ECONOMIC DEVELOPMENT THE HONOURABLE JON HAVELOCK Minister 103 Legislature Building, 427-3162 AMOUNT TO BE VOTED 2000-01 Estimates Gross Gross Gross Comparable Comparable Comparable Gross Dedicated Net 1999-2000 1999-2000 1998-99 Estimates Revenue Estimates Forecast Budget Actual OPERATING EXPENSE and CAPITAL INVESTMENT to be voted 51,236 (339) 50,897 48,927 51,439 35,411 including: OPERATING EXPENSE 51,236 (339) 50,897 48,815 51,439 35,225 CAPITAL INVESTMENT - - - 112-186 115
DEPARTMENT SUMMARY OPERATING EXPENSE and CAPITAL INVESTMENT Gross Gross Gross 2000-01 Estimates Comparable Comparable Comparable Gross Dedicated Net 1999-2000 1999-2000 1998-99 Program Expense Revenue Expense Forecast Budget Actual 1 Ministry Support Services 5,112-5,112 4,824 5,195 3,966 2 Marketing and Business Development 29,189 (339) 28,850 27,102 29,220 20,350 3 Tourism 16,935-16,935 17,001 17,024 11,095 TOTAL VOTED 51,236 (339) 50,897 48,927 51,439 35,411 Valuation Adjustments and Other Provisions - - - - - 199 TOTAL VOTED AND STATUTORY 51,236 (339) 50,897 48,927 51,439 35,610 116
DEPARTMENT SUMMARY - Continued OPERATING EXPENSE Gross Gross Gross 2000-01 Estimates Comparable Comparable Comparable Gross Dedicated Net 1999-2000 1999-2000 1998-99 Program Expense Revenue Expense Forecast Budget Actual 1 Ministry Support Services 5,112-5,112 4,824 5,195 3,966 2 Marketing and Business Development 29,189 (339) 28,850 26,990 29,220 20,164 3 Tourism 16,935-16,935 17,001 17,024 11,095 TOTAL VOTED 51,236 (339) 50,897 48,815 51,439 35,225 Valuation Adjustments and Other Provisions - - - - - 199 TOTAL VOTED AND STATUTORY 51,236 (339) 50,897 48,815 51,439 35,424 CAPITAL INVESTMENT Comparable Comparable Comparable 2000-01 1999-2000 1999-2000 1998-99 Program Estimates Forecast Budget Actual 2 Marketing and Business Development - 112-186 TOTAL VOTED - 112-186 117
PROGRAM 1 - MINISTRY SUPPORT SERVICES OPERATING EXPENSE Gross 2000-01 Estimates Comparable 1999-2000 Forecast Comparable Gross Dedicated Net Gross Dedicated Net 1999-2000 Reference Element Expense Revenue Expense Expense Revenue Expense Budget 1.0.1 Minister's Office 295-295 290-290 380 1.0.2 Deputy Minister's Office 360-360 376-376 347 1.0.3 Finance and Administration 3,571-3,571 3,305-3,305 3,610 1.0.4 Alberta Economic Development Authority Support 303-303 293-293 298 1.0.5 Standing Policy Committee on Economic Sustainability 95-95 87-87 87 1.0.6 Communications 488-488 473-473 473 PROGRAM OPERATING EXPENSE 5,112-5,112 4,824-4,824 5,195 118
PROGRAM 2 - MARKETING AND BUSINESS DEVELOPMENT OPERATING EXPENSE and CAPITAL INVESTMENT Gross 2000-01 Estimates Comparable 1999-2000 Forecast Comparable Gross Dedicated Net Gross Dedicated Net 1999-2000 Reference Element Expense Revenue Expense Expense Revenue Expense Budget 2.1 Policy and Knowledge Management 2.1.1 Policy and Economic Analysis 2,046-2,046 1,943-1,943 1,998 2.1.2 Knowledge and Information Management 3,639 (19) 3,620 2,865-2,865 3,625 Total Sub-program 5,685 (19) 5,666 4,808-4,808 5,623 2.2 Investment and Trade 2.2.1 Operations 278-278 262-262 255 2.2.2 International Trade Representation 6,205-6,205 5,098-5,098 6,099 2.2.3 International Marketing - Operating Expense 6,149-6,149 5,662-5,662 6,055 - Operating Expense funded by Lotteries - - - 388-388 500 - Capital Investment funded by Lotteries - - - 112-112 - 2.2.4 Investment 1,748-1,748 1,765-1,765 1,715 2.2.5 External Relations 681-681 650-650 662 Total Sub-program 15,061-15,061 13,937-13,937 15,286 2.3 Industry and Regional Development 2.3.1 Operations 292-292 282-282 282 2.3.2 Industry Development 4,903-4,903 4,969-4,969 5,160 2.3.3 Regional Development 3,248 (320) 2,928 3,106-3,106 2,869 Total Sub-program 8,443 (320) 8,123 8,357-8,357 8,311 TOTAL PROGRAM 29,189 (339) 28,850 27,102-27,102 29,220 PROGRAM OPERATING EXPENSE 29,189 (339) 28,850 26,990-26,990 29,220 PROGRAM CAPITAL INVESTMENT - - - 112-112 - 119
