Morgan Westcott

Overview

The transportation sector is vital to the success of our industry. Put simply, if we can’t move people from place to place — whether by air, sea, or land — we don’t have an industry. This chapter takes a broad approach, covering each segment of the transportation sector globally, nationally, and at home in British Columbia.

Let’s start our review by taking a look at the airline industry.

Air

According to the International Air Transport Association (IATA), in 2014, airlines transported 3.3 billion people across a network of almost 50,000 routes generating 58 million jobs and $2.4 trillion in business activity (International Air Transport Association, 2014a).

The first commercial (paid) passenger flight took place in Florida on New Year’s Day 1914 as a single person was transported across Tampa Bay (IATA 2014a). There have been a number of international aviation milestones since that flight, as illustrated in Table 2.1.

Rules and Regulations

Aviation is a highly regulated industry as it crosses many government jurisdictions. This section explores key airline regulations in more detail.

Open Skies

Figure 2.1 Open skies

The term open skies refers to policies that allow national airlines to fly to, and above, other countries. These policies lift restrictions where countries have good relationships, freeing up the travel of passengers and goods.

Canada’s approach to open skies is the Blue Sky Policy, first implemented in 2006. The National Airlines Council of Canada (NACC) and Canadian Airports Council (CAC) support the Blue Sky Policy.

While opening up air transport agreements (ATAs) with other jurisdictions is important, the Canadian government doesn’t provide blanket arrangements, instead negotiating “when it is in Canada’s overall interest to do so” (Government of Canada, 2014a). Some suggest the government should be more liberal with air access so more competitors can enter the market, potentially attracting more visitors to the country (Gill and Raynor, 2003).

Taxes and Fees

According to a 2012 Senate study on issues related to the Canadian airline industry, Canadian travellers are being grounded by airline fees, fuel surcharges, security taxes, airport improvement fees, and other additional costs. Airports are charged rental fees by the Canadian government ($4.8 billion from 1992 to 2004), which they pass on to the airlines, who in turn transfer the costs to travellers. Some think eliminating rental fees would make Canadian airports more competitive, and view rental and other fees as the reason 5 million Canadians went south of the border for flights in 2013, where passenger fees are 230% lower than in Canada (Hermiston and Steele, 2014).

Profitability

Running an airline is like having a baby: fun to conceive, but hell to deliver. – C. E. Woolman, principal founder of Delta Air Lines (The Economist, 2011).

As the quote above suggests, airlines are faced with many challenges. In addition to operating in a strict regulatory environment, airlines yield extremely small profit margins. In 2013 the industry accumulated $10.6 billion worldwide in revenues, although global profit margins were just 1.5% (IATA, 2014a). To put that into perspective, while the average airline earned 1.5%, Apple’s profit margins were almost 14 times that at 20.15% (YCharts, 2014).

Passenger Load Factor

Key to airline profitability is passenger load factor, which relates how efficiently planes are being used. Load factor for a single flight can be determined by dividing the number of passengers by the number of seats.

Figure 2.2 An Airbus 380-800 takes off

Passenger load factors in the airline industry reached a record high in 2013, at just under 80%, which was attributed to increased volumes and strong capacity management in key sectors (IATA, 2104a). One way of increasing capacity is by using larger aircraft. For instance, the introduction of the Airbus A380 model has allowed up to 40% more capacity per flight, carrying up to 525 passengers in a three-class configuration, and up to 853 in a single-class configuration (Airbus, 2014). 

Low-Cost Carriers

Another key factor in profitability is the airline’s business model. In 1971, Southwest Airlines became the first low-cost carrier (LCC), revolutionizing the industry. The LCC model involved charging for all extras such as reserved seating, baggage, and on-board service, and cutting costs by offering less legroom and using non-unionized workforces. Typically, an LCC has to run with 90% full planes to break even (Owram, 2014). The high-volume, lower-service system is what we have become used to today, but at the time it was introduced, it was groundbreaking.

Ancillary Revenues

The LCC model, combined with tight margins, led to today’s climate where passengers are charged for value-added services such as meals, headsets, blankets, seat selection, and bag checking. These are known in the industry as ancillary revenues. Profits from these extras rose from $36 billion in 2012 to $42 billion in 2013, or more than $13 a passenger. An average net profit of only $3.39 per passenger was retained by airlines (IATA, 2014a).

As you can see, airlines must strive to maintain profitability, despite thin margins, in an environment with heavy government regulation. But at the same time, they must be responsible for the safety of their passengers.

Air Safety and Security

IATA encourages airlines to view safety from a number of points, including reducing operational risks such as plane crashes, by running safety audit programs. They also advocate for improved infrastructure such as runway upgrades and training for pilots and other crew. Finally, they strive to understand emerging safety issues, including the outsourcing of operations to third-party companies (IATA, 2014a).

In terms of security, coordination between programs such as the Interpol Stolen and Lost Travel Documents initiative and other databases is critical (IATA, 2014a). As reservations and management systems become increasingly computerized, cyber-security becomes a top concern for airlines, who must protect IT (information technology) because their databases contain information about flights and passengers’ personal information. Unruly passengers are also a cause of concern, with over 8,000 incidents reported worldwide every year (IATA, 2014a).

Now that we have a better sense of the complexities of the industry, let’s take a closer look at air travel in Canada and the regional air industry.

Canada’s Air Industry

Figure 2.3 An Air Canada Jazz plane readies for takeoff

In 1937, Trans-Canada Air Lines (later to become Air Canada) was launched with two passenger planes and one mail plane. By the 1950s, Canadian Pacific Airlines (CP Air) entered the marketplace, and an economic boom led to more affordable tickets. Around this time CP Air (which became Canadian Airlines in 1987) launched flights to Australia, Japan, and South America (Canadian Geographic, 2000). In 2001, Canadian Airlines International was acquired by Air Canada (Aviation Safety Network, 2012).

In 1996, the marketplace changed drastically with the entry of an Alberta-based LCC called WestJet.  By 2014, WestJet had grown to become Canada’s second major airline with more than 9,700 staff flying to 88 destinations across domestic and international networks (WestJet, 2014).

As it grew, WestJet began to offer services such as premium economy class and a frequent-flyer program, launched a regional carrier, and introduced transatlantic flights with service to Dublin, Ireland, evolving away from the LCC model (Owram, 2014). With those changes, and in the absence of  a true low-cost carrier, in 2014, some other companies, such as Canada Jetlines and JetNaked, sought to raise upward of $50 million to bring their airlines to market.

However, outside of Air Canada and WestJet, airlines in Canada have found it very challenging to survive, and some examples of LCC startups like Harmony Airways and Jetsgo have fallen by the wayside.

Challenges to Canada’s Air Industry

When looking at these failed airlines in Canada, three key challenges to success can be identified (Owram, 2014):

1. Canada’s large geographical size and sparse population mean relatively low demand for flights.
2. Canada’s higher taxes and fees compared with other jurisdictions (such as the United States) make pricing less competitive.
3. Canada’s two dominant airlines are able to price new entrants out of the market.

In addition to these factors, the European debt crisis, a slow US economic recovery, more cautious spending by Canadians, and fuel price increases led to a $900 million industry loss in 2011 (Conference Board of Canada, 2012) prior to the industry returning to profitability in 2013.

Take a Closer Look: One Size Doesn’t Fit All

In 2013, a special report to the Canadian Senate explored the concept that one size doesn’t fit all when it comes to competitiveness in the country’s airline industry. The report contains general observations about the industry as well as a number of recommendations to stakeholders, including airport managers. Read the report: “One Size Doesn’t Fit All: the Future Growth and Competitiveness of Canadian Air Travel” [PDF]: www.parl.gc.ca/Content/SEN/Committee/411/trcm/rep/rep08apr13-e.pdf

Today, the Canadian airline industry directly employs roughly 141,000 people and is worth $34.9 billion in gross domestic product. It supports 330 jobs for every 100,000 passengers and contributes over $12 billion to federal and provincial treasuries, including over $7 billion in taxes (Gill and Raynor, 2013).

Let’s now turn our attention to the regional air market, focusing on British Columbia.

Regional Airlines

Transportation in BC has always been difficult: incomplete road systems and rugged terrain historically made travel between communities almost impossible. In 1927, a number of businessmen promised to change all that when they opened British Columbia Airways in Victoria with the purchase of a commercial airliner (Canadian Museum of Flight, 2014).

As commercial flying became more popular, and the province grew, regional airports started to spring up around BC as a means of delivering surveying equipment, forestry supplies, and workers. Many of these airports were legacies of Canada’s strategic position for the military. Fort Nelson’s airport, for instance, was established so the US Air Force could fuel aircraft bound for Russia in World War II (Northern Rockies Regional Airport, 2014).

In 1994, Transport Canada transferred all 150 airports under its control to local authorities under the National Airports Policy (NAP). This policy is considered to have been a turning point in the privatization of the airline industry in Canada. A 2004 study showed that after 10 years, 48% of these airports were not able to cover annual costs of operation, leading to concerns about the viability of small local airports in particular (InterVISTAS, 2005).

In 2012, the BC government released its aviation strategy, entitled Connecting with the World, which acknowledged the economic challenges for airports large and small. These range from Vancouver International Airport (YVR), which supports more than 61,000 jobs and creates more than $11 billion in economic activity each year, through to regional and local airports. The strategy outlined a framework to remove barriers to aviation growth including potentially eliminating the two-cent-per-litre International Aviation Fuel Tax (British Columbia Ministry of Transportation and Infrastructure, 2012).

Given a highly complex regulatory environment, razor-thin profit margins, and intense competition, the airline industry is constantly changing and evolving at global, national, and regional levels. But one thing is certain: air travel is here to stay.

On the other hand, the rail industry has been faced with significant declines since air travel became accessible to the masses. Let’s learn more about this sector.

Rail

Figure 2.4 CPR Mount Steven House in Field, BC (1909)

In Chapter 1, we looked at the historic significance of railways as they laid the foundation for the modern tourism industry. That’s because in many places, including Canada and British Columbia, trains were an unprecedented way to move people across vast expanses of land. With the Canadian Pacific company opening up hotels in major cities, BC’s hospitality sector was born and a golden age of rail travel emerged.

Profitability

However, starting in the 1940s and 1950s, the passenger rail industry began to decline sharply. In 1945, Canadian railways carried 55.4 million passengers, but just 10 years later passenger traffic had dropped to 27.2 million. The creation of VIA Rail in 1977 as a Canadian Crown corporation was an attempt by the government to ensure rail travel did not disappear, but in the years since its founding VIA has struggled, relying heavily on federal subsidies in order to continue operations.

Between 1989 and 1990, VIA lost over 45% of its ridership when it cut unprofitable routes, focusing on areas with better potential for revenue and passenger volumes. From there, annual ridership has stabilized at around 3.5 million to 4.0 million passengers per year, slowly increasing throughout the 1990s and 2000s (Dupuis, 2011).

Despite this slight recovery, there are a number of challenges for passenger rail in Canada, which will likely require continued government support to survive. Three key challenges to a successful passenger rail industry are:

1. Passenger rail must negotiate with freight for right-of-use of tracks.
2. There is limited potential of routes (with the highest volume existing in the Quebec-Windsor corridor).
3. Fixed-cost equipment is aging out, requiring replacement or upgrading.

High-speed rail seems like an attractive option, but would be expensive to construct as existing tracks aren’t suitable for the reasons given above. It’s also unlikely to provide high enough returns to private investors (Dupuis, 2011). This means the Canadian government would have to invest heavily in a rapid rail project for it to proceed. As of 2014, no such investment was planned.

Spotlight On: Rocky Mountaineer Rail Tours

Founded in 1990, Rocky Mountaineer offers three train journeys through BC and Alberta to Banff, Lake Louise, Jasper, and Calgary, and one train excursion from Vancouver to Whistler. In 2013, Rocky Mountaineer introduced Coastal Passage, a new route connecting Seattle to the Canadian Rockies that can be added to any two-day or more rail journey (Rocky Mountaineer, 2014). For more information, please visit the Rocky Mountaineer website: http://www.rockymountaineer.com

While the industry overall has been in a decline, touring companies like Rocky Mountaineer have found a financially successful model by shifting the focus from transportation to the sightseeing experience. The company has weathered financial storms by refusing to discount their luxury product, instead focusing on the unique experiences. The long planning cycle for scenic rail packages has helped the company stand their ground in terms of pricing (Cubbon, 2010).

Rail Safety

In Canada, rail safety is governed by the Railway Safety Act, which ensures safe railway operation and amends other laws that relate to rail safety (Government of Canada, 2014b). The Act is overseen by the Minister of Transport. It covers grade crossings, mining and construction near railways, operating certifications, financial penalties for infractions, and safety management.

The Act was revised in late 2014 in response to the massive rail accident in July 2013 in Lac-Mégantic, Quebec. A runaway oil train exploded, killing 47 people, and subsequently MM&A Railway and three employees, including the train’s engineer, were charged with criminal negligence (CBC News, 2014).

In addition to freight management issues, a key rail safety concern is that of crossings. As recently as April 2014, Transport Canada had to issue orders for improved safety measures at crossings in suburban Ottawa after a signal malfunctioned in the area (CTV News, 2014a). According to Operation Lifesaver Canada (2014), in 2011, there were 169 crossing collisions across Canada, with 25 fatalities and 21 serious injuries. In general, however, Canada’s 73,000 kilometres of railway tracks safely transport both people and goods. And while railways in Canada, and elsewhere, are being forced to innovate, companies like Rocky Mountaineer (see Spotlight On above) give the industry glimmers of hope.

The rail industry shares some common history with the cruise sector. Let’s now turn our focus to the water and learn about the evolution of travel on the high seas.

Water

Figure 2.5 A cruise ship at sunset at Ogden Point, Victoria

Travel by water is as old as civilization itself. However, the industry as we know it began when Thomas Newcomen invented the steam engine in 1712. The first crossing of the Atlantic by steam engine took place in 1819 aboard the SS Savannah, landing in Liverpool, England, after 29 days at sea. Forty years later, White Star Lines began building ocean liners including the Olympic-class ships (the Olympic, Britannic, and Titanic), expanding on previously utilitarian models by adding luxurious amenities (Briggs, 2008).

A boom in passenger ship travel toward the end of the 1800s was aided by a growing influx of immigrants from Europe to America, while more affluent passengers travelled by steamship for pleasure or business. The industry grew over time but, like rail travel, began to decline after the arrival of airlines. Shipping companies were forced to change their business model from pure transportation to “an experience,” and the modern cruise industry was born.

The Cruise Sector

We’ve come a long way since the Olympic class of steamship. Today, the world’s largest cruise ship, MS Oasis of the Seas, has an outdoor park with 12,000 plants, an 82-foot zip wire, and a high-diving performance venue. It’s 20 storeys tall and can hold 5,400 passengers and a crew of up to 2,394 (Magrath, 2014). A crew on a cruise ship will include the captain, the chief officer (in charge of training and maintenance), staff captain, chief engineer, chief medical officer, and chief radio officer (communication, radar, and weather monitoring).

Spotlight On: Cruise Lines International Association

Cruise Lines International Association (CLIA) is the world’s largest cruise industry trade association with representation in North and South America, Europe, Asia, and Australasia. CLIA represents the interests of cruise lines and travel agents in the development of policy. CLIA is also engaged in travel agent training, research, and marketing communications (CLIA, 2014). For more information on CLIA, the cruise industry, and member cruise lines and travel agencies, visit the Cruise Lines International Association website: www.cruising.org

Cruising the World

According to CLIA, 21.7 million passengers were expected to travel worldwide on 63 member lines in 2014. Given increased demand, 24 new ships were expected in 2014-15, adding a total capacity of over 37,000 passengers.

Over 55% of the world’s cruise passengers are from North America, and the leading destinations (based on ship deployments), according to CLIA, are:

• The Caribbean (37%)
• The Mediterranean (19%)
• Northern Europe (11%)
• Australia/New Zealand (6%)
• Alaska (5%)
• Asia (4%)
• South America (3%)

River Cruising

While mass cruises to destinations like the Caribbean remain incredibly popular, river cruises are emerging as another strong segment of the industry. The key differences between river cruises and ocean cruises are (Hill, 2013):

1. River cruise ships are smaller (400 feet long by 40 feet wide on average) and can navigate narrow passages.
2. River cruises carry fewer passengers (about 10% of the average cruise, or 200 passengers total).
3. Beer, wine, and high-end cuisine are generally offered in the standard package.

The price point for river cruises is around the same as ocean trips, with the typical cost ranging from $2,000 to $4,000, depending on the itinerary, accommodations, and other amenities.

From 2008 to 2013, river cruises saw a 10% annual passenger increase. Europe leads the subcategory, while emerging destinations include a cruise route along China’s Yangtze River. As the on-board experience differs greatly from a larger cruise (no play areas, water parks, or on-board stage productions), the target demographic for river cruises is 50- to 70-year-olds. According to Torstein Hagen, founder and chairman of Viking, an international river cruising company, “with river cruises, a destination is the destination,” although many river cruises are themed around cultural or historical events (Hill, 2013).

Figure 2.6 Uniworld River Cruises River Beatrice in Passau, Germany

Cruising in Canada

According to a study completed for the North West & Canada Cruise Association (NWCCA) and its partners, in 2012, approximately 1,100 cruise ship calls were made at Canadian cruise ports generating slightly more than 2 million passenger arrivals throughout the six-month cruise season (BREA, 2013). The study found three key cruise itineraries in Canada:

1. Canada/New England
2. Quebec (between Montreal and Quebec City and US ports)
3. Alaska (either departing from, or using, Vancouver or another BC city as a port of call)

These generated $1.16 billion in direct spending. Cruising also generated almost 10,000 full- and part-time jobs paying $397 million in wages and salaries. The international cruise industry also generated an estimated $269 million in indirect business and income taxes in Canada, and the majority of this spending was in British Columbia (BREA, 2013).

Cruising BC

BC’s rail history and cruise history are intertwined. As early as 1887, Canadian Pacific Railway began offering steamship passage to destinations such as Hawaii, Shanghai, Alaska, and Seattle. Ninety-nine years later, Vancouver’s Canada Place was built, with its cruise ship terminals, allowing the province to attract large ships and capture its share of the growing international cruise industry (Cruise BC, 2014).

Spotlight On: Cruise BC

Cruise BC is a partnership between BC port destinations designed to provide a vehicle for cooperative marketing and development of BC’s cruise sector. Their vision is that the West Coast and British Columbia’s coastal communities are recognized and sought out globally by cruise lines and passengers as a destination of choice. For more information, visit the Cruise BC website: http://www.cruisebc.ca

This potential continues to grow as Nanaimo, Prince Rupert, Victoria, and Vancouver accounted for 57% of the Canadian cruise passenger traffic with 1.18 million passengers in 2012 (BREA, 2013).

Cruising isn’t the only way for visitors to experience the waters of BC. In fact, the vast majority of our water travel is done by ferry. Let’s take a closer look at this vital component of BC’s transportation infrastructure.

Ferries

Ferry service in British Columbia dates back to the mid-1800s when the Hudson’s Bay Company ran ships between Vancouver Island and the Mainland. Later, CP Rail and Black Ball ferries ran a private service, until 1958 when Premier W.A.C. Bennett announced the BC Ferry Authority would consolidate the ferries under a provincial mandate.

Figure 2.7 BC ferry:  Spirit of Vancouver Island

The MV Tsawwassen and the MV Sidney began regular service on June 15, 1960, and BC Ferries was officially launched with two terminals and around 200 employees. Today, there are 35 vessels, 47 destinations, and up to 4,700 employees in the summer peak season (BC Ferries, 2014).

BC isn’t the only destination where ferries make up part of the transportation experience. In 2011, Travel + Leisure Magazine profiled several notable ferry journeys in the article, “World’s Most Beautiful Ferry Rides” including:

• An 800-mile ferry voyage through Chile’s Patagonian fjords
• A three-mile trip from the Egyptian Spice Market to Istanbul, Turkey
• Urban ferry rides including Hong Kong’s Victoria Harbour, Australia’s Sydney Harbour, and New York City’s Staten Island Ferry

The article also featured the 15-hour trip from Port Hardy to Prince Rupert on British Columbia’s coast (Orcutt, 2011).

While cruising is often a pleasant and relaxing experience, there are a number of safety concerns for vessels of all types.

Cruise and Ferry Safety

One of the major concerns on cruise lines is disease outbreak, specifically the norovirus (a stomach flu), which can spread quickly on cruise ships as passengers are so close together. The US Centers for Disease Control (CDC) vessel sanitation program (http://www.cdc.gov/nceh/vsp/default.htm) is designed to help the industry prevent and control the outset, and spreading, of these types of illnesses (Briggs, 2008).

Accidents are also a concern. In 2006, the BC Ferries vessel MV Queen of the North crashed and sank in the Inside Passage, leaving two passengers missing and presumed dead. The ship’s navigating officer was charged with criminal negligence causing their deaths (Keller, 2013). More recently, a “hard landing” at Duke Point terminal on Vancouver Island caused over $4 million in damage. BC Ferries launched a suit against a German engineering firm in late 2013, alleging a piece of equipment failed, making a smooth docking impossible. The Transportation Safety Board found that staff aboard the ship didn’t follow proper docking procedures, however, which contributed to the crash (Canadian Press, 2013).

Spotlight On: The Transportation Safety Board  

The Transportation Safety Board (TSB) investigates marine, pipeline, rail, and air incidents. It is an independent agency that reviews an average of 3,200 events every year. It does not determine liability; however, coroners and medical examiners may use TSB findings in their investigations. The head office in Quebec manages 220 staff across the country. For more information, visit the Transportation Safety Board website: http://www.bst-tsb.gc.ca/eng/index.asp

We’ve covered the skies, the rails, and the seas. Now let’s round out our investigation of transportation in tourism by delving into travel on land.

Land

While much of this text has placed significance on the emergence of the railways as critical to the development of our industry, BC’s roadways have also played an integral role. Our roads have evolved from First Nations trails, to Fur Trade and Gold Rush routes, to Wagon Roads and Trunk Roads — finally becoming the highway system we know today (British Columbia Ministry of Transportation and Highways, n.d.).

Take a Closer Look: Frontier to Freeway: A Short Illustrated History of the Roads in British Columbia

This short book, available as a PDF, provides an overview of the integral importance of BC’s evolving roadways in our transportation sector. Read this book: Frontier to Freeway: A Short Illustrated History of the Roads in British Columbia [PDF]: http://www.th.gov.bc.ca/publications/frontiertofreeway/frontiertofreeway.pdf

Today, land-based travel is achieved through a complex web of local transit, taxis, rentals, walking, and short-term sightseeing. This section briefly explores these options.

Scenic and Sightseeing Travel

It’s common for visitors to want to explore a community and appreciate the sights. We’ve already learned a little about the rail-based sightseeing company, Rocky Mountaineer. Many destinations also offer short-term, hop-on-hop-off bus and trolley tours. Others feature trams and trolleys. Outside of impromptu excursions, sightseeing tours are often put together by inbound tour operators. You can learn more about tour operators, and the sightseeing sector, in Chapter 7.

Transit and Destination Infrastructure

Vancouver’s Tourism Master Plan acknowledges the importance of transportation infrastructure to the tourism industry. Priorities for future development by the city include (Tourism Vancouver, 2013):

• Improving accessibility for people with disabilities
• Creating a transit loop between downtown attractions
• Supporting ferries in False Creek
• Providing late-night transit
• Investigating and implementing a public bike share
• Developing more transit options along the Broadway corridor
• Working with taxi companies to explore a strategic plan for taxi operations
• Enhancing walkability by implementing recommendations from the Pedestrian Safety Study and Action Plan

These action items were developed in consultation with industry stakeholders as well as residents, and reflect the interrelated elements that make up a destination’s transportation infrastructure.

Rentals and Taxis

Figure 2.8 A Lincoln Town Car (rental) in San Fransisco

Today, when travellers aren’t using their own cars, automobile travel is traditionally split between rental vehicles and taxis (including limousines).

Rentals

In North America, there are three main brands that represent approximately 85% of the rental car business: Enterprise (includes National and Alamo), Hertz (includes Dollar and Thrifty), and Avis. One of the reasons that brands have consolidated over time is the high fixed cost of operation as vehicles are purchased, maintained, and disposed of. Fierce competition means prices are checked and updated thousands of times a day. The business is also highly seasonal, with high traffic in summer and spring, and so fleet management is critical for profitability. Rental companies tend to use enplanements (the numbers of passengers travelling by air), as a measurement of market trends that influence rental usage (DBRS, 2010).

Taxis

In BC, taxi licences are issued by the BC Passenger Transportation Board. In Vancouver, the right to operate a taxi is based on a permit system, and each permit costs the original holder $100. But because of the limited number of permits available, those who hold one are able to auction it off for over $800,000 and keep the profit. As a result, passengers in Vancouver paid an average of 73% more for the equivalent trip in Washington, D.C. Drivers from  areas outside the city depositing passengers in Vancouver are also not permitted to pick up fares on the return trip, having to drive across their boundaries (Proctor, 2014).

Ridesharing apps like Uber, which allow people to find a ride using their mobile phone, have emerged to exert influence on car travel in key destinations. In San Francisco, these apps have rapidly undercut the taxi industry: according to the city’s transit authority, per month, trips by taxi have plummeted from 1,424 in 2012 to 504 in 2014, even though taxi operators maintain a monopoly over rides from the airport (Kuittinen, 2014). In New York City, however, the price of medallions (similar to Vancouver’s taxi permits) continues to hover above $950,000. In large markets like Manhattan, passengers continue to hail cabs on the street in the moment, with e-hails (electronic taxi hails) at 0.17% of the market (Brustein & Winter, 2014). The City of Vancouver opted to force Uber to roll back after its initial release, and in 2014 placed the app on a six-month moratorium after pressure from taxi operators who cited threats to the values of their licences as well as safety and monitoring concerns (CTV News, 2014b).

As this and other examples illustrate, the transportation sector is vulnerable to regulatory, technological, operational, and business trends. Let’s look at these in more detail.

Trends and Issues

This section explores issues directly relating to transportation today including fuel cost, labour, and environmental impacts. For more information on one of the biggest trends in tourism, online travel agencies (OTAs), and how online bookings impact the transportation sector, please see Chapter 7.

Fuel Cost

When it comes to moving people, fuel cost is critical. The cost of jet fuel is one of the single highest factors in airline profitability. In 2013, the average cost was around $125 per barrel, which was $5 less than the previous year (IATA, 2014a). Cruise ships consume a lower grade of diesel than do land vehicles, but they consume a lot of it. The QE2, for example, consumes roughly 380 tonnes of fuel every day if travelling at 28.5 knots (Briggs, 2008).

Labour

As in all tourism-related sectors, cyclical labour shortages can significantly impact the transportation industry. In the aviation sector, a forecast found that by 2032 the world’s airlines will need 460,000 additional pilots and 650,000 new maintenance technicians to service current and future aircraft. The drive to find employees also extends to the maritime sector, where the International Maritime Organization (IMO) launched a “Go to sea!” campaign to attract more workers to the field (PWC, 2012).

Environmental Impacts

In addition to fuel and labour costs, and regulations we’ve covered already, the transportation sector has a significant impact on the natural environment.

Air Impacts

According to the David Suzuki Foundation (2014), the aviation industry is responsible for 4% to 9% of climate change impacts, and greenhouse gas emissions from flights have risen 83% since 1990. Airline travel has a greater emissions impact than driving or taking the train per passenger kilometre, which caused a bishop in the UK to famously declare that “Making selfish choices such as flying on holiday [is] a symptom of sin” (Barrow, 2006).

Rail Impacts

Rail travel is widely regarded as one of the most environmentally friendly modes of transportation due to its low carbon dioxide emissions. Railways come under fire outside of the tourism realm, however, as freight shipping can produce hazards to resident health including an increased risk of developing cancer and noise pollution (The Impact Project, 2012).

Cruise Impacts

Cruise ships can generate significant pollution from black water (containing human waste), grey water (runoff from showers, dishwashers, sinks), bilge water (from the lowest compartment of the ship), solid waste (trash), and chemical waste (cleaners, solvents, oil). One ship can create almost a million litres of grey water, over 113,000 litres of black water, and over 140,000 litres of bilge water every day. Depending on the regulations in the operating areas, ships can simply dump this waste directly into the ocean. Ballast tanks, filled to keep the ship afloat, can be contaminated with species which are then transported to other areas, disrupting sensitive ecosystems (Briggs, 2008).

Land Impacts

A recent study found that the impact of travel on land is highly dependent on the number of passengers. Whereas travelling alone in a large SUV can have high emissions per person (as high as flying), increasing the number of passengers, and using a smaller vehicle, can bring the impact down to that of train travel (Science Daily, 2013).

For more information on the environmental impacts of the transportation sector, and how to mitigate these, read Chapter 10.

Weather

As you’ve learned, the transportation sector can have an effect on climate change, and changes in weather have a strong effect on transportation. According to Natural Resources Canada (2013), some of these include:

• More drastic freeze-thaw cycles, destroying pavement and causing ruts in asphalt
• Increased precipitation causing landslides, washing out roads, and derailing trains
• Effects and costs of additional de-icing chemicals deployed on aircraft and runways (over 50 million litres were used worldwide in 2013)
• Delayed flights and sailings due to increased storm activity
• Millions of dollars of infrastructure upgrades required as sea levels increase and flood structures (replacing or relocating bridges, tunnels, ports, docks, dykes, helipads and airports)

The threat of climate change could significantly impact sea-level airports such as YVR, and some 50 additional registered airports across Canada that sit at five metres or less above sea level (Natural Resources Canada, 2013).

For this reason, it’s important that the sector continue to press for innovations and greener transportation choices, if only to ensure future financial costs are kept at bay.

Figure 2.9 A flight is grounded for seven hours at Baltimore Airport due to severe weather

Conclusion

Tourism, freight, and resource industries such as forestry and mining sometimes compete for highways, waterways, and airways.  It’s important for governments to engage with various stakeholders and attempt to juggle various economic priorities — and for tourism to be at the table during these discussions.

That’s why in 2015 the BC Ministry of Transportation released its 10-year plan, BC on the Move. Groups like the Tourism Industry Association of BC actively polled their members in order to have their concerns incorporated into the plan. These included highway signage and wayfaring, the future of BC Ferries, and urban infrastructure improvements.

You can view the plan by visiting http://engage.gov.bc.ca/transportationplan/

This chapter has taken a brief look at one of the most complex, and vital, components of our industry. Chapter 3 covers accommodations and is just as essential.

Key Terms

• Ancillary revenues: money earned on non-essential components of the transportation experience including headsets, blankets, and meals
• Blue Sky Policy: Canada’s approach to open skies agreements that govern which countries’ airlines are allowed to fly to, and from, Canadian destinations
• Cruise BC: a multi-stakeholder organization responsible for the development and marketing of British Columbia as a cruise destination
• Cruise Lines International Association (CLIA): the world’s largest cruise industry trade association with representation in North and South America, Europe, Asia, and Australasia
• International Air Transport Association (IATA): the trade association for the world’s airlines
• Low-cost carrier (LCC): an airline that competes on price, cutting amenities and striving for volume to achieve a profit
• National Airports Policy (NAP): the 1994 policy that saw transfer of 150 airports from federal control to communities and other local agencies, essentially deregulating the industry
• Open skies: a set of policies that enable commercial airlines to fly in and out of other countries
• Passenger load factor: a way of measuring how efficiently a transportation company uses its vehicles on any given day, calculated for a single flight by dividing the number of passengers by the number of seats
• Railway Safety Act: a 1985 Act to ensure the safe operation of railways in Canada
• Ridesharing apps: applications for mobile devices that allow users to share rides with strangers, undercutting the taxi industry
• Transportation Safety Board (TSB): the national independent agency that investigates an average of 3,200 transportation safety incidents across the country every year

Exercises

1. When did the first paid air passenger take flight? What would you say have been the three biggest milestones in commercial aviation since that date?
2. If a flight with 500 available seats carries 300 passengers, what is the passenger load factor?
3. Why is it difficult for new airlines to take off in Canada?
4. How did some of BC’s regional airports come into existence? What are some of the challenges they face today?
5. How much economic activity is generated by YVR every year?
6. What are the key differences between river cruises and ocean cruises? Who are the target markets for these cruises?
7. Which cities attract more than 50% of the cruise traffic in Canada?
8. What are the priorities for transportation infrastructure development as outlined in Vancouver’s Tourism Master Plan? What other transportation components would you include in your community’s tourism plan?
9. What are some of the environmental impacts of the transportation sector? Name three. How might these be lessened?

Case Study: Air North

Founded in 1977 by Joseph Sparling and Tom Wood, Air North is a regional airline providing passenger and cargo service between Yukon and destinations including BC, Alberta, and Alaska. In 2012, Air North surpassed one million passengers carried. Employing over 200 people, the airline is owned in significant part by the Vuntut Development Corporation, the economic arm of the Vuntut Gwitchin First Nation (VGFN). In fact, one in 15 Yukoners owns a stake in the airline (Air North, 2015).

The ownership model has meant that economic returns are not always the priority for shareholders. As stated on its website, “the maximization of profit is not the number one priority,” as air service is a “lifeline” to the VGFN community. For this reason, service and pricing of flights is extremely important, as are employment opportunities. 

Visit the corporate information portion of the Air North website and answer the following questions: http://www.flyairnorth.com/Experience/about-air-north.aspx

1. What is the number one priority of Air North? How is the company structured to ensure it can meet its goals in this area?
2. What does Air North consider to be its competitive advantage? How does this differ from other airlines?
3. Describe the investment portfolio of the Vuntut Development Corporation. What types of companies does it own? Why might they have selected these types of initiatives?
4. List at least three groups that have a stake in the airline. What are their interests? Where do their interests line up, and where do they compete?
5. In your opinion, would this regional airline model work in your community? Why or why not?

References

Air North. (2015). Corporate information. Retrieved from www.flyairnorth.com/Experience/Corporate.aspx

Airbus. (2014). A380: Boost your profitability. Retrieved from http://www.airbus.com/aircraftfamilies/passengeraircraft/a380family/

Rebecca Wilson-Mah

Overview

In essence, hospitality is made up of two services: the provision of overnight accommodation for people travelling away from home, and options for people dining outside their home. We refer to the accommodation and food and beverage services sectors together as the hospitality industry. This chapter explores the accommodation sector, and the Chapter 4 details the food and beverage sector.

Figure 3.1 The view from a balcony at the Westin Bayshore hotel in downtown Vancouver

In Canada, approximately 25% to 35% of visitor spending is attributed to accommodation, making it a substantial portion of travel expenditures.

Hotels

There were 8,090 hotel properties with a total of 440,123 rooms in Canada in 2014. Direct spending on overnight stays was $16.7 billion, and the year’s average occupancy rate was forecast at 64%. Across the country the sector employed 287,000 people (Hotel Association of Canada, 2014). According to go2HR, “with a projected rate of annual employment growth of 1.5 per cent, there will be 18,920 job openings between 2011 and 2020” (2015a).

In order to understand this large and significant sector, we will explore the history and importance of hotels in Canada, and review the hotel types along with various ownership structures and operational considerations. To complete the chapter, we will identify accommodation alternatives and specific trends that are affecting the accommodation sector today.

The History of Hotels in Canada

As we learned in Chapter 2, travel in Europe, North America, and Australia developed with the establishment of railway networks and train travel in the mid-1800s. The history of Canada’s grand hotels is also the story of Canada’s ocean liners and railways. Until the use of personal cars became widespread in the 1920s and 1930s, and taxpayer-funded all-weather highways were created, railways were the only long-distance land transportation available in Canada.

Both of Canada’s railway companies established hotel divisions: Canadian Pacific Hotels and Canadian National Hotels (Canada History, 2013). The first hotels were small and included Glacier House in Glacier National Park, BC, and Mount Stephen House in Field, BC. The hotel business was firmly established when both companies recognized the business opportunity in the growth of tourism, and they soon became rivals, building grand hotels in select locations close to railway stops.

Figure 3.2 The Banff Springs Hotel today

Banff Springs Hotel opened in 1888, and other hotels soon followed, including the Château Frontenac in Quebec City (1893), the Royal York in Toronto (1929), and the Hotel Vancouver (1939). These hotels remain in operation today and are landmarks in their destinations, functioning as accommodations and as local attractions due to their historic significance and outstanding architecture.

Through the 1950s and 1960s, an increase in motor traffic saw the rise of the motel. The word motel, used less commonly today, comes from the term “motorist’s hotel,” used to denote a hotel that provides ample parking and rooms that are easily accessible from the parking lot. Traditionally, these structures were designed with all the rooms facing the parking lot, and relied heavily on motor traffic from nearby highways (Diffen, 2015).

Today, there are a number of hotel types, which can be classified in multiple ways. Let’s explore these classifications in more detail.

Hotel Types

Hotels are typically referred to by hotel type or category. The type of hotel is determined primarily by the size and location of the building structure, and then by the function, target market, service level, other amenities, and industry standards.

Classifications

Competitive set is a marketing term used to identify a group of hotels that include the competitors that a hotel guest is likely to consider as an alternative. These can be grouped by any of the classifications listed in Table 3.1, such as size, location, or amenities offered. There must be a minimum of three hotels to qualify as a competitive set.

Figure 3.3 A wedding on the rooftop of the Pan Pacific Hotel in Vancouver, adjacent to the Vancouver Convention Centre

Business hotels, airport hotels, budget hotels, boutique hotels, convention hotels, and casino hotels are some examples of differentiated hotel concepts and services designed to meet a specific market segment. As companies continue to innovate and compete to capture defined niche markets within each set, we can expect to see the continued expansion of specific concepts. For example, hotels found close to, or even within, convention facilities are a great match for meetings and events, as well as the SMERF market (social, military, educational, religious, and fraternal segment of the group travel market).

Table 3.2 outlines the characteristics of specific hotel types that have evolved to match the needs of a particular traveller segment. As you can see, hotels adapt and diversify depending on the markets they want and need to attract to stay in business.

Let’s now take a closer look at three types of hotel that have emerged to meet specific market needs: budget hotels, boutique hotels, and resorts.

Budget Hotels

The term budget hotel is challenging to define, however most budget properties typically have a standardized appearance and offer basic services with limited food and beverage facilities. Budget hotels were first developed in the United States and built along the interstate highway system. The first Holiday Inn opened in the United States in 1952; the first Quality Motel followed in 1963.

In Europe, Accor operates the predominant European-branded budget rooms. Accor has four hotel brands that were recently redesigned: hotelF1, ibis budget, ibis Styles, and ibis. These budget brands offer comfort, modern design, and breakfast on site; ibis Styles is all inclusive, with one price for room night, breakfast, and internet access (Accor, 2015).

The budget brands owned by Accor are an example of a shift toward the budget boutique hotel style. A relatively new category of hotel, budget boutique is a no-frills boutique experience that still provides style, comfort, and a unique atmosphere. Starwood has entered this category with a scaled down version of W with the new Aloft brand that debuted in Montreal in 2008 (Starwood Hotels, 2011).

Boutique Hotels

Figure 3.4 A picture of a welcome gift and note for a returning guest at the Magnolia Hotel and Spa, posted online by the guest

Canada currently has no industry standards to define boutique hotels, but these hotels generally share some common features. These include having less than 100 rooms and featuring a distinctive design style and on-site food and beverage options (Boutique Hotel Association, n.d.). As a reflection of the size of the hotel, a boutique hotel is typically intimate and has an easily identifiable atmosphere, such as classic, luxurious, quirky, or funky.

According to Bill Lewis, general manager for the Magnolia Hotel and Spa in Victoria, “guests seek out boutique hotels for their small size, individual design style, … and personalized service.”  He feels that “maintaining this service level in a small hotel allows for a very personalized and intimate experience that cannot be matched in large branded hotels” (personal communication, 2014).

Resorts

A resort is a full-service hotel that provides access to or offers a range of recreation facilities and amenities. A resort is typically the primary provider of the guest experience and will generally have one signature amenity or attraction (Brey, 2009).

Examples of signature amenities include skiing and mountains, golf, beach and ocean, lakeside, casino and gaming, all inclusiveness, spa and wellness, marina, tennis, and waterpark. In addition, resorts also offer secondary experiences and a leisure or retreat-style environment.

Now that we understand the classifications of hotel types, let’s gain a deeper understanding of the various ownership structures in the industry.

Ownership Structures

There are several ownership models employed in the sector today, including independent, management contract, chains and franchise agreements, fractional ownership, and full ownership strata units. This section explains each of these in more detail and provides examples of each.

Independent

Figure 3.5 The exterior of the Wedgewood in downtown Vancouver

An independent hotel is financed by one individual or a small group and is directly managed by its owners or third-party operators. The term independent refers to a management system that is free from outside control.

There are a number of very well-established independently branded hotels. These hotel companies have developed their own standards, support systems, policies and procedures, and best practices in all areas of the business. Independent hotels have the flexibility to customize or adjust their systems to position their property for success, and the location, product, service, experience, sales and marketing, and brand are all necessary for that success (Cabañas, 2014). An example of an independent hotel is the Wedgewood Hotel and Spa in Vancouver, founded by Eleni Skalbania, and currently co-owned by her daughter Elpie (Wedgewood, 2015).

Management Contract

Another business model is a management contract. This is a service offered by a management company to manage a hotel or resort for its owners. Owners have two main options for the structure of a management contract. One is to enter into a separate franchise agreement to secure a brand and then engage an independent third-party hotel management company to manage the hotel. SilverBirch Hotels is an example of a hotel management company that manages independent hotels and hotels operating under different major franchise brands, such as Marriott, Hilton, and Radisson (SilverBirch Hotels, 2015).

Figure 3.6 The iconic Fairmont Empress Hotel, purchased in 2014 by Nat and Flora Bosa

A slightly different option is for owners to select a single company to provide the brand and the expertise to manage the property. Four Seasons Hotels and Resorts and Fairmont Hotels and Resorts are companies that provide this option to owners. In 2014, the iconic Fairmont Empress hotel was purchased by Vancouver developer Nat Bosa and his wife Flora, who continued to retain Fairmont as the management company after the purchase (Meiszner, 2014).

Selecting a brand affiliation is one of the most significant decisions hotel owners must make (Crandell, Dickinson, & Kante, 2004). The brand affiliation selected will largely determine the cost of hotel development or conversion of an existing property to meet new brand standards. The affiliation will also determine a number of things about the ongoing operation including the level of services and amenities offered, cost of operation, marketing opportunities or restrictions, and the competitive position in the marketplace. For these reasons, owners typically consider several branding options before choosing to operate independently or selecting a brand affiliation.

Chains and Franchise Agreements

Figure 3.7 A room at the Coast Bastion Hotel in Nanaimo

Another managerial and ownership structure is franchising. A hotel franchise enables individuals or investment companies (the franchisee) to build or purchase a hotel and then buy or lease a brand name to operate a business and become part of a chain of hotels using the franchisor’s hotel brand, image, goodwill, procedures, controls, marketing, and reservations systems (Rushmore, 2005).

A well-known franchise in BC is Coast Hotels. A franchisee with Coast Hotels becomes part of a network of properties that use a central reservations system with access to electronic distribution channels, regional and national marketing programs, central purchasing, and brand operating standards (Coast Hotels, 2015). A franchisee also receives training, support, and advice from the franchisor and must adhere to regular inspections, audits, and reporting requirements.

Selecting a franchise structure may reduce investment risk by enabling the franchisee to associate with an established hotel company. Franchise fees can be substantial and a franchisee must be willing to adhere to the contractual obligations with the franchisor (Migdal, n.d.; and Rushmore, 2005).  Franchise fees typically include an initial fee paid with the franchise application, and then continuing fees paid during the term of the agreement. These fees are sometimes a percentage of revenue but can be set at a fixed fee. Franchise fees generally range from 4% to 7% of gross rooms revenue (Crandell et al., 2004).

Fractional Ownership

In a fractional ownership model, developers finance hotel builds by selling units in one-eighth to one-quarter shares. This financing model was very popular in BC from the late 1990s to 2008 (Western Investor, 2012). Examples of fractional ownership include the Sun Peaks Ski Resort in Kamloops and the Penticton Lakeside Resort.

In this model, owners can place their unit in a rental pool. The investment return for owners is based on the term

Figure 3.8 The Sun Peaks Resort hotel

s of the contract they have for their unit, the strata fees, and the hotel’s occupancy. Managing fractional ownership can be very time consuming for hotel owners or management companies as each hotel unit can have up to eight owners. If occupancy rates are too low, an owner may not be able to cover the monthly strata fees. For the hotel management company, attaining occupancy rate targets is necessary to ensure that the balance of revenue is sufficient to cover the hotel’s operating expenses.

Developers now anticipate that fractional ownership will not be used to finance new hotel builds in the future due to poor performance. There have been some high-profile collapses for hotel developers in BC, and between 2002 and 2012 fractional hotel owners experienced asset depreciation (Western Investor, 2012). It is uncertain how the market will perform in the next several years.

Full Ownership Strata Units

Figure 3.9 The Rosewood Hotel Georgia, a restored historic hotel in downtown Vancouver

In this financing model, hotel developers finance a new hotel build with the sale of full ownership strata units. The sale of the condominium units finances the hotel development. Examples include the Fairmont Pacific Rim and the Rosewood Hotel Georgia.

No matter what the ownership model, it’s critical for properties to offer a return on investment for owners. The next section looks at ways of measuring financial performance in the sector.

Financial Performance

According to hotel consultant Betsy McDonald from HVS International Hotel Consultancy, the “industry rule of thumb is that a hotel room must make $1 per night for every $1,000 it takes to build or buy. If the hotel costs $125,000 per [room], the room has to rent for $125 per night on average and you need 60% to 70% occupancy to break even” (McDonald, 2011).

Several terms and formulas are used to evaluate revenue management strategies and operational efficiency:

Occupancy is a term that refers to the percentage of all guest rooms in the hotel that are occupied at a given time. 

Average daily rate (ADR) is a calculation that states the average guest room income per occupied room in a given time period. It is determined by dividing the total room revenue by the number of rooms sold.

Revenue per available room (RevPAR ) is a calculation that combines both occupancy and ADR in one metric. It is calculated by multiplying a hotel’s ADR by its occupancy rate. It may also be calculated by dividing a hotel’s total room revenue by the total number of available rooms and the number of days in the period being measured.

Costs per occupied room (COPR) is a figure that states all the costs associated with making a room ready for a guest (linens, cleaning costs, guest amenities).

These terms and measurements allow hotel staff and management to track the success of the operation and to compare against competitors and regional averages.

Table 3.3 indicates the top five hotel companies in Canada based on revenue (Hotel Association of Canada, 2014). Note that the top two listings include units and revenues earned outside of Canada as these are international companies.

Across all ownership models, most properties have operational aspects in common. But before we take a closer look at the roles within a typical hotel, let’s review an important part of the accommodations sector in Canada and BC: camping and recreational vehicle (RV) stays.

Camping and RV Accommodation

Figure 3.10 A group of campers enjoy the night sky from their tents

A significant portion of travel accommodation is also provided in campgrounds and recreational vehicles (RVs). As the Canadian and BC tourism brands are closely tied to the outdoors, and these are two options that immerse travellers in the outdoor experience, it is no surprise that these two types of accommodation are popular options.

In 2011, 14% of Canadian households owned an RV, with over 1 million RVs on the road in the country that year. Economic activity associated with RVing generated approximately $14.5 billion. Across the country 3,000 independently owned and operated campgrounds welcomed guests for camping in RVs and in tents that year (CNW, 2014).

According to the Camping and RVing British Columbia Coalition (CRVBCC, 2014), BC is home to 340 vehicle accessible campgrounds managed by the BC Society of Park Facility Operators, and Destination British Columbia inspects and approves over 500 campgrounds across the province. Seven national parks within the province contain an additional 14 campgrounds, and the BC Recreation Sites and Trails Branch manages more than 1,200 backcountry sites including campgrounds and other facilities. Another 300 private RV parks and campgrounds play host to a mixture of longer-stay residents and overnight guests.

In 2014, national industry associations began to call on the government for taxation relief and marketing help to ensure this segment of the sector could continue to thrive. They also highlighted the need to increase the operating hours and seasons of publicly funded campgrounds to match the private sector and to ensure continuity of service for guests (CNW, 2014). Closer to home, the BCLCA (see Spotlight On above) continues to advocate for equitable property tax arrangements, support with employment issues, and other policies relating to land and water use for their members.

Chapter 5 provides more in-depth information about the importance of the recreation sector to BC. For now, let’s move our discussion forward by taking a closer look at the common organizational structure of many accommodation businesses.

Operations

The organizational structures of operations and the number of roles and levels of responsibility vary depending on the type and size of accommodation. They are also determined by ownership and the standards and procedures of the management company. In this section, we explore the organizational structure and roles that are typically in place in a full-service hotel with under 500 rooms. These can also apply to smaller properties and businesses such as campgrounds — although in these cases several roles might be fulfilled by the same person.

Guest Services

Figure 3.11 Vicky welcomes guests to the front desk of the Delta Burnaby Hotel

Before we turn to examples of specific operational roles, let’s take a brief look at the importance of guest services, which will be covered in full in Chapter 9.

The accommodation sector provides much more than tangible products such as guest rooms, beds and meals; service is also crucial. Regardless of their role in the operation, all employees must do their part to ensure that each guest’s needs, preferences, and expectations are met and satisfied.

In some cases, such as in a luxury hotel, resort hotel, or an all-inclusive property, the guest services may represent a person’s entire vacation experience. In other cases, the service might be less significant, for example, in a budget airport hotel where location is the key driver, or a campground where guests primarily expect to take care of themselves.

In all cases, operators and employees must recognize and understand guest expectations and also what drives their satisfaction and loyalty. When the key drivers of guest satisfaction are understood, the hotel can ensure that service standards and business practices and policies support employees to deliver on these needs and that guest expectations are satisfied or exceeded.

General Manager and Director of Operations

In most properties, the general manager or hotel manager serves as the head executive. Division heads oversee various departments including managers, administrative staff, and line-level supervisors. The general manager’s role is to provide strategic leadership and planning to all departments so revenue is maximized, employee relations are strong, and guests are satisfied.

The director of operations is responsible for overseeing the food and beverage and rooms division. This role is also responsible for providing guidance to department heads to achieve their targets and for directing the day-to-day operations of their respective departments. The director of operations also assumes the responsibilities of the general manager when he or she is absent from the property.

Accounting

The controller is responsible for overall accounting and finance-related activities including accounts receivable, accounts payable, payroll, credit, systems management, cash management, food and beverage cost control, receiving, purchasing, food stores, yield management, capital planning, and budgeting.

Engineering and Maintenance

The chief engineer is the lead for the effective operation and maintenance of the property on a day-to-day basis, typically including general maintenance, heating, ventilation and air conditioning, kitchen maintenance, carpentry, and electrical and plumbing (Fairmont Hotels and Resorts, 2015). The chief engineer is also responsible for preventive maintenance and resource management programs.

Food and Beverage Division

Figure 3.12 A guest enjoys breakfast in her room at the Pan Pacific Hotel in Vancouver

The food and beverage director is responsible for catering and events, in-room dining, and stand-alone restaurants and bars. The executive chef, the director of banquets, and the assistant managers responsible for each restaurant report to the director of food and beverage. The director assists with promotions and sales, the annual food and beverage budget, and all other aspects of food and beverage operations to continually improve service and maximize profitability.

Human Resources

The human resources department provides guidance and advice on a wide range of management-related practices including recruitment and selection, training and development, employee relations, rewards and recognition, performance management, and health and safety.

Rooms Division

Front Office

Reporting to the director of rooms, the front office manager, sometimes called the reception manager, controls the availability of rooms and the day-to-day functions of the front office. The front desk agent reports to the front office manager and works in the lobby or reception area to welcome the guests to the property, process arrivals and departures, coordinate room assignments and pre-arrivals, and respond to guest requests.

Housekeeping

Reporting to the director of rooms, the executive housekeeper manages and oversees housekeeping operations and staff including the housekeeping manager, supervisor, house persons, and room attendants. An executive housekeeper is responsible for implementing the operating procedures and standards. He or she also plans, coordinates, and schedules the housekeeping staff. Room audits and inspections are completed regularly to ensure standards are met (go2HR, 2015b).

Reporting to the housekeeping supervisor, room attendants complete the day-to-day task of cleaning rooms based on standard operating procedures and respond to guest requests. Reporting to the housekeeping supervisor, house persons clean public areas including hallways, the lobby, and public restrooms, and deliver laundry and linens to guest rooms.

Reservations

Large full-service hotels typically have a reservations department, and the reservations manager reports directly to the front office manager. The guest’s experience starts with the first interaction a guest has with a property, often during the reservation process. Reservations agents convert calls to sales by offering the guest the opportunity to not only make a room reservation but also book other amenities and activities.

Today, with online and website reservations available to guests, there is still a role for the reservations agent, as some guests prefer the one-to-one connection with another person. The extent to which the reservations agent position is resourced will vary depending on the hotel’s target market and business strategy.

Sales and Marketing

The sales and marketing director is responsible for establishing sales and marketing activities that maximize the hotel’s revenues. This is typically accomplished by increasing occupancy and revenue opportunities for the hotel’s accommodation, conference and catering space, leisure facilities, and food and beverage outlets. The sales and marketing manager is responsible for coordinating marketing and promotional activities and works closely with other hotel departments to ensure customers are satisfied with all aspects of their experience (go2HR, 2015c).

Catering and Conference Services

In larger full-service hotels with conference space, a hotel will have a dedicated catering and conference services department. The director of this department typically reports to the director of sales and marketing. The catering and conference services department coordinates all events held in the hotel or catered off-site. Catering and conference events and services range from small business meetings to high-profile conferences and weddings.

Figure 3.13 The culinary team at Café Pacifica in the Pan Pacific prepares food for a special event

Now that we have a sense of the building blocks of a typical hotel operation, let’s look at some trends affecting the sector.

Trends and Issues

The accommodation sector is sensitive to shifting local, regional, and global economic, social, and political conditions. Businesses must be flexible to meet the needs of their different markets and evolving trends. These trends affect all hotel types, regions, and destinations differently. However, overall, hoteliers must respond to these trends in a business landscape that is increasingly competitive, particularly in markets where the supply base is growing faster than demand (Hotelier, 2014).

The Sharing Economy: Airbnb

The sharing economy is a relatively new economic model in which people rent beds, cars, boats, and other underutilized assets directly from each other, all coordinated via the internet (The Economist, 2013). Airbnb is the most prominent example of this model. It provides a platform for travellers and manages all aspects of the relationship without requiring any paperwork.

At Airbnb, the host who rents out the space controls the price, the description of the space, and the guest experience. The host also makes the house rules and has full control over who books the space. As well, both hosts and guests can rate each other and write reviews on the website (Cole, 2014).

Airbnb began in 2008 when the founders rented their air mattresses to three visitors in San Francisco (Fast Company, 2012). In fact, the name Airbnb is derived from “air mattress bed and breakfast.” However, Airbnb is not only for couch surfers or budget-conscious travellers; it includes a wide range of spaces in locations all over the world. When users create an account, they set the price and write the descriptions to advertise the space to guests (Airbnb, 2015). Since 2008, the Airbnb online marketplace has grown rapidly, with more than 1 million properties worldwide and 30 million guests who used the service by the end of 2014 (Melloy, 2015).

Figure 3.14 The Airbnb home page on a user’s mobile phone

This and other innovations have changed the accommodation landscape as never before. Ten to 15 years ago online travel agents were a major innovation that changed the distribution and sale of rooms. But they still had to work with existing hotels, whereas Airbnb has enabled new entrants into the industry and thus increased supply.

On the supply side, Airbnb enables individuals to share their spare space for rent; on the demand side, consumers using Airbnb benefit from increased competition and more choice. An unanswered question is to what extent Airbnb has impacted the hospitality industry at large and how it will impact it in the future. A study completed in 2014 in Austin, Texas, indicates that lower-end hotels, and hotels not catering to business travellers, are more vulnerable to increased competition from rentals enabled by firms like Airbnb than are hotels without these characteristics (Zervas, Preserpio, & Byers, 2015).

Distribution and Online Travel Agents

Online travel agents (OTAs) are a valuable marketing and third-party distribution resource for hotels and play a significant role in online distribution (Inversini & Masiero, 2014). In the first quarter of 2014, 13.2% of hotel bookings for individual leisure and business travellers (TravelClick, 2014) were made through OTAs (for example, Expedia, Hotels.com, Kayak.com).

OTAs offer global distribution so that each hotel and chain can be available to anyone at the click of a button (Then Hospitality, 2014). Smaller independent hotels that do not have the global marketing and sales resources of a larger chain are able to gain exposure, sell rooms, and build their reputation through online guest ratings and reviews. OTAs also help hotels offer combined value and packaging options that are attractive to many consumers (for example, booking and search options for hotels, car rentals, air fare, attractions, and travel packages). Customized searches, travel guidance, and rewards points are also available when booking through an OTA. If a hotel or chain has an exceptional product and service, OTAs share guest ratings, which can increase the number of reservations and referrals.

Chris Anderson at the Center for Hospitality Research at Cornell University analyzed 1,720 reservations made on the websites of six InterContinental Hotels brands (2012). Anderson found that every booking made on Expedia attracted three to nine reservations to the hotel’s site, suggesting the commission a hotel pays an OTA is a cost-effective expense, as it generates additional revenues.

The general industry guidance for hotels using OTAs is to ensure that this distribution channel is part of a broader sales strategy, coupled with sound customer relationship management practices.

Table 3.4 provides an overview of some of the distribution channels that are available to hoteliers.

For more on marketing in the services sector, see Chapter 8.

Online Bookings and Mobile Devices

In 2014, 27% of online bookings in leading regions in the United States were made by consumers using their mobile devices and tablets (Travel Click, 2014). As the trend continues, hoteliers are adapting their e-commerce strategy to respond appropriately and to understand what consumers in their hotel segment need, want, and expect from the mobile booking experience. According to Travel Click (2014), same-day reservations are also on the rise. Bookings made with mobile devices can be incentivized by offers for deals such as mobile-specific rate plans or discounts to directly target last-minute shoppers.

Figure 3.15 A group of travellers on their mobile phones at baggage claim in an airport

Table 3.5 was generated by a review of press releases (Hotel Analyst, 2014), and it provides some examples of mobile technologies and customized apps used by hotel companies.

Conclusion

The accommodation sector, and the hotel sector in particular, encompasses multiple business models and employs hundreds of thousands of Canadians. A smaller, but important segment in BC is that of camping and RV accommodators.

As broader societal trends continue and morph, they will continue to impact the accommodations marketplace and consumer. Owners and operators must stay abreast of these trends, continually altering their business models and services to remain relevant and competitive.

Now that we have a better sense of the accommodation sector, let’s visit the other half of the hospitality industry: food and beverage services. Chapter 4 explores this in more detail.

References

Accor. (2015). Brand portfolio, economy brands. Retrieved from www.accor.com/en/brands/brand-portfolio.html

Airbnb. (2015). How to host. Retrieved from www.airbnb.ca/help/getting-started/how-to-host

Anderson, C. (2012, November). The impact of social media on lodging performance. Retrieved from www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-16421.html

Boutique Hotel Association. (n.d.) Terminology and definitions for boutique and lifestyle hotels and properties. Retrieved from www.blla.org/lifestyle-hotels.htm

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Attributions

Figure 3.1 Shot from balconey by Alan Wolf is used under a CC BY-NC 2.0 license.

Figure 3.2 Banff Springs Hotel by Evan Leeson is used under a CC BY-NC-SA 2.0 license.

Figure 3.3 JONETSUpanpac07 by Jonetsu.ca is used under a CC BY 2.0 license.

Figure 3.4 The Magnolia Hotel (Victoria) 2013 by Raul Pacheco-Vega is used under a CC BY-NC-ND 2.0 license.

Figure 3.5 Wedgewood Hotel by Stewart Marshall is used under a CC BY-NC-ND 2.0 license.

Figure 3.6 The Empress by 3dpete is used under a CC BY ND 2.0 license.

Figure 3.7 Coast Bastion Hotel (Nanaimo) by Raul Pacheco-Vega is used under a CC BY-NC-ND 2.0 license.

Figure 3.8 Delta Sun Peaks Hotel by jhopkins is used under a CC BY 2.0 license.

Figure 3.9 Hotel Georgia, Rosewood Hotel Vancouver by Rishad Daroowala is used under a CC BY-ND 2.0 license.

Figure 3.10 Night Neighbours by James Wheeler is used under a CC BY-NC-SA 2.0 license.

Figure 3.11 Vicky Lee at Delta Burnaby Hotel by LinkBC is used under a CC BY 2.0 license.

Figure 3.12 Scott and Tina Visit the Pan Pacific Vancouver by Pan Pacific Hotel is used under a CC BY 2.0 license.

Figure 3.13 Cafe Pacifica Restaurant 2013 Winter Menus by Pan Pacific is used under a CC BY 2.0 license.

Figure 3.14 Airbnb by Gustavo da Cunha Pimenta is used under a CC BY-SA 2.0 license.

Figure 3.15 Waiting at baggage claim by hjl is used under a CC BY-NC 2.0 license.

Peter Briscoe and Griff Tripp

Overview

According to Statistics Canada, the food and beverage sector comprises “establishments primarily engaged in preparing meals, snacks and beverages, to customer order, for immediate consumption on and off the premises” (Government of Canada, 2012). This sector is commonly known to tourism professionals by its initials as F&B.

The food and beverage sector grew out of simple origins: as people travelled from their homes, going about their business, they often had a need or desire to eat or drink. Others were encouraged to meet this demand by supplying food and drink. As the interests of the public became more diverse, so too did the offerings of the food and beverage sector.

In 2014, Canadian food and beverage businesses accounted for 1.1 million employees and more than 88,000 locations across the country with an estimated $71 billion in sales, representing around 4% of the country’s overall economic activity. Many students are familiar with the sector through their workplace, because Canada’s restaurants provide one in every five youth jobs in the country — with 22% of Canadians starting their career in a restaurant or foodservice business. Furthermore, going out to a restaurant is the number one preferred activity for spending time with family and friends (Restaurants Canada, 2014a).

Food and Beverage Sector Performance

Figure 4.1. Foodservice spending as a percentage of total food dollars spent in Canada and the US [Long Description]

Look at Figure 4.1, which illustrates the percentage of total food dollars spent in restaurants in Canada and the United States over several years. As you can see, Americans spend significantly more of their total food dollars in foodservice establishments than in grocery stores, and in Canada we spend more of our total food dollars in the grocery store than we do in foodservice operations. It’s worth noting that Americans do not have an equivalent federal sales tax on meals comparable to our GST on foodservice sales, although there does exist in some states a sales tax on meals and alcoholic beverages (State Sales Tax Rates, 2015). This, combined with a larger population, cheaper food distribution costs, and other factors can often mean that it’s less expensive to dine out in the United States than in Canada.

For a perspective on how sales are distributed across the country by province, and how different foodservice operations perform in terms of revenue (sales dollars collected from guests), look at Tables 4.1 and 4.2.

Table 4.1 shows that the independents in BC have a much larger share of the total number of units compared with chains than any other province except Quebec. In terms of sales (Table 4.2), Ontario is the leader with almost $21 billion. Quebec, BC, and Alberta each earned $8 to $10 billion, and the other provinces had sales of less than $2 billion apiece. While BC and Alberta are almost even in total sales, BC has a third more units (restaurants), leading to lower average sales per unit.

Foodservice sales in Alberta rose by a solid 6.4% in 2013. Alberta boasts the highest average unit volume at $828,860 per year, more than $200,000 over the national average due to greater disposable income and no provincial sales tax on meals. In BC, the end of the HST (harmonized sales tax) and improved economic growth lifted total foodservice sales by a healthy 6.1% for the strongest annual growth since 2006 (Restaurants Canada, 2014a).

Now let’s take a quick look at which provinces have the most profitable foodservice operations.

Figure 4.2 Pre-tax profit margins. [Long Description]

Figure 4.2 indicates the profit margins per province. Profit is the amount left when expenses (including corporate income tax) are subtracted from sales revenue. A higher profit margin means that a greater percentage of sales is retained by the business owner, and a lower percentage is lost to operating and other costs.

The provincial variations in total sales and profit margins are due to several factors including:

• Relative level of economic activity
• Minimum wage levels
• Provincial sales taxes
• Cultural differences
• Weather
• Municipal taxes
• Percentage of market held by chains versus independents
• Number of units (restaurants)
• Density of units relative to local population
• Number of tourists or business travellers

Now that we have a sense of the relative performance of F&B operations by province, and some influences on success, let’s delve a little deeper into the sector.

Types of Food and Beverage Providers

Figure 4.3 The Keg at the Station is in a former train station in New Westminster, BC

While there are many ways to analyze the sector, in this chapter, we take a market-based, business-operation approach based on the overall Canadian market share from the Restaurants Canada Market Review and Forecast (Restaurants Canada, 2014b). The following sections explore the types of foodservice operations in Canada.

There are two key distinctions: commercial foodservice, which comprises operations whose primary business is food and beverage, and non-commercial foodservice establishments where food and beverages are served, but are not the primary business.

Let’s start with the largest segment of F&B operations, the commercial sector.

Commercial Operators

Commercial operators make up the largest segment of F&B in Canada with just over 80% market share (Restaurants Canada, 2014b). It is made up of quick-service restaurants, full-service restaurants, catering, and drinking establishments. Let’s look at each of these in more detail.

Quick-Service Restaurants

Formerly known as fast-food restaurants, quick-service restaurants, or QSRs, make up 35.4% of total food sales in Canada (Restaurants Canada, 2014b). This prominent portion of the food sector generally caters to both residents and visitors, and is represented in areas that are conveniently accessed by both. Brands, chains, and franchises dominate the QSR landscape. While the sector has made steps to move away from the traditional fast-food image and style of service, it is still dominated by both fast food and food fast; in other words, food that is prepared and purchased quickly, and generally consumed quickly.

Convenience and familiarity is key in this sector. Examples of QSRs include:

• Drive-through locations
• Stand-alone locations
• Locations within retail stores
• Kiosk locations
• High-traffic areas, such as major highways or commuter routes

Full-Service Restaurants

With 35% of the market share (Restaurants Canada, 2014b), full-service restaurants are perhaps the most fluid of the F&B operation types, adjusting and changing to the demands of the marketplace. Consumer expectations are higher here than with QSRs (Parsa, Lord, Putrevu, & Kreeger, 2015). The menus offered are varied, but in general reflect the image of the restaurant or consumer’s desired experience. Major segments include fine dining, family/casual, ethnic, and upscale casual.

Figure 4.4 A rhubarb pavlova with local Pemberton strawberries is served at Araxi Restaurant + Bar, a fine dining establishment in Whistler.

Fine dining restaurants are characterized by highly trained chefs preparing complex food items, exquisitely presented. Meals are brought to the table by experienced servers with sound food and beverage knowledge in an upscale atmosphere with table linens, fine china, crystal stemware, and silver-plate cutlery. The table is often embellished with fresh flowers and candles. In these businesses, the average cheque, which is the total sales divided by number of guests served, is quite high (often reviewed with the cost symbols of three or four dollar signs- $ $ $ or $ $ $ $).

Bishop’s in Vancouver is one of BC’s best known and longest operating fine dining restaurants. Since opening in 1985, this 45-seat restaurant has served heads of state including Bill Clinton and Boris Yeltsin, and has won awards including the Best of Vancouver. John Bishop was awarded the Governor General’s Award in 2010 (Georgia Straight, 2015).

Family/casual restaurants are characterized by being open for all three meal periods. These operations offer affordable menu items that span a variety of customer tastes. They also have the operational flexibility in menu and restaurant layout to welcome large groups of diners. An analysis of menus in family/casual restaurants reveals a high degree of operational techniques such as menu item cross-utilization, where a few key ingredients are repurposed in several ways. Both chain and independent restaurant operators flourish in this sector. Popular chain examples in BC include White Spot, Ricky’s All Day Grill, Boston Pizza, and The Old Spaghetti Factory. Independents include the Red Wagon Café in Vancouver, the Bon Voyage Restaurant near Prince George, and John’s Place in Victoria.

Figure 4.5 This is the interior of the Old Spaghetti Factory, a popular family chain, in Gastown, Vancouver. This location opened in 1970 and has stood the test of time.

Ethnic restaurants typically reflect the owner’s cultural identity. While these restaurants are popular with many markets, they are often particularly of interest to visitors and new immigrants looking for a specific environment and other people with whom they have a shared culture. Food is often the medium for this sense of belonging (Koc & Welsh, 2001; Laroche, Kim, Tomiuk, & Belisle, 2005).

Figure 4.6 The exterior of Vij’s, the flagship restaurant of Vikram Vij’s ethnic dining legacy

The growth and changing nature of this sector reflects the acceptance of various ethnic foods within our communities. Ethnic restaurants generally evolve along two routes: toward remaining authentic to the cuisine of the country of origin, or toward larger market acceptance through modifying menu items (Mak, Lumbers, Eves, & Chang, 2012).

Upscale casual restaurants emerged in the 1970s, evolving out of a change in social norms. Consumers began to want the experience of a fun social evening at a restaurant with good value (but not cheap), in contrast to the perceived stuffiness of fine dining at that time. These restaurants are typically dinner houses, but they may open for lunch or brunch depending on location. Examples in BC include the Keg, Earls, Cactus Club, Brown’s Social House, and Joey Restaurants.

Catering and Banqueting

Catering makes up only 6.8% of the total share of F&B in Canada (Restaurants Canada, 2014b) and comprises food served by catering companies at banquets and special events at a diverse set of venues. Note that banqueting pertains to catered food served on premise, while catering typically refers to off-premise service. At a catered event, customers typically eat at the same time, as opposed to restaurant customers who are served individually or in small groups.

Catering businesses (whether on-site or at special locations) are challenged by the episodic nature of events, and the issues of food handling and food safety with large groups. Catering businesses include:

• Catering companies
• Conference centres
• Conference hotels
• Wedding venues
• Festival food coordinators

Figure 4.7 Diner en Blanc Vancouver’s first event at Jack Poole Plaza

While beverages make up part of almost every dining experience, some establishments are founded on beverage sales. Let’s look at these operations next.

Drinking

With 3.5% market share (Restaurants Canada, 2014b), the drinking establishment sector comprises bars, wine bars, cabarets, nightclubs, and pubs.  In British Columbia, all businesses and premises selling alcohol must adhere to the BC Liquor Control and Licensing Act. At the time this chapter was written, significant changes were taking place in the regulations governing drinking establishments, but some general conditions have remained stable.

In BC, liquor licences are divided into liquor primary and food primary. As the name  suggests, a liquor primary licence is needed to operate a business that is in the primary business of selling alcohol. Most pubs, nightclubs, and cabarets fall into this category. A food primary licence is required for an operation whose primary business is serving food. Some operations, such as pubs, will hold a liquor primary licence even though they serve a significant volume of food. In this case, the licence allows for diverse patronage.

One noteworthy change to the licensing of pubs in BC is that children are permitted in them if they are accompanied and attended by responsible adults. While not universally adopted by pubs to date, this change in legislation is an example of the fluctuating social norms to which the sector must respond.

Figure 4.8 The Six Mile Pub in Victoria, established in 1855, British Columbia’s oldest public house

Together the commercial ventures of QSRs, full-service restaurants, catering functions, and drinking establishments make up just over 80% of the market share. Now let’s look at the other 20% of businesses, which fall under the non-commercial umbrella.

Non-Commercial

The following non-commercial entities earn just under 20% share of the foodservice earnings in Canada (Restaurants Canada, 2014b). While these make up a smaller share of the market, there are some advantages inherent in these business models. Non-commercial operations cater predominantly to consumers with limited selection or choice given their occupation or location. This type of consumer is often referred to as a captured patron. In a tourism capacity such as in airports or on cruise ships, the accepted price point for these patrons is often higher for a given product, increasing profit margins.

Institutional

Often run under a predetermined contract, this sector includes:

• Hospitals
• Universities, colleges, and other educational institutions
• Prisons and other detention facilities
• Corporate staff cafeterias
• Cruise ships
• Airports and other transportation terminals and operations

Accommodation Foodservice

These include hotel restaurants and bars, room service, and self-serve dining operations (such as a breakfast room).  Hotel restaurants are usually open to the public and reliant on this public patronage in addition to business from hotel guests. Collaborations between hotel chains and restaurant chains have seen reliable pairing of hotels and restaurants, such as the combination of Sandman Hotels and Moxie’s Grill and Bar.

Vending and Automated Foodservices

While not generally viewed as part of the food and beverage sector, automated and vending services do account for significant sales for both small and large foodservice and accommodation providers. Vending machines are located in motels, hotels, transportation terminals, sporting venues, or just about any location that will allow for the opportunity for an impulse or convenient purchase.

Business Performance for Types of Food and Beverage Operators

Figure 4.9 Share of market for different restaurant segments [Long Description]

As mentioned, the commercial sector comprises the majority of dollars earned. Figure 4.9 illustrates the difference between share of traffic and share of dollars for each subsector. We know that QSRs are much more economical and generally much busier than full-service restaurants. How does that traffic and low prices translate into market share for the different segments?

Figure 4.9 shows that QSRs attract two-thirds of all the traffic, while earning less than half of the total dollars. Family/midscale and casual dining each attract half the dollars of QSR, but they do that from much lower shares of the traffic. Meanwhile fine dining is patronized by less than 1% of the total restaurant traffic, but earns 4.2% of the dollars. The growing force of convenience stores, department stores, and other retail establishments obtain a respectable 11.5% of traffic and 10.6% of the restaurant dollar.

As you can see, while QSRs attract the greatest number of guests, the ratio of dollars earned per transaction is significantly less than that of the fine dining sector. This makes sense, of course, because the typical QSR earns relatively little per guest but attracts hundreds of customers, while a fine dining restaurant charges high prices and serves a select few guests each day.

Sales Per Segment

The sales revenues for the various segments are shown in Table 4.3. Note that QSRs and full-service restaurants are almost equal in their sales and almost completely dwarf the other commercial sectors of caterers and drinking places. It is also noteworthy that the commercial components have four times the sales volume of the non-commercial components.

Types of Food and Beverage Customers

Now that we’ve classified the sector based on business type and looked at relative performance, let’s look at F&B from another perspective: customer type. The first way to classify customers is to divide them into two key markets: residents and visitors.

The first of these, the resident group, can be further divided based on their purpose for visiting an F&B operator.  For one group, food or drink is the primary purpose for the visit. For example, think of a group of friends getting together at a local restaurant to experience their signature sandwich. For another group, food and drink is the secondary purpose, added spontaneously or as an ancillary activity. For example, think of time-crunched parents whisking their kids through a drive-through on their way from one after-school activity to the next. Here the food and beverage providers offer an expedient way to access a meal.

Figure 4.10 A visitor to Nanaimo eats a signature “Nanaimo bar” in front of a Nanaimo bar, the Jingle Pot Pub

Foodservice providers also service the visitor market, which presents unique challenges as guests will bring with them the tastes and eating habits of their home country or region. Most establishments generally follow one of two directions. One is to cater completely to visitors from the day the doors open, with an operational and market focus on tourists. The other is to cater primarily to residents.

Sometimes a local foodservice provider can continue to cater to the resident market over time. In other cases, often because of financial pressures, the business shifts its focus away from the residents to better cater to visitors’ tastes. These changes, when they do occur, generally happen over time and can lead to questions of authenticity of the local offerings (Smart, 2003; Heroux, 2002; Mak, Lumbers, Eves, & Chang, 2012).

It is clear that the food and beverage sector must remain responsive to consumers’ needs and desires. This is made evident by the emergence of health-concious eating in North America over the last two decades. The influence of books such as Fast Food Nation (Schlosser, 2012) and documentaries such as Super Size Me have created mainstream awareness about what goes into our food and our bodies. As many developed nations, including Canada, struggle with health-care concerns including hypertension, diabetes, and obesity, food operators are taking note and developing new health-conscious menus. Programs like BC’s Informed Dining initiative are helping consumers understand their options (see the Spotlight On below).

This awareness, coupled with an increasing interest and desire for more authentic foods produced without using herbicides and pesticides, free of genetically modified ingredients, and even free of carbohydrates or gluten, has placed pressure on the sector to respond, and many have (Frash, DiPietro, & Smith, 2014). Consumers are more aware of the plight of farmers and producers from faraway places and the support for fair trade practices. At the same time, there is a heightened desire for more locally grown products, and a general awareness of nutrition and the quality of products that are harvested in season and closer to home.

Consumer consciousness regarding the source and distribution of food has created a movement that champions sustainable and locally grown foods. While this trend does have its extremes, it is founded on the premise that eating food that has been produced nearby leads to better food quality, sustainable food production processes, and increased enjoyment. This has led to a number of restaurants that incorporate these concepts in their menu planning and marketing.

In addition to this trend toward “conscious consumerism” (LinkBC, 2014, p.4), F&B professionals must be highly aware of the importance of special diets including gluten-free, low-carb, and other dietary restrictions (LinkBC, 2014).

All of these influences are continuously shaping the food and beverage sector. Before we explore additional trends and issues in the sector, let’s review the core considerations for profitability in foodservice operations.

Figure 4.11 Officials announce more funding for BC farmers markets, which have become increasingly popular due to changing consumer tastes

Profitability

While many factors influence the profitability of foodservice operations, key considerations include type of business, location, cost control and profit margin, sales and marketing strategies, and human resources management. We’ve already examined the different types of operation, and their relative profit margins. Let’s look at the other profitability considerations in more detail.

Location

The selection of the correct location for a restaurant is often cited as the most critical factor in an operation’s success (or failure) in terms of profitability. Prior to opening, site analysis is required to determine the amount of traffic (foot traffic and vehicle traffic), proximity to competing businesses, visibility to patrons, accessibility, and presence (or absence) of desired patrons (Ontario Restaurant News, 1995).

Cost Control

According to Restaurants Canada, QSRs have the highest profit margin at 5.1%, while full-service restaurants have a margin of 3.5%. There will be significant variances from these percentages at individual locations even within the same brand (2014b).

Figure 4.12 Operating ratios for Canadian food and beverage businesses in 2012 [Long Description]

A number of costs influence the profitability of an F&B operation. Some of the key operating expenses (as a percentage of revenue) are detailed in Figure 4.12, above, where food cost and salaries & wages are the two major expenses, each accounting for approximately a third of the total. Other expenses include rental and leasing of venue, utilities, advertising, and depreciation of assets. These percentages represent averages, and will vary greatly by sector and location.

Cost control and containment is essential for all F&B businesses. Demanding particular attention are the labour, food, and beverage costs, also known as the operator’s primary costs. In addition to these big ticket items, there is the cost of reusable operating supplies such as cutlery, glassware, china, and linen in full-service restaurants.

Given that most operations have both a service side (interacting directly with the consumer) and production side (preparing food or drink to be consumed), the primary costs incurred during these activities often determine the feasibility or success of the operation. This is especially true as the main product (e.g., food and drink) is perishable; ordering the correct amount requires skill and experience.

Sales and Marketing

The two principal considerations for sales and marketing in this sector are market share and revenue maximization. Most F&B operations are constrained by finite time and space, so management must constantly seek ways to increase revenue from the existing operation, or increase the share of the available market. Examples of revenue maximization include upselling existing consumers (e.g., asking if they want fries with their meal; offering dessert), and using outdoor or patio space (even using rain covers and heaters to extend the outdoor season). Examples of increasing market share in the fast-food sector include extending special offers to new, first-time customers through social media or targeted direct mail.

In today’s cluttered marketplace, being noticed is a constant goal for most companies. Converting that awareness into patronage is a challenge for most operators. Restaurant reviews have been a part of the food and beverage sector for a long time. With the increase of online reviews by customers at sites like Yelp, Urbanspoon, and TripAdvisor, and sharing of experiences via social media, food and beverage operators are becoming increasingly aware of their web presence (Kwok & Yu, 2013). For this reason, all major food and beverage operators carefully monitor their online reputation and their social media presence.

One of the keys to a strong reputation, both in person, and online, is the management of human resources.

Staffing and Human Resources

Figure 4.13 Winner of Top Chef Canada Matthew Stowe and patron at a new Cactus Club restaurant opening

Appropriately staffing an F&B operation involves attracting the right people, hiring them, training them, and then assigning them to the right tasks for their skills and abilities. Many businesses operate outside the traditional workweek hours; indeed, some operate on a 24-hour schedule. Creating the right team, employing them in accordance with legal guidelines, and keeping up with the demands of the businesses are challenges that can be addressed by a well-thought-out and implemented human resources plan.

People who have long-lasting careers in the sector find the fluctuating conditions appealing; no two days are the same, and the fast-paced and energetic social environment can be motivating. Many positions provide meaningful rewards and compensation that can lead to long-term careers.

One topic of discussion in food and beverage human resources is that of gratuities (tipping). In Canada, restaurants are obligated to pay staff minimum wage, and gratuities are paid by the customer as an expression of their gratitude for service. This is not the model in countries like Australia, where service staff are paid a higher professional wage and prices are raised to accommodate this.

In British Columbia, tips are considered income for tax purposes but are not considered wages as they are not paid by the employer to the employee. A restaurant owner cannot use tips to cover business expenses (e.g., require an employee to use his or her tips to cover the cost of broken glassware). Employers are also not permitted to charge staff for the cost of diners who do not pay (known as a dine-and-dash). They can, however, require front-of-house staff pool their gratuities, or pay individually, to ensure back-of-house staff receive a percentage of the tips (British Columbia Ministry of Jobs, Tourism and Skills Training, n.d.). This is also commonly known as a tip-out.

There have been experiments with gratuity models in recent years. One example is a restaurant on Vancouver Island, which tried an all-inclusive pricing model upon opening in 2014, but reverted three months later to the traditional tipping model due to consumer demand and resistance to higher prices (Duffy, 2014).

Trends and Issues

In addition to having to focus on the changing needs of guests and the specific challenges of their own businesses, food and beverage operators must deal with trends and issues that affect the entire industry. Let’s take a closer look at these.

Government Influence

Each level of government affects the sector in different ways. The federal government and its agencies have influence through income tax rates, costs of employee benefits (e.g., employer share of Canada Pension Plan and Employment Insurance deductions), and support for specific agricultural producers such as Canadian dairy and poultry farmers, which can lead to an increase in the price of ingredients such as milk, cheese, butter, eggs, and chicken compared to US prices (Findlay, 2014; Chapman, 1994).

Provincial governments also impact the food and beverage sector, in particular with respect to employment standards; minimum wage; sales taxes (except Alberta); liquor, wine, and beer wholesale pricing (Smith, 2015); and corporate income tax rates.

Municipal governments have an ever-increasing impact through property and business taxes, non-smoking bylaws, zoning and bylaw restrictions, user fees, and operating hours restrictions.

Over time, the consequence of these government impacts has resulted in independent and chain operators alike joining forces to create a national restaurant and foodservice association now named Restaurants Canada (see Spotlight On above). At the provincial level, BC operators rely on the British Columbia Restaurant & Foodservices Association (BCRFA).

Health and Safety

Figure 4.14 A sign in a Starbucks location encouraging staff to wash their hands to prevent the spread of germs

Food and beverage providers hold a distinct position within our society; they invite the public to consume their offerings, both on and off premise. In doing so, all food and beverage operators must adhere to standardized public safety regulations. Each province has regulations and legislation that apply in their jurisdiction. In BC, this is addressed by the FoodSafe and Serving It Right programs, and compliance with the Occupiers Liability Act. These regulations and legislation are enacted in the interest of public health and safety.

FoodSafe is the provincial food safety training program designed for the foodservice industry (FoodSafe, 2009). Serving It Right is a mandatory course that is completed through self-study, and is required for anyone serving alcohol in a commercial setting. Its goal is to ensure that licensees, managers, and servers know their legal responsibilities and understand techniques to prevent over-service and related issues (go2HR, 2014).

In broad terms, BC’s Occupiers Liability Act covers the responsibilities of the occupier of a property to ensure the safety of visitors. Additional local health bylaws set standards of operation for health and safety under the direction of the medical officers of health. Public health inspectors regularly visit food and beverage operations to evaluate compliance. In some communities, these inspection results are posted online.

Collectively, the food and beverage industry in BC has an excellent reputation for ensuring the health and safety of its patrons, the general public, and its employees.

Technology Trends

Technology continues to play an ever-increasing role in the sector. It is most noticeable in QSRs where many functions are automated in both the front of house and back of house. In the kitchen, temperature sensors and alarms determine when fries are ready and notify kitchen staff. Out front, remote printers or special screens ensure the kitchen is immediately notified when a server rings in a purchase. WiFi enables credit/debit card hand-held devices to be brought directly to the table to process transactions, saving steps back to the serving station.

Other trends include automated services such as that offered by Open Table, which provides restaurants with an online real-time restaurant reservation system so customers can make reservations without speaking to anyone at the restaurant (Open Table, 2015). And now smartphone apps will tell customers what restaurants are nearby or where their favourite chain restaurant is located.

Changing Venues

The following trends relate to the changing nature of food and beverage venues, including the emerging importance of the third space, and the increased mainstream presence of non-permanent locations such as street vendors and pop-up restaurants.

The Third Space

The third space is a concept that describes locations where customers congregate that are neither home (the first space) nor work or school (the second space). Many attribute the emergence of these spaces to the popularity of coffee shops such as Starbucks. In the third space, operators must create a comfortable venue for customers to “hang out” with comfortable seating, grab and go F&B options, WiFi, and a relaxed ambiance. Providing these components has been shown as a way to increase traffic and customer loyalty (Mogelonski, 2014).

Taking It to the Street

Street food has always been a component of the foodservice industry in most big cities. These operations are often run by a single owner/operator or with minimal staff, and serve hot food that can be eaten while standing. According to research firm IBISWorld, in 2011 the “street food business — which includes mobile food trucks and non mechanized carts, is a $1 billion industry that has seen an 8.4 percent growth rate from 2007 to 2012″ (Entrepreneur, 2011) with 78% of owners having no more than four employees. 

Recently, in North America, where climate and weather allow, there has been a noticeable increase in both the number and type of street food vendors. In the city of Vancouver alone there are over 100 permitted food cart businesses, searchable by an app and sortable list — and the city uses the terms street food vendor, food cart, and food truck interchangeably (City of Vancouver, 2014).

Figure 4.15 Tacofino (closest), Pig on the Street, and Mom’s Grilled Cheese food trucks welcome crowds to their portable kitchens in downtown Vancouver.

Pop-up restaurants have also emerged, facilitated in part by the prevalent use of social media for marketing and location identification. Pop-ups are temporary restaurants with a known expiry date, which also tend to have the following in common (Knox, 2011):

• A well-known or up-and-coming chef at the helm
• An interesting, but stationary, location (a warehouse, a park, the more unusual the better)
• Staff who are adept at promotions and word-of-mouth
• Strong local foodie (food and beverage enthusiast) base in the area
• Involvement from local artists or musicians to add to the experience

As popular they are with consumers, the ways in which pop-ups deviate from restaurants has aggravated some critics, causing Bon Appétit magazine to declare that “pop-ups are not supposed to be restaurants,” and that “pop-up restaurants are over” (Duckor, 2013). Statements like these are further evidence that food and beverage services trends are dynamic and ever-changing.

Conclusion

The food and beverage sector is a vibrant and multifaceted part of our society. Michael Hurst, famous restaurateur and former chair of the US National Restaurant Association, championed the idea that all guests should be received with the statement “Glad you are here” (Tripp, 1992; Marshall 2001). That statement is the perfect embodiment of what F&B is to the hospitality industry — a mix of service providers who welcome guests with open arms and take care of their most basic needs, as well as their emotional well-being.

The social fabric of our country, its residents, and visitors will change over time, and so too will F&B. What will not change in spite of how we divide the segments — into tourists or locals — is that the sector is at its best when food and beverages are accompanied by a social element, extending from your dining companions to the front and back of the house.

So far, we have covered the transportation, accommodation, and food and beverage sectors. In the next two chapters, we’ll explore the recreation and entertainment sector, starting with recreation in Chapter 5.

References

British Columbia Ministry of Jobs, Tourism and Skills Training. (n.d.). <a href=”http://www.labour.gov.bc.ca/esb/igm/esa-part-1/igm-esa-s1-wages.htm#top” target=”_self”Interpretation guidelines manual, Employment Standards Branch. Retrieved from >www.labour.gov.bc.ca/esb/igm/esa-part-1/igm-esa-s1-wages.htm#top

Chapman, Anthony. (1994). Reduction of tariffs on supply managed commodities under the GATT and the NAFTA, tarrification under the Uruguay Round. Retrieved from: http://publications.gc.ca/Collection-R/LoPBdP/BP/bp380-e.htm

City of Vancouver. (2014, June 30). Find a street food vendor. Retrieved from http://vancouver.ca/people-programs/find-a-food-truck-vendor.aspx

Duckor, M. (2013, June 27). Pop-up restaurants are over. Bon Appétit. Retrieved from www.bonappetit.com/restaurants-travel/article/pop-up-restaurants-are-over

Duffy, A. (2014, August 22). Vancouver Island restauranteur regretfully ends his no-tip policy. Vancouver Sun. Retrieved from www.vancouversun.com/news/metro/Vancouver+Island+restaurateur+regretfully+ends+policy/10140961/story.html

Entrepreneur. (2011, July 24). Food trucks 101: How to start a mobile food business. Retrieved from www.entrepreneur.com/article/220060

Findlay, M. (2014, May 12). Why your milk costs so much and what to do about it. Macleans. Retrieved from www.macleans.ca/economy/economicanalysis/why-your-milk-costs-so-much-in-canada/

FoodSafe. (2009). Welcome. Retrieved from www.foodsafe.ca

Frash, R. E., DiPietro, R., & Smith, W. (2014). Pay more for McLocal? Examining motivators for willingness to pay for local food in a chain restaurant setting. Journal of Hospitality Marketing & Management, 24(4), 411-434.

Georgia Straight. (2015). Bishop’s. Retrieved from www.straight.com/listings/venues/114986

go2HR. (2014). Serving-it-Right. Retrieved from www.servingitright.com

Government of Canada. (2012, June 14). NAICS 2012 – 722 – Food services and drinking places. Retrieved from: www23.statcan.gc.ca/imdb/p3VD.pl?Function=getVD&TVD=118464&CVD=118466&CPV=722&CST=01012012&CLV=2&MLV=5

Heroux, L. (2002). Restaurant marketing strategies in the United States and Canada: A comparative study. Journal of Foodservice Business Research, 5(4), 95-110.

