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OMCA Regional Outreach Meeting

OMCA Regional Outreach Meeting. Today’s Agenda. 9:0-10:30 Welcome by Doug Switzer & State of the Industry/Association 10:30-10:45 Break 10:45–11:30 HST/GST Tax Seminar - Minimizing Your Tax Burden 11:30 –12:00 GroupConnect Seminar – Ann Fairley 12:00–12:45 Buffet Lunch

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OMCA Regional Outreach Meeting

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  1. OMCA Regional Outreach Meeting

  2. Today’s Agenda • 9:0-10:30 Welcome by Doug Switzer & State of the Industry/Association • 10:30-10:45 Break • 10:45–11:30 HST/GST Tax Seminar - Minimizing Your Tax Burden • 11:30 –12:00GroupConnect Seminar – Ann Fairley • 12:00–12:45 Buffet Lunch • 12:45-1:15 Industry Issues – Dave Carroll • 1:15–2:30 Roundtable Discussions (Operators and Suppliers) – Ann Fairley

  3. Today’s Business Climate Generally sunny forecast: Bank of Canada - “external headwinds facing Canada have abated somewhat” • Canadian economy will grow by 2.4 per cent in both 2012 and 2013 before moderating to 2.2 per cent in 2014 and in the US TD projects growth of 2.2% in 2012, improving to 2.4% in 2013 and around 3.0% in 2014 and 2015. –peoples investments should do much better. • Unemployment rate projected to drop from 7.5% to 6.6% by 2015 in Canada and from 8.2% to an average of 6.2% by 2015. At the same time personal disposable income is also projected to rise – people will have more job security and more money to spend. • Inflation only around 2% - could mean interest rate increases soon, but modest and gradual. – again people should feel financially secure

  4. Today’s Business Climate • Oil prices will rise in 2012 and 2013 due to better-than-expected global economic conditions and tighter-than-expected supplies – fuel costs for cars will increase making group travel an attractive option to personal automobiles. • Due to high oil prices - value of the Canadian dollar compared to US dollar expected to remain at or near par for the foreseeable future – travel to the US will remain strong

  5. Storm Clouds… • Canadian household debt-to-income ratio reached a record level of 151% in the 4th quarter of 2011. Ratio could soon hit 160% – the level at which both U.S. and U.K. households got into trouble. • Housing bubble – TD- resale housing market is overvalued by roughly 10-15% and an oversupply of new home projects exists. These excesses should be gradually unwound over 2013 and 2014, with higher interest rates the impetus for the adjustment.

  6. Tourism Sector Outlook Things are better – 61% of tour operators are somewhat or very optimistic for 2012 (Wells Fargo) • Travel to the US is up 5% this year and expected to grow by another 5% next year • Domestic travel expected to grow 1.8% • Anecdotal evidence that things are improving

  7. Canada-US Travel Forecast • According to the US Commercial Service, Canada posted record visitation to the U.S. at 21 million visitors in 2011; up 5 percent from 2010, and a further 5% increase is projected for 2012.  • Canada continued to deliver the largest inbound travel market to the United States in 2011 at 33.7% of 62.3 million international visitors.       • International Travel is one of the largest exports of services for the United States, accounting for 43% of total U.S. services exports to Canada in 2011.

  8. According to BMO study: • During the third quarter 2011, spending by Canadians travelling abroad grew 11.24 per cent to $7.3 billion compared to the same quarter in 2010 -of that, they spent $4 billion in the United States, up 18 per cent from the third quarter of 2010. • The number of foreign trips (excluding the U.S.) increased by 3.3 per cent, while trips to the United States increased by 6.7 per cent with New York, Florida and Washington being the most visited states.

  9. Recent Government Actions in Support of US Travel 1) Increase in duty free allowances supports short term shopping excursions. New Limits as of June 1, 2012:

  10. 2) Canada-US Border Accord should make border more efficient – reliable. What OMCA/MCC are discussing with the government: • Pre – Clearance/Manifests -creation of a “preclearance” program based on manifests that facilitates the ability of regular bus operators and passengers to reduce time spent at the border. Adopt the eAPIS system and pre-approved passenger electronic ticketing systems similar to rail and air mode requirements. • Alternative Access Lanes - allow buses to use the approach lanes currently dedicated to commercial FAST and/or NEXUS lanes to access the port.  • Equitable Treatment of Charter Buses - Policies and procedures should be standardized so that scheduled and chartered buses are processed in a routine manner. • Adapt Technology - Ports should be furnished with hand-held technology to easily inspect bus passengers’ documents, as an alternative to waiting in line to access traditional primary workstations. :

  11. Canadian Domestic Travel BMO projects more modest growth. • 1.8 per cent growth in 2012 • Top destinations are: Ontario, Quebec and British Columbia • Tourism spending in Canada is expected to rise by 3.6 per cent to $40.5 billion this year, largely driven by domestic travel. Generate 97.6 million overnight stays at hotels, inns and bed & breakfast facilities. • However, In the most recent edition of the UNWTO World Tourism Barometer, Canada slipped to 18th in the world in international arrivals, falling behind Thailand, Saudi Arabia and Greece. With a drop of 0.8% in international arrivals, Canada is the only country in the top 25 to have shown a loss last year. • We have to do more to promote and support Canada’s domestic tourism industry!

