On the exchange-rate
front lines:
Metro Toronto
Convention Center
Canada has long been a
shoo-in as the North American bargain destination for U.S.
group business. But a weakening greenback coupled with tighter
passport requirements at the border have Canadian hoteliers
fretting over lost business and the country’s tourism agencies
enacting new marketing strategies to lure dollar-shy U.S. planners
north.
Last November, the U.S. dollar fell to
an all-time low against the Canadian dollar, fetching a mere 98
cents. That same month, the Toronto-based Ontario Ministry of
Tourism released its Business Conditions Survey, in which 62
percent of Ontario hoteliers cited the fluctuating exchange rate as
the most significant business impediment. “It’s a huge concern
among suppliers, because it affects inbound U.S. business,” said
Jackie Ma, senior research officer for the OMT. “It’s all they talk
about. We will have to wait and see what happens in 2008 and
reassess the situation then.”
According to Andrew Weir, vice
president of communications for Tourism Toronto, the issue of cost
is a challenge, but the city remains a strong draw for first-time
group business from the United States because of its proximity and
cultural comfort level. “The marketing emphasis for us today is the
quality you still get for the dollar,” said Weir. “We are working
with clients to build value into their budget.”
Hotels, too, are pumping up the
real-time value of the dollar. Last November, the luxury 380-room
Four Seasons Toronto rolled out a group meeting package for
business through Aug. 31, 2008, packed with value-adds such as a
$50 credit per night, per room; a complimentary coffee break, and
more. “We work at retaining long-term bookings by
offering these value-driven programs,” said spokesperson Melanie
Greco.
The Canadian Tourism Council tackled
passport concerns by partnering with the U.S. Postal Service to
help associations expedite the application process for their
members, an approach that Susan Iris, vice president, U.S. sales,
for the CTC, called “extremely successful.”
Rising hotel rates also are adding to
the increased cost of doing business in Canada. A Global
Performance report released by Hendersonville, Tenn.-based Smith
Travel Research for the first 10 months of 2007 showed the average
daily rate for Toronto increased by 5 percent, to $133.90, over
2006. October 2007 showed one of the highest gains, with the ADR
jumping 17.3 percent over the same period in 2006.