The US Market and Canadian Tourism

Tweets from the Tourism Summit:

EventsWest

Great article in today's Vancouver Sun: Canada's tourism slump & what to do about it. http://ow.ly/33SzC#TIACsummit

Pierrebellerose

La Commission canadienne du tourisme se retirera du marché leisure américain pour laisser la place aux joueurs canadiens #Tiacsummit

AkBeattie

#tiacsummit Doug Fyfe sites ongoing concern affecting US tvl to CDA: Economy, Security, X-chng Rate, Competition, Product, Mktg, Consumers

The Canadian Tourism Commission, CTC, announced at the Tourism Industry Association of Canada's Tourism Summit, that it is leaving the US leisure market. Most leaders in the industry already knew this, so it didn't come as a shock to them. Veteran industry insider Doug Fyfe, speaking about the decline of the inbound US market, talked about the various issues that have contributed to that decline, issues that all of us in the industry have known for years, whether it was 9/11, SARS, the economy, security or the exchange rate. The one element Doug touched on that is very important to keep in mind is Competition. In my opinion, it is this issue, more than any others that has affected the US travel market for Canada.

Canada has lost significant market share to other destinations in the last decade. While the US economy has indeed affected travel in that country, the fact is that Americans continue to travel abroad, a fact that may surprise many. According to Forbes Traveler, based on data from the US Department of Commerce's Office of Travel and Tourism Industries, 63.6 million Americans traveled outside the US in 2008. Yes, you might say, but that was 2008, not the disastrous 2009. Well, according to an article in the New York Daily news (that quotes the Forbes Traveler research), up to May 2009 the decline of US outbound travel was only 7.7% below 2008 levels. While significant, it is not what many people would expect. Even a 10% drop in 2009 would indicate that over 55 million Americans traveled abroad last year. While Mexico is still the #1 foreign destination for Americans (negative image notwithstanding), Canada is still strong at #2 (proximity matters) receiving almost 40% of all those travelers in 2009. I personally think that the CTC's abandonment of this market jeopardizes that standing. Yes, the cities and provinces will continue to invest in the US market, but I think that the CTC's support is still important, if not critical. Consistency is also important. The US economy will come back. Will Canada be in Americans minds when it does? I don't think the lack of better results has been for a lack of effort and hard work. What I think is needed is more creative thinking and more risk taking to stand out from the crowd (yes, making it easier for travelers to cross the border and fly into Canada is very important, but only part of the solution).

What I would recommend is to look at the US with fresh eyes and to work on sending the right message not only to Americans, but, very importantly to Canadians, that Canada loves America. Whether we agree or not with their various political views, most of us do like the diverse American people. It was tweeted at the TIAC Summit that with Social Media we can reach passionate communities. True. The hard work lies in discovering and engaging those communities with the right messages about Canada. This does not mean that social media alone would do it, we still need to use traditional methods like paid advertising and most of all, be creative, be creative and be creative.

Jaime

Toronto 2015 reveals its visual brand. Viva Panam, United we Play

Toronto 2015 will be twice the size of Vancouver 2010

The budget for Toronto 2015 is $1.5 billion

10,000 athletes. 48 sports. 50 venues.

Toronto 2015 will be huge. It's anticipated that the Games will attract 250,000 visitors to the Golden Horseshoe. However, Ian Troop said at a Hispanic professionals event that as he sees the work and the planning progress, he thinks that the number of visitors could reach 1 million. I agree.

United We Play, Viva PanAm

Jaime

Canadian Tourism is getting hammered. What are you doing about your destination or business?

