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HomeMy WebLinkAboutCSD-08-077 - Sport Tourism StrategyJ KrT~~R Community Services Report To: Community Services Committee Date of Meeting: September 8, 2008 Submitted By: Mark Hildebrand, Director, Community Programs & Services (x2687) Prepared By: Mark Hildebrand, Director, Community Programs & Services (x2687) Ward(s~ Involved: All Date of Report: August 25, 2008 Report No.: CSD-08-077 Subject: SPORT TOURISM STRATEGY RECOMMENDATION: That the Sport Tourism Strategy (STS} developed by Cameron Hawkins & Associates Inc., dated June 2008, be received; and, That the STS Framework, consisting of the following 5 platforms: Developing Community Capacity, Enhancing Event Impact, Attracting New High Impact Events, Exploring Opportunities for Created Events, and Increasing Community Support and Understanding for Sport Tourism, be approved; and, That staff be directed to review the core and optional recommendations outlined in the STS, and implement the recommendations using existing resources; and, That staff be directed to implement the STS Organizational Model -Option 2 jointly with the City of Waterloo; and further, That the content and considerations that address facility development in the STS be referred back to the Community Services Department to be considered in conjunction with the Leisure Facilities Master Plan, individual facility business cases and the development of future partnerships. BACKGROUND: Sport tourism is an area that many communities have been looking to significantly invest in. Economically, sport tourism is seen to be vital to the community in terms of job creation, economic sustainability and enhancing the revenue generation capacities of key facilities, thus reducing financial impacts on the community and users. For over fifty years the City of Kitchener has been a major host community to significant sport tourism events at the regional, provincial, national and international levels. Within the 2005 Leisure Facilities Master Plan (LFMP), questions emerged relative to sport tourism and where the city's priorities should be in this regard. Questions included: Report No: CSD-08-077 2 what is the City's current role in sport tourism, what is the City's capacity to support sport tourism in the future, • who are the potential partners, • what are the possible economic impacts of sport tourism, and • what future facility requirements are necessary to be competitive at the different levels of the sport tourism market. The LFMP recommended a review of the potential and future roles of the City of Kitchener in the sport tourism market, and to consider a realistic range of facility and operational investments. Policy and decisions emerging from this Strategy address future investment and support to our community in the area of sport tourism, as well as provides key considerations for the future when developing recreation facilities in the Kitchener community. Although not recommended in the LFMP, the completion of the Sport Tourism Strategy was a joint effort between the City of Kitchener and the City of Waterloo. Understanding that there are minor sport groups, who host tournaments, and who operate in both municipalities, as well as instances when the City of Kitchener and City of Waterloo partner when bidding for sport tourism events, it was recognized that a joint strategy could possibly identify ways that the two Cities could complement each other, as well as identify opportunities where efficiencies might be found to support sport tourism in the future. REPORT: Current Situation The City of Kitchener seems to be positioned very well to be successful in the sport tourism market. With a regional population of approximately 450,000 people, and a total market population base in excess of 5,000,000 within a 1.5 hour drive, it is evident that the City of Kitchener is well positioned geographically to provide sport tourism events that can be easily accessed by a number of people. Also, the City of Kitchener has extensive staff and community experience in the sphere of sport tourism on all levels, having hosted over 100 provincial, national and international sporting events in the last 15 years. Staff, through the Enterprise and Operations division, and with the assistance of volunteers has provided operational and facility support for professional, national and international events. However the community has also contributed to many sport tourism events via the 35 minor sport organizations and many adult sport groups who organize their own affordable, recreational, and/or competitive sport tournaments from local to international caliber. Volunteers are the foundation of these groups, serving as executive members, coaches, team managers, special event organizers and fund-raisers. Besides support from local businesses and other partners in the greater community, support is also provided to these volunteers by the City of Kitchener through the Aquatics and Athletics, Enterprise and Operations divisions. There are limitations however which currently restrict our expansion into sport tourism. Currently there is little capacity at City of Kitchener facilities to accommodate for increased sport tourism events. Investigations show that indoor facilities (arenas and aquatic facilities) are at 90% + capacity during peak time periods, accommodating local community programming. For the City's outdoor facilities, although there may be some capacity in the early spring and fall to host tournaments on the City's ball diamonds and stadium, a review of current bookings show that there is little capacity available for the scheduling of tournaments and other events during prime time. Currently, the City of Kitchener is struggling to meet the demand required from community programs, for appropriate outdoor sport fields, within the current field inventory. Report No: CSD-08-077 3 It has also been found that Kitchener's main sports facility (KMAC) has lost some national and international events as the hosting standards and seating capacity requirements have increased. However, staff has adjusted for the changes and continues to look at attracting niche market events that are local, regional and provincial, designed to match current capacity and facility requirements. To increase sport tourism activity in most indoor and outdoor facilities, it would either require an expansion of facility capacity and/or a reallocation of priority for prime time for sport tourism activities. However, to address the first point, the strategy states clearly, and staff agree, that sport tourism events and activities by themselves can not justify the capital costs involved in facility development, nor can it generate the revenues required to sustain operations. The development of new sport facilities must be justified primarily on an established community need. Also, currently broad-based community participation and community competitive programs are the top priority for community use of facilities, except in the instance of KMAC. Any type of reprioritization of facility use, from community use to sport tourism, would require significant consultation and buy in from community sport groups. Not only are they the City's key stakeholders, they are also the volunteers that would be required to either take a lead role or assist with hosting and running sport tourism events. Although the City of Kitchener's current situation implies that presently there is little opportunity to increase sport tourism events, unless additional capacity is acquired (either through facility expansion or reprioritization), the Sport Tourism Strategy suggests that there is room to grow within existing facilities if addressed strategically. Provided in the Sport Tourism Strategy is a framework, which outlines five specific areas of concentration, as well as associated recommendations for staff to consider. The consultants feel that implementing the Strategic Framework is critical, not only to the further development of sport tourism but also to the continued success of current sport tourism events in the community. Sport Tourism Strategic Framework Section ten outlines the five platform framework, as well as the core and optional recommendations that make up the Sport Tourism Strategy. Appendix A provides a summary of the framework and corresponding recommendations in aflow chart. The strategy is built on the following platforms including: 1. Developing Community Capacity, 2. Enhancing Event Impact, 3. Attracting new, high impact events, 4. Exploring Opportunities for creating events, and 5. Increasing community support for and understanding of Sport Tourism. As alluded to above, both City of Kitchener staff and community groups (sport, special interest) pursue and attract sport tourism events to host in the City of Kitchener. First, the Enterprise Division, who operates the Kitchener Memorial Auditorium Complex (KMAC) does, among other events, seek out sport tourism events of local, provincial, national and international caliber. With an interest in keeping the KMAC active throughout the year, staff takes the lead by writing and submitting bids, pulling major stakeholders together as well as attracting and managing the many volunteers necessary to host the event. In the community, many minor and adult sport groups also offer their own tournaments, of various caliber, throughout the year at city facilities. Although they may receive some support from City of Kitchener staff from time to time, these groups take the lead, plan and run their own tournaments with, often times, limited knowledge and aid. Report No: CSD-08-077 4 The Sport Tourism Strategy suggests that increased support to sport tourism organizers and events is critical to ensure ongoing success in Kitchener. The framework provides recommendations to strengthen the organizational and marketing support that the City of Kitchener provides to our community event organizers as well as our own events. First, recognizing that volunteers and volunteer capacity is vital to the success of all sport tourism events, recommendations outline a series of programs specifically directed to assist event organizers in delivering well-managed and sustainable events. Also, suggestions are provided to assist with further developing sport tourism events (when appropriate) through marketing and communication strategies, and developing approaches to help selected events increase economic and community development impacts. In total, the Sport Tourism Strategy makes 17 core and 8 optional recommendations. Staff believes the recommendations have merit, and would like a chance to review, prioritize and determine how they can be implemented using existing resources. Staff acknowledges, that there may be instances where it will not be possible to implement one or more recommendations to the extent or within the timeframe outlined in the strategy due to resource limitations. There may be occasions where the implementation of recommendations may be delayed and/or, if additional resources are required, brought back to Council separately for consideration and approval. Governance and Leadership As outlined in the background of this report, the development of the Sport Tourism Strategy was a joint effort between the City of Kitchener and the City of Waterloo, considering the needs of both Cities and investigating the possible ways of supporting sport tourism as partners. To this end, the consultants reviewed organizational and governance models of other municipalities in Canada and the United States to identify the best organizational structure to manage and provide leadership and support to sport tourism in Kitchener and Waterloo. Generally, it was found in the United States that sport tourism organization bodies were most commonly independent, not-for-profit corporations, while in Canada sport tourism was often housed within a municipally controlled and funded department such as parks and recreation, economic development, or part of an established tourism agency. Although there were not specific examples of formal organizational models where two or more municipalities came together to support sport tourism initiatives, the consultants were able to forward five organizational options, considering the best practices in the industry. Each option differs mainly in the extent that the two municipalities work together. At one end of the continuum, the two municipalities work completely separately on sport tourism initiatives while at the other end, the functions for both municipalities are completely integrated and delegated to an outside group. Section eleven provides more detail on each of the five models as well as the benefits and challenges of each. The five models forwarded in the strategy include: 1. Maintaining completely separate organizations addressing sport tourism, 2. Integrating organizational capacity, marketing and communications initiatives with separate event acquisition and event support initiatives, 3. Fully integrating both organizations, executed by a joint municipal working group, 4. Developing a fully integrated sport tourism commission at arms length, 5. Delegate sport tourism responsibilities to the Regional Destination Marketing Organization. The consultants recommend, and staff agrees that initially the twin cities should adopt option two of the organizational models, integrating organizational capacity, marketing and communications initiatives, while keeping event acquisition and event support initiatives Report No: CSD-08-077 5 separate. It was felt that this option provided opportunities to capitalize on the existing facility inventory as well as the market size, which spans both cities, by positioning Kitchener-Waterloo as one sport tourism destination. It was also felt that this option provided an opportunity to reduce the duplication of efforts that would likely occur if both cities pursued their own separate initiatives for supporting sport tourism. It also begins to acknowledge the fact that many of the sport groups in the area are regional in their scope and serve citizens in both Kitchener and Waterloo, and they would be better served by both cities having similar processes and providing similar support. This option also recognizes and preserves municipal autonomy. It allows each municipality to continue to decide what event opportunities to pursue and the level of staff and financial support appropriate for bid preparation etc. If there were a need and opportunity for joint bids, they would be developed through ad hoc working groups made up of staff from both municipalities. The consultants suggest that, to best support sport tourism initiatives in the Kitchener-Waterloo area, the goal should be to move the organizational model from option two to three in the next three years with the ultimate goal of moving to organizational model four over the next ten years. Staff believes the recommendations have merit however suggest that before any change is made, a status review of the Sport Tourism Strategy is completed including any resource needs that may be required to implement a different organizational model, which would be considered by council. Sport Facility Development Considerations Section eight of the Sport Tourism Strategy outlines a number of sport facility gaps within the City of Kitchener and City of Waterloo, which were determined by an assessment of current facility inventory, market requirements and input received from stakeholders. It also provides a number of options, with significant capital dollar requirements, if the Twin Cities were to consider filling these gaps. However, it is important to note that the consultants did not forward any recommendations for facility development in the Sport Tourism Strategy. Page thirty-five of the Sport Tourism Strategy states, "When considering the development of new sport facilities, it is important to acknowledge that sport tourism activity, in and of itself, cannot justify the capital cost involved in facility development, nor can it generate the revenues required for sustained and viable operations. The development of new facilities must be justified primarily on an established need within the community....... Sport tourism activity may influence building design criteria and provide a periodic source of additional demand, but can not be the primary justification for new facility development." The consultants suggest that there are four issues that should be considered if the City was to look at modifying building design to meet sport tourism requirements, when developing future sport facilities. First, any development of sports facilities also being considered for sport tourism should ensure that it would be able to maintain capacity to host tournaments and events well into the future. As mentioned above, KMAC is already seeing erosion in the events it can host as the facility requirements increase. Any development of new facilities or expansion of existing facilities should meet more than the minimum requirements of the desired events to ensure capacity to host is maintained well into the future. Second, the Cities will have to determine exactly what the purpose of the facility will be, whether that is for broad-based community use/maximizing participation, high level athletic training and/or sport tourism. Consultations found that some local sport organizations aspire to support high performance athletes and believe that municipalities should take a stronger leadership role with respect to providing facilities to meet these needs. However, high performance training facilities have traditionally been provided at university venues or the responsibility of provincial and federal governments. Except for KMAC, the City of Kitchener has continued to focus on developing facilities for broad-based community use and this continues to be the priority focus Report No: CSD-08-077 6 that most municipalities take throughout Canada. Care has to be taken, when investigating the development of future facilities for sport tourism, that those facilities budgeted for based on a community use model, (e.g. to service growth in the City are not sacrificed. Third, the Cities have to determine whether the size and scale of sports facility needed to accommodate sport tourism events is sustainable given the population size to draw from. The strategy states clearly that alone, each City does not have the population base to support the expanded facility requirements for many high level sport tourism events. Any consideration of entry into this level would require partnerships between the Twin Cities and perhaps the Universities as well. Finally, it is possible that the introduction of a sports venue equipped to host sport tourism events will displace expected community use. Therefore it is necessary for the City to address community use priorities at a policy level. This policy needs to clearly outline what the priority is between community use, high performance athlete development and sport tourism. Typically service focuses on the benefits for the majority of the tax base, associated with physical activity, well-being and socialization, youth engagement etc. Competitive and sport tourism would begin to disrupt this programming and intensify accessibility challenges. Besides stating facility use priorities, this policy would address questions such as how much disruption to community use is acceptable, process for accessing space etc. There is value in looking at future sport facility development from a sport tourism lens and considering appropriate modifications to accommodate for the attraction of sport tourism events in our community. However, as outlined in the strategy there are four significant issues that need to be addressed when determining the costs and benefits of including these requirements. The 2005 Leisure Facilities Master Plan recommended that any new facility construction or expansion over $250,000 require the development of a business case. Staff suggests that the issues and other considerations in the Sport Tourism Strategy be addressed as the business cases for future sport facilities are developed. FINANCIAL IMPLICATIONS: The consultants forwarded operating budgets for each organizational model, in section twelve of the strategy. Given resource constraints, staff is looking and believes there may be opportunity to accommodate the implementation of Option 2 by reprioritizing work within the existing budget. However, there may be instances where some recommendations within this strategy will have to be delayed and/or, if additional resources are required, brought back to Council separately for consideration and approval. COMMUNICATIONS: The results of the Sport Tourism Strategy will be shared in a public meeting, in the near future, with those who participated in the public consultations, during the information collection stage. The City of Waterloo will also be considering the Sport Tourism Strategy, and staff report with similar recommendations, at their Council meeting on September 8, 2008. 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F.J. Galloway Associates Inc. theTourism Company Cameron Hawkins & Associates Inc. Advisory Services to the Hospitality & Tourism Industries June 27, 2008 Mr. Mark Hildebrand Interim Director, Community Programs & Services City of Kitchener City Hall 200 King Street West Kitchener, ON N2G Mr. Steven Scherrer Manager of Marketing & Business Development Recreation & Leisure Service City of Waterloo City Hall 100 Regina Street S Waterloo, ON N2J 4A8 Gentlemen: In accordance with the Terms of Reference for our engagement, we are pleased to enclose our report entitled Sport Tourism Strategy for the Cities of Kitchener and Waterloo. We appreciate the opportunity to be of continuing service to the both Kitchener and Waterloo, and look forward to discussing this report with you at your convenience. Sincerely, .~ r {~ Cameron Hawkins Fred Galloway President President Cameron Hawkins & Associates Inc. F. J. Galloway Associates Inc. Executive Summary Table of Contents 1.0 Introduction ............................................................................................................................... 1 1.1 Purpose and Scope of Project ............................................................................................ .. 1 2.0 Overview of Sport tourism in Canada ..................................................................................... ..1 2.1 Sport tourism Defined ......................................................................................................... .. 1 2.2 Industry Size and Structure ................................................................................................. .. 2 2.3 Benefits of Sport Tourism ................................................................................................... .. 3 2.4 Event Acquisition ................................................................................................................ .. 5 3.0 Environmental Scan ............................................................................................................... .. 6 3.1 Kitchener-Waterloo Market Positioning .............................................................................. .. 6 3.2 History in Sport Tourism ..................................................................................................... .. 9 4.0 Organizational Capacity ......................................................................................................... 10 4.0 Sports Facility and Ancillary Infrastructure Capacity .............................................................. 12 4.1 Kitchener Memorial Auditorium Complex ........................................................................... 12 4.2 Centennial Stadium ............................................................................................................. 12 4.3 Waterloo Memorial Recreation Complex ............................................................................ 12 4.4 RIM Park ............................................................................................................................. 13 4.5 University Stadium .............................................................................................................. 13 4.6 Baseball .............................................................................................................................. 13 4.7 Soccer Fields ...................................................................................................................... 14 4.8 Aquatics .............................................................................................................................. 14 4.9 Gymnasia ............................................................................................................................ 14 4.10 Other Sports ...................................................................................................................... 15 4.11 Accommodation ................................................................................................................ 15 5.0 Stakeholder Consultation ....................................................................................................... 16 5.1 Community Groups ............................................................................................................. 16 Waterloo Sports field Users .................................................................................................... 16 Aquatics .................................................................................................................................. 18 Kitchener Rangers Hockey Team .......................................................................................... 19 Waterloo Minor Hockey Association ...................................................................................... 20 6.0 Sport Tourism Delivery Models .............................................................................................. 22 6.1 Case Studies ....................................................................................................................... 25 7.0 Sport tourism Best Practices .................................................................................................. 30 7.1 Attracting Event Organizers/Marketing the Venue ............................................................. 30 7.2 Community Capacity Building ............................................................................................. 30 7.3 Event Development ............................................................................................................. 32 7.6 Local Ambassadors ............................................................................................................ 34 8.0 Sports Facility Development Considerations .......................................................................... 35 8.1 Introduction ......................................................................................................................... 35 8.2 Market, Use and Investment Perspectives Involving Major Sport Facilities ....................... 36 8.3 Facility Investment and Development Alternatives ............................................................. 39 8.3.1 Arena orMulti-purpose Sports and Entertainment Venue with Over 10,000 Seats .... 39 8.3.2 Track and Field Stadium .............................................................................................. 42 8.3.3 Aquatic Facilities .......................................................................................................... 45 8.3.4 Soccer /Fields Complex .............................................................................................. 48 8.3.5 Baseball ........................................................................................................................ 52 8.4 Facility Development Strategies ......................................................................................... 52 8.5 South Kitchener District Park l Community Centre ............................................................. 55 9.0 Findings and Conclusions ...................................................................................................... 57 9.1 Strengths, Weaknesses, Opportunities &Threats .............................................................. 57 10.0 Strategic Framework ............................................................................................................ 59 10.1 Developing Community Capacity ...................................................................................... 59 10.2 Enhancing Event Impact ................................................................................................... 60 10.3 Attracting New, High Impact Events ................................................................................. 61 10.3.1 Establishing an Event Evaluation Framework ............................................................ 61 10.3.2 Identifying Prospective Events ................................................................................... 64 10.4 Exploring Opportunities for Event Creation ...................................................................... 70 10.5 Increasing Community Support for and Understanding of Sport Tourism ........................ 71 11.0 Governance and Leadership ................................................................................................ 72 11.1 Organization Mandate and Scope .................................................................................... 72 11.2 Organization Options ........................................................................................................ 72 11.4 Preserving Municipal Autonomy ....................................................................................... 80 11.4 Stakeholder Participation .................................................................................................. 80 11.5 Evolution of the Organization ............................................................................................ 81 11.5.1 Scope of Services ...................................................................................................... 81 11.5.2 Target Markets ........................................................................................................... 82 11.5.3 Organizational Autonomy ........................................................................................... 82 11.6 The Events Halifax Model ................................................................................................. 82 12.0 Resource Requirements ....................................................................................................... 83 12.1 Staff Requirements ........................................................................................................... 83 12.2 Financial Requirements .................................................................................................... 84 12.3 Significant Assumptions and Notes to the Financial Projections ...................................... 87 12.4 Resource Requirements-Summary ................................................................................ 88 13.0 Implementation Plan ............................................................................................................. 88 13.1 Timing ............................................................................................................................... 88 Summary ....................................................................................................................................... 91 Appendix 1 Consolidated Sports Facility Inventory ....................................................................... 