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TOURISM, TRAVEL & ECONOMY in the aftermath of September 11, 2001 (Part A)

1. Selected news clipping from Tourism Highlights (Canadian Tourism Commission) (below)
   

Go to the Tourism pages Part B or Part C - or return to the Main Page

Banner outside motel in Flagstaff, Arizona, USA

Selected News Clipping from Tourism Highlights (Canadian Tourism Commission)

Tourism Highlights/Points saillants touristiques 15-21 September/septembre 2001

DOWNTURN IN JAPANESE TRAVEL IN WAKE OF TERRORISTS ATTACK In wake of the terrorists attacks in America this week, it is predicted that Japan's dedicated but risk-shy travelers, are likely to avoid the United States for the next while. Last year the U.S. was Japan's most popular destination. Many Japanese may decide not to leave Japan at all, providing a much-needed boost to both domestic travel and general consumption as the economy struggles on the verge of recession. A record 17.82 million Japanese traveled overseas in 2000. Of those, some 5.07 million went to the United States or its territories, which include the wildly popular tropical islands of Guam and Saipan and the wedding favourite Hawaii. Reuters English News Service, 13 September 2001

CRUISE LINES AFFECTED BY TERRORISTS ATTACKS Cruise lines are busy trying to convince wary travelers not to cancel their trips. Most cruise operators are refusing refunds and credits to people who are booked to start their trips after the 18th of September although refunds have been given to those who could not get to their cruise ships because flight cancellations last week. As well, security is already much more strict on cruises with increased waterside surveillance, security perimeters around ships, and luggage examination. Passengers boarding cruise ships can expect lengthy delays, both entering and leaving ships, as carry-on bags and identification are examined closely. The Wall Street Journal, 17 September 2001

STATEMENT FROM THE TRAVEL INDUSTRY ASSOCIATION OF AMERICA The horrific terrorist attacks on the World Trade Center and Pentagon have seriously eroded consumer confidence in the safety and security of travel. A plan of action has been developed to enable our industry and government to work together to ensure that travel is safe while rebuilding consumer confidence in traveling to and within the United States.
OBJECTIVE 1: ENSURING THAT TRAVEL IS SAFE AND SECURE
OBJECTIVE 2: REBUILDING CONFIDENCE AMONG TRAVELERS
The President and other national leaders have issued a poignant call for a return to the highest possible level of "normalcy". The message for our travel industry is clear: our nation cannot allow a group of terrorists to restrict America's freedom to travel. While we will long experience the shock, disbelief and anguish over the senseless murder of thousands of innocent people, we will remain conscious and respectful of the great tragedy wrought upon our collective spirit, our great nation and its people. We must move on. (For the full statement go to the TIA website at: http://www.tia.org/Pubs/TIAResponse.asp
Travel Industry Association, 21 September 2001

WORLD TOURISM ORGANIZATION PREDICTS EFFECTS OF TERRORISM ATTACKS Despite the terrible blow struck by terrorist in New York and Washington last week, officials of the World Tourism Organization are predict that the industry will recover quickly. WTO Secretary-General Francesco Frangialli sent a message of sympathy and solidarity to the United States following the attacks, then flew to a meeting of tourism ministers from 11 CIS nations in Bishkek, Kyrgyzstan, where a declaration strongly condemning terrorism was adopted. WTO delegates will discuss how the events in the United States will affect world tourism at their meeting in late September but WTO analysts agree that the true impact will be hard to determine. Mr. Frangialli says three main factors are currently wreaking havoc on the tourism industry: lack of consumer confidence in the safety of air travel; uncertainty about the near future; and weakening of the global economy in recent months. World Tourism Organization, Press Release, 17 September 2001

THAI TOURISM INDUSTRY Thailand's tourism industry has decided to shift its focus to Japan and Eastern Europe to offset possible losses from the U.S. market after terrorists attacks last week. The annual international tour trade fair, Thailand Travel Mart, which opened on Sunday had twenty-nine tourism-related groups from U.S., Canada, Australia and New Zealand cancel their attendance due to the attacks. However, the Tourism Authority of Thailand (TAT) invited another 56 tour operators to compensate for the absence of North American and Oceanian buyers. Thailand feels that the number of tourist arrivals could fall by 20 percent in the last five months of this year if global tensions are prolonged. Xinhua News Agency, 18 September 2001

CANADIAN TOURISM INDUSTRY IN THE WAKE OF TERRORISM Canada's tourism industry is trying to adjust to fears over travel, steep cuts in service and other effects of last week's terrorist attacks on the United States. Canada's $54-billion tourism industry will feel an impact as travel by air will be increasingly difficult and expensive as the airline industry tries to make up for the huge loss of business from the past week and for the newly imposed security costs. Some analysts say Canada could benefit by attracting more foreign visitors who will opt to vacation here because of worries over the tensions in the U.S. The Ottawa Citizen, 18 September 2001

TRAVEL STOCKS SLUMP THE FIRST DAY OF TRADING Online travel agencies and travel technology firms were among the hardest hit as trading resumed Monday for the first time since last week's attacks. Among the worst declines were Sabre and Travelocity. Sabre generates about 89% of revenue from travel distribution fees, based on the number of travel segments booked, and from its online agency, Travelocity, causing concern among investors. As the leading online agency with a sales-growth rate of 30-50%, however, Travelocity should be in a good position to bounce back once demand for air travel rebounds. Expedia shares declined $12.25, or 34%, to $24. USA Networks is also experiencing fallout from last week's tragic events; shares of the media company fell 20%. Expedia reported that data from Sept. 12-16 showed travelers booking at levels that were between 35-40% of the levels for the same days in the prior week. On Sept. 17, bookings were running at approximately 45% of the levels for the same day in the prior week. These figures do not include cancellations. WebTravelNews, 17 September 2001

AIRLINES SUFFERING Within the travel industry, commercial airlines will be hardest hit. Already the groundings this past week of all airplanes has pushed some into financial ruin or into massive layoffs. Midway Airlines announced that it would lay off its 1,700 employees and cease operations. As for the other airlines, initial estimates show that AMR, the largest airline company, UAL Corp.'s United Airlines and other U.S. carriers now stand to lose a combined $4.4 billion this year and as much as $400 million next year. The International Air Transport Association (IATA) estimates that airlines face $10 billion in immediate revenue losses and extra costs in the aftermath of the attacks. WebTravelNews, 14 September 2001

FINANCIAL CRISIS FOR AIRLINES WORLDWIDE Since all American flights were grounded after the disaster of September 11th, the airlines have lost about $650m. The losses continue because, although the airlines are now flying, they are half-empty. When flights resumed this week, bookings were down about 70% in America. Airlines are cutting jobs to recoup their losses. On September 19th, United and American Airlines each announced cuts of 20,000 jobs. BA announced job cuts of 5,200 on top of an earlier 1,800. Virgin Atlantic has announced 1,200 job losses and grounded five aircraft. On September 18th the American airline industry held talks with the administration about a package of cash, loan guarantees and tax cuts, worth a total of $24 billion. The Economist, 22 September 2001

SURVEY BY ASIC, PEPPERIDGE & BROWN SAYS TRAVELERS WILL NOT CHANGE THEIR PLANS A survey by ASIC, Pepperidge & Brown indicated that nearly two-thirds of American travelers, both business and leisure, say their travel plans will not be deterred by the events in New York and Washington on September 11. Sixty seven percent of business travelers surveyed said the events on September 11 are not likely to influence their plans for future business trips. The comparable number for leisure travelers was slightly lower at 63%. Some highlights:
- I will cancel a domestic trip ---- Business 38% ---- Leisure 35%
- I will take fewer international trips ---- Business 52% ---- Leisure 60%
- I will drive, rather than fly, whenever I can ---- Business 55% ---- Leisure 68%
- Destinations to which travelers would not travel on a trip: ---- New York, 30%; ---- Middle East 33%
The survey was undertaken only hours after the terrorist attacks in New York and Washington.
Asic, Pepperidge & Brown, Press Release, 14 September 2001

MANY FRENCH TRAVELLERS CANCEL PLANS The Syndicat National des Agents de Voyages (SNAV) travel association has reported that French travellers made almost 11,000 cancellations after the attacks on the US. About half of those cancellations concerned bookings made for the US and Canada for the upcoming month. . Of other destinations, Tunisia is the worst hit with 1,800 cancellations, followed by Egypt with 1,200 cancellations, Turkey with 600 and Morocco with 500. US specialists were especially hard hit with Vacances Air Transat alone having 2,000 cancellations. The level of bookings in general was much lower, and almost no-one was going to New York. AFX News, 19 September 2001

CANADIAN TOURISM FACING POSSIBLE DOWNTURN Canada's tourism industry is bracing for its worst downturn since the 1991 Gulf War but could possibly benefit from the country's reputation as a safe destination, especially for Americans who would now much rather drive than fly. Investors surmise that travelers will now shun the skies and vacation closer to home. Canadian tourism officials said the public's fear of flying could result in more road trips to North American resorts, including Canadian locations, which may be deemed safer than their U.S. counterparts. Reuters English News Service, 19 September 2001

