Strong dollar sends big-spending Canadians across border

As the Canadian dollar continues to surge, Canadians are checking into five-star hotels and opting for luxury vacation packages, some U.S. tour operators say.

Seattle-based Darrel Brian, who runs a tour company that offers luxury packages on catamarans, says few cost-conscious Canadians have booked with him in the past. Now, he estimates that Vancouverites account for about 15 per cent of business.

"Our greatest challenge and it's been years and years since we've experienced this is having enough beer on stock for the trip for the Canadian sports fans they do consume more than their American counterparts," Brian said.

He also noted that travellers are spending liberally while on holiday, particularly at the duty free stores.

This week, the loonie has been trading above 92 cents U.S., a 30-year high.

Meg Paynor, public relations manager for the Fairmont Hotel in Seattle, also said she's seen more Canadians reserve rooms at her hotel this spring. She said Canadians have been asking for better hotel suites and have been eating at high-end restaurants.

"They have greater opportunities to go to restaurants, to go shopping," she said.

Canada's travel deficit with the U.S. increases

For Canadian tour operators, the strong dollarwill likely resultin fewer Americans travelling north, a trend that was confirmed by a February Statistics Canada report.

The federal agency said the Canada-U.S. travel deficit the differencebetween spending by Canadiansin the U.S.and spending byAmericans in Canada climbed to $4.5 billion in 2006, the highest point in 13 years.

Overnight trips by U.S. visitors to Canada last year hit their lowest level since 1997, while the Canadian dollar averaged 88.2 US cents at that time, the highest level since the late 1970s.