R.O.A.R.
R.O.A.R.: The impending crisis in the Canadian tourism industry
I am loathe to begin in the "if it bleeds it leads" mode, but this time, it may be appropriate, especially since the media release from the Tourism Industry Association of Canada (TIAC) leads with the phrase "on the brink of crisis."
So stay calm folks. Don't panic. Hmmm ... if anyone actually said that to me, I think the first thing I might do is get a tad excited. I might not panic, but my level of "concern" would likely be at or above "level orange." However, the first question I would ask is, "Are we in a crisis or not?" What's this "on the brink" business? How can we be just a little bit pregnant?
There is probably a lesson here for any travel and tourism destination around the world. So I'll begin with the big picture — starting with the world.
According to the United Nations World Tourism Organization (UNWTO) Barometer, the travel and tourism industry worldwide is in very good shape. As a matter of fact, in 2007 international tourist "arrivals" (the number of visitors to destinations outside their home countries) grew by an estimated six per cent. This is a new record; nearly 900 million travelers. The UNWTO points out that this is very significant because the 800 million mark was reached only two years earlier, and the figure represents nearly 52 million more arrivals than in 2006. Furthermore, world tourism had a fourth consecutive year of growth in 2007, above and beyond the long-term forecast of 4.1 percent.
So who's getting all this business? I'll get to that in a moment; but first we must remember that travel and tourism is an industry that has (as the TIAC points out) a direct impact on national, regional, and local economies. The guy selling hot dogs outside the museum in beautiful downtown Canada depends on foreign visitors. I have heard more than once that the travel and tourism industry is the largest on the planet; but have often wondered if that stat was accurate. However, if you take into consideration every business that profits in some way from what Professor John Adams of University College, London has termed the global "hypermobility" (brought about by societal changes in the latter part of the 20th century) then it makes sense. Air travel of course is a major factor.
In the hypermobile 21st century, however, it isn't all good news. More people may be going more places, but the polarization of rich and poor is increasing; destinations everywhere (and the communities within them) are facing dramatic (often serious) social and environmental changes. And the infrastructures that support travel and tourism are not necessarily moving ahead at the same rate.
So who is getting all the travel business? Well, not Canada. This may surprise you but of all the travel and tourism regions defined by the UNWTO, the Middle East is in the lead and is emerging as a strong (not the strongest) tourism destination. Of the 52 million arrivals estimated by the UNWTO for 2007, Europe got 19 million; Asia and the Pacific 17 million; but only six million for the Americas! The Middle East, by the way, got five million.
So what's Canada doing wrong? Well maybe nothing. After all, who wouldn't want to visit Canada? C'mon! It's a clean, safe country, with great destinations. What world-class destination can beat Banff National Park ... or Montréal's Festival international de jazz? And besides, Canadians are just so darn nice. Like one of our national symbols, the beaver (castor canadensis), we are industrious, clean-living, non-confrontational, fully adapted to the wild, and excellent house-builders. We also have excellent dental hygiene and mind our own business. But on the other hand, maybe it's just a whole new ball game and we have gotten rather too complacent about Canada as a preferred destination.
That seems to be an underlying theme in the TIAC media release. According to it, "The Canadian tourism industry is on the precipice of an unprecedented decline...." and this could have "a massive impact on the 1.6 million Canadians whose jobs depend on this sector." In the release, Randy Williams, President and CEO of TIAC, points to "structural burdens on our industry." While calling on governments at all levels in Canada to implement urgent action, he does concede that there are economic factors that governments cannot control. The main two at the moment are (a) fuel prices and (b) a strong Canadian dollar.
Sheesh! Most of the world is dealing with high gasoline prices; but after so many years of a weak Canadian dollar, we finally reach par with the U.S. buck and we end up shooting ourselves in the foot because we are no longer a cheap and accessible destination for Americans — our best customers — who, by the way, are also trolling big time for tourist dollars/euros/yen/whatever by implementing patriotic "Buy American" tourism marketing campaigns.
The TIAC media release goes on to identify our home-grown governments as the bad guys, declaring that "Governments have traditionally neglected the industry, and have tended to regard tourism as a source of taxation dollars." According to TIAC, tourism is an "export industry" that contributes $20 billion annually to government tax revenues. And get this. TIAC says that when it comes to our tourism export products, we have ended up with a deficit in 2007 of $10.3 billion! I have some difficulty getting my head around this because even though I can see how Canadian tourism is an export product, the customers have to come here to get it. It's not as if they can pop down to the local megamall or convenience store and pick up some Canadiana.
