Étiquette : Canada @en

Catégories
Geographic markets

Top 20 tourist destinations and source markets

pays emetteurs touristes

According to World Tourism Organization (WTO) estimates, the number of international tourist arrivals reached 1.2 billion in 2015, an increase of 25% over 2010.* Seen over the longer term, growth has been exponential.

Since the WTO compiles national statistics, methodologies may vary. For this reason, results must be interpreted with caution. In addition, results for the year 2015 were estimated based on partial data for some destinations. This article is an update of the 2011 analysis Global ranking of destinations and source markets.

Constantly shifting rankings

Not only has the ranking of destinations changed dramatically over the years, the sheer number of countries visited by tourists has increased tremendously. Here are some interesting observations about the number of international arrivals at the most popular destinations (Table 1):

  • The top 5 countries in the ranking accounted for 43% of all arrivals in 1970, and only 28% in 2015. Countries not included in the list of 15 top-ranked destinations for international tourist arrivals accounted for 3% of such arrivals in 1950, 34% in 1990 and 46% in 2015.
  • Canada’s ranking dropped from 2nd in 1970 to 14th in 2010 and to 18th in 2015.
  • China has become an extremely popular destination.
  • Malaysia, Turkey and Hong Kong have also made major inroads into the tourism market.
  • The top 5 destinations have remained more or less the same since the year 2000. France attracted more visitors than last year, but its rate of growth is slowing. China closely followed Spain in 2015, and both were right behind the United States.

Tab 1_top_15_tourist_destinations

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Tourism arrivals and tourism receipts: Two realities

Graphs 1 and 2 illustrate the top 20 destinations by international tourist arrivals and by international tourism receipts, respectively. The two rankings differ somewhat. Although France is the number 1 destination in terms of international tourist arrivals, it was ranked 4th in terms of tourism receipts. The United States holds the top position on the latter ranking, well ahead of Spain and China, the next two on the list. While several countries occupy similar rankings in both graphs, others appear in one and are completely absent from the other. Some countries have relatively high tourism receipts for the number of visitors: Australia (42nd in terms of international tourist arrivals), India (40th), Switzerland (36th) and Singapore (26th).

 

Graph1_top_20_Tourist_arrivals

Graph2_top_20_international_receipts

Although the overall increase in international tourist arrivals benefited all the countries in the top 20, Graph 3 illustrates significant differences among the various countries. Canada recorded growth of 13%, one of the lowest rates among all the destinations, which explains its drop in the rankings. Japan staged a comeback, increasing the number of international tourist arrivals from 8.6 to 29.5 million in 5 years. This increase is due to some external factors (depreciation of the yen and economic growth in China) as well as Japan’s decision to deregulate its aviation industry and facilitate visas for travellers from China, Malaysia and Thailand, making the country more accessible. Thailand, Saudi Arabia and Greece also saw significant increases in the number of tourists.

Graph.3_top_2_tourist_arrivals_change

Where do most travellers come from?

The data in Table 2 about tourist-generating countries is expressed in terms of international tourism expenditures as published by the WTO, not in terms of the number of trips. Total spending grew from US$495 billion in 2000 to US$986 billion in 2010, and then to US$1.26 trillion in 2015, for an overall increase of 154%. In 2015, 28 countries recorded international tourism expenditures of at least US$10 billion, while only 10 countries did so in 2000.

China has experienced explosive growth in international tourism expenditures, increasing 1240% in the past 10 years. Although a large part of this growth can be attributed to intraregional travel, China is still a huge outbound market. Chinese travellers spent an estimated US$292 billion outside the country in 2015. In comparison, travellers from the United States (the number two source market) spent US$113 billion and Canadians only US$29 billion. In Canada, the number of travellers from China in 2016 surpassed those from France, which was ranked 2nd. Other countries in the Asia and Pacific region also significantly increased their international tourism expenditures (Republic of Korea, Hong Kong and Singapore). It is crucial to continue efforts to develop direct flights with this region.

Germany, the United Kingdom and France occupy the next positions in the ranking. Japan moved from 5th in 2005 to 19th in 2015. Although several countries have seen a drop in their international tourism expenditures, the case of Japan is the most dramatic. Canadians spend a lot on international travel, ranking 7th.

Tab2_tourist_generating_expenditures

Focus on attractiveness and accessibility

International tourism continues its fantastic growth, attracting more and more travellers. Remaining competitive is a challenge for everyone. Although distances are less daunting than before, Quebec does not enjoy close proximity with major outbound Asian markets, nor does it benefit from the presence of low-cost flights linking it to a number of neighbouring countries as is the case in Europe, in particular. Efforts to increase destination attractiveness and accessibility are thus doubly important.

Source of image on page one: Pexels

Catégories
Geographic markets

Overview of Canadian Outbound Travel

Canadiens_voyages

Frequent travellers, Canadians spend a lot when they travel and are open to emerging destinations. However, they also enjoy long-standing favourites, with the United States accounting for nearly three-quarters of their international trips. At the same time, they are strongly attracted to the sun and beach. The Caribbean, notably Cuba and the Dominican Republic, and Mexico have been welcoming growing numbers of Canadians for the past several years. European countries, predominantly France and the United Kingdom, remain favourite destinations. The image below illustrates some key figures.

canadian_outbound_travel_overview

Significant spending

According to a study published by the European Travel Commission, Canadian outbound travel grew by nearly 6% annually between 2004 and 2013. The World Tourism Organization ranks Canadian travellers 7th, in terms of international tourism expenditure: they spent CN$37 billion in 2013 (excluding the cost of international travel), or more than double what they spent 10 years ago.

In 2015, travellers from Ontario recorded the greatest number of trips abroad by far, accounting for 15 million, followed by those from British Columbia and Quebec. Compared to 2014, the number of trips to countries other than the United States increased by over 10% in each of these three markets.

number_of_canadian_trips_abroads_in_2015_figure_1

Favourite destination: the United States

Canadian travel to the United States grew by an average 7% annually for at least a decade, up until 2013. Since then, the number of trips to the United States has dropped, in part because of the changing exchange rate.

As the following figure illustrates, travel to other destinations has grown almost every year. In the last 15 years, the number of leisure trips taken by Canadians outside the country has jumped 92%.

number_of_canadian_trips_abroads_200_2015_figure_2

Sun destinations and Asia on the rise

The Caribbean and Mexico are very appealing to Canadians, attracting nearly 5 million Canadian visitors in 2015. The 4.7% increase in travel from 2014 to 2015 is almost entirely due to the growth of arrivals to Cuba, Mexico and the Dominican Republic. Together, these three destinations account for over three-quarters of the Canadian trips to this region. Figure 3 illustrates this growth since 2012.

number_of_canadian_trips_in-mexico_cuba_republic_dominica_figure_3

Countries in the Asia/Pacific region have also seen an appreciable increase in the number of Canadian visitors, welcoming 2.4 million in 2015. As Figure 4 shows, China, Hong Kong, Japan and Thailand are the most popular destinations.

