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ANNUAL REPORT 2011/2012 1
MAKING CONNECTIONSAnnual Report 2011–2012
MAKING CONNECTIONS2
ANNUAL REPORT 2011/2012 3
TABLE OF CONTENTSIntroduction Message from the Board Chair ............................................4
Message from the President & CEO ....................................7
Mandate ...............................................................................8
Growth ..................................................................................9
ConnectionsVisitors ................................................................................11
2011/12 Marketing Campaign ............................................12
Meeting, Conventions and Events .....................................14
Fishing & Hunting ...............................................................16
Media ..................................................................................20
International Audiences ......................................................25
Industry with Learning Opportunities .................................26
Industry and Knowledge .....................................................32
Industry Partners ................................................................36
Board of Directors ..............................................................42
Our People ..........................................................................43
Financial Statements ..........................................................45
MAKING CONNECTIONS4
MESSAGE FROM BOARD CHAIR
Tourism is one of the largest and fastest
growing economic sectors in the world,
and international tourist arrivals are
projected to reach 1.6 billion worldwide
by 2020. According to the United Nations
World Tourism Organization (UNWTO)
2012 tourism highlights, despite
occasional shocks, international tourist
arrivals have shown virtually uninterrupted
growth – from 277 million in 1980 to 528
million in 1995, and 983 million in 2011.
They are expected to reach one billion in
2012 for the first time.
While tourism has experienced continued
expansion and diversification, many new
destinations have emerged, challenging
the traditional ones of Europe and North
America. Emerging economy destinations
have grown faster than advanced
economy destinations, and according
to the United Nations World Tourism
Organization, this trend is set to continue
in the future.
So what does this mean for Canada, and
specifically, for Manitoba?
We know that Canada has high-quality
tourism experiences, and the Canada
brand is resonating with potential
customers, now ranked #1 by the
country brand index prepared by Future
Brand. Manitoba’s tourism experiences
are competitive with any of those in
the country, and several have received
recognition through the Canadian
Tourism Commission’s Signature
Experience program.
“ It is time that the world’s governments really sit up and take notice of the Travel & Tourism industry. As a driver of economic recovery and growth in a very turbulent time, the industry stands apart for the sheer scale of its ability to create jobs and growth in every part of the globe.”
– David Scowsill, President and CEO, World Travel and Tourism Council
ANNUAL REPORT 2011/2012 5
The importance of tourism in Manitoba
cannot be underestimated. Tourism
contributed $1.3 billion to our economy in
2010, with the majority of visitor spending,
61%, coming from residents travelling
within the province. It is also an important
export industry, as visitors from outside of
Manitoba spent over half a billion dollars in
communities throughout the province.
Tourism means jobs for Manitobans.
We have over 5,300 tourism businesses
operating in the province, creating close to
25,000 direct, indirect and induced jobs.
The question now facing our tourism
industry is, “How do we harness the
power of tourism for the betterment of the
industry and the citizens of this province?”
We need to make sure that every dollar
invested in tourism – by both the public
and private sectors – achieves maximum
impact. By working together, we can
avoid duplication of effort and increase the
prosperity of our province.
Canada’s national tourism marketing
organization, the Canadian Tourism
Commission (CTC), has identified
alignment and innovation as the two
critical components of its corporate
strategy for 2012–2016. These twin
priorities will be critical as Canada goes
head to head with new destinations
offering exotic tourism experiences.
Tourism marketing is already a fiercely
competitive business with variables that
often can’t be controlled. As a result, we
must work smarter than our competitors.
Travel Manitoba’s goal is to create a
single vision for tourism growth, one that
aligns the efforts of governments and
the business community. By working
together with our stakeholders, we
believe we can build a competitive
tourism strategy, one that ensures
Manitoba achieves its potential as an
economic engine, and ensures its place
on the tourism world stage.
Bob Sparrow CHAIR OF THE BOARD OF DIRECTORS
ESPLANADE RIEL, WINNIPEGPhoto by: Blaine Harrington
MAKING CONNECTIONS6
ANNUAL REPORT 2011/2012 7
MESSAGE FROM THE PRESIDENT & CEO
Colin Ferguson PRESIDENT & CEO, TRAVEL MANITOBA
In Manitoba, and across Canada, we face the
challenge of fragmentation in the tourism
industry. Effective marketing of Manitoba
as a premier tourism destination requires
agreement and cooperation amongst a wide
range of stakeholders, and the public and
private sector must work together within
limited budgets.
2011 was a year of transition for Travel
Manitoba as we developed a new, solid
business plan for the next three years, one
that builds towards our vision of leading the
marketing and development of Manitoba’s
tourism industry.
Travel Manitoba’s top priority towards
realizing this vision is to lead the industry
with marketing, communications and media
relations excellence. As much as we may not
think of tourism as “retail,” we are, in fact, in
the business of selling, and we need to reflect
that in our marketing approach.
Travel Manitoba is committed to developing a
new, “awe-inspiring” brand that distinguishes
Manitoba from the competition; a brand that
offers a differentiating vision with which
all stakeholders can align their individual
marketing efforts. One of the most important
tactical principles in branding is the concept of
alignment. Alignment is the key to maximizing
the effectiveness of marketing and branding
efforts. We, as Manitobans, should be proud
of our home and our tourism experiences, and
a new, awe-inspiring brand will turn Manitoba
residents into our greatest ambassadors.
Another key strategic priority for Travel
Manitoba is to strengthen our relationships
with business and government. We will
continue to expand Manitoba’s presence in
target markets by partnering with business
through advertising sales, partnerships,
e-marketing and special promotional
opportunities. Partnership revenues are put
back into marketing and communicating
Manitoba’s message to primary and secondary
markets. We also take seriously our role to
identify emerging market trends and provide
information, research and assistance to
tourism operators to capitalize on these trends.
Manitoba is on a roll, with new assets coming
to market and significant investments being
made in Winnipeg and throughout the
province that are further positioning Manitoba
as a unique destination of choice. Now is
the time to capitalize on these investments
by marketing and
communicating them
to the world.
d
them
VISIONTravel Manitoba will lead the marketing and development of Manitoba’s tourism industry.
MISSIONGrow tourism revenues by harnessing the collective investment in tourism to create strong connections between visitors and Manitoba’s unique experiences.
