Tourism One-Minute Report (Canada

Facts You Need to Know in 60 Seconds or Less
May 6, 2010

TOURISM AND THE VOLCANO… The impact of flight shutdowns due to Iceland’s volcano eruption was a key driver of weakness in European financial markets in mid-April, second only to the fraud charges against Goldman Sachs. Airlines were the largest losers, showing declines in the EU by 2.7 to 7.7% by April 19. By comparison, Eurotunnel (across the Channel) was up by 2.7%. Air travel restrictions continue
across Scotland and Ireland. i Air Canada reported a system-wide decrease in capacity of approximately 3.0% below expected levels, the result of cancelled flights due to the volcano.ii

EUROPEAN FINANCIAL INSTABILITY AFFECTS CURRENCIES WORLDWIDE The Greek economy is spiraling into a big black hole, with Spain and other European countries potentially joining Greece. Investors run to the US dollar for comfort and safety – as a result, the plummeting EURO is affecting currencies all over the world. Here are some samples (at time of publication) of currency values against one US Dollar: Euro: 0.79 EUR Pound: 0.64168 GMP Australia: 1.13 AUD Japan: 91.7 JPY China: 6.87 Canada: 1.05 CAD

VIDEO IS THE MEDIUM WITH THE MESSAGE ComScore released some amazing statistics on the US habit of watching video online, revealing this medium’s value to tourism outreach to this important market. Just in the month of March 2010,

84.8 percent of the total U.S. Internet audience viewed online video. 1

However outbound travel to Canada continues to be negative. Outbound travel is expected to increase in 2010 with the strong Canadian dollar. which may indicate pent-up demand for 2010.7 videos.4 % in 2009 over 2008. viii INTERNATIONAL OUTBOUND TRAVEL DOWN The UN World Tourism Organization is reporting a 4% decline in international tourist arrivals. Africa and Oceana continue to surge.6 videos per viewer). Outbound Page 2 of 4 .vi Consumer confidence. Travel by Americans to the Middle East.4% to all other countries over 2008.6 hours of video per viewer. BUT STAYING HOME US Outbound travel increased in January by 3. 80 % of the estimated 5 million UAE population comprises expatriates and many travel to their home countries at least once every two years. 2008.v YPartnership’s new publication Portrait of American Travelers℠ reveals that Americans may now. The average Hulu viewer watched 26.3 million viewers watched 12.1 (2002 = 100) in June – the fourth consecutive month of increase for the index.1%. and the Caribbean and Asia saw healthy upticks in January as well. declining 2.   135.iv Retail sales in the US continue to improve. in fact. The duration of the average online video was 4. as Canadians continue to seek winter warmth. 61.4). travel to the Caribbean by Canadians increased by (95. from 920 million in 2008 to 880 million in 2009. vii THE SUN AND A STRONG DOLLAR AFFECT CANADIAN TRAVEL CHOICES In 2009.9 billion videos on YouTube. which had rebounded in March. totaling 2.outbound travel declined 5.6% from the previous month and 7. according to the US government (ITA). be taking more “staycations” than previously thought – at least 1 out of 4.3 minutesiii US MARKET – MORE CONFIDENT. and into 2011. This trend has potential for staying robust for 2010. Canadian outbound travel to the US in 2009 decreased by 10% and by 1. United Arab Emirates (UAE) . gained further ground in April.6% over March 09. with the US Census Bureau reporting an increase in US retail and food services sales for March 2010 by 1. The USbased Conference Board’s Consumer Confidence Index® is now at its highest reading in about a year and a half (Sept. Canadians continue the slow steady growth in confidence as the Canadian Conference Board’s Index of Consumer Confidence stood at 82.1% in this first month of 2010.1%.

Tourism Australia. The CTC plans to keep the heat on in 2010.Ryanair increased its volume of passengers by 13% over generated $10. from 5. aimed at encouraging Australians to use accumulated holiday time to holiday in their home country. strategic planning. Egypt and Turkey reported positive growth – both currencies had a favourable exchange rate against the pound. If we can unlock some of this leave and get people to use it to holiday in Australia it would be of great benefit to our $65 billion [AUD] domestic tourism industry. Managing or contact us at mmj@mahonjones. marketing. which reached one-to-one parity with the Euro at the beginning of 2009 and remained almost level throughout the Page 3 of 4 . upon launching the “No Leave. generating $372.xi TOURISM PROVES STIMULATING TO THE CANADIAN ECONOMY The Canadian Tourism Commission recently tabled its annual report in the Canadian Parliament. As a result departures to Europe and the US declined significantly – with departures to the US down as much as 30% over the year. private operators regarding tourism/travel trends." Geoff Buckley.06 million trips and 76.7 million in tourism revenue. This wasn’t helped by the fluctuating pound. reporting that its marketing initiatives returned $1.x China – the number of outbound trips by Chinese grew by 3. and communications as well as cultural tourism.xiii “SIGN OF THE TIMES” QUOTE "Australian employees have accumulated a massive 123 million days of annual leave which is equal to $33 billion [AUD] in wages. The agency’s Locals Know campaign.6% last year and is predicted to grow in 2010. No Life” program.8 Billion US. The pound lost ground against the US dollar over the year as a whole. xii A recent informal study conducted by the CTC through Twitter indicates that over 60% of 735 persons surveyed view Canada as their next vacation.000 Canadians vacationing in Canada. Mahon Jones & Associates is a consulting firm specializing in providing advice to governments. Low cost carriers also benefitted from this cost-consciousness .ix United Kingdom – Euromonitor International shows a decline of almost 12% in outbound tourism.7 million room nights in 2009. many moving from 4 to 3-star accommodations or choosing packaged holidays that offer more control over expenditures because all costs are included in the price.mahonjones.66 billion in tourism export revenues for the Canadian economy in 2009. government agency or business visit our website at www. launched in June 2009 has resulted In 200. The report also notes that British travellers were value-conscious in 2009. non-profit associations. For more information about our services or to discuss how we can add value to your organization.

Vancouver 21. UK travel and tourism industry in 2009 and outlook for 2010. May 4.S. Canada & Mexico 2010 US Census Bureau News. 2010 TravelMole. “Canadian Tourism Commission (CTC) Survey Says Canada Has It All”. Office of Travel & Tourism Industries. Gulfnews. April 20. comScore Releases March 2010 U. 2010 Chen Yang. April 30. Online Video Rankings. 2010. Press Release. “Driving Tourism Through Difficult Times”. 2010 Ray Van Eng (blog). ITA. Index of Consumer Confidence Document Highlights.S. Conference Board. April 19. i Peter Apps. May 4. Preliminary U. attributing it to MJA. Citizen Air Traffic Overseas Regions. May 6. 2010 CTC. Tourism looks to bounce back. Insights April 2010 Consumer Confidence Survey Press Release. Advance Monthly Sales For Retail Trade And Food 2010 ComScore. Volcano market impact moves far beyond airlines. March 2010 Peter Yesawich. Feel free to circulate. May 6. “Travel industry bears up well despite tough economic times”. Press Release. News Release. April 2010 ii iii iv v vi vii viii ix Saifur Rahman. 2010 Air Canada Reports April Traffic. 2010 Canadian Conference Board. April 27. 2010 x xi xii xiii Page 4 of 4 .This report is the intellectual property of Mahon Jones & Associates. April 29. Reuters.

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