ARCHIVED - Atlantic Canada Opportunities Agency - Supplementary Tables

Name of Horizontal Initiative: International Business Development Agreement (IBDA)

Name of Lead Department: Atlantic Canada Opportunities Agency (ACOA)

Lead Department Program Activity: Enterprise Development (program sub-activity: International Business Development)

Start Date of the Horizontal Initiative: April 1, 2011

End Date of the Horizontal Initiative: March 31, 2016

Total Federal Funding Allocation (start to end date): $7,000,000

Description of the Horizontal Initiative (including funding agreement): In May 1994, ACOA entered into an agreement (the Canada/Atlantic Provinces Agreement on International Business Development, also known as the IBDA) with the four Atlantic Provinces, Foreign Affairs and International Trade Canada, and Industry Canada to “undertake specific measures to optimize regional coordination on a pan-Atlantic scale and combine limited resources to coordinate trade-related activities.” Since its launch, the agreement has been extended five times (in 1997, 2000, 2005, 2010 and 2011) for a total investment of $34 million. Funding is cost-shared 70/30 by the federal (through ACOA) and provincial governments. The commitment to this agreement, with the increased funding allocation, attests to both the IBDA’s positive results and its significance for the future of the region’s international business development.

The IBDA supports ACOA’s International Business Development (IBD) program sub-activity by coordinating efforts of federal, provincial and private-sector organizations in pursuing international business opportunities. This aligns well with Canada’s Global Commerce Strategy, which aims to strengthen the country’s position in international markets, and reinforces Canada’s image internationally as a preferred business partner and premier investment destination.

More information can be found on the IBDA website.

Shared Outcomes: The primary shared outcomes for the IBDA partners since the agreement’s inception are listed below.

• Increased number of new exporters
• Existing exporters reporting sales to new markets
• Existing exporters reporting increased sales to existing markets

Since 1994, the Agency and its partners have administered over 255 projects involving over 5,000 Atlantic Canadian companies. The IBDA has helped 198 companies to begin exporting, 459 exporters to increase their export sales, and 333 exporters to expand into new markets. In addition to the above outcomes, this new extension will:

• assist exporters in targeting emerging markets such as Brazil, India and China;
• support universities and research establishments to expand their revenues from international commercialization;
• support clients to source new technologies or processes;
• support foreign direct investment; and
• support Canadian direct investment abroad.

Governance Structure: ACOA is the lead organization for this initiative and houses the secretariat responsible for administering the agreement. A management committee, comprising a representative of each partner, is responsible for planning and managing the agreement’s programs and the evaluation of projects.

Partners include:

Federal departments and agencies (70% funding)

• ACOA (lead department)
• Foreign Affairs and International Trade Canada (non-funding partner)
• Industry Canada (non-funding partner)

Provincial governments (30% funding)

• Business New Brunswick
• Nova Scotia Business Inc.
• Newfoundland and Labrador Department of Innovation, Business and Rural Development
• Prince Edward Island Department of Innovation and Advanced Learning

Planning Highlights: The IBDA will continue to build on its accomplishments to date, its extensive experience and lessons learned to contribute further to sustained growth in international business for the Atlantic region. Through its four key elements, the IBDA will:

• expose sectors and companies to export market opportunities and ensure that they are well prepared, with the capability, knowledge and information required to develop international business;
• develop longer term strategies and implementation plans for international business development and undertake research on companies’ needs and best practices;
• assist sectors and companies by obtaining market intelligence and contacts, identifying international market opportunities and applying this knowledge to trade development activities; and
• undertake business activities that support sector export development strategies and contribute to contacts, alliances and ultimately sales for both existing and new exporters.

The agreement is administered by a management committee made up of all seven partners: ACOA, Foreign Affairs and International Trade Canada, Industry Canada and the four Atlantic Provinces. The committee’s responsibilities include approving all projects, establishing procedures and guidelines, monitoring the budget, and reporting results to the appropriate government levels. A secretariat, housed at ACOA’s head office, oversees day-to-day operations.

Funding is sourced from ACOA’s Business Development Program (70%) and the provincial governments (30%), with New Brunswick providing 11%; Nova Scotia, 11%; Newfoundland and Labrador, 5%; and Prince Edward Island, 3%.

