The federal government`s failure to invest enough in marketing Canada…
The federal government`s failure to invest enough in marketing Canada as a tourism destination is costing Canada jobs, threatening the future of communities across the country and choking off a significant source of tax revenue, warns the group representing the interests of Canada`s 159,000 tourism businesses.
In response to Canada`s mounting travel deficit-it now stands at $3.2 billion, a level not seen since the early 1990s and up from $1 billion in 2000-the Tourism Industry Association of Canada (TIAC) today released a
compelling business case for increasing public funds for tourism marketing. Spending by Canadians travelling abroad is rising, while the amount spent here by foreign travellers continues to fall. According to Randy Williams, TIAC`s President and CEO, woefully inadequate public investments in tourism marketing are largely to blame. Canada is facing fierce competition in international tourism markets and risks being left behind, he said. In fact, some U.S. cities have larger tourism budgets than Canada.
Tourism marketing is an investment, not an expense, noted Mr. Williams.
Tourism is big business in Canada, and a key driver of economic growth and prosperity. He pointed out that Canada`s tourism industry keeps 1.4 million Canadians working, supports community and economic development, and generates $15.3 billion in tax revenues that finance programs like health care and education. The federal share is estimated at $7.5 billion.
Tourism represents windfall revenue for the current government, which has done nothing to ensure the industry`s growth and development. And continuing this trend, the Liberal election platform doesn`t even acknowledge
tourism, Mr. Williams said. We`re simply asking Ottawa to re-invest a tiny fraction of that revenue in maintaining and increasing the significant contribution that tourism makes to Canada`s economy, its standard of living as a nation, and Canadians` quality of life.
TIAC is calling on Ottawa to give Canada`s national tourism marketing agency, the Canadian Tourism Commission (CTC), a bigger budget to encourage Canadians and international visitors to spend their tourism dollars in Canada. That spending totalled $51 billion in 2003 alone.
The CTC currently receives $83 million in core funding from the federal government. But $5 million of that total has been clawed back in each of the last two fiscal years. This funding cut has come at the worst possible time, Mr. Williams pointed out. The industry is still emerging from the `perfect storm` that brought many tourism businesses to their knees. Now, when they need help the most, they`re being handcuffed by Ottawa`s refusal to recognize their needs.
TIAC wants the CTC`s core funding maintained, and a $25 million increase in its annual marketing budget-an amount that will be fully matched by industry partners. The increase would bring the CTC`s budget to $108 million,
a level that better reflects the importance of tourism to Canada and that is competitive with other countries.
The federal government has given billions of dollars in aid to other sectors in times of crisis, but tourism, which lost $1.7 billion because of SARS alone, continues to be ignored, noted Mr. Williams. And this despite the fact that tourism marketing funding typically yields an excellent return on investment. He cited the CTC`s U.S. 2003 summer campaign, which generated $96.7 million in total revenues on a one-time marketing investment of $4.2 million, and its Canadian 2003 summer and fall I Can campaign, which generated revenues of $147.8 million on an investment of $3.1 million. These two marketing campaigns directly created 2,500 new tourism jobs.
Mr. Williams stressed the urgency of increasing tourism marketing funding. It`s already too late for this summer`s peak tourism season, but our businesses need the investment now in order to survive the difficult fall and winter months.
Although tourism marketing remains the number-one issue for the industry according to successive TIAC surveys, the association issued a reminder that there is a sustained need for other actions in support of tourism and travel
in Canada. Meanwhile, the federal government appears to have put a national tourism strategy on hold, and the Momentum Fund it promised last year never materialized.
With the federal election campaign underway and Tourism Week in Canada approaching (June 20-26), TIAC is urging all national political parties to recognize the importance of tourism, and to undertake to address its critical needs.
Business Case for Increased CTC Funding is available at
http://www.tiac-aitc.ca/images/Businesscase_CTCfunding.pdf.
The Tourism Industry Association of Canada is the leading national private-sector advocate for policies and programs that enhance the viability and sustainability of Canada`s $51 billion tourism industry.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
