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Canada's tourism industry on verge of crisis: report
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CTV.ca News Staff
Date: Mon. Jun. 2 2008 10:45 PM ET
A report released Monday says the Canadian tourism industry is on the verge of a crisis.
It blames numerous factors for recent downturn of the industry including gas prices, the high Canadian dollar, the downturn in the U.S. economy, 9-11 and the SARS crisis.
But Randy Williams, the president of the Tourism Association of Canada, said the report -- which took a year and a half to create -- also blames internal factors within the $70 billion industry.
"We are suffering from a lot of structural problems within our own industry," he told CTV Newsnet on Monday. "We've been blaming all these external influences for the challenges of our tourism industry and we've got to put that behind us.
"Structurally, as an industry we are in trouble because we haven't been minding the shop."
He said the report has specified seven areas that the both private tourism operations and the public sector need to improve on.
One of the problems is access to Canada, Williams said. He pointed out that there is a lack of approved destination status with China, open-sky agreements with Europe Union and the Asian-Pacific countries, and logjams at the Canadian border.
He also said Canada is not doing a very good job of promoting itself in emerging markets such as India and Brazil.
"We are not even marketing in those countries and there is a lot of outbound growth there," he said.
"There is probably enough money in the system to better market Canada but we have to do a better job in both the public and private sector of collaborating and coordinating our efforts."
The U.S., which is experiencing a 16-year low in consumer confidence, is also sending fewer tourists to Canada. Same-day car trips to destinations north of the border have decreased by more than 40 per cent in two years.
Peter Julian, the NDP's tourism critic, said Canada could definitely do a better job marketing its unique features.
"We have unparalleled natural beauty in Canada," he said Monday. "We're not investing enough in trying to bring tourists to Canada."
The federal government already invests $400 million a year on tourism, funding events such as Quebec City's 400th birthday, trying to compensate for the decline in American tourists.
The report's suggested fixes include:
- reducing costs to the Canadian aviation sector;
- securing approved destination status from China; and,
- enhancing government-owned tourism properties like national parks and museums.
With a report by CTV's Rosemary Thompson
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I applaud the budget, even though Health Care and education may stay unscathed. Sadly this cannot last and I worry to later this year where cuts will become enviable. If anything, this provides the Wildrose Alliance plenty of ammo when an election is called.


Comments are now closed for this story
Mike UK
said
Tim
said
Hugh
said
Scott M
said
Like our economy, we are great at selling the base location but do little to jazz it up.
The strong dollar has taken away the competitive advantage and with very few unique attractions other than the ubiquitous Banff and Niagara Falls we are left with little to offer.
On top of this, we have a limited warm weather window.
Bill
said
Logan
said
People will spend money on what they want, so if Canada was more appealing, perhaps they would be more likely to come.
It is a bit odd that more Canadians don't think about visiting more parts of their own great country...I am always surpised at the number of people that have never been outside of their own province (and in some cases, city). Not every tourist dollar has to come from other countries.
bobby
said
You reap what you sow, America bashers!
Dave
said
A WEEKEND in Northern Ontario, Muskoka or Great Wolf Lodge is about the same as a WEEK in in an all-inclusive Caribbean.
Where would you go?
mike
said
Mark
said
I am a big time traveller. I'm very much involved in online travel forums, like Travellerspoint, and people around the rarely chat about Canada. Canada is hardly a destination of choice.
Our domestic travles are in my opinion, pretty sad. It seems that Canadians themselves would rather travel to places like FLA, Vegas, Mexico, Cuba, England, Autralia, Italy, Thailand, etc. than within their own country.....here's an exaple; how many people from out West (BC, AB) are planning to travel to the province of Quebec this summer.....I bet you that for many Western Canadians, Quebec City, which is celebrating it's 400th anniversary, isn't even on the radar.
I went to China last summer and I was amazed by all the domestic travelling that go on there. The Chinese make us look pathetic.
Wendy Merkley
said
The current government's non-acceptance of the Kyoto Accord along with poor standings with First Nations are only part of the illusion that is turning tourists off.
We used to be viewed as a healthy nation with universal healthcare, good social progams and peace keeping initiatives. That has all changed and so many outsiders are dissapointed with Canada.
We need to 'get with it'.