MAKING CONNECTIONS8
ANNUAL REPORT 2011/2012 9
$1.3 BILLION in visitor spending (Stats Canada TSRC and ITS 2010)
8.6 MILLION visitors
$492 MILLION in export revenue
24,800 JOBS
$554 MILLION in tax revenues for governments
Record growth in 2010 due to increased
investment in marketing
5.8% GROWTHtotal expenditure growth
2010 versus 2009
“ For over 16 years, the collaboration Parks Canada has had with Travel Manitoba at the Explore Manitoba Centre has been a win-win situation, benefiting both organizations and most importantly the public. Our respective goals and mandates complement each other well and enable the public to receive a full range of information in both official languages about the national parks, national historic sites and provincial attractions in Manitoba. Parks Canada highly values its collaborative working relationship with Travel Manitoba.”
MARILYN PECKETT, Superintendent, Manitoba Field Unit, Parks Canada Agency
MAKING CONNECTIONS10
ANNUAL REPORT 2011/2012 11
Visitor counselling sessions
UP 22% Participation in the Visitor Service
Network program up from
6 AFFILIATES TO 8 Traffic to travelmanitoba.com
UP 66%Traffic to manitobamonsters.com
UP 376%Facebook fans up from
1,500 TO 11,265Visitor inquiries
UP 11%
CONNECTING WITH VISITORSIn 2010, Travel Manitoba launched a Visitor
Services Network pilot program to better
meet the informational needs of travellers
across Manitoba. By partnering with
existing visitor information centres in areas
where Travel Manitoba did not have
a presence, and providing signage and
training, the program has strengthened our relationship with tourism partners and has enhanced the availability and quality of visitor information. Participation in the
program continued to grow in 2011/12.
In 2011/12, Travel Manitoba expanded
its presence on social media sites like
Facebook, Twitter, and YouTube. Through
daily efforts and contests, our social media
engagement has increased significantly.
Supplementary microsites like Everything
Churchill, Manitoba Monsters and What’s
Hot?, along with associated “AdWord”
campaigns, continued to drive increases
to the number of unique visitors seeking
information on Manitoba’s tourism
products. Pay-per-click ad campaigns for
Churchill and Culture on Every Corner
achieved significant click-through-rates of
.66% and .52% respectively.
MAKING CONNECTIONS12
2011/12 MARKETING CAMPAIGN
Partnership opportunities for industry in the It’s Manitoba Time” campaign included:
Profile in full-page ads in the Winnipeg Free Press Saturday Travel section. In a new partnership with the Winnipeg Free Press, every Saturday featured a full-page article on a tourism product sector or region of the province.
Winnipeg Free Press newspaper ads establishing a “Manitoba Bucket List,” a list of events and attractions that are “must see, must do” items for any visitor to Manitoba.
Winnipeg Free Press.
What’s Hot?, sponsorship of e-newsletters and e-cards.
MAKING CONNECTIONS12
WINNIPEG FREE PRESS TRAVEL SECTION ADSWINNIPEG FREE PRESS “BUCKET LIST” ADSVACATION PLANNER
“
ANNUAL REPORT 2011/2012 13ANNUAL REPORT 2011/2012 13
In 2011/12 Travel Manitoba launched the “It’s Manitoba Time” campaign, designed around key brand elements identified in the strategy.
WHAT’S HOT WEBSITEPARTNER E-CARDWINNIPEG FREE PRESS EVENT WEBSITE
MEETINGS, CONVENTIONS AND EVENTSVisitors attending meetings, conventions and events contribute significantly to Manitoba’s annual tourism receipts.
Team Winnipeg 2011/12 Results
was able to convert 18 national conferences, held from
2011 to 2015, representing 5,654 delegates with an
estimated revenue of $5,365,646.
2011, resulting in three confirmed conferences representing
2,300 delegates with an estimated delegate spend of
$2,182,700.
Travel Manitoba partners with Tourism
Winnipeg on Team Winnipeg, which
provides a united marketing plan and sales
partnership to promote Winnipeg as an ideal
destination to hold a meeting or convention.
There are now 54 Team Winnipeg partners,
including new partners Manitoba Lotteries,
Rainbow Stage, Corporate Source, Nordik
Spa-Nature and the Canadian Museum for
Human Rights.
MAKING CONNECTIONS14
ANNUAL REPORT 2011/2012 15
Travel Manitoba also provides support to Brandon First and Destination Dauphin to target meetings, conventions, incentive travel and major events to these areas. In 2011, Brandon First was successful in landing the 2013 Senior Women Administrator Academic Conference and the 2011 Red River Cup. Travel Manitoba’s Sport Tournament Marketing Partnership also resulted in the establishment of a new invitational tournament – Curl Manitoba’s Sun Life Junior Challenge, held in Brandon.
ANNUAL REPORT 2011/2012 15
MAKING CONNECTIONS16
In April 2011, Travel Manitoba held the first
“Fish/Hunt Summit,” now an annual event
that brings together Travel Manitoba staff,
members of the Manitoba Lodges and
Outfitters Association (MLOA) and industry
representatives from across the province.
This working session is an opportunity for industry operators and the Travel Manitoba team to come together to identify on-going challenges confronting the fish/hunt sector and discuss new marketing opportunities.
It is also an opportunity to clarify roles and
responsibilities of the MLOA, individual
operators and Travel Manitoba as related to
marketing, advocacy and intergovernmental
relations. The feedback received at the
summit is used to shape the annual
marketing plan for the fish/hunt sector.
FISHING & HUNTING
“ This is a rare opportunity to participate in a government entity and personally I see these meetings as such a great chance to partner, and am more than willing to share my time with you and your department personalities. Now it looks as we may have an advocate beside a business community that delivers the Fish/Hunt product.”
RON DARE, Bear Track Outfitters
ANNUAL REPORT 2011/2012 17
MAKING CONNECTIONS18 MAKING CONNECTIONS18
THE HOCKEY NEWS ADSWORLD FISHING NETWORK PROMOTIONAWARD-WINNING PROMOTIONAL BROCHURE
2011/12 FISH/HUNT HIGHLIGHTSWild Hunting and Fishing Television Network
for on-location shoots for bear, caribou, deer and moose hunting, for programs to air in 2013.
The Hockey News in campaigns and promotions for both fishing and hunting. “The Biggest Catch” contest resulted in over 52,000 contest entries.
World Fishing Network to feature Manitoba on “Hookin’ up with Mariko Izumi.”
Manitoba’s world-class hunting and fishing won the Best Direct Mail award in the annual Signature Awards, a celebration of the best in Manitoba marketing.
from 2,700 unique visitors in 2010/11 to 13,000 in 2011/12.
