Canada's international travel deficit narrowed to just over $2.9 billion in the first quarter of 2009

Its lowest level since the third quarter of 2007

Statscan - The deficit shrank by $76 million from the fourth quarter of 2008, the result of a 3.5% decrease in spending by Canadian travellers outside the country, which amounted to $6.8 billion. This decline was due to lower spending by Canadians in the United States.

At the same time, spending by foreign travellers in Canada fell 4.3% from the fourth quarter of 2008 to $3.8 billion. This was the lowest level in more than five years.

Travel spending by Americans hits 11-year low

United States travellers spent $1.8 billion in Canada in the first quarter of 2009, down 7.0% from the fourth quarter of 2008 and the lowest level since the third quarter of 1997.

The decrease in spending was partly the result of a 3.4% decline in overnight travel from the United States, which fell to 3.1 million trips. American travellers also made 2.2 million same-day car trips in the first quarter, down 1.8%.

The number of trips from the United States fell at a slower rate than spending. This suggests that while fewer US residents were travelling to Canada, they were also spending less on each trip.

Despite the decrease in inbound travel spending, the travel deficit with the United States fell $243 million to $1.8 billion in the first quarter of 2009, as spending by Canadians south of the border also fell significantly. Canadian residents spent $3.6 billion in the United States, down 9.5% from the fourth quarter of 2008.

Like American travellers in Canada, Canadians spent less on each trip to the United States.

Travel deficit with overseas countries climbs to its highest level ever

Canada's travel deficit with overseas countries increased $168 million to a record high of $1.2 billion in the first quarter of 2009. This was the result of increased travel spending by Canadians in overseas countries and lower spending by travellers from overseas countries in Canada.

Canadians travelling in overseas countries spent $3.2 billion in the first quarter, up 4.1% from the fourth quarter of 2008. This occurred despite a 1.6% drop in overnight travel to overseas countries.

Meanwhile, travellers from overseas countries spent $2.1 billion in Canada in the first quarter, down 1.9%.

Note to readers

This international travel account analysis is based on preliminary quarterly data, seasonally adjusted unless otherwise stated. Amounts are in Canadian dollars and are not adjusted for inflation.

Receipts represent spending by foreigners travelling in Canada, including education spending, medical spending and spending by crew members. Payments represent spending by Canadian residents travelling abroad, including education spending, medical spending and spending by crew members.

Overseas countries are those other than the United States.