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Crossing Borders

Author: Sandi Cain
May 2007

Features

When fabulous Canadian and Mexican locales beckon, plan on some extra steps to ensure smooth crossings and successful outcomes.

There’s something undeniably exotic and magical about heading to another country for a meeting or convention. Easy access, favorable exchange rates, scenic locations and easy-to-work-with locals all add to the draw for U.S.-based meeting planners heading to Mexico and Canada.

Last year alone, U.S. business travelers spent more than $1.5 billion in Canada. Of them, meetings and conventions travelers made up 13.6 percent of all travelers to Canada. Additionally, U.S. meeting-goers spent the most per-night of any overnight travelers in Canada. As a result, the Canadian Tourist Commission (CTC) has beefed up its investment in marketing to this lucrative sector. They’ve recently ramped up those efforts with a new marketing campaign that carries the tag line of “keep exploring” to make Canada a must-see destination.

“There are so many diverse locations to hold meetings across the country with many different types of scenery,” says Stuart Taylor, specialty sales manager for Chip Hospitality’s Edmonton group sales office and president of the Edmonton chapter of Meeting Professionals International. “Most cities have major U.S. airlines that offer nonstop service to multiple cities, which makes it easier for attendees to travel to Canada,” he notes.

In Mexico, meetings and convention attendees boosted Mexico to No. 11 among the most-visited countries worldwide, according to the International Congress and Convention Association. Last year alone, the business visitor segment in Mexico increased 7.7 percent.

Like Canada, Mexico is easily accessible from most parts of the U.S. Further, Mexico offers 52 convention centers and almost 250,000 luxury hotel rooms across the country. Its beaches, fishing and golfing opportunities are only part of the total package that helps draw international meetings and incentive programs.

“There’s excellent infrastructure, professional services and suppliers and, of course, the Mexican hospitality,” said Raul de la Cerda, editor of Masexpos Magazine in Mexico City.

Since 2001, some companies have preferred Canada and Mexico to more distant destinations because of shorter travel times. Others—especially in the public sector—have opted for these North American destinations out of concern that using far-flung destinations might appear too extravagant.

Planners have found that attendance often goes up in Mexico and Canada and that they are popular with the incentive crowd. What’s more, meeting attendees are more prone to bringing family along for the ride.

“Canada’s an appealing destination that draws more attendance,” says Linda Hrycaj, director of operations for Keystone Symposia located in Silverthorne, Colo. Hrycaj conducts more than 100 meetings for 300 to 400 people each year, half of which are held in Canada. “It’s a great place to bring the family,” she says. Hrycaj tries to leave enough time in each program for attendees to get out and enjoy the area around Banff and Lake Louise.

In Mexico, groups will sometimes conduct “back to back” events consisting of a sales meeting followed by an incentive program, says Andy Ortiz, director general of Global Incentive Management in Cancun and past president of the Mexico MPI chapter. “Planners are always looking for new destinations,” he says. “How many are there for incentive groups?”

Ready to pack your bags? Not so fast! The proximity of both Canada and Mexico lead many in the U.S. to think of them as extensions of our own society. Yet they are foreign countries with different customs and laws, and planners headed to either one need to do their homework to make sure everything runs smoothly.

“It’s important to remember that doing business in Mexico isn’t like going on vacation,” says Paul St. Armour, general manager for tradeshow management company EJ Krause in Mexico. “Make sure you are aware of the rules and regulations and get very good advice,” he says. “Too many people think it’s like going to California.”

That brings us to the nuts and bolts of some things you need to know and do to stage a successful event across borders.

LAYING THE GROUNDWORK
Both Canada and Mexico have convention and visitor bureaus, tourism offices, destination management companies and local chapters of organizations like Meeting Professionals International that are good resources to get you started.

In Canada, the Canadian Tourism Commission, the CVB in the city you’ve chosen and local destination management companies can be of assistance. For example, Hrycaj suggests that groups heading to Vancouver be sure to check cruise ship schedules through these agencies to avoid the same arrival or departure times.

“It creates havoc at the airports,” she says.

The Mexico Convention Bureau, along with CVBs in most popular destinations like Cancun, Cozumel, Guadalajara, Ixtapa-Zihuatanejo, Los Cabos, Mazatlan, Mexico City and Puerto Vallarta are also good starting points.

