It was a year to forget for the Niagara Parks Commission.

The provincial agency saw a dramatic decline in foreign visitation in 2009.

Whether it was H1N1, which literally stopped international travel for a period of time, the coolest and wettest summer since 1992, rising fuel prices, or the rception of traffic delays at the border, the parks commission had a rough 12 months.

From May through November, Niagara saw a sharp drop in cross-border travel from the United States.

A 23.6% decline in June resulted in a 13% drop in revenues from U.S. customers in that month alone, said Joel Noden, an executive director with the parks commission.

For the whole year, U.S. border crossings were down, on average, 12.1% -- 16.1% for same-day crossings, 7.7% for overnight trips.

He said the launch of passport requirements in June also hurt border travel last year.

And with the U.S. -- the Niagara Parks' biggest market -- still posting an increase in jobless rates and a new harmonized sales tax slated to take effect July 1, this year looks to be a struggle too, said Noden.

The provincial government's decision to combine the GST and PST will add 8% to many currently exempt items. For example, an NPC adult adventure pass will rise to $45.14 from $42.74, adding almost $10 to the total for a family of four.

" Discretionary spending is already low, so this increase will have a further negative effect," said Noden.

He provided the bleak news during the parks commission's second public meeting last week.

He called the U.S. Niagara's "most valuable customer" in tourism, traditionally spendi

ng four times more than Canadians.

While Americans represent only 29% of total visitors, they generate 66% of NPC pass sales. Canadians, by contrast, make up 61% of total visits, but just 22% of pass sales.

With the Canadian dollar forecast to rise another 8%, Noden fears there will be less incentive for Americans to visit.

U.S. same-day trips to Ontario were down 21.6% in 2009. Sameday treks from there peaked in 1998/99 with 22 million border crossings. Last year, that was down to 5.7 million.

" U.S. visitation accounted for 29% of NPC visitation in 2009, down from a high of 65% in 2004," said Noden.

Noden said the ministry of finance forecasts the downward trend to continue until 2012 -- expected to be down 5.6% in 2010 and 2% in 2011.

" When we asked why only until 2012, we were told, 'It can't get much worse.'"

International trips to the parks dropped 14% in 2009. Noden said going into the spring, the parks commission actually saw a 23% hike in international visitors, but H1N1 and visa requirements for Mexicans "killed all our major markets."

Although international markets traditionally represent only 14% of NPC tourists, they generate 38% of all retail and 39% of all food revenues.

" It's important to note that our international visitors spend 10 times what a Canadian spends," said Noden.

The Greater Toronto Area has grown in marketing importance for the parks commission since the U.S. passport initiative. The GTA represents half of Canadian visitors.

The problem is, said Noden, the GTA has a "been there, done that attitude" about Niagara Falls.

"There is a need for some awareness there, but it's expensive to get into that market," he said.

The NPC joined with GO Transit, which had a successful summer experiment that saw trains run between Toronto, St. Catharines and Niagara Falls on weekends and holidays, averaging 1,200 passengers per day.

The parks commission is launching a new GTA initiative this year with Niagara businesses.

It will represent the region at international trade shows and spearhead a destination committee to develop a three-year marketing plan.

" Total revenues earned in 2009 were down despite unprecedented cutbacks in staffing and hours of operation," said Noden. "We tried everything we could to stay afloat."

He said while a new collective bargaining agreement with staff provides 5.5% in wage increases over the next four years, revenues are not forecast to meet this requirement.

" Expenditures for infrastructure renewal have been either reduced or delayed, placing tremendous stress on the organization."

Noden said deferred capital equipment, maintenance and repair projects stand at $17 million. Less than $1.5 million is available this year.

Parks commissioner Vince Kerrio said while 2009 was a difficult year for tourism, there are "encouraging things down the pipe" for Niagara.

He points to the new convention centre under construction, plans for a new people mover system in the city and the proposal to build a speedway in Fort Erie as "positive signs."

" There are some really good things on the horizon," he said.

The future isn't "a total disaster," Noden said.

" But the future isn't for a couple more years and we have to get there," he said.

rspiteri@nfreview.com