Department of Tourism, Culture and Recreation
Backgrounder 
Mid-Season Provincial Tourism Performance

Highlights:

• To the end of December 2003, there were an estimated 441,400 non-resident visits to Newfoundland and Labrador and an estimated $316 million in tourism expenditures in the Province. Visitors and associated expenditures were on par in 2003 with tourism growth in 2002.
  
  
• Despite a soft start and a mixed picture in the Province’s regions, Newfoundland and Labrador is on track for an improved performance overall in tourism in 2004, compared to 2003.
  
  
• While Marine Atlantic traffic levels are down from 2003 volumes, both airport and cruise traffic have increased. Passenger movements in and out of the province by the airlines accounts for the largest share of all traffic movements annually. Ferry passenger traffic is down 9% to the end of August, air travel is up 13% for the period ending August, thanks largely to a more competitive airline industry. This has translated into a record convention year with a 40% increase in 2004. Pending cancellations, the cruise industry in 2004 is reporting nearly double the number of visits in 2003.
  
  
• Newfoundland and Labrador’s regions are reporting a more mixed picture. Areas of the province that rely more heavily on auto traffic are experiencing challenges while other areas are benefiting from record air traffic, cruise and conventions. Declining auto visits are also reflected in lower visitation at Newfoundland and Labrador’s historic sites, museums, VICs and public and commercial campgrounds.
  
  
• Tourism inquiries remain strong, up 5% to the end of August, indicating continued interest in our destination, and there is good growth seen through the travel trade. This bodes well for the fall season and beyond.

Background:

• For Newfoundland and Labrador, as in other parts of Canada, there has been high volatility and uncertainty in the marketplace over the past few years where a number of significant events (including post-9/11 impacts, SARs, West Nile Virus, BSE, power failures and forest fires) meant fewer visitors to Canada and some of its regions.
  
  
• Destinations in Atlantic Canada and elsewhere in the country have not seen tourism rebound as strongly as they had hoped in 2004. While the direct impacts of past global events have lessened, research in 2004 indicates that consumer enthusiasm for travel remains subdued both in the US and Canada but is expected to rebound more strongly in 2005 where early signs of the tourism recovery are encouraging.
  
  
• A number of factors may be dampening the enthusiasm of discretionary travellers including the high value of the Canadian dollar, economic and business cycles, escalating gas prices, transportation costs, border security/border waits, the changing habits of consumers, the US election and the weather. These are national trends and not restricted to this province alone.
  
  
• This is an evolving picture. Statistics are still incomplete and will be coming in throughout the remainder of the year. A comprehensive review at the end of the season, combined with the results of an ongoing air and auto exit survey of visitors, will give a more complete perspective.
  
  
• The Department will continue to monitoring performance closely, talking to consumers and reviewing our programming in consultation with industry to make sure the Province is a competitive destination.
  
  
• There are some encouraging signs that a recovery of demand may be ahead. A positive economic climate and pent-up demand could bolster the outlook for leisure travel in Canada and the Atlantic Provinces in 2005. Optimism remains cautious, however, pending the performance of the remainder of the year and into 2005.

Year-To-Date Indicators:

Note: All indicators for 2004 are compared to the same periods of time in 2003. Time periods reported may vary depending on availability of data and are indicated below.

Marine Atlantic:

• Overall passenger traffic on the Marine Atlantic Ferry System decreased 9% covering the period from January to August, compared to the same period in 2003. Vehicle traffic on the Marine Atlantic Ferry System decreased 10% during the same period.
  
  
• Non-resident automobile visits decreased 11% in the period January to August 2004, compared to the same period in 2003. This includes declines of -13% from Ontario, -9% from the Maritimes, -10% from Quebec, -19% from Western Canada and -4% from the USA.
  
  
• Residents traveling outside the province via Marine Atlantic decreased 7% during the months of January to August 2004, compared to the same period in 2003.
  
  
• Exiting bus traffic on the Marine Atlantic Ferry System increased 6% between May and August (+8 buses) 2004, compared to the same period in 2003.

Airports:

• Airport passenger movements at the province’s seven major airports increased 13% during the months of January to August 2004, compared to the same period in 2003. Only two airports reported declines - Stephenville and St. Anthony.
  
  
• Direct international arrivals (St. John’s airport) increased 10% during the months of January to May 2004, compared to the same period in 2003.
  
  
• Car rental revenue at the St. John’s airport increased 4% during the months of January to July 2004, compared to the same period in 2003.

Cruise:

• Cruise ship passenger visits are expected (pending cancellations) to almost double those during the 2003 cruise season. Approximately 147 port calls are scheduled for 2004, compared to 77 calls in 2003. Approximately 35,816 passenger visits are expected by cruise, compared to 20,351 in 2003.¹

Accommodation Occupancy: (based on available data, subject to change pending additional filing by operators)

• Roofed accommodation occupancy rates in the province for the period from January to August 2004 were 47%, down slightly from 48% during 2003.
  
  
  • The Avalon and Labrador regions of the province are on par as compared to last year (Avalon 59% ; Labrador at 37%).
  • Other regions of the province are down for the same time period (Eastern down to 42% from 46%; Central down to 38% from 41%; Western down to 39% from 43%).
    
