Innovative thinker, Derek Galpin brands his country without ADS assistance
China Traveller
April 2009
A vast land full of natural beauty and rich tourism resources, Canada has long enjoyed positive brand awareness among global travellers. Derek Galpin, Regional Director, China & Japan, of the Canadian Tourism Commission is responsible for driving this awareness in China. A difficult task as Canada is one of few locations without approved destinations status (ADS). During a recent interview we had the opportunity to learn about brand Canada and it’s standing in the China outbound tourism market.
Q: How would you define China’s current outbound travel industry?
A: Despite the current global economic climate, we have yet to see any indication of a major drop in outbound travel demand. In the case of Canada, the number of visa applications, flight load factors and travel agent bookings all point to a steady level of interest from Chinese travellers.
Q: How would you define brand Canada?
A: Two years ago, Canada was branded as a vast land of mountains, mounties and moose. Although we still have an abundance of these iconic wonders, we are now presenting a different side of Canada, a side that includes fine dining, spa’s, golf and other fun activities. We have effectively rebranded Canada by creating increased awareness of the country which offers high emotional appeal and where travellers can experience a wide range of activities and experiences throughout the year.
Q: How is brand Canada perceived in the China market and who does it target?
A: Despite a lack of ADS, brand Canada enjoys a high level of awareness in China. Our brand attributes are clear in this market.
Q: What is the rough breakdown of Chinese arrivals to Canada?
A: The past year experienced 290,000 arrivals through our two ports of entry connecting Canada to China, Vancouver and Toronto. This figure is broken-down to 160,000 travellers from mainland China and 130,000 from Hong Kong.
Q: What countries compete with brand Canada?
A: All long-haul destinations compete with Canada, including Australia, the European Union and the United States – all of these competitors have ADS.
Q: What are the major obstacles Canada has encountered during its quest to positively brand itself in China?
A: Our lack of ADS is assuredly our biggest obstacle. Without ADS, we are unable to directly market our brand to potential travellers nor can Chinese travel agencies promote Canada as a leisure destination. Once ADS is granted, I foresee a 30-35% jump in outbound travel from China to Canada over a one year period.
Q: What successes has brand Canada gained in the China market and what drove them?
A: A lack of ADS has forced us to be very creative. With this forced creativity, we’ve rolled out some very innovative and successful initiatives in China. One example is our ‘Perfect Family’ program, where we invited our ice skating celebrities Shen Xue and Zhao Hongbo to travel to British Columbia, Alberta and Ontario. Our celebrity family was accompanied by specific media which subsequently generated a lot of positive coverage with a total ad value of eight million Canadian Dollars. This program is part of our overall goal of greatly boosting media momentum, especially during the run-up to the 2010 Winter Games in Vancouver. It also highlights Canada’s unique appeal as a family destination with an abundance of activities and experiences for all.
Q: What measures are you taking to combat the effects of a slowing global economy and declining travel market?
A: The current global economic downturn has not directly impacted our activities in China. The one area we are feeling macroeconomic forces is our budget. Since we are funded in Canadian Dollars, the RMB’s rising value reduces our buying power. By the same token, the strength of the RMB makes Canada a very affordable destination for Chinese travellers.
Q: What tactics does the CTC employ to generate better awareness of Canada in China?
A: Without ADS, we find ourselves operating with our hands tied behind our backs. The only outlets available to us are FAM trips and trade and consumer fairs. We are also tapping into some online activities. Still, even these limited initiatives have been beneficial in building positive awareness of Canada in China.
Q: Are there any new branding strategies you would highlight as becoming more popular over time?
A: From an industry perspective, business, consumer and social media are becoming the best branding tools for destinations. Though this also applies to China, it is important to note that this market is very unique. The CTC operates all over the world – Japan, Germany, Australia and elsewhere – but all of these places have well established travel markets. China is still developing. For Canada, this development without ADS means a market with a growing number of incentive travel groups and high-end consumer FIT traffic, particularly family travel.
