Gateway to Growth:

Our Global Competitiveness Requires a 
New Roadmap (M.A.P.)
Stimulating Growth ̶ Lowering Taxes

• Travel and Tourism can drive economic growth and diversity in every province
and region across the country.
• One of the fastest growing sectors in the global economy – while the global pie
is getting bigger, Canada’s share is shrinking.
• The Canada brand is #1* – but we are 15th in foreign arrivals. Strong brand
interest not converting into arrivals.
• Taxation and Visa policies are the biggest barriers to entry. (Canada ranked
125th on aviation costs.)
• Our travel deficit is tracking to hit $13 billion in 2010.
* Source: FutureBrand Index

Like all other export consumers, the burgeoning international travel class has
choice…and are increasingly choosing not to pay high Canadian taxes or deal with
red tape to come here.

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International Arrivals in Decline

International Tourist Arrivals

The UN’s World Tourism Organization (Top 15 Countries – in millions)
numbers on international arrivals are Rank 2002 2009
troubling: Between 2002 and 2009,
1 France 77.0 France 74.2
almost all countries posted
international tourist arrivals gains – 2 Spain 51.7 U.S. 54.9
except Canada. 3 U.S. 41.9 Spain 52.2
4 Italy 39.8 China 50.9
5 China 36.8 Italy 43.2
If this was simply an issue of the 6 U.K. 24.2 U.K. 28.0
Canadian dollar, other countries whose 7 Canada 20.1 Turkey 25.5
currencies have appreciated against 8 Mexico 19.7 Germany 24.2
the US dollar should see similar
9 Austria 18.6 Malaysia 23.6
impacts.
10 Germany 18.0 Mexico 21.5
11 Hong Kong 16.6 Austria 21.4
12 Hungary 15.9 Ukraine 20.7
13 Greece 14.2 Russia 19.4
14 Poland 14.0 Hong Kong 16.9
15 Malaysia 13.3 Canada 15.8

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Getting Back Into the Top 10

• Today, we represent a $70 billion sector, 649,900 direct jobs.

• Total Tourism Spending by Non-Resident Travelers to Canada - $14.382 Billion.
• Last year, foreign visitors accounted for approximately 118 Million person
nights in Canada. This is the equivalent of adding almost 325,000 additional
“hyper consumers” in the Canadian economy, roughly the population of
Windsor, ON.
• If we were back in the top 10 for foreign arrivals, Canada would have:
• 5.7 million more visitors
• $5.2 billion additional dollars spent in the Canadian economy
• 46,900 more jobs
• $720 million more annually for the federal government
• $797 million more annually for provincial and territorial governments
• Canadians will have to pay more taxes to offset the lack of revenue from
foreign visitors.

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Canada’s Burgeoning International Travel Deficit

• Like many developed nations, Canada shows a deficit between the amount of money
spent by its citizens traveling abroad and the amount spent by those international
visitors arriving in their country.
• However, the continued growth of Canada’s travel deficit is a prime indicator of how
Canada is falling behind other countries in terms of competitiveness.

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Our Competitive Advantage Requires a Renewed “M.A.P.”

“M” for Marketing

“A” for Access

“P” for Product

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“M” for Marketing
National Tourism
Organization Funding
Top 10 Countries • ($US millions)

1 United States* 200

• Competitive and sustainable 2 Mexico 170

funding for the Canadian Tourism 3 Cyprus 142

Commission 4 United Kingdom 139

5 Greece 138

6 Romania 129

7 Spain 121

8 Malaysia 114

9 France 113

10 Ireland 112

20 Canada 84

Source: UNWTO
*Announced budget of US Corporation for Travel Promotion
Based on most recent data available from 62 countries

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“A” for Access
• More competitive tax and visa policy
• Taxes & Fees: Airport rents, fuel taxes and security fees have rendered us
125th in the world for aviation cost structure based on the World Economic
Forum. Canada is a “Fly-to” destination – and our cost structure is a
barrier to success.
• Visa: need an effective visa system to help facilitate access for key
emerging markets, including Brazil, Russia, India, China and Mexico. North
America needs a EU style perimeter approach that would allow ease of
travel.

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“P” for Product

• Investments in tourism products

owned by federal and provincial
governments (parks, museums and
heritage areas), and renewal of
support for attractions and festivals
creates urgencies for travellers to
choose Canada.
• An adequate supply of skilled
labour providing quality service and
hospitality to help create
memorable visitor experiences.

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Destination 2017

We are blessed with the basics.

Overcoming these structural challenges, will reshape travel

patterns and put us back in the “Top 10” by 2017.
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