ACCOUNTABILITY
STATEMENT |
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The business plan for the three years commencing April 1,
2006 was prepared under my direction in accordance with the
Government Accountability Act and the government's
accounting policies. All of the government's policy decisions
as of February 23, 2006 with material economic or fiscal implications
of which I am aware have been considered in preparing the
business plan.
The Ministry's priorities outlined
in the business plan were developed in the context of the
government's business and fiscal plans. I am committed to
achieving the planned results laid out in this business plan.
[Original Signed]
Clint Dunford, Minister
of Economic Development
March 1, 2006
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THE
MINISTRY |
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The Ministry consists of the
department of Economic Development, which is composed of
four divisions – International Offices and Trade, Industry
and Regional Development, Tourism Marketing and Development,
and Policy and Economic Analysis. Economic Development works
in partnership with various stakeholders to provide the
necessary information, tools and advice for businesses and
other organizations to successfully grow their businesses
and communities and compete with the best in the world.
The Ministry also provides strategic economic leadership
and business intelligence aimed at diversifying the economy
and sustaining economic prosperity. This is facilitated
through staff in Edmonton, Calgary, 11 regional offices
across the province, nine international offices and international
representatives.
Economic Development receives
advice from a number of advisory bodies. The two major advisory
bodies are: the Alberta Economic Development Authority and
the Strategic Tourism Marketing Council. Alberta Economic
Development Authority represents Alberta's business community
and works in partnership with government to help shape policy
by providing advice on business and economic development
issues. Strategic Tourism Marketing Council includes both
private sector and government representation and provides
guidance regarding tourism marketing strategies.
Other advisory bodies include
groups such as the Aboriginal Tourism Advisory Council and
the Film Commission Advisory Council. The Aboriginal Tourism
Advisory Council provides guidance on ways to grow Alberta's
Aboriginal tourism industry. The Film Commission Advisory
Council provides advice to government on the directions
and strategies for growth and sustainability of the film
industry.
The Ministry has a number of
sector teams that partner with industry clients and other
stakeholders to improve the competitiveness of Alberta's
industry sectors. Sector teams were created to focus on
opportunities for sector growth and development and to resolve
issues within the economic development mandate. The teams
provide advice to the Ministry, identifying where the government
can play a greater role in increasing the growth, diversification
and competitiveness of the sector through policy development
and program implementation.
The Ministry's core businesses
are supported by essential corporate services that assist
Ministry staff and facilitate business processes. Corporate
services include information management, information technology,
human resources, communications, finance and administrative
services, and business planning and knowledge management.
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VISION |
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Alberta is the best place in the world to live, visit
and do business.
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MISSION |
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To facilitate business and community prosperity.
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LINK
TO THE GOVERNMENT OF ALBERTA STRATEGIC BUSINESS PLAN |
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Link to goals in
the Government of Alberta business plan
In fulfilling its mandate, Economic Development demonstrates
support for the broader goals of the Government of Alberta
as outlined in its Government of Alberta business plan. Goal
1 - Alberta will have a diversified and prosperous economy.
Goal 3 - Alberta's international competitiveness will be enhanced.
Link to strategic opportunities
in the 20-year strategic plan
Economic Development also contributes to the attainment of
the Government of Alberta 20-year strategic plan, Today's
Opportunities, Tomorrow's Promise: A Strategic Plan for the
Government of Alberta, through the following strategic
opportunities:
Strategic Opportunity 1 – Unleashing
innovation
- Creating the environment and
infrastructure that enables knowledge and technology to
invigorate our traditional economic strengths and to create
new economic opportunities.
Strategic Opportunity 3 – Competing
in a Global Marketplace
- Ensuring reliable export markets.
- Building on Alberta's economic
cornerstones, such as oil and gas, agriculture, forestry
and tourism.
- Continuing to keep taxes low.
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SIGNIFICANT
OPPORTUNITIES AND CHALLENGES |
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Opportunities
Alberta leads Canada in economic performance and future growth
prospects. Economic growth over the past decade has provided
Albertans with the most enviable record in Canada in terms
of job creation, average family income, standard of living
and lowest overall tax burden. New opportunities for value-added
service and supply industries and technologies related to
the energy sector, along with increasing international trade
opportunities and tourism development initiatives, help to
balance future economic growth in the province.
More than $100 billion in major
capital projects are under construction or planned for Alberta
over the next few years. Most of this investment is being
driven by the energy sector, which is creating significant
new opportunities for value-added service and supply industries
and development of new technologies, particularly in the non-conventional
oil and gas sectors (i.e., oil sands, coal bed methane).
Opportunities in international
trade and investment initiatives will help to support sustainable
economic growth in Alberta. The government will continue to
manage the implications of a dynamic international environment
in order to build alliances with key decision makers, attract
investment and export Alberta products and services to new
and existing markets. Growth in new and emerging global economies
such as China and India present future prospects to grow and
diversify investment sources and export markets, while still
nurturing our strong ties with the U.S.
In addition to trade and investment
opportunities, people from across Canada and beyond are attracted
to Alberta for its quality of life and world-class tourism.
Increasing demand for tourism experiences including Aboriginal,
agri- and eco-tourism creates new opportunities for the province.
Additional tourism funding, supported by Alberta's Tourism
Levy, will assist in the development of tourism products and
services in these areas. The Aboriginal community, together
with a newly established Aboriginal Tourism Advisory Council,
will guide the development of Aboriginal tourism in the province.
Challenges
Continued economic growth and innovation in a variety of sectors
positions Alberta as a strong global player as the province
advances into its second century. Effective management of
growth in key areas will help to ensure that Albertans can
continue to live in a prosperous province and enjoy a high
quality of life. However, the magnitude of investment in energy
and a number of other sectors is creating major challenges
for Alberta in terms of skill shortages, infrastructure pressures
and balancing economic growth over the longer term to ensure
that Alberta's economy does not become increasingly dependent
on, and vulnerable to, the cyclical nature of the commodity
energy sector.
Providing Skilled Workers
– Continued growth in a variety of sectors, changing demographics
and tightening labour markets place increasing demand for
a skilled and knowledge-based workforce across the province.
A skilled and highly competent workforce is key to maximizing
our current economic opportunities and to creating new ones.
The Ministry is developing an immigration marketing strategy
to attract and retain skilled immigrants to Alberta. The Ministry
will also continue to deliver the Provincial Nominee Program.
Strengthening the Rural
Economy – Strong rural/regional economies are the
foundation for strong rural communities. Encouraging a stronger
future for rural Alberta by promoting economic and community
development are key areas for growth. Economic Development
supports the Rural Development Strategy and its efforts to
strengthen rural communities and their economies. The Ministry
further supports rural development through increased emphasis
on tourism marketing and development in rural communities.
Improving Infrastructure
and Transportation Links – Alberta's continued growth
depends on many factors including sufficient infrastructure
(e.g., post-secondary and health facilities) and efficient
transportation links to get goods to market. Economic Development
continues to partner with other government departments, including
the Ministry of Infrastructure and Transportation, to address
industry's business needs.
Maintaining a Globally
Competitive Business and Tax Environment – Alberta
maintains its position as a business-responsive environment
by supporting a low rate, broad-based tax regime. The challenge
for government is to maintain its competitive position in
order to continue to attract new industry and business development.
Innovation Capacity and
Performance – Improving Alberta's innovation capacity
is critical to supporting the province's long-term economic
competitiveness in a global economy. Economic Development
continues to encourage innovation and productivity through
Securing Tomorrow's Prosperity, the province's long-term market-driven
value-added strategy that encourages the creation of higher
value-added jobs, goods and services.
Benchmarking shows that by most
economic indicators, Alberta has been Canada's top performer
and an above average performer compared to some of the strongest
U.S. and European performers, as shown in Chart 1. However,
as shown in Chart 2, Alberta's innovation performance lags
behind its U.S., European and Canadian competitors.
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STRATEGIC
PRIORITIES 2006-09 |
The
Ministry has identified the following key strategic prioities
in addition to its important ongoing activities: |
1.
Managing Growth and Prosperity
Linkage:
Goals 1, 2, 3, 4, 5, 6, 7 and 8 |
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Economic Development works with other government ministries
and stakeholders to address Alberta's economic challenges.
This approach is focused on managing the challenges of economic
growth now and over the long-term, and encouraging development
that is shared across Alberta, based on regional strengths.
Within this framework, Economic
Development has three priorities:
Securing Tomorrow's Prosperity:
The Ministry continues to expand and implement value-added
strategies that foster additional economic wealth creation
opportunities. Economic Development's long-term market-driven
value-added strategy, Securing Tomorrow's Prosperity,
encourages innovation and productivity and the creation of
value-added jobs, goods and services.
Efforts are focused on adding
value to priority sectors with the highest potential for growth,
enhancing industry capacity and development and improving
productivity through innovation and technology adoption. Efforts
to enhance Alberta's competitive advantage focus on pursuing
tax policy and other mechanisms that improve access to equity
capital and ensuring effective and efficient transportation
systems reach global markets. For example, the Ministry is
developing an immigration marketing strategy to attract and
retain skilled immigrants to Alberta as well as working with
stakeholders to promote opportunities within Alberta's refining
and petrochemical industry.
Rural and Regional Development:
The Ministry supports the Rural Development Strategy,
which is a government approach to building vibrant and sustainable
rural Alberta communities. Economic Development continues
to implement strategies to develop and market business opportunities
in rural Alberta. Initiatives within the strategy seek to
facilitate the building of business relationships among firms,
Aboriginal communities and stakeholders; develop and deliver
tools necessary to support economic and community development
in rural Alberta; and strengthen the capacity of community
economic development across the province. The Ministry further
supports rural development through tourism marketing and development
in rural communities.
International Strategy:
Economic Development manages the implications of a dynamic
and changing international environment in order to build alliances,
attract investment and economic immigrants, and export Alberta
products and services to new and existing markets. The strategy
secures Alberta's long-term economic future by strengthening
and diversifying Alberta's export markets and increasing international
investment sources.
Economic Development continues
to pursue strategies and initiatives that enhance Alberta's
international competitiveness, expand Alberta's economy by
capitalizing on international opportunities for Alberta goods
and services and increase tourism visitation to Alberta. The
Ministry focuses on helping companies enhance and diversify
business linkages beyond the U.S. market; expand business
relationships in emerging economies; expand the trade and
investment focus to include the attraction of skilled immigrants;
and promote Alberta products and services in targeted international
markets.
This strategy also provides an
opportunity to build upon existing government strategies in
the areas of: human capital, involvement in international
relations, and research and innovation investment. |
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Tourism Development and Marketing
Linkage:
Goals 3, 6, 7 and 8 |
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The
Ministry will continue to focus on the transparent and effective
use of tourism levy funding for the development and marketing
of new and expanded tourism opportunities. This includes increasing
marketing promotions to compete more effectively in national
and international markets and developing and marketing new
tourism opportunities including the Canadian Badlands, Grande
Alberta Dinosaur Trail and winter tourism corridors, and emphasizing
the role played by Alberta's two largest cities, Edmonton
and Calgary, in providing "Gateway" access to the rest of
the province. |
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CORE
BUSINESSES, GOALS, STRATEGIES & PERFORMANCE MEASURES |
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Core Business One: Provide Strategic Economic Leadership and
Business Intelligence |
Economic
Development works with other government departments and agencies,
such as the Alberta Economic Development Authority and the Strategic
Tourism Marketing Council, to coordinate and develop policies
and strategies, and provide business intelligence that help
create an environment that enhances business competitiveness
and diversification. |
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Economic growth and diversification through collaborative
strategic planning and policy development |
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Economic Development
monitors trends and issues that impact Alberta government
policy and programs and sets a long-term strategic direction
for Alberta's economic development by focusing government's
overall efforts at maintaining and enhancing the Alberta Advantage.
The Ministry will continue to collaborate in the development
and implementation of key policy initiatives to support the
value-added strategy, including: a cross-ministry immigration
strategy to support immigrants and immigration to Alberta;
mechanisms to support technology commercialization and adoption,
and enhance access to equity capital; and an integrated multi-modal
transportation strategy. |
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1.1 Lead the
implementation of Securing Tomorrow's Prosperity with
other participating ministries to support the development
of competitive value-added goods and services industries.
1.2 Provide longer-term strategic
input to the development of policy to maximize the value of
Alberta's natural resources and to support a sustainable and
diversified economy.
1.3 Collaborate with the Alberta
Economic Development Authority to set key directions where
targeted actions and strategies can produce the best economic
return for Albertans.
1.4 Provide the skills, processes,
and technology to enhance information collection and analysis,
management and sharing of knowledge within the Ministry, and
to support strategic consultation with our clients.
1.5 Participate in government's
top priorities that influence the province's prosperity. |
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Informed industry decision-making in Alberta |
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The Ministry
is continually working to strengthen its strategic intelligence
gathering and dissemination processes and capabilities to
deliver timely and relevant information and intelligence to
our clients. |
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2.1 Use Economic
Development's network of international and regional offices,
and business and government contacts, to deliver business
and economic information and intelligence in a timely fashion
to support our clients in their decision-making processes.
2.2 Enhance the effectiveness
of Economic Development's website, www.alberta-canada.com,
as a tool to disseminate business information and intelligence
to clients.
2.3 Assist the development and
expansion of small and medium sized Alberta businesses through
innovative means (e.g., e-business training) that are provided
by service delivery organizations such as The Business Link
and the Calgary Business Information Centre.
2.4 Report on the performance
and prospects of the Alberta economy to facilitate businesses'
planning and budgeting. |
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Core
Business Two: Increase Industry and Regional Development, Trade
Promotion and Investment Attraction |
Economic
Development works with Alberta business clients, communities
and Regional Economic Development Alliances to identify market
opportunities for expansion, trade and industry development.
The Ministry markets Alberta as an attractive destination
for investment, film production, locating businesses and skilled
workers in targeted sectors. The Ministry provides information
to companies, economic immigrants and individuals and assists
them with services designed to attract them to the province.
Economic Development is also
responsible for planning, organizing and coordinating Premier
and Ministerial trade missions, and other international inbound
and outbound missions to raise awareness among international
clients of the capabilities of Alberta's industry and to present
Alberta's businesses with specific opportunities to expand
their export markets.
The Ministry works closely with
the Alberta Economic Development Authority in identifying
priority markets for future business missions. It also develops
Alberta's International Marketing Strategy that contains the
Government of Alberta's plan to expand export trade and investment
by focusing on specific international markets and key industry
sectors of the Alberta economy. Alberta's international offices
provide strategic market intelligence, create partnerships,
networks and alliances, focus on attracting new investment
and showcase Alberta. |
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Increased growth and competitiveness of Alberta's value-added
sectors |
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The Ministry
works to make Alberta globally competitive in priority sectors
by promoting initiatives to improve company innovation and
productivity at home and in the international marketplace.
As identified in Securing Tomorrow's Prosperity,
these priority sectors are:
- Energy Technologies and Services
- Agri-food
- Building/Wood Products
- Chemicals and Refined Petroleum
Products
- Information and Communication
Technologies
- Health and Bio Industries
- Environmental Technologies
and Services
- Tourism
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3.1 Encourage
industry growth and build market presence in Alberta's priority
sectors by utilizing Economic Development's sector teams.
3.2 Improve company competitiveness
and productivity by supporting industry innovation, technology
adoption and productivity including:
- Encouraging the adoption of
technology commercialization and business practices/processes.
- Assisting Alberta companies
to match/develop capabilities to market opportunities.
3.3 Promote and develop partnerships,
networks and alliances to expand capabilities and improve
competitiveness.
3.4 Work with industry to establish
a vision for long-term growth. |
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Increased exports of Alberta's goods and services |
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The
Ministry facilitates exports in manufactured products and
professional, scientific and technical services to target
markets. |
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4.1
Provide strategic intelligence and market information to support
companies in identifying and accessing market opportunities
within global target markets.
4.2 Assist export-ready Alberta
businesses in developing capabilities to export products and
services to international markets.
4.3 Support market entry for
Alberta exporters by showcasing Alberta abroad.
4.4 Support Alberta companies
pursuing capital projects financed by international financial
institutions.
4.5 Promote and develop partnerships
with other government agencies (federal, provincial and municipal)
to assist Alberta companies.
4.6 Build on Alberta companies'
capabilities in sectors such as oil and gas and agri-food
products to enable market penetration of closely related sectors,
such as engineering services or environmental goods and services.
4.7 Assist Alberta businesses
in reaching potential investors, partners and customers by
providing local market support through Alberta's international
office network. |
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Increased investment in Alberta |
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The Ministry works with individuals and companies
to secure and retain investment for Alberta, with a specific
emphasis on priority economic sectors. The Ministry also facilitates
the attraction of economic immigrants (skilled workers and
business entrepreneurs). |
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5.1 Market Alberta as
an attractive destination for investment to targeted companies
and capital investors.
5.2 Target international companies within
priority sectors and global markets for new or expanded investment
in Alberta.
5.3 Expand the Provincial Nominee Program
to assist employers in meeting skilled worker shortages.
5.4 Market Alberta as a destination for
economic immigrants.
5.5 Market and promote Alberta as an attractive
location for film production and investment and deliver the
Alberta Film Development Program.