IRISH FEAR EFFECT OF TERRORISM ON OVERSEAS VISITS Officials at the Irish Tourist Board are saying that it is too early to assess the extent of the damage done to tourism by the suicide attacks on New York and Washington, but warned they could be far-reaching. Irish tourism chiefs are braced for a significant fall in overseas visitors which could outstrip the impact of the Gulf War a decade ago. The biggest concern is that North American visitors, a mainstay of Irish tourism, will stay away, as they did in 1991 during the Gulf conflict. The losses in revenue for the Irish tourism industry are potentially greater now, with the number of North American visitors to Ireland breaking the one million barrier for the first time last year. Last year, visitors from the United States and Canada between them spent 557 million Irish pounds ($655 million) during their stay. Reuters English News Service, 19 September 2001

HOTEL ONLINE SPECIAL REPORT Though it is too early to assess the extent of the impact of the terrorist attacks on the travel industry, travel experts are in agreement that the recent terrorist act will have at least a short-term (4-6 months) negative impact on the travel industry. This short-term impact may be exacerbated by psychological factors (lingering shock effects, fear of flying, uncertainty, etc), how the "war on terrorism" proceeds and how the economy performs over the next several quarters. The travel industry may recover or sink in a long-term down cycle. HotelOnline, Special Report, 19 September 2001

WHITE HOUSE OFFERS US AIRLINES $15 BILLION Congress and the White House agreed to support the US airline industry with $15 billion in the aftermath of last week's terrorist attacks that have threatened the survival of some airlines. The package includes $5 billion in direct grants to the airlines to compensate them for the losses suffered after the Sept. 11 attacks. Airlines were grounded for several days and have since had to cut back schedules by 20 per cent or more because of the declining number of air travellers. The government will also provide the airlines with loan guarantees of $10 billion. The Canadian Press, 21 September 2001

Tourism Highlights/Points saillants touristiques 22-28 September/septembre 2001 ---

HOTELS PLANNING TO LAY OFF STAFF Monday's Wall Street Journal reported that hotel executives and hospitality labor unions are preparing for an unprecedented wave of layoffs in the wake of the Sept. 11 terror attacks. Union and industry officials are seeking a broad government-relief package as they predict that one-quarter to one-half of the members of the Hotel Employees and Restaurant Employees International Union are likely to be laid off from their jobs in coming weeks. The union has 265,000 members and U.S. hotels employ about 1.5 million workers and restaurants employ many times that number. Dow Jones Business News, 24 September 2001

AMERICAN OUTBOUND TO CHINA DECREASES Many Americans are cancelling visits to the mainland China as a result of the terrorist attacks on New York and Washington. The United States is China's fourth-largest source of tourists, after Japan, South Korea and Russia with nearly 500,000 Americans visiting China in the first half of this year. China Travel Service said about 20 American package tours to China had been cancelled since the attacks. South China Morning Post, 25 September 2001

CANADA RECEIVED MANY REROUTED AIRPLANES Canada received hundreds of redirected airplanes during last weeks crisis in the states. Eastern Canada accepted more than 120 U.S. bound planes. Approximately 40 airplanes went to Gander, Newfoundland while dozens more went to St. John's, Newfoundland; Moncton, New Brunswick; Toronto, Montreal, Vancouver and even Whitehorse in the Yukon Territories. Inbound, 15 September 2001, p. 2

BUSINESS TRAVEL IN THE STATES FALTERS According to a survey released by the Business Travel Coalition, many U.S. firms see the attacks decreasing corporate travel for the near future. The survey asked travel and purchasing managers at about 130 companies if the believed corporate travel would drop off significantly by January 2002 compared to a year earlier. About 85 percent said they are allowing travel but with qualifications, while six percent of firms are advising against travel for the immediate future and six percent have banned travel until further notice. While some firms expect travel to bounce back to its normal levels, the survey found about 56 percent of U.S. companies believe business travel will only return to about 80 percent of previous levels by January 2002. About 19 percent of firms think business travel will return to normal or could even increase by January 2002. Reuters, 24 September 2001

SOME AIRLINES WILL FAIL This month's terrorist attacks are expected to ground some of the best-known names in air travel and leave some Canadian communities without service. More than 100,000 layoffs and massive government bailouts likely won't be enough to save the industry, experts say. As many as half of the top 10 U.S. airlines could disappear in their current form including US Airways Group Inc., Continental Airlines Corp., Northwest Airlines Corp., and America West Airlines Inc. The assumption is that only three or four U.S. national carriers, probably American Airlines Inc., United Airlines Inc., and Delta Air Lines Inc. will be able to afford to stay in business. The new environment may not result in the loss of any Canadian carriers and there is growing speculation, that Air Canada may have to file for bankruptcy protection in order to restructure its debt, even if it gets some of the aid it has requested from Ottawa. As a condition of its acquisition of Canadian Airlines two years ago, Air Canada promised to maintain service to small communities until the end of 2002 but Ottawa is expected to revisit this condition in light of the current crisis. The Globe and Mail, 25 September 2001, p. B13

INDIAN, THAILAND TOURISM AFFECTED Amitabh Kant, a senior official in the Indian tourism ministry, says the attacks of September 11th will have "an immense impact" on India's peak tourism season between October and February. Cancellations were already around 35 percent until December and new reservations were thin, he said. Thailand, which has two tourism promotion offices in the United States, one of which was in the World Trade Centre, has decided to concentrate on marketing in the Asian region in coming months. Officials from countries often affected by militant attacks, such as Sri Lanka and Turkey, were not so concerned by the crisis. The city of Istanbul had suffered about 20 percent cancellations, mainly by American tourists, but seaside resorts in Turkey had been"little affected". Agence France-Presse, 26 September 2001

BUSINESS AND CONVENTION TRAVEL SLOW DOWN Canadian tourism officials are bracing for a slowdown of business travel as shrinking airline service means meetings and conventions will cost more and likely have fewer delegates. In the two weeks since the Sept. 11 terrorist attacks in the United States, smaller meetings were cancelled in many Canadian cities while larger conventions attracted fewer visitors than expected. Whistler, B.C., lost a 500-strong meeting of the Production Engine Remanufacturing Association last weekend because air service was not available. The Brewers Association of Canada bowed out of an international meeting scheduled to take place in Halifax in the fall of 2002 because of the attacks. The Globe and Mail, 26 September 2001, p. A8

CAR RENTAL INDUSTRY The decline in airline travel since the terrorist attacks has affected the car rental industry in North America and could affect the auto makers if rental companies cancel orders for new vehicles. Some rental operators in Canada have begun cutting hours at some operations, trimming staff, delaying new vehicle deliveries and accelerating sales of their existing vehicles. Orders for 2002 model year cars and trucks have not been cancelled but it is a possibility. Analysts estimate that auto makers sell as many as 1.5 million vehicles annually to rental companies. Airport rentals are down 20 per cent to 25 per cent since Sept. 11. The Globe and Mail, 28 September 2001

Tourism Highlights/Points saillants touristiques 29 septembre-05 octobre 2001 ---

CANADIAN SURVEY SHOWS 40-60% DECLINE IN TRAVEL The Association of Canadian Travel Agents (ACTA) says as many as 8,000 jobs will be cut in travel agencies across the country if the industry doesn't show strong signs of recovery within 90 days. The industry employs 30,000 people and ACTA anticipates 20 per cent of the workforce will be lost it the industry doesn't recover in the next three months. A survey done by ACTA last week showed that agencies are experiencing revenue shortfalls of 40 to 60 per cent in the wake of the terrorist attacks. The Edmonton Journal, 3 October 2001, p. G1

$160 MILLION IN EMERGENCY AID FOR CANADIAN AIRLINES The Canadian federal government announced yesterday that they will give $160 million in emergency aid for airlines. However, they refused to fund buyout packages for thousands of employees facing layoffs. The infusion of $160 million will compensate Air Canada, Canada 3000, Air Transat and the country's regional carriers for their losses when airports were temporarily shut down after the Sept. 11 terrorist attacks. The Ottawa Citizen, 3 October 2001

FEAR OF BANKRUPTCY GROUNDS SOME TRAVELLERS Since September 11, the fear of airline bankruptcy is keeping some travellers at home. This is one more fear to add to those cancelling or postponing trips because of fear of flying, fear of spending in an uncertain economy and fear of being stranded by war or more terrorist attacks. Yesterday, Swissair grounded flights worldwide and Sabena vowed to keep flying despite the threat of imminent bankruptcy. People who plan to travel are asking how to protect themselves from ending up with worthless travel documents, should their suppliers go under. Standard travel insurance won't help because bankruptcies aren't on the list. The Globe and Mail, 3 October 2001, p. A5