And even though TIAC is urging Canadian governments and the whole Canadian travel and tourism industry itself to get with the new global marketing realities, once again they point out that geopolitics raises its ugly head.
In the media release (under the bolded subhead Access to Canada), they point out, "One example of competing on an even playing field is the lack of agreement on Approved Destination Status with China, the fastest growing outbound market in the world." This too is ironic given that according to the latest Canadian census, Chinese has become the third most used language in Canada.
So, what to do? Well TIAC is calling for the following:
Product Animation.
By this they mean better marketing, or in their words, "... we need to ensure that there are persuasive and compelling reasons to visit our country... and that the products that we currently offer are world-class ... [and] must be enhanced continually to meet changing market trends....
Better Access to Canada.
The main issue here is the "unsustainable cost burden" facing the air travel sector, i.e. all those additional taxes and fuel surcharges added to your airline ticket. TIAC is also calling for Open Skies/bilateral agreements with key countries that represent our best markets. They also think our governments (led I assume by the federal government) should get its act together and get us properly designated for the emerging leisure market in China. (The US and even Trinidad and Tobago have such status.)
New Tourism Products.
This also surprises me. What do we need more product for when we have so much sitting on the shelf. Well according to TIAC, we need "an investment climate conducive to public/private partnerships in the development of new tourism products ... to enable Canada to begin to compete with the new tourism products and services in emerging and rival destinations. I sure hope that doesn't mean more casinos or theme parks.
A National Tourism Strategy.
TIAC has already got the ball rolling in this regard within its own organization, and it has identified key themes and issues such as: sustainable tourism; carefully defining and differentiating between pleasure/leisure travel, business travel, and personal travel; aboriginal tourism; adventure tourism; agritourism; cultural and heritage tourism; ecotourism; learning and enrichment travel; nature-based travel; sport tourism; wellness tourism; wine/culinary tourism; winter tourism; spa tourism. Winter tourism? You bet! And Québec of course has been doing this very well for a long time. Mon pays, ce n'est pas un pays, c'est l'hiver!
Get the Americans!
Now TIAC has not specifically said this, but the Statistics Canada website tells me (surprise, surprise) that the United States of America is our biggest customer. With reference to our kissing cousins to the south, I need to draw your attention to the following stat from TIAC's Report on Canada's Tourism Competitiveness:
"Eighty-six percent of non-resident travel to Canada in 2006 was by visitors from the United States. However, compared to 2000, US visitation to Canada in 2007 has dropped 41 percent. Canada's travel deficit with the US has ballooned to $7.1 billion in 2007."
And apparently, because we now have a stronger dollar, Canadians are heading south of the border again in record numbers. This is, in part, because the US dollar has been devalued against other currencies around the world. And that means that visitors from outside North America are getting a lot more bang for their buck in the US.
You can't win!
So why can't non-North Americans get a bit of that bang north of the 49th parallel? January in Canada can be nice. You don't have to eat citrus all the time!
My fellow Canadians ... what shall we do to build a better "learning and enrichment travel" market. Suggestions please?
Comments
Hi,
I am a turkish canadian residing both in Istanbul and Montreal.I ama professional in tourism.I have been to Ukraine twice and loved it.I still dream about returning to Ukraine , maybe to visit Crimea this time.You have a lot to offer there.Only thing you need is a good government and better infrastructure...All the best,
Aydin
ondula@gmail.com
What is stopping Americans from coming to Canada? I think the change in our laws to block people with "Driving Under the Influence" records from crossing the border has a lot to do with it.
Do we want to change that? I don't.
I find it extremely interesting and ignorant, when the Alberta Economic Outlook 2009 spills positive beans on its so called "tourism forecast". Guess what - it will get worse, despite all this positive talk. How about talking to job seekers in the tourism industry. 38 applications - no job in the "stable" Alberta tourism market of the Rocky Mountains. Listen, I had a hotel for twelve years here. Only two years ago, there were some ten jobs for every application in the tourism industry. The reverse is worse, isn't it? Shouldn't that tell us something about declining occupancy and revenue?!
What can the Alberta government do? Nothing. Tourism was not one of its priorities in the past (I wrote several letters to then Premier Ralf Klein). And now - in economic hard times - tourism will be even less of an industry that interests politicians in "oil-Alberta".
