International travel account

Canada's international travel deficit jumped to its highest level in 11 years last year despite a rebound in travel to Canada from a SARS-related decline in 2003. The wider deficit was due to record spending by Canadians abroad which more than offset the jump in spending by foreigners in Canada.

The deficit (the difference between spending by Canadians abroad and spending by foreigners in Canada) totalled $4.1 billion in 2004, up $285 million from the previous year. The deficit topped the $4.0 billion level for the first time since 1994.

Canadians spent a record $20.7 billion outside the country in 2004, up 11.3% compared with 2003 and the largest gain since 1990.

On the other hand, spending by foreign travellers in Canada jumped 12.3% to $16.6 billion in 2004, a sharp rebound from the declines caused by the SARS crisis which hammered inbound travel in 2003. The $1.8-billion spike in inbound travel spending was the largest ever.

Travel deficit with the United States highest since 2000

Canada's travel deficit with the United States increased for the second consecutive year in 2004, reaching $1.8 billion, its highest level since 2000. The burgeoning deficit was the result of an upswing in spending by Canadians south of the border, which slightly outpaced the rise in spending by Americans in Canada.

Spending by Canadians in the United States climbed to $11.5 billion in 2004, up 8.1% from 2003. The increase was the first since 2000 and was fuelled by a 9.2% jump in the number of overnight trips by Canadians to the United States.

Americans took more overnight trips to Canada in 2004, and as a result they spent more as travel recovered from a SARS related 12.0% decline in overnight trips in 2003.

More than 15.0 million Americans took overnight trips to Canada, 5.7% more than in 2003. American travellers spent $9.7 billion, up 7.1% from the previous year and the largest increase in spending by US visitors since 1999.

In 2004, the value of the Canadian dollar rose 7.7% against its American counterpart and averaged US 77 cents, its highest level since 1993.

Record travel deficit with overseas countries

The travel deficit with overseas countries rose for the fourth consecutive year, climbing to a record high of $2.4 billion in 2004.

However, the $64-million increase in the deficit was the smallest since 2000 even though both spending by Canadians in overseas countries and spending by overseas residents in Canada jumped considerably.

Overseas, Canadians spent a record high of $9.2 billion in 2004, up 15.4% from the previous high in 2003. It was the largest gain since 1990. A jump in the number of trips contributed to this record-setting spending, as 12.8% more Canadians travelled to overseas destinations than in 2003. Remarkably, overseas spending by Canadians has increased in every year since 1991.

The number of trips and spending by overseas residents rebounded from a SARS-related decline in 2003. Spending by overseas travellers soared 20.6% to an unprecedented $6.8 billion. This increase in spending was in line with the higher number of overseas residents travelling to Canada in 2004. Almost 4.0 million overseas travellers made overnight trips to Canada in 2004, up 20.0% from the previous year.

The Canadian dollar gained in value in 2004 compared with the Japanese yen and Mexican peso. It fell compared with the British pound sterling, the Australian dollar and the euro.

Fourth quarter: Travel deficit again tops billion dollar mark

The international travel deficit reached $1.0 billion during the fourth quarter of 2004, up $210 million from the previous quarter. This marked the fifth time in the last six quarters that the quarterly deficit topped the billion-dollar level.

The jump in the deficit was mostly due to an increase in spending by Canadians abroad, which rose 3.9% to a near-high of $5.2 billion. This was the largest increase in Canadian travel spending since the fourth quarter of 2003.

Foreign travellers spent $4.2 billion in Canada in the fourth quarter of 2004, down 0.4% from the near two-year high recorded between July and September.

Canada's travel deficit with the United States reached $489 million dollars during the fourth quarter, up $212 million from the third. A combination of higher spending by Canadians in the United States and lower spending by Americans in Canada contributed to the first increase in the deficit since the first quarter of 2004.

Canadian spending south of the border rose 5.1% to $2.9 billion, as Canadian overnight travel to the United States climbed 6.0% to 3.6 million trips. Spending by Americans in Canada fell 2.9% to $2.4 billion as 3.7 million overnight travellers crossed the border.

Overnight travel from the United States was down 1.3% compared with the third quarter.

Canada's travel deficit with overseas countries improved slightly during the fourth quarter of 2004. It narrowed from $556 million to $554 million as spending by overseas residents in Canada grew at a faster pace than spending by Canadian residents in overseas countries.

Overseas residents spent $1.8 billion in Canada during the fourth quarter, up 3.2% from the third, the result of a gain in overnight travel. Spending by Canadians in overseas countries rose 2.3% to $2.3 billion, as a record number of Canadians travelled abroad. Almost 1.5 million Canadians visited overseas countries in the fourth quarter of 2004, up 3.2% from the third.

Definitions, data sources and methods: survey numbers, including related surveys, 3152 and 5005.

The international travel account for the first quarter of 2005 will be released on May 27.

For more information, or to inquire about the concepts, methods and data quality of this release, contact Eric Desjardins (613-951-1781; eric.desjardins@statcan.gc.ca) or Client services (1-800-307-3382; 613-951-7608; fax: 613-951-2909; cult.tourstats@statcan.gc.ca), Culture, Tourism and the Centre for Education Statistics.