City plans tourism promotion
Funding still required before destination marketing organization kicks off
Shane Magee
Northern News Services
Wednesday, March 8, 2017
SOMBA K'E/YELLOWKNIFE
Outcrop Communications has been picked by the city to help establish a destination marketing organization which will promote the capital as a tourism and conference location.
A conceptual Yellowknife tourism advertisement included in a report by Tait Communications last year shows a new marketing promotion aimed to lure tourists and conferences here. - graphic courtesy of City of Yellowknife |
A similar but separate organization, called NWT Tourism, already markets the entire territory. The city's version would focus on promoting just Yellowknife through things like a website, social media and other advertising.
Outcrop is expected carry out research and other preliminary work to get the organization started, including lobbying the GNWT to amend legislation to allow a fee to be imposed on hotel room bills. Money raised with that fee would pay for the marketing organization in future years.
The marketing organization would begin as part of the city bureaucracy but transition outside city government once the tax is in place. However, work is on hold until funding is secured.
The city has applied for money from Canadian Northern Economic Development Agency (CanNor) to pay for about 80 per cent of the marketing organization's two-year, $700,000 price tag.
"We are really looking forward to having CanNor's contribution finalized, because it's a very generous part of the project," said Nalini Naidoo, the city's director of communications and economic development, in an interview last month.
An agreement was not yet in place as of last week.
Outcrop was selected after a competitive bid process earlier this year with a bid of $133,290.
Objectives of the marketing organization outlined in report by Tait Communications given to council last year include 10 per cent annual increases in conference attendees and city visitors.
The report indicated the city has seen a five-per-cent growth of visitors annually on average with about $98 million in economic activity in 2014.
Adding 10 per cent more would mean $10 million in additional spending per year, the report estimates.
The city's 2014 tourism strategy recommended creating the destination marketing organization.
The promotion organization was one of the larger items included in the city's 2017 budget.
Coun. Adrian Bell argued the spending can help the city prepare for a "post-diamond economy."
Coun. Niels Konge argued in December it was too soon to budget the money given the GNWT's slow movement on the hotel tax issue.
Coun. Rebecca Alty tried to have the spending cut because the budget for the marketing organization appeared to be too small.
"I don't think there's enough funding to even move the dial," Alty said at the time.
Her motion failed.
The Tait report projects using about 50 per cent of hotel room tax revenue – between $1 to $3 million annually – to fund the organization's operations once the tax is in place.
Coun. Julian Morse said it is time for the city to boost its tourism efforts.
"When we're talking about getting into a post-diamond economy, we're getting there now," he said.
Outcrop's work, according to city records, is expected to be complete in March next year.