ANNUAL REPORT 2011/2012 19
MAKING CONNECTIONS20
CONNECTING WITH MEDIA
We work closely with our tourism partners
to host and facilitate travel media as they
explore our province. In 2011/12, our tourism
partners helped to augment the Media Tour
program budget by an additional quarter
million dollars worth of in-kind support.
In 2011, seven group media trips were the
most ever conducted and targeted both
international and high-volume media. The
trips broadened exposure of Winnipeg,
Manitoba’s Interlake, the Parkland region and
the summer Churchill experience.
Communicating with travel media was
amplified in 2011 with the addition of online
tools such as the travel media website, Write
Angles e-newsletter and social media.
The Media Tour program generates the most publicity about Manitoba travel experiences.
ANNUAL REPORT 2011/2012 21
Photojournalist Qun Chen comes face-to-face with a polar bear in his piece Polar Bear Diary for China’s National Geographic Traveler:
“ One moment a bear was sitting in the snow watching us, and then the next standing up on his hind legs. His front paws pushed the Tundra Buggy. His black eyes and nose were less than one metre away from me. I could feel his warm, wet breath on my face.”
January 2011 Circulation: 495,000 Value: $251,000
CO-HOSTED109 MEDIA PROJECTS30 from non-U.S. core markets
$6.8 MILLIONin earned coverage
Twitter followers up from
800 TO 1,500REACHED POTENTIAL AUDIENCE OF
194 MILLION in features, mentions and
broadcasts
Travel Manitoba’s online media centre was a proud finalist in the Canadian Tourism Commission’s online travel media awards, and team member Jillian Recksiedler
was a finalist in the CTC’s GoMedia GoGetter award for PR excellence.
MAKING CONNECTIONS22 MAKING CONNECTIONS22
ANNUAL REPORT 2011/2012 23
” Every time I return from Manitoba, be it for a Polar
Bear Safari, Snorkelling with Belugas, Whitewater
Canoeing down the Bloodvein River, or even exploring
the thriving TV production industry in Winnipeg, all of
my adventures are deemed unexpected by my editors,
family and friends, and for sure my readers.”
AMY ROSEN, columnist and freelance journalist
ANNUAL REPORT 2011/2012 23
“ Polar bears and beluga whales are something that are truly unique, and when I see some of our potential visitors in our foreign markets looking at that product, their eyes are wide open...it’s like an African safari.”
STEVE ALLAN, Chair, Board of Directors, Canadian Tourism Commission
Photo Credit: Steve Allan
MAKING CONNECTIONS24
ANNUAL REPORT 2011/2012 25
14 GERMAN media hosted
9 U.K. MEDIA trips conducted
MANITOBA FEATURE ON EXTREME FRONTIERS AIRED
TO 7 MILLIONU.K. visitors and the series has been picked up by more than 16 networks around the world.
Host Charley Boorman paddled the Bloodvein River and visited the Hotel Fort Garry.
5 U.K. TOUR OPERATORS participated in Travel Manitoba’s “Spring Song in Canada’s
Heartland” birding FAM trip, with three of the operators planning to carry Manitoba products in 2013.
HOSTED TWO TRAVEL TRADE AND TWO TRAVEL WRITERS FROM EACH OF
CHINA AND INDIAthat resulted in all four operators adding product and six
articles in India, three in China.
MET WITH OVER 50 ACTIVE TRADE PARTNERS
IN THE U.S. MARKETAND 39 NEW POTENTIAL PARTNERSat marketplaces including the National Tourism
Association, the U.S. Tour Operators Association, the American Bus Association and the Educational
Travel Conference.
CONNECTING WITH INTERNATIONAL AUDIENCES
Travel Manitoba’s international sales, media relations and travel trade teams worked to increase Manitoba exposure in priority international markets including the United States, United Kingdom and Germany and emerging markets such as China.
There are now 95 tour operators
featuring Manitoba product in the
U.K., a 9.2% increase over the
previous year. In Germany, 34 tour
operators now offer Manitoba
experiences, up from 31 in 2010.
Sales activities were augmented by
the additional funding, with sales
missions conducted to California,
Minnesota, Germany and the
U.K., and attendance at five North
American marketplaces, Focus
Canada in India and China, and at
Rendez-vous Canada.
Funding received under a three-year Canada-Manitoba Economic Partnership
Agreement allowed Travel Manitoba to build on previous successes in increasing
visitors from international markets.
MAKING CONNECTIONS26
CONNECTING INDUSTRY WITH LEARNING OPPORTUNITIES
The tourism industry website, a monthly
e-newsletter and a daily e-news bulletin
keep industry members informed about the
services of Travel Manitoba, current research,
best practices and issues affecting the
tourism industry on a provincial, national and
international level.
Travel Manitoba aims to be the first resource that tourism industry operators consider when they are looking for tourism information, development assistance and marketing advice.
ANNUAL REPORT 2011/2012 27
Subscriptions to industry newsletter,TRAVEL CURRENTS UP
13.6%iT
EXPERIENTIAL TOURISM
travel that engages visitors in
memorable travel activities that are
personal, utilize the senses, and make
connections on a physical, emotional,
spiritual, social or intellectual level.
In 2011/12, Travel Manitoba hosted
two sessions of a multi-day product
development training program
called “The Cutting Edge” to support
industry operators in developing this
type of experience.
The program is modelled after a
similar program pioneered in Atlantic
Canada through the Gros Morne
Institute for Sustainable Tourism
(GMIST). The program combines
classroom instruction and “learning
by doing” to provide a unique and
effective educational experience. Thirty-
six tourism operators participated in
one of two sessions, in October 2011
in the Riding Mountain National Park
area and in March 2012 in Winnipeg.
These operators are now trained to
develop new experiences for 2013.
In 2010, Travel Manitoba laid the groundwork for moving towards “experiential tourism” development,
MAKING CONNECTIONS28
ANNUAL REPORT 2011/2012 29ANNUAL REPORT 2011/2012 29
MAKING CONNECTIONS30
INDUSTRY WORKSHOPS
Travel Manitoba has provided
industry operators with access to
workshops conducted by social
media experts to help them
understand and fully utilize this
medium. Social media workshops
were conducted as part of the
Cutting Edge program, as well as
at the request of some regional
tourism associations.
In partnership with the Economic
Development Council of Bilingual
Municipalities of Manitoba
(CDEM), Travel Manitoba also
hosted a Media Relations
workshop in March 2012 to
help improve participants’
understanding of the main
elements of media relations and
assist them in the development
of a media relations plan.
