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VCM
Partners Extranet
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In this issue:
Fall Road Shows
Media Report
New Product Bulletin
What's Your Vision For The Tourism Industry
In BC?
Federal program cuts a slap in the face to Canadian tourism
U.S. delays passport requirement
How is Travel Booked?
Emerging Markets
2006 Active Member Survey - Key Findings
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Fall Road Show
Vancouver, Coast & Mountains is deep into the planning of
our marketing tactics for the year from April 1, 2007 to March
31, 2008 and, as always, we appreciate the guidance that we have
received from many of our industry partners and our Board of Directors.
Now it’s time to share our collective ideas! Our Fall Road
Show this year takes us to:
Whistler and Lillooet - Monday, October 30
Harrison Hot Springs and Langley - Tuesday, October 31
Surrey and North Vancouver - Wednesday, November 1
Sechelt and Powell River - Thursday, November 2
Click here to register and for complete details.
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What's Your Vision For The Tourism Industry In
BC?
COTA , in partnership with the BC Ministry of Tourism,
Sport and the Arts and Western Economic Diversification (Canada),
is calling for stakeholder input into a visioning exercise on
the future of tourism in BC. As such, COTA has released a tourism
industry
discussion paper and workbook.
The discussion paper is the result of the first stage
of this industry-driven, two year project entitled Foresight; Shaping
and Sustaining a Vision for Tourism in British Columbia.
Within the document COTA and partners review the
latest economic, environmental and social research as well as the
results of hundreds of consultations. It identifies top issues
and trends that will affect the future success of the tourism industry
in BC.
Some of the major trends and issues identified in
the paper are:
• skills shortages; an aging population and demographic shift
• hosting of the 2010 Games,
• the importance of safety and emergency management,
• marketing BC,
• the state of infrastructure,
• provincial government policy,
• the emerging Chinese market and
• decreased tourism to, and from, the US.
Stakeholders are asked to fill out the related workbook
and submit it to the listed contact information.
The results of these submissions will help identify trends and issues that
will aid the Foresight project in planning for the future as well as developing
universal best practices, an industry sustainability policy and a Code of Ethics.
So we invite you to read the paper, answer the questions
in the accompanying workbook and contribute to the continued success
of the tourism industry in BC.
Click
here to read the discussion paper.
Click
here to fill out the related workbook.
Source: COTA Newsletter September 2006
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Media Report
From April to September 2005, Vancouver, Coast & Mountains
hosted 12 media on press trips around the region. This year,
during the same time frame, we have hosted 29 different media around
the
region – and that’s not even counting our upcoming
busy month of October. We are pleased to see such an increase
in media attention for the region, and we couldn’t do it
without the terrific help of our tourism partners. Click
here for a list
of recent press trips.
Media Opportunity
Please do not forget to let us know about your unique and different
stories. Travel media are always looking for something that
has never been written about before, so if you have something special
to tell us about, please make sure you keep your eyes open
for the next call for Story Starter submissions . Look for an email
from Amanda on October 17! If you have any questions about
Story Starters and how to submit, feel free to contact Jennifer at
604- 637-9046 or Amanda at 604-484-5361.
Calling all Christmas tales! We are actively collecting all things
Christmas related! If you have Christmas events planned, please
click here to download the Christmas story form. Send these as
soon as possible to Jennifer at jennifer@vcmbc.com.
Editorial
Our media relations team has also been actively scouring every
publication we get our hands on for editorial on our region.
We receive clippings from Tourism BC on a regular basis and
do our best to monitor press coverage of the region. You
may have recently received an article from us that features your
product. Our media relations team is keen to let you know when
you have been written about, and we look forward to keeping these
articles coming out to our tourism partners. Click
here to view some of the recent articles on our region, and
do not hesitate to send any articles you may come across our
way!
Upcoming media shows
Society of American Travel Writers (SATW) – Santiago, Chile
October 17 – 27, 2006
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New Product Bulletin
Let us know what you have happening that’s NEW! Throughout
the year, Tourism British Columbia and Vancouver, Coast & Mountains
send out a "New Product Bulletin" to domestic and international
tour operators, in order to highlight new product in the province.
