Chapter 2.

Transportation

Overview

The transportation sector is vital to the success of our industry. Put simply, if we can’t move people
from place to place — whether by air, sea, or land — we don’t have an industry. This chapter takes a
broad approach, covering each segment of the transportation sector globally, nationally, and at home
in British Columbia.
Let’s start our review by taking a look at the airline industry.
Air

According to the International Air Transport Association (IATA), in 2014, airlines transported 3.3
billion people across a network of almost 50,000 routes generating 58 million jobs and $2.4 trillion
in business activity (International Air Transport Association, 2014a).
The first commercial (paid) passenger flight took place in Florida on New Year’s Day 1914 as a
single person was transported across Tampa Bay (IATA 2014a). There have been a number of
international aviation milestones since that flight, as illustrated in Table 2.1.
 Rules and Regulations

Aviation is a highly regulated industry as it crosses many government jurisdictions. This section
explores key airline regulations in more detail.

Open Skies

The term open skies refers to policies that allow national airlines to fly to, and above, other countries.
These policies lift restrictions where countries have good relationships, freeing up the travel of
passengers and goods.

Canada’s approach to open skies is the Blue Sky Policy, first implemented in 2006. The National
Airlines Council of Canada (NACC) and Canadian Airports Council (CAC) support the Blue Sky
Policy.

While opening up air transport agreements (ATAs) with other jurisdictions is important, the Canadian
government doesn’t provide blanket arrangements, instead negotiating “when it is in Canada’s overall
interest to do so” (Government of Canada, 2014a). Some suggest the government should be more
liberal with air access so more competitors can enter the market, potentially attracting more visitors
to the country (Gill and Raynor, 2003).

Taxes and Fees

According to a 2012 Senate study on issues related to the Canadian airline industry, Canadian
travellers are being grounded by airline fees, fuel surcharges, security taxes, airport improvement
fees, and other additional costs. Airports are charged rental fees by the Canadian government ($4.8
billion from 1992 to 2004), which they pass on to the airlines, who in turn transfer the costs to
travellers. Some think eliminating rental fees would make Canadian airports more competitive, and
view rental and other fees as the reason 5 million Canadians went south of the border for flights in
2013, where passenger fees are 230% lower than in Canada (Hermiston and Steele, 2014).

Profitability

Running an airline is like having a baby: fun to conceive, but hell to deliver. – C. E. Woolman,
principal founder of Delta Air Lines (The Economist, 2011).

As the quote above suggests, airlines are faced with many challenges. In addition to operating in a
strict regulatory environment, airlines yield extremely small profit margins. In 2013 the industry
accumulated $10.6 billion worldwide in revenues, although global profit margins were just 1.5%
(IATA, 2014a). To put that into perspective, while the average airline earned 1.5%, Apple’s profit
margins were almost 14 times that at 20.15% (YCharts, 2014).

Passenger Load Factor

Key to airline profitability is passenger load factor, which relates how efficiently planes are being
used. Load factor for a single flight can be determined by dividing the number of passengers by the
number of seats.