More European destinations

According to the Conference Board of Canada (based on estimates from 24 countries), Europe received more than 4.7 million Canadian arrivals in 2015. For many years, France, the United Kingdom, Italy, Germany and Spain have accounted for two-thirds of Canadien trips to Europe. However, less traditional European destinations like Greece, Finland and Croatia have been making significant inroads into the Canadian market. Primarily chosen as a summer vacation destination, Europe welcomed 6.2% more Canadian visitors in the winter of 2015-2016, compared to the previous winter.

canadian_arrivals_destinations_2014_2015_figure_4

Independent travellers

Canadians are primarily independent travellers (FIT), opting for personalized itineraries rather than organized programs. For Canadian travellers, the purpose of stay in Europe is not the same as that for other destinations. While 14% of trips to the United States are taken to visit friends and relatives, this proportion rises to 38% in the case of travel to Europe. In addition, the percentage of Canadians travelling for business is higher in Europe than elsewhere.

canadian_travel_purpose_stay_figure_5

Drivers of growth

Several elements will drive the growth of Canadian outbound travel in the coming years:

  • Although it is modest, Canada is in a period of economic growth.
  • Baby-boomers , which represent a significant portion of the population (29%), are gradually retiring. These individuals have a lot of discretionary income and want to travel.
  • The demand for travel to visit friends and relatives is high among Canadian residents from various ethnic communities who travel to their country of origin.
  • Canadians are familiar with digital marketing and are among the most active populations on social media. Destinations are using effective measures in the field of digital technology to increase their promotional efforts, which should stimulate Canadian outbound travel.

Image on first page: ©StockSnap

Catégories
Facts and figures Geographic markets

Global ranking of destinations and source markets

The flow of tourists to various destinations around the world has changed drastically in recent years and data compiled over the past decade corroborates certain trends. New outbound markets occupy the top spots and the ranking of destinations has been turned upside down. Emerging economies are profoundly altering the global tourism market, which is now shared amongst a much greater number of countries than before.

According to World Tourism Organization (WTO) estimates, the number of international tourist arrivals reached 940 million in 2010, or a 39% increase over 2000. Seen over the longer term, growth has been exponential; only 25 million tourists travelled in 1950.

Since the WTO compiles national statistics, methodologies may vary. For this reason, results must be interpreted with caution. In addition, results for the year 2010 were estimated based on partial data.

Top-ranked destinations

Not only has the ranking of destinations changed dramatically over the years, the sheer number of countries visited by tourists has increased tremendously. Here are some interesting observations about the number of international arrivals at the most popular destinations (Table 1):

  • The top 5 countries in the ranking accounted for 71% of all arrivals in 1950, and only 31% in 2010.
  • The “Other” category, which represents the next ten destinations in the ranking, accounted for only 3% of arrivals in 1950, but rose to 34% in 1990 and 44% in 2010!
  • Canada’s ranking dropped from 2nd in 1970 to 8th in 2000, and finally to 15th in 2010.
  • China is not only a very active outbound market; it has also become an extremely popular destination.
  • Malaysia, Turkey and Hong Kong have made major inroads into the tourism market.
  • The tourism sector has been demonstrating its resilience for over 60 years.

The top six destinations have remained been more or less the same since the year 2000. France enjoys a comfortable lead and China – which outranked Spain in 2010 – is now closing in on the United States. Canada has not been one of the top ten destinations since 2004.

Graphs 1 and 2 illustrate, respectively, the top 20 destinations by international tourist arrivals and by international tourism receipts. The two rankings differ somewhat. In terms of tourism receipts, the United States is in the top position, well ahead of second-ranked Spain, which also outranks France. While some countries occupy similar rankings in both graphs, others appear in one and are completely absent from the other. Countries that rank in the top 20 of arrivals but not in receipts are the Russian Federation (27th), Poland (30th), Ukraine (50th), Greece (21st) and Egypt (22nd). Conversely, some countries have high tourism receipts for a relatively lower number of visitors: the Netherlands (21st), Switzerland (28th), Japan (29th), Australia (41st) and India (42nd).

In fact, not all countries have benefitted from the overall growth in international tourist arrivals. Graph 3 illustratesthe change in arrivals for various countries. While some have more than doubled the number of arrivals, others, like Canada (-18%) and Poland (-28%), have recorded major decreases.

Where do most travellers come from?

Europe is currently the top source market for tourists, generating 55% of all international tourists, followed by Asia and the Pacific (20%) and the Americas (16%) (Table 2). Asia and the Pacific, the Middle East and Africa recorded the strongest average annual growth rate for the period covered. The majority of international visitors, approximately four out of five, travel within their own region. However, it would appear that the number of trips from one region to another has increasedat a faster rate than the number of intraregional trips. Industrialized countries remain the primary source markets of international tourists. However, with the increase in disposable income, many emerging economies have experienced higher growth rates in the past few years.

The data in Table 3about tourist-generating countries is expressed in terms of international tourism expenditures, as published by the WTO, not in terms of number of trips. Total spending grew from US$478 billion in 2000 toUS$678 billion in 2005and to US$850 billion in 2009, for an overall increase of 78%. In 2009, source markets saw their international tourism expenditures fall 10% compared to 2008, due to the economic crisis and the H1N1 flu. In 2000, only 10 countries recorded international tourism expenditures of at least US$10 billion, while 23 countries did so in 2009.

The top three spots have been occupied by Germany, the United States and the United Kingdom since 2000, with France, Italy and Japan following close behind.The explosive growth of the Chinese travel industryhas pushed it into the top five even though its population has only just begun to travel. Chinabegan signing agreements in 1999 to permit leisure travel to various countries, but Canada has only very recently obtained the status of an authorized destination (June 2010). The Chinese still travel a lot within their own country, but the proportion of domestic trips to those outside the country has risen from 71 to 1 in 2000 to 38 to 1 in 2009.

Japan is the only country in the ranking below to have reduced its international tourism expenditures. Hard-hit by economic woes and fuel prices, the population has lost some confidence and travels less than before.

The Russian Federation, Saudi Arabia, Belgium, Australia, Singapore, Norway and Brazil more than doubled their spending during this period.

In short, the tourism market is constantly changing and welcoming more participants so it is easy to get lost in the crowd. The good news? The number of tourists from various regions around the world is growing constantly. We live in an age where physical distances are less intimidating than before and where tourists are choosing to travel just about everywhere. We must design our tourismstrategies to reflect a broader geographic perspective and not be afraid to compete with top-ranked destinations.

 

Sources:

– World Tourism Organization. “World Tourism Barometer, Interim Update April 2011.”

– World Tourism Organization. “Tourism Highlights, 2009 Edition.”

