committee that is in place<br />

to review information systems needs; planning is well underway for a new IT<br />

system (process maps, business requirements)<br />

Alignment of brand to ensure coherent marketing messages; work together with<br />

partners and agencies to align investment and branding efforts.<br />

Demonstrate alignment of tourism to government priorities (i.e. revenues generated<br />

from tourism); ensure that the CTC is capable of easily meeting new reporting<br />

requirements that come with special funding.<br />

Medium-high<br />

risks<br />

Medium risks<br />

Low risk<br />

No change<br />

Increase from previous year<br />

Decrease from previous year<br />

Internal audit<br />

The CTC engages an external firm to carry out its Internal Audit function. The Internal<br />

Auditors act independently and report directly to the Audit Committee of the Board of<br />

Directors. The development of the CTC’s annual internal audit program is risk-based<br />

and incorporates the results of the annual enterprise risk assessment and input from the<br />

Board of Directors and key management personnel. In <strong>2010</strong>, the CTC underwent two<br />

internal audits in the following areas:<br />

• Olympic Games Performance Management and Accountability Review – Round 2; and<br />

• Procurement (in progress).<br />

Management has developed targeted action plans to address the internal audit<br />

recommendations. The action plans are in varying stages of implementation based on<br />

the level of assigned risk and priority.<br />

Special examination<br />

Budget Implementation Act 2009 amended Part X of the Financial Administration Act,<br />

whereby extending the frequency of Special Examinations from every five to 10 years.<br />

The next Special Examination for the CTC is due in 2016.<br />

Financial statements<br />

Management responsibility statement<br />

The management of the <strong>Commission</strong> is responsible for the performance of the duties delegated to it<br />

by the Board of Directors. These include the preparation of an <strong>Annual</strong> <strong>Report</strong> together with audited<br />

financial statements. These statements, approved by the Board of Directors, were prepared in<br />

accordance with <strong>Canadian</strong> generally accepted accounting principles appropriate in the circumstances.<br />

Other financial and operational information appearing elsewhere in the <strong>Annual</strong> <strong>Report</strong> is consistent<br />

with that contained in the financial statements.<br />

Management maintains internal accounting control systems designed to provide reasonable assurance<br />

that relevant and reliable financial information is produced and that transactions comply with the<br />

relevant authorities.<br />

Management also maintains financial and management control systems and practices designed to<br />

ensure the transactions are in accordance with Part X of the Financial Administration Act and regulations,<br />

the <strong>Canadian</strong> <strong>Tourism</strong> <strong>Commission</strong> Act, and by-laws of the <strong>Commission</strong>. These systems and<br />

practices are also designed to ensure that assets are safeguarded and controlled, and that the<br />

operations of the <strong>Commission</strong> are carried out effectively. In addition, the Audit Committee, appointed<br />

by the Board of Directors, oversees the internal audit activities of the <strong>Commission</strong> and performs other<br />

such functions as are assigned to it.<br />

The <strong>Commission</strong>’s external auditor, the Auditor General of <strong>Canada</strong>, is responsible for auditing the<br />

financial statements and for issuing her report thereon.<br />

and Chief Executive Officer<br />

Vice-President, Finance<br />

and Chief Financial Officer<br />

Independent Auditor’s <strong>Report</strong><br />

To the Minister of Industry<br />

<strong>Report</strong> on the Financial Statements<br />

I have audited the accompanying financial statements of the <strong>Canadian</strong> <strong>Tourism</strong> <strong>Commission</strong>, which comprise the balance sheet as at<br />

31 December <strong>2010</strong>, and the statement of operations, comprehensive income and accumulated surplus and statement of cash flows for<br />

the year then ended, and a summary of significant accounting policies and other explanatory information.<br />

Management’s Responsibility for the Financial Statements<br />

Management is responsible for the preparation and fair presentation of these financial statements in accordance with <strong>Canadian</strong> generally<br />

accepted accounting principles, and for such internal control as management determines is necessary to enable the preparation of<br />

financial statements that are free from material misstatement, whether due to fraud or error.<br />

Auditor’s Responsibility<br />

My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with<br />

<strong>Canadian</strong> generally accepted auditing standards. Those standards require that I comply with ethical requirements and plan and perform<br />

the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.<br />

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The<br />

procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial<br />

statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s<br />

preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances,<br />

but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the<br />

appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating<br />

the overall presentation of the financial statements.<br />

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.<br />

Opinion<br />

In my opinion, the financial statements present fairly, in all material respects, the financial position of the <strong>Canadian</strong> <strong>Tourism</strong> <strong>Commission</strong><br />

as at 31 December <strong>2010</strong>, and the results of its operations and its cash flows for the year then ended in accordance with <strong>Canadian</strong><br />

generally accepted accounting principles.<br />

<strong>Report</strong> on Other Legal and Regulatory Requirements<br />

As required by the Financial Administration Act, I report that, in my opinion, <strong>Canadian</strong> generally accepted accounting principles have<br />

been applied on a basis consistent with that of the preceding year.<br />

Further, in my opinion, the transactions of the <strong>Canadian</strong> <strong>Tourism</strong> <strong>Commission</strong> that have come to my notice during my audit of the financial<br />

statements have, in all significant respects, been in accordance with Part X of the Financial Administration Act and regulations, the <strong>Canadian</strong><br />

<strong>Tourism</strong> <strong>Commission</strong> Act and the by-laws of the <strong>Canadian</strong> <strong>Tourism</strong> <strong>Commission</strong>.<br />

Terrance DeJong, CA<br />

Assistant Auditor General for the Auditor General of <strong>Canada</strong><br />

24 March 2011<br />

Vancouver, <strong>Canada</strong><br />

Balance sheet<br />

As at December 31<br />

(in thousands)<br />

<strong>2010</strong> 2009<br />

Assets<br />

Current Assets<br />

Cash (Note 4) $ 12,357 $ 21,790<br />

Accounts receivable<br />

Partnership contributions 2,563 2,288<br />

Government of <strong>Canada</strong> 904 912<br />

Other 889 592<br />

Parliamentary appropriations receivable (Note 8) 5,233 –<br />

Prepaid expenses and other assets 1,486 3,002<br />

23,432 28,584<br />

Non-current Assets<br />

Property and equipment (Note 5) 2,194 2,758<br />

Intangible assets (Note 6) 1,364 2,556<br />

Accrued benefit asset (Note 7) 4,907 4,256<br />

8,465 9,570<br />

$ 31,897 $ 38,154<br />

Liabilities<br />

Current Liabilities<br />

Accounts payable and accrued liabilities (Note 4)<br />

Trade $ 15,645 $ 10,400<br />

Employee compensation 3,672 1,996<br />

Government of <strong>Canada</strong> 454 36<br />

Deferred parliamentary appropriations (Note 8) – 11,742<br />

Deferred revenue 939 1,685<br />

Asset Retirement Obligation 839 843<br />

21,549 26,702<br />

Non-current Liabilities<br />

Deferred capital funding (Note 9) 3,629 5,384<br />

Accrued benefit liability (Note 7) 5,236 5,121<br />

8,865 10,505<br />

Accumulated surplus (Note 10) 1,483 947<br />

Commitments and Contingencies (Notes 15 & 17).<br />

The accompanying notes form an integral part of these financial statements.<br />

Approved on behalf of the Board of Directors<br />

Alexander Reford<br />

Statement of operations, comprehensive<br />

income & accumulated surplus<br />

For the year ended December 31<br />

Revenue<br />

Partnership contributions $ 16,286 $ 14,973<br />

Other 404 557<br />

16,690 15,530<br />

Expenses<br />

Marketing and sales (Note 11) 105,502 96,422<br />

Corporate services 15,640 12,814<br />

Strategy and planning 1,295 1,259<br />

Amortization of property and equipment 1,065 1,291<br />

Amortization of intangible assets 1,253 1,334<br />

124,755 113,120<br />

Net cost of operations before funding from the Government<br />

of <strong>Canada</strong> (108,065) (97,590)<br />

Parliamentary appropriations (Note 8) 106,283 96,588<br />

Amortization of deferred capital funding (Note 9) 2,318 2,625<br />

108,601 99,213<br />

Net results of operations and comprehensive income for the year 536 1,623<br />

Accumulated surplus/(deficit), beginning of year 947 (676)<br />

Accumulated surplus, end of year $ 1,483 $ 947<br />

Statement of cash flows<br />

(in thousands) <strong>2010</strong> 2009<br />

Operating activities:<br />

Cash paid to employees and suppliers $ (114,452) $ (118,993)<br />

Parliamentary appropriations used to fund operating activities 89,309 102,475<br />

Cash receipts from partners 15,324 14,830<br />

Other income received 404 557<br />

Cash flows used in operating activities (9,415) (1,131)<br />

Investing activities:<br />

Acquisition of property and equipment (502) (1,453)<br />

Acquisition of intangible assets (61) (1,885)<br />

Cash flows used in investing activities (563) (3,338)<br />

Financing activities:<br />

Parliamentary appropriations used for the acquisition of<br />

property, equipment and intangible assets (Note 8) 563 3,338<br />

Cash flows provided by financing activities 563 3,338<br />

Foreign exchange loss on cash held in foreign currency (18) (247)<br />

Net decrease in cash during the year (9,433) (1,378)<br />

Cash, beginning of year 21,790 23,168<br />

Cash, end of year $ 12,357 $ 21,790<br />

Notes to audited financial statements<br />

December 31, <strong>2010</strong><br />

1. Authority and objectives<br />

The <strong>Canadian</strong> <strong>Tourism</strong> <strong>Commission</strong> (the <strong>Commission</strong>) was established on January 2, 2001 under<br />

the <strong>Canadian</strong> <strong>Tourism</strong> <strong>Commission</strong> Act (the Act) and is a Crown corporation named in Part I of<br />

Schedule III to the Financial Administration Act. The <strong>Commission</strong> is for all purposes an agent of her<br />

Majesty in right of <strong>Canada</strong>. As a result, all obligations of the <strong>Commission</strong> are obligations of <strong>Canada</strong>.<br />

The <strong>Commission</strong> is not subject to income taxes.<br />

As stated in section 5 of the Act, the <strong>Commission</strong>’s mandate is to:<br />

• sustain a vibrant and profitable <strong>Canadian</strong> tourism industry;<br />

• market <strong>Canada</strong> as a desirable tourist destination;<br />

• support a cooperative relationship between the private sector and the governments of <strong>Canada</strong>, the<br />

provinces and the territories with respect to <strong>Canadian</strong> tourism; and<br />

• provide information about <strong>Canadian</strong> tourism to the private sector and the governments of <strong>Canada</strong>,<br />

the provinces and the territories.<br />

2. Significant accounting policies<br />

These financial statements are prepared in accordance with <strong>Canadian</strong> Generally Accepted Accounting<br />

Principles. A summary of significant policies follows.<br />

a) Parliamentary appropriations<br />

The <strong>Commission</strong> is mainly financed by the Government of <strong>Canada</strong> through parliamentary appropriations.<br />

Parliamentary appropriations used to fund operations are mainly recognized as income in the year in<br />

which the related expenses are incurred. One exception to this accounting treatment is the <strong>Commission</strong><br />

records as a revenue or expense each year the annual change in its accrued benefit liability or asset.<br />

As this change is a non-cash item, no offsetting expense or revenue is recognized in the accounts. As<br />

a result, the <strong>Commission</strong> records a surplus or deficit each year that arises from the annual change in<br />

its accrued benefit liability or asset. The accrued benefit asset or liability includes both pension and<br />

non-pension benefits. The <strong>Commission</strong> will have a deferred parliamentary appropriations balance at<br />

year-end when the appropriations received exceed expenses incurred. On the other hand, the<br />

<strong>Commission</strong> will have a parliamentary appropriations receivable balance when expenses incurred<br />

exceed parliamentary appropriations received. Deferred or receivable appropriation balances reflect<br />

timing differences between realized expenditures and cash appropriation receipts. The <strong>Commission</strong><br />

does not have the authority to exceed approved appropriations.<br />

Appropriations used for acquiring property, equipment and intangible assets are recorded as deferred<br />

capital funding on the balance sheet and amortized on the same basis and over the same period as<br />

the related assets. Upon disposition of funded property and equipment, the <strong>Commission</strong> recognizes<br />

in income all remaining deferred capital funding related to those assets.<br />

As a result of the <strong>Commission</strong>’s year-end date (December 31) being different than the Government of<br />

<strong>Canada</strong>’s year end date (March 31), the <strong>Commission</strong> is funded by portions of appropriations from two<br />

Government fiscal years.<br />

Notes to the audited financial statements<br />

b) Partnership contributions<br />

The <strong>Commission</strong> conducts marketing activities in partnership with a variety of <strong>Canadian</strong> and foreign<br />

organizations. Where the <strong>Commission</strong> assumes the financial risks of conducting a marketing activity,<br />

contributions received from a partnering organization are recognized in income when the related<br />

marketing activity takes place. Partnership contributions received for which the related marketing<br />

activity has not yet taken place are recognized as deferred revenue in the balance sheet.<br />

Other revenues consist of interest and other miscellaneous revenues.<br />

d) Foreign currency translation<br />

Monetary assets and monetary liabilities denominated in foreign currencies are translated into <strong>Canadian</strong><br />

dollars at the applicable year-end exchange rate. Non monetary assets and non monetary liabilities<br />

denominated in foreign currencies were translated into <strong>Canadian</strong> dollars at historical exchange rates.<br />

Revenue and expense items are translated during the year at the exchange rate in effect on the date<br />

of the transaction. Amortization expense of property, equipment and intangible assets are translated<br />

at historical rates to which the assets relate. Translation gains and losses are reported in expenses<br />

for the year under “Corporate services”. The <strong>Commission</strong> does not hedge against the risk of foreign<br />

currency fluctuations.<br />

e) Prepaid expenses<br />

Prepaid expenses consists of program and operating expenses recognized into income based on the<br />

term of usage for items such as subscriptions or based on the event date of tradeshows.<br />

f) Property and equipment<br />

Property and equipment are recorded at cost less accumulated amortization and the amount of any<br />

write-downs or disposals. Property and equipment are amortized on a straight-line basis over the<br />

estimated useful life of the assets (with the half-year rule applied on new additions) as follows:<br />

