The Canada-U.S. border crossing at Osoyoos in British Columbia’s Okanagan valley (Joe Mabel)

Via the Victoria Times Colonist, new data from Statistics Canada shows the number of visitors to Canada from the U.S. is increasing.

The number of trips overall to Canada increased 2.6 percent in March from levels in February, and most of that was attributed to a 3.2 percent increase in the number of trips from the United States, which is the primary origin of foreign visits to Canada.

American residents made approximately 1.7 million trips to Canada in March, including over one million overnight trips, the highest number since February 2010.

Trips from countries other than the U.S. to Canada increased by only 0.2 percent in March from February. Trips from Mexico saw the biggest decline, with 8.9 percent fewer trips made from that country in March than in February.

For their own part, Canadians traveled abroad 1.7 percent less in March than February, and most of the decline was due to a reduction in trips to the U.S.

Many Canadians of Hong Kong origin find they can earn and save more in the South East Asian metropolis, which has one of the lowest tax rates in the world, than in Canada (Samuel Louie)

A story in Saturday’s Vancouver Sun reports that an increasing number of Canadian citizenship of Hong Kong origin are moving back to the South East Asian city, according to demographic data:

Statistics Canada’s numbers tell the tale. Despite Canada’s rapid population growth in the past 15 years, there are now 32,000 fewer Hong Kong-born residents in Canada than there were in 1996.

The 2011 National Household Survey, released last week, shows 209,000 Hong Kong-born residents in Canada (about one third of them living in Metro Vancouver). That compares to 241,000 who lived here in 1996.

Their total numbers in Canada have been dropping despite 1,000 to 2,000 new Hong Kong immigrants a year continuing to trickle in. Even accounting for deaths, it is clear that thousands of Hong Kong citizens each year have been leaving Canada.

The draw, according to Vancouver Sun columnist Douglas Todd, is money, which they can earn more of in Hong Kong, and family, who they seek to reunite with.

Hong Kong’s steady economic growth over the last three decades and vibrant free market have given it a better income-earning potential for some professions than Canada, making it a preferred place to live for some Canadian citizens, like Edward Shen:

“(In Hong Kong) I am perhaps working about 60 to 70 per cent of what I was in Vancouver, but saving up more than I used to, given the much lower tax rate (17 per cent flat tax),” Shen wrote in an email.

“Most Hong Kong people know that there is no big money to be made in Canada, even less so in Vancouver. Vancouver in many people’s eyes is a place for retirement of rich people, as they find the living standard in Vancouver very high. Which is true. People who want to make money choose Toronto over Vancouver.”

Hong Kong has a top marginal income tax rate of 17 percent and no capital gains tax.

Todd also suggests that many of the Hong Kong nationals only immigrated to Canada to acquire Canadian citizenship, with no intention of staying long-term, and points to a recent study conducted by the Citizenship and Immigration Canada funded Metropolis research body which found that some Chinese immigrants describe the three year residency requirement for becoming a Canadian citizen as “immigration prison”, which they must endure before they can repatriate back to their home country.

These repatriates are a new type of “international class of citizens”, according to Richard Kurkland, an immigration lawyer interviewed for the story. They are well-off, and like to have the mobility and insurance of having citizenship in more than one country.

The risk, according to Kurkland, is that if the country where these Canadian citizens live faces some type of catastrophe, it will be the responsibility of Canadian taxpayers to pay to get them out, as happened when some of the fifty thousand Canadian citizens living in Lebanon were airlifted out of the country during the 2006 Hezbollah-Israel war.

Similar to the Lebanon experience, Hong Kong residents holding Canadian passports could return in large numbers and burden the country’s social programs if China imposes more restrictions on the semi-autonomous jurisdiction, Kurkland warns.

Criticized by some, and welcomed by others, Canada’s small Islamic banking sector is growing as Canadian Muslims look for financial products that are consistent with their religious values

Amid the headlines in recent weeks of a group of Muslim extremists plotting a terrorist attack in Canada, a look at some of the mundane ways in which Canada’s growing Muslim communities are having an impact can be a refreshing reminder that the bad apples are few and far between, and that the majority of Muslim-Canadians are ordinary individuals who strive to lead productive lives and contribute positively to their country.

The rising profile of the “Islamic banking” industry is one of these ways, and on Friday the Hamilton Spectator published a story detailing its exposure in Canada and how it works:

If Islamic finance prohibits charging interest (riba), how do they function? Ensuring fair play is at the core of Islamic banking. As such, the principle of “risk-sharing” is a critical component. In essence, the Islamic bank becomes a business partner with the customer. For example, a car lease is appropriate because the bank has a stake in the ownership of the car. There are two principle financing arrangements offered to borrowers: murabaha (instalment sale) and ijara (redeemable lease). In the murabaha example, the bank buys the asset (e.g. large screen television) and then resells it to the customer at a higher price while the customer still uses it.

