For much of the last decade, the Canadian dollar had slumped relative to the U.S. dollar, making it very expensive for Canadian visitors to the U.S.   In border regions like the Rocky Mountain West, there have been far fewer Canadians traveling across the border to nearby U.S. communities for relaxation, business or shopping.  However, the U.S. dollar has been falling in value against most of the major currencies in the world.  A U.S. dollar translated into $1.60 Canadian just a little over five years ago.  But in September of 2007, the U.S. and Canadian dollars reached parity for the first time in over 30 years.

The U.S. dollar is continuing to decline in value.  While this makes it more expensive for U.S. citizens to travel in other countries including Canada, it is making it much less expensive for Canadians to travel to the U.S.   The chart below shows the total number of Canadian visitors to the U.S. on a monthly basis since 1997.

August is the month of peak travel to the U.S. by Canadians nationwide and nearly 2.26 million Canadians visited the U.S. last August.  This is an increase of over half of million visitors or nearly 30 percent from August of 2002 when the exchange rate for Canadians was much less advantageous.  Canadians are returning to U.S. border communities in increasing numbers and this trend should continue.

- Larry Swanson, Director, O’Connor Center for the Rocky Mountain West