New packages, new tours, new marketing partners, changes to existing
properties – if it’s new, we want you to be included!
The next Bulletin is going out in November and the deadline for
inclusion is Oct 13th 2006.
Submissions must EXACTLY follow the Tourism BC form guidelines
which can be downloaded here: http://www.vcmbc.com/page.cfm/8533.
Partial submissions will not be accepted.
Send all forms (or questions!), to Jason Knibbs, Sales Manager – Tour & Travel
at jason@vcmbc.com
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Federal
program cuts a slap in the face to Canadian tourism
OTTAWA, September 26, 2006-Unanticipated federal
program cuts announced yesterday are a slap in the face to the
Canadian tourism industry, says the group representing the interests
of Canada's 200,000-plus tourism-related businesses.
" The cuts threaten the well-being of small and medium-sized enterprises
in every province and territory-and the livelihood of 1.6 million Canadians," said
Randy Williams, President and CEO of the Tourism Industry Association of Canada
(TIAC). "And they don't even meet the government's own spending test in
terms of effectiveness, results and value for money."
That is because measures to support tourism are an investment, not an expense,
he noted, pointing out that they pay off exponentially in terms of increased
tax revenues. Tourism-generated tax revenues total an estimated $15.3 billion
a year, including a federal share of $7.7 billion.
Elimination of the Visitor Rebate Program, under which international business
travellers and tourists are reimbursed for the GST and HST they pay on eligible
goods and short-term accommodations, is the biggest cause for concern. The
government tabled a notice of ways and means motion proposing amendments to
the Excise Tax Act that would eliminate the $78.8 million program effective
April 1, 2007.
Established in response to lobbying by TIAC and other industry stakeholders,
the Visitor Rebate Program strengthens Canada's competitiveness as a visitor-friendly
nation and promotes spending by visitors-spending that supports Canadian jobs
and tax revenues. Canadian duty-free stores located at the Canada-United States
land border, which have the right to provide on-the-spot cash rebates to departing
visitors, thus encouraging them to spend the rebates in Canada, will be hit
especially hard by the program's cancellation.
All other major destinations have visitor rebate programs and, given the increasingly
competitive global environment, many are expanding the list of eligible goods
and services and making it easier for travellers to access them.
" The elimination of the Visitor Rebate Program reflects a total failure
on the part of the federal government to recognize today's economic realities
affecting Canadian tourism and Canada's competitiveness as a destination," Mr.
Williams said.
He was also critical of the lack of consultation preceding
the announcement. "The
secrecy surrounding the government's decision to eliminate the Visitor Rebate
Program makes a laughingstock of the Parliamentary committee process," he
pointed out. Indeed, the House of Commons Standing Committee on Finance launched
its prebudget consultation hearings just last week; TIAC testified before
the committee on September 19.
Also alarming is the clawback of $5.6 million in unused funding from the Canadian
Tourism Commission's relocation from Ottawa to Vancouver.
TIAC, which has been leading industry calls for more funding of Canada's grossly
underfunded national tourism marketing agency, says these funds should be converted
to marketing dollars instead. In fact, when the government set aside money
for the move, it promised that the Canadian Tourism Commission could spend
any remaining sums on implementing the new Canada brand. The agency has accordingly
allocated the money to marketing priorities.
The Canadian Tourism Commission actually needs an extra $100 million a year-an
amount that would generate matching private-sector investments-just so Canada
can keep up with the competition.
Other announced program cuts that will negatively affect the Canadian tourism
industry include a $4.6 million reduction in the Museums Assistance Program,
the accelerated windup of the Parks Canada Agency's Commercial Heritage Property
Incentive Fund ($2.9 million), and elimination of $2.9 million of non-committed
funds for organizations that include Canada's regional economic development
agencies.
" By taking the tourism industry for granted, the government is shooting
itself in the foot, because tourism tax dollars support a range of public priorities," said
Mr. Williams. "And the government can't exactly plead poverty in this instance," he
said, noting that Ottawa simultaneously announced a $13.2 billion budgetary
surplus.
The Tourism Industry Association of Canada is the national private-sector advocate
for Canada's $62.7 billion tourism industry. It performs a unique and pivotal
role in ensuring the Canadian business and policy environment works for tourism,
by communicating its importance to Canadians, advocating positive measures,
and lobbying government for action.
