Attracting US tourists to Canada

Reports - focus on North American tourism Attracting US tourists to Canada

tion

The Canadian tourism industry is greatly dependent upon the US market. A 1985 study of the US travel market revealed several areas for improvement in attracting US tourism. Jerry Dybka of Policy, Analysis and Liaison at Tourism Canada, describes the results of the study, and its implications for the design and implementation of marketing strategies. In

lc)Ki.

declining

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federal

missioned

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tn study

study

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57%

to Canada is

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excess

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Americans

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year.

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incre;ise

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202

that

international

if it wishes pleasure

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TOURISM

Findings What

insight\

MANAGEMENT

does

thi\

in-depth

September

ex-

1986

Reports

amination offer to the Canadian tourism sector? First, the study makes it clear that Canada could be doing much better in attracting American pleasure travellers. While the US pleasure-travel market is enormous (annually, over 130 million Americans take 468 million personal pleasure trips averaging four days in length), Canada’s market share is small. In the I2 months preceding the interviews. from the fall of 1984 to the fall of lY85, 4.3% or some 5.6 million American pleasure travellers visited Canada staying for a total of 49.6 million trip-nights. This accounts for only 2.6% of all trip-nights of pleasure travel taken by Americans. According to the study, Canada’s poor showing is largely attributable to a lack of awareness by Americans. Fewer than one in five US travellers even thinks of Canada as a place to consider for a vacation. In other words, for about 85% of Americans, Canada is not even on the list. On the other hand. the study found a strong link does exist hetween thinking about a Canadian destination and intending to go there. The problem appears to be one of “out of sight. out of mind”. Given the positive link between awareness and choice of Canada as a destination. the study states that “there is a real opportunity to increase share of the US market through a concerted and intrusive advertising campaign”.

Americans spend only 2.6’1,, of their total tripnights of pleasure travel in Canada. Examined on the basis of trip type. Canada’s share of American travel is as follows:

l touring trip 0

l 0

0 0

0 0

outdoors trip city trip trip to theme park, exhibition. special event cruise visit to friends or relatives close-to-home leisure trip resort trip

The most surprising finding to from the research is that the trip. and not the outdoors Canada’s greatest asset

TOURISM

MANAGEMENT

6.8% 5.4% 7.8% 2.1 ‘:;a I .5’%

I .4’10 I .2”% 0.X’%,

emerge touring trip. is in the

pleasure-travel market. It had been widely assumed that the great outdoors, Canada’s natural beauty, scenery and wilderness. was our key selling point. The study dispels this prevailing belief. A touring trip is defined as one by bus. car or train through areas of scenic beauty or of cultural or general interest. In regional terms, the most preferred area for touring is the Pacific coast (38%), followed by Quebec (21%). Ontario (X0%), the Rockies (15%) and the Maritimes (9%). The study also found that Canada’s individual products, including our outdoors, cities and resorts, are encountering an image problem in the USA. Americans just do not perceive our products as being superior to those found in their own country. Our primary strength in terms of image is that we are seen as a foreign destination to Americans, close and familiar yet somehow different. The study posits that ‘.the essential difference is the people of Canada-their British and French heritage, their ethnic diversity and their regional and local traditions”, and adds “Canada’s strength as a pleasure travel destination does not lie in its emulation of American destinations. but rather in its points of difference.” The Canadian cultural mosaic has appeal to our southern neighbours.

What implications do these findings have for Canada’s marketing approach in the USA? If Canada is to launch a “concerted and intrusive advertising campaign”. what factors must be taken into account’? A number of observations are offered. focusing on the newly discovered strength of the touring market and on an enhanced role for culture as a tourist attraction. Toltriq rfestimrtion. There is an immediate opportunity to market Canada actively as B destination for a touring trip. Rcgiordfoctts.

Since touring involves sampling a pot-pourri of our products. the focus must be regional, encompassing a number of individual products

September

1986

that may not be sufficient travel generators on their own but which, when packaged together, make Canadian touring destinations attractive prospects. Touring puckage.~. Much remains to be done at the regional level to identify the most promising regional touring “products”. In addition. the private sector can play a significant role in putting together touring packages tailored to the very specific needs of particular lifestyle segments. Citks. Our major cities can gain from being positioned not just as destinations on their own, but also as gateways to an enjoyable touring trip, one that can include our countryside. towns and villages. resorts. cruises, theme parks and special events. as well as the great outdoors.

Forrigrr mystiqw. It will be important to emphasize Canada’s foreign mystique in national advertising and communications and to portray the exciting things offered in the way of hotels, food, landmarks and things to do and see. Less important will be Canada’s great outdoors. While this aspect of Canada is clearly important and translates into Canada’s second largest market. the evidence is that our real opportunity lies in portraying Canada an exciting foreign place. Our ;lS image of vast open spaces is already well established. We now need to begin the job of filling in those open spaces. Ati\wtisirzg.

