As loonie sinks, travellers think twice about U.S.
Europe has become more affordable
The Canadian dollar’s falling fortunes have, in part, sent Dan McAvoy and his wife Heather on a pilgrimage to Europe.
The Saskatoon couple will take part in the 800-kilometre Camino walk in northern Spain this fall. It’s the first time they’ve decided to take a journey like this one. In February, they’ll rent a home in Lucca, Italy. Had the dollar been faring better, they may have considered a trip to Palm Springs, Florida.
Last year, the McAvoys flew to France, and ended up in Brazil after a cruise. They then spent a month in Florida — which was more expensive than the cruise and Brazil, McAvoy said.
“And the dollar has dropped even further, so we’ve decided we’d rather go back to Europe,” he said. “We lived there for four years, so it’s like going home a bit.”
The Canadian dollar has been hovering around the 76-cent U.S. mark, and on Tuesday, it fell to an 11-year low before recovering slightly. The loonie’s decline has been strongly influenced by the falling price of oil — the price of a barrel of crude has been just about halved in the past year.
McAvoy noted the dollar has fallen about 30 per cent against the U.S. dollar, but the fall hasn’t been nearly as severe against the euro. The currency exchange is affecting the cost of flights and cruises priced in U.S. dollars, he added.
Dean Smith, director of WestWorld Tours, based in Regina, said the company is not experiencing a decline in bookings to U.S. destinations — but they aren’t increasing either. If the dollar were closer to par with the U.S. dollar, bookings may have been up, he said.
However, the travel agency is seeing more demand for trips within Canada — including to the east coast.
“We do quite a few Canadian tours to B.C., Newfoundland and the Maritimes, and we broke records on those sales this year, so obviously some people are looking to stay in Canada,” he said.
With the Canadian dollar up against the euro and the Australian dollar, he said the company is seeing “significant” sales increases to those destinations, too.
At Saskatoon-based Vacations Away, staff are seeing a “small” decline in cross-border travel.
“I have had a few clients who were considering trips to the U.S., but have decided not to go at the moment, partly due to the exchange rates. But overall, it has not been a significant drop,” manager Michelle Loran said in an email.
A few people have changed their minds about trips to destinations like Las Vegas given the current dollar, she said.
“It was kind of a whim, it wasn’t planned out, and that’s where they wanted to go, they thought maybe for a week they’d get away. They decided not to because of the dollar.”
She said staff aren’t seeing any notable change in the number of “staycations” — vacations at home — as a result of the dollar. Travel within Canada has remained relatively stable. And for the McAvoys, if the dollar stays where it is — or falls even further — they said they’d do the same as this year and head to Europe.
“The United States is going to take a hit. I think there’s going to be a lot less tourists going there, and ... going to other places,” Dan McAvoy said.
Loonie’s slide affecting tourist draws at home
The widening gap between the value of the Canadian and U.S. dollars has become a cause for concern for the Saskatoon Jazz Festival.
The exchange rate took a significant chunk out of the event’s budget this year. The festival pays its American acts in their home currency — and lately, that’s come at a significant cost.
Organizers purchase U.S. dollars when it’s the most advantageous, so they can secure American artists. In past years, when the dollar was trading closer to par, those acts were more affordable for the festival.
Artistic director Kevin Tobin said with the dollar where it is, the festival will need to be “more selective” about who it brings in.