2020 REPORT TO THE COMMUNITY
VISION KELOWNA AND THE REGION WILL BE INTERNATIONALLY RECOGNIZED AS THE FOUR-SEASON, OUTDOOR DESTINATION OF CHOICE IN NORTH AMERICA BY 2024.
MISSION
STRATEGIC PILLARS
To support and market the tourism destination of Kelowna (census metropolitan area) in a sustainable manner that strengthens the local economy and enriches quality of life; and to seek funding opportunities and manage funding for the support and marketing of tourism in the Kelowna census metropolitan area.
• Increase year-round, high value visitation.
BRAND PROMISE In Kelowna, you will explore, sip, play, and be fully centred when you find yourself surrounded by the best the Okanagan Valley has to offer, all within easy reach.
• Grow in-destination spending. • Support sustainable growth of the destination. • Ensure organizational value, excellence, and viability.
LAND ACKNOWLEDGEMENT We respectfully acknowledge that we live, work, and play on the traditional, ancestral, and unceded territory of the syilx/ Okanagan people.
2020 A YEAR LIKE NO OTHER After years of strong steady growth, Kelowna’s tourism industry celebrated a benchmark year in 2019, which included successes like the highest-ever average hotel occupancy on record. With several major events and conferences scheduled to take place, 2020 was set to be another exceptional year, with tourism continuing to contribute greatly to the local economy. However, in March 2020, the COVID-19 global pandemic hit with full force. Implemented restrictions included a complete shutdown of travel, as well as a halt to gatherings and events, which significantly impacted local businesses and our tourism economy. Now, more than a year later, we are still grappling with continued restrictions on travel, gatherings and events, dining, and more. While these measures are needed to reduce transmissions and contain the virus, they continue to have devastating economic impacts on the tourism industry, which was one of the first and hardest hit.
40.8%
AVERAGE HOTEL OCCUPANCY (-24.4 pp)*
While the past year has been unlike any we’ve seen before, local tourism businesses have demonstrated their resiliency and innovation, while also showcasing the exceptional collaborative efforts that are part of what makes Kelowna unique. While financial support for the tourism industry has been rolled out from all levels of government and residents have shown their support for the community, it is evident that without visitors our local businesses do not have the same opportunity to generate revenue and remain financially viable, which ultimately creates uncertainty about the future. With our destination marketing efforts limited due to travel restrictions, a new focus, new partnerships, and a new way of supporting our destination was necessary. These efforts form the foundation required to rebuild and recover in the years ahead.
$153.73
$62.68
1,868,240
737,447
HOTEL AVERAGE DAILY RATE (ADR) (-6.2%)*
OVERALL OVERNIGHT TRIPS TO KELOWNA (+5.1%)***
HOTEL REVENUE PER AVAILABLE ROOM (REVPAR) (-41.3%)*
PASSENGERS THROUGH KELOWNA INTERNATIONAL AIRPORT (YLW) (-63.7%)**
* STR Limited **Kelowna International Airport (YLW) Facts & Statistics *** Telus Insights. TELUS has implemented industry-leading Privacy by Design standards to ensure that privacy is not compromised. All the data analyzed by TELUS Insights is strongly de-identified, meaning it cannot be traced back to an individual. It is also aggregated into large data pools to reveal massmovement patterns and trends and extrapolated to be representative of the total Canadian population as a further means of ensuring that privacy is fully protected at all times. For further information, please visit: telus.com/insights. Image credits: Front cover: Tantalus Vineyards | Shawn Talbot Current page: Myra Canyon trestles | Destination BC & Kari Medig
MESSAGE FROM THE PRESIDENT & CEO
Lisanne Ballantyne, President & CEO Credit: Tourism Kelowna
No one could have anticipated the year that was 2020. As a tourism community, we began the year poised for success, ready to collectively serve two million visitors and generate two billion dollars in new economic impact for the region. As the extent of the global pandemic quickly became apparent, so did the need for the Central Okanagan tourism and hospitality industry to come together and prove the hard truth of the famous quote “It’s not what happens to you, but how you react to it that matters.” We responded quickly, developing The Way Forward, Tourism Kelowna’s three-stage industry recovery action plan that allowed us to continue providing marketing and visitor services despite significantly reduced budgets. When provincial travel restrictions prevented us from marketing in our regular geo-markets for most of 2020, we instead redirected our efforts to hyper-local awareness campaigns that continue even today. Despite travel restrictions, Kelowna’s visitation numbers increased in 2020 over the previous year to more than 1.8 million. However, we also saw a disturbing change in consumer behavior,
as winter occupancy decreased by 34% and average hotel occupancy fell 24 points to 41%. We will be monitoring this trend closely in coming months as we hopefully move into economic recovery. Proving that how we react matters, 2020 was also an incredible year of innovation, perseverance, and integrity. Tourism Kelowna directly serves over 400 stakeholders and supports the larger visitor economy. Every day we hear and promote stories of creative business promotions, extraordinary frontline staff, and tourism operators helping to rebuild our community with service and heart. We hope you will agree that it was an unprecedented year, but one with successes to celebrate and new learnings that will ultimately move us forward. As always, thank you for the privilege of working together with you to serve this beautiful destination that we all know and love.
