October 2006
Canada 411
Insiders’ guide to producing shows in Canada

By Linda C. Chandler



Indianapolis-based Kiwanis International (www.kiwanis.org) was slated to take its 91st annual convention to Rome in 2006 but, before making the commitment, the organization realized the value of the U.S. dollar against the Euro might limit its buying power. “We started looking at other destinations, and both Toronto and Montreal presented appealing plans to host our annual convention,” says Kelly Sears, Director of Meetings and Conventions, whose annual event generally rotates across North America and off continent about every five years.

“We decided to go with Montreal because it’s the most European-style city in North America. A lot of people hesitate, thinking French-speaking Quebec may not be welcoming. But that’s absolutely not true. Our U.S. attendees experienced the attraction of a European destination without having to cross the ocean, attendance was on par with shows held in U.S. cities; and there were no safety issues or dissatisfied attendees.” The 2006 convention attracted 40 exhibitors and 6,000 attendees (85 percent were U.S.-based attendees, 15 percent were international).

If you haven’t produced a show in Canada, it’s probably time to give it some serious consideration, especially if your show rotates and attracts an international audience. The reluctance of most U.S. event organizers to take a trade show to Canada is often fueled by fallacy. Myths about this U.S. neighbor to the north run the gamut, but the truth often lies somewhere in the middle. Canada offers the appeal of an international destination, with the comfort factor of being close to home, little or no language barriers and convention centers that offer all the amenities of U.S. facilities.

To help you evaluate whether this country might be right for your show, EXPO examines the myths vs. the realities of producing trade shows in Canada.

Myth #1: It costs more now to take a U.S. trade show to Canada because of the current exchange rate, and taxes are high.

Reality: True, the exchange rate does not favor the U.S. planner as much as it did a few years ago when the Canadian dollar was around 70 percent of the U.S. dollar. But the current 88 to 90 cents on the dollar can still be a positive when compared with pricing in similar U.S. destinations. It’s certainly a risk that should be taken into consideration because the dollar is always subject to fluctuation — either in your favor or not — from the time you book until the time of your show.

“The cost was higher than expected due to the decline of the U.S. dollar between the time of booking/contract negotiations and the actual convention,” says Sears. “However, pricing in Montreal remains competitive with comparable U.S. cities.”

Most show organizers find pricing of space, services, lodging and food and beverage in the major Canadian venues — Montreal, Toronto and Vancouver — better than U.S. destinations in the Northeast and comparable to cities like Atlanta or Houston.

“The typical cost of exhibiting is less in Canada,” says Bob Macgregor, Managing Director of Diversified Business Communications (www.divcom.com), Markham, Ontario. “Our union policies are generally less restrictive, and drayage costs are minimal. Drayage in Canada is done by time and material, not hundred-weight. Exhibitors pay a half hour to an hour minimum (less than $100).”

Macgregor’s opinion is challenged by Sears, who thought union labor for the Kiwanis International Convention “was exceptionally expensive due to both the number of different unions and their various contract requirements.” But Sears says that recovering the tax rebates from her event should help balance the costs.

The paperwork that it takes to secure the Goods and Services Tax (GST) rebates has been simplified. Many hotels and even convention venues are trying to make things easier.

Cathy Nash, CMP, Director of the Meetings and Conventions department of the American Psychiatric Association (www.apa.org), Arlington, VA, has been taking annual meetings to Canada since 1982. “The way it works now, the hotels and convention center will apply on your behalf,” Nash says. “You send them a one-page letter with the details of your meeting, and they will not bill the GST (or it’s billed but subtracted from the master bill). I still had to file with a dozen or so individual vendors, but it’s not as cumbersome as it used to be to get your rebates.”

Danielle Andre, Exhibition Manager and Meeting Planner for the Montreal-based World Federation of Hemophilia (WFH, www.wfh.org), thinks Canadian cities stack up well against destinations in Europe and Asia where the WFH World Congress has been held. Of her event in Vancouver last May, she says, “Labor costs were competitive. Labor unions were not an issue for us. We were pleasantly surprised that some add-ons were provided free of charge, as our suppliers really had the interest of the success of the meeting in mind.”

“The Vancouver Convention and Exhibition Centre (www.vcec.ca) is a nonunion operation, with most of our primary services provided by contracted official suppliers,” says Carly Thorson, Communications Manager. “This ensures we’re both cost-competitive and extremely stable in terms of service delivery.”

“Typically, there are fewer labor issues in the West,” adds Peter Faloon, Vice President, Business Media, North America for dmg World Media (www.dmgworldmedia.com), and producer of the Global Petroleum Show (www.petroleumshow.com) in Calgary, Alberta. “There’s more unionization in the East, but it’s still day and night compared with union issues in the States.”