    
• Room night sales in St. John’s, as measured by the Avalon Convention and Visitor Bureau (ACVB), increased 2% for the period ending August.
  
  
• Very preliminary data indicate commercial campground occupancy rates are down significantly from the same time last year - 24% vs 35% for May to August 2003, 2004 respectively.

Visitor Information Centres:

• Visitors to the Provincial Visitor Information Centres reached 108,138 during the months of May to September 2004, compared to the same period in 2003. This is a decrease of -21% over last season. The number of visits reported during the 2004 operating season was the lowest level recorded during the past 10 seasons.
  
  
• All seven chalets operated by the province recorded decreases in visitation during the 2004 season. The overall decrease is due in part to the significant decrease (-11%) of Marine Atlantic traffic during the summer and in part to the shorter operating season. Comparing May 20, 2004 to September 28, 2004 to the same period in 2003, the decline is -17%.

Provincial Historic Sites:

• Provincial Historic Sites (PHS) received 45,793 visitors and 352 groups between the month of June and August 2004, a 11% decrease when compared to the same period in 2003. Eight of the 10 sites reported a decline. However, it should be noted that the PHS opened five days later this year.

System of Museums:

• Visits to the Provincial Museum of Newfoundland and Labrador (St. John’s) decreased 25% for the months of July and August 2004, compared to the same period in 2003. Overall, visitation to the all museums within the Provincial System of Museums declined -11%:
  
  
  • Visits to the Mary March Provincial Museum decreased -3% for the operating season ending August 2004, compared to the same period in 2003.
  • Visits to the Provincial Seamen’s Museum decreased -13% for the operating season ending August 2004, compared to the same period in 2003.
  • Visits to the Logger’s Exhibit decreased -2% for the operating season ending August 2004, compared to the same period in 2003.

Provincial Parks and Reserves:

• There were 56,413 camping units registered for the 2004 season, down 3.3% over 2003. Only Butter Pot, La Manche (both on the Avalon) and Pistolet Bay (St. Anthony area) showed increases in 2004. The remaining 10 parks reporting declines. The breakdown by region is as follows:
  
  • Avalon Region 21,278 camping units registered, up 6% in 2004, compared to the same period in 2003.
  • Eastern Region 7,034 camping units down 3% in 2004, compared to the same period in 2003.
  • Central Region 8,580 camping units, down 8% in 2004, compared to the same period in 2003.
  • Western/Labador Straits Region, 19,521 camping units, down 10% in 2004, compared to the same period in 2003.
    
    
• Cape St. Mary's Ecological Reserve reported 15,725 visitors in 2004, down 29% from 2003.

National Historic Sites: (for the period ending August 2004)

• Parks Canada experienced a series of rotating strikes during August 2004. All sites (as available) reported declines in August visitation. Signal Hill and Cape Spear data are not yet available for August. Data for these sites is for the time period ending July.
  
  
  • Visits to Red Bay reached 8,307 visitors, down 5% from last year
  • L’Anse aux Meadows reached 28,450 visitors in 2004, down -1% from the same period in 2003
  • Port aux Choix recorded 9,288 visitors in 2004, down -23% from the same period in 2003
  • Visits to Hawthorne Cottage reached 3,815 visitors, down 23% from last year
  • Visits to the Ryan Premises reached 6,177 visitors, down 14% from 2003 levels
  • Castle Hill: 10,600 visitors, down 23% from 2003 levels
  • Signal Hill Visitor Centre reported 4,692 visits in 2004, down -6% from the same period in 2003. Cabot Tower reported 27,744 visits in 2004, up 29% from the same period in 2003
  • Cape Spear Visitor Centre reported 15,084 visits in 2004, down 32% from the same period in 2003. Cape Spear Lighthouse reported.8,093 visits in 2004, up 3% from the same period in 2003.

National Parks
Gros Morne

• Camper nights to the end of July reached 6,496, down 12% compared to the same time period in 2003.
  
  
• Visitation to the Discovery Centre, Lobster Cove Lighthouse and Broom Point are down from levels achieved in 2003 (-12%, -17% and -27% respectively for period ending July 2004).
  
  
• Visitation to the Visitor Centre has increased 5% for the period ending July 2004, compared to the same period in 2003.
  
  
• Western Book Pond Boat Tour is up 11% for the season ending July 2004, compared to the same period in 2003. The Trout River Boat Tour is down 5% in 2004, compared to the same period in 2003.

Terra Nova

• Unavailable from Parks Canada for the year-to-date.

Colony of Avalon (Ferryland)

• Visits to Ferryland for the period May to August 2004 increased 4% compared to the same period in 2003.

Arrivals from St. Pierre and Miquelon (SPM)

• Direct arrivals at the St. John’s airport by resident of SPM decreased 1% for the period January to August 2004, compared to the same period in 2003.
  
  
• Direct arrivals at Fortune by resident of SPM decreased 8% for the period May to August 2004, compared to the same period in 2003.

r A summary table of Selected Provincial Indicators is attached.