Churchill Tourism Economic Impact Study
Travel
Manitoba
Presentation: December 2024
About this project
Objectives
▪ To measure the size and value of Churchill’s tourism industry and its economic impact in Manitoba for the 2023 calendar year.
▪ To understand the drivers of growth and the barriers. What needs to happen to make Churchill a must-see, year-round international destination?
Outcomes
▪ Identify opportunities for development and barriers to future tourism growth.
▪ Help Travel Manitoba best direct marketing and development support to foster tourism in Churchill.
▪ Make a strong case to government and stakeholders about the value and scope of tourism in Churchill.
What we’ve done so far
Background research, visit and interviews
Operator survey
Community survey
Economic impact modeling
What’s next
Visitor survey
Churchill exceeded my expectations. (N=80 visitors)
Somewhat agree, 17% Neutral, 16%
Strongly agree, 66%
Somewhat disagree, 1%
Measuring Churchill’s Tourism
2023 economic impacts
Tourism in Churchill has an overall estimated annual impact on the Manitoba economy of $99.8 million (GDP).
Roughly 25,800 people visited Churchill in 2023.
That includes about 650 daytrippers.
Visitors to Churchill generate $21.9 million in tax revenue (including $10 million to the provincial government).
Visitors spent an estimated $88 million in the province, including $10 million on accommodations $13.5 million on restaurants $24 million in guides and experiences.
Churchill tourism generates an estimated 1,395 jobs in Manitoba (full-time equivalents, directly serving visitors and indirectly in spin-off and supporting industries).
Key economic impact figures (2023)
Visitors
Manitobans make up a slightly higher proportion of Churchill visitors now, but Americans remain the dominant market.
Visitor origins (according to operator estimates)
*Source: 2017 Economic Impact of Tourism in Churchill, Western Management Consultants.
Note:
Tourism operators and assets
Visitor Experience
Developments in visitor basics
Accommodations Food and Restaurants Tours Retail
▪ Added room capacity and more unique options.
▪ The character and quality of most rooms is largely unchanged since 2018.
▪ No larger/upscale/ fullservice property as recommended in 2018.
▪ Improved quality and diversity.
▪ Year-round food options lack northern fare that better reflect the Churchill experience.
▪ Hours of operation are an issue (as is capacity, labour needs).
▪ Tours are generally excellent and always evolving.
▪ The range of guided specialty experiences is significant.
▪ Only a handful of yearround options for souvenirs, gifts and locally made crafts and art.
▪ Unmet demand for locally made gifts and souvenirs at a variety of price points, particularly by Indigenous makers.
Key Trends
Community support for tourism
There is some skepticism among Churchill residents about the pace and impact of tourism, but the concerns are not as significant as suspected.
Areas of community support
▪ Tourism is vital to the economy.
▪ Tourism ensures Churchill has things other small, remote communities don’t.
▪ Tourism doesn’t generally hike the cost of living.
Areas
of community hesitation
▪ Tourism companies are not local, and locals don’t benefit.
▪ Development in Churchill is for tourists, not residents.
▪ The pace of growth is too rapid.
Tourism outlook and pace of growth
Business is strong and getting stronger.
Compared to 2019 before the pandemic, is your operation…
A little bigger/busier
A lot smaller/less busy
Unsure/not applicable
Residents say tourism is growing a little too fast. Even operators are somewhat concerned by the pace of growth.
Opinions on pace of tourism growth in Churchill
Seasonality
Churchill has made progress towards being a year-round destination, extending the high-to-medium season to eight months each year.
of operators are open this month
Aurora
Beluga
Bear
Your feedback: Seasonal breakdown
Of the estimated 25,000 visitors, what proportion come per season?
(Please use the Q&A function to tell us!)
25%
season, 30%
Opportunities to Grow
Next steps: Seasons
Go all in on northern lights.
70% of operators say northern lights season has a lot more potential to grow.
▪ Focus first on selling out the peak aurora season (then expand).
▪ Make Churchill an add-on destination or option for winter visitors on Canadian trips (e.g. Quebec City, Churchill, Whistler, etc.).
▪ Target Japan and other Asian markets (but less so Europe), in addition to the United States.
▪ Support the science.
Focus on higher-quality (and higherpriced) bear season experiences and products.
▪ Little additional capacity, but much more room to elevate the experience.
Experiment with September.
Two-thirds of operators say the shoulder season has a lot more potential to grow.