TIA PREDICTS THAT TRAVEL WILL BE FLAT IN 2002 A forecast released today by the Travel Industry Association of America (TIA) indicates that domestic U.S. travel in the fourth quarter of 2001 will drop significantly. TIA also expects that travel will remain soft in the first half of 2002 before returning to year 2001 levels later in the year. The Air Transport Association expects that total revenue passenger miles will be down 39 percent in the fourth quarter. Corporate and convention travel which had already been weaker than leisure travel prior to September 11 were particularly hard hit by the terrorist attacks occurring as they did in the peak season for conventions and business travel. While recovery could be slower for this segment of travel, there are indications that some conventions cancelled are being re-booked. Travel Industry Association of America, Press Release, 2 October 2001

TIA POLL SAYS AMERICANS WILL CONTINUE TO TRAVEL Nearly 70% of all travelers who had made plans before the attacks say they have not changed their travel plans, according to a Travel Industry Association of America (TIA) survey conducted just after the attacks. According to a special TIA survey of 1,000 U.S. adults conducted mid-September, 39 percent of Americans had plans to take a leisure trip within the next three months prior to the attacks (78 million) and 69% of them or 54 million say they have made no changes to their travel plans. In comparison, only 12 percent (9.4 million) reported canceling one or more of their leisure trips and 8 percent (6.3 million) rescheduled one or more trips to a later date. Another 11 percent said they changed their travel plans in some other way. Travel Industry Association of America, Press Release, 2 October 2001

AIRLINES LOSE BILLIONS OF DOLLARS Merrill Lynch & Co. issued a report Tuesday projecting the airline industry will see much greater losses this year and next than previously expected. Major airlines as a group will lose $6.5 billion in 2001, compared with the previous forecast of a $2.2 billion loss. Merrill Lynch & Co. expects the group will lose $3.5 billion in 2002, compared with the previous forecast of $500 million. They also predict that the recent 20% cut in airline capacity won't be enough if traffic remains at current levels, off 40% to 50% from last year. Dow Jones News Service, 2 October 2001

TOURISM MEXICO PLANS MARKETING STRATEGY The tourism ministry of Mexico announced yesterday a relief and marketing package for the country's tourism industry which has been strongly affected by the terrorist attacks in the US. The 10-point package includes a $35m increase in advertising to promote travel by car between the US and Mexico and to promote travel to Mexico from Europe, Canada and Latin America. Domestic tourism will also be promoted. The ministry is also suggesting tax breaks for foreign groups and conventions as well as the reimbursement of the 15 per cent value added tax on purchases made by foreign tourists in Mexico. Financial Times (U.K. edition), 2 October 2001

WORLD TOURISM ORGANIZATION'S 14TH GENERAL ASSEMBLY, OSAKA A unified and defiant global tourism sector emerged from the meetings of the World Tourism Organization's 14th General Assembly and the Millennium Conference of Tourism Leaders, which concluded in Osaka, Japan. Talk of the current crisis facing the industry in the wake of the terrorist attacks in the United States dominated the meetings, which were hosted first in the Republic of Korea and then in Japan as a test event in the run up to the 2002 World Cup football championships. The General Assembly, which began on September 23rd in Seoul, was attended by some 700 delegates representing 118 countries, including 56 ministers or secretaries of state with the rank of minister. Delegates were quick to condemn the attacks and the negative consequences they are having on tourism worldwide. World Tourism Organization, Press Release, 1 October 2001

BRITISH TOURISM HIT HARD The British Tourist Association has said that the U.K.'s inbound tourism industry stands to lose around GBP2.5 billion this year from the combined effects of foot and mouth disease and the recent terrorist attacks in the U.S. Average spending by visitors to the U.K., which was originally forecast at more than GBP13 billion for 2001, is likely to drop to about GBP10.8 billion. The BTA expects terrorist attacks alone to account for a loss of up to GBP900 million. Last year, 25.2 million people visited the U.K., spending a total of GBP12.8 billion.. Dow Jones International News, 26 September 2001

US TRAVEL INDUSTRY LAUNCHES ADVERTISING CAMPAIGN The US travel industry will launch a $US10 million ($20.6 million) advertising campaign next week to try to revive the sector. Airlines have been battered by the terrorist attacks on New York and Washington, which threaten to cost them up to $US11 billion globally. The Travel Industry Association, which represents America's $US585 billion travel and tourism sector, begins a print advertising campaign in major newspapers next week. ``America was founded, expanded and made great by travellers,'' the TIA's full-page advertisement reads. ``And nobody can take that away from us. Not now. Not ever.'' Australian Financial Review, 28 September 2001

EFFECT ON ASIAN TOURISM The sharp slowdown in tourism following the Sept. 11 terrorist attacks in the U.S. is expected to reverberate far beyond the struggling travel industries. Smaller, economically fragile countries are more vulnerable to the decrease in tourism than larger nations, and are expected to suffer more. In Thailand, for instance, net travel receipts is equal to 50% of the Thai current-account surplus. In Malaysia, net receipts were 31% of the current-account surplus, while in Indonesia they accounted for 22% of the surplus and in the Philippines just over 14%. The Hong Kong Hotels Association expects occupancy rates at hotels in the city to stay at 78% for the rest of the year, down from 82% in 2000. The Australian Tourism Export Council projected this week that foreign tourism spending in the country will fall A$470 million (US$230.3 million) through the end of the year. Asian Wall Street Journal, 1 October 2001

INTERNET TRAVEL SITE AFFECTED Internet travel sites were left reeling from a sharp drop-off in demand for plane tickets, hotel rooms and other travel services in the wake of the Sept. 11 terrorist attacks. Online travel booking sites like Expedia, Travelocity, Orbitz and Priceline are suffering along with the rest of the travel industry. Already Orbitz, which is funded by five major airlines, has laid off 13 of its 170 staff members and is cutting costs including marketing expenses by as much as 50 percent for the rest of the year. Lowestfare.com has laid off 460 call centre employees who handled airline reservations and ticketing. And BizTravel.com shut down altogether last week. The Ottawa Citizen, 1 October 2001, p. D4

Tourism Highlights/Points saillants touristiques,6-12 October/octobre 2001

CANADIAN SNOWBIRDS NOT CANCELLING Despite this week's anti-terrorist strikes in Afghanistan, Canadian snowbirds are not rushing to cancel their southern winter holidays in America. The Canadian Snowbirds Association (CSA), which provides services for 100,000 members, receives many calls from Canadians asking if the CSA thinks it's safe for them to travel to the states. But most won't let recent events stop them from seeing travelling south. Before Sunday's attacks on terrorist sites in Afghanistan, there were only 20 cancellations from about 14,000 long-term travel insurance policies at Medipac International, which handles contracts and claims for the association's members. New Brunswick Telegraph Journal, 10 October 2001

VANCOUVER WILL LOSE $800 MILLION The downturn in the tourist industry will drain an estimated $800
million out of the Greater Vancouver economy over the next three months. Rick Antonson, president/CEO of Tourism Vancouver, said that the industry will not see millions of its expected revenue over the last four months of the year. Antonson said the city will not meet its goal of 8.6 million overnight visitors and could fall short by up to 900,000 visitors by year-end. Early predictions show an estimated 35- to 50% drop in the vital and lucrative U.S. visitor market, a 25- to 40% decrease out of the international market and a 10- to 25% decrease in Canadian visitors. The Vancouver Province, 5 October 2001, p. A4

TRAVEL AMERICA NOW ACT - The Travel Industry Association of America (TIA) has endorsed the Travel
America Now Act that would quickly stimulate travel in the U.S. following the terrorist attacks on September 11. The bill contains provisions that would create incentives for travel and by helping to provide cash flow to struggling tourism businesses. Provisions of the Travel America Now Act include:
-Temporary restoration of full deductibility for all business entertainment expenses, including meals, that are now subject to a 50 percent limitation;
-A temporary tax credit of $500 per person ($1,000 for a couple filing jointly) for personal travel expenses for travel originating in and within the United States. This is for travel conducted or paid for through 12/31/01.
-A temporary extension of the "carry back" provision so that losses by travel businesses can be offset by previous years' profit. Currently this look-back is two years, and this legislation would expand that to five years.
Travel Industry Association of America, Press Release, 5 October 2001

TRAVELLERS RELY ON AGENTS MORE AFTER CRISIS - A survey by the American Automobile Association of America (AAA) indicates that seven out of ten adult leisure travellers say they will rely as much or more on the advice of travel agents than they did before the events of September 11. Seventy-six percent of survey respondents said that given the current travel environment they are just as likely or more likely to seek the services of full-service travel agents. Among those planning to take a trip by airplane in the next 12 months, 84 percent of those surveyed said they would be just as likely or more likely to consult a travel agent. - AAA New Release, 11 October 2001

