Blog

This year Glyphnews is going to focus on the trends that underpin the changes coming in the tourism and hospitality sectors and how they will impact Saskatchewan. As always, our focus is squarely placed on seizing the opportunity to become a destination of choice for the massive global-international tourism market. So, let’s kick things off by talking about why we should be developing our industry to attract and support export tourism.

First, some numbers: (note: figures gathered from World Travel and Tourism Council and Government of Canada)
• Over $8.3 trillion USD = Total contribution of tourism and travel to global GDP in 2017
• 6% = growth year over year for international outbound tourism in 2018 totalling 1.4 billion unique visits
• 25,834,812 = total # of international visitors recorded for all of Canada within the period of Jan-Oct 2018
• 88,146 = total # of international visitors recorded for Saskatchewan within the period of Jan-Oct 2018. This results in a percentage of 3.4 of total Canadian international visitors.

These statistics illustrate some important points: 1) Tourism is a huge industry globally and it is growing at an impressive rate year over year. 2) Canada is in the game but…3) Saskatchewan is not (yet).
Traditional barriers, like geography or lack of direct flights, that have kept investment in export tourism low are becoming less important. Transformational experiences, customization, and value are driving the purchasing behaviour of travellers in 2019 and into the next decade. Here in Saskatchewan, we have the raw ingredients to offer compelling experiences to this new global market. We are rich in Indigenous cultures, wilderness, and agriculture. Our cities now offer elevated food experiences and world-class arts and culture, and we have a heritage of stories and history, from tragic to triumphant, that the world deserves to know about.

We have the chance to seize the initiative and get into the game. But we have to act, and we must invest.

Success will see a notable increase in our provincial GDP and job creation as well as a global elevation of our image as a province. Failure to act quickly will see us watching from the sidelines as other destinations adapt to the new travel marketplace and capture that market.
In the coming weeks on this blog, watch for deeper dives into the trends that we need to engage with in order to rapidly develop our industry to support the growth of export tourism. Here are some of the trends we’ll be exploring:

1. The post-experience economy: As a secondary market, our opportunity rests on delivering experiences that have the power to transform. The next big wave in experience development is geared towards the interests of Millennials and Gen Z and they have shown a clear preference to spend on experiences over things. However, to be competitive, an experience needs to contain meaning and connect the visitor to the place and its people in a way that’s transformative. We’ll take a look at the factors driving this trend, examples of what’s working and the opportunity we have in Saskatchewan to create transformational experiences (hint: it’s our core advantage).

2. ‘Under’ tourism: There is a global trend occurring as a response to the problems created by over tourism in traditional travel hot spots. Savvy travellers are seeking out the destinations less travelled. Major players in the industry are supporting this trend and we’ll explore how Saskatchewan can benefit.

3. Wellness and hospitality: Incorporating a philosophy of wellness (physical and mental) into hospitality product offerings is paying off big time for the operators who are investing in it. We’ll examine this trend and some of the natural advantages Saskatchewan possesses to develop experiences that feature wellness at their core.

4. Customization is the new luxury: The ability for visitors to customize all aspects of their travel journey, from booking preferences to in-trip experiences, is becoming the new standard for luxury in the tourism market. We’ll examine how this trend is impacting the industry and how Saskatchewan operators can apply customization options to their product offerings.

5. Personalization: Our browsing and social media habits have given marketers and analysts vast amounts of personal data to work with. Over time this data has been used to develop sophisticated profiles that segment consumers based on demographics, values, and purchasing behaviours. It can feel strange when an ad appears for a product or service you have been thinking about, but it’s a strangeness that is being normalized. In fact, catering to personal interests is becoming more desirable to travelers.

6. Tours and activities are the next frontiers: The travel industry is staking claims on the tours and events sector as the next big frontier in tourism. The big OTAs (online travel agencies) are building capacity and customer demand for experiences has led to valuations in the billions in untapped market potential. We’ll examine how to build partnerships to rapidly develop high-quality experiences that can be leveraged by operators to seize this opportunity, as well as the gaps in our current infrastructure that will need to be filled.

If you are interested in exploring any of these trends in more detail or want to start a conversation please get in touch at christian@glyphcreative.ca

Ready or not it’s official: legalized recreational cannabis has come to Canada. It’s a huge change in the status quo in terms of legal and policy implications and brings a brand-new market to bear that has the distinction of already being a proven winner. Canada’s black market for cannabis was worth as much as $6.2B in 2015. It’s going to take time to iron out the basics of how everything will work going forward, but I believe it is prudent for those in the tourism sector to begin thinking critically about the potential opportunities and challenges this new status quo brings to the table.

