Strategic Context

The Ministry of Tourism, Sport and the Arts was formed in June 2005 and work has been ongoing since its inception to consolidate its working teams and structures. Although the ministry is newly established, it has developed a unifying vision for its diverse areas of business.

Tourism and Resort Development

British Columbia's real GDP grew by a solid 3.5 per cent in 2005, slightly faster than the 3.4 per cent growth rate forecast in the September Budget Update. Strong consumer spending and investment helped make B.C.'s growth the second fastest in the country, behind Alberta's 4.5 per cent expansion. B.C.'s economic growth was accompanied by a marked drop in the unemployment rate and strong labour income growth, supporting consumer spending and residential construction growth. Visits to the province were up and Tourism BC estimates that $9.78 billion in tourism revenue was generated in B.C. in 2005 as compared to $9.47 billion in 2004.

The largest contributor to these revenues was domestic tourism (57 per cent), composed primarily of contributions from B.C. residents, followed by those from the Prairies and Northern Canada, and finally those from Eastern Canada. The second most important contributor to provincial tourism markets was the U.S., primarily California and Washington, estimated to deliver 24 per cent. Overseas visitors contributed the remaining 19 per cent.

Overseas tourists, particularly from the Asia-Pacific, represent an under-tapped tourist market, as well as a trade and commerce market. Canada has secured an agreement in principle with China to acquire Approved Destination Status, which allows countries to receive Chinese tourist groups through outbound travel agents. This represents a potentially significant new tourism market, with an estimated potential of 500,000 visitors to Vancouver alone by 2015.

Prior to the reporting period, the United States Department of Homeland Security released plans requiring passports or acceptable alternative documents for anyone entering the United States after 2007, including its own citizens. The ministry has been actively working with the federal government, a number of other provinces and several U.S. states to address this issue. It has potential implications to adversely affect tourism from the U.S. to Canada as well as implications for trade and commerce.

Regardless of the final decision regarding U.S. border security, our challenge is to provide an experience that will encourage tourists from around the world to come here. The ministry continues to work with partners and stakeholders on both sides of the border to best address how to mitigate the impact this new requirement may have on B.C.'s tourism industry.

The continuing rise of the Canadian dollar, with the U.S./Canada exchange rate averaging 86 per cent over the September 2005 – March 2006 reporting period, may also discourage tourism from the U.S.

Unexpected events, such as natural disasters, epidemics and major transport incidents, also bring uncertainty for tourism. For example, the sinking of the Queen of the North poses challenges to tourism.

B.C. is a rich and diverse province, with many natural and cultural resources that can enhance tourism and resort development. The potential economic benefits for investors and communities are substantial, particularly in rural areas. Resort development faces challenges such as conflicts over land use, environmental concerns, First Nations issues, and competition for natural resource access.

Many First Nations are interested in tourism and resort development but may need to enhance their capacity — resources, capital or experience — to move forward. To identify and facilitate tourism and resort development opportunities, the ministry has established an Aboriginal Tourism and Resort Development Manager to support First Nations to network with resort developers, investors and other key provincial and federal agencies such as Partnerships BC.

The 2010 Olympic and Paralympic Winter Games

Canada hosted the Olympic Games in 1976 and the Winter Olympic Games in 1988 but remains to be the only host country never to win a gold medal. The ministry has been involved in collaborative efforts to better understand and improve sport excellence in order to increase Canada's likelihood of winning its greatest number of medals in 2010 and placing among the top three medal winners at the 2010 Olympic and Paralympic Winter Games.

B.C.'s successful bid to host the 2010 Games has already delivered benefits to the sport sector, including more than $35 million in one-time funding for the sport system as well as the development of the SportsFunder lottery, which supports amateur sport and physical activity. These new resources raise expectations of athletic excellence and will require sustainability strategies to ensure continued success after 2010.

The 2005 Olympic Winter Games, held in Turin, Italy, provided the opportunity to profile B.C. The province hosted international officials and media at special events at BC/Canada Place to promote B.C. and set the stage for the 2010 Games.

Sport and Physical Activity

Sport and physical activity are significant economic drivers. Sporting events also have major spin-off benefits. For example, the economic impact of the recent World Curling Championships in Victoria is estimated at $20 million. Economic impact projections for the 2008 North American Indigenous Games in the Cowichan Valley exceed $20 million, while the World Police and Fire Games set for 2009 in Burnaby should generate more than $60 million in economic activity. Sport and physical activity also represent the second largest area of volunteer participation in Canada, accounting for 11 per cent of B.C.'s total volunteer corps.

British Columbia is Canada's most active province, but almost two million citizens are not active enough to derive health benefits from their participation in physical activity. Sport is a vehicle to increase active participation and promote health and well-being. The provincial government has set a target to increase the proportion of B.C.'s population that is physically active by 20 per cent by 2010. This is especially important given provincial changing demographics, the significantly higher health care costs associated with an inactive, aging population, and current trends in childhood obesity.

