Horizontal initiatives 2014-2015
Horizontal Initiatives
The two horizontal initiatives presented below will no longer be reported on as a separate supplement to the Departmental Performance Report (DPR) or Report on Plans and Priorities (RPP). Federal partner organizations for each initiative will, however, continue to report on the initiative in the “Analysis by Program” section of their RPPs and DPRs.
Previous reporting on these initiatives can be found in the Treasury Board of Canada Secretariat’s Horizontal Initiatives Database.
Atlantic Canada Agreement on Tourism in Support of the Atlantic Canada Tourism Partnership (2012-15)
Name of lead department: Atlantic Canada Opportunities Agency (ACOA)
Federal partner organization(s): nil
Non-federal and non-governmental partner(s):
- Hospitality Newfoundland and Labrador
- Tourism Industry Association of New Brunswick
- Tourism Industry Association of Nova Scotia
- Tourism Industry Association of Prince Edward Island
- Newfoundland and Labrador Department of Business, Tourism, Culture and Rural Development
- New Brunswick Department of Tourism, Heritage and Culture
- Nova Scotia Tourism Agency (formerly Nova Scotia Economic and Rural Development and Tourism)
- Prince Edward Island Department of Economic Development and Tourism (formerly Department of Tourism and Culture)
Start date of the horizontal initiative: April 1, 2012 (Previous renewals, three years each: 1991, 1994, 1997, 2000, 2003, 2006, 2009)
End date of the horizontal initiative: March 31, 2015 (three years)
Total federal funding allocated (start to end date): $9,975,000
Funding contributed by non-federal and non-governmental partners: $9,975,000
Description of the horizontal initiative: On April 1, 2012, ACOA entered into a three‑year, $19.95 million international tourism marketing agreement with the four provincial tourism industry associations and the four provincial government departments responsible for tourism in Atlantic Canada.
The Atlantic Canada Agreement on Tourism in support of the Atlantic Canada Tourism Partnership (ACTP Agreement) intensifies the region’s international tourism marketing efforts by generating marketing economies and efficiencies at the consumer, travel‑trade and media‑relations levels. Deemed a best practice in federal-provincial-industry marketing partnerships, the ACTP Agreement enables its partners to pool resources and penetrate markets that are largely inaccessible to them individually. It rests on the principles that marketing strategies:
- are based on sound market research, economies of scale, commonality, funding that is incremental to provincial marketing budgets, and the preservation of provincial brand equity;
- are directed by the marketplace, have clear and responsive measurement systems, are of benefit to all four Atlantic provinces and are subject to annual evaluation;
- are directed at high-potential consumer lifestyle markets in the mid-Atlantic and New England regions of the United States, and in priority markets in the United Kingdom; and
- will advantage, complement and reinforce the Canadian Tourism Commission’s Canada brand: “Canada, Keep Exploring.”
Funding of the ACTP Agreement is shared as follows: ACOA $9,975,000 (50%); Provinces, $6,583,500 (33%); and industry, $3,391,500 (17%).
Additional information can be found on the ACTP website.
Shared outcomes: The ACTP Agreement directly supports the Federal Tourism Strategy’s priority of “increasing awareness of Canada as a premier tourist destination” and ACOA’s Growth Strategy for Tourism. It exemplifies the strategic outcomes for ACOA's priority of increasing revenues, profits, investments and wages. The ACTP’s outcomes aim to:
- increase Atlantic Canada’s competitiveness in targeted markets;
- promote regional co-operation (federal, provincial, industry);
- promote incremental marketing activities;
- achieve economies of scale in marketing;
- raise awareness of Atlantic Canada as a “top of mind” destination; and
- increase tourism arrivals and tourism revenues for the four Atlantic provinces.
Governance structures: A management committee is responsible for the administration and management of the ACTP Agreement. It is also responsible for the communication of activities undertaken through the agreement, and for coordinating the agreement with other federal and provincial projects and industry activities. The committee consists of 10 members, including the four provincial deputy ministers (or designates) responsible for tourism in Atlantic Canada; the presidents (or designates) of the four tourism industry associations in Atlantic Canada; the Vice-President of ACOA PEI and Tourism; and the Director General of Tourism Atlantic (ACOA). The Canadian Tourism Commission (CTC) also sits ex-officio on the management committee. Quorum for all meetings of the management committee consists of seven voting members representing ACOA, three provincial ministers and three industry presidents, provided that the four provinces are represented either through provincial ministers or association presidents.