 

Catégories
Sustainable tourism

“Green” practices in British Columbia’s B&B industry

Numerous studies have examined environmental practices in hotels (Winter & Azimi, 2006; Johnson, 2008; Hanna, 2008; Gunter, 2008; Bohdanowicz, 2005), but very few have focussed specifically on the environmental practices of the B&B industry.  Bed and breakfasts (B&B) are defined as lodging establishments set in a residence that offer overnight accommodations and breakfast (Rushmore & Baum, 2001). B&Bs are, by definition, much smaller than typical lodging operations, which are usually full-service hotels; however, the B.C. Ministry of the Environment in 2007 found that residential and commercial buildings in B.C., which include B&Bs, produced 12% of total greenhouse gas emissions.  With the recent Olympics held in British Columbia, the focus had to be on environmental initiatives for all players and actions taken to further this environmental agenda. A study was done to assess the current “green” practices in British Columbia’s B&Bs as well as to determine the awareness of owner/operators about such practices and their level of participation.  The study also identified and measured what owner/operators felt were the barriers and incentives to implementing “green” practices.

The primary data used for this study was based on 146 valid responses from B&Bs in British Columbia (13% of an 1100 sample size), which were completed using an online survey tool in October 2008.  Research found that a significant number of B&B owner/operators indicated they have implemented “green” practices in their operations. The most common “green” practice was recycling; an average 73% of owner/operators “always” recycle. Owner/operators also exhibited environmental awareness by “usually” or “always” purchasing organic (40%), locally grown (66%) and low-toxic items (62%). The tendency to purchase organic and local items depended on availability and the B&B’s location, with remote locations finding this difficult. Additionally, 80% of participants indicated that they take the initiative to learn about environmental management. This shows that the trend of becoming more sustainable is apparent within B&Bs in B.C.

Barriers that hindered B&B operators from implementing “green” practices included financial restrictions, lack of resources and location. The financial restrictions cited as a barrier were also consistent with the response that a monetary incentive would be effective. The majority of respondents were not part of a “green” association that recognizes environmental initiatives through certification. In fact, no standard certification process exists for B&Bs in B.C.

Recommendations from this report outline how stakeholders could help B&Bs develop more “green” practices. First, government and associations could improve communications and increase the availability of feasible “green” practices that B&Bs could implement. The creation, implementation, communication and monitoring of government incentive programs in the field of sustainability would also improve B&Bs “green” practices. Second, an association could be created at the provincial or local level to recognize “green” initiatives through certification. Third, B&Bs could also become more aware of the current provincial and federal incentives offered to establishments for retrofitting.

Overall recommendations for government, associations and industry include the creation of a co-operative marketing initiative involving all three stakeholders.  This initiative could help increase awareness of “green” practices and specifically target the “green” niche market. The study notes that B&Bs are often not considered when discussing the impact of tourism and its contributions to mitigating climate change or moving towards more sustainable tourism. If Canada is to be seen as an eco-conscious destination, the B&B industry must not be forgotten. – new-

Bibliography
– Bohdanowicz, P., «European Hoteliers’ Environmental Attitudes: Greening the Business», Cornell Hotel and Restaurant Administration Quarterly, vol. 46 no 2, 2005, p.188-204.
– Gunter, H., «State programs help define green hotels», Hotel & Motel Management, vol. 223 no 10, 2008, p. 4.
– Hanna, E., «Setting the guestroom for the guest», Hotel & Motel Management, vol. 223 no 10, 2008, p. 48.
– Johnson, A., «Savings by the load», Hotel & Motel Management, vol. 223 no 11, 2008, p. 34.
– Rushmore, S. & Baum, E., «Hotel and Motels: Valuations and Market Studies», USA: The Appraisal Institute, 2001.
– Winter, J. P. & Azimi, S. L., «Less Garbage Overnight: A Waste Prevention Guide for the Lodging Industry», New York: INFORM, 1996.

Catégories
Products and activities

A look at the cruise destinations competing with the St. Lawrence

The St. Lawrence River is still a relatively new destination on the North American cruise market. Recent federal and provincial spending on ports of call has helped upgrade reception facilities and improve the quality of the visitor experience. In this highly competitive industry, where a single cruise ship call can generate thousands of dollars as well as significantly increase a destination’s visibility, do we measure up to our competitors? Firstly, who are they? Secondly, how do they market themselves and what is their market share of this sector?

Some basic observations about Canada and Québec

In 2007, Business Research and Economic Advisors (BREA) calculated that 2 million cruise passengers visited Canada during nearly 1,000 calls. In total, the industry generated some $2.3 billion and created 16,600 jobs. BREA estimates that 6% of this money was spent in Québec while 21% was spent in the Maritimes. In 2009, Québec welcomed some 166,000 passengers and 63,000 crew members. According to estimates from the Québec Ministère du Tourisme, cruise passenger spending will rise from $73 million to $275 million by 2014, an annual growth rate of 17%.

Table 1: St. Lawrence River ports in 2009:
Number of calls and number of passengers


Source: Visitor statistics from 2006 to 2010, compiled by the Québec Ministère du Tourisme

The Maritimes

A well-established cruise destination, the Maritimes have engaged in promotional and representational efforts for many years. They can be considered both competitors and business partners, because Maritime calls can enhance the itineraries of cruises headed to Québec.

The primary ports of call are Charlottetown, Gros-Morne, Halifax, Saint John and Sydney. Though history is the main attraction (museums, heritage sites, historic villages), outdoor recreational activities are also a big draw (hiking, beaches, kayaking, golf, whale-watching and other excursions). Table 2 illustrates the cruise visitor numbers recorded for the year 2009 in the major Maritime ports of call; Québec City was added by way of comparison.

Table 2: Cruise statistics for the Maritimes – 2009

* 2008 data

According to a 2008 study by the PEI Tourism Research Centre, 80% of the cruise passengers visiting Charlottetown came from the United States, 69% were 55 years or older and 85% were on their first visit to the Maritimes.

Source: Vacationstogo.com

New England

Let us take a closer look at our neighbours to the south. New England benefits enormously from its proximity to the major client bases of New York and Boston, which are the departure points for numerous cruises heading to Canada, as well as those for Bermuda and the Caribbean. The table below provides a brief overview of the cruise industry spin-offs generated in New England.

Table 3: Overview of the cruise statistics for New England – 2008

Source: CLIA, 2008 State Economic Fact Sheets

According to these findings, the state of New Jersey attracts fewer passengers than the province of Québec. However, according to figures from BREA, Québec attracted far fewer cruise-related spin-offs, generating only $138 million in 2007, compared to $387 million for New Jersey in 2008. In terms of employment, all of Eastern Canada (including the Maritimes) generated only 2,000 cruise-related jobs, compared to the 6,814 for New Jersey recorded by the CLIA.

Cruise Maine presents the change over time in the number of cruise ship calls since 2003.

Table 4: Number of stopovers in Maine ports, 2003 to 2009

*Projected figures
Source: Cruise Maine

According to a 2008 study by Todd Gabe and Jim McConnon, two economists from the University of Maine, cruise passenger spending injects approximately $5.8 million to $8 million into the Portland regional economy each year. On average, a single passenger spends about $81 per day, the major part of it spent as follows:

  • food – $28
  • clothing – $21
  • arts and jewellery – $6
  • household items – $5
  • transportation – $5

In 2008, Portland welcomed a total of 48,000 passengers, during 35 calls. In 2009, the numbers rose to 69,852 passengers during 45 calls. Reservations for 2010 are predicting 76,867 passengers during 70 calls.

