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Why does Canada’s share of thriving tourist industry continue to shrink?

Thursday, 1 March 20073 min read

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