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AnnualReport

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									Annual Report 2010
OUR BRAND PROMISE
Victoria is where old-world tradition meets new-world experiences.
Our guests are rejuvenated by fresh ocean air and are inspired by
our warm, island welcome and year round natural beauty.


OUR MISSION
We inspire the world to experience our destination.


OUR VISION
Tourism Victoria will be internationally recognized as a
leader in sustainable tourism development, ensuring Greater
Victoria remains one of the top destinations in the world.


OUR COMMITMENT
Tourism Victoria markets Greater Victoria and Vancouver Island’s
diverse year round tourism products and exceeds expectations.
We deliver progressive, responsible leadership by advocating
sustainable development of the destination for the social, cultural,
environmental, and economic enrichment of our members and
community.
                                                           2010 ANNUAL REPORT



Table of Contents

Leadership’s Message ................................................................................................................................. 2

2010 Key Strategies ................................................................................................................................... 3

Tourism Performance .................................................................................................................................. 4

Destination Marketing ................................................................................................................................ 5

Digital Strategy ......................................................................................................................................... 6

Visitor Services .......................................................................................................................................... 7

Market Development .................................................................................................................................. 8

2010 Olympics ........................................................................................................................................... 9

Travel Trade ............................................................................................................................................... 10

Meeting & Incentive Travel ......................................................................................................................... 11

Travel Media Relations ................................................................................................................................ 12

Member Services ....................................................................................................................................... 14

Corporate Services .................................................................................................................................... 15

Audited Financial Statements ...................................................................................................................... 16
leadership’s message
leadership’s message                                                                                                        2
“Don’t judge each day by the harvest you reap, but by the seeds you plant.” This famous Robert Louis
Stevenson quote truly captures 2010. Together with our members, Tourism Victoria planted many seeds that will begin
to bloom in 2011 and beyond.

The year 2010 will always be remembered as the year Canada hosted the Vancouver Olympic and Paralympic Winter
Games. Though Victoria reaped no immediate benefits, the media coverage we received as the launch city for the
nationwide Olympic & Paralympic Torch Relays, and during the Games themselves, were seeds we planted that will
grow into greater awareness of what B.C.’s capital city and region has to offer visitors.

Victoria was also proudly showcased when the city and region hosted Hockey Night in Canada’s Play On! National
Championships, the TELUS World Skins Game at the Westin Bear Mountain Golf Resort & Spa and the recent live
broadcasts of Entertainment Tonight Canada. Our efforts in supporting world class events and encouraging national
and international media coverage will pay off in visitation in the years to come, as Victoria is consistently positioned
as a gorgeous and dynamic destination.

In the last quarter of 2010 we saw a positive, although minor, growth in U.S. inbound travel to Victoria. We hope as this
sluggish economy recovers this trend will continue specifically in relation to our markets in Seattle and San Francisco.

In Canada, our domestic markets helped sustain us through the last two years; however, with a Canadian dollar on
par and a pent up desire to travel further, it is anticipated that more Canadians will travel south and more globally in
general in the near future.

Therefore, as a city destination that relies on tourism as a significant economic generator, it is critical that we grow
our existing markets while at the same time work with Canada and our province to cultivate new markets. Last year,
Canada received Approved Destination Status in China. This means we are now able to market Victoria to the most
robust economy in the world and our capital city and region are very much on their list of places they want to visit!
We will collectively work to provide them the authentic experiences they seek and link with key operators in China to
promote our destination.

We recognize that many businesses in the tourism sector have had to work harder and wiser than ever before, in order
to persevere through 2010. For many, there were lessons learned around keeping a tighter focus on the core purpose
for each business, on the need to be creative and compelling and on the vital understanding that we are stronger when
we work together in partnership.

As the economy begins to slowly recover, we will need to diligently monitor world events and adjust our planning to
the best of our abilities. We will hold on to the teachings of the past two years and plan for a successful future with
optimism and conviction that we can lead as an important economic driver for the region and sought after tourism
destination for the country. Working with our members, our talented staff and inspired volunteer Board of Directors,
we will proudly market our destination as one of the most beautiful and majestic regions in the world.

Yours in tourism,




Rob Gialloreto                          Deirdre Campbell                         Randy Wright
President and CEO                       Chair                                    Past Chair




2                                                                                                  Tourism Victoria 2010
2010 key strategies
 2010 key strategies
 The annual business plan for Tourism Victoria, which focuses on shorter-term operational details, is aligned with the 2010-
 2012 Strategic Plan. The business plan ultimately separates and breaks down Tourism Victoria’s organizational goals into
 task-oriented objectives which can be managed by sales, marketing, visitor and member services, as well as finance.

 In the 2010 Business Plan and 2010-2012 Strategic Plan, Tourism Victoria identified five key strategies:
 Strategy One
 Brand flexibility and proliferation.

 The full of life brand and the region’s iconic assets will be consistently defined in our target markets. In addition, we are
 committed to the proliferation of our brand message through effective digital support of marketing activities and creative
 integrated digital strategies.

 Strategy Two
 Engage stakeholders for the purpose of enhancing the visitor experience, encouraging repeat visitation and
 delivering value.

 Members and visitors represent two of our most vital stakeholder groups. We will engage our membership through in-person
 events, electronic communication, the Membership Committee of the Board and connecting membership with visitors.

 We will ensure that visitors are afforded the best experience possible by providing first-rate customer service and working
 within the community to identify and support solutions to issues that have a significant impact on the traveller.

 Strategy Three
 Explore and establish sustainable sources of funding.

 Tourism Victoria is funded largely by hotel tax revenue funneled through the municipalities or in the form of grants from
 Tourism British Columbia. This mechanism can be greatly impacted by the economy and result in fluctuations in room rates,
 directly affecting a large part of the organization’s budget. In order to fortify this mechanism, Tourism Victoria must seek
 out new sources of funding.

 Strategy Four
 Maintain and expand transportation access to Greater Victoria by all realistic and sustainable means.

 Victoria, and its island location, has unique challenges and opportunities in the areas of access. The ability to move travellers
 by air and sea is vital to our success in driving the tourism economy. Air access projects, and initiatives designed to enable
 and ease sea travel to Victoria, are of paramount importance to the destination.

 Strategy Five
 Be recognized as a consistently strong organization based on people first.

 Tourism Victoria believes the delivery of its mandate begins and ends with its employees. By establishing a culture that is
 created and nourished by all employees, the organization will be looked upon externally and internally as an employer of
 choice.




  tourismvictoria.com                                                                                                                3
tourism performance
tourism performance
In 2010, the Greater Victoria region welcomed an estimated 3.08 million overnight visitors, generating a direct visitor
revenue of approximately $974 million.


