How to help Canadian tourism
Calgary Herald
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| Chinese student and tourist Li Qui Chen, 20, stood on the bus with others in the group after they were welcomed at the Calgary International Airport on August 20, 2010. |
The arrival of the first "approved destination" group of tourists from mainland China last week shows how much has changed in the world of travel. Canada must change with it.
The 381 tourists were the first to arrive under an agreement between the two countries that took more than a decade to negotiate. Canada finally received the designation of Approved Destination Status, opening the door to a market of millions of new international tourists a year, and billions of direct and indirect tourism dollars.
The designation allows tourism companies in China to actively promote Canadian tours, now that permission for leisure travel has been granted by the Chinese government, provided citizens travel in pre-sold tour groups. Previously, they could only obtain exit visas to Canada if travelling for study, visiting friends and relatives, business or independent tourism activities.
The deal gives Canada an advantage in a country of 1.3 billion people, with a burgeoning middle class about to discover the world. The United Nations estimates by 2020, some 100 million Chinese citizens will be travelling abroad yearly.
While this is a victory, Canada has miles to go, and must deal with policies and attitudes still firmly stuck in the past. Gone are the days of a Canadian dollar valued at 65-cents U.S., yet we still rely heavily on U.S. tourists to fuel our $70-billion tourism industry.
According to a presentation to the Herald editorial board by the Tourism Industry Association of Canada (TIAC), 24.7 million international visitors came to Canada in 2009, of whom 20.5 million were from the U.S.
Yet, overall visits keep declining, and Canada's position as a top destination for international tourists is plunging. It went from seventh place in 2002 to 15th place in 2009, the only country among the top competitors to lose its place to emerging markets such as Turkey, Mexico, Malaysia and Russia.
Canada, with a dollar that's now around par with the U.S. currency, can indeed compete without a permanent "On Sale" sign to draw American tourists. We have natural beauty, clean air, safe travel, vibrant, diversified cities, and much more to offer.
But the federal government must step in and deal with what David Goldstein, president and CEO of TIAC, says are structural issues creating barriers to competition. Take the exorbitant airport rents, which are downloaded as landing fees and absorbed by the traveller. (So is the full cost of security charged to passengers.)
It's so expensive to land a plane in Canada, according to Goldstein, it stops foreign airlines from coming in and competing. Toronto's Pearson International Airport has the second-highest landing fees in the world, and must compete with nearby U.S. airports much lower fees. Ottawa needs to reverse its punitive rent policy, introduced by the Chretien government in the 1990s, so that our airports can compete with those in the U.S., which are subsidized.
Visa requirements for tourists from Mexico, India and other emerging markets also need to be revisited, and relaxed where possible. The system must allow for immigration concerns to be addressed, without hindering the free flow of tourism.
The deal with China is an example of positive steps Canada can take to regain its position as a leading travel destination. It's time for the feds to help tourism reach new heights in Canada by removing structural barriers to this vital industry.
