Destination Marketing Organization

The County has created a new tourism industry-led Destination Marketing Organization (DMO) that will oversee marketing, promotion, and visitor services in Prince Edward County.

At the Special Meeting of Council to discuss the DMO on Thursday April 14 (watch the recording here) Council supported the Staff report and moved forward with recruitment of the inaugural six (6) Directors of the DMO. Following recruitment and review by the Nominating Committee of Council, a slate of eight (8) candidates (7 public members and 1 Councillor) as well as an invitation to the Mohawks of the Bay of Quinte were put forward at the June 7, 2022 meeting of Council and approved. The inaugural Board of Directors can be reviewed here.

A revised draft Visit The County By-Law No. 1 and draft Financial Accountability Agreement with Stay PEC was presented to Committee of the Whole on June 9, 2022 as part of a staff report. The final documents were approved at the June 21, 2022 Council meeting in order to complete legal incorporation of Visit The County.

The first meeting of the Board took place on Monday June 27, 2022. Subsequent meetings and other opportunities to get involved will be shared through the tourism industry channels and/or on VisitPEC.ca.

What is a DMO?

A Destination Marketing Organization (DMO) is a non-profit entity responsible for promoting a community and/or place as an attractive travel destination and enhancing its public image as a dynamic place to live, work and play. They leverage travel as a way to strengthen economic development and provide opportunities for people in their community. A DMO is often responsible for website and social media content, photography and media outreach. They represent the tourism sector and act as the subject matter experts on tourism assets and information. Examples of DMOs include Visit Kingston, Discover Muskoka, or Visit Stratford.

A board of directors will oversee the governance of the DMO. Consultation with tourism industry stakeholders and the broader public will take place winter/spring 2022 to determine the ideal competencies for the board of directors before recruitment for the inaugural board begins.

Why is The County creating a new DMO?

For the last seven years, the municipality has been acting as the DMO for The County, managing the Visit The County brand, providing visitor services, and strategically planning for destination development funded through the municipal tax-supported budget.

The County's Municipal Accommodations Tax (MAT) - a 4% tax charged to visitors who have rented overnight accommodations - has changed the landscape for destination marketing in The County, and it is no longer appropriate for the municipality to deliver destination marketing services. According to Provincial legislation, half of the MAT collected must be spent on destination marketing. Because the MAT is collected from visitors through the tourism sector, the legislation also says that the tourism sector must have a say in how the marketing funds are spent. The year of MAT collection has grossed over one million dollars - read the full report to Council from Thursday, March 24 here.

The new DMO provides the tourism industry with significant input on destination marketing decisions while creating a partnership with the municipality to align with tourism management planning. When the transition to the new DMO is complete, destination marketing and visitor services will no longer be funded through the municipal budget. Half of the MAT proceeds will fund the new DMO and their marketing and visitor services activities. The remaining half of the MAT proceeds will be managed by the municipality, invested in projects that support tourism but also provide benefits to residents, such as parks, boat launches, trails, and tourism management efforts.

What about Destination Management?

Destination Management goes beyond marketing and promotion of a community and incorporates some of the responsibility around management of visitors and the impact of tourism within a destination.

Since not all elements and factors of a community and/or place can be controlled by the DMO, it is critical that they work closely in partnership with local government and community organizations to share the responsibility of destination management. Management elements that would remain within the scope of the municipality include municipally owned parks, beaches, boat launches, trails, wayfinding and other assets and aspects that benefit residents year-round, not just visitors. Management also includes the development of policies and regulations that mitigate the impacts of over-tourism in our community. Management of these assets and policies would continue to be addressed annually by the municipality in the Tourism Management Plan (TMP). The 2022 TMP is was presented to Committee of the Whole on Thursday March 24th - read the full report here.

Project Background

• Tourism is the largest economic sector in Prince Edward County, accounting for more than 31 per cent of jobs [Jobs Per Sector in PEC Ministry of Heritage, Sports, Tourism and Cultural Industries, Province of Ontario, 2017]
• Since 2014, the municipality has been acting as the DMO for The County, managing the 'Visit The County' brand and providing visitor services, funded through the tax-supported municipal budget.
• In 2021, The County implemented a Municipal Accommodations Tax: a 4% tax paid by visitors on overnight stays in roofed accommodations in The County. The MAT is conservatively projected to generate $800,000 in 2021.
• The MAT is governed by provincial legislation that stipulates that half of the revenues must be spent on destination marketing, while the other half can be invested by the municipality in projects that support tourism. Because the MAT is collected from visitors through the tourism sector, the legislation also says that the tourism sector must have a say in how the marketing funds are spent.
• In October 2021, Council directed staff (read the Report here) to begin the process of establishing an arms-length Municipal Services Corporation to lead destination marketing, funded through the MAT revenues. This corporation will be an industry-led organization responsible for tourism marketing, development, and visitor services.
• The December 14, 2021 Council meeting (read the Report here) authorized staff to apply for the certificate of incorporation, selected Councillors John Hirsch, Phil St-Jean, and Bill Roberts as interim directors for the purposes of incorporation, and to bring forward a by-law to formally establish the corporation in February 2022.
• At the December 14 meeting, staff reported on a multi-phased approach to establishing the corporation that includes public consultation. Review the action plan here.

