Washington State Canadian Travel 2004

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Washington State Canadian Travel 2004 December 2005 Prepared by: Dean Runyan Associates 833 SW 11th Avenue, Suite 920 Portland, Oregon 97205 (503) 226-2973 www.deanrunyan.com Prepared for: Washington State Department of Community Trade & Economic Development Tourism Office www.experiencewashington.com/industry

Juli Wilkerson Director

Canadian Travel to the State of Washington

November 2005

State of Washington Department of Community, Trade and Economic Development 360.725.4000

Prepared by Dean Runyan Associates 833 SW 11th Avenue, Suite 920 Portland, Oregon 97205 503.226.2973 www.deanrunyan.com

Table of Contents Highlights ............................................................................................................ ii Introduction................................................................................................... 1 Canadian Visitation........................................................................................ 1 Travel Mode.......................................................................................................... 2 Travel Trends ........................................................................................................ 4 Seasonality............................................................................................................ 6

Overnight Travel............................................................................................ 7 Purpose of Trip...................................................................................................... 7 Length of Stay ....................................................................................................... 8 Accommodations .................................................................................................. 8 Age ....................................................................................................................... 9 Activities ............................................................................................................... 9

Travel Expenditures ..................................................................................... 11 Washington State Market Share................................................................... 12 Demographic and Economic Conditions...................................................... 14 British Columbian Population ............................................................................. 14 Exchange Rate..................................................................................................... 16

Methodology ............................................................................................. 17 References................................................................................................. 17 Appendix A........................................................................................................ 18

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Highlights •

Nearly 13.5% of all visitors to Washington came from Canada in 2004. About 94% of all Canadian travelers came from British Columbia.



93% of all Canadian travelers drove to Washington in 2004. The volume of automobile travel as the number of trips made between British Columbia and Washington increased by 8% since 2002.



The majority of Canadian automobile travelers to Washington were on vacation/pleasure trips. Air travel was common for Canadian business travelers.



Same day trips comprised about 70% of British Columbia’s automobile travel to Washington.



Canadian automobile travel to the U.S. was highest in the summer, with the months of June, July, and August representing 30% of annual trips.



The majority (86%) of overnight Canadian travelers to Washington in 2004 came from British Columbia, and over 60% of them made vacation/pleasure/holiday trips.



Eight of ten Canadian overnight travelers to Washington stayed three nights or less.



Slightly more than half (51%) of all Canadian overnight travelers in 2004 stayed in a hotel, motel or cottage.



The average age of Canadian overnight travelers in 2004 was 47 years. Vacation overnight travelers have a higher proportion of people aged 55 and over – 42% versus 15% among business travelers.



Overnight Canadian travelers visiting Washington spent $224 million in 2004, or 33% more than in 2002.



Washington ranked seventh in Canadian overnight travel expenditures in 2004, a position it has maintained for over a decade. Washington was ranked third in overnight travel volume in 2004, measured in terms of person trips.

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Canadian Travelers to Washington Introduction Canada represents an important market for Washington’s travel and tourism industry, with over 6.8 million trips to Washington in 2004. While travel from Canada had declined substantially during the last decade of the century, Canadian trips have increased recently, suggesting that Canada again represents a more attractive market for Washington. This report is an update of previous research covering Canadian travel to Washington during 2002. The first report sections are based largely on data representing border crossings into Washington or elsewhere in the U.S. Alberta’s border crossings data was added to the analysis this year to emphasize differences where it was appropriate. These data are very detailed but lack information on vehicle occupants. Findings regarding visitors are based on data from periodic surveys of Canadians who have recently traveled to the U.S. Data sources are discussed further in the Methodology section at the end of the report. In certain cases, comparisons are made with findings from 2002, the most recent comparable research.

Canadian Visitation Canadians represented 6.8 million trips in 2004, nearly 13.5% of all trips to or through Washington (see Figure 1). This compares to about 370,000 trips by overseas travelers to Washington. More of these trips involve travel to locations in Washington that are near the Canadian border, and fewer to the southern and more distant locations in the state that are less accessible for day travel. Figure 1 Travel to or through the State of Washington, 2004 Trips (Millions) Canada 6.8

International 0.4

U.S. 43.3 Source: Dean Runyan Associates/Statistics Canada/CIC Research, Inc.

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Looking just at travel to Washington, a large majority of Canadian travelers (94%) in 2004 came from British Columbia. Transient travel through Washington is not included in this figure. Alberta and Ontario delivered most of the remainder (see Table 1 and Figure 2). Travelers from Alberta are relatively more prevalent in the central and eastern portions of the state, although separate data for Canadian travel to regions of Washington are not available. Table 1 Travel to the State of Washington by Canadians By Province of Residence, 2004

Alberta British Columbia Manitoba New Brunswick Nova Scotia Ontario Quebec Saskatchewan Yukon Total

Person Trips 180,200 5,416,800 9,800 800 9,000 80,500 23,400 24,700 6,400 5,751,500

Percent 3.1% 94.2% 0.2% 0.0% 0.2% 1.4% 0.4% 0.4% 0.1% 100.0%

Change from 2002 1.8% 10.6% -21.6% -60.0% 47.5% 0.9% -9.7% 9.3% 68.4% 10.0%

Source: Statistics Canada, International Travel Characteristics – Questionnaire Survey.

