Posted on 10/05/2007 8:54:26 AM PDT by SwinneySwitch
Our neighbors to the north are prospering. That's good news for businesses here in the Valley
A strong economy north of the border will likely mean a few more “ehs” and “aboots” in the Rio Grande Valley this winter.
The number of visitors from Canada has been growing among the region’s Winter Texan population in recent years, and last week the Canadian dollar hit an all-time high versus the U.S. dollar. For the first time in more than 30 years, the Canadian dollar — colloquially known as the loonie — is worth more than the U.S. dollar.
In short, Canadians traveling to the United States this fall are set to get almost 50 percent more than they did on the exchange five years ago.
RV resorts are already reaping the profits.
“A lot of (Canadians) that have never been down here before are planning trips,” said Wally Olejnik, manager of the Tradewinds and Mission Bell RV resorts in Mission.
His two resorts usually are home to about 55 to 60 Canadian couples who make the 1,700-mile trek here for the winter, but this year he is expecting five to ten more couples, he said. Most of the couples attribute their stay to the high value of the Canadian dollar, he said. The loonie’s rebound comes down to Canada’s strong economy and the weak exchange for the U.S. dollar, said Brian Bethune, an economist with Global Insight, a consulting analysis firm with headquarters in Boston.
But Canada’s rich supply of crude oil and natural gas, which are high on the global demand list, is a possible boon for the U.S. tourism and hospitality industries, Bethune said. “The most direct impact would be on tourism and related industries, which would be hotels, restaurants and tourism operators,” he said. “Therecould be also some additional impacts on retailers.”
This year, Canadian tourists are also expected to make more large purchases, like homes and cars, because of the loonie’s high value.
Because gains in the Canadian economy have been so healthy, Bethune expects the loonie to keep pace with the U.S. dollar for an extended period.
About 16,000 of the Valley’s Winter Texans — 13 percent — call Canada their permanent home, said Penny Simpson, director of the Valley Markets and Tourism Research Center at the University of Texas-Pan American. The percent of Winter Texans visiting here who are from Canada has more than doubled since 1998-99.
Winter Texans as a group inject millions of dollars into the South Texas economy each year. The average Winter Texan spends about $6,600 a year during his time here, according to a 2005 UTPA study. There are nearly 75,000 RV and mobile home sites in the Valley, used mostly by Winter Texans.
Mike MacKenzie, spokesman for the Canadian Snowbird Association, said the greatest impact of the strong loonie on the Valley may not be so much in the number of Canadians who winter down here as it is in how long they stay and how much more they spend.
“The ones that usually stay for four months may decide to stay for six,” he said. ____
Kyle Arnold covers business, the economy and general assignments for The Monitor. You can reach him at (956) 683-4410.
NAFTA Superhighway!!! [runs screaming for tinfoil]
Will the Peso be next?
Ping!
If you want on, or off this S. Texas/Mexico ping list, please FReepMail me.
??? It is nowhere in the article, which is about the rate of exchange US/Canada. Are you on the right thread?
LOL!
Just having some fun. No one reads the article on the NAFTA Superhighway threads, either. :)
Alright, don`t get your panties in a knot too quick.
The Canadian dollar was worth more than the greenback
50 years ago or so when it was something like $1.06.
When the Fed stops lowering their rates the buck will
bounce back. But if the Socialist party,aka democrats,
win it all then you`re economy is doomed.
I'm not entirely sure of this, the Canadians have restrictions as to how long they can be gone from Canada and still qualify for their socialist health insurance. Also they tend to head north in March for tax reasons as well.
As for the RV parks, many along the rapidly developing 83 Expressway are being sold to retail developers. The parks have depreciated out and many renters there had to leave permanent mobile homes that were too old to move out and sheds to the bulldozer.
Moral: own the dirt.
Either, veryrude?
Yes. Stop by one sometime. I’ll demonstrate.
Six months. Not sure if that's per year or per visit; for Ontario one must live in the province at least 6 months per year to qualify as a resident.
One hour of checking voting records of the top four R candidates reveals a clearly electable and superior candidate. And it isn't the Mitwitt, Rudith or Juan McCain.
I'm not actually happy about this, if that's what you think.
I'd prefer our dollar to stay near .85c.
Very cool Liberty!
How wonderful that your farm is still family owned, and operated. Good for you!
I will always remember the time I picked my own orange right from the tree in Florida. (My parents were driving, I would have gone to Texas.)
The smell, the plumpness, the juice running down my face at the first bite, the taste.....heaven!
Maybe they’ll bring some Tim Horton Maple Filled Donuts, eh?
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