93 Executive Summary The Twin Cities have a strong history in hosting major sports events. In addition to marquee events such as the Brier and Memorial Cup, Kitchener and Waterloo have hosted many provincial and national events for a wide range of sports, including annual tournaments for hockey, baseball, soccer, aquatics, figure skating, lacrosse and other sports. Both Kitchener and Waterloo have major venues that are not only suited for, but in varying degrees reply on sport tourism. Given their history, organizational capacity and infrastructure, both Cities have a vested interest in continuing to pursue sport tourism events. The Twin Cities have the potential to remain competitive with other Tier 2 municipalities across Canada, provided that they adopt the management and marketing strategies that are now considered "best practices" in the field of sport tourism. While some major events will be out of reach unless additional capacity is provided, there is considerable room to grow with existing facilities. In fact, the Consultants believe that the organizational and marketing recommendations contained herein are critical to the ongoing success of the Twin Cities' major sports venues. This is particularly true for the City of Kitchener, as both the Kitchener Memorial Auditorium and the Peter Hallman Ball Yards are focused, in part, on major sport tourism events. The City of Waterloo's major facilities -the Waterloo Memorial Recreation Complex and the Manulife Financial Sportsplex and Healthy Living Centre -are more actively programmed with community-based activities, but these venues are also engaged in sport tourism activity and provide the City of Waterloo a platform for growth in the sport tourism field. Sport is a major economic activity in Canada, accounting for $15.8 billion of household spending or 1.2% of Canada's gross domestic product. Canadians participate in many sports, but not surprisingly, ice hockey is in a class by itself as the most popular for participants, volunteers and spectators. Four other sports -soccer, baseball, basketball and volleyball -also enjoy strong popularity. While the majority of sports activity is local in nature, sports and travel have an important relationship. The economic value of sport travel has been estimated by the Canadian Tourism Commission at $1.3 billion, while the total economic benefit of sport travel (including locally incurred event staging costs) is estimated at almost $2 billion annually. For the purpose of this study we have defined sport tourism as: Visitors who have travelled more than 40 kilometres one way from home and/or stay overnight, whose primary reason to travel is to participate in an organized sports-related activity. The benefits of sport tourism are broadly based, but can be generally categorized into three areas - Health and well being; Social, and Economic. These benefits are generally aligned with municipal Kitchener-Waterloo Sport tourism Strategy i goals, objectives and strategies, allowing for the creation of a "benefits-based" framework for the evaluation of sport tourism initiatives. Market Capacity In terms of market size and access, Kitchener-Waterloo is connected to a significant population base and enjoys high capacity transportation infrastructure. Within a 1.5 hour drive of Kitchener-Waterloo is a total market population in excess of 5,000,000 people. For larger events, travel times of three to five hours provide access to other potential communities such as Windsor, Detroit, Buffalo, Barrie and beyond. Community capacity is a critical element in a sport tourism strategy. The stability and experience of local sports teams and their linkages to senior sport governing bodies are important factors in tournament hosting bids. The Twin Cities are well served in organizational capacity for three of the top five sports -ice hockey, baseball and soccer. Municipal staff also have considerable expertise in bid preparation and tournament operations. A number of organizations involved in sports such as aquatics and field hockey have the desire and the potential to become more prominent in the sport tourism field. The Kitchener-Waterloo area has a host of excellent recreation and sport facilities with proven capacity for sports events. Most notable amongst these facilities are the Kitchener Memorial Auditorium Complex, Waterloo Memorial Recreation Complex, Budd Park, RIM Park and the Peter Hallman Ball Yard, along with facilities provided by post-secondary education institutions. As good as these facilities are, they do not provide any particular competitive advantage, as cities such as Ottawa, London and Hamilton have larger arenas and stadia. Facility size precludes the pursuit of a number of national and international events that these and other municipalities such as Halifax and Winnipeg are able to pursue. However, it can be argued that a series of smaller events, and in particular recurring annual events, can bring more long-term economic benefit to a community than one major event every decade. Sport Facility Development Considerations When considering the development of new sport facilities, it is important to acknowledge that sport tourism activity, in and of itself, cannot justify the capital cost involved in facility development, nor can it generate the revenues required for sustained and viable operations. The development of new sport facilities must be justified primarily on an established need within the community. This need can be evidenced through the presence of a viable anchor tenant, by strong demand for commercial occupancy of multi-use facilities, or by the current and project community demand for recreational programs. Sport tourism activity may influence building design criteria and provide a periodic source of additional demand, but it cannot be the primary justification for new facility development. Kitchener-Waterloo Sport tourism Strategy The ability of the Cities of Kitchener and Waterloo to increase their current level of sport tourism activity is dependent on three key inputs: • Capacity utilization for existing facilities; • Community use versus sport tourism event use priority within existing or new facilities; • The capacity of existing and new sport facilities to meet event hosting requirements. From a capacity utilization perspective, most arenas and indoor aquatic facilities operated by the two cities are at 90% plus capacity utilization during peak periods (which are typically required to host sports tournaments). Therefore, to increase sport tourism activity in these facilities would require either an expansion of facility capacity and l or allocating a higher level of prime time for sport tourism activities. For sports fields and stadia, there is a range of possible unused capacity. Clearly, both University and Centennial Stadiums have unused capacity from June through October. Also, some baseball and soccer field capacity exists during the summer months when these programs may be less intense. However, many of the venues that are available have constraints such as limited seating or locker facilities, that limit the type of events that could be held. Accordingly, there are some opportunities available, primarily for local, recurring tournaments and for regional and provincial field and stadium-based events, with limited opportunity for larger-scale events due to facility constraints. The second input involves a city's policy for community use versus sport Tourism. Typically, communities utilize the pyramid approach to service delivery and facility allocation, based on the following hierarchy: • Broad-based community participation as the top priority, as such use reaches the most residents and ratepayers and realizes the greatest benefits from recreation participation; • Local competitive sports, hobby groups and developmental programs, as they respond to a considerable range of interests, especially at younger age levels, and support a significant number of participants in recreational activities; • High performance 1 highly competitive uses which often constitute less than 10% of any particular activity participant base and represent individuals who are likely attempting or are motivated to compete at the national, international or professional levels. This latter group becomes a greater consideration for municipalities when they decide to pursue more sport tourism initiatives, resulting in venue allocation decisions becoming more complex. Many of the sport tourism activities, whether one time or recurring events, can interrupt the schedules for regular community use activities. If the community is successful in securing several events in the Kitchener -Waterloo Sport tourism Strategy iii same year, concerns may be raised about the number and scale of disruptions and "bumping" that occurs. These discussions bring into focus the purpose and priority of municipal sports and recreation facilities and the municipality's role in the development of higher performance athletes. Some municipalities are now developing policies to address limitations on the number of sport tourism events per year and whether regular scheduled activities can be "bumped" within a certain framework. The third input to this question is whether a municipality has the facilities that meet event hosting requirements. For Kitchener and Waterloo, the current major sports facilities define the level of events that can be hosted. This report has identified the possible loss of national and international events as the hosting standards and seating capacity requirements for such events increase. Therefore, to generate increased sport tourism activity with the current facility inventory, priority must be given to recurring local, regional and provincial events designed to match current capacity, niche market events that require more modest seating and other facilities, and created events. Kitchener -Waterloo Sport tourism Strategy iv If new facilities are not developed, the primary question before the municipalities in terms of increasing the current level of sport tourism activity and high performance athlete training, will involve policy decisions related to facility use priorities and rescheduling of regular community users. For both cities, an increase in the number of recurring sport tourism events can be achieved by: • Encouraging existing organizations that operate these types of events, to increase the number of events that they currently undertake; or, • Identifying other community sporting groups that do not currently host such events, but have the interest and (some) organizational capacity. The cities can take a more direct leadership role in supporting new created events, including providing incubation funding for events in this growing market segment. As noted earlier, a number of marquee events that have been hosted in the Twin Cities now require larger venues. As event hosting requirements evolve for major sport governing bodies and rights holders, the Twin Cities may see further erosion in their competitive market position. Probably the most significant consideration in developing a strategy for this sport tourism market segment is the future of the Kitchener Memorial Auditorium Complex. Redevelopment of Centennial Stadium is dependent on the future direction for the Kitchener Memorial Auditorium, and therefore, these two initiatives are closely aligned in terms of the alternatives available. To attract more prominent national and international events, the municipalities will have to provide additional sport venues, most notably: • A 10, 000 plus seat sports and entertainment complex • A track and field facility of contemporary standards. • An indoor fifty-metre aquatic facility • A soccer complex with multiple fields, field house and stadium seating. Of these major new projects, soccer facilities have the greatest feasibility, as community demand will increase substantially over the next ten to fifteen years. A comprehensive discussion of facility requirements, development, use and management options is provided in the body of this report. Strategic Framework The Sport Tourism Strategy is built upon five platforms: 1. Developing community capacity -programs and services to assist event organizers in delivering well-managed and sustainable events. 2. Enhancing event impact -strategies to help selected events increase economic and community development impacts. Kitchener-Waterloo Sport tourism Strategy v 3. Attracting new, high impact events -initiatives to attract new events that support the Twin Cities' goals and objectives. 4. Exploring opportunities for created events 5. Increasing community support for and understanding of sport Tourism Our recommendations are summarized below: Developing Community Capacity 1. Core Program -assemble and disseminate an Event Planning Tool Kit for current and prospective Event Organizers. 2. Core Program -develop and implement a series of ongoing workshops and roundtables for event organizers. 3. Optional Program -provide web-based assistance in volunteer recruitment and/or event registration. 4. Optional Program -provide event management assistance through direct involvement of sport tourism staff on the Organizing Committee for selected events. 5. Optional Program -provide event financial assistance through a Sports Event Grant Program. Enhancing Event Impact 1. Core Program -working with local Destination Marketing Organizations and Event Organizers, develop and implement an "Attendance Builder" program for use by Event Organizing Committees. 2. Core Program -facilitate the development of accommodation packages by bringing together key stakeholders including event organizers, accommodation, restaurant and attractions operators. 3. Optional Program - underwrite a portion of the marketing costs to develop and/or promote such packages. Attracting New High Impact Events 1. Core Program -finalize the draft Event Evaluation Framework based on goals, objectives and strategies outlined in approved municipal and departmental strategic plans. 2. Core Program -develop and implement a marketing and communications strategy to promote the Twin Cities as a sport tourism destination. The primary vehicle for this strategy should be a dedicated sport tourism website. 3. Core Program - establish a prospect list of Sport Governing Bodies and the events they control at the provincial, regional, national and international level. Kitchener -Waterloo Sport tourism Strategy vi 4. Core Program -confirm the level of organizational support and capacity available from local sports organizations. 5. Core Program -establish the "top prospects list" of events that produce Health & well being, Community and Economic benefits most closely aligned with municipal goals; that can be hosted by facilities currently available within the communities; and that have strong support and organizational capacity from local sports groups and other stakeholders. 6. Core Program -establish and maintain effective working relationships with the Sport Governing Bodies identified as Top Prospects. 7. Core Program -prepare Business Case for targeted events, identifying funding and other commitments required from the municipalities and other stakeholders. 8. Core Program - establish a Bid Development fund to assist in Host City bid preparation for selected events. 9. Optional Program -establish an Event Development fund to provide financial assistance for staging selected high impact events. 10. Optional Program - -provide event management assistance through direct involvement of municipal staff on the Organizing Committee for selected events. Exploring Opportunities for Event Creation 1. Core Program -investigate niche market opportunities for new event types and to identify emerging marketing trends. 2. Core Program -identify local market support, participation levels, infrastructure and organizational capacity. 3. Core Program -prepare Business Case for new events determined to have market potential based on track record of comparable events and local capacity. 4. Optional Program -establish an Event Development fund to provide financial assistance to selected new events. Increasing Community Supportforand Understanding of Sporttourism 1. Core Program - develop a communications and advocacy strategy aimed at the community at large, and at the key stakeholder groups most directly affected by the proposed sport tourism strategy. 2. Core Program -develop the collateral material and the distribution strategy to reach the intended audiences. The communication strategy should take advantage of existing municipal communication channels where possible. Kitchener-Waterloo Sport tourism Strategy vii 3. Option Program -prepare Economic Impact reports on selected sports tournaments to reinforce the benefits of sport tourism to the community. Governance and Leadership From an organizational perspective, the Twin Cities are at a disadvantage compared to most of their provincial and national rivals, which have specialized sport tourism marketing organizations and destination marketing organizations. While sport tourism organizations take on many forms, they typically encompass most or all of the following functions: • Sport tourism sector development and capacity building • Bid planning, development and facilitation • Managing relationships with provincial and national sport governing bodies • Event creation and development • Marketing and promotion of community sport hosting • Sports event calendar coordination • Event hosting support • Coordination of local groups (in the sport, tourism, economic developmentlbusiness and municipal sectors) To undertake the core and optional programs outlined above, a sport tourism organization would require the following mandate and scope: • Promoting the municipality as a sports event destination (e.g. web site, facilities database, event planner kits) • Providing guidance to local groups on bid development and event organization • Providing promotional support for event • Facilitating volunteer recruitment • Providing a forum for stakeholder participation and input • Ongoing liaison with sports federations and event organizers • Identification of event bid opportunities • Preparation and submission of bid documents Kitchener -Waterloo Sport tourism Strategy viii • Event applicationlhosting administration (e.g. facility rental forms, grant applications, facility calendar and specifications) • Promoting a greater understanding of the role of sport tourism • Administering financial assistance programs The functions and activities required to undertake the core and optional programs outlined in the preceding section can be broadly categorized into three areas: 1. Organizational Capacity • Providing event planning tools (e.g. facilities database, event planner kits, event organizers workshops) • Event application and hosting administration (e.g. facility rental forms, grant applications, facility calendar and specifications) • Administration of financial assistance programs 2. Marketing and Communications • General promotion of the municipality as a sports event destination (e.g. web site, facilities database, event planner kits) • Providing a forum for stakeholder participation and input (e.g. tourism sector, community groups) • Promoting a greater understanding of the role of sport tourism 3. Event Acquisition and Event Support • Identification of event bid opportunities • Assisting local groups on bid development and event organization • Preparation and submission of bid documents • Facilitating volunteer recruitment • Providing promotional support for event (e.g. attendance builder programs, visitor guides, maps, pins, banners) • Ongoing liaison with sports federations and event organizers Organization Options Sport tourism organizations take on many forms, although the most common would be as an independent, not-for-profit corporation, or as a department within a municipally controlled or municipally funded parks and recreation, economic development or tourism agency. Kitchener -Waterloo Sport tourism Strategy ix The Consultants considered a number of organizational options for the Twin Cities sport tourism initiatives. The status quo -separate and autonomous strategies and organizations -can be considered one endpoint on a continuum of organizational options, while a single, fully integrated strategy executed by one organization can be considered the other end of the range. Along this continuum are a number of organizational options. On the following pages we have outlined the advantages and disadvantages of a range of organizational models. Option 1: Completely separate initiatives and organizations Option 2: Common organizational capacity, marketing and communications; separate event acquisition and event support Option 3: Fully integrated strategy executed by a joint working group of municipal staff Option 4: Fully integrated strategy executed by an arms length sport tourism commission Option 5: Fully integrated strategy executed by an arms length regional Destination Marketing Organization Within each model we have also outlined a range of options for funding and staffing. Option 1: Maintain completely separate organizations Description Each municipality would pursue sport tourism events through separate and autonomous initiatives, operated within Recreation and Leisure Services for the City of vvaterloo and Community Services for the City of Kitchener. Advantages Easiest and fastest to implement Resource allocation can be tailored to the objectives and strategies of each municipality Potential to cooperate on an ad hoc basis Disadvantages Duplication of efforts and costs Does not capitalize on Twin Cities strengths More difficult to coordinate joint bids Less able to attract qualified sport tourism personnel Staffing and Organizational Capacity initiatives can be undertaken by contract staff, consultants or new municipal employees Resource Marketing and Communications initiatives can be undertaken through existing Options corporate communications channels Event acquisition and operations initiatives can be undertaken by existing staff, new municipal employees or contract staff assigned to specific bids or events. Kitchener-Waterloo Sport tourism Strategy x Option 2: Integrated organizational capacity, marketing and communications initiatives. Separate event acquisition and event support initiatives Description Common organizational programs and initiatives -event organizers tool box, on-line facility inventory, sports organization data base. Common destination marketing (web site, calendar of events) and stakeholder communication programs. Event acquisition and event support would be undertaken independently by each municipality. Advantages Capitalizes on Twin Cities strengths Recognizes that municipal boundaries are not relevant to many stakeholders and sports governing bodies Less duplication of efforts and resources Resource allocation can be tailored to the objectives and strategies of each municipality Can evolve to a more integrated organizational model Responsibilities can be readily devolved to the municipalities or to another organization (e.g. regional DMO) Disadvantages Some duplication of efforts and costs More time required to establish joint service delivery strategy and agreements Twin City bid opportunities may not be fully exploited. Less able to attract qualified sport tourism personnel. Greater burden on existing municipal resources for supervision of new initiatives, and for ongoing event pursuit and bid preparation. Staffing and Resource Options Organizational Capacity initiatives can be undertaken by contract staff, consultants or new municipal employees Marketing and Communications initiatives can be undertaken through existing corporate communications channels Event acquisition and operations initiatives can be undertaken by existing staff, new municipal employees or contract staff assigned to specific bids or events. Kitchener-Waterloo Sport tourism Strategy Option 3: Full inte rated strate executed b 'oint municipal workin roup Description The municipalities would pursue sport tourism events through one working group that develops and implements initiatives that support sport tourism across the Twin Cities, for events that are focused on one or both municipalities. This entity would be attached to one of the existing municipal departments responsible for sports and recreation, and a joint working group would be established to provide leadership, funding and administrative support. Advantages Capitalizes on Twin Cities strengths Recognizes that municipal boundaries are not relevant to many stakeholders and sports governing bodies Less duplication of efforts and resources Responsibility (and resources) can be devolved at a later date to a third party organization (e.g. Sport tourism Commission or Regional DMO) Disadvantages More difficult and time consuming to establish and manage Resource allocation must be agreed on by both municipalities, which may have different objectives for sport tourism Devolution of responsibilities back to the municipalities may have adverse market consequences. Benefits and costs may not be fully aligned at all times Perception of bias if one municipality provides office space, administrative support and day to day supervision. Greater burden on existing municipal resources for supervision of new initiatives. Staffing and Organizational Capacity initiatives can be undertaken by contract staff, consultants or new municipal employees Resource Marketing and Communications initiatives can be undertaken through existing Options corporate communications channels Event acquisition and operations initiatives can be undertaken by existing staff assigned to new sport tourism position or new municipal employees. Event bid and event operations support can be supplemented through contract staff assigned to specific bids or events. Kitchener-Waterloo Sport tourism Strategy xii Option 4: Fully integrated sport tourism commission established as an arms length corporation Description The municipalities would pursue sport tourism events through one entity that develops and implements initiatives that support sport tourism across the Twin Cities, for events that are focused on one or both municipalities. This entity would be established as an arms length Corporation similar to the new Regional Destination Marketing Organization, with an appointed Board of Directors. The Corporation would be funded by the municipalities and through its own revenue generating activities. Advantages Capitalizes on Twin Cities strengths Recognizes that municipal boundaries are not relevant to many stakeholders and sports governing bodies Less duplication of efforts and resources Responsibility (and resources) can be devolved to a third party organization (e.g. Regional DMO) without adverse market consequences. Reduces perception of bias if organization is directed by and accountable to an appointed Board of Directors Better able to attract qualified sport tourism personnel Disadvantages Less control by the municipal funding partners Devolution of responsibilities back to the municipalities may have adverse market consequences. Cost to establish and manage corporate entity Time and costs associated with recruiting and maintaining Board of Directors More difficult and time consuming to establish Resource allocation must be agreed on by both municipalities, which may have different objectives for sport tourism Benefits and costs may not be fully aligned at all times Staffing and Organizational Capacity initiatives can be undertaken by contract staff, consultants or employees of the new organization Resource Marketing and Communications initiatives can be undertaken through or supported by Options existing corporate communications channels Municipalities can continue to provide housing, IT, legal, human resource, procurement, accounting and other administrative support on an in-kind basis. Kitchener -Waterloo Sport tourism Strategy xiii Option 5: Sport tourism responsibilities delegated to regional destination marketing organization Description The responsibility for sport tourism would be assigned to the newly-formed Regional Destination Marketing Organization (DMO). The DMO would be responsible for promoting the region as a sport tourism destination, and for identifying potential bid or event hosting opportunities. Municipalities would supplement bid development and event hosting support through existing departments. Advantages Economies of scale on web site, facility inventory, calendar of events, attendance builder programs, administration Organization model in place, with core funding secured from Region and local municipalities Established model (Tourism London, Tourism Hamilton) Capitalizes on Twin Cities strengths Recognizes that municipal boundaries are not relevant to many stakeholders and sports governing bodies Less duplication of efforts and resources Sport tourism activities could be spun off to a separate organization in the future without adverse market consequences. Disadvantages DMO organized on a regional basis with all municipalities and townships participating in the funding and governance Devolution of responsibilities back to the municipalities could have adverse market consequences Would have to re-visit the approved business plan and funding model if the organizational mandate was broadened. Organization has broad focus, making it more difficult to ensure sport tourism receives adequate attention No funding in current business plan for sport tourism May be more difficult to find qualified senior management if focus of organization becomes too broad. Benefits and costs may not be fully aligned at all times Staffing and Resource Options Organizational Capacity initiatives can be undertaken by contract staff, consultants or new DMO employees Marketing and Communications initiatives can be supported by existing municipal or DMO communications channels Municipalities can continue to provide housing, IT, legal, human resource, procurement, accounting and other administrative support on an in-kind basis. Event acquisition and operations initiatives can be undertaken by staff assigned to new sport tourism positions, and can be supplemented by other DMO employees or contract staff assigned to specific bids or events. Kitchener -Waterloo Sport tourism Strategy xiv Resource Requirements This sport tourism strategy has been developed to guide the Twin Cities over the next five to ten years, with the specific recommendations phased over the first three years. Our strategy contains both Core Programs that we believe are essential if the municipalities are to compete in the sport tourism market, as well as Optional Programs that would enhance the competitive position but are not considered essential in the short to medium term. Some of these optional programs include grants for event marketing and operations, which cannot be quantified as they are contingent on a successful event bid. Staff Requirements The organizational model chosen to implement the sport tourism strategy will have an obvious impact on staffing needs. The Organizational Capacity, Marketing and Communications initiatives outlined in this Strategy will require one full time manager and one part time administrative position to fully implement. The Event Acquisition and Event Support recommendations are scalable, allowing the municipalities to establish the appropriate level of resources to be attached to these initiatives. Financial Requirements The staffing budget required for the Organizational Capacity, Marketing and Communications initiatives has been estimated at $120,000 for recurring staff (one manager at $80,000 per annum, one half-time administrator at $15,000 per annum, plus burden at 30%). We believe that one full time management position will be required for Event Acquisition and Event Support initiatives. Both municipalities are currently providing staff resources and other financial support to the acquisition and management of sport tourism events. The budget figures provided herein do not take into consideration any savings or efficiencies that could result from the re-tasking of existing municipal staff and financial resources. In addition to staffing, start-up and ongoing costs, funds should be available for Bid Preparation, Event Development, Event Marketing and Event Management. The financial requirements to implement this sport tourism strategy under Options 1 through 4 are summarized in the following tables. As we do not believe that Option 5 is viable at this time, we have not attempted to forecast the financial resources required for this Option. The significant assumptions underlying these projections are summarized in the Notes immediately following the tables. Kitchener-Waterloo Sport tourism Strategy xv i 0 Q ~~ ~ N ~ ~ O ° O ° O O O +_ + ~ 't~ N ~ ~ ~ ~ ~ O O O O Ln ~ ~ !~ ~- •+ V ~ ~ ~~ L ~ . ~ _ ~~ *'' 0 ~ / ~ V ~ ~, C~ O ~ ~ O O O O O ~ N O N + ° ° O .. O .. 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We have assumed that these services will be provided on an in-kind basis and be covered under a services agreement by the municipalities. Note 1: Under all four Options we estimated that the staff required to implement the Organizational Capacity, Marketing and Communications recommendations will be the equivalent of one manager and one half-time administrative support position. As these initiatives are relatively fixed in scope, both municipalities would incur similar costs if these initiatives were pursued independently as in Option 1. In Options 2 - 4 this duplication would be eliminated. Note 2: Advisory Committee or Board expenses include the cost of meetings and presentations. Under Options 1 and 2 these costs would be duplicated to a large extent. Under Option 4, these costs would be higher as there are more frequent meetings, as well as audit and legal costs. Note 3: Operating and marketing grants for smaller sports events are typically in the range of $1,000 to $10,000 per event. Operating grants may be in the form of direct financial assistance, fee waivers or in-kind services. Marketing grants should be for events that have the potential to serve as a regional, provincial or national draw. Marketing grants typically range from $5,000 to $10,000. Assuming five operating grants of $5,000 each and three marketing grants of $7,500 each, a grant budget of approximately $50,000 would allow the municipalities to support up to eight tournaments annually. In Option 1 this has been allocated 60% to the City of Kitchener and 40% to the City of Waterloo. Note 4: Under all four Options we have assumed that the aggregate effort assigned to pursue new sports tournament opportunities for both municipalities (including events for each municipality on a stand alone basis and joint-city bids) will be the equivalent of one full time employee, staffed at a supervisory level with an equivalent annual salary of $50,000 plus burden. Under Options 1 and 2 we have arbitrarily allocated 60% of this cost to the City of Kitchener and the balance to the City of Waterloo, recognizing that the City of Kitchener will, in any given year, likely have more tournament hosting opportunities. Other Event Pursuit and Bid Preparation Costs are budgeted at $10,000 per year and include printing, research and similar costs. In Option 1 these costs have been allocated 60% to the City of Kitchener and 40% to the City of Waterloo. No provision has been made for the supervisory time provided by existing municipal staff under Option 1. Note 5: Under all options we have assumed that communications initiatives and support (e.g. website, brochures, production of manuals etc.) could be provided by one or both of the municipalities. To more accurately illustrate the cost of implementing the sport tourism strategy, we have assigned a dollar value to these services for each option. Kitchener -Waterloo Sport tourism Strategy xviii Summary and Conclusions In the long term, the Consultants believe the sport tourism strategy would be most effective if directed by a new, dedicated organization focused exclusively on sport tourism i.e. Option 4. The day-to-day operation of the organization would be assigned to dedicated staff, funded on a cost- sharing basis by the municipalities. Strategic direction and policy formation would be the responsibility of an appointed Advisory Board or Board of Directors, structured as follows: • One representative from each municipal council • The CAO or a designate from each municipality • Four representatives from local sports organizations • Two representatives from the educational sector, to include at least one representative from either Wilfred Laurier University or the University of Waterloo • Four representatives from the business community, to include at least one accommodation, one attraction and one media • One citizen representative from each municipality for a total of 16 members. In addition to the Board members, consideration should be given to having selected municipal employees, drawn from the parks and recreation, community services or enterprise departments, to provide technical support to the Board and staff. While this organizational model is, in our view, the most suitable in the medium to long term, a transitional or staged approach to the establishment of an arms length sport tourism organization should be adopted. In reaching this conclusion, consideration was given to the following: • The Twin Cities, like all municipalities in Ontario, face considerable budget pressures to deliver existing services and fund municipal infrastructure. A phased implementation plan reduces the immediate operational cost of implementing the strategy, and allows the municipalities to move forward on those initiatives that have the most immediate impact and highest return. • The City of Waterloo is currently conducting a Recreation and Leisure Service Policy Review, addressing Facility Allocation Policy, Pricing Policy, Community Liaison Policy, Community Cash Grant Policy and Paymentl Fee Assistance Policy. • The City of Waterloo has recently commenced work on a new Recreation and Leisure Services Master Plan. • The City of Kitchener and the City of Waterloo are both reviewing their Community I nvestment Strategy Kitchener-Waterloo Sport tourism Strategy xix Given the significant level of policy review underway, the Consultants believe it would be prudent to defer the creation of a new organization until the policy framework had been finalized. Therefore, we have established a transitional strategy which highlights those operational initiatives that, in our view, will have the most immediate impact and highest return. These elements of this sport tourism strategy can move forward immediately, are scaleable in terms of the resources that can be allocated, and can be implemented while major policy reviews are underway. Accordingly, we recommend the following organizational development sequence and implementation plan: Year One Organizational Model: Option Two -Integrated organizational capacity, marketing and communications initiatives. Separate event acquisition and event support initiatives • Establish agreement on municipal cost sharing and support • Retain or second the required staff • Develop communications strategy • Establish Sport Tourism Terms of Reference, Mandate and Advisory Committee, and recruit members • Develop event organizers "Tool Kit" • Develop attendance builder program for existing events • Complete events data base and establish Prospects List • Canvass local sports organizations to develop Top Prospects list • Develop guidelines for Event Development and Event Marketing grants • Develop packaging strategy with local attractions, hotels, retailers and events Year Two Organizational Model: Option Two -Integrated organizational capacity, marketing and communications initiatives. Separate event acquisition and event support initiatives • Implement Event Marketing and Operations grant program • Develop cooperative marketing programs and packages to enhance economic impact of selected events • Launch Sport tourism Web-site (basic tourism information, facility and grant applications etc.) • Active, ongoing solicitation of new events by both municipalities • Marketplace scan to identify opportunities for new Created Events • Review of organizational effectiveness Kitchener-Waterloo Sport tourism Strategy xx • Development of Business Case, Business Strategy and Implementation Framework for integrated strategy Year Three • Organizational Model: Option Three -Fully integrated strategy executed by Joint Municipal Working Group • Prepare business case for new Created Events • Web site enhancements (on-line best practices, event organizers handbook, templates) Year Four Organizational Model: Option Three -Fully integrated strategy executed by Joint Municipal Working Group • Review of organizational effectiveness • Development of Business Case, Business Strategy and Implementation Framework for integrated organization • Develop Sport tourism Commission Terms of Reference, Mandate and Board structure and recruit members • Prepare articles of incorporation and by-laws Year Five Organizational Model: Option Three -Fully integrated sport tourism commission established as an arms length corporation There will always be events that are out of reach, based on available facilities, ancillary infrastructure or community capacity. The development of new sports facilities may address this gap, but the justification for such facilities must come from community needs, not the opportunity to host a major event every ten to twenty years. By building on the considerable expertise already in place within the community and by targeting events on a "best fit" basis, a structured and pro active sport tourism strategy can be implemented immediately for a relatively modest budget. This investment will help the Twin Cities build on the strong event hosting experience obtained over the past thirty years. Kitchener -Waterloo Sport tourism Strategy xxi 1.0 Introduction 1.1 Purpose and Scope of Project The Cities of Kitchener and Waterloo ("the Twin Cities") commissioned Cameron Hawkins & Associates, FJ Galloway Associates and t"e Tourism Company ("the Consultants") to prepare a comprehensive market assessment of their current and potential role in, and the benefits from sport tourism. The scope of the study included public and agency consultation, identification of the benefits of alternative sport tourism strategies and the associated investment, and the development of a sport tourism strategy which substantiates the directions the Twin Cities should follow over multiple levels including regional, provincial, national and international events. 2.0 Overview of Sport tourism in Canada 2.1 Sport tourism Defined There is no formally accepted definition for sport tourism. The combination of some form of sporting activity with tourism is an obvious starting point. Therefore we must first agree on what is meant by the terms sports and tourism. In its August 2005 report on The Socio-Economic Benefits of Sports Participation in Canada, the Conference Board defined sport as: an activity that requires a degree of physical exertion and skill and that typically involves competition with others and a set of rules, or a physical activity undertaken to improve personal sporting performance (for example, training). Source: Conference Board of Canada -The Socio-economic Benefits of Sport Participation in Canada This definition excludes competitions using motorized vehicles and physical activities that involve neither competition nor the intention of improving personal sporting performance. The generally accepted definition of tourism is: all overnight trips, regardless of the distance travelled, and same day trips with a minimum one-way distance from a respondent's home of 40 kilometres, excluding trips taken as a member of an operating crew of a bus, plane, truck, ship etc., commuting to one's usual place of work or school, or moving to a new residence. Source: Statistics Canada Some organizations have suggested that sport tourism involves all tourists participating in a sport or physical recreational activity. By this definition, single tourists visiting the Twin Cities to golf at Grey Silo or canoe the Grand River would fall under the definition of sport tourism. The Canadian Sport Tourism Alliance defines sport tourism as "any activity in which people are attracted to a particular location as a sport event participant, an event spectator, or to attend sport attractions or business meetings." Kitchener -Waterloo Sport Tourism Strategy 1 For the purpose of this study we have defined sport tourism as Visitors who have travelled more than 40 kilometres one way from home and/or stay overnight, whose primary reason fo travel is fo participate in an organized sports-related activity. Participants come from three major categories: 1. Active participants-individuals who engage in sport for the purposes of competition with others, under a set of rules, or to improve their personal sporting performance; 2. Volunteers-individuals who volunteer their time and expertise in sport (for example, as a coach, a driver, an official or a fundraiser); and 3. Attendees-individuals who attend sporting games or events to observe. Other stakeholder groups and economic participants include vendors and suppliers. For the purpose of this study, we have included all those who would not otherwise have visited the region had it not been for a specific sports event. 2.2 Industry Size and Structure Sport is a major economic activity in Canada. In 2004, $15.8 billion of household spending was on sports, representing 1.2% of Canada's gross domestic product. While the proportion of adults who actively participated in sports dropped from 45% in 1992 to 31 % per cent in 2004, sports spending rose significantly during the same period, from 0.9 % of GDP to 1.2%. Canadians participate in many sports, but the majority of time, effort and resources are concentrated on a handful of the most popular. Not surprisingly, ice hockey is in a class by itself as the most popular sport in all categories, leading all other sports in Active participants, Volunteers and Attendees. Four other sports attract significant participation in Sport % of Adult Population # of Adult Participants Ice hockey 6.6% 1,646,000 Golf 6.5% 1,621, 000 Baseball 4.7% 1,172,000 Skiing 4.0% 998,000 Soccer 3.8% 948, 000 Volleyball 3.1 % 773,000 Basketball 2.8% 698, 000 Tennis 2.6% 649,000 Curling 2.6% 649,000 Bowling 2.4% 599,000 all three categories -soccer, baseball, basketball and volleyball. The top ten sports, in terms of Active participants are shown in the adjacent table. While the majority of time, effort and expenditures on sports are local in nature, sports and travel have an important relationship. In 1998 the Mills Report, one of the first comprehensive studies on competitive sports in Canada, estimated that more than 200,000 sports events take place each year in Canada. That same year, the Canadian Travel Survey estimated that 37% of the 74 million domestic trips taken by Canadians were for sports-related reasons. The economic value of sports travel has been estimated by the Canadian Tourism Commission at $1.3 billion, while the total economic benefit of sports travel (including locally incurred event staging costs) is estimated at almost $2 billion annually. Kitchener -Waterloo Sport Tourism Strategy 2 The market for sports events may be segregated by: • the nature of the event activity - single or multi sport • the geographic focus of the event -local, provincial, regional, national or international • invitational events -events that are open to a limited number of participants that meet specific event criteria (performance standards, league standing, win-loss record) • created events - an increasingly common form of event, often created specifically to generate tourist activity during shoulder or off-peak seasons, or to enhance the impact and appeal of an anchor event • professional sports teams -while most of the attendance for professional sports is from the local or day-trip market, they do generate economic activity from visiting teams and from post-season play • competitive versus non-competitive events (e.g. coaching clinics) Sport Canada, a branch of the federal Department of Canadian Heritage and the federal agency responsible for sports policy, has developed the following hierarchy of sports events: • Level 1 -Major international events, single or multi-sport. Examples - Commonwealth Games, Olympic Games • Level 2 -Small international events. Examples -Bell Capital Cup • Level 3 -National and Provincial events. Examples -Vanier Cup, Memorial Cup, Grey Cup • Level 4 - Intra-provincial and open events. Examples - OFFSA Track & Field Championships • Level 5 -Local Event - KW Granite Club Springfest Bonspiel 2.3 Benefits of Sport Tourism The benefits of sport tourism are broadly based, but can be generally categorized into three areas - Health and well being; Social, and Economic. Health and well being benefits include physical fitness and health; fun, recreation and relaxation; sense of achievement; family or household activity, and skills development. Social benefits include family and community cohesion; interpersonal connections; community safety; promotion of culture, heritage and diversity, and youth development. Kitchener -Waterloo Sport Tourism Strategy 3 Economic benefits include direct and indirect expenditures by participants, volunteers and attendees; enhanced municipal profile, and the creation of event legacies. To the extent that the benefits in these three categories are aligned with municipal goals, objectives and strategies, we can create a "benefits-based" framework for the evaluation of sport tourism initiatives. For example, within the Guiding Principles for the City of Waterloo Recreation & Leisure Services Department we find three directly relevant Department Outcomes: Health and Wellness -residents experiencing improved levels of health and wellness through active living and participation in a wide range of enjoyable recreation and leisure pursuits. Communifyldentity-residents taking pride in their community, past and present, through an appreciation of parks, recreation and cultural resources. Economic Development -residents benefiting from increased business activity, the retention of existing business, and enhanced investment associated with the desirability of high quality recreation and leisure services. Economic impact typically receives the most attention when discussing the positive benefits of sport tourism, and there is no doubt that the economic impact of major sports events can be considerable: • The Bell Capital Cup, Ottawa's annual minor hockey tournament, attracts more than 400 teams from seven countries. Visitor spending for the 2005 event was estimated at $4.4 million. When the multiplier effect of direct expenditures is taken into consideration, this event is estimated to generate $11.1 million in economic activity, including $2.5 million in wages and $2.2 million in taxes to the federal, provincial and municipal governments. • Last year's IIHF World Junior Championship, held in British Columbia, generated almost $23 million in direct expenditures by the organizing committee and visitors, and an estimated $41 million in total economic activity. These benefits included $8.1 million in wages and $4.6 million in tax revenues to all levels of government. • The 2004 Nokia Brier, held in Saskatoon, set a record for attendance with over 238,000 spectators. The event's hospitality venue (the Brier Patch) hosted an estimated 140,000 fans and generated over $1 million in food and beverage sales over the nine day event. Total visitor expenditures were estimated at $6.5 million, and operational expenditures (including media) were a further $6.4 million. Including indirect expenditures, the total economic impact for this event was estimated at $23.2 million, including $3.7 million in wages and $3.1 million in taxes. Kitchener -Waterloo Sport Tourism Strategy 4 • The 2002 IAAF World Youth Athletics Championship, held in Sherbrooke Quebec, featured 1,000 track and field athletes participating in a range of track and field events over a period of five days. The average expenditure per trip for participants was $208 while the average expenditure per trip for overnight spectators (average length of stay 4.3 days) was $361. The combined spending (operations, capital and visitors) was estimated at $18.9 million with an estimated economic impact for the City of Sherbrooke of $29.6 million. The majority of the direct economic benefits flow either to private business, or to the senior levels of government. Municipalities can receive additional facility rental income, although in many instances sports tournaments displace other user groups and the incremental revenue is modest. In the case of larger events, municipalities must often underwrite certain event staging costs in order to secure the event, resulting in a net cost to the host municipality. Unlike the provincial and federal governments, which benefit directly and immediately from incremental taxes on sales and wages, municipal tax revenues are more likely to flow over the long term, in the form of business attraction and retention. The non-financial benefits -health & wellness, quality of lifelquality of place, community profile -provide the justification for a pro active sport tourism strategy at the municipal level. The development of a benefits-based framework for event evaluation will be discussed further in Section 10.3. 2.4 Event Acquisition The process for bidding on and acquiring events varies widely and is generally established and administered by the Sport Governing Body responsible for administering sports policy at the relevant level (i.e. provincial, national or international). In the most complex instances, such as the International Olympics Committee, cities must first be selected as Candidate Cities, either by the international governing body or by the respective national governing body. Candidate cities must then follow a very elaborate and structured bid process, demonstrating their ability to meet or exceed highly refined venue and host city specifications covering everything from sports facilities to security. At the opposite extreme, some of the smaller sport governing bodies have no formal bid specification and are constantly looking for tournament hosts. It is not uncommon for such events to return to the same venue year after year because no other event hosting applications have been received. While each sport governing body has its own unique requirements, the following generally describes the process for bidding on and acquiring sports tournaments: 1. Sport governing body identifies tournament hosting opportunities. Most major tournaments are committed at least two years in advance. If a formal geographic rotation policy is in Kitchener -Waterloo Sport Tourism Strategy 5 effect, the next open opportunity for a specific region may be eight to ten years in the future. 2. Sport governing body provides technical specifications and other Organizing Committee responsibilities. This typically covers sports facility requirements (including specifications for playing surface and spectator capacity), accommodation and other ancillary facilities, financial obligations. 3. Bid Team prepares Bid Application documents. This may be a single or multi-stage process. In a multi-stage process, the Bid Team must typically demonstrate that it can meet the technical and financial requirements of the Event Organizing Committee. This would then be followed by a more comprehensive bid document describing organizational and community resources, hosting experience, financial pro formas etc. 4. Site inspections may be undertaken by the Sport Governing Body to verify the information set out in the bid documents. 5. Venue selection -typically made by the full board or a standing committee of the Sport Governing Body. There are a number of cities that can host marquee events such as the Memorial Cup or the Tournament of Hearts, and for such events, the gap between hosting opportunities can be measured in decades, not years. In the past twenty years, for example, only Quebec City has hosted the Memorial Cup more than once, and only the Twin Cities have hosted the Tournament of Hearts more than once (although indifferent facilities). Events requiring arenas with 8,000 or more seats have a much shorter list of candidate cities. During the same twenty year time frame the Brier has returned to Saskatoon three times, and to Edmonton, Hamilton, Regina, Ottawa, Calgary and Halifax twice. 3.0 Environmental Scan 3.1 Kitchener-Waterloo Market Positioning As noted earlier, sport tourism participants include Active participants, Volunteers and Spectators. Market size and access are critical in determining the potential for the Host City to sell individual tickets or ticket packages, to generate corporate sponsorship dollars, and to secure volunteers which many larger events require in significant numbers. The Waterloo Region has a population of approximately 450,000 in the six municipalities that constitute the Region. Approximately 65% or 300,000 live in Kitchener or Waterloo. Approximately another 100,000 live in the City of Cambridge directly to the south of Kitchener and the remaining population lives in the three adjoining Townships. Kitchener -Waterloo Sport Tourism Strategy 6 Based on the Region's Growth Strategy Report and population projections from the Planning Department, the Region's population over the next twenty years is anticipated to exceed 550,000. As a result, Kitchener-Waterloo, from a sport tourism perspective, has an immediate market population of approximately 500,000 people. Tourists are defined as those that travel at least 40 kilometres or stay overnight. In the immediate market area of the Twin Cities, this would include cities such as Hamilton with in excess of 400,000 residents; Brantford with nearly 100,000 residents and numerous smaller communities such as Woodstock with 40,000 residents. Therefore, within 40 to 80 kilometres of the Twin Cities the market would include approximately 700,000 individuals. Moving beyond this immediate tourist market, the population grows significantly as it encompasses the Greater Toronto Area, London and the Niagara Peninsula. Within an 80 to 150 kilometre drive from Kitchener-Waterloo lie the Regions of York, Durham, Halton, Mississauga and Niagara, the Cities of Toronto and London and many smaller communities. This market is estimated at approximately 4,000,000 people. Therefore, within a 1.5 hour drive of Kitchener-Waterloo is a total market population in excess of 5,000,000 people. For larger events, travel times of three to five hours provide access to other potential communities such as Windsor, Detroit, Buffalo, Barrie and beyond. In terms of market size, Kitchener-Waterloo is connected to a significant population base, both in the immediate area and within a more extended market trading area. Access to Kitchener-Waterloo from outside the Region is an important consideration for both Active participants and Attendees. The following are the key transportation considerations: • Highway 401 is a direct route from Toronto through to Windsor and Canada's busiest controlled access highway. It is currently being upgraded in terms of capacity and traffic flows through Cambridge, Kitchener, Woodstock and London. • Highways 7 and 8 from Highway 401 travel directly into Kitchener with an interchange at the Kitchener Memorial Auditorium Complex, continuing into Waterloo as a four lane divided highway. This roadway is currently being upgraded to six lanes from Highway 401 to the Conestoga Expressway. • Highway 7 connects Guelph to Kitchener, and provides an alternate route to Highway 401 via the Hanlon Expressway. Both of these routes are being improved to four lane divided highways over the next decade. • Highway 6 connects the Niagara Peninsula, the Region of Halton, Highway 403 and the Queen Elizabeth Way to Highway 401. This highway is currently undergoing significant improvements, particularly in the area of Highway 403. Kitchener -Waterloo Sport Tourism Strategy 7 • Via Rail travels on a corridor route connecting Sarnia, London, Kitchener and Toronto with several stops daily in Kitchener. • The Waterloo-Wellington Airport has been upgraded over the last number of years and offers limited scheduled service. It has facilities and capacities to service general aviation jet aircraft and charter flights. • There are numerous bus and alternate transportation services to bring Active participants and spectators from Pearson International Airport in Toronto to the Kitchener-Waterloo area. • An intercity bus terminal, operated by Greyhound Bus Lines, also provides multiple avenues of access directly into Downtown Kitchener. The Kitchener-Waterloo market population and transportation infrastructure are very supportive of successful sport tourism initiatives. Kitchener -Waterloo Sport Tourism Strategy 8 3.2 History in Sport Tourism For more than 50 years, Kitchener, and in more recent years Event Name (Event Year Description Hosted Waterloo, have been actively involved in hosting a wide array of sport CHL Memorial Cup 2008 tourism events. With the opening of the Kitchener Memorial Auditorium in the mid-1950s, the development of the Westmount Golf ISC World Softball Championships 2007 & 2006 Club, the 1967 opening of Centennial Stadium and the more recent Canadian Mixed Curling 2006 development of Budd Park, the Peter Hallman Ball Yard, the Championship Waterloo Memorial Recreation Complex and the RIM Park Complex, Four Nations Cup - 2006 International Women's Ice a strong facilities base now exists to support sport tourism. As well, Hockey the ongoing development of key sport and athletic facilities at the Canadian Wheelchair 2006 Basketball National University of Waterloo and Wilfred Laurier University has created Championships additional capacity to host events. Jack Donahue 2006 International Classic - As a result of these resources, the Twin Cities have a strong history Invitational Women's Basketball in hosting major sports events. Some of the significant tournaments World Junior Figure 2005 held in the Twin Cities during the past decade are shown in the Skating Championship adjacent table. President's Cup Canadian 2005 Lacrosse Championship - Beyond these national and international sport tourism events, Pan American Cup Indoor 2005 Kitchener and Waterloo have hosted many provincial and regional Field Hockey events for a wide range of sports, including numerous annual meets Jiu Jitsu World 2004 and tournaments for hockey, baseball, soccer, aquatics, figure Championship skating, lacrosse and other sports. Examples of these locally- Canadian JR Men's 2003 Fastball Championships promoted events include the K-W Oktoberfest Atom International Scott's Tournament of 2003 Hockey Tournament, the Waterloo Memorial Tournament, and the Hearts- Canadian Women's Curling Championship Kitchener International Soccer Tournament. CIS Men's Hockey 2002 Kitchener and Waterloo also have a track record of successful Championship collaboration for event bids and event hosting. Joint municipal bids CIAO Men's Hockey 2001 Championship are becoming increasingly common for larger sports events, but very ISU Grand Prix Figure 2001 few cities enjoy the proximity and the established working relationship Skating Finals of Kitchener and Waterloo. Canadian National Junior 1998 Track & Field Finally, both cities have a strong track record in hosting training Championship camps for professional and elite amateur sports teams, including the IIHA Women's World Ice 1997 Hockey Championship Toronto Raptors, the National Women's Ice Hockey Team and others World Horseshoe Pitching 1997 . Championship Kitchener -Waterloo Sport Tourism Strategy 9 4.0 Organizational Capacity A successful sport tourism strategy depends on strong grassroots support. Sports governing bodies assess not only physical infrastructure, but also community capacity when selecting host cities. The stability, experience and capacity of local sports teams or leagues, along with their linkages to the senior sport governing bodies, are often critical factors in the success of tournament hosting bids. Organizational capacity includes: • Local support for ticket sales, advertising and sponsorships. This can be an intangible criteria based on factors such as the average attendance at local events, or it can be a more substantive commitment in the form of a financial guarantee. • Tournament hosting experience, access to technical experts and volunteer base. • Access to facilities - as local leagues are often major users of playing fields and arenas, securing facility time can be difficult without their active participation. In the Twin Cities local sports organizations are structured along municipal lines (e.g. Kitchener Minor Hockey, Waterloo Minor Hockey), on a Twin City basis (KW Skating Club, KW Track and Field) and on a regional basis (ROW Swim Club). Many of the minor sports organization such as baseball, soccer and hockey are aligned along municipal boundaries. This often results from tradition and rivalries, or it may be required by the senior governing body. The Kitchener and Waterloo Minor Hockey Associations are separate entities, for example, although the teams face each other in league play. The second type of local sport organizations are those serving the Twin Cities. Figure and precision skating clubs and many of the adult sport leagues operate on this basis. This occurs because no provincial or national associations exist, or governing bodies allow local leagues to expand beyond municipal boundaries. These groups wish to maximize the number of participants they can serve. An increasing number of local groups are organized in this manner and draw on the populations of both communities. The third form of local sport organization is the regional-based groups, such as the Region of Waterloo Swim Club or the Waterloo Region Cricket Club. These tend to be more specialized activities, either based on a more narrow market for Active participants, or requiring very specialized facilities. These groups tend to serve the entire Region of Waterloo, and may attract participants from an even wider geographical area. Kitchener -Waterloo Sport Tourism Strategy 10 As noted earlier, the most popular sports in terms of Active participants, Volunteers and Attendees are ice hockey, soccer, baseball, basketball and volleyball. The Twin Cities are well served in organizational capacity for three of these top five sports -ice hockey, baseball and soccer. Ice Hocke Organization Kitchener Minor Hockey Waterloo Minor Hockey Association Association Scope Rep and house league boys and Provides four levels of competitive play: girls hockey. Recreational Hockey (House League}, Minor Development (Carded Select}, A/AA Seeded and AAA. Tournament International Blueline AAA Waterloo Memorial Tournament - Hosting Tournament (2007 will be the 36t" features teams from across North History year for this event} America competing in four divisions - K-W OktoberfestAtom Peewee, Minor Bantam, Bantam and International (2007 will be the 33rd Minor Midget. AAIA teams. year for this event, co-sponsored Gold Puck Tournament features teams with Waterloo Minor Hockey) from across North America in four different divisions. AAA only. K-W Oktoberfest Atom International, co- sponsored with KMHA. 2007 "AAA" Midget Central Region Championship. Baseball Or anization KW Fastball Promotions Scope KW Fastball Promotions is comprised of Kitchener Minor Boys Softball, Kitchener Minor Girls Softball, Kinsmen Club of Kitchener-Waterloo, Countr Hills Optimists and Kitchener Fastball Lea ue) Tournament Hosting Histo Soccer Or anization Kitchener Soccer Club Sco e Rep and house lea ue bo sand irls soccer (indoors and outdoors) Tournament Hosting Histo Kitchener International Tournament. 2007 will be the 21 S year for this event. The event features a total of 20 age divisions for boys and girls and uses s orts fields throu hout the Twin Cities. In addition to established leagues and hosting capacity in these "top five" sports, the KW Water Polo Club also has established tournament hosting capacity, and stages annual competitions at the Waterloo Memorial Recreation Complex and Wilfred Laurier University Athletic Complex. A number of other sports groups have the potential to become more prominent in the sport tourism field, subject to addressing issues related to organization or facility capacity. Kitchener -Waterloo Sport Tourism Strategy 11 4.0 Sports Facility and Ancillary Infrastructure Capacity In assessing sport tourism potential one must consider the scale, quality and placement of sports facilities, as well as the ancillary infrastructure required to host large events. Ancillary infrastructure includes transient accommodation (hotels, motels, student residences), banquet and meeting facilities, public transportation and medical facilities. The Twin Cities offer a number of high-quality sports venues that have proven capacity to host provincial, national and international events. The major facilities are described in the following section, and a more complete inventory is provided in Appendix 1. 4.1 Kitchener Memorial Auditorium Complex The Kitchener Memorial Auditorium Complex is a 39-acre multi-use facility that includes the 6,000- seat Dom Cardillo Arena, the Kinsmen and Kiwanis Arenas, the 3,200 seat Centennial Stadium and 1,400 seat Jack Couch Baseball Park. This facility completed a major expansion and upgrade in 2001 including the provision of new foodservice concessions, luxury suites, licensed restaurant and group sales areas. The Kitchener Memorial Auditorium Complex is a full service facility and has for more than 50 years hosted hockey tournaments, curling bonspiels, horse shows, floor shows, concerts and other activities. The facility is home to the OHL Kitchener Rangers. The Kitchener Memorial Auditorium Complex is well recognized as a major sport tourism facility, and is the key indoorlice-based sport tourism facility in the area. In recent years it has been surpassed in terms of seating capacity by the 19,000 seat Copps Coliseum in Hamilton and the 9,100 seat John Labatt Centre in London. The Kitchener Memorial Auditorium Complex has played host to many of Canada's marquee sports events. However, many of these events now require larger venues, typically 10,000 seats or more. 4.2 Centennial Stadium Located at the Kitchener Memorial Auditorium Complex, this is a 3,200 seat outdoor facility built in 1967, with an eight-lane rubberized track and full field event capacity. The facility is now considerably aged, has few modern amenities and has had problems in recent years with the quality of the track surface. The 2005 Kitchener Leisure Facilities Master Plan identified a need for a major rehabilitation of Centennial Stadium or an alternate facility as this venue has limited capacity to host other than local and regional track and field meets, some soccer games and related activities. 