Travel Mode Due to the proximity of British Columbia, in particular the Vancouver metropolitan area, the automobile is the fastest and most convenient mode of transportation for the majority of Canadians. According to survey data on Canadian Travelers to Washington, automobiles represent 93% of all trips (both overnight and same-day) made by Canadian visitors in 2004, almost the same as in 2002 (Figure 3). In addition to automobile traffic, 1.9% of Canadians travelers flew and 1.7% boarded a bus to Washington across the British Columbian border in 2004. Other modes of transportation, such as rail, boat, other vehicles, pedestrian crossings and travel directly from overseas and other U.S. states, comprised the remaining 3.5% of Canadian travel to Washington. Same day trips comprised about 70% of British Columbia’s automobile travel to Washington.

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Figure 2 Provinces of Canada

Figure 3 Canadian Travel to Washington by Method of Travel, 2004 Bus 1.7% Air 1.9%

Other 3.5%

Auto-Overnight 23.0%

Auto-Same Day 69.9% Source: Statistics Canada

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Other survey data, not shown here, indicate that 96% of day Canadian travelers to Washington drive from British Columbia. In comparison, overnight Canadian travelers chose a car as transportation mode for 85% of trips to Washington. Air traffic comprised over 5% of overnight Canadian travel to Washington and only less than 1% of day Canadian travel in 2004. British Columbia and Alberta According to Border Counts data, Canadians returning to British Columbia and Alberta from the United States had different travel mode preferences in 2004. The majority of travelers (83%) from British Columbia drove to Washington, predominantly for sameday trips (Figure 4). Only 12% of Canadians flew back from the United States to British Columbia. In contrast, the greater part of Alberta’s residents (59%) traveled by air to the United States. Bus and other travel modes accounted for insignificant parts of both British Columbia’s and Alberta’s border crossings. Figure 4 British Columbia and Alberta Border Crossings by Method of Travel, 2004 59%

Auto-Same Day

11% 24%

Auto-Overnight

28% 12%

Air

59% 2% 2%

Bus Other

3% 1%

0%

10%

20%

30%

40%

British Columbia

50%

60%

70%

Alberta

Source: Statistics Canada

Travel Trends Annual automobile travel (both day and overnight trips) to Washington by Canadian visitors through border crossings in British Columbia declined steadily over the decade from 1992 to 2002, falling from over 18 millions trips to a low point in 2002 at 5.2 million trips (see Figure 5). This trend has reversed during the past two years, with the number of trips from British Columbia to Washington increasing by 8%. This recent increase in automobile travel took place after devaluation of the U.S. dollar in relation to the Canadian dollar, as discussed further below.

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Figure 5 Canadian Automobile Travel through British Columbia Border Crossings 1992 – 2004 20 16.9 14.5

15 Millions

12.1

11.9

11.8

11.3

10

8.3

7.5

7.3

6.3

5

5.2

5.3

5.6

0 1992

1994 1993

1996 1995

1998 1997

2000 1999

2002 2001

2004 2003

Source: Statistics Canada

Figure 6 Canadian Automobile Travel through U.S. Border Crossings 1992 – 2004 80 70

70.5 60.5

Millions

60

48.3

50

46.1

45.8

44.0

40

36.0

35.0

35.1

30

31.6

28.5

28.4

29.6

20 10 0 1992

1994 1993

1996 1995

1998 1997

2000 1999

2002 2001

2004 2003

Source: Statistics Canada

Annual automobile travel for Canadians across all border crossings to the U.S. experienced similar trends, declining until 2003 and then slowly improving last year (see Figure 6). As shown in Figure 7, both trends for automobile travel across all border crossings and border crossings within British Columbia are very similar in terms of annual percent change since 1992. Dean Runyan Associates

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Figure 7 Annual Percent Change in Canadian and British Columbia Border Crossings 1992 – 2004 10%

0%

-10%

-20%

-30% 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Source: Statistics Canada

Figure 8 Percent of Canada, British Columbia and Alberta Border Crossings by Month, 2004 15% 14% 13% 12% 11% 10% 9% 8% 7% 6% 5% Jan

Feb

Mar

Apr

May

Jun

British Columbia

Jul

Aug

Alberta

Sep

Oct

Nov

Dec

Canada

Source: Statistics Canada

Seasonality Canadian automobile travel to the U.S. is highest in the summer, with the three months of June, July and August representing 30% of all 2004 trips (see Figure 8). Automobile travel from British Columbia is very similar, with 31% of all automobile trips made during June, July, and August. Winter travel is the slowest, with a modest shoulder

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during the spring. Automobile travel from Alberta to the United States is highest during July, August, and April with fewer travelers during other months of the year as compared to all Canadian and British Columbia’s automobile travel.

