What will be the impact of China’s decision to maintain restrictions on group tours from Canada?

The decision by China to exclude Canada from its list of approved travel destinations for group tours while lifting restrictions on other countries has dealt a significant blow to Canadian tourism, according to industry groups. China recently lifted COVID-19 restrictions on group tours for 78 additional countries, including the US, Australia, the UK, and most European nations. However, Canada was notably absent from the list. This exclusion will have a prolonged impact on Canada’s tourism revenue, as Chinese visitors spend a considerable amount of time in Canada and contribute an estimated $2 billion annually to the country’s economy. Beth Potter, President and CEO of the Tourism Industry Association of Canada, expressed the industry’s frustration, stating that this decision impedes their efforts to return to normal business operations.

In 2019, over 700,000 Chinese tourists visited Canada, making them the largest foreign spenders and the second-largest long-haul market. While individual travelers from China face no restrictions, organized group visits are still prohibited. This restriction not only affects group travelers but also makes it more challenging for solo travelers to visit Canada. The reduced number of flights due to these restrictions is already impacting the Canadian tourism industry, with China being the second-largest contributor after the US, according to travel consultant Claire Newell.

Chinese visitors are particularly important to Vancouver’s tourism economy, said Royce Chwin, President and CEO of Destination Vancouver, who described the decision as disappointing. The reduction in flights from China to Vancouver, from over 60 per week to only two carriers, has already had an immediate impact. Alberta is now focusing its international marketing efforts on other markets, such as the US, UK, France, Germany, and Japan, while the federal government has reported that 93% of tourism businesses in the country have returned to their 2019 levels by the end of last year.

China’s embassy in Ottawa, when asked about the exclusion of Canada from the approved travel list, cited concerns over the safety and rights of overseas Chinese citizens in light of recent incidents of anti-Asian sentiment and discriminatory acts in Canada. This decision comes at a time when relations between the two countries have deteriorated due to allegations of Chinese interference in Canadian politics.

China has been gradually lifting travel restrictions, with the recent announcement marking the third batch of countries approved for group tours. The staggered approach to approvals has been observed, with countries experiencing political and trade tensions with China taking longer to gain approval. The Canadian government is working to have the restrictions lifted but has not provided a specific timeline. The government emphasizes the importance of people-to-people ties and cultural exchanges in fostering mutual understanding and building lasting relationships between Canada and China.

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