If you are a member of the Tourism Industry Association of Canada, you must have received an email from its president, David Goldstein, on July 19 regarding the restructuring of the Canadian Tourism Commission. The email basically describes what the CTC announced on July 16 (although I could not find a release or an article about it on the CTC's website). The main points about the CTC's restructuring in David's email are the following:
- Ceasing to invest in direct-to-consumer advertising in the United States, and ceding the way to other Canadian destinations which are already invested in this area.
- Centralization of resources to ensure the affordability of CTC’s international operations. This includes using the London office as the regional hub for the traditional markets of U.K., France, Germany and Australia, and supplementing in-market efforts with the assistance of General Sales Agents.
- Making use of resources at the CTC Vancouver Headquarters as the regional office for new and emerging tourism markets (Korea, China, India and Brazil), as well as for markets in transition (Japan and Mexico).
Basically the CTC will not partner in consumer advertising in the US with the provinces, territories and cities and it will need to do more (or try to stay the course) with less regarding our international markets - it is not clear to me whether the CTC will be closing its offices in Japan and Mexico.
David's message goes on to remind us that "According to the UNWTO, Canada dropped from 7th to 15th in terms of international tourist arrivals between 2002 and 2009. TIAC believes that Canada is losing competitive ground in the global tourism marketplace. If Canada is to compete in the global tourism market, and make the most of the opportunities in one of the fastest growing sectors in the world, we will need a strong marketing voice."
Given these changes, What do you think the result will be in the next couple of years? We will probably see a continuing decline from US visitors (considering that America's economy is still weak). But this decline might not be across the board. I expect to see more inter-provincial and inter and intra city partnerships targeting the US, e.g. Ontario/Quebec, Toronto/Montreal, BC/Alberta, all Atlantic provinces together, Vancouver and Whistler, Calgary and the Rockies, etc. I think that the right partnerships with the right creative campaigns will be able to see very positive results. Nevertheless, the loss of the CTC's support will have an impact and it will be missed.
As for international markets, it remains to be seen how the CTC will manage its core territories with less resources. The private sector will have to step up to the plate and find ways to market Canada despite the lack of tax payers support. The US did it for years, although it is ironic that last year it passed its Travel Promotion Act S. 1023, that when implemented (not sure if this has been done or will be in the near future), it will generate over one hundred million dollars for tourism promotion. I have advocated for a similar measure in Canada since I heard of the American TPA. Canada, as many other countries already do, should implement a $10 to $15 tourism promotion fee on international tourists and use all the proceeds to fund the Canadian Tourism Commission in a consistent and predictable manner.
Jaime
