TIABC Voice of Tourism Newsletter – June 6, 2025

GUEST CEO MESSAGE
MICHAEL J. BALLINGALL, Senior VP of Sales & Marketing, Big White Ski Resort, TIABC Director and Chair of the Policy Committee

Canadian tourism is built on the promise of breathtaking landscapes, vibrant urban centres, and memorable experiences year-round. However, many of us in the tourism industry find that high airfares present a formidable challenge in delivering on that promise. From my vantage point at Big White Ski Resort, where our guests come from all over the world and all across Canada, affordability is a top concern when planning a winter getaway. Airfare costs often deter prospective visitors before they even book. As someone who has spent decades in the tourism sector, I have seen firsthand how these barriers impact not only resorts like ours but local communities, small businesses, and Canada’s overall tourism potential.

The challenges we face are caused by a number of factors. For starters, in Canada we rely on a user-pay framework for many aviation-related costs. For example, many airports finance themselves through programs like Airport Improvement Fees (AIFs). Nav Canada, which is responsible for air traffic control, likewise recovers its costs from the airlines and by extension from passengers through ticket prices. While this model has its merits—chiefly transparency and self-sufficiency—it also means that every fee or surcharge (e.g. fuel) adds a premium to the final price of a ticket. Compared to countries like the United States where government subsidies fund critical services, many of these costs land directly on the consumer.

Beyond base fares, travellers face an array of additional fees for everything from checked luggage to seat selection. While many airlines worldwide have “unbundled” or “decoupled” these extras from the ticket price, it can be startling for a consumer to see how much these fees add up. This not only makes trips to Canadian destinations more expensive but can also deter the price-sensitive traveler.

We cannot forget the physical reality that Canada is vast, with numerous remote or thinly populated regions. This low population density means there are fewer travellers on certain routes, raising the per-passenger cost for airlines. Unlike more densely populated nations where high volumes drive down costs our carriers and airports must spread their expenses over a smaller pool of passengers. This dynamic is especially challenging for smaller Canadian airports and can limit route frequency and availability.

For those of us in the tourism sector, high airfare can be the difference between a thriving season and a slow one. Ski resorts, hotels, restaurants, attractions, and countless other businesses depend on a steady flow of visitors from around the globe. High flight costs often cause potential travellers to think twice or pivot to competing destinations…sometimes within Canada, but often to the United States or Europe where comparable flights can be cheaper. The knock-on effect is felt in every corner of our tourism ecosystem, from lost income for family-run lodges, to reduced seasonal staffing opportunities for local communities.

One of the first steps we, as a collective tourism industry, can take is to advocate for a review of Canada’s aviation cost structures. Provincial and national tourism bodies—such as the Tourism Industry Association of BC (TIABC) and other stakeholders—can come together to engage policymakers in an honest examination of how airport rent, security fees, and other surcharges are determined. Could there be a model that balances financial viability with affordability? Perhaps a reduction or restructuring of airport rents, or a partial government subsidy of security and navigation fees, would help bring Canadian fares in line with global norms.

As tourism operators, we can better educate visitors about the elements that make up a Canadian airfare. We should clearly communicate how much of the ticket price stems from taxes, fees, and surcharges versus the base fare. Transparency builds trust and can help travellers see that no single party is solely responsible for the higher costs. When travellers understand the breakdown, it may prompt greater public support for policy changes or more willingness to pay for key services (like airport improvements) if the value is clearly explained.

Working hand-in-hand with airlines and airports is crucial. Airports often rely on revenue from passenger fees to fund expansions, and in many cases, those expansions (new terminals, upgraded amenities) directly benefit tourism operators. By collaborating—exchanging passenger data, demand forecasts, and marketing resources—we can potentially find mutually beneficial opportunities. Airlines may, for example, be more willing to test new routes or seasonal services if they receive marketing and promotional support from local tourism boards or associations like TIABC. This sort of coordinated approach can help spread costs and risks more evenly, ultimately leading to better flight coverage and potentially lower fares on underserved routes.

Canada’s emerging ultra-low-cost carriers (ULCCs), such as Flair and others, have shown promise in introducing competitive fares. For tourism destinations, partnering with these carriers can be a game-changer. By offering supportive infrastructure, marketing campaigns, or route guarantees, we can encourage ULCCs to expand service, keeping larger airlines price-competitive. This helps fill airplanes and puts more travellers in our hotels, ski resorts, and restaurants, ultimately benefiting everyone in the tourism value chain.

For regions where air service is critically important—especially remote or northern communities—there may be merit in exploring targeted subsidies. Similar to the US’s Essential Air Service program, a Canadian counterpart could ensure consistent air access at reduced fares, helping local economies remain connected to broader tourism flows. While this approach involves more public funding, it ensures that remote communities, many of which are tourism gems in their own right, are not cut off from potential growth.

High airfare isn’t just a transportation issue; it’s a tourism issue, an economic development issue, and a matter of Canadian competitiveness on the global stage. For Big White Ski Resort and countless other destinations across the country, more affordable flights could translate into a stronger winter and summer visitor season, more jobs, and more stable year-round economies. But no single solution will solve the affordability problem overnight. We need a collective approach—policymakers, industry stakeholders, and the traveling public—to examine current frameworks, champion evidence-based reforms, and embrace creative partnerships. If we commit to transparent, collaborative efforts, we can keep our aviation system strong while ensuring that more people, both Canadian and international, have the opportunity to explore the unrivalled beauty of British Columbia and beyond.

Now is the time to come together under organizations like TIABC, look at the data, discuss the tough questions around subsidies and fees, and experiment with innovative partnerships. As an industry leader, I believe in our collective ability to find ways to balance cost recovery with accessibility, to keep our skies open and welcoming for all. After all, when we make it easier to visit, we’re not just boosting our bottom line, we’re championing the very best of Canadian hospitality.

Michael J. is chair of TIABC’s Policy Committee. The views expressed here are his own. TIABC’s Policy Committee is working with its provincial, territorial and federal counterparts on an aviation policy which will be finalized and presented to the new federal government in the coming weeks.

Michael J. Ballingall

Director, TIABC