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Growing An Industry

Tourism

Performance

Building on the interest and momentum created by the Cabot 500 Celebrations in 1997, the tourism sector experienced a solid performance in 1998. Increased tourism awareness, the depreciated Canadian dollar, and favourable summer weather were key factors behind last year's performance. Non-resident tourists, who account for between 35-40% of industry expenditures, grew by an estimated 0.7% over 1997. Several categories that are targeted for growth and development within the industry continued to post gains--tour bus passengers (9%), air charter passengers (11.6%) and St. John's cruise ship passengers (1%).

Growth in Tourism Exports

The past twelve years have witnessed steady growth in the non-resident tourist segment, which is the export component of tourism. Between 1987 and 1998, the number of non-resident tourists grew by an annual average rate of 2.5%. This is the result of many factors including heightened awareness due in part to the major event promotional strategy, improvements to service, and an increase in the number and quality of attractions.

Tourism's Contribution

Travel and tourism expenditures, resident and non-resident combined, amount to more than $500 million per year. This spending supports an estimated 2,400 businesses in the Province.

Service and Infrastructure Enhancements

Major investments continue to be made in the tourism sector to ensure that the attractions and services provided deliver a quality experience. Modern facilities such as the recently opened Canada Games Center in Corner Brook and the new Civic Center under construction in St. John's will deliver many new high-yield conventions to the Province. The West Coast of Newfoundland has long been recognized as a hotbed of tourism activity. Recently, plans were announced to build a $10 million four season resort facility near Deer Lake at the crossroads of the Viking Trail and the Trans Canada Highway. Inherent in the design are four star accommodation amenities and services.

In line with the goals and motivational guidance provided by the Accommodation Rating Program, the number of high quality accommodations has risen steadily since its inception just seven short years ago. In particular, the number of four star facilities has taken a dramatic jump since the start of the program; between 1992 and 1998 the number of establishments boasting superior quality services grew from 2 to 10. Further improvements to transportation services for tourists are underway. The St. John's International Airport Authority is currently planning a $36 million improvement to the terminal and supporting services--work is slated to begin this Spring.

Canada Winter Games

Winter tourism on the West Coast received a major boost this year as Corner Brook and surrounding area hosted the Canada Winter Games. Over 3,200 athletes, coaches and managers participated in the event as well as more than 6,500 volunteers. Box office ticket sales exceeded expectations while merchandise sales (Games memorabilia) set a new record. In addition to the immediate benefits of the Games for local businesses such as hotels and restaurants, the celebrations have instilled many long-term benefits including new facilities and invaluable publicity. The Sports Network (TSN)/Réseau des Sports (RDS) was host broadcaster for the Games broadcasting over 50 hours of coverage over the two week period to sports enthusiasts across Canada. The Province claimed 19 medals (a new record) and the Jack Pelech award for displaying the most sportsmanship and spirit.