June 25, 1999
To:Economic Development and Parks Committee
Policy and Finance Committee
From:Joe Halstead, Commissioner Economic Development, Culture and Tourism
Subject:International City to City Program - All Wards
Purpose:
This report provides, as directed by Council, proposed recommendations on a policy and criteria for the support of and
participation in inbound and outbound missions to selected world cities for economic development purposes. It outlines the
work plan and activities for 1999 and the first quarter of 2000.
Funding Sources, Financial Implications and Impact Statement:
New funds of $250,000 are allocated to the 1999 Operating Budget of the Economic Development Office.
Recommendations:
It is recommended that:
(1)The policy framework for the International City to City Program and criteria for, the support of and participation in,
inbound and outbound missions outlined in Appendix A be approved; and
(2)The activities and budget for 1999 outlined in Appendix B be approved.
Background:
During the budget review, the Mayor was requested to provide input and recommendations on the process to undertake
relationships with selected cities around the world for economic development purposes. Council adopted the following
recommendations:
- Additional funds in the amount of $250,000 be allocated to maintain relationships with selected cities around the world;
- The Commissioner of Economic Development, Culture and Tourism report to Economic Development Committee on
an annual basis the work plan and activities of the year;
(3)The Commissioner of Economic Development, Culture and Tourism work with Protocol and other City departments
to co-ordinate activities of an international city to city program;
(4)The Commissioner of Economic Development, Culture and Tourism establish a policy and criteria for the support of
and participation in inbound and outbound missions that contain the following:
-identification of a clear economic benefit to the City prior to approval of international city to city program activities;
-strict limits on the numbers of staff and elected officials participating in international city to city program activities;
-requirement for a written follow-up report from participants in international city to city program to the Economic
Development Committee;
-approval by Mayor for international city to city program activities
(5)That the policy and criteria be approved by the Finance and Policy Committee.
Discussion:
Since amalgamation, the Economic Development, Culture & Tourism Department and the Protocol Office have been
discussing the various options of managing an International City to City Program. With the exception of a few inbound
visits from our partnership cities, the program activities had been put on hold until Council approved the rationale and
program funding.
On April 27th, 1999 Council provided the funding and the rationale for initiating an international city to city program. It is
crucial, therefore, that a basic work plan for 1999, as well as the policy framework for the International City to City
Program, be established and approved expeditiously. As directed by Council, the thrust of the program is to foster
relationships with international cities for economic development purposes. The program will be structured to stimulate
inward economic investment and export development by focussing on the economic similarities and characteristics
between Toronto and its partnership cities. The technical exchange program that the former cities were involved in is not a
component of this International City to City work plan but will be strategically linked for economic development purposes.
A critical element of the International City to City Program will be the opportunity to capitalize and foster the tremendous
opportunities within our own diverse ethnic communities as entries or 'ports of call' to open the doors to mutually
beneficial economic outcomes between Toronto and their home lands. Working with these important communities will
assist in raising the City of Toronto's profile for business development purposes and will also benefit the City's Olympic
bid efforts.
Section 1: Policy Framework for International City to City Program
Appendix A outlines in detail the policy framework recommended. The core principles are:
-Must generate potential business investments to Toronto, facilitate joint venture and partnerships, expansion of export
market area for local business, and promoting community, culture and tourism.
-To capture the economies of scale, outbound trips will be planned to two or more cities; national and regional gateways,
such as London, Tokyo, Hong Kong and Beijing will also be visited as appropriate.
-The delegation will include the Mayor or his designate, two Councillors, up to two staff, and local business
representatives who will cover their own expenses.
-A written follow-up report from participants in outbound missions to be submitted to the Economic Development and
Parks Committee.
-An annual business plan will be prepared and submitted to the Economic Development and Parks Committee following
the review and input from the Mayor.
Section Two: 1999 Work Plan and Program Activities:
The International City to City program goals are:
-To help grow Toronto businesses through international partnerships;
-To attract new business and investment to Toronto; and
-To increase Toronto's profile internationally.
