U.S. visitors vital to Canadian tourism: TIAC

Canada is lagging behind the world in terms of travel and tourism growth but can take steps to reverse that trend – in part by attracting more U.S. visitors, according to a new report by the Tourism Industry Association of Canada.

TIAC and HLT Advisory recently released the 2014 Annual Report on Canadian Tourism: Focus on the US Market, which, in addition to reporting global and domestic statistics, focuses on the United States, described by TIAC as Canada's ‘best customer, biggest competitor and a potential gateway to growth in international visitation through the promotion of bi-national travel.’

According to TIAC, travel and tourism is growing at a global annual rate of five per cent, while Canada's global competitiveness is undermined by a few long-standing public policy issues that serve to limit annual growth to 1.5 per cent.

According to the report, Canada's travel and tourism industry posted a $700 million increase in annual receipts from overnight visitors to Canada between 2000 and 2012.  However, the report states that when adjusted for inflation in 2007 constant dollars, the industry actually experienced a 25 per cent drop in real value over that same period.

With domestic travel accounting for over 80 per cent of total demand, the report states that Canada must do more to increase market share of lucrative international visitors, particularly from the United States. International travellers stay longer and spend more, thereby driving investment and profitability across the industry, said TIAC.

In 2012, while three out of four visitors to Canada were American, U.S. arrivals to Canada have declined by 54 per cent since 2000. While the downturn is attributable to numerous economic and security factors, TIAC said that improved U.S. economic conditions and record high passport ownership could boost those numbers.

According to TIAC, an average visitor growth rate of five per cent could mean an additional $5 billion in spending and $1.7 billion in tax revenue. The organization aims to achieve that goal by 2020.