1. Cross-Border Passenger Services and Tourism” Canada-United States Transportation Border Working Group (TBWG) Plenary Meeting Winnipeg, MB “Cross-Border Passenger Services and Tourism” Christopher Jones Tourism Industry Association of Canada October 28, 2009

2. About the Tourism Industry Association of Canada (TIAC)  TIAC is the leading national private sector advocate for the tourism industry.  Founded in 1930 and based in Ottawa, TIAC represents the interests of Canadian tourism businesses nation-wide, taking action on their behalf and promoting positive measures that help the industry grow and prosper.  TIAC is the voice of Canadian tourism, representing all facets of the industry.

3. Cross-Border Travel  83% of Canada’s inbound international travelers are American  Top 5 American states of origin for overnight trips to Canada, in descending order, are: New York, Michigan, Washington, California, Ohio  Inbound travel from the U.S. fell 12% between 2007- 2008, and 8.1% between July 2008 and July 2009  Since 2000, inbound travel from the U.S. has fallen 48.6%, from 44 million person-trips to 22.6 million in 2008

4. Cross-Border Travel cont.  Number of same day visits by automobile declined 24.6% between July 2008 and July 2009, and 18.5% between 2007-2008  Number of overnight visits by automobile fell 2.8% between July 2008 and July 2009, and 7.5% between 2007-2008  In the last year, numbers of Americans entering Canada by motorcoach have fallen 23.8%; and by train, boat and other modes by 5.2%

5. Cross-Border Travel cont.  Spending by American travelers in Canada has fallen to 1.7 billion in Q2 2009, down 8.6% from the previous year and to the lowest level in over 12 years  Travel deficit with the U.S. is -$9 billion (2008)  Canada remains the U.S.’ largest inbound market for visitors  Near parity of Can-U.S. currencies will likely incent more Canadians to head south  Traditional Canadian border destinations suffering e.g. Niagara, Windsor, Victoria

6. Various Reasons for the Decline  Post 9/11, increased security and vigilance has led to higher transaction costs and longer wait times at border  Traveler documentation confusion along with increasing costs for enrollment and participation in WHTI-compliant identification programs  “Buy American” policies  Near parity of Canadian currency – days of 63¢ $ over  Gas prices – volatile but rising steadily in the long run  Steep discounting by U.S. hoteliers, destinations and cruise lines, and emergence of exotic, new & cheaper destinations have drawn Americans elsewhere

7. Remedies: Preclearance for Land and Marine Modes  Implement rail, bus and ferry passenger preclearance or onboard clearance through use of advanced passenger manifest information  U.S. customs pre-clearance is used at 8 Cdn airports  Current rail service frequency and corridor expansion in both countries makes this an opportune time  Implement inland inspection for commercial trucking to improve overall flow at our border crossings  Would eliminate congestion and unnecessary wait times, making travel experiences more efficient and predictable

8. Remedies: Improved Traveler Information and Peak Period Staffing  Installation of a state-of-the-art travel information system measuring wait times will enable efficient allocation of border resources  Staffing models should respond to peak period commercial and leisure traffic patterns in order to decrease wait times  Wait times and other information, such as alternate routing and location of rest stops, should be communicated to travelers  We await the recommendations of the bi-national Border Wait Time Working Group in this regard

9. Remedies: Traveler Identification Documents  Lower passport possession rates in the U.S. mean additional WHTI-compliant travel documents are needed  Increase availability of Enhanced Driver’s Licences, Enhanced Identification Cards and PASS cards (U.S.)  Broader and more universal acceptance of trusted travel documents is needed among the general populace and across all modes of transport  The NEXUS card is not accepted by Canadian authorities as a stand alone document in non-NEXUS lanes or at secondary inspection points  Communicate rules about children and youth better  Uncertainty has constrained family travel  Publicity campaign needed

10. Remedies: RFID Technology  Radio Frequency Identification (RFID) accesses and transmits to border officers information embedded in chips on trusted traveller documents  Enhances screening of travelers and reduces delays and wait times at major border crossings  RFID is more efficient and is being used at 34 land crossings in the U.S., representing 95% of U.S. border traffic  Canada should also look to adopt vicinity reader technology

11. Conclusion  Border has “thickened” to the mutual detriment of Canadian and U.S. tourism industries  Canada sideswiped by U.S. efforts to appease security hawks and domestic interests in U.S. South West  Regrettable, given two countries share common language, strong family ties, and deep levels of economic integration  Investments in new infrastructure, new pre- and inland-clearance models, staffing and technology would help matters