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April 15, 2003
COTA BOARD MEMBERS ANNOUNCED
The Council of Tourism Associations of British Columbia recently appointed its slate of board members for 2003. Don Monsour, president of Hospitality Associates, continues as president of COTA. Mr. Monsour is a founding member of COTA and brings more than 40 years of management experience in the hospitality industry to the role. Don holds the Human Resources Portfolio for COTA. New to the board is Jim Storie, president of the Vancouver Trolley Company. Mr. Storie will lead COTA’s Ground Transportation Portfolio. Returning board members include:
Kevin Walker, owner and general manager of the Oak Bay Beach Hotel & Marine Resort, Victoria. Mr. Walker is COTA’s liaison member with Tourism British Columbia’s Board of Directors and is COTA’s immediate Past President.
Eddie Wood, general manager of Mount Seymour Ski Resort, North Vancouver. Mr. Wood is First Vice President of COTA and holds the Aboriginal portfolio.
Michael Campbell, owner/operator of the Best Western Inn at Penticton. Mr. Campbell is chair of the Sponsorship and Membership Portfolio and COTA’s Treasurer.
Allan Baydala, president of West Coast Air, Vancouver. Mr Baydala holds the Air Transportation Portfolio.
David Littlejohn, owner/operator of the Living Forest Oceanside Campground, south of Nanaimo. Mr. Littlejohn holds COTA’s Marine Transportation Portfolio.
Petrus Rykes, owner/operator of Eagle’s Nest Resort, Anahim Lake. Mr. Rykes is among two board members overseeing the Land and Environment Portfolio.
Deane Strongitharm, consultant, CitySpaces Consulting Ltd., Victoria. Mr. Strongitharm rounds out the lead on the Land and Environment Portfolio.
April 15, 2003
SARS UPDATE
The World Health Organization (WHO) has not recommended travel restrictions to Canada. Canada continues to be a safe travel destination. While there have been cases of Severe Acute Respiratory Syndrome (SARS), the Canadian government (through Health Canada) is taking responsible steps to ensure public health. There is no evidence to date that the illness spreads through casual contact, or through the air. The risks to travellers of contracting this illness are minimal. Travellers need not take any extraordinary health precautions while visiting Canada. Visitors should observe normal good health practices, such as frequent hand washing.
Health Canada Quarantine Officers currently on the ground at Vancouver, Pearson (Toronto) and Dorval (Montreal) International Airports: are meeting direct flights from Hong Kong, Singapore and Beijing and actively passing out Health Alert Notices to incoming passengers. These notices ask passengers to see a physician if they begin to have any symptoms related to SARS. For further information on SARS, visit www.cotabc.com. Health Canada has also established a toll-free hotline at 1-800-454-8302.
April 15, 2003
TOURISM INDUSTRY RESPONDS TO IRAQ
The Canadian Tourism Commission’s Recovery Program to deal with the impact of the IRAQ war will include a review of every program in every market to identify funds that can be diverted and retargeted when the timing is appropriate, principally to the U.S. and Canadian markets. CTC Road Show meetings, planned for mid-April through early-May, will be one of the ways industry can see and comment on the program as it evolves. The CTC is undertaking consumer research beginning with the U.S. market and posting results and intelligence gathered from this research on the Canadian Tourism Exchange (CTX) website when it becomes available
www.canadatourism.com
.
April 15, 2003
AIR CANADA: BUSINESS AS USUAL?
It is anyone’s guess right now what the end result of Air Canada’s recent spiral into bankruptcy protection will mean for B.C.’s tourism industry. But we can bet that one very likely outcome will be reduced service and capacity on routes into and around the province. Regional airports are already struggling to find ways to expand seat capacity by striking new deals with carriers and working with AC’s competitors to take up some of the slack created when the national carrier pulls back service.
With Air Canada in crisis and the entire airline industry taking a one-two punch from SARS and the war in Iraq, the BC Air Industry Monitoring Consortium (BC AIM) believes the time has come for the federal government to open up Canada’s airline industry to more foreign investment and reduce fees and taxes on consumers and air carriers.
BC AIM believes that Canada’s restrictive laws for financing by foreign investors remain an impediment for Air Canada to regain its financial footing. By limiting foreign investment in domestic air service products to 25 per cent, the Canadian government is limiting the ability of all Canadian airlines to attract investment into this country. The consortium is calling on the federal government to immediately change the regulations to allow foreign companies to invest up to 100 per cent in domestic air service products, as long as the airline company remains based in Canada and employs Canadian staff. The group also recommends that the foreign investment limit on international air service products be increased to 49 per cent from the current 25 per cent.
The group cites ever-increasing government taxes, rents and fees as a huge factor in discouraging air travel in Canada. BC AIM is calling for the immediate elimination of the $14 Air Travellers Security Charge, arguing aviation security must be recognized as a national security cost and not downloaded to air travellers. In addition, BC AIM recommends the elimination of the special federal excise tax on aviation fuel and a reduction in rents charged to airports. Rents collected should be re-invested fully into supporting regional and local airports and air service.