The ministry's relationship with the provincial sports sector is strong and positive, with a shared vision. As a result, B.C. is generally acknowledged across the country as a sport and physical activity innovator and leader with programs like ActionSchools!BC, Active Communities, SportSafe and SportWeb leading the way.

The ministry will continue to seek partnerships to bring more resources to sport and recreation in B.C. to sustain the success of the current system and physical activity rate, as well as providing support and direct interventions to make British Columbians more active.

Volunteers

B.C. has 20,000 not-for-profit or voluntary organizations, making up 13 per cent of the 161,000 across Canada. These organizations collectively produce $11 billion dollars in annual revenues. If B.C.'s 1.5 million volunteers were paid minimum wage for the 114 million hours they contribute annually, it would cost nearly $1 billion per year.¹ These data underline the need for government to build strong relationships with volunteer organizations, and to foster continued capacity in the volunteer sector. The ministry's efforts with regard to programming for volunteers were still under development over the reporting period.

Arts and Culture

Arts and cultural activities in British Columbia are significant contributors to the province's economic prosperity. Economic output in 2001 exceeded $4.2 billion, an increase of 24 per cent over 1996.² More than 78,000 British Columbians were employed in the cultural sector in 2001, and cultural tourism is projected to increase at an annual rate of 15 per cent through 2010.

Arts and culture are central to the development of a competitive, creative, knowledge-based economy. The diversity of the province's population provides an opportunity for unique and distinctive cultural expression, reflecting the influences that have shaped British Columbia.

1	2003 National Survey of Non-profit and Voluntary Organizations, in British Columbia.
2	Statistics Canada: Economic Contributions of the Cultural Sector – A Provincial Perspective, 2004.

Motion Picture Industry

B.C.'s motion picture production industry had a prosperous year in 2005 and the province was successful in attracting $1 billion in foreign production. However, the increasing value of the Canadian dollar and growing competition from other jurisdictions, combined with the highly mobile and cost-sensitive nature of the industry, could affect B.C.'s future competitiveness and market share. To remain competitive, B.C. must continue to offer excellence, both in terms of quality and cost, and provide producers with access to the best crews, locations, tax incentives, equipment and infrastructure in the world.

The future success of the motion picture sector, an important contributor to B.C.'s economy, will be shaped by the industry's ability to work collaboratively, offer exceptional value and develop innovative strategies that are flexible enough to respond to a rapidly changing global marketplace.

BC 2008

In 2008, B.C. communities will be united in celebrating B.C.'s 150th anniversary as a Crown Colony. This is a tremendous opportunity to raise awareness about our shared heritage, cultivate a sense of pride and reveal our unique history to British Columbians and visitors. The ministry will be leading the way in engaging other ministries and Crown agencies, local communities, the federal government, non-profit organizations, First Nations and the private sector in supporting this milestone as a unique opportunity to showcase the heritage, arts and culture of the province.

Heritage

Government's role in heritage has shifted from direct provincial ownership and management of heritage sites to long-term operating agreements with third parties and ownership by communities. There are challenges regarding operational sustainability and stewardship of heritage resources. The ministry strives to address these issues by providing better opportunities for heritage stewardship training and networking for site managers, and funding to address high priority capital maintenance issues at several properties. The ministry also worked to build heritage management capacity at the local level. The ministry made use of the Historic Places Initiative funding (a Federal-Provincial contribution agreement) to provide training opportunities and other community project opportunities that advance both federal and provincial heritage goals. Finally, the ministry continued work to position heritage conservation in the context of broader policy goals related to community sustainability and revitalization, by providing heritage-related content to the upcoming World Planners Congress held in Vancouver, June 7–20, 2006.

Archaeology

B.C. has one of the most diverse and complex archaeological histories in Canada, dating back over 12,000 years. The Heritage Conservation Act encourages conservation and public appreciation of this valuable legacy.

The ministry works to ensure resource managers, land managing agencies, developers and property owners have adequate archaeological information and advice to prevent destruction of sites. The ministry is also increasing its interaction with local governments to encourage their participation in advising their constituents about the need to take archaeological sites into account in their development activities. This enhanced emphasis on educating other governments, agencies and the public will increase the protection afforded to these sites.

The archaeological permitting process, in conjunction with archaeological site information, allows forestry, mining and land development to proceed while protecting a valuable provincial resource. There has been a steady increase in permits issued each year. While this increase can be viewed as indicative of sites being protected, this growth increases demand on resources. That can result in delays in issuance and a resulting delay in economic activity. The ministry worked to mitigate this risk by streamlining the permitting process and providing ongoing advisory sessions with external consultants to reduce errors, and therefore delays in processing, and to develop mechanisms to expedite permitting.

Internal Factors

As a newly created ministry, staffing in 2005/06 was significantly below the optimal levels required for effective program and service delivery. Addressing this will be a priority in the coming year.