Source: TIAC Press Release: September 26, 2006
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U.S. delays passport requirement
WASHINGTON - Canada has scored a potentially significant victory
in its efforts to delay new U.S. travel rules that threaten major
disruptions in tourism and cross-border commerce.
Negotiators from
the House of Representatives and Senate late Monday agreed to
delay, until June 1, 2009, a Bush administration
requirement for all Canadian travellers to carry a passport or
alternative security-enhanced identification document when entering
the United States across land borders.
The proposed delay is included in a $34.8 billion US homeland
security appropriations bill that is now headed for a final vote
before the House of Representatives and Senate adjourns for the
fall, likely later this week.
The legislation would then go to President George Bush for his
signature.
Canadian officials said the agreement by the House and Senate
was a breakthrough because, until now, only the U.S. Senate had
favoured a delay in the Western Hemisphere Travel Initiative.
Prime Minister Stephen Harper has been pressing the White House
and Congress for a delay in implementing the passport rule, arguing
it would devastate border communities and cause headaches for Canada-U.S.
trade.
Secretary of State Condoleezza Rice, during a recent visit to
Canada, has re-assured Canadians that the U.S. will accept a travel
document other than a passport. But the State Department and Homeland
Security have not provided Canada with any details on what security
feature the new document would require, and Harper has said he
is reluctant to introduce a new travel card.
Currently, Canadians entering the U.S. must prove their identity
and citizenship, frequently by producing just their birth certificate
and driver's license.
In order to meet the U.S. demands, some Canadian officials have
proposed the creation of high tech driver's licence with enhanced
security features and biometrics.
Source: Sheldon Alberts, CanWest News Service
Published: Tuesday, September 26, 2006
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How is Travel Booked?
Travel research and strategy firm PhoCusWright Inc. found that
almost 40 percent of all types of travel purchased in Europe will
be booked online by the end of 2008.
The findings are part of a major study conducted by PhoCusWright
across five major European markets in summer 2006. The PhoCusWright
study revealed that transaction volume will more than double the
proportion of 2005, according to preliminary findings to be presented
at The PhoCusWright Travel Conference, 25-27 September 2006, Hôtel
Le Plaza, Brussels, Belgium.
Over the next three years, online corporate bookings will grow
at twice the rate of online leisure/unmanaged business travel.
By 2008, one out of every five euros of corporate travel spent
will be transacted online, up from one out of every 20 in 2005.
Nevertheless, the percentage of leisure/unmanaged business travel
booked online is and will continue to be significantly greater
than that of managed corporate travel.
For travel, tourism and hospitality suppliers, sellers and marketers,
these findings are significant as the online transaction marketplace
begins to match traditional marketplace activity in size. Strategic
and infrastructure implications for thousands of companies along
the travel industry value chain across European markets are significant
as the industry prepares for this powerful, customer-driven change.
Other findings in the study will be shared with attendees at the
Brussels conference. A research brief titled Online Travel in Europe:
Key Findings will be presented at the event; it summarizes data
on the European online travel market -- suppliers and intermediaries
-- as a percent of the total travel market and growth rate by country.
PhoCusWright analysts will also debut newly released research findings
on business imperatives that are essential for planning and budgeting
for next year and beyond.
Source: Duesseldorf, Germany and Sherman, Conn., USA, September
19, 2006
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Emerging Markets
There is a growing thought that countries like Canada can no longer
depend on their traditional markets. Seasoned travellers from markets
such as the U.S. and Germany have many new options for their travel
budget, and are being exposed to marketing from many emerging destinations.
So, what new possibilities exist for Canada? Consider this option:
Middle East travel and tourism is expected to generate US$147.6
billion worth of economic activity (total demand) in 2006, growing
to US$279.4 billion by 2016. Of this, the outbound market is estimated
to be worth US$42 billion in 2006 growing to almost US$93 billion
in 10 years.
Participants in the PATA Travel Mart 2006 Middle East Outbound
luncheon workshop learned this today (September 14) at AsiaWorld-Expo
in Hong Kong.