Office furniture<br />

Computer hardware<br />

Remaining term of lease<br />

5 years<br />

3 years<br />

g) Intangible assets<br />

Intangible assets acquired or developed during the period are recorded at cost less accumulated<br />

amortization and the amount of any write-downs or disposals. Intangible assets are amortized on a<br />

straight-line basis over the estimated useful life of the assets (with the half-year rule applied on new<br />

additions) as follows:<br />

Computer software<br />

Website<br />

h) Deferred revenue<br />

Deferred revenue consists of deferred revenues from partnering organizations and deferred leasehold<br />

improvements. The deferred revenues relating to partnering organizations are recognized as revenues<br />

based on the event’s date. The deferred revenues relating to deferred leasehold improvements are<br />

recognized as revenue over the term of the lease.<br />

i) Asset Retirement Obligation<br />

Asset retirement obligation consists of decommissioning costs for various office leases.<br />

j) Employee future benefits<br />

The <strong>Commission</strong> offers a number of funded and unfunded defined benefit pension plans, other<br />

unfunded defined benefit plans (which include post-employment benefits and post-retirement<br />

benefits), as well as defined contribution pension plans that provide pension and other benefits to<br />

qualifying employees. The pension plans include statutory plans and a supplemental plan. Other<br />

benefit plans include post-employment severance benefits and post-retirement health, dental and life<br />

insurance benefits. The defined benefit pension plans provide benefits based on years of service and<br />

average pensionable earnings at retirement. The <strong>Commission</strong> funds certain pension plans annually<br />

based on actuarially determined amounts needed to satisfy employee future benefit entitlements<br />

under current benefit regulations. Cost of living adjustments are automatically provided for retirees in<br />

accordance with Consumer Price Index increases.<br />

The costs and obligations of the defined benefit plans are actuarially determined using the projected<br />

benefit method prorated on service that incorporates management’s best estimates of the rate of<br />

employee turnover, the average retirement age, the average cost of claims per person, future salary<br />

and benefit levels, expected return on plan assets, future medical costs, and other actuarial factors.<br />

For the purposes of calculating the expected return on plan assets, those assets are valued at fair value.<br />

Past service costs arising from plan amendments are deferred and amortized at the date of the plan<br />

amendment on a straight-line basis over the expected average remaining service lifetime (EARSL) to<br />

full eligibility of active employees, which for <strong>2010</strong> has been determined to be 13 years (14 years in<br />

2009) for the Supplementary Retirement Plan (SRP), 14 years (15 years in 2009) for the Registered<br />

Retirement Plan (RPP) and 6 years (7 years in 2009) for non-pension post-retirement benefits.<br />

The excess of the net accumulated actuarial gain/(loss) over 10% of the greater of the benefit obligation<br />

and the fair value of plan assets is amortized over the EARSL of active employees. For <strong>2010</strong>, this<br />

EARSL has been determined to be 11.5 years (15.9 years in 2009) for the RPP, 12 years (15 years in<br />

2009) for the SRP, 16.4 years (16.4 years in 2009) for the Pension Plan for Employees of the <strong>Canadian</strong><br />

<strong>Tourism</strong> <strong>Commission</strong> in Germany, Japan, South Korea and China, 18 years (18 years in 2009) for<br />

non-pension post-retirement benefits, and 9 years (9 years in 2009) for severance benefits.<br />

In the case where the benefit plans are impacted by both a curtailment and a settlement, the curtailment<br />

is taken into consideration first in calculating the accrued benefit obligations of the plans.<br />

Employees working in the United Kingdom and the United States participate in the Department of<br />

Foreign Affairs defined benefit pension plans administered by the Government of <strong>Canada</strong>. The assets<br />

of these plans cannot be allocated among participating employers, and as such, these plans are<br />

deemed “multi-employer” plans and accounted for as defined contribution plans. The <strong>Commission</strong>’s<br />

contributions to these plans reflect the full benefit cost of the employer. These amounts vary depending<br />

upon the plan and are based on a percentage of the employee’s gross earnings. Contributions may<br />

change over time depending on the experience of the plans since the <strong>Commission</strong> is required under<br />

present legislation to make adjustments for the rate of contributions to cover any actuarial deficiencies<br />

of these plans. Contributions represent the total pension obligations of the <strong>Commission</strong> for these<br />

employees and are charged to operations during the year in which the services are rendered.<br />

k) Measurement uncertainty<br />

The preparation of financial statements in accordance with <strong>Canadian</strong> Generally Accepted Accounting<br />

Principles requires management to make estimates and assumptions that affect the reported amounts<br />

of assets and liabilities at the date of the financial statements and the amounts of income and<br />

expense during the reporting periods. Actual results could differ significantly from those estimates.<br />

The most significant estimates involve the determination of employee future benefits, the useful lives<br />

for amortization of property, equipment and intangible assets, fair value asset retirement obligation<br />

and the fair value of financial instruments. Management estimates that amortized cost, based on the<br />

effective interest method, is a reasonable indicator of fair value. As such, the carrying amounts of<br />

accounts receivable and accounts payable and accrued liabilities are considered by management to<br />

approximate their fair values because of their short term to maturity.<br />

l) Financial instruments<br />

The <strong>Commission</strong>’s financial instruments consist of cash held in general bank accounts, accounts<br />

receivable and accounts payable and accrued liabilities, all of which are incurred in the normal course<br />

of business.<br />

Financial instruments are classified into one of the following classifications: held-for-trading, held to<br />

maturity, loans and receivables, available-for-sale or other financial liabilities.<br />

All financial instruments are measured at fair value on initial recognition of the instrument, except for<br />

certain related party transactions. Subsequent measurement and the accounting for the changes in<br />

fair value depend on their initial classification. The <strong>Commission</strong> classifies its cash held in a general<br />

bank account as “held-for-trading” which is measured at fair value, and its accounts receivable as<br />

“loans and receivables” and accounts payable and accrued liabilities as “other financial liabilities”,<br />

which are both measured at amortized cost.<br />

m) Capital Management<br />

The <strong>Commission</strong> is a Crown corporation which is mainly financed by the Government of <strong>Canada</strong><br />

through parliamentary appropriations. The <strong>Commission</strong> is subject to financial management and<br />

accountability provisions of the Financial Administration Act, which imposes restrictions in relation to<br />

borrowing, acquisition of securities, issuing guarantees and indemnities and the use of derivatives.<br />

The <strong>Commission</strong> did not have any externally imposed capital requirements during <strong>2010</strong>.<br />

The <strong>Commission</strong>’s capital is its equity, which comprises accumulated funds and other reserves. As<br />

a result, the <strong>Commission</strong> does not maintain a capital account on its balance sheet. The <strong>Commission</strong><br />

currently has an accumulated surplus balance as an indicator of the <strong>Commission</strong>’s equity position.<br />

This represents a balance that is expected to reverse in future periods.<br />

The <strong>Commission</strong> manages its equity as a by-product of prudently managing its revenues, expenses,<br />

assets, liabilities and general financial dealings to ensure the <strong>Commission</strong> effectively achieves its<br />

objective and purpose.<br />

There has been no change during the year in the <strong>Commission</strong>’s objectives, policies and processes for<br />

managing capital.<br />

3. Future accounting changes<br />

In September 2009, the CICA’s Public Sector Accounting Board (PSAB) approved an amendment<br />

to the Introduction to the Public Sector Accounting (PSA) Handbook together with consequential<br />

amendments to other sections of the PSA Handbook. The amendment confirms the direction<br />

previously provided to government business enterprises as self-sustaining commercial organizations<br />

to adhere to the standards for publicly accountable enterprises in the private sector (i.e. International<br />

Financial <strong>Report</strong>ing Standards (IFRS)) and eliminates the category “government business-type<br />

organizations” resulting in re-categorization as either government not-for-profit organizations or other<br />

government organizations (OGOs). Effectively, OGOs have a choice between adopting IFRS or Public<br />

Sector Accounting Standards (PSAS) and must determine the most appropriate source of GAAP<br />

based on their needs and objectives in selecting between IFRS and PSAS.<br />

In 2009, the <strong>Commission</strong> prepared an analysis which concludes that it meets the OGO criteria as<br />

defined in the revised Introduction to the PSA Handbook and intends to change its basis of accounting<br />

to Public Sector Accounting Standards. OGOs adopting the standards issued by the Public Sector<br />

Accounting Board must do so no later than for fiscal periods beginning on or after January 1, 2011.<br />

The <strong>Commission</strong> has undertaken a project to ensure compliance with Public Sector Accounting<br />

Standards by the adoption date. The <strong>Commission</strong>’s PSAS project plan is comprised of three stages:<br />

detailed diagnostic, assessment and implementation. During <strong>2010</strong>, the <strong>Commission</strong> continued to<br />

assess the impact the adoption of the new standards will have on the <strong>Commission</strong>’s financial reporting.<br />

4. Financial instruments<br />

Credit risk<br />

Credit risk is the risk of financial loss to the <strong>Commission</strong> if a partner or other party fails to meet its<br />

contractual obligations. The <strong>Commission</strong>, in the normal course of business, is exposed to credit risk<br />

on its accounts receivable. The <strong>Commission</strong> generally grants 30 day credit terms to its partners and<br />

other specific terms for its other accounts receivable.<br />

Accounts receivable are presented net of applicable allowance for doubtful accounts, which is<br />

established based on the specific credit risk associated with the partner based on management’s<br />

judgment and prior experience working with the partner. Allowances for doubtful accounts totaled<br />

$67,327 as at December 31, <strong>2010</strong> ($16,500 as at December 31, 2009).<br />

The <strong>Commission</strong>’s maximum exposure to credit risk at December 31, <strong>2010</strong> was $2,687,000<br />

($2,795,100 as at December 31, 2009).<br />

The aging of accounts receivable as at December 31, <strong>2010</strong> was as follows:<br />

Government<br />

Partnership<br />

Contributions Other Total<br />

Within terms $ 86 $ 547 $ 39 $ 672<br />

Beyond terms – 2,016 – 2,016<br />

$ 86 $ 2,563 $ 39 $ 2,687<br />

Within terms are items within 30 days. Items beyond 30 days are disclosed as beyond terms.<br />

Excluded from above is $1.67 million in taxes receivable which are not financial instruments.<br />

Liquidity risk<br />

Liquidity risk is the risk that the <strong>Commission</strong> will not be able to meet its financial obligations as they<br />

fall due. The <strong>Commission</strong>’s approach to managing its liquidity risk is to ensure, as far as possible, that<br />

it will always have sufficient cash balances to meet liabilities when they come due. To achieve this, the<br />

<strong>Commission</strong> actively monitors, forecasts and manages its cash flows, including its parliamentary<br />

appropriations.<br />

The aging of non-derivative financial liabilities as at December 31, <strong>2010</strong> was as follows:<br />

(in thousands) < 30 Days 31-60 Days > 61 Days Total<br />

Accounts Payable - Trade $ 12,568 $ 1,674 $ 1,403 $ 15,645<br />

Employee Compensation 3,672 – – 3,672<br />

Government of <strong>Canada</strong> 454 – – 454<br />

$ 16,694 $ 1,674 $ 1,403 $ 19,771<br />

Currency risk<br />

The <strong>Commission</strong> is exposed to currency risk as a significant portion of its revenue and expenses are<br />

earned or incurred, and subsequently received or paid in currencies other than <strong>Canadian</strong> dollars.<br />

Currency risk arises due to fluctuations in foreign exchange rates, which could affect the <strong>Commission</strong>’s<br />

financial results. The <strong>Commission</strong> does not hedge against fluctuations in foreign exchange rates and<br />

accepts the operational and financial risks associated with any such fluctuations.<br />

The undernoted accounts are comprised of the following currencies as at December 31, <strong>2010</strong>:<br />

Currency<br />

units<br />

Cash<br />

<strong>Canadian</strong><br />

equivalent<br />

Accounts<br />

receivable<br />

Accounts payable<br />

and accrued liabilities<br />

Australian Dollars 196 $ 199 63 $ 64 649 $ 659<br />

<strong>Canadian</strong> Dollars 9,710 9,710 2,256 2,256 9,912 9,910<br />

Chinese Yuan 502 76 – – 2,587 391<br />

Euros 676 896 13 17 1,503 1,992<br />

Great Britain Pounds 119 184 57 88 878 1,358<br />

Japanese Yen 37,790 464 – – 24,545 301<br />

Mexican Pesos 341 28 17 2 2,313 187<br />

South Korean Won 22,774 20 12,800 11 142,643 126<br />

United States Dollars 780 780 249 249 4,847 4,847<br />

Total <strong>Canadian</strong><br />

equivalent $ 12,357 $ 2,687 $ 19,771<br />

Comprised of:<br />

Trade and partnership $ – $ 2,648 $ 16,099<br />

Other – 39 –<br />

Employee<br />

compensation – – 3,672<br />

Total $ 12,357 $ 2,687 $ 19,771<br />

At December 31, <strong>2010</strong>, if the above foreign currencies had strengthened (or weakened) by 10 percent<br />

against the <strong>Canadian</strong> dollar, with all other variables held constant, the net cost of operations would<br />

have increased by approximately $678,311 ($274,000 in 2009). However, the net results of operations<br />

and comprehensive income would remain unchanged and parliamentary appropriations receivable on<br />

the balance sheet would have increased by $678,311 (deferred parliamentary appropriations on the<br />

balance sheet would have decreased by $274,000 in 2009).<br />

Interest rate risk<br />

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate<br />

due to changes in market interest rates. As at December 31, <strong>2010</strong>, the <strong>Commission</strong> is not exposed<br />

to significant interest rate risk.<br />

Fair value<br />

As at December 31, <strong>2010</strong>, the carrying amounts of cash, accounts receivable and accounts payable<br />

and accrued liabilities are considered by management to approximate their fair values because of<br />

their short term to maturity.<br />

5. Property and equipment<br />

Accumulated<br />

Amortization<br />

Net Book Value<br />

December 31, 2009<br />

Cost<br />

Leasehold improvements $ 4,901 $ 3,156 $ 1,745 $ 1,931<br />

Office furniture 1,646 1,524 122 299<br />

Computer hardware 2,165 1,838 327 528<br />

Total $ 8,712 $ 6,518 $ 2,194 $ 2,758<br />

The <strong>Commission</strong> recognized asset retirement obligations as a result of legal obligations to restore<br />

leased office spaces back to their original states at the end of the lease term. Asset retirement<br />

obligations are measured initially at fair value, based on management’s best estimates, with the resulting<br />

amount capitalized into the carrying amount of the related asset. The capitalized asset retirement<br />

cost is included in leasehold improvements and amortized on the same basis as the related asset.<br />