Knox, J.  (2011, June 13). Ingredients for a successful pop-up restaurant. Restaurant Central.ca. Retrieved from http://restaurantcentral.ca/popuprestaurant.aspx

Koc, M., & Welsh, J. (2001). Food, foodways and immigrant experience. Toronto: Centre for Studies in Food Security.

Kwok, L., & Yu, B. (2013). Spreading social media messages on Facebook. An analysis of restaurant business-to-consumer communications. Cornell Hospitality Quarterly, 54(1), 84-94.

Laroche, M., Kim, C., Tomiuk, M. A., & Belisle, D. (2005). Similarities in Italian and Greek multidimensional ethnic identity: Some implications for food consumption. Canadian Journal of Administrative Sciences/Revue Canadienne des Sciences de l’Administration, 22(2), 143-167.

LinkBC. (2014, June). 2014 Roundtable Dialogue Cafe Report. [PDF] Retrieved from http://linkbc.ca/siteFiles/85/files/2014RoundtableDialogueCafeReport.pdf

Lynn, M., & Withiam, G. (2008). Tipping and its alternatives: Business considerations and directions for research. Journal of Services Marketing, 22(4), 328-336.

Mak, A. H., Lumbers, M., & Eves, A. (2012). Globalisation and food consumption in tourism. Annals of Tourism Research, 39(1), 171-196.

Mak, A. H., Lumbers, M., Eves, A., & Chang, R. C. (2012). Factors influencing tourist food consumption. International Journal of Hospitality Management, 31(3), 928-936.

Marshall, A. G. (2001). In my opinion: Michael E. Hurst: July 8, 1931-March 22, 2001. Hospitality Review, 19(2), 9.

Mogelonski, L. (2014, January 3). Third spaces enrich guests’ lives. Hotel News Now. Retrieved from http://hotelnewsnow.com/Article/12908/Third-spaces-enrich-guests-lives-and-loyalty

Ontario Restaurant News. (1995). Selecting a restaurant site is key to franchise unit’s success. Reprinted in FGHI. Retrieved from www.fhgi.com/publications/articles/selecting-a-restaurant-site-is-key-to-franchise-units-success/

Open Table, Inc. (2015). Make restaurant reservations the easy way. Retrieved from www.opentable.com/start/home

Parsa, H. G., Lord, K. R., Putrevu, S., & Kreeger, J. (2015). Corporate social and environmental responsibility in services: Will consumers pay for it?. Journal of Retailing and Consumer Services, 22, 250-260.

Passikoff, Robert. (2014, November, 14). McDonald’s hopes new social media question-and-answer will modify food image. Forbes. Retrieved  from www.forbes.com/sites/robertpassikoff/2014/10/14/mcdonalds-hopes-new-social-media-qa-will-modify-food-image/

Restaurants Canada (2014a). Foodservice facts. Retrieved from https://www.restaurantscanada.org/en/Book-Store/Product/rvdsfpid/2013-foodservice-facts-7

Restaurants Canada (2014b). Market review and forecast 2014. Retrieved from https://restaurantscanada.org

Restaurants Canada, Statistics Canada, fsSTRATEGY Inc. and Pannell Kerr Forster. (2013). Sector sales and market shares for 2012/13. Retrieved from www.restaurantscanada.org/en/Research#crfaResearchReports

Schlosser, E. (2012). Fast food nation: The dark side of the all-American meal. New York, NY: Houghton Mifflin Harcourt.

Smart, J. (2003). Ethnic entrepreneurship, transmigration, and social integration: an ethnographic study of Chinese restaurant owners in rural western Canada. Urban Anthropology and Studies of Cultural Systems and World Economic Development, 311-342.

Smith, C. (2015, March 25). BC Liberal government liquor reforms pinch private retailers. Georgia Straight. Retrieved from www.straight.com/food/416961/bc-liberal-government-liquor-reforms-pinch-private-retailers

State Sales Tax Rates. (2015). Retrieved from www.sale-tax.com

Statistics Canada, Restaurants Canada, Recount/NDP Group. (2013). Performance by Province (Commercial Foodservice). Retrieved from www.restaurantscanada.org/en/Research

Tripp, Griff. (1992). Personal knowledge.

Attributions

Figure 4.1 Foodservice Share of Total FoodDollars by LinkBC is used under a CC-BY-NC 2.0 license.

Figure 4.2 Profit Margins for Restaurants by Province by LinkBC is used under a CC-BY-NC 2.0 license.

Figure 4.3 The Keg at the Station by Jon the Happy Web Creative is used under a CC BY 2.0 license.

Figure 4.4 North Arm Farm Strawberry  + Rhubarb Pavlova by Ruth Hartnup is used under a CC-BY 2.0 license.

Figure 4.5  The old spaghetti factory by Isabelle Puaut is used under a CC BY-NC-ND 2.0 license.

Figure 4.6 Vij’s by jan zeschky is used under a CC-BY-NC 2.0 license.

Figure 4.7 Dîner en Blanc Vancouver 2012 by Maurice Li Photography is used under a CC BY-NC-ND 2.0 license.

Figure 4.8 Six Mile by Alan Levine is used under a CC BY-SA 2.0 license.

Figure 4.9 Market Share by Restaurant Segment by LinkBC is used under a CC-BY-NC 2.0 license.

Figure 4.10 Life goal #5 complete by Brett Ohland is used under a CC BY-NC-SA 2.0 license.

Figure 4.11 New funding for farmers’ market program by Province of British Columbia is used under a CC BY-NC-ND 2.0 license.

Figure 4.12 Operating Ratios for Canadian Foodservice Businesses by LinkBC is used under a CC-BY-NC 2.0 license.

Figure 4.13 Cactus Club Cafe by Mack Male used under CC BY-SA 2.0 license.

Figure 4.14 must wash hands by Ambernectar13 is used under CC BY-ND 2.0 license.

Figure 4.15 Vancouver food carts on a sunny day by Christopher Porter is used under a CC BY-NC-ND 2.0 license.

Long Descriptions

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Don Webster

Overview

In this chapter, we discuss the concept of recreation in tourism and hospitality. Recreation can be defined as the pursuit of leisure activities during one’s spare time (Tribe, 2011) and can include vastly different activities such as golfing, sport fishing, and rock climbing. Defining recreation as it pertains to tourism, however, is more challenging.

Figure 5.1 Climbers in Squamish, BC

Let’s start by exploring some recreation-based terms that are common in the tourism industry. Outdoor recreation can be defined as “outdoor activities that take place in a natural setting, as opposed to a highly cultivated or managed landscape such as a playing field or golf course” (Tourism BC, 2013, p. 47).  This term is typically applied to outdoor activities that individuals engage in and that are located close to their community. When these activities are further away, and people must travel some distance to participate in them, they are often described as adventure tourism.

According to the United Nations World Tourism Organization (UNWTO), adventure tourism is “a trip that includes at least two of the following three elements: physical activity, natural environment, and cultural immersion” (UNWTO, 2014, p.12).  Examples of adventure tourism in BC include river rafting, helicopter skiing, and rock climbing.

Adventure tourism can be “soft” or “hard.” Differentiating between the two is somewhat subjective, but is loosely based on the level of experience required, the level of fitness required, and the degree to which the participant is exposed to risk (UNWTO, 2014).  Examples of soft adventure include wildlife viewing or moderate hiking, whereas river rafting or rock climbing would usually be considered hard adventure.

Another term that is used, one that overlaps with the definitions of outdoor recreation and adventure tourism, is nature-based tourism, which refers to “those tourism experiences that are directly or indirectly dependent on the natural environment” (Tourism BC, 2005b, p.6).  This term is often used to describe activities that are closely connected to nature, such as whale watching, birding, or self-propelled travel such as hiking and kayaking.

As you can see, there are challenges in classifying recreation in tourism. For instance, if people kayak near their home or community, it may be considered outdoor recreation. If they travel afar for that same activity, it likely is designated as adventure tourism. If the kayaking is done in protected, mild conditions, it would be considered soft adventure, but if done in a challenging and risky river descent, it may be classified as hard adventure.

Of course, each of the above scenarios of kayaking could be considered nature-based tourism if it is strongly linked to the natural environment. Ultimately, categorization is based on a combination of several factors, including manner of engagement in the activity (risk exposure, experience requirement, group or solo activity), the distance travelled to access the activity, and the type of environment (proximity to nature, level of challenge involved) that that the activity occurs in.

A 2013 adventure tourism market study discovered that people who travel for adventure experiences tend to be well-educated, with 48% holding a four-year degree or higher credential. They value natural beauty and rank this as the highest factor when choosing a destination, and the most cited reasons for their travel are relaxation “relaxation, exploring new places, time with family, and learning about different cultures” (UNWTO, 2014, p.15).

Globally, it is estimated that the continents of Europe, North America, and South America account for 69% of adventure tourism, or US$263 billion in adventure travel spending. Adventure tourists tend to be seen as high-value visitors, with as much of 70% of their expenditures remaining in the communities visited (UNWTO, 2014).

The size, extent, and economic contribution of recreation, outdoor recreation, and adventure tourism in British Columbia is also substantial. The rest of this chapter explores the sector in the province in more detail.

Recreation and Adventure Tourism in BC

Studies have shown that nearly all residents of BC partake in some kind of outdoor recreation activity during any given year. Approximately 85% of those participants indicate that these recreational activities were very important to them (Tourism BC, 2013).

Figure 5.2 Joffre Lake Provincial Park, where adventure tourists access secluded camping spots by carrying (or boating) in their gear

It is estimated that there are approximately 2,200 outdoor/adventure tourism operators in BC. In 2001, this accounted for 21,000 jobs and $556 million in direct wages. The last sector-wide study in 2005 estimated that business revenues in outdoor adventure tourism accounted for approximately $854 million in annual business revenues (Tourism BC, 2013). Given the growth of adventure tourism over the last decade, it is likely these numbers have risen.

Additionally, in the current five-year provincial tourism strategy, entitled Gaining the Edge, outdoor/adventure tourism is indicated as one of six key areas targeted for growth (British Columbia Ministry of Jobs, Tourism and Innovation, 2012). This government support, combined with the rapid growth of the outdoor and adventure tourism industry, point to a strong future for this sector.

This section covers two key types of recreation and tourism, with a focus on British Columbia:

1. Land-based recreation and tourism
2. Water-based recreation and tourism

It’s not possible to detail all the recreational activities available in BC, but by the end of this section, you will have an understanding of the key unique activities available in the province.

Land-Based Recreation and Tourism

Golf Courses and Resorts

A 2009 economic impact study found that more than six million Canadians participate in the game of golf each year, making this sport the number one outdoor recreational activity in Canada based on participation. Golf also directly employs more than 155,000 people and contributes more than $11 billion directly to Canada’s gross domestic product. BC has over 300 golf course facilities, and with over $2 billion annually in direct economic activity, the golfing industry in the province is the fourth largest in Canada (Strategic Networks Inc., 2009).

Golf is a significant tourism attraction in BC; in 2007 the province was chosen as the “Best Golf Course Destination in North America” by the International Association of Golf Tour Operators (Destination BC, 2014c).  Part of the draw is the diverse environment; golfers can choose from lush coastal forests to desert environments, and many courses have a viewscape of mountains or the ocean.

A 2006 study by the Canadian Tourism Commission (CTC) detailed both demographic and economic factors related to the Canadian golf industry. Significant findings included that there were more than 3.4 million golf travellers in Canada annually, and that of those travellers, approximately 34% travelled to BC. In addition, the Canadian golf participation rate (for the total Canadian population) was 21.5%, which is among the highest golf participation rates of any country in the world. Golfing provides an opportunity to attract significant tourism revenue as the average golf traveller has a much higher than average income level, with up to 50% of all golf travellers earning $100,000 or more per annum (Tourism BC, 2009b).

Mountain Resorts and Nordic Centres

Resorts in British Columbia range from smaller eco-lodges to large ski areas. Mountain resorts and nordic centres are part of the larger resort tourism sector, which in 2004 was valued at $1.9 billion (Tourism BC, 2011c).

Figure 5.3 A man stands ready to ski down Blackcomb mountain in Whistler, BC

Ski/Snowboard Mountain Resorts

BC’s many world-class facilities and high-quality snow conditions provide mass appeal for downhill skiing and snowboarding. Mountain resorts in BC can be separated into two principal categories: destination resorts and regional resorts. Destination mountain resorts are often significantly larger and offer a greater range of amenities such as on mountain accommodation and food services; they are also generally marketed to out-of-area and international visitors. Examples of a destination resort would include Whistler Blackcomb Ski Resort. On the other hand, regional mountain resorts are usually smaller in size and capacity, have fewer amenities, and often cater more directly to the local community (Tourism BC, 2011c) such as Whitewater Ski Resort in the Kootenay Rockies.

The aggregate economic value of destination mountain resorts is significant; one study by Tourism BC found that 13 of these resorts were responsible for generating approximately 1.1 billion in revenue, or 8% of the total provincial tourism revenues in 2008. Additionally, they provided the equivalent of 14,267 full-time equivalent jobs (Tourism BC, 2011c). Furthermore, BC’s top mountain resorts have received many prestigious awards (Tourism BC, 2011c, p. 11):

• Whistler Blackcomb has consistently been named the #1 ski resort in North America.
• In 2009, Sun Peaks was named one of the “Top 20 Ski Resorts in North America” by 
Condé Nast Traveler.
• Big White Ski Resort was recognized in 2009 as a “Top 5 Family Resort” by the UK-based Sunday Times.

The publicity that these resorts receive has undoubtedly reflected positively on the rest of the BC tourism industry.

Nordic Centres

Nordic skiing, also commonly known as cross-country skiing, is a low-risk, low-impact winter sport popular across Canada. It differs from backcountry skiing in that participants ski on groomed trails typically maintained as part of an established facility (Cross Country BC, n.d.).

With more than 50 cross-country ski centres across BC, and a season that often exceeds that of downhill skiing (November to May in many areas), the sport attracts large numbers of local and inbound recreation enthusiasts. Trail networks have been developed in both stand-alone environments, as well as in partnership with large mountain resorts such as Silver Star in Vernon, Sun Peaks in Kamloops, Cypress Mountain above Vancouver, and Rossland in the Kootenays. Many of these trail networks offer both groomed and track-set trails, a number are lit for night skiing.

Backcountry Skiing and Snowboarding

Backcountry skiing and snowboarding offers a recreational activity in a wilderness setting, away from any established mountain resorts, lifts, or trails. BC is regarded as a world-class destination for backcountry access, and has recently seen considerable and sustained growth in this sector (Porteus, 2013). The motivator for pursuing this activity for most people is primarily the lure of fresh, untracked snow in a beautiful mountain setting. Some backcountry skiers and snowboarders combine this activity with helicopter or snowcat skiing.

Helicopter skiing transports skiers and snowboarders by helicopter to the backcountry. It is typically a professionally guided activity, with packages ranging in duration from a single day to weeks. The skiing/snowboarding is often packaged with a luxury lodge accommodation, gourmet meals, and access to spa treatments.

Heliskiing was pioneered in Canada by Swiss mountain guide Hans Gmoser, who founded the company Canadian Mountain Holidays, which has grown to be the largest heliskiing company in the world (Canadian Mountain Holidays, n.d.).  Today, there are close to 20 helicopter skiing companies in BC, which represents the largest concentration of commercial operations in the world (HeliCat Canada, n.d.).

Snowcat skiing is alpine skiing accessed by travelling to the top of the ski area in a snowcat (an enclosed cab vehicle on tracks). As with heliskiing, this activity also has its commercial roots in BC. Snowcat skiing was pioneered in 1975 by Selkirk Wilderness Skiing as an alternative to both lift-serviced and helicopter-accessed riding and skiing (Selkirk Wilderness Skiing, n.d.).  It is typically a guided activity due to the avalanche risk associated with the terrain. As with heliskiing, snowcat skiers have the option of choosing single-day or multi-day vacation packages. During the winter of 2015, there were 11 established snowcat skiing operations in BC (HeliCat Canada, n.d.).

Guides for these operations are typically certified by either the Association of Canadian Mountain Guides (ACMG) or the Canadian Ski Guide Association (CSGA).  Both organizations assess the guides for their expertise in technical skills, avalanche forecasting, risk management and emergency response before issuing certification. The process is extensive and rigorous, taking much time and commitment for guides to become fully certified.

Off-Road Recreational Vehicles

An off-road recreational vehicle (ORV) is any vehicle designed to be driven off road that is not included within any other vehicle classification framework. This includes snowmobiles, all-terrain vehicles (ATVs), and dirt bikes (British Columbia Ministry of Forest, Lands and Natural Resource Operations, 2014). ORV use is recognized as a considerable contributor to the BC economy, owing primarily to recreational users, but also from tourist visits.

Figure 5.4 Snowmobiles ready for their riders near Golden, BC

Recreational snowmobiling in BC is represented by the British Columbia Snowmobile Federation (BCSF). The BCSF’s mandate is to represent recreational snowmobile clubs through advocacy, education, and stewardship (BCSF, n.d.). Commercial snowmobiling is represented by the British Columbia Commercial Snowmobile Operators Association (BCCSOA), a group of snowmobile tour operators who have mobilized to support marketing, product development, and government advocacy initiatives (BCCSOA, n.d.).

ORV use has long been the subject of conflict between non-motorized and motorized recreational users of the wilderness. Non-motorized users claim that motorized users negatively impact the wilderness through noise pollution and environmental damage by degrading trails and scaring wildlife (Webster, 2013).  Recently, wilderness tourism operators who hold Crown land tenure to operate in remote areas have complained that ORVs negatively affect their visitors’ experiences. Some of these conflicts may now be mitigated through the implementation of the Off-Road Vehicle Act, which was passed in 2014.  This Act requires mandatory registration of ORVs, and includes elements that promote safety, enforcement of regulations, education, and outreach (British Columbia Ministry Forest, Lands and Natural Resource Operations, 2014).

Guest Ranchers and Hunting Outfitters

Guest and Dude Ranches

Guest ranches and dude ranches offer personal and home-like vacation experiences centered on horseback riding and an authentic ranch experience. These operators typically offer accommodation in a ranch-type environment, and include as part of the experience the opportunity to participate in ranch activities such as horse riding and cattle wrangling. Other services and activities may also be available, such as spa treatments, hiking, canoeing, and fishing (BC Guest Ranchers Association, n.d.).

A 2011 study of guest ranches by Tourism BC found that there were 57 operating ranches in the province. Most of these were small operations with one to five employees and serving fewer than 1,000 clients per year (Tourism BC, 2011a). There are also large operations such as the Hills Health Guest Ranch located near 100 Mile House, which can accommodate hundreds of guests at one time. The ranch features a full on-site spa and two dining rooms, and hosts a multitude of special events each year. Two other examples of unique guest ranch operations are the Siwash Lake Ranch in south-central BC, a “high-end” exclusive resort featuring executive-chef prepared meals, and the Echo Valley Ranch and Spa in the BC interior, offering an alternative therapy spa and gold-panning excursions.

Hunting Outfitters

Hunting is a traditional recreational activity in BC, and it is also one of the original tourism products in the province (GOABC, n.d.). BC is fortunate to have a vast amount of wilderness available for hunting activities.  The exact size of the hunting market is difficult to quantify, but in 2003, a study found that 5,000 non-resident hunting licences were sold in BC, contributing $46 million to the provincial economy (CTC, 2012).

Some people choose self-guided hunting activities, but to hunt certain species, a guide outfitter must be hired. Guide outfitters are licensed by the BC Government to provide commercial hunting services for non-residents. This commercial hunt service directly employs more than 2,000 BC residents and generates approximately $116 million in economic activity annually (GOABC, n.d.). Many of these outfitters are small family operations  based in rural areas; they are a source valuable economic activity in areas with limited resources (GOABC, n.d.).

Cycling

Cycling is a popular recreational activity in BC thanks to a variety of terrain, spectacular scenery, and favourable weather conditions, with approximately 44% of residents participating each year (Tourism BC, 2013). Cycling also attracts out-of-province visitors. One study from 2008 reported that out of 5.6 million Canadians who travelled to BC over a two-year period, almost one million (17%) had participated in a cycling activity (Tourism BC, 2009).

Cycling can be generalized into two styles: road cycling and mountain biking.

Road cycling appeals to those who want to travel on paved roads on bikes designed for travelling long distances efficiently and effectively. Road cycling may refer to racing, both recreational and professional, or cycle touring, where cyclists travel by bike on single- or multi-day trips. Given the multitude of rolling hills, mountain passes, and stunning vistas, BC is regarded as a premier cycle touring destination (Destination BC, 2014b).

Figure 5.5 Cyclists in action

Mountain biking generally involves riding on unpaved routes and trails either specially designed for biking or for multipurpose use. BC’s reputation as a prime mountain biking destination has grown because of the unique array of trails available, ranging from the steep, challenging routes of Vancouver’s North Shore, to the high alpine cross-country routes found in the South Chilcotin Mountains (Tourism BC, 2011b).

Over the years, mountain biking has grown from being a fringe activity to a mainstay of the tourism economy. In fact, the growth potential of mountain biking is so highly regarded that the BC Government now considers it as one of the top growth areas in the outdoor adventure sector (Tourism BC, 2011b).

Indeed, numerous mountain winter resorts such as Whistler Blackcomb, Silverstar, and Kicking Horse have developed mountain biking trail infrastructure and lift-accessed biking to provide off-season activities. World-class mountain biking races such as the Test of Metal and the BC Bike Race bring thousands of riders through small communities for mountain biking. The economic impact of these events is significant. Over the course of a single four-month season in the Sea-to-Sky Corridor in 2006 (including the communities of North Vancouver, Squamish, and Whistler), the economic contribution of mountain biking to local economies was $10.3 million (Western Canada Mountain Bike Tourism Association, 2006).

Camping and Hiking

In 2012, over 19.3 million people visited BC provincial parks, including 16.8 million day visitors, many of whom used the parks for hiking and exploration in addition to picnics, swimming, and other outdoor activities. Of these visitors, 2.3 million were overnight campers, generating $15.5 million in user fees, with an average guest satisfaction rating of 82% (BC Parks, 2012). As discussed in Chapter 3, there are also a number of private camping providers in the province.

Wildlife Viewing

Given the diversity and richness of our natural environment, it is not surprising that there is a thriving wildlife viewing industry in BC. This includes whale, bird, and bear watching as well as travelling to view the northern lights or alpine flowers (CTC, 2007). One study conducted by the Canadian Tourism Commission established that within BC, approximately 37% of tourists took part in wildlife viewing while visiting. Significantly, for 13% of visitors, the primary motivation for their travel to BC was wildlife viewing (CTC, 2007).

Whale watching occurs along the coast of BC, with tours sometimes leaving from major urban centres, but more commonly from smaller communities such as Telegraph Cove on northern Vancouver Island. Tours are typically by boat, on vessels ranging from open, 10-passenger Zodiacs, to comfortable cabin cruisers with inside seating. The most commonly observed whale is the orca, one of the province’s most distinctive animals. Other whales like the humpback, minke, and Pacific grey are also frequently encountered. The province’s vast diversity of marine life is a key attraction of the tours; in addition to whale watching, a typical tour may encounter bald eagles, sea lions, porpoises, and a variety of sea birds (Destination BC, 2014,d).

Bear viewing — whether for black bears, grizzly bears, or the rare kermode bear — is also popular. Black bears are common across all regions of BC. Grizzly bears are more likely to be found in remote and mountainous regions; they have an estimated population in the province of approximately 16,000. Kermode bears, also called spirit bears, are a subspecies of black bears with a genetic trait that produces white fur instead of black. They are found primarily in the Great Bear Rainforest of the Central Coast, and figure prominently in the spiritual traditions of BC’s Coastal First Nations. The spirit bear is also BC’s official animal (Destination BC, 2014a).

Figure 5.6 A bear in Bute Inlet, BC

Tourism operators that offer bear viewing typically operate in remote regions of BC. They may utilize raised viewing areas or operate from a boat-based platform, and offer accommodation at night. The season is typically limited to May through October, with the highest chances of viewing success during the salmon spawning season in the fall.

Now that we’ve explored some of the key land-based tourism and recreational experiences in BC, let’s turn to the water.

Water-Based Recreation and Tourism

Water-based recreation and tourism in BC is extensive and varied. The coastline of more than 25,000 kilometres in length provides ideal opportunities for recreation and tourism (BC Adventure, n.d.).  Activities include scuba diving, boat tours, sport fishing, paddle sports, and more. Following is an overview of a few core water-based activities offered by BC tourism operators, as well as a brief description of their economic contributions and related industry organizations.

Figure 5.7 Kayakers waiting near whitewater rapids

Scuba Diving

BC waters offer scuba divers a rich diversity of marine life such as giant Pacific octopuses, wolf eels, sixgill sharks, soft corals, and cloud sponges. As well, a variety of dive sites are available, including marine parks, protected natural areas, sunken naval vessels, artificial reefs, historic wrecks, and even a submerged fuselage of a Boeing 737 airliner (Dive Industry Association of BC, n.d.).

A 2004 study conducted by the Dive Industry Association of BC found that the dive industry in BC consisted of 116 operators offering services to tourists and residents alike. The many segments of the industry include manufacturers, distributers, dive charters, dive shops, and instructional centres. The study estimated that gross revenues from this industry at $15 million, although this number failed to account for other indirect spending such as trip-related accommodation and transportation. It is likely that the actual economic value of this subsector is actually significantly larger (Ivanova, 2004).

Sport Fishing and Lodges

There is a long and rich history of sport fishing in BC. Anglers are drawn to the province’s tidal waters (for salmon and halibut) and to freshwater rivers and lakes (for trout, steelhead, and sturgeon). The annual rate of recreational participation is significant; a 2009 study estimated that there are nearly 600,000 anglers (either fresh or saltwater) in any given year in BC (Tourism BC, 2009). Furthermore, non-resident anglers contributed almost $6 million by way of licensing fees, and an additional $46 million in non-fishing expenditures to the economy of BC. The British Columbia Fishing Resorts and Outfitters Association (BCFROA) represents commercial freshwater resorts and outfitters and delivers advocacy, conservation, and marketing efforts on behalf of its members (BCFROA, n.d.).

Paddle Sports

River rafting, canoeing, sea kayaking, and standup paddle boarding (SUP) are common activities for both recreationists and tourists alike in BC.  Collectively, these sports fall under the paddle sports category, which encompasses any activity that takes place in small boats propelled by paddles (Education Scotland, n.d.).  Although all paddle sports are popular recreational activities, two of the more sizable and commercially productive paddle sports subsectors are river rafting and sea kayaking.

River rafting operators can be found on many rivers across BC. Product offerings may range from a three-hour adrenaline-fuelled tour on the famous Fraser River to a 14-day wilderness exploration down the UNESCO World Heritage Tatshenshini-Alsek Rivers in northern BC.  These trips consist primarily of three types of rafting: paddle rafting, motorized rafting, and float trips (Destination BC, n.d.).

Commercial rafting in BC is represented by the British Columbia River Outfitters Association (BCROA), which acts as a regulatory and marketing organization for river rafting in the province. Guides are required to be certified at one of three levels: guide, senior guide, or trip leader.  Each river in BC that is commonly rafted has an extensive set of safety requirements called “provisions” listed by the BCROA. These provisions set out the minimum level of guide required, acceptable water levels ranges, and type of equipment needed for each river excursion (BCROA, n.d.).

Figure 5.8 A rafting trip with Canadian Outback Adventures and Events near Squamish, BC

A 2005 study conducted by Tourism BC identified 59 operators offering river rafting trips in the province. With an average of 5.5 employees, these operations are typically small in comparison to other industry subsectors. Collectively, however, they provided services to 216,000 customers and contributed almost $15 million in gross revenues to the BC economy in 2005. The same study also indicated that up to 75% of participants had travelled to join in the activity, indicating that they can predominantly be classified as adventure tourists (Tourism BC, 2007a).

Sea kayaking in BC has grown into a sizable recreational and commercial industry in recent years. The province is highly regarded internationally for its long coastline punctuated by many inlets and fjords. Kayaking trips may be as short as an afternoon harbour tour, or as long as a seven-day wilderness exploration to the remote regions of Vancouver Island. Noteworthy areas for sea kayakers include Pacific Rim National Park on western Vancouver Island, Johnstone Strait on northern Vancouver Island, and Gwaii Haanas National Park in Haida Gwaii.

A 2005 report entitled British Columbia’s Sea Kayaking Sector identified more than 114 operators offering rentals, instruction, day tours, or multi-day tours.  These operators reported gross revenues of approximately $14 million in 2005 (Tourism BC, 2005a).

Trends and Issues

As shown throughout this chapter, recreation, outdoor recreation, and adventure tourism play predominant roles in the tourism and hospitality industry in BC. However, there are challenges that impact the viability of this sector, as well as barriers that limit the growth. These topics are discussed briefly here.

Land Use

Access to wilderness areas for tourism operators is an ongoing challenge. Some zones across the province are set aside for recreation, such as provincial and national parks. However, when it comes to conducting commercial operations in these same places, gaining access often involves an extensive permitting process that may impose restrictions on the type of activity and the number of visitors allowed.

In addition, parks are generally limited to non-motorized activities, thus presenting barriers for tourism operators that seek to offer mechanized recreation. Operators using Crown land for commercial activities also require authorization from the provincial government; in some instances, priority may be given to resource extraction or development. The permitting process can be onerous and time consuming, which for small operators, may be a barrier to growth (Wilderness Tourism Association, 2005).

Environmental issues are discussed in detail in Chapter 10.

Environmental Impacts

Figure 5.9 “Absolutely nothing is allowed here”

Environmental impacts from climate change, deforestation, and resource extraction all have significant potential to affect this sector of the tourism economy. On a local scale, competition with resource extraction for wilderness areas is a vital issue; without reliable access to pristine wilderness, many operators are facing threats to their sustainability (Wilderness Tourism Association, 2005).  Indeed, conflicts with the oil and gas industry, forestry, and mining are constant management challenges for wilderness tourism operators. On a global scale, climate change threatens tourism in BC in many ways, including irregular and insufficient snowfall for winter operations, the pine beetle epidemic sweeping through the province’s forests, and climate-related stress impacting prime wildlife viewing of species such as whales and bears. Environmental issues are discussed in detail in Chapter 10: Environmental Stewardship.

Risk Management

Concerns over risk management and litigation are ongoing for any operator that offers activities with an element of risk. When lawsuits in adventure tourism occur, they are often extensively publicized by the media, creating a perception of risky, dangerous, and irresponsible adventure operators. This can negatively affect the sector through rising insurance rates, increasing governmental regulation, challenging certification requirements, and permitting difficulties when interfacing with land management agencies.

With the popularity of backcountry skiing, snowboarding, snowmobiling, snowshoeing, and other winter sports on the rise in BC, the number of participants accessing backcountry areas is increasing (Mitsui, 2013). This is becoming a concern for long-time backcountry enthusiasts as well as safety monitors such as Avalanche Canada. As winter and summer backcountry equipment becomes more readily accessible, people are able to equip themselves without having received advanced safety training.

The increase of backcountry users will continue to expose users to possible dangerous situations. The best scenario is to ensure users receive proper training and education before they venture into the backcountry areas.

Other elements of risk and liability are discussed further in Chapter 11.

Conclusion

Despite some of the challenges faced by recreation, outdoor recreation, and adventure tourism, the industry as a whole remains an exciting, dynamic, and growing sector of the BC tourism economy. Employment opportunities abound, and the potential for economic contribution to the province, protection of wilderness areas, and diversification of rural economies away from resource extraction are exciting prospects. BC is uniquely positioned to maintain positive growth in this area, contingent upon government support to address the barriers and challenges listed above. Students looking to develop professionally in this field should strive to gain both hands-on experience in a specialized activity, and a strong tourism focused education; this combination will offer the best chance to open doors to a long-term career in this exciting industry.

Now that we understand the importance of recreation to the tourism industry, especially in BC, let’s explore Chapter 6, which looks at entertainment, the other half of this industry classification.

References

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BC Fishing Resorts and Outfitters Association. (n.d.). About BCFROA. Retrieved from: http://bcfroa.ca/about-bcfroa

BC Guest Ranchers Association. (n.d.). Requirements.  Retrieved from: www.bcguestranches.com

BC Parks. (2012). 2011/2012 Statistics Report. [PDF] Retrieved from http://www.env.gov.bc.ca/bcparks/research/statistic_report/statistic_report_2012.pdf

British Columbia Ministry of Forests, Lands and Natural Resource Operations. (2014). Off-Road Vehicle Act. Retrieved from: https://www.leg.bc.ca/40th2nd/1st_read/gov13-1.htm

British Columbia Ministry of Jobs, Tourism and Innovation. (2012). Gaining the edge: A five-year strategy for tourism in BC. [PDF]  Retrieved from: http://www.jtst.gov.bc.ca/tourismstrategy/documents/mjti_tourismstrategyreport_fnl.pdf

British Columbia River Outfitters Association. (n.d.). Provisions. [PDF] Retrieved from www.bcroa.com/sites/default/files/river_raft2002_revisedmanual.pdf

British Columbia Snowmobile Federation (n.d.). About BCSF. Retrieved from: http://bcsf.org

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Canadian Tourism Commission. (2007). TAMS 2006-Canadian activity profile: Wildlife viewing while on trips. [PDF] Retrieved from: http://en-corporate.canada.travel/sites/default/files/pdf/Research/Product-knowledge/TAMS/Canadian%20Travellers%20Outdoor%20Activity/CDN_Wildlife_Viewing_en.pdf

Canadian Tourism Commission. (2012). Sport fishing and game hunting in Canada: An assessment on the potential international tourism opportunity. [PDF] Retrieved from: http://en-corporate.canada.travel/sites/default/files/pdf/Research/Product-knowledge/Product-research/07082013_the_hunting_landscape_rev1.pdf

Cross Country BC. (n.d.). About us. Retrieved from: http://www.crosscountrybc.ca/about

Destination BC. (2014a). Bear viewing. Retrieved from: www.hellobc.com/british-columbia/things-to-do/parks-wildlife/bear-watching.aspx

Destination BC. (2014b). Biking. Retrieved from: www.hellobc.com/british-columbia/things-to-do/outdoor-activities/biking.aspx

Destination BC. (2014c). Golfing. Retrieved from: http://www.hellobc.com/british-columbia/things-to-do/outdoor-activities/golf.aspx

Destination BC. (2014d). Whale watching. Retrieved from: www.hellobc.com/vancouver-island/things-to-do/parks-wildlife/whale-watching.aspx

Destination BC. (n.d.) River rafting British Columbia. Retrieved from http://www.hellobc.com/british-columbia/things-to-do/water-activities/river-rafting.aspx

Dive Industry Association of BC. (n.d.). About us. Retrieved from: www.diveindustrybc.com

Education Scotland. (n.d.). Paddlesports. Retrieved from: http://www.educationscotland.gov.uk/learningteachingandassessment/approaches/outdoorlearning/healthandsafety/guides/activityguidance/paddlesports.asp

Guide Outfitters Association of BC. (n.d.). Economic contribution. Retrieved from: www.goabc.org/economic-contribution.aspx

HeliCat Canada. (n.d.). Our members. Retrieved from: http://www.helicatcanada.com/our-members/heliskiing-members.html

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Mitsui, E. (2013). Popularity of backcountry skiing worries some in industry. CBC News. Retrieved from http://www.cbc.ca/news/canada/popularity-of-backcountry-skiing-worries-some-in-industry-1.1313223

Outdoor Recreation Council of BC. (2014). About Us. Retrieved from: http://orcbc.ca/about_mission.htm

Porteus, S. (March 6, 2013). The growing business of the backcountry. BC Business. Retrieved from: www.bcbusiness.ca/tourism-culture/the-growing-business-of-the-backcountry

Selkirk Wilderness Skiing (n.d.). About us. Retrieved from: www.selkirkwilderness.com/about_us/

Strategic Networks, Inc. (2009). Economic impact for golf in Canada. [PDF] Retrieved from:  http://www.pgaofcanada.com/Userfiles/SNG_NAGA_Impact%20GolfCanada_2009_KeyFindings_EN_Issued%20Aug17_09(1).pdf

Tourism BC. (2005a). British Columbia River Outfitters report. Retrieved from: http://www.destinationbc.ca/Research/Research-by-Activity/Water-based.aspx#.VIYlbb4irzI

Tourism BC. (2005b). Characteristics of commercial nature-based tourism industry in British Columbia [PDF]. Retrieved from:  http://www.destinationbc.ca/getattachment/Research/Research-by-Activity/Land-based/Economic_Impacts_of_Commercial_Nature-Based_Tourism_Report-sflb.pdf.aspx

Tourism BC. (2007a). British Columbia’s sea kayaking sector 2005. [PDF] Retrieved from: http://www.destinationbc.ca/getattachment/Research/Research-by-Activity/All-Research-by-Activity/British-Columbia-s-Sea-Kayakers-Report-(2005),-Dec/British_Columbia_s_Sea_Kayakers_Report_2005-sflb.pdf.aspx

Tourism BC. (2007b). Travel activities and motivations of Canadian residents: An overview. [PDF] Retrieved from: http://www.destinationbc.ca/getattachment/Research/Travel-Motivations-(TAMS)/Canadian-Travel-Motivations/Canadian_TAMS_Overview_Report.pdf.aspx

Tourism BC. (2009a). Fishing product overview. Retrieved from: http://www.destinationbc.ca/getattachment/Research/Research-by-Activity/Water-based/Fishing_Sector_Profile.pdf.aspx

Tourism BC. (2009b). Golf sector profile [PDF]. Retrieved from: http://www.destinationbc.ca/getattachment/Research/Research-by-Activity/Land-based/Golf_Sector_Profile.pdf.aspx

Tourism BC. (2009c). Wildlife viewing product overview. [PDF] Retrieved from: http://www.destinationbc.ca/getattachment/Research/Research-by-Activity/Land-based/Wildlife_Viewing_Sector_Profile.pdf.aspx

Tourism BC. (2011a). Guest ranchers business survey 2008/2009. [PDF] Retrieved from:  http://www.destinationbc.ca/getattachment/Research/Research-by-Activity/All-Research-by-Activity/Guest-Ranchers-Business-Survey-2008-2009,-January/GuestRanchersReport2008_2009.pdf.aspx

Tourism BC. (2011b). Mountain bike tourism guide. Retrieved from: http://www.destinationbc.ca/Research/Research-by-Activity/Land-based.aspx#.VIYqOr4irzI

Tourism BC. (2011c). The value of mountain resorts to the British Columbia economy. [PDF] Retrieved from: http://www.destinationbc.ca/getattachment/Research/Research-by-Activity/All-Research-by-Activity/Value-of-Mountain-Resorts-to-the-British-Columbia/Value_of_Mountain_Resort_Properties_Phase_One_June-2012.pdf.aspx

Tourism BC. (2013). 2009/2010 Outdoor recreation study. [PDF] Retrieved from: http://www.destinationbc.ca/getattachment/Research/Research-by-Activity/All-Research-by-Activity/Outdoor-Recreation-Study-2009-2010,-January-2013/Outdoor-Recreation-for-Distribution-14Jan13-FINAL-DRAFT-(2).pdf.aspx

Tribe, J. (2011). The economics of recreation, leisure, and tourism. 4th Edition. Oxford, England: Elsevier.

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Webster, D. (2013). Adventure tourism operators and snowmobiles: Managing interactions. [PDF] Retrieved from: https://dspace.royalroads.ca/docs/bitstream/handle/10170/660/webster_donald.pdf?sequence=1

Western Canada Mountain Bike Tourism Association. (2006). Sea-to-sky mountain biking economic impact study. [PDF] Retrieved from:  http://www.mbta.ca/assets/pdfs/S2S_E_I_Study.pdf

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Attributions

Figure 5.1  Up and over by Ruth Hartnup is used under a CC-BY 2.0 license.

Figure 5.2 Row Your Boat by Matt Hosford is used under a CC-BY 2.0 license.

Figure 5.3 Blackcomb by Jeff Wilcox is used under a CC-BY 2.0 license.

Figure 5.4 Snowmobiling by Shazron is used under a CC-BY 2.0 license.

Figure 5.5 Cyclists by Jason Sager is used under a CC-BY-SA 2.0 license.

Figure 5.6 A bear in Bute Inlet, BC by John Critchley is used under a CC-BY 2.0 license.

Figure 5.7 Waiting in line by Ruth Hartnup is used under a CC-BY 2.0 license.

Figure 5.8 Rafting Adventure in Squamish, BC by Raj Taneja is used under a CC-BY-NC 2.0 license.

Figure 5.9 Absolutely Nothing is Allowed Here by Vicki & Chuck Rogers is used under a CC-BY-NC-SA 2.0 license.

Donna Owens

Overview

When a traveller enters Canada, there’s a good chance he or she will be asked at the border, What is the nature of your trip? Whether the answer is for business, leisure, or visiting friends and relatives, there’s a possibility that a traveller will participate in some of the following activities (as listed in the Statistics Canada International Travel Survey):

• Attend a festival or fair, or other cultural events
• Visit a zoo, aquarium, botanical garden, historic site, national park, museum, or art gallery
• Watch sports or participate in gaming

These activities fall under the realm of entertainment as it relates to tourism. Documenting every activity that could be on a tourist’s to-do list would be nearly impossible, for what one traveller would find entertaining, another may not. This chapter focuses on the major components of arts, entertainment, and attractions, including motion pictures, video exhibitions, and wineries, all activities listed under the North American Industry Classification System we learned about in Chapter 1.

Figure 6.1 A labyrinth of light at the 2008 Winter Solstice Lantern Festival in Vancouver

Festivals and Events

Festival and Major Events Canada (FAME) released a report in 2009 detailing the economic impacts of the 15 largest festivals and events across Canada, which amounted to $750 million in tourist spending and another $300 million in local operational spending (Enigma Research Consultants, 2009). Let’s take a closer look at this segment of the sector.

Festivals

The International Dictionary of Event Management defines a festival as a “public celebration that conveys, through a kaleidoscope of activities, certain meanings to participants and spectators” (Goldblatt, 2001, p. 78). Other definitions, including those used by the Ontario Trillium Foundation and the European Union, highlight accessibility to the general public and short duration as key elements that define a festival.

Search “festivals in Canada” online and over 54 million results will appear. To define these activities in the context of tourism, we need to consider operations and marketing: in other words, we must answer the questions, Who are these activities aimed at? and Why are they being celebrated?

The broad nature of festivals has lead to the development of classification types. For instance, funding for the federal government’s Building Communities through Arts and Heritage Program is available under three categories, depending on the type of festival:

1. Local festivals funding is provided to local groups for recurring festivals that present the work of local artists, artisans, or historical performers.
2. Community anniversaries funding is provided to local groups for non-recurring local events and capital projects that commemorate an anniversary of 100 years (or greater, in increments of 25 years).
3. Legacy funding is provided to community capital projects that commemorate a 100th anniversary (or greater, in increments of 25 years) of a significant local historical event or local historical personality.

In 2012-13, funds awarded to BC festivals ranged from $2,000 for the Nelson History Theatre Society’s Nelson Arts and Heritage Festival to $119,400 for the Vancouver International Film Festival (Government of Canada, 2014a).

Festivals and events in BC celebrate theatre dance, film, crafts, visual arts, and more. Just a few examples are Bard on the Beach, Vancouver International Improv Festival, Cornucopia, and the Cowichan Wine and Culinary Festival.

Figure 6.2 Guests at Cornucopia in Whistler

Events

An event is a happening at a given place and time, usually of some importance, celebrating or commemorating a special occasion. To help broaden this simple definition, categories have been developed based on the scale of events. These categories, presented in Table 6.1 overlap and are not hard and fast, but help cover a range of events.

Events can be extremely complex projects, which is why, over time, the role of event planners has taken on greater importance. The development of education, training programs, and professional designations such as CMPs (Certified Meeting Planners), CSEP (Certified Special Events Professional), and CMM (Certificate in Meeting Management) has led to increased credibility in this business and demonstrates the importance of the sector to the economy. Furthermore, there are a variety of event management certifications and diplomas offered in BC that enable future event and festival planners to gain specific skills and knowledge within the sector.

Various tasks involved in event planning include:

• Conceptualizing/theming
• Logistics and planning
• Human resource management
• Security
• Marketing and public relations
• Budgeting and financial management
• Sponsorship procurement
• Management and evaluation

But events aren’t just for leisure visitors. In fact, the tourism industry has a long history of creating, hosting, and promoting events that draw business travellers. The next section explores meetings, conventions, and incentive travel, also known as MCIT.

Meetings, Conventions, and Incentive Travel (MCIT)

According to the Business Events Industry Coalition of Canada (BEICC), business events are big business. In 2012, they:

• Delivered at least $27 billion to Canada’s economy (1.5% of Canada’s GDP)
• Contributed $8.5 billion in taxes and service fees to all levels of government
• Created over 341,700 employment opportunities (average salary of over $50,000 per year)

The business events industry in Canada is as big as agriculture and forestry, and it provides nearly twice the number of jobs that telecommunications and utilities do (BEICC, 2014).

There are several types of business events. Conventions generally have very large attendance, and are held annually in different locations. They also often require a bidding process. Conferences have specific themes, and are held for smaller, focused groups. Trade shows/trade fairs can be stand-alone events, or adjoin a convention or conference. Finally, seminars, workshops, and retreats are examples of smaller-scale MCIT events.