As social media becomes an increasingly powerful tool for influencing and motivating potential visitors,
ANNUAL REPORT 2011/2012 31
With the theme “Sharing the Manitoba Story
– Building the Visitor Experience,” the focus
of the conference was on how to incorporate
elements that are distinctly Manitoban in
tourism products to ensure memorable
experiences for the visitor. Keynote speaker,
Dr. Nancy Arsenault, spoke to the importance
of experiential tourism in the context of the
storytelling theme. She outlined how tourism
operators can benefit from storytelling to
make meaningful connections throughout the
customer lifecycle.
The conference featured sessions on
emerging markets, social media, global
trends, customer service, media relations,
sustainable tourism and collaboration and
partnerships – all important topics for a
successful tourism operation.
The 13th Annual Manitoba Tourism Awards
followed the first day of the conference,
with over 225 tourism industry members
attending the gala evening. The awards
celebrate outstanding contributions to
the provincial tourism industry, including
promoting Manitoba as a destination,
providing memorable service to visitors and
developing the tourism industry.
Fifty-five nominations for the awards were
submitted and 27 were chosen as finalists.
Finalists and winners in nine categories were
selected by an industry-based judging panel.
CONFERENCE AND AWARDSOn April 11, 2011, over 150 Manitoba tourism industry members gathered for the two-day Manitoba Tourism Conference.
TRAVEL MANITOBA AWARD OF DISTINCTION Dauphin’s Countryfest
ASPIRING YOUTH AWARD Monique Olivier
ABORIGINAL TOURISM AWARD St. Malo Festival of Friends-Festival des Amis
MARKETING EXCELLENCE AWARD Manitoba Homecoming 2010
PARTNERSHIP AWARD West Interlake Trading Company
PRODUCT DEVELOPMENT AWARD The Incorporated Community of Nelson House Fishing Derby Service Excellence Award – Aikens Lake Wilderness Lodge
SUSTAINABLE TOURISM AWARD Dauphin’s Countryfest
VOLUNTEER OF THE YEAR AWARD Bette Mueller
Travel Manitoba continually shares research and market intelligence about the industry’s economic health, trends within and influences on the industry, and forecasts of future conditions. In order to provide this information, Travel Manitoba often relies on industry to provide anonymous data and observations, which can then be analyzed collectively to provide a picture of the industry overall or segments within the industry.
MAKING CONNECTIONS32
THE EXPLORER QUOTIENT
CONNECTING INDUSTRY AND KNOWLEDGE
In 2011/12, Travel Manitoba made the
decision to invest in the Canadian Tourism
Commission’s innovative market segmentation
tool called The Explorer Quotient, or EQ.
EQ goes beyond traditional market research
to find out why people travel and how their
personal beliefs, social values and view of
the world shape the type of travel decisions
they make.
Travel Manitoba has invested in this tool to
help Manitoba tourism businesses with their
marketing plans and tourism development
strategies. Using the EQ program, operators
will be better able to understand their
customers, the types of experiences they
are after and the kind of message that will
resonate with them.
In future, Travel Manitoba will continue to
offer information sessions for industry on
how to market their products with EQ and
benefit from its insights.
ANNUAL REPORT 2011/2012 33ANNUAL REPORT 2011/2012 33
Fishing and Hunting SectorManitoba’s fishing and hunting outfitters
and lodges are a big part of this province’s
tourism industry, but there had been no clear
understanding of its economic impact for
several years. In 2011/12, Travel Manitoba
conducted an economic assessment of
Manitoba’s fishing and hunting sector. Among
other findings, the assessment showed that
total spending in Manitoba by hunters and
anglers totalled $469.1 million. Fifty-four
percent of that was spent on transportation,
including vehicle and boat purchases, fuel,
etc. That spending generated 6,180 full-
time jobs – nearly 1.2% of Manitoba’s
employment, while revenue for fishing and
hunting lodge operators stood at almost $35
million, or about 7% of total spending by
anglers and hunters.
The assessment surveyed over 130 operators
and 429 licence holders across Manitoba,
Canada and the U.S. The assessment
showed that satisfaction with Manitoba’s
fishing and hunting was great at nearly
eight or higher on a scale of ten. One of the
highlights of the assessment is the fact that
Manitoba operators participated, providing
financial information so that the study could
be completed.
Industry Survey Industry participation was also critical to the
completion of our latest Manitoba business
survey, undertaken between December 2011
and January 2012.
As part of our ongoing consultation with
industry, Travel Manitoba collects feedback
and market-related information from
Manitoba tourism businesses to aid in the
planning of future Travel Manitoba services
and programs.
Key findings of the survey:
and objectives of Travel Manitoba to zero in
on North America, as 96% of respondents’
marketing budgets are dedicated to those
markets.
to increase awareness and participation of
Travel Manitoba’s partnership and industry
programs.
marketing and promotion – identified as the
area that would help their organizations grow.
planning on developing new products,
experiences or packages in 2012.
information, an opportunity to introduce
the benefits of tracking customers through
training.
marketing themselves.
ANNUAL REPORT 2011/2012 33
MAKING CONNECTIONS34
61%
25%
10%
4%
85%10%
4%
1%
VISITOR SPENDING & VISITATION OVERALL 2010MANITOBA
$765.9 million
7,327,000 person visits$105 per person visit
OTHER CANADIAN PROVINCES
$319.6 million
836,000 person visits$382 per person visit
UNITED STATES
$126.6 million
370,000 person visits$342 per person visit
OVERSEAS
$46 million
66,000 person visits$698 per person visit
TOTAL VISITOR SPENDING
$1,258,111,000TOTAL VISITATION
8,599,000
Source: Statistics Canada – Travel Survey of Resident of Canada (TSRC) and International Travel Survey (ITS), Research Resolutions – 2010 Detailed TabulationsReceipts for International Students & Commuters have been removed in the 2010 tables, due to an unacceptably low sample size.
MAKING CONNECTIONS34
THE VALUE OF THE TOURISM INDUSTRY IN MANITOBAAccording to the latest statistics, in 2010 tourism in Manitoba contributed $1.3
billion to our economy with the majority of visitor spending, 61%, coming from
residents travelling within the province. Our next most important market at 25%
is other Canadian provinces visiting Manitoba, followed by the United States, a
key market, at 10%.
Overseas markets contribute 4% to our overall revenues, but while this represents
a small segment in terms of tourism visitations, they do represent a much higher
spend per visit. Manitobans travelling within the province spend an average of
$105 per visit while overseas visitors spend $698 per visit. Tourism is also an
export industry helping our balance of trade. Visitors from outside of Manitoba
spent over half a billion dollars in communities throughout the province last year.