The amortization expense is included in determining the net cost of operations. The following table<br />

summarizes the changes in the capitalized asset retirement cost during the year ended December 31.<br />

Capitalized asset retirement cost, beginning of year $ 381 $ –<br />

Obligations incurred in the current period 67 843<br />

Amortization in the current period (143) (462)<br />

Capitalized asset retirement cost, end of year $ 305 $ 381<br />

There are no assets legally restricted for the purpose of settling asset retirement obligations.<br />

6. Intangible assets<br />

Computer software $ 3,198 $ 3,038 $ 160 $ 230<br />

Website 4,804 3,600 1,204 2,326<br />

Total $ 8,002 $ 6,638 $ 1,364 $ 2,556<br />

The <strong>Commission</strong> has not developed any intangible assets. All intangible assets in <strong>2010</strong> were acquired.<br />

7. Accrued benefit asset/liability<br />

The <strong>Commission</strong> offers a number of employee future benefit plans covering its employees in <strong>Canada</strong><br />

and abroad. The following table summarizes these plans and the benefits they provide:<br />

Employees<br />

Covered Name of the Plan Nature of the Plan Contributors<br />

<strong>Canada</strong><br />

China, Germany,<br />

Japan and South<br />

Korea<br />

United States<br />

All Employees<br />

Registered Pension Plan for the<br />

Employees of the <strong>Canadian</strong><br />

<strong>Tourism</strong> <strong>Commission</strong> –<br />

Defined Benefit component<br />

Registered Pension Plan for<br />

the Employees of the <strong>Canadian</strong><br />

<strong>Tourism</strong> <strong>Commission</strong> – Defined<br />

Contribution component<br />

Supplementary Retirement Plan for<br />

Certain Employees of the <strong>Canadian</strong><br />

<strong>Tourism</strong> <strong>Commission</strong><br />

Non-Pension Post-Retirement<br />

Benefit Plan for <strong>Canadian</strong><br />

Pension Plan for Employees of the<br />

CTC in China, Germany, Japan<br />

and South Korea<br />

Qualified Pension Plan for U.S.<br />

Citizen Employees Working in<br />

the U.S.<br />

<strong>Canadian</strong> Citizen Employees<br />

Working in the U.S.<br />

<strong>Canadian</strong> High <strong>Commission</strong><br />

Locally Engaged Staff Pension<br />

Scheme<br />

Superannuation Defined<br />

Contribution Pension Arrangement<br />

Severance Benefits for <strong>Canadian</strong><br />

and Locally Engaged Employees<br />

Funded, Defined<br />

Benefit Plan<br />

Combination<br />

of Defined<br />

Contribution Plan<br />

and Group RRSP<br />

Partly funded,<br />

Defined Benefit Plan<br />

Unfunded, Defined<br />

Funded Multiemployer<br />

Defined<br />

Defined Contribution<br />

Plan<br />

CTC and plan<br />

members<br />

CTC and the<br />

Government of<br />

CTC<br />

Accounting<br />

Treatment<br />

Defined Benefit<br />

Contribution<br />

Defined contribution plans<br />

The <strong>Commission</strong> established a defined contribution pension plan for non-unionized employees in<br />

<strong>Canada</strong>, hired on or after August 1, 2005. On January 30, 2007, the <strong>Canadian</strong> unionized employees<br />

of the <strong>Commission</strong> agreed to participate in the defined contribution plan effective March 8, 2007.<br />

This decision impacted unionized employees hired on or after August 1, 2005. For service prior to<br />

March 8, 2007, the impacted members had a one-time option to either retain their accrued defined<br />

benefit pension in the plan, or to transfer the commuted value of such accrued benefits to the defined<br />

contribution plan. The commuted value was paid out for the vested employees. The employee<br />

contributions, with interest, were paid out for the non-vested employees; the remaining portion of the<br />

commuted value will be paid out on their vesting dates. For the year ended December 31, <strong>2010</strong>, no<br />

transfers were made (no transfers were made in 2009) to cover the transfer deficiency.<br />

Employees in Australia participate in the superannuation defined contribution pension arrangement,<br />

to which the <strong>Commission</strong> is required to contribute.<br />

The total cost for the <strong>Commission</strong>’s defined contribution pension plans was $477,995 in <strong>2010</strong><br />

($474,811 in 2009).<br />

The <strong>Commission</strong> also participates in multi-employer defined benefit plans providing pension benefits to<br />

employees working in the United States and in the United Kingdom. These plans, to which contributions<br />

totaled $275,314 in <strong>2010</strong> ($277,521 in 2009), are accounted for as defined contribution plans.<br />

Defined benefit plans<br />

The <strong>Commission</strong> has a number of defined benefit plans in <strong>Canada</strong>, which provide post-retirement<br />

and post-employment benefits to its employees:<br />

Effective January 2, 2004, pension arrangements include a registered pension plan as well as a<br />

supplemental arrangement, which provides pension benefits in excess of statutory limits. The<br />

<strong>Commission</strong> provides pension benefits based on employees’ years of service and average earnings<br />

at the time of retirement. The registered pension plan is funded by contributions from the <strong>Commission</strong><br />

and from the members. In accordance with pension legislation, the <strong>Commission</strong> contributes amounts<br />

determined on an actuarial basis and has the ultimate responsibility for ensuring that the liabilities of<br />

the plan are adequately funded over time. The supplemental retirement plan liabilities arising on and<br />

after January 2, 2004 are funded on a pay-as-you-go basis.<br />

Post-retirement benefits include health, dental and life insurance benefits. The cost of these benefits<br />

is paid for by the <strong>Commission</strong> and the retirees.<br />

Abroad<br />

The <strong>Commission</strong> has a number of defined benefit plans for its locally engaged staff outside of <strong>Canada</strong>,<br />

which provide pension and severance benefits. The <strong>Commission</strong> provides retirement benefits based<br />

on employees’ years of service and average earnings at the time of retirement. In accordance with<br />

pension legislation, the <strong>Commission</strong> contributes amounts determined on an actuarial basis to the<br />

plan and has the ultimate responsibility for ensuring that the liabilities of the plan (as they pertain to its<br />

employees) are adequately funded over time. In China, Germany, Japan and South Korea, the plan is<br />

unfunded. The <strong>Commission</strong> is only responsible for the service accruing on and after January 2, 2001.<br />

All employees<br />

Severance benefits are provided for all current employees in <strong>Canada</strong>, China, Germany, Japan,<br />

South Korea, United States, United Kingdom and Australia. The cost of the benefits is fully paid by<br />

the <strong>Commission</strong>. These plans are unfunded.<br />

As a result of the restructuring in <strong>2010</strong>, several employees were terminated. The curtailment effect<br />

related to these terminations has been reflected in the accrued benefit obligation effective September<br />

30, <strong>2010</strong>.<br />

Measurement date and date of actuarial valuation:<br />

The most recent actuarial valuation of the <strong>Canadian</strong> registered defined benefit pension plan for<br />

funding purposes was at December 31, 2009, and the next required valuation will be as at<br />

December 31, <strong>2010</strong> which is currently expected to be completed in June 2011. The going concern<br />

financial position based on the most recent actuarial valuation showed a funding surplus of $190,600<br />

(deficit of $839,500 for 2009). The valuation also identified an average solvency ratio of 89.1%.<br />

Starting in <strong>2010</strong>, the solvency deficiency and resulting solvency special payments are now based on<br />

an average solvency ratio determined as a three year average of solvency ratios (current year plus<br />

the previous two). The average solvency ratio is calculated as the arithmetic average of the solvency<br />

ratios at the valuation date, the prior valuation date and the prior second valuation date adjusted as<br />

prescribed for special payments, contribution holidays, amendments and transfer of assets.<br />

Under normal circumstances, the <strong>Commission</strong> would be required to make special payments over<br />

the five years following the effective date of the valuation to eliminate any unfunded liability and any<br />

solvency shortfall. However, on June 12, 2009, the Federal Minister of Finance announced the<br />

coming into force of the new Solvency Funding Relief Regulations, 2009 (the Regulations). In <strong>2010</strong>,<br />

the <strong>Commission</strong> met the terms and conditions under the Regulations. As a result the <strong>Commission</strong><br />

can continue to amortize the solvency deficiency over 10 years in accordance with the Regulations.<br />

Under these regulations, minimum special payments for <strong>2010</strong> were calculated on the basis that the<br />

solvency deficiency continues to be amortized over 10 years, as permitted by the funding relief<br />

regulations. The minimum required payments in <strong>2010</strong> are $333,800, a reduction from $1.3 million in<br />

2009. Future special payments are estimated to be $333,804 annually for the next 9 years.<br />

The Regulations amending certain regulations made under the Pension Benefits Standards Act,<br />

1985 came into force on July 1, <strong>2010</strong>. These regulations set out new minimum funding requirements<br />

applicable to the Plan and they are reflected in this valuation report. The main changes under these<br />

regulations are as follows:<br />

• The solvency deficiency and the resulting solvency special payments are now based on an average<br />

solvency ratio determined as a three year average of solvency ratios (current year plus the previous<br />

two) subject to prescribed adjustments;<br />

• The solvency special payment is re-established at each valuation and is the amount by which the<br />

solvency deficiency divided by five exceeds the going concern special payments for the year;<br />

• Transition rules apply for the determination of the average solvency ratio for the first two valuation<br />

reports filed on and after July 1, <strong>2010</strong>;<br />

• Contribution holidays are only permitted (subject to plan provisions) if the solvency ratio at the<br />

current valuation date exceeds 1.05 and the Plan has a going concern excess;<br />

• Filing of actuarial valuation reports is now generally required on an annual basis; and<br />

• Starting January 1, 2011, required contributions must be remitted monthly (rather than quarterly),<br />

not later than 30 days after the end of the period for which the installment is owed.<br />

A new <strong>Canadian</strong> Institute of Actuaries Standard of Practice for determining pension commuted values<br />

(CIA Standard) became effective April 1, 2009. The new CIA Standard changed the assumptions to<br />

be used to value the solvency and wind-up liabilities for benefits assumed to be settled through a<br />

lump sum transfer and for other benefits for which this basis has been used as a proxy to the cost of<br />

purchasing annuities. The financial impact of the new CIA Standard has been reflected in the<br />

actuarial valuation.<br />

The <strong>Commission</strong> measures its accrued benefit obligations and the fair value of plan assets of its<br />

pension plans and post-retirement non-pension benefits for accounting purposes at September 30th<br />

of each year.<br />

Accrued benefit obligation, plan assets, and funded status:<br />

Change in Accrued<br />

Benefit Obligation Pension Other Benefit Plans<br />

(in thousands) <strong>2010</strong> 2009 <strong>2010</strong> 2009<br />

Accrued benefit obligation,<br />

beginning of year $ 17,376 $ 17,235 $ 2,069 $ 2,720<br />

Current service cost (employer<br />

portion) 371 536 230 254<br />

Interest cost 1,145 1,163 148 190<br />

Employees’ contributions 132 142 – –<br />

Benefits paid (1,227) (1,084) (267) (554)<br />

Actuarial loss/(gain) 2,874 (616) 498 (541)<br />

Increase/(decrease) in<br />

accrued benefit obligation due to<br />

curtailment (183) – (296) –<br />

Contractual termination benefits 505 – – –<br />

Accrued benefit obligation, end<br />

of year $ 20,993 $ 17,376 $ 2,382 $ 2,069<br />

The effect on the accrued benefit obligation at the end of the year of a one percentage point increase<br />

in the assumed health care cost trend rate would be an increase of $287,200 ($153,800 in 2009), and<br />

a one percentage point decrease would be a decrease of $219,900 ($120,800 in 2009). The effect<br />

on the service cost plus interest costs at the end of the year of a one percentage point increase in<br />

assumed health care cost trend rate would be an increase of $41,900 ($44,800 in 2009), and a one<br />

percentage point decrease would be a decrease of $31,700 ($32,200 in 2009).<br />

The plan assets at the end of <strong>2010</strong> and 2009 related to the Registered Pension Plan and the<br />

Supplementary Retirement Plan exceed the accrued benefit obligation. The accrued benefit obligation<br />

for the Pension Plan for Employees of the CTC in China, Germany, Japan and South Korea exceed<br />

the plan assets at the end of <strong>2010</strong> and 2009.<br />

The accrued benefit obligation and fair value of assets at year-end are the following amounts in<br />

respect of plans that are either unfunded or not fully funded:<br />

Pension Other Benefit Plans<br />

Accrued Benefit Obligation $ 907 $ 509 $ 2,382 $ 2,069<br />

Fair value of plan assets – – – –<br />

Funded status – deficit,<br />

end of year $ (907) $ (509) $ (2,382) $ (2,069)<br />

Detailed Pension Plan information<br />

Defined benefit component of the Registered Pension Plan<br />

for the Employees of the <strong>Canadian</strong> <strong>Tourism</strong> <strong>Commission</strong><br />

