Over the past three years, the department has implemented a tourism advertising campaign

to position the N.W.T. as a desirable tourism destination, in a variety of target marketplaces. Although this general awareness campaign has generated a significant amount of interest within our target markets in Canada, the United States, Japan and Europe, N.W.T. tourism operators are telling us that sales have not reached expectations.

Therefore, the department is adopting a new approach to tourism marketing activities this year. In developing this new approach, we listened carefully to what N.W.T. tourism operators were telling us with respect to: types of marketing activities which provide the best linkages between specific N.W.T. tourism products and key marketplaces; tourism industry attitudes; the general health of the tourism industry in the Northwest Territories, within Canada, and worldwide; and the interests and capabilities of the Tourism Industry Association, and the tourism zone associations.

The basis of the new approach will be to develop product-oriented, cooperative marketing activities and promotional tools, which include a specific point of sale contact.

Our agency of record, Inkit Ltd., in association with Camp and Associates, is currently developing an advertising campaign which will focus on existing saleable N.W.T. tourism products, and will encourage private sector investment in marketing activities.

Economic Development and Tourism will provide the seed money to develop the creative advertising layouts, and anchor space in strategically targeted publications. N.W.T. tourism operators will be invited to participate by purchasing additional space in these publications, to include their company name, address, and telephone number in the advertisements.

The department has contracted a facilitator, the North Group of Yellowknife, to work with the operators to identify strategic linkages between products, and solicit and coordinate operator participation in the program.

By adopting this product-oriented, cooperative approach, and applying these key principles to the department's tourism marketing activities, the N.W.T. tourism industry will continue to provide a significant contribution to the Northwest Territories economy.

Mr. Chairman, I would like now to review the role of parks in the tourism industry, and the benefits provided to the people of the Northwest Territories.

Parks contribute significantly to the economy of the N.W.T. National parks, in particular, are specific brand name destinations that are the essential ingredients for tourism packages sold nationally and internationally. Nahanni National Park Reserve, for example, has an established reputation that draws wilderness enthusiasts from southern Canada, the U.S.A., and Europe.

National parks are important sources of employment in several towns and smaller communities in the N.W.T. For example, Auyuittuq National Park employs 20 people in Pangnirtung, three quarters of whom are Inuit. Three of the five management positions are held by Inuit, and most of the resource management and enforcement staff are Inuit. While any employment is welcome, such park jobs are specifically desirable, because they enable aboriginal residents of small communities, to take full advantage of their traditional skills and knowledge of the land. Total payroll for Auyuittuq for 1992/93 is $722,000.

Parks are also important because they protect wildlife populations and guarantee subsistence harvesting. They thus support the traditional ways of life, that are critical to the economic and social well-being of many small communities.

Mr. Chairman, the department recently joined representatives of the Inuvialuit and the federal government, to sign an agreement to establish Aulavik National Park on Banks Island. After more than ten years of negotiations, the people of Sachs Harbour concluded that this national park would bring important social and economic benefits to their community. The G.N.W.T. supported this negotiation process and worked to ensure that the agreement provided maximum benefits to the community and to the N.W.T.

In addition to national parks, which emphasize conservation, the G.N.W.T. has a system of territorial parks which promote local and tourism use of natural areas.

As a key development in this area, the G.N.W.T. is now seeking transfer of the necessary land to establish Katannilik territorial park in the Soper River valley near Lake Harbour. The community sees important benefits in guiding, outfitting, and accommodating visitors, as well as increased sales for its nationally and internationally known carvings.

Canadian Heritage River Status for the Soper River is an important attraction. Six tour operators now offer Soper River trips, and more operators are expressing interest. The owner of one firm, Bob Maynard of "Country Walkers" in Vermont, was so impressed with the quality of the experience, that he has booked two departures for 1993, and committed 10 percent of the tour profits for environmental education in Lake Harbour.