The tourism sector creates jobs, especially for new entrants to the workforce. In
Manitoba, tourism sustains an excess of 24,800 direct, indirect and induced jobs.
ANNUAL REPORT 2011/2012 35
MAKING CONNECTIONS36
Average per partner revenue up from $3,738 in 2010/11 to
$4,351 IN 2011/12
$139,000 in in-kind contributions
Over 92,000 webleads to operators
UP 6.4%
Partnership revenues from industry
UP 20%
CONNECTING WITH INDUSTRY PARTNERS
ANNUAL REPORT 2011/2012 37ANNUAL REPORT 2011/2012 37
WITH THANKS TO ALL OF OUR INDUSTRY PARTNERSAikens Lake Wilderness Lodge All Terrain Bear Hunts Art Gallery of Southwestern Manitoba Asessippi Parkland Tourism Assiniboia Downs Assiniboine Park Conservancy Bed and Breakfast Manitoba Bennett Lake Lodge and Outcamps Ltd. Best Western Plus Pembina Inn & Suites Blaze Bistro Brandon Tourism/Brandon Riverbank Inc. Budd’s Gunisao Lake Lodge Buffalo Point First Nation Calm Air International LP CDC – Valley Inc. – Minnedosa CDEM Celebrations Dinner Theatre CG Emery International Children’s Museum Choice Hotels Canada – Western Regional Marketing
CommitteeChurchill Nature Tours Churchill Wild Clarion Hotel Continental Travel Group Culture on Every Corner Dauphin Economic Development & Tourism Delta Winnipeg Deseo Bistro EAST Inc. – Eastside Aboriginal Sustainable Tourism Elkhorn Resort Spa and Conference Centre Emerson Duty-Free Shop Falcon Trails Resort Inc. Folklorama FortWhyte Alive Frontiers North Adventures Gangler’s North Seal River Lodge / Canadian Sub-Arctic
Hunting Gimli Film Festival Go Orderly
Gods River Lodge Greenwood Inn and Suites Halfords Heartland International Travel & Tours Hendrick and Associates (Super 8) Hilton Suites Winnipeg Airport Holiday Inn Winnipeg Airport West Holiday Inn Winnipeg South Hospitality Plus Hy’s Steakhouse Ichiban Japanese Steak House Inn at The Forks Interlake Tourism Association Jackson’s Lodges & Outposts Jays Inn & Suites Lakeview Hotels & Resorts Lazy Bear Lodge Lea Meadow Outfitters Legend Boats Lynn Lake Fly-in Outpost Camps Manito Ahbee Festival Manitoba Association of Campgrounds and Parks Manitoba Conservation – Map Sales Manitoba Conservation – Parks & Natural Areas Manitoba Electrical Museum & Education Centre Manitoba Lotteries (Milt Stegall Drive) Manitoba Wildlife Federation MediaCom (Canadian Tire) Mennonite Heritage Village (Canada) Inc. Mid Canada Boat Show, RV Show Nature 1st (Adventure Walking Tours) New Iceland Heritage Museum Inc. Northern Spirit Lodge Norwood Hotel Oak Hammock Marsh Interpretive Centre Parkland Tourism Association Parks Canada (Attractions) Pelican Graphics Place Louis Riel Suite Hotel Provincial Exhibition of Manitoba
Public Works and Government Services Canada Rainbow Stage Red River Exhibition Ridgewood South Golf Course & Campground Riding Mountain National Park of Canada Royal Canadian Mint Royal Oak Inn & Suites Sasa-Ginni-Gak Lodge Schinkel Properties Second Nature, Adventures in Discovery Signature Museums Silsby Lake Lodge 2011 Inc. Simon Nabess Wayside Park South Beach Casino & Resort Stanley Black & Decker Super 8 – Dauphin Super 8 – Swan River The Central Museum of The Royal Regiment of Canadian
Artillery (The RCA Museum) The Fairmont Winnipeg The Forks North Portage Partnership The Fort Garry Hotel, Spa & Conference Centre The Great Canadian Travel Company Ltd. The Manitoba Museum Toad Hall Toys Tourism Westman Tourism Winnipeg Town of Carman Town of Melita Town of Morden Travelodge Canada Ukrainian Cultural & Educational Centre Victoria Inn Hotel and Convention Centre Webber’s Lodges Westwinn Group Wholesale Sports Winnipeg Art Gallery Winnipeg Folk Festival Winnipeg Symphony Orchestra Wolverine Lodge
ANNUAL REPORT 2011/2012 37
STRATEGIC PRIORITIESSUCCESS WILL BE ACHIEVED BY FOCUSSING ON THE
FOLLOWING STRATEGIC PRIORITIES:
1. Leading Marketing Excellence
2. Strengthening Relationships with Business and Government
3. Collaborating to Build a Competitive Provincial Tourism Strategy
MAKING CONNECTIONS38
ANNUAL REPORT 2011/2012 39
2012 TO 2015 OBJECTIVES
generate $1.7 billion through increased
visitation and increased yield per overnight
visitor by extending stays and increasing
visitation from long-haul markets
sector by partnering with business and
government
– Increase industry partnership revenues by
25% from a projected $800,000 in 2010
to $1 million by 2015
– Increase Travel Manitoba’s total annual
budget to $14 million by 2015
stakeholders:
– Aim to be the first resource that
tourism industry operators consider
when they are looking for tourism
information, development assistance
and marketing advice
– Align government and business
investment in tourism marketing
within Canada and internationally
Our long-term
objective is to
rank fifth in terms
of market share
amongst Canadian
provinces and
territories by 2017.
MAKING CONNECTIONS40 MAKING CONNECTIONS40
4,000,000
3,800,000
3,600,000
3,400,000
3,200,000
3,000,000
2,800,000
2,600,000
2,400,000
2007 2008 2009 2010 2011e 2012f 2013f 2014
TOTAL OVERNIGHT VISITS
3,665,000
3,076,000
3,362,000
3,536,000
3,430,000
3,527,000
3,620,000
e = estimated
f = forecast
ANNUAL REPORT 2011/2012 41
MANITOBA’S TOURISM INDUSTRY IS GROWING
a significant accomplishment as we increased
tourism revenues during a period of global
economic instability.
Enhanced investments in projects such as
Manitoba Homecoming 2010, Rendez-vous
Canada and expanded international marketing
programming made possible through the
three-year, $5 million Canada-Manitoba
Economic Partnership Agreement project
funding proved most successful as our
growth in tourism revenues increased
by 5.6% in 2010. A further indication of
the positive trends was echoed by the
Conference Board of Canada, which is
forecasting aggressive growth of 3.7% for
Manitoba in 2012.