Lisanne Ballantyne President & CEO Tourism Kelowna
THE WAY FORWARD: OUR RESPONSE TO COVID-19 Our first stakeholder communication regarding COVID-19 was sent out at the end of January, as news of the global health crisis was making its way around the world and the first cases of the virus were identified in Canada. As the pandemic progressed and severe restrictions were imposed, we responded with the release of our recovery action plan, The Way Forward. We have cycled back and forth through the phases of this plan, as needed, as restrictions have changed. We hope to move into phase three of the plan in 2021. Boating on Okanagan Lake Credit: Nic Collar Film
Phase 1: Preserve
Estimated During travel restrictions. Timing
Phase 2: Push
Phase 3: Promote
When non-essential travel restrictions are lifted.
As additional travel restrictions are lifted.
Key Focus
PRESERVE and protect visitor economy, help businesses persevere, promote awareness of local tourism businesses and industry.
PUSH to heavy-up targeted media campaigns, focus on short-haul markets for immediate conversions, revenue flow to begin recovery.
PROMOTE destination marketing again to restore visitation and economic impact, rebuild awareness and desire to travel.
Key Deliverables
• Link local businesses with
COVID-19 resources.
• Re-open Kelowna Visitor Centre after initial shutdown.
• Expand Western Canada campaigns.
• Connect consumers (residents and visitors, when appropriate) to local businesses.
• Launch BC and AB media campaigns as travel demand deemed safe again.
• Resume remaining national and U.S. marketing tactics paused in spring; staged return to key markets, as travel restrictions allow.
• Resume meeting, conferences, • Expand online retail store and events marketing tactics. consignment sales. • Host virtual townhalls. • Continue meeting, conferences, and events business development.
• Pursue partnerships with nearby communities for Okanagan-wide campaign.
• Continue stakeholder survey • Reconnect to Destination BC partnered programs. feedback on COVID-19 impact. • Participate in Central Okanagan Regional Economic Task Force.
“On behalf of the Kelowna Hotel Motel Association, we would like to thank Tourism Kelowna for their extraordinary efforts in 2020 at responding to the COVID-19 pandemic, while continuing to promote our destination in an appropriate manner. Their timely response in moving from the traditional role of a destination marketer to #exploreKelownalocal provided a needed boost to local operators at times that out-of-area visitors could not be welcomed. Their flexibility, innovation, and responsible management has also ensured they are able to operate from a position of strength as soon as it is time to market the Kelowna area to visitors from across the country and around the world. Our group of hotel leaders is looking forward to rebuilding visitation in collaboration with Tourism Kelowna.”
Natalie Corbett, President | Kelowna Hotel Motel Association
KEY RESULTS & ACCOMPLISHMENTS Over the course of the year, our team executed the key deliverables from our recovery plan, in alignment with our strategic pillars, and celebrated numerous accomplishments. SUPPORTING SUSTAINABLE GROWTH OF THE DESTINATION
INCREASING YEAR-ROUND, HIGH-VALUE VISITATION • Launched the Kelowna is Ready marketing campaign when travel restrictions were eased in spring 2020. • Continued business development by connecting with meeting and event planners through weekly emails and virtual events— like our Virtual Destination Showcase—and by collecting valuable feedback from our group of Recovery Advisors. • Participated in the Destination Canada (DC) Roadshow, in alignment with our Economic Sector Strategy, to host a targeted group of media and DC representatives in Kelowna.
