Canadian and World Tourism

Expedia's Flip Flop report. Canadians prefer beach vacations to anything else (not a big surprise here).

2012-05-17T13:51:00.002-05:00

Expedia's 2012 Flip Flop Report is out and here are some interesting highlights:

According to Expedia’s Flip Flop report, a global survey that measured beachgoer behaviours and preferences across five continents, 45 per cent of Canadians say they prefer a beach vacation to all other types of vacations, far ahead of the global average of 33 per cent.

Among other findings:

• The majority of Canadians surveyed said they would prefer to hit the beach for some relaxing downtime – 72 per cent compared to 54 per cent globally

• Canadians aren’t crowding sea sides to go ‘full-Monty” with a mere five per cent of adult surveyed saying they have hit the beach in only their birthday suits (and hopefully a smile!)

Provincial differences also came to light with the global survey:

• Though 45 per cent of Canadians would chose a beach holiday if they could only take one vacation this year, the second choice among regions differed greatly. Quebecers were the least likely of all Canadians to choose a beach vacation (38 per cent), but were the most likely to opt to visit family or relatives (16 per cent) on their holiday, higher than the national average of 9 per cent.

• British Columbians at 18 per cent would prefer to go on a romantic holiday a with a spouse or partner, compared to only 10 per cent nationally.

• Though Canadians overall weren’t likely to shed all for full-body tan, those in British Columbia at eight per cent were slightly above the national average of five per cent to having sunbathed nude.

• When asked what activities they have participated on while on a beach vacation, Albertans it seemed were all about the water. Of Albertans surveyed, 54 per cent have gone snorkeling, compared to the national average of 34 per cent; 26 per cent have gone whale watching (versus 17 per cent national average); 20 per cent have gone sailing or kayaking while another 22 per cent have gone fishing (both higher than the national average of 14 and 13 per cent respectively).

Expedia.ca

What does this mean for domestic tourism? For those destinations with suitable beaches - Grand Bend and Wasage, Ontario and Vancouver and Vancouver Island, British Columbia - an opportunity. For just about anyone else - more challenges (add to that a high loonie and higher duty free exemptions for Canadians and you have a recipe for a larger travel deficit for the country). Logic would indicate that most Canadians travel to beach/sun destinations during the winter, but in recent years we've seen an increase in sun destination marketing to Canadians during the warmer months. I don't have data, but perhaps I can find out more on this from Expedia. For sun destinations this is an opportunity to increase targeted communications to Canadians who are obviously already predisposed to travel to beach destinations.

Bon voyage.

Jaime

"Welcome to the Jungle" a tourism take on the ol' Guns N' Roses tune

2012-05-17T08:19:00.000-05:00

I get sent a lot of press releases and get many requests to publish "guest posts" on this blog. Most requests I ignore, because I don't have much time to work for free. But every now and then I receive something that grabs my imagination and piques my curiosity. This is one of those times. Lesson? You know all the basics. When you sent an email you want people to open, you're subject line must be interesting and original without looking like spam. The subject line from this request simply stated "Welcome to the Jungle." Now, I might have thought it was spam, but spam usually promises money or sexual satisfaction. This one had something to do with a) a Safari in Africa b) a new nightclub opening c) a Guns N' Roses reunion after all or something to do with partying. In any case, I decided to open it and find out. It was an invitation to watch this video from The Star resort in Sidney Australia, which I did. I like it. It's a fun way to promote the resort (which I never heard off - since I've never been to Sydney - "wink, wink The Star"). The spot was produced by original agency/collective/bunch of crazy creatives "The Monkeys." I think the spot works - it makes want to, at the very least, find out more about the resort or - if you're not far from Sydney - plan a visit right away. Iris Kleimann, General Manager of Marketing at the Star says ‘The Star is an entertainment destination, so we believe that our communications must be engaging and entertaining also. This spot achieves this beautifully, as we hoped it would’.

