OTTAWA— Niagara Falls, one of Canada’s most prized tourism
attractions, is luring fewer American visitors this year because of an
unfavorable exchange rate, a Canadian tourism official said.
The number of US day trippers crossing the border into Canada
to see the spectacular waterfalls has dropped 16 percent this year, Christopher
Jones, vice-president of public affairs for the Tourism Industry Association of
Canada, told a parliamentary finance committee.
Niagara Falls is one of many cases of lost tourism revenue
seen across Canada due to the rising value of its currency against the US
dollar, Jones said.
"We’re hearing similar stories from border towns such as
Windsor (Ontario) and Victoria (British Columbia)," he said.
Lawmakers have requested testimony from dozens of businesses,
industry groups and economists on the impact of the strong Canadian dollar in
order to make recommendations for the government on its next budget.
Canada’s dollar has risen rapidly against the greenback in
recent months. It reached parity with the greenback in September and peaked at a
modern-day high of $1.1039 on Nov. 7 but has depreciated since then to $1.015,
or 98.54 Canadian cents, on Thursday.
As a result, fewer tourist dollars stay in Canada as more
Canadians head south to take advantage of their greater purchasing power while
U.S. tourists see little attraction in coming to Canada.
Americans make up 86 percent of non-resident tourism in
Canada.
The currency appreciation of the past nine months should result in a 16
percent increase in overnight travel by Canadians to the United States,
estimates Paul Darby, deputy chief economist at the Conference Board of Canada.
—Reuters
