Why does Canada’s share of thriving tourist industry continue to shrink?
The world’s tourist industry is growing, causing some to wonder why numbers in Canada continue to shrink.
The UN’s World Tourist Organization called 2006 a record year for tourism. With 842 million arrivals and a growth rate of 4.5%, the industry continues a four-year streak of continued growth.
Africa’s rate of growth was nearly twice the world rate, at 8.1%. Asia and Europe also posted strong results. Despite a violent 2006, even the Middle East was on par with the world growth rate.
Tourism in Canada, on the other hand, was down more than 4%.
“Whether it’s same-day trips from the US, or travelers from overseas, there’s a problem in Canada’s multi-billion dollar tourist industry,” reported CBS News
Foreign visitors spend about $17 billion a year in Canada, most of that by Americans. Since 1999, the US has typically made up about 90% of all Canada’s inbound travelers.
A study done for the Canadian Tourism Commission in early 2006 estimates that the drop in US visitors has cost Canada $1.2 billion since 2002.
Statistics Canada has advanced several reasons to explain the growing absence of US travelers. They include:
ü The high Canadian dollar, which makes Canada far less a bargain than it was in 2002 when the loonie was worth only 62 cents to the dollar.
ü High gasoline prices that have soared in the past few years. In the spring of 1999, a US motorist was paying about 90 cents for each US gallon. By the spring of 2004, it was $2. By the summer of 2006, the gas bill had reached $3 per gallon.
ü 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 than flying to Europe. That boom lasted only until 2002, however.
ü Tougher border security measures put in place in recent years have led to often long lines at border crossings. And there is a perception of big delays and hassles to get into Canada from the US.
Report by David Wilkening
David
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