As meeting planners became more creative, meeting and convention delegates became more demanding about meeting sites. No longer are hotel meeting rooms and convention centres the only type of location used; non-traditional venues have adapted and become competitive in offering services for meeting planners. These include architectural spaces such as airplane hangars, warehouses, or rooftops and experiential venues such as aquariums, museums, and galleries (Colston, 2014).

Incentive Travel

For many people new to the travel industry, incentive travel is an unfamiliar concept. The Society of Incentive Travel Excellence (SITE) has explained that incentive travel involves “motivational and performance improvement strategies of which travel is a key component” (2014). Unlike other types of business events, incentive travel is focused on fun, food, and other activities rather than education and work.

Sectors that use incentive travel include insurance, finance, technology, pharmaceutical, and auto manufacturers and dealers. The incentive travel market is extremely competitive and demanding. When rewarding high-performance staff, Fortune 500-type companies are looking for the most luxurious and unique travel experiences and products available.

Figure 6.3 Pan Pacific Hotel and the Vancouver Convention Centre

Convention Centres

No discussion of business events would be complete without noting the importance of convention centres — very large venues that can host thousands of delegates.

Key success factors for convention venues include:

• Air access to the destination
• Quality hotels close to or adjacent to the venue
• Quality venue space
• Relative cost of the destination and venue
• Attractiveness of the destination

BC is home to a number of convention centres, including those in Kelowna, Nanaimo, Penticton, Prince George, and Victoria. The signature venue for the province is the Vancouver Convention Centre, which underwent a significant expansion prior to the 2010 Winter Olympics.

With an understanding of the scope of festivals and events, as well as examples of the venues that host them, let’s turn our attention to the diverse number of attractions that contribute to the tourism entertainment sector.

Attractions

Without attractions there would be no need for other tourism services. Indeed tourism as such would not exist if it were not for attractions. (Swarbrooke, 2002, p. 3)

When the Canadian Tourism Commission planned a survey of Canada’s tourist attractions in 1995, there was no official definition of tourist attractions. After consultation, federal, provincial, territorial, and industry stakeholders agreed on a working definition: “places whose main purpose is to allow public access for entertainment, interest, or education”  (Canadian Tourism Commission, 1998, p. 3).

Five major categories were established:

1. Heritage attractions: focus on preserving and exhibiting objects, sites, and natural wonders of historical, cultural, and educational value (e.g., museums, art galleries, historic sites, botanical gardens, zoos, nature parks, conservation areas)
2. Amusement/entertainment attractions: maintain and provide access to amusement or entertainment facilities (e.g., arcades; amusement, theme, and water parks)
3. Recreational attractions: maintain and provide access to outdoor or indoor facilities where people can participate in sports and recreational activities (e.g., golf courses, skiing facilities, marinas, bowling centres)
4. Commercial attractions: retail operations dealing in gifts, handcrafted goods, and souvenirs that actively market to tourists (e.g., craft stores listed in a tourist guide)
5. Industrial attractions: deal mainly in agriculture, forestry, and manufacturing products that actively market to tourists (e.g., wineries, fish hatcheries, factories)

Although the data is two decades old (the survey was never repeated at a national level), the overall findings help to outline the importance of tourist attractions to Canada’s tourism industry. The 1995 survey found:

• Just over half (51%) of attractions charged admission (49% did not).
• Surveyed attractions saw 200 million visitors with 50% of volume  in the summer.
• The majority (80%) reported visits lasted under three hours.

Major revenue sources for attractions include admission, merchandising, food and beverage sales, parking, grants, and donations. Major expenses include staff, land, insurance, permits and fees, marketing, equipment, and buildings.

The rest of this chapter explores various types of attractions in more detail.

Cultural/Heritage Tourism

The phrase cultural/heritage tourism can be interpreted in many ways. The Canadian Tourism Commission has defined it as tourism “occurring when participation in a cultural or heritage activity is a significant factor for traveling. Cultural tourism includes performing arts (theatre, dance, and music), visual arts and crafts, festivals, museums and cultural centres, and historic sites and interpretive centres” (LinkBC, 2012).

Figure 6.4 A “pioneer” at Barkerville historic site near Quesnel, BC

A 2011 Government of Canada survey of heritage institutions found (2014b):

• Revenues for all heritage institutions in Canada exceeded $1.73 billion (65% of which was unearned revenues — grants, government funding, and donations)
• Sales in goods and services (gift shops, cafeterias, and other outlets) accounted for 37% of earned revenue, followed by admissions at 20%
• Three provinces — Ontario (44%), Quebec (25%), and Alberta (9%) — had the largest share of heritage institutions
• Approximately 48% of heritage institutions charged admission, and the average adult entry fee was $7

Volunteers at heritage institutions outnumbered paid staff by approximately three to one. Of the 128,000 workers in heritage institutions, approximately 96,000 were volunteers. The amount of time they donated (over six million hours) contributed to huge savings for institutions. These statistics indicate that volunteerism is a critical success factor for Canadian heritage institutions.

Overall attendance at heritage institutions totalled almost 45 million visits in 2011, with museums (21.5 million visits) being the most popular of all heritage institution types surveyed. There were also over 137 million online visits to all heritage institutions (captured for the first time in the history of the survey).

Performing Arts

Performing arts generally include theatre companies and dinner theatres, dance companies, musical groups, and artists and other performing arts companies. These activities and entities contribute to a destination’s tourist product offering and are usually considered an aspect of cultural tourism.

Figure 6.5. Yoshiko Kamikusa of BC’s Goh Ballet

In 2011, the majority of small and medium-sized performing arts companies in Canada were profitable (86.3%). The average annual net profit was $28,300 (Government of Canada, 2014c).

British Columbia was home to 166 performing arts groups in 2012, and 103 of these were considered micro groups, indicating that this sector of the industry is dominated by small organizations with one to four employees.

Art Museums and Galleries

Art museums and galleries may be public, private, or commercial. According to the Canadian Art Museum Directors Organization (CAMDO, 2014), both art museums and public galleries present works of art to the public, exhibiting a diverse range of art from more well-known artists to emerging artists. Exhibitions are assembled and organized by a curator who oversees the installation of the works in the gallery space. However, art museums and public galleries have different mandates, and therefore offer different visitor experiences.

Art museums collect historical and modern works of art for educational purposes and to preserve them for future generations. Public galleries, on the other hand, do not generally collect or conserve works of art. Rather, they focus on exhibitions of contemporary works as well as on programs of lectures, publications, and other events.

A few examples of the art museums and public galleries in BC are the Vancouver Art Gallery, the Art Gallery of Greater Victoria, Two Rivers Gallery in Prince George, and the Kelowna Art Gallery.

Many of the smaller galleries have formed partnerships within geographic regions to share marketing resources and increase visitor appeal. One example includes the self-guided Art Route Tour in Haida Gwaii.

Museums

The term museum covers a wide range of institutions from wax museums to sports halls of fame. No matter what type of museum it is, many are now asking if museums are still relevant in today’s high-tech world. In response, museums are using new technology to expand the visitor experience. One example is the Royal BC Museum, which hosts an online Learning Portal, lists recent related tweets on its home page, and is home to an IMAX theatre playing IMAX movies that relate to the museum exhibits.

Data from the 2011 Survey of Heritage Institutions in Canada found that attendance at heritage institutions totalled almost 45 million visits, with museums (21.5 million visits) being the most popular.

British Columbia is home to over 200 museums, including Vancouver’s Museum of Anthropology and Victoria’s Royal BC Museum, both with impressive displays of Aboriginal art and culture. Smaller community museums include the Fraser River Discovery Centre in New Westminster, and the Zeballos Heritage Museum.

Botanical Gardens

A botanical garden is a garden that displays native and non-native plants and trees. It conducts educational, research, and public information programs that enhance public understanding and appreciation of plants, trees, and gardening (Canadensis, 2014).

Canadian botanical gardens host an estimated 4.5 million visitors per year and are important science and educational facilities, providing leadership in plant conservation and public education (Botanic Gardens Convervation International, 2014). British Columbia is home to notable botanical gardens such as Vancouver’s Stanley Park, the Butchart Gardens near Victoria, UBC’s Botanical Garden, and VanDusen Botanical Garden, to name just a few.

Zoos

Zoos all over the world are facing many challenges. A recent article in The Atlantic — whose title poses the question, “Is the Future of Zoos No Zoos at All?” — discusses how the increased use of technology by biologists, such as habitat cameras (nest cams, bear den cams), GPS trackers, and live web feeds of natural behaviours, has transformed the zoo experience into “reality – zoo tv” (Wald, 2014). There is also growing opposition to zoos from organizations such as PETA, who claim that zoo enclosures deprive animals of the opportunity to meet their basic needs and develop relationships (PETA, 2014).

Canada’s Accredited Zoos and Aquariums (CAZA) work in support of ethical and responsible facilities. Examples of CAZA members in BC include the BC Wildlife Park in Kamloops, the Greater Vancouver Zoo, Kicking Horse Grizzly Bear Refuge near Golden, Shaw Ocean Discovery Centre in Sidney, and the Vancouver Aquarium (Canada’s Accredited Zoos and Aquariums, 2014).

Canadian zoos with high attendance levels include the Toronto Zoo with over 1.3 million guests in 2010 (Toronto Zoo, 2010), and the Vancouver Aquarium with over 1 million visitors in 2013 (Vancouver Aquarium 2013). In 2013, the Calgary Zoo employed almost 300 full- and part-time staff and an additional 99 seasonal employees (Calgary Zoo, 2013).

Amusement and Theme Parks

Figure 6.6 Wave spinners at Vancouver’s Playland amusement park

While cultural and heritage attractions strive to present information based on historic and evolving cultures and facts, amusement parks are attractions that often work to create alternate, fanciful realities. Theme parks have a long history dating back to the 1500s in Europe, and have evolved ever since. Today, it is hard not to try to compare any amusement park destination to Disneyland and Disney World. Opened in 1955 in sunny California, Disneyland set the standard for theme parks. The Pacific National Exhibition (PNE) in Vancouver is considered one of BC’s most recognizable amusement parks and recently celebrated its 100-year anniversary (PNE, 2015).

Canada’s ability to compete with US theme parks is hampered by our climate. With a much shorter summer season, the ability to attract investment in order to sustain large-scale entertainment complexes is limited, as is the market for these attractions. It’s no wonder that in 2011 profitable Canadian amusement parks only saw an average net profit of $73,200, with 34% of firms failing to turn a profit that year. BC has only 22 amusement parks, and more than half of these are considered small, with under 100 employees (Government of Canada, 2014d).

Motion Picture and Video Exhibitions

The film industry in Canada, and particularly in BC, has gained international recognition in part through events such as the Toronto International Film Festival, Montreal World Film Festival, and Vancouver International Film Festival. According to the Motion Picture Association — Canada (2013) these festivals attracted an estimated audience of 1.9 million in 2011, as well as over 18,000 industry delegates. Festival operations, visitor spending, and delegate spending combined totalled $163 million that year and generated 2,000 jobs (full-time equivalents).

There are no statistics available on film-induced tourism in Canada, but several notable feature films and television series have been shot here and have drawn loyal fans to production locations. In BC, some of these titles include Reindeer Games and Double Jeopardy (Prince George), Roxanne (Nelson), The Pledge (Fraser Canyon), Battlestar Galactica (Kamloops), The Twilight Saga, Smallville, and Supernatural (Greater Vancouver).

Spectator Sports and Sport Tourism

Spectator sports and the growing field of sport tourism also contribute significantly to the economy and have become a major part of the tourism industry. According to the Canadian Sport Tourism Alliance (2013), sport tourism is any activity in which people are attracted to a particular location to attend a sport-related event as either a:

• Participant
• Spectator
• Visitor to sport attractions or delegate of sports sector meetings

In 2012, the sport tourism industry in Canada surpassed $5 billion in spending. The domestic market is the largest source of sport tourists, accounting for 84% of all spending, followed by overseas markets (10.8%) and US visitors (5.3% of sport tourism revenues) (Canadian Sport Tourism Alliance, 2014).

In British Columbia, sport tourism is supported through the Ministry of Community, Sport and Cultural Development, which invests in event hosting and the ViaSport program (formerly known as Hosting BC). Building on the success of the 2010 Olympic and Paralympic Winter Games, the program has a goal to maintain BC’s profile and reputation as an exceptional major event host. One success story is Kamloops, dubbed the Tournament Capital of Canada, which has made sport tourism a central component of its economy and welcomes over one million visitors to its tournament centre facility each year. And since 1977, the BC Winter and Summer Games have moved around the province, drawing attendees and creating volunteer opportunities for up to 3,200 community members.

Gaming

According to the Canadian Gaming Association, gaming is one of the largest entertainment industries in Canada. It has larger revenues than those generated by magazines and book sales, drinking establishments, spectator sports, movie theatres, and performing arts combined (Canadian Gaming Association, 2011).

Figure 6.7 Vancouver’s Edgewater Casino

In 2011, the association released an economic impact study stating that legalized gaming had nearly tripled in size since 1995, from $6.4 billion to about $15.1 billion.

According to the BC Lottery Corporation, in 2013, the BC gaming industry was made up of:

• 17 casino facilities
• two main horse racetracks
• approximately 4,050 lottery outlets (retailers)
• 28 bingo halls including 18 bingo halls with slot machines (community gaming centres, or CGCs)

Gaming at these facilities and online generated $1.175 billion in net tax revenue to the province of BC, which was reinvested into the heath care system and distributed to communities through a series of grants (BC Lottery Corporation, 2013).

The provincial industry has grown annually since 2006, except in 2010 (slight decrease of about $15 million). The majority of growth was accounted for by the redevelopment/expansion of existing casinos and the introduction of a number of CGCs (Canadian Gaming Association, 2011).

Agritourism, Culinary Tourism, and Wine Tourism

Let’s now have a closer look at the world of farms, food, and wine in the entertainment and tourism industries.

Agritourism

The Canadian Farm Business Management Council defines agritourism as “travel that combines rural settings with products of agricultural operations within a tourism experience that is paid for by visitors” (SOTC, 2011). In other words, rural and natural environments are mixed with agricultural and tourism products and services.

Agritourism products and services can be categorized into three themes:

1. Fixed attractions such as historic farms, living farms, museums, food processing facilities, and natural areas
2. Events based on an agricultural theme such as conferences, rodeos, agricultural fairs, and food festivals
3. Services such as accommodations (B&Bs), tours, retailing (farm produce and products), and activities (fishing, hiking, etc.) that incorporate agricultural products and/or experiences

At a time when farmers are facing increasing costs and the local food movement is growing in popularity, agritourism presents a great opportunity to use farm resources to create experiences for visitors, whether they be for entertainment, education, or as venues for business/meeting events. In BC, examples of agritourism businesses are Salt Spring Island Cheese, Okanagan Lavender Herb Farm near Kelowna, and Amusé Bistro in the Cowichan Valley, where a local monk and mushroom expert forages for local fungi (HelloBC, 2014).

The three primary agricultural regions in BC are:

1. The Fraser Valley (outside of Vancouver)
2. The Cowichan Valley (on Vancouver Island)
3. The Okanagan Valley (in the southern central part of BC)

A number of self-guided circle tours and other experiences are available in these and other areas, including annual festivals and events, such as the Pemberton Slow Food Cycle Sunday, profiled in the Spotlight On below.

Culinary Tourism

Culinary tourism refers to “any tourism experience in which one learns about, appreciates, and/or consumes food and drink that reflects the local, regional, or national cuisine, heritage, culture, tradition, or culinary techniques” (Ontario Culinary Tourism Alliance, 2013). The United Nations World Tourism Organization has noted that food tourism is a dynamic and growing segment, and that over one-third of tourism expenditures relate to food (UNWTO, 2012).

Culinary tourism in Canada began to gain traction as a niche in 2002 when the Canadian Tourism Commission highlighted it within the cultural tourism market, and according to a Ryerson University study, the average culinary tourist spends twice the amount of a generic tourist (Grishkewich, 2012).

While an emerging and potentially lucrative market, there is much more to learn about culinary tourists to BC, and Canada. To date more research has profiled an additional sub-segment of culinary tourism, wine tourism, which we’ll explore next.

Wine Tourism

The North American Industrial Classification System (NAICS) defines wine tourism as the “tasting, consumption, or purchase of wine, often at or near the source, such as wineries.” It also includes an educational aspect and festivals focusing on the production of wine (Agriculture and Agri-food Canada, 2014).

Figure 6.8 Saturna Vineyards on Saturna Island, BC

There are more than 200 wineries in BC, ranging from small family-run vineyards to large estate operations. In 2011, BC’s wine industry generated $1.43 billion in business revenue, and either directly or indirectly supported over 10,000 full-time jobs (Frank, Rimerman + Co, 2013).

Specific to tourism, wineries across BC attracted over 800,000 visitors in 2011, generating $1.63 million, more than 10% of total provincial wine revenues. Wine tourism accounted for over 2,000 wine-related jobs that year, approximately 20% of total wine industry jobs (Frank, Rimmerman + Co, 2013).

According to the 2006 Travel Activities and Motivations Survey (TAMS), 3.3 million Canadians and 30 million Americans participated in wine tourism in 2004/2005, with BC receiving 45% of the Canadian visitors, and just over 9% of the American guests. These visitors earned 40% higher incomes than generic visitors, were well-educated, evenly split between men and women, and represented a slightly older demographic (Destination BC, 2009).

While more recent data is not currently available on this still-developing sector, industry experts agree that agritourism, culinary tourism, and wine tourism will continue to attract lucrative visitors and play a growing role in BC’s tourism economy.

Trends and Issues

So far in this chapter, we’ve looked at entertainment experiences from wine to gambling, from farm-fresh foods to museums and galleries, and at many things in between. But the entertainment sector doesn’t exist in a perfect world. Now let’s examine some of the trends and issues in the sector today. Festivals, events, and other entertainment experiences can have significant positive, and negative, impacts on communities and guests.

Impacts of Entertainment

Each type of festival, event, or attraction will have an impact on the host community and guests. Table 6.2 lists some of the positive impacts that can be built upon and celebrated. It also lists some of the potential negative impacts event coordinators should strive to limit.

Technology

The role of technology is shifting the guest experience from the physical to the virtual. Online gambling, virtual exhibits, and live streaming animal habitat cams are just a few of the new ways that visitors can be entertained, often without having to visit the destination. As this type of experience continues to thrive, the sector must constantly adapt to capture revenues and attention.

Conclusion

Across Canada and within BC the range of activities to entertain and delight travellers runs from authentic explorations of cultural phenomena to pure amusement. Those working in the entertainment tourism sector know that providing a friendly, welcoming experience is a key component in sustaining any tourism destination. Whether through festivals, events, attractions, or new virtual components, the tourism industry relies on entertainment to complete packages and ensure guests, whether business or leisure travellers, increase their spending and enjoyment.

Thus far we’ve explored the key sectors of transportation, accommodation, food and beverage, and recreation and entertainment. The final sector, travel services, brings these all together, and is explored in more detail in Chapter 7.

References

Agriculture and Agri-Food Canada. (2014). The Canadian wine industry. Retrieved from www.agr.gc.ca/eng/industry-markets-and-trade/statistics-and-market-information/by-product-sector/processed-food-and-beverages/the-canadian-wine-industry/?id=1172244915663

Botanic Gardens Conservation International. (2014). Welcome to BGCI Canada. Retrieved from www.bgci.org/canada

British Columbia Lottery Corporation. (2014). BCLC 2013-14 annual report. Retrieved from http://issuu.com/bclc-onlinelibrary/docs/bclc_2013-14_annual_report?e=1760950/8584471

Business Events Industry Coalition of Canada. (2014). Business events are big business. Retrieved from http://beicc.com/ceis/

Calgary Zoo. (2013). Calgary Zoo 2013 annual report. [PDF] Retrieved from www.calgaryzoo.com/sites/default/files/pdf/2013-CGYZoo-AnnualReport_WEB.pdf

CAMDO. (2014). Canadian Art Museum Directors Organization blog. Retrieved from www.camdo.ca/blog/?page_id=458

Canada’s Accredited Zoos and Aquariums. (2014). About us. Retrieved from www.caza.ca

Canadensis.(2014). FAQ. Retrieved from www.canadensisgarden.ca/f-a-q/

Canadian Gaming Association. (2011, October 19). Canadian gaming industry matures into one of the largest entertainment industries in the country. Retrieved from www.canadiangaming.ca/news-a-articles/95-canadian-gaming-industry-matures-into-one-of-the-largest-entertainment-industries-in-the-country-the-cgas-economic-impact-study-finds.html

Canadian Sport Tourism Alliance. (2013). Value of sport tourism. Retrieved from www.canadiansporttourism.com/value-sport-tourism.html

Canadian Sport Tourism Alliance. (2014). Sport tourism: Full steam ahead! Retrieved from http://canadiansporttourism.com/news/sport-tourism-full-steam-ahead.html

Canadian Tourism Commission. (1998). Canada’s tourist attractions: A statistical snapshot 1995-96.

Colston, K. (2014, April 24). Non-traditional event venues – Endless entertainment. Retrieved from http://helloendless.com/non-traditional-event-venues/

Destination BC. (2009, October). Wine tourism insight. [PDF] Retrieved from www.destinationbc.ca/getattachment/Research/Research-by-Activity/Land-based/Wine_Sector_Profile.pdf.aspx

Enigma Research Consultants. (2009). The economic impact of Canada’s largest events and festivals [PDF]. Retrieved from http://fame-feem.ca/wp-content/themes/sands/downloads/2009%20Economic%20Impact%20of%20Canada’s%20Largest%20Festivals%20and%20Events.pdf

Frank, Rimerman + Co. LLP. (2013). The economic impact of the wine and grape industry in Canada 2011. [PDF] Retrieved from http://engage.gov.bc.ca/liquorpolicyreview/files/2013/11/Canadian-Vintners-Association.pdf

Getz, D. (1997). Event management and event tourism. New York, NY: Cognizant Communications, p.6.

Goldblatt, J. (2001). The international dictionary of event management (2nd ed.). New York, NY: John Wiley & Sons, p. 78.

Government of Canada. (2014a). Funds awarded – Major events. Retrieved from www.pch.gc.ca/eng/1389635366164

Government of Canada. (2014b). Survey of heritage institutions: 2011. [PDF] Canadian Heritage. Retrieved from
www.pch.gc.ca/DAMAssetPub/DAM-verEval-audEval/STAGING/texte-text/2011_Heritage_Institutions_1414680089816_eng.pdf?WT.contentAuthority=6.0

Government of Canada. (2014c). Performing arts, operating statistics. Retrieved from www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/arts73a-eng.htm

Government of Canada. (2014d). Amusement and recreation, summary statistics. Retrieved from www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/arts60a-eng.htm

Grishkewich, Cheryl. (2012, January 12). Culinary tourists: Recipe for economic development success. Retrieved from: https://ontarioculinary.com/cheryls-tasty-tid-bits/

HelloBC. (2014, October 20). Down on the farm: Agritourism in BC. Retrieved from http://travelmedia.hellobc.com/stories/down-on-the-farm–agritourism-in-bc.aspx

LinkBC. (2012). Cultural & heritage tourism: A handbook for community champions. [PDF] Retrieved from www.linkbc.ca/siteFiles/85/files/CHT_WEB.pdf

Motion Picture Association – Canada. (2013). Issues and positions. [PDF] Retrieved from www.mpa-canada.org/wp-content/uploads/2014/03/MPA-Canada_Nordicity-Report_July-2013_English.pdf

Ontario Culinary Tourism Alliance. (2013). Culinary tourism: A definition. Retrieved from: https://ontarioculinary.com/resources/culinary-tourism-101/

Pacific National Exhibition. (n.d.). About us. Retrieved from http://www.pne.ca/aboutus/index.html

PETA – People for the Ethical Treatment of Animals. (2014). Our views. Retrieved from www.peta.org/about-peta/why-peta/zoos/#ixzz3LiYfeI6C)

Society of Incentive Travel Excellence. (2014). History. Retrieved from www.siteglobal.com/p/cm/ld/fid=109

SOTC – Southwest Ontario Tourism Corporation. (2011). What is agritourism? Retrieved from www.osw-agritourismtoolkit.com/Agribusiness/What-is-Agritourism

Swarbrooke, J. (2002). The development & management of visitor attractions, 2nd ed. Oxford, UK: Butterworth Heinemann.

Toronto Zoo. (2010). Toronto Zoo 2010 annual report [PDF]. Retrieved from www.torontozoo.com/pdfs/Toronto%20Zoo%202010%20Annual%20Report.pdf

United Nations World Tourism Organization. (2012). Global report on food tourism. Retrieved from www.silkroad.unwto.org/publication/unwto-am-report-vol-4-global-report-food-tourism

Vancouver Aquarium. (2013). Vancouver Aquarium annual report 2013 [PDF]. Retrieved from: www.vanaqua.org/annualreport2013/assets/dist/pdfs/annualreport2013.pdf

Wald, C. (2014, November). Is the future of zoos no zoos at all? The Atlantic. Retrieved from  www.theatlantic.com/technology/archive/2014/11/is-the-future-of-zoos-no-zoos-at-all/383070/

Attributions

Figure 6.1 Labyrinth of Light by Tavis Ford is used under a CC-BY 2.0 license.

Figure 6.2  Cornucopia :: Whistler’s Celebration of Wine & Food by Shinsuke Ikegame is used under a CC-BY 2.0 license.

Figure 6.3 Pan Pacific Vancouver and the Vancouver Convention Center by Pan Pacific is used under a CC-BY 2.0 license.

Figure 6.4 Pioneer by J Scott is used under a CC-BY-SA 2.0 license.

Figure 6.5 yoshiko by Raul Pacheco-Vega is used under a CC-BY-NC-ND 2.0 license.

Figure 6.6 Swingers and Spinners | The PNE Fairgrounds by Rikki/Julius Reque is used under a CC-BY-NC-SA 2.0 license.

Figure 6.7 Edgewater Casino by colink is used under a CC-BY-SA 2.0 license.

Figure 6.8 Saturna Vineyards by David Stanley is used under a CC-BY 2.0 license.

Heather Knowles and Morgan Westcott

Overview

Figure 7.1 The homepage of HelloBC.com, a site where consumers can research and plan their trip to British Columbia

The travel services sector is made up of a complex web of relationships between a variety of suppliers, tourism products, destination marketing organizations, tour operators, and travel agents, among many others. Under the North American Industry Classification System (NAICS), travel services comprises businesses and functions that assist with planning and reserving components of the visitor experience (Government of Canada, 2014).

Before we move on, let’s explore the term travel services a little more. As detailed in Chapter 1, Canada, the United States, and Mexico all use NAICS guidelines, which define the tourism industry as consisting of transportation, accommodation, food and beverage, recreation and entertainment, and travel services.

For many years, however, the tourism industry was classified into eight sectors: accommodations, adventure and recreation, attractions, events and conferences, food and beverage, tourism services, transportation, and travel trade (Yukon Department of Tourism and Culture, 2013). As you can see, most of these — from accommodations to food and beverage — remain virtually the same under NAICS and have been covered thus far in this textbook.

Tourism services support industry development and the delivery of guest experiences, and some of these are missing from the NAICS classification. To ensure you have a complete picture of the tourism industry in BC, this chapter will cover both the NAICS travel services activities and some additional tourism services.

First, we’ll review the components of travel services as identified under NAICS, exploring the function of each area and ways they interact:

1. Travel agencies
2. Online travel agencies (OTAs)
3. Tour operators
4. Destination marketing organizations (DMOs)
5. Other organizations

Following these definitions and descriptions, we’ll take a look at some other support functions that fall under tourism services. These include sector organizations, tourism and hospitality human resources organizations, training providers, educational institutions, government branches and ministries, economic development and city planning offices, and consultants.

Finally, we’ll look at issues and trends in travel services, both at home, and abroad.

Components of Travel Services

While the application of travel services functions are structured somewhat differently around the world, there are a few core types of travel services in every destination. Essentially, travel services are those processes used by guests to book components of their trip. Let’s explore these services in more detail.

Travel Agencies

Figure 7.2 A travel agency in the United Kingdom

A travel agency is a business that operates as the intermediary between the travel industry (supplier) and the traveller (purchaser). Part of the role of the travel agency is to market prepackaged travel tours and holidays to potential travellers. The agency can further function as a broker between the traveller and hotels, car rentals, and tour companies (Goeldner & Ritchie, 2003). Travel agencies can be small and privately owned or part of a larger entity.

A travel agent is the direct point of contact for a traveller who is researching and intending to purchase packages and experiences through an agency. Travel agents can specialize in certain types of travel including specific destinations; outdoor adventures; and backpacking, rail, cruise, cycling, or culinary tours, to name a few. These specializations can help travellers when they require advice about their trips. Some travel agents operate at a fixed address and others offer services both online and at a bricks-and-mortar location. Travellers are then able to have face-to-face conversations with their agents and also reach them by phone or by email. Travel agents usually have a specialized diploma or certificate in travel agent/travel services (go2HR, 2014).

Today, travellers have the option of researching and booking everything they need online without the help of a travel agent. As technology and the internet are increasingly being used to market destinations, people can now choose to book tours with a particular agency or agent, or they can be fully independent travellers (FITs), creating their own itineraries.

Online Travel Agents (OTAs)

Increasing numbers of FITs are turning to online travel agents (OTAs), companies that aggregate accommodations and transportation options and allow users to choose one or many components of their trip based on price or other incentives. Examples of OTAs include Booking.com, Expedia.ca, Hotwire.com, and Kayak.com. OTAs are gaining popularity with the travelling public; in 2012, they reported online sales of almost $100 billion (Carey, Kang, & Zea, 2012) and almost triple that figure, upward of $278 billion, in 2013 (The Economist, 2014).

In early 2015 Expedia purchased Travelocity for $280 million, merging two of the world’s largest travel websites. Expedia became the owner of Hotels.com, Hotwire, Egencia, and Travelocity brands, facing its major competition from Priceline (Alba, 2015).

Although OTAs can provide lower-cost travel options to travellers and the freedom to plan and reserve when they choose, they have posed challenges for the tourism industry and travel services infrastructure. As evidenced by the merger of Expedia and Travelocity, the majority of popular OTA sites are owned by just a few companies, causing some concern over lack of competition between brands. Additionally, many OTAs charge accommodation providers and operators a commission to be listed in their inventory system. Commission-based services, as applied by Kayak, Expedia, Hotwire, Hotels.com, and others, can have an impact on smaller operators who cannot afford to pay commissions for multiple online inventories (Carey, Kang & Zea, 2012). Being excluded from listings can decrease the marketing reach of the product to potential travellers, which is a challenge when many service providers in the tourism industry are small or medium-sized businesses with budgets to match.

Finally, governments are stepping in as they see OTAs as a barrier to collecting full tax revenues on accommodations and transportations sold in their jurisdictions. OTAs frequently charge taxes on the retail price of the component; however, they purchase these products at a discount, remitting only the portion collected on the lesser amount to the government. In other words, the OTA pockets the difference between taxes collected and taxes remitted (Associated Press, 2014).

Some believe this practice shortchanges the destination that is ultimately responsible for delivering the tourism experience. These communities rely on tax revenue to pay for infrastructure related to the visitor experience. Recent lawsuits, including one by the state of Montana against a group of OTAs, have highlighted this challenge. To date, the courts have sided with OTAs, sending the message that these companies are not responsible for collecting tax on behalf of government (Associated Press, 2014).

While the industry and communities struggle to keep up with the changing dynamics of travel sales, travellers are adapting to this new world order. One of these adaptations is the ever-increasing use of mobile devices for travel booking. The Expedia Future of Travel Report found that 49% of travellers from the millennial generation (which includes those born between 1980 and 1999) use mobile devices to book travel (Expedia Inc., 2014), and these numbers are expected to continue to increase. Travel agencies are reacting by developing personalized features for digital travellers and mobile user platforms (ETC Digital, 2014). With the number of smartphones users expected to reach 1.75 billion in 2014 (CWT Travel Management Institute, 2014) these agencies must adapt as demand dictates.

Figure 7.3 This is what a computer looked like in 1996. Less than 20 years later you can access the world from your mobile phone.

A key feature of travel agencies’ mobile services (and to a growing extent transportation carriers) includes the ability to have up-to-date itinerary changes and information sent directly to their phone (Amadeus, 2014). By using mobile platforms that can develop customized, up-to-date travel itineraries for clients, agencies and operators are able to provide a personal touch, ideally increasing customer satisfaction rates.

Despite the growth and demand for OTAs, travel agencies are still in demand by leisure travellers (Hotel Marketing, 2013). The same is true for business travellers, especially in markets such as China and Latin America. Business clients in these emerging markets place a premium on “high-touch” services, such as paper tickets delivered by hand, and in-person reservations services (BTN Group, 2014).

Tour Operators

Figure 7.4 A group tours the Columbia ice field in Alberta

A tour operator packages all or most of the components of an offered trip and then sells them to the traveller. These packages can also be sold through retail outlets or travel agencies (CATO, 2014; Goeldner & Ritchie, 2003). Tour operators work closely with hotels, transportation providers, and attractions in order to purchase large volumes of each component and package these at a better rate than the traveller could if purchasing individually. Tour operators generally sell to the leisure market.

Inbound, Outbound, and Receptive Tour Operators

Tour operators may be inbound, outbound, or receptive:

• Inbound tour operators bring travellers into a country as a group or through individual tour packages (e.g., a package from China to visit Canada).
• Outbound tour operators work within a country to take travellers to other countries (e.g., a package from Canada to the United Kingdom).
• Receptive tour operators (RTOs) are not travel agents, and they do not operate the tours. They represent the various products of tourism suppliers to tour operators in other markets in a business-to-business (B2B) relationship. Receptive tour operators are key to selling packages to overseas markets (Destination BC, 2014) and creating awareness around possible product.

Destination Marketing Organizations

Destination marketing organizations (DMOs) include national tourism boards, state/provincial tourism offices, and community convention and visitor bureaus around the world. DMOs promote “the long-term development and marketing of a destination, focusing on convention sales, tourism marketing and service” (DMAI, 2014).

With the proliferation of other planning and booking channels, including OTAs, today’s DMOs are shifting away from travel services functions and placing a higher priority on destination management components.

Working Together

One way tour operators, DMOs, and travel agents work together is by participating in familiarization tours (FAMs for short). These are usually hosted by the local DMO and include visits to different tour operators within a region. FAM attendees can be media, travel agents, RTO representatives, and tour operator representatives. FAMs are frequently low to no cost for the guests as the purpose is to orient them to the tour product or experience so they can promote or sell it to potential guests.

Other Organizations

The majority of examples in this chapter so far have pertained to leisure travellers. There are, however, specialty organizations that deal specifically with business trips.

Business Travel Planning and Reservations

Unlike leisure trips, which are generally planned and booked by end consumers using their choice of tools, business travel often involves a travel management company, or its online tools. Travel managers negotiate with suppliers and ensure that all the trip components are cost effective and comply with the policies of the organization.

Many business travel planners rely on global distribution systems (GDS) to price and plan components. GDS combine information from a group of suppliers, such as airlines. In the past, this has created a chain of information from the supplier to GDS to the travel management company. Today, however, there is a push from airlines (through the International Air Transport Association’s Resolution 787) to dissolve the GDS model and forge direct relationships with buyers (BTN Group, 2014).

Destination Management Companies

According to the Association of Destination Management Executives (ADME), a destination management company (DMC) specializes in designing and implementing corporate programs, including “events, activities, tours, transportation and program logistics” (ADME, 2014). The packages produced by DMCs are extraordinary experiences rather than general business trips. These are typically used as employee incentives, corporate retreats, product launches, and loyalty programs. DMCs are the one point of contact for the client corporation, arranging for airfare, airport transfers, ground transportation, meals, special activities, and special touches such as branded signage, gifts, and decor (ADME, 2014). The end user is simply given (or awarded) the package and then liaises with the DMC to ensure particular arrangements meet his or her needs and schedule.

As you can see, travel services range from online to personal, and from leisure to business applications. Now that you have a general sense of the components of travel services, let’s look at some examples in Canada and BC.

Travel Services in Canada and BC

Travel Agencies

In British Columbia and elsewhere in Canada, many agencies are members of the Association of Canadian Travel Agencies (ACTA). ACTA is an industry-led, membership-based organization that aims to ensure customers have professional and meaningful counselling. Membership is optional, but it does offer the benefit of ensuring customers receive the required services and that the travel agencies have a membership board for reference and industry resources (ACTA, 2014).

Although travel agencies may be located in a specific community, the agencies and their representatives may operate internationally, within Canada, within BC, or across regions. In Vancouver alone there are over 500 travel agencies available to the searching traveller (Travel Agents in BC, 2014). Examples of some of the more recognized larger travel agencies and agents operating in BC include the British Columbia Automobile Association (BCAA), Marlin Travel, and Flight Centre.

Tour Operators

Many different types of tour operators work across BC and Canada. Tour operators can specialize in any sector or a combination of sectors. A company may focus on ski experiences, as is the case with Destination Snow, or perhaps wine tours in the Okanagan, which is the specialty of Distinctly Kelowna Tours. These operators specialize in one area but there are others that work with many different service providers.

Tour operators can vary in size, niche market, and operation capacity (time of year). An example of a niche BC tour operator is Prince of Whales Whale Watching in Victoria. Prince of Whales offers specialty whale-watching tours year-round in a variety of boat sizes, working with the local DMO and other local booking agents to sell tours as part of packages or as a stand-alone service to travellers. It also works to sell its product directly to the potential traveller through its website, reservation number, and in-person sales agents (Prince of Whales, 2014).

Figure 7.5 Whales off of Victoria, BC

Examples of large RTOs representing Canada internationally include Jonview or CanTours. Operators of all kinds frequently work closely with a number of destination marketing organizations, as evidenced during Canada’s West Marketplace, which is a trade marketplace hosted by Destination BC and Travel Alberta. Each year the location of the marketplace alternates between Alberta and BC (past locations have included Kelowna and Canmore). This event provides an opportunity for Alberta and BC sellers (tour operators, local accommodation, activities, and DMOs) to sell their products to international RTOs who in turn work with international tour operators and travel agents to repackage the travel products. In a span of 10-minute sessions, sellers market and promote their products in hopes of having an RTO pick up the package for future years.

On a national scale, Rendez-vous Canada is a tourism marketplace presented by the Canadian Tourism Commission that brings together more than 1,500 tourism professionals from around the world for a series of 12- minute sessions where they can learn more about Canadian tours and related services (Canadian Tourism Commission, 2015).

Let’s now look a little closer at the role of BC destination marketing organizations (DMOs) in providing travel services.

Destination Marketing Organizations

At the national level, the Canadian Tourism Commission (CTC) is responsible for strategic marketing of the country. It works with industry and government while providing resources for small and medium-sized businesses in the form of toolkits. In BC, there a variety of travel service providers available to help with the planning process including Destination BC/HelloBC, regional destination marketing organizations (RDMOs), and local DMOs.

Destination BC/HelloBC

HelloBC is the official travel service platform of Destination BC, British Columbia’s provincial DMO. HelloBC.com offers access to festival activities, accommodation, transportation options, and trip ideas. This website is complemented by a social media presence through Facebook, Twitter, and Instagram (HelloBC, 2014a). Although the online resources are highly detailed, visitors also have the option of ordering a paper copy of the BC Travel Guide.

To assist with trip planning, HelloBC features a booking agent system, offering discounts and special deals created in partnership with operators. Although the site can process these value-added components, it does not handle accommodation bookings, instead directing the interested party to the reservation system of a chosen provider.

Figure 7.6 Cyclists make a stop at a Visitor Centre, with its distinctive blue and yellow logo

In addition to operating HelloBC, Destination BC also oversees a network of 136 Visitor Centres that can be identified by the blue and yellow logo. These are a source of itinerary information for the FIT and a purchase point for travellers wishing to book trip components (HelloBC, 2014b).

Regional Destination Marketing Organizations

BC is divided into five regional destination marketing organizations, or RDMOs: Vancouver Island, Thompson Okanagan, Northern British Columbia, Cariboo Chilcotin Coast and the Kootenay Rockies (HelloBC, 2014c). Along with Destination BC, these RDMOs work to market their particular region.

Figure 7.7 A tour group in the Kootenay Rockies

Housed within the HelloBC online platform, each RDMO has an online presence and travel guide specific to the region as well as a regional social media presence. These guides are important as they allow regional operators to participate in the guide and consumer website in order to encourage visitation to the area and build their tourism operations.

Community Destination Marketing Organizations

Community destination marketing organizations (CDMOs) are responsible for marketing a specific destination or area, such as Whistler or Kimberley. Travel services typically offered include hotel search engines, specific destination packages and offers, discounts, events and festival listings, and other information of interest to potential visitors. In the absence of a CDMO, sometimes these services are provided by the local chamber of commerce or economic development office.

Complementing BC’s Visitor Centre network mentioned earlier, local visitor centres are managed by individual communities. Visitor centres may be housed in gateway buildings at strategic locations, in historic or cultural buildings, or at an office located in town. They are designed to provide general information to travellers and may include other services such as booking hotels, free Wi-Fi, and help from a visitor information counsellor (SGSEP, 2012).

Other Systems and Organizations

A number of customized and targeted reservation systems are used by BC DMOs and other organizations. One example is the BC campground reservation online booking systems. BC Parks, Parks Canada, and private campground operators all use different proprietary reservation systems. Both BC Parks and Parks Canada reservation systems open on a specific date in the spring for bookings later in the year. These systems let visitors review what a site looks like through photos or video and pick which site they would like to book in the campground. Many campgrounds also offer a first-come-first-served system, as well as overflow sites, to accommodate visitors who may not have reserved a site.

In the business market, there are several companies in BC and Canada that facilitate planning and booking. Concur is an example of a travel management company widely used in British Columbia and Canada by organizations including CIBC, Kellogg’s, and Pentax. It provides services including trip planning software for use by employees, expense and invoicing software for use by managers, and a mobile application that ensures clients can take the technology on the go. Its services have contributed to client savings, such as reducing the travel expenses for one client by almost one-fifth in their first year of use in Ontario (Concur, 2014).

BC is home to several DMCs including Cantrav, Pacific Destination Services, and Rare Indigo (Tourism Vancouver, 2014). All offer event services as well as turnkey operations (where all logistics are handled by the DMC and invoiced to the corporation).

So far we’ve looked at travel services as defined by NAICS. Next let’s have a closer look at additional services generally considered to be part of the tourism economy.

Tourism Services

Many organizations can have a hand in tourism development. These include:

• Sector-specific associations
• Tourism and hospitality human resources organizations
• Training providers
• Educational institutions
• Government branches and ministries in land use, planning, development, environmental, transportation, and other related fields
• Economic development and city planning offices
• Consultants

The rest of this section describes Canadian and BC-based examples of these.

Sector-Specific Associations

Numerous not-for-profit and arm’s-length organizations drive the growth of specific segments of our industry. Examples of these associations can be found throughout this textbook in the Spotlight On features, and include groups like:

• BC Hotel Association
• Sea Kayak Guides Alliance of BC
• Restaurants Canada

These can serve as regulatory bodies, advocacy agencies, certification providers, and information sources.

Tourism and Hospitality Human Resource Support

The Canadian Tourism Human Resource Council (CTHRC) is a national sector council responsible for best practice research, training, and other professional development support on behalf of the 174,000 tourism businesses and the 1.75 million people employed in tourism-related occupations across the country. In BC, an organization called go2HR serves to educate employers on attracting, training, and retaining employees, as well as hosts a tourism job board to match prospective employees with job options in tourism around the province.

Training Providers

Throughout this textbook, you’ll see examples of not-for-profit industry associations that provide training and certification for industry professionals. For example, the Association of Canadian Travel Agents offers a full-time and distance program to train for the occupation of certified travel counsellor. Closer to home, an organization called WorldHost, a division of Destination BC, offers world-class customer service training.

You’ll learn more about training providers and tourism human resources development in Chapter 9: Customer Service.

Educational Institutions

Figure 7.8 President and CEO of Tourism Vancouver, Rick Antonson, at a LinkBC networking event in early 2014

British Columbia is also home to a number of high-quality public and private colleges and universities that offer tourism-related educational options. Training options at these colleges and universities include certificates, diplomas, degrees and masters-level programs in adventure tourism, outdoor recreation, hospitality management, and tourism management. Whether students are learning how to manage a restaurant at Camosun College, gaining mountain adventure skills at College of the Rockies, or exploring the world of outdoor recreation and tourism management at the University of Northern BC, tomorrow’s workforce is being prepared by skilled instructors with solid industry experience.

Government Departments

At the time this chapter was written, there were at least eight distinct provincial government ministries that had influence on tourism and hospitality development in British Columbia. These are:

• Community, Sport and Cultural Development
• Jobs, Tourism and Skills Training
• Advanced Education
• Transportation and Infrastructure
• Environment
• Forests, Lands and Natural Resource Operations
• International Trade
• Small Business and Economic Development

Ministry names and responsibilities may change over time, but the functions performed by provincial ministries are critical to tourism operators and communities, as are the functions of similar departments at the federal level.

At the community level, tourism functions are often performed by planning officers, economic development officers, and chambers of commerce.