OVERNIGHT VISITORS TO GREATER VICTORIA (Visitors in millions, revenue in $billions)*
                       2005            2006            2007           2008            2009            2010
        Visitors       3.31            3.56            3.63           3.15            2.38**          3.08
        Revenue        1.16            1.19            1.23           1.15            0.97            0.97
        *Data is based on Tourism Victoria estimates provided by additional hotel room tax revenue changes over
        previous years and data from the Tourism Victoria Exit Survey.
        **Originally published in the 2009 Annual Report, this number was derived from the Exit Survey data
        for visitor parties rather than individuals. Due to an anomaly, the 2009 number for individuals cannot be
        extrapolated into a comparative number and therefore will not be restated.



HOTEL OCCUPANCY
     According to data provided by Tourism British Columbia, hotel occupancy in 2010 decreased 0.8% from 2009 levels
     across the Greater Victoria region.

                       2005            2006            2007           2008            2009           2010
        Occupancy      69.1%           68.3%           69.4%          66.4%           63.7%          62.9%


AVERAGE DAILY RATE
    According to data provided by Tourism British Columbia, Greater Victoria’s Average Daily Room Rate (ADR)
    dropped 1.2% across the region.
                       2005            2006           2007            2008            2009           2010
       ADR             $124.42         $126.24        $131.60         $130.60         $122.92        $121.50


Destination Accolades
Victoria is continuously recognized as a world class destination. In 2010, Victoria received the following recognitions and
accolades:
• Top Romantic Destinations - Gayot.com
• Smartest City in Canada - Macleans Magazine
• 8th Best Place to Live in Canada - MoneySense
• Most Cultured City in Canada - Macleans Magazine
• 2nd Most Active City in Canada - Macleans Magazine
• Second Most Walkable City in Canada - Up! Magazine
• Best Small City for 2010 - Mike’s Road Trip “Best of 2010”
• Most Sustainable Small City in Canada - Corporate Knights
• 9th Best City in the U.S. and Canada - Travel+Leisure Magazine
• #3 Micro Cities of the Future, Infrastructure - Financial Times of London
• 4th Best City in The Americas - Conde Nast Travelers’ Readers Choice Awards
• 3rd Best Island in the Continental U.S. and Canada - Travel+Leisure Magazine
• 3rd Best Island in North America - Conde Nast Travelers’ Readers Choice Awards
• #1 Destination to Visit in Canada - TripAdvisor’s Travellers’ Choice Best Destinations Awards
• The Top Canadian Hotspot for Young, Talented Workers - Next Cities, Next Generation Consulting
• 24th Best Destination to Visit in the World - TripAdvisor’s Travellers’ Choice Best Destinations Awards
• 2nd Best Destination for Culture and Sightseeing in Canada - TripAdvisor’s Travellers’ Choice Best Destinations Awards

4                                                                                                     Tourism Victoria 2010
destination marketing
destination marketing
Tourism Victoria’s Destination Marketing department is responsible for consumer advertising, promotions, social media,
market research and brand management. In 2010, Tourism Victoria continued to focus on strong call-to-action advertising
creative with experiential-driven offers. Digital strategies were implemented to expand Tourism Victoria’s presence online.

The Destination Marketing department pursued several advertising opportunities with Online Travel Agencies (OTA) including
a Canadian Tourism Commission campaign with both Expedia and Travelocity. The move to online advertising enabled
Tourism Victoria to geo-target offers while providing exceptional return on investment tracking and valuable statistics.

Tourism Victoria, in collaboration with accommodation, transportation, attraction and activity members implemented a
cooperative marketing campaign with package-based offerings. With this program, Victoria had strong seasonal presence
in the Vancouver, Edmonton, Calgary and Seattle markets. The online cooperative marketing campaigns were implemented
with two OTAs: Travelzoo and TripAdvisor.




               Cooperative Marketing Ad - Destination of the Week: Victoria
       Placement: www.travelzoo.ca Market: Cross Market Promotional Length: Week of May 5, 2010




                              Discover Your Perfect                                                Victoria / Vancouver
                              Getaway                                                              Island Golf
                              Placement: WA State                                                  Placement: Print Ad
                              Ferries Digital Screens                                              in Souvenir Program for
                              and Victoria & Vancouver                                             TELUS SKINS 2010 at
                              Island Visitors Guide                                                Bear Mountain
                              Market: Washington                                                   Market: Canada/Cross
                              State/ Cross Market                                                  Market
                              Duration: Annual                                                     Duration: June 20 to 22




tourismvictoria.com                                                                                                       5
digital strategy
digital strategy
 Accommodation Booking Engine Upgrade
 Tourism Victoria, with feedback and guidance from accommodation member organizations, the Board of Directors and
 Destination Marketing Commission, entered into a partnership agreement with JackRabbit Systems in early 2010. This
 system allows consumers that visit tourismvictoria.com to immediately view room availability, amenities and check room
 rates as matched with the consumer’s desired travel dates for visits to Victoria. The system aligns with consumer trends to
 book direct with accommodation properties.

 tourismvictoria.com – Year over Year Comparison
 As predicted, with the move to JackRabbit, year-over-year page views on tourismvictoria.com were down as the booking
 engine is no longer within the web system. Relatedly, the bounce rate and average time spent on the site have been
 negatively affected as the redirect to the JackRabbit book-direct.com takes visitors outside of tourismvictoria.com. However,
 visits and the percentage of new visits are up over 2009, which is a positive indicator that Tourism Victoria is reaching new
 consumers and there is interest building in visiting our site in general.

                                                                                      Performance Targets
    Performance Indicators
                                                                        2009 Actual      2010 Forecast           2010 Actual

    Unique visitors to tourismvictoria.com                                628,735             650,000               684,330

 m.tourismvictoria.com
 Tourism Victoria developed a mobile website (m.tourismvictoria.com) and application (app) with Discover Anywhere Mobile
 in 2010. One of only a handful of destination marketing organizations in British Columbia to have a mobile app, the
 development of this app compliments the new focus of digital presence in an increasingly online-based market. The app is
 available for iPhone, Blackberry and Android.

 Social Media
 Social Media was identified as a critical element to effectively
 promoting and servicing the Greater Victoria region as a world
 class destination. In early 2010, Tourism Victoria developed a
 Social Media Strategy that was implemented in an ongoing,
 three-stage process.

 Overall, 2010 was a groundbreaking year for establishing
 Tourism Victoria’s social media presence with a strong focus
 on increasing followers, encouraging two-way conversations
 and stimulating engagement between Tourism Victoria’s online
 communities on Facebook, Twitter, YouTube, Flickr and the
 Going Local blog.




 This creative Facebook campaign drove an increase of over 1,400 fans
                                                                            Tourism Victoria’s mobile app offers visitors real-time
  on Tourism Victoria’s fan page: facebook.com/tourismvictoriafan.
                                                                            information on the go.


6                                                                                                            Tourism Victoria 2010
visitor services
 visitor services
 The Tourism Victoria Visitor Centre continues to be a full service information and reservation centre for visitors. As we are
 often the first point of contact with visitors, we have an incredible opportunity to influence length of stay and ultimately
 the economic impact of each visitor to our destination. In 2010, the Visitor Centre generated more than $100,000 in
 commissions earned by selling member products.