• Achieved accessibility certification for the Kelowna Visitor Centre from the Rick Hansen Foundation.
• Celebrated Kelowna being nationally recognized by the Canadian Sport Tourism Alliance (now Sport Tourism Canada) as the top mid-size city in Canada for sport hosting for the second year in a row.
• Hosted virtual town halls and sent out COVID-19 impact surveys to stakeholders and residents.
• Encouraged residents to support local through various pro motions and campaigns, including Show Your Love for Kelowna Day.
• Developed and implemented a robust COVID-19 Safety Plan at the Kelowna Visitor Centre.
• Expanded our retail program and online store to support more than 80 local businesses and suppliers, who received more than $42,000 through our consignment program. • Added content and enhanced interactivity on our website to make it easier to connect consumers with open businesses. • Amplified stakeholder content and created original content for our social media channels with ways to support local, to explore Kelowna safely, and to plan for future travel. • Worked with local influencers and partners to drive home the importance of supporting local and to inspire future travel.
82% 93%
• Repositioned the Kelowna Visitors’ Guide to digital tools that provide value to consumers and drive traffic to local businesses. ENSURING ORGANIZATIONAL VALUE, EXCELLENCE, AND VIABILITY
GROWING IN-DESTINATION SPENDING
OF STAKEHOLDERS WERE SATISFIED OR EXTREMELY SATISFIED WITH TOURISM KELOWNA’S OVERALL PERFORMANCE.*
• Addressed our program fees and the struggles of local busi- nesses by offering a 12-month extension of program benefits for existing stakeholders, program upgrades for stakeholders who remitted MRDT or DMF, and a Relief Advertising Program for tourism-related businesses that were not already linked to Tourism Kelowna.
77%
• Promoted health and safety with the launch of Community Safe Travel Tips & Hand Sanitizer Stations, in partnership with the Downtown Kelowna Association and thanks to sponsor- ship from FortisBC. • Liaised with regional, provincial, and national destination organizations to collaborate with industry members, to support advocacy efforts, and to coordinate destination marketing recovery efforts.
OF STAKEHOLDERS WERE SATISFIED OR EXTREMELY SATISFIED WITH THE OVERALL COMMUNICATION REGARDING IMPACTS RELATED TO COVID-19.*
OF VOLUNTEERS SAID THEY WOULD RECOMMEND VOLUNTEERING AT TOURISM KELOWNA TO A FRIEND.**
90%
63%
OF STAKEHOLDERS WERE SATISFIED OR EXTREMELY SATISFIED WITH THE MARKETING ACTIVITIES RELATED TO COVID-19.*
OF VOLUNTEERS FELT THEY WERE PROVIDED WITH ADEQUATE SUPPORT TO FEEL PHYSICALLY AND EMOTIONALLY SAFE DURING THE PANDEMIC.**
*2020 Tourism Kelowna Stakeholder Survey | ** 2020 Visitor Experience Volunteer Survey
TOURISM KELOWNA OPERATING STATEMENT
Municipal and Regional District Tax (MRDT)/ Destination Marketing Fund (DMF) Mt. Boucherie Estate Winery Credit: Wines of British Columbia
ADMINISTRATION & FINANCE
Retail/Other
Partner Advertising
6%
• Daily management of the re-forecasted operations budget while applying for and managing administration of COVID-19 government grants and relief subsidies. • Managing a unique year of revenue analysis and reporting requirements associated with the Municipal and Regional District Tax funding. In addition, the team maintained Tourism Kelowna’s history of delivering a clean annual audit report of all financial statements, risk management, and balance and controls.
Municipal/ Provincial Funds
26%
Government Subsidies
11%
Total Revenue $3,986,678*
The administration and finance team helps manage Tourism Kelowna’s daily operations, acting as stewards of the organization’s external funding as well as our self-earned revenue. This team also provides support to the Society’s Board of Directors and in 2020, was focused on successfully guiding the organization through the significant financial impact of the COVID-19 pandemic. The team’s work included: • Developing the Society’s conservative budget strategy to successfully manage at-risk revenue and reduced cash flow.
