Air Canada has slashed its Vancouver-to-Beijing/Shanghai service from 14 flights a week to seven as the airline cuts costs in response to record fuel prices.

The airline announced on Jul. 4 that effective Oct. 26, it will fly from Vancouver to Beijing three times a week and from Vancouver to Shanghai four times. It currently offers a daily service to both Chinese cities.

The service reduction worries B.C. tourism officials trying to boost the number of Chinese visitors to the province. Travel to B.C. will be showcased to media and tour operators in Beijing this summer during the Olympics.

"Obviously this is troubling for us because we're completely at the mercy of airlift capacity to drive long-haul business," Tourism BC president Rod Harris said in an interview.

Canada is still trying to nail down an Approved Destination Status deal with China, which would allow more Chinese residents to travel to this country. But Harris notes that even without that status, China remains a vital market for B.C.

More than 91,000 Chinese residents visited B.C. last year, putting it ahead of other international markets like Germany, Taiwan and Hong Kong. The average Chinese visitor in 2006 spent more than C$2,800.

Tourism BC expected a modest increase in Chinese visitations to B.C. this year, but Harris said those prospects could be affected by the reduction in Air Canada's flights.

The airline announced last month it would cut its system capacity by seven per cent and shed up to 2,000 jobs to become more efficient as fuel costs skyrocket. Previously announced route cancellations and suspensions include Vancouver-Osaka, Vancouver-Sacramento, Calgary-Prince George, Calgary-Comox and Toronto-Kelowna.

"We prefer to maintain the integrity of the network by opting for reduced flight frequencies, rather than cancellations, and that's what we have done here by keeping a daily non-stop service between Vancouver and China," Air Canada representative Angela Mah said in an interview.

She noted the service cuts don't take effect until the fall, when demand traditionally drops off - indicating the airline is satisfied with the current passenger load.

"We match capacity with demand, so we will maintain our double-daily flights from Vancouver to China throughout the summer," Mah said.

She said service cutbacks announced at the airline so far represent the "vast majority" of planned autumn and winter schedule reductions, although Air Canada will continue to evaluate future demand.

University of B.C. associate professor Marc-David Seidel doubts the cutbacks will have a huge impact on travel between Canada and China, noting Air China and China Eastern Airlines still offer regular services from Vancouver to Beijing and Shanghai.

He said Air Canada's decision to maintain a reduced service to the two cities will make it easier to boost it in the future when the need arises.

"If they had pulled out entirely, it would have been harder to re-enter in the future because they'd have to renegotiate local contracts," Seidel explained. "By keeping some service, it's very easy to add capacity later."

Cathay Pacific Airways recently announced rising costs would force it to reduce its Vancouver-to-Hong Kong service from 21 flights a week to 17 by mid-September.

Vancouver International Airport Authority chief financial officer Glenn McCoy said the airport has expected airline cutbacks, given the rising cost of fuel.

"It's a concern whenever you have a reduction in capacity," he said. "But I think we still have a very good stable financial base that will allow us to withstand the impact of this."