The Canadians are back: State feels benefits of strong Loonie

[Bulldog]

The Canadians are back: State feels benefits of strong Loonie
By PETER JOHNSON
Tribune Staff Writer

The Canadian Loonie flapped to a high of 95.58 U.S. cents in early July, its peak level in the last 30 years — causing an influx of shoppers from the north, according to Montana retailers and shop owners.

Tavern owners in Whitefish, western wear merchants in Havre and hotel managers and merchants in Great Falls are seeing an increase in Canadian visitors, which started last fall as their purchasing power climbed.

 
I'm seeing tons more Canadian shoppers now, maybe half my customers on weekends," said Alison Fried, owner of Dragonfly Dry Goods in Great Falls. "In past years, I might have seen one or two Canadians on a Saturday, and they'd mostly be browsing. There are more of them now and they're definitely interested in buying."

A rising Canadian dollar, called the Loonie for the waterfowl depicted on the bronze-coated coin, means Canadian travelers pay less for everything from accommodations to dining, which encourages longer U.S. vacations.
Travel Montana, the state's tourism promotion arm, directed about a quarter of a $300,000 ad campaign aimed at visitors within a day's drive of Montana toward Canadians this year. So far, there have been 33 percent more travel inquiries from Canadians during the first six months of this year compared with the same time period in 2006, said spokeswoman Sarah Lawlor.

Canadian vacationers know it's far easier paying close to par for a $100 Montana hotel room now rather than, say, $160 five years ago during the exchange rate's low point. That's especially so when the less-favorable exchange rate prevailing for most of the 1990s also meant digging deeper into wallets for meals, clothes, ski tickets and tanks of gasoline for Canadians.

"Since last fall, when the Canadian dollar began rising, we've seen a lot more Canadians on our ski hill, in our stores and on Central Avenue," said Jan Metzmaker, director of the Whitefish Convention and Visitor Bureau. "And Canadian schools go through late June, so they're just getting into their vacation season. We'll see a lot more wild rose Alberta license plates soon."

U.S. officials at the Port of Sweet Grass report that 4 percent more vehicles crossed the border during the Canada Day holiday July 1, than did so last year. June 29 was the busiest day, with 2,401 people crossing from Alberta into Montana.

The 2002 exchange rate of 62 cents meant Canadian travelers had to spend about one-third more while staying here, Metzmaker said, calling it "a huge deterrent."

The Havre Chamber of Commerce promoted area businesses and tourist attractions in three full-page ads in the Medicine Hat News this spring, inviting Canadians to travel 110 miles south to spend their three-day, mid-May Victorian Day holiday in the States.

At least 60 families booking lodging rooms in Havre that weekend mentioned they'd seen the ads, said Debbie Vandeberg, executive director of the Havre Chamber.

"Havre has always been a destination point for Canadians looking for a change in scenery and now it's even more affordable," she said.

"We've definitely had a lot of Canadians so far this spring and summer, with their stronger dollar buying more," said Tiffany Olsen, manager of Havre's AmericInn hotel. Several families from Quebec or other eastern provinces who visit the Canadian Rockies detour into Havre and northern Montana to shop for a few days before heading back, she said.

Metzmaker recalled the heyday in the late 1980s and early '90s when as many as 30 busloads of Canadians hit the Big Mountain ski slopes every weekend, with the visitors enjoying dining and partying in such Whitefish night spots as the Great Northern Bar and Grill and the Bulldog Saloon.

"Canadians have told me in recent years at Calgary ski shows that they fondly remembered the great Whitefish ski hill, restaurants, nightlife and good value from the 1980s," Metzmaker said. "Well, we took out ads in Lethbridge and Calgary papers a few months ago inviting them back."

Doug Rommereim, veteran owner of the Great Northern Bar, said he'd like to see another pitch toward Canadian visitors in the late summer or early fall to boost Whitefish's shoulder season. The Whitefish, Glacier National Park and Flathead area is already pretty saturated in July and August, he said.

Trek Stephens, the third generation in his family to operate the Toggery clothing store in downtown Whitefish, said Canadians are again shopping — and buying. They also look for bargains.

For instance, Keen sandals sell for about $100 in Montana, but are priced at $140 in Canada.

Canadians keep tabs on such prices and return to the States to shop when it's a good deal, Stephens said.

He also said Canadians seem to have enough confidence in the long-term strength of their dollar that they're buying property in the Whitefish area.

"Our neighbors to the north are certainly familiar with Montana, given the 500-mile border we share," said Travel Montana's Lawlor. "The favorable exchange rate gives them a very good reason to come back and spend extended time exploring more areas of Montana."