Passenger load factors in the airline industry reached a record high in 2013, at just under 80%, which
was attributed to increased volumes and strong capacity management in key sectors (IATA, 2104a).
One way of increasing capacity is by using larger aircraft. For instance, the introduction of the Airbus
A380 model has allowed up to 40% more capacity per flight, carrying up to 525 passengers in a three-
class configuration, and up to 853 in a single-class configuration (Airbus, 2014).
 Low-Cost Carriers
Another key factor in profitability is the airline’s business model. In 1971, Southwest Airlines became
the first low-cost carrier (LCC), revolutionizing the industry. The LCC model involved charging for
all extras such as reserved seating, baggage, and on-board service, and cutting costs by offering less
legroom and using non-unionized workforces. Typically, an LCC has to run with 90% full planes to
break even (Owram, 2014). The high-volume, lower-service system is what we have become used
to today, but at the time it was introduced, it was groundbreaking.
Ancillary Revenues
The LCC model, combined with tight margins, led to today’s climate where passengers are charged
for value-added services such as meals, headsets, blankets, seat selection, and bag checking. These
are known in the industry as ancillary revenues. Profits from these extras rose from $36 billion in
2012 to $42 billion in 2013, or more than $13 a passenger. An average net profit of only $3.39 per
passenger was retained by airlines (IATA, 2014a).
As you can see, airlines must strive to maintain profitability, despite thin margins, in an environment
with heavy government regulation. But at the same time, they must be responsible for the safety of
their passengers.
Air Safety and Security
IATA encourages airlines to view safety from a number of points, including reducing operational
risks such as plane crashes, by running safety audit programs. They also advocate for improved
infrastructure such as runway upgrades and training for pilots and other crew. Finally, they strive to
understand emerging safety issues, including the outsourcing of operations to third-party companies
(IATA, 2014a).
In terms of security, coordination between programs such as the Interpol Stolen and Lost Travel
Documents initiative and other databases is critical (IATA, 2014a). As reservations and management
systems become increasingly computerized, cyber-security becomes a top concern for airlines, who
must protect IT (information technology) because their databases contain information about flights
and passengers’ personal information. Unruly passengers are also a cause of concern, with over 8,000
incidents reported worldwide every year (IATA, 2014a).
Now that we have a better sense of the complexities of the industry, let’s take a closer look at air
travel in Canada and the regional air industry.
Canada’s Air Industry
In 1937, Trans-Canada Air Lines (later to become Air Canada) was launched with two passenger
planes and one mail plane. By the 1950s, Canadian Pacific Airlines (CP Air) entered the marketplace,
and an economic boom led to more affordable tickets. Around this time CP Air (which became
Canadian Airlines in 1987) launched flights to Australia, Japan, and South America (Canadian
Geographic, 2000). In 2001, Canadian Airlines International was acquired by Air Canada (Aviation
Safety Network, 2012).

In 1996, the marketplace changed drastically with the entry of an Alberta-based LCC called
WestJet. By 2014, WestJet had grown to become Canada’s second major airline with more than 9,700
staff flying to 88 destinations across domestic and international networks (WestJet, 2014).

As it grew, WestJet began to offer services such as premium economy class and a frequent-flyer
program, launched a regional carrier, and introduced transatlantic flights with service to Dublin,
Ireland, evolving away from the LCC model (Owram, 2014). With those changes, and in the absence
of a true low-cost carrier, in 2014, some other companies, such as Canada Jetlines and JetNaked,
sought to raise upward of $50 million to bring their airlines to market.

However, outside of Air Canada and WestJet, airlines in Canada have found it very challenging to
survive, and some examples of LCC startups like Harmony Airways and Jetsgo have fallen by the
wayside.

Challenges to Canada’s Air Industry

When looking at these failed airlines in Canada, three key challenges to success can be
identified (Owram, 2014):

1. Canada’s large geographical size and sparse population mean relatively low demand for flights.
2. Canada’s higher taxes and fees compared with other jurisdictions (such as the United States)
make pricing less competitive.
3. Canada’s two dominant airlines are able to price new entrants out of the market.

In addition to these factors, the European debt crisis, a slow US economic recovery, more cautious
spending by Canadians, and fuel price increases led to a $900 million industry loss in 2011
(Conference Board of Canada, 2012) prior to the industry returning to profitability in 2013.
Today, the Canadian airline industry directly employs roughly 141,000 people and is worth $34.9
billion in gross domestic product. It supports 330 jobs for every 100,000 passengers and contributes
over $12 billion to federal and provincial treasuries, including over $7 billion in taxes (Gill and
Raynor, 2013).

Let’s now turn our attention to the regional air market, focusing on British Columbia.

