The Halifax Herald - September 1 2006 Back to Archive

Tourists, Where Art Thou?
N.S. Industry Hurting After 12% Drop in Summer Visitors

By CLARE MELLOR - Business Reporter

What is traditionally one of the busiest tourist months in Nova Scotia turned out to be a sore disappointment for many operators. The number of visitors to Nova Scotia in July plummeted 12 per cent over last year, provincial tourism statistics released Friday show.

Last year was already considered a miserable year for tourists, with visitor numbers down three per cent last July over 2004. The even poorer showing this July prompted Tourism Minister Len Goucher to issue a statement Friday announcing that the province will roll out its fall advertising campaign, aimed at attracting visitors from the Atlantic region, earlier than usual. The campaign, which usually happens in late September, will be launched next week and will include more television, print and direct marketing advertising. "Everyone in the country is facing these same challenges and there's no doubt we are feeling it here, especially in June and July," he said.

The province blames the drop in visitors, especially Americans, on a combination of factors that include high gas prices, security concerns, weather and the high Canadian dollar. "We're continuing to work hard to implement our marketing plan and everyone - government, industry groups and operators &emdash; is looking at what they can do to bring more visitors here into the fall," Mr. Goucher said.

However, Liberal tourism critic Stephen McNeil says government must face the reality that its tourism marketing plan isn't working. "As long as they continue to dig their heels in and say there is no problem, we're going to continue to be in this downward spiral," he said.

"There is no question that tourism is down and down drastically. If the department is saying it is (down) 12 per cent, you can bet that it is a lot more than that."

The Liberals have accused the government of glossing over declining tourism figures and pretending the industry is fine, even though tourist operators say otherwise.

"To me, you can find the odd operator who says things are OK, but by and large the industry itself is hurting," Mr. McNeil said.

Provincial statistics show that in July the total number of visitors to Nova Scotia was down 12 per cent, automobile visitors were down 12 per cent, motorcoach visitors dropped 38 per cent, RV visits were down 24 per cent and air visitors were down one per cent.

Overall this year to date, visitation to the province is up one per cent over last year, and visits to the province's tourist website, novascotia.com, increased 21 per cent in July.

Annapolis Valley saw room nights sold rise two per cent in July over last year. It was the only region to see an increase.

Cape Breton saw no change in room nights sold in July, while Halifax-Dartmouth saw a two per cent decline, South Shore a three per cent decline, Eastern Shore a seven per cent decline and Northumberland and Fundy shores a four per cent decline.

Heather Ballard, who operates Theresa and Heather's Country Store in Seaforth, said Friday that tourists seem to be visiting the Eastern Shore. However, the high price of gasoline means many tourists are cutting back on spending.

"It seems like people are travelling more thrifty. I think that may be one of the biggest problems. They are spending money on gas and trying to save it somewhere else," said Ms. Ballard, who chairs the Seaside Tourism Association, comprised of businesses along the Eastern Shore.

She said businesses in the accommodation sector are feeling the pinch.

"In our location, we get a lot of tourists but people seem to be staying at cheaper accommodations, like at friends and family."

Darlene Grant-Fiander, acting president of the Tourism Industry Association of Nova Scotia, said some tourism businesses in the province seem to be doing OK and others are hurting.

"In some communities, there are six businesses. Three are doing great and three are not. It's that kind of stuff."

A survey carried out in July by the association shows that 75 per cent of members believe they will do as well as last year, Ms. Grant-Fiander said Friday.

She said it is critical that access points to Nova Scotia be given priority. Government and industry must work together to save the ferry crossing to Digby from Saint John, she said.

"To save that ferry is key. We cannot lose another access point into this province," she said.

The number of U.S. visits to Nova Scotia for the first half of the year has dropped 36 per cent since 2001, according to the province.

"We'll be taking a close look at everything to see what's working and what we can do differently to make Nova Scotia more competitive and to tap into new markets," Mr. Goucher said.