Stronger Canadian Dollar Puts Dent in U.S. Arrivals: Canada’s inbound tourism experienced a year-on-year decline in July for overall arrivals as some of its targeted source markets under performed, but the continued over-the-top increases in arrivals from Mexico (and in July, from Brazil) suggest that industry is still on course to match, or possibly exceed, last year’s total—which was a near record—and experience its best year ever, according to the latest monthly profile for July just released by Destination Canada.
From Destination Canada, here is the quick take:
And here is a slightly longer take:
- With the U.S. dollar depreciating 9.8 percent against the Canadian loonie in July 2017 relative to June 2017 (this was the fastest recorded monthly drop since 2000), arrivals from the U.S. fell 1.2 percent in July 2017 as fewer arrivals by automobile (down 3.6 percent) overshadowed gains in air arrivals (+1.7 percent) and other modes of transportation. Year-to-date, overnight arrivals from the U.S. were up 1.9 percent due to gains in air arrivals (up 5.4 percent) and other modes of transportation (+6 percent) more than offsetting a sag in auto arrivals (down 0.8 percent).
- A strong performance in overnight arrivals from Destination Canada’s eleven international markets in July 2016 of last year (+12.8 percent) cast a shadow over what appeared to be subdued results in July 2017 of this year (down one half of one percent over July 2016) and served to hide robust growth from most of its 11 key markets (up an annual average of 5.8 percent since 2015).
- Year-to-date (through July 2017) arrivals from Destination Canada’s 10 overseas markets were up 12.0 percent over July 2016, with Destination Canada’s Latin America region leading the way (up 43.5 percent), followed by Asia-Pacific (up 14 percent) and Europe (up 2.8 percent). Arrivals from the U.S. stood at +1.9 percent year-over-year.
- Destination Canada’s two Latin American markets continued to attain new peaks in July 2017 as outstanding growth from Mexico (up 38.8 percent) and Brazil (up 25.1 percent) enabled both markets to reach their highest arrivals numbers in any single recorded month.
- Year-to-date, overnight arrivals from Destination Canada’s Asia-Pacific region were up 14 percent, with double-digit growth from each market except Japan (+5.5 percent).
- Year-to-date arrivals from Destination Canada’s European region remain positive (up 2.8 percent).
- While Destination Canada does not speculate on the unusually large increase, year-on-year, in the number of Mexican arrivals, the consensus among those who follow shifts in international travel to Canada is that a strong dislike of U.S. President Donald Trump (national surveys show that his approval ratings in Mexico are consistently in single-digit percentages) is causing many Mexicans to forego a trip to the U.S. in favor of a holiday in Canada. Here is how 2017 has been fairing on a monthly basis versus 2016, which itself was a record year.