Islamic banking has been growing at 10-15 percent a year globally over the last decade. It forbids profit through interest, speculation, uncertainty, exploitation, and funding activities prohibited to Muslims, including consumption of pork, gambling and alcohol.

Various work-arounds are used by Islamic banks to earn a profit while complying with the prohibition to charge interest, like providing capital through purchases of equity instead of debt. Often these arrangements make the financial instruments in effect very similar to interest-based lending, leading some to criticize it as dishonestly advertised for profit, or to promote Islam.

The sector’s supporters say it provides a means by which people can bank in accordance with their values by avoiding lending at very high interest rates or providing funding to activities they are religiously and/or ethically opposed to, like the production of pornography or alcoholic beverages.

Canada’s Islamic banking sector is still relatively small compared to that of other Western countries. The recent bankruptcy, along with reports of corruption by its top executives, of UM Financial, which billed itself as a sharia-compliant mortgage issuer, has been a setback for the sector, but it is likely it will continue to see growth in the coming years given the rising population of Canadian Muslims, which now number nearly one million.

Waterloo, Ontario, sometimes called Silicon North, is one of Canada’s major tech centres. Citizenship and Immigration Canada hopes the new Start Up Visa encourages foreign technology entrepreneurs to start companies in the country

Canadian Citizenship and Immigration Minister Jason Kenney will be visiting California’s Silicon Valley on Friday for a four day trip intended to promote Canada as a place to live for the region’s entrepreneurs.

According to an article in San Jose’s Mercury News, a billboard is currently appearing near Silicon Valley advertising Canada to foreign tech workers struggling with H-1B visa restrictions:

On Tuesday, just days before Kenney was set to tour San Francisco and the South Bay to promote his new visa for startup entrepreneurs, a giant red maple leaf emerged on a billboard off Highway 101 on the route from San Francisco to the heart of Silicon Valley, part of a Canadian advertisement encouraging tech workers here temporarily to migrate north permanently.

Modeled on an idea first introduced but never passed in the U.S. Congress, Canada’s new “startup visa” grants permanent residency to entrepreneurs who can raise enough venture capital and start a Canadian business.

“H-1B problems?” asks the South San Francisco billboard, referencing America’s temporary visa for skilled foreign workers. “Pivot to Canada.”

Citizenship and Immigration Canada (CIC) hopes to capitalize on the frustration tech companies in the U.S. are feeling over immigration restrictions on foreign technology workers and encourage them to relocate to and invest in Canada.

The eventual goal is to help foster the development of a Canadian equivalent to Silicon Valley.

One challenge that CIC faces in this mission is the country’s top marginal income tax rate, which is significantly higher than that of the U.S. A Canadian entrepreneur can look forward to paying about 50 percent of their income to the government if they succeed in joining the top bracket of income earners.

Compensating for this disadvantage, the federal government is offering a perk that no other advanced economy offers foreign entrepreneurs: permanent residency status.

For foreign tech workers in the U.S. anxiously awaiting the six year limits on their H-1B visas, immigration to Canada offers a chance of stability that only permanent residency can provide.

Also working in Canada’s favor is the perception of being a safer country than the U.S., with significantly lower violent crime rates, particularly homicide rates. A better fiscal situation, with a much lower deficit to GDP ratio than the U.S., also gives foreign nationals more confidence in the country’s economic future.

Regardless of how successful CIC’s headhunting campaign in Silicon Valley ends up being, the federal government has a lot of ground to make up for, with total venture capital funding in all of Canada in 2012 coming to $1.5 billion -less than 15 percent of the $10.9 billion worth of deals that happened in Silicon Valley last year.

Passport services are not expected to change when Citizenship and Immigration Canada takes over responsibilities for them on July 2 2013

The federal government announced last week that Canadian passports would come under the responsibility of Citizenship and Immigration Canada (CIC) this summer.

Passport Canada is currently managed by the Department of Foreign Affairs and International Trade (DFAIT), which will officially transfer control of the program to CIC on July 2 2013.

Service Canada, which is a part of Human Resources and Skills Development Canada (HRSDC), meanwhile will manage passport operations, and Service Canada Centres will gradually offer more passport services, eventually also providing online applications for passports.

The federal government hopes to see efficiency gains from the move on account of CIC’s current responsibilities being more closely related to passports than those of DAIFT.

