Canadians travelling overseas is up
Canadian Travel is up over the Last 5 years
OTTAWA — No wonder Canadian travel agents are finding there is plenty of business out there.
Overseas travel, the type Canadians would most likely use a travel agent for, has jumped 54% in the last five years as our economy boomed and our dollar soared. Canada’s international travel deficit narrowed in the second quarter of 2007. Foreign visitors increased spending in Canada while Canadian travellers reduced spending abroad.
The deficit (the difference between spending by Canadian residents abroad and spending by foreigners in Canada) slipped to an estimated $1.7 billion in the second quarter. This was a decline of $131 million from the first three months of 2007.
The deficit dropped for the second consecutive quarter since reaching a record high of $2.0 billion in the fourth quarter of 2006. However, the travel deficit still remains one of the highest ever.
Increased travel spending in Canada contributed to the trimming of the deficit. Foreigners spent $4.2 billion in the country in the second quarter, up 2.1% from the previous quarter.
Also, Canadian travel spending abroad slipped for the second consecutive quarter, down 0.8% to $5.9 billion. Prior to this, it had increased for nine consecutive quarters.
The travel deficit with the United States dropped for the first time in a year in the second quarter of 2007, falling to its lowest level since the second quarter of 2006. The deficit slipped to $1.1 billion, down $195 million from the 13-year high observed at the start of 2007.
Travellers from the United States spent $2.1 billion in Canada in the second quarter, up 4.4% from the previous quarter. This was the first increase in spending in a year and only the second since the end of 2004.
Increased overnight travel spurred the higher travel spending from the United States. American residents took 3.4 million overnight trips in the second quarter, up 3.7% from the first quarter.
A drop in spending by Canadians in the United States also contributed to lowering the deficit. Canadian residents spent $3.2 billion in the second quarter, down 3.3% and the lowest level in a year. The decreased spending occurred despite a 13-year high in overnight travel south of the border, which reached 4.1 million trips, up 0.9% from the previous quarter.
In the second quarter, the Canadian dollar reached an average of 91 US cents, up 6.7% from the previous quarter and the highest level in nearly 30 years.