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Drastic drop in Canadian tourism numbers
The Canadian Chamber of Commerce (CoC) last week released a discussion paper noting its deep concerns for the flagging tourism industry – nation-wide.
In short – Canada has fallen from being traditionally in the globe’s top 10 tourism destinations to being close to falling out of the top 20.
“For six decades Canada has been one of the world’s premier tourism locations. Today, the industry contributes $84.8 billion to the economy and drives private sector growth and jobs in all regions of the country. It is also a sector that could contribute even more to the Canadian economy, given the right policy environment,” the CoC discussion paper begins.
“But while the global market for tourism is growing at an astonishing rate, Canada’s share is shrinking. Just a decade ago, Canada was in the top 10 destinations in international arrivals but has slipped and is now in danger of falling out of the top 20.
“Canada’s decline is not because it has suddenly become less beautiful, engaging or safe—characteristics that have always drawn visitors here. Rather, Canada has failed to respond to changing realities. It has failed to respect the growing choices travellers have, and it has failed to fight for its future,” the CoC outlines.
The “drastic drop” in a sector that is critical to the economies of every region of Canada, is a worrisome problem that needs to be immediately addressed, the CoC warns.
“Although the rising Canadian dollar and the U.S. recession contributed to this trend, it began well before those factors emerged, and it is continuing today. The truth is Canada has chosen not to compete effectively in this sector, while other countries are fighting to win ever-larger shares of our market. Together with our allies in the Tourism Industry Association of Canada, the Canadian Chamber has set out to make the public and politicians aware of this trend, and to urge policy changes to address it.”
According to CoC information in the discussion paper, Canada was ranked seventh in the world in 2002, 15th in 2008 and 16th in 2012.
Traditional tourism lesser lights such as the Russian Federation – currently the chief ‘no go’ zone in the world for those with an alternative sexual lifestyle, and the Ukraine have passed Canada in recent years.
France remains the undisputed champ of world tourism, while America, Spain, China and Italy are still the closest runners up, with the United Kingdom, Germany, Mexico and Turkey all holding their places.
Among the ways the CoC suggests the tourism industry could be improved are: “better marketing to ensure demand, especially in emerging economies; more cost competitiveness in our transportation sector to allow visitors to come to Canada, less government hassle for visitors, especially in their visa applications and more support for attractions which bring people to Canada.”
America remains Canada’s bread and butter when it comes to tourism but statistics show interest has alarmingly waned in the past dozen years.
“The U.S. market is overwhelmingly the largest source market for Canadian tourism, generating close to 75% of all overnight trips in 2012. It is also the market that has suffered the most serious decline with a loss of 4.4 million American visitors per year since 2002. It is tempting to attribute this decline to the recession of 2008/09 and the strengthening of the Canadian dollar. But Canada’s attractiveness to U.S. customers has been waning since 2001, long before those factors were significant,” the CoC discussion paper cites.
A major cause for the decline, the CoC points out, is Canada’s “exorbitant” airfares.
“Canada’s brand is consistently in the top three worldwide with high interest from travellers. Yet, despite its stellar reputation, tourism in Canada is still punching below its weight. According to the World Economic Forum, our travel and tourism competitiveness ranking has plummeted from fifth in 2009 to eighth in 2013,” the CoC states.
“Tellingly, we were ranked first for airport infrastructure but 124th (out of 140) for overall price competitiveness. So while we have excellent flight frequency, choice and availability, flying in Canada comes at an exorbitant rate. An outdated aviation policy that creates competitive barriers and an underfunded marketing strategy are preventing us from converting potential tourists to consumers.”
A failure to communicate what Canada has to offer to travelers is another reason for the drop off.
“Canada is also lagging behind its competitors in terms of marketing investment. While Canada cut its marketing budget by 20% to $58 million, forcing the Canadian Tourism Commission to abandon lucrative markets like the U.S., other countries are investing aggressively in marketing,” the CoC suggests.
“The U.S. is aggressively marketing to Canadians, and countries such as Ireland, Mexico, Australia, New Zealand and India have all increased their tourism marketing budgets and subsequently their arrivals.”
The CoC’s concerns are not lost to regional tourism operators or chambers of commerce.
Sarah Parry, Fernie Chamber of Commerce executive director circulated the CoC discussion paper to members last week, ensuring they understand what is happening.
“Over the past couple of months the Highway 3 Visitor Centre has seen a 27% increase on last year’s visitor and party numbers. The facility we have here; whilst not the most attractive is the ‘gateway’ to Fernie and all we have to offer. I am confident that my staff, including summer students, offer outstanding customer service and can be relied upon to promote Fernie,” Parry stated.
“However, we only have the chance to interact with people face-to-face or on the telephone if they choose to contact us or come in the Visitor Centre(s). Or decide to come to Canada in the first place. With decreasing numbers of travellers it is even more important to ensure that we all understand that Canada overall is experiencing a drastic drop in people selecting Canada.
“The chamber will continue to work on issues and also we will be making our members, municipality and Provincial Government officials aware of our concerns and the details attached in these reports,” Parry ensured.
See the discussion paper here: Restoring Canadian Tourism,
Ian Cobb/e-KNOW