Feds' budget finally recognizes tourism

CTC's Michele McKenzie and Hank Stackhouse of Delta Hotels

OTTAWA—It took the “carrot” of the 2010 Olympic Games, plus the “stick” of a major global recession to bring tourism to the attention of the federal government, but for the first time in recent memory, the budget contains significant stimulants for the Canadian industry.

Specific tourism-related expenditures in Finance Minister Jim Flaherty’s Jan. 27 federal budget include:

o    $40 million over two years to the Canadian Tourism Commission ($20 million for domestic marketing and $20 million for emerging markets);

o    $100 million for marquee festivals and events over two years;

o    $150 million for Canada’s national parks system over two years ($75 million for visitor facilities and $75 million for national historic sites);

o    $25 million to create new hiking trails across the country;

o    $407 million for improvements to passenger rail service in the Montreal to Toronto corridor operated by VIA Rail;

o    Additional funding of projects which will assist in the development of vital tourism infrastructure;

o    $24 million over two years for cruise ship tourism;

o    $60 million over two years for local and community cultural and heritage institutions (i.e. theatres and museums); and

o    $140 million over five years for Northern Economic Development, a substantial portion of which will be directed towards tourism projects.

Industry response has been enthusiastic

Hank Stackhouse, who is now both president and CEO at Delta Hotels, attributes the positive tourism measures to all the work done by groups such as the Hotel Association of Canada, Tourism Industry Association of Canada (TIAC), and the Canadian Tourism Commission (CTC).

“They have been brilliant in trying to get the attention of government,” he said at the recent HAC conference.  “They have all come together so that we now have a foot in the door.  We now have an opportunity to push it open even wider.”

CTC president and CEO Michele McKenzie believes that the new money can be targetted into partnered marketing programs that will effectively increase tourism revenues to the small- and medium-sized businesses that are the backbone of Canada’s tourism economy.
McKenzie believes Canada’s tourism brand is strong and presents a concise message to everyone, fitting well with the tremendous excitement that is being generated by the Vancouver 2010 Olympic and Paralympic Winter Games.

“CTC strategy is already looking well past the Games and into a future where Canada is established as the premier tourism destination in the world,” she said.