The Canadian tourism industry is on the brink of crisis due to structural problems, appreciation in currency and economic recession in the US.
The Tourism Industry Association of Canada said that the structural problem in the Canadian tourism sector has brought the sector on the verge of crisis, as reported by ctv. The Association further said that if the tourist arrivals remain low, then it will directly cause downsizing in the sector.
There has been a significant reduction of nearly two million foreign tourist arrivals in Canada during last six year (2002-2007). Tourist arrivals from the US have climbed down at a rate of 41% since 2000. Presently, the US tourists to Victoria account for around 25% share, a considerable decline from 36% in 2000.
The biggest hit to the Canadian tourism industry has come from the strong appreciation in the Canadian dollar that made vacation expensive for Americans as they make the largest group of foreign tourists to the country. The US has been struggling with economic recession because of credit crunch and shooting fuel prices. As a result, the Americans are giving preference to domestic vacation hubs instead of visiting foreign country.
Furthermore, enjoying vacations in Canada are much more expensive than many other countries of the world owing to high costs. The Canadian government’s plan to hike taxes and other fees are further worsening the situation for the country’s aviation sector, which is already thrashed by high prices of fuel.
Besides these, the already under-pressure Canadian tourism industry is further tormented by the lack of connectivity with other countries. British Columbia (B.C.) has no direct air link with two important markets - France and India; therefore, visitors from these two nations avoid coming to Canada.
According to a Research Analyst at RNCOS, “The Canadian tourism industry is standing at the edge of a crisis, primarily due to significant reduction in the US tourist arrivals because of recession in the US economy and surging fuel costs. So the government should cit taxes and charges that need to be paid by aviation industry. Also, the government shouldn’t ignore important markets like India and France and make transportation links with these countries to offset the slide in established markets.”
Related Market Research Reports:
Indian Tourism Industry Analysis
Opportunities in Malaysian Tourism Industry (2007-2009)
China Tourism Industry Analysis (2007-2011)
