What percentage of tourism is cultural tourism? In domestic travel by Canadians in 1994, 15 percent of person-trips² included at least one cultural activity or event. Among Americans and foreign visitors, this figure was significantly higher: 52 percent and 68 percent, respectively. When all person-trips by Canadians, Americans, and foreign visitors are combined, 19 percent included at least one cultural activity or event³ (Statistics Canada, 1994).

Table 2 (below) itemizes participation by Canadian travellers in cultural activities in 1994. In total, cultural activities were included in more than 24 million person-trips. Attending festivals and fairs was the single most popular cultural activity, followed by visiting historic sites.

Across North America, the travel behaviours of cultural tourists, when contrasted with non-cultural tourists, demonstrate higher trip expenditures, longer trip durations, a preference for hotel and motel accommodation, and a much greater interest in shopping. In Ontario, the average per-person trip expenditure among Canadian tourists attending cultural events exceeds that of non-cultural tourists by 125 percent (Table 3, below).

The 1985 report Culture --Tourism at a Crossroad (prepared for Tourism Canada) criticized the promotion of Canada's outdoor scenery and nature image in light of declining tourism figures (Leroux, 1985). The report suggested that this image was neither unique nor especially desirable, particularly to the American market. Instead, the report recommended that tourists be enticed to visit urban centres by promoting cities as exciting and unique cultural environments. Elsewhere, Tourism Canada's U.S. Pleasure Travel Market Study observed that although most Americans "perceived Canada as offering a different set of cultural experiences . . . we [Canadians] have never promoted Canada's unique cultural heritage intensively in order to capitalize upon its strength in the market" (Tourism Canada, 1986).

Among smaller Canadian cities that have profited from cultural tourism, Stratford, Ontario (pop. 28,000) is perhaps the best known. In 1997, the operating budget of the Stratford Shakespearean Festival was $27 million, attendance at the Festival exceeded 500,000, accommodation revenue owing to the Festival's presence was $8 million, 500 Stratford residents were employed by the Festival year-round, and the estimated economic benefit of all goods and services associated with the Festival was $100 million (Stratford Festival, 1997). Elsewhere in Ontario, Niagara's extensive heritage architecture, and numerous art and craft galleries), enjoys an annual economic impact estimated at $180 million (Taylor, 1996).

In British Columbia, Chemainus (pop. 4,000) is the best-known cultural tourism destination. Each year, Chemainus draws 450,000 tourists to enjoy its outdoor heritage murals, a project that has spawned 100 new businesses in the space of 15 years (UBCM, 1997). Other small cities in the Pacific Northwest that have profited significantly from cultural tourism include Ashland, Oregon; LaConner, Port Townsend; and Leavenworth, Washington (the latter drawing almost 1.5 million tourists in 1996 to a town of 2,200 people). Vancouver also has a growing cultural tourism industry, with an aggressive development and
marketing strategy.⁴

Projections for the future of cultural tourism are highly optimistic. The World Tourism Organization estimates that 37 percent of all trips have a cultural component, and that this type of travel will grow by 15 percent annually until the year 2000 (Industry Canada, 1995). With rising education levels among North Americans expected to remain a constant, an increasing number of double income families, an increasing number of women involved in travel decision making,⁵ an aging population, and the total dollar value of tourism in Canada expected to double by the year 2010 (Leitch, 1997), all indicators point to a growing demand for cultural tourism products.


1 Excluding natural heritage sites (i.e., scenic environments and parks).

2 Person-trips are trips per individual, taken for business or pleasure, having a minimum one-way distance of 80 km.

3 Statistics Canada's Canadian Travel Survey, 1994, counted visits to zoos, and to national and provincial parks, as a cultural activity. It is not possible to factor out these visits from percentage totals.

4 In 1997, Tourism Vancouver (the tourism agency for Greater Vancouver) budgeted $4.3 million (37 percent of its total budget) toward its cultural tourism initiative, "The Entertainment Season" (Tourism Vancouver, 1997).