Because the tourism industry is a very fragmented one and employment is spread over hundreds of thousands of businesses, from large hotels to small burger joints along Ontario's Highway 400, to beds & breakfasts in Cape Breton to soft adventure outfitters in the Yukon and so on, it's an easy industry to ignore. It's not like a big automotive plant closing and laying off 2,000 people at a time which gets the attention of unions, the media and consequently the politicians and society at large. In tourism there are thousands of jobs lost when small kayak rentals operators, small receptive operators, restaurants, and others fold. Many thousands more go unreported as lost jobs because businesses froze hiring this summer and thousands of young people who otherwise would have been employed in the industry were not. The lack of jobs concentration makes it difficult for the media to write stories about the problem. And of course, we could also do better integrating all the voices of tourism across the country (Join the Canadian Tourism Community social networking site).

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Notwithstanding the above, the industry made the front page of today's Globe and Mail. The natonal paper reports that "Cross-border travel hits lowest levels on record. New passport rules prompt 26% drop in same-day trips from U.S. to Canada in June." But that's just part of the story. According to StatCan's International Travel: Advance Information Bulletin for June 2009, just about every market, primary or otherwise, was down in June and most are down significantly for the period Jan to June. And this after what was perhaps the worst May on record as well. If the year continues going this way, 2009 may see half the numbers of tourists Canada had in 1999! While it is undeniable that the last ten years have seen numerous challenges for the Canadian tourism industry, in my opinion, there are other reasons why the numbers of visitors continue to tank, one being the lack of impactful, creative marketing and advertising. The reasons for this are debatable and one reason must be, of course, a lack of sufficient resources, but another, again in my opinion, is the lack of risk taking to make our marketing and advertising break through the clutter. I believe provincial and national tourism marketing is hindered by a playing it safe mentality so as to not create any controversy (I again think of advertising in America's Super Bowl). If I sound frustrated is because I am. I believe Canada can do much better selling itself to the world (and to ourselves). And when marketers like Rod Harris leave a DMO (or are ousted), it gives me less confidence in the powers that be. By any measure of success in marketing, Rod Harris is indisputably is one of the best tourism marketers in the world (but I think even he was limited by the political considerations that sometimes - like it or not - come into play in Canadian Tourism marketing).

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On a final note, I am happy to report that of all our European markets, the ONLY one that is showing growth in the period from January to June 2009 is SPAIN. Gracias amigos españoles , Olé.

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Jaime Horwitz MBA

Cactus Rock New Media Ltd.

The Canadá en Español Network

www.canadaenespanol.ca

http://twitter.com/jaimehorwitz

Nelly Furtado launches new album entirely in Spanish

This past weekend Nelly Furtado introduced new songs from her upcoming Spanish language album "Mi Plan" at the Hard Rock in Mexico City. Canadian born of Portuguese descent (her parents are Portuguese immigrants who settled in Victoria, BC, Ms. Furtado is a bona fide international star. The fact that she chose to produce an album entirely in Spanish as oppose to Portuguese was probably a business decision given the size of the global Spanish speaking market and a testament to the importance of Spanish in the music world. Could this be an opportunity for Canadian DMO's? Did the CTC or Tourism BC sponsor her presentation in Mexico City? I don't think so, but to me this is a no brainer.

Could a Portuguese album be far behind. I think Nelly should produce an album of Brazilian bossa nova and samba inspired tunes. It would probably be a big hit not only in Brazil, but also in Latin America and Spain. Nelly Furtado's official site.

Jaime Horwitz
www.canadamigos.com

Canada top of mind among Mexican travellers, but less competitive.

"The spirit is willing, but the wallet may be weaker. That’s the message from the latest Global Tourism Watch report for Mexico, released by the Research department of the Canadian Tourism Commission (CTC). Canada boosted its performance on a number of unaided indicators in 2008, making it the No. 1 destination brand in Mexico in those criteria: destination awareness, advertising awareness and destination consideration." CTC