My prediction: Put on your seat-belt, if will get much worse. Or does anyone truly believe we can run ads in these dire times to attract Europeans and Asians to visit us. They are fighting for survival as it is.
Maybe the only market that's left for the next years will be our national and provincial travelers. Give them some incentives to stay and travel Canada to keep this industry afloat during the wild ride ahead.
Many small businesses in the tourism industry - I fear - will however go under. And that will include many restaurants. During the boom years the market created too many restaurant seats and hotel rooms. We all wanted a piece of the tourism pie, including municipalities who collected much money during construction - and later far too much money in commercial property tax. And let's not forget the province, with its deregulation of energy, which crippled already then many tourism-related businesses by trippling their electricity and gas bill.
Guess what - it's over, we can't afford it any longer - unless we want to throw good money after bad money. Such fools we are not, hopefully.
Ursula Tillmann
Freelance Journalist
Canmore, Alberta
Systemic and institutional racism in the lilly- white Canadian Tourism industry is ONE of the reason American Tourism figures is falling like a Rock in the Great White North. The Canadian Tourism Commission does not spend a red cent targetting African Americans. If you go to their website you would think that their is not ONE single Black person in Canada, if you find a Black face, its a mix- race or light skin Black. The false image they give to the world is that its a white European country and Black folks dont REALLY live here so its safe to visit. The fact that Blacks have been in Canada since 1604, and that the Guide and interpreter to Samuel de Champlain, so called Founder of Quebec was a Black man name Mathieu De Costa seems to have escaped the lilly white marketing and advertising genuises at Canadian Tourism Commission. The Black Empire Loyalist, The Underground Railroad story, Sir James Douglas, The Founding Black Governor of British Columbia. Cowboy John Ware the Black Rancher and Cowboy who introduce ranching to Alberta and was the saviour of the Ukranians and Eastern Europeans recruited to keep Canada white in the late 1880's and given stolen Aboriginal land to settle. Now these good ole boys they act like they put the oil in the ground in Alberta and invented ranching in the Canadian West. The Black Nova Scotians who has gone thru hell in the Mississipi of the North, The aparthied like demolition of AfricVille in the City of Halifax in the 1960's, etc. The fact Black people is ONE of the "Founding Peoples" of Canada seems to be news to them. A friend of nine tried to contact CTC to introduce the African American tourism market to them he was ignored for 3 months and he says he still has not heard fron the Advertising Manager or the President of CTC despite his complaints. He finally heard from the marketing manager after he contacted the only Black person working there. Just to be told that they get 50 emails a day thats why his 5 emails and 3 voice mails messages was not returned.
I have heard of horror stories from Caribana visitors of racist cops with road blocks and spot checks on main arteries targetting Blacks and creating massive traffic jams on Yonge Street. I have heard of random stops and searches and arrests of Black visitors during the Caribana weekend. Screams of horror as Black visitors are dragged out of their cars and arrested by enraged redneck cops who dont want to be working Cariban weekend any way as it will mean been around 1.5 million Niggers.... There is no spot checks, blockades and socalled R.I.D.E. Programs during the 1 million?? people Gay Pride Weekend, or St. Patrick's Day when millions of drunk Irishmen is driving around Toronto and other urban centres. Thats OK because its a "White Thang"
Canada has a rich Black Heritage and Culture, from Oscar Peterson to The Black Empire Loyalist of the 1700's who's Blood & Sweat carved Toronto and South Western Ontario out of Bush. Dont tell that to the CTC geniuses and their ALL white ad agency buddies,.. the message they send to the hand full of Black Canadians in the Tourism industry, and Blacks in America, Caribbean and Africa is that we dont want your kind in OUR Country,. If we did we would advertise to you, we would do market research on you like we do for white gays, Asians, Mexicans, Europeans, etc. They advertise to every race but Black people. Not even Obama would be worthy of seeing an Ad in placed in Black media any where on this planet inviting him to visit Canada. I have attended Canadian /Provincial Tourism Conferences and seen Canadian Industry Leaders honoured with Lifetime Achievement Awards a few days after they have publicly made statements to the effect that they dont want African American visitors to come to Canada because they order the cheapest things on the Menu at his restaurant. This gentlemen is Chair, of the largest Convention facility in the Country... he felt comfortable enough to say this in front of his all white industry colleagues and buddies and a former Ontario Minister of Finance seeking advice from industry players on what to do about tourism in the Province of Ontario.. lets hope the Ontario Tourism Study Group does not take his advice eh?
