The Canadian Tourism Commission recently stated that trying to attract American tourists has become a waste of time and effort for them. Their promotional campaigns are not leading to acceptable return value for their investment. Even the territory of Ottawa, home of the moose, mountains, and Mounties, has lost interest in attracting U.S. tourists.
According to current reports, over the last decade the United States has become one of Canada's worst tourism markets. The data show that the average American tourist spent only $518 dollars per trip to Canada in 2012, which is the lowest average that's spent by any other group of international travelers to the Canadian territories.
This amount is admittedly extremely low, and US tourism to Canada has been on steady decline over the last three years. Individual travelers over the same period that arrived from Brazil spent an average of $1,874 dollars per visit, which is over three and a half times the amount spent by the average American visitor.
In its 2012 annual report that was recently released, the Canadian Tourism Commission details and outlines its current plan to stop promoting Canadian tourism in the United States. The corporation presently responsible for national tourism marketing has stopped current consumer marketing and advertising between travel agents and tour operators located in the United States. They're also suspending all social media relations, as well as public relation efforts. This includes the interactive Twitter wall located in Chicago.
The commission also stated that they will be rather directing their efforts to overseas markets. These markets are proving to produce a higher return on Canada's current tourism investments. The commission has concluded that Canada's efforts are better served in higher yielding countries such as Brazil.
The tourist industry is a trillion dollar international market, and it can be extremely competitive. Several factors that have contributed to Canada's change in strategy include:
- Diminished travel to Canada from the US has lowered Canada's tourism revenue from 35% in the year 2000, to only 19% in 2012.
- Canada has dropped from a top 10 tourist destination, to number 18 in the year 2012.
- Canada's tourism funding has been reduced by over 13 million dollars in 2012, and they now must accomplish more while spending less.
- Canada's tourism deficit is out of balance, and the amount of money that Canadians spend abroad is more than double what the country brings in from its visitors.
- Canada's travel deficit is predicted to reach a staggering 17.8 billion dollars in the year 2012.
By restructuring its resources, the Canadian tourism board believes that they'll effectively improve the country's competitiveness by tapping into the emerging overseas markets. They want to use their marketing capital to access travelers who have a high probability to spend more money while on holiday. The top five spenders in Canada in 2012 were Japan, Brazil, South Korea, and Australia.