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Jury out so far on impact of new U.S. passport rules

Strong U.S. dollar may be offsetting impact

It has been almost a month since new passport rules were introduced by the United States, but the jury is still out on what impact they are having on cross-border travel.

Some U.S. tour operators are reporting that travel to Canada is down and cite the passport rule as a cause.

But Tourism Whistler's Jeff McDonald said it is too soon to quantify the impact.

And, he said, it is almost impossible to separate this cause and effect at a time when the global economic crisis is causing travel to decline in double digits everywhere.

"We won't see a room nights report for June until near the end of July," said McDonald, TW's manager of corporate and member communications.

"It is going to be a challenging summer due to the global economic climate so it would be very difficult to attribute changes in business levels solely to that new regulation."

John Stachnik, vice president of the United States Tour Operators Association, and head of Illinois-based Mayflower Tours, said that the passport rules have affected his motor coach company's routes.

In some cases, he told the National Post recently, U.S. travelers are booking their trips inside the U.S. and foregoing travel to Canada.

Partner Mary Stachnik said, however, that the strong U.S. dollar is helping to offset the challenges of the new cross-border identification rule.

It would also be nice, she added if border guards would cut U.S. visitors some slack as everyone gets used to the new rules.

On Monday one of her clients on a coach tour from Seattle to B.C. had to cancel their trip after it was discovered that the person did not have any of the required identification.

"The traveller forgot their passport and they had to turn around," she said, adding that hospitality companies may need to call every client to make sure they are reading and understanding all the information on the new rules provided to them.

"That is not what we want to hear but that is the reality of the situation.

"Everybody has been able to get in and out with their driver's licence or state ID - that has been forever. So just because our government is saying this thing doesn't mean that people get it yet."

As of June 1 the new U.S. regulation, known as the Western Hemisphere Travel Initiative (WHTI) requires, U.S. citizens 16 years of age or over who re-enter the United States by land and sea to have a passport or other appropriate secure document like a NEXUS card, Free and Secure Trade (FAST) card, an enhanced driver's licence (EDL), or an enhanced identification card (EIC). Foreign citizens entering the United States must also have one of these secure documents.

If the new initiative is responsible for a dip in U.S. visits to Canada in the future it will likely just continue a trend that Statistics Canada has noted since 2001: Same day trips from the U.S. to Canada have fallen by almost 70 per cent.

McDonald said Tourism Whistler has been preparing for the WHTI for some time and has been reaching out to members and visitors to make sure they are aware of the impacts.

"We have done some messaging about it to our members," he said.

"I think any change requires a period of adjustment and education but going forward we are confident that people and businesses in the village and visitors will respond to the change and adapt to it in a positive way."

He also feels that Whistler may be cushioned somewhat as so many of the type of visitors who come here are likely to already have a passport.

"Many of Whistler's visitors, in fact I would say the majority of Whistler visitors, are not affected by this because they are already in line with the regulations," said McDonald.

According to the most recent Canadian Tourism Commission quarterly report, visits to Canada are down 3.8 per cent from the previous quarter.

It also states: "(The International Air Transport Association) reports that the world's airlines lost approximately $8 billion in 2008 with $4 billion in losses coming in the fourth quarter and airline stocks are trading more than 40 per cent lower since January 1, 2009."

According to the report, the U.S. State Department is reporting that passport applications are down 25 per cent for the fiscal year ending in September 2008. The main reason given is the weak U.S. economy and few Americans travelling overseas.

A Harris Interactive survey reported that a majority (55 per cent) of all Americans would be affected by current economic downturn, but that 38 per cent of all gay & lesbian travelers are less likely to cut back on their personal travel plans than their heterosexual counterparts.

A Ypartnership survey reported that 58 per cent of affluent travelers are expecting to take the same number of vacation trips in 2009 as they did in 2008 - an average of just under five leisure trips a year.

The CTC also reports that a growing number of Canadians are planning to stay closer to home this summer, according to the latest Travel Intentions Survey by The Conference Board of Canada.

An online panel conducted in April 2009 revealed that 79.2 per cent of Canadian respondents intended to take a summer holiday, which was similar to the results of an online panel conducted a year earlier.

However, the number of Canadians planning to stay in Canada for their longest summer vacation this year was significantly higher than in last year's survey.

Conversely, trip intentions for holidays to the United States and international destinations registered a sharp decline.