"Airport Competitiveness a Key Link in the Tourism Value Chain"

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"Airport Competitiveness a Key Link in the Tourism ValueChain"

Cost competitiveness, air access and border facilitation are threekey areas, CAC tells House of Commons Committee

OTTAWA - "Canada's airports are a key part of Canada's tourismvalue chain - a part that must be competitive in order for Canadato be competitive in the tourism business," Canadian AirportsCouncil President and CEO Jim Facette told members of the House ofCommons Standing Committee on Industry, Science and Technology.

"As gateways to the communities they serve, Canada's airportshave an integral role in the promoting and furthering of tourism inthis country. We are a key part of Canada's tourism valuechain," said Mr. Facette. "In order for Canada to becompetitive in the tourism business, each link in the value chainmust be competitive, efficiently operated and customerfocused."

The comments came in a presentation to the House committee as itstudies Canada's competitiveness as a world tourism destination.According to a recent report from the Tourism Industry Associationof Canada (TIAC), Canada's travel deficit has ballooned to $10.3billion in 2007 and the latest quarterly numbers for 2008 show acontinued deterioration.

<< The CAC outlined three key areas impacting airportcompetitiveness today:

- Cost Competitiveness - Canada's airports pay nearly $300 milliona year to the federal government in airport rent. While investingmore than $9.5 billion in self-funded infrastructure improvementsover the past 15 years, they have spent $2.5 billion in rent.

Airports generate income in to the federal treasury through jobcreation, both direct and indirect, and attracting tourists andinvestment. Airports in Canada are committed to passing along anysavings from rent relief to their users, be it the airlines orpassengers.

- Air Access - Canada needs better air services in order to allowmore carriers to respond to market demand for competitiveinternational air service to Canada. While the U.S. has 92 OpenSkies Agreements, Canada has just five. Airports contend thatsuccess in the ongoing talks between Canada and the European Union- Canada's second biggest source of tourists - is vital to growingCanada's tourism base.

- Border Facilitation - Long line-ups to border services in airportarrivals halls leave a terribly poor impression with tourists toCanada. It is essential that Canada Border Services Agency have theresources it needs to adequately staff the needs of Canada'sairports - large and small. Airports are actively marketing theircommunities to airlines of the world but need to be able to provideborder services to serve new flights. >>

"Working with their local and provincial tourism sectors,Canada's airports today are actively promoting their communities inthe U.S. and overseas," said Mr. Facette. "They attendair service trade shows, they're meeting with air carriers fromaround the world, and they are making a case for Canada. We needfederal policies that encourage more tourists not ones that willresult in a less competitive business."