Captialism is killing us...
said
Hmm? Also, this is what you get from Captialism - all companies even Governments care about money. We need do something about it. Gas won't stop rising then world will be throw into crisis and we are letting these greedies get away.
Dumb eh?
Norm
said
rufuss
said
David
said
I don't think there are any Albertans left in Alberta come July!?!
Brett (Vancouver)
said
Much cheaper for us to stay in a hotel on Laguna Beach, California. If Canada wants our summer cash, how about setting prices that reflect Canadian wages. Summer inflation is absurd. You would think we are all European millionaires.
Phil
said
Bernard Romanycia
said
H.
said
M. Cameron
said
Den
said
Vanessa C
said
Dale
said
No Quebec is not on the radar for most western provinces and it is not because we wouldn't want to visit it, it's because of the people's attitudes towards English speaking people.
Adam
said
I've payed $200+ a night for a Comfort Inn in Calgary. Upcoming trip to Montreal is going to be $250 plus to stay in Laval.
While these rates are still much lower than most European destinations, our biggest competition comes from our neighbours in the south. Where I can almost always find a decent room for less than $150 a night.
Even in $500+ US a night Vail, CO I was able to find a $119 Holiday Inn Express 20 minutes down the road in Eagle, at the height of the ski season and on 48hrs notice.
As I use miles to fly for vacation, it is cheaper for me to go somewhere in the US as the points costs is the same but I can stay longer for a lot less.
We need reasonable hotel rates, hopefully brought on by competition. As a former Ottawa resident, our hotel selection is embarrassing.
GregNB
said
Denise
said
DW in TO
said
There's plenty to see in our fantastic country.
Tina
said
I agree Dave - when you can find a deal for two people to fly to Mexico, all-inclusive, for around $1,600, where would you go?
Rob from the Peg
said
As for me I find myself spending more time and money in the US simply because our dollar goes further down there than is us to. Too bad really, I'd like to spend more time visiting parts of Canada but whether you fly, drive along with hotel, food and shopping it's still just too damm expensive.
Only in Canada you say, pity.
JohnTraveler
said
Mind you - Europe is even higher - and I question EU value apart from historical sites - the rest is just marketing (like diamonds).
I too prefer to spend money in the US - still more bang for buck - but fundamentally, half the time I travel, I go places to see family and friends, not just sightseeing....
And too bad high taxes have moved 50% of my close friends/family to the USA..
Rob
said
Bored in Burlington
said
Even if I was given a free hotel room, free transportation and free parking in downtown __________ (fill in major Canadian city here), what am I going to do? Market yourselves cities!! If I was to take my family of four to Toronto, what would you have us do Mr. City? We would see a museum (not much fun for a 5 and 3 year old), theatre (no can do with the kids...), Shop (oh yeah right...!) eat at the same restaurants I get around my house? That is why we go away to places where there are lots of things that are marketed to kids. Close proximity to where we hotel, free parking,etc.
If people in tourism want to get people to do local stuff, you better start with better promotions and gear them to families or the young single. Those are the groups that always find a reason to travel.
We end up going to Europe because at least it is completely different from what we get here in boring white bread Canada. A U.S. trip for the weekend is always welcomed by the kids too. They like looking at the different types of currency!
We need to get energized about out country, and I dont see any group (government or private local) doing this for me and my gang.
King of Kensington
said
Lyn
said
King of Kensington
said
PolarBearFriendly
said
Canada is a northern country. People don't visit for the beaches. The country is still shaking off its Puritan values so you won't see many international tourists at the huge number of Canadian casinos.
Being a northern country Canada should be developing cost-efficient tourism programs for uniquely Canadian attractions--skiing, northern destinations to view polar bears, the midnight sun, the borialis and so on.
I suspect many southern people would love to experience the north in a controlled manner like northerners enjoy the south come winter.
Instead of promoting Toronto, which is much like most North American cities, promote things Canadian and unique to Canada.
ernest
said
The Conservatives simply favor guns and war to tourism.
Judy Normandeau
said
Socialism is killing us
said
Edb
said
Brian
said
.
Vacation in your own back yard and save the environment, or take a walking holiday supplemented with a little bus travel.
.
Its all about personal choices and if we want to save the planet we need to cut down on worthless traveling.
.
If its not to eat or work you should either stay home or travel pollution free only.
