ISSUE FOCUS - TIAC Budget Analysis 2010
On Thursday, March 4, Finance Minister Jim Flaherty unveiled the government’s fiscal priorities for the near future in the 2010 Budget.
Overall, the 2010 budget confirms $19 billion in spending for the second year of the federal stimulus program, contains limited new spending aimed at driving growth and job creation, and puts significant emphasis on restoring fiscal balance over the medium term.
Among the items in the Budget relating specifically to the tourism sector are:
Canadian Tourism Commission – Decreases to Base Funding: As part of the ongoing Strategic Review of spending, the Government identified in Budget 2010 savings from the base funding for the Canadian Tourism Commission. This decrease will amount to a reduction of $900,000 in 2010, $4.2M in 2011 and ongoing.
TIAC understands that, within the context of this budget, the CTC is one of many agencies and departments who have had their funding reviewed and subsequently decreased. The Strategic Review of spending is undertaken by government within their departments and agencies on a rotating basis. In many instances, this year being no exception, agencies and department were slotted to find internal savings and return those savings to ‘general revenues’ to fund new programs outlined in the budget.
However, TIAC once again wishes to reiterate its commitment to a strong, dynamic and well-funded national destination marketing organization. TIAC firmly believes that if the CTC is to adequately promote Canada to both our traditional markets and to new and emerging markets like China, India and Brazil, the organization will require enhanced, sustainable and long-term increases to its funding base. TIAC will continue to present the business case for additional funding to enhance the CTC’s ability to compete for international tourism receipts.
Stimulus Spending Carried Forward: TIAC is pleased to note that many of the stimulus projects identified in last year’s Budget have been carried forward for a second year. These include the second years of the two-year commitments to the Marquee Tourism Events Program, the CTC’s domestic marketing campaign, investments in Canada’s National Parks, the twinning of the highway through Banff National Park and investments in a new system of recreational trails.
New Infrastructure Investment: The tourism industry will also benefit from new investments in marine transportation infrastructure. Marine Atlantic will receive $175 million over two years, while other Atlantic Canadian ferry services will receive a total of $28 million over the next two years. These investments will increase the quality and reliability of ferry services that support travel in the region.
The government has committed $87 million to increasing border efficiency and security. This includes enhancements to trusted traveler programs such as NEXUS that enable travelers to navigate the Canada-US border more quickly and easily.
Air Travelers Security Charge: The government re-announced in the budget the $1.5 billion commitment of funds over five years to ensure Canada is in line with international air security screening regimes. This initiative will be funded through an increase in the Air Travelers Security Charge effective April 1, 2010. This will increase the cost of flying for both domestic and international travel in Canada.
For more information please contact Christopher Jones, TIAC Vice-President, Public Affairs at cjones@tiac.travel or 613-238-7557. |