The Baltic Sea

The Baltic Sea region is booming. Europeans are increasingly attracted to the area and North Americans are also showing greater interest in these destinations. The biggest consumers of cruises, North Americans are already well-acquainted with destinations like the Caribbean, the American West Coast and Alaska. The search for new destinations has led them to look at Mediterranean and Northern European cruises. The Baltic Region’s position on the cruise market is, in many ways, similar to that of the St. Lawrence: a destination offering culture, history, Northern landscapes, outdoor activities, coastal villages, etc.


Source: Vacationtogo.com

Baltic Sea destinations vary widely in terms of economic spin-offs and port facilities.

Table 5: Most popular Baltic Sea ports: wharf length and cruise statistics – 2008-2009

Source: Cruise Europe.com

Port facilities in the Baltic Region are undergoing numerous improvements. The city of St. Petersburg has built a new terminal for cruise passengers that should be completed sometime in 2010. Hamburg inaugurated its new cruise terminal in August 2009. The CLIA also reports that Stockholm, which has been operating one new terminal since 2008, will be opening another in 2010. It will house a museum of photography, among other things.

The Baltic Region has also decided to take steps to reduce the environmental impact of cruises by pushing the Clean Baltic Shipping Program. This plan has five main objectives:

  • encourage ships with low sulphur and nitrogen emissions
  • reward the initiatives that best reduce the environmental impact
  • introduce a certification process
  • equip all boats with wastewater treatment systems
  • install a wharf-based power supply system for every port in the region by 2015

All signs indicate that St. Lawrence ports are competing in an increasingly well-organized and diverse market. This means it is vital to continue developing port facilities and, more importantly, work to create a high-quality product that stands out from the competition.

 

Article written for the Ministère du Tourisme intelligence gathering project

 

Sources:
– Business Research & Economic Advisors (BREA). “The Economic Contribution of the International Cruise Industry in Canada 2007,” NorthWest CruiseShip Association, Cruise Newfoundland and Labrador, Cruise the Saint Lawrence, Atlantic Canada Cruise Association, Cruise BC, p. 4.
– Cruise Europe, Cruiseeurope.com.
– Cruise Line International Association (CLIA). “2008 State Economic Fact Sheets”, Cruiseindustryfacts.com, consulted January 2010.
– Cruise Line International Association. “Fantastic Cruise Record for Stockholm, Fast Facts”, November 2009, p. 3.
– Cruise Maine, Cruisemaineusa.com.
– “Cruise ships brought $3M to P.E.I. in 2008”, Telegraph Journal, May 2nd, 2009.
– Department of Tourism, Culture and Recreation. Backgrounder Year-End: “Provincial Tourism Performance 2009 and Early Tourism Outlook 2010”, New Foundland and Labrador, Tcr.gov.nl.ca, consulted June 23, 2010.
– Malhère, Manon. “Baltic Region: OPS for Sustainable Port Development”, Europolitics Regional, Europolitics.info October 12, 2009.
– Ministère du Tourisme.  “Les statistiques d’achalandage de 2006 à 2010”, 2010, special compilation.
– Peter, Tom. “Cruising right along; Ports officials pleased with tourist season”, The Chronicles Herald, Halifaxemployers.com, January 4, 2010.
– UK and EIRE, “Seatrade Cruise Review”, Seatrade Communications, September 2008, p. 45.
– Sondage effectué auprès des passagers et membres d’équipage au cours de la saison 2009, ministère du Tourisme, 2009.

Catégories
Accommodation Sustainable tourism

Tendency of adherence to green labels in hotels across Canada

Improvements of environmental performance by the accommodation sector are not measured systematically and this makes it hard to estimate the extent of real change. In Canada it is certainly not uniform according to adherence to the programs detailed in Table 1. Although some hotels continue greening their performance, the sector is only at the beginning of reducing its ecological footprint. For example, if we compare the results of Table 1 to the number officially registered accommodation establishments in Quebec by the Corporation de l’industrie touristique du Québec, less than 2 % of the sector participates in any of these programs.

analyse_green_certification_JP

Green-Keys Eco-Rating Program

analyse_green_certification1_JPThe Green Key Eco-Rating Program was launched in 1997 and it is administered by the Hotel Association of Canada (HAC). The number of green keys recognizes participating establishments and more keys mean more « green » measures implemented. Although any establishment can apply for the label, the program is still designed for large hotels. Participation is comprised of a self-administered on-line audit that consists of 140 questions across 5 categories of operation. Since 2007 the HAC performs random on-site audits.

At present about 600 properties are registered with the program across Canada (Table 1). The aim is to reach 1000 by the end of 2008, which would represent 30 to 40 % of all hotels in Canada with 50 rooms or more. In March 2008 Ontario and British Columbia had the most hotels participating in the program (Table 1) and most were part of a chain and had a 3 key rating . Hotels with a five key rating are considered to have the highest standards in environmental management and social responsibility throughout all areas of operations set at an international standard for sustainable hotel operations (refer to list at the end for examples).

In Quebec labeled establishments are unevenly distributed on the basis of official tourist regions. Montreal has the highest number of establishments followed by Quebec and Montéregie, but some regions have no participants at all. 

Eco-rating programacross different tourism regions of Quebec.

Greenleaf Audubon

analyse_green_certification2_JPAudubon International’s eco-rating program is offered jointly with TerraChoice Environmental Marketing, Inc. and exists since 2000. Participating establishments are recognized by the number of green leaves (1 to 5) and more leaves imply more environmental measures implemented. Participants conduct a self-evaluation covering six key areas of operation that are analyzed by TerraChoice Environmental Services, who also direct the independent verification process and conduct random on-site spot checks of establishments.

Although any type of accommodation facility can join the program, in March 2008 only 44 were members in Canada and mainly in Manitoba, Nova Scotia and Ontario (Table 1). Most Canadian participating establishments had 3 leaves. The only two establishments in Quebec were in Montreal and each had two leaves. The low number of participants in a Canadian context is due to the popularity of the HAC’s green-key program although some hotels participate in both.

Réser-vert

analyse_green_certification3_JPIn November 2007, l’Association des hôteliers du Québec with its private and public sector partners announced its own program to recognize establishments who have implemented sustainable development principles. Participating establishments receive the logo of Thuya occidentalis, whose different colors represent the 3 pillars of sustainable development. Similar to the other programs, this one also involves an initial self-assessment of 140 specific operations in 10 categories. Any, accommodation establishment is eligible to apply. Given the program’s recent creation, statistics are not yet available to show participation rate.

 

 

LEED

analyse_green_certification4_JPThe most rigorous program for the built environment is LEED, administered by the Canadian Green Building Council. It is applicable to newly constructed and establishments in renovation and participants conduct an assessment of performance measures. Once registered, participants conduct an evaluation across various operational categories to obtain silver, gold and platinum certificates. In March 2008 there were six hotels registered in Canada, half of which were in Ontario (Table 1) and the highest-level of certification was gold.

