Rising loonie brings 'pain on top of pain'
By Jason Buckland, Sympatico / MSN Finance
Almost a month ago in this space, we tried to compare Canada’s ’09 tourism industry to that of Fallujah’s after news broke of incoming passport rules that would make it much tougher for Americans to make their way north.
Surely we were crazy to suggest that then, but … now? Maybe the number of guests visiting a war-torn Middle Eastern destination this summer is something Canada can shoot for, after all.
Things were already bad for Canadian tourism earlier this week when, starting June 1st, new passport rules made crossing the U.S. border a bit like tip-toeing through a minefield with Aretha Franklin on your back: tricky.
In order to make it across, you now must have a passport (or a new fancy driver’s license that isn’t out yet) where photo ID, a birth certificate and friendly nod would’ve done the job before.
What’s the big deal, you say? Well, the problem’s not on our side. While many Canadians have passports, only about one in four Americans have such documentation, meaning bye-bye to a major chunk of tourism bucks our economy counts on each year.
Of course, this is a recession -- the problems can’t stop there. As the loonie rises through the roof, it creates a dynamic that the Globe and Mail likes to call “pain on top of pain.” With the border restrictions and, now, the cost of the Canadian dollar compared to its U.S. counterpart, it makes even less sense for Americans to leave the States and bring their money into the Great White North.
And I know what some people are thinking, which is, Fine, good riddance. We don’t need a bunch of Yankees leaving trash and butchering our French street names to enjoy our country this summer. But the fact is, without U.S. tourist influence we lose out on millions of revenue dollars in a time where millions of revenue dollars is actually a big deal.
The issue is already a topic of ire out east, where New Brunswick’s Minister of Tourism and Parks is already anticipating the lost income. He’s begun promoting “staycations” to entice members of the province to remain in New Brunswick this summer to help combat some of the loss from lack of Americans.
Creates a bit of a dilemma for us, doesn’t it? Stay in the area and help pump much-needed money back into the Canadian economy or – with the advantage the loonie now has over the USD – take advantage of a quick trip to the States, where everything from lunch to a shopping spree or trip to the theme park is cheaper by comparison?
Posted by: Greg Nault | Jun 4, 2021 10:12:51 PM
The only people who want the dollar to tank are self serving exporter who cannot compete competitvely so they use the cheap dollar as a crutch. Canadians as a whole benefit with cheaper imports be it food, clothing up to even vehicles not withstanding the fact that we can travel in the US without having to BUY their money at outrageous rates. The business sector and Brian Mulruney free trade traitors in this country and their propaganda machines on a weak dollar have got to be silenced by the Canadian majority who believe - "Stong Dollar -- Strong Country"!
Posted by: chris | Jun 4, 2021 11:14:48 PM
it would be nice to say , as a canadian i'm going to accept higher prices for goods as compared to the u.s. but the taxes have gotten out of control . ontarians are being taxed to death and have to do whatever to survive . if this means saving money by buying in the u.s. , so be it.
Posted by: v b g | Jun 4, 2021 11:17:29 PM
No gratitude here or in the USA for all that Mother Earth provides... Lets go south and have fun.... I do and i get more for my money than i do here in the Great NOT so White NORTH, I love Vegas, it is cheap it is fun and it pays sometimes... much more that the casinos in BC. Win or lose there it is FUN FUN FUN They know how to treat tourists.... just let the average Joe try to go to Whistler resort... totally out of range.... Thats the only great white north up here....
Posted by: cp | Jun 5, 2021 12:27:55 AM
they wiil pay some day our price. for our resorces. no matter what our dollar is. so it should be strong.
Posted by: Mary | Jun 5, 2021 7:01:48 AM
So you like to shop across the border 'cause it's cheaper. Okay, we'll take away your health care, your funding for seniors, eductional funding - all of that. Your Canadian dollars are part of what goes to support those programs. Things are cheaper in the US because they don't have those privileges. South-of-the-border shoppers are trying to have it both ways; and, one day, they're gonna lose those things they assumed would always be there (health care).
It's time Canadians (and everyone else, for that matter) thought beyond their own personal well of greed to the sources of what they now take for granted, before we lose those things. It all comes down to money, money, money and greed, greed, greed, and spoiled selfishness, fed by a consumer culture that was created by big business decades ago to make even more money for a select few. At one time, a person's reputation was sullied if they had a credit line. To say someone "had debts" was a huge insult as it implied they could not manage their affairs enough to afford what they needed, and lacked the maturity to tell the difference between a 'need' and a 'want'. There's been a complete shift away from that toward a culture of debt, and all countries are now paying the price.
And finally, there's the elephant in the room - overpopulation. We cannot, as a species, continue to go on producing humans and consumer goods at the rate we've been going 'cause it's all gonna come to a crashing halt sooner or later. The whole 'economic growth' paradigm is a myth dreamed up when there were less than one billion people on the planet and the earth was believed to be infinite. Well, it's not. We cannot sustain what we now have, let alone what we're continuing to procreate. We need to get rid of the whole idea of economic growth and create a new one of economic sustainability. Combine that with population controls in the form of birth control and education and emancipation of women in the most heavily populated (and patriarchal) societies, and immigration controls on all borders, and this species may just survive.
So let's stopped being spoiled whiners and learn to make do with what we have. The older generation knew how to do that very well. We could learn a thing or two about that from them. Fill the need, not the greed. Keep it Canadian. Bloom where you're planted. Support that which supports you (in this case, Canada). And for pete's sake, grow up!
Posted by: Chad | Jun 5, 2021 7:54:06 AM
To 'Let the Cdn dollar tank' If our dollar rises and our companies are being paid in CDN dollars then they are making more per dollar sale than before... so why can't they drop their prices for exports to accomodate? If they did that then our product wouldn't cost more than it did yet anything Canada or a Canadian buys in CDN dollars would be cheaper...ie planes, medical equipment, drugs, technology, cars etc. Could it be that our companies see a rising dollar, leave the price the same and try to make a quick buck kind of like what the oil companies do with our gas??? Oh and our government too since they get a percentage of the gas price!
As far as passports... the US is a soverign country and can do whatever it feels necessary to protect itslef. Don't forget it was the US that was attacked not us. When you have a Canadian province's immigration department dealing with known terroists countries (Algeria & Morrocco) just because they speak French one should question the US ??????