International travel account

Canada's annual international travel deficit reached its highest level in ten years. The deficit - the difference between what Canadians spend abroad and what foreigners spend in Canada - more than doubled in 2003. It increased from $1.9 billion in 2002 to an estimated $4.3 billion in 2003, the biggest since 1993.

This surge in the annual deficit was the result of a sharp decline in spending by non-resident travellers in Canada and a slight increase in travel spending abroad by Canadian residents.

Foreign travellers injected $14.6 billion in the Canadian economy in 2003, 12.8% less than in 2002 and the first decrease in more than 15 years. Meanwhile, Canadian residents spent a record $18.9 billion on travel abroad, up 1.7% from 2002. This was the ninth consecutive annual increase.

The war in Iraq and the SARS crisis may have been the most likely reasons foreign travellers spent less in Canada in 2003, while the stronger Canadian dollar may have contributed to the increase in Canadian travel spending abroad.

Non-residents made 38.9 million same-day and overnight trips to Canada in 2003, down 13.3% from 2002. Travel outside the country remained unchanged at 39.2 million trips.

This was the first year since 1997 that more Canadian residents travelled abroad than non-residents visited Canada.

Annual travel deficit with the United States almost triples

Canada's travel deficit with the United States rose considerably in 2003, as spending by American visitors in Canada dropped substantially more than Canadian travel spending in the United States.

Americans spent $9.0 billion in Canada in 2003, down 12.3% from the record high of $10.3 billion set in 2002. At the same time, Canadian residents spent $10.9 billion in the United States, 1.1% less than in 2002.

As a result, the travel deficit with the United States jumped from $681 million in 2002 to an estimated $1,828 million in 2003, the first increase and the highest level since 2000.

During the period, the value of the Canadian dollar increased 12.0% on average against its American counterpart.

Americans made 35.5 million trips to Canada in 2003, down 13.1% from 2002. Canadian travel to the United States fell 1.2% to 34.2 million trips in 2003.

Annual travel deficit with overseas countries jumps to a new high

Spending by overseas visitors to Canada decreased 13.6% to $5.5 billion in 2003, the third consecutive annual decline. These visitors took 3.4 million trips to Canada, down 15.6% from 2002.

Canadian residents made a record 5.1 million trips to overseas destinations in 2003, up 8.4% from 2002. Their spending on those trips rose 5.6% to $8.0 billion, the highest level ever recorded.

Consequently, Canada's travel deficit with countries other than the United States increased to an estimated $2.5 billion in 2003, breaking the previous record of $1.2 billion set in 2002. The deficit with overseas countries has increased considerably since 2000, when it stood at only $396 million.

On average, the Canadian dollar fell against the euro (-6.3%) in 2003, but increased its value against several other overseas currencies, including the British pound (+3.0%) and the yen (+3.9%).

Travel deficit increased in the fourth quarter

Canada's travel deficit with the rest of the world increased to an estimated $1.4 billion in the fourth quarter, after hitting $1.2 billion in the third quarter. This was the fourth quarterly increase of the deficit in 2003.

This result came mostly from an increase in spending by Canadian travellers outside the country, which surpassed the growth recorded in travel spending by foreigners in Canada. Canadian travellers spent $5.1 billion and made 10.4 million trips outside the country, up 8.3% and 5.5% respectively from the third quarter. Meanwhile, foreign residents spent $3.7 billion in Canada in the fourth quarter, 6.6% more than in the third. They took 10.1 million trips to this country, up 9.0% from the third quarter.

Slight increase of the travel deficit with the United States in the fourth quarter

Canada's travel deficit with the United States posted a slight increase in the fourth quarter, rising from $517 million in the third quarter to an estimated $524 million in the fourth.

Canadian spending in the United States increased 5.6% to $2.8 billion in the fourth quarter, the result of a 4.4% growth in travel to south of the border. During the same period, Americans made 9.2 million trips to Canada, up 9.3% from the third quarter. Their spending on those trips reached $2.3 billion, up 6.6% from the third quarter.

Canadian spending pushes up the travel deficit with overseas countries in the fourth quarter

Overseas residents, who took 871,000 trips (+5.7%) to Canada in the fourth quarter, spent $1.4 billion in Canadian destinations, up 6.7% from the third quarter. However, this increase was surpassed by a 12.0% jump in overseas spending by Canadians to $2.2 billion. These expenses were made on a record 1.4 million trips, a 13.0% increase from the third quarter. As a result, the travel deficit between Canada and countries other than the United States went up from $713 million in the third quarter to an estimated $867 million in the fourth quarter.

Definitions, data sources and methods: survey numbers, including related surveys, 3152 and 5005.

The international travel account data for the first quarter of 2004 will be released May 26.

For general information, contact Client Services (1-800-307-3382; 613-951-7608; fax: 613-951-2909; cult.tourstats@statcan.gc.ca). To enquire about the concepts, methods or data quality of this release, contact Jocelyn Lapierre (613-951-3720; jocelyn.lapierre@statcan.gc.ca), Culture, Tourism and the Centre for Education Statistics.