Government representation on the marketing advisory committee enhances the Tourism Industry Association of Prince Edward Island’s ability to incorporate provincial and federal priorities for tourism into its annual marketing strategies. The marketing advisory committee is composed of one representative of each of the four provincial departments of tourism, one representative from each of the four provincial tourism industry associations and two ACOA representatives
Performance highlights:[1] TIAPEI’s marketing activities in the United States generated $48.9 million in revenues for Atlantic Canadian tourism businesses in 2014-15 and $5.1 million in publicity. Marketing effectiveness was demonstrated by a return on investment of $17.94 for every $1.00 invested in direct-to-consumer advertising, joint marketing partnerships with the travel trade and media relations (publicity).
Overseas, TIAPEI’s marketing activities in the United Kingdom generated $9.5 million in visitor spending and another $9.5 million in media relations (publicity). Marketing effectiveness was demonstrated by a return on investment of $33.19 for every $1.00 invested in direct-to-consumer advertising, joint marketing partnerships with the travel trade and media relations (publicity).
Over the duration of the ACTP Agreement, TIAPEI’s marketing activities in the United States and the United Kingdom generated almost $164.4 million in revenues and $35.5 million in media relations (publicity), resulting in a return on investment of $15.33 for every $1.00 invested in direct-to-consumer advertising, joint marketing partnerships with the travel trade, and media relations (publicity).
Results achieved by non-federal and non-government partners: The ACTP Agreement enables industry, the four Atlantic provincial governments and the Government of Canada to pool their resources in order to increase the visibility of Atlantic Canada in priority markets as a leisure travel destination. In most cases, this exposure would not be possible individually. The ACTP Agreement enables the following: relationship building and collaborative partnership with the Canadian Tourism Commission; joint marketing partnerships with tour wholesalers/operators; marketing efficiencies (media buys, media relations); research efficiencies that support marketing strategies and tactics; familiarization tours that provide travel writers and tour operators with first-hand information on (and exposure to) the region’s tourism assets; and support to Atlantic Canada Showcase, a venue that allows tourism operators to interact with tour wholesalers and tour operators.
Contact Information: Rob McCloskey Director General, Tourism Atlantic Atlantic Canada Opportunities Agency P.O. Box 40 Charlottetown, Prince Edward Island C1A 7K2 Telephone: 902-626-2479 E-mail: Rob.Mccloskey@canada.ca
| Federal Organization | Link to Departmental Program Alignment Architecture | Contributing Programs and Activities | Total Allocation (start to end date) ($) | 2014-15 Planned Spending ($) | 2014-15 Actual Spending ($) | 2014-15 Expected Results | 2014-15 Actual Results Against Targets |
|---|---|---|---|---|---|---|---|
| ACOA | Community Development (Community Investment) | Atlantic Investment Partnership II – Tourism | 9,975,000 | 3,325,000 | 3,325,000 | ER 1.1 | AR 1.1 |
$10 in incremental economic activity for every $1 invested in marketing.
$41.67 million in revenues, generated by marketing activities in each year of the partnership.
Actual results against targets 1.1
$17.94 return on investment in the United States.
$33.19 return on investment in the United Kingdom.
$48.9 million in revenues (and $5.1 million in publicity) generated by marketing activities in the United States.
$9.5 million in visitor spending (and another $9.5 million in publicity) generated by marketing activities in the United Kingdom.
A total of $58.4 million in revenues and $14.6 million in publicity.
International Business Development Agreement (2011-16)
Name of lead department: Atlantic Canada Opportunities Agency (ACOA)
Federal partner organization(s): Foreign Affairs, Trade and Development Canada (formerly DFAIT); Industry Canada
Non-federal and non-governmental partner(s):
- Opportunities New Brunswick (formerly Department of Economic Development)
- Nova Scotia Department of Business (formerly Department of Economic and Rural Development and Tourism)
- Newfoundland and Labrador Department of Business, Tourism, Culture and Rural Development (formerly Department of Innovation, Business and Rural Development)
- Prince Edward Island Department of Innovation and Advanced Learning
- Nova Scotia Business Inc.
Start date of the horizontal initiative: April 1, 2011 (The initiative originally started on May 27, 1994, with five subsequent renewals.)