There is an opportunity to incrcisc awareness of Canada ‘ through advertising specifically designed to enhance Canada’s visibility in the eyes of US travellers. In order to meet this objective. it is important that regional and national campaigns be coordinated as much as possible and that a central theme be developed for use in all US-directed advertising.

Based on the research findings. the study also identifies what arc labelled as “harriers” and “hot buttons”-an overview of Canada’s strengths and weaknesses vis-a-vis the US pleasure-

203

travel market. Like the preceding observations. these insights are aimed at facilitating the design and implementation of marketing strategies by both the public and the private sector. For example, the study notes that in general. Americans have a positive image of Canada but they tend to view their own country in the same positive light. In other words, although they consider Canada beautiful, scenic. natural, clean. etc. they hold the USA in the same high regard. Thus, marketers must not only search for areas in which Canada is doing well. they must find arcas in vvhich we can demonstrate a clear edge and advantage over the USA. One such area is a touring trip which highlights our “foreignness” , our different cultures and different ways of living as compared to the USA. With regard to the marketing of cities. the study notes that Canada’s image of vast open spaces has worked against it in the city-trip market. Canadian cities are perceived as clean. safe and walkable but Americans do not consider them sophistrcated in terms of shopping. entertainment, reataurants and cultural events. The study concludes that the gap between how our cities arc perceived and what they do in fact offer can be narrowed communications through effective prograninics. Canada’s price image was found to be on the whole more favourahle than that of the USA. Canadian prices for touring or outdoor trips are deemed to be similar to those in the USA. while Canadian cities and resort area\ are perccivcd a\ Icsx cxpens~ve than US cities and resorts. The studs found no evidence that OS pleasure travcllers are dismissing (‘anada as a destination because of prices. the ahove material is Of course. merely a synopsis of the study’s key findings and rccommerltl~~tionx. With a sample size of 9 000 and national scope. the study contain\ a wealth of information that C;III he examined from a nunihcr of perspectives: 0 0 0

product-tl)-procluct analysi\ of market Gzc md share: demographic\: product strengths and wcakne44es:

204

0 0 0 0

image strengths and weaknesses; market identification: trip-type activities; and trip planning.

Although the study findings were only released in February of 1986, they have already had a significant impact on a number of tourism initiatives. Indeed. the insights provided by the study had an immediate impact on the Canadian federal government and its 1986 US marketing campaign.

Impact of the study With an up-to-date, comprehensive profile of the American pleasure traveller in its hands. the Canadian federal government went to work redesigning its marketing campaign in the US to reflect the findings of the study. By early March, television and magazine advertisements were launched in the USA promoting Canada as a tourist destination. Aimed at enhancing Canada’s image, the advertisements focus on the country’s “old world” (our cultural and historic destinations), “wild world” (our scenic outdoors and wilderness areas) and “new world” (our exciting and sophisticated urban centres). Viewed together, the three themes portray Canada as ;I land of variety. a multifaceted destination, an ideal locale for a touring trip. With :I heavy penrtra tion in the USA, the marketing campaign also serves to overcome the “lack of awareness” problems. By the time the campaign ends in the early summer. by which time most decisions concerning vacation plans will li;ice been made, millions and millions of Americans will have been exposed to Canada and its travel potential.

Series of promotions The significance of culture as a tourist attraction also led to the signing of an agreement between Canada’s Ministers of Tourism, Communications and Multiculturalism. Over $1 million will be committed to ;I series of pilot projects which will evaluate the tourism impact of select Canadian cultural and multicultural destinations promoted in the US market in 19x6 and

TOURISM

1987. As well. a national conference on ‘tourism and culture’ will be held this fall. These are just a few examples of the immediate impact of the study findings. As the database is examined in greater detail by more and more government and industry representatives. at all levels, its relevance and utility as a marketing instrument will become more evident. Just now it is difficult to ascertain the economic return that will be produced from the better designed marketing campaigns that flow from the study’s information. The total impact of the study may not be fully known for a few years when the statistics on US visitation to Canada for 1086 and onwards become available.

Conclusion In releasing the findings. Canada’s Minister of State for Tourism, the Honourable Jack B. Murta. stressed that the study was conducted for the benefit of all participants in the Canadian tourism sector and the wealth of information it contains should be utilized by them to attract more American visitors to Canada. According to the minister, the $1.7 million cost of the study vvill be repaid through the revenues generated from increased levels of visitation. triggered by marketing initiatives by governments and husinesse\ alike. The government of (‘anada is providing ;I Hi,~/~Iig/zt.s Kcport of the US pleasure-travel market study free of charge to interested parties. For those individuals who ma> require more detailed infor1nation. the report in its entrrety. complete data tables and/or the data tape. will hc available for a fee. Inquiries about data availability should bc directed to the Manager. Rcscarch and Analysis, Tourism Canada at the address given below or phone (6 13) 99%4.328. Jerry M. Dybka Policy, Analysis and Liaison Tourism Canada 235 Queen Street 4th Floor East Ottawa, Ontario, K7A OH6

MANAGEMENT

September

1986