The Council of Tourism Associations (COTA) and Tourism BC are lead organizations for a consortium of tourism organizations, including Tourism Vancouver, Tourism Victoria, Tourism Whistler, BC and Yukon Hotels Association, BC Restaurants and Foodservices Association, the Vancouver Airport Authority and the BC Chamber of Commerce. BC AIM was brought together in August of 2000, over the merger of Air Canada and Canadian Airlines, and continues to consolidate the issues and policy positions of the B.C. tourism industry regarding the future of air services in the province.
April 15, 2003
US REACTION TO CANADA'S POSITION ON THE WAR IN IRAQ
An Ipsos-Reid poll conducted on behalf of the Canadian Tourism Commission shows that for the vast majority of Americans, their outlook on travel to Canada has not been impacted by Canada's position on the war in Iraq. Approximately 63 per cent of Americans who were aware of Canada's position on the war stated that it had no impact on their likelihood to travel to Canada in the next 6 to 12 months. A further 30 per cent indicated they would be less likely to travel to Canada.
The poll measured the U.S. public's reaction to Canada's position on the war in Iraq. The questions were asked as part of an Ipsos-Reid US Omnibus conducted in the between March 28 and March 30, 2003. Highlights are:
Americans who are aware of Canada's position on the war in Iraq
Almost two-thirds (63%) of Americans surveyed were aware of Canada's position on the war in Iraq;
Of those Americans, 63% indicated this decision has had no impact on their likelihood to visit Canada in the next 6 to 12 months.
Of this group, 30% said they were less likely to travel to Canada as a result.
Opinions varied by region, with the Northeast region (73%) showing the highest level of no impact responses and the South region (56%) the lowest.
Past travellers to Canada
Almost half (45%) of Americans surveyed had been to Canada previously.
The majority (68%) of past travellers to Canada were aware of Canada's position on the war in Iraq.
Of those Americans (past travellers and aware of Canada's position), 64% stated the war had no impact. A further 27% said that they were less likely to visit Canada as a result.
The results illustrate some negative reaction to Canada's war position, although overall for the vast majority of respondents Canada's position had no impact.
April 15, 2003
TOURISM BC BOARD MEMBERS APPOINTED
Seven people elected by the Tourism British Columbia board of directors, as nominated by the tourism industry, have been appointed to Tourism British Columbia’s 15-member board for two-year terms. Effective immediately, the new board members are:
Peter Armstrong, president and CEO of the Great Canadian Railtour Company Limited, past chair of Tourism Vancouver and a board member of the World Travel and Tourism Council.
Frank Bourree, certified management consultant and partner in charge of tourism consulting with Grant Thornton LLP Chartered Accountants and Management Consultants. He is active with tourism studies and development projects throughout British Columbia and Canada and has served on several tourism agency boards.
Kelly Glazer, director of sales and marketing for the Ramada Hotel Downtown in Prince George, she has also served as president of the Northern British Columbia Tourism Association and as a director of the Council of Tourism Associations of British Columbia.
Patrick Kelley, regional vice-president of Fairmont Hotels and Resorts, general manager of the Fairmont Hotel Vancouver, and a board member of the Vancouver Board of Trade.
April Moi, executive director of the Northern Rockies Alaska Highway Tourism Association in Fort St. John, which is responsible for coordinating and promoting visitor activity within northeastern British Columbia. A past visitor information centre manager, she is also experienced in festival and event co-ordination.
Sue Morhun, manager of community and heritage services for the Township of Langley, she has promoted the history of British Columbia for more than 25 years and has received several awards for her leadership in heritage preservation and museology.
Nick Worhaug, vice-president, Western Canada for the Hotel Employees and Restaurant Employees International Union and vice-president of the British Columbia Federation of Labour. He is also past president of the hotel, restaurant and culinary employees’ and bartenders’ union Local 40.
The eight other members who are in mid-term of their appointments are Michael Duggan, Beth Campbell, Stephen Smith, Kevin Walker, John Korenic, Charles McDiarmid, Stuart McLaughlin and Allen Tozer. Tourism British Columbia board appointments are staggered so that all the members’ terms do not expire in any given year.
April 3, 2003
AMERICANS STICKING TO TRAVEL PLANS
A Fodor’s travel survey suggests Americans will continue to travel, despite the Iraq war. The March survey of 896 people saw 76 per cent say they will continue with their travel plans. So far, Americans continue to filter across the border to British Columbia. Year end numbers show 3.8 per cent more Americans visited in 2002 than in 2001 — a better showing than Canada overall which posted a 4.6 per cent drop over the same period. Based on early accounts, Tourism BC is forecasting visitations from North America will increase 2 per cent in 2003 to 21.4 million overnight visitors who will hopefully spend $8 billion in the province.
