U.S. Border Communities Benefit from Falling Loonie

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U.S. Border Communities Benefit from Falling Loonie

According to a February 8th report by TD Economics, U.S. cross-border spending is at an all-time low. It’s expected that daily visits to the U.S. for shopping by Canadians will be at its lowest levels since the Great Recession in the late 2000s. The same report projects the loonie will average roughly US $0.71 this year, leading many Canadians to rethink their travel plans to the U.S.

This is not all bad news. The report’s co-author Derek Burleton, vice-president and deputy chief economist with TD Bank Group suggests that Americans will likely cross Canadian borders more this year, injecting some tourism dollars into their hungry economies.

Burleton says he believes Canadian border communities that are seen as tourist destinations will more likely benefit from an increase of U.S. visitors. “You can’t paint all border communities with the same brush,” he told the Globe and Mail. “Niagara Falls and Niagara-on-the-Lake, for example, stand to benefit more from U.S. traffic because they have that lure as a tourist destination.”

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