5 Interest in arts and culture correlates more highly with women than men.

In the Central Okanagan, the economic value of tourism is considerable. In 1996, approximately $250 million was spent in Kelowna by an estimated 1.4 to1.7 million visitors (MacNaull, 1997).

Historically, the mainstay of the regional tourism economy has been recreational tourism: camping, swimming, hiking, cycling, golfing, skiing, visiting theme parks and family attractions. Although recreational tourism has served the Central Okanagan well, it is seasonally limited, vulnerable to inclement weather, and, with the exception of golf, has declining appeal to an aging tourist demographic.

By contrast, cultural tourism can occur in the shoulder seasons and off-season, is much less vulnerable to inclement weather, and has much greater appeal to the mature traveller.

How much tourism in the Central Okanagan is cultural tourism? Given the absence of a cultural tourism industry in the region, it is not surprising that the 1996 Kelowna Visitors Surveys⁶ found that only 3 percent of visitors to Kelowna participated in cultural activities, or intended to participate in cultural activities. Assuming that 3 percent of visitors are responsible for 3 percent of spending (i.e., without adjusting for the greater expenditures typical of cultural tourists), then, based on visitation and spending data, between 42,000 and 51,000 cultural tourists visited Kelowna in 1996, spending about $7.5 million.

Kelowna's revenue potential from cultural tourism cannot be known with certainty. However, the following projections can be made. Using the same assumptions made in the above calculations, if the current 3 percent of cultural tourists were raised to 19 percent,⁷ the total dollar value of cultural tourism would be $47.5 million -- an increase of $40 million. The total number of cultural tourists would be between 265,000 and 325,000 - an increase of about 225,000 to 270,000.


6 A survey of walk-in visitors seeking information from the Kelowna Visitors and Convention Bureau.

7 Reflecting the percentage of person-trips in Canada in 1994 that included at least one cultural activity or event (see Section 1.1, p. 2).

STRENGTHS
The region's foremost strength affecting cultural tourism development is the absence of a cultural tourism destination elsewhere in the interior of BC Connected to three major markets (Calgary, Vancouver and Seattle) by road and by air, the region is well-positioned to fill a cultural tourism market niche that is now unoccupied.

Most recreational tourism destinations have a weak cultural product. Similarly, most cultural tourism destinations have a weak recreational product. By developing an array of cultural attractions to complement its recreational appeal, the region can enjoy a unique market advantage. Accordingly, the region's second strength affecting cultural tourism development is its recreational tourism industry (including its infrastructure of hotels and motels, restaurants, and tourism marketing agencies).

Because appreciation of wine correlates highly with appreciation of the arts, the region's third strength affecting cultural tourism development is the presence of wineries and wine tours in the Central Okanagan, an asset that significantly enhances the region's cultural appeal.

Finally, the size of Kelowna is itself an asset for cultural tourism development. Unlike large urban centres, a smaller city can more easily design and implement tourism initiatives that change the product mix within the local market (and change the city's tourism image).

WEAKNESSES
Historically, the City of Kelowna has not made significant investments in non-profit arts groups. In 1996, the monies disbursed by the Kelowna Arts Foundation (the City's arms-length funding agency) totalled $85,000, or 95 cents per capita. This figure contrasts sharply with civic funding for non-profits arts groups in the City of Vancouver, which totalled $3.12 million in 1996, or $6.03 per capita.⁸ Similarly, although many local businesses assist various arts groups, these groups do not enjoy the scale of corporate support found in larger centres. The absence of significant civic and corporate investment inhibits the growth of the arts, and does not support cultural tourism development.

Despite their scarce financial resources, Kelowna's cultural groups produce a variety of exhibits, performances, and programs each year. However, with few exceptions, these exhibits, performances and programs are designed for the local or regional market. They will attract few tourists from outside the region, especially from major centres. Accordingly, a limited supply of exportable, "market-ready" cultural products inhibits cultural tourism development.