The 1999 program will rely on a pragmatic and critical review of the opportunities presented by the economies of the
designated City to City cities and the desire of those cities to focus their attention on economic development in Toronto.
This will be done directly with our partner cities and right here with our significant community and business leaders with
contacts in the targeted areas.
It is recommended that in 1999 Toronto focus on three major regions: Eastern United States, Central Europe and Asia. The
rationale for commencing with these regions is based on the fact that amalgamated Toronto has, over the years, made
significant investments in business development in these areas. More importantly, these regions have strong economic
potential for the growth of Toronto businesses. Each year the work plan will review the outcomes of the previous year's
efforts and will consider new opportunities as conditions change.
Within the three targeted regions, the City has six partnership cities that will serve as 'entry points to the regions'. This will
facilitate the exploration of economic activities in cities that may or may not have formal relationships with Toronto. The
partner cities identified are: Amsterdam (The Netherlands), Frankfurt (Germany), Chongqing (China), Wuxi (China),
Indianapolis ( U.S.A.) and Chicago (U.S.A.). The potential for return on investment of this approach will be much higher
and the cost to the City more manageable. The economies of these cities correspond most closely with Toronto's key
sectors and their interest in economic development matches with our program goals.
The United States is our major trading partner and allows ease of entry for all sectors of Toronto's economy. As such, it is
the focus of a majority of the division's investment attraction efforts through attendance at trade shows, investment and
sector specific business meetings. These efforts, though separate, will be coordinated with the International City to City
Program.
Staff will resume active contact with cities within the targeted regions/countries and work with local business, foreign
embassies, consulates and representatives in Toronto to establish or reinitiate a business advisory group for each
partnership city. The objective of each advisory group is to provide contacts and leads, facilitate export market
development, and assist with client and investment building.
A major component of the program activities for 1999 will be the reestablishment and refocusing relationships on
economic development goals. This will take place first at home as described above and then by making contact. Extensive
work will also have to be done to build an in depth understanding of the local and regional economies of our city to city
partners so that we will know how to take best advantage of our linkages. Finally, Toronto will be receiving inbound and
undertaking outgoing missions for the first time. It is recommended that the City receive eight incoming visits and
undertake two outgoing visits in 1999.
Overview of 1999 Program:
| International City to City Program |
|
| Activity |
Time frame |
| Mission to Europe:
Amsterdam, Frankfurt |
November/December
( 5 to 7 days) |
| Mission to Asia:
Chongqing, Wuxi, Taipei, Seoul and Hong Kong |
October/ November
(15 to 17 days) |
| Business Meetings United States:
Chicago, Indianapolis |
September /October
(Chicago - September)
( Indianapolis - October) |
| Incoming Missions:
Limit to 9 existing City to City cities per year determined
by invitation from Mayor |
Ongoing
List developed within yearly work plan. 1999 list to be
determined. |
| Winter 2000
Mission to Europe:
Ankara, Haifa, London |
January/February
(8 to 10 days) |
1)Inbound Missions:
The budget for program costs to support eight inbound missions in 1999 is approximately $35,250. A number of partnership cities have written to request an inbound mission including Amsterdam, Volgograd, Chicago, Indianapolis, Chongqing, and Wuxi. These and other partnership cities that have expressed an interest in expanding the economic benefits of the relationship will be contacted to see if a visit can be arranged. The 1999 list will be finalized in consultation with the Mayor and the Protocol Office.
The staff in Economic Development and the Protocol Offices will work with the other city departments to co-ordinate activities and programs such as: a courtesy call on the Mayor, meetings with Council members, and senior staff, and welcome reception. They will organize investment and business meetings with local companies, arrange site and plant tours as well as work with local businesses and community.
The budget will cover official reception, meeting expenses, overhead costs and materials and, in the case of a delegation from the Far East, some hotel rooms, meals and local transportation. This is so because these costs are typically covered by those cities when Toronto is on an outbound mission.
The program for an inbound mission includes a courtesy call on the Mayor and/or members of Council, investment and business meetings, site familiarization tours, meetings with departmental and senior government officials, and a formal welcome such as a luncheon or reception.
