High oil prices are squeezing business that rely on travellers for their livelihood, says the head of the Tourism Industry Association of Canada.
"It is a drag on tourism for sure," chief executive Randy Williams said in an interview.
In the wake of several record-smashing weeks, analysts have said that once the summer driving season kicks in, a litre of gasoline could be worth between C$1.30 and $1.40.
The prospect of expensive gas may cause drivers to balk at road trips they may have been planning for the summer. And travellers opting for planes, trains and coach buses may be hit by fuel surcharges.
"When the cost of fuel goes up it means the cost for airlines in particular is much higher and usually they have to pass on those costs to travellers because the cost of fuel represents such a significant part of the airline industry," Williams said.
For drivers "it has the effect of maybe reducing some of the distance travelled or even their ability to travel by car or away from their home."
Despite higher gas prices, sales in recreational vehicles went up by 13 per cent last year compared to 2006, said Catherine Fortin LeFaivre, a spokeswoman for Go RVing. "People buy into the lifestyle because of the savings associated with it," she said.
For instance, people who travel in RVs eat fewer meals in restaurants and pay only $20-$40 for a campsite instead of hundreds of dollars for a hotel room.