Accrued benefit obligation $ (19,137) $ (16,099)<br />

Fair value of plan assets 19,539 18,731<br />

Surplus 402 2,632<br />

Defined benefit component of the Supplementary<br />

Retirement Plan for Certain Employees of the <strong>Canadian</strong><br />

Accrued benefit obligation (949) (768)<br />

Fair value of plan assets 1,109 1,111<br />

Surplus 160 343<br />

Pension Plan for Employees of the CTC in China,<br />

Germany, Japan and South Korea<br />

Accrued benefit obligation (907) (509)<br />

Fair value of plan assets – –<br />

Deficit $ (907) $ (509)<br />

Change in Plan Assets Pension Other Benefit Plans<br />

Fair value of plan assets,<br />

beginning of year $ 19,842 $ 17,526 $ – $ –<br />

Actual return on plan assets net<br />

of actual investment expenses 931 1,227 – –<br />

Employer contributions 970 2,031 267 554<br />

end of year $ 20,648 $ 19,842 $ – $ –<br />

The weighted-average asset allocation by asset category of the <strong>Commission</strong>’s defined benefit pension<br />

plans is as follows:<br />

Equity Securities 62% 61%<br />

Debt Securities 35% 36%<br />

Receivable from Government of <strong>Canada</strong> 3% 3%<br />

Total 100% 100%<br />

Reconciliation of Funded Status to<br />

Accrued Benefit Asset/(Liability) Pension Other Benefit Plans<br />

Funded status – surplus/(deficit),<br />

end of year $ (346) $ 2,466 $ (2,382) $ (2,069)<br />

Employer contributions during<br />

period from measurement date<br />

to fiscal year end 133 431 – –<br />

Unamortized past service costs 126 100 49 63<br />

Unamortized net actuarial<br />

loss/(gain) 3,410 98 (1,319) (1,948)<br />

Accrued benefit asset/(liability) $ 3,323 $ 3,095 $ (3,652) $ (3,954)<br />

Accrued Benefit Asset/(Liability)<br />

for the Employees of the <strong>Canadian</strong> <strong>Tourism</strong> <strong>Commission</strong> $ 4,907 $ 4,262<br />

Total Accrued Benefit Asset $ 4,907 $ 4,262<br />

<strong>Tourism</strong> <strong>Commission</strong> $ (161) $ (156)<br />

Pension Plan for the Employees of the CTC in China,<br />

Germany, Japan and South Korea (1,423) (1,011)<br />

Non-pension Post Retirement Benefit Plan (1,171) (1,017)<br />

Post Employment Severance Plan (2,481) (2,937)<br />

Total Accrued Benefit Liablity $ (5,236) $ (5,121)<br />

The total accrued benefit asset excludes a notional supplementary retirement plan for certain employees<br />

of the <strong>Commission</strong>. The notional supplement retirement plan was $0 in <strong>2010</strong> ($6,000 in 2009).<br />

The cumulative excess of pension contributions on the Registered Pension Plan over pension benefit<br />

cost is reported as an accrued benefit asset. The Supplementary Retirement Plan, the Pension Plan<br />

for Employees of CTC in China, Germany, Japan, and South Korea, the post-retirement and postemployment<br />

benefits are reported as an accrued benefit liability.<br />

Net benefit cost recognized in the period:<br />

Components of Net Periodic<br />

Benefit Cost Pension Other Benefit Plans<br />

Current service cost<br />

(employer portion) $ 371 $ 536 $ 230 $ 254<br />

Actual decrease of plan assets,<br />

net of actual investment expenses (931) (1,227) – –<br />

Actuarial loss/(gain) 2,875 (616) 498 (541)<br />

Curtailment gain (183) – (296) –<br />

Costs/(income) arising in the<br />

period 3,782 (144) 580 (97)<br />

Differences between costs arising<br />

in the period and costs recognized<br />

in the period in respect of:<br />

· Decrease of/(return on) plan<br />

assets (401) 51 – –<br />

· Actuarial loss/(gain) (2,911) 593 (680) 408<br />

· Plan amendments (26) (26) 13 9<br />

· Curtailment loss – – 52 –<br />

Net periodic benefit cost/(income)<br />

recognized $ 444 $ 474 $ (35) $ 320<br />

Significant actuarial assumptions used are as follows (weighted average):<br />

Pension<br />

Other Benefit Plans<br />

<strong>2010</strong> 2009 <strong>2010</strong> 2009<br />

Accrued benefit obligation:<br />

Discount rate 5.40% 6.60%<br />

· Non-pension post retirement 5.90% 7.50%<br />

· Post employment severance 5.20% 6.40%<br />

Rate of compensation increase:<br />

· <strong>Canadian</strong> 3.50% 3.50% 4.00% 4.00%<br />

· Locally engaged 4.50% 4.50% 4.50% 4.50%<br />

Net benefit cost:<br />

Discount rate 6.60% 6.75%<br />

· Non-pension post retirement 7.50% 6.85%<br />

· Post employment severance 6.40% 6.50%<br />

Expected long-term rate of return<br />

on plan assets 6.75% 6.75%<br />

· <strong>Canadian</strong> 3.50% 4.00% 4.00% 4.00%<br />

Assumed health care cost trend rate for other benefit plans:<br />

Accrued benefit obligation <strong>2010</strong> 2009<br />

Initial health care trend rate 6.91% 6.96%<br />

Ultimate health care trend rate 4.48% 4.48%<br />

Year ultimate rate reached 2029 2029<br />

Net benefit cost <strong>2010</strong> 2009<br />

Initial health care trend rate 6.96% 6.59%<br />

Ultimate health care trend rate 4.48% 4.66%<br />

Year ultimate rate reached 2029 2014<br />

Total cash amounts<br />

Total cash amounts for employee future benefits, consisting of cash contributed in the normal course<br />

of business by the <strong>Commission</strong> to its funded and unfunded defined benefit pension plans, cash<br />

payments directly to beneficiaries for its unfunded other benefit plans, cash contributed to its defined<br />

contribution plans and cash contributed to its multi-employer defined benefit plan is $1,208,709<br />

($1,564,646 in 2009). In addition, the <strong>Commission</strong> was required to make special quarterly payments<br />

totaling $333,800 ($1,323,600 in 2009) due to the unfunded liability and solvency shortfall identified in<br />

the most recent actuarial valuation of the <strong>Canadian</strong> registered defined benefit pension plan for funding<br />

purposes as of December 31, 2009. The total cash amount is $1,614,509 ($2,888,246 in 2009).<br />

Letter of Credit<br />

The <strong>Commission</strong> has a registered retirement compensation arrangement for certain employees of<br />

the <strong>Canadian</strong> <strong>Tourism</strong> <strong>Commission</strong>. The actuarial valuation completed September 2009 for the year<br />

ending December 31, <strong>2010</strong> was used to determine the face amount of the letter of credit during <strong>2010</strong>.<br />

The value of the plan’s letter of credit, in place during <strong>2010</strong>, is measured based on the estimated<br />

assets and liabilities for the year ending December 31, <strong>2010</strong>. The estimated market value of the<br />

plans’ assets was $1,084,700 ($1,167,400 in 2009) and the estimated present value of the unfunded<br />

benefit obligation was $1,376,100 ($1,383,800 in 2009). The amount of $291,400 ($216,400 in 2009)<br />

of the unfunded benefit obligation has been secured by a letter of credit.<br />

8. Parliamentary appropriations<br />

The schedule below reconciles the amount of funding available to the <strong>Commission</strong> during the year<br />

with the amount actually used in operations:<br />

Amount provided for operating and capital expenditures:<br />

Amounts voted in 2009/10 (2008/09)<br />

Main estimates $ 83,526 $ 82,646<br />

Supplementary estimates B 4 10<br />

Treasury Board Vote 15 1,572 –<br />

Treasury Board Vote 35 20,000 –<br />

105,102 82,656<br />

Less: Portion recognized in calendar 2009 (2008) (73,366) (56,096)<br />

2009/10 (2008/09) portions recognized in <strong>2010</strong> (2009) 31,736 26,560<br />

Amounts voted in <strong>2010</strong>/11 (2009/10)<br />

Main estimates 100,643 83,526<br />

Supplementary estimates B 8,000 4<br />

Treasury Board Vote 15 822 1,572<br />

Treasury Board Vote 35 20,000<br />

Permanent Frozen Allotment (900)<br />

108,565 105,102<br />

Less: Portion to be recognized in calendar 2011 (<strong>2010</strong>) (38,688) (19,994)<br />

Parliamentary appropriations receivable/(deferred) at year-end 5,233 (11,742)<br />

<strong>2010</strong>/11 (2009/10) portions recognized in <strong>2010</strong> (2009) 75,110 73,366<br />

106,846 99,926<br />

Amounts used to purchase property, equipment and intangible assets (563) (3,338)<br />

Parliamentary appropriations used for operations in the year $ 106,283 $ 96,588<br />

9. Deferred capital funding<br />

Deferred capital funding represents the unamortized portion of parliamentary appropriations and other<br />

funding received to purchase property, equipment and intangible assets.<br />

Changes in the deferred capital funding balance during the year ended December 31 were as follows:<br />

Balance, beginning of year<br />

Parliamentary appropriations $ 5,178 $ 4,388<br />

Funding from related party 206 290<br />

5,384 4,678<br />

Funding received in the current year for the acquisition of<br />

property, equipment and intangible assets<br />

Parliamentary appropriations 563 3,338<br />

Disposal of property and equipment – (7)<br />

563 3,331<br />

Parliamentary appropriations (2,234) (2,541)<br />

Funding from related party (84) (84)<br />

(2,318) (2,625)<br />

Balance, end of year<br />

Parliamentary appropriations 3,507 5,178<br />

Funding from related party 122 206<br />

$ 3,629 $ 5,384<br />

10. Accumulated surplus<br />

The surplus represents the pension and non-pension obligations that have been incurred by the<br />

<strong>Commission</strong> and pre-funded through Parliamentary appropriations. The surplus is a result of pre-funded<br />

employee future benefits that will be paid by the <strong>Commission</strong>. The surplus incorporates working<br />

capital appropriations received, which has accumulated to $1.5 million as at December 31, <strong>2010</strong><br />

($947,000 as at December 31, 2009).<br />

11. Marketing and sales expenses<br />

The <strong>Commission</strong> carries out marketing and sales activities in a variety of countries around the world.<br />

These countries are supported by the <strong>Commission</strong>’s Corporate Marketing and Sales units, located at<br />

headquarters including E-Marketing, Brand, Research, Media PR and Business Development. Total<br />

marketing and sales expenses are comprised of the following:<br />

United States $ 40,685 $ 38,347<br />

International (Europe, Latin America, Asia-Pacific) 30,928 25,970<br />

Corporate Marketing and Sales 18,961 20,239<br />

Domestic 11,139 10,800<br />

Emerging Markets (India, Brazil) 3,789 1,066<br />

$ 105,502 $ 96,422<br />

During <strong>2010</strong>, the majority of the costs incurred relating to the reorganization of Marketing and Sales<br />

units have been included under Corporate Services.<br />

12. <strong>2010</strong> Winter Olympic and Paralympic Games<br />

On October 18, 2007, the Treasury Board of <strong>Canada</strong> approved $26 million of one-time funding to<br />

support the <strong>Commission</strong> in delivering programs related to the <strong>2010</strong> Winter Olympic and Paralympic<br />

Games. These funds are expected to be utilized over a five year period, which commenced in fiscal<br />

2008. As at December 31, <strong>2010</strong>, the <strong>Commission</strong> has drawn $20.8 million ($4.8 million in <strong>2010</strong>).<br />

The remaining amounts will be requested through Main Estimates appropriations over the next two<br />

Government fiscal years (<strong>2010</strong>/11 to 2011/12).<br />

For the year ended December 31, <strong>2010</strong>, the <strong>Commission</strong> incurred costs, related to the <strong>2010</strong> Winter<br />

Olympic and Paralympic Games as follows:<br />

Partnership contributions $ 698 $ 2,823<br />

Marketing and Sales 7,809 9,362<br />

Corporate Services 26 97<br />

Strategy and Planning – 98<br />

7,835 9,557<br />

Total $ 7,137 $ 6,734<br />

13. Stimulus<br />

In Budget 2009, the Treasury Board of <strong>Canada</strong> approved government fiscal years and entrusted the<br />

<strong>Commission</strong> with $40 million, $20 million for each of the 2009/10 and <strong>2010</strong>/11 government fiscal<br />

years, as part of a greater stimulus package which formed <strong>Canada</strong>’s Economic Action Plan. In <strong>2010</strong>,<br />

the <strong>Commission</strong> received an additional $8 million for the <strong>2010</strong>/11 government fiscal year. The CTC’s<br />

stimulus strategy includes a domestic revenue advertising program and activities in international<br />

priority markets.<br />

For the year ended December 31, <strong>2010</strong>, the <strong>Commission</strong> incurred costs, related to the stimulus<br />

program as follows:<br />

Partnership contributions $ 2,081 $ 1,697<br />

Marketing and Sales 24,599 19,884<br />

Corporate Services 642 741<br />

Strategy and Planning 39 51<br />

25,280 20,676<br />

Total $ 23,199 $ 18,979<br />

14. New Organizational Structure<br />

In July <strong>2010</strong>, the CTC announced a new organizational structure that includes a reduction of 46 staff<br />

and the closure of 8 offices globally. By December 31, <strong>2010</strong>, the CTC ceased use of 5 offices and<br />

incurred net costs of $3.3 million related to compensation, professional services and office closures.<br />

The majority of the costs are reflected in current year Corporate Services expenses in the Statement<br />

of Operations, Comprehensive Income and Accumulated Surplus.<br />

15. Commitments<br />

The <strong>Commission</strong> has entered into various agreements for marketing and consulting services and<br />

leases for office premises and equipment in <strong>Canada</strong> and abroad. The total commitments of the<br />

<strong>Commission</strong> as at December 31, <strong>2010</strong> are $36.5 million ($39.2 million in 2009).<br />

The future minimum lease payments, included in the $36.5 million, for office premises and equipment<br />

pursuant to these agreements are approximately as follows:<br />

2011 2012 2013 2014 2015 Subtotal 2016-2017 Total<br />

$ 1,806 $ 1,072 $ 737 $ 764 $ 715 $ 5,094 $ – $ 5,094<br />

Commitments include the future lease payment of operational offices. Costs relating to offices no<br />

longer in use at December 31, <strong>2010</strong> have been captured in <strong>2010</strong> results.<br />