Consultants

A final, hidden layer to the travel services sector is that of independent consultants and consulting firms. These people and companies offer services to the industry in a business-to-business format, and they vary from individuals to small-scale firms to international companies. In BC, tourism-based consulting firms include:

• IntraVISTAS: specializing in aviation and transportation logistics advising
• Chemistry Consulting: specializing in human relations and labour market development
• Tartan: a public-relations and reputation management firm

For many people trained in specific industry fields, consulting offers the opportunity to give back to the industry while maintaining workload flexibility.

Trends and Issues

Now that we have an understanding of the travel and tourism services providers in BC, let’s review some of the current trends and issues in the sector.

Budgets

In the travel services sector, providers such as OTAs and business travel managers must constantly be aware of price sensitivity. Many tourism services organizations are not-for-profit entities that rely on membership dues, donations, grants, and government funding to survive. As the economic climate becomes strained and budgets are tightened, all groups are increasingly forced to demonstrate return on investment to stakeholders. As some of the benefits of travel services are difficult to define, groups must innovate or face extinction.

The challenge of budget constraints came to life in late 2014 when Destination BC announced it was shutting down its Visitor Centres at Vancouver International Airport and reviewing five other gateway locations including Peace Arch and Golden. While the airport locations welcomed over 180,000 visitors per year, analysis performed by Destination BC showed guests were asking non-tourism questions, and the centres’ value was questioned. Closing the centres at the airport, it was determined, would save $500,000 per year — but some in the industry were left wondering why they weren’t consulted prior to the announcement (Smyth, 2014).

Technology

Figure 7.9 Tablets, laptops, and mobile phones put reservations and booking options at the traveller’s fingertips.

As discussed earlier, online travel agencies have revolutionized the sector in a short span of time. Online travel bookings and marketing accounts for roughly one-third of all global e-commerce, and according to many these continue to rattle the sector.

That said, OTAs and other technology providers can benefit operators and the travel services sector as a whole. Keeping in mind that travel services pertain to the planning and reserving of trip components, recent beneficial technologic improvements include the following (Orfutt, 2013):

• Real-time and automated inventory management, ensuring operators and travellers alike are working with accurate information when planning and booking
• A pollution and weather detection chip that would help tour operators, transportation providers, and visitors anticipate, and plan for changes in conditions
• Personalized information presented to visitors to help them narrow their choices in the trip planning process, ensuring users are not overwhelmed with information, and making the most of limited screen size on mobile devices and tablets
• Social technologies and on-the-go information sharing, allowing users to plan at the last minute as they travel
• Virtual assistant holograms and tablets carrying information that can replace humans during the travel experience (for instance, at airport arrivals and visitor centres)

These innovations will likely increase as more advances are made. They also have significant implications for the marketing of travel products and experiences, which is explored more in Chapter 8.

Conclusion

In a time when financial resources are limited and competition for tourist dollars is strong, the travel services sector is being forced to innovate at a startling rate. With the emergence of OTAs and the rapid pace of change, it’s likely the travel services landscape will be radically different by the time you read this.

Just 20 years ago, the travel agent was paramount for booking both leisure and business travel, while today’s traveller can book a trip using a phone in a matter of minutes. This is one sector with challenging and exciting times ahead.

To this point we have learned about the five sectors of tourism: transportation, accommodation, food and beverage, recreation and entertainment, and travel services. With this foundation in place, let’s delve deeper into the industry by learning more about how these sectors are promoted to customers in Chapter 8 on services marketing.

References

ACTA. (2014). About us. Retrieved from www.acta.ca/about-us

ADME. (2014). What is a DMC? Retrieved from www.adme.org/dmc/what-is-a-dmc.asp

Alba, Davey. (2015, January 23). Expedia buys Travelocity, merging two of the web’s biggest travel sites. WIRED. Retrieved from www.wired.com/2015/01/expedia-buys-travelocity-merging-two-webs-biggest-travel-sites/

Amadeus. (2014). Trending with NextGen travelers [PDF]. Retrieved from https://extranets.us.amadeus.com/whitepaper/nextgen/next_gen_travel_trends.pdf

Associated Press. (2014, March 17). Helena judge rejects state’s lawsuit against online travel companies. The Missoulian. Retrieved from http://missoulian.com/business/local/helena-judge-rejects-state-s-lawsuit-against-online-travel-companies/article_61b115d2-adfe-11e3-9b8d-0019bb2963f4.html

BTN Group. (2014). Global travel trends 2014. Business Travel News. [PDF] Retrieved from www.businesstravelnews.com/uploadedFiles/White_Papers/BTN_110113_Radius_1206_FINAL.pdf

Canadian Tourism Commission. (2015). Rendez-vous Canada 2015 – Welcome. Retrieved from http://rendezvouscanada.travel/

Carey, R., Kang, K., & Zea, M. (2012). The trouble with travel distribution. Retrieved from  www.mckinsey.com/insights/travel_transportation/the_trouble_with_travel_distribution

CATO. (2014). About the travel industry. Retrieved from www.cato.ca/industry.php

Concur. (2014). Concur case studies – Concur Canada. Retrieved from www.concur.ca/casestudy

CWT Travel Management Institute. (2014). Who’s equipped for mobile services.  www.cwtinsights.com/demand/whos-equipped-for-mobile-services.shtml

DMAI. (2014). The value of DMOs. Retrieved from www.destinationmarketing.org/value-dmos

Economist, The. (2014, June 21). Sun, sea and surfing. Retrieved from www.economist.com/news/business/21604598-market-booking-travel-online-rapidly-consolidating-sun-sea-and-surfing

ETC Digital. (2014). Mobile smartphones – North America. Retrieved from http://etc-digital.org/digital-trends/mobile-devices/mobile-smartphones/regional-overview/north-america/

Expedia, Inc. (2014). The future of travel report. [PDF] Retrieved from http://expediablog.co.uk/wp-content/uploads/2013/10/Future-of-Travel-Report1.pdf

GBTA. (2014). About GBTA Canada. Retrieved from www.gbta.org/Canada/about/Pages/Default.aspx

Goeldner, C. & Ritchie, B. (2003). Tourism: principles, practices, philosophies, 9th edition. Hoboken, New Jersey: John Wiley & Sons, Inc.

Government of Canada. (2014). NAICS 2007 – 5615 travel arrangement and reservation services. Retrieved from http://stds.statcan.gc.ca/naics-scian/2007/cs-rc-eng.asp?criteria=5615

go2HR. (2014). Training and education. Retrieved from www.go2hr.ca/training/training-directory?keys=travel+agent&location=&sector=All&region=All

Harris, A. & Sasso, M. (2014). United, Orbitz sue travel site over ‘hidden city’ tickets. Bloomberg Business. Retrieved from www.bloomberg.com/news/articles/2014-11-18/united-orbitz-sue-travel-site-over-hidden-city-ticketing-1-

HelloBC. (2014a). About us. Retrieved from www.hellobc.com/british-columbia.aspx

HelloBC. (2014b). Visitor information network. Retrieved from www.hellobc.com/british-columbia/about-bc/visitor-centres.aspx

HelloBC. (2014c). Regions. Retrieved from www.hellobc.com/british-columbia.aspx

Hotel Marketing. (2013). Travel agency demand. Retrieved from http://www.hotelmarketing.com/index.php/content/article/travel_agencies_versus_the_internet_global_booking_trends/

Offutt, B. (2013). PhoCusWright’s travel innovations & technology trends: 2013 and beyond. [PDF] Retrieved from www.wtmlondon.com/files/pcwi_traveltechtrends2013_worldtravel.pdf

Prince of Whales. (2014).  About us. Retrieved from http://princeofwhales.com

SGSEP. (2012). Trends in visitor information centres. [PDF] Urbecon, 1.  Retrieved from www.sgsep.com.au/assets/Urbecon-Vol-1-2012-web.pdf

Smyth, M. (2014, November 20). Why is the BC government shutting down popular tourist info without consulting industry? The Vancouver Sun. Retrieved from www.theprovince.com/life/Smyth+government+shutting+down+popular+tourist+info+centres+without+consulting+industry/10396500/story.html#__federated=1

Tourism Vancouver. (2014). Destination management companies. Retrieved from www.tourismvancouver.com/meetings/service-your-meeting/suppliers/destination-management-companies/

Travel Agents in BC. (2014). Travel agents. Retrieved from www.yellowpages.ca/search/si/1/Travel+Agencies/Vancouver+BC

Yukon Department of Tourism and Culture. (2013). Tourism sectors. Retrieved from www.tc.gov.yk.ca/isu_sectors.html

Attributions

Figure 7.1 HelloBC Homepage by LinkBC is used under a CC BY-NC-ND 2.0 license.

Figure 7.2 Travels Agent, Huddersfield by Dave Collier is used under a CC-BY-ND 2.0 license.

Figure 7.3 my AT&T PC 6300 circa 1996 by Blake Patterson is used under a CC-BY 2.0 license.

Figure 7.4 Up on the glacier by Paul Gorbould is used under a CC BY NC ND 2.0 license.

Figure 7.5 Whales off Victoria, BC by Brian Estabrooks is used under a CC-BY-SA 2.0 license.

Figure 7.6 Visitor Information by Heather Harvey is used under a CC-BY-SA 2.0 license.

Figure 7.7 Floe Lake, Kootenay National Park 037 by Adam Kahtava is used under a CC-BY 2.0 license.

Figure 7.8 Tourism Vancouver’s Rick Antonson addresses the audience at Rendezvous by LinkBC is used under a CC-BY-NC-SA 2.0 license.

Figure 7.9 5 Top Rated Tablet PCs by Siddartha Thota is used under a CC-BY 2.0 license.

Ray Freeman and Kelley Glazer

Overview

Figure 8.1 A vintage ad marketing the cost-effectiveness of Econo-Travel hotels from the July 1978 National Geographic [Long Description]

Marketing is a continuous, sequential process through which management plans, researches, implements, controls, and evaluates activities designed to satisfy the customers’ needs and wants, and meet the organization’s objectives. According to Morrison (2010), services marketing “is a concept based on a recognition of the uniqueness of all services; it is a branch of marketing that specifically applies to the service industries”(p. 767).

Marketing in the tourism and hospitality industry requires an understanding of the differences between marketing goods and marketing services. To be successful in tourism marketing, organizations need to understand the unique characteristics of their tourism experiences, the motivations and behaviours of travelling consumers, and the fundamental differences between marketing goods and services.

The Evolution of Marketing

Until the 1930s, the primary objective of businesses was manufacturing, with little thought given to sales or marketing. In the 1930s, a focus on sales became more important; technological advances meant that multiple companies could produce similar goods, creating increased competition. Even as companies began to understand the importance of sales, the needs and wants of the customer remained a secondary consideration (Morrison, 2010).

In 1944, the first television commercial, for Bulova watches, reached 4,000 sets (Davis, 2013). The decades that followed, the 1950s and 1960s, are known as an era when marketing began to truly take off, with the number of mediums expanding and TV ad spending going from 5% of total TV revenues in 1953 to 15% just one year later (Davis, 2013).

Figure 8.2 A 1970s Peter Max-designed ad for the American Cancer Society urging people to not smoke

The era from approximately 1950 to around 1970 was known as a time of marketing orientation (Morrison, 2010). Customers had more choice in product, this required companies to shift focus to ensure that consumers knew how their products matched specific needs. This was also the time where quality of service and customer satisfaction became part of organizational strategy. We began to see companies develop internal marketing departments, and in the 1960s, the first full-service advertising agencies began to emerge.

Societal marketing emerged in the 1970s when organizations began to recognize their place in society and their responsibility to citizens (or at least the appearance thereof). This change is demonstrated, for example, by natural resource extraction companies supporting environmental management issues and implementing more transparent policies. This decade saw the emergence of media we are familiar with today (the first hand-held mobile phone was launched in 1973) and the decline of traditional marketing through vehicles such as print; the latter evidenced by the closure of LIFE Magazine in 1972 amid complaints that TV advertising was too difficult to compete with (Davis, 2013).

The mid-1990s ushered in the start of the online marketing era. E-commerce (electronic commerce) revolutionized every industry, perhaps impacting the travel industry most of all. Tourism and hospitality service providers began making use of this technology to optimize marketing to consumers; manage reservations; facilitate transactions; partner and package itineraries; provide (multiple) customer feedback channels; collect, mine, analyze, and sell data; and automate functions. The marketing opportunities of this era appear limitless. Table 8.1 summarizes the evolution of marketing over the last century.

Typically, the progression of marketing in tourism and hospitality has been 10 to 20 years behind other sectors. Some in the industry attribute this to the traditional career path in the tourism and hospitality industry where managers and executives worked their way up the ranks (e.g., from bellhop to general manager) rather than through a postsecondary business education. It was commonly believed that to be a leader in this industry one had to understand the operations inside-out, so training and development of managers was based on technical and functional capabilities, rather than marketing savvy. And, as we’ll learn next, marketing services and experiences is distinct and sometimes more challenging than marketing goods. For these reasons, most businesses in the industry have been developing marketing skills for only about 30 years (Morrison, 2010).

Differences Between Goods and Services

Figure 8.3 Selling a moment like this one, captured over the holidays in Victoria’s harbour, is different from selling a tube of toothpaste.

There are four key differences between goods and services. According to numerous scholars (Regan; Rathmell; Shostack; Zeithaml et al. in Wolak, Kalafatis, & Harris, 1998) services are:

1. Intangible
2. Heterogeneous
3. Inseparable (simultaneously produced and consumed)
4. Perishable

The rest of this section details what these concepts mean.

Intangibility

Tangible goods are ones the customer can see, feel, and/or taste ahead of payment. Intangible services, on the other hand, cannot be “touched” beforehand. An airplane flight is an example of an intangible service because a customer purchases it in advance and doesn’t “experience” or “consume” the product until he or she is on the plane.

Heterogeneity

While most goods may be replicated identically, services are never exactly the same; they are heterogeneous. Variability in experiences may be caused by location, time, topography, season, the environment, amenities, events, and service providers. Because human beings factor so largely in the provision of services, the quality and level of service may differ between vendors or may even be inconsistent within one provider. We will discuss quality and level of service further in Chapter 9.

Inseparability

A physical good may last for an extended period of time (in some cases for many years). In contrast, a service is produced and consumed at the same time. A service exists only at the moment or during the period in which a person is engaged and immersed in the experience.

Figure 8.4 These empty seats represent lost revenue for the airline.

Perishability

Services and experiences cannot be stored; they are highly perishable. In contrast, goods may be held in physical inventory in a lot, warehouse, or a store until purchased, then used and stored at a person’s home or place of work. If a service is not sold when available, it disappears forever. Using the airline example, once the airplane takes off, the opportunity to sell tickets on that flight is lost forever, and any empty seats represent revenue lost.

Planning for Services Marketing

To ensure effective services marketing, tourism marketers need to be strategic in their planning process. Using a tourism marketing system requires carefully evaluating multiple alternatives, choosing the right activities for specific markets, anticipating challenges, adapting to these challenges, and measuring success (Morrison, 2010). Tourism marketers can choose to follow a strategic management process called the PRICE concept, where they:

• P: plan (where are we now?)
• R: research (where would we like to be?)
• 
I: implement (how do we get there?)
• C: control (how do we make sure we get there?)
• E: evaluate (how do we know if we got there?)

In this way, marketers can be more assured they are strategically satisfying both the customer’s needs and the organization’s objectives (Morrison, 2010). The relationship between company, employees, and customers in the services marketing context can be described as a services marketing triangle (Morrison, 2010), which is illustrated in Figure 8.5.

Figure 8.5 Services marketing triangle [Long Description] (adapted from Morrison, 2010)

In traditional marketing, a business broadcasts messaging directly to the consumer. In contrast, in services marketing, employees play an integral component. The communications between the three groups can be summarized as follows (Morrison, 2010):

1. External marketing: promotional efforts aimed at potential customers and guests (creating a promise between the organization and the guest)
2. Internal marketing: training, culture, and internal communications (enabling employees to deliver on the promise)
3. Interactive marketing: direct exchanges between employees and guests (delivering the promise)

The direct and indirect ways that a company or destination reaches its potential customers or guests can be grouped into eight concepts known as the 8 Ps of services marketing.

8 Ps of Services Marketing

The 8 Ps are best described as the specific components required to reach selected markets. In traditional marketing, there are four Ps: price, product, place, and promotion. In services marketing, the list expands to the following (Morrison, 2010):

• Product: the range of product and service mix offered to customers
• Place: how the product will be made available to consumers in the market, selection of distribution channels, and partners
• Promotion: specific combination of marketing techniques (advertising, personal sales, public relations, etc.)
• Pricing: part of a comprehensive revenue management and pricing plan
• People: developing human resources plans and strategies to support positive interactions between hosts and guests
• Programming: customer-oriented activities (special events, festivals, or special activities) designed to increase customer spending or length of stay, or to add to the appeal of packages
• Partnership: also known as cooperative marketing, increasing the reach and impact of marketing efforts
• Physical evidence: ways in which businesses can demonstrate their marketing claims and customers can document their experience such as stories, reviews, blog posts, or in-location signage and components

It’s important that these components all work together in a seamless set of messages and activities known as integrated marketing communications, or IMC, to ensure the guests receive a clear message and an experience that meets their expectations.

Integrated Marketing Communications

Figure 8.6 During the 2010 Winter Olympics in Vancouver, many marketing partners came together to deliver an integrated experience to guests, including shopping malls disguised as igloos.

Integrated marketing communications (IMC) involves planning and coordinating all the promotional mix elements (including online and social media components) to be as consistent and mutually supportive as possible. This approach is much superior to using each element separately and independently.

Tour operators, attractions, hotels, and destination marketing organizations will often break down marketing into separate departments, losing the opportunity to ensure each activity is aligned with a common goal. Sometimes a potential visitor or guest is bombarded with messaging about independent destinations within a region, or businesses within a city, rather than one consistent set of messages about the core attributes of that destination.

It’s important to consider how consumers use various and multiple channels of communication and reach out to them in a comprehensive and coherent fashion. As a concept, IMC is not new, but it is more challenging than ever due to the numerous social media and unconventional communication channels now available. Each channel must be well maintained and aligned around the same messages, and selected with the visitor in mind. Too often businesses and destinations deploy multiple channels and end up neglecting some of these, rather than ensuring key platforms are well maintained (Eliason, 2014).

In order to better understand our guests, and the best ways to reach them, let’s take a closer look at the consumer as the starting and focal point of any marketing plan.

Consumer Behaviour in Tourism and Hospitality

Customers use their senses to see, hear, smell, and touch (and sometimes taste) to decipher messages from businesses, deciding on a product or service based on their perception of the facts rather than, at times, the actual facts. A number of factors have been shown to impact the choices the consumer makes, including personal factors, which reflect needs, wants, motivations, previous experience, and a person’s lifestyle, and interpersonal factors, such as culture, social class, family, and opinion leaders.

Perception Is Reality

The area of perception can be further broken down to screens and filters, biases, selective retention, and closure (Morrison, 2010). Let’s look at these concepts in more detail.

Figure 8.7 All people view things through their own perceptual filters.

The world is filled with things that stimulate people. People are exposed to thousands of messages every day. Some stimuli come from the people around us; for example, a person on the bus might be wearing a branded cap, the bus may have advertising pasted all over it, and free newspapers distributed at the bus station could be filled with advertising. The human brain cannot absorb and remember all of these messages; people will screen out most of the stimuli they are exposed to. They may remember a piece or segment of a message they have seen or heard.

Figure 8.8 A “vending machine” in San Francisco entices people to experience 100 BC Moments

Perceptual Biases

Everyone has perceptual biases; each person sees things from his or her own unique view of the world. An advertising message can be received and changed to something very different from the marketer’s intended statement.

Selective Retention

Once messages have made it through the screens, filters, and biases, they still may not be retained for long. Customers will practise selective retention, holding on only to the information that supports their beliefs and attitudes.

Closure

Figure 8.9 People use multiple filters to process information.

The brain does not like incomplete images. There is a state of psychological tension present until the image is complete (closure). Where information is unavailable to round out the images, the mind adds the missing data. Over time, through the use of imagery and music (such as jingles), messages are ingrained in a customer’s mind, and he or she automatically adds the company’s name, whether it is mentioned or not.

Applying Psychology to Marketing

Marketers may determine a degree of predictability about customer perceptions. 

Customers are likely to:

• Screen out information that they are already familiar with
• Notice and retain information to satisfy a need they are aware of (want)
• Purchase services that reflect the image they perceive themselves to project
• Notice and retain things out of the norm
• Attach credibility to personal information rather than commercially generated information

Customers are less likely to:

• Use perceptual biases to distort information received on an interpersonal basis
• Absorb complicated information that requires effort to comprehend
• Notice and retain information about a competitive service or product if they are satisfied with another brand

Tourism marketers are in the business of reminding and making customers aware of their needs. Customers have to be motivated to act on satisfying their wants and needs, while marketers need to trigger the process by supplying objectives and potential motives.

Consumer Decision-Making Process

Figure 8.10 The Victoria Visitor Centre (at the base of the tower), located in downtown’s bustling harbour, helps consumers through the decision-making process.

In 1968, Kollat, Blackwell and Engel released the first edition of a book called Consumer Behavior where they identified a distinct five-step pattern for consumer decision-making (1972). These steps are: need recognition, information search, pre-purchase evaluation, purchase, and post-purchase evaluation.

Here are some critical components at each stage:

• Need recognition: For this process to start there needs to be a stimulus; a need must be triggered and identified.
• Information search: The customer begins to consult different sources of information; personal (marketer dominated) and intrapersonal (non-marketer) factors will likely be used.
• Pre-purchase evaluation: After researching the choices, the customer starts to evaluate options using both objective criteria, such as price and location, and subjective criteria, such as the perceived status of the product or service.
• Purchase: The customer intends to buy the product or service that best matches the criteria, although he or she can still be influenced by a number of factors, such as friends and family who disagree with the purchase, or a change in personal finances.
• Post-purchase evaluation: After use, the customer evaluates the purchase against expectations; if these don’t match, the customer will be either dissatisfied (expectations not met) or impressed (expectations exceeded). For this reason, it’s best for hospitality and tourism providers to “under promise” and “over deliver.”

In order to reach consumers and stimulate need, tourism marketers can employ a number of traditional and online channels. These are detailed in the next section.

Reaching the Consumer

Marketers have more choices than ever when it comes to broadcasting their message to consumers. Potential travellers and guests will respond, in varying degrees, to traditional channels and emerging online communications tools. There are many choices in marketing and communication channels, each with strengths and weaknesses. Determining the right mix, frequency, and message depends heavily on establishing objectives, completing research, performing a situational analysis, and creating a positioning approach (Morrison, 2010). Let’s take a closer look at communications channels that may form part of the marketing mix.

Traditional Channels

Mass Media

Mass media is best described as the use of channels that reach very large markets. Examples include national newspapers and radio or television advertising. The immediate advantage of using mass media is the ability to reach multiple target markets in significant numbers. Disadvantages include the high expense and difficulty in effective target marketing and measuring return.

Figure 8.11 This is an out-of-home ad for Grouse Mountain, in a downtown Vancouver rapid transit station, targeting people working in the area. Note the special web address for the campaign: grousemountain.com/night-ski .

Out-Of-Home (OOH)

Out-of-home (OOH) channels refer to four major categories: billboards, transit, alternative outdoor, and street furniture.  OOH advertising plays an important role in the tourism and hospitality industry as it provides an opportunity to inform travellers in unfamiliar territory. Transit advertising includes airports, rail, and taxi displays. Alternative outdoor refers to arenas, stadiums, and digital media. Street furniture includes bus shelters, kiosks, and shopping malls.

Print Media

Print media includes newspapers, magazines, journals, and directories. There is an increased trend away from traditional purchased print advertising toward editorial features, as these are more trusted by consumers. A print ad and an editorial feature created together is known as an advertorial.

Online Channels

Figure 8.12 This is a webpage detailing cross-promotion and partnership between the Fairmont Empress Hotel and Helijet. Consumers are being offered this transportation option next to the hotel booking info.

As discussed in Chapter 7, the internet is nearly twice as important as travel agents as an information source for travel (Deloitte, 2015). There are an estimated 3 billion people around the globe with internet access, and social media has become truly integrated into the travel and hospitality industry. TripAdvisor and similar sites have become the customer’s first point of connection with tourism and hospitality products and experiences. This can be both an opportunity and a threat: an opportunity to open the channels of communication, but a threat if negative information about the travel or hospitality organization is widely spread. As online distribution expands, empowered and savvy travellers are unbundling the booking component and self-booking directly (Deloitte, 2015).

Internet and mobile technology are referred to as interactive media. For tourism and hospitality businesses, there are significant advantages to creating an online presence: it’s cost effective, it provides global reach, it allows a business to be available 24/7, and it provides a reciprocal communication platform for customers.

Social Media and Reputation Management

There are also challenges with online marketing, including being noticed within the volume of information customers are exposed to, and loss of control in delivering a message. Despite these challenges, as more consumers seek real-time information online, tourism marketers are responding with increasingly sophisticated online marketing strategies. This section draws from resources and expertise provided by WorldHost Training Services (2013).

Social Media

Social media is a broad term that refers to web-based and mobile applications used for social interaction and the exchange of content. Social networking is the act of using social media. Unlike traditional media such as newspapers, magazines, and television, social media is largely powered by user-generated content. This refers to content created and shared by consumers rather than by marketers, journalists, experts, and other paid professionals, although they too contribute to social networks.

Word of Mouth in the Age of Social Media

Social networking has transformed how many people interact with businesses and share experiences with others, in a communication channel known as word of mouth where customers share directly with each other. Consumers now have a variety of channels on which to express likes and dislikes, many of which have large audiences. Some of this commentary is made in real time, on a smartphone, while the customer is still in the business (WorldHost, 2013).

Advertising and Trust

Social networks, and review sites in particular, are used more and more to seek information and advice on things to do and products and services to purchase. Travellers and locals alike check out these sites for ideas on where to stay, eat, relax, shop, and explore. These channels are highly trusted. A survey of over 28,000 consumers in 56 countries found that consumers trust the advice of people they know (92%) and consumer opinions posted online (70%) more than any other advertising source (Nielsen, 2012).

Online Reviews = Business Success

Research shows a direct correlation between consumer reviews and purchase decisions. A 2011 survey by Phocuswright found that three in four active travellers cite reviews and photos as influential in choosing activities (PR Newswire, 2011). A 2011 study conducted by Harvard Business School found that, for independent restaurants, a one-star increase in Yelp ratings led to a 5% to 9% increase in revenue (Luca, 2011). And, according to a study by the Cornell Center for Hospitality Research, if a hotel increases its review score on Travelocity by 1 point on a 5-point scale, it can raise its price by 11.2% without affecting demand (Anderson, 2012).

Understanding Customer Needs

As we have discussed, service plays an important role in shaping customer impressions, where the ultimate goal of a tourism or hospitality business is to exceed expectations. Every customer has different wants and needs, but virtually all customers expect the following basic needs to be taken care of:

• Quality
• Value
• Convenience
• Good service

To fully satisfy customers, businesses must deliver in all four areas. If they meet the basic needs listed above, they’ll create a passive customer — one who is satisfied, but not likely to write a review or mention a business to others.

Figure 8.13 This unhappy customer is likely to broadcast news of her bad experience across multiple platforms.

On the other hand, failure to deliver on the promise can result in a disappointed customer undoing all the efforts of the marketing plan. For this reason, the entire process must be well coordinated and well executed.

Bringing it All Together

The Role of Destination BC

Destination BC is responsible for executing key components of the provincial government’s tourism strategy (British Columbia Ministry of Jobs, Tourism and Innovation, 2011). As we learned in the last chapter, this provincial destination marketing organization has been mandated to fulfill several key marketing and leadership responsibilities critical to the long-term sustainable growth of the provincial tourism industry. This includes marketing British Columbia domestically, nationally, and internationally as a tourist destination (Destination BC, n.d.). Its first three-year corporate and marketing strategy was released in November 2014 articulating its new vision, mission, and goals.

Market Segmentation

Tourism marketers, including the team at Destination BC, choose target markets for their efforts through market segmentation techniques, where potential visitors are separated by:

• Demographics
• Countries of origin
• Trip purposes
• Trip planning and arrangements
• Psychographics and lifestyles
• Special interests
• Technology uses

The Canadian Tourism Commission’s award-winning Explorer Quotient program provides tourism marketers with detailed psychographic and travel motivations information (Canadian Tourism Commission, 2008; 2012). It allows destinations and experiences to market themselves to target audiences based on psychographic profiles (their psychological tendencies) rather than geographic segments.

BC’s Tourism and Hospitality Key Markets

BC’s key target tourism markets can be broken down into three main categories: nearby markets, top priority markets, and emerging markets (BC Ministry of Jobs, Tourism and Innovation, 2011).

Nearby markets are BC, Alberta, and Washington State, which are characterized by high volume and strong repeat visitation. Marketing activities to these areas are led by the regions, communities, and/or sectors such as ski. Top priority markets of Ontario, California, Germany, Japan, United Kingdom, South Korea, Australia are characterized by high revenue and high spending per visitor. Marketing efforts here are led by Destination BC. Emerging markets, which include China, India, and Mexico, are monitored and explored by Destination BC.

Performance Measurement and Evaluation

In order to measure its success in the realm of destination marketing, Destination BC has introduced a tool called the net promoter score (NPS), a metric designed to monitor customer engagement. The NPS indicates the likelihood of travellers recommending a destination to friends, family, or colleagues. NPS is based on responses to the question, How likely are you to recommend [British Columbia] as a travel destination to a friend, family member, or colleague? Responses are scored from 0 = “not at all likely” to 10 = “extremely likely.” Respondents are divided into three categories:

• Detractors (scores of 0 to 6): Unhappy visitors, unlikely to tell others to visit and might even damage the reputation of a destination through negative word of mouth
• Passives (scores of 7 or 8): Marginally satisfied visitors not excited enough to tell others about their travel experience
• Promoters (scores of 9 or 10): Loyal enthusiasts likely to return and rave about their travel experience

NPS is calculated by subtracting the percentage of detractors from the percentage of promoters: NPS = % of detractors — % of supporters. The intention to recommend a travel destination, reported by the NPS, is a proxy measure of overall satisfaction with the travel experience. Satisfaction with the travel experience and the intention to recommend greatly increase the likelihood of a return visit to British Columbia. And word-of-mouth advocacy, either face-to-face or through social media, is critical for attracting first-time visitors to British Columbia.

Destination BC uses NPS as a performance measurement tool (among others) to help determine the overall effectiveness of online and integrated marketing communications strategies (Destination BC, 2013). Furthermore, Destination BC has developed the Remarkable Experiences program to “enable tourism operators to become experts in areas such as service design and digital marketing” (Destination BC, 2014).

Effective planning, research, customer understanding, integrated marketing communications, and using online customer service strategies to support effective marketing are fundamental requirements for successful services marketing. However, it is critical that marketers understand the key trends and issues that will help to identify tomorrow’s marketing strategies (Government of Canada, 2013).

Trends and Issues

Figure 8.14 Social media trends are just one of the influences that marketers need to monitor.

Tourism marketers in BC need to monitor trends in the following areas that may impact the success of their marketing efforts:

• Demographic shifts (aging population, the rise of millennials), and socioeconomics (cultural changes, economic decline/growth)
• Political, economic, and geographic changes (emerging or declining economies)
• Trip purpose (growth of multipurpose trips)
• Psychographic changes (special interests, healthy lifestyles, sustainability)
• Behavioural adaptations (free independent travel, decreasing brand loyalty)
• Product-related trends (emerging niches)
• Distribution channels (online travel agencies, virtual travel)

Remaining abreast of information in these areas is critical to the success of any services marketing plan, which should be continually monitored and adapted as the landscape changes.

Conclusion

Effective services marketing in the tourism and hospitality sector requires marketers to gain a solid understanding of the differences between the marketing of goods and services. Successful organizations use market research to learn the preferences and behaviours of key customer segments. Through a strategic planning process, organizations and destinations develop a marketing orientation designed to identify customer needs and trigger their wants, while striving to meet organizational objectives. Activities are designed to support integrated marketing communications across multiple platforms with reciprocal communications — that is, not just broadcasting information, but having conversations with customers. Savvy marketers will leverage these conversations to keep up with evolving customer interests while seeking an understanding of emerging trends in order to anticipate needs and wants. Engaged marketers also know that social media and integrated marketing communications must be complemented with remarkable customer service, which ultimately supports successful marketing strategy.

Chapter 9 will delve further into the components of delivering exceptional customer service as a key component of industry success.

References

Aboriginal Travel Services. (2015). Aboriginal Travel Services. Retrieved from www.aboriginaltravelservices.com

Anderson, C. (2012). The impact of social media on lodging performance. Retrieved from www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-16421.html

BC Ferries Services. (2015). BC Ferries vacations. Retrieved from: www.bcferriesvacations.com

British Columbia Ministry of Jobs, Tourism and Innovation. (2011). Gaining the edge: A five year strategy for tourism in British Columbia. [PDF] Retrieved from: www.jtst.gov.bc.ca/tourismstrategy/documents/mjti_tourismstrategyreport_fnl.pdf

Canadian Tourism Commission. (2008). The explorer quotient: A deeper understanding of the modern traveller. [PDF] Retrieved from: www.ttracanada.ca/sites/default/files/uploads/ctc._the_explorer_quotient_-_a_deeper_understanding_of_the_m.pdf

Canadian Tourism Commission. (2012). EQ profiles. [PDF] Retrieved from: https://en-corporate.canada.travel/sites/default/files/pdf/Resources/ctc_eq_profiles_2012-eng-lowres.pdf

Davis, K. (2013, July 17). A (kind of) brief history of marketing (infographic). Entrepreneur. Retrieved from www.entrepreneur.com/article/227438

Deloitte. (2015). Hospitality 2015 game changers or spectators? Retrieved from www2.deloitte.com/ie/en/pages/consumer-business/articles/hospitality-2015.html

Destination BC. (n.d.). About us. Retrieved from: www.destinationbc.ca/About-Us.aspx

Destination BC. (2013). Net promoter score. Retrieved from: www.destinationbc.ca/Resources/Monitoring-and-Evaluation/Net-Promoter-Score.aspx#.VOZd1_nF9Z9

Destination BC. (2014). Remarkable experiences program. Retrieved from: http://strategy.destinationbc.ca/how-we-will-win/foster-remarkable-experiences/remarkable-experiences-program/

Eliason, K. (2014, December 23). The importance of integrated marketing communications. Retrieved from www.portent.com/blog/internet-marketing/raining-marketing-importance-integrated-marketing-communications.htm

Government of Canada. (2013). FedNor: A guide to using market research and marketing measurement for successful tourism destination marketing. Retrieved from:
http://fednor.gc.ca/eic/site/fednor-fednor.nsf/eng/fn03327.html

Kollat, D., Blackwell, R., & Engel, J. (1972). The current status of consumer behavior research: Developments during the 1968-1972 period. Proceedings of the Third Annual Conference of the Association for Consumer Research. Chicago, IL : Association for Consumer Research, pp. 576-585.

Luca, M. (2011, September 16). Reviews, reputation, and revenue: The case of Yelp.com. [PDF] Retrieved from www.hbs.edu/faculty/Publication%20Files/12-016_0464f20e-35b2-492e-a328-fb14a325f718.pdf

Morrison, A. M. (2010). Hospitality & travel marketing (4th ed., international ed.). Clifton Park, NY: Delmar Cengage Learning.

Nielsen. (2012, April 10). Global consumers’ trust in ‘earned’ advertising grows in importance. Retrieved from www.nielsen.com/us/en/press-room/2012/nielsen-global-consumers-trust-in-earned-advertising-grows.html

PR Newswire. (2011, January 11). Smart phones, social media and local search create marketing mojo in the travel industry, new report says. Retrieved from www.prnewswire.com/news-releases/smart-phones-social-media-and-local-search-create-marketing-mojo-in-the-travel-industry-new-report-says-113262519.html

Tofino Saltwater Classic. (2014). Tofino saltwater classic. Retrieved from www.tofinosaltwaterclassic.com

Tourism Victoria. (2015). Visitors centre. Retrieved from: www.tourismvictoria.com/plan/visitor-centre

Wickaninnish Inn. (2015). Elopement wedding packages. Retrieved from www.wickinn.com/package-type/elopement

Wolak, R., Kalafatis, S., & Harris, P. (1998). An investigation into four characteristics of services. [PDF] Journal of Empirical Generalisations in Marketing Science, 3, 22-43. Retrieved from http://members.byronsharp.com/empgens/emp1.pdf

WorldHost Training Services. (2013). Remarkable service in the age of social media. 
Retrieved from: www.worldhosttraining.com/elearning/

Attributions

Figure 8.1  Vintage Ad #1,203: This Cheap Hotel Does Not Compute by Jamie is used under a CC BY 2.0 license.

Figure 8.2  1970s Advertising – Poster – Peter Max Don’t Smoke Cigarettes (USA) by Daniel Anyes Arroyo is used under a CC BY-NC 2.0 license.

Figure 8.3  British Columbia Parliament Christmas Lights by James Wheeler is used under a CC BY-NC-SA 2.0 license.

Figure 8.4  Empty Flight by Rex Roof is used under a CC BY 2.0 license.

Figure 8.5  Services Marketing Triangle by LinkBC is used under a CC BY-NC-SA 2.0 license.

Figure 8.6  Pacific Centre igloo by Janis Behan is used under a CC BY-NC-SA 2.0 license.

Figure 8.7  Army Photography Contest – 2007 – FMWRC – Arts and Crafts – Eye of the Holder by US Army is used under a CC BY 2.0 license.

Figure 8.8  BC Tourism Vending Machine by davitydave is used under a CC BY 2.0 license.

Figure 8.9  Precious Treasure by Dave Sutherland is used under a CC BY-NC-SA 2.0 license.

Figure 8.10  Victoria’s Inner Harbour at Night 2012 by Gord McKenna is used under a CC BY-NC-ND 2.0 license.

Figure 8.11  Out of Home Advertising for Grouse Mountain by LinkBC is used under a CC BY 2.0 license.

Figure 8.12  Fairmont Empress and Helijet Partnership by LinkBC is used under a CC BY 2.0 license.

Figure 8.13  Wreath makin’ – an unhappy customer (pas moi) by Katy is used under a CC BY-NC-ND 2.0 license.

Figure 8.14  Twitter escultura de arena by Rosaura Ochoa is used under a CC BY 2.0 license.

Long Descriptions

Figure 8.1 long description: A man holds up a calculator looking confused. He says, “Are you kidding me? A big double bed, television, air conditioning, and only $12.95 a night? It doesn’t compute.” [Return to Figure 8.1]

Figure 8.5 long description: Internal marketing is used between the company and its employees. External marketing is used between the company and its customers. Interactive marketing is used between the employees and the customers. [Return to Figure 8.5]

Ray Freeman and Kelley Glazer

Overview

In the tourism and hospitality industry, the success or failure of our businesses and destinations depends on service. Some, however, deliver consistently higher levels of customer service. Why and how are they able to do this? This chapter will try to answer these questions as we explore the fundamentals of customer service in the context of a competitive global tourism environment.

Figure 9.1 A family checks in at a hotel where they’re provided with an engaging customer service experience

Customer Service as Part of BC’s Tourism Marketing Plan

Many credit Expo 86, and the training that began the previous year under the SuperHost banner, with bringing this important topic to the forefront of BC’s tourism industry.

Customer service remains an integral part of delivering on BC’s tourism marketing promises to our guests. Destination BC recently launched its Remarkable Experiences program, intended to differentiate the province as a destination in a global market filled with competitors. Successful execution of this strategy will depend on how well employers and their staff provide quality customer service, focusing on the importance of the “human element” in the visitor experience (Destination BC, 2014). And across the country, the Canadian Tourism Commission (CTC) is encouraging the development of Canadian Signature Experiences, made all the more memorable because of the high-quality guest interactions they emphasize (Canadian Tourism Commission, n.d.).

A Key Issue for Employers

Figure 9.2 Great customer service takes place across many platforms and is critical for tourism and hospitality employers.

In a 2010 Tourism Vancouver Island training and education needs assessment survey, employers and managers indicated that customer service skills were one of the most significant issues (Tourism Vancouver Island, 2010). Employers and human resources managers were most concerned with employee skills and training related to personal development, tourism/hospitality knowledge, computer and communication skills, leadership/management skills, and customer service skills and attitudes.

A similar finding emerged from a 2014 LinkBC roundtable discussion held between tourism and hospitality educators and industry professionals. One of the main topics raised by employers was the need for new tourism professionals to learn customer service skills and to continue to hone these over time. In all groups, across all sectors, many students and graduates were found lacking in these skills (LinkBC, 2014).

For this reason, an entire chapter has been dedicated to exploring customer service issues, including quality of customer service, key challenges and benefits to employers and employees, the concept of customer orientation, and ways to recover when service interactions go wrong.

Quality of Customer Service

Figure 9.3 Service encounters can start before a guest enters a business. Does this sign send the right message? [Long Description]

Quality customer service is an experience of feeling valued or heard. Sometimes it’s an intangible component of why a guest may prefer one tourism or hospitality provider over another. There is something about quality customer service that you often can’t put your finger on — but you know it’s there. And it’s a critical factor for tourism success, both as a means of satisfying ever-increasing customer expectations, and as a way to achieve business profitability (Erdly & Kesterson-Townes, 2002).

In 2012, Cornell Hospitality presented a report from PKF Hospitality Research that showed guest satisfaction is heavily influenced by service factors such as employee attitude and the pacing and order of services provided. It found that the greater the client satisfaction, the higher the revenues for a given hospitality business, and that service plays a far greater role than price and location in the guest-purchase decision (Cornell Hospitality Research, 2012).

Training is critical to ensuring quality service and meeting these objectives (Brown et al., 2009). On a global scale, Canada ranks high in human resources capabilities. Unfortunately, due to the seasonal nature of many tourism and hospitality positions, and limited access to affordable and accessible training, the industry isn’t always able to take advantage of this position (Blanke & Chiesa, 2009), as it can be difficult to attract, train, and retain reliable and qualified staff year-round.

The concept of total quality (TQ) refers to an approach by businesses to integrate all employees, from management to front-level, in a process of continuous learning, with a goal of increasing customer satisfaction. It involves examining all encounters and points of interaction with guests to identify points of improvement. Total quality management (TQM) in tourism and hospitality is a process where service expectations are created by the entire team, with a collaborative approach between management and employees (Kapiki, 2012).

Key Challenges and Benefits to Employers

Many employers struggle to justify the time and expense associated with training, particularly in a seasonal workplace or environment with high staff turnover (Saunders, 2009). In fact, many of the benefits of training are intangible and therefore difficult to measure, although there is evidence that the return-on-investment of training is quite high. For example, employee competence and job satisfaction are not always easily assessed, but can improve productivity and organizational profitability.

Employers do need to understand the positive impacts of training on their bottom line. Key benefits may include improved employee attraction/recruitment, retention, engagement, and innovation. Saunders (2009) suggests that to be most effective, training should be oriented to develop employee potential versus addressing deficiencies.

Benefits to Employees

Figure 9.4 A waitress sings and staff entertain to celebrate a customer birthday at a café. The guests were so thrilled they shared the photo online.

Customer service training provides employees with a foundation for effective service delivery. Potential benefits of this training may include improved skills and attitudes; better communication skills; better understanding of workplace practices; increased morale, confidence, self-satisfaction, and work satisfaction; increased participation; greater job/career advancement potential; greater interest in and willingness to participate in further training; and more independence (Grey, 2006).

As employees acquire certifications and credentials, and these are recognized by employers, both groups benefit. Employees have a tangible way of demonstrating mastery of service knowledge and skills, and employers have tools to assist with the recruitment and screening of potential staff.

According to Kim (2008), customer-oriented interactions between consumers and tourism employees influence the quality of the tourism experience. Let’s take a closer look at the concept of customer orientation and what this means in today’s tourism businesses.

Customer Orientation

Figure 9.5 An American Airlines ad from 1954 shows that, in tourism and hospitality, service has always been paramount.

Kim defines customer orientation “as the set of activities, behaviours, and beliefs that place high priority on customers’ interests and continuously create superior customer value” (2008, p. 195). Even when employees have positive attributes, it may not be enough to ensure positive customer engagements unless they are specifically trained toward customer orientation (Kim, 2008).

Customer Service and Competition: The Customer-Oriented Organization

According to Masberg and colleagues, “to the customer, only service may distinguish a business from its competition” (Masberg, Chase, & Madlem, 2003, p. 19). While specific customer service jobs require different skills, building an overall customer-oriented organization may better meet customer expectations. One way to ensure quality service may be to encourage tourism and hospitality professionals to acquire industry certifications. Businesses can also choose to implement tools to determine customer satisfactions levels, such as the SERVQUAL technique that compares customer perceptions of quality against customer expectations (Morrison, 2010). Under the SERVQUAL model, the five dimensions of service are:

1. Reliability: where the quality and level of service is consistent
2. Assurance: knowledge and courtesy of staff and their ability to convey trust and confidence
3. Tangibles: the organization’s physical facilities, equipment, and appearance of staff
4. Empathy: the degree of caring, individualized attention that the organization’s staff provide to its customers
5. Responsiveness: the willingness of staff to help customers and provide prompt service

You can remember these five dimensions by using the acronym RATER. When these dimensions are consistently met, a company is well on its way to becoming customer oriented.