Grant
said
David
said
RM
said
As for overseas visitors, well if you aren't into the wilderness experience, what does Canada have to offer that you can't get elsewhere? London, Paris, New York, Rome, who'd visit Toronto when you could visit one of these world-class cities instead?
John
said
Greg
said
Chickens are coming home to roost. If you continue to pass moral judgement on your biggest trading partner...
Mayor Miller should be the poster child for the tourism colapse.
Doug
said
jill
said
JP
said
We cannot continue to use the SARS and 9/11 crutches and despite the economic downturns and stronger Canadian dollar, people will still come if they truly want to.
Thsi is so true- Do we need the Americans to visit use to say we have a good tourist season-
If the people who premote Canada woudl sell us in Europe, Asia and Australia we would be tter off - and these tourist spend money when ther are here and are my nicer and polite.
GregNB
said
Lunt
said
6-day hopper passes, transportation to and from LAX, couple of character dinners etc. and it would cost me the same to take the travel trailer from where I live in Northern AB to the Shuswap and back for a week. Needless to say, here we come Mickey.
pdm
said
Mike
said
Anyway, I'd sure like to find those super cheap U.S. hotels some of you have mentioned, because I never got much of a deal with rooms over there - and yes, I did look online. I will assume that said hotels are not infested with cockroaches, junkies and prostitutes?
Reece
said
Regarding open-sky's agreements...there's a very good reason why we don't permit many 3rd-world country nationals easy access specifically many of their citizens disapear into the population working illegally. The USA has the Mexican problem and we certainly don't need 1 billion Chinese easy access....our population would swell...our health care will fail and our middle class will be hit hard. So what if tourism is down since the alternative is worse. Find better medicine - one that isn't toxic.
Mladen
said
Denise
said
Judy Normandeau Re:My room rates start at $59 per night..Hot breakfast included. Judy at Lakeside Country Inn. FANTASTIC this is what I love to see - however Judy asfter reading your comments I went directly to Air Canada to check out flights - this tells you why people don't travel - for 2 adults cheapest Tango fare return from ottawa $2982.70 ARE YOU SERIOUS Air Canada? Half the trouble is hanging on to old icons like air canada - TIME for a change.
And Judy I would love to visit (when the air fares are more realistic).
peter
said
Make it cheaper for Canadians to enjoy the beauty of their own country and you will see alot more traveling take place.
Francine
said
I've gone on vacation to less-popular places in the US, and thought the experience was fantastic, they promoted the heck out of themselves. I see no shame in being proactive in the self promotion department. If we're not loud and proud about our attractions, why should our visitors be? Canada is more than mountains and Toronto. Though that's all I ever see being promoted.
Marc
said
Terry R
said
I traveled in Quebec and was treated with warmth, smiles, & genuine hospitality everywhere I went.
Don't confuse the attitudes of belligerent, OPPORTUNISTIC politicians with what you'll find from the WARM people!
... & here is a tip: If you try to speak even just a few words in French, it is easy to make someone's day while traveling in Quebec. I found that even though I speak French quite - uh - badly, the effort ALWAYS provoked a big smile and a desire from my hosts to communicate in English (rather than endure the pain of my struggles en francais!).
As for bad attitudes: Who are we kidding if we won't admit there are plenty of bad attitudes available in English in our home locales?! Fortunately, not everyone in the population has a bad attitude that is beyond their control. (Note: I'm BC-ian.)
I would advise anyone traveling to Quebec to visit the Gaspe region - a breathtakingly wonderful expanse of ocean-by-mountain that will inspire the soul of any explorer. (This note is not necessarily for the casino & high-fashion crowd - not all travelers have the same priorities, clearly.)
Roger T
said
Not only that the attractions are not attractive but talk about over prices merchandises even the citizens of GTA are buying anything from our own retailers. Over priced and greedy.
Saving comes before the economy!
Wenzel Hanik
said
Canadian abroad
Cliff
said
You think we're overtaxed? Have you been to England lately. Everything there is twice the price, plus gas is $10 gallon. On top of that the benevolent governments of both countries gouge us for another $338 in taxes (round trip) on top of the air fare.
Staying home or going across the border is a better choice.
Rosalyn
said
Tim K
said
Jess D
said
Doug BC
said
As for me, I took retirement last year,with the idea of seeing Canada coast to coast to coast. With gas at these prices,that is not going to happen. In fact,I now cross to the USA to buy all my gas for 50 per litre less. I may think about a camping trip to the USA this summer. Not my first choice,but much more affordable.
