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Cross-border spending fuels Canadian travel deficit

A hike in Canadians’ cross-border spending boosted Canada’s international travel deficit 3.1% to $3.9 billion in 2011’s second quarter, according to Statistics Canada figures released this morning. Canadians’ total spending abroad rose 4.4% to $8.

A hike in Canadians’ cross-border spending boosted Canada’s international travel deficit 3.1% to $3.9 billion in 2011’s second quarter, according to Statistics Canada figures released this morning.

Canadians’ total spending abroad rose 4.4% to $8.0 billion, while spending by travelers from abroad in Canada rose 5.7% to $4.1 billion.

Canadians’ trips to the U.S increased 4.0% in the quarter, and Canadians’ cross-border spending drove up Canada’s deficit with the U.S. to $3.0 billion in the second quarter.

During the quarter, Canadians spent $4.8 billion in the U.S., a 4.0% rise from the first quarter. Americans’ spending in Canada also rose in the quarter, climbing 5.7% to $1.8 billion.

Canadian spending in countries outside the U.S. rose 5.0% during the quarter to a new high of $3.2 billion. During the same period, Canadians’ trips to those countries increased 4.4% to the highest level since record keeping began in 1972.

Meanwhile, travellers from countries outside the U.S. spent $2.3 billion in Canada in the second quarter; that 5.7% increase was the strongest since 2007’s fourth quarter.

In the second quarter, the Canadian dollar rose 1.8% to an average quarterly value of US$1.03.

Jenny Wagler

[email protected]

Twitter: JennyWagler_BIV