So far we’ve explored the reasons good customer service is critical to our industry. And with the acronym RATER, we now understand the basics of what a customer might expect from an organization. Together, these concepts can form part of a customer relationship management (CRM) strategy for tourism and hospitality businesses. CRMs are tools used by businesses to select customers and maintain relationships with them to increase their lifetime value to the business.

There are a number of points in time where this relationship is maintained. For example:

• The first time potential guests visit a website and leave their email address to receive more information
• The moment a reservation is made and the company captures their personal details
• The in-person service encounters from the front desk to the parking lot
• Welcome notes, personalized menus, friendly hellos, and other touches throughout the interaction
• Background messages including clean facilities and equipment in good repair, pleasant decor and ambiance (flowers, etc.)
• Follow-up communications like a newsletter
• Further interactions on social media

All of these touch points are opportunities to maintain strong relationships with customers and to increase the likelihood of positive word of mouth sharing.

Let’s take a closer look at one tool that tourism and hospitality businesses are increasingly using as part of their CRM strategies: rewarding customer loyalty.

Loyalty and Customer Relationships

Figure 9.6 Customer loyalty cards are very common in the food and beverage sector.

With competition between tourism destinations and businesses continuing to grow, organizations are increasingly focusing on retaining existing customers, which is often less expensive than attracting new ones. This focus forces tourism businesses to look at the customer relationship over the long term, or the customer lifetime value (CLV) cycle, rather than at single transactions only.

It has been proven that it is much less expensive for a company to retain an existing customer than acquire a new one (Beaujean, Davidson & Madge, 2006). Ultimately, successful organizations will strive to build a base of loyal customers who will provide repeat business and may influence other potential customers. Building positive relationships with loyal customers requires planning and diligence for all customer touch points. This may include (Lovelock & Wirtz, 2007):

1. Managing service encounters: training staff to provide personal service to customers
2. Providing customer incentives: inducing customers to frequent the business
3. Providing special service options: offering enhanced services or extra offerings to loyal customers
4. Developing pricing strategies to encourage long-term use: offering repeat customers special prices or rates
5. Maintaining a customer database: keeping an up-to-date set of records on customer purchase history, preferences, demographics, and so on.
6. Communicating with customers: reaching individual customers through direct or specialized media, using non-mass media approaches

Loyalty programs pull together several of these elements to help a business identify, maintain contact with, and reward frequent customers.

Examples of Outstanding Service

If one uses the definition of quality in service as “meeting or exceeding customer expectations” (Kapiki, 2012), then the following examples certainly fit the description. These embody a concept known as a moment of truth (Beaujean, Davidson & Madge, 2006) when a customer’s interaction with a front-line employee makes a critical difference in his or her perception of that company or destination. The characteristics of employees that are best able to create these moments include self-empowerment and self-regulation, a positive outlook, awareness of their feelings and the feelings of others, and the ability to curb fear and anxiety while being able to access a desire to help others. These past winners of the WorldHost customer service award demonstrate this concept in action (WorldHost, n.d.):

Tamara Turcotte of the Sidney Airport Travelodge was nominated after she came into work on her day off after hearing that hundreds of travellers had been stranded after a bomb threat led to the cancellation of ferry trips from nearby Swartz Bay. Reporting for duty, she helped coordinate accommodations for these travellers, looking beyond the hotel (which was full) to the homes of coworkers and friends. Her compassion and swift actions helped turn a negative experience for these guests into a moment of truth about visiting British Columbia.

Agazzi Abbay received word that JetsGo, a small airline and his employer, had suddenly gone out of business, and he was out of a job. Concerned for the passengers that would be stranded by this abrupt end for the airline, he went to the airport to give them the opportunity to share their frustration. Even though he was unable to help their situation, he was able to demonstrate empathy and provide a listening ear as the only former JetsGo employee available across Canada.

Andrea Chan, a guest services supervisor at the Holiday Inn and Suites in Vancouver, received a call from a hotel guest who said she was ill. Concerned because the caller sounded disoriented, Andrea recommended a visit to the hospital. To be sure her guest was safe, Andrea accompanied her to the emergency room and stayed with her until her health and safety were assured — working well beyond the hours of her shift, and returning home the next morning. By treating every guest like family, Andrea created a lasting impression about Holiday Inn and its customer service values.

Of course, it’s not possible for every customer encounter to be positive. Let’s look at what happens when a customer encounter does not go well, and what can be done about it.

Recovery from Service Failures

Figure 9.7 Handle customer complaints before guests take them online.

If a business fails to meet customer expectations, there’s a risk the customer will tell others about it, often through social media networks. An on-location problem that turns into an online complaint, going from private to public, can become far more damaging to business than the original issue. To avoid any problem from escalating, organizations and staff must work hard to resolve issues before the customer walks out the door — or pulls out a smartphone to make an online posting.

Of course, it’s not always possible to resolve issues on the spot. A customer’s expectations may go beyond the service the business is able to provide, or staff might not be authorized by management to provide the means necessary to resolve the complaint. In these cases, staff must still step up as service professionals, realizing that the actions they take when faced with a complaint can have a significant impact.

Online complaints highlight this point; reviewers are often more upset about how a problem was handled than about the problem itself. As well, potential guests who read online complaints are looking for reassurance that the same thing won’t happen to them. If they don’t find it, they may dismiss the business as an option and move on. How a business handles complaints, face-to-face and online, is critical to ensuring successful recovery from service failures.

Service recovery occurs when a customer service professional takes action that results in the customer being satisfied after a service failure has occurred. Often service failures are not the fault of front-line staff, and at times, may not even be the fault of the business. Failure may be the result of an error made by another employee, by the guest him- or herself, or by a technical error. Regardless of where the problem originated, when customers bring it to the attention of the staff, they have certain expectations for resolution.

Figure 9.8 Listen, understand, act: the building blocks for resolving disputes

Disappointed customers often want:

• An empathetic ear. Sometimes they simply want to vent. They want to know that the employee or manager is listening and cares.
• An apology. In some cases a sincere apology is enough.
• A solution. Typically customers bring issues to the attention of staff because they want them fixed.
• Compensation. Upset customers are looking for compensation, but not always.
• Follow-up. For some people, it’s important to know that their concerns are brought to the attention of management and are fixed for future customers.
• Reassurance. Customers want to know they’re in good hands.

Skilled service recovery is especially important in the age of social media. Customers who are active on social networks are likely to be equally vocal about their satisfaction with service recovery when a problem is expertly handled as they are with their displeasure when they are disappointed with service (WorldHost Training Services, 2013).

While service recovery is a critical skill, all tourism and hospitality professionals should approach each encounter with the goal of providing remarkable service. The next section explores how this is accomplished.

Exceeding Expectations with Remarkable Service

Figure 9.9 British Columbia set the bar high when it welcomed the world to the 2010 Winter Olympic Games.

We’ve discussed the basic ingredients of meeting customer expectations. However, for a business to be successful, it’s important to not only meet, but exceed, expectations. Remarkable service doesn’t necessarily require a great deal of cost, time, or resources. Often it’s the little details, the special attention from employees and the personalized touches that people remember most. There is no formula for remarkable service. It will depend on the type of customers, the nature of their visit, and the things they value. Finding ways to provide remarkable service requires support from management, keen observation skills, and a willingness to “go the extra mile” (Destination BC, 2013).

Providing good service is about understanding, recognizing, and anticipating the needs of customers and working hard to meet or exceed them. The core service essentials are also simple: make eye contact, smile, greet warmly, and use the customer’s name. These simple actions tell customers that your organization values them and is eager to help. In order to exceed expectations, your organization must be on the alert for opportunities to provide remarkable service (WorldHost Training Services, 2013).

The Role of Service and Social Media in Customer Satisfaction

Figure 9.10 A customer reviews a hotel, and the general manager responds to address his concerns. [Long Description]

While the basics of great service haven’t changed, social media and networking have raised the stakes in the service industry. The cost of a negative experience is higher — but so is the value of a positive experience. In fact, the opportunities of social media reviews and ratings far outweigh the risks.

Businesses that take time to “listen” to social media are going to be more successful at leveraging the power of online interactions. These companies effectively read review sites such as TripAdvisor, Yelp, and others and respond to guest comments both good and bad.

Many factors contribute to how people rate businesses, including value, quality, and convenience. More than anything, however, service influences customer impressions. Whereas a lapse in quality or convenience can be overcome with excellent service, it is especially challenging to overcome the effects of bad service.

Now that we have a deeper understanding of the fundamentals of customer service, maintaining positive relationships with our guests and aiming to exceed their expectations, let’s look at some organizations that support the training and development of the industry.

Tourism and Hospitality Human Resource Support

A number of organizations support the training, development, and credentialling of tourism and hospitality professionals at both the national and provincial level.

Figure 9.11 British Columbia’s tourism industry has come a long way since Expo 86, delivering great service to visitors from near and far.

Human Resource Councils

At the national level, the Canadian Tourism Human Resource Council (CTHRC), a national sector council, is responsible for best practice research, training, and other professional development support on behalf of the 174,000 tourism businesses and the 1.75 million people employed in tourism-related occupations across the country. Provincially, the organization go2HR serves to educate employers on attracting, training, and retaining employees, as well as hosts a tourism job board to match prospective employees with job options in tourism around the province.

Training Providers

Throughout this textbook, you’ll see examples of not-for-profit industry associations providing training and certification for industry professionals. For example, the former Canadian Institute of Travel Counsellors (CITC) is now hosted by the Association of Canadian Travel Agents and continues to offer a full-time and distance program to train for the occupation of Certified Travel Counsellor. Closer to home, WorldHost Training Services, a division of Destination BC, offers world-class customer service training.

Educational Institutions

British Columbia is home to a number of high-quality public and private colleges and universities that offer tourism-related educational options. Training options include certificates, diplomas, and degrees in adventure tourism, outdoor recreation, hospitality management, and tourism management. Whether students are learning how to manage a restaurant, gaining mountain adventure skills, or exploring the world of outdoor recreation and tourism management, tomorrow’s workforce is being prepared by skilled instructors with solid industry experience.

Through these educational opportunities, tourism professionals can earn a range of credentials and certifications that not only boost their confidence, but have proven benefits to employers seeking fresh ideas and potential leaders for their organizations.

Conclusion

Figure 9.12 A satisfied customer shares the news on his mobile device

BC tourism and hospitality employers named customer service as the most beneficial training topic in a number of surveys. These skills are integral to customer satisfaction, employee engagement, organizational performance, and a destination’s competitive position (Freeman, 2011; Tourism Vancouver Island, 2010).

Employers can either commit to creating a learning organization or undermine their business depending on their investment (or lack thereof) in training. Essentially, employers get out of training what they put into it, often by attracting and retaining better, more motivated employees. Ultimately, this investment results in a better customer experience with improved levels of customer loyalty and organizational profitability. Prudent employees seek employers who value investment in training.

We know there are a variety of ways to ensure quality of service and recover when things go wrong. A key factor of success is understanding that customers want to be listened to — they would like an apology, a solution, at times compensation, and often follow-up and reassurance. And when a complaint is expertly handled, the customer can be converted from a potential social media detractor to a loyal advocate for the business.

From the first wave of training that prepared BC to host Expo 86, to communities and businesses participating in WorldHost workshops today, tourism in our province is only as strong as the front-line employees that deliver experiences to guests.

Another key component in BC’s ability to compete as a tourism destination is its reputation for healthy wildlife, wild viewscapes, and pristine resources. Chapter 10 highlights the important role the tourism industry can play in either preserving, or damaging, our natural assets.

References

Beaujean, M., J. Davidson, & Madge, S. (2006). The ‘moment of truth’ in customer service. Retrieved from www.mckinsey.com/insights/organization/the_moment_of_truth_in_customer_service

Blanke, J. & Chiesa, T. (Eds.). (2009). The Travel and tourism competitiveness report: Managing in a time of turbulence. World Economic Forum, Davos, p. 525. Retrieved from: www.weforum.org/reports/global-competitiveness-report-2009-2010

Brown, J., Elliott, S., Christensen-Hughes, J., Lyons, S., Mann, S., & Zdaniuk, A. (2009).Using human resource management (HRM) practices to improve productivity in the Canadian tourism sector. Department of Business, University of Guelph, Canadian Tourism Human Resource Council. Retrieved from
http://cthrc.ca/~/media/Files/CTHRC/Home/research_publications/productivity/HRM_Practices_Improve_ProductivitySept_EN.ashx

Canadian Tourism Commission (CTC). (n.d). Canadian Signature Experiences. Retrieved from http://en-corporate.canada.travel/resources-industry/canadian_signature_experiences

Cornell Hospitality Research. (2012). Summit 2012: Building service excellence for customer satisfaction. Retrieved from www.hotelschool.cornell.edu/research/chr/pubs/roundtableproceedings/roundtable-17003.html

Destination BC. (2013) Remarkable service in the age of social media (video). WorldHost Training Services. Retrieved from www.youtube.com/watch?v=2q471_ano2E&feature=em-share_video_user

Destination BC. (2014) Remarkable experiences program. Retrieved from: http://strategy.destinationbc.ca/how-we-will-win/foster-remarkable-experiences/remarkable-experiences-program/

Erdly, M. & Kesterson-Townes, L. (2002). Experience rules, IBM Business Consulting Services’ vision for the hospitality and leisure industry. IBM Business Consulting Services.

Freeman, R. (2011). Vancouver Island and the Sunshine Coast tourism and hospitality sector customer service training and needs assessment report. Nanaimo, BC: Vancouver Island University.

Grey, A. (2006). Upskilling through foundation skills: A literature review. [PDF] Report prepared for the Department of Labour. New Zealand. Retrieved from www.dol.govt.nz/PDFs/upskilling-through-foundation-skills.pdf

Kapiki, S. (2012) Quality management in tourism and hospitality: An exploratory study among tourism stakeholders. Retrieved from www.academia.edu/1160667/Quality_Management_in_Tourism_and_Hospitality_an_Exploratory_Study_among_Tourism_Stakeholders

Kim B. (2008). Mediated effects of customer orientation on customer relationship management performance. International Journal of Hospitality & Tourism Administration, 9(2), 192-218.

LinkBC. (2014). LinkBC roundtable 2014: Dialogue cafe. [PDF] Retrieved from http://linkbc.ca/siteFiles/85/files/2014RoundtableDialogueCafeReport.pdf

Lovelock, C. & Wirtz, J. (2007). Services marketing: People, technology, strategy [PDF] (6th ed.). Upper Saddle River, NJ: Pearson Prentice Hall. Retrieved from http://bschool.nus.edu.sg/Departments/Marketing/Jochen%20papers/sm6coverloyalty.pdf

Masberg, B., Chase, D., & Madlem, M. (2003). A Delphi study of tourism training and education needs in Washington State. Journal of Human Resources in Hospitality & Tourism, 2(2), 1. doi:10.1300/J171v02n02•01.

Morrison, A. M. (2010).  Hospitality & travel marketing (4th ed., International ed.).  Clifton Park, NY: Delmar Cengage Learning.

Saunders, R. (2009). Employer investment in workplace learning [PDF]. Canadian Policy Research Networks. Retrieved from www.ccl-cca.ca/pdfs/WLKC/EmployerTrainingInvestment_FinalSynthesisReport_EN.pdf

Service Skills Australia. (2015). About. Retrieved from www.serviceskills.com.au/about

Tourism Vancouver Island (TAVI). (2010). 2010 Training and needs assessment survey [PDF]. Retrieved from: www.tourismvi.ca/research/pdf/2010-Training-and-Education-Needs-Assessment-Survey.pdf

WorldHost Training Services. (n.d.). WorldHost: Hall of fame. Retrieved from www.worldhosttraining.com/halloffame/

WorldHost Training Services. (2013). Remarkable service in the age of social media. Retrieved from www.worldhosttraining.com/elearning/

Attributions

Figure 9.1 Family Checking In – WorldHost by LinkBC is used under a CC BY-NC-ND 2.0 license.

Figure 9.2 Woman on Headset – WorldHost by LinkBC is used under a CC BY-NC-ND 2.0 license.  

Figure 9.3 huh? by Liz is used under a CC BY-NC 2.0 license.

Figure 9.4 Happy Birthday from Mom by Peter Lee is used under a CC BY-NC 2.0 license.  

Figure 9.5 1954- Service by James Vaughan is used under a CC BY-NC-SA 2.0 license.

Figure 9.6 new currency by Roy is used under a CC BY-NC-SA 2.0 license. 

Figure 9.7 Complaints button by SEO is used under a CC BY SA 2.0 license.  

Figure 9.8 Listen, Understand, Act by Stephen Shorrock is used under a CC BY-NC-SA 2.0 license.

Figure 9.9 Welcome to Vancouver 2010 by roaming-the-planet is used under a CC BY-NC-ND 2.0 license.  

Figure 9.10 Accent Inns Online Review by LinkBC is used under a CC BY 2.0 license. 

Figure 9.11 Man on Blackberry – WorldHost by LinkBC is used under a CC BY-NC-ND 2.0 license.

Long Descriptions

Figure 9.3 long description: A sign saying, “Tim Hortons customers only. 20 minute limit. No loitering. Customers must be in the store or in their vehicle. All others will be removed at owners risk and expense. [Return to Figure 9.3]

Figure 9.10 long description: A customer gives a fairly positive review but comments on the older furniture. The manager thanks him for his review and adds that they will be updating the furniture and hopes he will stay again. [Return to Figure 9.10]

Don Webster

Overview

Figure 10.1 A foraging black bear is photographed by a tourist on a wildlife viewing trip. Protecting BC’s natural assets is paramount to maintaining the province’s tourism product.

One of the main reasons people travel is to visit areas that are unspoiled, natural, beautiful, or unique in terms of their local environment. Unfortunately, through our actions either as tourism businesses or as visitors, we risk damaging the natural environments we depend on (Hardin, 1968; Williams & Ponsford, 2008). For this reason, environmental stewardship in tourism is of paramount importance.

Environmental stewardship can be defined as “the responsible use (including conservation) of natural resources in a way that takes full and balanced account of the interests of society, future generations, and other species, as well as of private needs, and accepts significant answerability to society” (Worrell & Appleby, 2000, p. 263).

This chapter explores the concept of environmental stewardship, the impacts of tourism on the natural environment (and vice versa), and ways we can minimize these impacts.

History of Environmental Stewardship

The topic of stewardship entered public consciousness in the middle of the last century in the works of writers such as Aldo Leopard (A Sand Country Almanac), Garret Hardin (The Tragedy of the Commons), and Rachel Carson (Silent Spring). Building on this growing consciousness, the concept of sustainability and sustainable development was introduced.

One of the first commonly accepted definitions of sustainable development came from the World Commission on Environment and Development, later renamed the Brundtland Commission. It defined sustainable development as meeting “the needs of the present without compromising the ability of future generations to meet their own needs” (Brundtland, 1987, p. 41). Sustainable development differs from environmental stewardship in that it may include aspects of social, economic and environmental sustainability, whereas environmental stewardship focuses solely on the natural world.

A related concept is environmental management, where the natural resources of the environment are managed through policies designed to protect natural values while providing a framework for use. In tourism, this management may be the responsibility of many groups including individual operators, tourism industry organizations, non-governmental organizations, or government agencies (Mercer, 2004; Williams & Ponsford, 2008).

Figure 10.2 Delegates at the 2009 United Nations Conference on Climate Change in Copenhagen

The Need for Change

Experts around the world agree that the need for stewardship has never been greater, as there exists overwhelming evidence that the environment is being irrevocably damaged by human actions. Climate change caused by increased greenhouse gas emissions (World Tourism Organization, 2008a) and the loss of biodiversity due to declining habitat loss are just two compelling issues.

Tourism continues to grow globally, and many tourists are in pursuit of pristine, natural environments. Development of tourism products results in increased urbanization, overuse, exceeding carrying capacity, and contamination of natural resources (Williams & Ponsford, 2008). Later in this chapter, we’ll provide several examples of specific tourism and hospitality impacts and approaches to mitigating them.

There is one issue that takes precedence over all others: climate change. The next section focuses specifically on this critical global issue and its relationship to the tourism industry.

Tourism and Climate Change

Figure 10.3 Helms Glacier melting

The Intergovernmental Panel on Climate Change (IPCC) concluded the “observed increase in global average temperatures since the mid-20th century is very likely (> 90% probability) the result of human activities that are increasing greenhouse gas concentrations in the atmosphere” (World Tourism Organization, 2008a, p. 38). Climate change should be considered to be one of the most important challenges currently facing the tourism industry.

Impacts of Climate Change

According to the World Tourism Organization, impacts from climate change on tourism include (2008a):

Direct climate impacts are changes that occur as a result of warming trends, cooling trends, or extreme weather events. Examples include a lack of snow to operate mountain resorts, melting glaciers in mountainous regions, and floods, landslides, and wildfires that could affect tourist areas.

Figure 10.4 The aftermath of Hurricane Sandy, which destroyed large sections of coastline in New York and New Jersey, including popular tourist attraction Coney Island (seen in the distance)

Indirect environmental change impacts are the byproducts of climate change. Global temperature changes may create water shortages, a loss of biodiversity, impacts to landscape aesthetics, and damage to infrastructure through extreme weather events. Examples in tourism include the inability to maintain resort facilities in desert environments due to water shortages, erosion of tropical atolls from rising sea levels, extinction of valuable wildlife species due to changes in habitat, and increased costs of maintaining infrastructure in the face of environmental change.

Impacts of mitigation policies on tourist mobility will become apparent as the tourism industry adjusts to environmental changes. Environmental impact mitigation strategies may create challenges for the long-term sustainability of the tourism industry. Tourism products may be offered over a shorter season, prices may increase due to a rise in operating costs, and there may be a shortage of pristine natural areas available for visits.

Indirect societal change impacts will slowly become apparent. Economic growth may be stunted in some areas and increase in others, creating societal inequality between nations. Political instability may arise in areas that are facing drastic environmental impact. All these changes will present new challenges to the industry and may threaten the long-term security of the industry (Watson, Zinyowera, & Moss, 1997; World Tourism Organization, 2008a).

Table 10.1 provides a detailed list of these impacts and their implications for tourism, as compiled by the World Tourism Organization.

To understand how we might begin to address these impacts and other environmental issues, it’s helpful to understand the fundamentals of environmental stewardship theory, which is explored in the next section.

Environmental Stewardship Theory

Some basic concepts of environmental management and ethics, especially as they apply to tourism, include carrying capacity, footprint, tragedy of the commons, and the tourism paradox.

Carrying Capacity

Carrying capacity is “the average maximum number of individuals of a given species that can occupy a particular habitat without permanently impairing the productive capacity of that habitat” (Rees, 2001, p. 229).

Figure 10.5 A tourist’s snapshot of a “full moon party” in Thailand, where bottles, trash, and human waste litter the beach for days afterward, and noise and light pollution are common

This concept has been applied to tourism in the context of a tourism carrying capacity (TCC), “the maximum number of visitors which an area can sustain without unacceptable deterioration of the physical environment and without considerably diminishing user satisfaction” (Salerno, Viviano, Manfredi, Caroli, Thankuri, & Tartari, 2013, p. 116).

There are many examples of TCC being applied in tourism globally. In Canada, national parks use the concept to ensure visitor numbers are restricted to a sustainable level. Studies of tourism in the Cayman Islands indicate this destination may soon be exceeding its TCC. Although TCC is a theoretical concept that is often discussed and utilized for analysis, in reality it can be challenging to restrict the numbers of tourists arriving at a destination.

Footprint

Ecological footprint is essentially a tool to analyze the impact of a population on Earth (Rees, 2001). The model calculates the total area of land and water resources used to support the population, presenting it in a manner that can be easily related to — usually in terms of the amount of land needed to support an individual at the standard of living that person is used to.

Typically, residents of industrialized, developed nations (such as Canada) require a larger land area to support their lifestyle than residents of developing nations, who have smaller ecological footprints due to lower consumption.

Tragedy of the Commons

Tragedy of the commons is an economic theory first proposed by Garrett Hardin in 1968, which states that if individuals are given the chance to overuse a common property, they will, in order to realize the maximum personal benefits. If every person does this, common property quickly becomes overused and damaged (Hardin, 1968).

For example, a group of tourism operators may look at a pristine natural area and see a chance for economic profit, and in the race for development, little or nothing is done to protect the area. If this unchecked development were to continue, the damage to the environment could reach a point where the elements that attracted tourists in the first place are irreversibly damaged, thus resulting in the “tragedy” that Hardin discusses (Hardin, 1968).

The tragedy of the commons leads to something known as the tourism paradox, a concept that describes the paradoxical nature of tourism’s relationship with the environment.

The Tourism Paradox

Figure 10.6 BC’s tourism assets centre heavily on scenery. Here is the Coastal Range and oceanfront are seen together from Neck Point Park near Nanaimo.

A common theme promoted by many tourism destinations is their location in some of the most ecologically fragile environments in existence — coastal, mountain, and river environments (Williams & Ponsford, 2008). Tourism requires these areas to be intact to serve as an attraction to visitors. Tourists expect a clean physical environment, appropriate seasonal conditions, and diversity of wildlife. Destinations failing to provide at least some of these elements risk losing their competitive edge in the global market; visitors will steer clear of polluted, barren landscapes with unpredictable or uncomfortable weather.

At the same time, the tourism industry is itself causing environmental damage through its own development in pristine areas, consumption of resources, and contribution to climate change. This is the paradox: as an industry, tourism both creates damage and suffers from it. That’s why it’s critical for the industry to be proactive about environmental sustainability in tourism; failing to do so may result in our downfall (Williams & Ponsford, 2008).

Before we gain a better understanding of the ways the tourism industry and individual operators can try to mitigate their impacts, let’s take a closer look at the overall management of BC’s environmental resources.

Environmental Management in BC

Environmental impacts in BC are managed by a variety of governmental organizations, primarily at the provincial or federal level. Each of these agencies has a role to play, from regulation of land access and resource extraction to environmental monitoring and cleanup. To understand how the impacts are managed, let’s review the basic categories of land use in BC.

Land Use

There are essentially four broad land categories in BC: private land, provincial Crown land, federal Crown land, and First Nations land.

Private land in BC is any land where private property rights apply. This includes residential, commercial, and agricultural zoned land throughout the province. If private property rights apply, the owner has more rights over that land for development and use than any other classification of land. Tourism companies wishing to operate on private property need to gain ownership of the land, or failing that, permission to operate on the land. Private property accounts for approximately 5% of the land mass in BC (Government of BC, 2011).

The term Crown land applies to any land that is owned by either the provincial or federal government. Provincial Crown land makes up 94% of BC, making it the largest category of land in the province. Provincial Crown land is available for a wide range of activities that encourage recreation and economic development, including tourism (Government of BC, 2011).

Figure 10.7 A BC Parks ranger conducts an interpretive program

Designated park areas are managed by BC Parks, the agency that reviews and issues permits for tourism companies to operate within a park. Other provincial Crown land is managed by a variety of government agencies, such as the Ministry of Forests, Lands, and Natural Resource Operations (MFLNR).

Federal Crown land is all land that is owned by the Government of Canada; in BC, less than 1% of the overall land is federal Crown land. It primarily consists of parks and protected areas that are managed by Parks Canada, the federal agency that has a mandate to preserve and share “natural and cultural heritage” and help ensure enjoyment and appreciation “for present and future generations” (Parks Canada, n.d.).

First Nations land includes any area where Aboriginal title has been established and responsibilities for management lie with the relevant First Nations group. Large areas of designated Crown land in BC are considered by First Nations groups as traditional, and these are currently going through the treaty negotiation process, which will likely result in a larger proportion of the BC land area coming under First Nations management.

Land Use for Tourism and Hospitality

Businesses and organizations wishing to use Crown land for economic development must apply and be approved for Crown land tenure, which is an agreement with the BC government to use the land for commercial purposes. Examples of the types of tourism operations that might seek tenure include mountain resorts, golf courses, backcountry lodges, tour operators, resort development, and marina construction. It’s estimated that about 16% of the tourism industry in BC depends on access to Crown land through the Crown land tenure program (Government of BC, 2010).

Different tenures are available depending on the type, location, and intensity of use proposed. A temporary permit grants use for approved activities for up to two years, but not exclusive use (other commercial operators may still use the area). A licence of occupation, the next level of tenure, provides for light development (e.g., semi-permanent structures or trails). This type of licence is typically issued for terms of five to 30 years and is renewable. A lease is a long-term contract for tenure, typically for 30 years. With a lease, operators can make substantial improvements to the land including significant structures such as lodges, restaurants, ski lifts, roads, and so on. It is the longest term and the most secure type of tenure (Government of BC, 2010).

Any tourism business wishing to operate on First Nations land requires permission from the local First Nations band. Companies wanting to operate in a national park also need to apply for a permit. Although resource extraction is restricted, national parks often encourage tourism development that is sustainable and appropriate for the local environment.

Environmental Protection and Assessment

Other elements of environmental stewardship in BC fall to the Ministry of Environment. This ministry has five divisions: Environmental Protection, Environmental Sustainability and Strategic Policy, Parks and Protected Areas, Climate Action Secretariat, and Conservation Officer Service. These divisions are responsible for environmental cleanup and spill response, climate change initiatives, protected areas management, and wildlife (British Columbia Ministry of Environment, n.d.a). This applies to all individuals and commercial enterprises in BC, including tourism.

Additionally, the Environmental Assessment Office plays an important role in environmental stewardship on Crown lands in BC. All major projects being proposed for development on Crown land must undergo an environmental assessment and have it approved by this office, which is a neutral agency set up specifically for this purpose. Projects are evaluated not only for their potential impacts on the environment, but also on their economic, social, cultural, and heritage aspects. Large-scale tourism projects such as mountain resorts are required to proceed through the environmental assessment process (Environmental Assessment Office, n.d.).

Figure 10.8 Logging sites visible from the air in Jervis Inlet

The current land management system in BC has led to numerous conflicts between tourism operators and resource extraction operations such as mining and forestry. Often, overlapping tenure is given to multiple companies with conflicting operational goals. Tourism operators typically require a clean environment, high-quality viewscapes, intact biodiversity, and an environment free of industrial scars. To maintain these values, any resource extraction needs to occur far from where tourism operators conduct their activities. In recent years, tensions have been building as access to wilderness areas becomes scarcer, with tourism values often falling second to resource extraction under the existing system (Webster, 2013).

The issues discussed above provide a framework for thinking about environmental management and the impacts of the tourism industry in BC. As part of the industry, we have an important responsibility to recognize impacts and take steps to reduce them. The next section addresses how we might do just that.

Mitigating Tourism and Hospitality Impacts

Figure 10.9 Moose tracks on Liard River in northern BC

In recent years in BC, the tourism industry has felt the impacts of climate change, habitat destruction, biodiversity loss, and increased conflicts over the use of natural areas. The winters of 2013/2014 and 2014/2015 were two of the warmest on record, and numerous low-elevation coastal mountain resorts were forced to close in the middle of the winter season (Hager, 2015). As well, the province is experiencing increased pressure on endangered wildlife species that draw tourists and residents alike. The death of an orca whale off the coast of Vancouver Island in late 2014 raised questions of water pollution and contamination (Theodore, 2014).

In the face of this negative environmental news, there are a variety of initiatives underway that have the potential to implement real change. These include:

• Carbon offsetting
• Energy conservation
• Water conservation
• Food production management
• Waste management
• Accreditation

This section explores these potential solutions.

Carbon Offsetting

Carbon offsetting is a standardized, regulated system that provides organizations with the ability to invest in green initiatives that will counterbalance their emissions, hence creating a carbon neutral situation (David Suzuki Foundation, 2009).

The concept of carbon offsetting stems from a recognition that despite a desire to entirely eliminate carbon emissions, sometimes doing so isn’t immediately feasible. Consequently, carbon offsetting has proven popular with tourism companies that can offset some or all of their emissions, either by themselves or by providing the opportunity for customers to do so. Examples are most commonly found in the transportation sector, where the reliance on traditional fossil fuels makes it challenging to completely eliminate carbon emissions.

Figure 10.10 A detail from the side of a Harbour Air seaplane

Take Harbour Air, for instance, a small BC airline. Since 2007, the company has completely offset all of the emissions produced by its airplanes by investing in energy-efficiency and fuel-switching projects in BC. The cost of the projects is passed on to passengers through a small levy added to the ticket price, and despite the cost increase, passenger traffic increased by 12% to 15% in the following year (Offsetters, n.d.).

Carbon offsetting isn’t just for the transportation sector, however. Tinhorn Creek Winery in Oliver has become a tourism destination for wine and culinary tourists and has some innovative conservation concepts. In addition to having an offsetting program, the winery runs its vehicles on biodiesel. It also holds virtual tastings with travel media over the web (media obtain samples of the product ahead of time), eliminating travel to the Okanagan to have a Tinhorn experience. The property remains dedicated to exploring sustainability concepts as its survival is based on mitigating climate change and the negative effects of drastic weather changes on wine production (Tinhorn Creek Winery, 2014).

Energy Conservation

Despite the relatively low cost of electricity in BC, it benefits all operators to do their part by reducing consumption and greenhouse gas emissions. Not only is this the right thing to do for the physical environment, it’s also a means to save money.

For example, the Four Seasons in Vancouver reduced their electricity consumption by 4,000 megawatt hours in the period between fall 2012 and spring 2014. They did this by installing timers and photocells on lights, auditing appliances, ensuring proper maintenance of the furnace and HVAC systems, and cleaning light fixtures and fans so these operated at their best. The energy reduction represented a savings of $135,000 for the property (Hui, 2014).

BC Ferries is another organization that has realized energy savings. It did this with the help of BC Hydro education programs and incentives, retrofitting lighting and installing radiant heat in a workshop and toll booths. These efforts yielded an energy savings of over 335 megawatt hours in one year. That represents enough energy to power 31 average homes over the same time period (BC Hydro, 2013).

Water Conservation

Figure 10.11 A hiker comes across surging fresh water from a “pineapple express” storm on BC’s coast

British Columbia is home to 25% of Canada’s fresh water, and so to many it appears that water conservation is not an issue in the province. However, water is not evenly distributed across regions, nor is it equally available all seasons of the year (BC Ministry of Environment, n.d.b). This is especially evident on Salt Spring Island, a popular tourist destination with numerous small accommodation properties. The island experiences water shortages in the peak summer season when lake and groundwater levels drop and demand is highest.

In 2006, a number of local water conservation groups on Salt Spring Island surveyed 117 accommodation providers to determine what measures might be taken to alleviate the summer pressure on freshwater systems. They were pleasantly surprised to find that several properties had already taken steps, including installing low-flow toilets and flow restrictors on shower heads, requiring minimum two-night stays (which reduces the amount of laundry required), and offering visitor education campaigns. The combined efforts of properties on the island have proven to make a significant difference to the collective capacity of 1,500 guests per night (O’Callaghan, 2006).

Food Production and the Environment

As discussed in Chapter 4 on food and beverage services, there is increasing awareness among the general public about the importance of healthful eating. This goes hand in hand with an increased understanding of food production issues including environmental impacts such as pollution, soil depletion, and the toxicity (both to humans and the environment) of industrial food growth practices. Over the last 30 years, American (and to an extent, Canadian) food growth has centred on the mass production of inexpensive staple foods such as corn and soy, which are used in unhealthy foods like high-fructose corn syrup and soybean oil, and are fed to the animals we eat (University of Minnesota, 2009).

Farming mass amounts of one crop is known as monoculture, a practice that depletes the soil and encourages the use of pesticides and fertilizers for increased production. The impacts of these chemicals to date include the creation of a “dead zone” at the outflow of the Mississippi River into the Gulf of Mexico, where no fish or other animals can live (University of Minnesota, 2009).

The soil in which food is grown is becoming less rich as commercial fertilizers focus only on building specific nutrients. Combined with the long distances that foods are shipped (sometimes causing nutrients to be depleted), consumers are becoming wary of commercially produced foods (University of Minnesota, 2009).

The 100-Mile Diet and Farm to Table

In 2005, two BC-based journalists, J.B. MacKinnon and Alisa Smith, began chronicling the challenges of only eating food produced within 100 miles of their homes, as part of a serial of articles for the Tyee. Their posts became a book, The 100-Mile Diet, launched in 2007 and heralded as a vanguard of the local food movement (Tyee, 2005).

Organizations such as FarmFolk CityFolk, a not-for-profit organization dedicated to food sustainability in the province, have been promoting farm-to-table dining for over 20 years. Their efforts include working with restaurants to bring quality ingredients to the sector, and hosting annual events that celebrate the “feast of fields” in regions such as the Okanagan (FarmFolk CityFolk, 2014).

Waste Management

Figure 10.12 A food scraps bin ready for composting, collected at a Vancouver farmer’s market

In 2012 in BC, the amount of garbage generated was equivalent to 570 kilograms per person. With landfills and treatment sites filling to capacity (and sometimes beyond), it’s imperative that communities and businesses work together in the practice of proper waste management through implementing recycling programs, reducing garbage, properly treating industrial and hazardous waste, and treating sewage and wastewater (Government of BC, n.d.).

One very effective means of reducing garbage taken to the landfill is implementing a food waste program in which food scraps are placed in a green bin and collected by the community for composting. The City of Vancouver initially introduced such a program to single family households from 2011 to 2013 and saw a 30% drop in garbage generated. In 2014, the program was expanded to include all households and businesses and placed a ban on food scraps in the garbage. The program met resistance from the BC Restaurant and Foodservices Association, which viewed the initiative as placing an extra cost and being a logistical challenge for members (Nagel, 2014). Individual restaurateurs were hopeful, however, that the city would help businesses by increasing pickup and expanding the efficiency of their other recycling programs (Robinson, 2014).

Accreditation and Certification

Environmental accreditation or certification is a type of voluntary regulation where an organization agrees to follow a set of standards, predefined processes, or regulations. These are generally developed by independent non-governmental organizations with a goal of reducing the environmental impact within an industry. Accreditation can encompass any of the practices discussed so far — from carbon offsetting to energy and water conservation to waste management.

Beyond the value of making the ethical decision of working to reduce environmental impacts, organizations receive value by being able to promote themselves as being environmentally friendly and therefore attracting consumers (Font, 2002). And for guests, choosing an independently accredited business may help them avoid companies that are guilty of greenwashing, which is the promotion of environmentally friendly tourism products without actually achieving the environmental standard promised (Lelenicz & Simoni, 2012; Self, Self, & Bell-Haynes, 2010).

Organizations join such programs voluntarily. This typically involves going through an audit to prove adherence to a set of environmental standards (Font, 2002). Generally, an audit consists of an independent third party visiting a business or operation and reviewing its practices against a checklist of standards; those that pass earn the certification or accreditation.

It is estimated that over 100 different tourism environmental certification programs exist, each with different standards and criteria (Self, Self, & Bell-Haynes, 2010).

Whether it be through carbon offsetting, energy and water conservation, increased use of local and organic food products, or official accreditation programs, the tourism industry has a number of options for lessening the impacts of businesses on the physical environment.

Conclusion

Numerous studies suggest society will face increasing pressure for scarce resources and a changing natural environment due to habitat destruction, pollution, and climate change (Hardin, 1968; Mercer, 2004; Williams & Ponsford, 2008; Wong, 2004; World Tourism Organization, 2008b). The tourism industry must recognize its considerable contribution to this global challenge and take aggressive steps to mitigate the impacts.

Figure 10.13 Bertram Beach near Kelowna, one of many BC sites the industry should strive to keep beautiful

On a global scale, the tourism industry needs to recognize its release of significant carbon emissions and explore ways to reduce these while maintaining the mobility needed for travel. On a local scale, tourism stakeholders need to recognize the risk they pose to the destruction of local pristine environments and take steps to ensure the sustainability of their operations. Only by working together can we ensure a future for tourism and our society as a whole.

This chapter has addressed a major risk to the tourism industry — the threat of environmental impacts and disasters on businesses and communities. Chapter 11 addresses the concept of risk management and legal liability in the industry.

References

BC Hydro. (2013, November 1). BC Ferries saves energy, from lighting to radiant heat in tollbooths. Retrieved from www.bchydro.com/news/conservation/2013/bc-ferries-saves-energy.html

British Columbia Ministry of Environment. (n.d.a). Ministry divisions. Retrieved from www.env.gov.bc.ca/main/divisions.html

British Columbia Ministry of Environment. (n.d.b). Water stewardship. Retrieved from www.env.gov.bc.ca/wsd/plan_protect_sustain/water_conservation/

Brundtland, G. H. (1987). Report of the World Commission on environment and development: our common future [PDF]. United Nations. Retrieved from: www.un-documents.net/our-common-future.pdf

David Suzuki Foundation. (2009). Purchasing carbon offsets: A guide for Canadian consumer, businesses, and organizations. [PDF] Retrieved from: www.davidsuzuki.org/publications/downloads/2009/climate_offset_guide.pdf

Environmental Assessment Office. (n.d.). About. Retrieved from www.eao.gov.bc.ca/about_eao.html

FarmFolk CityFolk. (2014). About Us. Retrieved from www.farmfolkcityfolk.ca/who-we-are/

Font, X. (2002). Environmental certification in tourism and hospitality: progress, process and prospects. Tourism Management, 23(3), 197-205.

Government of BC. (2010). Mountain resorts. Retrieved from: www.for.gov.bc.ca/mountain_resorts/crown_land/index.htm

Government of BC. (2011). Crown Land: Indicators and statistics report. [PDF] Retrieved from www.for.gov.bc.ca/land_tenures/documents/publications/Crown_Land_Indicators_&_Statistics_Report.pdf

Government of BC. (n.d.). Waste management – Environment. Retrieved from www2.gov.bc.ca/gov/theme.page?id=1D1E3C96BFEE11B9960E8FFEC5AF406A

Hager, M. (2015, January 30th). How B.C.’s ski resorts are coping with global warmings’ threat to their existence. The Globe & Mail. Retrieved from: www.theglobeandmail.com/news/british-columbia/how-bcs-ski-resorts-are-coping-with-global-warming/article22731538/

Hardin, G. (1968). The tragedy of the commons. Science, 162(3859), 1243-1248.

Hui, Stephen. (2014, March 27). Four Seasons Hotel Vancouver shares energy conservation lessons for Earth Hour. Georgia Straight. Retrieved from www.straight.com/life/615691/four-seasons-hotel-vancouver-shares-energy-conservation-lessons-earth-hour

Lavoie, J. (2014, October 31). Jumbo Glacier Resort threatens grizzlies. Troy Media. Retrieved from www.troymedia.com/2014/10/31/jumbo-glacier-resort-threatens-grizzlies/

Lelenicz, M. & Simoni, S. (2012). Ecolabels in tourism. Agricultural Management, 14(4), 49-52.

Mercer, D. (2004). Tourism and resource management. In C. Hall, A. Lew & A. Williams (Eds.) A Companion to tourism (pp. 462 – 472). Oxford, UK: Blackwell Publishing.

Nagel, Jeff. (2014, May 22). Metro Vancouver disposal ban on food waste ‘unworkable’. Peace Arch News. Retrieved from www.peacearchnews.com/news/260293271.html

O’Callaghan, P. (2006). The greening of tourist accommodation on Salt Spring Island. The Partnership for Water Sustainability in BC. Retrieved from waterbucket.ca/wuc/2006/10/06/the-greening-of-tourist-accommodation-on-salt-spring-island/

Offsetters. (n.d.). Harbour Air. Retrieved from www.offsetters.ca/advisory-services/case-studies/harbour-air

Parks Canada. (n.d.). Mandate. Retrieved from www.pc.gc.ca/eng/docs/pc/plans/rpp/rpp2013-14/sec01/sec01a.aspx

Rees, W. (2001). Ecological footprint, concept of. In Encyclopedia of Biodiversity (vol. 4). Waltham, MA: Academic Press, 229-244.

Robinson, M. (2014, October 2). For Vancouver restaurants, it’s not easy being green. The Vancouver Sun. Retrieved from www.vancouversun.com/business/Vancouver+restaurants+easy+being+green/10257218/story.html

Salerno, F., Viviano, G., Manfredi, E. C., Caroli, P., Thakuri, S., & Tartari, G. (2013). Multiple carrying capacities from a management-oriented perspective to operationalize sustainable tourism in protected areas. Journal Of Environmental Management, 128, 116-125.

Self, R. M., Self, D. R., & Bell-Haynes, J. (2010). Marketing tourism in the Galapagos Islands: Ecotourism or greenwashing? International Business & Economics Research Journal, 9(6), 111.

Shaw, R. (2014, December 12). More delays for Jumbo Glacier Ski Resort. The Vancouver Sun. Retrieved from www.vancouversun.com/news/More+delays+Jumbo+Glacier+resort/10465008/story.html

Theodore, T. (2014, December 5). Endangered female killer whale found dead off Vancouver Island. The Globe & Mail. Retrieved from www.theglobeandmail.com/news/british-columbia/endangered-female-killer-whale-found-dead-off-vancouver-island/article21979825/

Tinhorn Creek Winery. (2014). Tinhorn – Our winery – Sustainability – Carbon. Retrieved from www.tinhorn.com/Our-Winery/Sustainability/Carbon

Tyee. (2005, June 28). 100-mile diet. Retrieved from thetyee.ca/Series/2005/06/28/100Mile/

University of Minnesota. (2009, March 19). How are food and the environment related? Retrieved from www.takingcharge.csh.umn.edu/explore-healing-practices/food-medicine/how-are-food-and-environment-related

Watson, R. T., Zinyowera, M. C., & Moss, R. H. (Eds.). (1997). The regional impacts of climate change: an assessment of vulnerability. Cambridge, UK: Cambridge University Press. Retrieved from www.ipcc.ch/ipccreports/sres/regional/

Webster, D. (2013). Adventure tourism operators and snowmobiles; managing interactions. [PDF] Retrieved from https://dspace.royalroads.ca/docs/bitstream/handle/10170/660/webster_donald.pdf?sequence=1

Williams, P. W., & Ponsford, I. F. (2008). Confronting tourism’s environmental paradox: Transitioning for sustainable tourism. Futures, 41(6), 396-404.