16. Related party transactions<br />

The <strong>Commission</strong> is related in terms of common ownership to all Government of <strong>Canada</strong> departments,<br />

agencies and Crown corporations and is primarily financed by the Government of <strong>Canada</strong> (Note 8).<br />

In the normal course of business and on normal trade terms applicable to all individuals and<br />

enterprises, the <strong>Commission</strong> incurred expenses totaling $1.5 million ($1.9 million in 2009) for<br />

marketing, research and other professional services purchased from other government departments<br />

and agencies, and received partnership contributions and other amounts totaling $1.9 million<br />

($2.7 million in 2009) from other government departments and agencies. These transactions are<br />

recorded at the exchange amount, which approximates fair value. Accounts receivable and payable<br />

from the Government of <strong>Canada</strong> are also reported on the balance sheet.<br />

17. Contingencies<br />

In the normal course of business, various claims and lawsuits have been brought against the<br />

<strong>Commission</strong>. Where in the opinion of management, losses, which may result from the settlement<br />

of the matters, are determinable within a reasonable range and such losses were considered by<br />

management as likely to be incurred, they would be charged to expenses. In the event management<br />

concludes that potential losses are indeterminable, no provision has been recognized in the accounts<br />

of the <strong>Commission</strong>.<br />

18. Comparative figures<br />

Certain comparative figures have been reclassified to conform with the presentation adopted in the<br />

current year.<br />

Glossary of terms & acronyms<br />

Glossary<br />

Destination Marketing Organization (DMO): A<br />

company or other entity involved in the business<br />

of increasing tourism to a destination or improving<br />

its public image.<br />

Explorer Quotient ® (EQ): An innovative research<br />

tool that identifies the underlying emotional<br />

motivators of travellers beyond traditional<br />

demographics like age and geography.<br />

International tourism revenue: Spending by<br />

goods and services, including spending that<br />

may take place outside of <strong>Canada</strong>, such as the<br />

purchase of an airline ticket from a <strong>Canadian</strong><br />

international carrier, to travel to <strong>Canada</strong>.<br />

International tourist arrivals: Total number of<br />

arrivals (not persons) in <strong>Canada</strong> who are overnight<br />

visitors staying at least one night in a collective<br />

or private accommodation. Note: A person who<br />

makes several trips to <strong>Canada</strong> during a given<br />

period will be counted as a new arrival each time.<br />

Provincial Marketing Organization (PMO):<br />

A provincial entity involved in the business of<br />

increasing tourism to a province or improving its<br />

public image.<br />

<strong>Tourism</strong> employment: Measure of the number<br />

of jobs in an industry generated by, or attributable<br />

to, tourism spending on the goods and/or<br />

services produced by that industry. It is based on<br />

an estimate of jobs rather than “hours of work.”<br />

Thus, someone who works 10 hours a week<br />

counts for as much, by this measure, as someone<br />

who works 50 hours a week.<br />

<strong>Tourism</strong> export revenue: Total international tourism<br />

revenue, calculated by subtracting domestic<br />

tourism revenue from total tourism revenue.<br />

<strong>Tourism</strong> Gross Domestic Product (GDP):<br />

purchased by tourists.<br />

<strong>Tourism</strong> revenue: Spending of <strong>Canadian</strong> and<br />

foreign visitors on domestically produced<br />

commodities, as reported by Statistics <strong>Canada</strong><br />

as total tourism demand in the <strong>Canadian</strong> <strong>Tourism</strong><br />

Satellite Account. It is the sum of tourism domestic<br />

demand and tourism exports.<br />

Tourist receipts: Expenditures made by visitors<br />

from abroad generated by overnight trips, as<br />

reported by Statistics <strong>Canada</strong> as overnight international<br />

trip spending.<br />

Acronyms<br />

BSC Balanced Scorecard<br />

CBI Country Brand Index<br />

CEO Chief Executive Officer<br />

CFO Chief Financial Officer<br />

CICA <strong>Canadian</strong> Institute of Chartered<br />

Accountants<br />

CSP <strong>Canada</strong> Specialist Program<br />

CTC <strong>Canadian</strong> <strong>Tourism</strong> <strong>Commission</strong><br />

DFAIT Foreign Affairs and International Trade<br />

DMO Destination Marketing Organization<br />

EQ Explorer Quotient ®<br />

ERA Enterprise Risk Assessment<br />

FAA Financial Administration Act<br />

FAM Familiarization<br />

GDP Gross Domestic Product<br />

GSA General Sales Agency<br />

MC&IT Meetings, Convention & Incentive Travel<br />

MD&A Management Discussion & Analysis<br />

NTO National <strong>Tourism</strong> Organization<br />

PMO Provincial Marketing Organization<br />

PR Public Relations<br />

PSAB Public Sector Accounting Board<br />

ROI Return on Investment<br />

SME Small and Medium-sized Enterprise<br />

TBS Treasury Board Secretariat<br />

UNWTO United Nations World <strong>Tourism</strong><br />

Organization<br />

VANOC Vancouver <strong>2010</strong> Organizing Committee<br />

VJP Visiting Journalist Program<br />

Library and Archives <strong>Canada</strong> Cataloguing in Publication<br />

<strong>Canadian</strong> <strong>Tourism</strong> <strong>Commission</strong><br />

<strong>2010</strong> <strong>Annual</strong> <strong>Report</strong> / <strong>Canadian</strong> <strong>Tourism</strong> <strong>Commission</strong><br />

Issued also in French under title: Rapport annuel <strong>2010</strong><br />

Catalogue numbers:<br />

Paper: Iu82-<strong>2010</strong>E<br />

PDF: Iu82-<strong>2010</strong>E-PDF<br />

Suite 1400, Four Bentall Centre<br />

1055 Dunsmuir Street<br />

Vancouver, BC V7X 1L2<br />

www.canada.travel<br />

© 2011 <strong>Canadian</strong> <strong>Tourism</strong> <strong>Commission</strong><br />

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Annual Report on the Operation of the Canadian Multiculturalism Act 2019-20

Building a better canada through diversity.

This publication is available upon request in alternative formats.

On this page

List of figures, list of tables, list of participating federal institutions, list of acronyms and abbreviations, foreword from the minister of diversity and inclusion and youth, history of canadian multiculturalism, evolution of multiculturalism policies in canada, multiculturalism program overview, key federal commitments, multiculturalism program highlights, key initiatives at canadian heritage: enhancing the multiculturalism mandate, methodology and approach to analysis, federal institutions highlights – thematic analysis.

  • Figure 1 Pillars of Canada's Anti-Racism Strategy 2019-2022
  • Figure 2 Response Rate of Federal Institutions to Questionnaire
  • Figure 3 Number of Employees Represented in Responses (Including Members of the Canadian Armed Forces)
  • Figure 4 Percentage of Institutions that Collect Racial, Ethnic, or Religious Diversity Data to Develop or Improve Policies, Programs, Practices or Services
  • Figure 5 Percentage of Institutions with Events that Educate Employees on Diversity in the Workplace
  • Figure 6 Average Percentage of Operational, Management, and Executive Visible Minorities, Overall Average
  • Figure 7 Total Number of Visible Minority Hires, Total Number of Visible Minority Promotions
  • Figure 8 Percentage of Institutions that Work Proactively with Post-Secondary Institutions, Developed Hiring Programs for Visible Minorities, Developed Mentorship Programs
  • Figure 9 Percentage of Institutions that Allow for Bilingual Non-Imperative Staffing of Visible Minorities, Have In-House Language Training for All Staff
  • Figure 10 Percentage of Institutions whose Employees Participated in Anti-Racism/Anti-Racial Discrimination Training
  • Figure 11 Percentage of Institutions that Have a Mechanism to Disclose Issues of Racism/Racial Discrimination
  • Figure 12 Percentage of Institutions that Translated Policies, Practices, or Services into Languages Other than English or French
  • Figure 13 Percentage of Institutions that Provide the Public Access to Translators
  • Figure 14 Percentage of Institutions that Leverage the Multilingual Capacity, Cultural Competency, or Cultural Expertise of Employees
  • Figure 15 Percentage of Institutions that Developed Partnerships with Stakeholders to Promote Multiculturalism
  • Table 1 Community Support, Multiculturalism and Anti-Racism Initiative Funding Comparison, 2018-19 to 2019-20
  • Table 2 Promising Practices – Collection of Data
  • Table 3 Promising Practices – Education and Awareness
  • Table 4 Promising Practices – Prevention and Solutions
  • Table 5 Promising Practices – Promotion and Celebration
  • Administrative Tribunals Support Service of Canada
  • Agriculture and Agri-Food Canada
  • Atlantic Canada Opportunities Agency
  • Atlantic Pilotage Authority
  • Atomic Energy of Canada Limited
  • Bank of Canada
  • Business Development Bank of Canada
  • Canada Border Services Agency
  • Canada Council for the Arts
  • Canada Development Investment Corporation
  • Canada Economic Development for Quebec Regions
  • Canada Energy Regulator
  • Canada Lands Company
  • Canada Mortgage and Housing Corporation
  • Canada Newfoundland & Labrador Offshore Petroleum Board
  • Canada Post
  • Canada Revenue Agency
  • Canadian Air Transport Security Authority
  • Canadian Dairy Commission
  • Canadian Food Inspection Agency
  • Canadian Grain Commission
  • Canadian Heritage
  • Canadian Human Rights Commission
  • Canadian Intergovernmental Conference Secretariat
  • Canadian Museum for Human Rights
  • Canadian Museum of History
  • Canadian Museum of Immigration at Pier 21
  • Canadian Northern Economic Development Agency
  • Canadian Nuclear Safety Commission
  • Canadian Race Relations Foundation
  • Canadian Radio-Television and Telecommunications Commission
  • Canadian Securities Transition Office
  • Canadian Security Intelligence Service
  • Canadian Space Agency
  • Canadian Tourism Commission
  • Canadian Transportation Agency
  • CBC-Radio Canada
  • Civilian Review and Complaints Commission for the RCMP
  • Correctional Service Canada
  • Defence Construction Canada
  • Department for Women and Gender Equality
  • Department of Finance Canada
  • Department of Justice Canada
  • Department of National Defence and the Canadian Armed Forces
  • Elections Canada
  • Environment and Climate Change Canada
  • Export Development Canada
  • Farm Credit Canada
  • Federal Economic Development Agency for Southern Ontario
  • Financial Consumer Agency of Canada
  • Financial Transactions and Reports Analysis Centre of Canada
  • First Nations Tax Commission
  • Fisheries and Oceans Canada
  • Global Affairs Canada
  • Great Lakes Pilotage Authority
  • Health Canada
  • Immigration and Refugee Board of Canada
  • Impact Assessment Agency of Canada
  • Infrastructure Canada
  • Ingenium - Canada's Museums of Science and Innovation
  • Innovation, Science and Economic Development Canada
  • International Development Research Centre
  • Jacques Cartier and Champlain Bridges Incorporated
  • Library and Archives Canada
  • Marine Atlantic Canada
  • Military Police Complaints Commission
  • National Arts Centre
  • National Battlefields Commission
  • National Film Board of Canada
  • National Gallery of Canada
  • National Research Council Canada
  • Natural Resources Canada
  • Natural Sciences and Engineering Research Council of Canada
  • Office of the Auditor General of Canada
  • Office of the Commissioner for Judicial Affairs Canada
  • Office of the Intelligence Commissioner
  • Office of the Privacy Commissioner of Canada
  • Office of the Public Sector Integrity Commissioner of Canada
  • Office of the Superintendent of Financial Institutions Canada
  • Pacific Pilotage Authority Canada
  • Parks Canada
  • Parole Board of Canada
  • Patented Medicine Prices Review Board
  • Privy Council Office
  • Public Health Agency Canada
  • Public Prosecution Service Canada
  • Public Safety Canada
  • Public Sector Pension Investment Board (PSP Investments)
  • Public Service Commission of Canada
  • Public Services and Procurement Canada
  • Royal Canadian Mint
  • Royal Canadian Mounted Police
  • Security Intelligence Review Committee
  • Shared Services Canada
  • Social Sciences and Humanities Research Council of Canada
  • Standards Council of Canada
  • Statistics Canada
  • Telefilm Canada
  • The Federal Bridge Corporation
  • Transport Canada
  • Transportation Safety Board of Canada
  • Treasury Board of Canada Secretariat
  • Veterans Review and Appeal Board
  • Via Rail Canada
  • Western Economic Diversification Canada

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canadian tourism commission annual report

Annual Report on the Operation of the Canadian Multiculturalism Act 2019-20 [ PDF version - 13.4 MB ]

Bardish Chagger

In Canada, diversity is one of our greatest strengths, yet we know that a truly multicultural society—one that is truly open and inclusive—is always a work in progress. In 2019, I was named Canada’s first Minister of Diversity and Inclusion and Youth. The creation of this ministry is a strong signal of our government’s commitment to having diversity and inclusion at the centre of our decision making. As Prime Minister Justin Trudeau has said, Canada is stronger, not in spite of our differences, but because of them. Canada’s diversity is our strength.

In June 2019, our government launched the anti-racism strategy entitled Building a Foundation for Change: Canada’s Anti-Racism Strategy 2019-2022 . This strategy, created for Canadians, by Canadians, was informed by lived experiences through 22 in-person consultations with 600 individuals from 443 organizations, in addition to more than 800 online submissions.

Canada’s Anti-Racism Strategy is an evergreen document that has laid the groundwork for long-term action by supporting three guiding principles: demonstrating federal leadership, empowering communities, and building awareness and changing attitudes. This Strategy addresses racism and discrimination in all of its forms, with a strong focus on community-based projects. It also complements existing government efforts aimed at eliminating inequities and inequalities that exist in Canada.

The Anti-Racism Secretariat coordinates federal action, including engaging with provinces, territories, and civil society to address all forms of racism, including anti-Black racism, anti-Indigenous racism, anti-Asian racism, antisemitism, and Islamophobia. The Secretariat also leads efforts to identify systemic barriers and gaps to develop further areas for action.