The Canadian Tourism Commission conducted the survey for its latest report on Mexico in 2008 so the effects of the Global Recession, the H1N1 scare, and mostly Canada's visa imposition do not show in the results. What I have observed in the last several months via my network of websites, my tour operator client in Mexico and the continuing growth of the CanadAmigos Social Networking site where I have direct contact with a large number of people is that Canada is still a desirable destination for Mexicans, albeit a more expensive one. One of the byproducts of the visa imposition to Mexicans is that their travel to Canada went up in cost anywhere from 5% to 10% or more (short term visits like a long weekend escape may not be worth their while now). This has to do with the cost of obtaining a tourist visa (temporary resident). A single entry visa costs CAD $75 per person (multiple entry visas cost $150 per person). If a couple buys a package that cost them $1,100 per person before the visa, they now have to pay 6.8% more for the same package (not counting any courier costs, etc.) While many people were able to switch dates for their trips to Canada the first week after the imposition (July 15th), I know that many changed their plans and chose to go to the States instead. At the present time, Canada has become less competitive in Mexico vis a vis the US and other destinations like Spain and South America.

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Jaime

Ban the Seal Hunt. Cutting your nose to Spite your Face - The Canadian Seal Hunt and Canadian Tourism.

For the record. I am personally against the Canadian Seal Hunt. The following post reflects my opinion only and not necessarily that of anyone else in the Canadian tourism industry. I do wonder, however, why don't I hear more voices in the industry talking about this issue. What is the industry's position on the Seal Hunt? Join the conversation.

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I find it appalling and very disappointing that Parliament unanimously approved a motion to use the Winter Games to promote seal products. Talk about cutting your nose to spite your face. The way Canadian governments have defended this practice and dying industry for so long reminds me of 6 year olds, who stubbornly cling to an old useless (and potentially dangerous) toy. What they have done with this motion is provide PETA with more ammunition to bash Canada before, during and after the Games. Besides my personal opposition to the Seal Hunt, I care about the tourism industry very much and I care about Canada's image in the world as well. I know my business has been affected (because people let me know every Spring with not very polite emails or blog comments). This "brilliant" idea from Bloc Québécois MP Raynald Blais to use the Games to promote seal products is not only not helpful to the Canadian Tourism industry, but actually harmful. Expect to see PETA activists along the route of the Olympic Torch. Expect to see YouTube videos, Tweets, Blog Posts, publicity stunts and many other PETA tactics that are not limited by political concerns as much of our tourism promotion is.

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The seal products industry is an industry in fast decline. The market for seal products around the world is sinking (and I don't personally know anyone in Canada who would buy anything containing seal products). This is a fact, whatever your position on the seal hunt may be. According to a long article about the Seal Hunt on the CBC website, the expected price for a seal pelt in 2009 is $15 per pelt. This represents a 78% drop from the price in 2006! Any first year business student would tell you, "get out of this business," the ROI is just not there. Currently, even Russia has stopped the practice, "after Prime Minister Vladimir Puttin called the hunt a bloody industry." (Globe and Mail. A6)

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According to the CBC article, the Seal Hunt constitutes only a fraction of Newfoundland and Labrador's $600 million fishery. Only about 1% of the population there derives some income from the Seal Hunt. "The governments argue that's a substantial number for rural communities, and comparable to other industries." That may be so, in percentage terms, but the writing is on the wall. With the EU ban on seal products in place, notwithstanding Canadian politicians protestations, the market for seal products is just going to decline further. The Canadian Tourism Industry is a multi-billion dollar industry which depends, in good measure, on Canada's image internationally. I don't know of any studies or surveys that quantify the loss of revenue in tourism to Canada because of the seal hunt, but I get the feeling that it's not a pittance.