April 3, 2003
AIRLINES AND TOURISM HOPING TO BRAVE LATEST STORM IN IRAQ
As Operation Iraqi Freedom pushes closer to Baghdad, tourism executives continue to fear the ramifications of a long drawn out siege of Saddam Hussein’s capital. Earlier in March, the Air Transport Association released a report citing that even a quick war would cause losses to the airline industry of $10.7 billion, and 2,200 daily flights would be cut, as would 70,000 additional jobs. In the accompanying press release, ATA President James May said “the economic risks go far beyond the tourism industry.” According to the report the tourism industry could be facing four times as many layoffs, a total of 280,000 jobs. However, experts agree airlines were already on borrowed time, suffering from high government rents, taxes, and levies. On Tuesday Air Canada filed for bankruptcy protection in an Ontario court to buy itself time to restructure its finances. The beleaguered national carrier already carrying a $12.9 billion dollar debt was said to be losing $3.9 million a day even before the first Marine set foot in Iraq. Union negotiations have so far yielded 2,300 out of the planned 3,600 job cuts Air Canada is pushing for to compensate.
Past experience has consolidated industry’s resolve to see tourism through this latest conflict. After September 11, 2001, British Columbia’s tourism industry lost ground for the first time in a decade. Now, the tourism industry is digging in hoping to hold the industry’s recovery on track. An Iraq War Task Force has been assembled to determine how best to respond to the fall-out from the war in Iraq. Tourism British Columbia, Tourism Vancouver, the Tourism Industry Association of Canada and Canadian Tourism Commission (CTC) are among 23 members collecting and distributing consumer information on the viability of key tourism markets. The CTC is also squeezing its 2003 budget in hopes of re-focusing program funds on better performing North American markets.
April 3, 2003
HEARTLAND TOURISM ADMINISTERED VITAL CARDIAC CARE
Regional marketing associations have been given a vital cash transfusion to enhance tourism in British Columbia “heartland” communities. Minister of Competition, Science and Enterprise Rick Thorpe announced that government is providing $500,000 for seven tourism associations to develop and market products, facilities and services. Each of the six tourism regions will receive $75,000. The Aboriginal Tourism Association of British Columbia will receive $50,000 for projects benefiting First Nations’ communities pursuing tourism opportunities. Private sector players in each region are being challenged to match the new funds. COTA President Don Monsour says he hopes the program will send tourists home to rave about their British Columbia getaway. The term “heartland” has been popular in the provincial government lately after the Premier’s Progress Board resurrected the phrase in its Report of the Project 250, which focuses on tourism as a means of propping up sagging local resource-based economies.
April 3, 2003
2003 TOURISM AMBASSADORS TAKE CENTER STAGE
It was standing room only in Victoria as over a hundred tourism representatives crowded into the Hotel Grand Pacific on March 24, 2003, to witness the coronation of the 2003 Tourism Ambassadors. From airline pilots, chefs and hotel managers to wait staff and taxi drivers, the Ambassador Awards were designed to acknowledge the faces in each of the six tourism regions that make “high standards of service and workplace leadership their bottom line.” COTA President Don Monsour and Minister of Competition, Science and Enterprise Rick Thorpe presented the awards. The 2003 winners by tourism region are:
THOMPSON OKANAGAN TOURISM REGION - Nicole Fransen, Front Desk Agent, Days Inn Hotel
VANCOUVER COAST & MOUNTAINS TOURISM REGION -Bill Sanford, Manager, Cannery Seafood Restaurant
NORTHERN BRITISH COLUMBIA TOURISM REGION -Marilyn Howard, Manager Visitor Services, Tourism Dawson Creek
VANCOUVER ISLAND VICTORIA, THE GULF ISLANDS TOURISM REGION - Scott Wedekind, Chef Concierge, Hotel Grand Pacific
BC ROCKIES TOURISM REGION - Lee Malleau, Economic Development Officer, Town of Golden
CARIBOO CHILCOTIN COAST TOURISM REGION - Carol Clarke, Manager, Tweedsmuir Lodge
Government proclaimed March 24th, 2003, as Tourism Ambassador Day in British Columbia to honour the 266,000 tourism-related employees working in the province. Minister Thorpe hosted an awards luncheon for the six Tourism Ambassadors in Victoria with House Speaker Claude Richmond. Tourism executives were in Victoria to meet with government as part of COTA’s Raising the Volume 2003: Tourism Day in the Legislature. View the news release at www.cotabc.com
April 3, 2003
CONSIDER THIS…
2003 Tourism Outlook
The tourism industry will generate $9.7 billion in revenue – North Americans will account for $8 billion of this total.
Overnight visitations are forecast to increase 2.1% to 23 million.
Specific markets that will see the most growth in 2003 are China (10%), Mexico (5%), South Korea (5%), U.K. (5%) and Australia & New Zealand (4.7%).
In 2003, North America is expected to account for 93.2% of overnight visitor volume while overseas markets will account for 16.8% of overnight visitor revenue.
Tourism Indicators
Total international overnight customs entries are up 1.4% over 2000 and 2% over 2001.
Annual room revenue was $1.5 billion, up 2.5% in 2002 (based on December 2002 increase of 6.3%.)
Vancouver International Airport passenger volume closed out in 2002 at 14.9 million – 3.9% decrease over 2001.
BC Rockies and Thompson Okanagan regions showed largest room revenue increases, 10.9% ($87,550) and 9.1% ($169,404) respectively.
Smithers posted the highest occupancy rate increase in 2002, while Whistler finished the year with the largest average daily room rate ($200).
For the latest tourism stats and figures visit
www.tourism.bc.ca
.
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