The American tourist is missing in action.
Long the backbone of Canada's tourism sector, Americans are no longer coming to Canada in the numbers they once did. And the news could get worse before it gets better.
More than just the usual suspects - confusion over entry and passport requirements, a stronger loonie and the post-9/11 cocooning effect - are behind the drop in American visitors. The looming U.S. recession and the fact that Americans tend to stay home and travel less during a presidential election year are also big factors.
If that isn't enough to depress Canadian tourism operators, other countries are elbowing their way into the U.S. marketplace with bigger marketing budgets and tourism campaigns aimed at enticing Americans to destinations such as Mexico and the Caribbean.
"Our tourism industry depends greatly on the U.S. market. It represents four out of every five visitors to Canada," says Randy Williams, president and CEO of the Ottawa-based Tourism Industry Association of Canada (TIAC).
Americans made 42 million day or overnight visits to Canada in 2000, a number that dropped to 28 million visits in 2006. And TIAC says the tourism sector should not expect a major recovery any time soon.
"I don't think this problem can be corrected," says Williams. "It's something this industry has to adjust to. The American market will never come back to where it was.
"The record in 2000 for American travellers (to Canada) may not be met for another 20 years."
But while TIAC is not throwing in the towel, it says the industry - which employs an estimated 1.6 million Canadians - will need time to adapt. "It takes time to change in our industry because it's so diverse and so large. It's more like turning a ship than turning a rowboat," says Williams.
Methods being considered include bigger marketing pushes into the U.S. and having tourism organizations partner together to pool and leverage research and intelligence.
But it might be some time before any new campaigns are launched. Some regional tourism bodies say they want to know the exact state of the market - and what areas to target with the right message - prior to making any new marketing moves.
However, there are bright spots. TIAC says research shows Canada still has what many American travellers are looking for.
"The American perception of Canada - of our product mix - hasn't changed much," says Williams.
"What we have is pretty typical to what they have; (but) it isn't exotic enough.
By Laura Severs Business Edge
The American tourist is missing in action.
Long the backbone of Canada's tourism sector, Americans are no longer coming to Canada in the numbers they once did. And the news could get worse before it gets better.
More than just the usual suspects - confusion over entry and passport requirements, a stronger loonie and the post-9/11 cocooning effect - are behind the drop in American visitors. The looming U.S. recession and the fact that Americans tend to stay home and travel less during a presidential election year are also big factors.
If that isn't enough to depress Canadian tourism operators, other countries are elbowing their way into the U.S. marketplace with bigger marketing budgets and tourism campaigns aimed at enticing Americans to destinations such as Mexico and the Caribbean.
"Our tourism industry depends greatly on the U.S. market. It represents four out of every five visitors to Canada," says Randy Williams, president and CEO of the Ottawa-based Tourism Industry Association of Canada (TIAC).
Americans made 42 million day or overnight visits to Canada in 2000, a number that dropped to 28 million visits in 2006. And TIAC says the tourism sector should not expect a major recovery any time soon.
"I don't think this problem can be corrected," says Williams. "It's something this industry has to adjust to. The American market will never come back to where it was.
"The record in 2000 for American travellers (to Canada) may not be met for another 20 years."
But while TIAC is not throwing in the towel, it says the industry - which employs an estimated 1.6 million Canadians - will need time to adapt. "It takes time to change in our industry because it's so diverse and so large. It's more like turning a ship than turning a rowboat," says Williams.
Methods being considered include bigger marketing pushes into the U.S. and having tourism organizations partner together to pool and leverage research and intelligence.
But it might be some time before any new campaigns are launched. Some regional tourism bodies say they want to know the exact state of the market - and what areas to target with the right message - prior to making any new marketing moves.
However, there are bright spots. TIAC says research shows Canada still has what many American travellers are looking for.
"The American perception of Canada - of our product mix - hasn't changed much," says Williams.
"What we have is pretty typical to what they have; (but) it isn't exotic enough.
"They're looking for exotic experiences, exotic locations ... things like dog-sledding, bungee-jumping and heli-skiing, even staying in an ice hotel. We have these kind of experiences that are very unique and yet the Americans don't see Canada that way," says Williams. "We've got to change those perceptions."
Another obvious draw is the 2010 Winter Olympics in Vancouver, plus major tourism developments such as a new convention centre, hotel and entertainment complex in Windsor, Ont., that will open later this year, and an expanded Casino Windsor that will reopen under the Caesars brand.
Chris Simpson is president of Vancouver All Terrain Adventures, a "soft adventure" company offering high-end, unique adventure excursions. He is trying to remain optimistic despite a possible U.S. recession that could put the American tourists he covets even further out of reach.
The U.S. represents All Terrain's primary inbound market.
Yet it has already seen a drop from its U.S. clientele due to the high Canadian dollar and uncertainty over documentation required to cross the border.
"We do have the Olympics coming and this will bring increased awareness," Simpson says, adding that still he expects the market to soften a bit. "There's not going to be the growth we anticipated, we will be a bit flat this year. We've already begun to revaluate our expansion plans for the coming 12 months. Our plan is to hold tight to see how things settle (in the U.S.)
Tourism Vancouver is projecting a decline in overnight visits from the U.S. to Vancouver for 2008, but says an expected decrease last year didn't pan out and the market remained flat.
"It was a little more bullish than we anticipated," says Stephen Pearce, vice-president of leisure travel and destination management for Tourism Vancouver.
Pearce attributes that to a year-round marketing campaign specifically geared to Seattle. "Our short-haul market (Seattle) did well," he says.
"Going into 2008, we knew we were going to be challenged in the U.S., absolutely. Another variable is Canada's competitiveness as a destination. The rest of the world is going after the U.S. vacationer and their domestic tourism industry is working hard to keep Americans in America," he adds.
Gordon Orr, managing director of the Convention and Visitors Bureau of Windsor, Essex County and Pelee Island, says American tourists are vital to tourism in the area.
About 85 per cent of the region's tourists come from the U.S., primarily the states of Michigan and Ohio.
"Without question, 9/11 changed the reality of tourism visitation to this region," Orr says. "Prior to 2001, we enjoyed 9.1 million visitors annually (including non-American visitors). Now we enjoy over five million visitors."
In Alberta, the decline in overnight travellers concerns officials in Edmonton.
"There is no question that the U.S. is an important market to us," says Ken Fiske, vice-president for tourism, events and motion pictures for Edmonton Economic Development Corp. "Behind the Canadian market, it's our next biggest market by far."
Fiske says the decline in the U.S. market and a higher loonie luring more Canadians south is a "double whammy. But we're going to wait and see until we know what's exactly going on. Until then, I don't think it makes a lot of sense to put money into the U.S."
(Laura Severs can be reached at laura@businessedge.ca)