PROGRAM 3 - TOURISM OPERATING EXPENSE Gross 2000-01 Estimates Comparable 1999-2000 Forecast Comparable Gross Dedicated Net Gross Dedicated Net 1999-2000 Reference Element Expense Revenue Expense Expense Revenue Expense Budget 3.0.1 Travel Alberta Secretariat 1,100-1,100 960-960 1,100 3.0.2 In-Alberta/Regional Marketing Campaign 2,000-2,000 2,000-2,000 2,000 3.0.3 International Marketing Campaign 6,000-6,000 6,700-6,700 6,000 3.0.4 Regional Marketing Network 1,500-1,500 1,500-1,500 1,500 3.0.5 Alberta Image Promotion 1,500-1,500 1,400-1,400 1,500 3.0.6 Research 500-500 395-395 500 3.0.7 Foreign Representatives 700-700 538-538 700 3.0.8 Visitor Support Services 2,811-2,811 2,595-2,595 2,800 3.0.9 Image Bank and Website - - - 300-300 300 3.0.10 Tourism Development Branch 824-824 613-613 624 PROGRAM OPERATING EXPENSE 16,935-16,935 17,001-17,001 17,024 120
MINISTRY BUSINESS PLAN SUMMARY 121
MINISTRY BUSINESS PLAN SUMMARY VISION Economic Development s vision is that Alberta is the best place in the world to live and do business. MISSION The Ministry of Economic Development works closely with the Alberta Economic Development Authority (AEDA), Strategic Tourism Marketing Council, and the Travel Alberta Secretariat. AEDA acts as a high level policy advisory group to the government concerning key economic development and industry competitiveness issues. This unique relationship with the private sector ensures Economic Development s goals are achieved in partnership with business and industry. The Strategic Tourism Marketing Council establishes the strategic tourism marketing plan. The Council is a cooperative effort between government and the private sector to maximize the effectiveness of investment made in increasing tourism within Alberta. The Travel Alberta Secretariat consists of a small group of marketing professionals that provide assistance to the Council and are responsible for implementing and coordinating the strategic marketing plan. The department s mission is to promote Alberta s continuing prosperity. CORE BUSINESSES Strategic Leadership for Economic Development Policy and Planning Market Development and Investment Attraction Tourism Marketing and Development GOALS Alberta has a vibrant and versatile economy. Alberta s businesses, communities and industry sectors are globally competitive. Alberta is a globally competitive tourism destination. MAJOR STRATEGIES Lead interdepartmental and intergovernmental collaboration to address Alberta s economic priorities and the interests of stakeholders. Lead the implementation of a new economic development strategy for Alberta. Provide support to the AEDA and its committees and coordinate the work of the Council of Economic Development Ministers. Assess the drivers of the Alberta Advantage and ensure integrated policies are developed to maintain the Alberta Advantage. Develop and communicate results of long-term trends for the Alberta economy. Further develop and support regional partnerships to address economic development priorities as identified by communities throughout Alberta. Implement the International Marketing Strategy. Implement changes to Alberta s international representation. Provide competitive intelligence, market information and knowledge to support companies accessing marketing opportunities. Promote capabilities, products and services of export ready Alberta businesses in international markets. 122