  12. OMCA Update Focus for 2012 is on delivering value to our members through: • Helping Build Business Connections • Communications/Education • Services/Resources • Government Relations

  13. Helping Build Business Connections • Tour Summit • OMCA Conference/Marketplace • MCC Conference • Ontario Transportation Expo • Golf Tournament • Website and Resource Guide Listing • GroupConnect/CharterBusConnect

  14. Communications / Education • OMCA and MCC Newsletters – Supplier News • Special Bulletins • Road Explorer • Education sessions at events • Regional meetings • Website • Twitter (@OntMotorCoach) /Facebook

  15. Services / Resources • DLSC • MCC’s Drug & Alcohol On-Line Training Program for Supervisors • Regulatory compliance materials and guides • Tour planning guides • Staff

  16. Government Relations OMCA and MCC are working on a wide variety of issues: • Border Crossing Issues - Advance Manifests, Canada-USA Perimeter Security Action Plan, surface passenger transportation security • CBSA - Immigration & Refugee Protection Act – Carrier and Driver Responsibilities • Worker Compensation Premiums – Alternative Assessment Program (inter-provincial operators) • Medical reciprocity agreement USA-Canada re: Code “W” for drivers with medical waivers • Seat Belts - NHTSA notice of proposed rulemaking, Transport Canada review, driver seat belt requirements (3 point vs 2 point), and provincial seat belt usage laws (bus passengers) • Accessibility – Inter-city Bus Code of Practice Re-write (Completed 2011) • SmartDriver for Motor Coach (Natural Resources Canada - FleetSmart) • Cabotage – border town carriers • EOBR’s – CCMTA Draft Standard and FMCSA Notice of Proposed Rulemaking • Canadian Driver Hours of Service regulations and the US Hours of Service Review • Daily vehicle inspections (National Safety Code Standard 13) • Unified Carrier Registration (UCR) fees (US DOT) • FMCSA CSA carrier monitoring/rating system • Axle Weights and Coach Dimensions – National MOU, Quebec regulations • CVSA Inspections and Out-of-Service Criteria (eg. battery corrosion) • Safety of 15-passenger vans • Bio-diesel fuel • HST interpretation • IRP – Charter Bus Exemption • Port passes in Vancouver • Parking in Toronto • Access to HOV lanes for coaches • Periodic Motor Vehicle Inspection – National Safety Code Standard 11-B • Contracting out of transit services • ONTC • Future of Economic Regulation • Pan Am games • Tax Issues

  17. ONTC • ONTC was a major provider of both scheduled and charter bus services in the north • Government has decided to terminate subsidy / operations • Infrastructure Ontario will be transferring bus operations/assets to the private sector

  18. Contracting Out • Drummond submission estimated operational cost savings of 21% - some $50 million / year for GO • Drummond Recommendation 12-3: “… review the roles and operations of public and private mass transit service providers in the Greater Toronto and Hamilton Area and services provided by Ontario Northland Transportation Commission in the north to find efficiencies in those regions’ transportation networks. Act on that evidence to improve the efficiency of those services.” • ONTC is gone – GO discussions ongoing

  19. Economic Regulation • Longstanding, and divisive, issue • Government has launched review headed by PA Deepika Damerla • Currently consulting • OMCA survey of members

  20. Executive Interviews and Online Survey • Respondents: • Large/small operators • From all regions of Ontario • Bus/Tour operators – Provide • schedule/charter/school bus service • Executive interviews: • 35 executive interviews completed • Approx. 15 minutes in length • 12 questions • Data analyzed and coded • Online Survey: • 43 online surveys completed • 17 questions • Data analyzed and coded Methodology

  21. Key Themes: • Members are split in terms of supporting or opposing economic deregulation. • Protecting business/industry Vs. Growing business/industry • Believe the current administration and enforcement by the OHTB and the Ministry of Transportation is ineffective. • Maintaining safety is of high importance to members. • Many members feel that the current system of economic regulation already feels deregulated. Main Findings

  22. Current Regulations – Operators How does the current system of economic regulation affect your company? Advantages or disadvantages? Statistical Breakdown of responses 4 respondents stated that they believe the industry is “already deregulated”, while 8 stated that it is currently “too easy to get a license” Executive Interviews

  23. Current Regulations – Operators Members who thought the current system was beneficial to their business said: Members who thought the current system was harmful to their businesssaid:

  24. How prepared is your company for the possible economic deregulation of the Ontario bus industry? Deregulation 73% of respondents feel that they are either somewhat or fully prepared for economic deregulation Response Rate: 30/43 OnlineSurvey

  25. How would you describe the enforcement and administration of current regulations? Enforcement – Current System Executive Interviews

  26. Safety – Deregulation If Ontario decided to deregulate, what actions or policies do you think it should include to ensure that operators and the public are not adversely affected? Statistical break down of responses Executive Interviews

  27. OMCA’s Position on Regulation • Neutral on the issue of whether economic regulation is a good thing or not. • Monitor the process and keep members informed of developments • Act as resource to government • Actively lobby for new safety rules for new entrants

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