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the United States, although this percentage is
slowly declining in favour of outbound visits to
other destinations. In recent years, the tourism
account balance ± the difference between expenditures
by Canadians going abroad and receipts
from foreigners ± has declined. In 1992, the deficit
was over $6 billion; in 1995, it was $3 billion.
Moreover, this inbound/outbound gap has closed.
In 1992, the gap was almost 7 million; in 1995, it
was less than 1.3 million.
While international tourism is important,
domestic tourism far exceeds it in economic
significance. Approximately 85 per cent of all
tourism spending in Canada comes from domestic
tourism receipts. The small ratio of international to
domestic is due in large part to the size of Canada
and its domestic attractions, especially outdoor
recreation opportunities. The long-term trend,
however, is one of declining domestic appeal, due
to increasing tourism imports as a result of intense
international competition for the very active and
relatively wealthy Canadian tourists, and declining
inter-provincial tourism coincident with a gradual
shift to multiple shorter duration vacations.
Although domestic tourism is practised by the
majority �80 per cent), it represents only about 50
per cent of the total annual tourism expenditure by
Canadians. The relatively low expenditures are in
part because most domestic trips are taken by
private automobile to destinations within the
tourists' own province for visiting friends and
relatives.
Until recently, tourism had trouble convincing
sceptics that it played a significant economic role in
the Canadian economy. This was due to the fact
that tourism is not an industry in the traditional
sense. Its consumption includes both tourism and
non-tourism commodities �such as accommodation
and groceries, respectively) and cuts across
various industries �such as transportation and
retail trade). These problems have been overcome
by creating a tourism satellite account and
associated statistical indicators. In fact, Canada
plays a lead role in developing new tools for
tourism analysis.
In recent years, the industry has performed
better than both the business sector and the
Canadian economy as a whole. For example, total
tourism spending in 1995 was $41.8 billion, up 7.1
Canada 67
per cent from 1994. Its resulting total direct effect
on the economy is estimated at $17.0 billion, up
7.0 per cent over 1994. By comparison, the
Canadian gross domestic product rose only 3.9
per cent in the same period. Employment
estimates also indicate that tourism job creation
has exceeded that in the overall business sector.
In another vein, tourism in Canada has a welldeveloped
social infrastructure with many different
public and private sector organisations including
government departments, trades, industry advocacy
groups, destination marketing organisations
and other tourism bodies at all levels. Within the
public sector, the federal, provincial or territorial
governments share roles and responsibilities in
respect to tourism. Both orders of government
share involvements in overall strategic planning
and co-ordination, marketing activities, research,
data and information activities, and reception,
awareness and hospitality activities. Tourism
development in terms of planning and plant
development, however, is the prime responsibility
of the provinces and territories, as well as of private
enterprises. Similarly, while education is the
responsibility of the provinces and territories, the
task for human resource development falls
primarily on the industry itself.
Further, within the non-government sector,
many of the various national trade associations
and advocacy organisations have associated
provincial, territorial and local regional organisations.
Examples include local convention and
visitor bureaus, local destination marketing organisations
and regional industry or sector associations.
Each is concerned with legislation, policy
and coordinated action at the relevant level and
focus. The two most influential organisations at the
national level are the Canadian Tourism Commission
�CTC) and the Tourism Industry Association
of Canada �TIAC). The CTC is a national
partnership between the industry and all levels of
government in Canada. Its main objectives are to
market the country as a destination, and to provide
timely and accurate information to aid decision
making. TIAC is a national advocacy organisation
that promotes the interests of Canada's tourism by
formulating and advocating policies and programmes
to the federal government.