In today’s Ontario, the tourism industry is the fastest growing sector of the economy. The hospitality industry in Ontario is a prominent sector with over 22,000 foodservice establishments and 3,000 accommodation properties and directly employs close to 400,000 Ontarians. The industry is one of the most dynamic and competitive sectors of the provincial economy. The $25 billion industry has the potential to create more jobs, more investment and more service destinations. It directly generates close to $9 Billion in government revenue through taxes alone. With many impediments upon us Ontario hotels have yet to reach the year 2000 REVPAR numbers and the foodservice sector’s desert storms have not stopped since 9/11. Ontario’s tourism industry needs to stimulate a competitive advantage.
Tourism competitiveness is not unique to Ontario but it is recognized as a global phenomenon leading to even more stiff competition in the future. Demand has been and will continue to change, the traveler has changed and technology is continuing to bring new ways of doing business. In global jurisdictions where governments worked with the private sector they were able to invest in tourism product generating positive return and contributing to overall economic growth.
The ORHMA welcomed the Ontario’s Tourism Competitiveness Study chaired and assembled by Greg Sorbara. Many recommendations in the study were included in the ORHMA’s submission paper. We believe the solutions to the impediments are in these recommendations that will support the Mapping out of Ontario’s Tourism Future and reverse the downward business trend to make our industry brighter and successful. Our visitors need easy access to travel here! Currently they are kept away by man made barriers... yet we question why we experience a drop of around 35% in international visits since 2000. We are referring here to a shortfall of over $15M visitors.
The Ontario Government should lead the way and lobby the Federal government to develop policies for border efficiencies, in liberalizing air services and reducing airport expenses. Canada and the USA’s special relationship once included easy border access contributing to uncomplicated tourism flow. The borders still facilitate the largest bilateral trading relationship in the world. There are enormous benefits to the two countries but the access issues have diminished the tourism industry. Ontario can not be complacent and rationalize this as a “Homeland Security” and strictly a “Federal Government” issue. We need to learn from the European Union which overcame historic differences and now are operating with “free borders”.
Canada’s international airports are the most expensive and restricted aviation ports in the world. Canada is a “Fly-to” destination and our cost structure is a barrier to success. Exceedingly high airport rents, fuel taxes and security fees have dropped Canada down to 125th position from 109th for aviation cost structure based on the World Economic Forum Travel and Tourism Competitiveness Report. Canada also requires an effective Visa system to facilitate key emerging markets including Brazil, Russia, India, China and Mexico. In addition, this will assist the availability of people to work in the lodging industry under the federal Temporary Foreign Workers Program. ACCESS is also about getting around for travelers to experience the beauty of Ontario. Most importantly transportation work and expansion in our cities and in our highways need to take into consideration the tourism sector demands.
- We need express transportation services and congestion ease.
- One transportation pass that can be accepted by trains, subways and buses.
- And we require better signage. Ontario has little in the way of directional signage to any of the major tourist oriented facilities or the scenic back routes like you’re beautiful SW that will drive visitations and stimulate the local economy.
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A Key recommendation of ours is the need of investment... investment to develop fresh attractors to draw visitors and to improve our competitiveness. The province’s existing attractions have matured. In many instances these have passed through the growth and maturity life cycles and are in the decline stage of experiencing lower demand. We now have a non- competing product.
In driving investment we need a mechanism that works... at Government level we need a success team that works and attracts the private sector and makes it happen with all three levels of government.
- A team that is proactive and goes out and sells.
- A team with empowerment that takes away resistant obstacles and makes decisions with incentives.
- A success team that operates within a business plan with accountability and deadlines irrelevant of ministry staff changes.
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Another ask to government is to reduce the ‘regulations” in our business... red tape that interferes with our operator’s day to day work... we are an extremely regulated industry... this does not only bring burdens but keeps us from what we are all about... serving our guests... keeps us away from focusing in “service excellence”. These recommendations are positioned to contribute to the tourism economy of Ontario’s communities.