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TIAC Chief Randy Williams Is Concerned


Higher gas prices could crimp summer travel

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Mar 12, 2008

A tourism official worries that soaring gas costs are going to keep consumers close to home this summer.

With oil trading at a record high Tuesday, and gas prices following, Tourism Industry Association of Canada chief executive Randy Williams is concerned.

"The impact is obviously negative," both because it costs tourist operators more and discourages consumers from taking trips, he said Tuesday.

The average price of regular fuel across Canada rose to $1.115 a litre, up by 2.7 cents over the previous week, according to a survey by Calgary-based MJ Ervin & Associates released Tuesday.

It's not just drivers who are affected. Fuel is a huge part of an airline's costs, and surcharges are common. Air Canada includes fuel surcharges on its domestic and U.S. flights in the base ticket price, but other airlines break it out.

On Wednesday, Swiss International Air Lines announced that it has raised its fuel surcharges.

Although oil prices eased slightly on Wednesday from Tuesday's record close of $108.75 US a barrel, analysts are forecasting more increases.

Some have already warned that with the summer driving season boosting gasoline demand, the average pump price could rise to $1.40 a litre within a few months.

cbc.ca

Higher gas prices could crimp summer travel
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