Additionally, Ortiz suggests that planners schedule a site inspection when thinking of Mexico. “The site inspection is very important unless you have a relationship (with a property) already,” he says.

DMCs can assist with additional details. In Mexico, they typically get requests for airport transfers, sightseeing, themed events and dine-arounds, but can also provide back-up assistance for other aspects of the event you might typically handle yourself at home. Tim Brown, managing partner of Newport Beach, Calif.-based Meeting Sites Resource, relies on them for things like a list of approved restaurants for the group and help with distributing materials to attendees.

PASSPORTS, VISAS AND IMMIGRATION ISSUES
Making air arrangements could be the least complex aspect of taking your group to Canada or Mexico, as both countries are easily accessible from most parts of the U.S. However, planners need to take note of the distance from airports to resort destinations. Lengthy travel times on the ground might sometimes deter sought-after speakers.

Passport and visa regulations have changed everywhere in recent years—Canada and Mexico included—partly in response to new U.S. requirements. Gone are the days of waving a driver’s license at customs officials and zipping on through the airport. Today, customs can take on the tone of a reality show, with travelers waiting with baited breath to find out if they pass muster or get voted off the island.

NEW U.S. RULES
On January 23, the Western Hemisphere Travel Initiative (WHTI)—passed on the recommendation of the 9/11 Commission—kicked in. In essence, it requires citizens of the U.S., Canada, Mexico, the Caribbean and Bermuda to present passports to enter the U.S. when arriving by air from any part of the Western Hemisphere. A separate rule governing arrivals by land and sea from these areas also will apply to arriving passengers from Central and South America, but the launch date for that was pushed back until June 2009 after protests from many tourism quarters.

Make sure to remind attendees who need a passport to apply well in advance of their trip. With so many applications coming in, due to the new requirements, the backlog at the U.S. Department of State has grown since the first of the year. The “expedited” surcharge for renewal passport processing, as of the print date of this issue, only promises delivery within four to five weeks. New passports take even longer.

Hrycaj recommends telling prospective attendees living in the U.S. on a green card to make certain they can leave the country and return with that card. Otherwise, they may find themselves on an extended trip while they sort things out.

If you are inviting attendees from other countries, provide fraud-proof letters of invitation using things like holograms; have them signed in a color other than black that’s not easily reproduced on standard printers.

MEXICO
Mexico requires U.S. citizens to present proof of citizenship and photo I.D. To keep things simple, they advise carrying passports, though original birth certificates and some other documents may qualify. Those traveling beyond the border zone (which ends around Ensenada in Baja) must obtain a tourist card, which is provided during your flight to Mexico, but is also available from Mexican consulates, tourism offices and border crossings. The fee for the tourist card is included in the price of most airline tickets. Business travelers must submit a form that authorizes them to conduct business for a 30-day period.

Tourists can bring in personal effects duty-free, but there are limits on the number of DVDs, music CDs, unused film and other electronics. Check the visitmexico.com website for details before you go.

CANADA
Canada requires passports from U.S. citizens. Citizens of other countries may also need a visa.

Canadian immigration officials have tightened entry requirements since 2002, but more recently have gained access to information about incoming travelers not previously available. This is due to information-sharing agreements with the U.S. As a result, they have been turning away more U.S. citizens at the border—sometimes for offenses that are not deemed criminal in the U.S. These have included some driving offenses long since expunged from records at home. Passenger anecdotes recounted recently in the San Francisco Chronicle included people turned away for 20-year-old DUI convictions and 30-year-old convictions for small amounts of marijuana. It might be wise to alert attendees to the increased screening to help them avoid potentially embarrassing moments at the border.

The Canadian Tourism Commission steadfastly denies there have been recent changes, saying the procedures have been in effect for five years. “The U.S. is an incredibly important market to us,” says William Harding, senior communications advisor for the CTC. “But people need to know what the admission requirements are.”

Canada allows those people who are deemed “criminally inadmissible” to apply for rehabilitation approvals. But the process is onerous (the instructions alone are several pages long) and carries a minimum cost of $170 (http://geo.international/gc.ca). If you have copies of all the documents they require on hand and can quickly pen a mea culpa letter, you should be able to get the certificate within six months.

According to the U.S. Immigration & Customs Enforcement website, Canadian Border Patrol refuses entry to “hundreds of non-citizens on average each day.” U.S. officials also can turn back Canadians under similar circumstances.