Dubai-based Pacific Asia Travel Association
(PATA) Director-Gulf Region Ms Nicki Page and Asian Overland
Services Tours & Travel
Group Managing Director Mr Anthony Wong were panellists. PATA Director-Strategic
Intelligence Centre Mr John Koldowski moderated the interactive
session.
Mr Wong offered tips for developing and sustaining
profitable partnerships with Arab tourism operators. According
to Mr Wong,
the majority of tour operators in the Middle East, especially the
wholesalers, are familiar with the international business environment. "The
UAE, in particular, has an open business style," he added.
However, personal relationships and word-of-mouth
are keys to dealing with Arab operators. "If your company is new in the
Middle East market, it is better if someone else facilitates introductions," said
Mr Wong. "This will make the market entry process easier."
Mr Wong warns against rushing into business
agreements. "Bear
in mind that transactions tend to take longer in the Middle East,
so do not let this create a problem between you and your business
partner," he said. "Try to find out the operator's needs.
Do not spend time explaining your products; provide only what your
business partner is looking for."
"When a good business relationship is established, Arab operators
will rely on you more than you expected," said Mr Wong. "Their
demands are very high, therefore, avoid open-ended commitments.
Just promise what you can provide."
Mr Wong said the key to sustaining profitable
partnerships with Arab operators was to visit them frequently
and call them on a
weekly basis. "Arabs have a long oral tradition, they prefer
verbal conversation," he added. "Avoid overloading your
business partner with written data."
The Gulf Region is a large and growing source of travellers to
Asia Pacific. Arrivals to Asia have grown at an average rate of
12% a year since 2001. For Asia Pacific as a whole, arrivals growth
from the Gulf has been a solid 4% per annum over the same period.
Airlines are also recognising the huge two-way growth potential
between the Gulf and Asia Pacific, with scheduled seat capacity
rising from around 276,000 per week in 2000 to 430,000 per week
in 2006.
"During summer, June to September, the climate of the Middle
East is hot and dry," said Mr Wong.
Ms Nicki Page said Saudi Arabia and the UAE
were the two biggest outbound markets in the Middle East both
in volume and per capita
terms. "Saudi and UAE consumers travel more often and in bigger
groups, stay longer and spend more than any others in the Middle
East and most other travellers globally," she said.
ARAB TRAVELLERS' LIKES AND DISLIKES BY ANTHONY WONG
** Arabs spend an average of three weeks on holiday
** Arabs are high-end clients. Do not recommend budget services
** Arab travellers do not like to mix with other Arabs while on
holiday
** Arab families prefer apartments and connecting rooms
** Arabs travellers prefer rooms with sea views
** Arab travellers demand that breakfast be included with accommodation
** Many Arabs do not like oily or spicy food. They like seafood
** Arab travellers prefer to talk to the boss if they have a demand
or complaint
** Arabs love shopping, especially for branded clothes and electrical
items
** Arab travellers prefer private tours
** Arab travellers prefer top-of-the-range vehicles
** Arabs like waterfalls, beaches, lakes and other water-based
attractions
** Arab women use private or women-only swimming pools.
Source: PRESS RELEASE: AsiaWorld-Expo - HONG KONG, September 14,
2006
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2006 Active Member Survey - Key Findings
The 2006 Active Member Survey was conducted in March of this year.
The goal of this year's survey was to update industry statistics
regarding commerce levels and top destinations for student and
youth travel. Below are the key findings:
1. Size and participation information:
For the year ending December 31, 2005 our Active SYTA members accounted
for over $1.55 billion in student/youth travel and provided trips
for over 2.2 million participants.
2. Average Size of the Active Members:
Mean Size
25,800 participants
$16.63 million in total student/youth sales
$698 trip cost
Median Size
13,650 participants
$5 million in total student/youth sales
3. Percentage of total dollar volume of sales that is student/youth
travel?
