In contrast, overnight travel to the United States by Canadian residents rose 1.7% to its highest monthly level since December 1993. Canadians took over 1.3 million overnight trips in August. Overnight car travel led the way with a 2.5% increase followed by overnight plane travel, up 1.3%. Overnight travel by other means fell 2.2% compared to July.

Overall, Canadians took 3.3 million trips to the United States in August, up 0.3% compared to July, while travel by American residents to Canada declined 0.9% to less than 2.4 million trips.

Travel to countries other than the United States dropped for the second consecutive month, as 551,000 Canadian residents took trips to overseas countries. This follows the record high set in June when 566,000 Canadians took overseas trips.

In August, travel to Canada from overseas countries rose 2.3% compared to the previous month, as 377,000 residents of overseas countries took trips to Canada.

Among Canada's top 12 overseas markets, 8 posted increases in August, including the top 6 markets. Germany recorded the largest increase (+6.3%) in travel to Canada while Hong Kong had the largest decrease (-8.1%).

The Canadian dollar was worth 89.4 US cents on average in August, up 1.0% compared to July. The loonie gained against the Japanese yen, declined against the British pound sterling and was unchanged against the euro.

TORONTO - Lyle Hall, Chair of the Board of Directors of Tourism Toronto, issued the following statement on October 12, 2006.

This morning Tourism Toronto's Executive Committee met and reluctantly accepted the resignation of Bruce MacMillan from his position as President and CEO. He has accepted the role of President and CEO with Meeting Professionals International (MPI) in Dallas, Texas beginning in December.

We hired Bruce away from MPI almost four years ago where he previously held the role of Vice President, Marketing. At that time, in late 2002, Bruce joined us with a mandate to rebuild our organization on a number of fronts in order to more effectively lead and make a difference for the community's tourism industry.

No one could have then imagined the significant challenges that would manifest for our industry and membership in the coming years but through it all, our organization has made substantial advances on all fronts: a landmark dedicated funding source, almost 1,100 members - a 50% growth since 2002, a remarkable new team, new regional, provincial and national marketing partnerships and a new brand platform. These changes have helped the organization earn accolades by our clients as one of the top five convention and visitor bureaus in North America and diversify our visitor base by growing strategic new markets.

As an organization we are well-positioned to address any challenges the future might hold and be successful.

Bruce will work the Board and me in the coming weeks to ensure an orderly transition of association business. We will immediately commence a search for a new CEO, recognizing that this will be neither an easy nor a quick process. We are committed to finding the right individual to build on the recent success of the organization.

On behalf of the Board I would like to thank Bruce for his hard work and dedication since 2003 and know that he will continue to make a difference in his new role.

We wish Bruce, his wife Judy and their children continued success. Lyle Hall Chair, Board of Directors

Whales Close Enough to Touch Offer the Thrill of a Lifetime

La Paz, Mexico - Each year in early autumn, one of nature’s most delightful signs of seasonal change occurs -- the migration of hundreds of whales from the frigid waters of the arctic to the warm, calm waters surrounding the Baja Peninsula. And, from January – March, there is no better place to view such a spectacular event than Baja California Sur.

These magnificent creatures complete the 12,000-mile journey by late December and stay until late March, when they repeat their journey. The whales make their way south at an average speed of four miles per hour. They travel continuously during the day and on moonlit nights, while resting for a few hours on moonless, dark evenings.

Baja’s Magdalena Bay is a natural preserve for gray whales arriving to fulfill their biological cycles. Ideal climate, shallow waters, salinity and abundant marine life make the bays and lagoons of Baja California Sur the perfect place for whales to birth and rear their young. The female whales, impregnated the year before, arrive first. The males and younger whales come soon thereafter. The primary breeding areas are Magdalena Bay, San Ignacio, Vizcaino Preserve, and Laguna Ojo de Liebre. It is in these tranquil, warm waters that entice the females to give birth and nurse their young calves in these coastal reserves as well as teach them to swim and prepare them for the long journey back to the frigid waters in the north.

