Home » BLOG » American spending in Canada poised to rise to highest level in more than a decade: TD

American spending in Canada poised to rise to highest level in more than a decade: TD

While the years of parity saw a flood of Canadians taking advantage of cheaper prices in the U.S., the border flow is in the process of heavily reversing.

Americans will expend more money visiting Canada this season than any reason for more than a decade as a low loonie makes heading north more appealing.

Total visits in the U.S. to Canada were already up more than 1.6 million in the first 11 months compared with the year before, said TD Economics inside a new report. The bank expects that trend to carry on this year, with tourists from the United States spending an astonishing $9.6 billion in 2016.

While Americans save money in Canada, however, the reverse is going on down south. The deteriorating exchange rates are likely to keep more Canadians both at home and choosing other holiday destinations, says TD.

“Canadian appointments with the U.S. are required to fall towards the lowest levels because the Great Recession this season, with daily visits prone to see another sharp decline at roughly double the amount rate of overnight visits,” said Derek Burleton, deputy chief economist at TD Economics.

The trend can help narrow the gap between American and Canadian tourist spending. In 2002, Canadians spent the same amount, in aggregate, as Americans did north of the border, says TD. But by 2013, the last time the greenback and loonie were at parity, Canadians spent $17 billion a lot more than Americans did.

Related

About privatefinancetips

x

Check Also

U.S. job growth slows and profits tumble as a strong dollar and cheap oil undercut earnings

WASHINGTON – U.S. economic growth slowed within the fourth quarter, although not as sharply as ...

The REIT sector’s next challenge: CEO succession and board renewal

Getting there C with new chief executives and groups of new directors for that firms ...

Commodities could be headed for ‘buffalo jump’ as investors rush for the exits, Barclays warns

Commodities including oil and copper are in chance of steep declines as recent advances aren’t ...