29% of responding companies had 100% of sales volume in student/youth
travel
53% had 80-99% of sales volume in student/youth travel
18% had less than 80% sales volume in student/youth travel
4. Average Dollar Size (revenue from student/youth travel operations
only):
26% of the responding companies had less than $2.4 million in sales
38% had between $2.5 million and $7.4 million in sales
17% had between $7.5 million and $19.9 million in sales
19% had more than $20 million in sales
5. 2006 sales from student/youth travel operations relative to
2005 sales:
53% of the responding companies expected sales to be up
26% expected sales to be about the same
21% expected sales to be down
6. Percentage of revenue generated from day-only trips:
29% of responding companies had 0% of their revenue coming from
day-only trips
47% had less than 20% of their revenue coming from day-only trips
24% had more than 20% of their revenue coming from day-only trips
7. Number of companies offering tours to US and Canada:
97% of responding companies offered trips to the US and Canada
3% of the responding companies did not offer trips to the US and
Canada
8. Percentage of student/youth tours to Canada or US:
30% of responding companies had less than 20% of tours going to
US and Canada
38% had between 20% and 99% of tours going to US and Canada
32% had 100% of their tours going to US and Canada
9. Average length of Canadian or US tour:
34% of responding companies indicated tours averaging 1-3 days
45% indicated tours averaging 4 days
21% indicated tours averaging 5 days or more
10. Average cost (per student/youth traveler) for US or Canadian
tour:
6% of responding companies indicated average cost of less than
$249
47% indicated average cost of $250-$499
47% indicated average cost of more than $500
11. Average daily tour cost for Canadian or US tour (excluding
souvenirs):
40% of responding companies indicated less than $119
34% indicated between $120 and $179
26% indicated more than $180
12. Average spent on souvenirs over entire US or Canadian tour:
34% of responding companies indicated less than $59
30% indicated between $60 and $99
26% indicated more than $100
13. Number of companies offering International tours (outside
Canada and US):
68% of responding companies offered international trips
32% did not offer international trips
14. Average length of international tour:
26% of responding companies indicated tours averaging 7 days or
less
48% indicated tours averaging 8-10 days
26% indicated tours averaging 11 days or more
15. Average cost (per student/youth traveler) for international
tour:
4% of responding companies indicated $999 or less
61% indicated between $1,000 and $2,400
35% indicated $2,500 or more
16. Average daily tour cost for Canadian or US tour (excluding
souvenirs):
28% of responding companies indicated less than $179
45% indicated between $180 and $249
27% indicated $250 or more
17. Average spent on souvenirs over entire international tour:
8% of responding companies indicated less than $99
26% indicated between $100 and $139
66% indicated $140 or more
18. Average number of participants taken on student/youth tours
in 2005:
35% of responding companies indicated less than 4,999 participants
32% indicated between 5,000 and 19,999
18% indicated between 20,000 and 39,999
15% indicated more than 40,000
19. Projected change in volume of participants in 2006 relative
to 2005:
53% of responding companies expected number of passengers to be
up
26% expected number of passengers to remain the same
21% expected number of passengers to decrease
20. Percentage of companies that conducted business with the following
grade levels:
1% or more of Passengers 10% or more of Passengers 80% or more
of Passengers
Grades k-5 50% 20% 0%
Grades 6-8 85% 70% 6%
Grades 9-12 98% 88% 35%
Youth ages 18-25 41% 9% 0%
21. Percentage of travel booked through these categories:
1% or more of Passengers 10% or more of Passengers 80% or more
of Passengers
Re-sellers/Travel Agents 44% 6% 3%
Schools / youth groups 94% 91% 91%
Students/Parents 74% 34% 9%
22. Most traveled to destination in 2005 by tour type:
Responding companies indicated:
Music: 1. New York, 2. Orlando, 3. California
Educational: 1. Washington, DC, 2. Chicago, 3. Ottawa
Sports: 1. Orlando
International: 1. Italy, 1. France, 1. Austria
23. Fastest growing destination in 2006 by tour type:
Responding companies indicated:
Music: 1. New York, 2. Chicago, 2. New York, 3. California
Educational: 1. Washington, DC, 2. Toronto, 2. New York
Sports: 1. Orlando, 2. Europe
International: 1. Asia, 2. Europe, 3. South America
24. Volume of commercial and charter air booked in 2005:
25% of responding companies indicated less than $250,000
39% indicated between $250,000 and $999,999
36% indicated more $1,000,000
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Your feedback is most
welcome on any subject – please e-mail kevan@vcmbc.com.
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