As indicated in the proposed policies governing the International City to City Program in Appendix A, the following relate to inbound missions:
_Funds allocated to the International City to City Program for inbound missions are for the sole purpose of activities related to the designated list of twenty-six partner cities or those specifically indicated in the approved business plan.
(2)The purpose of inbound missions from the designated list will focus on economic development initiatives.
(3)An annual business plan will be prepared and submitted to the Economic Development and Parks Committee outlining: the list of cities expected to generate the 6 to 10 inbound missions.
(4)An effort will be made to ensure that each of the City to City cities will have the opportunity of one official inbound mission during the term of Council
2) Outbound Missions
Rationale
_Potential for business and investment attraction
_Joint venture and partnerships opportunities for Toronto business
_Expand Export Market Areas for Toronto manufacturers
_Job creation
_Tax generation
_Opportunity to promote Toronto 2008 Olympic Bid
_Raise profile of Toronto
_Increase tourism, business travel and convention business
Activities
_Prepare economic profile of cities to be visited
_Liaise with local and overseas government officials and business representatives
_Host investment seminars to promote Toronto and answer basic investment questions
_Invite local business representatives to participate in outbound missions and provide leads on who to visit and pursue
_Arrange one-on-one and small group investment and business meetings
_Schedule itineraries
_Make travel arrangements
_Arrange official gifts
a) Mission to Europe:
MISSION TO EUROPE
It is suggested that a visit be made to Amsterdam (The Netherlands) and Frankfurt (Germany) in the fall of 1999. The timing would be approximately late November to mid December for five to seven days. The budget for the mission is approximately $35,770.
The objectives of visiting Amsterdam (The Netherlands) and Frankfurt (Germany) are to promote Toronto, and to meet with their local companies who have expressed interest in joint venture and partnership with Toronto companies. Specific meetings will be arranged with companies engaged in Toronto's key sectors, namely: tourism, biotech, information technology, telecommunications, food and beverage, and finance.
Program in Amsterdam
-Meet with Mayor and Councillors of Amsterdam
-Lunch with Amsterdam Business Association
-Meeting with Canadian Consul and Officials in The Hague
-Business meetings and corporate calls to targeted companies
Program in Frankfurt
-Meet with Mayor and Councillors of Frankfurt
-Lunch with Frankfurt Business Association
-Meeting with Consular Officials
-Business meetings and corporate calls to target companies
b)Mission to Asia:
It is also suggested that a trip be made to Asia to capture some of the advantages of its growing recovery. The possible itinerary for this outgoing mission will be Taipei (Taiwan), Seoul (Korea), Chongqing (China), Wuxi (China) and Hong Kong and the timing would be early November for 15 to 16 days. The budget for the mission is approximately $75,000.
As with the European trip, the objectives of visiting designations in Asia are to promote Toronto, and to meet with their local companies who have expressed interest in joint venture and partnership with Toronto companies. Specific meetings will be arranged with companies engaged in Toronto's key sectors, namely: biotech, information technology telecommunications ( semi-conductor fab plants), fashion and textile, food and beverage, and construction related industries. There will also be an opportunity to meet with the Olympic Committees in Taipei and Seoul.
The Taipei Economic and Cultural Office in Toronto, the Consular General of the Republic of Korea, Toronto, the Hong Kong Economic and Trade Office, Toronto, and the Consular General of the
Republic of China, Toronto, will assist with and facilitate the delegation's meeting arrangements and itineraries.
