There is no specific data on tourists from countries other than the US. The by the numbers section does not list the money spent in Canada by Americans. In spite of the decline perhaps there is still a balance in Canada's favor. Who can tell the way the data is presented.
It is not surprising there is a decline given the fact that our dollars will soon be close to par. The tourist gurus of course think of the issue in terms of branding. We should up our image to an exotic but more expensive destination. However much of Canada is similar to the adjacent US states. Manitoba, Saskatchewan and North Dakota and part of Montana are quite similar except that Winnipeg is larger than any city in North Dakota. As mentioned as well worries about border crossing may be a factor.
On the matter of being cheap, friends who live near the border in Manitoba go to the US because they think it is cheap with our dollar so strong.
TOURISM: CANADA'S BAGGAGE
Boring and not-so cheap
MATT HARTLEY AND JOANNA SMITH
August 30, 2007
Fewer Americans made the trip north in the first three months of this year, making it the weakest first quarter for overnight visits from the U.S. in a decade.
According to data from Statistics Canada, there were fewer than 1.8-million overnight trips to Canada by Americans in the quarter, down 6.3 per cent from the same quarter of 2006. It was the eighth consecutive year-over-year quarterly decrease.
"I think we have a 'lack of an image' problem," said Mark Weisbarth, president of Due North Communications, a Toronto advertising agency. "I think we are just not seen as exotic or interesting in the way that other countries are."
Martin Beauvais, creative director at Toronto ad firm Zig Inc., said Canada's image problem lies in not being expensive enough.
"We're probably in their minds a cheap place to go, or a cheap alternative to the States, which is terrible," he said. "You want to go to London, you want to go to Paris ... you go to Canada because it's cheap."
Gas prices were only slightly higher in the first quarter compared with the same period in 2006, according to the report.
Some said the confusion over passport rules may have contributed to the decrease.
Since January, anyone flying between the U.S. and Canada has been required to carry a passport. Although the law doesn't apply to those travelling by car, experts suggested many thought it did.Howard Blank is the vice-president of Richmond, B.C.-based Great Canadian Gaming Corp., which owns 18 casinos and race tracks across Canada, many within driving distance of the U.S. border.
"We have noticed the U.S. visitor has gone down while some of the other countries' visitors have either remained the same or gone up," he said. "I think that is all due to the fact that many U.S. visitors are worried about the border, and passports and identification whereas in the past it was basically show your driver's licence and you're in."
And now that the Canadian dollar is trading closer to par with its American counterpart, U.S. travellers aren't getting as much bang for their buck as they once did. "It wasn't five years ago that if you were an American coming up to Canada, fundamentally you could stay two nights and the third night was free when the dollar was trading at 66 cents," said Tony Pollard, president of the Hotel Association of Canada. "Now the dollar is 94 cents and it doesn't make any difference any more."
Of the10 states that supply the most overnight travellers to Canada, eight sent fewer than last year. Michigan travellers posted the largest decrease with 16.9 per cent fewer overnight trips in the first quarter compared with the same period in 2006.
Christine Melnyk is the general manager of Quality Suites Downtown hotel in Windsor, located just across the Detroit River from Michigan.
"Our numbers are down, particularly earlier this year when I think there was confusion about the passport issue," she said. "January and February were very soft for this market. There's still a fairly high level of confusion on the passport issue."
American spending in Canada was down 5 per cent compared with the first quarter of 2006, at an estimated $915-million.
Real Robichaud, executive director of the Tourism Industry Association of New Brunswick, said the Atlantic provinces have seen fewer Americans on their streets over the past three or four years.
"Certainly there's the exchange rate," he said. "Price of gas is another reason, but you also have the security aspect."
Part of the problem is that Americans typically travel less while they're at war, he said.
*****
By the numbers
3.6 million
Number of overnight trips by Canadians to the U.S. in the first quarter of 2007, up 4.8 per cent from the same period last year.
$3-billion
Amount of money Canadians spent in the U.S. in the first quarter of 2007, up 5 per cent from the same period last year.
$10-billion
Amount of money Canadians spent in the U.S. in 2006, up 7.3 per cent from the previous year.
1 million
Number of overnight trips by Canadians to Florida - the most popular state to visit - in the first quarter of 2007, up 14 per cent.
$1-billion
Amount of money Canadians spent in Florida in the first quarter of 2007, up 10 per cent from the previous year.
