Canada-China Inbound Tour Operator Registration Program Change Notice

Background

The Canada-China Inbound Tour Operator Accreditation Program was implemented in May, 2010 to fulfill the requirement of the MOU signed by DFAIT and the China National Tourism Administration (CNTA).

As part of the MOU, the Chinese government requested for Canada to present a list of qualified Canadian Inbound Tour Operators. In order to ensure the ADS MOU signing in 2010 was seamless and successful, the Tourism Industry Association of Canada (TIAC) was quick to ensure that a steady stream of reputable operators was brought on-line for the purposes of accreditation.

The timing of this initiative was sensitive as there were high expectations to have dozens of accredited operators in place for the signing of the agreement. In fact, before the details of the agreement were fully understood.

In advance of the signing, and with the help of many Canadian tourism industry players, TIAC had done its due diligence to examine international regimes and best practices relating the certification of ADS compliant inbound tour operators (ITO) and in developing a set of qualifying criteria for Canadian ITOs.

It is important to note that there has been significant experience in other jurisdictions with unsafe conditions, client abuse and suspect business behaviour. This has lead to injury and deaths in some instances, which in turn reflect poorly on the host destination. Our intention was to set the bar higher to avoid those conditions and create the notion that Canada is a safe and welcoming destination.

As of today, there are 38 accredited inbound tour operators (ITO): 12 in Ontario, 5 in Quebec, 3 in Alberta and 18 in British Columbia.

According to the MOU, both governments should ensure that the CNTA-designated travel agencies and the Canadian incorporated tour operators select their business partners from each other’s lists and conclude business contracts with them.

Having this program in place has helped Canada to fulfill its commitment to Chinese ADS market by setting a high service standard on the frontline of the industry and strengthening Canada’s image as a safe and welcoming place for the Chinese visitors.

As a private industry association, TIAC volunteers to set up and manage the program and receives neither financial support for carrying out this responsibility nor the indemnifications from the government. The initial plan had a fee structure set at $5, 000 for the first year and the subsequent-year renewal fees set at $3,500.

Consultation

Working towards the first anniversary of the program, since October 2010, TIAC has conducted extensive interviews with the accredited ITOs, industry stakeholders and relevant government departments, as well as extensive research of the best practices in the world, to evaluate the effectiveness, appropriateness and efficiency of the program.

TIAC met with Industry Canada and the Department of Foreign Affairs and International Trade to discuss its concerns. Both departments confirmed that neither the signed MOU nor the Canadian government requires TIAC to set up a robust accreditation system. Both departments also confirmed that the government had no interest in taking over the program but offered their support to the industry and expressed willingness to work with the next proposal given by TIAC. The government made it clear that a list of qualified tour operators required by the MOU must be maintained and appreciated TIAC’s effort in maintaining the List.

With the assistance from Canadian Inbound Tourism Association Asian Pacific (CITAP), the Canada China Tourism Association, and the Ontario Inbound Tour Operator Association, TIAC held 5 consultation meetings in Montreal, Toronto, Vancouver and meet with over 40 tour operators ( both on TIAC’s list and not on TIAC’s list). About 10 written comments from the tour operators were also received.

While tour operators welcome a robust management system, they remain concerned about the value of joining the system, the administrative process, criteria and the effectiveness of compliance enforcement.

Revised Plan

As a national tourism association, TIAC’s mandate is to present tourism interests at the national level, and its advocacy work involves promoting and supporting policies, programs and activities that will benefit the sector’s growth and development. Given that the China ADS market is an important market segment of the industry, TIAC is committed to continue working with stakeholders to address the challenges remained.

Therefore, after carefully studying the comments provided by the stakeholders and examining the capacity and resources of the organization, TIAC is making the following revisions to the Canada-China Inbound Tour Operators Accreditation Program:

  1. Program Name Change:
     

    TIAC is an industry association that encourages best practices and value added services. Based on its mandate, TIAC has decided to change the current Canada-China Inbound Tour Operator Accreditation Program to Canada-China Inbound Tour Operator Registration Program. This registration program is membership based and aiming at fulfilling the requirement in the MOU signed by DFAIT and the CNTA. It calls for voluntary enrolment and commitment to provide quality service to the Chinese tourists while maintain integrity, competition and fair market spirit in the industry.

    TIAC will use all its venues to promote the registered Tour Operators tirelessly and continue working with the CNTA, the Canadian government and tour operators to monitor the development of this market segment.

  2. Fee Structure
     

    In the first year, ADS applicants will be subject to a detailed assessment by TIAC. In subsequent two years, the renewal process will be condensed and simplified.

    The first year’s registration fee will be $3000 plus applicable taxes. The annual renewal fee will be $1200 plus applicable taxes. The initial and annual registration fee will include a TIAC associate membership status.

    For tour operators who are on the accreditation list, the fees they have paid include two more years’ registration fees (from the day of their first anniversary in the accreditation program). However, if one wish to withdraw or one is removed from list for whatever reasons, no refund will be granted.

  3. Administration
     
  4. The former Canada-China Inbound Tour Operator Accreditation Office will be closed. The
    registration process will be managed by TIAC directly.

  5. Criteria
     

    The criteria and requirement of the registration will be similar to the ones in the accreditation
    program. However, while achievement of main purposes (i.e. to increase tour quality, increase
    value of ADS tours) will not be compromised, the registration process will be streamlined to
    ensure efficiency and remove administrative burdens on tour operators.

    Please see detailed criteria in the Canada-China Inbound Tour Operator Registration Program
    introduction.

  6. Compliance
     

    The compliance will be based on “event driven”. If evidence or report from the market suggests
    that a review is needed, TIAC will do its investigation. If a registrant is removed from the list due
    to incompliance of the Code of Conduct, TIAC will announce the removal on its website and
    inform the CNTA.

  7. Time Line of the registration system implementation
     

    Implementation: Effective as of September 1, 2011

For additional information, please contact:

Grace Xin, National Director
China-Canada Inbound Tour Operator Registration Program
c/o Tourism Industry Association of Canada
116 Lisgar Street, Suite 600
Ottawa, Ontario, K2P 0C2
Tel: 613-288-5747
Fax: 613-238-3878
Email: gxin@tiac.travel