Does the market care?

There is proof (at least suggested by large hotel chains) that being green means a good image, savings and net improvements of economic performance. As the market is starting to adjust to the « green revolution », being green will continue being important. Most studies also suggest a rising demand for green accommodation although how this translates in real figures in different destinations is not yet ascertained. However, it appears that the eco-coconscious traveler is no longer satisfied by symbolic environmental efforts such as opting to reuse towels.

European reports indicate that corporate social responsibility will become an even more important factor for the meetings and events sector over the next years and this trend appears to be the same in North America. Based on the 2008 Hotel Association of Canada / Fleishman Hillard Travel International Travel Intention Survey, greenlodgingnews.com reported that 29 % of business travelers compared to 21% of leisure travelers were prepared to pay 5 % more for a more eco-friendly stay. The same study also showed that 52 % of all travelers surveyed sought hotels with strong green practices « occasionally » or « as much as possible » compared to 46 % who said « rarely or never ». Interestingly 91 % of all respondents were not familiar with Canada’s Green Key Eco-Rating program. When asked if their organization had a green travel policy 60 % said no, 8 % said yes and 32 % did not know.

In the meantime the hotel industry needs to do what makes business sense. An establishment that is weak on both values and commercial competence will mean bad business in the future. The snapshot of adherence to green certification programs suggests that small hotels are laggards in environmental responsibility given that most of the hotels labeled today belong to chains, even if in reality many small establishments are actually improving their sustainability performance. The challenge to translate environmentalism into profits may be much higher for them. Given that tourists are not yet green enough means time is in their favor. There might be other forces at play that will push them in the « green » direction such as the prediction that energy prices could be 70 % higher in some Canadian provinces and landfills fees over the next five years.

All hotels must change their practices to move towards sustainable operations and there are literally hundreds of resources to help with the process today, including many examples of good practice.

Best practice hotels according to labels mentioned in this analysis:

Siwash Lake Ranch

The Fairmont Chateau Lake Louise

Hospitality Inns & Suites, Lloydminster

Monterey Inn Resort & Conference Centre

Trout Point Lodge

Aurum Lodge

E’Terra Inn

Endnotes:

Participation costs in programs is variable. For members to an organization, the costs are as follows to the aforementioned programs:

Green Keys of Hotel Association of Canada: CAD 350 (+ GST) annually per property.

Audobon’s Green Leaf: CAD 500 (+ GST) plus $ 1/room, for establishments with less than 50 rooms and CAD 800 (+ GST) plus $ 1/room for establishments for those with more than 50 rooms.

Reser-vert: Hotel Association of Quebec: For members it CAD 150 to enter the program and subsequently the program costs CAD 350 (+GST) annually.

Leedership in Energy and Environmental Design: The cost of participation is dependent on the size of establishment. For a hotel with less than 500 m2 surface area in Quebec certification would be around CAD 4200 (+ tax) plus registration cost CAD 1000 + GST). For establishments that are in renovation the fee is about 50 % less, including registration fee.

Sources:

– Audubon Green Leaf Eco-rating Program: [http://www.terrachoice.ca/hotelwebsite/indexcanada.htm], last accessed March 30 2008.

– Buckley, R. (2002) Tourism Ecolabels. Annals of Tourism Research, 29(1) p.183-208.

– Canadian Green Building Council: [http://www.cagbc.org], last accessed March 30 2008.

– Corporation de l’industrie touristique du Québec (CITQ) (2008): [http://www.citq.info/nouvelles/statistiques.asp] last accessed March 30 2008.

– Font, X. and Harris, C. (2004) Rethinking Standards from Green to Sustainable. Annals of Tourism Research, 31(4) p.986-1007.

– Hasek, G. (2008 a) Leed Gold-Certified E’Terra Inn is Natural Fit for Niagara Reserve. Green Lodging News, 02-06-2008. [www.traveldailynews.com], last accessed March 30 2008.

– Hasek, G. (2008 b) Canada’s Hoteliers Gather to Explore Green Trends, Best Practices. Green Lodging News, 02-26-2008. [www.traveldailynews.com], last accessed March 30 2008.

– Hospitality and Sales Association International Summer 2007 edition. Resources for Resourceful Hospitality Firms. p. 28-30.

– Hotel Association of Canada: [http://www.hacgreenhotels.com/index.htm], last accessed March 30 2008.

– Hotel Association of Quebec: [http://www.hoteliers-quebec.org/fr/accueil.php], last accessed March 30 2008.

– McDonald-Gibson, C. (2008) Des hotels écolos tendent la main aux voyageurs. Agence France-Presse, le jeudi 3 avril 2008.

– Reiser, A. and Simmons, D. G. (2005) A Quasi-experimental Method for Testing the Effectiveness of Ecolabel Promotion. Journal of Sustainable Tourism, 13(6) p.590-616.

– Terra Choice Environmental Marketing (2008): [http://www.terrachoice.com], last accessed March 30 2008.

– Verikios, M. (2007) CSR Higher on the business agenda. Travel Daily News, 19-10-2007. [www.traveldailynews.com], last accessed 19 October, 2007.

– Verikios, M. (2008) Focus on environmental responsibility within meetings industry. Travel Daily News, 09-04-2008. [www.traveldailynews.com], last accessed April 10, 2008.

Catégories
Facts and figures Geographic markets Issues

Dollar (dis)parity is only part of the problem

Now the Canadian dollar has reached parity with its US counterpart, many questions are being raised. Without doubt, Canada’s performance in the American tourist market has been disappointing in recent years and the inexorable rise of the Canadian dollar in 2007 has only increased the level of anxiety in our industry. However, is our tourism deficit closely tied to the vagaries of the exchange rate? Is it a given that the flying loonie will aggravate our poor performance? By examining the issue from a broader perspective, we find that the reality is much more complex. We shouldn’t be too quick to blame all our tourism woes on the dollar exchange rate.

Concerns for the US market

The rise of the Canadian dollar in relation to that of Uncle Sam has been truly spectacular over the past five years. In 2002, the exchange rate for US$1.00 was CN$1.57 (average annual rate). For many years, the exchange rate was one of the incentives used to attract our neighbours from the south with slogans like “Stretch your dollar!” Clearly, the dollar’s sudden parity is of great concern, given that stakeholders across the board are looking for ways to stimulate this declining market, so key to the health of our tourism industry.

Since 2002, a record year for the number of American tourists in Canada, the numbers have been falling steadily, apart from a brief respite in 2004. And yet, is the exchange rate truly the prime culprit? Have we overestimated its influence on the travel behaviour of Americans?

The situation elsewhere

To better understand and put into perspective how the exchange rate truly affects the travel decisions of Americans, we have compared changes in the value of the loonie with those of other currencies (see Figure 1). We have examined fluctuations in the US dollar since 1995 in relation to the Canadian dollar, the euro, the Mexican peso and the Japanese yen. At the same time, we have charted the annual number of US citizen international departures to Canada, Mexico and overseas. To make the data comparable, we have established 1995 as the reference year, with an index of 100. The lines in the graph below illustrate the increases and decreases noted in relation to the reference year.

