British Columbia's tourism sector is looking at alternative markets, as it tries to offset the decline in the number of visitors from the United States.

From January 2002 to November 2007, the total number of visitors entering B.C. from the U.S. fell by 27 per cent, according to BC Stats, the provincial government's statistical agency.

A decline in the number of U.S. travellers visiting B.C. is putting the province's tourism sector under pressure to seek out alternative markets.
(CBC)

The drop is being attributed to the soaring loonie.

"Given that the Canadian dollar is expected to remain at just under par with the greenback over the short term, travel to B.C. will remain less of a bargain for U.S. travellers,''  BC Stats said in a report.

Victoria carriage driver Caitlyn MacDonald said the decline in the number of U.S. visitors has been highly noticeable in B.C.'s capital.

"They used to come in a lot more on weekends, spend a lot more money and have a lot more fun, and we've noticed a drop off in that,'' she said.

To make up for the tourist shortfall, travel industry officials said they are looking to Mexico, the United Kingdom and even Australia.

"Australia is another strong market for us,'' said Francis Parkinson, general manager of the Vancouver Hotel Association.

Hotels in Vancouver are expecting to be about 80 per cent full this year, about the same as last year.

In a bid to keep occupancy rates high, hotel operators plan to offer special rates to domestic tourists from B.C. and Alberta, said Parkinson.

Meanwhile, Tourism BC says it is turning to the web like never before, offering daily snow reports on Facebook and skiing videos on YouTube.

Concern about the drop in U.S. traffic has prompted the provincial government to raise Tourism BC's budget, from $50 million a year to $70 million by 2010.

However, the pledge comes with a catch. The agency only gets that money if it can show that hotel rooms are filling up.