Business Capstone Project – Canadian Travel Industry

Business Capstone Project –
Canadian Travel Industry
Student’s Name:
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Table of Contents
Introduction................................................................................................................ 2
Legal/Governmental/Regulatory constraints and issues.............................................2
Role played by the issues in Canadian travel industry...............................................3
Conclusion.................................................................................................................. 4
References................................................................................................................. 5

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Introduction
The travel industry is considered as the dominant industry in Canada as it assists in the
commercial development of the country. The industry is beneficial to increase the GDP rate of
the country and also generate around 738,000 jobs throughout Canada. The travel industry is
recognized as a substantial as well as a reliable source of employment for the people of Canada.
Moreover, over 5.2% of the total business formed in the travel industry in Canada. It is found
that travel accounts for over 2% of the GDP of the country. The fundamental objective of the
report is to address the legal or regulatory issues along with constraints within the Canadian
travel industry in order to evaluate the position of the industry in the competitive environment.
Besides this, the major role played by all the issues within the industry will also be discussed.
Different legal or regulatory issues impact the travel industry positively as well as negatively and
thus, the report aims to determine the impact of the issues on the industry in the province.
Legal/Governmental/Regulatory constraints and issues
In the province of Ontario, regulations are restricted for travel agents because every individual
working at the travel agency in Ontario need to pass TICO (Travel industry council of Ontario)
exam. It is one of the regulatory and legal issues for the travel agent to work in the travel agency
as unless the agency is registered as TICO agency; it will not be considered legal (Fulfer, 2017).
Moreover, inbound travel to the country is consistently growing each year, but still, the country
falls behind from other nations in terms of annual growth. It is so because of the presence of a
barrier to entry which influences the competitiveness ability of the country on the globe. Another
issue is that the government has not taken any actions for making the products of the travel
industry more competitive globally, which makes the nation less attractive destination for travel
and traditional tour packages (Cho, Bonn & Brymer, 2017). The government of Canada charge
tax on foreign visitors for purchasing tourism products to add to the cost of travel.
Furthermore, the information used from various sources related to the travel industry of Canada
such as statistics, facts and Canadian regulations for travel agency. The federal government has
imposed heavy travel restrictions on the travel of Canadians to travel to Hubei province of China
in order to prevent the spread of novel coronavirus. Implementation of heavy restrictions on
travel has become the key issue for the travel industry and affect many cities across the province
(McKamey, 2017). Besides this, cost of compliance is too high for the travel industry to comply