Economic Research & Analysis—Publications
 The Economic Review, November 2001

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Performance in 2001
Highlights for the tourism industry this year include increased cruise ship and convention activity, and the Marconi centennial celebrations. Non-resident visitation is expected to be down from the record 426,250 set in 2000 as anticipated declines in auto and air visitors more than offset gains in cruise ship visitation. The decrease in visitors travelling by auto is believed to be linked to high fuel costs and the replacement of the fast ferry (Max Mols) by a slower, conventional ferry service. The fast ferry may have attracted more spontaneous vacationers from the Maritimes in 2000. While air visitation to the end of August had increased over last year this traffic is now being impacted by the September 11 terrorist attacks and the aftermath effects on the airline industry. 

The events of September 11 resulted in the Province hosting 13,000 unscheduled air visitors. This occurred because of the closure of North American airspace and the diversion to Newfoundland and Labrador of Trans Atlantic flights en route from Europe. Although not included in the official tourism data, most visitors did engage in activities such as shopping, dining and sightseeing. Heightened awareness and positive word of mouth from these visitors could potentially translate into future tourism benefits.


Photo courtesy of: Economic Development Corporation, Corner Brook/Ron O’Connell
Cruise ships docked at Corner Brook

Photo courtesy of: Wanda Barrett
In 1904, the first Marconi wireless station in Newfoundland was built at Cape Race. In 1912, it was the only land-based wireless station to pick-up distress calls from the doomed Titanic. 


A record 69 port calls were made by cruise ships this year resulting in almost 24,400 passenger visits. Estimated spending associated with the visits was $2.9 million. This year marked the second year of home-porting with two companies offering cruises operating out of the Province (one from St. Anthony and the other from St. John’s). 

Outlook for 2002
The North American tourism industry is expected to face several challenges in 2002 given weak economic outlooks for Canada and the US as well as ongoing restructuring in the airline industry. At the same time, the events of September 11 have shaken the confidence of some travellers and are posing new challenges for marketers.

In this province, businesses dependent on US clients may be vulnerable. However, most non-resident visitors are Canadians originating from Ontario and the Maritimes and this could help the Province weather the coming challenges. Inquiries for information remain strong.

Cruise ship activity is expected to grow in 2002. St. John’s will host the Atlantic Canada Cruise Association’s annual Symposium in June. This convention will attract about 200 delegates (e.g., cruise industry executives, media, and public and private sector partners) from Canada and the United States and will provide significant exposure to local attractions.

 

This information was current as of November 9, 2001.

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