THE EFFECT OF THE GULF WAR ON AIR TRAVEL - The Gulf War was ten years ago now, but in light of the events of September 11th, there is a renewed interest in what the impact was on U.S. air travel during that time. International air travel plummeted during the actual shooting war but was minimally affected during the huge troop buildup throughout the late summer, fall and early winter before the shooting war began. Domestic traffic was less seriously affected throughout the entire crisis, however, the numbers of passenger revenue miles and passengers on domestic flights did decrease in February. The Gulf War and the events of September 11 cannot be compared but when the Gulf War stopped, travellers quickly got back on flights. Load factors on U.S. carriers' overseas flights fell from levels of 64% and 61% in December 1990 and January 1991 to just under 50% in February 1991-a 22% drop. But, after the defeat of Iraqi troops early in March, load factors on U.S. international flights were back up to just under 60% in March and 67% in April. - WebTravelNews, 19 September 2001

AND FINALLY... A northwestern B.C. airline says it has purchased "the Hugger" to restrain passengers overcome by air rage. The device is designed to be slipped around the upper body of an aggressive passenger. Straps are then tightened to restrict the passenger's movements. Cost - $460 Cdn. Times Colonist, The (Victoria), 4 October 2001, p. E8

Tourism Highlights/Points saillants touristiques, 13-19 Oct/oct 2001

INCREASED SECURITY WILL COST TRAVELLERS - A top industry official has said that travellers will have to pay more to fly if the bill for an "exponential" rise in airport and airline security costs since last month's terrorist attacks isn't covered by axes. Airport policing costs alone have tripled since the September11 attacks in the United States and some insurance costs have risen 500 per cent. Other added costs include screening new employees, training on new equipment and time-consuming passenger security checks. Ottawa will pay the estimated $1-million to $2-million tab to put armed marshals on Air Canada flights to Washington's Reagan National Airport and last week the federal government announced it would pay out $91 million for new airport and border security gear, including bomb sniffers and fingerprint scanners that should be running by early spring. The Air Transport Security Corporation usually pays for such equipment but it's airlines that pay airport security personnel. - The Vancouver Sun, 17 October 2001, p. D9

FOODSERVICE SALES DECREASE IN ECONOMIC TURNDOWN - According to a forecast by the Canadian Restaurant and Foodservices Association (CRFA) the economic aftershocks of the September 11th terrorist attacks will result in almost zero growth in 2002. Sales at Canada's 64,000 restaurants, bars and caterers are expected to be almost flat next year with 0.3% nominal growth, down sharply from an earlier forecast of 3.8%. The CRFA forecast is the worst since 1991, when the recession and the introduction of the GST on restaurant meals caused a 7.5% drop in commercial foodservice sales. The CRFA says that establishments that rely on tourism and business travel are feeling the slowdown right now, but in the coming year most foodservice operators will be affected by the slowing economy. - Canada NewsWire, 15 October 2001

TRAIN TRAVEL MORE POPULAR SINCE SEPTEMBER 11TH - Since the September 11th attacks, there has been a clear increase in the number of people travelling by train. After the first week, VIA Rail announced there had been 40 per cent more passengers in central Canada and 70 per cent more in Atlantic Canada. At the train station in Ottawa last night, a number of travellers said that the attacks were at least a contributing factor in their decision to use rail. Senior ticket agent Robert Bourque said he has not seen autumn business this strong in a decade. - The Ottawa Citizen, 15 October 2001, p. A6

AMERICAN HOTEL INDUSTRY HURTING - The hotel industry in the United States is feeling the effect of the downturn in tourism and travel with revenue per room falling as much as 24% in September from a year earlier, according to preliminary numbers from Smith Travel Research and occupancy fell 15% to 17%. Upscale hotels, which include the Four Seasons and Ritz-Carlton chains and which usually cater to business travellers, suffered the biggest decline, as revenue per room fell as much as 39%. Economy hotel chains such as Days Inn and Motel 6 held up the best, with a decline in revenue per room of 10%. Hotels in the 25 largest markets, which include New York, Boston and San Francisco, reported worse results than smaller markets because hotels in big cities get more of their customers from air travel. - National Post, 12 October 2001, p. FP1

PHOCUSWRIGHT ONLINE TRAVEL FORECASTS REVISED DOWNWARD - PhoCusWright has revised its forecasts from those originally published in May 2001. New forecast assumptions include the following:

• The online travel market will hit 88% of forecast in 2001, 84% in 2002 and 85% in 2003.
• Online agencies' ability to diversify to cruise, vacation and hotel products will keep them growing at faster rates than airline and hotel Web sites.
• Even though airlines have begun to advertise low rates to boost traffic again, Web site sales will be significantly below original forecasts for the fourth quarter.
• Hotel Web sites will be the slowest sector to recover because of increased competition from discount online travel agencies.
• The impact will not be as severe on car rental and vacation/cruise Web sites as on hotel Web sites, but those segments will also see a downtown due to travel declines in general.
• Online travel will make up 15% of the travel business in 2002, not 14% as originally forecasted.
  - WebTravelNews, 17 October 2001

FEWER SOUTH AMERICANS VISITING THE US - Fewer Latin Americans will travel to Florida and the United States this winter but not only because of fear of travelling but because the terrorist attacks but because the American dollar is now very expensive. In its recently revised traveler forecast, the Travel Industry Association of America estimated that South American arrivals to the United States would fall 11 per cent in 2001 from last year. After Canada and the United Kingdom, Latin America is Florida's top tourist source, and Argentina, Brazil and Venezuela are the region's top tourist feeders. Miami-Dade County received 3.4 million Latin Americans last year or 34 per cent of the county's total visitation. - The Miami Herald, 17 October 2001

JAPANESE AVOIDING UNITED STATES - A telephone survey conducted September 21-22 of 204 consumers in Tokyo, Nagoya and Osaka by the JTB Foundation found that 78.6% cited the U.S. Mainland as a destination to avoid. Some 35.2% said they would avoid Europe while 30.3% said they would stay away from Hawaii. - Travel Journal International, 8 October 2001, p. 1, 2

TOURISM WILL RECOVER BY END OF 2002 : TIA - According to the U.S. Department of Commerce, travel and tourism industries will begin to recover from their current slump by the end of 2002. Long-term forecasts suggest the key category of international travel to the U.S. will grow by 12% between 2000 and 2005 despite a projected 13% slump this year. Contrasting with the government's long-term outlook, economic analysis firm DRI-WEFA said travelers in the U.S. will spend $76.7 billion less during the 16 months after September 11th as a result of last month's suicide highjackings. DRI-WEFA says travel and tourism job losses "could easily approach two million.". - Dow Jones International News, 15 October 2001

TRAVEL IN AND FROM EUROPE DOWN - In Europe, bookings at high-class hotels are down dramatically and tens of thousands of jobs are threatened on a continent that earned $230 billion from tourism last year, 49 percent of the global total. Even before the terrorist attacks, growth was slowing to 2.0 to 3.0 percent in 2001 from 4.5 percent in 2000. In Italy, 16,000 jobs are expected to be lost just in the short term. Travel from America is down 25 percent and from Japan 15 percent. Half the 24 million U.S. tourists who vacationed abroad last year came to Europe, bringing $65 billion. Britain, the top European destination for Americans last year with four million U.S. visitors, estimated last month that the inbound tourist industry stood to lose 2.5 billion pounds ($3.7 billion) this year alone because of the attacks and the hoof and mouth epidemic. A spokesman at the German association of small travel agencies said some 3,000 holidays were being cancelled in Germany a day. The French are also cancelling almost 75 per cent of their trips to the United States and Canada and 35 per cent of their holidays to Egypt and North Africa. Greece, where tourism accounts for some 7.0 percent of GDP, has seen a fall of one fifth in tourist arrivals in Athens but bookings for island holidays are up over last year as travellers switch plans to visit destinations they perceive as less risky. - Reuters English News Service, 18 October 2001

Tourism Highlights/Points saillants touristiques 20-26 Oct./oct. 2001

SURGE IN VISITORS FROM THE U.S. TO CANADA EXPECTED - U.S.-based agents and tour operators told Canadian tourism officials during a recent meeting in Chicago that vacation travel from the U.S. to Canada will probably surge in response to the Sept. 11 terrorism attacks. On hand were 35 executives of the travel industry from both countries, including Patrick Gedge, senior vice president of sales and marketing for the Canadian Tourism Commission (CTC). As a result of the Chicago meeting, the CTC will appropriate about $950,000 (U.S.) in supplementary funds for short-term co-op advertising on behalf of U.S. agents and operators. TWCrossroads.com, 19 October 2001

OECD PREDICTS TOURISM WILL BOUNCE BACK - Tourism and travel experts meeting at the Paris-based Organization for Economic Development and Cooperation (OECD) indicated that the short-term economic forecast was not good following the Sept. 11 strikes in the United States but that business would bounce back. The short-term slump in tourism and travel has hit the United States, Canada and Mexico the hardest. Tourism and transportation revenues initially slumped during the Gulf War a decade ago but later recovered. The OECD pointed to the U.S. Commerce Department predictions that tourism would grow by the second half of next year. Comtex, 26 October 2001