Myth #2: Customs is too much of a hassle. Our show’s materials and our exhibitors’ booths might get lost or held up, and there’s just too much paperwork.

Reality: There are two secrets to hassle-free customs entry for events in Canada. First, contact the Canada Border Services Agency’s Convention Services Program (www.cbsa-asfc.gc.ca) to get official recognition for your event. Second, contract with an experienced, reputable customs broker.

Faloon says event organizers should choose one of the top three customs brokers in Canada and encourage exhibitors to use the event’s exclusive, official broker.

U.S.-based planners agree. “Thanks to [the broker] Mendelssohn,” says Sears, “exhibitors, speakers and vendors who followed the guidelines provided to them in advance had no problems.”

Of course, there’s some extra paperwork for everyone, admits Nash, “But we had no complaints from exhibitors at our annual meeting in Toronto last May, and no problems at all with our own shipments.”

Kim Schardin, Membership/Meetings Manager of The American Association of Medical Society Executives (www.aamse.org), took her members and a small group of exhibitors to Canada for the first time last spring. Of materials handling for her meeting in Montreal, she says, “Honestly, I had no idea that it would be as big a production as it was. I know about customs and prepared for it with a shipping broker, but then I needed to ship a lot earlier and had to fill out paperwork that we don’t have when shipping within the States.”

Nevertheless, Schardin says her exhibitors “were happy with the on-site service and the customs broker, especially when packages were addressed incorrectly but were still delivered in record time.”

Return shipping has its own set of issues. Like many planners, Schardin says, “Coming back, we decided it was easier to donate or dump things like extra bags. They weren’t worth the time or paperwork to bring them home.”

Myth #3: With tighter travel restrictions and new passport regulations, it’s just too much trouble to go across the border. Attendees might not come to the show because they don’t have a passport or they don’t understand the new requirements.

Reality: Border crossings between the United States and Canada remain relatively simple and hassle free, but there are exceptions. And because regulations are always subject to change, show organizers should be aware of new requirements. The best source of current information for U.S. travelers is the U.S. State Department (http://travel.state.gov).

“U.S. citizens may find it easier to enter Canada than to get back into the United States,” says Faloon. 

Homeland Security issues in the United States have spurred legislation requiring passports. There has been confusion in the past year about when tighter restrictions go into effect. Beginning Jan. 8, 2007, passports will be required for all air and sea travelers. Passport requirements will be extended to land border crossings on Jan. 1, 2008.

Schardin says, “Most of our attendees were very willing to cross the border, but the changing date for the U.S. requirement of a passport only added to the confusion about what documents were really needed. In the end, we sent three e-mail blasts reminding our attendees about the required documentation, and no one complained.”

Andre does caution that trade shows that draw worldwide attendance need to prepare visitors to complete the Canadian visa process, which is not required of U.S. citizens. “A few people for our 2006 meeting were unable to obtain a visa to enter Canada, either because they waited too late to start the application process or were subject to country-of-origin or other restrictions,” she says.

What some U.S. residents don’t realize is that current criminal offenses may cause denial of entry into Canada. For instance, if someone is on probation for a DUI conviction, entry may not be granted, but if the probationary period is over, a DUI conviction in the past may be irrelevant. Show organizers should refer U.S. and international attendees to the Canadian immigration Web site (www.cic.gc.ca) to ensure they’re eligible to enter Canada.

Myth #4: The convention infrastructure in Canada can’t support large shows. There aren’t enough hotel rooms or options for venues to host big events.

Reality: Andre believes Canadian cities stack up well against other international destinations where her meeting has been held. “The big misconception I see is that non-Canadians may think Canada is a bland place, a quaint and quiet place. If they do come to Canada, they’ll see that there are large and vibrant cities that have a lot to offer in terms of venues, accessibility and international know-how.”

“According to the 2005 statistics of the Union of International Associations (uia.org), Montreal ranks third behind only New York and Washington, DC, for international meetings in North America,” says Luc Charbonneau, Director of Business Sales for Tourisme Montreal (www.tourisme-montreal.org).

And Montreal certainly offers the infrastructure to host shows as large as 500,000 square feet at Olympic Stadium. In addition, the Montreal Convention Centre (Palais des congres de Montreal) is linked to 4,000 hotel rooms via weather-protected walkways. There are 100 daily flights to the United States and Europe, making access for attendees “easier than for many second-tier U.S. cities,” Charbonneau adds.

Airports in Toronto and Vancouver offer similar amenities and easy connections to U.S. hubs. Vancouver International Airport has seen three expansions in recent years, and the $4.4 billion expansion at Toronto’s Pearson Airport should be completed in 2008.