The six-month, round trip sojourn is the longest trip made by any animal in the world. Migrating whales travel half the year and rest the other half. Scientific studies have shown that 90 percent of the migrating whales travel south to the waters of Baja California Sur, while the remaining 10 percent make their way to the waters off Korea.

Whales have a unique internal clock. There is never more than a five-day delay from the beginning of their journey to their arrival off the Baja Peninsula. The breeding grounds are primarily on the Pacific side, but some whales travel around the cape to the Sea of Cortes.

Of the 11 species of whales found worldwide, eight venture to the waters of the Baja lagoons, including Minke, Bryde, Fin, Sei, Humpback, Beluga, Gray and Blue. The most common are small Minke, but the crowds come to view the colossal Grays.

There are several ways to observe the magnificent cetaceans in their natural habitat. Many local tour companies also offer whale-watching trips that provide an up close and personal introduction to these gentle giants. Small fishing boats called “pangas” take the whale watchers out among the whales. The sweet-tempered leviathans often approach the boats and welcome a friendly rub from humans. Hotels and marinas throughout Baja California Sur can arrange whale watching excursions for their guests.

Eco-tourists, families, honeymooners, mature travelers, artists, photographers, and others delight in their discovery of Baja California Sur. Within convenient driving distance from Los Cabos and with non-stop flights or connecting service to La Paz and Loreto from numerous U.S. and Mexican cities, Baja California Sur is both accessible and exotic. For more information about Baja California Sur call (877) MY-BAJA SUR or visit www.mybajasur.com.

The White House Conference on Travel & Tourism, which was held more than ten years ago, and the creation in 2005 of the US Travel & Tourism Advisory Board (TTAB), operated through the US Department of Commerce, were timid steps in the right direction. Yet resolutions made at the conference have not been implemented and the TTAB has not been empowered to take any actions. Some progress has been made as a result of the Board’s recommendations to the Bush Administration. Restoring America’s Travel Brand: A National Strategy to Compete for International Visitors addresses the barriers that impede international visitors from taking a trip to the USA. The TTAB should be provided with the necessary resources and co-operation from the federal government to assist in achieving the goals laid out in this strategy.

In order to mobilize all the players and give substance to the Rice-Chertoff initiative, we propose that US stakeholders from both government – federal and state – and the private sector meet at a nationwide conference around the theme Reconquer Markets, Regain Confidence. The main aim of this conference should be to develop a three-year agenda with clearly defined objectives geared towards regaining the status of the USA as the most important Travel & Tourism destination in the world.

Security is a major challenge for the Travel & Tourism industry, yet seamless access to transport is critical for the future growth of the industry. Five years after 9/11, the traveller has accepted the need for enhanced security measures. The US Government must focus and finish its plans to introduce new security measures based on biometric technology. This will not only boost public confidence but will also provide a positive image of the USA, thanks to the technology engaged for the benefit of both visitors and resident citizens. Leaders of the security industry will play an important role in the proposed nationwide conference.

Since the US Government has fully recognized the potential of Travel & Tourism and is working towards finding the delicate balance between security at borders and efficient travel across those borders, it is time to embrace a national marketing strategy. That strategy should mandate a significant national promotional budget directed towards those markets that represent the greatest potential for the destination. WTTC estimates that US$200 million would be a realistic starting point from which a marketing campaign could make a significant impact.

For the entire Manifesto document, please click here: http://www.wttc.org/publications/pdf/US%20Manifesto.pdf.

All provinces posted higher sales except Prince Edward Island (-2.2%) and New Brunswick (-1.6%). For the fourth consecutive month, the largest year-over-year increases were recorded in Saskatchewan (+11.0%) and Alberta (+9.9%). The strong growth in sales in Alberta was in large part due to Alberta's surging economy over the last four years, a strong labour market where the wages are the highest in Canada, and the steady increase in Alberta's population since 2001.

The increase in sales, at the national level, was due to higher sales at limited service restaurants (+8.1%). Food service contractors and caterers also did well with respective increases of 8.7% and 2.0%. Sales for the full service restaurant sector remained stable (-0.2%) while the drinking places sector declined for an 11th straight month in July (-6.0%).