ASIAN CONFERENCE BUSINESS DROPS - Asia's multibillion-dollar conference and exhibition business is showing the effects of the terrorist attacks on America. About 80% of conferences booked at Hyatt International Corp.'s Bali Hyatt in November have been canceled in recent weeks. In Singapore, 24,000 hotel-room nights were left empty after the Society for Worldwide Interbank Financial Telecommunication called off a five-day industry exhibition just one week before the start date. Starwood Hotels & Resorts Worldwide Inc.'s Sheraton Nusa Indah Resort in Bali lost half a million dollars in revenue when the World Bridge Championship pulled the plug, leaving a gaping hole of 2,700 room nights. Asian Wall Street Journal, 22 October 2001

ILO ESTIMATES 9 MILLION TOURISM JOB LOSS - The International Labor Organization (ILO) has reported that the September 11th terrorist attacks on the United States have severely damaged the global hotel and tourism sector and could result in the loss of nearly 9 million jobs worldwide. They also say, that if there are no further terrorist outbreaks in the United States, the military action against the Taliban regime succeeds in its aims, and there are no further outbreaks elsewhere in the world, the situation in the industry would stabilize and pick up quite rapidly. The World Travel and Tourism Council anticipates 1.1 million of the job losses to take place in the United States and 1.2 million in the 15 countries of the European Union. The ILO expects the job losses in the United States to be "much higher" than the Council estimates, while job losses in Europe to be less than predicted. ILO economists report a 30-40 percent drop in travel demands in the United States after last month's terror attacks. Comtex, 25 October 2001

SOUTH KOREA TOURISM - The number of foreign visitors to South Korea recorded its largest drop in six years last month in the aftermath of the September 11 terrorist attacks on the United States. According to the Culture and Tourism Ministry and the Korea National Tourism Organization (KNTO) Tuesday, the number of inbound foreign tourists in September totaled 421,080, down 8.4 per cent from the same period last year, the largest monthly decrease since October 1995. The decrease in the number of tourists from the United States (down 25.8 per cent) and Canada (down 8.3 per cent) was particularly significant, while the number of Japanese tourists fell 12.5 per cent. Asia Pulse, 23 October 2001

US / CANADA BORDERS STILL ON HIGH ALERT - Before September 11th, there were few problems or holdups for Americans crossing the borders to Canada or Mexico on vacation. In the aftermath of the terrorist attacks on the United States, North America's borders have tightened up security as officials try to keep out terrorists and prevent future attacks. All 301 ports of entry along the northern and southern borders have been on highest alert, and are expected to remain at that level for some time. With 350,000 vehicles and millions of passengers entering the United States every day, imposing all the new security measures stretched out the inspection of each vehicle and added time to a border crossing. By all accounts, travelers are finding it harder and slower to get across the border. In Canada, officials say traffic at some border crossings has dropped 50 per cent and, as a result, tourism has been badly battered. Winnipeg Free Press, 20 October 2001, p. C4

Tourism Highlights/Points saillants touristiques 27 Oct/oct - 2 Nov/nov 2001

US TOURISM POLICY COUNCIL The Travel Industry Association of America (TIA) has reactivated the Tourism Policy Council (TPC), which met today for the first time since 1997. Chaired by U.S. Secretary of Commerce Donald Evans, the meeting was convened to address the continuing impact of September 11th on the American travel and tourism industry. The TPC's mandate is to share information and coordinate activities related to travel and tourism. The TPC is an interagency committee established by law to ensure that the nation's tourism interests are considered in federal decision-making. Its major function is to coordinate national policies and programs relating to travel and tourism, recreation, and national heritage resources that involve federal agencies. Travel Industry Association of America, Press Release, 29 October 2001

THOMAS COOK LAYS OFF 2,600 EMPLOYEES Thomas Cook AG of Europe said yesterday it would cut about 2,600 jobs and reduce its airline capacity by almost a quarter as booking demand fell after the Sept. 11 attacks. Cook Ag expects a 15% drop in sales in the firm's 2001/2002 business year, leading to a 530 million euro ($746-million) loss in core earnings that would be balanced by cost-cutting measures. The company will cut 10 percent of its 26,500 full-time employees in a bid to avoid an operating loss. It will also close around 100 travel agent offices. These cutbacks do not affect Cook's Canada offices. National Post, 27 October 2001, FP 2

N.A. AIRLINES SUFFER 30% DROP IN TRAFFIC The International Air Transport Association (IATA) reports that the North American airlines suffered a 30 per cent drop in passenger traffic in September as a result of terrorist attacks in the U.S. Worldwide, the number of passengers on international scheduled flights fell 17 per cent compared to September 2000. It was the biggest monthly drop since immediately following the Gulf War in 1991. The Vancouver Sun, 31 October 2001, p. D3

$1 BILLION LOSS FROM CANCELLED MEETINGS The events of Sept.11 and ensuing uncertainties caused widespread meeting cancellations representing an estimated impact of $1 billion or more in lost business in the U.S. and untold amounts globally for the meeting industry. But, according to a recent survey by the Meeting Professionals International (MPI) Foundation, beginning in November the number of meeting cancellations dramatically decreased. Smaller meetings made up the majority of cancellations with 44 per cent of planners specifying all cancellations equaled up to 100 room nights and 35 per cent saying they equaled 101 to 500 room nights. The remaining 21 per cent said cancelled room nights equaled 501 to 5,000 room nights. Business Wire, 29 October 2001

Tourism Highlights / Points saillants touristiques 3-9 Nov./nov. 2001

CTC LAUNCHING $20 MILLION CAMPAIGN The Canadian Tourism Commission (CTC) will be launching a $20-million campaign aimed at Americans and Canadians to get them traveling again in Canada. Jim Watson, president and CEO of the Canadian Tourism Commission, said Tuesday that television and newspapers ads extolling the virtues of travel in Canada will begin across the country on Nov. 14 and last into December. A second wave of ads will be run in February and March and include the United States. The move is designed to help reverse a dramatic loss in travel business since the Sept. 11 terrorist attacks in the United States. The Canadian Press, 6 November 2001

TRAVEL AGENTS LOSING BUSINESS According to a survey conducted last week by the American Society of Travel Agents (ASTA), since Sept 11th, business was about 41% of normal volume one month later and only 50% of normal almost two months later. Asked about the upcoming year, 10% expect to merge with another agency, 8% percent expect to close and another 8% hope to sell their businesses. More than one-third will reduce the number of full- time employees while growing numbers anticipate using outside sales contractors. Half plan to cut general overhead and travel and entertainment budgets, and 41% will reduce advertising and promotion. ASTA Press Release, 6 November 2001

TIA SURVEY The latest Travel Confidence Survey taken by the Travel Industry Association of America (TIA) since the September 11 attacks shows a slight increase in travel intentions by Americans for the next six months (November 2001 to April 2002). Sixty-two percent of Americans now plan on taking at least one leisure trip in the next six months, up from 58 percent in the first two surveys. The telephone survey was conducted November 2-4 among a representative sampling of 1,000 U.S. adults and is third in a series of consumer polls. TIA Press Release, 7 November 2001

SPA FIGURES SHOOT UPWARDS According to Spa Finder (www.spafinder.com), a spa travel company in the U.S., since September the number of spa travelers and those requesting information about spa vacations has increased dramatically. More travelers are requesting itineraries that don't involve flying. This has given a huge boost to spas within driving distance of major metropolitan areas. PR Newswire, 8 November 2001

FEWER VISITORS TO BRITAIN The British office for national statistics has announced that since the terrorist attacks the number of overseas visitors coming to Britain has declined dramatically. Visits by people from North America were 17% lower in September compared to a year before. Visits by Europeans were down by 6%. Trips by British people going to North America were 21% lower, but this was partly offset by an increase in visits to Europe. Trips to Iceland, Cyprus and South Africa also increased. The figures showed the number of visitors in September was almost 250,000 down from a year before. The Guardian, 8 November 2001

CROSS BORDER TRAFFIC LOW The terrorist attacks of September 11 have strongly affected the economy of the border towns that depended on easy cross-border travel between the states and Canada. Now, tight security and long waits at the borders are causing cross-border workers to quit their jobs and stores and restaurants that counted on Americans taking advantage of the weak Canadian dollar are hurting badly. Border retail stores report sales down as much as 50%. Windsor Casino has laid off 762 employees and more than a dozen of the 1,600 Canadian nurses in Detroit-area hospitals have quit. Business Week, 12 November 2001