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Instead of throwing temper tantrums and clinging to a dying industry, Canadian politicians and Seal Hunt advocates should calm down and work to find solutions to the problem. It's not the first time that a region has to deal with changing times, changing tastes, diminishing returns and disappearing industries. In past years, there have been ideas put forth by various people regarding how to help the sealers find other occupations. They too must see clearly that the trend is clear and they better find other sources of income. Could there be opportunities in tourism? I understand that navigating the waters off Newfoundland & Labrador in early spring might be difficult, but what about modifying icebreakers and turn them into seal observation vessels for tourists to go see the seals? What about "adotpion?" I'm just brainstorming here. But I would be willing to "adopt" baby seals every year. If the price of a pelt in 2009 is $15, I'd be happy to adopt ten seals and send $150 dollars to a former sealer who would now "symbolically" protect my adopted seals. Make it 20 seals. Something like this could get traction around the world "Adopt a Canadian baby Seal." We could go out and shoot the seals (WITH a CAMERA) in their habitat and post videos on YouTube showing our "adopted" babies. Weather permitting there could be helicopter rides to go see the seals. I am sure that better minds than mind can come up with alternatives to the seal hunt that would benefit former sealer and start new industries in the region. Besides, my personal feelings about the hunt, I agree with Margartet Wente of the Globe and Mail who writes "The truth is that the hunt is a global embarrasment and nothing short of banning it will change that."

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The eyes of the world will be on Canada for the next several months leading up to the Olympics. What do we want them to see?
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Things Change. Times Change. the Seal Hunt must End. Let me know where to send my cheque.
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Jaime Horwitz MBA

Influenza A H1N1 formerly known as Swine flu not as Bad as Thought

From many accounts in Mexico, the US and around the world, it looks like this new type of Influenza is a lot like regular Influenza. While I agree that authorities should remain vigilant (particularly come Fall), perhaps it's time to get back to the buusiness of promoting travel. Let's keep in mind that worldwide there are some 1,000 confirmed cases, mostly mild, but in Canada alone, according to health officials, regular Influenza causes, on average, 4,000 deaths annually.

Spring is here and Summer is coming. Lots of great events in Canada to promote like Luminato, Montreal's Biennale, Cirque du Soleil's Ovo, Toronto's Indy, Osheaga Festival and more.

Bon Voyage,

Jaime


-- Post From My iPhone

Canada in Style a quiet but elegant affair at the beautiful St. Lawrence Hall in Toronto

I was invited to attend the Canada in Style event organized by the CTC and the Provincial Marketing Organizations earlier this evening at the wonderful St. Lawrence Hall (which curiously in twenty years of living in Toronto I had never seen).
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I only had an hour to be there but it was enough to meet some of the media relations professionals from some of the provinces. The event was an opportunity for media to meet with the provinces and talk about what may be in store for Canadian Tourism this year. I was glad to hear that the Yukon is still looking at continuing to promote the territory in Mexico and may invite Mexican Media again next summer.

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Loved the mini-bison burgers from Manitoba and the oysters from Prince Edward Island. I must say, however, that spoiled by many tourism conferences I left wanting more, more style, more show, something. It was very quiet and subdued, but then again maybe that was the point.

When I received the invitation (from Miguel, Emily and Ann at Siren Communications) I was asked "What does Canadian Style mean to you?" (in fifty words or less). I think there's a contest running. This was my answer, what do you think?
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Enjoying a Cohiba cigar, snifter of Spanish brandy sitting in a Muskoka chair overlooking a lake surrounded by the sounds of silence and friendly conversation.

High Tea by the window at the Fairmont Chateau Lake Louise

Dinner at La Pinsoniere’s restaurant overlooking the St. Lawrence river

Jaime
www.canadaenespanol.ca

Reasons Why Canda Ranks in Top 10

A little Humour with Canada’s New Top Rankings.

It is with interest over the last few months Canada has made the world headlines with “Top 10” positioning. The first and probably the most important for Canadian Tourism is the ranking by Lonely Planet, and most recently the number 2 country brand recognition in the world. This ranking comes from the Country Brand Index by FutureBrand of New York, NY.

The introductory paragraph on the Lonely Planet website, may provide the best laugh and possibly the heart of the Canadian culture, the depth, the passion, the raison d’etre for Canadians. Canada’s image has been captured with the phrase “the handle on a Canadian beer case – big enough to fit your hands, even with mittens on. If you think that’s impressive, consider Canada’s other mondo attributes……” Photo: Ron Taylor, Canada Travel News, Ontario Travel North of Toronto.