End date of the horizontal initiative: March 31, 2016 (five years)
Total federal funding allocated (start date to end date): $7,000,000
Funding contributed by non-federal and non-government partners: $3,000,000
Description of the horizontal initiative: In May 1994, ACOA entered into an agreement (the Canada-Atlantic Provinces Agreement on International Business Development, also known as the IBDA) with the four Atlantic Provinces, Foreign Affairs, Trade and Development Canada (formerly DFAIT) and Industry Canada to “undertake specific measures to optimize regional coordination on a pan-Atlantic scale and combine limited resources to coordinate trade-related activities.” Since its launch, the agreement has been extended five times (1997, 2000, 2005, 2010 and 2011) for a total investment of $35 million from federal and provincial contributions. Funding is cost-shared 70/30 by the federal (through ACOA) and provincial governments.
The IBDA supports ACOA’s International Business Development (IBD) sub-program by coordinating efforts of federal, provincial and private-sector organizations in pursuing international business opportunities. This aligns well with Canada’s Global Markets Action Plan, which aims to strengthen the country’s position in international markets and reinforce Canada’s image internationally as a preferred business partner and premier investment destination.
More information can be found on the IBDA website.
Shared outcomes: The shared outcomes for IBDA partners support ACOA’s IBD activities: (1) expanded international business activities by SMEs in Atlantic Canada and (2) identification of foreign direct investment opportunities in Atlantic Canada.
Governance structures: ACOA is the lead organization for this initiative and houses the secretariat responsible for administering the agreement. A management committee, comprising a representative from each of the partners, is responsible for the planning and management of the agreement’s strategic elements and the evaluation of projects.
Partners include:
Federal departments and agencies (70% funding)
- ACOA (lead department)
- Foreign Affairs, Trade and Development Canada (non-funding partner)
- Industry Canada (non-funding partner)
Provincial governments (30% funding)
- Opportunities New Brunswick
- Nova Scotia Department of Business (formerly Nova Scotia Economic and Rural Development and Tourism) and Nova Scotia Business Inc. (non-funding partner)
- Newfoundland and Labrador Department of Business, Tourism, Culture and Rural Development
- Prince Edward Island Department of Innovation and Advanced Learning
Performance highlights: During 2014-15, ACOA and its partners approved 29 projects. Surveys conducted show that 64% of SMEs expanded their international sales within 12 months of participating in an IBDA activity. In addition, 73 clients participated in learning, training and skills development activities. The IBDA also contributed to the diversification of markets by supporting projects in developing markets (e.g. outgoing trade missions to Brazil and China as well as projects related to India). The IBDA also acted as a forum to discuss opportunities for Atlantic Canada SMEs in European and Korean markets.
Results achieved by non-federal and non-governmental partners: Same as federal partners
Contact Information: Bill Grandy Director General, International Business Development Atlantic Canada Opportunities Agency P.O. Box 6051 Moncton, New Brunswick E1C 9J8 Tel.: 506-851-6496 E-mail: bill.grandy@canada.ca
| Federal Organization | Link to Departmental Program Alignment Architecture | Contributing Programs and Activities | Total Allocation (start to end date) ($) | 2014-15 Planned Spending ($) | 2014-15 Actual Spending ($) | 2014-15 Expected Results | 2014-15 Actual Results Against Targets |
|---|---|---|---|---|---|---|---|
| ACOA | Enterprise Development | Business Development Program – International Business Development | 7,000,000 | 1,400,000 | 1,839,949 | ER 1.1 | AR 1.1 |
| ER 1.2 | AR 1.2 | ||||||
| ER 1.3 | AR 1.3 | ||||||
| Foreign Affairs, Trade and Development | International Commerce | not applicable | 0 | 0 | 0 | ||
| Industry Canada | Internal Services | not applicable | 0 | 0 | 0 |
Number of projects undertaken: 25
Number of projects undertaken: 29
Percentage of SMEs that expanded their international sales within 12 months of participating in an IBDA activity: 50%
Percentage of SMEs that expanded their international sales within 12 months of participating in an IBDA activity: 64%
Number of clients that participated in learning, training and skills development activities: 150
Number of clients that participated in learning, training and skills development activities: 73
[1] MRSB Consulting Services, Evaluation of the 2012-15 Atlantic Canada Tourism Partnership, 2012-15 Final Report. March 2015.
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