That being said, an informal e-poll of the National Business Travel Association’s 2,700 members asking about problems at the border for this story netted few replies and just one traveler who had experienced difficulty. The NBTA has an affiliate organization in Canada. Hrycaj, who conducts about 50 meetings a year in Canada, has had no reports of border crossing difficulties.

BASIC DIFFERENCES TO KEEP IN MIND
Time zones may not exactly correspond to what you know at home. In Canada, Western Saskatchewan, Alberta and the eastern portion of British Columbia are in the Mountain Standard Time zone; the rest of B.C. is on Pacific Standard Time. Canada has adjusted its daylight savings time dates to match the new U.S. dates of March 10 through November 4 (this year), but Saskatchewan does not observe daylight savings time at all.

Most Mexico destinations fall within either the Central or Mountain Standard Time zones. Upper Baja California is in the Pacific Standard Time zone. Note that Mexico will continue to switch to daylight time the first week of April and back to standard time the last week of October.

Be sure to ask about any national or regional holidays that may fall during your meeting. For instance, Canada celebrates its Thanksgiving in October, while Mexico celebrates several independence days. Banks and other businesses are likely to be closed on those days.

Ask about typical business hours at your destination. In Mexico, many businesses close between 2–4 p.m., so that wouldn’t be a great time to give attendees free time to shop!

If you’re heading to Quebec in Canada, make sure attendees know that the primary language is French in that province. In Mexico, English is widely spoken in the main tourist areas, but in more remote locations you may need to know some Spanish or take one of those handy electronic translators along.

Speaking of translators, St. Armour recalls a first-time exhibitor from China who never thought to have his promotional materials translated, and so he reminds planners to have some materials translated into Spanish for the Mexican audience. “It’s good to make sure you have people who speak the language and respect it and the culture,” he suggests.

TAX MATTERS
As of the beginning of 2007, Canada and Mexico had taken opposite approaches to taxes. Mexico in 2004 eliminated all VAT taxes for meetings organized by foreign companies in Mexico. Because Mexico is part of the Caribbean Basin, business meetings are U.S. tax deductible. As of last summer, attendees also can enjoy tax-free shopping when they spend more than $110 and meet other exemption requirements.

Canada, meanwhile, at first eliminated its Visitor Rebate Program for the goods and xservices tax (GST), which was to take effect as of April 1, 2007. However, the Canadian Association of Exhibition Management and Tourism Industry Association of Canada have worked vigorously to reverse this legislation. Accordingly, the 2007 Canadian budget—scheduled for a vote in April (but after press time)—contains a new approach. The federal government is to consider reinstating most of the GST rebate, which will be called the Foreign Convention and Tour Incentive Program upon passage. The bottom line for most meetings, conventions and trade shows is that they are likely to be exempt from the goods and services tax in most instances. If the measure does pass, there will be a new set of procedures to follow for rebate claims. Details are available for review at www.budget.gc.ca/2007 or from Canada’s Department of Finance.

SHIPPING
Shipping goods to a foreign destination can be a major headache, planners and show organizers say, unless you hire the right people to help. Freight forwarders and customs brokers are the best places to turn, but it’s still essential to know the rules for non-Mexican companies before sending promotional items or manuals merrily on their way.

“Go through a brokerage firm,” advises Global Incentive Management’s Ortiz. “There are many in the U.S. that can handle it.” Even so, he suggests starting the process three weeks ahead of your event.

A big mistake planners and exhibitors often make is to use Federal Express or UPS to send things to Mexico. “We stress never to use a courier service,” EJ Krause’s St. Armour says. “They can’t deliver to a booth at the show.” He says the most important thing is to find out precisely what can and can’t be done when shipping goods. Typically, if you only ship promotional materials, you won’t have a major worry, he says.

Canada has the means already in place to help planners expedite shipping through the Canadian Border Services Agency’s Convention Services Program. Using the program generally renders shipped goods duty-free and tax-free, says Debbie Reynolds of Tourism Vancouver. “The goods can be cleared right at the convention center or the convention hotel,” she says. “I was surprised that this is not the case in other countries.”

