Whistler-Blackcomb and Tourism Whistler are watching closely to see what impact, if any, parity between the U.S. dollar and Canadian dollar might have on tourism this winter.
The Loonie reached parity with the U.S. greenback last week for the first time since 1976. The Canadian dollar has now increased more than 16 per cent, relative to the American dollar, in the past year.
When combined with higher gasoline prices, many in the Canadian tourism industry are wondering if Americans will continue to visit, and whether Canadians will choose to vacation south of the border.
Jodi Westbury, research manager for Tourism Whistler, says the next few months will be telling.
“From an advanced booking perspective, our longest haul visitors generally book earliest and from what we’ve seen in terms of bookings and our pacing for this winter we’re already stronger than last year and the year prior,” she said. “So we’re feeling very optimistic about our longest haul travelers.
“The next group that will start to book is medium haul travelers, which includes the long-haul U.S. market. They generally book in October and November, which is when we’ll get a sense of how things are developing. We’ll be monitoring that period very carefully.”
Having a good snow year in 2006-07 is helping, as are efforts to promote value within the resort. According to Westbury, Tourism Whistler’s decision to concentrate on a few key regions within the U.S. is already having an impact.
“In terms of where we are with the U.S. market to date we were down a little bit over last year for the early part of the summer, but when you look at August we were actually up,” she said. “September is also shaping up pretty well, as is October, so we can be optimistic that if there is a shortfall it will be minimal and we’ll be right on track with last year.
“What we have been saying, and will continue to say, is that we need to make sure that as a community the value equation stacks up. That means having a world class product, reasonable prices, and a high level of service and focus on our guest experience.”
If the dollar and other factors do have an impact, Tourism Whistler and its members will respond, said Westbury.
“I can’t say at this point what we might or might not do, just that we will continue to monitor the situation and look for opportunities,” she said.
As cushioning, Westbury points out that the Canadian dollar is actually still a bargain for travelers from the U.K., Europe and Australia, all of which are growth markets for Whistler.
Whistler-Blackcomb is also watching the situation, but so far does not see any cause for concern with the dollar at par.
If the Canadian dollar continues to gain value against the greenback, Whistler-Blackcomb is prepared to take American cash at par and will encourage other businesses to do the same — a reversal of a common American tactic to take Canadian money at par to encourage tourism.
Stuart Rempel, vice president of marketing, says Whistler-Blackcomb is concerned that the dollar could drive American visitors away or lure Canadian visitors to the U.S., but says the trends look positive.
“There’s still lots of work to do, but if early indicators can give us any sense of how busy we’re going to be then this winter looks good,” he said.
“As it is we’ve just enjoyed two record summers of business, and in between the second-best winter on record — not just from us, but overall for the resort. We’ve had really positive results from the U.S., which makes me believe that as a resort we’ve kind of bucked the trend in terms of visitation to Canada. Numbers were down everywhere else, but our numbers were up.”
Rempel says that success is based on a number of factors.
“The main thing is that Whistler as a resort and its partners that sell Whistler have been totally focused on value in recent years,” he said. “In terms of our product, we’re number one in North America. We have the new Symphony chair, unreal experiences on both mountains, modern lifts, and unmatched village with shops and restaurants and hotels. Even at par we continue to offer great value compared to other major ski resorts or destinations like Hawaii or Mexico.”
Regionally, Rempel says that Whistler-Blackcomb and its partners have made an effort to offer discounted rooms and lift ticket rates, using programs like the Edge Cards, discounted tickets at 7-Eleven, and the corporate sales program.
“We do have a tiered pricing system… targeted to people in regional markets, and I would say our pricing is comparable to, say, the Okanagan, without making the longer drive,” he said.
“We are concerned about the dollar, which is why we need to continue to offer great products and great service, at a great price.”
According to Rempel, early bird sales of season passes are about 15 per cent ahead of last year, which was a record for season passes sold. The early bird special ends on Oct. 8. There has also been a lot of interest in the Edge Card from around the region, and he expects to sell more Spirit Passes than ever this season.
“The bottom line is that we can’t control the exchange rate or oil prices, but we can control guest experience and service and that’s what we need to focus on. We need to offer a good value, we can’t go out and overcharge and under-deliver on service,” he said. “From what I’m hearing, and what I’ve seen over the past year, we’re on the right track.”