I recognize that this is a complex topic that is often regarded through an ethical and moral lens.  However, I think history is our guide here and I firmly believe public sector hunger for additional tax revenue and private sector needs to diversify and enter new markets will lead to rapid adoption of legalized cannabis opportunities. The tourism and hospitality sector will need to keep pace and take a leadership position if we’re going to build a competitive, safe, and attractive cannabis tourism industry in Canada and Saskatchewan.

Here a few things to consider:

We just became the most popular host in a very small and intimate party

With the formal adoption of legislation legalizing recreational cannabis, Canada becomes just the second country in the world to do so, joining Uruguay which passed legislation in 2013. Given our accessibility and relative perception as a safe and travel-friendly destination, Canadian legalization has caught the attention of travellers and industry who are motivated by cannabis on a global scale.  Right now, in the eyes of many, we’re the only game in town on a national level.

There are currently 11 states in the U.S that have legalized cannabis consumption, however their ability to market export-focused cannabis tourism products is somewhat curtailed by the strict laws that prohibit recreational cannabis consumption at a federal level, which means that cannabis-related travel activities carry risk of expulsion and travel bans for those who reveal it at border crossings. The big opportunity then is to get a head start on developing policies and partnerships that will accelerate the growth of the industry and put Canada and its provinces in a leadership position in this market.

Rapid action is needed however because…

The party is going to get crowded soon and the stakes will change

It appears that support for legalization of recreational cannabis is hitting critical mass. There are at least ten countries either developing recreational legalization policy, actively considering it, or feeling significant lobbying pressure to consider it. Among those countries are our neighbours in North America, both the U.S. (yes that seems like a long shot, but public support is significant and a change in government will open the door) and Mexico. If we delay in developing a sustainable industry, then we will lose the advantage we currently possess by being one of the first countries to allow the opportunity.

Lessons we can learn

There are challenges to building cannabis tourism experiences from both a regulatory and marketing perspective. Many nations including China and the U.S. strictly prohibit the use of cannabis and have indicated that they will be monitoring their citizens for signs of use during their travels. This does place an ethical concern on operators to be careful which markets they promote to and how they record customer data. It’s also paramount that potential operators consider the safety components of their offerings. Tour operators will be facing high liability pressure when booking experiences that involve cannabis and a well thought out safety strategy will make your product much more attractive. It is critical for everyone involved that operators consider their transportation and accommodation partners carefully. Finally, cannabis-related experiences should be developed through a transformational experience framework and focused on a high-quality standard. Pairing activities such as culinary and culture are a natural fit. These types of experiences are what the export tourism marketplace is craving.

How do we start?

Everything in this space is so brand new that most provinces are still unable to roll out enough product to satisfy local demand, nevermind tourism. On top of that the rules governing sales, marketing, and consumption vary widely from one jurisdiction to the next. It’s easy to get caught up in the day-to-day stumbles of an industry in its infancy. The key to moving forward will be for those industries that will be directly impacted by cannabis tourism to take leadership positions. We need to begin planning for a near future where cannabis related tourism presents an opportunity for economic growth that supports business development, expansion, and labour force development. Operators in the hotel, restaurant, and hospitality industry, along with liquor and gaming, municipalities and Indigenous Nations need to collaborate and form a common ground. Some lobbying will need to take place to ease regulations and a strategy will need to be developed to justify that easing. So once again, as always it will take effort and sitting on our thumbs will cost us.

If you would like to connect, email me at christian@glyphcreative.ca. If you are enjoying the newsletter, please share it with a colleague. Thanks for reading.

Tourism is seeing substantial growth on a global scale. Growth is being driven by multiple trends: the rise of the middle class in China, millennial leisure spending leaning towards experiences over material goods, and the democratization of travel platforms aligning with value-priced airlines and accommodations to name a few. In 2017, this translated into tourism and travel activity contributing 10.4% of total global GDP as well as having a global impact on labour that sees it support 9.9% of jobs globally. For Canada, this translated into 20.8 million export tourism visits in 2017 worth 2.09% of our GDP.

So, what does this mean for Saskatchewan? It means we’re missing out on a massive and growing economic opportunity.

