Newfoundland and Labrador Product Development Strategy

- 96-on its investment. The $300 million in non-resident spending in the province in 2002 directlygenerated an estimated $24 to $27 million in tax revenues for the provincial government in thatyear.In addition to non-resident visitors, Newfoundland and Labrador’s tourism activity includes thesome 3 million or so trips taken by residents of the province. Approximately 45% of these tripsare overnight trips, with the balance being same day trips of at least 80 km one-way. Totalspending by residents travelling in the province in 2001 was some $320 million. To the extentthat these in-province trips were made instead of travelling to other destinations, then there is afuture ‘import substitution’ effect, which means additional direct economic benefits to theprovince.So, investing in tourism is important for government, and lucrative too.It Needs More Than Marketing to Achieve Tourism Growth!Growing the province's tourism industry requires more than an investment in marketing. Itrequires a balanced approach to address a variety of product development issues, most of whichhave been identified in this report. These include access to the province (particularly air access),and the capacity of the province's tourism plant - particularly having the right type and quality offacilities and services for the types of visitors that the province is, and will be, attracting. Aswell, it means ensuring that we have a professional, well-trained tourism industry providing thetypes of experiences that visitors seek.The Other Aspects of Tourism that Warrants its SupportIn addition to generating tax revenues, there are many other aspects of tourism that warrant itssupport. These include:o Tourism brings new money into the province - tourism is an export industry with visitorsbringing new money into the province. These new dollars are important in generatingeconomic wealth and prosperity for Newfoundland and Labrador.o Tourism offers excellent growth potential for the province, and it is one of the few sectorsof the economy where there is good growth potential.o Tourism produces good jobs - across Canada, 35% of the jobs in tourism are inmanagement, supervisory and professional occupations. It also generates a lot of part-timeand seasonal jobs, which are of benefit, and offers opportunities for those seeking tosupplement incomes generated from resource-based employment.o Tourism revenue is distributed across all regions of Newfoundland and Labrador -visitors spend on average 10 days or so in the province, and during that time they travelaround, spending money in small communities and rural areas as well as in the larger servicecentres.THE ECONOMIC PLANNING GROUP of Canada Newfoundland & Labrador Tourism Product DevelopmentD. W. Knight Associates Strategy and Accommodation Needs Study