Running head: TOURISM INDUSTRYThe Canadian tourism industry research.1358490 Seminar E1Canada is the one of those most famous tourist destinations over the world. Tourism is also one of the pillar industries in national economy. According to government of Canada, “The tourism sector makes an important contribution to Canada's economy in every region of the country. In 2012, tourism accounted for approximately 2 percent ($32.0 billion) of Canada's gross domestic product, and generated $81.7 billion in revenues.” So, I chose the tourism industry for my individual research and try to answer these questions.1.What are the barriers to entry in this industry?The tourism industry includes many small sectors under its entirety, such as transportation, accommodation, food and beverage, recreation and entertainment, and travel services. (Government of Canada, 2013). Those small sectors are interdependent patents and not a single one can be omitted. In my opinion, this kind of relationship brings us the main barrier to entry this industry. Imagine that a place with beautiful scenery but lack of good accommodations and transportations, the cask effect will restrict the development of local tourism.Another barrier is that this industry has already well-developed. (BMI Research, 2015) New comers don’t have big changes to gain competitiveness from the existing competitors. The cost for exploit a competitive new tourist destination is huge. That means even if we find a place which has a better scenery than Banff and Jasper, we still need tons of time and money to build auxiliary facilities to reach the current level of these two national parks.One more barrier that I can find is government control and regulations. The protection of natural environment is the most important thing. (Government of Alberta, 2014.) It is effecting the tourism industry to some extent.2.What is the bargaining power of buyers in the industry?First, Canada offering a broad range of tourist attractions, including both winter sports and summer activities, negate the effects of seasonal slumps. (BMI Research, 2015) That means the internal competition in the Canadian tourism industry is intense. Tourists as buyers could make a choice from so many tourist destinations. That gives them a big bargaining power. In the International market, Canada also have to compete with other countries at the national level. Buyers are r elatively price sensitive, because in essence, tourism means “travel to and stay in places outside their usual environment for more than twenty-four (24) hours and not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited” (Government of Canada, 2013.) Buyers could get the same satisfaction from different tourist attractions, so the cost will be an important factor for them to make a decision.3.What is the bargaining power of suppliers in the industry?As I mentioned above, the competition in the industry is intense from both macroscopic and microscopic point of view. Each competitor has a relatively small influence to theindustry. There are some famous tourist attractions in each province, and they arecompeting each other. However, because Canada is so big, these big attractions also are monopoly locally to some degree. For example, I have been to Vancouver and Banffmany times, the reason for that is my time budget is limited but I really need a trip as relaxation. Eastern tourist destinations are too far away from me.4.What is the competitive landscape like in the industry?There are many tourist attractions as companies in the industry in Canada. There are world famous big ones such as Banff National Park and the Niagara Falls,which attracts millions of visitors each year. (BMI Research, 2015.) At the same time, there also are many small national parks as small companies in the industry, their customers are mostly local people. Actually, there are only two kind of attractions, which are human landscape, such as historical sites like Montreal, and natural landscape like Banff. However, I they are highly differentiated. People like to try them one by one if they have the chance.5.What are some recent events or trends that have affected the industry?The most important event is the weak Canadian dollar. This is absolutely a good news for the tourism industry. That means travel to Canada is cheaper now for those international buyers, especially Americans, which is the main source market for inbound travel. (BMI Research, 2015). There were 2,054,370 U.S. arrivals in July 2015. (Destination Canada, 2015.) But on the other hand, the bad economic situations also hurts local Canadianhousehold’s willing to travel.Another big event was the relaxation of restrictions on Chinese people’s visitor visa.“F rom major global tourism market China, overall we expect to see arrivals to Canada increase by a healthy 5.5% in 2015 to reach 18.3mn.” (BMI Research, 2015)6.What is the future outlook of this industry?Canada's tourism market is very well developed. The weak Canadian dollar will boost inbound travel market in next couple years. Based on that, international investment on tourism industry will also be active. “The hotel market continues to expand with Hilton, Hyatt, Carlson Rezidor and InterContinental Hotel Group all announcing new hotels in the development pipeline.” (BMI Research, 2015.) The lower cost of fuel and thetourists-boom also will stimulate the development of transportation. “Already extensive flight routes are also expanding, with AirTransit announcing the launch of a new direct flight between Glasgow and Montreal due in 2016, while Icelandair will also launch new flights to Montreal.” (BMI Research, 2015.)So, the future outlook is optimistic for tourism industry in the next few years.REFERENCESGovernment of Canada. (2013). Tourism Sector. Retrieved 29 October, 2015, from http://www.tourism.gc.ca/eic/site/034.nsf/eng/h_00055.htmlGovernment of Alberta. (2015). Tourism. Retrieved 29 October, 2015, from/business/industries/tourism.aspxDestination Canada. (2015). Tourism Snapshot. Retrieved 29 October, 2015, from/sites/default/files/pdf/Research/Stats-figures/International-visitor-arrivals/Tourism-monthly-snapshot/tourismsnapshot_2015_07_v2_eng.pdfBMI Research. (2015). Industry Forecast. Retrieved 29 October, 2015, from https://bmo-bmiresearch-com.login.ezproxy.library.ualberta.ca/article/view?article=1105241BMI Research. (2015). Market Overview. Retrieved 29 October, 2015, from https://bmo-bmiresearch-com.login.ezproxy.library.ualberta.ca/article/view?article=1105235BMI Research. (2015). BMI Industry View. Retrieved 29 October, 2015, from https://bmo .login.ezproxy.library.ualberta.ca/article/view?article=1105241。