As the primary performing arts venue in the region, the Kelowna Community Theatre is not actively programmed and marketed to assist cultural tourism objectives. Its booking policy (and other policies and conditions at the Theatre) does not support cultural tourism development.

Although Kelowna's summer climate is well-suited to outdoor performances, the city's premier outdoor venue, Island Stage in Waterfront Park, is not equipped with dressing rooms, washrooms, a lighting and sound system, or functional seating for audiences. As such, the venue is of limited use to the performing arts.

Finally, a lack of cultural tourism marketing vehicles also inhibits cultural tourism development.

OPPORTUNITIES
The foremost opportunity for cultural tourism in the Central Okanagan lies with the development of the Kelowna Cultural District, an area bounded by Clement Avenue and the Queensway, and Ellis Street and the water, situated in Kelowna's downtown north end. Home to the Kelowna Community Theatre, the Kelowna Art Gallery, the BC Orchard Industry Museum, the Wine Museum, the Kelowna Centennial Museum, the Kelowna Library, Kasugai Garden, the planned community arts centre, the planned multi-purpose centre, and the entire Grand Hotel/Waterfront Park development (including the Island Stage), the Kelowna Cultural District can serve as the geographic focus for cultural tourism in the region.⁹

The Father Pandosy Mission presents another significant opportunity. The site of first contact between Europeans and First Nations in the interior of BC, the Mission can be restored and developed as a heritage tourism attraction.

In the wine-growing valleys of California, in the Niagara Peninsula of southern Ontario, and in other wine-growing regions of the world, the ancient marriage between wine and the arts has long been celebrated in the context of wine festivals. Accordingly, by integrating art and music into the Okanagan Wine Festival and other winery events, the region's wineries can contribute significantly to the growth of cultural tourism.

While vacationing in Canada in 1992, 8 million Canadians attended arts performances, cultural festivals, and other related events (Industry Canada,1995). By developing its Parks Alive! program and its existing arts festivals, and by identifying and developing other "niche festivals" (e.g., a First Nations' arts festival, a children's film festival), Kelowna can become a centre for festival activity in BC

The creation of sculptures, murals, and other works of public art in Kelowna (as intended by Kelowna's new public art program) can enhance the look and reputation of the city. Moreover, if clustered in the downtown or the Cultural District, public art can become an attraction in its own right.

THREATS
Cultural tourism initiatives often begin as economic development projects in cities that have fallen on hard times. Such was the case, for example, in Chemainus and Leavenworth. With few other options for economic development, these communities turned to the arts. Kelowna, however, enjoys a healthy economy and a well-developed (although vulnerable) recreational tourism industry. As such, the foremost threat to developing cultural tourism is the perceived lack of an economic development imperative. This perception can lead to complacency, and a failure to recognize and capitalize on the region's cultural potential.

In small cities, cultural tourism is a development process involving four partners: the cultural community (which provides the cultural product), the tourism industry (which helps market the cultural product), business (which helps support the cultural community through sponsorships and funding), and civic government (which designs policies and provides resources to support the entire initiative).Typically, this process takes five to ten years to develop a competitive cultural tourism product, and ten to twenty years to create a cultural tourism industry. In Kelowna, a limited understanding of this process inhibits cultural tourism development.

Cultural tourism usually occurs in communities with well-developed urban aesthetics. Although Kelowna and the Central Okanagan has much of which it can be proud, the visual impact of the portable signage, strip malls, and unlandscaped medians on Highway 97, along with the billboard development on the Westside approach to the floating bridge, is not conducive to cultural tourism development.

A final threat to cultural tourism is the possibility that another community in the BC interior will move to fill the cultural tourism market niche that is now unoccupied. For example, if Nelson were to devise and implement a cultural tourism strategy, its heritage character and arts ambience would lend it a competitive advantage.


8 The City of Vancouver funds non-profit arts groups through 8 separate grant programs, including a grant-equal-to-rent program for groups that perform annually in Vancouver's civic theatres. Figures cited for both Vancouver and Kelowna exclude capital and operational funding for public art galleries, civic theatres, museums and libraries.