4.3 Waterloo Memorial Recreation Complex This facility opened in 1993 and features the Clarica Arena with 3,400 seats and approximately 1,000 additional standing room capacity. It also houses the Swimplex, amulti-purpose aquatic Kitchener -Waterloo Sport Tourism Strategy 12 facility featuring a 30 metre pool, one metre and three metre springboards and five metre diving tower, and gallery seating for 300. It is the home of a number of local sports teams including the Waterloo Siskins (Junior B hockey), Wilfred Laurier Golden Hawks (OUA Hockey), KW Water Polo, KW Diving Club and KW Braves (Jr. A Lacrosse). The Waterloo Memorial Recreation Complex has hosted a number of major sports tournaments, including the Scott's Tournament of Hearts, the Canadian Ringette Championship and CIAU University Cup (Men's Hockey National Championships). 4.4 RIM Park RIM Park is the City of Waterloo's premier 500-acre park and recreation facility. With 18 outdoor sports fields, Manulife Financial Sportsplex and Healthy Living Centre, trails, parkland, and Grey Silo golf course, RIM Park is one of the largest comprehensive sports and recreational venues in Canada. The Manulife Financial Sportsplex and Healthy Living Centre opened in 2001 and includes a four pad ice complex, indoor soccer and gymnasium. The Sportsplex is home to the Kitchener Waterloo Skating Club, Wildhawk Basketball and a number of City of Waterloo adult recreational leagues. While the Sportsplex offers some of the newest ice facilities in the area, seating capacity is relatively limited, from 250 to 500 persons per pad. From a sport tourism perspective the facility is best suited to local and regional events, or for practice or preliminary rounds of larger events using the Kitchener Memorial Auditorium Complex or Waterloo Memorial Recreation Complex for playoffs and finals. 4.5 University Stadium University Stadium supports the University of Waterloo and Wilfred Laurier University football, soccer and lacrosse teams as well as other community-based leagues. The stadium has a seating capacity for 5,500 spectators, and a lit turf field. The stadium also has an outdoor track with six lanes that can host larger regional events. Its primary focus is on university sport programs and events. 4.6 Baseball The City of Kitchener maintains 14 ball diamonds to A-1 standard (clay surface, irrigated field, backstop, team benches, fenced outfield and sports field turf maintenance program). The Peter Hallman Ball Yard in Kitchener is the premiere baseball facility in the Twin Cities area, with three diamonds (two lit), spectator seating for 1,000 and the capacity to handle fastball and slo-pitch. It has hosted the 2002, 2006 and 2007 ISC Fastball World Tournament and the ICS II Tournament of Champions. A hardball venue, Jack Couch Park is located at the Kitchener Memorial Auditorium Complex. This is a single field hardball facility with approximately 1,400 bench seats. It is home to Kitchener -Waterloo Sport Tourism Strategy 13 the Kitchener Panthers and Kitchener Dodgers senior and junior ball teams plus minor baseball at the Midget level. The facility is lit and has support facilities (press box, concession stand, bullpen, batting cages) to support smaller tournaments. Both Waterloo and Kitchener have other fastball, slo-pitch and hardball fields that can be used for provincial, regional and local tournaments and related activities. The facilities vary in quality and capacity, and our consolidated sports facility inventory (Appendix 1) includes only those facilities maintained to A-1 standards. 4.7 Soccer Fields In addition to the 12 multi-use sports fields at RIM Park, soccer pitches or multi-use sports fields are available in Kitchener (four at Budd Park, five at Meinzinger Park, three at Resurrection, two at St. Mary's, one at Woodside and the infield at Centennial Stadium) and Waterloo (five at Bechtel Park). We have included only those facilities classed as A-1 Quality Fields. Budd Park also offers an indoor soccer facility. Not all of these venues have the necessary ancillary event facilities such as change rooms, grandstands and concessions. There is potential to host local, regional and provincial championships. However, beyond that scale the facilities are limited in capacity, especially when competing with large soccer venues being developed in the Greater Toronto Area and other locations. 4.8 Aquatics As noted earlier, the Swimplex at the Waterloo Memorial Recreation Complex houses a 30 metre pool. The University of Waterloo also has a 25 metre pool, while Wilfred Laurier has a 50 metre, six lane pool. The City of Kitchener operates four indoor pools, all twenty-five metres with no diving tower or higher board facilities. The hosting of major aquatic events is constrained by facility capacity. The only 50 metre pool has six lanes (most major events require eight) while the remaining pools are 25 or 30 metres. Note: Subsequent to finalizing this report, Wilfred Laurier University announced it would close its 50 metre pool for an indefinite period, commencing August 31, 2008. The closure of this venue does not change any of the findings or recommendations contained in this report. 4.9 Gymnasia In addition to the facilities at RIM Park, the Twin Cities offer a host of double and triple gymnasia in secondary schools, as well as major gymnasium facilities at the two universities and Conestoga College. The universities have hosted CIAU tournaments for volleyball, basketball, gymnastics and other activities. School board facilities have been used for local, regional and provincial events, but have limited utility for national events. Kitchener -Waterloo Sport Tourism Strategy 14 4.10 Other Sports The area does have some field hockey, cricket and related specialty fields. However, they tend not to be at a quality level that would support more than local or regional events. 4.11 Accommodation After sports facility infrastructure, accommodation is typically the most important consideration for a Host City. The Twin Cities offer a range of accommodation, including fullservice hotels, limited service motels, bed and breakfasts and student residences. The ability to house a significant number of Active participants (including family members and chaperones) in a single property is often a determining factor in venue selection. Properties offering in excess of 150 guestrooms are shown in the adjacent table. Pro ert # Rooms Delta Kitchener 201 Holiday Inn 184 Kitchener-Waterloo Hotel & Conference Centre Radisson Hotel - 172 Kitchener Waterloo Inn & 155 Conference Centre Smaller properties in the Twin Cities provide an additional 500 guestrooms. Other commercial accommodation in Waterloo Region, most notably in Cambridge, can provide significant additional capacity. Post-secondary institutions can be an important source of housing for sports tournaments, and the Twin Cities are well-served in this regard. Conestoga College, University of Waterloo and Wilfred Laurier University all offer seasonal accommodation, typically available from May through August. In total, almost 1,900 rooms are available in this category. Banquet and meeting facilities are also important for staging sports tournaments. Some events require large hospitality venues within the sports facility, while others will use banquet and meeting facilities within the headquarters hotels. From a sport tourism perspective, the facilities shown in the following table are noteworthy. Venue Meeting Rooms > 2,000 s . ft. Largest Room (sq. ft. Bin emans 7 20,000 Delta Kitchener 3 4,800 Holida Inn Kitchener Waterloo 2 4,800 Kitchener Memorial Auditorium 2 3,940 Waterloo Inn & Conference Centre 5 8,396 RIM Park 1 10,000 Waterloo Memorial Recreation Com lex 1 7,200 Kitchener -Waterloo Sport Tourism Strategy 15 5.0 Stakeholder Consultation 5.1 Community Groups Waferloo Sporfs field Users Five representatives of the Waterloo Minor Soccer Association, Waterloo Sunrise Cricket Club and the Waterloo Minor Fastball League participated in this focus group. Waterloo Minor Soccer Association • Waterloo Minor Soccer Association has been operating for thirty-four years. • Tournaments are a significant activity in terms of dollar generation in order to keep participant fees low. • Would like to bid for the Ontario Cup, but have been turned down repeatedly, as there is not the quality or the quantity of soccer pitches available to qualify for hosting. • Would also like to undertake an indoor soccer tournament, however, all times are booked. • Believes the municipal government needs to take a stronger coordinating role in accessing facilities for tournaments and developing the necessary infrastructure for these types of activities. • Too many of the soccer fields are not of sufficient quality in terms of playing surface. The three high quality fields available at Bechtel Park may be converted to cemetery use in the future. • Mississauga and Oakville have developed soccer complexes with artificial turf. They believe they are recovering their costs in three to five years. • The soccer program starts in the second week of May and then converts to football in the fall, which puts tremendous stress on the fields. • The Association has undertaken a soccer field study, but needs community support to move forward. Waterloo Sunrise Cricket Club • A regional organization that plays within the South Ontario Cricket League which covers the area Windsor to Kitchener-Waterloo. • The provincial body, the Ontario Cricket Association, has a series of annual championships. As well, national championships are also held annually. Kitchener -Waterloo Sport Tourism Strategy 16 • Currently the local organization hosts one tournament, but would like to host two regional tournaments and bid to host provincial and national tournaments. • The primary issue for this group is the lack offields and supporting amenities. • The Club would like to establish a children's program, but there are no fields available. • They believe there will be significant growth in cricket with the growing immigrant population in the Waterloo Region. • A clubhouse and field amenities are key requirements to attract tournaments and broader-based play, as well as higher quality playing surfaces that hopefully could eventually be artificial field turf. Waterloo Minor Boy's Softball • Currently hosts an annual championship with eight to twelve teams. Would like to host a provincial tournament • The Association has been travelling to open tournaments as far away as Kingston and Owen Sound for many years. • The City needs to provide greater facility support relative to field access and overall organization. • Currently only have one acceptable fastball field at Hillside Park. Kitchener has more appropriate facilities with the Peter Hallman Ball Yard for national and international fastball tournaments. General Comments • Strong belief that the municipal governments needs to be more engaged in facilitating tournaments and meets at all levels. • Access to facilities, particularly with supporting amenities, is critical to support tournaments beyond a regional level. • Tournaments are important fundraising initiatives for the local organizations. • Tournaments also diversify the overall sports program and create greater interest in participation. • All the groups would like to host provincial and national championships if the resources and facilities were available. • All the organizations would like to offer both house league and competitive level tournament opportunities. Kitchener -Waterloo Sport Tourism Strategy 17 Aquatics Three representatives of the Region of Waterloo Aquatic Club and the local Water Polo and the Diving Clubs participated in this focus group. Diving Club • Currently host a Tier 2 provincial level meet which they can host every three years. • Have participated in the Ontario Winter Games every eight years or so. Region of Waterloo Aquatic Club • Hosts six invitational meets from one day to three days in length. • Have undertaken some provincial tryout meets. Cannot be involved in any tournaments above a regional level due to facility constraints. Water Polo • Hosts two annual tournaments in the fall. • The provincial meet is available to be hosted in February or March if local interest exists. General • All three groups would like to move beyond regional meets and be engaged in hosting provincial, national and even international meets. • The main constraint is the lack of facilities capable of hosting major aquatic events. An eight-lane fifty-metre pool is a basic requirement once you move beyond the provincial meet level. • Kitchener has no pool capacity to facilitate aquatic meets of any type except possibly smaller regional events. Waterloo does have some access to the Wilfred Laurier fifty- metre pool. • The Region of Waterloo Aquatic Club often sends members to train in London or Etobicoke where there are fifty-metre pools available. • The primary constraint is an adequate facility, followed by reasonable access for training and hosting of events. • A general sense that the municipalities are focused on public use, maximizing revenue and related perspectives, which can reduce the opportunities for aquatic sports groups to host tournaments and develop skills that would energize tournament bids. Kitchener -Waterloo Sport Tourism Strategy 18 • All three groups anticipate continuing growth in membership and participation in aquatics activities. • The Wilfred Laurier University pool has limited access as student needs come first. The pool is also used by high school swim clubs and for recreational swimming from 4:00 p.m. to 10:00 p.m. daily. • The ideal facility configuration would be two pools, one for recreational use and one a competitive tank for lane swimming, lessons and related activities, primarily focused on swim meets and training. • The two Cities have come together over the years to host various events. "Why could they not come together to build a single fifty-metre pool plus diving well like London, Etobicoke and other centres, so that a population of over 350,000 people has this quality of facility?" • A general sense that Kitchener has a strong community development focus in supporting sports groups organizationally. Waterloo tends to not be as engaged with local sports groups. • Some expectation that the new Waterloo YMCA will relieve some of the pressure on the Waterloo Memorial Recreation Complex, which may open up some training opportunities. Kitchener Rangers Hockey Team An interview was held with the President of the Kitchener Rangers Hockey Club, which plays in the Ontario Junior A Hockey League. Since their inception the Kitchener Rangers have played at the Kitchener Memorial Auditorium in the Dom Cardillo Arena. This is also the primary venue for their practices, although they use other venues if the Dom Cardillo Arena is occupied. The following were some of the key points provided: • The Club would like to move eventually to an arena that has 10,000 seats. The basis for this is as follows: o Larger arenas have been developed in London, Ottawa and other locations which creates a more competitive environment; o The Club has been essentially sold out for season tickets for the last four years with athree-year wait list. Many people stop waiting and give up. Kitchener -Waterloo Sport Tourism Strategy 19 • The Club has developed a proposal fora $1.4 million, 437 seat addition to the venue. The Rangers and City of Kitchener are reviewing financing options for this project, which has a projected payback of less than ten years. A discussion on a possible location for any new arena facility was undertaken with the following input: • The current location lacks access to retail, restaurants or other amenities that have been a significant part of the economic development surge around the John Labatt Centre in London and other centres, and which provide an enhanced spectator experience and economic impact. A downtown location should be considered. • The current venue is ideally situated for transportation infrastructure and there is significant parking at the facility. • The current mix of spectators is 5,000 to 5,500 season ticket holders with 1,500 tickets for groups. • The past renovations to the Auditorium have had a five to six-year payback, as the corporate rent for boxes and increased game attendance have helped to pay for the addition. • In terms of major sport tourism events, the only one identified was the Memorial Cup, which could be hosted once every fifteen years. • The City has maintained the Kitchener Memorial Auditorium Complex at a very high level and it is an excellent facility. Waterloo Minor Hockey Association The following information was provided by a representative of the Waterloo Minor Hockey Association. • The following tournaments are run by the Waterloo Minor Hockey Association: Kitchener-Waterloo Oktoberfest Atom International Tournament in October each year (co-hosted by KMHA); Waterloo Memorial Tournament held in November each year involving Peewee, Minor Bantam, Bantam and Minor Midgets at the AA/A levels; Golden Puck Tournament held in December each year at the Minor Bantam, Bantam, Minor Midget and Midget levels for AAA teams; Waterloo Minor Hockey Association Fun Festival held in March each year for house league teams involving Novice and Atom. • They believe that if more ice was available, more minor hockey tournaments would be hosted, but ice capacity is the issue. Kitchener -Waterloo Sport Tourism Strategy 20 • Tournaments after end of regular season play are difficult, as many children are looking for alternate experiences such as soccer, baseball, golf or just to have a break. Therefore, the primary tournament season is from early September to the end of April. • Are considering a bid for the AAA Midget National Telus Cup Championship. Field Hockey The following information was provided by representatives of the Kitchener-Waterloo Olympic Hockey (KWOH) and the Waterloo Women's Field Hockey Club, which provide a range of indoor and outdoor programs. • KWOH hosted the Pan-American Indoor Hockey Championships at RIM Park in 2005. This was the Qualifier for the Americas for the Indoor Hockey World Cup in Austria in 2007. • Both organizations would like to increase the number of events hosted, certainly would target provincial tournaments andlor championships and ultimately national championships. KWOH has also targeted the Junior World Cup Qualifier in April 2011. Hosting this event would require a new sports field, and they are currently investigating funding options. • Field capacity is the major issue for higher level events such as national championships. KWOH is prepared to participate in funding new capacity. • KWOH is working with Field Hockey Ontario to provide training and tournament capacity, using University Stadium. Baseball The following information was provided by representatives of Kitchener Fastball Promotions and Kitchener Fastball League. • Organization hosts fastball tournaments, one of which is the International Softball Congress (ISC) World Fastball Tournament. Hosted the event in 2002 and 2006. Were asked to fill in for 2007 as the selected host community was forced to withdraw. • Will continue to host provincial, national and international events, including periodic bids for ISC World Championships. • Believes region has the best Fastball facilities in the province, in the top three nationwide. Sponsorship and full-time (paid) executive staff would be the biggest barriers to promoting more events. Kitchener -Waterloo Sport Tourism Strategy 21 6.0 Sport Tourism Delivery Models A growing number of municipalities have incorporated sport tourism into their overall tourism or economic development strategies. The Canadian Sport Tourism Alliance counts amongst its members 47 municipalities, 43 Destination Marketing Organizations, and four sports commissions, while the US based National Association of Sports Commissions includes in its 400 members 97 municipal, regional or state sports commissions and an additional 184 municipal or regional Destination Marketing Organizations. In order to assess benchmarks and best practices for sport tourism in Canada, case studies were completed through a combination of secondary research and interviews with key stakeholders. A growing number of jurisdictions have combined sport tourism with other cultural events tourism, so the following case studies include examples of both. Sport tourism brings together and leverages the resources and energy from three sectors in a community: • Sports organizations and groups both in the community, the province and nationally • Tourism/hospitality and broader economic development sectors • Municipal departments involved in sport and recreation Working together on coordinated sport tourism strategies enables communities to recognize and maximize the following types of benefits: • Attracting visitors in times when capacity exists in the tourism infrastructure • Creating new economic activity and impacts • Attracting media attention and Increasing community profile • Helping to improve and develop community faci I ities • Contributing to community health, social cohesion in the community, skills development and community pride NAµENT TAlEantona ,~I~~TN . ~~~ 4 ~~, ~ ~~ 'till ' '~°~ _.'~' ~~ Kitchener -Waterloo Sport Tourism Strategy 22 Six cities are presented as case studies including: 1. Brantford - `Tournament Capital of Ontario' was officially recognized on June 4, 1998 by the Provincial Legislature, through a private members bill (www.brantford.caltco) 2. Kamloops - `Tournament Capital of Canada' was launched in 2001 by the Mayor and Council (www.city.kamloops.bc.caltournamentcapital) 3. Saskatoon -guided by `Saskatoon Sport Tourism' anon-profit partnership organization managed by Tourism Saskatoon (www.tourismsaskatoon.com) 4. Thunder Bay -Operated for the City of Thunder Bay by the Sports Bid Administrative Advisory Committee (www.city.thunder-bay.on.ca/events) 5. Hamilton -sport tourism is a key priority for Tourism Hamilton (www.tourismhamilton.com) 6. Edmonton - `Edmonton Events International' is administered by Edmonton Tourism (www. ed montoneventsi nternational. com) There are many different organizational models being applied in the sport tourism sector across Canada, but there are some consistencies and key success factors. Cities with established and long-term success at pursuing and hosting sport tourism share the following approaches: • At least one full time staff position dedicated to sport tourism, typically under the local Destination Marketing Organization or Economic Development agency, and with strong partnerships across tourism, sport and the municipality. • Diverse cross sectoral membership in governance structures (i.e. Board of Directors or Advisory Committees) • Follow a well defined sport tourism strategy • Separate and distinct collateral and activities for events organizers • URL/Web site with content, design and key words optimized for sport tourism • Maps with locations of relevant venues • Hosting of familiarization tours • Support of local networking and capacity building • Support of development of local ambassadors to identify leads • Provide some type of financial support to attract events • Active nurturing of local and provincial sports organizations and federations • Active participation in Canadian Sport Tourism Alliance, including use of member- onlydatabase, attendance at annual conference, etc. Kitchener -Waterloo Sport Tourism Strategy 23 Mission statements for sport tourism organizations typically cover the following elements: • Attract visitors through sport • Guide attraction, retention and creation of sport tourism activiti • Sport tourism advocacy • Sport development Sport tourism organizations typically get involved in some or all of the following activities: • Sport tourism sector development and capacity building • Bid planning, development and facilitation • Managing relationships with provincial and national sports bod • Event creation and development • Marketing and promotion of community sport hosting capacity • Sports event calendar coordination • Event hosting support • Coordination of local groups in the sport, tourism, economic • developmentlbusinesssnd municipal sectors The Mission of the Calgary Sport Tourism Authority is to increase the success and competitiveness of bidding to host sport events. The mission of the Courtland Region Sports Commission is to promote Cortland County for sports related business, events, competition and education. CRSC's goal is to create a positive economic impact through sporting and recreational events within the Cortland community. The mission of the Lehigh Valley Sports Commission is to attract sports events to the Lehigh Valley through effective marketing, bid coordination and hosting activities. The sports commission will develop a fundraising mechanism for bid fees, and foster relationships with national governing bodies, sponsors and local media. Our mission includes building a volunteer base to support amateur sports events throughout the Lehigh Valley. The Tournament Capital of Ontario (TCO) is a community-based organization that provides excellence in tournament hosting services and assists sport organizations to promote and recognize Brantford as a Sport Tourism destination. Kitchener -Waterloo Sport Tourism Strategy 24 Typical event support and management functions for sport tourism organizations include some or all of the following: • Event calendar coordination • Maintain facility database • Facility and site selection • Accommodation coordination • Event bid support -financial and technical • Access to volunteers • Event planning tools • Networking facilitation -annual conference, seminars, workshops • Marketing and promotion - FAMs • Access to tools for monitoring and evaluation (i.e. the CSTA STEAM model) • Event equipment • Media assistance 6.1 Case Studies Case studies were selected to reflect a mix of size of community and scope of organization. These municipalities are recognized for their successful track record in pursuing sport tourism. Data on population and number of hotel rooms is from the current database for the Canadian Sport Tourism Alliance. 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We also reviewed a number of programs that were developed for a broader range of sports, cultural and heritage events. While not all of these are administered by sport tourism agencies, we have included these programs in our review of best practices as we believe they should be considered in the long-term development of the Kitchener-Waterloo sport tourism strategy. 7.1 Attracting Event OrganizerslMarketing the Venue Cities that have made a strategic decision to be `event friendly' make a clear statement of their commitment to sport tourism through organizational structure and departmentldivision name as well as through investment in dedicated staff and other resources. For example: The Rochester Events Network is closely aligned with the Commissioner's Office, Parks, Recreation and Human Services. The City of Brantford has made a strategic decision to position the city as the Tournament Capital of Ontario. Its mission statement states: "The Tournament Capital of Ontario (TCO) Committee promotes excellence in sport tourism and tournament services. The TCO strives to market Brantford as a year round tournament destination where 1St class events are hosted and visitors coming to our community experience our warm and friendly hospitality." A dedicated web site provides event organizers with a range of contacts and services. Events Thunder Bay provides a first point of contact with the City through a Special Event Developer and a dedicated web page. In addition, Events Thunder Bay provides equipment, an event planning guide, and event development grants (see Section 7.3 for additional details}. Hamilton has a Special Events Advisory Team (SEAT} that provides event organizers with `one stop shopping' with facilitated access to the appropriate City staff and department from the application stage through to the day of the event. 7.2 Community Capacity Building Many municipalities invest in community capacity building for sport tourism events through a variety of training, networking and professional development activities. Local networks are often the conduit to bring organizers together for networking, sharing of information and speakers. Some specific examples follow. Kitchener -Waterloo Sport Tourism Strategy 30 Handbooks and planning guidelines/event management fools Cities typically have event planning guides and manuals that provide event organizers with policies, procedures and `how to' best practices. It is important to provide easily accessible resource material in a variety of media including posting on the Internet. Saskatoon's Tournament Planners Manual integrates the City's policies and procedures for events with resource information, applications and sample tournament templates. Events Thunder Bay provides on-line access to an Event Planning Guide that relies heavily on the format in David Wilkinson's manual on event management "The Event Management and Marketing Institute Manual". Thunder Bay's guide deals more with the development and running of an event, but still addresses how to meet city regulations. Local and regional workshops and seminars The City of Toronto brings together organizers of events with similar characteristics for networking and professional development. It recently initiated a `running events' organizers group to share expertise and raise the quality of events. In 2003, Tourism Brantford hosted four workshops with topics such as: • Filling Out Funding Applications • Staging Great Events • Fundraising in Our Community • Volunteers -Where to Get Them and How to Keep Them. Events Thunder Bay hosts workshops on similar topics. The Thunder Bay Special Events Developer provides consultation with both existing events (improving marketing and sponsorship, for example) and with new events (how to get started) providing another avenue for building and expanding community capacity to deliver and manage events. Tourism BC and 2010 Legacies Now offer three-hour workshops for participants to understand how the tourism and sport industries can work together Networking Events Events Thunder Bay stages Sport Network Evenings to provide event organizers with the opportunity to network, and to discuss a variety of shared issues and opportunities. This approach is transferable to other sectors of event planning and management. Saskatoon Sport Tourism hosts an annual sport tourism conference in partnership with the Saskatoon Sports Council. Tourism BC and 2010 Legacies Now have set up the BC Sport Tourism Network to facilitate interaction and sharing of knowledge through quarterly meetings and an online tool called BC Sport Tourism Network Community of Practice. They also run a BC Sport Tourism Events Marketplace Kitchener -Waterloo Sport Tourism Strategy 31 providing abusiness-to-business meeting opportunity once a year for community tourism industry representatives and Provincial Sport Organizations. Tools and Kifs Sport Kelowna, a partnership between Tourism Kelowna, the City of Kelowna and Pacific Sport Group (a Canadian Sport Centre) provides event organizers with access to an Event Hosting Toolkit, Participant Welcome Kits (slide show, video, city pins, coupon books, parking guidelines etc) as well as an Event Kit providing tools and equipment to enable a sport organization to host an event in an affordable manner. The kit includes everything from portable tents to fax machines, generators andtwo-way radios. 