For one reason or another Canada seems to be losing its appeal as a popular tourist destination in the eyes of our neighbours to the south. On the other hand, Canadian travel to the United States—especially to hot spots like Arizona and Florida—is on the increase, largely thanks to a strong loonie.
Visits to Canada overall are down by 30 percent, according to an August Statscan survey, while same-day car trips have dropped by almost a half in the last six years—the lowest it's been since record keeping started in 1972. With the $62.7 billion tourism industry employing over half a million people, it's little wonder that the dwindling numbers are generating some concern.
Experts conclude that there are many factors contributing to the drop-off in U.S. visitors to Canada, not the least of which is the appreciating Canadian dollar. Other deterrents include increased security sometimes causing long border line-ups, confusion around what kind of ID is necessary to cross the border and the high price of gas.
But Darrell Bryan says that while these are all factors, the real reason the industry has been feeling the pinch these past five or so years is because not enough is being done to market Canada as a desirable place to visit, with the result that it's dropped off the radar for many Americans.
Bryan, who manages the Victoria Clipper ferry service which runs between Seattle and Victoria, believes that better marketing by the Canadian Travel Commission (CTC), the crown corporation whose job it is to market the country, coupled with an increased effort from the private sector, would do a lot to bring more American tourists to Canada.
"We believe that the U.S. market has been taken for granted, that not a lot has been done to attract U.S. visitors to Canada," says Bryan. "You don't see a tremendous outpouring of advertising in the U.S. market."
While the Clipper has been able to offset low ridership somewhat by providing special offers and incentives, Bryan says some carriers have been hit hard. "We're not competing with other carriers to Victoria or Vancouver Island, we're competing with other destinations. Alaska Holidays recently advertised two nights in Reno, including air fares and taxi transport, for $149—that's pretty aggressive."
Randy Williams, President and CEO of the Tourism Industry Association of Canada (TIAC), says the CTC has had its budget slashed by $100 million over the last three years. At the same time, a United Nations study shows that most other countries have increased their tourism marketing budgets by 11 percent.
"The American tourism market is being wooed by other countries at a higher rate than ever before," says Williams. "We have the types of products the Americans are looking for, it's just that if you don't advertise there's not an awareness level, and obviously you're not going to make the sale."
On the bright side, domestic travel is expected to remain constant, thanks to a strong economy. Luba Plotnikoff, Travel Manager with Vancouver Island's Oceanside Tourism, says 2006 has been "an excellent year" in the Oceanside region. Plotnikoff says that while they continue to get lots of visitors from B.C., the brunt of this year's tourists came from Alberta and other prairie provinces.
Statscan also said that in recent years Canadians have been travelling in record numbers to overseas destinations, especially to Mexico, Cuba and the Dominican Republic. And although visitors to Canada spent $4 billion here between April and June, Canadians spent $5.9 billion elsewhere, creating a net outflow of about $1.9 billion—a travel deficit that was down only slightly in the second quarter.
Williams says that while requests for more tourism funding when the Liberals were in power fell on deaf ears, he hopes the Harper government "will see tourism in a better light."
Internationally, Canada slipped from seventh in the world four years ago to a distant 12th spot last year as a tourist destination. Thanks to tourism from Europe and Asia, the Canadian tourism industry is still expected to grow by about 3 percent this year, but the rate is still well below the anticipated global growth of the industry by 4.6 percent.
Where Have All the Americans Gone?
So, apart from the day-trippers, where are all those American tourists going who are not coming to Canada?
"They're going to Italy. Everyone's going to Italy. Everything's fabulous in Italy, and people go there multiple times," says Jennifer Halboth, Marketing Manager for Globus, a Colorado-based travel service.
Halboth says Italy surpassed Great Britain as the number one destination for America's international travellers a few years ago and has been on top ever since. She says that because of the allure of its fashion, food and romance, Italy has an advantage over other countries in that "the world markets Italy—Italy gets a constant stream of marketing to the American public, even if Italy is not behind it."
Halboth says generation X and the baby boomers, who travelled a lot throughout their lives and have already gone to their favourite places, are now starting to look for more exotic locales. She says that if Canada wants to attract this category of international traveller, it may be necessary to overcome certain stereotypes such as "the Mounties and hockey."
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