HEALTH/MEDICAL ISSUES
No shots are needed to enter either Mexico or Canada, but attendees should be reminded to check with their own medical provider about special circumstances. Also, planners need to ascertain if their liability policies cover international meetings. All attendees should carry their insurance cards and a claim form, just in case, and check with the insurance companies to see if they are covered when out of the country. Some insurers will pay for “reasonable” costs outside the U.S. in emergencies, but very few will pay for medical evacuation back to the States. (For a list of medical assistance companies, see Resources section below.)

Though there are hurdles to jump no matter where you head outside the U.S., planners find it worth their while to chose Mexico and Canada. “If you’re going to do international meetings, Canada is a great place to start,” Hrycaj says. “They’re extremely welcoming and appreciate the business, and that’s important.”

The same can be said for Mexico, where local governments are making major investments to draw more meetings and exhibition business. Many of its resorts have moved to all-inclusive meeting packages that significantly simplify budgeting for planners.

“Maybe you won’t find the biggest or most modern venue, but it will be a top-level one,” says Masexpos’ de la Cerda. “In any of Mexico’s destinations, you’ll find natural beauty, cultural legacy, some of the best hotels in the world, professional personnel, a wide range of prices and true Mexican hospitality.” What are you waiting for?

Sandi Cain, a regular contributor to Smart Meetings, is a freelance journalist who has covered the meetings, hospitality and tourism industries in Orange County for a decade on behalf of the Orange County Business Journal and other trade publications. She is a resident of Laguna Beach, Calif.

TAKEAWAYS FOR CROSSING BORDERS
Going to Canada

  • The Canadian Tourism Commission and individual CVBs are good resources to get you started.
  • To enter Canada by air, all U.S. attendees must have valid passports; citizens of other countries may additionally need visas. Green-card holders should confirm re-entry to U.S.
  • Background information sharing between the U.S. and Canada has heightened scrutiny at immigration, and therefore increased the possibility of being denied admission. There have been denials even for decades-past substance-abuse and DUI convictions. The record-clarification process takes six months.
  • Canada’s Daylight Savings Time matches that in the U.S., with the exception of Saskatchewan, which remains on Mountain Standard Time through summer.
  • Canada has just modified its Visitor Rebate Program for the goods and services tax (GST). Under the new Foreign Convention and Tour Incentive Program, pending final approval, tradeshow organizers and planners will not be required to charge the GST for entry to the event, for convention space, or to exhibitors in general. However, they will need to actively claim the rebate for hotel charges for attendees. (budget.gc.ca/2007; or ccra.gc.ca for inquiries)
  • The Canadian Border Services Agency’s Convention Services Program, in general, enables your meeting’s goods to enter duty-free and tax-free, to be cleared right at the hotel or convention center.

Going to Mexico

  • The Mexico Convention Bureau and the CVBs in the most popular destinations are a good starting point.
  • Be sure to do a site inspection if you don’t have a relationship with the property.
  • DMCs are often relied upon to handle things in Mexico that planners might do themselves in the U.S., such as airport transfers, sightseeing, themed events, etc.
  • While Mexico only requires a proof of citizenship and photo I.D. to enter, U.S. attendees must have a valid U.S. passport to return home by air.
  • Inbound air passengers will be asked to fill out a tourist card to present upon arrival, but business travelers must submit an additional form that authorizes them to conduct business for 30 days.
  • Mexico’s daylight savings program remains on the old U.S. schedule.
  • When scheduling activities, consider that many businesses are closed between 2 and 4 p.m.
  • There are no VAT taxes for meetings organized by foreign companies in Mexico.
  • Use a freight forwarder or customs broker to handle your shipping into Mexico.

HOW TO BE CHARMING
Doing business in other countries involves more than just logistics. By taking time to learn a little about business practices in the country you’re visiting, you will lessen the risk of a major faux pas while you’re there. And that’s as true in Canada or Mexico as it is for China or India. Here are a few to get you started:

Canada

  • When making business appointments, remember that Canadians abbreviate dates in a different sequence than in the U.S. If they tell you an appointment is set for 1-6-07, that’s June 1, not Jan. 6. When you go, be punctual.
  • Canadians sometimes think U.S. business is all about self-promotion, so it’s better not to exaggerate a product’s benefits during sales calls.
  • Canadians are a bit more reserved than U.S. citizens, so it’s important to avoid an “in-your-face” attitude in business dealings.
  • Start out addressing a person by title or Miss, Mrs., Ms. or Mr. plus the last name until invited to do otherwise.
  • Business gifts should be modest to avoid the appearance of ostentation.