Federal Partner: ACOA (lead department)

Federal Partner Program Activity (PA)	Names of Programs for Federal Partner	($ millions)
		Total Allocation (from Start to End Date)	Planned Spending for 2012-13
Enterprise Development	Business Development Program – International Business Development Agreement	7.0	1.4

Expected Results, by Program: In April 2011, the IBDA adopted the results indicators listed below.

• Number of projects undertaken
• Value of contributions or funding extended

Outputs include:

• Number of clients who participated in promotional activities sessions
• Number of research and/or market intelligence reports completed
• Number of clients who participated in learning and skills development activities
• Number of matchmaking meetings
• Percentage of clients satisfied with matchmaking services
• Number of clients who participated in ACOA-assisted international events
• Percentage of clients satisfied with participation in international events
• Volume (average range) of sales reported
• Number of foreign direct investment opportunities identified (FDI leads)

Outcomes include:

• Number of SMEs starting to export
• Number of SMEs exporting to new markets
• Number of SMEs increasing export sales to existing markets
• Number of occasions when clients sourced a more competitive product or service
• Number of SMEs, universities and research establishments expanding their revenues from international commercialization
• Number of clients who identified/adopted new technologies or processes
• Number of foreign direct investment transactions completed (deals closed), where ACOA’s support contributed to the project’s fruition
• Number of Canadian Direct Investments Abroad (CDIA)

Federal Partner: Foreign Affairs and International Trade Canada

Federal Partner Program Activity (PA)	Names of Programs for Federal Partner	($ millions)
		Total Allocation (from Start to End Date)	Planned Spending for 2012-13
International Commerce	N/A	0	0

Expected Results, by Program: Same as ACOA

Federal Partner: Industry Canada

Federal Partner Program Activity (PA)	Names of Programs for Federal Partner	($ millions)
		Total Allocation (from Start to End Date)	Planned Spending for 2012-13
Internal Services	N/A	0	0

Expected Results, by Program: Same as ACOA

Total Allocation For All Federal Partners (from Start to End Date)	Total Planned Spending for All Federal Partners for 2012-13
$7,000,000	$1,400,000

Results to be Achieved by Non-federal Partners: Same as ACOA

Contact Information:
Michel Têtu
Director General, International Business Development
Atlantic Canada Opportunities Agency
P.O. Box 6051
Moncton, New Brunswick
E1C 9J8
Tel: 506-851-6496
Email: Michel.Tetu@acoa-apeca.gc.ca

Name of Horizontal Initiative: Atlantic Canada Tourism Partnership (ACTP)

Name of Lead Department: Atlantic Canada Opportunities Agency (ACOA)

Lead Department Program Activity: Community Development

Start Date of the Horizontal Initiative: April 2012 (tentative)

End Date of the Horizontal Initiative: March 31, 2015

Total Federal Funding Allocation (start to end date): Approval is pending.

Description of the Horizontal Initiative (including funding agreement): In 1994, ACOA entered into a three-year international tourism marketing agreement (the Atlantic Canada Tourism Partnership) with the four provincial tourism industry associations and the provincial departments responsible for tourism in Newfoundland and Labrador, Nova Scotia, New Brunswick and Prince Edward Island. The agreement was renewed in 1997, 2000, 2003, 2006 and 2009 for consecutive three-year terms.

The ACTP is dedicated to promoting Atlantic Canada as a leading vacation destination in priority markets in the mid-Atlantic and New England regions of the United States and in the United Kingdom. It enables the four Atlantic provinces to penetrate markets that are inaccessible individually; generates marketing economies and efficiencies at the consumer, travel trade and media-relations levels; and creates significant opportunities for regional tourism synergies.

Since its inception, the ACTP’s international marketing efforts have generated more than $654 million in export revenues for tourism SMEs in Atlantic Canada. Its efficiencies are demonstrated by a return-on-investment of almost $15 for every $1 invested in marketing.

The 2012-15 ACTP is a $19.95-million agreement that supports:

• fully-integrated consumer, trade and media relations marketing strategies based on sound market research, economies of scale, and commonality;
• funding that is incremental to provincial marketing budgets;
• the preservation of provincial brand equity;
• marketing activities being dictated by the marketplace;
• clear and responsive measurement systems of benefit to all four Atlantic provinces; and
• end-of-agreement project evaluations.

