Stronger Loonie Makes For Greater Travel
Here’s some news that is sure to make Synergy’s Vice President of Marketing, John Meloche really happy. Today The Toronto Star‘s business reporter, Madhavi Acharya-Tom Yew reports that the rising value of the loonie is making it easier for more Canadians to travel. John, who just loves vacationing in such spots as Jamaica and the Dominican Republic, is sure to take advantage of this tidbit of information.
We’re sure that many other Canadians will do the same. With the Canadian dollar becoming stronger and stronger, the ability for Canucks to go on awesome vacations is greater and greater. Not only that, but the type of vacation that one takes can become that much more luxurious.
According to managing director at the travel website Expedia.ca, Sean Shannon: “We’ve had really good numbers for trips to Europe. It has been steady, strong growth to a wide variety of markets across Europe. There are more four-star hotels being booked than three-star hotels. It’s a bit like winning the lottery. People feel wealthier so they want to treat themselves.”
Acharya-Tom Yew notes that the Canadian dollar is not only gaining ground on its American counterpart but over the past two years it has gone up by a record 50 per cent on the British pound and 14 per cent on the euro. Interestingly, while the value of the loonie continues to rise, the European currencies continue to suffer at the hands of growing debt, among other fiscal concerns.
Further proof that Canada’s economic recovery is blossoming ever so nicely lies in the increasing demand for Canadian commodities from such countries as India and China. Economists everywhere are remarking on Canada’s astounding ability to rebound from the recession.
Says Benjamin Tal, an economist at CIBC World Markets: “The fact that the Canadian dollar was able to gain ground in an environment of a rising American dollar, that’s impressive. It suggests there is much more to the Canadian dollar than just weakness elsewhere.”
Acharya-Tom Yew mentions that one of the the nation’s most impressive feats is the fact that Canadian banks did not require rescue packages after the “global credit meltdown”. The Canadian economy continues to emerge from the recession at a much more rapid pace than the United States. As well, Canada’s housing market is stronger and the jobless rate is lower than the U.S.
The bottom line for vacation seekers, of course, is that the Canadian dollar is now worth more abroad. The higher value of the loonie will allow travellers to spend less on trips throughout Europe and the U.K., for example. As Acharya-Tom Yew writes, the Canadian dollar matched against the euro, is now at its highest level since January 2006. The euro’s value currently sits at $1.40 Canadian, when it was $1.57 last summer.
That being said, it is likely that John won’t be the only Synergy staff member going on a trip this summer. And he most certainly won’t be the only Canadian.