Tourism in Manitoba has experienced steady growth and is very close to rebounding to our record levels for overnight visits as experienced in 2007,
MAKING CONNECTIONS42 MAKING CONNECTIONS42
BOARD OF DIRECTORS
BOB SPARROW (Chair) Owner Norwood Hotel
MARION MORBERG (Vice-Chair) Board Member Spirit Way
GEORGE ALEVIZOS Controller Manitoba Government & General Employees’ Union
CYNTHIA CAMPBELL Corporate Controller Canadian Wheat Board
NORMAND GOUSSEAU Chief Executive Officer Entreprises Riel
MERV GUNTER Owner/Operator Frontiers North Adventures
HELEN HALLIDAY General Manager Delta Winnipeg
RIVA HARRISON Executive Director, Marketing and Communications CentrePort Canada Inc.
WADOOD IBRAHIM Chief Executive Officer Protegra
BILL KNOWLTON Vice President Sales & Marketing Jonview Canada Inc.
SONNY LAVALLEE Chairman, Board of Directors Northern Manitoba Trappers’ Festival
EVA LUK Principal Luk-Law
DARYL SILVER President Continental Travel Group
GERRY TURENNE President & CEO Turenne et Cie (2005) Ltee Management Consultants/ Consultants en Gestion
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ANNUAL REPORT 2011/2012 43
OUR PEOPLE Travel Manitoba’s people are vital links in the provincial tourism industry, consistently demonstrating their dedication
to enhancing tourism in Manitoba through program development and administration. Our people are committed to fiscal responsibility,
accountability and generating solid results.
ROW 1: Lindsay Penner, Yan Cong, Colin Ferguson, Michel LaRivière ROW 2: Brigitte Sandron, Ryan Schultz, Cathy Senecal, Lilian Tankard, Carol McDonald, Leigh Ens ROW 3: Lyall Wilson, Lori Klan, Cindy Perrett, Laurenda Madill, Karla Pratt, Claudine Gervais, Dené Sinclair ROW 4: A.J. Kelly, Diane Bobbitt, Lori Schmitt, Doug Evans, Stephanie Bachewich ROW 5: Rick Gaunt, Linda Whitfield, Rebecca McKie, Mark Clarke ANNUAL REPORT 2011/2012 43
MAKING CONNECTIONS44
“ In 2012, the Interlake Tourism Association has increased its partnership with Travel Manitoba. We believe that partnering with Travel Manitoba allows our Association to stretch our marketing much further than if we tried to do it alone.”
GAIL MCDONALD, Manager, Interlake Tourism Association
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ANNUAL REPORT 2011/2012 45ANNUAL REPORT 2011/2012 45
FINANCIAL STATEMENTSFor the year ended March 31, 2012)
Independent Auditor’s Report 46
Financial Statements
Statement of Financial Position 47
Statement of Operations 48
Statement of Changes in Net Assets 48
Statement of Cash Flows 49
Summary of Significant Accounting Policies 50
Notes to Financial Statements 52
MAKING CONNECTIONS46
To the Members of TRAVEL MANITOBA,
We have audited the accompanying financial statements of TRAVEL MANITOBA, which comprise the statement of financial position as at March 31, 2012, and the statements of operations, changes in net assets and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.
MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL
STATEMENTS
Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian generally accepted accounting principles, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
AUDITOR’S RESPONSIBILITY
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
OPINION
In our opinion, the financial statements present fairly, in all material respects, the financial position of TRAVEL MANITOBA as at March 31, 2012 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.
Chartered AccountantsWinnipeg, ManitobaJune 27, 2012
Tel/Tél.: 204 956 7200Fax/Téléc.: 204 926 7201Toll-free/Sans frais: 800 268 3337www.bdo.ca
BDO Canada LLP/s.r.l.700 – 200 Graham AvenueWinnipeg, MB R3C 4L5 Canada
MAKING CONNECTIONS46
INDEPENDENT AUDITOR’S REPORT
BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms.
BDO Canada s.r.l., une société canadienne à responsabilité limitée, est membre de BDO International Limited, société de droit anglais, et fait partie du réseau international de sociétés membres indépendantes BDO.
ANNUAL REPORT 2011/2012 47
STATEMENT OF FINANCIAL POSITIONMarch 31 2012 2011
ASSETS
Current Assets
Cash and short-term deposits (Note 2) $ 1,215,653 $ 787,905 Trade accounts receivable 621,892 1,274,550 Prepaid expenses 35,988 29,740
1,873,533 2,092,195
Due from the Province of Manitoba (Note 3) 150,413 204,727
Capital assets (Note 4) 131,033 128,015
$ 2,154,979 $ 2,424,937
LIABILITIES AND NET ASSETS
Current Liabilities Accounts payable and accrued liabilities $ 1,273,683 $ 1,234,042
Deferred revenue 78,852 -
1,352,535 1,234,042Retirement allowances and
other benefits payable (Note 5) 454,633 441,434
1,807,168 1,675,476Contingencies and commitments (Note 7)
Net Assets
Unrestricted 141,778 546,446 Restricted for purchase of capital assets 75,000 75,000 Invested in capital assets 131,033 128,015
347,811 749,461
$ 2,154,979 $ 2,424,937
ANNUAL REPORT 2011/2012 47
Director
Approved on behalf of the Board of Directors:
Director
The accompanying summary of significant accounting policies and notes are an integral part of these financial statements.
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STATEMENT OF OPERATIONSFor the year ended March 31 2012 2011
Revenue
Province of Manitoba Operating $ 7,613,000 $ 7,602,000 Other initiatives – Federal and provincial funding 1,839,500 2,475,600 Partnership and leveraged marketing 712,446 493,880 Other 22,526 9,959
10,187,472 10,581,439
Expenditures
Marketing and industry development 8,442,340 7,822,996 Visitor services 1,173,506 1,448,637 Corporate services 953,784 782,805 Amortization 12,099 16,598 Contribution to Manitoba Homecoming Inc. 7,393 315,000
10,589,122 10,386,036 Excess (deficiency) of revenue over
expenditures for the year $ (401,650) $ 195,403
STATEMENT OF CHANGES IN NET ASSETSFor the year ended March 31 2012 2011
Restricted for Purchase Invested in Unrestricted of Capital Assets Capital Assets Total Total
Net assets, beginning of year $ 546,446 $ 75,000 $ 128,015 $ 749,461 $ 554,058
Excess (deficiency) of revenue over
expenditures for the year (389,551) - (12,099) (401,650) 195,403
Acquisition of capital assets (15,117) - 15,117 - -
Net assets, end of year $ 141,778 $ 75,000 $ 131,033 $ 347,811 $ 749,461
The accompanying summary of significant accounting policies and notes are an integral part of these financial statements.