Tourism Highlights/Points saillants touristiques 10-16 Nov/nov 2001

CANADA'S RESPONSE TO THE TOURISM SLOWDOWN Travel marketers have been forced to rethink their strategies in response to the sharp tourism slowdown after Sept. 11. Fairmont announced new winter-season packages for its hotels across the country, including ski-stay deals at the Banff Springs starting at $393 a night and at Chateau Frontenac for $315. Tourism Quebec is running TV commercials in New York, Boston and Washington, D.C., featuring images of the province and a Celine Dion voice-over of her hit, "Let's Talk About Love". British Columbia is planning to launch a campaign early next month chasing the get-away business in Washington state and Alberta. Two- to five-night packages in Vancouver, Victoria and Whistler will be offered combining hotel accommodation with ski passes, an attraction or event. Travel Alberta has decided to push reduced prices and has also hired former World Cup skier Ken Read to talk about Alberta tourism across Canada. Ontario is nearly doubling the amount of money it spends on domestic and U.S. tourism marketing, to a total of $14 million. The Canadian Press, 12 November 2001

CANADIAN TOURISM COMMISSION'S $20 MILLION AD CAMPAIGN The federal government announced yesterday the details of a $20-million advertising campaign designed to convince Canadians it is still safe to travel. Figures made public yesterday by the Canadian Tourism Commission indicated that there has been a 41 percent drop in transborder traffic in September from the previous year. Domestic travel dropped by 17 percent in September and still remains 17 percent below last year in October. According to the tourism agency, 35 percent of U.S. companies have changed their travel policies since Sept. 11. Of those businesses, 52 percent have restricted employees to essential travel. Another survey indicates 13.4 percent of Canadians who were planning winter travel now will not leave the country. Canadian major urban markets reported 500,000 hotel room cancellations in September and 266,000 in October. Canada's restaurants and bars are preparing for their worst year in a decade. The Ottawa Citizen, 15 November 2001, p. D11

MORE HOLIDAYS WOULD REVITALIZE TRAVEL MARKET A report on terrorism and its impact on travel by Tourism Intelligence International, urges the private-sector and government to provide more paid holidays for Americans as an extraordinary measure to increase travel since September 11th. Government incentives such as tax breaks should also be applied equally to international as well as domestic travel, the report said. The report also viewed the airline industry's future as polarized between large global players, involving extensive alliances, and low-cost niche players, adding that Sept. 11 may have hastened that future. www.twcrossroads.com <http://www.twcrossroads.com>, 15 November 2001

TIA RELEASES FORECAST FOR TRAVEL VOLUME AND SPENDING According to the Travel Industry Association of America's (TIA) latest forecast, total domestic travel volume by Americans will decrease 3.5 percent in 2001 to 962.3 million person-trips. Domestic traveler expenditures are expected to decline twice as much in 2001, falling 7 percent below 2000, for a loss of $33.7 billion. Total inbound arrivals for 2001 are projected to decline nearly 13 percent and international traveler spending will decrease 11.2 percent, for a loss of $9.2 billion in 2001. In total, nearly $43 billion in spending by domestic and international travelers is expected to be lost during 2001. In 2002, total domestic travel volume and travel expenditures will both show a slight increase from the low level of 2001, but will still remain $27.4 billion below 2000. Although visits and spending by international travelers will increase faster than domestic travelers in 2002, they won't reach 2000's record levels until 2003. In the fourth quarter of 2001, TIA is forecasting a 12 percent decrease in business travel and a 9 percent drop in pleasure travel, compared to the same period in 2000. For full-year 2001, business travel will decrease 6.5 percent and pleasure travel will fall 3.4 percent from 2000. For the entire fourth quarter of 2001, air travel is projected to decline 25 percent and is expected to be down 9.4 percent overall for full-year 2001. Travel by car is expected to be down 2 percent for the fourth quarter and down 1.5 percent for full-year 2001. Total domestic and international travel-generated employment is expected to show a dramatic decline in 2001. According to TIA, 453,500 jobs directly related to travel and tourism will be lost this year, down 5.6 percent from 2000. An additional 74,000 jobs will be cut in 2002 for a two-year total of 527,400 jobs lost from 2000 levels. Travel Industry Association, Press Release, 13 November 2001

ADVENTURE TRAVELERS RESILIENT According to a survey in the December issue of Outside, an adventure magazine, American adventure travelers seem determined to continue to travel. In the days that followed the 9/11 terrorist attacks, the American Society of Travel Agents was reporting reservation cancellation rates as high as 50%. However the Outside survey indicates cancellations in the aftermath of the attacks as a comparatively low 10%. Outside asked leading adventure outfitters to gauge the state of the industry and overall, the high retention rate of adventure trips indicated a quick return to normal for the industry. Outside reports that adventure travel is poised to continue the steady 6% per annum growth the market has seen for the last three years. Only the destinations have changed, not the desire. PR Newswire,15 November 2001

Tourism Highlights/Points saillants touristiques 17-23 Nov/nov 2001

US THANKSGIVING HOLIDAY TRAVEL The Automobile Association of America predicted 34.6 million people would travel at least 50 miles from home during the Thanksgiving holiday, a 6% decline from last year. A record 87% were expected to drive, largely due to a decrease in air travel. Some travelers shifted from airlines to rails. Laidlaw Inc.'s (T.LDM) Greyhound Bus Lines reports a 20% surge in advance-purchase tickets for the Thanksgiving period and an increase in trips longer than 1,000 miles. Chicago Aviation Department officials expected 198,000 people to use O'Hare and about 1.2 million people were expected to use O'Hare and Midway airports by Sunday night. Both numbers were down about 20% from last year. Dow Jones International News, 21 November 2001

AUSTRALIA'S TOURISM INDUSTRY OUTLOOK SINCE SEPT. 11 Since the Sept. 11 terrorist attacks, the number of short-term visitors to Australia fell 2.7%, the largest monthly drop since May 1982. As well, the collapse of the country's second-largest airline, Ansett, has significantly curtailed domestic travel. Qantas has said it will cut all flights to New York and reduce its flights to Rome, Johannesburg, Bangkok, Manila and Buenos Aires. Qantas also said it would cut staff by up to 2,000. Australia's hotels are also reporting occupancy rates at half their normal level since Sept. 11. Visitors from the U.S. in October this year, at 29,800, were down about 25% from the same time last year. However, the first 10 months of 2001, 3.95 million short-term visitors arrived in Australia, up 0.7% from the year-earlier period. In particular, visitors from China, at 143,000 over the ten-month period, are up 47% from a year ago. Dow Jones International News Service, 21 November 2001

NEW TRAVEL SURVEY OF BUSINESS TRAVELLERS According to the results of a national business travel survey issued by Yesawich, Pepperdine & Brown, nearly one in five business travelers now say their future business travel plans will be affected by the terrorist attacks of September 11th. Of those who have changed their business plans, many are still traveling, but driving instead of flying. Among business travelers who said their business travel plans would continue to be affected by the terrorist events, nearly seven out of 10 said they would drive rather than fly whenever they could and more than half said they would take fewer international business trips, and six out of 10 said they would not travel to specific destinations such as New York (46%), the Middle East (23%) or Washington, D.C. (23%). Among business travelers who indicated they would cancel or take fewer business trips in the future, 29 percent said they would do so because they believed it was "not safe to fly," yet only 16 percent said that air travel is now "too big of a hassle" and 13 percent said their company had "restricted air travel because of concerns about the economy. Hotel Online Special Report, 20 November 2001

Canadian Tourism Commision - Tourism Highlights/Points saillantstouristiques 24-30 Nov/nov 2001

TRAVELOCITY.COM POLL According to a recent online poll by Travelocity, the same number of travelers are planning holiday trips this December as they did in 2000. More travelers indicated they would be traveling via air and venturing overseas this holiday, compared to 2000, oddly enough. For the survey, 1,100 Travelocity members were asked to compare their current December holiday travel plans to those of last year. Almost 83 % said that their plans to travel have not changed as a result of recent events. More than 72% of people planning to travel are flying in 2001, compared to 65 % last year. PR Newswire, 27 November 2001

IATA PREDICTS THAT BUSINESS TRAVEL WILL BOUNCE BACK The new report from the International Air Transport Association (IATA) called, Corporate Air Travel Survey for 2001, indicates that business travel is going to bounce back. The only question is when. In the report, only 3 % of international business travellers think things will never return to the way they were before Sept. 11. By contrast, 57 % expect normality to return within six month, 26 % within 12 months and 14 % in two years or more. Canadian business travellers accounted for 7.2 per cent of the sample size. Globe & Mail, 28 November 2001, p.T5

TIA's TRAVELER SENTIMENT INDEX IMPROVES IN FOURTH QUARTER 2001 Despite the drop in travel since September 11, the Travel Industry Association of America's (TIA) latest Traveler Sentiment Index (TSI) improved slightly in the fourth quarter of 2001.This was driven mainly by an extremely large gain in consumer perceptions of the affordability of travel, as well as improved perceptions about service quality. This rise in the affordability index may be attributed to increased travel promotion and discounted prices as many travel companies attempt to recover from the current economic slowdown. The TSI survey was conducted October 12-22, 2001.
Travel Industry Association of America, Press Release, 27 November 2001