7.3 Event Development Event development at a local municipal level has a number of components and approaches including: • Supporting and growing existing events; • Researching and actively soliciting new events; • Supporting development and introduction of new events; and • Direct delivery of selected events. Most municipalities take a balanced approach, utilizing a mix of the above tactics and incorporating some or all of the following support strategies: • Direct financial support to existing events; • One time support for development of new events; and • Multi-year support for development of new events. A more detailed examination of such strategies follows. Toronto commits both consulting support and financial assistance to nurture new events. The financial support includes an "incubator" program that reduces the amount of support over three years. Thunder Bay hosts over 215 events annually with an estimated economic impact of over $10 million per year. As noted in its Event Hosting Strategy the City of Thunder Bay strikes a balance between supporting existing events while also investing in future growth. This strategy has resulted in a shift from direct delivery to event development. The Event Development Grant, administered by the Special Events Developer, provides one-time seed funding for bidding on and hosting championships, first time tournaments and festivals. Kitchener -Waterloo Sport Tourism Strategy 32 Administered by the Community Recreation Division and a Review Committee, the maximum allowable grant is $5,000 per event. With an annual budget allocation of $20,000, typical support has been in the $500 to $3,000 range in recent years in order to support as many applications as possible. Eligibility criteria include: • Event is regional, provincial, national or international in scope. • Event will attract spectators and participants from out of town. • Special one-time event or inaugural festivallevent. • Applicant organization is based locally. • Applicant is non-profit organization. Hamilfon has two categories of support -cash and in-kind services. The budget allocation for in- kind services reflects support provided from departmental budgets and the cash support is a separate line item approved by Council. Kelowna offers a sports event development grant as seed money to assist local community sports organizations bidding, hosting, creating, marketing or administering new sports-based events. The emphasis of the grant is on events that occur outside the main tourism season, that are held mid- week orthat are regional, national or international in stature. Kamloops administers a Tournament Capital Funding Program for amateur sports organizations offering grants from $200 for a regional tournament to $1,500 for an Invitational Tournament. Kitchener -Waterloo Sport Tourism Strategy 33 7.6 Local Ambassadors Local residents who are active leaders in their business, sport or cultural endeavours provide a continual network of leads for events. Ambassador programs nurture, support and celebrate these residents, and are typically led by the local Destination Marketing Organization. Program Name & Location Program Description Ambassador Developed in 1983 by World Trade & Convention Centre; now a program Club - administered by Destination Halifax Halifax, NS Membership categories include: Associate Ambassadors -individuals who have or are about to initiate a bid that they can or have influenced Ambassador -have successfully influenced and won the right to host in Halifax Past Ambassador -event has been successfully staged On-line application and nomination forms Provides members with regular e-newsletter Hosts annual Ambassador Awards dinner to recognize efforts in securing conferences, meetings and events for Halifax. Venue Saint Event marketing partnership between City of Saint John, Tourism Saint John -Saint John and private sector partners John, NB Provides one stop shopping Be a Vancouver More than 400 hosts have participated since its inception in 1996. Host- It is estimated that 80% of international conferences that take place in Vancouver, BC Vancouver are secured through a local host Tourism Vancouver provides support at all stages of the bidding and planning processes. Leaders Circle - Established 2005 to inspire local industry and association leaders in the Toronto, ON promotion and bidding process to host their meetings and congresses in Toronto Provides complete support services Kitchener -Waterloo Sport Tourism Strategy 34 8.0 Sports Facility Development Considerations 8.1 Introduction A sport tourism strategy must address the level of resources to be committed to the pursuit of sport tourism events that exceed current facility capacity and infrastructure. Large multi-sport events almost always require the development of new venues, and large single sport events such as the FIFA U-20 World Cup may require new, expanded or upgraded sports venues. In this section of our report we will address tournaments, meets and events such as the World Junior Hockey Championship; national and international curling, aquatic and track and field events; provincial or national soccer and cricket tournaments and related events that do not fit due to facility and other infrastructure gaps. The Cities may have the other key capacities to compete in this segment (e.g. event hosting experience, accommodation, food services, volunteers), but do no have the sport venues required. In assessing this market segment's requirements, the facilities available and input received from stakeholders and other sources, a series of facility gaps were identified. These include: • An arena or multi-purpose sports and entertainment facility of between 10,000 and 15, 000 seats. • A track and field stadium of contemporary standards. • An indoor fifty-metre aquatic facility with attached or separate diving well with a full range of diving boards and towers. • A soccer complex with multiple fields, field house, seating and related amenities. • A dedicated cricket facility. When considering the development of new sport facilities, it is important to acknowledge that sport tourism activity, in and of itself, cannot justify the capital cost involved in facility development, nor can it generate the revenues required for sustained and viable operations. The development of new sport facilities must be justified primarily on an established need within the community. This need can be evidenced through the presence of a viable anchor tenant, by strong demand for commercial occupancy of multi-use facilities, or by the current and project community demand for recreational programs. Sport tourism activity may influence building design criteria and provide a periodic source of additional demand, but it cannot be the primary justification for new facility development. Kitchener -Waterloo Sport Tourism Strategy 35 8.2 Market, Use and Investment Perspectives Involving Major Sport Facilities In considering the development of any of these major new sports venues, four issues must be addressed. The first issue is the sustainability of local tournament hosting capacity as venue requirements evolve for the larger bid-based events. The Twin Cities have already experienced some loss of event hosting capacity in sports such as curling and ice hockey. Over time, the current facilities in Kitchener and Waterloo may see further erosion in the list of potential major tournaments as sport governing bodies demand larger and better facilities. And while the Twin Cities offer competitive venues in some sports, they are not competitive beyond the local level in aquatics, track and field, soccer or cricket. The second issue speaks to the purpose of sport facilities. Such venues have the potential to host new sport tourism events, and to support high performance athlete training as an ongoing use. For example, training in a fifty metre pool is much more effective than training in a twenty-five metre pool for athletes competing beyond the provincial level. Many of the community groups that participated in the focus groups for both the Master Plans and the Sport Tourism Strategy put significant emphasis on the training benefits and capacity as a primary rationale for such investments. To support this rationale, the cities must address the role of a municipality in supporting high performance training. Local sport organizations that aspire to support high performance athletes often believe the municipality should take a stronger leadership and investment role with respect to providing higher quality sport facilities, and as importantly, preferred access times to support high performance training opportunities. However, high performance training facilities have traditionally been provided at university venues, or have evolved as legacy components of Commonwealth, Pan American and Olympic Games investments by federal and provincial governments. High performance training support tends to be the responsibility of the federal and provincial governments, the Canadian Olympic Committee, corporate sponsors and others who provide funding and centres of excellence for these sports. Many municipalities feel that their priority should be on broad-based community use and on maximizing overall participation in order to enhance the physical health and well-being of its residents. Both Kitchener and Waterloo have a significant focus on community use of their recreation and sports facilities. Both Cities have upgraded some facilities and made significant investments in others to support certain levels of sport tourism and high performance activities. Facilities at the Kitchener Memorial Auditorium and RIM Park clearly provide venues for high performance training, including the fitness facilities that are increasingly important in high performance athlete training venues. In terms of aquatic facilities, high performance training in Kitchener and Waterloo is limited, as 25 metres pools are not seen as ideal for this type of training when swim meets and other aquatic Kitchener -Waterloo Sport Tourism Strategy 36 events require 50 metre pools and full diving facilities. Therefore, the only significant high end training facility available for aquatics would be at the Wilfred Laurier University which has limited opportunities for community use due to university priorities. From a stadium perspective, Centennial and University Stadiums provide some capacity for high performance training. However, their use is seasonally based, and in today's world, high performance athlete training requires ayear-round regimen. Therefore, a facility such as the Toronto Track and Field Centre at York University is critical for elite track and field athlete training and event needs. Many high performance athletes who participate in development programs travel long distances to train. Skaters from southwestern Ontario travel to the Mariposa School of Skating in Barrie which has been identified as a high performance training centre. Gymnasts also travel to the separate boys and girls gymnastic clubs in Burlington and to the dedicated facility in Woodstock. Kitchener and Waterloo residents sometimes travel to London or Etobicoke to train in a 50 metre pool. A third issue is the relationship between population size and the scale of sports facilities that are sustainable. Kitchener and Waterloo cannot each support a 10,000 seat arena or fifty metre 1 diving well aquatic complex. In fact, most of the facilities required to support an expanded sport tourism market can only be justified if they serve the larger population of the Twin Cities. Whether the two municipalities act alone, or in partnership with universities or others, agreement frameworks will need to be developed that support joint venture activities, as developing competing facilities is not a viable or reasonable strategy. The fourth issue involves community use priorities. The City of Kitchener Parks and Recreation Master Plan and similar policies for the City of Waterloo's recreation facilities focus on the importance of a broad mix of recreational and leisure opportunities that respond to the leisure interests and needs of its citizens. This has been the primary development model for most of the recreation facilities, although sport tourism has been a consideration in the ongoing development of the Kitchener Memorial Auditorium Complex, RIM Park, the Peter Hallman Ball Yard and the Waterloo Memorial Recreation Complex. These facilities focus primarily on community-based programs, annually recurring tournaments and meets, local special events and festivals, with sport tourism having a more limited role. More time within these facilities could be allocated to sport tourism initiatives. However, two key considerations would need to be addressed to support a new policy framework that placed additional emphasis on sport tourism: • Displacement of community use would need to be approved at a policy level and alternative spaces made available, or community programs would be diminished in terms of the hours available and/or quality of facilities. Kitchener -Waterloo Sport Tourism Strategy 37 • The larger sport facilities currently available through the Cities of Kitchener and Waterloo can support some additional sport tourism events and tournaments, primarily local, recurring events. However, none of these facilities has the current capacity to significantly grow the area's presence in the higher end sport tourism market, where the scale and quality of the facility becomes one of the dominant eligibility requirements. As operational and capital funding for municipal sports facilities is generally supported by property taxpayers, municipalities typically put more emphasis on community use as it involves the most number of beneficiaries. Striking a balance between community use, high performance athlete training and sport tourism activities is an important policy and investment decision for any municipality. The following issues must be addressed in formulating such a policy: • The number of athletes, on a sustained year-to-year basis, that would actually benefit from enhanced training facilities (or enhanced access to existing facilities); • The number of schedule disruptions that a regular community user group can absorb without its programs being inordinately affected. This is an important consideration, because many community users groups feel they need a regular and consistent scheduling regime. • Do community use revenues financially subsidize sport tourism events or high performance athlete development? This perspective has been along-standing area of contention in many minor hockey and figure skating organizations. The policy focus needs to articulate clearly what the priority is between community use, high performance athlete development and sport tourism events. Most communities position their leisure services to focus on community use in terms of the benefits associated with physical heath and well-being, socialization, skills development, youth behaviour and related outcomes. The competitive and sport tourism dimensions traditionally were add-ons to enhance programs, such as minor hockey, figure skating or aquatics. Today however, sport tourism has become more visible, focused and rigorous, and the facility demands for sport tourism and elite athlete training have intensified facility access challenges. As a policy example, the Woodstock and District Community Centre, a twin pad facility with nearly 3,000 seats, quickly incurred community use and event challenges after opening. The main arena provided a range of features to support sport tourism and other event activities including a media booth and wireless Internet capability. Within a fairly short period, the following questions emerged as to the policy for "bumping" regular community use: • What is the appropriate number of events that can disrupt regularly scheduled community use activities? Two to three per operating sport season was identified. Kitchener -Waterloo Sport Tourism Strategy 38 • How many days 1 months notice needs to be given for an event so regular users can adjust schedules? Six to twelve months was identified. • What is the maximum number of events a community sports organization can operate in a year in terms of hockey tournaments or figure skating shows? Two to three events per year was identified if the facility was at or close to capacity. • Is a community use that is "bumped" from its regular schedule able to capture offsetting times from either the municipal operator of the facility or the group hosting the sporting event, and is the offsetting time of the same quality as to time of day, day of week and facility quality? This latter point is often important in communities where there is a significant difference in facility quality. • When venue time is lost, will the group foregoing the time be financially compensated if they are operating based on contracted hours? • Can the economic impact and other benefits to the community from hosting a sport tourism or other event be determined, and do these benefits warrant a disruption of community user activities? These represent some of the criteria and questions that need to be addressed in such a policy. Municipalities are increasingly wrestling with this question as sport tourism becomes a more significant consideration within a municipality's overall economic development strategy. 8.3 Facility Investment and Development Alternatives 8.3.1 Arena orMulti-purpose Sports and Entertainment Venue with Over 10,000 Seats The only venue in Kitchener and Waterloo that currently has the indoor seating capacity for major ice-based or large indoor tournaments and events is the Kitchener Memorial Auditorium Complex's Dom Cardillo Bowl, with approximately 6,000 seats. The Kitchener Rangers Junior A Hockey Team is considering investments that could raise capacity to approximately 6,500 seats. Until the mid-1990s, this was considered a larger facility at the Tier 2 event level, with considerable competitive ability in terms of major curling events, World Junior Hockey Championships and a host of other sport tourism initiatives. However, since the mid-1990s, the Copps Coliseum, the John Labatt Centre, the Air Canada Centre, Ricoh Coliseum, Scotiabank Place and other facilities have been built that have 9,000 to 21,000 seats. In addition, many of the larger indoor events have now moved to minimum thresholds of 10,000 to 20,000 seats. As a result, the Kitchener Memorial Auditorium is now a Tier 3 event facility, behind Tier 2 venues such as the John Labatt Centre, Ottawa Civic Centre and the Ricoh Coliseum that are in the 10,000 seat range. Kitchener -Waterloo Sport Tourism Strategy 39 For Kitchener and Waterloo to consider (together or independently) an initiative to reposition their competitiveness for larger indoor tournaments and events, a facility in the range of 11,000 to 15,000 seats would be required. The Kitchener Rangers have identified a preference for 10,000 to 11,000 seats. Beyond that use, no other regular high volume users are identifiable. The key investment consideration for an enlarged Kitchener Memorial Auditorium Cardillo Bowl or a new facility would rest with: • Anew agreement with the Kitchener Rangers that reflected the additional seating capacity provided. • Aggressive pursuit of larger sport tourism events requiring a facility of this size. • Stronger pursuit of concert, entertainment, convention and trade show markets where large spectator or floor space venues are required. The potential for this latter market would need to be investigated separately from this report. However, the competitive environment is intense, with Copps Coliseum and the John Labatt Centre being within an hour of Kitchener and several venues in Toronto competing for many of the same events. The cost of such a facility would be significant. The John Labatt Centre, tendered in 2000, had a finished cost of approximately $45 million, reflecting the size of the facility and the special upgrades for the entertainment and concert components. The Greater Windsor Recreation and Sports Centre, a new four pad facility with a 6,500 seat main bowl for the Windsor Spitfires, has a current cost estimate of approximately $65 million ($10,000 per main bowl seat). New arenas built to NHL standards typically cost $10,000 to $15,000 per seat. Therefore, one can assume that $80 million to $90 million would be the minimum capital cost for an 10,000 to 15,000 seat facility depending on land availability 1 ownership and site development costs. Project costs could easily exceed $100 million for such a development. Considering the challenges that the Copps Coliseum has had due to it inability to attract an NHL franchise or a similar anchor tenant, a larger arena complex within Kitchener and 1 or Waterloo would be a significant investment if focused primarily on sport tourism rationales. Although it would create eligibility to host large, high profile, bid-oriented events, the frequency of such events is limited. Several other considerations need to be assessed relative to such an investment • The erosion of eligibility for sport tourism events will likely continue as demand for seating and amenities increase and the Auditorium continues to age. • The introduction of a newer and marginally larger facility in Windsor will create additional competition. Kitchener -Waterloo Sport Tourism Strategy 40 • New, but smaller facilities in Oshawa, Sault Ste. Marie and other locations could result in increased competition in the market niche that the Kitchener Auditorium currently operates within. If the Kitchener Memorial Auditorium Complex were in need of replacement due to its age, the rationale for a larger indoor arena would have a different decision model as only the incremental cost of additional seats would need to be considered, not the cost of an entire new facility. In terms of location, there are different views regarding the ideal site characteristics for such facilities. London has experienced considerable success with a downtown facility, which Guelph has also developed. Other arenas have been developed on the periphery of communities in order to acquire large tracks of land for surface parking. Four general options would appear to prevail in Kitchener and Waterloo for such a facility: • A downtown location as part of downtown redevelopment and renewal. • Expansion of the existing Cardillo Bowl. • Reuse of the Kitchener Memorial Auditorium Complex site, possibly resulting in the demolition of Centennial Stadium and Jack Couch Ball Field in order to support a larger facility and additional parking. • A green field operation where 50 to 100 acres of property would need to be acquired, depending on availability of public transit, surface parking needs and overall building scope. The major feasibility considerations associated with a new indoor facility are as follows: • What are the life expectancy and the building expansion potential of the current Cardillo Bowl at the Kitchener Memorial Auditorium Complex? • What seating capacity can be supported by the Kitchener Rangers as a high volume tenant? • What is the likely erosion of facility competitiveness as sport tourism events look for greater seating capacity and enhanced facility quality? • What will be the impact of new competitive facilities in Ontario that will operate in the current Auditorium market segment for sport tourism events, concerts and related activities? • Will using the current Auditorium site result in a need to replace the stadium and baseball complex? Kitchener -Waterloo Sport Tourism Strategy 41 • What is the potential of a larger venue for the concert, entertainment, convention and trade show markets? Beyond the needs of the Kitchener Rangers, the gain in sports tournament hosting capacity in an increasingly competitive market represents a significant challenge in rationalizing such a facility. Expanding the Cardillo Bowl, if possible, could enhance the feasibility of such an investment due to potentially lower capital costs. As a replacement for the Cardillo Bowl at the end of its life cycle, a new arena would have a different investment analysis. The City of Oshawa, for example, was faced with a $27 million cost to modernize the Oshawa Civic Centre. Rather than invest this money in the current building, it used these funds to support the development of the new $45 million General Motors Centre. 8.3.2 Track and Field Sfadium In both the Kitchener Leisure Facilities Master Plan and this Sport Tourism Strategy, track and field facilities were identified as a major gap by user groups. This occurs from several perspectives for the two facilities available: • University Stadium has only six lanes, versus the eight lanes required for larger events. The venue cannot be expanded without adversely affecting the primary use of the stadium, which is the football field for the two universities. • Centennial Stadium is forty years old and has evident limitations. The City is undertaking athree-year interim investment in resurfacing the eight lane track, after which a major rebuild of the track would be required. • Centennial Stadium's future could be shaped in part by whatever decisions are made around a new arena complex. • In Ontario, these two stadiums compete against the eight lane, all weather track at the 8,200 seat TD Waterhouse Canada Games Stadium in London, Ivor Wynn Stadium in Hamilton, and numerous university facilities in other centres. University and Centennial Stadiums, once the tatter's track is improved, can host local and regional meets, high school events and limited provincial meets. However, neither stadium is suitable for high performance training, provincial, national and international events. Another challenge for multi-use track and field stadiums is the use of the infield to support football, soccer, field hockey and other field activities. Many national and international track and field events require the field sports to be held within the seated portion of the stadium. This was a major design challenge for the TD Waterhouse Canada Games Stadium in London and remains a gap in terms of their ability to host larger events. A dedicated track and field stadium is the most direct way to Kitchener -Waterloo Sport Tourism Strategy 42 facilitate this requirement, although others have been able to accommodate multi-use through portable systems and flexible operating models To expand sport tourism opportunities in the track and field sector, an enhanced stadium complex would be needed. The preferred model, used in communities such as London, Guelph and Windsor, is to establish a partnership with a university in order to maximize the utilization of the track and field complex. The multiple uses, including football, soccer; and track and field for community use and university varsity, intramural and academic programs, intensify the facility utilization and improve the return on investment. However, if University Stadium is not expandable, this joint use option likely does not exist in Kitchener and Waterloo. Therefore, three options would prevail: • Redevelopment of Centennial Stadium at the Kitchener Memorial Auditorium Complex. • If Centennial Stadium is not available due to the need for a larger indoor arena on that site, potential redevelopment of a secondary school venue, such as Resurrection College or Huron Heights Secondary School could be considered if land is available. • Development of a green field stadium. The first option, Centennial Stadium, would appear to be the most practical as significant infrastructure is already available in terms of parking, track, infield and stadium. Also, Centennial Stadium has access advantages, being directly on the Conestoga Parkway. A renewal project would be required involving approximately $750,000 to support a permanent all weather track and other track and field resources, plus $2 million to $3 million to enhance the infield, stadium bleachers, amenities and lighting for a total project budget of $3 million to $4 million. Developing a facility at one of the two newest secondary schools in Kitchener could also be considered. However, both sites have limitations in terms of size and would likely have challenges in developing permanent seating and a field house. This model would require a partnership with one of the local School Boards. Resurrection College is central to both communities, being proximate to the border between Kitchener and Waterloo. Huron Heights in southern Kitchener is less accessible for out of town travelers and is further from Waterloo users Such a strategy would likely cost $5 million to $7 million as there is limited existing infrastructure such as parking, lighting, permanent bleachers and field house The third option would be a green field strategy. This would likely be on the periphery of the two communities on a site in excess of thirty acres. This would be the most costly strategy, as the complete stadium complex would need to be developed from scratch. In 2000, the tender for the TD Waterhouse Canada Stadium in London was $11.3 million on land already owned by the Kitchener -Waterloo Sport Tourism Strategy 43 University of Western Ontario. This provided 8,200 permanent seats, a field house, an eight lane all weather track and amulti-use infield with television quality lighting. Seating requirements could be reduced, with some cost savings. However, the other venue elements should be at the same or higher quality level. Based on this experience and allowing for the substantial increase in construction costs that has occurred since 2000, a $10 million to $12 million budget plus the purchase of land, would be the minimum investment required to provide an Athletics venue for enhanced sport tourism and community programs. If the primary purpose of expanding track and field capacity is to support broadly-based community needs and provide additional opportunities for larger regional, national and international events, the preferred solution would be redevelopment of Centennial Stadium due to access, the infrastructure already in place, the ability to manage major facilities on one site and the branded awareness of the facility. However, moving forward on Centennial Stadium is dependent on the expansion plans for the Kitchener Memorial Auditorium Complex. Under ideal circumstances, development of new sports facilities targeting major national and international sport tourism opportunities would also provide infrastructure for elite athlete training. The year-round use of such facilities for elite athlete training, in conjunction with year round use by other stakeholders, provides a stronger economic justification for the capital investment required. While an outdoor stadium as described above would provide capacity to pursue larger national and international events, it would not fully address the needs for elite athlete training and for year-round use by other stakeholders. To establish a centre for high-performance Athletics training, an indoor facility would be required. The Toronto Track and Field Centre, located on the campus of York University, offers the following indoor facilities: Five-lane 200-metre banked oval track Eight-lane 60-metre sprint/hurdle runway with photo-timers booth Three-lane 30-metre warm-up, sprint and hurdle runways Two long jump/triple jump Pole vaulting area (10-metre Two high jump areas runways (common pit) clearance) Shot-put throwing circle and Discus throwing area with Two meeting rooms cage curtain Training facility containing Observation gallery- Sports Injuries Clinic light, heavy, and Olympic washroom, locker rooms with free weights showers Kitchener -Waterloo Sport Tourism Strategy 44 8.3.3 Aquatic Facilities Aquatic facilities in Kitchener and Waterloo include: • Four community pools in the City of Kitchener, with a fifth pool proposed for the South District Community Centre. • A multi-pool complex at the Waterloo Memorial Recreation Complex. • One existing and one proposed YMCA fitness and instruction pools. • Atwenty-five-metre pool at the University of Waterloo. • A six-lane, fifty-metre pool at Wilfred Laurier University. Based on the 1991 Kitchener Parks and Recreation Master Plan, the 2005 Kitchener Leisure Facilities Master Plan and consultation for the Kitchener-Waterloo Sport Tourism Strategy, there continues to be support for an enhanced aquatic facility for both high performance training and aquatics events beyond a regional level. The minimum requirement for an enhanced aquatics complex would be: • Fifty-metre tank with at least one bulkhead. • Attached or separate diving well with one-metre and three-metre boards and five- metre and ten-metre towers. • Seating for up to 2,000. • Dry land training room, meeting rooms and related ancillary spaces. • Television lighting and electronic scoring and timing equipment. If international and some national events were of interest, swarm-up pool would be required for swimming and a second tank for diving. Kitchener and Waterloo, in their bid for the 2001 Canada Summer Games, proposed a $2.7 million expansion of the Laurier pool to eight lanes. In 1990, the City of London invested $10.5 million for an aquatic facility with afifty-metre, eight lane tank, five-metre long diving well eight lanes wide and a full diving tower, and approximately 200 seats. For the 2001 Canada Games, a $3 million renovation and expansion was required to increase the seating, enlarge the locker rooms and add a meeting room. To support enhanced sport tourism potential and high performance training, four options should be considered: • Expansion of the Wilfred Laurier University pool. • A partnership with the University of Waterloo for a new pool. Kitchener -Waterloo Sport Tourism Strategy 45 • Modification of the plans for the South Kitchener District Community Centre pool from a community pool to a competitive aquatics centre. • A green field facility. Expansion of the Wilfred Laurier pool has been proposed previously. The likely cost to expand the pool plus add a full diving facility would be in the $6 million to $7 million range. The benefits of such a strategy would be: • Lowest capital cost. • Ties in multiple user groups to intensify use of a larger pool complex, including the University's aquatics teams, intramural sports and academic programs. • Integrates with an existing pool operation. • Reasonably accessible from the Conestoga Parkway. • Located in a high density student area and on major bus routes. The key concerns with this option would be: • Proximity to the Waterloo Memorial Recreation Complex and the proposed Waterloo YMCA could result in cannibalizing existing programs. • Not centrally located within the two municipalities. • Need to ensure public access and affordability. This model has significant operating and capital cost benefits, provided that space constraints on the Laurier campus can be overcome. A comprehensive partnership agreement would need to be established to ensure community access to the facilities. A separate operating body or authority should be considered. The University of Waterloo has an existing indoor pool, although at 25 metres it does not meet the requirements for major events. The University has significant land at the Columbia Ice Fields where an aquatics facility could be developed. This would add to the cluster of sports facilities that currently exists, which are proximate to the student residences. Such a pool would be consistent with current operations at the University and would have intensified use from both University and community programming. The likely cost of an addition to the Columbia Icefields complex, given the existing infrastructure and assuming land was contributed by the University, would be in the order of $18 million to $22 million. Again, a partnership agreement that clearly demonstrated community affordability and accessibility would be needed. Kitchener -Waterloo Sport Tourism Strategy 46 In the 2005 City of Kitchener Leisure Facilities Master Plan, a fifth indoor community pool was identified for the South Kitchener District Community Centre. This would be located in the further southern reaches of the City in order to create another district recreation facility and park complex similar to those at Breithaupt, Forest Heights and Grand River, resulting in one such complex in each quadrant of the City. Currently, the City of Kitchener operates four community-based pools that have limited competitive capacity. One pool, Cameron Heights, has had diminished use over the last number of years and the Master Plan did present options for the possible closure of that pool due to access and other challenges. This pool has become a more specialized venue for leadership training and aquatic club use, with less emphasis on instructional, fitness and public swimming. Under this option the proposed South Kitchener community pool would be upgraded to an aquatic centre. The aquatic complex would cost in the $20 million to $25 million range, which would be approximately $18 million to $20 million over and above the proposed community pool cost. Additional land costs and site development requirements would be major components of this cost. As this option expands the capabilities of the proposed community pool, it would not create additional pool capacity in the community-based aquatics market. This strategy has the following significant challenges: • Would not have the diversified user base that a university venue would enjoy. • Would be located in an area most distant from the total service population, particularly for Waterloo users. • Would be less visible and accessible for inbound participants and spectators. • Could result in reduced community access as one trade-off for a competitive pool strategy. The fourth option would be to develop a green fields aquatic centre, probably as a stand alone facility, as few other multi-use choices exist beyond the ones discussed. Such a venture would cost $30 million or more, as ten to twenty acres of land would be required, site development costs would be significant and no capital economies of scale would be available. This strategy would be the least desirable, as it would likely require the facility to be on the periphery of the communities, would have the highest capital and operating costs and would increase overall aquatic services capacity in the two communities to the financial detriment of the existing indoors, which already experience significant operating deficits. The preferred strategy, if practical and feasible via a partnership agreement, would be to enlarge the Wilfred Laurier pool. It has the lowest capital cost, builds on an existing pool operation, does not increasing pool capacity significantly, and operates within an existing organization. It would Kitchener -Waterloo Sport Tourism Strategy 47 have the dual utilization of university programs and community use. If this option is not feasible, the second preferred option would be development of an aquatics facility with the University of Waterloo. This would have similar user profiles, but the capital cost would be higher. For both models, a comprehensive community use framework would be required, and consideration should be given to a joint governance structure. Fifty-metre pool complexes have variable operating deficits, ranging from approximately $400,000 to $500,000 a year for the London Aquatic Centre to over $600,000 a year for the Gretzky Centre in Brantford. Therefore, the ability to sustain the annual operating cost of such a facility becomes a critical factor. Only one major aquatics centre is practical or required within a population of 500,000+ people. In order to enhance the feasibility and reduce the operating deficits associated with an indoor aquatic facility of the magnitude discussed, maximizing total market utilization becomes absolutely essential and municipal boundaries are not a factor when trying to maximize utilization. Therefore, such a facility would need support from both Cities matter where it is located. Kitchener and Waterloo have worked together on a number of initiatives, including pursuit of the Ontario Games, Canada Games and numerous other sport tourism events. A joint investment in an aquatic centre would represent a large scale cooperative venture, but this approach would be the most practical for such a facility. 