Current State of Tourism is Canada

http://www.jaunted.com/story/2007/5/14/115941/323/travel/Canada+Tourism+Exploits+Final+Days+of+Knut's+Cuteness

The current state of the tourism industry in Canada is ok but it could do better.  The government of Canada has recognised this and has stepped in and is now trying to lend a helping hand in promoting tourism in Canada.  They have come up with more then 30 initiatives including increasing awareness of Canada as a premier tourist destination, facilitating ease of access and movement for travellers while protecting the safety and integrity of Canada's boarders, and fostering an adequate supply of skills and labour to enhance visitor experiences through quality service and hospitality.  Tourism in Canada in 2010 was responsible for $73.4 billion in revenues and employs approximately 594,500 Canadians.  The government has seen the importance of tourism in Canada for not only the revenues but also the jobs it creates for Canadian citizens. 

The tourism industry has improved since the Canadian Government has stepped in to help out and raise awareness.  Here are some stats that I found to support this statement.  In 2010 international visitors made 15.9 million overnight trips to Canada up 1.8% from 2009.  Canada saw gains in total overnight inbound travel in the last two quarters of 2010 of 3.3% and 3.2% after posting declines for the first half of 2010.  Overall, overnight visitors spent $11.9 billion, a 3.4% rise and the average spend per trip increased by 1.6% to $750.00.  Even with these promising rising numbers Canada still needs to further promote tourism from other countries and even within our own country as in 2010 Canadian outbound travel to the US and other international destinations increased by 9.5% and Canadians spent $26.5 billion during outbound overnight trips, a 10.2% increase over 2009. 

I think that this type of industry would be very elastic because this is not a necessity of life.  If a family's income was to drop this would be one of the first things to go.  Families would not be going far if anywhere at all if they could not afford it. 

Jim Byers, Travel Editor for The Star
http://www.thestar.com/travel/northamerica/article/1065769--help-on-the-way-for-canadian-tourism

Canadian Tourism Commission , Tourism Snapshot 2010 Year-in-Review
http://en-corporate.canada.travel/sites/default/files/pdf/Research/Stats-figures/Year-in-review-facts-figures/Tourism%20Snapshot%20-%20Year%20in%20review/yearinreview_2010_eng_final.pdf

Excercise 4-2 - Elasticity of Demand and Total Revenue

http://www.montrealgazette.com/business/Hefty+price+roaming+charges/6354562/story.html

The article that I found was on the price of cellular roaming costs and the revenue created by these charges. 

The article's main points are that the price of roaming charges are way too high for most people to spend.  The higher the costs of roaming charges the less likely people are going to be willing to turn on and use their phone while away and then it can be said that the demand is elastic.  This article is stating is that if the price of roaming charges was a bit more reasonable then there could be a profit for the cellular companies. 

This is displayed by the graphs above.  The first one shows that if the price is higher then the demand is low and when the cost falls the demand rises thus elastic. 

In the second graph you can see that as the price drops per MB revenues increase and when the price drops too low then the revenues drop as well so at the peak of this graph is when the price and demand is unitary.