Regional Airlines

Transportation in BC has always been difficult: incomplete road systems and rugged terrain
historically made travel between communities almost impossible. In 1927, a number of businessmen
promised to change all that when they opened British Columbia Airways in Victoria with the purchase
of a commercial airliner (Canadian Museum of Flight, 2014).

As commercial flying became more popular, and the province grew, regional airports started to spring
up around BC as a means of delivering surveying equipment, forestry supplies, and workers. Many
of these airports were legacies of Canada’s strategic position for the military. Fort Nelson’s airport,
for instance, was established so the US Air Force could fuel aircraft bound for Russia in World War
II (Northern Rockies Regional Airport, 2014).

In 1994, Transport Canada transferred all 150 airports under its control to local authorities under
the National Airports Policy (NAP). This policy is considered to have been a turning point in
the privatization of the airline industry in Canada. A 2004 study showed that after 10 years, 48% of
these airports were not able to cover annual costs of operation, leading to concerns about the viability
of small local airports in particular (InterVISTAS, 2005).

In 2012, the BC government released its aviation strategy, entitled Connecting with the World, which
acknowledged the economic challenges for airports large and small. These range from Vancouver
International Airport (YVR), which supports more than 61,000 jobs and creates more than $11 billion
in economic activity each year, through to regional and local airports. The strategy outlined a
framework to remove barriers to aviation growth including potentially eliminating the two-cent-per-
litre International Aviation Fuel Tax (British Columbia Ministry of Transportation and Infrastructure,
2012).

Given a highly complex regulatory environment, razor-thin profit margins, and intense competition,
the airline industry is constantly changing and evolving at global, national, and regional levels. But
one thing is certain: air travel is here to stay.

On the other hand, the rail industry has been faced with significant declines since air travel became
accessible to the masses. Let’s learn more about this sector.
Rail

In Chapter 1, we looked at the historic significance of railways as they laid the foundation for the
modern tourism industry. That’s because in many places, including Canada and British Columbia,
trains were an unprecedented way to move people across vast expanses of land. With the Canadian
Pacific company opening up hotels in major cities, BC’s hospitality sector was born and a golden age
of rail travel emerged.

Profitability

However, starting in the 1940s and 1950s, the passenger rail industry began to decline sharply.
In 1945, Canadian railways carried 55.4 million passengers, but just 10 years later passenger traffic
had dropped to 27.2 million. The creation of VIA Rail in 1977 as a Canadian Crown corporation was
an attempt by the government to ensure rail travel did not disappear, but in the years since its founding
VIA has struggled, relying heavily on federal subsidies in order to continue operations.

Between 1989 and 1990, VIA lost over 45% of its ridership when it cut unprofitable routes,
focusing on areas with better potential for revenue and passenger volumes. From there, annual
ridership has stabilized at around 3.5 million to 4.0 million passengers per year, slowly increasing
throughout the 1990s and 2000s (Dupuis, 2011).

Despite this slight recovery, there are a number of challenges for passenger rail in Canada, which will
likely require continued government support to survive. Three key challenges to a successful
passenger rail industry are:

1. Passenger rail must negotiate with freight for right-of-use of tracks.

2. There is limited potential of routes (with the highest volume existing in the Quebec-Windsor
corridor).
3. Fixed-cost equipment is aging out, requiring replacement or upgrading.
High-speed rail seems like an attractive option, but would be expensive to construct as existing tracks
aren’t suitable for the reasons given above. It’s also unlikely to provide high enough returns to private
investors (Dupuis, 2011). This means the Canadian government would have to invest heavily in a
rapid rail project for it to proceed. As of 2014, no such investment was planned.

While the industry overall has been in a decline, touring companies like Rocky Mountaineer have
found a financially successful model by shifting the focus from transportation to the sightseeing
experience. The company has weathered financial storms by refusing to discount their luxury product,
instead focusing on the unique experiences. The long planning cycle for scenic rail packages has
helped the company stand their ground in terms of pricing (Cubbon, 2010).

