The Impact of Fewer Chinese Visitors on Canada’s Tourism and the Road Ahead

By | September 15, 2023 | Insights

Canada’s tourism faces a challenge with fewer Chinese visitors. Discover innovative strategies for recovery. Dive in now!

Canada’s travel and tourism industry enjoyed a spirited revival after the long, dormant stretch of 2020 due to the COVID-19 pandemic. But now, a new challenge emerges as China, a dominant leader in Canada’s tourism sector, leaves Canada off its list of approved travel destinations.

On August 10, a statement from the Chinese foreign ministry revealed a new list of approved travel destinations, which added 78 countries, notably including the U.S. However, Canada was conspicuously absent. This list serves as a guide for travel agents in mainland China when suggesting and booking overseas trips for Chinese nationals. The implications of this exclusion are profound, potentially rendering Canada’s travel industry at a competitive disadvantage during a crucial recovery period. 

The sheer volume of Chinese tourists and the capital they brought to Canadian shores was staggering. With an influx of over C$1 billion every year before the pandemic, China emerged as a powerhouse for the Canadian tourism industry. According to Destination Canada, not only was China the primary source of tourists from the Asia-Pacific region in 2019, but it also outspent tourists from any other country. This makes the current scenario of exclusion particularly jarring, posing a setback to Canada’s post-pandemic recovery.

For many Canadian businesses, the Chinese tourist was a major source of revenue. The prospect of fewer visitors from China means that these establishments could be staring at a considerable daily revenue deficit. Tourist havens, such as the iconic Niagara Falls, previously swarmed by Chinese tour groups, might now bear a deserted look. However, on a positive note, the number of visitors from India has almost doubled compared to pre-pandemic figures.

What Does This Mean for Marketing?

  1. Digital Outreach: In the age of the internet, a setback can become an opportunity. Canadian tourism businesses can recalibrate their focus towards digital platforms. Engaging content, social media campaigns, partnerships with influencers, and innovative approaches like virtual tours can open doors to new demographics.
  2. Diversification: Relying on one dominant market is a precarious strategy. Although there’s been an encouraging uptick in visitors from India, Canadian tourism shouldn’t rest its laurels here. It’s essential to scout and invest in other potential markets.
  3. Local Tourism: The beauty of Canada is expansive and diverse. Promoting local tourism and urging Canadians to explore their backyard can give a much-needed boost to the internal tourism economy.

Being left off China’s approved list is undoubtedly a curveball for Canada’s tourism industry. However, challenges often bring out the best in nations. This is Canada’s moment for introspection and innovation. The path ahead calls for resilience, adaptability, and a forward-thinking approach, where Canada doesn’t just recover but emerges stronger and more diverse in its offerings.

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