Question marks hang over NWT tourism recovery

By Derek Neary Northern News Services

The territorial government describes tourism as a “growth sector,” and recognizes that three years of Covid-19 pandemic disruptions have had a “damaging effect” on NWT tourism. The worst months of the pandemic saw 77 per cent of tourism operators temporarily closed with bookings haven fallen by more than 80 per cent for almost half of industry operators, according to the GNWT.

Because airport surveys were discontinued during the pandemic, that data is unavailable but the Department of Industry, Tourism and Investment (ITI) points to recovering air travel as a positive sign, although it admits that details relating to the types of travellers aboard those planes are unknown.

Tourism and parks will receive $16.8 million in funding from the GNWT in 2023-24, which is essentially the same as last year, but down from $20.7 million in 2021-22.

ITI has budgetted $3.66 million as a contribution to Northwest Territories Tourism for core funding and a tourism marketing plan in 2023-24 — that’s up from $3.34 million in 2022-23.

The Tourism Product Diversificaiton and Marketing Program came to the aid of 15 projects in 2021-22 by making available $861,537. The North Slave region took advantage of $290,567 for five initiatives. The Dehcho received $265,000, $132,603 went to the South Slave and $71,812 helped the Sahtu. That program has a budget of $1.15 million in 2023-24.

ITI issued $605,500 through the Community Tourism Infrastructure fund in 2021-22. The Yellowknife Historical Society put $200,000 of that towards its Mining Heritage Museum while the Town of Norman Wells, the next largest recipient, devoted $100,000 towards the expansion and development of Jackfish Lake.

In 2023-24, the GNWT has $411,000 budgetted for visitor information centres in the NWT, $350,000 set aside to help employ community tourism coordinators and $300,000 ready for community tourism infrastructure.

In 2021-22, with the pandemic practically putting a halt to tourism, ITI doled out $2.1 million in Tourism Restart Investment Program funds to close to 80 businesses and tourism operators. Another $1.7 million benefitted close to 40 NWT tourism businesses through the Pandemic Relief Extension Program.

A third pandemic program, Support for Tourism Accommodation Relief, provided an additional $935,569.

Marketing plan Spectacular NWT’s 2023-24 marketing plan sets out eight key objectives: grow tourism visitation and tourism-related expenditure in the NWT; expand destination and brand awareness of the NWT; encourage regional distribution of the visitor economy benefits; expand awareness of Indigenous experiences within the NWT; promote the NWT as a meetings, conferences and incentive travel destination; ensure effectiveness and high engagement in media marketing channels — earned, paid, shared, and owned; build awareness of the NWT, develop relationships, instill resilience and and support in travel trade networks; and ensure marketing.

The plan focuses heavily on marketing through various types of media, particularly digital.

Some of the points of emphasis include building on the Spectacular NWT brand to grow domestic and U.S. markets; telling stories that engage as part of content marketing; leading with the NWT’s best attractions and experiences; forming strategic partnerships to maximize impacts and strengthening how research and results drive decision-making.

Among the challenges identified within the NWT tourism sector are costly and limited access to the NWT; lack of tourism infrastructure, products and services; the limited digital presence of some NWT tour operators; and an undersized tourism workforce.

The industry champion plans to encourage repeat visitation, leverage the marketing efforts of national tourism partners, reduce travel barriers by simplifying travel to and within the territory and create more opportunities for tourism businesses to be successful.

The City of Yellowknife is investing $75,000 in a new tourism strategy, which includes signing a contract with Vancouver-based InterVISTAs Consulting Inc. to develop a new strategic plan for the NWT capital. The municipality plans to hold engagement sessions with the public as well as interview representatives in the tourism industry and staff from various levels of government to get an idea of what should be included in the new plan.

The former plan expired in 2019. The new strategy will “provide a post-Covid outlook for Yellowknife and the surrounding area and establish a vision for the future,” according to a statement from the city.

The municipality and the Department of Industry, Tourism and Investment each put up half the funds for this project.

A SNAPSHOT OF NWT TOURISM IN 2019-20, PRIOR TO THE PANDEMIC

Aurora viewing

Number of visitors: 37,100

Percentage of total visitors: 31.5%

Total visitor spending: $59.8 million

Percentage of total visitor spending: 29.2%

Average spend per trip per visitor: $1,611.86

Business travel

Number of visitors: 32,300

Percentage of total visitors: 27.5%

Total visitor spending: $78.6 million

Percentage of total visitor spending: 38.4%

Average spend per trip per visitor: $2,433.44

Touring

Number of visitors: 20,100

Percentage of total visitors: 17.1%

Total visitor spending: $ 20.5 million

Percentage of total visitor spending: 10%

Average spend per trip per visitor: $1,019.90

Visiting friends and relatives

Number of visitors: 15,000

Percentage of total visitors: 12.8%

Total visitor spending: $ 10.4 million

Percentage of total visitor spending: 5.1%

Average spend per trip per visitor: $693.33

Outdoor adventure

Number of visitors: 7,300

Percentage of total visitors: 6.2%

Total visitor spending: $14.4 million

Percentage of total visitor spending: 7.0%

Average spend per trip per visitor: $1,972.60

Fishing

Number of visitors: 5,300

Percentage of total visitors: 4.5%

Total visitor spending: $13.7 million

Percentage of total visitor spending: 6.7%

Average spend per trip per visitor: $2,584.91

Outfitting

Number of visitors: 520

Percentage of total visitors: 0.4%

Total visitor spending: $7.2 million

Percentage of total visitor spending: 3.5%

Average spend per trip per visitor: $13,846.15

*Indigenousexperiencesisanotheracknowledgedtourism category,butnoequivalentstatisticswereprovidedinthe SpectacularNWT’s2023-24marketingplan.

Source: Spectacular NWT