Schardin’s convention was held at Montreal’s Fairmont Queen Elizabeth. “We were very impressed,” says Schardin. “The convention floor and meeting rooms were designed well, and the entire hotel staff went above and beyond our expectations.

Nash used 33 hotels in Toronto to accommodate more than 18,000; her attendees like a variety of choices, regardless of where they meet. “Many hotels were in walking distance. We used the Metro Toronto Convention Centre and nearby Intercontinental and Royal York hotels for 500 sessions in six days. The convention center has terrific space for education and for our show, which had 883 booths,” she says.

“The Vancouver Convention and Exhibition Centre is more than adequate to hold large meetings,” says Andre. “Ours was just under 4,000, but there are meetings for 10,000 there, with repeat business, so they must be doing something right.”

In fact, the Vancouver facility has had to turn away events because of date and space limitations. “However, that’s all about to change,” Thorson says. “Construction is well under way on an expansion that will triple our size upon its opening in 2008, creating a well-balanced program of spaces to meet the demand.”

Thorson also notes that Vancouver has about 13,000 quality hotel rooms within a four-block radius of the convention center, with 1,000 rooms adjacent. Even more rooms will be added with a new hotel opening in conjunction with the center’s expansion.

“Even older facilities you might find in Canada compensate with exceptional customer service,” says Faloon. “American-based exhibitors tell us it’s ‘hassle-free’ working in Canada, but I believe it’s the style and personality of people on the loading docks that help give that impression.”
Sears agrees. The biggest advantage of convening across the border, she says, is the “professional, personable industry personnel.”

Linda C. Chandler is a freelance writer/editor based in Tyler, TX. She has written for association and convention publications for 18 years. Contact her at linda.chandler@earthlink.net.

More on expoweb.com
DOWNLOAD: Canadian convention centers, including exhibit and meeting space available, key features and complete contact information

Key Canadian tourism and convention organizations
Canada Tourism Commission www.meetings.canada.travel/ctc/mcit/homepage.jsp
Tourism Montreal www.tourisme-montreal.org
Palais des congrès de Montréal www.congresmtl.com
Toronto Tourism www.torontotourism.com
Metro Toronto Convention Centre www.mtccc.com
Tourism Vancouver www.tourismvancouver.com
Vancouver Convention and Exhibition Centre www.vcec.ca
Tourism Calgary www.tourismcalgary.com
Calgary Exhibition and Stampede www.stampedevenues.com
Destination Halifax www.destinationhalifax.com
Halifax's World Trade and Convention Centre www.wtcchalifax.com
Tourism Quebec www.quebecregion.com
Quebec City Convention Centre www.convention.qc.ca
Niagara Falls Tourism www.niagarafallstourism.com
Ottawa Tourism Convention Authority www.ottawatourism.ca

Largest Canadian industries in 2005 by annual GDP

Industry	Annual GDP
Finance and insurance, real estate and renting and leasing and management of companies and enterprises	$213 billion
Manufacturing	$185 billion
Wholesale trade	$67 billion
Construction industries	$64 billion
Retail trade	$63 billion
Health care and social assistance	$61 billion
Public administration	$59 billion
Transportation and warehousing	$52 billion
Educational services	$47 billion
Professional, scientific and technical services	$46 billion
Information and cultural industries	$45 billion
Mining and oil and gas extraction	$41 billion
Utilities	$28 billion
Other services (except public administration)	$26 billion
Administrative and support, waste management and remediation services	$24 billion
Agriculture, forestry, fishing and hunting	$24 billion
Accommodation and food services	$23 billion
Arts, entertainment and recreation	$10 billion

Source: Statistics Canada, http://www40.statcan.ca/l01/cst01/econ41.htm?sdi=industry%20gross

Beyond the Big Three: A review of second-tier cities in Canada
Some of Canada’s smaller cities offer opportunities for exceptional experiences, and most have modern facilities.

“Stampede Park in Calgary (www.stampedevenues.com) is a gorgeous facility,” says Bob Macgregor, Managing Director of Diversified Business Communications, Markham, Ontario. “And costs are lower.” Ottawa (www.ottawatourism.ca), the nation’s government center, is a tougher city to book, warns Macgregor, but its Congress Centre (www.ottawacongrescentre.com) is expanding.

Halifax has history, a beautiful setting on a natural harbor and more than 3,500 hotel rooms near its state-of-the-art World Trade and Convention Centre (www.wtcchalifax.com). And it’s easily accessible from the northeastern United States. Also worth considering are Quebec City (www.quebecregion.com) and Niagara Falls (www.niagarafallstourism.com) in the East and Victoria (www.victoriabc.com), near Vancouver.








CANADA UPDATE (Oct. 6, 2006): Canada discontinues GST Visitor Rebate Program, impacting non-Canadian show organizers, exhibitors and attendees