Rail Safety

In Canada, rail safety is governed by the Railway Safety Act, which ensures safe railway operation
and amends other laws that relate to rail safety (Government of Canada, 2014b). The Act is overseen
by the Minister of Transport. It covers grade crossings, mining and construction near railways,
operating certifications, financial penalties for infractions, and safety management.

The Act was revised in late 2014 in response to the massive rail accident in July 2013 in Lac-
Mégantic, Quebec. A runaway oil train exploded, killing 47 people, and subsequently MM&A
Railway and three employees, including the train’s engineer, were charged with criminal negligence
(CBC News, 2014).

In addition to freight management issues, a key rail safety concern is that of crossings. As recently as
April 2014, Transport Canada had to issue orders for improved safety measures at crossings in
suburban Ottawa after a signal malfunctioned in the area (CTV News, 2014a). According to Operation
Lifesaver Canada (2014), in 2011, there were 169 crossing collisions across Canada, with 25 fatalities
and 21 serious injuries. In general, however, Canada’s 73,000 kilometres of railway tracks safely
transport both people and goods. And while railways in Canada, and elsewhere, are being forced to
innovate, companies like Rocky Mountaineer (see Spotlight On above) give the industry glimmers of
hope.
The rail industry shares some common history with the cruise sector. Let’s now turn our focus to the
water and learn about the evolution of travel on the high seas.

Water

Travel by water is as old as civilization itself. However, the industry as we know it began
when Thomas Newcomen invented the steam engine in 1712. The first crossing of the Atlantic by
steam engine took place in 1819 aboard the SS Savannah, landing in Liverpool, England, after 29
days at sea. Forty years later, White Star Lines began building ocean liners including the Olympic-
class ships (the Olympic, Britannic, and Titanic), expanding on previously utilitarian models by
adding luxurious amenities (Briggs, 2008).

A boom in passenger ship travel toward the end of the 1800s was aided by a growing influx of
immigrants from Europe to America, while more affluent passengers travelled by steamship for
pleasure or business. The industry grew over time but, like rail travel, began to decline after the arrival
of airlines. Shipping companies were forced to change their business model from pure transportation
to “an experience,” and the modern cruise industry was born.

The Cruise Sector

We’ve come a long way since the Olympic class of steamship. Today, the world’s largest cruise ship,
MS Oasis of the Seas, has an outdoor park with 12,000 plants, an 82-foot zip wire, and a high-diving
performance venue. It’s 20 storeys tall and can hold 5,400 passengers and a crew of up to 2,394
(Magrath, 2014). A crew on a cruise ship will include the captain, the chief officer (in charge of
training and maintenance), staff captain, chief engineer, chief medical officer, and chief radio officer
(communication, radar, and weather monitoring).
 Cruising the World

According to CLIA, 21.7 million passengers were expected to travel worldwide on 63 member lines
in 2014. Given increased demand, 24 new ships were expected in 2014-15, adding a total capacity of
over 37,000 passengers.

Over 55% of the world’s cruise passengers are from North America, and the leading destinations
(based on ship deployments), according to CLIA, are:

• The Caribbean (37%)

• The Mediterranean (19%)
• Northern Europe (11%)
• Australia/New Zealand (6%)
• Alaska (5%)
• Asia (4%)
• South America (3%)

River Cruising

While mass cruises to destinations like the Caribbean remain incredibly popular, river cruises are
emerging as another strong segment of the industry. The key differences between river cruises and
ocean cruises are (Hill, 2013):

1. River cruise ships are smaller (400 feet long by 40 feet wide on average) and can navigate
narrow passages.
2. River cruises carry fewer passengers (about 10% of the average cruise, or 200 passengers
total).
3. Beer, wine, and high-end cuisine are generally offered in the standard package.
The price point for river cruises is around the same as ocean trips, with the typical cost ranging
from $2,000 to $4,000, depending on the itinerary, accommodations, and other amenities.

