BANFF – A town hall run by provincial tourism agencies focused on the impact public health restrictions could have on the tourism industry and the push of agencies to work together in helping to support one another in the recovery phase after two years of the pandemic.
The Banff town hall launched the series that will see the Tourism Industry Association of Alberta (TIAA) and Travel Alberta visit 10 communities with stops up until the middle of May.
David Goldstein, the CEO of Travel Alberta, said in a speech to roughly 80 tourism operators in Banff Thursday (March 3) “there is light at the end of the tunnel” as the COVID-19 pandemic eases.
He said there’s still a way to go in the recovery phase, but the “sweet spot is in the U.S.”, particularly from Texas, California and New York markets.
However, with border restrictions still in place – especially with the busy summer tourism months upcoming – it’s still uncertain what numbers will end up coming to Alberta.
Darren Reeder, the board advisor for the TIAA, stressed the importance of the federal government providing more detailed science that backs up the strict border restrictions or easing the regulations like many other countries have done.
He highlighted how in 2020, the tourism industry in the province yielded about $4.7 billion after being at $8.2 billion before COVID-19. In 2021, that increased to $5.4 billion, but the bulk of tourism was from within the province.
Now with people looking to travel outside the Alberta borders and public health border restrictions among the most strict in the world, there’s growing concern on how it’ll impact tourism-related businesses.
“It’s critical,” Reeder said, praising how Albertans stayed and spent locally on tourism-related businesses and trips.
“Now Albertans are starting to get on planes and leave, so we have recovered as much as we're going to from the domestic market. We’ve historically made our money with the international traveller and this destination (the Bow Valley) is more proportionately reliant on tourism. … International travel is absolutely key to getting this industry back up on its feet. The restrictions are the biggest impediment. Planning a trip to Canada from the U.K. isn’t something you do in two weeks. You’re likely dreaming it up years in advance and planning six months to a year in advance.”
Reeder highlighted the industry needs a clear answer in the next four to six weeks without having it significantly impacting the busy tourism season of summer.
“Every day that goes by right now, we don’t have the certainty for a summer recovery. Two-thirds to three-quarters of tourism operators' revenue will be booked in the months of May to September. … The money made in the summer gives you the ability to manage cash flow in times of the year where the revenue just doesn't give you the ability to survive from one season to the next.
“It's entirely up in the air because we've been given no guidance by the federal government as to what the markers would be that would allow for the systematic removal of remaining restrictions. The mantra has been, ‘when the time is right.’ ‘When it's safe to do so’. We've heard this for two years, but that is not a science or data informed response. It's actually not a policy directive. We can't live with the politics of indecision.”
While no two communities are the same when it comes to tourism, Reeder said there’s an importance on it in local economies.
“There isn't a community in this province that doesn't in one-way, form or another touch tourism,” Reeder said. “People go buy a cup of coffee, go to the local movie theatre, go for dinner, go buy retail, they’re supporting the local economy.”
In the 2021 provincial budget, the UCP government set an ambitious goal of doubling tourism spending in Alberta to $20 billion annually by 2030. The aim is part of Alberta’s tourism recovery plan.
Of the existing money being spent on tourism, roughly half is done by Albertans, a quarter from Canadians elsewhere in the country and the final quarter by international visitors, Goldstein said.
He noted how parts of the province are at various stages of tourism development, but that there’s a “huge opportunity” to find their way into the sector.
He said the Bow Valley was hit the worst by the pandemic in relation to tourism, but because there’s a strong infrastructure, they’re likely to recover quicker than other areas
“They have the reputation. They have the global brand,” Goldstein said.
Travel Alberta also showcased the different funds that would be available such as $5 million for a growth program, $2 million for an innovation program and $500,000 for an accelerator program. A cooperative investment fund will have $2.5 million, a community investment fund $5.5 million, Indigenous Tourism Alberta $1.25 million and $7.5 million for product investment.
Goldstein added a focus on reaching specific tourists has already been taking place and with locals to Alberta beginning to travel again, it has a greater emphasis on bringing back the international market.
“Albertans are going to start to travel again, but we’re at a stage where we started our campaigns in the U.S. before the border reopened. It was a little controversial. We had to explain that we had to raise awareness before people actually book elsewhere.
“It’s not a strategy for 350 million Americans. There are 10 million travelling to Canada and we need to get two million. We need to find them. We need to know what they’re reading, what they’re thinking about, what they’re searching and get into the booking phase.”