CP_2007-09_taux_change_grphq1

This graph shows the decline of the US dollar in relation to the Canadian dollar (red line) is much more dramatic than the drop in the number of American tourists to Canada (broken red line). The departures in question refer to stays of one night or more, as day trips have, in fact. recently dropped more precipitously.

Venturing further afield

It is a mistake to believe Americans no longer travel due to a combination of factors like a weak currency, security concerns, a turning inward, etc. The line tracking the number of Americans travelling overseas (broken blue line) eloquently shows that Americans are more interested than ever in discovering new destinations. For example, according to a survey of AAA travel agencies, reservations for US travellers to Eastern Europe jumped 55% in the summer of 2007.

Though there was certainly a temporary drop in the period immediately following 9/11, interest in far-flung destinations rebounded as of 2003. In fact, the euro is the most relevant currency in the analysis of how exchange rates influence US travel abroad (though we have included the yen for information purposes). Like that of the Canadian dollar, the euro’s value has appreciated significantly (dark blue line) vis-à-vis the US dollar since 2001. And yet, during the same period, the number of international departures from the US increased dramatically.

The example of Mexico

Mexico is a very interesting case because its geographic proximity to the US is similar to that of Canada. Unlike the Canadian dollar, the Mexican peso has been falling steadily in value against the US dollar since 1995 (green line). However, this growing purchasing power has not affected the decision to travel to Mexico, with the number of US tourists to the country remaining relatively flat (broken green line).

A closer look at two other indicators

A basic notion in economics is the idea of “All other things being equal.” This is often used as a premise when analyzing economic phenomena. However, in real life, all other things are never equal, a caveat that must be kept in mind when referring to the analytical model presented in Figure 1.

CP_2007-09_taux_change_grphq2

The travel intentions of citizens are often tied to their country’s economic performance. For this reason, we felt it was interesting to compare the change in the number of American tourists travelling to Canada and overseas with two other economic vectors: the level of personal consumer spending (purple line) and the price of gas (yellow line).

Without doubt, skyrocketing gas prices do nothing to encourage proximity tourism among Americans who usually travel to Canada by car. Over the past few years, the drop in the number of these travellers has been much more pronounced than the decrease in air travellers.

The change in US personal consumer spending is another interesting indicator of Americans’ ability and desire to spend. In fact, the graph shows that the significant increase in international departures is more or less in step with the spending indicator. Though our analysis may not be truly scientific, it does illustrate that Americans’ travel interests are evolving to the detriment of Canada.

Better understand the impact

Surveys show that the exchange rate can influence travel intentions, particularly among certain customer segments. When it comes to international travel, Americans demonstrate a lower sensitivity to currency fluctuations than Canadians.

Certain outside factors can enhance the potential impact of currency fluctuations. One such factor in particular is the media coverage lavished on the phenomenon; it would seem the Canadian media is more interested than the American media in the rise of our dollar.

It is also true that although Americans may not be very aware or influenced by the loss of their purchasing power, they definitely feel it once they reach their destination. The firm Moneris Solutions has studied US credit and bank card transactions at Canadian merchants. Total transactions in US dollars dropped in July and August 2007 compared to the same period in 2006.

This study did not take into account the number of visitors involved. Nonetheless, the numbers do indicate that spending budgets have dropped in a greater proportion than the number of American tourists. Other factors like falling room prices in 2007 also had an affect on the expenditure base. The study reveals the sectors most severely affected: specialized retailers (-35%), campgrounds and trailer parks (-22%), public golf courses (-14%), hotel reservations (-13%), bus travel (-13%) and restaurants (-8%)

A major challenge

Canada’s current difficulty recovering its share of the American market is deep-rooted and not due solely to economic factors. Other studies have reached the same conclusion: Americans no longer find Canada as attractive as they once did and would prefer to set their sights on new destinations. An unfavourable exchange rate and high gas prices are merely additions to the list of deterrents, particularly when it comes to proximity tourism. Now that our currency has reached parity, we must use innovation and an enriched tourism supply to change their minds!

Sources:
– Montet, Virginie. “Les touristes américains découvrent l’Europe de l’Est,” La Presse, September 26, 2007.
– Office of Travel & Tourism Industries.
– Turner, Riva. “US Spending in Canada Sees Significant Decline,” Moneris Solutions [www.moneris.com], September 24, 2007.
– US Census Bureau.

Catégories
Accommodation Issues

Restaurant industry in change: be proactive!

New regulations are being introduced in the restaurant industry. Now that consumers want to eat better and know more about the origins and composition of their food, some lawmakers are taking action. Not to be outdone, Canada will likely follow suit and pass its own new regulations in the near future. The hotel and food service industries can wait and then react to such legislation, or businesses can, as some chains have done, be proactive and take advantage of this trend to distinguish themselves from the competition.

New York City gets things started

The New York City Department of Health and Mental Hygiene has unanimously voted to phase out the use of artificial trans fats* in the city’s 24,000 restaurants by July 2008. In another first, the same department has also adopted a measure requiring restaurants with standardized menus (in other words, approximately 10% of all restaurants) to post calorie information on menus or menu boards. Although New York is the first city to adopt such regulations, if the large number of states and municipalities currently considering such measures is any indication, this is indeed a growing restaurant industry trend.

Reactions to these measures have been varied, but the NYC health department maintains that 95% of the comments received during the public consultation process supported the proposal. Complying with these new regulations may be onerous and costly for many establishments. For major restaurant chains, changing a recipe is a major logistic challenge. In addition, posting the number of calories on menus not only involves research and printing costs, it can create a crowded display.

Three days after NYC’s announcement, the Loews hotel chain was the very first such chain to announce its intention to eliminate artificial trans fats from all restaurants, shops and mini-bars in its 18 US and Canadian properties by June 2007. Restaurant chains like Taco Bell and KFC are preparing similar strategies, while Wendy’s International has already phased out trans fats from its 6,300 restaurants. Marriott International will be the second hotel chain to follow suit by eliminating all trans fats from its 2,300 establishments in the US and Canada.

The sale and production of foie gras

In addition to trans fat bans and calorie labelling, there are other regulatory measures affecting food. For example, the production of foie gras is now prohibited in many countries (e.g., Germany, Denmark, Finland, Ireland, Israel, Italy, Norway, the Netherlands, Poland (the world’s 5th largest producer before the 1999 ban), the UK, Sweden and Switzerland) and Chicago has outlawed its sale. In this case, the goal is to discourage cruelty to animals. California will also outlaw the sale of foie gras as of 2012 and the city of York in Great Britain is considering adopting a similar measure. The restaurant industry is therefore being subjected to new standards that may, in some cases, be very restrictive.

Where does Canada stand on the issues?