Promote Alberta as a location of choice for new and expanding business investment. Improve local access to capital by promoting investment into diversified sectors and expanding sources of capital investment. Promote investment into the production of goods that add value to Alberta s resources. Provide information and services that assist the development of small Alberta businesses through innovative means such as The Business Link, the Calgary Business Information Centre, Connectivity 2000, and participating in a business tax review. Attract and grow advanced technology sectors through a cooperative joint venture with the Department of Innovation and Science. Partner and deliver marketing programs that are strongly endorsed by the industry through the Strategic Tourism Marketing Council and Travel Alberta. Deliver valued support services to the tourism industry including visitor information, product and business information, image materials, and tourism research. Address tourism issues such as regulation/policy, access to land, infrastructure, and product enhancement that impacts growth, expansion and marketability. Develop a strategy for mountain region tourism development in Alberta, including the national parks. HIGHLIGHTS FOR 2000-2001 Lead the implementation of a new economic development strategy for Alberta that will result in continued prosperity for Alberta. Implement an International Marketing Strategy to focus department international marketing efforts in targeted geographic regions. Complete changes to Alberta s foreign offices. In conjunction with other public and private sector partners, lead Alberta s presence at the Hanover 2000 World Fair by focusing on technology and innovation to sell and market the province s advantages under its theme The Future Works Here. Coordinate the province s participation in the National Petroleum Show/World Petroleum Conference 2000 in Calgary in June 2000. Implementation of industrial sector strategies to focus department s efforts on targeted value added industry sectors. Complete the integration of the Agri-Food trade policy group into Economic Development activities. Continue to work closely with industry through the Strategic Tourism Marketing Council to address tourism marketing issues and market Alberta as an attractive tourism destination. In conjunction with AEDA, formulate a long-range tourism strategy. Implement a comprehensive performance measurement and program evaluation system to improve accountability. Implement a comprehensive system to improve the management of the Department s information and knowledge. The Ministry s 2000-01 budget is $51 million which includes $17 million for tourism development and marketing, $15 million for investment and trade activities, and $8 million for industry and regional development. 123
GOAL 1: Alberta has a vibrant and versatile economy KEY PERFORMANCE MEASURES Alberta s Gross Domestic Product - GDP values are adjusted for inflation at market prices (constant 1992 dollars) Actual Actual Estimate Target Target Target Target Business Plan 1997 1998 1999 2000 2001 2002 2003 % Growth 8.0 1.8 2.8 4.2 4.0 4.0 4.0 Real GDP ($ billion) 97.2 99.0 101.8 106.1 110.3 114.7 119.3 Employment Growth - The annual average number of Albertans employed. Actual Actual Actual Target Target Target Target Business Plan 1997 1998 1999 2000 2001 2002 2003 % Growth 3.1 3.9 2.8 3.0 2.9 2.9 2.9 Employment (000) 1,457 1,514 1,557 1,604 1,650 1,698 1,747 Net New Jobs (000) 44 57 43 47 46 48 49 Manufacturing and Service Exports - The value of Alberta s international (outside Canada) exports of manufactured goods and services. Actual Actual Estimate Target Target Target Target Business Plan 1997 1998 1999 2000 2001 2002 2003 % Growth 5.8 6.0 11.7 7.0 8.0 8.7 9.0 Exports ($ billion) 13.6 14.5 16.2 17.3 18.7 20.3 22.1 Client and Stakeholder (AEDA) satisfaction with overall department services. Actual Estimate Target Target Target Target Business Plan 1998 1999 2000 2001 2002 2003 AEDA Satisfaction 100% 100% 100% 100% 100% 100% Client Satisfaction 93% 95% 95% 95% 95% 95% GOAL 2: Alberta s businesses, communities and industry sectors are globally competitive. Manufacturing and Service Industry Investment - The value of new capital expenditures on construction, machinery, and equipment in Alberta s manufacturing and service industries. Actual Actual Estimate Target Target Target Target Business Plan 1997 1998 1999 2000 2001 2002 2003 % Growth 37.6 25.1 24.0 4.0 4.0 4.0 4.0 Investment ($ billion) 8.0 10.0 12.4 12.9 13.4 13.9 14.4 124