“The government is committed to making passport services more convenient and accessible for Canadians,” said Citizenship and Immigration Minister Jason Kenney. “As Citizenship and Immigration Canada is already responsible for determining Canadian citizenship, integrating the passport program into the department makes good sense.”

Human Resources and Skills Development Minister Diane Finley added:

“Through Service Canada, we offer single-window access to a wide range of Government of Canada programs and services for citizens. Leveraging Service Canada’s resources and service delivery network across the country will make passport services more accessible and convenient.”

Citizenship and Immigration Canada announced on Friday that it is re-opening the Parent and Grandparent Sponsorship Program in January 2014, with new financial requirements and responsibilities for sponsoring children and grandchildren

Citizenship and Immigration Canada (CIC) announced on Friday that it will lift the moratorium on new Parent and Grandparent (PGP) permanent resident applications on January 2, 2014.

The program has been closed to new applications since November 2011 to give CIC time to work down the mounting backlog of parent and grandparent sponsorship applications.

Commenting on the program re-opening, Citizenship and Immigration Minister Jason Kenney said:

“The Action Plan for Faster Family Reunification is on track to meet the goals of cutting in half the backlog and wait times in the Parent and Grandparent program. It is very important that we continue to make progress and not return to the old broken system with wait times as long as a decade—that would be unfair to families.”

CIC also said that the total number of parents and grandparents admitted as permanent residents through 2012 and 2013 will be 50,000 which is the highest level in 20 years, and it intends on maintaining these levels in 2014.

Another change announced on Friday is the Super Visa program, while allows foreign parents and grandparents of Canadians to visit Canada for up to ten years, for two years at a time, becoming permanent. Over 15,000 Super Visas have been granted since the program started in December 2011.

With regard to the Parent and Grandparent sponsorship program, CIC says they plan on accepting 5,000 new applications in 2014, and continue to reduce the backlog by processing applications faster than receiving them.

New financial requirements for Parent and Grandparent sponsorships

When the Parent and Grandparent sponsorship program re-opens next year, it will be with new qualifying criteria which will increase the financial responsibility of sponsors to ensure their parents and grandparents can be supported for the remainder of their life in Canada and to reduce the likelihood they will increase expenses for Canada’s social welfare programs.

Minimum income for sponsors will increase from the current Minimum Necessary Income (MNI), an income threshold used by the federal government to establish eligibility in many programs, to Minimum Necessary Income + 30 percent, to account for the greater costs of supporting an elderly person.

The type of proof of income that CIC will accept will be limited to documents from the Canada Revenue Agency, and the length of time that a person applying to be a sponsor has to demonstrate that they met the minimum income requirements will be increased from the current one year to three years.

Kenney said these changes are necessary to protect Canadians from being burdened by higher taxes as a result of sponsors having inadequate financial resources to support their sponsored parents and grandparents:

“These new criteria ensure sponsored family members are well supported by their sponsors throughout their time in Canada. The redesigned Parent and Grandparent program reunites families faster while respecting Canadian taxpayers and the limited resources for health and social programs.”

CIC says that Canada is one of the few developed countries to allow grandparent sponsorship, with this option either not existing or being extremely limited in United States, United Kingdom, Australia and New Zealand, and measures like those announced Friday are needed to prevent this generosity from being abused.

Age limit on Dependent Children sponsorship

The Dependent Children sponsorship program is also going to see maximum age limit of 19 years imposed, disqualifying those older than 19 years old from being considered dependent children even if they are full time students or financially dependent on their parents.

The change was made after research by CIC found that many of those qualifying as dependent children were in their late 20s or 30s, and that those who immigrate at an older age have a lower likelihood of successfully integrating into the Canadian labour market and have poorer socioeconomic outcomes than those who immigrate at a younger age.

A downtown Vancouver sidewalk. The portion of new Canadian immigrants that settled in Vancouver declined from 13.7 percent in 2006 to 13.3 percent in 2011 as Canada’s smaller cities, particularly in the prairies, attracted newcomers with their strong labour markets (CICS News)

A Vancouver Sun report published Wednesday, titled Canada’s ‘Big Three’ metro areas lose lustre as newcomers opt for smaller cities, examines the phenonemon of immigrants choosing the Big Three Canadian cities less in favour of Canada’s smaller cities:

Released Wednesday by Statistics Canada, the 2011 numbers reveal that Toronto’s share of newcomers fell to 32.8 per cent, down from 40.4 per cent in 2006, while Vancouver’s share dropped to 13.3 per cent from 13.7 per cent. Montreal was the only “Big Three” immigration city to post a gain: 16.3 per cent of newcomers, versus 14.9 per cent in 2006.

