Tourism and hospitality are vital components of Canada’s economy, attracting millions of visitors each year due to its diverse landscapes, vibrant cultural scenes, and extensive recreational opportunities. This sector not only boosts local economies but also creates numerous employment opportunities across the country. However, local tour operators within this industry face several challenges, such as high competition, seasonal variations in tourist activity, and the pressing need to adopt digital technologies for effective marketing and operations management. Moreover, the increasing consumer interest in sustainable travel experiences compels operators to innovate and integrate eco-friendly practices into their service offerings. Addressing these challenges is crucial for operators to maintain competitiveness and align with evolving market demands and environmental standards.
Companies like Adam Hava Travel Inc. play a pivotal role in advancing Canada’s tourism and hospitality sector. Their robust tour management platform boosts operational efficiency and market reach for local tour operators by offering a 99% uptime guarantee to reduce booking disruptions, direct contracting capabilities with Online Travel Agencies (OTAs) to streamline operations, and advanced OpenAI content technology to enhance the quality and global accessibility of tour offerings. These features collectively provide Canadian tour operators with a competitive edge, attracting international travelers and improving operational effectiveness.
Company Overview
Headquartered in Iran and established in 2004, the parent company also known as “Adam o Hava Tour and Travel Agency Co.” is a leading technology provider for local tour operators in the tourism and hospitality sector. The company’s proprietary solutions enable tour operators and hospitality businesses worldwide to create content more easily, expand their customer reach, and practice sustainable tourism. These services help streamline operations, ensure content consistency across various Online Travel Agencies (OTAs), and enhance market presence, while catering to the demands of today’s eco-conscious travelers. The company has a robust international presence with offices in the United Arab Emirates, Oman and Qatar.
The company’s solutions are ideal for Canada, offering advanced, multilingual software that streamlines tour management and aligns with the country’s commitment to sustainable tourism. Their integration with global systems enhances the reach of Canadian operators, promoting growth and ecological stewardship in the tourism sector.
Realizing this significant market opportunity in the Canadian market, the parent company has decided to open a new subsidiary in Barrie, Ontario. This Canadian company, also known as “Adam Hava Travel Inc.” will mirror its parent company’s proven business model in providing advanced technology solutions and consulting
services to Canadian local tour operators while tailoring its services to meet the specific needs of its Canadian clients.
As the sole proprietor of the Canadian branch, the parent company will utilize its extensive industry experience to provide ongoing support for the establishment of its Canadian subsidiary. The collaboration between the Canadian subsidiary and its parent company will be crucial in ensuring the success of the company’s operations in Canada.
Mr. Seyed Mojtaba Mahdioun is the current Managing Director of the parent company and the parent organization has selected him to lead the establishment of the Canadian subsidiary as its Executive Director during its initial two-year phase.
Mr. Mahdioun is an industry veteran with over 19 years of leadership experience in the tourism technology sector. He has served as the managing director of the parent company since 2010 and is well-versed in the company’s operations, business model, and values. His leadership has been instrumental in expanding the company’s international market presence and enhancing its data analytics capabilities. Under his guidance, the company has ventured into eco-tourism and has become a leader in this segment in Iran over the past few years.
Considering his in-depth familiarity with the parent company’s operations and his extensive technical knowledge in digital transformation and eco-tourism, Mr.
Mahdioun is exceptionally well-suited to lead the establishment of the Canadian subsidiary during its formative two years.
As the Executive Director of the Canadian subsidiary during its initial two years, Mr. Mahdioun will oversee all operations, setting strategic directions aligned with the parent company’s mission and forging key partnerships. He will tailor products and services to the Canadian market’s specific demands, focusing on customer relationship management and local market penetration. Additionally, Mr. Mahdioun will be responsible for hiring and building a skilled Canadian team, ensuring regulatory compliance, and optimizing our offerings to meet the unique needs of Canadian customers.
After the initial two years, Mr. Mahdioun will return to his leadership role at the parent company, stepping down from his executive position at the Canadian subsidiary. An experienced General Manager will then assume leadership of the Canadian operations. Following this transition, Mr. Mahdioun will remain available at the parent company to offer guidance and support to the new General Manager as needed, ensuring a smooth continuation of leadership.
The company primarily caters to local tour operators, travel agencies, tour aggregators, and eco-tourism operators. The company’s core services include:
- Comprehensive Tour Management Platform
- Business Intelligence Tools for Local Tour Operators
- Eco-Tourism Consulting
Financial Summary
By the end of year 5, Adam Hava Travel Inc. will have 21 Canadian employees as part of its core team in Barrie, Ontario. This includes the hiring of 4 Canadian employees during its first year of operation (excluding Mr. Mahdioun) – More information is available in Section 11, Hiring Plan.
The company’s payroll expenses will begin at $395,000 in the first year and will reach $1,847,531 in its fifth year. Simultaneously, the Canadian company’s projected revenue is expected to commence at $756,250 in year 1 and soar to $5,313,315 in year 5.
Moreover, the parent company will invest $565,000 in the Canadian entity to ensure its well-establishment and will be responsible for the initial startup cost. The entirety of this fund has been already transferred to the Canadian subsidiary’s bank account to facilitate operational setup and initial market penetration. Verifiable documentation confirming the availability of these funds is available for review. This investment has been sourced from the parent company’s corporate funds without reliance on financial institutions.
It is also worth noting that the company’s financial forecasts (available in section 12) project operational expenses of $524,103 in the initial year, with a significant portion of the expenses stemming from the company’s hiring expenses.
The company’s financial projection has been created with an extremely conservative approach. In a worst-case scenario with even 0 revenue generated in year 1, the initial investment of $565,000 by the parent company creates a financial surplus of almost $40,897 at the start of the second year, providing a significant buffer for unexpected expenses and securing a stable beginning.
Significant Benefit Summary
Establishing this subsidiary in Canada provides substantial cultural and economic benefits, significantly impacting local communities and the broader Canadian tourism industry. Economically, the company’s technology solutions will drive job creation within the subsidiary and stimulate growth in related sectors by empowering local tour operators to enhance their service offerings. This growth aids in boosting local economies through increased employment, higher spending in adjacent industries like hospitality and retail, and augmented tax revenues. Culturally, the company promotes eco-tourism and integrates indigenous cultural experiences into its offerings, which helps preserve Canada’s unique heritage and promotes cultural understanding among tourists.
The subsidiary’s technology enables local tour operators to compete on a global scale by improving their operational efficiencies, expanding their market reach, and offering high-quality, sustainable tourism experiences that attract international tourists. This not only increases global visibility for Canadian tourism but also
supports sustainable economic growth by aligning with eco-friendly practices and celebrating cultural diversity.
Lastly, the parent company’s investment of $565,000 into its subsidiary significantly boosts the local economy by attracting further investment into the tourism sector in Barrie, Ontario. This capital infusion enhances infrastructure, increases employment, and encourages other businesses to invest in the area, amplifying the city’s economic growth and tourism potential.