TORONTO, ONTARIO — (Marketwire) — 03/05/12 — More Canadians are planning to travel this year than in 2011 and the majority of trips will be out of country, according to a recent study by BMO Bank of Montreal. March is typically one of the busiest travel months of the year as families and students take advantage of Canada-s annual March break to escape the winter doldrums.
“Over the last two years, the strong Canadian dollar and relatively favourable income growth have made vacation travel outside of Canada much more attractive,” said Sal Guatieri, Senior Economist, BMO Capital Markets. “We expect these conditions to similarly influence Canadians- travel plans in 2012.”
During the third quarter (July 1-September 30) of 2011, spending by Canadians travelling abroad grew 11.24 per cent to $7.3 billion compared to the same quarter in 2010. Of that, Canadian residents spent $4 billion in the United States, up 18 per cent from the third quarter of 2010. During the same period, the number of trips to other countries (excluding the U.S.) increased by 3.3 per cent, while trips to the United States increased by 6.7 per cent.
Domestic travel is expected to increase by a more modest 1.8 per cent in 2012 and generate 97.6 million overnight stays at hotels, inns and bed & breakfast facilities. Tourism spending in Canada is expected to rise by 3.6 per cent to $40.5 billion this year.
“The United States remains the top travel destination outside Canada, with New York, Florida and Washington being the most visited states,” said Su McVey, Vice President, BMO Bank of Montreal. “Our customers have the advantage of being able to make withdrawals at any BMO Harris or M&I ATM in the U.S. for no fee.”
Mexico, the United Kingdom, and France are countries of choice for Canadians travelling to destinations outside of Canada and the United States. The top three travel destinations within Canada are Ontario, Quebec and British Columbia.
The increase in out-of-country travel contributed to an international travel deficit of $15.9 billion for Canada in 2011, an increase of $1.6 billion from 2010. Tourism-related activity accounted for 1.8 per cent of Canada-s GDP in the third quarter of 2011, but with travel within Canada likely to be restrained through 2012, Canada-s travel industries – such as domestic travel services, accommodation, food and entertainment – will be challenged to find innovative ways to keep their operating costs under control.
Statistics Canada 2012-02-27
To ensure Canadians have the payment security and convenience they want when they travel out of country, BMO offers the following tips and advice:
Credit Cards
Debit cards
Foreign exchange notes (cash)
Travellers cheques
BMO recommends a mix: It-s a good idea to have some of the local currency on hand, and to take both your debit card and a credit card with you when you travel so that you have a fall back, should there be a problem with one or the other.
Contacts:
Media Contacts:
Ralph Marranca, Toronto
(416) 867-3996
Carol Greene, Toronto
(416) 867-3996
Sarah Bensadoun, Montreal
(514) 877-8224
Laurie Grant, Vancouver
(604) 665-7596
Web:
Twitter: @BMOmedia