The elimination of the Visitor GST Rebate program could have an impact on the Yukon's international tourist market by up to 20 per cent, says Tourism and Culture Minister Elaine Taylor.

'It's not going to be good,' she said.

A study done by the Yukon's tourism partners in Europe is showing the decision by the federal Conservatives to axe the rebate, which reimburses international travellers for the GST they pay on goods and accommodation, could mean the territory will be facing a 10 to 20 per cent decline in European visitors.

'This move by the federal government has really set the industry reeling throughout Canada,' said Taylor.

September's decision was made without the consultation of the country's Tourism ministers, said Taylor. The ministers haven't met for more than three years, she said.

'It's my sincere belief that if we had been meeting as a council of Tourism ministers on a yearly basis, like other ministers do, the government would not have proceeded with this move to eliminate the GST visitor rebate program and we wouldn't have to have these serious discussions at the table.'

The council will be convening in Ottawa this weekend to urge the federal government to reconsider the position and to continue to operate the rebate program.

In the Yukon, the elimination of the rebate means international visitors will be charged six per cent more when they purchase travel trade packages.

'That just builds on the number of challenges before the tourism industries,' said Taylor. 'We, as a destination in Canada, are slowly losing ground as being a very competitive jurisdiction.'

A survey conducted by the Tourism department from June to September 2004 found that approximately nine per cent of the visitors to the territory were from international destinations, not including the United States.

European visitors have more than doubled over the last two years, with more than 4,500 Europeans arriving in the territory in 2004, accounting for almost 18 per cent of the tourism spending in the Yukon.

The announcement by the federal government to eliminate the rebate program came after the Yukon had already earmarked $1.6 million in the 2006-07 budget for the initial work on the renovation and expansion of the Whitehorse airport.

That was done after German airliner Condor suggested it may cease flights into the territory if an international transit lounge could not be provided.

Condor is estimated to bring $7 million in revenue to the Yukon's economy each year.

This past summer, approximately 4,500 Europeans flew into the territory on the airline with a six per cent growth in bookings on its flights to the Yukon since the 2005 season.

'Yukon has been very fortunate to see a steady increase of passengers coming through Europe and I remain confident that we'll continue to see those numbers flourish,' said Taylor.

The government is still committed to completing the airport improvements, she added.

'However, this move by the federal government just makes it all the more difficult to market.

'It is frustrating from the tourism perspective, because we do spend millions of dollars to market the Yukon and the rest of Canada as a destination of choice in this country, and now for this move to happen, it just places us in a less competitive place.'