Good morning. Thanks for having us.
I will be brief.
Adventure travel and ecotourism are emerging as two of the fastest-growing markets for tourism worldwide. The Yukon, like Canada, is uniquely positioned to capitalize on this current global travel trend. That said, our global competitors are continually increasing their marketing budgets to compete in an increasingly competitive workplace.
In order for Canada and the Yukon to achieve our potential as world-class travel destinations, we must also continually increase our marketing efforts to the world. Unfortunately, as the Canadian government's support of the Canadian Tourism Commission has weakened, so has Canada's market share in tourism around the globe. The CTC makes money for Canadians; it is not simply an expense-side entity. The return on Canada's investment in tourism in 2005 was a total of $15.3 billion in taxes for all levels of government, with $7.7 billion going specifically to the federal tax base.
In simple terms, investing in Canada's tourism industry makes sound economic sense. As such, TIAY is calling on the federal government to significantly increase its funding of the Canadian Tourism Commission, so that Canadian tourism businesses will be able to compete effectively and continue to provide significantly to Canada's tax base.
Secondly, we're asking the government specifically to reverse its decision to take back the $5.6 million that was saved during the recent relocation of the commission to Vancouver—funds that earlier had been determined to be made available for marketing purposes.
In the Yukon, tourism is the largest private sector employer and annually adds approximately $165 million to the Yukon's GDP. In fact for every dollar spent by the tourism department on marketing, over $37 is realized in visitor spending. Unfortunately, the combination of the strong Canadian dollar, high gas prices, and the western hemisphere travel initiative are all threatening this tremendous return on investment. Every advantage the Canadian travel industry has is desperately needed to ensure our competitiveness in the marketplace.
It is with this fact in mind that TIAY is asking the federal government to reverse the elimination of the GST visitor rebate program. The additional costs to our consumers, which this initiative will create, will once again ensure loss of market share, and of the corresponding federal and provincial taxes for all Canadians.
I want to thank you for the committee's time today. Yukon tourism operators appreciate the opportunity to express these concerns.