New passport law threatens tourism industry

By Melodie Caruso

Opposition to a law requiring passports to cross North American borders is in full-swing as politicians, government departments, and associations rally to negotiate the parameters of the law in an attempt to protect Ottawa’s tourism industry.

“Needing a passport will impact tourism, travel, restaurants, convention, shopping, and sports industries,” says Gary Wheeler, issues management coordinator for the Ontario Ministry of Tourism.

On April 5 of this year, the United States Department of Homeland Security announced the Western Hemisphere Travel Initiative.

The initiative will require all travelers crossing the Canadian, American, and Mexican borders to bring a passport with them by 2008.

Ontario draws the largest number of US tourists and will be the most affected if the initiative is implemented.

The Ministry of Tourism estimates $570 million and 7,000 jobs will be lost.

Wheeler says the Ministry assumes small and big businesses will be affected.

“It is a critical issue,” he says, “the proposed initiative will have unintended and substantial effects on commerce.”

Jantine Van Kregten, communications director of Ottawa Tourism says the initiative will have a direct effect on tourism in Ottawa.

“In terms of U.S. visitors to Ottawa, in 2004 we saw 641,000, of which 378,000 were overnight and 263,000 were daytrippers,” she says.

The number of daytrippers and the revenue they generate may be most affected by the need for a passport.

But the potential loss of this revenue could hinder the overall economic contribution that tourism pumps into the local economy.

The scare of potential economic ramifications caused by the initiative comes at a time when Ottawa’s tourism sector has been in decline for four years.

Coupled with the panic caused by high gas prices, businesses in the Ottawa area could be heading for a time of economic volatility.

A recent article written by Ontario Tourism Minister Jim Bradley states that about 35 per cent of Canadian citizens currently hold passports in comparison to only 25 per cent of Americans.

With the average cost of a passport at $100, their requirement would be a disincentive for cross-border travel, Bradley says.

Although the implementation date seems far removed, a report by the Canadian Tourism Commission indicates media coverage in Canada and the United States has already had an impact on present travel conditions.

The report states that future conventions have been cancelled due to the uncertainty of cross-border law.

“There is no question the initiative will happen,” says Paul LaRue, communications advisor for Canada Tourism Commission, “but we are trying to push it back.”

LaRue says a number of politicians in northern American states, Canadian politicians and other associations are trying to delay the initiatives implementation.

The delay is useful because it could provide enough time to create another form of “secure identification” that will be sufficient to cross borders as an alternative to passports.

“Foreign Affairs Canada is the lead organization in Canada’s response,” LaRue says. “There is a lot of potential for negotiation.”

Aggressive work on the initiative is hoped to buffer the negative effects on tourism.

Those involved remain optimistic that negotiations between Canada and the U.S regarding the new law will result in a favourable outcome.