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As the Canadian dollar dips to levels not seen since May 2020, travel agents say Canadians are reconsidering their travel plans.
According to Forex, the loonie was at 71.23 cents U.S. early Dec. 2, after dipping below 71 cents U.S. the week prior.
Canadians planning to travel to the U.S. might feel the pinch. For example, if you budget $200 CAD per night, that equates to only $140 US — which could mean the difference between a three-star hotel and four-star hotel.
“The weaker Canadian dollar may lead to a shift in travel habits rather than a complete halt in travel,” Markham-based travel agent Sandra Clarke told On The Record.
“Cross-border trips to the U.S. could decline as the unfavorable exchange rate increases costs, prompting travelers to adjust budgets or shorten stays,” said Clarke.
Canadians travelling to countries that use U.S. currency, such as Ecuador, are also impacted.
“I’m about to see my family, so I have to convert all my Canadian dollars to US dollars,” said Toronto resident Henrique Faustino, who is visiting his parents in Ecuador this month.
“When I’m there, I have to pay more for groceries and that hurts because I’m a student and I don’t make that much money in Canada to begin with,” he said.
“I’m taking a hit to visit my loved ones for the holidays.”
However, according to CMC Markets, the Canadian dollar is still the 11th strongest global currency — giving Canadians plenty of options for travelling.
“Many Canadians may opt for domestic vacations or explore all-inclusive packages to destinations like Mexico and the Caribbean, where their money goes further,” Clarke said.
According to BNN Bloomberg, a lower Canadian dollar can boost industries like tourism, where a weaker dollar brings in visitors from abroad because their money goes further.
“There are lots of Americans who will now look at Banff or Mont Tremblant and will think it’s the perfect time to travel because their money will give them more experiences than they had before,” Toronto-based travel agent Beth Mckinley told OTR.
“These destinations will become cheaper and more attractive to Americans,” said Mckinley. “We’ll have to see how that factors into our economy and where our dollar’s going.”
Reporter for On The Record.
