The Issues

Marketing

Issues

  • With natural beauty, vibrant and safe cities, an impressive culinary scene and breathtaking adventure experiences, Canada has a lot to offer visitors.

  • Recent project investment for US marketing is helpful but for long-term success across the globe, a Destination Canada that is aligned with industry needs and encourages partnering investment is essential for success.

  • Problem: Canada’s current international tourism marketing budget is inadequate to position Canada competitively in key global markets.

Recommendations

  • Replace Destination Canada’s current A-based funding with a new, performance-based funding model that is contingent upon incremental growth in international arrivals to Canada and leverages a minimum of 1:1 in industry partnership investments. TIAC believes that $100 million of annual funding is required for Destination Canada to be globally competitive and effective.
  • Retain and expand the federal investment in Connecting America leisure marketing campaign into the United States.

 

Access

Issues

  • Based on Canada’s vast geography, efficient and affordable aviation travel is necessary to facilitate economic growth through domestic and international travel.

  • Problems: Canada has the best airport infrastructure in the world but the burden of taxes, fees and levies imposed on the airfares results in over 6 million Canadians choosing US border airports annually.

    Canada is the only country in the world that imposes all associated costs of air travel onto travellers distorting the cost of air travel to and within Canada by as much as 40%.

  • In 2015, the WEF ranked Canada 118 out of 141 countries for openness of visa requirements.

  • Problem: Despite some progress, Canada continues to struggle with a reputation as being a difficult country for visa applications. This is especially true in some of our key growth markets: China, Brazil, India and Mexico.

Recommendations

  • Reduce the fees, taxes and levies imposed on air transportation to and within Canada.

  • Support intermodal infrastructure projects.

  • Expedite the removal of visa requirements for Mexico and Brazil.

  • Utilize international treaties and the electronic Travel Authorization program to eliminate visa requirements for “low-risk” travellers from all priority markets.

  • Continue to improve and simplify the processing of travel documentation for legitimate travellers to Canada including using electronic travel authorization to lift restrictions for some countries.

     

 

Product

Issues

  • Tourism relies on front-line staff to deliver quality service to travellers and create memorable experiences.

  • Problem: The current labour shortage, particularly in western Canada, is forcing many tourism businesses including attractions, hotels and restaurants to reduce hours of operation, close hotel rooms and eliminate food services.

  • By 2030 labour shortages in tourism are expected to surpass a quarter million jobs costing the sector $31.4 B in forgone revenues.

  • We can enhance Canada’s natural tourism assets through the development and promotion of festivals, events, natural and historic sites.

  • Problem: In order to differentiate ourselves from the competition, Canada’s tourism products need financial support.

  • Create equitable treatment of all export products and services by zero-rating the purchase of tourism products and services by foreign visitors to Canada.

  • Problem: Current FCTIP program too complicated to incent travel.

  • Travel is the only export product/service that is not zero-rated, undermines Canadian competitiveness on price-point.

Recommendations

Developing labour market solutions that meet the supply, training and retention of Canada’s travel industry.

  • Develop labour market solutions that meet the supply, training and retention needs of Canada’s travel industry.

  • Long-term solution through immigration reform to attract workers of all skill levels to meet Canada’s labour market needs.

  • Short-term fix by creating a seasonal tourism stream of the Temporary Foreign Workers program similar to the agricultural stream.

  • Reform the programs and public policies that serve to dissuade full domestic participation in the national labour force.

  • Include travel and tourism in economic development and regional infrastructure programs e.g. sport and cultural event hosting.

  • Remove the federal sales tax from Canadian travel products and services purchased outside of Canada. This will align tourism with other Canadian exports and reducing the price of Canadian tourism experiences from 5-15% depending on the province.


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