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International tourism: Canada needs strategy to win back market share

Nov. 15, 2007, Toronto, Ont.- In a speech delivered today to the Economic Club of Toronto, Jean-Marc Eustache, president and CEO of Transat A.T. Inc., asked all governments, but particularly Ottawa, to show leadership in developing an international tourism strategy.


November 15, 2007
By Carey Fredericks

Nov. 15, 2007, Toronto, Ont.- In a speech delivered today to the
Economic Club of Toronto, Jean-Marc Eustache, president and CEO of Transat A.T. Inc.,
one of the largest tour operators in the world and the number one incoming
tour operator in Canada, asked all governments,but particularly Ottawa, to
show leadership in developing an international tourism strategy.

        "The global tourism market is growing steadily, but Canada stands apart,
with declining numbers of visitors," Mr. Eustache said. "Two million Canadians
have tourism-related jobs, in thousands of companies and institutions that
span the hospitality, transportation and tourist attraction sectors. That
number could grow to 2.5 million in the coming years… or it could decline,
depending on the future moves we make."

        Until 2004, Canada was in the top-10 destinations worldwide. But the
numbers are now slipping, in large part due to fewer Americans visiting the
country, while virtually all other countries record increases in visitors.
"Americans have turned their attention to other destinations, in part due to
the exchange rate, gasoline prices, new passport rules… but also because
Canada doesn't seem to click with them anymore," Mr. Eustache said. More than
16 million Americans made an overnight trip to Canada in 2002, compared with
less than 14 million in 2006, he noted.

        Mr. Eustache stressed the importance of leadership: "Governments-all of
them, but mainly Ottawa-have critical roles to play, because a large number of
issues need to fit together. Tourism is about the protection of sites and
landscapes. It's about culture, heritage, institutions, food and hospitality.
It's about safety, clean streets, parks. It's about taxes and gasoline prices.
Only governments, and especially Ottawa, have the power to orchestrate so many
instruments, and make a winning strategy emerge. On all these fronts we need
to meet international standards, before turning our attention to outsmarting
competition in the marketplace."

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        Mr. Eustache also emphasized the importance of having a competitive
Canadian airline industry, capable of enhancing "connectivity" to the world.
"In this day and age, only agile airlines can succeed. And agility-at the very
least-means a competitive cost structure," he said. "If we want to have our
companies compete globally and thrive, we need a level playing field. Right
now, we don't have that. Canadian carriers are at a disadvantage compared to
their competitors, because Ottawa sees air transportation as a cash cow."

        "The burden of leadership can only rest on the government's shoulders.
And I can't wait to see our political leaders pay more attention to what the
industry has to say. Canada needs a global strategy for tourism, and strong
leadership," Mr. Eustache concluded.

        About Transat

        Transat A.T. Inc. is an integrated international tour operator with more
than 60 destination countries and that distributes products in over
50 countries. A holiday travel specialist, Transat operates mainly in Canada
and Europe, as well as in the Caribbean, Mexico and the Mediterranean Basin.
Montreal-based Transat is also active in air transportation, destination
services and distribution. (TSX: TRZ.B, TRZ.A)