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SARS, Mad Cow, Canada Customs ... a toxic mix for tourism industry (7/03)

Tourism operators in northwestern Ontario are frustrated with the government's lack of ability to devise a consistent strategy on marketing the North.
Tourism operators in northwestern Ontario are frustrated with the government's lack of ability to devise a consistent strategy on marketing the North. In the aftermath of SARS and the war in Iraq, many operators are reporting a decline in revenues by about 35 per cent.
"There is a total lack of marketing by the Province of Ontario in turn for the tax dollars we generate as an industry in Northern Ontario," says Mal Tygesson, owner of Evergreen Lodge on Eagle Lake, approximately 100 kilometres north of Kenora.

For the past 25 years he has been complaining to the provincial government that not enough is being done to market Northern Ontario.

Toronto has been given millions of dollars from the provincial government in an attempt to jump-start the tourism economy during the SARS scare. However, the province was slow to react when Northern Ontario tourism operators were feeling the pinch following the cancellation of the spring bear hunt, Tygesson says.

"There are a whole lot of inequities."

He also believes the federal government does not realize how hard tourism operators in the North are hit when American tourists are turned away at the border.

Immigration officers have access to the records of Americans, and if through a check it is found that a person has a drinking conviction on their record, he or she could be turned away upon the immigration officer's discretion, says Dennis Pella, manager of Canadian Immigration in northwestern Ontario. In most American states driving while under the influence is considered a misdemeanor, whereas in Canadian law it is viewed as a criminal offence.

That means owners like Tygesson and Bob Palluch of Temple Bay Lodge, whose clientele consist of 95 to 98 per cent Americans, lose revenues if their clients are inadmissible.

"I lost four charter bus loads last year because (Canadian border officials) pulled identification for no reason," Palluch says.

It took perhaps one or two people who had misdemeanors to turn a bus of 40 tourists back, he adds. Those people tell friends and relatives about the two-hour border delays that in the end were futile since they were not given admittance into Canada, he explains.

"We have lost hundreds of thousands of dollars in this area because of our Customs (regulations)," Palluch says.

But Pella says Canadian Immigration will not ignore criminal records.

"We will not turn around and play dead surrounding criminal offences," Pella explains.

"We are still going to have to make decisions and we will do our best to be as balanced as we can."

In addition to border-crossing issues, Palluch has received cancellations from Americans who are afraid of catching SARS or Mad Cow disease. Others have problems with Canada's position on the Iraq war.

Coupled with these deterrents is the American economy.

Their lower dollar and economic uncertainty has convinced some Americans to stay closer to home while the Canadian dollar gains ground.

"We have already lost 20 per cent on the exchange," Palluch says. "If we passed that down to our customers they would walk right out the door, so we have to absorb that somehow."

Together with all the factors affecting his business, Tygesson says he will lose close to 35 per cent in revenues this year due to the exchange and fewer visitors.

"Last year, for every $100 (US) that was spent, I had $150 Canadian to spend. This year will be closer to $130 (Cdn) to spend," Tygesson explains.

To counterbalance the effects on his business, he has had to cut back on summer hiring.

He is not alone. Marilyn Bilsbarrow of the Patricia Regional Tourist Council, which represents 200 outfitters and hotel owners in northwestern Ontario, says that business in the industry has dropped 15 to 20 per cent overall from last year.

Tygesson wants to see change happen and happen quickly. He wants to see the governments introduce programs and policies with staying power "not subject to whims of the government of the day," he says.

Tourism is one of the largest economic sectors in Northern Ontario, and the governments do not give us a whole lot of fertilizer to grow," Tygesson says.

But Brian Coburn, minister of tourism and recreation, takes exception to that statement noting approximately $6 million was spent on marketing in the last two fiscal years. However, Coburn would not disclose details on the amount of funding that was earmarked for the North.

Coburn did say under the new title of Northern Ontario Travel Association Programs (NOTAP), six panels (Algoma Country, James Bay Frontier, Near North, North of Superior Travel Association, Rainbow Country and Sunset Country) have been formed throughout Northern Ontario and will confer with operators on marketing strategies.

"We have given (the six panels) $100,000 a piece to operate," Coburn says. "They will be determining in their particular regions what needs to be done."

However, the groups are not yet operational since they have yet to develop marketing strategies.

In addition, there will be northern representatives on the Ontario Tourism Marketing Partnerships Corp.

(OYMPC) board. The idea is for the six panels to organize marketing plans and then forward an application to the Ontario Tourism Marketing Partnerships Corp. (OTMPC), "which is the funding arm of programs in my ministry," Coburn explains.

But when this will come to fruition remains a mystery.

Ted Day, Ontario Tourism Marketing Partnership Corp. director of marketing for the North, says the provincial government has allocated $34 million for this year, of which "$4.3 million will be coming to the North."

As for the northern representatives, approximately three people will be appointed to the OTMPC board, he says.

However, there is no date as to when northern representatives will be appointed or when the whole initiative is expected to be fully operational.

Back in northwestern Ontario, Tygesson is anxious to see the provincial government commit to some strategies and stick to them. "The solution is that the government needs to get their head out of their ass," Tygesson says.

"They need to listen to the people that have been talking to them for years and follow our direction."