Get used to it. This is only the beginning of the effects of higher costs for energy. There will be huge numbers of people worldwide buying a lot less of everything. All businesses suffer when people don't have disposable incomes to spend. Just like all taxes impose poverty on someone,somewhere.
Nowonder
said
Our infrastructure sucks. In Toronto, for example, we have a sad water front, a few good restaurants and a couple of good shows. Like I said before, not even the CN Tower is an attraction any more!Toronto is way too expensive for what you get.
And for those who say we should travel within Canada, let me tell you I tried that and a week at Clevelands House in Ontario's cottage country or a week in Mont Tremblant, Quebec, cost me as much as a week in San Francisco or London, England!! You can't even compare the attractions, infrastructure and service of the US or Europe. Canadians need to leave their "Holier than thou" attitude behind if they want to attract tourism. First of al,l many people are starting to consider the environment and animal welfare when choosing a vacation destination. With the pathetic environmental record we have, the Tar sands, the seal hunt, bear baiting, polar bear hunts, etc. people are turned off by Canada and I don't blame them.
We are pathetic when it comes to the environment and tourism compared to the rest of the civilized world. We are always telling the world to butt out of our affairs and then we want them to come and visit??? That's very hypocritical.
Marilyn Taylor
said
Dan
said
GM
said
1) Canda's minimum wage is a least double most places in the US
2) The US has an endless supply of Mexican, Cuban, Haitian (and the list goes on) workers willing to work for minimum wage or less.
As long as the US keeps getting illegal immegrants flowing into their country, and keep their minimum wage well below Canda's, we will never be able to compete pricewise with them.
JJ
said
Tim K
said
John
said
Well done Oh Canada!!!
Oakville traveler
said
For Example I booked a flight from Buffalo to NY in August $ 358.00 return and the Hotel is $187.00 per night. New York sales tax @ 4% so where do you think I’ll spend the most money?
NicholasPaul
said
Let's face it, people only want to see Toronto and if you have seen it once there is really no reason to come back again because nothing changes."
What people? I lived in England and even there they have heard of the Calgary Stampede. THAT changes every year, unlike TO.
And compared to Europe, Canada is cheap, easy to get around and UNDERtaxed.
If you realised that you live in the best country in the world you'd realise that people would LOVE to be here.
I do.
Canada has TONS going for it, it's just too hard to see from the inside.
peter
said
Alice
said
JT
said
Many good comments thoughtfully augment the cited reasons. As first blush, I think the cited concern of effective marketing is accurate.
However, I certainly agree with the "American bashing" issue raised by Bobby. The former Liberal government started the ball rolling (bashing Americans in Parliament, of all places and on many occasions). Further, there's a very vocal group who demean Americans at any opportunity. Bobby put it well: we reap what we sow, and I think we need to be more prudent in what we say to our neighbours. Not everyone shares the same sentiments to the same degree.
Mario
said
I visited Toronto and they wanted $30 to go up the CN Tower. Another $20-$30 for parking.
I went to BMO field for the Under 19 World Cup and was charged $8.50 for a beer in the stands and they wanted $3.50 for a bottle of water.
I'll never visit Toronto again as I don't like getting ripped off.
stephen
said
An example I've seen very little regarding this years Quebec celebrations here in Alberta
Vern
said
Gerald Mee. Calgary Ab.
said
JUST MY HUMBLE OPINION
Calgarian
said
We rely too much on our natural beauty, but do not invest in entertainment and attractions, and when we try people scream not on my tax dollars. Realize MOST travelers are not hikers, mountain climbers or hunters. Most travelers need and want to be entertained, and we fail miserably in that regards. We need to invest in world class entertainment destinations that you can fly into be entertained stay a weekend or a week and then fly out again. Then we have to promote it the way other destinations promote, by making it attractive to the younger market and make it sexy to visit Canada…
Let's face it Canada the way we promote it is not SEXY.
Rod (Calgary)
said
Iqbal_Baksh
said
Trent
said
Andy
said
estaurent and see how they get treated when visiting)
Add to that high prices and you still wonder why we have a tourism industry in trouble? Canada used to be a friendly place, not anymore.