Showing posts with label Canada tourism. Show all posts
Showing posts with label Canada tourism. Show all posts
Thursday, August 30, 2007
Tuesday, February 27, 2007
Foreign visitors down in Canada
One factor not noted is that the Mad Cow Disease regulations impact on hunters. They cannot take their kill of deer, elk, etc. back to the US. I did not realise that there was a problem with lineups at the border. Surely the same is true of Canadians going into the US but their numbers are up. I imagine that the strength of the looney is a big factor.
Canada would probably be wise to try to diversify the tourist market to attract people from Asia and other areas. Americans can easily find the same sort of territory and attractions within the US without travel to Canada.
In Depth
Economy
Where are the visitors?
Last Updated February 26, 2007
CBC News
As the world's tourist industry continues growing, Canada's is shrinking. (CBC) The UN's World Tourist Organization called 2006 a record year for tourism. With 842 million arrivals and a growth rate of 4.5 per cent, the industry continues a four-year streak of sustained growth.
Africa's rate of growth was nearly twice the world rate, at 8.1 per cent. Asia and Europe also posted strong results. Despite a violent 2006, even the Middle East was on par with the world growth rate.
So, how did Canada fare?
Well … it's down 4.1 per cent.
Even more alarming is that, as the world's tourist industry continues growing, Canada's is shrinking. After attracting a record 49,055,000 travellers in 1999, the numbers have been steadily declining. Whether it's same-day trips from the U.S. or travellers from overseas, there's a problem in Canada's multi-billion dollar tourist industry.
Foreign visitors spend about $17 billion a year in Canada, most of that by Americans. Since 1999, the U.S. has typically made up about 90 per cent of all Canada's inbound travellers. While that percentage hasn't changed much, the number of overall visits remains down. Ontario saw the biggest declines, with 10 per cent fewer U.S. entries than in 2005, but Quebec and super-scenic British Columbia weren't far behind.
"I think that international travel habits are changing," says Melanie Scott, editor of WHERE magazine. "People are going further afield. People are traveling to more exotic locations but I think in terms of consistency, yes, we haven’t had the huge numbers we used to have before."
American visits to Canada continued declining in 2006. Same-day car trips saw the biggest drop, hitting their lowest level since 1972.
A study done for the Canadian Tourism Commission in early 2006 estimates that the drop in U.S. visitors has cost Canada $1.2 billion since 2002.
Conversely, more and more Canadians are travelling south of the border. The numbers are up only slightly, but it means a widening gap in tourism spending. Less American spending here versus more Canadian spending in the U.S. created a record $7.2 billion dollar travel deficit in 2006.
What's keeping them away?
So, what's going on? Statistics Canada has advanced several reasons to explain the growing absence of U.S. travellers. The main ones include:
The high Canadian dollar: Canada just isn't the bargain it was when the loonie was worth only 62 cents US in early 2002. Then, a U.S. greenback was worth $1.61 Canadian. Almost five years later, that premium had shrunk to $1.12.
High gasoline costs: Gas prices have soared in the past few years. In the spring of 1999, a U.S. motorist was paying about 90 cents for each U.S. gallon. By the spring of 2004, it was $2. By the summer of 2006, the gas bill had reached $3 per gallon.
Increased border security: In the immediate aftermath of the Sept. 11 attacks, Americans stayed home. But Canada managed to pick up some market share, because a road trip to Canada after the attacks in 2001 was perceived to be a safer option that flying to Europe. That boom lasted only until 2002, however. After that, Americans became increasingly reluctant to head north. Tougher border security measures put in place in recent years have led to often long lines at border crossings. As well, the perception of big delays and hassles gets a lot of play in U.S. border states.
Scott says there's no question that security issues are a factor, especially in the case of same-day car travel across the border.
"Cross-border security is the biggest [issue] because people hear about cars waiting for hours at the border and it discourages them," she says. "Without a doubt, that would be a contributing factor."
Tougher border security measures put in place in recent years have led to often long lines at border crossings. (CBC) New developments may only exacerbate the problem. As U.S. passport regulations tighten, parties on both sides of the border are growing concerned over the potential impact on cross-border tourism.
The Conference Board of Canada cautioned that the rule changes could cost Canada $3.6 billion in lost tourism revenue and 14 million U.S. visitors over the five-year period ending in 2010.
Not promoting Canada to foreign tourists?
Other reasons for the decline have been put forward. The 2003 SARS (severe acute respiratory syndrome) outbreak garnered widespread media coverage in the United States and led to many cancelled conventions in Canada. Visits to the hardest-hit city, Toronto, fell noticeably that year.
