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The Rodney Dangerfield of industries

Earlier this year the federal and Ontario governments came to the aid of the auto industry with $4 billion in loans to General Motors and Chrysler, two-thirds from Ottawa and one-third from Ontario.

Earlier this year the federal and Ontario governments came to the aid of the auto industry with $4 billion in loans to General Motors and Chrysler, two-thirds from Ottawa and one-third from Ontario. The auto industry, it was argued, was vital to the Canadian economy and these companies were too big to fail.

And that may well be the case. The value of Canadian vehicles and parts totaled $26.2 billion at the end of 2006, or 2.2 per cent of overall gross domestic product (GDP), according to the Financial Post. Of course, the Canadian auto industry has shrunk dramatically since 2006 and, according to the Post's Nov. 19, 2008 story, now totals about two per cent of GDP.

In May the Canadian Tourism Commission issued its annual report. The report states: "Over the last five years the Canadian tourism sector outperformed the overall Canadian economy. In fact tourism activity in Canada represents two per cent of Canada's overall GDP.... In 2008, tourism's contribution to Canadian GDP reached $30.7 billion, up 7.3 per cent over 2007. "

But tourism is still the Rodney Dangerfield of industries in Canada. Governments of all stripes announce their support for tourism, throw money at specific high profile tourism operations, and then take actions (or don't take actions) that directly impede the overall tourism industry. The provincial government's harmonized sales tax we'll save for next week. For now, let's look at what the federal government has done to take advantage of the biggest marketing event for Canadian tourism in decades, the 2010 Olympics.

Last month, visa requirements were imposed on Mexican and Czech tourists coming to Canada, because the Canadian refugee system is too inefficient to handle the bogus claims that were coming from Mexicans and Czechs. Rather than fix the refugee system the easy solution was to make it more difficult for people to come to Canada.

In 2007 the Conservatives cancelled the GST visitor rebate program.

A few years ago Canada was close to obtaining Approved Destination Status with China, which would have meant Chinese tour groups could travel freely to Canada. But under Stephen Harper's government China has been snubbed, repeatedly. Any sort of tourism agreement between China and Canada is now years away.

While Statistics Canada reported in June that the number of day trips Americans have taken to Canada had declined by almost 70 per cent since 2001, little has been done to make border crossings more efficient. Perrin Beatty, a former Conservative cabinet minister and now the president of the Canadian Chamber of Commerce, predicted that the border congestion of 2006 and 2007 would return quickly as the economy recovers because not enough has been done to cut red tape and tie-ups.

Overlying this, of course, is a devastating recession and the U.S. government's Western Hemisphere Travel Initiative that requires everyone entering the U.S., including U.S. citizens, to have a passport. The passport requirement just came into effect July 1, so there isn't any data on how much it has hindered travel. But logic suggests it will be a detriment to tourism. Anecdotal evidence was available last weekend in Whistler, as three American scientists had to withdraw from the BioBlitz because they didn't bring their passports.

The Conservatives, to their credit, have increased funding for the Canadian Tourism Commission and, let us not forget, have supported the Olympics with millions of dollars. But a coordinated tourism strategy is some ways away. Right now they're working on the framework of the tourism strategy. The framework, according to Industry Canada, identifies four key priorities: encouraging stakeholder investments in tourism assets and products; facilitating ease of access and movement for travelers; increasing awareness of Canada as a tourist destination; and fostering an adequate supply of skills and labour and enhancing visitor experiences.

If those four priorities, and the actions initiated by the government to date, don't assure you that the feds are taking tourism seriously, an inter-departmental committee will be established at the assistant deputy-minister level "to promote coordination and accountability among federal organizations and to work towards advancing tourism priorities in support of the vision."

That would be the vision set forth in the framework that is eventually going to be strategy, presumably. And there will be an inter-departmental committee making sure it happens.

In June, after meeting with tourism industry leaders, the Prime Minister proclaimed: "Our Economic Action Plan makes several major investments to strengthen this vital sector. The next step (italics added) is to improve the coordination of our efforts and better sell Canada as a tourist destination for both domestic and international visitors."

For tourism the Economic Action Plan became known as the Marquee Tourism Events Program. Launched in April, it promises $100 million over two years for marquee tourism events that will help stimulate the Canadian tourism industry and the Canadian economy.

The deadline for applications was in May, so this year's money - a little over $33 million - has already been allocated. The allocation looks much like any distribution of funds by any federal government: $12.7 million to Ontario for 11 events; $10 million to Quebec for eight events; $3 million to Alberta for four events; $2.4 million to B.C. for three events (the PNE, Cloverdale Rodeo and the Vancouver International Jazz Festival); nearly $1.6 million to Prince Edward Island and Nova Scotia for three events; less than $500,000 to Manitoba for two events.

Oh yes, and $3 million Just For Laughs, the comedy festival and tour that is centred in Quebec and Ontario.

(Since the deadline, another $1.4 million has been allocated in the last two months.)

The point is not to disparage any of the jazz festivals, film festivals, folk festivals or other events that received funding. The point is that this is a simplistic way to throw money at the tourism industry and say you are doing something.

Sure the money will be well spent by the recipients, but if you're serious about supporting tourism, maybe you'd work on fixing the bottlenecks at the border crossings and airports. Maybe you'd look at reinstating the GST rebate program. Maybe you'd look at tax incentives that encourage Canadians to vacation within Canada.