When it comes to foie gras, Canada remains a country open to both its production and sale. However, the elimination of trans fat is another matter. Since November 2004, Health Canada has been working with the Heart and Stroke Foundation of Canada to develop recommendations and strategies for reducing trans fats in foods to the lowest level possible. Canada was also the first country in the world to make trans fat labelling mandatory (December 2005). A proposal to phase out trans fats was tabled, but in the fall of 2005, agro-food industry representatives successfully petitioned the federal government to postpone the measure to give them time to develop alternate solutions.

Nonetheless, Canadian lawmakers are very aware of the issue and will most likely move to outlaw or severely restrict the use of trans fats in the near future. Some establishments have already adapted their menus accordingly. As of December 2006, the Pacini restaurant chain was still the only Canadian chain to have completely eliminated all artificial trans fats from its menu. This change was made with the help of clinical nutrition and cardiology specialists from the Centre hospitalier de l’Université de Montréal (CHUM) and is a concrete example of the feasibility of such adaptations. The A&W chain has significantly reduced the use of trans fats, while Starbucks has committed to eliminating them from its menu by the end of 2007, in both Canada and the US.

At the present time, there are no proposals in Canada to require calorie labelling for restaurants offering standardized menus. However, it will be interesting to follow the evolution of this awareness-building trend in other cities and states; we may be pulling out our calculators in restaurants sooner than we think!

A plus for tourism?

Although the regulations discussed here have been implemented for other reasons, their impact on tourism is also worthy of consideration. A key element in the tourist experience, food can even be the primary travel motivator. At the same time, consumers are increasingly health conscious, especially with the advent of more information about the dangers of trans fats, GMOs (genetically modified organisms), mad cow disease and the avian flu, in addition to being motivated by ethical or environmental considerations. As such, the number of regulations and incentives to reflect these consumer concerns are likely to increase.

The elimination of trans fats is part of this trend. Whether it is the subject of a municipal ordinance or simply a hotel or restaurant policy, it could be a differentiation strategy worth studying. Like the smoking ban enacted in bars and restaurants, it is attractive to many types of tourists. Although such changes can be costly, they will have to be made sooner or later. Be proactive and help your business take full advantage of its foresight!

Sources:
– The New York City Department of Health and Mental Hygiene. Press releases of September 26 and December 5, 2006, [www.nyc.gov].
– Association des restaurateurs du Québec. Press releases of October 4, 2006, and September 8, 2005, [www.restaurateurs.ca].
– Boyd, Christopher. « Loews Hotels Set To Ban Trans Fat, » Orlando Sentinel, December 9, 2006.
– Rosolen, Deanna. « Marketing to Quebecers, » Food in Canada, June 2004, Vol. 64, No. 5.
– Quan, Shuai and Ning Wang. « Towards a Structural Model of the Tourist Experience: An Illustration from Food Experiences in Tourism, » Tourism Management, June 2004.
– Health Canada. [www.hc-sc.gc.ca].

Catégories
Facts and figures Geographic markets Management

Number of tourists or tourism revenues?

Should tourism-industry growth be measured in international arrivals or in economic benefits? Which category would we rather be performing best in? Where does Canada stand in the stats? In a country-by-country comparison, we realized we were on the wrong track in trying to analyze the increase in international tourism revenues in 2004 compared to 2003.

Baffling figures

The World Tourism Organization (WTO) reported that – after declining for three consecutive years – international tourism revenues rose 9% in 2004, while also making it clear that this increase was expressed in local currencies at constant prices, thus neutralizing the effects of exchange rate fluctuations and inflation.

When you look at the 2004 growth of international tourism revenues over 2003 in US dollars (WTO statistics), there is much to be amazed by!

  • Worldwide, the increase was 18.8%.
  • Asia-Pacific posted an increase of 31.8% and the Middle East 24.8%.
  • In Europe, only one country (Hungary) posted growth of less than 10%.
  • In Asia-Pacific, a majority of destinations (12 out of 15 countries) experienced an increase of more than 20%.
  • Canada can be thrilled with a 21.8% increase in tourism revenues.

However, when you look at the 2004 growth of international tourism revenues over 2003 in euros (WTO statistics), there is much to be disturbed by!

  • Worldwide, the increase was 8%.
  • Asia-Pacific posted an increase of 19.8% and the Middle East 13.5%.
  • In Europe, only two countries (Ukraine and Poland) posted growth of more than 10%.
  • In Asia-Pacific, just under half the destinations (six out of 15 countries) experienced an increase of more than 20%.
  • Canada did well with a 10.7% increase in tourism revenues.

In light of these statistics, it becomes difficult to compare revenue growth rates among countries. In effect, if the yen gained more ground against the euro over the year than the Canadian dollar did, the growth rate reflects the change in the exchange rate as much as the change in revenues. It would be fairer and more illuminating if the revenue statistics were produced in local currencies and constant prices.

In which category do we want to perform best?

France was the No. 1 destination in the world in international arrivals, but third in tourism revenues. And not only did France post the worst showing in terms of average spending per international arrival among the top 12 revenue-makers, it performed worse than many other destinations as well. Conversely, the US was third in arrivals, first in revenues, and did very well in average spending (Table 1).

Unfortunately, the lack of statistics on such factors as length of stay prevents a more precise picture of the situation. But other interesting points emerge from juggling the statistics (tables 1 and 2):

  • The US had 38% fewer arrivals but 45% more revenues than France. The tourist visiting the US spent three times more than in France, or $1,616 US versus $544 US.

  • The US and Germany did well in all three categories (revenues, arrivals and average spending).

  • In 2003, Australia was the top performer in average spending, according to the statistics (4.4 million arrivals, $10.3 billion US in revenues, average spending of $2,370 US). In 2004, it was in 10th position in revenues, but did not make it into the top 20 in arrivals (the Netherlands was in 20th place, with 9.6 million). It essentially posted the same revenues as Canada, with four times fewer arrivals than Canada.

  • Japan and Belgium (2003 arrivals data) were in the top 20 in revenues (in 20th was Malaysia, with $8.2 billion US), but did not make it into the top 20 in arrivals. Their ratio of average spending was obviously very high.

  • Although they didn’t make it onto the list of top 20 revenue earners, many countries (Table 2) managed to turn in better performances on average spending than some of the top 20 revenue-earning countries.

  • Hong Kong, Poland, Hungary and Ukraine, all in the top 20 in arrivals, fared poorly in average spending, at less than $500 US.

  • Despite six million arrivals, Tunisia did not manage to generate substantial economic spin-offs, with average spending of just $318 US per international arrival.

  • With average spending of $702 CAD in 2004 (3.3 million foreign tourists and 2.3 billion CAD in revenues), Quebec surpassed the Canadian average.

What should we conclude?

When figures show France can be proud of recording 75 million international arrivals but that it managed to obtain an average spending rate of only $544 US, you have to ask yourself if the statistics speak for themselves, if they should be challenged, if information essential for accurate analysis is missing, if the methodologies were consistent?

An analysis of the data leads to the conclusion that more arrivals do not necessarily equal more revenues. In this vein, many countries would like visitors to spend more.