Some suggest that there's a lot of confusion in the American public over when new border documentation rules will kick in and how severe they will be (passports or new "smart cards"). Only 26 per cent of Americans have a passport; the Canadian figure is 40 per cent.
But others suggest that some of the blame lies closer to home.
The Tourism Industry Association of Canada says we aren't doing nearly enough to promote Canada as a tourist destination. And the budget of the Canadian Tourism Commission has been cut at a time when many other countries have been rapidly increasing their marketing efforts aimed at foreign tourists.
The commission estimates that each dollar spent on sales and marketing in North America produces $10 in tourism revenue.
Taxing government
Federal cost-cutting plans may have played a part in the problems facing the industry. In 2006, the government repealed the Visitor Rebate Program (VRP), a tax refund once available to tourists.
Then-treasury board president John Baird defended the move, saying only three per cent of eligible travelers actually applied for the rebate.
Responding to the government's decision to axe the VRP, the Tourism Industry Association of Canada issued a press release condemning the decision.
"This shortsighted fiscal policy will result in a net loss of $46 million in government tax revenue and the loss of over 5,700 jobs in the tourism sector," it read.
It further argued that, although cutting the program saved $79 million, its removal would create a $239 million loss in GDP.
Scott says Baird's argument for cutting the program is a valid one, but questions the logic of tourism budget cuts.
"To slash the tourism budget right now is not a good idea," she argues. "I wouldn't say we're in recovery, but we have the potential to have an uphill swing and we need to ride that very carefully."
Encouraging signs
But all is not lost for the Canadian tourist industry. One encouraging trend is that as some markets are declining, others are on the rise. Although less American tourists are coming to Canada, the industry is seeing signs of increased numbers from growing overseas markets. In fact, Scott predicts one particular country will become a major market for Canada's tourist industry.
"The next big wave for Canada is going to be the Chinese travel industry because the [Chinese] borders have opened up," she says. "My prediction is that we'll have a huge influx of Chinese tourists coming here. The numbers coming from Asia could well surpass any numbers we ever had coming from the U.S. by a long shot."
Scott also foresees long-term growth from new overseas markets.
"The tourism base is going to broaden in terms of where people are coming from and I think it's going to steadily increase," she says.
Despite the dropping numbers of foreign tourists, Canadians are doing their part to keep the domestic tourist industry in the black. According to Statistics Canada, domestic tourism was on the rise in 2006 and domestic tourist spending went up in the third quarter of 2006. Tourism also created 663,500 jobs in that same period
Canada would probably be wise to try to diversify the tourist market to attract people from Asia and other areas. Americans can easily find the same sort of territory and attractions within the US without travel to Canada.
In Depth
Economy
Where are the visitors?
Last Updated February 26, 2007
CBC News
As the world's tourist industry continues growing, Canada's is shrinking. (CBC) The UN's World Tourist Organization called 2006 a record year for tourism. With 842 million arrivals and a growth rate of 4.5 per cent, the industry continues a four-year streak of sustained growth.
Africa's rate of growth was nearly twice the world rate, at 8.1 per cent. Asia and Europe also posted strong results. Despite a violent 2006, even the Middle East was on par with the world growth rate.
So, how did Canada fare?
Well … it's down 4.1 per cent.
Even more alarming is that, as the world's tourist industry continues growing, Canada's is shrinking. After attracting a record 49,055,000 travellers in 1999, the numbers have been steadily declining. Whether it's same-day trips from the U.S. or travellers from overseas, there's a problem in Canada's multi-billion dollar tourist industry.
Foreign visitors spend about $17 billion a year in Canada, most of that by Americans. Since 1999, the U.S. has typically made up about 90 per cent of all Canada's inbound travellers. While that percentage hasn't changed much, the number of overall visits remains down. Ontario saw the biggest declines, with 10 per cent fewer U.S. entries than in 2005, but Quebec and super-scenic British Columbia weren't far behind.
"I think that international travel habits are changing," says Melanie Scott, editor of WHERE magazine. "People are going further afield. People are traveling to more exotic locations but I think in terms of consistency, yes, we haven’t had the huge numbers we used to have before."
American visits to Canada continued declining in 2006. Same-day car trips saw the biggest drop, hitting their lowest level since 1972.
A study done for the Canadian Tourism Commission in early 2006 estimates that the drop in U.S. visitors has cost Canada $1.2 billion since 2002.
Conversely, more and more Canadians are travelling south of the border. The numbers are up only slightly, but it means a widening gap in tourism spending. Less American spending here versus more Canadian spending in the U.S. created a record $7.2 billion dollar travel deficit in 2006.