Wong, P. (2004). Environmental impacts of tourism. In C. Hall, A. Lew & A. Williams (Eds.) A companion to tourism (pp. 450 – 461). Oxford, UK: Blackwell Publishing.

World Tourism Organization. (2008a). Climate change and tourism: Responding to global challenges. [PDF] Retrieved from www.unwto.org/sdt/news/en/pdf/climate2008.pdf

World Tourism Organization. (2008b). From Davos to Bali: A tourism contribution to the challenge of climate change [PDF]. Retrieved from http://sdt.unwto.org/sites/all/files/docpdf/ccbrochdavbalmembbg.pdf

Worrell, R., & Appleby, M. C. (2000). Stewardship of natural resources: definition, ethical and practical aspects. Journal of Agricultural and Environmental Ethics, 12(3), 263-277.

Attributions

Figure 10.1 Bear Watching, British Columbia, Canada by Travel Junction is used under a CC BY-SA 2.0 license.

Figure 10.2 COP15 UNFCCC Climate Change – Opening Ceremony by UN Climate Change is used under a CC BY-NC 2.0 license.

Figure 10.3 Helms Glacier melting in the hot sun by Kyle Pearce  is used under a CC BY-SA 2.0 license.

Figure 10.4 Dirty Boat: view of Coney Island from the beach after Hurricane Sandy by drpavloff is used under a CC BY-NC 2.0 license.

Figure 10.5 Full Moon Party by Dav Naginuma is used under a CC BY-NC-SA 2.0 license.

Figure 10.6 British Columbia Coast Range by gordon hunter is used under a CC BY-SA 2.0 license.

Figure 10.7 BC Parks Ranger A.J. by Park Ranger is used under a CC BY-NC-SA 2.0 license.

Figure 10.8 Logging decimation in Jervis Inlet by McKay Savage is used under a CC BY-SA 2.0 license.

Figure 10.9 I Will Follow by Bruce McKay is used under a CC BY-NC-ND 2.0 license.

Figure 10.10 Harbour Air – the world’s first Carbon Neutral Airline by Djun Kim is used under a CC BY-NC-SA 2.0 license.

Figure 10.11 Pineapple Express by Steven Petty is used under a CC BY-SA 2.0 license.

Figure 10.12 Food Scraps Drop Spot project by Vancouver Farmers Market by brent granby is used under a CC BY-NC-SA 2.0 license.

Figure 10.13 Beautiful Bertram Beach, Kelowna BC by Stuart Madden is used under a CC BY-SA 2.0 license.

Don Webster

Overview

This chapter examines the concepts of risk management and legal liability in tourism and hospitality. We’ll review theoretical risk concepts and practical risk management applications while exploring applicable areas of statute, tort, and contract law. Insurance and occupational health and safety are also discussed. Examples are provided that apply to principles of risk management for tourism and hospitality operations. Please note that the advice and definitions provided in this chapter are general, and should not be relied on in the case of legal action. They will, however, provide a foundation for working in the tourism industry, and for further study.

What is Risk Management?

Risk is defined as the potential for loss or harm (Canadian Tourism Commission [CTC], 2003a). This could be a financial loss, damage to property, or injury to workers or guests. Understandably, most tourism operators are interested in avoiding these impacts to their operation, which is why risk management is needed.

Figure 11.1 Signage indicates a risk for people wanting to fish in this stream near Waneta, BC due to turbulent flows and rapidly rising water levels.

Risk management refers to the practices, policies, and procedures designed to minimize or eliminate unacceptable risks (Cloutier, 2000; CTC, 2003a; Heshka & Jackson, 2011). Depending on the type of operation and the industry undertaking the risk management process, these may vary greatly. Consequently, it is helpful to think of risk management as being a process of determining the exposure to risk, and then initiating action to either minimize or eliminate the risk (Enterprise Risk Management, 2004).

Why Practise Risk Management?

There are two main reasons for tourism operators to practise risk management: to avoid injury to guests and employees, and to protect their business operations from financial or physical ruin.

Keeping guests and employees safe is a moral and ethical responsibility of operators and includes avoiding both emotional and physical harm. Protecting business operations includes protecting against damage to property, damage to reputation, and any financial impacts occurring from litigation (Centre for Curriculum, Transfer, and Technology [CCTT], 2003a). By practising this twofold approach, operators demonstrate that they are are prioritizing the health and safety of individuals, while still taking steps to protect the operational sustainability of their company.

Figure 11.2 All eyes of the media could be on a business if it has not effectively managed risk.

On a larger scale, practising effective risk management can be seen as an important business skill. The Canadian Tourism Commission (2003a) suggests that risk management:

• Reduces the likelihood of an unwanted and unplanned event
• Reduces the consequences of the event
• Enhances your ability to access comprehensive and cost-effective insurance

Risk management can be undertaken at any scale. Individuals, companies, societies, communities, cities, regions, and even governments can follow the process in order to protect themselves from risks, which may range from company-specific risks such as disruption of revenue to significant international risks such as climate change and civil disturbances.

Some risk management initiatives are easier than others; they are required by law and enforced by government agencies. For example, companies providing public transportation (such as passenger transport in a bus) have clearly defined requirements as set out by their local motor vehicle branch in government. They are required to use appropriately licensed drivers, submit to commercial vehicle inspections, and insure their vehicles as required. Failing to adhere to these standards may result in suspension of operating privileges, fines, or even imprisonment.

However, other aspects of risk management are not regulated so extensively. This is characteristic of the majority of tourism and hospitality activities offered in Canada today. Operators offer services to the general public and self-regulate in terms of safety. If injury to a guest occurs, and that guest feels that he or she has grounds for a financial claim, that person can initiate a lawsuit against the tourism operator. If this claim is found valid in court, then the tourism operator may have to pay a large financial settlement to that claimant.

In short, tour operators must comply with applicable statutory requirements and be sure to self-monitor to determine if the standard that they are operating at is acceptable to society and their peers. Failing to do so may result in a range of consequences including fines, suspension of operations, or a lawsuit. Clearly, risk management for tourism and hospitality is a complicated process.

Concepts of Risk

Before we proceed deeper into an examination of the risk management process, let’s look at three theoretical concepts of risk: real risk, perceived risk, and inherent risk.

Real risk is the actual statistical likelihood of an incident occurring. This is established through reviews of statistics and other relevant data, and by an analytical process and use of expertise in the field. There is little ambiguity or subjectivity in real risk (CTC, 2003a).

Perceived risk is the perception of risk by those undertaking or evaluating something; it may vary greatly based on their level of apprehension, anxiety, or experience with the specific risk. Perceived risk can also vary greatly from the real risk of an activity; it can be higher or lower than the actual risk. Successful management of perceived risk may include operators promoting the risk of activity as high, even if in reality the risk is minimal. This strategy can ensure successful delivery of an exhilarating, challenging experience while remaining safety conscious (Dowling, 1986).

Inherent risk is the risk that must exist for the activity to occur; examples include the risk of drowning when swimming and the risk of falling during skiing. It is impossible to eliminate inherent risk from these activities because it would preclude participating in them. However, operators should take steps to minimize inherent risk; this could include, for example, providing appropriate safety equipment for guests, training staff, and informing participants of the hazards of the activity (CCTC, 2003b).

Figure 11.3 An ambulance outside a Vancouver hotel

Risk Management Process

A variety of risk management models exist, all of them generally a variation on the same theme, with each having a slightly different analytical approach. Here we outline the model from the Canadian Tourism Commission for small and medium enterprises. It has four stages: risk identification, risk analysis, risk control, and risk treatment (CTC, 2003a).

Risk Identification

The first stage of the risk management process is systematically identifying risks facing the organization. This step is often referred to as risk assessment. An organization can identify risks in the following ways (CTC, 2003a, p. 6):

• On-site inspections and discussions with management and staff
• Review of products, services, processes, and contracts
• Review of historical activities and losses
• Identification of possible risk scenarios

Once an exhaustive list of the risks is compiled, the next step is to ensure a thorough analysis occurs.

Risk Analysis

A typical risk analysis compares the probability (frequency) of any risks occurring by the consequence (severity) if they do occur. This can be done either in a qualitative or quantitative manner, with either numerical values or descriptors applied. For example, an analysis of the risk of the catastrophic failure of a ski lift at a resort resulting in passengers falling to the ground would likely indicate that the probability of this incident occurring is low due to required safety checks and maintenance. However, the consequence would likely be high, considering there could be many visitors involved in a significant fall, resulting in multiple casualties.

Operators need to respond (through risk control, see below) if the analysis determines any of the following: 1) the probability of the risk occurring is unacceptable; 2) the consequence of the risk occurring is unacceptable; or 3) the combined impact of the probability and consequence is deemed unacceptable (Cloutier, 2000).

Figure 11.4 Safety equipment required to zip-line

Risk Control

Once the risks are identified and analyzed, the next step is implementing mitigation strategies for any unacceptable risks. This step is risk control, and it comprises two primary concepts: exposure avoidance and loss reduction.

Exposure avoidance involves any mitigation strategies used to avoid the exposure to the risks. Examples are eliminating particularly hazardous activities or services, avoiding certain areas due to environmental threats, or changing a tour destination due to political unrest.

Loss reduction is slightly different; it assumes that you have acknowledged the risk of a particular activity or service, and choose to continue to offer it, but will take steps to mitigate the severity of damage that may occur (CCTT, 2003a). An example is requiring all participants in a ski lesson to wear helmets; the risk of falling still exists, but you have taken action to reduce the severity of any fall.

Risk Treatment

Failing the ability to control all risks identified, the next step in the process is risk treatment. This includes the concept of risk transfer and risk retention. Risk transfer refers to the transfer of responsibility to another party, either contractually or by insurance. Risk can be transferred through contract either by entering into a contract for service, or by requiring participants to sign a waiver. Risk is transferred through insurance by paying premiums to an insurer, wherein they absorb the financial risk of an accident. Risk retention refers to the level of risk that is retained by the company through a conscious decision-making process. Examples of this may include the decision to increase the size of insurance deductible to use, the use of self insurance, or consciously not transferring risks due to an inability to do so (CTC, 2003b).

Tort Law and Negligence

Figure 11.5 The plaza at BC’s provincial law courts

Tort law in Canada refers to the “body of the law which will allow an injured person to obtain compensation from the person who caused the injury” (Tort Law, n.d., ¶ 1). Two categories of torts exist: intentional and unintentional. Intentional torts consist of assault, battery, trespass, false imprisonment, nuisance, and defamation. Unintentional torts primarily consist of negligence (Tort Law, n.d.). In tourism, most lawsuits involve negligence, with one party seeking financial compensation.

Tourism operators must consider their exposure to unintentional torts, specifically negligence. Negligence can be defined as “the omission to do something which a reasonable man, guided upon those considerations which ordinarily regulate the conduct of human affairs, would do, or doing something a prudent and reasonable man would not do” (Cloutier, 2000, p. 13). In other words, if the safety standards of a business fall below an established standard and injury occurs as a result, the injured person may sue for negligence.

Pursuing legal action against an operation for negligence is a long process that needs to be initiated by the person who has been injured. To be successful, four elements have to be proved: injury, duty to care, breach in the standard of care, and causation.

The first of these, injury, means that it must be shown that the person suing did, in fact, receive an injury that resulted in damages. This might be physical damage, such as a bodily injury, or it may be damage to property.

The concept of duty to care refers to the relationship between the plaintiff and the defendant, a relationship requiring the defending party to care for the plaintiff. For example, in tourism, there exist relationships between hotels and guests, tour guides and tour participants, and instructors and students. The question to ask is whether it is expected that one person or organization in the relationship is responsible for ensuring the other person is safe from reasonable harm. Is a tour guide responsible for the safety of the participant? If an operator answers yes, chances are that a duty to care exists.

Once a duty has been established, the next step is proving negligence is to show that there was a breach in the standard of care. This means that the defendant failed to work to the recognized standard. The standard may be established by professional organizations or simply by the “reasonable person test,” which is an assessment of what other individuals or operations would have done in the same situation. Tourism operators are responsible for determining what current standards in industry are; not being aware of industry standards is not be an acceptable defence in the courts.

The last element that needs to be proved is causation. This means that there must be a strong link between the actions of the defendant that caused injury to the plaintiff.  For example, if a ski resort failed to clear the ice off its pathways, and someone fell and was injured on the icy path, it is likely that causation could be proved (Heshka & Jackson, 2011).

Contract Law

Figure 11.6 Signing a contract

Contracts are frequently used by tourism operators. Common types of contracts include contracts for service, employment agreements, rental agreements, and legal releases (waivers) (Cloutier, 2000). Given the importance of all of these types of agreements, it is vital that operators use documents that are valid and clearly based in contract law. For a contract to be valid and legally enforceable, it must contain all of the following components: an offer and acceptance, consideration, an intent to enter into a legal relationship, and sufficient capacity (understanding) of those involved involved (Longchamps & Wright, 2007). Each of these is described below.

Offer and acceptance means that the “offer” (e.g., a rental car agency will advertise a car for rent) must be clear, unequivocal, and include all of the important and relevant terms in the contract. The acceptance also must be clearly expressed (e.g., the renter agrees to rent the car according to the terms and conditions offered by signing the contract). Once the offer is accepted, it becomes a promise with both parties being bound by the terms of the contract.

Consideration refers to the value that is exchanged between parties in the contract, such as money or services (e.g., the renter pays for use of the rental car). Sometimes consideration is waiving your legal rights for a right to participate in an activity.

An intent to enter into a legal relationship means that the individuals signing are doing so deliberately and understand that if they do not do what they have agreed to do they will be in a breach of their contract.

Capacity refers to the ability of individuals to enter the contract. If a person signing a contract does not have sufficient capacity, the contract will not be binding. The most common reason for not having sufficient capacity is age. In most cases, a person who has not reached the legal age of majority cannot contract with someone else. Other requirements for capacity include having sufficient mental capacity, and being the authorized signatory (the person with the authority to sign on behalf of an organization) (Longchamps & Wright, 2007).

The implications of contract law to the tourism and hospitality industry are extensive; any contact signed needs to have unambiguous terms, be clearly accepted, have an exchange of value, and be signed by an adult with full mental capacity or by an authorized signatory of the organization. Failing to adhere to any of these conditions will likely result in the contract being considered void.

Waivers

For many tourism operators, waivers are considered a key part of their risk management process. Waivers are particularly important in the adventure, outdoor, and sport tourism sectors where there is a greater risk of personal injury, and they are an effective risk management tool.

A waiver is a form of contract that transfers acceptance of the risk to the participants by requiring them to acknowledge the risks present in the activity. It also requires participants to waive their right to take legal action if an accident occurs. Despite their effectiveness, there have been cases where waivers have failed to protect an organization, often because the waiver was poorly written or delivered incorrectly (Importance of Waivers in Recreation Programs, n.d.).

To be effective, a waiver should include four components. First, it should clearly outline the risks in the activity — voluntary acceptance of risk. Second, it should waive the participant’s right to pursue legal action against the tourism operation in case of negligence — waiver of rights. Third, it should be relatively short and easy to read, be easily recognized as a legal document, and include a place for signature that can be witnessed by a company employee. Fourth, it should be signed by participants only when they have been given ample time to read and understand it well in advance of the event or activity. Failure to provide enough time may be interpreted by the courts as signing under duress, which would make the contract void and mean that the waiver could not be used as a defence against negligence (Importance of Liability Waivers in Recreation Programs, n.d.; Karroll v. Silverstar Resorts, 1988).

Statutory Requirements for Tourism and Hospitality in BC

All tourism companies must adhere to the laws in the jurisdiction in which they operate. In BC there are certain statutes (laws) that are particularly relevant to tourism and hospitality. These are outlined in brief below.

Hotel Keepers Act

The Hotel Keepers Act allows an accommodation provider to place a lien on guest property for unpaid bills, limits the liability of the hotel keeper when guest property is stolen and/or damaged, and gives the provider the authority to require guests to leave in the event of a disturbance (Hotel Keepers Act, 1996).

Hotel Guest Registration Act

The Hotel Guest Registration Act requires hotel keepers to register guests appropriately, which includes noting a guest’s arrival and departure dates, home address, and type and licence number of any vehicle (Hotel Guest Registration Act, 1996).

Liquor Control and Licensing Act

The sales and service of alcohol in BC hospitality establishments is highly regulated by the provincial government through the Liquor Control and Licensing Branch (LCLB).

Hospitality operators and their staff must be aware of fundamental requirements of the Liquor Control and Licensing Act, which defines the ways in which alcohol can be made, imported, purchased, and consumed in BC. These include (British Columbia Ministry of Justice, 2015):

• The legal drinking age in BC (19 years of age)
• Identification requirements (one piece of government-issued I.D. and a supplementary I.D. with photo or signature)
• Restrictions on minors: entering pubs and bars (not permitted; exceptions in certain circumstances)
• Serving alcohol in a restaurant (permitted as of age 16 provided they do not mix drinks or open bottles)
• Consumption of alcohol in public places such as parks and beaches (not permitted unless specified as part of an event or festival)
• Bringing a bottle of wine to a restaurant (permitted, with restrictions)

As these requirements change frequently, it is the responsibility of operators and staff to keep up-to-date on the particulars of liquor legislation.

Travel Industry Regulation

As part of the Business Practices and Consumer Protection Act, the Travel Industry Regulation outlines the requirements for licensing, financial reporting, and the provision of financial security for travel sales. Additionally, it requires licensed travel agents to contribute to the Travel Assurance Fund, which compensates consumers if a travel provider is unable to provide the purchased product due to insolvency (Travel Industry Regulation, 2009).

Occupiers Liability Act

The Occupiers Liability Act specifies the responsibilities of those that occupy a premise such as a house, building, resort, or property to others on their property. It includes a definition of a premise, as well as the duty of care the occupier has to care for the condition of the premises, activities on the premises, and the conduct of other people (third parties) on the premises. It also outlines when occupiers liability is excluded, such as on Crown land or private roads (Occupiers Liability Act, 1996).

Figure 11.7 An abandoned hotel outside Radium Hot Springs, BC

Resort Associations Act

The Resort Associations Act was developed to provide opportunities to fund a variety of promotional services for a resort community. It outlines the organizational structure for the community and allows funding through member fees for activities such as marketing, planning special events, developing signage, and acting as a central booking agency (Resort Associations Act, 1996). To meet the criteria for this Act, resort areas are required to be within a designated resort region, have alpine ski lift operations, and provide year-round recreational facilities or commercial overnight accommodation (Government of BC, 2015).

Insurance

Obtaining and maintaining appropriate insurance coverage is an important part of the risk management process. Insurance transfers the financial risks to a third party — the insurance company. Operators pay premiums that are established by the insurer based on the risk of the coverage. If the likelihood of claims is high, the premiums will be higher. There are a variety of reasons why a tourism company requires insurance: to control the risk of offered activities, to meet statutory requirements, because industry partners require it, to protect business and assets, and to protect employees (CTC, 2003b, p. 3).

Common types of insurance policies required by tourism operators include commercial general liability (CGL), property insurance, and accounts receivable insurance. CGL insurance can be one of the most important coverages, but unfortunately it can also be one of the most difficult and expensive to obtain. CGL policies cover operators for liability if an accident occurs, including bodily injury, medical payments, and personal injury. Property insurance provides coverage for the financial risks associated with loss of assets such as buildings, equipment, and merchandise. Accounts receivable insurance can cover a large proportion of account receivables if a customer fails to pay due to default or insolvency, thus providing a considerable safeguard to any tourism operation (CTC, 2003a; CTC, 2003b; Destination BC, 2013).

Insurance does not prevent accidents from happening, nor does it make an operation safer. It does, however, provide a reasonable amount of financial protection if an accident does happen.

Some insurance coverage is optional, and operators may decide to self-insure on assets such as property and accounts receivable. Self insuring is the practice of an operation retaining the risk rather than transferring through insurance; it may be a conscious choice or a necessity based on lack of available coverage.

Other insurance coverage may be needed, such as motor vehicle insurance or liability insurance (required by most industry partners and some statutory requirements). In the end, the tourism operator must determine what coverage is required and what optional additional coverage is desired.

Occupational Health and Safety in Tourism

So far we have primarily discussed risk management from a client/guest perspective. However, substantial effort in a tourism and hospitality operation must be put into managing worker safety as well. Responsibilities for worker safety are generally legislated by occupational health and safety laws, which clearly dictate safety standards. Employers who fail to adhere to these standards may be penalized or fined (WorkSafeBC, 2015a).

WorkSafeBC is the provincial organization for occupational health and safety in BC. It is an independent agency managed by a board of directors who are appointed by government. The mandate of WorkSafeBC is to (2015b, ¶ 3.):

• Promote the prevention of workplace injury, illness, and disease
• Rehabilitate those who are injured and provide timely return to work
• Provide fair compensation to replace workers’ loss of wages while recovering from injuries
• Ensure sound financial management for a viable workers’ compensation system

There was an average of 6,505 tourism and hospitality WorkSafeBC claims each year from 1998 to 2007, with approximately $32,100,000 paid out annually (WorkSafeBC, 2015c). This included payments for physical rehabilitation as well as short- and long-term disability disbursements. To reduce these claims and protect workers, WorkSafeBC has an extensive worker safety program with educational resources and training programs available. A partnership with go2HR — the tourism and hospitality human resources organization — has been developed to raise awareness in tourism and hospitality about worker safety, particularly for young, vulnerable workers (go2HR, 2015).

Figure 11.8 Kitchen accidents are a common workplace injury in hospitality. Many are more serious than this.

The nature of tourism and hospitality often means operations need to employ a considerable number of employees; these are often entry-level positions, requiring little experience. Employers need to be cognizant of the requirements for worker safety under WorkSafeBC; failing to do so may result in fines for the operation, or far worse — workplace injuries to employees.

In addition to concerns about safety, employers and employees must be aware of the Employment Standards Act. This act defines the legal requirements around employment such as minimum wage, breaks, meal times, vacation pay, statutory holidays, age of employment, and leave from work (British Columbia Ministry of Labour, 2015)

Conclusion

Risk management in tourism and hospitality is complex, involving aspects of adhering to statutory requirements, taking steps to ensure occupational health and safety requirements are met, and undertaking an analytical approach to mitigating potential liabilities. Most of the actions required need to be proactive by the operators; failing to do so may result in negative impacts to reputation, damage to property, fines, lawsuits, or in the most tragic result — injury to guests or employees. Companies not only have a moral and ethical responsibility to practise effective risk management, failing to do so can result in financial ruin and the cessation of operations.

This chapter reviewed an important consideration for tourism and hospitality professionals. Chapter 12 addresses another key component of the industry in BC, Aboriginal tourism.

References

British Columbia Ministry of Justice. (2015, April 15). Law basics – Liquor licensing in BC – Liquor Control and Licensing Branch. Retrieved from www.pssg.gov.bc.ca/lclb/LLinBC/basics.htm

British Columbia Ministry of Labour. (2015). Employment Standards Act. Retrieved from http://www.bclaws.ca/EPLibraries/bclaws_new/document/ID/freeside/00_96113_01

Canadian Tourism Commission (CTC). (2003a). Risk management guide for tourism operators. Ottawa, ON: Fitzgerald, P.

Canadian Tourism Commission (CTC). (2003b). Insurance tutorials for outdoor tourism operators. Ottawa ON: Valade, G.

Centre for Curriculum, Transfer and Technology (CCTT). (2003a). Health and safety in adventure tourism [PDF]. Retrieved from: http://bhudak.com/Health%20and%20Safety%20Guide.pdf

Centre for Curriculum, Transfer, and Technology (CCTT). (2003b). Risk management for outdoor programs [PDF]. Retrieved from: www.nic.bc.ca/continuingeducation/pdf/supply_lists/Risk%20Guide%20for%20Students.pdf

Cloutier, R. (2000). Legal liability and risk management in adventure tourism. Winnipeg, MB: Hignell Printing.

Destination BC. (2013). Tourism fundamentals guide. Retrieved from: www.destinationbc.ca/Programs/Guides-Workshops-and-Webinars/Guides/Tourism-Business-Essentials-Guides.aspx#.VLXXlb5JXHM

Dowling, G. (1986). Perceived risk: The concept and its measurement. Psychology & Marketing, 3(3), 193-210.

Enterprise Risk Management. (2004). A practical guide to risk assessment. [PDF] Retrieved from: hwww.pwc.com/en_us/us/issues/enterprise-risk-management/assets/risk_assessment_guide.pdf

go2HR. (2015). Health & safety. Retrieved from www.go2hr.ca/health-safety

Government of BC. (2015). British Columbia resort associations. Retrieved from www.cscd.gov.bc.ca/lgd/gov_structure/resort_associations/index.htm

Heshka, J. & Jackson, J. (2011). Managing risk: Systems planning for outdoor adventure programs. Palmer Rapids, ON: Direct Bearing Incorporated.

Hotel Guest Registration Act. (1996). Retrieved from www.bclaws.ca/civix/document/id/complete/statreg/96205_01

Hotel Keepers Act. (1996). Retrieved from www.bclaws.ca/civix/document/id/complete/statreg/96206_01

Importance of Liability Waivers in Recreation Programs, The. (n.d.). Retrieved January 14, 2015, from www.sms.bc.ca/2012/03/the-importance-of-liability-waivers-in-recreation-programs/

Karroll v. Silverstar Resorts. (1988). Canlii 3094 (BCSC). Retrieved from www.canlii.org/en/bc/bcsc/doc/1988/1988canlii3094/1988canlii3094.html

Longchamps, D. & Wright, B. (2007). Canadian hospitality law, liabilities, and risk. [PDF] Toronto, ON: Nelson Education. Retrieved from www.longchamps3e.nelson.com/instructor/03Ch03.pdf

Occupiers Liability Act. (1996). Retrieved from www.bclaws.ca/civix/content/complete/statreg/667588372/96337/?xsl=/templates/browse.xsl

Petriuk, J. (2015, January 16). Woman who broke leg on tube ride sues Sun Peaks resort for negligence. The Vancouver Sun. Retrieved from www.vancouversun.com/news/Woman+broke+tube+ride+sues+Peaks+resort+negligence/10735423/story.html#ixzz3POnvmUJb

Resort Associations Act. (1996).  Retrieved from www.bclaws.ca/civix/document/id/complete/statreg/96320_01

Tort Law – An Introduction. (n.d.). Retrieved January 14, 2015, from www.duhaime.org/LegalResources/TortPersonalInjury/LawArticle-72/Tort-Law–An-Introduction.aspx

Travel Industry Regulation, Business and Consumer Protection Act. (2009). Retrieved from www.bclaws.ca/civix/document/id/complete/statreg/296_2004

WorkSafeBC. (2015a). Statistics for tourism & hospitality. Retrieved from www2.worksafebc.com/Portals/Tourism/Statistics.asp?ReportID=22495&_Type=Statistics-for-Tourism-Hospitality&_Title=General-Tourism

WorkSafeBC. (2015b). Our mandate. Retrieved from www.worksafebc.com/about_us/our_mandate/

WorkSafeBC. (2015c). Accident investigations. Retrieved from www2.worksafebc.com/Topics/AccidentInvestigations/Home.asp

Attributions

Figure 11.1 Turbulent Flows by Curtis Perry is used under a CC BY-NC-ND 2.0 license.

Figure 11.2 Larry O’Brien Verdict press core-0219 by David Carroll is used under a CC BY 2.0 license.

Figure 11.3 Not a good thing to move from a hotel room to a hospital room by Canadian Pacific is used under a CC BY-NC 2.0 license.

Figure 11.4 Carabiner by Alberto is used under a CC BY-SA 2.0 license.

Figure 11. 5 2014 – Vancouver – Red Spring – Provincial Law Court Plaza by Ted McGrath is used under a CC BY-NC-SA 2.0 license.

Figure 11.6 Day 207: I’ve Contracted An Agreement by Juli is used under a CC BY-NC-ND 2.0 license.

Figure 11.7 Motel No Mo’ by Jerry Bowley is used under a CC BY-NC-SA 2.0 license.

Figure 11.8 Autsch !!! by Franz Walter is used under a CC BY-NC-SA 2.0 license.

Keith Henry and Terry Hood

Overview

In previous chapters, you’ve learned that Aboriginal tourism is an increasingly central part of BC’s tourism economy. In Canada, tourism operations that are majority owned and operated by First Nations, Métis, and Inuit people comprise this segment of the industry. This chapter explores the global context for Aboriginal tourism development, the history of the sector in BC, and important facts about Aboriginal tourism in BC today.

Figure 12.1 A Haida sculpture welcomes people arriving at Vancouver International Airport

Today’s travellers are attracted to many global destinations because of the opportunity to interact with, and learn from, other cultures. Visitors to Australia can meet an Aboriginal guide who will help them feel a spiritual connection through a memorable outback experience. In New Zealand (Aotearoa in the Maori language), tourists are often welcomed into a ceremonial community marae, a communal or sacred centre that serves a religious and social purpose in Polynesian societies (New Zealand Maori Tourism Society, 2012).

In the mountainous region of northern Vietnam, traditionally dressed ethnic minority villagers are now opening their homes to international trekkers, thus generating new income for the community. In the United States, visitors to the ancient desert wonders of Monument Valley can enhance their experience in a Navaho-run hotel, enjoying indigenous cuisine while learning about the cultures of the Native American groups that have lived there for centuries.

Globally, indigenous peoples are those groups protected under international or national legislation as having specific rights based on their historical ties to a particular territory and their cultural or historical distinctiveness from other populations (Coates, 2004). Indigenous people in Canada are often called First peoples or Aboriginal peoples and have diverse languages, ceremonies, traditions, and histories. The Canadian Constitution Act recognizes three groups of Aboriginal people: First Nations, Inuit, and Métis.

Before learning more about Canadian First peoples and their social and cultural connections to tourism, let’s acknowledge the often negative impacts of recent history on indigenous peoples around the globe. Current attempts to influence positive change in this area will then be highlighted.

Tourism and Indigenous Human Rights

The history of tourism has seen considerable exploitation of indigenous peoples. Land has been expropriated, economic activity suppressed by outside interests, and cultural expressions (such as arts and crafts) have been appropriated by outside groups. Appropriation refers to the act of taking something for one’s own use, typically without the owner’s permission.

In recognition of these wider concerns, in 2007, the United Nations created the Declaration on the Rights of Indigenous People. This marked a significant achievement in obtaining international recognition of key rights, including, but not limited to, self-determination, land use, and natural resources rights. It set forth the minimum standards for the survival, dignity, and well-being of the indigenous peoples of the world (United Nations, 2007).

Themes related to indigenous tourism were raised at this time, but it was not until 2012 that the Pacific Asia Travel Association organized a gathering of global indigenous tourism professionals to establish guiding principles for the development of indigenous tourism. These principles are now known as the Larrakia Declaration on the Development of Indigenous Tourism, named after the Larrakia Nation, the Australian Aboriginal host community for the meeting (PATA & WINTA, 2014).

The Larrakia Declaration

Figure 12.2 This “We Don’t Climb” sign expresses the traditional laws of Australian Aboriginal people and asks that tourists not climb Uluru (once known as Ayers Rock). In the background, dozens of people continue to climb.

According to the Larrakia Declaration, these are the key principles that should guide all culturally respectful indigenous tourism business development (World Indigenous Tourism Alliance, 2012, pp. 1-2):

“It is hereby resolved to adopt the following principles; that …

• Respect for customary law and lore, land and water, traditional knowledge, traditional cultural expressions, cultural heritage that will underpin all tourism decisions.
• Indigenous culture, the land and waters on which it is based, will be protected and promoted through well managed tourism practices and appropriate interpretation.
• Indigenous peoples will determine the extent, nature and organisational arrangements for their participation in tourism and that governments and multilateral agencies will support the empowerment of Indigenous people.
• That governments have a duty to consult and accommodate Indigenous peoples before undertaking decisions on public policy and programs designed to foster the development of Indigenous tourism.
• The tourism industry will respect Indigenous intellectual property rights, cultures and traditional practices, the need for sustainable and equitable business partnerships and the proper care of the environment and communities that support them.
• That equitable partnerships between the tourism industry and Indigenous people will include the sharing of cultural awareness and skills development which support the well-being of communities and enable enhancement of individual livelihoods.”

Using these guiding principles, it becomes clear that Aboriginal tourism development can be considered successful only if the rights of indigenous people are upheld.

Before turning our attention to Canadian and BC Aboriginal tourism examples, let’s briefly consider the context in which these activities in tourism are occurring, and review more important definitions. We can do this by taking a closer look at Canada’s First peoples.

First Peoples in Canada

First Peoples: A Guide for Newcomers (Wilson & Henderson, 2014) is an excellent resource for tourism professionals who want to know more about the complex socio-political issues surrounding Aboriginal people in Canadian history and society today. This section contains highlights from this guide.

In 2011, approximately 1.4 million people in Canada identified themselves as Aboriginal — roughly 4.3% of the total population.

First Nations people are Aboriginal peoples who do not identify as Inuit or Métis. They have lived across present-day Canada for thousands of years and have numerous languages, cultures, and spiritual beliefs. For centuries, they managed their lands and resources with their own governments, laws, and traditions, but with the formation of the country of Canada, their way of life was changed forever. The government forced a system of band governance on First Nations so that they could no longer use their system of government. There are now 203 bands in BC, and 614 across the country (Wilson & Henderson, 2014).

Figure 12.3 First Nations performer at the opening of the Aboriginal Pavilion for the 2010 Olympic and Paralympic Games

Colonial settlement has left a legacy of land displacement, economic deprivation, and negative health consequences that Canada’s First Nations are still striving to overcome (Wilson & Henderson, 2014). However, First Nations people are working hard to reclaim their traditions, and in many places there is an increasing pride in a revitalized culture.

Indian (or Native Indian) is still an important legal term in Canada, but many Aboriginal people associate it with government regulation and colonialism and its use has gone out of favour, unlike in the United States where American Indian is still common (Wilson & Henderson, 2014).

Inuit have lived in the Arctic region of Canada for countless years. Many Inuit still rely on the resources of the land, ice, and sea to maintain traditional connections to the land. The old ways of life were seriously compromised, however, when Inuit began to participate with European settlers in the fur trade. The Government of Canada accelerated this change by requiring many Inuit communities to move away from their traditional hunting and gathering ways of life on the land and into permanent, centralized settlements (Wilson & Henderson, 2014).

Today, in spite of social and economic hardships created by this change, many Inuit communities focus on protecting their traditional way of life and language. Recently the inukshuk, an Inuit symbol used as a welcoming signpost for hunters, was used as a key emblem for the 2010 Olympic and Paralympic Games.

Note that non-Inuit people used to call Inuit people Eskimo, but this is now considered insulting and should be avoided (Wilson & Henderson, 2014).

Métis comes from the words to mix. In the 1600s and 1700s, many French and Scottish men migrated to Canada for the fur trade. Some of them had children with First Nations women and formed new communities, and their people became the first to be called Métis. Today, the infinity symbol on the Métis flag symbolizes the joining of two cultures that will live forever.

The distinct Métis culture is known for its fine beadwork, fiddling, and jigging. Canadian and international tourists can learn from and enjoy participating in a large number of Métis festivals in most provinces across the country.

There is an increasing appreciation that intercultural exchanges can help strengthen cultures at risk, if managed thoughtfully. For example, the growing niche of Arctic cruise tourism has brought both opportunities and challenges to the isolated small communities of Canada’s rugged Arctic coast. In recognition, the World Wildlife Fund produced a Code of Conduct for Arctic tourists. In part it reads:

Respect Local Cultures:

• Learn about the culture and customs of the areas you will visit before you go.
• Respect the rights of Arctic residents. You are most likely to be accepted and welcomed if you travel with an open mind, learn about local culture and traditions, and respect local customs and etiquette.
• If you are not travelling with a tour, let the community you will visit know that you are coming.
• Supplies are sometimes scarce in the Arctic, so be prepared to bring your own.
• Ask permission before you photograph people or enter their property or living spaces.”

(WWF International Arctic Programme, n.d., p. 2)

Tourism can promote community and economic development while preserving indigenous culture. With that in mind, let’s have a look at the evolution of Aboriginal tourism in Canada, and at some strategies to advance this segment of the industry.

Aboriginal Tourism in Canada

Evolution of Aboriginal Tourism in Canada

While there has always been some demand among visitors to Canada to learn more about Aboriginal heritage, driven by the strong interest of Europeans in particular, until recently there has been no concerted effort to focus on defining and strengthening Aboriginal cultural tourism. However, over the last 20 years or so, steps have been taken to support authentic Aboriginal cultural products and experiences and to counter decades of appropriation of Aboriginal symbols and arts and crafts by non-Aboriginal Canadians.

Aboriginal exhibits and displays were developed for tourism attractions and museums by well-meaning non-Aboriginals who did not consult with local communities. Souvenir shops were often filled with inexpensive overseas-made replicas of authentic Aboriginal arts and crafts, and some still are. To this day, we see the Canadian Prairie Aboriginal headdress being used as a way of (mis)representing First Nations across Canada.

Figure 12.4 Cultural products for sale as souvenirs

As the number of Aboriginal tourism businesses started to increase in the 1980s and 1990s, the federal government initiated discussions on Aboriginal tourism. The outcome was the formation of national organizations that provided a coordinated industry voice for operators: Aboriginal Tourism Team Canada (ATTC), Aboriginal Tourism Canada, and Aboriginal Tourism Marketing Circle (ATMC), and others. These groups started the trend of defining Aboriginal cultural tourism standards and promoting the establishment of regional, provincial, and territorial organizations to develop and market more successful businesses. Today, these functions are performed by the Aboriginal Tourism Association of Canada (ATAC).

Aboriginal Tourism in Canada Today

Despite challenges such as appropriation, thanks to these organizations, tourism is becoming a major economic and cultural driver for Aboriginal communities across Canada. It is estimated that in 2014 “Aboriginal tourism provided over 37,000 jobs in Canada and generated almost $3 billion in gross output into the Canadian economy … up substantially since 2002 where jobs were estimated at 13,000 and gross output was estimated at $2.3 billion” (O’Neil et al., 2014, p. i-xii).

To define this segment of the industry, the Aboriginal Tourism Association of Canada (2013, p. 4) uses these terms:

Aboriginal tourism: describes all tourism businesses that are majority-owned and operated by First Nations, Métis and Inuit. They must also demonstrate a connection and responsibility to the local Aboriginal community and traditional territory where the operation resides.

Aboriginal cultural tourism: meets the Aboriginal tourism criteria and in addition, a significant portion of the experience incorporates Aboriginal culture in a manner that is appropriate, respectful and true to the Aboriginal culture being portrayed. The authenticity is ensured through the active involvement of Aboriginal people in the development and delivery of the experience.

Aboriginal cultural experiences: offer the visitor a cultural experience in a manner that is appropriate, respectful and true to the Aboriginal culture being portrayed.

Strengthening Aboriginal Tourism in Canada

Figure 12.5 Cover of Aboriginal Cultural Tourism Business Planning Guide

Tourism is of significant interest to growing numbers of Aboriginal communities in Canada. If developed in a thoughtful and sensitive manner, it can have potential positive economic, cultural, and social impacts. Many communities have undertaken tourism development activities to support cultural revival, intercultural awareness, and economic growth. This growth brings jobs and career opportunities for Aboriginal people at all skill levels.

In the Aboriginal Cultural Tourism Business Planning Guide, the following are suggested as the foundational building blocks necessary to run a successful and authentic Aboriginal tourism business:

• Understand the industry, learn about cultural tourists, and develop products carefully
• Ensure experiences are culturally authentic
• Involve the community’s “culture keepers” and Elders
• Practice environmental sustainability
• Prepare an Aboriginal cultural tourism business plan
• Meet visitor expectations through staff training and excellent hospitality, provided from a cultural perspective
• Ensure an effective web and social media presence
• Build personal support networks

The guide also highlights the importance of place to the Aboriginal tourism experience. It suggests that guests leave an authentic tourism experience with a memorable collection of feelings, memories, and images that all contribute to a unique sense of place and help guests understand the culture being shared (Kanahele, 1991). In order to highlight this sense of place, operators are encouraged to reflect on and impart aspects of their culture with the following elements of their business (Aboriginal Tourism BC & CTHRC, 2013):

• Decor such as signage, displays, art, photography
• Company name
• Branding elements such as logo and website design
• Employee uniforms or dress code
• Food and beverage
• Traditional stories shared with guests
• Key words and expressions from the Aboriginal host language shared in guest interactions

These touch points create a richer, and more authentic, experience for the visitor.

As an Elder once stated, Aboriginal tourism businesses showcase “culture, heritage and traditions,” and “because these belong to the entire community, the community should have some input” (Aboriginal Tourism BC & CTHRC, 2013, p. 19). For this reason, the guide suggests operators consider the extent to which:

• Community members understand the project or business as it is being proposed
• Keepers of the culture are engaged in the development of the idea
• The business or experience reflects community values

By following these guidelines, Aboriginal tourism businesses can honour the principles outlined in the Larrakia Declaration and other similar documents.

Figure 12.6 A group of visitors listen to an Aboriginal guide at Head-Smashed-In Buffalo Jump, Alberta

Examples of Canadian Aboriginal Tourism Development

Over the past decades, hundreds of Aboriginal-focused tourism experiences have developed in Canada. Examples include:

• The Head-Smashed-In Buffalo Jump interpretive centre in Alberta
• Northern lights viewing with indigenous hosts at Aurora Village in Yellowknife, Northwest Territories
• Essipit whale watching with the Innu in Quebec
• Driving the Great Spirit Circle Trail of Aboriginal experiences on Manitoulin Island in Ontario

For an in-depth exploration of a Canadian Aboriginal tourism destination, see the case study at the end of this chapter on the Trails of 1885 project. This and other initiatives have been successful across the country, including some in British Columbia, which has begun to emerge as a premier destination for Aboriginal experiences.

Aboriginal Tourism in BC

The Aboriginal Tourism Association of BC (AtBC) was founded in 1996, spurred by a research project that detailed the changing motivations of visitors to BC. It identified that specific target markets were particularly motivated to visit BC to experience local or regional Aboriginal culture. Using this information, AtBC created a work plan, established funding partnerships with governments, developed a membership model, and initiated a range of strategies and tactics outlined in two five-year plans.

Since its inception, AtBC has grown to represent over 150 diverse stakeholder businesses, including campgrounds, art galleries and gift shops, hotels, eco-lodges and resorts, Aboriginal restaurants and catering services, cultural heritage sites and interpretive centres, kayak and canoe tours, adventure tourism operations, and guided hikes through heritage sites (Aboriginal Tourism BC, 2012). It has also proven adept at online promotion and social media. As well, it has become world renowned for its strategic approach to Aboriginal tourism development, which we examine in the next section.

A Strategic Approach to Growth

In 2012, AtBC released its five-year strategic plan, which identified targets for Aboriginal cultural tourism industry success. Its goals by 2017 included (Aboriginal Tourism BC, 2012):

• Increased provincial revenue of $68 million (10% growth per year)
• Employment at 4,000 full-time equivalent positions (10% growth per year)
• 100 market-ready Aboriginal cultural tourism businesses (10% growth per year in all six BC tourism regions)

To achieve these targets, the plan identified key strategies, reviewed and adjusted annually, such as (Aboriginal Tourism BC, 2013):

• Push for market readiness
• Build and strengthen partnerships
• Focus on online marketing
• Focus on key and emerging markets
• Focus on authenticity and quality assurance
• Take a regional approach

Following good overall tourism planning principles, AtBC ensured its plan aligned with Destination BC’s five-year tourism strategy, Gaining the Edge, as well as Canada’s federal tourism strategy. As part of this alignment, recent efforts have placed renewed emphasis on the need for market readiness.

Push for Market Readiness

As we’ve learned elsewhere in this textbook, today’s travellers are more complex than in the past and have higher expectations. Potential guests are web-savvy and have the world at their fingertips. For this reason, it’s important that Aboriginal operators ensure they are sufficiently ready to run as a tourism business.

There are three categories of readiness, each with a set of criteria that must be met (Aboriginal Tourism Association of Canada, 2013):

• A visitor-ready operation is often a start-up or small operation that might qualify for a listing in a tourism directory but not be considered ready for cost-shared promotions with other businesses due to lack of amenities or predictability.
• A market-ready business must meet visitor-ready criteria plus demonstrate a number of other strengths around customer service, marketing materials, published pricing and payments policies, short response times and reservations systems, and so on.
• Export-ready criteria include the previous categories, plus sophisticated travel distribution trade channels to attract out-of-town visitors. They provide highly reliable services to all guests, particularly those travelling with groups.

