High dollar to hurt tourism
Posted Apr 21, 2010 8:04 am.
This article is more than 5 years old.
The Canadian dollar is trading at a two-year high.
Rising oil prices and anticipation that the Bank of Canada is going to start boosting it’s key lending rate starting in June are being credited with the loonie’s rise.
Economists believe Canadians are going to make the most of their more valuable dollar by booking out of country vacations.
The Chief Macro Strategist at TD Securities says the high flying loonie could produce a double whammy for the tourism industry.
Eric Lascelles tells 660News Canadians won’t be eyeing ” staycations ” like they did last summer during the recession, while foreigner travellers will cross Canada off their places to visit because we are more expensive right now.
Lascelles says the picture for tourist attractions, hotels and restaurants and bars doesn’t look good especially when you consider those business’s were hoping to recoup some of the losses this suffered last summer during the recession.
Alberta’s Minister of Tourism and Recreation Cindy Ady says she is not overly concerned about the strong dollar.
Ady says Canadians like to stay close to home during the summer taking of good weather.
However she believes if the value of the dollar remains high it could seriously hurt the Canadian and Albertan winter tourism industry.