8.3.4 Soccer/ Fields Complex Soccer is one of the fastest growing sports in the country. In 2005, soccer registrations involved 500,000 individuals in Canada, the largest for any sport. By 2010, Soccer Canada projects 1 million registrants. Soccer's growth is coming about from three key factors: • The significant number of new immigrants to Canada, many of whom have played or are familiar with soccer. • The low cost of participation relative to equipment and fees. • The aerobic activity and exercise that is viewed as beneficial for both youth and adult participants. Over the next ten years, projections indicate significant growth in youth soccer, but more importantly in adult soccer, as many youths carry soccer-based activity and fitness preferences into their adult life. The emergence of masters and adult soccer leagues reflects the same trends that occurred for hockey many decades ago and slo-pitch in the 1970s and 1980s. Therefore, demand levels for soccer are likely to grow significantly across all age levels. Kitchener -Waterloo Sport Tourism Strategy 48 The Waterloo Minor Soccer Association has identified a need for substantial growth in soccer pitch capacity. They have proposed a joint facility with the University of Waterloo. The City of Kitchener Leisure Facilities Master Plan identified the need for increased soccer pitches in several locations in the City, including the South Kitchener District Park. Currently, the City of Waterloo has developed twelve soccer pitches on two components of RIM Park. One site has nine soccer pitches and the other three, which are separate from the main facility. RIM Park also offers indoor soccer facilities. This development represents a significant investment in soccer field capacity and is reflective of the growing prominence of the sport and the trend to create larger complexes. In Kitchener, Budd Park on Homer Watson Boulevard has been developed as a primary soccer venue, with three full sized soccer pitches and an indoor soccer facility. The City has not developed an aggregated soccer complex and has used a more distributed delivery model. Additional full sized soccer pitches are scheduled for the South Kitchener District Park. The growth of soccer has created increasing interest in local, recurring tournaments for boys and girls at both house league and competitive levels. In the future, adult and masters tournaments will increase for both men and women. From a sport tourism perspective, the development of a multi- field soccer complex, including a signature field with seating and a clubhouse I service centre is gaining more prominence. The Town of Lakeshore has developed afifty-acre facility with nine fields and a proposed clubhouse, seating and related facilities. The City of Windsor has developed a similar facility along Highway 401 at the entrance to the community. The City of London has developed asix-field complex that has become a tournament centre and is considering a second complex. Burlington, Oakville and many other communities are moving to the high quality aggregated field model that supports local association play and sport tourism interests for both local associations and larger events. Developing a soccer complex to support tournament play as well as local use is a practical investment in light of the growth that is occurring in the sport and the concerns over field capacities. Both municipalities will be investing significantly in soccer fields directly or in partnership with user groups, as the continuing pressure for expanded capacity grows. A soccer complex may be designed to support other sports, such as football, rugby and potentially cricket, all of which could use the clubhouse, seating, parking and related resources for their annual recurring and larger sport tourism events. This integrated, multi-use approach should be considered to capture the maximum benefit across multiple sports. Another feature of such a complex would be its ability to support created events. The World Frisbee Championships, community festivals, outdoor concerts, fireworks displays and other activities can be peripheral uses for such a venue if designed with flexibility and multi-use goals. Kitchener -Waterloo Sport Tourism Strategy 49 This multi-use perspective can maximize the return on investment, but will require a strong scheduling, priority and user group framework to ensure fairness and equity of access. Budd Park would be the preferred location for a soccer complex due to its accessibility, strong soccer focus and current quality levels, along with both the indoor and outdoor capacities. Expanding Budd Park should be considered as a potential platform for a soccer complex, whether stand alone for the City of Kitchener or joint use. However, its accessibility from Waterloo would likely reduce the interest of Waterloo users in terms of the community use of that facility. Additionally, expandability of the venue is a significant constraint in terms of adding five to seven full-size soccer pitches, stadium seating and expanded clubhouse facilities. Therefore, Budd Park represents a strategy for the City of Kitchener, dependent on the ability to secure adequate additional lands, which is likely limited or relatively unattainable at this time due to the surrounding industrial land uses. Given the constraints associated with expanding Budd Park, four development opportunities are identified at this time for additional, high level soccer facilities: • Partnership with the University of Waterloo as proposed by Waterloo Minor Soccer Association. • Expansion of RIM Park. • Kitchener South District Park. • Green fields development. The University of Waterloo has significant lands already associated with soccer and available to support such activity. There is good access from the Conestoga Parkway to the Columbia Avenue site. Also, university and community uses would prevail, thus intensifying the overall utilization and revenue potential. The University already maintains fields and has operating capacity. However, a strong community access and affordability framework would need to be developed which could be a significant challenge. This would need to bean evident pre-condition for such a venture. One of the challenges of this approach would be its distance from the Kitchener population. As well, Kitchener has its own Minor Soccer Association that plays on city fields, and the benefit of such a development to Kitchener groups would be reduced and potentially negligible. The second option would be expansion of the RIM Park soccer fields. Current investigations are examining the potential for three additional full-sized fields. These would likely be offsets for the potential loss of the fields at Bechtel Park if Parkview Cemetery is expanded. However, the benefit of this strategy would be the consolidation of fields onto one site supporting large tournament play. The South Kitchener District Park is a major future investment for the City of Kitchener. If additional lands could be purchased, a soccer complex could be developed there, building on the current Kitchener -Waterloo Sport Tourism Strategy 50 development model for the site which already incorporates two full-sized soccer fields and other services. The site is intended to have parking and other amenities, and therefore a key building block would be in place. Additional lands would likely be needed to support such a soccer complex so that other proposed uses are not displaced, as they are important within the overall context of serving the southern area of Kitchener as a district park. The issues with the South Kitchener District Park are two-fold. The first is accessibility, which is not ideal given the location and distance from the population. The second issue is that this site would have marginal benefit to Waterloo groups who play on their own fields and would be a significant distance from this site. The fourth strategy would be a green field site close to the border of the two municipalities where joint use could be more feasible for the various leagues within Kitchener and Waterloo. A site of potentially 50 to 75 acres would be required, with the development of eight to twelve full playing fields along with mini fields. A cricket facility could also be considered to capture economies of scale from joint use. The ancillary amenities would include a clubhouse, parking, bleachers and field separation space, with one field designed as the stadium pitch for tournaments playoffs and finals. This model would support joint use between the municipalities as proximity to both communities would allow utilization by both youth and adult soccer leagues on a day-to-day basis, as well as sport tourism initiatives. However, such a model would not encompass the university programs to intensify the utilization of the venue. In the end, two options emerge as possible. The first would be for each municipality to pursue its own complex, South Kitchener District Park for Kitchener and adding to RIM Park or the University of Waterloo partnership in Waterloo. Such strategies would recognize that this sport is realizing significant growth, the youth programs are municipally-based and overall capacity needs will grow significantly throughout the Twin Cities for the next ten to twenty years. This option would involve two smaller developments with costs in the $5 million range over aten- yeardevelopment period, involving land, site and field development, including lighting and irrigation of one or two fields. This strategy would need to eventually consider a clubhouse, permanent seating and related amenities. In total, a $10 million to $12 million investment between the two municipalities would likely be required for the two venues. The final cost would depend on what partnerships and what current investment plans are already in place that could reduce the costs. The second option is a green field site. This approach would likely cost in the $12 million to $15 million range to purchase land, undertake site development and the stand alone construction costs of a clubhouse 1 support facilities, and a stadium field. Kitchener -Waterloo Sport Tourism Strategy 51 8.3.5 Baseball Baseball has had significant declines in participation over the last decade. In some communities, the declines have been in the 30% to 60% range since the Toronto Blue Jays last won the World Series. Baseball has been impacted by soccer, golf and other sports. Key issues that have often been cited by parent focus groups include the limited aerobic activity, the uncertainty of game length and the pace of play. The City of Kitchener has developed significant baseball facilities. The Jack Couch Baseball Field at the Kitchener Memorial Auditorium Complex provides a single field tournament site and supports Inter-county and Junior league play. The Peter Hallman Ball Yards has been developed as a tournament site for slo-pitch and softball and has hosted International Softball Congress events on several occasions. The City of Kitchener also has ball fields at Breithaupt Park, Wilson Park and other locations that can supplement the primary tournament venues. In regards to the Kitchener Leisure Facilities Master Plan and the consultation program for the Kitchener-Waterloo Sport Tourism Strategy, no strong evidence was provided of the need for additional baseball facilities, either for hard ball, soft ball or slo-pitch. The largest events from a sport tourism perspective are the major adult slo-pitch tournaments, which have historically been anchored in St. Catharines, Dorchester and London, all having complexes with four to twelve fields for this activity. Two of the complexes are publicly owned and one is privately operated. However, the number of teams participating in slo-pitch has declined in most municipalities, similar to what has occurred in minor baseball. Relative to baseball sport tourism initiatives, continued investment in Peter Hallman Ball Yards appears to be the most appropriate strategy in light of its history of events, capacity and accessibility. No initiatives associated with hard ball are identified at this time as additional tournament play opportunities are not deemed to be significant. In the consultation program for the Sport Tourism Strategy, a baseball group in Waterloo did identify a deficit in facilities that could be used for local, recurring tournaments and some provincial tournaments. However, additional fields of higher quality would be needed. The preferred strategy to address this need would be to enhance existing fields and to develop new fields in emerging district parks as they are developed within the Waterloo area. A baseball complex is not seen as a priority investment in light of the competitive environment and opportunities in other sport tourism sectors. 8.4 Facility Development Strategies In assessing the value of these investments, the key considerations include: Kitchener -Waterloo Sport Tourism Strategy 52 • Such facilities support higher level sport tourism events that can bring economic benefits and visibility to the community. • These facilities also become a significant resource for the training and development of high performance athletes which can attract coaches, participants, sponsors and others to the community to utilize such facilities, as these training centres draw from large regional audiences. • Some of these facilities would provide enhanced community use for both recreational and competitive play, replacing aging and higher operating cost facilities. • Certain economies of scale could be realized if such facilities were to replace venues scheduled to be de-commissioned, or developed based on a proposed or existing facility investment platforms. • Green field development of stand alone facilities is the most capital intensive alternative and has the most significant operating cost requirements. This would be the least preferred way to proceed. Many of the sport tourism facilities required for Kitchener and Waterloo to attract larger regional and national events can only be supported by the larger population base of the combined cities. Kitchener and Waterloo would need to consider the joint development of these facilities, as such venues, with the exception of soccer, are of a magnitude that only one would be required in the Twin Cities market. To support the significant investment and ongoing operating costs of such venues, high utilization from a broad range of user groups is required. As noted earlier, sport tourism activity in and of itself cannot sustain the development of major new sport facilities. Accordingly, the preferred model, if appropriate partnership frameworks can be developed to ensure community affordability and access, would be partnerships with the universities or other stakeholders that represent the primary local market demand for the facilities. Such an approach would provide utilization from: • Community groups and programs. • University programs for academic, intramural, recreational and varsity use. • Local recurring tournaments for youth and adult leagues. • Higher level tournaments, meets and events. • Elite athlete training • Special events and festivals. Kitchener -Waterloo Sport Tourism Strategy 53 City and university partnerships for an aquatic centre to serve the Twin Cities, and for soccer fields to serve the City of Waterloo, warrant further investigation. However, it is less evident that such a partnership would be viable for a stadium or a larger multi-purpose arena and entertainment complex. If partnerships with the universities are not possible, the other options would be: • Joint development between the Cities of Kitchener and Waterloo. • Development by an individual municipality. • Not to pursue further investments in this sport tourism market segment. In the end, the Cities of Kitchener and Waterloo face a sport tourism market segment that they cannot currently pursue. Due to the continuing changes in hosting requirements, the municipalities may experience further erosion in their tournament hosting capacity. Therefore, consideration needs to be given to assessing whether the municipalities, alone or jointly, wish to develop the facilities required to pursue this sport tourism market segment in order to sustain the long tradition of tournament hosting and to expand their involvement in this market segment. The willingness and ability to invest significant funds, alone or via partnerships, and to support the ongoing costs of pursuing opportunities in this market segment are the critical decision points. There is no point in developing these facilities if the organizational infrastructure is not in place to actively pursue the events for which these facilities are developed. The facilities and the organizational capacity to attract events go hand-in-hand and must be assessed and planned for collectively. Probably the most significant consideration in developing a strategy for this sport tourism market segment is the future of the Kitchener Memorial Auditorium Complex. This is reflected in two key considerations: • If expanding or replacing this facility were to be undertaken, the capital dollars required could displace investments for the other facilities discussed in this report, unless apartnership-based strategy could be developed. • Any Centennial Stadium redevelopment strategy is dependent on the future direction for the Kitchener Memorial Auditorium, and therefore, these two initiatives are closely aligned in terms of the alternatives available. For the other major sports facilities discussed in this report, the key considerations are summarized below: • Soccer facilities have greater feasibility in that significant investment in new soccer pitches will be required over the next ten to fifteen years to support the community Kitchener -Waterloo Sport Tourism Strategy 54 growth in the sport. As such, the sport tourism dimensions can be incorporated on an incremental cost basis. • An aquatic centre is a high capital and operating cost facility. Kitchener and Waterloo have a potential option in regards to an expansion proposal at the Wilfred Laurier pool that has significantly lower capital costs if feasible and the required community access and affordability framework were achievable. The other aquatic facility investment alternatives are substantially more expensive. • Business cases will need to be developed for initiatives pursued for this sport tourism market segment, based on community use, events and high performance training. 8.5 South Kitchener District Park 1 Community Centre For the City of Kitchener, questions have been raised in regards to what potential role the South Kitchener District Park and Community Centre could play in the sport tourism strategy. As a green field development, the opportunity to incorporate higher quality facilities for sport tourism initiatives could be considered. However, the following key principles need to be insured: • The recommendation to develop this venue, for both the park and the community centre components, was based on a district servicing strategy and the provision of such resources in each of the four quadrants of Kitchener. Therefore, community use and access need to be insured. • Site expandability to facilitate a soccer complex or other uses would need to be viable. • The park's location is less attractive from a sport tourism perspective when one of the key considerations is convenient access for out of town participants and spectators. Supporting amenities such as restaurants, accommodation, retail, attractions and related event needs, are limited. Based on the sport tourism facility initiatives profiled, the soccer complex is the only immediate opportunity with potential for the South Kitchener District Park. The other facility initiatives, primarily due to location or preferred alternatives, are significantly less desirable at this venue. From a longer term perspective, four pad arenas have become an emerging standard for annual recurring tournaments and league operations. The Cities of London, Hamilton, St. Catharines, Waterloo, Pickering, Windsor and other communities have moved in this direction. The City of Burlington in 2008 will add two more ice surfaces to the Appleby Centre and join this group. Other communities are considering such strategies as well, which is driven primarily from two perspectives: Kitchener -Waterloo Sport Tourism Strategy 55 • Economies of scale for both arena capital and operating costs. • Sport tourism enhancements, as tournaments can operate from one site. One of the potential considerations for the South Kitchener District Community Centre would be the addition of two more ice surfaces over the longer term, post-2015, to create a four pad facility. The Kitchener Memorial Auditorium Complex offers a three pad facility for sport tourism events. However, in the long-term, the growing community demand for ice time could support a new four pad complex without undermining utilization of the Aud. This could also free up facilities at the Aud to support other sport tourism initiatives, additional floor shows and other non-ice activities. Kitchener -Waterloo Sport Tourism Strategy 56 9.0 Findings and Conclusions 9.1 Strengths, Weaknesses, Opportunities & Threats The Kitchener-Waterloo area has a host of excellent community recreation and sport facilities with proven capacity for sports events. Most notable amongst these facilities are: These "first tier" sports facilities are supported by a broad range of indoor and outdoor facilities, allowing the Twin Cities to host large tournaments in hockey, soccer and baseball, amongst others. RIM Park Kitchener Memorial Auditorium Waterloo Memorial Peter Hallman Ball Yards Recreation Complex Wilfred Laurier Athletic Budd Park Complex WLU University Stadium As good as these facilities are, they do not bestow any particular competitive advantage on the Twin Cities. London, Hamilton and Ottawa have larger arenas and stadia. On a national scale, cities such as Halifax, Winnipeg, Edmonton and Calgary also have larger arenas and stadia, and face less provincial competition - a significant factor for events that have a geographic rotation policy. Facility size will preclude the pursuit of a number of national and international events that provincial competitors such as Hamilton, London and Ottawa, and national competitors such as Halifax and Winnipeg, are able to pursue. Venue capacity is a constraint for every city to some degree -Toronto had to build a 20,000 seat stadium to host the FIFA U-20 World Cup. To pursue larger sport tourism events, the Twin Cities would need an arena of at least 10,000 seats. However, the Twin Cities would still be competing with Hamilton, Ottawa and London for events such as the Brier or World Juniors, and could only expect to land such events every ten to twenty years. As such, large sports tournaments will not have a material impact on the feasibility of a new sports and entertainment facility. Such a development will require additional local market support from resident sports teams and a strong calendar of concerts, consumer and trade shows and other such events. To move into larger events in other sport areas, afifty-metre pool with a diving well, a new outdoor stadium with an eight-lane track and a soccer complex represent areas for potential investment. Unlike amulti-purpose sports and entertainment venue which can attain some degree of financial self sufficiency from resident sports teams, concerts and other events, these specialized sports venues would likely require ongoing operating support from the municipalities or local sports groups. Kitchener -Waterloo Sport Tourism Strategy 57 The development of such facilities, therefore, must be based on local market demand and ideally, would be done in partnership with an educational institution and/or sports group to provide ongoing support. As noted earlier, many of the marquee events are only available to a municipality every ten or twenty years. There is a growing school of thought that suggests the economic impact of major events is grossly overstated, as it fails to take into consideration the crowding out of normal travel, disruption of typical local business patterns, leakage of expenditures outside of the community, and trailing infrastructure support costs. It can be argued that a series of smaller events, and in particular recurring annual events, can bring more long-term economic benefit to a community than one major event every decade. Tournament hosting capacity is also constrained by the current level of facility utilization. Community sports leagues and recreational programs consume a significant amount of available time for local sports fields and recreational facilities, limiting the amount of time available for hosting sports tournaments without displacing local programs. However, this situation is not unique to the Twin Cities, and is not considered a material competitive disadvantage. In terms of organizational infrastructure, the Twin Cities have well established leagues and sports tournament hosting capacity in several sports, including hockey, baseball, soccer, figure skating and water polo. From a marketing perspective, the Twin Cities are at a disadvantage compared to most of their provincial and national rivals which have established specialized sport tourism marketing organizations. The Twin Cities also lack an established central Destination Marketing Organization to promote the region as a tourist destination. Kitchener -Waterloo Sport Tourism Strategy 58 10.0 Strategic Framework The Sport Tourism Strategy is built upon five platforms: 1. Developing community capacity -programs and services to assist event organizers in delivering well-managed and sustainable events. 2. Enhancing event impact -strategies to help selected events increase economic and community development impacts. 3. Attracting new, high impact events -initiatives to attract new events that support the Twin Cities' goals and objectives. 4. Exploring opportunities for created events 5. Increasing community support for and understanding of sport Tourism 10.1 Developing Community Capacity As noted earlier, the Twin Cities have an impressive line-up of sports tournaments, including annual events in youth hockey and soccer, and events such as the ISC World Championships that can be expected to return on a regular basis. The cities also have a long and successful record of hosting events that rotate on a much longer cycle (10 to 20 years) such as the Tournament of Hearts. Local, recurring tournaments, meets and events represent the greatest source of economic impact and sport tourism activity in a community. Ensuring that existing events are successful and sustainable is the foundation of this sport tourism strategy. By providing an opportunity to participate in or be exposed to sports, these events support municipal goals for healthy living. They are important fund raisers for local sports groups, which may lessen the demand for municipal support and allow municipal resources to be redirected. And finally, a municipality's track record in tournament hosting is an important consideration in bidding for new events. While some local organizations have considerable experience and resources to support their tournament hosting activities, this is not always the case. Volunteer capacity is an ongoing challenge for even established organizations. Smaller groups often struggle to assemble the management resources required, and ancillary activities (hospitality, entertainment, accommodation, vendor recruitment and sponsorship) often suffer as a result. Many organizations rely almost entirely on the personal knowledge and experience of their key volunteers, rather than established operating procedures that help ensure consistency in case of management changes. Our sport tourism strategy addresses these issues with a series of programs to build organizational capacity in the community. Specific initiatives include: Core Program -assemble and disseminate an Event Planning Tool Kit for current and prospective Event Organizers. Information in the Tool Kit could include all or some of the following: Kitchener -Waterloo Sport Tourism Strategy 59 a. Tournament Organizers Handbook, listing facilities, suppliers, hospitality and entertainment options, accommodation, municipal contacts, local media etc. Tourism Regina provides an excellent manual for tournament organizers that can be used as a template. b. Municipal Policies and Procedures -assemble all relevant municipal policies and procedures into one reference source. Topics could include Facility Booking Guidelines & Applications, Fee Schedules, Procedures for Road Closures; Procedures for Vendors, Procedures for Municipal Services; Waste Management and Recycling Guidelines; Police, Fire and Ambulance Requirements, Food Handling and Beer Garden policies, Lottery and Raffle guidelines. c. Standard forms and procedures -assemble examples of the forms, procedures and agreements typically required for event operations. This could include vendor agreements, sponsorship agreements, advertising agreements, volunteer registration, emergency procedures. Core Program -develop and implement a series of ongoing workshops and roundtables for event organizers. Optional Program -provide web-based assistance in volunteer recruitment and event registration. There are a number of well-established software applications available for these functions. Optional Program -provide event management assistance through direct involvement of sport tourism staff on the Organizing Committee for selected events. For recurring annual events, this is typically structured as an Incubator Program, with the management support being provided for a specified period (usually less than three years), in order to gauge the sustainability of the event. Optional Program -provide event financial assistance through a Sports Event Grant Program. This could be structured as an Incubator Program to assist new events or existing events with further growth potential that meet specific criteria (e.g. size of event, duration, time of year). Financial assistance could be by way of direct grant, or by a waiver or reduction of municipal charges. 