Funding of the partnership is shared as follows: ACOA $9,975,000 (50%), Provinces $6,585,000 (33%) and industry $3,390,000 (17%).

Additional information can be found on the ACTP website.

Shared Outcomes: ACTP directly supports the Federal Tourism Strategy’s strategic priority of “increasing awareness of Canada as a premier tourist destination” and ACOA’s Growth Strategy for Tourism. It exemplifies the strategic outcomes for ACOA's priority of increasing revenues, profits, investments and wages. The ACTP’s outcomes aim to:

• increase Atlantic Canada’s competitiveness in targeted markets;
• promote regional co-operation (federal, provincial, industry);
• promote incremental marketing activities;
• achieve economies of scale in marketing;
• raise awareness of Atlantic Canada as a “top-of-mind” destination; and
• increase tourism arrivals and tourism revenues for the four Atlantic provinces.

Governance Structure: The activities of the ACTP are managed by a ten-person management committee, consisting of the ACOA vice-president responsible for tourism, the director general of Tourism Atlantic, the four provincial deputy ministers responsible for tourism, and the four tourism industry association presidents (or their permanent designates). Management committee decisions are made by consensus. Six members constitute a quorum, provided that all four provinces are represented, with both government and industry present, and ACOA.

The management committee is responsible for the administration and management of the agreement, the allocation of annual budgets on a per-market basis, the approval of annual program work plans and budgets, and the evaluation of program activities. It oversees the work of a marketing committee, develops and oversees a communications policy, and provides program interpretation and dispute resolution.

At the national level, the Canadian Tourism Commission (CTC) is the lead organization in marketing Canada to the world. Collaborations with the CTC in markets of common interest advance the competitiveness and economic benefits derived from tourism, both regionally and nationally. To achieve greater coherence supporting Canada’s Federal Tourism Strategy and the long-term growth and competitiveness of Canada’s tourism industry, a senior representative from the CTC sits ex-officio on the management committee.

Planning Highlights: The 2012-15 ACTP maintains an international focus by continuing to pursue priority markets in the mid-Atlantic and New England regions of the United States and in the United Kingdom. Each year the marketing committee researches and prepares fully integrated consumer advertising, as well as travel trade and media relations strategies, all for the management committee’s approval. These strategies are implemented by program managers who report directly to the marketing committee.

In the U.S., the ACTP will expand its efforts by building on and enhancing the brand equity of provincial and industry partners in priority lifestyle markets in the mid-Atlantic and New England regions. Overseas, a regional Atlantic Canada brand will be delivered into developmental markets in the U.K.

Marketing budgets will be expended against fully integrated marketing activities in targeted U.S. and U.K. markets. This may include special events in concert with traditional and non-traditional consumer, trade, media relations and digital marketing strategies (e.g. social media, pay-per-click). In order to maximize efficiencies, the ACTP’s marketing activities in all market segments use tactics common to all four Atlantic provinces. All advertising and promotional materials include a mechanism that provides prospective travellers with access to information on all four provinces as a means of promoting the tourism products and experiences available throughout Atlantic Canada.

Federal Partner: Atlantic Canada Opportunities Agency

Federal Partner Program Activity (PA)	Names of Programs for Federal Partners	($ millions)
		Total Allocation (from Start to End Date)	Planned Spending for 2012-13
Community Development	Atlantic Investment Partnership II Tourism	9.975	3.325

Expected Results, by Program: The 2012-15 ACTP is expected to generate $10 in incremental economic activity for every $1 invested in marketing. The ACTP’s marketing activities are expected to generate $41.67 million in export revenues in each year of the partnership. The three-year revenue target is $125.01 million in incremental revenues for small and medium-sized tourism enterprises in Atlantic Canada.

Total Allocation For All Federal Partners (from Start to End Date)	Total Planned Spending for All Federal Partners for 2012-13
$9,975,000	$3,325,000

Results to be Achieved by Non-federal Partners: Tourism revenue of $10 for every $1 invested in marketing.

Contact Information:
Rob McCloskey
Director General, Tourism Atlantic
Atlantic Canada Opportunities Agency
P.O. Box 40
Charlottetown, Prince Edward Island
C1A 7K2
Telephone: 902-626-2479
Email: Rob.Mccloskey@acoa-apeca.gc.ca