Unless the CTC and other provincial tourism marketing agencies have enough respect and appreciation for Black Tourism and MC&IT business to have a conversation with us thru Black media, then Black Meeting Planners, tour operators, travel professional should re-think spending our hard earned dollars in their cities, province and Country. Despite plunging numbers CTC and the vast majority of CVB's in Canada still refuse to promote Canada and their destination directky to Black consumers or in the Black media. Canada does spend a red cent any where on this planet talking to Black people or Black Travel professionals in order to generate more Black visitors to the Great White North. This is a Country that goes around bragging about Diversity and Multiculturalism, which is a big Joke to Blacks who actually live in Canada. This is a country that spends $300 million dollars to build a so-called Museum of Human Rights in of all places Winnipeg, Manitoba, and did not give a red cent to acknowledge and celebrate the 400th Anniversary of Black Presence in Canada in 2004. The Feds and Province of Quebec gave a combined 200 million to French Canadians to celebrate the 400th anniversaty of the Founding of Quebec in 2007?. Not a cent for the Black Canadians who's kidnapped ancestors blood and sweat help founded and build early Quebec. I guess we dont count in their eyes.
The racists euro-centrics who run The Great White North Tourism Industry would rather the industry implode than invite Black people directly to visit Canada.... I guess they feel that the Blacks will want to stay for dinner if they are invited. They cant bring themselves to invite the Blacks!!..to their Home and Native Land!!
This is an issue and perception that TIAC, CTC should think about before they go around crying "CRISIS" and looking for a bail out from the 1.5 million Black Tax Payers of Canada.
Also The Black Tourism Industry in Canada wants to see equity of government investments in Black Cultural Heritage sites and destinations across Canada. From a National Museum of African Canadian History and Culture, to Afri-centric theme parks telling OUR stories and history, not HIS-story OUR story, the Greatest Story Never told, about Black people surviving and in some cases flourishing Against ALL ODDS in the Great White North and helping to build a Country called Canada. Over 400 years of Blood, Sweat and Tears, a story the great white geniuses at CTC and other tourism marketing agencies dont care about or simply do not want told. After all its NOT their story, its NOT their peoples story, its a story of Slaveships to Championships, some thing they know absolutely nothing about...eh?
Regards from Ukraine, well, from Odessa, that really had never considered a Ukraine. I meant to send a reply to Mr.Fisher and Mr.Copper-Smith, but the comment of Mr.Don Sherrie was so offencive that I can't resist
myself in a brief comment, Dear Mr.Don Sherrie, wait until NHL tournament come to your own town and there you will be treated the best possible way and free of charge, I am sure Canada will survive your absence...
Re. the article. I want to say so much. Our countries are far from each other in every meaning of this word, besides Ukraine being up to its ears in "gas". Our Commetee of Tourism makes the same issues about the product and the strategy. That only means that either they have no professionals or the country has no interest in developing tourism. We are living in a weird country and at this point it is anot a subject of discussion. Tourism should be the most flexible industry and if the Chinese or Middle East market shows the potential, face it! The immigrants will sneak in anyway, the corruption is everywhere. But Canada now behaves itself like another state of the US with their obsession of terrorism, which is ridiculous. Like Ukraine in many aspects Canada is a "fat and lasy" nation, that does not want to move an extra time to gain a litlle more that it already posesses. The only way to benefit is strong advertisement. Shouting and screaming on every corner, on each exhibition, bring Natives, show your heritage, but SHOW, TELL about it! Why America is everywhere? Why Aren't We? I have been to Canada several times. I adore your country, position yourself as an individual for Chirist's sake, you are not a US dominion! Show your identity to the world. We have to do the same, but unlike ours you have normal government. I have so much to share, so if you are interested, please respond
Great article.
I like Robert's comment on January 7th..."we've got the product...can't wait for some snow in the wintertime and well go there then!" We have to learn to "tell our story" better, use the Internet more effectively to share these stories, and find ways to get out of "mass tourism" and into more niche market tourism. Niche does not necessarily mean "high end". It means offering the right products for the right travelers in the right places". And, today's travelers are looking for different.
See the following links for some different ideas:
WINTER EXPERIENCE http://www.earthrhythms.ca/manitoba_vacations/rminfusions/riding_mountai...
RIDING MOUNTAIN as a destination for winter experiences
http://experienceridingmountain.com/
TOURISM CAFE
http://www.tourismcafe.ca/
for different ideas about enrichment, experiential and learning experiences.