 Tourism Victoria staff were pleased to support the BC Ferry Corporation with their Visitor Services goals by having Visitor
 Information Counsellor staff on board BC Ferries during the Vancouver 2010 Olympic and Paralympic Winter Games. Staff
 were extremely busy answering questions, giving directions and providing information both about Victoria as a destination
 and the Olympic and Paralympic Games.

 To further the Visitor Information Counsellor’s understanding of members’ services, the Visitor Services team took part in
 approximately 78 member familiarization (FAM) tours and 45 Coffee Talks in 2010. Additionally, the Visitor Services team
 attended the Victoria Guest Services Network Tradeshow as part of their training program.

 Tourism Victoria is very proud of the Visitor Services team who provide outstanding contributions to customer service. In
 2010, 87% of the Visitor Services staff were nominated for a Victoria Hospitality Award.

                                        Annual Statistics Year over Year 2009/2010
                                                                        2009                  2010           % difference
     Number of Visitor Parties                                            78,195              87,251            + 11.60%



 Community Relations
 Tourism Victoria staff participated in a number of community outreach programs in 2010 including:

 •     Habitat for Humanity’s The Gingerbread House Showcase and the Great Gingerbread Build
 •     United Way of Greater Victoria Workplace Campaign
 •     Annual Bear Wear Fundraiser for Jeneece Place
 •     Bike to Work Week
 •     Jeans Day for the BC Children’s Hospital
 •     Souper Bowls of Hope
 •     BC Children’s Hospital’s Festival of Trees
 •     Mustard Seed Christmas Gift Wrapping
 •     Times Colonist 10K
 •     Big Brothers and Big Sisters Family Hampers
 •     The Bay Centre Spirit of Giving Campaign




 “Build it and they will come!” - Annual Bear Wear Fundraiser              Big Brothers and Big Sisters Family Hampers


 tourismvictoria.com                                                                                                         7
market development
market development
Arts and Culture
Tourism Victoria maintains a strong commitment to arts and culture initiatives
in Greater Victoria. We have developed a great relationship with the arts and
culture communities throughout Greater Victoria and are constantly seeking
new ways to work together.

In 2010 Tourism Victoria continued work with ProArt Alliance in developing the
Bravo! Victoria brand as part of the successful Dine Around & Stay in Town
promotion. The 2010 Vacation Guide featured an arts and culture image on the
front cover and the guide dedicated eight full pages to celebrating the diverse
offerings in Greater Victoria. In addition, Tourism Victoria populated one of the
most used online events calendar in the Greater Victoria region. Proactive email
blasts were developed and distributed to front desk staff on a weekly basis in
order to highlight events around the city that hold great visitor appeal.

Going Green
Tourism Victoria continued to demonstrate and promote sound environmental
practices including:
• Reduced number of courier pickups per week
• Upheld certification as a Climate Smart business
• Continued move to paperless administrative practices
• Maintained or expanded all green practices instituted in 2008/2009                        2010 Vacation Guide Cover
• Enhanced development of the Virtual Vacation Guide, increasing online
    viewing and reducing requests for hard copies
In support of Victoria’s sustainable destination tourism efforts, Tourism Victoria launched a Green Victoria feature site at
tourismvictoria.com/green. Site highlights include a green blog full of members’ latest green news as well as tips to “green”
your trip, your meeting and your business.

Through a unique partnership with VanCity, Tourism Victoria designed and distributed reusable shopping bags to visitors
free of charge. The bags featured local artwork printed on 100% Canadian made material. The ink used to screen print
the design was water soluable and biodegradable. The 700 bags were given out in less than four days and comments from
visitors exceeded expectations.

Sport Tourism
2010 marked year two of Tourism Victoria’s renewed focus on Sport Tourism. Tourism Victoria worked closely with SportHost
Victoria to identify potential bidding opportunities and to create bid packages.

Funding provided by the Greater Victoria Spirit Committee Society enabled Victoria to participate in Vancouver International
Airport’s (YVR) BC Communities Showcase video program. Between October 2009 and the end of the Paralympic Games in
March 2010, these mini films were shown on video screens at
YVR, seen by tens of thousands of passengers each day as well
as online at YVRconnections.com.

Tourism Victoria attended the Canadian Sport Tourism Alliance
2010 Sport Events Congress giving us the opportunity to meet
face to face with national sporting organizations and to sell the
virtues of holding sporting events in Greater Victoria. One of the
biggest successes in 2010 was securing the BMO Skate Canada
National and Junior National Championships for January 2011.

Tourism Victoria continued to support the Times Colonist Open
through sponsorship and provided high definition destination
video that was incorporated in the Golf Channel’s Chasing the
Dream golf show. Support for the GoodLife Fitness Victoria
Marathon continued in 2010 as well - an event that had a $7.1
million economic impact for Greater Victoria in 2010.                  CBC’s Hockey Night in Canada PlayOn Street Hockey
                                                                                Championships 2010 Celebrity Game

8                                                                                                      Tourism Victoria 2010
2010 olympics
2010 olympics
2010 will always be remembered as the year British Columbia hosted the Vancouver 2010 Olympic and Paralympic Winter
Games. Although Victoria and Vancouver Island were not in the spotlight during the Games, some excellent business has
resulted from the event. In addition to Victoria’s inclusion within Tourism British Columbia’s 2010 related initiatives, here are
some key results attributed directly to the Games.

Tourism Victoria worked closely with SportHost Victoria who led the creation of “Where to Train?” a pre-2010 Games training
prospectus highlighting Victoria facilities. Victoria was successful in hosting a curling team from Norway and both the men‘s
and women’s curling teams from China.
In the Travel Trade sector, Tourism Victoria promoted British Columbia as the host province during sales calls and tradeshows
leading up to the Games. In October 2009, Tourism Victoria conducted a FAM tour for 12 travel trade clients in conjunction
with the start of the Olympic Torch Relay in Victoria. During the Games, Tourism Victoria hosted two FAM tours for seven
representatives from some of the largest tour operators in China.

Leading up to the Games, Tourism Victoria’s M&IT department also promoted British Columbia as the host province whenever
possible during sales calls, tradeshows and events. In October 2009, Tourism Victoria conducted a FAM for five meeting
planners in conjunction with the start of the Olympic Torch Relay in Victoria. As a direct result of this FAM, one program
has been confirmed in Victoria for 2011 totalling 400 room nights. M&IT has also received two additional leads for 2012
and 2014.

Tourism Victoria’s Travel Media Relations department assisted in nine Olympic-themed press trips hosting a total of 89
media. Travel Media Relations also assisted with and participated in a total of five Olympic-themed events. During the
Games, Tourism Victoria hosted 48 media from over 10 countries, including NBC’s The TODAY Show.

From October 2009 to March 2010, Victoria garnered an overall audience of 176 million in circulation from print/broadcast/
online coverage. Coverage for The TODAY Show alone: Online Viewership - 119 million (per month) / Broadcast Viewership
- 34 million (daily).