TORONTO - Toronto's rich theatre history is being tarnished yet again by Blue Man Group, ironically by the very fact that it is closing. "Placing the blame for the show's failure on our city instead of squarely where it belongs, with the show's deliberate inability to make itself part of our community, continues a pattern of disrespect for Toronto evidenced by Blue Man from day one," says Susan Wallace, Executive Director of Canadian Actors' Equity Association.

The closing of Blue Man Group is instead evidence of Toronto's astute theatre audiences choosing not to support a production that eschewed this city's established professional associations and unions of actors, musicians and stage technicians. Blue Man's efforts to join the Toronto theatre "family" have been seen for what they truly are - attempts to break-up Toronto's close-knit theatrical community.

The theatre-going spirit of Toronto remains strong and vibrant, evidenced by the recent overwhelmingly positive response to the Canadian's Opera Company debut at the Four Seasons Centre for the Performing Arts, a spate of recent local theatre season openings and the city's excitement on the eve of "Nuit Blanche".

Artists and technicians eagerly await the chance to perform and work in the well-equipped and perfectly situated Panasonic Theatre venue. Blue Man's closure will allow for this beautiful and much-needed theatre to become a venue that Toronto can be truly proud of.

Blue Man is not only experiencing labour woes in Toronto but also south of the border.

The Las Vegas, Nevada, IATSE local voted overwhelming to support a union organizing campaign, but Blue Man then refused to meet at the bargaining table. On September 14, the National Labor Relations Board in Washington D.C. issued an unfair labour practice against Blue Man Group.

TORONTO- On September 28, Tourism Toronto announced that it has named Leo Burnett Canada as its new lead marketing agency working with Starcom Mediavest Group as its media partner.

"The Leo Burnett team - its people and ideas - stood out as the ideal partner to help us present Toronto as an inspiring urban destination in a highly competitive environment," said Bruce MacMillan, President and CEO of Tourism Toronto.

In making its selection, Tourism Toronto noted Leo Burnett's integrity and longevity with clients and its strong level of integration.

"We recognized their strong record of carrying big ideas through a wide range of executions - print and broadcast advertising, online and events," said Joel Peters, Tourism Toronto's Chief Marketing Officer. Launched last year, Toronto's new "Unlimited" brand platform is built around presenting Toronto as a creative city energized by diverse and open-minded people.

"This is a dream assignment for any ad agency, and we're thrilled to have earned the right to work with Tourism Toronto," said David Moore, President and CEO of Leo Burnett Canada. "Toronto has all the elements it needs to succeed in attracting visitors, and we're excited to help get that story told."

Today's announcement concludes a formal agency review process by Tourism Toronto. The planned three-year review was undertaken, in part, to consolidate agency relationships with a single marketing partner. Tourism Toronto retained Level 5 Strategic Brand Advisors to advise on the search process and help focus the search criteria and candidates.

"The tourism industry faces a profoundly changing marketplace. Traditional markets are in decline while new markets are emerging and showing long-term promise. We believe we have the right team to spark curiosity in new markets and reignite our base to build a more robust tourism business for our members and community," said MacMillan.

Turnaround of international tourism spending

Spending by international visitors to Canada regained lost ground in the second quarter, growing 1.6% after having slipped 8.9% over the previous five quarters.

A 2.5% increase in the number of overnight visitors from the United States, the first increase in seven quarters, was the major factor behind the turnaround. On average, overnight visitors stay three or four days in the country and spend eight times as much as same-day visitors.

The number of same-day visitors to Canada from the United States, in contrast, fell 2.3%. This resulted in lower spending by international visitors on fuel and on vehicle repairs and parts.

Slowdown of domestic tourism spending

The pace of domestic spending on tourism in Canada slowed to 0.6%, the weakest quarterly gain in two years. Declines were registered notably in spending on accommodation, food and beverage services, and recreation and entertainment.

In contrast to the weakness on the domestic front, the number of Canadians travelling outside the country increased for the fourth quarter in a row. This contributed to a solid 3.7% hike in Canadians' spending on passenger air transport, which bolstered domestic tourism demand (fares paid by Canadians travelling abroad on Canadian carriers are included in domestic tourism spending).