Mexico

  • A high value is placed on knowing a person before conducting business with that individual, so it’s important to cultivate personal relations with the right people in the right places.
  • Punctuality isn’t always a high priority in daily life, but is expected in many business circles. Be on time, but don’t be surprised if your counterpart is late.
  • Start out addressing a person by using his or her title; if the person has no official title, use Senor (Mr.), Senora (Mrs.) or Senorita (Miss).
  • Giving gifts to executives is not required but small gifts are appreciated; however, secretaries do expect gifts.
  • Mexicans place a high value on individual dignity, so it is ineffective to pull rank or criticize someone publicly.

In both countries, be sensitive to the fact that the term “Americans” refers to all North Americans, not just U.S. citizens.

RESOURCES
 U.S. CONTACTS
Passport information: travel.state.gov
Travel warnings: travel.state.gov/travel/warnings.html
U.S. embassies and consulates in Mexico: www.sre.gob.mx
World Health Organization: who.int

CANADA
Canadian Tourism Commission: www.canadameetings.com
www.travelcanada.com; www.canada.travel/meetings
Canadian Border Services Agency Convention Services Program: www.cbsa.gc.ca

For information about whether you may be denied entry to Canada:
geo.international.gc.ca/can-am/seattle
www.ccsb.ca/cp/traveling_to_canada.htm

Meeting planners should contact Convention Services at the Canadian Border Security Agency three months in advance of the meeting to register the event and obtain a letter of recognition. The letter should be distributed to all attendees and presenters. A copy should be placed within shipping containers.

Professional organizations
MPI British Columbia: www.mpibcchapter.com
MPI Greater Calgary: www.mpi-gcc.com
MPI Edmonton: www.mpigec.ca

Currency
The monetary system mirrors that of the U.S.; however it has $1 and $2 coins in addition to 1 cent, 5 cent and 25-cent coins.

Shipping resources
Canadian Society of Customs Brokers: www.cscb.ca
Association of International Customs and Border Agencies: www.aicba.org

Telephones
Canadian phone numbers include an area code and number, just as in the U.S. You do not need to dial the international access code (011) to call Canada.

MEXICO
Mexico Convention Bureau: www.visitmexico.com
Email to: meetings@visitmexico.com

U.S. Embassy and Consular Services, Mexico City;
phone 011-5255-5724-7900
9 a.m.–2 p.m. and 3 p.m. –5 p.m.

Mexican Association of Fairs, Exhibitions and Conventions Professionals (AMPROFEC): www.amprofec.org.mx
MPI Mexico: www.mpimexico.org.mx

Currency
The currency is the peso. Coins come in denominations of 10, 20 and 50 centavos (cents) and 1, 2, 5, 10 and 20 pesos; bills come in denominations of 20, 50, 100, 200 and 500 pesos. While many businesses accept U.S. dollars, gas stations and most market vendors accept only pesos.

Shipping resources
Confederation of Mexican Customs Brokers at 011-525-533-0075, 011-525-533-0076, 011-525-533-0077, 011-525-533-0683 or 011-525-533-0684

Telephones
To call Mexico, you must dial 011, then the country code (52) followed by the area code and phone number you want. In Mexico City, phone numbers have eight digits. To call the U.S. from Mexico, dial 001 plus area code and phone number.

INTERNATIONAL BUSINESS SERVICES
Currency exchange, wire transfers Medical support Security
  • Protection for government officials and executives—Coyne Consulting Group, Woburn, Mass.: www.coyneconsultinggroup.com
  • Traveler advisories and alerts—E-Travel Technologies (based in Canada): www.etraveladvisories.com
  • Real-time tracking, monitoring and communicating with travelers—IJet Intelligent Risk Systems, Annapolis, Md.: www.ijet.com
  • Subscription-based travel alerts sent to you while you are traveling. The site claims to research accuracy of alerts before sending—www.allsafetravels.com
  • To check air-safety records of other countries—www.airsafe.com

Tax refund services

Telecommunications (international cell phones)

Source: Kiss, Bow or Shake Hands by Terri Morrison, Wayne A. Conaway and George A. Borden, Ph.D.