Loonie’s drop hits consumers, helps B.C. tourism

SFU's Lindsay Meredith sees Canadian dollar sliding to 70 cents

The Canadian dollar has slid more than 15 cents against the U.S. greenback from a year ago.

The loonie’s swoon is prompting more B.C. residents to rethink plans to vacation in the U.S., according to a new poll.

The Insights West online survey found 57 per cent of B.C. respondents said they’re more likely to vacation in this province and 53 per cent said they’ll make fewer trips to the U.S. than usual.

Seventeen per cent said they have already cancelled a planned trip to the U.S.

RELATED:Loonie at lowest point in more than a decade

The loonie sank this week below 77 cents U.S., a new low for the year following a 10-cent plunge last winter as oil prices fell.

Nearly two-thirds of those surveyed said the declining Canadian dollar has either a significant or medium effect on their travel plans

SFU business professor Lindsay Meredith said he’s not surprised by the trend of Canadians staying home and said he expects more Americans will come north as they realize their greenback goes farther here.

“Tourism is the big winner out of this, no question about it,” Meredith said. “The big losers are the Canadian consumers.”

The dollar dove after the Bank of Canada cut its interest rate in response to sagging economic growth, which also prompted a recalculation that the federal government is actually heading for a $1-billion deficit this year, rather than a budget surplus.

Meredith suggested the weaker dollar may aid federal government re-election hopes by propping up eastern Canadian export industries, but will be counterproductive to the economy elsewhere, because average families will have less money to spend as prices of U.S. goods climb.

“It adds more gas to the fire because the imports are much more expensive, so you’ve just shorted the Canadian pay cheque again,” he said.

It will become a “double whammy” when the U.S. federal reserve increases its interest rates, widening the spread against the cost of borrowing in Canada, and giving currency markets another reason to dump the loonie for the greenback.

“That will mean more devastation for the loonie,” Meredith said. “My prediction is we’ll go to 70 cents.”

Just Posted

Korean traditions with a mix of jazz

Black String plays Summer Festival Series at Willoughby Amphitheatre

Luxury car exporter claims Langley developers never paid back $300,000 loan

A lawsuit has been filed against two senior officials of the Newmark Group of Companies

VIDEO: Liberal MP doles out special recognition to Langley area volunteers

Fifteen Langley City and Cloverdale residents were lauded for their community contributions

VIDEO: Annual Langley ride against MS beats fundraising goal

‘Amazing,’ MS Society official said

VIDEO: Fort Langley half marathon and 5K is a pretty, tough course

Don’t let the scenery fool you. It’s a tough slog.

‘Bad choices make good stories’: Margaret Trudeau brings her show to Just for Laughs

Trudeau says over the decades she has been suicidal, manic, depressed

Health Canada revokes licences of B.C.-based pot producer Agrima Botanicals

The agency said it notified the company of a suspension in November due to non-compliance with regulations

Deals, protests during Amazon Prime Day

The Seattle-based e-commerce behemoth says it is offering more than a million deals

VIDEO: Hiker airlifted from Bridal Veil Falls Provincial Park Sunday

Park east of Chilliwack popular with tourist and B.C. residents who walk up to the falls

Canadian national softball team wins second straight Canada Cup

Team Canada defeats Texas-based Scrapyard International in gold-medal game Sunday in Surrey

June sees drop in home sales, prices for real estate across B.C.: report

Sales dropped by 11.8%, while prices fell by 4%

Video captures driver narrowly avoiding hitting Granfondo cyclists in Okanagan

“I’m just glad that everything aligned enough and no one got hurt,” said Shaun Siebert

Teams from India, Croatia, Canada set to wow fireworks fans in Vancouver

An estimated 400,000 people flock to the downtown core each night of the 10 p.m. show

Most Read