Increase in air transportation spending

Total tourism spending on air transportation, including that by residents and non-residents, was up 2.4% in the second quarter, reflecting the increase in domestic spending on passenger air transportation. Outlays on passenger air transportation by international visitors on the other hand declined 4.1%.

Spending on other tourism commodities (excluding transportation) moderated in the second quarter. Total tourism spending on accommodation services, food and beverages services and other tourism commodities (which includes recreation and entertainment and travel agents) was flat.

Tourism employment continues to grow

The number of jobs attributable to tourism was up 0.7% in the second quarter of 2006. Much of the strength came from increased hiring in the accommodation industry, where tourism jobs were up 1.9%, and in food and beverage services (+0.4%).

Tourism gross domestic product in line with overall economy

Tourism gross domestic product expanded 0.5% in the second quarter, about half the pace (+1.1%) registered in the first quarter and in line with the overall economy. The transportation industry continued to be the main source of strength, posting its 12th consecutive quarterly gain in tourism gross domestic product.

Looking ahead

Early indicators are mixed for the third quarter of 2006. According to the Business Conditions Survey for the Traveller Accommodation industries, almost as many hotel operators (27%) expect that occupancy rates will be lower in the third quarter, compared to one year ago, as those who expect rates will be higher (29%). On the other hand, hoteliers expecting room rates to rise (40%) outnumbered two-to-one those expecting them to fall (18%).

National tourism indicators
	Second quarter 2005	Third quarter 2005	Fourth quarter 2005	First quarter 2006	Second quarter 2006	First to second quarter 2006
	millions of dollars at 1997 prices, seasonally adjusted					% change
Total tourism expenditures
Tourism demand in Canada	13,651	13,719	13,847	14,014	14,130	0.8
Tourism demand by non-residents	3,664	3,581	3,559	3,489	3,544	1.6
Tourism domestic demand	9,987	10,138	10,287	10,525	10,586	0.6
Transportation
Tourism demand in Canada	5,082	5,118	5,162	5,227	5,322	1.8
Tourism demand by non-residents	946	918	918	889	868	-2.5
Tourism domestic demand	4,136	4,200	4,245	4,338	4,455	2.7
Accommodation
Tourism demand in Canada	1,914	1,916	1,934	1,956	1,957	0.1
Tourism demand by non-residents	852	830	821	810	832	2.7
Tourism domestic demand	1,062	1,086	1,114	1,146	1,126	-1.8
Food and beverage services
Tourism demand in Canada	1,906	1,908	1,912	1,935	1,937	0.1
Tourism demand by non-residents	583	575	563	551	567	2.9
Tourism domestic demand	1,324	1,332	1,349	1,384	1,369	-1.1
Other tourism commodities
Tourism demand in Canada	2,304	2,324	2,360	2,392	2,391	-0.1
Tourism demand by non-residents	483	476	476	463	471	1.7
Tourism domestic demand	1,821	1,848	1,883	1,929	1,920	-0.5
Other commodities
Tourism demand in Canada	2,445	2,453	2,479	2,503	2,524	0.8
Tourism demand by non-residents	800	782	782	775	806	4.1
Tourism domestic demand	1,644	1,671	1,697	1,729	1,717	-0.7

