SOMBA K'E/YELLOWKNIFE
The City of Yellowknife is in control of its tourism destiny but it comes with a price tag, city councillors heard last week.

Councillors were asked to consider spending up to $350,000 next year to establish a destination marketing organization to promote the city as a venue for conventions and to tourists.

Increasing tourism by 10 per cent annually could generate $10 million in spending, according to a report prepared by Tait Communications and Consulting Inc. and presented at last Monday's municipal services committee meeting.

"The city can influence this industry, the city can influence how many tourists come to Yellowknife, (the city can influence) what support is available to tourists who come here," said Leanne Tait during the report presentation. The company was the successful bidder to develop the destination marketing plan report at a cost of $48,867.

The city, by starting a destination marketing organization, can drive economic growth unlike with sectors such as mining or oil and gas, she said.

"This is one where you can make a difference and the economic impact is significant," she said.

Without increased funding, the city may fall behind other cities marketing themselves as locations to view the aurora, the report indicates.

For instance, the report notes that the City of Fairbanks in Alaska, with a population of 32,000, spent $3.3 million on destination marketing last year.

The organization would start with funding from the city and have its own staff member who would initially help push for the introduction of a visitor levy. That tax would be applied to hotel room bills and be used to fund the organization in the future. The levy is expected to provide about $1 million to $3 million to the organization starting in 2018 if legislation is put in place by the territorial government.

Once the levy is in place, Tait said, the city would not have to fund the organization and it could be folded into an organization such as the Northern Frontier

Visitors Centre. The centre was not involved in the creation of the report but was advised about the recommendation, Tait said.

The report indicates there are ways to improve the visitor experience to the city, such as signs in multiple languages or having tourism operators offer tour packages. As well, it suggests there are too many websites and information sources for visitors to go through when looking for things to do in the city.

Coun. Adrian Bell said he agrees with the idea but has difficulty with the funding aspect.

"The tricky part will be with timing and expenditures," Bell said. Having all its funding come from the visitor levy would be better, he said. Bell said councillors will have to weigh the idea against other priorities and ways they are considering to improve the visitor experience to the city.

Coun. Niels Konge expressed concern that adding a city-funded staff position to get the marketing organization going could see that role remain on city books.

"I think this is something better given to the experts already in the field," Konge said.

Cathie Bolstad, executive director of NWT Tourism, also spoke to councillors in support of such an organization. She said NWT Tourism is tasked with marketing all regions so the money - about $3.5 million for the 2015-16 fiscal year - gets spread thin.

"The NWT is a great tourism destination. You're the gateway. Be a leader," Bolstad said.

The report will be considered at city council today to be adopted only as information.

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