From 2008 to 2013, river cruises saw a 10% annual passenger increase. Europe leads the subcategory,
while emerging destinations include a cruise route along China’s Yangtze River. As the on-board
experience differs greatly from a larger cruise (no play areas, water parks, or on-board stage
productions), the target demographic for river cruises is 50- to 70-year-olds. According to Torstein
Hagen, founder and chairman of Viking, an international river cruising company, “with river cruises,
a destination is the destination,” although many river cruises are themed around cultural or historical
events (Hill, 2013).

Cruising in Canada

According to a study completed for the North West & Canada Cruise Association (NWCCA) and its
partners, in 2012, approximately 1,100 cruise ship calls were made at Canadian cruise ports generating
slightly more than 2 million passenger arrivals throughout the six-month cruise season (BREA, 2013).
The study found three key cruise itineraries in Canada:

1. Canada/New England
2. Quebec (between Montreal and Quebec City and US ports)
3. Alaska (either departing from, or using, Vancouver or another BC city as a port of call)

These generated $1.16 billion in direct spending. Cruising also generated almost 10,000 full- and part-
time jobs paying $397 million in wages and salaries. The international cruise industry also generated
an estimated $269 million in indirect business and income taxes in Canada, and the majority of this
spending was in British Columbia (BREA, 2013).

Cruising BC

BC’s rail history and cruise history are intertwined. As early as 1887, Canadian Pacific Railway began
offering steamship passage to destinations such as Hawaii, Shanghai, Alaska, and Seattle. Ninety-
nine years later, Vancouver’s Canada Place was built, with its cruise ship terminals, allowing the
province to attract large ships and capture its share of the growing international cruise industry (Cruise
BC, 2014).

This potential continues to grow as Nanaimo, Prince Rupert, Victoria, and Vancouver accounted for
57% of the Canadian cruise passenger traffic with 1.18 million passengers in 2012 (BREA, 2013).

Cruising isn’t the only way for visitors to experience the waters of BC. In fact, the vast majority of
our water travel is done by ferry. Let’s take a closer look at this vital component of BC’s transportation
infrastructure.

Ferries

Ferry service in British Columbia dates back to the mid-1800s when the Hudson’s Bay Company ran
ships between Vancouver Island and the Mainland. Later, CP Rail and Black Ball ferries ran a private
service, until 1958 when Premier W.A.C. Bennett announced the BC Ferry Authority would
consolidate the ferries under a provincial mandate.
The MV Tsawwassen and the MV Sidney began regular service on June 15, 1960, and BC Ferries was
officially launched with two terminals and around 200 employees. Today, there are 35 vessels, 47
destinations, and up to 4,700 employees in the summer peak season (BC Ferries, 2014).

BC isn’t the only destination where ferries make up part of the transportation experience. In
2011, Travel + Leisure Magazine profiled several notable ferry journeys in the article, “World’s Most
Beautiful Ferry Rides” including:

• An 800-mile ferry voyage through Chile’s Patagonian fjords

• A three-mile trip from the Egyptian Spice Market to Istanbul, Turkey
• Urban ferry rides including Hong Kong’s Victoria Harbour, Australia’s Sydney Harbour, and
New York City’s Staten Island Ferry

The article also featured the 15-hour trip from Port Hardy to Prince Rupert on British Columbia’s
coast (Orcutt, 2011).

While cruising is often a pleasant and relaxing experience, there are a number of safety concerns for
vessels of all types.

Cruise and Ferry Safety

One of the major concerns on cruise lines is disease outbreak, specifically the norovirus (a stomach
flu), which can spread quickly on cruise ships as passengers are so close together. The US Centers for
Disease Control (CDC) vessel sanitation program (http://www.cdc.gov/nceh/vsp/default.htm) is
designed to help the industry prevent and control the outset, and spreading, of these types of
illnesses (Briggs, 2008).

