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International travel account
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Canada's international travel deficit narrowed for the third consecutive quarter in the third quarter of 2008 to over $2.9 billion, dropping below the $3-billion mark for the first time in a year.
Lower spending by Canadians abroad and higher spending by foreigners in Canada both contributed to the decline.
Canadian residents spent about $7.1 billion on travel in the third quarter of 2008, down 1.7% from the previous quarter and the lowest level since the third quarter of 2007. Spending outside Canada is still relatively high. Prior to the fourth quarter of 2007, travel spending abroad had never reached the $7.0-billion mark.
Spending by foreign travellers in Canada edged up 0.2% to $4.1 billion, the second consecutive increase and the highest level this year.
Since the third quarter of 2004, spending by foreign travellers in Canada has been fairly stable, hovering between $4.0 billion and $4.4 billion.
Chart 1
Travel deficit drops for third consecutive quarter
On the other hand, outbound spending by Canadians has been on an upward trend, fluctuating between $5.1 billion and $7.5 billion. As a result, the travel deficit has nearly quadrupled in four years.
Travel deficit with the United States falls but remains high
Canada's travel deficit with the United States fell to $2.2 billion in the third quarter of 2008, down $80 million from the second quarter.
The travel deficit with the United States has fallen by $377 million this year but still remains high. The deficit peaked at $2.6 billion in the fourth quarter of 2007 after more than doubling from $1.2 billion in the second 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 $4.1 billion in the United States in the third quarter, down 1.8% from the previous quarter. Despite the decrease, this was still the third highest quarterly level ever.
The drop in spending was in line with a 1.5% decline in overnight travel to the United States compared with the previous quarter. Canadian residents made 4.7 million overnight trips to the United States in the third quarter of 2008, the lowest in a year.
In the opposite direction, American travellers spent $1.9 billion in Canada in the third quarter, up 0.3% from the second quarter and the highest level this year. This was the second consecutive quarterly increase.
American spending in Canada has been below the $2.0-billion mark for four quarters in a row. Before this period, the last time spending was below this benchmark was in the first quarter of 1998.
The increase in American spending occurred despite a 4.4% decline in overnight travel from the United States. US residents made 3.0 million overnight trips to Canada in the third quarter, the lowest level in nearly 15 years.
Travel deficit with overseas countries falls to lowest level in a year and a half
Canada's travel deficit with overseas countries fell $54 million to $771 million in the third quarter of 2008, the lowest level since the first quarter of 2007.
Lower spending by Canadians overseas mostly contributed to the decline. Canadians spent $2.9 billion in countries other than the United States in the third quarter, about 1.7% less from the previous quarter.
This was the second consecutive quarterly decline in travel spending overseas but only the fourth drop in four years.
The decrease in spending occurred despite increased travel overseas, which climbed to 2.0 million trips in the third quarter, up 1.3% from the previous quarter.
Inbound spending by travellers from overseas countries edged up 0.2% to $2.2 billion, the third highest level ever recorded.
Overnight travel from overseas countries slipped 1.7% to 1.2 million trips, also one of the highest levels ever.
Definitions, data sources and methods: survey numbers, including related surveys, 3152 and 5005.
The international travel account for 2008 and the fourth quarter of 2008 will be released on February 26, 2009.
For more information, or to enquire about the concepts, methods and data quality of this release, contact Eric Desjardins (613-951-1781; eric.desjardins@statcan.gc.ca) or Client Services, Culture, Tourism and the Centre for Education Statistics (1-800-307-3382; 613-951-9169; fax: 613-951-2909; tourism@statcan.gc.ca).
Table 1
International travel account receipts and payments