52%
5%
Meetings, Conferences, & Events
7% Wages/Benefits Visitor Experience
37%
10%
Leisure Marketing
33% Administration
13%
THANK YOU
Total Expenses
Tourism Kelowna thanks the following funding partners and organizations: • Government of British Columbia
• Destination Canada
• City of Kelowna
• Destination British Columbia
• City of West Kelowna • District of Lake Country
• Thompson Okanagan Tourism Association
• Westbank First Nation
• Kelowna International Airport
$2,930,250
*Note: With decreased 2021 revenue projections, the operating revenue surplus was carried over from 2020 to continue marketing activities.
THE ROAD AHEAD As we reflect on the past year and look ahead, it is evident that collaboration will be key as we work together to rebuild our resilient local tourism industry in the years to come. While we all had to pivot and adapt in 2020, refocusing our collective efforts on marketing primarily to a local audience, our organization remains committed to our role as the destination marketing organization for Kelowna and the Central Okanagan. In the near future, our immediate priorities remain supporting our stakeholders, continuing to connect consumers with local businesses, and standing at the ready to market our destination outside our region when it’s time to travel again. Supporting various partner organizations who are working tirelessly as advocates for the tourism industry remains important, too.
While the pandemic is at the forefront of our minds, it is important to recognize other economic, social, and environmental issues—like changing market conditions, the global climate emergency, and diversity and inclusion—that affect how people travel. These issues will feature prominently in future strategic discussions and destination marketing plans so that Kelowna remains a sought-after and respected destination. Though the road ahead is a rocky one, we know that through collaboration, innovation, and Kelowna’s entrepreneurial spirit, our local industry will once again flourish. We welcome your feedback on what the future holds and will continue to work alongside you as we welcome back visitors to our four-season playground.
Acknowledgements Successfully navigating 2020 would not have been possible without the tenacity, dedication, and innovation from every member of our organization. We extend our sincere thanks to: • Our Board of Directors, who provided their insight, expertise, and support as we pivoted and adapted throughout the year. • Our dedicated Visitor Experience volunteers, who continued to assist residents and travellers, as they were able, providing information on how to explore Kelowna safely. • Our team members, who worked diligently to support Tourism Kelowna stakeholders and local tourism businesses, doing whatever they could to help our industry survive and thrive, when possible. We also applaud the ongoing efforts of our local tourism industry during this most challenging year—we are grateful for your support and look forward to serving you through recovery and beyond.
Image credit: Aerial view of Tantalus Vineyards/South Kelowna | Shawn Talbot
THE VALUE OF TOURISM QUALITY OF LIFE The value of tourism, however, is not only economic, as the industry contributes positively to the quality of life of our region’s residents, who can enjoy world-class amenities, events, and attractions year round, alongside visitors.
Kelowna City Park Hot Sands Beach Credit: Shawn Talbot
92% 60%
OF CITIZENS HAVE A GOOD QUALITY OF LIFE.** OF DECIDED RESIDENTS BELIEVE TOURISM IS A CONTRIBUTING FACTOR TO A GENERAL INCREASE IN THEIR QUALITY OF LIFE.*
ECONOMIC IMPACT Tourism is a vital economic driver in Kelowna and the Central Okanagan, producing revenue for local businesses, creating jobs, and generating tax revenue that is reinvested in our communities.
94%
OF DECIDED RESIDENTS BELIEVE TOURISM IS A VITALLY IMPORTANT INDUSTRY IN KELOWNA AND THE CENTRAL OKANAGAN.*
2018 ECONOMIC IMPACT SUMMARY*** Tourism in Kelowna & Central Okanagan
12,970
TOTAL JOBS GENERATED
Golf Courses
Galleries & Museums
Parks, Beaches, & Lakes
Wineries, Breweries, Cideries, and Distilleries
19
300+
TOTAL ECONOMIC OUTPUT
02
$573M
$1 BILLION
$204M
$443M
TAX CONTRIBUTIONS $121M (59%): Federal Taxes $65M (32%): Provincial Taxes $18M (9%): Municipal Taxes
70+
$2.1 BILLION Ski Resorts
WAGES GENERATED
12+
TOTAL GDP
Restaurants & Cafés
300+
*Tourism Kelowna’s 2020 Resident Sentiment Survey ** The City of Kelowna’s Citizen Survey ***InterVistas 2018 Economic Impact Study
VISITOR SPENDNG BY OVERNIGHT & DAY VISITORS
#exploreKelowna | tourismkelowna.com