Accidents are also a concern. In 2006, the BC Ferries vessel MV Queen of the North crashed and sank
in the Inside Passage, leaving two passengers missing and presumed dead. The ship’s navigating
officer was charged with criminal negligence causing their deaths (Keller, 2013). More recently, a
“hard landing” at Duke Point terminal on Vancouver Island caused over $4 million in damage. BC
Ferries launched a suit against a German engineering firm in late 2013, alleging a piece of equipment
failed, making a smooth docking impossible. The Transportation Safety Board found that staff aboard
the ship didn’t follow proper docking procedures, however, which contributed to the crash (Canadian
Press, 2013).
We’ve covered the skies, the rails, and the seas. Now let’s round out our investigation of transportation
in tourism by delving into travel on land.

Land

While much of this text has placed significance on the emergence of the railways as critical to the
development of our industry, BC’s roadways have also played an integral role. Our roads have
evolved from First Nations trails, to Fur Trade and Gold Rush routes, to Wagon Roads and Trunk
Roads — finally becoming the highway system we know today (British Columbia Ministry of
Transportation and Highways, n.d.).

Today, land-based travel is achieved through a complex web of local transit, taxis, rentals, walking,
and short-term sightseeing. This section briefly explores these options.

Scenic and Sightseeing Travel

It’s common for visitors to want to explore a community and appreciate the sights. We’ve already
learned a little about the rail-based sightseeing company, Rocky Mountaineer. Many destinations also
offer short-term, hop-on-hop-off bus and trolley tours. Others feature trams and trolleys. Outside of
impromptu excursions, sightseeing tours are often put together by inbound tour operators. You can
learn more about tour operators, and the sightseeing sector, in Chapter 7.

Transit and Destination Infrastructure

Vancouver’s Tourism Master Plan acknowledges the importance of transportation infrastructure to

the tourism industry. Priorities for future development by the city include (Tourism Vancouver,
2013):

• Improving accessibility for people with disabilities

• Creating a transit loop between downtown attractions
• Supporting ferries in False Creek
 • Providing late-night transit
• Investigating and implementing a public bike share
• Developing more transit options along the Broadway corridor
• Working with taxi companies to explore a strategic plan for taxi operations
• Enhancing walkability by implementing recommendations from the Pedestrian Safety Study
and Action Plan

These action items were developed in consultation with industry stakeholders as well as residents,
and reflect the interrelated elements that make up a destination’s transportation infrastructure.

Rentals and Taxis

Today, when travellers aren’t using their own cars, automobile travel is traditionally split between
rental vehicles and taxis (including limousines).

Rentals

In North America, there are three main brands that represent approximately 85% of the rental car
business: Enterprise (includes National and Alamo), Hertz (includes Dollar and Thrifty), and Avis.
One of the reasons that brands have consolidated over time is the high fixed cost of operation as
vehicles are purchased, maintained, and disposed of. Fierce competition means prices are checked
and updated thousands of times a day. The business is also highly seasonal, with high traffic in
summer and spring, and so fleet management is critical for profitability. Rental companies tend to use
enplanements (the numbers of passengers travelling by air), as a measurement of market trends that
influence rental usage (DBRS, 2010).

Taxis

In BC, taxi licences are issued by the BC Passenger Transportation Board. In Vancouver, the right to
operate a taxi is based on a permit system, and each permit costs the original holder $100. But because
of the limited number of permits available, those who hold one are able to auction it off for
over $800,000 and keep the profit. As a result, passengers in Vancouver paid an average of 73% more
for the equivalent trip in Washington, D.C. Drivers from areas outside the city depositing passengers
in Vancouver are also not permitted to pick up fares on the return trip, having to drive across their
boundaries (Proctor, 2014).

