DATE: Tuesday, March 11, 1997               TAG: 9703110274

SECTION: BUSINESS                PAGE: D1   EDITION: FINAL 

SOURCE: BY DEBBIE MESSINA, STAFF WRITER 

                                            LENGTH:   85 lines

VIRGINIA BEACH TOURISM RELIES ON ANNUAL CANDADIAN INVASION THE VACATIONING NORTHERNERS BEGIN ARRIVING THIS MONTH AND ARE EXPECTED TO SPEND ABOUT $39 MILLION THIS YEAR.

As Hampton Roads begins to shake off the winter chill this month, Canadians still shiver in sub-freezing temperatures and snow.

In search of warmth and sunshine, thousands of Canadians begin their annual migration to Virginia's coast in March. While the weather may not seem very balmy to us, it's downright tropical to these early starters.

About a half a million Canadians visit the Commonwealth each year, with the bulk of them traveling in March, April and May when hotels are not too full.

While Canadian visitation had fallen off for a couple of years due to a weak economy, the numbers began rebounding last year.

``Canadians are very important to us because they come in such numbers and because they come heavily in the first part of the year,'' said Martha Steger of Virginia Tourism Corp.

They are especially important to Virginia Beach, which is investing a growing amount of promotion dollars in Canada.

Canadians are the resort city's second largest market in terms of money spent, dropping about $39.5 million each year, said Ron Kuhlman, marketing and sales director for Convention and Visitor Development. The biggest market is the Washington metropolitan area at $63 million.

Canadians, primarily from Quebec but also from Ontario, represent 8 to 9 percent of the city's total visitors, whereas they account for 1 percent of tourists statewide.

That's because Canadians are drawn to the ocean surf, and Virginia Beach is the closest warm water beach to Canada. Most drive here, which is at least a 12-hour trip.

Surveys show many do little else except sunbathe when they're here.

In fact, a popular vacation package that features admission to entertainment and historical attractions throughout Hampton Roads was revamped for the Canadian traveler. The Family Fun package was renamed Sun Splash. Instead of including unlimited admissions to attractions it includes longer stays.

Their limited activities explains why Canadians are among the most frugal tourists, spending less money per day than the average Virginia Beach visitor. However, they make up for it by staying longer, spending money instead on hotel rooms and meals.

Canadians stay between 7 and 8 nights whereas the average visitor stays between 4 and 5 nights, Kuhlman said. As a result, their overall spending is the highest, an average of $1,420 per party.

Unlike the rest of the state which hosts Canadians mainly in the spring, Virginia Beach gets most of its Canadian visitors in the summer. July and August are particularly busy, when many Canadian businesses close for two week vacations and when sunbathing conditions are at their best. For a couple of years, 1994 and 1995, Canadian business was down largely because of an unstable economy.

The Canadian dollar was weak, which discouraged many from traveling to the United States because their money didn't buy as much. To improve the economy, Canada launched a ``see Canada first'' campaign to keep their money in their own country. It worked for a couple of years.

But last year, even though exchange rates did not improve much, Canadians began returning to the United States. Canadians are now getting about 73 cents for their dollar.

In Virginia Beach, for example, Canadians had comprised 8 to 9 percent of visitors. That percentage dropped to 5.1 percent in 1994, and to 4.1 percent in 1995.

But in the 1996 tourist season, Canadians again were almost at 8 percent.

Even when the numbers dipped, Virginia Beach wasn't scared off. In fact, promotional efforts were stepped up, Kuhlman said.

The local trend has pretty much followed national trends.

According to the Travel Industry Association of America, Canadian travel fell 13 percent in 1994 and another 2 percent in 1995. 1996 was a flat year. And 1997 should bring about a 2 percent increase.

After a couple years of depressed numbers, Florida, which is the top U.S. destination for Canadians, experienced what may be a record breaking year last year, with 17 percent growth in visits the first half of the year.

``Canadian travelers have gotten used to having a lower dollar since it's been going on for a while,'' Steger said. ``But that's offset by lodging and food which are cheaper in the United States and in Virginia.

``They figure one offsets the other.'' ILLUSTRATION: Color staff photo illustration by Bob Voros

Color photo

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