10.2 Enhancing Event Impact Event Organizing Committees focus much of their efforts on the logistics of staging the event. To the extent marketing plays a role in event planning, it is often focused primarily at Active participants - recruiting teams or individual athletes, as opposed to spectators. This is understandable, as the economic benefit of additional spectators is captured by others, most notably hotels, retailers and Kitchener -Waterloo Sport Tourism Strategy 60 restaurateurs. Indeed, many of the Twin Cities' larger youth tournaments do not charge a spectator admission fee, and so receive little tangible benefit from additional attendance. While the Organizing Committee may not benefit greatly from additional spectator attendance, the overall economic impact of such visitation is significant, with enhanced spending on area accommodation, retail, foodservice and attractions. Accordingly, the Twin Cities Sport Tourism Strategy should include programs aimed at: 1. Building attendance from spectators, particularly those outside the daytrip market; and 2. Increasing average length of stay and visitor expenditures from spectators and active participants. Specific initiatives include: Core Program -working with local Destination Marketing Organizations and Event Organizers, develop and implement an "Attendance Builder" program for use by Event Organizing Committees. Attendance Builder programs are aimed at active participants and their families, and seek to "expand the attraction" beyond the event itself. They are particularly important in event categories where active participants must choose amongst a variety of possible event venues (e.g. marathons), where the appeal of the destination can play a role in event selection. Attendance Builder programs can include some of all of the following elements: • Web site linkage • Program shells • Promotional brochures, visitor guides, visitor maps • Promotional videos, DVDs and loops • Suggested itineraries (e.g. for pre-and post event visits, spousal programs) • Assistance in designing event marketing and collateral material Core Program -facilitate the development of accommodation packages by bringing the key stakeholders together. Stakeholders include event organizers, accommodation, restaurant and attractions operators. Optional Program - underwrite a portion of the marketing costs to develop andlor promote such packages. Such support, if provided, should be based on the participation of other key stakeholders, in particular accommodation partners, restaurants and area attractions. 10.3 Attracting New, High Impact Events 10.3.1 Establishing an Event Evaluation Framework Attracting new sport tourism events is generally perceived as a "matching" process -identifying prospective events with technical requirements that can be met by available sports facilities, Kitchener -Waterloo Sport Tourism Strategy 61 organizational capacity, financial resources, accommodation etc. This process is an essential one in identifying prospective events, but our strategy adds another step to the evaluation process. As resources are limited, it is important that the application of these resources -sports facilities, community volunteers, city staff and financial support - be directed at new events that provide the best return on investment. In this strategy, return on investment goes beyond the traditional definition of economic impact, and reflects the degree of alignment between the event and the municipal goals and objectives outlined in the cities' Strategic Plans and Departmental Plans. The starting point in the event selection process is to establish an Evaluation Framework that measures prospective events against municipal goals. As noted earlier, the benefits of sport tourism can be broadly grouped into three categories: Health and well being benefits include physical fitness and health; fun, recreation and relaxation; sense of achievement; family or household activity; and skills development. Social benefits include family and community cohesion; interpersonal connections; community safety; promotion of culture, heritage and diversity; and youth development. Economic benefits include direct and indirect expenditures by participants, volunteers and attendees; enhanced municipal profile, and the creation of event legacies. Using these general headings, we have developed a draft Evaluation Framework for sport tourism events, shown on the following page. 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A' 0 ~Nt N 3 L [ L ~ _ ~ a"i _W ~ N 0.Sp ~~~•U ~ ~ ~ O~N~U ~ ~ ~ N a--~ ~ L UO > [ C ~ ~ ~ _ ~' N O N U ~ ~ ~ O >~ ~ N m ~O ~~~ O ~N N `~ >•~ >,~~•N ~N~N ~ Q~ 'L~'U ~N~O N ~Q L~~(~~ LL.~~>~ _v , L ~o ~ ,~ ~ - ~ ~ _ spp _ ~ ' c o~ o ~ ~ c~ as c:~ ° ~~ =3 c nm wm N 0 t1 In order to finalize the Evaluation Framework, it will be necessary to integrate the strategic and departmental plans and policy reviews that have been completed or are currently in progress at the municipal level, and to agree upon a system to assign priorities to the benefits categories. 10.3.2 Identifying Prospective Events There are four general market segments from which the Twin Cities may draw new sport tourism events: Local annual tournaments, meets and events; bid-based events that can be hosted with existing facilities (Best-fit Events); Events requiring new facilities (Non-fit Events) and Created Events. Local, Annual Tournaments, Meets and Events From a volume perspective over time, local, annually held tournaments, meets and events represent the greatest source of economic impact and sport tourism activity in a community. This outcome results from the following considerations: • They are held annually or nearly annually compared to other events that may be hosted once every five, ten or twenty years. • They do not require a bid proposal or the formation of large proposal teams. • They are integrated into the organizational infrastructure of existing groups who are highly motivated to pursue these events for the following reasons: o Provide diversity and unique experiences within their overall programming for both participants and volunteers; o Represent significant opportunities to raise funds for the local organization in support of specific projects or to reduce participant fees; o Have a strong history and experience base to continue to grow the event, rather than securing new events that may have a higher risk; o Can incorporate opportunities for current sponsors and funders to participate on a value-added basis. • 33% to 50% of the participants on average are from out of town and will use accommodation, food, retail and other services providing a consistent economic impact from year to year. • Have broad application across all sporting activities, e.g. hockey, baseball, soccer, aquatics, cricket, for both adults and youth, and for competitive and house league 1 recreational levels of participation. Events in this market segment may not generate a great deal of media attention or market awareness outside of their core stakeholders. However, they can generate significant economic Kitchener -Waterloo Sport Tourism Strategy 64 and community benefits. The primary objective should be to deliver new events in partnership with existing community organizations. This approach allows the municipalities to support the goals of its community stakeholder groups, lessens the financial and management burden on the municipalities, and mitigates the impact of displacing community use of the sports venues. Bid-Based Events on a Best Fit Basis This market segment involves provincial, regional, national and international sporting events that are undertaken on a bid basis. The event hosting cycle for such events can be as short as two years for smaller niche events, to as much as twenty years for the marquee events. Successful bids require four principal capacities: • Facilities • Organizational infrastructure • Logistics and support services (e.g. accommodations, transportation, etc.). • Financial (e. g: sponsorships, ticket sales, direct funding, etc.) These events generally require a bid team and a bid proposal, which may entail front end costs. The bid process is typically competitive, with an increasing number of events requiring financial guarantees from the host community or bid sponsor. Despite the higher costs and attendant risks, events in this category are still seen as very desirable by many communities, for the following reasons: • Significant potential to bring non-resident Active participants and Attendees to the community, resulting in economic benefits to the accommodations, food services, retail and other sectors. • Depending on scheduling, can absorb underutilized or unutilized facilities space, providing increased revenue for municipal and private sports facilities. • Can provide significant public and media exposure for the community, such as the Canada Games which now carries with it 150 hours of direct television programming over atwo-week period. • Allows local athletes to perform in front of their families and aspire to higher performance levels. • In some situations, capital funds are available from senior levels of government that can leave a facilities legacy. • Can be a motivating experience for volunteers. Kitchener -Waterloo Sport Tourism Strategy 65 • Allows local sports organizations to develop volunteer, technical, training and other skills and capacities that benefit the organization and the community. These events should be pursued based on a best fit basis, that is where Kitchener and Waterloo, either together or separately, have: 1. The capacities necessary to host the event 2. A reasonable opportunity to secure the event, given the competitive environment and the costs associated with the bid. 3. An acceptable return on investment and manageable risk profile. Costs and benefits should be measured across all criteria. Event staging costs include both direct costs for event staging and facilities development, contingent costs such as revenue guarantees, and indirect or intangible costs for congestion and disruption, displacement of existing programs, re-allocation of funds from current programs, and the demands placed on the organizers and the community. The return on investment analysis must assess the benefit that would potentially be realized if successful in securing the event compared to the costs of delivering the event. Non-Fit Major Events Major single and multi-sport events often require the development of new facilities. As facility, corporate sponsorship and financing requirements evolved over the past decade, particularly for national and international events, an increasing number of the marquee national and international events now fall outside of the Twin Cities' facility capacity, including some events that have been successfully staged in Kitchener and Waterloo over the past twenty years. The premier national and international championships in hockey, curling, track and field and aquatics, for example, cannot be hosted without new or expanded facilities. The development of major sports facilities cannot typically be justified based on sports tournament opportunities. It may be a decade or longer before a return bid can be staged for a marquee national event, and during the intervening period it is very possible that venue requirements may further evolve. The development of major new facilities must be supported primarily by the participation needs of local residents and sports organizations. A major sport tourism event, however, can provide the catalyst for new projects and create opportunities for fundraising, partnerships, financial support from senior governments and other considerations such as a national training institute. These opportunities can enhance the viability of a new facility. Our sport tourism strategy includes the following initiatives aimed at attracting new high impact events: Core Program -finalize the draft Event Evaluation Framework based on goals, objectives and strategies outlined in approved municipal and departmental strategic plans. Kitchener -Waterloo Sport Tourism Strategy 66 Core Program -develop and implement a marketing and communications strategy to promote the Twin Cities as a sport tourism destination. The primary vehicle for this strategy should be a dedicated sport tourism website. Core Program - establish a prospect list of Sport Governing Bodies and the events they control at the provincial, regional, national and international level. The starting point for development of this prospect list is the Canadian Sport Tourism Alliance database. While this is a useful tool, the information contained in the database is incomplete, particularly with respect to host city requirements. On the following pages we have identified national sport governing bodies and the national events they control that should be considered prospects for Kitchener and Waterloo. In many instances there are corresponding provincial sport governing bodies and provincial championships. Hosting a provincial event is often a necessary first step to securing a national championship. Amore complete data base of national sports governing bodies and prospective national championships is contained in Appendix 2 (submitted under separate cover). Core Program -confirm the level of organizational support and capacity available from local sports organizations. Core Program -establish the "Top Prospects list". Top Prospects will be events that produce Health & well being, Community and Economic benefits most closely aligned with municipal goals; that can be hosted by facilities currently in the planning or development stage; and that have strong support and organizational capacity from local sports groups and other stakeholders. Core Program -establish and maintain effective working relationships with the Sport Governing Bodies identified as Top Prospects. Core Program -prepare Business Case for targeted events, identifying funding commitments required from the municipalities and other stakeholders. Core Program - establish a Bid Development fund to assist in Host City bid preparation for selected events. Optional Program -establish an Event Development fund to provide financial assistance for staging selected high impact events. Optional Program - -provide event management assistance through direct involvement of staff on the Organizing Committee for selected events. For marquee events, and in particular where the municipalities have financial exposure, this may be in the form of Executive (board) level participation, as well as dedicated municipal staff in key operations support roles. Kitchener -Waterloo Sport Tourism Strategy 67 National S orts Governin Bodies and Potential Events for Kitchener & Waterloo Or anization Potential Twin Cit Events Athletics Canada Canadian 10 km Road Race Championships Canadian Cross Country Championships Canadian Half Marathon Championships Canadian Marathon Championships Canadian Road Race Walk Championships Canadian Wheelchair Marathon Championships Baseball Canada Canadian Bantam Championships Baseball Canada Cup Canadian Junior Championships Canadian Midget Championships Canadian Pee Wee Championships (Invitational) Canadian Senior Championships Basketball Canada Midget GirlslMidget Boys National Championship Girls National Championships Jack Donahue International Classic Canadian Adult Canadian Adult Recreational Hockey World Cup Recreational Hockey Association Canadian Colleges Cross Country Running National Championships Athletic Association Badminton National Championships Golf National Championships Men's Basketball National Championships Men's Volleyball National Championships Soccer National Championships Women's Basketball National Championship Women's Volleyball National Championships Canadian Curling Canadian Curling Trials Association Continental Cup Canadian Sr. Men's & Women's Curling Championships Ford World Championships M&M Meatshops Canadian Jr. Men & Women's Championships Mixed Curling Championship Scott Tournament of Hearts Canadian Interuniversity Men's Volleyball Championship Sport Cross Country Championships Final 10 Men's Basketball Men's Ice Hockey Championships (University Cup) Men's Soccer Championship Women's Basketball Women's Field Hockey Championship Women's Ice Hockey Championship Women's Rugby Championships Women's Soccer Championship Women's Volleyball Championship Wrestlin Championship Kitchener -Waterloo Sport Tourism Strategy 68 National Sports Governin Bodies and Potential Events for Kitchener & Waterloo Or anization Potential Twin Cit Events Canada Soccer Various - U14, U15-17, U16 Boys & Girls Canadian Club Association Championship Special Olympics Special Olympics Canada Special OI mpics Ontario Special OI mpics (various) Canadian Ultimate Canadian Ultimate Championships Players Association Canadian University Ultimate Championships Canadian Wheelchair Canadian Wheelchair Basketball National Championships Basketball Association Canadian Wheelchair Basketball Junior and Mini Finals Canadian Wheelchair Basketball Open Finals G mnastics Canada Canadian G mnastics Championships Hockey Canada Esso Women's National Hockey Championships Telus Cup The RBC Royal Bank Cup Four Nations Cup IIHF World Women's Championships National Women's Under 18 Championship World U-17 Hockey Challenge World Jr. A Hockey Challenge International Ju Jitsu World Ju Jitsu Championships Federation Sport Alliance Ontario Paralympics (summer and winter) Ontario Games (summer and winter) Ontario Senior Games (summer and winter) Rin ette Canada Canadian Rin ette Championships RCGA CN Canadian Women's Open Canadian Amateur Golf Championship Canadian Club Champions Championship Rugby Canada Canadian National Senior Women's Rugby Championship Barclays Churchill Cup National Championship Festival Skate Canada BMO Financial Group Skate Canada Junior Nationals World Synchronized Skating Championships BMO Financial Group Skate Canada Synchronized Championships Softball Canada Bantam Girls Canadian Fast Pitch Championships Blue Convention Junior Mens Canadian Fast Pitch Championships Junior Womens Fast Pitch Canadian Championships Midget Boys Canadian Fast Pitch Championships Midget Girls Canadian Fast Pitch Championships Peewee Girls Canadian Fast Pitch Championships Senior Men's & Women's Canadian Slo-Pitch Championships Senior Men's Canadian Fast Pitch Championships Senior Women's Canadian Fast Pitch Championships Slo Pitch Canada Combat Challen e Volle ball Canada Volle ball National Championships (Beach & Indoor) Kitchener -Waterloo Sport Tourism Strategy 69 10.4 Exploring Opportunities for Event Creation One of the growing areas of Sport Tourism is the creation of new events based on emerging sports trends, local traditions, creativity, capacities and other variables. The World Pond Hockey Championships is an excellent example of a created event. Held annually in the Village of Plaster Rock, New Brunswick (population 1,300) this three day event attracts more than 500 participants and 6,000 spectators from 13 countries, and generates world-wide media coverage. Closer to home, the Gender Bender Ultimate tournament in Fergus Ontario attracts 40 teams from across Ontario and the border states for three days of "ultimate frisbee" competition. The genesis for many of these events often comes from a relatively small group of enthusiasts within the community. These events typically do not count towards national championships, and in many cases, face competition from similar events in different locales. Very often, Active participants will only take part in one or two such events each year. To evolve into something more than just a local or regional event, created events require "a hook". The attractiveness of the host city and the schedule of activities surrounding the event are often the key to its success. While not every created event has the potential to grow into a major tourism draw, the potential economic impact can be very significant for those that do. a INTERA9AT1{INAL MARATH~}M The Blue Nose International Marathon illustrates the potential of Created Events. Launched in 2004, the inaugural event attracted 3,700 participants. In 2005 a 5K run and walking events were added, and in 2006 ScotiaBank signed on as Presenting Sponsor. Last year's event attracted 6,300 participants. The event ran from May ~9 to 2~, and included: • Doctors Nova Scotia Youth Run: 2,292 participants • Rogers Wireless 5K Walk/Run: 466 participants • Chronicle Herald WOK: X089 participants • Volkswagen Half Marathon: ~ 542 participants • Head Shoppe Team YMCA Team Relay: 57 Teams • Full Marathon: 342 participants This year, marathon organizers broke their attendance record with more than 7, 000 participants. Our sport tourism strategy includes the following initiatives aimed at the creation of new sport tourism events: Core Program -investigate niche market opportunities for new event types (e.g. adventure racing, 3-on-3 soccer) and to identify emerging marketing trends. Core Program -identify local market support, participation levels, infrastructure and organizational capacity. Core Program -prepare Business Case for new events determined to have market potential based on track record of comparable events and local capacity. Kitchener -Waterloo Sport Tourism Strategy 70 Optional Program -establish an Event Development fund to provide financial assistance to selected new events. 10.5 Increasing Community Supportforand Understanding of Sport Tourism Implementation of this sport tourism strategy will require the commitment of municipal resources including staff support, the provision of municipal sports facilities, and in some instances, direct financial aid for event marketing and hosting. Current facility users may be displaced and some residents may find their normal routines disrupted by road closures, increased traffic or demand for local services (restaurants, hotels, retailers). Even those not directly affected by staging a sports tournament may believe that municipal resources would be better spent on other programs. To sustain apro-active sport tourism strategy, therefore, requires a broad understanding of the economic and community benefits that can be obtained. Core Program - develop a communications and advocacy strategy aimed at the community at large, and at the key stakeholder groups most directly affected by the proposed sport tourism strategy. Included in this latter category are local sports organizations, sports facility users, local media; accommodation operators, attractions operators and the foodservice and retail sectors. Core Program -develop the collateral material (fact sheets, briefing notes) to articulate the key messages, and the distribution strategy to reach the intended audiences. The communication strategy should take advantage of existing municipal communication channels where possible. Option Program -prepare Economic Impact reports on selected sports events to reinforce the benefits of sport tourism to the community. Consideration should be given to CSTA STEAM (Sport Tourism Economic Assessment Model) which is now widely used by municipalities to measure the economic impact ofsport tourism events. Kitchener -Waterloo Sport Tourism Strategy 71 11.0 Governance and Leadership 11.1 Organization Mandate and Scope The functions and activities required to undertake the core and optional programs outlined in the preceding section can be broadly categorized into three areas: Organizational Capacity • Providing event planning tools (e.g. facilities database, event planner kits, event organizers workshops) • Event application and hosting administration (e.g. facility rental forms, grant applications, facility calendar and specifications) • Administration of financial assistance programs Marketing and Communications • General promotion of the municipality as a sports event destination (e.g. web site, facilities database, event planner kits, membership in CSTA) • Providing a forum for stakeholder participation and input (e.g. tourism sector, community groups) • Promoting a greater understanding of the potential role of sport tourism Event Acquisition and Event Support • Identification of event bid opportunities • Assisting local groups on bid development and event organization • Preparation and submission of bid documents • Facilitating volunteer recruitment • Providing promotional support for event (e.g. attendance builder programs, visitor guides, maps, pins, banners) • Ongoing liaison with sports federations and event organizers 11.2 Organization Options As noted in our review of Best Practices, sport tourism organizations take on many forms, although the most common would be as an independent, not-for-profit corporation (more prevalent in the United States) or as a department within a municipally controlled or municipally funded parks and recreation, economic development or tourism agency (the typical approach in Canada). Kitchener -Waterloo Sport Tourism Strategy 72 The Consultants considered a number of organizational options for the Twin Cities sport tourism initiatives. Separate and autonomous strategies and organizations can be considered one endpoint on a continuum of organizational options, while a single, fully integrated strategy executed by one organization can be considered the other end of the range. Along this continuum are a number of organizational options. On the following pages we have outlined the advantages and disadvantages of a range of organizational models: Option 1: Completely separate initiatives and organizations Option 2: Common Organizational Capacity, Marketing and Communications; separate Event Acquisition and Event Support Option 3: Fully integrated strategy executed by a joint working group of municipal staff Option 4: Fully integrated strategy executed by an arms length sport tourism commission Option 5: Fully integrated strategy executed by an arms length regional Destination Marketing Organization Within each model we have also outlined a range of options for funding and staffing. Option 1: Maintain completely separate organizations Description Each municipality would pursue sport tourism events through separate and autonomous initiatives, operated within Recreation and Leisure Services for the City of Waterloo and Community Services for the City of Kitchener. Advantages Easiest and fastest to implement Resource allocation can be tailored to the objectives and strategies of each municipality Potential to cooperate on an ad hoc basis Disadvantages Duplication of efforts and costs Does not capitalize on Twin Cities strengths More difficult to coordinate joint bids Less able to attract qualified sport tourism personnel Staffing and Organizational Capacity initiatives can be undertaken by contract staff, consultants or new municipal employees Resource Marketing and Communications initiatives can be undertaken through existing Options corporate communications channels Event acquisition and operations initiatives can be undertaken by existing staff, new municipal employees or contract staff assigned to specific bids or events. By far the easiest approach, in terms of administration and governance, is for each municipality to continue its pursuit of sport tourism events separately, with collaborative efforts undertaken on an ad hoc basis. Sport tourism initiatives would continue to be undertaken by the municipal Kitchener -Waterloo Sport Tourism Strategy 73 departments responsible for sports facility management. This approach avoids the difficulties associated with establishing joint governance structures and service delivery strategies. It also allows each municipality to invest the level of resources most appropriate to its corporate strategy and objectives. Under this approach, for example, the City of Waterloo could limit its web-based initiatives to some minor modifications to the organization of its municipal web site to make it more user-friendly for tournament organizers, while the City of Kitchener could develop a dedicated sport tourism website complete with event organizer tool kits, manuals, best practices, etc. This option also avoids the challenges that may occur from conflicting corporate priorities such as the relative importance of Community versus Economic benefits. It minimizes the potential for conflict from differences in organizational cultures, and obviates the need to assess the relative costs and benefits received by each municipality. This approach, while the easiest and fastest to implement, ignores that fact that for many stakeholders, the municipal boundaries are irrelevant. Many local sports groups are organized on a Twin Cities basis and many provincial and national sports governing bodies have no restrictions on multi-city bids. This option has considerable duplication of effort, and fails to capitalize on the principal strengths of the Twin Cities, including its range of sports facilities and local sports organizations, and its large population base. Kitchener -Waterloo Sport Tourism Strategy 74 Option 2: Integrated organizational capacity, marketing and communications initiatives. Separate event acquisition and event support initiatives Description Common organizational programs and initiatives -event organizers tool box, on-line facility inventory, sports organization data base. Common destination marketing (web site, calendar of events) and stakeholder communication programs. Event acquisition and event support would be undertaken independently by each municipality. Advantages Capitalizes on Twin Cities strengths Recognizes that municipal boundaries are not relevant to many stakeholders and sports governing bodies Less duplication of efforts and resources Resource allocation can be tailored to the objectives and strategies of each municipality Can evolve to a more integrated organizational model Responsibilities can be readily devolved to the municipalities or to another organization (e.g. regional DMO) Disadvantages Some duplication of efforts and costs More time required to establish joint service delivery strategy and agreements Twin City bid opportunities may not be fully exploited. Less able to attract qualified sport tourism personnel Greater burden on existing municipal resources for supervision of new initiatives, and for ongoing event pursuit and bid preparation. Staffing and Resource Options Organizational Capacity initiatives can be undertaken by contract staff, consultants or new municipal employees Marketing and Communications initiatives can be undertaken through existing corporate communications channels Event acquisition and operations initiatives can be undertaken by existing staff, new municipal employees or contract staff assigned to specific bids or events. This option capitalizes on the Twin Cities facility inventory and market size by positioning Kitchener- Waterloo as one sport tourism destination. It also reduces the duplication of efforts that would occur if both cities pursued their own Organizational Capacity, Marketing and Communication initiatives. Under this option there would be a single sport tourism website with an integrated facilities inventory and event organizers toolbox. The event database would be built and managed for the benefit of both cities, as would the marketing and communication strategies. These initiatives would be jointly managed and funded by the municipalities. Each municipality would maintain effective working relationships with the local sports groups and the sports governing bodies critical to its sport tourism objectives. Each municipality would decide what event opportunities to pursue, and the level of staff and financial support appropriate for bid preparation and event hosting. Under this option, sport tourism bids and event hosting support would be Kitchener -Waterloo Sport Tourism Strategy 75 developed and implemented through existing municipal departments involved in the management of sports facilities. Additional resources would be required at the departmental level to fully implement the recommendations contained in this strategy. As the event acquisition and event hosting recommendations are scalable, each municipality can determine the level of resources it wishes to allocate to these functions. Joint bids would be developed through ad hoc working groups. While this option does require joint service agreements for development of the organizational "bone structure" such as the web site and event database, these tasks can be well defined, have measurable outcomes and can be costed in advance. The event acquisition initiatives, which are more difficult to measure, would be implemented and funded by each municipality, avoiding the difficulties of cost allocation and benefit measurement for these more intangible and unpredictable activities. Option 3: Fully integrated strategy executed by joint municipal working group Description The municipalities would pursue sport tourism events through one working group that develops and implements initiatives that support sport tourism across the Twin Cities, for events that are focused on one or both municipalities. This entity would be attached to one of the existing municipal departments responsible for sports and recreation, and a joint working group would be established to provide leadership, funding and administrative support. Advantages Capitalizes on Twin Cities strengths Recognizes that municipal boundaries are not relevant to many stakeholders and sports governing bodies Less duplication of efforts and resources Responsibility (and resources) can be devolved at a later date to a third party organization (e.g. Sport tourism Commission or Regional DMO) Disadvantages More difficult and time consuming to establish and manage Resource allocation must be agreed on by both municipalities, which may have different objectives for sport tourism Devolution of responsibilities back to the municipalities may have adverse market consequences. Benefits and costs may not be fully aligned at all times Perception of bias if one municipality provides office space, administrative support and day to day supervision. Greater burden on existing municipal resources for supervision of new initiatives. Staffing and Resource Options Organizational Capacity initiatives can be undertaken by contract staff, consultants or new municipal employees Marketing and Communications initiatives can be undertaken through existing corporate communications channels Event acquisition and operations initiatives can be undertaken by existing staff assigned to new sport tourism position or new municipal employees. Event bid and event operations support can be supplemented through contract staff assigned to specific bids or events. Kitchener -Waterloo