Provincially we have a strong tourism sector that remains an important economic bedrock, contributing $1.88 billion to the provincial economy in 2017. The important statistic to note, however, is just how much of that spend is generated from within the province and from our nearest neighbour to the west. Overall, in-province domestic tourism spending accounted for 86% of Saskatchewan’s tourism dollars, while an additional 9% came from Alberta. Our international export numbers amount to not much more than 1% – almost a rounding error. There are operators who have built solid businesses through fishing and hunting packages sold to the American marketplace and our City Marketing Organizations (CMO) have done good work bringing international business visitors to Saskatchewan through bidding on and hosting events, but overall there is a massive amount of cash being left on the table.

I think we’re ready to enter the export tourism marketplace, and here’s why:

The playing field is levelling out.

For much of the 20^th century and early 21^st century, travel was dominated by accommodation and landscape. Bookings were made through travel agencies that promoted established destinations featuring iconic landscapes that acted almost like a checklist: see the mountains – visit Banff (check). This model kept Saskatchewan off the radar and provided little incentive to invest in infrastructure or marketing to support an export tourism economy here. However, in the aughts, the tourism model evolved into the experience model that has now come to dominate travel planning and bookings. The experience model has fundamentally disrupted the static sightseeing model and has also levelled the playing field. Destinations no longer need massive capital investments and proximity to well-known geographic features to be compelling. With a collaborative approach, a smaller destination can develop and promote experiences that appeal to the global market. This is how Saskatchewan can get in the game.

We are rich in Indigenous culture and there are many First Nations investing in tourism.

Demand for Indigenous tourism experiences is growing at a rapid rate both nationally and internationally. Recent research published by the Indigenous Tourism Association of Canada indicated a rise from $1.4 billion in Indigenous tourism-driven GDP in 2015 to $1.8 billion in 2017. The growth is no surprise, as the predominant activities that typify Indigenous tourism experiences, cultural, arts, educational, and environmental activities align very well with the global travel demand for transformational experiences. Saskatchewan is comprised of territory and treaty lands that have been home to Indigenous people and nations for millennia. There are 70 First Nations located within provincial boundaries and Saskatchewan is also the traditional homeland of the Métis. This is our greatest strength in approaching the global tourism marketplace with a strong message. Saskatchewan can be the destination you visit if you want to experience the culture of the northern plains Indigenous people. The work is already beginning, with the Indigenous Tourism Corridor project coming online in 2020, proudly representing Saskatchewan’s first Indigenous tourism experience packaged for export markets. We are also very strong foundationally when it comes to agricultural-focused tourism, another area that lends itself well to transformational experiences. Those experiences will be of benefit to rural communities and can be developed and packaged together with Indigenous experiences and hospitality infrastructure.

We’ve got nothing to lose and much to gain.

We are fortunate to have a strong domestic tourism industry in Saskatchewan, as demand for outdoor camping and lake product continues to grow and the trend does not appear to be slowing. Our cities have sophisticated MICE strategies (Meeting, Incentive, Conferences and Events) that are paying off year over year. Businesses operating in the tourism sector will not be sacrificing the existing market by committing resources to develop export tourism strategies. However, building experiences to bring in export tourism will result in more heads in beds, tables served, cab rides taken, airline tickets purchased, and an overall enhancement of our provincial brand and the brands of businesses involved. The result? An increased influence that will support many industries.

How do we do it?

As an industry, we must connect, collaborate, engage, and advocate. Most of all we must make the effort…and we need to move fast.

We have a window of opportunity, right in front of us. Many traditional tourism focused economies are struggling to pivot to the new transformational experience model and they are suffering from compression and inflated prices after decades of dominance. Booking agencies and the big guns in travel are also hungry to add experiences to their offerings and new destinations have an edge in value offered. However, this window will close. Competition is fierce in North America and if we fail to innovate rapidly, we will be left behind…again.

We need to foster cross-collaboration between the accommodations sector, event and meeting sector, food and beverage sector, the arts and cultural sector, traditional attractions, outfitters and parks, rural communities and Indigenous communities. Representatives will need to come together and prototype experiences that involve collaboration from start to finish, resulting in packages that can be booked beforehand or in-trip (another big trend emerging).

We also need to up our quality game. Yes, we are friendly but with some exceptions, our service standards are not good enough to meet export tourism standards. Luckily, we have a secret weapon – the Saskatchewan Tourism Education Council is very good at what they do and can offer businesses and communities a range of customer service and hospitality focused training, and we need to leverage that.

Finally, this will require effort. We must, as participants in this industry, work to engage and collaborate. Critical mass must be achieved to affect meaningful change. If we get the ball rolling and prove a case, governments will assist us. I know this because I have secured government funds doing this kind of work.

If you are interested in working together to make export tourism happen in SK, please get in touch at christian@glyphcreative.ca.