A report released 2 June 2008 by the Tourism Industry Association of Canada (TIAC) elicited the comment from its President and CEO Randy Williams, “Canada’s tourism sector is on the brink of a crisis today, and we need urgent action from governments at all levels to address some longstanding structural burdens on our industry.” Acknowledging that there is little central or provincial governments can do to mitigate headline-grabbing events such as 9/11 or the record high fuel prices, Williams adds that they have distracted attention from the underlying structural issues that have led to a decline in Canada’s ability to compete successfully in a global market.

The tourism sector in Canada provides 1.6 million jobs but the numbers of tourists have declined for 45 months in a row and the gaming industry is feeling the effects of fewer visitors from the US. The cost of fuel, economic troubles, the strength of the Canadian dollar and new passport restrictions on border crossings are taking their toll on those US visitors who used to drive across the border for some gambling entertainment.

Great Canadian Gaming Corporation recorded a 4% improvement in revenues for the second quarter of 2008. Ross J. McLeod, Great Canadian’s Chairman and CEO, was happy to report: “Great Canadian continued to record year-over-year revenue and EBITDA growth in the second quarter. Visitation levels, gaming volumes, and other market indicators demonstrate that the gaming jurisdictions in which we operate remain healthy and robust.”

Not all Canadian casinos are in the same position. In May the fall in US visitor numbers caused the offer of a financial compensation package for full-time employees taking voluntary redundancy at two Niagara casinos in Canada. This followed the announcement of a freeze on wages for casino staff. The casino operator, the Ontario Lottery and Gaming Corporation, was seeking to employ more part-time staff and fewer full-time.

As The Report on Canada’s Tourism Competitiveness concludes: “The profile of Canada’s traditional visitor market is evolving. The drive-up traveller who originates from one of the adjacent US border states is slowly being replaced by a mid to longer haul U.S. visitor and the curious, less-travelled member of a nascent middle-class in emerging market economies such as Brazil, Mexico, India or China." The report also points out that with the market evolving it is up to the managers and executives who monitor international trends in the tourism, travel and retail marketplace to put forward service offerings that meet the new demand.
(E-08.18.08)

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