Canada’s Travel and Tourism Industry
The industry offers transportation, accommodation, food, beverages and a wide range of
Goods and services for international and Canadian visitors touring
$71.5 billion in spending in 2009.
Leisure travel accounts for 85% of this spending and 15% commercial travel.
Travel and tourism GDP reached $29 billion in 2009
on an equal footing with the auto industry and
with forests and agriculture combined.
In total there were more than 180,000 Canadians
Companies involved in the recruitment of tourism
650,000 people directly; 3.5% of the total.
Industry meets leisure and business travelers from the United States and abroad and to Canadians traveling in Canada. International travel covers all United States and overseas travel by all media. It is the most profitable part of the market, followed by overnight travel and tourism by Canadians. The same day for domestic travel and tourism has a much lower return.
Changing Market Demands
By 2020 daily flights by Canadians in Canada had risen to 127 million, while overnight flights remained less than 90 million and international flights dropped to 27 million.
Canada’s Growing Tourism and Travel Deficit
Additionally, the drop in U.S. tourism has coincided with a declining value of the U.S. dollar which has in turn motivated more Canadians to travel to the US.
This has created a significant “tourism deficit”in Canada’s international trade and also provided an additional competitive advantage for U.S. airport gateways in attracting international traffic.
Travel to the United States and abroad to Canada decreased, along with the increase of Canadians’ travel to the United States and overseas resulted in a trade deficit and travel of $12.6 billion
Canada’s Does Not Spend Enough on Marketing Itself Abroad
Canada Tourism Authority leads marketing efforts in Canada in: Australia, Brazil, China, France, Germany, India, Japan, Mexico, South Korea and the United Kingdom as well as in Canada. Primarily responsible for marketing “Canadian Brand” abroad
Canada’s Marketing Budget Compared
This pattern weakens the core capacity of the CTC to market the Canadian brand and to take important promotional initiatives to develop new and emerging markets. This inability to strengthen Canada in new markets comes at a critical juncture, such as the growing middle classes of Brazil, Russia, India, China, and South Korea, to expand global tourism.
In the 2008/2009 fiscal year, the core funding of the Counter-Terrorism Committee was $76 million. An additional $20 million was a result of two years, an increase of $40 million in funding for the Counter-Terrorism Committee as part of the Canadian Economic Action Plan. Contributions from the CTC partners brought the total budget.
Investment in Tourism Infrastructure
The changing markets for Canada’s travel and tourism sector (from the value of the highest international flights to the most frequent, but low value, daily flights by Canadians) mean that travel and tourism companies have to work hard to earn the same revenue. This also means that margins for contracting and firms are unable to attract what capital is needed for improvements in their products or new products that improve competitiveness.