China snubs Canada on its list of approved travel spots, setting back tourism's post-COVID recovery

In an apparent snub, the Chinese government has left Canada off a list of countries approved as international travel destinations for tour groups a decision that threatens to leave Canada's travel industry at a competitive disadvantage as it continues its post-pandemic recovery.

In a media statement, the Chinese foreign ministry announced on Aug.10 that an additional 78 countries had been added to alist of destinationsapproved for group tours and package travel. Travel agents from mainland China work from this list when they promote and book foreign travelfor Chinese nationals.

In response to an inquiry from CBC News about China's rationale for excluding Canada, the public affairs office atChina'sembassy in Ottawa wrote that "lately, the Canadian side has repeatedly hyped up the so-called 'Chinese interference'and rampant and discriminatory anti-Asian acts and words are rising significantly in Canada."

"The Chinese government attaches great importance to protecting the safety and legitimate rights of overseas Chinese citizens and wishes they can travel in a safe and friendly environment," the embassy added.

In a joint statement sent to CBC News,spokespeople for Canada's foreign affairs and tourism ministers saidCanadian tourism since the end of the pandemic has been strong and the governmentis aware ofCanada's continued omissionfrom China's list of approved destinations, as well as the Chinese embassy's recent public statements.

WATCH | Canada stands to lose millions in lost tourism revenue from China:

China retaliates against interference claims by snubbing Canada for group travel

1 year ago

Duration 2:18

Canadian tour companies fear losing millions in Chinese tourist dollars after Beijing deliberately cut Canada from a list of approved travel destinations for international tour groups. Beijing says Canada has repeatedly hyped up the so-called 'Chinese interference' and rampant and discriminatory anti-Asian acts and words are rising significantly in Canada."

Prior to the outbreak of COVID-19 in 2020, outbound tourism from China was a valuable international commodity. Statistics from the World Tourism Organization suggest Chinese travellers spent $255 billion in 2019, accounting for 20 per cent of all international tourism spending.

Before international travel largely shut down due to the pandemic, roughly 60 per cent of mainland Chinese tourists'spendingabroad went togroup tours.

Chinese citizens have yet to resumetheir pre-COVIDtravel patterns. It remains to be seen if Thursday's announcement will be perceived as a green light for more Chinese nationals to pack their suitcases again.

Destination Canada, the Crown corporation set up to promote tourism, told CBC News that in 2019, China was Canada's largest source of tourist arrivals from the Asia-Pacific region and Canada's second-largest long-haul market after the U.K. China also used to beCanada'slargest market in terms of how muchits tourists spend.

"While visitation and [spending] from China have dropped significantly since 2020,China remains an important market for Canada. We look forward to welcoming Chinese visitors back when restrictions allow," said spokesperson Jennifer Petersin a statement.

Canada approved as a destination in 2010

The list from which Canada isnow noticeably absent is one it had to fight to join in the first place.

In 2005, then-Liberal industry minister David Emerson thought he had secured Beijing's "approved destination status" (ADS)for Canada. But then the federal government changed hands andConservative Prime MinisterStephen Harpervowed not to sacrifice human rights for the "almighty dollar."

Amid diplomatic tensions, approvals for Chinese tour groupstook years to finalize. The ADS list is a way for Beijing to influence the travel and spending power of its millions of citizens overseas, andscholars have analyzed how the Chinese Communist Party (CCP) hasused it to advance its political agenda.

Emerson, who crossed the floorto serve in Harper's cabinet as trade minister, continued to push China and even threatened to take Canada'scase to the World Trade Organization, arguing Canada had been put at an economic disadvantage for purely political reasons.

Harper finally secured ADS during a visit to Beijing late in 2009.

Approved group tours began in 2010, leading to a significantexpansion of air travel between the two countries and a boostfor tourist destinations popular with Chinese visitors.

At the time, Beijing's inclusion of Canada on its list was estimated to be worth a potential $100 million annually for the travel sector, owing to a predicted influx of 50,000 tourists each year on these approved visits.

Chinese tourists, on average, stayed in Canadalonger and therefore had the opportunity to spendmore than visitors from other countries. Government officials at every level rushed to market Canada as eager for their business.

Then came the detention of Huawei executiveMeng Wanzhou at Vancouver's airport in 2018, the arrest of two Canadian citizens in retaliation, and the resulting deep freeze in Canada's bilateral relations with China.

The COVID-19 pandemic then turned off the taps almost completely, as Beijing stopped approving international group travel for its citizens.

Touristsas diplomatic weapons?

Thursday's reinstatement of endorsedgroup travel to dozens of international destinations senta signal that Beijing now approves of its citizens spending money abroad again. Even the U.S., which continues to have a strained diplomaticrelationship with China, was included on last week'slist, as were other Western allies likeGermany and the United Kingdom.

China's first batch of sanctioned travel approvals in January included 20 countries such as Thailand, Russia, Cuba and Argentina. The second batch approved for post-pandemic visitsin March included 40 countries, notably Nepal, France, Portugal and Brazil.

In total, 138 countries have now received this green light from Beijing but not Canada.

Niagara Falls used to be one of the top attractions for Chinese tour groups. The president and CEO of Niagara Falls Tourism told CBC News she holdsout hope that Chinese officials may yet add more countries.

"While the omission of Canada from this round of post-pandemic approved destinations is disappointing, Niagara Falls Tourism is optimistic that in the next phase of this staggered approach, that Canada again will be able to share the wonder of Niagara Falls with the Chinese group and tours market," Janice Thomson's office wrote.

The office of Canada'snew tourism minister, Soraya Martinez Ferrada,told CBC News on background thatCanada continues to request the reinstatement of approved destination status.

International media coverage of Beijing's announcement last week noted Canada's absence and itsstrained relations with China.

Foreign Affairs Minister Mlanie Jolydeclared a Chinese diplomat from its consulate in Toronto persona non grataearlier this year amid allegations offoreign interference and suspected election meddling.

Prime Minister Justin Trudeau's Liberal government remains under pressure from opposition parties to take tough diplomatic stands against Beijing in responseto allegations offoreign interference, harassment of members of the Chinese diasporaresiding in Canada, the CCP's targeting of minority groups like Uyghursand a number of documented human rights abuses, including the exploitation of forced labour byChinese authorities.

In the past,when it has soughtto send a political message and put pressure on Ottawa, Beijing has not hesitated to use the economic power of its millions of consumers to harm Canadian business interests.

The CCP's so-called "commodity diplomacy" has targeted Canadian agricultural exportslike canola and beef, risking billions in lost exports as these sectors scrambled to find alternative markets.

Small tourism businesseshave been arguing the federal government needs to give them more time to pay back the special loans extended to keep them afloat during the pandemic. They arguetheir economic recovery is not yet complete, despite an encouraging summer season in some places.