▪ September can – with luck – be a trifecta of experiences.
Next steps: Visitor types
Foster more fully and partially independent visitors.
There is more room to grow FITs and quasiindependent travellers, particularly as packages increase in price.
▪ Boost trip-planning services for FITs as well as flexible tour capacity in Churchill to accommodate these visitors.
Focus on values-based, educational and sustainable travel.
Visitors, especially younger ones, are looking for more – to learn, to connect with a community, to volunteer and help, to have a holiday with purpose.
▪ Existing educational amenities (PBI, the Northern Studies Centre) and the new Churchill Marine Observatory could be better packaged to appeal to these visitors and bolster Churchill’s reputation as a sustainable tourism destination.
Go easy on daytrippers.
▪ Lots of excitement but limited impact.
Next steps: Transportation
Elevate the on-board train experience now (while continuing to lobby VIA Rail for additional services and capacity).
Nearly one-half of operators said transportation was a lot worse in 2023 compared to 2017.
82% of residents said Churchill does not have good rail or air service.
▪ Opportunity to elevate the experience of train service and support new, small operators along the way.
▪ Food, entertainment, lectures, etc.
Transportation concerns among tourism operators The biggest worry A big worry
Fewer flights to Churchill/ changes to flight schedules
Cost of flights to Churchill
Quality of train experience
Frequency/reliability of train service
Next steps: Indigenous-led experiences
Foster additional Indigenous operators and Indigenous-led experiences.
One half of operators rank Indigenous experiences as their number one “best bet” and nearly all rank this in their top 3.
▪ Opportunities to support, mentor and partner with Indigenous residents who express interest and ideas.
▪ Cultural preparation/training prior to a tour.
Develop more locally made and Manitoba-made products in stores, especially from Indigenous makers.
Many people who visit Churchill favour unique, local, artisanal gifts and have the financial wherewithal to buy things they would never find elsewhere.
▪ Foster a more robust pipeline of local makers and small entrepreneurs.
Next steps: Arts and culture
Invest in arts and cultural experiences and events
▪ as a driver of visitation.
▪ as an add-on to core wildlife experiences.
▪ to build community support for tourism.
% of community members who rated this as a top-3 area of investment to grow tourism.
More sports and cultural events
More Indigenous programming/teachings
More food and beverage options
More staff housing
More/better shopping/retail
More outdoor activities
More/improved hotel rooms/accommodations
Equipment and rentals
Next steps: Accommodations
In the short term, coordinate on new, small- to medium-sized lodgings.
▪ Helping smaller operators size up, expanding their B&Bs into additional seasons or with additional rooms or properties.
▪ Support for smaller accommodations (and larger, for that matter) to improve their online booking and availability tools and their websites in general.
▪ Creating more unique, smaller-scale accommodations.
Longer-term, consider a more detailed needs assessment for a larger hotel.
Though some agree a larger luxury hotel is likely needed, more due diligence must be done to understand:
▪ The economic feasibility of a larger hotel, including its effect on other operators in the short term.
▪ Potential locations and land available.
▪ Staffing and supplying a medium-sized property, etc..
▪ Source of funding and creative approaches to financing, potential collaborations or consortiums (including with Indigenous nations).
▪ Regulatory barriers and solutions.
Next steps: Town amenities and access
Make better use of Churchill’s existing town amenities (without pushing out the locals).
▪ Look and feel of the town still needs work.
▪ Expand the use of quintessentially Churchill-y facilities for events, dinning, tours and other experiences –especially at the Town Centre Complex and Legion
Conduct an accessibility audit.
(While being realistic about the supply, building and weather challenges inherent to Churchill)
Next steps: Support for small operators
More support for small businesses.
▪ Training and content creation to help smaller operators build their direct-to-visitor marketing.
▪ Opportunities for pop-ups and other ways to get artists in front of visitors, including additional support for the Churchill Creative Collective.
▪ Training in business management and related skills (accounting, inventory, bookkeeping, pricing models, etc.)
▪ Address the labour and housing shortages more broadly.
% of operators who are very likely to invest in this over the next 3 years
New/additional equipment
Improvements to existing rooms and amenities
Energy efficiency/sustainability measures
Additional wildlife or outdoor tours/excursions
Technology
Staff housing
Expanded facilities
Additional/new land/property
Additional cultural offerings/programs
Additional accomodation capacity
Locally made souvenirs, art, etc.
Events