Agri-food Exports - The value of out-of-country exports of agriculture and food products. Actual Actual Estimate Target Target Target Target Business Plan 1997 1998 1999 2000 2001 2002 2003 Total International 5.1 4.3 3.9 4.2 4.3 4.4 4.5 Agri-food Exports ($ billion) % Growth 8.0 (14.4) (11.0) 8.5 2.0 2.9 2.8 To be top among, or tied with, competitors on elements of the Alberta Advantage. Alberta will be benchmarked with other provinces and/or with selected U.S. states on 16 elements of the Alberta Advantage. Actual Estimate Target Target Target Target Business Plan 1998 1999 2000 2001 2002 2003 Number of elements on which 8 of 16 9 of 16 9 of 16 10 of 16 10 of 16 10 of 16 Alberta is top or tied, relative to competing jurisdictions GOAL 3: Alberta is a globally competitive tourism destination. Tourism Industry Revenue - The annual value of all tourism industry revenues in Alberta. This includes expenditures made in Alberta by visitors from overseas, the United States, other Canadian provinces, and residents of Alberta. Actual Actual Estimate Target Target Target Target Business Plan 1997 1998 1999 2000 2001 2002 2003 Revenue ($ billion) 3.7 4.1 4.2 4.5 4.6 5.0 5.2 % Growth 8.6 9.5 3.0 4.7 5.5 6.3 6.3 Alberta s market share of Canadian international tourism visitors from Europe, Asia and the United States. Actual Estimate Target Target Target Target Business Plan 1998 1999 2000 2001 2002 2003 Europe % 13.5 13.6 13.7 13.8 13.8 13.8 Asia % 15.8 16.0 16.1 16.1 16.2 16.2 United States % 6.6 6.8 6.8 6.9 6.9 7.0 Alberta s share of total Canadian tourism revenue. Actual Estimate Target Target Target Target Business Plan 1998 1999 2000 2001 2002 2003 Alberta/Canada % 14 14 15 16 17 18 125
MINISTRY INCOME STATEMENT BY PROGRAM Comparable Comparable Comparable 2000-01 1999-2000 1999-2000 1998-99 Estimates Forecast Budget Actual REVENUE Internal Government Transfers Contribution from Lottery Fund - 500 500 - Transfers from Government of Canada Various 339 - - - Other Revenue Various 750 750 750 1,222 Ministry Revenue 1,089 1,250 1,250 1,222 EXPENSE Program Ministry Support Services 5,112 4,824 5,195 3,966 Marketing and Business Development 29,189 26,990 29,220 20,164 Tourism 16,935 17,001 17,024 11,095 Department Statutory Valuation Adjustments - - - 199 Ministry Expense 51,236 48,815 51,439 35,424 Gain (Loss) on Disposal of Capital Assets - - - - NET OPERATING RESULT (50,147) (47,565) (50,189) (34,202) 126
DEPARTMENT INCOME STATEMENT Comparable Comparable Comparable 2000-01 1999-2000 1999-2000 1998-99 Estimates Forecast Budget Actual REVENUE Internal Government Transfers Contribution from Lottery Fund - 500 500 - Transfers from Government of Canada Various 339 - - - Other Revenue Various 750 750 750 1,222 Total Revenue 1,089 1,250 1,250 1,222 EXPENSE Program Voted Ministry Support Services 5,112 4,824 5,195 3,966 Marketing and Business Development 29,189 26,990 29,220 20,164 Tourism 16,935 17,001 17,024 11,095 Total Voted Expense 51,236 48,815 51,439 35,225 Statutory Valuation Adjustments and Other Provisions - - - 199 Total Voted and Statutory Expense 51,236 48,815 51,439 35,424 Gain (Loss) on Disposal of Capital Assets - - - - NET OPERATING RESULT (50,147) (47,565) (50,189) (34,202) CHANGE IN CAPITAL ASSETS New Capital Investment - 112-186 Less: Disposal of Capital Assets - - - - Less: Capital Amortization (42) (44) (104) (142) Increase (Decrease) in Capital Assets (42) 68 (104) 44 127
MINISTRY FULL-TIME EQUIVALENT EMPLOYMENT Comparable 2000-01 1999-2000 Estimates Budget Department 205 197 Total Full-Time Equivalent Employment 205 197 128