Client Quote:
I just want to take this opportunity to express my sincere thanks to you for your warm and considerate hospitality when I
was in Richmond and Victoria. Of course the tourism resources of your home cities are very impressive and I believe that
Chinese tourists will like them. It can be anticipated that we will have many chances to work together and promote your
destinations in the China market including the corporate MICE market.

- Jun Hao (Albert) Guo, China CYTS M.I.C.E. Service Co, Ltd.




         The TODAY Show in Victoria, February 2010                      Travel Trade China FAM in Victoria, Februrary 2010



tourismvictoria.com                                                                                                             9
travel trade
travel trade
 The Travel Trade department is a group tour planning partner. Our knowledgeable staff help group travel and fully independent
 travel (FIT) tour planners with all aspects of travel planning including lead services, destination information as well as tour
 and itinerary development.
 Key Sales Activities in 2010
 •     Sales Calls - Vancouver, Calgary, Edmonton, Toronto,      •    Canada’s West Marketplace
       Montreal, Seattle, Portland and San Francisco             •    Rendez-vous Canada
 •     Sales Mission - Australia/New Zealand                     •    Victoria Clipper Two Nation Vacation - Seattle
 •     Sales Mission - Germany/France                            •    National Tour Association
 •     Sales Mission - United Kingdom                            •    US Tour Operators Association
 •     Spring Showcase Canada - China                            •    World Routes Conference
 •     Fall Showcase Canada - Asia                               •    Cruise3sixty
 •     Canadian Inbound Tourism Association Asia Pacific
 Key Successes in 2010
 Travel Trade experienced an overall increase in FAM tours, not only in number, but from key accounts and key geographic
 markets. The department welcomed over 600 tour operators and travel agents to the destination on FAM tours or by
 providing Attraction Passes.

 The signing of Approved Destination Status (ADS) for Canada meant an influx of FAM tours from China including two
 Meeting, Incentive, Conference and Exhibitions (MICE) buyers groups; one key account FAM tour; and one Super FAM which
 was comprised of senior officers of all the major tour operators in China.

 In 2010, Travel Trade delivered two presentations to members. One was on market demographics and trends covering all
 markets, and a second was dedicated to the Chinese market and was delivered in conjunction with Tourism British Columbia.




             Showcase Canada – Asia, October 2010                            Destination Training, Australia, June 2010


 Key Performance Measures
     Travel Trade Activity Report                                                       Activity Targets
                                                                      2009 Actual          2010 Target          2010 Actual
     Sales Calls                                                           178                  185                   196
     Tradeshows                                                             16                    11                      10
     Leads                                                                 445                  300                   366
     FAM Tours                                                              46                    50                      59
     Travel Trade Visits (Individuals)                                      50                    75                      81
     New Programs by Tour Operators                                         6                     6                       9
     Co-Op Programs                                                        N/A                    15                      14

10                                                                                                         Tourism Victoria 2010
meeting & incentive travel
meeting & incentive travel
The M&IT department is the primary resource for meeting planners and convention organizers considering Victoria as their
event destination. Our M&IT sales staff help identify products, services and facilities that will help ensure a successful,
memorable event or meeting.
Key Sales Activities in 2010
•     Sales Calls - Vancouver, Calgary, Edmonton, Toronto,     •   Meeting Planners International (MPI) World Education
      Ottawa and San Francisco                                     Congress - Exhibitor
•     Vancouver Client Event                                   •   Trailblazers
•     CTC Canada LIVE - Seattle                                •   Site SoCal - Sponsor
•     IncentiveWorks - Exhibitor                               •   Hosted four FAM tours
•     Canadian Society of Association Executives - Exhibitor

Key Successes in 2010
The Vancouver client event achieved an 86% increase in attendance by Lower Mainland meeting planners over the previous
year.

M&IT hosted seven Canadian meeting planners on a FAM tour to the destination and as a result Victoria won a piece of
business for 2014 before the FAM was even complete.

MPI’s World Education Congress in Vancouver presented an opportunity to host a post-tour to Victoria in partnership with
the Victoria Conference Centre for eight U.S. meeting planners.

M&IT also partnered with the Canadian Tourism Commission to host nine qualified U.K. meeting planners to Victoria,
Vancouver and Whistler for a six day FAM experiencing all that B.C. has to offer.

M&IT leveraged relationships with the Canadian Tourism Commission, Tourism Vancouver and Tourism Whistler to be
included in their sponsorship of the Site SoCal Annual Holiday Event for Southern California meeting planners.


               Leads by Geographic Origin                                     Leads by Market Segment


                                                                            Corporate
                                                                              29%
                                                                                                    Association
                                                                                                       49%
                                                                    Third-party
                                                                        7%
                                                                           SMERF
                                                                            9% Government
                                                                                  6%




Key Performance Measures
    M&IT Activity Report                                                                Activity Targets
                                                                         2009 Actual      2010 Target      2010 Actual
    Sales Calls                                                              71                70              72
    Tradeshows                                                                6                 5               6
    Client Events                                                             2                 2               2
    Prospects                                                               322               300             277
    Leads (RFP's)                                                            64                60              45
    Confirmed Room Nights                                                   13,582           10,000           17,699
    FAM Tours                                                                 2                 2               4
    Site Inspections                                                         20                18              16
    Conference Services                                                     N/A               250             366

tourismvictoria.com                                                                                                     11
travel media relations
travel media relations
The Travel Media Relations department provides assistance to journalists at home and abroad filing stories about Victoria
as a travel destination. We help with story development and provide resource materials and background information on
Victoria and the surrounding area.

Key Activities in 2010
•     Media Calls/Events - Vancouver, Calgary, Toronto, Seattle, San Francisco, Los Angeles and New York
•     Canada Media Marketplace
•     GoMedia Marketplace
•     Travel Media Association of Canada
•     Society of American Travel Writers

Key Successes in 2010
The Travel Media Relations department strengthened relationships with our destination marketing organization partners
to leverage the Vancouver 2010 Olympic and Paralympic Winter Games resulting in media visits to Victoria from several
countries including the United States, Australia, Korea, China, Germany, France, Finland, Sweden, Russia and Ghana.

The Travel Media Relations department achieved a significant increase in broadcast coverage over 2009, quadrupling the
number of placements and reaching over nine times as many viewers. Audiences of 135 million saw Victoria on television
programs such as The TODAY Show, ET Canada and Evening Magazine among others.

The Travel Media Relations department hosted over 215 journalists from 13 countries.