Celes Davar, Earth Rhythms
www.earthrhythms.ca
Having worked in the Tourism industry for some years I have long been an advocate of Canada offering much to the well-educated traveller for their all year round holiday needs. HOWEVER, I use the words well-educated purposefully as in my opinion Canada does not do enough to attract those that do not understand that Canada is so much more than another ‘State’ across the US border. Before anyone starts to recite the millions of Canadian dollars spent on consumer advertising I will explain what I mean.
What is needed is a concerted and sustained marketing campaign focussing on Canada – not British Columbia or Quebec – Vancouver or Montreal but ALL of CANADA. Quite simply until the individual Provinces stop competing with each other for ‘business’ and work together for the good of Canada the consumer will never understand what Canada has to offer. Sure BC may benefit the most to start off with but once the traveller is IN Canada then they will soon learn what else there is to see and do and will want to come back. It is not the amount of marketing dollars being spent but how and where it is being spent and for what overall purpose. I remember seeing a TV campaign that had been produced for one Province and when I suggested that it should be used for all of Canada the reply I received was ‘Hands off this belongs to XXXXX’ –this attitude needs to change and quickly.
The "on the brink of crisis" phrase was used June 2, 2008. Not exactly new news. Since then TIAC's position has likely been affected by worsening conditions across the global economy.
Many Americans travelled over the border for all the right reasons, friendliness, easy going open spaces, ease of travel, etc.. However such a small percentage have passports they will now be barred from doing this. I feel a temporary "visa paper" valid for short stays should be negotiated with the USA Government that would allow passport free travel between the two countries. It works in other parts of the World.
For all the discussion and editorial about the world markets, there is still so much prosperity. Just look at the glass half full and focus on all the possibility and help create it so. Egypt had remained a key vacation of choice, where it is many people's dream to one day see the magnificent temples, tombs, monasteries as well as the spectacular Red Sea, Nile River and Desert! Here's to an incredible 2009!
The Australian tourism industry faces the same kind of issues as Canada.
The global economis crises has to effect the propensity to travel, especially long haul, so a closer look at the short haul potential markets is paramount.
The article fails to address Canada's own intrastate travel potential. We, in Australia, recognise, very importantly, that our own people should be encouraged to experience the delights of their own country before venturing overseas. In a year of uncertainty such as this one will be, more effort than ever will be put into our own back yard to keep the tourism revenue up via Aussies themselves.
The market which will continue to rise expotentially is China. Failure to recognise this will be at the local tourism industry's peril.
Ok - So we make 3 to 4 trips across the across the boarder for hockey tournaments each year into places like Sarnia, Missisauga, Toronto, Ottawa and most recently Chatham. We stay at mid priced hotels like Courtyard by Marriott. Look paying close to US$40 for a case of beer is riduculas - Restruant service is an oxymoron in Toronto and Mississauga - There are 20 or so workers in a Boston Pizza but can take you 2 hours to get a pie and a beer - (How long u guys get for a lunch break up there?) So being the ugly american I ask the young workers - there is a general disdain for us there. Ok thats fine I can absorb that - but doesnt make me want to come back. Then team pays $600/ tournament and get held up at the door to pay $20 US cover charge (Didnt we pay for the tourney and don't u get a cut of the hotel stay too) then add in Homer Refs in Toronto and no GST tax return on the way home? Team has decided no more trips to Toronto. Then kid gets hurt in game needs an X-ray - locals say "better off driving back to Buffalo". People in general are very cordial as you stated. Positive note -the Canadian women dress up to come to the games - kudos there -That is the Canada I have experienced over the last 4 -5 years. I Know that the US has more than its share of underachievers but beer is $20/case, no cover charge at tournaments, dont have to argue with a middle eastern guy about the exchange rate, have access to medical care, its likely that we have less trips to Canada in years ahead.
Given that we are likely to continue to devalue our currency, you should plan for a tough couple years. Eh ?
Aside from the tourism challenges in Canada, I think it is irresponsible to quote 2007 stats looking forward to 2009 business. The markets have changed drastically in just the past 6 months that any growth predictions from 2007 should be thrown out the window.
Well Canada is a well kept secret- having just spent a week in the Rockies (Jasper,Louise,Banff) as well as YVR, and YUL combining the outdoors and citylife- we loved it and you've got the product, the people so no worries just let people now what a fantastic place you have! I can't wait for some snow in the wintertime and will go there then!
We work and play in Phuket, Thailand!
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