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The Economic Review, November 2003
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Tourism

2003 Performance

The province's tourism industry performed relatively well in 2003, with visitors and associated expenditures expected to be on par with 2002. This performance stands in contrast to national trends where extraordinary events, most notably the SARS scare in Ontario, kept substantial numbers of visitors away.

Nationally, many challenges emerged this year which contributed to lower tourism numbers across the country. These include the overall weakness in the US economy, restructuring/problems in the airline industry, appreciation of the Canadian dollar, terrorism related travel concerns, and a number of unusual hits to the industry (e.g., SARS outbreak and power outages). Non-resident visitor trips to Canada were down by almost 14% in the first nine months.

Non-Resident Visitors and Spending

Department of Tourism, Culture and Recreation

 

The provincial tourism industry did not experience the large drop that some other regions of the country recorded in 2003. In fact, the province benefitted from the trend of increased domestic travel, with continuing strong responses from target markets in Ontario and the Maritimes, and a late-season surge by last minute travellers. In addition, more residents of the province chose to stay and travel within the province this year instead of visiting other places. For the year, non-resident visitors and associated expenditures are expected to be about the same as 2002. Data for the first eight months indicate that increased airline visitors is offsetting declines in automobile and cruise ship visitors.
 

In an effort to build on the gains already achieved in tourism, the province is taking steps to increase the quality of the tourism product and involve industry more fully in planning and marketing initiatives. The formation of the Newfoundland and Labrador Tourism Marketing Council will ensure a closer partnership between government and other industry stakeholders in marketing the province. Furthermore, the province, in partnership with industry and federal stakeholders, initiated the province-wide tourism product development strategy in 2003. This strategy will pay particular attention to product and service quality initiatives in the tourism industry.

Outlook

The outlook for the provincial tourism industry for 2004 is positive. Factors behind the optimism include the trend of Canadians increasingly choosing domestic destinations and strengthening economic growth nationally. Next year, Newfoundland and Labrador will celebrate 500 years of French presence in the province. Celebrations for the French Heritage Year include family reunions, theatre festivals and other initiatives specific to the communities which have a strong French history and heritage.
 
Icebergs

An average of 500 icebergs float as far South as St. John’s each year. Many can be viewed from shore.
About 90% of all icebergs in Canadian waters are from Western Greenland glaciers
The peak time for iceberg sightings is spring and early summer
Almost 90% of an iceberg is below water
The glacier ice in an iceberg is between 3,000 - 10,000 years old

 
Iceberg in Narrows, St. John's
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This information was current as of November 14, 2003.
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