 Notable Quotes from 2010
“Victoria is so much more       “Don’t make the mistake of     “Every time I hop on a           “For such a small city,
than gardens and tea.           trying to see Victoria on a    floatplane or take the ferry to   Victoria is packed with
The British flavor too is        day trip from the mainland.    Vancouver Island, I feel like    activities for young families –
becoming infused with multi-    You’ll spend too much time     I’m going on a great journey:    even for very young children
cultural energy, including      travelling and not enough      beautiful scenery, a relaxed     – so much so, it was hard to
the growing presence of         exploring.”                    pace, a top restaurant scene     know where to start.”
native or “First Nations”                                      with locals creating some of
tourism and the diversity       – Trudie McConnochie, New      the most inventive cuisine       – Janeen Christoff, Family
of international cuisine and    Idea Magazine, November        on the West Coast.”              Getaways, Winter 2010
colourful festivals.”           2010
                                                               – Rob Feenie, Western Living
– Alison Gardner, The Triton,                                  Magazine, September 2010
March 2010
 Key Performance Measures
    Travel Media Relations Activity Report                                                Activity Targets
                                                                          2009 Actual      2010 Target        2010 Actual
    Media Calls                                                                 80                85                 85
    Tradeshows                                                                   4                 4                  4
    Media Events                                                                 5                 5                  5
    Leads                                                                      198               230                282
    FAM Tours                                                                   28                30                 16
    # of media opportunities per FAM Tour                                      143               155                 90
    Media Visits (Individuals)                                                 129               130                126
    # of Placements - Print                                                    287               300                232
    # of Impressions - Print (circulation - millions)                           32                35                25
    # of Placements - Broadcast                                                 10                20                43
    # of Impressions - Broadcast (Based on online viewership
                                                                                15               100                135
    per month - millions)
    # of Placements - Social Media (online publications, blogs,
                                                                               N/A               600                545
    twitter)
    Newsletters                                                                 28                22                14

12                                                                                                     Tourism Victoria 2010
travel media relations
travel media relations

                                        Media Coverage Highlights




                                                                         New Idea Magazine
                                                                         New Zealand, November 2010
                                                                         Article title: Vancouver Island:
                                                                         Finding Victoria’s Secret
                                                                         Author: Trudie McConnochie
                                                                         Circulation: 316,209
                                                                         Ad equivalency: $37,520 CDN
                                                                         As a result of August 2010 media visit




Sunset Magazine
U.S., September 2010
Article title: Live the slooow life -
if only for a weekend
Author: Rachel Levin
Circulation: 1,232,559
Ad equivalency: $459,060 CDN
As a result of Canada Media
Marketplace meeting




                                                    The Globe & Mail
                                                    Canada, July 2010
                                                    Article title: Victoria: One Day, 10 Stops, less than $30
                                                    Author: John Lee
                                                    Circulation: 369,450
                                                    Ad equivalency: $7,875 CDN
                                                    As a result of June 2010 media visit



tourismvictoria.com                                                                                               13
member services
member services
Tourism Victoria’s active members totalled 837 at the end of 2010. While welcoming 108 new members to the organization
during 2010, cancelled members reached 130, 36% of whom sited reasons of financial constraints or business closures,
definitely a continued impact of tough economic times.

Throughout the year Tourism Victoria continued a commitment to improve member retention, engagement and satisfaction
through various means such as encouraging members to attend mixers, Maximize your Membership Workshops and CEO
Morning Chats, conducting follow up with new members and distributing information about member benefits and marketing
opportunities.

Two identical informational membership surveys were conducted in order to gauge member satisfaction and engagement
rates in Tourism Victoria and in the various areas of business that Tourism Victoria conducts. The surveys were distributed
via the Membership Matters eNewsletter and completed by a total of 185 respondents, 105 in the summer survey and 80 in
the winter. Some brief highlights from both surveys:

•    Over 50% of respondents had attended a Mixer in 2010.
•    Over 90% felt that they understand what Tourism Victoria does as a destination marketing organization, believe in
     Tourism Victoria as a leader both in the in the tourism industry and in the community and trust Tourism Victoria to
     market Victoria as a destination.
•    A full 88% of respondents felt satisfied with their Tourism Victoria membership and close to 80% felt connected with
     Tourism Victoria.

Tourism Victoria has continued with a number of annual events including the Annual General Meeting, Member Forum, Golf
Tournament and Sales & Marketing Plan Input Sessions. The organization also introduced a number of new events, based on
industry feedback, including the Travel Trade Geographic Market Update, China ADS Workshop and Social Media Workshop.

Advocacy
Tourism Victoria continued to advocate issues directly relating to the tourism industry in Greater Victoria and British Columbia
including tourism infrastructure development, sustainable industry funding, Inner Harbour development, environment and
sustainable tourism initiatives, downtown street issues and policing, inbound and local tourism transportation and community
development planning.

Member Testimonial
I am fairly new to Victoria, having just moved here 15 months ago. I was the Publisher for Where Magazine which is
a franchise owned by Black Press when I first arrived here. I started attending the Tourism Victoria Mixers and found
them to be an extremely valuable opportunity to network with business owners and stakeholders in the tourism industry
with whom I would potentially be doing business. I have found that the venues hosting the Mixers to be professional
and network friendly. As a result of attending these Mixers, I have actually secured business leads which have lead to
business transactions. Now that I am the Executive Director for the Victoria Dragon Boat Festival, I am going to welcome
the opportunity to network with prospective sponsors of our Festival as well as current stakeholders. Our Festival draws
visitors from all over North America and Tourism Victoria provides a prime opportunity to market our event to not only North
America, but to the world as well.

- Linda Tesser, Victoria Dragon Boat Festival Society




                                Annual Christmas Luncheon and Elections Meeting, December 2010

14                                                                                                       Tourism Victoria 2010
corporate services
corporate services
The Finance and Corporate Services department manages the organization’s budgets and financial reporting, provides
payroll and human resource administration, and oversees office management. This department also manages the
organization’s Information Technology (IT) network, and internal digital strategies including website development, search
engine optimization and outsourced IT/Web support contractors.

In early 2010, Finance and Corporate Services implemented a new digital employee manual and an online leave management
program to assist in our organization’s environmental and efficiency efforts.

Tourism Victoria continued the employee Performance Development Plan (PDP) throughout 2010, a performance measurement
system that was introduced in 2009. In 2010, Tourism Victoria also introduced the Points for Performance Incentive Plan.
The Points for Performance Incentive Plan rewards achievements of pre-determined individual and corporate goals.

The Tourism Victoria corporate clothing line continued to expand this year to recognize and reward the loyalty shown to our
organization by staff, while also showcasing our brand. We truly believe that promoting a positive corporate culture assists
in achieving the other four goals as set out in our strategic plan.

As an accredited organization of the Destination Marketing Accreditation Program (DMAP), Tourism Victoria has continued
to ensure the organization is meeting or exceeding DMAP standards.

Corporate Recognition & Awards
Destination Marketing Organization Professional Excellence Award
BC Destination Marketing Organization Association

Finalist: Employer of the Year Award
2010 Greater Victoria Business Awards

Finalist: Business Leader of the Year, Rob Gialloreto
2010 CFAX 1070 Community Awards

Finalist: Hospitality/Tourism
2010 Business Examiner Awards

Finance
The Greater Victoria Visitors and Convention Bureau’s 2010 fiscal year resulted in a net operating surplus of $122,122. This
net surplus has increased the organization’s unrestricted equity to approximately $193,000, of which a minimum of 50% will
be transferred to the restricted Reserve Fund. The Reserve Fund was revised by the Board of Directors in early 2011 and
going forward will be specifically designated to provide for operating costs, for a period of up to six months, in the event
of a significant economic decline.

