Due to an increasingly high Canadian dollar, there has been a steady travel defecit in Canada. Travelers are seeking out destinations where their own dollar goes further. Conversely, Canada’s domestic travel remains strong, due to solid growth in disposable income.The Canadian airline industry is benefitting from the high dollar, as it brings increased travel to international destinations. Strong growth in incomes and corporate profits is boosting spending on pleasure and business travel as well.
As previously mentioned, Canada is an expensive destination for many, and this has been reflected in earnings for the accommodation sector. Conversely, strong hotel room rates have attracted hotel investors.
Currently Canadian Tourism is quite elastic. With it’s high dollar there are many other more affordable substitutes for vacations and holidays.
From ‘Canada’s Tourism Industry.:
http://www.corporate.canada.travel/docs/research_and_statistics/trends_and_outlook/industrial_outlook/Industrial_Outlook_Spring_2008_eng.pdf
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