Trends in the Alberta Tourism Industry

Where is the market going?

There are several specific strategies that will be used in order to increase tourism revenues in Alberta from $4.78 billion in 2001 to $ 6 billion in 2005. Strategies focus on:

  • Increasing destination awareness and image.

  • Effectively positioning Alberta's tourism product to increase consumer demand from each targeted geographic market.

  • Influencing industry operators to support these objectives with their own marketing efforts.

Alberta will invest in seven strategic priorities over the next three years:

  1. Increased destination awareness in target markets.

  2. Focus marketing efforts on product positioning and sales in cooperation with industry.

  3. Increase visitation from key overseas and long-haul North American markets.

  4. Increase inter-regional travel within Alberta by Albertans.

  5. Diversify our sources of tourists and expand tourism to all regions of Alberta over four seasons.

  6. Maximize marketing resources in partnership with the private sector and other tourism agencies.

  7. Develop and consolidate support systems for Alberta tourism marketing.

Market Trends

Consumer market needs are constantly changing, creating new demands for:

  • quality and style of product
  • more efficient and trained management and staff
  • vacation experiences that live up to their sales pitch

Some of the key trends affecting Alberta's tourism industry over the next few years are:

  • Demographic Shifts

    • For the next 20 years the residents of developed nations aged 55-75 will increase substantially. These individuals will have the time, the discretionary income and the desire to travel.

    • North American markets are aging, as the baby boomers mature. This is creating a new set of vacation needs and experiences, and pricing structures to match a market that is healthier, has increased disposable income, and is retiring earlier.

    • The baby boomers market will also contribute to the growth of the learning vacation market. This niche product attracts the highly educated, well-traveled baby boomers.

  • Consumer Attitude Shifts

    • The "Getaway" Market. As a result of a time-pressured society increasingly seeking relief when it is possible, more frequent, shorter vacations [break-a-tions] are the result. An increase in "cross-over" trips, combining business and pleasure are evident. While the pattern has been to shorter distance travel, recent trends indicate that people will travel long distances on short breaks that pamper or represent a unique experience.

    • Travelers everywhere are seeking out unique and diverse experiences that are authentic to the place they are visiting.

    • Increasing acceptance of the value of other cultures will greatly broaden the range of facilities, events and attractions of potential interest to tourists.

    • There is less large group travel. Smaller groups and fully independent travel represent markets that are harder to identify, develop products to support, and market to. There is an increase in specialized or niche markets that want specific products and experiences. This is changing the development focus from large resorts and hotel properties, to more intimate facilities and services such as lodges, country inns, bed and breakfasts, and small all-suites hotels. Tour products are becoming more flexible, less structured and customizable.

    • A growing area of tourism development in many destinations will be organized travel that protects tourists from crime, health and security threats.

    • An increased emphasis on special interest tourism - such as cultural, educational and professional development travel - may greatly strengthen and enrich the meaning of the travel experience.

    • An increased emphasis on "human relationships" may encourage new forms of tourism in which contact between hosts and guests is less superficial. People are becoming as important as places, and the collecting of interactive, novel experiences versus site visits or things is growing in interest.

  • Financing Shifts

    • Financing for all sizes of start-up tourism businesses will continue to be difficult to obtain in spite of low interest rates. The result is more reliance on equity investment and non-traditional sources of capital from external sources, including foreign investors.

    • Many high-quality public facilities and attractions that have traditionally been supported and/or subsidized by governments will come under serious funding pressures.

    • There will be new opportunities for innovative financing for mega-projects and mega-developments that enjoy the support of the residents of a destination.

  • Industry Shifts

    • The human resource problem: there is a continuing and growing need to increase the supply of personnel and to enhance their professionalism. Sensitivity towards the differences in requirements and interests of market segments will increase.

    • Regional political and economic integration / cooperation will predominate.

    • The power and success of franchises and enterprises with globally recognized brand names will increasingly put pressure on small, independent travel and tourism operators.

    • Electronic technology and the Internet are changing the way the industry and its customers do business. There is an increasing demand for timely, accurate, and relevant information directed to the business owner and consumer.

    • Firms that can read, anticipate and respond to the specific needs / desires of high-quality niche or "special interest" markets in innovative ways will have great opportunities for success. "Egonomics" is the watchword where people are willing to pay for personalization, a product made especially for them.

  • Product Development Trends

    • There is recognition that there are finite limitations to tourism development, in terms of both physical and social carrying capacity of destinations. Sensitivity towards the scale and design of developments to limit their impact on the environment will be the recommended approach.

    • Canada's national parks system is under duress. Parks Canada is facing increasing pressure to strengthen its' ecosystem protection mandate and reduce the impacts of tourism and transportation within the parks.

    • The tourism planning and development process will be increasingly mindful of the need for meaningful public involvement and input. Concern for and consultation with people who are immediately affected by new facilities and visitor inflows will gain prominence. Residents' responsive tourism is the watchword for tomorrow: community demands for active participation in the setting of the tourism agenda and its priorities for tourism development and management will increase in importance.

    • Event-based tourism is an important element of the tourist market and will be further exploited in the future in terms of more festivals, large concerts, sports competitions and other events that attract large influxes of people.

    • Some mountain communities are taking a more environmentally sensitive approach to issuing planning and development approvals for tourism projects and activities.

    • Virtually all future tourism developments will be constrained by the need for environmental sensitivity.

    • Aboriginal tourism: Increasingly our markets want to learn about indigenous people of the destination to which they are traveling. But this does not mean they seek only ceremony or superficial contact with people. Some may want to experience "how they lived". Most will want to experience the cultural and historic sites and places of Aboriginal people, meet and interact with the people in an authentic setting and purchase craft and art.

    • There is an increasing demand for vacations that provide for a sense of renewal and experience. Tourism products combining opportunities to experience the outdoors and nature with modern, comfortable facilities will continue to be popular.

    • In Alberta, the establishment of "Special Places" and "Wildlands" under protective legislation has impacts for a range of existing and proposed tourism and recreation activities, such as snowmobiling, fixed roof accommodations, guiding and outfitting, and campground development.

    • Health and fitness is becoming an increasingly important aspect of vacationing. Concerns with the effects of stress and aging have fueled the spa industry. "Down aging" drives the demand for products that help people look and feel young.

    • A growing number of people will demand fulfilling vacations during which something is gained, be it adventure, challenge, further education, cross-cultural awareness, or peace of mind.

    • Local foods, and their derived products are very often a sought after component of a travel experience. This is often referred to as "Great Tastings".