EUROPEAN TOURISM POST SEPTEMBER 11TH According to a recent European Union (EU) report, tourism to Europe from the U.S., Japan and the Middle East has dropped an estimated 30% since Sept. 11. Cruises and business and incentive travel, which are heavily dependent on Americans, were hit particularly hard. Car rental companies expect to lose one-third of anticipated business through year's end, and hotel occupancy in major European cities dropped 20% to 30%. Transatlantic traffic in October was off 30.1% for British Airways, 33.4% for United and 42.4% for American Airlines, according to the European Travel Commission (ETC) in New York, while overall capacity dipped by 20% to 25%. However, impact on internal EU travel remains minimal in that Spain and Portugal, for example, remain popular with European tourists. <http://www.twcrossroads.com/> 27 November 2001

INTERNATIONAL TRAVEL NUMBERS TO CANADA - SEPTEMBER 2001 The impact of the tragedies in the United States has taken its toll on international travel to Canada whose numbers have plummeted by a sharp 19.3% in September 2001, following nine consecutive monthly gains. Total overnight international travel to Canada declined 19.3% during the month of September 2001 compared to the same month in 2000. For the first nine months of 2001, international travel to Canada was up a modest 1.4% over 2000, reaching 16.5 million overnight tourists.

• Travel from the United States to Canada was mostly affected, declining by 18.2%. US overnight tourist entries were down significantly by 18.2% (-286,060 person-trips) on a year over year comparison. Auto travel was down 15.9% while non-auto travel declined by 21.8%. During the first nine months of 2001, US tourists to Canada were up 3.1% over the same period last year, reaching 13.0 million overnight trips. Overnight travel by car was up 4.9% over the period, while non-auto entries (mainly air travel) remained unchanged.

Overseas travel to Canada declined for the eight consecutive month; Asia and South America were mostly affected by September 11th. Overseas travel to Canada was down a significant 22.3% (-123,704 person-trips) in September 2001.

• Travel from Europe was down 18.1% while all major markets declined: U.K. (-11.2%); France (-22.9%); Germany (-25.0%) and the Netherlands (-14.5%).
  
• Asian travel was particularly hit hard, declining by 32.3%. With the exception of China (13.1%), Indonesia (65.5%) and the Philippines (45.6%), all other markets registered negative growth, where Japan (-50.2%) and Taiwan (-46.3%) registered the most significant declines.
  
• Travel from Oceania fell 12.4%, led by New Zealand (-18.2%), and
  
• Travel from South America was down 35.3% with both Mexico (-23.7%) and Brazil (-46.4%) declining.
  

For the first nine months of 2001, travel from overseas was down 4.6% (-166,049 person-trips), driven primarily by a decline of 32.3% from Asia. Among all the target markets, Mexico (+7.9%), China (+15.7%) was the only market to display growth. Canadian Tourism Commission, Research, 28 November 2001

Canadian Tourism Commision - Tourism Highlights/Points saillantstouristiques 15-21Dec/déc 2001

CANADIAN TOURISM INDUSTRY REBOUNDING Canadian Tourism Commission (CTC) President Jim Watson announced today that Canadian travel numbers are starting to move up again despite the September 11 attacks and a period of weaker economic activity. CTC research also raises the possibility that the winter 2001-2002 season may offer additional relief, as bookings for this season are up one per cent compared with last winter. According to seasonally adjusted international-travel estimates released by Statistics Canada, there are signs of a slight recovery in October, as compared with September of this year. Compared with August and September, October travel was down; but declines were not as serious as they were in September. In some areas, there were clear signs of recovery: 285,000 Americans flew to Canada for an overnight stay in October, up 16.5 per cent over September. "More people are making plans that involve less expensive getaways closer to home, opting instead for domestic flights and shorter-haul trips by car, bus or train. As a result, redirected demand in Canadian domestic and U.S. cross-border markets is emerging as a new opportunity for the industry in the short term," Watson said. Canadian Tourism Commission, Press Release, 18 December 2001

TIA FORECASTS WINTER TRAVEL TO DECLINE EIGHT PER CENT According to the latest seasonal forecast from the Travel Industry Association of America (TIA), travel by Americans will decrease 8.4 percent this winter (December, January, February). Americans are expected to take nearly 118 million person-trips during the winter 2001-2002 season, down from 128 million person-trips last winter. A person-trip is one person traveling 50 miles or more from home, one way. According to TIA's Winter 2001-2002 Travelometer, most winter travel (76%) will be for pleasure or personal reasons while 38 percent will be for business or conventions. One in five (18%) pleasure travelers claim they will travel more this winter than last, while 12 percent plan to travel less. The winter forecast also shows that while 14 percent of business travelers say they'll go on the road more this season, 15 percent say they expect to travel less. Roughly 70 percent of both pleasure and business travelers plan to travel the same amount this winter as last. Travel Industry Association of America, Press Release, 17 December 2001

MEXICO HAS WHAT AMERICAN TOURISTS WANT Across Mexico, hotel owners and government officials say tourism has largely returned to normal after dropping 12 per cent right after the Sept. 11 attacks. At the resort of Acapulco, more flights are arriving than before the attacks, including new arrivals from Chicago and Dallas. Mexico is one of the few countries to have seen such a recovery. Mexico appears to have a combination that is attractive to attacks-weary travelers: It's cheap, safe and - for U.S. residents - close to home. Facing a possible crisis in its third-largest source of revenue, Mexico launched its most aggressive tourism campaign ever after Sept. 11. It spent $35 million to promote mountain resorts and beach getaways in the United States, Mexico and Canada with the slogan "Mexico, closer than ever." Associated Press Newswires, 18 December 2001

INTERNATIONAL TRAVEL TO CANADA: OCTOBER 2001 The impact of the tragedies in the United States coupled with fragile economies has taken its toll on international travel to Canada in October 2001, declining for a second consecutive month by 13.1%. Total overnight international travel to Canada declined 13.1% during the month of October 2001 compared to the same month in 2000. For the first ten months of 2001, international travel to Canada was up a very modest 0.2% over 2000, reaching 17.5 million overnight tourists. Travel from the United States to Canada was less affected, declining by 9.1%. For the month of October 2001, US overnight tourist entries were down by 9.1% on a year over year comparison. Auto travel was down 9.3% while non-auto travel declined by 8.8%. During the first ten months of 2001, US tourists to Canada were up 2.2% over the same period last year, reaching 13.9 million overnight trips. Overnight travel by car was up 3.9% over the period, while non-auto entries (mainly air travel) declined by 0.7%. Overseas travel to Canada declined for the ninth consecutive month; Asia and South America were mostly affected post September 11th. Overseas travel to Canada was down a significant 25.1% in October 2001. Travel from Europe was down 17.8% while all major markets declined: U.K. (-11.0%); France (-17.1%); Germany (-18.4%) and the Netherlands (-18.9%). Coupled with fragile economies, Asian travel was particularly hit hard, declining by 38.4%. With the exception of Indonesia (25.9%) and the Philippines (29.1%), all other markets registered negative growth, where Japan (-56.6%) and Taiwan (-41.6%) registered the most significant declines. Travel from Oceania fell 23.2%, led by New Zealand (-23.7%), and travel from South America was down 41.1% with both Mexico (-14.9%) and Brazil (-55.5%) declining. For the first ten months of 2001, travel from overseas was down 6.3% (-251,148 person-trips), driven primarily by a decline of 7.8% from Asia. Among all the target markets, Mexico (+6.5%) and China (+14.0%) were the only markets to display growth. Canadian Tourism Commission, Market Research, 18 December 2001

Tourism Highlights/Points saillants touristiques, 12-18 Jan/jan 2002

CANADIAN TOURISM INDUSTRY IMPACTED BUT SHOW RESILIENCE Despite the severe impact of the September 11 events on travel, tourism industry showed mixed results in the third quarter of 2001, with tourism spending in Canada recording a decrease while the number of jobs generated by tourism increased marginally (0.5%). According to the National Tourism Indicators Quarterly Estimates Third Quarter 2001 released by Statistics Canada, although tourism injected almost $19.7 billion into the Canadian economy during that period, this amounted to a 0.1% (annual rate) decline, the first such decrease in 10 years. Gains in recreation (2.8%) and entertainment (2.4%) spending prevented a further drop in total spending, which was due mainly to decreased spending on passenger air transportation (- 3.3%) and accommodation (-3.1%). Statistics Canada notes that the overall reduction in spending during the third quarter is attributable to a decrease in non-resident expenditures in Canada during July-September 2001. Compared with the same period last year, foreign visitors spent $7.1 billion in Canada in the third quarter of 2001, an increase of 0.4%, while the number of foreign visitors registered an increase in July and August 2001, but then fell sharply (24%) in September 2001. Canadian Tourism Commission, Press Release, 17 January 2002