Overall revenue decreased by 7%, or $266,171, in comparison to 2009. Staff continued to closely monitor expenses
throughout the year in order to assist in stabilizing the organization’s financial health and were successful in preventing
overspends.

The Provincial Government City Stays funding program continued to assist in increasing our marketing capabilities throughout
2010; however, those funds decreased by $150,000. Additional hotel room tax (AHRT) revenue increased by almost 1%
over 2009 revenue, after two straight years of decline totaling almost 23%. Member services revenue, including dues and
advertising fees, increased slightly from 22% to 24% of overall revenue throughout 2010.

Staff completed grant applications to Greater Victoria area municipalities in 2010, seeking support for the operation of
Tourism Victoria’s Visitor Centre. The City of Victoria, District of Saanich, District of Oak Bay, Township of Esquimalt, and
Town of View Royal once again supported our organization with operating grants of $47,500, $36,000, $3,375, $1,957 and
$1,008 respectively. The Town of Sidney and the District of Sooke supported our organization by participating as municipal
members.

Continuing on the success of the 2009 Online Travel Auction, Tourism Victoria partnered with De Armond Management and
successfully achieved the budgeted goal of $30,000 in revenue.



tourismvictoria.com                                                                                                       15
     Financial Statements of



     GREATER VICTORIA
     VISITORS & CONVENTION
     BUREAU

     Year ended December 31, 2010




16                                  Tourism Victoria 2010
          ABCD
                                           KPMG LLP
                                           Chartered Accountants
                                           St. Andrew’s Square II                                               Telephone            (250) 480-3500
                                           800-730 View Street                                                  Telefax              (250) 480-3539
                                           Victoria BC V8W 3Y7                                                  Internet             www.kpmg.ca




                                                        Independent Auditors' Report

          To the Members of Greater Victoria Visitors & Convention Bureau
          We have audited the accompanying financial statements of the Greater Victoria Visitors & Convention Bureau
          which comprise the balance sheet as at December 31, 2010, the statements of operations, changes in fund
          balances and cash flows for the year then ended, and notes, comprising 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.
          Auditors' 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 our 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, we consider 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 that 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 the Greater
          Victoria Visitors & Convention Bureau as at December 31, 2010 and its results of operations and its cash flows for
          the year then ended in accordance with Canadian generally accepted accounting principles.
          Report on Other Legal and Regulatory Requirements
          As required by the Society Act (British Columbia), we report that, in our opinion, these principles have been
          applied on a basis consistent with that of the preceding year.




          April 4, 2011
          Victoria, Canada
                                                KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG
                                                network of independent member firms affiliated with KPMG International Cooperative
                                                (“KPMG International”), a Swiss entity.
                                                KPMG Canada provides services to KPMG LLP.

tourismvictoria.com                                                                                                                                   17
     GREATER VICTORIA VISITORS & CONVENTION
     BUREAU
     Balance Sheet

     December 31, 2010, with comparative figures for 2009

                                                                   2010                2009


     Assets
     Current assets:
         Cash                                                $   285,385   $       164,047
         Short-term deposits (note 2)                            178,206           177,049
         Accounts receivable                                     381,127           284,923
         Inventories                                               2,707             3,337
         Prepaid expenses                                         40,216            34,923
                                                                 887,641           664,279

     Capital assets (note 3)                                      80,888           137,499

                                                             $   968,529   $       801,778


     Liabilities and Fund Balances
     Current liabilities:
       Accounts payable and accrued liabilities              $   268,597   $       205,183
       Deferred revenue (note 4)                                 285,110           277,780
       Current portion of long-term debt                          27,365            26,489
                                                                 581,072           509,452

     Long-term debt (note 5)                                      26,922            53,913

     Fund balances
       Internally restricted reserve (note 6)                    140,451           140,451
       Invested in capital assets                                 26,601            57,097
       Unrestricted                                              193,483            40,865
                                                                 360,535           238,413
     Lease commitment (note 7)

                                                             $   968,529   $       801,778


     See accompanying notes to financial statements.


     On behalf of the Board:


                                                  Director


                                                  Director



18                                                                             Tourism Victoria 2010
          GREATER VICTORIA VISITORS & CONVENTION
          BUREAU
          Statement of Operations

          Year ended December 31, 2010, with comparative figures for 2009

                                                                                2010            2009

          Revenue:
              Hotel room tax (note 11)                               $      2,018,133   $   2,000,752
            Advertising campaign recovery                                     489,500         645,000
            Membership services:
                 Membership services                                         414,150         439,250
                 Advertising fees                                            205,174         185,475
                 Retail sales                                                 28,709          30,274
                 Superhost revenue                                             1,080           8,258
                 Sundry                                                      237,614         207,942
                 Direct mail                                                  20,888          21,959
                                                                             907,615         893,158
               Travel auction                                                 29,662          44,543
              Government grants:
                  Municipal                                                    89,840         188,797
                  Visitor services                                            127,066         152,236
               Reservation and ticket commission                              100,942         104,443
                                                                            3,762,758       4,028,929


          Expenses:
              Marketing services:
                 Advertising and publications                                 871,208       1,062,668
                    Media relations                                           348,115         434,415
                    Travel trade                                              437,526         498,052
                    Research                                                   51,832          44,542
                    Meetings and incentive travel                             318,020         358,461
                    Web marketing                                             150,817         162,087
                                                                            2,177,518       2,560,225
                General and administrative                                    508,493         494,125
                Information services                                          583,561         545,122
                Membership services                                           288,979         274,001
                Amortization                                                   82,085          95,188

                                                                            3,640,636       3,968,661

          Excess of revenue over expenses                            $       122,122    $     60,268


          See accompanying notes to financial statements.




tourismvictoria.com                                                                                     19
     GREATER VICTORIA VISITORS & CONVENTION
     BUREAU
     Statement of Changes in Fund Balances

     Year ended December 31, 2010, with comparative figures for 2009

                                        Internally        Invested
                                       Restricted        in capital
                                     Reserve fund           assets        Unrestricted      2010           2009


     Balance, beginning of year      $   140,451     $    57,097      $       40,865 $   238,413 $      178,145

     Excess (deficiency) of
      revenue over expenses                     -        (82,085)            204,207     122,122         60,268

     Transfers relating to:
        Purchase of capital assets              -         25,474             (25,474)          -              -
        Payments on long-term debt              -         26,115             (26,115)          -              -

     Balance, end of year            $   140,451     $    26,601      $      193,483 $   360,535 $      238,413



     See accompanying notes to financial statements.