ANNUAL REPORT 2011/2012 49ANNUAL REPORT 2011/2012 49
STATEMENT OF CASH FLOWSFor the year ended March 31 2012 2011
Cash Flows from Operating Activities
Excess (deficiency) of revenue over expenditures for the year $ (401,650) $ 195,403 Adjustment for non-cash items Amortization 12,099 16,598 Loss on disposal of equipment - 23,825
(389,551) 235,826 Changes in non-cash working capital Trade accounts receivable 652,658 527,055 Prepaid expenses (6,248) 27,388 Accounts payable and accrued liabilities 39,641 (527,038) Deferred revenue 78,852 -
764,903 27,405
Due from Province of Manitoba 54,314 19,706
Retirement allowances and other benefits payable 13,199 (50,486)
442,865 232,451
Cash Flows from Investing Activities
Acquisition of capital assets (15,117) (22,626) Disposition of capital assets - 2,625
(15,117) (20,001)
Net increase in cash and cash equivalents 427,748 212,450
Cash and cash equivalents, beginning of year 787,905 575,455
Cash and cash equivalents, end of year $ 1,215,653 $ 787,905
The accompanying summary of significant accounting policies and notes are an integral part of these financial statements.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESFor the year ended March 31, 2012
Basis of Reporting The financial statements of the Organization have been prepared in accordance with Canadian generally accepted accounting principles.
Capital Assets Capital assets are recorded at cost less accumulated amortization and are amortized on a declining balance basis over the estimated useful lives of the assets at the following rates:
Computer hardware 30% Computer software 30% Furniture and equipment 5% Leasehold improvements 5%
Revenue Recognition The Organization follows the deferral method of accounting for contributions. Grant revenue is recognized in the period earned. Partnership and marketing revenue are recognized when services are rendered if the amount to be received can be reasonably estimated and collection is reasonably assured.
The Organization recognizes revenue arising from non-monetary transactions in the period when services have been rendered if the amount to be received can be reasonably estimated and collection is reasonably assured.
Financial Instruments The Organization classifies its financial instruments as follows based on the purpose for which the asset was acquired and follows the disclosed accounting policy for each category.
Assets/Liability Category Measurement
Cash and short-term deposits Held for trading Fair value Trade accounts receivable Loans and receivables Amortized cost Due from the Province of Manitoba Loans and receivables Amortized cost Accounts payable and accrued liabilities Other financial liabilities Amortized cost
Held for trading items are carried at fair value, with changes in their fair value recognized in the statement of operations.
impairment.
Transaction costs are expensed as incurred.
All transactions related to financial instruments are recorded on a settlement date basis.
ANNUAL REPORT 2011/2012 51ANNUAL REPORT 2011/2012 51
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESFor the year ended March 31, 2012
Retirement Allowances and The Organization provides retirement allowance and pension benefits to its employees.
Retirement allowances are provided to certain qualifying employees. The benefits are provided under a final pay plan. The costs of benefits earned by employees are charged to expenses as services are rendered. The costs are actuarially determined using the projected benefit method and reflect management’s best estimates of the length of service, salary increases and ages at which employees will retire. Actuarial gains and losses are recognized in income immediately.
Employees of the organization are provided pension benefits by the Civil Service Superannuation Fund (“the Fund”). Under paragraph 6 of the Civil Service Superannuation Act, the Organization is described as a “matching employer” and its contribution toward the pension benefits is limited to matching the employees’ contributions to the Fund.
In addition, an individual has entitlement to enhanced pension benefits. The plan is based on final pay and is indexed. The cost of the benefits earned by the employee is charged to expenses as services are rendered. The cost is actuarially determined using the projected benefit method and reflects management’s best estimate of salary increases and the age at which the employee will retire.
Restricted Fund for A fund has been established by the Board of Directors in order to finance the future acquisition of capital items which are not funded by the Province of Manitoba through the provision of operating grants. Charges to the fund will occur at the discretion of the President and Chief Executive Officer. Any future redesignation of the fund balance would be subject to approval by the Board of Directors.
Use of Estimates The preparation of financial statements in accordance with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from management’s best estimates as additional information becomes available in the future.
New Accounting Pronouncements In December 2010, the Accounting Standards Board and Public Sector Accounting Board (“Boards”) issued new standards for not-for-profit organizations (NPOs) as follows:
For government (public sector) NPOs they have a choice of Public Sector Accounting standards with the current series of NPO-specific standards added with some minor changes or Public Sector Accounting standards. The Boards require NPOs to adopt their respective standards for year ends beginning on or after January 1, 2012; early adoption is allowed. Until the date of transition to the new standards, all NPOs will continue to follow the current Canadian Institute of Chartered Accountants Handbook – Accounting Part V – Pre-Changeover Standards.
The Organization plans to adopt Public Sector Accounting standards with the current NPO-specific standards, however has not yet determined the impact of this change on its financial reporting.
Other Employee Future Benefits
Acquisition of Capital Assets
MAKING CONNECTIONS52 MAKING CONNECTIONS52
NOTES TO FINANCIAL STATEMENTSFor the year ended March 31, 2012
1. NATURE OF ORGANIZATIONTravel Manitoba was created as a Crown Corporation on April 1, 2005 under The Travel Manitoba Act as the culmination of extensive consultation and leadership from both the tourism industry and the provincial government. Travel Manitoba’s mission is to grow tourism revenues by harnessing the collective investment in tourism to create strong connections between visitors and Manitoba’s unique experiences. Travel Manitoba collaborates closely and in partnership with the tourism industry and governments to attract visitors to Manitoba, sustaining and creating jobs and businesses in the tourism sector in the province.
Travel Manitoba receives core funding from the Province of Manitoba to facilitate operations and to mobilize public and private resources to further foster the growth and professionalism of the tourism industry in Manitoba. Travel Manitoba is economically dependent on the Province of Manitoba, because it derives a significant portion of its revenue from the Province of Manitoba.
2. CASH AND SHORT-TERM DEPOSITSThe Organization invests all surplus cash into short-term deposits with the Province’s Treasury Division. These deposits are made up of 30, 60 and 90 day callable term deposits.
A dedicated account has been established to safeguard $100,000 for the Organization’s retirement allowance obligation and enhanced pension benefit costs. Interest earned will be retained in the account.