Excluding the Big Three, the cities drawing the most newcomers were those with the most promising job markets: Calgary, at 6.1 percent of all new immigrants, Edmonton (4.3 percent), and Winnipeg (3.9 percent).

The oil wealth of Alberta has contributed to the province having the lowest unemployment rate and the highest per capita GDP in the country, making the immigration shift to that province’s cities unsurprising.

Another factor contributing to the shift to cities other than the Big Three is the Provincial Nominee Programs (PNPs), which provide those hoping to immigrate to Canada with new routes to immigrate if they are able to acquire eligible work experience in a province.

Some PNPs, like the Manitoba Provincial Nominee Program (MPNP), have a lower work experience threshold for eligibility and are granted a higher quota by the federal government for the number of foreign nationals they can nominate for permanent residence annually, and this has resulted in a boost in the number of immigrants settling in their corresponding provinces.

Among the advanced economies, only Australia has more foreign born residents as a portion of its total population than Canada

Canada is behind only Australia in the relative size of its foreign born population, according to a new Statistics Canada report. Among the G8, Canada’s foreign born component, at 20.6 percent of the total population, is the largest.

The statistics follow the trend in recent years of Australia followed by Canada having the highest per capita immigration rates in the world.

Public opinion in the two countries, as well as in Finland and South Korea, has been the most accepting of immigration among the advanced economies.

The Statcan report shows that about 1,162,900 foreign-born individuals entered Canada between 2006 and 2011 and that combined they make up 17.2 percent of Canada’s total foreign-born population.

Among this group, 56.9 percent came from Asia and 78 percent are visible minorities. This is a reverse of the situation prior to 1970, when only 8.5 percent of the foreign born population was from Asia and 12.4 percent were visible minorities.

Family class permanent residence applications increased by 15 percent in 2012 over the year before according to Citizenship and Immigration Canada

Citizenship and Immigration Canada (CIC) announced on Tuesday a 15 percent increase in the number of individuals admitted under the family class immigration program in 2012 over the year before.

In the announcement, Citizenship and Immigration Minister Jason Kenney promoted CIC’s faster processing of family class applications:

“By reducing the backlog through increased admissions, we have dramatically reduced wait times so that parents and grandparents no longer have to wait close to a decade to be reunited with their loved ones.”

The increase in admissions occurred despite CIC having stopped accepting new applications under the Parent and Grandparent stream of the family class program in November 2011. The moratorium on new Parent and Grandparent sponsorship applications likely contributed to the reduction in the program backlog.

CIC is targeting a 50 percent reduction in the family class application backlog and in the processing time of applications in 2013.

The department has been moving away from sponsorship of Parent and Grandparents for permanent residence, and moving toward extended temporary stays, with the creation of a new ‘Parent and Grandparent Super Visa’ in December 2011 that allows unlimited re-entries for parents and grandparents of Canadians for up to ten years, and allows them to stay in Canada for two years on each visit.

New Canadians taking their Citizenship Oath. After nearly one year, the Federal Skilled Worker Program opened to new applications on May 4 with a set of changes to the applicant assessment process (Citizenship and Immigration Canada)

The federal government began accepting Federal Skilled Worker (FSW) applications on Saturday, marking an end to a nearly one year moratorium on the skilled worker program.

The annual reset of the program’s quota was scheduled for July 1 2012, but was postponed due to a backlog of FSW applications that Citizenship and Immigration Canada (CIC) said it needed to work through, and to give CIC time to make changes it said were needed to make the program better meet Canada’s economic needs.

The new annual quota for the FSWP is set at 5,000 applications, which is less than the 10,000 application cap of 2012, and is expected to be filled quickly as immigration hopefuls rush to apply after a years-long wait. The 5,000 applications accepted are expected to represent about 12,500 people as they will include spouses and dependents of principal applicants.

Citizenship and Immigration Minister Jason Kenney promoted the goals of the program changes on Friday, saying they would benefit Canada:

“The government’s number one priority remains jobs, economic growth and long-term prosperity. Our changes ensure not only that Canada can select the immigrants most needed by our economy, but that they are best positioned for success.”

These changes include a greater weight placed on English or French language ability, applicants of a younger age, and Canadian work experience, in assessments of FSW applicants. The changes were made after research and consultations to find the factors that most often accompanied successful economic integration and employment by immigrants.

The program has also introduced a requirement for applicants to provide Educational Credential Assessements (ECAs) for credentials earned outside of Canada, provided from one of three organizations designated to provide ECAs.