The emergence of Katannilik and the Soper River as a brand name destination results in benefits for Iqaluit as well. Visitors require stop-over accommodation and charter flights, amongst other services. With Katannilik joining Auyuittuq, two highly regarded territorial historic parks at Kekerten and Quammaarviit, how do you say that? I am almost finished!

---Applause

I wonder if John is really sick!

---Laughter

This is plus the planned new national park near Pond Inlet. The Baffin is acquiring the critical mass to become a world-class destination for the rapidly growing ecotourism market.

In the west, a series of parks in the south Mackenzie have been renovated to expand capacity, and encourage bus tour traffic. Blackstone, Saamba Deh, and Lady Evelyn Falls parks are now substantially improved in order to attract greater numbers of tourists.

Mr. Chairman, consistent with the economic development strategy, the Department is concentrating its tourism facility development initiatives into areas with high potential. There has also been development of facilities along the Dempster Highway, and into the Mackenzie Delta. This system consists of expanded and improved parks, community interpretive signs, roadside pull-offs, promotional facilities in Dawson City, at the beginning of the Dempster highway, and planning for new visitor centre for Inuvik.

These facilities and communities will gain from the national parks established in the northern Yukon, Banks Island, and at the Tuktoyaktuk pingos. Road improvements planned by the Department of Transportation will add considerably to the attractiveness of such a trip.

Mr. Chairman, each year tourism volumes along the Dempster Highway have increased, this year setting a record by surpassing last year's peak by 5,000 people. The opening of the centre in Dawson City, and the developments I have just described, will add to these numbers year after year. Communities along the highway, such as Fort McPherson, as well as Tuktoyaktuk and Inuvik, will benefit from this increasing level of travel.

The Canol Trail also has significant potential as a tourist destination. The Sahtu claim may include support for the establishment of this trail as a tourism destination.

In the interim, the department will be instrumental in assisting the people of the Sahtu, and particularly Fort Norman, in accessing "Arctic Environmental Strategy" funds to undertake the cleanup of discarded material, and stabilize some of the structures which could be considered historically significant.

To take advantage of road access, generally, we have also been working closely with the Department of Transportation to improve the quality of roadside pull-offs and highway signage. Most notable has been the large new sign promoting the Liard valley, which was erected at the Alaska Highway junction.

Attractions such as these provide a wide range of potential visitors with specific destinations and facilities that they can take advantage of. The benefits accrue as these destinations become better known, and more accessible in terms of transportation and locally available services. Parks and visitor services are a necessary and desirable element in our overall tourism promotion and development efforts.

Mr. Chairman, this budget includes ongoing funding for six new economic development officers which were established through supplementary funding in 1991-92.

Concurrent with this initiative, we have and will continue to be responsive to community requests to transfer funding to community councils in order for them to hire economic development officers who will work directly for the councils.

The department should be seen more as a partner than solely as the provider of capital. We must work cooperatively with community businesses to facilitate development and be a catalyst for development.

To this end, better use will be made of available federal program dollars as well as private sector equity in developing new businesses. The Development Corporation will play a larger role in the economy of many smaller communities across the north, and program delivery will be streamlined.

Initiatives we are undertaking such as decentralizing authority for the Business Credit Corporation, and the Business Development Fund will allow more timely action, responsive to community needs.

In terms of overall development of the economy, we are developing new markets for N.W.T. products, maximizing the impact of government expenditure of the northern economy through our "Buy North" program, and development of a northern manufacturing incentive to encourage this sector of the economy. Such an incentive is currently being developed to promote the purchase of northern manufactured goods by government, and those contracting with government, as called for in the recently updated business incentive policy.

Mr. Chairman, as example of the type of role we have outside of program delivery, is the department's role in the decommissioning of the DEW Line facilities.

The department is coordinating an interdepartmental response to this federal initiative, which has resulted in the purchase of surplus equipment for relocation to nearby communities where it will continue to be put to good use.

We will continue coordinating this effort with a view to maximizing the potential benefits from dismantling the remaining facilities. Our efforts will focus on having the contracts broker down sufficiently to make them accessible to as many northern businesses as possible.