Overnight Travel Since overnight travel to Washington is much more significant than day travel with respect to average daily expenditures, the following sections focus on this segment of travelers. The majority (86%) of overnight Canadian travelers to Washington in 2004 came from British Columbia. Alberta (8%) was the second most significant province, followed by Ontario (4%). Other Canadian provinces counted for 1% (Quebec) or less of overnight travelers to Washington. British Columbia and Alberta’s shares of overnight travel to Washington have remained similar since the beginning of the 1990’s (86% and 7%, respectively, in 1992). Ontario’s share has increased modestly, from 2% in 1992 to 4% in 2004. Purpose of trip The greater part (61%) of overnight Canadian trips to Washington was trips for pleasure (see Figure 9). An additional quarter (24%) was comprised of trips to visit friends or relatives. The remaining trips were divided between business (7%) and all other types of trips (8%), which included personal (medical, weddings, etc.), transit to/from Canada, educational/study, and shopping trips. These proportions are similar to those for 1992. Figure 9 Overnight Canadian Trips to Washington by Purpose of Trip, 2004 Other 8.0%

Business/Convention/Employment 6.8%

Visiting Friends/Relatives 24.5%

Pleasure/Recreation/Holiday 60.7% Source: Statistics Canada

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Length of Stay Eight of ten Canadian overnight trips to Washington were for brief visits – one to three nights. A third (33%) of Canadian overnight travelers made one-night trips in 2004. Overnight travelers who visited friends and relatives were relatively more likely to take one-week trips or longer, in comparison with business and pleasure travelers, whose visits tended to be shorter. The average length of stay for all Canadian overnight travelers to Washington is 2.9 nights, somewhat less than the 2002 average of 3.1 nights. Travelers who visited friends and relatives in Washington tended to stay the longest, with an average stay of 3.6 nights (up slightly from 3.5 nights in 2002). Overnight pleasure/vacation travelers had the shortest trips to Washington, with an average stay of 2.6 nights, and business travelers stayed longer, an average stay of 3.1 nights (see Figure 10). Figure 10 Duration of Canadian Overnight Trips by Purpose of Trip, 2004 76%

Business

20% 4%

85%

Vacation

10% 5%

71%

VFR

14% 15%

0%

10%

20%

30% 1-3 Nights

40%

50%

4-6 Nights

60%

70%

80%

90%

7+ Nights

Source: Statistics Canada

Accommodations Half (51%) of all Canadian overnight travelers in 2004 stayed in a hotel, motel or cottage, and approximately equal proportions (22%) camped or stayed with friends and relatives. These proportions remained almost the same as in 2002. The majority of business overnight travelers (84%) stayed in commercial lodging in 2004 (see Figure 11). About two thirds of VFR travelers stay with friends or relatives, with most of the remainder staying in commercial lodging.

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Figure 11 Type of Accommodation by Purpose of Trip, 2004 Hotel/Motel/Cottage

Private Home

Combination 0%

60%

10%

66%

4% 3% 6%

Camping/RV Park

84%

20%

3% 4%

31%

8%

10%

20%

30%

40%

Business

50% VFR

60%

70%

80%

90%

Pleasure

Source: Statistics Canada

Age The average age of Canadian overnight travelers in 2004 was 47, about the same as the average of 48 years in 2002. Pleasure/vacation overnight travelers were the oldest group with an average age of 48, while business travelers and those visiting friends and relatives were somewhat younger with average ages of 44 and 46, respectively. Vacationing overnight travelers have the higher proportion of older people, ages 55 and over – 42% versus 15% among business travelers. Business travelers are represented primarily by middle age categories of 35 to 55, which account for over 60% of all overnight business travelers (see Figure 12). Children aged 2 to 11 were more likely to be part of vacation/pleasure trips and trips to visit friends and family. Activities About a third of Canadian overnight travelers in 2004 made their trip to Washington as part of a vacation. Visiting friends and relatives counted for about 24% of overnight trips by Canadians (see Figure 13). While the share of trips for a vacation or to visit friends and relatives in Canadian travel to Washington has not changed significantly since 2002, the proportion of trips from Canada to Washington to visit a second home/cottage/condo has decreased from 21% in 2002 to 17% in 2004. This change in proportion may be due more to an increase in the overall number of trips than to an increase in this category of travel, which may be relatively steady from year to year.

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Figure 12 Age of Overnight Traveler by Purpose of Trip, 2004 40% Business

VFR

Vacation

30%

20%

10%

0%