• A number of factors were seen to have dampened the enthusiasm of discretionary travellers in 2004. These include: 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 were national trends and not restricted to this province alone.
   
• Newfoundland and Labrador tourism faced a number of challenges of its own in 2004. Some of these were ongoing issues, for example, the size and reach of our marketing budgets vis � vis our competitors, the continuing decline in marine traffic, high fuel costs and issues around the Gulf ferry service which are being examined through a special Marine Atlantic Advisory Committee. Others such as lengthy strikes involving both provincial and federal workers had an impact on both resident and non-resident travel.

• 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.
   
• The Conference Board of Canada is reporting that consumer enthusiasm for travel is expected to rebound more strongly in 2005 where early signs of the tourism recovery are encouraging and winter travel intentions are strong. ¹ According to the Conference Board= s latest research for the summer of 2005, the strong dollar is motivating outbound travel of Canadians (especially to the US) but the domestic outlook for Canadian travel looks stable and overall consumer confidence is supporting a positive outlook.
  
  ¹   See Conference Board of Canada, Winter Travel Intentions (Conference Board: Fall 2004). See also Conference Board of Canada Members Briefing, Summer 2005: Our First Look (Conference Board, January 2005).
   
• Canadians remain upbeat about their prospects for jobs and economic growth over the next six months, although the Conference Board has reduced its forecast for real economic growth for Canada to 2.5 per cent in 2005. Rising interest rates may have curtailed discretionary spending, especially on large-ticket items but these rates are expected to hold. While the relative strength of the Canadian dollar vis � vis the US dollar and high energy prices will continue to have an impact in 2005, the domestic leisure market is expected to hold its own.
   
• Of those Canadians polled by the Conference Board in December 2004, 69 per said that they planned to take a summer trip in 2005 and of these, 66 per cent indicated they planned to remain in Canada. While Ontario, Quebec, British Columbia and Alberta were the top-ranked provinces in order of preference, Newfoundland and Labrador was next, leading the other Atlantic Provinces and the remaining provinces and territories.
   
• Newfoundland and Labrador= s abundant natural and cultural assets and diverse and unique products are finding highly receptive markets, as confirmed by our growth. As outlined in the recent Product Development Study, Special People, Special Places, targeted efforts to refresh and enhance existing products and key infrastructure will make the Province more market ready and lead to increased visitation and yield, especially by building on successful tourism clusters and extending seasons. The opening of the Rooms in 2005 signals a positive message about the quality, value and visibility of the province= s tourism offerings.
   
• Nature and cultural heritage destinations are growing in popularity and Newfoundland and Labrador fits well into this niche. The maturing of the adventure tourism sector, new product offerings, upgraded web-based provincial tourism services and new trade initiatives will help meet the needs of the aging and increasingly wealthy, well-educated population in North America which has a higher propensity to travel as well as a thirst for new destinations.
   
• Newfoundland and Labrador will continue to benefit from these trends. The conditions are ripe: incomes in North America are growing; more older people are travelling; destinations such as Newfoundland and Labrador are increasingly sought after for their intrinsic qualities and worldwide conditions continue to favour domestic venues in 2005. also added to destination awareness. New properties in Newfoundland and Labrador are also indicators of continued strong market growth.

• Airport passenger movements at the province= s seven major airports increased 13 per cent during the months of January to December 2004, compared to the same period in 2003. Only Stephenville Airport reported a decline.
   
• Car rental revenue at the St. John= s airport increased 2 per cent during the months of January to December 2004, compared to the same period in 2003.

• Cruise ship passenger visits have almost doubled those during the 2003 cruise season. A total of 142 port calls were made in 2004 almost double the number recorded during the 2003 cruise season. Passenger visits increased 25 percent to 25,401.

• Parks Canada experienced a series of rotating strikes for the period August 13, 2004 to October 12, 2004. All sites (as available) reported declines in August visitation. Signal Hill and Cape Spear data are not yet available. Available data are as follows:
  • Visits to Red Bay reached 9,738 visitors in 2004, down 7 per cent from 2003 (operating season June to September)
  • L= Anse aux Meadows reached 32,942 visitors in 2004, down 3 per cent from the same period in 2003
  • Port aux Choix recorded 10,504 visitors in 2004, down 25 per cent from the same period in 2003
  • Visits to Hawthorne Cottage reached 3,815 visitors, down 23 per cent from last year
  • Visits to the Ryan Premises reached 7,549 visitors, down 11 per cent from 2003 levels
  • Castle Hill: 12,316 visitors, down 25 per cent from 2003 levels

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