Canadian retailers and tourism operators seem to be reaping the benefits of a low loonie, according to two new reports that suggest Americans are flocking north of the border to Canada.
A new report from BMO Nesbitt Burns released Tuesday states the number of American visits to Canada have jumped 20 per cent over the last two years, topping the 2-million mark for the first time in eight years.
Meanwhile, the number of Canadians taking trips south of the border has plunged by 26 per cent over the same time.
BMO senior economist Sal Guatieri said in the report that "travel flows between the two countries should remain favourable for Canada," as long as the loonie remains below 85 cents US.
As of late Tuesday morning the loonie was valued at 79.19 cents US.
A new National Bank report also showed an 18.1 per cent year-over-year increase in U.S. same-day travellers to Canada this past February. That same month also saw a 4.3 per cent year-over-year increase in Canadian retail sales.
National Bank senior economist Krishen Rangasamy said in the April 22 report that "the weak loonie has not only forced many Canadian cross-border shoppers to do their shopping at home, but it has also encouraged Americans to come this side of the border."
The report showed that the number of same-day American travellers to Canada is growing at the fastest pace in six years.
"Interestingly, New Brunswick tops the nation in terms of year-on-year sales growth, despite weak employment in that province," Rangasamy notes.
The report points out that New Brunswick gets the largest number of same-day U.S. travellers as a share of its population than any other province.
"Which explains why its retailers tend to benefit disproportionately from the loonie’s depreciation," Rangasamy writes.