By educating cultural tourism businesses about these standards, and then creating incentives for marketing opportunities, AtBC helps to raise the bar for BC Aboriginal cultural tourism experiences. Its goal is to push as many operators toward market readiness (the second category) as possible so that they may eventually become export ready alongside other BC tourism experiences.

Authenticity and Quality Assurance

Figure 12.7 The Authentic Indigenous logo, helping consumers choose authentic arts and crafts

Another one of the five-year strategic initiatives is the program to encourage visitors to purchase authentic arts and crafts, not unauthorized knock-offs. The Authentic Indigenous Artisan Program protects Aboriginal artists by identifying three tiers of artwork for active promotion (Authentic Indigenous, 2015):

• Tier 1: The highest level of authenticity. If an artist, or an artist via an indigenous company, designs, produces, and distributes an indigenous art product, it will be permitted to display a Tier 1 Authentic Indigenous stamp or tag. This tag ensures that indigenous artists and craftspeople have been remunerated for their work, while at the same time the integrity of their designs is being protected.
• Tier 2: Allows indigenous arts entrepreneurs to compete in a market where there has traditionally been no indigenous involvement. If an indigenous art product is designed by an indigenous person and distributed by an indigenous person or business, but made outside the indigenous community, it can display a Tier 2 Authentic Indigenous stamp or tag.
• Tier 3: Allows artists to license their creations for production and sale outside of the indigenous community.

FirstHost

Figure 12.8 Cover to the FirstHost program workbook

Another key component of the Aboriginal tourism experience is the host. In BC, the FirstHost program supports the development of Aboriginal hosts who are well trained, know what guests are looking for, and who can help provide an authentic cultural experience. This is a one-day tourism workshop offered through the Native Education College and delivered throughout the province and Canada.

FirstHost was inspired by Hawaiian tourism pioneer, Dr. George Kanahele (1913-2000), who saw the impact tourism was having on indigenous culture and set out to educate the industry that “the relationship between place, host and guest must be one of equality” (Native Education College, 2014, p. 28). Participants learn about hospitality service delivery and the special importance of the host, guest, and place relationship. The program is recognized by Aboriginal Tourism BC, WorldHost, and is funded by the Coastal Corridor Consortium of educators from multiple postsecondary institutions and cultural organizations (Native Education College, 2014). This well-received workshop, delivered by Aboriginal trainers, is another reason Aboriginal tourism continues to grow stronger in the province.

Examples of BC Aboriginal Tourism Development

Aboriginal tourism in BC ranges from arts and cultural attractions to authentic food and beverage experiences to wildlife tours that highlight the spiritual significance of BC’s natural places to Aboriginal people.

Figure 12.9 Ancient totem and mortuary poles at Ninstints, Haida Gwaii

Examples of BC Aboriginal tourism enterprises include:

• The Bill Reid Gallery of Northwest Coast Art in the heart of downtown Vancouver, home of the permanent collection of Bill Reid as well as contemporary exhibitions
• St. Eugene Golf Resort Casino, a First Nation-owned 4.5-star hotel with a golf course and casino, outside of Cranbrook in the Kootenay Rockies
• Cariboo Chilcotin Jetboat Adventures, offering exciting and scenic tours of the Fraser River
• Quw’utsun’ Cultural and Conference Centre, owned by the Cowichan band in Duncan
• Salmon n’ Bannock Bistro, offering authentic Aboriginal food in urban Vancouver
• The village of Ninstints (Nans Dins), a UNESCO world heritage site located on a small island off the west coast of Haida Gwaii

While AtBC members are too numerous to detail here, one BC community is often in the spotlight for its significant tourism activity, thanks to its physical and cultural assets and positive leadership. Let’s take a closer look at this example.

Nk’Mip

The Osoyoos (Nk’Mip) Indian Band (OIB) is part of the Okanagan First Nation located in the Interior of BC. The band is home to about 400 on-reserve members. A main goal of the OIB is to move from dependency to a sustainable economy like that which existed before contact (Centre for First Nations Governance, 2013).

Okanagan First Nations once travelled widely to fish, gather, and hunt. Each year, the first harvests of roots, berries, fish, and game were celebrated during ceremonies honouring the food chiefs who provided for the people. During the winter, people returned to permanent winter villages. The names of many of the settlements in the Okanagan Valley — Osoyoos, Keremeos, Penticton and Kelowna — come from Aboriginal words for these settled areas and attest to the long history of the Syilx people on this land.

Just 40 years ago, the OIB was bankrupt and living off government social assistance. In 1988, it sought to turn the tide on this history and created the Osoyoos Indian Band Development Corporation (OIBDC). Through good leadership and initiative, the band has been able to develop agriculture, eco-tourism, and commercial, industrial, and residential developments on its 32,200 acre reserve lands. It does have the good fortune to be located in one of Canada’s premier agricultural and tourism regions; however, it has also taken a determined and well-crafted effort to become an example of indigenous economic success. The band employs hundreds of people and has annual revenues of around $26 million (LinkBC, 2012).

Figure 12.10 Friendly staff at Nk’Mip Desert Cultural Centre

The OIBDC now manages a number of tourism operations, and visitors to this sunny desert region can stay in the 226-room Spirit Ridge Vineyard Resort & Spa, visit the Nk’Mip Desert Cultural Centre, camp in the Nk’Mip Campground & RV Resort (a 326-site operation open year round), and enjoy visiting Nk’Mip Cellars (the first Aboriginal-owned winery in North America). Site preparation is also underway for a $120 million Canyon Desert Resort, a joint venture with Bellstar Hotels and Resorts located adjacent to the 18-hole Nk’Mip Canyon Desert Golf Course. Future vineyard and resort developments are on the drawing board (LinkBC, 2012).

The area attracts about 400,000 visitors per year, and at peak tourist season there is essentially full employment among the more than 470 members of the Osoyoos reserve. In addition to the core businesses, many secondary businesses have formed. For example, the award-winning Nk’Mip Desert Cultural Centre promotes conservation efforts for desert wildlife and has also helped to create several spinoff businesses, including a landscaping business, a greenhouse for indigenous plants, a website development business, and a community arts and crafts market (LinkBC, 2012).

Conclusion

Examples like Nk’Mip demonstrate that BC is on track to become one of the world’s leading destinations for Aboriginal tourism experiences. Across Canada, First Nations and their partners are using Aboriginal-developed standards to help preserve and strengthen cultures while building economic benefits for their communities. This is directly in line with the global trend toward linking tourism with the need to uphold indigenous rights. When developed in partnership with indigenous communities, Aboriginal tourism can continue to attract visitors, provide quality guest experiences, and honour Aboriginal heritage.

Up to this point, we’ve gained an understanding of multiple sectors of the industry as well as special considerations for professionals in BC. Chapter 13 explores careers and work experience in tourism and hospitality.

Figure 12.11 Sunrise at St. Eugene Mission Resort owned by the Ktunaxa, the Samson Cree, and the Mnjikaning First Nations

References

Aboriginal Tourism Association BC & Canadian Tourism Human Resource Council (CTHRC). (2013). Aboriginal cultural tourism business planning guide. [PDF] Retrieved from http://linkbc.ca/siteFiles/85/files/ACTBPG.pdf

Aboriginal Tourism Association of Canada (as Aboriginal Tourism Marketing Circle). (2013). Aboriginal cultural tourism guide. [PDF] Retrieved from http://aboriginaltourismmarketingcircle.ca/wp-content/uploads/2014/01/AboriginalCulturalExperiencesGuide_2013-s.pdf

Aboriginal Tourism BC. (2012). The next phase (2012-2017): A five-year strategy for Aboriginal cultural tourism in BC. [PDF] Retrieved from www.aboriginalbc.com/assets/corporate/The%20Next%20Phase%20-%20BCs%20Aboriginal%20Cultural%20Tourism%20Strategy%20-%20AtBC.pdf

Aboriginal Tourism BC. (2013). The next phase (2012-2017): A five-year strategy for Aboriginal cultural tourism in BC: Year one report. [PDF] Retrieved from www.aboriginalbc.com/assets/AtBC-5-Year-Plan-2012-2017-The-Next-Phase-Year-1-Keith-Henry.pdf

Authentic Indigenous. (2015). Authenticity tags. Retrieved from http://authenticindigenous.com/authenticity-tags/

Centre for First Nations Governance. (2013). Best practices: Osoyoos Indian Band. Retrieved from http://fngovernance.org/toolkit/best_practice/osoyoos_indian_band

Coates, Ken S. (2004). A global history of indigenous peoples: Struggle and survival. New York, NY: Palgrave MacMillan. p12 ISBN 0-333-92150-X.

Kanahele, G. (1991). Critical reflections on cultural values and hotel management in Hawai’i. Project Tourism Keeper of the Culture. Honolulu, HI: The WAIAHA Foundation.

LinkBC, Federal Provincial Territorial Minsters of Culture and Heritage. (2012). Cultural & heritage tourism: A handbook for community champions. [PDF] Retrieved from  http://linkbc.ca/siteFiles/85/files/CHT_WEB.pdf

Native Education College. (2014).First Host: Offering hospitality skills like nobody else.[PDF] Sample Workbook. Retrieved from www.necvancouver.org/sites/default/files/firsthost_2014_sample.pdf

New Zealand Maori Tourism Society. (2012). Maori tourism. Retrieved from www.maoritourism.net

O’Neil, B., Payer, B., Williams, P., Morten, K., Kunin, R., & Gan, L. (2014). National Aboriginal tourism research project 2014. Vancouver, BC: Aboriginal Tourism Marketing Circle.

Pacific Asia Travel Association (PATA) and World Indigenous Tourism Alliance (WINTA). (2014). Indigenous Tourism and human rights in Asia and Pacific Region: Review, analysis & guidelines. Bangkok, Thailand: PATA.

Trails of 1885. (2015). Home page. Retrieved from www.trailsof1885.com.

United Nations. (2007). UN declaration on the rights of indigenous people. [PDF] www.un.org/esa/socdev/unpfii/documents/DRIPS_en.pdf

Wilson, K. & Henderson, J. (2014, March 3). First Peoples: A guide for newcomers. [PDF] Vancouver: City of Vancouver. Retrieved from http://vancouver.ca/files/cov/First-Peoples-A-Guide-for-Newcomers.pdf

World Indigenous Tourism Alliance. (2012). Larrakia declaration on indigenous tourism. [PDF] www.winta.org/wp-content/uploads/2012/08/The-Larrakia-Declaration.pdf

WWF International Arctic Programme. (n.d.). Code of conduct for Arctic tourists. [PDF] Retrieved from www.panda.org/downloads/arctic/codeofconductforarctictourists(eng).pdf

Attributions

Figure 12.1 Haida Bird by Doug is used under a CC-BY-NC-ND 2.0 license.

Figure 12.2 We Don’t Climb by Steel Wool is used under a CC-BY-NC-ND 2.0 license.

Figure 12.3 First Nations performers during the opening ceremony by Province of BC is used under a CC BY-NC-SA 2.0 license.

Figure 12.4 Animal and ‘native’ cultural products by Toban B is used under a CC-BY-NC 2.0 license.

Figure 12.5 Cover of the Aboriginal Cultural Tourism Business Planning Guide by LinkBC is used under a CC-BY-NC-ND 2.0 license.

Figure 12.6 head smashed in buffalo jump by Roland Tanglao is used under a CC-BY 2.0 license.

Figure 12.7 Authentic Indigenous Logo by LinkBC is used under a CC-BY-NC-ND 2.0 license.

Figure 12.8 FirstHost Cover by LinkBC is used under a CC-BY-NC 2.0 license.

Figure 12.9 killer whale in the foreground by Neil Banas is used under a CC-BY-NC 2.0 license.

Figure 12.10 Osooyos by LinkBC is used under a CC-BY-NC 2.0 license.

Figure 12.11 Cranbrook by Province of British Columbia is used under a CC-BY-NC-ND 2.0 license.

Micki McCartney and Lynda Robinson

Overview

This chapter is divided into three parts. First, we’ll learn the essential steps of career planning. Then we’ll take a look at the types of work experience you can engage in while still at school. Finally, we’ll explore how you can integrate your planning with your education and experiences, and we’ll hear from graduates who have been successful in their career choices.

Figure 13.1 Students from Vancouver Island University win recognition and gain experience at the LinkBC Student Case Competition

Let’s start with a review of the essential steps in the career planning process.

Career Planning

Shepard and Mani define career planning “as an ongoing process through which an individual sets career goals and identifies the means to achieve them” (2013, p. 14). It is through career planning that a person evaluates abilities and interests, assesses values and personality, considers alternative career opportunities, establishes career goals, and plans practical developmental activities.

Career planning requires individuals to understand themselves and their values, interests, and skills. It is also an ongoing process, one that must be repeated with changes in employment and life circumstances. As you gain more experience and knowledge, the process will begin anew.

This section reviews the five essential steps of career planning, which are based on our research and input from industry experts:

1. Conduct a self-assessment
2. Research the labour market
3. Create your career search toolkit
4. Put your career campaign into action
5. Engage in networking

Let’s start at step one.

Step One: Conduct a Self-Assessment

Self knowledge is the key to choosing a career. It can be overwhelming to begin the process of self-assessment. However, if done well at the start, the likelihood of securing work that has meaning, purpose, and fulfillment is far greater. Understanding your preferences, knowing your strengths, and honestly facing the areas you need to develop are the first steps for effective self-assessment.

Rosenberg McKay (2014) identifies self-assessment as “the process of gathering information about you in order to make a knowledgeable career decision” and adds that “a self-assessment should examine values, interests, personality, and skills” (¶ 1). Your values should guide your decision making to ensure a good fit for both you and your employer.

Many people find that over the course of their post-secondary program they naturally become more self-aware. It’s recommended, however, that you take time to do the following in order to facilitate your understanding:

1. Think back to when you were a child. What hopes and dreams did you have for yourself? How have these changed?

2. Develop a profile of your personality type. One helpful way of classifying personalities was developed by Myers and Briggs. You can learn more about their personality types by visiting their foundation at Myers and Briggs Personality Types: www.myersbriggs.org/my-mbti-personality-type/mbti-basics/.

3. Do an internet search for terms like personal value statement and find examples that inspire you. These may include key words such as loyalty, accountability, determination, and passion. Now create your own unique statement that reflects where you are today.

4. Gain a better understanding of yourself by learning how others see you. Ask a close friend, family member, or trusted academic contact to write down 10 key words that describe you. Notice where these are different or similar to the words you chose for your value statement.

5. Go back to the introductory chapter of this textbook and make note of the five key sectors of the tourism industry. With a highlighter or similar tool, choose the two sectors that are the most appealing to you. Why are these of interest? What life experiences or work experience do you have that apply to these sectors? How do they align with your personality type and values?

With this foundation in place, you’re ready to face employment reality by gaining a greater understanding of the labour market.

Step Two: Research the Labour Market

Whether you are career planning for the very first time or you are trying to change careers, gathering labour market information is necessary to ensure your education and training are relevant. Keep in mind that a career is distinct from a job. A job can be a part-time or short-term position, whereas a career is work you plan to explore for the length of your professional life, with each employment opportunity building on the last.

Learning as much as you can about careers within the tourism and hospitality industry will allow you to make good decisions about your future. Some of the activities you can do to complete your research include visiting job boards to identify demand and following companies and sectors in the media. Let’s look at these concepts in more detail.

Visit Tourism and Hospitality Job Boards to Identify Demand

It’s not enough for you to want to work in a certain field — you have to know what types of jobs are currently being offered. By visiting job boards you can get a sense of which geographic areas have more opportunities, how much different jobs pay, and what kind of experience is required.

Websites you can use for this search include:

• The go2HR job board for tourism and hospitality jobs in BC: www.go2hr.ca/jobboard
• Hospitality Works (H Careers): www.hcareers.ca
• HotellerieJobs: www.hotelleriejobs.com/en
• Your local Craigslist classified listings: www.craigslist.org/about/sites
• Listings specific to resort communities (e.g., Whistler: Whistler Job Board: http://whistlerchamber.chambermaster.com/jobs)
• Career pages for companies like Fairmont Hotels Careers (www.fairmontcareers.com), and JOEY Restaurants Careers (http://joeyrestaurants.com/careers/)

Make note of any interesting positions, and pay attention to gaps. Compare this to your self-assessment. Where are the opportunities lining up? What changes might you have to make to advance your career? For example, if you’d like to stay in the same city, but see no jobs posted that match your needs, it might be time to look elsewhere.

Follow Companies and Sectors in the Media

Make it a point to follow companies and sectors of interest to you in the media. You can do this by using a search engine to set up notifications (e.g., Google Alerts) about sectors (e.g., restaurants, ski resorts), and following companies on social media (Twitter, Facebook, LinkedIn, Instagram). You can also monitor news from industry associations to read their commentary on issues and trends affecting specific sectors of the industry and/or geographic regions. This will help you identify growth patterns, understand job market trends, and gain an edge should you have the opportunity to interview.

With this information in hand, you’ll be ready to create a plan.

Step Three: Create Your Career Search Toolkit

You have completed your initial research, and now you need to get down to business! This step involves getting ready to approach employers about specific opportunities.

Identify, and be prepared to provide evidence of, the attributes and skills you possess that would be attractive to an employer. It can be helpful to review these in three categories:

1. Personal attributes: describe what you are like as a person/employee (e.g., your values, personality type, personal qualities, and characteristics)
2. Technical skills: skills and knowledge required to perform specific work (e.g., how to use restaurant Point-of-Sale systems, hotel reservations systems, or other computer software)
3. Transferable skills: skills required to perform a variety of tasks that can be transferred from one type of job to another (e.g., the ability to read a balance sheet and prepare a budget)

Use the list of your skills and attributes when you describe yourself in your documents.

Figure 13.2 Consider a branded set of tools like resumes and business cards to help you stand out from the crowd.

A standard set of job search documents includes:

1. Cover letter: a long-form document of one page that tells a story, illustrating how your skills and experience make you an ideal candidate for the job.
2. Resume (sometimes called a curriculum vitae or CV): a point-form document, typically two pages, that includes your career objective, relevant experience, education, skills, and interests.
3. Reference list: identifies three or four professional contacts who have worked with you, and can vouch for the quality of your work.

Be sure to update these documents each time you apply for a position and customize them to the opportunity at hand.

You may also want to consider using social media tools and resources to promote yourself. This may include creating a LinkedIn profile, making a professional (rather than personal) Facebook page, and using Twitter and Instagram to communicate with companies. Some job seekers also use a professional e-portfolio to demonstrate their skills, knowledge, and abilities. Showcasing your experiences with an e-portfolio is one way to stand out from other applicants (Lorenzo & Ittleson, 2005).

Step Four: Put Your Career Campaign into Action

Now it’s time to make a list of companies to target, and to approach them.

We’ve already addressed how you can find opportunities by scanning postings on websites like the go2HR job board. This is a great start, but most work opportunities are found in the hidden job market, which consists of jobs that are not advertised or made public in traditional ways. Many individuals find work in BC’s tourism and hospitality industry by being referred, getting hired by someone they already know, or starting at an entry-level position and waiting for future growth opportunities.

If you don’t have any connections in tourism and hospitality, make them! List all the organizations you’re interested in working for. Now find some key contacts to meet with. These might be:

• The person responsible for hiring within the organization (as noted on its website or in its directory)
• An alumni from your program already working for the company (ask a faculty member to connect you)
• The person who currently works in your ideal role within the company
• A personal contact (family member, friend, or acquaintance) working at the company

Approach your potential contact to set up an informational interview. This is a session where you make contact with individuals who can use their first-hand experience to educate you about a particular role or company.

Write a short script that will help you remain focused and appear professional as you embark on your first call or send an initial email. Here’s a sample:

I have five years’ experience working in the tourism and/or hospitality field, mainly holding front-end positions. I have increased return visitor numbers and received continuous feedback about my outstanding customer service focus. I am wondering if you have 10 minutes to speak with me.

Your script will change depending on who you are targeting. Prepare a list of questions you want to ask. Remember, at this stage, you are not asking for a job; you’re asking for advice and gathering information. Don’t ask obvious questions about information already available on the company’s website or in its print material. Some questions might include:

• What are three words you would use to describe the culture of this company?
• In the time that you’ve worked here, would you say the company has grown? What has changed? What has stayed the same?
• What is a day-in-the-life of someone in (name a role) at this company?
• What salary range is available for entry-level employees?
• What types of training and career path support is offered to employees?
• Are there any other people I should be talking to about this? If possible, could you give me their contact information or introduce me to them?

The conversation should be professional but informal in nature, and many of your questions will be answered in the natural flow of the conversation. Take notes as you move through the interview, and take a minute after the interview to fill in details you may have missed while you were there.

After the session, always send a thank-you note. Thank the person for his or her time, and add something specific you learned in the interview that you believe will be helpful as you navigate your career. Sending an email thank-you is fine, but  sending a written card will help you stand out.

If you’re given the name of someone else to contact, or you are asked to provide further information, be sure to follow through. This is your opportunity to make a good impression on your contact, and the organization.

Step Five: Engage in Networking

Developing your professional network as an emerging professional in tourism and hospitality is essential. Just as you need to continue to learn and develop your skill sets, you need to develop and nurture your network; it’s an investment in your future. Some ways to do this include:

• Conducting multiple informational interviews (covered in the previous step)
• Maintaining contact with academic classmates/faculty
• Attending and presenting at conferences
• Participating in case study competitions and other academic contests
• Using social media networks and groups
• Maintaining good relationships with coworkers at your current job, and staying in touch with people when they leave
• Asking family and friends to introduce you to tourism and hospitality professionals in their network

Remember that networking is equally about who you know and who knows you; it works both ways. Be generous with your contacts, information, and resources. As a new professional, you may not have a developed network, but you can offer your great attitude and valuable ideas, and you will soon gain a reputation as someone who contributes to the field.

Figure 13.3 Students eagerly await the start of a networking event

Now that you have a sense of the steps needed to plan your tourism or hospitality career, let’s have a look at an important tool: work experience, which you can gain while still at school to propel you to your ideal career much faster.

Work Experience

Experiential learning is “based on students being directly involved in a learning experience rather than being recipients of ready-made content in the form of lectures” (ContactPoint, 2014a). Experiential learning is:

• Action-oriented
• Learner-centred
• Geared toward process, rather than outcomes

In this way, knowledge is created as the learner moves through the experience.

Through your educational program, you may be able to participate in a variety of different learning experiences in tourism and hospitality. Students who participate in a learning experience outside of the classroom are more likely to enter the field with both academic and practical workplace skills and knowledge, and have more opportunities for career advancement.

Let’s have a look at some of the common types of work learning experiences:

• Co-op education
• Internship
• Practicum
• Service learning
• Volunteering

Each of these is defined below.

Co-op Education

Co-operative, or co-op education refers to “a structured program that integrates work experience in a student’s field along with academic studies by alternating in-class learning with periods of actual work” (ContactPoint, 2014b, ¶ 1). The term reflects the co-operative relationship between students, schools, and employers.

Internship

An internship is a temporary on-the-job experience that is “typically offered to students or inexperienced workers” (ContactPoint, 2014c, ¶ 1). It is generally project-oriented, and supervised.

The intern should have specific learning goals against which he or she can apply experience about a particular industry or field of work. The term may be paid or unpaid, and may lead to permanent career opportunities with the organization (ContactPoint, 2014b).

Practicum

A practicum is “applied learning that provides students with practical experience and interaction with professionals from industry and the community outside of school” (ConnectEd, 2011, p.3). The goal is to support career readiness and help enhance:

• Higher-order thinking
• Academic skills
• Technical skills
• Applied workplace skills

The experience may be paid or unpaid.

Service Learning

Service learning is defined as a course-based, credit-bearing educational experience in which students:

• Participate in an organized service activity that meets identified community needs
• Reflect on the service activity to gain further understanding of course content, a broader appreciation of the discipline, and an enhanced sense of civic responsibility (Bringle & Hatcher, 1995)

Volunteering

Volunteering involves performing a service without pay in order to obtain work experience, learn new skills, meet people, contribute to community, and contribute to a cause that’s important to the volunteer (for example, helping animals, supporting elderly people, working for an environmental cause) (Pickerell, 2014).

Benefits of Work Experience Programs

Students who have completed a formal work experience component benefit from a supportive partnership between the educational institution, the employer, and themselves. This partnership encourages community stakeholder investment, student learning opportunities, professional networks, as well as opportunities for employers to participate as co-educators.

Some institutions may work with an experiential education coordinator to ensure a particular position meets the school’s criteria. Depending on your program, remuneration for work can be by the hour, by salary, by a stipend, as in-kind contributions (experiences or services from the business), or as a volunteer assignment. The educational institution may monitor your placement and ask you to complete an assignment where you reflect on the work experience. Some programs may have an evaluation component and a supervisor who supports the student’s learning. Students are also evaluated by the employer, and they will have a supervisor whom they report to directly.

Most often, for students to participate in a work experience program, they are required to maintain a certain grade point average (GPA) set by the school. Often students are also asked to establish learning goals prior to starting their work experience.

If your program doesn’t offer a formal work experience program such as a co-op, internship, or practicum, you can still gain valuable hands-on learning through part-time work and volunteer opportunities. Because tourism is the number-one employer of youth in BC, you can find a part-time job to develop your skills and gain an entry-level opportunity to join the industry.

Whatever experience you engage in, be it formal, or informal, it’s important to:

• Explore your employer’s organizational culture and social norms
• Do your best on the job
• Gain conflict management and resolution skills

These three keys come directly from BC tourism and hospitality employers (LinkBC, 2014), and are explored in the next section.

Integrating Planning with Education and Experience

The final career planning element we’ll explore in this chapter involves integrating your education and work experience. By applying classroom learning to the field, and then bringing lessons from your workplace back to the classroom, you can see key concepts in action.

Research Organizational Culture and Social Norms

Each organization has its own culture and social norms. Organizational culture refers to “the customs, rituals, and values shared by the members of an organization that have to be accepted by new members” (Collins English Dictionary, 2012), and  is expressed through its mission statement, vision, beliefs, language systems, and processes. Social norms refer to the way individuals in the organization interact, communicate, and generally behave with each other.

Figure 13.4 Meet with, and talk to, as many prospective employers as you can. Here, students are talking to a representative from West Coast Sightseeing.

You will want to understand the culture of an organization before applying for a job there to ensure your values are congruent. Find out what’s important to the organization by researching the business. How does it present its public face?

Asking questions of a potential employer about the organization’s culture will help you assess whether it is a good fit for you. You can do this by asking employees in the organization during the informational interview; or alternatively, in a formal job interview.

Performance on the Job

This is your time to shine — no matter what role you’ve been assigned. In addition to respecting and working within a company’s culture, once you start your position, it’s time for you to show initiative (Iannarino, n.d.). Demonstrate an interest in learning and contributing to the organization’s goals and objectives and you will stand out from other employees.

Act without waiting to be told what to do and persistently follow through on work responsibilities, regardless of the obstacles. Think about ways to improve operations, and come up with new ideas, while presenting these in a way that shows you respect management’s expertise. It’s up to you to signal to your employer that you’re someone who can be counted on and you have leadership potential. Some ways of showing initiative include:

• Asking to observe a meeting
• Asking to shadow a manager in another department
• Reading through company policies and plans, and asking questions about them
• Offering to bring your skills to the table to make a difference, such as setting up a social media account for the company or creating a training manual for future students in your position

Often, you’ll be able to take advantage of project work at school to accomplish some of the above.

Practise Conflict Management and Resolution

The majority of tourism and hospitality employers stress that conflict management is an essential skill in this customer-service driven industry (LinkBC, 2014). It’s up to you to practise these skills at your workplace.

In most conflicts, the ultimate goal must be to find a resolution. Avoiding or ignoring conflict is not an effective strategy. While resolving conflict can be uncomfortable, unresolved conflict actually makes the situation worse. Generally, conflicts have more than one cause. How you choose to resolve conflicts will ultimately demonstrate your ability to be professional and move upward in your career.

Consider the following three steps to resolving conflicts both at work and in the classroom.

Listen

If at all possible, try not to take the situation or comments personally. Do not make assumptions about people’s motivations. Jumping to conclusions adds to the conflict and creates more tension and issues to work though.

Consider that if there is a conflict, you might not have fully understood the issue or your part in it. While you may not like the style or approach of the person you’re interacting with, set the goal of listening with acceptance with the intent to resolve the conflict. Convey that you are listening respectfully through your body language and tone of voice, and don’t interrupt. If there are several people involved, let everyone have a chance to speak.

Reflect and Summarize

If you need to, silently count to 10 in your head to give yourself the time to respond appropriately. Acknowledge your commitment to resolving the conflict, and clarify how the other person is feeling about it. When people feel listened to, they are often willing to take the first step toward trust, which then creates willingness to work through the issue. Summarizing what the other person has said allows you to ensure that you’ve fully captured his or her position.

Focus on appreciating what the other person is saying and thinking to understand the source of conflict. Ask what the other person believes would resolve the conflict. Focus the conversation on mutually resolving the issue.

Respond

Allow each person the opportunity to explore solutions equally. Take a break from the process if you need to, and come back to the conflict when you feel refreshed. Often the solution is through compromise, because no one is all wrong or all right in any given situation. Each time you’re given the chance to respond, do your best to keep language neutral.

By maturely moving through the process of listening, reflecting, summarizing, and responding (and sometimes going back to the start again), you’ll not only demonstrate your workplace potential, but gain valuable skills for your personal life.

While adapting to organizational culture, demonstrating strong on-the-job performance, and practising conflict resolution are important, there are many skills to be learned in the workplace. Others include the ability to apply critical thinking, acting as a global citizen, and working as part of a team. With this in mind, let’s have a look at success stories in our industry — graduates who possess these skills and attributes, and have used them to propel their careers forward.

Tourism and Hospitality Success Stories

Just a few years ago the professionals highlighted in this section were students in the classroom. Here, they tell us first-hand what you need to know in order to grow in BC’s tourism and hospitality industry. These success stories span the following sectors:

• Accommodation (account manager, rooms division coordinator)
• Recreation and entertainment (project coordinator, conference services manager, entrepreneur and small business owner)
• Travel services (long-range planner, travel designer, industry and communications services manager)

As you read their stories, you’ll see that many of the themes explored in this chapter are echoed in their advice. Please note that these profiles were current as of spring 2015 – some of these grads may already be on to the next big thing in their careers!

Accommodation

Brock Martin, Account Manager

Figure 13.5 Brock Martin

Brock manages accounts for Canada Booking.com Online Reservations Inc. He graduated with a bachelor of hospitality management at Vancouver Community College in 2010. Brock says:

I oversee more than 300 accommodations on Vancouver Island and am their point of contact for day-to-day support and for assisting them in maximizing their listing’s potential with Booking.com. When I moved to Vancouver in 2004, I started my first hotel job at the Westin Bayshore as a banquet server. I still remember my first day; we had to serve a dinner for over 1,200 people, and I remember that despite how crazy it was I knew this was the industry for me!

From there, I moved to the Pacific Palisades Hotel in banquets, and then I was given an opportunity to move to the front desk. I remember thinking at first that I didn’t belong at the front desk as I had always just done food and beverage. I did not think I would fit the position. Well, I was wrong! I  immediately knew I loved the interactions with the guests.

I progressed with my career, moving from a front desk agent to an assistant front office manager, where I stayed until the hotel unfortunately closed its doors in 2010. Following the Palisades, I held various front office management positions with Coast Hotels and Delta Hotels in Vancouver, Nanaimo, and Whistler. In 2013, I was presented with an opportunity to join Booking.com as an account manager, where I am presently working.

Taking courses related to hospitality management and tourism will really assist in developing your career. Once in a workplace setting, continued education is key. Look for opportunities for cross training and job shadowing, and ask Human Resources about internal training programs to further your understanding.

Students entering this industry need to have a passion for guest services and for helping people. They need to be able to think quickly and be a good problem solver. This is a fast-paced, ever-evolving industry and doesn’t fit someone who likes routine. No two days are ever the same, and that is what I love! Remain flexible and do not be afraid to try new things. Have an open mind and challenge yourself to think outside of the box.

Specific things students can do to get ahead include networking, further training, and volunteering. Remember, the industry is very large, yet small at the same time. Take opportunities to volunteer as these are great networking opportunities as well. I couldn’t picture myself in any other industry. It is challenging, yet rewarding, and best of all, it is a lot of fun!

Katie Clarke, Marketing Coordinator

Figure 13.6 Katie Clarke

Katie works at the Parkside Hotel & Spa in Victoria, BC. She graduated with a diploma in hospitality management from Vancouver Island University in 2011. Katie says:

My initial hotel job was with the Fairmont Empress housekeeping department during my first co-op work term, a temporary two-month position after which I returned for my second year of schooling. After graduating from Vancouver Island University, I completed my last co-op semester by working at the Queen Victoria Hotel and Suites as a guest services agent. My employment continued there after my co-op term was complete, and lasted until the hotel was sold in October 2012. I left with a wealth of knowledge in guest services.

I began working at the Parkside Hotel & Spa at the time it was purchased by a group of Vancouver Island local investors. I started in reservations, which was a new department in the early stages of development, and my skills and qualifications played a large role in assisting with the department’s foundations. I worked as a reservations agent for seven months before I was promoted to the position of rooms division coordinator. In this position, I assisted in supervising the department, as well as taking on some marketing responsibilities such as keeping the hotel website up-to-date, social media, print materials, and much, much more. The role became a jack-of-all-trades position and was a great experience! In fact, I used what I learned in that role to obtain my current position of marketing coordinator.

My advice for students is that any related education will always help get your foot in the door of a hotel. All applicable work experience, skills, and knowledge can also be an advantage. If you are a hard worker, a team player, and willing to help out when other departments need it, you will be successful in any job you do.

Students should understand that the hospitality field can be a career. Some people view a job in the hospitality industry as temporary or seasonal employment, but it can be a career with many exciting opportunities if you stick with it. The great thing about working in a hotel is that there are so many different departments to explore. The options are endless.

Networking can provide an advantage in this industry. If you contact your tourism bureau, it can connect you to organizations to help you further your industry network. Creating great workplace relationships also fosters getting ahead in any industry. Be sure to keep up with new training and volunteering, as that can be a great advantage, and most workplaces encourage it!

Though every job will come with its tough days, push past them as there are so many better days ahead! Work hard and it will pay off!

Recreation and Entertainment

Ana Rowinska, Project Coordinator

Figure 13.7 Ana Rowinska

Ana works for MCI Group Canada. She has multiple credentials including a hospitality restaurant management diploma from Douglas College (2005), an Event Marketing Association certificate from BCIT (2008), and a bachelor of tourism management from Capilano University (2013). Ana says:

My love for travel and hospitality were key reasons I took the hospitality restaurant management diploma program at Douglas College. After receiving my diploma, I decided to focus on event marketing and enrolled at BCIT for further training.

Students interested in getting into events and or event marketing need to be able to multi-task, be organized, and have a hard work ethic. Both education and experience are important to work as an event coordinator. You need to know the ins and outs of the industry by working in events, and you also need to understand the back-end strategies of how to implement, organize, and plan events.

The events industry is not your typical nine-to-five job. Long workdays are common, and you can expect to sometimes work 16 or more hours in one day to get the job done. Events can happen any day of the week, at any time. Commitment and the ability to be flexible is key as you are always the first one on scene and the last one to leave. You need to have patience, be organized, and be able to deal with stress.

Many students expect to be hired at at a high level right after graduation, but in truth, most will be entering the workforce in their respective fields in an entry-level position. You’ll need to be prepared to work toward gaining experience with your company before you can move into a supervisor or manager position. My advice is to work hard, learn, and ask questions, and you will succeed.

Volunteering or working part time with events is key as you will not only gain valuable industry experience, you will also be networking with your future peers. Experience is invaluable in our sector, so the more events you work or volunteer in, the more opportunities you will have to expand your network and meet key stakeholders in the event industry.

To be successful, you need to be organized, have excellent communication skills, and be able to handle stress and pressure. Don’t get discouraged if things don’t happen exactly like you planned; life throws you curve balls, and it’s how you deal with those curve balls that allows you to succeed in our industry.

Throughout my career, I have needed to make decisions on what was next for me. You never know which job may lead you to where, so treat each job as a stepping stone to move ahead in your career.

Christine McCann, Senior Conference Services Manager

Figure 13.8 Christine McCann

Christine is in senior management at the Fairmont Chateau Whistler. She graduated from the Douglas College program in hotel and restaurant management in 2006. Christine says:

I started at the Fairmont Chateau Whistler as a SWEP (student work experience) student in the banquet department. From there, I became very interested in the organization and execution of events, weddings, and conferences. During my time as a banquet server, I was able to cross train with conference services, allowing me to gain insights into the skills and knowledge required to be a successful member of the that team. When a position opened up for a conference services coordinator, I was overjoyed to receive a role as part of this fantastic team! Seven years have passed, and I am now in the position of senior conference services manager, taking care of many large groups throughout the year.

Event and conference planning is a very interesting blend of roles: being on the floor with clients and groups but also completing many administrative tasks and paperwork to ensure plans are effectively communicated. A positive attitude, passion for creating outstanding events, and an eye for detail are three key qualities needed. Members of my team have moved here from many other departments, including banquets, front office, sales, and food and beverage; however, having a base of operations experience is the normal pathway to a position in conference services.

Being successful in a conference services role takes passion and an understanding and appreciation for the guest experience. We are ambassadors for our brand to our guests — 100 to 1,000 guests at a time — and it is important that we ensure each one feels a special connection to our venue and location.

A positive attitude, willingness to learn and passion for whatever role you choose will always help you on the road to success.

Volunteering is a fantastic way to try out new roles and meet great contacts. Hands-on experience can be invaluable in the future. Continuing to seek knowledge, through training, education, industry events — whatever method is interesting for you — will also be beneficial.

Love what you do, work hard, and listen!

David Woolridge, Entrepreneur and Small Business Owner

David is the owner and founder of Ridge Wilderness Adventures Ltd. He graduated from the outdoor recreation management program at Capilano University in 2002. David says:

I love people and I love being outside, so I searched for positions that would fill that need. I have worked at canoe rental companies, guiding outfits, first-aid schools, retail shops, construction, and anything else that I could get my hands on.

I recommend students get into the field by one of two means: enter a specific program like the one at Capilano University, or contact a company that does the work they would like to do and apply. If applying directly doesn’t work, ask the company what it is looking for in a person to be employable.

This work is for those who don’t like to have a fixed routine and who thrive on problem solving and like to do different things all the time. If you prefer a set schedule and set pay, it is probably not for you.

It’s an amazing job where we get to work at what we love. To succeed in this line of work, attitude and availability trump aptitude. If you would like to have a lucrative career in the outdoors, you need to possess an outgoing, friendly, hardworking attitude. This style of work is not nine-to-five; in fact, it’s the opposite of that. Your ability to work when the work is there is key to success. Obviously, you need to have the ability to do the work, but 9 times out of 10, if that’s all you have you will not succeed.

This industry is all about the people that you know. Go to every event and course you can to meet people and get known. Most places will give you the training; you need to do the work if your attitude is right, so sort out what you need before you start.

If you love the outdoors, love people, and want to have fun for work, this is what you should do.

Travel Services

Cleopatra Corbett, Long-Range Planner

Figure 13.9 Cleopatra Corbett

Cleopatra works as a planner for the City of Vernon. She holds a bachelor of tourism management from Vancouver Island University (2004) and completed the urban design certificate at Simon Fraser University in 2012. Cleopatra says:

My first experience in community planning came during my third-year co-op work term as a planning assistant with the District of Ucluelet. I instantly fell in love with the profession: working with local residents, businesses, non-profits, and elected officials to realize a desired future for the community. Upon graduation, I continued to work in Ucluelet, followed by Tofino, Golden, and now Vernon, all in British Columbia.

In my field the desired skill set includes planning, communication, collaboration, facilitation, public speaking, and report writing. For knowledge, you need planning history and theory, community development, environmental stewardship, marketing, and statistical and research methods. As for education, you want to study planning, geography, urban design, tourism, recreation, history, and law.

Community planning is incredibly challenging and rewarding work. Put simply, your work can have a tremendous impact on the environment and the quality of life for residents in your community. You help the community dream about a desired future and then develop policy to make it happen.

My advice would be to have mentors you respect and admire, and to meet with them regularly to ask questions and look for advice. Always do your best, work hard with integrity, be kind, tell the truth, and do what you love.

Get experience before graduating through volunteer work, internships, and/or co-op work terms. Also, try to apply course projects in university to real-world projects for businesses, non-profits, or governments in order to gain meaningful applied experience. Interview people who are in positions that interest you; ask questions and don’t be afraid to ask for help.

If you are willing to move, you can get any type of job you desire. Being mobile enhances your opportunities. Practise life-long learning and strive for a healthy work-life balance. Follow your bliss and make the world a better place.

Marie-Catherine Lapointe, Travel Designer Team Lead

Figure 13.10 Marie-Catherine Lapointe

Marie-Catherine is a travel designer with Discover Holidays Inc. She graduated from Capilano University with a diploma of tourism management in 2012. Marie-Catherine says:

When I graduated, I knew that I wanted to work in travel services as a central part of the industry with touch points in every other sector, so when a posting to be a travel designer for a receptive tour operator came up, I jumped at the chance. I was excited to be working to bring clients from all over the world to Canada, and I took in every opportunity to learn about the many aspects of the company, including product, marketing, and sales.

Students wanting to get into the tour operator sector need to have a tourism education to really understand the intricacies of the sectors in the industry, as well as skills in customer service, sales, cultural practices (particularly dealing with international clients), marketing, and a real passion for the products they are selling. Teamwork is crucial on our small team, as is being intrinsically motivated to provide the best experience for clients.

First, receptive tour operators are not travel agents, nor do they operate the tours. We work with travel agents, wholesale agents, and occasionally with clients directly. However, it is mainly a B2B model. Receptive tour operators are in a dynamic workplace, with opportunities to learn and gain experience in other sectors and fields, as well as hone customer service and sales skills.

My advice is to really take hold of every opportunity that is presented, and to never stop learning about the industry. This is a very social industry and building a large solid network can help with future opportunities. Build up your customer service experience, whether it’s through front-line jobs or volunteering, and attend networking events. Schools often host or sponsor these, and students should be attending them all.

This is a really fun industry, and with so many sectors and positions available, I really believe that there is something for everyone in tourism.

Jody Young, Industry and Community Services Manager

Figure 13.11 Jody Young

Jody works for Tourism Vancouver Island. She holds a bachelor of tourism management from Vancouver Island University (2008). Jody says:

After graduation, it took a year and a half before I got my big break into the industry. I’m thankful for the time it took for my career to really start as it provided me the opportunity to travel around Southeast Asia. I started at Tourism Vancouver Island in an entry-level position as the distribution coordinator. After just one year in the role I was promoted to industry services coordinator where I was coordinating the association’s annual conference and AGM and conducting accommodation inspections. After another year and a half, I was promoted again to management level within the organization to the role I am currently in. As industry and community services manager, I oversee many portfolios for the organization such as community tourism development, event management, research, and promotion of the value of tourism.

The tourism management degree program at Vancouver Island University definitely set me up for success in this role. I highly recommend completing the four-year degree and getting as much hands-on, real-world experience that you can while completing your education. Employers will be looking for proven successes and workplace skills, not just completion of courses.

Although the tourism industry is vast with many desirable, well-paying career opportunities, it is still fairly new. The industry has room to grow on communicating that it is a key economic and social contributor to our province and country.

I would advise students to jump at an entry-level opportunity as it will be your door to advancing in your career in a particular organization. Once you’ve got your foot in the door, demonstrate your ability and you will soon find bigger opportunities presented to you. If I didn’t take the entry-level opportunity that was presented to me, I wouldn’t be in the role I am in today.

Students can get ahead by taking advantage of student rates at industry events. By attending these industry events you will rub shoulders with the folks who are at the top of the game in this industry and meeting potential future employers. Look for opportunities for mentorship programs or internships to gain that workplace experience as well.

Conclusion

As you can see, successful tourism and hospitality careers depend on reaching out and meeting people (networking), gaining practical experience, having a great attitude and work ethic, and committing to ongoing learning about the world, the industry, and yourself.

With diligence and a sense of exploration, you can launch your dream career in tourism and hospitality, today. Remember that career planning is an ongoing process — the more you practise the steps in this chapter, the more likely your success.

Now that you’ve explored the five sectors of tourism, special considerations, and your own place in the industry, it’s time to deepen your understanding. Chapter 14, on globalization and trends, will help you appreciate the big picture of tourism and hospitality.

References

Bringle, R.G., & Hatcher, J.A. (1995). A service-learning curriculum for faculty. Michigan Journal of Community Service Learning, 2, 112-122.

Collins English Dictionary – Complete & Unabridged 10th Edition. (2012). Organizational culture. Retrieved from http://dictionary.reference.com/browse/organizational culture

ConnectEd. (2011). Career practicum: A work-based learning strategy. [PDF] The California Center for College and Career. Retrieved from http://www.connectedcalifornia.org/direct/files/LLAWBLCareerPracticum_FINAL_10-5-11_noLLA%20logo.pdf

ContactPoint. (2014a). Experiential learning. Retrieved from http://contactpoint.ca/wikis/experiential-learning/

ContactPoint. (2014b). Co-operative education. Retrieved from http://contactpoint.ca/wikis/co-op-education/

ContactPoint. (2014c). Internship. Retrieved from http://contactpoint.ca/wikis/internship/