Canada is falling behind in Tourism. But early 2012 shows hopeful signs

2012-04-27T15:58:00.001-05:00

According to the Tourism Industry Association of Canada, Canada is falling behind in tourism rankings, international visits and income:

"Between 2002 and 2010, almost all countries posted international tourist arrivals gains – except Canada. This means that strong brand interest is just not converting into arrivals.

Who wouldn't want to come here? We are blessed with the basics: Unique natural vistas, safe and inviting cities, renowned festivals and attractions… but the basics are not enough in this increasingly competitive sector.

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

Our sector now has to adjust to the "new normal" – A tighter border with the United States and a dollar which will remain roughly at par with the American greenback for the foreseeable future.

Taxation and Visa policies are seen as the biggest barriers to entry. Canada ranks 125th in the world on aviation costs, for example." TIAC.TRAVEL

The domestic visitor has sustained Canadian tourism for several years, but with a high Canadian dollar the temptation to vacation abroad is growing. The government's recent changes to personal exemptions for Canadians returning from the US and overseas don't help either.

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

If you knew what it takes to get a visitor's visa to Canada, you would understand why many travelers stay away. The requirements are frankly ridiculous. Travelers want to visit Canada not move here. Take a look at the official document checklist for Mexican visitors who want to obtain a visa.

Besides the visa issues - we don't seem to be doing a great marketing job (I think Alberta and Quebec are exceptions in this regard). The CTC's Signature Experiences initiative is a good effort but we need to do more. We need bold marketing and then we must deliver when visitors come in order to generate conversational capital in the social media sphere.

And we need tourism champions within all government levels. It is clear that tourism is not a priority at the federal level. While there has been some support over the years, no government has taken tourism seriously enough to establish a Tourism Minsitry at the Federal Level. Not that I want more bureaucrats, but without tourism at the cabinet table, we'll never have a viable national tourism strategy. Canada cannot be just about commodities and technology. Our tourism assets are unique in the world. Our reputation as a friendly country is unparalleled. We need to do a better job of uniting all Canadian tourism stakeholders: from hotel workers to restaurant owners to airline CEOs. The voice of Canadian Tourism must be louder.

But there are signs of improvement. Numbers for international visits in January and February 2012 are very good compared to 2011. Most markets showed improvement. Mexico, up 33% in February, continues a steady recovery since the visa debacle of July 2009. The US showed increases (up 8%) as did most of Europe. Hopefully we'll see steady growth in 2012 - or at the very least no more declines.

High loonie + cuts to CTC + increase cross border allowances for Canadians = tough summer for Canadian Tourism

2012-04-01T17:39:00.001-05:00

Finance Minister, the Hon. Jim Flaherty, tabled the Federal Government's budget 2012 and it's not very good for the 600,000+ Canadians that work in the tourism industry (investments in Quebec notwithstanding - more on that in my next post).

1 - according to the Tourism Industry Association of Canada - the CTC will see a small cut to it's budget this year, but a substantial cut of $14.2 million in 2013/2014. The CTC is underfunded as it is, so this does not bode well for Canada's tourism profile internationally. Without sustained and predictable funding, it is very difficult to plan long term for the benefit of the Canadian Tourism Industry.

2 - The Canadian dollar will continue to hover at parity with the US greenback for the foreseeable future and this is not good news for Canadian Tourism. With so many new destinations for travelers to choose from and weak US and European economies, a high dollar puts a lot of pressure on margins and many Canadian tourism businesses just can't compete on price.

3 - The Federal Budget raises duty free limits for cross-border travelers in effect giving the US tourism industry a big gift. Canadians returning from abroad can now spend $200 in a 24 hour period and $800 on a 48 hour trip without paying taxes on their purchases. Put that together with a high loonie and American cross-border marketing and you have a great incentive for Canadians to spend their money across the border, money they will not spend at Canadian tourism destinations.

What to do? Canadian tourism must continue to focus on differentiation and creative marketing. I anticipate a barrage of marketing messages targeting Canadians to encourage them to travel within Canada this year.

Comments? Advice? Rants?