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American Tourists No Longer Canada’s Bread and Butter

Submitted by Kim on Sunday, 27 January 200812 Comments

Ten years ago the American traveler migrated north in the summer in droves. In the past they had always come north and the icing on the cake for 10 or so years was that they got almost $1.50 Canadian for their U.S. greenback.

Last fall the Tourism Industry Association of Canada (TIAC) mentioned factors affecting Americans’ travel choices

1) Strong Canadian dollar

2) Slowing U.S. economy

3) High gas prices

4) Confusion over documentation requirements

5) Lack of awareness of Canada as a destination for Americans who could travel.

This has thrown water over Canada’s “Field of Dreams” idea of tourism: “It-is-here-so-they-will-come.” As tourists coming to this country is big business and a piston of economic growth the attitude toward this sector of the economy was treated with a lackluster approach: Attend a few shows in Europe and the U.S. show a few slides and parade around some scarlet-jacketed Mounties.

The report goes on to say that Canada is viewed by all as a friendly, courteous, traditional and safe place to visit. But it does not inspire awe and sense of wonderment of, say, Australia or France.

Americans living close to the border know Canadian tourism and lifestyle attractions. But even these U.S. citizens are distracted by the new regulations like the WHTI (Western Hemisphere Travel Initiative which requires not only Canadians to have special documentation but also American visitors. And these regulations have not been made clear to the American people yet. “So,” many might ask, “why should we go to Manitoba when Michigan and North Dakota have similar natural attractions?” Or, “Let’s just go to Mt. Rushmore.”

Another distressing bit of news is that much of Canada’s winter product including skiing, snowmobiling and snowboarding is of no interest to over 40% of would-be American tourists.

So, is Canada in trouble in this area? No, it is not. As much as the American buck is sorely missed the absence of this currency did not create the large vacuum for which the soothsayers of doom had originally braced. When the U.S. dollar was high Canadians began traveling their own country and now are taking the pace of Americans in the resorts and attractions. In addition, with a high Euro and Pound, visitors from across the Atlantic are increasing.

Where now? Well, I’ll give you a big hint: The rise of the Chinese middle class.

12 Comments »

foXnoMad » Travel Blog Carnival Week 5 said:

[...] American Tourists No Longer Canada’s Bread and Butter – The falling dollar, higher gas prices, and new documentation requirements are causing a drop in American tourists to Canada. Despite the good image Canada has with Americans, it simply isn’t enough to entice them to visit in high numbers. The report goes on to say that Canada is viewed by all as a friendly, courteous, traditional and safe place to visit. But it does not inspire awe and sense of wonderment of, say, Australia or France. [...]

- 2 February 2008 at 9:00 am

Jen said:

It’s interesting that the tourism drop didn’t happen.

You also mention that American’s aren’t interested in Winter sports, why is that?

- 4 February 2008 at 8:56 am

kim said:

Hi Jen,

Thanks for your comment.

1) Since the blow that 9/11 dealt travel to the country Canadian operators who were dependent on American tourists had to change their focus. Because 2002 was a disastrous year and this happened when the U.S. dollar was still almost $1.40 CDN. So when the full crunch of the currency equalization was realized the industry had been already courting other markets.

2) I based American interest on winter sports on statistics of the Winter Olympics. Of course the northern U.S. is big on winter sports but the numbers show that a vast majority is not.

- 4 February 2008 at 9:21 am

Jim Mirkalami said:

I have been visiting this site a lot lately, so i thought it is a good idea to show my appreciation with a comment.

Thanks,
Jim Mirkalami

- 7 February 2008 at 11:33 pm

Robin said:

With the Canadian dollar at par with the American dollar, that would mean a lot more Canadians going south. Of course we will require documentations but also American visitors will too.

- 17 February 2008 at 8:59 pm

matt said:

It’s funny that getting in and out of canada requires more legal documentation than getting in and out of mexico…should be the other way around.

- 27 February 2008 at 12:03 pm

kim said:

Yeah,

The EU is cutting down restrictions and we’re putting them up.

- 27 February 2008 at 12:13 pm

lando tremblant said:

it depends where your located too. i could see tourism from the states dropping in the maritimes and the prairies. If your close to the border and a major city, tourism is going to remain the same. Its still easier to get into canada from abroad than most EU countries. there are more external barriers for africans to enter the EU than there are in North America.

- 9 May 2008 at 1:25 pm

High Gas Prices said: