There was agreement among all stakeholders that some parts of the Northwest Territories tourism industry have been in steady decline as government investment in tourism has been cut back. The government commissioned the Nexus Group to conduct a survey of hotel owners (Nexus Report) and on page 3 the report states:
"As evidence, they pointed to the fact that government investment in tourism marketing that peaked in the early "nineties" at over $1.2 million had fallen to just under $550,000, the lowest of any jurisdiction in Canada. Compounding the cuts in the marketing budget was the elimination of the regional tourism zone associations."
However, the Nexus Report also found that "certain tourism sectors, big game outfitting and aurora viewing have been able to maintain or strengthen their positions in the market place." (p.3).
The committee heard many times that there was vast potential for tourism to provide the residents of the Northwest Territories with a source of income and employment that does not depend on mega projects or the fluctuating price of oil or natural gas. However, there is now a serious need to make the necessary investment to capture this potential. There was general agreement among all stakeholders that there is an urgent need for the development of a strong NWT image or identity and for the promotion of the NWT as a "destination" place.
The committee notes that the Nexus Report states that "many operators felt that increased funding was not the only solution and that government support for the industry could be better rationalized, particularly, in conducting market research and in working closer with the NWTAT (NWT Arctic Tourism Association) in planning for the development of the industry." (p.4)
The committee also notes with interest that the Nexus Report found that "the credibility of estimates about the revenues to be generated from the tax and the cost to the government of collecting the tax was an issue." (p.3) This concern was heard again and again during the public hearings.
Mr. Speaker, now I would ask that my colleague from the committee, Mr. Delorey, continue with our report. Thank you, Mr. Speaker.