Rising Loonie Generates Perfect Storm for Tourism

The rising Canadian dollar has helped to create a “perfect storm” of problems for Canada’s tourism industry. Canada already suffers a $4.4 billion annual deficit with the U.S. in tourist dollars.

Confusion over regulatory changes to passport requirements for Americans traveling north, border delays, and high gas prices, have already been keeping more and more Americans away from Canada.

A spike in the loonie will likely make matters worse, Chris Jones of the Tourism Industry Association of Canada told CTV. The loonie reached 98.51 cents U.S. on Wednesday afternoon after climbing above the 99 cent mark earlier in the day..

Americans along the border who would normally visit for the day are increasingly staying home or watching their bottom-line once they’re here. Overnight visitors and those who stay for several days or weeks are less likely to be affected by a rising loonie.