Sport Tourism Strategy 76 Option 3 requires a higher level of collaboration and is therefore more time consuming and complex to develop and implement. This option does position the Twin Cities as a single sport tourism destination, taking full advantage of its facility inventory and market size. It eliminates the duplication of efforts and resources, allowing more effort to be focused on event acquisition. However, as resources are limited, an integrated event acquisition strategy must establish priorities and may not be able to support all of the opportunities available. Should one municipality wish to independently pursue a sport tourism opportunity that did not "make the cut", it would do so using other staff resources. This could be more difficult than under current conditions, because the sport tourism expertise and capacity would be centralized in the joint working group. Implicit in all of the integrated organization options is the understanding that costs and benefits may not be fully aligned in any given year. Under this option the staff assigned to the joint working group would, in all likelihood, by supported by one of the existing municipal departments involved in sports facility management and sport tourism events. Given its facility inventory and sport tourism history, the City of Kitchener Community Services department would be the logical group to provide accommodation, administration and supervision for the joint working group. This may create a perception of bias amongst stakeholder groups. Kitchener -Waterloo Sport Tourism Strategy 77 Option 4: Fully integrated sport tourism commission established as an arms length corporation Description The municipalities would pursue sport tourism events through one entity that develops and implements initiatives that support sport tourism across the Twin Cities, for events that are focused on one or both municipalities. This entity would be established as an arms length Corporation similar to the new Regional Destination Marketing Organization, with an appointed Board of Directors. The Corporation would be funded by the municipalities and through its own revenue generating activities. Advantages Capitalizes on Twin Cities strengths Recognizes that municipal boundaries are not relevant to many stakeholders and sports governing bodies Less duplication of efforts and resources Responsibility (and resources) can be devolved to a third party organization (e.g. Regional DMO) without adverse market consequences. Reduces perception of bias if organization is directed by and accountable to an appointed Board of Directors Better able to attract qualified sport tourism personnel Disadvantages Less control by the municipal funding partners Devolution of responsibilities back to the municipalities may have adverse market consequences. Cost to establish and manage corporate entity Time and costs associated with recruiting and maintaining Board of Directors More difficult and time consuming to establish Resource allocation must be agreed on by both municipalities, which may have different objectives for sport tourism Benefits and costs may not be fully aligned at all times Staffing and Resource Options Organizational Capacity initiatives can be undertaken by contract staff, consultants or employees of the new organization Marketing and Communications initiatives can be undertaken through or supported by existing corporate communications channels Municipalities can continue to provide housing, IT, legal, human resource, procurement, accounting and other administrative support on an in-kind basis. In terms of functional responsibilities, Option 3 and Option 4 are very similar. The principal difference lies in the creation of an arms length sport tourism commission under the supervision of an appointed Board of Directors. While the level of control by the municipalities would be reduced under this option, so would the perception of bias inherent in the joint working group. As with all the integrated options, this approach would make it more challenging for a municipality to independently pursue a sport tourism opportunity, as the sport tourism capacity and expertise are centralized in a new organization. And while a sport tourism commission could be integrated at a later date into a regional destination marketing organization, devolution of its responsibilities back to the municipalities could have an adverse impact on future sport tourism efforts. Kitchener -Waterloo Sport Tourism Strategy 78 Option 5: Sport tourism responsibilities delegated to Regional Destination Marketing Organization Description The responsibility for sport tourism would be assigned to the newly-formed Regional Destination Marketing Organization. The DMO would be responsible for promoting the region as a sport tourism destination, and for identifying potential bid or event hosting opportunities. Municipalities would supplement bid development and event hosting support through existing departments. Advantages Economies of scale on web site, facility inventory, calendar of events, attendance builder programs, administration Organization model in place, with core funding secured from Region and local municipalities Established model (Tourism London, Tourism Hamilton) Capitalizes on Twin Cities strengths Recognizes that municipal boundaries are not relevant to many stakeholders and sports governing bodies Less duplication of efforts and resources Sport tourism activities could be spun off to a separate organization in the future without adverse market consequences. Disadvantages DMO organized on a regional basis with all municipalities and townships participating in the funding and governance Devolution of responsibilities back to the municipalities could have adverse market consequences Would have to re-visit the approved business plan and funding model of the DMO in order to broaden its mandate. Organization has broad tourism marketing focus, making it more difficult to ensure sport tourism receives adequate attention No funding in current business plan for sport tourism May be more difficult to find qualified senior management if focus of organization becomes too broad. Benefits and costs may not be fully aligned at all times Staffing and Resource Options Organizational Capacity initiatives can be undertaken by contract staff, consultants or new DMO employees Marketing and Communications initiatives can be supported by existing municipal or DMO communications channels Municipalities can continue to provide housing, IT, legal, human resource, procurement, accounting and other administrative support on an in-kind basis. Event acquisition and operations initiatives can be undertaken by staff assigned to new sport tourism positions, and can be supplemented by other DMO employees or contract staff assigned to specific bids or events. This model is common in North America, and is the approach used by the cities of London, Hamilton and Saskatoon, amongst others. It recognizes the importance of creating market awareness and a positive image in attracting Attendees, and that many of the initiatives in our sport tourism strategy require DMO resources and leadership. Kitchener -Waterloo Sport Tourism Strategy 79 There are three principal disadvantages of this approach: • The newly formed Regional DMO is an initiative of the Region and all local municipalities. Its funding and governance model would have to be amended and this sport tourism strategy would have to be broadened to a regional focus. • The current DMO budget does not provide any funds for sport tourism • As sport tourism opportunities are concentrated in the larger municipalities, it may be difficult to achieve support from the broader group of stakeholders involved in the Regional DMO. • The implementation timetable would likely be longer. While this Option may have merit in the future, we do not believe it warrants further consideration at this time, given the constraints outlined above. 11.4 Preserving Municipal Autonomy Regardless of the organizational model, sport tourism initiatives are typically pursued on a Business Case basis. Mounting a successful event bid requires the active collaboration of a number of stakeholders, including community groups, volunteers and municipal governments. Sport tourism organizations typically have no authority over any of these stakeholders, and their active cooperation must be secured by presenting a sound and compelling business case. We envision this to be the basic operating approach for any sport tourism organization created for the Twin Cities. The municipalities will continue to control their respective sports and recreation venues, and will decide independently on any municipal resources required to secure event bids and stage major events. In all of the models proposed, either municipality could, for example, independently pursue a sport tourism opportunity that had been "passed over" by the sport tourism organization. This model is not without precedent. While municipal sport tourism agencies typically take the lead role in managing most event bids, they are generally relegated to a supporting role when a municipality decides to pursue a major multi-sport event. 11.4 Stakeholder Participation The principal stakeholders in a sport tourism strategy include: • Local sports organizations that may be called upon to provide organizational and financial support for event operations, to give up scheduled use of municipal sports facilities, and underwrite financial risk; Kitchener -Waterloo Sport Tourism Strategy 80 • Facility owners, including municipal governments, education institutions and private sector owners; • Business sectors that may benefit from increased visitation to the community, such as accommodation, attractions, foodservice and retail; • The business community at large, that may be expected to participate through advertising, sponsorships or the provision of in-kind services; • The community at large, that will be affected by both the benefits and costs associated with a sport tourism strategy; All of these groups have important roles to play in the successful execution of a sport tourism strategy. Regardless of what organizational model is followed, the Consultants believe that the active involvement of stakeholders is desirable. Based on our review of other sport tourism organizations, stakeholder participation is typically provided by an Advisory Committee or Board of Directors of 10 to 15 members representing the key stakeholder groups outlined above. 11.5 Evolution of the Organization As the organization matures and successfully executes its original mandate, it creates opportunities to evolve in three major areas: • Scope of services provided • Target markets pursued • Organizational autonomy 11.5.1 Scope of Services In our review of sport tourism organizations in other jurisdictions, we noted that many of the more mature organizations had developed a broader scope of functions designed to enhance their marketing efforts, to enhance the success of events hosted in their municipality, or to generate additional revenues to support their sport tourism strategies. Examples of these expanded functions include: • On-line volunteer recruitment and database • On-line event registration • On-line ticketing • Housing services • Event production and promotion Kitchener -Waterloo Sport Tourism Strategy 81 11.5.2 Target Markets Our research also revealed that a small but growing number of sport tourism organizations have expanded their original focus to include cultural, entertainment and other events. This trend has been fuelled in large part by the emergence over the past five years of "ambulatory" media driven events such as the Juno Awards, Antiques Roadshow and Canadian Idol television shows. Edmonton Events International, Events Halifax and Toronto International are a few of the Canadian organizations that have broadened their focus beyond sports. There are a number of reasons why sport tourism organizations, and not Destination Marketing Organizations, have focused on this market: 1. Event acquisition is often bid-oriented and requires similar competencies 2. Events often require municipal support and a large volunteer base 3. Event may generate more community benefits than direct economic benefits 11.5.3 Organizational Autonomy The organization can also evolve in terms of the level of autonomy over decision making and resource allocation. This often occurs when the stakeholders for whom the organization was created demand a greater role in establishing the strategic direction of the entity, including resource allocation and decision making. Thus we see the tourism marketing division of Industry Canada evolve into the Canadian Tourism Commission. This shift can also accompany a change in the funding model -the Board composition of Tourism Toronto has changed over the past decade to reflect the diminished financial support received from the City of Toronto. For the Twin Cities, the models have been presented so as to form a logical pattern of organizational evolution. From the status quo where sport tourism activities are independently pursued by municipal staff with no formal oversight by other stakeholders, the organizational models devolve an increasing level of responsibility for establishing strategic direction and resource allocation, first to a joint working group of municipal staff and elected officials, then to an Advisory Committee and ultimately to an appointed Board of Directors. The two municipalities would continue to exercise considerable influence over the organization in all of these models, .given their role as the principal funding partners. 11.6 The Events Halifax Model There is one other organizational model which may, under specific circumstances, be relevant to one or both municipalities. Trade Centre Limited, which operates the Halifax Metro Centre, World Trade and Convention Centre, Exhibition Park and World Trade Centre Atlantic Canada, established Events Halifax in 1998. This organization is dedicated to the identification and pursuit of major cultural and sporting events, both national and international, which could be attracted to Halifax. As the major owner and operator of sports and public assembly venues in Halifax, this was Kitchener -Waterloo Sport Tourism Strategy 82 a logical strategy for the corporation. Events Halifax goes well beyond most other sports or event tourism organizations in terms of venture financing and event operations. Through the parent company Trade Centre Limited, considerable resources can be focused on event acquisition. This model could be implemented quite readily by the City of Kitchener, which already holds its principal event venue, the Kitchener Memorial Auditorium Complex and its festival and event operations resources, within its Enterprise Division. By transferring the Peter Hallman Ball Yards to the Enterprise Division, the City of Kitchener could consolidate the vast majority of its sport tourism and special event assets and resources within a single, entrepreneurial organization. Should the City of Waterloo elect to maintain the status quo with respect to sport tourism, the City of Kitchener should give serious consideration to the Events Halifax business model. This model could also be considered for the City of Waterloo if it elected to change the use profile of the Waterloo Memorial Recreation Complex and/or RIM Park, to focus on more outside events and tournaments. However, without this change of focus, this entrepreneurial model would not be suitable for the City of Waterloo. Establishing this type of organization under joint municipal stewardship would be far more complex, given the ownership of the assets and the different user profiles. However, if any of the major new sports facilities identified in this strategy were to be pursued under a joint municipal model, the Events Halifax organizational model may have greater relevance. 12.0 Resource Requirements This sport tourism strategy has been developed to guide the Twin Cities over the next decade, with the specific recommendations phased over the first three years. Our strategy contains both Core Programs that we believe are essential if the municipalities are to compete more effectively in the sport tourism market, as well as Optional Programs that would enhance the competitive position but are not considered essential in the short to medium term. Some of these optional programs include grants for event marketing and operations, which cannot be quantified as they are contingent on a successful event bid. 12.1 Staff Requirements The organizational model chosen to implement the sport tourism strategy will have an obvious impact on staffing needs. In the first two options, each municipality undertakes certain initiatives independently, resulting in considerable duplication of effort. In Options 3 and 4 this duplication is largely eliminated. While Option 5 provides for further economies of scale by integrating sport tourism activities into a Regional Destination Marketing Organization, we do not consider this a viable alternative at the present time. Kitchener -Waterloo Sport Tourism Strategy 83 Based on our review of other sport tourism organizations and on the recommended scope of services to be provided, we believe the Organizational Capacity, Marketing and Communications initiatives outlined in this Strategy will require one full time manager and one part time administrative position to fully implement. The Event Acquisition and Event Support recommendations are scalable, allowing the municipalities to establish (either jointly or independently) the appropriate level of resources to be attached to these initiatives. 12.2 Financial Requirements The staffing budget required for the Organizational Capacity, Marketing and Communications initiatives has been estimated at $120,000 for recurring staff (one manager at $80,000 per annum, one half-time administrator at $15,000 per annum, plus burden at 30%). Based on our review of staffing in sport tourism organizations in comparable municipalities, and our assessment of the potential opportunities available for both municipalities, we believe that one full time management position will be required for Event Acquisition and Event Support initiatives. In addition to staffing, start-up and ongoing costs, funds should be available for Bid Preparation, Event Development, Event Marketing and Event Management. It is not possible to estimate the financial implications of bidding for or hosting a major national or international event. These must be considered on a "Business Case" basis, identifying all of the anticipated costs and benefits, along with an assessment of the competitive environment and risks. The financial requirements to implement this sport tourism strategy under Options 1 through 4 are summarized in the following tables. As we do not believe that Option 5 is viable at this time, we have not attempted to forecast the financial resources required for this Option. The significant assumptions underlying these projections are summarized in the Notes immediately following the tables. Both municipalities are currently providing staff resources and other financial support to the acquisition and management of sport tourism events. The budget figures provided herein do not take into consideration any savings or efficiencies that could result from the re-tasking of existing municipal staff and financial resources. Kitchener -Waterloo Sport Tourism Strategy 84 N C 0 C '- ~' 0 0 0 _ ~ ,v ~= C C y L ~ O O O O O , 033 ~ >~ ~ ~ O O O O ~ ~ ~ ~ y > o b~} f~} N ~ ~ .~oa ~ V C ~~ ~, •- ~ ~ L ~ >~ U ° ° O ° ° ° ° ° p W,_ o ° ° o o o o o o o o ~ = o O O oo ri ~ ~ N ('~ c~ N X 00 +~~+ C ~ i ~ ff} {f} b} Ef} 6~} Ef} ~ {f} N ff} L ~ ~ ~ ~ ~ i~~ N N O O O 0 O 0 O O C N U °° ° 0 0 ~ N ~ ~ ~ ~_ ~ ~ ~ ~ ~ 0°0 ,~~~W >, ~~~~ U OV_ ca °o ° ° O O O O O O O ° ° ° ° °o ~ o ~ o o O o O o O o O 0 O 0 0 0 o ~ N ~ 3 O N ~ ~ ~-} ~ b} c'~ c~} c'~ 6~ N c~} ~ b~ N i~ ° N b} ° ~ ~-} N (~ ~- ,~ 0 ~ ~ N N }' ~ '- U o ~~ o c~ ~ o 0 ~ ~ ~~ *~ ~ ~ c ~~ c~ a~ 0 0 ° 0 ° 0 0 0 0 0 ° ° ° ° °o c~N ~ ~ ° O o _ o 0 _ o 0 0 ~ 0 0 0 0 0 0 0 0 o o 0 ~ 0 0 ~, ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ r ~ ~ b} ~} b} ~} ~ b} ~} N 6~} ~ O Q 0 ,_ ~o U OV ~, ~ ~ m a ~ C~ ~ N a~ N ~ N X c > ~ ~ ~ c O ~ ~ ~ }' ~ ~ U 0 ~ L ~ N ~ N m ~ ~ O ~ ~ - ~ +~ N ~ O O N N L O ~ ~, N - C O ~ N ~ N +~ ~ p~ N N ~ N ~ ~ ~ ~ ~ ~ ~ a..i ~~ O 0 ~ W '~ ~ W ~ L L N - N ~ ° ~ o ~ N ~ ~ o ~ ~ X 0 oZ 0 N 0 N 0 U ~ N }' ui ~ ~ V ~ ~ N ~ ~ >~ N ~~, N 0 ~~ 0 U 0 U ~ ~ ~ ~ ~ ~ ~ ~ O N ~ ~ ~ ~ (~ N (~ Q C ~ ~ ~ ~ > 'j p 0 0 0 O C C ~ (n ~ > (n U ~ ~ Qz Qz Q~ Q Q ~ c~ a--+ L Q ~ ~ 0 NJ ~- 0 i N 3 ~ i ~ ~' a ~ `~ 3 ~ a~ o ~ ~ ~= °o ° ° 0 0 0 0 0 0 0 ° ° ° ° °o °o a~~ V o 0 0 0 0 0 ° ° o o i Z ° 0 0 0 0 0 0 0 O ~ ~ ~ ~'y ~ b~ if} ~ c~} ~ ~ ~ ~ ~ N N •+ ~ {f} bg {f} ~ ~ i ~' W ~ 3 ~ ~ ,~ p V .. N ~ ~ y ~ ~' Y '~ L ~ 0 0 0 f+ ~ L ~ Ovv / ~ ' ~ I V 0 L ~ '. - L ~0 ~.+ 3 ~_ ~ c~ o ~~~ V °o 0 o o o 0 o 0 0 0 0 0 0 0 °o °o °o o °o o ~~~ _ o o o o o 0 0 ° ° ° ~ ° ° ~~ N ~ ~ c~ c~ N ~ N ~ ~ a 0 o 0 ~ C L v + ...a M ~ ~ Y ~ ~ ,0 v 0 ~ ~ Q~ Ow V N ~ ~ m N ~ C~ ~ N N N o N ~ X N ~ ~ ~ > ~ ~= ~ N N N 0 ~ ~ ~ ~' U 'L O ~ N ~ > N M W O W ~ ~ ~ Al ^C W O (n (n O ~ a"i ^' W ~ ~ ~ ~ ~ O ~ [ O ~ N ~ ~ o ~ L L 0 oZ 0 0 0 U ~ o ~ o ° ~ c~ .~ ~ U ° ~ n n ~ Z }' N o ~ U ~ S L N >,,~ N ~ N0 ~~ O U 0 U ~ ~ C _ ~ ~ ~ ~ ~ ~ ~ 0 N ~ ~ ~ ~ (~ N Q c~ c c~ ~ a~ ~ c~ ~ ~ o > c~ ~`~ ~ >o 3 ~ oo 3 ~ oo ~ ~ ~ ~ ~ ~ u~ ~ ~ c~ U ~ ~ Qz Qz Q~ Q Q ~ c~ a--+ L rr~ VJ 12.3 SignificantAssumptions and Notes to the Financial Projections No provision has been made for inflation, or for occupancy costs, information technology, human resource, legal or accounting services. We have assumed that these services will be provided on an in-kind basis and be covered under a services agreement by the municipalities. Note 1: Under all four Options we estimated that the staff required to implement the Organizational Capacity, Marketing and Communications recommendations will be the equivalent of one manager and one half-time administrative support position. As these initiatives are relatively fixed in scope, both municipalities would incur similar costs if these initiatives were pursued independently as in Option 1. In Options 2 - 4 this duplication would be eliminated. Note 2: Advisory Committee or Board expenses include the cost of meetings and presentations. Under Options 1 and 2 these costs would be duplicated to a large extent. Under Option 4, these costs would be higher as there are more frequent meetings, as well as audit and legal costs. Note 3: Operating and marketing grants for smaller sports events are typically in the range of $1,000 to $10,000 per event. Operating grants may be in the form of direct financial assistance, fee waivers or in-kind services. Marketing grants typically range from $5,000 to $10,000. Assuming five operating grants of $5,000 each and three marketing grants of $7,500 each, a grant budget of approximately $50,000 would allow the municipalities to support up to eight tournaments annually. In Options 1 and 2 this has been allocated 60% to the City of Kitchener and 40% to the City of Waterloo. Note 4: Under all four Options we have assumed that the aggregate effort assigned to pursue new sports tournament opportunities for both municipalities (including events for each municipality on a stand alone basis and joint-city bids) will be the equivalent of one full time employee, staffed at a supervisory level with an equivalent annual salary of $50,000 plus burden. Under Options 1 and 2 we have arbitrarily allocated 60% of this cost to the City of Kitchener and the balance to the City of Waterloo, recognizing that the City of Kitchener will, in any given year, likely have more tournament hosting opportunities. Other Event Pursuit and Bid Preparation Costs are budgeted at $10,000 per year and include printing, research and similar costs. In Options 1 and 2 these costs have been allocated 60% to the City of Kitchener and 40% to the City of Waterloo. No provision has been made for the supervisory time provided by existing municipal staff under Option 1. Note 5: Under all options we have assumed that communications initiatives and support (e.g. website, brochures, production of manuals etc.} could be provided by one or both of the municipalities. To more accurately illustrate the cost of implementing the sport tourism strategy, we have assigned a dollar value to these services for each option. Kitchener -Waterloo Sport Tourism Strategy 87 12.4 Resource Requirements -Summary The level of duplication in Option 1 suggests that this approach should only be considered if the two municipalities are so divergent in their objectives and corporate culture than any collaboration would be impractical. As there are numerous successful examples of joint initiatives between the cities, this Option does not appear to warrant further consideration. The remaining Options have a similar cost structure in terms of direct attributable costs. Where they differ is in the indirect or non-attributed costs associated with each Option. Under Option 2, Event Pursuit and Bid Preparation would be handled by each municipality through their own resources. While we have assumed a certain level of incremental staff to manage these processes, the actual level of resources assigned to these tasks could be significantly lower should a decision be made by either municipality not to significantly increase its efforts in pursuing sport tourism opportunities. In Options 2 and 3 the efforts of the staff assigned to sport tourism initiatives would likely be supervised by senior staff from one of the municipalities, and no provision has been made for this cost. In Option 4 the senior executive of the organization would be accountable to the Board of Directors. While senior staff from each municipality would continue to be involved in an advisory or technical capacity under Option 4, the time spent on supervising day to day activities would be largely eliminated. 13.0 Implementation Plan 13.1 Timing This Strategy is intended to provide a framework for sport tourism over the next decade. The recommendations contained within this Strategy should be phased in during the next three years, and a comprehensive review of the strategy should be undertaken by the end of year four. In particular, the organizational model selected should be reviewed to determine if it is possible to integrate sport tourism activities with other municipal or regional tourism marketing initiatives. In Canada, sport tourism initiatives are most commonly delivered by a municipal department (typically Parks & Recreation, Enterprise, or Economic Development) or through a Destination Marketing Organization. Clearly, the relationship of Kitchener and Waterloo is unique, and the organizational model forsporttourism must reflect this relationship. While the DMO model has merit, it must be recognized that the new regional tourism marketing organization is in its infancy and, in our view, is not capable of managing a sport tourism program at this time. It may be possible to integrate sport tourism into this regional DMO in the medium to long term, but it should be recognized that the new DMO has a regional mandate, and is funded by the Kitchener -Waterloo Sport Tourism Strategy 88 Regional Municipality, the three cities and the townships. Integrating a "Twin Cities" organization into such a model may be difficult Therefore, the Consultants believe the sport tourism strategy would be most effective if directed by anew, dedicated organization focused exclusively on sport tourism i.e. Option 4. The day to day operation of the organization would be assigned to dedicated staff, funded on acost-sharing basis by the municipalities. Strategic direction and policy formation would be the responsibility of an appointed Board of Directors, structured as follows: • One representative from each municipal council • The CAO or a designate from each municipality • Four representatives from local sports organizations • Two representatives from the educational sector, to include at least one representative from either Wilfred Laurier University or the University of Waterloo • Four representatives from the business community, to include at least one accommodation, one attraction and one media • One citizen representative from each municipality for a total of 16 members. In addition to the Board members, consideration should be given to having selected municipal employees, drawn from the parks and recreation, community services, or enterprise departments, to provide technical support to the Board and staff. While this organizational model is, in our view, the most suitable in the medium to long term, a transitional or staged approach to the establishment of an arms length sport tourism organization should be adopted. In reaching this conclusion, consideration was given to the following: • The City of Waterloo is currently conducting a Recreation and Leisure Service Policy Review, addressing Facility Allocation Policy, Pricing Policy, Community Liaison Policy, Community Cash Grant Policy and Paymentl Fee Assistance Policy. • The City of Waterloo has recently commenced work on a new Recreation and Leisure Services Master Plan. • The City of Kitchener and the City of Waterloo are both reviewing their Community I nvestment Strategy Given the significant level of policy review underway, the Consultants believe it would be prudent to defer the creation of a new organization until the policy framework had been finalized. We also recognize that the Twin Cities, like all municipalities, face considerable budget pressures to fund municipal services and infrastructure. Therefore, we have established a transitional strategy which highlights those operational initiatives that, in our view, will have the most immediate impact and Kitchener -Waterloo Sport Tourism Strategy 89 highest return. These elements of this sport tourism strategy can move forward immediately, are scaleable in terms of the resources that can be allocated, and can be implemented while major policy reviews are underway. Accordingly, we recommend the following organizational development sequence and implementation plan: Year One Organizational Model: Option Two -Integrated organizational capacity, marketing and communications initiatives. Separate event acquisition and event support initiatives • Establish agreement on municipal cost sharing and support • Retain or second the required staff • Develop communications strategy • Establish Sport Tourism Terms of Reference, Mandate and Advisory Committee, and recruit members • Develop event organizers "Tool Kit" • Develop attendance builder program for existing events • Complete events data base and establish Prospects List • Canvass local sports organizations and Advisory Committee to develop Top Prospects list • Develop guidelines for Event Development and Event Marketing grants • Develop packaging strategy with local attractions, hotels, retailers and events Year Two Organizational Model: Option Two -Integrated organizational capacity, marketing and communications initiatives. Separate event acquisition and event support initiatives • Implement Event Marketing and Operations grant program • Develop cooperative marketing programs and packages to enhance economic impact of selected events • Launch Sport tourism Web-site (basic tourism information, facility and grant applications etc.) • Active, ongoing solicitation of new events by both municipalities • Marketplace scan to identify opportunities for new Created Events • Review of organizational effectiveness • Development of Business Case, Business Strategy and Implementation Framework for integrated strategy Kitchener -Waterloo Sport Tourism Strategy 90 Year Three Organizational Model: Option Three -Fully integrated strategy executed by joint municipal working group • Prepare business case for new Created Events • Web site enhancements (on-line best practices, event organizers handbook, templates) Year Four Organizational Model: Option Three -Fully integrated strategy executed by joint municipal working group • Review of organizational effectiveness • Development of Business Case, Business Strategy and Implementation Framework for integrated organization • Develop Sport Tourism Commission Terms of Reference, Mandate and Board structure, and recruit members • Prepare articles of incorporation and by-laws Year Five Organizational Model: Option Three -Fully integrated sport tourism commission established as an arms length corporation Summary Sport tourism has become "big business" throughout North America. As the health, community and economic benefits that can be derived from sport tourism become more widely recognized, municipalities are adopting pro active and structured approaches to securing their share of this growing market. While the role of volunteers and community groups will always be critical in a successful sport tourism strategy, the ad hoc approach that characterized the pursuit and management of sport tourism events in the past can no longer guarantee a competitive position in the marketplace. Building on the best practices of successful municipalities across Canada and the United States, we have identified 17 Core Programs that we believe are essential to the successful pursuit and staging of sport tourism events for the Twin Cities. A further eight Optional Programs should be considered once a solid foundation has been established. There will always be events that are out of reach for the Twin Cities based on available facilities, ancillary infrastructure or community capacity. The development of new sports facilities may address this gap, but the justification for such facilities must come from community needs, not the opportunity to host a major event every ten to twenty years. By building on the considerable Kitchener -Waterloo Sport Tourism Strategy 91 expertise already in place within the community and by targeting events on a "best fit" basis, a structured and pro active sport tourism strategy can be implemented immediately for a relatively modest budget. This investment will help the Twin Cities build on the strong event hosting experience obtained over the past thirty years. 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