Next Steps - Transitioning to the DMO

There will be a three-phase approach to the transition of tourism work from the municipality to the new DMO. The proposed timeline includes incentivized milestones, time and space for public consultation and stakeholder feedback.

Phase 1 | December - February

• Establish the interim Board necessary for incorporation (the following councillors were identified on December 14 - John Hirsch, Phil St-Jean, and Bill Roberts.)
• Begin public consultation by establishing Have Your Say page and offering a Public Information Session (January 20.)
• Issue Request for Proposal (RFP) for Stakeholder Engagement Facilitator (person or group) to support stakeholder / sector specific consultation sessions around establishment of the board size, composition (key skills, qualifications and competencies), sector/stakeholder representation, partners or non-voting members, governance structure, decision-making processes, and public accountability.
• Draft articles and objects of incorporation, and the required municipal by-law to authorize for legal filing of the new DMO when ready. Filing is done by The County's solicitors, and under the new/updated Ontario Not-For-Profit Corporation Act, filing should be completed within a few days.

Phase 2 | March - April

• RFP for Stakeholder Engagement Facilitator is awarded.
• Stakeholder / sector specific consultation and engagement with the tourism industry takes place via survey and over several facilitated sessions based on sector.
• Stakeholder Engagement Facilitator and Staff summarize consultation findings and share publicly through Have Your Say and tourism industry channels. Second opportunity for stakeholders / sectors to review and confirm findings, or share anything missed or misunderstood.
• Hybrid in-person and online public information and feedback meeting for residents and indirect stakeholders of the tourism sector on Monday April 4th, 7-9pm at Wellington District Community Centre in the Highline Hall. Register to attend (online or in person) by emailing rlamb@pecounty.on.ca.
• Report to a Special Meeting of Council (April 14th) containing the summary of consultation findings, the draft first by-law and supporting documents for legal incorporation, and motion to begin the recruitment process for inaugural DMO Board of Directors based on consultation results.

Phase 3 | April - June

• Recruitment for the inaugural DMO Board of Directors, lead by the Clerks department, takes place through online application staring April 19 and closing 11:59 pm EST on Wednesday May 4, 2022.
• Director applications are presented to the Nominating Committee for review, a slate of six (8) candidates is selected by the Nominating Committee and put forward for appointment by Council. (Subsequent Board appointments can be done by the DMO.)
• Report to Council (June 7, 2022) to appoint the DMO inaugural Board of Directors. The three interim board seats held by councilors John Hirsch, Phil St-Jean, and Bill Roberts would be dissolved at this time.
• Invitation from the Mayor to the Mohawks of the Bay of Quinte to appoint a Director of their selection.
• Report to Committee of the Whole (June 9, 2022) to recommend Council approve the revised draft Visit The County By-Law No. 1 and draft Financial Accountability Agreement with Stay PEC at the June 21, 2022 Council meeting.
• The County's solicitors to file for legal incorporation once the required municipal by-law is passed by Council.

Bonus Phase | June-September

• Establish asset transfer agreements that outlines both the corporations and the municipality's responsibilities related any physical, digital or intellectual assets currently managed by the municipality that support destination marketing activities.
• The inaugural Board, along with consultant(s) and industry partners establish the DMO's draft by-laws, governance structure, and policies in an inclusive and collaborative way. This could include establishing sector-specific subcommittees related to key areas of tourism and recruit members. Subcommittee could include but are not limited to: Accommodations, Food & Beverage, Arts, Nature, Agri-tourism & Experiences, History, Retail, Health & Wellness, and/or Events.
• The inaugural Board recruits and hires its first Executive Director.
• The inaugural Board and its Staff work to develop an inaugural budget.
• The County transfers the DMO portion of 2021 MAT funds to supply the inaugural budget.
• The DMO hosts it's first Annual General Meeting.

These phases take into consideration the time available before peak tourism season hits (May long-weekend.) The municipality will focus on tourism management during the Summer months (May-September), which will allow some time for the new DMO (and the municipality) to settle into their new roles and establish a supportive, collaborative working relationship.

As the new DMO is being built from the ground-up by the community, for the community, it is integral to take a collaborative, iterative and inclusive approach at each phase. It should be anticipated that delays may occur during the transition due to the nature of inclusive relationship building, effective stakeholder engagement, COVID-19 restrictions and to avoid rushed decisions while charting this new course for tourism. This transition will continue past the phases and timeline shown here, this page will continue to be updated as the project progresses and details are available.

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