Canada-United States Transportation Border Working Group (TBWG) Plenary Meeting

Winnipeg, MB

“Cross-Border Passenger Cross-Border Passenger Services and Tourism”Services and Tourism”

Christopher JonesTourism Industry Association of Canada

October 28, 2009

About the Tourism Industry Association of Canada (TIAC)

TIAC is the leading national private sector advocate for the tourism industry.

Founded in 1930 and based in Ottawa, TIAC represents the interests of Canadian tourism businesses nation-wide, taking action on their behalf and promoting positive measures that help the industry grow and prosper.

TIAC is the voice of Canadian tourism, representing all facets of the industry.

Cross-Border Travel

83% of Canada’s inbound international travelers are American

Top 5 American states of origin for overnight trips to Canada, in descending order, are: New York, Michigan, Washington, California, Ohio

Inbound travel from the U.S. fell 12% between 2007-2008, and 8.1% between July 2008 and July 2009

Since 2000, inbound travel from the U.S. has fallen 48.6%, from 44 million person-trips to 22.6 million in 2008

Cross-Border Travel cont.

Number of same day visits by automobile declined 24.6% between July 2008 and July 2009, and 18.5% between 2007-2008

Number of overnight visits by automobile fell 2.8% between July 2008 and July 2009, and 7.5% between 2007-2008

In the last year, numbers of Americans entering Canada by motorcoach have fallen 23.8%; and by train, boat and other modes by 5.2%

Cross-Border Travel cont.

Spending by American travelers in Canada has fallen to 1.7 billion in Q2 2009, down 8.6% from the previous year and to the lowest level in over 12 years

Travel deficit with the U.S. is -$9 billion (2008) Canada remains the U.S.’ largest inbound market for

visitors

Near parity of Can-U.S. currencies will likely incent more Canadians to head south

Traditional Canadian border destinations suffering e.g. Niagara, Windsor, Victoria

Various Reasons for the Decline

Post 9/11, increased security and vigilance has led to higher transaction costs and longer wait times at border

Traveler documentation confusion along with increasing costs for enrollment and participation in WHTI-compliant identification programs

“Buy American” policies

Near parity of Canadian currency – days of 63¢ $ over

Gas prices – volatile but rising steadily in the long run

Steep discounting by U.S. hoteliers, destinations and cruise lines, and emergence of exotic, new & cheaper destinations have drawn Americans elsewhere

Remedies: Preclearance for Land and Marine Modes

Implement rail, bus and ferry passenger preclearance or onboard clearance through use of advanced passenger manifest information

U.S. customs pre-clearance is used at 8 Cdn airports

Current rail service frequency and corridor expansion in both countries makes this an opportune time

Implement inland inspection for commercial trucking to improve overall flow at our border crossings

Would eliminate congestion and unnecessary wait times, making travel experiences more efficient and predictable

Remedies: Improved Traveler Information and Peak Period Staffing

Installation of a state-of-the-art travel information system measuring wait times will enable efficient allocation of border resources

Staffing models should respond to peak period commercial and leisure traffic patterns in order to decrease wait times

Wait times and other information, such as alternate routing and location of rest stops, should be communicated to travelers

We await the recommendations of the bi-national Border Wait Time Working Group in this regard

Remedies: Traveler Identification Documents

Lower passport possession rates in the U.S. mean additional WHTI-compliant travel documents are needed

Increase availability of Enhanced Driver’s Licences, Enhanced Identification Cards and PASS cards (U.S.)

Broader and more universal acceptance of trusted travel documents is needed among the general populace and across all modes of transport

The NEXUS card is not accepted by Canadian authorities as a stand alone document in non-NEXUS lanes or at secondary inspection points

Communicate rules about children and youth better Uncertainty has constrained family travel Publicity campaign needed

Remedies: RFID Technology

Radio Frequency Identification (RFID) accesses and transmits to border officers information embedded in chips on trusted traveller documents

Enhances screening of travelers and reduces delays and wait times at major border crossings

RFID is more efficient and is being used at 34 land crossings in the U.S., representing 95% of U.S. border traffic

Canada should also look to adopt vicinity reader technology

Conclusion

Border has “thickened” to the mutual detriment of Canadian and U.S. tourism industries

Canada sideswiped by U.S. efforts to appease security hawks and domestic interests in U.S. South West

Regrettable, given two countries share common language, strong family ties, and deep levels of economic integration

Investments in new infrastructure, new pre- and inland-clearance models, staffing and technology would help matters