Thank you, Mr. Chair. I appreciate the opportunity to speak with you today.
First, let me thank the committee for the opportunity to appear before you today to help situate the tourism sector within your investigation of trade relations between Canada and the United States.
As with many other sectors, the U.S. is Canadian tourism's biggest trading partner. With more than 80% of non-resident travel to Canada coming from the United States, the ongoing vitality of our tourism sector depends on overnight and same-day visits from our American neighbours. However, we are continuing to see some very concerning numbers with regard to the softening of this key market. To begin with, the overall number of Americans visiting Canada has slid precipitously in recent years, falling by 41% since 2000. Visitors from the United States made 5.2 million overnight trips to Canada during the third quarter of 2008. This is the lowest third-quarter level since records were first kept in 1972. In that same quarter, travel was down from all of the top U.S. states of origin, while spending by U.S. visitors stood at $2.8 billion, down 8.4% over the same quarter in the previous year.
Those are a lot of numbers, but what do they mean? I can tell you, from my discussions with our members across the country, those numbers mean a great deal to their bottom line and to their future.
For the tourism businesses in your cities, towns, and communities, those numbers mean fewer bookings, fewer patrons, and less stability. They mean that those from the traditional pool of travellers who used to make trips across the border are either not coming to Canada or are staying for shorter periods. They mean that small and medium-sized enterprises--the lifeblood of the Canadian tourism sector, if not the entire economy--are forced to do more with less to remain competitive. They mean they are unable to enhance their services or invest capital to improve their businesses. And sometimes they mean holding off on hiring, or in some circumstances cutting back on staff.
There are a number of factors that contribute to these declines, and while some of them may be beyond our control, this only underscores the need for us to take action where we can to help facilitate the process of crossing our border for our valued American customers.
With this in mind, I will speak today to two key issues for the tourism sector: the state of Canada's border infrastructure and technology, and the looming impact of the western hemisphere travel initiative, WHTI, at land crossings and seaports. As I speak to those two issues, let me take a moment to recognize some of the recent investments in these two areas.
The budget of 2009 promised $12 billion over two years for roads, bridges, and border crossings. Earlier in 2008 the government announced the allocation of $14 million over two years to expand the NEXUS program for high-frequency low-risk border-crossers, and $6 million over two years to support provinces and territories planning to introduce enhanced drivers licences. These are important steps towards addressing the issues of our borders, but there remain a number of key issues that still need immediate attention.
Overall, increased hassle at the border has resulted in the perception of a border that is becoming progressively more difficult and expensive for travellers to cross. Peak period wait times frustrate and sometimes deter potential visitors, and trusted traveller programs, such as NEXUS, often lack the necessary dedicated lane or inspection infrastructure.
Canada's tourism sector understands that in this day and age it is an absolute necessity to have a robust system of security at our land crossings. However, the thickening of the border over the past eight years must be reversed without compromising security interests if we are to encourage the free flow of residents between our two countries.
So what can we do to address these issues? First and foremost, the Government of Canada needs to make the necessary investments in physical and technological infrastructure at our borders. This includes improvements in new construction at border inspection plazas, dedicated lane infrastructure for individuals holding trusted traveller documents that are WHTI-compliant, remote document scanning technology, RFID readers, electronic traveller and congestion information to steer travellers to the least busy land-border ports of entry or rest stops to avoid lineups.
Beyond these improvements to the infrastructure, we need to see a greater commitment on the part of the agencies that oversee the borders to make them efficient, effective, and welcoming to travellers. This includes increases in peak period staffing and 24/7 border services at all major crossings and a new welcome-to-Canada policy for border guards. These officers are the first people that U.S. travellers see on a trip to Canada, and their demeanour leaves a lasting impression on our valued customers.
Of course, all of these issues at our borders will become a stark reality when the western hemisphere travel initiative comes into force at land crossings and seaports of entry on June 2. Announced in 2005, WHTI requires all travellers to present a valid passport or other approved security document when entering the U.S. WHTI has been in effect for air travel since January 2007. The effects on air travellers were always viewed as minimal, given that most air passengers were far more likely to hold passports.
But the larger question for those of us in the Canadian tourism sector, which depends greatly on the short-stay American traveller, is will there be a critical mass of WHTI-compliant documentation in circulation before June 1, 2009, for land and sea border crossings. The last figures that we have are not promising. Just 28% of Americans currently hold a passport, as compared to 53% of Canadians. There are 700,000 Americans who currently hold a passcard. The NEXUS card is currently held by 300,000 Canadians and Americans. Enhanced drivers licences have been put forth over the past few years as a viable option, and we have seen several American states and Canadian provinces move forward on offering these as an option for a secure document. However, adoption rates for these drivers licences, incorporating proof of citizenship, have been modest at best to this point.
Ultimately, this is where we stand, 90 days away from the introduction of these more stringent border policies and at the beginning of our summer peak travel season. Although the recession may dampen American demand for travel, the potential for border problems is a real concern for Canada's tourism sector as we approach this crucial travel period.
What we urgently need at this time is a more extensive and fully budgeted communications initiative designed to alert both Canadian and U.S. travellers to the new land and sea crossing requirements. If we cannot communicate these new requirements, we risk sabotaging some of the marquee festivals and events for this coming summer season. Take for instance the World Police & Fire Games being held in Burnaby, B.C., from July 31 to August 9. Organizers expect attendance for this event to be more than 10,000 athletes and families alone. Or take the upcoming Montreal International Jazz Festival this July, which attracts significant numbers of visitors from the northeastern states. Given the proximity of these venues to the border and the international nature of both events, a great number of participants and spectators will be traversing the Canada-U.S. frontier to attend.
In the case of the Burnaby event, it will be a critical pre-Olympic Games trial run for the staff, infrastructure, and technology of the Canada Border Services Agency. As we approach Vancouver and Whistler 2010, we must succeed in getting potential visitors across our border and into Canada in a seamless and welcoming manner if we are to truly prosper and thrive as a competitive tourism destination.
Thank you for your time. I'll stop there and welcome any questions you have.
Thank you.