Mr. Chair, members of the committee, thank you for inviting us to appear before you today.
As I am sure you are aware, Rocky Mountaineer's station in Vancouver is one of the four Canadian sites identified for expansion of pre-clearance operations under the new pre-clearance agreement between Canada and the United States, which Bill C-23 seeks to ratify and implement.
We genuinely appreciate the opportunity to share with you our company's story and how pre-clearance will have a positive impact on Canadian and international travellers transiting between Canada and the United States. Expanded pre-clearance in the land, marine, and rail modes will greatly benefit business and leisure travellers alike and generate increased economic activity due to more efficient border operations.
By way of background, Rocky Mountaineer is a proudly 100% Canadian family-owned business that has been operating as a private company in western Canada since 1990, when it was then privatized by the federal government. Since the privatization, we have grown to become the world's largest privately owned luxury tourism train company. We have welcomed aboard nearly two million guests from around the world to enjoy an unparalleled experience on board our all-dome fleet, which offers rich historic storytelling, authentic Canadian hospitality, world-class cuisine, and a first-hand look at the vast and untouched natural beauty of western Canada.
Our company's purpose from day one remains the same: to be creators of life-changing experiences for both our guests and our team members.
Rocky Mountaineer is considered one of the best ways to see the Canadian Rockies and has received numerous international awards and accolades for service excellence. These honours include eight World Travel awards, “World's Leading Travel Experience By Train”, and “World's Leading Luxury Train”. We've also been listed as a “Dream Trip” by Travel + Leisure magazine.
We offer over 65 unique Canadian vacation packages on four distinctive rail routes—all rich in history and natural wonders—through British Columbia, Alberta, and, most recently, into Washington state. Before or after a Rocky Mountaineer journey, a significant number of our guests visit other parts of Canada.
Rocky Mountaineer is proud to employ a strong, passionate team of almost 700 individuals. Each year since 2014, we have been recognized as one of Canada's best-managed companies. In addition, we have earned the “employer of the year” title from the Tourism Industry Association of Canada multiple times, as well as being named one of Canada's “top small and medium employers”.
Those of us who are fortunate enough to spend our time as part of Canada's vibrant tourism community know what an honour it is to be able to showcase the uniqueness and generosity of our great country. We also appreciate our industry's role as an important economic driver for Canada. Each year, tourism in Canada generates $35 billion of GDP—more than forestry, agriculture, and fisheries combined—and employs over 637,000 Canadians. Tourism is one of the fastest-growing industries in Canada and the world.
Rocky Mountaineer is proud of the contributions we are making to our community and the economy, be it from our operations directly, through our partnerships with 1,540 suppliers across the country, or by virtue of the spending of our passengers. Rocky Mountaineer is a significant contributor to the Alberta and B.C. economies. As a matter of perspective, Rocky Mountaineer's GDP contributions in Canada are equivalent to approximately 50% of the Vancouver cruise ship industry's annual GDP contributions in Canada or the employment supported by the construction of 1,200 new homes.
We are very proud of the fact that for every 1,000 tourists who purchase a Rocky Mountaineer journey, approximately $3 million of GDP is directly added to the Canadian economy as our guests stay, dine, cruise, sightsee, and more while enjoying B.C., Alberta, and the Canadian Rockies. Over 80% of our guests are international tourists, with those from the United States, Australia, and the United Kingdom representing our largest markets.
Our newest rail route between Vancouver and Seattle, Washington, which was introduced in 2013, is offered to tourists as a means of connecting the U.S. directly to the Canadian Rockies. This route has been quite popular. We are proud of the fact that our annual guest count growth rate on this route has averaged 20% since its inception. This route shows great promise for us, as cruise passengers are an increasing priority customer base for us. We believe that a breathtaking train journey is an attractive complement to the beginning or the end of a cruise.
While U.S. pre-clearance has long been established at many airports in Canada, ratification of the new agreement between Canada and the U.S., through Bill C-23, will extend benefits for those travelling across our border by train, car, bus, and ship. Currently we have a post-clearance customs and immigration process on our Vancouver to Seattle route. On the southbound journey, U.S. Customs and Border Protection officers conduct customs and immigration processes on board our train upon arrival in Seattle's train station. On the northbound journey, our train arrives in Vancouver's Pacific Central Station where CBSA officers conduct post-clearance procedures.
The average customs and immigration clearance process takes approximately 30 to 45 minutes to clear an entire train set. With the potential implementation of pre-clearance at Rocky Mountaineer Station, we believe we can reduce the processing time and improve security while simultaneously improving our guests' cross-border experience.
Since 2010, Rocky Mountaineer has been a committed and active participant with Canadian and American governments in advancing customs and immigration procedures. For example, we worked collaboratively with U.S. Customs and Border Protection to pilot their new hand-held mobile clearance devices on our Vancouver to Seattle route.
We are pleased to see that the government is continuing to collaborate with industry to improve the arrival experience for visitors. As a company in the business of providing people with life-changing experiences, pre-clearance will ensure a seamless and efficient arrival experience for our guests travelling between Vancouver and Seattle. Once pre-clearance is fully implemented, it will remove an extra step for tourists and travellers, who will simply be able to disembark upon arrival. Pre-clearance will create a much smoother guest experience for us and other cross-border tourism and transportation providers.
In B.C., in addition to Rocky Mountaineer, we know there are numerous other transportation and tourism companies that will greatly benefit from expanded pre-clearance to the marine and rail sectors. For example, Black Ball Ferry operates a daily ferry service from Victoria, B.C. to Port Angeles, Washington, and annually carries over 400,000 passengers, 127,000 passenger vehicles, and $250 million worth of commercial goods. In addition, the Victoria Clipper operates a daily passenger-only ferry service between Victoria and Seattle.
Similarly, on the rail side, our Amtrak colleagues operate a successful twice-daily rail service connecting Vancouver and Seattle.
All of these companies will appreciate the smoother, safer operations that pre-clearance will bring. Undoubtedly, expanded pre-clearance will support continued growth in Canada's valuable tourism industry.
Rocky Mountaineer is dedicated to showcasing Canada as the world's premier travel destination. We are looking to build on our success and continually seek opportunities to grow our business in Canada. We recently made the largest capital investment in the history of our company. The capital program includes the acquisition of 10 new custom-designed bi-level domed rail cars, eight custom-built single-level domed cars, and a major refurbishment program to our existing fleet of 16 bi-level domed cars.
It is our ambition that with this increased capacity, and with pre-clearance capabilities, we can achieve our aggressive growth plans to host most guests, expand our operations, and build even more world-class attractions. We are well under way in achieving these goals. Our 2017 operating season, coinciding with Canada's 150th anniversary celebrations, will be the best year in the history of Rocky Mountaineer.
We continue to assess ways to leverage pre-clearance to expand our reach into the American market, and will develop a pre-clearance program for our guests that will ensure an even more seamless journey between our two great countries. We look forward to continuing to work with government on pre-clearance implementation and other feature initiatives to grow Canada's vibrant tourism industry.
Thank you, and we'd be pleased to take any questions you may have.