1. Forward: Building a National Tourism Strategy

Tourism makes a valuable contribution to the economic, social and environmental well-being of Canadians across the country. The tourism sector is unique in its economic and cultural significance contributing to every region's economy while enabling Canadians to explore their heritage and celebrate their culture as they travel this vast country. Tourism's impact goes beyond creating jobs and providing foreign exchange and revenue. The many international visitors coming to Canada, whether to visit icon attractions, study, or attend a convention, strengthen Canada's nation brand and international profile.

With revenues of approximately $61.4 billion in 2005, generating over $25.6 billion of value added (2.01 percent of GDP) to the Canadian economy, the significance of this industry is often misunderstood or underestimated (agriculture, forestry, fishing and hunting constitute 2.2 percent of GDP in 1997 constant dollars). Tourism is an industry of industries that generates revenue in a number of essential businesses in the Canadian economy. Typically tourism represents about 95 percent of airplane passengers, 92 percent of train users, 90 percent of guests in hotels and other accommodations, 67 percent of vehicle rentals, 24 percent of recreation and entertainment revenue and 20 percent of food and beverage sales. However, the positive economic spillovers flow far beyond these industries. For example, a decision to locate a firm in Canada, form a joint venture, procure Canadian goods and services, or the decision to emigrate can all be precipitated by positive impressions and experiences gained during a vacation or visit to Canada.

Our country is vast—the second largest in the world—which brings both challenges and opportunities. Provinces and territories have varying needs and their respective tourism industries face different issues and priorities. The tourism industry worldwide operates in a challenging environment. Increasing concerns over global security and security risk responses such as the Western Hemisphere Travel Initiative (WHTI), threats to public health, natural disasters, volatile economic conditions and growing competition from new destinations are pushing countries to re-evaluate their approach to tourism.

It is in this turbulent global environment that Canada has to compete and our market share is eroding. In 2004, Canada slipped out of the top 10 destinations, both in terms of arrivals and receipts in favour of other destinations in Europe and Asia. Arrivals from the United States continue to decline. This erosion underscores the fact that the Canadian tourism industry must contend with growing competition from established (the United States and the European Union) and emerging (Latin America, Asia and the Middle East) tourism destinations.

Under these conditions, joint international marketing strategies and partnering arrangements and a strong Canada brand will be extremely important to ensure that the Canadian tourism industry is able to withstand global pressures and increase its market share. Collaboration will be required to develop common strategies to mitigate the anticipated impact of the WHTI, the most pressing issue currently facing the Canadian tourism industry. Also, public and private tourism stakeholders must be better positioned to address specific challenges presented by aging infrastructure, shifting demographics and travel patterns, new technologies, provincial/territorial priorities, and an evolving Aboriginal tourism industry.

The strengths and opportunities of the tourism industry in Canada are many—whether providing breathtaking experiences in a natural and pristine environment; highlighting provincial/territorial and multicultural diversity, developing quality Aboriginal tourism products and experiences, or serving the business and convention markets. Canada has the opportunity to showcase that it is a world class destination in upcoming major international and domestic events such as the 400th anniversary of the founding of Quebec in 2008 and the 2010 Olympic and Paralympic Winter Games in British Columbia. These events will provide an opportunity to brand Canada and position the country on the world stage in order to generate significant long-term economic benefits across the country.

The National Tourism Strategy lays a path for future growth of tourism in Canada by defining a new way of doing business. Through a focused and co-ordinated approach, federal, provincial and territorial (F/P/T) governments, in close partnership with their industry, can enhance their commitment to for the tourism industry. The world is changing and the tourism sector as a whole has to adapt to a changing environment. The status quo is no longer an option and the repercussions of inaction may be detrimental to tourism as a whole.