“Airport Competitiveness a Key Link in the Tourism Value Chain”

Tuesday, June 17, 2008 -

“Airport Competitiveness a Key Link
in the Tourism Value Chain”

OTTAWA (June 17, 2008) – “Canada’s airports are a key part of Canada’s tourism value chain – a part that must be competitive in order for Canada to be competitive in the tourism business,” Canadian Airports Council President and CEO Jim Facette today told members of the House of Commons Standing Committee on Industry, Science and Technology. 

“As gateways to the communities they serve, Canada’s airports have an integral role in the promoting and furthering of tourism in this country.  We are a key part of Canada’s tourism value chain,” said Mr. Facette in his presentation.  “In order for Canada to be  competitive in the tourism business, each link in the value chain must be competitive, efficiently operated and customer focused.”

The comments came in a presentation to the House committee as it studies Canada’s competitiveness as a world tourism destination.  According to a recent report from the Tourism Industry Association of Canada (TIAC), Canada's travel deficit has ballooned to $10.3 billion in 2007 and the latest quarterly numbers for 2008 show a continued deterioration. 

The CAC outlined three key areas impacting airport competitiveness today:

• Cost Competitiveness – Canada’s airports pay nearly $300 million a year to the federal government in airport rent.  While investing more than $9.5 billion in self-funded infrastructure improvements over the past 15 years, they have spent $2.5 billion in rent.
  
  Airports generate income in to the federal treasury through job creation, both direct and indirect, and attracting tourism and investment.  Airports in Canada are committed to passing along any savings from rent relief to their users, be it the airlines or passengers.
  
  
• Air Access – Canada needs better air services in order to allow more carriers to respond to market demand for competitive international air service to Canada.  While the U.S. has 92 Open Skies Agreements, Canada has just five.  Airports contend that success in the ongoing talks between Canada and the European Union – Canada’s second biggest source of tourists – is vital to growing Canada’s tourism base.
  
  
• Border Facilitation – Long line-ups to border services in airport arrivals halls leave a terribly poor impression with tourists to Canada.  It is essential that Canada Border Services Agency have the resources it needs to adequately staff the needs of Canada’s airports – large and small.  Airports are actively marketing their communities to airlines of the world but need to be able to provide border services to serve new flights.

“Working with their local and provincial tourism sectors, Canada's airports today are actively promoting their communities in the U.S. and overseas,” said Mr. Facette.    “They attend air service trade shows, they’re meeting with air carriers from around the world, and they are making a case for Canada.  We need federal policies that encourage more tourists not ones that will result in a less competitive business.”

About the Canadian Airports Council

The Canadian Airports Council (CAC) is the voice for Canada’s airports.  Its 49 members represent more than 180 airports, including all of the National Airports System (NAS) airports and most significant municipal airports in every province and territory. Together, CAC members handle virtually all of the nation’s air cargo and international passenger traffic and 95% of domestic passenger traffic.  They create in excess of $45 billion in economic activity in the communities they serve.  And more than 200,000 jobs are directly associated with CAC member airports, generating a payroll of more than $8 billion annually.