In the UK, the Office for National Statistics recorded an 11% increase in tourists in 2004 (27.3 million) compared to 2003, and an 8% gain in revenues (£12.8 billion). Despite these positive results, VisitBritain is obviously working to raise visitor numbers, but in particular to boost how much they spend.

Among the leading destinations, Italy had a relatively poor 2004 compared to 2003. The 2.2% dip in the number of overnight stays (336.8 millions) and the 2.4% decline in the average length of stay (4.06) cast a shadow over the revenue picture.

The situation was similar for tourism professionals in Spain, where « fewer tourists and more profitability » has become the new credo of major hotel chains and others in the industry. Government officials also feel it would be better to have fewer tourists, but for longer stays. Visitors numbers advanced 3.4% in 2004 (53.6 million), but revenue volume did not keep pace, constituting a drop in average spending.

In Quebec, the Association touristique régionale (ATR) de la Gaspésie faced a similar situation: while tourist numbers rose, visitors were not staying as long or spending as much as previously. To counter the problem, the ATR increased its presence in promotional markets, invested in training programs based on the client approach, and launched a « Quality » initiative.

Obviously, the methodology and recording of data can differ from country to country, making comparisons difficult. But beyond the figures, the question remains interesting: is the goal to attract more tourists with all the consequences of that, or is it to increase economic benefits in a perspective of sustainable development?

Sources:

– Alves, Jose. « L’Espagne remet en cause son modèle touristique, » Les Échos, No. 19338, January 27, 2005, p. 26.
– McGrath, Ginny. « Britain Needs Big Spenders, » Travelmole, February 9, 2005.
– World Tourism Organization. « Tourism Highlights, » 2005 edition.
– Voilà.fr. « L’Italie a connu une mauvaise année touristiques en 2004, » [www.voila.fr], February 11, 2005.

Catégories
Facts and figures Geographic markets

American tourists: Where have they gone?

In 2004, Americans once again began travelling to foreign destinations in large numbers, but they seem to have ignored Canada. The number of U.S. international tourists ?all destinations combined ? reached a record high of 61.8 million that year, surpassing the previous record set in 2000. And yet, since the new millennium, Canada has noted a significant decline in the number of U.S. visitors. From 2000 to 2004, this figure fell 21.3% and preliminary data for the January to October 2005 period show a decrease of 8.7% compared to the same period in 2004.

Fewer U.S. visitors to Canada

The marked decline in the number of Americans travelling to Canada is of concern to the entire tourism industry, although the drop has not affected all the provinces in the same way. In fact, from 2000 to 2004, compared to the other Canadian provinces, Quebec appears to have been less affected by the Americans’ decision to desert Canada.

If we do a monthly comparison of U.S. arrivals to Canada in 2000 and 2004 (Graph 1), the slump is proportionally less significant during the summer months (June: -18.8%, July: -16.5% and August: 19%). However, in absolute numbers, losses are the highest during the months of the high season (July: 981,777 visitors and August: -1,079,657 visitors).

Major drop in same-day visitors

It is important to note that 98% of the decline in U.S. visitors to Canada is due to a sharp drop in same-day visitors, a situation that affects Ontario in particular since this province welcomed three-quarters (74.4%) of the total U.S. same-day visitors in 2000 (Table 2). From 2000 to 2004, the number of same-day visitors to Ontario fell by over 7.5 million.

Therefore, if we look solely at the number of tourists (Graph 2), the decline in the U.S. travel market is much lower, proportionally speaking. In fact, from 2000 to 2004, the number of Americans spending one night or more in the country dropped a mere 1.11%. During the same period, Quebec even recorded an increase of 3.38%.

2002: Base year or exception?

In 2002, Canada welcomed a record high of 16.17 million U.S. tourists. This increase of nearly 650,000 tourists compared to 2001 occurred at a time when the number of U.S. travellers to international destinations plummeted 1.3 million. Of course, this extraordinary performance can be explained, in part, by the public’s reaction to the events of 2001: travellers sought safety by staying close to home.

The 2002 increase was fuelled primarily by a jump in leisure travel since the number of business tourists in this record year only reached 1.96 million, a decrease compared to the 2.16 million recorded in 2000 (Graph 3). Furthermore, for the past several years, business travel has made up a proportionally smaller share of Canada’s U.S. travel market.

2005: The true decline begins

Preliminary data for the year 2005 (January to October) illustrate a trend of concern to the entire Canadian tourism industry, particularly that in Quebec.

This drop appears to be due to border markets, because in the first ten months of 2005, the number of American tourists arriving by car dropped 13.5%, while the number of those using other modes of transportation increased 6.4%.

Americans travelling to see the world

In 2004, Americans travelled abroad as never before, surpassing the record set in 2000 (61.8 million vs. 61.3 million). However, during this same period, Canada recorded a decrease of nearly 175,000 U.S. tourists. An analysis of the regions visited (Table 4) demonstrates a major shift in the international travel habits of Americans.

According to Table 4, non-traditional destinations are enjoying an upswing in interest on the part of American travellers. At the same time, traditional destinations (Canada, Mexico and Western Europe) saw their market shares drop sharply from 2000 to 2004 (Graph 4).

Preliminary data from the U.S. government for the period January 1 to September 1, 2005, show that U.S. air traffic to overseas destinations rose 5%. Once again, Central America (+14%), Asia (+10%), South America (+9%) and the Middle East (+8%) recorded increases superior to that of Europe (+3%).

The Canadian tourism industry, which still hopes to repeat the success of 2002, must accept that things will never get « back to normal » because American and global realities have been so profoundly altered.

The situation according to the Canadian Tourism Commission (CTC)

In the fall of 2005, the CTC formed a task force to examine the U.S. market. Its preliminary findings seem to confirm that Canada cannot blame factors like SARS, the war in Iraq, exchange rates or border-crossing issues for the country’s failure to attract U.S. tourists. The Americans interviewed by the CTC note that while they have no specific reasons for staying away from Canada, they are not motivated to come here either. This means that Canada is not successfully distinguishing itself from other destinations in an increasingly competitive field. The CTC’s final report is expected in late January 2006.

Sources:
– Canadian Tourism Commission. « US market taskforce expands mandate, » Tourism, Vol. 002, Issue 11, November-December 2005.
– Ontario Ministry of Tourism and Recreation. « Regional Tourism Profile – Provincial Markets Shares », www.tourism.gov.on.ca/english/tourdiv/research/rtp/2003/
ComparitiveReportsProvinces/index.html
– Statistics Canada. “International Travel Survey,” Catalogue No. 66-001-PIB, January 2000 to October 2005.
– U.S. Department of Commerce, ITA, Office of Travel and Tourism Industries. “U.S. Citizen Air Traffic to Overseas Regions, Canada; Mexico 2005,” www.tinet.ita.doc.gov, 2005.
– U.S. Department of Commerce, ITA, Office of Travel and Tourism Industries. « U.S. Resident Travel Abroad Historical Visitation – Outbound 1994-2004, » July 2005.