Any comments about the Federal Budget 2007?

Hello tourism professional, What is your take on the Federal Budget 2007 as it relates to our industry? The VRP (Visitor Rebate Progra) was not kept intact, but we must commend TIAC (Tourism's voice in Ottawa) for their unwavering effort to save the VRP. Their voice (our Tourism Industry voice) was heard by Ottawa and Minister Flaherty responded with the Creation of the Foreign Convention and Tour Incentive Program, which allows for GST/HST rebates for non-resident attendees at foreign conventions in Canada as well as Canadian conventions beginning after March 31, 2007. In addition the program will allow a GST/HST rebate for the accommodation portion of a tour package. This is very important because without a VRP a deal to bring a convention to Canada may not be competitive. In addition, allowing a GST rebate on the accommodation portion of a tour package (I assume for tourists - or tour operators in general) helps the industry be more competitive.

Other Budget 2007 highlights for tourism include:

•$51 million over two years to improve the Foreign Workers Program, which may ease labour shortages for the tourism industry;
•$30 million in funding for new local arts and heritage festivals;
•$10 million investment in Parks protected areas in the Northwest Territories;
•A new $2.1 billion fund for gateways and border crossings to improve the flow of goods and people between Canada and the rest of the world; and
•$5 million for historical sites and heritage buildings.

When it comes to Hispanic tourists - having or not having a VRP is not a deal breaker for most tourists. A VRP may be an added bonus but does not figure prominently in their decision to visit Canada. Out of the budget's highlights, more important for Hispanic tourism to Canada, in my opinion, is support for local arts and heritage festivals as well as the small help for historical sites and heritage buildings. The more festivals and well looked-after heritage sites and attractions we have in Canada the more attractive it will be to Hispanic (and other foreign) travelers. We need to encourage the creation of more festivals and new tourism attractions all over the country. Many years ago, when I visited Hawaii, I had a lot of fun at the Polynesian Cultural Center (don't know if it still exists). On occasion I have thought wouldn't it be great to have a Canadian Cultural Centre where tourists could get a "taste" of every province and territory in Canada as well as culinary and shopping opportunities. The way I envisioned it, this cultural centre would be enormous (would need a site like Downsview Park in Toronto) and would cost many, many, many millions of dollars because I believe that something like that you either do it huge and top-of-the-line or don't do it at all (but that's material for a future post).

Regards,



Jaime