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International travel account
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Canada's international travel deficit climbed to its highest level ever in the third quarter of 2007, as spending by Canadians in the United States reached record levels.
The deficit—that is, the difference between spending by Canadian residents abroad and spending by foreigners in the country—jumped to an estimated $2.5 billion in the third quarter, up $281 million from the second quarter. (Unless otherwise specified, quarterly data are seasonally adjusted.)
The increase in the deficit was fuelled by record spending by Canadian residents abroad, specifically in the United States. Overall, Canadian travellers spent $6.7 billion outside the country in the third quarter, 4.9% more than in the second quarter.
Travel spending by Canadians abroad has shown an upward trend in recent years, increasing in 11 of the last 12 quarters.
Foreigners visiting Canada also spent more in the third quarter of 2007, but to a much lesser extent. Travellers from abroad spent $4.2 billion in Canada, 0.8% more than the second quarter and the highest amount in two and a half years.
Travel deficit with the United States highest in almost 16 years
Canada's travel deficit with the United States climbed to its highest level since the end of 1991, as spending by Canadians in the United States soared to a record high in the third quarter of 2007.
Note to readersThis international travel account analysis is based on preliminary quarterly data, seasonally adjusted unless otherwise stated. Amounts are in Canadian dollars and are not adjusted for inflation. Receipts represent spending by foreigners travelling in Canada, including education spending, medical spending and spending by crew members. Payments represent spending by Canadian residents travelling abroad, including education spending, medical spending and spending by crew members. Overseas countries are those other than the United States. |
Canadians spent almost $3.9 billion south of the border in the third quarter, up 10.3% from the second quarter. As a result, the travel deficit with the United States climbed $362 million to $1.8 billion.
The higher spending was the result of increased same-day and overnight travel to the United States. Overnight travel to the United States reached 4.5 million trips in the third quarter, 7.5% higher than in the second quarter and the highest level in 15 years.
Canadian same-day car travel, often used to measure cross-border shopping patterns, passed the 6-million-trips mark for the first time since the events of September 11, 2001. It reached 6.1 million trips between July and September, up 4.2% from the second quarter.
Media coverage this summer about the Canadian dollar inching towards parity likely contributed to the increase in both overnight and same-day travel to the United States. The loonie reached parity with the US greenback on September 20.
Meanwhile, spending by Americans visiting Canada remained unchanged, at $2.1 billion. However, overnight travel to Canada slipped to 3.3 million trips, down 1.5% from the second quarter.
Travel deficit with overseas countries declined after record high
Canada's travel deficit with overseas countries fell to $715 million in the third quarter of 2007, down $81 million from the high registered in the second quarter.
The drop in the deficit was the result of increased spending by overseas visitors in Canada and lower spending by Canadians overseas.
Visitors from overseas countries spent $2.1 billion in Canada in the third quarter, up 1.6% from the second quarter. The increase in spending came despite a 0.4% drop in overnight travel from overseas countries, which slipped to 1.1 million trips.
Meanwhile, Canadians spent $2.8 billion in overseas countries, down 1.7% from the second quarter. Quarterly spending in overseas countries has fallen only twice in three years.
Spending fell despite record travel to non-US destinations. Canadians made 1.8 million trips overseas in the third quarter, up 1.3% from the previous three-month period.
During the third quarter of 2007, the Canadian dollar gained against other major international currencies such as the euro, the UK pound sterling and the Japanese yen.
Definitions, data sources and methods: survey numbers, including related surveys, 3152 and 5005.
The international travel account for 2007 and the fourth quarter of 2007 will be released on February 28, 2008.
For more information, or to inquire about the concepts, methods and data quality of this release, contact Eric Desjardins (613-951-1781; eric.desjardins@statcan.gc.ca) or Client Services (toll-free 1-800-307-3382; 613-951-9169; fax: 613-951-2909; tourism@statcan.gc.ca), Culture, Tourism and the Centre for Education Statistics.
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