AUSTRALIA TOURISM BOUNCING BACK The 2000 Sydney Olympics garnered huge amounts of free publicity for Australia. More visitors landed in Australia during its Olympic year than ever before, among them a record 89,300 Canadians. The numbers for the first eight months of 2001 were even higher: up 8.2 % over 2000 for all visitors; an 18.2 % jump for Canadians. But after Sept. 11th, up to 15 per cent of bookings to Australia were cancelled. Also, would-be travellers were paralysed by fear and no one was making plans. September visits by Canadians dropped nearly 30% though October figures were only down 7 %. By November, the numbers were back to 2000 levels. The Canadian Press, 14 January 2002

MORE THAN TWO-THIRDS OF AMERICAN POPULATION SAW PRESIDENT BUSH TRAVEL RECOVERY AD A recent advertisement for the travel industry featuring President George W. Bush and travel industry employees was viewed by an incredible 70% of American consumers, according to research by the Travel Industry Association of America (TIA). That translates to 145 million U.S. adults. Equally important, more than half (55%) of the U.S. adult population accurately described the ad. President Bush appeared in his first-ever advertisement encouraging Americans to start traveling again and see America as part of a domestic and international advertising campaign organized under the banner of TIA. The spots began airing November 21, 2001 in the U.S. and internationally and ran for four consecutive weeks. The ads were part of a broad Travel Industry Recovery Campaign and were funded by voluntary contributions from every segment of the U.S. travel and tourism industry. Travel Industry Association of America, Press Release, 9 January 2002

Tourism Highlights/Points saillants touristiques 8-14Dec/déc 2001

BRITISH TOURISM REDUCED BY A THIRD Figures from the British Office for National Statistics (ONS) released Friday show that the foot-and-mouth disease epidemic and fear of flying in the wake of the Sept. 11 terrorist attacks on the United States have cut British tourism by nearly one-third this year. The Office reported 554,000 visitors arrived in Britain in October, down 31 per cent on the year and 30 per cent lower than September, which itself already had been affected by the hijacked airliner attacks on New York City and Washington. The ONS figures showed that in October, 103,000 tourists arrived from North America, down from the 169,000 in the month a year before. The statistics showed 272,000 visitors arrived in Britain from Western Europe, 103,000 fewer than in October 2000. Tourists from other parts of the world totaled 112,000 in October, down from 177,000 in the same month last year. Comtex, 7 December 2001

TRADE SHOWS THE ADDED PLUS IN BUSINESS TRAVEL According to the "Business Travel Survey" released today by eBrain Market Research, nearly a third of all surveyed business travelers place more importance on attending trade shows now than prior to September 11, 2001. The survey indicates that with concerns over the US economy and safety, more than a quarter of companies surveyed currently are looking for alternatives to reduce overall business travel yet two-thirds of respondents are still more likely to go on a business trip if it includes a relevant trade show. Newswire, 13 December 2001

AMERICAN EXPRESS CUTS 5,500 PLUS JOBS American Express will eliminate 5,500 to 6,500 more jobs at a cost of $240 million to $280 million (U.S.) in severance fees and other restructuring charges in the fourth quarter. Shares of American Express fell 84 cents yesterday to close at $33.42 on the New York Stock Exchange. The latest layoffs come on top of 7,700 cuts previously announced this year. A spokesperson said there was no immediate word on layoffs in Canada, where the company has about 3,500 workers including more than 2,000 in Markham. The latest cuts are taking place primarily in the travel businesses and reflect the sharp slowdown in that sector since Sept. 11, the company said in a statement. The Toronto Star, 13 December 2001

AMERICAN EXPRESS TRAVEL SERVICES SAYS VACATION BOOKINGS ON THE ISE American Express Travel Services says vacation bookings are on the rise and set to peak early in the New Year. This optimistic outlook comes from an increase in travel sales during November and early December. Leading Canadian tour operators like Signature Vacations confirm this travel trend. American Express surveyed its customers to better understand their attitudes and plans, and found an overwhelming 96% of respondents have not changed their intentions to travel this winter. Nine-in-10 said that vacation travel is an important part of their lives and will not be deterred by fears of another terrorist attack or airplane safety. However, one-quarter (25%) reported they pushed the timing of their trip until later in the season. Canada NewsWire, 13 December 2001

GAY AND LESBIAN TRAVEL POST SEPT. 11 A nationwide study of 2,053 adults surveyed online of whom 5% self-identified as gay, lesbian, bisexual or transgender (GLBT) indicates that gays and lesbians plan to travel more often in the coming months as compared to heterosexuals. In addition, in the aftermath of September 11, by a substantial margin, gays and lesbians say they plan to volunteer more than their non-gay counterparts. Notably, gay and non-gay respondents expressed similar, strong desires to socialize more with friends and family. Roughly one-third of each group stated they would socialize "more" or "much more" with their friends and family. Comtex, 10 December 2001

Tourism Highlights/Points saillants touristiques 19-25 Jan/jan 2001

TRAVEL INTENTIONS STILL AFFECTED BY SEPTEMBER 11TH According to the results of a new national survey of travel intentions by Yesawich, Pepperdine & Brown (YP&B) almost one in five (18%) travelers still say their future plans for leisure travel continue to be affected by the tragic events of September 11. The overall percentage of leisure travelers who agreed that the terrorist attacks were likely to influence their future travel plans showed only a slight decline from the level recorded in November (18% versus 22%). Among leisure travelers who indicated their travel plans have been influenced by the terrorist events and said they would cancel or take fewer trips, nearly twice as many stated they would not travel because they believed it was "not safe to fly." The percentage of respondents citing air safety concerns nearly doubled, from 23% to 45%, from a similar survey conducted by Yesawich, Pepperdine & Brown in November 2001. Travelers' concerns about the safety of air travel exceeded concerns about personal safety (19%) as well as concerns about the current condition of the United States economy (13%). Paralleling their concern about the safety of air travel, leisure travelers who said the terrorist incidents were likely to influence their future travel plans also indicated a preference for vacationing closer to home (59%), visiting friends and relatives (45%), vacationing at home (39%) and vacationing with children (35%). Hotel Online, 21 January 2002

TIA TRAVEL CONFIDENCE SURVEY The Travel Industry Association of America's (TIA) latest Travel Confidence Survey shows that 57 % of Americans plan to take a leisure trip during the first six months of 2002. For those not planning to travel, the economy and lack of time are still the primary reasons. In fact, travel safety issues were even less prominent in this survey, with 4 % of the population mentioning safety as a reason for not planning a leisure trip, versus 14 % last survey. These figures come from the fourth national Travel Confidence Survey conducted by TIA on December 11-12, 2001. This is also the first such survey sponsored by the Bureau of Transportation Statistics in the U.S. Department of Transportation as part of a new partnership with TIA. Factors that would motivate non-travelers to take a trip include a stronger economy (37%), hotel discounts/offers (33%), attractive discounts to travel within their home state (31%), and airline discounts (29%). Sixty-six % of business travelers say they expect to take at least one trip in the first half of the year. And 73 % of business travelers who went on the road in the first half of 2001 say they expect to travel just as much in the same period this year. TIA Press Release, 18 January 2002

Tourism Highlights/Points saillants touristiques 9-15 March/mars 2002

CANADA SPENDS - A survey by Visa Canada shows that Canadians are back in travel mode. For the last four months of 2001, after 9/11, Canadian spending on travel and entertainment decreased by $559 million from the comparable period a year earlier, but spending is back to normal levels now. From the survey: thirty-seven per cent of people polled said they are planning to increase their travel this year. Nineteen per cent said they would travel less. This was the first time Visa Canada asked about travel intentions so no comparisons can be made with previous years. The Toronto Star, 12 March 2002

NOVEMBER 2001 INTERNATIONAL ARRIVALS TO US - November 2001 international arrival figures to the US showed November travel to the country was still down 29 percent when compared to November 2000 arrivals, but this decline was far less than the record 34 percent decline registered in October. The difference between October 2001 and November 2001 in the major markets are shown below.
Canada - Oct down 24 percent - Nov down 21 percent
Mexico - Oct down 31 percent - Nov down 24 percent
Japan - Oct down 61 percent - Nov down 62 percent
UK - Oct down 21 percent - Nov down 25 percent
Germany - Oct down 44 percent - Nov down 36 percent
France - Oct down 28 percent - Nov down 14 percent
TINEWS, 14 March 2002

>>> Tourism Highlights are compiled weekly by the Tourism Reference and Documentation Centre (TRDC) of the Canadian Tourism Commission. For more information, contact the Reference Desk of the TRDC at : tel (613) 954-3943 fax (613) 954-3945 or e-mail trdc@ctc-cct.ca Tourism Highlights is also posted on CTX in the "Tourism News" section : www.canadatourism.com <<<<

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