CANADA IS OPEN TO CHINA

Approved Destination Status

About ADS & Process and Requirements for Chinese travelers to visit Canada

Canada has approved destination Status in China

Approved Destination Status (ADS) is a unique policy adopted by the Chinese government to control its outbound tourism.

Canada has been acquired ADS came on December 3, 2009 during Prime Minister Stephen Harper’s first trip to China.

ADS History

Chinese outbound tourism started in early 1983 when Guangdong province could visit Hong Kong and Macau.

China introduced ADS in 1988 starting with destination in Thailand, and in 1990 in Singapore, Malaysia, some more in South Asia

In 1998, China introduced ADS in not Asia countries such as Australia and New Zealand.

China Outbound Tourists

License for tour companies in China

Operating at least 1 year domestic and incoming tourism only

No record of violation of laws Have mandatory insurance coverage

which is issued by the government (Domestic...300,000RMB, International...600,000RMB)

Cost insurance deposit to operate 1 million RMB to 1.6 million RMB.

Requirements for Chinese travelers to visit Canada

Passport Tourist Visa

› Single Visa› Multiple visa› Transit visa

Application fee (250 CNY) Medical exam Letter of invitation

Process of visa application

Get passport from Chinese government Apply visa application Wait around 2 months to get through

all application form (Send additional documents when the

Canadian embassy requests) Take airplane to Canada Interview with Canada immigration

Canadian Tourism Operators

How will the new designation affect Canadian Tourism Operators?

Canada now able to tap into the worlds largest tourism market

Allows tourism operators and travel agencies to launch massive marketing campaigns

Strengthens our operations as they bring in additional business

StrengthsThe new designation will strengthen

our country and economy from coast to coast

An estimated 30,000 tourism visits will have a significant impact on Canada’s tourism sectors

Strong economic impact on Canada Increase awareness in Canadian hospitality

and tourism

Opportunities

Expansion-new locations-larger operations

Superior quality products Increased wages

-employees Increase in outbound adventures

Threats

Re-evaluate way of doing business May distract business from other

travelers Over customized tours for Chinese

tourists Loss of true Canadian travel

New Chapter for Canadian Tourism

With pristine natural environments and exciting unique cities, Canada is on top of the tourism charts

ADS allows for a win-win situation between both

countries

China Market Definition

Some Facts 2008, China was the 6th largest

international market to British Columbia

Canada it ranked 9th

British Columbia receives 62.2% of Canada’s Chinese market

2007, 41 million Chinese citizens travelled internationally

2009, 50 million (22% increase

› WTO Expects the market to grow 13% annually

China Overnight Entries to Canada by Province (2008)

BC62%

Ontario35%

Quebec2%

Other2%

Where does the Chinese Traveler travelThe Competition for Chinese Market

Where do Chinese Travelers TravelOur Competitors 90% of Chinese

outbound travel was located in Asia and 10% outside of Asia

United States has a greater awareness in China

› is viewed as providing greater amounts of activities and having more modern cities

•Hong Kong

1

•Macau

2

•Vietnam

3

•Russia

4

•Thailand

5

•Singapore

6

•South Korea

7

•Japan

8

•Malaysia

9

•Germany

10

•Australia

11

•United States

12

•Italy

13

•Belgium

14

•Mongolia

15

•CANADA

16

•United Kingdom

17

•New Zealand

18

•Switzerland

19

•Kazakhstan

20

Several countries within Europe have already acquired ADS

Europe is also a preferred destination due to the opportunity to visit many different countries within a single trip

89%

6%3%

1%1%

Chinese Outbound Travel Destinations Asia

Europe

America

Oceania

Africa

• Australia was the first western country to gain ADS

• Considered a mature destination

Who is the Chinese travelerCorporate, Government, Leisure

Categories of Travelers

Gov-ern-ment35%

Corporate26%

Leisure39%

Government/Official Travelers

Defined as anyone who is employed by the government and or public services

Carry an official passport,

› Giving different privileges

Have a lot of discretionary income

› They spend a lot on retail and shopping

Corporate/Business Travelers

Purpose is to build relationships within business and understand foreign business

10% travel for business alone

60% will combine their travels with both business and pleasure

Business Incentive Trips 30% of corporate travellers are on

incentive trips

largest incentive trip was in 2005 with 15,000 people travelling to Australia

› second largest was to Thailand and consisted of 6,000 people

› incentive trips take place in Europe and around the world and can be as large as 1,000 people

travel agencies are regulated causing corporate and business travel to be organised via a network of private relations

Leisure/Private Travelers Leisure travel is a new concept in China

Funded privately by individual travellers

Travel is an educational experience

Visiting foreign countries for the first time

Travel in groups and tours

Visa procedures are handled by official Chinese travel agents

Individual (Private) Travelers

Normally are able to speak two or more languages

Responsible for processing their own visas Note: that individual private travel is not

acknowledged by the Chinese government as tourism

A List Of Public Holidays

Special Occasion Date Amount of Days Off

New Years Day January 1st 1 Day Off

Chinese New Year(Spring Festival)

Dependent upon the Lunar Calendar

3 Days Off, School Vacation of 4 Weeks

Tombs Sweeping Festival

April 5 1 Day Off

Dragon Boat Festival Dependant Upon Lunar Calendar

1 Day Off

Mid Autumn Festival September, Depending on Lunar Calendar

1 Day Off

National Day October 1st – 3rd 3 Days Off

B.C. and Ontario are the most visited provinces by people from China

Canadian tourism is supported by a strong domestic market › receiving Chinese tourists is the gravy on

top of an already thriving domestic profit,

Canada and China

Conclusion Tourism operators/travel agents need to

analyze the › Strengths› Weaknesses› opportunities › Threats

of marketing to the massive Chinese population

But...Even if the costs are immense, tourism operators need to understand this emerging market within Canada

Thank you,

Chris, Geoff, Hitomi