The Government of Canada will negotiate a cost sharing arrangement with the government of the United States for dismantling. The final contracting approach will have to fit within the terms of the agreement.

Mr. Chairman, while our participation at Expo '92 did not produce the revenues hoped for, it has been a success in show casing the products and the people of the Northwest Territories to the world. There are risks involved in participation in an event of this magnitude. Those risks were clearly laid out before this House in documents tabled prior to debate on the bill, establishing the revolving fund for Expo '92, as well as in the debate itself.

This Legislature reviewed those risks, and decided that the potential benefits outweighed the risks involved. The international recession, high prices and strikes are all factors that contributed to lower than expected revenues for Expo.

As a result, our participation will cost almost $3.9 million, however, we should not overlook the fact that we have delivered a high quality product in terms of our facility, our service, and our northern products. Our staff have been excellent ambassadors for the north. They have been recognized in the Spanish press as being some of the friendliest on site. Unlike Expo '86 where the turnover of staff was significant, we have had only seven of our 51 staff come home, and three of them were for medical or family reasons. This is an excellent record, and I think that they deserve our thanks for their efforts.

The tourism training group, and other agencies, provided excellent training and orientation to the staff prior to their leaving for Seville, and this has undoubtedly contributed to the continuity, teamwork and excellent spirit that has been demonstrated these past months.

Members should know that the Canada Pavilion in Spain, without factoring in our investment, cost Canada and the provinces of British Columbia, Ontario and Quebec almost $50 million. We spend almost $6 million, and recovered more than $2 million for a net cost of $3.9 million. The provinces and the federal government went in without any opportunity to recover any of their investment. We sold a lot of product, we received excellent exposure for our products and much of what we spent, in fact $2.6 million, was paid to on behalf of northerners in purchasing or towards personnel.

We will be taking advantage of this increased exposure through tourism, arts and crafts, and northern foods marketing. We have made valuable contacts, and inroads, and I believe we can benefit from them over the long-term.

Mr. Chairman, much has been in the news concerning free trade, the Canada/U.S. free trade deal, the North American free trade agreement (N.A.F.T.A.), the G.A.T.T. talks, and initiatives related to reducing trade barriers within Canada have received widespread attention.

We have been monitoring developments and participating in working committees, on all these fronts, for the purpose of ensuring that Northwest Territories interests are maintained, in the form of our continued ability to stimulate the northern economy through government purchasing and contracting practices. The Business Incentive Policy stipulates the measures we will take when contracting for goods or services.

The recent international free trade deals run counter to our practice of providing an incentive to northern business, but does not directly apply to the Northwest Territories.

At the last First Ministers' Conference on the Economy, however, First Ministers directed the federal/provincial/territorial committee of Ministers, on internal trade, to eliminate trade barriers within Canada by 1995. This initiative could directly affect the Northwest Territories, and our ability to maintain the Business Incentive Policy. We will be formally requesting an exemption for the Business Incentive Policy from this initiative.

The recent Constitutional Consensus Report adopted at the Charlottetown meeting has produced a more pressing concern. The report includes a political accord on a Canadian "common market" that will accompany the constitutional amendments. The principles of the political accord could make it unconstitutional to restrict access based on a business location. Although these principles will have to be ratified by a future First Ministers' conference, and are subject to further negotiation, I feel I must notify this Assembly of this governments concern over these potential changes, and note our commitment to making every effort to state our case for maintenance of the principles of the Business Incentive Policy.

Mr. Chairman, the Northwest Territories economy is almost entirely import based. Every dollar we spend eventually ends up in southern Canada, with only a very small multiplier within the territories.

We are a developing economy. More industrialized areas of the country have developed over the past hundred years with the benefit of government protection. The Northwest Territories requires time to catch up with the rest of the country and help to develop a Northwest Territories business community which can be competitive. Thank you, Mr. Chairman.