What's keeping them away?
So, what's going on? Statistics Canada has advanced several reasons to explain the growing absence of U.S. travellers. The main ones include:
The high Canadian dollar: Canada just isn't the bargain it was when the loonie was worth only 62 cents US in early 2002. Then, a U.S. greenback was worth $1.61 Canadian. Almost five years later, that premium had shrunk to $1.12.
High gasoline costs: Gas prices have soared in the past few years. In the spring of 1999, a U.S. motorist was paying about 90 cents for each U.S. gallon. By the spring of 2004, it was $2. By the summer of 2006, the gas bill had reached $3 per gallon.
Increased border security: In the immediate aftermath of the Sept. 11 attacks, Americans stayed home. But Canada managed to pick up some market share, because a road trip to Canada after the attacks in 2001 was perceived to be a safer option that flying to Europe. That boom lasted only until 2002, however. After that, Americans became increasingly reluctant to head north. Tougher border security measures put in place in recent years have led to often long lines at border crossings. As well, the perception of big delays and hassles gets a lot of play in U.S. border states.
Scott says there's no question that security issues are a factor, especially in the case of same-day car travel across the border.
"Cross-border security is the biggest [issue] because people hear about cars waiting for hours at the border and it discourages them," she says. "Without a doubt, that would be a contributing factor."
Tougher border security measures put in place in recent years have led to often long lines at border crossings. (CBC) New developments may only exacerbate the problem. As U.S. passport regulations tighten, parties on both sides of the border are growing concerned over the potential impact on cross-border tourism.
The Conference Board of Canada cautioned that the rule changes could cost Canada $3.6 billion in lost tourism revenue and 14 million U.S. visitors over the five-year period ending in 2010.
Not promoting Canada to foreign tourists?
Other reasons for the decline have been put forward. The 2003 SARS (severe acute respiratory syndrome) outbreak garnered widespread media coverage in the United States and led to many cancelled conventions in Canada. Visits to the hardest-hit city, Toronto, fell noticeably that year.
Some suggest that there's a lot of confusion in the American public over when new border documentation rules will kick in and how severe they will be (passports or new "smart cards"). Only 26 per cent of Americans have a passport; the Canadian figure is 40 per cent.
But others suggest that some of the blame lies closer to home.
The Tourism Industry Association of Canada says we aren't doing nearly enough to promote Canada as a tourist destination. And the budget of the Canadian Tourism Commission has been cut at a time when many other countries have been rapidly increasing their marketing efforts aimed at foreign tourists.
The commission estimates that each dollar spent on sales and marketing in North America produces $10 in tourism revenue.
Taxing government
Federal cost-cutting plans may have played a part in the problems facing the industry. In 2006, the government repealed the Visitor Rebate Program (VRP), a tax refund once available to tourists.
Then-treasury board president John Baird defended the move, saying only three per cent of eligible travelers actually applied for the rebate.
Responding to the government's decision to axe the VRP, the Tourism Industry Association of Canada issued a press release condemning the decision.
"This shortsighted fiscal policy will result in a net loss of $46 million in government tax revenue and the loss of over 5,700 jobs in the tourism sector," it read.
It further argued that, although cutting the program saved $79 million, its removal would create a $239 million loss in GDP.
Scott says Baird's argument for cutting the program is a valid one, but questions the logic of tourism budget cuts.
"To slash the tourism budget right now is not a good idea," she argues. "I wouldn't say we're in recovery, but we have the potential to have an uphill swing and we need to ride that very carefully."
Encouraging signs
But all is not lost for the Canadian tourist industry. One encouraging trend is that as some markets are declining, others are on the rise. Although less American tourists are coming to Canada, the industry is seeing signs of increased numbers from growing overseas markets. In fact, Scott predicts one particular country will become a major market for Canada's tourist industry.
"The next big wave for Canada is going to be the Chinese travel industry because the [Chinese] borders have opened up," she says. "My prediction is that we'll have a huge influx of Chinese tourists coming here. The numbers coming from Asia could well surpass any numbers we ever had coming from the U.S. by a long shot."
Scott also foresees long-term growth from new overseas markets.
"The tourism base is going to broaden in terms of where people are coming from and I think it's going to steadily increase," she says.
Despite the dropping numbers of foreign tourists, Canadians are doing their part to keep the domestic tourist industry in the black. According to Statistics Canada, domestic tourism was on the rise in 2006 and domestic tourist spending went up in the third quarter of 2006. Tourism also created 663,500 jobs in that same period
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