Ridesharing apps like Uber, which allow people to find a ride using their mobile phone, have
emerged to exert influence on car travel in key destinations. In San Francisco, these apps have rapidly
undercut the taxi industry: according to the city’s transit authority, per month, trips by taxi have
plummeted from 1,424 in 2012 to 504 in 2014, even though taxi operators maintain a monopoly over
rides from the airport (Kuittinen, 2014). In New York City, however, the price of medallions (similar
to Vancouver’s taxi permits) continues to hover above $950,000. In large markets like Manhattan,
passengers continue to hail cabs on the street in the moment, with e-hails (electronic taxi hails) at
0.17% of the market (Brustein & Winter, 2014). The City of Vancouver opted to force Uber to roll
back after its initial release, and in 2014 placed the app on a six-month moratorium after pressure
from taxi operators who cited threats to the values of their licences as well as safety and monitoring
concerns (CTV News, 2014b).

As this and other examples illustrate, the transportation sector is vulnerable to regulatory,
technological, operational, and business trends. Let’s look at these in more detail.

Trends and Issues

This section explores issues directly relating to transportation today including fuel cost, labour, and
environmental impacts. For more information on one of the biggest trends in tourism, online travel
agencies (OTAs), and how online bookings impact the transportation sector, please see Chapter 7.

Fuel Cost

When it comes to moving people, fuel cost is critical. The cost of jet fuel is one of the single highest
factors in airline profitability. In 2013, the average cost was around $125 per barrel, which was $5
less than the previous year (IATA, 2014a). Cruise ships consume a lower grade of diesel than do land
vehicles, but they consume a lot of it. The QE2, for example, consumes roughly 380 tonnes of fuel
every day if travelling at 28.5 knots (Briggs, 2008).

Labour

As in all tourism-related sectors, cyclical labour shortages can significantly impact the transportation
industry. In the aviation sector, a forecast found that by 2032 the world’s airlines will need 460,000
additional pilots and 650,000 new maintenance technicians to service current and future aircraft. The
drive to find employees also extends to the maritime sector, where the International Maritime
Organization (IMO) launched a “Go to sea!” campaign to attract more workers to the field (PWC,
2012).

Environmental Impacts

In addition to fuel and labour costs, and regulations we’ve covered already, the transportation sector
has a significant impact on the natural environment.
 Air Impacts

According to the David Suzuki Foundation (2014), the aviation industry is responsible for 4% to 9%
of climate change impacts, and greenhouse gas emissions from flights have risen 83% since 1990.
Airline travel has a greater emissions impact than driving or taking the train per passenger kilometre,
which caused a bishop in the UK to famously declare that “Making selfish choices such as flying on
holiday [is] a symptom of sin” (Barrow, 2006).

Rail Impacts

Rail travel is widely regarded as one of the most environmentally friendly modes of transportation
due to its low carbon dioxide emissions. Railways come under fire outside of the tourism realm,
however, as freight shipping can produce hazards to resident health including an increased risk of
developing cancer and noise pollution (The Impact Project, 2012).

Cruise Impacts

Cruise ships can generate significant pollution from black water (containing human waste), grey water
(runoff from showers, dishwashers, sinks), bilge water (from the lowest compartment of the ship),
solid waste (trash), and chemical waste (cleaners, solvents, oil). One ship can create almost a million
litres of grey water, over 113,000 litres of black water, and over 140,000 litres of bilge water every
day. Depending on the regulations in the operating areas, ships can simply dump this waste directly
into the ocean. Ballast tanks, filled to keep the ship afloat, can be contaminated with species which
are then transported to other areas, disrupting sensitive ecosystems (Briggs, 2008).

Land Impacts

A recent study found that the impact of travel on land is highly dependent on the number of
passengers. Whereas travelling alone in a large SUV can have high emissions per person (as high as
flying), increasing the number of passengers, and using a smaller vehicle, can bring the impact down
to that of train travel (Science Daily, 2013).

For more information on the environmental impacts of the transportation sector, and how to mitigate
these, read Chapter 10.

