B.C. tourism heads into another banner year: report

THE#BCBIZDAILY
Plus, B.C. takes the lead in economic growth and carbon tax policy 

Top trips
In 2014, B.C. tourism had a great year, with the highest growth overall in total overnight visitors and Canada’s highest growth rate in international visitors—and 2015 looks even better. According to Statistics Canada, international visitors are up 7.6 per cent to date over 2014–an increase of 290,532 visitors. September visits grew 11.5 per cent compared to September 2014, with 290,532 more international visitors over the past year. Key markets were Japan, up 25 per cent, South Korea, up 11.5 per cent, and Germany, up 10.3 per cent. U.S. visitors, B.C.’s largest international market, increased 14.5 per cent in September and showed a year-to-date increase of 9.2 per cent.

More direct flights, lower fuel costs and an international rebranding campaign are credited. “Tourism operators from across the province are having a good year, with revenues and occupancy rates up significantly. With the strong U.S. dollar we are seeing fewer Canadians crossing the border, which is adding to excellent growth from international tourism markets,” said Marsha Walden, CEO of Destination British Columbia, in statement

B.C. has more than 19,200 tourism-related businesses, most of them small businesses. They generated $13.9 billion in revenue in 2013 with a direct contribution to B.C.’s gross domestic product of $7.3 billion, four per cent of the province’s total GDP. Walden expects a strong ending to 2015 due to early openings for many ski resorts.

Heads up
There is a changing of the guard in Canadian growth with British Columbia and Ontario surpassing Alberta and Saskatchewan in a still-sluggish Canadian economy next year, says a new report from CIBC World Markets. B.C.’s economy is expected to grow by 2.8 per cent in 2016, the strongest of the provinces. “Provincial fortunes have been turned on their head,” said Avery Shenfeld, chief economist at CIBC World Markets, in a release. Shenfeld, who co-authored the report, “Provincial Outlook: The Changing of the Guard,” said B.C. “has been benefiting the most from overseas investment and from bordering some of the fastest growing areas of the U.S. economy at present.”

No fiddling, please
At the premiers’ summit with Prime Minister Trudeau ahead of the Paris climate change talks, the topic of carbon tax is sure to be on the agenda. Yesterday, Alberta’s premier announced a tax on carbon, a cap on oilsands emissions, a phasing out of coal and an emphasis on wind. B.C. introduced a carbon tax in 2008, and Premier Christy Clark hopes the federal government isn’t going to now start “fiddling around” with it. “We have what the World Bank says is the most effective carbon pricing anywhere in the world,” she said in an interview with CBC News.

More B.C. carbon tax love from environmental advocates:  “British Columbia’s carbon tax has been in place for six years and all available evidence indicates it has been successful. Per capita fossil fuel combustion is down and the economy has performed well relative to the rest of Canada. The policy has survived two provincial elections and a change in Premier.” And Angel Gurría, secretary-general of the organization for economic co-operation and development, called B.C.’s carbon tax “as near as we have to a textbook case, with wide coverage across sectors and a steady increase in the rate.”