First quarter 2007 (preliminary)
Key Highlights
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1st quarter 2007 Canadian spending abroad soared by 11.4% over the same period last year.
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Overseas Countries’ record spending was not enough to offset the weakness in US receipts.
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Highest 1st quarter travel deficit ever recorded with both the US and overseas countries.
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Balance of Payments: Canada sets another record
- Canada’s travel deficit: climbed to $4.1 billion during the first quarter of 2007 (see Table 1), an increase of 9.1% from the same quarter in 2006. This constitutes Canada’s highest first quarter deficit on record.
- The travel deficit with US: reached $2.6 billion dollars during the first quarter, up $146 million from the same quarter in 2006. The decrease in spending by Americans in Canada combined with Canadians’ record spending in the US created the highest first quarter travel deficit ever recorded.
Table 1: International Travel Account
Balance of Payments
(Not seasonally adjusted, Preliminary Figures, $ millions) |
| |
1st Quarter 2006 |
1st Quarter 2007 |
Percent Change |
| United States |
| Receipts from Americans travelling in Canada |
1,322 |
1,251 |
-5.4% |
| Payments by Canadians travelling in US |
3,790 |
3,864 |
2.0% |
| Balance with US |
-2,467 |
-2,613 |
5.9% |
| All Other Countries |
| Receipts from Overseas visitors travelling in Canada |
1,634 |
1,772 |
8.4% |
| Payments by Canadians travelling Overseas |
2,970 |
3,308 |
11.4% |
| Balance with Overseas |
-1,336 |
-1,536 |
15.0% |
| Total |
| Total Receipts from all visitors travelling in Canada |
2,956 |
3,023 |
2.3% |
| Total Payments by Canadians travelling outside of Canada |
6,760 |
7,172 |
6.1% |
| Total Balance (travel deficit) |
-3,803 |
-4,149 |
9.1% |
- While the deficit with the US contributed the most to Canada’s travel deficit in the first quarter of 2007 (63.0%), its share size has dropped 1.9% from the same quarter in 2006 (see Chart 1).
Chart 1: Canada’s Travel Deficit with US and Other Countries 1
Receipts (spending by non-residents while traveling in Canada)
- Total receipts from all visitors travelling to Canada reached $3.0 billion in the first quarter of 2007, for an increase of 2.3% over 2006 (see Table 1).
- An increase of 8.4% in overseas receipts helped to offset the decline (-5.4%) in receipts from Americans travelling to Canada.
- Overseas residents spent a record $1.8 billion in Canada in the first quarter, up 8.4% from the same quarter in 2006 – this is in line with the 6.3% increase in overseas travel to Canada.
Payments (spending by Canadians while traveling outside of Canada)
- Canadian spending south of the border rose 2.0% to $3.9 billion, as Canadian overnight travel to the United States increased 4.8% for a total of 3.7 million trips.
- Canadian spending overseas has increased proportionately with their increased travel abroad, both registering 11.4%. However, Canadian spending abroad is growing at a faster pace than spending by overseas residents in Canada, 11.4% and 8.4% respectively, resulting in a record-level first quarter travel deficit with overseas countries of $1.5 billion.
Note to readers:
The International Travel Account (ITA) measures the difference between what Canadians spend abroad and what foreigners spend in Canada. Receipts represent spending by foreigners travelling in Canada, including education spending and medical spending. Payments represent spending by Canadian residents travelling abroad, including education spending and medical spending. The ITA does not include airfares.
The Balance of Payments revise their data once a year for the previous four years’ data, and every quarter for the current year’s data. This analysis is based on preliminary quarterly data that is not seasonally adjusted. Amounts are in Canadian dollars and are not adjusted for inflation.
The next International Travel Account for the second quarter of 2007 will be available on the CTC web site in September 2007. For more information, please contact Murielle Ballantyne at ballantyne.murielle@ctc-cct.ca.
1 Other Countries are those countries other than the US.
