Tuesday 2 February 2010

The impact of tourist visas on the Mexican inbound market to Canada and marketing to emerging markets.

On this morning's edition of the Globe and Mail, respected columnist and opinion leader, Jeffrey Simpson writes: "It's no wonder Mexicans feel aggrieved. How long does it take to get a visa? One part of the Canadian government website in Mexico recommends applying 30 days in advance; another part suggests six weeks." SIX WEEKS! Do we think that Canada is such a compelling must-see destination that we expect travelers to set aside 4 to 6 weeks just to get a visitor's visa? And that's just the time. I have stories from Mexican friends, relatives and clients about the visa application process that read like a surreal, magic-realism tale. But they're not funny to the operators or the travelers who should have received visas, but didn't (hiring a Canadian immigration lawyer to argue on behalf of the traveler or tour operator, is not worth the cost to any of the parties in these cases, so a visa rejection stands and there's no recourse to fight it).

Simpson: "Want a tourist visa? Here's a sampling of what's required over and above the usual passport and photo: a signed letter from your employer granting a leave of absence and specifying your salary (In French or English only, as Spanish will not be accepted!); original bank documents showing your financial history over the past six months; recent pay slips (a business owner must submit proof of the past three years' income tax statements); evidence of assets in Mexico; evidence of precious travel (previous passports)." These requirements appear to be a legacy of permanent residency applications (I would know because I came to Canada as a legal resident and went through all the paperwork). A tourist should not have to go through all these hoops to visit a destination. Americans, who have been issuing visitors visas to Mexicans for decades have a very efficient system to do so (in Spanish). Why not emulate them? Why not accept American Visas as proof of tourist worthiness?

The economic impact of Canada's visa imposition on Mexican tourism to Canada has been devastating for those Canadian (and Mexican) businesses that serve the inbound Mexican tourism market. Mr. Simpson goes over some calculations to get an idea of the impact in dollars. However, longer term, the numbers are harder to calculate, but are certainly up there. ("And how does one measure the drubbing that Canada's reputation has taken in Mexico, especially when senior Mexican officials, including judges, have been refused visas!")

Mr. Simpson quotes Prime Minister Harper referring to the issue of the visa at the top of his article: "This is not the fault of the Mexican government...This is a problem with Canadian refugee law, which encourages bogus claims." If this is so, then logic would dictate that it is the Canadian Government's fault that many Canadian tourism businesses, including mine, are suffering badly because of this decision. The prorogation of Parliament doesn't help, but I am not holding my breath in regards to refugee system reform. Being a sovereign country, Canada could determine what nationals can apply for refugee status and what nationals could not (a similar model to the British system) thereby blocking Mexican refugee claims and allowing the hundreds of thousands of law abiding Mexican travelers that wish to vacation in Canada (or used to want to anyhow) to come here as before. But I am not naive (rhetoric notwithstanding, Mexico is not really that important to Canada). Refugee System reform will not happen anytime soon, if at all, so, in my case, I am looking at other sources of income or another area of endeavour (not sure Canada's Economic Action Plan covers my case).

The way things are going I wouldn't be surprised if the Canadian Tourism Commission downsized in Mexico or closed down its office altogether in a year or two.

One thing to keep in mind as Canada markets our country as a tourism destination in emerging markets (developing countries) is that all these potential visitors in India, Brazil, China, will require visitors visas to enter the country. How many visas can the Canadian Government process in each of these countries in any given year? The answer to that question gives you the maximum number of tourists per year you could expect from any of those markets.

Mr. Simpson's article in the Globe and Mail: While Mexicans fume, our reputation and revenues take a hit

Jaime Horwitz Rodriguez MBA