Manitoba
Printer Friendly

Entrepreneurship, Training and Trade

International Trade Strategy for Manitoba
NextPrepared by The Council on International Trade

Section II Current State of Trade and Exports in Manitoba

5) Opportunities for Leverage

An effective international trade strategy will build upon the existing capabilities, previous successes and unique characteristics of Manitoba. Although not exhaustive of all Manitoba’s unique capabilities and characteristics, the following are several examples of how our existing activities and characteristics can be leveraged in an international trade strategy.

a.

Education 10
Manitoba has had an international presence in education for many years. The trade contacts and networks that have developed through international students over the years have – and will continue to have – an important role in the development of the province’s international trade. International students contribute to trade capability in several ways. Not only do they assist in developing an international perspective in their educational programs, but they also enhance Manitoba’s profile internationally and help open doors for future trade and investment. International students also can support Manitoba’s immigration strategy either through encouraging immigration from their home country or by immigrating themselves. The number of international students in Manitoba has more than doubled in the last 10 years, from 2,694 in 2000 to 5,383 in 2010. China is the largest source of international students with 33 per cent in 2010. China, Korea and India accounted for 48 per cent of international students in Manitoba in 2010. It is reported that the total expenditures of international students in Manitoba in 2008 was $115.8 million.11

Demand for international education in Canada is projected to grow from 1.9 million students in 2008 to 7.2 million by 2025.12 If Canada and Manitoba maintained their current share of the world market, the projected total expenditures in Manitoba by international students in 2025 could be $500 million, up from the current level of $115 million. The same data projected over the next five years suggests that international student expenditures in Manitoba could be an additional $75 to $100 million by 2016. The potential to grow Manitoba’s education exports is clear when viewed as a percentage of all international students in Canada. In 2008, Manitoba’s international student population was only 2.7 per cent of Canada’s total.13

b.

Immigration
Manitoba’s effective immigration policies and practices have been instrumental in not only increasing the province’s population base, but also the strategic nature of these policies has supported foreign investment, increased the skilled labour force, and significantly enhanced economic development and language diversity. One example is the Provincial Nominee Program for Business (PNP-B), through which Manitoba has been attracting international entrepreneurs and investors to the province. These business immigrants are both building the international nature of Manitoba’s economy and contributing to the province’s economic development. As indicated in Table 4, Manitoba’s net immigration increased by 340 per cent from 1996 to 2010, one of the highest rates of increase in Canada. The effectiveness of Manitoba’s immigration strategy can be attributed to the many stakeholders who worked collaboratively to integrate the newcomers into their new culture. This "best practice" methodology has clear implications for the Council as it develops its collaborative approach to international trade.

Further support for the proposition that immigration can be a stimulus to Manitoba trade is the finding nationally that among established exporters, immigrants who have resided in Canada for less than five years are disproportionately likely to be the owners of exporting firms.14 Given that these firms would also be SMEs, it follows that targeted immigration policies could be a factor in increasing the number of Manitoba SMEs engaging in international trade.

Table 4: Manitoba’s International Immigration and Migration 1996-2010
  IN OUT NET
1996 3,928 1,556 2,372
1997
3,715 1,871 1,844
1998
3,004 1,757 1,247
1999
3,725 1,651 2,074
2000
4,647 1,648 2,999
2001
4,592 1,428 3,164
2002
4,615 1,329 3,286
2003
6,503 1,237 5,266
2004 7,426 1,527 5,899
2005 8,097 1,704 6,393
2006 10,047 1,839 8,208
2007 10,955 2,002 8,953
2008 11,219 1,989 9,230
2009 13,520 2,031 11,489
2010 15,805 2,045 13,760
2001-2010 11,158 397 10,761
%change 243.0% 27.8% 340.1%
Source: Manitoba Bureau of Statistics

Back to the top

c. Tourism
Like education, tourism in Manitoba already has a presence internationally. In 2009, Manitoba’s tourism export revenue was $466.7 million.15 Revenue from international tourism in 2009 was $187 million, with $47.3 million coming from overseas visitors. Visitors from the United States are the largest source of international tourism with spending of $140 million in 2009, or almost 75 per cent of the total international tourism expenditures.16

The majority of tourism revenues from countries outside North America in 2009 were divided between the United Kingdom (16.6 per cent), Europe (50.3 per cent), Australia (8.8 per cent) and Asia (11.8 per cent).17 Manitoba’s international tourism is a growing export as a stand-alone product. The challenge for the Council is to develop ways of leveraging this growing international market to increase other types of international trade.
d.

Investment
Investment is an integral part of Manitoba’s trade strategy. Increased foreign direct investment by international companies will make a tremendous impact on job creation and income growth. This strategy will leverage the increasing focus on investment attraction through co-ordinating activities to ensure all opportunities are pursued. CentrePort Canada represents a unique opportunity to attract investment interest among global companies that can benefit from the transportation advantage CentrePort represents. Local companies that import significant quantities from specific international organizations represent a potential investment opportunity.

Our very successful Provincial Nominee Program for Business (PNP-B) is one example of how an effective immigration strategy might be used to attract foreign capital or venture capital pools. Manitoba has attractive investment opportunities today that will increase with an expanding economy. Recent external investments in real estate, retailing and manufacturing are evidence of this trend. We have to position ourselves to take advantage of the foreign capital that is currently "on the sidelines" looking for investment opportunities. Through Yes! Winnipeg and the integrated and collaborative strategies of other Council member organizations, the potential for increasing investment in Manitoba will be greatly enhanced. This trade strategy will be a platform for developing methods for creating synergies involving all these factors.


10 Although the service is offered in Manitoba, education is considered an export
11Economic Impact of International Education in Canada, report to Foreign Affairs and
    International Trade Canada, RKA, Inc., July 2009.
12RKA report
13 RKA report
14 SME Financing Data Initiative, Canadian SME Exporters, Government of Canada, January 2008,      www.sme-fdi.gc.ca/eic/site/sme_fdi-prf_pme.nsf/eng/02116.html
15 Source: Travel Manitoba. The total includes spending by visitors from other Provinces.
16 Source: Travel Manitoba.
17 Statistics Canada – International Travel Survey, 2009.

Back to the top