2. Canada’s Travel and Tourism Industry
The NRTT represents the full value chain of Canada's $82 billion travel and tourism sector
TRAVELERS
Outside Goods and Services
Local Goods and Services
Employment + Sales + Taxes + Wages
Air
Cruise Lines
Train
Auto
Leisure
Food
Retail
Resorts
Conventions
Lodging
Agriculture
Pensions
Education
Touring
Business
Outdoor 2

3. Committed to Travel Economy Growth
“Canada’s spectacular beauty attracts visitors from across the globe to every region of our country. These visitors create jobs and sustain local economies. Our Government will continue to work with industry partners to promote Canada as a top destination for tourism.”
Speech from the Throne, 2nd Session 41st Parliament, October 17 , 2013 3

4. Shared Objectives
Grow export revenues and diversity the Canadian economy
Drive the broader prosperity agenda creating private sector investment opportunities in Canada & jobs in every region of the country

5. Canada Europe Free Trade Agreement
Travel between countries is a precursor to trade and investment.
Canada is engaged in Free trade agreements with over 60 countries, and Air Transport Agreements with 65 countries.
Canada will not enjoy the full economic benefits of these agreements until public policy impediments concerning aviation cost structure are addressed. 5

6. An Unparalleled Economic Opportunity
Tourism is the world’s 4th fastest growing industry
1 billion international travellers $1 trillion in revenues
4% growth globally per year
Tourism’s footprint in Canada alone:
$84.8 B in economic activity
$17.3 B in export revenue (#1 service export sector)
$9.6 B in federal government revenue
614,600 jobs
Canada is performing well domestically – but falling behind internationally
continued barrier deductions will improve Canada’s competitive advantage

7. Visitor Mix Key To Growth
Incremental Growth
Additional Visitors
Average Room Rate
Average Room Nights Generated p.p.
Total Add’l Room Nights Generated
Additional Hotel Revenue (Canada) 4%
652,000
$129.00*
3.5**
2,282,000
$294M
4% incremental growth would drive over $3B in valuations for the accommodation sector alone.
*2011 Average (rounded). Source: Hotels Association of Canada. **Source: Estimates from TIAC and HLT Advisory 7

8. International Visitation - A Long Climb Back
International Tourist Arrivals - (Top 20 Countries – in millions)
Rank
2002
2011
2012 1
France
77.0
France (2010)
77.1
83.0 2
Spain
52.3
U.S.
62.3
U.S. (2011) 3
43.6
China
57.6
57.7 4
Italy
39.8
56.7 5
36.8
46.1
46.4 6
U.K.
24.2
Turkey
29.3
35.7 7
Canada
20.1
U.K. (2010)
28.3
Germany
30.4 8
Mexico
19.7
28.4 9
Austria
18.6
Malaysia
24.7
Russian Fed.
25.7 10
18.0
23.0
25.0 11
Hong Kong
16.6
22.7 12
Hungary
15.9
23.8 13
Greece
14.2
22.3
23.1 14
Poland
14.0
Ukraine
21.4 15
13.3
Thailand
19.1
22.4 16
12.8
Saudi Arabia
17.3
16.3 17
Portugal
11.6
16.4
15.5 18
10.9
16.0
14.8 19
10.5
13.4
13.7 20
Netherlands
9.6
Macau
12.9
Macao (China)
13.6
In 2012, Canada improved to 16th in international arrivals (from 18th)
Despite this modest improvement, we’re still short of 2002 levels by about 3.8 million visitors
Source: UN World Tourism Organization

9. Competitiveness Challenges : Policy Measures
A competitively funded marketing effort that drives alignment and can balance key and emerging markets – including US. A modern aviation and visitor facilitation structure enabling the “mobility economy”. Addressing infrastructure, programming and labour market issues.
MARKETING
ACCESS
PRODUCT & PEOPLE

10. Competitive Challenge Marketing : Investment & Alignment
Major competitors have increased international tourism marketing investments – i.e. Brand USA into Canada
Timing is right to re-evaluate approach to the US market

11. Connecting America: A Partnership For Prosperity
Connecting America is an industry sponsored proposal for a new three-year coordinated, targeted and measurable tourism marketing co-investment initiative to re-energize the US consumer, utilizing existing air and ground access:
Proposed 3 year federal marketing investment of $35M/yr matched 1:1 by Provincial, Local and Private sector investment
Generating $210M in federal tax revenue alone
Providing or sustaining over 6,000 direct jobs 11

12. Connecting America – Visitor Impact

13. Connecting America - Economic Impact
CANADA’S TOURISM POTENTIAL
YEAR 1
YEAR 2
YEAR 3
TOTAL
Converted Travellers (,000s)
440
850
1,360
2,650
Tourism Receipts ($M)
250
500
810
1,560
Federal Government Revenue ($M) 30 70
110
210
Jobs Supported
1,900
3,700
6,000
---

14. Conservatives Agree
“iii) We support the reduction or elimination of federal government fees, levies, taxes and rents, hidden and otherwise, associated with Canada’s national transportation system”
Transportation Principles, Policy Declaration of Conservative Party of Canada 2011 14

15. Competitiveness Challenge: Aviation
Canada is a “fly-to” destination, but our cost structure is a barrier to success
Canada is ranked 5th with regards to access, but 136th based on aviation cost structure*
Increasing competition requires:
Aviation cost structure (Transport & Finance)
Passenger Facilitation (CIC & CBSA)
Air Access Agreements (Transport & Trade)
*Source: World Economic Forum Travel and Tourism Competitiveness Report

16. Competitive Challenge Facilitation: Visa and Border Issues
Significant progress made - more to do!
Current Recommendations:
Reducing red tape using technology (ETA) – leading to Visa Waiver for markets like Mexico & Brazil
Optimizing Existing Security Infrastructure (Beyond the Borders)
Reinvest in Visa Processing

17. Conservatives Agree
“vii) refrain from using the term ‘resident’ or ‘residence’ in temporary, student and visitor visas to ensure greater certainty for those temporarily visiting Canada.``
Entry Applications, Permits and Landing fees. Policy Declaration of Conservative Party of Canada 2011 17

18. Recommendations to Achieve 4% Annual Growth
Partner with the travel and tourism industry in Connecting America, an unprecedented strategically-aligned marketing initiative to drive US leisure demand for tourism vacation product across Canada
Reduce the government-imposed aviation cost burden in order to maximize economic benefits for Canadians of international Open Skies and Free Trade agreements.
Modernize our visitor visa system by differentiating between travellers and residents
Increase on line processing of traveller visa applications from key source markets;
Build on our information-sharing and security partnership with the US to establish a reciprocal trusted-traveller visa waiver system for travellers from key markets;
Grant visa waiver status for Brazil and Mexico leisure and business travellers. 18