Wes
said
Robert
said
Jim
said
I can understand where you are coming from, but as a consumer I need to watch my dollars. When I can get a car rental in Honolulu for a fraction of the price to get one anywhere in Canada, something is wrong here. When domestic flights are as much or more than international,when I can get a condo for a week in Waikiki for less than a week at a circle 8 here, that feeling of something just grows. As a Candadian tourist the impression I get from our tourist industry is that they can care less about me as a domestic tourist.
Joe Schmo
said
Ben
said
MI
said
"Our domestic travles are in my opinion, pretty sad. It seems that Canadians themselves would rather travel to places like FLA, Vegas, Mexico, Cuba, England, Autralia, Italy, Thailand, etc. than within their own country.....here's an exaple; how many people from out West (BC, AB) are planning to travel to the province of Quebec this summer.....I bet you that for many Western Canadians, Quebec City, which is celebrating it's 400th anniversary, isn't even on the radar."
Well Mark I live in BC and go to school in Europe... ive looked into flights out east but its actually cheaper for me to fly to England than it is to Quebec... there are no options when it comes to domestic travel within Canada, there is no competition and the prices are ridiculously overpriced! we need to figure out a new system that allows Canadians to see this great country and give them the incentives to do it!
Canadian in Mexico
said
As for Canada's problems, it is not economical to holiday in Canada. Flights, hotels, restaurants, etc. are to expensive.
Advertising, compare Mexico's ads to Canada's. Where would you want to go?
Will this change in the near future - nope!
Travel Weary
said
Example...we are going to Edmonton for two weeks in July...three roundtrip plane tickets from Toronto to Edmonton is costing us over $2000.
We went to Orlando for a week last
August. Total price for hotel, airfare and rental car for one week for four of us was just under $2500.
Do you see a problem?
Trent
said
Lisa in Red Deer
said
Canada - you're great but I can't afford you.
DougB
said
Lart from Above
said
Many Canadian cities (not just Toronto, Montreal, and Vancouver, though those are the gems) really are wonderful places to live, work, and visit. We really do a bad job of sharing these with tourists, compared to cities in the US, Europe, and Asia. We seem to care about everyone except the tourists. Government (at different levels) has some of the blame, but the tourist industries themselves have a severe lack of leadership and vision compared to other places.
Dwayne
said
Imethisguy
said
I was planning a weeks worth of holiday- two choices:
1) a flying trip the Formula 1 race in Montreal. Prices for hotels all at least doubled, and in many cases _tripled_ for that weekend compared to the weekend before or after.
or
2) A motor trip through the north western US. Gasoline 30-40% cheaper, hotels half the cost, and friendly people glad to see you regardless of where you are from.
Where did I go?
Guess.
Linda in Vancouver
said
I read about a lot more things in this country that interest me than almost any of the popular destinations abroad.
I can afford Vegas,or Mexico,or many other US destinations. I cannot afford the trips to Canadian paces I would so much love to visit. Atlantic Canada and Quebec would be first on my list, The great north fascinates me.
What kind of a country is it that makes transportation so expensive that only the wealthy,and foreigners can afford to explore it? Maybe that's a good reason "national unity" is always out of reach.
Chris R
said
Les P
said
The allowed mileage just barely got us there and back so how are you supposed to enjoy yourselves and see the sights if you are constantly reaching into your pockets?
One would think the rental companies would offer discounts for longer trips and reasonable inclusive mileage.
The trip from Kitchener to Montreal put us back over 500 dollars. How many times can a family afford that?
My back yard is looking better as my next vacation sight everyday.
Canadian latitude
said
Vancouver has a reputation of being a no fun city and the RCMP murdering that Polish fellow at the Vancouver Airport did not help things either, not to mention it garnered world wide media attention. Maybe some of it is that we are viewed as a US puppet state by many now and that harper has hurt our international reputation, especially siding with Bush on almost everything, our lack of doing anything for the environment and the seal hunt. So when it all gets added up, it is not surprising tourism is down.
Plus with high fuel prices it is cheaper to stay closer to home and not much of a hassle as going international either.
Ernie
said
Howard Thomas
said
howard thomas
said
Erik
said
Don't forget that travel within our own country works both ways! Don't just blame the west buddy!
I'm from out west and I do plan to go to QC this summer BOOYEAH
david
said