2003

Canada's Travel account measures the difference between earnings from visitors traveling to Canada and spending by Canadian residents traveling abroad.

Travel deficit highest in more than nine years

According to the international travel account preliminary estimates released by Statistics Canada today, Canada's international travel deficit in the third quarter of 2003 reached its highest level in more than nine years. 

The following provides a brief summary of the third quarter preliminary results on a seasonally adjusted basis (change over the previous quarter)

• On a seasonally adjusted basis, the total travel deficit increased by $168 million (up 16.8%) in the third quarter 2003 over the previous quarter, reaching an estimated $1.2 billion. This was mainly due to a combination of factors such SARS crisis earlier in the year and the appreciation of the Canadian dollar against its American counterpart. In the third quarter, Canadian residents spent $4.8 billion outside the country (up 7.4% from the previous quarter), while foreign visitors spent in the same quarter $3.6 billion (up 4.7%).

• The travel deficit with the United States decreased slightly by $18 million (down 3.7%). Americans spent $2.2 billion in Canada in the third quarter, a 4.3% increase over the previous quarter. On the other hand, Canadians spent in the United States approximately $2.7 billion, up only 2.9% from the previous quarter. From the second to the third quarter, the value of the Canadian dollar rose 1.3% on average against the American dollar. However, it is worth mentioning that, in the second quarter, the value of the Canadian dollar rose on average by 8% against the American dollar.

• The travel deficit with overseas countries increased sharply by $185 million (up 35.7%) compared to the previous quarter. This is due to the fact that overseas visitors spent less in Canada, while Canadians spent more overseas. Overseas visitors spent $1.4 billion in Canada, up 5.3% from the previous quarter. Canadians spent $2.1 billion on overseas trips, up 14.0% from the previous quarter. This could be explained by the fact that the Canadian dollar appreciated its value against several overseas currencies (Euro, +2.2%; the British pound, +1.8%; and the Japanese yen, +0.2%). It is worth mentioning as above that, in the previous quarter, the Canadian dollar increased its value against the same overseas currencies by 2.1% against the Euro, 7% against the British pound, and respectively, 8% against the Japanese yen.

On a seasonally unadjusted basis (year to year comparison), the total travel deficit reached $1.2 billion, a decrease of 47.4% over the same quarter of 2002.