A decision by China to bestow approved destination status on Canada will open the gates for tourists from that country, pumping millions of dollars into Canada's tourism industry, experts say. 

It's a designation that makes it easier for Chinese nationals to visit Canada on tourist visas, not just as students, or for business reasons, as well as allow Canada to advertise as a tourist destination in China and authorize Chinese travel agencies to market and promote leisure group tours for travel in Canada.  Canada is the 135th country to receive it – one year after the USA. 

The Canadian Prime Minister Stephen Harper made the announcement in Beijing following his meeting with Wen Jiabao, Premier of China in a joint communiqué, issued by Chinese and Canadian officials on Thursday, during his first trip to China.

"Approved destination status marks a significant moment in the history of our relations with China, indicating not only our mutual commitment to strengthening our diplomatic and commercial partnerships, but also our people-to-people ties," said Harper in statement released by his office on Thursday.

"Approved Destination Status marks a significant moment in the history of our relations with China, indicating not only our mutual commitment to strengthening our diplomatic and commercial partnerships, but also our people-to-people ties," said Prime Minister Harper.  "As Canada prepares to welcome the world to Vancouver for the 2010 Olympic and Paralympic Games, this new designation will help more of our Chinese friends discover why Canada is one of the best places in the world in which to invest, innovate, work and compete."

Approved Destination Status allows Chinese travel agents to advertise and organize group tours to countries with the designation.  This means that obtaining permission to arrange group travel to that country becomes easier.  As a result, this should encourage more people from China to travel to Canada, which will have a positive impact on the Canadian economy.

In 2008, visits to Canada by Chinese citizens were up 5.3 per cent from the year before, for a total of 159,000.  Chinese travellers had the highest average length of stay (28 nights) in Canada and spent more than visitors from any other country ($1,648.51).  According to a Conference Board of Canada survey, approved destination status is expected to boost the yearly rate of travel to Canada from China by up to 50 per cent by 2015.

By 2020, China is expected to be the world's largest outbound market, producing some 100 million outbound tourists. With an emerging middle class that is increasingly looking to spend its disposable income on travel and tourism, there is a tremendous opportunity for Canada to attract a significant flow of visitors across the Pacific.

"TIAC sincerely appreciates the good work done by the government and the relevant departments to finalize this important agreement for our sector's competitiveness," said Randy Williams, CEO of the Tourism Association of Canada (TIAC). "In particular, we would like to acknowledge the Prime Minister, the Minister of State for Tourism, Diane Ablonczy, and the Minister of International Trade Stockwell Day, for their determination in moving this file forward at a critical juncture in the development of Canada's tourism industry."

Chilly relations thawing

On Thursday in Beijing, Chinese Premier Wen Jiabao reminded Harper that a Canadian prime minister had not visited in five years — a duration he called "too long."

Chinese newspapers have also adopted a mixed tone toward Harper's visit, with one touting Harper's arrival as a sign that ties between the two countries may "thaw," while another article described Harper's visit as "late" but "still welcome."

Meanwhile, the Chinese Foreign Ministry has called on Canada to deport accused smuggler and billionaire Lai Changxing, who has taken refuge in Vancouver for the last nine years after fleeing China.

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