A new report from TD Bank notes that Canadians spent $22.3 billion in the U.S. That amount has since doubled over the course of the past decade. But with the loonie's value plummeting by nearly 10 per over the past few months, Canadians have less of a reason to travel to the U.S. and spend money that buys less.
TD expects Canadians will visit the States less often this year and in 2015, with 3 million fewer trips expected. This, estimates the bank, will reduce spending by as much as $4.5 billion.
Nearly 80 per cent of the trips Canadians take are day trips with no overnight stayovers. The bank believes that it's this type of excursion that is most likely to dry up over the next two years.
Although it has become somewhat obscured by the gap between the values of the two countries' currencies, experts estimate that Canadian prices are still around 9 per cent higher than they are south of the border, on average. The falling loonie will likely exacerbate that.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate