First quarter 2009 Saw Year to Year Decline

Statscan - Spending on overnight trips to Canada by foreign residents reached $1.7 billion in the first quarter of 2009, down 8.5% compared with the same quarter a year earlier.

Spending by American (-8.6%) and overseas residents (-8.5%) declined similarly. It was the second consecutive quarter that both US residents and residents of other countries spent less in Canada.

Canadian residents spent less on overnight trips to the United States in the first quarter of 2009. However, spending by Canadians in countries other than the United States was on the rise, as a result of increases in travel to sunny destinations.

Americans spend less in Canada

Spending by US travellers on overnight trips to Canada showed different trends depending on the purpose of the trip. Spending on both business (-10.6%) and pleasure (-11.2%) trips declined notably. However, those who came to Canada to visit friends or relatives increased their spending by 3.0%.

A 13.1% decline in spending by American residents who flew to Canada was much greater than the 0.1% decline observed for those driving to Canada. The number of overnight trips by air decreased 10.2%, while automobile trips were down 4.6%.

Among the top 10 states of origin, 9 recorded declines in overnight trips to Canada in the first quarter. Travel increased only from New York (+3.2%). The largest declines occurred in travel from California (-15.9%) and Minnesota (-12.1%).

Overseas pleasure travel drops sharply

The decline in spending on overnight trips in Canada by overseas travellers was largely attributable to a decrease in spending during pleasure trips. The number of pleasure trips fell by 27.6% while spending during these trips was down 16.3% from the first quarter of 2008.

At the same time, overseas residents visiting friends and relatives spent 18.8% less and made 6.2% fewer trips. Spending associated with business travel slipped 0.2% while the number of business trips was unchanged.

Among the top 10 overseas markets, 7 recorded declines in the number of overnight trips to Canada. The largest declines occurred in travel from Japan (-23.3%), the United Kingdom (-23.1%), Mexico (-22.3%) and South Korea (-20.6%).

Notable drop in spending in the United States

Canadian residents spent just under $3.5 billion during overnight trips in the United States in the first quarter of 2009, down 8.0% from the same quarter a year earlier.

Spending on business trips declined 11.9%, while expenditures on trips to visit friends and relatives fell 9.0%. In the first quarter, 6 out of every 10 trips were for pleasure and spending during these trips declined by 5.9%.

The number of overnight auto trips declined 13.7%, while travel by air was down 8.7%.

While Florida remained the most visited state for overnight visits (at 1.1 million in the first quarter), like most states, this represented a decline from the same quarter of the previous year. Visits by Canadian residents increased for 2 of the top 10 most visited states in the first quarter: Nevada (+23.5%) and Arizona (+11.2%).

Spending in overseas countries up slightly

Canadians residents spent roughly the same amount on overnight trips to countries other than the United States as they did in the United States in the first quarter of 2009. Total expenditures were $3.5 billion, up 0.6% from the same quarter a year earlier.

In the first quarter, Canadian residents made 2.9 million overnight trips to countries other than the United States, up 5.1%.

Mexico, Cuba and the Dominican Republic continued to be the most popular countries visited in the first quarter by far. While these three countries all had notable increases in 2009, other countries such as the United Kingdom and France received significantly fewer visitors from Canada.