The COVID-19 pandemic has affected all Canadians and disproportionately certain segments of the population, including racialized communities, religious minorities, and Indigenous Peoples. The Anti-Racism Secretariat and Women and Gender Equality Canada set up the Equity-Seeking Communities and COVID-19 Taskforce to ensure that the federal response to COVID-19 is adapted to the needs of equity-seeking communities by engaging other federal departments, as well as communities, on disaggregated data, newcomer populations, and anti-Indigenous, anti-Black, and anti-Asian racism.

A truly multicultural society demands our effort, our attention, and our care. The many protests and calls to action that have taken place in Canada and around the world have further amplified the systemic racism, discrimination, and the many injustices that exist in society. They remind us that as we build back even better and consciously more inclusive, each of us must continue to step up and be allies as we combat racism and discrimination in all of its forms.

I invite you to read the 2019-2020 Annual Report on the Operation of the Canadian Multiculturalism Act for further details.

canadian tourism commission annual report

The Honourable Bardish Chagger Minister of Diversity and Inclusion and Youth

Introduction

Canada was the first country to adopt a multiculturalism policy. On October 8, 1971, Prime Minister Pierre Trudeau announced multiculturalism as an official government policy, intended to preserve the cultural freedom of all individuals and provide recognition of the cultural contributions of diverse ethnic groups to Canadian society.

The multiculturalism policy was introduced in Canada based on the recommendations of the Royal Commission on Bilingualism and Biculturalism. While the commission, appointed in 1963, primarily examined means to develop an equal partnership between the English and French elements in Canada, it also considered the cultural contributions of other ethnic groups.

The policy was eventually enshrined into law in 1988 with the adoption of the Canadian Multiculturalism Act . The Act enabled the Minister responsible for the mandate to develop and deliver programs and practices to support its implementation. Previously, in 1982, the Canadian Charter of Rights and Freedoms had already recognized the multicultural heritage of Canada.

The principal objectives of the Policy focused on integration through:

  • Retaining and fostering of identity : Integration, not assimilation, was favoured as the best approach to encouraging participation. Assistance, whether in terms of funding for food and folklore events, heritage languages for newcomer children, or parliamentary recognition through messages or events (e.g. Black History Month and Asian Heritage Month), were some of the means used to recognize their contributions.
  • Overcoming barriers to participation: For integration to be meaningful, barriers (economic, social, cultural, and political) need to be reduced, if not eventually eliminated, to ensure meaningful equality of opportunity. Ideally, outcomes for all groups would be closely comparable in a variety of domains (e.g. employment and income, education, representation in government/private institutions, etc.).
  • Promoting exchanges : Exchanges and sharing between individuals and communities was to be encouraged as part of recognizing identities and encouraging participation.
  • Language acquisition : Minority groups were encouraged to learn at least one official language.

The Canadian Multiculturalism Act acknowledges multiculturalism as a fundamental characteristic of Canadian society with an integral role in the decision-making process of the federal government.

Following the adoption of the Act , the Department of Multiculturalism and Citizenship was created in 1991; however, it was integrated into the larger Department of Canadian Heritage in 1993. Since then, the Multiculturalism Program has been one major lever by which the Canadian government implements the Canadian Multiculturalism Act , and drives government priorities. Between 2008 and 2015, the Program was delivered by Citizenship and Immigration Canada/Immigration, Refugees and Citizenship Canada. In November 2015, the Program was transferred to the Department of Canadian Heritage.

The Multiculturalism Program delivers on its mandate via four key activities: grants and contributions; public outreach and promotion; support to federal and public institutions; and international engagement.

While some of the current priorities of the Multiculturalism Program are predicated on anti-racism initiatives (especially anti-Black racism) and support for equity-seeking communities, this focus is not new. Beginning in 1995, for example, employment equity legislation required that information be gathered on persons in designated groups, especially Canada’s visible minorities.

Since 1996, the census has collected information about racialized communities in Canada, and multiculturalism oriented itself towards the goals of eliminating racism and discrimination, and assisting institutions in becoming more responsive to Canada’s diversity.

The current policies within the Department of Canadian Heritage are a continuation of these perspectives, sharpened by the urgency of current events and increasing social awareness of the pervasive inequities and deep-seated biases that hinder the progress and success of certain groups, in particular Black, Indigenous, and People of Colour.

Part 1: Canadian Heritage

Today, the objectives of the Multiculturalism Program are to:

  • Support communities in confronting racism and discrimination, promoting intercultural and interfaith understanding and fostering equitable opportunities to participate fully in Canadian society;
  • Reinforce cooperation among federal institutions to identity and address systemic barriers that result from racism and religious discrimination;
  • Promote and engage in discussions on multiculturalism, diversity, racism and religious discrimination at the domestic and international levels, and;
  • Strengthen research and evidence to build understanding of the disparities and challenges faced by racialized and religious minority communities.

In support of its four objectives, the Multiculturalism Program undertakes five key areas of activity:

  • Community Investments – the Community Support, Multiculturalism, and Anti-Racism Initiatives (CSMARI) Program delivers grants and contributions funding under three components: projects, events and community capacity building. An additional component called Community Support for Black Canadian Youth Initiative (CSBCY) provides funding for projects that address the unique challenges faced by Black Canadian youth.
  • Multiculturalism Policy – provides evidence-based policy advice on the overall legislative, policy and regulatory framework for the operation of the Canadian Multiculturalism Act . The Multiculturalism Policy Directorate also conducts monitoring, research and analysis of the needs and interests of diverse groups and of emerging trends and issues in the areas of multiculturalism, diversity and inclusion.
  • Public Outreach and Promotion – conducts outreach and educates the public about multiculturalism initiatives such as Asian Heritage Month, Black History Month and Canadian Multiculturalism Day to increase awareness, understanding and public dialogue about multiculturalism in Canada.
  • Support to Federal and Public Institutions – supports federal institutions in meeting their obligations under the Canadian Multiculturalism Act , and shares challenges, best practices, and resources to improve implementation of the Act .
  • International Engagement – supports Canada’s participation in international agreements and bodies, such as the International Convention on the Elimination of Racial Discrimination and the International Holocaust Remembrance Alliance.

canadian tourism commission annual report

  • Demonstrating federal leadership
  • Empowering communities
  • Building awareness and changing attitudes

canadian tourism commission annual report

Budget 2018 provided $2 million for cross-country consultations on the development of new national anti-racism and anti-discrimination approaches. This engagement saw 22 in-person forums that welcomed 600 people and 443 organizations, as well as over 800 online submissions. Budget 2019 announced $45 million for Building A Foundation of Change: Canada’s Anti-Racism Strategy 2019-2022 , which aims to counter racism in its various forms, with a strong focus on community-based investments. This new component of the Multiculturalism Program recognizes that the Government of Canada must take a leading role in addressing systemic racism and discrimination, and the Government of Canada delivered on its commitment to establish a new Anti-Racism Secretariat in October 2019. The Secretariat leads a whole-of-government approach to working with federal organizations to identify systemic barriers and gaps, develop new initiatives, and consider the impacts of new and existing policies, services and programs on racialized, Indigenous and religious minority communities. This work is designed as a first step for longer-term federal action against racism and discrimination in Canada.

canadian tourism commission annual report

A key component of the Anti-Racism Strategy is the effort to address gaps in data and evidence. The lack of detailed, disaggregated data as well as shortcomings in the consistent collection, measurement, reporting and analysis of data have been cited as underlying factors contributing to racism. As part of the effort to improve data collection and analysis, funding was allocated through the Strategy to Statistics Canada ($4.25 million) and the Department of Justice ($660,000). Funding was also provided to Public Safety Canada ($900,000) to support it in developing a national framework and evidence-based guidelines to better respond to hate crimes, hate incidents and hate speech. These projects will result in new, publicly available research to address systemic barriers in Canadian society.

Empowering Communities – Multiculturalism Program: Grants and Contributions Funding

The anti-racism action program (arap).

Canada’s Anti-Racism Strategy allocated approximately $15 million to create the new Anti-Racism Action Program (ARAP), which will deliver community funding to address barriers to employment, justice and social participation among Indigenous Peoples, racialized communities, and religious minorities. ARAP will also prioritize projects that target online hate and promote digital literacy. A call for proposals for ARAP was launched in September 2019.

The Community Support, Multiculturalism and Anti-Racism Initiative

The core multiculturalism funding program, the Community Support, Multiculturalism and Anti-Racism Initiatives Program, continues to be a key funding program that supports Events, Projects and Community Capacity Building efforts. CSMARI received a top-up of $21 million on its funding through Budget 2018 that continues to be distributed to communities throughout the year.

In September 2018, a call for proposals was launched for CSMARI Projects and Community Capacity Building, and CSBCY. This intake closed on May 31, 2019 and resulted in $9.3M in funding for 96 projects over two or more fiscal years. This intake also resulted in $4.7M in funding for 77 single-year Community Capacity Building projects.

Spotlight: A CSMARI Funded Project

Project: Linking Together 2.0: Capacity Building for Sexuality and Gender Diverse Communities in PEI

Funding received: $17,000

Peers Alliance is a centre for sexual health wellbeing and drug use harm reduction. The funding was used to support 2SLGBTQ+ communities across Prince Edward Island by creating a virtual community centre which will help increase understanding of and comfort with 2SLGBTQ+ people on PEI. As part of the project, Peers Alliance worked with the PEI Association for Newcomers to Canada, the Mi’kmaq Confederacy of PEI an, the Black Cultural Society of PEI and La Fédération culturelle de l’Ile-du-Prince-Édouard .

Project: Expanding Community Support for Immigrants and Refugees

Funding received: $62,550

The Inter-Cultural Association of Greater Victoria helps individuals and organizations connect across cultures by engaging people through networks, education, and arts programming. It provides high-quality frontline services to immigrants settling in the Greater Victoria area through information, support, and tools to help them reach their goals. The funding was used to redesign the organization’s communication strategy to enhance its ability to reach and engage with newly arrived immigrants, refugees, and the broader Victoria community.

Support to Black Canadian Youth

Budget 2018 also provided $9 million over three years to Canadian Heritage to address issues related to Black Canadian youth. Almost $8 million of this funding was distributed through the Community Support for Black Canadian Youth Initiative. A call for proposals for projects supporting Black Canadian youth closed in May 2019. This call saw 56 CSBCY projects receive multi-year funding. As well, $430,000 was committed for a National Anti-Black Education and Awareness Campaign (NABREAC) which is a two-year agreement with $215,000 delivered in 2019-20.

Spotlight: A CSBCY Funded Project

Project: Solid State Community Society’s Ethós Lab

Funding received: $154,054

Based in Vancouver, BC, this project established a cultural, social, and economic hub for Black youth between the ages of 13 and 30 called the Ethós Lab, which was anchored by a Black youth co-operative enterprise program. The Ethós Lab engaged Black youth in regular, multi-layered training and educational opportunities, including workshops on digital literacy, starting and owning a small business, and exploring cultural identity.

Public Outreach and Promotion

Black history month.

canadian tourism commission annual report

Every February, Canadians are invited to participate in Black History Month events that celebrate and honour the legacy and the many contributions of Black Canadians, past and present. In 2020, the theme of the Government of Canada’s Black History Month campaign was “Canadians of African Descent: Going forward, guided by the past”, inspired by the United Nations International Decade for People of African Descent. On February 24, the reception for Black History Month was held at the National Arts Centre. Over 1,000 guests attended, making this the largest Black History Month event held to date. In addition, the CSMARI Program supported 57 Black History Month community-led events for a total of $1.25M.

canadian tourism commission annual report

Asian Heritage Month

canadian tourism commission annual report

Asian Heritage Month honours the many achievements and contributions of Canadians of Asian descent who, throughout history, have done so much to make Canada the culturally rich nation that it is today. The theme for the 2019 Asian Heritage Month campaign was “Asian Canadian Youth: Shaping Canada’s Future.” On May 7, the reception for Asian Heritage Month was held at the National Gallery of Canada, with approximately 400 guests in attendance. Nine community-led Asian Heritage Month events were also supported through the CSMARI Program for a total of $226,000.

Commemorative Dates Adopted in 2019-2020

In keeping with the rich cultural heritage of our country and the spirit of our Multiculturalism Policy, which acknowledges the freedom of all members of Canadian society to preserve, enhance and share their cultural heritage, the Parliament of Canada passed three new parliamentary initiatives in 2019 proclaiming the invaluable contributions of many communities to Canada’s social, economic, and political fabric:

  • April was recognized as Sikh Heritage Month
  • The second week of September was recognized as Mennonite Heritage Week
  • Finally, May 5 was declared Dutch Heritage Day.

These commemorative dates present an excellent opportunity for Canadians to learn more about the richness of the cultures and the historical contributions of these communities.

International Engagement

While the federal government has demonstrated its commitment to equality and inclusion with a focus on anti-racism initiatives through continued investments, the Multiculturalism Program has also continued to play a role on the international stage. Much of Canada’s positive reputation abroad was achieved through our efforts to support values of diversity, inclusion, and respect, and to encourage a society where all citizens can equitably access and participate in its economic, cultural, social, and political spheres.

On December 23, 2013, the UN General Assembly proclaimed 2015-2024 as the International Decade for People of African Descent (resolution 68/237). This resolution addressed the need to strengthen national, regional, and international cooperation in relation to the full enjoyment of economic, social, cultural, civil, and political rights by people of African descent.

Under the theme of “People of African Descent: Recognition, Justice and Development”, the main objectives of the Decade are to:

  • Promote respect, protection, and fulfilment of all human rights and fundamental freedoms by people of African Descent, as recognized in the Universal Declaration of Human Rights;
  • Promote a greater knowledge of and respect for the diverse heritage, culture, and contribution of people of African descent to the development of societies; and,
  • Adopt and strengthen national, regional, and international legal frameworks according to the Durban Declaration and Programme of Action and the International Convention on the Elimination of All Forms of Racial Discrimination and to ensure their full and effective implementation.

