Loonie's surge expected to send Canadians south of the border

TORONTO - Canadian airlines and travel agencies are expecting more bookings to the U.S., the Caribbean and Latin America once their customers realize just how far a loonie at par will take them.

Rob Giguere, president and chief operating officer of charter airline Skyservice, said several destinations are likely to heat up.

"I wouldn't be surprised to see an improvement in travel (from) Canada south to anywhere where U.S. currency is the predominant currency of trade," he said.

"If you go to many of (the Caribbean) islands, the hotels will normally quote in U.S. dollars. Jamaica, for instance, tends to quote always in U.S. dollars. . . . It's kind of bizarre but Cuba (also) quotes in U.S. dollars."

Heather Crosbie, general manager at Travel Cuts, an agency specializing in cheap air fares and budget travel, agrees South and Central America may greet more Canadians visitors if the loonie remains high in the months to come.

Within the U.S., most of the interest is likely to revolve around Hawaii - a destination many Canadians say is attractive but traditionally seen as too expensive due to the lack of all-inclusive packages like the ones offered in the Caribbean.

Las Vegas, Disneyland and Disney World, are also likely to surge, because families planning such trips will find their dollar going a lot further.

"We're certainly seeing a lot more inquiry, people thinking about going," said Allison Eaton, spokeswoman for Flight Centre, an Australian travel retailer with stores across Canada.

"With all of the news that's going on about the rising dollar, they're looking at it and thinking, 'Oh, I'll probably get more bang for my buck if I go to the States in the next little while."'

A recent Investors Group survey found that 44 per cent of Canadians plan to take more vacations outside of Canada because of the increasing value of the Canadian dollar, while 41 per cent said they will be able to stay away for a longer time on vacations.

Air Canada (TSX:AC.A) spokesman Peter Fitzpatrick said the airline had yet to see the effects of parity because airline bookings tend to be done weeks, if not months, in advance.

But, he added, "the dollar has been going up year over year (and) traffic on our trans-border routes to the U.S.-for Jazz and Air Canada combined - is up 1.6 per cent for the year to date at the end of August."

Torontonian Anne Seguin said she had been following the loonie's rise, but didn't expect that strength to translate into more visits to her southern neighbours.

"It hasn't necessarily changed my view about whether I'm going to travel to the U.S. more often," she said.

"There's a lot of other things that go into travelling to the U.S. now that we have to worry about, such as the passport issues and the border crossing issues."

As well, she added, "there's a lot of other places in the world to see."

Copyright The Canadian Press
Published 24 September 07 09:21 by Michael C Murphy

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