Previous surveys showed that Canadian visitors spent just two days in Montana, either on short stays or pass-throughs from the Southwest, Lawlor said. Montana officials are hoping the better exchange rate will lead to Canadians staying here for closer to the six-day average of other out-of-state visitors.

"Gasoline prices this summer travel season in Alberta are still close to 50 cents more per gallon than in Montana," Lawlor said. "This gives Canadians yet another reason to cross the border to recreate."

The flip side of the exchange rate change means that Montanans and other U.S. travelers are not getting such a good break when they travel north. That $100 Calgary hotel room that might have cost Montanans $65 a few years ago is closer to $95 now.

The Canadian government already is reporting a drop-off in U.S. visitors.

"The trend for Americans visiting Canada nationally has been in a free fall, although Alberta is bucking the trend a bit," said Don Boynton, communications director for Travel Alberta in Calgary.

Statistics Canada reported that the number of Americans visiting Canada by automobile fell 9.6 percent during the first four months of 2007 compared to the same time period last year, while Alberta's numbers fell just 1.6 percent.

Alberta is getting more direct plane connections from larger U.S. cities, which also helps, Boynton said.

In addition, Alberta ski resorts had a great snow season while others around the world suffered.

Finally, Boynton said, Alberta is the only Canadian province with no sales tax. He noted that allows the shopping dollar to go further, just as it does in Montana, one of only four states without a general sales tax.

However, the Canadian government charges a 6 percent goods and services tax on most purchases nationwide.

Canadian travel promoters say the less-favorable exchange rate for U.S. travelers, though still slightly better than par, has set back their longtime marketing theme that Americans can save big time when they visit Canada.

"We've worked so long to emphasize the benefits of the dollar difference to our American customers that the change in rates will set back our marketing effort by maybe five or six years," said Melody Garner-Sparrow, president of the Lethbridge Lodging Association.

The group is not marketing as heavily in Montana and other U.S. markets this summer, she said, "because it's a harder sell now that Americans are no longer getting such a break."

Also contributing to the downturn in travel are higher gas prices and confusion by Americans over what type of passport, if any, they need to travel across the border, she said.

"We're definitely seeing our American clientele drop substantially so far and it will affect us even more this summer," said Garner-Sparrow, who is general manager of Ramada Hotel and Suites in Lethbridge.

"We will still see our regulars, Montanans who like to bring their families up two or three times a year to enjoy waterslides and meals for a weekend," she added. "But we do not expect to see nearly as many regional travelers coming to Alberta for the first time to check out what we have, knowing they could get a break on their spending."

Great Falls resident Connie Heiman, her family and girlfriends are among the regulars who won't alter their plans much.

"I've certainly noticed the rates Americans pay have climbed the last six months, but it won't stop us," she said. "The particular exchange rate, whether good or bad, has neither prompted me to go more often or made me hesitate."

Heiman said she's been traveling to Lethbridge, and occasionally Calgary, a few times a year for more than 20 years.

"We used to take the kids golfing or to a waterslide, and I still enjoy going to Canada, where people are so polite and friendly," she said. "It's an easy way to get out of town, all Interstate highway and no mountain passes, and they've got some really good Chinese restaurants, too."

Mary Wingerter said she and her husband Jim have been traveling to Canada for about a dozen years to watch their sons' Little League and American Legion teams play baseball.

"We always thought it was a fun place to visit and we could stay in a motel room for a little less than when the teams traveled to Washington state," she said.

But this year, they saw the exchange rate jump sizably on consecutive weekends in Medicine Hat, adding about $3 to the family's breakfast bill at McDonald's and hiking the motel bill from $60 a night to $75 a night.

The Wingerters will keep going where the baseball schedule dictates, Mary said, but will probably cut back on extra spending if the exchange rate continues to even out, especially if they have to buy passports for their kids. Passports are currently required for air travelers and are scheduled to be required fro drivers in 2008.

Kelli Cook, area manager for Tharoldson Lodging of Great Falls, is experiencing both sides of the changing exchange rate.

On the one hand, she's pleased that the more favorable Canadian rate has drawn visitors to the Comfort Inn and Fairfield Inn she manages in Great Falls.

"Spring and early summer have been extremely busy with us, with probably 25 to 30 percent more Canadian tourists helping fill our rooms more often," Cook said. "A lot of them have told us the better rate allows them to stay longer and spend more."

On the other hand, Cook and her family also travel to Canada to watch a son play baseball.

"The rates we pay have gradually gone up the last two or three years, and as a result we can't shop as much or stay as many days," she said.


Reach Tribune Staff Writer Peter Johnson at 791-1476, 800 438-6600 or pjohnson@greatfallstribune.com.

http://www.greatfallstribune.com/apps/pbcs.dll/article?AID=/20070715/NEWS01/707150302/1002