International travel account

Canada's international travel deficit - the difference between what Canadians spend abroad and what foreigners spend in Canada - increased significantly in 2002. It rose from $1.3 billion in 2001 to an estimated $1.7 billion in 2002.

This result was due to the combined effects of a decline in spending by non-resident travellers in Canada and a slight increase in travel spending abroad by Canadians. Foreign travellers injected $16.5 billion in the Canadian economy in 2002, 1.2% less than in 2001. Their number of same-day and overnight trips fell 4.8% to 44.9 million. Meanwhile, despite making 9.2% fewer trips to other countries, Canadians spent $18.1 billion on those trips, up 0.7% from 2001 and second only to the record high of $18.3 billion set in 2000.

Annual travel deficit with the United States at its lowest level since 1986

Canada's travel deficit with the United States dropped sharply in 2002, as American visitors spent more in Canada and Canadian travellers decreased their spending south of the border.

Americans spent a record $10.5 billion in Canada in 2002, up 4.6% from the previous high of $10.0 billion in 2001. At the same time, Canadians spent over $10.7 billion in the United States, down 2.5% from 2001.

As a result, the travel deficit with the United States plummeted from $1,007 million in 2001 to an estimated $271 million in 2002, the lowest annual deficit since 1986, the year of the world's fair in Vancouver. The 1.4% depreciation of the Canadian dollar against its American counterpart was one factor that may have contributed to this decline.

Americans made 40.9 million trips to Canada in 2002, down 4.6% from 2001. However, this decrease was due mainly to a 9.9% drop in the number of same-day car trips to this side of the border. American overnight travel to Canada increased 4.0% to 16.2 million trips in 2002. Canadians took 34.6 million trips to the United States in 2002, 9.9% less than they did in 2001.

Annual travel deficit with overseas countries jumps to a new high

Spending by overseas visitors to Canada decreased 10.0% to $6.0 billion in 2002, the first annual decline since 1983. These visitors took 4.0 million trips to this country, down 6.0% from 2001.

Canadian residents, for their part, made 4.7 million trips to overseas destinations in 2002, down 3.1% from 2001. Despite this decrease, however, their spending on those trips rose 5.8% to a record $7.4 billion.

Consequently, Canada's travel deficit with countries other than the United States jumped from $309 million in 2001 to an estimated $1,384 million in 2002, the highest level ever recorded and the first time since 1987 that the deficit with overseas countries exceeded the deficit with the United States. The deficit with overseas countries accounted for 84% of Canada's overall travel deficit in 2002, compared with 23% in 2001.

In 2002, the value of the Canadian dollar fell against several major foreign currencies, including a 6.5% depreciation against the euro.

Travel deficit declined in the fourth quarter

Canada's travel deficit with the rest of the world decreased to an estimated $317 million in the fourth quarter, after hitting $439 million in the third quarter.

This result came mostly from an increase in spending by non-resident travellers in Canada, which was about three times higher than the growth recorded in travel spending by Canadians outside the country. Foreign residents spent less than $4.3 billion in Canada in the fourth quarter, 4.6% more than in the third quarter. They took 11.6 million trips to this country, up 5.0% from the third quarter. Meanwhile, Canadian travellers spent $4.6 billion and made 10.1 million trips outside the country, up 1.4% and 2.1%, respectively, from the third quarter.

Travel account surplus with the United States in the fourth quarter

Canada's travel account with the United States posted a surplus in the fourth quarter of 2002, after recording a deficit of $66 million in the third quarter. In the fourth quarter, American travellers spent $60 million more in Canada than Canadians did south of the border.

American spending in Canada rose to a record $2.7 billion in the fourth quarter, 4.6% more than in the third quarter. This was the result of a 4.7% increase in travel to this side of the border. During the same period, Canadians made 10.5 million trips to the United States, up 2.0% from the previous quarter. However, their spending on those trips remained practically unchanged (-0.2%), at just under $2.7 billion.

Travel deficit with overseas countries remained unchanged in the fourth quarter

Overseas residents, who took 1.1 million trips (+7.9%) to Canada in the fourth quarter, spent $1.5 billion in Canadian destinations, up 4.6% from the third quarter. However, this increase was offset by a 3.8% increase in overseas spending by Canadians to $1.9 billion. These expenses were made on more than 1.2 million trips, a 2.8% increase from the third quarter. As a result, the travel deficit between Canada and countries other than the United States was $377 million, practically unchanged from the third quarter.

Information on methods and data quality available in the Integrated Meta Data Base: survey numbers, including related surveys, 3152 and 5005.

For more information, or to inquire about the concepts, methods and data quality of this release, contact Client services (1-800-307-3382; 613-951-7608; fax: 613-951-2909; cult.tourstats@statcan.gc.ca) or Jocelyn Lapierre (613-951-3720), Culture, Tourism and the Centre for Education Statistics.