Tourism can be a major contributor to economic growth all across Canada . The current state of the tourism industry in Canada has many issues affecting it including an ever increasing travel deficit, decreasing international market share and high taxation and Visa policies.
Canada's travel deficit currently at 14 billion dollars has steadily increased since 2010 as illustrated by Figure 4-3A.
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| Figure 4 - 3A Canada's Travel Deficit Source: http://www.tiac.travel/documents/advocacy/gateway_to_growth_june_2011.pdf |
Canada is the only country among the top 15 tourist destinations that has not had an increase in international arrivals since 2002. This is an indicator that Canada is falling behind as an attractive destination choice. Figure 4-3B lists the top 15 countries tourist arrivals in 2002 and 2010. A low ranking of 125th among popular tourist destinations in regards to taxation and Visa requirements is also a major deterent for International travellers.(TIAC)
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| Figure 4 - 3B: International Tourist Arrivals Source: http://www.tiac.travel/documents/advocacy/gateway_to_growth_june_2011.pdf |
The Tourism Industry in Canada is in decline and needs to focus on the following key areas in order to hopefully return to the top 10 of tourism country destinations: an increase in marketing funding, a more competitive government taxation and visa policy, added investment into tourism products like museums, parks, heritage areas, attractions and improvements in training and skills for tourism employees.
(TIAC)
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| Figure 4 - 3B: Attractions Source: http://www.tiac.travel/documents/advocacy/gateway_to_growth_june_2011.pdf |
Price elasticity is evident in many facets of the Tourism Industry due to the wide amount of substitutes for the Canadian tourism product and a lower percentage of household income due to the downturn of the global economy and looming U.S. economic turmoil. A degree higher than 1 and as high as 2 would be expected in the elasticity of demand of Canadian Tourism products and services.
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