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The Ups and Downs of Tourism (in Business Vancouver Island)

August 10, 2009

Challenges seem to be mounting for the tourism industry. The most obvious has been the significant downturn in the US economy, our largest tourism customer, and the continued concerns about documentation requirements at the border.

Now the federal government has thrown another loop at the industry, though perhaps as an unintended consequence of other policy areas. Recently, the Canadian government announced that travellers from Mexico would require a visa for entry into the country, including seasonal workers and students. The policy is meant to stem the increase of refugee claimants from Mexico. While that may be a legitimate immigration concern, the decision was made without consultation from other industries that will be negatively impacted and will be implemented immediately.

Mexico brought 266,000 visitors to Canada in 2008. That’s a 49% increase since 2005. While those numbers are no where near our US visitors and only about one third of the number of visitors from the United Kingdom, they are a market that has being growing consistently while the other two are shrinking. This policy is apt to cut that growth at the knees.

Still China is the country that holds the greatest untapped opportunity for Canada, if only our federal government would attain Approved Destination Status (ADS). ADS is a bilateral tourism arrangement between the Chinese Government and a foreign destination. Countries with ADS status are permitted by China to host Chinese tourists undertaking leisure travel in groups. Canada was at the front of the pack in negotiations in 1999, but talks broke down and since then more than 130 countries have achieved ADS and are enjoying year over year increases from that market.


But there’s good news too. Vancouver and Victoria are faring better than other Canadian cities in this down market with higher room occupancy rates. And we are headed for our busiest year ever in the cruise ship sector with 215 scheduled stops in Victoria.  In mid-July Canada signed an Open Skies Agreement with Korea, enabling air carriers from either country to operate scheduled passenger services as frequently as desired. This agreement is one of several announced in recent months that will enable capacity development on key routes.

Through the ups and downs in the past, tourism has proven to be a resilient industry and we are sure it will come through the current challenges stronger than ever. Our business communities certainly appreciate their tourism operators and all they contribute to our Island economy. We wish them the best of business this season and will do our part to promote our Island to travelling family, friends and colleagues.





Articles - 2010

Borrowing for the Bridge Our Best Option (in September Business Examiner) (August 30, 2010)
ADS is Positive for BC Tourism (in Business Vancouver Island) (August 11, 2010)
Regional Issues Require Regional Decision Making (in Business Examiner) (July 28, 2010)
Task Force Only a First Step (in Business Vancouver Island) (July 07, 2010)
Paying for the Bridge (in Business Examiner) (June 30, 2010)
Shoulder to Shoulder with Tourism (in Business Vancouver Island) (June 17, 2010)
What is the Cost of Not Building the Marina? (in Business Examiner) (June 01, 2010)
Business Vote is Complicated (in Business Vancouver Island) (May 17, 2010)
Keep an Eye on Tax Spending (in Business Vancouver Island) (April 08, 2010)
Calling for Police Amalgamation (in Business Examiner) (March 24, 2010)
Health, Police Connected (in Business Vancouver Island) (March 11, 2010)
Tourism Benefits of the Games Needing Our Support (in Business Examiner) (March 01, 2010)
Listen to the Tax Canary (in Business Vancovuer Island) (February 15, 2010)
Education and Sewage (in Times Colonist and Blackpress, Letters) (January 29, 2010)
Bay Street Bridge Closure a Wake Up Call (in Business Examiner) (January 27, 2010)
Improving Province's Productivity (in Business Vancouver Island) (January 15, 2010)
Stable Funding for Tourism an Urgent Need (in Business Examiner) (January 04, 2010)


Articles - 2009


The Greater Victoria Chamber of Commerce
#100 – 852 Fort St. Victoria, BC V8W 1H8
Phone: 250-383-7191
Fax: 250-385-3552

chamber@gvcc.org

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