On January 30, 2018, the Government of Canada officially recognized the Decade as an opportunity to highlight and celebrate the important contributions that people of African descent have made to Canadian society. It also acknowledged the existence of anti-Black racism and the accompanying need to understand and eliminate the barriers that keep Black Canadians from fully and equally participating in their society.

On March 13, 2020, Greg Fergus, Member of Parliament for Hull-Aylmer, participated via teleconference in the panel debate in Geneva, Switzerland, on the midterm review of the International Decade for People of African Descent. His attendance emphasized Canada’s commitment to the goals of the UN resolution both in an international context and as a reflection of what could be accomplished in Canada.

In recognition of the UN International Decade for People of African Descent, Budget 2019 invested $25 million over five years (starting in 2019-20) for Employment and Social Development Canada to administer projects and capital assistance to celebrate, share knowledge, and build capacity in Black Canadian communities.

The official recognition of the UN International Decade (and the subsequent funding of Canadian initiatives for Black Canadian communities) underscores the interdependence, intersectionality, and communal aspects of a worldview in which all members of society, here and abroad, are valued and recognized for their contributions.

International Convention on the Elimination of Racial Discrimination

Canada has ratified seven major UN human rights treaties, including the International Convention on the Elimination of All Forms of Racial Discrimination . This human rights instrument commits its members to the elimination of racial discrimination and the promotion of understanding among all races. The Convention was adopted by the UN on December 21, 1965. Canada ratified the Convention on Oct 14, 1970.

Article 1 of the Convention defines “racial discrimination” to mean “any distinction, exclusion, restriction or preference based on race, colour, descent, or national or ethnic origin, which has the purpose or effect of nullifying or impairing the recognition, enjoyment or exercise, on an equal footing, of human rights and fundamental freedoms in the political, economic, social, cultural or any other field of public life.” This declaration is congruent with existing Canadian legislation, including the Canadian Multiculturalism Act and the Canadian Charter of Rights and Freedoms .

International Holocaust Remembrance Alliance

The International Holocaust Remembrance Alliance (IHRA) is made up of government officials and experts from 34 countries, and promotes Holocaust education, remembrance, and research both nationally and internationally. Canada first became involved with the Alliance in 2007, became a full member in 2009, and chaired the Alliance until March 2014.

Canada submitted its first Country Report to the IHRA in January 2018. Covering the years 2011-2017, the Report contains information on general activities, including activities on Holocaust education, remembrance, research, and Holocaust denial and its relation to antisemitism.

Commemorative dates related to IHRA include Raoul Wallenberg Day on January 17, and International Holocaust Remembrance Day on January 27.

On January 27, 2020, Minister Chagger released a public statement supporting all Holocaust survivors and their descendants, particularly those who had chosen Canada as their home. She also emphasized that the IHRA definition of antisemitism had been adopted in Canada’s Anti-Racism Strategy.

Minister Chagger recommitted to the principles of the Declaration of the Stockholm International Forum on the Holocaust, which includes three key objectives:

  • Supporting Holocaust education, remembrance, and research in member countries and around the world;
  • Promoting the development of civil society through an annual grant programme; and
  • Working in partnership with other international organizations to support these principles and objectives

Along with other Ministers and representatives of the IHRA’s 34 Member Countries and one Liaison Country, she also supported the adoption of the 2020 IHRA Ministerial Declaration. This statement from the Luxembourg Chairmanship to mark the 75th anniversary of the liberation of German Nazi concentration camps reiterates the commitment to Holocaust education, remembrance, and research.

IHRA established the Committee on the Holocaust, Genocide and Crimes Against Humanity to develop and share best practices on how to sensitively reflect and discuss the Holocaust and other cases of genocides without diminishing their respective differences in an educational and research environment.

IHRA’s Recommendations for Teaching and Learning about the Holocaust were published in partnership with UNESCO. The recommendations will help teachers and educators, administrators, and policymakers develop knowledge about the Holocaust, create engaging teaching environments, promote critical and reflective thinking, and contribute to human rights and genocide prevention education.

Along with guidance for educators, the Committee produced a publication that provides an overview of programs provided by 120 organizations worldwide that deal with the Holocaust in comparison to mass atrocities, and an accompanying report entitled History Never Repeats itself, but Sometimes it Rhymes: comparing the Holocaust to different Atrocities .

The current Chair of IHRA’s Committee on the Holocaust, Genocide and Crimes against Humanity is a Canadian, Professor Clint Curle.

There are several funding programs at Canadian Heritage that aid in preserving and enhancing multiculturalism in Canada. They work to promote and recognize Canadians’ ethnocultural diversity in their programs, policies, and services. The following list is a sample of key funding programs in 2019-20.

Canada Media Fund

The Canada Media Fund (CMF) fosters, promotes, develops and finances the production of Canadian content for audiovisual platforms. Organizations supported by the CMF include Canadian television production companies, digital media production companies, and industry associations. Indigenous communities, official language minority communities, and third-language communities benefit from specially tailored funding envelopes. In addition to production financing, the CMF commissions studies and provides funding to industry organizations that work to support under-represented groups within the sector. From the Fund’s total budget of $353,157,000 in 2019-20, a total of $28,050,000 (7.94%) was allocated to ethnic, racial, or racial communities/initiatives.

One funded project included TLN Media Group’s documentary on the lives of Filipino caregivers, Nanny Magpakailanman? , which follows the lives of three characters at different stages of Canada’s Live-in Caregiver Program. This documentary is significant because it raises awareness about the lives of women who have left their families to care for others’ children around the world, in order to provide for their own families back at home. In some cases, these caregivers become citizens and may eventually reunite with their families. This is a program that has existed for decades but may be unknown to many Canadians. The documentary launches in 2021.

Digital Citizen Contribution Program

The Digital Citizen Contribution Program (DCCP) supports democracy and social inclusion in Canada by promoting an information ecosystem that is trusted, diverse, safe, and free from disinformation and illegal content, including hate speech, and by building citizen resilience to online disinformation through third-party civic, news, and media literacy activities and programming. In addition, the DCCP supports a community of Canadian researchers that promote a healthy environment ecosystem, to help Canadians and the Government understand online disinformation and its impact on Canadian society, and in turn build an evidence base to identify potential action and future policy-making. In 2019-20, 28.95%, or 11 out of 38 funded projects directly and specifically addressed ethnic, racial or religious communities.

One of the funded projects, “Engaging New Canadians through Digital and Civic Literacy,” by NorQuest College, seeks to engage members of vulnerable populations, including newcomers, English language learners (ELL) and English as a Second Language (ESL) learners in urban and rural areas. It engages them through online modules designed to raise awareness about online disinformation and enhance citizen preparedness to actively and productively participate in Canadian society. As there is limited research on the impact of online fraud and misinformation on vulnerable populations, this project aims to fill in the knowledge gap by researching the needs, developing training tools and resources specifically designed for ELL at a Canadian Language Benchmark (CLB) level of 2 and above, and evaluating their effectiveness in developing the skills and critical thinking needed for the identification of misinformation online. These resources are being piloted in NorQuest College’s courses that serve these populations, and this project is being conducted with regional partners. The project received $335,727 in funding and is taking place from December 2019 to March 2021.

Canada Cultural Spaces Fund

The Canada Cultural Spaces Fund (CCSF) contributes to improving physical conditions for professional arts and heritage-related collaboration, creation, presentation, preservation and exhibition while also contributing to increased and improved access for Canadians to arts and culture. The program achieves these objectives by supporting the construction and/or renovation of arts and/or heritage facilities, the acquisition of specialized equipment, and the development of feasibility studies for the construction or renovation of arts and/or heritage facilities, and sound business practices to help arts and heritage organizations be better rooted and recognized in their communities. The CCSF provides support through three components:

  • Strategic Initiatives;
  • Endowment Incentives; and
  • Limited Support to Endangered Arts Organizations.

The Strategic Initiatives component of the CCSF provides financial assistance for projects involving multiple partners that help arts and heritage organizations improve their business practices and diversify their revenues. 5% of the CCSF’s budget was allocated towards ethnic, racial, and religious communities.

One funded project was “Be Belong Become - The Realization Project,” by the NIA Centre for the Arts Incorporated. The Nia Centre for the Arts located in Toronto, Ontario, is transforming 524 Oakwood Avenue into a professional multidisciplinary arts centre to present dance, theatre, music, film and visual arts from African-Canadian artists and creators. The 14,000 square foot space will include a performance venue, a digital art studio, artist studios, a recording studio, gallery space, an event/rehearsal space, co-working space, office space for arts organizations, a boardroom and administrative offices. The renovations will allow the Nia Centre to realize its mission to create a centre for black arts and culture in Canada and increase access to arts activities in its community. The project was funded for $1,931,000 in 2019-20.

Canada Periodical Fund

The Canada Periodical Fund (CPF) supports the activities of Canadian magazines and non-daily newspapers, which include publishers and organizations from both official languages, ethnocultural, Indigenous and LGBTQ communities to ensure that Canadians have access to diverse Canadian magazines and non-daily newspapers. The CPF is delivered through the following components:

  • Aid to Publishers, which provides formula funding to Canadian print magazines and non-daily newspapers for publishing activities, such as distribution, content creation, online activities and business development;
  • Business Innovation, which provides funding to print magazines and digital periodicals for business development and innovation projects; and
  • Collective Initiatives, which provides funding to Canadian magazines and non-daily newspaper organizations for industry-wide projects to increase the overall sustainability of the Canadian magazine and non-daily newspaper industries.

In 2019-20, the CPF provided funding for 83 ethnocultural, 17 Indigenous, and 33 religious titles, accounting for 16.29% of funding. These were published in a total of 40 languages other than English and French.

One funded project was “The Greek Press,” by Greek Press Incorporated, a Greek-Canadian newspaper published weekly in Toronto, Ontario. The Greek Press editorial team is committed to its Founder’s mandate to present the life and achievements of a vibrant and strong Greek Canadian community in the Great Toronto Area, while keeping up to date with news and editorials that concern the current bi-cultural, bilingual and critical reader of today’s connected world. The Greek Press received $62,190 in operational funding for 2019-20.

Museums Assistance Program

The Museums Assistance Program (MAP) supports heritage institutions and workers to preserve and present heritage collections. MAP provides financial assistance to Canadian museums and related institutions for activities that facilitate Canadians' access to their heritage, fosters the preservation of Canada's cultural heritage, including the preservation of collections representative of Indigenous cultural heritage, and supports the development of professional knowledge, skills and practices related to key museum functions. In support of the Youth Employment and Skills Strategy, MAP assists heritage institutions in providing summer employment and internship opportunities for youth through Young Canada Works-Heritage. MAP also provides grants through the Movable Cultural Property Program to assist designated institutions to acquire cultural property that is threatened with export or is available for sale in international markets. In 2019-20, 9.6% of funding was allocated to ethnic, racial or religious communities.

An example of a funded initiative is the “Sacred Journey Travelling Exhibit” by the Heiltsuk Tribal Council, which received $40,000 in funding for 2019-20. The exhibit tells the story of the sea-going canoe, known to the Heiltsuk people as the glwa. After hosting the 2014 Qatuwas gathering, the Heiltsuk Tribal Council produced a feature-length documentary on modern canoe gatherings. This exhibit is an extension of that work to bring this story to other communities. The project respected Heiltsuk protocols and gives the Heiltsuk perspective on canoe culture, its history, resurgence and meaning to Heiltsuk communities. The exhibit featured structural elements and audio-visual components to place the viewer in the stories of the glwa from its legendary beginnings to modern canoe culture. The exhibit was hosted in Bella Bella, travelled to other locations in the Pacific Northwest, and is now permanently on display in Bella Bella, the home of the Heiltsuk.

Part 2: Implementation of the Canadian Multiculturalism Act across Federal Institutions

Part 2 of the Annual Report follows the structure of Section 3.2 of the Canadian Multiculturalism Act , which describes the responsibilities of federal institutions regarding promoting policies, programs and practices that are sensitive and responsive to the multicultural reality of Canada. The Canadian Multiculturalism Act recognizes the crucial role that federal institutions play in preserving and enhancing multiculturalism in Canada. The Act instructs federal organizations to address equal opportunity in federal institutions, promote capacity building, enhance the understanding of and respect for diversity, collect research and data that support the development of relevant policies, programs, and practices, and make appropriate use of the language skills and cultural knowledge of individuals of all origins.

To gather information from federal institutions for this year’s Annual Report, Canadian Heritage distributed questionnaires to government institutions of all sizes and mandates. The questionnaires aimed to identify and assess the federal government’s efforts in raising their workforce and society’s awareness and acceptance of Canada’s cultural diversity and inclusivity. This Report seeks to offer a snapshot of the activities undertaken by federal institutions in support of the operation of the Act , along with ensuring accountability and space for shared promising practices.

Of the 160 departments that received the questionnaire, 105 submitted a response. Fewer responses were provided this year due to a limited capacity in many institutions to complete the questionnaire resulting from COVID-19. Each questionnaire had 28 questions, and an additional 5 for Canadian Heritage Portfolio Institutions. The input received was reviewed, tabulated and analyzed based on the following four themes from Section 3.2 of the Canadian Multiculturalism Act .

