Resorts report drop in bookings

An annual survey of Northwestern Ontario resource-based tourism businesses, conducted in April, asked them to report changes in 2008 bookings and changes in gross revenue for 2007.
Key findings of the survey, conducted by the Northwestern Ontario Tourism Association (NWOTA) and Kenora District Camp Owners Association (KDCA), included:
•79.6 percent of lodges reported lower bookings for 2008 over 2007;
•overall 2008 bookings are down 15.82 percent;
•for the 2007 year, gross income was down an average of 8.97 percent over 2006; and
•operators named border issues, fuel costs, exchange rates, the U.S. economy, and poor government policy as the reasons for the industries current strife.
“2006 and 2007 actual and expected sales losses will result in the elimination of 2,300 direct and indirect jobs throughout Northwestern Ontario,” said NWOTA president Jerry Fisher.
“Unlike manufacturing closures, tourism jobs disappear one a time, week by week,” he noted. “The cumulative effect of these losses will decimate the already crippled economy of the region.”
Tourism is vital to the economy of Northwestern Ontario. In Sunset Country alone, tourism employed (directly and indirectly) nearly 10,000 individuals and was recorded as contributing $451 million to the region’s economy (2001 PKF Economic Impact Study).
More than half-a-million tourists traditionally visit Sunset Country annually, with 97.5 percent from the U.S.
“There are many obstacles, like the U.S. economy and exchange rates, that we understand the government cannot affect,” said KDCA president Harald Lohn.
“However, we require thoughtful investments in infrastructure and marketing to help us stay afloat during what is fast becoming a very difficult business climate,” he stressed.
While revenues are shrinking in Northwestern Ontario, businesses in northeastern Minnesota who share identical markets have experienced double-digit growth.
Since 2000, tourists heading north are opting to end their trip in Minnesota.
Minnesota’s spending on aggressive marketing, as well as investments in quality highways, roadside stops, and attractions, coupled with concerns about the border, is yielding rewards for U.S. communities at the expense of their poorer Canadian cousins.
NWOTA and the KDCA represent tourism advocacy throughout Northwestern Ontario. As active lobby groups, they address critical issues facing the tourism industry and the economy of Northwestern Ontario.
Full survey findings can be found at www.nwota.com under the studies and information tab.