Niagara Falls, the CN Tower, and even the world’s largest coffee pot aren’t enough to lure Chinese tourists back to Canada.
Driving the news: Last year, only 225,100 Chinese visitors came to Canada, down from ~750,000 tourists seen before the pandemic, according to recent StatCan data. The loss in the big-spending Chinese market is a blow for Canada's still-recovering tourism industry.
Why it’s happening: After being accused of interfering with Canadian elections, China removed Canada from its list of approved destinations for group tours — a sector that made up 60% of spending by mainland Chinese tourists abroad pre-pandemic.
- Canadian airlines also can’t fly through Russian airspace right now, making flying more difficult, expensive, and infrequent. (Chinese airlines are allowed to fly over Russia.)
Why it matters: Chinese travellers spent nearly $2 billion a year in Canada before the pandemic, making them the second-highest-spending tourist group after Americans. The drop in Chinese visitors has coincided with Canada’s tourism industry contributing less to the overall economy.
- Today, Canada’s tourism sector accounts for 1.7% of GDP, down from 2% pre-pandemic.
Zoom out: Chinese citizens' spending on overall international travel has declined 52% since 2019, and with a slowing economy that’s increasingly pinching wallets and halting vacation plans, it could be a while until Chinese travellers start spending big abroad again.—LA
