Low Canadian dollar a 'double-edged sword' as more Americans travel north: economist
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A Calgary economist says the low Canadian dollar is a mixed blessing, with data showing that more Americans are travelling north to make the most of their spending.
A Calgary economist says the low Canadian dollar is a mixed blessing, with data showing that more Americans are travelling north to make the most of their spending.
U.S. residents took 1.8 million trips to Canada in October, according to Statistics Canada, which is up 8.2 per cent from the same time last year but still shy of numbers seen before the pandemic.
The number of U.S. resident and overseas travellers hit 2,252,283 in October, up around five per cent since the year before, but still representing 93 per cent of the number seen in October 2019.
The Loonie has been in decline since October, falling to its lowest level since March 2020 at USD $0.69.
“The Canadian dollar isn’t worth as much as it was just a few weeks ago, and there are lots of explanations for this,” said Keith Brownsey, an economist at Mount Royal University.
“The American economy is just roaring along right now, the Canadian economy is just not in such a good position.”
Brownsey called the conditions around the low Canadian dollar a “double-edged sword,” as it’s beneficial for the local tourism industry but will ultimately cost Canadians.