5.6 Work with rural Alberta communities
and alliances to identify investment opportunities. |
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Regional economic development support to Alberta communities |
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Economic
Development supports the Rural Development Strategy
to ensure that rural Albertans contribute to and benefit from
a diverse, sustainable and prosperous economy. The Ministry
also contributes to the work of 12 Regional Economic Development
Alliances across Alberta. |
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6.1
Increase the number of Regional Economic Development Alliances
across the province.
6.2 Support the ongoing development
and operations of the Regional Economic Development Alliances
throughout Alberta, which includes developing strategic plans
and annual operating plans, and supporting regional economic
development.
6.3 Provide information and
advice to other regional partnerships and community economic
development projects, including assistance to communities
suffering from major economic setbacks (e.g., plant closures,
natural disasters).
6.4 Strengthen community economic
development capacity within Alberta through partnerships with
the Economic Development Association of Alberta, AlbertaFirst.com,
the Regional Economic Development Alliances and others.
6.5 Support the implementation
of the Rural Development Strategy.
6.6 Encourage/build relationships
between regional alliances and Aboriginal communities.
6.7 Enhance the delivery of business
information and management training opportunities to Aboriginal
entrepreneurs and businesses. |
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Core
Business Three: Facilitate Tourism Marketing and Development |
The
Ministry facilitates the development of the tourism industry
and marketable tourism product by undertaking research, representing
tourism industry interests in policy and planning initiatives
and providing information to industry that helps to position
new and enhanced tourism products in Alberta.
Tourism marketing priorities
are developed through the Strategic Tourism Marketing Council's
three-year plan and delivered by the Travel Alberta Secretariat. |
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Increased growth and expansion of marketable tourism products |
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The
Ministry facilitates the development of tourism products and
the tourism industry. |
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7.1
Work with industry and stakeholders to reduce impediments
to tourism growth and ensure a policy and regulatory environment
that is supportive of tourism development.
7.2 In cooperation with Community
Development, encourage a more active role in the tourism industry
for Provincial Parks/Recreation Areas and historical sites
including private sector business opportunities that are compatible
with the size and management intent of the site or facility.
7.3 Provide advisory services,
expertise and information to existing tourism operators, start-up
operations and stakeholders to facilitate the development
and improvement of Alberta's private and public sector tourism
products and assets.
7.4 Facilitate and attract investor/entrepreneur
interest and investment in Alberta's tourism industry.
7.5 Support the expansion of
the tourism industry through development of new and enhanced
destinations and products (including Canadian Badlands, Grande
Cache area, the Grande Alberta Dinosaur Trail, Winter Tourism
Corridors and Film Tourism).
7.6 Work closely with the Aboriginal
Tourism Advisory Council to identify Aboriginal tourism product
development, and work closely with First Nations and Métis
interests and communities to develop and market Aboriginal
tourism product (e.g., the Métis Crossing Project and interpreter
training program).
7.7 Develop and market new tourism
opportunities in rural Alberta.
7.8 Work with other levels of
government and industry stakeholders to increase awareness
of tourism as a viable economic activity, and advocate for
a business environment that supports the growth and development
of tourism. |
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Increased tourism visitation from targeted Canadian and International
tourism markets |
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The
Ministry, through the Strategic Tourism Marketing Council
and Travel Alberta, develops and implements marketing programs
that heighten awareness of Alberta as an attractive destination
for tourism. |
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8.1
Develop and partner domestic and international marketing programs
for Alberta through Travel Alberta that support the Strategic
Tourism Marketing Plan developed by the Strategic Tourism
Marketing Council. The Plan outlines both domestic and international
target markets and strategies to increase visitation, length
of stay and spending in Alberta.
8.2 Deliver tourism marketing
support services to influence travel behaviour through:
- Information dissemination
and travel counselling through the Travel Alberta Visitor
Information Centres and Contact Centre and through community
Visitor Information Centres.
- Enhancement of the Tourism
Information System to better support the Travel Alberta
Contact Centre and Visitor Information Centres, the TravelAlberta.com
website and publications.
- Expansion of tourism research
to assist industry decision-making.
- Continued improvements to
support effective, customer-focused and user-friendly Alberta
tourism websites.
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EXPENSE
BY CORE BUSINESS |
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MINISTRY
STATEMENT OF OPERATIONS |
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CONSOLIDATED
NET OPERATING RESULT |
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