Canada Excluded from China's New Group Travel Policies: What's at Stake?

The opinions expressed by authors in these commentaries do not necessarily represent the views of the China Institute or the University of Alberta.

Amidst an atmosphere of cautious optimism, the global tourism industry recently welcomed China’s move to lift pandemic-era restrictions on group travel. As major markets like the United States, Japan, South Korea, and Australia benefit from the newfound influx of Chinese tourists, Canada's notable absence from the list underscores the more profound issues at play in the geopolitical arena.

China's outbound tourists have, in the pre-pandemic era, become a cornerstone for global tourism. In 2019, mainland Chinese tourists spent over C$340 billion abroad, with group tours representing approximately 60% of that figure. The absence of these tourists, exacerbated by the pandemic, has put a significant strain on tourism-dependent businesses worldwide. The recent announcement by China's culture and tourism ministry is anticipated to provide a substantial boost. Reports of a two-month wait for visa applications for hotspots such as the US, Britain, and Germany underscore this resurgence. Yet, the current volume of outbound tourism from China is at just 40% of pre-Covid levels, indicating a potential for significant growth.

While this is a positive sign for many countries, Canada's exclusion is particularly glaring. Historically, Canada has enjoyed a vibrant exchange of tourists with China. However, recent politically charged tensions have cast a pall over the bilateral relationship. This exclusion isn't just about missed sightseeing opportunities; it translates to a considerable economic blow. Considering the spending habits of Chinese tourists, who spend nearly twice as much as their Japanese counterparts and a third more than their US peers, Canada's tourism sector stands to lose significantly.

China’s selective approach, releasing approvals in batches, has led many to believe that the process is reflective of China’s favorability towards restricted or unrestricted countries. The fact that Canada hasn't made the cut yet can be perceived as a tangible demonstration of the frosty relations between the two nations.

In the global arena, this move sheds light on how tourism, a seemingly innocuous sector, becomes entangled in the larger web of geopolitics. The feedback from major global players, including the positive responses from the US and Australia, juxtaposed with Canada's conspicuous absence, paints a vivid picture of how diplomatic ties can directly impact economic outcomes.

For Canada, this situation poses a double-edged sword. On one hand, missing out on the lucrative Chinese tourism market will undoubtedly strain an industry already grappling with pandemic-induced challenges. On the other, some might argue that this could provide an opportunity for Canada to diversify its tourism base and reduce dependence on a single market, thereby insulating itself from such geopolitical maneuvers in the future. However, the former reason relates to near term gain while the later only speculates about long term consequences.

Moving Forward

As countries navigate the intertwined paths of diplomacy and economics, the omission of Canada from China's group travel list serves as a poignant reminder of the tangible implications of international relations. For Canada, it's a call to recalibrate its strategies, not just in tourism but in broader trade and diplomatic engagements with the world's second-largest economy. For starters, the group travel ban to Canada may be lifted in concert with Steven Guilbeault’s, Canada’s environment minister, pro-cooperation visit to China this month.

With tourism acting as a conduit for not just financial gains but also cultural diplomacy, the path ahead warrants careful navigation. In an intricate global tapestry, Canada and China, with their entangled pasts and potential futures, may find merit in seeking common ground, ensuring that economic exchanges, such as tourism, don't become casualties in the larger geopolitical landscape.