December 21, 2009
In this issue:

Canada now has Approved Destination Status (ADS) with China
The Impact of the HST on Tourism in Ontario & BC
Media Update
Travel Trade Update
Canadian Tourism Commission Wins Gold
Commemorative Olympic Transit Map Available from Translink
Prepare your staff to Welcome the World!
Seven Key Consumer Trends for 2010
BC Regional Tourism Trivia

There has been great expectations for this for several years, and envy of other countries (including the U.S.) that were granted this status earlier than Canada. It is indeed great news, but let’s not get overly optimistic of the impact of this decision.

Currently, Canada enjoys about 125,000 visitors from China, many of them our highly desired business client. Some are gamblers – recently heard a story of a man flying in on a private jet, reputedly a $5 million a year gambler!

Canada and China are now engaged in creating the process to allow leisure visitors to travel to Canada, and that is likely to take three months on the Canadian side and up to a year on the China side. The message, therefore, is not to expect a sudden and large influx. Even then, projections are that the total number may only grow to 500,000 in five years, and those additional visitors will be very value conscious, and not reflective of our existing visitors.

Still, in this challenging economy, every new visitor is very welcome!

The Impact of the HST on Tourism in Ontario and British Columbia

On Monday, December 07 at 3:30 pm EST, TIAC appeared before the House of Commons Standing Committee on Industry to discuss the recent economic performance of the services sector in Canada. Appearing on behalf of TIAC was Chris Jones, Vice President, Public Affairs, supported by Catherine Sadler, Manager, Research.

While TIAC will convey to the committee its pleasure at the signing of an Approved Destination Agreement with China announced last week, it has focused its presentation on the impact of the Harmonized Sales Tax regimes, which will be introduced in July 2010 in both Ontario and British Columbia. The new policy change is likely to have adverse implications for the tourism sector in these two major destination provinces.

The HST is nominally a “smart tax”. However, the introduction of the new regime will result in the tourism industry in both Ontario and B.C. facing significant tax increases in the price of tourism-related products and services. (7% in BC and 8% in ON.) This increase in the tax applied to goods and services such as campsite fees, boat tours, air charters and restaurant meals, will result in higher prices for the end consumer, as many of these tourism products and services were previously exempt from PST/RST.

As such, and given the recent declines in visitation and tourism spending that Canada has seen over the past year, TIAC is urging the federal and provincial governments to consider mitigation strategies to help alleviate the impact of the HST.

TIAC will also highlight to the committee that while some mitigation strategies exist in the HST regime as currently outlined, including Input Tax Credits (ITC), these will not sufficiently alleviate the impact of the additional tax as tourism is a labour-intensive industry and labour does not qualify as an ITC.

As an example, TIAC will put forth the case of a B.C.-based company, the Oak Bay Marine Group. With 15 operations and more than 1,000 employees on Vancouver Island, Oak Bay estimates that the impact of the HST as follows:

• 78% of their products and services will have 7% tax added
• $1.8 million - Net cost increase for their products and services
• $300,000 - To be reimbursed through ITCs
• Net loss of $1.5 million
• Job loss of 40-50 positions

TIAC acknowledges that the Federal Government’s mandate does not include specifying which provincial industries will be exempted or grandfathered under the HST, however it does believe that steps can be taken at the national level to alleviate the impact of the new measure. To help lessen the impact of the HST on the tourism sector in these provinces and across the country,

TIAC will put forth to the committee three essential recommendations:

1. Ensure the full HST amount is eligible for rebate under Foreign Convention and Tour Incentive Program (FCTIP).
2. Reinstate individual rebates to foreign visitors on GST/HST for qualifying goods and services.
3. Re-affirm the principle in the tax code that tourism, as an export industry, ought to be exempted from national value-added taxes such as the GST/HST. Click here to view the submission to the Standing Committee on Industry.

For more information on TIAC’s appearance, or the HST issue, please contact Christopher Jones, TIAC Vice-President, Public Affairs at cjones@tiac.travel or 613-238-7557.

Recent Trade Activities

National Tour Association Annual Convention & Marketplace – Nov 14-18, 2009 – Reno, NV
NTA's Convention '09 was a new experience for everyone who attended thanks to its enhanced business format. For the first time, it was a “DMO seated” format similar to Rendezvous Canada with all Canadian DMO’s together in one section. This allowed for the buyers to group their appointments more effectively. The number of buyers at this year's Convention was higher than at the 2008 version. Due to the new format, increased interest in BC and because Vancouver, Coast & Mountains Tourism only participates in the NTA Convention every other year, the number of pre-selected appointments was at an all time high. While each appointment focused on different needs, there was a common theme of looking for new ideas and itineraries for the 2011 travel season.