20                                                                                                 Tourism Victoria 2010
          GREATER VICTORIA VISITORS & CONVENTION
          BUREAU
          Statement of Cash Flows

          Year ended December 31, 2010, with comparative figures for 2009

                                                                               2010           2009

          Cash provided by (used in):

          Operations:
            Excess of revenue over expenses                          $      122,122    $    60,268
            Item not involving cash:
               Amortization of capital assets                                82,085         95,188
                                                                            204,207        155,456

              Change in non-cash operating working capital:
                Decrease (increase) in accounts receivable                  (96,204)        20,906
                Decrease (increase) in inventories                               630        (2,025)
                Decrease (increase) in prepaid expenses                      (5,293)        20,875
                Increase (decrease) in accounts payable and
                  accrued liabilities                                        63,414        (59,026)
                Increase (decrease) in deferred revenue                       7,330         (9,372)
                                                                            174,084        126,814
          Financing:
             Repayment of long-term debt                                    (26,115)       (26,342)
          Investing:
             Purchase of capital assets                                     (25,474)        (8,193)
             Increase in short-term deposits                                 (1,157)          (965)
                                                                            (26,631)        (9,158)

          Increase in cash                                                  121,338         91,314

          Cash beginning of year                                            164,047         72,733

          Cash end of year                                           $      285,385    $   164,047


          See accompanying notes to financial statements.




tourismvictoria.com                                                                                   21
     GREATER VICTORIA VISITORS & CONVENTION
     BUREAU
     Notes to Financial Statements

     Year ended December 31, 2010



     Greater Victoria Visitors & Convention Bureau (the "Bureau") is incorporated under the Society Act
     (British Columbia) and is a non-profit organization as described in paragraph 149(1) of the Income Tax
     Act. Its principal business activity is the promotion of tourism in the Greater Victoria area.


     1.   Significant accounting policies:

          The financial statements of the Bureau have been prepared in accordance with Canadian
          generally accepted accounting principles for not-for-profit organizations using the significant
          accounting policies described below:

          (a) Financial instruments:

              Cash and short-term deposits are classified as held for trading and carried at fair value with
              changes in fair value recognized in income. Accounts receivable, accounts payable and
              long-term debt are all initially recorded at fair value and then carried at amortized cost
              thereafter.

              The fair value of the Bureau's accounts receivable and accounts payable approximate their
              carrying value due to their short term nature. The fair value of the Bureau's long-term debt
              approximates its carrying value as the debt bears interest at a rate approximating current
              market rates.

              Financial instruments that potentially subject the Bureau to concentrations of credit risk
              consist primarily of accounts receivable. Accounts receivable are not concentrated with any
              single entity, which reduces the Bureau's exposure to credit risk.

              The Bureau complies with CICA Handbook Section 3861, “Financial Instruments –
              Disclosure and Presentation”, for the presentation and disclosure of financial instruments.

          (b) Inventories:

              Inventories are recorded at the lower of cost and net realizable value.




22                                                                                            Tourism Victoria 2010
          GREATER VICTORIA VISITORS & CONVENTION
          BUREAU
          Notes to Financial Statements (continued)

          Year ended December 31, 2010




          1.   Significant accounting policies (continued):

               (c) Capital assets:

                      Capital assets are recorded at cost and amortized on a straight-line basis over their
                      estimated useful life at the following annual rates:

                      Asset                                                                                    Rate

                      Tradeshow equipment                                                                  3 years
                      Office furniture and equipment                                                       5 years
                      Computer equipment                                                                   3 years
                      Website development costs                                                            3 years
                      Leasehold improvements                                                  remaining lease term


                      When a capital asset no longer has any long-term service potential to the Bureau, the
                      excess of its net carrying amount over any residual value is recognized as an expense in the
                      statement of operations.

               (d) Revenue recognition:

                      The Bureau follows the deferral method of accounting for contributions. Unrestricted
                      contributions are recognized as revenue in the year received or receivable if the amount can
                      be reasonably estimated and collection is reasonably assured. Revenue from membership
                      dues is recognized on a straight-line basis over the term of the membership. Revenue from
                      advertising spaces is recognized on a straight-line basis over the term of the contract.
                      Government grants are recorded as revenue in the period in which the related expenses are
                      incurred. Reservation and ticket commissions are recognized as revenue when a service
                      has been rendered for which a fee is chargeable. Hotel tax revenue is recognized in the
                      period in which the related room sales occur.

               (e) Use of estimates:

                      The preparation of financial statements in conformity with Canadian generally accepted
                      accounting principles requires management to make estimates and assumptions which
                      affect the reported amounts of assets and liabilities and disclosures of contingent assets and
                      liabilities at the date of the financial statements and the reported amounts of revenue and
                      expenses during the period. By their nature, significant areas requiring the use of
                      management estimates relate to the amounts recorded for amortization of capital assets.
                      Actual results could differ from those estimates.




tourismvictoria.com                                                                                                    23
     GREATER VICTORIA VISITORS & CONVENTION
     BUREAU
     Notes to Financial Statements (continued)

     Year ended December 31, 2010




     1.   Significant accounting policies (continued):

          (f)   Future accounting changes:

                In December 2010, the Accounting Standards Board (“AcSB”) released new accounting
                standards for the not-for-profit sector effective for years beginning on or after January 1,
                2012, with an option to early adopt the new standards.

                For not-for-profit organizations that are not subject to public sector accounting standards, the
                AcSB provided a choice of (a) the accounting standards for private enterprises plus the 4400
                series of Canadian Institute of Chartered Accountants Handbook Sections, appropriately
                modified to fit with those standards, or (b) International Financial Reporting Standards
                (“IFRS”).

                The Bureau is currently examining the potential impact of adopting these new standards.


     2.   Short-term deposits:

          Short-term deposits consist of guaranteed investment certificates bearing interest of
          0.3% - 0.75% per annum.


     3.   Capital assets:

                                                                                        2010              2009
                                                                Accumulated          Net book         Net book
                                                        Cost    amortization            value            value

          Office furniture and equipment      $     151,561 $        151,561 $              - $          5,652
          Computer equipment                        132,495          112,033           20,462           15,340
          Leasehold improvements                    108,241          102,159            6,082            8,534
          Tradeshow equipment                         9,961            7,836            2,125                -
          Website development costs                 167,263          115,044           52,219          107,973
                                              $     569,521 $        488,633 $         80,888 $        137,499




24                                                                                                Tourism Victoria 2010
          GREATER VICTORIA VISITORS & CONVENTION
          BUREAU
          Notes to Financial Statements (continued)

          Year ended December 31, 2010




          4.   Deferred revenue:

                                                                                      2010            2009

               (a) Operating:

                      Tourism Victoria General:
                        Membership dues                                      $     151,606 $       176,936
                        Advertising fees and listings revenue                       97,564          88,293
                        Dine Around Program revenue                                  9,740           5,138
                        Member recoveries                                           25,853               -
                                                                                   284,763         270,367
               (b)    Capital:

                      Capital asset grant revenue                                      347           2,413
                      VanCity Community Grant                                            -           5,000

                                                                             $     285,110 $      277,780



          5.   Long-term debt:

                                                                                      2010            2009

               Term loan bearing interest at prime plus 3%, payable in variable
                monthly blended installments of $2,478, due January 15, 2013. $     54,287 $        80,402

               Current portion of long-term debt                                    27,365          26,489
                                                                             $      26,922 $        53,913

               Annual principal repayments are: 2011 - $27,365; 2012 - $26,922. The debt is secured by a
               general security agreement on all present and after-acquired property of the Bureau.

