Canada travel searches spike in China as group tours resume: ‘interest surged’
News Summary
Beijing's decision to lift the ban on group tours to Canada, in place since the Covid-19 pandemic, has led to a surge in interest among Chinese consumers, with Chinese travel platforms reporting a significant jump in related searches. The move was announced just days after Chinese President Xi Jinping met Canadian Prime Minister Mark Carney in South Korea and called for relations between the two countries to get “back onto the right track.” Following the news, searches for flights to Montreal, Ottawa, and Toronto on Qunar, a platform under Trip.com Group, jumped by 223%, 137%, and 61% respectively. Another platform, Fliggy, reported a “nearly twofold surge” in searches for Canadian flights within an hour of the announcement compared to the previous day. According to Singapore-based travel marketing firm China Trading Desk, bookings by Chinese travelers bound for Canada were up 6% week on week by Tuesday.
Background
Since the onset of the Covid-19 pandemic, China had maintained a ban on group tours to several countries, including Canada, significantly impacting bilateral travel and tourism. This ban was one facet of broader strained relations between China and Canada, which have faced challenges since the 2018 Meng Wanzhou incident. In November 2025, Chinese President Xi Jinping met with Canadian Prime Minister Mark Carney in South Korea. This meeting was seen as a crucial signal for de-escalation and normalization of bilateral ties, especially after Xi explicitly called for relations to get “back onto the right track.” Canada was a significant destination for Chinese tourists, attracting over 708,000 visitors in 2019, but the pandemic and diplomatic tensions led to a substantial decline in these numbers.
In-Depth AI Insights
What are the true motivations behind China's decision to lift the group tour ban on Canada? - While ostensibly about normalizing people-to-people exchanges and boosting economic activity, the deeper motivations are rooted in diplomatic strategy and geopolitical calculations. - The swift lifting of the ban, immediately following President Xi's meeting with PM Carney and the emphasis on “getting relations back on track,” suggests Beijing is leveraging economic tools (tourism) as a diplomatic instrument to test and encourage Canadian cooperation or at least neutrality on key issues in the future. - This move could be part of China's broader strategy to selectively mend ties with certain economic partners amidst complex international dynamics, potentially aiming to prevent a unified Western front and gradually restore its global economic influence. What are the implications for Canada's economy and related industries, and what risks and opportunities should investors consider? - Opportunities: Canada's tourism sector (airlines, hotels, travel agencies, retail) stands to directly benefit from the return of Chinese tourists, especially given that numbers reached over 708,000 in 2019. This will boost consumption, employment, and foreign exchange earnings. - Risks: Over-reliance on the Chinese tourism market could introduce geopolitical risk. Should bilateral relations sour again, travel bans could reappear, causing volatility for affected industries. Canadian businesses should also be wary of potential cybersecurity risks and intellectual property theft, particularly with increased Chinese visitor numbers. - Investors should monitor the potential for improved performance in Canadian airlines, hotel chains, and luxury retailers, while also assessing their exposure to single-market risk. What are the long-term impacts of this event on future trade and investment relations between China and Canada? - The lifting of the travel ban is a positive signal for thawing relations and could pave the way for broader economic cooperation, such as investment negotiations in sectors like energy, agriculture, or high-tech. This helps to restore damaged business confidence. - However, this “thaw” may be limited and fragile. Against the backdrop of a tough US policy towards China under President Trump, Canada still faces pressure from its key ally regarding its approach to Beijing. Whether China-Canada relations achieve a substantial breakthrough will depend on the broader geopolitical landscape and both countries' stances on sensitive issues like human rights and technological security. - Investors should exercise caution regarding short-term optimism and focus on concrete policy developments from both governments concerning trade agreements, investment screening, and supply chain diversification.