Canada’s West Marketplace – Nov 29 – Dec 1, 2009 – Victoria, BC
The 22nd annual Canada's West Marketplace trade show took place in Victoria from November 29th to December 1st, 2009. Each year, the trade show brings together more than 400 British Columbia and Alberta tourism suppliers with tourism buyers from across the world in one location. While being the most casual of all the annual Trade marketplaces and conventions that Vancouver, Coast & Mountains Tourism attends, it is typically one of the best to discuss future business. This year in Victoria was no different. Your VCM representative had a full appointment schedule, meeting with buyers from our key markets of UK, Germany, the Netherlands and Ontario. With many 2010 brochures and tariffs set to be released, the majority of buyers were focused on 2011 planning and aimed at the Fully Independent Traveler (FIT) market.

Canada’s West Marketplace Post – Fam – Dec 3 & 4, 2009
With the assistance of Tourism British Columbia, Vancouver, Coast & Mountains Tourism was one of two Regions to be awarded a coveted Canada’s West Marketplace familiarization (Fam) tour slot. VCM elected to hold our Fam at the end of the Marketplace, while our friends at Tourism Vancouver Island took the pre-marketplace spot. With the theme of “Vancouver – In Style”, cool weather with clear blue sky greeted the 8 participants on the two day Fam. Due to the short duration of the post-fam, the goal was to highlight some of the lesser known culinary and culture options that are available during the “off- season”. “A great big “THANK YOU” for one of the best FAMs I have ever been on. The diversity of experiences was fantastic and I have taken away some new experiences that I know my clients will be thrilled to have included in their itineraries”. – Ed Smith, Canada & Alaska Specialst Holidays

For questions about Vancouver, Coast & Mountains travel trade activities please contact Jason Knibbs at jason@vcmbc.com or 604-484-5363.

Commemorative Olympic Transit Map Available from Translink

Everything you need to know about public transportation routes during the Games! This map highlights the transit routes to and from the Olympic venues and LiveSites with walking times from the transit stops. In addition, it has complete transit maps of the entire Metro Vancouver region and comes in a convenient pocket size format, click here for a preview.
Maps are $2.00 each/minimum order of 25

Available online at translink.ca/shop beginning December 18th

Customer service will be a key component for creating lasting impressions for travelers visiting BC for the Vancouver 2010 Olympic and Paralympic Winter Games. To help prepare front line staff for Vancouver 2010, WorldHost® has developed an exciting new half day workshop - Fundamentals Plus!

Fundamentals Plus prepares participants with:

• practical skills related to the delivery of excellent customer service
• understanding of the appropriate language and protocol to deliver exceptional service to customers with disabilities
• information about the Vancouver 2010 Olympic and Paralympic Winter Games

Click here for prices and upcoming dates.

Seven Key Consumer Trends for 2010

This year’s adversity due to recession has created a new set of values with consumers balancing their spending plans for 2010, Mintel predicts.

The research company forecasts that “resilience” will define consumer behaviour, as people’s strengthened resolve and changed behaviours shape new lifestyles.

Mintel predicts seven key consumer behaviour trends for the year ahead following the 2009 global economic recession.

The organisation’s director of foresight Richard Cope said: “While in 2009, fear played an important role in shaping consumer behaviour, 2010 will see a return of confidence and adaptation to overcome the restraints previously imposed on consumers.

“ Balance has become the new mantra. As consumers find they are able to spend again, we’ll see balanced spending and balanced consumption as key characteristics of next year.”

1. Resilience
2. Reviewing & Re-evaluating
3. Prove It – Accountability
4. Escapism
5. Media Evolution
6. Ethical Responsibility
7. Stability

For the complete article and details about each indicated behavior trend please download the article here.

Reprinted from TravelMole - The Online Community for the Travel & Tourism Industry

Did you know ... that in 1950 provincial promotional efforts of the BC Government Travel Bureau (BCGTB) included for the first time, distribution of regional travel brochures and then in 1952, 32 radio spots featuring regional attractions were initiated? In 1959, the BCGTB ended regional promotional efforts returning to a focus of just promoting the province. It wasn’t until 1961 that the government inaugurated a matching grant plan, matching dollar-for-dollar marketing funds available to eight regions of the province – a total of $50,000 available. By the end of that year, five of the regions had accessed their full quota of funding.

In 1962 the Greater Vancouver Tourist Association “Region B” with the assistance of the matching fund program had $32,000 available for marketing, while the year before without the program only had $17,000 to use for promotional advertising.

Source: Selling British Columbia 1890-1970: by Michael Dawson, available from Amazon.com