The following meetings and activities will be arranged for the Toronto delegation:
Program in Taipei:
-Meetings with Mayor and Councillors of Taipei
-Taipei Foreign Affairs Office
-Business luncheon seminar (the seminar will be organized by the Canadian Trade Office in Taipei - over 80 businesses will be expected to attend
-UNIAIL Corporation - the company bought 25 Dash 8-400 series aircraft from Bombardier facility in Dowsview, Toronto; 14 aircraft have been delivered, 6 will be delivered in September 1999, and another 5 next year
-Venture Capital Association - the 48 members association has billions to invest in overseas hi-tech companies in the biotech, information technology and telecommunications sectors
-Taipei-Taiwan Olympic Committee
-Site visit and meeting with representatives of the world famous Science Park
Program in Seoul:
-Ministry of Commerce
-Ministry of Industry
-Korean Trade and Investment Agency
Program in Hong Kong:
-Hong Kong Manufacturers' Association
-Hong Kong Trade Development Council
-Hong Kong Bank
-Hong Kong companies who have major investments in Toronto
-A speaking engagement organized by a local business association
Program in China: Chongqing
-Mayor of Chongqing
-Meet with executives of offices of Northern Telecom, Bank of Nova Scotia and Sun Life
-Explore the opportunities for more foreign students to come to Toronto
c) Winter 2000 - Proposed Mission to Europe
Currently exploring the opportunity to undertake a business development mission to two additional partner cities in early 2000: Ankara, Turkey and Haifa, Israel.
Conclusions :
As one of the most culturally diverse cities in the world, Toronto has tremendous opportunities to connect with key regions across the world through its local multiethnic and multicultural communities. The Economic Development Office, by using this clear advantage of "ports of entry' through our community and capitalizing on our new international city to city program, can begin to generate business leads and create new investment potential.
It is clear in this report and in the decision made by City Council that the prime purpose of our activities, in particular any outbound missions, is to stimulate the growth and strengthening of Toronto's economy. The policy framework contained in this report places before the Committee an approach which will meet the objectives of Council. The work program provides an outline of the type of activities which will be pursued over the next few months, at the same time as detailed planning, booking of appointments and the connecting to the local community takes place.
The framework and plan is an ambitious one given the late start. The immediate approval by the Policy and Finance Committee is essential in order for us to fully implement the plan. Should there be any significant changes to the plan, the Commissioner will report back.
Contact Name:
Peter Finestone, 392 3376
Brenda Librecz, 397 4700
Joe Halstead
Commissioner Economic Development, Culture and Tourism
ECO-99-35
Appendix A
International City to City Program - Policies
Must generate potential business investments to Toronto, facilitate joint venture and partnerships, expand the export market area for local business, and promote community, culture and tourism.
10Funds allocated to the International City to City Program are for the sole purpose of activities related to the designated list of twenty-six partner cities, or those specifically indicated in the approved business plan.
20The program funding, for both inbound and outbound missions, will be augmented by the contributions of the business and local communities as well as the Canadian government on foreign trips.
30Budgets will include the full cost of planning, travel, accommodation, meals, business seminars and meetings, gifts, official receptions and the follow-up.
10An annual business plan will be prepared and submitted to the Economic Development and Parks Committee outlining:
2.A summary report of the trip and an action plan will be produced following each mission.
3.To capture the economies of scale, outbound trips will be planned to visit two or more cities; national and regional gateways, such as London, Tokyo, Hong Kong and Beijing will also be visited as appropriate.
40Program to be approved by Mayor prior to submission of business plan to Economic Development & Parks Committee
An annual business plan will be prepared and submitted to the Economic Development and Parks Committee outlining the list of cities expected to be hosted in Toronto (6 to 10 maximum per year) and the tentative timing of those visits. The Economic Development and Protocol Offices will try to respond to the official requests of the City to City cities attending to the rationale for the visit such as An effort will be made to ensure that each of the City to City cities will have the opportunity of one official inbound mission during the term of Council.
The addition of cities not on the designated list will only be considered during the business plan stage and will only be pursued if there is strong potential for economic benefit.
In the case of a reciprocal visit from a partnership city which has previously paid for all of the accommodation and meals of a City of Toronto delegation, hotel and meals for three official delegates
The total budget for inbound missions in a year will not exceed twenty percent of the total budget for the International City to City Program.
The average of $3,500 will be budgeted for a standard inbound mission.
The average of $7,000 will be budgeted for a "reciprocal" inbound mission where there is an obligation to provide hotel and meals and these will be limited to three official delegates.