  • Collection of Data: Efforts to collect and use data to design evidence-based policies, programs and practices that are sensitive and responsive to the multicultural reality of Canada.
  • Education and Awareness: Efforts to educate and raise awareness on cultural and racial diversity and the challenges these groups face, and efforts to promote social inclusion and cohesion.
  • Prevention and Solutions: Efforts to ensure the full and equitable access of individuals and communities of all origins.
  • Promotion and Celebration: Efforts to promote and celebrate the historical contribution and heritage of communities of all origins to Canadian society.

canadian tourism commission annual report

  • 65.63% of institutions responded to the questionnaire (or 105/160)

canadian tourism commission annual report

  • 464,241 employees represented in responses

Promising Practices Highlights

Collection of data.

canadian tourism commission annual report

  • 39.05% of institutions collect racial, ethnic, and religious diversity (other than for non employment purposes) to develop and/or improve internal and/or external policies, programs, practices and services

Education and Awareness

canadian tourism commission annual report

  • 86.67% of institutions have events that educate employees on diversity in the workplace

Prevention and Solutions

canadian tourism commission annual report

  • 14.02% - Average percentage of operational visible-minority
  • 3.27% - Average percentage of management visible-minority
  • 1.82% - Average percentage of executive visible-minority
  • 17.99% - Overall average percentage

canadian tourism commission annual report

  • 6,112 visible minority hires
  • 5,412 visible minority promotions

canadian tourism commission annual report

  • 34.29% - Percentage of institutions that work proactively with post-secondary institutions
  • 20.00% - Percentage of institutions that developed hiring programs for visible minorities
  • 14.29% - Percentage of institutions that developed mentorship programs

canadian tourism commission annual report

  • 22.86% of institutions allow for non-imperative staffing of visible minorities
  • 57.14% of institutions have in-house language training for staff

canadian tourism commission annual report

  • 75.24% of institutions had employees participate in anti-racism/anti-racial discrimination training

canadian tourism commission annual report

  • 98.10% of institutions had a mechanism to disclose issues of racism/racial discrimination

canadian tourism commission annual report

  • 55.24% of institutions translated policies, practices, and services into other languages other than English and French

canadian tourism commission annual report

  • 27.62% of institutions provide the public access to translators

canadian tourism commission annual report

  • 56.19% of institutions leverage the multilingual capacity, cultural competency, and cultural expertise of employees

Promotion and Celebration

canadian tourism commission annual report

  • 71.43% of institutions developed partnerships with stakeholders to promote multiculturalism

This report presents a sampling of the actions federal institutions took to demonstrate their commitment to the pursuit of policies and programs that reflect the essence of multiculturalism, diversity, and inclusion. Part 1 of the report focused on the actions of the core Multiculturalism Program, mainly in its policy advice function, community investments, public outreach and education, support to federal institutions, and international commitments. The Program also expanded its mandate through Canada’s Anti-Racism Strategy, including the creation of the Anti-Racism Secretariat, and partnerships with various partners to counter online hate and improve data collection and analyses, especially regarding the outcomes of racialized communities, Indigenous peoples, and religious minorities. Part 1 also highlighted key initiatives within Canadian Heritage that help to enhance the multiculturalism mandate through the support of diverse communities through initiatives including the Canada Media Fund, Digital Citizen Contribution program, Canada Cultural Spaces Fund, Canada Periodical Fund, and the Museum Assistance Program.

Part 2 of the report provides an overview of how federal institutions promoted policies, programs and practices that are sensitive and responsive to the multicultural reality of Canada. Illustrative examples within the themes of Collection of Data, Education and Awareness, Prevention and Solutions, and Promotion and Celebration only represent a small part of the collection of initiatives undertaken by federal institutions. The results indicate that institutions are taking action and innovating in the ways that they contribute to a more inclusive Canada. However, the results also indicate the need for continued improvement, especially in making institutions themselves more inclusive as well as putting the collection and use of data at the center of policy and program development. Ultimately, federal institutions that embrace multiculturalism, diversity, and inclusion will become stronger, and help make Canada a consciously more inclusive nation.

© Her Majesty the Queen in Right of Canada (2021) Catalogue No. CH31-1E-PDF ISSN 1497-7400

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Annual report - Canadian Tourism Commission : Iu82E

Describes the Commission’s activities for the year. It tells the story of the Commission’s efforts to reap the greatest returns on its marketing investments. It also provides a statistical overview of Canada’s tourism industry; describes the Commission’s marketing initiatives; partnerships; research programs; governance structure; and management analysis. Includes financial statements.

Permanent link to this Catalogue record: publications.gc.ca/pub?id=9.515683&sl=0

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Wxt language switcher, wxt search form, annual reports.

Annual reports provide information on the Canadian Dairy Commission’s tangible achievements in terms of plans, priorities, and anticipated outcomes, as stated in the corresponding business plan summary. Annual reports a tabled in Parliament each fall.

The reports below are the latest publications.

  • 2022-2023 Annual Report  (NEW)
  • 2021-2022 Annual Report
  • 2020-2021 Annual Report
  • 2019-2020 Annual Report
  • 2018-2019 Annual Report
  • 2017-2018 Annual Report
  • 2016-2017 Annual Report

To view older publications, please email [email protected] .

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The canada fund for local initiatives – india, nepal and bhutan (2024).

The High Commission of Canada to India is pleased to launch its annual call for proposals for the Canada Fund for Local Initiatives (CFLI).

Program description

The CFLI is a program designed to support small-scale, high-impact projects in developing countries, which align with Global Affairs Canada’s thematic priority areas for engagement. The program is directed at projects conceived and designed predominantly by local partners. Projects are selected and approved by the relevant Canadian embassy or high commission. The CFLI also serves to support positive bilateral relations between Canada and recipient countries and their civil societies, by deepening contacts and supporting local endeavours.

The average CFLI contribution is $20,000 to $50,000 Canadian Dollars (CAD$100,000 is the maximum allocation amount for a project eligible under CFLI). Consult the currency converter for local currency equivalents. Please note that all contributions are made in Canadian dollars and then converted to the local currency.

How to apply

  • All projects must be completed between the date of signature of the Contribution Agreement and February 28, 2025.
  • The deadline for submission is March 10, 2024, at 23:59 (GMT+ 6:00) .   Applications submitted after this deadline will not be considered.Proposals should be submitted electronically to: [email protected]
  • Only those proposals using the designated application form and including the required budget document will be considered.
  • For more information on the types of activities and costs that are eligible for CFLI funding, please refer to the list of CFLI approved activities and costs.
  • Proposals must be completed in English or French.
  • Project proposals must explicitly answer all questions in the CFLI project application form, including the required gender-based analysis. The proposed project budget should summarize the proposed activities and associated costs.
  • Applications will be assessed for approval on their merits by a selection committee.
  • Due to the large number of applicants, only the successful candidates will be contacted.
  • Alternatively, to request the application form in a Microsoft Word format please contact the CFLI coordinator by email at  [email protected] .
  • For questions about the application process, please contact by email at  [email protected] .
  • Project applications are kept on file at missions in accordance with Global Affairs Canada’s information management policies.
  • Projects spanning 2 fiscal years (April 2024 to March 2026) may be considered on an exceptional basis, depending on the project objectives and the complexity of activities.

Organizations eligible to apply for CFLI funding

Eligible recipients include:

  • Local non-governmental, community and not-for-profit organizations,
  • Local academic institutions working on local projects,
  • International non-governmental organizations working on local development activities,
  • Intergovernmental, multilateral and regional institutions, organizations and agencies working on local development activities,
  • Municipal, regional or national government institutions or agencies of the recipient country working on local projects, and
  • Canadian non-governmental and not-for-profit organizations that are working on local development activities.

The majority of CFLI funding is to be directed toward local civil society organizations (including non-governmental organizations) and other institutions working at the local level. Other entities, such as international, intergovernmental, multilateral and regional organizations may be eligible for funding, provided they are working with local partners and on local projects that are consistent with the objectives of the CFLI. Similarly, municipal, regional and national government institutions may receive funding, provided that their projects are essentially local in nature. The CFLI is always looking to fund innovative projects that deliver measurable results.

Thematic priorities

All projects must align with at least 1 of the following CFLI thematic priorities:

  • Inclusive governance, including diversity and 2SLGBTQI+, democracy, human rights and the rule of law.
  • Growth that works for everyone, including women's economic rights, decent jobs and entrepreneurship, investing in the poorest and most vulnerable, and safeguarding economic gains.
  • Gender equality and the empowerment of women and girls.
  • Human dignity, covering health, education and nutrition
  • Environment and climate action focusing on adaptation and mitigation, as well as on water management.

Gender-based analysis

In 2017, Canada adopted its Feminist International Assistance Policy to advance gender equality and the empowerment of women and girls as the most effective way to reduce poverty and build a more inclusive, peaceful and prosperous world. In alignment with this policy, the CFLI project application process now requires a gender-based analysis (GBA). The purpose of this change is to enhance the gender equality outcomes of the CFLI program.

A GBA will require applicants to:

  • consider how women, girls, men, and boys are affected differently by the problem their project is aiming to address, ensuring, at the same time, that the project does not cause harm
  • consult women and/or girls in the development of their project proposal
  • ensure that the views of those women and/or girls inform the project’s design

Note that consultations can include, but are not limited to, speaking to women and girls from the local community, women and other individuals who work for civil society organizations that have worked in the local community and female and male decision and change makers who have knowledge of the local community.

Inadequate completion of a GBA may affect the consideration of your proposal.

Eligible costs

The following project costs are eligible for CFLI funding:

  • accounting costs
  • administrative and overhead costs related to the project (overhead should not exceed 15% of total CFLI contribution)
  • advocacy and lobbying related costs
  • capital and/or operating expenditures related to the lease and/or purchase and/or building of infrastructure
  • civic education costs
  • conference and event expenditures
  • costs of services received by recipients
  • domestic travel expenses, using lowest fares possible but not exceeding full fare economy class
  • environmental assessment costs
  • facilities charges,
  • equipment rental, and/or purchase (only when the purchase is required to meet project objectives, reflects good value for money, and the recipient has a strong care-and-maintenance plan in place for equipment sustainability),
  • hospitality costs, excluding alcoholic beverages
  • installation, maintenance, shipping and/or transportation costs, including fuel,
  • computers and communication devices
  • lease or rental of vehicles
  • legal costs
  • medical costs
  • miscellaneous expenses integral to the project
  • outreach, communication and information dissemination costs
  • publishing costs
  • radio and television broadcast fees
  • research-related costs
  • salary costs, including stipends, relating to the project,
  • security costs
  • training and capacity building expenditures
  • translation and interpretation fees
  • vehicle and equipment operation, installation and/or maintenance
  • website development and related costs

The following costs are not eligible for CFLI funding:

  • nuclear technologies and facilities,
  • assistance to military or paramilitary organizations,
  • luxury goods,
  • direct fiscal support to a government,
  • seed funding and/or microfinance,
  • core funding or recurrent costs of an organization
  • expenses incurred prior to the signing of the contribution agreement, or after it expires

Thank you for your help!

You will not receive a reply. For enquiries, please contact us .

REG - Canadian PacificRail - Annual Financial Report

CANADIAN PACIFIC RAILWAY

Annual report Form 10-K

Canadian Pacific has filed with the U.S. Securities and Exchange Commission and Canadian securities regulators, their 2023 annual report on Form 10-K. This can be viewed at:

http://www.rns-pdf.londonstockexchange.com/rns/8416E_1-2024-2-28.pdf

A copy has been submitted to the National Storage Mechanism

28th February 2024

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.  END  ACSSEAFIAELSEDE

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    2022 Annual Report Introduction About Us Context Management Discussion & Analysis Financial Summary Governance Mandate Destination Canada is a federal Crown corporation owned by the Government of Canada, reporting to the Minister of Tourism and Associate Minister of Finance. Established under the Canadian Tourism Commission

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    FINANCIAL March 10, 2021 The management of the Canadian Tourism Commission (the "CTC") is SUMMARY responsible for the performance of the duties delegated to it by the Board Management responsibility of Directors. These include the preparation of an Annual Report together statement FINANCIAL with audited financial statements.

  8. Organization Profile

    The Canadian Tourism Commission (CTC) is a Crown corporation created by Parliament and wholly owned by the Government of Canada. It reports to Parliament through the Minister of Industry. CTC is Canada's national tourism marketing organization, leading the Canadian tourism industry in marketing Canada as a premier four-season tourism destination.

  9. Canada's Tourism Economy

    Destination Canada is a federal Crown corporation responsible for national tourism marketing and is governed by the Canadian Tourism Commission Act. It targets the following markets "where Canada's tourism brand leads and yields the highest ... 2019-20 Annual Report (6.01 MB, 76 pages), p. 15. [ Return to text] Ibid., p. 14. [ Return to ...

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    Destination Canada - Canada Tourism

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  12. PDF Canadian Tourism Commission

    In a response to the border closures and travel restrictions, the CTC shifted its marketing programs from international to domestic travel markets. This has resulted a reduction in spend in Q1 2021 when compared to the prior year in the following markets: Asia Pacific ($1.3M), Europe & India ($1.8M), North America ($850K) and Business Events ...

  13. Travel and tourism statistics

    The Tourism Statistics Program produces detailed statistics on travellers travelling to, from and within Canada, as well as information on travellers' characteristics and spending. The program also provides information to the Canadian System of Macroeconomic Accounts which produces data on travel and tourism expenditures, employment and gross ...

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  15. 2010 Annual Report

    2010 Annual Report - Canadian Tourism Commission - Canada. EN. English Deutsch Français Español Português Italiano Român Nederlands Latina Dansk Svenska Norsk Magyar Bahasa Indonesia Türkçe Suomi Latvian Lithuanian česk ...

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    Destination Canada provides intelligence, tools and resources that help the Canadian tourism industry reach domestic and international markets. ... View reports. Tourism's Big Shift. Download report. Destination Canada News. Announcement: Chief Financial Officer. Read more.

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  20. Annual reports

    Annual reports provide information on the Canadian Dairy Commission's tangible achievements in terms of plans, priorities, and anticipated outcomes, as stated in the corresponding business plan summary. Annual reports a tabled in Parliament each fall. The reports below are the latest publications. 2022-2023 Annual Report (NEW) 2021-2022 ...

  21. The Canada Fund for Local Initiatives

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  22. REG

    RNS Number : 8416E Canadian Pacific Railway 28 February 2024 CANADIAN PACIFIC RAILWAYAnnual report Form 10-KCanadian Pacific has filed with the U.S. Securities and Exchange Commission and Canadian securities regulators, their 2023 annual report on Form 10-K.

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    This Annual Report details the progress of the objectives set in the CTC's 2014-2018 Corporate Plan and showcases key activities and initiatives undertaken throughout 2014. The Annual Report serves as the principal mechanism for the Canadian Tourism Commission to report to the Parliament of Canada and