3. DUE FROM THE PROVINCE OF MANITOBAUpon inception on April 1, 2005, the Organization recorded accumulated severance pay benefits receivable and payable of $368,937 transferred from the Province of Manitoba for its employees. This receivable, or portion thereof, for the Organization, will be collected by the Organization as severance benefits are paid to employees on record as at April 1, 2005.
During the year, the Organization reduced the receivable from the government in the amount of $54,314 related to employees no longer employed by the Organization. The receivable from the Province of Manitoba as at March 31, 2012 is $150,413 ($204,727 in 2011).
4. CAPITAL ASSETS
2012 2011
Accumulated Accumulated Cost Amortization Cost Amortization
Computer hardware $ 36,734 $ 19,036 $ 27,825 $ 14,340 Computer software 29,503 27,850 29,503 26,161 Furniture and equipment 22,294 3,494 16,086 2,668 Leasehold improvements 111,644 18,762 111,644 13,874
$ 200,175 $ 69,142 $ 185,058 $ 57,043
Cost less accumulated amortization $ 131,033 $ 128,015$ , $ ,
ANNUAL REPORT 2011/2012 53ANNUAL REPORT 2011/2012 53
NOTES TO FINANCIAL STATEMENTSFor the year ended March 31, 2012
5. RETIREMENT ALLOWANCES AND OTHER BENEFITS PAYABLE
The Organization measures its accrued benefit obligation for each of the retirement allowance and enhanced pension benefits as at March 31 of each year. The most recent actuarial valuation report for the retirement allowance was at April 1, 2012 and the most recent finalized and approved actuarial valuation report for the enhanced pension benefits was at December 31, 2010.
The significant actuarial assumptions adopted in measuring the Organization’s retirement allowance obligation and costs are as follows:
2012 2011
Benefit costs for the year ended March 31 Discount rate 6.00% 6.00% Rate of compensation increase 2.75% 2.75% Employer contributions $ 161,103 $ 125,095
The significant actuarial assumptions adopted in measuring the Organization’s enhanced pension benefit and costs are as follows:
2012 2011
Benefit costs for the year ended March 31 Discount rate 6.00% 6.00% Rate of compensation increase 3.75% 3.75% Employer contributions $ 2,512 $ 1,425 Effect of change in assumptions $ - $ 4,203 Experience loss/(gain) adjustment $ - $ (25,134)
6. FINANCIAL INSTRUMENT RISK MANAGEMENT The Organization is exposed to different types of risk in the normal course of operations, including credit risk and market risk. The Organization’s objective in risk management is to optimize the risk return trade-off, within set limits, by applying integrated risk management and control strategies, policies and procedures throughout the Organization’s activities.
Credit Risk
Credit risk is the risk that one party to a financial instrument fails to discharge an obligation and causes financial loss to another party. Financial instruments which potentially subject the Organization to credit risk consist principally of accounts receivable.
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NOTES TO FINANCIAL STATEMENTSFor the year ended March 31, 2012
6. FINANCIAL INSTRUMENT RISK MANAGEMENT (CONTINUED)
The Organization’s maximum exposure to credit risk without taking account of any collateral or other credit enhancements is as follows:
2012 2011
Trade accounts receivable $ 621,892 $ 1,274,550Due from the Province of Manitoba 150,413 204,727
$ 772,305 $ 1,479,277
Trade amounts: The Organization is not exposed to significant credit risk as the receivable is spread among a broad client base and payment in full is typically collected when it is due. The Organization establishes an allowance for doubtful accounts that represents its estimate of potential credit losses. The allowance for doubtful accounts is based on management’s estimates and assumptions regarding current market conditions, customer analysis and historical payment trends. These factors are considered when determining whether past due accounts are allowed for or written off.
Other amounts receivable: The Organization is not exposed to significant credit risk as non-trade receivables are substantially all from provincial and federal governments.
Market Risk
Market risk is the risk the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, foreign exchange risk and other price risk.
Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. The Organization is not exposed to significant interest rate risk. Its short-term deposits are held in short-term or variable rate products.
The Organization is not exposed to significant foreign currency risk as it does not have any financial instruments denominated in foreign currency and the number of transactions in foreign currency are minimal and the Organization is not exposed to other price risk.
Fair Value
The carrying values of cash and short-term deposits, trade accounts receivable, due from the Province of Manitoba and accounts payable and accrued liabilities approximate their fair value due to the relatively short periods to maturity of these items or because they are receivable or payable on demand.
ANNUAL REPORT 2011/2012 55ANNUAL REPORT 2011/2012 55
NOTES TO FINANCIAL STATEMENTS
For the year ended March 31, 2012
7. CONTINGENCIES AND COMMITMENTS
The Organization has entered into lease agreements for rental of facilities at various locations with total annual payments of $609,608. In addition, the Organization leases computer equipment from the Province of Manitoba. The anticipated charge for the year ended March 31, 2013 is $13,978.
The Organization has access to a loan guarantee with the Province of Manitoba for $1,500,000. The guarantee will enable Travel Manitoba to establish a line of credit up to this amount for the purpose of providing advances and profit guarantees as part of bid proposals and preparation efforts being undertaken in attracting various events to take place in Manitoba. As at March 31, 2012, this line of credit had not been drawn upon.
8. NON-MONETARY TRANSACTIONS
During the current year, the Organization entered into contracts with exchanges of non-monetary services for other non-monetary services with little or no monetary consideration involved. These transactions are within normal business activities and were done in order to carry out the mandate of the Organization.
The Organization has used the fair value of the services that have been given up in order to measure the amount of the transaction as this is the more reliable and accurate measure of the revenue and expenses that have been incurred through these transactions. The aggregate amount of all non-monetary transactions in the current year total $42,581 ($41,827 in 2011).
The Organization has not incurred any gains or losses in the current year with respect to these non-monetary transactions.
9. CAPITAL MANAGEMENT
The Organization considers its capital to comprise its unrestricted net assets, restricted net assets for purchase of capital assets and its net assets investment in capital assets. There have been no changes to what the organization considers to be its capital since the previous period.
The Organization’s operations are reliant on revenues generated annually. The Organization has accumulated unrestricted net assets over its history. A portion of these accumulated funds is retained as working capital which may be required from time to time due to timing delays in receiving its primary funding. The remaining funds are available for the use of the Organization at the Board of Directors’ discretion.
TRAVEL MANITOBA 7th floor – 155 Carlton St. Winnipeg, Manitoba R3C 3H8 1-800-665-0040www.travelmanitoba.com
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