Many Canadian travellers will find it more economical to vacation closer to home this year. The already high cost of air travel has substantially increased due to higher fares, tariffs, and the introduction of fuel surcharges. Long distance car trips have also become much more expensive since the price of a tank of gas has skyrocketed. Further, market analysts are predicting that gas prices will continue to rise over the summer. The summer vacation plans of many Canadians are certain to be affected by the rising cost of long distant travel.

Some of Ontario's most prominent associations of resort owners and operators are keeping a close eye on the market trends and are providing its members with detailed industry surveys and reports. Traditionally, many Canadians have used their summer holidays to take major trips, travelling overseas or taking long road trips to destinations in the U.S. or to Canada's east or west coasts. However, some of these resort associations are forecasting that the soaring gas prices and airline fuel surcharges may convince Canadians to forgo air travel and lead them to vacation in their own province. This development may be good news for Ontario's resort operators, especially for hospitality and tourism properties in Southern Ontario and Central Ontario, located within a couple hours drive of the over 5.5 million people living in the Greater Toronto Area (GTA).

Ontario resorts have witnessed a decline in American visitors over the past few years. The low U.S. dollar in relation to the high flying Loonie, as well as the weak American economy and high gas prices, will keep even more Americans at home this year. Additionally, numerous Canadians will also be sticking closer to home this summer, due to rising travel costs. Many Ontario resort operators see this as an opportunity. An Ontario resort holiday is the perfect alternative for vacationers who want a summer holiday, but don't want to drive a great distance or to fly to get there. Some of member resorts are even offering customers incentives to further reduce the price of vacationing, such as summer gas discounts and rebates.

The tourism industry in the province of Ontario has undergone a number of challenges over the past few years. Today, the Canadian dollar remains high in relation to many other currencies. This, combined with a slow down in some foreign economies and the rising price of gasoline, will further reduce the number of American and International tourists coming into the province. In addition, baby boomer demographics have resulted in an increasing empty nester and senior travel market while the traditional family unit summer vacation has slowed with the children of the baby boom generation off to university or starting work and establishing their own family units. Clearly, the climate of business is changing. Those in Ontario's tourism and travel industry may find it necessary to change their advertising focus to attract the large market of potential customers that is already on their doorstep.