National tourism indicators
	Second quarter 2005	Third quarter 2005	Fourth quarter 2005	First quarter 2006	Second quarter 2006	First to second quarter 2006
	millions of dollars at current prices, seasonally adjusted					% change
Total tourism expenditures
Tourism demand in Canada	15,567	15,940	16,078	16,298	16,694	2.4
Tourism demand by non-residents	4,407	4,347	4,321	4,243	4,347	2.5
Tourism domestic demand	11,160	11,593	11,758	12,055	12,347	2.4
Transportation
Tourism demand in Canada	5,701	5,979	6,022	6,097	6,432	5.5
Tourism demand by non-residents	1,233	1,218	1,216	1,175	1,174	-0.1
Tourism domestic demand	4,468	4,761	4,806	4,921	5,258	6.9
Accommodation
Tourism demand in Canada	2,376	2,400	2,431	2,485	2,513	1.1
Tourism demand by non-residents	1,057	1,039	1,031	1,027	1,066	3.9
Tourism domestic demand	1,319	1,361	1,400	1,458	1,446	-0.8
Food and beverage services
Tourism demand in Canada	2,324	2,342	2,363	2,410	2,428	0.7
Tourism demand by non-residents	711	706	696	687	712	3.6
Tourism domestic demand	1,614	1,635	1,667	1,723	1,716	-0.4
Other tourism commodities
Tourism demand in Canada	2,608	2,647	2,678	2,707	2,703	-0.1
Tourism demand by non-residents	571	566	566	553	563	1.8
Tourism domestic demand	2,037	2,080	2,111	2,154	2,140	-0.6
Other commodities
Tourism demand in Canada	2,558	2,572	2,586	2,600	2,618	0.7
Tourism demand by non-residents	835	817	812	801	832	3.9
Tourism domestic demand	1,723	1,754	1,773	1,799	1,786	-0.7

Note to readers

Levels and shares of tourism spending are expressed in current dollars, adjusted for seasonal variations. Growth rates of tourism spending and gross domestic product are expressed in real terms (i.e., adjusted for price changes) as well as adjusted for seasonal variations, unless otherwise indicated. Employment data are also seasonally adjusted. Associated percentage changes are presented at quarterly rates.

Funding Provided To Promote Great Lakes Cruising To International Ship Owners

TORONTO - With its picturesque ports and interesting history, the Great Lakes offer visitors an outstanding cruising experience and the Ontario government is providing $60,000 to promote this destination to international ship owners and operators, Tourism Minister Jim Bradley announced September 24.

"The cruising industry is growing at a remarkable rate, and we want travelers from around the world to know that the Great Lakes is an exciting destination for a summer cruise holiday," said Bradley. "We are delighted to support the growth of Great Lakes cruising as a novel way for visitors to explore Ontario."

Funding is being provided to Cruise Ontario and the Great Lakes Cruising Coalition to host a week-long familiarization tour of the Great Lakes region for international ship owners and operators. The tour begins in Toronto and includes stops at Parry Sound, Little Current, Mackinac Island, Thunder Bay and Sault Ste Marie, where the owners and operators will take the Agawa Canyon Tour Train ride to see Northern Ontario's beautiful, rugged landscape.

"I am pleased that the Ontario government recognizes the Great Lakes cruising industry as an important contributor to building tourism in this province," said Stephen Burnett, executive director of Cruise Ontario. "By supporting this familiarization tour for international ship owners and operators, the province is helping to put the Great Lakes on the map as a top destination for international travellers."

From 1980 to 2004, the North American cruise market grew by more than eight per cent annually, from 1.4 million to more than nine million passengers. Consumers are increasingly demanding closer-to-home vacations. With more than one hundred million people living within one day's drive of a Great Lakes port, cruising in Ontario is a convenient and accessible way to travel for families. The cruising season typically runs from May until October.

"The cruising industry helps create more jobs and contributes to our economy in port communities," said Bradley. "We want international ship owners and tour operators to know that Ontario is open for business and we look forward to welcoming their passengers."

<< Other recent initiatives by the Ontario government aimed at boosting tourism include:

- Investing $5.3 million annually to help increase tourism in Northern Ontario

- Investing $1.9 million in 84 festivals and events across Ontario so far this year

- Promoting Ontario to an emerging Chinese tourism market with the launch of a new Chinese-language tourism website and the North American premiere of the Chinese Lantern Festival at Ontario Place

- Investing $5 million in a cultural tourism advertising campaign, to increase awareness of Ontario as a premier destination for cultural attractions and events, from theatre packages to culinary getaways.

Same day and overnight data for Canadian residents returning from the United States by commercial plane, private plane, train, commercial boat or other methods (for example, by foot or motorcycle) and any summation of these not seasonally adjusted series have been revised for each month of the fourth quarter of 2005 and the first quarter of 2006.