Canada’s Weak Dollar a Boon for Tourism

A weak Canadian dollar is actually a good thing for Canada if you are in the tourism market. According to a Reuters report, the country is raking in the dough from visitors flocking to the country and enjoying the good exchange rate. 

Statistics Canada said that total spending by foreign and domestic tourists grew by 2.2 percent from the second quarter to hit more than $20 billion Canadian. It was the largest percentage increase since the second quarter of 1997, according to Reuters. 

Oil prices have driven down the value of the Canadian dollar, which is now about $1.32 to the U.S. dollar. 

However, the value of the dollar isn’t the only thing that is driving visitation. 

Rob Taylor of the Tourism Industry Association of Canada told Reuters that “another reason for Canada's popularity could be Prime Minister Justin Trudeau, a close ally of U.S. President Barack Obama who has traveled the world to promote Canada as a progressive nation.”

It also helps that the country landed at the top of several notable travel lists this year, such as Lonely Planet’s Best in Travel 2017 list as well as The New York Times “52 Places to Go in 2017.” 

READ MORE: A Trip for Every Week of 2017 

Canada has experienced double-digit growth from regions such as Europe and Asia, according to the Reuters report and that has a lot to do with visitors choosing the value of Canada over the U.S. in some respects. 

"The exchange rate has an impact ... one of the prime competitors is the United States, so with the strong U.S. dollar, Canada is looking much more price competitive," Gregory Hermus, associate director of the Canadian Tourism Research Institute tells Reuters. 

Last year may have some competition from 2017 when it comes to record visitor numbers, however. This year is the 150th anniversary of the country, which certainly will drive up tourist numbers and growth could be just as strong — or better.