Weather

As you’ve learned, the transportation sector can have an effect on climate change, and changes in
weather have a strong effect on transportation. According to Natural Resources Canada (2013), some
of these include:

• More drastic freeze-thaw cycles, destroying pavement and causing ruts in asphalt
• Increased precipitation causing landslides, washing out roads, and derailing trains
• Effects and costs of additional de-icing chemicals deployed on aircraft and runways (over 50
million litres were used worldwide in 2013)
• Delayed flights and sailings due to increased storm activity
 • Millions of dollars of infrastructure upgrades required as sea levels increase and flood
structures (replacing or relocating bridges, tunnels, ports, docks, dykes, helipads and airports)

The threat of climate change could significantly impact sea-level airports such as YVR, and some 50
additional registered airports across Canada that sit at five metres or less above sea level (Natural
Resources Canada, 2013).

For this reason, it’s important that the sector continue to press for innovations and greener
transportation choices, if only to ensure future financial costs are kept at bay.

Conclusion

Tourism, freight, and resource industries such as forestry and mining sometimes compete for
highways, waterways, and airways. It’s important for governments to engage with various
stakeholders and attempt to juggle various economic priorities — and for tourism to be at the table
during these discussions.

That’s why in 2015 the BC Ministry of Transportation released its 10-year plan, BC on the Move.
Groups like the Tourism Industry Association of BC actively polled their members in order to have
their concerns incorporated into the plan. These included highway signage and wayfaring, the future
of BC Ferries, and urban infrastructure improvements.

You can view the plan by visiting http://engage.gov.bc.ca/transportationplan/

This chapter has taken a brief look at one of the most complex, and vital, components of our industry.
Chapter 3 covers accommodations and is just as essential.
Case Study: Air North
Founded in 1977 by Joseph Sparling and Tom Wood, Air North is a regional airline providing
passenger and cargo service between Yukon and destinations including BC, Alberta, and Alaska. In
2012, Air North surpassed one million passengers carried. Employing over 200 people, the airline is
owned in significant part by the Vuntut Development Corporation, the economic arm of the Vuntut
Gwitchin First Nation (VGFN). In fact, one in 15 Yukoners owns a stake in the airline (Air North,
2015).

The ownership model has meant that economic returns are not always the priority for shareholders.
As stated on its website, “the maximization of profit is not the number one priority,” as air service is
a “lifeline” to the VGFN community. For this reason, service and pricing of flights is extremely
important, as are employment opportunities.

Visit the corporate information portion of the Air North website and answer the following
questions: http://www.flyairnorth.com/Experience/about-air-north.aspx

1. What is the number one priority of Air North? How is the company structured to ensure it
can meet its goals in this area?
2. What does Air North consider to be its competitive advantage? How does this differ from
other airlines?
3. Describe the investment portfolio of the Vuntut Development Corporation. What types of
companies does it own? Why might they have selected these types of initiatives?
4. List at least three groups that have a stake in the airline. What are their interests? Where do
their interests line up, and where do they compete?
5. In your opinion, would this regional airline model work in your community? Why or why
not?
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Attributions

Figure 2.1 Sky Jet by Jez is used under a CC-BY-NC-ND 2.0 license.

Figure 2.2 Airbus 380-800 by Ponte112 is used under a CC-BY-NC-SA 2.0 license.

Figure 2.3 airplane 036 by MamaMia05 is used under a CC-BY 2.0 license.

Figure 2.4 C.P.R. Mount Stephen House, Field, BC, 1909 by Musee McCord Museum has No known
copyright restrictions.

Figure 2.5 Sunset Cruise by Evan Leeson is used under a CC-BY-NC-SA 2.0 license.

Figure 2.6 Uniworld River Cruises River Beatrice in Passau Germany by Gary Bembridge is used under
a CC-BY 2.0 license.

Figure 2.7 BC Ferry by David Lewis is used under a CC-BY-NC-ND 2.0 license.

Figure 2.8 Lincoln Town Car by Nathan is used under a CC-BY-NC-ND 2.0 license.

Figure 2.9 Baltimore Airport by Lee Ruk is used under a CC-BY-SA 2.0 license.