News Release Archive

ECONOMIC RENEWAL--KLM ROYAL DUTCH AIRLINES
-----------------------------------------------------------------
 Nova Scotia is moving aggressively to reinforce the province's
air access to the fastest growing markets of the province's $900
million tourism business, markets in continental
Europe --- primarily Germany.
 
The province is moving quickly to secure new international
carriers due to an imminent change of  service to Halifax by KLM
Royal Dutch Airlines. KLM has informed Nova Scotia that a new
international corporate policy will result in the airline not
servicing the Halifax to Amsterdam route with its own equipment
as of April 1, l996.

Economic Renewal Minister Robbie Harrison said today that his
department is making a business case to negotiate with Air Canada
for service from Germany to Halifax and is discussing with
Martinair -- a European charter carrier based in Amsterdam --- to
continue the Amsterdam to Halifax service.

"The Nova Scotia government and the tourism industry have spent
five years developing a lucrative tourism market for Nova Scotia
in Europe," Mr. Harrison said. "The growth has been progressive.
Last year 30,500 European travellers visited Nova Scotia."

"Based upon the l995 trends to date, we forecast a 25 per cent
increase in European visitation to the province and expect to
welcome more than 38,000 European visitors in l995," Mr. Harrison
said.

He said Nova Scotia plans to use the major European in-roads made
with KLM as a partner, to continue to build market strength in
Europe. An 18 month joint marketing accord with KLM has resulted
in unprecedented exposure for Nova Scotia in target European
markets. "The marketing accord served as an influential tool to
promote Nova Scotia as a travel destination overseas and has
returned its value to the province. It proved a good investment,"
Mr. Harrison said. 

Over the past five years Nova Scotia has moved from having five
continental European tour wholesalers offering Nova Scotia
tourism products, to 66 wholesalers in l995. It is expected that
the European tourism business will be worth $15 million to Nova
Scotia this year.

Mr. Harrison indicated that the KLM decision has given Nova
Scotia added impetus to increase cooperative efforts with new
carriers and to seek further European access.

"Efficient and effective air access is critical to Nova Scotia,"
Mr. Harrison said. "It is the basic building block of our
international tourism business and a fundamental element for our
business, trade and investment development."

The Economic Renewal Agency is executing a cooperative marketing
agreement with Icelandair as it prepares to introduce new service
from northern Europe to Halifax next May and is working with Air
Transa --- a Canadian charter carrier --- as it begins a weekly
flight to Halifax from Frankfurt, Germany next season.

"Air access to the world for a province that plans to grow and
diversify into the next century is essential. We will
aggressively pursue each and every air access opportunity that we
can," the minister said.

-30-

Contact: Steve Warburton
         902-424-8922

trp               Oct. 16, 1995