Canada’s international travel deficit widened to a record high $3.3 billion in the third quarter from $3.2 billion in the second.
Statistics Canada reports the main contributor was a 0.8 per cent decline in spending by foreign travellers in Canada between the second and third quarters to $3.7 billion, its lowest level in six years. At the same time, Canadians spent just over $7 billion travelling outside the country, a 0.1 per cent increase. Travel spending by foreigners in Canada has fallen by 15.1 per cent since it peaked at $4.4 billion in the fourth quarter of 2004 — the result of a drop in spending by American travellers in Canada.
The travel deficit with the United States declined by $111 million between the second and third quarters to $2.2 billion. This was the result of a 2.9 per cent decline in travel spending by Canadians in the United States to $3.9 billion.
Spending by American travellers in Canada decreased 0.4 per cent to $1.8 billion, the lowest quarterly level in over 12 years. Canada’s travel deficit with overseas countries increased by $152 million to a record high of $1.1 billion in the third quarter. An increase in travel spending overseas and a decrease in spending by travellers from overseas countries in Canada were responsible for the higher deficit.
Canadian travellers spent $3.1 billion in overseas countries, up 4.3 per cent from the previous quarter.