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Gas prices add to Yukon tourism industry's worries about slow season

Last Updated: Tuesday, April 29, 2008 | 12:47 PM ET

Record high gas prices have some in the Yukon's tourism industry nervous about this summer's tourist season, which is already showing signs of a slow start.

The Tourism Industry Association of the Yukon, which wrapped up its annual conference on Sunday in Haines, Alaska, predicts a drop in the number of potential visitors this summer.

Operators have said the number of cruise ship bookings to Alaska is down, meaning not as many cruise ship passengers may be making road trips into the Yukon.

As well, several Yukon tour companies have reported a drop in bookings as the summer months approach.

"We are facing a couple of issues that have been in the media a lot lately, like high fuel prices, [a] slowdown in the U.S. economy, confusion about passports, the U.S. election, and things like that," Pierre Germain, the Yukon government's director of tourism, told CBC News.

With pump prices approaching $1.40 a litre this week in the Yukon, visitors to the territory may have to save some of their travel budgets for gas alone, especially for those who want to explore outside of Whitehorse.

Meanwhile, some tourism operators are also wondering if they can find enough seasonal staff to look after the influx of visitors.

Business owners who had a difficult time finding workers for last summer's tourism jobs are expecting more of the same this year, said Patti Balsillie, executive director of the Tourism Industry Association.

"I suspect that the labour market crisis for the tourism industry — and in particular, the hospitality sector — has been challenged over the years and will continue to be challenged in this year," Balsillie said.

'Holidays are an important part of their quality of life'

But the Yukon government's Germain said he is optimistic that the industry can survive the high gas prices and other challenges.

"Having been in tourism for the past 17 years, I've recognized that every year there is something that we're facing that could impact [us]," he said.

"But you know what? People continue to come, because people believe that holidays are an important part of their quality of life."

One sector of the Yukon's tourism industry said it hasn't felt the pinch from high gas prices: the recreational vehicle rental sector, which rents out RVs to tourists wanting to tour the territory.

A large number of the Yukon's visitors come from Europe, which has been accustomed to higher gas prices. As a result, at least one Whitehorse RV rental agency reported seeing no drop in reservations.

And to help tourists and Yukoners hit the road this summer, the territorial government started a new "511" phone and online service with updated information on road conditions, avalanche threats, construction delays and weather reports for highways in the territory.

The 511 service, launched on Friday, makes the Yukon the second Canadian jurisdiction to implement such a system for travellers, according to the territory's Department of Highways and Public Works. Similar services are already available in much of the U.S.

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