Friday 15 July 2011

Unit 4: Exercise 4-3 • Tourism Industry in Canada

Current State of Canada’s Tourism Industry

Tourism is of economic importance within all regions of Canada. Our borders contain an array land and marine ecozones desirable to the relaxed vacationer or the adventuresome explorer. Despite our magnificent offerings Industry Canada still reports that there are many challenges facing the tourism industry now and in the future. In their document “Building a National Tourism Strategy, Industry Canada states that cchanging demographics, shifting travel patterns and volatile economic conditions are key obstacles facing stakeholders.

The challenges identified to overcome and strengthen the industry are:

1.     Comprehensive research to better understand the expectations of travelers;

2.     More cohesive marketing and promotional campaigns while reflecting provincial/territorial realities and diversity in Canada;

3.     Further development of Aboriginal tourism;

4.     Human resource strategies to attract and retain employees in the industry;

5.     Investments in tourism infrastructure;

6.     Efficient and integrated transportation systems; and

7.     Broadening and adopting sustainable tourism and best practices. [1]

Statistics with regard to current and future growth within the industry vary depending on the source and the metrics used. The industry Canada Strategy notes that Canada’s market share is diminishing due to health concern, terrorist threat and the increased strength of the Canadian dollar. The Industry Canada September 2009 Tourism Highlights report indicates that tourism spending in Canada is up and the arrivals of tourists from outside our borders are down. One can conclude from this that Canadians are opting more for staycations and that the demand domestically may be elastic while the global response is inelastic.

Further statistics and information is also available from the Canadian Tourism Comission. Here is a link to their latest statistics for the month of April 2011. http://en-corporate.canada.travel/sites/Corporate/images/pdf/Research/Stats-figures/International-visitor-arrivals/Tourism-monthly-snapshot/TourismSnapshot_2011_04_eng.pdf . Again based on their data it is difficult to determine if price is a driver of demand (inelastic) for foreign visitors.




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