Linkage to the Five Great Goals

The Government's five great goals for a golden decade are:

Great Goal 5: Create more jobs per capita than anywhere else in Canada.

The ministry plays an instrumental role in creating jobs and economic prosperity by working with partners to maximize opportunities and benefits related to hosting visitors, athletes, media and others leading up to, and during, the 2010 Olympic and Paralympic Winter Games. The ministry is also working with key partners to develop and implement a long-term, sustainable plan for growth in the tourism industry and to double tourism revenues by 2015. Specific activities include ongoing implementation of the BC Resort Strategy, which will promote new resort investments, and the development of a cross ministry Charter for Tourism Growth. This will strengthen government partnerships in support of tourism and facilitate the development and expansion of resorts, adventure tourism, outdoor recreation and the rest of the B.C. tourism sector.

The ministry is working to enhance the creative economy by investing in culture, sport and heritage infrastructure and improving integration with a broader tourism strategy. It will work with Aboriginal communities to support the Aboriginal Cultural Tourism Blueprint Strategy for B.C. Participants in this strategy include the Ministry of Aboriginal Relations and Reconciliation, the Ministry of Economic Development, the Aboriginal Tourism Association of BC, Tourism BC and other stakeholders.

Great Goal 4: Lead the world in sustainable environmental management, with the best air and water quality, and the best fisheries management, bar none.

The ministry supports this Great Goal through its integrated management of nature based recreation and tourism, including heli-skiing, mountain biking, wildlife viewing, resorts and lodges. The ministry also fosters a shared commitment to the stewardship of British Columbia's heritage and archaeological sites through education, local capacity development, work with First Nations, regulation, and provision of accessible information via the Provincial Heritage Register. Encouraging preservation and revitalization of older buildings and districts also supports efforts to ensure sustainability.

Great Goal 2: Lead the way in North America in healthy living and physical fitness.

The ministry supports this Great Goal by facilitating British Columbians' access to and participation in sport, recreation, arts and cultural activities. The ministry works in partnership with many other bodies to promote basic physical skills such as running, jumping and balance that contribute to life-long wellness. For example, the ministry encourages active living and physical fitness by working with the Ministry of Health on programs such as ActNow BC, as well as with the private sector and other levels of government. The ministry also manages a system of recreation sites and trails across the province, supporting outdoor activity for British Columbians as well as visitors.

Great Goal 1: Make British Columbia the best-educated, most literate jurisdiction on the continent.

The ministry supports this Great Goal in several ways. First, it encourages involvement in the arts, which has been shown to improve intellectual capacity, learning outcomes and creative thinking. All are important factors in developing the educated citizenry essential to a knowledge-based society. Second, it encourages involvement in sport and fitness activities, which support physical literacy and generate long-term health and social benefits. Third, it works to preserve and promote heritage, cultural and archaeological sites, historical commemorations and celebrations, providing valuable learning opportunities for young and old alike.

Great Goal 3: Build the best system of support in Canada for persons with disabilities, those with special needs, children at risk, and seniors.

The ministry's investment initiatives such as Aboriginal Youth FIRST, Sport Participation Program and BC Seniors and BC Disability Games support access to programs for populations traditionally under-represented in sport and recreation. Its support for the province's volunteer network will also help to foster strong systems of support.

Cross Ministry Initiatives

The ministry contributes to a number of important cross ministry initiatives:

A New Relationship with First Nations

The ministry, in conjunction with other agencies, has a primary and influential role in funding programs and services that support stronger relationships with, and enhance the well-being of, Aboriginal people. This involves working closely with the Ministry of Aboriginal Relations and Reconciliation. Specific initiatives include:

Mountain Pine Beetle

The ministry assists communities affected by mountain pine beetle infestation to make the transition to a more diverse, creative economic base through enhanced arts, cultural, heritage, sport and tourism opportunities, in collaboration with the Ministry of Economic Development and other partners. The ministry also works in collaboration with the Ministry of Forests and Range both to remove hazards to trees in forest recreation sites, and to reforest those sites impacted by mountain pine beetle.

ActNow BC

ActNow BC combines cross-government and community-based approaches to address common chronic disease risk factors, through programs and initiatives that support healthier eating, physical activity, tobacco reduction and healthy pregnancies. As a partner, the ministry funds programs and services to increase levels of physical activity through:

2010 Olympic and Paralympic Winter Games

The ministry is supporting the 2010 Olympic and Paralympic Winter Games in a variety of ways, including enhancing B.C.'s sport system, developing and implementing tourism strategies, and showcasing B.C.'s arts, culture and heritage to the world. These initiatives will not only contribute to the success of the Games but will also have broader, longer-term benefits. The ministry works with partners to deliver programs and services that enhance sport and recreation systems, tourism strategies, and sustainable arts and culture initiatives. These include: