The NRTT represents the full value chain of Canada's $82 billion travel and tourism sector*Canadas Travel and Tourism Industry

Committed to Travel Economy Growth*Canadas spectacular beauty attracts visitors from across the globe to every region of our country. These visitors create jobs and sustain local economies. Our Government will continue to work with industry partners to promote Canada as a top destination for tourism.

Speech from the Throne, 2nd Session 41st Parliament, October 17 , 2013*

Shared Objectives*Grow export revenues and diversity the Canadian economyDrive the broader prosperity agenda creating private sector investment opportunities in Canada & jobs in every region of the country

Canada Europe Free Trade Agreement*Travel between countries is a precursor to trade and investment.

Canada is engaged in Free trade agreements with over 60 countries, and Air Transport Agreements with 65 countries.

Canada will not enjoy the full economic benefits of these agreements until public policy impediments concerning aviation cost structure are addressed. *

An Unparalleled Economic Opportunity*Tourism is the worlds 4th fastest growing industry1 billion international travellers $1 trillion in revenues4% growth globally per yearTourisms footprint in Canada alone:$84.8 B in economic activity$17.3 B in export revenue (#1 service export sector)$9.6 B in federal government revenue614,600 jobsCanada is performing well domestically but falling behind internationallycontinued barrier deductions will improve Canadas competitive advantage

Visitor Mix Key To Growth9*2011 Average (rounded). Source: Hotels Association of Canada. **Source: Estimates from TIAC and HLT Advisory4% incremental growth would drive over $3B in valuations for the accommodation sector alone. *

Incremental GrowthAdditional VisitorsAverage Room RateAverage Room Nights Generated p.p.Total Addl Room Nights GeneratedAdditional Hotel Revenue (Canada)4%652,000$129.00*3.5**2,282,000$294M

International Visitation - A Long Climb BackIn 2012, Canada improved to 16th in international arrivals (from 18th)Despite this modest improvement, were still short of 2002 levels by about 3.8 million visitors*Source: UN World Tourism Organization

International Tourist Arrivals - (Top 20 Countries in millions)Rank2002201120121France 77.0France (2010)77.1France83.02Spain 52.3U.S. 62.3U.S. (2011)62.33U.S. 43.6China57.6China57.74Italy 39.8Spain56.7Spain57.75China 36.8Italy46.1Italy46.46U.K. 24.2Turkey29.3Turkey35.77Canada 20.1U.K. (2010)28.3Germany30.48Mexico 19.7Germany28.4U.K.29.39Austria 18.6Malaysia24.7Russian Fed.25.710Germany 18.0Austria23.0Malaysia25.011Hong Kong 16.6Russian Fed.22.7Austria24.212Hungary 15.9Mexico22.7Hong Kong23.813Greece 14.2Hong Kong 22.3Mexico23.114Poland 14.0Ukraine21.4Ukraine23.015Malaysia 13.3Thailand19.1Thailand22.416Turkey12.8Saudi Arabia17.3Canada16.317Portugal11.6Greece16.4Greece15.518Thailand10.9Canada16.0Poland14.819Ukraine10.5Poland13.4Saudi Arabia13.720Netherlands9.6Macau12.9Macao (China)13.6

Competitiveness Challenges : Policy Measures*A competitively funded marketing effort that drives alignment and can balance key and emerging markets including US.A modern aviation and visitor facilitation structure enabling the mobility economy.Addressing infrastructure, programming and labour market issues.

Competitive Challenge Marketing : Investment & AlignmentMajor competitors have increased international tourism marketing investments i.e. Brand USA into CanadaTiming is right to re-evaluate approach to the US market*

Connecting America: A Partnership For ProsperityConnecting America is an industry sponsored proposal for a new three-year coordinated, targeted and measurable tourism marketing co-investment initiative to re-energize the US consumer, utilizing existing air and ground access:Proposed 3 year federal marketing investment of $35M/yr matched 1:1 by Provincial, Local and Private sector investmentGenerating $210M in federal tax revenue aloneProviding or sustaining over 6,000 direct jobs**

Connecting America Visitor Impact*

Connecting America - Economic Impact *

CANADAS TOURISM POTENTIAL YEAR 1YEAR 2YEAR 3TOTALConverted Travellers (,000s)4408501,3602,650Tourism Receipts ($M)2505008101,560Federal Government Revenue ($M)3070110210Jobs Supported1,9003,7006,000---

Conservatives Agreeiii) We support the reduction or elimination of federal government fees, levies, taxes and rents, hidden and otherwise, associated with Canadas national transportation system

Transportation Principles, Policy Declaration of Conservative Party of Canada 2011

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Competitiveness Challenge: Aviation Canada is a fly-to destination, but our cost structure is a barrier to successCanada is ranked 5th with regards to access, but 136th based on aviation cost structure*Increasing competition requires:Aviation cost structure (Transport & Finance)Passenger Facilitation (CIC & CBSA)Air Access Agreements (Transport & Trade)**Source: World Economic Forum Travel and Tourism Competitiveness Report

Competitive Challenge Facilitation: Visa and Border IssuesSignificant progress made - more to do!Current Recommendations:Reducing red tape using technology (ETA) leading to Visa Waiver for markets like Mexico & BrazilOptimizing Existing Security Infrastructure (Beyond the Borders)Reinvest in Visa Processing*

Conservatives Agree*vii) refrain from using the term resident or residence in temporary, student and visitor visas to ensure greater certainty for those temporarily visiting Canada.``

Entry Applications, Permits and Landing fees. Policy Declaration of Conservative Party of Canada 2011

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Recommendations to Achieve 4% Annual Growth*Partner with the travel and tourism industry in Connecting America, an unprecedented strategically-aligned marketing initiative to drive US leisure demand for tourism vacation product across Canada

Reduce the government-imposed aviation cost burden in order to maximize economic benefits for Canadians of international Open Skies and Free Trade agreements.

Modernize our visitor visa system by differentiating between travellers and residentsIncrease on line processing of traveller visa applications from key source markets; Build on our information-sharing and security partnership with the US to establish a reciprocal trusted-traveller visa waiver system for travellers from key markets;Grant visa waiver status for Brazil and Mexico leisure and business travellers.*

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