               Demand bank loan:

               The Bureau has a demand revolving loan arrangement with a commercial bank that permits the
               Bureau to borrow up to $350,000 at the bank's prime rate of interest. The loan is due on
               demand, bears interest at the bank’s prime lending rate and is secured by a general security
               agreement on the Bureau’s assets. This arrangement is unutilized as at December 31, 2010.




tourismvictoria.com                                                                                           25
     GREATER VICTORIA VISITORS & CONVENTION
     BUREAU
     Notes to Financial Statements (continued)

     Year ended December 31, 2010




     6.   Internally restricted reserve:

          To maintain Tourism Victoria’s financial stability, an internally restricted reserve has been
          designated to provide for the costs of any special projects. These internally restricted funds are
          not available for other purposes without the approval of the Board of Directors.


     7.   Lease commitment:

          The Bureau leases the premises it occupies. The lease at 31 Bastion Square is for the period
          October 1, 2008 to September 30, 2018. The lease for the Visitor Centre on Wharf Street is for
          the five-year period ending June 30, 2015. Minimum future lease payments over the next five
          years are as follows:

                                                                  Bastion           Visitor
                                                                  Square            Centre             Total

          2011                                           $       147,131    $       50,328 $       197,459
          2012                                                   149,119            53,828         202,947
          2013                                                   155,084            57,328         212,412
          2014                                                   155,084            64,197         219,281
          2015                                                   157,072            33,783         190,855
          2016 and thereafter                                    448,351                 -         448,351


     8.   Capital management:

          The Bureau defines capital as the amounts included in its fund balances. The Bureau receives
          its principal source of capital through hotel room tax revenues, government grants, and from
          long-term borrowing for major capital expenditures. The Bureau’s objective when managing
          capital is to fund its operations and capital asset additions in order to promote tourism in the
          Greater Victoria area. The Bureau manages the capital structure in conjunction with available
          funds and makes adjustments based on available resources and economic conditions. Currently,
          the Bureau’s strategy is to monitor expenses to preserve capital in accordance with budgeted
          revenues.

          The Bureau is not subject to significant debt covenants or any other capital requirements with
          respect to revenues. Revenues received for designated purposes must be used in accordance
          with those purposes. The Bureau has complied with the external restrictions on the revenues
          received.




26                                                                                             Tourism Victoria 2010
          GREATER VICTORIA VISITORS & CONVENTION
          BUREAU
          Notes to Financial Statements (continued)

          Year ended December 31, 2010




          9.   Financial instruments:

               The Bureau’s cash and short-term deposits are recorded at fair value. Accounts receivable,
               accounts payable and accrued liabilities are recorded in the financial statements at carrying
               amounts which approximate fair values due to the immediate or short-term maturity of these
               financial instruments. The fair value of long-term debt is similar to the carrying amount due to
               the variable rate nature of the debt.


          10. Allocated expenses:

               The Bureau classifies expenses on the statement of operations by function. The Bureau
               allocates certain general and administrative support expenses to departments by identifying the
               appropriate basis of allocating and applying that basis consistently each year. Support salaries
               and benefits are allocated proportionately on the basis of activity in the department. Support
               expenses are allocated proportionately based on the square footage of office space in each
               department. The allocations are as follows:

                                                                                          2010            2009

               Advertising and publications                                     $     100,590 $        90,894
               Media relations                                                         57,686         127,886
               Travel trade                                                           114,119         125,035
               Research                                                                 1,932           1,762
               Meetings and incentive travel                                          114,038         124,960
               Web marketing                                                           51,337          45,372

                                                                                $     439,702 $       515,909




tourismvictoria.com                                                                                               27
     GREATER VICTORIA VISITORS & CONVENTION
     BUREAU
     Notes to Financial Statements (continued)

     Year ended December 31, 2010




     11. Schedule of Hotel Room Tax and Destination Marketing Expenses:

                                                                            2010              2009

         Total hotel room tax revenues were:
            City of Victoria                                      $   2,459,373 $       2,428,670
            District of Saanich                                         115,149           113,316
                                                                      2,574,522         2,541,986
         Retained by the City of Victoria
          for the Victoria Conference
          Centre                                                        556,389           541,234
                                                                      2,018,133         2,000,752

         Advertising campaign recovery                                  489,500           645,000
         Municipal government grants                                          -            98,957
         Sundry                                                          56,331            67,826
                                                                      2,563,964         2,812,535

         Marketing services:
           Advertising and publications                                   871,208       1,062,668
           Media relations                                                348,115         434,415
           Travel trade                                                   437,526         498,052
           Research                                                        51,832          44,542
           Meetings and incentive
             travel                                                     318,020           358,461
           Web marketing                                                150,817           162,087
                                                                      2,177,518         2,560,225

         Visitor information services                                   175,068           163,537
         Amortization                                                    66,885            70,677
                                                                      2,419,471         2,794,439

         Excess of revenue over expenses                          $       144,493 $        18,096




28                                                                                    Tourism Victoria 2010
       Tourism ViCToria 2010 Board oF direCTors

OFFICERS
       Chair                          First Vice Chair
       Randy Wright                   Deirdre Campbell
       Harbour Air Seaplanes          Tartan Group
       Transportation                 Member at Large

       Vice Chair                     Vice Chair
       Dave Cowen                     Mandy Farmer
       The Butchart Gardens           Accent Inns
       Attractions                    Accommodation Under 185 Rooms

       Vice Chair                     Vice Chair
       Reid James                     Pauline Rafferty
       Hotel Grand Pacific            Royal BC Museum
       Accommodation Over 185 Rooms   Greater Victoria Chamber of Commerce




DIRECTORS
       Jim Allard                     Kathleen Burton
       Hyack Air (1981) Ltd.          Ocean River Sports
       Member at Large                Sport & Outdoor

       Don Calveley                   Martin Leclerc
       The Truffles Group Inc.        The Fairmont Empress
       Retail & Restaurants           Member at Large

       Jason Lowe                     Ian MacPhee
       Arbutus Ridge Golf Club        Abbeymoore Manor B&B Inn
       Tourism Vancouver Island       Bed & Breakfasts

       JC Scott
       JC Scott Design Associates
       Arts, Culture & Societies




MUNICIPAL APPOINTEES
       Councillor Lynn Hunter         Jim Griffith
       City of Victoria               District of Saanich
GREATER VICTORIA VISITORS AND CONVENTION BUREAU

                 Administration Office
    4th Floor, 31 Bastion Square, Victoria, B.C., V8W 1J1
              250-414-6999 Fax: 250-361-9733

                      Visitor Centre
         812 Wharf Street, Victoria, B.C., V8W 1T3
             250-953-2033 Fax: 250-382-6539
                     1-800-663-3883

               www.tourismvictoria.com




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